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

(Neutral)

Rhea-AI Summary

Pacific West Bancorp (PWBK) reported Q4 2024 net income of $155,000 ($0.06 per diluted share), with a full-year 2024 net loss of ($338,000) or ($0.13) per diluted share. Key Q4 highlights include core deposits growth of $7.2M, $11.0M growth in unfunded lending commitments, and retirement of $13.5M in borrowings.

For full-year 2024, interest income reached $17.4M, up 19.8% from 2023. Core deposits grew by $54.4M (25.15%), while non-interest-bearing deposits increased by $7.0M (11.06%). The bank maintained a 'well-capitalized' status with a 10.29% leverage ratio. Net interest margin improved to 3.06% in Q4, up 31 basis points from Q3. Total deposits reached $272.7M, marking a 14.8% increase year-over-year, with core deposits representing 99.23% of total deposits.

Positive

Q4 net income of $155,000 after previous losses
Interest income grew 19.8% to $17.4M in 2024
Core deposits increased 25.15% year-over-year
Net interest margin improved 31 basis points to 3.06% in Q4
Reduction of 56.8% in expensive non-core funding
Strong loan quality with minimal past-due accounts

Negative

Full-year 2024 net loss of ($338,000)
Modest total assets growth of only 2.8% year-over-year

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01/23/2025 - 04:00 PM

PORTLAND, Ore., Jan. 23, 2025 /PRNewswire/ -- Pacific West Bancorp (PWBK), the holding company of Pacific West Bank ("PWB"), today announced a fourth quarter net income of $155 thousand or $0.06 per diluted share, bringing its full-year 2024 net loss to ($338) thousand or ($0.13) per diluted share.

Fourth Quarter Highlights:

Core deposits grew by $7.2 million, while retiring $10.0 million in non-core funding.
Unfunded lending commitments grew by about $11.0 million and are expected to fund during the first half of 2025.
PWB retired $13.5 million, or 41.1% of borrowings, further improving our net non-core funding ratio.
Interest expense of $2.1 million decreased by $234.3 thousand or 10.2% compared to prior quarter.
Net interest income before provision increased by $267.4 thousand or 11.7%.
Net interest margin increased by 31 basis points compared to prior quarter.

2024 Full Year Highlights:

Interest income of $17.4 million grew by $2.9 million or 19.8% during 2024.
Core deposits grew by $54.4 million or 25.15% compared to prior yearend.
Non-interest-bearing deposits increased $7.0 million or 11.06% compared to prior yearend.
PWB retired $25.4 million or 56.8% of borrowings compared to prior yearend.
Total assets growth was $8.8 million or 2.8% compared to prior yearend.

"Pacific West Bank's momentum accelerated in the second half of 2024 as we significantly increased core deposits, allowing us to reduce higher-cost funding, such as brokered deposits and borrowings. This shift in our funding mix, combined with strong new loan pricing and repricing, led to a new record for interest income. Our team of seasoned Bankers remain focused on building lasting relationships and delivering exceptional service, solidifying PWB's reputation as the premier business bank in Portland and Southwest Washington," said PWB's President and CEO Jason Wessling.

Interest income totaled $17.4 million in 2024, compared to $14.5 million in the prior year, which was driven by approximately $18.0 million of loans that repriced in 2024, along with balance sheet repositioning. These changes increased the Bank's average asset yield by 47 basis points year-over-year from 5.03% in 2023 to 5.50% in 2024. While interest expense trended higher in 2024, the Bank's cost of funds during the fourth quarter decreased by 30 basis points, driven by reduction in short-term market rates and a decrease in the Bank's exposure to higher rate non-core fundings. All these changes resulted in a 31 basis points increase in net interest margin, from 2.76% in the third quarter to 3.06% in the fourth quarter of 2024.

Deposits totaled $272.7 million at the end of 2024, which was an increase of $35.2 million or 14.8% over the prior year. In addition, core deposits increased by $54.4 million or 25.15%, including $7.0 million or 10% growth in non-interest-bearing deposits compared to yearend 2023. As of yearend 2024, core deposits totaled $270.6 million or 99.23% of total deposits. "Our strategic focus on creating specialized niches by delivering excellent service for digital partners, social impact organizations, and professional services, has been a driving force behind the Bank's core deposit growth throughout 2024. This includes significant growth in non-interest-bearing deposits, which underscores the trust our clients place in us. As a Benefit Corporation for Good, we remain committed to positively impacting the communities we serve and aligning our growth with purpose and responsibility," said PWB's Chief Banking Officer, Lisa Faust.

The Bank remains "well-capitalized" with a leverage ratio of 10.29%, reflecting its solid financial foundation. Loan demand continued, as the Bank originated $11.0 million in new loan commitments during the quarter at a weighted average rate of 7.59%. Loan quality remained consistent with no loans past due greater than 30 days and one loan on non-accrual. As previously mentioned, the strategic repositioning of the balance sheet, which included a $25.5 million or 56.8% reduction in expensive non-core funding compared to the year-end 2023, has further strengthened the Bank's financial position. The Bank is well-positioned to deliver continued earnings improvement and asset growth as it moves into 2025.

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.

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

12/31/2024

09/30/2024

QOQ

12/31/2023

YTD

ASSETS

Cash & due from banks

$ 12,781

$ 23,599

-45.8 %

$ 10,693

19.5 %

Investments - CD

498

0.0 %

747

-33.3 %

Investments - Debt Securities HTM

7,746

0.0 %

7,746

0.0 %

Allowance for HTM

(267)

(284)

-5.8 %

(256)

4.3 %

Investments - Debt Securities AFS

43,282

45,456

-4.8 %

41,053

5.4 %

Net Investments - Debt Securities

50,761

52,919

-4.1 %

48,543

4.6 %

Investments - Correspondent Stock

1,560

2,032

-23.2 %

1,424

9.5 %

Gross loans net of fees

252,767

256,402

-1.4 %

248,402

1.8 %

Allowance for Loans and Leases

(3,553)

(3,533)

0.6 %

(3,257)

9.1 %

Net loans

249,214

252,869

-1.4 %

245,146

1.7 %

Premises and equipment, net

4,614

4,259

8.3 %

4,629

-0.3 %

Deferred tax asset, net

1,944

2,012

-3.4 %

1,806

7.6 %

BOLI

4,527

4,487

0.9 %

4,379

3.4 %

Other assets

2,899

2,692

7.7 %

2,616

10.8 %

Total Assets

$ 328,798

$ 345,367

-4.8 %

$ 319,983

2.8 %

LIABILITIES

Deposits

$ 272,709

$ 275,561

-1.0 %

$ 237,470

14.8 %

Borrowed funds

19,338

32,838

-41.1 %

44,782

-56.8 %

Other liabilities

2,863

2,743

4.4 %

3,681

-22.2 %

Total Liabilities

$ 294,910

311,142

-5.2 %

285,933

3.1 %

STOCKHOLDERS' EQUITY

33,889

34,225

-1.0 %

34,051

-0.48 %

Total Liabilities and Stockholders' Equity

$ 328,798

$ 345,367

-4.8 %

$ 319,983

2.8 %

Shares outstanding at end-of-period

2,687,116

2,685,943

2,676,564

Book value per share

$ 12.61

$ 12.74

$ 12.72

Allowance for credit losses to total loans
and HTM

1.47 %

1.45 %

1.37 %

Non-performing assets (non-accrual loans
and OREO)

$ 840

$ -

Leverage Ratio

10.29 %

10.16 %

11.45 %

Statements of Net Income

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

For the Quarter Ended

Year to Date

12/31/2024

9/30/2024

%
Change

12/31/2024

12/31/2023

%
Change

INTEREST INCOME

Loans Interest Income

$ 3,633

$ 3,616

0.5 %

$ 14,152

$ 11,488

23.2 %

Investments & due from banks

835

881

-5.3 %

2,906

2,674

8.7 %

Loan fee income

149

71.5 %

325

350

-7.1 %

Total interest income

4,617

4,584

0.7 %

17,383

14,512

19.8 %

INTEREST EXPENSE

2,069

2,303

-10.2 %

8,528

5,101

67.2 %

NET INTEREST INCOME BEFORE LOAN
LOSS PROVISION

2,548

2,280

11.7 %

8,856

9,411

-5.9 %

PROVISION FOR CREDIT LOSSES

101

-97.0 %

169

535

-68.4 %

NET INTEREST INCOME AFTER LOAN
LOSS PROVISION

2,545

2,179

16.8 %

8,687

8,876

-2.1 %

NON-INTEREST INCOME

192

167

14.8 %

666

620

7.5 %

NON-INTEREST EXPENSE

2,521

2,343

7.6 %

9,763

9,705

0.6 %

INCOME (LOSS) BEFORE PROVISION
FOR INCOME TAXES

216

6,149.5 %

(410)

(209)

96.3 %

PROVISION (BENEFIT) FOR INCOME
TAXES

308.0 %

(72)

-318.5 %

NET INCOME (LOSS)

$ 155

$ (12)

1,441.7 %

$ (338)

$ (242)

39.6 %

Earnings per share - Basic

$ 0.06

$ (0.00)

$ (0.13)

$ (0.09 )

Earnings per share - Diluted

$ 0.06

$ (0.00)

$ (0.13)

$ (0.09)

Return on average equity

1.81 %

-0.14 %

-1.00 %

-0.72 %

Return on average assets

0.18 %

-0.01 %

-0.10 %

-0.08 %

Net interest margin

3.06 %

2.76 %

2.79 %

3.24 %

Efficiency ratio

92 %

96 %

103 %

97 %

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

View original content to download multimedia:https://www.prnewswire.com/news-releases/pacific-west-bancorp-pwbk-announces-fourth-quarter-financial-results-302358992.html

SOURCE Pacific West Bancorp

FAQ

What was PWBK's net income for Q4 2024?

Pacific West Bancorp reported a net income of $155,000 or $0.06 per diluted share for Q4 2024.

How much did PWBK's core deposits grow in 2024?

PWBK's core deposits grew by $54.4 million or 25.15% compared to the previous year.

What was PWBK's interest income growth in 2024?

PWBK's interest income grew by $2.9 million or 19.8% to $17.4 million in 2024.

What is PWBK's current leverage ratio?

PWBK maintains a leverage ratio of 10.29%, qualifying as 'well-capitalized'.

How much did PWBK reduce its borrowings in 2024?

PWBK retired $25.4 million or 56.8% of borrowings compared to the previous year.

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

Rhea-AI Summary

Positive

Negative

News Market Reaction – PWBK

FAQ

What was PWBK's net income for Q4 2024?

How much did PWBK's core deposits grow in 2024?

What was PWBK's interest income growth in 2024?

What is PWBK's current leverage ratio?

How much did PWBK reduce its borrowings in 2024?

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