Commercial National Financial Corporation Reports 2nd Quarter 2025 Results
ITHACA, Mich., July 28, 2025 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (OTCID: CEFC) reported net income for the second quarter of 2025 of $1,607,000 or $0.41 per share compared to second quarter 2024 net income of $1,412,000 or $0.36 per share. Return on Equity was 12.36% for the second quarter of 2025 compared to 11.96% for the second quarter of 2024.
Net interest income for the second quarter of 2025 increased by $400,000 or 8.7% compared to the respective 2024 period. Interest income decreased by $168,000, mainly due to a decrease in loan balances. Interest expense decreased by $568,000, as deposit rates were reduced following the federal funds rate cuts during the end of 2024. Non-interest income decreased by $71,000 or 11.6%, primarily due to lower other miscellaneous income. Operating expenses increased by $40,000 or 1.1%.
Total assets were $552 million as of June 30, 2025 compared to $573 million as of June 30, 2024. The decrease in assets was mainly due to the repayment of wholesale funding and trust preferred debt. While total loans decreased by $28 million or 6.9% due to the high-interest rate environment and early loan payoffs, loan quality remained strong with a non-performing assets ratio of 0.27%. Additionally, CEFC’s wholly owned subsidiary, Commercial Bank, remains significantly above “well capitalized” for regulatory purposes.
CEFC announced a share repurchase program in May of 2025, which remains in effect indefinitely. CEFC may repurchase shares under the program at its discretion, taking into account factors such as the share price, market conditions, share availability, and other relevant considerations. There is no guarantee that any specific number of shares will be repurchased, and CEFC may modify, renew, suspend, or terminate the program at any time without prior notice. For further information about the stock repurchase program, please contact our primary market maker, Nick Bicking at D.A. Davidson & Co., at 614-710-7060.
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| Selected Financial Data (unaudited): | |||||||||||||||
| Quarter Ended | Year to Date | ||||||||||||||
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2025 | Jun 30, 2024 | ||||||||||||
| Return on Equity | 12.36 | % | 11.96 | % | 11.84 | % | 10.96 | % | |||||||
| Return on Assets | 1.16 | % | 0.98 | % | 1.09 | % | 0.89 | % | |||||||
| Net Interest Margin | 3.80 | % | 3.38 | % | 3.74 | % | 3.31 | % | |||||||
| Jun 30, 2025 | Jun 30, 2024 | ||||||||||||||
| Non-Performing Assets Ratio | 0.27 | % | 0.22 | % | |||||||||||
| Tier 1 Leverage Capital Ratio(1) | 10.63 | % | 9.98 | % | |||||||||||
| Total Risk-Based Capital Ratio(1) | 17.46 | % | 16.00 | % | |||||||||||
| Book Value Per Share | $ | 13.21 | $ | 12.16 | |||||||||||
| Market Value Per Share | $ | 10.50 | $ | 8.90 | |||||||||||
| (1) Ratios are for Commercial Bank | |||||||||||||||
| Consolidated Statements of Income (unaudited): | |||||||||||||||
| Quarter Ended | Year to Date | ||||||||||||||
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2025 | Jun 30, 2024 | ||||||||||||
| Interest Income | $ | 6,541,806 | $ | 6,709,614 | $ | 13,017,099 | $ | 13,325,088 | |||||||
| Interest Expense | 1,564,206 | 2,131,773 | 3,199,436 | 4,255,200 | |||||||||||
| Net Interest Income | 4,977,600 | 4,577,841 | 9,817,663 | 9,069,888 | |||||||||||
| Provision for credit losses | (34,213 | ) | (79,201 | ) | (34,213 | ) | (39,201 | ) | |||||||
| Non-interest income | 542,666 | 613,892 | 1,012,612 | 1,150,984 | |||||||||||
| Operating Expenses | 3,595,928 | 3,555,700 | 7,172,181 | 7,150,718 | |||||||||||
| Income before taxes | 1,958,551 | 1,715,234 | 3,692,307 | 3,109,355 | |||||||||||
| Income tax expense | 351,475 | 303,070 | 655,950 | 536,060 | |||||||||||
| Net Income | $ | 1,607,076 | $ | 1,412,164 | $ | 3,036,357 | $ | 2,573,295 | |||||||
| Net Income per share - diluted | $ | 0.41 | $ | 0.36 | $ | 0.77 | $ | 0.65 | |||||||
| Dividends declared | $ | 0.14 | $ | 0.14 | $ | 0.28 | $ | 0.28 | |||||||
| Consolidated Balance Sheets (unaudited): | |||||||
| Jun 30, 2025 | Jun 30, 2024 | ||||||
| Assets | |||||||
| Cash and cash equivalents | $ | 55,001,227 | $ | 47,039,228 | |||
| Time deposits with other banks | 1,494,000 | 1,992,000 | |||||
| Securities | 80,346,101 | 80,159,284 | |||||
| Loans | 383,769,712 | 412,197,881 | |||||
| Allowance for credit losses | (3,432,412 | ) | (3,528,389 | ) | |||
| Loans, net | 380,337,300 | 408,669,492 | |||||
| Premises and equipment, net | 9,858,626 | 9,920,094 | |||||
| Other assets | 25,056,597 | 24,949,807 | |||||
| Total Assets | $ | 552,093,851 | $ | 572,729,905 | |||
| Liabilities | |||||||
| Deposits | $ | 484,981,138 | $ | 501,929,583 | |||
| FHLB borrowings | 4,000,000 | 9,000,000 | |||||
| Trust preferred | 7,310,000 | 10,310,000 | |||||
| Other liabilities | 3,415,374 | 3,269,872 | |||||
| Total Liabilities | 499,706,512 | 524,509,455 | |||||
| Equity | |||||||
| Total Equity | 52,387,339 | 48,220,450 | |||||
| Total Liabilities and Equity | $ | 552,093,851 | $ | 572,729,905 | |||
Contact:
Benjamin Z. Ogle
CFO
989-875-5562
