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

Rhea-AI Summary

Pacific West Bancorp (PWBK) reported a Q3 net loss of ($12) thousand. Key highlights include: net deposit growth of $27.9 million (11.3% increase), with $52.2 million growth in core deposits offset by $24.3 million reduction in non-core deposits. Total assets reached $345 million, up 7.5% quarter-over-quarter. The bank saw loan growth of $2.3 million (1%), interest income increase of $478 thousand (11.6%), and net interest margin improvement of 13 basis points to 2.76%. Non-interest expense decreased by $174 thousand (6.9%) compared to Q1 2024.

Positive

• Net deposit growth of $27.9 million (11.3% increase)
• Interest income increased by $478 thousand (11.6%)
• Net interest margin improved by 13 basis points to 2.76%
• Non-interest expense reduced by $174 thousand (6.9%)
• Asset growth of $24.2 million (7.5%)
• Reduction in borrowings by $4 million (10.9%)

Negative

• Quarterly net loss of ($12) thousand
• Modest loan growth of only 1%

News Market Reaction

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On the day this news was published, PWBK gained 9.05%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

PORTLAND, Ore., Oct. 29, 2024 /PRNewswire/ -- Pacific West Bancorp (PWBK), the holding company of Pacific West Bank ("PWB"), today announced a third quarter net loss of ($12) thousand.

Third Quarter Highlights:

• Net deposits grew by $27.9 million, an 11.3% increase during the third quarter, consisting of a $52.2 million growth in Core Deposits offset by a $24.3 million retirement of non-core deposits.
• Loans grew by $2.3 million or 1% during the third quarter.
• Interest income increased by $478 thousand or 11.6%.
• Borrowings decreased by $4 million or 10.9%.
• Assets at the end of the third quarter were $345 million, an increase of $24.2 million or 7.5%, compared to the prior quarter-end.
• Net interest margin increased by 13 basis points.

"Our third-quarter results highlight our ongoing efforts and achievements, with increased core deposits, reductions in higher-cost non-core deposits, and the retirement of borrowings. These strategic moves strengthened our financial position by increasing our net interest margin and bringing PWB's income close to breakeven," said Jason Wessling, PWB's President and CEO. "Additionally, operational efficiencies have improved by reducing non-interest expense during the quarter by $174 thousand or 6.9%, when compared to the first quarter of 2024."

Total deposits at the end of the quarter were $275 million, an overall increase of 11.3% or $27.9 million. Expensive non-core deposits were reduced by $24.3 million, and borrowings were paid down. Additional strategic balance sheet repositioning and loan repricing resulted in increase in average asset yield by 13 basis points during the quarter from 5.41% to 5.54%. Net interest margin increased by 13 basis points to 2.76% compared to the previous quarter. "Our solid deposit growth this quarter is a testament to our team's dedication to exceptional service and the hard work that has propelled our brand forward in the market. Our continued momentum is a direct result of coordinated efforts from all areas of the Bank, demonstrating our commitment to building strong client relationships and delivering value at every touchpoint," said Lisa Fajardo-Faust, PWB's Chief Banking Officer.

At the end of the third quarter, total loans were $256 million, an increase of $2.3 million or 1%, when compared to the end of the second quarter. The quarter-end loan to deposit ratio improved to 93%, compared to prior quarter-end ratio of 103%.  The Bank originated $8 million in new loan commitments during third quarter with a weighted average rate of 7.96%. Loan quality remained consistent with no loans past due greater than 30 days and one loan on non-accrual status. Loan yield continues to increase as 15% of PWB's fixed-rate commercial real estate portfolio is set to mature or reprice over the next two quarters.     

"Our Bank is well-positioned to benefit from potential rate cuts while improving earnings momentum. The market's demand for consultative banking relationships aligns perfectly with our Bank's core values. These relationships are the cornerstone of our approach, enabling us to deliver tailored financial solutions that meet our business clients' evolving needs," said Ed Kawasaki, PWB's Chairman.

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
			09/30/2024		06/30/2024		QOQ		12/31/2023		YTD
ASSETS
	Cash & due from banks		$        23,599		$           8,613		174.0 %		$          10,693		120.7 %
	Investments - CD		498		747		-33.3 %		747		-33.3 %
	Investments - Debt Securities HTM		7,746		7,746		0.0 %		7,746		0.0 %
	Allowance for HTM		(284)		(301)		-5.7 %		(256)		10.8 %
	Investments - Debt Securities AFS		45,456		37,952		19.8 %		41,053		10.7 %
	Net Investments - Debt Securities		52,919		45,397		16.6 %		48,543		9.0 %
	Investments - Correspondent Stock		2,032		1,762		15.3 %		1,424		42.7 %
	Gross loans net of fees		256,402		254,122		0.9 %		248,402		3.2 %
	Allowance for Loans and Leases		(3,533)		(3,415)		3.5 %		(3,257)		8.5 %
		Net loans	252,869		250,707		0.9 %		245,146		3.2 %
	Premises and equipment, net		4,259		4,401		-3.2 %		4,629		-8.0 %
	Deferred tax asset, net		2,012		2,003		0.5 %		1,806		11.4 %
	BOLI		4,487		4,448		0.9 %		4,379		2.5 %
	Other assets		2,692		3,074		-12.4 %		2,616		2.9 %
		Total Assets	$       345,367		$      321,152		7.5 %		$      319,983		7.9 %
LIABILITIES
	Deposits		$       275,561		$       247,662		11.3 %		$       237,470		16.0 %
	Borrowed funds		32,838		36,841		-10.9 %		44,782		-26.7 %
	Other liabilities		2,743		2,904		-5.5 %		3,681		-25.5 %
		Total Liabilities	$        311,142		287,407		8.3 %		285,933		8.8 %
STOCKHOLDERS' EQUITY			34,225		33,744		1.4 %		34,051		0.51 %
		Total Liabilities and Stockholders' Equity	$       345,367		$      321,152		7.5 %		$      319,983		7.9 %
Shares outstanding at end-of-period			2,685,943		2,685,204				2,676,564
Book value per share			$           12.74		$          12.57				$          12.72
Allowance for credit losses to total loans and HTM			1.45 %		1.42 %				1.37 %
Non-performing assets (non-accrual loans and OREO)			$              840		$              840				$                 -
Leverage Ratio			10.16 %		11.02 %				11.45 %

 

Statements of Net Income (amounts in 000s, except per share data and ratios)
			For the Quarter Ended						Year to Date
			09/30/2024		6/30/2024		% Change		09/30/2024		09/30/2023		% Change
INTEREST INCOME
	Loans Interest Income		$       3,616		$       3,454		4.7 %		$    10,519		$           8,236		27.7 %
	Investments & due from banks		881		601		46.5 %		2,072		2,006		3.3 %
	Loan fee income		87		50		72.5 %		176		229		-23.1 %
		Total interest income	4,584		4,106		11.6 %		12,767		10,471		21.9 %
INTEREST EXPENSE			2,303		2,114		9.0 %		6,459		3,368		91.8 %
NET INTEREST INCOME BEFORE LOAN LOSS PROVISION			2,280		1,992		14.5 %		6,308		7,103		-11.2 %
PROVISION FOR CREDIT LOSSES			101		65		55.4 %		166		465		-64.3 %
NET INTEREST INCOME AFTER LOAN LOSS PROVISION			2,179		1,927		13.1 %		6,142		6,638		-7.5 %
NON-INTEREST INCOME			167		155		7.5 %		474		458		3.5 %
NON-INTEREST EXPENSE			2,343		2,382		-1.7 %		7,242		7,203		0.5 %
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES			3		(300)		101.2 %		(626)		(107)		482.9 %
PROVISION (BENEFIT) FOR INCOME TAXES			15		(70)		121.4 %		(133)		(16)		739.0 %
NET INCOME (LOSS)			$         (12)		$      (230)		95.0 %		$        (493)		$             (91)		438.3 %
Earnings per share - Basic			$    (0.004)		$       (0.09)				$       (0.18)		$         (0.03 )
Earnings per share - Diluted			$    (0.004)		$       (0.09)				$       (0.18)		$         (0.03)
Return on average equity			-0.14 %		-2.77 %				-1.96 %		-0.36 %
Return on average assets			-0.01 %		-0.29 %				-0.20 %		-0.04 %
Net interest margin			2.76 %		2.63 %				2.69 %		3.42 %
Efficiency ratio			96 %		111 %				107 %		95 %

 

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

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SOURCE Pacific West Bancorp

FAQ

What was Pacific West Bancorp's (PWBK) net income for Q3 2024?

Pacific West Bancorp reported a net loss of ($12) thousand for the third quarter of 2024.

How much did PWBK's deposits grow in Q3 2024?

PWBK's net deposits grew by $27.9 million, representing an 11.3% increase during the third quarter of 2024.

What was PWBK's net interest margin in Q3 2024?

PWBK's net interest margin increased by 13 basis points to 2.76% compared to the previous quarter.

What was PWBK's total asset value at the end of Q3 2024?

PWBK's total assets at the end of the third quarter 2024 were $345 million, an increase of $24.2 million or 7.5% compared to the prior quarter.