Pacific West Bancorp ("PWBK") Announces Second Quarter 2026 Financial Results
Rhea-AI Summary
Pacific West Bancorp (OTC:PWBK) reported second quarter 2026 net income of $450 thousand, or $0.16 per diluted share. According to Pacific West Bancorp, results included approximately $222 thousand of merger-related expenses; excluding these, adjusted net income would have been about $607 thousand, or $0.22 per diluted share.
Total assets reached $420.0 million, up 4.1% quarter-over-quarter and 16.2% year-over-year. Deposits were $379.7 million, increasing 5.5% sequentially and 19.1% year-over-year, while loans were $264.7 million, up 1.6% from June 30, 2025. Net interest income before provision for credit losses was $2.9 million for the quarter and $6.0 million year-to-date, up 17.2% from the prior-year period.
Non-interest income was $623 thousand, 79.0% higher than the prior quarter, contributing to year-to-date non-interest income of $971 thousand, more than double the prior year. The Bank reported a Community Bank Leverage Ratio of 9.14%, above the “well-capitalized” threshold, and book value per share of $13.35. Management highlighted ongoing work toward the previously announced merger with 1st Security Bank of Washington, noting this may be PWB’s final standalone earnings release.
Positive
- Net income Q2 2026 rose to $450k from $155k prior quarter
- Adjusted net income excluding merger costs estimated at $607k
- Total assets grew to $420.0m, up 16.2% year-over-year
- Deposits increased to $379.7m, up 19.1% year-over-year
- Year-to-date net interest income before provisions up 17.2%
- Year-to-date non-interest income up 105.7% to $971k
- Efficiency ratio improved to 82% from 92% prior quarter
- Community Bank Leverage Ratio at 9.14%, above well-capitalized level
- Borrowed funds reduced to $2.0m, down ~60% year-over-year
Negative
- Net interest margin declined to 2.98% from 3.17% prior quarter
- Loans receivable net fell 1.9% quarter-over-quarter to $261.4m
- Interest expense increased 8.9% quarter-over-quarter to $2.2m
- Leverage ratio decreased versus prior year from 10.15% to 9.14%
- Non-performing assets remained elevated around $7.9m
- Merger-related expenses of about $222k reduced reported earnings
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second Quarter and Year-over-Year Highlights:
- Total assets were
$420.0 million $403.4 million $16.6 million 4.1% for the quarter and an increase of$58.5 million 16.2% year-over-year. - Deposits totaled
$379.7 million $19.9 million 5.5% compared to$359.8 million $61.0 million 19.1% year-over-year. - Net interest income before provision for credit losses for the quarter was
$2.9 million $6.0 million $878 thousand 17.2% compared to the six months ended June 30, 2025. - Non-interest income for the quarter was
$623 thousand $275 thousand 79.0% compared to the prior quarter. - Net income for the second quarter was
$450 thousand $295 thousand 190.3% compared to the prior quarter. Year-to-date net income was$605 thousand $394 thousand 186.7% compared to the six months ending June 30, 2025.
"Our second quarter results demonstrate the momentum we built as an organization, reflecting the dedication of our team and the successful execution of our strategic priorities. We are proud to have grown total assets to
Total loans ended the quarter at
Deposits grew year-over-year by
PWB maintained a strong capital position during the quarter, ending the period with a Community Bank Leverage Ratio ("CBLR") of
Ed
Together, we have built more than a bank—we have built lasting relationships and a legacy of service to our communities. It has been a privilege to serve alongside all of you, and on behalf of the Board, thank you for making PWB's story one of which we can all be proud.
Now, by strategically joining forces with 1st Security Bank, we are not just expanding our reach within the Pacific Northwest we are exponentially increasing PWB's impact and unlocking richer opportunities for our employees, with the ability to deliver deeper resources to our communities and our clients."
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 | % Change | ||||||||||||||||||||||
6/30/2026 | 3/31/2026 | QoQ | 6/30/2025 | YoY | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Cash & Due from Banks | $ 94,310 | $ 77,399 | 21.8 % | $ 40,679 | 131.8 % | |||||||||||||||||||
Investments – Certificates of Deposit | - | - | NM | 498 | (100.0 %) | |||||||||||||||||||
Investments - Debt Securities AFS | 45,750 | 39,612 | 15.5 % | 41,015 | 11.5 % | |||||||||||||||||||
Investments – Debt Securities HTM | 5,156 | 5,997 | (14.0 %) | 7,247 | (28.9 %) | |||||||||||||||||||
Allowance for Credit Losses - HTM | (126) | (132) | (4.5 %) | (270) | (53.3 %) | |||||||||||||||||||
Investments - Debt Securities, Net | 50,780 | 45,477 | 11.7 % | 47,992 | 5.8 % | |||||||||||||||||||
Investments - Correspondent Stock | 323 | 458 | (29.5 %) | 922 | (65.0 %) | |||||||||||||||||||
Loans Receivable, Net Fees | 264,687 | 269,629 | (1.8 %) | 260,395 | 1.6 % | |||||||||||||||||||
Allowance for Credit Losses | (3,293) | (3,294) | (0.0 %) | (2,946) | 11.8 % | |||||||||||||||||||
Loans Receivable, Net | 261,394 | 266,335 | (1.9 %) | 257,449 | 1.5 % | |||||||||||||||||||
Premises and Equipment, Net | 4,446 | 4,629 | (4.0 %) | 4,955 | (10.3 %) | |||||||||||||||||||
Deferred Tax Asset, Net | 1,380 | 1,540 | (10.4 %) | 1,877 | (26.5 %) | |||||||||||||||||||
BOLI | 4,775 | 4,733 | 0.9 % | 4,607 | 3.6 % | |||||||||||||||||||
Other Assets | 2,615 | 2,788 | (6.2 %) | 2,571 | 1.7 % | |||||||||||||||||||
Total Assets | $ 420,023 | $ 403,359 | 4.1 % | $ 361,550 | 16.2 % | |||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Deposits | $ 379,719 | $ 359,842 | 5.5 % | $ 318,693 | 19.1 % | |||||||||||||||||||
Borrowed Funds | 2,036 | 5,039 | (59.6 %) | 5,048 | (59.7 %) | |||||||||||||||||||
Other Liabilities | 2,119 | 2,735 | (22.5 %) | 3,242 | (34.6 %) | |||||||||||||||||||
Total Liabilities | 383,874 | 367,616 | 4.4 % | 326,983 | 17.4 % | |||||||||||||||||||
STOCKHOLDERS' EQUITY | 36,149 | 35,743 | 1.1 % | 34,567 | 4.6 % | |||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ 420,023 | $ 403,359 | 4.1 % | $ 361,550 | 16.2 % | |||||||||||||||||||
Shares Outstanding at End-of-Period | 2,707,530 | 2,705,631 | 2,696,001 | |||||||||||||||||||||
Book Value Per Share | $ 13.35 | $ 13.21 | $ 12.82 | |||||||||||||||||||||
Allowance for Credit Losses to Total Loans | 1.27 % | 1.24 % | 1.20 % | |||||||||||||||||||||
Non-performing Assets (Non-accrual Loans) | $ 7,880 | $ 7,878 | $ 8,440 | |||||||||||||||||||||
Leverage Ratio | 9.14 % | 9.03 % | 10.15 % | |||||||||||||||||||||
Statements of Net Income (amounts in 000s, except per share data and ratios) | |||||||||||||||||||||||||
For the Quarter Ended | Year to Date | ||||||||||||||||||||||||
6/30/2026 | 3/31/2026 | % Change | 6/30/2026 | 6/30/2025 | % Change | ||||||||||||||||||||
INTEREST INCOME | |||||||||||||||||||||||||
Loan Interest Income | $ 3,888 | $ 3,931 | (1.1 %) | $ 7,819 | $ 7,388 | 5.8 % | |||||||||||||||||||
Investments & Due from Banks | 1,173 | 1,060 | 10.7 % | 2,233 | 1,527 | 46.2 % | |||||||||||||||||||
Loan Fee Income | 57 | 78 | (26.9 %) | 135 | 100 | 35.0 % | |||||||||||||||||||
Total Interest Income | 5,118 | 5,069 | 1.0 % | 10,187 | 9,015 | 13.0 % | |||||||||||||||||||
INTEREST EXPENSE | 2,195 | 2,016 | 8.9 % | 4,211 | 3,917 | 7.5 % | |||||||||||||||||||
NET INTEREST INCOME BEFORE | 2,923 | 3,053 | (4.3 %) | 5,976 | 5,098 | 17.2 % | |||||||||||||||||||
PROVISION FOR CREDIT LOSSES | (15) | 63 | NM | 48 | 120 | (60.0 %) | |||||||||||||||||||
NET INTEREST INCOME AFTER | 2,938 | 2,990 | (1.7 %) | 5,928 | 4,978 | 19.1 % | |||||||||||||||||||
NON-INTEREST INCOME | 623 | 348 | 79.0 % | 971 | 472 | 105.7 % | |||||||||||||||||||
NON-INTEREST EXPENSE | 2,923 | 3,118 | (6.3 %) | 6,041 | 5,115 | 18.1 % | |||||||||||||||||||
INCOME BEFORE PROVISION FOR | 638 | 220 | 190.0 % | 858 | 335 | 156.1 % | |||||||||||||||||||
PROVISION FOR INCOME TAXES | 188 | 65 | 189.2 % | 253 | 124 | 104.0 % | |||||||||||||||||||
NET INCOME | $ 450 | $ 155 | 190.3 % | $ 605 | $ 211 | 186.7 % | |||||||||||||||||||
Earnings Per Share - Basic | $ 0.16 | $ 0.06 | $ 0.22 | $ 0.08 | |||||||||||||||||||||
Earnings Per Share - Diluted | $ 0.16 | $ 0.06 | $ 0.22 | $ 0.08 | |||||||||||||||||||||
Return on Average Equity | 5.03 % | 1.75 % | 3.40 % | 1.25 % | |||||||||||||||||||||
Return on Average Assets | 0.44 % | 0.16 % | 0.30 % | 0.12 % | |||||||||||||||||||||
Net Interest Margin | 2.98 % | 3.17 % | 3.07 % | 3.10 % | |||||||||||||||||||||
Efficiency Ratio | 82 % | 92 % | 87 % | 92 % | |||||||||||||||||||||
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SOURCE Pacific West Bancorp