CalWest Bancorp Announces Financial Results as of September 30, 2016

Q3 Net Income of $370,000

Year-To-Date Net Income of $572,000

Loans Increase 11.8% Quarterly

Deposits Increase 6.9% Quarterly

Total Assets Increase 6.1% Quarterly

IRVINE, Calif.--()--CalWest Bancorp (OTCBB: CALW), the holding company for South County Bank N.A., today announced the consolidated financial results for the third quarter and nine-months ended September 30, 2016.

Significant items for the period include:

  • Total deposits increased to $141 million, a 9.6% increase year-over-year
    • 39% of deposits are non-interest bearing
  • Total loans increased to $91 million, a 46% increase year-over-year
  • Allowance for Loan Losses to Gross Loans at 2.97%
  • Net interest income was $1.1 million for the quarter and $3.1 million year-to-date
    • 12% improvement year-over-year
  • Net income was $370,000 for the quarter and $572,000 year-to-date
    • 95% improvement year-over-year
  • $605,000 Subordinated Debt fully retired

“During the third quarter we started hitting our stride with a quarterly increase of 6.9% in deposits and 11.8% in loans”, noted Glenn Gray, President and CEO of CalWest Bancorp and South County Bank. “Having crossed an important threshold in loans we are now profitable on a core earnings basis and have started to lower our efficiency ratio. Of particular note at the holding company, was the full retirement of our Subordinated Debentures, which resulted in the issuance of 1,497,533 new CALW common shares.”

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.

 

CalWest Bancorp - Financial Results

 

CONSOLIDATED INCOME STATEMENT

  3-Month Period Ended     9-Month Period Ended

(IN $000'S, UNAUDITED)

9/30/2016   9/30/2015   % Change 9/30/2016   9/30/2015   % Change
 
Interest Income $ 1,267 $ 1,031 23 % $ 3,585 $ 3,260 10 %
Interest Expense   158       154     3 %   461       463     0 %
Net Interest Income 1,109 877 26 % 3,124 2,797 12 %
 
Provisions for Loan & Lease Losses   (155 )     (51 )   204 %   (342 )     (443 )   -23 %
Net Interest after Loan Loss Provisions 1,264 928 36 % 3,466 3,240 7 %
 
Service Charges 124 124 0 % 384 396 -3 %
Bank-Owned Life Insurance Income 48 48 0 % 144 141 2 %
Gain (Loss) on Investments 123 0 100 % 124 116 7 %
Other Non-Interest Income   33       97     -66 %   224       116     93 %
Total Non-Interest Income 328 269 22 % 876 769 14 %
 
Salaries & Benefits 726 653 11 % 2,139 2,076 3 %
Occupancy Expense 100 94 6 % 293 290 1 %
Other Non-Interest Expenses   396       441     -10 %   1,336       1,347     -1 %
Total Non-Interest Expense 1,222 1,188 3 % 3,768 3,713 1 %
 
Income Before Taxes 370 9 4011 % 574 296 94 %

Provision for Income Taxes

  -       -     0 %   2       2     0 %

Net Income

$ 370     $ 9     4011 % $ 572     $ 294     95 %
 
 

PER SHARE DATA

3-Month Period Ended 9-Month Period Ended
(UNAUDITED) 9/30/2016 9/30/2015 % Change 9/30/2016 9/30/2015 % Change
Basic Earnings per Share $ 0.01 $ 0.00 42 % $ 0.01 $ 0.12 -93 %
Diluted Earnings per Share $ 0.01 $ 0.00 42 % $ 0.01 $ 0.12 -93 %
Common Dividends $ - $ - 0 % $ - $ - 0 %
 

Weighted Average Shares Outstanding

73,036,215 2,521,488 2797 % 72,694,316 2,521,488 2783 %
Weighted Average Diluted Shares 73,036,215 2,521,488 2797 % 72,694,316 2,521,488 2783 %
 
Book Value per Basic Share (EOP) $ 0.18 $ 1.87 $ 0.18 $ 1.87
 
Common Shares Outstanding (EOP) 74,019,021 2,521,488 2836 % 74,019,021 2,521,488 2836 %
 
3-Month Period Ended 9-Month Period Ended
9/30/2016 9/30/2015 9/30/2016 9/30/2015

KEY FINANCIAL RATIOS

(UNAUDITED)
Return on Average Equity (annualized) 11.60 % 0.78 % 5.08 % 8.67 %
Return on Average Assets (annualized) 0.96 % 0.03 % 0.53 % 0.29 %
Net Interest Margin (Tax-Equivalent) 3.14 % 3.00 % 3.14 % 2.98 %
Efficiency Ratio 85.04 % 103.66 % 94.20 % 104.12 %
Net Charge-offs to Gross Loans -0.17 % -0.09 % -0.38 % -0.67 %
 
 
STATEMENT OF CONDITION

(UNAUDITED)

 
ASSETS   End of Period   Annual
9/30/2016   12/31/2015 9/30/2015   Change %
Cash & Due from Banks $ 4,656,848 $ 3,265,495 $ 3,848,669 21 %
Federal Funds Sold and Interest Bearing Balances   18,004,000       19,924,000       22,468,000     -20 %
  Total Cash and Cash Equivalent 22,660,848 23,189,495 26,316,669 -14 %
 
Investment Securities 38,869,757 42,926,562 44,658,612 -13 %
 
Loans held for sale 1,154,036 363,451 365,597 216 %
 
Real Estate Loans 73,346,823 47,827,678 43,020,729 70 %
Commercial and Industrial Loans 15,597,110 14,904,960 14,338,361 9 %
Consumer Loans   464,617       570,159       4,167,578     -89 %
Gross Loans 89,408,550 63,302,797 61,526,668 45 %
Deferred Loan Fees and Discounts 49,556 (108,682 ) (105,322 ) -147 %
Loans Net of Def Fees and Discounts 89,458,106 63,194,115 61,421,346 46 %
Allowance for Loan Losses   (2,653,861 )     (2,653,862 )     (2,651,717 )   0 %
Net Loans 86,804,245 60,540,253 58,769,629 48 %
 
Bank Premises and Equipment 168,942 195,755 197,320 -14 %
Bank Owned Life Insurance 6,692,222 6,547,913 6,499,741 3 %
Other Assets   809,798       916,252       1,420,173     -43 %

Total Assets

$ 157,159,848      

134,679,681

    $ 137,862,144     14 %
 
LIABILITIES AND CAPITAL End of Period Annual
9/30/2016 12/31/2015 9/30/2015 Change %
Non-Interest Bearing Demand Deposits $ 55,173,446 $ 46,604,490 $ 52,744,051 5 %
Int-Bearing Transaction Accounts 8,645,505 8,460,599 6,257,940 38 %
Savings Deposits 20,667,363 15,509,732 15,652,168 32 %
Money Market Deposits 26,774,496 23,150,631 28,004,500 -4 %
Certificate of Deposits 24,393,075 24,650,889 25,695,301 -5 %
Wholesale Brokered Deposits   5,003,000       -       -     100 %
Total Deposits 140,656,885 118,376,341 128,353,960 10 %
 
Subordinated debentures 3,093,000 3,093,000 3,093,000 0 %
Subordinated notes   -       605,000       605,000     -100 %
Total Deposits and Int-Bearing liabilities 143,749,885 122,074,341 132,051,960 9 %
 
Other Liabilities 313,892 1,209,470 1,095,107 -71 %
Total Capital   13,096,071       11,395,870       4,715,077     178 %
Total Liabilities and Capital $ 157,159,848    

$

134,679,681

    $ 137,862,144     14 %
 
 
CREDIT QUALITY DATA End of Period Annual

(UNAUDITED)

9/30/2016 12/31/2015 9/30/2015 Change %
 
Non-Accruing Loans $ 41,561 $ 262,086 $ 370,136 -89 %
Foreclosed Assets $ -     $ -     $ -   0 %
Total Nonperforming Assets $ 41,561 $ 262,086 $ 370,136
 
Nonperforming Loans to Gross Loans 0.05 % 0.41 % 0.60 %

Nonperforming assets to Loans

0.05 % 0.41 % 0.60 %
Allowance for Loan Losses to Gross Loans 2.97 % 4.20 % 4.32 %
 
CAPITAL RATIOS (SOUTH COUNTY BANK) End of Period
9/30/2016 12/31/2015 9/30/2015
Tier 1 Leverage Ratio 10.07 % 10.90 % 6.54 %
Tier 1 Risk Based Capital Ratio 14.70 % 20.08 % 12.13 %
Total Risk Based Capital Ratio 15.96 % 21.36 % 13.41 %
 

Contacts

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

Contacts

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