Commercial National Financial Corporation Reports 3rd Quarter 2022 Earnings
Commercial National Financial Corporation (CEFC) reported a strong third quarter of 2022, with net income rising to $1,601,000 (or $0.40 per share) compared to $1,478,000 (or $0.37 per share) in 2021. The company's Return on Equity (ROE) increased to 15.72% from 13.35% year-over-year. Net interest income surged by 11.3% to $4,524,951, driven by higher market interest rates. Total loans rose by $21.3 million (5.4%) compared to the previous year. Total assets grew to $613.1 million, up from $591.8 million in 2021, reflecting solid core deposit growth.
- Net income increased to $1,601,000, up from $1,478,000 year-over-year.
- ROE improved to 15.72%, compared to 13.35% in Q3 2021.
- Net interest income climbed 11.3% to $4,524,951 due to higher market interest rates.
- Total loans increased by $21.3 million or 5.4% year-over-year.
- Operating expenses rose by $138,000, or 4.4%, primarily due to higher wages and benefits.
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ITHACA, Mich., Oct. 27, 2022 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced third quarter 2022 net income of
For the third quarter of 2022, net interest income increased
Total assets were
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
