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Gateway Bank, F.S.B. Reports First Quarter 2026 Results; Highlighted by 24% Loan Growth Year Over Year

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Gateway Bank (OTCPK: GWBK) reported a net loss of $336,000 for Q1 2026 versus losses of $1.23 million in Q4 2025 and $958,000 in Q1 2025. Net interest income rose to $1.51M, total revenue to $1.53M, and net interest margin reached 2.23%. Total loans grew 23.8% year-over-year to $232.7M at March 31, 2026. The bank completed a $16.1M private placement of common shares and reduced non-interest expense by 24.6% quarter-over-quarter. Total deposits declined 12.4% year-over-year. All results are unaudited.

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Positive

  • Total loans +23.8% year-over-year to $232.7M
  • Net interest income +22.1% year-over-year to $1.51M
  • Net interest margin 2.23% (up from 1.91% YoY)
  • $16.1M private placement completed
  • Non-interest expense down 24.6% quarter-over-quarter

Negative

  • Net loss of $336,000 in Q1 2026
  • Total deposits down 12.4% year-over-year to $202.3M
  • Allowance for credit losses fell to 1.09% of loans
  • Nonperforming loans $5.76M (up from $2.29M year-ago)

News Market Reaction – GWBK

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In the Apr 29 session, GWBK gained 7.43%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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

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OAKLAND, Calif., April 28, 2026 (GLOBE NEWSWIRE) -- Gateway Bank, F.S.B. (OTCPK: GWBK) (“the Bank”) today announced a net loss of $336,000 for the first quarter of 2026. This compared to a net loss of $1.23 million in the preceding quarter, and a net loss of $958,000 in the first quarter of 2025. Net interest margin expansion and solid loan growth drove improved operating results compared to both the prior quarter and year-ago period. All financial results are unaudited.

“We are energized with the momentum building across our franchise this quarter as we make measurable progress toward sustained profitability,” said Mukhtar Ali, President and CEO. “Loan growth has been robust, and our strategy of front-loading asset generation in the first and second quarters — including selectively acquiring jumbo mortgage loans at attractive premiums — is tracking to plan. Alongside that growth, we remain equally focused on deposit generation and improving our funding mix.

“On the talent front, we have made meaningful additions to our team,” Ali continued. “Our first two relationship managers in years joined the Walnut Creek team during the first quarter and are already making an impact. Their combined depth of experience in commercial banking and relationship management strengthens our ability to serve clients at the highest level. Additions like these are a direct reflection of the foundation we are building and the kind of talent we intend to keep attracting. We are making deliberate progress toward sustained profitability and remain focused on strengthening our funding base and building the foundation for durable earnings power. We are encouraged by the traction to date and confident in the road ahead.

“One of the highlights of the quarter was the successful completion of our $16.1 million private placement of common shares. This capital raise strengthens our balance sheet and positions us to accelerate our growth initiatives. The Bay Area banking landscape continues to evolve, as ongoing consolidation has created meaningful market gaps that we believe Gateway Bank is well-positioned to fill. We will deploy this capital deliberately, with a clear focus on profitability and long-term franchise value. Our team is committed to that work, and we remain determined to establish Gateway Bank as a leading community bank in the Bay Area,” said Ali.

First Quarter 2026 Highlights:

  • Net interest income increased 21.4% to $1.51 million in the first quarter of 2026, compared to $1.25 million in the fourth quarter of 2025, and increased 22.1% compared to $1.24 million in the first quarter of 2025.
  • The Bank reported a net loss of $336,000 for the first quarter of 2026, compared to net loss of $1.23 million for the fourth quarter of 2025, and a net loss of $958,000 for the first quarter of 2025.
  • Total revenue, consisting of net interest income before the provision for credit losses, plus non-interest income, increased 22.3% to $1.53 million in the first quarter of 2026, compared to $1.25 million in the preceding quarter and increased 28.2% compared to $1.20 million in the first quarter a year ago. 
  • Net interest margin was 2.23% in the first quarter of 2026, compared to 2.10% in the preceding quarter and 1.91% in the first quarter a year ago. The 13 basis point increase in net interest margin during the first quarter was due to an improved cost of funds and stable earning asset yields compared to the linked quarter.
  • Non-interest expense decreased 24.6% to $1.87 million in the first quarter of 2026, compared to $2.47 million in the preceding quarter, and decreased 9.5% when compared to $2.06 million in the first quarter a year ago.
  • Average assets for the quarter totaled $273.3 million, an increase of $30.2 million, or 12.4% from the prior quarter, and an increase of $15.9 million, or 6.2% from the year ago quarter. Total assets increased $26.1 million, or 10.0% to $286.5 million at March 31, 2026, compared to $260.5 million at December 31, 2025, and increased $28.9 million, or 11.2% compared to 257.6 million at March 31, 2025.
  • Average total gross loans for the first quarter of 2026 increased $18.7 million, or 9.6% to $212.7 million, compared to $194.1 million in the fourth quarter of 2025, and increased $23.8 million, or 12.6% from $188.9 million in the first quarter of 2025. Total loans at March 31, 2026, increased 8.2% during the quarter to $232.7 million from $215.1 million at December 31, 2025, and increased 23.8% compared to $187.9 million at March 31, 2025.
  • Average first quarter 2026 total deposits grew $2.19 million, or 1.1% to $204.5 million, from $202.4 million in the preceding quarter, and decreased 11.1% from $230.1 million in the first quarter of a year ago. Total deposits decreased nominally to $202.3 million, at March 31, 2026, compared to $203.0 million at December 31, 2025, and decreased $28.7 million, or 12.4% compared to $231.0 million at March 31, 2025.
  • The Bank recorded a $3,000 provision for credit losses in the first quarter of 2026, compared to a $9,000 provision in the fourth quarter of 2025, and a $92,000 provision in the first quarter of 2025.
  • Allowance for credit losses, as a percentage of total loans, was 1.09% at March 31, 2026, compared to 1.18% at December 31, 2025, and 1.36% at March 31, 2025.
  • Nonperforming loans totaled $5.76 million at March 31, 2026, compared to $5.88 million at December 31, 2025, and $2.29 million a year ago.
  • There were no net charge-offs in the first quarter of 2026, or in the prior quarter or year ago quarter.
  • The Bank’s capital levels remained above the threshold for well-capitalized institutions with a Community Bank Leverage Ratio of 14.59% at March 31, 2026.

During the first quarter, the Bank celebrated the grand opening of its relocated Walnut Creek branch at 1801 N. California Blvd, Suite 101. The full-service location sits just a block from the Walnut Creek BART station, across from the business district, and offers parking beneath the building. “This new location in Walnut Creek gives us a better home base in a market we’ve been committed to for years,” said Ali. “The move puts us closer to our clients, and we think that proximity matters. We are excited to deepen the relationships we’ve already built here and continue supporting the region’s growth from this new space.”

About Gateway Bank, F.S.B. Gateway Bank is a Federally-chartered savings bank headquartered in Oakland, California and began operations on June 8, 1990. The Bank currently operates out of its offices located in Oakland’s Chinatown and Walnut Creek, and offers banking services to individuals and businesses in the San Francisco Bay Area.

Gateway Bank, FSB     
Balance Sheets     
Unaudited     
 Mar 31 2026Dec 31 2025Sep 30 2025Jun 30 2025Mar 31 2025
Assets     
Cash and due from banks 1,828,608  1,629,783  1,285,211  1,940,726  1,810,092 
Fed funds sold 128,881  -  -  -  - 
Interest bearing deposits with banks 16,054,308  9,150,342  15,358,735  22,126,902  26,481,238 
Total cash and equivalents 18,011,797  10,780,125  16,643,946  24,067,628  28,291,330 
      
Investment securities, AFS 27,456,099  27,839,840  30,557,274  33,164,921  34,836,163 
FHLB Stock and Other Investments 2,061,200  2,061,200  2,061,200  2,061,200  1,732,500 
      
1-4 family residential 161,339,952  161,718,113  134,471,362  140,800,113  147,529,395 
Multifamily residential 21,624,467  12,935,464  13,002,960  9,334,581  9,391,317 
Non-farm, non-residential real estate 45,360,554  36,071,404  28,854,756  29,032,759  27,683,863 
Commercial and industrial 4,356,480  4,366,320  3,134,343  3,279,098  3,357,502 
Consumer and other -  410  59  342  10 
Loans, net of unearned income 232,681,453  215,091,711  179,463,480  182,446,893  187,962,087 
Allowance for Credit Losses-Loans (2,543,007) (2,540,065) (2,531,061) (2,520,472) (2,559,090)
Total loans, net 230,138,446  212,551,646  176,932,419  179,926,421  185,402,997 
      
Premises and equipment, net 800,400  695,171  602,114  366,162  251,852 
Accrued interest receivable 1,231,367  1,162,055  1,156,714  1,227,080  1,325,751 
Other assets 6,830,271  5,376,047  5,073,847  5,372,032  5,760,991 
      
Total Assets$286,529,580 $260,466,084 $233,027,514 $246,185,444 $257,601,584 
      
Liabilities     
Non-Interest Bearing Deposits 8,365,308  9,641,094  9,165,121  8,243,872  7,664,830 
Interest bearing demand deposits 5,787,575  6,793,724  7,025,056  5,767,092  6,705,335 
Savings and Money Market Deposits 26,064,932  27,470,224  19,978,923  20,844,299  18,840,172 
Time Deposits - Retail 150,125,894  147,156,815  159,529,226  167,156,792  179,871,700 
Time Deposits - Wholesale 11,972,512  11,968,456  11,964,400  17,959,411  17,953,955 
Total Deposits 202,316,221  203,030,313  207,662,726  219,971,466  231,035,992 
      
Borrowings 43,000,000  33,000,000  -  -  - 
Accrued expenses and other liabilities 3,871,641  2,346,532  2,380,514  2,741,604  2,589,898 
Total Liabilities 249,187,862  238,376,845  210,043,240  222,713,070  233,625,890 
      
Equity     
Preferred Stock -  -  -  -  - 
Common stock 53,763,103  26,991,436  26,991,436  26,991,436  26,991,436 
Capital surplus 24,665,279  35,972,894  35,962,369  35,962,369  35,962,369 
Retained earnings (38,216,587) (34,332,122) (34,332,122) (34,332,122) (34,332,122)
Accumulated other comprehensive income (loss) (2,534,270) (2,658,504) (2,981,990) (3,364,208) (3,688,372)
Net Income (335,807) (3,884,465) (2,655,419) (1,785,101) (957,617)
Total Equity 37,341,718  22,089,239  22,984,274  23,472,374  23,975,694 
      
Total Liabilities & Equity$286,529,580 $260,466,084 $233,027,514 $246,185,444 $257,601,584 
      


Gateway Bank, FSB     
Quarterly Income Statements     
UnauditedQuarter Ended
 Mar 31 2026Dec 31 2025Sep 30 2025Jun 30 2025Mar 31 2025
Interest Income     
Interest and fees on loans2,907,033 2,682,155 2,602,415 2,562,996 2,724,726 
Dividends on FHLB stock97,379 40,970 38,439 32,181 39,040 
Interest on federal funds sold283 208 3,447 2,036 30,986 
Interest on deposits with banks217,706 118,893 189,417 253,223 248,615 
Investment securities - AFS257,941 277,750 332,268 367,675 369,666 
Total Interest Income3,480,342 3,119,976 3,165,986 3,218,111 3,413,033 
      
Interest Expense     
Interest bearing demand deposits1,453 1,651 1,215 785 862 
Savings and money market deposits159,637 146,900 122,160 98,936 84,479 
Retail time deposits1,382,261 1,464,269 1,661,229 1,754,029 1,911,630 
Wholesale time deposits114,287 116,736 145,127 178,729 176,825 
Total Interest Expense on Deposits1,657,638 1,729,556 1,929,731 2,032,479 2,173,796 
      
Interest expense on borrowings309,921 144,463 - - - 
Total Interest Expense1,967,559 1,874,019 1,929,731 2,032,479 2,173,796 
      
Net Interest Income1,512,783 1,245,957 1,236,255 1,185,632 1,239,237 
      
Provision for credit losses2,942 9,004 10,589 (38,619)91,762 
Net interest income after provision for credit losses1,509,841 1,236,953 1,225,666 1,224,251 1,147,475 
      
Non Interest Income     
Service charges and fees3,188 3,222 2,994 5,269 8,137 
Loan servicing fees & MSR valuation720 (12,209)(37,304)(27,567)(25,020)
Other noninterest income16,870 16,565 16,810 23,917 (25,747)
Total Non Interest Income20,778 7,578 (17,500)1,619 (42,630)
      
Non Interest Expense     
Salaries and employee benefits1,059,563 1,335,580 1,120,524 1,072,994 1,096,917 
Occupancy153,832 174,937 292,661 241,429 238,297 
Other noninterest expense653,031 963,059 665,299 738,131 727,248 
Total Non Interest Expense1,866,426 2,473,576 2,078,484 2,052,554 2,062,462 
      
Income (Loss) Before Taxes(335,807)(1,229,045)(870,318)(826,684)(957,617)
Income taxes- - - 800 - 
Net Income (Loss)(335,807)(1,229,045)(870,318)(827,484)(957,617)
      


Gateway Bank, FSB     
Quarterly Financial Highlights     
UnauditedFor The Quarter Ended
($ in Thousands)Mar 31 2026Dec 31 2025Sep 30 2025Jun 30 2025Mar 31 2025
      
EARNINGS     
Net interest income$1,513 $1,246 $1,236 $1,186 $1,239 
Provision for credit losses 3  9  11  (39) 92 
Non-interest income 21  8  (18) 2  (43)
Non-interest expense 1,866  2,474  2,078  2,053  2,062 
Net income (336) (1,229) (870) (827) (958)
      
PERFORMANCE RATIOS     
Yield on loans 5.48% 5.52% 5.71% 5.58% 5.78%
Yield on earning assets 5.19% 5.20% 5.32% 5.21% 5.37%
Cost of funds 3.34% 3.41% 3.57% 3.65% 3.83%
Net interest margin 2.23% 2.10% 2.10% 1.91% 1.91%
      
CAPITAL     
Tangible equity to tangible assets 12.94% 8.38% 9.74% 9.41% 9.18%
Community Bank Leverage Ratio 14.59% 10.18% 10.65% 10.58% 10.59%
      
ASSET QUALITY     
Net loan charge-offs (recoveries)$- $- $- $- $- 
Allowance for credit losses on loans 2,543  2,540  2,531  2,520  2,559 
Non-performing loans 5,757  5,877  4,039  3,040  2,286 
ACL to total loans 1.09% 1.18% 1.41% 1.38% 1.36%
ACL to non-performing loans 44% 43% 63% 83% 112%
      
END OF PERIOD BALANCES     
Total loans, gross$232,681 $215,092 $179,463 $182,447 $187,962 
Total assets 286,530  260,466  233,028  246,185  257,602 
Deposits 202,316  203,030  207,663  219,971  231,036 
FHLB Advances 43,000  33,000  -  -  - 
Total equity 37,342  22,089  22,984  23,472  23,975 
Loan to deposit ratio 115.0% 105.9% 86.4% 82.9% 81.4%
      
QUARTERLY AVERAGE BALANCES     
Total loans, gross$212,719 $194,060 $182,190 $183,889 $188,877 
Earning assets 266,442  236,773  234,217  243,567  250,921 
Total assets 273,297  243,104  240,555  249,954  257,436 
Deposits 204,549  202,358  214,611  223,431  230,117 
FHLB Advances 34,000  15,565  -  -  - 
Total equity 32,128  22,768  23,295  23,731  24,424 
      


Contact:

Mukhtar Ali
(510) 813-8582
Mukhtar.Ali@gatewayfsb.com


FAQ

What were Gateway Bank (GWBK) Q1 2026 earnings and net loss?

Gateway Bank reported a net loss of $336,000 for Q1 2026. According to the company, this compares to a $1.23 million loss in Q4 2025 and a $958,000 loss in Q1 2025, with results reported as unaudited.

How much did Gateway Bank (GWBK) loans grow in Q1 2026?

Total loans increased to $232.7 million at March 31, 2026. According to the company, that represents a 23.8% year-over-year increase and an 8.2% rise versus December 31, 2025.

What drove Gateway Bank's (GWBK) revenue and margin improvement in Q1 2026?

Net interest income rose to $1.51M and net interest margin hit 2.23%. According to the company, margin expansion reflected improved cost of funds with stable earning asset yields.

Did Gateway Bank (GWBK) raise capital in Q1 2026 and how much?

Yes — the bank completed a $16.1 million private placement of common shares. According to the company, the capital raise strengthens the balance sheet and supports growth initiatives.

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