CW Bancorp Reports Fourth Quarter 2025 and Full Year Financial Results

Rhea-AI Summary

CW Bancorp (OTCQX: CWBK) reported consolidated net income of $3.45M for Q4 2025 ($1.17 diluted EPS) and $12.25M for full-year 2025 ($4.09 diluted EPS), declines of 10% and 5% in EPS versus prior-year periods. Key metrics: ROA 1.19% (Q4), ROTCE 15.04% (Q4), ACL to loans 1.32%, strong capital (tier 1 leverage 12.50%, total risk-based 18.86%), 64 consecutive profitable quarters. Net interest income rose 5% for 2025, non-interest income fell 20% for the year, and efficiency ratio modestly worsened to 60.64% for 2025.

Positive

• Net income of $12.246M for 2025 (diluted EPS $4.09)
• Net interest income up 5% year-over-year for 2025
• Strong capital ratios: tier 1 leverage 12.50%, total risk-based 18.86%
• 64 consecutive profitable quarters

Negative

• Q4 2025 diluted EPS down 10% year-over-year
• Non-interest income declined 20% for 2025
• Non-interest expense increased 6% for 2025, raising efficiency ratio to 60.64%

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IRVINE, Calif., Jan. 29, 2026 /PRNewswire/ -- CW Bancorp (OTCQX: CWBK), the parent company ("the Company") of CommerceWest Bank (the "Bank") reported consolidated net income for the fourth quarter of 2025 of $3,450,000 or $1.17 per diluted share as compared to $3,940,000 or $1.30 per diluted share for the fourth quarter of 2024, an EPS decrease of 10%.  The consolidated net income for the twelve months ended December 31, 2025 was $12,246,000 or $4.09 per diluted share as compared to $13,148,000 or $4.30 per diluted share for the twelve months ended December 31, 2024, an EPS decrease of 5%.

Key Financial Results for the three months ended December 31, 2025:

• EPS of $1.17
• Net income of $3.5 million
• Return on Assets of 1.19%
• Return on Tangible Equity of 15.04%
• ACL to total loans ratio of 1.32%
• No outstanding FRB or FHLB borrowings
• Strong Leverage ratio of 12.50% and total risk-based capital ratio of 18.86%
• 64 quarters of consecutive profits

Key Financial Results for the twelve months ended December 31, 2025:

• EPS of $4.09
• Net income of $12.2 million
• Return on Assets of 1.09%
• Return on Tangible Equity of 14.07%
• Total interest income up 2%
• Total interest expense down 5%
• Net interest income up 5%

Mr. Ivo A. Tjan, Chairman, President and CEO said, "We delivered solid results for the quarter highlighted by a return on assets of 1.19% and a return on tangible equity of 15.04%."  Mr. Tjan continued, "Our strong capital and liquidity position, combined with disciplined expense management and improving net interest income, position us well as we enter 2026. We believe the fundamentals of our franchise are strong, and we expect 2026 to be a year of solid growth and improved profitability. As always, I am grateful for the dedication of our talented CommerceWest Bank Team and their continued focus on serving our clients every day."  

Total assets decreased $8.9 million as of December 31, 2025, a decrease of 1% as compared to the same period one year ago. Total loans increased $2.5 million as of December 31, 2025, an increase of less than one percent from the prior year. Cash and due from banks increased $1.3 million from the prior year, an increase of less than one percent. Total investment securities decreased $9.7 million, a decrease of 6% from the prior year.

Total deposits decreased $18.4 million as of December 31, 2025, a decrease of 1% from December 31, 2024. Non-interest-bearing deposits decreased $19.8 million as of December 31, 2025, a decrease of 3% from the prior year. Interest bearing deposits increased $1.4 million as of December 31, 2025, an increase of less than one percent from the prior year.

Interest income was $13,879,000 for the three months ended December 31, 2025, as compared to $14,750,000 for the three months ended December 31, 2024, a decrease of 6%. Interest expense was $3,080,000 for the three months ended December 31, 2025, as compared to $3,714,000 for the three months ended December 31, 2024, a decrease of 17%.

Interest income was $55,274,000 for the twelve months ended December 31, 2025, as compared to $54,190,000 for the twelve months ended December 31, 2024, an increase of 2%. Interest expense was $13,512,000 for the twelve months ended December 31, 2025, as compared to $14,241,000 for the twelve months ended December 31, 2024, a decrease of 5%.

Net interest income for the three months ended December 31, 2025, was $10,799,000 as compared to $11,036,000 for the three months ended December 31, 2024, a decrease of 2%. The net interest margin decreased for the three months ended December 31, 2025. It decreased to 3.85% in 2025 from 3.86% in 2024. Net interest income for the twelve months ended December 31, 2025, was $41,762,000 as compared to $39,949,000 for the twelve months ended December 31, 2024, an increase of 5%. The net interest margin increased for the twelve months ended December 31, 2025. It increased to 3.86% in 2025 from 3.81% in 2024, an increase of 1%.

Provision for credit losses for the three months ended December 31, 2025, was zero compared to $25,000 for credit losses for the three months ended December 31, 2024. Provision for credit losses for the twelve months ended December 31, 2025, was $200,000 compared to $25,000 for the twelve months ended December 31, 2024.

Non-interest income for the three months ended December 31, 2025, was $1,198,000 compared to $2,011,000 for the same period last year, a decrease of 40%. Non-interest income for the twelve months ended December 31, 2025, was $4,954,000 compared to $6,166,000 for the same period last year, a decrease of 20%.

Non-interest expense for the three months ended December 31, 2025, was $7,145,000 compared to $7,617,000 for the same period last year, a decrease of 6%. Non-interest expense for the twelve months ended December 31, 2025, was $29,441,000 compared to $27,798,000 for the same period last year, an increase of 6%.

The efficiency ratio for the three months ended December 31, 2025, was 59.27% compared to 58.12% in 2024, which represents an increase of 2%. The efficiency ratio illustrates that for every dollar made for the three-month period ending December 31, 2025, it cost $0.5927 to make it, as compared to $0.5812 one year ago. The efficiency ratio for the twelve months ended December 31, 2025, was 60.64% compared to 59.97% in 2024, which represents an increase of 1%.

Capital ratios for the Bank remain above the levels required for a "well capitalized" institution as designated by regulatory agencies. As of December 31, 2025, the tier 1 leverage ratio was 12.50%, the common equity tier 1 capital ratio was 17.61%, the tier 1 risk-based capital ratio was 17.61% and the total risk-based capital ratio was 18.86%.

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, 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.

 

FOURTH QUARTER REPORT - December 31, 2025 (Unaudited)
CW BANCORP						%
CONSOLIDATED BALANCE SHEET						Increase
(dollars in thousands)		Dec 31, 2025		Dec 31, 2024		(Decrease)
ASSETS
Cash and due from banks		$                  504,627		$                  503,368		0 %
Securities available for sale		129,313		136,912		-6 %
Securities held-to-maturity		26,475		28,581		-7 %
Loans		795,550		793,075		0 %
Less allowance for credit losses (ACL)		(10,489)		(11,489)		-9 %
Loans, net		785,061		781,586		0 %
Bank premises and equipment, net		2,731		3,543		-23 %
Other assets		33,227		36,362		-9 %
Total assets		$               1,481,434		$               1,490,352		-1 %
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing deposits		$                  594,086		$                  613,877		-3 %
Interest bearing deposits		729,934		728,544		0 %
Total deposits		1,324,020		1,342,421		-1 %
Subordinated debenture		50,000		50,000		0 %
Other liabilities		12,490		13,345		-6 %
		1,386,510		1,405,766		-1 %
Stockholders' equity		94,924		84,586		12 %
Total liabilities and stockholders' equity		$               1,481,434		$               1,490,352		-1 %
Shares outstanding at end of period		2,925,102		2,990,223
Book value per share		$                      34.87		$                     31.69
Total loans to total deposits		60.09 %		59.08 %
ACL to total loans		1.32 %		1.45 %
Nonperforming assets (non-accrual loans & OREO)		$                      8,246		$                     6,381
COMMERCEWEST BANK CAPITAL RATIOS:
Tier 1 leverage ratio		12.50 %		11.16 %
Common equity tier 1 capital ratio		17.61 %		16.67 %
Tier 1 risk-based capital ratio		17.61 %		16.67 %
Total risk-based capital ratio		18.86 %		17.92 %

 

CW BANCORP
CONSOLIDATED STATEMENT OF INCOME (Unaudited)		Three Months Ended				Increase		For the Twelve Months Ended				Increase
(dollars in thousands except share and per share data)		Dec 31, 2025		Dec 31, 2024		(Decrease)		Dec 31, 2025		Dec 31, 2024		(Decrease)
INTEREST INCOME
Loans		$          10,930		$          10,856		1 %		$          44,596		$          40,690		10 %
Investments		1,244		1,315		-5 %		5,158		4,799		7 %
Fed funds sold and other		1,705		2,579		-34 %		5,520		8,701		-37 %
Total interest income		13,879		14,750		-6 %		55,274		54,190		2 %
INTEREST EXPENSE
Deposits		2,611		3,245		-20 %		11,637		12,366		-6 %
Subordinated debenture		469		469		0 %		1,875		1,875		0 %
Total interest expense		3,080		3,714		-17 %		13,512		14,241		-5 %
NET INTEREST INCOME BEFORE CREDIT LOSS PROVISION		10,799		11,036		-2 %		41,762		39,949		5 %
PROVISION FOR CREDIT LOSSES		-		25		-100 %		200		25		700 %
NET INTEREST INCOME AFTER CREDIT LOSS PROVISION		10,799		11,011		-2 %		41,562		39,924		4 %
NON-INTEREST INCOME
Service Charges and Fees on Deposits		933		1,698		-45 %		3,920		4,932		-21 %
Other Fees		265		313		-15 %		1,034		1,234		-16 %
NON-INTEREST EXPENSE		7,145		7,617		-6 %		29,441		27,798		6 %
EARNINGS BEFORE INCOME TAXES		4,852		5,405		-10 %		17,075		18,292		-7 %
INCOME TAXES		1,402		1,465		-4 %		4,829		5,144		-6 %
NET INCOME		$            3,450		$            3,940		-12 %		$          12,246		$          13,148		-7 %
Basic earnings per share		$1.18		$1.32		-10 %		$4.14		$4.34		-5 %
Diluted earnings per share		$1.17		$1.30		-10 %		$4.09		$4.30		-5 %
Return on Assets		1.19 %		1.31 %		-9 %		1.09 %		1.19 %		-8 %
Return on Equity		14.56 %		18.27 %		-20 %		13.59 %		16.06 %		-15 %
Return on Tangible Equity		15.04 %		18.95 %		-21 %		14.07 %		16.69 %		-16 %
Efficiency Ratio		59.27 %		58.12 %		2 %		60.64 %		59.97 %		1 %

 

CW BANCORP
CONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS
	Three Months Ended December 31,
	2025						2024
	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	$       158,578		$        1,565		3.92 %		$       203,392		$        2,439		4.77 %
Investment Securities (1)	158,350		1,301		3.26 %		167,544		1,373		3.26 %
Loans	795,285		10,930		5.45 %		766,581		10,856		5.63 %
FHLB & Other Stocks	7,100		140		7.82 %		7,100		140		7.84 %
Total interest-earning assets	1,119,313		13,936		4.94 %		1,144,617		14,808		5.15 %
Noninterest-earning assets	29,564						54,295
Total assets	$     1,148,877						$     1,198,912
INTEREST EARNING LIABILITIES
Interest Bearing Deposits	$       418,106		$        2,611		2.48 %		$       452,811		$        3,245		2.85 %
Subordinated Debenture	50,000		469		3.75 %		50,000		469		3.75 %
Total interest-earning liabilities	468,106		3,080		2.61 %		502,811		3,714		2.94 %
Noninterest-earning liabilities
Demand Deposits	574,112						595,705
Other Liabilities	12,608						14,620
Shareholders' Equity	94,051						85,776
Total liabilities and shareholder's equity	$     1,148,877						$     1,198,912
Net Interest Spread			$      10,856		2.33 %				$      11,094		2.21 %
Net Interest Margin					3.85 %						3.86 %
Total Deposits	$       992,218		$        2,611		1.04 %		$     1,048,516		$        3,245		1.23 %
Total Funding Costs	$     1,042,218		$        3,080		1.17 %		$     1,098,516		$        3,714		1.35 %
(1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate

 

CW BANCORP
CONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS
	Twelve Months Ended December 31,
	2025						2024
	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	$       116,565		$        4,964		4.26 %		$       155,785		$        8,136		5.22 %
Investment Securities (1)	160,577		5,392		3.36 %		160,619		5,037		3.14 %
Loans	802,712		44,596		5.56 %		732,500		40,690		5.55 %
FHLB & Other Stocks	7,100		556		7.83 %		7,100		565		7.96 %
Total interest-earning assets	1,086,954		55,508		5.11 %		1,056,004		54,428		5.15 %
Noninterest-earning assets	39,704						52,899
Total assets	$     1,126,658						$     1,108,903
INTEREST EARNING LIABILITIES
Interest Bearing Deposits	$       415,536		$      11,637		2.80 %		$       398,704		$      12,366		3.10 %
Subordinated Debenture	50,000		1,875		3.75 %		50,000		1,875		3.75 %
Total interest-earning liabilities	465,536		13,512		2.90 %		448,704		14,241		3.17 %
Noninterest-earning liabilities
Demand Deposits	558,350						564,223
Other Liabilities	12,667						14,130
Shareholders' Equity	90,105						81,846
Total liabilities and shareholder's equity	$     1,126,658						$     1,108,903
Net Interest Spread			$      41,996		2.21 %				$      40,187		1.98 %
Net Interest Margin					3.86 %						3.81 %
Total Deposits	$       973,886		$      11,637		1.19 %		$       962,927		$      12,366		1.28 %
Total Funding Costs	$     1,023,886		$      13,512		1.32 %		$     1,012,927		$      14,241		1.41 %
(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) Q4 2025 earnings and EPS?

CW Bancorp reported Q4 2025 net income of $3.45M and diluted EPS of $1.17. According to the company, this compares with Q4 2024 diluted EPS of $1.30, representing a 10% decline in EPS year‑over‑year.

How did CW Bancorp (CWBK) perform for full-year 2025 compared to 2024?

For full-year 2025 CW Bancorp reported net income of $12.246M and diluted EPS of $4.09. According to the company, EPS fell about 5% versus 2024, while net interest income increased 5% for the year.

What drove CW Bancorp's (CWBK) 2025 net interest and non-interest income trends?

Net interest income increased by 5% for 2025, supporting improved margin. According to the company, interest income rose 2% while interest expense fell 5%, but non-interest income declined 20%, weighing on overall revenues.

Are CW Bancorp's (CWBK) capital and liquidity levels adequate at year-end 2025?

Yes. As of December 31, 2025 the bank reported tier 1 leverage of 12.50% and total risk-based capital of 18.86%. According to the company, those ratios exceed regulatory "well capitalized" thresholds.