Commercial National Financial Corporation Reports 2nd Quarter 2021 Earnings
ITHACA, Mich., July 28, 2021 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced second quarter 2021 net income of $1,412,000, or $.36 per share compared to second quarter 2020 net income of $1,147,000, or $.29 per share. Return on Equity (ROE) was 13.15% for the second quarter of 2021 compared to 11.54% for the second quarter of 2020.
For the second quarter of 2021, net interest income increased $123,000, or 3.1% compared to the second quarter of 2020 primarily due to accelerated accretion of deferred fees from Paycheck Protection Program (PPP) loan payoffs. These loans were authorized by the CARES Act approved by Congress in response to the Covid-19 pandemic. Non-interest income increased by $69,000, or 12.8% primarily due to higher debit card fees. Operating expenses increased by $299,000, or 11.2% primarily due to the hiring of additional commercial lending and treasury employees as well as from professional fees related to our upcoming core data processing conversion.
The provision for loan losses expense was zero for the second quarter of 2021, compared to $450,000 for the second quarter of 2020. The provision expense in the second quarter of 2020 was primarily due to additional environmental factor allocations related to worsening economic conditions from the Covid-19 pandemic and higher classified loans.
Total assets were $587.6 million at June 30, 2021 compared to $554.8 million at June 30, 2020. The increase was primarily due to core deposit growth, partially offset by lower wholesale borrowings. At June 30, 2021, Paycheck Protection Program loans outstanding were approximately $60 million compared to $29.9 million at June 30, 2020.
Commercial National Financial Corporation operates through a single subsidiary bank, Commercial Bank. Visit to view the latest consolidated Annual Report, news releases and other information about CEFC and Commercial Bank.
| Selected Financial Data (unaudited): | |||||||||||||||
| Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Return on Equity (ROE) | 13.15 | % | 11.54 | % | 14.76 | % | 9.90 | % | |||||||
| Return on Assets (ROA) | 0.97 | % | 0.84 | % | 1.11 | % | 0.74 | % | |||||||
| Net Interest Margin | 2.99 | % | 3.07 | % | 3.17 | % | 3.13 | % | |||||||
| June 30, | |||||||||||||||
| 2021 | 2020 | ||||||||||||||
| Non-performing Assets Ratio | 0.84 | % | 0.79 | % | |||||||||||
| Tier 1 Leverage Capital(1) | 8.79 | % | 8.75 | % | |||||||||||
| Total Risk-based Capital(1) | 15.89 | % | 14.59 | % | |||||||||||
| Book Value Per Share | $ | 10.87 | $ | 10.12 | |||||||||||
| Market Value Per Share | $ | 10.75 | $ | 9.40 | |||||||||||
| (1) Ratios are for Commercial Bank. | . | . | |||||||||||||
| Consolidated Statements of Income (unaudited): | |||||||||||||||
| Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Interest Income | $ | 4,680,835 | $ | 4,859,900 | $ | 9,663,400 | $ | 9,686,167 | |||||||
| Interest Expense | 608,648 | 911,150 | 1,248,522 | 1,977,601 | |||||||||||
| Net Interest Income | 4,072,187 | 3,948,750 | 8,414,878 | 7,708,566 | |||||||||||
| Provision for loan losses | - | 450,000 | - | 950,000 | |||||||||||
| Non-interest income | 603,232 | 534,710 | 1,185,915 | 1,043,386 | |||||||||||
| Operating Expenses | 2,955,606 | 2,657,045 | 5,779,458 | 5,478,615 | |||||||||||
| Income before taxes | 1,719,813 | 1,376,415 | 3,821,335 | 2,323,337 | |||||||||||
| Income tax expense | 308,000 | 229,500 | 698,000 | 373,000 | |||||||||||
| Net Income | $ | 1,411,813 | $ | 1,146,915 | $ | 3,123,335 | $ | 1,950,337 | |||||||
| Net Income per share -- diluted | $ | 0.36 | $ | 0.29 | $ | 0.79 | $ | 0.49 | |||||||
| Dividends declared | $ | 0.14 | $ | 0.14 | $ | 0.28 | $ | 0.28 | |||||||
| Consolidated Balance Sheets (unaudited): | |||||||||||||||
| June 30, | |||||||||||||||
| 2021 | 2020 | ||||||||||||||
| Assets | |||||||||||||||
| Cash and cash equivalents | $ | 51,343,114 | $ | 45,982,221 | |||||||||||
| Time deposits with other banks | 20,854,000 | 28,288,000 | |||||||||||||
| Securities | 44,822,995 | 38,972,896 | |||||||||||||
| Loans | 444,406,884 | 415,605,705 | |||||||||||||
| Allowance for loan losses | (4,238,164 | ) | (3,733,130 | ) | |||||||||||
| Loans, net | 440,168,720 | 411,872,575 | |||||||||||||
| Premises and equipment, net | 8,134,522 | 8,242,515 | |||||||||||||
| Other assets | 22,308,977 | 21,472,268 | |||||||||||||
| Total Assets | $ | 587,632,328 | $ | 554,830,475 | |||||||||||
| Liabilities | |||||||||||||||
| Deposits | $ | 492,885,149 | $ | 447,477,547 | |||||||||||
| Other borrowings | 35,400,000 | 49,954,378 | |||||||||||||
| Trust preferred | 13,403,000 | 13,403,000 | |||||||||||||
| Other liabilities | 2,842,747 | 3,853,904 | |||||||||||||
| Total Liabilities | 544,530,896 | 514,688,829 | |||||||||||||
| Equity | |||||||||||||||
| Total Equity | 43,101,432 | 40,141,646 | |||||||||||||
| Total Liabilities and Equity | $ | 587,632,328 | $ | 554,830,475 | |||||||||||
Contact:
Kevin A. Twardy
CFO and COO
989-875-5528
