Bank of Southern California, NA Announces Third Quarter 2018 Financial Results (OTC:BCAL)

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SAN DIEGO, Calif., Nov. 13, 2018 (SEND2PRESS NEWSWIRE) — Bank of Southern California, N.A. (OTC Pink: BCAL / OTCMKTS:BCAL) announced quarterly net income of $874,988 for the third quarter of 2018, compared to $1,088,043 for the third quarter of 2017. For the nine months ended September 30, 2018, net income was $3,253,441, compared to $2,830,295 for the nine months ended September 30, 2017. Results for the quarter and nine months ended September 30, 2018, include approximately $1.2 million and $1.6 million, respectively, in expenses related to the acquisition of Americas United Bank (OTC Pink: AUNB), which was completed on July 31, 2018.

Commenting on the recently completed acquisition of Americas United Bank, Nathan Rogge, President and CEO of Bank of Southern California said, “We are pleased to welcome Americas United Bank customers, employees, and shareholders to Bank of Southern California. We look forward to capitalizing on our newly expanded footprint and realizing greater efficiencies for the benefit of our shareholders, customers and the communities we serve.”

“In addition to leveraging Americas United Bank’s talented employees, we also hired several tenured and experienced commercial bankers to further expand on the small business opportunities in the market. We are well positioned to meet the needs of the Southern California business community and look forward to continued growth and success,” concluded Rogge.

Total assets at September 30, 2018, were $735 million, up 57% from $468 million at September 30, 2017. Total loans increased to $607 million at September 30, 2018, compared to $387 million at September 30, 2017, an increase of $219 million, while total deposits were $633 million at September 30, 2018, compared to $418 million at September 30, 2017, an increase of $215 million. The increase in total assets, loans and deposits is largely attributable to the acquisition of AUNB, which added approximately $190 million in loans and $203 million in deposits on July 31, 2018.

Other Financial Highlights

  • Net interest income for the quarter ended September 30, 2018, increased 27.5% to $6.7 million from $5.3 million in the prior quarter, primarily from the 26% increase in average earning assets. Net interest margin of 4.23% includes 6 basis points of fair valuation accretion, which is similar to prior quarters. Net interest income will increase, along with average earning assets, in the fourth quarter as we realize a full period post-merger and the relative impact of fair value accretion is also expected to increase in the fourth quarter.
  • Additional cost savings related to synergies from the acquisition of AUB, such as post-conversion data processing expenses, will continue to be realized in the fourth quarter.
  • Nonperforming assets were 0.51% of total assets at September 30, 2018, compared to 0.53% in the prior quarter. The allowance for loan losses (ALLL) was 0.65% of total loans at September 30, 2018, compared to 0.83% in the prior quarter; however, when including over $2.8 million in loan fair value credit marks (LFVCM), the ALLL and LFVCM represent 1.11% of total loans.
  • The Bank continues to be “well-capitalized”. After raising $26 million in capital earlier in 2018 and completing the merger July 31, 2018, the Bank reported total risk-based capital of 14.3% as of September 30, 2018, up from 13.5% at December 31, 2017.

[Quarterly Financial Highlights Table Follows]

For more details about our quarterly results, please visit the “About Us” / “Financials” page of our website – https://www.banksocal.com/about-us/financials/ – and follow the link labeled: Quarterly Results and Trends

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 and services to individuals, professionals, and small-to-mid 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, and the Coachella Valley in Riverside County, and a production office in Orange County.

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: Tony DiVita
Bank of Southern California
(858) 847-4783
tdivita@banksocal.com

 

Bank of Southern California

Quarterly Financial Highlights
(Unaudited)

Quarterly 9 Months YTD
($$ in thousands except per share data) 2018 2018 2018 2017 2017
3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2018 2017
EARNINGS
 Net interest income $ 6,736 5,282 4,851 4,711 4,802 16,869 13,041
 Provision for loan losses $ 450 400 300 0 0 1,150 271
 NonInterest income $ 577 602 1,098 799 380 2,277 1,410
 NonInterest expense $ 5,587 3,652 4,053 3,245 3,389 13,292 9,477
 Income tax expense $ 401 526 524 1,132 705 1,451 1,872
 Net income $ 875 1,306 1,072 1,134 1,088 3,253 2,830
 Basic earnings per share $ 0.11 0.19 0.20 0.22 0.21 0.49 0.55
 Average shares outstanding 7,689,827 6,991,327 5,281,297 5,221,606 5,219,095 6,654,150 5,179,196
 Ending shares outstanding 8,398,092 6,998,750 6,953,720 5,223,627 5,221,197 8,398,092 5,221,197
PERFORMANCE RATIOS
 Return on average assets 0.52% 1.00% 0.90% 0.95% 0.96% 0.77% 0.87%
 Return on average common equity 3.77% 6.85% 8.53% 9.08% 8.93% 5.93% 8.10%
 Yield on loans 5.30% 5.38% 5.13% 4.94% 5.39% 5.26% 5.08%
 Yield on earning assets 4.87% 4.78% 4.78% 4.62% 4.85% 4.78% 4.58%
 Cost of deposits 0.72% 0.62% 0.53% 0.47% 0.41% 0.63% 0.36%
 Net interest margin 4.23% 4.22% 4.27% 4.17% 4.46% 4.21% 4.24%
 Efficiency ratio 76.40% 62.06% 68.13% 58.87% 65.40% 69.42% 65.58%
CAPITAL
 Tangible equity to tangible assets 11.14% 14.54% 14.14% 10.10% 10.12% 11.14% 10.12%
 Book value (BV) per common share $ 11.77 11.00 10.79 9.51 9.31 11.77 9.31
 Tangible BV per common share $ 9.49 10.81 10.59 9.25 9.04 9.49 9.04
ASSET QUALITY
 Net loan charge-offs (recoveries) $ (29) 341 (9) 210 (106) 304 (95)
 Allowance for loan losses (ALLL) $ 3,922 3,443 3,385 3,076 3,286 3,922 3,286
 ALLL to total loans 0.65% 0.83% 0.83% 0.77% 0.85% 0.65% 0.85%
 Loan fair value credit marks (LFVCM) $ 2,834 681 759 779 847 2,834 847
 ALLL and LFVCM to total loans 1.11% 0.99% 1.01% 0.97% 1.07% 1.11% 1.07%
 Nonperforming loans $ 3,733 2,747 1,272 1,362 1,086 3,733 1,086
 Other real estate owned $ 0 0 0 0 0 0 0
 Nonperforming assets to total assets 0.51% 0.53% 0.24% 0.28% 0.23% 0.51% 0.23%
END OF PERIOD BALANCES
 Total loans $ 606,753 414,925 409,196 399,402 387,790 606,753 387,790
 Total assets $ 734,923 521,437 522,118 479,512 467,976 734,923 467,976
 Deposits $ 632,803 442,046 444,300 407,485 417,519 632,803 417,519
 Loans to deposits 95.88% 93.86% 92.10% 98.02% 92.88% 95.88% 92.88%
 Shareholders’ equity $ 98,865 77,006 75,016 49,698 48,619 98,865 48,619
 Full-time equivalent employees 94 65 73 76 63 94 63
AVERAGE BALANCES (QTRLY) | | (YTD)
 Total loans $ 540,165 407,779 403,693 394,864 359,961 452,590 349,090
 Earning assets $ 632,508 501,776 460,636 447,834 426,992 535,650 411,325
 Total assets (net of AFS valuation) $ 670,942 525,934 484,628 471,271 450,737 565,060 435,160
 Deposits $ 569,424 446,815 425,641 419,101 401,147 482,113 386,972
 Shareholders’ equity $ 92,091 76,440 50,983 49,548 48,325 73,322 46,704

 
Tickers: OTC Pink:BCAL / OTC:BCAL / OTCMKTS: BCAL / OP: BCAL / OTCMKTS:AUNB / OTC:AUNB

News Source: Bank of Southern California NA

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