Cashmere Valley Bank Reports Strong Earnings Totaling $7.4 Million for the Third Quarter and $20.0 Million Year to Date, CEO Elect Len Devaisher Begins His Tenure with the Bank
Loan and deposit growth accompanied lower nine-month earnings, higher operating expenses and a decline in GAAP capital.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Cashmere Valley Bank (CSHX) reported third-quarter earnings of $7.4 million, down from the same quarter a year earlier despite higher diluted earnings per share. Quarterly diluted EPS rose 2.5% to $2.02. Nine-month earnings fell to $20.0 million from $22.1 million, while diluted EPS declined 4.1% to $5.43.
Gross loans reached $1.156 billion, up 19.8% year over year, and deposits increased 4.1% to $1.976 billion. Non-performing loans declined to 0.23% of gross loans from 0.48%. Nine-month net interest income rose to $52.4 million, but non-interest expense increased to $40.7 million from $38.0 million. Third-quarter CEO transition costs totaled $545,000. GAAP capital fell to $243.1 million following repurchases and higher unrealized securities losses. Len Devaisher has joined as CEO Elect and will succeed Greg Oakes after his December 31, 2026 retirement.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointThird-quarter diluted EPS increased 2.5% to $2.02 from the third quarter of 2025.
- Moderate pointGross loans increased 19.8% year over year to $1.156 billion at September 30, 2026.
- Moderate pointDeposits rose 4.1% year over year to $1.976 billion, also increasing $75.2 million from December 31, 2025.
- Moderate pointNon-performing loans declined to 0.23% of gross loans from 0.48% a year earlier.
- Moderate pointThird-quarter net interest income reached $18.308 million, versus $17.429 million last quarter and $17.437 million a year earlier.
- Moderate pointCompleted first- and second-quarter share repurchases returned $24.6 million to shareholders. 7.6% of market cap
- Moderate pointChelan and Douglas County MSA market share improved 1.63 percentage points to 44.95% as of June 30, 2026.
6 minor points
- Minor pointNon-interest-bearing deposits increased $11.2 million year over year to $421.4 million, representing 21.3% of deposits.
- Minor pointNine-month net interest income increased to $52.4 million from $50.4 million in 2025.
- Minor pointThird-quarter net interest margin widened to 3.25% from 3.15% in the third quarter of 2025.
- Minor pointCost of funds decreased six basis points to 1.60% from September 30, 2025.
- Minor pointBorrowings declined to $81 million from $84 million at September 30, 2025.
- Minor point. Forward-looking: it has not happened yet and may not happen.East Wenatchee full-service branch construction has started; the bank expects opening in the first half of 2027.
Negative
- Moderate pointNine-month earnings fell to $20.0 million from $22.1 million; diluted EPS decreased 4.1% to $5.43.
- Moderate pointNine-month non-interest expense increased to $40.7 million from $38.0 million in 2025.
- Moderate pointNine-month credit-loss provision increased to $3.0 million from $2.1 million; third-quarter provision totaled $873,000.
- Moderate pointNine-month return on assets fell to 1.17% from 1.37% a year earlier.
- Moderate pointNine-month return on equity declined to 10.36% from 12.24% a year earlier.
- Moderate pointNine-month efficiency ratio worsened to 59.3% from 56.8% in 2025.
- Moderate pointGAAP capital declined $19.2 million year over year to $243.1 million, reflecting repurchases and higher unrealized losses.
- Moderate pointCash, cash equivalents and restricted cash fell to $135.1 million from $270.0 million, funding much of loan growth.
6 minor points
- Minor pointThird-quarter earnings declined to $7.4 million from $7.7 million in the third quarter of 2025.
- Minor pointNine-month non-interest income declined to $16.2 million from $16.6 million in 2025.
- Minor pointNine-month net interest margin narrowed to 3.15% from 3.20% in 2025.
- Minor pointUnrealized losses on available-for-sale securities increased to $62.3 million from $44.6 million a year earlier.
- Minor pointTier 1 capital declined to $293.7 million from $294.7 million at September 30, 2025.
- Minor pointNine-month income tax expense increased to $4.7 million from $4.6 million in 2025.
AI-generated analysis. How Rhea-AI works. Not financial advice.
CASHMERE, WA / ACCESS Newswire / October 20, 2026 / Cashmere Valley Bank (OTCQX:CSHX) ("Bank"), announced quarterly earnings of
As of September 30, 2026, deposit balances totaled
"I was pleased to see an increase in our earnings over the linked quarter," said Greg Oakes, President and CEO. "In addition to the earnings improvement seen throughout the year, our deposit franchise continues to increase market share. Our share of the market in the Chelan and Douglas County MSA improved 1.63 percentage points to
Len Devaisher, CEO Elect, commented, "I am thrilled to begin my role with Cashmere Valley Bank. This opportunity was compelling because of the capabilities and culture of the institution and its track record of positively impacting its customers and communities. As shown in this quarter's results, that impact translates into benefits for all of our stakeholders."
Q3 Highlights
The Bank reported the following statement of condition highlights as of September 30, 2026:
- As of September 30, 2026, gross loans totaled
$1.156 billion , which represented a significant increase from September 30, 2025 of$190.8 million , or19.8% .
- Non-interest deposits totaled
$421.4 million , or21.3% , of the Bank's total deposits. Non-interest deposits increased$11.2 million from September 30, 2025.
- The Bank's year to date return on assets was
1.17% , which was a decrease from1.37% from the prior year. Return on assets for the third quarter of 2026 was1.26% .
- The Bank's return on equity through the first nine months of 2026 was
10.36% as compared to12.24% one year ago. Return on equity has declined due to a reduction in net income in combination with a higher year to date average equity balance. Return on equity during the third quarter of 2026 was11.34% .
- GAAP capital totaled
$243.1 million at September 30, 2026. The Bank's equity to assets ratio totaled10.3% on September 30, 2026. Equity decreased year over year due to share repurchases and an increase in unrealized losses on available for sale securities. Unrealized losses increased from$44.6 million to$62.3 million at the end of the third quarter.
Cash, Cash Equivalents and Restricted Cash
Total cash, cash equivalents and restricted cash totaled
Investments
The fair value of the Bank's available for sale investment portfolio totaled
Year to date the Bank recorded
Loans and Credit Quality
Gross loans totaled
At September 30, 2026, the allowance for credit losses on loans (ACL) was
Credit quality remained strong with non-performing loans representing
Deposits
Total deposits increased by
Equity
As of September 30, 2026, Tier 1 capital remains strong. As of September 30, 2026, Tier 1 capital decreased slightly to
GAAP capital reflected a decrease of
Earnings
Net Interest Income
For the nine months ended September 30, 2026, net interest income totaled
For the quarter ended September 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
Construction has started in earnest on the new branch facility in East Wenatchee along Grant Rd. This location will be a full-service branch and is expected to open in the first half of 2027.
The Bank's efficiency ratio was
Provision expense for credit losses increased to
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
Len Devaisher, CEO Elect, (509) 665-1081
Mike Lundstrom, CFO, (509) 782-5495
Consolidated Balance Sheets (UNAUDITED)
(Dollars in Thousands)
Cashmere Valley Bank and Subsidiary
| September 30, 2026 | June 30, 2026 | September 30, 2025 | ||||||||||
Assets | ||||||||||||
Cash and Cash Equivalent: | ||||||||||||
Cash & due from banks | $ | 21,172 | $ | 28,854 | $ | 26,245 | ||||||
Interest bearing deposits | 110,413 | 199,465 | 239,553 | |||||||||
Fed funds sold | 3,467 | 4,630 | 4,212 | |||||||||
Total Cash and Cash Equivalent | 135,052 | 232,949 | 270,010 | |||||||||
Securities available for sale | 810,615 | 841,798 | 816,440 | |||||||||
Securities held to maturity, net of allowance for credit losses of | 118,484 | 120,758 | 124,814 | |||||||||
Federal Home Loan Bank stock, at cost | 5,009 | 5,009 | 5,053 | |||||||||
Loans held for sale | 4 | 4 | 5 | |||||||||
Loans | 1,155,511 | 1,033,361 | 964,663 | |||||||||
Allowance for credit losses | (11,826 | ) | (11,547 | ) | (12,136 | ) | ||||||
Net loans | 1,143,685 | 1,021,814 | 952,527 | |||||||||
Premises and equipment | 19,640 | 19,022 | 19,430 | |||||||||
Accrued interest receivable | 9,526 | 8,429 | 9,313 | |||||||||
Other real estate and foreclosed assets | 97 | 97 | 97 | |||||||||
Bank Owned Life Insurance | 28,081 | 27,819 | 27,101 | |||||||||
Goodwill | 7,661 | 7,661 | 7,579 | |||||||||
Intangibles, net | 2,172 | 2,292 | 2,427 | |||||||||
Mortgage servicing rights | 2,291 | 2,328 | 2,375 | |||||||||
Net deferred tax assets | 18,752 | 13,589 | 14,304 | |||||||||
Other assets | 37,153 | 13,265 | 9,608 | |||||||||
Total assets | $ | 2,338,222 | $ | 2,316,834 | $ | 2,261,083 | ||||||
Liabilities and Shareholders' Equity | ||||||||||||
Liabilities | ||||||||||||
Deposits: | ||||||||||||
Non-interest bearing demand | $ | 421,385 | $ | 419,516 | $ | 410,200 | ||||||
Savings and interest-bearing demand | 952,820 | 948,003 | 918,469 | |||||||||
Time | 601,764 | 595,247 | 568,657 | |||||||||
Total deposits | 1,975,969 | 1,962,766 | 1,897,326 | |||||||||
Accrued interest payable | 2,894 | 2,882 | 3,138 | |||||||||
Borrowings | 81,000 | 81,000 | 84,000 | |||||||||
Other liabilities | 35,286 | 12,295 | 14,393 | |||||||||
Total liabilities | 2,095,149 | 2,058,943 | 1,998,857 | |||||||||
Shareholders' Equity | ||||||||||||
Common stock (no par value); authorized 10,000,000 shares; | ||||||||||||
Issued and outstanding: 9/30/2026 -- 3,635,717 ; 6/30/2026 -- 3,630,214 ; 9/30/2025 -- 3,906,693 | -- | -- | -- | |||||||||
Additional paid-in capital | 9,260 | 8,843 | 6,191 | |||||||||
Treasury stock | (41,340 | ) | (41,340 | ) | (16,784 | ) | ||||||
Retained Earnings | 336,137 | 332,386 | 316,563 | |||||||||
Other comprehensive income | (62,316 | ) | (43,278 | ) | (44,633 | ) | ||||||
Total Cashmere Valley Bank shareholders' equity | 241,741 | 256,611 | 261,337 | |||||||||
Noncontrolling interest | 1,332 | 1,280 | 889 | |||||||||
Total shareholders' equity | 243,073 | 257,891 | 262,226 | |||||||||
Total liabilities and shareholders' equity | $ | 2,338,222 | $ | 2,316,834 | $ | 2,261,083 | ||||||
Quarterly Consolidated Statements of Income (UNAUDITED)
(Dollars in Thousands)
Cashmere Valley Bank & Subsidiary
| For the quarters ended, | ||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | ||||||||||
Interest Income | ||||||||||||
Loans and leases | $ | 15,318 | $ | 13,936 | $ | 13,613 | ||||||
Fed funds sold and deposits at other financial institutions | 1,388 | 1,859 | 2,358 | |||||||||
Securities available for sale: | ||||||||||||
Taxable | 8,539 | 8,512 | 8,601 | |||||||||
Tax-exempt | 357 | 406 | 464 | |||||||||
Securities held to maturity: | ||||||||||||
Taxable | 702 | 726 | 734 | |||||||||
Tax-exempt | 25 | 25 | 25 | |||||||||
Other interest income | -- | -- | -- | |||||||||
Total interest income | 26,329 | 25,464 | 25,795 | |||||||||
Interest Expense | ||||||||||||
Deposits | 7,224 | 7,254 | 7,496 | |||||||||
Borrowings | 797 | 781 | 862 | |||||||||
Total interest expense | 8,021 | 8,035 | 8,358 | |||||||||
Net interest income | 18,308 | 17,429 | 17,437 | |||||||||
Provision for Credit Losses | 873 | 727 | 837 | |||||||||
Net interest income after provision for credit losses | 17,435 | 16,702 | 16,600 | |||||||||
Non-Interest Income | ||||||||||||
Service charges on deposit accounts | 566 | 554 | 502 | |||||||||
Mortgage banking operations | 362 | 370 | 463 | |||||||||
Net gain (loss) on sales of securities available for sale | -- | (9 | ) | -- | ||||||||
Brokerage commissions | 82 | 48 | 304 | |||||||||
Insurance commissions and fees | 2,487 | 2,475 | 2,134 | |||||||||
Net interchange income | 1,026 | 1,066 | 1,073 | |||||||||
Earnings from Bank Owned Life Insurance | 262 | 240 | 559 | |||||||||
Dividends from correspondent banks | 159 | 152 | 142 | |||||||||
Other | 372 | 411 | 341 | |||||||||
Total non-interest income | 5,316 | 5,307 | 5,518 | |||||||||
Non-Interest Expense | ||||||||||||
Salaries and employee benefits | 8,262 | 7,516 | 7,476 | |||||||||
Occupancy and equipment | 879 | 1,055 | 840 | |||||||||
Audits and examinations | 78 | 120 | 43 | |||||||||
State and local business and occupation taxes | 499 | 489 | 417 | |||||||||
FDIC insurance & WA state assessments | 277 | 276 | 257 | |||||||||
Legal and professional fees | 279 | 358 | 356 | |||||||||
Net (gain) on foreclosed real estate | -- | -- | -- | |||||||||
Check losses and charge-offs | 142 | 156 | 101 | |||||||||
Low-income housing investment losses | 134 | 70 | 58 | |||||||||
Data processing | 1,618 | 1,772 | 1,734 | |||||||||
Product delivery | 376 | 359 | 330 | |||||||||
Other | 1,046 | 1,249 | 1,020 | |||||||||
Total non-interest expense | 13,590 | 13,420 | 12,632 | |||||||||
Income before income taxes | 9,161 | 8,589 | 9,486 | |||||||||
Income Taxes | 1,726 | 1,670 | 1,727 | |||||||||
Net income | 7,435 | 6,919 | 7,759 | |||||||||
Net income attributable to noncontrolling interest | 52 | 52 | 30 | |||||||||
Net income attributable to Cashmere Valley Bank | $ | 7,383 | $ | 6,867 | $ | 7,729 | ||||||
Earnings Per Share | ||||||||||||
Basic | $ | 2.04 | $ | 1.89 | $ | 1.98 | ||||||
Diluted | $ | 2.02 | $ | 1.88 | $ | 1.97 | ||||||
Year-to-Date Consolidated Statements of Income (UNAUDITED)
(Dollars in Thousands)
Cashmere Valley Bank & Subsidiary
| For the nine months ended, | ||||||||
| September 30, 2026 | September 30, 2025 | |||||||
Interest Income | ||||||||
Loans and leases | $ | 42,411 | $ | 39,953 | ||||
Fed funds sold and deposits at other financial institutions | 5,306 | 5,888 | ||||||
Securities available for sale: | ||||||||
Taxable | 25,197 | 24,791 | ||||||
Tax-exempt | 1,266 | 1,152 | ||||||
Securities held to maturity: | ||||||||
Taxable | 2,154 | 2,245 | ||||||
Tax-exempt | 76 | 74 | ||||||
Other interest income | -- | -- | ||||||
Total interest income | 76,410 | 74,103 | ||||||
Interest Expense | ||||||||
Deposits | 21,678 | 21,649 | ||||||
Borrowings | 2,362 | 2,011 | ||||||
Total interest expense | 24,040 | 23,660 | ||||||
Net interest income | 52,370 | 50,443 | ||||||
Provision for Credit Losses | 3,024 | 2,115 | ||||||
Net interest income after provision for credit losses | 49,346 | 48,328 | ||||||
Non-Interest Income | ||||||||
Service charges on deposit accounts | 1,647 | 1,534 | ||||||
Mortgage banking operations | 1,107 | 1,243 | ||||||
Net gain (loss) on sales of securities available for sale | 45 | 130 | ||||||
Brokerage commissions | 333 | 869 | ||||||
Insurance commissions and fees | 7,598 | 7,283 | ||||||
Net interchange income | 3,205 | 3,235 | ||||||
Earnings from Bank Owned Life Insurance | 738 | 992 | ||||||
Dividends from correspondent banks | 473 | 352 | ||||||
Other | 1,080 | 953 | ||||||
Total non-interest income | 16,226 | 16,591 | ||||||
Non-Interest Expense | ||||||||
Salaries and employee benefits | 23,844 | 22,568 | ||||||
Occupancy and equipment | 2,773 | 2,540 | ||||||
Audits and examinations | 439 | 480 | ||||||
State and local business and occupation taxes | 1,463 | 1,158 | ||||||
FDIC insurance & WA state assessments | 855 | 780 | ||||||
Legal and professional fees | 1,068 | 933 | ||||||
Net (gain) on foreclosed real estate | (94 | ) | -- | |||||
Check losses and charge-offs | 412 | 329 | ||||||
Low-income housing investment losses | 249 | (99 | ) | |||||
Data processing | 5,142 | 5,240 | ||||||
Product delivery | 1,131 | 963 | ||||||
Other | 3,394 | 3,156 | ||||||
Total non-interest expense | 40,676 | 38,048 | ||||||
Income before income taxes | 24,896 | 26,871 | ||||||
Income Taxes | 4,698 | 4,608 | ||||||
Net income | 20,198 | 22,263 | ||||||
Net income attributable to noncontrolling interest | 152 | 126 | ||||||
Net income attributable to Cashmere Valley Bank | $ | 20,046 | $ | 22,137 | ||||
Earnings Per Share | ||||||||
Basic | $ | 5.47 | $ | 5.68 | ||||
Diluted | $ | 5.43 | $ | 5.66 | ||||
SOURCE: Cashmere Valley Bank
View the original press release on ACCESS Newswire
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Cashmere Valley Bank's third-quarter 2026 earnings and diluted EPS?
Cashmere Valley Bank earned $7.4 million in the third quarter of 2026, compared with $7.7 million a year earlier. Diluted earnings per share increased 2.5% to $2.02, up $0.05 from the third quarter of 2025.
When will Len Devaisher become Cashmere Valley Bank's President and CEO?
Len Devaisher will become President and CEO after Greg Oakes retires on December 31, 2026. Devaisher has already begun working at the bank as CEO Elect.
How long will Cashmere Valley Bank's CEO transition costs continue?
The bank expects many CEO recruitment and retention costs to continue through year end before subsiding. Those transition costs totaled $545,000 in the third quarter.
What was Cashmere Valley Bank's loan-loss allowance at September 30, 2026?
The allowance for credit losses on loans was $11.8 million, or 1.02% of gross loans, at September 30, 2026. A year earlier, the allowance was $12.1 million, or 1.26% of gross loans.
Which loan categories drove Cashmere Valley Bank's growth during 2026?
Commercial real estate loans increased $41.0 million from December 31, 2025, the largest increase among the categories identified. Dealer loans rose $33.5 million, municipal loans $31.1 million, adjustable-rate mortgages $18.3 million, commercial loans $14.7 million and equipment finance loans $10.4 million.