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

Rhea-AI Summary

Pacific West Bancorp (PWBK) reported net income of $126 thousand for Q4 2025 and $646 thousand for full-year 2025, reversing a 2024 net loss. Loans were $276.6 million and deposits were $342.2 million at year end.

Net interest income rose and net interest margin improved to 3.37% in Q4 and 3.19% for 2025; non-interest income reached $1.0 million. Provision for credit losses included a $248 thousand charge-off in Q4. Stockholders' equity was $35.7 million and the Community Bank Leverage Ratio stood at 9.80%.

Positive

• Net interest income +23.4% year-over-year
• Deposits +25.5% year-over-year to $342.2M
• Full-year net income turned positive at $646K
• Non-interest income reached $1.0M for 2025

Negative

• Quarter provision for credit losses included a $248K charge-off
• Q4 net income remained small at $126K, modest profitability
• Net interest margin improvement still limited to 3.19% for year

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.

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 (amounts in 000s, except per share data and ratios)
					For the Quarter Ended									% Change							% Change
					12/31/2025				9/30/2025					QoQ			12/31/2024				YoY
ASSETS
	Cash & Due from Banks				$         53,516				$         30,228					77.0 %			$         12,781				318.7 %
	Investments - CD				-				-					0.0 %			498				(100.0 %)
	Investments - Debt Securities AFS				39,308				40,475					(2.9 %)			43,338				(9.3 %)
	Investments – Debt Securities HTM				5,997				6,747					(11.1 %)			7,746				(22.6 %)
	Allowance for Credit Losses - HTM Invest.				(174)				(168)					3.6 %			(267)				(34.8 %)
	Investments - Debt Securities, Net				45,131				47,054					(4.1 %)			50,817				(11.2 %)
	Investments - Correspondent Stock				424				426					(0.5 %)			1,560				(72.8 %)
	Gross Loans, Net of Fees				276,566				272,140					1.6 %			252,767				9.4 %
	Allowance for Credit Losses				(3,192)				(3,207)					(0.5 %)			(3,553)				(10.2 %)
		Loans, Net			273,374				268,933					1.7 %			249,214				9.7 %
	Premises and Equipment, Net				4,900				4,788					2.3 %			4,614				6.2 %
	Deferred Tax Asset, Net				1,584				1,762					(10.1 %)			1,944				(18.5 %)
	BOLI				4,692				4,652					0.9 %			4,527				3.6 %
	Other Assets				2,411				2,454					(1.8 %)			2,843				(15.2 %)
		Total Assets			$       386,032				$      360,297					7.1 %			$      328,798				17.4 %
LIABILITIES
	Deposits				$       342,244				$       316,675					8.1 %			$       272,709				25.5 %
	Borrowed Funds				5,042				5,045					(0.1 %)			19,338				(73.9 %)
	Other Liabilities				3,158				3,237					(4.5 %)			2,862				10.3 %
		Total Liabilities			350,444				324,957					7.8 %			294,909				18.8 %
STOCKHOLDERS' EQUITY					35,653				35,340					0.9 %			33,889				5.2 %
		Total Liabilities and Stockholders' Equity			$       386,032				$      360,297					7.1 %			$       328,798				17.4 %
Shares Outstanding at End-of-period					2,697,153				2,697,153								2,687,116
Book Value Per Share					$           13.22				$          13.10								$           12.61
Allowance for Credit Losses to Total Loans and HTM					1.19 %				1.21 %								1.47 %
Non-performing Assets (Non-accrual Loans and OREO)					$           7,963				$           8,332								$              840
Leverage Ratio					9.80 %				9.96 %								10.29 %
Statements of Net Income (amounts in 000s, except per share data and ratios)
				For the Quarter Ended											Year to Date
				12/31/2025			9/30/2025				% Change				12/31/2025				12/31/2024				% Change
INTEREST INCOME
		Loan Interest Income		$      4,011			$       3,865				3.8 %				$     15,264				$         14,152				7.9 %
		Investments & Due from Banks		799			862				(7.3 %)				3,187				2,906				9.7 %
		Loan Fee Income		73			94				(22.3 %)				268				325				(17.5 %)
			Total Interest Income	4,883			4,821				1.3 %				18,719				17,383				7.7 %
INTEREST EXPENSE				1,852			2,025				(8.5 %)				7,793				8,527				(8.6 %)
NET INTEREST INCOME BEFORE LOAN LOSS PROVISION				3,031			2,796				8.4 %				10,926				8,856				23.4 %
PROVISION FOR CREDIT LOSSES				248			171				45.0 %				539				176				206.3 %
NET INTEREST INCOME AFTER LOAN LOSS PROVISION				2,783			2,625				6.0 %				10,387				8,680				19.7 %
NON-INTEREST INCOME				290			244				18.9 %				1,005				666				50.9 %
NON-INTEREST EXPENSE				2,752			2,609				5.5 %				10,476				9,756				7.4 %
GAIN ON SALE OF SECURITY				-			182				(100.0 %)				182				-				100.0 %
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES				321			442				(27.4 %)				1,098				(410)				367.8 %
PROVISION (BENEFIT) FOR INCOME TAXES				195			132				47.7 %				452				(72)				727.8 %
NET INCOME (LOSS)				$         126			$         310				(59.4 %)				$          646				$           (338)				291.1 %
Earnings Per Share - Basic				$        0.05			$        0.11								$        0.24				$          (0.13)
Earnings Per Share - Diluted				$        0.05			$        0.11								$        0.24				$          (0.13)
Return on Average Equity				1.40 %			3.53 %								1.87 %				(1.00) %
Return on Average Assets				0.13 %			0.34 %								0.18 %				(0.10) %
Net Interest Margin				3.37 %			3.17 %								3.19 %				2.79 %
Efficiency Ratio				88 %			80 %								88 %				103 %

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

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SOURCE Pacific West Bancorp

FAQ

What were Pacific West Bancorp (PWBK) Q4 2025 earnings per share and net income?

PWBK reported $0.05 per diluted share and $126 thousand net income for Q4 2025. According to the company, full-year 2025 net income was $646 thousand, reversing a 2024 net loss and showing improved core revenue and margins.

How did PWBK's loans and deposits change by year-end 2025?

Loans totaled $276.6 million and deposits $342.2 million at December 31, 2025. According to the company, deposits rose 25.5% year-over-year while loans increased 9.4% year-over-year, reflecting strong pipeline activity.

What drove Pacific West Bancorp's margin and interest income improvements in 2025?

Margin gains were driven by higher asset yields and lower funding costs, lifting net interest margin to 3.19% for 2025. According to the company, balance-sheet restructuring, loan repricing, and deposit mix shifts produced the net interest income improvement.

Did PWBK record any credit issues in Q4 2025 that affected results?

Yes. The bank recorded a $248 thousand provision for credit losses in Q4 2025 due to a charge-off on one lending relationship. According to the company, there were no new non-performing relationships added during the quarter.

What is Pacific West Bancorp's capital position at year-end 2025 (PWBK)?

Stockholders' equity was $35.7 million and the Community Bank Leverage Ratio was 9.80% at December 31, 2025. According to the company, equity rose by $1.8 million year-over-year from retained earnings and investment portfolio appreciation.