CalWest Bancorp (OTCBB: CALW), the holding company for South County Bank N.A., today announced the consolidated financial results for the fourth quarter and the fiscal year ended December 31, 2016.

Significant items for the quarterly and annual periods include:

  • Total loans increased $1.9 million during the quarter, reaching $91.4 million
    • 44% increase year-over-year
    • Allowance for Loan Losses to Gross Loans at 2.9%
  • Total deposits increased $805,000 during the quarter, reaching $141 million
    • 20% increase year-over-year
    • 36% of deposits are non-interest bearing
  • Net interest income was $1.3 million for the quarter and $4.4 million for the year
    • 21% improvement year-over-year
    • Net interest margin improved to 3.30%
  • Net income was $633,000 for the quarter and $1.2 million for the year, compared to a loss of ($724,000) in 2015

“Our momentum continued into the fourth quarter with loans, deposits, total assets, net interest income and net income all improving quarter-over-quarter,” noted Glenn Gray, President and CEO of CalWest Bancorp and South County Bank. “We completed the year exceeding all of our goals, became profitable on a core earnings basis and improved our fourth-quarter expense to revenue (efficiency) ratio to 70%.”

CalWest Bancorp is the parent company of South County 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 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.

           
STATEMENT OF CONDITION
(UNAUDITED)
 
ASSETS End of Period Annual
12/31/2016 12/31/2015

Change %

Cash & Due from Banks $ 4,662,975 $ 3,265,495 43 %
Federal Funds Sold and Interest Bearing Balances   19,682,000         19,924,000       -1 %
Total Cash and Cash Equivalent 24,344,975 23,189,495 5 %
 
Investment Securities 35,401,090 41,832,762 -15 %
 
Loans held for sale 1,305,356 363,451 259 %
 
Real Estate Loans 73,825,077 47,827,678 54 %
Commercial and Industrial Loans 15,909,298 14,904,960 7 %
Consumer Loans   355,020         570,159       -38 %
Gross Loans 90,089,395 63,302,797 42 %
Deferred Loan Fees and Discounts 104,937 (108,682 ) -197 %
Loans Net of Def Fees and Discounts 90,194,332 63,194,115 43 %
Allowance for Loan Losses   (2,653,860 )       (2,653,862 )     0 %
Net Loans 87,540,472 60,540,253 45 %
 

Federal Reserve Bank, Federal Home Loan Bank, and Correspondent Bank Stocks - at cost

1,284,950 1,093,800 17 %
Bank Premises and Equipment 158,831 195,755 -19 %
Bank Owned Life Insurance 5,982,386 6,547,913 -9 %
Other Assets   1,896,925         916,252       107 %
Total Assets

$

157,914,985

      

$

134,679,681

       17 %
 
LIABILITIES AND CAPITAL End of Period
12/31/2016 12/31/2015
Non-Interest Bearing Demand Deposits $ 51,082,241

$

46,604,490

10 %
Int-Bearing Transaction Accounts 8,446,645 8,460,599 0 %
Savings Deposits 21,021,824 15,509,732 36 %
Money Market Deposits 23,195,190 23,150,631 0 %
Certificate of Deposits 30,705,393 24,650,889 25 %
Wholesale Brokered Deposits   7,010,806         -       100 %
Total Deposits 141,462,099 118,376,341 20 %
 
Subordinated debentures 3,093,000 3,093,000 0 %
Subordinated notes   -         605,000       -100 %
Total Deposits and Int-Bearing liabilities 144,555,099 122,074,341 18 %
 
Other Liabilities 388,477 1,209,470 -68 %
Total Capital   12,971,409         11,395,870       14 %
Total Liabilities and Capital

$

157,914,985

      

$

134,679,681

       17 %
 
 
CREDIT QUALITY DATA End of Period Annual
(UNAUDITED) 12/31/2016 12/31/2015

Change %

 
Non-Accruing Loans $ 194,224 $ 262,086 -26 %
Foreclosed Assets $ -       $ -   0 %
Total Nonperforming Assets $ 194,224 $ 262,086
 
Nonperforming Loans to Gross Loans 0.22 % 0.41 %

Nonperforming assets to Loans

0.22 % 0.41 %
Allowance for Loan Losses to Gross Loans 2.94 % 4.20 %
 
CAPITAL RATIOS (SOUTH COUNTY BANK) End of Period
12/31/2016 12/31/2015
Tier 1 Leverage Ratio 10.27 % 10.90 %
Tier 1 Risk Based Capital Ratio 15.00 % 20.08 %
Total Risk Based Capital Ratio 16.27 % 21.36 %
 
           
CONSOLIDATED INCOME STATEMENT 3-Month Period Ended 12-Month Period Ended
(IN $000, UNAUDITED) 12/31/2016     12/31/2015 % Change 12/31/2016     12/31/2015     % Change
 
Interest Income $ 1,451 $ 1,031 41 % $ 5,036 $ 4,291 17 %
Interest Expense   176         188       -6 %   637         651       -2 %
Net Interest Income 1,275 843 51 % 4,399 3,640 21 %
 
Provisions for Loan & Lease Losses   (90 )       (120 )     -25 %   (432 )       (562 )     -23 %
Net Interest after Loan Loss Provisions 1,365 963 42 % 4,831 4,202 15 %
 
Service Charges 123 132 -7 % 507 528 -4 %
Bank-Owned Life Insurance Income 404 48 742 % 548 189 190 %
Gain (Loss) on Investments - - 0 % 124 116 7 %
Other Non-Interest Income   29         40       -28 %   254         156       63 %
Total Non-Interest Income 556 220 153 % 1,433 989 45 %
 
Salaries & Benefits 775 679 14 % 2,914 2,756 6 %
Occupancy Expense 99 94 5 % 392 384 2 %
Other Non-Interest Expenses   414         1,428       -71 %   1,751         2,773       -37 %
Total Non-Interest Expense 1,288 2,201 -41 % 5,057 5,913 -14 %
 
Income Before Taxes 633 (1,018 ) 162 % 1,207 (722 ) 267 %

Provision for Income Taxes

  -         -       0 %   2         2       0 %
Net Income $ 633       $ (1,018 )     162 % $ 1,205       $ (724 )     266 %
 
 
PER SHARE DATA 3-Month Period Ended 12-Month Period Ended
(UNAUDITED) 12/31/2016 12/31/2015 % Change 12/31/2016 12/31/2015 % Change
Basic Earnings per Share $ 0.01 $ (0.11 ) 108 % $ 0.02 $ (0.17 ) 110 %
Diluted Earnings per Share $ 0.01 $ (0.11 ) 108 % $ 0.02 $ (0.17 ) 110 %
Common Dividends $ - $ - 0 % $ - $ - 0 %
 
Weighted Average Shares Outstanding 74,036,125 9,369,314 690 % 73,031,604 4,247,515 1619 %
Weighted Average Diluted Shares 74,036,125 9,369,314 690 % 73,031,604 4,247,515 1619 %
 
Book Value per Basic Share (EOP) $ 0.18 $ 0.16 $ 0.18 $ 0.16
 
Common Shares Outstanding (EOP) 74,036,505 72,521,488 2 % 74,036,505 72,521,488 2 %
 
3-Month Period Ended 12-Month Period Ended
12/31/2016 12/31/2015 12/31/2016 12/31/2015
KEY FINANCIAL RATIOS
(UNAUDITED)
Return on Average Equity (annualized) 17.22 % -46.60 % 8.07 % -8.51 %
Return on Average Assets (annualized) 1.64 % -3.02 % 0.83 % -0.54 %
Net Interest Margin (Tax-Equivalent) 3.30 % 2.50 % 3.03 % 2.91 %
Efficiency Ratio 70.34 % 207.06 % 86.71 % 127.74 %
Net Charge-offs to Gross Loans -0.10 % -0.19 % -0.48 % -0.85 %
 
 
 
AVERAGE EQUITY $ 14,706,755 $ 8,738,334 $ 14,931,535 $ 8,507,971
AVERAGE ASSETS $ 154,711,702 $ 134,641,597

$

145,669,633

$ 134,619,288
RECOVERIES $ 89,654 $ 119,697 $ 434,039 $ 590,581
CHARGEOFFS $ - $ - $ 2,410 $ 54,510
NET CHARGEOFFS $ (89,654 ) $ (119,697 ) $ (431,629 ) $ (536,071 )
GROSS LOANS

$

90,089,395

$ 63,302,797 $ 90,089,395 $ 63,302,797
EARNING ASSETS

$

145,277,422

$

124,950,877

$

145,277,422

$

124,950,877

NET INTEREST MARGIN 3.30 % 2.50 % 3.03 % 2.91 %