Commercial National Financial Corporation Reports 4ᵗʰ Quarter 2020 Earnings
ITHACA, Mich., Jan. 28, 2021 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced fourth quarter 2020 net income of $1,237,000, or $.31 per share compared to fourth quarter 2019 net income of $1,316,000, or $.33 per share. Return on Equity (ROE) was 11.91% for the fourth quarter of 2020 compared to 13.51% for the fourth quarter of 2019.
For the fourth quarter of 2020, net interest income increased $133,000, or 3.5% compared to the fourth quarter of 2019 primarily due to interest and accretion of fees from Paycheck Protection Program loans. These loans were authorized by the CARES Act approved by Congress in late March in response to the Covid-19 pandemic. Operating expenses increased by $59,000, or 2.1% primarily due to the absence of FDIC insurance expense small bank assessment credits that were received in the prior year.
The provision for loan losses expense was $200,000 for the fourth quarter of 2020, compared to none for the fourth quarter of 2019. The provision expense primarily relates to specific reserve allocations to pandemic-affected borrowers.
Total assets were $547.8 million at December 31, 2020 compared to $504.9 million at December 31, 2019. The increase was primarily due to $31.6 million of Paycheck Protection Program loans outstanding at December 31, 2020 compared to zero at December 31, 2019. Total loans of $409.1 million increased $23.4 million, or 6.1% year over year.
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 December 31, | Twelve Months Ended December 31, | ||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Return on Equity (ROE) | 11.91 | % | 13.51 | % | 10.82 | % | 13.51 | % | |||||||
| Return on Assets (ROA) | 0.90 | % | 1.02 | % | 0.81 | % | 0.97 | % | |||||||
| Net Interest Margin | 3.02 | % | 3.15 | % | 3.07 | % | 3.03 | % | |||||||
| December 31, | |||||||||||||||
| 2020 | 2019 | ||||||||||||||
| Non-performing Assets Ratio | 1.35 | % | 0.70 | % | |||||||||||
| Tier 1 Leverage Capital(1) | 8.99 | % | 9.26 | % | |||||||||||
| Total Risk-based Capital(1) | 15.50 | % | 14.18 | % | |||||||||||
| Book Value Per Share | $ | 10.42 | $ | 9.77 | |||||||||||
| Market Value Per Share | $ | 9.25 | $ | 11.45 | |||||||||||
| (1) Ratios are for Commercial Bank. | |||||||||||||||
| Consolidated Statements of Income (unaudited): | |||||||||||||||
| Quarter Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Interest Income | $ | 4,626,763 | $ | 4,958,167 | $ | 19,028,433 | $ | 20,060,797 | |||||||
| Interest Expense | 722,502 | 1,186,712 | 3,507,989 | 5,371,110 | |||||||||||
| Net Interest Income | 3,904,261 | 3,771,455 | 15,520,444 | 14,689,687 | |||||||||||
| Provision for loan losses | 200,000 | - | 1,450,000 | - | |||||||||||
| Non-interest income | 606,595 | 612,663 | 2,216,653 | 2,510,428 | |||||||||||
| Operating Expenses | 2,812,374 | 2,753,346 | 11,063,677 | 11,111,539 | |||||||||||
| Income before taxes | 1,498,482 | 1,630,772 | 5,223,420 | 6,088,576 | |||||||||||
| Income tax expense | 261,500 | 314,500 | 859,000 | 1,070,000 | |||||||||||
| Net Income | $ | 1,236,982 | $ | 1,316,272 | $ | 4,364,420 | $ | 5,018,576 | |||||||
| Net Income per share – diluted | $ | 0.31 | $ | 0.33 | $ | 1.10 | $ | 1.27 | |||||||
| Dividends declared | $ | 0.14 | $ | 0.13 | $ | 0.56 | $ | 0.52 | |||||||
| Consolidated Balance Sheets (unaudited): | |||||||||||||||
| December 31, | |||||||||||||||
| 2020 | 2019 | ||||||||||||||
| Assets | |||||||||||||||
| Cash and cash equivalents | $ | 42,773,240 | $ | 21,807,616 | |||||||||||
| Time deposits with other banks | 24,337,000 | 31,956,000 | |||||||||||||
| Securities | 45,738,432 | 38,214,458 | |||||||||||||
| Loans | 409,106,743 | 385,691,917 | |||||||||||||
| Allowance for loan losses | (4,215,192 | ) | (2,751,767 | ) | |||||||||||
| Loans, net | 404,891,551 | 382,940,150 | |||||||||||||
| Premises and equipment, net | 8,148,851 | 8,343,479 | |||||||||||||
| Other assets | 21,890,497 | 21,676,803 | |||||||||||||
| Total Assets | $ | 547,779,571 | $ | 504,938,506 | |||||||||||
| Liabilities | |||||||||||||||
| Deposits | $ | 450,901,065 | $ | 390,063,519 | |||||||||||
| Other borrowings | 39,480,000 | 59,501,813 | |||||||||||||
| Trust preferred | 13,403,000 | 13,403,000 | |||||||||||||
| Other liabilities | 2,658,928 | 3,216,264 | |||||||||||||
| Total Liabilities | 506,442,993 | 466,184,596 | |||||||||||||
| Equity | |||||||||||||||
| Total Equity | 41,336,578 | 38,753,910 | |||||||||||||
| Total Liabilities and Equity | $ | 547,779,571 | $ | 504,938,506 | |||||||||||
Contact:
Kevin A. Twardy
CFO and COO
989-875-5528
