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Commercial Bancgroup, Inc. Announces Quarterly Cash Dividend and Share Repurchase Program

(Neutral)
(Neutral)
Tags
buybacks dividends

Commercial Bancgroup (NASDAQ:CBK) announced a $0.10 per share quarterly cash dividend payable June 30, 2026 to holders of record on June 15, 2026. The board also authorized a $10 million share repurchase program effective through April 30, 2027, funded with cash on hand and operations.

Repurchases may occur in the open market, via negotiated transactions, or under Rule 10b5-1 plans and do not obligate the company to buy any specific amount.

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Positive

  • Quarterly dividend of $0.10 per share payable June 30, 2026
  • $10 million authorized share repurchase program through April 30, 2027
  • Repurchases may be funded with cash on hand and operating cash flow

Negative

  • The repurchase program does not obligate Commercial to repurchase any shares
  • No guaranteed timing or amount of buybacks; dependent on market and capital plans

News Market Reaction – CBK

+0.24%
+0.24% Session close to close

In the Apr 28 session, CBK gained 0.24%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement combines a recurring quarterly dividend of $0.10 per share with a new authorizatio...
Analysis

This announcement combines a recurring quarterly dividend of $0.10 per share with a new authorization to repurchase up to $10 million of common stock through April 30, 2027. It extends Commercial Bancgroup’s recent emphasis on capital returns following record 2025 results and its IPO. Investors may watch how actively the board uses the repurchase program, the sustainability of earnings supporting the dividend, and any subsequent updates to capital priorities.

Key Figures

Quarterly dividend: $0.10 per share Dividend payment date: June 30, 2026 Dividend record date: June 15, 2026 +5 more
8 metrics
Quarterly dividend $0.10 per share Declared April 27, 2026; common stock
Dividend payment date June 30, 2026 Payable date for declared quarterly dividend
Dividend record date June 15, 2026 Shareholders of record eligible for dividend
Repurchase authorization $10 million Maximum aggregate common stock under 2026 Repurchase Program
Repurchase program expiry April 30, 2027 End date for 2026 Repurchase Program unless extended
Pre-news price $29.10 Current price before dividend/buyback announcement
Price vs 52-week high -2.64% Distance from 52-week high of $29.89 pre-announcement
Market cap $395,049,945 Equity value before the dividend and repurchase news

Historical Context

5 past events · Latest: Apr 01 (Neutral)
Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Apr 01 Earnings date notice Neutral -0.3% Company set the release date for Q1 2026 financial results.
Mar 31 IPO, anniversary milestone Positive +3.1% Celebrated Nasdaq trading milestone and 50th anniversary, highlighting IPO scale.
Jan 27 First cash dividend Positive +0.3% Board approved the company’s first regular quarterly cash dividend.
Jan 26 Q4 2025 earnings Positive -0.2% Reported strong Q4 and full‑year 2025 profits with solid returns and growth.
Jan 06 Executive promotion Positive -1.0% Promoted a new CIO to advance AI adoption and digital banking strategy.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent news skewed positive (earnings strength, dividends, governance/tech hires), with mixed short-term price reactions and several small divergences on fundamentally positive updates.

Recent Company History

This announcement continues Commercial Bancgroup’s shift toward shareholder returns. In January 2026, the company approved its first quarterly cash dividend of $0.10 per share, following record 2025 earnings with Q4 net income of $9.9M and full‑year net income of $36.9M. Since its October 2025 IPO at $24.00, CBK has highlighted growth, solid asset quality, and leadership investments, while modest price reactions to prior positive news show a measured trading response.

Key Terms

stock repurchase plan, Rule 10b-18, Rule 10b5-1, trading blackout periods
4 terms
stock repurchase plan financial
"the Board authorized a stock repurchase plan (the "2026 Repurchase Program") pursuant"
A stock repurchase plan is a company’s program to buy back its own shares from the market, reducing the number of shares available to investors. Like a store buying back its own gift cards to raise the value of remaining cards, buybacks can increase each remaining share’s claim on profits and often signal management believes the stock is undervalued or is an efficient way to return cash, which can affect share price and investor returns.
Rule 10b-18 regulatory
"otherwise in compliance with Rule 10b-18 under the Securities Exchange Act of 1934"
Rule 10b-18 is a regulation that sets strict rules for how a company's executives and employees can buy back their own company's stock from the market. It helps ensure that these buybacks happen in a fair and transparent way, reducing the chance of market manipulation. This is important for investors because it offers protection against unfair practices and promotes confidence in the integrity of the stock market.
Rule 10b5-1 regulatory
"Repurchases may also be made pursuant to a trading plan under Rule 10b5-1 of the Exchange Act"
Rule 10b5-1 is a regulation that allows company insiders to buy or sell their shares at predetermined times, even if they have access to non-public information. It acts like setting a schedule in advance for transactions, helping prevent accusations of unfair trading. This rule provides a way for insiders to plan trades transparently, giving investors confidence that these transactions are not based on hidden information.
trading blackout periods technical
"when Commercial might otherwise be precluded from doing so because of self-imposed trading blackout periods"
Times when company insiders and certain employees are legally or policy-bound to stop buying or selling the company’s stock, usually around sensitive windows such as before earnings, major announcements, or audits. These pauses act like a temporary “hands-off” rule to prevent trades based on information not yet available to the public, reducing the risk of unfair advantage and regulatory violations; investors watch them because they can limit share liquidity and signal forthcoming news.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HARROGATE, TN / ACCESS Newswire / 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 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 our website at ir.cbtn.com.

Contacts

Philip J. Metheny
Sr. Executive Vice President, Chief Financial Officer
Commercial Bancgroup, Inc.
ir@cbtn.com
423-869-5151

Roger Mobley
Executive Vice President, Chief Financial Officer
Commercial Bank
ir@cbtn.com
704-648-0185

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.

SOURCE: Commercial Bancgroup, Inc.



View the original press release on ACCESS Newswire

FAQ

What dividend did Commercial Bancgroup (CBK) declare on April 27, 2026?

Commercial declared a $0.10 per share quarterly cash dividend payable June 30, 2026. According to the company, shareholders of record as of June 15, 2026 will be eligible to receive the dividend.

How large is the CBK share repurchase program announced April 27, 2026?

The board authorized a $10 million repurchase program expiring April 30, 2027. According to the company, repurchases may occur in the open market, via negotiated transactions, or under Rule 10b5-1 plans.

When will Commercial Bancgroup (CBK) pay the declared dividend?

The declared quarterly cash dividend is payable on June 30, 2026. According to the company, the record date for eligibility is the close of business on June 15, 2026.

How will Commercial Bancgroup (CBK) fund the $10 million repurchase program?

Commercial intends to fund the repurchase program with a combination of cash on hand and cash generated from operations. According to the company, repurchased shares will become authorized but unissued shares.

Does the CBK repurchase program guarantee a specific number of shares will be bought?

No, the repurchase program does not obligate Commercial to repurchase any particular amount. According to the company, timing and amount depend on stock price, capital planning, market conditions, and legal requirements.