Key Highlights

• Commercial Bancgroup's $0.12 quarterly dividend, a 20% increase from Q2, trades ex-date September 15, 2026, payable September 30, yielding approximately 1.18%.

• Second-quarter Net Income rose to $10.2 million, or $0.75 per common share, with net interest Margin expanding 18 basis points to 4.06%.

• Tangible Book Value per share increased 3.3% sequentially to $21.28, up from $18.22 a year earlier.

• Loans grew $48.4 million during the quarter with net charge-offs at 0.00% and nonperforming Assets at just 0.31% of total assets.

Commercial Bancgroup's (NASDAQ:CBK) $0.12 quarterly dividend, a 20% increase from the prior quarter, yields approximately 1.18%, a raise that arrived while the bank was still actively growing its Loan book and maintaining strong Capital ratios. The more consequential story is the combination this quarter demonstrates: 18 basis points of net interest margin expansion to 4.06% alongside zero net charge-offs and continued double-digit loan growth, evidence that this recently public bank is scaling profitably rather than trading growth for Credit risk.

Dividend Program and Shareholder Returns

Commercial Bancgroup declared a $0.12 per share quarterly Dividend for the third quarter of 2026, payable September 30 to shareholders of record September 15. The annualized payout is $0.48 per share. The July declaration represented a 20% increase from the $0.10 paid during the second quarter, a notable raise given the bank was still growing its loan book and maintaining strong capital ratios, including a 14.0% total risk-based capital ratio at quarter-end.

About the Company

Commercial Bancgroup is the bank Holding Company for Commercial Bank, a Tennessee-chartered community bank headquartered in Harrogate, Tennessee, operating offices across Tennessee, Kentucky and North Carolina with a relationship-focused community banking strategy.

Financial Performance Behind the Payout

Commercial Bancgroup reported second-quarter net income of $10.2 million, or $0.75 per common share, versus $8.9 million and $0.73 a year earlier. Return on average assets was 1.78%, return on average Equity was 13.73%, and net interest margin increased 18 basis points to 4.06%. Loans grew $48.4 million during the quarter, while total assets reached approximately $2.4 billion and deposits were approximately $1.9 billion, including $1.8 billion of non-brokered deposits. Asset quality remained solid, with net charge-offs to average loans of 0.00% and nonperforming assets at just 0.31% of total assets. Tangible book value per share increased to $21.28 from $20.60 at March 31, up 3.3% sequentially and up from $18.22 a year earlier.

Scaling Profitably Since the 2025 IPO

Commercial Bancgroup's ability to combine 18 basis points of margin expansion with continued loan growth and essentially zero credit losses is a genuinely strong combination for a bank still relatively early in its life as a public company following its 2025 IPO, suggesting the relationship-focused Tennessee, Kentucky and North Carolina Franchise is scaling without sacrificing Underwriting discipline. Core efficiency remaining around 45% while the bank absorbs growth-related Investment demonstrates Operating Leverage is being maintained even as the Balance Sheet expands. The dividend increase, arriving alongside this operational strength rather than as a standalone capital-return decision, reflects genuine confidence in sustained profitability rather than a reach to satisfy income-focused investors.

Outlook

Commercial Bancgroup's dividend is well supported by expanding margins, continued loan growth and pristine asset quality, with the 20% increase reflecting confidence following the company's 2025 IPO. Investors should watch continued net interest margin trends, loan growth sustainability across its three-state footprint, and whether the currently minimal credit losses persist as the loan portfolio continues expanding.