CalWest Bancorp Announces Financial Results as of March 31, 2017

CalWest Bancorp (OTC:CALW), the holding company for South County Bank N.A., today announced the consolidated financial results for the first quarter ended March 31, 2017.

Significant items for the period include:

• Total loans increased $11 million during the quarter, reaching $102.3 million
  • 54% increase year-over-year
  • Allowance for Loan Losses to Gross Loans at 2.6%
• Total deposits increased $8.7 million during the quarter, reaching $150 million
  • 25% increase year-over-year
  • 37% of deposits are non-interest bearing
• Net interest income was $1.2 million for the quarter
  • 18% improvement year-over-year
• Net income was $173,000 for the quarter, compared to $105,000 in Q1-2016

"Q1 represented a solid start to FY 2017 with loans, deposits and total assets all improving quarter-over-quarter, and net interest income and net income improving year-over-year," noted Glenn Gray, President and CEO of CalWest Bancorp and South County Bank.

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
			3/31/2017				3/31/2016			Change	%
Cash & Due from Banks		$	4,565,282			$	3,187,723			43	%
Federal Funds Sold and Interest Bearing Balances			28,224,000				18,499,000			53	%
Total Cash and Cash Equivalent			32,789,282				21,686,723			51	%
Investment Securities			26,082,610				42,414,486			-39	%
Loans held for sale			1,301,527				361,385			260	%
Real Estate Loans			80,803,911				51,817,053			56	%
Commercial and Industrial Loans			19,390,325				13,549,071			43	%
Consumer Loans			816,855				632,484			29	%
Gross Loans			101,011,091				65,998,608			53	%
Deferred Loan Fees and Discounts			116,636				(49,664	)		-335	%
Loans Net of Def Fees and Discounts			101,127,727				65,948,944			53	%
Allowance for Loan Losses			(2,617,692	)			(2,653,862	)		-1	%
Net Loans			98,510,035				63,295,082			56	%
Federal Reserve Bank, Federal Home Loan Bank,
and Correspondent Bank Stocks - at cost			1,282,250				1,266,500			1	%
Bank Premises and Equipment			151,729				185,446			-18	%
Bank Owned Life Insurance			6,023,145				6,595,523			-9	%
Other Assets			821,213				829,911			-1	%
Total Assets		$	166,961,791			$	136,635,056			22	%
LIABILITIES AND CAPITAL		End of Period
			3/31/2017				3/31/2016
Non-Interest Bearing Demand Deposits		$	55,999,760			$	47,703,462			17	%
Int-Bearing Transaction Accounts			8,632,610				7,874,783			10	%
Savings Deposits			24,157,283				16,810,449			44	%
Money Market Deposits			31,462,185				25,514,653			23	%
Certificate of Deposits			24,923,526				22,386,831			11	%
Wholesale Brokered Deposits			5,013,241				-			100	%
Total Deposits			150,188,605				120,290,178			25	%
Subordinated debentures			3,093,000				3,093,000			0	%
Subordinated notes			-				605,000			-100	%
Total Deposits and Int-Bearing liabilities			153,281,605				123,988,178			24	%
Other Liabilities			335,706				606,234			-45	%
Total Capital			13,344,480				12,040,644			11	%
Total Liabilities and Capital		$	166,961,791			$	136,635,056			22	%
CREDIT QUALITY DATA		End of Period		Annual
(UNAUDITED)			3/31/2017				3/31/2016			Change	%
Non-Accruing Loans		$	174,250			$	19,172			809	%
Foreclosed Assets		$	-			$	-			0	%
Total Nonperforming Assets		$	174,250			$	19,172
Nonperforming Loans to Gross Loans			0.17	%			0.03	%
Nonperforming assets to Loans			0.17	%			0.03	%
Allowance for Loan Losses to Gross Loans			2.59	%			4.02	%
CAPITAL RATIOS (SOUTH COUNTY BANK)		End of Period
			3/31/2017				3/31/2016
Tier 1 Leverage Ratio			10.00	%			11.05	%
Tier 1 Risk Based Capital Ratio			13.84	%			18.89	%
Total Risk Based Capital Ratio			15.10	%			20.17	%

CONSOLIDATED INCOME STATEMENT		3-Month Period Ended			12-Month Period Ended
(IN $000, UNAUDITED)			3/31/2017			3/31/2016		% Change					12/31/2016			12/31/2015		% Change
Interest Income		$	1,403		$	1,162		21	%			$	5,036		$	4,291		17	%
Interest Expense			212			151		40	%				637			651		-2	%
Net Interest Income			1,191			1,011		18	%				4,399			3,640		21	%
Provisions for Loan & Lease Losses			(88	)		(106	)	-17	%				(432	)		(562	)	-23	%
Net Interest after Loan Loss Provisions			1,279			1,117		15	%				4,831			4,202		15	%
Service Charges			124			126		-2	%				507			528		-4	%
Bank-Owned Life Insurance Income			49			48		2	%				548			189		190	%
Gain (Loss) on Investments			-			-		0	%				124			116		7	%
Other Non-Interest Income			82			42		95	%				254			156		63	%
Total Non-Interest Income			255			216		18	%				1,433			989		45	%
Salaries & Benefits			823			680		21	%				2,914			2,756		6	%
Occupancy Expense			100			95		5	%				392			384		2	%
Other Non-Interest Expenses			438			453		-3	%				1,751			2,773		-37	%
Total Non-Interest Expense			1,361			1,228		11	%				5,057			5,913		-14	%
Income Before Taxes			173			105		65	%				1,207			(722	)	267	%
Provision for Income Taxes			-			-		0	%				2			2		0	%
Net Income		$	173		$	105		65	%			$	1,205		$	(724	)	266	%
PER SHARE DATA		3-Month Period Ended			12-Month Period Ended
(UNAUDITED)			3/31/2017			3/31/2016		% Change					12/31/2016			12/31/2015		% Change
Basic Earnings per Share		$	0.00		$	0.00		-61	%			$	0.02		$	(0.17	)	110	%
Diluted Earnings per Share		$	0.00		$	0.00		-61	%			$	0.02		$	(0.17	)	110	%
Common Dividends		$	-		$	-		0	%			$	-		$	-		0	%
Weighted Average Shares Outstanding			74,036,505			72,521,488		2	%				73,031,604			4,247,515		1619	%
Weighted Average Diluted Shares			74,036,505			72,521,488		2	%				73,031,604			4,247,515		1619	%
Book Value per Basic Share (EOP)		$	0.18		$	0.17					$	0.18		$	0.17
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
			3/31/2017			3/31/2016						12/31/2016			12/31/2015
KEY FINANCIAL RATIOS
(UNAUDITED)
Return on Average Equity (annualized)			5.25	%		3.51	%					8.07	%		-8.51	%
Return on Average Assets (annualized)			0.42	%		0.31	%					0.83	%		-0.54	%
Net Interest Margin (Tax-Equivalent)			2.91	%		3.00	%					2.83	%		2.87	%
Efficiency Ratio			94.12	%		100.08	%					86.71	%		127.74	%
Net Charge-offs to Gross Loans			-0.05	%		-0.16	%					-0.43	%		-0.81	%

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