Commercial National Financial Corporation Reports 1st Quarter 2025 Results

Rhea-AI Summary

Commercial National Financial (CEFC) has reported strong Q1 2025 financial results, with net income reaching $1,429,000 ($0.36 per share), up from $1,161,000 ($0.29 per share) in Q1 2024. The company's Return on Equity improved to 11.31% from 9.95% year-over-year.

Key financial metrics include:

• Net interest income increased by $348,000 (7.7%)
• Operating expenses decreased by $19,000 (0.5%)
• Total assets stood at $571 million, down from $592 million in 2024
• Non-performing assets ratio at 0.32%

While total loans decreased by $24 million (5.7%) due to high interest rates and early payoffs, the company's subsidiary Commercial Bank maintains a strong capital position, significantly above 'well capitalized' regulatory requirements. The bank's Total Risk-Based Capital Ratio improved to 17.18% from 15.81% year-over-year.

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.

Visit www.commercial-bank.com to view the latest news releases and other information about CEFC and Commercial Bank.

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

FAQ

What are CEFC's Q1 2025 earnings per share and how do they compare to Q1 2024?

CEFC reported earnings of $0.36 per share in Q1 2025, up from $0.29 per share in Q1 2024, representing a 24% increase.

How did CEFC's net interest income perform in Q1 2025?

Net interest income increased by $348,000 or 7.7% compared to Q1 2024, despite lower interest income, due to reduced deposit rates following federal funds rate cuts.

What caused the decrease in CEFC's total assets from Q1 2024 to Q1 2025?

Total assets decreased from $592M to $571M due to repayment of $13M in wholesale borrowings and trust preferred debt, along with a 2.5% decrease in deposit balances.

How strong is CEFC's loan quality as of Q1 2025?

CEFC maintains strong loan quality with a non-performing assets ratio of 0.32%, despite a 5.7% decrease in total loans.

What is CEFC's current Return on Equity (ROE) and how has it changed?

CEFC's ROE improved to 11.31% in Q1 2025 from 9.95% in Q1 2024, showing enhanced profitability.