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

PORTLAND, Ore., Oct. 28, 2025 /PRNewswire/ -- Pacific West Bancorp ("PWBK"), the holding company of Pacific West Bank ("PWB" or "Bank"), today announced third quarter net income of $310 thousand or $0.11 per diluted share.

Third Quarter and year-over-year Highlights:

• Loans totaled $272.1 million and grew by $11.7 million or 4.5%, when compared to the end of the second quarter of 2025, and by $15.7 million or 6.1%, year over year.
• Deposits totaled $316.7 million at quarter end and grew by $41.1 million or 14.9%, compared to the same quarter end in 2024, despite intentional trimming of higher-cost deposits.
• Net interest income for the quarter before provision for credit losses increased by $175 thousand or 6.7%, compared to the second quarter of 2025, and by $1.6 million or 25.1%, year to date compared to the same period in 2024.
• Net income for the third quarter was $310 thousand, a $180 thousand or a 139.1% increase compared to the second quarter of 2025 and was $1.0 million higher, a 205.5% increase year to date compared to the same period in 2024.
• Net interest margin improved during the quarter to 3.17% from 3.11% for the second quarter and the year to date net interest margin of 3.13% represented a 16.4% increase compared to the net interest margin of 2.69% for the same period in 2024.

"This quarter's results reflect accelerating earnings driven by loan growth, stronger loan pricing and a lower cost deposit mix, which supported an expansion in our net interest margin," said Jason Wessling, President and Chief Executive Officer. "While we continue to operate in a dynamic environment, our disciplined approach to balance sheet management positions us well for improving and sustainable long-term earnings. We are also pleased to welcome Aran Loftus, CPA as our new Chief Financial Officer. Aran joins the Bank with a strong background in public accounting and extensive experience in the financial institutions sector, and we look forward to his contributions to our leadership team. Additionally, we are proud that PWB has been recognized by the Portland Business Journal for the second consecutive year as one of the "Best Places to Work" — a reflection of our positive culture, commitment to our employees, and focus on delivering exceptional service to our clients and communities."

Total loans reached $272.1 million at the end of the third quarter with the majority of this growth occurring mid-quarter. As a result, the full benefit to interest income will be realized in future periods. The Bank's loan pipeline and growth momentum is strong heading into the fourth quarter. The growth in loans contributed to a higher provision for credit losses in the third quarter which totaled $171 thousand compared to $120 thousand for the second quarter.

Total deposits at quarter end totaled $316.7 million, reflecting a modest decline quarter over quarter driven by a strategic reduction of $7.5 million in high-cost municipal deposits. Despite this intentional repositioning, year-over-year deposit growth remains strong at $41.1 million, or 14.9%. Ongoing efforts to improve the deposit mix have led to a reduction in interest expense of $518 thousand for an 8.0% decrease over the first nine months of 2025 compared to the same period in 2024, while the Bank experienced strong year-over-year deposit growth from new and existing clients. As a result, net interest margin continued to expand improving to 3.17% for the quarter, up from 3.11% in the prior quarter and up to 3.13% year to date compared to 2.69% for the same period in 2024.

Interest income for the quarter was $4.8 million, up $187 thousand or 4.0% from the prior quarter. For the first nine months of 2025, interest income totaled $13.8 million, an increase of $1.1 million, or 8.4% compared to the same period in 2024.

The Bank's investment portfolio decreased due to principal paydowns, maturities, and a sale, offsetting market value appreciation. During the quarter, PWB sold an investment, realizing a gain of $182 thousand. The Bank continues to monitor the investment portfolio for opportunities to capture unrealized gains and reinvest proceeds into higher yielding loans and securities.

As of the end of the third quarter, stockholders' equity totaled $35.3 million, reflecting an increase of $773 thousand from the prior quarter end. This growth was primarily driven by the retention of earnings and appreciation in market value of the Bank's investment portfolio. The Bank's capital position remains strong, exceeding regulatory minimum requirements, with a community bank leverage ratio of 9.96%.

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