Cashmere Valley Bank Reports Quarterly Earnings of $5.8 Million
Rhea-AI Summary
Cashmere Valley Bank (OTCQX:CSHX) reported quarterly net income of $5.8 million and diluted EPS of $1.54 for the quarter ended March 31, 2026, a 6.1% decline in EPS year-over-year. Deposits rose to $1.94 billion (+6.2% YoY) while gross loans reached $971.9 million.
The bank completed tender offers repurchasing 327,419 shares (8.38%)/b) for
AI-generated analysis. Not financial advice.
Positive
- Tender offers repurchased 327,419 shares (8.38%) for $24.6 million
- Deposits increased to $1.94 billion (+$113.7 million, 6.2% YoY)
- Investment portfolio grew by $101.2 million to $980.6 million
Negative
- Net income declined leading ROA down to 1.04% and ROE to 9.0%
- Provision for credit losses rose to $1.4 million from $761,000 (Q1 2025)
- GAAP equity decreased 5.5% YoY; repurchases reduced equity by $15.0 million
News Market Reaction – CSHX
On the day this news was published, CSHX gained 0.95%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
CASHMERE, WA / ACCESS Newswire / April 22, 2026 / Cashmere Valley Bank (OTCQX:CSHX) ("Bank"), announced quarterly earnings of
"We saw mixed results in the first quarter," said Greg Oakes, President and CEO. "Loan and deposit totals are both up nicely from year end. We were also very pleased with the results of the tender offers to repurchase common shares, and the tender offers provided liquidity to previous shareholders. Conversely, net income declined from a year ago, which is disappointing. The decrease in net income was primarily due to increases in loan loss provision expense from delinquencies and charge-offs in the indirect dealer and equipment finance portfolios."
Q1 Highlights
The Bank reported the following statement of condition highlights as of March 31, 2026:
As of March 31, 2026, gross loans totaled
$971.9 million , which represented an increase from March 31, 2025 of$4.5 million , or0.5% . The Bank experienced loan growth in 2026 as loan balances increased$20.0 million since December 31, 2025.
Deposit balances totaled
$1.94 billion as of March 31, 2026. Deposit balances increased$113.7 million , or6.2% , from March 31, 2025. Deposit balances increased from December 31, 2025 by$42.6 million , or2.2% . Non-interest deposits totaled$407.2 million as of March 31, 2026, which represented21.0% of total deposits.
Return on assets decreased from
1.23% to1.04% , due to reduced net income in combination with asset growth.
Return on equity decreased from
11.1% to9.0% , due to reduced net income along with an increasing equity base.
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 .
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 first quarter of 2026, a gain on sale of securities of
Loans and Credit Quality
Gross loans increased
The allowance for credit losses on loans (ACL) was
Credit quality remains strong with non-performing loans representing
Deposits
Deposits totaled
Equity
Tier 1 capital remains strong. Tier 1 capital increased to
As of March 31, 2026, GAAP equity capital decreased
Earnings
Net Interest Income
Net interest income totaled
Interest income on available for sale and held to maturity securities increased
Loan interest income increased
Interest income from deposits with other financial institutions and federal funds sold 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
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 | ||||||||||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||
Assets | ||||||||||||
Cash and Cash Equivalent: | ||||||||||||
Cash & due from banks | $ | 24,654 | $ | 31,097 | $ | 27,192 | ||||||
Interest bearing deposits | 234,279 | 216,434 | 156,653 | |||||||||
Fed funds sold | 4,374 | 3,389 | 2,342 | |||||||||
Total Cash and Cash Equivalent | 263,307 | 250,920 | 186,187 | |||||||||
Securities available for sale | 858,446 | 862,103 | 750,761 | |||||||||
Securities held to maturity, net of allowance for credit losses of | 122,139 | 123,412 | 128,589 | |||||||||
Federal Home Loan Bank stock, at cost | 5,054 | 5,008 | 2,848 | |||||||||
Loans held for sale | 328 | 1,135 | 7 | |||||||||
Loans | 971,887 | 951,869 | 967,398 | |||||||||
Allowance for credit losses | (11,384 | ) | (11,399 | ) | (12,391 | ) | ||||||
Net loans | 960,503 | 940,470 | 955,007 | |||||||||
Premises and equipment | 18,904 | 19,235 | 19,251 | |||||||||
Accrued interest receivable | 9,141 | 8,868 | 8,842 | |||||||||
Other real estate and foreclosed assets | 97 | 148 | 97 | |||||||||
Bank Owned Life Insurance | 27,580 | 27,343 | 27,862 | |||||||||
Goodwill | 7,661 | 7,579 | 7,579 | |||||||||
Intangibles, net | 2,462 | 2,233 | 2,562 | |||||||||
Mortgage servicing rights | 2,355 | 2,382 | 2,406 | |||||||||
Net deferred tax assets | 13,525 | 13,137 | 16,780 | |||||||||
Other assets | 9,495 | 9,339 | 13,649 | |||||||||
Total assets | $ | 2,300,997 | $ | 2,273,312 | $ | 2,122,427 | ||||||
Liabilities and Shareholders' Equity | ||||||||||||
Liabilities | ||||||||||||
Deposits: | ||||||||||||
Non-interest bearing demand | $ | 407,167 | $ | 393,002 | $ | 382,582 | ||||||
Savings and interest-bearing demand | 938,174 | 927,918 | 926,100 | |||||||||
Time | 598,011 | 579,856 | 521,007 | |||||||||
Total deposits | 1,943,352 | 1,900,776 | 1,829,689 | |||||||||
Accrued interest payable | 2,867 | 3,073 | 2,881 | |||||||||
Borrowings | 82,000 | 83,000 | 35,001 | |||||||||
Other liabilities | 13,565 | 13,992 | 14,626 | |||||||||
Total liabilities | 2,041,784 | 2,000,841 | 1,882,197 | |||||||||
Shareholders' Equity | ||||||||||||
Common stock (no par value); authorized 10,000,000 shares; | ||||||||||||
Issued and outstanding: 3/31/2026 -- 3,713,761 ; 12/31/2025 -- 3,907,525 ; 3/31/2025 -- 3,897,994 | -- | -- | -- | |||||||||
Additional paid-in capital | 6,667 | 6,248 | 5,608 | |||||||||
Treasury stock | (31,784 | ) | (16,784 | ) | (16,784 | ) | ||||||
Retained Earnings | 325,737 | 323,653 | 304,544 | |||||||||
Other comprehensive income | (42,634 | ) | (41,823 | ) | (53,947 | ) | ||||||
Total Cashmere Valley Bank shareholders' equity | 257,986 | 271,294 | 239,421 | |||||||||
Noncontrolling interest | 1,227 | 1,177 | 809 | |||||||||
Total shareholders' equity | 259,213 | 272,471 | 240,230 | |||||||||
Total liabilities and shareholders' equity | $ | 2,300,997 | $ | 2,273,312 | $ | 2,122,427 | ||||||
Quarterly Consolidated Statements of Income (UNAUDITED) | ||||||||||||
(Dollars in Thousands) | ||||||||||||
Cashmere Valley Bank & Subsidiary | ||||||||||||
For the quarters ended, | ||||||||||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||
Interest Income | ||||||||||||
Loans and leases | $ | 13,156 | $ | 13,408 | $ | 12,834 | ||||||
Fed funds sold and deposits at other financial institutions | 2,059 | 2,361 | 1,958 | |||||||||
Securities available for sale: | ||||||||||||
Taxable | 8,201 | 8,688 | 7,816 | |||||||||
Tax-exempt | 449 | 461 | 332 | |||||||||
Securities held to maturity: | ||||||||||||
Taxable | 726 | 733 | 762 | |||||||||
Tax-exempt | 25 | 25 | 24 | |||||||||
Other interest income | -- | 595 | -- | |||||||||
Total interest income | 24,616 | 26,271 | 23,726 | |||||||||
Interest Expense | ||||||||||||
Deposits | 7,199 | 7,605 | 7,111 | |||||||||
Borrowings | 784 | 829 | 401 | |||||||||
Total interest expense | 7,983 | 8,434 | 7,512 | |||||||||
Net interest income | 16,633 | 17,837 | 16,214 | |||||||||
Provision for Credit Losses | 1,424 | 859 | 761 | |||||||||
Net interest income after provision for credit losses | 15,209 | 16,978 | 15,453 | |||||||||
Non-Interest Income | ||||||||||||
Service charges on deposit accounts | 527 | 523 | 496 | |||||||||
Mortgage banking operations | 376 | 514 | 351 | |||||||||
Net gain (loss) on sales of securities available for sale | 55 | -- | 130 | |||||||||
Brokerage commissions | 203 | 330 | 327 | |||||||||
Insurance commissions and fees | 2,635 | 2,330 | 2,667 | |||||||||
Net interchange income | 1,113 | 1,063 | 1,138 | |||||||||
Earnings from Bank Owned Life Insurance | 236 | 242 | 215 | |||||||||
Dividends from correspondent banks | 162 | 156 | 109 | |||||||||
Other | 297 | 305 | 288 | |||||||||
Total non-interest income | 5,604 | 5,463 | 5,721 | |||||||||
Non-Interest Expense | ||||||||||||
Salaries and employee benefits | 8,066 | 7,758 | 7,758 | |||||||||
Occupancy and equipment | 839 | 834 | 868 | |||||||||
Audits and examinations | 241 | 29 | 247 | |||||||||
State and local business and occupation taxes | 476 | 464 | 358 | |||||||||
FDIC insurance & WA state assessments | 303 | 267 | 268 | |||||||||
Legal and professional fees | 431 | 264 | 247 | |||||||||
Net (gain) on foreclosed real estate | (94 | ) | -- | -- | ||||||||
Check losses and charge-offs | 114 | 145 | 118 | |||||||||
Low-income housing investment losses | 45 | 66 | 158 | |||||||||
Data processing | 1,752 | 1,787 | 1,768 | |||||||||
Product delivery | 396 | 354 | 364 | |||||||||
Other | 1,097 | 1,072 | 1,059 | |||||||||
Total non-interest expense | 13,666 | 13,040 | 13,213 | |||||||||
Income before income taxes | 7,147 | 9,401 | 7,961 | |||||||||
Income Taxes | 1,302 | 2,280 | 1,502 | |||||||||
Net income | 5,845 | 7,121 | 6,459 | |||||||||
Net income attributable to noncontrolling interest | 49 | 32 | 48 | |||||||||
Net income attributable to Cashmere Valley Bank | $ | 5,796 | $ | 7,089 | $ | 6,411 | ||||||
Earnings Per Share | ||||||||||||
Basic | $ | 1.55 | $ | 1.81 | $ | 1.65 | ||||||
Diluted | $ | 1.54 | $ | 1.81 | $ | 1.64 | ||||||
SOURCE: Cashmere Valley Bank
View the original press release on ACCESS Newswire