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CalWest Bancorp Announces Financial Results as of September 30, 2017

Q3 Net Income of $432,000

Q3 Loans Increased 6.3%

Q3 Deposits Increased 2.3%

Q3 Total Assets Increased 2.4%

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

Significant items for the period include:

  • Total loans increased $7 million during the quarter, reaching $122.5 million
    • $32.9 million or 37% increase year-over-year
    • Allowance for Loan Losses to Gross Loans at 2.07%
  • Total deposits increased $3.5 million during the quarter, reaching $157.9 million
    • $17.3 million or 12% increase year-over-year
    • 42% of deposits are non-interest bearing
  • Net interest income was $1.4 million for the quarter
    • 29% improvement year-over-year
  • Net income was $432,000 for the quarter, and $1.1 million year-to-date
    • 95% improvement year-over-year

“This year’s efforts in reallocating our investment securities into loan production is generating a steady improvement in our Net Interest Income and Net Interest Margin,” noted Glenn Gray, President and CEO of CalWest Bancorp and South County Bank. “With Assets up 12% year-over-year and non-interest expenses down slightly, we are experiencing an 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
9/30/2017 12/31/2016 9/30/2016

Change %

Cash & Due from Banks $ 4,868,613 $ 4,662,975 $ 4,656,848 5 %
Federal Funds Sold and Interest Bearing Balances

26,616,607

19,589,000 18,004,000 48 %
Total Cash and Cash Equivalent 31,485,220 24,251,975 22,660,848 39 %
Investment Securities 17,455,683 36,686,040 38,869,757 -55 %
Loans held for sale - - 1,154,036 -100 %
Real Estate Loans 94,846,061 75,720,645 73,346,823 29 %
Commercial and Industrial Loans 24,048,200 15,620,223 15,597,110 54 %
Consumer Loans 3,467,427 438,198 464,617 646 %
Gross Loans 122,361,688 91,779,066 89,408,550 37 %
Deferred Loan Fees and Discounts 106,068 104,937 49,556 114 %
Loans Net of Def Fees and Discounts 122,467,756 91,884,003 89,458,106 37 %
Allowance for Loan Losses (2,536,356 ) (2,653,860 ) (2,653,861 ) -4 %
Net Loans 119,931,400 89,230,143 86,804,245 38 %
Bank Premises and Equipment 167,259 158,831 168,942 -1 %
Bank Owned Life Insurance 6,100,865 5,982,386 6,692,222 -9 %
Other Assets 871,879 1,605,610 809,798 8 %
Total Assets $ 176,012,306 $ 157,914,985 $ 157,159,848 12 %
LIABILITIES AND CAPITAL End of Period Annual
9/30/2017 12/31/2016 9/30/2016

Change %

Non-Interest Bearing Demand Deposits $ 65,742,369 $ 51,576,857 $ 55,173,446 19 %
Int-Bearing Transaction Accounts 8,733,094 8,446,645 8,645,505 1 %
Savings Deposits 28,307,343 21,021,824 20,667,363 37 %
Money Market Deposits 32,162,389 22,700,574 26,774,496 20 %
Certificate of Deposits 19,503,414 30,705,393 24,393,075 -20 %
Wholesale Brokered Deposits 3,505,640 7,010,806 5,003,000 100 %
Total Deposits 157,954,249 141,462,099 140,656,885 12 %
Subordinated debentures 3,093,000 3,093,000 3,093,000 0 %
Subordinated notes - - - -100 %
Total Deposits and Int-Bearing liabilities 161,047,249 144,555,099 143,749,885 12 %
Other Liabilities 426,867 388,477 313,892 36 %
Total Capital 14,538,190 12,971,409 13,096,071 11 %
Total Liabilities and Capital $ 176,012,306 $ 157,914,985 $ 157,159,848 12 %
CREDIT QUALITY DATA End of Period Annual
(UNAUDITED) 9/30/2017 12/31/2016 9/30/2016

Change %

Non-Accruing Loans $ 118,548 $ 194,224 $ 41,561 185 %
Foreclosed Assets $ - $ - $ - 0 %
Total Nonperforming Assets $ 118,548 $ 194,224 $ 41,561
Nonperforming Loans to Gross Loans 0.10 % 0.21 % 0.05 %

Nonperforming assets to Loans

0.10 % 0.21 % 0.05 %
Allowance for Loan Losses to Gross Loans 2.07 % 2.89 % 2.97 %
CAPITAL RATIOS (SOUTH COUNTY BANK) End of Period
9/30/2017 12/31/2016 9/30/2016
Tier 1 Leverage Ratio 9.93 % 10.27 % 10.07 %
Tier 1 Risk Based Capital Ratio 12.90 % 15.00 % 14.70 %
Total Risk Based Capital Ratio 14.16 % 16.27 % 15.96 %
CalWest Bancorp - Financial Results
CONSOLIDATED INCOME STATEMENT 3-Month Period Ended 9-Month Period Ended
(IN $000, UNAUDITED) 9/30/2017 9/30/2016 % Change 9/30/2017 9/30/2016 % Change
Interest Income $ 1,675 $ 1,267 32 % $ 4,700 $ 3,585 31 %
Interest Expense 233 158 47 % 663 461 44 %
Net Interest Income 1,442 1,109 30 % 4,037 3,124 29 %
Provisions for Loan & Lease Losses (146 ) (155 ) -6 % (323 ) (342 ) -6 %
Net Interest after Loan Loss Provisions 1,588 1,264 26 % 4,360 3,466 26 %
Service Charges 146 124 18 % 437 384 14 %
Bank-Owned Life Insurance Income 39 48 -19 % 127 144 -12 %
Gain (Loss) on Investments (81 ) 123 100 % (160 ) 124 -229 %
Other Non-Interest Income 28 33 -15 % 89 224 -60 %
Total Non-Interest Income 132 328 -60 % 493 876 -44 %
Salaries & Benefits 838 726 15 % 2,411 2,139 13 %
Occupancy Expense 99 100 -1 % 300 293 2 %
Other Non-Interest Expenses 341 396 -14 % 1,017 1,336 -24 %
Total Non-Interest Expense 1,278 1,222 5 % 3,728 3,768 -1 %
Income Before Taxes 442 370 19 % 1,125 574 96 %

Provision for Income Taxes

10 - 0 % 12 2 0 %
Net Income $ 432 $ 370 17 % $ 1,113 $ 572 95 %
PER SHARE DATA 3-Month Period Ended 9-Month Period Ended
(UNAUDITED) 9/30/2017 9/30/2016 % Change 9/30/2017 9/30/2016 % Change
Basic Earnings per Share $ 0.01 $ 0.01 15 % $ 0.02 $ 0.01 91 %
Diluted Earnings per Share $ 0.01 $ 0.01 15 % $ 0.02 $ 0.01 91 %
Common Dividends $ - $ - 0 % $ - $ - 0 %
Weighted Average Shares Outstanding 74,036,505 73,036,215 1 % 74,036,505 72,694,316 2 %
Weighted Average Diluted Shares 74,036,505 73,036,215 1 % 74,036,505 72,694,316 2 %
Book Value per Basic Share (EOP) $ 0.20 $ 0.18 $ 0.20 $ 0.18
Common Shares Outstanding (EOP) 74,036,505 74,019,021 0 % 74,036,505 74,019,021 0 %
3-Month Period Ended 9-Month Period Ended
9/30/2017 9/30/2016 9/30/2017 9/30/2016
KEY FINANCIAL RATIOS
(UNAUDITED)
Return on Average Equity (annualized) 12.03 % 11.60 % 10.78 % 6.23 %
Return on Average Assets (annualized) 0.99 % 0.96 % 0.88 % 0.53 %
Net Interest Margin (Tax-Equivalent) 3.49 % 3.08 % 3.37 % 3.09 %
Efficiency Ratio 81.19 % 85.04 % 82.30 % 94.20 %
Net Charge-offs to Gross Loans -0.05 % -0.17 % -0.17 % -0.38 %

View source version on businesswire.com: http://www.businesswire.com/news/home/20171026006730/en/

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

Source: CalWest Bancorp