CEFC - Commercial National Financial Corporation Reports 4th Quarter 2021 Earnings
ITHACA, Mich., Jan. 31, 2022 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced fourth quarter 2021 net income of $1,765,000, or $.45 per share compared to fourth quarter 2020 net income of $1,237,000, or $.31 per share. Return on Equity (ROE) was 15.62% for the fourth quarter of 2021 compared to 11.91% for the fourth quarter of 2020.
For the fourth quarter of 2021, net interest income increased $590,000, or 15.1% compared to the fourth quarter of 2020 primarily due to higher accretion on Paycheck Protection Program (PPP) loans as well as from a higher average balance of interest-earning assets. Non-interest income decreased by $75,000, or 12.3% primarily due to lower miscellaneous income, partially offset by higher debit card interchange revenue. Operating expenses increased by $326,000 or 11.6% primarily due to higher compensation and benefits expense. During 2021, we hired additional commercial lending and treasury employees.
The provision for loan losses expense was negative $275,000 for the fourth quarter of 2021, compared to expense of $200,000 for the fourth quarter of 2020. The negative provision expense in the fourth quarter of 2021 was primarily due to improved economic conditions and lower allocations to classified loans as compared to the fourth quarter of 2020.
Total assets were $610.8 million at December 31, 2021 compared to $547.8 million at December 31, 2020. The increase was primarily due to core deposit growth, partially offset by lower wholesale borrowings. At December 31, 2021, Paycheck Protection Program loans outstanding were approximately $50 million compared to $31 million at December 31, 2020.
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, |
| 2021 |
| 2020 |
| 2021 |
| 2020 |
| Return on Equity (ROE) |
| 15.62% |
| 11.91% |
| 14.63% |
| 10.82% |
| Return on Assets (ROA) |
| 1.14% |
| 0.90% |
| 1.09% |
| 0.81% |
| Net Interest Margin |
| 3.11% |
| 3.02% |
| 3.10% |
| 3.07% |
| December 31, |
| 2021 |
| 2020 |
| Non-performing Assets Ratio |
| 0.72% |
| 1.35% |
| Tier 1 Leverage Capital (1) |
| 8.63% |
| 8.99% |
| Total Risk-based Capital (1) |
| 15.17% |
| 15.50% |
| Book Value Per Share |
| $11.32 |
| $10.42 |
| Market Value Per Share |
| $13.00 |
| $9.25 |
| (1) Ratios are for Commercial Bank. |
| . |
| . |
| Consolidated Statements of Income (unaudited): |
| Quarter Ended December 31, |
| Year Ended December 31, |
| 2021 |
| 2020 |
| 2021 |
| 2020 |
| Interest Income |
| $ |
| 5,061,892 |
| $ |
| 4,626,763 |
| $ |
| 19,382,389 |
| $ |
| 19,028,433 |
| Interest Expense |
| 567,963 |
| 722,502 |
| 2,406,284 |
| 3,507,989 |
| Net Interest Income |
| 4,493,929 |
| 3,904,261 |
| 16,976,105 |
| 15,520,444 |
| Provision for loan losses |
| (275,000) |
| 200,000 |
| (500,000) |
| 1,450,000 |
| Non-interest income |
| 531,784 |
| 606,595 |
| 2,323,498 |
| 2,216,653 |
| Operating Expenses |
| 3,137,945 |
| 2,812,374 |
| 12,023,496 |
| 11,063,677 |
| Income before taxes |
| 2,162,768 |
| 1,498,482 |
| 7,776,107 |
| 5,223,420 |
| Income tax expense |
| 398,000 |
| 261,500 |
| 1,410,000 |
| 859,000 |
| Net Income |
| $ |
| 1,764,768 |
| $ |
| 1,236,982 |
| $ |
| 6,366,107 |
| $ |
| 4,364,420 |
| Net Income per share – diluted |
| $ |
| 0.45 |
| $ |
| 0.31 |
| $ |
| 1.61 |
| $ |
| 1.10 |
| Dividends declared |
| $ |
| 0.14 |
| $ |
| 0.14 |
| $ |
| 0.56 |
| $ |
| 0.56 |
| Consolidated Balance Sheets (unaudited): |
| December 31, |
| 2021 |
| 2020 |
| Assets |
| Cash and cash equivalents |
| $ |
| 28,713,832 |
| $ |
| 42,773,240 |
| Time deposits with other banks |
| 20,854,000 |
| 24,337,000 |
| Securities |
| 81,934,068 |
| 45,738,432 |
| Loans |
| 451,571,794 |
| 409,106,744 |
| Allowance for loan losses |
| (3,820,897) |
| (4,215,192) |
| Loans, net |
| 447,750,897 |
| 404,891,552 |
| Premises and equipment, net |
| 8,479,525 |
| 8,148,851 |
| Other assets |
| 23,070,012 |
| 21,890,496 |
| Total Assets |
| $ |
| 610,802,334 |
| $ |
| 547,779,571 |
| Liabilities |
| Deposits |
| $ |
| 515,058,691 |
| $ |
| 450,901,065 |
| Other borrowings |
| 34,400,000 |
| 39,480,000 |
| Trust preferred |
| 13,403,000 |
| 13,403,000 |
| Other liabilities |
| 3,047,041 |
| 2,658,928 |
| Total Liabilities |
| 565,908,732 |
| 506,442,993 |
| Equity |
| Total Equity |
| 44,893,602 |
| 41,336,578 |
| Total Liabilities and Equity |
| $ |
| 610,802,334 |
| $ |
| 547,779,571 |
Contact:
Kevin A. Twardy
CFO and COO
989-875-5528