Commercial National Financial Corporation Reports 2nd Quarter 2022 Earnings
ITHACA, Mich., July 26, 2022 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced second quarter 2022 net income of $1,518,113, or $.38 per share compared to second quarter 2021 net income of $1,411,813, or $.36 per share. Return on Equity (ROE) was 14.23% for the second quarter of 2022 compared to 13.15% for the second quarter of 2021.
For the second quarter of 2022, net interest income increased $386,000, or 9.5% compared to the second quarter of 2021 primarily due to higher interest-earning assets as well as from the recovery of interest on non-accrual loan payoffs. Total loans, excluding Paycheck Protection Program (“PPP”) loans, increased $25.9 million, or 6.7% when comparing June 30, 2022 to June 30, 2021. Non-interest income decreased by $106,000, or 17.6% primarily due to lower miscellaneous income, partially offset by higher debit card fees. Operating expenses increased by $172,000, or 5.8% primarily due to higher wages and benefits expense.
Total assets were $625 million at June 30, 2022 compared to $587.6 million at June 30, 2021. The increase was primarily due to core deposit growth, partially offset by lower wholesale borrowings. At June 30, 2022, PPP loans outstanding were approximately $1.8 million compared to $60 million at June 30, 2021.
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, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Return on Equity (ROE) | 14.23% | 13.15% | 20.51% | 14.76% | |||||||||||
| Return on Assets (ROA) | 0.97% | 0.97% | 1.47% | 1.11% | |||||||||||
| Net Interest Margin | 3.02% | 2.99% | 3.68% | 3.17% | |||||||||||
| June 30, | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| Non-performing Assets Ratio | 0.11% | 0.84% | |||||||||||||
| Tier 1 Leverage Capital(1) | 8.49% | 8.79% | |||||||||||||
| Total Risk-based Capital(1) | 14.84% | 15.89% | |||||||||||||
| Book Value Per Share | $9.81 | $10.87 | |||||||||||||
| Market Value Per Share | $11.44 | $10.75 | |||||||||||||
| (1) Ratios are for Commercial Bank. | |||||||||||||||
| Consolidated Statements of Income (unaudited): | |||||||||||||||
| Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Interest Income | $ | 5,043,640 | $ | 4,680,835 | $ | 11,920,195 | $ | 9,663,400 | |||||||
| Interest Expense | 585,202 | 608,648 | 1,117,064 | 1,248,522 | |||||||||||
| Net Interest Income | 4,458,438 | 4,072,187 | 10,803,131 | 8,414,878 | |||||||||||
| Provision for loan losses | - | - | - | - | |||||||||||
| Non-interest income | 496,982 | 603,232 | 1,075,857 | 1,185,915 | |||||||||||
| Operating Expenses | 3,127,307 | 2,955,606 | 6,274,612 | 5,779,458 | |||||||||||
| Income before taxes | 1,828,113 | 1,719,813 | 5,604,376 | 3,821,335 | |||||||||||
| Income tax expense | 310,000 | 308,000 | 1,036,000 | 698,000 | |||||||||||
| Net Income | $ | 1,518,113 | $ | 1,411,813 | $ | 4,568,376 | $ | 3,123,335 | |||||||
| Net Income per share - diluted | $ | 0.38 | $ | 0.36 | $ | 1.15 | $ | 0.79 | |||||||
| Dividends declared | $ | 0.14 | $ | 0.14 | $ | 0.28 | $ | 0.28 | |||||||
| Consolidated Balance Sheets (unaudited): | |||||||||||||||
| June 30, | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| Assets | |||||||||||||||
| Cash and cash equivalents | $ | 68,922,849 | $ | 51,343,114 | |||||||||||
| Time deposits with other banks | 11,450,000 | 20,854,000 | |||||||||||||
| Securities | 103,209,588 | 44,822,995 | |||||||||||||
| Loans | 412,037,495 | 444,406,884 | |||||||||||||
| Allowance for loan losses | (3,831,495 | ) | (4,238,164 | ) | |||||||||||
| Loans, net | 408,206,000 | 440,168,720 | |||||||||||||
| Premises and equipment, net | 8,595,466 | 8,134,522 | |||||||||||||
| Other assets | 24,602,640 | 22,308,977 | |||||||||||||
| Total Assets | $ | 624,986,543 | $ | 587,632,328 | |||||||||||
| Liabilities | |||||||||||||||
| Deposits | $ | 545,892,457 | $ | 492,885,149 | |||||||||||
| FHLB borrowings | 24,000,000 | 35,400,000 | |||||||||||||
| Trust preferred | 13,403,000 | 13,403,000 | |||||||||||||
| Other liabilities | 2,792,569 | 2,842,747 | |||||||||||||
| Total Liabilities | 586,088,026 | 544,530,896 | |||||||||||||
| Equity | |||||||||||||||
| Total Equity | 38,898,517 | 43,101,432 | |||||||||||||
| Total Liabilities and Equity | $ | 624,986,543 | $ | 587,632,328 | |||||||||||
Contact:
Kevin A. Twardy
CFO and COO
989-875-5528
