Commercial National Financial Corporation Reports 4th Quarter 2021 Earnings

ITHACA, Mich., Jan. 31, 2022 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced fourth quarter 2021 net income of $1,765,000, or $.45 per share compared to fourth quarter 2020 net income of $1,237,000, or $.31 per share. Return on Equity (ROE) was 15.62% for the fourth quarter of 2021 compared to 11.91% for the fourth quarter of 2020.

For the fourth quarter of 2021, net interest income increased $590,000, or 15.1% compared to the fourth quarter of 2020 primarily due to higher accretion on Paycheck Protection Program (PPP) loans as well as from a higher average balance of interest-earning assets. Non-interest income decreased by $75,000, or 12.3% primarily due to lower miscellaneous income, partially offset by higher debit card interchange revenue. Operating expenses increased by $326,000 or 11.6% primarily due to higher compensation and benefits expense. During 2021, we hired additional commercial lending and treasury employees.

The provision for loan losses expense was negative $275,000 for the fourth quarter of 2021, compared to expense of $200,000 for the fourth quarter of 2020. The negative provision expense in the fourth quarter of 2021 was primarily due to improved economic conditions and lower allocations to classified loans as compared to the fourth quarter of 2020.

Total assets were $610.8 million at December 31, 2021 compared to $547.8 million at December 31, 2020. The increase was primarily due to core deposit growth, partially offset by lower wholesale borrowings. At December 31, 2021, Paycheck Protection Program loans outstanding were approximately $50 million compared to $31 million at December 31, 2020.

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 December 31,						Year Ended December 31,
		2021			2020			2021			2020
Return on Equity (ROE)		15.62%			11.91%			14.63%			10.82%
Return on Assets (ROA)		1.14%			0.90%			1.09%			0.81%
Net Interest Margin		3.11%			3.02%			3.10%			3.07%
	December 31,
		2021			2020
Non-performing Assets Ratio		0.72%			1.35%
Tier 1 Leverage Capital(1)		8.63%			8.99%
Total Risk-based Capital(1)		15.17%			15.50%
Book Value Per Share		$11.32			$10.42
Market Value Per Share		$13.00			$9.25
(1) Ratios are for Commercial Bank.		.			.

Consolidated Statements of Income (unaudited):
	Quarter Ended December 31,						Year Ended December 31,
		2021			2020			2021			2020
Interest Income	$	5,061,892		$	4,626,763		$	19,382,389		$	19,028,433
Interest Expense		567,963			722,502			2,406,284			3,507,989
Net Interest Income		4,493,929			3,904,261			16,976,105			15,520,444
Provision for loan losses		(275,000)			200,000			(500,000)			1,450,000
Non-interest income		531,784			606,595			2,323,498			2,216,653
Operating Expenses		3,137,945			2,812,374			12,023,496			11,063,677
Income before taxes		2,162,768			1,498,482			7,776,107			5,223,420
Income tax expense		398,000			261,500			1,410,000			859,000
Net Income	$	1,764,768		$	1,236,982		$	6,366,107		$	4,364,420
Net Income per share – diluted	$	0.45		$	0.31		$	1.61		$	1.10
Dividends declared	$	0.14		$	0.14		$	0.56		$	0.56

Consolidated Balance Sheets (unaudited):
	December 31,
		2021			2020
Assets
Cash and cash equivalents	$	28,713,832		$	42,773,240
Time deposits with other banks		20,854,000			24,337,000
Securities		81,934,068			45,738,432
Loans		451,571,794			409,106,744
Allowance for loan losses		(3,820,897)			(4,215,192)
Loans, net		447,750,897			404,891,552
Premises and equipment, net		8,479,525			8,148,851
Other assets		23,070,012			21,890,496
Total Assets	$	610,802,334		$	547,779,571
Liabilities
Deposits	$	515,058,691		$	450,901,065
Other borrowings		34,400,000			39,480,000
Trust preferred		13,403,000			13,403,000
Other liabilities		3,047,041			2,658,928
Total Liabilities		565,908,732			506,442,993
Equity
Total Equity		44,893,602			41,336,578
Total Liabilities and Equity	$	610,802,334		$	547,779,571

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