How did merger-related costs affect Pacific West Bancorp's (PWBK) Q1 2026 results?

Merger-related expenses of $425,000 were recorded in March, reducing reported net income. According to Pacific West Bancorp, excluding those expenses would raise Q1 net income to about $455,000 , or $0.17 diluted EPS.

Pacific West Bancorp ("PWBK") Announces First Quarter 2026 Financial Results

Q: What did Pacific West Bancorp (PWBK) report for Q1 2026 net income?

Pacific West Bancorp reported $155,000 net income, or $0.06 diluted EPS for Q1 2026. According to Pacific West Bancorp, results include $425,000 of merger-related expenses; excluding those costs adjusted net income would be about $455,000 .

Q: How large were Pacific West Bancorp (PWBK) total assets and deposits at March 31, 2026?

Total assets were $403.4 million and deposits were $359.8 million at March 31, 2026. According to Pacific West Bancorp, gross client deposits including sweep accounts totaled $399.1 million , reflecting year-over-year growth.

Q: What drove Pacific West Bancorp's (PWBK) revenue and income changes in Q1 2026?

Net interest income was $3.1 million and non-interest income was $348,000 in Q1 2026. According to Pacific West Bancorp, net interest income rose from repricing while non-interest income benefited from higher deposit activity and sweep account flows.

Q: What happened to Pacific West Bancorp's (PWBK) loan portfolio in Q1 2026?

Total loans were $270.1 million at quarter end, down $6.9 million year-to-date. According to Pacific West Bancorp, the decline reflects strategic risk reduction and scheduled maturities while loan interest income remained comparable to the prior quarter.

Rhea-AI Impact

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Rhea-AI Sentiment

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Rhea-AI Summary

Pacific West Bancorp (PWBK) reported net income of $155 thousand or $0.06 diluted EPS for Q1 2026, including $425 thousand merger-related expenses. Total assets reached $403.4 million, deposits were $359.8 million, and net interest income was $3.1 million.

Excluding merger costs, adjusted net income would be about $455 thousand or $0.17 diluted EPS.

Positive

Total assets $403.4M (+17.7% YoY)
Deposits $359.8M (+23.8% YoY)
Net interest income $3.1M (Q1; +23.3% YoY)
Non-interest income $348K (+54% YoY)

Negative

Net income $155K in Q1, reduced by $425K merger expense
Total loans $270.1M, down $6.9M year-to-date

News Market Reaction – PWBK

+6.10%

+6.10% Session close to close

In the Apr 30 session, PWBK gained 6.10%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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04/28/2026 - 05:28 PM

PORTLAND, Ore., April 28, 2026 /PRNewswire/ -- Pacific West Bancorp ("PWBK"), the holding company of Pacific West Bank ("PWB" or "Bank"), today reported net income of $155 thousand, or $0.06 per diluted share, for the quarter ended March 31, 2026. Results for the quarter reflect $425 thousand of merger-related expenses incurred during the quarter and recorded in March 2026. Excluding these expenses, net income would have been approximately $455 thousand for the quarter, or $0.17 per diluted share.

First Quarter and Year-Over-Year Highlights:

Total assets were $403.4 million at March 31, 2026, compared to $386.0 million at December 31, 2025, an increase of $17.3 million or 4.5% year-to-date and an increase of $60.6 million or 17.7% year-over-year.
Deposits totaled $359.8 million and grew by $17.6 million or 5.1% compared to $342.2 million at December 31, 2025, and by $69.2 million or 23.8% year-over-year.
Net interest income for the quarter before provision for credit losses was comparable to the prior quarter at $3.1 million and increased $576 thousand or 23.3% compared to the quarter ended March 31, 2025.
Non-interest income for the quarter was $348 thousand, an increase of $58 thousand or 20% over the prior quarter and an increase of $122 thousand or 54% year-over-year.
Provision for credit losses for the quarter was $63 thousand compared to $248 thousand in the prior quarter. The allowance for credit losses on loans totaled $3.3 million, approximately 1.22% of gross loans, as of March 31, 2026.
Net income for the first quarter was $155 thousand, an increase of $29 thousand or 23% compared to the prior quarter and an increase of $74 thousand or 91% compared to the quarter ended March 31, 2025.

"We are excited about the enhanced product offerings and expanded resources that our merger with First Security Bank of Washington, announced in February, will bring to our customers and communities," said Jason Wessling President and CEO of PWBK.

"First quarter results reflect the strength of our core banking franchise, with solid deposit growth and an expansion in both net interest income and non-interest income. During the quarter, the Bank also surpassed $400 million in total assets, marking an important growth milestone. While these underlying trends demonstrate continued momentum across our business, reported results were impacted by expenses associated with the previously announced merger. We remain committed to disciplined execution and to supporting the clients and communities we serve as we move forward," continued Wessling.

In addition to the $359.8 million deposits reported, the Bank had $39.3 million deposits held off-balance sheet in sweep accounts for a total of $399.1 million of gross client deposits, an increase of $46.2 million or 13%, year-to-date and an increase of $108.5 million or 37%, year-over-year. This contributes to the Bank's strong liquidity position and presents opportunities for additional asset allocation strategies. Additionally, increases in deposit balances and underlying activity positively contributed to non-interest income growth of $58 thousand quarter to quarter. The increase in interest expense during the quarter of $164 thousand or 8.9% was a result of significant deposit growth during the quarter.

Total loans ended the quarter at $270.1 million, down $6.9 million year-to-date. The decline was the result of strategic decisions to reduce portfolio risk and scheduled maturities. Despite the decline in total loans, loan interest income was comparable to the prior quarter due to ongoing contractual repricing and management's focus on maintaining credit quality and appropriate pricing in the current rate environment.

Total non-interest expense was elevated during March 2026 due to $425 thousand of merger-related expenses. Excluding the merger expenses, net income would have been approximately $455 thousand for the quarter, an increase of $329 thousand compared to the prior quarter and an increase of $374 thousand over the quarter ended March 31, 2025, reflecting improvement in core earnings.

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.

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.

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

Balance Sheets

(amounts in 000s, except per share data and ratios)

For the Quarter Ended

% Change

3/31/2026

12/31/2025

QoQ

3/31/2025

YoY

ASSETS

Cash & Due from Banks

$ 77,399

$ 53,516

44.6 %

$ 23,403

230.7 %

Investments - CD

0.0 %

498

(100.0 %)

Investments - Debt Securities AFS

39,612

39,308

0.8 %

42,852

(7.6 %)

Investments – Debt Securities HTM

5,997

0.0 %

7,747

(22.6 %)

Allowance for Credit Losses - HTM Invest.

(132)

(174)

(24.1 %)

(248)

(46.8 %)

Investments - Debt Securities, Net

45,477

45,131

0.8 %

50,351

(9.7 %)

Investments - Correspondent Stock

458

424

8.0 %

1,352

(66.1 %)

Loans Receivable, Net of Fees

269,629

276,566

(2.5 %)

256,272

5.2 %

Allowance for Credit Losses

(3,294)

(3,192)

3.2 %

(3,554)

(7.3 %)

Loans Receivable, Net

266,335

273,374

(2.6 %)

252,718

5.4 %

Premises and Equipment, Net

4,629

4,900

(5.5 %)

5,135

(9.9 %)

Deferred Tax Asset, Net

1,540

1,584

(2.8 %)

1,917

(19.7 %)

BOLI

4,733

4,692

0.9 %

4,567

3.6 %

Other Assets

2,788

2,411

15.6 %

2,840

(1.8 %)

Total Assets

$ 403,359

$ 386,032

4.5 %

$ 342,781

17.7 %

LIABILITIES

Deposits

$ 359,842

$ 342,244

5.1 %

$ 290,678

23.8 %

Borrowed Funds

5,039

5,042

(0.1 %)

14,601

(65.5 %)

Other Liabilities

2,735

3,093

(11.6 %)

3,266

(16.3 %)

Total Liabilities

367,616

350,379

4.9 %

308,545

19.1 %

STOCKHOLDERS' EQUITY

35,743

35,653

0.3 %

34,236

4.4 %

Total Liabilities and Stockholders' Equity

$ 403,359

$ 386,032

4.5 %

$ 342,781

17.7 %

Shares Outstanding at End-of-Period

2,705,631

2,697,153

2,694,129

Book Value Per Share

$ 13.21

$ 13.22

$ 12.71

Allowance for Credit Losses to Total Loans and HTM

1.24 %

1.19 %

1.44 %

Non-performing Assets (Non-accrual Loans and OREO)

$ 7,878

$ 7,963

$ 880

Leverage Ratio

9.03 %

9.80 %

10.52 %

Statements of Net Income

(amounts in 000s, except per share data and ratios)

For the Quarter Ended

Year to Date

3/31/2026

12/31/2025

% Change

3/31/2026

3/31/2025

% Change

INTEREST INCOME

Loan Interest Income

$ 3,931

$ 4,011

(2.0 %)

$ 3,931

$ 3,622

8.5 %

Investments & Due from Banks

1,060

799

32.7 %

1,060

703

50.8 %

Loan Fee Income

6.8 %

39.3 %

Total Interest Income

5,069

4,883

3.8 %

5,069

4,381

15.7 %

INTEREST EXPENSE

2,016

1,852

8.9 %

2,016

1,904

5.9 %

NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES

3,053

3,031

0.7 %

3,053

2,477

23.3 %

PROVISION FOR CREDIT LOSSES

248

(74.6 %)

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES

2,990

2,783

7.4 %

2,990

2,477

20.7 %

NON-INTEREST INCOME

348

290

20.0 %

348

226

54.0 %

NON-INTEREST EXPENSE

3,118

2,752

13.3 %

3,118

2,567

21.5 %

INCOME BEFORE PROVISION FOR INCOME TAXES

220

321

(31.5 %)

220

136

61.8 %

PROVISION FOR INCOME TAXES

195

(66.7 %)

18.2 %

NET INCOME

$ 155

$ 126

23.0 %

$ 155

$ 81

91.4 %

Earnings Per Share - Basic

$ 0.06

$ 0.05

$ 0.06

$ 0.03

Earnings Per Share - Diluted

$ 0.06

$ 0.05

$ 0.06

$ 0.03

Return on Average Equity

1.75 %

1.40 %

1.75 %

0.96 %

Return on Average Assets

0.16 %

0.13 %

0.16 %

0.10 %

Net Interest Margin

3.16 %

3.37 %

3.16 %

3.10 %

Efficiency Ratio

92 %

88 %

92 %

95 %

View original content to download multimedia:https://www.prnewswire.com/news-releases/pacific-west-bancorp-pwbk-announces-first-quarter-2026-financial-results-302756330.html

SOURCE Pacific West Bancorp

FAQ

What did Pacific West Bancorp (PWBK) report for Q1 2026 net income?

Pacific West Bancorp reported $155,000 net income, or $0.06 diluted EPS for Q1 2026. According to Pacific West Bancorp, results include $425,000 of merger-related expenses; excluding those costs adjusted net income would be about $455,000.

How large were Pacific West Bancorp (PWBK) total assets and deposits at March 31, 2026?

Total assets were $403.4 million and deposits were $359.8 million at March 31, 2026. According to Pacific West Bancorp, gross client deposits including sweep accounts totaled $399.1 million, reflecting year-over-year growth.

What drove Pacific West Bancorp's (PWBK) revenue and income changes in Q1 2026?

Net interest income was $3.1 million and non-interest income was $348,000 in Q1 2026. According to Pacific West Bancorp, net interest income rose from repricing while non-interest income benefited from higher deposit activity and sweep account flows.

What happened to Pacific West Bancorp's (PWBK) loan portfolio in Q1 2026?

Total loans were $270.1 million at quarter end, down $6.9 million year-to-date. According to Pacific West Bancorp, the decline reflects strategic risk reduction and scheduled maturities while loan interest income remained comparable to the prior quarter.

Pacific West Bancorp ("PWBK") Announces First Quarter 2026 Financial Results

Rhea-AI Summary

Positive

Negative

News Market Reaction – PWBK

FAQ

What did Pacific West Bancorp (PWBK) report for Q1 2026 net income?

How large were Pacific West Bancorp (PWBK) total assets and deposits at March 31, 2026?

What drove Pacific West Bancorp's (PWBK) revenue and income changes in Q1 2026?

How did merger-related costs affect Pacific West Bancorp's (PWBK) Q1 2026 results?

What happened to Pacific West Bancorp's (PWBK) loan portfolio in Q1 2026?

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