Cashmere Valley Bank Reports Record Full-Year Earnings and Declares Increased Dividend for 2026

CASHMERE, Washington — January 20, 2026 — Cashmere Valley Bank (OTCQX: CSHX), a community-focused financial institution serving Central Washington, announced today that it achieved record annual earnings of $29.2 million for the fiscal year ended December 31, 2025, representing a notable increase over prior results. The Bank also declared an increased semi-annual dividend to shareholders, reflecting strong financial performance and confidence in future growth.

Annual Earnings Highlights for Fiscal Year 2025

The Bank’s net income rose to $29.2 million in 2025, an increase over the prior year’s results. Diluted earnings per share (EPS) reached $7.46, up from the previous year’s $7.24 per share, demonstrating enhanced profitability and shareholder return.

Key financial highlights included:

• Net income of $29.2 million for the year ending December 31, 2025.
• Fourth quarter net income totaled $7.1 million.
• Diluted earnings per share increased by approximately 3% year-over-year.
• Net interest margin improved to 3.21% compared with 3.14% in 2024.
• Cash and cash equivalents increased to $250.9 million by the end of 2025.

Despite challenges in the broader financial environment, Cashmere Valley Bank maintained strong operational performance throughout the year, driven by disciplined management of its loan and investment portfolios.

Dividend Increase and Shareholder Returns

The Bank’s Board of Directors declared a semi-annual dividend of $1.00 per share, which will be paid to shareholders of record on January 30, 2026, with payment on February 9, 2026. This dividend represents an increase of $0.05 per share compared to the dividend declared in August 2025, reinforcing the Bank’s commitment to delivering long-term value for its investors.

CEO Commentary

Greg Oakes, President and Chief Executive Officer of Cashmere Valley Bank, commented on the strong results, noting that the Bank’s earnings performance reflects solid execution of its growth strategy and continued focus on financial resilience. He emphasized ongoing opportunities and challenges, including navigating changes in the interest rate environment and managing the Bank’s indirect lending portfolio.

Balance Sheet and Liquidity Trends

As of December 31, 2025, the Bank reported a significant increase in cash balances to $250.9 million, up from $219.9 million at the end of 2024. The stability and growth in deposits throughout the year contributed to stronger liquidity and flexibility to support loan activity and investment purchases.

Cashmere Valley Bank also made strategic purchases of available-for-sale (AFS) securities during 2025. The fair value of the Bank’s AFS portfolio increased due in part to security purchases and reduced unrealized losses, while sales of certain securities supported revenue activity in the year.

Loan Portfolio and Credit Quality

Total gross loans were reported at approximately $951.9 million at year-end 2025, slightly below the 2024 level due to loan payoffs in certain segments, including multifamily and municipal loans. Despite this, the Bank maintained a strong credit quality profile with an allowance for credit losses that remained consistent with industry best practices.

Outlook and Future Strategy

Looking ahead, Cashmere Valley Bank plans to continue focusing on core banking operations while managing strategic initiatives that support revenue diversification and operational efficiency. With improved net interest margins and a prudent approach to liquidity and risk management, the Bank is positioned to navigate evolving economic conditions in 2026 and beyond.

In closing, the Bank’s strong performance in 2025 — highlighted by record earnings and enhanced shareholder returns — underscores its role as a trusted financial institution deeply rooted in community banking and committed to long-term success.

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