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

Nine-month revenue increased, while higher expenses and a lower return on average equity tempered earnings growth.

Rhea-AI Summary

Commercial Bancgroup (NASDAQ:CBK) reported third-quarter 2026 net income of $10.9 million, up from the same quarter a year earlier. Diluted earnings per share rose to $0.79 from $0.77. Net interest margin reached 4.14%, up 8 basis points from the second quarter, while loans increased 2.2% during the quarter.

For the nine months ended September 30, 2026, net income reached $30.6 million, versus $27.1 million a year earlier, and operating revenue rose to $72.4 million from $66.9 million. Noninterest expense increased to $33.0 million from $31.9 million, and return on average equity fell to 13.71% from 15.75%. At September 30, loans totaled $2.0 billion and deposits totaled $1.9 billion, up 12.2% and 6.0%, respectively, year over year. Nonperforming assets rose to 0.31% of total assets from 0.27%. The Bank exceeded regulatory minimums for well-capitalized status.

16 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 5 points

How the balance works

Positive

• Moderate pointThird-quarter net income rose to $10.9 million from $9.5 million; diluted earnings increased to $0.79 from $0.77.
• Moderate pointNine-month operating revenue increased to $72.4 million from $66.9 million a year earlier.
• Moderate pointNet interest margin reached 4.14%, up 8 basis points from second-quarter 2026.
• Moderate pointLoans reached $2.0 billion, up $216.1 million, or 12.2%, year over year; quarterly growth was 2.2%.
• Moderate pointDeposits reached $1.9 billion, up $106.8 million, or 6.0%, from September 30, 2025.
• Moderate pointTotal assets increased to $2.4 billion from $2.2 billion at September 30, 2025.
• Moderate pointNine-month return on average assets increased to 1.76% from 1.61% a year earlier.
• Moderate pointNine-month core efficiency ratio improved to 44.7% from 47.1%; this non-GAAP measure tracks expenses against revenue.
• Moderate pointBook value per share reached $22.71, up 2.8% quarterly and from $20.03 at September 30, 2025.
• Moderate pointTangible book value per share reached $21.92, up 3.0% quarterly and from $19.05 a year earlier.

6 minor points

• Minor pointNine-month net income increased to $30.6 million from $27.1 million; diluted earnings rose to $2.23 from $2.22.
• Minor pointBank capital exceeded well-capitalized minimums, with a 14.2% total risk-based capital ratio at September 30, 2026.
• Minor pointThird-quarter net interest income after credit-loss provision increased $1.9 million, or 9.5%, year over year.
• Minor pointThird-quarter noninterest income increased 2.8% to $2.7 million, helped by ATM fees and bank-owned life insurance income.
• Minor pointThird-quarter pretax income increased 12.5% to $13.8 million from the same quarter in 2025.
• Minor pointThird-quarter net charge-offs relative to average loans were 0.00%.

Negative

• Moderate pointNine-month noninterest expense increased to $33.0 million from $31.9 million a year earlier.
• Moderate pointNine-month return on average equity declined to 13.71% from 15.75% a year earlier.
• Minor pointThird-quarter noninterest expense increased $0.4 million, or 4.3%, from the same quarter in 2025.
• Minor pointNonperforming assets rose to 0.31% of total assets from 0.27% at September 30, 2025.
• Minor pointCredit-loss allowance relative to total loans declined to 0.96% from 1.02% at September 30, 2025.

Key Figures

Net income: $10.9 million vs. $9.5 million Diluted EPS: $0.79 vs. $0.77 Net interest margin: 4.14%, up 8 basis points +2 more

Net income

$10.9 million vs. $9.5 million

Third quarter 2026 vs. third quarter 2025

Diluted EPS

$0.79 vs. $0.77

Third quarter 2026 vs. third quarter 2025

Net interest margin

4.14%, up 8 basis points

Third quarter 2026 vs. second quarter 2026

Return on average assets

1.84%

Third quarter 2026

Loans outstanding increase

$42.8 million, or 2.2%

During the third quarter of 2026 vs. second quarter 2026

Previous Earnings Reports

2 past events · Latest: Jul 27

Same Type 2 events

1. Jul 27

   Quarterly earnings

   24h Move

   +3.3%

   Q2 net income was $10.2 million and diluted EPS was $0.75, both above year-earlier levels.

2. Oct 27

   Quarterly earnings

   24h Move

   -1.6%

   Reported Q3 2025 net income of $9.5 million and diluted EPS of $0.77.

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

Key Terms

non-gaap, roaa, roae, net interest margin, +1 more

5 terms

non-gaap financial

"This press release contains certain financial measures that are not financial measures recognized"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

roaa financial

"Return on average assets ("ROAA") of 1.84%"

Return on Average Assets (ROAA) measures how efficiently a company turns its assets into profit by dividing net profit over a period by the average total assets it held during that period. It matters to investors because it shows whether a business is getting a good return from what it owns—like judging a car’s fuel efficiency by miles per gallon—helping compare profitability across companies of different sizes.

roae financial

"Return on average equity ("ROAE") of 14.16%"

ROAE stands for Return on Average Equity, a profitability ratio that shows how much net income a company generates for its owners relative to the average amount of shareholder equity invested over a period. It’s like measuring the interest rate a business pays its owners on the capital they’ve left in the company, with the ‘average’ smoothing out swings in equity during the year. Investors use ROAE to compare how efficiently different companies turn owner capital into profits and to assess management’s ability to deliver returns over time.

net interest margin financial

"Net interest margin of 4.14%, an increase of 8 basis points"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

common equity tier 1 capital ratio regulatory

"a common equity Tier 1 capital ratio of 13.3%"

A bank’s common equity tier 1 (CET1) capital ratio measures the size of its strongest loss-absorbing capital—mainly common shares and retained earnings—relative to the bank’s assets after adjusting those assets for how risky they are (riskier loans count more). Think of it as the safety cushion compared with the weight of risky business; investors use it to judge a bank’s ability to survive losses, meet rules, and sustain dividends or growth.

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

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

HARROGATE, TN / ACCESS Newswire / October 26, 2026 / Commercial Bancgroup, Inc. ("Commercial" or the "Company") (NASDAQ:CBK), the parent company of Commercial Bank (the "Bank"), today announced net income of $10.9 million, or $0.79 per diluted common share, for the third quarter of 2026, compared to net income of $9.5 million, or $0.77 per diluted common share, for the third quarter of 2025. Core (net of any one-time adjustments) net income was $10.9 million, or $0.79 per diluted common share, for the third quarter of 2026, compared to core net income of $9.5 million, or $0.77 per diluted common share, for the third quarter of 2025.

Prior to Commercial's initial public offering ("IPO") of its common stock in October 2025, Commercial had three classes of common stock outstanding: common stock, Class B common stock, and Class C common stock. On September 18, 2025, Commercial's charter was amended and restated. The Company's amended and restated charter provided for, among other things:

• effective upon the filing of the amended and restated charter, the reclassification and conversion of (i) each outstanding share of Class B common stock into 1.15 shares of common stock and (ii) each outstanding share of Class C common stock into 1.05 shares of common stock (collectively, the "Stock Reclassification"); and
• effective immediately following the Stock Reclassification, a 250-for-1 forward stock split in respect of the outstanding shares of the Company's common stock (the "Stock Split").

Our financial statements, including earnings per share and book value per share data, reflect the Stock Reclassification and Stock Split retroactively. Because the IPO occurred after September 30, 2025, the financial impacts of the IPO are reflected in the fourth quarter of 2025 in the financial statements presented in this press release.

Third Quarter 2026 Performance Highlights:

• Net income of $10.9 million or $0.79 per diluted common share; Core net income of $10.9 million or $0.79 per common share diluted (see non-GAAP reconciliation)
• Return on average assets ("ROAA") of 1.84%; Core ROAA of 1.84% (see non-GAAP reconciliation)
• Return on average equity ("ROAE") of 14.16%; Core ROAE of 14.16% (see non-GAAP reconciliation)
• Return on average tangible common equity ("ROATCE") of 14.68%; Core ROATCE of 14.68% (see non-GAAP reconciliation)
• Net interest margin of 4.14%, an increase of 8 basis points from the second quarter of 2026
• Core efficiency ratio of 43.68% (see non-GAAP reconciliation)
• Loans outstanding net of deferred fees and discounts increased $42.8 million during the quarter, or 2.2% from the second quarter of 2026
• Book value per share increased $0.62, or 2.8%, to $22.71 and tangible book value per share increased $0.64, or 3.0%, to $21.92 at September 30, 2026 from $22.09 and $21.28, respectively, at June 30, 2026 (see non-GAAP reconciliation)
• Net charge-offs to average loans of 0.00% and nonperforming assets to total assets of 0.31%

Year-To-Date Highlights:

• Net income of $30.6 million or $2.23 per diluted common share for the nine months ended September 30, 2026, compared to $27.1 million or $2.22 per diluted common share for the nine months ended September 30, 2025
• ROAA of 1.76% for the nine months ended September 30, 2026, compared to 1.61% for the nine months ended September 30, 2025
• ROAE of 13.71% for the nine months ended September 30, 2026, compared to 15.75% for the nine months ended September 30, 2025
• Total operating revenue of $72.4 million for the nine months ended September 30, 2026, compared to $66.9 million for the nine months ended September 30, 2025
• Noninterest expense of $33.0 million for the nine months ended September 30, 2026, compared to $31.9 million for the nine months ended September 30, 2025
• Book value per share of $22.71 as of September 30, 2026, compared to $20.03 as of September 30, 2025
• Tangible book value per share of $21.92 as of September 30, 2026, compared to $19.05 as of September 30, 2025 (see non-GAAP reconciliation)
• Core efficiency ratio of 44.7% for the nine months ended September 30, 2026, compared to 47.1% for the nine months ended September 30, 2025 (see non-GAAP reconciliation)

Balance Sheet Trends

Total assets were $2.4 billion as of September 30, 2026, compared to $2.2 billion as of September 30, 2025.

Loans outstanding net of deferred fees and discounts were $2.0 billion as of September 30, 2026, an increase of $216.1 million, or 12.2%, from September 30, 2025.

As of September 30, 2026, the Bank exceeded the minimum requirements to be well-capitalized for bank regulatory purposes, with a total risk-based capital ratio of 14.2%, a Tier 1 risk-based capital ratio of 13.3%, a common equity Tier 1 capital ratio of 13.3%, and a Tier 1 leverage ratio of 11.8%.

Total deposits were $1.9 billion as of September 30, 2026, an increase of $106.8 million, or 6.0%, from September 30, 2025.

Noninterest-bearing demand deposits increased $9.6 million, or 2.4%, to $408.2 million as of September 30, 2026, from $398.6 million as of September 30, 2025.

Non-brokered deposits were $1.8 billion as of September 30, 2026, an increase of $107.5 million, or 6.2%, from September 30, 2025. This increase was primarily driven by normal customer business cycles and deposit growth.

Nonperforming assets to total assets were 0.31% as of September 30, 2026, compared with 0.27% as of September 30, 2025. The allowance for credit losses to total loans was 0.96% and 1.02%, as of September 30, 2026 and September 30, 2025, respectively.

Net Income Before Income Taxes

Net income before income taxes was $13.8 million for the three months ended September 30, 2026, an increase of $1.5 million, or 12.5%, from the three months ended September 30, 2025. The increase was primarily the result of a $1.9 million, or 9.5%, increase in net interest income after provision for credit losses and a $0.1 million, or 2.8%, increase in noninterest income, partially offset by a $0.4 million, or 4.3%, increase in noninterest expense.

Noninterest Income

Noninterest income was $2.7 million for the three months ended September 30, 2026, an increase of $0.1 million, or 2.8%, compared to the three months ended September 30, 2025. The increase was primarily due to increases in ATM fees and bank-owned life insurance income.

About Commercial Bancgroup, Inc.

Commercial Bancgroup, Inc. is a bank holding company headquartered in Harrogate, Tennessee. Through our wholly owned subsidiary, Commercial Bank, a Tennessee state-chartered bank, we 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.

Non-GAAP Financial Measures

This press release contains certain financial measures that are not financial measures recognized under generally accepted accounting principles in the U.S. ("GAAP") and, therefore, are considered non-GAAP financial measures and should be read along with the accompanying reconciliation of non-GAAP financial measures to GAAP financial measures. 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 measures 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 measures 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 $250,000) and brokered deposits from total deposits.

• Core net income. We define core net income as net income plus non-recurring expenses, net of the related tax effect of non-recurring expenses.

• Core net income per share diluted. We define core net income per share diluted as core net income divided by weighted average diluted common shares outstanding.

• Core ROAA. We define core ROAA as core net income divided by average assets, with average assets based upon the average daily balance of total assets in each period.

• Core ROAE. We define core ROAE as core net income divided by average shareholders' equity, with average shareholders' equity based upon the average daily balance of total shareholders' equity in each period.

• Core ROATCE. We define core ROATCE as core net income divided by total average shareholders' equity less average intangible assets (goodwill and core deposit intangibles) net of tax impact.

• Pre-tax pre-provision net income (PPNI). We define pre-tax pre-provision net income as pre-tax net income plus provision for credit losses.

• Core efficiency ratio. We define core efficiency ratio as noninterest expenses (less non-recurring expenses), divided by operating revenue (net interest income plus total noninterest income). This ratio is an indicator used by our management to assess operating efficiencies and is intended to demonstrate how efficiently our management is controlling expenses relative to generating revenues on our core activities.

• Pre-tax, pre-provision ROAA. We define pre-tax, pre-provision ROAA as pre-tax, pre-provision net income divided by average assets calculated based upon the average daily balance of total assets in each period.

• Tangible assets. We define tangible assets as total assets less goodwill and other intangible assets.

• ROATCE. We define ROATCE as net income divided total average shareholders' equity less average intangible assets (goodwill and core deposit intangibles) net of tax impact.

• Tangible book value per share. We define tangible book value per share as our tangible common equity, which is shareholders' equity reduced by goodwill and other intangible assets, divided by total shares outstanding.

• Tangible common equity to tangible assets. We define tangible common equity to tangible assets as tangible common equity divided by tangible assets calculated as total assets net of intangible assets.

The following table provides a reconciliation of the above non-GAAP financial measures to their most directly comparable financial measure presented in accordance with GAAP.

Contacts

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

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

SOURCE: Commercial Bancgroup, Inc.

View the original press release on ACCESS Newswire

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Commercial Bancgroup's third-quarter 2026 earnings?

Commercial Bancgroup earned $10.9 million, or $0.79 per diluted common share, compared with $9.5 million, or $0.77 per diluted common share, in third-quarter 2025. Core earnings, which exclude one-time adjustments, matched reported earnings in both quarters.

How did Commercial Bancgroup's loans and deposits change through September 2026?

Loans net of deferred fees and discounts reached $2.0 billion, up 12.2% from September 30, 2025, while deposits reached $1.9 billion, up 6.0%. Loans also increased $42.8 million, or 2.2%, from the second quarter of 2026.

How do Commercial Bancgroup's stock split and IPO affect its earnings comparisons?

Commercial Bancgroup's financial statements retroactively reflect the stock reclassification and 250-for-1 forward stock split. The October 2025 IPO occurred after September 30, 2025, so its financial effects appear beginning in fourth-quarter 2025 rather than in the third-quarter 2025 comparison.

What were Commercial Bank's regulatory capital ratios at September 30, 2026?

Commercial Bank exceeded the regulatory minimums for well-capitalized status, with a 14.2% total risk-based capital ratio. Its Tier 1 risk-based capital ratio and common equity Tier 1 capital ratio were each 13.3%, and its Tier 1 leverage ratio was 11.8%.