CW Bancorp Reports Third Quarter 2026 Financial Results

CW Bancorp (OTCQX: CWBK ), the parent company ("the Company") of CommerceWest Bank (the "Bank") reported consolidated net income for the third quarter of 2026 of $3,287,000 or $1.11 per diluted share as compared to $2,778,000 or $0.93 per diluted share for the third quarter of 2025, an EPS increase of 19%, and net income for the nine months ended September 30, 2026 of $9,916,000 or $3.35 per diluted share as compared to $8,795,000 or $2.93 per diluted share for the nine months ended September 30, 2025, an EPS increase of 14%. Key Financial Results for the three months ended September 30, 2026: EPS of $1.11, an increase of 19% Return on Assets of 1.17%, an increase of 21% Return on Tangible Equity of 13.60%, an increase of 8% Net Income growth of 18% ACL to total loans ratio of 1.34% No outstanding FRB or FHLB borrowings Leverage ratio of 10.56% and total risk-based capital ratio of 16.02% 67 quarters of consecutive profits Key Financial Results for the nine months ended September 30, 2026: EPS of $3.35, an increase of 15% Return on Assets of 1.13%, an increase of 8% Return on Tangible Equity of 13.94% Net interest income growth of 6% Net income growth of 13% Mr. Ivo Tjan, Chairman, President and CEO, "Our third quarter results demonstrate the strength and resilience of CommerceWest Bank's unique business model and our continued commitment to disciplined financial management. We generated net income of $3.3 million, representing a 19% increase in earnings per share compared to the prior year, and achieved our 67th consecutive profitable quarter. Our strong earnings performance, prudent expense management, and disciplined approach to credit quality contributed to a return on assets of 1.17% and a return on tangible equity of 13.60%." Mr. Tjan added, "We see attractive opportunities to expand our commercial banking franchise and are strategically investing in our sales team to accelerate the acquisition of high-quality commercial loans and core deposits. Our strong capital position, liquidity, and well-positioned balance sheet provide a solid foundation to support future growth while maintaining our commitment to prudent risk management. As we look ahead, we remain focused on expanding client relationships, leveraging our digital-first banking model, and delivering sustainable long-term value to our shareholders." Total assets decreased $49.7 million as of September 30, 2026, a decrease of 4% as compared to the same period one year ago. Total loans decreased $40.7 million as of September 30, 2026, a decrease of 5% from the prior year. The Bank remains prudent and conservative about credit quality. Cash and due from banks decreased $44.5 million or 34% over the prior year. Total investment securities increased $33.1 million, an increase of 21% from the prior year. Total deposits decreased $34.2 million as of September 30, 2026, a decrease of 4% from September 30, 2025. Non-interest-bearing deposits increased $34.4 million as of September 30, 2026, an increase of 6% from the prior year. Interest bearing deposits decreased $68.7 million as of September 30, 2026, a decrease of 17% over the prior year. Interest income was $13,543,000 for the three months ended September 30, 2026, as compared to $14,287,000 for the three months ended September 30, 2025, a decrease of 5%. Interest expense was $2,681,000 for the three months ended September 30, 2026, as compared to $3,450,000 for the three months ended September 30, 2025, a decrease of 22%. Interest income was $41,450,000 for the nine months ended September 30, 2026, as compared to $41,396,000 for the nine months ended September 30, 2025, an increase of less than one percent. Interest expense was $8,725,000 for the nine months ended September 30, 2026, as compared to $10,432,000 for the nine months ended September 30, 2025, a decrease of 16%. Net interest income for the three months ended September 30, 2026, was $10,862,000 as compared to $10,837,000 for the three months ended September 30, 2025, an increase of less than one percent. The net interest margin was 3.97% for the three months ended September 30, 2026, as compared to 3.87% in 2025, an increase of 3%. Net interest income for the nine months ended September 30, 2026, was $32,725,000 as compared to $30,964,000 for the nine months ended September 30, 2025, an increase of 6%. The net interest margin increased for the nine months ended September 30, 2026. It increased from 3.82% in 2025 to 3.83% in 2026. The provision for credit losses for the three months ended September 30, 2026, was zero compared to $100,000 for the three months ended September 30, 2025. The provision for credit losses for the nine months ended September 30, 2026, reflected a reduction in reserves of $100,000, as compared to an increase in reserves of $200,000 for the nine months ended September 30, 2025. Non-interest income for the three months ended September 30, 2026, was $968,000 compared to $1,175,000 for the same period last year, a decrease of 18%. Non-interest income for the nine months ended September 30, 2026, was $2,953,000 compared to $3,755,000 for the same period last year, a decrease of 21%. Non-interest expense for the three months ended September 30, 2026, was $7,363,000, as compared to $8,134,000 for the same period last year, a decrease of 9%. Non-interest expense for the nine months ended September 30, 2026, was $22,117,000, as compared to $22,296,000 for the same period last year, a decrease of 1%. The efficiency ratio for the three months ended September 30, 2026, was 62.07% compared to 58.90% in 2025, which represents an increase of 5%. The efficiency ratio illustrates that for every dollar made for the three-month period ending September 30, 2026, it cost $0.6207 to make it, as compared to $0.5890 one year ago. The efficiency ratio for the nine months ended September 30, 2026, was 61.76% compared to 61.11% in 2025, which represents an increase of 1%. Capital ratios for the Bank remain above the levels required for a "well capitalized" institution as designated by regulatory agencies. As of September 30, 2026, the tier 1 leverage ratio was 10.56%, the common equity tier 1 capital ratio was 14.77%, the tier 1 risk-based capital ratio was 14.77% and the total risk-based capital ratio was 16.02%. On September 17, 2026, the Company provided notice to holders of its $17,500,000 in aggregate principal amount of 3.75% Fixed to Floating Rate Subordinated Notes, due April 1, 2031 (the "Notes"), of its intent to partially redeem $10,000,000 of such notes on October 19, 2026. Following such redemption, $7,500,000 of such Notes will remain outstanding. In addition, the Company also has outstanding $17,500,000 in aggregate principal amount of 3.75% Fixed to Floating Rate Subordinated Notes, due December 15, 2031. CommerceWest Bank is determined to redefine banking for small and medium sized businesses by delivering customized products and services to each client's needs. Founded in 2001 and headquartered in Irvine, California, the Bank serves businesses throughout the state of California with our robust digital banking platform. By employing a strategically selected team of experienced professionals, we will provide flexibility, and create a complete, safe and sound banking experience for each client. We provide a full suite of commercial banking services, including remote deposit solutions, NetBanker online banking , mobile banking , lines of credit , M&A and working capital financing, commercial real estate loans, SBA lending and treasury management services. Mission Statement: CommerceWest Bank will create a complete banking experience for each client, catering to businesses and their specific banking needs, while accommodating our clients and providing them high-quality, low stress and personally tailored banking and financial services. Please visit www.cwbk.com to learn more about the bank. "BANK ON THE DIFFERENCE" Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, loan production, balance sheet management, expanded net interest margin, the ability to control costs and expenses, interest rate changes, financial policies of the United States government and general economic conditions. The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any forward-looking statements contained in this release to reflect future events or developments. THIRD QUARTER REPORT - SEPTEMBER 30, 2026 (Unaudited) CW BANCORP % CONSOLIDATED BALANCE SHEET Increase (dollars in thousands) Sept 30, 2026 Sept 30, 2025 (Decrease) ASSETS Cash and due from banks $ 87,274 $ 131,818 -34 % Securities available for sale 173,618 131,552 32 % Securities held-to-maturity 17,499 26,501 -34 % Loans 768,100 808,797 -5 % Less allowance for credit losses (ACL) (10,327) (11,120) -7 % Loans, net 757,773 797,677 -5 % Bank premises and equipment, net 2,036 2,923 -30 % Other assets 37,810 35,234 7 % Total assets $ 1,076,010 $ 1,125,705 -4 % LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits $ 598,524 $ 564,081 6 % Interest bearing deposits 338,788 407,462 -17 % Total deposits 937,312 971,543 -4 % Subordinated debenture 34,591 50,000 -31 % Other liabilities 11,332 12,595 -10 % 983,235 1,034,138 -5 % Stockholders' equity 92,775 91,567 1 % Total liabilities and stockholders' equity $ 1,076,010 $ 1,125,705 -4 % Shares outstanding at end of period 2,928,302 2,933,670 Book value per share $ 37.43 $ 33.89 Total loans to total deposits 81.95 % 83.25 % ACL to total loans 1.34 % 1.37 % Nonperforming assets (non-accrual loans & OREO) $ 13,415 $ 8,560 COMMERCEWEST BANK CAPITAL RATIOS: Tier 1 leverage ratio 10.56 % 12.22 % Common equity tier 1 capital ratio 14.77 % 16.68 % Tier 1 risk-based capital ratio 14.77 % 16.68 % Total risk-based capital ratio 16.02 % 17.93 % CW BANCORP CONSOLIDATED STATEMENT OF INCOME (Unaudited) Three Months Ended Increase For the Nine Months Ended Increase (dollars in thousands except share and per share data) Sept 30, 2026 Sept 30, 2025 (Decrease) Sept 30, 2026 Sept 30, 2025 (Decrease) INTEREST INCOME Loans $ 10,607 $ 11,493 -8 % $ 31,483 $ 33,667 -6 % Investments 1,987 1,273 56 % 5,251 3,914 34 % Fed funds sold and other 949 1,521 -38 % 4,716 3,815 24 % Total interest income 13,543 14,287 -5 % 41,450 41,396 0 % INTEREST EXPENSE Deposits 2,213 2,981 -26 % 7,202 9,026 -20 % Subordinated debenture 468 469 0 % 1,523 1,406 8 % Total interest expense 2,681 3,450 -22 % 8,725 10,432 -16 % NET INTEREST INCOME BEFORE CREDIT LOSS PROVISION 10,862 10,837 0 % 32,725 30,964 6 % PROVISION FOR CREDIT LOSSES - 100 -100 % (100) 200 -150 % Non-interest income: NET INTEREST INCOME AFTER CREDIT LOSS PROVISION 10,862 10,737 1 % 32,825 30,764 7 % NON-INTEREST INCOME Service Charges and Fees on Deposits 652 932 -30 % 2,100 2,986 -30 % Other Fees 316 243 30 % 853 769 11 % NON-INTEREST EXPENSE 7,363 8,134 -9 % 22,117 22,296 -1 % EARNINGS BEFORE INCOME TAXES 4,467 3,778 18 % 13,661 12,223 12 % INCOME TAXES 1,180 1,000 18 % 3,745 3,428 9 % NET INCOME $ 3,287 $ 2,778 18 % $ 9,916 $ 8,795 13 % Basic earnings per share $ 1.12 $ 0.94 19 % $ 3.39 $ 2.96 15 % Diluted earnings per share $ 1.11 $ 0.93 19 % $ 3.35 $ 2.93 14 % Return on Assets 1.17 % 0.97 % 21 % 1.13 % 1.05 % 8 % Return on Equity 13.18 % 12.17 % 8 % 13.51 % 13.25 % 2 % Return on Tangible Equity 13.60 % 12.60 % 8 % 13.94 % 13.72 % 2 % Efficiency Ratio 62.07 % 58.90 % 5 % 61.76 % 61.11 % 1 % CW BANCORP CONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS Three Months Ended September 30, 2026 2025 Average Balance Interest Income / Expense Yield / Cost Average Balance Interest Income / Expense Yield / Cost (dollars in thousands) INTEREST EARNING ASSETS Int Bearing Due from Banks & FFS $ 84,532 $ 795 3.73 % $ 123,826 $ 1,381 4.42 % Investment Securities (1) 223,147 2,083 3.70 % 171,665 1,331 3.08 % Loans 779,058 10,607 5.40 % 815,141 11,493 5.59 % FHLB & Other Stocks 7,100 154 8.61 % 7,100 140 7.82 % Total interest-earning assets 1,093,837 13,639 4.95 % 1,117,732 14,345 5.09 % Noninterest-earning assets 18,907 22,937 Total assets $ 1,112,744 $ 1,140,669 INTEREST EARNING LIABILITIES Interest Bearing Deposits $ 350,940 $ 2,213 2.50 % $ 419,484 $ 2,981 2.82 % Subordinated Debenture 34,929 468 5.28 % 50,000 469 3.75 % Total interest-earning liabilities 385,869 2,681 2.76 % 469,484 3,450 2.92 % Noninterest-earning liabilities Demand Deposits 616,389 567,751 Other Liabilities 11,538 12,867 Shareholders' Equity 98,948 90,567 Total liabilities and shareholder's equity $ 1,112,744 $ 1,140,669 Net Interest Spread $ 10,958 2.19 % $ 10,895 2.17 % Net Interest Margin 3.97 % 3.87 % Total Deposits $ 967,329 $ 2,213 0.91 % $ 987,235 $ 2,981 1.20 % Total Funding Costs $ 1,002,258 $ 2,681 1.06 % $ 1,037,235 $ 3,450 1.32 % (1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate CW BANCORP CONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS Nine Months Ended September 30, 2026 2025 Average Balance Interest Income / Expense Yield / Cost Average Balance Interest Income / Expense Yield / Cost (dollars in thousands) INTEREST EARNING ASSETS Int Bearing Due from Banks & FFS $ 152,907 $ 4,236 3.70 % $ 102,407 $ 3,399 4.44 % Investment Securities (1) 209,410 5,495 3.51 % 175,013 4,090 3.12 % Loans 781,943 31,483 5.38 % 805,215 33,667 5.59 % FHLB & Other Stocks 7,100 480 9.04 % 7,100 416 7.83 % Total interest-earning assets 1,151,360 41,694 4.84 % 1,089,735 41,572 5.10 % Noninterest-earning assets 19,727 29,434 Total assets $ 1,171,087 $ 1,119,169 INTEREST EARNING LIABILITIES Interest Bearing Deposits $ 394,862 $ 7,202 2.44 % $ 414,671 $ 9,026 2.91 % Subordinated Debenture 42,284 1,523 4.77 % 50,000 1,406 3.75 % Total interest-earning liabilities 437,146 8,725 2.67 % 464,671 10,432 3.00 % Noninterest-earning liabilities Demand Deposits 622,562 553,038 Other Liabilities 13,231 12,685 Shareholders' Equity 98,148 88,775 Total liabilities and shareholder's equity $ 1,171,087 $ 1,119,169 Net Interest Spread $ 32,969 2.17 % $ 31,140 2.10 % Net Interest Margin 3.83 % 3.82 % Total Deposits $ 1,017,424 $ 7,202 0.95 % $ 967,709 $ 9,026 1.25 % Total Funding Costs $ 1,059,708 $ 8,725 1.10 % $ 1,017,709 $ 10,432 1.37 % (1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate SOURCE CW Bancorp