January 23, 2004
Walnut Creek, CA
Contact: James L. Ryan
Bank of Walnut Creek
(925) 932-5353
BWC FINANCIAL CORP. ANNOUNCES FOURTH QUARTER & YEAR-TO-DATE EARNINGS
James L. Ryan, Chief Executive Officer and Chairman of the Board of BWC Financial Corp. and its subsidiaries Bank of Walnut Creek and BWC Mortgage Services, announced Fourth Quarter and Year End 2003 earnings.
Net income for the Corporation for the year ending December 31, 2003 was $4,799,000 or $1.22 diluted earnings per share, compared to net income of $4,588,000 or $1.15 diluted earnings per share at Year End 2002.
Earnings for the Year 2003 represent a return on average assets (ROA) of 1.09% and a return on average equity (ROE) of 11.14%, compared to an ROA of 1.13% and an ROE of 11.59% for the Year 2002.
Fourth Quarter 2003 income was $1,183,000 or $0.30 diluted earnings per share compared to Fourth Quarter 2002 income of $1,342,000 or $0.34 diluted earnings per share. Earnings for Fourth Quarter 2003 represent a return on average assets (ROA) of 1.03 % and a return on average equity (ROE) of 10.69% compared to a 1.31% ROA and a 13.03% ROE for Fourth Quarter 2002.
Total assets of the Corporation at December 31, 2003 were $457,156,000, compared to total assets of $409,466,000 at Year End 2002.
Additional details may be found in the Summary of Consolidated Financial Results for Year End and Fourth Quarter 2003.
BWC Financial Corp. Consolidated Financial Results In thousands except share and per share amounts Quarter Ended Year to Date SUMMARY INCOME STATEMENT December 31, December 31, 2003 2002 2003 2002 ---------------------------------------------------------------- Interest Income $6,657 $6,295 $26,312 $25,416 Interest Expense 971 1,110 4,252 5,003 ---------------------------------------------------------------- Net Interest Income 5,686 5,185 22,060 20,413 Provision for Credit Losses 450 300 1,500 1,200 Non-interest Income 3,649 3,980 17,377 11,692 Non-interest Expenses 6,968 6,443 29,128 22,745 Minority Interest 112 335 1,172 970 ---------------------------------------------------------------- EBIT 1,805 2,087 7,637 7,190 Income Taxes 622 745 2,838 2,602 ---------------------------------------------------------------- Net Income $1,183 $1,342 $4,799 $4,588 Basic EPS $0.30 $0.34 $1.22 $1.21 Diluted EPS $0.30 $0.34 $1.22 $1.15 Quarter Ended Year to Date December 31, December 31, SELECTED PERFORMANCE RATIOS 2003 2002 2003 2002 ---------------------------------------------------------------- Return on Average Assets 1.03% 1.31% 1.09% 1.13% Return on Average Equity 10.69% 13.03% 11.14% 11.59% Net Interest Margin to Earning Assets 5.19% 5.38% 5.34% 5.43% Efficiency Ratio (Bank only) 65.25% 65.28% 66.30% 66.37% SUMMARY BALANCE SHEET In thousands December 31, December 31, Assets: 2003 2002 ---------------- ---------------- Cash and Equivalents $21,500 $23,029 Investments 86,655 71,105 Loans 337,119 309,560 Allowance for Credit Losses -6,692 -5,977 Other Assets 18,574 11,749 ---------------- ---------------- Total Assets $457,156 $409,466 Deposits $370,165 $340,953 Other Borrowings 38,423 23,622 Other Liabilities 3,745 2,892 ---------------- ---------------- Total Liabilities $412,333 $367,467 Equity 44,823 41,999 Total Liabilities and Equity $457,156 $409,466 Common Stock issued and outstanding 3,909,132 3,619,510
Founded in 1980, Bank of Walnut Creek’s headquarters and main office are at 1400 Civic Drive, Walnut Creek. Additional branch offices are in Orinda, San Ramon, Danville, Pleasanton, and a regional business center in San Jose. BWC Mortgage Services, with headquarters in San Ramon, has mortgage consultants in each of the Bank’s branch offices.
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Nasdaq: BWCF
http://www.bowc.com
This press release contains forward-looking statements with respect to the financial condition, results of operation and business of BWC Financial Corp.(BWC). These include statements that relate to or are dependent on estimates or assumptions relating to the prospects of continued loan and deposit growth, improved credit quality, the operating characteristics of the Company’s income tax refund programs and the economic conditions within its markets. These forward-looking statements involve certain risks and uncertainties, many of which are beyond the Company’s control. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) increased competitive pressure among financial services companies; (2) changes in the interest rate environment reducing interest margins or increasing interest rate risk; (3) deterioration in general economic conditions, internationally, nationally or in the State of California; (4) the occurrence of future terrorist acts or impact of military actions;and (5) legislative or regulatory changes adversely affecting the business in which BWC engages. Forward-looking statements speak only as of the date they are made, and BWC does not undertake to update forward-looking statements. 1/23/04