Commercial National Financial Corporation Reports 1st Quarter 2025 Results

/EIN News/ -- ITHACA, Mich., April 24, 2025 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) reported net income for the first quarter of 2025 of $1,429,000 or $0.36 per share compared to first quarter 2024 net income of $1,161,000 or $0.29 per share. Return on Equity (ROE) was 11.31% for the first quarter of 2025 compared to 9.95% for the first quarter of 2024.

Net interest income for the first quarter of 2025 increased by $348,000 or 7.7% compared to the respective 2024 period. Interest income decreased by $140,000, mainly due to a decrease in loan balances. Interest expense decreased by $488,000, as deposit rates were reduced following the federal funds rate cuts during the second half of 2024. Non-interest income decreased by $67,000 or 12.5%, primarily due to lower interchange income and other miscellaneous income. Operating expenses decreased by $19,000 or 0.5%.

Total assets were $571 million as of March 31, 2025 compared to $592 million as of March 31, 2024. The decrease in assets was due to the repayment of wholesale borrowings and trust preferred debt totaling $13 million, along with a 2.5% decrease in deposit balances. While total loans decreased by $24 million or 5.7% due to the high interest rate environment and early loan payoffs, loan quality remained strong with a non-performing assets ratio of 0.32%. 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
	Mar 31, 2025				Mar 31, 2024
Return on Equity (ROE)		11.31	%			9.95	%
Return on Assets (ROA)		1.03	%			0.79	%
Net Interest Margin		3.68	%			3.25	%
	Mar 31, 2025				Mar 31, 2024
Non-Performing Assets Ratio		0.32	%			0.20	%
Tier 1 Leverage Capital Ratio(1)		10.45	%			9.70	%
Total Risk-Based Capital Ratio(1)		17.18	%			15.81	%
Book Value Per Share	$	13.14			$	11.89
Market Value Per Share	$	10.50			$	9.15
(1) Ratios are for Commercial Bank
Consolidated Statements of Income (unaudited):
	Quarter Ended
	Mar 31, 2025				Mar 31, 2024
Interest Income	$	6,475,293			$	6,615,474
Interest Expense		1,635,230				2,123,427
Net Interest Income		4,840,063				4,492,047
Provision for credit losses		-				40,000
Non-interest income		469,946				537,092
Operating Expenses		3,576,253				3,595,018
Income before taxes		1,733,756				1,394,121
Income tax expense		304,475				232,990
Net Income	$	1,429,281			$	1,161,131
Net Income per share – diluted	$	0.36			$	0.29
Dividends declared	$	0.14			$	0.14
Consolidated Balance Sheets (unaudited):
	Mar 31, 2025				Mar 31, 2024
Assets
Cash and cash equivalents	$	63,760,176			$	59,248,093
Time deposits with other banks		1,743,000				1,992,000
Securities		83,490,143				84,835,301
Loans		390,575,608				414,380,652
Allowance for credit losses		(3,482,427	)			(3,609,455	)
Loans, net		387,093,181				410,771,197
Premises and equipment, net		9,901,597				9,655,198
Other assets		24,663,342				25,205,622
Total Assets	$	570,651,439			$	591,707,411
Liabilities
Deposits	$	503,862,856			$	516,760,150
FHLB borrowings		4,000,000				14,000,000
Trust preferred		7,310,000				10,310,000
Other liabilities		3,363,007				3,490,066
Total Liabilities		518,535,863				544,560,216
Equity
Total Equity		52,115,576				47,147,195
Total Liabilities and Equity	$	570,651,439			$	591,707,411

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