Commercial National Financial Corporation Reports 1st Quarter 2025 Results
ITHACA, Mich., April 24, 2025 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) reported net income for the first quarter of 2025 of $1,429,000 or $0.36 per share compared to first quarter 2024 net income of $1,161,000 or $0.29 per share. Return on Equity (ROE) was 11.31% for the first quarter of 2025 compared to 9.95% for the first quarter of 2024.
Net interest income for the first quarter of 2025 increased by $348,000 or 7.7% compared to the respective 2024 period. Interest income decreased by $140,000, mainly due to a decrease in loan balances. Interest expense decreased by $488,000, as deposit rates were reduced following the federal funds rate cuts during the second half of 2024. Non-interest income decreased by $67,000 or 12.5%, primarily due to lower interchange income and other miscellaneous income. Operating expenses decreased by $19,000 or 0.5%.
Total assets were $571 million as of March 31, 2025 compared to $592 million as of March 31, 2024. The decrease in assets was due to the repayment of wholesale borrowings and trust preferred debt totaling $13 million, along with a 2.5% decrease in deposit balances. While total loans decreased by $24 million or 5.7% due to the high interest rate environment and early loan payoffs, loan quality remained strong with a non-performing assets ratio of 0.32%. Additionally, CEFC’s wholly owned subsidiary, Commercial Bank, remains significantly above “well capitalized” for regulatory purposes.
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| Selected Financial Data (unaudited): | |||||||
| Quarter Ended | |||||||
| Mar 31, 2025 | Mar 31, 2024 | ||||||
| Return on Equity (ROE) | 11.31 | % | 9.95 | % | |||
| Return on Assets (ROA) | 1.03 | % | 0.79 | % | |||
| Net Interest Margin | 3.68 | % | 3.25 | % | |||
| Mar 31, 2025 | Mar 31, 2024 | ||||||
| Non-Performing Assets Ratio | 0.32 | % | 0.20 | % | |||
| Tier 1 Leverage Capital Ratio(1) | 10.45 | % | 9.70 | % | |||
| Total Risk-Based Capital Ratio(1) | 17.18 | % | 15.81 | % | |||
| Book Value Per Share | $ | 13.14 | $ | 11.89 | |||
| Market Value Per Share | $ | 10.50 | $ | 9.15 | |||
| (1) Ratios are for Commercial Bank | |||||||
| Consolidated Statements of Income (unaudited): | |||||||
| Quarter Ended | |||||||
| Mar 31, 2025 | Mar 31, 2024 | ||||||
| Interest Income | $ | 6,475,293 | $ | 6,615,474 | |||
| Interest Expense | 1,635,230 | 2,123,427 | |||||
| Net Interest Income | 4,840,063 | 4,492,047 | |||||
| Provision for credit losses | - | 40,000 | |||||
| Non-interest income | 469,946 | 537,092 | |||||
| Operating Expenses | 3,576,253 | 3,595,018 | |||||
| Income before taxes | 1,733,756 | 1,394,121 | |||||
| Income tax expense | 304,475 | 232,990 | |||||
| Net Income | $ | 1,429,281 | $ | 1,161,131 | |||
| Net Income per share – diluted | $ | 0.36 | $ | 0.29 | |||
| Dividends declared | $ | 0.14 | $ | 0.14 | |||
| Consolidated Balance Sheets (unaudited): | |||||||
| Mar 31, 2025 | Mar 31, 2024 | ||||||
| Assets | |||||||
| Cash and cash equivalents | $ | 63,760,176 | $ | 59,248,093 | |||
| Time deposits with other banks | 1,743,000 | 1,992,000 | |||||
| Securities | 83,490,143 | 84,835,301 | |||||
| Loans | 390,575,608 | 414,380,652 | |||||
| Allowance for credit losses | (3,482,427 | ) | (3,609,455 | ) | |||
| Loans, net | 387,093,181 | 410,771,197 | |||||
| Premises and equipment, net | 9,901,597 | 9,655,198 | |||||
| Other assets | 24,663,342 | 25,205,622 | |||||
| Total Assets | $ | 570,651,439 | $ | 591,707,411 | |||
| Liabilities | |||||||
| Deposits | $ | 503,862,856 | $ | 516,760,150 | |||
| FHLB borrowings | 4,000,000 | 14,000,000 | |||||
| Trust preferred | 7,310,000 | 10,310,000 | |||||
| Other liabilities | 3,363,007 | 3,490,066 | |||||
| Total Liabilities | 518,535,863 | 544,560,216 | |||||
| Equity | |||||||
| Total Equity | 52,115,576 | 47,147,195 | |||||
| Total Liabilities and Equity | $ | 570,651,439 | $ | 591,707,411 | |||
Contact:
Benjamin Z. Ogle
CFO
989-875-5562
