SAN DIEGO, Oct. 25, 2019 /PRNewswire/ -- Bank of Southern California, N.A. (OTC Pink: BCAL) today reported results for the third quarter ended September 30, 2019. Total assets grew to $839 million at September 30, 2019, a 14% increase compared to the third quarter of 2018. Quarterly net income increased to $1.72 million in Q3 2019 from $1.57 million in Q2 2019; Q3 2018 was $875 thousand, but included $936 thousand in expenses, net of tax, related to the acquisition of Americas United Bank, which closed July 31, 2018. Total loans ended Q3 2019 at $685 million and total deposits were $693 million.

Nathan Rogge, President and CEO of Bank of Southern California said, "Our solid earnings performance for the third quarter included strong commercial loan growth, an increase in noninterest-bearing DDA, and a decrease in time deposits, all driven by our commitment to building long-lasting relationships with our clients. We remain focused on delivering upon this strategy and driving growth for long-term value."

"The Bank continues to demonstrate its commitment to the Southern California business community and has achieved momentum in the newly expanded markets of Los Angeles and Orange. We look forward to achieving additional growth opportunities as we further our investment in Orange County and expand East into the Inland Empire through our proposed merger with CalWest Bank, previously announced on October 21, 2019," concluded Rogge.

Bank of Southern California's continued focus on relationship banking has been impactful, leading to an increase in organic noninterest-bearing demand deposit growth of $15.1 million during the quarter, and a $35.4 million increase since December 2018. John Farkash, Chairman of the Board said, "Results for the third quarter were strong and the Bank remains focused on driving long-term growth and delivering greater value to our shareholders."

Additional Financial Highlights

  • Total loans increased $61 million during the quarter to $685 million at quarter end. Loan payoffs totaled $9.3 million in the quarter, down from the $62 million pace set in the first six months of the year. In addition to the growth in C&I loans, loan growth during Q3 was centered in commercial real estate loans.
  • The Bank has been focused on improving its deposit portfolio mix toward more core deposits. This is not only reflected in the growth in noninterest-bearing demand (DDA), but also in the growth of money market deposits, which increased $23 million in Q3. The Bank will continue to reposition and improve the deposit portfolio with the longer-term goal of managing a strong net interest margin.
  • Noninterest expenses in Q3 2019 include $192 thousand related to the proposed merger with CalWest Bank and in Q2 2018 included $1.2 million related to the merger with Americas United Bank.
  • Nonperforming assets continue to be very low and were 0.27% of total assets at September 30, 2019, compared to 0.60% at December 31, 2018. The allowance for loan losses (ALLL) was 0.75% of total loans at September 30, 2019, up from 0.69% at December 31, 2018. When including $2.0 million in loan fair value credit marks (LFVCM), the ALLL and LFVCM represent 1.05% of total loans versus 1.10% at December 31, 2018.

[Quarterly Financial Highlights Table Follows]

More details about our quarterly results are available on our website and through the following link to our most recent quarterly results and trends: https://www.banksocal.com/about-us/financials.

About Bank of Southern California
A growing community bank, established in 2001, Bank of Southern California, N.A., with headquarters in San Diego, CA, is locally owned and managed, and offers a range of financial products to individuals, professionals and small-to-medium sized businesses. The Bank's solution-driven, relationship-based approach to banking provides accessibility to decision makers and enhances value through strong partnerships with its clients. The Bank currently operates eleven branches in San Diego County, Los Angeles County, Orange County, and the Coachella Valley in Riverside County, as well as a production office in West Los Angeles. For more information, please visit https://www.banksocal.com/ or call (858) 847-4780.

Forward-Looking Statements
This news release may contain comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) and Bank of Southern California intends for such forward-looking statements to be covered by the safe harbor provisions of that Act.

Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management's views as of any subsequent date. Future events are difficult to predict. Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this news release. Factors that might cause such differences include, but are not limited to: the ability of the Bank to successfully execute its business plan; changes in interest rates and interest rate relationships; changes in demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking legislation or regulation; changes in tax laws; changes in prices, levies and assessments; the impact of technological advances; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; and changes in the national and local economy.

Bank of Southern California undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:
Amanda Conover
Bank of Southern California
aconover@banksocal.com
858.847.4762

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Bank of Southern California










Quarterly Financial Highlights










(Unaudited)












Quarterly


9 Months YTD

($$ in thousands except per share data)


2019

2019

2019

2018

2018






3rd Qtr

2nd Qtr

1st Qtr

4th Qtr

3rd Qtr


2019

2018

EARNINGS










 Net interest income

$

7,795

7,625

7,698

8,031

6,736


23,118

16,869

 Provision for loan losses

$

300

200

300

450

450


800

1,150

 NonInterest income

$

695

519

420

526

577


1,633

2,277

 NonInterest expense

$

5,711

5,705

5,198

5,279

5,587


16,613

13,292

 Income tax expense

$

763

667

771

823

401


2,201

1,451

 Net income

$

1,716

1,572

1,849

2,005

875


5,137

3,253











 Basic earnings per share

$

0.20

0.19

0.22

0.24

0.11


0.61

0.49

 Average shares outstanding


8,410,522

8,410,522

8,409,272

8,402,251

7,689,827


8,410,105

6,654,150

 Ending shares outstanding


8,410,522

8,410,522

8,410,522

8,408,022

8,398,092


8,410,522

8,398,092











PERFORMANCE RATIOS










 Return on average assets


0.87%

0.82%

0.99%

1.07%

0.52%


0.89%

0.77%

 Return on average common equity


6.37%

6.02%

7.30%

7.91%

3.77%


6.56%

5.93%

 Yield on loans


5.44%

5.59%

5.66%

5.63%

5.30%


5.56%

5.26%

 Yield on earning assets


5.21%

5.24%

5.36%

5.40%

4.87%


5.27%

4.78%

 Cost of deposits


0.99%

0.98%

0.96%

0.84%

0.72%


0.98%

0.63%

 Net interest margin


4.24%

4.28%

4.41%

4.59%

4.23%


4.31%

4.21%

 Efficiency ratio


67.26%

70.05%

64.03%

61.70%

76.40%


67.12%

69.42%











CAPITAL










 Tangible equity to tangible assets


10.83%

11.62%

11.29%

11.01%

11.14%


10.83%

11.14%

 Book value (BV) per common share

$

12.77

12.56

12.30

12.06

11.77


12.77

11.77

 Tangible BV per common share

$

10.56

10.34

10.07

9.81

9.49


10.56

9.49











ASSET QUALITY










 Net loan charge-offs (recoveries)

$

36

(9)

(7)

(0)

(29)


20

304

 Allowance for loan losses (ALLL)

$

5,153

4,888

4,679

4,373

3,922


5,153

3,922

 ALLL to total loans


0.75%

0.78%

0.74%

0.69%

0.65%


0.75%

0.65%

 Loan fair value credit marks (LFVCM)

$

2,030

2,249

2,479

2,594

2,834


2,030

2,834

 ALLL and LFVCM to total loans


1.05%

1.14%

1.14%

1.10%

1.11%


1.05%

1.11%

 Nonperforming loans

$

2,225

2,033

3,298

4,574

3,733


2,225

3,733

 Other real estate owned

$

0

0

0

0

0


0

0

 Nonperforming assets to total assets


0.27%

0.27%

0.43%

0.60%

0.51%


0.27%

0.51%











END OF PERIOD BALANCES










 Total loans

$

684,717

623,424

628,538

634,651

606,753


684,717

606,753

 Total assets

$

839,060

766,730

768,823

767,948

734,923


839,060

734,923

 Deposits

$

692,899

632,246

635,676

627,816

632,803


692,899

632,803

 Loans to deposits


98.82%

98.60%

98.88%

101.09%

95.88%


98.82%

95.88%

 Shareholders' equity

$

107,400

105,619

103,481

101,360

98,865


107,400

98,865

 Full-time equivalent employees


96

100

96

94

94


96

94











AVERAGE BALANCES (QTRLY) | | (YTD)









 Total loans

$

664,946

623,541

629,799

627,544

540,165


639,557

452,590

 Earning assets

$

730,165

714,889

707,920

694,190

632,508


717,655

535,650

 Total assets (net of AFS valuation)

$

783,043

766,960

755,842

741,463

670,942


768,715

565,060

 Deposits

$

641,867

633,478

628,950

626,433

569,424


634,812

482,113

 Shareholders' equity

$

106,853

104,745

102,707

100,500

92,091


104,783

73,322

 

Cision View original content:http://www.prnewswire.com/news-releases/bank-of-southern-california-announces-third-quarter-2019-results-300945371.html

SOURCE Bank of Southern California, N.A.


Source: Bank of Southern California, N.A.