Commercial National Financial Corporation Reports 1st Quarter 2022 Earnings

ITHACA, Mich., April 29, 2022 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced first quarter 2022 net income of $3,050,000, or $.77 per share compared to first quarter 2021 net income of $1,712,000, or $.43 per share. Return on Equity (ROE) was 26.26% for the first quarter of 2022 compared to 16.42% for the first quarter of 2021.

For the first quarter of 2022, net interest income increased $2,002,000, or 46.1% compared to the first quarter of 2021 primarily due to significantly higher accretion on Paycheck Protection Program (PPP) loans. During the quarter, $46.2 million of PPP loans were forgiven by the Small Business Administration. At March 31, 2022, PPP loans outstanding were approximately $3.8 million compared to $60.4 million at March 31, 2021. Total loans, excluding PPP loans, increased $22 million, or 5.7% when comparing March 31, 2022 to March 31, 2021.

Noninterest income decreased by $4,000, or .7% primarily due to lower miscellaneous income, partially offset by higher debit card interchange revenue. Operating expenses increased by $323,000 or 11.5% primarily due to higher compensation and benefits expense associated with hiring additional lending and treasury team members.

Total assets were $627.4 million at March 31, 2022 compared to $569.8 million at March 31, 2021. The increase was primarily due to core deposit growth, partially offset by lower wholesale borrowings.

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 March 31,
		2022				2021
Return on Equity (ROE)		26.26	%			16.42	%
Return on Assets (ROA)		1.99	%			1.25	%
Net Interest Margin		4.37	%			3.35	%
	March 31,
		2022				2021
Non-performing Assets Ratio		0.70	%			1.09	%
Tier 1 Leverage Capital(1)		8.59	%			9.06	%
Total Risk-based Capital(1)		14.94	%			15.59	%
Book Value Per Share	$	11.51			$	10.68
Market Value Per Share	$	13.30			$	10.50
(1) Ratios are for Commercial Bank.	.				.
Consolidated Statements of Income (unaudited):
	Quarter Ended March 31,
		2022				2021
Interest Income	$	6,876,555			$	4,982,565
Interest Expense		531,862				639,874
Net Interest Income		6,344,693				4,342,691
Provision for loan losses		-				-
Non-interest income		578,875				582,683
Operating Expenses		3,147,305				2,823,852
Income before taxes		3,776,263				2,101,522
Income tax expense		726,000				390,000
Net Income	$	3,050,263			$	1,711,522
Net Income per share - diluted	$	0.77			$	0.43
Dividends declared	$	0.14			$	0.14
Consolidated Balance Sheets (unaudited):
	March 31,
		2022				2021
Assets
Cash and cash equivalents	$	67,543,910			$	29,060,961
Time deposits with other banks		14,380,000				22,097,000
Securities		108,533,063				46,981,725
Loans		410,228,551				444,836,860
Allowance for loan losses		(3,831,809	)			(4,256,978	)
Loans, net		406,396,742				440,579,882
Premises and equipment, net		8,377,785				8,087,637
Other assets		22,165,771				22,967,038
Total Assets	$	627,397,271			$	569,774,243
Liabilities
Deposits	$	531,049,989			$	475,090,235
Other borrowings		34,400,000				35,400,000
Trust preferred		13,403,000				13,403,000
Other liabilities		2,886,462				3,533,757
Total Liabilities		581,739,451				527,426,992
Equity
Total Equity		45,657,820				42,347,251
Total Liabilities and Equity	$	627,397,271			$	569,774,243

Contact:
Kevin A. Twardy
CFO and COO
989-875-5528