Pacific West Bancorp (PWBK) Announces Fourth Quarter and Full-Year 2022 Earnings
Rhea-AI Summary
Pacific West Bancorp (PWBK) reported strong financial results for Q4 2022, with a net income of $561 thousand, or $0.21 per diluted share. Full-year net income reached $1.8 million, corresponding to $0.69 per diluted share. Interest income rose by $174 thousand or 5.7% from the previous quarter, while loan commitments totaled $17.7 million. The bank continues to maintain robust capital levels with a leverage ratio of 12.59% and no non-accrual loans. Additionally, the net interest margin improved to 4.12%, reflecting effective management of asset yields and costs. Non-interest income saw a significant growth of 82.6% year-over-year, driven by increased participation in a deposit network program.
Positive
- Q4 2022 net income increased to $561 thousand, or $0.21 per diluted share.
- Full-year net income rose to $1.8 million, or $0.69 per diluted share.
- Interest income grew by $174 thousand or 5.7% compared to Q3 2022.
- Loan interest income increased by 31.6% from $6.8 million in 2021 to $8.9 million in 2022.
- Non-interest income up by 82.6% due to deposit network program participation.
- Strong capital levels with a leverage ratio of 12.59%.
Negative
- Deposits decreased by $10 million from the third quarter of 2022.
- Market competition for deposits increased due to rising interest rates.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Fourth Quarter 2022 Results:
- Record operating net income of
$561 thousand $0.21 - Interest income increased by
$174 thousand 5.7% compared to the prior quarter. - Originated
$17.7 million - Total assets as of quarter-end were
$281.9 million - There were no non-accrual loans or past-due loans greater than 30-days as of quarter-end.
- Capital levels as of
December 31, 2022 , remained strong with a leverage ratio of12.59% .
Full-year 2022 Results:
- Record operating net income of
$1.8 million $0.69 - Loan interest income grew by
$2.2 million 31.6% when compared to 2021. - Non-interest income grew by
$222 thousand 82.6% compared to 2021. - Net income grew by
$322 thousand 21.3% compared to 2021.
"Record setting operating profits were driven by our team of experienced bankers that grew the Bank's brand in the Portland Business community in 2022," said
Net interest margin for 2022 was
Non-interest income grew
Asset quality remains strong as there were no loans past-due greater than 30 days, or on non-accrual status as of
Deposits totaled
Accounting rules required the Bank to mark investments held for sale to their market price which caused an adjustment to equity of
About
Pacific West Bank was formed in 2004 by Portland businesspeople to deliver loan and deposit product solutions through experienced and professional bankers to businesses, nonprofits, professionals, and individuals. The Bank serves the greater
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.
Balance Sheets | |||||||||||||
% | % | ||||||||||||
QOQ | 2021 | YTD | |||||||||||
ASSETS | |||||||||||||
Cash & due from banks | $ 13,999 | $ 30,903 | -54.7 % | $ 28,040 | -50.1 % | ||||||||
Investments - CD | 2,485 | 2,485 | 0.0 % | 2,685 | -7.4 % | ||||||||
Investments - | 50,822 | 51,091 | -0.5 % | 35,994 | 41.2 % | ||||||||
Investments - Correspondent Stock | 1,030 | 1,030 | 0.0 % | 954 | 7.9 % | ||||||||
Gross loans net of fees | 203,666 | 196,091 | 3.9 % | 195,527 | 4.2 % | ||||||||
Allowance for loan losses | (2,585) | (2,525) | 2.4 % | (2,225) | 16.2 % | ||||||||
Net loans | 201,081 | 193,566 | 3.9 % | 193,302 | 4.0 % | ||||||||
Premises and equipment, net | 4,175 | 4,140 | 0.9 % | 4,451 | -6.2 % | ||||||||
Deferred tax asset, net | 1,559 | 1,450 | 7.5 % | 1,493 | 4.4 % | ||||||||
BOLI | 4,239 | 4,208 | 0.7 % | 4,104 | 3.3 % | ||||||||
Other assets | 2,475 | 2,415 | 2.5 % | 3,669 | -32.6 % | ||||||||
Total Assets | $ 281,866 | $ 291,288 | -3.2 % | $ 274,693 | 2.6 % | ||||||||
LIABILITIES | |||||||||||||
Deposits | $ 240,090 | $ 250,623 | -4.2 % | $ 231,263 | 3.8 % | ||||||||
Borrowed funds | 5,000 | 5,000 | 0.0 % | 5,000 | 0.0 % | ||||||||
Other liabilities | 2,746 | 2,738 | 0.3 % | 3,306 | -16.9 % | ||||||||
Total Liabilities | 247,836 | 258,361 | -4.1 % | 239,569 | 3.5 % | ||||||||
STOCKHOLDERS' EQUITY | 34,030 | 32,927 | 3.4 % | 35,124 | -3.1 % | ||||||||
Total Liabilities and Stockholders' Equity | $ 281,866 | $ 291,288 | -3.2 % | $ 274,693 | 2.6 % | ||||||||
Shares outstanding at end-of-period | 2,667,633 | 2,665,535 | 2,662,566 | ||||||||||
Book value per share | $ 12.76 | $ 12.35 | $ 13.19 | ||||||||||
Allowance for loan losses to total loans | 1.27 % | 1.29 % | 1.14 % | ||||||||||
Non-performing assets (non-accrual loans & | $ - | $ - | $ 18 | ||||||||||
Leverage Ratio | 12.59 % | 11.30 % | 12.11 % | ||||||||||
Statements of Net Income | |||||||||||||
Quarter Ended | Twelve Months Ended | ||||||||||||
% | % | ||||||||||||
INTEREST INCOME | |||||||||||||
Loans Interest Income | $ 2,540 | $ 2,279 | 11.5 % | $ 8,996 | $ 6,836 | 31.6 % | |||||||
Investments & due from banks | 656 | 660 | -0.5 % | 1,832 | 672 | 172.4 % | |||||||
Loan fee income | 47 | 131 | -64.3 % | 916 | 2,578 | -64.5 % | |||||||
Total interest income | 3,243 | 3,069 | 5.7 % | 11,744 | 10,086 | 16.4 % | |||||||
INTEREST EXPENSE | 399 | 257 | 55.1 % | 891 | 543 | 64.1 % | |||||||
NET INTEREST INCOME BEFORE LOAN LOSS PROVISION | 2,844 | 2,812 | 1.1 % | 10,853 | 9,543 | 13.7 % | |||||||
PROVISION FOR LOAN LOSSES | 60 | 50 | 20.0 % | 360 | 550 | -34.5 % | |||||||
NET INTEREST INCOME AFTER LOAN LOSS PROVISION | 2,784 | 2,762 | 0.8 % | 10,493 | 8,993 | 16.7 % | |||||||
NON-INTEREST INCOME | 192 | 157 | 22.4 % | 491 | 269 | 82.6 % | |||||||
NON-INTEREST EXPENSE | 2,292 | 2,172 | 5.5 % | 8,450 | 7,076 | 19.4 % | |||||||
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | 684 | 747 | -8.5 % | 2,534 | 2,187 | 15.9 % | |||||||
PROVISION (BENEFIT) FOR INCOME | 122 | 224 | -45.3 % | 698 | 673 | 3.8 % | |||||||
NET INCOME (LOSS) | $ 561 | $ 523 | 7.3 % | $ 836 | $ 1,514 | 21.3 % | |||||||
Earnings per share - Basic | $ 0.21 | $ 0.20 | $ 0.69 | $ 0.57 | |||||||||
Earnings per share - Diluted | $ 0.21 | $ 0.20 | $ 0.69 | $ .57 | |||||||||
Return on average equity | 6.66 % | 6.12 % | 5.39 % | 4.40 % | |||||||||
Return on average assets | 0.77 % | 0.69 % | 0.65 % | 0.56 % | |||||||||
Net interest margin | 4.15 % | 3.96 % | 4.12 % | 3.62 % | |||||||||
Efficiency ratio | 76 % | 74 % | 75 % | 72 % | |||||||||
Media Contact:
Chief Executive Officer
(503) 905-2217
tpeterson@bankpacificwest.com
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SOURCE Pacific West Bank