Exhibit 99.1
PRESS RELEASE
SOUTH COUNTY BANK REPORTS 2003 RESULTS
January 26, 2004 – South County Bank, a wholly owned subsidiary of CalWest Bancorp (OCTBB – CALW) reported financial results for the twelve months ended December 31, 2003. The Bank’s net income decreased by 83.5% to $165,000 compared to net income of $997,000 as of December 31, 2002. Due to high loan growth of 51.8% from December 31, 2002, the Bank increased its allowance for loan loss by 59.5% from December 31, 2002, by adding $868,000 in loan loss provisions. As a result of increase in the loan portfolio, the Bank’s interest income increased by 22.2% to $4.87 million for twelve months ended December 31, 2003, from $3.98 million for the same period as of December 31, 2002. Also, the non-interest income increased by 6.9% to $1.90 million for the twelve months ended December 31, 2003, from $1.77 million for the same period ended December 31, 2002.
South County Bank’s total assets increased 22.2% to $109.7 million as of December 31, 2003 from $89.8 million as of December 31, 2002. Total deposits increased 22.0% to $98.7 million as of December 31, 2003 compared to $80.9 million as of December 31, 2002. Total loans not including loans held for sale increased 51.8% to $68.3 million as of December 31, 2003 from $44.9 million as of December 31, 2002.
Total shareholders’ equity increased 28.6% to $10.6 million as of December 31, 2003 from $8.3 million as of December 31, 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.
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)
|
| DECEMBER 31 2003 |
| DECEMBER 31, 2002 |
| % CHANGE |
| ||
CASH AND DUE FROM |
| $ | 4,844,000 |
| $ | 11,461,000 |
| -57.73 | % |
FEDERAL FUNDS SOLD |
| 21,160,000 |
| 6,335,000 |
| 234.02 | % | ||
INVESTMENTS |
| 11,188,000 |
| 13,430,000 |
| -16.69 | % | ||
LOANS AVAILABLE FOR SALE |
| 3,144,000 |
| 11,866,000 |
| -73.50 | % | ||
LOANS NET OF DISCOUNT |
| 68,283,000 |
| 44,992,000 |
| 51.77 | % | ||
LESS: ALLOWANCE FOR LOAN LOSSES |
| 815,000 |
| 511,000 |
| 59.49 | % | ||
OTHER ASSETS |
| 1,911,000 |
| 2,180,000 |
| -12.34 | % | ||
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TOTAL ASSETS |
| $ | 109,715,000 |
| $ | 89,753,000 |
| 22.24 | % |
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NONINTEREST BEARING DEPOSITS |
| $ | 45,504,000 |
| $ | 24,632,000 |
| 84.74 | % |
INTEREST BEARING DEPOSITS |
| 53,161,000 |
| 56,229,000 |
| -5.46 | % | ||
TOTAL DEPOSITS |
| 98,665,000 |
| 80,861,000 |
| 22.02 | % | ||
SUBORDINATED DEBT |
| 114,000 |
| 114,000 |
| 100.00 | % | ||
OTHER LIABILITIES |
| 308,000 |
| 515,000 |
| -40.19 | % | ||
TOTAL LIABILITIES |
| $ | 99,087,000 |
| $ | 81,490,000 |
| 21.59 | % |
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COMMON STOCK |
| $ | 11,706,000 |
| $ | 9,506,000 |
| 23.14 | % |
UNDIVIDED PROFITS |
| (1,077,000 | ) | (1,242,000 | ) | -13.29 | % | ||
OTHER COMPREHENSIVE INCOME |
| (1,000 | ) | (1,000 | ) | 0.00 | % | ||
TOTAL SHAREHOLDERS’ EQUITY |
| $ | 10,628,000 |
| $ | 8,263,000 |
| 28.62 | % |
TOTAL LIABILITIES AND EQUITY |
| $ | 109,715,000 |
| $ | 89,753,000 |
| 22.24 | % |
TIER 1 LEVERAGE RATIO |
| 9.92 | % | 9.84 | % |
TIER 1 RISK BASED CAPITAL RATIO |
| 12.78 | % | 13.16 | % |
TOTAL RISK BASED CAPITAL RATIO |
| 13.87 | % | 14.15 | % |
SOUTH COUNTY BANK
CONDENSED STATEMENT OF EARNINGS
(UNAUDITED)
|
| FOR THE TWELVE MONTHS ENDED |
| % INCREASE |
| ||||
|
| DECEMBER 31 2003 |
| DECEMBER 31 2002 |
|
| |||
INTEREST INCOME |
| $ | 4,874,000 |
| $ | 3,988,000 |
| 22.2 | % |
INTEREST EXPENSE |
| 1,027,000 |
| 1,318,000 |
| -22.1 | % | ||
NET INTEREST INCOME |
| 3,847,000 |
| 2,670,000 |
| 44.1 | % | ||
PROVISION FOR LOAN LOSSES |
| 868,000 |
| 163,000 |
| 432.5 | % | ||
NONINTEREST INCOME |
| 1,895,000 |
| 1,773,000 |
| 6.9 | % | ||
NONINTEREST EXPENSE |
| 4,709,000 |
| 3,622,000 |
| 30.0 | % | ||
PRE TAX INCOME |
| 165,000 |
| 658,000 |
| -74.9 | % | ||
INCOME TAXES |
| — |
| (339,000 | ) | -100.0 | % | ||
NET INCOME |
| $ | 165,000 |
| $ | 997,000 |
| -83.5 | % |
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EARNINGS PER SHARE BASIC |
| $ | 0.15 |
| $ | 1.22 |
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EARNINGS PER SHARE DILUTED |
| $ | 0.15 |
| $ | 1.22 |
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YTD WTD AVG SHARES OUTSTANDING |
| 1,083,553 |
| 820,158 |
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Contact:
South County Bank, Santa Margarita
Najam Saiduddin, 949/766-3000
Source: South County Bank