July 25, 2005
Walnut Creek, CA
Contact: James L. Ryan
Bank of Walnut Creek
(925) 932-5353 Ext. 200
BWC FINANCIAL CORP. ANNOUNCES 2005 SECOND QUARTER & FIRST HALF 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 net income for the period ending June 30, 2005.
Ryan reported net income of $3,662,000 or $0.86 diluted earnings per share for the six months ended June 30, 2005, a 60% increase over income of $2,290,000 or $0.53 diluted earnings per share for the same period in 2004. Earnings for first half 2005 represent 1.45% return on average assets (ROA) and 15.30% return on average equity (ROE), compared to .97% return on average assets (ROA) and 10.06% return on average equity for first half 2004.
For second quarter 2005, net income was $1,982,000 or $0.47 diluted earnings per share, compared to net income of $1,216,000 or $0.28 diluted earnings per share for the same period in 2004. Return on average assets for second quarter 2005 was 1.54% and return on average equity was 16.50% compared to second quarter 2004 return on average assets of 1.00% and return on average equity of 10.60%.
Total assets of the Corporation at June 30, 2005 were $551,688,000, compared to total assets of $501,217,000, at June 30, 2004.
Founded in 1980 and celebrating its 25th Anniversary Year in 2005, 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 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, Reno, Concord, Manteca, Redding and Las Vegas.
Additional details may be found in the Summary of Consolidated Financial Results for second quarter and first half 2005:
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| Quarter Ended |
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| Year to Date |
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SUMMARY INCOME STATEMENT |
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| June 30, |
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| June 30, |
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( Unaudited in thousands except share data) |
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| 2005 |
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| 2004 |
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| 2005 |
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| 2004 |
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Interest Income |
| $ | 8,653 |
| $ | 7,178 |
| $ | 16,673 |
| $ | 13,996 |
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Interest Expense |
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| 1,857 |
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| 1,381 |
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| 3,369 |
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| 2,489 |
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Net Interest Income |
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| 6,796 |
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| 5,797 |
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| 13,304 |
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| 11,507 |
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Provision for Credit Losses |
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| — |
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| 375 |
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| — |
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| 825 |
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Non-interest Income |
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| 4,224 |
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| 4,510 |
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| 7,626 |
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| 7,961 |
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Non-interest Expense |
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| 7,552 |
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| 7,640 |
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| 14,567 |
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| 14,412 |
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Minority Interest |
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| 237 |
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| 377 |
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| 341 |
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| 564 |
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EBIT |
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| 3,231 |
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| 1,915 |
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| 6,022 |
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| 3,667 |
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Income Taxes |
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| 1,249 |
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| 699 |
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| 2,360 |
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| 1,377 |
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Net Income |
| $ | 1,982 |
| $ | 1,216 |
| $ | 3,662 |
| $ | 2,290 |
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Per share: |
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(Share and share equivalents have been adjusted |
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for the stock dividend granted in December 2004) |
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Basic EPS |
| $ | 0.47 |
| $ | 0.28 |
| $ | 0.87 |
| $ | 0.53 |
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Diluted EPS |
| $ | 0.47 |
| $ | 0.28 |
| $ | 0.86 |
| $ | 0.53 |
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Weighted Average Basic shares |
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| 4,197,791 |
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| 4,301,767 |
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| 4,213,315 |
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| 4,300,905 |
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Weighted Average Diluted Shares |
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| 4,255,761 |
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| 4,339,423 |
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| 4,269,954 |
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| 4,339,503 |
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Cash dividends |
| $ | 0.08 |
| $ | 0.06 |
| $ | 0.16 |
| $ | 0.12 |
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Book value at period-end |
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| $ | 11.63 |
| $ | 10.66 |
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Ending shares |
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| 4,171,213 |
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| 4,309,874 |
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| Quarter Ended |
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| Year to Date |
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| June 30, |
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| June 30, |
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Financial Ratios: |
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| 2005 |
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| 2004 |
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| 2005 |
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| 2004 |
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Return on Average Assets |
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| 1.54 | % |
| 1.00 | % |
| 1.45 | % |
| 0.97 | % |
Return on Average Equity |
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| 16.50 | % |
| 10.60 | % |
| 15.30 | % |
| 10.06 | % |
Net Interest Margin to Earning Assets |
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| 5.52 | % |
| 4.80 | % |
| 5.56 | % |
| 5.02 | % |
Net loan losses (recoveries) to avg. loans |
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| 0.06 | % |
| -0.01 | % |
| 0.05 | % |
| -0.04 | % |
Efficiency Ratio (Bank only) |
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| 56.74 | % |
| 65.00 | % |
| 58.00 | % |
| 66.23 | % |
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SUMMARY BALANCE SHEET |
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(Unaudited in thousands) |
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| June 30, |
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| June 30, |
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Assets: |
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| 2005 |
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| 2004 |
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Cash and Equivalents |
| $ | 57,878 |
| $ | 26,269 |
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Investments |
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| 63,476 |
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| 93,608 |
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Loans |
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| 392,403 |
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| 356,468 |
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Allowance for Credit Losses |
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| (7,475 | ) |
| (7,655 | ) |
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BWC Mortgage Services, Loans Held-for-Sale |
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| 30,027 |
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| 18,445 |
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Other Assets |
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| 15,379 |
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| 14,082 |
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Total Assets |
| $ | 551,688 |
| $ | 501,217 |
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Deposits: |
| $ | 415,478 |
| $ | 401,770 |
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Other Borrowings |
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| 84,105 |
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| 50,297 |
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Other Liabilities |
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| 3,606 |
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| 3,217 |
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Total Liabilities |
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| 503,189 |
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| 455,284 |
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Equity |
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| 48,499 |
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| 45,933 |
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Total Liabilities and Equity |
| $ | 551,688 |
| $ | 501,217 |
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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. 7/25/05
