CalWest Bancorp Announces Financial Results as of June 30, 2012

IRVINE, Calif.--(BUSINESS WIRE)--CalWest Bancorp (OTCBB:CALW), the holding company for South County Bank N.A., today announced the consolidated financial results as of the second quarter 2012. The Company’s year-to-date net income was $169,000. This represents an $863,000 improvement over the net loss of ($694,000) for the same period prior year.

Significant items for the period ending June 30, 2012 include:

The Company's year-to-date net income of $169,000 compares to a net loss of ($694,000) for the same six months ended June 30, 2011, representing an $863,000 improvement over the prior year results
Total assets reached $150.7 million, an increase of 3.5% since FYE 12/31/11
Non-performing loans continue to decline to $5.9 million, or 3.9% of total assets. This compares to $11.4 million, or 6.8% of total assets a year ago; an improvement of 48.3%
Loans past due declined to .04%, an improvement of 2.1% over last year
No additional loan loss provision has been required thus far this year, and the ALLL reserve remains at a healthy 4.8% of total loans
Other Real Estate Owned Assets decreased to $700,000, down from $1.0 million as of June 30, 2011; representing a 31% reduction in OREO assets
The Bank’s Texas Ratio decreased to 47.9%, compared to 90.3% at June 30 2011
Non-interest bearing deposits, which represent 36% of total deposits, increased by 7.7% to $50.5 million from $46.9 million as of June 30, 2011. The Bank’s current and contingent liquidity continues to be strong
The cost of deposits continued to decline, reaching 0.52%, down from 0.72% a year ago, resulting from an increase in core deposits and less reliance on wholesale funding
Non-interest income increased by 31.4% to $913,000 up from $695,000 as of June 30, 2011
Operating expenses decreased 15%, from the same period a year ago
The risk-based capital ratio and the leverage capital ratio both improved to 12.94% and 6.25% respectively, up from 10.57% and 5.54 respectively as of June 30, 2011

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 Six Months
	Ended June 30,						Ended June 30,
	2012			2011			2012			2011
Summary of Operations: (In thousands $)
Interest income	$	1,355		$	1,494		$	2,795		$	3,080
Interest expense		218			311			457			658
Net interest income		1,137			1,183			2,338			2,422
Provision for loan losses		-			-			-			189
Net interest income (loss) after provision for loan losses		1,137			1,183			2,338			2,233
Non-interest income		494			369			913			695
Non-interest expense		1,593			1,828			3,080			3,620
Income before income taxes		38			(276	)		171			(692	)
Preferred Stock Dividends
Income taxes		2			2			2			2
Net income (loss)	$	36		$	(278	)	$	169		$	(694	)

Per Share Data: (Not in thousands $)
Income (Loss) per share - basic	$	0.02		$	(0.12	)	$	0.07		$	(0.29	)
Average shares outstanding - basic		2,415,530			2,413,730			2,415,530			2,413,730

Balance Sheet Summary: (In thousands $)
Total assets	$	150,762		$	167,082		$	150,762		$	167,082
Investment securities	$	62,824		$	47,554		$	62,824		$	47,554
Loans, net of deferred fees	$	74,391		$	88,231		$	74,391		$	88,231
Allowance for loan losses ("ALL")	$	3,591		$	3,952		$	3,591		$	3,952
Total deposits	$	139,494		$	154,783		$	139,494		$	154,783
Total shareholders' equity	$	6,425		$	6,203		$	6,425		$	6,203

Selected Data (In thousands $) and Ratios:
Other Real Estate Owned	$	700		$	1,015		$	700		$	1,015
Non-performing Loans	$	5,892		$	11,388		$	5,892		$	11,388
Delinquent Loans	$	28		$	1,638		$	28		$	1,638
Non-Interest Bearing Deposits	$	50,458		$	46,869		$	50,458		$	46,869
Interest Bearing Deposits	$	89,036		$	107,914		$	89,036		$	107,914
Texas Ratio		47.94	%		90.28	%		47.94	%		90.28	%
Return on average assets		0.09	%		-0.34	%		0.22	%		-0.84	%
Return on average shareholders equity		2.24	%		-8.96	%		5.26	%		-22.38	%
Net interest margin		3.35	%		3.19	%		3.35	%		3.19	%
Cost of Deposits		0.52	%		0.72	%		0.52	%		0.72	%
ALLL to loans ratios		4.83	%		4.48	%		4.83	%		4.48	%
Net loans to deposits ratio		50.75	%		54.45	%		50.75	%		54.45	%
Bank leverage capital ratio		6.25	%		5.54	%		6.25	%		5.54	%
Bank total risk based capital ratio		12.94	%		10.57	%		12.94	%		10.57	%
Employees (full time equivalent) (Not in thousands)		36			39			36			39