Cashmere Valley Bank Reports Increased Quarterly Earnings of $6.9 million, Year to Date Earnings of $12.7 million
CASHMERE, WA / ACCESS Newswire / July 22, 2026 /Cashmere Valley Bank (OTCQX:CSHX) ( "Bank "), announced quarterly earnings of $6.9 million for the quarter ended June 30, 2026. Diluted earnings per share totaled $1.88, which represented an increase of $0.34 per share, or 22.1% from the quarter ended March 31, 2026. Year to date diluted earnings per share were $3.42 as compared to $3.69 one year ago.
"The second quarter reflected a strong rebound from the first quarter. Along with the improvement in earnings, we are very pleased with our balance sheet growth in 2026, " said Greg Oakes, President and CEO. "Loan and deposit totals are both above our expectations entering the year. We are also thrilled to report that we broke ground on our upcoming East Wenatchee facility along Grant Road. We expect that facility to open in the middle part of 2027. "
The Bank reported the following statement of condition highlights as of June 30, 2026:
As of June 30, 2026, gross loans totaled $1.033 billion, which represented an increase from June 30, 2025 of $61.7 million, or 6.3%. The Bank experienced loan growth in 2026 as loan balances increased $81.5 million, or 8.6%, since December 31, 2025.
Deposit balances totaled $1.963 billion as of June 30, 2026. Deposit balances increased $123.6 million, or 6.7%, from June 30, 2025. Deposit balances increased from December 31, 2025 by $62.0 million, or 3.3%. Non-interest deposits totaled $420.0 million as of June 30, 2026, which represented 21.4% of total deposits.
Quarterly return on assets increased to 1.21% from 1.04%, due to the increase in net income.
Quarterly return on equity increased to 10.8% from 9.0%, due to reduced net income along with a decreasing equity base, primarily from share repurchases.
Common stock 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.
At the July 21, 2026 Board of Director 's meeting, the Bank 's Board of Directors declared a cash dividend of $1.00 per share. The dividend will be payable on August 10, 2026 to shareholders of record July 31, 2026.
Cash, Cash Equivalents and Restricted Cash
Total cash, cash equivalents and restricted cash totaled $233.0 million at June 30, 2026, compared to $210.1 million at June 30, 2025. The $22.9 million increase was largely due to the rather significant deposit growth observed over the prior twelve months.
Investments
The investment portfolio, net of the held to maturity allowance, totaled $962.6 million at June 30, 2026, which was an increase of $41.8 million from June 30, 2025. As of June 30, 2026, available for sale securities totaled $841.8 million and held to maturity securities, net of the allowance, totaled $120.8 million. Unrealized losses on available for sale securities decreased from $53.1 million at June 30, 2025 to $45.7 million as of June 30, 2026.
During the second quarter of 2026, a loss on sale of available for sale securities of $9,000 was recorded as part of a bond portfolio restructure. Proceeds from the 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 $61.7 million from June 30, 2025, reaching $1.033 billion as of June 30, 2026. Gross loan totals increased $81.5 million from December 31, 2025. Loan growth was reflected in several diverse loan categories. Since December 31, 2025, commercial real estate loans increased $25.3 million, commercial loans increased $13.2 million, in-house adjustable-rate mortgages improved by $12.2 million, municipal loans increased $9.4 million, dealer paper improved by $9.6 million, multifamily loans were up $7.9 million, and equipment finance loans increased $7.2 million
The allowance for credit losses on loans (ACL) was 1.12% of gross loans as compared to 1.24% one year ago. During the second quarter of 2026, the Bank recorded $727,000 million in provision expense as compared to $1.4 million in the prior quarter and $517,000 in the second quarter of 2025. The allowance balance totaled $11.5 million as of June 30, 2026.
Non-performing loan totals decreased slightly from the prior quarter and represented 0.35% of gross loans as of June 30, 2026.
Deposits
Deposits totaled $1.963 billion at June 30, 2026, which represented an increase of $123.6 million, or 6.7%, from the prior year. Year to date, the average cost of funds decreased from the prior year at 1.65% to 1.61% as of June 30, 2026. Certificate of deposit balances increased $56.5 million over the past twelve months, however, certificate of deposit balances decreased slightly during the second quarter of 2026 by $2.8 million.
Equity
Tier 1 capital remains strong. Tier 1 capital decreased to $289.4 million as of June 30, 2026, which represented a decrease of 0.3% from $290.3 million at June 30, 2025. Tier 1 capital was reduced by $914,000 between the two periods due to common stock share repurchases.
As of June 30, 2026, GAAP capital increased $8.6 million from June 30, 2025, or 3.4%. The Bank 's GAAP equity to assets remained strong at 11.13% as of June 30, 2026 as compared to 11.38% as of June 30, 2025.
Earnings
Net Interest Income
For the six months ended, June 30, 2026, net interest income totaled $34.1 million compared to $33.0 million in the same period in 2025. For those six months, interest income increased $753,000 from loans, $631,000 from available for sale and held to maturity securities and $388,000 from cash balances. Interest income growth was partially offset by an increase in interest expense of $718,000 as compared to the six months ended June 30, 2025.
For the quarter ending June 30, 2026, net interest income increased $796,000 from the quarter ended March 31, 2026. Loan income increased $780,000 over the prior quarter.
The net interest margin was 3.10% for the first six months of 2026, compared to 3.20% during the first six months of 2025. For the quarter ending June 30, 2026 the net interest margin was 3.15% as compared to 3.23% in the second quarter of 2025. The Bank 's quarterly net interest margin showed improvement of ten basis points as compared to the first quarter of 2026.
Non-Interest Income
Non-interest income totaled $10.9 million in the first six months of 2026 as compared to $11.1 million in the first six months of 2025. Non-interest income from brokerage commissions at Cashmere Valley Wealth Management decreased $314,000.
Non-Interest Expense
Non-interest expense totaled $27.1 million in the first six months of 2026, as compared to $25.4 million in the first six months of 2025. Salaries and benefits increased $490,000, or 3.3%. Occupancy and equipment increased $194,000 largely due to the investment in non-depreciable investments at the Bank 's facilities. The State of Washington increased B&O tax rates that increased the Bank 's B&O tax expense by $219,000 as compared to the prior year.
The Bank 's efficiency ratio was 60.2% in the first six months of 2026 as compared to 57.7% in the first six months of 2025.
Income tax expense increased from $2.9 million in 2025 to $3.0 million in 2026.
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, (509) 782-2092 or
Mike Lundstrom, CFO, (509) 782-5495
Consolidated Balance Sheets (UNAUDITED)
(Dollars in Thousands)
Cashmere Valley Bank and Subsidiary
June 30, 2026 | March 31, 2026 | June 30, 2025 | ||||||||||
Assets | ||||||||||||
Cash and Cash Equivalent: | ||||||||||||
Cash & due from banks | $ | 28,854 | $ | 24,654 | $ | 33,936 | ||||||
Interest bearing deposits | 199,465 | 234,279 | 172,379 | |||||||||
Fed funds sold | 4,630 | 4,374 | 3,742 | |||||||||
Total Cash and Cash Equivalent | 232,949 | 263,307 | 210,057 | |||||||||
Securities available for sale | 841,798 | 858,446 | 794,155 | |||||||||
Securities held to maturity, net of allowance for credit losses of $11, $12 and $15, respectively | 120,758 | 122,139 | 126,587 | |||||||||
Federal Home Loan Bank stock, at cost | 5,009 | 5,054 | 5,053 | |||||||||
Loans held for sale | 4 | 328 | 504 | |||||||||
Loans | 1,033,361 | 971,887 | 971,669 | |||||||||
Allowance for credit losses | (11,547 | ) | (11,384 | ) | (12,019 | ) | ||||||
Net loans | 1,021,814 | 960,503 | 959,650 | |||||||||
Premises and equipment | 19,022 | 18,904 | 19,715 | |||||||||
Accrued interest receivable | 8,429 | 9,141 | 8,721 | |||||||||
Other real estate and foreclosed assets | 97 | 97 | 97 | |||||||||
Bank Owned Life Insurance | 27,819 | 27,580 | 28,080 | |||||||||
Goodwill | 7,661 | 7,661 | 7,579 | |||||||||
Intangibles, net | 2,292 | 2,462 | 2,367 | |||||||||
Mortgage servicing rights | 2,328 | 2,355 | 2,386 | |||||||||
Net deferred tax assets | 13,589 | 13,525 | 16,554 | |||||||||
Other assets | 13,265 | 9,495 | 10,023 | |||||||||
Total assets | $ | 2,316,834 | $ | 2,300,997 | $ | 2,191,528 | ||||||
Liabilities and Shareholders ' Equity | ||||||||||||
Liabilities | ||||||||||||
Deposits: | ||||||||||||
Non-interest bearing demand | $ | 419,516 | $ | 407,167 | $ | 397,399 | ||||||
Savings and interest-bearing demand | 948,003 | 938,174 | 902,986 | |||||||||
Time | 595,247 | 598,011 | 538,795 | |||||||||
Total deposits | 1,962,766 | 1,943,352 | 1,839,180 | |||||||||
Accrued interest payable | 2,882 | 2,867 | 2,963 | |||||||||
Borrowings | 81,000 | 82,000 | 84,000 | |||||||||
Other liabilities | 12,295 | 13,565 | 16,076 | |||||||||
Total liabilities | 2,058,943 | 2,041,784 | 1,942,219 | |||||||||
Shareholders ' Equity | ||||||||||||
Common stock (no par value); authorized 10,000,000 shares; | ||||||||||||
Issued and outstanding: 6/30/2026 -- 3,630,214 ; 3/31/2026 -- 3,713,761 ; 6/30/2025 -- 3,900,683 | -- | -- | -- | |||||||||
Additional paid-in capital | 8,843 | 6,667 | 5,789 | |||||||||
Treasury stock | (41,340 | ) | (31,784 | ) | (16,784 | ) | ||||||
Retained Earnings | 332,386 | 325,737 | 312,542 | |||||||||
Other comprehensive income | (43,278 | ) | (42,634 | ) | (53,095 | ) | ||||||
Total Cashmere Valley Bank shareholders ' equity | 256,611 | 257,986 | 248,452 | |||||||||
Noncontrolling interest | 1,280 | 1,227 | 857 | |||||||||
Total shareholders ' equity | 257,891 | 259,213 | 249,309 | |||||||||
Total liabilities and shareholders ' equity | $ | 2,316,834 | $ | 2,300,997 | $ | 2,191,528 |
Quarterly Consolidated Statements of Income (UNAUDITED)
(Dollars in Thousands)
Cashmere Valley Bank & Subsidiary
For the quarters ended, | ||||||||||||
June 30, 2026 | March 31, 2026 | June 30, 2025 | ||||||||||
Interest Income | ||||||||||||
Loans and leases | $ | 13,936 | $ | 13,156 | $ | 13,506 | ||||||
Fed funds sold and deposits at other financial institutions | 1,859 | 2,059 | 1,573 | |||||||||
Securities available for sale: | ||||||||||||
Taxable | 8,569 | 8,201 | 8,375 | |||||||||
Tax-exempt | 349 | 449 | 356 | |||||||||
Securities held to maturty: | ||||||||||||
Taxable | 726 | 726 | 748 | |||||||||
Tax-exempt | 25 | 25 | 25 | |||||||||
Other interest income | -- | -- | -- | |||||||||
Total interest income | 25,464 | 24,616 | 24,583 | |||||||||
Interest Expense | ||||||||||||
Deposits | 7,254 | 7,199 | 7,041 | |||||||||
Borrowings | 781 | 784 | 748 | |||||||||
Total interest expense | 8,035 | 7,983 | 7,789 | |||||||||
Net interest income | 17,429 | 16,633 | 16,794 | |||||||||
Provision for Credit Losses | 727 | 1,424 | 517 | |||||||||
Net interest income after provision for credit losses | 16,702 | 15,209 | 16,277 | |||||||||
Non-Interest Income | ||||||||||||
Service charges on deposit accounts | 554 | 527 | 536 | |||||||||
Mortgage banking operations | 370 | 376 | 429 | |||||||||
Net gain (loss) on sales of securities available for sale | (9 | ) | 55 | -- | ||||||||
Brokerage commissions | 48 | 203 | 238 | |||||||||
Insurance commissions and fees | 2,475 | 2,635 | 2,482 | |||||||||
Net interchange income | 1,066 | 1,113 | 1,024 | |||||||||
Earnings from Bank Owned Life Insurance | 240 | 236 | 218 | |||||||||
Dividends from correspondent banks | 152 | 162 | 101 | |||||||||
Other | 411 | 297 | 323 | |||||||||
Total non-interest income | 5,307 | 5,604 | 5,351 | |||||||||
Non-Interest Expense | ||||||||||||
Salaries and employee benefits | 7,516 | 8,066 | 7,334 | |||||||||
Occupancy and equipment | 1,055 | 839 | 832 | |||||||||
Audits and examinations | 120 | 241 | 190 | |||||||||
State and local business and occupation taxes | 489 | 476 | 383 | |||||||||
FDIC insurance & WA state assessments | 276 | 303 | 256 | |||||||||
Legal and professional fees | 358 | 431 | 330 | |||||||||
Net (gain) on foreclosed real estate | -- | (94 | ) | -- | ||||||||
Check losses and charge-offs | 156 | 114 | 110 | |||||||||
Low-income housing investment losses | 70 | 45 | (315 | ) | ||||||||
Data processing | 1,772 | 1,752 | 1,738 | |||||||||
Product delivery | 359 | 396 | 269 | |||||||||
Other | 1,249 | 1,097 | 1,077 | |||||||||
Total non-interest expense | 13,420 | 13,666 | 12,204 | |||||||||
Income before income taxes | 8,589 | 7,147 | 9,424 | |||||||||
Income Taxes | 1,670 | 1,302 | 1,379 | |||||||||
Net income | 6,919 | 5,845 | 8,045 | |||||||||
Net income attributable to noncontrolling interest | 52 | 49 | 47 | |||||||||
Net income attributable to Cashmere Valley Bank | $ | 6,867 | $ | 5,796 | $ | 7,998 | ||||||
Earnings Per Share | ||||||||||||
Basic | $ | 1.89 | $ | 1.55 | $ | 2.05 | ||||||
Diluted | $ | 1.88 | $ | 1.54 | $ | 2.04 |
Year-to-Date Consolidated Statements of Income (UNAUDITED)
(Dollars in Thousands)
Cashmere Valley Bank & Subsidiary
For the six months ended, | ||||||||
June 30, 2026 | June 30, 2025 | |||||||
Interest Income | ||||||||
Loans and leases | $ | 27,093 | $ | 26,340 | ||||
Fed funds sold and deposits at other financial institutions | 3,918 | 3,530 | ||||||
Securities available for sale: | ||||||||
Taxable | 16,769 | 16,191 | ||||||
Tax-exempt | 798 | 688 | ||||||
Securities held to maturity: | ||||||||
Taxable | 1,452 | 1,511 | ||||||
Tax-exempt | 51 | 49 | ||||||
Other interest income | -- | -- | ||||||
Total interest income | 50,081 | 48,309 | ||||||
Interest Expense | ||||||||
Deposits | 14,454 | 14,152 | ||||||
Borrowings | 1,565 | 1,149 | ||||||
Total interest expense | 16,019 | 15,301 | ||||||
Net interest income | 34,062 | 33,008 | ||||||
Provision for Credit Losses | 2,152 | 1,278 | ||||||
Net interest income after provision for credit losses | 31,910 | 31,730 | ||||||
Non-Interest Income | ||||||||
Service charges on deposit accounts | 1,081 | 1,033 | ||||||
Mortgage banking operations | 746 | 780 | ||||||
Net gain (loss) on sales of securities available for sale | 45 | 130 | ||||||
Brokerage commissions | 251 | 565 | ||||||
Insurance commissions and fees | 5,110 | 5,149 | ||||||
Net interchange income | 2,179 | 2,162 | ||||||
Earnings from Bank Owned Life Insurance | 476 | 433 | ||||||
Dividends from correspondent banks | 314 | 210 | ||||||
Other | 709 | 610 | ||||||
Total non-interest income | 10,911 | 11,072 | ||||||
Non-Interest Expense | ||||||||
Salaries and employee benefits | 15,582 | 15,092 | ||||||
Occupancy and equipment | 1,894 | 1,700 | ||||||
Audits and examinations | 361 | 437 | ||||||
State and local business and occupation taxes | 964 | 741 | ||||||
FDIC insurance & WA state assessments | 579 | 523 | ||||||
Legal and professional fees | 789 | 577 | ||||||
Net (gain) on foreclosed real estate | (94 | ) | -- | |||||
Check losses and charge-offs | 270 | 228 | ||||||
Low-income housing investment losses | 114 | (157 | ) | |||||
Data processing | 3,524 | 3,506 | ||||||
Product delivery | 755 | 633 | ||||||
Other | 2,346 | 2,137 | ||||||
Total non-interest expense | 27,084 | 25,417 | ||||||
Income before income taxes | 15,737 | 17,385 | ||||||
Income Taxes | 2,972 | 2,881 | ||||||
Net income | 12,765 | 14,504 | ||||||
Net income attributable to noncontrolling interest | 101 | 95 | ||||||
Net income attributable to Cashmere Valley Bank | $ | 12,664 | $ | 14,409 | ||||
Earnings Per Share | ||||||||
Basic | $ | 3.44 | $ | 3.70 | ||||
Diluted | $ | 3.42 | $ | 3.69 |
SOURCE: Cashmere Valley Bank
View the original press release on ACCESS Newswire
© 2026 ACCESS Newswire. All Rights Reserved.
