Commercial National Financial Corporation Reports 1st Quarter 2023 Earnings
04/26/2023 - 06:00 AM
ITHACA, Mich., April 26, 2023 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced first quarter 2023 net income of $1,470,000, or $.37 per share compared to first quarter 2022 net income of $3,050,000, or $.77 per share. Return on Equity (ROE) was 14.40% for the first quarter of 2023 compared to 26.26% for the first quarter of 2022.
For the first quarter of 2023, net interest income decreased by $1.65 million , or 26.1% compared to the first quarter of 2022 primarily due to substantially lower Paycheck Protection Program (PPP) loan fee accretion by approximately $2.5 million ($.50 per share, after taxes). When excluding PPP loan fee accretion, net interest income increased by $866,000, or 22.7% primarily due to an increase in net interest margin. Total loans, excluding PPP loans, increased $16.3 million , or 4% when comparing March 31, 2023 to March 31, 2022. The provision for credit losses expense increased from zero to $121,000 primarily due to general reserves being added corresponding to loan growth during the first quarter of 2023 as required by the new credit losses accounting standard adopted January 1, 2023. Non-interest income decreased by $106,000, or 18.4% primarily due to lower miscellaneous income. Operating expenses increased by $123,000, or 3.9% primarily due to higher wages and miscellaneous expense.
Total assets were $600.9 million at March 31, 2023 compared to $627.4 million at March 31, 2022. The decrease was primarily due to the repayment of $18.6 million of brokered certificates of deposit and $15.4 million of Federal Home Loan Bank borrowings with excess liquidity. At March 31, 2023, PPP loans outstanding were approximately $.5 million compared to $3.8 million at March 31, 2022. 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 March 31, 2023 2022 Return on Equity (ROE) 14.40 % 26.26 % Return on Assets (ROA) 0.98 % 1.99 % Net Interest Margin 3.28 % 4.37 % March 31, 2023 2022 Non-performing Assets Ratio 0.13 % 0.70 % Tier 1 Leverage Capital(1) 9.04 % 8.59 % Total Risk-based Capital(1) 15.06 % 14.94 % Book Value Per Share $ 10.66 $ 11.51 Market Value Per Share $ 10.75 $ 13.30 (1) Ratios are for Commercial Bank.
Consolidated Statements of Income (unaudited): Quarter Ended March 31, 2023 2022 Interest Income $ 6,076,059 $ 6,876,555 Interest Expense 1,385,415 531,862 Net Interest Income 4,690,644 6,344,693 Provision for credit losses 121,000 - Non-interest income 472,504 578,875 Operating Expenses 3,270,792 3,147,305 Income before taxes 1,771,356 3,776,263 Income tax expense 301,300 726,000 Net Income $ 1,470,056 $ 3,050,263 Net Income per share - diluted $ 0.37 $ 0.77 Dividends declared $ 0.14 $ 0.14
Consolidated Balance Sheets (unaudited): March 31, 2023 2022 Assets Cash and cash equivalents $ 45,031,302 $ 67,543,910 Time deposits with other banks 4,482,000 14,380,000 Securities 98,252,929 108,533,063 Loans 423,195,140 410,228,551 Allowance for credit losses (3,881,282 ) (3,831,809 ) Loans, net 419,313,858 406,396,742 Premises and equipment, net 8,718,868 8,377,785 Other assets 25,101,915 22,165,771 Total Assets $ 600,900,872 $ 627,397,271 Liabilities Deposits $ 523,072,519 $ 531,049,989 FHLB borrowings 19,000,000 34,400,000 Trust preferred 13,403,000 13,403,000 Other liabilities 3,170,449 2,886,462 Total Liabilities 558,645,968 581,739,451 Equity Total Equity 42,254,904 45,657,820 Total Liabilities and Equity $ 600,900,872 $ 627,397,271
Contact: Kevin A. Twardy CFO and COO 989-875-5528
Commercial National Financial Corp (MI)
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CEFC Stock Data
Industry
Commercial Banking
Sector
Finance and Insurance
Tags
Regional Banks, Finance, Finance and Insurance, Commercial Banking
About CEFC
commercial national financial corporation operates as the holding company for commercial bank that provides various banking products and services to individuals, agricultural businesses, commercial businesses, and light industries in michigan. it accepts various deposit products, including checking and savings accounts, individual retirement accounts, certificates of deposit, and health savings accounts. the company also offers personal loan products, such as automobile loans, recreational vehicle loans, personal lines of credit, and unsecured term loans, as well as home equity loans and mortgage loans; and business loans, including secured lines of credit, business equity line of credit, sba loans, equipment loans, real estate loans, vehicle loans, term loans, usda loan programs, and capital access loan programs. it also provides other services comprising business visa check cards, debit and atm cards, business statement savings, business certificates of deposit, merchant bankcard ref