CalWest Bancorp Announces Financial Results as of June 30, 2019

August 2, 2019 5:34 PM | 65 min read |

Total Assets increased 20% YTD; increased 32% Year-over-Year

Deposits increased 23% YTD; increased 33% Year-over-Year

Loans increased 6% YTD; increased 25% Year-over-Year

Net Income of $648k YTD

CalWest Bancorp CALW, the holding company for CalWest Bank, today announced the consolidated financial results for the second quarter ending June 30, 2019.

Significant items for the period include:

  • Net Interest Income improved 20% year-over-year
  • Non-Interest Expenses increased 27% year-over-year reflecting increased staffing and locations
  • Net Income for Q2/2019 was $158k less than Q2/2018
  • The year-over-year increase in deposits centered in DDA and MMA, with purposeful reductions in CDs; DDA deposits increased 32% year-over-year
  • Nonperforming Loans of only $523 and ALLL-to-Gross Loans of 1.47%

"Loan demand rebounding during the second quarter along with our deposit growth in core deposits drove the improvement in our Net Interest Income. Non-Interest Income is improving as we focus on several cash management initiatives. The year-over-year increase in Non-Interest Expenses reflects the strategic decisions to expand our staff, improve our branch locations, and relocate our administrative office, all of which is having a positive effect on deposit growth," noted Glenn Gray, President and CEO of CalWest Bancorp and CalWest Bank.

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 branches located in Rancho Santa Margarita, Irvine, Huntington Beach and Redlands, and a loan production office in Laguna Niguel.

Source: CalWest Bancorp

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.

CalWest Bancorp - Financial Results      
STATEMENT OF CONDITION      
(UNAUDITED)      
   

ASSETS

  End of Period   Annual
  6/30/2019   6/30/2018   Change %
Cash & Due from Banks  

$

5,645,373

 

 

$

4,381,990

 

 

29

%

Federal Funds Sold and Interest Bearing Balances  

 

34,107,899

 

 

 

15,497,312

 

 

120

%

Total Cash and Cash Equivalent  

 

39,753,272

 

 

 

19,879,302

 

 

100

%

       
Investment Securities  

 

14,556,523

 

 

 

15,302,647

 

 

-5

%

       
       
Real Estate Loans  

 

135,639,517

 

 

 

109,577,437

 

 

24

%

Commercial and Industrial Loans  

 

31,262,331

 

 

 

23,981,034

 

 

30

%

Consumer Loans  

 

1,318,336

 

 

 

1,111,830

 

 

19

%

Gross Loans  

 

168,220,184

 

 

 

134,670,301

 

 

25

%

Deferred Loan Fees and Discounts  

 

(6,301

)

 

 

138,713

 

 

-105

%

Loans Net of Def Fees and Discounts  

 

168,213,883

 

 

 

134,809,014

 

 

25

%

Allowance for Loan Losses  

 

(2,480,235

)

 

 

(2,507,644

)

 

-1

%

Net Loans  

 

165,733,648

 

 

 

132,301,370

 

 

25

%

       
Federal Reserve Bank, Federal Home Loan Bank,      
and Correspondent Bank Stocks  

 

1,691,380

 

 

 

1,509,980

 

 

12

%

Bank Premises and Equipment  

 

5,041,907

 

 

 

308,240

 

 

1536

%

Bank Owned Life Insurance  

 

6,370,518

 

 

 

6,216,446

 

 

2

%

Other Assets  

 

1,277,706

 

 

 

1,484,786

 

 

-14

%

Total Assets

 

$

234,424,954

 

 

$

177,002,771

 

 

32

%

       

LIABILITIES AND CAPITAL

  End of Period  
  6/30/2019   6/30/2018  
Non-Interest Bearing Demand Deposits  

$

87,859,594

 

 

$

66,357,981

 

 

32

%

Int-Bearing Transaction Accounts  

 

8,762,981

 

 

 

10,671,603

 

 

-18

%

Savings Deposits  

 

23,433,416

 

 

 

26,127,845

 

 

-10

%

Money Market Deposits  

 

77,386,658

 

 

 

39,110,199

 

 

98

%

Certificate of Deposits  

 

7,520,404

 

 

 

15,308,813

 

 

-51

%

Wholesale Brokered Deposits  

 

4,012,250

 

 

 

1,068

 

 

100

%

Total Deposits  

 

208,975,303

 

 

 

157,577,509

 

 

33

%

       
Subordinated debentures  

 

3,093,000

 

 

 

3,093,000

 

 

0

%

Total Deposits and Int-Bearing liabilities  

 

212,068,303

 

 

 

160,670,509

 

 

32

%

       
Other Liabilities  

 

4,914,863

 

 

 

520,943

 

 

843

%

Total Capital  

 

17,441,788

 

 

 

15,811,319

 

 

10

%

Total Liabilities and Capital

 

$

234,424,954

 

 

$

177,002,771

 

 

32

%

       
       
CREDIT QUALITY DATA   End of Period  
(UNAUDITED)   6/30/2019   6/30/2018  
       
Non-Accruing Loans  

$

523

 

 

$

29,398

 

 
Foreclosed Assets  

$

-

 

 

$

-

 

 
Total Nonperforming Assets  

$

523

 

 

$

29,398

 

 
       
Nonperforming Loans to Gross Loans  

 

0.00

%

 

 

0.02

%

 
Nonperfoming assets to Loans  

 

0.00

%

 

 

0.02

%

 
Allowance for Loan Losses to Gross Loans  

 

1.47

%

 

 

1.86

%

 
       
CAPITAL RATIOS (CALWEST BANK)   End of Period  
  6/30/2019   6/30/2018  
Tier 1 Leverage Ratio  

 

9.33

%

 

 

10.45

%

 
Tier 1 Risk Based Capital Ratio  

 

10.66

%

 

 

12.95

%

 
Total Risk Based Capital Ratio  

 

11.91

%

 

 

14.21

%

 
CONSOLIDATED INCOME STATEMENT 3-Month Period Ended 6-Month Period Ended
(IN $000, UNAUDITED) 6/30/2019 6/30/2018 % Change 6/30/2019 6/30/2018 % Change
 
Interest Income

$

2,402

 

$

1,960

 

23

%

$

4,681

 

$

3,727

 

26

%

Interest Expense

 

393

 

 

236

 

67

%

 

762

 

 

466

 

64

%

Net Interest Income

 

2,009

 

 

1,724

 

17

%

 

3,919

 

 

3,261

 

20

%

 
Provisions for Loan & Lease Losses

 

(20

)

 

(38

)

-47

%

 

(46

)

 

(79

)

-42

%

Net Interest after Loan Loss Provisions

 

2,029

 

 

1,762

 

15

%

 

3,965

 

 

3,340

 

19

%

 
Service Charges

 

103

 

 

138

 

-25

%

 

212

 

 

287

 

-26

%

Bank-Owned Life Insurance Income

 

39

 

 

38

 

3

%

 

77

 

 

76

 

1

%

Gain (Loss) on Investments

 

-

 

 

-

 

0

%

 

-

 

 

113

 

-100

%

Other Non-Interest Income

 

57

 

 

31

 

84

%

 

105

 

 

48

 

119

%

Total Non-Interest Income

 

199

 

 

207

 

-4

%

 

394

 

 

524

 

-25

%

 
Salaries & Benefits

 

1,046

 

 

961

 

9

%

 

2,200

 

 

1,915

 

15

%

Occupancy Expense

 

200

 

 

116

 

72

%

 

344

 

 

217

 

59

%

Other Non-Interest Expenses

 

636

 

 

378

 

68

%

 

1,162

 

 

784

 

48

%

Total Non-Interest Expense

 

1,882

 

 

1,455

 

29

%

 

3,706

 

 

2,916

 

27

%

 
Income Before Taxes

 

346

 

 

514

 

-33

%

 

653

 

 

948

 

-31

%

Provision for Income Taxes

 

5

 

 

15

 

0

%

 

5

 

 

15

 

-67

%

Net Income

$

341

 

$

499

 

-32

%

$

648

 

$

933

 

-31

%

 
 
PER SHARE DATA 3-Month Period Ended 6-Month Period Ended
(UNAUDITED) 6/30/2019 6/30/2018 % Change 6/30/2019 6/30/2018 % Change
Basic Earnings per Share

$

0.00

 

$

0.01

 

32

%

$

0.01

 

$

0.01

 

31

%

Diluted Earnings per Share

$

0.00

 

$

0.01

 

32

%

$

0.01

 

$

0.01

 

31

%

Common Dividends

$

-

 

$

-

 

0

%

$

-

 

$

-

 

0

%

 
Weighted Average Shares Outstanding

 

74,036,505

 

 

74,036,505

 

 

74,036,505

 

 

74,036,505

 

Weighted Average Diluted Shares

 

74,036,505

 

 

74,036,505

 

 

74,036,505

 

 

74,036,505

 

 
Book Value per Basic Share (EOP)

$

0.24

 

$

0.21

 

$

0.24

 

$

0.21

 

 
Common Shares Outstanding (EOP)

 

74,036,505

 

 

74,036,505

 

 

74,036,505

 

 

74,036,505

 

 
3-Month Period Ended 6-Month Period Ended
6/30/2019 6/30/2018 6/30/2019 6/30/2018
KEY FINANCIAL RATIOS
(UNAUDITED)
Return on Average Equity (annualized)

 

7.90

%

 

12.72

%

 

7.61

%

 

13.86

%

Return on Average Assets (annualized)

 

0.61

%

 

1.12

%

 

0.60

%

 

1.13

%

Net Interest Margin (Tax-Equivalent)

 

3.71

%

 

4.16

%

 

3.61

%

 

3.94

%

Efficiency Ratio

 

85.24

%

 

75.35

%

 

85.93

%

 

77.04

%

Net Charge-offs to Gross Loans

 

-0.01

%

 

-0.01

%

 

-0.03

%

 

-0.04

%

 

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