CEFC - Commercial National Financial Corporation Reports 4th Quarter 2022 Earnings
ITHACA, Mich., Jan. 30, 2023 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced fourth quarter 2022 net income of $1,912,000, or $.48 per share compared to fourth quarter 2021 net income of $1,765,000, or $.45 per share. Return on Equity (ROE) was 19.86% for the fourth quarter of 2022 compared to 15.62% for the fourth quarter of 2021.
For the fourth quarter of 2022, net interest income increased $595,000, or 13.2% compared to the fourth quarter of 2021 primarily due to higher market interest rates and the recovery of non-accrual loan interest. Total loans, excluding Paycheck Protection Program (PPP) loans, increased $9.2 million, or 2.3% when comparing December 31, 2022 to December 31, 2021. Non-interest income decreased by $41,000, or 7.7% primarily due to lower miscellaneous income. Operating expenses increased by $91,000, or 2.9% primarily due higher wages and miscellaneous expense.
Total assets were $613.8 million at December 31, 2022 compared to $610.8 million at December 31, 2021. The increase was primarily due to core deposit growth, partially offset by lower wholesale borrowings. At December 31, 2022, PPP loans outstanding were approximately $569,000 compared to $50 million at December 31, 2021.
The Board of Directors recently appointed Daniel Walcutt to the Bank and Holding Company Boards. Daniel is the President, CEO and owner of Nielsen Commercial Construction, Inc. located in Holt, Michigan.
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 December 31, |
| Year Ended December 31, |
| 2022 |
| 2021 |
| 2022 |
| 2021 |
| Return on Equity (ROE) |
| 19.86 |
| % |
| 15.62 |
| % |
| 19.20 |
| % |
| 14.63 |
| % |
| Return on Assets (ROA) |
| 1.22 |
| % |
| 1.14 |
| % |
| 1.29 |
| % |
| 1.09 |
| % |
| Net Interest Margin |
| 3.41 |
| % |
| 3.11 |
| % |
| 3.44 |
| % |
| 3.10 |
| % |
| December 31, |
| 2022 |
| 2021 |
| Non-performing Assets Ratio |
| 0.11 |
| % |
| 0.72 |
| % |
| Tier 1 Leverage Capital (1) |
| 8.68 |
| % |
| 8.63 |
| % |
| Total Risk-based Capital (1) |
| 15.18 |
| % |
| 15.17 |
| % |
| Book Value Per Share |
| $ |
| 9.91 |
| $ |
| 11.32 |
| Market Value Per Share |
| $ |
| 10.50 |
| $ |
| 13.00 |
| (1) Ratios are for Commercial Bank. |
| Consolidated Statements of Income (unaudited): |
| Quarter Ended December 31, |
| Year Ended December 31, |
| 2022 |
| 2021 |
| 2022 |
| 2021 |
| Interest Income |
| $ |
| 6,190,953 |
| $ |
| 5,061,892 |
| $ |
| 23,422,328 |
| $ |
| 19,382,389 |
| Interest Expense |
| 1,101,926 |
| 567,963 |
| 3,005,219 |
| 2,406,284 |
| Net Interest Income |
| 5,089,027 |
| 4,493,929 |
| 20,417,109 |
| 16,976,105 |
| Provision for loan losses |
| - |
| (275,000 |
| ) |
| - |
| (500,000 |
| ) |
| Non-interest income |
| 490,764 |
| 531,784 |
| 2,207,795 |
| 2,323,498 |
| Operating Expenses |
| 3,229,000 |
| 3,137,945 |
| 12,747,566 |
| 12,023,496 |
| Income before taxes |
| 2,350,791 |
| 2,162,768 |
| 9,877,338 |
| 7,776,107 |
| Income tax expense |
| 439,000 |
| 398,000 |
| 1,796,000 |
| 1,410,000 |
| Net Income |
| $ |
| 1,911,791 |
| $ |
| 1,764,768 |
| $ |
| 8,081,338 |
| $ |
| 6,366,107 |
| Net Income per share - diluted |
| $ |
| 0.48 |
| $ |
| 0.45 |
| $ |
| 2.04 |
| $ |
| 1.61 |
| Dividends declared |
| $ |
| 0.14 |
| $ |
| 0.14 |
| $ |
| 0.56 |
| $ |
| 0.56 |
| Consolidated Balance Sheets (unaudited): |
| December 31, |
| 2022 |
| 2021 |
| Assets |
| Cash and cash equivalents |
| $ |
| 61,071,786 |
| $ |
| 28,713,832 |
| Time deposits with other banks |
| 8,960,000 |
| 20,854,000 |
| Securities |
| 101,705,429 |
| 81,934,068 |
| Loans |
| 411,293,661 |
| 451,571,794 |
| Allowance for loan losses |
| (4,154,073 |
| ) |
| (3,820,897 |
| ) |
| Loans, net |
| 407,139,588 |
| 447,750,897 |
| Premises and equipment, net |
| 8,795,376 |
| 8,479,525 |
| Other assets |
| 26,082,215 |
| 23,070,012 |
| Total Assets |
| $ |
| 613,754,394 |
| $ |
| 610,802,334 |
| Liabilities |
| Deposits |
| $ |
| 538,732,322 |
| $ |
| 515,058,691 |
| FHLB borrowings |
| 19,000,000 |
| 34,400,000 |
| Trust preferred |
| 13,403,000 |
| 13,403,000 |
| Other liabilities |
| 3,305,797 |
| 3,047,041 |
| Total Liabilities |
| 574,441,119 |
| 565,908,732 |
| Equity |
| Total Equity |
| 39,313,275 |
| 44,893,602 |
| Total Liabilities and Equity |
| $ |
| 613,754,394 |
| $ |
| 610,802,334 |
Contact:
Kevin A. Twardy
CFO and COO
989-875-5528