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

PORTLAND, Ore., Oct. 29, 2024 /PRNewswire/ -- Pacific West Bancorp (PWBK), the holding company of Pacific West Bank ("PWB"), today announced a third quarter net loss of ($12) thousand.

Third Quarter Highlights:

• Net deposits grew by $27.9 million, an 11.3% increase during the third quarter, consisting of a $52.2 million growth in Core Deposits offset by a $24.3 million retirement of non-core deposits.
• Loans grew by $2.3 million or 1% during the third quarter.
• Interest income increased by $478 thousand or 11.6%.
• Borrowings decreased by $4 million or 10.9%.
• Assets at the end of the third quarter were $345 million, an increase of $24.2 million or 7.5%, compared to the prior quarter-end.
• Net interest margin increased by 13 basis points.

"Our third-quarter results highlight our ongoing efforts and achievements, with increased core deposits, reductions in higher-cost non-core deposits, and the retirement of borrowings. These strategic moves strengthened our financial position by increasing our net interest margin and bringing PWB's income close to breakeven," said Jason Wessling, PWB's President and CEO. "Additionally, operational efficiencies have improved by reducing non-interest expense during the quarter by $174 thousand or 6.9%, when compared to the first quarter of 2024."

Total deposits at the end of the quarter were $275 million, an overall increase of 11.3% or $27.9 million. Expensive non-core deposits were reduced by $24.3 million, and borrowings were paid down. Additional strategic balance sheet repositioning and loan repricing resulted in increase in average asset yield by 13 basis points during the quarter from 5.41% to 5.54%. Net interest margin increased by 13 basis points to 2.76% compared to the previous quarter. "Our solid deposit growth this quarter is a testament to our team's dedication to exceptional service and the hard work that has propelled our brand forward in the market. Our continued momentum is a direct result of coordinated efforts from all areas of the Bank, demonstrating our commitment to building strong client relationships and delivering value at every touchpoint," said Lisa Fajardo-Faust, PWB's Chief Banking Officer.

At the end of the third quarter, total loans were $256 million, an increase of $2.3 million or 1%, when compared to the end of the second quarter. The quarter-end loan to deposit ratio improved to 93%, compared to prior quarter-end ratio of 103%.  The Bank originated $8 million in new loan commitments during third quarter with a weighted average rate of 7.96%. Loan quality remained consistent with no loans past due greater than 30 days and one loan on non-accrual status. Loan yield continues to increase as 15% of PWB's fixed-rate commercial real estate portfolio is set to mature or reprice over the next two quarters.     

"Our Bank is well-positioned to benefit from potential rate cuts while improving earnings momentum. The market's demand for consultative banking relationships aligns perfectly with our Bank's core values. These relationships are the cornerstone of our approach, enabling us to deliver tailored financial solutions that meet our business clients' evolving needs," said Ed Kawasaki, PWB's Chairman.

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