Commercial National Reports 37% Third Quarter Earnings Increase

Rhea-AI Summary

Commercial National Financial (OTC Markets:CNAF) reported third quarter 2025 net income of $446,000 (EPS $0.16), up 37% from $325,000 (EPS $0.11) in Q3 2024. Nine‑month net income was $1.328 million (EPS $0.46) versus $1.205 million (EPS $0.42) year‑ago.

The Company reported a tax‑equivalent net interest margin of 3.65%, core deposits of 84.96% of total deposits, and strong capital ratios: Tier 1 25.29%, total risk‑based 25.68%, leverage 14.26% and CET1 25.29% at September 30, 2025. Total assets were $372.282 million.

Book capital reflected a temporary after‑tax accumulated other comprehensive loss from unrealized market depreciation in the securities available‑for‑sale portfolio. On August 19, 2025 the Company authorized a stock repurchase program for up to 143,048 shares (5%); 4,157 shares were repurchased through October 21, 2025 at an average price of $8.02.

Positive

• Net income +37% in Q3 2025 to $446,000
• Nine‑month net income of $1.328M (EPS $0.46)
• Capital ratios well above benchmarks: Tier 1 25.29%
• Core deposits comprised 84.96% of total deposits
• Authorized buyback: up to 143,048 shares (5%)

Negative

• After‑tax accumulated other comprehensive loss from securities AFS depreciation
• Securities portfolio adversely impacted by generationally elevated market interest rates

LATROBE, PA / ACCESS Newswire / October 22, 2025 / Commercial National Financial Corporation (OTC Markets:CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended September 30, 2025. The Company earned $446,000 (or $0.16 per average share outstanding) in the third quarter 2025 compared to $325,000 (or $0.11 per average share outstanding) in the third quarter of 2024. The Company earned $1,328,000 (or $0.46 per average share outstanding) for the nine-month period ended September 30, 2025 and $1,205,000 (or $0.42 per average share outstanding) for the nine-month period ended September 30, 2024.

The Company's third quarter-end 2025 tax equivalent net interest margin was 3.65%. Effective overhead cost containment was primarily attributable to more efficient staffing for operational continuity. Fully insured well diversified core deposits comprised 84.96% of total deposits which very favorably compares to national banking industry metrics. Asset quality remained exceptionally strong across-the-board. Capital adequacy and strength greatly exceeded major banking industry benchmarks. Tier one risk-based, total risk-based, leverage and common equity tier one capital ratios at September 30, 2025 were 25.29%, 25.68%, 14.26% and 25.29% respectively. Tier one capital was $56,277,000 and total risk-based capital was $57,142,000 while book capital reflected a temporary after-tax accumulated other comprehensive loss stemming from net unrealized securities available-for-sale market value depreciation. As with many other insured depository institutions nationwide, the Company's securities portfolio has been adversely impacted by generationally elevated market interest rates and yields.

On August 19, 2025 the Company announced that it had authorized a stock repurchase program for up to 143,048 shares of its common stock, representing 5% of shares currently outstanding. The Company has repurchased 4,157 shares of its common stock as of October 21, 2025, at an average price of $8.02 per share. The Company intends to conduct the repurchases on the open market, including by means of a trading plan adopted under SEC Rule 10b5-1, subject to market conditions and other factors. There is no guarantee as to the number of shares that the Company may ultimately repurchase. The Company may suspend or discontinue the program at any time.

Direct and beneficial ownership by executive officers and directors of the Company's outstanding shares totaled 504,607 shares, or 17.66% on October 21, 2025.

As disclosed each year in the Annual Report to Shareholders, on September 30, 2025, the Company employed 78 people in full-time and part-time positions. Thirty-four (34) employees are represented by the United Auto Workers, Local 1799. Of that bargaining unit total, thirty (31) employees are full-time and there are three (3) part-time employees. The Company has had unionized employees since 1972. In November 2023, the agreement between the Company and the bargaining unit was negotiated and subsequently ratified by the bargaining unit with an effective date of February 15, 2024. The labor agreement will expire in February 2029. The Commonwealth of Pennsylvania and the National Labor Relations Board both afford protection to the organized status of pre-existing collective bargaining units. The Company has been advised that bargaining unit status limits the Company's strategic options relative to those of non-unionized insured depository institutions. The Company continues to consider this as a factor in its strategic and capital management decisions.

The Company operates seven community banking facilities in Hempfield Township, Latrobe, Ligonier, Unity Township and West Newton, Pennsylvania and also maintains a commercial business development sales force throughout its entire market area. The Company operates an asset management and trust division of Commercial Bank & Trust of PA headquartered in Greensburg, Pennsylvania. Commercial Bank & Trust of PA also serves its customer base from an Internet banking site (www.cnbthebankonline.com) and an automated TouchTone Teller banking system.

Safe Harbor Statement

Forward-looking statements (statements which are not historical facts) in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as "may," "will," "to," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or "continue" or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. These statements are based on information currently available to the Company, and the Company assumes no obligation to update these statements as circumstances change. Investors are cautioned that all forward-looking statements involve risk and uncertainties, including changes in general economic and financial market conditions, unforeseen credit problems, and the Company's ability to execute its business plans. The actual results of future events could differ materially from those stated in any forward-looking statements herein.

Contract Information:

Wendy Piper
Commercial National Financial Corporation
724.539.3501
wpiper@cbthebank.com

COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(Dollars in thousands, except per share data)

		September 30, 2025				December 31, 2024				September 30, 2024
ASSETS
Cash and due from banks on demand		$	6,345			$	3,743			$	7,087
Interest bearing deposits with banks			3,507				1,322				2,917
Total cash and cash equivalents			9,852				5,065				10,004
Securities available for sale			155,422				156,076				163,738
Restricted investments in bank stock			1,367				1,671				1,712
Loans			174,166				181,452				185,519
Allowance for credit losses			(865	)			(865	)			(1,085	)
Net loans			173,301				180,587				184,434
Premises and equipment			2,824				2,790				2,834
Accrued interest receivable			2,543				2,202				2,546
Investment in Life Insurance			19,482				19,083				18,948
Other assets			7,491				7,381				6,067
Total assets		$	372,282			$	374,855			$	390,283
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing		$	156,054				145,735			$	157,196
Interest bearing			149,257				155,826				153,323
Total deposits			305,311				301,561				310,519
Short-term borrowings			28,746				38,665				39,697
Other liabilities			1,627				1,854				1,631
Total liabilities			335,684				342,080				351,847
Shareholders' equity:
Common stock, par value $2 per share; 10,000,000 shares authorized; 3,600,000 shares issued; 2,858,988 shares outstanding in 2025 and 2,860,953 shares outstanding in 2024
Common stock, par value $2 per share; 10,000,000 shares authorized; 3,600,000 shares issued; 2,858,988 shares outstanding in 2025 and 2,860,953 shares outstanding in 2024			7,200				7,200				7,200
Retained earnings			62,823				62,440				62,119
Accumulated other comprehensive loss			(20,865	)			(24,321	)			(18,339	)
Less treasury stock, at cost, 741,012 shares in 2025 and 739,047 in 2024			(12,560	)			(12,544	)			(12,544	)
Total shareholders' equity			36,598				32,775				38,436
Total liabilities and shareholders' equity		$	372,282			$	374,855			$	390,283

COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)

		Three Months								Nine Months
		Ended September 30								Ended September 30
		2025				2024				2025				2024
		(unaudited)				(unaudited)				(unaudited)				(unaudited)
INTEREST INCOME:
Interest and fees on loans		$	2,007			$	2,046			$	6,073			$	6,159
Interest and dividends on securities:
Taxable			1,074				1,193				3,199				3,404
Exempt from federal income taxes			424				355				1,324				1,247
Other			46				58				147				158
Total interest income			3,551				3,652				10,743				10,968
INTEREST EXPENSE:
Interest on deposits			40				46				130				160
Interest on short-term borrowings			334				529				1,086				1,359
Total interest expense			374				575				1,216				1,519
NET INTEREST INCOME			3,177				3,077				9,527				9,449
CREDIT FOR CREDIT LOSSES			-				(35	)			-				(74	)
NET INTEREST INCOME AFTER
CREDIT FOR CREDIT LOSSES			3,177				3,112				9,527				9,523
OTHER OPERATING INCOME:
Asset management and trust			385				362				1,146				1,076
Service charges on deposit accounts			165				166				471				478
Net Security gains			(1	)			-				(15	)			3
Income from investment in life insurance			133				130				399				389
Other income			20				23				83				95
Total other operating income			702				681				2,084				2,041
OTHER OPERATING EXPENSES:
Salaries and employee benefits			2,053				2,051				5,993				6,110
Net occupancy			195				214				630				639
Furniture and equipment			146				140				454				418
Pennsylvania shares tax			71				84				223				244
Legal and professional			144				154				443				438
FDIC insurance			40				47				128				139
Other expenses			804				795				2,469				2,426
Total other operating expenses			3,453				3,485				10,340				10,414
INCOME BEFORE INCOME TAXES			426				308				1,271				1,150
Income tax benefit			(20	)			(17	)			(57	)			(55	)
Net income		$	446			$	325			$	1,328			$	1,205
Average Shares Outstanding			2,860,544				2,860,953				2,860,815				2,860,953
Earnings Per Share		$	0.16			$	0.11			$	0.46			$	0.42

SOURCE: Commercial National Financial Corp. (Pennsylvania)

View the original press release on ACCESS Newswire

FAQ

What did CNAF report for Q3 2025 net income and EPS?

CNAF reported $446,000 net income and EPS of $0.16 for Q3 2025.

How much did CNAF's net income change year‑over‑year in Q3 2025?

Net income increased by 37% versus Q3 2024 (from $325,000 to $446,000).

What capital ratios did CNAF report at September 30, 2025?

CNAF reported Tier 1 25.29%, total risk‑based 25.68%, leverage 14.26% and CET1 25.29%.

What is CNAF's net interest margin reported for Q3 2025?

The tax‑equivalent net interest margin was reported at 3.65%.

What are the details of CNAF's stock repurchase program (CNAF)?

The board authorized repurchases of up to 143,048 shares (5% of shares); 4,157 shares were repurchased through October 21, 2025 at an average price of $8.02.

Why did CNAF's book capital show a loss on September 30, 2025?

Book capital reflected a temporary after‑tax accumulated other comprehensive loss due to unrealized market depreciation in the securities available‑for‑sale portfolio.