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CalWest Bancorp Announces Financial Results as of June 30, 2018

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YTD-2018 Net Income of $933,000

Year-over-Year Deposits Increased 2%

Year-over-Year Loans increased 18%

CalWest Bancorp (OTC:CALW), the holding company for CalWest Bank
(formerly known as South County Bank), today announced the consolidated
financial results for the second quarter ended June 30, 2018.

Significant items for the period include:

  • Net Income was $499,000 for the quarter, a sequential 15% increase;
    YTD Net Income was $933,000, a 37% year-over-year increase
  • Net Interest Income was $1.72 million for the quarter, a sequential
    12% improvement; YTD Net Interest Income was $3.26 million, a 26%
    year-over-year increase
  • Total Deposits decreased $9.3 million during the quarter, however YTD
    Deposits have increased $7.3 million and year-over-year Deposits have
    increased $3.1 million
    • 42% of Deposits are non-interest bearing
    • Cost-of Funds steady at 0.50%
  • Total Loans increased $5.0 million during the quarter and $20.9
    million year-over-year
    • Non-performing Assets fell to $29,398 and all are paying-as-agreed
    • Allowance for Loan Losses to Gross Loans ratio at 1.86%

"Although loan growth picked up in May and June, loan pay-offs,
predominantly of non-performing loans, resulted in a YTD increase of
only 1.2%," noted Glenn Gray, President and CEO of CalWest Bancorp and
CalWest Bank. "With recent additions to our front-line staff, and fewer
projected pay-offs, we expect net loan growth for the second half of the
year to put us back on-track."

"The composition of our Deposits has purposely been in transition.
Year-over-year, 'core' deposits have increased by $15 million while
institutional and brokered deposits have been reduced by $12 million.
This improved composition has allowed us to maintain our cost-of
deposits at 0.50%. We anticipate the new staff we recently added, and
the relocation of our Irvine Branch, will generate incremental core
deposits."

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.

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
6/30/2018 6/30/2017

Change %

Cash & Due from Banks $ 4,381,990 $ 5,486,261 -20 %
Federal Funds Sold and Interest Bearing Balances   15,497,312     22,204,000   -30 %
Total Cash and Cash Equivalent 19,879,302 27,690,261 -28 %
 
Investment Securities 15,302,647 23,163,631 -34 %
 
Loans held for sale - 1,280,763 -100 %
 
Real Estate Loans 109,577,437 91,267,295 20 %
Commercial and Industrial Loans 23,981,034 19,174,235 25 %
Consumer Loans   1,111,830     3,375,611   -67 %
Gross Loans 134,670,301 113,817,141 18 %
Deferred Loan Fees and Discounts 138,713 121,106 15 %
Loans Net of Def Fees and Discounts 134,809,014 113,938,247 18 %
Allowance for Loan Losses   (2,507,644 )   (2,617,193 ) -4 %
Net Loans 132,301,370 111,321,054 19 %
 
Federal Reserve Bank, Federal Home Loan Bank,
and Correspondent Bank Stocks - at cost 1,509,980 1,290,750 17 %
Bank Premises and Equipment 308,240 143,049 115 %
Bank Owned Life Insurance 6,216,446 6,061,657 3 %
Other Assets   1,484,786     886,957   67 %
Total Assets $ 177,002,771  

$

171,838,122

  3 %
 
LIABILITIES AND CAPITAL End of Period
6/30/2018 6/30/2017
Non-Interest Bearing Demand Deposits $ 66,357,981 $ 62,706,085 6 %
Int-Bearing Transaction Accounts 10,671,603 8,418,076 27 %
Savings Deposits 26,127,845 25,096,205 4 %
Money Market Deposits 39,110,199 31,138,053 26 %
Certificate of Deposits 15,308,813 22,565,545 -32 %
Wholesale Brokered Deposits   1,068     4,523,199   100 %
Total Deposits 157,577,509 154,447,163 2 %
 
Subordinated debentures   3,093,000     3,093,000   0 %
Total Deposits and Int-Bearing liabilities 160,670,509 157,540,163 2 %
 
Other Liabilities 520,943 345,612 51 %
Total Capital   15,811,319     13,952,347   13 %
Total Liabilities and Capital $ 177,002,771  

$

171,838,122

  3 %
 
 
CREDIT QUALITY DATA End of Period
(UNAUDITED) 6/30/2018 6/30/2017
 
Non-Accruing Loans $ 29,398 $ 146,436
Foreclosed Assets $ -   $ -  
Total Nonperforming Assets $ 29,398 $ 146,436
 
Nonperforming Loans to Gross Loans 0.02 % 0.13 %
Nonperfoming assets to Loans 0.02 % 0.13 %
Allowance for Loan Losses to Gross Loans 1.86 % 2.30 %
 
CAPITAL RATIOS (CALWEST BANK) End of Period
6/30/2018 6/30/2017
Tier 1 Leverage Ratio 10.45 % 10.05 %
Tier 1 Risk Based Capital Ratio 12.95 % 13.28 %
Total Risk Based Capital Ratio 14.21 % 14.54 %
 
           
CalWest Bancorp - Financial Results
     
CONSOLIDATED INCOME STATEMENT 3-Month Period Ended 6-Month Period Ended
(IN $000, UNAUDITED) 6/30/2018 6/30/2017 % Change 6/30/2018 6/30/2017 % Change
 
Interest Income $ 1,960 $ 1,622 21 % $ 3,727 $ 3,025 23 %
Interest Expense   236     219   8 %   466     430   8 %
Net Interest Income 1,724 1,403 23 % 3,261 2,595 26 %
 
Provisions for Loan & Lease Losses   (38 )   (89 ) -57 %   (79 )   (177 ) -55 %
Net Interest after Loan Loss Provisions 1,762 1,492 18 % 3,340 2,772 20 %
 
Service Charges 138 167 -17 % 287 291 -1 %
Bank-Owned Life Insurance Income 38 39 -3 % 76 87 -13 %
Gain (Loss) on Investments - - 0 % 113 (79 ) -243 %
Other Non-Interest Income   31     33   -6 %   48     62   -23 %
Total Non-Interest Income 207 239 -13 % 524 361 45 %
 
Salaries & Benefits 961 750 28 % 1,915 1,573 22 %
Occupancy Expense 116 102 14 % 217 201 8 %
Other Non-Interest Expenses   378     368   3 %   784     676   16 %
Total Non-Interest Expense 1,455 1,220 19 % 2,916 2,450 19 %
 
Income Before Taxes 514 511 1 % 948 683 39 %

Provision for Income Taxes

  15     2   0 %   15     2   650 %
Net Income $ 499   $ 509   -2 % $ 933   $ 681   37 %
 
 
PER SHARE DATA 3-Month Period Ended 6-Month Period Ended
(UNAUDITED) 6/30/2018 6/30/2017 % Change 6/30/2018 6/30/2017 % Change
Basic Earnings per Share $ 0.01 $ 0.01 2 % $ 0.01 $ 0.01 -37 %
Diluted Earnings per Share $ 0.01 $ 0.01 2 % $ 0.01 $ 0.01 -37 %
Common Dividends $ - $ - 0 % $ - $ - 0 %
 
Weighted Average Shares Outstanding 74,036,505 74,036,505 0 % 74,036,505 74,036,505 0 %
Weighted Average Diluted Shares 74,036,505 74,036,505 0 % 74,036,505 74,036,505 0 %
 
Book Value per Basic Share (EOP) $ 0.21 $ 0.19 $ 0.21 $ 0.19
 
Common Shares Outstanding (EOP) 74,036,505 74,036,505 0 % 74,036,505 74,036,505 0 %
 
3-Month Period Ended 6-Month Period Ended
6/30/2018 6/30/2017 6/30/2018 6/30/2017
KEY FINANCIAL RATIOS
(UNAUDITED)
Return on Average Equity (annualized) 12.72 % 14.82 % 13.86 % 10.12 %
Return on Average Assets (annualized) 1.12 % 1.21 % 1.13 % 0.82 %
Net Interest Margin (Tax-Equivalent) 3.87 % 3.35 % 3.94 % 3.26 %
Efficiency Ratio 75.35 % 74.30 % 77.04 % 82.88 %
Net Charge-offs to Gross Loans -0.01 % -0.08 % -0.04 % -0.12 %
 

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