#Cashmere Valley Bank Reports Increased Quarterly Earnings
Cashmere Valley Bank, based in Cashmere, Washington, has announced its financial results for the second quarter of 2026, reporting earnings of $6.9 million. This figure represents a significant increase from the previous quarter, with diluted earnings per share reaching $1.88, reflecting a 22.1% rise over the first quarter of 2026.
For the first half of 2026, the bank's diluted earnings per share totaled $3.42, down slightly from $3.69 during the same period a year earlier. This year-to-date decline raises some concerns regarding sustained profitability, especially in light of increases in operational costs.
As of June 30, 2026, Cashmere Valley Bank reported gross loans amounting to $1.033 billion, a 6.3% increase from the previous year. Notably, the bank's deposits also grew impressively, reaching $1.963 billion, up 6.7% from June 30, 2025. This alignment in loan and deposit growth suggests robust overall financial health.
Despite the positive growth in earnings, non-interest expenses rose to $27.1 million for the first six months of 2026, an increase from $25.4 million in 2025. Significant factors contributing to this surge include rising salaries, equipment expenses, and increased state taxes. In terms of capital position, Tier 1 capital decreased slightly to $289.4 million, largely due to share repurchases totaling $24.6 million earlier this year.
The bank has also highlighted its future expansion efforts by announcing the upcoming construction of a new facility in East Wenatchee, slated to open in mid-2027. Additionally, the Board of Directors declared a cash dividend of $1.00 per share, set to be distributed on August 10, 2026, to shareholders of record by July 31, 2026.
Cashmere Valley Bank reported quarterly earnings of $6.9 million for the quarter ended June 30, 2026. This represents an increase in diluted earnings per share of $1.88, which is a 22.1% increase from the prior quarter's earnings.
As of June 30, 2026, Cashmere Valley Bank reported gross loans totalling $1.033 billion, an increase of 6.3% from the previous year. Deposit balances also increased, totalling $1.963 billion as of the same date, reflecting a 6.7% growth compared to the prior year.
Cashmere Valley Bank has announced plans to open a new facility in East Wenatchee along Grant Road, with an expected opening date in mid-2027.
The net interest margin for Cashmere Valley Bank was reported at 3.15% for the quarter ending June 30, 2026, compared to 3.23% in the same quarter of the previous year. While there was a slight improvement from the first quarter of 2026, the year-on-year decrease indicates some challenges.
For the first six months of 2026, Cashmere Valley Bank's non-interest expenses were reported at $27.1 million, compared to $25.4 million in the same period a year prior. Increases included salaries and benefits, occupancy and equipment expenses, and higher B&O tax expense due to changes in tax rates.
Cashmere Valley Bank's Board of Directors declared a cash dividend of $1.00 per share, scheduled to be payable on August 10, 2026, to shareholders of record by July 31, 2026.
Cashmere Valley Bank acknowledges that numerous factors can impact future earnings, including general economic conditions, interest rate fluctuations, deposit flows, and regulatory changes. These elements could lead to variability in management's expectations regarding future performance.
The allowance for credit losses on loans was reported at 1.12% of gross loans as of June 30, 2026, a slight decrease from 1.24% the previous year. The provision expense recorded during the second quarter was lower than the previous quarter's expenditure, indicating an improvement in loan performance.