CalWest Bancorp Announces Financial Results as of September 30, 2014

Third Quarter Net Profit of $108,000; YTD Net Income of $321,000

Non-Performing Loans decrease 53% quarter-over-quarter and 91% year-over-year

Non-Performing Assets as a percentage of Total Assets down to 0.31%

One OREO Asset at $79,000

Tier 1 Leverage Capital and Total Risk Based Capital Ratios at 5.65% and 12.94%

IRVINE, Calif.--()--CalWest Bancorp (OTCBB:CALW), the holding company for South County Bank N.A., today announced the consolidated financial results as of September 30, 2014.

“Our low cost of funds and ample liquidity provide us the ability to grow our loan portfolio, and we must now capitalize on those competitive advantages.”

Significant items for the period ending include:

  • Quarterly net income was $108,000, compared to a year ago net loss of ($149,000)
  • Non-performing loans continued their steady decline to 0.31% of Total Assets, resulting in a Texas Ratio of 4.1%
  • 100% of the non-performing loans are paying-as-agreed
  • Loans have increased 2.4% year-to-date despite a high level of CRE refinancing activity
  • The ALLL ratio remains strong at 4.25%
  • Total deposits remained steady at $133 million, with 35% non-interest bearing, keeping the Bank’s cost-of-deposits low at 0.38%
  • Net interest income, year-to-date, was $2.98 million, a 10% increase compared to the same period last year

“With asset quality under control and a surplus in our ALLL, good quality loan growth at an acceptable net interest margin is our primary focus,” noted Glenn Gray, President and CEO of CalWest Bancorp and South County Bank. “Our low cost of funds and ample liquidity provide us the ability to grow our loan portfolio, and we must now capitalize on those competitive advantages.”

CalWest Bancorp is the parent company of South County Bank, a community bank recognized for its exemplary service to entrepreneurs, high net worth individuals and non-profit organizations located throughout Southern California. The Bank serves the business community through its four branches located in Rancho Santa Margarita, Irvine, Huntington Beach and Redlands.

This release may contain certain forward-looking statements that are based on management's current expectations regarding economic, legislative, and regulatory issues that may impact Bancorp's earnings in future periods. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “intend,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, the economic uncertainty in the United States and abroad, changes in interest rates, deposit flows, real estate values, expected future cash flows on acquired loans, and competition; changes in accounting principles, policies or guidelines; changes in legislation or regulation; and other economic, competitive, governmental, regulatory and technological factors affecting Bancorp's operations, pricing, products and services. Bancorp undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

                             
CalWest Bancorp Financial Summary
UNAUDITED UNAUDITED
At or For the Three Months At or For the Nine Months
Ended September 30,         Ended September 30
2014 2013       % Change 2014 2013
Summary of Operations: (In thousands $)
Interest income $ 1,130 $ 1,082 4.4 % $ 3,495 $ 3,239
Interest expense   161     171         -5.8 %   512     530  
Net interest income 969 911 6.4 % 2,983 2,709
Provision for loan losses   (333 )   -        

0.0

%

  (333 )   -  
Net interest income (loss) after provision for loan losses 1,302 911 42.9 % 3,316 2,709
Non-interest income 216 209 3.3 % 1,220 996
Non-interest expense   1,410     1,269         11.1 %   4,213     3,911  
Income before income taxes 108 (149 ) 172.5 % 323 (206 )
Income taxes   -     -         0.0 %   2     2  
Net Income (Loss) $ 108   $ (149 )       172.5 % $ 321   $ (208 )
 
Per Share Data: (Not in thousands $)
Income (Loss) per share - basic $ 0.04 $ (0.06 ) $ 0.13 $ (0.08 )
Shares outstanding - basic 2,521,488 2,521,488 2,521,488 2,521,488
 
 
UNAUDITED
Ended September 30,        
2014 2013       % Change
 
Balance Sheet Summary: (In thousands $)
Cash and Due From $ 4,242 $ 6,412 -33.8 %
Interest Bearing Deposits in other banks 14,680 3,630 304.4 %
Investment securities 44,464 57,687 -22.9 %
Fed Funds Sold 9,440 12,030 -21.5 %
Loans, net of deferred fees 63,331 62,058 2.1 %
Allowance for loan losses ("ALL")   (2,689 )   (3,440 )       -21.8 %
Net Loans 60,642 58,618 3.5 %
Other Real Estate Owned 79 990 -92.0 %
Company Owned Life Insurance 6,312 6,132 2.9 %
Federal Reserve Bank and Federal Home Loan Bank Stock 1,067 1,128 -5.4 %
Other Assets   528     331         59.5 %
Total assets $ 141,454   $ 146,958         -3.7 %
 
Non-Interest Bearing Deposits $ 46,041 $ 48,927 -5.9 %
Interest Bearing Deposits   86,858     90,460         -4.0 %
Total deposits 132,899 139,387 -4.7 %
Subordinated Debentures and Notes 3,698 3,698 0.0 %
Accrued Interest and other Liabilities 1,096 894 22.6 %
Total shareholders' equity   3,761     2,979         26.3 %
Total Liabilities and Shareholders Equity $ 141,454   $ 146,958         -3.7 %
 
Selected Data (In thousands $) and Ratios:
Non-performing Loans $ 354 $ 3,682 -90.4 %

30-120 Days Delinquent Loans

$ 8 $ 199 -96.0 %
Texas Ratio 4.10 % 45.13 % -90.9 %
Return on average assets 0.29 % -0.19 % -246.8 %
Return on average shareholders equity 11.38 % -9.31 % -222.2 %
Net interest margin 3.17 % 2.77 % 14.4 %
Cost of Deposits 0.38 % 0.40 % -5.0 %
ALL to loans ratios 4.25 % 5.54 % -23.4 %
Net loans to deposits ratio 45.63 % 42.05 % 8.5 %
Bank leverage capital ratio 5.65 % 5.29 % 6.8 %
Bank total risk based capital ratio 12.94 % 12.00 % 7.8 %
Employees (full time equivalent) (Not in thousands) 37 38 -2.6 %
 

Contacts

CalWest Bancorp
Najam Saiduddin
EVP / Chief Financial Officer
949.766.3006
nsaiduddin@southcountybank.com

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