Groowe Groowe BETA / Newsroom
⏱ News is delayed by 15 minutes. Sign in for real-time access. Sign in

Commercial Bancgroup, Inc. Announces Results for the Second Quarter 2026

accessnewswire.com

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

Table 1A

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

$

30,154

$

29,463

$

29,958

$

30,021

$

30,859

$

59,617

$

61,625

8,639

8,985

9,148

9,799

10,800

17,624

22,226

21,515

20,478

20,810

20,222

20,059

41,993

39,399

399

122

463

-

-

521

-

21,116

20,356

20,347

20,222

20,059

41,472

39,399

2,650

2,591

2,667

2,626

2,224

5,241

4,667

10,872

11,087

10,623

10,552

10,725

21,959

21,306

12,894

11,860

12,391

12,296

11,558

24,754

22,760

2,678

2,326

2,224

2,829

2,658

5,004

5,168

10,216

9,534

10,167

9,467

8,900

19,750

17,592

-

-

-

-

-

-

-

10,216

9,534

10,167

9,467

8,900

19,750

17,592

-

470

-

-

226

470

231

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

Months Ended

June 30,

2026

March 31,

2026

December 31,

2025

September 30, 2025

June 30,

2025

June 30,

2026

June 30,

2025

$

0.75

$

0.70

$

0.74

$

0.77

$

0.73

$

1.44

$

1.44

$

0.74

$

0.70

$

0.74

$

0.77

$

0.73

$

1.44

$

1.44

$

0.75

$

0.73

$

0.74

$

0.77

$

0.75

$

1.48

$

1.46

$

22.09

$

21.43

$

20.83

$

20.03

$

19.22

$

22.09

$

19.22

$

21.28

$

20.60

$

19.98

$

19.05

$

18.22

$

21.28

$

18.22

13,701,270

13,697,987

13,697,987

12,239,644

12,239,644

13,701,270

12,239,644

13,700,296

13,697,987

13,697,987

12,239,644

12,239,644

13,699,148

12,188,624

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

Months Ended

June 30,

2026

March 31,

2026

December 31, 2025

September 30, 2025

June 30,

2025

June 30,

2026

June 30,

2025

$

2,376,584

$

2,328,789

$

2,291,455

$

2,214,408

$

2,262,511

$

2,376,584

$

2,262,511

38,553

42,175

43,137

29,556

30,113

38,553

30,113

94,343

96,387

97,728

131,915

157,452

94,343

157,452

1,940,536

1,892,174

1,873,533

1,767,193

1,791,516

1,940,536

1,791,516

18,722

18,329

18,096

17,942

17,989

18,722

17,989

12,012

12,392

12,767

13,149

13,546

12,012

13,546

1,873,172

1,892,217

1,815,734

1,780,634

1,851,248

1,873,172

1,851,248

1,709,887

1,744,967

1,663,931

1,630,897

1,628,181

1,709,887

1,628,181

175,817

118,248

166,838

162,760

148,509

175,817

148,509

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

Table 1B

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

$

13,293

$

11,982

$

12,854

$

12,296

$

11,558

$

25,275

$

22,760

1.78

1.66

1.81

1.74

1.57

1.72

1.55

13.73

13.22

15.46

15.81

15.57

13.48

15.71

1.78

1.74

1.81

1.74

1.62

1.76

1.57

14.26

13.76

16.40

16.65

16.43

14.02

16.94

3.44

3.27

3.34

3.32

3.11

3.35

3.07

4.06

3.88

4.01

4.02

3.84

3.97

3.73

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

44.99

45.45

45.25

46.18

46.78

45.21

47.65

0.46

0.45

0.47

0.48

0.39

0.46

0.41

1.89

1.93

1.87

1.94

1.91

1.91

1.88

1.38

1.36

1.38

1.36

1.31

1.37

1.31

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

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

0.00

%

0.01

%

0.01

%

0.00

%

0.01

%

-0.01

%

0.01

%

0.96

%

0.97

%

0.97

%

1.02

%

1.00

%

0.96

%

1.00

%

281

%

313

%

290

%

333

%

307

%

281

%

307

%

0.34

%

0.31

%

0.33

%

0.31

%

0.33

%

0.34

%

0.33

%

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

Months Ended

June 30,

2026

March 31,

2026

December 31, 2025

September 30, 2025

June 30,

2025

June 30,

2026

June 30,

2025

102.60

%

99.03

%

102.19

%

98.24

%

95.80

%

102.60

%

95.80

%

22.87

%

21.22

%

21.91

%

22.39

%

22.53

%

22.87

%

22.53

%

12.73

%

12.60

%

12.45

%

11.07

%

10.40

%

12.73

%

10.40

%

12.33

%

12.18

%

12.01

%

10.59

%

9.92

%

12.33

%

9.92

%

12.70

%

12.32

%

12.19

%

11.03

%

10.22

%

12.70

%

10.22

%

14.55

%

14.73

%

14.99

%

12.83

%

12.26

%

14.55

%

12.26

%

15.48

%

15.68

%

15.96

%

14.12

%

13.55

%

15.48

%

13.55

%

34

34

34

34

34

34

34

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

Table 2

June 30,

2026

March 31,

2026

December 31,

2025

September 30, 2025

June 30,

2025

$

161,327

$

151,610

$

118,989

$

122,945

$

108,501

8,787

16,784

25,329

31,841

42,782

132,896

138,562

140,865

161,471

187,565

1,940,536

1,892,174

1,873,533

1,767,193

1,791,516

(18,722

)

(18,329

)

(18,096

)

(17,942

)

(17,989

)

1,921,813

1,873,845

1,855,437

1,749,251

1,773,527

50,145

49,445

49,765

50,268

50,337

755

575

253

533

861

46,619

46,469

46,648

46,482

46,480

12,012

12,392

12,767

13,149

13,546

1,076

1,056

1,003

1,427

1,029

41,153

38,049

40,399

37,041

37,883

$

2,376,584

$

2,328,789

$

2,291,455

$

2,214,408

$

2,262,511

942,633

973,678

913,986

928,958

926,886

413,904

415,132

414,716

382,002

382,788

516,635

503,408

487,032

469,674

541,574

1,873,172

1,892,217

1,815,734

1,780,634

1,851,248

102,570

45,068

88,251

62,663

46,300

73,247

73,181

78,587

100,097

102,209

2,575

2,644

2,962

3,410

4,545

22,402

22,161

20,576

22,451

22,941

2,073,966

2,035,271

2,006,110

1,969,255

2,027,243

137

137

137

122

122

38,683

38,536

38,377

8,406

8,406

264,515

255,670

247,505

237,366

227,900

(717

)

(825

)

(675

)

(741

)

(1,160

)

302,618

293,518

285,344

245,153

235,268

$

2,376,584

$

2,328,789

$

2,291,454

$

2,214,408

$

2,262,511

Table 3

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

$

28,396

$

27,675

$

27,866

$

28,074

$

28,432

$

56,071

$

56,362

832

838

739

929

1,070

1,670

2,045

109

114

114

102

116

223

226

151

147

157

156

148

298

308

666

689

1,082

760

1,093

1,355

2,684

30,154

29,463

29,958

30,021

30,859

59,617

61,625

8,032

8,315

8,441

8,654

9,717

16,347

20,011

40

47

18

55

44

87

75

567

623

689

1,090

1,039

1,190

2,140

8,639

8,985

9,148

9,799

10,800

17,624

22,226

21,515

20,478

20,810

20,222

20,059

41,993

39,399

399

122

463

-

-

521

-

21,116

20,356

20,347

20,222

20,059

41,472

39,399

774

781

779

735

674

1,555

1,329

30

-

44

20

32

30

4

-

107

48

110

-

107

3

977

854

877

846

892

1,831

1,691

315

312

342

306

336

627

644

554

537

577

609

290

1,091

996

2,650

2,591

2,667

2,626

2,224

5,241

4,667

$

5,683

$

5,716

$

5,753

$

5,729

$

5,657

$

11,399

$

11,283

856

843

877

738

916

1,699

1,791

1,099

1,101

1,068

1,103

1,151

2,200

2,358

202

242

234

267

245

444

471

440

209

229

136

286

649

481

942

933

1,001

955

803

1,875

1,751

1,650

1,440

1,461

1,624

1,667

3,090

3,171

-

603

-

-

-

603

-

10,872

11,087

10,623

10,552

10,725

21,959

21,306

12,894

11,860

12,391

12,296

11,558

24,754

22,760

2,678

2,326

2,224

2,829

2,658

5,004

5,168

10,216

9,534

10,167

9,467

8,900

19,750

17,592

-

-

-

-

-

-

-

$

10,216

$

9,534

$

10,167

$

9,467

$

8,900

$

19,750

$

17,592

QTD Average Balances and Yields/Rates (unaudited)

Table 4

Three Months Ended

June 30, 2026

March 31, 2026

December 31, 2025

Average Balance

Interest

Yield/ Rate

Average Balance

Interest

Yield/ Rate

Average Balance

Interest

Yield/ Rate

$

1,902,119

$

28,396

6.0

%

$

1,883,103

$

27,675

5.9

%

$

1,807,127

$

27,866

6.2

%

138,726

1,092

3.1

%

140,223

1,099

3.1

%

152,782

1,010

2.6

%

77,015

666

3.5

%

85,953

689

3.2

%

116,517

1,082

3.7

%

2,117,860

30,154

5.7

%

2,109,279

29,463

5.6

%

2,076,426

29,958

5.8

%

(18,497

)

(18,283

)

(17,954

)

202,388

205,119

190,810

2,301,751

2,296,115

2,249,282

540,531

2,501

1.9

%

575,981

2,809

2.0

%

518,495

2,647

2.0

%

417,468

1,415

1.4

%

412,533

1,425

1.4

%

427,419

1,585

1.5

%

494,379

4,116

3.3

%

479,804

4,081

3.4

%

475,972

4,209

3.5

%

60,270

452

3.0

%

60,522

467

3.1

%

60,781

444

2.9

%

18,050

155

3.4

%

20,355

203

4.0

%

24,953

263

4.2

%

1,530,698

8,639

2.3

%

1,549,195

8,985

2.3

%

1,507,620

9,148

2.4

%

444,701

430,842

434,578

28,723

27,593

47,299

473,424

458,435

481,877

297,631

288,485

259,785

2,301,753

2,296,115

2,249,282

21,515

20,478

20,810

3.44

%

3.27

%

3.40

%

4.06

%

3.88

%

4.01

%

1.69

%

1.75

%

1.82

%

1.75

%

1.82

%

1.88

%

YTD Average Balances and Yields/Rates (unaudited)

Table 5

Six Months Ended

June 30, 2026

June 30, 2025

Average Balance

Interest

Yield/ Rate

Average Balance

Interest

Yield/ Rate

1,892,611

56,071

5.9

%

1,795,846

56,362

6.3

%

139,475

2,191

3.1

%

186,623

2,579

2.8

%

81,484

1,355

3.3

%

128,525

2,684

4.2

%

2,113,570

59,617

5.6

%

2,110,994

61,625

5.8

%

(18,390

)

(18,242

)

203,754

176,107

2,298,934

2,268,859

558,256

5,310

1.9

%

552,539

6,277

2.3

%

415,001

2,840

1.4

%

388,331

2,922

1.5

%

487,092

8,197

3.4

%

557,517

10,813

3.9

%

60,396

919

3.0

%

63,534

74

0.2

%

19,203

358

3.7

%

44,774

2,140

9.6

%

1,539,948

17,624

2.3

%

1,606,695

22,226

2.8

%

437,772

401,935

28,158

36,319

465,930

438,254

293,058

223,912

2,298,936

2,268,861

41,993

39,399

3.35

%

3.07

%

3.97

%

3.73

%

1.72

%

2.11

%

1.78

%

2.21

%

Loan Data (unaudited)

Table 6

As of Quarter Ended

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

Amount

% of Total

Amount

% of Total

Amount

% of Total

Amount

% of Total

Amount

% of Total

$

1,140,480

59

%

$

1,114,516

59

%

$

1,113,440

59

%

$

1,002,192

57

%

$

1,016,229

57

%

201,781

10

%

195,189

10

%

176,688

9

%

201,399

11

%

189,187

11

%

387,142

20

%

383,346

20

%

377,943

20

%

376,769

21

%

376,442

21

%

18,336

1

%

14,511

1

%

14,824

1

%

14,831

1

%

15,290

1

%

179,935

9

%

171,029

9

%

174,248

9

%

154,732

9

%

178,832

10

%

19,535

1

%

19,497

1

%

22,867

1

%

23,651

1

%

22,408

1

%

1,947,209

100

%

1,898,088

100

%

1,880,010

100

%

1,773,574

100

%

1,798,388

100

%

6,673

5,914

6,477

6,381

6,872

18,722

18,329

18,096

17,942

17,989

1,921,813

1,873,845

1,855,437

1,749,251

1,773,527

Nonperforming Assets (Unaudited)

Table 7

As of the Quarter Ended

June 30,

2026

March 31,

2026

December 31,

2025

September 30, 2025

June 30,

2025

$

6,661

$

5,861

$

6,245

$

5,390

$

5,846

-

-

-

-

6

6,661

5,861

6,245

5,390

5,852

755

575

253

533

861

$

7,416

$

6,436

$

6,498

$

5,923

$

6,713

$

18,722

$

18,329

$

18,096

$

17,942

$

17,989

$

1,940,536

$

1,892,174

$

1,873,533

$

1,767,193

$

1,791,516

0.34

%

0.31

%

0.33

%

0.31

%

0.33

%

0.38

%

0.34

%

0.35

%

0.34

%

0.37

%

281

%

313

%

290

%

333

%

307

%

0.96

%

0.97

%

0.97

%

1.02

%

1.00

%

0.28

%

0.25

%

0.27

%

0.24

%

0.26

%

0.31

%

0.28

%

0.28

%

0.27

%

0.30

%

Allowance for credit losses (unaudited)

Table 8

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

$

1,902,136

$

1,883,103

$

1,807,127

$

1,767,379

$

1,794,477

$

1,892,611

$

1,795,846

1,940,536

1,892,174

1,873,533

1,767,193

1,791,516

1,940,536

1,791,516

18,329

18,096

17,942

17,989

18,109

18,096

18,205

-

-

(284

)

-

(18

)

-

(18

)

-

-

-

-

-

-

-

-

-

-

-

(121

)

-

(121

)

-

-

(48

)

-

-

-

(314

)

(18

)

(15

)

(13

)

(186

)

(34

)

(33

)

(51

)

(18

)

(15

)

(345

)

(186

)

(173

)

(33

)

(504

)

-

114

-

108

33

114

43

-

-

-

-

-

-

-

202

1

-

20

26

2

1

18

1

1

7

1

3

2

3

5

11

56

4

15

16

22

7

126

83

139

53

133

288

(11

)

111

(262

)

(47

)

(120

)

100

(216

)

404

122

416

-

-

526

-

$

18,722

$

18,329

$

18,096

$

17,942

$

17,989

$

18,722

$

17,989

0.96

%

0.97

%

0.97

%

1.02

%

1.00

%

0.96

%

1.00

%

0.00

%

0.01

%

-0.01

%

0.00

%

-0.01

%

0.01

%

-0.01

%

Loan Risk Ratings (Unaudited)

Table 9

As of the Quarter Ended

June 30,

2026

March 31,

2026

December 31,

2025

September 30, 2025

June 30,

2025

$

1,131,324

$

1,105,529

$

1,104,532

$

999,788

$

1,012,190

8,835

8,897

8,814

1,776

2,515

321

90

94

628

1,524

$

1,140,480

$

1,114,516

$

1,113,440

$

1,002,192

$

1,016,229

$

201,389

$

194,983

$

176,014

$

201,363

$

189,149

359

171

78

-

-

32

35

596

36

38

$

201,781

$

195,189

$

176,688

$

201,399

$

189,187

$

380,157

$

377,179

$

371,583

$

371,226

$

371,353

631

545

833

838

849

6,354

5,622

5,527

4,705

4,240

$

387,142

$

383,346

$

377,943

$

376,769

$

376,442

$

18,336

$

14,511

$

14,824

$

14,831

$

15,290

-

-

-

-

-

-

-

-

-

-

$

18,336

$

14,511

$

14,824

$

14,831

$

15,290

$

179,002

$

170,093

$

173,324

$

153,819

$

177,969

685

701

793

733

747

248

235

131

180

116

$

179,934

$

171,029

$

174,248

$

154,732

$

178,832

$

19,423

$

19,399

$

22,768

$

23,616

$

22,367

34

44

21

5

6

78

54

79

30

36

$

19,535

$

19,497

$

22,868

$

23,651

$

22,409

$

1,929,632

$

1,881,694

$

1,863,045

$

1,764,643

$

1,788,318

10,543

10,358

10,539

3,352

4,117

7,034

6,036

6,427

5,579

5,954

$

1,947,209

$

1,898,088

$

1,880,011

$

1,773,574

$

1,798,389

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.

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

June 30,

2026

March 31,

2026

December 31, 2025

September 30, 2025

June 30,

2025

June 30,

2026

June 30,

2025

$

12,894

$

11,860

$

12,391

$

12,296

$

11,558

$

24,754

$

22,760

399

122

463

-

-

521

-

$

13,293

$

11,982

$

12,854

$

12,296

$

11,558

$

25,275

$

22,760

$

302,618

$

293,518

$

285,344

$

245,153

$

235,268

302,618

235,268

-

8,511

8,511

8,511

8,511

8,511

8,511

8,511

2,594

2,875

3,164

3,448

3,744

2,594

3,744

$

291,513

$

282,132

$

273,669

$

233,194

$

223,013

$

291,513

$

223,013

$

297,631

$

288,485

$

259,784

$

239,473

$

227,883

$

293,058

$

223,912

11,105

11,386

11,767

11,980

11,997

$

11,245

13,497

-

-

-

-

-

-

2,701

286,526

277,099

248,017

227,493

215,886

281,813

207,714

10,216

9,534

10,167

9,467

8,900

19,750

17,592

14.26

%

13.76

%

16.40

%

16.65

%

16.49

%

14.02

%

16.94

%

$

291,513

$

282,132

$

273,669

$

233,194

$

223,013

$

291,513

$

223,013

13,700,296

13,697,987

13,697,987

12,239,644

12,239,644

13,699,148

12,188,624

$

21.28

$

20.60

$

19.98

$

19.05

$

18.22

$

21.28

$

18.22

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

$

291,513

$

282,132

$

273,669

$

233,194

$

223,013

$

291,513

$

223,013

2,376,584

2,328,789

2,291,455

2,214,408

2,262,511

2,376,584

2,262,511

12,012

12,392

12,767

13,149

13,546

12,012

13,546

2,364,572

2,316,397

2,278,688

2,201,258

2,248,965

2,364,572

2,248,965

12.33

%

12.18

%

12.01

%

10.59

%

9.92

%

12.33

%

9.92

%

$

1,873,172

$

1,892,217

$

1,815,734

$

1,780,634

$

1,851,248

$

1,873,172

1,851,248

107,910

105,717

103,833

101,767

97,844

107,910

97,844

55,375

41,533

47,970

47,970

125,223

55,375

125,223

$

1,709,887

$

1,744,967

$

1,663,931

$

1,630,897

$

1,628,181

$

1,709,887

$

1,628,181

$

10,216

$

9,534

$

10,167

$

9,467

$

8,900

$

19,750

$

17,592

-

603

-

-

302

603

309

-

(133

)

-

-

(76

)

(133

)

(78

)

$

10,216

$

10,004

$

10,167

$

9,467

$

9,126

$

20,220

17,823

$

10,216

$

10,004

$

10,167

$

9,467

$

9,126

$

20,220

$

17,823

13,700,296

13,697,987

13,697,987

12,239,644

12,239,644

13,699,148

12,188,624

$

0.75

$

0.73

$

0.74

$

0.77

$

0.75

$

1.48

$

1.46

$

10,216

$

10,004

$

10,167

$

9,467

$

9,126

$

20,220

$

17,823

2,301,752

2,296,115

2,249,282

2,170,869

2,248,134

2,298,934

2,268,859

1.78

%

1.74

%

1.81

%

1.74

%

1.62

%

1.76

%

1.57

%

$

286,526

$

277,099

$

248,017

$

227,493

$

215,886

$

281,813

$

207,714

10,216

10,004

10,167

9,467

9,126

20,220

17,823

14.26

%

14.44

%

16.40

%

16.65

%

16.91

%

14.35

%

17.16

%

$

21,515

$

20,478

$

20,810

$

20,222

$

20,059

$

41,993

$

39,399

2,650

2,591

2,667

2,626

2,224

5,241

4,667

$

24,165

$

23,069

$

23,477

$

22,848

$

22,283

$

47,234

44,066

10,872

11,087

10,623

10,552

10,725

21,959

21,306

-

603

-

-

302

603

309

10,872

10,484

10,623

10,552

10,423

21,356

20,997

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

%

Contacts:

Philip J. Metheny

Sr. Executive Vice President, Chief Financial Officer

Commercial Bancgroup, Inc.

[email protected]

423-869-5151

Roger Mobley

Executive Vice President, Chief Financial Officer

Commercial Bank

[email protected]

704-648-0185

SOURCE: Commercial Bancgroup, Inc.