Cashmere Valley Bank (OTCQX:CSHX) reported earnings of $7.4 million for the quarter ended September 30, 2026, compared with $7.7 million in the third quarter of 2025. Year-to-date earnings were $20.0 million, down from $22.1 million for the nine months ended September 30, 2025.
The announcement also marked the start of Len Devaisher’s tenure as CEO Elect. Greg Oakes, the bank’s President and CEO, said Devaisher will become President & CEO after Oakes retires on December 31, 2026.
#Earnings and deposits
Third-quarter diluted earnings per share were $2.02, an increase of $0.05 per share, or 2.5%, from the third quarter of 2025. Year-to-date diluted earnings per share were $5.43, a decrease of $0.23 per share, or 4.1%.
Deposit balances stood at $1.976 billion as of September 30, 2026. That was an increase of $75.2 million, or 4.0%, from December 31, 2025, and an increase of $78.6 million, or 4.1%, from the same period a year earlier.
The bank reported that its share of the market in the Chelan and Douglas County MSA was 44.95% as of June 30, 2026, an increase of 1.63 percentage points.
#Loan growth and credit measures
Gross loans reached $1.156 billion as of September 30, 2026. Loan balances increased $202.5 million from December 31, 2025 and $190.8 million from September 30, 2025.
Since December 31, 2025, increases included $41.0 million in commercial real estate loans, $33.5 million in dealer loans, $31.1 million in municipal loans, $18.3 million in adjustable-rate mortgages, $14.7 million in commercial loans and $10.4 million in equipment finance loans.
Loans represented 58.5% of deposits at September 30, 2026. The allowance for credit losses on loans was 1.02% of gross loans, compared with 1.26% one year earlier, while the allowance balance was $11.8 million versus $12.1 million.
Non-performing loans represented 0.23% of gross loans, down from 0.48% as of September 30, 2025. At the same time, year-to-date provision expense for credit losses increased to $3.0 million from $2.1 million. Third-quarter provision expense was $873,000. The bank said loan growth required a higher provision, while charge-off levels had decreased somewhat since the first quarter.
#Capital, liquidity and investments
GAAP capital was $243.1 million at September 30, 2026, and the equity-to-assets ratio was 10.3%. The bank said equity declined year over year because of share repurchases and higher unrealized losses on available-for-sale securities.
Unrealized losses increased from $44.6 million to $62.3 million at the end of the third quarter. The capital effect from unrealized losses on available-for-sale securities and swaps totaled $62.3 million.
Cash, cash equivalents and restricted cash totaled $135.1 million, compared with $270.0 million at September 30, 2025. The bank said much of its loan portfolio expansion had been funded from cash on hand.
The fair value of available-for-sale investments was $810.6 million, down $5.8 million from September 30, 2025. Held-to-maturity securities, net of allowance, totaled $118.5 million, compared with $124.8 million one year earlier.
Tier 1 capital was $293.7 million, compared with $294.7 million at September 30, 2025. Share repurchases totaling $24.6 million were completed during the first and second quarters of 2026. The bank’s GAAP capital-to-assets ratio was 10.4%, compared with 11.6% as of September 30, 2025.
#Interest income and operating expenses
Net interest income for the nine months ended September 30, 2026, was $52.4 million, compared with $50.4 million in the same period of 2025. The bank attributed the increase mainly to higher loan balances, which helped lift loan income by $2.5 million.
The nine-month net interest margin was 3.15%, compared with 3.20% in the prior-year period. For the third quarter, the margin was 3.25%, compared with 3.15% in the third quarter of 2025.
Non-interest income was $16.2 million for the first nine months of 2026, compared with $16.6 million in the same period of 2025. Non-interest expense increased to $40.7 million from $38.0 million. Salaries and benefits rose $1.3 million, or 5.7%.
Recruitment and retention costs related to the CEO transition totaled $545,000 in the third quarter. The bank said many of those costs would continue through year end before subsiding. The efficiency ratio was 59.3% for the first nine months of 2026, compared with 56.8% in the same period of 2025.
Year-to-date return on assets was 1.17%, down from 1.37% in the prior year. Return on equity for the first nine months was 10.36%, compared with 12.24% one year earlier. The bank said the decline in return on equity reflected lower net income and a higher year-to-date average equity balance.
#Leadership transition and East Wenatchee branch
Len Devaisher has joined Cashmere Valley Bank as CEO Elect. He is scheduled to assume the President & CEO role after Greg Oakes’s retirement on December 31, 2026.
Construction has begun on a full-service branch along Grant Road in East Wenatchee. The bank expects the facility to open in the first half of 2027.
#Cashmere Valley Bank operations
Cashmere Valley Bank was established September 24, 1932. It has 11 retail offices in Chelan, Douglas, Kittitas and Yakima Counties, as well as a municipal lending office in King County.
The bank provides business and personal banking, commercial lending, insurance services through Mitchell, Reed & Schmitten Insurance, investment services, mortgage services, equipment lease financing, auto and marine dealer financing and municipal lending.
#Key Takeaways
- Cashmere Valley Bank reported $7.4 million in third-quarter earnings and $20.0 million year to date.
- Year-to-date diluted earnings per share fell to $5.43, while third-quarter diluted earnings per share rose to $2.02.
- Deposits reached $1.976 billion and gross loans totaled $1.156 billion as of September 30, 2026.
- Len Devaisher began as CEO Elect and is scheduled to become President & CEO after Greg Oakes retires on December 31, 2026.
- Construction is underway on an East Wenatchee branch that the bank expects to open in the first half of 2027.
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