Cashmere Valley Bank Reports Increased Quarterly Earnings of $6.9 million, Year to Date Earnings of $12.7 million
Rhea-AI Summary
Cashmere Valley Bank (OTCQX: CSHX) reported Q2 2026 net income of $6.9 million and diluted EPS of $1.88, up $0.34 or 22.1% from Q1 2026. Year-to-date diluted EPS was $3.42 versus $3.69 a year earlier. Quarterly return on assets was 1.21% and return on equity 10.8%.
As of June 30, 2026, gross loans reached $1.033 billion, up $61.7 million (6.3%) year over year and $81.5 million (8.6%) since December 31, 2025. Deposits totaled $1.963 billion, up $123.6 million (6.7%) year over year, with non-interest deposits at $420.0 million (21.4% of deposits). Net interest income for the first half rose to $34.1 million from $33.0 million, while the net interest margin was 3.10% versus 3.20% a year ago, improving to 3.15% in Q2 2026 from Q1.
The Bank repurchased 327,419 shares (8.38% of outstanding shares) in January and April 2026 for $24.6 million and declared a $1.00 per share cash dividend payable August 10, 2026 to shareholders of record July 31, 2026. Tier 1 capital was $289.4 million and GAAP equity-to-assets was 11.13%.
Positive
- Q2 2026 diluted EPS $1.88, up 22.1% from Q1 2026
- Gross loans up 8.6% year to date to $1.033 billion
- Deposits up 6.7% year over year to $1.963 billion
- Share repurchases of 327,419 shares (8.38% outstanding) for $24.6 million
- Net interest income for six months up to $34.1 million from $33.0 million
- Quarterly net interest margin improved 10 bps from Q1 2026 to 3.15%
Negative
- Year-to-date diluted EPS declined to $3.42 from $3.69 a year ago
- Net interest margin for six months fell to 3.10% from 3.20% in 2025
- Non-interest expense rose to $27.1 million from $25.4 million year to date
- Efficiency ratio worsened to 60.2% from 57.7% in the prior year period
- Provision for credit losses year to date increased to $2.152 million from $1.278 million
- Brokerage commission income at Cashmere Valley Wealth Management decreased by $314,000 year to date
News Market Reaction – CSHX
In the Jul 22 session, CSHX gained 0.90%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
CASHMERE, WA / ACCESS Newswire / July 22, 2026 / Cashmere Valley Bank (OTCQX:CSHX) ("Bank"), announced quarterly earnings of
"The second quarter reflected a strong rebound from the first quarter. Along with the improvement in earnings, we are very pleased with our balance sheet growth in 2026," said Greg Oakes, President and CEO. "Loan and deposit totals are both above our expectations entering the year. We are also thrilled to report that we broke ground on our upcoming East Wenatchee facility along Grant Road. We expect that facility to open in the middle part of 2027."
The Bank reported the following statement of condition highlights as of June 30, 2026:
As of June 30, 2026, gross loans totaled
$1.033 billion , which represented an increase from June 30, 2025 of$61.7 million , or6.3% . The Bank experienced loan growth in 2026 as loan balances increased$81.5 million , or8.6% , since December 31, 2025.Deposit balances totaled
$1.963 billion as of June 30, 2026. Deposit balances increased$123.6 million , or6.7% , from June 30, 2025. Deposit balances increased from December 31, 2025 by$62.0 million , or3.3% . Non-interest deposits totaled$420.0 million as of June 30, 2026, which represented21.4% of total deposits.Quarterly return on assets increased to
1.21% from1.04% , due to the increase in net income.Quarterly return on equity increased to
10.8% from9.0% , due to reduced net income along with a decreasing equity base, primarily from share repurchases.Common stock tender offers to repurchase shares of the Bank's common stock were completed in January 2026 and April 2026 totaling 327,419 shares, or
8.38% , of the common shares outstanding. Cash paid for the repurchases totaled$24.6 million .At the July 21, 2026 Board of Director's meeting, the Bank's Board of Directors declared a cash dividend of
$1.00 per share. The dividend will be payable on August 10, 2026 to shareholders of record July 31, 2026.
Cash, Cash Equivalents and Restricted Cash
Total cash, cash equivalents and restricted cash totaled
Investments
The investment portfolio, net of the held to maturity allowance, totaled
During the second quarter of 2026, a loss on sale of available for sale securities of
Loans and Credit Quality
Gross loans increased
The allowance for credit losses on loans (ACL) was
Non-performing loan totals decreased slightly from the prior quarter and represented
Deposits
Deposits totaled
Equity
Tier 1 capital remains strong. Tier 1 capital decreased to
As of June 30, 2026, GAAP capital increased
Earnings
Net Interest Income
For the six months ended, June 30, 2026, net interest income totaled
For the quarter ending June 30, 2026, net interest income increased
The net interest margin was
Non-Interest Income
Non-interest income totaled
Non-Interest Expense
Non-interest expense totaled
The Bank's efficiency ratio was
Income tax expense increased from
About Cashmere Valley Bank
Cashmere Valley Bank was established September 24, 1932 and now has 11 retail offices in Chelan, Douglas, Kittitas and Yakima Counties and a municipal lending office in King County. The Bank provides business and personal banking, commercial lending, insurance services through its subsidiary Mitchell, Reed & Schmitten Insurance, investment services, mortgage services, equipment lease financing, auto and marine dealer financing and municipal lending. The success of Cashmere Valley Bank is the result of maintaining a high level of personal service and controlling expenses so our fees and charges offer our customers the best value available. We remain committed to those principles that we feel are best summarized as, "the little Bank with the big circle of friends."
Forward-Looking Statements
This release may contain certain forward-looking statements that are based on management's current expectations regarding economic, legislative, and regulatory issues that may impact the Bank's earnings in future periods. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "intend," "anticipate," "estimate," "will," "would," "should," "could" or "may." Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, economic uncertainty in the United States and abroad, changes in interest rates, deposit flows, real estate values, costs or effects of acquisitions, competition, changes in accounting principles, policies or guidelines, legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors affecting the Bank's operations. The Bank undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
MEDIA CONTACT:
Greg Oakes, CEO, (509) 782-2092 or
Mike Lundstrom, CFO, (509) 782-5495
Consolidated Balance Sheets (UNAUDITED)
(Dollars in Thousands)
Cashmere Valley Bank and Subsidiary
June 30, 2026 | March 31, 2026 | June 30, 2025 | ||||||||||
Assets |
|
|
| |||||||||
Cash and Cash Equivalent: |
|
|
| |||||||||
Cash & due from banks | $ | 28,854 | $ | 24,654 | $ | 33,936 | ||||||
Interest bearing deposits | 199,465 | 234,279 | 172,379 | |||||||||
Fed funds sold | 4,630 | 4,374 | 3,742 | |||||||||
Total Cash and Cash Equivalent | 232,949 | 263,307 | 210,057 | |||||||||
Securities available for sale | 841,798 | 858,446 | 794,155 | |||||||||
Securities held to maturity, net of allowance for credit losses of | 120,758 | 122,139 | 126,587 | |||||||||
Federal Home Loan Bank stock, at cost | 5,009 | 5,054 | 5,053 | |||||||||
Loans held for sale | 4 | 328 | 504 | |||||||||
Loans | 1,033,361 | 971,887 | 971,669 | |||||||||
Allowance for credit losses | (11,547 | ) | (11,384 | ) | (12,019 | ) | ||||||
Net loans | 1,021,814 | 960,503 | 959,650 | |||||||||
Premises and equipment | 19,022 | 18,904 | 19,715 | |||||||||
Accrued interest receivable | 8,429 | 9,141 | 8,721 | |||||||||
Other real estate and foreclosed assets | 97 | 97 | 97 | |||||||||
Bank Owned Life Insurance | 27,819 | 27,580 | 28,080 | |||||||||
Goodwill | 7,661 | 7,661 | 7,579 | |||||||||
Intangibles, net | 2,292 | 2,462 | 2,367 | |||||||||
Mortgage servicing rights | 2,328 | 2,355 | 2,386 | |||||||||
Net deferred tax assets | 13,589 | 13,525 | 16,554 | |||||||||
Other assets | 13,265 | 9,495 | 10,023 | |||||||||
Total assets | $ | 2,316,834 | $ | 2,300,997 | $ | 2,191,528 | ||||||
Liabilities and Shareholders' Equity | ||||||||||||
Liabilities | ||||||||||||
Deposits: | ||||||||||||
Non-interest bearing demand | $ | 419,516 | $ | 407,167 | $ | 397,399 | ||||||
Savings and interest-bearing demand | 948,003 | 938,174 | 902,986 | |||||||||
Time | 595,247 | 598,011 | 538,795 | |||||||||
Total deposits | 1,962,766 | 1,943,352 | 1,839,180 | |||||||||
Accrued interest payable | 2,882 | 2,867 | 2,963 | |||||||||
Borrowings | 81,000 | 82,000 | 84,000 | |||||||||
Other liabilities | 12,295 | 13,565 | 16,076 | |||||||||
Total liabilities | 2,058,943 | 2,041,784 | 1,942,219 | |||||||||
Shareholders' Equity | ||||||||||||
Common stock (no par value); authorized 10,000,000 shares; | ||||||||||||
Issued and outstanding: 6/30/2026 -- 3,630,214 ; 3/31/2026 -- 3,713,761 ; 6/30/2025 -- 3,900,683 | -- | -- | -- | |||||||||
Additional paid-in capital | 8,843 | 6,667 | 5,789 | |||||||||
Treasury stock | (41,340 | ) | (31,784 | ) | (16,784 | ) | ||||||
Retained Earnings | 332,386 | 325,737 | 312,542 | |||||||||
Other comprehensive income | (43,278 | ) | (42,634 | ) | (53,095 | ) | ||||||
Total Cashmere Valley Bank shareholders' equity | 256,611 | 257,986 | 248,452 | |||||||||
Noncontrolling interest | 1,280 | 1,227 | 857 | |||||||||
Total shareholders' equity | 257,891 | 259,213 | 249,309 | |||||||||
Total liabilities and shareholders' equity | $ | 2,316,834 | $ | 2,300,997 | $ | 2,191,528 | ||||||
Quarterly Consolidated Statements of Income (UNAUDITED)
(Dollars in Thousands)
Cashmere Valley Bank & Subsidiary
For the quarters ended, | ||||||||||||
June 30, 2026 | March 31, 2026 | June 30, 2025 | ||||||||||
Interest Income |
|
|
| |||||||||
Loans and leases | $ | 13,936 | $ | 13,156 | $ | 13,506 | ||||||
Fed funds sold and deposits at other financial institutions | 1,859 | 2,059 | 1,573 | |||||||||
Securities available for sale: | ||||||||||||
Taxable | 8,569 | 8,201 | 8,375 | |||||||||
Tax-exempt | 349 | 449 | 356 | |||||||||
Securities held to maturty: | ||||||||||||
Taxable | 726 | 726 | 748 | |||||||||
Tax-exempt | 25 | 25 | 25 | |||||||||
Other interest income | -- | -- | -- | |||||||||
Total interest income | 25,464 | 24,616 | 24,583 | |||||||||
Interest Expense | ||||||||||||
Deposits | 7,254 | 7,199 | 7,041 | |||||||||
Borrowings | 781 | 784 | 748 | |||||||||
Total interest expense | 8,035 | 7,983 | 7,789 | |||||||||
Net interest income | 17,429 | 16,633 | 16,794 | |||||||||
Provision for Credit Losses | 727 | 1,424 | 517 | |||||||||
Net interest income after provision for credit losses | 16,702 | 15,209 | 16,277 | |||||||||
Non-Interest Income | ||||||||||||
Service charges on deposit accounts | 554 | 527 | 536 | |||||||||
Mortgage banking operations | 370 | 376 | 429 | |||||||||
Net gain (loss) on sales of securities available for sale | (9 | ) | 55 | -- | ||||||||
Brokerage commissions | 48 | 203 | 238 | |||||||||
Insurance commissions and fees | 2,475 | 2,635 | 2,482 | |||||||||
Net interchange income | 1,066 | 1,113 | 1,024 | |||||||||
Earnings from Bank Owned Life Insurance | 240 | 236 | 218 | |||||||||
Dividends from correspondent banks | 152 | 162 | 101 | |||||||||
Other | 411 | 297 | 323 | |||||||||
Total non-interest income | 5,307 | 5,604 | 5,351 | |||||||||
Non-Interest Expense | ||||||||||||
Salaries and employee benefits | 7,516 | 8,066 | 7,334 | |||||||||
Occupancy and equipment | 1,055 | 839 | 832 | |||||||||
Audits and examinations | 120 | 241 | 190 | |||||||||
State and local business and occupation taxes | 489 | 476 | 383 | |||||||||
FDIC insurance & WA state assessments | 276 | 303 | 256 | |||||||||
Legal and professional fees | 358 | 431 | 330 | |||||||||
Net (gain) on foreclosed real estate | -- | (94 | ) | -- | ||||||||
Check losses and charge-offs | 156 | 114 | 110 | |||||||||
Low-income housing investment losses | 70 | 45 | (315 | ) | ||||||||
Data processing | 1,772 | 1,752 | 1,738 | |||||||||
Product delivery | 359 | 396 | 269 | |||||||||
Other | 1,249 | 1,097 | 1,077 | |||||||||
Total non-interest expense | 13,420 | 13,666 | 12,204 | |||||||||
Income before income taxes | 8,589 | 7,147 | 9,424 | |||||||||
Income Taxes | 1,670 | 1,302 | 1,379 | |||||||||
Net income | 6,919 | 5,845 | 8,045 | |||||||||
Net income attributable to noncontrolling interest | 52 | 49 | 47 | |||||||||
Net income attributable to Cashmere Valley Bank | $ | 6,867 | $ | 5,796 | $ | 7,998 | ||||||
Earnings Per Share | ||||||||||||
Basic | $ | 1.89 | $ | 1.55 | $ | 2.05 | ||||||
Diluted | $ | 1.88 | $ | 1.54 | $ | 2.04 | ||||||
Year-to-Date Consolidated Statements of Income (UNAUDITED)
(Dollars in Thousands)
Cashmere Valley Bank & Subsidiary
For the six months ended, | ||||||||
June 30, 2026 | June 30, 2025 | |||||||
Interest Income |
|
| ||||||
Loans and leases | $ | 27,093 | $ | 26,340 | ||||
Fed funds sold and deposits at other financial institutions | 3,918 | 3,530 | ||||||
Securities available for sale: | ||||||||
Taxable | 16,769 | 16,191 | ||||||
Tax-exempt | 798 | 688 | ||||||
Securities held to maturity: | ||||||||
Taxable | 1,452 | 1,511 | ||||||
Tax-exempt | 51 | 49 | ||||||
Other interest income | -- | -- | ||||||
Total interest income | 50,081 | 48,309 | ||||||
Interest Expense | ||||||||
Deposits | 14,454 | 14,152 | ||||||
Borrowings | 1,565 | 1,149 | ||||||
Total interest expense | 16,019 | 15,301 | ||||||
Net interest income | 34,062 | 33,008 | ||||||
Provision for Credit Losses | 2,152 | 1,278 | ||||||
Net interest income after provision for credit losses | 31,910 | 31,730 | ||||||
Non-Interest Income | ||||||||
Service charges on deposit accounts | 1,081 | 1,033 | ||||||
Mortgage banking operations | 746 | 780 | ||||||
Net gain (loss) on sales of securities available for sale | 45 | 130 | ||||||
Brokerage commissions | 251 | 565 | ||||||
Insurance commissions and fees | 5,110 | 5,149 | ||||||
Net interchange income | 2,179 | 2,162 | ||||||
Earnings from Bank Owned Life Insurance | 476 | 433 | ||||||
Dividends from correspondent banks | 314 | 210 | ||||||
Other | 709 | 610 | ||||||
Total non-interest income | 10,911 | 11,072 | ||||||
Non-Interest Expense | ||||||||
Salaries and employee benefits | 15,582 | 15,092 | ||||||
Occupancy and equipment | 1,894 | 1,700 | ||||||
Audits and examinations | 361 | 437 | ||||||
State and local business and occupation taxes | 964 | 741 | ||||||
FDIC insurance & WA state assessments | 579 | 523 | ||||||
Legal and professional fees | 789 | 577 | ||||||
Net (gain) on foreclosed real estate | (94 | ) | -- | |||||
Check losses and charge-offs | 270 | 228 | ||||||
Low-income housing investment losses | 114 | (157 | ) | |||||
Data processing | 3,524 | 3,506 | ||||||
Product delivery | 755 | 633 | ||||||
Other | 2,346 | 2,137 | ||||||
Total non-interest expense | 27,084 | 25,417 | ||||||
Income before income taxes | 15,737 | 17,385 | ||||||
Income Taxes | 2,972 | 2,881 | ||||||
Net income | 12,765 | 14,504 | ||||||
Net income attributable to noncontrolling interest | 101 | 95 | ||||||
Net income attributable to Cashmere Valley Bank | $ | 12,664 | $ | 14,409 | ||||
Earnings Per Share | ||||||||
Basic | $ | 3.44 | $ | 3.70 | ||||
Diluted | $ | 3.42 | $ | 3.69 | ||||
SOURCE: Cashmere Valley Bank
View the original press release on ACCESS Newswire