Commercial National Financial Corporation Reports 4th Quarter 2025 Results

Rhea-AI Summary

Commercial National Financial Corporation (OTCID: CEFC) reported Q4 2025 net income of $1,784,000 or $0.45 per share versus Q4 2024 net income of $1,882,000 or $0.47 per share. Return on equity fell to 12.64% from 14.73%. Net interest income rose $320,000 (6.5%) as interest expense fell; non-interest income declined $218,000 while operating expenses rose $150,000. Total assets were $554.2M and deposits declined $27M; loans fell 6.1% to $371.3M. Non-performing assets improved to 0.17% and Commercial Bank remains well capitalized. Book value per share was $14.30 and market value per share was $13.65.

Positive

• Book value per share +12.3% YoY to $14.30
• Market value per share +38.6% YoY to $13.65
• Total equity +11.4% YoY to $56.28M
• Year-to-date net income +12.8% to $6.61M
• Interest expense down 29.2% QoQ to $1.25M
• Non-performing assets ratio improved to 0.17%

Negative

• Quarterly ROE down 14.2% YoY to 12.64%
• Non-interest income down 30.8% QoQ to $489,029

News Market Reaction – CEFC

+2.41%

1 alert

+2.41% News Effect

On the day this news was published, CEFC gained 2.41%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

ITHACA, Mich., Jan. 22, 2026 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (OTCID: CEFC) reported net income for the fourth quarter of 2025 of $1,784,000 or $0.45 per share compared to fourth quarter 2024 net income of $1,882,000 or $0.47 per share. Return on Equity was 12.64% for the fourth quarter of 2025 compared to 14.73% for the fourth quarter of 2024.

Net interest income for the fourth quarter of 2025 increased by $320,000 or 6.5% compared to the respective 2024 period. Interest income decreased by $196,000, mainly due to a decrease in loans. Interest expense decreased by $516,000, mainly due to a decrease in funding costs. Non-interest income decreased by $218,000, while operating expenses increased by $150,000, which was mainly due to higher wages and benefits expense.

Total assets were $554 million as of December 31, 2025 compared to $567 million as of December 31, 2024. Total deposits decreased by $27 million, which consisted of a decrease of $15 million in core deposits and $12 million in brokered deposits, which were replaced with borrowings from the Federal Home Loan Bank. While total loans decreased by $24 million or 6.1% due to the high interest rate environment and early loan payoffs, loan quality remained strong with a non-performing assets ratio of 0.17%. Additionally, CEFC’s wholly owned subsidiary, Commercial Bank, remains “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
	Dec 31, 2025				Dec 31, 2024				Dec 31, 2025				Dec 31, 2024
Return on Equity		12.64	%			14.73	%			12.44	%			12.04	%
Return on Assets		1.28	%			1.31	%			1.19	%			1.02	%
Net Interest Margin		4.04	%			3.66	%			3.87	%			3.44	%
	Dec 31, 2025				Dec 31, 2024
Non-Performing Assets Ratio		0.17	%			0.28	%
Tier 1 Leverage Capital Ratio(1)		10.88	%			10.32	%
Total Risk-Based Capital Ratio(1)		18.30	%			16.99	%
Book Value Per Share	$	14.30			$	12.74
Market Value Per Share	$	13.65			$	9.85
(1) Ratios are for Commercial Bank
Consolidated Statements of Income (unaudited):
	Quarter Ended								Year to Date
	Dec 31, 2025				Dec 31, 2024				Dec 31, 2025				Dec 31, 2024
Interest Income	$	6,496,798			$	6,692,617			$	26,081,644			$	26,762,188
Interest Expense		1,248,928				1,764,560				5,879,214				8,087,045
Net Interest Income		5,247,870				4,928,057				20,202,430				18,675,143
Provision for credit losses		(19,303	)			(55,008	)			(75,757	)			(93,980	)
Non-interest income		489,029				706,790				2,068,511				2,407,386
Operating Expenses		3,583,029				3,433,219				14,292,180				14,102,164
Income before taxes		2,173,173				2,256,636				8,054,518				7,074,345
Income tax expense		389,294				374,998				1,443,269				1,211,078
Net Income	$	1,783,879			$	1,881,638			$	6,611,249			$	5,863,267
Net Income per share - diluted	$	0.45			$	0.47			$	1.67			$	1.48
Dividends declared	$	0.14			$	0.14			$	0.56			$	0.56
Consolidated Balance Sheets (unaudited):
	Dec 31, 2025				Dec 31, 2024
Assets
Cash and cash equivalents	$	57,373,635			$	55,588,156
Time deposits with other banks		-				1,743,000
Securities		94,346,865				82,075,403
Loans		371,327,999				395,651,055
Allowance for credit losses		(3,385,810	)			(3,482,203	)
Loans, net		367,942,189				392,168,852
Premises and equipment, net		9,617,442				10,037,771
Other assets		24,933,064				25,029,745
Total Assets	$	554,213,195			$	566,642,927
Liabilities
Deposits	$	471,503,354			$	498,507,449
FHLB borrowings		16,000,000				4,000,000
Trust preferred		7,310,000				10,310,000
Other liabilities		3,115,523				3,295,393
Total Liabilities		497,928,877				516,112,842
Equity
Total Equity		56,284,318				50,530,085
Total Liabilities and Equity	$	554,213,195			$	566,642,927

Contact:
Benjamin Ogle
CFO
989-875-5562

FAQ

What did CEFC report for Q4 2025 net income and EPS?

CEFC reported Q4 2025 net income of $1,784,000 or $0.45 per diluted share.

How did CEFC's capital and asset quality look at Dec 31, 2025?

Commercial Bank remained well capitalized with a Tier 1 leverage ratio of 10.88% and non-performing assets ratio of 0.17%.

What were CEFC's key balance sheet changes at year-end 2025?

Total assets were $554.2M, deposits fell by $27M, and loans decreased to $371.3M.

Did CEFC's interest income or expense change in Q4 2025?

Interest income fell by $196,000, while interest expense declined by $516,000, supporting a net interest income increase of $320,000.

How did CEFC's book value and market value per share change by Dec 31, 2025?

Book value per share was $14.30 (up ~12.3% YoY) and market value per share was $13.65 (up ~38.6% YoY).

What drove the decline in CEFC's Q4 2025 profitability metrics?

Q4 profitability was affected by a lower net income versus prior year, a drop in ROE to 12.64%, and a 30.8% fall in non-interest income.