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