Commercial Bancgroup(US:CBK)2025-11-14 21:31Financial Performance - Net income attributable to Commercial Bancgroup, Inc. for the nine months ended September 30, 2025, was $27.06 million, a 4.9% increase compared to $25.80 million for the same period in 2024[19]. - Net income for the nine months ended September 30, 2025, was $27,057,347, compared to $26,075,325 for the same period in 2024, reflecting a year-over-year increase of approximately 3.8%[21]. - Net income for the three months ended September 30, 2025, was $9.5 million, an increase of $0.3 million, or 2.8%, compared to the same period in 2024[164]. - Net income for the nine months ended September 30, 2025, was $27.1 million, an increase of $1.3 million, or 4.9%, compared to the same period in 2024[165]. - Net income before income taxes for the three months ended September 30, 2025, was $12.3 million, an increase of $1.3 million, or 11.6%, from the same period in 2024[172]. Assets and Liabilities - Total assets decreased to $2.21 billion as of September 30, 2025, down from $2.30 billion at the end of 2024, representing a decline of approximately 3.9%[17]. - Total liabilities decreased to $1.97 billion as of September 30, 2025, down from $2.08 billion at the end of 2024, a reduction of approximately 5.4%[17]. - Cash and cash equivalents decreased to $154.79 million as of September 30, 2025, down from $178.20 million at the end of 2024, a decline of 13.1%[17]. - Total deposits decreased to $1.78 billion as of September 30, 2025, down 8.1% from $1.94 billion at the end of 2024[17]. - The total carrying amount of purchased credit deteriorated loans was $12,336,553 as of September 30, 2025, down from $14,404,221 on December 31, 2024[93]. Income and Expenses - Net interest income for the three months ended September 30, 2025, increased to $20.22 million, up 6.1% from $19.06 million in the same period of 2024[18]. - Noninterest income for the three months ended September 30, 2025, was $2.63 million, a decrease of 6.5% from $2.81 million in the same period of 2024[18]. - Noninterest income for the nine months ended September 30, 2025, was $7.3 million, a decrease of $0.6 million, or 7.6%, from $7.9 million in the same period of 2024[199]. - Noninterest expense for the three months ended September 30, 2025, was $10.6 million, an increase of $0.03 million, or 0.3%, from $10.5 million in the same period of 2024[205]. - Salaries and employee benefits for the three months ended September 30, 2025, were $5.7 million, an increase of $0.1 million, or 2.2%, compared to $5.6 million for the same period in 2024[207]. Credit Quality - The provision for credit losses was zero for the three months ended September 30, 2025, compared to $323,000 in the same period of 2024[18]. - The company reported a provision for credit losses of $1,823,644 in 2024, which was not applicable in 2025, indicating improved credit quality[21]. - The total provision for credit losses for the nine months ended September 30, 2025, was $427,000, with total charge-offs of $690,000[75]. - The allowance for credit losses (ACL) as a percentage of total loans was 1.01% at September 30, 2025, compared to 1.00% at December 31, 2024[197]. - The company reported no loans classified in the Loss category as of September 30, 2025, indicating strong credit quality management[87]. Shareholder Equity - Total shareholders' equity as of September 30, 2025, was $245,153,326, up from $214,783,919 as of September 30, 2024, indicating a growth of about 14.1%[20]. - Shareholders' equity increased to $239.5 million as of September 30, 2025, up from $207.4 million in the previous year[186]. - Book value per share increased by $0.81, or 4.2%, to $20.03 at September 30, 2025, from $19.22 at June 30, 2025[165]. Loans and Lending Activities - The total loans as of September 30, 2025, were $1,773,574,037, a decrease from $1,815,681,891 on December 31, 2024[63]. - The commercial real estate loan segment had a balance of $1,002,191,761 as of September 30, 2025, compared to $1,006,206,845 on December 31, 2024[63]. - The residential real estate loans amounted to $376,768,740 as of September 30, 2025, up from $369,308,057 on December 31, 2024[63]. - The average yield on gross loans was 6.4% for the three months ended September 30, 2025, compared to 6.6% for the same period in 2024[186]. - The company has categorized loans into various risk categories, with a focus on maintaining a low likelihood of loss for "Pass" loans[78]. Capital Adequacy - The Bank's total capital to risk-weighted assets ratio was 15.2% as of September 30, 2025, exceeding the minimum requirement of 10.0%[116]. - The Bank's Tier I capital to risk-weighted assets ratio was 14.2% as of September 30, 2025, above the minimum requirement of 8.0%[116]. - The Company met all capital adequacy requirements as of September 30, 2025, and was categorized as well capitalized by the FDIC[114]. Market and Economic Conditions - The company monitors net income growth monthly, quarterly, and annually, comparing it to prior periods and budget[182]. - Management expresses confidence in current underwriting standards to meet potential changes in economic conditions, reflecting a proactive approach to risk management[139]. - 90% of the Company's loan portfolio is concentrated in loans secured by real estate as of September 30, 2025, indicating a significant reliance on local real estate market conditions[138].