In This Article:
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 www.commercial-bank.com to view the latest consolidated Annual Report, news releases and other information about CEFC and Commercial Bank.
| Selected Financial Data (unaudited): |
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| Quarter Ended June 30, |
| Six Months Ended June 30, | ||||||||||||
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| 2022 |
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| 2021 |
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| 2022 |
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| 2021 |
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| Return on Equity (ROE) |
| 14.23% |
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| 13.15% |
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| 20.51% |
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| 14.76% |
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| Return on Assets (ROA) |
| 0.97% |
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| 0.97% |
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| 1.47% |
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| 1.11% |
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| Net Interest Margin |
| 3.02% |
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| 2.99% |
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| 3.68% |
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| 3.17% |
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| June 30, |
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| 2022 |
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| 2021 |
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| Non-performing Assets Ratio |
| 0.11% |
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| 0.84% |
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| Tier 1 Leverage Capital(1) |
| 8.49% |
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| 8.79% |
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| Total Risk-based Capital(1) |
| 14.84% |
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| 15.89% |
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| Book Value Per Share | $9.81 |
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| $10.87 |
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| Market Value Per Share | $11.44 |
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| $10.75 |
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| (1) Ratios are for Commercial Bank. |
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| Consolidated Statements of Income (unaudited): |
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| Quarter Ended June 30, |
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| 2022 |
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| 2021 |
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| 2022 |
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| 2021 |
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| Interest Income | $ | 5,043,640 |
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| $ | 4,680,835 |
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| $ | 11,920,195 |
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| $ | 9,663,400 |
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| Interest Expense |
| 585,202 |
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| 608,648 |
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| 1,117,064 |
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| 1,248,522 |
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| Net Interest Income |
| 4,458,438 |
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| 4,072,187 |
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| 10,803,131 |
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| 8,414,878 |
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| Provision for loan losses |
| - |
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| - |
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| - |
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| - |
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| Non-interest income |
| 496,982 |
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| 603,232 |
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| 1,075,857 |
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| 1,185,915 |
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| Operating Expenses |
| 3,127,307 |
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| 2,955,606 |
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| 6,274,612 |
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| 5,779,458 |
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| Income before taxes |
| 1,828,113 |
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| 1,719,813 |
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| 5,604,376 |
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| 3,821,335 |
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| Income tax expense |
| 310,000 |
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| 308,000 |
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| 1,036,000 |
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| 698,000 |
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| Net Income | $ | 1,518,113 |
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| $ | 1,411,813 |
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| $ | 4,568,376 |
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| $ | 3,123,335 |
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| Net Income per share - diluted | $ | 0.38 |
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| $ | 0.36 |
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| $ | 1.15 |
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| $ | 0.79 |
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| Dividends declared | $ | 0.14 |
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| $ | 0.14 |
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| $ | 0.28 |
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| $ | 0.28 |
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| Consolidated Balance Sheets (unaudited): |
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| June 30, |
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| 2022 |
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| 2021 |
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| Assets |
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| Cash and cash equivalents | $ | 68,922,849 |
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| $ | 51,343,114 |
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| Time deposits with other banks |
| 11,450,000 |
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| 20,854,000 |
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| Securities |
| 103,209,588 |
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| 44,822,995 |
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| Loans |
| 412,037,495 |
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| 444,406,884 |
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| Allowance for loan losses |
| (3,831,495 | ) |
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| (4,238,164 | ) |
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| Loans, net |
| 408,206,000 |
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| 440,168,720 |
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| Premises and equipment, net |
| 8,595,466 |
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| 8,134,522 |
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| Other assets |
| 24,602,640 |
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| 22,308,977 |
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| Total Assets | $ | 624,986,543 |
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| $ | 587,632,328 |
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| Liabilities |
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| Deposits | $ | 545,892,457 |
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| $ | 492,885,149 |
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| FHLB borrowings |
| 24,000,000 |
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| 35,400,000 |
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| Trust preferred |
| 13,403,000 |
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| 13,403,000 |
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| Other liabilities |
| 2,792,569 |
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| 2,842,747 |
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| Total Liabilities |
| 586,088,026 |
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| 544,530,896 |
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| Equity |
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| Total Equity |
| 38,898,517 |
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| 43,101,432 |
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| Total Liabilities and Equity | $ | 624,986,543 |
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| $ | 587,632,328 |
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Contact:
Kevin A. Twardy
CFO and COO
989-875-5528