IRVINE, Calif.--()--CalWest Bancorp (OTCBB: CALW), the holding company for South County Bank N.A., today announced the consolidated financial results as of the third quarter 2012. Year-to-date, the Company has recorded a net loss of ($588,000); which compares to a net loss of ($394,000) for the same period prior year.
“While we are obviously disappointed in the temporary reversal of our positive trends, the Bank remains on-course with respect to working through its non-performing loans, maintaining a high degree of liquidity and originating new loans”
Significant items for the period ending September 30, 2012 include:
- A loan loss provision of $850,000, relating to one $2.6 million loan, was recorded in September, 2012. The loan had been paying as-agreed since origination in 2007, until payments abruptly ended. While negotiations are underway to restructure the repayment of the loan, it was prudent to record the provision based on the deterioration of the commercial real estate collateral. At quarter-end, the Bank’s total allowance for loan losses reached 6.36% of total average loans.
- Total assets reached $151.6 million, an increase of 4% since December 31, 2011.
- Non-performing loans reversed its previous positive trend and increased to $9.1 million, or 6% of total assets, largely the result of the loan noted above that caused the loan loss provision in the quarter. The level of non-performing loans still compares favorably to the $9.4 million in non-performing loans a year ago.
- Loans past-due remain low at 0.01% of total performing loans, an improvement from 0.84% at the beginning of the year.
- Other Real Estate Owned Assets remained at $700,000, down from $1.0 million as of September 30, 2011; representing a 31.0% reduction in OREO assets.
- Total deposits have increased $7.2 million since the beginning of the year, with non-interest bearing deposits remaining at 34.5% of total deposits. The Bank’s current and contingent liquidity continues to be strong.
- The cost of deposits continued to decline, reaching 0.46%, down from 0.67% a year ago, resulting from an increase in core deposits and less reliance on wholesale funding.
- Non-interest income increased slightly to $1.5 million up from $1.4 million as of September 30, 2011.
- Operating expenses decreased 13%, from the same period a year ago.
- The total risk-based capital ratio and the leverage capital ratio ended the quarter at 12.84% and 6.00% respectively, up from 12.16% and 5.98% respectively as of September 30, 2011. Despite the large loan loss provision the leverage capital ratio only decreased 25 basis points compared to the previous quarter-end.
“While we are obviously disappointed in the temporary reversal of our positive trends, the Bank remains on-course with respect to working through its non-performing loans, maintaining a high degree of liquidity and originating new loans,” said the Bank’s newly appointed CEO, Glenn Gray. He further noted, “The prolonged effects from the economic recession along with significant reductions in real estate values continue to create a cautious attitude amongst business owners, however we are finding new quality opportunities to grow the bank organically. As a result, the bank will be expanding its team of Relationship Managers as we approach next year.”
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.
Forward Looking Comments: The statements contained in this release that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on the Bank. There can be no assurance that future developments affecting the Bank will be those anticipated by management. Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties.
| CalWest Bancorp Financial Summary | |||||||||||||||||
| UNAUDITED | UNAUDITED | ||||||||||||||||
| At or For the Three Months | At or For the Nine Months | ||||||||||||||||
| Ended September 30, | Ended September 30, | ||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||||||
| Summary of Operations: (In thousands $) | |||||||||||||||||
| Interest income | $ | 1,190 | $ | 1,455 | $ | 3,985 | $ | 4,535 | |||||||||
| Interest expense | 207 | 289 | 664 | 947 | |||||||||||||
| Net interest income | 983 | 1,166 | 3,321 | 3,588 | |||||||||||||
| Provision for loan losses | 850 | - | 850 | 189 | |||||||||||||
| Net interest income (loss) after provision for loan losses | 133 | 1,166 | 2,471 | 3,399 | |||||||||||||
| Non-interest income | 615 | 770 | 1,528 | 1,465 | |||||||||||||
| Non-interest expense | 1,505 | 1,636 | 4,585 | 5,256 | |||||||||||||
| Income before income taxes | (757 | ) | 300 | (586 | ) | (392 | ) | ||||||||||
| Income taxes | - | - | 2 | 2 | |||||||||||||
| Net income (loss) | $ | (757 | ) | $ | 300 | $ | (588 | ) | $ | (394 | ) | ||||||
| Per Share Data: (Not in thousands $) | |||||||||||||||||
| Income (Loss) per share - basic | $ | (0.31 | ) | $ | 0.12 | $ | (0.24 | ) | $ | (0.16 | ) | ||||||
| Average shares outstanding - basic | 2,415,530 | 2,413,730 | 2,415,530 | 2,413,730 | |||||||||||||
| Balance Sheet Summary: (In thousands $) | |||||||||||||||||
| Total assets | $ | 151,591 | $ | 154,381 | $ | 151,591 | $ | 154,381 | |||||||||
| Cash and Due From | $ | 6,339 | $ | 5,334 | $ | 6,339 | $ | 5,334 | |||||||||
| Investment securities | $ | 52,242 | $ | 42,748 | $ | 52,242 | $ | 42,748 | |||||||||
| Fed Funds Sold | $ | 17,740 | $ | 21,410 | $ | 17,740 | $ | 21,410 | |||||||||
| Loans, net of deferred fees | $ | 70,288 | $ | 79,196 | $ | 70,288 | $ | 79,196 | |||||||||
| Allowance for loan losses ("ALL") | $ | 4,470 | $ | 3,916 | $ | 4,470 | $ | 3,916 | |||||||||
| Other Real Estate Owned | $ | 700 | $ | 1,015 | $ | 700 | $ | 1,015 | |||||||||
| Non-Interest Bearing Deposits | $ | 48,694 | $ | 48,841 | $ | 48,694 | $ | 48,841 | |||||||||
| Interest Bearing Deposits | $ | 92,289 | $ | 93,947 | $ | 92,289 | $ | 93,947 | |||||||||
| Total deposits | $ | 140,983 | $ | 142,788 | $ | 140,983 | $ | 142,788 | |||||||||
| Total shareholders' equity | $ | 5,666 | $ | 6,325 | $ | 5,666 | $ | 6,325 | |||||||||
| Selected Data (In thousands $) and Ratios: | |||||||||||||||||
| Non-performing Loans | $ | 9,062 | $ | 9,383 | $ | 9,062 | $ | 9,383 | |||||||||
| 30 - 120 Days Delinquent Loans | $ | 69 | $ | 68 | $ | 69 | $ | 68 | |||||||||
| Texas Ratio | 70.03 | % | 75.18 | % | 70.03 | % | 75.18 | % | |||||||||
| Return on average assets | -2.00 | % | 0.38 | % | -0.78 | % | -0.50 | % | |||||||||
| Return on average shareholders equity | -53.44 | % | 9.49 | % | -20.76 | % | -12.46 | % | |||||||||
| Net interest margin | 2.98 | % | 3.00 | % | 2.98 | % | 3.00 | % | |||||||||
| Cost of Deposits | 0.46 | % | 0.67 | % | 0.46 | % | 0.67 | % | |||||||||
|
ALL to loans ratios |
6.36 | % | 4.94 | % | 6.36 | % | 4.94 | % | |||||||||
| Net loans to deposits ratio | 46.69 | % | 52.72 | % | 46.69 | % | 52.72 | % | |||||||||
| Bank leverage capital ratio | 6.00 | % | 5.98 | % | 6.00 | % | 5.98 | % | |||||||||
| Bank total risk based capital ratio | 12.84 | % | 12.16 | % | 12.84 | % | 12.16 | % | |||||||||
| Employees (full time equivalent) (Not in thousands) | 34 | 38 | 34 | 38 | |||||||||||||
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