BWC Financial Corp. Announces 2006 Second Quarter & First Half Earnings
July 18 2006 - 6:04PM
Business Wire
James L. Ryan, Chief Executive Officer and Chairman of the Board of
BWC Financial Corp. (Nasdaq:BWCF) and its subsidiary Bank of Walnut
Creek, announced net income for the six month period ending June
30, 2006. The Corporation reported net income of $4,214,000 or
$1.01 diluted earnings per share for the six months ended June 30,
2006, compared to income of $3,662,000 or $0.86 diluted earnings
per share for the same period in 2005. Earnings for first half 2006
represent 1.52% return on average assets (ROA) and 15.96% return on
average equity (ROE), compared to 1.45% return on average assets
(ROA) and 15.30% return on average equity for first half 2005. For
second quarter 2006, net income was $2,138,000 or $0.51 diluted
earnings per share, compared to net income of $1,982,000 or $0.46
diluted earnings per share for the same period in 2005. Return on
average assets for second quarter 2006 was 1.52% and return on
average equity was 15.92% compared to second quarter 2005 return on
average assets of 1.54% and return on average equity of 16.50%. The
Corporation's second quarter earnings were adversely affected by
expenses of approximately $350,000 related to merger activities. In
conjunction with the proposed merger of Bank of Walnut Creek and
First Republic Bank, BWC Financial Corp. sold its majority interest
in BWC Mortgage to the minority partner, resulting in the
discontinuance of this subsidiary. Total assets of the Corporation
at June 30, 2006 were $569,966,000, compared to total assets of
$551,688,000, at June 30, 2005. 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. Additional details may be found in the
Summary of Consolidated Financial Results for second quarter and
first half 2006: -0- *T Selected Financial Data - Summary: The
following table provides certain selected consolidated financial
data as of and for the three month and six-month periods ended June
30, 2006 and 2005. Quarter Ended Year to Date SUMMARY INCOME
STATEMENT June 30, June 30, ---------- ---------- (Unaudited in
thousands except share data) 2006 2005 2006 2005
-------------------------------- Interest Income $10,551 $ 8,232
$20,258 $15,904 Interest Expense 2,912 1,722 5,332 3,092
-------------------------------- Net Interest Income 7,639 6,510
14,926 12,812 Non-interest Income 594 603 1,154 1,170 Non-interest
Expense 4,819 4,117 9,402 8,300 Income from Continuing Operations
Before Income Taxes 3,414 2,996 6,678 5,682 Income Taxes 1,287
1,159 2,514 2,231 -------------------------------- Net Income from
Continuing Operations $ 2,127 $ 1,837 $ 4,164 $ 3,451 Income from
Operations of Discontinued Subsidiary, net of tax $ 11 $ 145 $ 50 $
211 -------------------------------- Total Net Income $ 2,138 $
1,982 $ 4,214 $ 3,662 ================================ Quarter
Ended Year to Date SUMMARY INCOME STATEMENT June 30, June 30,
---------- ---------- (Unaudited in thousands except share data)
2006 2005 2006 2005 --------------------------------------------
Per share: Basic EPS - Continuing Operations $ 0.51 $ 0.44 $ 1.01 $
0.82 -------------------------------------------- Diluted EPS -
Continuing Operations $ 0.51 $ 0.43 $ 1.00 $ 0.81
-------------------------------------------- Basic EPS -
Discontinued Operations $ 0.00 $ 0.03 $ 0.01 $ 0.05
-------------------------------------------- Diluted EPS -
Discontinued Operations $ 0.00 $ 0.03 $ 0.01 $ 0.05
-------------------------------------------- Weighted Average Basic
shares 4,137,935 4,197,791 4,133,402 4,213,315
-------------------------------------------- Weighted Average
Diluted Shares 4,179,895 4,255,761 4,181,074 4,269,954
-------------------------------------------- Cash dividends $ 0.10
$ 0.08 $ 0.20 $ 0.16 --------------------------------------------
Book value at period-end $ 13.21 $ 11.25
-------------------------------------------- Ending shares
4,152,306 4,309,874 --------------------------------------------
Quarter Ended Year to Date
-------------------------------------------- June 30, June 30,
-------------------------------------------- Financial Ratios: 2006
2005 2006 2005 -------------------------------------------- Return
on Average Assets 1.52% 1.54% 1.52% 1.45%
-------------------------------------------- Return on Average
Equity 15.92% 16.50% 15.96% 15.30%
-------------------------------------------- Net Interest Margin to
Earning Assets 4.44% 5.52% 5.82% 5.56%
-------------------------------------------- Net loan losses
(recoveries) to avg. loans 0.01% 0.06% 0.02% 0.05%
-------------------------------------------- Efficiency Ratio (Bank
only) 54.21% 56.74% 55.90% 58.00%
-------------------------------------------- SUMMARY BALANCE SHEET
-------------------------------------------- (Unaudited in
thousands) June 30, June 30,
-------------------------------------------- Assets: 2006 2005
-------------------------------------------- Cash and Equivalents $
28,992 $ 57,878 --------------------------------------------
Investments 89,891 63,476
-------------------------------------------- Loans 442,634 392,403
-------------------------------------------- Allowance for Credit
Losses (7,428) (7,475) --------------------------------------------
BWC Mortgage Services, Loans Held-for-Sale - 30,027
-------------------------------------------- Other Assets 15,877
15,379 -------------------------------------------- Total Assets $
569,966 $ 551,688 --------------------------------------------
Deposits: $ 422,038 $ 415,478
-------------------------------------------- Other Borrowings
90,705 84,105 -------------------------------------------- Other
Liabilities 2,387 3,606
-------------------------------------------- Total Liabilities
515,130 503,189 -------------------------------------------- Equity
54,836 48,499 -------------------------------------------- Total
Liabilities and Equity $ 569,966 $ 551,688
-------------------------------------------- *T This press release
contains forward-looking statements with respect to the financial
condition, results of operation and business of BWC Financial
Corp.(BWC). 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 BWC engages. Forward-looking statements speak
only as of the date they are made, and BWC does not undertake to
update forward-looking statements to reflect circumstances or
events that occur after the date the forward-looking statements are
made.
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