- Commercial National Financial Corporation (CEFC, Financial) reports Q1 2025 net income of $1,429,000, up from $1,161,000 in Q1 2024.
- Return on Equity for CEFC increases to 11.31% from 9.95% year-over-year.
- Total assets decrease to $571 million, impacted by loan payoffs and high-interest rates.
Commercial National Financial Corporation (CEFC) has announced its financial results for the first quarter of 2025, showcasing a significant improvement in net income to $1,429,000, or $0.36 per share, compared to $1,161,000, or $0.29 per share, in the first quarter of 2024. This marks an increase in earnings per share by 24% year-over-year.
The company's Return on Equity (ROE) also saw an improvement, rising to 11.31% from the previous year's 9.95%, indicating stronger profitability and efficiency in asset management. In terms of net interest income, there was a notable rise by $348,000 or 7.7%, attributed to lower interest expenses as deposit rates were adjusted following federal funds rate cuts.
In spite of the positive income metrics, total assets declined to $571 million, down from $592 million in 2024. This decrease was largely driven by a reduction in loan balances due to early payoffs and elevated interest rates, coupled with repayment of $13 million in wholesale borrowings and trust preferred debt.
CEFC’s subsidiary, Commercial Bank, remains robust in its capital positioning, with a Total Risk-Based Capital Ratio of 17.18%, well above regulatory requirements for a "well-capitalized" institution. Despite a 5.7% reduction in total loans amounting to $24 million, the loan quality remains solid, evidenced by a low non-performing assets ratio of 0.32%.
