Commercial Bancgroup, Inc. reported net income of $10.9 million for the third quarter of 2026, a rise from $9.5 million in the same period last year. The Harrogate, Tennessee-based bank holding company, which trades on Nasdaq under the ticker CBK, attributed the increase primarily to higher net interest income and noninterest income. For the nine months ended September 30, 2026, the company generated $30.6 million in net income, compared to $27.1 million for the same period in 2025.
The results show a strengthening balance sheet as the bank continues to expand its loan book. Loans outstanding, net of deferred fees and discounts, increased by $42.8 million during the quarter to reach $2.0 billion as of September 30, 2026. This represents a 12.2% increase from the $1.8 billion reported a year earlier. Total assets grew to $2.4 billion from $2.2 billion over the same period, driven in part by a $106.8 million rise in total deposits.
Profitability metrics remained stable through the first three quarters of the year. Return on average assets stood at 1.76% for the nine months ended September 30, 2026, up from 1.61% in the prior year period. Return on average equity was 13.71% for the nine months ended September 30, 2026, down from 15.75% in the comparable 2025 period. The core efficiency ratio improved to 44.7% for the nine months ended September 30, 2026, from 47.1% a year ago.
Capital levels continue to exceed regulatory minimums for well-capitalized banks. As of September 30, 2026, Commercial Bank maintained a total risk-based capital ratio of 14.2%, a Tier 1 risk-based capital ratio of 13.3%, and a common equity Tier 1 capital ratio of 13.3%. The Tier 1 leverage ratio was 11.8%. Asset quality metrics showed a slight increase in nonperforming assets to total assets, rising to 0.31% from 0.27% a year earlier, while net charge-offs to average loans remained at 0.00% for the quarter.
The company’s financial statements reflect retroactive adjustments for a stock reclassification and a 250-for-1 forward stock split that took effect in September 2025, prior to its October 2025 initial public offering. Book value per share increased to $22.71 as of September 30, 2026, up from $20.03 at the end of the previous year.