West Coast Community Bancorp Announces Earnings and Dividend for the First Quarter of 2026
Rhea-AI Summary
West Coast Community Bancorp (OTCQX: WCCB) reported Q1 2026 net income of $15.0M and basic EPS $1.45, up versus both Q4 2025 and Q1 2025. The Board raised the quarterly cash dividend to $0.24 per share, payable May 11, 2026. Loans were $2.22B and total assets were $2.90B at March 31, 2026, with tangible book value per share at $30.98.
Management cited loan growth, solid capital ratios, improved returns and a $912K gain on sale of acquired non-core residential loans as drivers of results.
Positive
- Net income +28% YoY to $15.0M
- Basic EPS +31% YoY to $1.45
- Tangible book value +18% YoY to $30.98 per share
- Dividend increase to $0.24 per share, payable May 11, 2026
- ROAE 15.76% for Q1 2026 (improved vs prior year)
Negative
- Post-tax unrealized AFS losses +$1.6M reduced comprehensive income
- $10.0M land loan transferred to OREO, indicating a nonperforming asset movement
- $8.9M of non-core residential loans sold, reducing loan portfolio carrying balances
News Market Reaction – WCCB
In the Apr 21 session, WCCB gained 0.55%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Basic and diluted earnings per share ("EPS") for the quarter ended March 31, 2026, were
On April 15, 2026, the Bancorp Board of Directors declared a
"Our first quarter results reflect continued earnings momentum, attractive returns and ongoing balance sheet strength. Core loan growth remained solid, capital and liquidity levels were strong, and our team executed effectively in a competitive environment," said Krista Snelling, Chairman and Chief Executive Officer of West Coast Community Bancorp.
"Given our strong earnings momentum, capital position and continued growth in tangible book value, the Board's decision to increase the dividend reflects confidence in the durability of our performance and our ability to deliver consistent value to shareholders," added Snelling.
Financial Highlights
Performance highlights as of and for the quarter and year ended March 31, 2026, include the following:
- Net income for the quarter ended March 31, 2026, increased
$1.2 million 8.8% , from the fourth quarter of 2025, primarily attributed to a$359 thousand $1.5 million $912 thousand $8.9 million $368 thousand San Francisco stock. Credit losses of$258 thousand $362 thousand $247 thousand - Total loans were
$2.22 billion $2.17 billion $2.11 billion $46.8 million 2.2% from December 31, 2025, and an increase of$114.0 million 5.4% , from March 31, 2025. Loan growth during the first quarter of 2026 was most notable in commercial revolving lines of credit, especially agriculture-related businesses sourced from our new San Luis Obispo team. The organic loan growth during the first quarter of 2026 was partially offset by the sale of$8.9 million $10.0 million - Total assets were
$2.90 billion $2.88 billion $2.66 billion $11.4 million 0.4% , from December 31, 2025, and$236.8 million 8.9% , from March 31, 2025. The quarter-over-quarter increase in total assets is largely attributed to a$46.8 million $29.2 million $13.4 million $114.0 million $116.5 million - Total deposits were
$2.47 billion $2.48 billion $2.26 billion $2.8 million 0.1% , from December 31, 2025, and an increase of$218.0 million 9.7% , from March 31, 2025. The slight decrease from December 31, 2025, is attributed to the seasonal outflows associated with agriculture and non-profit depositors. The increase from March 31, 2025, was driven by new banking relationships established over the last year. - Primary liquidity ratio, defined as cash and cash equivalents, deposits held in other banks and unpledged AFS securities as a percentage of total assets, was
14.4% ,15.9% and11.8% at March 31, 2026, December 31, 2025 and March 31, 2025, respectively. - Taxable equivalent net interest margin was
5.11% ,4.99% and5.29% for the quarters ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively. The quarter-over-quarter increase in the net interest margin is largely attributed to the absence of$864 thousand $4.3 million 4.84% ,4.80% and4.86% , respectively. - The cost of funds was
1.28% ,1.46% and1.32% for the quarters ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively. The quarter-over-quarter decrease in the cost of funds is largely attributed to the absence of$864 thousand 1.25% ,1.29% and1.28% , respectively. - Return on average equity ("ROAE") was
15.76% ,14.55% and13.83% for the quarters ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively. Return on average assets ("ROAA") was2.12% ,1.88% and1.78% for the quarters ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively. Return on average tangible equity ("ROATE"), a non-GAAP measure, was19.75% ,18.46% and18.34% for the quarters ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively. - The efficiency ratio, a non-GAAP measure, was
43.59% ,44.12% and46.48% for the quarters ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively. - All capital ratios were above regulatory requirements for a well-capitalized institution with a total risk-based capital ratio of
14.65% ,14.39% and14.23% at March 31, 2026, December 31, 2025, and March 31, 2025, respectively. The tangible common equity to tangible asset ratio was11.49% ,11.10% and10.75% at March 31, 2026, December 31, 2025 and March 31, 2025, respectively. - Tangible book value per share, a non-GAAP measure, was
$30.98 $29.85 $26.32 $15.0 million $1.6 million $2.4 million
Interest Income, Interest Expense and Net Interest Margin
Net interest income was
The decrease in net interest income in the first quarter of 2026 was attributed to a
The year-over-year increase in net interest income is attributed to a
The following table compares interest income, average interest-earning assets, interest expense, average interest-bearing liabilities, net interest income, net interest margin and cost of funds for each period presented:
For the Quarters Ended | |||||||||||||||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||||||||
(Dollars in thousands) | Average Balance (3) | Interest Income (1) (2)/ Expense | Avg Yield/ Cost | Average Balance (3) | Interest Income (1) (2)/ Expense | Avg Yield/ Cost | Average Balance (3) | Interest Income (1) (2)/ Expense | Avg Yield/ Cost | ||||||||
ASSETS | |||||||||||||||||
Interest-earning cash and due from banks | $ 151,349 | $ 1,367 | 3.66 % | $ 164,017 | $ 1,630 | 3.94 % | $ 26,732 | $ 290 | 4.40 % | ||||||||
Investment securities | 388,467 | 3,471 | 3.62 % | 429,125 | 3,909 | 3.61 % | 394,328 | 3,305 | 3.40 % | ||||||||
Loans | 2,176,972 | 37,126 | 6.92 % | 2,154,451 | 38,240 | 7.04 % | 2,070,473 | 36,362 | 7.12 % | ||||||||
Total interest-earning assets | 2,716,788 | 41,964 | 6.26 % | 2,747,593 | 43,779 | 6.32 % | 2,491,533 | 39,957 | 6.50 % | ||||||||
Noninterest-earning assets | 155,471 | 158,417 | 163,239 | ||||||||||||||
Total assets | |||||||||||||||||
LIABILITIES | |||||||||||||||||
Interest-bearing demand deposits | $ 250,878 | 573 | 0.93 % | $ 247,632 | 604 | 0.97 % | $ 264,206 | 642 | 0.99 % | ||||||||
Money market deposits | 924,729 | 5,744 | 2.52 % | 882,550 | 6,041 | 2.72 % | 709,186 | 4,864 | 2.78 % | ||||||||
Savings deposits | 168,082 | 346 | 0.83 % | 178,595 | 423 | 0.94 % | 176,889 | 341 | 0.78 % | ||||||||
Time certificates of deposits | 146,069 | 927 | 2.57 % | 149,677 | 1,057 | 2.80 % | 165,997 | 1,339 | 3.27 % | ||||||||
Short-term borrowings | — | — | — % | — | — | — % | 3,861 | 43 | 4.52 % | ||||||||
Subordinated debt | 7,817 | 164 | 8.51 % | 10,417 | 1,077 | 41.02 % | 11,638 | 238 | 8.29 % | ||||||||
Total interest-bearing liabilities | 1,497,575 | 7,754 | 2.10 % | 1,468,871 | 9,202 | 2.49 % | 1,331,777 | 7,467 | 2.27 % | ||||||||
Noninterest-bearing deposits | 966,367 | 1,039,184 | 956,204 | ||||||||||||||
Noninterest-bearing liabilities | 22,705 | 22,386 | 24,242 | ||||||||||||||
Total liabilities | 2,486,647 | 2,530,441 | 2,312,223 | ||||||||||||||
EQUITY | 385,612 | 375,569 | 342,549 | ||||||||||||||
Total liabilities and equity | |||||||||||||||||
Taxable equivalent net interest income and margin (1) | 5.11 % | 4.99 % | 5.29 % | ||||||||||||||
GAAP net interest income | |||||||||||||||||
Cost of funds | 1.28 % | 1.46 % | 1.32 % | ||||||||||||||
(1) Interest income on investment securities, interest income on loans, net interest income and net interest margin are presented here on a taxable equivalent basis, using the statutory federal income tax rate of (2) GAAP interest income on investment securities totaled (3) Average balances on loans outstanding include nonaccrual loans, unamortized net deferred loan fees/costs and unaccreted purchase discount on acquired loans. The amortization of net loan origination fees and accretion of purchase discount on acquired loans are included in interest income on loans. | |||||||||||||||||
Noninterest Income and Expense
Noninterest income for the quarter ended March 31, 2026, was
The year-over-year increase in noninterest income is primarily attributable to the
Noninterest expense for the quarter ended March 31, 2026, was
These increases were partially offset by lower quarter-over-quarter marketing and advertising expenses as well as lower data processing costs associated with one-time credits received from our core system processor and the absence of
The year-over-year increase in noninterest expenses is largely attributed to higher professional fees incurred in the first quarter of 2026 associated with our preparation of becoming an SEC registrant. The year-over-year increase in professional fees was partially offset by a
Liquidity Position
The following table summarizes the Bank's liquidity for each period reported:
As of | |||||
March 31, | December 31, | March 31, | |||
(Dollars in thousands) | 2026 | 2025 | 2025 | ||
Cash and cash equivalents | $ 161,514 | $ 190,678 | $ 45,000 | ||
Interest-earning deposits in other financial institutions | 100 | 104 | 350 | ||
Unencumbered AFS securities | 255,170 | 267,150 | 268,525 | ||
Total on-balance-sheet liquidity | 416,784 | 457,932 | 313,875 | ||
Line of credit from the Federal Home Loan Bank of | 720,925 | 709,451 | 639,607 | ||
Line of credit from the Federal Reserve Bank of | 409,679 | 356,450 | 357,453 | ||
Lines at correspondent banks – unsecured | 100,000 | 100,000 | 100,000 | ||
Total external contingency liquidity capacity | 1,230,604 | 1,165,901 | 1,097,060 | ||
Less: short-term borrowings | — | — | (20,000) | ||
Net available liquidity sources | $ 1,647,388 | $ 1,623,833 | $ 1,390,935 | ||
As of March 31, 2026, net liquidity exceeded uninsured and uncollateralized deposits of
Investment Portfolio
Securities issued by
The investment portfolio totaled
Net unrealized losses on AFS securities grew to
Loans and Asset Quality
Gross loans, net of unaccreted purchase discount and deferred fees and costs, increased
Nonaccrual loans of
The allowance for credit losses on loans ("ACL") was
While there was provision for credit losses on loans related to organic loan growth during the first quarter of 2026, it was more than offset by a reversal of provision for credit losses of approximately
The allowance on unfunded credit commitments, recorded in other liabilities, was
The following table summarizes the Bank's loan mix:
As of | Change % vs. | ||||||||
March 31, | December 31, | March 31, | December 31, | March 31, | |||||
(Dollars in thousands) | 2026 | 2025 | 2025 | 2025 | 2025 | ||||
SBA and B&I loans | $ 175,949 | $ 179,659 | $ 183,743 | (2) % | (4) % | ||||
Commercial term loans | 124,597 | 123,267 | 130,559 | 1 % | (5) % | ||||
Revolving commercial lines | 211,261 | 185,604 | 174,810 | 14 % | 21 % | ||||
Asset-based lines of credit | 49,829 | 57,238 | 29,990 | (13) % | 66 % | ||||
Construction loans | 259,577 | 253,978 | 211,085 | 2 % | 23 % | ||||
Commercial real estate loans | 1,374,203 | 1,352,215 | 1,364,071 | 2 % | 1 % | ||||
Home equity lines of credit | 35,428 | 36,005 | 34,950 | (2) % | 1 % | ||||
Consumer and other loans | 3,879 | 3,435 | 1,779 | 13 % | 118 % | ||||
Deferred loan expenses, net of fees | 2,080 | 1,904 | 2,240 | 9 % | (7) % | ||||
Total loans, net of deferred fees and costs | 2,236,803 | 2,193,305 | 2,133,227 | 2 % | 5 % | ||||
Purchase discount on acquired loans | (17,528) | (20,841) | (27,980) | (16) % | (37) % | ||||
Total loans, net of unaccreted purchase discount | $ 2,219,275 | $ 2,172,464 | $ 2,105,247 | 2 % | 5 % | ||||
The following table summarizes delinquent and nonperforming loans, net of deferred fees and costs, and purchase discounts:
As of or for the Three Months Ended | |||||
March 31, | December 31, | March 31, | |||
(Dollars in thousands) | 2026 | 2025 | 2025 | ||
Loans past due 30-89 days | $ 836 | $ 8,778 | $ 7,192 | ||
Loans past due 30-89 days, net of government guaranteed amounts | $ 836 | $ 3,717 | $ — | ||
Delinquent loans (past due 90+ days still accruing) | $ — | $ — | $ — | ||
Nonaccrual loans | 10,936 | 14,101 | 2,259 | ||
Other real estate owned | 6,874 | 267 | — | ||
Nonperforming assets | $ 17,810 | $ 14,368 | $ 2,259 | ||
Nonperforming assets, net of government guaranteed amounts | $ 10,670 | $ 11,962 | $ — | ||
Net loan charge-offs (recoveries) QTD | $ 3,368 | $ (346) | $ 5 | ||
Deposits
Deposits totaled
The following table summarizes the Bank's deposit mix:
As of | Change % vs. | ||||||||
March 31, | December 31, | March 31, | December 31, | March 31, | |||||
(Dollars in thousands) | 2026 | 2025 | 2025 | 2025 | 2025 | ||||
Noninterest-bearing demand | $ 985,415 | $ 1,012,201 | $ 954,663 | (3) % | 3 % | ||||
Interest-bearing demand | 235,391 | 250,248 | 250,585 | (6) % | (6) % | ||||
Money markets | 948,781 | 897,471 | 718,465 | 6 % | 32 % | ||||
Savings | 160,659 | 168,312 | 171,670 | (5) % | (6) % | ||||
Time certificates of deposit | 144,040 | 148,820 | 160,866 | (3) % | (10) % | ||||
Total deposits | $ 2,474,286 | $ 2,477,052 | $ 2,256,249 | — % | 10 % | ||||
Deposits – personal | $ 798,094 | $ 813,138 | $ 776,856 | (2) % | 3 % | ||||
Deposits – business | 1,676,192 | 1,663,914 | 1,479,393 | 1 % | 13 % | ||||
Total deposits | $ 2,474,286 | $ 2,477,052 | $ 2,256,249 | — % | 10 % | ||||
Shareholders' Equity
Total shareholders' equity was
Share Repurchase Program
On May 6, 2025, Bancorp announced the launch of a new Share Repurchase Program approved by its Board of Directors to repurchase up to
Non-GAAP Financial Measures
In addition to evaluating Bancorp's results of operations in accordance with generally accepted accounting principles ("GAAP") in
Examples of non-GAAP financial measures may include taxable equivalent net interest income, efficiency ratio, tangible common equity to tangible asset ratio and return on average tangible common equity:
- Taxable equivalent net interest income is derived by adding the tax-equivalent benefit from tax-exempt interest-earning loans and tax-exempt investment securities to total interest income and then subtracting total interest expense. The tax-equivalent benefit is derived using the federal statutory income tax rate of
21% . Taxable equivalent net interest margin is derived by dividing taxable equivalent net interest income by total interest-earning assets for the relevant period. Management considers the use of these measures to be beneficial as they allow for comparability of yields on taxable and tax-exempt assets. We believe disclosure of these measures is also consistent with standard practice within the banking industry. - Efficiency ratio is a common comparable metric used by banks to understand the expense structure relative to total revenue. To improve the comparability of the ratio to our peers and internally across periods, certain non-recurring items may be excluded from time to time and would be noted separately.
- Tangible common equity and tangible book value per common share measures exclude the impact of intangible assets, net of deferred taxes and their related amortization. These financial measures are useful for evaluating the performance of a business consistently.
- Return on average tangible common equity is used by management and readers of our financial statements to understand how efficiently Bancorp is deploying its common equity. Companies that can demonstrate more efficient use of common equity are more likely to be viewed favorably by current and prospective investors. Return on average tangible equity is derived by adding to net income amortization of core deposit intangibles (less the related tax effect) and then dividing the resulting amount by average tangible equity for the period. Average tangible equity is determined by subtracting from average total shareholders' equity the average balance of intangible assets during the period, which were core deposit intangible assets and goodwill. We believe that disclosure of return on average tangible equity is beneficial as it provides an understanding of the operating results of our core business.
A reconciliation of GAAP to non-GAAP financial measures and other performance ratios used by Bancorp, as adjusted, is presented in the table at the end of this earnings release.
ABOUT WEST COAST COMMUNITY BANK AND WEST COAST COMMUNITY BANCORP
Founded in 2004, West Coast Community Bank is the wholly owned subsidiary of West Coast Community Bancorp, a bank holding company. The Bank is a top-rated, locally operated and full-service community bank headquartered in
NATIONAL, STATE AND LOCAL RATINGS AND AWARDS
- Newsweek Magazine: Named one of America's Best Regional Banks and Credit Unions 2026 and 2025.
- S&P Global Market Intelligence:
- Ranked #8 among top
U.S. community banks under$3B - Ranked #2 among community banks in the West under
$10B - Ranked #1 among
California community banks under$10B
- Ranked #8 among top
- TIME Magazine America's Growth Leaders for 2026: Ranked #330 of 501 in inaugural list of top performing publicly listed companies in the
U.S. - BauerFinancial: Rated 5-star "Superior" for every quarter of 2025.
- Bank Director Magazine 2025 RankingBanking Report: Ranked #4 among Top 25 U.S. publicly traded banks and #2 for banks with assets less than
$5B - American Banker Magazine: Ranked #59 among top
U.S. community banks with$2 -$10B - Silicon Valley Business Journal
- Ranked #14 for fastest-growing deposits as of December 31, 2025.
- Ranked #11 among Top 20 largest Silicon Valley banks by deposits as of June 30, 2025.
- Ranked #11 among fastest-growing real estate lenders as of March 31, 2025.
- Ranked #17 among largest corporate philanthropists in Silicon Valley for 2024 giving.
Santa Cruz Area Chamber of Commerce: Business of the Year 2025, 2022 and 2018.- Santa Cruz Sentinel 2025 Readers' Choice Award: Voted number one bank in
Santa Cruz County for 11 years. - Good Times 2025 Best of Santa Cruz County Readers' Poll: Voted Best Local Bank for the fourteenth consecutive year.
- The Pajaronian 2025 Best of the Pajaro Valley Readers' Poll: Silver Award for Best Bank.
- The Press Banner 2025 The Best of Scotts Valley Readers' Poll: Silver Award for Best Local Bank.
Forward-Looking Statements
This release may contain statements that we believe are, or may be considered to be, "forward-looking statements." Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based on our current beliefs, expectations, or assumptions regarding the future of the business, future plans and strategies, operational results, and other future conditions of the Bancorp. All statements other than statements of historical fact included in this release may constitute forward-looking statements, including statements regarding the prospects of our industry or our prospects, plans, expected operating results, financial position, or business strategy. In addition, forward-looking statements generally can be identified by the use of forward-looking words such as "plans," "expects" or "does not expect," "is expected," "look forward to," "budget," "scheduled," "estimates," "forecasts," "will continue," "intends," "the intent of," "have the potential," "anticipates," "does not anticipate," "believes," "should," "should not," "may," "could," "would," "might," "will," "be taken," "occur," "be achieved," or the negative of these terms or variations of them or similar terms. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such risks and uncertainties may include but are not necessarily limited to achieving the intended synergies with 1st Capital Bancorp post-merger, retaining employees and clients, fluctuations in interest rates (including but not limited to changes in depositor behavior and/or impacts on our core deposit intangible in relation thereto), inflation, government regulations and general economic conditions and competition within the business areas in which the Bank and the Bank's clients are conducting their operations, including the impact of proposed or imposed tariffs or other trade restrictions, labor or supply chain issues, health of the real estate market in California, Bancorp's ability to effectively execute its business plans and other factors beyond Bancorp and the Bank's control. Therefore, we caution you not to place undue reliance on any forward-looking statements contained herein, which reflect management's opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements.
Concurrent with this earnings release, Bancorp issued presentation slides providing supplemental information intended to be reviewed together with this release. Slides may be viewed online at: wccb.com/investor_relations.
Balance Sheet | As of | ||||
March 31, | December 31, | March 31, | |||
(Dollars in thousands) | 2026 | 2025 | 2025 | ||
ASSETS | |||||
Cash and cash equivalents | $ 161,514 | $ 190,678 | $ 45,000 | ||
Interest-earning deposits in other financial institutions | 100 | 104 | 350 | ||
Debt securities available for sale (amortized cost | 371,168 | 384,608 | 364,666 | ||
Debt securities held to maturity, net of allowance for credit losses of | 6,408 | 6,544 | 6,620 | ||
Loans held for investment | 2,219,275 | 2,172,464 | 2,105,247 | ||
Less: Allowance for credit losses on loans | (34,677) | (38,173) | (33,102) | ||
Loans, net of allowance | 2,184,598 | 2,134,291 | 2,072,145 | ||
Non-marketable equity investments, at cost | 15,355 | 15,355 | 15,355 | ||
Premises and equipment, net | 10,374 | 10,285 | 9,418 | ||
Goodwill | 40,054 | 40,054 | 40,054 | ||
Core deposit intangible asset, net | 22,871 | 23,858 | 26,984 | ||
Bank-owned life insurance | 29,692 | 29,492 | 27,727 | ||
Accrued interest receivable and other assets | 52,944 | 48,415 | 49,939 | ||
Total assets | $ 2,883,684 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Deposits | |||||
Noninterest-bearing | $ 985,415 | $ 1,012,201 | $ 954,663 | ||
Interest-bearing | 1,488,871 | 1,464,851 | 1,301,586 | ||
Total deposits | 2,474,286 | 2,477,052 | 2,256,249 | ||
Federal Home Loan Bank advances and other borrowings | — | — | 20,000 | ||
Subordinated debentures | 7,856 | 7,790 | 11,696 | ||
Accrued interest payable and other liabilities | 24,702 | 22,015 | 24,628 | ||
Total liabilities | 2,506,844 | 2,506,857 | 2,312,573 | ||
Shareholders' equity | |||||
Preferred stock, no par value; 10,000,000 shares authorized; no shares issued or outstanding | — | — | — | ||
Common stock, no par value; 30,000,000 shares authorized; 10,499,854, 10,482,767, and 10,586,179 outstanding as of March 31, 2026, December 31, 2025, and March 31, 2025, respectively | 198,659 | 198,250 | 205,122 | ||
Retained earnings | 195,025 | 182,448 | 150,346 | ||
Accumulated other comprehensive loss, net of taxes | (5,450) | (3,871) | (9,783) | ||
Total shareholders' equity | 388,234 | 376,827 | 345,685 | ||
Total liabilities and shareholders' equity | $ 2,883,684 | ||||
Income Statement | Three Months Ended | ||||
March 31, | December 31, | March 31, | |||
(Dollars in thousands, except share data) | 2026 | 2025 | 2025 | ||
Interest income | |||||
Loans, including fees | $ 37,105 | $ 38,219 | $ 36,340 | ||
Interest-earning deposits in other financial institutions | 1,367 | 1,630 | 290 | ||
Taxable securities | 2,836 | 3,229 | 2,572 | ||
Tax-exempt securities | 528 | 568 | 610 | ||
Total interest income | 41,836 | 43,646 | 39,812 | ||
Interest expense | |||||
Deposits | 7,590 | 8,125 | 7,186 | ||
Subordinated debentures | 164 | 1,077 | 238 | ||
Federal Home Loan Bank advances and other borrowings | — | — | 43 | ||
Total interest expense | 7,754 | 9,202 | 7,467 | ||
Net interest income before (reversal of) provision for credit losses | 34,082 | 34,444 | 32,345 | ||
(Reversal of) provision for credit losses on loans | (128) | 736 | 1,482 | ||
(Reversal of) provision for credit losses on unfunded loan commitments | (231) | 735 | (100) | ||
Net interest income after (reversal of) provision for credit losses | 34,441 | 32,973 | 30,963 | ||
Noninterest income | |||||
Service charges on deposits | 250 | 227 | 170 | ||
Loan servicing fees | 107 | 114 | 141 | ||
ATM fee income | 257 | 272 | 273 | ||
Earnings on bank-owned life insurance | 200 | 195 | 178 | ||
Dividends on non-marketable equity securities | 656 | 288 | 290 | ||
Gain (loss) on sale of securities | 97 | — | (257) | ||
Gain on sale of loans | 912 | — | — | ||
Gain on sale of other assets | 3 | — | 24 | ||
Other | 228 | 243 | 180 | ||
Total noninterest income | 2,710 | 1,339 | 999 | ||
Noninterest expense | |||||
Salaries and employee benefits | 8,538 | 8,360 | 8,481 | ||
Occupancy | 857 | 772 | 918 | ||
Furniture and equipment | 1,021 | 1,029 | 1,004 | ||
Marketing, business development and shareholder-related expense | 283 | 525 | 362 | ||
Data and item processing | 482 | 720 | 716 | ||
Regulatory assessments, including federal deposit insurance | 391 | 399 | 421 | ||
Amortization of core deposit intangibles | 986 | 991 | 1,067 | ||
Professional fees | 1,257 | 815 | 254 | ||
Acquisition-related expense | — | 201 | 250 | ||
Other | 2,221 | 1,977 | 2,024 | ||
Total noninterest expense | 16,036 | 15,789 | 15,497 | ||
Income before income taxes | 21,115 | 18,523 | 16,465 | ||
Income tax expense | 6,128 | 4,751 | 4,787 | ||
Net income | $ 14,987 | $ 13,772 | $ 11,678 | ||
Earnings per share | |||||
Basic | $ 1.45 | $ 1.32 | $ 1.11 | ||
Diluted | $ 1.43 | $ 1.31 | $ 1.10 | ||
Financial Highlights | As of or for the Three Months Ended | ||||||||
March 31, | December 31, | March 31, | |||||||
(Dollars in thousands, except share data) | 2026 | 2025 | 2025 | ||||||
Ratios and Growth Rates | |||||||||
Net interest margin, tax equivalent a | 5.11 % | 4.99 % | 5.29 % | ||||||
Cost of funds b | 1.28 % | 1.46 % | 1.32 % | ||||||
Efficiency ratio c | 43.59 % | 44.12 % | 46.48 % | ||||||
Return on: | |||||||||
Average assets | 2.12 % | 1.88 % | 1.78 % | ||||||
Average equity | 15.76 % | 14.55 % | 13.83 % | ||||||
Average tangible equity d | 19.75 % | 18.46 % | 18.34 % | ||||||
ACL/Gross loans | 1.56 % | 1.76 % | 1.57 % | ||||||
Noninterest-bearing deposits to total deposits | 39.83 % | 40.86 % | 42.31 % | ||||||
Gross loan-to-deposit ratio | 89.69 % | 87.70 % | 93.31 % | ||||||
Growth in loans | 2.15 % | 2.13 % | 2.94 % | ||||||
Growth in deposits | -0.11 % | 1.68 % | -2.35 % | ||||||
Capital Ratios | |||||||||
Tier 1 leverage ratio | 11.75 % | 11.12 % | 11.08 % | ||||||
Common equity tier 1 risk-based capital ratio | 13.08 % | 12.82 % | 12.47 % | ||||||
Tier 1 risk-based capital ratio | 13.08 % | 12.82 % | 12.47 % | ||||||
Total risk-based capital ratio | 14.65 % | 14.39 % | 14.23 % | ||||||
Tangible common equity ratio e | 11.49 % | 11.10 % | 10.75 % | ||||||
Per Share Data | |||||||||
Book value per share | $ 36.98 | $ 35.95 | $ 32.65 | ||||||
Tangible book value per share f | $ 30.98 | $ 29.85 | $ 26.32 | ||||||
Shares outstanding | 10,499,854 | 10,482,767 | 10,586,179 | ||||||
Basic weighted average common shares outstanding | 10,356,809 | 10,429,104 | 10,509,667 | ||||||
Diluted weighted average common shares outstanding | 10,487,876 | 10,546,203 | 10,625,489 | ||||||
a Net interest margin is calculated by dividing annualized taxable equivalent net interest income by period average interest-earning assets. Interest income on tax-exempt securities and loans are presented on a taxable-equivalent basis using the Federal statutory rate of 21 percent. | |||||||||
b Cost of funds is computed by dividing annualized interest expense by the sum of period average deposits and borrowings. | |||||||||
c Efficiency ratio equals total noninterest expenses divided by the sum of net interest income and noninterest income. | |||||||||
d Return on average tangible equity is calculated by dividing annualized net income by period average tangible shareholders' equity. Tangible shareholders' equity is defined in note f below. | |||||||||
e Tangible common equity ratio is calculated by dividing tangible shareholders' equity as defined in note f below by assets less goodwill and other intangible assets. | |||||||||
f Tangible equity equals total shareholders' equity less goodwill and other intangible assets. Tangible book value per share divides tangible equity by period ending shares outstanding. | |||||||||
Non-GAAP Financial Measures | As of or for the Three Months Ended | ||||
(Dollars in thousands, except share data) | March 31, | December 31, | March 31, | ||
2026 | 2025 | 2025 | |||
Total shareholders' equity | $ 388,234 | $ 376,827 | $ 345,685 | ||
Less: goodwill and other intangibles | 62,925 | 63,912 | 67,038 | ||
Tangible common equity (non-GAAP) | $ 325,309 | $ 312,915 | $ 278,647 | ||
Tangible book value per common share (non-GAAP) | $ 30.98 | $ 29.85 | $ 26.32 | ||
Total assets | $ 2,895,078 | $ 2,883,684 | $ 2,658,258 | ||
Less: goodwill and other intangibles | 62,925 | 63,912 | 67,038 | ||
Tangible assets | $ 2,832,153 | $ 2,819,772 | $ 2,591,220 | ||
Total shareholders' equity to total assets | 13.41 % | 13.07 % | 13.00 % | ||
Tangible equity to tangible assets (non-GAAP) | 11.49 % | 11.10 % | 10.75 % | ||
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SOURCE West Coast Community Bancorp