Pacific West Bancorp (“PWBK”) Announces Second Quarter Financial Results

Pacific WestBancorp (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.

https://mma.prnewswire.com/media/2062958/Pacific_West_Bancorp_horizontal_Logo.jpg

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).

PacificWestBankwasformedin2004bylocalbusinesspeopletodeliverloananddeposit productsolutions 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, WestLinn, 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 YTD‌ASSETS 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 2,685,204Book value per share $ 12.82 $ 12.71 $ 12.57Allowance for credit losses to total loans 1.20% 1.44% 1.42%and HTMNon-performing assets (non-accrual loans $ 8,440 $ 880 $ 840and OREO)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 % ChangeINTEREST 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 2,621 2,477 5.8% 5,098 4,028 26.6%LOSS PROVISION‌PROVISION FOR CREDIT LOSSES 120 – 120 65 84.6%‌NET INTEREST INCOME AFTER LOAN 2,501 2,477 1.0% 4,978 3,963 25.6%LOSS PROVISION‌NON-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 199 136 46.7% 335 (629) 153.2%FOR INCOME TAXES‌PROVISION (BENEFIT) FOR INCOME 69 55 25.8% 124 (148) 183.6%TAXES‌NET 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)

https://c212.net/c/img/favicon.png?sn=SF37916&sd=2025-07-25

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

https://rt.newswire.ca/rt.gif?NewsItemId=SF37916&Transmission_Id=202507251601PR_NEWS_USPR_____SF37916&DateId=20250725