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CW Bancorp

CW Bancorp Reports Fourth Quarter 2025 and Full Year Financial Results

IRVINE, Calif. , Jan. 29, 2026 /PRNewswire/ -- CW Bancorp (OTCQX: CWBK), the parent company ("the Company") of CommerceWest Bank (the "Bank") reported consolidated net income for the fourth quarter of 2025 of $3,450,000 or $1.17 per diluted share as compared to $3,940,000 or $1.30 per diluted share for the fourth quarter of 2024, an EPS decrease of 10%.  The consolidated net income for the twelve months ended December 31, 2025 was $12,246,000 or $4.09 per diluted share as compared to $13,148,000 or $4.30 per diluted share for the twelve months ended December 31, 2024, an EPS decrease of 5%.

Key Financial Results for the three months ended December 31, 2025:

  • EPS of $1.17
  • Net income of $3.5 million
  • Return on Assets of 1.19%
  • Return on Tangible Equity of 15.04%
  • ACL to total loans ratio of 1.32%
  • No outstanding FRB or FHLB borrowings
  • Strong Leverage ratio of 12.50% and total risk-based capital ratio of 18.86%
  • 64 quarters of consecutive profits

Key Financial Results for the twelve months ended December 31, 2025:

  • EPS of $4.09
  • Net income of $12.2 million
  • Return on Assets of 1.09%
  • Return on Tangible Equity of 14.07%
  • Total interest income up 2%
  • Total interest expense down 5%
  • Net interest income up 5%

Mr. Ivo A. Tjan, Chairman, President and CEO said, "We delivered solid results for the quarter highlighted by a return on assets of 1.19% and a return on tangible equity of 15.04%."  Mr. Tjan continued, "Our strong capital and liquidity position, combined with disciplined expense management and improving net interest income, position us well as we enter 2026. We believe the fundamentals of our franchise are strong, and we expect 2026 to be a year of solid growth and improved profitability. As always, I am grateful for the dedication of our talented CommerceWest Bank Team and their continued focus on serving our clients every day."  

Total assets decreased $8.9 million as of December 31, 2025, a decrease of 1% as compared to the same period one year ago. Total loans increased $2.5 million as of December 31, 2025, an increase of less than one percent from the prior year. Cash and due from banks increased $1.3 million from the prior year, an increase of less than one percent. Total investment securities decreased $9.7 million, a decrease of 6% from the prior year.

Total deposits decreased $18.4 million as of December 31, 2025, a decrease of 1% from December 31, 2024. Non-interest-bearing deposits decreased $19.8 million as of December 31, 2025, a decrease of 3% from the prior year. Interest bearing deposits increased $1.4 million as of December 31, 2025, an increase of less than one percent from the prior year.

Interest income was $13,879,000 for the three months ended December 31, 2025, as compared to $14,750,000 for the three months ended December 31, 2024, a decrease of 6%. Interest expense was $3,080,000 for the three months ended December 31, 2025, as compared to $3,714,000 for the three months ended December 31, 2024, a decrease of 17%.

Interest income was $55,274,000 for the twelve months ended December 31, 2025, as compared to $54,190,000 for the twelve months ended December 31, 2024, an increase of 2%. Interest expense was $13,512,000 for the twelve months ended December 31, 2025, as compared to $14,241,000 for the twelve months ended December 31, 2024, a decrease of 5%.

Net interest income for the three months ended December 31, 2025, was $10,799,000 as compared to $11,036,000 for the three months ended December 31, 2024, a decrease of 2%. The net interest margin decreased for the three months ended December 31, 2025. It decreased to 3.85% in 2025 from 3.86% in 2024. Net interest income for the twelve months ended December 31, 2025, was $41,762,000 as compared to $39,949,000 for the twelve months ended December 31, 2024, an increase of 5%. The net interest margin increased for the twelve months ended December 31, 2025. It increased to 3.86% in 2025 from 3.81% in 2024, an increase of 1%.

Provision for credit losses for the three months ended December 31, 2025, was zero compared to $25,000 for credit losses for the three months ended December 31, 2024. Provision for credit losses for the twelve months ended December 31, 2025, was $200,000 compared to $25,000 for the twelve months ended December 31, 2024.

Non-interest income for the three months ended December 31, 2025, was $1,198,000 compared to $2,011,000 for the same period last year, a decrease of 40%. Non-interest income for the twelve months ended December 31, 2025, was $4,954,000 compared to $6,166,000 for the same period last year, a decrease of 20%.

Non-interest expense for the three months ended December 31, 2025, was $7,145,000 compared to $7,617,000 for the same period last year, a decrease of 6%. Non-interest expense for the twelve months ended December 31, 2025, was $29,441,000 compared to $27,798,000 for the same period last year, an increase of 6%.

The efficiency ratio for the three months ended December 31, 2025, was 59.27% compared to 58.12% in 2024, which represents an increase of 2%. The efficiency ratio illustrates that for every dollar made for the three-month period ending December 31, 2025, it cost $0.5927 to make it, as compared to $0.5812 one year ago. The efficiency ratio for the twelve months ended December 31, 2025, was 60.64% compared to 59.97% in 2024, 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 December 31, 2025, the tier 1 leverage ratio was 12.50%, the common equity tier 1 capital ratio was 17.61%, the tier 1 risk-based capital ratio was 17.61% and the total risk-based capital ratio was 18.86%.

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, 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.

 

FOURTH QUARTER REPORT - December 31, 2025 (Unaudited)














CW BANCORP






%

CONSOLIDATED BALANCE SHEET




Increase

(dollars in thousands)


Dec 31, 2025


Dec 31, 2024


(Decrease)








ASSETS







Cash and due from banks


$                  504,627


$                  503,368


0 %

Securities available for sale


129,313


136,912


-6 %

Securities held-to-maturity


26,475


28,581


-7 %








Loans


795,550


793,075


0 %

  Less allowance for credit losses (ACL)


(10,489)


(11,489)


-9 %

Loans, net


785,061


781,586


0 %








Bank premises and equipment, net


2,731


3,543


-23 %

Other assets


33,227


36,362


-9 %

     Total assets


$               1,481,434


$               1,490,352


-1 %








LIABILITIES AND STOCKHOLDERS' EQUITY







Non-interest bearing deposits


$                  594,086


$                  613,877


-3 %

Interest bearing deposits


729,934


728,544


0 %

     Total deposits


1,324,020


1,342,421


-1 %








Subordinated debenture


50,000


50,000


0 %

Other liabilities


12,490


13,345


-6 %



1,386,510


1,405,766


-1 %

Stockholders' equity


94,924


84,586


12 %

     Total liabilities and stockholders' equity


$               1,481,434


$               1,490,352


-1 %








Shares outstanding at end of period


2,925,102


2,990,223



Book value per share


$                      34.87


$                     31.69



Total loans to total deposits


60.09 %


59.08 %



ACL to total loans


1.32 %


1.45 %



Nonperforming assets (non-accrual loans & OREO)


$                      8,246


$                     6,381










COMMERCEWEST BANK CAPITAL RATIOS:







Tier 1 leverage ratio


12.50 %


11.16 %



Common equity tier 1 capital ratio


17.61 %


16.67 %



Tier 1 risk-based capital ratio


17.61 %


16.67 %



Total risk-based capital ratio


18.86 %


17.92 %



 

CW BANCORP













CONSOLIDATED STATEMENT OF INCOME (Unaudited)


Three Months Ended


Increase


For the Twelve Months Ended


Increase

(dollars in thousands except share and per share data)


Dec 31, 2025


Dec 31, 2024


(Decrease)


Dec 31, 2025


Dec 31, 2024


(Decrease)














INTEREST INCOME













  Loans


$          10,930


$          10,856


1 %


$          44,596


$          40,690


10 %

  Investments


1,244


1,315


-5 %


5,158


4,799


7 %

  Fed funds sold and other


1,705


2,579


-34 %


5,520


8,701


-37 %

       Total interest income


13,879


14,750


-6 %


55,274


54,190


2 %














INTEREST EXPENSE













  Deposits


2,611


3,245


-20 %


11,637


12,366


-6 %

  Subordinated debenture


469


469


0 %


1,875


1,875


0 %

       Total interest expense


3,080


3,714


-17 %


13,512


14,241


-5 %














NET INTEREST INCOME BEFORE CREDIT LOSS PROVISION


10,799


11,036


-2 %


41,762


39,949


5 %














PROVISION FOR CREDIT LOSSES


-


25


-100 %


200


25


700 %














NET INTEREST INCOME AFTER CREDIT LOSS PROVISION


10,799


11,011


-2 %


41,562


39,924


4 %














NON-INTEREST INCOME













Service Charges and Fees on Deposits


933


1,698


-45 %


3,920


4,932


-21 %

Other Fees


265


313


-15 %


1,034


1,234


-16 %














NON-INTEREST EXPENSE


7,145


7,617


-6 %


29,441


27,798


6 %














EARNINGS BEFORE INCOME TAXES


4,852


5,405


-10 %


17,075


18,292


-7 %














INCOME TAXES


1,402


1,465


-4 %


4,829


5,144


-6 %



























NET INCOME


$            3,450


$            3,940


-12 %


$          12,246


$          13,148


-7 %














Basic earnings per share


$1.18


$1.32


-10 %


$4.14


$4.34


-5 %

Diluted earnings per share


$1.17


$1.30


-10 %


$4.09


$4.30


-5 %

Return on Assets


1.19 %


1.31 %


-9 %


1.09 %


1.19 %


-8 %

Return on Equity


14.56 %


18.27 %


-20 %


13.59 %


16.06 %


-15 %

Return on Tangible Equity


15.04 %


18.95 %


-21 %


14.07 %


16.69 %


-16 %

Efficiency Ratio


59.27 %


58.12 %


2 %


60.64 %


59.97 %


1 %

 

CW BANCORP












CONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS






















Three Months Ended December 31,


2025


2024


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

$       158,578


$        1,565


3.92 %


$       203,392


$        2,439


4.77 %

Investment Securities (1)

158,350


1,301


3.26 %


167,544


1,373


3.26 %

Loans

795,285


10,930


5.45 %


766,581


10,856


5.63 %

FHLB & Other Stocks

7,100


140


7.82 %


7,100


140


7.84 %

Total interest-earning assets

1,119,313


13,936


4.94 %


1,144,617


14,808


5.15 %













Noninterest-earning assets

29,564






54,295





Total assets

$     1,148,877






$     1,198,912





























INTEREST EARNING LIABILITIES












Interest Bearing Deposits

$       418,106


$        2,611


2.48 %


$       452,811


$        3,245


2.85 %

Subordinated Debenture

50,000


469


3.75 %


50,000


469


3.75 %

Total interest-earning liabilities

468,106


3,080


2.61 %


502,811


3,714


2.94 %













Noninterest-earning liabilities












Demand Deposits

574,112






595,705





Other Liabilities

12,608






14,620





Shareholders' Equity

94,051






85,776





Total liabilities and shareholder's equity     

$     1,148,877






$     1,198,912

















Net Interest Spread



$      10,856


2.33 %




$      11,094


2.21 %

Net Interest Margin





3.85 %






3.86 %













Total Deposits

$       992,218


$        2,611


1.04 %


$     1,048,516


$        3,245


1.23 %

Total Funding Costs

$     1,042,218


$        3,080


1.17 %


$     1,098,516


$        3,714


1.35 %













(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






















Twelve Months Ended December 31,


2025


2024


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

$       116,565


$        4,964


4.26 %


$       155,785


$        8,136


5.22 %

Investment Securities (1)

160,577


5,392


3.36 %


160,619


5,037


3.14 %

Loans

802,712


44,596


5.56 %


732,500


40,690


5.55 %

FHLB & Other Stocks

7,100


556


7.83 %


7,100


565


7.96 %

Total interest-earning assets

1,086,954


55,508


5.11 %


1,056,004


54,428


5.15 %













Noninterest-earning assets

39,704






52,899





Total assets

$     1,126,658






$     1,108,903





























INTEREST EARNING LIABILITIES












Interest Bearing Deposits

$       415,536


$      11,637


2.80 %


$       398,704


$      12,366


3.10 %

Subordinated Debenture

50,000


1,875


3.75 %


50,000


1,875


3.75 %

Total interest-earning liabilities

465,536


13,512


2.90 %


448,704


14,241


3.17 %













Noninterest-earning liabilities












Demand Deposits

558,350






564,223





Other Liabilities

12,667






14,130





Shareholders' Equity

90,105






81,846





Total liabilities and shareholder's equity

$     1,126,658






$     1,108,903

















Net Interest Spread



$      41,996


2.21 %




$      40,187


1.98 %

Net Interest Margin





3.86 %






3.81 %













Total Deposits

$       973,886


$      11,637


1.19 %


$       962,927


$      12,366


1.28 %

Total Funding Costs

$     1,023,886


$      13,512


1.32 %


$     1,012,927


$      14,241


1.41 %













(1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate





 

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SOURCE CW Bancorp