Commercial Bancgroup (NasdaqCM:CBK) Q3 2025 Earnings Call October 28, 2025 10:00 AM ET Company ParticipantsBrett Rabatin - MD, Head of Equity ResearchAdam Robertson - Chairman of the BoardPhilip Metheny - CFOTerry Lee - President and CEOOperatorThank you for standing by. At this time, I would like to welcome everyone to the Commercial Bancgroup third quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answe ...

Commercial Bancgroup (NasdaqCM:CBK) Q3 2025 Earnings Call October 28, 2025 10:00 AM ET Company ParticipantsBrett Rabatin - MD, Head of Equity ResearchAdam Robertson - Chairman of the BoardPhilip Metheny - CFOTerry Lee - President and CEOOperatorThank you for standing by. At this time, I would like to welcome everyone to the Commercial Bancgroup third quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answe ...

Financial Data and Key Metrics Changes - Net income for the first nine months of 2025 was $27.1 million, a 4.9% increase year to date [4] - Return on assets (ROA) was 1.60%, reflecting a 1.9% increase [4] - Return on equity (ROE) was 15.5%, showing a slight decrease of 8.5% compared to 2024 [4] - Revenue reached $66.9 million, a 1.9% increase [4] - Expenses decreased to $31.9 million, an eight basis points reduction [4] - Earnings per share (EPS) was $2.22, a 6.2% increase [4] - Tangible book value per share was $19.05, a 14.5% increase [4] - Efficiency ratio remained strong at 47.6% [4] Business Line Data and Key Metrics Changes - Loan portfolio activity remained robust, with expectations for strong loan closing volume in Q4 2025 to offset payoffs [5] - Loan delinquencies were at historical goals of 0.5% [5] - Total debt ratio stood at 2.19% [5] Market Data and Key Metrics Changes - The company experienced moderate loan growth year over year, impacted by large payoffs from long-term borrowers [4][5] - The company anticipates a positive loan growth by year-end despite not meeting budget expectations [12] Company Strategy and Development Direction - The company is focused on navigating the public bank space to grow its franchise and provide long-term value to shareholders [5] - There is a positive outlook on M&A opportunities, with the company positioned as a potential buyer for banks in the $500 million to $750 million range [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and direction as it transitions into the public market [5] - The management highlighted the flexibility of the balance sheet to adapt to changing interest rates, maintaining a strong net interest margin [13][15] - The management noted a positive buzz in the M&A environment, with ongoing discussions and opportunities being explored [16] Other Important Information - The company successfully completed its IPO on September 30, 2025, marking its transition to a public company [3] Q&A Session Summary Question: Loan pipeline and growth expectations for Q4 - Management indicated a strong loan pipeline for Q4 and expected positive loan growth by year-end, despite not meeting budget [11][12] Question: Margin outlook and loan/deposit pricing - Management stated that the net interest margin was holding strong at $4.05 and expressed flexibility in managing the balance sheet to maintain earnings [13][15] Question: M&A climate and opportunities - Management conveyed a positive outlook on the M&A environment, indicating ongoing interest in potential acquisitions and strong relationships with other banks [16]

Financial Performance - Net income less non-controlling interest for Q3 2025 was $9.5 million, or $0.77 per diluted share, compared to $9.2 million, or $0.74 per diluted share in Q3 2024, representing a 3.3% increase in net income[2][8] - Total operating revenue for Q3 2025 was $22.9 million, up from $21.9 million in Q3 2024, indicating a year-over-year growth of 4.6%[8] - Net income for the third quarter of 2025 was $9,465,149, compared to $9,207,213 in the same period of 2024, representing a growth of 2.8%[34] - Year-to-date net income for 2025 reached $27,056,347, an increase of 4.9% from $25,799,468 in 2024[34] - Other comprehensive income for the third quarter of 2025 was $419,455, down from $671,022 in the third quarter of 2024[34] - Total comprehensive income for the third quarter of 2025 was $9,884,604, slightly up from $9,878,235 in the same quarter of 2024[34] Assets and Liabilities - Total assets as of September 30, 2025, were $2.2 billion, a decrease of $86.8 million, or 3.8%, from December 31, 2024[10] - Total assets decreased from $2,301,211,138 as of December 31, 2024, to $2,214,408,255 as of September 30, 2025, representing a decline of approximately 3.8%[26] - Total net loans decreased to $1.7 billion, down $39.5 million, or 2.2%, from December 31, 2024[11] - Total deposits were $1.8 billion, a decrease of $158.0 million, or 8.1%, from December 31, 2024, primarily due to a reduction in time deposits[13] - Total deposits decreased from $1,938,596,955 as of December 31, 2024, to $1,780,633,582 as of September 30, 2025, a reduction of about 8.2%[26] Income and Expenses - Non-interest income for the nine months ended September 30, 2025, was $7.3 million, a decrease of $0.6 million, or 7.4%, from the same period in 2024[18] - Noninterest income for the nine months ended September 30, 2025, was $7,291,642, down from $7,878,052 in the same period of 2024, indicating a decline of approximately 7.4%[28] - Total noninterest expense for the nine months ended September 30, 2025, was $31,858,649, slightly down from $32,144,646 in the prior year, a decrease of about 0.9%[28] Capital and Ratios - The total risk-based capital ratio was 15.2% as of September 30, 2025, indicating the company exceeded the minimum requirements to be well-capitalized[12] - Return on average assets for Q3 2025 was 1.69%, slightly up from 1.65% in Q3 2024[8] - Core return on average assets was 1.61% for the nine months ended September 30, 2025, slightly up from 1.58% in 2024[35] - Return on average tangible equity was 16.37% for the nine months ended September 30, 2025, down from 18.20% in 2024[35] - The tangible equity to tangible assets ratio improved to 10.59% for the nine months ended September 30, 2025, compared to 9.04% in 2024[35] Shareholder Value - The company completed its IPO on October 3, 2025, raising approximately $30.6 million in net proceeds[4] - The company reported a tangible book value per common share, which is a key non-GAAP financial measure, indicating a focus on shareholder value[24] - The company continues to evaluate and manage its business using non-GAAP financial measures to provide a clearer understanding of ongoing operations[23] - Dividends paid to shareholders remained consistent at approximately $2,002,079 for both the third quarter of 2025 and 2024[34] - Stock repurchases included 185 Class B shares at a cost of $980,800 in the third quarter of 2025[32] Growth Metrics - Net interest income increased to $20,221,599 for the three months ended September 30, 2025, compared to $19,055,697 for the same period in 2024, reflecting a growth of about 6.1%[28] - Pre-tax pre-provision net income for the nine months ended September 30, 2025, was $35,053,000, compared to $33,550,000 for the same period in 2024, reflecting a growth of 4.5%[35] - Core earnings per share increased to $2.24 for the nine months ended September 30, 2025, compared to $2.14 in the same period of 2024, representing a growth of 4.67%[35] - The efficiency ratio improved to 46.2% for Q3 2025, compared to 48.1% in Q3 2024[8] - Core efficiency ratio was reported at 47.15% for the nine months ended September 30, 2025, compared to 47.87% in 2024, indicating improved operational efficiency[36] Retained Earnings - Retained earnings increased from $212,310,977 as of December 31, 2024, to $237,366,245 as of September 30, 2025, representing a growth of approximately 11.8%[26] - The retained earnings increased to $237,365,245 by September 30, 2025, up from $206,700,519 a year earlier[32]

HARROGATE, TN / ACCESS Newswire / October 27, 2025 / Commercial Bancgroup, Inc. ("Commercial" or the "Company") (Nasdaq:CBK), the parent company of Commercial Bank (the "Bank"), today announced net income less non-controlling interest of $9.5 million, or $0.77 per diluted common share, for the third quarter of 2025, compared to net income less non-controlling interest of $9.2 million, or $0.74 per diluted common share, for the third quarter of 2024. On October 1, 2025, the Company priced its initial public ...

Group 1 - Commercial Bancgroup, Inc. plans to release its financial results for the third quarter of 2025 on October 27, 2025, after market close [1] - A conference call to discuss the third quarter results is scheduled for October 28, 2025, at 10:00 a.m. [1]

HARROGATE, TN / ACCESS Newswire / October 3, 2025 / Commercial Bancgroup, Inc. ("Commercial"), a Tennessee corporation and the bank holding company for Commercial Bank, a Tennessee state-chartered commercial bank, announced today the closing of its initial public offering of 7,173,092 shares of its common stock, 1,458,334 of which were sold by Commercial and 5,714,758 of which were sold by certain selling shareholders, at a public offering price of $24.00 per share. Commercial received net proceeds, after d ...

Core Insights - The U.S. IPO market is experiencing a modest scale with more companies entering, highlighted by a recent IPO and several SPACs debuting [1] - Megan Holdings, a Malaysian aquaculture service provider, priced its IPO at the lower end of its range, raising $5 million with a market cap of $65 million [1][2] - The week saw significant fundraising from SPACs, with Drugs Made In America Acquisition II raising $500 million, and other SPACs led by notable figures like Chamath Palihapitiya and Tom Lee also securing substantial amounts [1][2] IPO Activity - Megan Holdings (MGN) raised $5 million with a market cap of $55 million, showing a first-day return of +21% [2] - American Acquisition A (AEXA) raised $300 million, with a first-day return of +6% [2] - FutureCrest Acquisition (FRCS.U) raised $250 million, achieving a first-day return of +4% [2] - Emmis Acquisition (EMISU) raised $100 million, with no first-day return [2] - Drugs Made In America Acquisition II (DMIIU) raised $500 million, with a first-day return of +10% [2] Upcoming IPOs - Fermi (FRMI), a newly established REIT, plans to raise $500 million with a market cap of $13 billion, focusing on a large-scale data center project [5] - Neptune Insurance (NP) aims to raise $350 million with a market cap of $2.8 billion, providing data-driven insurance products [5] - Commercial Bancgroup (CBK) plans to raise $100 million with a market cap of $367 million [6] - HW Electro (HWEP) is set to raise $17 million with a market cap of $16.9 million [6] Initial Filings - Six IPOs submitted initial applications, including HCI Group Exzeo (XZO) seeking $100 million and Ethos Technologies (LIFE) also targeting $100 million [2][4] - Other companies filing include YCS Group Holdings (YCSG.RC) for $14 million, PressLogic (PLAI) for $12 million, Seahawk Recycling Holdings for $10 million, and CSC Collective Holdings for $7 million [2][4] SPAC Filings - Three SPACs filed initial applications, including Lafayette Digital Acquisition I seeking $250 million, Climate Transition Special Opportunities SPAC I aiming for $150 million, and Creative Future Acquisition targeting $60 million [3][4]

总部网点遍及肯塔基州、北卡罗来纳州及田纳西州的社区银行集团Commercial Bancgroup(CBK.US)于周 一公布了其首次公开发行(IPO)的具体条款。 这家总部位于田纳西州哈罗盖特市的公司计划通过发行370万股股票(其中75%为二次发售股份)筹集1亿 美元资金，发行价区间定为每股25.75美元至27.75美元。若按该区间中点价格计算，Commercial Bancgroup的市值将达到3.67亿美元。 通过旗下子公司Commercial Bank，该公司以全方位服务型社区银行模式运营，目前在肯塔基州、北卡 罗来纳州和田纳西州共设有34家营业网点及1家贷款业务办公室。其核心服务区域包括田纳西州的纳什 维尔、诺克斯维尔、三城大都会统计区及部分其他郡县，肯塔基州东南部部分社区，以及北卡罗来纳州 的夏洛特大都市统计区。截至2025年6月30日，商业银行合并总资产达23亿美元，贷款余额(扣除信贷损 失准备金后)为18亿美元，存款规模19亿美元，股东权益总额2.35亿美元。 Commercial Bancgroup成立于1975年，在截至2025年6月30日的过去12个月内实现营收8900万美元。该 公司计 ...

The bank holding company for Tennessee-based Commercial Bank launched its initial public offering.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.Commercial Bancgroup and some of its shareholders plan to offer a to ...