HARROGATE, TN / ACCESS Newswire / July 27, 2026 / Commercial Bancgroup, Inc. (“Commercial” or the “Company”) (NASDAQ:CBK), the parent company of Commercial Bank (the “Bank”), today announced net income of $10.2 million, or $0.75 per common share, for the second quarter of 2026, compared to net income of $8.9 million, or $0.73 per common share, for the second quarter of 2025. Core (net of any one-time adjustments) net income was $10.2 million, or $0.75 per common share, for the second quarter of 2026, compared to core net income of $9.1 million, or $0.75 per common share, for the second quarter of 2025.

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

  • effective upon the filing of the amended and restated charter, the reclassification and conversion of (i) each outstanding share of Class B common stock into 1.15 shares of common stock and (ii) each outstanding share of Class C common stock into 1.05 shares of common stock (collectively, the “Stock Reclassification”); and

  • effective immediately following the Stock Reclassification, a 250-for-1 forward stock split in respect of the outstanding shares of our common stock (the “Stock Split”).

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

Second Quarter 2026 Performance Highlights:

  • Net income of $10.2 million or $0.75 per common share; Core net income of $10.2 million or $0.75 per common share (see non-GAAP reconciliation)

  • Return on average assets (“ROAA”) of 1.78%; Core ROAA of 1.78% (see non-GAAP reconciliation)

  • Return on average equity (“ROAE”) of 13.73%; Core ROAE of 13.73% (see non-GAAP reconciliation)

  • Return on average tangible common equity (“ROATCE”) of 14.26%; Core ROATCE of 14.26% (see non-GAAP reconciliation)

  • Net interest margin of 4.06%, an increase of 18 basis points from the first quarter of 2026

  • Core efficiency ratio of 44.99% (see non-GAAP reconciliation)

  • Loans outstanding net of deferred fees and discounts increased $48.4 million during the quarter, or 2.6% from the first quarter of 2026

  • Book value per share increased $0.66, or 3.1%, to $22.09 and tangible book value per share increased $0.68, or 3.3%, to $21.28 at June 30, 2026 from $21.43 and $20.60, respectively, at March 31, 2026 (see non-GAAP reconciliation)

  • Net charge-offs to average loans of 0.00% and nonperforming assets to total assets of 0.31%

Year-To-Date Highlights:

  • Net income of $19.8 million or $1.44 per common share for the six months ended June 30, 2026, compared to $17.6 million or $1.44 per common share for the six months ended June 30, 2025

  • ROAA of 1.72% for the six months ended June 30, 2026, compared to 1.55% for the six months ended June 30, 2025

  • ROAE of 13.48% for the six months ended June 30, 2026, compared to 15.71% for the six months ended June 30, 2025

  • Total operating revenue of $47.2 million for the six months ended June 30, 2026, compared to $44.1 million for the six months ended June 30, 2025

  • Non-interest expense of $22.0 million for the six months ended June 30, 2026, compared to $21.3 million for the six months ended June 30, 2025

  • Book value per share of $22.09 as of June 30, 2026, compared to $19.22 as of June 30, 2025

  • Tangible book value per share of $21.28 as of June 30, 2026, compared to $18.22 as of June 30, 2025 (see non-GAAP reconciliation)

  • Core efficiency ratio of 45.2% for the six months ended June 30, 2026, compared to 47.7% for the six months ended June 30, 2025 (see non-GAAP reconciliation)

Balance Sheet Trends

Total assets were $2.4 billion as of June 30, 2026, compared to $2.3 billion as of June 30, 2025.

Loans outstanding net of deferred fees and discounts were $1.9 billion as of June 30, 2026, an increase of $149.0 million, or 8.3%, from June 30, 2025.

As of June 30, 2026, the Bank exceeded the minimum requirements to be well-capitalized for bank regulatory purposes, with a total risk-based capital ratio of 14.0%, a Tier 1 risk-based capital ratio of 13.0%, a common equity Tier 1 capital ratio of 13.0%, and a Tier 1 leverage ratio of 11.6%.

Total deposits were $1.9 billion as of June 30, 2026, an increase of $21.9 million, or 1.2%, from June 30, 2025.

Noninterest bearing demand deposits increased $12.7 million, or 3.0%, to $428.4 million as of June 30, 2026, from $415.7 million as of June 30, 2025.

Non-brokered deposits were $1.8 billion as of June 30, 2026, an increase of $91.8 million, or 5.3%, from June 30, 2025. This increase was primarily driven by normal customer business cycles and deposit growth.

Asset quality declined slightly with nonperforming assets to total assets of 0.31% as of June 30, 2026 as compared to 0.30% as of June 30, 2025. The allowance for credit losses to total loans decreased to 0.96% as of June 30, 2026 from 1.00% as of June 30, 2025.

Net Income Before Income Taxes

Net income before income taxes was $12.9 million for the three months ended June 30, 2026, an increase of $1.3 million, or 11.6%, from the three months ended June 30, 2025. The increase was primarily the result of an increase in net interest income after provision for credit losses of $1.1 million or 5.3% and an increase in non-interest income of $0.4 million or 19.2%. These increases were offset by an increase of noninterest expense of $0.1 million or 1.4%.

Non-Interest Income

Non-interest income was $2.7 million for the three months ended June 30, 2026, an increase of $0.4 million, or 19.2%, as compared to the three months ended June 30, 2025. This increase was primarily due to an increase in customer service and ATM fees.

About Commercial Bancgroup, Inc.

Commercial Bancgroup, Inc. is a bank holding company headquartered in Harrogate, Tennessee. Through our wholly owned subsidiary, Commercial Bank, a Tennessee state-chartered bank, we offer a suite of traditional consumer and commercial banking products and services to businesses and individuals in select markets in Kentucky, North Carolina, and Tennessee. More information about Commercial can be found on its website at www.cbtn.com.

Commercial Bancgroup, Inc.
Financial Tables

Financial Highlights (Unaudited)

Table 1A

For the Three Months Ended

As of and for the Six
Months Ended
(dollars in thousands except per share amounts)

June 30,
2026

March 31,
2026

December 31, 2025

September 30, 2025

June 30,
2025

June 30,
2026

June 30,
2025
Selected Operating Data:
Interest and Dividend Income

$

30,154

$

29,463

$

29,958

$

30,021

$

30,859

$

59,617

$

61,625
Interest Expense

8,639

8,985

9,148

9,799

10,800

17,624

22,226
Net Interest Income

21,515

20,478

20,810

20,222

20,059

41,993

39,399
Provision for Credit Losses

399

122

463

–

–

521

–
Net Interest Income After
Provision for Credit Losses

21,116

20,356

20,347

20,222

20,059

41,472

39,399
Noninterest Income

2,650

2,591

2,667

2,626

2,224

5,241

4,667
Noninterest Expense

10,872

11,087

10,623

10,552

10,725

21,959

21,306
Income Before Income Taxes

12,894

11,860

12,391

12,296

11,558

24,754

22,760
Provision for Income Taxes

2,678

2,326

2,224

2,829

2,658

5,004

5,168
Net Income

10,216

9,534

10,167

9,467

8,900

19,750

17,592
Less: Net Income Attributable to Noncontrolling Interest

–

–

–

–

–

–

–
Net Income attributable to Commercial Bancgroup, Inc.

10,216

9,534

10,167

9,467

8,900

19,750

17,592
Add: Non-recurring Expense Net of Taxes

–

470

–

–

226

470

231
Core Net Income (1)

10,216

10,004

10,167

9,467

9,126

20,220

17,823

(1) Considered non-GAAP financial measure – See “Non-GAAP Financial Measures” and reconciliation of non-GAAP financial measures at table 10

Financial Highlights (Unaudited)

For the Three Months Ended

As of and for the Six
Months Ended

June 30,
2026

March 31,
2026

December 31,
2025

September 30, 2025

June 30,
2025

June 30,
2026

June 30,
2025
Share and Per Share Data:
Basic earnings per share

$

0.75

$

0.70

$

0.74

$

0.77

$

0.73

$

1.44

$

1.44
Diluted earnings per share

$

0.74

$

0.70

$

0.74

$

0.77

$

0.73

$

1.44

$

1.44
Core (net of any one-time
adjustments) net income per
share (1)

$

0.75

$

0.73

$

0.74

$

0.77

$

0.75

$

1.48

$

1.46
Book value per share

$

22.09

$

21.43

$

20.83

$

20.03

$

19.22

$

22.09

$

19.22
Tangible book value
per share (1)

$

21.28

$

20.60

$

19.98

$

19.05

$

18.22

$

21.28

$

18.22
Shares of common stock
outstanding

13,701,270

13,697,987

13,697,987

12,239,644

12,239,644

13,701,270

12,239,644
Weighted average common
shares outstanding

13,700,296

13,697,987

13,697,987

12,239,644

12,239,644

13,699,148

12,188,624
Weighted average diluted shares
outstanding

13,722,727

13,712,162

13,704,030

12,240,568

12,239,644

13,721,579

12,188,624

(1) Considered non-GAAP financial measure – See “Non-GAAP Financial Measures” and reconciliation of non-GAAP financial measures at table 10

Financial Highlights (Unaudited)

As of and for the Three Months Ended

As of and for the Six
Months Ended
(dollars in thousands)

June 30,
2026

March 31,
2026

December 31, 2025

September 30, 2025

June 30,
2025

June 30,
2026

June 30,
2025
Selected Balance Sheet Data:
Total assets

$

2,376,584

$

2,328,789

$

2,291,455

$

2,214,408

$

2,262,511

$

2,376,584

$

2,262,511
Securities available-for-sale at
fair value

38,553

42,175

43,137

29,556

30,113

38,553

30,113
Securities held-to-maturity, at
carrying value, net of
allowance for credit losses

94,343

96,387

97,728

131,915

157,452

94,343

157,452
Loans outstanding net of
deferred fees and discounts

1,940,536

1,892,174

1,873,533

1,767,193

1,791,516

1,940,536

1,791,516
Allowance for credit losses

18,722

18,329

18,096

17,942

17,989

18,722

17,989
Goodwill and other intangible
assets

12,012

12,392

12,767

13,149

13,546

12,012

13,546
Total deposits

1,873,172

1,892,217

1,815,734

1,780,634

1,851,248

1,873,172

1,851,248
Core deposits (1)

1,709,887

1,744,967

1,663,931

1,630,897

1,628,181

1,709,887

1,628,181
Other borrowings

175,817

118,248

166,838

162,760

148,509

175,817

148,509
Total Shareholders’ equity

302,618

293,518

285,344

245,153

235,268

302,618

235,268

(1) Considered non-GAAP financial measure – See “Non-GAAP Financial Measures” and reconciliation of non-GAAP financial measures at table 10

Financial Highlights (unaudited)

Table 1B

As of and for the Three Months Ended

As of and for the Six
Months Ended
(dollars in thousands)

June 30,
2026

March 31,
2026

December 31, 2025

September 30, 2025

June 30,
2025

June 30,
2026

June 30,
2025
Performance Ratios:
Pre-tax pre-provision net income
(PPNI) (1)

$

13,293

$

11,982

$

12,854

$

12,296

$

11,558

$

25,275

$

22,760
Return on average assets (ROAA)

1.78

1.66

1.81

1.74

1.57

1.72

1.55
Return on average equity (ROAE)

13.73

13.22

15.46

15.81

15.57

13.48

15.71
Core return on average assets
(ROAA)(1)

1.78

1.74

1.81

1.74

1.62

1.76

1.57
Return on average tangible common equity (ROATCE) (1)
equity (ROATCE) (1)

14.26

13.76

16.40

16.65

16.43

14.02

16.94
Net interest rate spread

3.44

3.27

3.34

3.32

3.11

3.35

3.07
Net interest margin

4.06

3.88

4.01

4.02

3.84

3.97

3.73
Cost of Funds

1.75

1.82

1.88

2.07

2.18

1.78

2.21

Efficiency ratio

44.99

48.06

45.25

46.18

48.13

46.49

48.35
CORE efficiency ratio (1)

44.99

45.45

45.25

46.18

46.78

45.21

47.65
Noninterest income to average assets

0.46

0.45

0.47

0.48

0.39

0.46

0.41
Noninterest expense to average assets

1.89

1.93

1.87

1.94

1.91

1.91

1.88
Average interest-earning assets to
average interest-bearing liabilities

1.38

1.36

1.38

1.36

1.31

1.37

1.31
Average equity to average total assets

0.13

0.13

0.12

0.11

0.10

0.13

0.10

(1) Considered non-GAAP financial measure – See “Non-GAAP Financial Measures” and reconciliation of non-GAAP financial measures at table 10

Financial Highlights (unaudited)

As of and for the Three Months Ended

As of and for the Six
Months Ended

June 30,
2026

March 31,
2026

December 31,
2025

September 30, 2025

June 30,
2025

June 30,
2026

June 30,
2025
Asset Quality Data:
Net charge-offs to average loans

0.00

%

0.01

%

0.01

%

0.00

%

0.01

%

-0.01

%

0.01

%
Total allowance for credit losses
to total loans

0.96

%

0.97

%

0.97

%

1.02

%

1.00

%

0.96

%

1.00

%
Total allowance for credit losses
to nonperforming loans

281

%

313

%

290

%

333

%

307

%

281

%

307

%
Nonperforming loans to gross
loans

0.34

%

0.31

%

0.33

%

0.31

%

0.33

%

0.34

%

0.33

%
Nonperforming assets to total
assets

0.31

%

0.28

%

0.28

%

0.27

%

0.30

%

0.31

%

0.30

%

Financial Highlights (Unaudited)

As of and for the Three Months Ended

As of and for the Six
Months Ended

June 30,
2026

March 31,
2026

December 31, 2025

September 30, 2025

June 30,
2025

June 30,
2026

June 30,
2025
Balance Sheet and Capital Ratios (Commercial Bancgroup, Inc.):
Loan-to-deposit ratio

102.60

%

99.03

%

102.19

%

98.24

%

95.80

%

102.60

%

95.80

%
Noninterest bearing deposits to
total deposits

22.87

%

21.22

%

21.91

%

22.39

%

22.53

%

22.87

%

22.53

%
Total shareholders’ equity to total
assets

12.73

%

12.60

%

12.45

%

11.07

%

10.40

%

12.73

%

10.40

%
Tangible common equity to
tangible assets (1)

12.33

%

12.18

%

12.01

%

10.59

%

9.92

%

12.33

%

9.92

%
Tier 1 leverage ratio

12.70

%

12.32

%

12.19

%

11.03

%

10.22

%

12.70

%

10.22

%
Common equity tier 1 ratio

14.55

%

14.73

%

14.99

%

12.83

%

12.26

%

14.55

%

12.26

%
Total risk-based capital ratio

15.48

%

15.68

%

15.96

%

14.12

%

13.55

%

15.48

%

13.55

%
Other
Number of branches

34

34

34

34

34

34

34
Number of full-time equivalent
employees

293

287

287

287

289

293

289

(1) Considered non-GAAP financial measure – See “Non-GAAP Financial Measures” and reconciliation of non-GAAP financial measures at table 10

Quarter End Balance Sheets (unaudited)

Table 2
(dollars in thousands)

June 30,
2026

March 31,
2026

December 31,
2025

September 30, 2025

June 30,
2025
Assets
Cash and due from banks

$

161,327

$

151,610

$

118,989

$

122,945

$

108,501
Federal funds sold

8,787

16,784

25,329

31,841

42,782
Investment securities

132,896

138,562

140,865

161,471

187,565
Gross loans less deferred fees and discounts

1,940,536

1,892,174

1,873,533

1,767,193

1,791,516
Allowance for credit losses

(18,722

)

(18,329

)

(18,096

)

(17,942

)

(17,989

)
Loans, net of allowance for credit losses

1,921,813

1,873,845

1,855,437

1,749,251

1,773,527
Premises and equipment, net

50,145

49,445

49,765

50,268

50,337
Foreclosed assets held for sale, net

755

575

253

533

861
Bank owned life insurance

46,619

46,469

46,648

46,482

46,480
Goodwill and other intangible assets

12,012

12,392

12,767

13,149

13,546
Deferred tax asset

1,076

1,056

1,003

1,427

1,029
Other

41,153

38,049

40,399

37,041

37,883
Total Assets

$

2,376,584

$

2,328,789

$

2,291,455

$

2,214,408

$

2,262,511
Liabilities and Shareholders’ Equity
Liabilities
Deposits
Demand

942,633

973,678

913,986

928,958

926,886
Savings, NOW and money market

413,904

415,132

414,716

382,002

382,788
Time

516,635

503,408

487,032

469,674

541,574
Total deposits

1,873,172

1,892,217

1,815,734

1,780,634

1,851,248
Short-term borrowings

102,570

45,068

88,251

62,663

46,300
Long-term debt

73,247

73,181

78,587

100,097

102,209
Interest Payable

2,575

2,644

2,962

3,410

4,545
Other Liabilities

22,402

22,161

20,576

22,451

22,941
Total Liabilities

2,073,966

2,035,271

2,006,110

1,969,255

2,027,243
Shareholders’ Equity
Common stock

137

137

137

122

122
Additional paid-in capital

38,683

38,536

38,377

8,406

8,406
Retained earnings

264,515

255,670

247,505

237,366

227,900
Accumulated other comprehensive loss

(717

)

(825

)

(675

)

(741

)

(1,160

)
Total Shareholders’ equity

302,618

293,518

285,344

245,153

235,268
Total liabilities and shareholders’ equity

$

2,376,584

$

2,328,789

$

2,291,454

$

2,214,408

$

2,262,511
Statement of Operations (unaudited)

Table 3

For the Three Months Ended

As of and for the Six
Months Ended
(dollars in thousands)

June 30,
2026

March 31,
2026

December 31, 2025

September 30, 2025

June 30,
2025

June 30,
2026

June 30,
2025
Interest and Dividend Income
Loans, including fees

$

28,396

$

27,675

$

27,866

$

28,074

$

28,432

$

56,071

$

56,362
Debt securities-taxable

832

838

739

929

1,070

1,670

2,045
Debt securities-tax-exempt

109

114

114

102

116

223

226
Dividends on restricted stock

151

147

157

156

148

298

308
Interest-bearing deposits

666

689

1,082

760

1,093

1,355

2,684
Total interest and dividend income

30,154

29,463

29,958

30,021

30,859

59,617

61,625
Interest expense
Deposits

8,032

8,315

8,441

8,654

9,717

16,347

20,011
Short-term borrowings

40

47

18

55

44

87

75
Long-term debt

567

623

689

1,090

1,039

1,190

2,140
Total interest expense

8,639

8,985

9,148

9,799

10,800

17,624

22,226
Net interest income

21,515

20,478

20,810

20,222

20,059

41,993

39,399
Provision for credit losses

399

122

463

–

–

521

–
Net interest income after provision for credit losses

21,116

20,356

20,347

20,222

20,059

41,472

39,399
Noninterest Income
Customer service fees

774

781

779

735

674

1,555

1,329
Net gains on sales of premises and equipment

30

–

44

20

32

30

4
Net gains on sales of foreclosed assets

–

107

48

110

–

107

3
ATM fees

977

854

877

846

892

1,831

1,691
Increase in BOLI

315

312

342

306

336

627

644
Other

554

537

577

609

290

1,091

996
Total noninterest income

2,650

2,591

2,667

2,626

2,224

5,241

4,667
Noninterest Expense
Salaries and employee benefits

$

5,683

$

5,716

$

5,753

$

5,729

$

5,657

$

11,399

$

11,283
Occupancy

856

843

877

738

916

1,699

1,791
Data processing

1,099

1,101

1,068

1,103

1,151

2,200

2,358
Deposit insurance premiums

202

242

234

267

245

444

471
Professional fees

440

209

229

136

286

649

481
Depreciation and amortization

942

933

1,001

955

803

1,875

1,751
Other

1,650

1,440

1,461

1,624

1,667

3,090

3,171
Loss on retirement of debt

–

603

–

–

–

603

–
Total noninterest expense

10,872

11,087

10,623

10,552

10,725

21,959

21,306
Income before income taxes

12,894

11,860

12,391

12,296

11,558

24,754

22,760
Provision for income taxes

2,678

2,326

2,224

2,829

2,658

5,004

5,168
Net Income

10,216

9,534

10,167

9,467

8,900

19,750

17,592
Less: Net Income Attributable to Noncontrolling Interest

–

–

–

–

–

–

–
Net Income attributable to Commercial Bancgroup, Inc.

$

10,216

$

9,534

$

10,167

$

9,467

$

8,900

$

19,750

$

17,592

QTD Average Balances and Yields/Rates (unaudited)

Table 4

Three Months Ended
(dollars in thousands)

June 30, 2026

March 31, 2026

December 31, 2025

Average Balance

Interest

Yield/ Rate

Average Balance

Interest

Yield/ Rate

Average Balance

Interest

Yield/ Rate
Interest Earning Assets
Gross loans, net of unearned
income

$

1,902,119

$

28,396

6.0

%

$

1,883,103

$

27,675

5.9

%

$

1,807,127

$

27,866

6.2

%
Investment securities

138,726

1,092

3.1

%

140,223

1,099

3.1

%

152,782

1,010

2.6

%
Other interest-earning assets

77,015

666

3.5

%

85,953

689

3.2

%

116,517

1,082

3.7

%
Total interest-earning assets

2,117,860

30,154

5.7

%

2,109,279

29,463

5.6

%

2,076,426

29,958

5.8

%
Noninterest-earning assets:
Allowance for credit losses

(18,497

)

(18,283

)

(17,954

)
Noninterest-earning assets

202,388

205,119

190,810
Total Assets

2,301,751

2,296,115

2,249,282
Interest-bearing liabilities:
Interest-bearing DDAs

540,531

2,501

1.9

%

575,981

2,809

2.0

%

518,495

2,647

2.0

%
NOW, savings and MMDA deposits

417,468

1,415

1.4

%

412,533

1,425

1.4

%

427,419

1,585

1.5

%
Time Deposits

494,379

4,116

3.3

%

479,804

4,081

3.4

%

475,972

4,209

3.5

%
Federal Home Loan bank advances

60,270

452

3.0

%

60,522

467

3.1

%

60,781

444

2.9

%
Other borrowings

18,050

155

3.4

%

20,355

203

4.0

%

24,953

263

4.2

%
Total interest-bearing liabilities

1,530,698

8,639

2.3

%

1,549,195

8,985

2.3

%

1,507,620

9,148

2.4

%
Noninterest bearing liabilities:
Noninterest bearing deposits

444,701

430,842

434,578
Other liabilities

28,723

27,593

47,299
Total noninterest bearing liabilities

473,424

458,435

481,877
Shareholders’ equity

297,631

288,485

259,785
Total liabilities and shareholders’s
equity

2,301,753

2,296,115

2,249,282
Net interest income

21,515

20,478

20,810
Net interest spread

3.44

%

3.27

%

3.40

%
Net interest margin

4.06

%

3.88

%

4.01

%
Cost interest bearing deposits

1.69

%

1.75

%

1.82

%
Cost of funds

1.75

%

1.82

%

1.88

%

YTD Average Balances and Yields/Rates (unaudited)

Table 5

Six Months Ended

June 30, 2026

June 30, 2025
(dollars in thousands)

Average Balance

Interest

Yield/ Rate

Average Balance

Interest

Yield/ Rate
Interest Earning Assets
Gross loans, net of unearned
income

1,892,611

56,071

5.9

%

1,795,846

56,362

6.3

%
Investment securities

139,475

2,191

3.1

%

186,623

2,579

2.8

%
Other interest-earning assets

81,484

1,355

3.3

%

128,525

2,684

4.2

%
Total interest-earning assets

2,113,570

59,617

5.6

%

2,110,994

61,625

5.8

%
Noninterest-earning assets:
Allowance for credit losses

(18,390

)

(18,242

)
Noninterest-earning assets

203,754

176,107
Total Assets

2,298,934

2,268,859
Interest-bearing liabilities:
Interest-bearing DDAs

558,256

5,310

1.9

%

552,539

6,277

2.3

%
NOW, savings and MMDA deposits

415,001

2,840

1.4

%

388,331

2,922

1.5

%
Time Deposits

487,092

8,197

3.4

%

557,517

10,813

3.9

%
Federal Home Loan bank advances

60,396

919

3.0

%

63,534

74

0.2

%
Other borrowings

19,203

358

3.7

%

44,774

2,140

9.6

%
Total interest-bearing liabilities

1,539,948

17,624

2.3

%

1,606,695

22,226

2.8

%
Noninterest bearing liabilities:
Noninterest bearing deposits

437,772

401,935
Other liabilities

28,158

36,319
Total noninterest bearing liabilities

465,930

438,254
Shareholders’ equity

293,058

223,912
Total liabilities and shareholders’s
equity

2,298,936

2,268,861
Net interest income

41,993

39,399
Net interest spread

3.35

%

3.07

%
Net interest margin

3.97

%

3.73

%
Cost of total deposits

1.72

%

2.11

%
Cost of total funding

1.78

%

2.21

%

Loan Data (unaudited)

Table 6

As of Quarter Ended

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025
(dollars in thousands)

Amount

% of Total

Amount

% of Total

Amount

% of Total

Amount

% of Total

Amount

% of Total
Real Estate Loans
Commercial

$

1,140,480

59

%

$

1,114,516

59

%

$

1,113,440

59

%

$

1,002,192

57

%

$

1,016,229

57

%
Construction and land
development

201,781

10

%

195,189

10

%

176,688

9

%

201,399

11

%

189,187

11

%
Residential

387,142

20

%

383,346

20

%

377,943

20

%

376,769

21

%

376,442

21

%
Other

18,336

1

%

14,511

1

%

14,824

1

%

14,831

1

%

15,290

1

%
Commercial

179,935

9

%

171,029

9

%

174,248

9

%

154,732

9

%

178,832

10

%
Consumer and other

19,535

1

%

19,497

1

%

22,867

1

%

23,651

1

%

22,408

1

%
Total loans

1,947,209

100

%

1,898,088

100

%

1,880,010

100

%

1,773,574

100

%

1,798,388

100

%
Deferred loan fees
and discounts

6,673

5,914

6,477

6,381

6,872
Allowance for credit
Losses

18,722

18,329

18,096

17,942

17,989
Loans, net

1,921,813

1,873,845

1,855,437

1,749,251

1,773,527

Nonperforming Assets (Unaudited)

Table 7

As of the Quarter Ended
(dollars in thousands)

June 30,
2026

March 31,
2026

December 31,
2025

September 30, 2025

June 30,
2025
Nonaccrual loans

$

6,661

$

5,861

$

6,245

$

5,390

$

5,846
Past due loans 90 days and still
accruing

–

–

–

–

6
Total nonperforming loans

6,661

5,861

6,245

5,390

5,852
Other real estate owned

755

575

253

533

861
Total nonperforming assets

$

7,416

$

6,436

$

6,498

$

5,923

$

6,713
Allowance for credit losses

$

18,722

$

18,329

$

18,096

$

17,942

$

17,989
Total loans outstanding at end of
period net of deferred loan fees
and discounts

$

1,940,536

$

1,892,174

$

1,873,533

$

1,767,193

$

1,791,516
Nonperforming loans to total loans

0.34

%

0.31

%

0.33

%

0.31

%

0.33

%
Nonperforming assets to total loans
and OREO

0.38

%

0.34

%

0.35

%

0.34

%

0.37

%
Allowance for credit losses to
nonperforming loans

281

%

313

%

290

%

333

%

307

%
Allowance for credit losses to total
loans

0.96

%

0.97

%

0.97

%

1.02

%

1.00

%
Nonaccrual loans to total assets

0.28

%

0.25

%

0.27

%

0.24

%

0.26

%
Nonperforming assets to total assets

0.31

%

0.28

%

0.28

%

0.27

%

0.30

%

Allowance for credit losses (unaudited)

Table 8

As of and for the Three Months Ended

As of and for the Six
Months Ended
(dollars in thousands)

June 30,
2026

March 31,
2026

December 31, 2025

September 30, 2025

June 30,
2025

June 30,
2026

June 30,
2025
Average loans outstanding

$

1,902,136

$

1,883,103

$

1,807,127

$

1,767,379

$

1,794,477

$

1,892,611

$

1,795,846
Total loans outstanding at end of
period net of deferred loan fees
and discounts

1,940,536

1,892,174

1,873,533

1,767,193

1,791,516

1,940,536

1,791,516
ACL balance, beginning of
period

18,329

18,096

17,942

17,989

18,109

18,096

18,205
Charge-offs:
Commercial real estate

–

–

(284

)

–

(18

)

–

(18

)
Construction and land development

–

–

–

–

–

–

–
Residential real estate

–

–

–

–

(121

)

–

(121

)
Commercial

–

–

(48

)

–

–

–

(314

)
Consumer and other

(18

)

(15

)

(13

)

(186

)

(34

)

(33

)

(51

)
Total charge-offs

(18

)

(15

)

(345

)

(186

)

(173

)

(33

)

(504

)
Recoveries:
Commercial real estate

–

114

–

108

33

114

43
Construction and land

–
development

–

–

–

–

–

–

202
Residential real estate

1

–

20

26

2

1

18
Commercial

1

1

7

1

3

2

3
Consumer and other

5

11

56

4

15

16

22
Total recoveries

7

126

83

139

53

133

288
Net (charge-offs) recoveries

(11

)

111

(262

)

(47

)

(120

)

100

(216

)
Provision for credit losses

404

122

416

–

–

526

–
ACL balance at end of period

$

18,722

$

18,329

$

18,096

$

17,942

$

17,989

$

18,722

$

17,989
Ratio of allowance to end of
period loans

0.96

%

0.97

%

0.97

%

1.02

%

1.00

%

0.96

%

1.00

%
Ratio of net (charge-offs)
recoveries to average loans

0.00

%

0.01

%

-0.01

%

0.00

%

-0.01

%

0.01

%

-0.01

%

Loan Risk Ratings (Unaudited)

Table 9

As of the Quarter Ended
(dollars in thousands)

June 30,
2026

March 31,
2026

December 31,
2025

September 30, 2025

June 30,
2025
Real Estate Loans
Commercial
Pass

$

1,131,324

$

1,105,529

$

1,104,532

$

999,788

$

1,012,190
Special mention

8,835

8,897

8,814

1,776

2,515
Substandard

321

90

94

628

1,524
Total Commercial

$

1,140,480

$

1,114,516

$

1,113,440

$

1,002,192

$

1,016,229
Construction and land development
Pass

$

201,389

$

194,983

$

176,014

$

201,363

$

189,149
Special mention

359

171

78

–

–
Substandard

32

35

596

36

38
Total Construction and land
development

$

201,781

$

195,189

$

176,688

$

201,399

$

189,187
Residential
Pass

$

380,157

$

377,179

$

371,583

$

371,226

$

371,353
Special mention

631

545

833

838

849
Substandard

6,354

5,622

5,527

4,705

4,240
Total Residential

$

387,142

$

383,346

$

377,943

$

376,769

$

376,442
Other
Pass

$

18,336

$

14,511

$

14,824

$

14,831

$

15,290
Special mention

–

–

–

–

–
Substandard

–

–

–

–

–
Total Other

$

18,336

$

14,511

$

14,824

$

14,831

$

15,290
Commercial
Pass

$

179,002

$

170,093

$

173,324

$

153,819

$

177,969
Special mention

685

701

793

733

747
Substandard

248

235

131

180

116
Total Commercial

$

179,934

$

171,029

$

174,248

$

154,732

$

178,832
Consumer and Other
Pass

$

19,423

$

19,399

$

22,768

$

23,616

$

22,367
Special mention

34

44

21

5

6
Substandard

78

54

79

30

36
Total Consumer

$

19,535

$

19,497

$

22,868

$

23,651

$

22,409
Total loans
Pass

$

1,929,632

$

1,881,694

$

1,863,045

$

1,764,643

$

1,788,318
Special mention

10,543

10,358

10,539

3,352

4,117
Substandard

7,034

6,036

6,427

5,579

5,954
Total Gross loans

$

1,947,209

$

1,898,088

$

1,880,011

$

1,773,574

$

1,798,389

Non-GAAP Financial Measures

This press release contains certain financial measure(s) that are not financial measure(s) recognized under generally accepted accounting principles in the U.S. (“GAAP”) and, therefore, are considered non-GAAP financial measure(s) and should be read along with the accompanying reconciliation of non-GAAP financial measure(s) to GAAP financial measure(s). We use non-GAAP financial measures, certain of which are included in this press release, both to explain our operating results to shareholders and the investment community and to evaluate, analyze, and manage our business. We believe that these non-GAAP financial measures provide a better understanding of ongoing operations, enhance the comparability of results across periods, and enable investors to better understand our performance. Our management believes that the “core” metrics described below and used in this press release assist users of the Company’s financial statements with their financial analysis period-over-period as they exclude certain non-recurring items. However, non-GAAP financial measures should not be considered in isolation and should be considered supplemental in nature and not as a substitute for or superior to the most directly comparable or other financial measures calculated in accordance with GAAP. Additionally, the manner in which the non-GAAP financial measure(s) contained in this press release are calculated may differ from the manner in which measures with similar names are calculated by other companies. You should understand how other companies calculate their financial measures similar to, or with names similar to, the non-GAAP financial measure(s) contained in this press release when comparing such financial measures.

The non-GAAP financial measures in this press release include the following:

  • Core deposits. We calculate core deposits by excluding jumbo time deposits (deposits greater than or equal to $250,000) from total deposits.

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

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

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

  • Core return on average tangible common equity. We define core return on average tangible common equity as core net income divided by total average shareholders’ equity less average intangible assets (goodwill and core deposit intangibles).

  • Pre-tax pre-provision net income. We define pre-tax pre-provision net income as pre-tax net income plus provision for loan and lease losses.

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

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

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

  • Return on average tangible common equity ROATCE. We define return on average tangible common equity ROATC as net income divided by average common equity calculated based as total average shareholders’ equity less average intangible assets net of tax benefit.

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

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

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

Non-GAAP Reconciliations (unaudited)

As of and for the Three Months Ended

As of and for the Six
Months Ended
(dollars in thousands, except per share data)

June 30,
2026

March 31,
2026

December 31, 2025

September 30, 2025

June 30,
2025

June 30,
2026

June 30,
2025
Pre-Tax Pre-Provision
Net Income:
Pre-tax income

$

12,894

$

11,860

$

12,391

$

12,296

$

11,558

$

24,754

$

22,760
Add: provision for loan and lease
losses

399

122

463

–

–

521

–
Pre-tax pre-provision net income

$

13,293

$

11,982

$

12,854

$

12,296

$

11,558

$

25,275

$

22,760
Tangible Common Equity:
Shareholders’ equity

$

302,618

$

293,518

$

285,344

$

245,153

$

235,268

302,618

235,268
Less: non controlling interest

–
Less: goodwill

8,511

8,511

8,511

8,511

8,511

8,511

8,511
Less: core deposit intangible
(net of tax benefit)

2,594

2,875

3,164

3,448

3,744

2,594

3,744
Tangible common equity

$

291,513

$

282,132

$

273,669

$

233,194

$

223,013

$

291,513

$

223,013
Return on Average Tangible
Common Equity:
Total average shareholders’
equity

$

297,631

$

288,485

$

259,784

$

239,473

$

227,883

$

293,058

$

223,912
Less: average intangible assets
(net of tax benefit)

11,105

11,386

11,767

11,980

11,997

$

11,245

13,497
Less: average non controlling
interest

–

–

–

–

–

–

2,701
Average common tangible equity

286,526

277,099

248,017

227,493

215,886

281,813

207,714
Net income to shareholders

10,216

9,534

10,167

9,467

8,900

19,750

17,592
Return on average common
tangible equity

14.26

%

13.76

%

16.40

%

16.65

%

16.49

%

14.02

%

16.94

%
Tangible Book Value per
Share:
Tangible common equity

$

291,513

$

282,132

$

273,669

$

233,194

$

223,013

$

291,513

$

223,013
Shares of common stock
outstanding (weighted average)

13,700,296

13,697,987

13,697,987

12,239,644

12,239,644

13,699,148

12,188,624
Tangible book value per share,
reported

$

21.28

$

20.60

$

19.98

$

19.05

$

18.22

$

21.28

$

18.22

As of and for the Three Months Ended

As of and for the Six Months Ended
(dollars in thousands, except per share data)

June 30,
2026

March 31,
2026

December 31,
2025

September 30, 2025

June 30,
2025

June 30,
2026

June 30,
2025
Tangible Common Equity to Tangible Assets:
Tangible common equity

$

291,513

$

282,132

$

273,669

$

233,194

$

223,013

$

291,513

$

223,013
Total assets

2,376,584

2,328,789

2,291,455

2,214,408

2,262,511

2,376,584

2,262,511
Less: intangible assets

12,012

12,392

12,767

13,149

13,546

12,012

13,546
Tangible assets

2,364,572

2,316,397

2,278,688

2,201,258

2,248,965

2,364,572

2,248,965
Tangible common equity to
tangible assets

12.33

%

12.18

%

12.01

%

10.59

%

9.92

%

12.33

%

9.92

%
Core Deposits:
Total Deposits

$

1,873,172

$

1,892,217

$

1,815,734

$

1,780,634

$

1,851,248

$

1,873,172

1,851,248
Less: Time deposits
greater than $250,000

107,910

105,717

103,833

101,767

97,844

107,910

97,844
Less: Brokered deposits

55,375

41,533

47,970

47,970

125,223

55,375

125,223
Core deposits

$

1,709,887

$

1,744,967

$

1,663,931

$

1,630,897

$

1,628,181

$

1,709,887

$

1,628,181
Core Net Income:
Net income

$

10,216

$

9,534

$

10,167

$

9,467

$

8,900

$

19,750

$

17,592
Add: Non-recurring Expense

–

603

–

–

302

603

309
Less: tax effect

–

(133

)

–

–

(76

)

(133

)

(78

)
Core net income

$

10,216

$

10,004

$

10,167

$

9,467

$

9,126

$

20,220

17,823
Core Net Income per Share:
Core net income

$

10,216

$

10,004

$

10,167

$

9,467

$

9,126

$

20,220

$

17,823
Weighted average common
shares outstanding

13,700,296

13,697,987

13,697,987

12,239,644

12,239,644

13,699,148

12,188,624
Core net income per share

$

0.75

$

0.73

$

0.74

$

0.77

$

0.75

$

1.48

$

1.46
Core Return on Average Assets:
Core net income

$

10,216

$

10,004

$

10,167

$

9,467

$

9,126

$

20,220

$

17,823
Average assets

2,301,752

2,296,115

2,249,282

2,170,869

2,248,134

2,298,934

2,268,859
Core return on average assets

1.78

%

1.74

%

1.81

%

1.74

%

1.62

%

1.76

%

1.57

%
Core Return on Average
Tangible Common Equity:
Average tangible common equity

$

286,526

$

277,099

$

248,017

$

227,493

$

215,886

$

281,813

$

207,714
Core net income

10,216

10,004

10,167

9,467

9,126

20,220

17,823
Core return on average tangible
common equity

14.26

%

14.44

%

16.40

%

16.65

%

16.91

%

14.35

%

17.16

%
Core Efficiency Ratio:
Add: net interest income

$

21,515

$

20,478

$

20,810

$

20,222

$

20,059

$

41,993

$

39,399
Add: non interest income

2,650

2,591

2,667

2,626

2,224

5,241

4,667
Operating revenue

$

24,165

$

23,069

$

23,477

$

22,848

$

22,283

$

47,234

44,066
Total noninterest expenses

10,872

11,087

10,623

10,552

10,725

21,959

21,306
Less: non-recurring expenses

–

603

–

–

302

603

309
Core noninterest expenses

10,872

10,484

10,623

10,552

10,423

21,356

20,997
Core efficiency ratio

44.99

%

45.45

%

45.25

%

46.18

%

46.78

%

45.21

%

47.65

%

Efficiency ratio

44.99

%

48.06

%

45.25

%

46.18

%

48.13

%

46.49

%

48.35

%

Contacts:

Philip J. Metheny
Sr. Executive Vice President, Chief Financial Officer
Commercial Bancgroup, Inc.
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.

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Commercial Bancgroup, Inc.