Gateway Bank, F.S.B. Reports Second Quarter 2026 Results; Loan Growth up 35% Year Over Year

Tuesday, July 28, 2026 · 8:30 AM ET GlobeNewswire

OAKLAND, Calif., July 28, 2026 (GLOBE NEWSWIRE) -- Gateway Bank, F.S.B. (OTCPK: GWBK) (“the Bank”) today announced a net loss of $171,000 for the second quarter of 2026. This compared to a net loss of $336,000 in the preceding quarter, and a net loss of $827,000 in the second quarter of 2025. Net interest margin expansion and solid loan growth drove improved operating results compared to both the prior quarter and year-ago period. In the first six months of 2026 the Bank reported a net loss of $507,000, compared to a net loss of $1.79 million in the first six months of 2025. All financial results are unaudited.

“Second quarter results reflect the continued progress we are making across the Bank, and we are encouraged by how much closer that momentum is bringing us to sustained profitability,” said Mukhtar Ali, President and CEO. “A key driver of our new business this quarter has been the addition of Tom Rodriguez and his underwriting team, whose construction lending expertise is already paying off. We booked our first credit under the team shortly after they joined in the second quarter, and we have a robust pipeline of construction credits we expect to fund throughout the rest of the year. Beyond construction, we have seen significant loan growth in multifamily and non-farm, non-residential real estate over the first and second quarters, more than doubling in certain areas compared to a year ago. Construction, meanwhile, is an area where we started from a modest base last year, and it’s one where we plan to keep focusing our growth, alongside continued momentum in multifamily and non-farm, non-residential real estate, while our 1-4 single family portfolio remains stable.”

“Net interest margin for the second quarter included some one-time interest and fee items on loans, including a recovery of nonaccrual interest that pushed our margin over 3%. We expect that to moderate going forward – higher than where we started the year, but below where we ended in June. That said, the underlying growth in net interest income tied to loans returning to accrual status is real, even though it skewed our second quarter results somewhat. On the funding side, our cost of funds has stabilized after a period of improvement, consistent with broader market trends, and we expect to hold steady over the next few quarters while focusing on growing yields on earning assets to continue improving our margin,” said Ali.

Second Quarter and Year to Date 2026 Highlights:

Net interest income increased 41.8% to $2.15 million in the second quarter of 2026, compared to $1.51 million in the first quarter of 2026, and increased 81.0% compared to $1.19 million in the second quarter of 2025. In the first six months of 2026, net interest income increased 50.9% to $3.66 million, compared to $2.42 million in the first six months of 2025.
The Bank reported a net loss of $171,000 for the second quarter of 2026, compared to net loss of $336,000 for the first quarter of 2026, and a net loss of $827,000 for the second quarter of 2025. Year to date, the Bank reported a net loss of $507,000, compared to a net loss of $1.79 million in the same period one year earlier.
Total revenue, consisting of net interest income before the provision for credit losses, plus non-interest income, increased 41.6% to $2.17 million in the second quarter of 2026, compared to $1.53 million in the preceding quarter and increased 82.9% compared to $1.19 million in the second quarter a year ago. In the first six months of 2026, total revenue increased 55.4% to $3.71 million, compared to $2.38 million in the first six months of 2025.
Net interest margin was 3.05% in the second quarter of 2026, compared to 2.23% in the preceding quarter and 1.91% in the second quarter a year ago. The 82 basis point increase in net interest margin during the second quarter was driven by an improved cost of funds and stable earning asset yields compared to the linked quarter. The increase also reflected a one-time recovery of nonaccrual interest, which is not expected to recur in future quarters.
Non-interest expense increased 19.5% to $2.23 million in the second quarter of 2026, compared to $1.87 million in the preceding quarter, and increased 7.5% when compared to $2.08 million in the second quarter a year ago. Salaries and employee benefits, which make up the largest component of non-interest expense, rose mainly due to the new commercial lending team joining the bank during the prior quarter. That increase was partially offset by lower occupancy costs and a reduction in other non-interest expenses.
Average assets for the quarter totaled $287.7 million, an increase of $14.4 million, or 5.3% from the prior quarter, and an increase of $37.8 million, or 15.1% from the year ago quarter. Total assets increased nominally to $288.2 million at June 30, 2026, compared to $286.5 million at March 31, 2026, and increased $42.0 million, or 17.1% compared to $246.2 million at June 30, 2025.
Average total gross loans for the second quarter of 2026 increased $25.2 million, or 11.8% to $237.9 million, compared to $212.7 million in the first quarter of 2026, and increased $54.0 million, or 29.4% from $183.9 million in the second quarter of 2025. Total loans at June 30, 2026, increased 5.9% during the quarter to $246.5 million from $232.7 million at March 31, 2026, and increased 35.1% compared to $182.4 million at June 30, 2025.
Average second quarter 2026 total deposits decreased nominally to $203.4 million, from $204.5 million in the preceding quarter, and decreased 9.0% from $223.4 million in the second quarter a year ago. Total deposits increased nominally to $204.1 million, at June 30, 2026, compared to $202.3 million at March 31, 2026, and decreased $15.9 million, or 7.2% compared to $220.0 million at June 30, 2025.
Largely due to robust loan growth during the quarter, the Bank recorded a $110,000 provision for credit losses in the second quarter of 2026, compared to a $2,000 provision in the first quarter of 2026. In the first quarter of 2025 the Bank recorded a $63,000 credit to the provision for credit losses.
Allowance for credit losses, as a percentage of total loans, was 1.07% at June 30, 2026, compared to 1.09% at March 31, 2026, and 1.38% at June 30, 2025.
Nonperforming loans improved to $610,000 at June 30, 2026, compared to $5.76 million at March 31, 2026, and $3.04 million a year ago.
There were no net charge-offs in the second quarter of 2026, or in the prior quarter or year ago quarter.
The Bank’s capital levels remained above the threshold for well-capitalized institutions with a Community Bank Leverage Ratio of 13.84% at June 30, 2026.

“We remain deeply committed to the communities we serve, and this quarter’s strong engagement across both our longstanding Chinatown market and our growing presence in Walnut Creek reflects that dedication. We are proud to support the continued growth of these communities and the relationships we have built there,” said Ali. Earlier this year, the Bank celebrated the grand opening of its relocated Walnut Creek branch at 1801 N. California Blvd, Suite 101. The full-service location sits just a block from the Walnut Creek BART station, across from the business district, and offers parking beneath the building.

About Gateway Bank, F.S.B. Gateway Bank is a Federally-chartered savings bank headquartered in Oakland, California and began operations on June 8, 1990. The Bank currently operates out of its offices located in Oakland’s Chinatown and Walnut Creek, and offers banking services to individuals and businesses in the San Francisco Bay Area.

Gateway Bank, FSB
Balance Sheets
Unaudited
	Jun 30 2026			Mar 31 2026			Dec 31 2025			Sep 30 2025			Jun 30 2025
Assets
Cash and due from banks		1,852,376			1,828,608			1,629,783			1,285,211			1,940,726
Fed funds sold		-			128,881			-			-			-
Interest bearing deposits with banks		7,205,836			16,054,308			9,150,342			15,358,735			22,126,902
Total cash and equivalents		9,058,212			18,011,797			10,780,125			16,643,946			24,067,628

Investment securities, AFS		23,913,699			27,456,099			27,839,840			30,557,274			33,164,921
FHLB Stock and Other Investments		2,158,600			2,061,200			2,061,200			2,061,200			2,061,200

1-4 family residential		163,716,451			161,339,952			161,718,113			134,471,362			140,800,113
Multifamily residential		22,630,690			21,624,467			12,935,464			13,002,960			9,334,581
Non-farm, non-residential real estate		56,526,390			45,360,554			36,071,404			28,854,756			29,032,759
Construction		2,077,420			-			-			-			-
Commercial and industrial		1,535,966			4,356,480			4,366,320			3,134,343			3,279,098
Consumer and other		3,134			-			410			59			342
Loans, net of unearned income		246,490,051			232,681,453			215,091,711			179,463,480			182,446,893
Allowance for Credit Losses-Loans		(2,639,477	)		(2,543,007	)		(2,540,065	)		(2,531,061	)		(2,520,472	)
Total loans, net		243,850,574			230,138,446			212,551,646			176,932,419			179,926,421

Premises and equipment, net		889,335			800,400			695,171			602,114			366,162
Accrued interest receivable		1,434,070			1,231,367			1,162,055			1,156,714			1,227,080
Other assets		6,912,319			6,830,271			5,376,047			5,073,847			5,372,032

Total Assets	$	288,216,809		$	286,529,580		$	260,466,084		$	233,027,514		$	246,185,444

Liabilities
Non-Interest Bearing Deposits		8,025,908			8,365,308			9,641,094			9,165,121			8,243,872
Interest bearing demand deposits		6,086,803			5,787,575			6,793,724			7,025,056			5,767,092
Savings and Money Market Deposits		28,692,325			26,064,932			27,470,224			19,978,923			20,844,299
Time Deposits - Retail		149,313,715			150,125,894			147,156,815			159,529,226			167,156,792
Time Deposits - Wholesale		11,976,568			11,972,512			11,968,456			11,964,400			17,959,411
Total Deposits		204,095,319			202,316,221			203,030,313			207,662,726			219,971,466

Borrowings		43,000,000			43,000,000			33,000,000			-			-
Accrued expenses and other liabilities		3,940,874			3,871,641			2,346,532			2,380,514			2,741,604
Total Liabilities		251,036,193			249,187,862			238,376,845			210,043,240			222,713,070

Equity
Common stock		53,763,103			53,763,103			26,991,436			26,991,436			26,991,436
Capital surplus		24,771,345			24,665,279			35,972,894			35,962,369			35,962,369
Retained earnings		(38,216,587	)		(38,216,587	)		(34,332,122	)		(34,332,122	)		(34,332,122	)
Accumulated other comprehensive income (loss)		(2,630,700	)		(2,534,270	)		(2,658,504	)		(2,981,990	)		(3,364,208	)
Net Income		(506,545	)		(335,807	)		(3,884,465	)		(2,655,419	)		(1,785,101	)
Total Equity		37,180,616			37,341,718			22,089,239			22,984,274			23,472,374

Total Liabilities & Equity	$	288,216,809		$	286,529,580		$	260,466,084		$	233,027,514		$	246,185,444

Book Value Per Share	$	0.069		$	0.069		$	0.082		$	0.085		$	0.087

Gateway Bank, FSB
Quarterly Income Statements
Unaudited	Quarter Ended
	Jun 30 2026			Mar 31 2026			Dec 31 2025			Sep 30 2025			Jun 30 2025
Interest Income
Interest and fees on loans	$	3,789,596		$	2,907,033		$	2,682,155		$	2,602,415		$	2,562,996
Dividends on FHLB stock		33,656			97,379			40,970			38,439			32,181
Interest on federal funds sold		888			283			208			3,447			2,036
Interest on deposits with banks		128,267			217,706			118,893			189,417			253,223
Investment securities - AFS		270,683			257,941			277,750			332,268			367,675
Total Interest Income		4,223,090			3,480,342			3,119,976			3,165,986			3,218,111

Interest Expense
Interest bearing demand deposits		1,475			1,453			1,651			1,215			785
Savings and money market deposits		172,562			159,637			146,900			122,160			98,936
Retail time deposits		1,384,829			1,382,261			1,464,269			1,661,229			1,754,029
Wholesale time deposits		115,572			114,287			116,736			145,127			178,729
Total Interest Expense on Deposits		1,674,438			1,657,638			1,729,556			1,929,731			2,032,479

Interest expense on borrowings		402,893			309,921			144,463			-			-
Total Interest Expense		2,077,331			1,967,559			1,874,019			1,929,731			2,032,479

Net Interest Income		2,145,759			1,512,783			1,245,957			1,236,255			1,185,632

Provision for credit losses		109,774			1,969			7,469			10,859			(62,583	)
Net interest income after provision for credit losses		2,035,985			1,510,814			1,238,488			1,225,396			1,248,215

Non Interest Income
Service charges and fees		3,322			3,188			3,222			2,994			5,269
Loan servicing fees & MSR valuation		(11,955	)		720			(12,209	)		(37,304	)		(27,567	)
Other noninterest income		34,598			16,870			16,565			16,810			23,917
Total Non Interest Income		25,965			20,778			7,578			(17,500	)		1,619

Non Interest Expense
Salaries and employee benefits		1,374,579			1,059,563			1,335,580			1,120,524			1,072,994
Occupancy		164,801			153,832			174,937			292,661			241,429
Other noninterest expense		692,508			654,005			964,594			665,029			762,095
Total Non Interest Expense		2,231,888			1,867,400			2,475,111			2,078,214			2,076,518

Income (Loss) Before Taxes		(169,938	)		(335,808	)		(1,229,045	)		(870,318	)		(826,684	)
Income taxes		800			-			-			-			800
Net Income (Loss)	$	(170,738	)	$	(335,808	)	$	(1,229,045	)	$	(870,318	)	$	(827,484	)

Gateway Bank, FSB
Year-To-Date Income Statements
Unaudited	Six Months Ended
	Jun 30 2026			Jun 30 2025			$ Variance			% Variance
Interest Income
Interest and fees on loans	$	6,696,629		$	5,287,720		$	1,408,909		27	%
Dividends on FHLB stock		131,035			71,221			59,814		84	%
Interest on federal funds sold		1,171			33,022			(31,851	)	-96	%
Interest on deposits with banks		345,973			501,839			(155,866	)	-31	%
Investment securities - AFS		528,624			737,341			(208,717	)	-28	%
Total Interest Income		7,703,432			6,631,143			1,072,289		16	%

Interest Expense
Interest bearing demand deposits		2,927			1,647			1,280		78	%
Savings and money market deposits		332,199			183,415			148,784		81	%
Retail time deposits		2,767,090			3,665,658			(898,568	)	-25	%
Wholesale time deposits		229,858			355,555			(125,697	)	-35	%
Total Interest Expense on Deposits		3,332,074			4,206,275			(874,201	)	-21	%

Interest expense on borrowings		712,814			-			712,814		0	%
Total Interest Expense		4,044,888			4,206,275			(161,387	)	-4	%

Net Interest Income		3,658,544			2,424,868			1,233,676		51	%

Provision for credit losses		111,743			27,041			84,702		313	%
Net interest income after provision for credit losses		3,546,801			2,397,827			1,148,974		48	%

Non Interest Income
Service charges and fees		6,509			13,406			(6,897	)	-51	%
Loan servicing fees		(11,235	)		(52,586	)		41,351		-79	%
Other noninterest income		51,468			(1,830	)		53,298		-2912	%
Total Non Interest Income		46,742			(41,010	)		87,752		-214	%

Non Interest Expense
Salaries and employee benefits		2,434,142			2,169,910			264,232		12	%
Occupancy		318,633			479,726			(161,093	)	-34	%
Other noninterest expense		1,346,513			1,491,482			(144,969	)	-10	%
Total Non Interest Expense		4,099,288			4,141,118			(41,830	)	-1	%

Income (Loss) Before Taxes		(505,745	)		(1,784,301	)		1,278,556		-72	%
Income taxes		800			800			-		0	%
Net Income (Loss)	$	(506,545	)	$	(1,785,101	)	$	1,278,556		-72	%

Gateway Bank, FSB
Quarterly Financial Highlights
Unaudited	For The Quarter Ended
($ in Thousands)	Jun 30 2026			Mar 31 2026			Dec 31 2025			Sep 30 2025			Jun 30 2025

EARNINGS
Net interest income	$	2,146		$	1,513		$	1,246		$	1,236		$	1,186
Provision for credit losses		110			2			7			11			(63	)
Non-interest income		26			21			8			(18	)		2
Non-interest expense		2,232			1,867			2,475			2,078			2,077
Net income		(171	)		(336	)		(1,229	)		(870	)		(827	)

PERFORMANCE RATIOS
Yield on loans		6.38	%		5.48	%		5.52	%		5.71	%		5.58	%
Yield on earning assets		5.99	%		5.19	%		5.20	%		5.32	%		5.21	%
Cost of funds		3.37	%		3.34	%		3.41	%		3.57	%		3.65	%
Net interest margin		3.05	%		2.23	%		2.10	%		2.10	%		1.91	%
Efficiency ratio		103	%		122	%		197	%		171	%		175	%

CAPITAL
Tangible equity to tangible assets		12.81	%		12.94	%		8.38	%		9.74	%		9.41	%
Community Bank Leverage Ratio		13.84	%		14.59	%		10.18	%		10.65	%		10.58	%

ASSET QUALITY
Net loan charge-offs (recoveries)	$	-		$	-		$	-		$	-		$	-
Allowance for credit losses on loans		2,639			2,543			2,540			2,531			2,520
Non-performing loans		610			5,757			5,877			4,039			3,040
ACL to total loans		1.07	%		1.09	%		1.18	%		1.41	%		1.38	%
ACL to non-performing loans		432	%		44	%		43	%		63	%		83	%

END OF PERIOD BALANCES
Total loans, gross	$	246,490		$	232,681		$	215,092		$	179,463		$	182,447
Total assets		288,217			286,530			260,466			233,028			246,185
Deposits		204,095			202,316			203,030			207,663			219,971
FHLB Advances		43,000			43,000			33,000			-			-
Total equity		37,181			37,342			22,089			22,984			23,472
Loan to deposit ratio		120.8	%		115.0	%		105.9	%		86.4	%		82.9	%
Common Shares Outstanding (thousands)		537,629			537,629			269,913			269,913			269,913

QUARTERLY AVERAGE BALANCES
Total loans, gross	$	237,875		$	212,719		$	194,060		$	182,190		$	183,889
Earning assets		279,472			266,442			236,773			234,217			243,567
Total assets		287,726			273,297			243,104			240,555			249,954
Deposits		203,350			204,549			202,358			214,611			223,431
FHLB Advances		43,000			34,000			15,565			-			-
Total equity		37,349			32,128			22,768			23,295			23,731
Common Shares Outstanding (thousands)		537,629			475,162			269,913			269,913			269,913

Contact:

Mukhtar Ali
(510) 813-8582
Mukhtar.Ali@gatewayfsb.com

Source: Gateway Bank, F.S.B.

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GWBK GULF WEST BANKS INC

Gateway Bank, F.S.B. Reports Second Quarter 2026 Results; Loan Growth up 35% Year Over Year