Commercial National Financial Corporation Reports 3rd Quarter 2025 Results

ITHACA, Mich., Oct. 24, 2025 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (OTCID: CEFC) reported net income for the third quarter of 2025 of $1,791,000 or $0.45 per share compared to third quarter 2024 net income of $1,408,000 or $0.36 per share. Return on Equity was 13.35% for the third quarter of 2025 compared to 11.32% for the third quarter of 2024.

Net interest income for the third quarter of 2025 increased by $460,000 or 9.8% compared to the respective 2024 period. Interest income decreased by $177,000, mainly due to a decrease in loans. Interest expense decreased by $636,000, mainly due to a decrease in wholesale funding and funding costs. Non-interest income increased by $17,000 or 3.1%. Operating expenses increased by $19,000 or 0.5%.

Total assets were $548 million as of September 30, 2025 compared to $574 million as of September 30, 2024. The decrease in assets was mainly due to the repayment of wholesale funding and trust preferred debt totaling $24 million. While total loans decreased by $30 million or 7.3% due to the high-interest rate environment and early loan payoffs, loan quality remained strong with a non-performing assets ratio of 0.26%. 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 Year to Date Sep 30, 2025 Sep 30, 2024 Sep 30, 2025 Sep 30, 2024Return on Equity 13.35% 11.32% 12.36% 11.09% Return on Assets 1.30% 0.98% 1.16% 0.92% Net Interest Margin 3.97% 3.47% 3.82% 3.37% Sep 30, 2025 Sep 30, 2024 Non-Performing Assets Ratio 0.26% 0.21% Tier 1 Leverage Capital Ratio(1) 10.86% 10.17% Total Risk-Based Capital Ratio(1) 17.75% 16.35% Book Value Per Share$13.90 $12.80 Market Value Per Share$12.10 $9.03 (1)Ratios are for Commercial Bank

Consolidated Statements of Income (unaudited): Quarter Ended Year to Date Sep 30, 2025 Sep 30, 2024 Sep 30, 2025 Sep 30, 2024Interest Income$6,567,747 $6,744,483 $19,584,846 $20,069,571 Interest Expense 1,430,850 2,067,285 4,630,286 6,322,485 Net Interest Income 5,136,897 4,677,198 14,954,560 13,747,086 Provision for credit losses (22,241) 229 (56,454) (38,972)Non-interest income 566,870 549,612 1,579,482 1,700,596 Operating Expenses 3,536,970 3,518,227 10,709,151 10,668,945 Income before taxes 2,189,038 1,708,354 5,881,345 4,817,709 Income tax expense 398,025 300,020 1,053,975 836,080 Net Income$1,791,013 $1,408,334 $4,827,370 $3,981,629 Net Income per share – diluted$0.45 $0.36 $1.22 $1.00 Dividends declared$0.14 $0.14 $0.42 $0.42

Consolidated Balance Sheets (unaudited): Sep 30, 2025 Sep 30, 2024Assets Cash and cash equivalents$50,432,608 $55,606,415 Time deposits with other banks 1,494,000 1,992,000 Securities 87,151,048 77,226,328 Loans 377,670,851 407,594,529 Allowance for credit losses (3,413,163) (3,528,332)Loans, net 374,257,688 404,066,197 Premises and equipment, net 9,732,492 10,092,279 Other assets 24,647,796 25,285,806 Total Assets$547,715,632 $574,269,025 Liabilities Deposits$481,103,001 $505,613,266 FHLB borrowings 1,000,000 4,000,000 Trust preferred 7,310,000 10,310,000 Other liabilities 3,605,711 3,598,596 Total Liabilities 493,018,712 523,521,862 Equity Total Equity 54,696,920 50,747,163 Total Liabilities and Equity$547,715,632 $574,269,025

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