West Coast Community Bancorp Reports Strong Earnings for the First Quarter of 2025; Board Declares Increase in Quarterly Cash Dividend

Core Insights - West Coast Community Bancorp reported unaudited quarterly earnings of $11.7 million, or $1.10 per dilutive share, for Q1 2025, a significant increase from $3.8 million in the previous quarter and $9.3 million in Q1 2024 [1][3][6] - The increase in earnings was attributed to the efficient integration of the merger with 1st Capital Bancorp, organic loan growth, and disciplined expense management [2][3] - The company declared a quarterly cash dividend of $0.20 per common share, reflecting a commitment to enhancing shareholder value [2][3] Financial Performance - Adjusted net income for Q1 2025, excluding merger-related charges, would have been $12.0 million, compared to $14.0 million in Q4 2024 [1][3] - Gross loans totaled $2.1 billion, an increase of $60 million (3%) from Q4 2024 and $726.5 million (53%) from Q1 2024, driven by organic growth and the merger [3][17] - Total assets were $2.7 billion, a decrease of $22.2 million (1%) from Q4 2024 but an increase of $945.6 million (55%) from Q1 2024 [3][4] Loan and Deposit Trends - The bank's loan growth was primarily driven by new originations in Silicon Valley, contributing to commercial and industrial loans and construction loans [3][17] - Deposits totaled $2.3 billion, a decrease of $54.2 million (2%) from Q4 2024 but an increase of $800.3 million (55%) from Q1 2024, influenced by seasonal outflows in the agricultural sector [4][22] - Nonaccrual loans increased to $2.3 million (0.11% of gross loans), reflecting two real estate secured loans [4][19] Capital and Liquidity - Total shareholders' equity increased to $345.7 million, a rise of $12.7 million (4%) from Q4 2024 and $107.6 million (45%) from Q1 2024 [26] - The primary liquidity ratio was 11.8% as of March 31, 2025, compared to 14.5% at the end of 2024 [4] - The allowance for credit losses was $33.1 million (1.57% of total loans), reflecting a slight increase due to strong loan growth [4][20] Efficiency and Profitability Metrics - The efficiency ratio improved to 46.48% in Q1 2025 from 61.62% in the previous quarter [4] - Return on average assets (ROAA) was 1.78% for Q1 2025, up from 0.57% in Q4 2024 [4] - Taxable equivalent net interest margin was 5.29% in Q1 2025, compared to 5.38% in Q4 2024 [4][8]