Reports of the National Commercial Finance Company 1st

ITHACA, Michigan, April 29, 2022 (GLOBE NEWSWIRE) — Commercial National Financial Corporation (Pink Sheets: CEFC) today reported net income of $3,050,000 for the first quarter of 2022, or $0.77 per share , compared to net income of $1,712,000 for the first quarter of 2021, or $0.43 per share. Return on equity (ROE) was 26.26% for the first quarter of 2022, compared to 16.42% for the first quarter of 2021.

For the first quarter of 2022, net interest income increased by $2,002,000, or 46.1%, compared to the first quarter of 2021, mainly due to a significantly higher increase in protection program loans paychecks (PPP). During the quarter, $46.2 million in PPP loans were canceled by the Small Business Administration. As of March 31, 2022, PPP loans outstanding were approximately $3.8 million, compared to $60.4 million as of March 31, 2021. Total loans, excluding PPP loans, increased by $22 million, or 5.7%, comparing March 31, 2022 to March 31, 2021.

Non-interest revenue decreased by $4,000, or 0.7%, primarily due to lower miscellaneous revenue, partially offset by higher debit card interchange revenue. Operating expenses increased by $323,000 or 11.5% primarily due to higher compensation and benefits expenses associated with the hiring of additional members of the lending and treasury team.

Total assets were $627.4 million as of March 31, 2022, compared to $569.8 million as of March 31, 2021. The increase was primarily due to core deposit growth, partially offset by decline in wholesale borrowing.

Commercial National Financial Corporation operates through a single bank subsidiary, Commercial Bank. Visit www.commercial-bank.com for the latest consolidated annual report, press releases and other information about CEFC and Commercial Bank.

Selected financial data (unaudited):
	Quarter ended March 31
		2022			2021
Return on equity (ROE)		26.26	%		16.42	%
Return on assets (ROA)		1.99	%		1.25	%
Net interest margin		4.37	%		3.35	%

	March, 31st,
		2022			2021
Non-performing asset ratio		0.70	%		1.09	%
Tier 1 leverage capital⁽¹⁾		8.59	%		9.06	%
Total risk-based capital⁽¹⁾		14.94	%		15.59	%
Book value per share	$	11.51		$	10.68
Market value per share	$	1:30 p.m.		$	10.50
⁽¹⁾The ratios relate to the commercial bank.	.			.

Consolidated Statements of Income (unaudited):
	Quarter ended March 31
		2022			2021
interest income	$	6,876,555		$	4,982,565
Interest charges		531,862			639,874
Net interest income		6,344,693			4,342,691
Allowance for loan losses		–			–
Non-interest income		578 875			582 683
Functionnary costs		3,147,305			2,823,852
Income before taxes		3,776,263			2,101,522
income tax expense		726,000			390,000
Net revenue	$	3,050,263		$	1,711,522
Net earnings per share – diluted	$	0.77		$	0.43
Dividends declared	$	0.14		$	0.14


Consolidated balance sheets (unaudited):
	March, 31st,
		2022			2021
Assets
Cash and cash equivalents	$	67,543,910		$	29,060,961
Term deposits with other banks		14,380,000			22,097,000
Securities		108,533,063			46,981,725
Loans		410 228 551			444 836 860
Allowance for loan losses		(3,831,809	)		(4,256,978	)
Loans, net		406 396 742			440 579 882
Premises and equipment, net		8,377,785			8,087,637
other assets		22,165,771			22,967,038
Total assets	$	627 397 271		$	569 774 243

Passives
Deposits	$	531 049 989		$	475 090 235
Other loans		34,400,000			35,400,000
Favorite Trust		13,403,000			13,403,000
Other liabilities		2,886,462			3,533,757
Total responsibilities		581 739 451			527 426 992

Equity
Total equity		45,657,820			42,347,251
Total Liabilities and Equity	$	627 397 271		$	569 774 243