Pacific West Bancorp Reports Positive Growth in Q2 Financial Performance

Pacific West Bancorp's Q2 Financial Results Overview

Portland, Ore., July 25, 2025 – Pacific West Bancorp (PWBK), the parent company of Pacific West Bank (PWB), has released its financial results for the second quarter, showcasing a robust net income of $130,000, equivalent to $0.05 per diluted share. This announcement marks a significant improvement for the banking institution, especially in the face of economic challenges both locally and nationally.

Key Financial Highlights

1. Strong Deposit Growth
Total deposits reached an impressive $318.6 million, marking a $28.0 million increase or 9.6% quarter-over-quarter and a substantial year-over-year increase of $71.0 million or 28.7%.

2. Decreased Borrowings
The company has successfully decreased Federal Home Loan Bank (FHLB) borrowings by $9.6 million since the last quarter and by $31.8 million from the same quarter last year.

3. Increased Net Interest Income
Net interest income before loan loss provision rose by $144,000 or 5.8% compared to Q1 2025, and it increased by $1.1 million or 26.6% when compared to Q2 2024.

4. Growth in Non-Interest Income
Non-interest income improved to $245,000 during the second quarter, reflecting an increase of $19,000 or 8.5% since the first quarter of 2025 and an impressive rise of $164,000 or 53.5% compared to the previous year’s second quarter.

5. Net Income Increase
The net income of $130,000 this quarter represents a growth of $49,000 or 60.8% compared to the first quarter of 2025 and a remarkable $692,000 or 143.8% year-over-year.

CEO Commentary

Jason Wessling, President and CEO of PWB, expressed his satisfaction with the current quarter's performance, stating, "We are pleased to see our momentum continue as we grew deposits by $28.0 million for the quarter and an impressive $71.0 million year-over-year. This robust growth enabled us to reduce reliance on costly non-core funding sources, enhancing our earnings potential. The dedication of our experienced bankers has once again paid off, reflected in the increased deposit relationships we have established within our communities. Despite ongoing economic challenges, our commitment to relationship-based banking has positioned us for growth."

Final Figures and Future Outlook

Deposits have now reached a significant milestone, with the bank utilizing these funds to reduce overnight borrowings by $9.6 million, translating to a 65.4% reduction in borrowings during the quarter. Overall, the bank’s net interest margin has remained consistent at 3.11% from Q1 to Q2 2025 but reflects a 45 basis point increase when comparing to Q2 2024.

Gross loans concluded the second quarter at $260.4 million, a slight increase of $4.1 million or 1.6% over the previous quarter. With a solid loan pipeline, expectations remain high for further origination success in the latter half of the year. PWB originated loans worth $9.9 million this quarter, achieving an average weighted rate of 6.84%. However, the bank also reported a commercial real estate loan charge-off of $705,000 and has set aside an additional $120,000 for credit losses, resulting in an allowance to total loans ratio of 1.20% by the quarter's end.

Shareholder and Capital Information

As of June 30, 2025, total shareholders' equity has reached $34.6 million, representing a $331,000 increase from the previous quarter, bolstered primarily through earnings retention and increased market value of investment portfolios. PWB maintains a strong capital position and commands a community bank leverage ratio of 10.15%, well above the minimum regulatory requirements.

For more information regarding Pacific West Bancorp and its financial performance, stakeholders can refer to the OTC marketplace, where information on the holding company's stock can be found under the symbol PWBK.

About Pacific West Bank

Founded in 2004, Pacific West Bank focuses on providing tailored banking solutions to businesses, nonprofits, and individuals throughout the greater Portland/Vancouver Metro area, with branch locations strategically positioned in Downtown Portland, Lake Oswego, West Linn, and Vancouver, WA. The bank prides itself on its commitment to professionalism and customer service, ensuring a top-tier banking experience for all clients.

This article contains certain forward-looking statements regarding Pacific West Bancorp’s performance and expectations moving forward. Readers are encouraged not to place undue reliance on these forward-looking statements as actual results may differ due to various factors beyond the company's control.