PORTLAND, Ore., July 28, 2026 /PRNewswire/ -- Pacific West Bancorp ("PWBK"), the holding company of Pacific West Bank ("PWB" or "Bank"), today reported net income of $450 thousand, or $0.16 per diluted share, for the quarter ended June 30, 2026. Results for the quarter reflect approximately $222 thousand of merger-related expenses. Excluding merger-related expenses, adjusted net income for the quarter would have been approximately $607 thousand, or $0.22 per diluted share.
Second Quarter and Year-over-Year Highlights:
- Total assets were $420.0 million as of June 30, 2026, compared to $403.4 million on March 31, 2026, an increase of $16.6 million or 4.1% for the quarter and an increase of $58.5 million or 16.2% year-over-year.
- Deposits totaled $379.7 million and grew by $19.9 million or 5.5% compared to $359.8 million on March 31, 2026, and by $61.0 million or 19.1% year-over-year.
- Net interest income before provision for credit losses for the quarter was $2.9 million. Year-to-date net interest income before provision for credit losses was $6.0 million, an increase of $878 thousand or 17.2% compared to the six months ended June 30, 2025.
- Non-interest income for the quarter was $623 thousand, an increase of $275 thousand or 79.0% compared to the prior quarter.
- Net income for the second quarter was $450 thousand, an increase of $295 thousand or 190.3% compared to the prior quarter. Year-to-date net income was $605 thousand, an increase of $394 thousand or 186.7% compared to the six months ending June 30, 2025.
"Our second quarter results demonstrate the momentum we built as an organization, reflecting the dedication of our team and the successful execution of our strategic priorities. We are proud to have grown total assets to $420 million while delivering accelerative financial performance, resulting in net income of $450 thousand. These achievements are especially meaningful as they were accomplished while working toward the merger and integration with 1st Security Bank of Washington. Throughout this transformative period, our employees remained focused on serving our clients and communities while successfully managing the complexities of combining our organizations. Their hard work, dedication, and resilience have positioned us for continued growth and long-term success, and I want to thank every member of our team for their outstanding contributions," said Jason Wessling, President and CEO of PWBK.
Total loans ended the quarter at $264.7 million compared to $260.4 million as of June 30, 2025, an increase of $4.3 million or 1.6%. Loan interest income year-to-date of $7.8 million is an increase of $431 thousand or 5.8% year-over-year. The increase in loan interest income reflects the Bank's success in renewing borrowers at market rates. Additionally, at quarter-end, unfunded loan commitments increased to $48.5 million from $43.8 million at prior quarter-end due primarily from newly originated construction loans and secured lines of credit.
Deposits grew year-over-year by $61.0 million or 19.1%, to $379.7 million compared to $318.7 million at the end of second quarter 2025. Fee income from depository networks and service charges contributed to the Bank's year-to-date non-interest income of $971 thousand, compared to $472 thousand for the same period in the prior year, an increase of $499 thousand or 105.7%.
PWB maintained a strong capital position during the quarter, ending the period with a Community Bank Leverage Ratio ("CBLR") of 9.14%, exceeding the regulatory "Well-Capitalized" threshold. The Bank's capital strength reflects continued earnings generation and prudent balance sheet management, providing the flexibility to support lending opportunities, investment in strategic initiatives, and the ability to navigate changing economic conditions while maintaining a sound risk profile.
Ed Kawasaki, Chairman of the Bank and Bancorp said, "As we announce what is likely to be PWB's final earnings release, I want to express my sincere gratitude to everyone who has been part of our remarkable 22-year journey. To our employees, thank you for your dedication and commitment. To our Board of Directors, thank you for your guidance and stewardship. To our clients, thank you for your trust and loyalty, which have been the foundation of our success. And lastly but more importantly, to the members and organizations in our community who supported our mission throughout our journey and provided a firm foundation from which to grow and thrive.
Together, we have built more than a bank—we have built lasting relationships and a legacy of service to our communities. It has been a privilege to serve alongside all of you, and on behalf of the Board, thank you for making PWB's story one of which we can all be proud.
Now, by strategically joining forces with 1st Security Bank, we are not just expanding our reach within the Pacific Northwest we are exponentially increasing PWB's impact and unlocking richer opportunities for our employees, with the ability to deliver deeper resources to our communities and our clients."
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.
Media Contact:
Jason Wessling
President and Chief Executive Officer
(503) 912-2101
Jwessling@bankpacificwest.com
Balance Sheets (amounts in 000s, except per share data and ratios) | ||||||||||||||||||||||||
For the Quarter Ended | % Change | % Change | ||||||||||||||||||||||
6/30/2026 | 3/31/2026 | QoQ | 6/30/2025 | YoY | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Cash & Due from Banks | $ 94,310 | $ 77,399 | 21.8 % | $ 40,679 | 131.8 % | |||||||||||||||||||
Investments – Certificates of Deposit | - | - | NM | 498 | (100.0 %) | |||||||||||||||||||
Investments - Debt Securities AFS | 45,750 | 39,612 | 15.5 % | 41,015 | 11.5 % | |||||||||||||||||||
Investments – Debt Securities HTM | 5,156 | 5,997 | (14.0 %) | 7,247 | (28.9 %) | |||||||||||||||||||
Allowance for Credit Losses - HTM | (126) | (132) | (4.5 %) | (270) | (53.3 %) | |||||||||||||||||||
Investments - Debt Securities, Net | 50,780 | 45,477 | 11.7 % | 47,992 | 5.8 % | |||||||||||||||||||
Investments - Correspondent Stock | 323 | 458 | (29.5 %) | 922 | (65.0 %) | |||||||||||||||||||
Loans Receivable, Net Fees | 264,687 | 269,629 | (1.8 %) | 260,395 | 1.6 % | |||||||||||||||||||
Allowance for Credit Losses | (3,293) | (3,294) | (0.0 %) | (2,946) | 11.8 % | |||||||||||||||||||
Loans Receivable, Net | 261,394 | 266,335 | (1.9 %) | 257,449 | 1.5 % | |||||||||||||||||||
Premises and Equipment, Net | 4,446 | 4,629 | (4.0 %) | 4,955 | (10.3 %) | |||||||||||||||||||
Deferred Tax Asset, Net | 1,380 | 1,540 | (10.4 %) | 1,877 | (26.5 %) | |||||||||||||||||||
BOLI | 4,775 | 4,733 | 0.9 % | 4,607 | 3.6 % | |||||||||||||||||||
Other Assets | 2,615 | 2,788 | (6.2 %) | 2,571 | 1.7 % | |||||||||||||||||||
Total Assets | $ 420,023 | $ 403,359 | 4.1 % | $ 361,550 | 16.2 % | |||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Deposits | $ 379,719 | $ 359,842 | 5.5 % | $ 318,693 | 19.1 % | |||||||||||||||||||
Borrowed Funds | 2,036 | 5,039 | (59.6 %) | 5,048 | (59.7 %) | |||||||||||||||||||
Other Liabilities | 2,119 | 2,735 | (22.5 %) | 3,242 | (34.6 %) | |||||||||||||||||||
Total Liabilities | 383,874 | 367,616 | 4.4 % | 326,983 | 17.4 % | |||||||||||||||||||
STOCKHOLDERS' EQUITY | 36,149 | 35,743 | 1.1 % | 34,567 | 4.6 % | |||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ 420,023 | $ 403,359 | 4.1 % | $ 361,550 | 16.2 % | |||||||||||||||||||
Shares Outstanding at End-of-Period | 2,707,530 | 2,705,631 | 2,696,001 | |||||||||||||||||||||
Book Value Per Share | $ 13.35 | $ 13.21 | $ 12.82 | |||||||||||||||||||||
Allowance for Credit Losses to Total Loans | 1.27 % | 1.24 % | 1.20 % | |||||||||||||||||||||
Non-performing Assets (Non-accrual Loans) | $ 7,880 | $ 7,878 | $ 8,440 | |||||||||||||||||||||
Leverage Ratio | 9.14 % | 9.03 % | 10.15 % | |||||||||||||||||||||
Statements of Net Income (amounts in 000s, except per share data and ratios) | |||||||||||||||||||||||||
For the Quarter Ended | Year to Date | ||||||||||||||||||||||||
6/30/2026 | 3/31/2026 | % Change | 6/30/2026 | 6/30/2025 | % Change | ||||||||||||||||||||
INTEREST INCOME | |||||||||||||||||||||||||
Loan Interest Income | $ 3,888 | $ 3,931 | (1.1 %) | $ 7,819 | $ 7,388 | 5.8 % | |||||||||||||||||||
Investments & Due from Banks | 1,173 | 1,060 | 10.7 % | 2,233 | 1,527 | 46.2 % | |||||||||||||||||||
Loan Fee Income | 57 | 78 | (26.9 %) | 135 | 100 | 35.0 % | |||||||||||||||||||
Total Interest Income | 5,118 | 5,069 | 1.0 % | 10,187 | 9,015 | 13.0 % | |||||||||||||||||||
INTEREST EXPENSE | 2,195 | 2,016 | 8.9 % | 4,211 | 3,917 | 7.5 % | |||||||||||||||||||
NET INTEREST INCOME BEFORE | 2,923 | 3,053 | (4.3 %) | 5,976 | 5,098 | 17.2 % | |||||||||||||||||||
PROVISION FOR CREDIT LOSSES | (15) | 63 | NM | 48 | 120 | (60.0 %) | |||||||||||||||||||
NET INTEREST INCOME AFTER | 2,938 | 2,990 | (1.7 %) | 5,928 | 4,978 | 19.1 % | |||||||||||||||||||
NON-INTEREST INCOME | 623 | 348 | 79.0 % | 971 | 472 | 105.7 % | |||||||||||||||||||
NON-INTEREST EXPENSE | 2,923 | 3,118 | (6.3 %) | 6,041 | 5,115 | 18.1 % | |||||||||||||||||||
INCOME BEFORE PROVISION FOR | 638 | 220 | 190.0 % | 858 | 335 | 156.1 % | |||||||||||||||||||
PROVISION FOR INCOME TAXES | 188 | 65 | 189.2 % | 253 | 124 | 104.0 % | |||||||||||||||||||
NET INCOME | $ 450 | $ 155 | 190.3 % | $ 605 | $ 211 | 186.7 % | |||||||||||||||||||
Earnings Per Share - Basic | $ 0.16 | $ 0.06 | $ 0.22 | $ 0.08 | |||||||||||||||||||||
Earnings Per Share - Diluted | $ 0.16 | $ 0.06 | $ 0.22 | $ 0.08 | |||||||||||||||||||||
Return on Average Equity | 5.03 % | 1.75 % | 3.40 % | 1.25 % | |||||||||||||||||||||
Return on Average Assets | 0.44 % | 0.16 % | 0.30 % | 0.12 % | |||||||||||||||||||||
Net Interest Margin | 2.98 % | 3.17 % | 3.07 % | 3.10 % | |||||||||||||||||||||
Efficiency Ratio | 82 % | 92 % | 87 % | 92 % | |||||||||||||||||||||
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SOURCE Pacific West Bancorp
