Commercial Bancgroup 公佈第二季業績，淨收入1020萬美元按年增14.8%

EX-99.1
2
ea029912701ex99-1.htm
PRESS RELEASE OF COMMERCIAL BANCGROUP, INC., DATED JULY 27, 2026

 

Exhibit 99.1

 

 

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

 

HARROGATE, TN –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.

 

 2

  

 

 

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

 

 3

  

 

 

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

 

 4

  

 

 

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

 

 5

  

 

 

 
 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) 
  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%

 

 

 6

  

 

 

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

 

 7

  

 

 

 
 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 Liabilites 
  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 

 

 

 8

  

 

 

 
 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 

 

 

 9

  

 

 

 
   
 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 

 
 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 

 

 

 10

  

 

 

 QTD Average Balances and Yields/Rates
 (unaudited)
 Table 4

 

 
   
 Three Months Ended 

 
   
 June 30, 2026  
 March 31, 2026  
 December 31, 2025 

 
 (dollars in thousands) 
 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 liabilites: 
     
     
     
     
     
     
     
     
    

 
 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%

 

 

 11

  

 

 

 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 liabilites: 
     
     
     
     
     
    

 
 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%

 

 

 12

  

 

 

 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  
    

 

 

 13

  

 

 

 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%

 

 

 14

  

 

 

 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%

 

 

 15

  

 

 

 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 

 

 

 16

  

 

 

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.

 

 17

  

 

 

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 

 
 

 18

  

 

 

 
   
   
 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%

 
 

 19

  

 

 

Contacts

 

Philip J. Metheny

Sr. Executive Vice President, Chief Financial Officer

Commercial Bancgroup, Inc.

[email protected]

423-869-5151

 

Roger Mobley

Executive Vice President, Chief Financial Officer

Commercial Bank

[email protected]

704-648-0185

 

Source