CEFC - Commercial National Financial Corporation Reports 3rd Quarter 2021 Earnings
ITHACA, Mich., Oct. 29, 2021 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced third quarter 2021 net income of $1,478,000, or $.37 per share compared to third quarter 2020 net income of $1,177,000, or $.30 per share. Return on Equity (ROE) was 13.35% for the third quarter of 2021 compared to 11.50% for the third quarter of 2020.
For the third quarter of 2021, net interest income increased $160,000, or 4.1% compared to the third quarter of 2020 primarily due to a higher average balance of interest-earning assets, partially offset by 11 basis points of lower net interest margin. Non-interest income increased by $39,000, or 6.9% primarily due to higher debit card fees. Operating expenses increased by $333,000, or 12% primarily due to the hiring of additional commercial lending and treasury employees as well as from professional fees related to our core data processing conversion that was completed in September.
The provision for loan losses expense was negative $225,000 for the third quarter of 2021, compared to $300,000 for the third quarter of 2020. The negative provision expense in the third quarter of 2021 was primarily due to significantly improved economic conditions and lower allocations to classified loans as compared to the third quarter of 2020.
Total assets were $591.8 million at September 30, 2021 compared to $548.1 million at September 30, 2020. The increase was primarily due to core deposit growth, partially offset by lower wholesale borrowings. At September 30, 2021, Paycheck Protection Program loans outstanding were approximately $54.4 million compared to $32.2 million at September 30, 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 September 30, |
| Nine Months Ended September 30, |
| 2021 |
| 2020 |
| 2021 |
| 2020 |
| Return on Equity (ROE) |
| 13.35 |
| % |
| 11.50 |
| % |
| 14.28 |
| % |
| 10.45 |
| % |
| Return on Assets (ROA) |
| 1.00 |
| % |
| 0.85 |
| % |
| 1.07 |
| % |
| 0.78 |
| % |
| Net Interest Margin |
| 2.90 |
| % |
| 3.01 |
| % |
| 3.07 |
| % |
| 3.09 |
| % |
| September 30, |
| 2021 |
| 2020 |
| Non-performing Assets Ratio |
| 0.74 |
| % |
| 0.77 |
| % |
| Tier 1 Leverage Capital (1) |
| 8.83 |
| % |
| 8.84 |
| % |
| Total Risk-based Capital (1) |
| 15.38 |
| % |
| 15.39 |
| % |
| Book Value Per Share |
| $ |
| 11.07 |
| $ |
| 10.27 |
| Market Value Per Share |
| $ |
| 10.58 |
| $ |
| 9.11 |
| (1) Ratios are for Commercial Bank. |
| . |
| . |
| Consolidated Statements of Income (unaudited): |
| Quarter Ended September 30, |
| Nine Months Ended September 30, |
| 2021 |
| 2020 |
| 2021 |
| 2020 |
| Interest Income |
| $ |
| 4,657,097 |
| $ |
| 4,715,503 |
| $ |
| 14,320,497 |
| $ |
| 14,401,670 |
| Interest Expense |
| 589,799 |
| 807,886 |
| 1,838,321 |
| 2,785,487 |
| Net Interest Income |
| 4,067,298 |
| 3,907,617 |
| 12,482,176 |
| 11,616,183 |
| Provision for loan losses |
| (225,000 |
| ) |
| 300,000 |
| (225,000 |
| ) |
| 1,250,000 |
| Non-interest income |
| 605,799 |
| 566,672 |
| 1,791,714 |
| 1,560,698 |
| Operating Expenses |
| 3,106,093 |
| 2,772,687 |
| 8,885,551 |
| 8,201,942 |
| Income before taxes |
| 1,792,004 |
| 1,401,602 |
| 5,613,339 |
| 3,724,939 |
| Income tax expense |
| 314,000 |
| 224,500 |
| 1,012,000 |
| 597,500 |
| Net Income |
| $ |
| 1,478,004 |
| $ |
| 1,177,102 |
| $ |
| 4,601,339 |
| $ |
| 3,127,439 |
| Net Income per share - diluted |
| $ |
| 0.37 |
| $ |
| 0.30 |
| $ |
| 1.16 |
| $ |
| 0.79 |
| Dividends declared |
| $ |
| 0.14 |
| $ |
| 0.14 |
| $ |
| 0.42 |
| $ |
| 0.42 |
| Consolidated Balance Sheets (unaudited): |
| September 30, |
| 2021 |
| 2020 |
| Assets |
| Cash and cash equivalents |
| $ |
| 35,881,247 |
| $ |
| 51,221,763 |
| Time deposits with other banks |
| 20,854,000 |
| 22,839,000 |
| Securities |
| 59,058,059 |
| 38,306,539 |
| Loans |
| 449,036,166 |
| 409,697,305 |
| Allowance for loan losses |
| (4,086,664 |
| ) |
| (4,043,266 |
| ) |
| Loans, net |
| 444,949,502 |
| 405,654,039 |
| Premises and equipment, net |
| 8,311,175 |
| 8,217,624 |
| Other assets |
| 22,785,377 |
| 21,884,842 |
| Total Assets |
| $ |
| 591,839,360 |
| $ |
| 548,123,807 |
| Liabilities |
| Deposits |
| $ |
| 497,771,045 |
| $ |
| 451,610,662 |
| Other borrowings |
| 34,400,000 |
| 39,480,000 |
| Trust preferred |
| 13,403,000 |
| 13,403,000 |
| Other liabilities |
| 2,371,146 |
| 2,904,766 |
| Total Liabilities |
| 547,945,191 |
| 507,398,428 |
| Equity |
| Total Equity |
| 43,894,169 |
| 40,725,379 |
| Total Liabilities and Equity |
| $ |
| 591,839,360 |
| $ |
| 548,123,807 |
Contact:
Kevin A. Twardy
CFO and COO
989-875-5528