Commencement Bancorp Inc · OTC:CBWA
Commencement Bancorp — Q3 2026 Earnings Presentation
36 slides from Commencement Bancorp's earnings presentation, Sep 30, 2026
Slide 1: Investor Presentation
INVESTOR PRESENTATION S E P T E M B E R 3 0, 2 0 2 6 | OTCQ X : C BWA All dollars are in thousands unless otherwise noted 1
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT Forward-Looking Statement Safe Harbor: This presentation contains comments or information that constitutes forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve several ris
Slide 3: Table of Contents
TABLE OF CONTENTS 01 Co m p a ny O ve r v i ew 02 B a l a n ce S h e e t O ve r v i ew 03 I n co m e S t a te m e n t O ve r v i ew 04 Co m m e n ce m e nt Co m m u n it y 05 F i n a nc ia l A p p e n di x 3
Slide 4: Company Overview
SECTION 01 COMPANY OVERVIEW SECTION 01 4
Slide 5: Our Story
OUR STORY A LOCAL BANK. A WORLD OF POSSIBI LI TI ES.. o Commencement Bancorp, Inc. (OTCQX: CBWA), is the holding company for Commencement Bank o Founded in 2006 o Headquartered in Tacoma, Washington 2023 2015 o Attractive and growing marketplace 2006 o Talented management and staff driving profitabi
Slide 6: Historical Asset Growth
HISTORICAL ASSET GROWTH We formed Commencement Bank in 2006. 719 Our focus on traditional, reliable, and 683 sustainable banking met an immediate 650 challenge during the financial crisis of 2008. It 581 586 turns out, values like personal service, thoughtful relationships, and prudent decision- 528
Slide 7: Our Markets
OUR MARKETS King County, WA Pierce County, WA Thurston County, WA Kitsap County, WA 2.3M 940k 302k 283k Population Population Population Population 264k 77k 25k 6.2k Employers(1) Employers(1) Employers(1) Employers(1) Fast Facts Fast Facts Fast Facts Fast Facts • Economic, education, transportation,
Slide 8: Market Share
MARKET SHARE Deposits as of June 30, 2026 State Branches, Total Deposits Market Rank Institution Name HQ incl HQ (Thousands) Share 1 Bank of America, National Association NC 83 35,017,274 26.42% 2 JPMorgan Chase Bank, National Association OH 83 20,478,666 15.45% 3 Wells Fargo Bank, National Associat
Slide 9: Our Senior Management Team
OUR SENIOR MANAGEMENT TEAM John Manolides Nigel English Brandi Parker, EVP Chief Executive Officer President & Chief Financial Officer Chief Operating Officer Rick Larson, EVP Rebecca Jerald Kennedy, SVP Chief Credit Officer Williamson, SVP Chief Information Officer Human Resources Manager Pat Lewis
Slide 10: Healthcare Banking Team
HEALTHCARE BANKING TEAM Premier healthcare banking group in the Pacific Northwest Joined Commencement in March 2026 Over 45 years of combined healthcare lending experience “We are thrilled to welcome this exceptional banking team to our organization. Their deep industry expertise and commitmen
Slide 11: Core Financial Results
CORE FINANCIAL RESULTS Balance Sheet Strength Consistent Profitability Strong Earnings Metrics Healthy Credit Quality $719 Million $7.3 Million 1.11% 1.18% Total Assets Net Interest Income ROAA (1) ACL / Loans $570 Million $2.0 Million 12.67% 0.00% Gross Loans Net Income ROAE (1) Net Charge-Offs (Re
Slide 12: Balance Sheet Overview
S E C T I O N 02 BALANCE SHEET OVERVIEW S E C T I O N 02 12
Slide 13: Investment Portfolio
INVESTMENT PORTFOLIO Available for Sale* Unrealized losses of $13.3M Investment Balances and Yields Effective duration of 4.4 years Company executed a loss trade in Dec 2024; selling $13.3 million of securities at 2.57% and purchasing $12.4 million of securities at 5.0% Investments AFS Corpora
Slide 14: Loan Portfolio
LOAN PORTFOLIO Loans by Type* Loan Growth Non-owner Occupied Commercial Commercial Real and Estate Industrial 23.8% 26.0% Consumer 0.9% Construction & Land Development Owner Occupied 5.7% Commercial Real Estate 22.3% 1-4 Family 14.3% Multi-family 7.0% *By Call Code 14
Slide 15: Loan Industries
LOAN INDUSTRIES Non-Owner Occupied Commercial Commercial Loans (C&I) Real Estate & Multi-Family Public Sector Miscellaneous Service 13.8% Commercial 15.6% Industrial/ Industries Warehouse 23.6% Other 14.7% 5.0% Contractors 11.1% Real Estate Multi-Family Investment 22.7% 3.0% Commercial Real Estate 3
Slide 16: Credit Metrics
CREDIT METRICS Nonaccrual Loans & Allowance for Credit Losses & Net Charge-offs (Recoveries) as a Percentage of Loans *Quarterly values are annualized. Negative percentage is recovery. 16
Slide 17: Classified Loans
CLASSIFIED LOANS • Management is proactive in assessing downgrades • Credits must show sustained financial performance prior to upgrade *Classified loans are defined as Substandard or worse. 17
Slide 18: Deposit Portfolio
DEPOSIT PORTFOLIO Deposits by Type Deposit Growth Certificate of Deposit Savings 10.2% Account Non- 1.2% interest Bearing Demand Deposit Account 30.4% Money Market Interest Account Bearing 27.1% Demand Deposit * Account 31.1% *While deposits as of September 30, 2026 were less than June 30, 2026, the
Slide 19: Liquidity & Capital
LIQUIDITY & CAPITAL Liquidity Sources Repurchase Plan $72,110 Unencumbered Investment Authorization to purchase up to Securities AFS, at fair value 5% of outstanding shares $80,654 FRB Borrowing Capacity Fed Fund Lines Total of 95,000 shares $34,000 repurchased in 2026 under this FHLB Borrowing
Slide 20: Capital Ratios
CAPITAL RATIOS Tangible Common Equity Ratio Tier 1 Ratio 8.65% 8.67% 8.63% 13.27% 13.05% The Holding 8.36% 8.35% 12.95% 12.80% Company issued 7.88% 12.50% 12.36% $5.8 million of 7.74% 12.14% subordinated debentures (“sub-debt”) in Dec-22 Dec-23 Dec-24 Dec-25 Mar-26 Jun-26 Sep-26 Dec-22 Dec-23 Dec-24
Slide 21: Income Statement Overview
S E C T I O N 04 INCOME STATEMENT OVERVIEW S E C T I O N 03 21
Slide 22: Net Income & Profitability
NET INCOME & PROFITABILITY Net Income Years 2023 and 2024 were $6,708 $5,493 transitional periods, $3,050 $3,012 including: $1,662 $1,816 $2,042 The Company made 2022Y 2023Y 2024Y* 2025Y Q1'2026 Q2'2026 Q3'2026 significant investments in technology with the goal of Return on Average Assets susta
Slide 23: Net Interest Income & Margin
NET INTEREST INCOME & MARGIN Net Interest Income $25,530 $18,391 $18,324 $19,498 $6,796 $6,874 $7,283 2022Y 2023Y 2024Y 2025Y Q1'2026 Q2'2026 Q3'2026 Net Interest Margin 4.10% 4.20% 4.29% 4.28% 3.47% 3.34% 3.44% 2022Y 2023Y 2024Y 2025Y Q1'2026 Q2'2026 Q3'2026 23
Slide 24: Net Interest Margin Change
NET INTEREST MARGIN CHANGE Quarterly Change in Net Interest Margin 4.29% 4.28% 0.03% 0.02% 0.02% -0.03% -0.05% Q2'2026 Loans Investments Interest Earning Deposits Borrowings / Q3'2026 Deposits <1> Sub-debt <1> Includes Fed Funds Sold and Dividends on Other Investments. 24
Slide 25: Interest Income & Yields
INTEREST INCOME & YIELDS Interest Income on Loans $30,172 $26,514 $23,144 $17,175 $7,874 $8,423 $8,671 2022Y 2023Y 2024Y 2025Y Q1'2026 Q2'2026 Q3'2026 Yield on Total Interest Earning Assets 5.57% 5.49% 5.61% 5.63% 5.27% 4.64% 3.71% 2022Y 2023Y 2024Y 2025Y Q1'2026 Q2'2026 Q3'2026 25
Slide 26: Interest Expense & Costs
INTEREST EXPENSE & COSTS Interest Expense on Deposits $10,185 $8,079 $9,016 $1,421 $2,089 $2,196 $2,215 2022Y 2023Y 2024Y 2025Y Q1'2026 Q2'2026 Q3'2026 Cost of Total Deposits 1.85% 1.49% 1.49% 1.33% 1.37% 1.36% 0.26% 2022Y 2023Y 2024Y 2025Y Q1'2026 Q2'2026 Q3'2026 26
Slide 27: Expense & Operational Efficiency
EXPENSE & OPERATIONAL EFFICIENCY • The Company implemented a new core operating system Overhead Ratio in 2023 and a new loan origination platform in 2023/2024 • The Company’s investment in technology laid the foundation for growth without requiring excessive overhead Non-Interest Expense Efficiency
Slide 28: Commencement Community
COMMENCEMENT COMMUNITY S E C T I O N 04 28
Slide 29: Commencement Community
# COMMENCEMENT COMMUNITY We are deeply committed to our community, and that commitment is at the core of everything we do. We stand together in our dedication to giving back, and our collective efforts have already supported 45 nonprofits in 2026, with many more partnerships planned. 29
Slide 30: 2025/2026 Awards
2025/2026 AWARDS We are proud to be recognized for our commitment to our community. Come join us! OTCQX Best 50 2025 Nourish Pierce County Silver Plate Award 2025 Best in Business for Banking Relay For Life 2025 Corporate Sponsor of the Year – North Region Newsweek 2026 Best Regional Banks
Slide 31: Tacoma Rainiers and Tacoma Dome Sponsorships
TACOMA RAINIERS SUMMIT CLUB SPONSOR TACOMA DOME GUEST SERVICES SPONSOR These two sponsorships place the Commencement Bank brand in the largest indoor and outdoor event spaces in Pierce County 31
Slide 32: Financial Appendix
S E C T I O N 05 FINANCIAL APPENDIX S E C T I O N 05 32
Slide 33: Quarterly Financial Statistics
QUARTERLY FINANCIAL STATISTICS As of or for the Quarter Ended September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Select Balance Sheet: Total assets 719,300 739,838 697,484 683,023 676,303 Loans receivable, net 563,397 550,021 533,415 518,058 505,989 Total deposits 6
Slide 34: Balance Sheet
BALANCE SHEET September 30, June 30, December 31, 2026 2026 2025 Assets Cash on hand and in banks $ 9,440 $ 9,791 $ 8,580 Interest bearing deposits 17,763 25,799 11,731 Federal funds sold 10,513 37,357 13,065 Investment securities available for sale, at fair value 72,110 74,004 82,845 Investment sec
Slide 35: Income Statement
INCOME STATEMENT Quarter Ended September 30, June 30, September 30, 2026 2026 2025 Interest Income Interest and fees on loans $ 8,671 $ 8,423 $ 7,998 Interest on investment securities 469 435 681 Interest on interest earning deposits and federal funds 413 459 536 Dividends and other interest 29 27 3
Slide 36: Thank You
COMMENCEMENT ) BANCORP, INC. THANK YOU OTCQX: CBWA