Gateway Bank, F.S.B. Reports First Quarter 2026 Results; Highlighted by 24% Loan Growth Year Over Year
OAKLAND, Calif., April 28, 2026 (GLOBE NEWSWIRE) -- Gateway Bank, F.S.B. (OTCPK: GWBK) (“the Bank”) today announced a net loss of $336,000 for the first quarter of 2026. This compared to a net loss of $1.23 million in the preceding quarter, and a net loss of $958,000 in the first 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. All financial results are unaudited.
“We are energized with the momentum building across our franchise this quarter as we make measurable progress toward sustained profitability,” said Mukhtar Ali, President and CEO. “Loan growth has been robust, and our strategy of front-loading asset generation in the first and second quarters — including selectively acquiring jumbo mortgage loans at attractive premiums — is tracking to plan. Alongside that growth, we remain equally focused on deposit generation and improving our funding mix.
“On the talent front, we have made meaningful additions to our team,” Ali continued. “Our first two relationship managers in years joined the Walnut Creek team during the first quarter and are already making an impact. Their combined depth of experience in commercial banking and relationship management strengthens our ability to serve clients at the highest level. Additions like these are a direct reflection of the foundation we are building and the kind of talent we intend to keep attracting. We are making deliberate progress toward sustained profitability and remain focused on strengthening our funding base and building the foundation for durable earnings power. We are encouraged by the traction to date and confident in the road ahead.
“One of the highlights of the quarter was the successful completion of our $16.1 million private placement of common shares. This capital raise strengthens our balance sheet and positions us to accelerate our growth initiatives. The Bay Area banking landscape continues to evolve, as ongoing consolidation has created meaningful market gaps that we believe Gateway Bank is well-positioned to fill. We will deploy this capital deliberately, with a clear focus on profitability and long-term franchise value. Our team is committed to that work, and we remain determined to establish Gateway Bank as a leading community bank in the Bay Area,” said Ali.
First Quarter 2026 Highlights:
- Net interest income increased 21.4% to $1.51 million in the first quarter of 2026, compared to $1.25 million in the fourth quarter of 2025, and increased 22.1% compared to $1.24 million in the first quarter of 2025.
- The Bank reported a net loss of $336,000 for the first quarter of 2026, compared to net loss of $1.23 million for the fourth quarter of 2025, and a net loss of $958,000 for the first quarter of 2025.
- Total revenue, consisting of net interest income before the provision for credit losses, plus non-interest income, increased 22.3% to $1.53 million in the first quarter of 2026, compared to $1.25 million in the preceding quarter and increased 28.2% compared to $1.20 million in the first quarter a year ago.
- Net interest margin was 2.23% in the first quarter of 2026, compared to 2.10% in the preceding quarter and 1.91% in the first quarter a year ago. The 13 basis point increase in net interest margin during the first quarter was due to an improved cost of funds and stable earning asset yields compared to the linked quarter.
- Non-interest expense decreased 24.6% to $1.87 million in the first quarter of 2026, compared to $2.47 million in the preceding quarter, and decreased 9.5% when compared to $2.06 million in the first quarter a year ago.
- Average assets for the quarter totaled $273.3 million, an increase of $30.2 million, or 12.4% from the prior quarter, and an increase of $15.9 million, or 6.2% from the year ago quarter. Total assets increased $26.1 million, or 10.0% to $286.5 million at March 31, 2026, compared to $260.5 million at December 31, 2025, and increased $28.9 million, or 11.2% compared to 257.6 million at March 31, 2025.
- Average total gross loans for the first quarter of 2026 increased $18.7 million, or 9.6% to $212.7 million, compared to $194.1 million in the fourth quarter of 2025, and increased $23.8 million, or 12.6% from $188.9 million in the first quarter of 2025. Total loans at March 31, 2026, increased 8.2% during the quarter to $232.7 million from $215.1 million at December 31, 2025, and increased 23.8% compared to $187.9 million at March 31, 2025.
- Average first quarter 2026 total deposits grew $2.19 million, or 1.1% to $204.5 million, from $202.4 million in the preceding quarter, and decreased 11.1% from $230.1 million in the first quarter of a year ago. Total deposits decreased nominally to $202.3 million, at March 31, 2026, compared to $203.0 million at December 31, 2025, and decreased $28.7 million, or 12.4% compared to $231.0 million at March 31, 2025.
- The Bank recorded a $3,000 provision for credit losses in the first quarter of 2026, compared to a $9,000 provision in the fourth quarter of 2025, and a $92,000 provision in the first quarter of 2025.
- Allowance for credit losses, as a percentage of total loans, was 1.09% at March 31, 2026, compared to 1.18% at December 31, 2025, and 1.36% at March 31, 2025.
- Nonperforming loans totaled $5.76 million at March 31, 2026, compared to $5.88 million at December 31, 2025, and $2.29 million a year ago.
- There were no net charge-offs in the first 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 14.59% at March 31, 2026.
During the first quarter, 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. “This new location in Walnut Creek gives us a better home base in a market we’ve been committed to for years,” said Ali. “The move puts us closer to our clients, and we think that proximity matters. We are excited to deepen the relationships we’ve already built here and continue supporting the region’s growth from this new space.”
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 | |||||||||||||||
| Mar 31 2026 | Dec 31 2025 | Sep 30 2025 | Jun 30 2025 | Mar 31 2025 | |||||||||||
| Assets | |||||||||||||||
| Cash and due from banks | 1,828,608 | 1,629,783 | 1,285,211 | 1,940,726 | 1,810,092 | ||||||||||
| Fed funds sold | 128,881 | - | - | - | - | ||||||||||
| Interest bearing deposits with banks | 16,054,308 | 9,150,342 | 15,358,735 | 22,126,902 | 26,481,238 | ||||||||||
| Total cash and equivalents | 18,011,797 | 10,780,125 | 16,643,946 | 24,067,628 | 28,291,330 | ||||||||||
| Investment securities, AFS | 27,456,099 | 27,839,840 | 30,557,274 | 33,164,921 | 34,836,163 | ||||||||||
| FHLB Stock and Other Investments | 2,061,200 | 2,061,200 | 2,061,200 | 2,061,200 | 1,732,500 | ||||||||||
| 1-4 family residential | 161,339,952 | 161,718,113 | 134,471,362 | 140,800,113 | 147,529,395 | ||||||||||
| Multifamily residential | 21,624,467 | 12,935,464 | 13,002,960 | 9,334,581 | 9,391,317 | ||||||||||
| Non-farm, non-residential real estate | 45,360,554 | 36,071,404 | 28,854,756 | 29,032,759 | 27,683,863 | ||||||||||
| Commercial and industrial | 4,356,480 | 4,366,320 | 3,134,343 | 3,279,098 | 3,357,502 | ||||||||||
| Consumer and other | - | 410 | 59 | 342 | 10 | ||||||||||
| Loans, net of unearned income | 232,681,453 | 215,091,711 | 179,463,480 | 182,446,893 | 187,962,087 | ||||||||||
| Allowance for Credit Losses-Loans | (2,543,007 | ) | (2,540,065 | ) | (2,531,061 | ) | (2,520,472 | ) | (2,559,090 | ) | |||||
| Total loans, net | 230,138,446 | 212,551,646 | 176,932,419 | 179,926,421 | 185,402,997 | ||||||||||
| Premises and equipment, net | 800,400 | 695,171 | 602,114 | 366,162 | 251,852 | ||||||||||
| Accrued interest receivable | 1,231,367 | 1,162,055 | 1,156,714 | 1,227,080 | 1,325,751 | ||||||||||
| Other assets | 6,830,271 | 5,376,047 | 5,073,847 | 5,372,032 | 5,760,991 | ||||||||||
| Total Assets | $ | 286,529,580 | $ | 260,466,084 | $ | 233,027,514 | $ | 246,185,444 | $ | 257,601,584 | |||||
| Liabilities | |||||||||||||||
| Non-Interest Bearing Deposits | 8,365,308 | 9,641,094 | 9,165,121 | 8,243,872 | 7,664,830 | ||||||||||
| Interest bearing demand deposits | 5,787,575 | 6,793,724 | 7,025,056 | 5,767,092 | 6,705,335 | ||||||||||
| Savings and Money Market Deposits | 26,064,932 | 27,470,224 | 19,978,923 | 20,844,299 | 18,840,172 | ||||||||||
| Time Deposits - Retail | 150,125,894 | 147,156,815 | 159,529,226 | 167,156,792 | 179,871,700 | ||||||||||
| Time Deposits - Wholesale | 11,972,512 | 11,968,456 | 11,964,400 | 17,959,411 | 17,953,955 | ||||||||||
| Total Deposits | 202,316,221 | 203,030,313 | 207,662,726 | 219,971,466 | 231,035,992 | ||||||||||
| Borrowings | 43,000,000 | 33,000,000 | - | - | - | ||||||||||
| Accrued expenses and other liabilities | 3,871,641 | 2,346,532 | 2,380,514 | 2,741,604 | 2,589,898 | ||||||||||
| Total Liabilities | 249,187,862 | 238,376,845 | 210,043,240 | 222,713,070 | 233,625,890 | ||||||||||
| Equity | |||||||||||||||
| Preferred Stock | - | - | - | - | - | ||||||||||
| Common stock | 53,763,103 | 26,991,436 | 26,991,436 | 26,991,436 | 26,991,436 | ||||||||||
| Capital surplus | 24,665,279 | 35,972,894 | 35,962,369 | 35,962,369 | 35,962,369 | ||||||||||
| Retained earnings | (38,216,587 | ) | (34,332,122 | ) | (34,332,122 | ) | (34,332,122 | ) | (34,332,122 | ) | |||||
| Accumulated other comprehensive income (loss) | (2,534,270 | ) | (2,658,504 | ) | (2,981,990 | ) | (3,364,208 | ) | (3,688,372 | ) | |||||
| Net Income | (335,807 | ) | (3,884,465 | ) | (2,655,419 | ) | (1,785,101 | ) | (957,617 | ) | |||||
| Total Equity | 37,341,718 | 22,089,239 | 22,984,274 | 23,472,374 | 23,975,694 | ||||||||||
| Total Liabilities & Equity | $ | 286,529,580 | $ | 260,466,084 | $ | 233,027,514 | $ | 246,185,444 | $ | 257,601,584 | |||||
| Gateway Bank, FSB | ||||||||||
| Quarterly Income Statements | ||||||||||
| Unaudited | Quarter Ended | |||||||||
| Mar 31 2026 | Dec 31 2025 | Sep 30 2025 | Jun 30 2025 | Mar 31 2025 | ||||||
| Interest Income | ||||||||||
| Interest and fees on loans | 2,907,033 | 2,682,155 | 2,602,415 | 2,562,996 | 2,724,726 | |||||
| Dividends on FHLB stock | 97,379 | 40,970 | 38,439 | 32,181 | 39,040 | |||||
| Interest on federal funds sold | 283 | 208 | 3,447 | 2,036 | 30,986 | |||||
| Interest on deposits with banks | 217,706 | 118,893 | 189,417 | 253,223 | 248,615 | |||||
| Investment securities - AFS | 257,941 | 277,750 | 332,268 | 367,675 | 369,666 | |||||
| Total Interest Income | 3,480,342 | 3,119,976 | 3,165,986 | 3,218,111 | 3,413,033 | |||||
| Interest Expense | ||||||||||
| Interest bearing demand deposits | 1,453 | 1,651 | 1,215 | 785 | 862 | |||||
| Savings and money market deposits | 159,637 | 146,900 | 122,160 | 98,936 | 84,479 | |||||
| Retail time deposits | 1,382,261 | 1,464,269 | 1,661,229 | 1,754,029 | 1,911,630 | |||||
| Wholesale time deposits | 114,287 | 116,736 | 145,127 | 178,729 | 176,825 | |||||
| Total Interest Expense on Deposits | 1,657,638 | 1,729,556 | 1,929,731 | 2,032,479 | 2,173,796 | |||||
| Interest expense on borrowings | 309,921 | 144,463 | - | - | - | |||||
| Total Interest Expense | 1,967,559 | 1,874,019 | 1,929,731 | 2,032,479 | 2,173,796 | |||||
| Net Interest Income | 1,512,783 | 1,245,957 | 1,236,255 | 1,185,632 | 1,239,237 | |||||
| Provision for credit losses | 2,942 | 9,004 | 10,589 | (38,619 | ) | 91,762 | ||||
| Net interest income after provision for credit losses | 1,509,841 | 1,236,953 | 1,225,666 | 1,224,251 | 1,147,475 | |||||
| Non Interest Income | ||||||||||
| Service charges and fees | 3,188 | 3,222 | 2,994 | 5,269 | 8,137 | |||||
| Loan servicing fees & MSR valuation | 720 | (12,209 | ) | (37,304 | ) | (27,567 | ) | (25,020 | ) | |
| Other noninterest income | 16,870 | 16,565 | 16,810 | 23,917 | (25,747 | ) | ||||
| Total Non Interest Income | 20,778 | 7,578 | (17,500 | ) | 1,619 | (42,630 | ) | |||
| Non Interest Expense | ||||||||||
| Salaries and employee benefits | 1,059,563 | 1,335,580 | 1,120,524 | 1,072,994 | 1,096,917 | |||||
| Occupancy | 153,832 | 174,937 | 292,661 | 241,429 | 238,297 | |||||
| Other noninterest expense | 653,031 | 963,059 | 665,299 | 738,131 | 727,248 | |||||
| Total Non Interest Expense | 1,866,426 | 2,473,576 | 2,078,484 | 2,052,554 | 2,062,462 | |||||
| Income (Loss) Before Taxes | (335,807 | ) | (1,229,045 | ) | (870,318 | ) | (826,684 | ) | (957,617 | ) |
| Income taxes | - | - | - | 800 | - | |||||
| Net Income (Loss) | (335,807 | ) | (1,229,045 | ) | (870,318 | ) | (827,484 | ) | (957,617 | ) |
| Gateway Bank, FSB | |||||||||||||||
| Quarterly Financial Highlights | |||||||||||||||
| Unaudited | For The Quarter Ended | ||||||||||||||
| ($ in Thousands) | Mar 31 2026 | Dec 31 2025 | Sep 30 2025 | Jun 30 2025 | Mar 31 2025 | ||||||||||
| EARNINGS | |||||||||||||||
| Net interest income | $ | 1,513 | $ | 1,246 | $ | 1,236 | $ | 1,186 | $ | 1,239 | |||||
| Provision for credit losses | 3 | 9 | 11 | (39 | ) | 92 | |||||||||
| Non-interest income | 21 | 8 | (18 | ) | 2 | (43 | ) | ||||||||
| Non-interest expense | 1,866 | 2,474 | 2,078 | 2,053 | 2,062 | ||||||||||
| Net income | (336 | ) | (1,229 | ) | (870 | ) | (827 | ) | (958 | ) | |||||
| PERFORMANCE RATIOS | |||||||||||||||
| Yield on loans | 5.48 | % | 5.52 | % | 5.71 | % | 5.58 | % | 5.78 | % | |||||
| Yield on earning assets | 5.19 | % | 5.20 | % | 5.32 | % | 5.21 | % | 5.37 | % | |||||
| Cost of funds | 3.34 | % | 3.41 | % | 3.57 | % | 3.65 | % | 3.83 | % | |||||
| Net interest margin | 2.23 | % | 2.10 | % | 2.10 | % | 1.91 | % | 1.91 | % | |||||
| CAPITAL | |||||||||||||||
| Tangible equity to tangible assets | 12.94 | % | 8.38 | % | 9.74 | % | 9.41 | % | 9.18 | % | |||||
| Community Bank Leverage Ratio | 14.59 | % | 10.18 | % | 10.65 | % | 10.58 | % | 10.59 | % | |||||
| ASSET QUALITY | |||||||||||||||
| Net loan charge-offs (recoveries) | $ | - | $ | - | $ | - | $ | - | $ | - | |||||
| Allowance for credit losses on loans | 2,543 | 2,540 | 2,531 | 2,520 | 2,559 | ||||||||||
| Non-performing loans | 5,757 | 5,877 | 4,039 | 3,040 | 2,286 | ||||||||||
| ACL to total loans | 1.09 | % | 1.18 | % | 1.41 | % | 1.38 | % | 1.36 | % | |||||
| ACL to non-performing loans | 44 | % | 43 | % | 63 | % | 83 | % | 112 | % | |||||
| END OF PERIOD BALANCES | |||||||||||||||
| Total loans, gross | $ | 232,681 | $ | 215,092 | $ | 179,463 | $ | 182,447 | $ | 187,962 | |||||
| Total assets | 286,530 | 260,466 | 233,028 | 246,185 | 257,602 | ||||||||||
| Deposits | 202,316 | 203,030 | 207,663 | 219,971 | 231,036 | ||||||||||
| FHLB Advances | 43,000 | 33,000 | - | - | - | ||||||||||
| Total equity | 37,342 | 22,089 | 22,984 | 23,472 | 23,975 | ||||||||||
| Loan to deposit ratio | 115.0 | % | 105.9 | % | 86.4 | % | 82.9 | % | 81.4 | % | |||||
| QUARTERLY AVERAGE BALANCES | |||||||||||||||
| Total loans, gross | $ | 212,719 | $ | 194,060 | $ | 182,190 | $ | 183,889 | $ | 188,877 | |||||
| Earning assets | 266,442 | 236,773 | 234,217 | 243,567 | 250,921 | ||||||||||
| Total assets | 273,297 | 243,104 | 240,555 | 249,954 | 257,436 | ||||||||||
| Deposits | 204,549 | 202,358 | 214,611 | 223,431 | 230,117 | ||||||||||
| FHLB Advances | 34,000 | 15,565 | - | - | - | ||||||||||
| Total equity | 32,128 | 22,768 | 23,295 | 23,731 | 24,424 | ||||||||||
Contact:
Mukhtar Ali
(510) 813-8582
Mukhtar.Ali@gatewayfsb.com
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