GlobeNewswire Inc | Oct 29, 2021 09:10AM EDT

October 29, 2021

ITHACA, Mich., Oct. 29, 2021 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced third quarter 2021 net income of $1,478,000, or $.37 per share compared to third quarter 2020 net income of $1,177,000, or $.30 per share. Return on Equity (ROE) was 13.35% for the third quarter of 2021 compared to 11.50% for the third quarter of 2020.

For the third quarter of 2021, net interest income increased $160,000, or 4.1% compared to the third quarter of 2020 primarily due to a higher average balance of interest-earning assets, partially offset by 11 basis points of lower net interest margin. Non-interest income increased by $39,000, or 6.9% primarily due to higher debit card fees. Operating expenses increased by $333,000, or 12% primarily due to the hiring of additional commercial lending and treasury employees as well as from professional fees related to our core data processing conversion that was completed in September.

The provision for loan losses expense was negative $225,000 for the third quarter of 2021, compared to $300,000 for the third quarter of 2020. The negative provision expense in the third quarter of 2021 was primarily due to significantly improved economic conditions and lower allocations to classified loans as compared to the third quarter of 2020.

Total assets were $591.8 million at September 30, 2021 compared to $548.1 million at September 30, 2020. The increase was primarily due to core deposit growth, partially offset by lower wholesale borrowings. At September 30, 2021, Paycheck Protection Program loans outstanding were approximately $54.4 million compared to $32.2 million at September 30, 2020.

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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Return on 13.35 % 11.50 % 14.28 % 10.45 %Equity (ROE)Return on 1.00 % 0.85 % 1.07 % 0.78 %Assets (ROA)Net Interest 2.90 % 3.01 % 3.07 % 3.09 %Margin September 30, 2021 2020 Non-performing 0.74 % 0.77 % Assets RatioTier 1Leverage 8.83 % 8.84 % Capital^(1)TotalRisk-based 15.38 % 15.39 % Capital^(1)Book Value Per $ 11.07 $ 10.27 ShareMarket Value $ 10.58 $ 9.11 Per Share^(1) Ratiosare for . . CommercialBank. Consolidated Statements of Income (unaudited): Quarter Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Interest $ 4,657,097 $ 4,715,503 $ 14,320,497 $ 14,401,670 IncomeInterest 589,799 807,886 1,838,321 2,785,487 ExpenseNet Interest 4,067,298 3,907,617 12,482,176 11,616,183 IncomeProvision for (225,000 ) 300,000 (225,000 ) 1,250,000 loan lossesNon-interest 605,799 566,672 1,791,714 1,560,698 incomeOperating 3,106,093 2,772,687 8,885,551 8,201,942 ExpensesIncome before 1,792,004 1,401,602 5,613,339 3,724,939 taxesIncome tax 314,000 224,500 1,012,000 597,500 expenseNet Income $ 1,478,004 $ 1,177,102 $ 4,601,339 $ 3,127,439 Net Income pershare - $ 0.37 $ 0.30 $ 1.16 $ 0.79 dilutedDividends $ 0.14 $ 0.14 $ 0.42 $ 0.42 declared Consolidated Balance Sheets (unaudited): September 30, 2021 2020 Assets Cash and cash $ 35,881,247 $ 51,221,763 equivalentsTime depositswith other 20,854,000 22,839,000 banksSecurities 59,058,059 38,306,539 Loans 449,036,166 409,697,305 Allowance for (4,086,664 ) (4,043,266 ) loan lossesLoans, net 444,949,502 405,654,039 Premises and 8,311,175 8,217,624 equipment, netOther assets 22,785,377 21,884,842 Total Assets $ 591,839,360 $ 548,123,807 Liabilities Deposits $ 497,771,045 $ 451,610,662 Other 34,400,000 39,480,000 borrowingsTrust 13,403,000 13,403,000 preferredOther 2,371,146 2,904,766 liabilitiesTotal 547,945,191 507,398,428 Liabilities Equity Total Equity 43,894,169 40,725,379 TotalLiabilities $ 591,839,360 $ 548,123,807 and Equity

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