Exhibit 99.1
Commercial Bancgroup, Inc. Announces Results for the Second Quarter 2026
HARROGATE, TN –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.
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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 Months Ended |
|||||||||||||||||||||||||||
| (dollars in thousands except per share amounts) | June 30, 2026 |
March 31, 2026 |
December 31, 2025 |
September 30, 2025 |
June 30, 2025 |
June 30, 2026 |
June 30, 2025 |
|||||||||||||||||||||
| 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 |
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Financial Highlights (unaudited)
| For the Three Months Ended | As of and for the Six Months Ended | |||||||||||||||||||||||||||
| June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||||||||||||||
| 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 |
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Financial Highlights (unaudited)
| As of and for the Three Months Ended | As of and for the Six Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||||||||||
| 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 |
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| Financial Highlights (unaudited) | Table 1B |
| As of and for the Three Months Ended | As of and for the Six Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||||||||||
| 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) | 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 Months Ended | |||||||||||||||||||||||||||
| June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||||||||||||||
| 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 | % | ||||||||||||||
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Financial Highlights (unaudited)
| As of and for the Three Months Ended | As of and for the Six Months Ended | |||||||||||||||||||||||||||
| June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||||||||||||||
| 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 |
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| Quarter End Balance Sheets (unaudited) | Table 2 |
| (dollars in thousands) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | |||||||||||||||
| 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 | 12,767 | 13,149 | 13,546 | |||||||||||||||
| Deferred tax asset | 1,076 | 1,056 | 1,003 | 1,427 | 1,029 | |||||||||||||||
| Other | 41,153 | 38,049 | 40,399 | 37,041 | 37,883 | |||||||||||||||
| Total Assets | $ | 2,376,584 | $ | 2,328,789 | $ | 2,291,455 | $ | 2,214,408 | $ | 2,262,511 | ||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Deposits | ||||||||||||||||||||
| Demand | 942,633 | 973,678 | 913,986 | 928,958 | 926,886 | |||||||||||||||
| Savings, NOW and money market | 413,904 | 415,132 | 414,716 | 382,002 | 382,788 | |||||||||||||||
| Time | 516,635 | 503,408 | 487,032 | 469,674 | 541,574 | |||||||||||||||
| Total deposits | 1,873,172 | 1,892,217 | 1,815,734 | 1,780,634 | 1,851,248 | |||||||||||||||
| Short-term borrowings | 102,570 | 45,068 | 88,251 | 62,663 | 46,300 | |||||||||||||||
| Long-term debt | 73,247 | 73,181 | 78,587 | 100,097 | 102,209 | |||||||||||||||
| Interest Payable | 2,575 | 2,644 | 2,962 | 3,410 | 4,545 | |||||||||||||||
| Other Liabilities | 22,402 | 22,161 | 20,576 | 22,451 | 22,941 | |||||||||||||||
| Total Liabilites | 2,073,966 | 2,035,271 | 2,006,110 | 1,969,255 | 2,027,243 | |||||||||||||||
| Shareholders’ Equity | ||||||||||||||||||||
| Common stock | 137 | 137 | 137 | 122 | 122 | |||||||||||||||
| Additional paid-in capital | 38,683 | 38,536 | 38,377 | 8,406 | 8,406 | |||||||||||||||
| Retained earnings | 264,515 | 255,670 | 247,505 | 237,366 | 227,900 | |||||||||||||||
| Accumulated other comprehensive loss | (717 | ) | (825 | ) | (675 | ) | (741 | ) | (1,160 | ) | ||||||||||
| Total Shareholders’ equity | 302,618 | 293,518 | 285,344 | 245,153 | 235,268 | |||||||||||||||
| Total liabilities and shareholders’ equity | $ | 2,376,584 | $ | 2,328,789 | $ | 2,291,454 | $ | 2,214,408 | $ | 2,262,511 | ||||||||||
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| Statement of Operations (unaudited) | Table 3 |
| For the Three Months Ended | As of and for the Six Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||||||||||
| Interest and Dividend Income | ||||||||||||||||||||||||||||
| Loans, including fees | $ | 28,396 | $ | 27,675 | $ | 27,866 | $ | 28,074 | $ | 28,432 | $ | 56,071 | $ | 56,362 | ||||||||||||||
| Debt securities-taxable | 832 | 838 | 739 | 929 | 1,070 | 1,670 | 2,045 | |||||||||||||||||||||
| Debt securities-tax-exempt | 109 | 114 | 114 | 102 | 116 | 223 | 226 | |||||||||||||||||||||
| Dividends on restricted stock | 151 | 147 | 157 | 156 | 148 | 298 | 308 | |||||||||||||||||||||
| Interest-bearing deposits | 666 | 689 | 1,082 | 760 | 1,093 | 1,355 | 2,684 | |||||||||||||||||||||
| Total interest and dividend income | 30,154 | 29,463 | 29,958 | 30,021 | 30,859 | 59,617 | 61,625 | |||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||||
| Deposits | 8,032 | 8,315 | 8,441 | 8,654 | 9,717 | 16,347 | 20,011 | |||||||||||||||||||||
| Short-term borrowings | 40 | 47 | 18 | 55 | 44 | 87 | 75 | |||||||||||||||||||||
| Long-term debt | 567 | 623 | 689 | 1,090 | 1,039 | 1,190 | 2,140 | |||||||||||||||||||||
| Total 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 | ||||||||||||||||||||||||||||
| Customer service fees | 774 | 781 | 779 | 735 | 674 | 1,555 | 1,329 | |||||||||||||||||||||
| Net gains on sales of premises and equipment | 30 | - | 44 | 20 | 32 | 30 | 4 | |||||||||||||||||||||
| Net gains on sales of foreclosed assets | - | 107 | 48 | 110 | - | 107 | 3 | |||||||||||||||||||||
| ATM fees | 977 | 854 | 877 | 846 | 892 | 1,831 | 1,691 | |||||||||||||||||||||
| Increase in BOLI | 315 | 312 | 342 | 306 | 336 | 627 | 644 | |||||||||||||||||||||
| Other | 554 | 537 | 577 | 609 | 290 | 1,091 | 996 | |||||||||||||||||||||
| Total noninterest income | 2,650 | 2,591 | 2,667 | 2,626 | 2,224 | 5,241 | 4,667 | |||||||||||||||||||||
9
| For the Three Months Ended | As of and for the Six Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||||||||||
| Noninterest Expense | ||||||||||||||||||||||||||||
| Salaries and employee benefits | $ | 5,683 | $ | 5,716 | $ | 5,753 | $ | 5,729 | $ | 5,657 | $ | 11,399 | $ | 11,283 | ||||||||||||||
| Occupancy | 856 | 843 | 877 | 738 | 916 | 1,699 | 1,791 | |||||||||||||||||||||
| Data processing | 1,099 | 1,101 | 1,068 | 1,103 | 1,151 | 2,200 | 2,358 | |||||||||||||||||||||
| Deposit insurance premiums | 202 | 242 | 234 | 267 | 245 | 444 | 471 | |||||||||||||||||||||
| Professional fees | 440 | 209 | 229 | 136 | 286 | 649 | 481 | |||||||||||||||||||||
| Depreciation and amortization | 942 | 933 | 1,001 | 955 | 803 | 1,875 | 1,751 | |||||||||||||||||||||
| Other | 1,650 | 1,440 | 1,461 | 1,624 | 1,667 | 3,090 | 3,171 | |||||||||||||||||||||
| Loss on retirement of debt | - | 603 | - | - | - | 603 | - | |||||||||||||||||||||
| Total 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 | ||||||||||||||
10
| QTD Average Balances and Yields/Rates (unaudited) | Table 4 |
| Three Months Ended | ||||||||||||||||||||||||||||||||||||
| June 30, 2026 | March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||||||||||
| Interest Earning Assets | ||||||||||||||||||||||||||||||||||||
| Gross loans, net of unearned income | $ | 1,902,119 | $ | 28,396 | 6.0 | % | $ | 1,883,103 | $ | 27,675 | 5.9 | % | $ | 1,807,127 | $ | 27,866 | 6.2 | % | ||||||||||||||||||
| Investment securities | 138,726 | 1,092 | 3.1 | % | 140,223 | 1,099 | 3.1 | % | 152,782 | 1,010 | 2.6 | % | ||||||||||||||||||||||||
| Other interest-earning assets | 77,015 | 666 | 3.5 | % | 85,953 | 689 | 3.2 | % | 116,517 | 1,082 | 3.7 | % | ||||||||||||||||||||||||
| Total interest-earning assets | 2,117,860 | 30,154 | 5.7 | % | 2,109,279 | 29,463 | 5.6 | % | 2,076,426 | 29,958 | 5.8 | % | ||||||||||||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||||||||||||||
| Allowance for credit losses | (18,497 | ) | (18,283 | ) | (17,954 | ) | ||||||||||||||||||||||||||||||
| Noninterest-earning assets | 202,388 | 205,119 | 190,810 | |||||||||||||||||||||||||||||||||
| Total Assets | 2,301,751 | 2,296,115 | 2,249,282 | |||||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
| Interest-bearing DDAs | 540,531 | 2,501 | 1.9 | % | 575,981 | 2,809 | 2.0 | % | 518,495 | 2,647 | 2.0 | % | ||||||||||||||||||||||||
| NOW, savings and MMDA deposits | 417,468 | 1,415 | 1.4 | % | 412,533 | 1,425 | 1.4 | % | 427,419 | 1,585 | 1.5 | % | ||||||||||||||||||||||||
| Time Deposits | 494,379 | 4,116 | 3.3 | % | 479,804 | 4,081 | 3.4 | % | 475,972 | 4,209 | 3.5 | % | ||||||||||||||||||||||||
| Federal Home Loan bank advances | 60,270 | 452 | 3.0 | % | 60,522 | 467 | 3.1 | % | 60,781 | 444 | 2.9 | % | ||||||||||||||||||||||||
| Other borrowings | 18,050 | 155 | 3.4 | % | 20,355 | 203 | 4.0 | % | 24,953 | 263 | 4.2 | % | ||||||||||||||||||||||||
| Total interest-bearing liabilities | 1,530,698 | 8,639 | 2.3 | % | 1,549,195 | 8,985 | 2.3 | % | 1,507,620 | 9,148 | 2.4 | % | ||||||||||||||||||||||||
| Noninterest bearing liabilites: | ||||||||||||||||||||||||||||||||||||
| Noninterest bearing deposits | 444,701 | 430,842 | 434,578 | |||||||||||||||||||||||||||||||||
| Other liabilities | 28,723 | 27,593 | 47,299 | |||||||||||||||||||||||||||||||||
| Total noninterest bearing liabilities | 473,424 | 458,435 | 481,877 | |||||||||||||||||||||||||||||||||
| Shareholders’ equity | 297,631 | 288,485 | 259,785 | |||||||||||||||||||||||||||||||||
| Total liabilities and shareholders’s equity | 2,301,753 | 2,296,115 | 2,249,282 | |||||||||||||||||||||||||||||||||
| Net interest income | 21,515 | 20,478 | 20,810 | |||||||||||||||||||||||||||||||||
| Net interest spread | 3.44 | % | 3.27 | % | 3.40 | % | ||||||||||||||||||||||||||||||
| Net interest margin | 4.06 | % | 3.88 | % | 4.01 | % | ||||||||||||||||||||||||||||||
| Cost interest bearing deposits | 1.69 | % | 1.75 | % | 1.82 | % | ||||||||||||||||||||||||||||||
| Cost of funds | 1.75 | % | 1.82 | % | 1.88 | % | ||||||||||||||||||||||||||||||
11
| YTD Average Balances and Yields/Rates (unaudited) | Table 5 |
| Six Months Ended | ||||||||||||||||||||||||
| June 30, 2026 | June 30, 2025 | |||||||||||||||||||||||
| (dollars in thousands) | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | ||||||||||||||||||
| Interest Earning Assets | ||||||||||||||||||||||||
| Gross loans, net of unearned income | 1,892,611 | 56,071 | 5.9 | % | 1,795,846 | 56,362 | 6.3 | % | ||||||||||||||||
| Investment securities | 139,475 | 2,191 | 3.1 | % | 186,623 | 2,579 | 2.8 | % | ||||||||||||||||
| Other interest-earning assets | 81,484 | 1,355 | 3.3 | % | 128,525 | 2,684 | 4.2 | % | ||||||||||||||||
| Total interest-earning assets | 2,113,570 | 59,617 | 5.6 | % | 2,110,994 | 61,625 | 5.8 | % | ||||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||
| Allowance for credit losses | (18,390 | ) | (18,242 | ) | ||||||||||||||||||||
| Noninterest-earning assets | 203,754 | 176,107 | ||||||||||||||||||||||
| Total Assets | 2,298,934 | 2,268,859 | ||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest-bearing DDAs | 558,256 | 5,310 | 1.9 | % | 552,539 | 6,277 | 2.3 | % | ||||||||||||||||
| NOW, savings and MMDA deposits | 415,001 | 2,840 | 1.4 | % | 388,331 | 2,922 | 1.5 | % | ||||||||||||||||
| Time Deposits | 487,092 | 8,197 | 3.4 | % | 557,517 | 10,813 | 3.9 | % | ||||||||||||||||
| Federal Home Loan bank advances | 60,396 | 919 | 3.0 | % | 63,534 | 74 | 0.2 | % | ||||||||||||||||
| Other borrowings | 19,203 | 358 | 3.7 | % | 44,774 | 2,140 | 9.6 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,539,948 | 17,624 | 2.3 | % | 1,606,695 | 22,226 | 2.8 | % | ||||||||||||||||
| Noninterest bearing liabilites: | ||||||||||||||||||||||||
| Noninterest bearing deposits | 437,772 | 401,935 | ||||||||||||||||||||||
| Other liabilities | 28,158 | 36,319 | ||||||||||||||||||||||
| Total noninterest bearing liabilities | 465,930 | 438,254 | ||||||||||||||||||||||
| Shareholders’ equity | 293,058 | 223,912 | ||||||||||||||||||||||
| Total liabilities and shareholders’s equity | 2,298,936 | 2,268,861 | ||||||||||||||||||||||
| Net interest income | 41,993 | 39,399 | ||||||||||||||||||||||
| Net interest spread | 3.35 | % | 3.07 | % | ||||||||||||||||||||
| Net interest margin | 3.97 | % | 3.73 | % | ||||||||||||||||||||
| Cost of total deposits | 1.72 | % | 2.11 | % | ||||||||||||||||||||
| Cost of total funding | 1.78 | % | 2.21 | % | ||||||||||||||||||||
12
| Loan Data (unaudited) | Table 6 |
| As of Quarter Ended | ||||||||||||||||||||||||||||||||||||||||
| June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | ||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||||||
| Real Estate Loans Commercial | $ | 1,140,480 | 59 | % | $ | 1,114,516 | 59 | % | $ | 1,113,440 | 59 | % | $ | 1,002,192 | 57 | % | $ | 1,016,229 | 57 | % | ||||||||||||||||||||
| Construction and land development | 201,781 | 10 | % | 195,189 | 10 | % | 176,688 | 9 | % | 201,399 | 11 | % | 189,187 | 11 | % | |||||||||||||||||||||||||
| Residential | 387,142 | 20 | % | 383,346 | 20 | % | 377,943 | 20 | % | 376,769 | 21 | % | 376,442 | 21 | % | |||||||||||||||||||||||||
| Other | 18,336 | 1 | % | 14,511 | 1 | % | 14,824 | 1 | % | 14,831 | 1 | % | 15,290 | 1 | % | |||||||||||||||||||||||||
| Commercial | 179,935 | 9 | % | 171,029 | 9 | % | 174,248 | 9 | % | 154,732 | 9 | % | 178,832 | 10 | % | |||||||||||||||||||||||||
| Consumer and other | 19,535 | 1 | % | 19,497 | 1 | % | 22,867 | 1 | % | 23,651 | 1 | % | 22,408 | 1 | % | |||||||||||||||||||||||||
| Total loans | 1,947,209 | 100 | % | 1,898,088 | 100 | % | 1,880,010 | 100 | % | 1,773,574 | 100 | % | 1,798,388 | 100 | % | |||||||||||||||||||||||||
| Deferred loan fees and discounts | 6,673 | 5,914 | 6,477 | 6,381 | 6,872 | |||||||||||||||||||||||||||||||||||
| Allowance for credit | ||||||||||||||||||||||||||||||||||||||||
| Losses | 18,722 | 18,329 | 18,096 | 17,942 | 17,989 | |||||||||||||||||||||||||||||||||||
| Loans, net | 1,921,813 | 1,873,845 | 1,855,437 | 1,749,251 | 1,773,527 | |||||||||||||||||||||||||||||||||||
13
| Nonperforming Assets (unaudited) | Table 7 |
| As of the Quarter Ended | ||||||||||||||||||||
| (dollars in thousands) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | |||||||||||||||
| Nonaccrual loans | $ | 6,661 | $ | 5,861 | $ | 6,245 | $ | 5,390 | $ | 5,846 | ||||||||||
| Past due loans 90 days and still accruing | - | - | - | - | 6 | |||||||||||||||
| Total nonperforming loans | 6,661 | 5,861 | 6,245 | 5,390 | 5,852 | |||||||||||||||
| Other real estate owned | 755 | 575 | 253 | 533 | 861 | |||||||||||||||
| Total nonperforming assets | $ | 7,416 | $ | 6,436 | $ | 6,498 | $ | 5,923 | $ | 6,713 | ||||||||||
| Allowance for credit losses | $ | 18,722 | $ | 18,329 | $ | 18,096 | $ | 17,942 | $ | 17,989 | ||||||||||
| Total loans outstanding at end of period net of deferred loan fees and discounts | $ | 1,940,536 | $ | 1,892,174 | $ | 1,873,533 | $ | 1,767,193 | $ | 1,791,516 | ||||||||||
| Nonperforming loans to total loans | 0.34 | % | 0.31 | % | 0.33 | % | 0.31 | % | 0.33 | % | ||||||||||
| Nonperforming assets to total loans and OREO | 0.38 | % | 0.34 | % | 0.35 | % | 0.34 | % | 0.37 | % | ||||||||||
| Allowance for credit losses to nonperforming loans | 281 | % | 313 | % | 290 | % | 333 | % | 307 | % | ||||||||||
| Allowance for credit losses to total loans | 0.96 | % | 0.97 | % | 0.97 | % | 1.02 | % | 1.00 | % | ||||||||||
| Nonaccrual loans to total assets | 0.28 | % | 0.25 | % | 0.27 | % | 0.24 | % | 0.26 | % | ||||||||||
| Nonperforming assets to total assets | 0.31 | % | 0.28 | % | 0.28 | % | 0.27 | % | 0.30 | % | ||||||||||
14
| Allowance for credit losses (unaudited) | Table 8 |
| As of and for the Three Months Ended | As of and for the Six Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||||||||||
| Average loans outstanding | $ | 1,902,136 | $ | 1,883,103 | $ | 1,807,127 | $ | 1,767,379 | $ | 1,794,477 | $ | 1,892,611 | $ | 1,795,846 | ||||||||||||||
| Total loans outstanding at end of period net of deferred loan fees and discounts | 1,940,536 | 1,892,174 | 1,873,533 | 1,767,193 | 1,791,516 | 1,940,536 | 1,791,516 | |||||||||||||||||||||
| ACL balance, beginning of period | 18,329 | 18,096 | 17,942 | 17,989 | 18,109 | 18,096 | 18,205 | |||||||||||||||||||||
| Charge-offs: | ||||||||||||||||||||||||||||
| Commercial real estate | - | - | (284 | ) | - | (18 | ) | - | (18 | ) | ||||||||||||||||||
| Construction and land development | - | - | - | - | - | - | - | |||||||||||||||||||||
| Residential real estate | - | - | - | - | (121 | ) | - | (121 | ) | |||||||||||||||||||
| Commercial | - | - | (48 | ) | - | - | - | (314 | ) | |||||||||||||||||||
| Consumer and other | (18 | ) | (15 | ) | (13 | ) | (186 | ) | (34 | ) | (33 | ) | (51 | ) | ||||||||||||||
| Total charge-offs | (18 | ) | (15 | ) | (345 | ) | (186 | ) | (173 | ) | (33 | ) | (504 | ) | ||||||||||||||
| Recoveries: | ||||||||||||||||||||||||||||
| Commercial real estate | - | 114 | - | 108 | 33 | 114 | 43 | |||||||||||||||||||||
| Construction and land development | - | - | - | - | - | - | 202 | |||||||||||||||||||||
| Residential real estate | 1 | - | 20 | 26 | 2 | 1 | 18 | |||||||||||||||||||||
| Commercial | 1 | 1 | 7 | 1 | 3 | 2 | 3 | |||||||||||||||||||||
| Consumer and other | 5 | 11 | 56 | 4 | 15 | 16 | 22 | |||||||||||||||||||||
| Total recoveries | 7 | 126 | 83 | 139 | 53 | 133 | 288 | |||||||||||||||||||||
| Net (charge-offs) recoveries | (11 | ) | 111 | (262 | ) | (47 | ) | (120 | ) | 100 | (216 | ) | ||||||||||||||||
| Provision for credit losses | 404 | 122 | 416 | - | - | 526 | - | |||||||||||||||||||||
| ACL balance at end of period | $ | 18,722 | $ | 18,329 | $ | 18,096 | $ | 17,942 | $ | 17,989 | $ | 18,722 | $ | 17,989 | ||||||||||||||
| Ratio of allowance to end of period loans | 0.96 | % | 0.97 | % | 0.97 | % | 1.02 | % | 1.00 | % | 0.96 | % | 1.00 | % | ||||||||||||||
| Ratio of net (charge-offs) recoveries to average loans | 0.00 | % | 0.01 | % | -0.01 | % | 0.00 | % | -0.01 | % | 0.01 | % | -0.01 | % | ||||||||||||||
15
| Loan Risk Ratings (unaudited) | Table 9 |
| As of the Quarter Ended | ||||||||||||||||||||
| (dollars in thousands) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | |||||||||||||||
| Real Estate Loans | ||||||||||||||||||||
| Commercial | ||||||||||||||||||||
| Pass | $ | 1,131,324 | $ | 1,105,529 | $ | 1,104,532 | $ | 999,788 | $ | 1,012,190 | ||||||||||
| Special mention | 8,835 | 8,897 | 8,814 | 1,776 | 2,515 | |||||||||||||||
| Substandard | 321 | 90 | 94 | 628 | 1,524 | |||||||||||||||
| Total Commercial | $ | 1,140,480 | $ | 1,114,516 | $ | 1,113,440 | $ | 1,002,192 | $ | 1,016,229 | ||||||||||
| Construction and land development | ||||||||||||||||||||
| Pass | $ | 201,389 | $ | 194,983 | $ | 176,014 | $ | 201,363 | $ | 189,149 | ||||||||||
| Special mention | 359 | 171 | 78 | - | - | |||||||||||||||
| Substandard | 32 | 35 | 596 | 36 | 38 | |||||||||||||||
| Total Construction and land development | $ | 201,781 | $ | 195,189 | $ | 176,688 | $ | 201,399 | $ | 189,187 | ||||||||||
| Residential | ||||||||||||||||||||
| Pass | $ | 380,157 | $ | 377,179 | $ | 371,583 | $ | 371,226 | $ | 371,353 | ||||||||||
| Special mention | 631 | 545 | 833 | 838 | 849 | |||||||||||||||
| Substandard | 6,354 | 5,622 | 5,527 | 4,705 | 4,240 | |||||||||||||||
| Total Residential | $ | 387,142 | $ | 383,346 | $ | 377,943 | $ | 376,769 | $ | 376,442 | ||||||||||
| Other | ||||||||||||||||||||
| Pass | $ | 18,336 | $ | 14,511 | $ | 14,824 | $ | 14,831 | $ | 15,290 | ||||||||||
| Special mention | - | - | - | - | - | |||||||||||||||
| Substandard | - | - | - | - | - | |||||||||||||||
| Total Other | $ | 18,336 | $ | 14,511 | $ | 14,824 | $ | 14,831 | $ | 15,290 | ||||||||||
| Commercial | ||||||||||||||||||||
| Pass | $ | 179,002 | $ | 170,093 | $ | 173,324 | $ | 153,819 | $ | 177,969 | ||||||||||
| Special mention | 685 | 701 | 793 | 733 | 747 | |||||||||||||||
| Substandard | 248 | 235 | 131 | 180 | 116 | |||||||||||||||
| Total Commercial | $ | 179,934 | $ | 171,029 | $ | 174,248 | $ | 154,732 | $ | 178,832 | ||||||||||
| Consumer and Other | ||||||||||||||||||||
| Pass | $ | 19,423 | $ | 19,399 | $ | 22,768 | $ | 23,616 | $ | 22,367 | ||||||||||
| Special mention | 34 | 44 | 21 | 5 | 6 | |||||||||||||||
| Substandard | 78 | 54 | 79 | 30 | 36 | |||||||||||||||
| Total Consumer | $ | 19,535 | $ | 19,497 | $ | 22,868 | $ | 23,651 | $ | 22,409 | ||||||||||
| Total loans | ||||||||||||||||||||
| Pass | $ | 1,929,632 | $ | 1,881,694 | $ | 1,863,045 | $ | 1,764,643 | $ | 1,788,318 | ||||||||||
| Special mention | 10,543 | 10,358 | 10,539 | 3,352 | 4,117 | |||||||||||||||
| Substandard | 7,034 | 6,036 | 6,427 | 5,579 | 5,954 | |||||||||||||||
| Total Gross loans | $ | 1,947,209 | $ | 1,898,088 | $ | 1,880,011 | $ | 1,773,574 | $ | 1,798,389 | ||||||||||
16
Non-GAAP Financial Measures
This press release contains certain financial measure(s) that are not financial measure(s) recognized under generally accepted accounting principles in the U.S. (“GAAP”) and, therefore, are considered non-GAAP financial measure(s) and should be read along with the accompanying reconciliation of non-GAAP financial measure(s) to GAAP financial measure(s). We use non-GAAP financial measures, certain of which are included in this press release, both to explain our operating results to shareholders and the investment community and to evaluate, analyze, and manage our business. We believe that these non-GAAP financial measures provide a better understanding of ongoing operations, enhance the comparability of results across periods, and enable investors to better understand our performance. Our management believes that the “core” metrics described below and used in this press release assist users of the Company’s financial statements with their financial analysis period-over-period as they exclude certain non-recurring items. However, non-GAAP financial measures should not be considered in isolation and should be considered supplemental in nature and not as a substitute for or superior to the most directly comparable or other financial measures calculated in accordance with GAAP. Additionally, the manner in which the non-GAAP financial measure(s) contained in this press release are calculated may differ from the manner in which measures with similar names are calculated by other companies. You should understand how other companies calculate their financial measures similar to, or with names similar to, the non-GAAP financial measure(s) contained in this press release when comparing such financial measures.
The non-GAAP financial measures in this press release include the following:
| ● | Core deposits. We calculate core deposits by excluding jumbo time deposits (deposits greater than or equal to $250,000) from total deposits. |
| ● | Core net income. We define core net income as net income plus non-recurring expenses, net of the related tax effect of non-recurring expenses. |
| ● | Core net income per share. We define core net income per share as core net income divided by weighted average common shares outstanding. |
| ● | Core ROAA. We define core ROAA as core net income divided by average assets, with average assets based upon the average daily balance of total assets in each period. |
| ● | Core return on average tangible common equity. We define core return on average tangible common equity as core net income divided by total average shareholders’ equity less average intangible assets (goodwill and core deposit intangibles). |
| ● | Pre-tax pre-provision net income. We define pre-tax pre-provision net income as pre-tax net income plus provision for loan and lease losses. |
| ● | Core efficiency ratio. We define core efficiency ratio as noninterest expenses (less non-recurring expenses), divided by operating revenue (net interest plus total noninterest income). This ratio is an indicator used by our management to assess operating efficiencies and is intended to demonstrate how efficiently our management is controlling expenses relative to generating revenues on our core activities. |
| ● | Pre-tax, pre-provision ROAA. We define pre-tax, pre-provision ROAA as pre-tax, pre-provision net income divided by average assets calculated based upon the average daily balance of total assets in each year. |
| ● | Tangible assets. We define tangible assets as total assets less goodwill and other intangible assets. |
| ● | Return on average tangible common equity ROATCE. We define return on average tangible common equity ROATC as net income divided by average common equity calculated based as total average shareholders’ equity less average intangible assets net of tax benefit. |
| ● | Tangible book value per share. We define tangible book value per share as our tangible common equity, which is shareholders’ equity reduced by goodwill and other intangible assets, divided by diluted weighted average shares outstanding. |
| ● | Tangible common equity to tangible assets. We define tangible common equity to tangible assets as tangible common equity divided by tangible assets calculated based as total assets net of intangible assets. |
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The following table provides a reconciliation of the above non-GAAP financial measures to their most directly comparable financial measure presented in accordance with GAAP.
Non-GAAP Reconciliations (unaudited)
| As of and for the Three Months Ended | As of and for the Six Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands, except per share data) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||||||||||
| Pre-Tax Pre-Provision Net Income: | ||||||||||||||||||||||||||||
| Pre-tax income | $ | 12,894 | $ | 11,860 | $ | 12,391 | $ | 12,296 | $ | 11,558 | $ | 24,754 | $ | 22,760 | ||||||||||||||
| Add: provision for loan and lease losses | 399 | 122 | 463 | - | - | 521 | - | |||||||||||||||||||||
| Pre-tax pre-provision net income | $ | 13,293 | $ | 11,982 | $ | 12,854 | $ | 12,296 | $ | 11,558 | $ | 25,275 | $ | 22,760 | ||||||||||||||
| Tangible Common Equity: | ||||||||||||||||||||||||||||
| Shareholders’ equity | $ | 302,618 | $ | 293,518 | $ | 285,344 | $ | 245,153 | $ | 235,268 | 302,618 | 235,268 | ||||||||||||||||
| Less: non controlling interest | - | |||||||||||||||||||||||||||
| Less: goodwill | 8,511 | 8,511 | 8,511 | 8,511 | 8,511 | 8,511 | 8,511 | |||||||||||||||||||||
| Less: core deposit intangible (net of tax benefit) | 2,594 | 2,875 | 3,164 | 3,448 | 3,744 | 2,594 | 3,744 | |||||||||||||||||||||
| Tangible common equity | $ | 291,513 | $ | 282,132 | $ | 273,669 | $ | 233,194 | $ | 223,013 | $ | 291,513 | $ | 223,013 | ||||||||||||||
| Return on Average Tangible Common Equity: | ||||||||||||||||||||||||||||
| Total average shareholders’ equity | $ | 297,631 | $ | 288,485 | $ | 259,784 | $ | 239,473 | $ | 227,883 | $ | 293,058 | $ | 223,912 | ||||||||||||||
| Less: average intangible assets (net of tax benefit) | 11,105 | 11,386 | 11,767 | 11,980 | 11,997 | $ | 11,245 | 13,497 | ||||||||||||||||||||
| Less: average non controlling interest | - | - | - | - | - | - | 2,701 | |||||||||||||||||||||
| Average common tangible equity | 286,526 | 277,099 | 248,017 | 227,493 | 215,886 | 281,813 | 207,714 | |||||||||||||||||||||
| Net income to shareholders | 10,216 | 9,534 | 10,167 | 9,467 | 8,900 | 19,750 | 17,592 | |||||||||||||||||||||
| Return on average common tangible equity | 14.26 | % | 13.76 | % | 16.40 | % | 16.65 | % | 16.49 | % | 14.02 | % | 16.94 | % | ||||||||||||||
| Tangible Book Value per Share: | ||||||||||||||||||||||||||||
| Tangible common equity | $ | 291,513 | $ | 282,132 | $ | 273,669 | $ | 233,194 | $ | 223,013 | $ | 291,513 | $ | 223,013 | ||||||||||||||
| Shares of common stock outstanding (weighted average) | 13,700,296 | 13,697,987 | 13,697,987 | 12,239,644 | 12,239,644 | 13,699,148 | 12,188,624 | |||||||||||||||||||||
| Tangible book value per share, reported | $ | 21.28 | $ | 20.60 | $ | 19.98 | $ | 19.05 | $ | 18.22 | $ | 21.28 | $ | 18.22 | ||||||||||||||
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| As of and for the Three Months Ended | As of and for the Six Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands, except per share data) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||||||||||
| Tangible Common Equity to Tangible Assets: | ||||||||||||||||||||||||||||
| Tangible common equity | $ | 291,513 | $ | 282,132 | $ | 273,669 | $ | 233,194 | $ | 223,013 | $ | 291,513 | $ | 223,013 | ||||||||||||||
| Total assets | 2,376,584 | 2,328,789 | 2,291,455 | 2,214,408 | 2,262,511 | 2,376,584 | 2,262,511 | |||||||||||||||||||||
| Less: intangible assets | 12,012 | 12,392 | 12,767 | 13,149 | 13,546 | 12,012 | 13,546 | |||||||||||||||||||||
| Tangible assets | 2,364,572 | 2,316,397 | 2,278,688 | 2,201,258 | 2,248,965 | 2,364,572 | 2,248,965 | |||||||||||||||||||||
| Tangible common equity to tangible assets | 12.33 | % | 12.18 | % | 12.01 | % | 10.59 | % | 9.92 | % | 12.33 | % | 9.92 | % | ||||||||||||||
| Core Deposits: | ||||||||||||||||||||||||||||
| Total Deposits | $ | 1,873,172 | $ | 1,892,217 | $ | 1,815,734 | $ | 1,780,634 | $ | 1,851,248 | $ | 1,873,172 | 1,851,248 | |||||||||||||||
| Less: Time deposits greater than $250,000 | 107,910 | 105,717 | 103,833 | 101,767 | 97,844 | 107,910 | 97,844 | |||||||||||||||||||||
| Less: Brokered deposits | 55,375 | 41,533 | 47,970 | 47,970 | 125,223 | 55,375 | 125,223 | |||||||||||||||||||||
| Core deposits | $ | 1,709,887 | $ | 1,744,967 | $ | 1,663,931 | $ | 1,630,897 | $ | 1,628,181 | $ | 1,709,887 | $ | 1,628,181 | ||||||||||||||
| Core Net Income: | ||||||||||||||||||||||||||||
| Net income | $ | 10,216 | $ | 9,534 | $ | 10,167 | $ | 9,467 | $ | 8,900 | $ | 19,750 | $ | 17,592 | ||||||||||||||
| Add: Non-recurring Expense | - | 603 | - | - | 302 | 603 | 309 | |||||||||||||||||||||
| Less: tax effect | - | (133 | ) | - | - | (76 | ) | (133 | ) | (78 | ) | |||||||||||||||||
| Core net income | $ | 10,216 | $ | 10,004 | $ | 10,167 | $ | 9,467 | $ | 9,126 | $ | 20,220 | 17,823 | |||||||||||||||
| Core Net Income per Share: | ||||||||||||||||||||||||||||
| Core net income | $ | 10,216 | $ | 10,004 | $ | 10,167 | $ | 9,467 | $ | 9,126 | $ | 20,220 | $ | 17,823 | ||||||||||||||
| 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 | |||||||||||||||||||||
| Core net income per share | $ | 0.75 | $ | 0.73 | $ | 0.74 | $ | 0.77 | $ | 0.75 | $ | 1.48 | $ | 1.46 | ||||||||||||||
| Core Return on Average Assets: | ||||||||||||||||||||||||||||
| Core net income | $ | 10,216 | $ | 10,004 | $ | 10,167 | $ | 9,467 | $ | 9,126 | $ | 20,220 | $ | 17,823 | ||||||||||||||
| Average assets | 2,301,752 | 2,296,115 | 2,249,282 | 2,170,869 | 2,248,134 | 2,298,934 | 2,268,859 | |||||||||||||||||||||
| Core return on average assets | 1.78 | % | 1.74 | % | 1.81 | % | 1.74 | % | 1.62 | % | 1.76 | % | 1.57 | % | ||||||||||||||
| Core Return on Average Tangible Common Equity: | ||||||||||||||||||||||||||||
| Average tangible common equity | $ | 286,526 | $ | 277,099 | $ | 248,017 | $ | 227,493 | $ | 215,886 | $ | 281,813 | $ | 207,714 | ||||||||||||||
| Core net income | 10,216 | 10,004 | 10,167 | 9,467 | 9,126 | 20,220 | 17,823 | |||||||||||||||||||||
| Core return on average tangible common equity | 14.26 | % | 14.44 | % | 16.40 | % | 16.65 | % | 16.91 | % | 14.35 | % | 17.16 | % | ||||||||||||||
| Core Efficiency Ratio: | ||||||||||||||||||||||||||||
| Add: net interest income | $ | 21,515 | $ | 20,478 | $ | 20,810 | $ | 20,222 | $ | 20,059 | $ | 41,993 | $ | 39,399 | ||||||||||||||
| Add: non interest income | 2,650 | 2,591 | 2,667 | 2,626 | 2,224 | 5,241 | 4,667 | |||||||||||||||||||||
| Operating revenue | $ | 24,165 | $ | 23,069 | $ | 23,477 | $ | 22,848 | $ | 22,283 | $ | 47,234 | 44,066 | |||||||||||||||
| Total noninterest expenses | 10,872 | 11,087 | 10,623 | 10,552 | 10,725 | 21,959 | 21,306 | |||||||||||||||||||||
| Less: non-recurring expenses | - | 603 | - | - | 302 | 603 | 309 | |||||||||||||||||||||
| Core noninterest expenses | 10,872 | 10,484 | 10,623 | 10,552 | 10,423 | 21,356 | 20,997 | |||||||||||||||||||||
| Core efficiency ratio | 44.99 | % | 45.45 | % | 45.25 | % | 46.18 | % | 46.78 | % | 45.21 | % | 47.65 | % | ||||||||||||||
| Efficiency ratio | 44.99 | % | 48.06 | % | 45.25 | % | 46.18 | % | 48.13 | % | 46.49 | % | 48.35 | % | ||||||||||||||
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Contacts
Philip J. Metheny
Sr. Executive Vice President, Chief Financial Officer
Commercial Bancgroup, Inc.
ir@cbtn.com
423-869-5151
Roger Mobley
Executive Vice President, Chief Financial Officer
Commercial Bank
ir@cbtn.com
704-648-0185
Source
Commercial Bancgroup, Inc.
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