Earnings release
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NEWS RELEASE Commercial Bancgroup, Inc. Announces Results for the Third Quarter 2026 2026-10-26 HARROGATE, TN / ACCESS Newswire / October 26, 2026 / Commercial Bancgroup, Inc. ("Commercial" or the "Company") (NASDAQ:CBK), the parent company of Commercial Bank (the "Bank"), today announced net income of $10.9 million, or $0.79 per diluted common share, for the third quarter of 2026, compared to net income of $9.5 million, or $0.77 per diluted common share, for the third quarter of 2025. Core (net of any one-time adjustments) net income was $10.9 million, or $0.79 per diluted common share, for the third quarter of 2026, compared to core net income of $9.5 million, or $0.77 per diluted common share, for the third quarter of 2025. Prior to Commercial's initial public o ering ("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: e ective upon the ling of the amended and restated charter, the reclassi cation 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 Reclassi cation"); and e ective immediately following the Stock Reclassi cation, a 250-for-1 forward stock split in respect of the outstanding shares of the Company's common stock (the "Stock Split"). Our nancial statements, including earnings per share and book value per share data, re ect the Stock Reclassi cation and Stock Split retroactively. Because the IPO occurred after September 30, 2025, the nancial impacts of the IPO are re ected in the fourth quarter of 2025 in the nancial statements presented in this press release. Third Quarter 2026 Performance Highlights: Net income of $10.9 million or $0.79 per diluted common share; Core net income of $10.9 million or $0.79 per common share diluted (see non-GAAP reconciliation) Return on average assets ("ROAA") of 1.84%; Core ROAA of 1.84% (see non-GAAP reconciliation) Return on average equity ("ROAE") of 14.16%; Core ROAE of 14.16% (see non-GAAP reconciliation) Return on average tangible common equity ("ROATCE") of 14.68%; Core ROATCE of 14.68% (see non-GAAP reconciliation) 1
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Net interest margin of 4.14%, an increase of 8 basis points from the second quarter of 2026 Core e ciency ratio of 43.68% (see non-GAAP reconciliation) Loans outstanding net of deferred fees and discounts increased $42.8 million during the quarter, or 2.2% from the second quarter of 2026 Book value per share increased $0.62, or 2.8%, to $22.71 and tangible book value per share increased $0.64, or 3.0%, to $21.92 at September 30, 2026 from $22.09 and $21.28, respectively, at June 30, 2026 (see non-GAAP reconciliation) Net charge-o s to average loans of 0.00% and nonperforming assets to total assets of 0.31% Year-To-Date Highlights: Net income of $30.6 million or $2.23 per diluted common share for the nine months ended September 30, 2026, compared to $27.1 million or $2.22 per diluted common share for the nine months ended September 30, 2025 ROAA of 1.76% for the nine months ended September 30, 2026, compared to 1.61% for the nine months ended September 30, 2025 ROAE of 13.71% for the nine months ended September 30, 2026, compared to 15.75% for the nine months ended September 30, 2025 Total operating revenue of $72.4 million for the nine months ended September 30, 2026, compared to $66.9 million for the nine months ended September 30, 2025 Noninterest expense of $33.0 million for the nine months ended September 30, 2026, compared to $31.9 million for the nine months ended September 30, 2025 Book value per share of $22.71 as of September 30, 2026, compared to $20.03 as of September 30, 2025 Tangible book value per share of $21.92 as of September 30, 2026, compared to $19.05 as of September 30, 2025 (see non-GAAP reconciliation) Core e ciency ratio of 44.7% for the nine months ended September 30, 2026, compared to 47.1% for the nine months ended September 30, 2025 (see non-GAAP reconciliation) Balance Sheet Trends Total assets were $2.4 billion as of September 30, 2026, compared to $2.2 billion as of September 30, 2025. Loans outstanding net of deferred fees and discounts were $2.0 billion as of September 30, 2026, an increase of $216.1 million, or 12.2%, from September 30, 2025. As of September 30, 2026, the Bank exceeded the minimum requirements to be well-capitalized for bank regulatory purposes, with a total risk-based capital ratio of 14.2%, a Tier 1 risk-based capital ratio of 13.3%, a common equity Tier 1 capital ratio of 13.3%, and a Tier 1 leverage ratio of 11.8%. Total deposits were $1.9 billion as of September 30, 2026, an increase of $106.8 million, or 6.0%, from September 30, 2025. Noninterest-bearing demand deposits increased $9.6 million, or 2.4%, to $408.2 million as of September 30, 2026, from $398.6 million as of September 30, 2025. Non-brokered deposits were $1.8 billion as of September 30, 2026, an increase of $107.5 million, or 6.2%, from September 30, 2025. This increase was primarily driven by normal customer business cycles and deposit growth. Nonperforming assets to total assets were 0.31% as of September 30, 2026, compared with 0.27% as of 2
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September 30, 2025. The allowance for credit losses to total loans was 0.96% and 1.02%, as of September 30, 2026 and September 30, 2025, respectively. Net Income Before Income Taxes Net income before income taxes was $13.8 million for the three months ended September 30, 2026, an increase of $1.5 million, or 12.5%, from the three months ended September 30, 2025. The increase was primarily the result of a $1.9 million, or 9.5%, increase in net interest income after provision for credit losses and a $0.1 million, or 2.8%, increase in noninterest income, partially o set by a $0.4 million, or 4.3%, increase in noninterest expense. Noninterest Income Noninterest income was $2.7 million for the three months ended September 30, 2026, an increase of $0.1 million, or 2.8%, compared to the three months ended September 30, 2025. The increase was primarily due to increases in ATM fees and bank-owned life insurance income. 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 o er 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. Non-GAAP Financial Measures This press release contains certain nancial measures that are not nancial measures recognized under generally accepted accounting principles in the U.S. ("GAAP") and, therefore, are considered non-GAAP nancial measures and should be read along with the accompanying reconciliation of non- GAAP nancial measures to GAAP nancial measures. We use non-GAAP nancial 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 nancial 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 nancial statements with their nancial analysis period-over-period as they exclude certain non-recurring items. However, non-GAAP nancial 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 nancial measures calculated in accordance with GAAP. Additionally, the manner in which the non-GAAP nancial measures contained in this press release are calculated may di er from the manner in which measures with similar names are calculated by other companies. You should understand how other companies calculate their nancial measures similar to, or with names similar to, the non-GAAP nancial measures contained in this press release when comparing such nancial measures. The non-GAAP nancial measures in this press release include the following: • Core deposits. We calculate core deposits by excluding jumbo time deposits (deposits greater than $250,000) and brokered deposits from total deposits. 3
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• Core net income. We de ne core net income as net income plus non-recurring expenses, net of the related tax e ect of non-recurring expenses. • Core net income per share diluted. We de ne core net income per share diluted as core net income divided by weighted average diluted common shares outstanding. • Core ROAA. We de ne 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 ROAE. We de ne core ROAE as core net income divided by average shareholders' equity, with average shareholders' equity based upon the average daily balance of total shareholders' equity in each period. • Core ROATCE. We de ne core ROATCE as core net income divided by total average shareholders' equity less average intangible assets (goodwill and core deposit intangibles) net of tax impact. • Pre-tax pre-provision net income (PPNI). We de ne pre-tax pre-provision net income as pre-tax net income plus provision for credit losses. • Core e ciency ratio. We de ne core e ciency ratio as noninterest expenses (less non-recurring expenses), divided by operating revenue (net interest income plus total noninterest income). This ratio is an indicator used by our management to assess operating e ciencies and is intended to demonstrate how e ciently our management is controlling expenses relative to generating revenues on our core activities. • Pre-tax, pre-provision ROAA. We de ne 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 period. • Tangible assets. We de ne tangible assets as total assets less goodwill and other intangible assets. • ROATCE. We de ne ROATCE as net income divided total average shareholders' equity less average intangible assets (goodwill and core deposit intangibles) net of tax impact. • Tangible book value per share. We de ne tangible book value per share as our tangible common equity, which is shareholders' equity reduced by goodwill and other intangible assets, divided by total shares outstanding. • Tangible common equity to tangible assets. We de ne tangible common equity to tangible assets as tangible common equity divided by tangible assets calculated as total assets net of intangible assets. The following table provides a reconciliation of the above non-GAAP nancial measures to their most directly comparable nancial measure presented in accordance with GAAP. Contacts Philip J. Metheny Sr. Executive Vice President, Chief Financial O cer Commercial Bancgroup, Inc. ir@cbtn.com 4
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423-869-5151 Roger Mobley Executive Vice President, Chief Financial O cer Commercial Bank ir@cbtn.com 704-648-0185 SOURCE: Commercial Bancgroup, Inc. View the original press release on ACCESS Newswire 5