CalWest Bancorp Announces Financial Results As Of June 30, 2013

CalWest Bancorp (OTCBB: CALW), the holding company for South County Bank N.A., today announced the consolidated financial results for the six months ended June 30, 2013. Significant items for the period ending June 30, 2013 include:
  • Quarterly net income of $50,000, compared to the previous quarter profit of $12,000
  • No additional loan loss provision required; resulting in the allowance for loan loss (ALL) ratio decreasing slightly from 6.20% to 5.95%
  • Total assets were flat at $144 million, with new business offsetting run-off
  • Non-performing loans reduced significantly in 2013 by 41% quarter-over-quarter; and are down $1.9 million from a year ago
  • Non-interest bearing deposits maintained at 35% of total deposits, helping reduce the Bank’s cost-of-deposits to 0.40% from 0.48% a year ago
  • The increase in Net Interest Income offset the reduction in Non-Interest Income as increased focus is placed on core earnings
  • Non-interest expenses continue to improve, decreasing 2% quarter-over-quarter

“Our efforts as it relates to reducing non-performing assets and operating expenses, while improving core earnings began to reflect more positively in our results this past quarter,” noted Glenn Gray, CEO and President of CalWest Bancorp and South County Bank. “The single problem loan that interrupted our progress during the second half of last year has transitioned to other real estate owned where it can be dealt with more effectively, and many classified loans, which have been consistently paying-as-agreed, are starting to demonstrate sustained earnings. With a full complement of Relationship Managers and a re-staffed Credit Administration team, the Bank is focusing on expanding its Balance Sheet while continuing to actively manage its shrinking non-performing loan portfolio.”

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,
  2013           2012     2013           2012  
Summary of Operations: (In thousands $)
Interest income $ 1,183 $ 1,355 $ 2,278 $ 2,795
Interest expense   174     218     359     457  
Net interest income 1,009 1,137 1,919 2,338
Provision for loan losses   -     -     -     -  
Net interest income (loss) after provision for loan losses 1,009 1,137 1,919 2,338
Non-interest income 348 494 787 913
Non-interest expense   1,305     1,593     2,642     3,080  
Income before income taxes 52 38 64 171
Income taxes   2     2     2     2  
Net Income (Loss) $ 50   $ 36   $ 62   $ 169  
 
Per Share Data: (Not in thousands $)
Income (Loss) per share - basic $ 0.02 $ 0.01 $ 0.02 $ 0.07
Shares outstanding - basic 2,521,488 2,415,530 2,521,488 2,415,530
 
Balance Sheet Summary: (In thousands $)
Total assets $ 144,320 $ 150,763 $ 144,320 $ 150,763
Cash and Due From $ 5,357 $ 3,620 $ 5,357 $ 3,620
Investment securities $ 62,863 $ 62,824 $ 62,863 $ 62,824
Fed Funds Sold $ 11,450 $ 3,960 $ 11,450 $ 3,960
Loans, net of deferred fees $ 56,970 $ 74,391 $ 56,970 $ 74,391
Allowance for loan losses ("ALL") $ 3,390 $ 3,591 $ 3,390 $ 3,591
Other Real Estate Owned $ 1,256 $ 700 $ 1,256 $ 700
Non-Interest Bearing Deposits $ 47,595 $ 50,459 $ 47,595 $ 50,459
Interest Bearing Deposits $ 88,638 $ 89,036 $ 88,638 $ 89,036
Total deposits $ 136,233 $ 139,495 $ 136,233 $ 139,495
Subordinated Debentures and Notes $ 3,698 $ 3,723 $ 3,698 $ 3,723
Total shareholders' equity $ 3,519 $ 6,026 $ 3,519 $ 6,026
 
Selected Data (In thousands $) and Ratios:
Non-performing Loans $ 3,967 $ 5,892 $ 3,967 $ 5,892
30 - 120 Days Delinquent Loans $ 40 $ 13 $ 40 $ 13
Bank Texas Ratio 48.34 % 47.94 % 48.34 % 47.94 %
Return on average assets 0.14 % 0.09 % 0.09 % 0.11 %
Return on average shareholders equity 5.68 % 2.39 % 3.52 % 2.80 %
Net interest margin 2.90 % 3.02 % 2.90 % 3.02 %
Cost of Deposits 0.40 % 0.48 % 0.40 % 0.48 %
ALL to loans ratios 5.95 % 4.83 % 5.95 % 4.83 %
Net loans to deposits ratio 39.33 % 50.75 % 39.33 % 50.75 %
Bank leverage capital ratio 5.42 % 6.25 % 5.42 % 6.25 %
Bank total risk based capital ratio 12.55 % 12.96 % 12.55 % 12.96 %
Employees (full time equivalent) (Not in thousands) 39 36 39 36

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