CBK 8-K
Commercial Bancgroup, Inc. (CBK)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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Item 2.02 Results of Operations and Financial Condition.
On April 27, 2026, Commercial Bancgroup, Inc., a Tennessee corporation (the “Company”), issued a press release announcing its financial results for the three months ended March 31, 2026 (the “Earnings Release”). A copy of the Earnings Release is included as Exhibit 99.1 to this Current Report on Form 8-K (this “Report”) and is incorporated herein by reference.
In conjunction with the Earnings Release, the Company also made available an investor presentation containing financial results for the three months ended March 31, 2026 (the “Presentation”). The Presentation, which is available under the “Investors” section of the Company’s website, located at https://www.cbtn.com, is included as Exhibit 99.2 to this Report and is incorporated herein by reference. Information on the Company’s website is not, and will not be deemed to be, a part of this Report or incorporated into any other filings the Company may make with the U.S. Securities and Exchange Commission (the “SEC”).
The information contained in this Item 2.02, including the accompanying exhibits, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act.
Item 5.07 Submission of Matters to a Vote of Security Holders.
On April 27, 2026, the Company held its 2026 annual meeting of shareholders (the “Annual Meeting”). At the Annual Meeting, Sam A. Mars III, Aaron A. Robertson, and Martha S. Spurlock were elected to serve on the Board of Directors of the Company (the “Board”) as Class I directors until the 2029 annual meeting of the Company’s shareholders and thereafter until the election and qualification of their successors or a decrease in the number of directors. In addition, at the Annual Meeting, the Company’s shareholders ratified the appointment of Mauldin & Jenkins, LLC as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2026.
The final voting results for each proposal put to a shareholder vote at the Annual Meeting, all of which proposals were described in the Company’s definitive proxy statement on Schedule 14A filed with the SEC on March 31, 2026, are set forth below.
Proposal 1:
Election of Directors: Shareholders voted to elect three Class I directors to serve on the Board until the 2029 annual meeting of the Company’s shareholders and thereafter until the election and qualification of their successors or a decrease in the number of directors.
| Nominee | For | Withhold | Broker Non-Votes | |||
| Sam A. Mars III | 8,889,414 | 2,285,137 | 833,026 | |||
| Aaron A. Robertson | 10,734,738 | 439,813 | 833,026 | |||
| Martha S. Spurlock | 9,610,043 | 1,564,508 | 833,026 |
Proposal 2:
Ratification of the appointment of Mauldin & Jenkins, LLC as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2026.
| For | Against | Abstentions | ||
| 11,977,716 | 29,828 | 33 |
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Item 7.01 Regulation FD Disclosure.
On April 27, 2026, the Board declared a quarterly cash dividend of $0.10 per share of the Company’s common stock (the “Dividend”) payable on June 30, 2026, to shareholders of record as of the close of business on June 15, 2026.
On April 27, 2026, the Board also authorized a stock repurchase plan (the “2026 Repurchase Program”) pursuant to which the Company may repurchase, from time to time, up to an aggregate of $10 million of its outstanding common stock. The 2026 Repurchase Program will expire on April 30, 2027, unless extended by the Board.
Repurchases under the 2026 Repurchase Program may be effected from time to time in the open market, in privately negotiated transactions, or otherwise in compliance with Rule 10b-18 under the Exchange Act, in each case subject to applicable regulatory requirements and other factors that may be considered by the Company in its sole discretion. Repurchases may also be made pursuant to a trading plan under Rule 10b5-1 of the Exchange Act, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions. The exact number of shares of common stock repurchased, the timing of such repurchases, and the price and terms at and on which such repurchases are to be made will be at the discretion of the Company and will comply with all applicable regulatory limitations.
The Company’s press release announcing the Dividend and the 2026 Repurchase Program is attached as Exhibit 99.3 to this Report and is incorporated herein by reference.
The information contained in this Item 7.01, including Exhibit 99.3 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference into any filing of the Company under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit | Description | |
| 99.1 | Earnings release of Commercial Bancgroup, Inc., dated April 27, 2026. | |
| 99.2 | Investor Presentation of Commercial Bancgroup, Inc., dated April 27, 2026. | |
| 99.3 | Press release of Commercial Bancgroup, Inc., dated April 27, 2026, announcing the declaration of a quarterly cash dividend and a stock repurchase plan. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| COMMERCIAL BANCGROUP, INC. | ||
| Date: April 27, 2026 | By: | /s/ Terry L. Lee |
| Terry L. Lee | ||
| President and Chief Executive Officer | ||
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Exhibit 99.1
Commercial Bancgroup, Inc. Announces Results for the First Quarter 2026
HARROGATE, TN –April 27, 2026 – Commercial Bancgroup, Inc. (“Commercial” or the “Company”) (Nasdaq: CBK), the parent company of Commercial Bank (the “Bank”), today announced net income of $9.5 million, or $0.70 per common share, for the first quarter of 2026, compared to net income of $8.7 million, or $0.72 per common share, for the first quarter of 2025. Core (net of any one-time adjustments) net income was 10.0 million, or $0.73 per common share, for the first quarter of 2026, compared to core net income of $8.7 million, or $0.72 per common share, for the first quarter of 2025.
Prior to Commercial’s initial public offering (“IPO”) of it’s 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.
First Quarter 2026 Performance Highlights:
| ● | Net income of $9.5 million or $0.70 per common share; Core net income of $10.0 million or $0.73 per common share (see non-GAAP reconciliation) |
| ● | Return on average assets (“ROAA”) of 1.66%; Core return on average assets of 1.74% share (see non-GAAP reconciliation) |
| ● | Return on average equity (“ROAE”) of 13.22%; Core return on average equity of 13.87% share (see non-GAAP reconciliation) |
| ● | Return on average tangible common equity (“ROATCE”) of 13.76%; Core return on average tangible common equity of 14.44% (see non-GAAP reconciliation) |
| ● | Net interest margin of 3.88%, a decrease of 13 basis points from the fourth quarter of 2025 |
| ● | Core efficiency ratio of 45.45% share (see non-GAAP reconciliation) |
| ● | Total loans increased $18.1 million during the quarter, or 4.0% annualized, from the fourth quarter of 2025 |
| ● | Book value per share increased $0.60, or 11.5% annualized, to $21.43 and tangible book value per share increased $0.62, or 12.4% annualized, to $20.60 at March 31, 2026 from the $20.83 and $19.98, respectively, at December 31, 2025 (see non-GAAP reconciliation) |
| ● | Net charge-offs to average loans of 0.01% and nonperforming assets to total assets of 0.28% |
| ● | Redeemed $6.2 million in principal amount of trust preferred securities |
Year-Over-Year Highlights:
| ● | Net income of $9.5 million or $0.70 per share for the three months ended March 31, 2026, compared to $8.7 million or $0.72per share for the three months ended March 31, 2025. |
| ● | Return on average assets of 1.66% for the three months ended March 31, 2026, compared to 1.52% for the three months ended March 31, 2025. |
| ● | Return on average shareholders’ equity of 13.22% for the three months ended March 31, 2026, compared to 15.81% for the three months ended March 31, 2025. |
| ● | Total operating revenue of $23.1 million for the three months ended March 31, 2026, compared to $21.8 million for the three months ended March 31, 2025. |
| ● | Non-interest expense of $11.1 million for the three months ended March 31, 2026, compared to $10.6 million for the three months ended March 31, 2025. |
| ● | Tangible book value per share of $20.60 per share as of March 31, 2026, compared to $17.45 per share as of March 31, 2025 (see non-GAAP reconciliation). |
| ● | Core Efficiency ratio of 45.5% for the three months ended March 31, 2026, compared to 48.6% for the three months ended March 31, 2025. |
| ● | The Federal Reserve Bank of Atlanta raised the Bank’s Community Reinvestment Act rating from Needs to Improve to Satisfactory. |
Balance Sheet Trends
Total assets were $2.3 billion as of March 31, 2026, compared to $2.3 billion as of March 31, 2025.
Total net loans were $1.9 billion as of March 31, 2026, an increase of $96.8 million, or 5.4%, from March 31, 2025. While the Bank experienced various large loan payoffs from long-term borrowers selling businesses during 2025, the Bank had strong loan growth during the fourth quarter of 2025. Total net loans increased by $18.4 million or 1.0% from $1.9 billion as of December 31, 2025.
As of March 31, 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 11.1%.
Total deposits were $1.9 billion as of March 31, 2026, a decrease of $10.0 million, or 0.5%, from March 31, 2025. This decrease was primarily driven by a $103.8 million reduction in brokered deposits to $41.5 million at March 31, 2026, from $145.3 million at March 31, 2025.
Noninterest bearing demand deposits decreased $16.7 million, or 4.0%, to $403.0 million as of March 31, 2026, from $419.8 million as of March 31, 2025.
Non-brokered deposits were $1.9 billion as of March 31, 2026, an increase of $93.9 million, or 5.3%, from March 31, 2025. This increase was primarily driven by normal customer business cycles.
Asset quality decreased slightly with nonperforming assets to total assets of 0.28% as of March 31, 2026 as compared to 0.24% as of March 31, 2025. The allowance for credit losses to total loans decreased slightly to 0.97% as of March 31, 2026 from 1.01% as of March 31, 2025.
Net Income Before Income Taxes
Net income before income taxes was $11.9 million for the three months ended March 31, 2026, an increase of $0.7 million, or 5.9%, from the three months ended March 31, 2025. The increase was primarily the result of an increase in net interest income after provision for credit losses of $1.0 million or 5.3% an increase in non-interest income of $0.2 million or 6.1% net of an increase of noninterest expense of $0.5 million or 4.8%.
Non-Interest Income
Non-interest income was $2.6 million for the three months ended March 31, 2026, an increase of $0.2 million, or 6.1%, as compared to the three months ended March 31, 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.
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Commercial Bancgroup, Inc.
Financial Tables
| Financial Highlights (unaudited) | Table 1A |
| For the Three Months Ended | As of and for the Twelve Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands except per share amounts) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2024 | |||||||||||||||||||||
| Selected Operating Data: | ||||||||||||||||||||||||||||
| Interest and Dividend Income | $ | 29,463 | $ | 29,958 | $ | 30,021 | $ | 30,859 | $ | 30,766 | $ | 121,604 | $ | 123,213 | ||||||||||||||
| Interest Expense | 8,985 | 9,148 | 9,799 | 10,800 | 11,426 | 41,173 | 45,629 | |||||||||||||||||||||
| Net Interest Income | 20,478 | 20,810 | 20,222 | 20,059 | 19,340 | 80,431 | 77,584 | |||||||||||||||||||||
| Provision for Credit Losses | 122 | 463 | - | - | - | 463 | 1,829 | |||||||||||||||||||||
| Net Interest Income After | ||||||||||||||||||||||||||||
| Provision for Credit Losses | 20,356 | 20,347 | 20,222 | 20,059 | 19,340 | 79,968 | 75,755 | |||||||||||||||||||||
| Noninterest Income | 2,591 | 2,667 | 2,626 | 2,194 | 2,443 | 9,930 | 10,878 | |||||||||||||||||||||
| Noninterest Expense | 11,087 | 10,623 | 10,552 | 10,725 | 10,581 | 42,480 | 46,061 | |||||||||||||||||||||
| Income Before Income Taxes | 11,860 | 12,391 | 12,296 | 11,528 | 11,202 | 47,418 | 40,572 | |||||||||||||||||||||
| Provision for Income Taxes | 2,326 | 2,224 | 2,829 | 2,658 | 2,510 | 10,221 | 8,886 | |||||||||||||||||||||
| Net Income | 9,534 | 10,167 | 9,467 | 8,870 | 8,692 | 37,197 | 31,686 | |||||||||||||||||||||
| Less: Net Income Attributable to Noncontrolling Interest | - | - | - | - | - | - | 276 | |||||||||||||||||||||
| Net Income attributable to Commercial Bancgroup, Inc. | 9,534 | 10,167 | 9,467 | 8,870 | 8,692 | 37,197 | 31,410 | |||||||||||||||||||||
| Add: Non-recurring Expense Net of Taxes | 470 | - | - | - | - | 231 | - | |||||||||||||||||||||
| Core Net Income (1) | 10,004 | 10,167 | 9,467 | 8,870 | 8,692 | 37,428 | 31,410 | |||||||||||||||||||||
| (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 Twelve Months Ended | |||||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Share and Per Share Data: | ||||||||||||||||||||||||||||
| Basic earnings per share | $ | 0.70 | $ | 0.74 | $ | 0.77 | $ | 0.72 | $ | 0.72 | $ | 2.95 | $ | 2.58 | ||||||||||||||
| Diluted earnings per share | $ | 0.69 | $ | 0.74 | $ | 0.77 | $ | 0.72 | $ | 0.72 | $ | 2.95 | $ | 2.54 | ||||||||||||||
| Book value per share | $ | 21.43 | $ | 20.83 | $ | 20.03 | $ | 19.22 | $ | 18.48 | $ | 20.83 | $ | 18.18 | ||||||||||||||
| Tangible book value per share (1) | $ | 20.60 | $ | 19.98 | $ | 19.05 | $ | 18.22 | $ | 17.45 | $ | 19.98 | $ | 17.11 | ||||||||||||||
| Shares of common stock outstanding | 13,697,987 | 13,697,987 | 12,239,644 | 12,239,644 | 12,239,644 | 13,697,987 | 12,113,114 | |||||||||||||||||||||
| Weighted average diluted shares outstanding | 13,746,198 | 13,704,030 | 12,240,568 | 12,239,644 | 12,137,013 | 12,611,170 | 12,367,248 | |||||||||||||||||||||
| (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 Twelve Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2024 | |||||||||||||||||||||
| Selected Balance Sheet Data: | ||||||||||||||||||||||||||||
| Total assets | $ | 2,328,789 | $ | 2,291,455 | $ | 2,214,408 | $ | 2,262,511 | $ | 2,266,878 | $ | 2,291,455 | $ | 2,301,211 | ||||||||||||||
| Securities available-for-sale at fair value | 42,175 | 43,137 | 29,556 | 30,113 | 48,830 | 43,137 | 47,938 | |||||||||||||||||||||
| Securities held-to-maturity, at carrying value, net of allowance for credit losses | 96,387 | 97,728 | 131,915 | 157,452 | 140,019 | 97,728 | 128,217 | |||||||||||||||||||||
| Gross loans less deferred fees and discounts | 1,892,174 | 1,873,533 | 1,767,193 | 1,791,516 | 1,795,178 | 1,873,533 | 1,806,997 | |||||||||||||||||||||
| Allowance for credit losses | 18,329 | 18,096 | 17,942 | 17,989 | 18,109 | 18,096 | 18,205 | |||||||||||||||||||||
| Goodwill and other intangible assets | 12,392 | 12,767 | 13,149 | 13,546 | 13,938 | 12,767 | 14,339 | |||||||||||||||||||||
| Total deposits | 1,892,217 | 1,815,734 | 1,780,634 | 1,851,248 | 1,902,206 | 1,815,734 | 1,938,597 | |||||||||||||||||||||
| Core deposits (1) | 1,733,718 | 1,665,470 | 1,631,921 | 1,628,816 | 1,659,301 | 1,665,470 | 1,669,380 | |||||||||||||||||||||
| Other borrowings | 118,248 | 166,838 | 162,760 | 148,509 | 109,090 | 166,838 | 109,165 | |||||||||||||||||||||
| Total Shareholders’ equity | 293,518 | 285,344 | 245,153 | 235,268 | 226,179 | 285,344 | 220,256 | |||||||||||||||||||||
| (1) | Considered non-GAAP financial measure - See “Non-GAAP Financial Measures” and reconciliation of non-GAAP financial measures at table 10 |
| Financial Highlights (unaudited) | Table 1B |
| As of and for the Three Months Ended | As of and for the Twelve Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2024 | |||||||||||||||||||||
| Performance Ratios: | ||||||||||||||||||||||||||||
| Pre-tax pre-provision net revenue (PPNR) (1) | $ | 11,982 | $ | 12,854 | $ | 12,296 | $ | 11,528 | $ | 11,202 | $ | 47,880 | $ | 42,401 | ||||||||||||||
| Return on average assets (ROAA) | 1.66 | 1.76 | 1.69 | 1.57 | 1.52 | 1.61 | 1.40 | |||||||||||||||||||||
| Return on average equity (ROAE) | 13.22 | 15.46 | 15.81 | 15.57 | 15.81 | 15.60 | 15.30 | |||||||||||||||||||||
| Return on average tangible common equity (ROATCE) (1) | 13.76 | 16.40 | 16.65 | 16.43 | 16.75 | 16.55 | 16.49 | |||||||||||||||||||||
| Net interest rate spread | 3.27 | 3.34 | 3.32 | 3.11 | 2.98 | 3.20 | 3.05 | |||||||||||||||||||||
| Net interest margin | 3.88 | 4.01 | 4.02 | 3.84 | 3.63 | 3.87 | 3.75 | |||||||||||||||||||||
| Cost of Funds | 1.82 | 1.88 | 2.07 | 2.18 | 2.25 | 2.10 | 2.31 | |||||||||||||||||||||
| Efficiency ratio | 45.45 | 45.24 | 46.19 | 48.20 | 48.57 | 47.01 | 48.92 | |||||||||||||||||||||
| Noninterest income to average assets | 0.45 | 0.47 | 0.48 | 0.39 | 0.43 | 0.44 | 0.49 | |||||||||||||||||||||
| Noninterest expense to average assets | 1.93 | 1.87 | 1.94 | 1.91 | 1.85 | 1.90 | 2.08 | |||||||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 1.36 | 1.39 | 1.36 | 1.31 | 1.30 | 1.34 | 1.32 | |||||||||||||||||||||
| Average equity to average total assets | 0.13 | 0.12 | 0.11 | 0.10 | 0.10 | 0.11 | 0.09 | |||||||||||||||||||||
| (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 Twelve Months Ended | |||||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Asset Quality Data: | ||||||||||||||||||||||||||||
| Net charge-offs to average loans | 0.01 | % | 0.01 | % | 0.00 | % | 0.01 | % | 0.01 | % | 0.03 | % | 0.01 | % | ||||||||||||||
| Total allowance for credit losses to total loans | 0.97 | % | 0.97 | % | 1.02 | % | 1.00 | % | 1.01 | % | 0.97 | % | 1.01 | % | ||||||||||||||
| Total allowance for credit losses to nonperforming loans | 313 | % | 290 | % | 333 | % | 307 | % | 375 | % | 313 | % | 375 | % | ||||||||||||||
| Nonperforming loans to gross loans | 0.31 | % | 0.33 | % | 0.31 | % | 0.33 | % | 0.27 | % | 0.31 | % | 0.27 | % | ||||||||||||||
| Nonperforming assets to total assets | 0.28 | % | 0.28 | % | 0.27 | % | 0.30 | % | 0.24 | % | 0.28 | % | 0.24 | % | ||||||||||||||
| As of and for the Three Months Ended | As of and for the Twelve Months Ended | |||||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Balance Sheet and Capital Ratios (Commercial Bancgroup, Inc.): | ||||||||||||||||||||||||||||
| Loan-to-deposit ratio | 99.03 | % | 102.19 | % | 99.25 | % | 96.77 | % | 94.37 | % | 102.19 | % | 93.21 | % | ||||||||||||||
| Noninterest bearing deposits to total deposits | 21.22 | % | 21.91 | % | 22.39 | % | 22.53 | % | 22.05 | % | 21.91 | % | 20.46 | % | ||||||||||||||
| Total shareholders’equity to total assets | 12.60 | % | 12.45 | % | 11.07 | % | 10.40 | % | 9.98 | % | 12.45 | % | 9.57 | % | ||||||||||||||
| Tangible common equity to tangible assets (1) | 12.18 | % | 12.01 | % | 10.59 | % | 9.92 | % | 9.48 | % | 12.01 | % | 9.07 | % | ||||||||||||||
| Tier 1 leverage ratio | 12.32 | % | 12.19 | % | 11.03 | % | 10.22 | % | 9.63 | % | 12.19 | % | 9.51 | % | ||||||||||||||
| Common equity tier 1 ratio | 14.73 | % | 14.99 | % | 12.83 | % | 12.26 | % | 11.62 | % | 14.99 | % | 11.11 | % | ||||||||||||||
| Total risk-based capital ratio | 15.68 | % | 15.96 | % | 14.12 | % | 13.55 | % | 12.90 | % | 15.96 | % | 12.37 | % | ||||||||||||||
| Other | ||||||||||||||||||||||||||||
| Number of branches | 34 | 34 | 34 | 34 | 34 | 34 | 34 | |||||||||||||||||||||
| Number of full-time equivalent employees | 287 | 287 | 287 | 289 | 284 | 287 | 279 | |||||||||||||||||||||
| (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) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and due from banks | $ | 151,610 | $ | 118,989 | $ | 122,945 | $ | 108,501 | $ | 113,190 | ||||||||||
| Federal funds sold | 16,784 | 25,329 | 31,841 | 42,782 | 37,303 | |||||||||||||||
| Investment securities | 138,562 | 140,865 | 161,471 | 187,565 | 188,849 | |||||||||||||||
| Gross loans less deferred fees and discounts | 1,892,174 | 1,873,533 | 1,767,193 | 1,791,516 | 1,795,178 | |||||||||||||||
| Allowance for credit losses | (18,329 | ) | (18,096 | ) | (17,942 | ) | (17,989 | ) | (18,109 | ) | ||||||||||
| Loans, net of alloawance for credit losses | 1,873,845 | 1,855,437 | 1,749,251 | 1,773,527 | 1,777,069 | |||||||||||||||
| Premises and equipment, net | 49,445 | 49,765 | 50,268 | 50,337 | 50,038 | |||||||||||||||
| Foreclosed assets held for sale, net | 575 | 253 | 533 | 861 | 565 | |||||||||||||||
| Bank owned life insurance | 46,469 | 46,648 | 46,482 | 46,480 | 46,191 | |||||||||||||||
| Goodwill and other intangible assets | 12,392 | 12,767 | 13,149 | 13,546 | 13,938 | |||||||||||||||
| Deferred tax asset | 1,056 | 1,003 | 1,427 | 1,029 | 1,029 | |||||||||||||||
| Other | 38,049 | 40,399 | 37,041 | 37,883 | 38,706 | |||||||||||||||
| Total Assets | $ | 2,328,789 | $ | 2,291,455 | $ | 2,214,408 | $ | 2,262,511 | $ | 2,266,878 | ||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Deposits | ||||||||||||||||||||
| Demand | 973,678 | 913,986 | 928,958 | 926,886 | 960,915 | |||||||||||||||
| Savings, NOW and money market | 415,132 | 414,716 | 382,002 | 382,788 | 390,491 | |||||||||||||||
| Time | 503,408 | 487,032 | 469,674 | 541,574 | 550,800 | |||||||||||||||
| Total deposits | 1,892,217 | 1,815,734 | 1,780,634 | 1,851,248 | 1,902,206 | |||||||||||||||
| Short-term borrowings | 45,068 | 88,251 | 62,663 | 46,300 | 5,900 | |||||||||||||||
| Long-term debt | 73,181 | 78,587 | 100,097 | 102,209 | 103,190 | |||||||||||||||
| Interest Payable | 2,644 | 2,962 | 3,410 | 4,545 | 5,157 | |||||||||||||||
| Other Liabilities | 22,161 | 20,576 | 22,451 | 22,941 | 24,246 | |||||||||||||||
| Total Liabilites | 2,035,271 | 2,006,110 | 1,969,255 | 2,027,243 | 2,040,699 | |||||||||||||||
| Shareholders’ Equity | ||||||||||||||||||||
| Common stock | 137 | 137 | 122 | 122 | 122 | |||||||||||||||
| Additional paid-in capital | 38,536 | 38,377 | 8,406 | 8,406 | 8,406 | |||||||||||||||
| Retained earnings | 255,670 | 247,505 | 237,366 | 227,900 | 219,000 | |||||||||||||||
| Accumulated other comprehensive loss | (825 | ) | (675 | ) | (741 | ) | (1,160 | ) | (1,349 | ) | ||||||||||
| Total Shareholders’equity | 293,518 | 285,344 | 245,153 | 235,268 | 226,179 | |||||||||||||||
| Total liabilities and shareholders’ equity | $ | 2,328,789 | $ | 2,291,454 | $ | 2,214,408 | $ | 2,262,511 | $ | 2,266,878 | ||||||||||
6
| Statement of Operations (unaudited) | Table 3 |
| For the Three Months Ended | As of and for the Twelve Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2024 | |||||||||||||||||||||
| Interest and Dividend Income | ||||||||||||||||||||||||||||
| Loans, including fees | $ | 27,675 | $ | 27,866 | $ | 28,074 | $ | 28,432 | $ | 27,930 | $ | 112,301 | $ | 113,391 | ||||||||||||||
| Debt securities-taxable | 838 | 739 | 929 | 1,070 | 975 | 3,714 | 2,679 | |||||||||||||||||||||
| Debt securities-tax-exempt | 114 | 114 | 102 | 116 | 110 | 442 | 368 | |||||||||||||||||||||
| Dividends on restricted stock | 147 | 157 | 156 | 148 | 160 | 621 | 700 | |||||||||||||||||||||
| Interest-bearing deposits | 689 | 1,082 | 760 | 1,093 | 1,591 | 4,526 | 6,075 | |||||||||||||||||||||
| Total interest and dividend income | 29,463 | 29,958 | 30,021 | 30,859 | 30,766 | 121,604 | 123,213 | |||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||||
| Deposits | 8,315 | 8,441 | 8,654 | 9,717 | 10,294 | 37,107 | 40,352 | |||||||||||||||||||||
| Short-term borrowings | 47 | 18 | 55 | 44 | 31 | 148 | 205 | |||||||||||||||||||||
| Long-term debt | 623 | 689 | 1,090 | 1,039 | 1,101 | 3,919 | 5,072 | |||||||||||||||||||||
| Total interest expense | 8,985 | 9,148 | 9,799 | 10,800 | 11,426 | 41,174 | 45,629 | |||||||||||||||||||||
| Net interest income | 20,478 | 20,810 | 20,222 | 20,059 | 19,340 | 80,430 | 77,584 | |||||||||||||||||||||
| Provision for credit losses | 122 | 463 | - | - | - | 463 | 1,829 | |||||||||||||||||||||
| Net interest income after provision for credit losses | 20,356 | 20,347 | 20,222 | 20,059 | 19,340 | 79,967 | 75,755 | |||||||||||||||||||||
| Noninterest Income | ||||||||||||||||||||||||||||
| Customer service fees | 781 | 779 | 735 | 674 | 655 | 2,844 | 3,041 | |||||||||||||||||||||
| Net gains on sales of premises and equipment | - | 44 | 20 | 2 | (28 | ) | 38 | 759 | ||||||||||||||||||||
| Net gains on sales of foreclosed assets | 107 | 48 | 110 | 1 | 3 | 161 | 153 | |||||||||||||||||||||
| ATM fees | 854 | 877 | 846 | 891 | 799 | 3,413 | 3,281 | |||||||||||||||||||||
| Increase in BOLI | 312 | 342 | 306 | 336 | 308 | 1,292 | 1,199 | |||||||||||||||||||||
| Other | 537 | 577 | 609 | 290 | 706 | 2,182 | 2,445 | |||||||||||||||||||||
| Total noninterest income | 2,591 | 2,667 | 2,626 | 2,194 | 2,443 | 9,930 | 10,878 | |||||||||||||||||||||
| Statement of Operations (unaudited) | Table 3 |
| For the Three Months Ended | As of and for the Twelve Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2024 | |||||||||||||||||||||
| Noninterest Expense | ||||||||||||||||||||||||||||
| Salaries and employee benefits | $ | 5,716 | $ | 5,753 | $ | 5,729 | $ | 5,657 | $ | 5,626 | $ | 22,764 | $ | 24,873 | ||||||||||||||
| Occupancy | 843 | 877 | 738 | 774 | 875 | 3,264 | 3,786 | |||||||||||||||||||||
| Data processing | 1,101 | 1,068 | 1,103 | 1,151 | 1,207 | 4,530 | 4,235 | |||||||||||||||||||||
| Deposit insurance premiums | 242 | 234 | 267 | 245 | 226 | 972 | 1,129 | |||||||||||||||||||||
| Professional fees | 209 | 229 | 136 | 286 | 195 | 846 | 1,017 | |||||||||||||||||||||
| Depreciation and amortization | 933 | 1,001 | 955 | 803 | 948 | 3,706 | 4,109 | |||||||||||||||||||||
| Other | 1,440 | 1,461 | 1,624 | 1,809 | 1,504 | 6,398 | 6,912 | |||||||||||||||||||||
| Loss on retirement of debt | 603 | - | - | - | - | - | - | |||||||||||||||||||||
| Total noninterest expense | 11,087 | 10,623 | 10,552 | 10,725 | 10,581 | 42,480 | 46,061 | |||||||||||||||||||||
| Income before income taxes | 11,860 | 12,391 | 12,296 | 11,528 | 11,202 | 47,417 | 40,572 | |||||||||||||||||||||
| Provision for income taxes | 2,326 | 2,224 | 2,829 | 2,658 | 2,510 | 10,221 | 8,886 | |||||||||||||||||||||
| Net Income | 9,534 | 10,167 | 9,467 | 8,870 | 8,692 | 37,196 | 31,686 | |||||||||||||||||||||
| Less: Net Income Attributable to Noncontrolling Interest | - | - | - | - | - | - | 276 | |||||||||||||||||||||
| Net Income attributable to Commercial Bancgroup, Inc. | $ | 9,534 | $ | 10,167 | $ | 9,467 | $ | 8,870 | $ | 8,692 | $ | 37,196 | $ | 31,410 | ||||||||||||||
7
| QTD Average Balances and Yields/Rates (unaudited) | Table 4 |
| Three Months Ended | ||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | |||||||||||||||||||||||
| (dollars in thousands) | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | ||||||||||||||||||
| Interest Earning Assets | ||||||||||||||||||||||||
| Gross loans, net of unearned income | $ | 1,883,103 | $ | 27,675 | 5.9 | % | $ | 1,807,127 | $ | 27,866 | 6.2 | % | ||||||||||||
| Investment securities | 140,223 | 1,099 | 3.1 | % | 152,782 | 1,011 | 2.6 | % | ||||||||||||||||
| Other interest-earning assets | 85,953 | 689 | 3.2 | % | 116,517 | 1,081 | 3.7 | % | ||||||||||||||||
| Total interest-earning assets | 2,109,279 | 29,463 | 5.6 | % | 2,076,426 | 29,958 | 5.8 | % | ||||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||
| Allowance for credit losses | (18,283 | ) | (17,954 | ) | ||||||||||||||||||||
| Noninterest-earning assets | 205,119 | 190,810 | ||||||||||||||||||||||
| Total Assets | 2,296,115 | 2,249,282 | ||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest-bearing DDAs | 575,981 | 2,809 | 1.95 | % | 518,495 | 2,647 | 2.0 | % | ||||||||||||||||
| NOW, savings and MMDA deposits | 412,533 | 1,425 | 1.38 | % | 427,419 | 1,585 | 1.5 | % | ||||||||||||||||
| Time Deposits | 479,804 | 4,081 | 3.40 | % | 475,972 | 4,209 | 3.5 | % | ||||||||||||||||
| Federal Home Loan bank advances | 60,522 | 467 | 3.09 | % | 60,781 | 444 | 2.9 | % | ||||||||||||||||
| Other borrowings | 20,355 | 203 | 3.99 | % | 24,953 | 263 | 4.2 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,549,195 | 8,985 | 2.32 | % | 1,507,620 | 9,148 | 2.4 | % | ||||||||||||||||
| Noninterest bearing liabilites: | ||||||||||||||||||||||||
| Noninterest bearing deposits | 430,842 | 434,578 | ||||||||||||||||||||||
| Other liabilities | 27,593 | 47,299 | ||||||||||||||||||||||
| Total noninterest bearing liabilities | 458,435 | 481,877 | ||||||||||||||||||||||
| Shareholders’ equity | 288,485 | 259,785 | ||||||||||||||||||||||
| Total liabilities and shareholders’s equity | 2,296,115 | 2,249,282 | ||||||||||||||||||||||
| Net interest income | 20,478 | 20,810 | ||||||||||||||||||||||
| Net interest spread | 3.27 | % | 3.32 | % | ||||||||||||||||||||
| Net interest margin | 3.88 | % | 4.02 | % | ||||||||||||||||||||
| Cost interest bearing deposits | 2.32 | % | 2.37 | % | ||||||||||||||||||||
| Cost of funds | 1.82 | % | 2.43 | % | ||||||||||||||||||||
8
| YTD Average Balances and Yields/Rates (unaudited) | Table 5 |
| Three Months Ended | ||||||||||||||||||||||||
| March 31, 2026 | March 31, 2025 | |||||||||||||||||||||||
| (dollars in thousands) | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | ||||||||||||||||||
| Interest Earning Assets | ||||||||||||||||||||||||
| Gross loans, net of unearned income | 1,883,103 | 27,675 | 5.9 | % | 1,794,477 | 27,930 | 6.2 | % | ||||||||||||||||
| Investment securities | 140,223 | 1,099 | 3.1 | % | 186,604 | 1,245 | 2.7 | % | ||||||||||||||||
| Other interest-earning assets | 85,953 | 689 | 3.2 | % | 150,891 | 1,591 | 4.2 | % | ||||||||||||||||
| Total interest-earning assets | 2,109,279 | 29,463 | 5.6 | % | 2,131,972 | 30,766 | 5.8 | % | ||||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||
| Allowance for credit losses | (18,283 | ) | (18,109 | ) | ||||||||||||||||||||
| Noninterest-earning assets | 205,119 | 176,014 | ||||||||||||||||||||||
| Total Assets | 2,296,115 | 2,289,877 | ||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest-bearing DDAs | 575,981 | 2,809 | 2.0 | % | 581,411 | 3,326 | 2.3 | % | ||||||||||||||||
| NOW, savings and MMDA deposits | 412,533 | 1,425 | 1.4 | % | 383,685 | 1,435 | 1.5 | % | ||||||||||||||||
| Time Deposits | 479,804 | 4,081 | 3.4 | % | 564,710 | 5,533 | 3.9 | % | ||||||||||||||||
| Federal Home Loan bank advances | 60,522 | 467 | 3.1 | % | 64,361 | 442 | 2.7 | % | ||||||||||||||||
| Other borrowings | 20,355 | 203 | 4.0 | % | 43,951 | 690 | 6.3 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,549,195 | 8,985 | 2.3 | % | 1,638,118 | 11,426 | 2.8 | % | ||||||||||||||||
| Noninterest bearing liabilites: | ||||||||||||||||||||||||
| Noninterest bearing deposits | 430,842 | 395,414 | ||||||||||||||||||||||
| Other liabilities | 27,593 | 36,110 | ||||||||||||||||||||||
| Total noninterest bearing liabilities | 458,435 | 431,524 | ||||||||||||||||||||||
| Shareholders’ equity | 288,485 | 219,940 | ||||||||||||||||||||||
| Total liabilities and shareholders’s equity | 2,296,115 | 2,289,582 | ||||||||||||||||||||||
| Net interest income | 20,478 | 19,340 | ||||||||||||||||||||||
| Net interest spread | 3.27 | % | 2.98 | % | ||||||||||||||||||||
| Net interest margin | 3.88 | % | 3.63 | % | ||||||||||||||||||||
| Cost of total deposits | 2.32 | % | 2.79 | % | ||||||||||||||||||||
| Cost of total funding | 1.82 | % | 2.25 | % | ||||||||||||||||||||
9
| Loan Data (unaudited) | Table 6 |
| As of Quarter Ended | ||||||||||||||||||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||||||
| Real Estate Loans | ||||||||||||||||||||||||||||||||||||||||
| Commercial | $ | 1,114,516 | 58.7 | % | $ | 1,113,440 | 59.2 | % | $ | 1,002,192 | 56.5 | % | $ | 1,016,229 | 57 | % | $ | 1,029,444 | 57 | % | ||||||||||||||||||||
| Construction and land development | 195,189 | 10.3 | % | 176,688 | 9.4 | % | 201,399 | 11 | % | 189,187 | 11 | % | 180,066 | 10 | % | |||||||||||||||||||||||||
| Residential | 383,346 | 20 | % | 377,943 | 20 | % | 376,769 | 21 | % | 376,442 | 21 | % | 372,338 | 21 | % | |||||||||||||||||||||||||
| Other | 14,511 | 1 | % | 14,824 | 1 | % | 14,831 | 1 | % | 15,290 | 1 | % | 16,406 | 1 | % | |||||||||||||||||||||||||
| Commercial | 171,029 | 9 | % | 174,248 | 9 | % | 154,732 | 9 | % | 178,832 | 10 | % | 182,186 | 10 | % | |||||||||||||||||||||||||
| Consumer | 12,260 | 1 | % | 15,417 | 1 | % | 16,009 | 1 | % | 14,636 | 1 | % | 14,908 | 1 | % | |||||||||||||||||||||||||
| Other | 7,237 | 0 | % | 7,450 | 0 | % | 7,642 | 0 | % | 7,772 | 0 | % | 7,505 | 0 | % | |||||||||||||||||||||||||
| Total loans | 1,898,088 | 100 | % | 1,880,010 | 100 | % | 1,773,574 | 100 | % | 1,798,388 | 100 | % | 1,802,853 | 100 | % | |||||||||||||||||||||||||
| Deferred loan fees and discounts | 5,914 | 6,477 | 6,381 | 6,872 | 7,675 | |||||||||||||||||||||||||||||||||||
| Allowance for credit Losses | 18,329 | 18,096 | 17,942 | 17,989 | 18,109 | |||||||||||||||||||||||||||||||||||
| Loans, net | 1,873,845 | 1,855,437 | 1,749,251 | 1,773,527 | 1,777,069 | |||||||||||||||||||||||||||||||||||
10
| Nonperforming Assets (unaudited) | Table 7 |
| As of the Quarter Ended | ||||||||||||||||||||
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||
| Nonaccrual loans | $ | 5,861 | $ | 6,245 | $ | 5,390 | $ | 5,846 | $ | 4,808 | ||||||||||
| Past due loans 90 days and still accruing | - | - | - | 6 | 20 | |||||||||||||||
| Total nonperforming loans | 5,861 | 6,245 | 5,390 | 5,852 | 4,828 | |||||||||||||||
| Other real estate owned | 575 | 253 | 533 | 861 | 565 | |||||||||||||||
| Total nonperforming assets | $ | 6,436 | $ | 6,498 | $ | 5,923 | $ | 6,713 | $ | 5,393 | ||||||||||
| Allowance for credit losses | $ | 18,329 | $ | 18,096 | $ | 17,942 | $ | 17,989 | $ | 18,109 | ||||||||||
| Total loans outstanding at end of period net of deferred loan fees and discounts | $ | 1,892,174 | $ | 1,873,533 | $ | 1,767,193 | $ | 1,791,516 | $ | 1,795,178 | ||||||||||
| Nonperforming loans to total loans | 0.31 | % | 0.33 | % | 0.31 | % | 0.33 | % | 0.27 | % | ||||||||||
| Nonperforming assets to total loans and OREO | 0.34 | % | 0.35 | % | 0.34 | % | 0.37 | % | 0.30 | % | ||||||||||
| Allowance for credit losses to nonperforming loans | 313 | % | 290 | % | 333 | % | 307 | % | 375 | % | ||||||||||
| Allowance for credit losses to total loans | 0.97 | % | 0.97 | % | 1.02 | % | 1.00 | % | 1.01 | % | ||||||||||
| Nonaccrual loans to total assets | 0.25 | % | 0.27 | % | 0.24 | % | 0.26 | % | 0.21 | % | ||||||||||
11
| Allowance for credit losses (unaudited) | Table 8 |
| As of and for the Three Months Ended | As of and for the Twelve Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2024 | |||||||||||||||||||||
| Average loans outstanding | $ | 1,883,103 | $ | 1,807,127 | $ | 1,767,379 | $ | 1,795,846 | $ | 1,794,477 | $ | 1,791,550 | $ | 1,738,433 | ||||||||||||||
| Total loans outstanding at end of period net of deferred loan fees and discounts | 1,892,174 | 1,873,533 | 1,767,193 | 1,791,516 | 1,795,178 | 1,873,533 | 1,806,997 | |||||||||||||||||||||
| ACL balance, beginning of period | 18,096 | 17,942 | 17,989 | 18,109 | 18,205 | 18,205 | 16,635 | |||||||||||||||||||||
| Charge-offs: | ||||||||||||||||||||||||||||
| Commercial real estate | - | (284 | ) | - | (18 | ) | - | (301 | ) | (49 | ) | |||||||||||||||||
| Construction and land development | - | - | - | - | ||||||||||||||||||||||||
| Residential real estate | - | - | - | (121 | ) | - | (121 | ) | (52 | ) | ||||||||||||||||||
| Commercial | - | (48 | ) | - | - | (314 | ) | (362 | ) | (177 | ) | |||||||||||||||||
| Consumer and other | (15 | ) | (13 | ) | (186 | ) | (34 | ) | (17 | ) | (251 | ) | (151 | ) | ||||||||||||||
| Total charge-offs | (15 | ) | (345 | ) | (186 | ) | (173 | ) | (331 | ) | (1,035 | ) | (429 | ) | ||||||||||||||
| Recoveries: | ||||||||||||||||||||||||||||
| Commercial real estate | 114 | - | 108 | 33 | 10 | 151 | 75 | |||||||||||||||||||||
| Construction and land development | - | - | - | - | 202 | 201 | ||||||||||||||||||||||
| Residential real estate | - | 20 | 26 | 2 | 16 | 64 | 9 | |||||||||||||||||||||
| Commercial | 1 | 7 | 1 | 3 | - | 11 | 54 | |||||||||||||||||||||
| Consumer and other | 11 | 56 | 4 | 15 | 7 | 83 | 32 | |||||||||||||||||||||
| Total recoveries | 126 | 83 | 139 | 53 | 235 | 510 | 170 | |||||||||||||||||||||
| Net (charge-offs) recoveries | 111 | (262 | ) | (47 | ) | (120 | ) | (96 | ) | (525 | ) | (259 | ) | |||||||||||||||
| Provision for credit losses | 122 | 416 | - | - | - | 416 | 1,829 | |||||||||||||||||||||
| ACL balance at end of period | $ | 18,329 | $ | 18,096 | $ | 17,942 | $ | 17,989 | $ | 18,109 | $ | 18,096 | $ | 18,205 | ||||||||||||||
| Ratio of allowance to end of period loans | 0.97 | % | 0.97 | % | 1.02 | % | 1.00 | % | 1.01 | % | 0.97 | % | 1.01 | % | ||||||||||||||
| Ratio of net (charge-offs) recoveries to average loans | 0.01 | % | -0.01 | % | 0.00 | % | -0.01 | % | -0.01 | % | -0.03 | % | -0.01 | % | ||||||||||||||
12
| Loan Risk Ratings (unaudited) | Table 9 |
| As of the Quarter Ended | ||||||||||||||||||||
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||
| Real Estate Loans | ||||||||||||||||||||
| Commercial | ||||||||||||||||||||
| Pass | $ | 1,105,529 | $ | 1,104,532 | $ | 999,788 | $ | 1,012,190 | $ | 1,023,884 | ||||||||||
| Special mention | 8,897 | 8,814 | 1,776 | 2,515 | 4,182 | |||||||||||||||
| Substandard | 90 | 94 | 628 | 1,524 | 1,378 | |||||||||||||||
| Total Commercial | $ | 1,114,516 | $ | 1,113,440 | $ | 1,002,192 | $ | 1,016,229 | $ | 1,029,444 | ||||||||||
| Construction and land development | ||||||||||||||||||||
| Pass | $ | 194,983 | $ | 176,014 | $ | 201,363 | $ | 189,149 | $ | 180,066 | ||||||||||
| Special mention | 171 | 78 | - | - | - | |||||||||||||||
| Substandard | 35 | 596 | 36 | 38 | - | |||||||||||||||
| Total Construction and land development | $ | 195,189 | $ | 176,688 | $ | 201,399 | $ | 189,187 | $ | 180,066 | ||||||||||
| Residential | ||||||||||||||||||||
| Pass | $ | 377,179 | $ | 371,583 | $ | 371,226 | $ | 371,353 | $ | 367,216 | ||||||||||
| Special mention | 545 | 833 | 838 | 849 | 854 | |||||||||||||||
| Substandard | 5,622 | 5,527 | 4,705 | 4,240 | 4,268 | |||||||||||||||
| Total Residential | $ | 383,346 | $ | 377,943 | $ | 376,769 | $ | 376,442 | $ | 372,338 | ||||||||||
| Other | ||||||||||||||||||||
| Pass | $ | 14,511 | $ | 14,824 | $ | 14,831 | $ | 15,290 | $ | 16,406 | ||||||||||
| Special mention | - | - | - | - | ||||||||||||||||
| Substandard | - | - | - | - | - | |||||||||||||||
| Total Other | $ | 14,511 | $ | 14,824 | $ | 14,831 | $ | 15,290 | $ | 16,406 | ||||||||||
| Commercial | ||||||||||||||||||||
| Pass | $ | 170,093 | $ | 173,324 | $ | 153,819 | $ | 177,969 | $ | 181,255 | ||||||||||
| Special mention | 701 | 793 | 733 | 747 | 808 | |||||||||||||||
| Substandard | 235 | 131 | 180 | 116 | 123 | |||||||||||||||
| Total Commercial | $ | 171,029 | $ | 174,248 | $ | 154,732 | $ | 178,832 | $ | 182,186 | ||||||||||
| Consumer | ||||||||||||||||||||
| Pass | $ | 12,162 | $ | 15,317 | $ | 15,974 | $ | 14,594 | $ | 14,866 | ||||||||||
| Special mention | 44 | 21 | 5 | 6 | 7 | |||||||||||||||
| Substandard | 54 | 79 | 30 | 36 | 35 | |||||||||||||||
| Total Consumer | $ | 12,260 | $ | 15,417 | $ | 16,009 | $ | 14,636 | $ | 14,908 | ||||||||||
| Other | ||||||||||||||||||||
| Pass | $ | 7,237 | $ | 7,451 | $ | 7,642 | $ | 7,773 | $ | 7,506 | ||||||||||
| Special mention | - | - | - | - | ||||||||||||||||
| Substandard | - | - | - | - | - | |||||||||||||||
| Total Other | $ | 7,237 | $ | 7,451 | $ | 7,642 | $ | 7,773 | $ | 7,506 | ||||||||||
| Total loans | ||||||||||||||||||||
| Pass | $ | 1,881,694 | $ | 1,863,045 | $ | 1,764,643 | $ | 1,788,318 | $ | 1,791,199 | ||||||||||
| Special mention | 10,358 | 10,539 | 3,352 | 4,117 | 5,851 | |||||||||||||||
| Substandard | 6,036 | 6,427 | 5,579 | 5,954 | 5,804 | |||||||||||||||
| Total Gross loans | $ | 1,898,088 | $ | 1,880,011 | $ | 1,773,574 | $ | 1,798,389 | $ | 1,802,854 | ||||||||||
13
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 diluted earnings per share. We define core diluted earnings per share as core net income divided by diluted weighted average 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). |
| ● | Core efficiency ratio. We define core efficiency ratio as operating revenue (net interest income, plus total noninterest income, divided by noninterest expenses (less non-recurring expenses). 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. |
| ● | Efficiency Ratio. We define efficiency ratio as operating expenses divided by fee income plus tax equivalent net interest income. This metric indicates how effectively the Company manages its expenses relative to its income, providing insights into cost management and profitability. |
| ● | 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. |
| ● | 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. |
14
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) | Table 10 |
| As of and for the Three Months Ended | As of and for the Twelve Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands, except per share data) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2024 | |||||||||||||||||||||
| Pre-Tax Pre-Provision Net | ||||||||||||||||||||||||||||
| Net Income: | ||||||||||||||||||||||||||||
| Pre-tax income | $ | 11,860 | $ | 12,391 | $ | 12,296 | $ | 11,528 | $ | 11,202 | $ | 47,417 | $ | 40,572 | ||||||||||||||
| Add: provision for loan and lease losses | 122 | 463 | - | - | - | 463 | 1,829 | |||||||||||||||||||||
| Pre-tax pre-provision net income | $ | 11,982 | $ | 12,854 | $ | 12,296 | $ | 11,528 | $ | 11,202 | $ | 47,880 | $ | 42,401 | ||||||||||||||
| Tangible Common Equity: | ||||||||||||||||||||||||||||
| Shareholders’ equity | $ | 293,518 | $ | 285,344 | $ | 245,153 | $ | 235,268 | $ | 226,179 | 285,344 | 220,256 | ||||||||||||||||
| Less: non controlling interest | - | - | ||||||||||||||||||||||||||
| Less: goodwill | 8,511 | 8,511 | 8,511 | 8,511 | 8,511 | 8,511 | 8,514 | |||||||||||||||||||||
| Less: core deposit intangible (net of tax benefit) | 2,875 | 3,164 | 3,448 | 3,744 | 4,035 | 3,164 | 4,331 | |||||||||||||||||||||
| Tangible common equity | $ | 282,132 | $ | 273,669 | $ | 233,194 | $ | 223,013 | $ | 213,633 | $ | 273,669 | $ | 207,411 | ||||||||||||||
| Pre-Tax Pre-Provision Return on Average Assets: | ||||||||||||||||||||||||||||
| Total average assets | $ | 2,296,115 | $ | 2,249,282 | $ | 2,170,869 | $ | 2,248,134 | $ | 2,289,582 | $ | 2,239,468 | $ | 2,217,423 | ||||||||||||||
| Pre-tax pre-provision net income | 11,982 | 12,854 | 12,296 | 11,528 | 11,202 | 47,880 | 42,401 | |||||||||||||||||||||
| Pre-tax pre-provision return on average assets | 2.09 | % | 2.29 | % | 2.27 | % | 2.05 | % | 1.96 | % | 2.14 | % | 1.91 | % | ||||||||||||||
| Return on Average Tangible Common Equity: | ||||||||||||||||||||||||||||
| Total average shareholders’ equity | 288,485 | $ | 259,784 | $ | 239,473 | $ | 227,883 | $ | 219,940 | $ | 236,770 | $ | 206,622 | |||||||||||||||
| Less: average intangible assets (net of tax benefit) | 11,386 | 11,767 | 11,980 | 11,997 | 12,310 | $ | 12,014 | 13,497 | ||||||||||||||||||||
| Less: average non controlling interest | - | - | - | - | - | - | 2,701 | |||||||||||||||||||||
| Average tangible equity | 277,099 | 248,017 | 227,493 | 215,886 | 207,630 | 224,757 | 190,424 | |||||||||||||||||||||
| Net income to shareholders | 9,534 | 10,167 | 9,467 | 8,870 | 8,692 | 37,196 | 31,410 | |||||||||||||||||||||
| Return on average tangible equity | 13.76 | % | 16.40 | % | 16.65 | % | 16.43 | % | 16.75 | % | 16.55 | % | 16.49 | % | ||||||||||||||
| Tangible Book Value per Common Share: | ||||||||||||||||||||||||||||
| Tangible common equity | $ | 282,132 | $ | 273,669 | $ | 233,194 | $ | 223,013 | $ | 213,633 | $ | 273,669 | $ | 207,411 | ||||||||||||||
| Shares of common stock | ||||||||||||||||||||||||||||
| outstanding | 13,697,987 | 13,697,987 | 12,239,644 | 12,239,644 | 12,239,644 | 13,697,987 | 12,113,114 | |||||||||||||||||||||
| Tangible book value per share, reported | $ | 20.60 | $ | 19.98 | $ | 19.05 | $ | 18.22 | $ | 17.45 | $ | 19.98 | $ | 17.12 | ||||||||||||||
15
| Non-GAAP Reconciliations (unaudited) | Table 10 |
| As of and for the Three Months Ended | As of and for the Twelve Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands, except per share data) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2024 | |||||||||||||||||||||
| Tangible Common Equity to Tangible Assets: | ||||||||||||||||||||||||||||
| Tangible common equity | $ | 282,132 | $ | 273,669 | $ | 233,194 | $ | 223,013 | $ | 213,633 | $ | 273,669 | $ | 207,411 | ||||||||||||||
| Total assets | 2,328,789 | 2,291,455 | 2,214,408 | 2,262,511 | 2,266,878 | 2,291,455 | 2,301,211 | |||||||||||||||||||||
| Less: intangible assets | 12,392 | 12,767 | 13,149 | 13,546 | 13,938 | 12,767 | 14,339 | |||||||||||||||||||||
| Tangible assets | 2,316,397 | 2,278,688 | 2,201,258 | 2,248,965 | 2,252,940 | 2,278,688 | 2,286,872 | |||||||||||||||||||||
| Tangible common equity to tangible assets | 12.18 | % | 12.01 | % | 10.59 | % | 9.92 | % | 9.48 | % | 12.01 | % | 9.07 | % | ||||||||||||||
| Core Deposits: | ||||||||||||||||||||||||||||
| Total Deposits | $ | 1,892,217 | $ | 1,815,734 | $ | 1,780,634 | $ | 1,851,248 | $ | 1,902,206 | $ | 1,815,734 | 1,938,597 | |||||||||||||||
| Less: Time deposits equal to or greater than $250,000 | 116,966 | 102,294 | 100,743 | 97,209 | 97,537 | 102,294 | 94,567 | |||||||||||||||||||||
| Less: Brokered deposits | 41,533 | 47,970 | 47,970 | 125,223 | 145,375 | 47,970 | 174,918 | |||||||||||||||||||||
| Core deposits | $ | 1,733,718 | $ | 1,665,470 | $ | 1,631,921 | $ | 1,628,816 | $ | 1,659,294 | $ | 1,665,470 | $ | 1,669,112 | ||||||||||||||
| Core Net Income: | ||||||||||||||||||||||||||||
| Net income | $ | 9,534 | $ | 10,167 | $ | 9,467 | $ | 8,870 | $ | 8,692 | $ | 37,196 | 31,410 | |||||||||||||||
| Add: Non-recurring Expense | 603 | - | - | 302 | 7 | 309 | 2,788 | |||||||||||||||||||||
| Less: tax effect | (133 | ) | - | - | (76 | ) | (2 | ) | (78 | ) | (697 | ) | ||||||||||||||||
| Core net income | $ | 10,004 | $ | 10,167 | $ | 9,467 | $ | 9,096 | $ | 8,697 | $ | 37,427 | 33,501 | |||||||||||||||
| Core Earnings per Share: | ||||||||||||||||||||||||||||
| Core net income | $ | 10,004 | $ | 10,167 | $ | 9,467 | $ | 9,096 | $ | 8,697 | $ | 37,427 | $ | 33,501 | ||||||||||||||
| Average shares outstanding | 13,746,198 | 13,704,030 | 12,240,568 | 12,239,644 | 12,137,013 | 12,580,314 | 12,187,788 | |||||||||||||||||||||
| Core earnings per share | $ | 0.73 | $ | 0.74 | $ | 0.77 | $ | 0.74 | $ | 0.72 | $ | 2.98 | $ | 2.75 | ||||||||||||||
| Core Return on Average Assets: | ||||||||||||||||||||||||||||
| Core net income | $ | 10,004 | $ | 10,167 | $ | 9,467 | $ | 9,096 | $ | 8,697 | $ | 37,427 | $ | 33,501 | ||||||||||||||
| Average assets | 2,296,115 | 2,249,282 | 2,170,869 | 2,248,134 | 2,289,582 | 2,239,468 | 2,217,423 | |||||||||||||||||||||
| Core return on average assets | 1.74 | % | 1.81 | % | 1.74 | % | 1.62 | % | 1.52 | % | 1.67 | % | 1.51 | % | ||||||||||||||
| Core Return on Average Tangible Common Equity: | ||||||||||||||||||||||||||||
| Average tangible common equity | $ | 277,099 | $ | 248,017 | $ | 227,493 | $ | 215,886 | $ | 207,630 | $ | 224,757 | $ | 190,424 | ||||||||||||||
| Core net income | 10,004 | 10,167 | 9,467 | 9,096 | 8,697 | 37,427 | 33,501 | |||||||||||||||||||||
| Core return on average tangible common equity | 14.44 | % | 16.40 | % | 16.65 | % | 16.85 | % | 16.75 | % | 16.65 | % | 17.59 | % | ||||||||||||||
| Core Efficiency Ratio: | ||||||||||||||||||||||||||||
| Add: net interest income | $ | 20,478 | $ | 20,810 | $ | 20,222 | $ | 20,059 | $ | 19,340 | $ | 80,431 | $ | 77,584 | ||||||||||||||
| Add: non interest income | 2,591 | 2,667 | 2,626 | 2,194 | 2,443 | 9,930 | 10,878 | |||||||||||||||||||||
| Operating revenue | $ | 23,069 | $ | 23,477 | $ | 22,848 | $ | 22,253 | $ | 21,783 | $ | 90,361 | 88,462 | |||||||||||||||
| Total noninterest expenses | 11,087 | 10,623 | 10,552 | 10,725 | 10,581 | 42,481 | 46,061 | |||||||||||||||||||||
| Less: non-recurring expenses | 603 | - | - | 302 | 7 | 309 | 2,788 | |||||||||||||||||||||
| Core noninterest expenses | 10,484 | 10,623 | 10,552 | 10,423 | 10,574 | 42,172 | 43,273 | |||||||||||||||||||||
| Core efficiency ratio | 45.45 | % | 45.25 | % | 46.18 | % | 46.84 | % | 48.54 | % | 46.67 | % | 48.92 | % | ||||||||||||||
16
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.
Forward-Looking Statements
This press release contains statements that constitute “forward-looking statements” within the meaning of the U.S. federal securities laws. The statements in this press release that are not purely historical facts are forward-looking statements. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other variations or comparable terminology and expressions. You should not place undue reliance on these forward-looking statements as actual future results may differ materially from those expressed or implied by any forward-looking statement. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in any forward-looking statements, including but not limited to: (1) business and economic conditions nationally, regionally and in our target markets, particularly in Kentucky, North Carolina and Tennessee and the particular geographic areas in which we operate; (2) the level of, or changes in the level of, interest rates and inflation, including the effects thereof on our earnings and financial condition and the market value of our investment securities and loan portfolios; (3) the concentration of our loan portfolio in real estate loans and changes in the prices, values and sales volumes of commercial and residential real estate; (4) the concentration of our business within our geographic areas of operation in Kentucky, North Carolina and Tennessee and neighboring markets; (5) credit and lending risks associated with our commercial real estate, commercial, and construction and land development loan portfolios; (6) risks associated with our focus on lending to small and medium-sized businesses; (7) our ability to maintain important deposit customer relationships, maintain our reputation or otherwise avoid liquidity risks; (8) changes in demand for our products and services; (9) the failure of assumptions and estimates underlying the establishment of allowances for possible credit losses and other asset impairments, losses, valuations of assets and liabilities and other estimates; (10) the sufficiency of our capital, including sources of such capital and the extent to which capital may be used or required; (11) our inability to maintain a “satisfactory” rating under the Community Reinvestment Act; (12) the risk that our cost of funding could increase in the event we are unable to continue to attract stable, low-cost deposits and reduce our cost of deposits; (13) our inability to raise necessary capital to fund our growth strategy and operations or to meet increased required minimum regulatory capital levels; (14) our ability to execute and prudently manage our growth and execute our business strategy, including expansionary activities; (15) the composition of and changes in our management team and our ability to attract, incentivize and retain key personnel; (16) the effects of competition from a wide variety of local, regional, national and other providers of financial, investment, trust and other wealth management services and insurance services, including the disruptive effects of financial technology and other competitors who are not subject to the same regulations as the Company and the Bank; (17) the deterioration of our asset quality or the value of collateral securing loans; (18) changes in accounting standards; (19) the effectiveness of our risk management framework, including internal controls; (20) severe weather, natural disasters, pandemics, epidemics, acts of war, terrorism, or other external events, such as the transition risk associated with climate change, and other matters beyond our control; (21) changes in technology or products that may be more difficult, more costly, or less effective than anticipated; (22) the risks of acquisitions and other expansionary activities, including without limitation our ability to identify and consummate transactions with potential future acquisition candidates, the time and costs associated with pursuing such transactions, our ability to successfully integrate operations as part of such transactions and our ability, and possible failures, to achieve expected gains, revenue growth, expense savings and/or other synergies from such transactions; (23) our ability to maintain our historical rate of growth; (24) failure to keep pace with technological change or difficulties when implementing new technologies; (25) systems failures or interruptions involving our risk management framework, our information technology and telecommunications systems or third-party service providers; (26) our ability to identify and address unauthorized data access, cyber-crime and other threats to data security and customer privacy; (27) our compliance with governmental and regulatory requirements, including the Bank Holding Company Act of 1956, as amended, and other laws relating to banking, consumer protection, securities and tax matters, and our ability to maintain licenses required in connection with mortgage origination, sale and servicing operations; (28) compliance with the Bank Secrecy Act of 1970, Office of Foreign Assets Control rules and anti-money laundering laws and regulations; (29) governmental monetary and fiscal policies; (30) changes in laws, rules, or regulations, or interpretations thereof, or policies relating to financial institutions or accounting, tax, trade, monetary or fiscal matters; (31) our ability to receive dividends from the Bank and satisfy our obligations as they become due; (32) the institution and outcome of litigation and other legal proceedings against us or to which we become subject; (33) the limited experience of our management team in managing and operating a public company; (34) the incremental costs of operating as a public company; (35) our ability to meet our obligations as a public company, including our obligations under Section 404 of the Sarbanes-Oxley Act of 2002; and (36) other risks and factors described under the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual report on Form 10-K for the fiscal year ended December 31, 2025, or in any of the Company’s subsequent filings with the U.S. Securities and Exchange Commission. Commercial undertakes no obligation to update these forward-looking statements, as a result of changes in assumptions, new information, or otherwise, after the date of this press release, except as required by law.
17
Exhibit 99.2
1Q26 Earnings Presentation April 27 , 2026 COMMERCIAL BANCGROUP, INC.
2 Important Notices and Disclaimers Use of Defined Terms As used in this presentation, the terms “Company,” “Commercial,” “we,” “our,” and “us” refer to Commercial Bancgroup, Inc., a Te nnessee corporation. The term “Bank” refers to Commercial Bank, the Company’s wholly owned bank subsidiary. Forward - Looking Statements This presentation contains statements that constitute “forward - looking statements” within the meaning of the U.S. federal securi ties laws. The statements in this presentation that are not purely historical facts, including statements regarding our growth strategy, our strategic focus an d v ision, and the scalability of our business model, are forward - looking statements. These forward - looking statements are generally identified by the use of forward - looking t erminology, including the terms “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “t arget,” “will,” “would” and, in each case, their negative or other variations or comparable terminology and expressions. You should not place undue reliance on these forward - loo king statements as actual future results may differ materially from those expressed or implied by any forward - looking statement. These forward - looking statements are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed in or implied by any forward - looking statements, including but not limited to: (1) business and economic conditions nationally, regionally, and in our target markets , particularly in Kentucky, North Carolina, and Tennessee and the particular geographic areas in which we operate; (2) the level of, or changes in the level of , i nterest rates and inflation, including the effects thereof on our earnings and financial condition and the market value of our investment securities and loan portfo lio s; (3) the concentration of our loan portfolio in real estate loans and changes in the prices, values, and sales volumes of commercial and residential real estate ; ( 4) the concentration of our business within our geographic areas of operation in Kentucky, North Carolina, and Tennessee and neighboring markets; (5) credit and l end ing risks associated with our commercial real estate, commercial, and construction and land development loan portfolios; (6) risks associated with our focu s o n lending to small and medium - sized businesses; (7) our ability to maintain important deposit customer relationships, maintain our reputation, or otherwise av oid liquidity risks; (8) changes in demand for our products and services; (9) the failure of assumptions and estimates underlying the establishment of allowances fo r possible credit losses and other asset impairments, valuations of assets and liabilities, and other estimates; (10) the sufficiency of our capital, including sou rces of such capital and the extent to which capital may be used or required; (11) our inability to maintain a “satisfactory” rating under the Community Reinvestmen t A ct; (12) the risk that our cost of funding could increase in the event we are unable to continue to attract stable, low - cost deposits and reduce our cost of deposi ts; (13) our inability to raise necessary capital to fund our growth strategy and operations or to meet increased required minimum regulatory capital levels; (1 4) our ability to execute and prudently manage our growth and execute our business strategy, including expansionary activities; (15) the composition of and ch anges in our management team and our ability to attract, incentivize, and retain key personnel; (16) the effects of competition from a wide variety of loc al, regional, national, and other providers of financial, investment, trust, and other wealth management services and insurance services, including the disruptive effects o f f inancial technology and other competitors who are not subject to the same level of supervision and regulation as the Company and the Bank; (17) the deterio rat ion of our asset quality or the value of collateral securing loans; (18) changes in accounting standards; (19) the effectiveness of our risk management framework, inc luding internal controls; (20) severe weather, natural disasters, pandemics, epidemics, acts of war, terrorism, or other external events, such as the transition ri sk associated with climate change, and other matters beyond our control; BS0
3 Important Notices and Disclaimers (21) changes in technology or products that may be more difficult or costly or less effective than anticipated; (22) the risk s o f acquisitions and other expansionary activities, including without limitation our ability to identify and consummate transactions with potential future acquisitio n c andidates, the time and costs associated with pursuing such transactions, our ability to successfully integrate operations as part of such transactions, and our abili ty, and possible failures, to achieve expected gains, revenue growth, expense savings, and/or other synergies from such transactions; (23) our ability to maintain our historical rate of growth; (24) failure to keep pace with technological change or difficulties when implementing new technologies; (25) systems failures or interrupt ion s involving our risk management framework, our information technology and telecommunications systems, or third - party service providers; (26) our ability to iden tify and address unauthorized data access, cyber - crime, and other threats to data security and customer privacy; (27) our compliance with governmental and regulato ry requirements, including the Bank Holding Company Act of 1956, as amended, and other laws relating to banking, consumer protection, securities, and tax matte rs, and our ability to maintain licenses required in connection with mortgage origination, sale, and servicing operations; (28) compliance with the Bank Secr ecy Act of 1970, Office of Foreign Assets Control rules, and anti - money laundering laws and regulations; (29) governmental monetary and fiscal policies; (30) chang es in laws, rules, or regulations, or interpretations thereof, or policies relating to financial institutions or accounting, tax, trade, monetary, or fiscal matter s; (31) our ability to receive dividends from the Bank and satisfy our obligations as they become due; (32) the institution and outcome of litigation and other legal proceedin gs against us or to which we become subject; (33) the limited experience of our management team in managing and operating a public company; (34) the incremental cos ts of operating as a public company; and (35) our ability to meet our obligations as a public company, including our obligations under Section 404 of the Sa rbanes - Oxley Act of 2002. Additional factors that could affect forward - looking statements in this presentation can be found in the sections titled “Risk F actors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10 - K for the fiscal year ended Decem ber 31, 2025, with the U.S. Securities and Exchange Commission (the “SEC”) and in other documents that we file with the SEC from time to time, which are ava ilable on the SEC’s website, www.sec.gov. The Company can provide no assurance that the results contemplated, expressed, or implied by any forward - looking statement will be realized. Our actual future financial results or performance may differ from that currently expected due to additional risks and uncertainties of which w e a re currently not aware or which we currently do not consider, but in the future may become, material to our business or operating results. Readers are cautioned to not place undue reliance on any of the forward - looking statements contained in this presentation. The f orward - looking statements contained in this presentation speak only as of the date they are made, and the Company undertakes no obligation to review or up date any forward - looking statements, whether as a result of new information, changes in assumptions, or otherwise, except as required by law. Non - GAAP Financial Measures This presentation contains certain financial measures that are not measures recognized under generally accepted accounting pr inc iples in the U.S. (“GAAP”) and, therefore, are considered non - GAAP financial measures. The Appendix to this presentation includes reconciliations of these non - G AAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP. We use non - GAAP financial measures, certain of w hich are included in this presentation, both to explain our operating results to shareholders and the investment community and to evaluate, analyze, an d m anage our business. We believe that these non - GAAP financial measures provide a better understanding of ongoing operations, enhance the comparability of result s across periods, and enable investors to better understand our performance. However, non - GAAP financial measures should not be considered in isolation and s hould be considered supplemental in nature and not as a substitute for or superior to the most directly comparable or other financial measures ca lcu lated in accordance with GAAP. Additionally, the manner in which the non - GAAP financial measures contained in this presentation 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 si milar to, or with names similar to, the non - GAAP financial measures contained in this presentation when comparing such non - GAAP financial measures.
4 Important Notices and Disclaimers Industry Information Certain industry and market data and forecasts, and other information, contained in this presentation has been prepared based , i n part, upon data, forecasts, and other information that we obtained from regulatory sources, periodic industry publications, third - party studies and surveys, fil ings of public companies in our industry, internal company surveys, or other independent information publicly available to us. Although we believe such information is rel iable and are not aware of any inaccuracies therein as of the date of this presentation, we have not independently verified this information, and this infor mat ion could prove to be inaccurate or incomplete. Readers are solely responsible for their own assessment of all such information. The delivery of this presentation will not, under any circumstances, create an implication that there has been no change in t he affairs of the Company since the date of this presentation. The Company is not making any representation or warranty, express or implied, as to the accuracy or com ple teness of the information summarized herein or made available in connection with any further investigation of the Company. The Company disclaims any an d a ll liability based on such information or errors therein or omissions therefrom.
5 Company Overview Headquarters: Harrogate, TN Branches 2 : 34 Total Assets: $2.3 Billion Total Loans: $1.9 Billion Total Deposits: $1.9 Billion 1 Non - GAAP financial measure. See Appendix for a reconciliation of non - GAAP financial measures. 2 Includes the banking facility located in our principal executive office. Note: Q126 percentages are annualized. Source: Company documents and S&P Capital IQ Pro Franchise Map Financial Highlights Louisville Lexington Nashville Chattanooga Knoxville Harrogate Kingsport Johnson City Bristol Charlotte Winston - Salem Kentucky Tennessee North Carolina Headquarters Current Branch Location Planned De Novo Branch Location BS0 BS1
6 Investment Merits Competitive Strengths Experienced and invested leadership team with meaningful ownership Successfully completed five whole - bank acquisitions since 2008 with a focus on balance sheet and customer retention Diversified, commercially focused loan portfolio well - positioned in attractive growth markets Strong core deposit base comprised of 46% demand deposits (as of March 31, 2026) with excellent market share throughout nine community markets Top tier financial performer, consistently ranking in the top & upper quartiles compared with peers Proven ability to recruit and retain talented bankers and staff across our markets Scalable, decentralized operating model with local leadership and decision - making authority coupled with strong, centralized risk and credit support Strategic Focus Growth and expansion strategy with a keen focus on strengthening our presence in higher growth markets in Tennessee and North Carolina Emphasize commercial banking with a focus on small & medium - sized businesses and consumers Deliver best - in - class, top tier shareholder returns with a focus on EPS and TBVPS growth consistent with historical performance Execute a capital deployment strategy focused on organic growth, disciplined M&A and de novo expansion Fund asset growth through core deposit generation and strong relationship banking Leverage technology to enhance the customer experience and improve productivity
<7' <7' 7 Driving Shareholder Value is Our Top Priority Tangible Book Value Per Share 1 Core Earnings Per Share 1 Core Efficiency Ratio 1 Core ROATCE 1 Core ROAA 1 Reported PPNI ($M) 1 <7' <7' <7' <7' 2 Combined Annual Growth Rate (CAGR) is from December 31, 2020 to December 31, 2025 for all graphs. (1) Considered non - GAAP financial measure - See "Non - GAAP Financial Measures" and reconciliation of non - GAAP financial measures in Appendix BS0 BS1 BS2 BS3
<7' <7' <7' <7' 8 Consistent Balance Sheet Growth Total Net Loans ($M) Total Assets ($M) Total Equity ($M) Total Deposits ($M) Source: Company documents
9 Key Markets Overview/Dynamics ■ A premier financial and economic hub within the Southeastern U.S. with an estimated population of ~2.9 million ■ Home to several major financial institutions and serves as a critical nexus for the energy, healthcare, and logistics sectors ■ Dominance in the financial industry and innovation ecosystem create an unparalleled opportunity for long - term growth Charlotte, NC ■ One of the most rapidly expanding metropolitan regions within the U.S. with an estimated population of ~2.2 million ■ Widely acclaimed for its vibrant cultural scene, dynamic labor market, and relative affordability ■ Nashville serves as home to several Fortune 500 and industry - leading corporations led by the healthcare industry Nashville, TN ■ Dynamic and expanding economic center in East Tennessee with an estimated population of ~1 million ■ The Knoxville MSA hosts key industries, including advanced manufacturing, energy production, and logistics ■ Home to the University of Tennessee and Oak Ridge National Laboratory Knoxville, TN ■ A dynamic and expanding economic hub in Northeast Tennessee and Southwest Virginia with an estimated population of ~0.5 million ■ Diversified economic base, anchored by critical sectors such as healthcare, manufacturing, logistics, and tourism ■ Location at the intersection of major interstate highways enhances its appeal as a logistics and distribution center Tri - Cities, TN 1 ■ Our community markets tend to offer primarily retail and small business customer opportunities and more limited competition ■ This leads to an attractive profitability profile and smaller ticket, more granular loan and deposit portfolios ■ These markets have been deemphasized by national and regional banks which allows for continued growth Community Markets 1 Source: Demographic data provided by S&P Capital IQ Pro and sourced from Claritas based on U.S. Census data Tri - Cities, TN includes Kingsport, Bristol, and Johnson City, TN
<7' 7&(5DWLR &(7 5DWLR 7RWDO5LVN EDVHG&DSLWDO 10 Consolidated Capital Ratios Capital Ratios (%) Capital Position Simple Capital Structure <7' &RPPRQ(TXLW\7LHU 7UXVW3UHIHUUHG 7LHU $&/ 1 Non - GAAP financial measure. See Appendix for a reconciliation of Non - GAAP financial measures. Source: Company documents ■ The Company repaid its $20.3M note payable to Community Trust Bank, Inc. on October 7, 2025. Interest payments were based on a variable rate per annum equal to the prime rate as reported in The Wall Street Journal, adjusted daily. The loan was utilized to finance merger transactions and support Bank level capital ■ The Company redeemed $6.2M of Trust Preferred Securities on January 7, 2026 that paid interest and dividends quarterly at a rate of Secured Overnight Financing Rate (“SOFR”) plus 2.4% 1 CRE and Construction Concentrations (Bank Level)
11 24% 25% 22% 20% 24% 23% 23% 25% 25% 19% 14% 14% 5% 5% 4% 9% 10% 9% 16% 16% 12% 10% 11% 11% 21% 19% 18% 20% 22% 21% 12% 10% 18% 22% 20% 23% 1,449 1,421 1,820 1,939 1,816 1,892 $0 $500 $1,000 $1,500 $2,000 $2,500 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2021 2022 2023 2024 2025 YTD Deposits Demand deposits Interest-bearing Demand Money Market Savings Time Deposits Brokered Total Valuable Deposit Franchise 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 2Q 2025 3Q 2025 4Q 2025 1Q 2026 Cost of Deposits Interest-bearing DDAs Savings & MMDA Certificates of deposit Total deposits
'XHLQ2QH <HDURU/HVV 'XHDIWHU2QH <HDU7KURXJK)LYH <HDUV 'XHDIWHU)LYH <HDUV <7' & , 2ZQHU2FFXSLHG&5( 1RQ RZQHU2FFXSLHG&5( )L[HG5DWH $GMXVWDEOH 5DWH 12 Loan Portfolio Detail Loan Maturity Schedule as of March 31, 2026 Commercial Loan Growth ($M) Fixed vs. Adjustable - Rate Loans As of March 31, 2026 Loan Portfolio Highlights ■ Diversified portfolio with an emphasis on commercial and business clients with sufficient debt service ratios, guarantor liquidity, and multiple forms of collateral ■ Substantial repeat business with very little turnover ■ All lending relationships over $2.5M in exposure get an expansive annual credit review ■ Every commercial loan has a 10% deposit requirement, typically the primary operating account ■ C&D portfolio largely domiciled in major metro markets. All transactions greater than $2.5M require multiple site visits. ■ Single family mortgage loans are retained on the balance sheet Source: Company documents BS0 BS1
13 Loan Portfolio Detail (cont’d) C&I and Owner - occupied CRE by Industry ($M) As of March 31, 2026BS0BS1BS2BS3 BS4
4 <7' 14 Asset Quality Loan Loss Reserve / NPAs (%) Criticized and Classified Loans / Loans (%) Net Charge - offs (Recoveries) / Average Loans (%) NPAs and 90 Days Past Due / Assets (%) <7' <7' Dollar figures are in thousands ($000) Source: Company documents
15 Investment Highlights 1 Investment Highlights History of robust organic growth and proven top tier financial performance Experienced management team with vested ownership Best - in - class shareholder returns with a focus on EPS and TBVPS growth Balanced franchise with a combination of high growth Southeastern metro markets and stable, deposit rich community markets Diversified, commercially focused loan portfolio with conservative credit culture and an emphasis on true relationship banking Scalable, decentralized business model supported by centralized underwriting, credit administration and technology
Appendix
17 (dollars in thousands, except per share data) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2025 December 31, 2024 Pre-Tax Pre-Provision Net Net Income: Pre-tax income 11,860$ 12,391$ 12,296$ 11,528$ 11,202$ 47,417$ 40,572$ Add: provision for loan and lease losses 122 463 - - - 463 1,829 Pre-tax pre-provision net income 11,982$ 12,854$ 12,296$ 11,528$ 11,202$ 47,880$ 42,401$ Tangible Common Equity: Shareholders' equity 293,518$ 285,344$ 245,153$ 235,268$ 226,179$ 285,344 220,256 Less: non controlling interest - - Less: goodwill 8,511 8,511 8,511 8,511 8,511 8,511 8,514 Less: core deposit intangible (net of tax benefit) 2,875 3,164 3,448 3,744 4,035 3,164 4,331 Tangible common equity 282,132$ 273,669$ 233,194$ 223,013$ 213,633$ 273,669$ 207,411$ Pre-Tax Pre-Provision Return on Average Assets: Total average assets 2,296,115$ 2,249,282$ 2,170,869$ 2,248,134$ 2,289,582$ 2,239,468$ 2,217,423$ Pre-tax pre-provision net income 11,982 12,854 12,296 11,528 11,202 47,880 42,401 Pre-tax pre-provision return on average assets 2.09% 2.29% 2.27% 2.05% 1.96% 2.14% 1.91% Return on Average Tangible Common Equity: Total average shareholders' equity 288,485 259,784$ 239,473$ 227,883$ 219,940$ 236,770$ 206,622$ Less: average intangible assets (net of tax benefit) 11,386 11,767 11,980 11,997 12,310 12,014$ 13,497 Less: average non controlling interest - - - - - - 2,701 Average tangible equity 277,099 248,017 227,493 215,886 207,630 224,757 190,424 Net income to shareholders 9,534 10,167 9,467 8,870 8,692 37,196 31,410 Return on average tangible equity 13.76% 16.40% 16.65% 16.43% 16.75% 16.55% 16.49% Tangible Book Value per Common Share: Tangible common equity 282,132$ 273,669$ 233,194$ 223,013$ 213,633$ 273,669$ 207,411$ Shares of common stock outstanding 13,697,987 13,697,987 12,239,644 12,239,644 12,239,644 13,697,987 12,113,114 Tangible book value per share, reported 20.60$ 19.98$ 19.05$ 18.22$ 17.45$ 19.98$ 17.12$ As of and for the Twelve Months Ended Non-GAAP Reconciliations (unaudited) As of and for the Three Months Ended
18 (dollars in thousands, except per share data) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2025 December 31, 2024 Tangible Common Equity to Tangible Assets: Tangible common equity 282,132$ 273,669$ 233,194$ 223,013$ 213,633$ 273,669$ 207,411$ Total assets 2,328,789 2,291,455 2,214,408 2,262,511 2,266,878 2,291,455 2,301,211 Less: intangible assets 12,392 12,767 13,149 13,546 13,938 12,767 14,339 Tangible assets 2,316,397 2,278,688 2,201,258 2,248,965 2,252,940 2,278,688 2,286,872 Tangible common equity to tangible assets 12.18% 12.01% 10.59% 9.92% 9.48% 12.01% 9.07% Core Deposits: Total Deposits 1,892,217$ 1,815,734$ 1,780,634$ 1,851,248$ 1,902,206$ 1,815,734$ 1,938,597 Less: Time deposits equal to or greater than $250,000 116,966 102,294 100,743 97,209 97,537 102,294 94,567 Less: Brokered deposits 41,533 47,970 47,970 125,223 145,375 47,970 174,918 Core deposits 1,733,718$ 1,665,470$ 1,631,921$ 1,628,816$ 1,659,294$ 1,665,470$ 1,669,112$ Core Net Income: Net income 9,534$ 10,167$ 9,467$ 8,870$ 8,692$ 37,196$ 31,410 Add: Non-recurring Expense 603 - - 302 7 309 2,788 Less: tax effect (133) - - (76) (2) (78) (697) Core net income 10,004$ 10,167$ 9,467$ 9,096$ 8,697$ 37,427$ 33,501 Core Earnings per Share: Core net income 10,004$ 10,167$ 9,467$ 9,096$ 8,697$ 37,427$ 33,501$ Average shares outstanding 13,746,198 13,704,030 12,240,568 12,239,644 12,137,013 12,580,314 12,187,788 Core earnings per share 0.73$ 0.74$ 0.77$ 0.74$ 0.72$ 2.98$ 2.75$ Core Return on Average Assets: Core net income 10,004$ 10,167$ 9,467$ 9,096$ 8,697$ 37,427$ 33,501$ Average assets 2,296,115 2,249,282 2,170,869 2,248,134 2,289,582 2,239,468 2,217,423 Core return on average assets 1.74% 1.81% 1.74% 1.62% 1.52% 1.67% 1.51% Core Return on Average Tangible Common Equity: Average tangible common equity 277,099$ 248,017$ 227,493$ 215,886$ 207,630$ 224,757$ 190,424$ Core net income 10,004 10,167 9,467 9,096 8,697 37,427 33,501 Core return on average tangible common equity 14.44% 16.40% 16.65% 16.85% 16.75% 16.65% 17.59% Core Efficiency Ratio: Add: net interest income 20,478$ 20,810$ 20,222$ 20,059$ 19,340$ 80,431$ 77,584$ Add: non interest income 2,591 2,667 2,626 2,194 2,443 9,930 10,878 Operating revenue 23,069$ 23,477$ 22,848$ 22,253$ 21,783$ 90,361$ 88,462 Total noninterest expenses 11,087 10,623 10,552 10,725 10,581 42,481 46,061 Less: non-recurring expenses 603 - - 302 7 309 2,788 Core noninterest expenses 10,484 10,623 10,552 10,423 10,574 42,172 43,273 Core efficiency ratio 45.45% 45.25% 46.18% 46.84% 48.54% 46.67% 48.92% As of and for the Twelve Months Ended As of and for the Three Months Ended
Exhibit 99.3
COMMERCIAL BANCGROUP, INC. ANNOUNCES QUARTERLY CASH DIVIDEND AND
SHARE REPURCHASE PROGRAM
HARROGATE, TN (April 27, 2026) – Commercial Bancgroup, Inc. (“Commercial”) (NASDAQ:CBK), the parent company for Commercial Bank, announced today that on April 27, 2026, the board of directors of Commercial (the “Board”) declared a quarterly cash dividend of $0.10 per share of Commercial common stock payable on June 30, 2026, to shareholders of record as of the close of business on June 15, 2026.
Commercial also announced that the Board authorized a stock repurchase plan (the “2026 Repurchase Program”) pursuant to which Commercial may repurchase, from time to time, up to an aggregate of $10 million of its outstanding common stock. The 2026 Repurchase Program will expire on April 30, 2027, unless extended by the Board.
“This stock repurchase authorization highlights our confidence in Commercial’s business and our outlook for continued growth,” stated Terry L. Lee, Commercial’s President and CEO. “We believe the stock repurchase plan is a solid investment for our shareholders and provides us with the opportunity to leverage our strong financial position to improve our earnings per share.”
Repurchases under the 2026 Repurchase Program may be effected from time to time in the open market, in privately negotiated transactions, or otherwise in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), in each case subject to applicable regulatory requirements and other factors that may be considered by Commercial in its sole discretion. Repurchases may also be made pursuant to a trading plan under Rule 10b5-1 of the Exchange Act, which would permit shares to be repurchased when Commercial might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions.
Commercial intends to fund the 2026 Repurchase Program with a combination of cash on hand and cash generated from ongoing operations, and repurchased shares will be become authorized but unissued shares. The 2026 Repurchase Program does not obligate Commercial to repurchase any particular amount of common stock and may be extended, modified, amended, suspended, or discontinued by the Board at any time. There can be no guarantee as to the exact number or value of shares that will be repurchased by Commercial. The timing and amount of share repurchases under the 2026 Repurchase Program will depend on a number of factors, including Commercial’s stock price performance, ongoing capital planning considerations, general market conditions, and applicable legal requirements.
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 Bancgroup, Inc. can be found on its website at ir.cbtn.com.
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.
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Forward-Looking Statements
This press release contains statements that constitute “forward-looking statements” within the meaning of the U.S. federal securities laws. The statements in this press release that are not purely historical facts, including statements relating to Commercial’s continued growth, the benefits of and opportunities afforded by the 2026 Repurchase Program, the terms, timing, logistics, conditions, and utilization of the 2026 Repurchase Program, and the manner in which Commercial intends to fund stock repurchases under the 2026 Repurchase Program, are forward-looking statements. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other variations or comparable terminology and expressions. You should not place undue reliance on these forward-looking statements as actual future results may differ materially from those expressed or implied by any forward-looking statement. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in any forward-looking statements, including but not limited to: (1) business and economic conditions nationally, regionally and in our target markets, particularly in Kentucky, North Carolina and Tennessee and the particular geographic areas in which we operate; (2) the level of, or changes in the level of, interest rates and inflation, including the effects thereof on our earnings and financial condition and the market value of our investment securities and loan portfolios; (3) the concentration of our loan portfolio in real estate loans and changes in the prices, values and sales volumes of commercial and residential real estate; (4) the concentration of our business within our geographic areas of operation in Kentucky, North Carolina and Tennessee and neighboring markets; (5) credit and lending risks associated with our commercial real estate, commercial, and construction and land development loan portfolios; (6) risks associated with our focus on lending to small and medium-sized businesses; (7) our ability to maintain important deposit customer relationships, maintain our reputation or otherwise avoid liquidity risks; (8) changes in demand for our products and services; (9) the failure of assumptions and estimates underlying the establishment of allowances for possible credit losses and other asset impairments, losses, valuations of assets and liabilities and other estimates; (10) the sufficiency of our capital, including sources of such capital and the extent to which capital may be used or required; (11) our inability to maintain a “satisfactory” rating under the Community Reinvestment Act; (12) the risk that our cost of funding could increase in the event we are unable to continue to attract stable, low-cost deposits and reduce our cost of deposits; (13) our inability to raise necessary capital to fund our growth strategy and operations or to meet increased required minimum regulatory capital levels; (14) our ability to execute and prudently manage our growth and execute our business strategy, including expansionary activities; (15) the composition of and changes in our management team and our ability to attract, incentivize and retain key personnel; (16) the effects of competition from a wide variety of local, regional, national and other providers of financial, investment, trust and other wealth management services and insurance services, including the disruptive effects of financial technology and other competitors who are not subject to the same regulations as Commercial and Commercial Bank; (17) the deterioration of our asset quality or the value of collateral securing loans; (18) changes in accounting standards; (19) the effectiveness of our risk management framework, including internal controls; (20) severe weather, natural disasters, pandemics, epidemics, acts of war, terrorism, or other external events, such as the transition risk associated with climate change, and other matters beyond our control; (21) changes in technology or products that may be more difficult, more costly, or less effective than anticipated; (22) the risks of acquisitions and other expansionary activities, including without limitation our ability to identify and consummate transactions with potential future acquisition candidates, the time and costs associated with pursuing such transactions, our ability to successfully integrate operations as part of such transactions and our ability, and possible failures, to achieve expected gains, revenue growth, expense savings and/or other synergies from such transactions; (23) our ability to maintain our historical rate of growth; (24) failure to keep pace with technological change or difficulties when implementing new technologies; (25) systems failures or interruptions involving our risk management framework, our information technology and telecommunications systems or third-party service providers; (26) our ability to identify and address unauthorized data access, cyber-crime and other threats to data security and customer privacy; (27) our compliance with governmental and regulatory requirements, including the Bank Holding Company Act of 1956, as amended, and other laws relating to banking, consumer protection, securities and tax matters, and our ability to maintain licenses required in connection with mortgage origination, sale and servicing operations; (28) compliance with the Bank Secrecy Act of 1970, Office of Foreign Assets Control rules and anti-money laundering laws and regulations; (29) governmental monetary and fiscal policies; (30) changes in laws, rules, or regulations, or interpretations thereof, or policies relating to financial institutions or accounting, tax, trade, monetary or fiscal matters; (31) our ability to receive dividends from Commercial Bank and satisfy our obligations as they become due; (32) the institution and outcome of litigation and other legal proceedings against us or to which we become subject; (33) the limited experience of our management team in managing and operating a public company; (34) the incremental costs of operating as a public company; (35) our ability to meet our obligations as a public company, including our obligations under Section 404 of the Sarbanes-Oxley Act of 2002; and (36) other risks and factors described under the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, or in any of Commercial’s subsequent filings with the U.S. Securities and Exchange Commission. Commercial undertakes no obligation to update these forward-looking statements, as a result of changes in assumptions, new information, or otherwise, after the date of this press release, except as required by law.
[END]
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