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

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.

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

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).

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 9/30/2025 6/30/2025 QOQ 9/30/2024 YTDASSETS 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 2,685,943Book value per share $ 13.10 $ 12.82 $ 12.74Allowance for credit losses to total loans 1.21% 1.20% 1.45%and HTMNon-performing assets (non-accrual loans $ 8,332 $ 8,440 $ 840and OREO)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 % ChangeINTEREST 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 2,796 2,621 6.7% 7,894 6,308 25.1%LOSS PROVISIONPROVISION FOR CREDIT LOSSES 171 120 42.5% 291 166 75.3%NET INTEREST INCOME AFTER LOAN 2,625 2,501 5.0% 7,603 6,142 23.8%LOSS PROVISIONNON-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 – – NMINCOME (LOSS) BEFORE PROVISION 442 199 122.4% 776 (626) 224.0%FOR INCOME TAXESPROVISION (BENEFIT) FOR INCOME 132 269 91.0% 256 (133) 292.5%TAXESNET 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 ContactJason WesslingPresident and Chief Executive Officer(503) 912-2101Jwessling@bankpacificwest.com

https://edge.prnewswire.com/c/img/favicon.png?sn=SF09306&sd=2025-10-28

View original content to download multimedia:https://www.prnewswire.com/news-releases/pacific-west-bancorp-pwbk-announces-third-quarter-financial-results-302597540.html

SOURCE Pacific West Bancorp

https://rt.newswire.ca/rt.gif?NewsItemId=SF09306&Transmission_Id=202510281600PR_NEWS_USPR_____SF09306&DateId=20251028