8-K 1 earningsrelease123105.htm BWCF EARNINGS RELEASE FOR EOY 2005

January 2006

Walnut Creek, CA . . .

Contact: James L. Ryan

Bank of Walnut Creek

(925) 932-5353 Ext. 200

 

BWC FINANCIAL CORP. ANNOUNCES FOURTH QUARTER & YEAR END 2005 EARNINGS

 

James L. Ryan, Chief Executive Officer and Chairman of the Board of BWC Financial Corp. and its subsidiaries Bank of Walnut Creek and BWC Mortgage Services, announced Fourth Quarter and Year End 2005 earnings.

Net income for the Corporation for the year ending December 31, 2005 was $8,646,000 or $2.04 diluted earnings per share, compared to net income of $5,713,000 or $1.32 diluted earnings per share at Year End 2004.

Earnings for the Year 2005 represent a return on average assets (ROA) of 1.61% and a return on average equity (ROE) of 17.69%, compared to an ROA of 1.15% and an ROE of 12.39% for the Year 2004.

Fourth Quarter 2005 income was $2,655,000 or $0.63 diluted earnings per share compared to Fourth Quarter 2004 income of $1,855,000 or $0.43 diluted earnings per share. Earnings for Fourth Quarter 2005 represent a return on average assets (ROA) of 1.90 % and a return on average equity (ROE) of 21.20% compared to a 1.44% ROA and a 15.82% ROE for Fourth Quarter 2004.

Total assets of the Corporation at December 31, 2005 were $549,698,000, compared to total assets of $501,358,000 at Year End 2004.

Founded in 1980 and celebrating its 25th Anniversary Year in 2005, Bank of Walnut Creek’s headquarters and main office are at 1400 Civic Drive, Walnut Creek. Additional branch offices are in Orinda, San Ramon, Danville, Pleasanton, and Livermore, with a regional commercial banking office in San Jose. BWC Mortgage Services, with headquarters at 3130 Crow Canyon Place in San Ramon, has mortgage consultants in each of the Bank’s branch offices and additional offices in Walnut Creek, Concord, Tahoe City, Monterey, Tracy, Reno and Las Vegas.

Additional details may be found in the Summary of Consolidated Financial Results for Year End and Fourth Quarter 2005.

 

Selected Financial Data - Summary:

 

 

 

 

The following table provides certain selected consolidated financial data as of and for the three

 

month and twelve-month periods ended December 31, 2005 and 2004.

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Year to Date

SUMMARY INCOME STATEMENT

 

December 31,

 

December 31,

( Unaudited in thousands except share data)

2005

2004

2005

2004

Interest Income

$ 9,964

$ 8,204

$ 36,391

$ 29,541

Interest Expense

2,297

1,600

8,042

5,280

Net Interest Income

7,667

6,604

28,349

24,261

Provision for Credit Losses

-

-

-

975

Non-interest Income

5,455

3,713

19,167

15,327

Non-interest Expenses

8,474

7,135

32,230

28,443

Minority Interest

328

239

1,220

1,013

EBIT

4,320

2,943

14,066

9,157

Income Taxes

1,665

1,088

5,420

3,444

Net Income

$ 2,655

$ 1,855

$ 8,646

$ 5,713

 

 

 

 


 

 

 

Per share:

 

Quarter Ended

 

Year to Date

(Share and share equivalents have been adjusted for the

 

December 31,

 

December 31,

10 % stock dividend granted in December 2004)

2005

2004

2005

2004

Basic EPS

$ 0.64

$ 0.44

$ 2.07

$ 1.33

Diluted EPS

$ 0.63

$ 0.43

$ 2.04

$ 1.32

Weighted Average Basic shares

4,133,837

4,239,260

4,182,661

4,280,595

Weighted Average Diluted Shares

4,202,149

4,283,311

4,243,316

4,316,256

Cash dividends

$ 370

$ 307

$ 1,420

$ 1,011

Book value at period end

 

 

$ 12.37

$ 11.18

Ending shares

 

 

4,128,829

4,228,459

 

 

 

 

 

 

 

Quarter Ended

 

Year to Date

 

 

December 31,

 

December 31,

SELECTED PERFORMANCE RATIOS

2005

2004

2005

2004

Return on Average Assets

1.90%

1.44%

1.61%

1.15%

Return on Average Equity

21.20%

15.82%

17.69%

12.39%

Net Interest Margin to Earning Assets

5.58%

5.42%

5.61%

5.16%

Net loan losses (recoveries) to avg. loans

0.00%

0.04%

0.05%

0.00%

Efficiency Ratio (Bank only)

50.20%

58.10%

55.49%

62.80%

 

 

 

 

 

SUMMARY BALANCE SHEET

 

 

 

 

In thousands

 

December 31,

 

December 31,

Assets:

 

2005

 

2004

Cash and Equivalents

 

$ 19,035

 

$ 18,988

Investments

 

106,704

 

80,066

Loans

 

402,972

 

380,682

Allowance for Credit Losses

 

(7,493)

 

(7,670)

BWC Mortgage Services, Loans Held-for-Sale

 

12,794

 

14,966

Other Assets

 

15,686

 

14,326

Total Assets

 

$ 549,698

 

$ 501,358

 

 

 

 

 

Deposits

 

$ 423,380

 

$ 392,939

Other Borrowings

 

70,537

 

57,824

Other Liabilities

 

4,693

 

3,314

Total Liabilities

 

$ 498,610

 

$ 454,077

Equity

 

51,088

 

47,281

Total Liabilities and Equity

 

$ 549,698

 

$ 501,358

 

#####

Nasdaq: BWCF

http://www.bowc.com

 

This press release contains forward-looking statements with respect to the financial condition, results of operation and business of BWC Financial Corp.(BWC). These include statements that relate to or are dependent on estimates or assumptions relating to the prospects of continued loan and deposit growth, improved credit quality, the operating characteristics of the Company’s income tax refund programs and the economic conditions within its markets. These forward-looking statements involve certain risks and uncertainties, many of which are beyond the Company’s control. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) increased competitive pressure among financial services companies; (2) changes in the interest rate environment reducing interest margins or increasing interest rate risk; (3) deterioration in general economic conditions, internationally, nationally or in the State of California; (4) the occurrence of future terrorist acts or impact of military actions;and (5) legislative or regulatory changes adversely affecting the business in which BWC engages. Forward-looking statements speak only as of the date they are made, and BWC does not undertake to update forward-looking statements. 1/00/06