IRVINE, Calif.--(BUSINESS WIRE)--

CalWest Bancorp (OTCBB: CALW), the holding company for CalWest Bank, (formerly known as South County Bank), today announced the consolidated financial results for the third quarter ended September 30, 2018.

Significant items for the period include:

• Net Interest Income was flat quarter-over-quarter, however up 23% year-over-year
• Non-Interest Income was flat quarter-over-quarter as Deposit Service Charge income decreased
• Non-Interest Expenses increased 16% quarter-over-quarter as a result of staff and location expansions
• Net Income decreased to $282k for the quarter, however YTD Net Income was 9% higher year-over-year
• Total Deposits increased $16 million during the quarter, and have increased YTD by $23.6 million or 16%
• 44% of Deposits are non-interest bearing, keeping our cost-of-deposits within 51 basis points
• Total Loans increased $5.2 million during the quarter and $17.5 million year-over-year
• Non-performing Assets are $23k and all are paying-as-agreed
• Allowance for Loan Losses to Gross Loans ratio was 1.78%

“During the third quarter our Non-Interest Expenses increased due to decisions made to increase our footprint in Orange County and San Diego County and to improve our presence in San Bernardino County. In July we opened a new state-of-art branch in Irvine, in August we opened a Loan Production Office in Laguna Niguel, added a Real Estate/Construction department in North San Diego County, and in August we boosted the presence of our Redlands branch with a new Branch Manager recruited from within that market,” noted Glenn Gray, President and CEO of CalWest Bancorp and CalWest Bank.

“We view the temporarily reduction in Net Income as an investment in our future and it has already been a catalyst for growth in core deposits. Year-over-year, core deposits, which represent 95% of total deposits, have increased by $23 million. This improved composition has allowed us to maintain our cost-of-deposits at 0.51%.”

CalWest Bancorp is the parent company of CalWest Bank, a community bank recognized for its exemplary service to entrepreneurs and high net worth individuals located throughout Southern California. The Bank serves the business community through its four full-service 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 CalWest 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 CalWest Bancorp's operations, pricing, products and services. CalWest 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.

View source version on businesswire.com: