- Cashmere Valley Bank (CSHX, Financial) reported Q1 2025 earnings of $6.4 million, a 12.3% decrease from the previous year.
- Gross loans declined by 7.1% year-over-year to $967.4 million, while deposits grew by 2.5% to $1.83 billion.
- The bank's Tier 1 capital increased 7.9% year-over-year to $281.9 million, with a net interest margin improvement to 3.17%.
Cashmere Valley Bank (OTCQX: CSHX) announced its first quarter earnings for 2025, reporting a net income of $6.4 million, with diluted earnings per share (EPS) at $1.64. This marks a 12.3% decrease compared to the same quarter in the previous year, attributed to increases in loan loss provision and tax expenses.
Gross loans amounted to $967.4 million, reflecting a $74.0 million, or 7.1%, year-over-year decline. However, there was a marginal increase in loan balances of $5.0 million since the end of 2024. In contrast, deposits rose by $44.9 million, or 2.5%, reaching $1.83 billion as of March 31, 2025, with a significant portion, 21.1%, being non-interest deposits.
The bank reported a decline in key performance metrics with its return on assets (ROA) decreasing from 1.44% to 1.23% and return on equity (ROE) dropping from 14.4% to 11.1%. Despite these decreases, the bank maintained strong credit quality, holding non-performing loans steady at 0.34% of gross loans.
Net interest income saw a positive trend, increasing to $16.2 million from $15.6 million year-over-year, supported by an 8 basis point improvement in yields on earning assets. The net interest margin also saw an enhancement, rising to 3.17% from 3.12% in the previous year. Meanwhile, Cashmere Valley's Tier 1 capital grew 7.9% to $281.9 million, bolstered by earnings less dividends paid.
During Q1 2025, Cashmere Valley Bank paid a semi-annual dividend of $0.90 per share. Looking ahead, the bank is optimistic about its future prospects, underscored by strategic moves such as the ongoing development of a new property in East Wenatchee, expected to open in 2026.
