CalWest Bancorp Announces Financial Results as of June 30, 2017

Q2 Net Income of $509,000

Q2 Loans Increased 12.5%

Q2 Deposits Increased 2.8%

Q2 Total Assets Increased 2.9%

IRVINE, Calif.--()--CalWest Bancorp (OTCBB: CALW), the holding company for South County Bank N.A., today announced the consolidated financial results for the second quarter and year-to-date period ended June 30, 2017.

“Q2 built upon the momentum we experienced in Q1, with all important performance metrics improving quarter-over-quarter, and year-over-year”

Significant items for the period include:

  • Total loans increased $13 million during the quarter, reaching $115.2 million
    • 42% increase year-over-year
    • Allowance for Loan Losses to Gross Loans at 2.3%
  • Total deposits increased $4.2 million during the quarter, reaching $154 million
    • 17% increase year-over-year
    • 41% of deposits are non-interest bearing
  • Net interest income was $1.4 million for the quarter
    • 29% improvement year-over-year
  • Net income was $509,000 for the quarter, and $681,000 year-to-date
    • 235% improvement year-over-year

“Q2 built upon the momentum we experienced in Q1, with all important performance metrics improving quarter-over-quarter, and year-over-year,” noted Glenn Gray, President and CEO of CalWest Bancorp and South County Bank. “With Assets of $171 million, including Loans of $115 million we are enjoying a steady improvement in our Core Earnings.”

CalWest Bancorp is the parent company of South County Bank, a community bank recognized for its exemplary service to entrepreneurs and high net worth individuals 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.

     
STATEMENT OF CONDITION
(UNAUDITED)
 
ASSETS End of Period Annual
6/30/2017 6/30/2016

Change %

Cash & Due from Banks $ 5,486,261 $ 3,713,574 48%
Federal Funds Sold and Interest Bearing Balances   22,204,000       18,284,000     21%
Total Cash and Cash Equivalent 27,690,261 21,997,574 26%
 
Investment Securities 23,163,631 38,976,347 -41%
 
Loans held for sale 1,280,763 720,880 78%
 
Real Estate Loans 91,267,295 66,367,529 38%
Commercial and Industrial Loans 19,174,235 13,361,619 44%
Consumer Loans   3,375,611       597,354     465%
Gross Loans 113,817,141 80,326,502 42%
Deferred Loan Fees and Discounts 121,106 (9,143 ) -1425%
Loans Net of Def Fees and Discounts 113,938,247 80,317,359 42%
Allowance for Loan Losses   (2,617,193 )     (2,653,861 )   -1%
Net Loans 111,321,054 77,663,498 43%
 

Federal Reserve Bank, Federal Home Loan Bank, and Correspondent Bank Stocks - at cost

1,290,750 1,251,000 3%
Bank Premises and Equipment 143,049 179,285 -20%
Bank Owned Life Insurance 6,061,657 6,643,774 -9%
Other Assets   886,957       709,407     25%
Total Assets $ 171,838,122     $ 148,141,765     16%
 
LIABILITIES AND CAPITAL End of Period
6/30/2017 6/30/2016
Non-Interest Bearing Demand Deposits $ 62,706,085 $ 50,927,500 23%
Int-Bearing Transaction Accounts 8,418,076 9,063,653 -7%
Savings Deposits 25,096,205 18,771,366 34%
Money Market Deposits 31,138,053 26,095,845 19%
Certificate of Deposits 22,565,545 26,701,599 -15%
Wholesale Brokered Deposits   4,523,199       -     100%
Total Deposits 154,447,163 131,559,963 17%
 
Subordinated debentures 3,093,000 3,093,000 0%
Subordinated notes   -       605,000     -100%
Total Deposits and Int-Bearing liabilities 157,540,163 135,257,963 16%
 
Other Liabilities 345,612 727,194 -52%
Total Capital   13,952,347       12,156,608     15%
Total Liabilities and Capital $ 171,838,122     $ 148,141,765     16%
 
 
CREDIT QUALITY DATA End of Period
(UNAUDITED) 6/30/2017 6/30/2016
 
Non-Accruing Loans $ 146,436 $ 42,544
Foreclosed Assets $ -     $ -  
Total Nonperforming Assets $ 146,436 $ 42,544
 
Nonperforming Loans to Gross Loans 0.13 % 0.05 %

Nonperforming assets to Loans

0.13 % 0.05 %
Allowance for Loan Losses to Gross Loans 2.30 % 3.30 %
 
CAPITAL RATIOS (SOUTH COUNTY BANK) End of Period
6/30/2017 6/30/2016
Tier 1 Leverage Ratio 10.05 % 10.58 %
Tier 1 Risk Based Capital Ratio 13.28 % 16.19 %
Total Risk Based Capital Ratio 14.54 % 17.46 %
 
 
CalWest Bancorp - Financial Results
               
CONSOLIDATED INCOME STATEMENT 3-Month Period Ended 6-Month Period Ended
(IN $000, UNAUDITED) 6/30/2017 6/30/2016 % Change 6/30/2017 6/30/2016 % Change
 
Interest Income $ 1,622 $ 1,157 40 % $ 3,025 $ 2,318 31 %
Interest Expense   219       152     44 %   430       303     42 %
Net Interest Income 1,403 1,005 40 % 2,595 2,015 29 %
 
Provisions for Loan & Lease Losses   (89 )     (81 )   10 %   (177 )     (186 )   -5 %
Net Interest after Loan Loss Provisions 1,492 1,086 37 % 2,772 2,201 26 %
 
Service Charges 167 135 24 % 291 260 12 %
Bank-Owned Life Insurance Income 39 48 -19 % 87 96 -9 %
Gain (Loss) on Investments - 117 0 % (79 ) 120 -166 %
Other Non-Interest Income   33       33     0 %   62       68     -9 %
Total Non-Interest Income 239 333 -28 % 361 544 -34 %
 
Salaries & Benefits 750 732 2 % 1,573 1,412 11 %
Occupancy Expense 102 98 4 % 201 193 4 %
Other Non-Interest Expenses   368       488     -25 %   676       935     -28 %
Total Non-Interest Expense 1,220 1,318 -7 % 2,450 2,540 -4 %
 
Income Before Taxes 511 101 406 % 683 205 -233 %

Provision for Income Taxes

  2       2     0 %   2       2     0 %
Net Income $ 509     $ 99     414 % $ 681     $ 203     -235 %
 
 
PER SHARE DATA 3-Month Period Ended 6-Month Period Ended
(UNAUDITED) 6/30/2017 6/30/2016 % Change 6/30/2017 6/30/2016 % Change
Basic Earnings per Share $ 0.01 $ 0.00 -404 % $ 0.01 $ 0.00 -229 %
Diluted Earnings per Share $ 0.01 $ 0.00 -404 % $ 0.01 $ 0.00 -229 %
Common Dividends $ - $ - 0 % $ - $ - 0 %
 
Weighted Average Shares Outstanding 74,036,505 72,521,488 2 % 74,036,505 72,521,488 2 %
Weighted Average Diluted Shares 74,036,505 72,521,488 2 % 74,036,505 72,521,488 2 %
 
Book Value per Basic Share (EOP) $ 0.19 $ 0.17 $ 0.19 $ 0.17
 
Common Shares Outstanding (EOP) 74,036,505 72,521,488 2 % 74,036,505 72,521,488 2 %
 
3-Month Period Ended 6-Month Period Ended
6/30/2017 6/30/2016 6/30/2017 6/30/2016
KEY FINANCIAL RATIOS
(UNAUDITED)
Return on Average Equity (annualized) 14.82 % 3.30 % 10.12 % 3.39 %
Return on Average Assets (annualized) 1.21 % 0.28 % 0.82 % 0.29 %
Net Interest Margin (Tax-Equivalent) 3.35 % 2.80 % 3.26 % 2.93 %
Efficiency Ratio 74.30 % 98.51 % 82.88 % 99.26 %
Net Charge-offs to Gross Loans -0.08 % -0.08 % -0.12 % -0.23 %

Contacts

CalWest Bancorp
Najam Saiduddin
EVP / Chief Financial Officer
949-766-3006
nsaiduddin@southcountybank.com

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