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

PORTLAND, Ore., Jan. 28, 2026 /PRNewswire/ -- Pacific West Bancorp ("PWBK"), the holding company of Pacific West Bank ("PWB" or "Bank"), today reported net income of $126 thousand or $0.05 per diluted share for the quarter ended December 31, 2025. Net income for 2025 was $646 thousand or $0.24 per diluted share.

Fourth Quarter and Year-Over-Year Highlights:

• Loans totaled $276.6 million and grew by $4.4 million or 1.6%, when compared to the end of the third quarter of 2025, and by $23.8 million or 9.4%, year over year.
• Deposits totaled $342.2 million at quarter end and grew by $25.6 million or 8.1%, when compared to the end of the third quarter of 2025, and by $69.5 million or 25.5%, year over year.
• Net interest income for the quarter before provision for credit losses increased by $235 thousand or 8.4%, compared to the third quarter of 2025, and by $2.07 million or 23.4%, when compared to 2024.
• Non-interest income for the quarter was $290 thousand, an increase of $46 thousand or 18.9% compared to prior quarter and was $1.0 million for the year, an increase of $339 thousand or 50.9% compared to the prior year.
• Net income for the fourth quarter was $126 thousand, consistent with prior quarter's net income of $128 thousand, excluding a one-time gain on sale of a security in the third quarter of $182 thousand. For the year ended December 31, 2025, net income was $646 thousand compared to a net loss of $338 thousand during 2024.
• Net interest margin improved during the quarter to 3.37% from 3.17% for the third quarter and the year-to-date net interest margin of 3.19% represented a 14.4% increase compared to the net interest margin of 2.79% for 2024.

"Earnings from operations continue to grow as interest income surpassed $18 million while interest expense declined. This improvement reflects our deliberate strategy to restructure the balance sheet, reduce reliance on higher-cost funding, and enhance asset yields through new production and loan repricing. We also advanced key income diversification efforts, driving non-interest income to $1.0 million for 2025. Together, these actions are positioning the Bank for sustained, profitable growth" said Jason Wessling, President and Chief Executive Officer.

"We enter 2026 with momentum," Wessling added. "Loan pipelines remain strong and our margin continues to benefit from both asset–yield strength and ongoing deposit–mix improvements. As we look ahead, our focus remains on disciplined balance–sheet management and delivering high–touch, relationship–based banking to the businesses and communities we serve."

Total loans grew to $276.6 million at year end as the Bank continued to capitalize on a strong loan pipeline of new and existing clients. Fourth quarter loan interest income totaled $4.01 million, an increase of $146 thousand or 3.8% compared to the third quarter of 2025, and up $1.1 million or 7.9% compared to 2024. The increases in loan interest income are the results of both organic growth and portfolio repricing as loans funded in prior periods at historically low interest rates begin to renew and contractually reprice.

Interest income for the quarter was $4.9 million, up $62 thousand or 1.3% from the prior quarter and for the year ended December 31, 2025, interest income totaled $18.7 million, an increase of $1.3 million or 7.7% compared to 2024.

In the fourth quarter, the Bank recorded a higher provision for credit losses of $248 thousand due to a charge off on one lending relationship. There were no new relationships added to non-performing assets during the quarter.

Total deposits at quarter end totaled $342.2 million, reflecting an increase of $25.6 million over the prior quarter and a $69.5 million increase year over year. The decrease in quarter over quarter interest expense of $173 thousand reflects the Bank's ability to quickly respond to interest rate cuts and ongoing strategic initiatives to rebalance the deposit portfolio and pursue low-cost commercial deposits. Non-interest bearing deposits ended the year at $78.7 million, an increase of $8.3 million or 11.8% year over year. These efforts contributed to net interest margin expansion to 3.37% for the quarter, up from 3.17% in the prior quarter and up to 3.19% for the year compared to 2.79% for 2024.

As of December 31, 2025, stockholders' equity totaled $35.7 million, reflecting an increase of $1.8 million compared to the prior year end. This growth was driven by retention of earnings and continued appreciation in market value of the Bank's investment portfolio. The Bank's capital position remains strong and allows for continued balance sheet growth, exceeding regulatory minimum requirements, with a Community Bank Leverage Ratio of 9.80%.

Income before taxes and provision for credit losses increased to $1.6 million in 2025, compared to a net loss before taxes and provision for credit losses in 2024. The Bank's effective tax rate for 2025 rose relative to the prior year due to expiring tax benefits and the disproportionate impact of the Oregon Corporate Activities Tax. Driven by strong core revenue generation and an improved funding mix, net income for 2025 reached $646 thousand, marking a meaningful improvement from the prior year's net loss and establishing a stronger foundation entering 2026.

About Pacific West Bancorp: Information about Pacific West Bancorp'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.

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

SOURCE Pacific West Bancorp