CW Bancorp Reports Second Quarter 2026 Financial Results

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Rhea-AI Summary

CW Bancorp (OTCQX: CWBK) reported second quarter 2026 net income of $3.13 million and diluted EPS of $1.06, up 2% and 4% year over year, respectively. For the first six months of 2026, net income was $6.63 million and diluted EPS $2.24, increases of 10% and 13%.

Net interest income rose 10% in Q2 and 9% year to date, while Q2 net interest margin was 3.83%. Non-interest income fell 24% in Q2 and non-interest expense increased 12%, lifting the quarterly efficiency ratio to 64.74%. Loans declined 4% year over year, but total deposits grew 2% and non-interest-bearing deposits rose 17%, representing 67% of total deposits. The allowance for credit losses equaled 1.32% of total loans, and the bank reported 66 consecutive profitable quarters. Capital ratios remained above "well capitalized" thresholds, including an 11.14% tier 1 leverage ratio and 17.71% total risk-based capital ratio, with no outstanding Federal Reserve Bank or Federal Home Loan Bank borrowings.

Positive

Diluted EPS up 4% in Q2 and 13% year to date
Net income up 10% for first six months to $6.63 million
Net interest income growth of 10% in Q2 and 9% year to date
Interest expense down 21% in Q2 and 13% year to date
Non-interest-bearing deposits up 17% year over year, now 67% of deposits
Regulatory capital ratios above well-capitalized levels, total risk-based capital 17.71%
Subordinated debenture balance reduced 30% to $35 million
66 consecutive profitable quarters reported by the bank

Negative

Total loans down 4% year over year to $779.6 million
Non-interest income down 24% in Q2 and 23% year to date
Non-interest expense up 12% in Q2, efficiency ratio worsened to 64.74%
Return on assets declined to 1.05% in Q2 from 1.12%
Return on equity declined to 12.79% in Q2 from 13.95%
Net interest margin for six months decreased from 3.84% to 3.79%
Nonperforming assets increased to $9.55 million from $8.58 million

AI-generated analysis. How Rhea-AI works. Not financial advice.

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07/30/2026 - 08:30 AM

IRVINE, Calif., July 30, 2026 /PRNewswire/ -- CW Bancorp (OTCQX: CWBK), the parent company ("the Company") of CommerceWest Bank (the "Bank") reported consolidated net income for the second quarter of 2026 of $3,133,000 or $1.06 per diluted share as compared to $3,082,000 or $1.02 per diluted share for the second quarter of 2025, an EPS increase of 4% and net income for the six months ended June 30, 2026 of $6,629,000 or $2.24 per diluted share as compared to $6,017,000 or $1.99 per diluted share for the six months ended June 30, 2025, an EPS increase of 13%.

Key Financial Results for the three months ended June 30, 2026:

EPS of $1.06 up 4%
Net interest income growth of 10%
ACL to total loans ratio of 1.32%
No outstanding FRB or FHLB borrowings
Non-interest-bearing deposits to total deposits of 67%
Leverage ratio of 11.14% and total risk-based capital ratio of 17.71%
66 quarters of consecutive profits

Key Financial Results for the six months ended June 30, 2026:

EPS of $2.24 up 13%
Net income of $6.6 million up 10%
Return on Assets of 1.11% up 2%
Return on Tangible Equity of 14.12%
Net interest income growth of 9%
Securities available for sale growth of 44%

Mr. Ivo Tjan, Chairman and CEO commented, "Our second quarter results demonstrated the continued strength and resilience of our relationship driven business model. We delivered diluted earnings per share of $1.06, up 4% from a year ago, while growing net interest income by 10%, and achieving our 66^th consecutive quarter of profitability. During the quarter, we further strengthened our balance sheet through disciplined asset and liability management, growing non-interest-bearing deposits by 17% year over year, enhancing the quality of our funding base, and maintaining a well-capitalized position with no outstanding Federal Reserve Bank or Federal Home Loan Bank borrowings. As we navigate an evolving economic environment, we remain committed to disciplined credit management, operational excellence, prudent capital allocation, and building long term value for our clients, shareholders, and employees."

Total assets increased $16.4 million as of June 30, 2026, an increase of 1% as compared to the same period one year ago. Total loans decreased $31.5 million as of June 30, 2026, a decrease of 4% from the prior year. The Bank remains prudent and conservative about credit quality. Cash and due from banks decreased $6.1 million or 3% over the prior year. Total investment securities increased $56.7 million, an increase of 36% from the prior year.

Total deposits increased $22.8 million as of June 30, 2026, an increase of 2% from June 30, 2025. Non-interest-bearing deposits increased $100.4 million as of June 30, 2026, an increase of 17% from the prior year. Interest bearing deposits decreased $77.6 million as of June 30, 2026, a decrease of 18% over the prior year. Subordinated debt decreased $15.0 million as of June 30, 2026 as compared to the previous year as the Company made a partial repayment when $32.5 million of the outstanding debt converted from a fixed interest rate to a floating interest rate on April 1, 2026.

Interest income was $13,914,000 for the three months ended June 30, 2026, as compared to $13,671,000 for the three months ended June 30, 2025, an increase of 2%. Interest expense was $2,851,000 for the three months ended June 30, 2026, as compared to $3,589,000 for the three months ended June 30, 2025, a decrease of 21%.

Interest income was $27,907,000 for the six months ended June 30, 2026, as compared to $27,108,000 for the six months ended June 30, 2025, an increase of 3%. Interest expense was $6,044,000 for the six months ended June 30, 2026, as compared to $6,982,000 for the six months ended June 30, 2025, a decrease of 13%.

Net interest income for the three months ended June 30, 2026, was $11,063,000 as compared to $10,082,000 for the three months ended June 30, 2025, an increase of 10%. The net interest margin was 3.83% for the three months ended June 30, 2026, as compared to 3.82% in 2025. Net interest income for the six months ended June 30, 2026, was $21,863,000 as compared to $20,126,000 for the six months ended June 30, 2025, an increase of 9%. The net interest margin decreased for the six months ended June 30, 2026. It decreased from 3.84% in 2025 to 3.79% in 2026, a decrease of 1%.

The provision for credit losses for the three months ended June 30, 2026, reflected a reduction in the reserve of $150,000 compared to provision expense of $100,000 for the three months ended June 30, 2025. The provision for credit losses for the six months ended June 30, 2026, reflected a reduction in the reserve of $100,000 compared to provision expense of $100,000 for the six months ended June 30, 2025.

Non-interest income for the three months ended June 30, 2026, was $1,014,000 compared to $1,335,000 for the same period last year, a decrease of 24%. Non-interest income for the six months ended June 30, 2026, was $1,985,000 compared to $2,580,000 for the same period last year, a decrease of 23%.

Non-interest expense for the three months ended June 30, 2026, was $7,847,000 compared to $6,987,000 for the same period last year, an increase of 12%. Capitalized debt issuance costs, related to the repayment of the $15.0 million in subordinated debt, of $137,000 were expensed in the second quarter. Non-interest expense for the six months ended June 30, 2026, was $14,754,000 compared to $14,161,000 for the same period last year, an increase of 4%.

The efficiency ratio for the three months ended June 30, 2026, was 64.74% compared to 61.34% in 2025, which represents an increase of 6%. The efficiency ratio illustrates that for every dollar made for the three-month period ending June 30, 2026, it cost $0.6474 to make it, as compared to $0.6134 one year ago. The efficiency ratio for the six months ended June 30, 2026, was 61.60% compared to 62.28% in 2025, which represents a decrease of 1%.

Capital ratios for the Bank remain above the levels required for a "well capitalized" institution as designated by regulatory agencies. As of June 30, 2026, the tier 1 leverage ratio was 11.14%, the common equity tier 1 capital ratio was 16.46%, the tier 1 risk-based capital ratio was 16.46% and the total risk-based capital ratio was 17.71%.

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.

SECOND QUARTER REPORT - JUNE 30, 2026 (Unaudited)

CW BANCORP			%
CONSOLIDATED BALANCE SHEET			Increase
(dollars in thousands)	June 30, 2026	June 30, 2025	(Decrease)

ASSETS
Cash and due from banks	$ 176,571	$ 182,673	-3 %
Securities available for sale	190,280	132,206	44 %
Securities held-to-maturity	25,127	26,528	-5 %

Loans	779,614	811,093	-4 %
Less allowance for credit losses (ACL)	(10,253)	(11,444)	-10 %
Loans, net	769,361	799,649	-4 %

Bank premises and equipment, net	2,261	3,102	-27 %
Other assets	34,438	37,527	-8 %
Total assets	$ 1,198,038	$ 1,181,685	1 %

LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing deposits	$ 702,506	$ 602,080	17 %
Interest bearing deposits	349,926	427,558	-18 %
Total deposits	1,052,432	1,029,638	2 %

Subordinated debenture	35,000	50,000	-30 %
Other liabilities	11,267	12,622	-11 %
	1,098,699	1,092,260	1 %
Stockholders' equity	99,339	89,425	11 %
Total liabilities and stockholders' equity	$ 1,198,038	$ 1,181,685	1 %

Shares outstanding at end of period	2,928,302	2,971,252
Book value per share	$ 36.57	$ 33.29
Total loans to total deposits	74.08 %	78.77 %
ACL to total loans	1.32 %	1.41 %
Nonperforming assets (non-accrual loans & OREO)	$ 9,551	$ 8,579

COMMERCEWEST BANK CAPITAL RATIOS:
Tier 1 leverage ratio	11.14 %	12.68 %
Common equity tier 1 capital ratio	16.46 %	16.83 %
Tier 1 risk-based capital ratio	16.46 %	16.83 %
Total risk-based capital ratio	17.71 %	18.08 %

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, 2026	June 30, 2025	(Decrease)	June 30, 2026	June 30, 2025	(Decrease)

INTEREST INCOME
Loans	$ 10,455	$ 11,193	-7 %	$ 20,875	$ 22,174	-6 %
Investments	1,919	1,303	47 %	3,265	2,641	24 %
Fed funds sold and other	1,540	1,175	31 %	3,767	2,293	64 %
Total interest income	13,914	13,671	2 %	27,907	27,108	3 %

INTEREST EXPENSE
Deposits	2,265	3,120	-27 %	4,989	6,044	-17 %
Subordinated debenture	586	469	25 %	1,055	938	12 %
Total interest expense	2,851	3,589	-21 %	6,044	6,982	-13 %

NET INTEREST INCOME BEFORE CREDIT LOSS PROVISION	11,063	10,082	10 %	21,863	20,126	9 %

PROVISION FOR CREDIT LOSSES	(150)	100	-250 %	(100)	100	-200 %
Non-interest income:

NET INTEREST INCOME AFTER CREDIT LOSS PROVISION	11,213	9,982	12 %	21,963	20,026	10 %

NON-INTEREST INCOME
Service Charges and Fees on Deposits	749	1,025	-27 %	1,448	2,054	-30 %
Other Fees	265	310	-15 %	537	526	2 %

NON-INTEREST EXPENSE	7,847	6,987	12 %	14,754	14,161	4 %

EARNINGS BEFORE INCOME TAXES	4,380	4,330	1 %	9,194	8,445	9 %

INCOME TAXES	1,247	1,248	0 %	2,565	2,428	6 %


NET INCOME	$ 3,133	$ 3,082	2 %	$ 6,629	$ 6,017	10 %

Basic earnings per share	$ 1.07	$ 1.04	3 %	$ 2.26	$ 2.02	12 %
Diluted earnings per share	$ 1.06	$ 1.02	4 %	$ 2.24	$ 1.99	13 %
Return on Assets	1.05 %	1.12 %	-6 %	1.11 %	1.09 %	2 %
Return on Equity	12.79 %	13.95 %	-8 %	13.68 %	13.81 %	-1 %
Return on Tangible Equity	13.20 %	14.45 %	-9 %	14.12 %	14.31 %	-1 %
Efficiency Ratio	64.74 %	61.34 %	6 %	61.60 %	62.28 %	-1 %

CW BANCORP
CONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS

	Three Months Ended June 30,
	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	$ 163,025	$ 1,503	3.70 %	$ 93,499	$ 1,036	4.44 %
Investment Securities (1)	214,214	2,009	3.76 %	160,551	1,362	3.40 %
Loans	782,174	10,455	5.36 %	803,447	11,193	5.59 %
FHLB & Other Stocks	7,100	37	2.09 %	7,100	139	7.85 %
Total interest-earning assets	1,166,513	14,004	4.82 %	1,064,597	13,730	5.17 %

Noninterest-earning assets	30,152			42,328
Total assets	$ 1,196,665			$ 1,106,925


INTEREST EARNING LIABILITIES
Interest Bearing Deposits	$ 376,874	$ 2,265	2.41 %	$ 414,780	$ 3,120	3.02 %
Other Borrowings	1	-	3.93 %	1	-	4.96 %
Subordinated Debenture	42,088	586	5.57 %	50,000	469	3.75 %
Total interest-earning liabilities	418,963	2,851	2.73 %	464,781	3,589	3.10 %

Noninterest-earning liabilities
Demand Deposits	665,833			541,198
Other Liabilities	13,650			12,361
Shareholders' Equity	98,219			88,585
Total liabilities and shareholder's equity	$ 1,196,665			$ 1,106,925

Net Interest Spread		$ 11,153	2.09 %		$ 10,141	2.07 %
Net Interest Margin			3.83 %			3.82 %

Total Deposits	$ 1,042,707	$ 2,265	0.87 %	$ 955,978	$ 3,120	1.31 %
Total Funding Costs	$ 1,084,796	$ 2,851	1.05 %	$ 1,005,979	$ 3,589	1.43 %

(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,
	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	$ 187,662	$ 3,441	3.70 %	$ 91,520	$ 2,017	4.44 %
Investment Securities (1)	192,186	3,414	3.58 %	163,004	2,759	3.41 %
Loans	783,408	20,875	5.37 %	800,170	22,174	5.59 %
FHLB & Other Stocks	7,100	326	9.26 %	7,100	276	7.84 %
Total interest-earning assets	1,170,356	28,056	4.83 %	1,061,794	27,226	5.17 %

Noninterest-earning assets	30,386			46,447
Total assets	$ 1,200,742			$ 1,108,241


INTEREST EARNING LIABILITIES
Interest Bearing Deposits	$ 417,188	$ 4,989	2.41 %	$ 412,224	$ 6,044	2.96 %
Other Borrowings	1	-	3.63 %	1	-	4.96 %
Subordinated Debenture	46,022	1,055	4.58 %	50,000	938	3.75 %
Total interest-earning liabilities	463,211	6,044	2.63 %	462,225	6,982	3.05 %

Noninterest-earning liabilities
Demand Deposits	625,699			545,561
Other Liabilities	14,090			12,591
Shareholders' Equity	97,742			87,864
Total liabilities and shareholder's equity	$ 1,200,742			$ 1,108,241

Net Interest Spread		$ 22,012	2.20 %		$ 20,244	2.12 %
Net Interest Margin			3.79 %			3.84 %

Total Deposits	$ 1,042,887	$ 4,989	0.96 %	$ 957,785	$ 6,044	1.27 %
Total Funding Costs	$ 1,088,910	$ 6,044	1.12 %	$ 1,007,786	$ 6,982	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

How did CW Bancorp (OTCQX: CWBK) perform in Q2 2026?

CW Bancorp reported Q2 2026 net income of $3.13 million and diluted EPS of $1.06, up 2% and 4% year over year. According to CW Bancorp, net interest income grew 10%, and the quarter marked its 66th consecutive period of profitability.

What were CW Bancorp's key earnings metrics for the first half of 2026 (CWBK)?

For the six months ended June 30, 2026, CW Bancorp reported net income of $6.63 million and diluted EPS of $2.24, increases of 10% and 13%. According to CW Bancorp, return on assets was 1.11% and return on tangible equity was 14.12% for the period.

How did CW Bancorp's net interest margin and net interest income change in Q2 2026?

In Q2 2026, CW Bancorp's net interest margin was 3.83%, slightly above 3.82% a year earlier, while net interest income rose 10% to $11.06 million. According to CW Bancorp, interest expense declined 21%, supporting overall net interest income growth.

What trends did CW Bancorp report in loans and deposits as of June 30, 2026?

As of June 30, 2026, CW Bancorp’s total loans declined 4% year over year to $779.6 million, while total deposits increased 2% to $1.05 billion. According to CW Bancorp, non-interest-bearing deposits grew 17% and represented 67% of total deposits.

Are CW Bancorp's capital ratios considered strong after Q2 2026?

CW Bancorp reported bank capital ratios above regulatory "well capitalized" thresholds at June 30, 2026, including an 11.14% tier 1 leverage ratio and 17.71% total risk-based capital ratio. According to CW Bancorp, the bank had no outstanding Federal Reserve Bank or FHLB borrowings.

How did non-interest income and expenses impact CW Bancorp in Q2 2026?

In Q2 2026, CW Bancorp’s non-interest income fell 24% year over year to $1.01 million, mainly from lower service charges and fees. According to CW Bancorp, non-interest expense increased 12% to $7.85 million, raising the quarterly efficiency ratio to 64.74%.

What is CW Bancorp's asset quality and allowance for credit losses as of Q2 2026?

At June 30, 2026, CW Bancorp reported an allowance for credit losses of $10.25 million, equal to 1.32% of total loans. According to CW Bancorp, nonperforming assets were $9.55 million, and Q2 included a $150,000 reserve reduction in the credit loss provision.