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Commercial National Financial Corporation Reports 1st Quarter 2025 Results

Written by Customer Service on . Posted in Earnings Releases And Operating Results.

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

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