Commercial National Financial : 2022 Third Quarter Brochure

COMMERCIAL NATIONAL FINANCIAL CORPORATION

Board of Directors

Kevin D. Collison

Heather M. Cook Fisette

Timothy J. Coscarelly

Aaron L. Davis

Christopher E. Goggin

Brent J. Hardman

Richard S. Prestage

Loren R. Roslund

Jeffrey A. Stahl

Visit www.commercial-bank.com to view the latest consolidated Annual Report, news releases and other information about CEFC and Commercial Bank.

www.commercial-bank.com

THIRD QUARTER REPORT

SEPTEMBER 30, 2022

COMMERCIAL NATIONAL FINANCIAL CORPORATION

101 N. PINE RIVER ST.

P.O. BOX 280

ITHACA, MICHIGAN 48847

989-875-4144

To Our Shareholders,

Net income for the third quarter of 2022 was $1,601,000, or $.40 per share compared to third quarter 2021 net income of $1,478,000, or $.37 per share. Return on Equity (ROE) was 15.72% for the third quarter of 2022 compared to 13.35% for the third quarter of 2021.

For the third quarter of 2022, net interest income increased $458,000, or 11.3% compared to the third quarter of 2021 primarily due to higher market interest rates and interest-earning assets. Total loans, excluding Paycheck Protection Program

1. loans, increased $21.3 million, or 5.4% when comparing September 30, 2022 to September 30, 2021. Non-interest income increased by $35,000, or 5.8% primarily due to higher debit card interchange fees. Operating expenses increased by $138,000, or 4.4% primarily due to higher wages and benefits expense.
   Total assets were $613.1 million at September 30, 2022 compared to $591.8 million at September 30, 2021. The increase was primarily due to core deposit growth, partially offset by lower wholesale borrowings. At September 30, 2022, PPP loans outstanding were approximately $1.0 million compared to $54.4 million at September 30, 2021.
   As always, please feel free to contact me with any questions or concerns.

COMMERCIAL NATIONAL FINANCIAL

CORPORATION

		9/30/2022		9/30/2021
		QUARTER ENDING
Basic Earnings	$	0.40	$	0.37
Diluted Earnings	$	0.40	$	0.37
Return on Average Equity		15.72%		13.35%
Return on Average Assets		1.02%		1.00%
Net Interest Margin		3.02%		2.90%
		YEAR TO DATE
Basic Earnings	$	1.56	$	1.16
Diluted Earnings	$	1.56	$	1.16
Return on Average Equity		19.00%		14.28%
Return on Average Assets		1.32%		1.07%
Cash Dividends Paid	$	0.42	$	0.42
Book Value	$	9.39	$	11.07
Market Price	$	10.75	$	10.58
Dividend Yield		5.21%		5.29%
Allowance for Loan Loss to Total		0.97%		0.91%
Loans
Net Interest Margin		3.45%		3.07%

INVESTMENT BROKERS

Stifel, Nicolaus & Company, Incorporated

Kyle Travis- Financial Advisor

1-616-224-1559

Products & services are offered through Stifel. Stifel is not affiliated

with Commercial Bank. Member SIPC/NYSE

D.A. Davidson & Co.

Nick Bicking	[e-mail]	[phone]
Tom Dooley	[e-mail]	[phone]

Brokerage & Advisory services offered through D.A. Davidson & Co. are

not affiliated with Commercial Bank.

Member SIPC

Kevin D. Collison	Stock Symbol: CEFC
President and CEO

														President & CEO
		9/30/2022		9/30/2021			QUARTER ENDING		YEAR TO DATE	Kevin D. Collison
Assets		(Unaudited)		(Unaudited)	Interest Income		9/30/2022		9/30/2021		9/30/2022		9/30/2021	Executive Vice President & Chief Lending Officer
Cash and due from banks	$	53,518,943	$	35,061,247		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)	Andrew P. Shafley
Federal funds sold		-		820,000	Interest & fees on loans	$	4,411,341	$	4,380,281	$	15,134,049	$	13,487,847	Chief Financial Officer & Chief Operating Officer
Total cash & cash equivalents		53,518,943		35,881,247	Interest & dividends on securities		556,646		148,995		1,445,482		460,207	Kevin A. Twardy
Time deposits in banks		9,458,000		20,854,000	Interest on deposits in banks		341,244		127,811		649,165		372,423	First Vice President
Securities		102,600,641		59,058,059	Interest on federal funds sold		1,949		10		2,679		20	Matthew O. Fletcher
Loans		416,905,083		449,036,166	Total Interest Income		5,311,180		4,657,097		17,231,375		14,320,497	Vice Presidents
Less: Allowance for loan losses		(4,055,878)		(4,086,664)										Garth W. Anderson	Paul D. Harger
Net loans		412,849,205		444,949,502	Interest Expense									Corey S. Bailey	Jayme L. Kosal
					Interest on deposits		554,362		380,330		1,247,075		1,205,694	Kathleen R. Baker	Michael D. Miller
Bank premises & equipment		8,853,644		8,311,175	Interest on FHLB borrowings		102,202		142,822		360,255		430,064	Jason D. Beebe	Benjamin Z. Ogle
Other assets		25,825,343		22,785,377	Trust Preferred (net)		129,652		66,647		295,936		202,559	Chelsey A. Foster	Heather A. Schaeffer
Total Assets	$	613,105,776	$	591,839,360	Interest on other borrowings		13		-		27		4	Trisha A. Gough	Linda M. Vaughn
Liabilities					Total Interest Expense		786,229		589,799		1,903,293		1,838,321	Jacky Halliwill	Jessica L. Wright
Deposits														Gregory R. Hansen
Non-interest bearing	$	134,239,408	$	120,068,143	Net Interest Income		4,524,951		4,067,298		15,328,082		12,482,176	Assistant Vice Presidents
Interest bearing		406,010,898		377,702,902	Provision for loan losses		-		(225,000)		-		(225,000)	Sara F. Bajema	Roger K. Merritt
Total deposits		540,250,306		497,771,045	Net Interest Income after Provision		4,524,951		4,292,298		15,328,082		12,707,176	Melanie S. Baxter	Heidi L. Miller
														Kimberly S. Campbell	Jamie L. Ogle
				-	Non-interest Income									Dakota T. Curns	Denise L. Reese
Federal Home Loan Bank borrowings		19,000,000		34,400,000	Service charges and fees		282,406		251,156		805,045		731,171	Nate R. Kirk, Jr.	Courtney A. Samson
Trust Preferred		13,403,000		13,403,000	Other income		358,768		354,643		911,986		1,060,543	Tammy L. McCollum
Accrued expenses and other liabilities		3,210,208		2,371,146	Total Other Income		641,174		605,799		1,717,031		1,791,714		Officers
					Operating Expenses									Tricia C. Frost	Kayla M. Grzeskowiak
Total Liabilities		575,863,514		547,945,191
Shareholders' Equity					Salaries & employee benefits		2,073,991		1,853,545		5,932,338		5,215,657
Common stock & paid-in-capital		20,517,672		20,517,671	Occupancy & equipment expense		568,821		610,493		1,720,248		1,765,951	989-875-4144	517-337-5000	989-236-7236
Accumulated other comprehensive income														Alma- Wright Ave.	Greenville	St. Louis
(loss), net of tax		(11,929,943)		435,710	Other expenses		601,142		642,055		1,865,980		1,903,943	989-463-3901	616-754-7166	989-681-5738
					Total Operating Expenses		3,243,954		3,106,093		9,518,566		8,885,551	Mason- Jefferson St.	Mason- Cedar St.	Hastings
Retained earnings		28,654,533		22,940,788	Income Before Income Taxes									517-676-0500	517-676-0515	269-945-9561
						1,922,171		1,792,004		7,526,547		5,613,339	*Alma- N. State St.		**Grand Rapids
Total Shareholders' Equity		37,242,262		43,894,169	Income Tax Expense		321,000		314,000		1,357,000		1,012,000	989-463-2185		616-405-4626
					Net Income									*Loan operations center only
Total Liabilities & Shareholders' Equity	$	613,105,776	$	591,839,360	$	1,601,171	$	1,478,004	$	6,169,547	$	4,601,339	**Loan production office only