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

Core Insights - Pacific West Bancorp reported a third quarter net income of $310 thousand, or $0.11 per diluted share, reflecting a significant increase compared to previous quarters [1][12][14]. Financial Performance - Total loans reached $272.1 million, growing by $11.7 million or 4.5% quarter-over-quarter and by $15.7 million or 6.1% year-over-year [12]. - Total deposits at the end of the quarter were $316.7 million, showing a year-over-year growth of $41.1 million or 14.9%, despite a strategic reduction of $7.5 million in high-cost municipal deposits [4][12]. - Interest income for the quarter was $4.8 million, an increase of $187 thousand or 4.0% from the prior quarter, with year-to-date interest income totaling $13.8 million, up $1.1 million or 8.4% compared to the same period in 2024 [5][12]. Margin and Efficiency - The net interest margin improved to 3.17% for the quarter, up from 3.11% in the prior quarter, and represented a 16.4% increase compared to the same period in 2024 [4][12][14]. - Net interest income 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 [12][14]. Credit and Provisioning - The provision for credit losses in the third quarter totaled $171 thousand, compared to $120 thousand for the second quarter, reflecting the growth in loans [3][12]. - The allowance for credit losses to total loans was 1.21%, slightly up from 1.20% in the previous quarter [13][14]. Capital and Equity - Stockholders' equity totaled $35.3 million, an increase of $773 thousand from the prior quarter, driven by retained earnings and appreciation in the investment portfolio [7][12]. - The community bank leverage ratio stood at 9.96%, exceeding regulatory minimum requirements [7][14]. Leadership and Recognition - The company welcomed Aran Loftus as the new Chief Financial Officer, bringing extensive experience in the financial institutions sector [3]. - Pacific West Bancorp was recognized by the Portland Business Journal for the second consecutive year as one of the "Best Places to Work," highlighting its positive culture and commitment to employees [3].