- 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.
CalWest Bancorp Announces Financial Results As Of September 30, 2012
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