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

Written by

HARROGATE, TN / ACCESS Newswire / 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.

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

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

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

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 Liabilities		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

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


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

QTD Average Balances and Yields/Rates (unaudited)														Table 4
	Three Months Ended
(dollars in thousands)	March 31, 2026								December 31, 2025
	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	%

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	%

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

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	%

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	%

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

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.

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 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

		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	%

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

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.

SOURCE: Commercial Bancgroup, Inc.