CEFC - Commercial National Financial Corporation Reports 2nd Quarter 2022 Earnings
ITHACA, Mich., July 26, 2022 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced second quarter 2022 net income of $1,518,113, or $.38 per share compared to second quarter 2021 net income of $1,411,813, or $.36 per share. Return on Equity (ROE) was 14.23% for the second quarter of 2022 compared to 13.15% for the second quarter of 2021.
For the second quarter of 2022, net interest income increased $386,000, or 9.5% compared to the second quarter of 2021 primarily due to higher interest-earning assets as well as from the recovery of interest on non-accrual loan payoffs. Total loans, excluding Paycheck Protection Program (“PPP”) loans, increased $25.9 million, or 6.7% when comparing June 30, 2022 to June 30, 2021. Non-interest income decreased by $106,000, or 17.6% primarily due to lower miscellaneous income, partially offset by higher debit card fees. Operating expenses increased by $172,000, or 5.8% primarily due to higher wages and benefits expense.
Total assets were $625 million at June 30, 2022 compared to $587.6 million at June 30, 2021. The increase was primarily due to core deposit growth, partially offset by lower wholesale borrowings. At June 30, 2022, PPP loans outstanding were approximately $1.8 million compared to $60 million at June 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 June 30, |
| Six Months Ended June 30, |
| 2022 |
| 2021 |
| 2022 |
| 2021 |
| Return on Equity (ROE) |
| 14.23% |
| 13.15% |
| 20.51% |
| 14.76% |
| Return on Assets (ROA) |
| 0.97% |
| 0.97% |
| 1.47% |
| 1.11% |
| Net Interest Margin |
| 3.02% |
| 2.99% |
| 3.68% |
| 3.17% |
| June 30, |
| 2022 |
| 2021 |
| Non-performing Assets Ratio |
| 0.11% |
| 0.84% |
| Tier 1 Leverage Capital (1) |
| 8.49% |
| 8.79% |
| Total Risk-based Capital (1) |
| 14.84% |
| 15.89% |
| Book Value Per Share |
| $9.81 |
| $10.87 |
| Market Value Per Share |
| $11.44 |
| $10.75 |
| (1) Ratios are for Commercial Bank. |
| Consolidated Statements of Income (unaudited): |
| Quarter Ended June 30, |
| Six Months Ended June 30, |
| 2022 |
| 2021 |
| 2022 |
| 2021 |
| Interest Income |
| $ |
| 5,043,640 |
| $ |
| 4,680,835 |
| $ |
| 11,920,195 |
| $ |
| 9,663,400 |
| Interest Expense |
| 585,202 |
| 608,648 |
| 1,117,064 |
| 1,248,522 |
| Net Interest Income |
| 4,458,438 |
| 4,072,187 |
| 10,803,131 |
| 8,414,878 |
| Provision for loan losses |
| - |
| - |
| - |
| - |
| Non-interest income |
| 496,982 |
| 603,232 |
| 1,075,857 |
| 1,185,915 |
| Operating Expenses |
| 3,127,307 |
| 2,955,606 |
| 6,274,612 |
| 5,779,458 |
| Income before taxes |
| 1,828,113 |
| 1,719,813 |
| 5,604,376 |
| 3,821,335 |
| Income tax expense |
| 310,000 |
| 308,000 |
| 1,036,000 |
| 698,000 |
| Net Income |
| $ |
| 1,518,113 |
| $ |
| 1,411,813 |
| $ |
| 4,568,376 |
| $ |
| 3,123,335 |
| Net Income per share - diluted |
| $ |
| 0.38 |
| $ |
| 0.36 |
| $ |
| 1.15 |
| $ |
| 0.79 |
| Dividends declared |
| $ |
| 0.14 |
| $ |
| 0.14 |
| $ |
| 0.28 |
| $ |
| 0.28 |
| Consolidated Balance Sheets (unaudited): |
| June 30, |
| 2022 |
| 2021 |
| Assets |
| Cash and cash equivalents |
| $ |
| 68,922,849 |
| $ |
| 51,343,114 |
| Time deposits with other banks |
| 11,450,000 |
| 20,854,000 |
| Securities |
| 103,209,588 |
| 44,822,995 |
| Loans |
| 412,037,495 |
| 444,406,884 |
| Allowance for loan losses |
| (3,831,495 |
| ) |
| (4,238,164 |
| ) |
| Loans, net |
| 408,206,000 |
| 440,168,720 |
| Premises and equipment, net |
| 8,595,466 |
| 8,134,522 |
| Other assets |
| 24,602,640 |
| 22,308,977 |
| Total Assets |
| $ |
| 624,986,543 |
| $ |
| 587,632,328 |
| Liabilities |
| Deposits |
| $ |
| 545,892,457 |
| $ |
| 492,885,149 |
| FHLB borrowings |
| 24,000,000 |
| 35,400,000 |
| Trust preferred |
| 13,403,000 |
| 13,403,000 |
| Other liabilities |
| 2,792,569 |
| 2,842,747 |
| Total Liabilities |
| 586,088,026 |
| 544,530,896 |
| Equity |
| Total Equity |
| 38,898,517 |
| 43,101,432 |
| Total Liabilities and Equity |
| $ |
| 624,986,543 |
| $ |
| 587,632,328 |
Contact:
Kevin A. Twardy
CFO and COO
989-875-5528