Commercial National Financial Corporation Reports 2nd Quarter 2025 Results

Rhea-AI Summary

Commercial National Financial Corporation (OTCID: CEFC) reported strong Q2 2025 financial results, with net income reaching $1.61 million ($0.41 per share), up from $1.41 million ($0.36 per share) in Q2 2024. The company achieved a Return on Equity of 12.36%, improving from 11.96% year-over-year.

Key highlights include an 8.7% increase in net interest income, strong loan quality with a non-performing assets ratio of 0.27%, and maintained "well capitalized" status for its Commercial Bank subsidiary. Total assets were $552 million, down from $573 million in 2024. The company also announced an ongoing share repurchase program initiated in May 2025.

Positive

• Net income increased to $1.61M (up 13.8% YoY)
• Net interest income grew by 8.7% compared to Q2 2024
• Return on Equity improved to 12.36% from 11.96%
• Strong loan quality with low non-performing assets ratio of 0.27%
• Book value per share increased to $13.21 from $12.16 YoY
• Interest expense decreased by $568,000 due to reduced deposit rates

Negative

• Total assets decreased by $21M year-over-year
• Total loans decreased by $28M (6.9%) due to high-interest rate environment
• Non-interest income decreased by 11.6%
• Operating expenses increased by 1.1%

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.

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								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

FAQ

What were CEFC's Q2 2025 earnings per share?

CEFC reported earnings of $0.41 per share in Q2 2025, compared to $0.36 per share in Q2 2024.

How did CEFC's loan portfolio perform in Q2 2025?

CEFC's total loans decreased by 6.9% to $383.8M, though loan quality remained strong with a non-performing assets ratio of 0.27%.

What is CEFC's new share repurchase program?

CEFC announced a share repurchase program in May 2025 that remains in effect indefinitely, with repurchases at the company's discretion based on factors like share price and market conditions.

How did CEFC's net interest income change in Q2 2025?

Net interest income increased by $400,000 or 8.7% compared to Q2 2024, primarily due to reduced interest expenses following federal funds rate cuts.

What is CEFC's current book value per share?

CEFC's book value per share as of June 30, 2025, was $13.21, up from $12.16 in the previous year.