Commercial National Financial Corporation Reports 1st Quarter 2026 Results

Rhea-AI Summary

Commercial National Financial Corporation (OTCID: CEFC) reported Q1 2026 net income $1,676,903 or $0.43 per share, up from $1,429,281 or $0.36 in Q1 2025. Return on equity was 11.87%. Net interest income increased 6.2% to $5,141,630. Total assets were $565.0 million.

Loans declined by $26 million and were replaced by $26 million of securities; deposits fell by $17 million and FHLB borrowings rose to $11 million. Non-performing assets ratio improved to 0.14%. A share repurchase program remains in effect.

Positive

• Net income +17.3% YoY to $1,676,903
• Market value per share increased to $14.05 from $10.50 (+33.8%)
• Capital ratios: Tier 1 leverage 10.80%, total risk-based 18.60% (well capitalized)

Negative

• Loans declined $26.25M to $364.3M (loan portfolio contraction)
• Deposits decreased $16.87M to $487.0M, funding partly replaced by FHLB borrowings rising to $11.0M
• Operating expenses increased $73,000, mainly higher wages and benefits

News Market Reaction – CEFC

+2.11%

+2.11% Session close to close

In the Apr 24 session, CEFC gained 2.11%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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ITHACA, Mich., April 24, 2026 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (OTCID: CEFC) reported net income of $1,677,000 or $0.43 per share for the first quarter of 2026 compared to $1,429,000 or $0.36 per share for the first quarter of 2025. Return on Equity was 11.87% for the first quarter of 2026 compared to 11.31% for the first quarter of 2025.

Net interest income for the first quarter of 2026 increased by $302,000 or 6.2% compared to the respective 2025 period. Interest income decreased by $66,000, mainly due to a decrease in loans. Interest expense decreased by $368,000, mainly due to a decrease in funding costs. Non-interest income increased by $43,000, while operating expenses increased by $73,000, which was mainly due to higher wages and benefits expense.

Total assets were $565 million as of March 31, 2026 compared to $571 million as of March 31, 2025. Total securities increased by $26 million, replacing the $26 million decrease in total loans. While loans decreased due to the high interest rate environment and early loan payoffs, loan quality remained strong with a non-performing assets ratio of 0.14%. Total deposits decreased by $17 million and were partially replaced with borrowings from the Federal Home Loan Bank. Additionally, CEFC’s wholly owned subsidiary, Commercial Bank, remained “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.

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, 2026				Mar 31, 2025
Return on equity		11.87%				11.31%
Return on assets		1.22%				1.03%
Net interest margin		3.97%				3.68%
	Mar 31, 2026				Mar 31, 2025
Non-performing assets ratio		0.14%				0.32%
Tier 1 leverage capital ratio(1)		10.80%				10.45%
Total risk-based capital ratio(1)		18.60%				17.18%
Book value per share	$14.33				$13.14
Market value per share	$14.05				$10.50
Common shares outstanding		3,906,203				3,965,303
Weighted-average common shares outstanding		3,931,624				3,965,303
(1)Ratios are for Commercial Bank
Consolidated Statements of Income (unaudited):
	Quarter Ended
	Mar 31, 2026				Mar 31, 2025
Interest income	$	6,408,718			$	6,475,293
Interest expense		1,267,088				1,635,230
Net interest income		5,141,630				4,840,063
Provision for credit losses		(40,000	)			-
Non-interest income		513,303				469,946
Operating expenses		3,649,030				3,576,253
Income before taxes		2,045,903				1,733,756
Income tax expense		369,000				304,475
Net income	$	1,676,903			$	1,429,281
Basic earnings per share	$	0.43			$	0.36
Diluted earnings per share	$	0.43			$	0.36
Dividends declared	$	0.15			$	0.14
Consolidated Balance Sheets (unaudited):
	Mar 31, 2026				Mar 31, 2025
Assets
Cash and cash equivalents	$	60,282,184			$	63,760,176
Time deposits with other banks		-				1,743,000
Securities		109,087,871				83,490,143
Loans		364,324,269				390,575,608
Allowance for credit losses		(3,338,799	)			(3,482,427	)
Loans, net		360,985,470				387,093,181
Premises and equipment, net		9,737,884				9,901,597
Other assets		24,880,188				24,663,342
Total assets	$	564,973,597			$	570,651,439
Liabilities
Deposits	$	486,992,711			$	503,862,856
FHLB borrowings		11,000,000				4,000,000
Trust preferred		7,310,000				7,310,000
Other liabilities		3,684,251				3,363,007
Total liabilities		508,986,962				518,535,863
Equity
Total equity		55,986,635				52,115,576
Total liabilities and equity	$	564,973,597			$	570,651,439

Contact:
Benjamin Ogle
CFO
989-875-5562

FAQ

What were CEFC Q1 2026 earnings and EPS for Commercial National Financial Corporation?

CEFC reported Q1 2026 net income of $1,676,903, or $0.43 per share. According to the company, this compares with $1,429,281 or $0.36 per share in Q1 2025, reflecting higher income before taxes and a modest rise in expenses.

Why did CEFC loans fall and securities rise in Q1 2026 for CEFC (OTCID: CEFC)?

Loans fell by about $26 million and securities rose by the same amount. According to the company, the shift reflected early loan payoffs and a high interest rate environment leading to reallocation into securities.

How did CEFC fund the deposit decrease in Q1 2026 and what changed in borrowings?

Deposits decreased roughly $17 million; the bank increased FHLB borrowings to $11.0 million. According to the company, borrowings partially replaced lost deposit funding during the quarter.

What is CEFC's credit quality and non-performing assets ratio for Q1 2026?

CEFC reported a non-performing assets ratio of 0.14% for Q1 2026. According to the company, loan quality remained strong despite loan runoff and early payoffs.

Does CEFC have a share repurchase program and is it still active for CEFC stock?

Yes. CEFC announced a share repurchase program in May 2025 which remains in effect indefinitely. According to the company, repurchases are at management discretion and depend on market conditions and share availability.