Menu Search

Company Announcements

CW Bancorp

CW Bancorp Reports First Quarter 2026 EPS of $1.18, up 22%

IRVINE, Calif. , April 30, 2026 /PRNewswire/ -- CW Bancorp (OTCQX: CWBK), the parent company ("the Company") of CommerceWest Bank (the "Bank") reported consolidated net income for the first quarter of 2026 of $3,496,000 or $1.18 per diluted share as compared to $2,935,000 or $0.97 per diluted share for the first quarter of 2025.

Key Financial Results for the three months ended March 31, 2026:

  • EPS of $1.18 up 22%
  • Net Income of $3.5 million up 19%
  • Return on Assets of 1.18% up 10%
  • Return on Tangible Equity of 15.05% up 6%
  • ACL to total loans ratio of 1.36%
  • Efficiency Ratio of 58.39% down 8%
  • Total Deposits of $1.1 billion up 8%
  • Total Assets of $1.246 billion up 8%
  • No outstanding FRB or FHLB borrowings
  • Non-interest-bearing deposits to total deposits of 56%
  • Leverage ratio of 11.89% and total risk-based capital ratio of 19.23%
  • 65 quarters of consecutive profits

Mr. Ivo A. Tjan, Chairman and CEO commented, "We delivered a strong start to 2026, with earnings per share increasing 22% and net income growing 19%, driven by solid deposit growth, disciplined expense management, and improved operating efficiency."  Mr. Tjan continued, "In an environment of ongoing macroeconomic uncertainty, our fortress balance sheet, strong capital ratios, and ample liquidity position us to manage risk while continuing to generate consistent, high-quality earnings. With 65 consecutive quarters of profitability, we remain focused on delivering sustainable returns and long-term value for our shareholders, while continuing to invest strategically in our platform to support future growth."

Total assets increased $94.2 million as of March 31, 2026, an increase of 8% as compared to the same period one year ago.  Total loans decreased $26.2 million as of March 31, 2026, a decrease of 3% from the prior year.  Cash and due from banks increased $96.9 million or 61% from the prior year. Total investment securities increased $27.2 million, an increase of 17% from prior year.

Total deposits increased $84.6 million as of March 31, 2026, an increase of 8% from March 31, 2025. Non-interest-bearing deposits increased $20.7 million as of March 31, 2026, an increase of 4% from the prior year. Interest bearing deposits increased $63.9 million as of March 31, 2026, an increase of 15% from the prior year.

Interest income was $14.0 million for the three months ended March 31, 2026, as compared to $13.4 million for the three months ended March 31, 2025, an increase of 4%. Interest expense was $3.2 million for the three months ended March 31, 2026, as compared to $3.4 million for the three months ended March 31, 2025, a decrease of 6%.

Net interest income for the three months ended March 31, 2026, was $10.8 million compared to $10.0 million for the three months ended March 31, 2025, an increase of 8%. The net interest margin decreased for the three months ended March 31, 2026. It decreased from 3.87% in 2025 to 3.75% in 2026, a decrease of 3%.

Provision for credit losses was $50,000 for the three months ended March 31, 2026, as compared to zero for the same period last year.

Non-interest income for the three months ended March 31, 2026, was $970,000 compared to $1.2 million for the same period last year, a decrease of 22%. 

Non-interest expense for the three months ended March 31, 2026, was $6.9 million compared to $7.2 million for the same period last year, a decrease of 4%.

The efficiency ratio for the three months ended March 31, 2026, was 58.39% compared to 63.22% in 2025, which represents a decrease of 8%.  The efficiency ratio illustrates that for every dollar made for the three-month period ending March 31, 2026, it costs $0.5839 to make it, as compared to $0.6322 one year ago. 

Capital ratio for the Bank remain above the level required for a "well capitalized" institution as designated by regulatory agencies. As of March 31, 2026, the tier 1 leverage ratio was 11.89%, the common equity tier 1 capital ratio was 17.98%, the tier 1 risk-based capital ratio was 17.98% and the total risk-based capital ratio was 19.23%.

On April 10, 2026, the Company provided notice to holders of its $32,500,000 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 $15,000,000 of such notes on May 15, 2026. Following such redemption, $17,500,000 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.

 

CW BANCORP






%


CONSOLIDATED BALANCE SHEET




Increase


(dollars in thousands)


March 31, 2026


March 31, 2025


(Decrease)










ASSETS








Cash and due from banks


$                 256,910


$                 159,966


61 %


Securities available for sale


162,959


135,157


21 %


Securities held to maturity


25,952


26,556


-2 %










Loans


776,031


802,181


-3 %


  Less allowance for credit losses (ACL)


(10,543)


(11,355)


-7 %


Loans, net


765,488


790,826


-3 %










Bank premises and equipment, net


2,496


3,324


-25 %


Other assets


31,992


35,778


-11 %


     Total assets


$               1,245,797


$              1,151,607


8 %










LIABILITIES AND STOCKHOLDERS' EQUITY








Non-interest bearing deposits


$                 607,893


$                 587,167


4 %


Interest bearing deposits


478,797


414,900


15 %


     Total deposits


1,086,690


1,002,067


8 %










Subordinated debenture


50,000


50,000


0 %


Other liabilities


12,540


12,141


3 %




1,149,230


1,064,208


8 %


Stockholders' equity


96,567


87,399


10 %


     Total liabilities and stockholders' equity


$               1,245,797


$              1,151,607


8 %










Shares outstanding at end of period


2,930,202


2,983,223




Book value per share


$                     35.68


$                    32.46




Total loans to total deposits


71.41 %


80.05 %




ACL to total loans


1.36 %


1.42 %




Nonperforming assets (non-accrual loans & OREO)


$                   10,286


$                    7,251












COMMERCEWEST BANK CAPITAL RATIOS:








Tier 1 leverage ratio


11.89 %


12.35 %




Common equity tier 1 capital ratio


17.98 %


16.76 %




Tier 1 risk-based capital ratio


17.98 %


16.76 %




Total risk-based capital ratio


19.23 %


18.01 %












 

CW BANCORP







CONSOLIDATED STATEMENT OF INCOME (Unaudited)


Three Months Ended


Increase

(dollars in thousands except share and per share data)


March 31, 2026


March 31, 2025


(Decrease)








INTEREST INCOME







  Loans


$                        10,420


$                       10,981


-5 %

  Investment securities


1,346


1,338


1 %

  Fed funds sold and other


2,227


1,118


99 %

       Total interest income


13,993


13,437


4 %








INTEREST EXPENSE







  Deposits


2,724


2,924


-7 %

  Subordinated debenture


469


469


0 %

       Total interest expense


3,193


3,393


-6 %








NET INTEREST INCOME BEFORE CREDIT LOSS PROVISION


10,800


10,044


8 %








PROVISION FOR CREDIT LOSSES


50


-


100 %








NET INTEREST INCOME AFTER CREDIT LOSS PROVISION


10,750


10,044


7 %








NON-INTEREST INCOME







Service Charges and Fees on Deposits


699


1,029


-32 %

Other Fees


271


216


25 %








NON-INTEREST EXPENSE


6,907


7,175


-4 %








EARNINGS BEFORE INCOME TAXES


4,813


4,114


17 %








INCOME TAXES


1,317


1,179


12 %















NET INCOME


$                          3,496


$                         2,935


19 %








Basic earnings per share


$                            1.19


$                           0.98


21 %

Diluted earnings per share


$                            1.18


$                           0.97


22 %

Return on Assets


1.18 %


1.07 %


10 %

Return on Equity


14.58 %


13.66 %


7 %

Return on Tangible Equity


15.05 %


14.16 %


6 %

Efficiency Ratio


58.39 %


63.22 %


-8 %

 

CW BANCORP












CONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS





















Three Months Ended March 31,


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

$       212,573


$        1,937


3.70 %


$         89,519


$          981


4.44 %

Investment Securities (1)

169,914


1,404


3.35 %


165,486


1,396


3.42 %

Loans

784,657


10,420


5.39 %


796,856


10,981


5.59 %

FHLB & Other Stocks

7,100


290


16.56 %


7,100


138


7.88 %

Total interest-earning assets

1,174,244


14,051


4.85 %


1,058,961


13,496


5.17 %













Noninterest-earning assets

30,619






50,612





Total assets

$    1,204,863






$    1,109,573





























INTEREST EARNING LIABILITIES












Interest Bearing Deposits

$       457,948


$        2,724


2.41 %


409,640


2,924


2.89 %

Subordinated Debenture

50,000


469


3.75 %


50,000


469


3.75 %

Total interest-earning liabilities

507,948


3,193


2.55 %


459,640


3,393


2.99 %













Noninterest-earning liabilities












Demand Deposits

585,119






549,970





Other Liabilities

14,537






12,828





Shareholders' Equity

97,259






87,135





Total liabilities and shareholder's equity

$    1,204,863






$    1,109,573

















Net Interest Spread



$      10,858


2.30 %




$      10,103


2.18 %

Net Interest Margin





3.75 %






3.87 %













Total Deposits

$    1,043,067


$        2,724


1.06 %


$       959,610


$        2,924


1.24 %

Total Funding Costs

$    1,093,067


$        3,193


1.18 %


$    1,009,610


$        3,393


1.36 %













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

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/cw-bancorp-reports-first-quarter-2026-eps-of-1-18--up-22-302755785.html

SOURCE CW Bancorp