CW Bancorp Reports Second Quarter 2025 Financial Results
Rhea-AI Summary
CW Bancorp (OTCQX: CWBK) reported solid Q2 2025 financial results with net income of $3.1 million or $1.02 per diluted share, showing a 2% EPS increase year-over-year. The bank demonstrated strong growth with total loans up 13% to $811.1 million and deposits increasing 4% to $1.03 billion compared to Q2 2024.
Key performance metrics include a net interest margin of 3.82%, ROA of 1.12%, and ROE of 13.95%. The bank maintains a strong capital position with a total risk-based capital ratio of 18.08% and tier 1 leverage ratio of 12.68%. Non-interest-bearing deposits represent 58% of total deposits, reflecting a stable funding base.
The bank's efficiency ratio increased slightly to 61.34% from 60.28% year-over-year, while maintaining its streak of 62 consecutive profitable quarters.
Positive
- 13% year-over-year loan growth to $811.1 million
- 4% deposit growth to $1.03 billion
- Strong capital ratios with total risk-based capital at 18.08%
- 58% of deposits are non-interest-bearing
- Net interest income increased 3% year-over-year
- 62 consecutive quarters of profitability
- No outstanding FRB or FHLB borrowings
Negative
- Efficiency ratio increased to 61.34% from 60.28%
- ROE declined to 13.95% from 16.10% year-over-year
- Non-performing assets increased to $8.58 million from $4.75 million year-over-year
- Net income remained flat at $3.08 million year-over-year
News Market Reaction – CWBK
On the day this news was published, CWBK gained 2.13%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Financial Results for the three months ended June 30, 2025:
- EPS of
$1.02 - Return on Assets of
1.12% - Return on Tangible Equity of
14.45% - Net interest income growth of
3% - ACL to total loans ratio of
1.41% - No outstanding FRB or FHLB borrowings
- Non-interest-bearing deposits to total deposits of
58% - Strong leverage ratio of
12.68% and total risk-based capital ratio of18.08% - 62 quarters of consecutive profits
Key Financial Results for the six months ended June 30, 2025:
- EPS of
$1.99 - Return on Assets of
1.09% - Return on Tangible Equity of
14.31% - Net interest income growth of
6% 13% loan growth year over year4% deposit growth year over year5% total asset growth year over year
Mr. Ivo Tjan, Chairman and CEO commented, "The Bank reported a solid quarterly result, including double digit loan growth of
Total assets increased
Total assets increased
Total deposits increased
Interest income was
Interest income was
Net interest income for the three months ended June 30, 2025, was
Provision for credit losses for the three months ended June 30, 2025, was
Non-interest income for the three months ended June 30, 2025, was
Non-interest expense for the three months ended June 30, 2025, was
The efficiency ratio for the three months ended June 30, 2025, was
Capital ratios for the Bank remain above the levels required for a "well capitalized" institution as designated by regulatory agencies. As of June 30, 2025, the tier 1 leverage ratio was
CommerceWest Bank is determined to redefine banking for small and medium sized businesses by delivering on customized products and services. Founded in 2001 and headquartered in
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
SECOND QUARTER REPORT - JUNE 30, 2025 (Unaudited) | ||||||||
CW BANCORP | % | |||||||
CONSOLIDATED BALANCE SHEET | Increase | |||||||
(dollars in thousands) | June 30, 2025 | June 30, 2024 | (Decrease) | |||||
ASSETS | ||||||||
Cash and due from banks | $ 182,673 | $ 228,574 | -20 % | |||||
Securities available for sale | 132,206 | 121,232 | 9 % | |||||
Securities held-to-maturity | 26,528 | 35,037 | -24 % | |||||
Loans | 811,093 | 716,953 | 13 % | |||||
Less allowance for credit losses (ACL) | (11,444) | (11,489) | 0 % | |||||
Loans, net | 799,649 | 705,464 | 13 % | |||||
Bank premises and equipment, net | 3,102 | 3,984 | -22 % | |||||
Other assets | 37,527 | 36,234 | 4 % | |||||
Total assets | $ 1,181,685 | $ 1,130,525 | 5 % | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Non-interest bearing deposits | $ 602,080 | $ 582,750 | 3 % | |||||
Interest bearing deposits | 427,558 | 404,226 | 6 % | |||||
Total deposits | 1,029,638 | 986,976 | 4 % | |||||
Subordinated debenture | 50,000 | 50,000 | 0 % | |||||
Other liabilities | 12,622 | 13,342 | -5 % | |||||
1,092,260 | 1,050,318 | 4 % | ||||||
Stockholders' equity | 89,425 | 80,207 | 11 % | |||||
Total liabilities and stockholders' equity | $ 1,181,685 | $ 1,130,525 | 5 % | |||||
Shares outstanding at end of period | 2,971,252 | 3,012,375 | ||||||
Book value per share | $ 33.29 | $ 29.92 | ||||||
Total loans to total deposits | 78.77 % | 72.64 % | ||||||
ACL to total loans | 1.41 % | 1.60 % | ||||||
Nonperforming assets (non-accrual loans & OREO) | $ 8,579 | $ 4,746 | ||||||
COMMERCEWEST BANK CAPITAL RATIOS: | ||||||||
Tier 1 leverage ratio | 12.68 % | 12.06 % | ||||||
Common equity tier 1 capital ratio | 16.83 % | 18.41 % | ||||||
Tier 1 risk-based capital ratio | 16.83 % | 18.41 % | ||||||
Total risk-based capital ratio | 18.08 % | 19.67 % | ||||||
CW BANCORP | |||||||||||||
CONSOLIDATED STATEMENT OF INCOME (Unaudited) | Three Months Ended | Increase | For the Six Months Ended | Increase | |||||||||
(dollars in thousands except share and per share data) | June 30, 2025 | June 30, 2024 | (Decrease) | June 30, 2025 | June 30, 2024 | (Decrease) | |||||||
INTEREST INCOME | |||||||||||||
Loans | $ 11,193 | $ 9,981 | 12 % | $ 22,174 | $ 19,790 | 12 % | |||||||
Investments | 1,303 | 1,175 | 11 % | 2,641 | 2,292 | 15 % | |||||||
Fed funds sold and other | 1,175 | 2,188 | -46 % | 2,293 | 3,503 | -35 % | |||||||
Total interest income | 13,671 | 13,344 | 2 % | 27,108 | 25,585 | 6 % | |||||||
INTEREST EXPENSE | |||||||||||||
Deposits | 3,120 | 3,104 | 1 % | 6,044 | 5,749 | 5 % | |||||||
Subordinated debenture | 469 | 469 | 0 % | 938 | 938 | 0 % | |||||||
Total interest expense | 3,589 | 3,573 | 0 % | 6,982 | 6,687 | 4 % | |||||||
NET INTEREST INCOME BEFORE CREDIT LOSS PROVISION | 10,082 | 9,771 | 3 % | 20,126 | 18,898 | 6 % | |||||||
PROVISION FOR CREDIT LOSSES | 100 | - | - | 100 | - | - | |||||||
Non-interest income: | |||||||||||||
NET INTEREST INCOME AFTER CREDIT LOSS PROVISION | 9,982 | 9,771 | 2 % | 20,026 | 18,898 | 6 % | |||||||
NON-INTEREST INCOME | |||||||||||||
Service Charges and Fees on Deposits | 1,025 | 927 | 11 % | 2,054 | 1,832 | 12 % | |||||||
Other Fees | 310 | 292 | 6 % | 526 | 595 | -12 % | |||||||
NON-INTEREST EXPENSE | 6,987 | 6,661 | 5 % | 14,161 | 12,837 | 10 % | |||||||
EARNINGS BEFORE INCOME TAXES | 4,330 | 4,329 | 0 % | 8,445 | 8,488 | -1 % | |||||||
INCOME TAXES | 1,248 | 1,245 | 0 % | 2,428 | 2,411 | 1 % | |||||||
NET INCOME | $ 3,082 | $ 3,084 | 0 % | $ 6,017 | $ 6,077 | -1 % | |||||||
Basic earnings per share | $ 1.04 | $ 1.02 | 2 % | $ 2.02 | $ 1.99 | 2 % | |||||||
Diluted earnings per share | $ 1.02 | $ 1.00 | 2 % | $ 1.99 | $ 1.96 | 2 % | |||||||
Return on Assets | 1.12 % | 1.14 % | -2 % | 1.09 % | 1.16 % | -6 % | |||||||
Return on Equity | 13.95 % | 16.10 % | -13 % | 13.81 % | 15.80 % | -13 % | |||||||
Return on Tangible Equity | 14.45 % | 16.77 % | -14 % | 14.31 % | 16.45 % | -13 % | |||||||
Efficiency Ratio | 61.34 % | 60.28 % | 2 % | 62.28 % | 59.86 % | 4 % | |||||||
CW BANCORP | |||||||||||
CONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS | |||||||||||
Three Months Ended June 30, | |||||||||||
2025 | 2024 | ||||||||||
Average | Interest | Yield / | Average | Interest | Yield / | ||||||
(dollars in thousands) | |||||||||||
INTEREST EARNING ASSETS | |||||||||||
Int Bearing Due from Banks & FFS | $ 93,499 | $ 1,036 | 4.44 % | $ 150,396 | $ 2,049 | 5.48 % | |||||
Investment Securities (1) | 160,551 | 1,362 | 3.40 % | 156,862 | 1,235 | 3.17 % | |||||
Loans | 803,447 | 11,193 | 5.59 % | 721,573 | 9,981 | 5.56 % | |||||
FHLB & Other Stocks | 7,100 | 139 | 7.85 % | 7,100 | 139 | 7.87 % | |||||
Total interest-earning assets | 1,064,597 | 13,730 | 5.17 % | 1,035,931 | 13,404 | 5.20 % | |||||
Noninterest-earning assets | 42,328 | 48,448 | |||||||||
Total assets | $ 1,106,925 | $ 1,084,379 | |||||||||
INTEREST EARNING LIABILITIES | |||||||||||
Interest Bearing Deposits | $ 414,780 | $ 3,120 | 3.02 % | $ 380,310 | $ 3,104 | 3.28 % | |||||
Other Borrowings | 1 | - | 4.96 % | 1 | - | 5.66 % | |||||
Subordinated Debenture | 50,000 | 469 | 3.75 % | 50,000 | 469 | 3.75 % | |||||
Total interest-earning liabilities | 464,781 | 3,589 | 3.10 % | 430,311 | 3,573 | 3.34 % | |||||
Noninterest-earning liabilities | |||||||||||
Demand Deposits | 541,198 | 563,105 | |||||||||
Other Liabilities | 12,361 | 13,933 | |||||||||
Shareholders' Equity | 88,585 | 77,030 | |||||||||
Total liabilities and shareholder's equity | $ 1,106,925 | $ 1,084,379 | |||||||||
Net Interest Spread | $ 10,141 | 2.07 % | $ 9,831 | 1.86 % | |||||||
Net Interest Margin | 3.82 % | 3.82 % | |||||||||
Total Deposits | $ 955,978 | $ 3,120 | 1.31 % | $ 943,415 | $ 3,104 | 1.32 % | |||||
Total Funding Costs | $ 1,005,979 | $ 3,589 | 1.43 % | $ 993,416 | $ 3,573 | 1.45 % | |||||
(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 | |||||||||||
Six Months Ended June 30, | |||||||||||
2025 | 2024 | ||||||||||
Average | Interest | Yield / | Average | Interest | Yield / | ||||||
(dollars in thousands) | |||||||||||
INTEREST EARNING ASSETS | |||||||||||
Int Bearing Due from Banks & FFS | $ 91,520 | $ 2,017 | 4.44 % | $ 118,279 | $ 3,217 | 5.47 % | |||||
Investment Securities (1) | 163,004 | 2,759 | 3.41 % | 158,629 | 2,412 | 3.06 % | |||||
Loans | 800,170 | 22,174 | 5.59 % | 721,422 | 19,790 | 5.52 % | |||||
FHLB & Other Stocks | 7,100 | 276 | 7.84 % | 7,100 | 286 | 8.10 % | |||||
Total interest-earning assets | 1,061,794 | 27,226 | 5.17 % | 1,005,430 | 25,705 | 5.14 % | |||||
Noninterest-earning assets | 46,447 | 47,792 | |||||||||
Total assets | $ 1,108,241 | $ 1,053,222 | |||||||||
INTEREST EARNING LIABILITIES | |||||||||||
Interest Bearing Deposits | $ 412,224 | $ 6,044 | 2.96 % | $ 359,520 | $ 5,749 | 3.22 % | |||||
Other Borrowings | 1 | - | 4.96 % | 1 | - | 5.66 % | |||||
Subordinated Debenture | 50,000 | 938 | 3.75 % | 50,000 | 938 | 3.75 % | |||||
Total interest-earning liabilities | 462,225 | 6,982 | 3.05 % | 409,521 | 6,687 | 3.28 % | |||||
Noninterest-earning liabilities | |||||||||||
Demand Deposits | 545,561 | 552,319 | |||||||||
Other Liabilities | 12,591 | 14,021 | |||||||||
Shareholders' Equity | 87,864 | 77,361 | |||||||||
Total liabilities and shareholder's equity | $ 1,108,241 | $ 1,053,222 | |||||||||
Net Interest Spread | $ 20,244 | 2.12 % | $ 19,018 | 1.86 % | |||||||
Net Interest Margin | 3.84 % | 3.80 % | |||||||||
Total Deposits | $ 957,785 | $ 6,044 | 1.27 % | $ 911,839 | $ 5,749 | 1.27 % | |||||
Total Funding Costs | $ 1,007,786 | $ 6,982 | 1.40 % | $ 961,840 | $ 6,687 | 1.40 % | |||||
(1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate | |||||||||||
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SOURCE CW Bancorp
FAQ
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