PR Newswire
PORTLAND, Ore. , April 25, 2024 /PRNewswire/ -- Pacific West Bancorp, the holding company of Pacific West Bank ("PWB"), today announced a first quarter net loss of ($251) thousand or ($0.09) per diluted share.
Year over year demonstrated continued balance sheet growth while first quarter, 2024 was seasonally quiet.
- Total deposits grew $12 million or 5.2% year over year and $2 million during the quarter.
- Total loans grew $40 million or 19% year over year and $770 thousand during the quarter.
- Total interest income grew by 27% or $873 thousand year over year and $36 thousand during the quarter.
- Credit quality remained strong with no loans past due greater than 90 days or on nonaccrual.
- The Bank's capital position remained strong and well above regulatory requirements with a leverage ratio of 11.14% at the end of the first quarter.
- Assets ended the quarter at $315 million .
"We are delighted to celebrate Pacific West Bank's 20th anniversary, marking two decades of dedicated service to our clients and the community. As we look back, we are reminded of our strong foundations and the growth we have achieved together," stated Jason Wessling , PWB's President. "The first quarter demonstrated slower growth, as is typical for our business, while year over year growth remained robust. Over the past year and recent quarter, we continued to be challenged by higher deposit rates compressing our net interest margin. Despite these challenges, we are optimistic about our path ahead as assets reprice higher in the near term and deposit costs continue to stabilize."
In the first quarter of this year, loan interest income expanded by $844 thousand or 32.4% when compared to the first quarter of 2023, driven by a 49-basis point increase in loan yield. While borrowers experienced increased borrowing costs, loan quality remained strong with no loans past due beyond 90 days or categorized as non-accrual, reflecting sound lending practices. "The growth in our loan pipeline during the first quarter has been substantial, despite depleting it by recording $17 million in new loans in the fourth quarter of 2023, which increased our interest income quarter over quarter. This momentum is driven by our exceptional team of bankers who continue to deliver outstanding service to our commercial clients in Portland and Southwest Washington ," stated Robert Holden , PWB's Chief Credit Officer.
While deposit pricing remained a key factor in maintaining core banking relationships in a high-interest-rate environment, the Bank observed a gradual shift from rate-focused discussions to those centered on service-related opportunities, pointing to a more stable deposit environment. The deposit pipeline for next quarter is robust. The Bank's digital division has carefully brought select brand partners out of their beta phase, and deposits from the Digital Division should represent seven percent of total deposits by the end of third quarter. These deposits add granularity, stability, fee income, and are less sensitive to interest rate changes.
In the first quarter, the Bank's yield on interest-bearing assets remained steady at 5.38%, nearly the same as the prior quarter's 5.39%. However, the cost of funds for these assets rose by 39 basis points to 2.70%. The Bank took borrowings through the Bank Term Funding Program (BTFP) in March 2023 at a favorable rate. This borrowing matured and was refinanced at a higher rate, which partly contributed to the increased cost of funds, resulting in a net interest margin (NIM) of 2.69% for the first quarter of 2024.
The Bank's unrealized loss on its available-for-sale (AFS) securities portfolio remained steady at $4 million in the first quarter, up from $3.9 million in the previous quarter. This figure included the impact of a fair value hedge contract that the Bank initiated in the second quarter of 2023. Despite the increase in unrealized losses, the hedge contract continued to be profitable, generating $66,000 in interest income for the Bank in the first quarter of 2024. Moreover, the hedge continues to protect the Bank from further unrealized losses in a rising interest rate environment.
Terry Peterson , PWB's CEO noted, "As we continue growing loans at higher rates combined with repricing of variable rate assets, our net interest margin and profitability will expand during the second half of this year. We currently are liability sensitive, so earnings for our Bank improves significantly with falling interest rates. Strong loan quality and operating efficiencies also allows for continued expansion of profitable business opportunities."
About Pacific West Bancorp: Information about the Holding Company'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:
Terry A. Peterson
Chief Executive Officer
(503) 905-2217
tpeterson@bankpacificwest.com
|
Balance Sheets (amounts in 000s, except per share data and ratios) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
% Change |
|
|
|
% Change |
|
||
|
|
|
|
03/31/2024 |
|
12/31/2023 |
|
QOQ |
|
03/31/2023 |
|
YOY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
||
|
|
Cash & due from banks |
$ 5,150 |
|
$ 10,693 |
|
-51.8 % |
|
$ 27,364 |
|
-81.2 % |
|
|
|
|
Investments - CD |
747 |
|
747 |
|
0.0 % |
|
996 |
|
-25.0 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments - Debt Securities HTM |
7,746 |
|
7,746 |
|
0.0 % |
|
7,746 |
|
0.0 % |
|
|
|
|
Allowance for HTM |
(312) |
|
(256) |
|
21.7 % |
|
(324) |
|
-3.8 % |
|
|
|
|
Investments - Debt Securities AFS |
39,652 |
|
41,053 |
|
-3.4 % |
|
43,102 |
|
-8.0 % |
|
|
|
|
Net Investments - Debt Securities |
47,086 |
|
48,543 |
|
-3.0 % |
|
50,523 |
|
-6.8 % |
|
|
|
|
Investments - Correspondent Stock |
1,852 |
|
1,424 |
|
30.0 % |
|
1,190 |
|
55.7 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans net of fees |
249,172 |
|
248,402 |
|
0.3 % |
|
208,631 |
|
19.4 % |
|
|
|
|
Allowance for Loans and Leases |
(3,201) |
|
(3,257) |
|
-1.7 % |
|
(2,804) |
|
14.2 % |
|
|
|
|
|
Net loans |
245,971 |
|
245,146 |
|
0.3 % |
|
205,827 |
|
19.5 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and equipment, net |
4,484 |
|
4,629 |
|
-3.1 % |
|
4,272 |
|
5.0 % |
|
|
|
|
Deferred tax asset, net |
1,909 |
|
1,806 |
|
5.7 % |
|
1,481 |
|
28.9 % |
|
|
|
|
BOLI |
4,414 |
|
4,379 |
|
0.8 % |
|
4,272 |
|
3.3 % |
|
|
|
|
Other assets |
3,245 |
|
2,616 |
|
24.1 % |
|
2,514 |
|
29.1 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
$ 314,858 |
|
$ 319,983 |
|
-1.6 % |
|
$ 298,438 |
|
5.5 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
||
|
|
Deposits |
$ 239,698 |
|
$ 237,470 |
|
0.9 % |
|
$ 227,937 |
|
5.2 % |
|
|
|
|
Borrowed funds |
38,787 |
|
44,782 |
|
-13.4 % |
|
33,781 |
|
14.8 % |
|
|
|
|
Other liabilities |
2,624 |
|
3,681 |
|
-28.7 % |
|
2,512 |
|
4.4 % |
|
|
|
|
|
Total Liabilities |
281,109 |
|
285,933 |
|
-1.7 % |
|
264,233 |
|
6.4 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
33,750 |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
34,051 |
|
-0.9 % |
|
34,205 |
|
-1.33 % |
|
||
|
|
|
Total Liabilities and Stockholders' Equity |
$ 314,858 |
|
$ 319,983 |
|
-1.6 % |
|
$ 298,438 |
|
5.5 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at end-of-period |
2,682,581 |
|
2,676,564 |
|
|
|
2,671,399 |
|
|
|
||
|
Book value per share |
$ 12.58 |
|
$ 12.72 |
|
|
|
$ 12.80 |
|
|
|
||
|
Allowance for credit losses to total loans
|
1.37 % |
|
1.37 % |
|
|
|
1.45 % |
|
|
|
||
|
Non-performing assets (non-accrual loans
|
$ - |
|
$ - |
|
|
|
$ - |
|
|
|
||
|
Leverage Ratio |
11.14 % |
|
11.45 % |
|
|
|
12.83 % |
|
|
|
||
|
Statements of Net Income (amounts in 000s, except per share data and ratios) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
|
|
Year to Date |
|
|
||||
|
|
|
|
03/31/2024 |
|
12/31/2023 |
|
%
|
|
03/31/2024 |
|
03/31/2023 |
|
% Change |
|
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Loans Interest Income |
$ 3,449 |
|
$ 3,252 |
|
6.1 % |
|
$ 3,449 |
|
$ 2,605 |
|
32.4 % |
|
|
|
Investments & due from banks |
589 |
|
669 |
|
-11.9 % |
|
589 |
|
535 |
|
10.0 % |
|
|
|
Loan fee income |
39 |
|
121 |
|
-67.7 % |
|
39 |
|
64 |
|
-39.4 % |
|
|
|
|
Total interest income |
4,077 |
|
4,041 |
|
0.9 % |
|
4,077 |
|
3,204 |
|
27.2 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE |
2,041 |
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
1,733 |
|
17.8 % |
|
2,041 |
|
636 |
|
220.7 % |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME BEFORE LOAN
|
2,036 |
|
2,309 |
|
-11.8 % |
|
2,036 |
|
2,568 |
|
-20.7 % |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR CREDIT LOSSES |
- |
|
70 |
|
-100.0 % |
|
- |
|
150 |
|
-100.0 % |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME AFTER LOAN
|
2,036 |
|
2,239 |
|
-9.1 % |
|
2,036 |
|
2,418 |
|
-15.8 % |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST INCOME |
152 |
|
161 |
|
-5.8 % |
|
152 |
|
191 |
|
-20.5 % |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST EXPENSE |
2,517 |
|
2,502 |
|
0.6 % |
|
2,517 |
|
2,277 |
|
10.5 % |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE PROVISION
|
(329) |
|
(102) |
|
224.0 % |
|
(329) |
|
332 |
|
-199.3 % |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION (BENEFIT) FOR INCOME
|
(78) |
|
49 |
|
-260.1 % |
|
(78) |
|
97 |
|
-181.2 % |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ (251) |
|
$ (151) |
|
66.5 % |
|
$ (251) |
|
$ 235 |
|
-206.8 % |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - Basic |
$ (0.09) |
|
$ (0.06) |
|
|
|
$ (0.09) |
|
$ 0.09 |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - Diluted |
$ (0.09) |
|
$ (0.06) |
|
|
|
$ (0.09) |
|
$ 0.09 |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average equity |
-3.00 % |
|
-2.42 % |
|
|
|
-3.00 % |
|
2.82 % |
|
|
||
|
Return on average assets |
-0.32 % |
|
-0.27 % |
|
|
|
-0.32 % |
|
0.34 % |
|
|
||
|
Net interest margin |
2.69 % |
|
3.08 % |
|
|
|
2.69 % |
|
3.92 % |
|
|
||
|
Efficiency ratio |
115 % |
|
102 % |
|
|
|
115 % |
|
83 % |
|
|
||
View original content to download multimedia:
https://www.prnewswire.com/news-releases/pacific-west-bancorp-pwbk-announces-first-quarter-financial-results-302128163.html
SOURCE Pacific West Bancorp
