ITHACA, Mich., Oct. 27, 2022 (GLOBE NEWSWIRE) — Commercial National Financial Corporation (Pink Sheets: CEFC) today announced third quarter 2022 net income of $1,601,000, or $.40 per share compared to third quarter 2021 net income of $1,478,000, or $.37 per share. Return on Equity (ROE) was 15.72% for the third quarter of 2022 compared to 13.35% for the third quarter of 2021.
For the third quarter of 2022, net interest income increased $458,000, or 11.3% compared to the third quarter of 2021 primarily due to higher market interest rates and interest-earning assets. Total loans, excluding Paycheck Protection Program (PPP) loans, increased $21.3 million, or 5.4% when comparing September 30, 2022 to September 30, 2021. Non-interest income increased by $35,000, or 5.8% primarily due to higher debit card interchange fees. Operating expenses increased by $138,000, or 4.4% primarily due to higher wages and benefits expense.
Total assets were $613.1 million at September 30, 2022 compared to $591.8 million at September 30, 2021. The increase was primarily due to core deposit growth, partially offset by lower wholesale borrowings. At September 30, 2022, PPP loans outstanding were approximately $1.0 million compared to $54.4 million at September 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 September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Return on Equity (ROE) | 15.72 | % | 13.35 | % | 19.00 | % | 14.28 | % | ||||||||
| Return on Assets (ROA) | 1.02 | % | 1.00 | % | 1.32 | % | 1.07 | % | ||||||||
| Net Interest Margin | 3.02 | % | 2.90 | % | 3.45 | % | 3.07 | % | ||||||||
| September 30, | ||||||||||||||||
| 2022 | 2021 | |||||||||||||||
| Non-performing Assets Ratio | 0.11 | % | 0.74 | % | ||||||||||||
| Tier 1 Leverage Capital(1) | 8.59 | % | 8.83 | % | ||||||||||||
| Total Risk-based Capital(1) | 14.74 | % | 15.38 | % | ||||||||||||
| Book Value Per Share | $ | 9.39 | $ | 11.07 | ||||||||||||
| Market Value Per Share | $ | 10.75 | $ | 10.58 | ||||||||||||
| (1) Ratios are for Commercial Bank. | ||||||||||||||||
| Consolidated Statements of Income (unaudited): | ||||||||||||||||
| Quarter Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Interest Income | $ | 5,311,180 | $ | 4,657,097 | $ | 17,231,375 | $ | 14,320,497 | ||||||||
| Interest Expense | 786,229 | 589,799 | 1,903,293 | 1,838,321 | ||||||||||||
| Net Interest Income | 4,524,951 | 4,067,298 | 15,328,082 | 12,482,176 | ||||||||||||
| Provision for loan losses | – | (225,000 | ) | – | (225,000 | ) | ||||||||||
| Non-interest income | 641,174 | 605,799 | 1,717,031 | 1,791,714 | ||||||||||||
| Operating Expenses | 3,243,954 | 3,106,093 | 9,518,566 | 8,885,551 | ||||||||||||
| Income before taxes | 1,922,171 | 1,792,004 | 7,526,547 | 5,613,339 | ||||||||||||
| Income tax expense | 321,000 | 314,000 | 1,357,000 | 1,012,000 | ||||||||||||
| Net Income | $ | 1,601,171 | $ | 1,478,004 | $ | 6,169,547 | $ | 4,601,339 | ||||||||
| Net Income per share – diluted | $ | 0.40 | $ | 0.37 | $ | 1.56 | $ | 1.16 | ||||||||
| Dividends declared | $ | 0.14 | $ | 0.14 | $ | 0.42 | $ | 0.42 | ||||||||
| Consolidated Balance Sheets (unaudited): | ||||||||||||||||
| September 30, | ||||||||||||||||
| 2022 | 2021 | |||||||||||||||
| Assets | ||||||||||||||||
| Cash and cash equivalents | $ | 53,518,943 | $ | 35,881,247 | ||||||||||||
| Time deposits with other banks | 9,458,000 | 20,854,000 | ||||||||||||||
| Securities | 102,600,641 | 59,058,059 | ||||||||||||||
| Loans | 416,905,083 | 449,036,166 | ||||||||||||||
| Allowance for loan losses | (4,055,878 | ) | (4,086,664 | ) | ||||||||||||
| Loans, net | 412,849,205 | 444,949,502 | ||||||||||||||
| Premises and equipment, net | 8,853,644 | 8,311,175 | ||||||||||||||
| Other assets | 25,825,343 | 22,785,377 | ||||||||||||||
| Total Assets | $ | 613,105,776 | $ | 591,839,360 | ||||||||||||
| Liabilities | ||||||||||||||||
| Deposits | $ | 540,250,306 | $ | 497,771,045 | ||||||||||||
| FHLB borrowings | 19,000,000 | 34,400,000 | ||||||||||||||
| Trust preferred | 13,403,000 | 13,403,000 | ||||||||||||||
| Other liabilities | 3,210,208 | 2,371,146 | ||||||||||||||
| Total Liabilities | 575,863,514 | 547,945,191 | ||||||||||||||
| Equity | ||||||||||||||||
| Total Equity | 37,242,262 | 43,894,169 | ||||||||||||||
| Total Liabilities and Equity | $ | 613,105,776 | $ | 591,839,360 | ||||||||||||
Contact:
Kevin A. Twardy
CFO and COO
989-875-5528
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