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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