CW Bancorp Reports Third Quarter 2025 Financial Results
MWN-AI** Summary
CW Bancorp has released its financial results for the third quarter of 2025, reporting a consolidated net income of $2.78 million, translating to $0.93 per diluted share. This reflects a decline from $3.13 million or $1.03 per share during the same period in 2024, marking a 9% decrease. The company experienced a similar downturn for the first nine months of 2025, with net income reaching $8.8 million, or $2.93 per share, down 4% year-over-year.
A significant factor negatively impacting the quarterly results was a one-time charge of $1.025 million related to a client fraud incident. Excluding this charge, net income for the quarter would have been $3.50 million, indicating a 14% year-over-year increase in EPS. Adjusted net income for the nine months increased by 6% to $9.52 million, or $3.17 per share.
Key performance metrics enhanced marginally, with an increase in net interest income of 8% in Q3 compared to the previous year, driven by a higher volume of loans. The net interest margin rose to 3.91% from 3.75%, supporting an overall interest income improvement of 3% in Q3. Meanwhile, provisions for credit losses were recorded at $100,000 for Q3.
Despite a total asset decrease of 4% year-over-year, driven by a drop in cash holdings, total loans increased by 8% to $808.8 million, indicating continued growth in lending activities. The bank maintained a strong capital position with a total risk-based capital ratio of 17.93%. Overall, while CW Bancorp faced challenges this quarter, it continues to focus on strategic growth and client services, emphasizing innovation and operational efficiency.
MWN-AI** Analysis
CW Bancorp's third quarter 2025 results reveal a complex picture of performance impacted by both operational strengths and a significant one-time charge due to fraud. The reported net income of $2.778 million (EPS of $0.93) reflects a decline compared to $3.131 million (EPS of $1.03) in the same quarter last year. However, when excluding the fraud-related charge, the financials illustrate a healthier core performance, with an adjusted EPS of $1.19, highlighting a 14% increase.
The bank demonstrated resilience with an 8% increase in total loans year-over-year, showcasing robust demand for lending services, while net interest income grew by 8% in the quarter. This growth indicates effective management of interest income despite a decrease in total assets and deposits, suggesting that CW Bancorp has successfully capitalized on lending opportunities while managing costs effectively.
With a return on assets (ROA) of 0.97% and a return on tangible equity (ROTE) of 12.60% (both figures improving when adjusted for the one-time charge), CW Bancorp remains on solid footing despite the challenges faced. The efficiency ratio has improved to 58.90% compared to 62.23% last year, emphasizing enhanced operational efficiency.
Investors should note the potential for recovery, indicated by the bank's strong capital ratios, which remain above regulatory requirements for a "well-capitalized" designation. While the decrease in non-interest income and total deposits raises caution, the bank's focus on increasing core deposits and expanding commercial lending relationships is promising.
Given these factors, investors may consider maintaining or cautiously increasing their positions in CW Bancorp as the bank continues to manage challenges pragmatically while aiming for future growth through strategic initiatives, including technological investments to enhance operational capabilities.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
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 | Interest | Yield / | Average | Interest | Yield / | ||||||
(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 | Interest | Yield / | Average | Interest | Yield / | ||||||
(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 % |
(1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate |
SOURCE CW Bancorp
FAQ**
How does the decrease in net income and earnings per share compare to the impact of the one-time charge related to fraud at CommerceWest Bank Na Ca CWBK for Q3 2025?
What strategies is CommerceWest Bank Na Ca CWBK implementing to recover from the 5% drop in total deposits reported for Q3 2025?
Considering the increase in net interest income, how does CommerceWest Bank Na Ca CWBK plan to leverage this growth to improve profitability in the coming quarters?
What specific measures will CommerceWest Bank Na Ca CWBK take to address the 32% decrease in non-interest income while enhancing client services?
**MWN-AI FAQ is based on asking OpenAI questions about Commercewest Bank Na Ca (OTC: CWBK).
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