CalWest Bancorp Announces Financial Results as of March 31, 2018

Q1-2018 Net Income of $434,000

Q1-2018 Total Assets Increased 10%

Q1-2018 Deposits Increased 11%

Q1-2018 Loans decreased 2.5%

IRVINE, Calif.--()--CalWest Bancorp (OTCBB: CALW), the holding company for CalWest Bank, (formerly known as South County Bank), today announced the consolidated financial results for the first quarter ended March 31, 2018.

“With an increased focus on deposits, we were very pleased to experience deposits growth of 11%”

Significant items for the period include:

  • Net income was $434,000 for the quarter, compared to $173,000 in Q1-2017
  • Net interest income was $1.5 million for the quarter, a 29% improvement year-over-year
  • Total deposits increased $16.6 million during the quarter, reaching $167 million
    • 11% increase year-over-year
    • 40% of deposits are non-interest bearing
  • Total loans decreased $3.2 million during the quarter, reaching $129.8 million
    • 27% increase year-over-year
    • Allowance for Loan Losses to Gross Loans at 1.9%

“With an increased focus on deposits, we were very pleased to experience deposits growth of 11%,” noted Glenn Gray, President and CEO of CalWest Bancorp and CalWest Bank. “Although loans decreased at quarter-end due to several pay-offs, the higher average loan balance during the quarter contributed to our increases in Net Interest Income and Net Income. The increase in non-performing loans at quarter-end was short-lived, as there was a 95% reduction in early April.”

CalWest Bancorp is the parent company of CalWest 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.

CalWest Bancorp - Financial Results
STATEMENT OF CONDITION
(UNAUDITED)
     
ASSETS End of Period Annual
3/31/2018 3/31/2017

Change %

Cash & Due from Banks $ 4,028,977 $ 4,565,282 -12%
Federal Funds Sold and Interest Bearing Balances   29,868,959       28,224,000     6%
Total Cash and Cash Equivalent 33,897,936 32,789,282 3%
 
Investment Securities 15,719,957 26,082,610 -40%
 
Loans held for sale - 1,301,527 -100%
 
Real Estate Loans 104,647,309 80,803,911 30%
Commercial and Industrial Loans 24,302,263 19,390,325 25%
Consumer Loans   714,137       816,855     -13%
Gross Loans 129,663,709 101,011,091 28%
Deferred Loan Fees and Discounts 114,909 116,636 -1%
Loans Net of Def Fees and Discounts 129,778,618 101,127,727 28%
Allowance for Loan Losses   (2,536,356 )     (2,617,692 )   -3%
Net Loans 127,242,262 98,510,035 29%
 

Federal Reserve Bank, Federal Home Loan Bank, and Correspondent Bank Stocks

1,355,400 1,282,250 6%
Bank Premises and Equipment 294,419 151,729 94%
Bank Owned Life Insurance 6,178,358 6,023,145 3%
Other Assets   1,144,054       821,213     39%
Total Assets $ 185,832,386     $ 166,961,791     11%
 
LIABILITIES AND CAPITAL End of Period
3/31/2018 3/31/2017
Non-Interest Bearing Demand Deposits $ 67,058,719 $ 55,999,760 20%
Int-Bearing Transaction Accounts 10,150,592 8,632,610 18%
Savings Deposits 28,556,618 24,157,283 18%
Money Market Deposits 39,203,798 31,462,185 25%
Certificate of Deposits 18,406,334 24,923,526 -26%
Wholesale Brokered Deposits   3,513,373       5,013,241     100%
Total Deposits 166,889,434 150,188,605 11%
 
Subordinated debentures   3,093,000       3,093,000     0%
Total Deposits and Int-Bearing liabilities 169,982,434 153,281,605 11%
 
Other Liabilities 539,009 335,706 61%
Total Capital   15,310,943       13,344,480     15%
Total Liabilities and Capital $ 185,832,386     $ 166,961,791     11%
 
 
CREDIT QUALITY DATA End of Period Annual
(UNAUDITED) 3/31/2018 3/31/2017

Change %

 
Non-Accruing Loans $ 1,687,761 $ 174,250 869%
Foreclosed Assets $ -     $ -   0%
Total Nonperforming Assets $ 1,687,761 $ 174,250
 
Nonperforming Loans to Gross Loans 1.30 % 0.17 %

Nonperforming assets to Loans

1.30 % 0.17 %
Allowance for Loan Losses to Gross Loans 1.95 % 2.59 %
 
CAPITAL RATIOS (CALWEST BANK) End of Period
3/31/2018 3/31/2017
Tier 1 Leverage Ratio 10.33 % 10.00 %
Tier 1 Risk Based Capital Ratio 12.55 % 13.84 %
Total Risk Based Capital Ratio 13.81 % 15.10 %
 
CONSOLIDATED INCOME STATEMENT   3-Month Period Ended     12-Month Period Ended
(IN $000, UNAUDITED) 3/31/2018   3/31/2017 % Change 12/31/2017   12/31/2016   % Change
 
Interest Income $ 1,767 $ 1,403 26% $ 6,486 $ 5,036 29%
Interest Expense   230       212     8%   871       637     37%
Net Interest Income 1,537 1,191 29% 5,615 4,399 28%
 
Provisions for Loan & Lease Losses   (41 )     (88 )   -53%   (394 )     (432 )   -9%
Net Interest after Loan Loss Provisions 1,578 1,279 23% 6,009 4,831 24%
 
Service Charges 149 124 20% 578 507 14%
Bank-Owned Life Insurance Income 38 49 -22% 166 548 -70%
Gain (Loss) on Investments - - 0% (160 ) 124 -229%
Other Non-Interest Income   130       82     59%   118       254     -54%
Total Non-Interest Income 317 255 24% 702 1,433 -51%
 
Salaries & Benefits 954 823 16% 3,316 2,914 14%
Occupancy Expense 101 100 1% 401 392 2%
Other Non-Interest Expenses   406       438     -7%   1,424       1,751     -19%
Total Non-Interest Expense 1,461 1,361 7% 5,141 5,057 2%
 
Income Before Taxes 434 173 151% 1,570 1,207 30%

Provision for Income Taxes

  -       -     0%   19       2     850%
Net Income $ 434     $ 173     151% $ 1,551     $ 1,205     29%
 
 
PER SHARE DATA

3-Month Period Ended

12-Month Period Ended

(UNAUDITED) 3/31/2018 3/31/2017 12/31/2017 12/31/2016
Basic Earnings per Share $ 0.01 $ 0.00 $ 0.02 $ 0.02
Diluted Earnings per Share $ - $ - $ 0.02 $ 0.02
Common Dividends $ - $ - $ - $ -
 
Weighted Average Shares Outstanding 74,036,505 74,036,505 74,036,505 74,036,505
 
Book Value per Basic Share (EOP) $ 0.21 $ 0.18 $ 0.21 $ 0.18
 
Common Shares Outstanding (EOP) 74,036,505 74,036,505 74,036,505 74,036,505
 
3-Month Period Ended 12-Month Period Ended
3/31/2018 3/31/2017 12/31/2017 12/31/2016
KEY FINANCIAL RATIOS
(UNAUDITED)
Return on Average Equity (annualized) 11.48 % 5.25 % 11.06 % 9.69 %
Return on Average Assets (annualized) 0.97 % 0.42 % 0.91 % 0.82 %
Net Interest Margin (Tax-Equivalent) 3.44 % 2.91 % 3.53 % 3.00 %
Efficiency Ratio 78.80 % 94.12 % 81.38 % 86.71 %
Net Charge-offs to Gross Loans -0.03 % -0.05 % -0.21 % -0.47 %

Contacts

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

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