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

Jan 28 2026 21:00 GMT

PORTLAND, Ore. , Jan. 28, 2026 /PRNewswire/ -- Pacific West Bancorp ("PWBK"), the holding company of Pacific West Bank ("PWB" or "Bank"), today reported net income of $126 thousand or $0.05 per diluted share for the quarter ended December 31, 2025. Net income for 2025 was $646 thousand or $0.24 per diluted share.

Fourth Quarter and Year-Over-Year Highlights:

Loans totaled $276.6 million and grew by $4.4 million or 1.6%, when compared to the end of the third quarter of 2025, and by $23.8 million or 9.4%, year over year.
Deposits totaled $342.2 million at quarter end and grew by $25.6 million or 8.1%, when compared to the end of the third quarter of 2025, and by $69.5 million or 25.5%, year over year.
Net interest income for the quarter before provision for credit losses increased by $235 thousand or 8.4%, compared to the third quarter of 2025, and by $2.07 million or 23.4%, when compared to 2024.
Non-interest income for the quarter was $290 thousand, an increase of $46 thousand or 18.9% compared to prior quarter and was $1.0 million for the year, an increase of $339 thousand or 50.9% compared to the prior year.
Net income for the fourth quarter was $126 thousand, consistent with prior quarter's net income of $128 thousand, excluding a one-time gain on sale of a security in the third quarter of $182 thousand. For the year ended December 31, 2025, net income was $646 thousand compared to a net loss of $338 thousand during 2024.
Net interest margin improved during the quarter to 3.37% from 3.17% for the third quarter and the year-to-date net interest margin of 3.19% represented a 14.4% increase compared to the net interest margin of 2.79% for 2024.

"Earnings from operations continue to grow as interest income surpassed $18 million while interest expense declined. This improvement reflects our deliberate strategy to restructure the balance sheet, reduce reliance on higher-cost funding, and enhance asset yields through new production and loan repricing. We also advanced key income diversification efforts, driving non-interest income to $1.0 million for 2025. Together, these actions are positioning the Bank for sustained, profitable growth" said Jason Wessling, President and Chief Executive Officer.

"We enter 2026 with momentum," Wessling added. "Loan pipelines remain strong and our margin continues to benefit from both asset–yield strength and ongoing deposit–mix improvements. As we look ahead, our focus remains on disciplined balance–sheet management and delivering high–touch, relationship–based banking to the businesses and communities we serve."

Total loans grew to $276.6 million at year end as the Bank continued to capitalize on a strong loan pipeline of new and existing clients. Fourth quarter loan interest income totaled $4.01 million, an increase of $146 thousand or 3.8% compared to the third quarter of 2025, and up $1.1 million or 7.9% compared to 2024. The increases in loan interest income are the results of both organic growth and portfolio repricing as loans funded in prior periods at historically low interest rates begin to renew and contractually reprice.

Interest income for the quarter was $4.9 million, up $62 thousand or 1.3% from the prior quarter and for the year ended December 31, 2025, interest income totaled $18.7 million, an increase of $1.3 million or 7.7% compared to 2024.

In the fourth quarter, the Bank recorded a higher provision for credit losses of $248 thousand due to a charge off on one lending relationship. There were no new relationships added to non-performing assets during the quarter.

Total deposits at quarter end totaled $342.2 million, reflecting an increase of $25.6 million over the prior quarter and a $69.5 million increase year over year. The decrease in quarter over quarter interest expense of $173 thousand reflects the Bank's ability to quickly respond to interest rate cuts and ongoing strategic initiatives to rebalance the deposit portfolio and pursue low-cost commercial deposits. Non-interest bearing deposits ended the year at $78.7 million, an increase of $8.3 million or 11.8% year over year. These efforts contributed to net interest margin expansion to 3.37% for the quarter, up from 3.17% in the prior quarter and up to 3.19% for the year compared to 2.79% for 2024.

As of December 31, 2025, stockholders' equity totaled $35.7 million, reflecting an increase of $1.8 million compared to the prior year end. This growth was driven by retention of earnings and continued appreciation in market value of the Bank's investment portfolio. The Bank's capital position remains strong and allows for continued balance sheet growth, exceeding regulatory minimum requirements, with a Community Bank Leverage Ratio of 9.80%.

Income before taxes and provision for credit losses increased to $1.6 million in 2025, compared to a net loss before taxes and provision for credit losses in 2024. The Bank's effective tax rate for 2025 rose relative to the prior year due to expiring tax benefits and the disproportionate impact of the Oregon Corporate Activities Tax. Driven by strong core revenue generation and an improved funding mix, net income for 2025 reached $646 thousand, marking a meaningful improvement from the prior year's net loss and establishing a stronger foundation entering 2026.

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

12/31/2025

9/30/2025

QoQ

12/31/2024

YoY

ASSETS

Cash & Due from Banks

$ 53,516

$ 30,228

77.0 %

$ 12,781

318.7 %

Investments - CD

0.0 %

498

(100.0 %)

Investments - Debt Securities AFS

39,308

40,475

(2.9 %)

43,338

(9.3 %)

Investments – Debt Securities HTM

5,997

6,747

(11.1 %)

7,746

(22.6 %)

Allowance for Credit Losses - HTM Invest.

(174)

(168)

3.6 %

(267)

(34.8 %)

Investments - Debt Securities, Net

45,131

47,054

(4.1 %)

50,817

(11.2 %)

Investments - Correspondent Stock

424

426

(0.5 %)

1,560

(72.8 %)

Gross Loans, Net of Fees

276,566

272,140

1.6 %

252,767

9.4 %

Allowance for Credit Losses

(3,192)

(3,207)

(0.5 %)

(3,553)

(10.2 %)

Loans, Net

273,374

268,933

1.7 %

249,214

9.7 %

Premises and Equipment, Net

4,900

4,788

2.3 %

4,614

6.2 %

Deferred Tax Asset, Net

1,584

1,762

(10.1 %)

1,944

(18.5 %)

BOLI

4,692

4,652

0.9 %

4,527

3.6 %

Other Assets

2,411

2,454

(1.8 %)

2,843

(15.2 %)

Total Assets

$ 386,032

$ 360,297

7.1 %

$ 328,798

17.4 %

LIABILITIES

Deposits

$ 342,244

$ 316,675

8.1 %

$ 272,709

25.5 %

Borrowed Funds

5,042

5,045

(0.1 %)

19,338

(73.9 %)

Other Liabilities

3,158

3,237

(4.5 %)

2,862

10.3 %

Total Liabilities

350,444

324,957

7.8 %

294,909

18.8 %

STOCKHOLDERS' EQUITY

35,653

35,340

0.9 %

33,889

5.2 %

Total Liabilities and Stockholders' Equity

$ 386,032

$ 360,297

7.1 %

$ 328,798

17.4 %

Shares Outstanding at End-of-period

2,697,153

2,687,116

Book Value Per Share

$ 13.22

$ 13.10

$ 12.61

Allowance for Credit Losses to Total Loans
and HTM

1.19 %

1.21 %

1.47 %

Non-performing Assets (Non-accrual Loans
and OREO)

$ 7,963

$ 8,332

$ 840

Leverage Ratio

9.80 %

9.96 %

10.29 %

Statements of Net Income

(amounts in 000s, except per share data and ratios)

For the Quarter Ended

Year to Date

12/31/2025

9/30/2025

%
Change

12/31/2025

12/31/2024

% Change

INTEREST INCOME

Loan Interest Income

$ 4,011

$ 3,865

3.8 %

$ 15,264

$ 14,152

7.9 %

Investments & Due from Banks

799

862

(7.3 %)

3,187

2,906

9.7 %

Loan Fee Income

(22.3 %)

268

325

(17.5 %)

Total Interest Income

4,883

4,821

1.3 %

18,719

17,383

7.7 %

INTEREST EXPENSE

1,852

2,025

(8.5 %)

7,793

8,527

(8.6 %)

NET INTEREST INCOME BEFORE LOAN
LOSS PROVISION

3,031

2,796

8.4 %

10,926

8,856

23.4 %

PROVISION FOR CREDIT LOSSES

248

171

45.0 %

539

176

206.3 %

NET INTEREST INCOME AFTER LOAN
LOSS PROVISION

2,783

2,625

6.0 %

10,387

8,680

19.7 %

NON-INTEREST INCOME

290

244

18.9 %

1,005

666

50.9 %

NON-INTEREST EXPENSE

2,752

2,609

5.5 %

10,476

9,756

7.4 %

GAIN ON SALE OF SECURITY

182

(100.0 %)

182

100.0 %

INCOME (LOSS) BEFORE PROVISION
FOR INCOME TAXES

321

442

(27.4 %)

1,098

(410)

367.8 %

PROVISION (BENEFIT) FOR INCOME
TAXES

195

132

47.7 %

452

(72)

727.8 %

NET INCOME (LOSS)

$ 126

$ 310

(59.4 %)

$ 646

$ (338)

291.1 %

Earnings Per Share - Basic

$ 0.05

$ 0.11

$ 0.24

$ (0.13)

Earnings Per Share - Diluted

$ 0.05

$ 0.11

$ 0.24

$ (0.13)

Return on Average Equity

1.40 %

3.53 %

1.87 %

(1.00) %

Return on Average Assets

0.13 %

0.34 %

0.18 %

(0.10) %

Net Interest Margin

3.37 %

3.17 %

3.19 %

2.79 %

Efficiency Ratio

88 %

80 %

88 %

103 %

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

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SOURCE Pacific West Bancorp

Company Announcements

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