CW Bancorp Reports Third Quarter 2026 Financial Results

Lower interest and operating expenses accompanied higher earnings, while loans and deposits contracted and nonperforming assets increased.

Rhea-AI Summary

CW Bancorp (OTCQX: CWBK) reported third-quarter 2026 net income of $3.287 million, extending its profitable streak to 67 consecutive quarters. Diluted earnings per share rose 19% year over year to $1.11, while net income increased 18%. Nine-month net income rose 13% to $9.916 million, with diluted earnings per share up 14% to $3.35.

Quarterly net interest income was $10.862 million versus $10.837 million a year earlier, as interest expense fell 22%. Net interest margin widened to 3.97% from 3.87%. Non-interest income fell 18%, while non-interest expense declined 9%. At September 30, assets were $1.076 billion, down 4%; loans fell 5% and deposits fell 4% year over year. Nonperforming assets increased to $13.415 million from $8.560 million. Bank capital remained above regulatory well-capitalized thresholds, although capital ratios declined. The company is investing in its sales team to pursue commercial loans and core deposits.

22 points · 0 major

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0 major · 14 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter net income rose 18% to $3.287 million year over year, marking 67 consecutive profitable quarters.
• Moderate pointNine-month net interest income increased 6% to $32.725 million from $30.964 million in 2025.
• Moderate pointInterest expense fell 22% to $2.681 million quarterly and 16% to $8.725 million year to date.
• Moderate pointNon-interest expense declined 9% to $7.363 million quarterly and 1% to $22.117 million year to date.
• Moderate pointNon-interest-bearing deposits grew 6% to $598.524 million year over year at September 30.
• Moderate pointSubordinated debenture balance declined 31% to $34.591 million year over year at September 30.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Partial note redemption was planned for $10 million on October 19, 2026, leaving $7.5 million outstanding. 8.3% of market cap

15 minor points

• Minor pointThird-quarter diluted earnings per share increased 19% to $1.11 from $0.93 a year earlier.
• Minor pointNine-month net income increased 13% to $9.916 million from $8.795 million in 2025.
• Minor pointNine-month diluted earnings per share rose 14% to $3.35 from $2.93 in 2025.
• Minor pointThird-quarter net interest income reached $10.862 million, versus $10.837 million a year earlier.
• Minor pointNet interest margin widened to 3.97% from 3.87% quarterly and 3.83% from 3.82% year to date.
• Minor pointQuarterly credit-loss provision fell to zero from $100,000 a year earlier.
• Minor pointNine-month credit-loss provision reflected a $100,000 reserve reduction, versus a $200,000 addition in 2025.
• Minor pointReturn on assets improved to 1.17% from 0.97% quarterly and 1.13% from 1.05% year to date.
• Minor pointReturn on equity rose to 13.18% from 12.17% quarterly and 13.51% from 13.25% year to date.
• Minor pointReturn on tangible equity rose to 13.60% from 12.60% quarterly and 13.94% from 13.72% year to date.
• Minor pointStockholders' equity increased 1% to $92.775 million year over year at September 30.
• Minor pointBook value per share reached $37.43, compared with $33.89 a year earlier.
• Minor pointBank capital remained above regulatory well-capitalized thresholds at September 30.
• Minor pointOutstanding Federal Reserve Bank and Federal Home Loan Bank borrowings were zero.
• Minor point. Forward-looking: it has not happened yet and may not happen.Sales-team investment aims to expand commercial loans and core deposits.

Negative

• Moderate pointNonperforming assets increased to $13.415 million from $8.560 million a year earlier.
• Moderate pointLoans decreased 5% to $768.100 million year over year at September 30.
• Moderate pointTotal deposits decreased 4% to $937.312 million year over year at September 30.
• Moderate pointCash and due from banks fell 34% to $87.274 million year over year at September 30.
• Moderate pointNon-interest income fell 18% to $968,000 quarterly and 21% to $2.953 million year to date.
• Moderate pointQuarterly efficiency ratio worsened to 62.07% from 58.90%, indicating higher expense per dollar earned.
• Moderate pointCommon equity tier 1 and tier 1 risk-based ratios each declined to 14.77% from 16.68%.

7 minor points

• Minor pointInterest-bearing deposits declined 17% to $338.788 million year over year at September 30.
• Minor pointTotal assets decreased 4% to $1.076 billion year over year at September 30.
• Minor pointThird-quarter interest income declined 5% to $13.543 million from $14.287 million a year earlier.
• Minor pointNine-month efficiency ratio worsened to 61.76% from 61.11% in 2025.
• Minor pointCredit-loss allowance relative to loans declined to 1.34% from 1.37% a year earlier.
• Minor pointBank leverage ratio declined to 10.56% from 12.22% a year earlier.
• Minor pointBank total risk-based capital ratio declined to 16.02% from 17.93% a year earlier.

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IRVINE, Calif., Oct. 30, 2026 /PRNewswire/ -- CW Bancorp (OTCQX: CWBK), the parent company ("the Company") of CommerceWest Bank (the "Bank") reported consolidated net income for the third quarter of 2026 of $3,287,000 or $1.11 per diluted share as compared to $2,778,000 or $0.93  per diluted share for the third quarter of 2025, an EPS increase of 19%, and net income for the nine months ended September 30, 2026 of $9,916,000 or $3.35 per diluted share as compared to $8,795,000 or $2.93 per diluted share for the nine months ended September 30, 2025, an EPS increase of 14%.  

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

• EPS of $1.11, an increase of 19%
• Return on Assets of 1.17%, an increase of 21%
• Return on Tangible Equity of 13.60%, an increase of 8%
• Net Income growth of 18%
• ACL to total loans ratio of 1.34%
• No outstanding FRB or FHLB borrowings
• Leverage ratio of 10.56% and total risk-based capital ratio of 16.02%
• 67 quarters of consecutive profits

Key Financial Results for the nine months ended September 30, 2026:

• EPS of $3.35, an increase of 15%
• Return on Assets of 1.13%, an increase of 8%
• Return on Tangible Equity of 13.94%
• Net interest income growth of 6%
• Net income growth of 13%

Mr. Ivo Tjan, Chairman, President and CEO, "Our third quarter results demonstrate the strength and resilience of CommerceWest Bank's unique business model and our continued commitment to disciplined financial management. We generated net income of $3.3 million, representing a 19% increase in earnings per share compared to the prior year, and achieved our 67th consecutive profitable quarter. Our strong earnings performance, prudent expense management, and disciplined approach to credit quality contributed to a return on assets of 1.17% and a return on tangible equity of 13.60%."

Mr. Tjan added, "We see attractive opportunities to expand our commercial banking franchise and are strategically investing in our sales team to accelerate the acquisition of high-quality commercial loans and core deposits. Our strong capital position, liquidity, and well-positioned balance sheet provide a solid foundation to support future growth while maintaining our commitment to prudent risk management. As we look ahead, we remain focused on expanding client relationships, leveraging our digital-first banking model, and delivering sustainable long-term value to our shareholders."

Total assets decreased $49.7 million as of September 30, 2026, a decrease of 4% as compared to the same period one year ago. Total loans decreased $40.7 million as of September 30, 2026, a decrease of 5% from the prior year. The Bank remains prudent and conservative about credit quality. Cash and due from banks decreased $44.5 million or 34% over the prior year. Total investment securities increased $33.1 million, an increase of 21% from the prior year.

Total deposits decreased $34.2 million as of September 30, 2026, a decrease of 4% from September 30, 2025. Non-interest-bearing deposits increased $34.4 million as of September 30, 2026, an increase of 6% from the prior year. Interest bearing deposits decreased $68.7 million as of September 30, 2026, a decrease of 17% over the prior year.  

Interest income was $13,543,000 for the three months ended September 30, 2026, as compared to $14,287,000 for the three months ended September 30, 2025, a decrease of 5%. Interest expense was $2,681,000 for the three months ended September 30, 2026, as compared to $3,450,000 for the three months ended September 30, 2025, a decrease of 22%.

Interest income was $41,450,000 for the nine months ended September 30, 2026, as compared to $41,396,000 for the nine months ended September 30, 2025, an increase of less than one percent. Interest expense was $8,725,000 for the nine months ended September 30, 2026, as compared to $10,432,000 for the nine months ended September 30, 2025, a decrease of 16%.

Net interest income for the three months ended September 30, 2026, was $10,862,000 as compared to $10,837,000 for the three months ended September 30, 2025, an increase of less than one percent. The net interest margin was 3.97% for the three months ended September 30, 2026, as compared to 3.87% in 2025, an increase of 3%. Net interest income for the nine months ended September 30, 2026, was $32,725,000 as compared to $30,964,000 for the nine months ended September 30, 2025, an increase of 6%. The net interest margin increased for the nine months ended September 30, 2026.  It increased from 3.82% in 2025 to 3.83% in 2026.

The provision for credit losses for the three months ended September 30, 2026, was zero compared to $100,000 for the three months ended September 30, 2025. The provision for credit losses for the nine months ended September 30, 2026, reflected a reduction in reserves of $100,000, as compared to an increase in reserves of $200,000 for the nine months ended September 30, 2025.

Non-interest income for the three months ended September 30, 2026, was $968,000 compared to $1,175,000 for the same period last year, a decrease of 18%. Non-interest income for the nine months ended September 30, 2026, was $2,953,000 compared to $3,755,000 for the same period last year, a decrease of 21%.

Non-interest expense for the three months ended September 30, 2026, was $7,363,000, as compared to $8,134,000 for the same period last year, a decrease of 9%. Non-interest expense for the nine months ended September 30, 2026, was $22,117,000, as compared to $22,296,000 for the same period last year, a decrease of 1%.

The efficiency ratio for the three months ended September 30, 2026, was 62.07% compared to 58.90% in 2025, which represents an increase of 5%. The efficiency ratio illustrates that for every dollar made for the three-month period ending September 30, 2026, it cost $0.6207 to make it, as compared to $0.5890 one year ago. The efficiency ratio for the nine months ended September 30, 2026, was 61.76% compared to 61.11% in 2025, 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 September 30, 2026, the tier 1 leverage ratio was 10.56%, the common equity tier 1 capital ratio was 14.77%, the tier 1 risk-based capital ratio was 14.77% and the total risk-based capital ratio was 16.02%.

On September 17, 2026, the Company provided notice to holders of its $17,500,000 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 $10,000,000 of such notes on October 19, 2026. Following such redemption, $7,500,000 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.

THIRD QUARTER REPORT - SEPTEMBER 30, 2026 (Unaudited)
CW BANCORP						%
CONSOLIDATED BALANCE SHEET						Increase
(dollars in thousands)		Sept 30, 2026		Sept 30, 2025		(Decrease)
ASSETS
Cash and due from banks		$                   87,274		$                 131,818		-34 %
Securities available for sale		173,618		131,552		32 %
Securities held-to-maturity		17,499		26,501		-34 %
Loans		768,100		808,797		-5 %
Less allowance for credit losses (ACL)		(10,327)		(11,120)		-7 %
Loans, net		757,773		797,677		-5 %
Bank premises and equipment, net		2,036		2,923		-30 %
Other assets		37,810		35,234		7 %
Total assets		$               1,076,010		$              1,125,705		-4 %
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing deposits		$                 598,524		$                 564,081		6 %
Interest bearing deposits		338,788		407,462		-17 %
Total deposits		937,312		971,543		-4 %
Subordinated debenture		34,591		50,000		-31 %
Other liabilities		11,332		12,595		-10 %
		983,235		1,034,138		-5 %
Stockholders' equity		92,775		91,567		1 %
Total liabilities and stockholders' equity		$               1,076,010		$              1,125,705		-4 %
Shares outstanding at end of period		2,928,302		2,933,670
Book value per share		$                     37.43		$                    33.89
Total loans to total deposits		81.95 %		83.25 %
ACL to total loans		1.34 %		1.37 %
Nonperforming assets (non-accrual loans & OREO)		$                   13,415		$                    8,560
COMMERCEWEST BANK CAPITAL RATIOS:
Tier 1 leverage ratio		10.56 %		12.22 %
Common equity tier 1 capital ratio		14.77 %		16.68 %
Tier 1 risk-based capital ratio		14.77 %		16.68 %
Total risk-based capital ratio		16.02 %		17.93 %

 

CW BANCORP
CONSOLIDATED STATEMENT OF INCOME (Unaudited)		Three Months Ended				Increase		For the Nine Months Ended				Increase
(dollars in thousands except share and per share data)		Sept 30, 2026		Sept 30, 2025		(Decrease)		Sept 30, 2026		Sept 30, 2025		(Decrease)
INTEREST INCOME
Loans		$         10,607		$         11,493		-8 %		$         31,483		$         33,667		-6 %
Investments		1,987		1,273		56 %		5,251		3,914		34 %
Fed funds sold and other		949		1,521		-38 %		4,716		3,815		24 %
Total interest income		13,543		14,287		-5 %		41,450		41,396		0 %
INTEREST EXPENSE
Deposits		2,213		2,981		-26 %		7,202		9,026		-20 %
Subordinated debenture		468		469		0 %		1,523		1,406		8 %
Total interest expense		2,681		3,450		-22 %		8,725		10,432		-16 %
NET INTEREST INCOME BEFORE CREDIT LOSS PROVISION		10,862		10,837		0 %		32,725		30,964		6 %
PROVISION FOR CREDIT LOSSES		-		100		-100 %		(100)		200		-150 %
Non-interest income:
NET INTEREST INCOME AFTER CREDIT LOSS PROVISION		10,862		10,737		1 %		32,825		30,764		7 %
NON-INTEREST INCOME
Service Charges and Fees on Deposits		652		932		-30 %		2,100		2,986		-30 %
Other Fees		316		243		30 %		853		769		11 %
NON-INTEREST EXPENSE		7,363		8,134		-9 %		22,117		22,296		-1 %
EARNINGS BEFORE INCOME TAXES		4,467		3,778		18 %		13,661		12,223		12 %
INCOME TAXES		1,180		1,000		18 %		3,745		3,428		9 %
NET INCOME		$           3,287		$           2,778		18 %		$           9,916		$           8,795		13 %
Basic earnings per share		$             1.12		$             0.94		19 %		$             3.39		$             2.96		15 %
Diluted earnings per share		$             1.11		$             0.93		19 %		$             3.35		$             2.93		14 %
Return on Assets		1.17 %		0.97 %		21 %		1.13 %		1.05 %		8 %
Return on Equity		13.18 %		12.17 %		8 %		13.51 %		13.25 %		2 %
Return on Tangible Equity		13.60 %		12.60 %		8 %		13.94 %		13.72 %		2 %
Efficiency Ratio		62.07 %		58.90 %		5 %		61.76 %		61.11 %		1 %

 

CW BANCORP
CONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS
	Three Months Ended September 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	$         84,532		$          795		3.73 %		$       123,826		$        1,381		4.42 %
Investment Securities (1)	223,147		2,083		3.70 %		171,665		1,331		3.08 %
Loans	779,058		10,607		5.40 %		815,141		11,493		5.59 %
FHLB & Other Stocks	7,100		154		8.61 %		7,100		140		7.82 %
Total interest-earning assets	1,093,837		13,639		4.95 %		1,117,732		14,345		5.09 %
Noninterest-earning assets	18,907						22,937
Total assets	$    1,112,744						$    1,140,669
INTEREST EARNING LIABILITIES
Interest Bearing Deposits	$       350,940		$        2,213		2.50 %		$       419,484		$        2,981		2.82 %
Subordinated Debenture	34,929		468		5.28 %		50,000		469		3.75 %
Total interest-earning liabilities	385,869		2,681		2.76 %		469,484		3,450		2.92 %
Noninterest-earning liabilities
Demand Deposits	616,389						567,751
Other Liabilities	11,538						12,867
Shareholders' Equity	98,948						90,567
Total liabilities and shareholder's equity	$    1,112,744						$    1,140,669
Net Interest Spread			$      10,958		2.19 %				$      10,895		2.17 %
Net Interest Margin					3.97 %						3.87 %
Total Deposits	$       967,329		$        2,213		0.91 %		$       987,235		$        2,981		1.20 %
Total Funding Costs	$    1,002,258		$        2,681		1.06 %		$    1,037,235		$        3,450		1.32 %
(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
	Nine Months Ended September 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	$       152,907		$        4,236		3.70 %		$       102,407		$        3,399		4.44 %
Investment Securities (1)	209,410		5,495		3.51 %		175,013		4,090		3.12 %
Loans	781,943		31,483		5.38 %		805,215		33,667		5.59 %
FHLB & Other Stocks	7,100		480		9.04 %		7,100		416		7.83 %
Total interest-earning assets	1,151,360		41,694		4.84 %		1,089,735		41,572		5.10 %
Noninterest-earning assets	19,727						29,434
Total assets	$    1,171,087						$    1,119,169
INTEREST EARNING LIABILITIES
Interest Bearing Deposits	$       394,862		$        7,202		2.44 %		$       414,671		$        9,026		2.91 %
Subordinated Debenture	42,284		1,523		4.77 %		50,000		1,406		3.75 %
Total interest-earning liabilities	437,146		8,725		2.67 %		464,671		10,432		3.00 %
Noninterest-earning liabilities
Demand Deposits	622,562						553,038
Other Liabilities	13,231						12,685
Shareholders' Equity	98,148						88,775
Total liabilities and shareholder's equity	$    1,171,087						$    1,119,169
Net Interest Spread			$      32,969		2.17 %				$      31,140		2.10 %
Net Interest Margin					3.83 %						3.82 %
Total Deposits	$    1,017,424		$        7,202		0.95 %		$       967,709		$        9,026		1.25 %
Total Funding Costs	$    1,059,708		$        8,725		1.10 %		$    1,017,709		$      10,432		1.37 %
(1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate

 

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SOURCE CW Bancorp

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were CW Bancorp's third-quarter 2026 earnings?

CW Bancorp earned $3.287 million, or $1.11 per diluted share, in the third quarter of 2026. Net income increased 18% and diluted earnings per share increased 19% from the third quarter of 2025, when earnings were $2.778 million, or $0.93 per diluted share.

How did CW Bancorp's credit quality change in the third quarter of 2026?

Nonperforming assets rose to $13.415 million at September 30, 2026, from $8.560 million a year earlier. The allowance for credit losses was 1.34% of total loans, compared with 1.37%. The quarterly credit-loss provision was zero, versus $100,000 in the third quarter of 2025.

Which subordinated notes did CW Bancorp plan to partially redeem in October 2026?

CW Bancorp gave notice of its intent to redeem $10 million of its $17.5 million in 3.75% fixed-to-floating-rate subordinated notes due April 1, 2031, on October 19, 2026. Following that redemption, $7.5 million would remain outstanding. A separate $17.5 million series of 3.75% fixed-to-floating-rate notes due December 15, 2031, also remained outstanding.