CalWest Bancorp Announces Financial Results as of December 31, 2017

YTD Net Income of $1.55 Million

YTD Loans Increased 45.4%

YTD Deposits Increased 6.2%

YTD Total Assets Increased 6.9%

IRVINE, Calif.--()--CalWest Bancorp (OTCBB: CALW), the holding company for South County Bank N.A., today announced the consolidated financial results for the fourth quarter and year ending December 31, 2017.

“With a 45% increase in loans and a 50 basis points increase in our Net Interest Margin our Core Earnings is steadily improving.”

Significant items for the period include:

  • Total loans increased $41.1 million during the year, reaching $133.0 million
    • 45% increase year-over-year
    • Allowance for Loan Losses to Gross Loans at 1.91%
  • Total deposits increased $8.8 million during the year, reaching $150.3 million
    • 6.2% increase year-over-year
    • 40% of deposits are non-interest bearing
  • Net interest income was $5.6 million for the year
    • 28% improvement year-over-year
  • Net income was $438,000 for the quarter, and $1.55 million year-to-date
    • 29% improvement year-over-year

“The accomplishments achieved over this past year were significant across all performance metrics and position the Bank well for FY 2018,” noted Glenn Gray, President and CEO of CalWest Bancorp and South County Bank. “With a 45% increase in loans and a 50 basis points increase in our Net Interest Margin our Core Earnings is steadily improving.”

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
12/31/2017 12/31/2016

Change %

Cash & Due from Banks $ 3,874,886 $ 4,662,975 -17 %
Federal Funds Sold and Interest Bearing Balances   10,071,813     19,682,000   -49 %
Total Cash and Cash Equivalent 13,946,699 24,344,975 -43 %
 
Investment Securities 15,796,291 35,401,090 -55 %
 
Real Estate Loans 105,093,933 75,720,645 39 %
Commercial and Industrial Loans 24,318,403 15,620,223 56 %
Consumer Loans   3,507,148     438,198   700 %
Gross Loans 132,919,484 91,779,066 45 %
Deferred Loan Fees and Discounts 115,599 (279,378 ) -141 %
Loans Net of Def Fees and Discounts 133,035,083 91,499,688 45 %
Allowance for Loan Losses   (2,536,356 )   (2,653,860 ) -4 %
Net Loans 130,498,727 88,845,828 47 %
 
Federal Reserve Bank, Federal Home Loan Bank,
and Correspondent Bank Stocks - at cost 1,322,650 1,284,950 3 %
Bank Premises and Equipment 162,977 158,831 3 %
Bank Owned Life Insurance 6,140,315 5,982,386 3 %
Other Assets   997,628     1,896,925   -47 %
Total Assets $ 168,865,287   $ 157,914,985   7 %
 
LIABILITIES AND CAPITAL

End of Period

12/31/2017 12/31/2016
Non-Interest Bearing Demand Deposits $ 59,854,482 $ 51,082,241 17 %
Int-Bearing Transaction Accounts 12,345,743 8,446,645 46 %
Savings Deposits 27,099,672 21,021,824 29 %
Money Market Deposits 30,661,385

23,195,190

32 %
Certificate of Deposits 16,795,275 30,705,393 -45 %
Wholesale Brokered Deposits   3,501,202     7,010,806   -50 %
Total Deposits 150,257,759 141,462,099 6 %
 
Subordinated debentures   3,093,000     3,093,000   0 %
Total Deposits and Int-Bearing liabilities 153,350,759 144,555,099 6 %
 
Other Liabilities 552,136 388,477 42 %
Total Capital   14,962,392     12,971,409   15 %
Total Liabilities and Capital $ 168,865,287   $ 157,914,985   7 %
 
 
CREDIT QUALITY DATA End of Period Annual
(UNAUDITED)

12/31/2017

12/31/2016

Change %

 
Non-Accruing Loans $ 115,552 $ 194,224 -41 %
Foreclosed Assets $ -   $ -   0 %
Total Nonperforming Assets $ 115,552 $ 194,224
 
Nonperforming Loans to Gross Loans 0.09 % 0.21 %

Nonperforming assets to Loans

0.09 % 0.21 %
Allowance for Loan Losses to Gross Loans 1.91 % 2.90 %
 
CAPITAL RATIOS (SOUTH COUNTY BANK) End of Period
12/31/2017 12/31/2016
Tier 1 Leverage Ratio 10.15 % 10.27 %
Tier 1 Risk Based Capital Ratio 12.48 % 15.00 %
Total Risk Based Capital Ratio 13.74 % 16.27 %
CONSOLIDATED INCOME STATEMENT     3-Month Period Ended   12-Month Period Ended
(IN $000, UNAUDITED) 12/31/2017 12/31/2016 % Change 12/31/2017 12/31/2016 % Change
 
Interest Income $ 1,787 $ 1,451 23 % $ 6,486 $ 5,036 29 %
Interest Expense   208     176   18 %   871     637   37 %
Net Interest Income 1,579 1,275 24 % 5,615 4,399 28 %
 
Provisions for Loan & Lease Losses   (71 )   (90 ) -21 %   (394 )   (432 ) -9 %
Net Interest after Loan Loss Provisions 1,650 1,365 21 % 6,009 4,831 24 %
 
Service Charges 141 123 15 % 578 507 14 %
Bank-Owned Life Insurance Income 39 404 -90 % 166 548 -70 %
Gain (Loss) on Investments - - 0 % 53 124 -57 %
Other Non-Interest Income   29     29   0 %   118     254   -54 %
Total Non-Interest Income 209 556 -62 % 915 1,433 -36 %
 
Salaries & Benefits 904 775 17 % 3,315 2,914 14 %
Occupancy Expense 101 99 2 % 401 392 2 %
Other Non-Interest Expenses   409     414   -1 %   1,638     1,751   -6 %
Total Non-Interest Expense 1,414 1,288 10 % 5,354 5,057 6 %
 
Income Before Taxes 445 633 -30 % 1,570 1,207 30 %

Provision for Income Taxes

  7     -   100 %   19     2   850 %
Net Income $ 438   $ 633   -31 % $ 1,551   $ 1,205   29 %
 
 
PER SHARE DATA 3-Month Period Ended 12-Month Period Ended
(UNAUDITED) 12/31/2017 12/31/2016 % Change 12/31/2017 12/31/2016 % Change
Basic Earnings per Share $ 0.01 $ 0.01 31 % $ 0.02 $ 0.02 -27 %
Diluted Earnings per Share $ 0.01 $ 0.01 31 % $ 0.02 $ 0.02 -27 %
Common Dividends $ - $ - 0 % $ - $ - 0 %
 
Weighted Average Shares Outstanding 74,036,505 74,036,125 0 % 74,036,505 73,031,601 1 %
Weighted Average Diluted Shares 74,036,505 74,036,125 0 % 74,036,505 73,031,601 1 %
 
Book Value per Basic Share (EOP) $ 0.20 $ 0.18 $ 0.20 $ 0.18
 
Common Shares Outstanding (EOP) 74,036,505 74,036,505 0 % 74,036,505 74,036,505 0 %
 
3-Month Period Ended 12-Month Period Ended
12/31/2017 12/31/2016 12/31/2017 12/31/2016
KEY FINANCIAL RATIOS
(UNAUDITED)
Return on Average Equity (annualized) 11.84 % 19.49 % 11.06 % 9.69 %
Return on Average Assets (annualized) 1.01 % 1.63 % 0.91 % 0.82 %
Net Interest Margin (Tax-Equivalent) 3.65 % 3.29 % 3.53 % 3.03 %
Efficiency Ratio 79.08 % 70.34 % 81.99 % 86.71 %
Net Charge-offs to Gross Loans -0.05 % -0.10 % -0.21 % -0.48 %

Contacts

CalWest Bancorp
Najam Saiduddin
EVP / Chief Financial Officer
949.766.3000
nsaiduddin@southcountybank.com

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