CalWest Bancorp (OTCBB: CALW), the holding company for CalWest Bank, (formerly known as South County Bank), today announced the consolidated financial results for the third quarter ended September 30, 2018.
Significant items for the period include:
- Net Interest Income was flat quarter-over-quarter, however up 23% year-over-year
- Non-Interest Income was flat quarter-over-quarter as Deposit Service Charge income decreased
- Non-Interest Expenses increased 16% quarter-over-quarter as a result of staff and location expansions
- Net Income decreased to $282k for the quarter, however YTD Net Income was 9% higher year-over-year
- Total Deposits increased $16 million during the quarter, and have increased YTD by $23.6 million or 16%
- 44% of Deposits are non-interest bearing, keeping our cost-of-deposits within 51 basis points
- Total Loans increased $5.2 million during the quarter and $17.5 million year-over-year
- Non-performing Assets are $23k and all are paying-as-agreed
- Allowance for Loan Losses to Gross Loans ratio was 1.78%
“During the third quarter our Non-Interest Expenses increased due to decisions made to increase our footprint in Orange County and San Diego County and to improve our presence in San Bernardino County. In July we opened a new state-of-art branch in Irvine, in August we opened a Loan Production Office in Laguna Niguel, added a Real Estate/Construction department in North San Diego County, and in August we boosted the presence of our Redlands branch with a new Branch Manager recruited from within that market,” noted Glenn Gray, President and CEO of CalWest Bancorp and CalWest Bank.
“We view the temporarily reduction in Net Income as an investment in our future and it has already been a catalyst for growth in core deposits. Year-over-year, core deposits, which represent 95% of total deposits, have increased by $23 million. This improved composition has allowed us to maintain our cost-of-deposits at 0.51%.”
CalWest Bancorp is the parent company of CalWest Bank, a community bank recognized for its exemplary service to entrepreneurs and high net worth individuals located throughout Southern California. The Bank serves the business community through its four full-service 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 CalWest 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 CalWest Bancorp's operations, pricing, products and services. CalWest 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.
| STATEMENT OF CONDITION | |||||||||||||||||
| (UNAUDITED) | |||||||||||||||||
| ASSETS | End of Period | Annual | |||||||||||||||
| 9/30/2018 | 12/31/2017 | 9/30/2017 | Change % | ||||||||||||||
| Cash & Due from Banks | $ | 4,015,635 | $ | 3,874,886 | $ | 4,868,613 | -18 | % | |||||||||
| Federal Funds Sold and Interest Bearing Balances | 25,516,522 | 8,137,813 | 24,682,607 | 3 | % | ||||||||||||
| Total Cash and Cash Equivalent | 29,532,157 | 12,012,699 | 29,551,220 | 0 | % | ||||||||||||
| Interest Bearing Deposits in Other Banks | 1,934,000 | 1,934,000 | 1,934,000 | ||||||||||||||
| Investment Securities | 15,162,094 | 15,796,291 | 16,164,933 | -6 | % | ||||||||||||
| Real Estate Loans | 112,708,790 | 101,832,736 | 94,846,061 | 19 | % | ||||||||||||
| Commercial and Industrial Loans | 26,031,034 | 24,319,197 | 24,048,200 | 8 | % | ||||||||||||
| Consumer Loans | 1,123,657 | 6,961,330 | 3,467,427 | -68 | % | ||||||||||||
| Gross Loans | 139,863,481 | 133,113,263 | 122,361,688 | 14 | % | ||||||||||||
| Deferred Loan Fees and Discounts | 89,745 | (78,181 | ) | 106,068 | -15 | % | |||||||||||
| Loans Net of Def Fees and Discounts | 139,953,226 | 133,035,082 | 122,467,756 | 14 | % | ||||||||||||
| Allowance for Loan Losses | (2,492,194 | ) | (2,536,356 | ) | (2,536,356 | ) | -2 | % | |||||||||
| Net Loans | 137,461,032 | 130,498,726 | 119,931,400 | 15 | % | ||||||||||||
| Bank Premises and Equipment | 676,564 | 158,831 | 167,259 | 305 | % | ||||||||||||
| Bank Owned Life Insurance | 6,254,866 | 6,140,311 | 6,100,865 | 3 | % | ||||||||||||
| Other Assets | 2,586,720 | 2,324,429 | 2,162,629 | 20 | % | ||||||||||||
| Total Assets | $ | 193,607,433 | $ | 168,865,287 | $ | 176,012,306 | 10 | % | |||||||||
| LIABILITIES AND CAPITAL | End of Period | Annual | |||||||||||||||
| 9/30/2018 | 12/31/2017 | 9/30/2017 | Change % | ||||||||||||||
| Non-Interest Bearing Demand Deposits | $ | 77,070,694 | $ | 60,184,150 | $ | 65,742,369 | 17 | % | |||||||||
| Int-Bearing Transaction Accounts | 8,748,001 | 12,345,743 | 8,733,094 | 0 | % | ||||||||||||
| Savings Deposits | 26,137,603 | 27,099,672 | 28,307,343 | -8 | % | ||||||||||||
| Money Market Deposits | 45,417,751 | 30,331,719 | 32,162,389 | 41 | % | ||||||||||||
| Certificate of Deposits | 14,471,675 | 16,795,275 | 19,503,414 | -26 | % | ||||||||||||
| Wholesale Brokered Deposits | 2,004,830 | 3,501,201 | 3,505,640 | 100 | % | ||||||||||||
| Total Deposits | 173,850,554 | 150,257,760 | 157,954,249 | 10 | % | ||||||||||||
| Subordinated debentures | 3,093,000 | 3,093,000 | 3,093,000 | 0 | % | ||||||||||||
| Total Deposits and Int-Bearing liabilities | 176,943,554 | 153,350,760 | 161,047,249 | 10 | % | ||||||||||||
| Other Liabilities | 607,456 | 552,135 | 426,867 | 42 | % | ||||||||||||
| Total Capital | 16,056,423 | 14,962,392 | 14,538,190 | 10 | % | ||||||||||||
| Total Liabilities and Capital | $ | 193,607,433 | $ | 168,865,287 | $ | 176,012,306 | 10 | % | |||||||||
| CREDIT QUALITY DATA | End of Period | Annual | |||||||||||||||
| (UNAUDITED) | 9/30/2018 | 12/31/2017 | 9/30/2017 | Change % | |||||||||||||
| Non-Accruing Loans | $ | 23,063 | $ | 115,552 | $ | 118,548 | -81 | % | |||||||||
| Foreclosed Assets | $ | - | $ | - | $ | - | 0 | % | |||||||||
| Total Nonperforming Assets | $ | 23,063 | $ | 115,552 | $ | 118,548 | |||||||||||
| Nonperforming Loans to Gross Loans | 0.02 | % | 0.09 | % | 0.10 | % | |||||||||||
| Nonperforming assets to Loans | 0.02 | % | 0.09 | % | 0.10 | % | |||||||||||
| Allowance for Loan Losses to Gross Loans | 1.78 | % | 1.91 | % | 2.07 | % | |||||||||||
| CAPITAL RATIOS (SOUTH COUNTY BANK) | End of Period | ||||||||||||||||
| 9/30/2018 | 12/31/2017 | 9/30/2017 | |||||||||||||||
| Tier 1 Leverage Ratio | 10.31 | % | 10.15 | % | 9.93 | % | |||||||||||
| Tier 1 Risk Based Capital Ratio | 12.40 | % | 12.48 | % | 12.91 | % | |||||||||||
| Total Risk Based Capital Ratio | 13.66 | % | 13.74 | % | 14.16 | % | |||||||||||
| CONSOLIDATED INCOME STATEMENT | 3-Month Period Ended | 9-Month Period Ended | ||||||||||||||||||||||
| (IN $000, UNAUDITED) | 9/30/2018 | 9/30/2017 | % Change | 9/30/2018 | 9/30/2017 | % Change | ||||||||||||||||||
| Interest Income | $ | 1,967 | $ | 1,675 | 17 | % | $ | 5,695 | $ | 4,700 | 21 | % | ||||||||||||
| Interest Expense | 252 | 233 | 8 | % | 719 | 663 | 8 | % | ||||||||||||||||
| Net Interest Income | 1,715 | 1,442 | 19 | % | 4,976 | 4,037 | 23 | % | ||||||||||||||||
| Provisions for Loan & Lease Losses | (50 | ) | (146 | ) | -66 | % | (129 | ) | (323 | ) | -60 | % | ||||||||||||
| Net Interest after Loan Loss Provisions | 1,765 | 1,588 | 11 | % | 5,105 | 4,360 | 17 | % | ||||||||||||||||
| Service Charges | 121 | 146 | -17 | % | 408 | 437 | -7 | % | ||||||||||||||||
| Bank-Owned Life Insurance Income | 38 | 39 | -3 | % | 115 | 127 | -9 | % | ||||||||||||||||
| Gain (Loss) on Investments | - | (81 | ) | 100 | % | - | (160 | ) | -100 | % | ||||||||||||||
| Other Non-Interest Income | 47 | 28 | 68 | % | 207 | 89 | 133 | % | ||||||||||||||||
| Total Non-Interest Income | 206 | 132 | 56 | % | 730 | 493 | 48 | % | ||||||||||||||||
| Salaries & Benefits | 1,106 | 838 | 32 | % | 3,021 | 2,411 | 25 | % | ||||||||||||||||
| Occupancy Expense | 149 | 99 | 51 | % | 366 | 300 | 22 | % | ||||||||||||||||
| Other Non-Interest Expenses | 429 | 341 | 26 | % | 1,213 | 1,017 | 19 | % | ||||||||||||||||
| Total Non-Interest Expense | 1,684 | 1,278 | 32 | % | 4,600 | 3,728 | 23 | % | ||||||||||||||||
| Income Before Taxes | 287 | 442 | -35 | % | 1,235 | 1,125 | 10 | % | ||||||||||||||||
| Provision for Income Taxes | 5 | 10 | 0 | % | 20 | 12 | 0 | % | ||||||||||||||||
| Net Income | $ | 282 | $ | 432 | -35 | % | $ | 1,215 | $ | 1,113 | 9 | % | ||||||||||||
| PER SHARE DATA | 3-Month Period Ended | 9-Month Period Ended | ||||||||||||||||||||||
| (UNAUDITED) | 9/30/2018 | 9/30/2017 | % Change | 9/30/2018 | 9/30/2017 | % Change | ||||||||||||||||||
| Basic Earnings per Share | $ | 0.00 | $ | 0.01 | -35 | % | $ | 0.02 | $ | 0.02 | 9 | % | ||||||||||||
| Diluted Earnings per Share | $ | 0.00 | $ | 0.01 | -35 | % | $ | 0.02 | $ | 0.02 | 9 | % | ||||||||||||
| Common Dividends | $ | - | $ | - | 0 | % | $ | - | $ | - | 0 | % | ||||||||||||
| Weighted Average Shares Outstanding | 74,036,505 | 74,036,505 | 0 | % | 74,036,505 | 74,036,505 | 0 | % | ||||||||||||||||
| Weighted Average Diluted Shares | 74,036,505 | 74,036,505 | 0 | % | 74,036,505 | 74,036,505 | 0 | % | ||||||||||||||||
| Book Value per Basic Share (EOP) | $ | 0.22 | $ | 0.20 | $ | 0.22 | $ | 0.20 | ||||||||||||||||
| Common Shares Outstanding (EOP) | 74,036,505 | 74,036,505 | 0 | % | 74,036,505 | 74,036,505 | 0 | % | ||||||||||||||||
| 3-Month Period Ended | 9-Month Period Ended | |||||||||||||||||||||||
| 9/30/2018 | 9/30/2017 | 9/30/2018 | 9/30/2017 | |||||||||||||||||||||
| KEY FINANCIAL RATIOS | ||||||||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||||||||
| Return on Average Equity (annualized) | 7.06 | % | 12.03 | % | 10.39 | % | 10.78 | % | ||||||||||||||||
| Return on Average Assets (annualized) | 0.60 | % | 0.99 | % | 0.89 | % | 0.88 | % | ||||||||||||||||
| Net Interest Margin (Tax-Equivalent) | 3.83 | % | 3.49 | % | 3.85 | % | 3.37 | % | ||||||||||||||||
| Efficiency Ratio | 87.66 | % | 81.19 | % | 80.62 | % | 82.30 | % | ||||||||||||||||
| Net Charge-offs to Gross Loans | -0.02 | % | -0.05 | % | -0.06 | % | -0.17 | % | ||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20181024005984/en/
Contacts:
Najam Saiduddin
EVP / Chief Financial Officer
949.766.3006
nsaiduddin@calwestbancorp.com
