Bank of Southern California N.A.

SAN DIEGO, Calif., Nov 13, 2018 (SEND2PRESS NEWSWIRE) — Bank of Southern California, N.A. (OTC Pink: 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)

  Quarterly9 Months YTD
($$ in thousands except per share data)2018 2018 2018 2017 2017
3rd Qtr2nd Qtr1st Qtr4th Qtr3rd Qtr2018 2017
EARNINGS
 Net interest income$6,7365,2824,8514,7114,80216,86913,041
 Provision for loan losses$450400300001,150271
 NonInterest income$5776021,0987993802,2771,410
 NonInterest expense$5,5873,6524,0533,2453,38913,2929,477
 Income tax expense$4015265241,1327051,4511,872
 Net income$8751,3061,0721,1341,0883,2532,830
 Basic earnings per share$0.110.190.200.220.210.490.55
 Average shares outstanding7,689,8276,991,3275,281,2975,221,6065,219,0956,654,1505,179,196
 Ending shares outstanding8,398,0926,998,7506,953,7205,223,6275,221,1978,398,0925,221,197
PERFORMANCE RATIOS
 Return on average assets0.52%1.00%0.90%0.95%0.96%0.77%0.87%
 Return on average common equity3.77%6.85%8.53%9.08%8.93%5.93%8.10%
 Yield on loans5.30%5.38%5.13%4.94%5.39%5.26%5.08%
 Yield on earning assets4.87%4.78%4.78%4.62%4.85%4.78%4.58%
 Cost of deposits0.72%0.62%0.53%0.47%0.41%0.63%0.36%
 Net interest margin4.23%4.22%4.27%4.17%4.46%4.21%4.24%
 Efficiency ratio76.40%62.06%68.13%58.87%65.40%69.42%65.58%
CAPITAL
 Tangible equity to tangible assets11.14%14.54%14.14%10.10%10.12%11.14%10.12%
 Book value (BV) per common share$11.7711.0010.799.519.3111.779.31
 Tangible BV per common share$9.4910.8110.599.259.049.499.04
ASSET QUALITY
 Net loan charge-offs (recoveries)$(29)341(9)210(106)304(95)
 Allowance for loan losses (ALLL)$3,9223,4433,3853,0763,2863,9223,286
 ALLL to total loans0.65%0.83%0.83%0.77%0.85%0.65%0.85%
 Loan fair value credit marks (LFVCM)$2,8346817597798472,834847
 ALLL and LFVCM to total loans1.11%0.99%1.01%0.97%1.07%1.11%1.07%
 Nonperforming loans$3,7332,7471,2721,3621,0863,7331,086
 Other real estate owned$0000000
 Nonperforming assets to total assets0.51%0.53%0.24%0.28%0.23%0.51%0.23%
END OF PERIOD BALANCES
 Total loans$606,753414,925409,196399,402387,790606,753387,790
 Total assets$734,923521,437522,118479,512467,976734,923467,976
 Deposits$632,803442,046444,300407,485417,519632,803417,519
 Loans to deposits95.88%93.86%92.10%98.02%92.88%95.88%92.88%
 Shareholders’ equity$98,86577,00675,01649,69848,61998,86548,619
 Full-time equivalent employees94657376639463
AVERAGE BALANCES (QTRLY) | | (YTD)
 Total loans$540,165407,779403,693394,864359,961452,590349,090
 Earning assets$632,508501,776460,636447,834426,992535,650411,325
 Total assets (net of AFS valuation)$670,942525,934484,628471,271450,737565,060435,160
 Deposits$569,424446,815425,641419,101401,147482,113386,972
 Shareholders’ equity$92,09176,44050,98349,54848,32573,32246,704

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

News Source: Bank of Southern California NA

Related link: https://www.banksocal.com/

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