Commercial National Financial Corporation Reports 3rd Quarter 2021 Earnings

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ITHACA, Mich., Oct. 29, 2021 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced third quarter 2021 net income of $1,478,000, or $.37 per share compared to third quarter 2020 net income of $1,177,000, or $.30 per share.

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Friday, October 29, 2021

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News, Pink, Income, Commercial National Financial, Annual report, GLOBE, Paycheck Protection Program, ROE, Treasury, Growth, Commercial bank, CEFC, Lithium, Bank

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ITHACA, MI, MICH

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COMMERCIAL NATIONAL FINANCIAL CORPORATION

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ITHACA, Mich., Oct. 29, 2021 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced third quarter 2021 net income of $1,478,000, or $.37 per share compared to third quarter 2020 net income of $1,177,000, or $.30 per share.
Return on Equity (ROE) was 13.35% for the third quarter of 2021 compared to 11.50% for the third quarter of 2020.
The provision for loan losses expense was negative $225,000 for the third quarter of 2021, compared to $300,000 for the third quarter of 2020.
Commercial National Financial Corporation operates through a single subsidiary bank, Commercial Bank.

ITHACA, Mich., Oct. 29, 2021 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced third quarter 2021 net income of $1,478,000, or $.37 per share compared to third quarter 2020 net income of $1,177,000, or $.30 per share. Return on Equity (ROE) was 13.35% for the third quarter of 2021 compared to 11.50% for the third quarter of 2020.

For the third quarter of 2021, net interest income increased $160,000, or 4.1% compared to the third quarter of 2020 primarily due to a higher average balance of interest-earning assets, partially offset by 11 basis points of lower net interest margin. Non-interest income increased by $39,000, or 6.9% primarily due to higher debit card fees. Operating expenses increased by $333,000, or 12% primarily due to the hiring of additional commercial lending and treasury employees as well as from professional fees related to our core data processing conversion that was completed in September.

The provision for loan losses expense was negative $225,000 for the third quarter of 2021, compared to $300,000 for the third quarter of 2020. The negative provision expense in the third quarter of 2021 was primarily due to significantly improved economic conditions and lower allocations to classified loans as compared to the third quarter of 2020.

Total assets were $591.8 million at September 30, 2021 compared to $548.1 million at September 30, 2020. The increase was primarily due to core deposit growth, partially offset by lower wholesale borrowings. At September 30, 2021, Paycheck Protection Program loans outstanding were approximately $54.4 million compared to $32.2 million at September 30, 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 September 30,						Nine Months Ended September 30,
		2021			2020			2021			2020
Return on Equity (ROE)		13.35	%		11.50	%		14.28	%		10.45	%
Return on Assets (ROA)		1.00	%		0.85	%		1.07	%		0.78	%
Net Interest Margin		2.90	%		3.01	%		3.07	%		3.09	%

	September 30,
		2021			2020
Non-performing Assets Ratio		0.74	%		0.77	%
Tier 1 Leverage Capital⁽¹⁾		8.83	%		8.84	%
Total Risk-based Capital⁽¹⁾		15.38	%		15.39	%
Book Value Per Share	$	11.07		$	10.27
Market Value Per Share	$	10.58		$	9.11
⁽¹⁾Ratios are for Commercial Bank.	.			.

Consolidated Statements of Income (unaudited):
	Quarter Ended September 30,						Nine Months Ended September 30,
		2021			2020			2021			2020
Interest Income	$	4,657,097		$	4,715,503		$	14,320,497		$	14,401,670
Interest Expense		589,799			807,886			1,838,321			2,785,487
Net Interest Income		4,067,298			3,907,617			12,482,176			11,616,183
Provision for loan losses		(225,000	)		300,000			(225,000	)		1,250,000
Non-interest income		605,799			566,672			1,791,714			1,560,698
Operating Expenses		3,106,093			2,772,687			8,885,551			8,201,942
Income before taxes		1,792,004			1,401,602			5,613,339			3,724,939
Income tax expense		314,000			224,500			1,012,000			597,500
Net Income	$	1,478,004		$	1,177,102		$	4,601,339		$	3,127,439
Net Income per share - diluted	$	0.37		$	0.30		$	1.16		$	0.79
Dividends declared	$	0.14		$	0.14		$	0.42		$	0.42


Consolidated Balance Sheets (unaudited):
	September 30,
		2021			2020
Assets
Cash and cash equivalents	$	35,881,247		$	51,221,763
Time deposits with other banks		20,854,000			22,839,000
Securities		59,058,059			38,306,539
Loans		449,036,166			409,697,305
Allowance for loan losses		(4,086,664	)		(4,043,266	)
Loans, net		444,949,502			405,654,039
Premises and equipment, net		8,311,175			8,217,624
Other assets		22,785,377			21,884,842
Total Assets	$	591,839,360		$	548,123,807

Liabilities
Deposits	$	497,771,045		$	451,610,662
Other borrowings		34,400,000			39,480,000
Trust preferred		13,403,000			13,403,000
Other liabilities		2,371,146			2,904,766
Total Liabilities		547,945,191			507,398,428

Equity
Total Equity		43,894,169			40,725,379
Total Liabilities and Equity	$	591,839,360		$	548,123,807

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