HARROGATE, TN / ACCESS Newswire / July 27, 2026 / Commercial Bancgroup, Inc. ("Commercial" or the "Company") (NASDAQ:CBK), the parent company of Commercial Bank (the "Bank"), today announced net income of $10.2 million, or $0.75 per common share, for the second quarter of 2026, compared to net income of $8.9 million, or $0.73 per common share, for the second quarter of 2025. Core (net of any one-time adjustments) net income was $10.2 million, or $0.75 per common share, for the second quarter of 2026, compared to core net income of $9.1 million, or $0.75 per common share, for the second quarter of 2025.
Prior to Commercial's initial public offering ("IPO") of its common stock in October 2025, Commercial had three classes of common stock outstanding: common stock, Class B common stock, and Class C common stock. On September 18, 2025, Commercial's charter was amended and restated. The Company's amended and restated charter provided for, among other things:
effective upon the filing of the amended and restated charter, the reclassification and conversion of (i) each outstanding share of Class B common stock into 1.15 shares of common stock and (ii) each outstanding share of Class C common stock into 1.05 shares of common stock (collectively, the "Stock Reclassification"); and
effective immediately following the Stock Reclassification, a 250-for-1 forward stock split in respect of the outstanding shares of our common stock (the "Stock Split").
Our financial statements, including earnings per share and book value per share, reflect the stock Reclassification and Stock Split retroactively. Because the IPO occurred after September 30, 2025, the financial impacts of the IPO are reflected for the fourth quarter of 2025 in the financial statements presented in this press release.
Second Quarter 2026 Performance Highlights:
Net income of $10.2 million or $0.75 per common share; Core net income of $10.2 million or $0.75 per common share (see non-GAAP reconciliation)
Return on average assets ("ROAA") of 1.78%; Core ROAA of 1.78% (see non-GAAP reconciliation)
Return on average equity ("ROAE") of 13.73%; Core ROAE of 13.73% (see non-GAAP reconciliation)
Return on average tangible common equity ("ROATCE") of 14.26%; Core ROATCE of 14.26% (see non-GAAP reconciliation)
Net interest margin of 4.06%, an increase of 18 basis points from the first quarter of 2026
Core efficiency ratio of 44.99% (see non-GAAP reconciliation)
Loans outstanding net of deferred fees and discounts increased $48.4 million during the quarter, or 2.6% from the first quarter of 2026
Book value per share increased $0.66, or 3.1%, to $22.09 and tangible book value per share increased $0.68, or 3.3%, to $21.28 at June 30, 2026 from $21.43 and $20.60, respectively, at March 31, 2026 (see non-GAAP reconciliation)
Net charge-offs to average loans of 0.00% and nonperforming assets to total assets of 0.31%
Year-To-Date Highlights:
Net income of $19.8 million or $1.44 per common share for the six months ended June 30, 2026, compared to $17.6 million or $1.44 per common share for the six months ended June 30, 2025
ROAA of 1.72% for the six months ended June 30, 2026, compared to 1.55% for the six months ended June 30, 2025
ROAE of 13.48% for the six months ended June 30, 2026, compared to 15.71% for the six months ended June 30, 2025
Total operating revenue of $47.2 million for the six months ended June 30, 2026, compared to $44.1 million for the six months ended June 30, 2025
Non-interest expense of $22.0 million for the six months ended June 30, 2026, compared to $21.3 million for the six months ended June 30, 2025
Book value per share of $22.09 as of June 30, 2026, compared to $19.22 as of June 30, 2025
Tangible book value per share of $21.28 as of June 30, 2026, compared to $18.22 as of June 30, 2025 (see non-GAAP reconciliation)
Core efficiency ratio of 45.2% for the six months ended June 30, 2026, compared to 47.7% for the six months ended June 30, 2025 (see non-GAAP reconciliation)
Balance Sheet Trends
Total assets were $2.4 billion as of June 30, 2026, compared to $2.3 billion as of June 30, 2025.
Loans outstanding net of deferred fees and discounts were $1.9 billion as of June 30, 2026, an increase of $149.0 million, or 8.3%, from June 30, 2025.
As of June 30, 2026, the Bank exceeded the minimum requirements to be well-capitalized for bank regulatory purposes, with a total risk-based capital ratio of 14.0%, a Tier 1 risk-based capital ratio of 13.0%, a common equity Tier 1 capital ratio of 13.0%, and a Tier 1 leverage ratio of 11.6%.
Total deposits were $1.9 billion as of June 30, 2026, an increase of $21.9 million, or 1.2%, from June 30, 2025.
Noninterest bearing demand deposits increased $12.7 million, or 3.0%, to $428.4 million as of June 30, 2026, from $415.7 million as of June 30, 2025.
Non-brokered deposits were $1.8 billion as of June 30, 2026, an increase of $91.8 million, or 5.3%, from June 30, 2025. This increase was primarily driven by normal customer business cycles and deposit growth.
Asset quality declined slightly with nonperforming assets to total assets of 0.31% as of June 30, 2026 as compared to 0.30% as of June 30, 2025. The allowance for credit losses to total loans decreased to 0.96% as of June 30, 2026 from 1.00% as of June 30, 2025.
Net Income Before Income Taxes
Net income before income taxes was $12.9 million for the three months ended June 30, 2026, an increase of $1.3 million, or 11.6%, from the three months ended June 30, 2025. The increase was primarily the result of an increase in net interest income after provision for credit losses of $1.1 million or 5.3% and an increase in non-interest income of $0.4 million or 19.2%. These increases were offset by an increase of noninterest expense of $0.1 million or 1.4%.
Non-Interest Income
Non-interest income was $2.7 million for the three months ended June 30, 2026, an increase of $0.4 million, or 19.2%, as compared to the three months ended June 30, 2025. This increase was primarily due to an increase in customer service and ATM fees.
About Commercial Bancgroup, Inc.
Commercial Bancgroup, Inc. is a bank holding company headquartered in Harrogate, Tennessee. Through our wholly owned subsidiary, Commercial Bank, a Tennessee state-chartered bank, we offer a suite of traditional consumer and commercial banking products and services to businesses and individuals in select markets in Kentucky, North Carolina, and Tennessee. More information about Commercial can be found on its website at www.cbtn.com.
Commercial Bancgroup, Inc.
Financial Tables
Financial Highlights (Unaudited) | Table 1A | |||||||||||||||||||||
For the Three Months Ended | As of and for the Six | |||||||||||||||||||||
(dollars in thousands except per share amounts) | June 30, | March 31, | December 31, 2025 | September 30, 2025 | June 30, | June 30, | June 30, | |||||||||||||||
Selected Operating Data: | ||||||||||||||||||||||
Interest and Dividend Income | $ | 30,154 | $ | 29,463 | $ | 29,958 | $ | 30,021 | $ | 30,859 | $ | 59,617 | $ | 61,625 | ||||||||
Interest Expense | 8,639 | 8,985 | 9,148 | 9,799 | 10,800 | 17,624 | 22,226 | |||||||||||||||
Net Interest Income | 21,515 | 20,478 | 20,810 | 20,222 | 20,059 | 41,993 | 39,399 | |||||||||||||||
Provision for Credit Losses | 399 | 122 | 463 | - | - | 521 | - | |||||||||||||||
Net Interest Income After | ||||||||||||||||||||||
Provision for Credit Losses | 21,116 | 20,356 | 20,347 | 20,222 | 20,059 | 41,472 | 39,399 | |||||||||||||||
Noninterest Income | 2,650 | 2,591 | 2,667 | 2,626 | 2,224 | 5,241 | 4,667 | |||||||||||||||
Noninterest Expense | 10,872 | 11,087 | 10,623 | 10,552 | 10,725 | 21,959 | 21,306 | |||||||||||||||
Income Before Income Taxes | 12,894 | 11,860 | 12,391 | 12,296 | 11,558 | 24,754 | 22,760 | |||||||||||||||
Provision for Income Taxes | 2,678 | 2,326 | 2,224 | 2,829 | 2,658 | 5,004 | 5,168 | |||||||||||||||
Net Income | 10,216 | 9,534 | 10,167 | 9,467 | 8,900 | 19,750 | 17,592 | |||||||||||||||
Less: Net Income Attributable to Noncontrolling Interest | - | - | - | - | - | - | - | |||||||||||||||
Net Income attributable to Commercial Bancgroup, Inc. | 10,216 | 9,534 | 10,167 | 9,467 | 8,900 | 19,750 | 17,592 | |||||||||||||||
Add: Non-recurring Expense Net of Taxes | - | 470 | - | - | 226 | 470 | 231 | |||||||||||||||
Core Net Income (1) | 10,216 | 10,004 | 10,167 | 9,467 | 9,126 | 20,220 | 17,823 |
(1) Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of non-GAAP financial measures at table 10
Financial Highlights (Unaudited)
For the Three Months Ended | As of and for the Six | |||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, 2025 | June 30, | June 30, | June 30, | ||||||||||||||||
Share and Per Share Data: | ||||||||||||||||||||||
Basic earnings per share | $ | 0.75 | $ | 0.70 | $ | 0.74 | $ | 0.77 | $ | 0.73 | $ | 1.44 | $ | 1.44 | ||||||||
Diluted earnings per share | $ | 0.74 | $ | 0.70 | $ | 0.74 | $ | 0.77 | $ | 0.73 | $ | 1.44 | $ | 1.44 | ||||||||
Core (net of any one-time | ||||||||||||||||||||||
adjustments) net income per | ||||||||||||||||||||||
share (1) | $ | 0.75 | $ | 0.73 | $ | 0.74 | $ | 0.77 | $ | 0.75 | $ | 1.48 | $ | 1.46 | ||||||||
Book value per share | $ | 22.09 | $ | 21.43 | $ | 20.83 | $ | 20.03 | $ | 19.22 | $ | 22.09 | $ | 19.22 | ||||||||
Tangible book value | ||||||||||||||||||||||
per share (1) | $ | 21.28 | $ | 20.60 | $ | 19.98 | $ | 19.05 | $ | 18.22 | $ | 21.28 | $ | 18.22 | ||||||||
Shares of common stock | ||||||||||||||||||||||
outstanding | 13,701,270 | 13,697,987 | 13,697,987 | 12,239,644 | 12,239,644 | 13,701,270 | 12,239,644 | |||||||||||||||
Weighted average common | ||||||||||||||||||||||
shares outstanding | 13,700,296 | 13,697,987 | 13,697,987 | 12,239,644 | 12,239,644 | 13,699,148 | 12,188,624 | |||||||||||||||
Weighted average diluted shares | ||||||||||||||||||||||
outstanding | 13,722,727 | 13,712,162 | 13,704,030 | 12,240,568 | 12,239,644 | 13,721,579 | 12,188,624 |
(1) Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of non-GAAP financial measures at table 10
Financial Highlights (Unaudited)
As of and for the Three Months Ended | As of and for the Six | |||||||||||||||||||||
(dollars in thousands) | June 30, | March 31, | December 31, 2025 | September 30, 2025 | June 30, | June 30, | June 30, | |||||||||||||||
Selected Balance Sheet Data: | ||||||||||||||||||||||
Total assets | $ | 2,376,584 | $ | 2,328,789 | $ | 2,291,455 | $ | 2,214,408 | $ | 2,262,511 | $ | 2,376,584 | $ | 2,262,511 | ||||||||
Securities available-for-sale at | ||||||||||||||||||||||
fair value | 38,553 | 42,175 | 43,137 | 29,556 | 30,113 | 38,553 | 30,113 | |||||||||||||||
Securities held-to-maturity, at | ||||||||||||||||||||||
carrying value, net of | ||||||||||||||||||||||
allowance for credit losses | 94,343 | 96,387 | 97,728 | 131,915 | 157,452 | 94,343 | 157,452 | |||||||||||||||
Loans outstanding net of | ||||||||||||||||||||||
deferred fees and discounts | 1,940,536 | 1,892,174 | 1,873,533 | 1,767,193 | 1,791,516 | 1,940,536 | 1,791,516 | |||||||||||||||
Allowance for credit losses | 18,722 | 18,329 | 18,096 | 17,942 | 17,989 | 18,722 | 17,989 | |||||||||||||||
Goodwill and other intangible | ||||||||||||||||||||||
assets | 12,012 | 12,392 | 12,767 | 13,149 | 13,546 | 12,012 | 13,546 | |||||||||||||||
Total deposits | 1,873,172 | 1,892,217 | 1,815,734 | 1,780,634 | 1,851,248 | 1,873,172 | 1,851,248 | |||||||||||||||
Core deposits (1) | 1,709,887 | 1,744,967 | 1,663,931 | 1,630,897 | 1,628,181 | 1,709,887 | 1,628,181 | |||||||||||||||
Other borrowings | 175,817 | 118,248 | 166,838 | 162,760 | 148,509 | 175,817 | 148,509 | |||||||||||||||
Total Shareholders' equity | 302,618 | 293,518 | 285,344 | 245,153 | 235,268 | 302,618 | 235,268 |
(1) Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of non-GAAP financial measures at table 10
Financial Highlights (unaudited) | Table 1B | |||||||||||||||||||||
As of and for the Three Months Ended | As of and for the Six | |||||||||||||||||||||
(dollars in thousands) | June 30, | March 31, | December 31, 2025 | September 30, 2025 | June 30, | June 30, | June 30, | |||||||||||||||
Performance Ratios: | ||||||||||||||||||||||
Pre-tax pre-provision net income | ||||||||||||||||||||||
(PPNI) (1) | $ | 13,293 | $ | 11,982 | $ | 12,854 | $ | 12,296 | $ | 11,558 | $ | 25,275 | $ | 22,760 | ||||||||
Return on average assets (ROAA) | 1.78 | 1.66 | 1.81 | 1.74 | 1.57 | 1.72 | 1.55 | |||||||||||||||
Return on average equity (ROAE) | 13.73 | 13.22 | 15.46 | 15.81 | 15.57 | 13.48 | 15.71 | |||||||||||||||
Core return on average assets | ||||||||||||||||||||||
(ROAA)(1) | 1.78 | 1.74 | 1.81 | 1.74 | 1.62 | 1.76 | 1.57 | |||||||||||||||
Return on average tangible common equity (ROATCE) (1) | ||||||||||||||||||||||
equity (ROATCE) (1) | 14.26 | 13.76 | 16.40 | 16.65 | 16.43 | 14.02 | 16.94 | |||||||||||||||
Net interest rate spread | 3.44 | 3.27 | 3.34 | 3.32 | 3.11 | 3.35 | 3.07 | |||||||||||||||
Net interest margin | 4.06 | 3.88 | 4.01 | 4.02 | 3.84 | 3.97 | 3.73 | |||||||||||||||
Cost of Funds | 1.75 | 1.82 | 1.88 | 2.07 | 2.18 | 1.78 | 2.21 | |||||||||||||||
Efficiency ratio | 44.99 | 48.06 | 45.25 | 46.18 | 48.13 | 46.49 | 48.35 | |||||||||||||||
CORE efficiency ratio (1) | 44.99 | 45.45 | 45.25 | 46.18 | 46.78 | 45.21 | 47.65 | |||||||||||||||
Noninterest income to average assets | 0.46 | 0.45 | 0.47 | 0.48 | 0.39 | 0.46 | 0.41 | |||||||||||||||
Noninterest expense to average assets | 1.89 | 1.93 | 1.87 | 1.94 | 1.91 | 1.91 | 1.88 | |||||||||||||||
Average interest-earning assets to | ||||||||||||||||||||||
average interest-bearing liabilities | 1.38 | 1.36 | 1.38 | 1.36 | 1.31 | 1.37 | 1.31 | |||||||||||||||
Average equity to average total assets | 0.13 | 0.13 | 0.12 | 0.11 | 0.10 | 0.13 | 0.10 |
(1) Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of non-GAAP financial measures at table 10
Financial Highlights (unaudited) | ||||||||||||||||||||||
As of and for the Three Months Ended | As of and for the Six | |||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, 2025 | June 30, | June 30, | June 30, | ||||||||||||||||
Asset Quality Data: | ||||||||||||||||||||||
Net charge-offs to average loans | 0.00 | % | 0.01 | % | 0.01 | % | 0.00 | % | 0.01 | % | -0.01 | % | 0.01 | % | ||||||||
Total allowance for credit losses | ||||||||||||||||||||||
to total loans | 0.96 | % | 0.97 | % | 0.97 | % | 1.02 | % | 1.00 | % | 0.96 | % | 1.00 | % | ||||||||
Total allowance for credit losses | ||||||||||||||||||||||
to nonperforming loans | 281 | % | 313 | % | 290 | % | 333 | % | 307 | % | 281 | % | 307 | % | ||||||||
Nonperforming loans to gross | ||||||||||||||||||||||
loans | 0.34 | % | 0.31 | % | 0.33 | % | 0.31 | % | 0.33 | % | 0.34 | % | 0.33 | % | ||||||||
Nonperforming assets to total | ||||||||||||||||||||||
assets | 0.31 | % | 0.28 | % | 0.28 | % | 0.27 | % | 0.30 | % | 0.31 | % | 0.30 | % |
Financial Highlights (Unaudited)
As of and for the Three Months Ended | As of and for the Six | |||||||||||||||||||||
June 30, | March 31, | December 31, 2025 | September 30, 2025 | June 30, | June 30, | June 30, | ||||||||||||||||
Balance Sheet and Capital Ratios (Commercial Bancgroup, Inc.): | ||||||||||||||||||||||
Loan-to-deposit ratio | 102.60 | % | 99.03 | % | 102.19 | % | 98.24 | % | 95.80 | % | 102.60 | % | 95.80 | % | ||||||||
Noninterest bearing deposits to | ||||||||||||||||||||||
total deposits | 22.87 | % | 21.22 | % | 21.91 | % | 22.39 | % | 22.53 | % | 22.87 | % | 22.53 | % | ||||||||
Total shareholders' equity to total | ||||||||||||||||||||||
assets | 12.73 | % | 12.60 | % | 12.45 | % | 11.07 | % | 10.40 | % | 12.73 | % | 10.40 | % | ||||||||
Tangible common equity to | ||||||||||||||||||||||
tangible assets (1) | 12.33 | % | 12.18 | % | 12.01 | % | 10.59 | % | 9.92 | % | 12.33 | % | 9.92 | % | ||||||||
Tier 1 leverage ratio | 12.70 | % | 12.32 | % | 12.19 | % | 11.03 | % | 10.22 | % | 12.70 | % | 10.22 | % | ||||||||
Common equity tier 1 ratio | 14.55 | % | 14.73 | % | 14.99 | % | 12.83 | % | 12.26 | % | 14.55 | % | 12.26 | % | ||||||||
Total risk-based capital ratio | 15.48 | % | 15.68 | % | 15.96 | % | 14.12 | % | 13.55 | % | 15.48 | % | 13.55 | % | ||||||||
Other | ||||||||||||||||||||||
Number of branches | 34 | 34 | 34 | 34 | 34 | 34 | 34 | |||||||||||||||
Number of full-time equivalent | ||||||||||||||||||||||
employees | 293 | 287 | 287 | 287 | 289 | 293 | 289 |
(1) Considered non-GAAP financial measure - See "Non-GAAP Financial Measures" and reconciliation of non-GAAP financial measures at table 10
Quarter End Balance Sheets (unaudited) | Table 2 | |||||||||||||||||||
(dollars in thousands) | June 30, | March 31, | December 31, | September 30, 2025 | June 30, | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 161,327 | $ | 151,610 | $ | 118,989 | $ | 122,945 | $ | 108,501 | ||||||||||
Federal funds sold | 8,787 | 16,784 | 25,329 | 31,841 | 42,782 | |||||||||||||||
Investment securities | 132,896 | 138,562 | 140,865 | 161,471 | 187,565 | |||||||||||||||
Gross loans less deferred fees and discounts | 1,940,536 | 1,892,174 | 1,873,533 | 1,767,193 | 1,791,516 | |||||||||||||||
Allowance for credit losses | (18,722 | ) | (18,329 | ) | (18,096 | ) | (17,942 | ) | (17,989 | ) | ||||||||||
Loans, net of allowance for credit losses | 1,921,813 | 1,873,845 | 1,855,437 | 1,749,251 | 1,773,527 | |||||||||||||||
Premises and equipment, net | 50,145 | 49,445 | 49,765 | 50,268 | 50,337 | |||||||||||||||
Foreclosed assets held for sale, net | 755 | 575 | 253 | 533 | 861 | |||||||||||||||
Bank owned life insurance | 46,619 | 46,469 | 46,648 | 46,482 | 46,480 | |||||||||||||||
Goodwill and other intangible assets | 12,012 | 12,392 | ... |