GlobeNewswire Inc | Jan 28, 2021 06:00AM EST

January 28, 2021

ITHACA, Mich., Jan. 28, 2021 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced fourth quarter 2020 net income of $1,237,000, or $.31 per share compared to fourth quarter 2019 net income of $1,316,000, or $.33 per share. Return on Equity (ROE) was 11.91% for the fourth quarter of 2020 compared to 13.51% for the fourth quarter of 2019.

For the fourth quarter of 2020, net interest income increased $133,000, or 3.5% compared to the fourth quarter of 2019 primarily due to interest and accretion of fees from Paycheck Protection Program loans. These loans were authorized by the CARES Act approved by Congress in late March in response to the Covid-19 pandemic. Operating expenses increased by $59,000, or 2.1% primarily due to the absence of FDIC insurance expense small bank assessment credits that were received in the prior year.

The provision for loan losses expense was $200,000 for the fourth quarter of 2020, compared to none for the fourth quarter of 2019. The provision expense primarily relates to specific reserve allocations to pandemic-affected borrowers.

Total assets were $547.8 million at December 31, 2020 compared to $504.9 million at December 31, 2019. The increase was primarily due to $31.6 million of Paycheck Protection Program loans outstanding at December 31, 2020 compared to zero at December 31, 2019. Total loans of $409.1 million increased $23.4 million, or 6.1% year over year.

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, Twelve Months Ended December 31, 2020 2019 2020 2019 Return on 11.91 % 13.51 % 10.82 % 13.51 %Equity (ROE)Return on 0.90 % 1.02 % 0.81 % 0.97 %Assets (ROA)Net Interest 3.02 % 3.15 % 3.07 % 3.03 %Margin December 31, 2020 2019 Non-performing 1.35 % 0.70 % Assets RatioTier 1Leverage 8.99 % 9.26 % Capital^(1)TotalRisk-based 15.50 % 14.18 % Capital^(1)Book Value Per $ 10.42 $ 9.77 ShareMarket Value $ 9.25 $ 11.45 Per Share^(1)[Ratiosare for CommercialBank.] Consolidated Statements of Income (unaudited): Quarter Ended December 31, Twelve Months Ended December 31, 2020 2019 2020 2019 Interest $ 4,626,763 $ 4,958,167 $ 19,028,433 $ 20,060,797 IncomeInterest 722,502 1,186,712 3,507,989 5,371,110 ExpenseNet Interest 3,904,261 3,771,455 15,520,444 14,689,687 IncomeProvision for 200,000 - 1,450,000 - loan lossesNon-interest 606,595 612,663 2,216,653 2,510,428 incomeOperating 2,812,374 2,753,346 11,063,677 11,111,539 ExpensesIncome before 1,498,482 1,630,772 5,223,420 6,088,576 taxesIncome tax 261,500 314,500 859,000 1,070,000 expenseNet Income $ 1,236,982 $ 1,316,272 $ 4,364,420 $ 5,018,576 Net Income pershare? $ 0.31 $ 0.33 $ 1.10 $ 1.27 dilutedDividends $ 0.14 $ 0.13 $ 0.56 $ 0.52 declared Consolidated Balance Sheets (unaudited): December 31, 2020 2019 Assets Cash and cash $ 42,773,240 $ 21,807,616 equivalentsTime depositswith other 24,337,000 31,956,000 banksSecurities 45,738,432 38,214,458 Loans 409,106,743 385,691,917 Allowance for (4,215,192 ) (2,751,767 ) loan lossesLoans, net 404,891,551 382,940,150 Premises and 8,148,851 8,343,479 equipment, netOther assets 21,890,497 21,676,803 Total Assets $ 547,779,571 $ 504,938,506 Liabilities Deposits $ 450,901,065 $ 390,063,519 Other 39,480,000 59,501,813 borrowingsTrust 13,403,000 13,403,000 preferredOther 2,658,928 3,216,264 liabilitiesTotal 506,442,993 466,184,596 Liabilities Equity Total Equity 41,336,578 38,753,910 TotalLiabilities $ 547,779,571 $ 504,938,506 and Equity

Contact:Kevin A. TwardyCFO and COO989-875-5528