Commercial National Financial Corporation Reports 3rd Quarter 2025 Results

Core Insights - Commercial National Financial Corporation reported a net income of $1,791,000 or $0.45 per share for Q3 2025, an increase from $1,408,000 or $0.36 per share in Q3 2024, with a return on equity of 13.35% compared to 11.32% in the previous year [1][5]. Financial Performance - Net interest income for Q3 2025 increased by $460,000 or 9.8% year-over-year, while interest income decreased by $177,000 due to a reduction in loans. Interest expense saw a significant decrease of $636,000, attributed to lower wholesale funding and funding costs. Non-interest income rose by $17,000 or 3.1%, and operating expenses increased slightly by $19,000 or 0.5% [2]. - Total assets as of September 30, 2025, were $548 million, down from $574 million a year earlier, primarily due to the repayment of $24 million in wholesale funding and trust preferred debt. Total loans decreased by $30 million or 7.3%, but loan quality remained strong with a non-performing assets ratio of 0.26% [3][5]. Key Financial Ratios - Return on equity improved to 13.35% in Q3 2025 from 11.32% in Q3 2024, while return on assets increased to 1.30% from 0.98%. The net interest margin also improved to 3.97% from 3.47% year-over-year [5]. - The non-performing assets ratio was 0.26% as of September 30, 2025, compared to 0.21% in the previous year. The Tier 1 leverage capital ratio was 10.86%, up from 10.17%, and the total risk-based capital ratio increased to 17.75% from 16.35% [5]. Shareholder Value - The book value per share increased to $13.90 from $12.80, while the market value per share rose significantly to $12.10 from $9.03 [5].