Exhibit 99.1
PRESS RELEASE
SOUTH COUNTY BANK REPORTS THIRD QUARTER 2003 RESULTS
October 22, 2003 – South County Bank, a wholly owned subsidiary of CalWest Bancorp (OCTBB – CALW) reported financial results for the nine months ended September 30, 2003. The Bank’s net income decreased by 20.1% to $522,000 compared to net income of $653,000 as of September 30, 2002. However, on a pre-tax basis, income as of September 30, 2003 increased by 6.1% to $572,000 compared to $539,000 as of September 30, 2002.
On a consolidated basis, CalWest Bancorp reported $471,000 net income as of September 30, 2003 or $0.44 per common share on a fully diluted basis. CalWest Bancorp became a bank holding company for South County Bank during the third quarter of 2003 and, as a result, has no prior comparative consolidated financial information.
South County Bank’s total assets increased 49.6% to $111.5 million as of September 30, 2003 from $74.5 million as of September 30, 2002. Total deposits increased 52.3% to $99.9 million as of September 30, 2003 compared to $65.6 million as of September 30, 2002. Total loans increased 32.4% to $66.9 million as of September 30, 2003 from $50.6 million as of September 30, 2002.
Total shareholders’ equity increased 38.7% to $10.9 million as of September 30, 2003 from $7.9 million as of September 30, 2002. In September 2003, CalWest Bancorp closed a Trust Preferred transaction for $3 million and it transferred $2.2 million to South County Bank as tier 1 capital.
On a consolidated basis, CalWest Bancorp total assets were $111.6 million as of September 30, 2003. Total shareholders’ equity was $8.7 million as of September 30, 2003.
“South County Bank’s growth in earning assets, deposits and equity continues to exceed our expectations,” said Thomas E. Yott, President and CEO of South County Bank. “The Bank started recording tax expense in third quarter 2003 that caused net income to decline compared to third quarter results in 2002”.
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.
SOUTH COUNTY BANK
CONDENSED BALANCE SHEET
(UNAUDITED)
|
| SEPTEMBER 30 2003 |
| SEPTEMBER 30, 2002 |
| % CHANGE |
| ||
CASH AND DUE FROM |
| $ | 6,776,000 |
| $ | 4,168,000 |
| 62.57 | % |
FEDERAL FUNDS SOLD |
| 22,435,000 |
| 12,795,000 |
| 75.34 | % | ||
INVESTMENTS |
| 14,143,000 |
| 5,715,000 |
| 147.47 | % | ||
LOANS AVAILABLE FOR SALE |
| 5,024,000 |
| 12,116,000 |
| -58.53 | % | ||
LOANS NET OF DISCOUNT |
| 61,926,000 |
| 38,448,000 |
| 61.06 | % | ||
LESS: ALLOWANCE FOR LOAN LOSSES |
| 616,000 |
| 491,000 |
| 25.46 | % | ||
OTHER ASSETS |
| 1,788,000 |
| 1,761,000 |
| 1.53 | % | ||
|
|
|
|
|
|
|
| ||
TOTAL ASSETS |
| $ | 111,476,000 |
| $ | 74,512,000 |
| 49.61 | % |
|
|
|
|
|
|
|
| ||
NONINTEREST BEARING DEPOSITS |
| $ | 39,589,000 |
| $ | 21,228,000 |
| 86.49 | % |
INTEREST BEARING DEPOSITS |
| 60,405,000 |
| 44,410,000 |
| 36.02 | % | ||
TOTAL DEPOSITS |
| 99,994,000 |
| 65,638,000 |
| 52.34 | % | ||
SUBORDINATED DEBT |
| 114,000 |
| 114,000 |
| 100.00 | % | ||
OTHER LIABILITIES |
| 387,000 |
| 841,000 |
| -53.98 | % | ||
TOTAL LIABILITIES |
| $ | 100,495,000 |
| $ | 66,593,000 |
| 50.91 | % |
|
|
|
|
|
|
|
| ||
COMMON STOCK |
| $ | 11,706,000 |
| $ | 9,506,000 |
| 23.14 | % |
UNDIVIDED PROFITS |
| (720,000 | ) | (1,586,000 | ) | -54.60 | % | ||
OTHER COMPREHENSIVE INCOME |
| (5,000 | ) | (1,000 | ) | 400.00 | % | ||
TOTAL SHAREHOLDERS’ EQUITY |
| $ | 10,981,000 |
| $ | 7,919,000 |
| 38.67 | % |
TOTAL LIABILITIES AND EQUITY |
| $ | 111,476,000 |
| $ | 74,512,000 |
| 49.61 | % |
|
|
|
|
|
|
|
| ||
TIER 1 LEVERAGE RATIO |
| 10.09 | % | 11.56 | % |
|
| ||
TIER 1 RISK BASED CAPITAL RATIO |
| 14.35 | % | 14.00 | % |
|
| ||
TOTAL RISK BASED CAPITAL RATIO |
| 15.27 | % | 15.07 | % |
|
|
2
SOUTH COUNTY BANK
CONDENSED STATEMENT OF EARNINGS
(UNAUDITED)
|
| FOR THE SIX MONTHS ENDED |
|
|
| ||||
|
| SEPTEMBER 30 2003 |
| SEPTEMBER 30 2002 |
| % INCREASE |
| ||
INTEREST INCOME |
| $ | 3,562,000 |
| $ | 2,911,000 |
| 22.4 | % |
|
|
|
|
|
|
|
| ||
INTEREST EXPENSE |
| 833,000 |
| 944,000 |
| -11.8 | % | ||
|
|
|
|
|
|
|
| ||
NET INTEREST INCOME |
| 2,729,000 |
| 1,967,000 |
| 38.7 | % | ||
|
|
|
|
|
|
|
| ||
PROVISION FOR LOAN LOSSES |
| 163,000 |
| 143,000 |
| 14.0 | % | ||
|
|
|
|
|
|
|
| ||
NONINTEREST INCOME |
| 1,470,000 |
| 1,283,000 |
| 14.6 | % | ||
|
|
|
|
|
|
|
| ||
NONINTEREST EXPENSE |
| 3,464,000 |
| 2,568,000 |
| 34.9 | % | ||
|
|
|
|
|
|
|
| ||
PRE TAX INCOME |
| 572,000 |
| 539,000 |
| 6.1 | % | ||
|
|
|
|
|
|
|
| ||
INCOME TAXES |
| 50,000 |
| (114,000 | ) | -143.9 | % | ||
|
|
|
|
|
|
|
| ||
NET INCOME |
| $ | 522,000 |
| $ | 653,000 |
| -20.1 | % |
Contact:
South County Bank, Santa Margarita
Najam Saiduddin, 949/766-3000
Source: South County Bank
3