Cashmere Valley Bank Reports Quarterly Earnings of $5.8 Million

CASHMERE, WA / ACCESS Newswire / April 22, 2026 / Cashmere Valley Bank (OTCQX:CSHX) ("Bank"), announced quarterly earnings of $5.8 million for the quarter ended March 31, 2026. Diluted earnings per share totaled $1.54, representing a decrease of $0.10 per share, or 6.1%.

"We saw mixed results in the first quarter," said Greg Oakes, President and CEO. "Loan and deposit totals are both up nicely from year end. We were also very pleased with the results of the tender offers to repurchase common shares, and the tender offers provided liquidity to previous shareholders. Conversely, net income declined from a year ago, which is disappointing. The decrease in net income was primarily due to increases in loan loss provision expense from delinquencies and charge-offs in the indirect dealer and equipment finance portfolios."

Q1 Highlights

The Bank reported the following statement of condition highlights as of March 31, 2026:

• As of March 31, 2026, gross loans totaled $971.9 million, which represented an increase from March 31, 2025 of $4.5 million, or 0.5%. The Bank experienced loan growth in 2026 as loan balances increased $20.0 million since December 31, 2025.

• Deposit balances totaled $1.94 billion as of March 31, 2026. Deposit balances increased $113.7 million, or 6.2%, from March 31, 2025. Deposit balances increased from December 31, 2025 by $42.6 million, or 2.2%. Non-interest deposits totaled $407.2 million as of March 31, 2026, which represented 21.0% of total deposits.

• Return on assets decreased from 1.23% to 1.04%, due to reduced net income in combination with asset growth.

• Return on equity decreased from 11.1% to 9.0%, due to reduced net income along with an increasing equity base.

• Tender offers to repurchase shares of the Bank's common stock were completed in January 2026 and April 2026 totaling 327,419 shares, or 8.38%, of the common shares outstanding. Cash paid for the repurchases totaled $24.6 million.

Cash, Cash Equivalents and Restricted Cash

Total cash, cash equivalents and restricted cash totaled $263.3 million at March 31, 2026, compared to $186.2 million at March 31, 2025. The $77.1 million increase was primarily due to efforts to retain higher cash balances on overnight funds. Available borrowing lines from correspondent banks, the Federal Home Loan Bank and the Federal Reserve totaled approximately $359.1 million.

Investments

The investment portfolio, net of the held to maturity allowance, totaled $980.6 million at March 31, 2026, which was an increase of $101.2 million from March 31, 2025. As of March 31, 2026, available for sale securities totaled $858.4 million and held to maturity securities, net of the allowance, totaled $122.1 million. Unrealized losses on available for sale securities decreased from $55.4 million at March 31, 2025 to $42.6 million at March 31, 2026.

During the first quarter of 2026, a gain on sale of securities of $55,000 was recorded as part of a securities sale. Proceeds from the securities sale were reinvested into the available for sale securities portfolio as part of an interest rate risk management strategy.

Loans and Credit Quality

Gross loans increased $4.5 million from March 31, 2025, reaching $971.9 million as of March 31, 2026. Gross loan totals increased $20.0 million from December 31, 2025. Since December 31, 2025, commercial and agricultural balances increased $11.1 million, multifamily loans increased $5.5 million and residential adjustable-rate mortgages increased $5.1 million.

The allowance for credit losses on loans (ACL) was 1.17% of gross loans as compared to 1.28% one year ago. During the first quarter of 2026, the Bank recorded $1.4 million in provision expense on loans, and the allowance balance totaled $11.4 million. Provision for credit losses in the first quarter of 2025 totaled $761,000.

Credit quality remains strong with non-performing loans representing 0.43% of gross loans as of March 31, 2026. This is a slight increase from 0.34% as of March 31, 2025.

Deposits

Deposits totaled $1.94 billion at March 31, 2026, which represented an increase of $113.7 million, or 6.2%, from the prior year. During the first quarter of 2026, the average cost of funds was unchanged from the prior year at 1.63%. Certificate of Deposit balances increased $77.0 million over the past twelve months.

Equity

Tier 1 capital remains strong. Tier 1 capital increased to $289.9 million as of March 31, 2026, which represented an increase of 2.8% from $281.9 million at March 31, 2025. The Bank's semi-annual dividend was paid February 9, 2026 at a rate of $1.00 per share.

As of March 31, 2026, GAAP equity capital decreased $13.3 million from March 31, 2025, or 5.5%. In January 2026 the Bank repurchased 200,000 shares of its common stock at a price of $75.00 per share. The repurchase decreased Tier 1 and GAAP equity by $15.0 million. The Bank's GAAP equity to assets remained strong at 11.27% as of March 31, 2026 as compared to 11.32% as of March 31, 2025.

Earnings

Net Interest Income

Net interest income totaled $16.6 million in the first quarter of 2026, compared to $16.2 million in the same quarter a year ago. The increase from the prior year was largely attributable to improving loan rates in combination with growth in investment securities balances and cash on hand.

Interest income on available for sale and held to maturity securities increased $467,000, or 5.2%, from one year ago. The increase was due to increasing balances which were partially offset by decreasing yields within the portfolio.

Loan interest income increased $322,000 due average loan rates increasing to 5.56% as of March 31, 2026, from 5.40% at March 31, 2025.

Interest income from deposits with other financial institutions and federal funds sold increased $101,000 due to an increase in average cash balances with other financial institutions. The increasing balances were partially offset by decreasing yields earned on cash balances as the federal funds rate has decreased 75 basis points in the prior twelve months.

The net interest margin was 3.05% for the first quarter of 2026 as compared to 3.17% one year ago, which was largely due to yields on earning assets decreasing 12 basis points.

Non-Interest Income

Non-interest income totaled $5.6 million in the first quarter of 2026 as compared to $5.7 million in the first quarter of 2025. Brokerage commissions from Cashmere Valley Wealth Management decreased $124,000 due to changes in personnel.

Non-Interest Expense

Non-interest expense totaled $13.7 million in the first quarter of 2026 as compared to $13.2 million in the first quarter of 2025. Salaries and benefits increased $308,000, or 4.0%, due to increasing wages. B&O taxes increased $118,000, or 33.0%.

The Bank's efficiency ratio was 61.5% in the first quarter of 2026 as compared to 60.2% in the first quarter of 2025.

About Cashmere Valley Bank

Cashmere Valley Bank was established September 24, 1932 and now has 11 retail offices in Chelan, Douglas, Kittitas and Yakima Counties and a municipal lending office in King County. The Bank provides business and personal banking, commercial lending, insurance services through its subsidiary Mitchell, Reed & Schmitten Insurance, investment services, mortgage services, equipment lease financing, auto and marine dealer financing and municipal lending. The success of Cashmere Valley Bank is the result of maintaining a high level of personal service and controlling expenses so our fees and charges offer our customers the best value available. We remain committed to those principles that we feel are best summarized as, "the little Bank with the big circle of friends."

Forward-Looking Statements

This release may contain certain forward-looking statements that are based on management's current expectations regarding economic, legislative, and regulatory issues that may impact the Bank's earnings in future periods. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "intend," "anticipate," "estimate," "will," "would," "should," "could" or "may." Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, economic uncertainty in the United States and abroad, changes in interest rates, deposit flows, real estate values, costs or effects of acquisitions, competition, changes in accounting principles, policies or guidelines, legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors affecting the Bank's operations. The Bank undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

MEDIA CONTACT:

Greg Oakes, CEO, [phone] or
Mike Lundstrom, CFO, [phone]

Consolidated Balance Sheets (UNAUDITED)
(Dollars in Thousands)
Cashmere Valley Bank and Subsidiary
		March 31, 2026				December 31, 2025				March 31, 2025
Assets
Cash and Cash Equivalent:
Cash & due from banks		$	24,654			$	31,097			$	27,192
Interest bearing deposits			234,279				216,434				156,653
Fed funds sold			4,374				3,389				2,342
Total Cash and Cash Equivalent			263,307				250,920				186,187
Securities available for sale			858,446				862,103				750,761
Securities held to maturity, net of allowance for credit losses of $12, $13 and $15, respectively			122,139				123,412				128,589
Federal Home Loan Bank stock, at cost			5,054				5,008				2,848
Loans held for sale			328				1,135				7
Loans			971,887				951,869				967,398
Allowance for credit losses			(11,384	)			(11,399	)			(12,391	)
Net loans			960,503				940,470				955,007
Premises and equipment			18,904				19,235				19,251
Accrued interest receivable			9,141				8,868				8,842
Other real estate and foreclosed assets			97				148				97
Bank Owned Life Insurance			27,580				27,343				27,862
Goodwill			7,661				7,579				7,579
Intangibles, net			2,462				2,233				2,562
Mortgage servicing rights			2,355				2,382				2,406
Net deferred tax assets			13,525				13,137				16,780
Other assets			9,495				9,339				13,649
Total assets		$	2,300,997			$	2,273,312			$	2,122,427
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Non-interest bearing demand		$	407,167			$	393,002			$	382,582
Savings and interest-bearing demand			938,174				927,918				926,100
Time			598,011				579,856				521,007
Total deposits			1,943,352				1,900,776				1,829,689
Accrued interest payable			2,867				3,073				2,881
Borrowings			82,000				83,000				35,001
Other liabilities			13,565				13,992				14,626
Total liabilities			2,041,784				2,000,841				1,882,197
Shareholders' Equity
Common stock (no par value); authorized 10,000,000 shares;
Issued and outstanding: 3/31/2026 -- 3,713,761 ; 12/31/2025 -- 3,907,525; 3/31/2025 -- 3,897,994			--				--				--
Additional paid-in capital			6,667				6,248				5,608
Treasury stock			(31,784	)			(16,784	)			(16,784	)
Retained Earnings			325,737				323,653				304,544
Other comprehensive income			(42,634	)			(41,823	)			(53,947	)
Total Cashmere Valley Bank shareholders' equity			257,986				271,294				239,421
Noncontrolling interest			1,227				1,177				809
Total shareholders' equity			259,213				272,471				240,230
Total liabilities and shareholders' equity		$	2,300,997			$	2,273,312			$	2,122,427

Quarterly Consolidated Statements of Income (UNAUDITED)
(Dollars in Thousands)
Cashmere Valley Bank & Subsidiary
		For the quarters ended,
		March 31, 2026				December 31, 2025				March 31, 2025
Interest Income
Loans and leases		$	13,156			$	13,408			$	12,834
Fed funds sold and deposits at other financial institutions			2,059				2,361				1,958
Securities available for sale:
Taxable			8,201				8,688				7,816
Tax-exempt			449				461				332
Securities held to maturity:
Taxable			726				733				762
Tax-exempt			25				25				24
Other interest income			--				595				--
Total interest income			24,616				26,271				23,726
Interest Expense
Deposits			7,199				7,605				7,111
Borrowings			784				829				401
Total interest expense			7,983				8,434				7,512
Net interest income			16,633				17,837				16,214
Provision for Credit Losses			1,424				859				761
Net interest income after provision for credit losses			15,209				16,978				15,453
Non-Interest Income
Service charges on deposit accounts			527				523				496
Mortgage banking operations			376				514				351
Net gain (loss) on sales of securities available for sale			55				--				130
Brokerage commissions			203				330				327
Insurance commissions and fees			2,635				2,330				2,667
Net interchange income			1,113				1,063				1,138
Earnings from Bank Owned Life Insurance			236				242				215
Dividends from correspondent banks			162				156				109
Other			297				305				288
Total non-interest income			5,604				5,463				5,721
Non-Interest Expense
Salaries and employee benefits			8,066				7,758				7,758
Occupancy and equipment			839				834				868
Audits and examinations			241				29				247
State and local business and occupation taxes			476				464				358
FDIC insurance & WA state assessments			303				267				268
Legal and professional fees			431				264				247
Net (gain) on foreclosed real estate			(94	)			--				--
Check losses and charge-offs			114				145				118
Low-income housing investment losses			45				66				158
Data processing			1,752				1,787				1,768
Product delivery			396				354				364
Other			1,097				1,072				1,059
Total non-interest expense			13,666				13,040				13,213
Income before income taxes			7,147				9,401				7,961
Income Taxes			1,302				2,280				1,502
Net income			5,845				7,121				6,459
Net income attributable to noncontrolling interest			49				32				48
Net income attributable to Cashmere Valley Bank		$	5,796			$	7,089			$	6,411
Earnings Per Share
Basic		$	1.55			$	1.81			$	1.65
Diluted		$	1.54			$	1.81			$	1.64

SOURCE: Cashmere Valley Bank

View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/banking-and-financial-services/cashmere-valley-bank-reports-quarterly-earnings-of-5.8-million-1159696