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

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.

Jason Wessling
President and Chief Executive Officer
(503) 912-2101
[email protected]

SOURCE Pacific West Bancorp