Commercial National Financial Corporation Reports 4th Quarter 2022 Earnings

ITHACA, Mich., Jan. 30, 2023 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced fourth quarter 2022 net income of $1,912,000, or $.48 per share compared to fourth quarter 2021 net income of $1,765,000, or $.45 per share.   Return on Equity (ROE) was 19.86% for the fourth quarter of 2022 compared to 15.62% for the fourth quarter of 2021.

For the fourth quarter of 2022, net interest income increased $595,000, or 13.2% compared to the fourth quarter of 2021 primarily due to higher market interest rates and the recovery of non-accrual loan interest. Total loans, excluding Paycheck Protection Program (PPP) loans, increased $9.2 million, or 2.3% when comparing December 31, 2022 to December 31, 2021. Non-interest income decreased by $41,000, or 7.7% primarily due to lower miscellaneous income. Operating expenses increased by $91,000, or 2.9% primarily due higher wages and miscellaneous expense.  

Total assets were $613.8 million at December 31, 2022 compared to $610.8 million at December 31, 2021. The increase was primarily due to core deposit growth, partially offset by lower wholesale borrowings. At December 31, 2022, PPP loans outstanding were approximately $569,000 compared to $50 million at December 31, 2021.

The Board of Directors recently appointed Daniel Walcutt to the Bank and Holding Company Boards. Daniel is the President, CEO and owner of Nielsen Commercial Construction, Inc. located in Holt, Michigan.

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,
		2022				2021				2022				2021
Return on Equity (ROE)		19.86	%			15.62	%			19.20	%			14.63	%
Return on Assets (ROA)		1.22	%			1.14	%			1.29	%			1.09	%
Net Interest Margin		3.41	%			3.11	%			3.44	%			3.10	%
	December 31,
		2022				2021
Non-performing Assets Ratio		0.11	%			0.72	%
Tier 1 Leverage Capital(1)		8.68	%			8.63	%
Total Risk-based Capital(1)		15.18	%			15.17	%
Book Value Per Share	$	9.91			$	11.32
Market Value Per Share	$	10.50			$	13.00
(1) Ratios are for Commercial Bank.
Consolidated Statements of Income (unaudited):
	Quarter Ended December 31,								Year Ended December 31,
		2022				2021				2022				2021
Interest Income	$	6,190,953			$	5,061,892			$	23,422,328			$	19,382,389
Interest Expense		1,101,926				567,963				3,005,219				2,406,284
Net Interest Income		5,089,027				4,493,929				20,417,109				16,976,105
Provision for loan losses		-				(275,000	)			-				(500,000	)
Non-interest income		490,764				531,784				2,207,795				2,323,498
Operating Expenses		3,229,000				3,137,945				12,747,566				12,023,496
Income before taxes		2,350,791				2,162,768				9,877,338				7,776,107
Income tax expense		439,000				398,000				1,796,000				1,410,000
Net Income	$	1,911,791			$	1,764,768			$	8,081,338			$	6,366,107
Net Income per share - diluted	$	0.48			$	0.45			$	2.04			$	1.61
Dividends declared	$	0.14			$	0.14			$	0.56			$	0.56
Consolidated Balance Sheets (unaudited):
	December 31,
		2022				2021
Assets
Cash and cash equivalents	$	61,071,786			$	28,713,832
Time deposits with other banks		8,960,000				20,854,000
Securities		101,705,429				81,934,068
Loans		411,293,661				451,571,794
Allowance for loan losses		(4,154,073	)			(3,820,897	)
Loans, net		407,139,588				447,750,897
Premises and equipment, net		8,795,376				8,479,525
Other assets		26,082,215				23,070,012
Total Assets	$	613,754,394			$	610,802,334
Liabilities
Deposits	$	538,732,322			$	515,058,691
FHLB borrowings		19,000,000				34,400,000
Trust preferred		13,403,000				13,403,000
Other liabilities		3,305,797				3,047,041
Total Liabilities		574,441,119				565,908,732
Equity
Total Equity		39,313,275				44,893,602
Total Liabilities and Equity	$	613,754,394			$	610,802,334

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