0001213900-26-033659
SEC filingCommercial Bancgroup, Inc. (CBK) reported strong FY 2025 results in its 10-K filing dated March 24, 2026, for the period ending December 31, 2025. Net income attributable to the company reached $37.2M, up from $31.4M in 2024, driven by net interest income of $80.4M (up from $77.6M) and total noninterest income of $9.9M. Total interest and dividend income was $121.6M, with interest expense at $41.2M, reflecting effective cost management amid higher rates. Provision for credit losses declined sharply to $463K from $1.8M, boosting net interest income after provision to $80.0M. Noninterest expense fell to $42.5M from $46.1M, primarily due to lower salaries and professional fees. Balance sheet grew modestly to $2.29B in total assets, with loans net at $1.86B and deposits at $1.82B; shareholders' equity rose to $285.3M, supported by $29.9M net IPO proceeds. Operating cash flow was robust at $37.1M, though cash decreased $33.9M due to investing and financing outflows. Basic and diluted EPS both hit $3, improved from $2.58/$2.54 prior year. The IPO funded debt repayment, enhancing liquidity. Forward, growth strategy emphasizes organic expansion, acquisitions, and technology investments in TN, KY, NC markets, with CRE concentration noted as a risk.
Commercial Bancgroup, Inc. delivered solid FY 2025 performance with net income attributable to the company at $37.2M, a YoY increase from $31.4M in 2024. Key drivers included net interest income growth to $80.4M (up from $77.6M), fueled by $121.6M total interest/dividend income offset by $41.2M interest expense. Provision for credit losses dropped to $463K from $1.8M, yielding $80.0M net interest after provision. Noninterest income held at $9.9M, while expenses declined to $42.5M from $46.1M. Total assets stood at $2.29B, with equity at $285.3M boosted by $29.9M IPO proceeds used partly for debt repayment. EPS improved to $3 basic/diluted from $2.58/$2.54.
Primary revenue from net interest income $80.4M, comprising loans $112.3M, securities/dividends/deposits $9.3M, less $41.2M expense (deposits $37.1M dominant). Noninterest income $9.9M included ATM fees $3.4M, customer service $2.8M, BOLI increase $1.3M. No formal segments disclosed; operations via subsidiary Commercial Bank in TN/KY/NC, with loan portfolio 89% real estate ($1.68B total real estate secured). Growth from organic and Alliance merger (July 2024), IPO-funded expansion.
Income before taxes $47.4M yielded 16% pre-tax margin on revenue base. Efficiency improved with noninterest expense down 8% YoY to $42.5M (salaries $22.8M, 54% of total). Provision decline enhanced profitability; return on equity implied strong from equity growth. CRE concentration (322% of risk-based capital) noted, but asset quality stable with allowance $18.1M.
Operating cash $37.1M near net income, supported by depreciation $2.1M, offset by working capital changes. Investing used $32.7M (net loans outflow $67.6M, securities activity). Financing used $38.3M (deposits down $122.9M, borrowings net inflow). Cash fell $33.9M to $144.3M. Balance sheet: assets $2.29B (loans 81%), deposits $1.82B (loan-to-deposit 103%), debt $166.9M, liquidity via $144.3M cash equivalents.
Strategy targets organic growth (loans +9%, deposits +6% 2020-2025), acquisitions, de novo in TN/KY/NC MSAs. Emphasizes core deposits (91.6%), CRE/relationship banking, tech upgrades (Jack Henry core). Risks: interest rates, CRE (322% capital), economic conditions, regulation. CRA 'satisfactory'; well-capitalized (Tier 1 12.5%). IPO strengthens capital for expansion.