Cashmere Valley Bank Achieves Record Earnings and Boosts Shareholder Dividends
Cashmere, Wednesday, 21 January 2026.
Reporting a record $29.2 million in 2025 earnings, Cashmere Valley Bank signals strong operational health by increasing its semi-annual dividend to $1.00 per share for investors.
Fiscal 2025 Performance Sets New Benchmarks
As the financial sector begins to digest the full scope of 2025’s economic landscape, Cashmere Valley Bank (OTCQX: CSHX) has emerged with a robust report card, announcing record annual earnings of $29.2 million for the fiscal year ending December 31, 2025 [1]. This performance represents a $1.1 million increase in net income compared to the previous year [1]. For shareholders, this bottom-line growth translated directly into improved earnings per share (EPS), which rose to $7.46 on a diluted basis [1]. This figure marks a 3.0% increase from the $7.24 EPS reported in 2024, signaling steady capital appreciation despite the shifting economic currents that defined the latter half of the year [1]. Greg Oakes, the bank’s President and CEO, characterized the results as extremely pleasing, underscoring the institution’s operational resilience [1].
Shareholder Returns: Dividends and Buybacks
Reflecting its strong capital position, the bank’s Board of Directors moved quickly to return value to investors. On January 20, 2026, the bank declared a semi-annual dividend of $1.00 per share [1]. This payment is scheduled for distribution on February 9, 2026, to shareholders of record as of January 30, 2026 [1]. While the bank stated this new rate represents a $0.05 increase over the semi-annual dividend paid in August 2025, investors should note the declared face value of $1.00 aligns with the previous payment amount cited in the announcement, creating a slight ambiguity regarding the exact baseline for the increase [1][alert! ‘Source text states the new $1.00 dividend is $0.05 higher than the previous $1.00 dividend, presenting a mathematical contradiction’]. Beyond dividends, the bank is actively managing its equity structure; recent reports confirm that Cashmere Valley Bank is undertaking a stock buyback program, intending to repurchase $15 million worth of shares under a tender offer [2]. This dual approach of cash dividends and share repurchases highlights a comprehensive strategy to leverage excess capital for shareholder benefit.
Balance Sheet Dynamics: Liquidity and Loan Trends
A closer look at the balance sheet reveals a strategic shift toward liquidity. As of December 31, 2025, cash and cash equivalents surged to $250.9 million, a significant increase of 31 million from the $219.9 million held at the end of 2024 [1]. This bolstered liquidity position was supported by a healthy rise in total deposits, which grew by $62.8 million to reach a total of $1.9 billion [1]. However, this influx of deposits did not translate into aggressive lending expansion. Gross loans actually contracted slightly, totaling $951.9 million at year-end, a decrease of $10.5 million from the prior year [1]. This divergence—rising cash and falling loan volumes—suggests a conservative allocation of capital in the current interest rate environment.
Operational Efficiency and Margins
The bank’s profitability was further supported by favorable shifts in its interest margins. During 2025, the average yield on earning assets improved to 4.72%, up from 4.66% in the prior year [1]. Simultaneously, the bank successfully managed its liabilities, seeing its cost of funds decrease marginally from 1.68% to 1.67% [1]. This widening spread between what the bank earns on assets and what it pays for funds is a critical driver of the record net income. However, these gains were partially offset by rising operational costs. Non-interest expenses climbed by 7.1%, or $3.4 million, primarily driven by a $2.7 million increase in salaries and benefits [1]. Additionally, the bank faced a higher tax burden, with federal income tax expense rising by $1.1 million to $6.9 million, resulting in an effective tax rate of 19.0%, up from 17.1% in 2024 [1].