GlobeNewswire Inc | Apr 28, 2021 06:00AM EDT

April 28, 2021

ITHACA, Mich., April 28, 2021 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced first quarter 2021 net income of $1,712,000, or $.43 per share compared to first quarter 2020 net income of $803,000, or $.20 per share. Return on Equity (ROE) was 16.42% for the first quarter of 2021 compared to 8.23% for the first quarter of 2020.

For the first quarter of 2021, net interest income increased $583,000, or 15.5% compared to the first quarter of 2020 primarily due to accelerated accretion of deferred fees from Paycheck Protection Program (PPP) loan payoffs. These loans were authorized by the CARES Act approved by Congress in response to the Covid-19 pandemic. Non-interest income increased by $74,000, or 14.6% primarily due to higher debit card fees. Operating expenses increased by $2,000, or .08%.

The provision for loan losses expense was zero for the first quarter of 2021, compared to $500,000 for the first quarter of 2020. The provision expense in the first quarter of 2020 was primarily due to additional environmental factor allocations related to worsening economic conditions from the Covid-19 pandemic.

Total assets were $569.8 million at March 31, 2021 compared to $511.3 million at March 31, 2020. The increase was primarily due to $60.4 million of Paycheck Protection Program loans outstanding at March 31, 2021 compared to zero at March 31, 2020. Total loans of $444.8 million increased $56.9 million, or 14.7% 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 March 31, 2021 2020 Return on Equity (ROE) 16.42% 8.23% Return on Assets (ROA) 1.25% 0.64% Net Interest Margin 3.35% 3.19% March 31, 2021 2020 Non-performing Assets Ratio 1.09% 0.70% Tier 1 Leverage Capital^(1) 9.06% 9.37% Total Risk-based Capital^(1) 15.59% 14.23% Book Value Per Share $10.68 $9.94 Market Value Per Share $10.50 $8.40 ^(1) Ratios are for Commercial Bank. Consolidated Statements of Income (unaudited): Quarter Ended March 31, 2021 2020 Interest Income $ 4,982,565 $ 4,826,267 Interest Expense 639,874 1,066,451 Net Interest Income 4,342,691 3,759,816 Provision for loan losses - 500,000 Non-interest income 582,683 508,676 Operating Expenses 2,823,852 2,821,570 Income before taxes 2,101,522 946,922 Income tax expense 390,000 143,500 Net Income $ 1,711,522 $ 803,422 Net Income per share- diluted $ 0.43 $ 0.20 Dividends declared $ 0.14 $ 0.14 Consolidated Balance Sheets (unaudited): March 31, 2021 2020 Assets Cash and cash equivalents $ 29,060,961 $ 23,764,952 Time deposits with other banks 22,097,000 34,442,000 Securities 46,981,725 38,334,501 Loans 444,836,860 387,974,640 Allowance for loan losses (4,256,978 ) (3,255,076 )Loans, net 440,579,882 384,719,564 Premises and equipment, net 8,087,637 8,349,490 Other assets 22,967,038 21,713,027 Total Assets $ 569,774,243 $ 511,323,534 Liabilities Deposits $ 475,090,235 $ 396,667,495 Other borrowings 35,400,000 58,749,303 Trust preferred 13,403,000 13,403,000 Other liabilities 3,533,757 3,084,575 Total Liabilities 527,426,992 471,904,373 Equity Total Equity 42,347,251 39,419,161 Total Liabilities and Equity $ 569,774,243 $ 511,323,534

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