SANTA CRUZ, Calif., July 21, 2026 (GLOBE NEWSWIRE) -- West Coast Community Bancorp (“Bancorp,” OTCQX: WCCB), the parent company of West Coast Community Bank (the “Bank”), announced unaudited earnings for the quarter ended June 30, 2026, of $12.2 million, compared to $15.0 million for the first quarter of 2026 and $12.9 million for the quarter ended June 30, 2025. Earnings for the six months ended June 30, 2026 increased 10.4% to $27.1 million from $24.6 million in the same period in the prior year.

Basic and diluted earnings per share (“EPS”) for the second quarter of 2026, were $1.17 and $1.16, respectively, compared to $1.45 and $1.43, respectively, for the first quarter of 2026, and $1.23 and $1.22, respectively, for the second quarter of 2025. For the six months ended June 30, 2026, basic and diluted EPS were $2.62 and $2.59, respectively, compared to $2.34 and $2.31, respectively, for the first six months of 2025.

During the second quarter of 2026, Bancorp redeemed remaining higher-cost subordinated debentures scheduled to mature in June 2036, which was assumed in the merger with 1^st Capital Bancorp in 2024 ("sub debt redemption"). The sub debt redemption resulted in the accelerated accretion of the remaining $1.8 million of unaccreted purchase discount, which was recorded in interest expense during the second quarter. The sub debt redemption reduced both basic and diluted EPS by approximately $0.12 for both the three and six months ended June 30, 2026.

"We delivered another strong quarter, marked by solid loan and deposit growth and further expansion of tangible book value. Our robust capital and liquidity position also enabled early redemption of higher-cost subordinated debentures,” said Krista Snelling, Chairman and Chief Executive Officer of West Coast Community Bancorp. “With capital ratios strengthened by our earnings power and no outstanding borrowings, we enter the second half of the year well positioned to continue building shareholder value."

On July 15, 2026, the Bancorp Board of Directors declared a $0.01 increase in quarterly cash dividend to $0.25 per common share, payable on August 10, 2026, to shareholders of record at the close of business on August 4, 2026.

“Increasing the dividend reflects the Board's confidence in our earnings trajectory and its commitment to rewarding shareholders while preserving ample capacity to support future growth,” added Snelling.

Financial Highlights

• Net income for the second quarter of 2026 decreased $2.8 million, or 18.9%, from the first quarter of 2026, partly attributed to the impact of sub debt redemption mentioned above. First quarter results reflected higher noninterest income from a $912 thousand gain on the sale of $8.9 million of non-core residential loans acquired from the merger with 1^st Capital Bancorp and a $368 thousand special dividend received on our holdings of Federal Home Loan Bank ("FHLB") of San Francisco stock. Net income for the first six months of 2026 increased $2.6 million, or 10.4%, compared to the first six months of 2025. The increase was largely driven by higher net interest income, primarily from year-over-year loan and interest-bearing cash growth, and noninterest income mentioned previously.
• Total loans were $2.27 billion at June 30, 2026, compared to $2.22 billion at March 31, 2026, and $2.11 billion at June 30, 2025, representing an increase of $52.1 million, or 2.3% from March 31, 2026, and an increase of $161.5 million, or 7.7%, from June 30, 2025. Loan growth was most notable in commercial and commercial real estate ("CRE") loans, especially agriculture-related businesses sourced from our San Luis Obispo team. The organic loan growth during 2026 was partially offset by the sale of $8.9 million residential loans noted above and a transfer of a $10.0 million land development loan to other real estate owned ("OREO") in the first quarter of 2026.
• Provision for credit losses was $1.5 million for the second quarter of 2026, compared to a reversal of provision for credit losses of $359 thousand for the first quarter of 2026, and a provision for credit losses of $620 thousand for the second quarter of 2025. The increase in provision for credit losses for the second quarter of 2026 is largely attributed to loan growth during the quarter and the change in mix of loans, as well as an increase in the allowance for individually evaluated loans. Reversal of provision for credit losses in the first quarter of 2026 reflected a $258 thousand release from the general allowance for loan losses resulting from the sale of the non-core acquired loans in that quarter.
• Total assets were $2.95 billion at June 30, 2026, compared to $2.90 billion at March 31, 2026, and $2.65 billion at June 30, 2025, representing an increase of $50.1 million, or 1.7%, from March 31, 2026, and $294.8 million, or 11.1%, from June 30, 2025. The quarter-over-quarter increase in total assets is largely attributed to a $52.1 million increase in loans held for investment. The year-over-year increase in total assets is largely attributed to a $161.5 million increase in loans held for investment, a $106.7 million increase in cash and cash equivalents and a $22.7 million increase in available-for-sale ("AFS") debt securities. Strong quarter-over-quarter and year-over-year deposit growth contributed to the growth in assets.
• Total deposits were $2.52 billion at June 30, 2026, compared to $2.47 billion at March 31, 2026, and $2.26 billion at June 30, 2025, representing an increase of $48.4 million, or 2.0%, from March 31, 2026, and an increase of $262.6 million, or 11.6%, from June 30, 2025. The increase in deposits during the second quarter and year-over-year was driven by the establishment of new client relationships.
• Primary liquidity ratio, defined as cash and cash equivalents, deposits held in other banks and unpledged AFS securities as a percentage of total assets, was 13.0%, 14.4% and 11.7% at June 30, 2026, March 31, 2026, and June 30, 2025, respectively.
• Taxable equivalent net interest margin was 4.92%, 5.11% and 5.30% for the quarters ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. The quarter-over-quarter decrease in the net interest margin is largely attributed to accelerated accretion associated with the sub debt redemption. Accelerated accretion reduced the net interest margin by approximately 27 basis points during the second quarter. Excluding the impact of accelerated accretion, the net interest margin was approximately 5.19% for the second quarter of 2026. For the first six months of 2026 and 2025, the taxable equivalent net interest margin was 5.01% and 5.30%, respectively. The year-over-year decrease was driven by accelerated accretion associated with the sub debt redemption in the second quarter, which reduced the net interest margin by approximately 14 basis points during the first six months of 2026. In addition, a decrease in purchase discount accretion on acquired loans during the first six months of 2026 compared to the same period in 2025 contributed to the decrease in net interest margin.
• The cost of funds was 1.59%, 1.28% and 1.41% for the quarters ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. The quarter-over-quarter increase in the cost of funds is attributed to $1.8 million of accelerated accretion associated with the sub debt redemption. Excluding the impact of accelerated accretion, the cost of funds was approximately 1.29% for the second quarter of 2026. For the first six months of 2026 and 2025, the cost of funds was 1.43% and 1.37%, respectively. The year-over-year increase was driven by accelerated accretion associated with the sub debt redemption in the second quarter, which increased the cost of funds by approximately 15 basis points during the first six months of 2026.
• Return on average equity ("ROAE") was 12.32%, 15.76% and 14.71% for the quarters ended June 30, 2026, March 31, 2026 and June 30, 2025, respectively. ROAE was 14.01% and 14.28% for the first six months of 2026 and 2025, respectively. Excluding accelerated accretion on the sub debt redemption, adjusted ROAE (a non-GAAP measure) was 13.62%, 15.76% and 14.84% for the quarters ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. Adjusted ROAE was 14.67% and 14.34% for the six months ended June 30, 2026 and 2025, respectively. Please also see "Non-GAAP Financial Measures" below.
• Return on average tangible equity (“ROATE”), a non-GAAP measure, was 15.47%, 19.75% and 19.20% for the quarters ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. ROATE was 17.56% and 18.78% for the first six months of 2026 and 2025, respectively. Excluding accelerated accretion on the sub debt redemption, adjusted ROATE (a non-GAAP measure) was 17.01%, 19.75% and 19.35% for the quarters ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. Adjusted ROATE was 18.35% and 18.86% for the six months ended June 30, 2026 and 2025, respectively. Please also see "Non-GAAP Financial Measures" table below.
• Return on average assets (“ROAA”) was 1.69%, 2.12% and 1.95% for the quarters ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. ROAA was 1.90% and 1.87% for the first six months of 2026 and 2025, respectively. Excluding accelerated accretion on the sub debt redemption, adjusted ROAA (a non-GAAP measure) was 1.87%, 2.12% and 1.97% for the quarters ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. Adjusted ROAA was 1.99% and 1.88% for the six months ended June 30, 2026 and 2025, respectively. Please also see "Non-GAAP Financial Measures" table below.
• The efficiency ratio, a non-GAAP measure, was 46.24%, 43.59% and 45.16% for the quarters ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. The efficiency ratio was 44.87% and 45.81% for the first six months of 2026 and 2025, respectively. The increase in the efficiency ratio for the second quarter of 2026 compared to the first quarter of 2026 can be attributed in part to the sub debt redemption, which reduced net interest income by $1.8 million in the second quarter, and the absence of a $912 thousand gain on sale of non-core acquired loans that occurred in the first quarter of 2026. Excluding the accelerated accretion on the sub debt redemption, the adjusted efficiency ratio (a non-GAAP measure) was 43.91%, 43.59% and 44.95% for the quarters ended June 30, 2026, March 31, 2026 and June 30, 2025, respectively. The adjusted efficiency ratio was 43.75% and 45.70% for the six months ended June 30, 2026 and 2025, respectively. Please also see "Non-GAAP Financial Measures" table below.
• Bancorp’s regulatory capital ratios exceeded applicable minimum capital adequacy requirements, and the Bank continued to meet the regulatory capital thresholds necessary to be categorized as well capitalized under the prompt corrective action framework. Bancorp’s total risk-based capital ratio was 14.47%, 14.65% and 14.46% at June 30, 2026, March 31, 2026, and June 30, 2025, respectively. The redemption of the subordinated debt reduced Bancorp's total risk-based capital ratio by 36 basis points at June 30, 2026. The tangible common equity to tangible asset ratio was 11.67%, 11.49% and 11.26% at June 30, 2026, March 31, 2026, and June 30, 2025, respectively.
• Tangible book value per share, a non-GAAP measure, was $32.01, $30.98 and $27.51 at June 30, 2026, March 31, 2026, and June 30, 2025, respectively. The increase in the second quarter of 2026 was primarily driven by net income of $12.2 million, partially offset by a $257 thousand increase in accumulated other comprehensive loss, stemming from a slight increase in after-tax unrealized losses on the AFS debt securities portfolio, and cash dividends declared and paid of approximately $2.5 million.
  

Net Interest Income and Net Interest Margin

Three months ended June 30, 2026, as compared to three months ended March 31, 2026

Net interest income was $33.1 million for the second quarter of 2026, representing a decrease of $944 thousand, or 2.8%, from $34.1 million for the first quarter of 2026. The quarter-over-quarter decrease in net interest income was attributed to the sub debt redemption, which increased interest expense by approximately $1.8 million during the second quarter. While interest income increased during the second quarter, due in large part to a favorable change in the mix of earning assets yields stemming from loan growth during the quarter, the increase in interest income was more than offset by the accelerated accretion associated with the sub debt redemption.

The taxable equivalent net interest margin was 4.92% for the second quarter of 2026, compared to 5.11% for the first quarter of 2026. While the yield on earning assets increased by 10 basis points in the second quarter, due to the favorable change in mix of interest earning assets, the net interest margin was negatively impacted by the sub debt redemption. The sub debt redemption impacted the cost of funds and the net interest margin by approximately 30 basis points and 27 basis points, respectively, in the second quarter.

The cost of deposits for the second quarter of 2026 was 1.27%, compared to 1.25% for the first quarter of 2026. The quarter-over-quarter increase can be attributed to slightly higher average balances of interest-bearing deposits, due to an increase in average money market balances, as well as a modest decrease in the average balance of non-interest bearing deposits during the quarter.

Three months ended June 30, 2026, as compared to three months ended June 30, 2025

Net interest income for the second quarter of 2026 was approximately $331 thousand, or 1.0%, higher than the $32.8 million recorded for the second quarter of 2025. The year-over-year increase in net interest income was due in large part to higher interest income on loans stemming from year-over-year loan growth, as well as an increase in interest income associated with higher balances of interest-earning cash and due from and investment securities. The year-over-year increase in interest income was partially offset by higher interest expense, largely attributed to accelerated accretion associated with the sub debt redemption in the second quarter of 2026 and an increase in interest expense on deposits attributed to strong deposit growth over the last year. The year-over-year increase in interest expense was partially offset by a decrease in interest expense on FHLB advances, as strong year-over-year deposit growth has allowed the Bank to rely less on wholesale funding to support the growth in earning assets.

The taxable equivalent net interest margin for the second quarter of 2026 was approximately 38 basis points lower than the 5.30% reported for the second quarter of 2025. The decrease in the net interest margin was largely due to the sub debt redemption, which negatively impacted the net interest margin by approximately 27 basis points in the second quarter of 2026. Slightly offsetting the impact of the sub debt redemption on the cost of funds and the net interest margin was the absence of interest expense on FHLB advances during the second quarter of 2026, as compared to the second quarter of 2025, as well as a modest year-over-year decrease in the cost of deposits. A year-over-year decrease in the yield on earning assets also contributed slightly to the decrease in the net interest margin and was largely associated with a year-over-year change in the overall mix of and yields on interest-earning assets, including a lower overall yield on loans due in part to certain loan products indexed to the prime rate that re-priced lower because of a 75-basis-point reduction in the Federal Funds target rate in late 2025. In addition, the yield on loans was impacted by a year-over-year decrease in purchase discount accretion on acquired loans of approximately $805 thousand.

The cost of deposits of 1.27% for the second quarter of 2026 was approximately three basis points lower than the 1.30% for the second quarter of 2025. The slight year-over-year decrease can be attributed to lower overall average rates on interest-bearing deposits as well as a modest year-over-year increase in average non-interest bearing deposit balances.

Six months ended June 30, 2026, as compared to six months ended June 30, 2025

Net interest income during the first six months of 2026 was $67.2 million, representing an increase of $2.1 million, or 3.2%, when compared to $65.2 million for the first six months in 2025. The increase in net interest income for the first six months of 2026, as compared to the same period in 2025, is largely attributed to higher interest income stemming from year-over-year growth in loans as well as an increase in interest income associated with higher average balances of interest-earning cash and due from and investment securities. The increase in interest income was partially offset by higher interest expense, largely attributed to accelerated accretion associated with the sub debt redemption in the second quarter of 2026 and an increase in interest expense on deposits attributed to strong year-over-year deposit growth. The year-over-year increase in interest expense was partially offset by a decrease in interest expense on FHLB advances, as the Bank has relied less on wholesale funding to support the year-over-year growth in earning assets largely due to strong growth in deposits.

The taxable equivalent net interest margin for the first six months of 2026 was 5.01%, compared to 5.30% for the first six months of 2025. The year-over-year decrease in the net interest margin was largely due to the sub debt redemption, which added approximately 15 basis points to the cost of funds for the first six months of 2026, and negatively impacted the net interest margin by approximately 14 basis points. Slightly offsetting the impact of the sub debt redemption on the cost of funds and the net interest margin was the absence of interest expense on FHLB advances during the first six months of 2026, as compared to the same period in 2025, as well a slightly lower cost of deposits in 2026. Earning asset yields were approximately 24 basis points lower for the first six months of 2026, as compared to the same period in 2025, which also contributed to the year-over-year decrease in the net interest margin. The decrease is attributable in part to year-over-year changes in the overall mix of and yields on interest-earning assets, with higher average balances of lower-yielding interest-earning cash, coupled with a decrease in the overall average yield on loans. The year-over-year decrease in the average yield on loans was driven in part by certain loan products indexed to the prime rate that re-priced lower over the last year because of reductions in the Federal Funds target rate in late 2025. In addition, an approximate $1.7 million year-over-year decrease in purchase discount accretion on acquired loans during the first six months of 2026, as compared to the same period in 2025, contributed to the lower overall yield on loans.

The cost of deposits was 1.26% for the first six months of 2026, representing a three basis point decrease from the cost of deposits for the same period in 2025. The slight year-over-year decrease can be attributed to lower overall average rates on interest-bearing deposits.

The following tables compare interest income, average interest-earning assets, interest expense, average interest-bearing liabilities, net interest income, net interest margin and cost of funds for each period presented:

Noninterest Income

Noninterest income for the second quarter of 2026 was $1.2 million, compared to $2.7 million for the first quarter of 2026 and $1.4 million for the second quarter of 2025. The quarter-over-quarter decrease in noninterest income is largely attributed to the absence of a $912 thousand gain on the sale of $8.9 million of non-core loans acquired in the merger with 1^st Capital Bancorp, as well as a $368 thousand special dividend that was received on our holdings of FHLB of San Francisco stock, which both occurred during the first quarter. The decrease in noninterest income for the second quarter of 2026, as compared to the second quarter of 2025, can be attributed to a decrease in dividends on our holdings of FHLB of San Francisco stock related to a change in FHLB's dividend policy and a year-over-year decrease in other miscellaneous income.

For the first six months of 2026, noninterest income was $3.9 million compared to $2.4 million for the same period in 2025. The year-over-year increase is largely attributed to the $912 thousand gain on the sale of non-core loans and the $368 thousand special dividend received on our holdings of FHLB of San Francisco stock discussed above. Further, the increase in noninterest income for the first six months of 2026, as compared to the same period in 2025, is also due to favorable changes in the gain (loss) on the sale of securities with approximately $32 thousand in gains recorded during the first six months of 2026, compared to a loss of $279 thousand during the same period in 2025.

Noninterest Expense

Three months ended June 30, 2026, as compared to three months ended March 31, 2026

Noninterest expense for the second quarter of 2026 was $15.9 million, compared to $16.0 million for the first quarter of 2026. The quarter-over-quarter decrease in noninterest expense can be attributed to the decline in professional fees incurred in connection with our ongoing preparation to become an SEC registrant, lower data and item processing costs associated with one-time credits received from our core system processor and an overall decrease in other miscellaneous expenses during the second quarter. These decreases were partially offset by higher salaries and employee benefits, namely annual director stock grants totaling $495 thousand in the second quarter of 2026.

Three months ended June 30, 2026, as compared to three months ended June 30, 2025

Noninterest expense was higher by approximately $420 thousand during the second quarter of 2026 when compared to the second quarter of 2025. The year-over-year increase can be attributed to higher salaries and employee benefits, higher occupancy and furniture and equipment costs and an increase in other expenses. The increase in salaries and employee benefits is attributed to merit increase in employee salaries and commissions expense as well as higher stock-based compensation costs including annual director stock grants. These increases within salaries and employee benefits were partially offset by year-over-year decreases in group insurance costs and higher salary deferrals associated with increased loan originations in 2026. Higher occupancy and furniture and equipment costs can be attributed in part to our expansion into the San Jose, Calif. market. Increases in other expenses were due in part to $129 thousand in expenses associated with a land development property the Bank foreclosed upon in the first quarter of 2026, as well as higher other miscellaneous expenses. Partially offsetting these increases in noninterest expense were lower marketing and business development expenses as well as lower data and item processing costs. The decrease in marketing and business development costs is largely due to the absence of rebranding-related expenses incurred in 2025, while the decrease in data and item processing costs resulted from one-time credits received from our core system processor during 2026.

Six months ended June 30, 2026, as compared to six months ended June 30, 2025

Noninterest expense for the first six months of 2026 was $31.9 million, compared to $30.9 million for the same period in 2025. The year-over-year increase can be attributed to higher professional fees, salaries and employee benefits, furniture and equipment costs and other expenses, partially offset by decreases in marketing and business development expenses, lower data and item processing costs and the absence of expenses incurred in 2025 in connection with the acquisition of 1^st Capital Bancorp. The increase in professional fees is due to costs associated with our ongoing preparation to become an SEC registrant. The increase in salaries and employee benefits is attributed to higher employee salaries, commissions expense and stock-based compensation costs. These increases within salaries and employee benefits were partially offset by higher salary deferrals associated with a year-over-year increase in loan originations. The increase in furniture and equipment expenses can be attributed in part to our expansion into the San Jose, Calif. market. The increase in other expenses can be attributed to higher miscellaneous expenses as well as $134 thousand in expenses incurred during the first six months of 2026 associated with a property the Bank foreclosed upon in the first quarter. Partially offsetting these increases in noninterest expense were lower marketing and business development costs and data and item processing costs that were previously discussed.

Liquidity Position

The following table summarizes the Bank’s liquidity for each period reported:

As of June 30, 2026, net liquidity of $1.62 billion exceeded uninsured and uncollateralized deposits of $1.29 billion, with a coverage ratio of 125%.

Investment Portfolio

Securities issued by U.S. government-sponsored agencies, U.S. Treasury bonds and Small Business Administration ("SBA") securities accounted for 54%, 21% and 1%, respectively, of the investment portfolio as of June 30, 2026. These securities carry explicit or implicit credit guarantees from the U.S. government and thus present minimal credit or liquidity risk. Municipal bonds, corporate bonds and private-label collateralized mortgage obligations/asset-backed instruments represent 18%, 3% and 3% of the carrying value of the portfolio, respectively.

The investment portfolio totaled $388.1 million at June 30, 2026, compared to $377.6 million at March 31, 2026, and $365.6 million at June 30, 2025. The increase in the investment portfolio from March 31, 2026, was primarily due to purchases outpacing maturities, principal paydowns and sales. Maturities, paydowns and sales totaled $27.6 million during the second quarter of 2026, while purchases totaled $37.7 million. The investment portfolio had an average life of 4.8 years as of June 30, 2026, 4.9 years as of March 31, 2026, and 5.5 years at June 30, 2025.

Net unrealized losses on AFS securities increased to $9.0 million ($6.3 million after-tax) at June 30, 2026, from $8.6 million ($6.1 million after-tax) at March 31, 2026. The increase in the net unrealized loss on the AFS portfolio during the second quarter of 2026 resulted from higher intermediate-term interest rates negatively impacting the value of the securities. Net unrealized losses on AFS securities were $13.8 million ($9.7 million after-tax) at June 30, 2025.

Loans and Asset Quality

Gross loans, net of unaccreted purchase discount and deferred fees and costs, increased $52.1 million, or 2.3%, from March 31, 2026, and increased $161.5 million, or 7.7%, compared to June 30, 2025. Loan growth during the second quarter of 2026 was led by commercial real estate, which grew by $39.6 million. Outstanding loans made to newly established relationships in the second quarter totaled $63.2 million at June 30, 2026. New loan commitments originated during the second quarter were $144.3 million, driven by $72.4 million in new CRE commitments, in addition to $30.3 million in new construction loan commitments.

Nonaccrual loans of $11.4 million accounted for 0.50% of gross loans at June 30, 2026, compared to $10.9 million, or 0.49%, of gross loans at March 31, 2026, and $2.9 million, or 0.14%, of gross loans at June 30, 2025. At June 30, 2026, nonaccrual loans included a $5.8 million hotel relationship, consisting of a $878 thousand conventional CRE loan and a $4.9 million SBA CRE loan. Other non-accrual loans included a $218 thousand CRE loan, as well as $5.4 million of other SBA‑related credits. The $5.4 million of other SBA-related credits included $1.0 million of fully government-guaranteed participation interests previously sold into the secondary market and repurchased as part of a workout during the second quarter of 2026. Government guarantees of $8.3 million reduced net credit exposure to $3.1 million. Accruing loans past due 30-89 days totaled $1.2 million at June 30, 2026, an increase from $836 thousand at March 31, 2026. The balance of accruing loans past due 30-89 days primarily reflects a $1.2 million CRE loan that is well secured by a mixed-use property. There were no loans more than 90 days past due still accruing as of June 30, 2026 or March 31, 2026, and 1.4 million as of June 30, 2025.

The allowance for credit losses on loans (“ACL”) was $35.1 million at June 30, 2026, or 1.55% of total loans, compared to $34.7 million at March 31, 2026, or 1.56% of total loans, and $33.6 million, or 1.59%, at June 30, 2025. The $442 thousand increase in the ACL during the second quarter is primarily attributed to organic loan growth and changes in portfolio mix, which increased the ACL by approximately $877 thousand, as well as higher reserves on certain individually evaluated loans that increased the ACL by approximately $424 thousand. These increases were partially offset by the release of general reserves for certain loans that were transferred from the pooled evaluated portfolio to individual evaluation during the quarter.

The provision for credit losses on loans was $1.4 million for the second quarter of 2026, compared to a $128 thousand reversal of provision for credit losses in the first quarter of 2026. The provision for credit losses on loans was $1.3 million for the first six months of 2026, compared to $1.9 million for the first six months of 2025.

Net charge-offs for the second quarter of 2026 were $944 thousand. Net charge-offs for the quarter were largely attributed to a $912 thousand charge-off on a loan acquired from the merger with 1^st Capital Bancorp. A judicial foreclosure has been initiated against the borrower for collection of the charged-off balance.

The allowance on unfunded credit commitments, recorded in other liabilities, was $2.9 million, or 0.42% of unfunded credit commitments, at June 30, 2026, compared to $2.7 million, or 0.41%, at March 31, 2026. Total unfunded commitments increased by approximately $5.8 million quarter-over-quarter to $681.4 million, while the associated ACL reserve rate remained largely unchanged.

The following table summarizes the Bank’s loan mix as of the dates indicated:

The following table summarizes delinquent and nonperforming loans, net of deferred fees and costs, and purchase discounts as of the dates indicated:

Deposits

Deposits totaled $2.5 billion at June 30, 2026, an increase of $48.4 million, or 2.0%, compared to March 31, 2026, and an increase of $262.6 million, or 11.6%, compared to June 30, 2025. The increase in deposits during the second quarter of 2026 was driven in part by $20 million in new deposits from a public agency that brought a greater share of its relationship to the Bank in advance of establishing a new headquarters in the Monterey region. Additionally, two large depositors in the construction industry contributed $18.9 million in new deposits. New banking relationships established in the second quarter generated $26.3 million in deposits and more than 270 new deposit accounts. Noninterest-bearing deposits to total deposits was 39.7%, 39.8%, and 42.5% at June 30, 2026, March 31, 2026, and June 30, 2025, respectively.

The 10 largest deposit relationships, excluding fully collateralized government agency deposits, represent approximately 13.2% of total deposits as of June 30, 2026. The Bank generally aggregates related depositors with entities and individuals that have the same deposit account signers as one deposit relationship.

The following table summarizes the Bank’s deposit mix:

Shareholders’ Equity

Total shareholders’ equity was $398.5 million at June 30, 2026, a $10.3 million, or 2.6%, increase compared to March 31, 2026, and a $41.6 million, or 11.6%, increase compared to June 30, 2025. The increase during the second quarter of 2026 was primarily due to quarterly earnings of $12.2 million, partially offset by cash dividends declared of approximately $2.5 million.

Share Repurchase Program

On May 6, 2025, Bancorp announced the launch of a new Share Repurchase Program approved by its Board of Directors to repurchase up to $10 million of common stock in the open market or through privately negotiated transactions as market conditions warrant. The stock repurchase program expired on June 30, 2026. Bancorp funded repurchases with dividends from the Bank, as needed, and to execute repurchases in compliance with applicable federal and state securities laws and bank regulations including Rules 10b-18 and 10b5-1 as promulgated under the Securities Exchange Act of 1934. The timing and amount of common stock repurchases made pursuant to the Share Repurchase Program were subject to various factors, including Bancorp’s capital position, liquidity, financial performance, alternative uses of capital, stock trading price, regulatory requirements, Bancorp’s blackout periods and general market conditions. Stock repurchases are accounted for as a reduction in equity. As of June 30, 2026, 198,743 shares had been repurchased at a weighted average share price of $40.92 (excluding commission and fees of $0.04 per share) for a total of $8.1 million (excluding excise taxes of $58 thousand). No stock repurchases occurred during the first six months of 2026.

Non-GAAP Financial Measures

In addition to evaluating Bancorp’s results of operations in accordance with generally accepted accounting principles (“GAAP”) in the United States of America, certain non-GAAP financial measures are widely accepted by the institutional investor community. Non-GAAP measures provide the reader with additional perspectives on operating results, financial condition and performance trends, while facilitating comparisons with the performance of other financial institutions. Disclosing these non-GAAP measures is both useful internally and expected by our investors to understand the overall performance of Bancorp.

Examples of non-GAAP financial measures may include taxable equivalent net interest income, efficiency ratio, tangible common equity to tangible asset ratio and return on average tangible common equity:

• Taxable equivalent net interest income is derived by adding the tax-equivalent benefit from tax-exempt interest-earning loans and tax-exempt investment securities to total interest income and then subtracting total interest expense. The tax-equivalent benefit is derived using the federal statutory income tax rate of 21%. Taxable equivalent net interest margin is derived by dividing taxable equivalent net interest income by total interest-earning assets for the relevant period. Management considers the use of these measures to be beneficial as they allow for comparability of yields on taxable and tax-exempt assets. We believe disclosure of these measures is also consistent with standard practice within the banking industry.
• Efficiency ratio is a common comparable metric used by banks to understand the expense structure relative to total revenue. To improve the comparability of the ratio to our peers and internally across periods, certain non-recurring items may be excluded from time to time and would be noted separately.
• Tangible common equity and tangible book value per common share measures exclude the impact of intangible assets, net of deferred taxes and their related amortization. These financial measures are useful for evaluating the performance of a business consistently.
• Return on average tangible common equity is used by management and readers of our financial statements to understand how efficiently Bancorp is deploying its common equity. Companies that can demonstrate more efficient use of common equity are more likely to be viewed favorably by current and prospective investors. Return on average tangible equity is derived by adding to net income amortization of core deposit intangibles (less the related tax effect) and then dividing the resulting annualized amount by average tangible equity for the period. Average tangible equity is determined by subtracting from average total shareholders’ equity the average balance of intangible assets during the period, which were core deposit intangible assets and goodwill. We believe that disclosure of return on average tangible equity is beneficial as it provides an understanding of the operating results of our core business.

A reconciliation of GAAP to non-GAAP financial measures and other performance ratios used by Bancorp, as adjusted, is presented in the table at the end of this earnings release.

ABOUT WEST COAST COMMUNITY BANK AND WEST COAST COMMUNITY BANCORP

Founded in 2004, West Coast Community Bank is the wholly owned subsidiary of West Coast Community Bancorp, a bank holding company. The Bank is a top-rated, locally operated and full-service community bank headquartered in Santa Cruz, Calif. with branches in Aptos, Capitola, King City, Monterey, Salinas, San Jose, San Luis Obispo, Santa Cruz, Scotts Valley and Watsonville. West Coast Community Bank is distinguished from "big banks" by its relationship-based service, problem-solving focus and direct access to decision makers. The Bank also is an SBA Preferred Lending Partner. As a full-service bank, West Coast Community Bank offers competitive deposit and lending solutions for businesses and individuals; including business loans, lines of credit, commercial real estate financing, construction lending, asset-based lending, agricultural loans, SBA and USDA government guaranteed loans, credit cards, merchant services, remote deposit capture, mobile and online banking, bill payment and treasury management. True to its community roots, West Coast Community Bank has supported regional well-being by actively participating in and donating to local nonprofit organizations. Visit wccb.com for more information.

NATIONAL, STATE AND LOCAL RATINGS AND AWARDS

• Newsweek Magazine: Named one of America's Best Regional Banks and Credit Unions 2026 and 2025.
• S&P Global Market Intelligence Top 100 Community Banks:
  • Ranked #8 among top U.S. community banks under $3B;
  • Ranked #2 among community banks in the West under $10B and
  • Ranked #1 among California community banks under $10B for full-year 2025 financial performance.
• TIME Magazine America's Growth Leaders for 2026: Ranked #330 of 501 in inaugural list of top performing publicly listed companies in the U.S.
• BauerFinancial: Rated 5-star "Superior" for 41 consecutive quarters as of March 31, 2026.
• Bank Director Magazine 2025 RankingBanking Report: Ranked #4 among Top 25 U.S. publicly traded banks and #2 for banks with assets less than $5B (for full-year 2024 performance).
• American Banker Magazine: Ranked #59 among top U.S. community banks with $2-$10B in assets (for full-year 2024 financial performance).
• Bank Performance Report: Ranked #17 for overall performance by California banks for first quarter 2026.
• Silicon Valley Business Journal
  
  • Named a 2026 Top Corporate Philanthropist for 2025 giving.
  • Ranked #14 among Silicon Valley’s 25 largest SBA Lenders by 2025 loan value.
  • Ranked #14 for fastest-growing deposits as of December 31, 2025.
  • Ranked #11 among Top 20 largest Silicon Valley banks by deposits as of June 30, 2025.
  • Ranked #11 among fastest-growing real estate lenders as of March 31, 2025.
  • Ranked #17 among largest corporate philanthropists in Silicon Valley for 2024 giving.
• Santa Cruz Area Chamber of Commerce: Business of the Year 2025, 2022 and 2018.
• Good Times 2026 Best of Santa Cruz County Readers’ Poll: Voted Best Local Bank for the fourteenth consecutive year.
• Santa Cruz Sentinel 2025 Readers’ Choice Award: Voted number one bank in Santa Cruz County for 11 years.
• The Pajaronian 2025 Best of the Pajaro Valley Readers’ Poll: Silver Award for Best Bank.
• The Press Banner 2025 The Best of Scotts Valley Readers’ Poll: Silver Award for Best Local Bank.

Forward-Looking Statements

This release may contain statements that we believe are, or may be considered to be, “forward-looking statements.” Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based on our current beliefs, expectations, or assumptions regarding the future of the business, future plans and strategies, operational results, and other future conditions of the Bancorp. All statements other than statements of historical fact included in this release may constitute forward-looking statements, including statements regarding the prospects of our industry or our prospects, plans, expected operating results, financial position, or business strategy. In addition, forward-looking statements generally can be identified by the use of forward-looking words such as “plans,” “expects” or “does not expect,” “is expected,” “look forward to,” “budget,” “scheduled,” “estimates,” “forecasts,” “will continue,” “intends,” “the intent of,” “have the potential,” “anticipates,” “does not anticipate,” “believes,” “should,” “should not,” “may,” “could,” “would,” “might,” “will,” “be taken,” “occur,” “be achieved,” or the negative of these terms or variations of them or similar terms. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such risks and uncertainties may include but are not necessarily limited to achieving the intended synergies with 1^st Capital Bancorp post-merger, retaining employees and clients, fluctuations in interest rates (including but not limited to changes in depositor behavior and/or impacts on our core deposit intangible in relation thereto), inflation, government regulations and general economic conditions and competition within the business areas in which the Bank and the Bank’s clients are conducting their operations, including the impact of proposed or imposed tariffs or other trade restrictions, labor or supply chain issues, health of the real estate market in California, Bancorp's ability to effectively execute its business plans and other factors beyond Bancorp's and the Bank's control. Therefore, we caution you not to place undue reliance on any forward-looking statements contained herein, which reflect management’s opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements.

Concurrent with this earnings release, Bancorp issued presentation slides providing supplemental information intended to be reviewed together with this release. Slides may be viewed online at: wccb.com/investor_relations.

MEDIA CONTACT

Investor Relations, investorrelations@wccb.com

The following tables present non-GAAP financial measures management believes provide useful information for understanding the operating results of our core business and a better comparison of financial performance. Such measures include taxable equivalent adjustments, adjustments related to the sub debt redemption and tangible common equity and the associated financial measures.