SAN DIEGO, Calif., July 24, 2019 (SEND2PRESS NEWSWIRE) — Bank of Southern California, N.A. (OTC Pink: BCAL) today reported results for the second quarter ended June 30, 2019. Total assets were $767 million for the second quarter of 2019, a 47% increase compared to the second quarter of 2018. Quarterly net income increased 20% to $1.57 million compared to $1.31 million in Q2 of 2018. Total loans ended the quarter at $623 million and total deposits were $632 million.

Second Quarter 2019 Highlights

  • Enhanced market presence in Los Angeles, Orange and Riverside counties, including the addition of seasoned, relationship-focused bankers
  • 2019 loan growth slows, despite new production, primarily driven by higher loan prepayments and real estate secured loan payoffs
  • Repositioning of deposit portfolio focused on lower cost and noninterest-bearing core deposits
  • Year over year comparisons are affected by the acquisition of Americas United Bank (“AUB”) on July 31, 2018.

Bank of Southern California N.A.
Nathan Rogge, President and CEO of Bank of Southern California said, “We remain focused on executing our strategy, achieving long-term growth and supporting Southern California’s business community. During the second quarter, we expanded in Orange County with the opening of a regional office and full-service banking center in the City of Orange.”

“This strategic commitment to the region is further supported through the hiring of several relationship-focused Bankers in key markets in Southern California, including Los Angeles, Orange, and Riverside counties. The Bank has built a strong foundation to support its efforts to become a leading community business bank in Southern California, and is well-positioned for growth,” concluded Rogge.

The Bank continues to emphasize core banking products and services while delivering upon an enhanced customer experience. Organic noninterest-bearing demand deposit growth increased $6.8 million during the quarter, and a $20.3 million increase since December 2018.

John Farkash, Chairman of the Board said, “Overall, the Bank reported meaningful results for the second quarter. The Bank continues to have a strong and well-capitalized balance sheet positioning the Bank to deliver greater value to our shareholders and achieving long-term growth.”

Additional Financial Highlights

  • Total Loans declined $5 million during the quarter to $623 million at quarter end, primarily driven by higher loan prepayments and real estate secured loan payoffs. Total loans paid were $32 million during Q2 2019, and total $62 million year-to-date. Despite the decline in loans outstanding, new C&I loan commitments increased $17 million year-to-date, from $160 million at December 31, 2018 to $177 million at June 30, 2019.
  • The Bank has been focused on repositioning its deposit portfolio mix toward more core deposits. While total deposits have been flat since December 2018, noninterest-bearing deposits have grown by 12%, offset by a decline of 12% in more costly time deposits. The Bank will continue to reposition and improve the deposit portfolio with the longer-term goal of protecting net interest margin.
  • Nonperforming assets were 0.27% of total assets at June 30, 2019, compared to 0.60% at December 31, 2018. The allowance for loan losses (ALLL) was 0.78% of total loans at June 30, 2019, up from 0.69% at December 31, 2018. When including $2.2 million in loan fair value credit marks (LFVCM), the ALLL and LFVCM represent 1.14% 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 6 Months YTD
($$ in thousands except per share data) 2019 2019 2018 2018 2018
2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 2019 2018
EARNINGS
 Net interest income $ 7,625 7,698 8,031 6,736 5,282 15,323 10,133
 Provision for loan losses $ 200 300 450 450 400 500 700
 NonInterest income $ 519 420 526 577 602 939 1,701
 NonInterest expense $ 5,705 5,198 5,279 5,587 3,652 10,902 7,705
 Income tax expense $ 667 771 823 401 526 1,438 1,050
 Net income $ 1,572 1,849 2,005 875 1,306 3,421 2,378
 Basic earnings per share $ 0.19 0.22 0.24 0.11 0.19 0.41 0.39
 Average shares outstanding 8,410,522 8,409,272 8,402,251 7,689,827 6,991,327 8,409,897 6,136,312
 Ending shares outstanding 8,410,522 8,410,522 8,408,022 8,398,092 6,998,750 8,410,522 6,998,750
PERFORMANCE RATIOS
 Return on average assets 0.82% 0.99% 1.07% 0.52% 1.00% 0.91% 0.95%
 Return on average common equity 6.02% 7.30% 7.91% 3.77% 6.85% 6.65% 7.52%
 Yield on loans 5.59% 5.66% 5.63% 5.30% 5.38% 5.63% 5.26%
 Yield on earning assets 5.24% 5.36% 5.40% 4.87% 4.78% 5.30% 4.78%
 Cost of deposits 0.98% 0.96% 0.84% 0.72% 0.62% 0.97% 0.58%
 Net interest margin 4.28% 4.41% 4.59% 4.23% 4.22% 4.34% 4.25%
 Efficiency ratio 70.05% 64.03% 61.70% 76.40% 62.06% 67.04% 65.11%
CAPITAL
 Tangible equity to tangible assets 11.62% 11.29% 11.01% 11.14% 14.54% 11.62% 14.54%
 Book value (BV) per common share $ 12.56 12.30 12.06 11.77 11.00 12.56 11.00
 Tangible BV per common share $ 10.34 10.07 9.81 9.49 10.81 10.34 10.81
ASSET QUALITY
 Net loan charge-offs (recoveries) $ (9) (7) (0) (29) 341 (15) 333
 Allowance for loan losses (ALLL) $ 4,888 4,679 4,373 3,922 3,443 4,888 3,443
 ALLL to total loans 0.78% 0.74% 0.69% 0.65% 0.83% 0.78% 0.83%
 Loan fair value credit marks (LFVCM) $ 2,249 2,479 2,594 2,834 681 2,249 681
 ALLL and LFVCM to total loans 1.14% 1.14% 1.10% 1.11% 0.99% 1.14% 0.99%
 Nonperforming loans $ 2,033 3,298 4,574 3,733 2,747 2,033 2,747
 Other real estate owned $ 0 0 0 0 0 0 0
 Nonperforming assets to total assets 0.27% 0.43% 0.60% 0.51% 0.53% 0.27% 0.53%
END OF PERIOD BALANCES
 Total loans $ 623,424 628,538 634,651 606,753 414,925 623,424 414,925
 Total assets $ 766,730 768,823 767,948 734,923 521,437 766,730 521,437
 Deposits $ 632,246 635,676 627,816 632,803 442,046 632,246 442,046
 Loans to deposits 98.60% 98.88% 101.09% 95.88% 93.86% 98.60% 93.86%
 Shareholders’ equity $ 105,619 103,481 101,360 98,865 77,006 105,619 77,006
 Full-time equivalent employees 100 96 94 94 65 100 65
AVERAGE BALANCES (QTRLY) | | (YTD)
 Total loans $ 623,541 629,799 627,544 540,165 407,779 626,653 405,747
 Earning assets $ 714,889 707,920 694,190 632,508 501,776 711,296 481,320
 Total assets (net of AFS valuation) $ 766,960 755,842 741,463 670,942 525,934 761,432 505,395
 Deposits $ 633,478 628,950 626,433 569,424 446,815 631,226 436,287
 Shareholders’ equity $ 104,745 102,707 100,500 92,091 76,440 103,731 63,782

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

News Source: Bank of Southern California NA