West Coast Bancorp Reports Record Q1 Earnings, Boosts Dividend

SANTA CRUZ, CA – April 21, 2026 – West Coast Community Bancorp (OTCQX: WCCB) today announced a robust start to 2026, posting record first-quarter earnings of $15.0 million. The impressive results, which represent a 28% increase over the same period last year, were accompanied by an increase in the company's quarterly cash dividend, signaling strong confidence from its leadership.

The parent company of West Coast Community Bank reported diluted earnings per share of $1.43, a significant jump from $1.10 in the first quarter of 2025. In a move reflecting this financial strength, the Bancorp's Board of Directors declared a dividend of $0.24 per share, an increase of $0.01. This marks another step in the bank's consistent delivery of shareholder value, a performance that has earned it a "Strong Buy" rating from market analysts.

"Our first quarter results reflect continued earnings momentum, attractive returns and ongoing balance sheet strength," said Krista Snelling, Chairman and Chief Executive Officer. "Given our strong earnings momentum, capital position and continued growth in tangible book value, the Board's decision to increase the dividend reflects confidence in the durability of our performance and our ability to deliver consistent value to shareholders."

A Quarter of Strategic Gains

Beneath the headline numbers, West Coast Community Bancorp’s success was fueled by a series of strategic financial maneuvers. A key contributor to the quarter's performance was a significant boost in noninterest income, which more than doubled year-over-year to $2.7 million. This was largely driven by a $912,000 gain on the sale of $8.9 million in non-core residential loans, a portfolio acquired through the successful merger with 1st Capital Bancorp in late 2024. This divestment highlights management's focus on optimizing the balance sheet and shedding assets that fall outside its core strategy.

Further bolstering income was a special dividend of $368,000 received on the bank's holdings of Federal Home Loan Bank (FHLB) of San Francisco stock. These gains helped offset a slight, anticipated dip in net interest income to $34.1 million, a decrease attributed primarily to the first quarter having two fewer interest-earning days than the previous quarter. The bank also demonstrated prudent expense management, with its efficiency ratio—a key measure of a bank's overhead as a percentage of its revenue—improving to 43.59% from 46.48% a year ago.

The bank's cost of funds also decreased to 1.28%, down from 1.46% in the prior quarter and 1.32% in the prior year. This reduction was partly attributed to the bank benefiting from lower rates paid on deposit accounts in response to interest rate cuts by the Federal Open Market Committee in late 2025.

Fueling Growth Through Targeted Lending

West Coast Community Bancorp continued its expansion, growing total assets to $2.90 billion, an 8.9% increase from the prior year. The engine of this growth remains its robust lending program, with total loans climbing to $2.22 billion, up 5.4% year-over-year. The growth was not indiscriminate; it was strategically targeted. The most notable increase came from a 14% quarter-over-quarter surge in revolving commercial lines of credit, particularly for agriculture-related businesses.

This agricultural focus is a direct result of the bank's recent expansion, with its new San Luis Obispo team successfully tapping into a vital sector of the Californian economy. New loan commitments originated during the quarter totaled an impressive $139.5 million, underscoring strong demand from new and existing clients. While total deposits saw a marginal seasonal dip of 0.1% to $2.47 billion, they remained up nearly 10% from the previous year, reflecting a solid and growing customer base.

The bank's liquidity position remains exceptionally strong. Its primary liquidity ratio stood at 14.4%, and its net available liquidity sources of $1.65 billion provided a coverage ratio of 132% over its uninsured and uncollateralized deposits, offering a substantial cushion in a competitive financial environment.

Fortifying the Foundation: Asset Quality and Capital Strength

While pursuing growth, the bank has maintained a disciplined approach to risk management. Asset quality metrics showed a mixed but actively managed picture. Nonaccrual loans decreased to $10.9 million from $14.1 million in the previous quarter, primarily due to the foreclosure of a $10.0 million land development loan which was transferred to Other Real Estate Owned (OREO). A previously established specific reserve of $3.2 million on this loan was charged-off upon the transfer, a move that reflects the difference between the loan's cost and the property's fair value. The bank is now actively working to sell the property and seek recourse from guarantors.

Despite this specific charge-off, the overall allowance for credit losses as a percentage of total loans decreased to 1.56% from 1.76%, partly due to the charge-off itself and favorable changes in the loan portfolio mix following the sale of the non-core residential loans. The bank's capital ratios remain well above the regulatory requirements for a well-capitalized institution, with its total risk-based capital ratio increasing to 14.65%. This financial fortitude is further reflected in the growth of its tangible book value per share, which rose to $30.98, up from $26.32 a year prior.

Charting a New Course: The Path to SEC Registration

Perhaps one of the most significant forward-looking developments is the bank's active preparation to become an SEC registrant. This move, which contributed to a year-over-year increase in professional fees, signals a new chapter of maturity and ambition for the institution. Transitioning from the OTCQX market to a national exchange as a full SEC-reporting company involves higher compliance costs and stricter regulatory scrutiny under frameworks like the Sarbanes-Oxley Act.

However, the strategic benefits are substantial. Becoming an SEC registrant enhances corporate transparency, broadens access to a much larger pool of institutional investors, and significantly raises a company's profile in the financial markets. For West Coast Community Bancorp, this step is a clear indicator of its intent to scale its operations and compete on a larger stage. It positions the bank for future growth opportunities, including potential capital raises and acquisitions, by building a foundation of governance and disclosure that sophisticated investors demand. This strategic pivot, combined with its consistent award-winning performance and deep community roots, solidifies its reputation as a formidable and forward-thinking player in the regional banking sector.