CalWest Bancorp Announces Financial Results as of June 30, 2014

CalWest Bancorp (OTCBB: CALW), the holding company for South County Bank N.A., today announced the consolidated financial results as of June 30, 2014.

Significant items for the period ending include:

• Second quarter net loss was ($45,000), compared to a year ago net loss of ($71,000)
• Loans decreased 1.5% quarter-over-quarter, but have increased 18% year-over-year
• ALLL ratio remained strong at 4.31%
• Non-performing loans reduced 23% quarter-over-quarter, are down to only $759,000, with 48.3% of the non-performing loans paying-as-agreed
• Total deposits decreased slightly to $132 million, with 34% non-interest bearing, keeping the Bank’s cost-of-deposits low at 0.39%
• Non-interest income returned to a more normal level of $315,000 following the OREO-related gain that occurred in Q1 2014
• Non-interest expenses decreased $177,000 or 12% quarter-over-quarter

“We are pleased with the continuing decline in our Non-Performing Assets which are down to 0.54% of Total Assets from 2.8% a year ago and a historical high of 7.4%,” noted Glenn Gray, President and CEO of CalWest Bancorp and South County Bank. “With asset quality under control, excess liquidity, and a low cost-of-funds of 39 basis points, our primary focus has shifted to growing our loan portfolio. While we are adding new clients, during the past quarter we purposely chose not to match some aggressive refinancing proposals in order to protect our net interest margin over the longer term. Although this resulted in a $1 million decrease in our loan portfolio, we believe it is more prudent to pursue a well-defined strategic plan than to chase loan growth at unsustainable low pricing.”

CalWest Bancorp is the parent company of South County Bank, a community bank recognized for its exemplary service to entrepreneurs, high net worth individuals and non-profit organizations located throughout Southern California. The Bank serves the business community through its four branches located in Rancho Santa Margarita, Irvine, Huntington Beach and Redlands.

This release may contain certain forward-looking statements that are based on management's current expectations regarding economic, legislative, and regulatory issues that may impact Bancorp's earnings in future periods. 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,” “intend,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, the economic uncertainty in the United States and abroad, changes in interest rates, deposit flows, real estate values, expected future cash flows on acquired loans, and competition; changes in accounting principles, policies or guidelines; changes in legislation or regulation; and other economic, competitive, governmental, regulatory and technological factors affecting Bancorp's operations, pricing, products and services. Bancorp undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

CalWest Bancorp Financial Summary
			UNAUDITED											UNAUDITED
			At or For the Three Months											At or For the Six Months
			Ended June 30,											Ended June 30,
				2014				2013			% Change				2014			2013
Summary of Operations: (In thousands $)
	Interest income		$	1,142			$	1,062			7.5	%		$	2,365		$	2,157
	Interest expense			187				174			7.5	%			351			359
	Net interest income			955				888			7.5	%			2,014			1,798
	Provision for loan losses			-				-			0.0	%			-			-
	Net interest income (loss) after provision for loan losses			955				888			7.5	%			2,014			1,798
	Non-interest income			315				348			-9.5	%			1,004			787
	Non-interest expense			1,313				1,305			0.6	%			2,803			2,642
	Income before income taxes			(43	)			(69	)		-37.7	%			215			(57	)
	Income taxes			2				2			0.0	%			2			2
	Net Income (Loss)		$	(45	)		$	(71	)		-36.6	%		$	213		$	(59	)
Per Share Data: (Not in thousands $)
	Income (Loss) per share - basic		$	(0.02	)		$	(0.03	)					$	0.08		$	(0.02	)
	Shares outstanding - basic			2,521,488				2,521,488							2,521,488			2,521,488
			UNAUDITED
			At or For the Six Months
			Ended June 30,
				2014				2013			% Change
Balance Sheet Summary: (In thousands $)
	Cash and Due From		$	5,748			$	5,357			7.3	%
	Interest Bearing Deposits in other banks			3,580				3,380			5.9	%
	Investment securities			45,225				59,483			-24.0	%
	Fed Funds Sold			13,650				11,450			19.2	%
	Loans, net of deferred fees			66,919				56,849			17.7	%
	Allowance for loan losses ("ALL")			(2,883	)			(3,390	)		-15.0	%
	Net Loans			64,036				53,459			19.8	%
	Other Real Estate Owned			-				1,256			-100.0	%
	Company Owned Life Insurance			6,266				6,086			3.0	%
	Federal Reserve Bank and Federal Home Loan Bank Stock			1,050				1,127			-6.8	%
	Other Assets			1,093				2,601			-58.0	%
	Total assets		$	140,648			$	144,199			-2.5	%
	Non-Interest Bearing Deposits		$	45,066			$	47,595			-5.3	%
	Interest Bearing Deposits			87,128				88,638			-1.7	%
	Total deposits			132,194				136,233			-3.0	%
	Subordinated Debentures and Notes			3,698				3,698			0.0	%
	Accrued Interest and other Liabilities			1,067				870			22.6	%
	Total shareholders' equity			3,689				3,398			8.6	%
	Total Liabilities and Shareholders Equity		$	140,648			$	144,199			-2.5	%
Selected Data (In thousands $) and Ratios:
	Non-performing Loans		$	759			$	3,967			-80.9	%
	30 - 120 Days Delinquent Loans		$	-			$	40			-100.0	%
	Texas Ratio			7.13	%			48.34	%		-85.3	%
	Return on average assets			-0.13	%			-0.20	%		-35.1	%
	Return on average shareholders equity			-4.88	%			-8.36	%		-41.6	%
	Net interest margin			3.03	%			2.90	%		4.5	%
	Cost of Deposits			0.39	%			0.40	%		-2.5	%
	ALL to loans ratios			4.31	%			5.96	%		-27.8	%
	Net loans to deposits ratio			48.44	%			39.24	%		23.4	%
	Bank leverage capital ratio			5.89	%			5.34	%		10.3	%
	Bank total risk based capital ratio			12.64	%			12.39	%		2.0	%
	Employees (full time equivalent) (Not in thousands)			37				39			-5.1	%