Commercial National Financial Corporation Reports 3rd Quarter 2026 Results
ITHACA, Michigan, Oct. 26, 2026 -- Commercial National Financial Corporation (OTCID: CEFC) reported net income of $1,721,000 or $0.44 per share for the third quarter of 2026 compared to $1,791,000 or $0.45 per share for the third quarter of 2025. Return on Equity was 12.00% for the third quarter of 2026 compared to 13.35% for the third quarter of 2025.
Net interest income for the third quarter of 2026 increased by $124,000 or 2.4% compared to the respective 2025 period. Interest income increased by $36,000, mainly due to an increase in securities. Interest expense decreased by $88,000, mainly due to a decrease in funding costs. Non-interest income slightly decreased by $16,000, while operating expenses increased by $192,000, which was mainly due to higher wages and benefits expense.
Total assets were $565 million as of September 30, 2026 compared to $548 million as of September 30, 2025. Total securities grew by $40 million, which was financed through a strategic combination of excess cash, new wholesale borrowings, and liquidity from loan payoffs. While total deposits increased by $7 million, there was a shift towards wholesale funding, as brokered deposits increased by $20 million, which helped offset a $13 million decrease in core deposits. To further support balance sheet growth, Federal Home Loan Bank borrowings were increased by $10 million. While total loans decreased by $10 million or 2.7% due to the high interest rate environment and early loan payoffs, loan quality remained strong with a non-performing assets ratio of 0.25%. 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 September 30, 2026, CEFC has repurchased 91,333 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 Brean Capital, LLC, at 614-638-4584.
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, 2026 | Sep 30, 2025 | Sep 30, 2026 | Sep 30, 2025 | ||||||||||
| Return on equity | 12.00 | % | 13.35 | % | 11.82 | % | 12.36 | % | |||||
| Return on assets | 1.22 | % | 1.30 | % | 1.21 | % | 1.16 | % | |||||
| Net interest margin | 4.01 | % | 3.97 | % | 3.99 | % | 3.82 | % | |||||
| Sep 30, 2026 | Sep 30, 2025 | ||||||||||||
| Non-performing assets ratio | 0.25 | % | 0.26 | % | |||||||||
| Tier 1 leverage capital ratio(1) | 10.79 | % | 10.86 | % | |||||||||
| Total risk-based capital ratio(1) | 18.34 | % | 17.75 | % | |||||||||
| Book value per share | $ | 14.09 | $ | 13.90 | |||||||||
| Market value per share | $ | 16.00 | $ | 12.10 | |||||||||
| Common shares outstanding | 3,873,970 | 3,936,200 | |||||||||||
| (1) Ratios are for Commercial Bank |
| Consolidated Statements of Income (unaudited): | |||||||||||||||
| Quarter Ended | Year to Date | ||||||||||||||
| Sep 30, 2026 | Sep 30, 2025 | Sep 30, 2026 | Sep 30, 2025 | ||||||||||||
| Interest income | $ | 6,604,025 | $ | 6,567,747 | $ | 19,454,745 | $ | 19,584,846 | |||||||
| Interest expense | 1,343,035 | 1,430,850 | 3,880,544 | 4,630,286 | |||||||||||
| Net interest income | 5,260,990 | 5,136,897 | 15,574,201 | 14,954,560 | |||||||||||
| Provision for credit losses | 695 | (22,241 | ) | (45,647 | ) | (56,454 | ) | ||||||||
| Non-interest income | 550,842 | 566,870 | 1,683,713 | 1,579,482 | |||||||||||
| Operating expenses | 3,728,675 | 3,536,970 | 11,179,445 | 10,709,151 | |||||||||||
| Income before taxes | 2,082,462 | 2,189,038 | 6,124,116 | 5,881,345 | |||||||||||
| Income tax expense | 361,700 | 398,025 | 1,085,400 | 1,053,975 | |||||||||||
| Net income | $ | 1,720,762 | $ | 1,791,013 | $ | 5,038,716 | $ | 4,827,370 | |||||||
| Basic earnings per share | $ | 0.44 | $ | 0.45 | $ | 1.29 | $ | 1.22 | |||||||
| Diluted earnings per share | $ | 0.44 | $ | 0.45 | $ | 1.29 | $ | 1.22 | |||||||
| Dividends declared | $ | 0.15 | $ | 0.14 | $ | 0.45 | $ | 0.42 | |||||||
| Weighted-average common shares outstanding | 3,877,705 | 3,944,782 | 3,900,592 | 3,958,387 | |||||||||||
| Number of shares repurchased | 3,819 | 29,103 | 62,230 | 29,103 |
| Consolidated Balance Sheets (unaudited): | |||||||||||
| Sep 30, 2026 | Sep 30, 2025 | ||||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 37,645,032 | $ | 50,432,608 | |||||||
| Time deposits with other banks | - | 1,494,000 | |||||||||
| Securities | 127,362,290 | 87,151,048 | |||||||||
| Loans | 367,330,815 | 377,670,851 | |||||||||
| Allowance for credit losses | (3,328,428 | ) | (3,413,163 | ) | |||||||
| Loans, net | 364,002,387 | 374,257,688 | |||||||||
| Premises and equipment, net | 9,708,869 | 9,732,492 | |||||||||
| Other assets | 26,003,285 | 24,647,796 | |||||||||
| Total assets | $ | 564,721,863 | $ | 547,715,632 | |||||||
| Liabilities | |||||||||||
| Deposits | $ | 488,263,811 | $ | 481,103,001 | |||||||
| FHLB borrowings | 11,000,000 | 1,000,000 | |||||||||
| Trust preferred | 7,310,000 | 7,310,000 | |||||||||
| Other liabilities | 3,550,725 | 3,605,711 | |||||||||
| Total liabilities | 510,124,536 | 493,018,712 | |||||||||
| Equity | |||||||||||
| Total equity | 54,597,327 | 54,696,920 | |||||||||
| Total liabilities and equity | $ | 564,721,863 | $ | 547,715,632 | |||||||
Contact:
Benjamin Ogle
CFO
989-875-5562
This press release was published by a CLEAR® Verified individual.