BWCF Bwc Financial

Headline of release dated April 26, 2006 should read: BWC Financial Corp. Announces First Quarter 2006 Earnings (sted ...First Quarter 2005 Earnings). In the SUMMARY BALANCE SHEET, Deposits should read: $431,292 (sted $431,666) and Other Liabilities should read: $4,955 (sted $4,581). The corrected release reads: BWC FINANCIAL CORP. ANNOUNCES FIRST QUARTER 2006 EARNINGS James L. Ryan, Chief Executive Officer and Chairman of the Board of BWC Financial Corp. (Nasdaq:BWCF) and its subsidiaries Bank of Walnut Creek and BWC Mortgage Services, announced First Quarter 2006 income of $2,076,000 or $0.50 diluted earnings per share, compared to First Quarter 2005 income of $1,680,000 or $0.39 diluted earnings per share. Earnings for First Quarter 2006 represent a return on average assets (ROA) of 1.55% and return on average equity (ROE) of 16.24%, compared to a 1.40% ROA and 14.33% ROE for the same period last year. Total assets of the Corporation at March 31, 2006 were $564,239,000 compared to total assets of $521,715,000 at the end of the First Quarter 2005. Additional details may be found in the Summary of Consolidated Financial Results for First Quarter 2006: -0- *T Selected Financial Data -- Summary: The following table provides certain selected consolidated financial data as of and for the three month periods ended March 31, 2006 and 2005. Quarter Ended SUMMARY INCOME STATEMENT March 31, (Unaudited in thousands except share data) 2006 2005 ----------------------- Interest Income (not taxable equivalent) $ 9,995 $ 8,020 Interest Expense 2,498 1,512 ----------------------- Net Interest Income 7,497 6,508 Allowance for Credit Losses - - ----------------------- Net Interest Income after allowance for credit losses 7,497 6,508 Non-interest Income 4,135 3,402 Non-interest Expenses 8,242 7,015 Minority Interest 63 104 ----------------------- Income before income taxes 3,327 2,791 Provision for income taxes 1,251 1,111 ----------------------- Net Income $ 2,076 $ 1,680 Per share: Net Income -- basic $ 0.50 $ 0.40 Net Income -- diluted $ 0.50 $ 0.39 Weighted avg. shares used in Basic E.P.S. calculation 4,128,868 4,228,838 Weighted avg. shares used in Diluted E.P.S. calculation 4,182,253 4,284,146 Cash dividends $ 0.10 $ 0.08 Book value at periodend $ 12.76 $ 11.41 Ending Shares 4,129,029 4,224,705 Financial Ratios: 2006 2005 ----------------------- Return on Average Assets 1.55% 1.40% Return on Average Equity 16.24% 14.33% Net Interest Margin (taxable equivalent yield) 5.89% 5.59% Net loan losses (recoveries) to avg. loans 0.00 (0.00) Efficiency Ratio (Bank only) 57.70% 59.29% SUMMARY BALANCE SHEET In thousands Assets: 2006 2005 ----------------------- Cash and Equivalents $ 23,238 $ 52,268 Investments 102,446 66,250 Loans 424,391 385,377 Allowance for Credit Losses (7,511) (7,694) BWC Mortgage Services Loans Held-for-Sale 5,473 10,899 Other Assets 16,202 14,615 ----------------------- Total Assets $ 564,239 $ 521,715 Deposits $ 431,292 $ 408,926 REPO Sweeps $ 6,309 $ - FHLB Borrowings 63,710 49,778 BWC Mortgage Services Borrowings 5,303 10,695 Other Liabilities 4,955 4,114 ----------------------- Total Liabilities 511,569 473,513 Equity 52,670 48,202 ----------------------- Total Liabilities and Equity $ 564,239 $ 521,715 *T Founded in 1980, Bank of Walnut Creek's headquarters and main office are at 1400 Civic Drive, Walnut Creek. Additional branch offices are in Orinda, San Ramon, Danville, Pleasanton, and Livermore, with a regional commercial banking office in San Jose. BWC Mortgage Services, with headquarters at 3130 Crow Canyon Place in San Ramon, has mortgage consultants in each of the Bank's branch offices and additional offices in Tahoe City, Reno, Concord, Manteca, Redding and Las Vegas. NASDAQ: BWCF www.bowc.com This press release contains forward-looking statements with respect to the financial condition, results of operation and business of Bank A. These include statements that relate to or are dependent on estimates or assumptions relating to the prospects of continued loan and deposit growth, improved credit quality, the operating characteristics of the Company's income tax refund programs and the economic conditions within its markets. These forward-looking statements involve certain risks and uncertainties, many of which are beyond the Company's control. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) increased competitive pressure among financial services companies; (2) changes in the interest rate environment reducing interest margins or increasing interest rate risk; (3) deterioration in general economic conditions, internationally, nationally or in the State of California; (4) the occurrence of future terrorist acts or impact of military actions;and (5) legislative or regulatory changes adversely affecting the business in which Bank A engages. Forward-looking statements speak only as of the date they are made, and Bank A does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.