Bank of Southern California Announces Third Quarter 2018 Financial Results

SAN DIEGO, Nov. 13, 2018 /PRNewswire/ -- Bank of Southern California, N.A. BCAL announced quarterly net income of $874,988 for the third quarter of 2018, compared to $1,088,043 for the third quarter of 2017. For the nine months ended September 30, 2018, net income was $3,253,441, compared to $2,830,295 for the nine months ended September 30, 2017. Results for the quarter and nine months ended September 30, 2018, include approximately $1.2 million and $1.6 million, respectively, in expenses related to the acquisition of Americas United Bank AUNB, which was completed on July 31, 2018.

Commenting on the recently completed acquisition of Americas United Bank, Nathan Rogge, President and CEO of Bank of Southern California said, "We are pleased to welcome Americas United Bank customers, employees, and shareholders to Bank of Southern California. We look forward to capitalizing on our newly expanded footprint and realizing greater efficiencies for the benefit of our shareholders, customers and the communities we serve."

"In addition to leveraging Americas United Bank's talented employees, we also hired several tenured and experienced commercial bankers to further expand on the small business opportunities in the market. We are well positioned to meet the needs of the Southern California business community and look forward to continued growth and success," concluded Rogge.

Total assets at September 30, 2018, were $735 million, up 57% from $468 million at September 30, 2017. Total loans increased to $607 million at September 30, 2018, compared to $387 million at September 30, 2017, an increase of $219 million, while total deposits were $633 million at September 30, 2018, compared to $418 million at September 30, 2017, an increase of $215 million. The increase in total assets, loans and deposits is largely attributable to the acquisition of AUNB, which added approximately $190 million in loans and $203 million in deposits on July 31, 2018.

Other Financial Highlights

  • Net interest income for the quarter ended September 30, 2018, increased 27.5% to $6.7 million from $5.3 million in the prior quarter, primarily from the 26% increase in average earning assets. Net interest margin of 4.23% includes 6 basis points of fair valuation accretion, which is similar to prior quarters. Net interest income will increase, along with average earning assets, in the fourth quarter as we realize a full period post-merger and the relative impact of fair value accretion is also expected to increase in the fourth quarter.
  • Additional cost savings related to synergies from the acquisition of AUB, such as post-conversion data processing expenses, will continue to be realized in the fourth quarter.
  • Nonperforming assets were 0.51% of total assets at September 30, 2018, compared to 0.53% in the prior quarter. The allowance for loan losses (ALLL) was 0.65% of total loans at September 30, 2018, compared to 0.83% in the prior quarter; however, when including over $2.8 million in loan fair value credit marks (LFVCM), the ALLL and LFVCM represent 1.11% of total loans.
  • The Bank continues to be "well-capitalized". After raising $26 million in capital earlier in 2018 and completing the merger July 31, 2018, the Bank reported total risk-based capital of 14.3% as of September 30, 2018, up from 13.5% at December 31, 2017.

[Quarterly Financial Highlights Table Follows]

For more details about our quarterly results, please visit the "About Us" / "Financials" page of our website and follow the link labeled:

Quarterly Results and Trends

About Bank of Southern California:

A growing community bank established in 2001, Bank of Southern California, N.A., with headquarters in San Diego, CA, is locally owned and managed, and offers a range of financial products and services to individuals, professionals, and small-to-mid sized businesses. The Bank's solution-driven, relationship-based approach to banking provides accessibility to decision makers and enhances value through strong partnerships with its clients. The Bank currently operates eleven branches in San Diego County, Los Angeles County, and the Coachella Valley in Riverside County, and a production office in Orange County.

For more information, please visit https://www.banksocal.com/ or call (858) 847-4780.

Forward-Looking Statements

This news release may contain comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) and Bank of Southern California intends for such forward-looking statements to be covered by the safe harbor provisions of that Act.

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," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management's views as of any subsequent date. Future events are difficult to predict. Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this news release. Factors that might cause such differences include, but are not limited to: the ability of the Bank to successfully execute its business plan; changes in interest rates and interest rate relationships; changes in demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking legislation or regulation; changes in tax laws; changes in prices, levies and assessments; the impact of technological advances; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; and changes in the national and local economy.

Bank of Southern California undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.

Contact: Tony DiVita

Bank of Southern California

(858) 847-4783

tdivita@banksocal.com

* LOGO Link for Media: Send2Press.com/300dpi/18-0118s2p-bank-so-cal-300dpi.jpg

Bank of Southern California

Quarterly Financial Highlights

(Unaudited)





Quarterly



9 Months YTD

($$ in thousands except per share data)

2018

2018

2018

2017

2017











3rd Qtr

2nd Qtr

1st Qtr

4th Qtr

3rd Qtr



2018

2017

EARNINGS



















 Net interest income

$

6,736

5,282

4,851

4,711

4,802



16,869

13,041

 Provision for loan losses

$

450

400

300

0

0



1,150

271

 NonInterest income

$

577

602

1,098

799

380



2,277

1,410

 NonInterest expense

$

5,587

3,652

4,053

3,245

3,389



13,292

9,477

 Income tax expense

$

401

526

524

1,132

705



1,451

1,872

 Net income

$

875

1,306

1,072

1,134

1,088



3,253

2,830





















 Basic earnings per share

$

0.11

0.19

0.20

0.22

0.21



0.49

0.55

 Average shares outstanding



7,689,827

6,991,327

5,281,297

5,221,606

5,219,095



6,654,150

5,179,196

 Ending shares outstanding



8,398,092

6,998,750

6,953,720

5,223,627

5,221,197



8,398,092

5,221,197





















PERFORMANCE RATIOS



















 Return on average assets



0.52%

1.00%

0.90%

0.95%

0.96%



0.77%

0.87%

 Return on average common equity



3.77%

6.85%

8.53%

9.08%

8.93%



5.93%

8.10%

 Yield on loans



5.30%

5.38%

5.13%

4.94%

5.39%



5.26%

5.08%

 Yield on earning assets



4.87%

4.78%

4.78%

4.62%

4.85%



4.78%

4.58%

 Cost of deposits



0.72%

0.62%

0.53%

0.47%

0.41%



0.63%

0.36%

 Net interest margin



4.23%

4.22%

4.27%

4.17%

4.46%



4.21%

4.24%

 Efficiency ratio



76.40%

62.06%

68.13%

58.87%

65.40%



69.42%

65.58%





















CAPITAL



















 Tangible equity to tangible assets



11.14%

14.54%

14.14%

10.10%

10.12%



11.14%

10.12%

 Book value (BV) per common share

$

11.77

11.00

10.79

9.51

9.31



11.77

9.31

 Tangible BV per common share

$

9.49

10.81

10.59

9.25

9.04



9.49

9.04





















ASSET QUALITY



















 Net loan charge-offs (recoveries)

$

(29)

341

(9)

210

(106)



304

(95)

 Allowance for loan losses (ALLL)

$

3,922

3,443

3,385

3,076

3,286



3,922

3,286

 ALLL to total loans



0.65%

0.83%

0.83%

0.77%

0.85%



0.65%

0.85%

 Loan fair value credit marks (LFVCM)

$

2,834

681

759

779

847



2,834

847

 ALLL and LFVCM to total loans



1.11%

0.99%

1.01%

0.97%

1.07%



1.11%

1.07%

 Nonperforming loans

$

3,733

2,747

1,272

1,362

1,086



3,733

1,086

 Other real estate owned

$

0

0

0

0

0



0

0

 Nonperforming assets to total assets



0.51%

0.53%

0.24%

0.28%

0.23%



0.51%

0.23%





















END OF PERIOD BALANCES



















 Total loans

$

606,753

414,925

409,196

399,402

387,790



606,753

387,790

 Total assets

$

734,923

521,437

522,118

479,512

467,976



734,923

467,976

 Deposits

$

632,803

442,046

444,300

407,485

417,519



632,803

417,519

 Loans to deposits



95.88%

93.86%

92.10%

98.02%

92.88%



95.88%

92.88%

 Shareholders' equity

$

98,865

77,006

75,016

49,698

48,619



98,865

48,619

 Full-time equivalent employees



94

65

73

76

63



94

63





















AVERAGE BALANCES (QTRLY) | | (YTD)



















 Total loans

$

540,165

407,779

403,693

394,864

359,961



452,590

349,090

 Earning assets

$

632,508

501,776

460,636

447,834

426,992



535,650

411,325

 Total assets (net of AFS valuation)

$

670,942

525,934

484,628

471,271

450,737



565,060

435,160

 Deposits

$

569,424

446,815

425,641

419,101

401,147



482,113

386,972

 Shareholders' equity

$

92,091

76,440

50,983

49,548

48,325



73,322

46,704

 

Cision View original content:http://www.prnewswire.com/news-releases/bank-of-southern-california-announces-third-quarter-2018-financial-results-300747834.html

SOURCE Bank of Southern California, N.A.

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