CW Bancorp Reports Third Quarter 2025 Financial Results

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%.

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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 September30, 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 endingSeptember 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 September30, 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 onlinebanking, mobile banking, lines of credit, M&A / working capital loans, commercial real estate loans, SBA loans and treasury managementservices.

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)ASSETSCash 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' EQUITYNon-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 3,000,598Book value per share $ 33.89 $ 30.75Total loans to total deposits 83.25% 73.23%ACL to total loans 1.37% 1.53%Nonperforming assets (non-accrual loans & OREO) $ 8,560 $ 5,678COMMERCEWEST 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 BANCORPCONSOLIDATED 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 INCOMELoans $ 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 EXPENSEDeposits 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 INCOMEService 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 BANCORPCONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS Three Months Ended September 30, 2025 2024 Average Interest Yield / Average Interest Yield / Balance Income / Cost Balance Income / Cost Expense Expense (dollars in thousands)INTEREST EARNING ASSETSInt 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 57,526Total assets $ 1,140,669 $ 1,124,965INTEREST EARNING LIABILITIESInterest 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 liabilitiesDemand Deposits 567,751 556,290Other Liabilities 12,867 13,857Shareholders' Equity 90,567 82,706Total liabilities and shareholder's equity $ 1,140,669 $ 1,124,965Net 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 rateCW BANCORPCONSOLIDATED AVERAGE BALANCE SHEET and YIELD ANALYSIS Nine Months Ended September 30, 2025 2024 Average Interest Yield / Average Interest Yield / Balance Income / Cost Balance Income / Cost Expense Expense (dollars in thousands)INTEREST EARNING ASSETSInt 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 52,431Total assets $ 1,119,169 $ 1,078,682INTEREST EARNING LIABILITIESInterest 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 liabilitiesDemand Deposits 553,038 553,652Other Liabilities 12,685 13,966Shareholders' Equity 88,775 80,527Total liabilities and shareholder's equity $ 1,119,169 $ 1,078,682Net 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

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SOURCE CW Bancorp

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