Bank of Southern California Announces Fourth Quarter and Year End 2019 Results

SAN DIEGO, Jan. 29, 2020 /PRNewswire/ -- Bank of Southern California, N.A. BCAL today reported results for the fourth quarter ended December 31, 2019. Total assets ended the year at $830 million at December 31, 2019, an increase of 8.1% compared to December 2018. Total loans increased 6.6% to $677 million and total deposits increased 7.0% to $672 million compared to the prior year as well. Net income for the quarter ended December 31, 2019, was $1.64 million, compared to $1.72 million in Q3 2019 and $2.00 million in Q4 2018. Earnings for the year ended December 31, 2019, were $6.77 million up 29% from $5.26 million for the year ended December 2018. Diluted earnings per share increased to $0.78 for the year ended December 2019 versus $0.71 in the year ended December 2018.

Nathan Rogge, President and CEO of Bank of Southern California said, "We produced solid results for 2019 and continue to increase meaningful loan and deposit relationships while maintaining strong credit quality across our portfolio. Specifically, we reported strong commercial and industrial loan growth, increased non-interest bearing DDA, and a rise in total assets, largely attributed to our recent capital raise." The Banks' focus on C&I lending is not only reflected in a 14% increase in outstanding C&I loans during the year, but also in undisbursed C&I commitments, which increased 46% during the year. Non-interest bearing demand deposits, increased 22% during 2019, a result of our emphasis on relationship-based banking.

"As we enter 2020, we remain focused on advancing and driving growth in the Southern California market. Our strategic merger with CalWest Bank will provide us with an expanded branch presence covering Orange County and the Inland Empire as well as operational synergies and efficiencies, thus allowing us to better serve the business community. The merger is anticipated to close in the second quarter of 2020," concluded Rogge.

John Farkash, Chairman of the Board said, "We are pleased to report another solid quarter to close out 2019. The Bank has achieved good momentum in executing our strategy and moving towards a relationship-focused approach to banking. As we look ahead, we remain focused on driving long-term value for our customers and shareholders."

Additional Financial Highlights

  • Total loans decreased $8 million during the 4th quarter to $677 million at quarter end; the reduction was primarily related to construction loans, which declined $10 million during the quarter as projects paid off as planned. The pace of total loan payoffs slowed in the second half of 2019 to $37 million, down from the $62 million pace set in the first six months of the year. Compared to the first half of the year, new loan origination units increased by 28% in the second half of the year resulting in $155 million in total gross loan commitments in 2019.
  • During 2019, the Bank has focused on improving its core deposit portfolio. This is not only reflected in the 22% growth in noninterest-bearing demand (DDA) during 2019, but also in the growth of money market deposits, which increased $26 million, or 12%, during 2019. This core deposit growth allowed the Bank to decrease reliance on higher cost time deposits, which declined 9% during 2019.
  • Noninterest expenses grew $3.6 million in 2019 compared to 2018. However, both years include non-recurring costs associated with merger and restructuring expenses, $2.1 million in 2018 related to the merger with Americas United Bank, and $592k in 2019 associated with the plan of merger with CalWest Bank.
  • Nonperforming assets continue to be very low and were 0.23% of total assets at December 31, 2019, compared to 0.60% at December 31, 2018. The allowance for loan losses (ALLL) was 0.79% of total loans at December 31, 2019, up from 0.69% at December 31, 2018. When including $1.9 million in loan fair value credit marks (LFVCM), the ALLL and LFVCM represent 1.07% of total loans versus 1.10% at December 31, 2018.

[Quarterly Financial Highlights Table Follows]

More details about our quarterly results are available on our website and through the following link to our most recent quarterly results and trends: https://www.banksocal.com/about-us/financials.

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 to individuals, professionals and small-to-medium 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, Orange County, and the Coachella Valley in Riverside County, as well as a production office in West Los Angeles. 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:

Amanda Conover

Bank of Southern California

aconover@banksocal.com

858.847.4762

*LOGO link for media: https://www.Send2Press.com/300dpi/18-0118s2p-bank-so-cal-300dpi.jpg

Bank of Southern California



















Quarterly Financial Highlights



















(Unaudited)























Quarterly



Annual

($$ in thousands except per share data)



2019

2019

2019

2019

2018











4th Qtr

3rd Qtr

2nd Qtr

1st Qtr

4th Qtr



2019

2018

EARNINGS



















 Net interest income

$

7,736

7,795

7,625

7,698

8,031



30,854

24,900

 Provision for loan losses

$

200

300

200

300

450



1,000

1,600

 NonInterest income

$

321

695

519

420

526



1,954

2,803

 NonInterest expense

$

5,512

5,711

5,705

5,198

5,279



22,125

18,571

 Income tax expense

$

709

763

667

771

823



2,910

2,274

 Net income

$

1,636

1,716

1,572

1,849

2,005



6,773

5,258





















 Basic earnings per share

$

0.19

0.20

0.19

0.22

0.24



0.80

0.74

 Average shares outstanding



8,578,102

8,410,522

8,410,522

8,409,272

8,402,251



8,452,104

7,091,176

 Ending shares outstanding



9,405,190

8,410,522

8,410,522

8,410,522

8,408,022



9,405,190

8,408,022





















PERFORMANCE RATIOS



















 Return on average assets



0.79%

0.87%

0.82%

0.99%

1.07%



0.87%

0.87%

 Return on average common equity



5.93%

6.37%

6.02%

7.30%

7.91%



6.39%

6.57%

 Yield on loans



5.23%

5.44%

5.59%

5.66%

5.63%



5.47%

5.39%

 Yield on earning assets



4.88%

5.21%

5.24%

5.36%

5.40%



5.17%

5.01%

 Cost of deposits



0.88%

0.99%

0.98%

0.96%

0.84%



0.95%

0.70%

 Net interest margin



4.01%

4.24%

4.28%

4.41%

4.59%



4.23%

4.36%

 Efficiency ratio



68.42%

67.26%

70.05%

64.03%

61.70%



67.44%

67.04%





















CAPITAL



















 Tangible equity to tangible assets



12.58%

10.83%

11.62%

11.29%

11.01%



12.58%

11.01%

 Book value (BV) per common share

$

12.81

12.77

12.56

12.30

12.06



12.81

12.06

 Tangible BV per common share

$

10.85

10.56

10.34

10.07

9.81



10.85

9.81





















ASSET QUALITY



















 Net loan charge-offs (recoveries)

$

(11)

36

(9)

(7)

(0)



9

303

 Allowance for loan losses (ALLL)

$

5,363

5,153

4,888

4,679

4,373



5,363

4,373

 ALLL to total loans



0.79%

0.75%

0.78%

0.74%

0.69%



0.79%

0.69%

 Loan fair value credit marks (LFVCM)

$

1,906

2,030

2,249

2,479

2,594



1,906

2,594

 ALLL and LFVCM to total loans



1.07%

1.05%

1.14%

1.14%

1.10%



1.07%

1.10%

 Nonperforming loans

$

1,911

2,225

2,033

3,298

4,574



1,911

4,574

 Other real estate owned

$

0

0

0

0

0



0

0

 Nonperforming assets to total assets



0.23%

0.27%

0.27%

0.43%

0.60%



0.23%

0.60%





















END OF PERIOD BALANCES



















 Total loans

$

676,655

684,717

623,424

628,538

634,651



676,655

634,651

 Total assets

$

830,186

839,060

766,730

768,823

767,948



830,186

767,948

 Deposits

$

671,914

692,899

632,246

635,676

627,816



671,914

627,816

 Loans to deposits



100.71%

98.82%

98.60%

98.88%

101.09%



100.71%

101.09%

 Shareholders' equity

$

120,523

107,400

105,619

103,481

101,360



120,523

101,360

 Full-time equivalent employees



97

96

100

96

94



97

94





















AVERAGE BALANCES (QTRLY) | | (YTD)

















 Total loans

$

678,015

664,946

623,541

629,799

627,544



649,251

495,252

 Earning assets

$

766,012

730,165

714,889

707,920

694,190



729,844

571,450

 Total assets (net of AFS valuation)

$

818,989

783,043

766,960

755,842

741,463



781,386

604,727

 Deposits

$

671,443

641,867

633,478

628,950

626,433



644,045

517,546

 Shareholders' equity

$

109,464

106,853

104,745

102,707

100,500



105,963

80,078

 

Cision View original content:http://www.prnewswire.com/news-releases/bank-of-southern-california-announces-fourth-quarter-and-year-end-2019-results-300995018.html

SOURCE Bank of Southern California, N.A.

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