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

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