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


Source: Commercial National Financial Corporation

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