CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report: July 16, 2004
BWC Financial Corp. (Exact name of registrant as specified in its chapter)
CALIFORNIA (State or other jurisdiction of incorporation) 0-10658 (Commission File Number) 94-262100 (IRS Employer Identification No.)
1400 Civic Drive, Walnut Creek, California 94596
(Address of principal executive offices)
925-932-5353
(Registrant's telephone number)
On July 16, 2004, BWC Financial Corp. issued a press release reporting its financial results for the period ended June 30, 2004.
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 net income for the period ending June 30, 2004.
Ryan reported net income of $2,290,000 or $0.58 diluted earnings per share for the six months ended June 30, 2004, compared to income of $2,198,000 or $0.56 diluted earnings per share for the same period in 2003. Earnings for first half 2004 represent .97% return on average assets (ROA) and 10.06% return on average equity (ROE), compared to 1.05% return on average assets (ROA) and 10.38% return on average equity for first half 2003.
For second quarter 2004, net income was $1,216,000 or $0.31 diluted earnings per share, compared to net income of $1,119,000 or $0.29 diluted earnings per share for the same period in 2003. Return on average assets for second quarter 2004 was 1.03% and return on average equity was 10.60% compared to second quarter 2003 return on average assets of 1.04% and return on average equity of 10.57%.
Total assets of the Corporation at June 30, 2004 were $501,217,000, compared to total assets of $453,603,000, at June 30, 2003
Founded in 1980, Bank of Walnut Creek headquarters and main office are at 1400 Civic Drive, Walnut Creek. Additional branch offices are in Orinda, San Ramon, Danville, Pleasanton, and Livermore with a regional commercial banking office in San Jose. BWC Mortgage Services, with headquarters at 3130 Crow Canyon Place in San Ramon, has mortgage consultants in each of the Bank’s branch offices and additional offices in Tahoe City and Reno.
Additional details may be found in the Summary of Consolidated Financial Results for second quarter and first half 2004:
Selected Financial Data - Summary:
The following table provides certain selected consolidated financial data as of and for the three
month and six month periods ended June 30, 2004 and 2003.
Quarter Ended Year to Date
SUMMARY INCOME STATEMENT June 30, June 30,
( Unaudited in thousands except share data) 2004 2003 2004 2003
----------------------------------------------------------
Interest Income $7,178 $6,466 $13,996 $12,624
Interest Expense 1,381 1,054 2,489 2,069
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Net Interest Income 5,797 5,412 11,507 10,555
Provision for Credit Losses 375 300 825 600
Non-interest Income 4,510 4,310 7,961 8,406
Non-interest Expenses 7,640 7,337 14,412 14,218
Minority Interest 377 288 564 579
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EBIT 1,915 1,797 3,667 3,564
Income Taxes 699 678 1,377 1,366
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Net Income $1,216 $1,119 $2,290 $2,198
Selected Financial Data - Summary cont:
Per share:
(Share and share equivalents have been adjusted for the
stock dividend granted in December 2003)
Basic EPS $0.31 $0.29 $0.59 $0.56
Diluted EPS $0.31 $0.29 $0.58 $0.56
Weighted Average Basic shares 3,910,697 3,902,633 3,909,914 3,941,633
Weighted Average Diluted Shares 3,944,930 3,921,484 3,945,003 3,957,036
Cash dividends $ 0.06 $ - $ 0.12 $ -
Book value at period-end $ 11.72 $ 10.99
Ending shares (adjustedfor stock dividend in December 2003) 3,918,067 3,902,591
Quarter Ended Year to Date
June 30, June 30,
Financial Ratios: 2004 2003 2004 2003
----------------------------------------------------------
Return on Average Assets 1.03% 1.04% 0.97% 1.05%
Return on Average Equity 10.60% 10.57% 10.06% 10.38%
Net Interest Margin to Earning Assets 4.85% 5.39% 5.32% 5.67%
Net loan losses (recoveries) to avg. loans -0.01% 0.11% -0.04% 0.19%
Efficiency Ratio (Bank only) 65.00% 68.75% 66.23% 68.13%
SUMMARY BALANCE SHEET
(Unaudited in thousands) June 30,
Assets: 2004 2003
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Cash and Equivalents $ 26,269 $ 21,477
Investments 93,608 72,008
Loans 356,468 341,917
Allowance for Credit Losses (7,655) (5,837)
BWC Mortgage Services, Loans Held-for-Sale 18,445 11,994
Other Assets 14,082 12,044
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Total Assets $ 501,217 $ 453,603
Deposits $ 401,770 $ 365,679
Other Borrowings 50,297 41,783
Other Liabilities 3,217 3,241
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Total Liabilities 455,284 410,703
Equity 45,933 42,900
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Total Liabilities and Equity $ 501,217 $ 453,603
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 to reflect circumstances or events that occur after the date the forward-looking statements are made.7/16/04