Commercial National Financial Corporation Reports 3rd Quarter 2025 Results

Rhea-AI Summary

Commercial National Financial Corporation (OTCID: CEFC) reported third quarter 2025 net income of $1.79M ($0.45 diluted) versus $1.41M ($0.36) in Q3 2024. Return on equity rose to 13.35% from 11.32%. Net interest income was $5.14M, up on lower interest expense driven by reduced wholesale funding; interest income fell to $6.57M. Total assets were $547.7M, down from $574.3M, largely due to repayment of $24M in wholesale funding and trust preferred debt. Non-performing assets ratio remained low at 0.26%.

Positive

• Net income +27% YoY to $1.79M
• Diluted EPS +25% YoY to $0.45
• Return on equity 13.35% (up from 11.32%)
• Market value per share $12.10 (up from $9.03)
• Tier 1 capital ratio 10.86% and total risk-based 17.75%

Negative

• Total assets declined to $547.7M after $24M debt repayments
• Loans declined $30M (7.3%), reducing interest-earning assets

ITHACA, Mich., Oct. 24, 2025 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (OTCID: CEFC) reported net income for the third quarter of 2025 of $1,791,000 or $0.45 per share compared to third quarter 2024 net income of $1,408,000 or $0.36 per share. Return on Equity was 13.35% for the third quarter of 2025 compared to 11.32% for the third quarter of 2024.

Net interest income for the third quarter of 2025 increased by $460,000 or 9.8% compared to the respective 2024 period. Interest income decreased by $177,000, mainly due to a decrease in loans. Interest expense decreased by $636,000, mainly due to a decrease in wholesale funding and funding costs. Non-interest income increased by $17,000 or 3.1%. Operating expenses increased by $19,000 or 0.5%.

Total assets were $548 million as of September 30, 2025 compared to $574 million as of September 30, 2024. The decrease in assets was mainly due to the repayment of wholesale funding and trust preferred debt totaling $24 million. While total loans decreased by $30 million or 7.3% due to the high-interest rate environment and early loan payoffs, loan quality remained strong with a non-performing assets ratio of 0.26%. 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								Year to Date
	Sep 30, 2025				Sep 30, 2024				Sep 30, 2025			Sep 30, 2024
Return on Equity		13.35%				11.32%			12.36%			11.09%
Return on Assets		1.30%				0.98%			1.16%			0.92%
Net Interest Margin		3.97%				3.47%			3.82%			3.37%
	Sep 30, 2025				Sep 30, 2024
Non-Performing Assets Ratio		0.26%				0.21%
Tier 1 Leverage Capital Ratio(1)		10.86%				10.17%
Total Risk-Based Capital Ratio(1)		17.75%				16.35%
Book Value Per Share	$13.90				$12.80
Market Value Per Share	$12.10				$9.03
(1)Ratios are for Commercial Bank

Consolidated Statements of Income (unaudited):
	Quarter Ended							Year to Date
	Sep 30, 2025				Sep 30, 2024			Sep 30, 2025				Sep 30, 2024
Interest Income	$	6,567,747			$	6,744,483		$	19,584,846			$	20,069,571
Interest Expense		1,430,850				2,067,285			4,630,286				6,322,485
Net Interest Income		5,136,897				4,677,198			14,954,560				13,747,086
Provision for credit losses		(22,241	)			229			(56,454	)			(38,972	)
Non-interest income		566,870				549,612			1,579,482				1,700,596
Operating Expenses		3,536,970				3,518,227			10,709,151				10,668,945
Income before taxes		2,189,038				1,708,354			5,881,345				4,817,709
Income tax expense		398,025				300,020			1,053,975				836,080
Net Income	$	1,791,013			$	1,408,334		$	4,827,370			$	3,981,629
Net Income per share – diluted	$	0.45			$	0.36		$	1.22			$	1.00
Dividends declared	$	0.14			$	0.14		$	0.42			$	0.42

Consolidated Balance Sheets (unaudited):
	Sep 30, 2025				Sep 30, 2024
Assets
Cash and cash equivalents	$	50,432,608			$	55,606,415
Time deposits with other banks		1,494,000				1,992,000
Securities		87,151,048				77,226,328
Loans		377,670,851				407,594,529
Allowance for credit losses		(3,413,163	)			(3,528,332	)
Loans, net		374,257,688				404,066,197
Premises and equipment, net		9,732,492				10,092,279
Other assets		24,647,796				25,285,806
Total Assets	$	547,715,632			$	574,269,025
Liabilities
Deposits	$	481,103,001			$	505,613,266
FHLB borrowings		1,000,000				4,000,000
Trust preferred		7,310,000				10,310,000
Other liabilities		3,605,711				3,598,596
Total Liabilities		493,018,712				523,521,862
Equity
Total Equity		54,696,920				50,747,163
Total Liabilities and Equity	$	547,715,632			$	574,269,025

Contact:
Benjamin Z. Ogle
CFO
989-875-5562

FAQ

What were CEFC Q3 2025 net income and EPS?

CEFC reported Q3 2025 net income of $1.79M and diluted EPS of $0.45.

Why did CEFC total assets fall as of September 30, 2025?

Total assets fell to $547.7M largely due to repayment of $24M in wholesale funding and trust preferred debt.

How did CEFC's loan portfolio change in Q3 2025?

Loans declined by $30M (approximately 7.3%) versus September 30, 2024, amid a high-rate environment and early payoffs.

What capital ratios did Commercial Bank report at Sep 30, 2025 (CEFC)?

Commercial Bank reported a Tier 1 leverage ratio of 10.86% and a total risk-based capital ratio of 17.75%.

Did CEFC report changes in net interest income or margin in Q3 2025?

Net interest income was $5.14M; net interest margin was 3.97%, reflecting lower interest expense from reduced wholesale funding.