Commercial National Financial Corporation Reports 4th Quarter 2025 Results

Core Viewpoint - Commercial National Financial Corporation (CEFC) reported a decline in net income for Q4 2025 compared to Q4 2024, with a net income of $1,784,000 or $0.45 per share, down from $1,882,000 or $0.47 per share in the previous year [1]. Financial Performance - Net interest income for Q4 2025 increased by $320,000 or 6.5% compared to Q4 2024, despite a decrease in interest income by $196,000 due to reduced loans [2]. - Interest expense decreased by $516,000, primarily due to lower funding costs, while non-interest income fell by $218,000 and operating expenses rose by $150,000 due to higher wages and benefits [2][6]. Asset and Liability Overview - Total assets as of December 31, 2025, were $554 million, down from $567 million as of December 31, 2024 [3]. - Total deposits decreased by $27 million, with core deposits down by $15 million and brokered deposits down by $12 million, which were offset by borrowings from the Federal Home Loan Bank [3]. - Total loans decreased by $24 million or 6.1% due to a high interest rate environment and early loan payoffs, but loan quality remained strong with a non-performing assets ratio of 0.17% [3]. Key Financial Ratios - Return on Equity for Q4 2025 was 12.64%, down from 14.73% in Q4 2024 [5]. - Return on Assets was 1.28% for Q4 2025 compared to 1.31% for Q4 2024 [5]. - The Net Interest Margin improved to 4.04% in Q4 2025 from 3.66% in Q4 2024 [5]. - The Tier 1 Leverage Capital Ratio increased to 10.88% from 10.32% year-over-year [5]. - The Total Risk-Based Capital Ratio rose to 18.30% from 16.99% [5]. Shareholder Information - Book Value Per Share increased to $14.30 from $12.74 year-over-year [5]. - Market Value Per Share rose to $13.65 from $9.85 [5].