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 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):
	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