First Quarter Net Profit of $258,000

Non-Performing Loans decrease 43% quarter-over-quarter and 85% year-over-year

Non-Performing Assets as a percentage of Total Assets down to 0.69%

OREO Assets reduced to $-0-

Tier 1 and Tier 2 Capital Ratios at 5.96% and 12.33%

CalWest Bancorp (OTCBB: CALW), the holding company for South County Bank N.A., today announced the consolidated financial results for the three months ended March 31,2014.

Significant items for the periods ending include:

  • Quarterly net income was $258,000, compared to a year ago net income of $12,000
  • Loans increased 10% quarter-over-quarter, while ALLL ratio remained strong at 4.5%
  • Non-performing loans reduced 43% quarter-over-quarter, with 58% of the non-performing loans paying-as-agreed
  • Total deposits remained steady at $135 million, with 35% non-interest bearing, keeping the Bank’s cost-of-deposits low at 0.39%
  • Non-interest income increased to $337,000 quarter-over-quarter primarily from the positive resolution of the Bank’s only OREO asset
  • The increase in no-interest expenses were associated with resolving the OREO and commissions paid on new business

“Results for the first quarter of FY 2014 were positive on virtually every level,” noted Glenn Gray, President and CEO of CalWest Bancorp and South County Bank. “Our Non-Performing Assets / Total Assets ratio of only 0.69%, down from a high of 7.4%, is a testament to the commitment and efforts put forth by our Credit Administration and Portfolio Management employees. Although the competitive landscape is challenging, our Relationship Managers were able to increase loans by 10% quarter-over-quarter.”

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.

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 Summary                                               UNAUDITED           UNAUDITED At or For the Three Months At or For the Twelve Months Ended March 31,   Ended December 31   2014           2013   % Change     2013           2012   Summary of Operations: (In thousands $) Interest income $ 1,223 $ 1,095 11.7 % $ 4,446 $ 5,213 Interest expense   164     185   -11.4 %   703     862   Net interest income 1,059 910 16.4 % 3,743 4,351 Provision for loan losses   -     -   0.0 %   (500 )   1,981   Net interest income (loss) after provision for loan losses 1,059 910 16.4 % 4,243 2,370 Non-interest income 689 439 56.9 % 1,323 1,400 Non-interest expense   1,490     1,337   11.4 %   5,335     5,858   Income before income taxes 258 12 2050.0 % 231 (2,088 ) Income taxes   -     -   0.0 %   2     2   Net Income (Loss) $ 258   $ 12   2050.0 % $ 229   $ (2,090 )   Per Share Data: (Not in thousands $) Income (Loss) per share - basic $ 0.10 $ 0.00 $ 0.09 $ (0.87 ) Shares outstanding - basic 2,521,488 2,415,530 2,521,488 2,415,530     UNAUDITED UNAUDITED At or For the Three Months At or For the Twelve Months Ended March 31,   Ended December 31   2014     2013   % Change     2013     2012     Balance Sheet Summary: (In thousands $) Cash and Due From $ 7,008 $ 4,691 49.4 % $ 4,721 $ 5,300 Interest Bearing Deposits in other banks 3,581 3,130 14.4 % 3,381 1,980 Investment securities 48,028 48,663 -1.3 % 49,845 60,012 Fed Funds Sold 11,440 23,770 -51.9 % 16,515 12,740 Loans, net of deferred fees 67,922 59,087 15.0 % 61,817 64,843 Allowance for loan losses ("ALL")   (3,063 )   (3,666 ) -16.4 %   (2,949 )   (3,550 ) Net Loans 64,859 55,421 17.0 % 58,868 61,293 Other Real Estate Owned - 472 -100.0 % 984 549 Company Owned Life Insurance 6,220 6,040 3.0 % 6,176 5,994 Federal Reserve Bank and Federal Home Loan Bank Stock 1,067 1,044 2.2 % 1,067 1,104 Other Assets   1,297     1,773   -26.8 %   1,365     1,624   Total assets $ 143,500   $ 145,004   -1.0 % $ 142,922   $ 150,596     Non-Interest Bearing Deposits $ 47,526 $ 47,593 -0.1 % $ 47,503 $ 47,283 Interest Bearing Deposits   88,068     88,614   -0.6 %   87,956     94,153   Total deposits 135,594 136,207 -0.5 % 135,459 141,436 Subordinated Debentures and Notes 3,698 3,723 -0.7 % 3,698 3,723 Accrued Interest and other Liabilities 948 1,084 -12.5 % 1,117 1,180 Total shareholders' equity   3,260     3,990   -18.3 %   2,648     4,257   Total Liabilities and Shareholders Equity $ 143,500   $ 145,004   -1.0 % $ 142,922   $ 150,596     Selected Data (In thousands $) and Ratios: Non-performing Loans $ 990 $ 6,766 -85.4 % $ 1,728 $ 6,888 30 - 120 Days Delinquent Loans $ 55 $ 95 -42.1 % $ - $ 45 Texas Ratio 9.58 % 62.71 % -84.7 % 26.71 % 63.83 % Return on average assets 0.74 % 0.03 % 2132.9 % 0.16 % -1.40 % Return on average shareholders equity 31.66 % 1.20 % 2531.4 % 8.65 % -49.10 % Net interest margin 3.09 % 2.81 % 10.0 % 2.79 % 2.86 % Cost of Deposits 0.39 % 0.42 % -7.1 % 0.39 % 0.45 % ALL to loans ratios 4.51 % 6.20 % -27.3 % 4.77 % 5.47 % Net loans to deposits ratio 52.35 % 46.07 % 13.6 % 47.81 % 48.36 % Bank leverage capital ratio 5.96 % 5.30 % 12.5 % 5.53 % 5.11 % Bank total risk based capital ratio 12.33 % 12.21 % 1.0 % 12.35 % 11.57 % Employees (full time equivalent) (Not in thousands) 38 36 5.6 % 38 34

CalWest BancorpNajam SaiduddinEVP / Chief Financial Officer949-766-3006nsaiduddin@southcountybank.com