Commercial Bancgroup, Inc. Announces Results for the Third Quarter 2026
Commercial Bancgroup, Inc. (CBK) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Commercial Bancgroup, Inc. Announces Results for the Third Quarter 2026 HARROGATE, TN – October 26, 2026 – Commercial Bancgroup, Inc. (“Commercial” or the “Company”) (Nasdaq: CBK), the parent company of Commercial Bank (the “Bank”), today announced net income of $10.
How this was made
The 30-second read
Why it matters
The earnings release provides fresh financial metrics that were not publicly available before this filing.
Market read
First‑report earnings data for a micro‑cap regional bank; may influence its stock and peers in the regional banking space.
What to watch
Potential impact of the recent stock split and reclassification on liquidity and share price dynamics.
Commercial Bancgroup reported third-quarter net income of $10.9 million, or $0.79 per diluted common share, with net interest margin of 4.14% and loans outstanding net of deferred fees and discounts of $2.0 billion.
Third-quarter net income, net interest income, net interest margin, book value per share and loans outstanding net of deferred fees and discounts all increased from both the prior-year quarter and the second quarter, while nonperforming assets to total assets increased from the prior-year period.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income, three months ended September 30, 2026GAAP | $10.87M | – | – |
| Core net income, three months ended September 30, 2026non-GAAP | $10.87M | – | – |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $ 0.79 | – | – |
| Core net income per share diluted, three months ended September 30, 2026non-GAAP | $ 0.79 | – | – |
| Net interest income, three months ended September 30, 2026GAAP | $22.49M | – | – |
| Provision for credit losses, three months ended September 30, 2026GAAP | 348 | – | – |
| Net interest income after provision for credit losses, three months ended September 30, 2026GAAP | $22.14M | – | $1.9 million, or 9.5% |
| Noninterest income, three months ended September 30, 2026GAAP | $2.70M | – | $0.1 million, or 2.8% |
| Noninterest expense, three months ended September 30, 2026GAAP | $11.00M | – | $0.4 million, or 4.3% |
| Income before income taxes, three months ended September 30, 2026GAAP | $13.84M | – | $1.5 million, or 12.5% |
| Provision for income taxes, three months ended September 30, 2026GAAP | $2.97M | – | – |
| Total operating revenue, nine months ended September 30, 2026other | $72.42M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $30.62M | – | – |
| Core net income, nine months ended September 30, 2026non-GAAP | $31.09M | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $ 2.23 | – | – |
| Core net income per share diluted, nine months ended September 30, 2026non-GAAP | $ 2.27 | – | – |
| Return on average assets, three months ended September 30, 2026GAAP | 1.84% | – | – |
| Return on average equity, three months ended September 30, 2026GAAP | 14.16% | – | – |
| Return on average tangible common equity, three months ended September 30, 2026non-GAAP | 14.68% | – | – |
| Net interest margin, three months ended September 30, 2026other | 4.14% | an increase of 8 basis points | – |
| Net interest rate spread, three months ended September 30, 2026other | 3.50% | – | – |
| Cost of total funding, three months ended September 30, 2026other | 1.77% | – | – |
| Efficiency ratio, three months ended September 30, 2026other | 43.68% | – | – |
| Core efficiency ratio, three months ended September 30, 2026non-GAAP | 43.68% | – | – |
| Total assets, as of September 30, 2026GAAP | $2.44B | – | – |
| Loans outstanding net of deferred fees and discounts, as of September 30, 2026GAAP | $1.98B | $42.8 million during the quarter, or 2.2% | $216.1 million, or 12.2% |
| Total deposits, as of September 30, 2026GAAP | $1.89B | – | $106.8 million, or 6.0% |
| Noninterest-bearing demand deposits, as of September 30, 2026GAAP | $408.2M | – | $9.6 million, or 2.4% |
| Core deposits, as of September 30, 2026non-GAAP | $1.73B | – | – |
| Other borrowings, as of September 30, 2026GAAP | $211.3M | – | – |
| Total shareholders' equity, as of September 30, 2026GAAP | $311.3M | – | – |
| Book value per share, as of September 30, 2026GAAP | $ 22.71 | increased $0.62, or 2.8% | – |
| Tangible book value per share, as of September 30, 2026non-GAAP | $ 21.92 | increased $0.64, or 3.0% | – |
| Total risk-based capital ratio, as of September 30, 2026other | 15.61% | – | – |
| Common equity tier 1 ratio, as of September 30, 2026other | 14.69% | – | – |
| Tangible common equity to tangible assets, as of September 30, 2026non-GAAP | 12.36% | – | – |
| Net charge-offs to average loans, three months ended September 30, 2026other | 0.00% | – | – |
| Nonperforming assets to total assets, as of September 30, 2026other | 0.31% | – | – |
| Allowance for credit losses to total loans, as of September 30, 2026other | 0.96% | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
What drove it
- Net income before income taxes increased primarily due to a $1.9 million, or 9.5%, increase in net interest income after provision for credit losses and a $0.1 million, or 2.8%, increase in noninterest income, partially offset by a $0.4 million, or 4.3%, increase in noninterest expense.
- Noninterest income increased primarily due to increases in ATM fees and bank-owned life insurance income.
- The increase in non-brokered deposits was primarily driven by normal customer business cycles and deposit growth.
- Commercial real estate loans were $ 1,182,947 as of September 30, 2026, representing 59% of total loans.
Concerns
- Nonperforming assets to total assets were 0.31% as of September 30, 2026, compared with 0.27% as of September 30, 2025.
- Nonperforming loans were $ 6,686 and other real estate owned was $ 888 as of September 30, 2026.
- Special mention loans were $ 17,695 as of September 30, 2026, compared with $ 3,352 as of September 30, 2025.
- The allowance for credit losses to total loans was 0.96% as of September 30, 2026, compared with 1.02% as of September 30, 2025.
- The loan-to-deposit ratio was 104.07% as of September 30, 2026, compared with 98.24% as of September 30, 2025.
What to watch
- Loan growth, including the $ 1,182,947 commercial real estate loan portfolio and the $ 197,644 construction and land development loan portfolio.
- Deposit growth and funding, including total deposits of $ 1,887,395, core deposits of $ 1,731,907 and other borrowings of $ 211,325.
- Credit migration, including special mention loans of $ 17,695, substandard loans of $ 7,050 and nonperforming assets of $ 7,574.
- Net interest margin, which was 4.14% in the third quarter of 2026 compared with 4.06% in the second quarter of 2026.
Balance sheet and cash flow
- Cash and due from banks were $ 174,916 as of September 30, 2026, compared with $ 122,945 as of September 30, 2025 and $ 161,327 as of June 30, 2026.
- Total deposits were $ 1,887,395 and other borrowings were $ 211,325 as of September 30, 2026.
- Total shareholders' equity was $ 311,307 as of September 30, 2026.
- The Bank exceeded the minimum requirements to be well-capitalized for bank regulatory purposes as of September 30, 2026.
Analysis
Commercial Bancgroup produced higher third-quarter earnings, with GAAP net income of $ 10,868 and diluted earnings per share of $ 0.79, compared with $ 9,467 and $ 0.77 in the third quarter of 2025. Net income also rose from $ 10,216 in the second quarter of 2026. Core net income equaled GAAP net income in the quarter, as the reconciliation reported no non-recurring expense for the period.
The principal earnings driver was net interest income. Net interest income was $ 22,487, versus $ 20,222 in the prior-year quarter and $ 21,515 in the preceding quarter. Net interest margin was 4.14%, an increase of 8 basis points from the second quarter of 2026. Noninterest income was $ 2,699, with the company attributing its increase to ATM fees and bank-owned life insurance income. Noninterest expense was $ 11,001, and the core efficiency ratio improved to 43.68% from 46.18% in the third quarter of 2025.
Balance-sheet expansion continued. Loans outstanding net of deferred fees and discounts reached $ 1,983,326, up $216.1 million, or 12.2%, from September 30, 2025 and up $42.8 million during the quarter, or 2.2%. Total deposits reached $ 1,887,395, an increase of $106.8 million, or 6.0%, from the prior-year period, while other borrowings were $ 211,325. Book value per share was $ 22.71 and tangible book value per share was $ 21.92, each higher than at June 30, 2026.
Credit results were mixed. Net charge-offs to average loans were 0.00%, and the allowance for credit losses was $ 19,029. However, nonperforming assets to total assets were 0.31%, compared with 0.27% a year earlier, while special mention loans were $ 17,695 compared with $ 3,352 at September 30, 2025. The allowance for credit losses to total loans was 0.96%, below 1.02% a year earlier. The company reported no forward guidance or capital-return activity in the filing.
Not in the filing
stated, not guessed- Forward guidance was not provided.
- Previous-period outlook was not provided.
- Share repurchases were not reported.
- Dividends were not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Gross margin was not reported.
- Operating income was not reported.
- Reportable operating segments were not provided.
- Tax rate was not reported.
- Management quotes were not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is a standard SEC Form 8‑K reporting quarterly results for Commercial Bancgroup, a Nasdaq‑listed regional bank holding company.
Ticker impact
Commercial Bancgroup reported Q3 2026 net income of $10.9M, up from $9.5M a year earlier, in its first 8‑K earnings release.
slight upside as market prices in earnings growth
The company posted higher net income and improved book value, but growth rates are modest and no guidance change was given.
Market effects
Banking sector may see slight positive bias from a regional bank's earnings beat.
Southeast U.S. regional banks could benefit from comparable performance.
Limited to U.S. regional banking niche.
Counterpoint
Despite earnings growth, the modest scale and lack of guidance may limit upside.
Key entities
- companyCommercial Bancgroup, Inc.
Nasdaq‑listed regional bank holding company reporting Q3 2026 results.
