CalWest Bancorp Announces Financial Results as of December 31, 2012
by
Feb 8th 2013 8:20PM
Updated Feb 8th 2013 8:28PM
CalWest Bancorp Announces Financial Results as of December 31, 2012
IRVINE, Calif.--(BUSINESS WIRE)-- CalWest Bancorp (OTCBB: CALW), the holding company for South County Bank N.A., today announced the consolidated financial results for the three months and year ended December 31, 2012. Significant items for the periods then ending include:
- Quarterly net loss of $1.5 million and full year net loss of $2.1 million.
- Non-performing loans reduced 22.0% since last year, from $9.1 million to $6.9 million; however, given the reduction in total loans, non-performing loans represented 10.6% of total loans at year end.
- A loan loss provision of $1.1 million, substantially relating to the impairment of the non-performing loan noted last quarter, was recorded in December 2012; the full year loan loss provision was $1.9 million.
- Allowance for credit losses ended the quarter at 5.5% of total loans.
- Within the performing loan portfolio, only 0.1% was delinquent, an improvement from 0.8% last year.
- Other Real Estate Owned Assets was reduced from $700,000 at September 30, 2012 to $549,000 as of December 31, 2012, representing a 21.6% reduction in OREO assets.
- Total assets were $150.6 million, an increase of 3.4% since FYE 12/31/11.
- Total deposits increased $7.7 million or 5.7% year-over-year to $141.4 million at December 31, 2012, with non-interest bearing deposits continuing to represent 33% of total deposits.
- The cost of deposits continued to decline, reaching 0.45%, resulting from an increase in core deposits and less reliance on wholesale funding.
- Non-interest income decreased quarter-over-quarter by 60% and year-over-year by 12% as less reliance was placed on gains from the sale of SBA loans and securities.
- Operating expenses decreased 5%, from the same period a year ago.
- The Risk-Based Capital Ratio and the Leverage Capital Ratio ended the year at 11.57% and 5.11% respectively, down from 12.43% and 6.30% respectively as of December 31, 2011.
Commenting on the Bank's results, Glenn Gray, the Bank's president and chief executive officer, stated, "While disappointed with the results in the second half of the year, it was a period requiring difficult and unpleasant decisions that we believe ultimately improves the Bank's position going forward. Although it is challenging to predict the exact performance of a loan portfolio, at this time management believes the allowance for loan losses is adequate. During this coming year we will continue to focus on reducing non-performing loans while adding to our staff to generate organic loan and deposit growth. Additionally, our parent company is exploring strategic alternatives aimed at restoring the Bank's capital."
CalWest Bancorp is the parent company of South County Bank, a community bank founded in October 1999. The Bank is recognized for its exemplary service to entrepreneurs, high net worth individuals and non-profit organizations located throughout Southern California. The Bank serves the business community through its four branches located in Rancho Santa Margarita, Irvine, Huntington Beach, and Redlands.
Forward Looking Comments: The statements contained in this release that are not historical facts are forward-looking statements based on management's current expectations and beliefs concerning future developments and their potential effects on the Bank. There can be no assurance that future developments affecting the Bank will be those anticipated by management. Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties.
| CalWest Bancorp Financial Summary | |||||||||||||||||||||
| UNAUDITED | UNAUDITED | ||||||||||||||||||||
| At or For the Three Months | At or For the Twelve Months | ||||||||||||||||||||
| Ended December 31, | Ended December 31, | ||||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
| Summary of Operations: (In thousands $) | |||||||||||||||||||||
| Interest income | $ | 1,214 | $ | 1,359 | $ | 5,199 | $ | 5,894 | |||||||||||||
| Interest expense | 198 | 248 | 862 | 1,195 | |||||||||||||||||
| Net interest income | 1,016 | 1,111 | 4,337 | 4,699 | |||||||||||||||||
| Provision for loan losses | 1,131 | - | 1,981 | 189 | |||||||||||||||||
| Net interest income (loss) after provision for loan losses | (115 | ) | 1,111 | 2,356 | 4,510 | ||||||||||||||||
| Non-interest income | 244 | 559 | 1,772 | 2,024 | |||||||||||||||||
| Non-interest expense | 1,631 | 1,716 | 6,216 | 6,972 | |||||||||||||||||
| Income before income taxes | (1,502 | ) | (46 | ) | (2,088 | ) | (438 | ) | |||||||||||||
| Income taxes | - | - | 2 | 2 | |||||||||||||||||
| Net Income (Loss) | $ | (1,502 | ) | $ | (46 | ) | $ | (2,090 | ) | $ | (440 | ) | |||||||||
| Per Share Data: (Not in thousands $) | |||||||||||||||||||||
| Income (Loss) per share - basic | $ | (0.62 | ) | $ | (0.02 | ) | $ | (0.87 | ) | $ | (0.18 | ) | |||||||||
| Average shares outstanding - basic | 2,415,530 | 2,413,730 | 2,415,530 | 2,413,730 | |||||||||||||||||
| Balance Sheet Summary: (In thousands $) | |||||||||||||||||||||
| Total assets | $ | 150,596 | $ | 145,615 | $ | 150,596 | $ | 145,615 | |||||||||||||
| Cash and Due From | $ | 5,303 | $ | 4,403 | $ | 5,303 | $ | 4,403 | |||||||||||||
| Investment securities | $ | 63,249 | $ | 50,678 | $ | 63,249 | $ | 50,678 | |||||||||||||
| Fed Funds Sold | $ | 12,740 | $ | 5,365 | $ | 12,740 | $ | 5,365 | |||||||||||||
| Loans, net of deferred fees | $ | 64,843 | $ | 79,862 | $ | 64,843 | $ | 79,862 | |||||||||||||
| Allowance for loan losses ("ALL") | $ | 3,550 | $ | 3,897 | $ | 3,550 | $ | 3,897 | |||||||||||||
| Other Real Estate Owned | $ | 549 | $ | 1,015 | $ | 549 | $ | 1,015 | |||||||||||||
| Non-Interest Bearing Deposits | $ | 47,283 | $ | 50,142 | $ | 47,283 | $ | 50,142 | |||||||||||||
| Interest Bearing Deposits | $ | 94,153 | $ | 83,603 | $ | 94,153 | $ | 83,603 | |||||||||||||
| Total deposits | $ | 141,436 | $ | 133,745 | $ | 141,436 | $ | 133,745 | |||||||||||||
| Other Borrowings | $ | - | $ | 1,000 | $ | - | $ | 1,000 | |||||||||||||
| Subordinated Debentures and Notes | $ | 3,723 | $ | 3,723 | $ | 3,723 | $ | 3,723 | |||||||||||||
| Total shareholders' equity | $ | 4,257 | $ | 6,298 | $ | 4,257 | $ | 6,298 | |||||||||||||
| Selected Data (In thousands $) and Ratios: | |||||||||||||||||||||
| Non-performing Loans | $ | 6,888 | $ | 8,819 | $ | 6,888 | $ | 8,819 | |||||||||||||
| 30 - 120 Days Delinquent Loans | $ | 45 | $ | 588 | $ | 45 | $ | 588 | |||||||||||||
| Texas Ratio | 63.83 | % | 71.47 | % | 63.83 | % | 71.47 | % | |||||||||||||
| Return on average assets | -4.02 | % | -0.12 | % | -1.40 | % | -0.58 | % | |||||||||||||
| Return on average shareholders equity | -141.13 | % | -2.92 | % | -49.10 | % | -6.99 | % | |||||||||||||
| Net interest margin | 2.86 | % | 3.86 | % | 2.86 | % | 3.86 | % | |||||||||||||
| Cost of Deposits | 0.45 | % | 0.47 | % | 0.45 | % | 0.47 | % | |||||||||||||
| ALLL to loans ratios | 5.47 | % | 4.88 | % | 5.47 | % | 4.88 | % | |||||||||||||
| Net loans to deposits ratio | 43.34 | % | 56.80 | % | 43.34 | % | 56.80 | % | |||||||||||||
| Bank leverage capital ratio | 5.11 | % | 6.30 | % | 5.11 | % | 6.30 | % | |||||||||||||
| Bank total risk based capital ratio | 11.57 | % | 12.43 | % | 11.57 | % | 12.43 | % | |||||||||||||
| Employees (full time equivalent) (Not in thousands) | 34 | 37 | 34 | 37 | |||||||||||||||||
CalWest Bancorp
Najam Saiduddin, EVP / Chief Financial Officer
949.766.3000
nsaiduddin@southcountybank.com
KEYWORDS: United States North America California
INDUSTRY KEYWORDS:
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