CEFC - Commercial National Financial Corporation Reports 1st Quarter 2022 Earnings
ITHACA, Mich., April 29, 2022 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced first quarter 2022 net income of $3,050,000, or $.77 per share compared to first quarter 2021 net income of $1,712,000, or $.43 per share. Return on Equity (ROE) was 26.26% for the first quarter of 2022 compared to 16.42% for the first quarter of 2021.
For the first quarter of 2022, net interest income increased $2,002,000, or 46.1% compared to the first quarter of 2021 primarily due to significantly higher accretion on Paycheck Protection Program (PPP) loans. During the quarter, $46.2 million of PPP loans were forgiven by the Small Business Administration. At March 31, 2022, PPP loans outstanding were approximately $3.8 million compared to $60.4 million at March 31, 2021. Total loans, excluding PPP loans, increased $22 million, or 5.7% when comparing March 31, 2022 to March 31, 2021.
Noninterest income decreased by $4,000, or .7% primarily due to lower miscellaneous income, partially offset by higher debit card interchange revenue. Operating expenses increased by $323,000 or 11.5% primarily due to higher compensation and benefits expense associated with hiring additional lending and treasury team members.
Total assets were $627.4 million at March 31, 2022 compared to $569.8 million at March 31, 2021. The increase was primarily due to core deposit growth, partially offset by lower wholesale borrowings.
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 March 31, |
| 2022 |
| 2021 |
| Return on Equity (ROE) |
| 26.26 |
| % |
| 16.42 |
| % |
| Return on Assets (ROA) |
| 1.99 |
| % |
| 1.25 |
| % |
| Net Interest Margin |
| 4.37 |
| % |
| 3.35 |
| % |
| March 31, |
| 2022 |
| 2021 |
| Non-performing Assets Ratio |
| 0.70 |
| % |
| 1.09 |
| % |
| Tier 1 Leverage Capital (1) |
| 8.59 |
| % |
| 9.06 |
| % |
| Total Risk-based Capital (1) |
| 14.94 |
| % |
| 15.59 |
| % |
| Book Value Per Share |
| $ |
| 11.51 |
| $ |
| 10.68 |
| Market Value Per Share |
| $ |
| 13.30 |
| $ |
| 10.50 |
| (1) Ratios are for Commercial Bank. |
| . |
| . |
| Consolidated Statements of Income (unaudited): |
| Quarter Ended March 31, |
| 2022 |
| 2021 |
| Interest Income |
| $ |
| 6,876,555 |
| $ |
| 4,982,565 |
| Interest Expense |
| 531,862 |
| 639,874 |
| Net Interest Income |
| 6,344,693 |
| 4,342,691 |
| Provision for loan losses |
| - |
| - |
| Non-interest income |
| 578,875 |
| 582,683 |
| Operating Expenses |
| 3,147,305 |
| 2,823,852 |
| Income before taxes |
| 3,776,263 |
| 2,101,522 |
| Income tax expense |
| 726,000 |
| 390,000 |
| Net Income |
| $ |
| 3,050,263 |
| $ |
| 1,711,522 |
| Net Income per share - diluted |
| $ |
| 0.77 |
| $ |
| 0.43 |
| Dividends declared |
| $ |
| 0.14 |
| $ |
| 0.14 |
| Consolidated Balance Sheets (unaudited): |
| March 31, |
| 2022 |
| 2021 |
| Assets |
| Cash and cash equivalents |
| $ |
| 67,543,910 |
| $ |
| 29,060,961 |
| Time deposits with other banks |
| 14,380,000 |
| 22,097,000 |
| Securities |
| 108,533,063 |
| 46,981,725 |
| Loans |
| 410,228,551 |
| 444,836,860 |
| Allowance for loan losses |
| (3,831,809 |
| ) |
| (4,256,978 |
| ) |
| Loans, net |
| 406,396,742 |
| 440,579,882 |
| Premises and equipment, net |
| 8,377,785 |
| 8,087,637 |
| Other assets |
| 22,165,771 |
| 22,967,038 |
| Total Assets |
| $ |
| 627,397,271 |
| $ |
| 569,774,243 |
| Liabilities |
| Deposits |
| $ |
| 531,049,989 |
| $ |
| 475,090,235 |
| Other borrowings |
| 34,400,000 |
| 35,400,000 |
| Trust preferred |
| 13,403,000 |
| 13,403,000 |
| Other liabilities |
| 2,886,462 |
| 3,533,757 |
| Total Liabilities |
| 581,739,451 |
| 527,426,992 |
| Equity |
| Total Equity |
| 45,657,820 |
| 42,347,251 |
| Total Liabilities and Equity |
| $ |
| 627,397,271 |
| $ |
| 569,774,243 |
Contact:
Kevin A. Twardy
CFO and COO
989-875-5528