# Commercial Bancgroup, Inc. (CBK) Informational only - not investment advice. CIK: 0001981546 SIC: 6022 State Commercial Banks SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Depository Institutions](/major-group/60/) > [SIC 6022 State Commercial Banks](/industry/6022/) Latest 10-K filed: 2026-03-24 SEC page: https://www.sec.gov/edgar/browse/?CIK=1981546 Filing source: https://www.sec.gov/Archives/edgar/data/1981546/000121390026033659/ea0282863-10k_commercial.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-03-24 · accession 0001213900-26-033659 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001981546.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 121,604,088 USD | 2025 | verified | | Net income | 37,196,198 USD | 2025 | verified | | Assets | 2,291,454,981 USD | 2025 | verified | | Free cash flow | 35,229,381 USD | 2025 | computed | | Net margin | 30.59% | 2025 | computed | | Revenue YoY | -1.31% | 2025 | computed | | ROE | 13.04% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | CBK | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 30.6% | 21.9% | 86 | 149 | | Revenue growth | -1.3% | 6.0% | 16 | 148 | | FCF margin | 29.0% | 23.8% | 72 | 133 | | ROE | 13.0% | 9.6% | 85 | 149 | | ROA | 1.6% | 1.1% | 90 | 149 | | Liabilities / equity | 7.03 | 8.04 | 28 | 149 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6022 State Commercial Banks, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 121604088 | USD | 2025 | 2026-03-24 | | Net income | 37196198 | USD | 2025 | 2026-03-24 | | Assets | 2291454981 | USD | 2025 | 2026-03-24 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-24. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001981546.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2024 | 2025 | | --- | ---: | ---: | | Revenue | 123,212,968 | 121,604,088 | | Net income | 31,409,926 | 37,196,198 | | Diluted EPS | 2.54 | 2.95 | | Operating cash flow | 38,675,935 | 37,094,507 | | Capital expenditures | 3,041,086 | 1,865,126 | | Dividends paid | 2,002,669 | 2,002,079 | | Share buybacks | 1,829,803 | 980,800 | | Assets | 2,301,211,138 | 2,291,454,981 | | Liabilities | 2,080,955,355 | 2,006,111,149 | | Stockholders' equity | 220,255,783 | 285,343,832 | | Cash and cash equivalents | 178,197,916 | 144,318,929 | | Free cash flow | 35,634,849 | 35,229,381 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2024 | 2025 | | --- | ---: | ---: | | Net margin | 25.49% | 30.59% | | Return on equity | 14.26% | 13.04% | | Return on assets | 1.36% | 1.62% | | Liabilities / equity | 9.45 | 7.03 | ## As-reported value updates No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks. ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-12. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001981546.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2025-Q3 | 2025-09-30 | 30,020,936 | 9,466,149 | 0.77 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 29,958,564 | 10,138,851 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 29,463,199 | 9,534,438 | 0.70 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 30,154,202 | 10,215,666 | 0.74 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from CBK's latest 10-K: [/company/CBK/business/](/company/CBK/business/). ## Risk Factors Verbatim Item 1A Risk Factors from CBK's latest 10-K: [/company/CBK/risk-factors/](/company/CBK/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1981546/000121390026088408/ea0301441-10q_commercial.htm Extracted from a later financial-section MD&A body after Item 2 boundaries were low-confidence. Confidence: high Filing date: 2026-08-12 Report date: 2026-06-30 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited consolidated financial statements and related notes included elsewhere in this Report and our audited consolidated financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the 2025 Annual Report. In addition to historical information, this discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from our expectations. Factors that could cause or contribute to such differences include those discussed below and elsewhere in this Report, particularly in the section titled “Cautionary Note Regarding Forward-Looking Statements,” as well as in the section titled “Risk Factors” in the 2025 Annual Report. We assume no obligation to update any of these forward-looking statements except to the extent required by law. Overview The Parent Company is a bank holding company headquartered in Harrogate, Tennessee that has elected under the BHC Act to become a financial holding company. The Parent Company was incorporated in Tennessee in 1975 and operates primarily through its wholly owned subsidiary, the Bank, a Tennessee-chartered banking corporation organized in 1976. We provide banking services from 34 offices in select markets in Kentucky, North Carolina, and Tennessee, and we also operate one loan production office in Lincolnton, North Carolina. The Bank is a full-service community banking institution that offers traditional consumer and commercial products and services to serve businesses and individuals in our markets. Our management’s discussion and analysis of financial condition and results of operations is intended to provide the reader with information that will assist in the understanding of our business, results of operations, financial condition and financial statements; changes in certain key items in our financial statements from period to period; and the primary factors that we use to evaluate our business. Critical Accounting Policies and Estimates Our consolidated financial statements are prepared in accordance with GAAP and follow general practices within the banking industry. The application of these principles requires management to make estimates, assumptions and complex judgements that affect amounts presented in our consolidated financial statements. These estimates, assumptions and judgements are based on information available as of the date of the financial statements; accordingly, as this information changes, the consolidated financial statements could reflect different estimates, assumptions, and judgements. Management has identified the ACL, as a critical accounting policy included in Note 1 of our consolidated financial statements as of and for the fiscal year ended December 31, 2025, and included in the 2025 Annual Report, to be an accounting area that requires the most complex and subjective judgements and, as such, could be most subject to revision as new and additional information becomes available or circumstances change, including changes in the economic climate and interest rate changes. Critical accounting policies we have identified, along with the disclosures presented in the notes to our consolidated financial statements and in this discussion and analysis, provide information on how significant assets and liabilities are valued in the financial statements and how those values are determined. There have been no significant changes to the accounting policies, estimates, and assumptions, or the judgments affecting the application of these policies, estimates, and assumptions, from those disclosed in the 2025 Annual Report. 39 Emerging Growth Company Pursuant to the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), as an emerging growth company, the Parent Company can elect to opt out of the extended transition period for adopting any new or revised accounting standards. The Parent Company has elected to take advantage of the extended transition period, which means that when a standard is issued or revised and it has different application dates for public and private companies, the Parent Company may adopt the standard on the application date for private companies. The Parent Company has elected to take advantage of the scaled disclosures and other relief under the JOBS Act, and the Parent Company may take advantage of some or all of the reduced regulatory and reporting requirements that will be available to us under the JOBS Act, so long as it qualifies as an emerging growth company. Three and Six Months ended June 30, 2026 Highlights Results of Operations [[GREPCENT_TABLE]] [["","\u25cf","We had net income of $10.2 million for the three months ended June 30, 2026, compared to $8.9 million for the three months ended June 30, 2025, an increase of $1.3 million, or 14.8%. Net income for the six months ended June 30, 2026, was $19.8 million, compared to $17.6 million for the six months ended June 30, 2025, an increase of $2.2 million, or 12.3%. In each case, the increase was primarily the result of a decrease in interest expense due to a reduction of long-term debt and brokered deposits."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","We had net income before income taxes of $12.9 million for the three months ended June 30, 2026, compared to $11.6 million for the three months ended June 30, 2025, an increase of $1.3 million, or 11.6%. Net income before income taxes for the six months ended June 30, 2026, was $24.8 million, compared to $22.8 million for the six months ended June 30, 2025, an increase of $2.0 million, or 8.8%. In each case, the increase was primarily the result of an increase in net interest income after provision for credit losses. Noninterest expense was relatively flat and, while noninterest income increased for both periods, the amount of the increase was not significant to net income."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","Net interest income was $21.5 million for the three months ended June 30, 2026, compared to $20.1 million for the three months ended June 30, 2025, an increase of $1.4 million, or 7.3%. Net interest income was $42.0 million for the six months ended June 30, 2026, compared to $39.4 million for the six months ended June 30, 2025, an increase of $2.6 million, or 6.6%. In each case, the increase was primarily the result of a decrease in interest expense due to a reduction of long-term debt and brokered deposits ."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","Noninterest income was $2.7 million for the three months ended June 30, 2026, compared to $2.2 million for the three months ended June 30, 2025, an increase of $0.4 million, or 19.2%. Noninterest income was $5.2 million for the six months ended June 30, 2026, compared to $4.7 million for the six months ended June 30, 2025, an increase of $0.5 million, or 12.3%. In each case, the increase was primarily the result of an increase in customer service fees and automated teller machine (\u201cATM\u201d) transaction fees."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","Noninterest expense was $10.9 million for the three months ended June 30, 2026, compared to $10.7 million for the three months ended June 30, 2025 an increase of $0.2 million, or 1.4%. The increase was primarily the result of an increase in professional fees. Noninterest expense was $22.0 million for the six months ended June 30, 2026, compared to $21.3 million for the six months ended June 30, 2025, an increase of $0.7 million, or 3.1%. The increase was primarily the result of a loss on retirement of debt."]] [[/GREPCENT_TABLE]] 40 Financial Condition [[GREPCENT_TABLE]] [["","\u25cf","Total assets were $2.4 billion as of June 30, 2026, an increase of $85.1 million, or 3.7%, from December 31, 2025."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","Net loans were $1.9 billion as of June 30, 2026, an increase of $66.4 million, or 3.6%, from December 31, 2025. This increase was substantially the result of organic loan growth in the Nashville-Davidson \u2014 Murfreesboro \u2014 Franklin, Tennessee metropolitan statistical area (the \u201cNashville MSA\u201d), the Knoxville, Tennessee metropolitan statistical area (the \u201cKnoxville MSA\u201d), and the Charlotte-Concord-Gastonia, North Carolina-South Carolina metropolitan statistical area (the \u201cCharlotte MSA\u201d)."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","Total deposits were $1.9 billion as of June 30, 2026, an increase of $57.4 million, or 3.2%, from December 31, 2025. This increase was primarily driven by a $29.6 million increase in time deposits to $516.6 million at June 30, 2026, from $487.0 million at December 31, 2025. Noninterest bearing demand deposits increased $30.5 million, or 7.7%, to $428.4 million as of June 30, 2026, from $397.8 million as of December 31, 2025. Brokered deposits increased $7.4 million, or 15.4%, to $55.4 million as of June 30, 2026 from $48.0 million as of December 31, 2025."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","Non-brokered deposits were $1.8 billion as of June 30, 2026, an increase of $50.0 million, or 2.8%, from December 31, 2025. This increase was primarily driven by normal customer activity."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","Asset quality remained stable with nonperforming assets to total assets of 0.31% as of June 30, 2026, compared to 0.28% as of December 31, 2025. The ACL to total loans was 0.96% as of June 30, 2026, compared to 0.97% as of December 31, 2025."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","Book value per share increased $1.26, or 6.0%, to $22.09 at June 30, 2026, from $20.83 at December 31, 2025."]] [[/GREPCENT_TABLE]] Primary Factors Used to Evaluate Our Business and Results of Operations The most significant factors we use to evaluate our business and results of operations are net income, return on average assets (“ROAA”) and return on average equity (“ROAE”). We also use net interest income, noninterest income, noninterest expense and efficiency ratio. Net Income Our net income depends substantially on net interest income, which is the difference between interest earned on interest-earning assets (usually interest-bearing cash, investment securities and loans) and the interest expense incurred in connection with interest-bearing liabilities (usually interest-bearing deposits and borrowings). Our net income also depends on noninterest income, which is income generated other than by our interest-earning assets. Other factors that influence our net income include our provisions for credit losses, income taxes, and noninterest expenses, which include our fixed and variable overhead costs and other miscellaneous operating expenses. Return on Average Assets We monitor ROAA to measure our operating performance and to determine how efficiently our assets are being used to generate net income. In determining ROAA for a given period, net income is divided by the average total assets for that period. Return on Average Equity We use ROAE to assess our effectiveness in utilizing shareholders’ equity to generate net income. In determining ROAE for a given period, net income is divided by the average shareholders’ equity for that period. 41 Net Interest Income Net interest income is our principal source of net income and represents the difference between interest income and interest expense. We generate interest income from interest-earning assets that we own, including loans and investment securities. We incur interest expense from interest-bearing liabilities, including interest-bearing deposits an [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1981546/000121390026033659/ea0282863-10k_commercial.htm Complete FY 2025 MD&A: /company/CBK/mda/fy2025/ Extracted from Item 7 to the first post-MD&A boundary after HTML sanitization. Confidence: high Filing date: 2026-03-24 Report date: 2025-12-31 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the related notes appearing elsewhere in this Report. This discussion and analysis contains forward-looking statements that are subject to certain risks and uncertainties and are based on certain assumptions that we believe are reasonable but may not be realized. Certain risks, uncertainties and other factors, including those set forth under “Risk Factors,” under “Cautionary Note Regarding Forward-Looking Statements” and elsewhere in this Report, may cause actual results to differ materially from those projected results discussed in the forward-looking statements appearing in this discussion and analysis. We assume no obligation to update any of these forward-looking statements. Certain monetary amounts, percentages and other figures included in this discussion and analysis may have been subject to rounding adjustments. Accordingly, figures shown in totals in certain tables or charts may not be the arithmetic aggregation of the figures that precede them, and figures expressed as percentages in the text may not total 100% or, as applicable, when aggregated may not be the arithmetic aggregation of the percentages that precede them. Overview The Company is a bank holding company with principal executive offices located in Harrogate, Tennessee that has elected under the BHC Act to become a financial holding company. We were incorporated in Tennessee in 1975, and we operate primarily through our wholly owned subsidiary, the Bank, a Tennessee banking corporation organized in 1976. We provide banking services from 34 offices in select markets in Kentucky, North Carolina, and Tennessee, and we also operate one LPO in Lincolnton, North Carolina. The Bank is a full-service community banking institution that offers traditional consumer and commercial products and services to serve businesses and individuals in our markets. 51 We have pursued a strategy of disciplined organic and acquisition-fueled growth. Since 2008, we have successfully completed five whole-bank acquisitions. Most recently, in June 2023, we acquired a majority (76.83%) ownership interest in AB&T Financial Corporation (“AB&T”), the parent company of Alliance, for total consideration of $23.8 million, which included cash, debt forgiveness, and shares of Class C Common Stock. An approximately 57.17% ownership interest in AB&T was acquired in exchange for a combination of cash and debt forgiveness, with the AB&T shares being valued for this purpose at two times the tangible book value per share of AB&T’s common stock as of May 31, 2023. We acquired the remaining portion of the majority ownership interest in AB&T, or an approximately 19.66% ownership interest, in exchange for shares of Class C Common Stock, with the shares of Class C Common Stock being issued pursuant to exemptions from registration under the federal securities laws. This exchange of shares was completed using the tangible book value per share of the Company’s common stock and Class B Common Stock ($3,551.38 per share), on the one hand, and AB&T’s common stock ($0.56 per share), on the other hand, as of April 30, 2023, with shares of AB&T common stock converting to shares of Class C Common Stock on a book-for-book basis at a ratio of 0.000158 shares of Class C Common Stock for each share of AB&T common stock. We acquired the remaining minority (23.17%) ownership interest in AB&T on June 30, 2024, for aggregate cash consideration of $5,678,150, or $0.74 per share of AB&T common stock. This per share price was supported by a valuation of the AB&T common stock as of June 30, 2023, commissioned by a committee of the board of directors of AB&T comprised solely of independent directors. On July 1, 2024, Alliance merged with and into the Bank. Our acquisition of Alliance added four branches and one LPO to our network and expanded our reach into North Carolina, including the Charlotte MSA. Our management’s discussion and analysis of financial condition and results of operations is intended to provide the reader with information that will assist in the understanding of our business, results of operations, financial condition and financial statements; changes in certain key items in our financial statements from period to period; and the primary factors that we use to evaluate our business. Fiscal Year ended December 31, 2025 Highlights Highlights of our financial condition and results of operations as of and for the fiscal year ended December 31, 2025, and other key events that occurred during the fiscal year 2025 are provided below. Financial Condition [[GREPCENT_TABLE]] [["","\u25cf","Total assets were $2.3 billion as of December 31, 2025, a slight decrease of $9.6 million, or 0.4%, from December 31, 2024."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","Net loans were $1.9 billion as of December 31, 2025, an increase of $66.6 million, or 3.7%, from December 31, 2024."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","As of December 31, 2025, the Bank exceeded the minimum requirements to be well-capitalized for bank regulatory purposes, with a total risk-based capital ratio of 13.5%, a Tier 1 risk-based capital ratio of 12.5%, a common equity Tier 1 capital ratio of 12.5%, and a Tier 1 leverage ratio of 10.8%."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","Total deposits were $1.8 billion as of December 31, 2025, a decrease of $122.9 million, or 6.3%, from December 31, 2024. This decrease was primarily driven by a $126.9 million reduction in brokered deposits to $48.0 million at December 31, 2025, from $174.9 million at December 31, 2024. Noninterest bearing demand deposits increased $1.2 million, or 0.3%, to $397.8 million as of December 31, 2025, from $396.6 million as of December 31, 2024."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","Asset quality decreased slightly with nonperforming assets to total assets of 0.28% as of December 31, 2025, compared to 0.26% as of December 31, 2024. The allowance for credit losses to total loans decreased slightly to 0.97% as of December 31, 2025 from 1.01% as of December 31, 2024."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","Book value per share increased $2.65, or 14.6%, to $20.83 at December 31, 2025, from $18.18 at December 31, 2024. Tangible book value per share increased $2.87, or 16.8%, to $19.98 at December 31, 2025, from $17.11 at December 31, 2024. Tangible book value per share is a non-GAAP financial measure. Please see \u201cNon-GAAP Financial Measures\u201d for a definition of tangible book value per share and a reconciliation of tangible book value per share to its most directly comparable GAAP financial measure."]] [[/GREPCENT_TABLE]] 52 Results of Operations [[GREPCENT_TABLE]] [["","\u25cf","We had net income less non-controlling interest of $37.2 million for the fiscal year ended December 31, 2025, an increase of $5.8 million, or 18.4%, from the fiscal year ended December 31, 2024. The increase was primarily the result of an increase in net interest income after provision for credit losses and reduction in noninterest expenses."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","Net interest income was $80.4 million for the fiscal year ended December 31, 2025, an increase of $2.8 million, or 3.7%, from the fiscal year ended December 31, 2024. The increase was primarily attributable to a reduction in deposit and long-term debt interest expense."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","Noninterest income was $9.9 million for the fiscal year ended December 31, 2025, a decrease of $0.9 million, or 8.7%, from the fiscal year ended December 31, 2024. The decrease was primarily the result of a decrease in gains on sales of premises and equipment and decreases in customer service charges due to normal fluctuations in our letters of credit fees."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","Noninterest expense was $42.5 million for the fiscal year ended December 31, 2025, a decrease of $3.6 million, or 7.8%, from the fiscal year ended December 31, 2024. The decrease was primarily the result of efficiencies realized from the acquisition of AB&T."]] [[/GREPCENT_TABLE]] Primary Factors Used to Evaluate Our Business Results of Operations The most significant factors we use to evaluate our business and results of operations are net income, return on average assets (“ROAA”) and return on average equity (“ROAE”). We also use net interest income, noninterest income, noninterest expense and efficiency ratio. Net Income Our net income depends substantially on net interest income, which is the difference between interest earned on interest-earning assets (usually interest-bearing cash, investment securities and loans) and the interest expense incurred in connection with interest-bearing liabilities (usually interest-bearing deposits and borrowings). Our net income also depends on noninterest income, which is income generated other than by our interest-earning assets. Other factors that influence our net income include our provisions for credit losses, income taxes, and noninterest expenses, which include our fixed and variable overhead costs and other miscellaneous operating expenses. Return on Average Assets We monitor ROAA to measure our operating performance and to determine how efficiently our assets are being used to generate net income. In determining ROAA for a given period, net income is divided by the average total assets for that period. 53 Return on Average Equity We use ROAE to assess our effectiveness in utilizing shareholders’ equity to generate net income. In determining ROAE for a given period, net income is divided by the average shareholders’ equity for that period. Net Interest Income Net interest income is our principal source of net income and represents the difference between interest income and interest expense. We generate interest income from interest-earning assets that we own, including loans and investment securities. We incur interest expense from interest-bearing liabilities, including interest-bearing deposits and other borrowings, notably FHLB advances, the CTB Loan and the Subordinated Debentures (as defined below). To evaluate net interest income, we measure and monitor: (i) yields on our loans and other interest-earning assets; (ii) the cost of our deposits and other funding sources; (iii) our net interest spread; and (iv) our net interest margin. Net interest spread is the difference between rates earned on interest-earning assets and rates paid on interest-bearing liabilities. Net interest margin is a ratio of net interest income to average interest earning assets for the same period. Changes in market interest rates and interest rates we earn on interest-earning assets or pay on interest-bearing liabilities, as well as the volume and types of interest-earning assets, interest-bearing liabilities and noninterest-bearing liabilities, are usually the largest drivers of periodic changes in net interest spread, net interest margin and net interest income. Noninterest Income Noninterest income primarily consists of: (i) service charges on deposit accounts; (ii) net realized gains on the sale of premises and equipment; (iii) net realized gains on the sale of foreclosed assets; (iv) automated teller machine (“ATM”) and debit card fees; (v) benefits from changes in the cash surrender value of BOLI; and (vi) other miscellaneous fees and income. Our income from service charges on deposit accounts, which includes nonsufficient funds fees, is impacted by several factors, including number of accounts, products utilized and account holder cash management behaviors. These are further impacted by deposit products utilized by custom [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/CBK/mda/fy2025/ All MD&A years: /company/CBK/mda/ ## Macro cross-references Indicators mapped to this company's SIC classification (industry 6022 State Commercial Banks) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/CBK.md · JSON record: /company/CBK.json · verified financials: /company/CBK/financials.json / /company/CBK/financials.csv · machine TOC for the whole site: /llms.txt