Fourth Quarter and Full Year 2021

FOR IMMEDIATE RELEASE: January 27, 2022

Pacific West Bank Announces Fourth Quarter and Full-Year 2021 Earnings

West Linn, Oregon, January 27, 2022. - Pacific West Bank (OTCM: PWBO) today reported financial results for the fourth quarter and the full-year ending December 31, 2021. Pacific West Bank ("Bank") today announced fourth quarter net income of $209 thousand or $0.08 per diluted share, and full-year 2021 net income of $1.5 million or $0.57 per diluted share.

Fourth Quarter 2021 Results:

  • Net income of $209 thousand or $0.08 per diluted share.
  • Core loan growth (excluding PPP loans) of $31.5 million or 22% during the quarter.
  • Loan Interest income grew by $158 thousand or 9.2% compared to prior quarter.
  • Total assets as of quarter-end were $274.7 million.
  • Originated $37.2 million in core loan (excluding PPP loans) commitments during the quarter.
  • PPP loans of $19.5 million were forgiven by the SBA.
  • There were no loans past due greater than 30 days as of quarter-end, consistent with prior periods.
  • Capital levels as of December 31, 2021, remained strong with a leverage ratio of 12.11%.

Full Year 2021 Results:

  • Net income of $1.5 million or $0.57 per diluted share.
  • Core loan growth of $55.1 million or 46.0% during the year.
  • Interest and fee income grew $3.5 million or 54.2% compared to the full year of 2020.
  • Asset growth of $62.9 million or 29.7%.
  • Origination of $80.7 million in core loan commitments (excluding PPP loans).
  • Origination of $64.2 million of SBA PPP loans.
  • PPP loans of $73.1 million were forgiven by the SBA.

"Loan growth momentum accelerated in each quarter during 2021 and achieved net growth (excluding PPP) of $31.5 million in the fourth quarter. We continued to build on local business relationships formed through the production and forgiveness of SBA PPP loans in the Portland community," said the Bank's CEO Terry Peterson. "The Portland business community recognized our leadership and has embraced Pacific West Bank as the local bank of choice," he continued.

Net income for 2021 was $1.5 million or $0.57 per share. Net income for the fourth quarter was $209 thousand or $0.08 per share, down from prior quarter net income of $609 thousand or $0.23 per share. Lower net income compared to prior quarter was affected by an increased provision for loan loss due to accelerated loan growth,

Fourth Quarter and Full Year 2021

lower fees recognized from PPP, and a one-time tax adjustment related to 2020 and IRS Code 382 limitations. These were offset by an increase in loan interest income from core loans (excluding PPP loans).

"The Bank continues to grow in loans, deposits, and assets, with experienced bankers who are able to support and foster the growth trajectory of the Bank. To that end, I am excited to announce Robert Holden as our SVP, Chief Credit Officer. Mr. Holden joins the Bank with significant banking experience in the San Fransico Bay area where he held various Executive positions with several community banks. However, Rob is a local Oregonian who spent his formative years in Portland," said Robert Harding, President and COO.

As of December 31, 2021, loans totaled $195.5 million net of fees, which included $21.5 million in PPP loans net of fees. In 2021, the Bank grew core loans by $55.1 million or 46.0% during the year. Core loan growth accelerated throughout the year with net loans growing $31.5 million or 22.0% during the fourth quarter. The accelerated fourth quarter loan growth created a provision for loan loss of $250 thousand during the quarter, while loan quality metrics remain strong. There were no charge-offs in 2021 and no loans past due greater than 30 days as of December 31, 2021. The allowance for loan losses to total core loans (excluding PPP loans) was 1.27% as of December 31, 2021.

"As the Portland economy emerges from the pandemic headwinds and business activity increases, we are experiencing accelerating loan growth as our experienced lending team continues to find quality opportunities. We anticipate on-going merger announcements will help to fuel our momentum," said Alex Gosline SVP, and Lending Team Lead.

Deposits as of December 31, 2021, totaled $231.3 million. Deposit growth in 2021 totaled $61.2 million or 36.0% when compared to prior year end. Total deposit balances decreased slightly in the fourth quarter, as a result of a decrease in concentrated deposits balances, which were offset by increased volume in individual deposit relationships. Additionally, the Bank continues to grow full relationships with local businesses by offering a broad range of treasury products.

"2021 was a challenging year for our local businesses, and an opportunity for Pacific West Bank to claim our leadership position in the communities we serve," said Ed Kawasaki, Board Chairman. "We rose to the challenge and proved to our community that local matters when it matters most. Our momentum will continue into 2022 and beyond," he continued.

About Pacific West Bank: Information about the Bank's stock may be obtained through the over-the-counter marketplace at www.otcmarkets.com(symbol PWBO).

Pacific West Bank was formed in 2004 by Portland 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 Metro area with offices strategically located in Downtown Portland, Lake Oswego, and West Linn.

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.

Fourth Quarter and Full Year 2021

Balance Sheets

(amounts in 000s, except per share data and ratios)

% Change

% Change

12/31/2021

9/30/2021

Quarter

12/31/2020

YTD

ASSETS

$

28,040

$

44,456

$

26,904

Cash & due from banks

-36.9%

4.2%

Investments - CD

2,685

2,685

0.0%

2,685

0.0%

Investments - Debt Securities

35,994

36,236

-0.7%

21,866

64.6%

Investments - Correspondent Stock

954

954

0.0%

851

12.1%

Gross loans net of fees

195,527

182,957

6.9%

149,536

30.8%

Allowance for loan losses

(2,225)

(1,975)

12.7%

(1,675)

32.8%

Net loans

193,302

180,982

6.8%

147,861

30.7%

Premises and equipment, net

4,451

4,570

-2.6%

4,904

-9.2%

Deferred tax asset, net

1,493

1,337

11.7%

1,661

-10.1%

BOLI

4,104

4,077

N/A

3,968

3.4%

Other assets

3,669

1,392

163.7%

1,084

238.5%

Total Assets

$

274,693

$

276,688

-0.7%

$

211,784

29.7%

LIABILITIES

$

231,263

$

233,738

$

170,095

Deposits

-1.1%

36.0%

Borrowed funds

5,000

5,000

0.0%

5,000

0.0%

Other liabilities

3,306

2,999

10.2%

2,914

13.4%

Total Liabilities

239,569

241,738

-0.9%

178,009

34.6%

STOCKHOLDERS' EQUITY

35,124

34,951

0.5%

33,775

4.0%

Total Liabilities and Stockholders' Equity

$

274,693

$

276,688

-0.7%

$

211,784

29.7%

Shares outstanding at end-of-period

2,662,566

2,659,516

2,657,254

Book value per share

$

13.19

13.14

$

12.71

Allowance for loan losses to total loans

1.14%

1.08%

1.12%

Non-performing assets (non-accrual loans & OREO)

$

18

$

24

$

51

Leverage Ratio

12.11%

12.55%

15.86%

Fourth Quarter and Full Year 2021

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Disclaimer

Pacific West Bank published this content on 27 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 January 2022 22:24:55 UTC.