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Total Assets increased 7% YTD; increased 13% Year-over-Year

Deposits increased 10% YTD; increased 12% Year-over-Year

Loans decreased 3.6% YTD; increased 20% Year-over-Year

Net Income of $306k YTD

IRVINE, Calif.–(BUSINESS WIRE)–CalWest Bancorp (OTCBB: CALW), the holding company for CalWest Bank,
today announced the consolidated financial results for the first quarter
ending March 31, 2019.

Significant items for the period include:

  • Net Interest Income improved 24% year-over-year
  • Non-Interest Expenses increased 25% year-over-year reflecting
    increased staffing and locations
  • Net Income for Q1/2019 was $128k less than Q1/2018
  • The year-over-year increase in deposits centered in DDA and MMA, with
    purposeful reductions in CDs and Wholesale deposits
  • Nonperforming Loans of only $1k and ALLL-to-Gross Loans of 1.60%

“Low loan demand combined with unusually high loan pay-offs caused net
loan growth to decrease slightly during Q1/2019. Non-Interest Income was
lower compared to the same period last year, as last year included a
$113k non-reoccurring gain. The year-over-year increase in Non-Interest
Expenses reflects the strategic decisions to expand our staff and
improve our branch locations, which we expect to drive loan and deposit
growth going forward,” noted Glenn Gray, President and CEO of CalWest
Bancorp and CalWest Bank.

“With increased emphasis on deposit growth, we have been able to
increase deposits year-over-year and sequentially. Despite encouraging
$5MM run-off of wholesale deposits, total deposits have increased $17MM
YTD, and we have been able to maintain our cost-of-deposits to 70 basis
points.”

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.

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
3/31/2019 3/31/2018

Change %

Cash & Due from Banks $ 4,475,539 $ 4,028,977 11 %
Federal Funds Sold and Interest Bearing Balances   25,995,960     29,868,959   -13 %
Total Cash and Cash Equivalent 30,471,499 33,897,936 -10 %
 
Investment Securities 14,838,469 15,719,957 -6 %
 
 
Real Estate Loans 124,273,370 104,647,309 19 %
Commercial and Industrial Loans 30,026,916 24,302,263 24 %
Consumer Loans   922,619     714,137   29 %
Gross Loans 155,222,905 129,663,709 20 %
Deferred Loan Fees and Discounts 23,188 114,909 -80 %
Loans Net of Def Fees and Discounts 155,246,093 129,778,618 20 %
Allowance for Loan Losses   (2,480,235 )   (2,536,356 ) -2 %
Net Loans 152,765,858 127,242,262 20 %
 
Federal Reserve Bank, Federal Home Loan Bank,
and Correspondent Bank Stocks 1,578,780 1,355,400 16 %
Bank Premises and Equipment 635,128 294,419 116 %
Bank Owned Life Insurance 6,331,067 6,178,358 2 %
Other Assets   2,574,793     1,144,054   125 %
Total Assets $ 209,195,594   $ 185,832,386   13 %
 
LIABILITIES AND CAPITAL End of Period
3/31/2019 3/31/2018
Non-Interest Bearing Demand Deposits $ 76,367,288 $ 67,058,719 14 %
Int-Bearing Transaction Accounts 8,667,492 10,150,592 -15 %
Savings Deposits 26,591,848 28,556,618 -7 %
Money Market Deposits 66,737,664 39,203,798 70 %
Certificate of Deposits 7,728,636 18,406,334 -58 %
Wholesale Brokered Deposits   1,004,063     3,513,373   100 %
Total Deposits 187,096,991 166,889,434 12 %
 
Subordinated debentures   3,093,000     3,093,000   0 %
Total Deposits and Int-Bearing liabilities 190,189,991 169,982,434 12 %
 
Other Liabilities 2,039,762 539,009 278 %
Total Capital   16,965,841     15,310,943   11 %
Total Liabilities and Capital $ 209,195,594   $ 185,832,386   13 %
 
 
CREDIT QUALITY DATA End of Period Annual
(UNAUDITED) 3/31/2019 3/31/2018

Change %

 
Non-Accruing Loans $ 1,223 $ 1,687,761 -100 %
Foreclosed Assets $   $   0 %
Total Nonperforming Assets $ 1,223 $ 1,687,761
 
Nonperforming Loans to Gross Loans 0.00 % 1.30 %

Nonperforming assets to Loans

0.00 % 1.30 %
Allowance for Loan Losses to Gross Loans 1.60 % 1.95 %
 
CAPITAL RATIOS (CALWEST BANK) End of Period
3/31/2019 3/31/2018
Tier 1 Leverage Ratio 9.70 % 10.33 %
Tier 1 Risk Based Capital Ratio 11.69 % 12.55 %
Total Risk Based Capital Ratio 12.95 % 13.81 %
           
CONSOLIDATED INCOME STATEMENT 3-Month Period Ended 12-Month Period Ended
(IN $000, UNAUDITED) 3/31/2019 3/31/2018 % Change 12/31/2018 12/31/2017 % Change
 
Interest Income $ 2,279 $ 1,767 29 % $ 7,854 $ 6,486 21 %
Interest Expense   369     230   60 %   1,018     871   17 %
Net Interest Income 1,910 1,537 24 % 6,836 5,615 22 %
 
Provisions for Loan & Lease Losses   (26 )   (41 ) -37 %   (165 )   (394 ) -58 %
Net Interest after Loan Loss Provisions 1,936 1,578 23 % 7,001 6,009 17 %
 
Service Charges 109 149 -27 % 510 578 -12 %
Bank-Owned Life Insurance Income 38 38 0 % 153 166 -8 %
Gain (Loss) on Investments 0 % (160 ) -100 %
Other Non-Interest Income   47     130   -64 %   245     118   108 %
Total Non-Interest Income 194 317 -39 % 908 702 29 %
 
Salaries & Benefits 1,155 954 21 % 4,065 3,316 23 %
Occupancy Expense 144 101 43 % 510 401 27 %
Other Non-Interest Expenses   525     406   29 %   1,709     1,424   20 %
Total Non-Interest Expense 1,824 1,461 25 % 6,284 5,141 22 %
 
Income Before Taxes 306 434 -29 % 1,625 1,570 4 %

Provision for Income Taxes

        0 %   2     19   -89 %
Net Income $ 306   $ 434   -29 % $ 1,623   $ 1,551   5 %
 
 
PER SHARE DATA 3-Month Period Ended 12-Month Period Ended
(UNAUDITED) 3/31/2019 3/31/2018 12/31/2018 12/31/2017
Basic Earnings per Share $ 0.00 $ 0.01 $ 0.02 $ 0.02
Diluted Earnings per Share $ $ $ 0.02 $ 0.02
Common Dividends $ $ $ $
 
Weighted Average Shares Outstanding 74,036,505 74,036,505 74,036,505 74,036,505
 
Book Value per Basic Share (EOP) $ 0.23 $ 0.21 $ 0.23 $ 0.21
 
Common Shares Outstanding (EOP) 74,036,505 74,036,505 74,036,505 74,036,505
 
3-Month Period Ended 12-Month Period Ended
3/31/2019 3/31/2018 12/31/2018 12/31/2017
KEY FINANCIAL RATIOS
(UNAUDITED)
Return on Average Equity (annualized) 7.28 % 11.48 % 10.29 % 11.06 %
Return on Average Assets (annualized) 0.59 % 0.97 % 0.87 % 0.91 %
Net Interest Margin (Tax-Equivalent) 3.88 % 3.51 % 3.68 % 3.53 %
Efficiency Ratio 86.69 % 78.80 % 81.15 % 81.38 %
Net Charge-offs to Gross Loans -0.02 % -0.03 % -0.07 % -0.21 %

Contacts

CalWest Bancorp
Najam Saiduddin
EVP / Chief Financial Officer
949.766.3000
[email protected]