#United States #Irvine #CW Bancorp #CommerceWest Bank #Ivo Tjan

CW Bancorp's Q3 2025 Financial Results

On October 31, 2025, CW Bancorp (OTCQX: CWBK), the holding company for CommerceWest Bank, shared its third-quarter financial results, reflecting a solid yet challenged performance. The report showcases a consolidated net income of $2.778 million, equivalent to $0.93 per diluted share—a decrease from the previous year's earnings of $3.131 million or $1.03 per share. This represents a 9% decline in earnings per share (EPS) compared to the same quarter in 2024.

In stark contrast to this performance was a notable one-time charge of $1.025 million due to a fraud incident involving a client. Excluding this charge, the bank would have reported a more favorable net income of $3.501 million, translating into an adjusted EPS of $1.19, which marks a 14% increase year-over-year, further emphasizing that CW Bancorp's underlying performance remains strong.

Key Financial Highlights

• - Net Income: $2.778 million for Q3 2025 vs. $3.131 million in Q3 2024
• - Adjusted EPS: $1.19 excluding one-time charges
• - Return on Assets (ROA): 0.97% (or 1.22% without the one-time charge)
• - Return on Tangible Equity (ROTE): 12.60% (or 15.87% without the one-time charge)

For the first nine months of 2025, net income was $8.795 million, averaging to $2.93 per diluted share, just shy of the $9.208 million at $2.99 per share reported for the previous year. The bank managed to achieve a 6% increase in EPS when excluding the one-time charge, yielding $3.17 per share.

Operational Highlights

Despite fluctuations in net income, CW Bancorp's total assets witnessed a 4% drop year-over-year, falling to $1.125 billion. Total loans saw an 8% increase, reflecting a growth to $808.8 million, showcasing the bank’s ability to enhance its loan portfolio while effectively managing asset levels.

In terms of assets and liabilities, non-interest-bearing deposits represented 58% of total deposits, solidifying a robust liquidity position even as total deposits fell 5% to $971.5 million.

In addition, net interest income for Q3 was reported at $10.837 million, an 8% increase from the previous year, translating to a net interest margin of 3.91%—a notable metric suggesting improved profitability in the bank’s lending strategies.

Management Commentary

The bank's Chairman and CEO, Ivo Tjan, expressed pride in the institution’s performance, especially considering the impact of the aforementioned one-time charge.