CalWest Bancorp Announces Financial Results as of June 30, 2014
July 25 2014 - 12:47PM
Business Wire
Second Quarter Net Loss of $45,000; YTD Net
Income of $213,000
Non-Performing Loans decrease 23%
quarter-over-quarter and 81% year-over-year
Non-Performing Assets as a percentage of
Total Assets down to 0.54%
OREO Assets remain at $-0-
Tier 1 Leverage Capital and Total Risk Based
Capital Ratios at 5.89% and 12.64%
CalWest Bancorp (OTCBB: CALW), the holding company for South
County Bank N.A., today announced the consolidated financial
results as of June 30, 2014.
Significant items for the period ending include:
- Second quarter net loss was ($45,000),
compared to a year ago net loss of ($71,000)
- Loans decreased 1.5%
quarter-over-quarter, but have increased 18% year-over-year
- ALLL ratio remained strong at
4.31%
- Non-performing loans reduced 23%
quarter-over-quarter, are down to only $759,000, with 48.3% of the
non-performing loans paying-as-agreed
- Total deposits decreased slightly to
$132 million, with 34% non-interest bearing, keeping the Bank’s
cost-of-deposits low at 0.39%
- Non-interest income returned to a more
normal level of $315,000 following the OREO-related gain that
occurred in Q1 2014
- Non-interest expenses decreased
$177,000 or 12% quarter-over-quarter
“We are pleased with the continuing decline in our
Non-Performing Assets which are down to 0.54% of Total Assets from
2.8% a year ago and a historical high of 7.4%,” noted Glenn Gray,
President and CEO of CalWest Bancorp and South County Bank. “With
asset quality under control, excess liquidity, and a low
cost-of-funds of 39 basis points, our primary focus has shifted to
growing our loan portfolio. While we are adding new clients, during
the past quarter we purposely chose not to match some aggressive
refinancing proposals in order to protect our net interest margin
over the longer term. Although this resulted in a $1 million
decrease in our loan portfolio, we believe it is more prudent to
pursue a well-defined strategic plan than to chase loan growth at
unsustainable low pricing.”
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 Six Months Ended June
30,
Ended June 30,
2014 2013 %
Change 2014 2013
Summary of Operations: (In thousands $) Interest
income $ 1,142 $ 1,062 7.5
% $ 2,365 $ 2,157 Interest
expense 187 174
7.5 % 351 359
Net interest income 955 888 7.5
% 2,014 1,798 Provision for loan losses
- - 0.0 %
- - Net interest income
(loss) after provision for loan losses 955 888
7.5 % 2,014 1,798 Non-interest
income 315 348 -9.5 % 1,004
787 Non-interest expense 1,313
1,305 0.6 % 2,803
2,642 Income before income taxes
(43 ) (69 ) -37.7 %
215 (57 ) Income taxes 2
2 0.0 % 2
2 Net Income (Loss) $ (45
) $ (71 ) -36.6 %
$ 213 $ (59 ) Per
Share Data: (Not in thousands $) Income (Loss) per share -
basic $ (0.02 ) $ (0.03
) $ 0.08 $ (0.02 )
Shares outstanding - basic 2,521,488 2,521,488
2,521,488 2,521,488 UNAUDITED At or
For the Six Months Ended June 30,
2014 2013 % Change
Balance Sheet Summary: (In thousands $)
Cash and Due From $ 5,748 $
5,357 7.3 % Interest Bearing Deposits in
other banks 3,580 3,380 5.9 %
Investment securities 45,225 59,483
-24.0 % Fed Funds Sold 13,650
11,450 19.2 % Loans, net of deferred
fees 66,919 56,849 17.7 %
Allowance for loan losses ("ALL") (2,883
) (3,390 ) -15.0 % Net
Loans 64,036 53,459 19.8 % Other
Real Estate Owned - 1,256 -100.0 %
Company Owned Life Insurance 6,266 6,086
3.0 % Federal Reserve Bank and Federal Home Loan
Bank Stock 1,050 1,127 -6.8 %
Other Assets 1,093 2,601
-58.0 % Total assets $
140,648 $ 144,199 -2.5
% Non-Interest Bearing Deposits $
45,066 $ 47,595 -5.3 %
Interest Bearing Deposits 87,128
88,638 -1.7 % Total deposits
132,194 136,233 -3.0 % Subordinated
Debentures and Notes 3,698 3,698 0.0
% Accrued Interest and other Liabilities 1,067
870 22.6 % Total shareholders' equity
3,689 3,398 8.6
% Total Liabilities and Shareholders Equity $
140,648 $ 144,199 -2.5
% Selected Data (In thousands $) and Ratios:
Non-performing Loans $ 759 $
3,967 -80.9 % 30 - 120 Days Delinquent
Loans $ - $ 40 -100.0
% Texas Ratio 7.13 % 48.34
% -85.3 % Return on average assets
-0.13 % -0.20 % -35.1 %
Return on average shareholders equity -4.88 %
-8.36 % -41.6 % Net interest
margin 3.03 % 2.90 % 4.5
% Cost of Deposits 0.39 % 0.40
% -2.5 % ALL to loans ratios
4.31 % 5.96 % -27.8 %
Net loans to deposits ratio 48.44 %
39.24 % 23.4 % Bank leverage capital
ratio 5.89 % 5.34 % 10.3
% Bank total risk based capital ratio 12.64
% 12.39 % 2.0 % Employees
(full time equivalent) (Not in thousands) 37 39
-5.1 %
CalWest BancorpNajam SaiduddinEVP / Chief Financial
Officer949.766.3006nsaiduddin@southcountybank.com