CW Bancorp Reports Third Quarter 2025 Financial Results

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Oct 31, 2025, 08:30 ET

IRVINE, Calif., Oct. 31, 2025 /PRNewswire/ -- CW Bancorp (OTCQX: CWBK), the parent company ("the Company") of CommerceWest Bank (the "Bank") reported consolidated net income for the third quarter of 2025 of $2,778,000 or $0.93 per diluted share as compared to $3,131,000 or $1.03 per diluted share for the third quarter of 2024, an EPS decrease of 9% and net income for the nine months ended September 30, 2025 of $8,795,000 or $2.93 per diluted share as compared to $9,208,000 or $2.99 per diluted share for the nine months ended September 30, 2024, an EPS decrease of 2%. The Bank recorded a one-time charge of $1.025 million in the third quarter related to a single client fraud incident. Net income for the quarter excluding the one-time charge would have been $3,501,000 or $1.19 per diluted share an EPS increase of 14% and $9,518,000 year to date or $3.17 per diluted share, an EPS increase of 6%.

Key Financial Results for the three months ended September 30, 2025:

EPS of $0.93 (EPS of $1.19 excluding one-time charge)
Return on Assets of 0.97% (ROA of 1.22% excluding one-time charge)
Return on Tangible Equity of 12.60% (ROTE of $15.87% excluding one-time charge)
ACL to total loans ratio of 1.37%
No outstanding FRB or FHLB borrowings
Non-interest-bearing deposits to total deposits of 58%
Strong leverage ratio of 12.22% and total risk-based capital ratio of 17.93%
63 quarters of consecutive profits

Key Financial Results for the nine months ended September 30, 2025:

EPS of $2.93 (EPS of $3.17 excluding one-time charge)
Return on Assets of 1.05% (ROA of 1.14% excluding one-time charge)
Return on Tangible Equity of 13.72% (ROTE of $14.85% excluding one-time charge)
Net interest income growth of 7%
8% loan growth year over year

Mr. Ivo Tjan, Chairman, President and CEO commented, "The Company delivered strong performance this quarter, excluding the one-time charge, with double digit growth in net income, Return on Assets and Earnings Per Share. Our focus remains on our clients and leveraging technologies, including AI, to drive productivity and efficiency across the Bank." Mr. Tjan continued, "I am incredibly proud of our team's execution and dedication. We are strategically focused on growing core deposits, expanding quality commercial lending relationships, and building a future defined by innovation, opportunity, and enduring growth."

Total assets decreased $49.5 million as of September 30, 2025, a decrease of 4% as compared to the same period one year ago. Total loans increased $56.8 million as of September 30, 2025, an increase of 8% from the prior year. Cash and due from banks decreased $106.1 million or 45% over the prior year. Total investment securities increased $594,000, an increase of 0.4% from the prior year.

Total deposits decreased $55.3 million as of September 30, 2025, a decrease of 5% from September 30, 2024. Non-interest-bearing deposits decreased $14.5 million as of September 30, 2025, a decrease of 2% from the prior year. Interest bearing deposits decreased $40.9 million as of September 30, 2025, a decrease of 9% over the prior year.

Interest income was $14,287,000 for the three months ended September 30, 2025, as compared to $13,856,000 for the three months ended September 30, 2024, an increase of 3%. Interest expense was $3,450,000 for the three months ended September 30, 2025, as compared to $3,841,000 for the three months ended September 30, 2024, a decrease of 10%.

Interest income was $41,396,000 for the nine months ended September 30, 2025, as compared to $39,441,000 for the nine months ended September 30, 2024, an increase of 5%. Interest expense was $10,432,000 for the nine months ended September 30, 2025, as compared to $10,527,000 for the nine months ended September 30, 2024, a decrease of 1%.

Net interest income for the three months ended September 30, 2025, was $10,837,000 as compared to $10,015,000 for the three months ended September 30, 2024, an increase of 8%. The net interest margin increased for the three months ended September 30, 2025. It increased to 3.91% in 2025 from 3.75% in 2024, an increase of 4%. Net interest income for the nine months ended September 30, 2025, was $30,964,000 as compared to $28,914,000 for the nine months ended September 30, 2024, an increase of 7%. The net interest margin increased for the nine months ended September 30, 2025. It increased to 3.87% in 2025 from 3.79% in 2024, an increase of 2%.

Provision for credit losses for the three months ended September 30, 2025, was $100,000 compared to zero for the three months ended September 30, 2024. Provision for credit losses for the nine months ended September 30, 2025, was $200,000 compared to zero for the nine months ended September 30, 2024.

Non-interest income for the three months ended September 30, 2025, was $1,175,000 compared to $1,727,000 for the same period last year, a decrease of 32%. Non-interest income for the nine months ended September 30, 2025, was $3,755,000 compared to $4,154,000 for the same period last year, a decrease of 10%.

Non-interest expense for the three months ended September 30, 2025, was $8,134,000 compared to $7,344,000 for the same period last year, an increase of 11%. Without the one-time charge, non-interest expense for the quarter was $7,109,000 down 3% from the prior period. Non-interest expense for the nine months ended September 30, 2025, was $22,296,000 compared to $20,182,000 for the same period last year, an increase of 10%. Without the one-time charge, non-interest expense for the year would be $21,271,000 up 5% from the prior year.

The efficiency ratio for the three months ended September 30, 2025, excluding the non-recurring item, was 58.90% compared to 62.23% in 2024, which represents a decrease of 5%. The efficiency ratio illustrates that for every dollar made for the three-month period ending September 30, 2025, it cost $0.5890 to make it, as compared to $0.6223 one year ago. The efficiency ratio for the nine months ended September 30, 2025, excluding the non-recurring item, was 61.11% compared to 60.70% 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 September 30, 2025, the tier 1 leverage ratio was 12.22%, the common equity tier 1 capital ratio was 16.68%, the tier 1 risk-based capital ratio was 16.68% and the total risk-based capital ratio was 17.93%.

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 Irvine, California, the Bank serves businesses throughout the state of California with our 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 wide range of commercial banking services, including remote deposit solution, NetBanker online banking, mobile banking, lines of credit, M&A / working capital loans, commercial real estate loans, SBA loans 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, 2025 (Unaudited)

CW BANCORP			%
CONSOLIDATED BALANCE SHEET			Increase
(dollars in thousands)	Sept 30, 2025	Sept 30, 2024	(Decrease)

ASSETS
Cash and due from banks	$ 131,818	$ 237,913	-45 %
Securities available for sale	131,552	126,950	4 %
Securities held-to-maturity	26,501	30,509	-13 %

Loans	808,797	752,003	8 %
Less allowance for credit losses (ACL)	(11,120)	(11,494)	-3 %
Loans, net	797,677	740,509	8 %

Bank premises and equipment, net	2,923	3,801	-23 %
Other assets	35,234	35,536	-1 %
Total assets	$ 1,125,705	$ 1,175,218	-4 %

LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing deposits	$ 564,081	$ 578,535	-2 %
Interest bearing deposits	407,462	448,348	-9 %
Total deposits	971,543	1,026,883	-5 %

Subordinated debenture	50,000	50,000	0 %
Other liabilities	12,595	13,358	-6 %
	1,034,138	1,090,241	-5 %
Stockholders' equity	91,567	84,977	8 %
Total liabilities and stockholders' equity	$ 1,125,705	$ 1,175,218	-4 %

Shares outstanding at end of period	2,933,670	3,000,598
Book value per share	$ 33.89	$ 30.75
Total loans to total deposits	83.25 %	73.23 %
ACL to total loans	1.37 %	1.53 %
Nonperforming assets (non-accrual loans & OREO)	$ 8,560	$ 5,678

COMMERCEWEST BANK CAPITAL RATIOS:
Tier 1 leverage ratio	12.22 %	11.77 %
Common equity tier 1 capital ratio	16.68 %	17.45 %
Tier 1 risk-based capital ratio	16.68 %	17.45 %
Total risk-based capital ratio	17.93 %	18.70 %

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, 2025	Sept 30, 2024	(Decrease)	Sept 30, 2025	Sept 30, 2024	(Decrease)

INTEREST INCOME
Loans	$ 11,493	$ 10,044	14 %	$ 33,667	$ 29,834	13 %
Investments	1,273	1,193	7 %	3,914	3,485	12 %
Fed funds sold and other	1,521	2,619	-42 %	3,815	6,122	-38 %
Total interest income	14,287	13,856	3 %	41,396	39,441	5 %

INTEREST EXPENSE
Deposits	2,981	3,372	-12 %	9,026	9,121	-1 %
Subordinated debenture	469	469	0 %	1,406	1,406	0 %
Total interest expense	3,450	3,841	-10 %	10,432	10,527	-1 %

NET INTEREST INCOME BEFORE CREDIT LOSS PROVISION	10,837	10,015	8 %	30,964	28,914	7 %

PROVISION FOR CREDIT LOSSES	100	-	-	200	-	-
Non-interest income:

NET INTEREST INCOME AFTER CREDIT LOSS PROVISION	10,737	10,015	7 %	30,764	28,914	6 %

NON-INTEREST INCOME
Service Charges and Fees on Deposits	932	1,402	-33 %	2,986	3,234	-8 %
Other Fees	243	325	-25 %	769	920	-16 %

NON-INTEREST EXPENSE	8,134	7,344	11 %	22,296	20,182	10 %

EARNINGS BEFORE INCOME TAXES	3,778	4,398	-14 %	12,223	12,886	-5 %

INCOME TAXES	1,000	1,267	-21 %	3,428	3,678	-7 %


NET INCOME	$ 2,778	$ 3,131	-11 %	$ 8,795	$ 9,208	-4 %

Basic earnings per share	$ 0.94	$ 1.04	-10 %	$ 2.96	$ 3.03	-2 %
Diluted earnings per share	$ 0.93	$ 1.03	-9 %	$ 2.93	$ 2.99	-2 %
Return on Assets	0.97 %	1.11 %	-13 %	1.05 %	1.14 %	-8 %
Return on Equity	12.17 %	15.06 %	-19 %	13.25 %	15.27 %	-13 %
Return on Tangible Equity	12.60 %	15.64 %	-19 %	13.72 %	15.88 %	-14 %
Efficiency Ratio	58.90 %	62.23 %	-5 %	61.11 %	60.70 %	1 %

CW BANCORP
CONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS

	Three Months Ended September 30,
	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	$ 123,826	$ 1,381	4.42 %	$ 182,374	$ 2,480	5.41 %
Investment Securities (1)	158,027	1,331	3.34 %	157,632	1,252	3.16 %
Loans	815,141	11,493	5.59 %	720,333	10,044	5.55 %
FHLB & Other Stocks	7,100	140	7.82 %	7,100	139	7.79 %
Total interest-earning assets	1,104,094	14,345	5.15 %	1,067,439	13,915	5.19 %

Noninterest-earning assets	36,575			57,526
Total assets	$ 1,140,669			$ 1,124,965


INTEREST EARNING LIABILITIES
Interest Bearing Deposits	$ 419,484	$ 2,981	2.82 %	$ 422,112	$ 3,372	3.18 %
Subordinated Debenture	50,000	469	3.75 %	50,000	469	3.75 %
Total interest-earning liabilities	469,484	3,450	2.92 %	472,112	3,841	3.24 %

Noninterest-earning liabilities
Demand Deposits	567,751			556,290
Other Liabilities	12,867			13,857
Shareholders' Equity	90,567			82,706
Total liabilities and shareholder's equity	$ 1,140,669			$ 1,124,965

Net Interest Spread		$ 10,895	2.23 %		$ 10,074	1.95 %
Net Interest Margin			3.91 %			3.75 %

Total Deposits	$ 987,235	$ 2,981	1.20 %	$ 978,402	$ 3,372	1.37 %
Total Funding Costs	$ 1,037,235	$ 3,450	1.32 %	$ 1,028,402	$ 3,841	1.49 %

(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,
	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	$ 102,407	$ 3,399	4.44 %	$ 139,800	$ 5,697	5.44 %
Investment Securities (1)	161,327	4,090	3.39 %	158,295	3,664	3.09 %
Loans	805,215	33,667	5.59 %	721,056	29,834	5.53 %
FHLB & Other Stocks	7,100	416	7.83 %	7,100	425	8.00 %
Total interest-earning assets	1,076,049	41,572	5.17 %	1,026,251	39,620	5.16 %

Noninterest-earning assets	43,120			52,431
Total assets	$ 1,119,169			$ 1,078,682


INTEREST EARNING LIABILITIES
Interest Bearing Deposits	$ 414,671	$ 9,026	2.91 %	$ 380,537	$ 9,121	3.20 %
Subordinated Debenture	50,000	1,406	3.75 %	50,000	1,406	3.75 %
Total interest-earning liabilities	464,671	10,432	3.00 %	430,537	10,527	3.27 %

Noninterest-earning liabilities
Demand Deposits	553,038			553,652
Other Liabilities	12,685			13,966
Shareholders' Equity	88,775			80,527
Total liabilities and shareholder's equity	$ 1,119,169			$ 1,078,682

Net Interest Spread		$ 31,140	2.17 %		$ 29,093	1.89 %
Net Interest Margin			3.87 %			3.79 %

Total Deposits	$ 967,709	$ 9,026	1.25 %	$ 934,189	$ 9,121	1.30 %
Total Funding Costs	$ 1,017,709	$ 10,432	1.37 %	$ 984,189	$ 10,527	1.43 %