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, CEFCās wholly owned subsidiary, Commercial Bank, remains significantly above āwell capitalizedā 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): | Ā | Ā | |||||
| Ā | Quarter Ended | ||||||
| Ā | Mar 31, 2025 | Ā | Mar 31, 2024 | ||||
| Return on Equity (ROE) | Ā | 11.31 | % | Ā | Ā | 9.95 | % |
| Return on Assets (ROA) | Ā | 1.03 | % | Ā | Ā | 0.79 | % |
| Net Interest Margin | Ā | 3.68 | % | Ā | Ā | 3.25 | % |
| Ā | Ā | ||||||
| Ā | Mar 31, 2025 | Ā | Mar 31, 2024 | ||||
| Non-Performing Assets Ratio | Ā | 0.32 | % | Ā | Ā | 0.20 | % |
| Tier 1 Leverage Capital Ratio(1) | Ā | 10.45 | % | Ā | Ā | 9.70 | % |
| Total Risk-Based Capital Ratio(1) | Ā | 17.18 | % | Ā | Ā | 15.81 | % |
| Book Value Per Share | $ | 13.14 | Ā | Ā | $ | 11.89 | Ā |
| Market Value Per Share | $ | 10.50 | Ā | Ā | $ | 9.15 | Ā |
| (1) Ratios are for Commercial Bank | Ā | Ā | Ā | ||||
| Ā | Ā | Ā | Ā | ||||
| Ā | Ā | Ā | Ā | ||||
| Consolidated Statements of Income (unaudited): | |||||||
| Ā | Quarter Ended | ||||||
| Ā | Mar 31, 2025 | Ā | Mar 31, 2024 | ||||
| Interest Income | $ | 6,475,293 | Ā | Ā | $ | 6,615,474 | Ā |
| Interest Expense | Ā | 1,635,230 | Ā | Ā | Ā | 2,123,427 | Ā |
| Net Interest Income | Ā | 4,840,063 | Ā | Ā | Ā | 4,492,047 | Ā |
| Provision for credit losses | Ā | – | Ā | Ā | Ā | 40,000 | Ā |
| Non-interest income | Ā | 469,946 | Ā | Ā | Ā | 537,092 | Ā |
| Operating Expenses | Ā | 3,576,253 | Ā | Ā | Ā | 3,595,018 | Ā |
| Income before taxes | Ā | 1,733,756 | Ā | Ā | Ā | 1,394,121 | Ā |
| Income tax expense | Ā | 304,475 | Ā | Ā | Ā | 232,990 | Ā |
| Net Income | $ | 1,429,281 | Ā | Ā | $ | 1,161,131 | Ā |
| Ā | Ā | Ā | Ā | ||||
| Net Income per shareĀ āĀ diluted | $ | 0.36 | Ā | Ā | $ | 0.29 | Ā |
| Dividends declared | $ | 0.14 | Ā | Ā | $ | 0.14 | Ā |
| Ā | Ā | Ā | Ā | ||||
| Ā | Ā | Ā | Ā | ||||
| Consolidated Balance Sheets (unaudited): | Ā | Ā | |||||
| Ā | Mar 31, 2025 | Ā | Mar 31, 2024 | ||||
| Assets | Ā | Ā | Ā | ||||
| Cash and cash equivalents | $ | 63,760,176 | Ā | Ā | $ | 59,248,093 | Ā |
| Time deposits with other banks | Ā | 1,743,000 | Ā | Ā | Ā | 1,992,000 | Ā |
| Securities | Ā | 83,490,143 | Ā | Ā | Ā | 84,835,301 | Ā |
| Loans | Ā | 390,575,608 | Ā | Ā | Ā | 414,380,652 | Ā |
| Allowance for credit losses | Ā | (3,482,427 | ) | Ā | Ā | (3,609,455 | ) |
| Loans, net | Ā | 387,093,181 | Ā | Ā | Ā | 410,771,197 | Ā |
| Premises and equipment, net | Ā | 9,901,597 | Ā | Ā | Ā | 9,655,198 | Ā |
| Other assets | Ā | 24,663,342 | Ā | Ā | Ā | 25,205,622 | Ā |
| Total Assets | $ | 570,651,439 | Ā | Ā | $ | 591,707,411 | Ā |
| Ā | Ā | Ā | Ā | ||||
| Liabilities | Ā | Ā | Ā | ||||
| Deposits | $ | 503,862,856 | Ā | Ā | $ | 516,760,150 | Ā |
| FHLB borrowings | Ā | 4,000,000 | Ā | Ā | Ā | 14,000,000 | Ā |
| Trust preferred | Ā | 7,310,000 | Ā | Ā | Ā | 10,310,000 | Ā |
| Other liabilities | Ā | 3,363,007 | Ā | Ā | Ā | 3,490,066 | Ā |
| Total Liabilities | Ā | 518,535,863 | Ā | Ā | Ā | 544,560,216 | Ā |
| Ā | Ā | Ā | Ā | ||||
| Equity | Ā | Ā | Ā | ||||
| Total Equity | Ā | 52,115,576 | Ā | Ā | Ā | 47,147,195 | Ā |
| Total Liabilities and Equity | $ | 570,651,439 | Ā | Ā | $ | 591,707,411 | Ā |
| Ā | Ā | Ā | Ā | ||||
Contact:
Benjamin Z. Ogle
CFO
989-875-5562
