Pacific West Bancorp ("PWBK") Announces First Quarter Financial Results

Rhea-AI Summary

Pacific West Bancorp (PWBK) reported Q1 2025 net income of $81 thousand ($0.03 per diluted share), marking a 132.2% increase from Q1 2024. Key highlights include:

• Total deposits reached $290.7M, growing 6.6% quarterly and 21.3% year-over-year
• Total loans increased 1.4% to $256.3M, with $14.5M in new lending commitments
• Borrowings reduced by 24.5% to $14.6M
• Interest income reached $4.4M, up 7.5% year-over-year
• Net interest margin expanded to 3.10%, up 42 basis points year-over-year
• Non-interest income grew 18% quarterly and 48.9% annually
• Cost of interest-bearing deposits decreased to 3.23%, down 23 basis points from previous quarter

The loan portfolio maintained a 5.83% yield with an Allowance for Credit Losses at 1.44% of total loans and debt securities.

Positive

• Net income increased 132.2% year-over-year to $81,000
• Deposits grew 21.3% year-over-year to $290.7M
• Net interest margin improved by 42 basis points to 3.10%
• Non-interest income increased 48.9% year-over-year
• Interest income grew 7.5% year-over-year to $4.4M
• Borrowings reduced by 62.4% year-over-year
• Cost of interest-bearing deposits decreased by 23 basis points quarterly

Negative

• Modest quarterly loan growth of only 1.4%
• Low absolute net income of $81,000 despite year-over-year improvement
• Non-interest expenses increased 2% year-over-year

PORTLAND, Ore., April 24, 2025 /PRNewswire/ -- Pacific West Bancorp (PWBK), the holding company of Pacific West Bank ("PWB"), today announced a first quarter net income of $81 thousand or $0.03 per diluted share.

First Quarter Highlights:

• Total deposits grew by $17.9 million or 6.6% compared to yearend 2024 or by $50.9 million or 21.3% compared to the first quarter 2024.
• Total loans increased by $3.5 million or 1.4% compared to prior quarter. During the quarter, PWB originated $14.5 million in lending commitments.
• PWB retired $4.7 million, or 24.5% of borrowings in the first quarter of 2025, bringing total borrowings down to $14.6 million. This was a decrease from $38.8 million in the first quarter of 2024 or by 62.4%.  
• Interest expense decreased by $165 thousand or 8% compared to the previous quarter.
• Non-interest income increased by $34 thousand or 18% compared to the previous quarter and by $74 thousand or 48.9% compared to the first quarter of 2024.
• Net income grew by $332 thousand or 132.2% compared to the first quarter of 2024.

"Pacific West Bank's continued deposit growth of $17.9 million or 6.6% for the quarter enabled us to further reduce reliance on higher-cost, non-core funding while continuing to build earning assets, which contributed to an improved net interest margin," said Jason Wessling, PWB's President and CEO. "In addition, our ongoing focus on diversifying revenue streams is reflected in the 18% quarter-over-quarter increase in non-interest income. We remain committed to supporting the businesses and nonprofit organizations that are vital to our communities as they navigate an increasingly dynamic economic environment."

PWB reached a new milestone of $290.7 million in deposits at the end of the first quarter. Year-over-year deposits have grown $50.9 million or 21.3% compared to the first quarter of 2024. The cost of interest-bearing deposits for the first quarter was 3.23%, which decreased by 23 basis points or 6.5%, when compared to the prior quarter.  When compared to the same period in the prior year the cost of interest-bearing deposits decreased by 35 basis points or 9.6%. The Bank's net interest margin continued to expand and was 3.10% for the first quarter of 2025. This was an increase of 42 basis points or 15.7% compared to the first quarter of 2024. The improvement in net interest margin was driven by increased earning assets, loans repricing, and the reduction of higher cost wholesale funding.  

Total loans were $256.3 million at the end of the first quarter of 2025. Loan growth was muted during the quarter as the Bank experienced several larger scheduled loan paydowns, which offset new loan originations. The Bank generated $14.5 million in new lending commitments, which are expected to be funded in the coming quarters and support future loan growth. The loan portfolio continues to perform well, with a yield of 5.83% for the quarter. This represents an increase of 21 basis points compared to the first quarter of 2024, reflecting the continued repricing of variable-rate loans in a higher interest rate environment. "The Bank takes pride in its service-oriented mindset, supporting clients through challenges with thoughtful guidance while safeguarding the Bank's interests. In today's uncertain economic environment, our commitment to client-focused service is particularly critical to meeting their needs responsibly. Our lending team's disciplined focus on responsible growth has enabled the Bank and our clients to collaboratively solve challenges and adapt to evolving conditions. At the same time, we remain vigilant, maintaining a prudent Allowance for Credit Losses (ACL) at approximately 1.44% of total loans and debt securities to ensure continued resilience," said PWB's Chief Credit Officer, Robert Holden.

PWB's top line continues to trend positively, with total interest income reaching $4.4 million for the first quarter of 2025, an increase of $304 thousand, or 7.5%, compared to the same period in 2024. The Bank also maintained its disciplined approach to expense management, as evidenced by a modest $51 thousand or 2% rise in non-interest expense year-over-year. As a result of this revenue growth and continued cost control, net income climbed to $81 thousand for the first quarter of 2025, representing an improvement of $332 thousand compared to the first quarter of 2024. With an on-going repositioning of the Balance Sheet and demonstrated growth, the Bank is well positioned for continued earnings momentum.

About Pacific West Bancorp: Information about the Holding Company's stock is available through the over-the- counter marketplace at www.otcmarkets.com (symbol PWBK).

Pacific West Bank was formed in 2004 by local businesspeople to deliver loan and deposit product solutions through experienced and professional bankers to businesses, nonprofits, professionals, and individuals. The Bank serves the greater Portland/ Vancouver Metro area with offices strategically located in Downtown Portland, Lake Oswego, West Linn, and Vancouver, WA.

Certain statements in this release may be deemed to be "forward-looking statements." Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement.

 

Balance Sheets (amounts in 000s, except per share data and ratios)
			For the Quarter Ended				% Change				% Change
			3/31/2025		12/31/2024		QOQ		3/31/2024		YTD
ASSETS
	Cash & due from banks		$         23,403		$         12,781		83.1 %		$           5,150		354.4 %
	Investments - CD		498		498		0.0 %		747		-33.3 %
	Investments - Debt Securities HTM		7,747		7,746		0.0 %		7,746		0.0 %
	Allowance for HTM		(248)		(267)		-7.1 %		(312)		-20.4 %
	Investments - Debt Securities AFS		42,852		43,282		-1.0 %		39,652		8.1 %
	Net Investments - Debt Securities		50,351		50,761		-0.8 %		47,086		6.9 %
	Investments - Correspondent Stock		1,352		1,560		-13.3 %		1,852		-27.0 %
	Gross loans net of fees		256,272		252,767		1.4 %		249,172		2.8 %
	Allowance for Loans and Leases		(3,554)		(3,553)		0.0 %		(3,201)		11.0 %
		Net loans	252,718		249,214		1.4 %		245,971		2.7 %
	Premises and equipment, net		5,135		4,614		11.3 %		4,484		14.5 %
	Deferred tax asset, net		1,917		1,944		-1.4 %		1,909		0.5 %
	BOLI		4,567		4,527		0.9 %		4,414		3.5 %
	Other assets		2,840		2,899		-2.1 %		3,245		-12.5 %
		Total Assets	$       342,781		$      328,798		4.3 %		$      314,858		8.9 %
LIABILITIES
	Deposits		$       290,678		$       272,709		6.6 %		$       239,698		21.3 %
	Borrowed funds		14,601		19,338		-24.5 %		38,787		-62.4 %
	Other liabilities		3,266		2,863		14.1 %		2,624		24.5 %
		Total Liabilities	$       308,545		$       294,910		4.6 %		281,109		9.8 %
STOCKHOLDERS' EQUITY			34,236		33,889		1.0 %		33,750		1.4 %
		Total Liabilities and Stockholders' Equity	$       342,781		$       328,798		4.3 %		$      314,858		8.9 %
Shares outstanding at end-of-period			2,694,129		2,687,116				2,682,581
Book value per share			$            12.71		$           12.61				$          12.58
Allowance for credit losses to total loans and HTM			1.44 %		1.47 %				1.37 %
Non-performing assets (non-accrual loans and OREO)			$               880		$              840				$                  -
Leverage Ratio			10.52 %		10.29 %				11.14 %

 

Statements of Net Income (amounts in 000s, except per share data and ratios)
			For the Quarter Ended						Year to Date
			3/31/2025		12/31/2024		% Change		3/31/2025		3/31/2024		% Change
INTEREST INCOME
	Loans Interest Income		$      3,622		$      3,633		-0.3 %		$       3,622		$         3,449		5.0 %
	Investments & due from banks		703		835		-15.8 %		703		589		19.3 %
	Loan fee income		56		149		-62.1 %		56		39		44.6 %
		Total interest income	4,381		4,617		-5.1 %		4,381		4,077		7.5 %
INTEREST EXPENSE			1,904		2,069		-8.0 %		1,904		2,041		-6.7 %
NET INTEREST INCOME BEFORE LOAN LOSS PROVISION			2,477		2,548		-2.8 %		2,477		2,036		21.7 %
PROVISION FOR CREDIT LOSSES			-		3		-100.0 %		-		-
NET INTEREST INCOME AFTER LOAN LOSS PROVISION			2,477		2,545		-2.7 %		2,477		2,036		21.7 %
NON-INTEREST INCOME			226		192		18.0 %		226		152		48.9 %
NON-INTEREST EXPENSE			2,568		2,521		1.9 %		2,568		2,517		2.0 %
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES			136		216		-37.1 %		136		(329)		141.2 %
PROVISION (BENEFIT) FOR INCOME TAXES			55		61		-10.1 %		55		(78)		170.0 %
NET INCOME (LOSS)			$           81		$         155		-47.7 %		$            81		$           (251)		132.2 %
Earnings per share - Basic			$        0.03		$        0.06				$         0.03		$          (0.09)
Earnings per share - Diluted			$        0.03		$        0.06				$         0.03		$          (0.09)
Return on average equity			0.96 %		1.81 %				0.96 %		-3.00 %
Return on average assets			0.10 %		0.18 %				0.10 %		-0.32 %
Net interest margin			3.10 %		3.06 %				3.10 %		2.69 %
Efficiency ratio			95 %		92 %				95 %		115 %

 

Jason Wessling
President and Chief Executive Officer
(503) 912-2101
Jwessling@bankpacificwest.com

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SOURCE Pacific West Bancorp

FAQ

What was PWBK's net income for Q1 2025?

Pacific West Bancorp reported a net income of $81,000 ($0.03 per diluted share) for Q1 2025, representing a 132.2% increase from Q1 2024.

How much did PWBK's deposits grow in Q1 2025?

PWBK's deposits grew by $17.9 million (6.6%) compared to Q4 2024, reaching $290.7 million. Year-over-year growth was $50.9 million (21.3%).

What is PWBK's current net interest margin?

PWBK's net interest margin was 3.10% for Q1 2025, representing an increase of 42 basis points or 15.7% compared to Q1 2024.

How much did PWBK reduce its borrowings in Q1 2025?

PWBK retired $4.7 million (24.5%) of borrowings in Q1 2025, reducing total borrowings to $14.6 million, down 62.4% from $38.8 million in Q1 2024.

What is PWBK's loan portfolio yield and credit loss allowance?

PWBK's loan portfolio yield was 5.83% for Q1 2025, with an Allowance for Credit Losses (ACL) of 1.44% of total loans and debt securities.