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

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Pacific West Bancorp (PWBK) reported third-quarter net income of $310,000 or $0.11 per diluted share for the quarter ended Oct 28, 2025. Loans totaled $272.1M, up $11.7M (4.5%) sequentially and $15.7M (6.1%) year‑over‑year. Deposits were $316.7M, up $41.1M (14.9%) YoY despite a strategic $7.5M reduction in high‑cost municipal deposits.

Net interest margin improved to 3.17% for Q3 (3.11% prior quarter) and 3.13% YTD vs 2.69% a year earlier. Provision for credit losses was $171k in Q3. Stockholders' equity totaled $35.3M and the community bank leverage ratio was 9.96%.

Positive

• Loans +6.1% year-over-year to $272.1M
• Deposits +14.9% year-over-year to $316.7M
• Net interest margin improved to 3.17% in Q3
• Net income Q3 rose sequentially by 139.1% to $310k
• Interest expense down $518k (8.0%) year-to-date

Negative

• Provision for credit losses rose to $171k in Q3 from $120k
• Quarter-end deposits declined modestly after a $7.5M reduction in high-cost municipal deposits

News Market Reaction

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+0.69% News Effect

On the day this news was published, PWBK gained 0.69%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

PORTLAND, Ore., Oct. 28, 2025 /PRNewswire/ -- Pacific West Bancorp ("PWBK"), the holding company of Pacific West Bank ("PWB" or "Bank"), today announced third quarter net income of $310 thousand or $0.11 per diluted share.

Third Quarter and year-over-year Highlights:

• Loans totaled $272.1 million and grew by $11.7 million or 4.5%, when compared to the end of the second quarter of 2025, and by $15.7 million or 6.1%, year over year.
• Deposits totaled $316.7 million at quarter end and grew by $41.1 million or 14.9%, compared to the same quarter end in 2024, despite intentional trimming of higher-cost deposits.
• Net interest income for the quarter before provision for credit losses increased by $175 thousand or 6.7%, compared to the second quarter of 2025, and by $1.6 million or 25.1%, year to date compared to the same period in 2024.
• Net income for the third quarter was $310 thousand, a $180 thousand or a 139.1% increase compared to the second quarter of 2025 and was $1.0 million higher, a 205.5% increase year to date compared to the same period in 2024.
• Net interest margin improved during the quarter to 3.17% from 3.11% for the second quarter and the year to date net interest margin of 3.13% represented a 16.4% increase compared to the net interest margin of 2.69% for the same period in 2024.

"This quarter's results reflect accelerating earnings driven by loan growth, stronger loan pricing and a lower cost deposit mix, which supported an expansion in our net interest margin," said Jason Wessling, President and Chief Executive Officer. "While we continue to operate in a dynamic environment, our disciplined approach to balance sheet management positions us well for improving and sustainable long-term earnings. We are also pleased to welcome Aran Loftus, CPA as our new Chief Financial Officer. Aran joins the Bank with a strong background in public accounting and extensive experience in the financial institutions sector, and we look forward to his contributions to our leadership team. Additionally, we are proud that PWB has been recognized by the Portland Business Journal for the second consecutive year as one of the "Best Places to Work" — a reflection of our positive culture, commitment to our employees, and focus on delivering exceptional service to our clients and communities."

Total loans reached $272.1 million at the end of the third quarter with the majority of this growth occurring mid-quarter. As a result, the full benefit to interest income will be realized in future periods. The Bank's loan pipeline and growth momentum is strong heading into the fourth quarter. The growth in loans contributed to a higher provision for credit losses in the third quarter which totaled $171 thousand compared to $120 thousand for the second quarter.

Total deposits at quarter end totaled $316.7 million, reflecting a modest decline quarter over quarter driven by a strategic reduction of $7.5 million in high-cost municipal deposits. Despite this intentional repositioning, year-over-year deposit growth remains strong at $41.1 million, or 14.9%. Ongoing efforts to improve the deposit mix have led to a reduction in interest expense of $518 thousand for an 8.0% decrease over the first nine months of 2025 compared to the same period in 2024, while the Bank experienced strong year-over-year deposit growth from new and existing clients. As a result, net interest margin continued to expand improving to 3.17% for the quarter, up from 3.11% in the prior quarter and up to 3.13% year to date compared to 2.69% for the same period in 2024.

Interest income for the quarter was $4.8 million, up $187 thousand or 4.0% from the prior quarter. For the first nine months of 2025, interest income totaled $13.8 million, an increase of $1.1 million, or 8.4% compared to the same period in 2024.

The Bank's investment portfolio decreased due to principal paydowns, maturities, and a sale, offsetting market value appreciation. During the quarter, PWB sold an investment, realizing a gain of $182 thousand. The Bank continues to monitor the investment portfolio for opportunities to capture unrealized gains and reinvest proceeds into higher yielding loans and securities.

As of the end of the third quarter, stockholders' equity totaled $35.3 million, reflecting an increase of $773 thousand from the prior quarter end. This growth was primarily driven by the retention of earnings and appreciation in 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 9.96%.

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
					9/30/2025				6/30/2025					QOQ			9/30/2024				YTD
ASSETS
	Cash & due from banks				$         30,228				$         40,679					(25.7) %			$         23,599				28.1 %
	Investments - CD				-				498					(100.0) %			498				(100.0 %)
	Investments - Debt Securities HTM				6,747				7,247					(6.9 %)			7,747				(12.9 %)
	Allowance for HTM				(168)				(270)					(37.8 %)			(284)				(40.8 %)
	Investments - Debt Securities AFS				40,544				41,016					(1.2 %)			45,456				(10.8 %)
	Net Investments - Debt Securities				47,123				47,993					(1.8 %)			52,919				(11.0 %)
	Investments - Correspondent Stock				426				922					(53.8 %)			2,032				(79.0 %)
	Gross loans net of fees				272,140				260,395					4.5 %			256,402				6.1 %
	Allowance for Loans and Leases				(3,207)				(2,946)					8.9 %			(3,533)				(9.2 %)
		Net loans			268,933				257,449					4.5 %			252,869				6.4 %
	Premises and equipment, net				4,788				4,955					(3.4 %)			4,259				12.4 %
	Deferred tax asset, net				1,762				1,877					(6.1 %)			2,012				(12.4 %)
	BOLI				4,652				4,607					1.0 %			4,487				3.7 %
	Other assets				2,454				2,570					(4.5 %)			2,692				(8.8 %)
		Total Assets			$        360,366				$       361,550					(0.3) %			$      345,367				4.3 %
LIABILITIES
	Deposits				$        316,675				$       318,693					(0.6 %)			$       275,561				14.9 %
	Borrowed funds				5,045				5,048					(0.1 %)			32,838				(84.6 %)
	Other liabilities				3,306				3,242					2.0 %			2,743				20.5 %
		Total Liabilities			325,026				326,983					(0.6) %			311,142				4.5 %
STOCKHOLDERS' EQUITY					$          35,340				$         34,567					2.2 %			$         34,225				3.3 %
		Total Liabilities and Stockholders' Equity			$        360,366				$       361,550					(0.3) %			$       345,367				4.3 %
Shares outstanding at end-of-period					2,697,153				2,696,001								2,685,943
Book value per share					$            13.10				$           12.82								$           12.74
Allowance for credit losses to total loans and HTM					1.21 %				1.20 %								1.45 %
Non-performing assets (non-accrual loans and OREO)					$            8,332				$           8,440								$              840
Leverage Ratio					9.96 %				10.15 %								10.16 %

 

Statements of Net Income (amounts in 000s, except per share data and ratios)
				For the Quarter Ended											Year to Date
				9/30/2025			6/30/2025				% Change				9/30/2025				9/30/2024				% Change
INTEREST INCOME
		Loans Interest Income		$       3,865			$       3,766				2.6 %				$     11,253				$         10,519				7.0 %
		Investments & due from banks		862			824				4.6 %				2,388				2,072				15.3 %
		Loan fee income		94			44				113.6 %				194				176				10.2 %
			Total interest income	4,821			4,634				4.0 %				13,835				12,767				8.4 %
INTEREST EXPENSE				2,025			2,013				0.6 %				5,941				6,459				(8.0 %)
NET INTEREST INCOME BEFORE LOAN   LOSS PROVISION				2,796			2,621				6.7 %				7,894				6,308				25.1 %
PROVISION FOR CREDIT LOSSES				171			120				42.5 %				291				166				75.3 %
NET INTEREST INCOME AFTER LOAN LOSS PROVISION				2,625			2,501				5.0 %				7,603				6,142				23.8 %
NON-INTEREST INCOME				244			245				(0.6 %)				716				474				51.1 %
NON-INTEREST EXPENSE				2,609			2,548				2.4 %				7,543				7,242				4.2 %
GAIN ON SALE OF SECURITY				182			-				NM				-				-				NM
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES				442			199				122.4 %				776				(626)				224.0 %
PROVISION (BENEFIT) FOR INCOME TAXES				132			269				91.0 %				256				(133)				292.5 %
NET INCOME (LOSS)				$         310			$         130				139.1 %				$          520				$           (493)				205.5 %
Earnings per share - Basic				$        0.11			$        0.05								$         0.19				$          (0.18)
Earnings per share - Diluted				$        0.11			$        0.05								$         0.19				$          (0.18)
Return on average equity				3.53 %			1.52 %								2.03 %				(1.96) %
Return on average assets				0.34 %			0.15 %								0.20 %				(0.20) %
Net interest margin				3.17 %			3.11 %								3.13 %				2.69 %
Efficiency ratio				80 %			89 %								88 %				107 %

 

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) third-quarter 2025 earnings per share and net income?

PWBK reported net income of $310,000, or $0.11 per diluted share, for Q3 2025.

How much did PWBK loans grow in Q3 2025 and year over year?

Total loans were $272.1M, up $11.7M (4.5%) sequentially and $15.7M (6.1%) year‑over‑year.

What was Pacific West Bancorp's net interest margin in Q3 2025 and year to date?

Net interest margin was 3.17% for Q3 2025 and 3.13% YTD, up from 2.69% a year earlier.

How did deposits change for PWBK in Q3 2025?

Deposits totaled $316.7M at quarter end, a $41.1M (14.9%) increase YoY, with a modest QoQ decline after a $7.5M strategic reduction in municipal deposits.

Did Pacific West Bancorp report changes in provisioning or credit costs in Q3 2025?

Yes. Provision for credit losses increased to $171k in Q3 2025 from $120k in Q2 2025.

What is PWBK's capital position after Q3 2025 results?

Stockholders' equity was $35.3M and the community bank leverage ratio was 9.96%, above regulatory minimums.