Cashmere Valley Bank Reports Strong Quarterly Earnings of $8.0 Million, Increases Semi-Annual Dividend to $0.95 Per Share

Rhea-AI Summary

Cashmere Valley Bank (OTCQX:CSHX) reported strong Q2 2025 financial results with quarterly earnings of $8.0 million and year-to-date earnings of $14.4 million. The bank announced an increased semi-annual dividend of $0.95 per share, payable on August 11, 2025.

Key financial metrics include: diluted EPS of $2.04 for Q2 (up 19.3% YoY), total deposits of $1.839 billion (up 3.8% YoY), and gross loans of $971.7 million. The bank's net interest margin improved to 3.20% for H1 2025, while maintaining strong credit quality with non-performing loans at 0.41% of gross loans.

The bank's efficiency ratio improved to 58.9%, and Tier 1 capital increased to $290.3 million, demonstrating solid financial health and operational efficiency.

Positive

• Quarterly earnings increased 19.3% YoY to $2.04 per diluted share
• Semi-annual dividend increased to $0.95 per share
• Net interest margin expanded to 3.20% from 3.11% YoY
• Strong deposit growth of 3.8% YoY to $1.839 billion
• Robust capital position with Tier 1 capital increasing to $290.3 million
• Improved efficiency ratio to 58.9% from 59.2% YoY
• Strong credit quality maintained with non-performing loans at just 0.41%

Negative

• Gross loans decreased by $43.8 million YoY
• Return on equity declined to 12.26% from 13.48% YoY
• Non-performing loans increased from 0.23% to 0.41% YoY
• Non-interest expenses increased by $1.7 million YoY due to higher salaries and health insurance costs

CASHMERE, WA / ACCESS Newswire / July 22, 2025 / Cashmere Valley Bank (OTCQX:CSHX) ("Bank"), announced quarterly earnings of $8.0 million for the quarter ended June 30, 2025. Year-to-date earnings totaled $14.4 million as compared to $13.9 million for the six months ended June 30, 2024. Year-to-date diluted earnings per share equaled $3.69, representing an increase of $0.11 per share, or 3.1%. Quarterly diluted earnings per share totaled $2.04 in the second quarter, an increase of $0.33 per share, or 19.3%, from the second quarter 2024.

As of June 30, 2025, deposit balances totaled $1.839 billion, an increase of $1.2 million, or 0.1%, from December 31, 2024. From the same period last year, deposit balances increased $66.7 million, or 3.8%.

"I am very pleased with our financial results," said Greg Oakes, President and CEO. "Our net interest margin is expanding slowly but steadily, which has benefited net income. Loan and deposit growth have been a challenge but we continue to look for opportunities to grow. We are hopeful that we will break ground during the third quarter for our new East Wenatchee location off Grant Rd."

Q2 Highlights

The Bank reported the following statement of condition highlights as of June 30, 2025:

• On July 22, 2025, the Bank's Board of Directors declared a dividend of $0.95 per share. The dividend will be payable on August 11, 2025 for shareholders of record on August 1, 2025.

• As of June 30, 2025, gross loans totaled $971.7 million, representing a decrease from June 30, 2024 of $43.8 million. Loan totals were adversely affected by significant loan payoffs, the majority of which were in multifamily loans.

• Non-interest deposits totaled $397.4 million, or 21.6%, of the Bank's total deposits. Non-interest deposits increased 2.0%, or $7.8 million, from June 30, 2024.

• The Bank's year to date return on assets was unchanged from the prior year at 1.37%.

• The Bank's return on equity through the first six months of 2025 was 12.26% as compared to 13.48% one year ago. Return on equity has declined as the Bank's capital levels have increased through earnings and a reduction in unrealized losses on available for sale securities.

Cash, Cash Equivalents and Restricted Cash

Total cash, cash equivalents and restricted cash totaled $210.1 million at June 30, 2025, compared to $159.1 million at June 30, 2024. Management has focused on retaining higher cash balances due to the inversion in the treasury yield curve and management's goal to retain excess liquidity.

Investments

The fair value of the Bank's investment portfolio totaled $920.7 million at June 30, 2025, which represented an increase of $135.2 million from June 30, 2024. Held to maturity securities, net of allowance, totaled $126.6 million as of June 30, 2025 compared to $133.4 million as of June 30, 2024. Interest income on the securities portfolio increased from the prior year by $1.8 million to $18.4 million.

A gain on sale of securities of $130,000 was recorded in the first quarter as part of a small repositioning effort within the securities portfolio.

Loans and Credit Quality

Gross loans totaled $971.7 billion as of June 30, 2025 which represented an increase of $9.3 million from December 31, 2024 and a decrease of $43.8 million from June 30, 2024. Since December 31, 2024, commercial and agriculture loans increased $12.2 million, of which $5.8 million in growth originated in Equipment Finance loans, and commercial real estate loans increased $9.7 million. Construction and land development loans decreased $16.0 million and multifamily loans decreased $9.9 million since year end.

At June 30, 2025, the allowance for credit losses on loans (ACL) was 1.24% of gross loans as compared to 1.30% one year ago. The allowance balance was $12.0 million as of June 30, 2025.

Credit quality remains strong with non-performing loans representing 0.41% of gross loans as of June 30, 2025. This is an increase from 0.23% as of June 30, 2024.

Deposits

Total deposits increased by $66.7 million, or 3.8%, from June 30, 2024. From December 31, 2024 to June 30, 2025 total deposits increased $1.2 million, or 0.1%. Non-interest deposits totaled $397.4 million as of June 30, 2025, which represented 21.6% of total deposits. Since June 30, 2024 time deposits have increased $74.1 million to $538.8 million. The Bank's cost of funds has increased one basis point from June 30, 2024 to 1.65%.

Equity

As of June 30, 2025, Tier 1 capital remains strong. Tier 1 capital increased to $290.3 million from $266.7 million at June 30, 2024, due to earnings less dividends paid.

GAAP capital reflected an increase of $31.1 million from June 30, 2024, and an increase of $17.1 million from December 31, 2024. As of June 30, 2024, the Bank's GAAP capital to assets ratio was 11.38% as compared to 10.60% one year ago. GAAP capital levels increased primarily due to Bank earnings and a reduction of $5.6 million in unrealized losses. As of June 30, 2025, the capital effect from unrealized losses on available for sale securities and swaps totaled $53.1 million.

Earnings

Net Interest Income

For the six months ended, June 30, 2025, net interest income totaled $33.0 million compared to $30.9 million in the same period in 2024. Interest income from available for sale and held to maturity securities improved by $1.8 million, and income from cash increased $774,000. Interest income growth was partially offset by an increase in interest expense of $465,000. Loan income increased by $55,000 despite decreasing loan balances.

For the quarter ending June 30, 2025, net interest income increased $580,000 from the quarter ended March 31, 2025. The increase from the prior quarter was due to additional interest income on loans and securities. These increases were partially offset by an increase in borrowing costs and a reduction in income from cash holdings. The increase in borrowings was related to a $50.0 million borrowing and security purchase transaction. Derivatives were used against the borrowings and a portion of the investment purchases to help reduce interest rate risk, while locking in income spreads.

The net interest margin was 3.20% for the first six months of 2025, compared to 3.11% during the first six months of 2024. For the quarter ending June 30, 2025 the net interest margin was 3.23% as compared to 3.17% in the first quarter of 2024.

Non-Interest Income

Non-interest income totaled $11.1 million in the first six months of 2025 as compared to $10.0 million in the first six months of 2024. Insurance commissions and fees from the Bank's subsidiary Mitchell, Reed and Schmitten increased $974,000.

Non-Interest Expense

Non-interest expense totaled $25.4 million in the first six months of 2025, as compared to $23.7 million in the first six months of 2024. Salaries and benefits were the primary drivers of the increase due to investments in personnel along with significant increases in health insurance costs. From the prior quarter non-interest expenses declined $1.0 million due to a decrease in salaries and benefits of $424,000 and a true-up in low income housing losses.

The Bank's efficiency ratio was 58.9% in the first six months of 2025 as compared to 59.2% in the first six months of 2024.

Income tax expense increased from $2.6 million to $2.9 million. The Bank received full credit from its application for the Employee Tax Retention Credit in 2025. Along with the full principal payment the IRS paid interest on the Bank's overpayment of payroll taxes. Interest of $603,000 reduced the Bank's income tax expense. In 2024, $349,000 was reduced from income tax expense during tax provision calculations related to 2023 income tax expense.

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, 2025				March 31, 2025				June 30, 2024
Assets
Cash and Cash Equivalent:
Cash & due from banks		$	33,936			$	27,192			$	21,484
Interest bearing deposits			172,379				156,653				134,051
Fed funds sold			3,742				2,342				3,578
Total Cash and Cash Equivalent			210,057				186,187				159,113
Securities available for sale			794,155				750,761				652,136
Securities held to maturity, net of allowance for credit losses of $15, $15 and $18, respectively			126,587				128,589				133,434
Federal Home Loan Bank stock, at cost			5,053				2,848				2,936
Loans held for sale			504				7				673
Loans			971,669				967,398				1,015,444
Allowance for credit losses			(12,019	)			(12,391	)			(13,198	)
Net loans			959,650				955,007				1,002,246
Premises and equipment			19,715				19,251				20,097
Accrued interest receivable			8,721				8,842				9,416
Other real estate and foreclosed assets			97				97				97
Bank Owned Life Insurance			28,080				27,862				27,212
Goodwill			7,579				7,579				7,579
Intangibles, net			2,367				2,562				3,152
Mortgage servicing rights			2,386				2,406				2,477
Net deferred tax assets			16,554				16,780				18,394
Other assets			10,023				13,649				14,404
Total assets		$	2,191,528			$	2,122,427			$	2,053,366
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Non-interest bearing demand		$	397,399			$	386,886			$	389,580
Savings and interest-bearing demand			902,986				921,796				918,205
Time			538,795				521,007				464,688
Total deposits			1,839,180				1,829,689				1,772,473
Accrued interest payable			2,963				2,881				2,642
Borrowings			84,000				35,000				48,322
Other liabilities			16,076				14,627				11,725
Total liabilities			1,942,219				1,882,197				1,835,162
Shareholders' Equity
Common stock (no par value); authorized 10,000,000 shares;
Issued and outstanding: 6/30/2025 -- 3,900,683 ; 3/31/2025 -- 3,897,994 ; 6/30/2024 -- 3,890,990			--				--				--
Additional paid-in capital			5,789				5,608				5,184
Treasury stock			(16,784	)			(16,784	)			(16,784	)
Retained Earnings			312,542				304,544				290,710
Other comprehensive income			(53,095	)			(53,947	)			(61,360	)
Total Cashmere Valley Bank shareholders' equity			248,452				239,421				217,750
Noncontrolling interest			857				809				454
Total shareholders' equity			249,309				240,230				218,204
Total liabilities and shareholders' equity		$	2,191,528			$	2,122,427			$	2,053,366

Quarterly Consolidated Statements of Income
(UNAUDITED)

(Dollars in Thousands)
Cashmere Valley Bank & Subsidiary
		For the quarters ended,
		June 30, 2025				March 31, 2025				June 30, 2024
Interest Income
Loans and leases		$	13,506			$	12,834			$	13,264
Fed funds sold and deposits at other financial institutions			1,573				1,958				1,458
Securities available for sale:
Taxable			8,375				7,816				7,145
Tax-exempt			356				332				344
Securities held to maturty:
Taxable			748				762				786
Tax-exempt			25				24				47
Total interest income			24,583				23,726				23,044
Interest Expense
Deposits			7,041				7,111				7,166
Borrowings			748				401				612
Total interest expense			7,789				7,512				7,778
Net interest income			16,794				16,214				15,266
Provision for Credit Losses			517				761				657
Net interest income after provision for credit losses			16,277				15,453				14,609
Non-Interest Income
Service charges on deposit accounts			536				496				502
Mortgage banking operations			429				351				463
Net gain (loss) on sales of securities available for sale			--				130				--
Brokerage commissions			238				327				349
Insurance commissions and fees			2,482				2,667				2,225
Net interchange income			1,024				1,138				1,131
Earnings from Bank Owned Life Insurance			218				215				203
Dividends from correspondent banks			101				109				59
Other			323				288				309
Total non-interest income			5,351				5,721				5,241
Non-Interest Expense
Salaries and employee benefits			7,334				7,758				6,537
Occupancy and equipment			832				868				855
Audits and examinations			190				247				195
State and local business and occupation taxes			383				358				239
FDIC insurance & WA state assessments			256				268				224
Legal and professional fees			330				247				303
Check losses and charge-offs			110				118				148
Low-income housing investment losses			(315	)			158				169
Data processing			1,738				1,768				1,578
Product delivery			269				364				369
Other			1,077				1,059				1,087
Total non-interest expense			12,204				13,213				11,704
Income before income taxes			9,424				7,961				8,146
Income Taxes			1,379				1,502				1,472
Net income		$	8,045			$	6,459			$	6,674
Net income attributable to noncontrolling interest			47				48				27
Net income attributable to Cashmere Valley Bank		$	7,998			$	6,411			$	6,647
Earnings Per Share
Basic		$	2.05			$	1.65			$	1.71
Diluted		$	2.04			$	1.64			$	1.71

Year-to-Date Consolidated Statements of Income
(UNAUDITED)

(Dollars in Thousands)
Cashmere Valley Bank & Subsidiary
		For the six months ended,
		June 30, 2025				June 30, 2024
Interest Income
Loans and leases		$	26,340			$	26,285
Fed funds sold and deposits at other financial institutions			3,530				2,756
Securities available for sale:
Taxable			16,191				14,365
Tax-exempt			688				621
Securities held to maturity:
Taxable			1,511				1,571
Tax-exempt			49				94
Total interest income			48,309				45,692
Interest Expense
Deposits			14,152				13,615
Borrowings			1,149				1,221
Total interest expense			15,301				14,836
Net interest income			33,008				30,856
Provision for Credit Losses			1,278				602
Net interest income after provision for credit losses			31,730				30,254
Non-Interest Income
Service charges on deposit accounts			1,033				962
Mortgage banking operations			780				753
Net gain (loss) on sales of securities available for sale			130				--
Brokerage commissions			565				718
Insurance commissions and fees			5,149				4,175
Net interchange income			2,162				2,297
Earnings from Bank Owned Life Insurance			433				403
Dividends from correspondent banks			210				93
Other			610				567
Total non-interest income			11,072				9,968
Non-Interest Expense
Salaries and employee benefits			15,092				13,606
Occupancy and equipment			1,700				1,735
Audits and examinations			437				378
State and local business and occupation taxes			741				573
FDIC insurance & WA state assessments			523				468
Legal and professional fees			577				545
Check losses and charge-offs			228				268
Low-income housing investment losses			(157	)			169
Data processing			3,506				3,177
Product delivery			633				700
Other			2,137				2,079
Total non-interest expense			25,417				23,698
Income before income taxes			17,385				16,524
Income Taxes			2,881				2,565
Net income		$	14,504			$	13,959
Net income attributable to noncontrolling interest			95				33
Net income attributable to Cashmere Valley Bank			14,409				13,926
Earnings Per Share
Basic		$	3.70			$	3.58
Diluted		$	3.69			$	3.58

SOURCE: Cashmere Valley Bank

View the original press release on ACCESS Newswire

FAQ

What were Cashmere Valley Bank's (CSHX) Q2 2025 earnings?

Cashmere Valley Bank reported quarterly earnings of $8.0 million with diluted earnings per share of $2.04, representing a 19.3% increase from Q2 2024.

What is the new dividend amount for Cashmere Valley Bank (CSHX) shareholders?

The bank declared a semi-annual dividend of $0.95 per share, payable on August 11, 2025, to shareholders of record on August 1, 2025.

How much are Cashmere Valley Bank's (CSHX) total deposits as of Q2 2025?

Total deposits reached $1.839 billion, representing an increase of $66.7 million or 3.8% from June 30, 2024.

What is Cashmere Valley Bank's (CSHX) current loan portfolio performance?

The bank's gross loans totaled $971.7 billion with strong credit quality, showing non-performing loans at 0.41% and an allowance for credit losses of 1.24% of gross loans.

What is Cashmere Valley Bank's (CSHX) current capital position?

The bank maintains a strong capital position with Tier 1 capital of $290.3 million and a GAAP capital to assets ratio of 11.38%.