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

Rhea-AI Summary

CW Bancorp (OTCQX: CWBK) reported Q1 2026 diluted EPS of $1.18, up 22%, and consolidated net income of $3.5 million, up 19% versus Q1 2025. Total assets were $1.246 billion (up 8% year-over-year). Net interest income rose to $10.8 million; net interest margin was 3.75%. Non-interest income declined 22% and the efficiency ratio improved to 58.39%. Capital ratios remain well above "well capitalized" thresholds. The company announced intent to partially redeem $15.0 million of subordinated notes on May 15, 2026.

Positive

• Diluted EPS +22% to $1.18
• Net income +19% to $3.5M
• Cash and due from banks +61% ($256.9M)
• Securities available for sale +21% ($162.96M)
• Intent to redeem $15.0M subordinated notes

Negative

• Non-interest income -22% for Q1 2026
• Loans outstanding decreased 3% year-over-year
• ACL to total loans modestly declined to 1.36%

News Market Reaction – CWBK

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In the Apr 30 session, CWBK gained 2.01%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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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

 

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SOURCE CW Bancorp

FAQ

What were CW Bancorp (CWBK) Q1 2026 earnings per share and net income?

Diluted EPS was $1.18 and net income was $3.5 million for Q1 2026. According to the company, diluted EPS rose 22% and net income increased 19% versus Q1 2025, reflecting higher net interest income and expense control.

How did CW Bancorp's balance sheet change in Q1 2026 for CWBK?

Total assets were $1.246 billion, up 8% year-over-year. According to the company, cash and due from banks increased 61%, investment securities rose, and loans declined modestly versus March 31, 2025.

What happened to CW Bancorp's non-interest income and efficiency ratio in Q1 2026?

Non-interest income fell by 22% while the efficiency ratio improved to 58.39%. According to the company, lower fee income was offset by disciplined expense management that reduced operating costs.

What capital and liquidity metrics did CW Bancorp report for Q1 2026 (CWBK)?

Tier 1 leverage was 11.89%, CET1 was 17.98%, and total risk-based capital was 19.23%. According to the company, capital ratios remain above regulatory "well capitalized" thresholds and liquidity strengthened.

Did CW Bancorp (CWBK) announce any debt or capital actions in Q1 2026?

Yes. The company provided notice to partially redeem $15.0 million of subordinated notes on May 15, 2026. According to the company, $17.5 million of those notes will remain outstanding after the redemption.