CEFC - Commercial National Financial Corporation Reports 2nd Quarter 2023 Earnings
ITHACA, Mich., July 25, 2023 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced second quarter 2023 net income of $1,543,000, or $.39 per share compared to second quarter 2022 net income of $1,518,000, or $.38 per share. Return on Equity (ROE) was 14.44% for the second quarter of 2023 compared to 14.23% for the second quarter of 2022.
For the second quarter of 2023, net interest income increased by $81,000, or 1.8% compared to the second quarter of 2022 primarily due to a higher net interest margin, partially offset by lower average interest-earning assets. Total loans increased $9.2 million, or 2.2% when comparing June 30, 2023 to June 30, 2022. Non-interest income increased by $18,000, or 3.7% primarily due to higher miscellaneous income. Operating expenses increased by $62,000, or 2% primarily due to higher wages and benefits expense.
Total assets were $587.9 million at June 30, 2023 compared to $625 million at June 30, 2022. The decrease was primarily due to the repayment of $17.7 million of wholesale borrowings with excess liquidity as well as lower municipal and other public deposits. CEFC’s wholly owned subsidiary, Commercial Bank, remains significantly above “well capitalized” for regulatory purposes.
Visit www.commercial-bank.com to view the latest news releases and other information about CEFC and Commercial Bank.
| Selected Financial Data (unaudited): |
| Quarter Ended June 30, |
| Six Months Ended June 30, |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| Return on Equity (ROE) |
| 14.44 |
| % |
| 14.23 |
| % |
| 14.42 |
| % |
| 20.51 |
| % |
| Return on Assets (ROA) |
| 1.04 |
| % |
| 0.97 |
| % |
| 1.01 |
| % |
| 1.47 |
| % |
| Net Interest Margin |
| 3.23 |
| % |
| 3.00 |
| % |
| 3.26 |
| % |
| 3.68 |
| % |
| June 30, |
| 2023 |
| 2022 |
| Non-performing Assets Ratio |
| 0.18 |
| % |
| 0.11 |
| % |
| Tier 1 Leverage Capital (1) |
| 9.37 |
| % |
| 8.49 |
| % |
| Total Risk-based Capital (1) |
| 15.22 |
| % |
| 14.84 |
| % |
| Book Value Per Share |
| $ |
| 10.89 |
| $ |
| 9.81 |
| Market Value Per Share |
| $ |
| 9.30 |
| $ |
| 11.44 |
| (1) Ratios are for Commercial Bank . |
| Consolidated Statements of Income (unaudited): |
| Quarter Ended June 30, |
| Six Months Ended June 30, |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| Interest Income |
| $ |
| 6,279,754 |
| $ |
| 5,043,640 |
| $ |
| 12,355,813 |
| $ |
| 11,920,195 |
| Interest Expense |
| 1,740,142 |
| 585,202 |
| 3,125,557 |
| 1,117,064 |
| Net Interest Income |
| 4,539,612 |
| 4,458,438 |
| 9,230,256 |
| 10,803,131 |
| Provision for loan losses |
| (12,000 |
| ) |
| - |
| 109,000 |
| - |
| Non-interest income |
| 515,297 |
| 496,982 |
| 987,801 |
| 1,075,857 |
| Operating Expenses |
| 3,189,499 |
| 3,127,307 |
| 6,460,291 |
| 6,274,612 |
| Income before taxes |
| 1,877,410 |
| 1,828,113 |
| 3,648,766 |
| 5,604,376 |
| Income tax expense |
| 334,463 |
| 310,000 |
| 635,763 |
| 1,036,000 |
| Net Income |
| $ |
| 1,542,947 |
| $ |
| 1,518,113 |
| $ |
| 3,013,003 |
| $ |
| 4,568,376 |
| Net Income per share - diluted |
| $ |
| 0.39 |
| $ |
| 0.38 |
| $ |
| 0.76 |
| $ |
| 1.15 |
| Dividends declared |
| $ |
| 0.14 |
| $ |
| 0.14 |
| $ |
| 0.28 |
| $ |
| 0.28 |
| Consolidated Balance Sheets (unaudited): |
| June 30, |
| 2023 |
| 2022 |
| Assets |
| Cash and cash equivalents |
| $ |
| 39,832,080 |
| $ |
| 68,922,849 |
| Time deposits with other banks |
| 4,482,000 |
| 11,450,000 |
| Securities |
| 92,532,540 |
| 103,209,588 |
| Loans |
| 421,267,286 |
| 412,037,495 |
| Allowance for loan losses |
| (3,868,740 |
| ) |
| (3,831,495 |
| ) |
| Loans, net |
| 417,398,546 |
| 408,206,000 |
| Premises and equipment, net |
| 8,624,817 |
| 8,595,466 |
| Other assets |
| 25,075,126 |
| 24,602,640 |
| Total Assets |
| $ |
| 587,945,109 |
| $ |
| 624,986,543 |
| Liabilities |
| Deposits |
| $ |
| 508,939,164 |
| $ |
| 545,892,457 |
| FHLB borrowings |
| 19,000,000 |
| 24,000,000 |
| Trust preferred |
| 13,403,000 |
| 13,403,000 |
| Other liabilities |
| 3,422,503 |
| 2,792,569 |
| Total Liabilities |
| 544,764,667 |
| 586,088,026 |
| Equity |
| Total Equity |
| 43,180,442 |
| 38,898,517 |
| Total Liabilities and Equity |
| $ |
| 587,945,109 |
| $ |
| 624,986,543 |
Contact:
Kevin A. Twardy
CFO
989-875-5528