CEFC - Commercial National Financial Corporation Reports 3rd Quarter 2022 Earnings
ITHACA, Mich., Oct. 27, 2022 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced third quarter 2022 net income of $1,601,000, or $.40 per share compared to third quarter 2021 net income of $1,478,000, or $.37 per share. Return on Equity (ROE) was 15.72% for the third quarter of 2022 compared to 13.35% for the third quarter of 2021.
For the third quarter of 2022, net interest income increased $458,000, or 11.3% compared to the third quarter of 2021 primarily due to higher market interest rates and interest-earning assets. Total loans, excluding Paycheck Protection Program (PPP) loans, increased $21.3 million, or 5.4% when comparing September 30, 2022 to September 30, 2021. Non-interest income increased by $35,000, or 5.8% primarily due to higher debit card interchange fees. Operating expenses increased by $138,000, or 4.4% primarily due to higher wages and benefits expense.
Total assets were $613.1 million at September 30, 2022 compared to $591.8 million at September 30, 2021. The increase was primarily due to core deposit growth, partially offset by lower wholesale borrowings. At September 30, 2022, PPP loans outstanding were approximately $1.0 million compared to $54.4 million at September 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 September 30, |
| Nine Months Ended September 30, |
| 2022 |
| 2021 |
| 2022 |
| 2021 |
| Return on Equity (ROE) |
| 15.72 |
| % |
| 13.35 |
| % |
| 19.00 |
| % |
| 14.28 |
| % |
| Return on Assets (ROA) |
| 1.02 |
| % |
| 1.00 |
| % |
| 1.32 |
| % |
| 1.07 |
| % |
| Net Interest Margin |
| 3.02 |
| % |
| 2.90 |
| % |
| 3.45 |
| % |
| 3.07 |
| % |
| September 30, |
| 2022 |
| 2021 |
| Non-performing Assets Ratio |
| 0.11 |
| % |
| 0.74 |
| % |
| Tier 1 Leverage Capital (1) |
| 8.59 |
| % |
| 8.83 |
| % |
| Total Risk-based Capital (1) |
| 14.74 |
| % |
| 15.38 |
| % |
| Book Value Per Share |
| $ |
| 9.39 |
| $ |
| 11.07 |
| Market Value Per Share |
| $ |
| 10.75 |
| $ |
| 10.58 |
| (1) Ratios are for Commercial Bank. |
| Consolidated Statements of Income (unaudited): |
| Quarter Ended September 30, |
| Nine Months Ended September 30, |
| 2022 |
| 2021 |
| 2022 |
| 2021 |
| Interest Income |
| $ |
| 5,311,180 |
| $ |
| 4,657,097 |
| $ |
| 17,231,375 |
| $ |
| 14,320,497 |
| Interest Expense |
| 786,229 |
| 589,799 |
| 1,903,293 |
| 1,838,321 |
| Net Interest Income |
| 4,524,951 |
| 4,067,298 |
| 15,328,082 |
| 12,482,176 |
| Provision for loan losses |
| - |
| (225,000 |
| ) |
| - |
| (225,000 |
| ) |
| Non-interest income |
| 641,174 |
| 605,799 |
| 1,717,031 |
| 1,791,714 |
| Operating Expenses |
| 3,243,954 |
| 3,106,093 |
| 9,518,566 |
| 8,885,551 |
| Income before taxes |
| 1,922,171 |
| 1,792,004 |
| 7,526,547 |
| 5,613,339 |
| Income tax expense |
| 321,000 |
| 314,000 |
| 1,357,000 |
| 1,012,000 |
| Net Income |
| $ |
| 1,601,171 |
| $ |
| 1,478,004 |
| $ |
| 6,169,547 |
| $ |
| 4,601,339 |
| Net Income per share – diluted |
| $ |
| 0.40 |
| $ |
| 0.37 |
| $ |
| 1.56 |
| $ |
| 1.16 |
| Dividends declared |
| $ |
| 0.14 |
| $ |
| 0.14 |
| $ |
| 0.42 |
| $ |
| 0.42 |
| Consolidated Balance Sheets (unaudited): |
| September 30, |
| 2022 |
| 2021 |
| Assets |
| Cash and cash equivalents |
| $ |
| 53,518,943 |
| $ |
| 35,881,247 |
| Time deposits with other banks |
| 9,458,000 |
| 20,854,000 |
| Securities |
| 102,600,641 |
| 59,058,059 |
| Loans |
| 416,905,083 |
| 449,036,166 |
| Allowance for loan losses |
| (4,055,878 |
| ) |
| (4,086,664 |
| ) |
| Loans, net |
| 412,849,205 |
| 444,949,502 |
| Premises and equipment, net |
| 8,853,644 |
| 8,311,175 |
| Other assets |
| 25,825,343 |
| 22,785,377 |
| Total Assets |
| $ |
| 613,105,776 |
| $ |
| 591,839,360 |
| Liabilities |
| Deposits |
| $ |
| 540,250,306 |
| $ |
| 497,771,045 |
| FHLB borrowings |
| 19,000,000 |
| 34,400,000 |
| Trust preferred |
| 13,403,000 |
| 13,403,000 |
| Other liabilities |
| 3,210,208 |
| 2,371,146 |
| Total Liabilities |
| 575,863,514 |
| 547,945,191 |
| Equity |
| Total Equity |
| 37,242,262 |
| 43,894,169 |
| Total Liabilities and Equity |
| $ |
| 613,105,776 |
| $ |
| 591,839,360 |
Contact:
Kevin A. Twardy
CFO and COO
989-875-5528