Cashmere Valley Bank Announces Preliminary Results of Share Repurchase Program
Cashmere Valley Bank (OTCQB:CSHX) has released preliminary findings from its cash tender offer, which concluded on January 12, 2026. The regional bank anticipates acquiring approximately 200,000 shares of its common stock at $75.00 per share, reflecting a total expenditure of around $15 million. This strategic buyback represents an estimated 5.12% of the bank’s outstanding common stock.
The tender offer, initiated on December 10, 2025, was structured with a purchase price that carried an 11.1% premium over the market trading price on December 4, 2025. This premium reflects a deliberate effort by the bank to incentivize shareholders to participate, signaling a commitment to enhancing shareholder value.
The tender offer was met with significant interest, exceeding the number of shares the bank intended to purchase. This oversubscription necessitated a pro rata acceptance of tendered shares, with preliminary results indicating that 60.3758% of the shares submitted were accepted for purchase. This proration mechanism ensures that while not all tendered shares can be repurchased, the offer remains fair to all participants within the established parameters. Final confirmation of the transaction, including the verification of valid share deliveries and the exclusion of any withdrawn shares, is pending.
This share repurchase initiative is a noteworthy move for a community bank of Cashmere Valley Bank’s size. Typically, such aggressive buyback programs are more commonly observed among larger, publicly traded corporations. The decision to repurchase a significant percentage of its outstanding shares suggests a management team confident in the bank’s intrinsic value and future prospects. From a financial engineering perspective, reducing the share count can lead to an increase in earnings per share (EPS), assuming net income remains constant or grows. This can positively influence the stock’s valuation metrics, potentially attracting further investor interest.
Furthermore, managing a tender offer of this magnitude requires careful financial planning and risk assessment. The bank’s ability to fund the $15 million buyback from its existing capital or liquidity reserves without compromising its operational capacity or regulatory capital ratios is a testament to its sound financial management. The premium offered also indicates a strategic decision to return capital to shareholders in a tax-efficient manner compared to a standard dividend, particularly for shareholders in higher tax brackets.
The preliminary nature of the results underscores the complexities of tender offer settlements. Ensuring all legal and procedural requirements are met before finalization is critical to avoid any post-transaction complications. The bank’s adherence to these procedures will be closely watched by investors and analysts.
**About Cashmere Valley Bank**
Established on September 24, 1932, Cashmere Valley Bank operates 11 retail branches across Chelan, Douglas, Kittitas, and Yakima Counties, with an additional municipal lending office in King County. The bank offers a comprehensive suite of financial services, including personal and business banking, commercial lending, insurance through its subsidiary Mitchell, Reed & Schmitten, investment services, mortgage lending, equipment lease financing, auto and marine dealer financing, and municipal lending.
**Forward-Looking Statements**
This press release contains forward-looking statements, identified by words such as “anticipate,” “believe,” “can,” “would,” “should,” “could,” “may,” “predict,” “seek,” “potential,” “will,” “estimate,” “target,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “intend,” or similar expressions. These statements relate to the Bank’s strategies, plans, and intentions. Forward-looking statements involve inherent risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed. These include, but are not limited to, the “Risk Factors” detailed in the Offer to Purchase, as well as the ability to execute business strategies, general economic and market conditions, various financial risks (operational, liquidity, credit, interest rate), changes in trade, monetary, and fiscal policies and laws, regulatory capital requirements, inflation, securities market fluctuations, consumer spending habits, acquisition integration success, organic loan and deposit growth, funding sources, competitive pressures, accounting policy changes, stock price volatility, deferred tax asset realization, financial industry consolidation, market share maintenance, expense control, legal and regulatory developments, technological advancements, new product and service adoption, personnel retention, operational risk management, loan loss reserve estimates, and the impact of widespread disasters, dislocations, political instability, acts of war or terrorism, cyberattacks, or international hostilities, as well as reputational risk and the successful management of these items. The Bank cannot guarantee that any stated goal, plan, or expectation will be achieved, and readers are cautioned against placing undue reliance on these statements. These forward-looking statements are made as of the date of this press release, and the Bank assumes no obligation to update them to reflect events or circumstances occurring after this date or to reflect unanticipated events, except as required by applicable law.
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