ITHACA, Mich., Jan. 22, 2026 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (OTCID: CEFC) reported net income for the fourth quarter of 2025 of $1,784,000 or $0.45 per share compared to fourth quarter 2024 net income of $1,882,000 or $0.47 per share. Return on Equity was 12.64% for the fourth quarter of 2025 compared to 14.73% for the fourth quarter of 2024.
Net interest income for the fourth quarter of 2025 increased by $320,000 or 6.5% compared to the respective 2024 period. Interest income decreased by $196,000, mainly due to a decrease in loans. Interest expense decreased by $516,000, mainly due to a decrease in funding costs. Non-interest income decreased by $218,000, while operating expenses increased by $150,000, which was mainly due to higher wages and benefits expense.
Total assets were $554 million as of December 31, 2025 compared to $567 million as of December 31, 2024. Total deposits decreased by $27 million, which consisted of a decrease of $15 million in core deposits and $12 million in brokered deposits, which were replaced with borrowings from the Federal Home Loan Bank. While total loans decreased by $24 million or 6.1% due to the high interest rate environment and early loan payoffs, loan quality remained strong with a non-performing assets ratio of 0.17%. Additionally, CEFC’s wholly owned subsidiary, Commercial Bank, remains “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):
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| | Quarter Ended | | Year to Date | |
| | Dec 31, 2025 | | Dec 31, 2024 | | Dec 31, 2025 | | Dec 31, 2024 | |
| Return on Equity | | 12.64 | % | | | 14.73 | % | | | 12.44 | % | | | 12.04 | % | |
| Return on Assets | | 1.28 | % | | | 1.31 | % | | | 1.19 | % | | | 1.02 | % | |
| Net Interest Margin | | 4.04 | % | | | 3.66 | % | | | 3.87 | % | | | 3.44 | % | |
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| | Dec 31, 2025 | | Dec 31, 2024 | | | | | |
| Non-Performing Assets Ratio | | 0.17 | % | | | 0.28 | % | | | | | |
| Tier 1 Leverage Capital Ratio(1) | | 10.88 | % | | | 10.32 | % | | | | | |
| Total Risk-Based Capital Ratio(1) | | 18.30 | % | | | 16.99 | % | | | | | |
| Book Value Per Share | $ | 14.30 | | | $ | 12.74 | | | | | | |
| Market Value Per Share | $ | 13.65 | | | $ | 9.85 | | | | | | |
| (1) Ratios are for Commercial Bank | | | | | | | | |
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Consolidated Statements of Income (unaudited):
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| | Quarter Ended | | Year to Date | |
| | Dec 31, 2025 | | Dec 31, 2024 | | Dec 31, 2025 | | Dec 31, 2024 | |
| Interest Income | $ | 6,496,798 | | | $ | 6,692,617 | | | $ | 26,081,644 | | | $ | 26,762,188 | | |
| Interest Expense | | 1,248,928 | | | | 1,764,560 | | | | 5,879,214 | | | | 8,087,045 | | |
| Net Interest Income | | 5,247,870 | | | | 4,928,057 | | | | 20,202,430 | | | | 18,675,143 | | |
| Provision for credit losses | | (19,303 | ) | | | (55,008 | ) | | | (75,757 | ) | | | (93,980 | ) | |
| Non-interest income | | 489,029 | | | | 706,790 | | | | 2,068,511 | | | | 2,407,386 | | |
| Operating Expenses | | 3,583,029 | | | | 3,433,219 | | | | 14,292,180 | | | | 14,102,164 | | |
| Income before taxes | | 2,173,173 | | | | 2,256,636 | | | | 8,054,518 | | | | 7,074,345 | | |
| Income tax expense | | 389,294 | | | | 374,998 | | | | 1,443,269 | | | | 1,211,078 | | |
| Net Income | $ | 1,783,879 | | | $ | 1,881,638 | | | $ | 6,611,249 | | | $ | 5,863,267 | | |
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| Net Income per share - diluted | $ | 0.45 | | | $ | 0.47 | | | $ | 1.67 | | | $ | 1.48 | | |
| Dividends declared | $ | 0.14 | | | $ | 0.14 | | | $ | 0.56 | | | $ | 0.56 | | |
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Consolidated Balance Sheets (unaudited):
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| | Dec 31, 2025 | | Dec 31, 2024 | | | | | |
| Assets | | | | | | | | |
| Cash and cash equivalents | $ | 57,373,635 | | | $ | 55,588,156 | | | | | | |
| Time deposits with other banks | | - | | | | 1,743,000 | | | | | | |
| Securities | | 94,346,865 | | | | 82,075,403 | | | | | | |
| Loans | | 371,327,999 | | | | 395,651,055 | | | | | | |
| Allowance for credit losses | | (3,385,810 | ) | | | (3,482,203 | ) | | | | | |
| Loans, net | | 367,942,189 | | | | 392,168,852 | | | | | | |
| Premises and equipment, net | | 9,617,442 | | | | 10,037,771 | | | | | | |
| Other assets | | 24,933,064 | | | | 25,029,745 | | | | | | |
| Total Assets | $ | 554,213,195 | | | $ | 566,642,927 | | | | | | |
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| Liabilities | | | | | | | | |
| Deposits | $ | 471,503,354 | | | $ | 498,507,449 | | | | | | |
| FHLB borrowings | | 16,000,000 | | | | 4,000,000 | | | | | | |
| Trust preferred | | 7,310,000 | | | | 10,310,000 | | | | | | |
| Other liabilities | | 3,115,523 | | | | 3,295,393 | | | | | | |
| Total Liabilities | | 497,928,877 | | | | 516,112,842 | | | | | | |
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| Equity | | | | | | | | |
| Total Equity | | 56,284,318 | | | | 50,530,085 | | | | | | |
| Total Liabilities and Equity | $ | 554,213,195 | | | $ | 566,642,927 | | | | | | |
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Contact:
Benjamin Ogle
CFO
989-875-5562
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