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

Rhea-AI Summary

Pacific West Bancorp (PWBK) reported strong Q2 2025 financial results, with net income reaching $130 thousand ($0.05 per diluted share), marking a 60.8% increase from Q1 2025 and a 143.8% surge year-over-year.

Key highlights include deposit growth of $28.0 million (9.6%) quarter-over-quarter to $318.6 million, and a significant 28.7% year-over-year increase. The bank reduced FHLB borrowings by $9.6 million and improved its net interest income by 26.6% year-over-year. Gross loans reached $260.4 million, with new loan originations of $9.9 million at a 6.84% weighted rate.

The bank maintains a strong capital position with a community bank leverage ratio of 10.15% and total shareholders' equity of $34.6 million.

Positive

• Deposits grew by $71.0 million or 28.7% year-over-year to $318.6 million
• Net income increased by 143.8% year-over-year to $130 thousand
• Net interest margin improved by 45 basis points year-over-year
• FHLB borrowings reduced by $31.8 million year-over-year
• Non-interest income grew 53.5% year-over-year

Negative

• Charged off a $705 thousand commercial real estate loan
• $7.6 million loan moved to non-accrual status
• Added $120 thousand to provision for credit loss
• Modest loan growth of only 1.6% quarter-over-quarter

News Market Reaction

-4.44%

1 alert

-4.44% News Effect

On the day this news was published, PWBK declined 4.44%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

PORTLAND, Ore., July 25, 2025 /PRNewswire/ -- Pacific West Bancorp (PWBK), the holding company of Pacific West Bank ("PWB"), today announced a second quarter net income of $130 thousand or $0.05 per diluted share.

Second Quarter and year-over-year Highlights:

• Deposits totaled $318.6 million and grew by $28.0 million or 9.6% when compared to the end of the first quarter, and by $71.0 million or 28.7% year-over-year.
• FHLB borrowings decreased by $9.6 million compared to the end of the first quarter, and by $31.8 million year-over-year.
• Net interest income before loan loss provision increased by $144 thousand or 5.8% compared to the first quarter 2025, and by $1.1 million or 26.6% compared to the end of second quarter of 2024.
• Non-interest income increased to $245 thousand during the second quarter, a $19 thousand or 8.5% growth since the first quarter of 2025, and a $164 thousand or 53.5% increase compared to the end of second quarter of 2024.
• Net income grew to $130 thousand during the second quarter, a $49 thousand or 60.8% increase compared to the first quarter 2025, and a $692 thousand or 143.8% increase compared to the second quarter of 2024.

Jason Wessling, President and CEO of PWB, commented, "We are pleased to see the momentum we have built continue during the quarter, as we grew deposits by $28.0 million for the quarter and by an impressive $71.0 million year-over-year. This strong deposit growth allowed us to execute further on our strategy of retiring expensive, non-core funding sources, which in turn improved the Bank's earnings. Our team of experienced bankers worked tirelessly to deliver consultative, relationship-based banking to the communities we serve. In return, our clients entrusted us with more of their deposit relationships, a testament to the confidence they placed in our team and in the Bank. Even amid continued economic challenges at both the local and national levels, we advanced our core operations, and our earnings continued to grow."

Deposits reached a new milestone of $318.6 million at the end of the second quarter. The Bank utilized these deposits to pay off overnight borrowings of $9.6 million or 65.4% of borrowings during the quarter. The remaining borrowings from FHLB have a weighted average life of 1.71 years. The Bank's net interest margin remained unchanged throughout the first and second quarters of 2025 at 3.11%. However, when compared to the second quarter of 2024, the Bank's net interest margin increased by 45 basis points. The Bank continues to improve its net interest margin by competitively lowering the cost of deposits while benefitting from higher rates on new loan production and the repricing of loans.

Loan interest income totaled $3.8 million, an increase of $144.8 thousand or 4.0% compared to the prior quarter. The increase was even greater when comparing the first 6 months of 2025, which totaled $7.4 million, to the same 6-month period of 2024, which totaled $6.9 million, an increase of $484.9 thousand or 7%. Interest expense when comparing the same two 6-month periods decreased by $238.8 thousand or (5.7%), despite the $71.0 million increase in deposits and $40.1 million increase in assets. Net interest income for the same two 6-month periods increased $1.1 million or 26.6%.

Gross loans ended the second quarter at $260.4 million, which was a modest increase of $4.1 million or 1.6% compared to the previous quarter. The loan pipeline continues to be strong and is expected to materialize in the last two quarters of the year. PWB originated $9.9 million in loans during the second quarter with an average weighted rate of 6.84%. During the quarter, the Bank charged off a commercial real estate loan of $705 thousand and moved a related loan of $7.6 million to non-accrual. Additionally, the Bank added $120 thousand to the provision for credit loss during the current quarter which resulted in an allowance for credit losses to total loans of 1.20% at quarter-end. Loan portfolio yield increased to 5.89% during the second quarter, which was an increase of 6 basis points when compared to the previous quarter and 28 basis points when compared to the same period in the prior year.

As of June 30, 2025, total shareholders' equity stood at $34.6 million, reflecting an increase of $331 thousand from the end of the prior quarter. This growth was primarily attributable to the accretion of earnings into capital and an increase in the market value of the Bank's investment portfolio. The Bank's capital position remains strong, exceeding regulatory minimum requirements with a community bank leverage ratio of 10.15%.

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							% Change
					6/30/2025				3/31/2025					QOQ			6/30/2024				YTD
‌
ASSETS
	Cash & due from banks				$          40,679				$         23,403					73.8 %			$           8,613				372.3 %
	Investments - CD				498				498					0.0 %			747				-33.3 %
‌
	Investments - Debt Securities HTM				7,247				7,747					-6.5 %			7,746				-6.4 %
	Allowance for HTM				(270)				(248)					8.9 %			(301)				-10.2 %
	Investments - Debt Securities AFS				41,016				42,852					-4.3 %			37,952				8.1 %
	Net Investments - Debt Securities				47,992				50,351					-4.7 %			45,397				5.7 %
	Investments - Correspondent Stock				922				1,352					-31.8 %			1,762				-47.7 %
‌
	Gross loans net of fees				260,395				256,272					1.6 %			254,122				2.5 %
	Allowance for Loans and Leases				(2,946)				(3,554)					-17.1 %			(3,415)				-13.7 %
		Net loans			257,449				252,718					1.9 %			250,707				2.7 %
‌
	Premises and equipment, net				4,955				5,135					-3.5 %			4,401				12.6 %
	Deferred tax asset, net				1,877				1,917					-2.1 %			2,003				-6.3 %
	BOLI				4,607				4,567					0.9 %			4,448				3.6 %
	Other assets				2,570				2,840					-9.5 %			3,074				-16.4 %
‌
		Total Assets			$        361,550				$       342,781					5.5 %			$      321,152				12.6 %
‌
LIABILITIES
	Deposits				$        318,693				$       290,678					9.6 %			$       247,662				28.7 %
	Borrowed funds				5,048				14,601					-65.4 %			36,841				-86.3 %
	Other liabilities				3,243				3,266					-0.7 %			2,904				11.7 %
		Total Liabilities			$        326,983				$       308,545					6.0 %			287,407				13.8 %
‌
STOCKHOLDERS' EQUITY					34,567				34,236					1.0 %			33,744				2.4 %
		Total Liabilities and Stockholders' Equity			$        361,550				$       342,781					5.5 %			$       321,152				12.6 %
‌
Shares outstanding at end-of-period					2,696,001				2,694,129								2,685,204
Book value per share					$            12.82				$           12.71								$           12.57
Allowance for credit losses to total loans and HTM					1.20 %				1.44 %								1.42 %
Non-performing assets (non-accrual loans and OREO)					$            8,440				$              880								$              840
Leverage Ratio					10.15 %				10.52 %								11.02 %

 

Statements of Net Income (amounts in 000s, except per share data and ratios)
‌
				For the Quarter Ended											Year to Date
				6/30/2025			3/31/2025				% Change				6/30/2025				6/30/2024				% Change
INTEREST INCOME
		Loans Interest Income		$      3,766			$      3,622				4.0 %				$       7,388				$         6,903				7.0 %
		Investments & due from banks		824			703				17.2 %				1,527				1,190				28.2 %
		Loan fee income		44			56				-22.4 %				100				89				12.2 %
			Total interest income	4,634			4,381				5.8 %				9,015				8,183				10.2 %
‌
INTEREST EXPENSE				2,013			1,904				5.7 %				3,917				4,155				-5.7 %
‌
NET INTEREST INCOME BEFORE LOAN LOSS PROVISION				2,621			2,477				5.8 %				5,098				4,028				26.6 %
‌
PROVISION FOR CREDIT LOSSES				120			-								120				65				84.6 %
‌
NET INTEREST INCOME AFTER LOAN LOSS PROVISION				2,501			2,477				1.0 %				4,978				3,963				25.6 %
‌
NON-INTEREST INCOME				245			226				8.5 %				472				307				53.5 %
NON-INTEREST EXPENSE				2,548			2,568				-0.8 %				5,115				4,899				4.4 %
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES				199			136				46.7 %				335				(629)				153.2 %
‌
PROVISION (BENEFIT) FOR INCOME TAXES				69			55				25.8 %				124				(148)				183.6 %
‌
NET INCOME (LOSS)				$         130			$           81				60.8 %				$          211				$           (481)				143.8 %
‌
Earnings per share - Basic				$        0.05			$        0.03								$        0.08				$          (0.18)
‌
Earnings per share - Diluted				$        0.05			$        0.03								$        0.08				$          (0.18)
‌
Return on average equity				1.52 %			0.96 %								1.25 %				-2.88 %
Return on average assets				0.15 %			0.10 %								0.12 %				-0.30 %
Net interest margin				3.11 %			3.10 %								3.10 %				2.66 %
Efficiency ratio				89 %			95 %								92 %				113 %

 

CONTACT: Jason Wessling, President and CEO (jwessling@bankpacificwest.com)

View original content to download multimedia:https://www.prnewswire.com/news-releases/pacific-west-bancorp-pwbk-announces-second-quarter-financial-results-302514183.html

SOURCE Pacific West Bancorp

FAQ

What was Pacific West Bancorp's (PWBK) net income for Q2 2025?

PWBK reported a net income of $130 thousand ($0.05 per diluted share), representing a 60.8% increase from Q1 2025 and a 143.8% increase year-over-year.

How much did PWBK's deposits grow in Q2 2025?

Deposits grew by $28.0 million (9.6%) quarter-over-quarter to $318.6 million, and increased by $71.0 million (28.7%) year-over-year.

What is PWBK's current loan portfolio yield and net interest margin?

The loan portfolio yield increased to 5.89% in Q2 2025, up 6 basis points from Q1. The net interest margin remained stable at 3.11% quarter-over-quarter but increased 45 basis points year-over-year.

What is Pacific West Bancorp's current capital position?

PWBK maintains a strong capital position with total shareholders' equity of $34.6 million and a community bank leverage ratio of 10.15%, exceeding regulatory minimum requirements.

How much did PWBK's loan portfolio grow in Q2 2025?

Gross loans reached $260.4 million, showing a modest increase of $4.1 million or 1.6% compared to Q1 2025. The bank originated $9.9 million in new loans with an average weighted rate of 6.84%.