Commercial National Financial Corporation Reports 2nd Quarter 2026 Results
ITHACA, Mich., July 27, 2026 (GLOBE NEWSWIRE) — Commercial National Financial Corporation (OTCID: CEFC) reported net income of $1,641,000 or $0.42 per share for the second quarter of 2026 compared to $1,607,000 or $0.41 per share for the second quarter of 2025. Return on Equity was 11.60% for the second quarter of 2026 compared to 12.36% for the second quarter of 2025.
Net interest income for the second quarter of 2026 increased by $194,000 or 3.9% compared to the respective 2025 period. Interest income decreased by $100,000, mainly due to a decrease in loans. Interest expense decreased by $294,000, mainly due to a decrease in funding costs. Non-interest income increased by $77,000, while operating expenses increased by $206,000, which was mainly due to higher wages and benefits expense.
Total assets remained consistent at $553 million as of June 30, 2026 compared to the respective 2025 period. Total securities grew by $37 million, as excess cash was invested into the securities portfolio, which included $17 million from reduced loan balances. While loans decreased during the period, loan quality remained strong with a non-performing assets ratio of 0.26%. Total deposits decreased by $17 million and were mostly replaced with borrowings from the Federal Home Loan Bank. Additionally, CEFC’s wholly owned subsidiary, Commercial Bank, remained “well capitalized” for regulatory purposes.
CEFC announced a share repurchase program in May of 2025, which remains in effect indefinitely. As of June 30, 2026, CEFC has repurchased 87,514 shares since the inception of the repurchase program and has allocated an additional $1.2 million for future share repurchases. CEFC may repurchase shares under the program at its discretion, taking into account factors such as the share price, market conditions, share availability, and other relevant considerations. There is no guarantee that any specific number of shares will be repurchased, and CEFC may modify, renew, suspend, or terminate the program at any time without prior notice. For further information about the stock repurchase program, please contact our primary market maker, Nick Bicking at D.A. Davidson & Co., at 614-710-7060.
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 | ||||||||||||
| Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | ||||||||||
| Return on equity | 11.60 | % | 12.36 | % | 11.74 | % | 11.84 | % | |||||
| Return on assets | 1.19 | % | 1.16 | % | 1.21 | % | 1.09 | % | |||||
| Net interest margin | 4.00 | % | 3.80 | % | 3.99 | % | 3.74 | % | |||||
| Jun 30, 2026 | Jun 30, 2025 | ||||||||||||
| Non-performing assets ratio | 0.26 | % | 0.27 | % | |||||||||
| Tier 1 leverage capital ratio(1) | 10.89 | % | 10.63 | % | |||||||||
| Total risk-based capital ratio(1) | 18.36 | % | 17.46 | % | |||||||||
| Book value per share | $ | 14.66 | $ | 13.21 | |||||||||
| Market value per share | $ | 15.00 | $ | 10.50 | |||||||||
| Common shares outstanding | 3,877,789 | 3,965,303 | |||||||||||
| (1)Ratios are for Commercial Bank | |||||||||||||
Consolidated Statements of Income (unaudited):
| Quarter Ended | Year to Date | ||||||||||||||
| Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | ||||||||||||
| Interest income | $ | 6,442,002 | $ | 6,541,806 | $ | 12,850,720 | $ | 13,017,099 | |||||||
| Interest expense | 1,270,421 | 1,564,206 | 2,537,509 | 3,199,436 | |||||||||||
| Net interest income | 5,171,581 | 4,977,600 | 10,313,211 | 9,817,663 | |||||||||||
| Provision for credit losses | (6,342 | ) | (34,213 | ) | (46,342 | ) | (34,213 | ) | |||||||
| Non-interest income | 619,568 | 542,666 | 1,132,871 | 1,012,612 | |||||||||||
| Operating expenses | 3,801,740 | 3,595,928 | 7,450,770 | 7,172,181 | |||||||||||
| Income before taxes | 1,995,751 | 1,958,551 | 4,041,654 | 3,692,307 | |||||||||||
| Income tax expense | 354,700 | 351,475 | 723,700 | 655,950 | |||||||||||
| Net income | $ | 1,641,051 | $ | 1,607,076 | $ | 3,317,954 | $ | 3,036,357 | |||||||
| Basic earnings per share | $ | 0.42 | $ | 0.41 | $ | 0.85 | $ | 0.77 | |||||||
| Diluted earnings per share | $ | 0.42 | $ | 0.41 | $ | 0.85 | $ | 0.77 | |||||||
| Dividends declared | $ | 0.15 | $ | 0.14 | $ | 0.30 | $ | 0.28 | |||||||
| Weighted-average common shares outstanding | 3,893,038 | 3,965,303 | 3,912,224 | 3,965,303 | |||||||||||
| Number of shares repurchased | 28,414 | – | 58,411 | – | |||||||||||
Consolidated Balance Sheets (unaudited):
| Jun 30, 2026 | Jun 30, 2025 | ||||||
| Assets | |||||||
| Cash and cash equivalents | $ | 37,586,165 | $ | 55,001,227 | |||
| Time deposits with other banks | – | 1,494,000 | |||||
| Securities | 117,326,887 | 80,346,101 | |||||
| Loans | 367,025,176 | 383,769,712 | |||||
| Allowance for credit losses | (3,327,794 | ) | (3,432,412 | ) | |||
| Loans, net | 363,697,382 | 380,337,300 | |||||
| Premises and equipment, net | 9,848,688 | 9,858,626 | |||||
| Other assets | 24,786,092 | 25,056,597 | |||||
| Total assets | $ | 553,245,214 | $ | 552,093,851 | |||
| Liabilities | |||||||
| Deposits | $ | 467,630,470 | $ | 484,981,138 | |||
| FHLB borrowings | 18,000,000 | 4,000,000 | |||||
| Trust preferred | 7,310,000 | 7,310,000 | |||||
| Other liabilities | 3,468,980 | 3,415,374 | |||||
| Total liabilities | 496,409,450 | 499,706,512 | |||||
| Equity | |||||||
| Total equity | 56,835,764 | 52,387,339 | |||||
| Total liabilities and equity | $ | 553,245,214 | $ | 552,093,851 | |||
Contact:
Benjamin Ogle
CFO
989-875-5562
