TransWorld Bancorp Posts Record Earnings

TransWorld Bancorp, Sherman Oaks-based parent of TransWorld Bank, reported record net income of $2.57 million for 1994, an 86% increase from a $1.38-million profit in 1993.

The bank, which has 10 branches in Southern California, said 1994 earnings would have been even higher were it not for a $300,000 charge in the first quarter to cover earthquake damage repairs. For the fourth quarter that ended Dec. 31, the bank posted earnings of $912,000, up 86% from $490,000 in the same three-month period a year earlier.

“The significant improvement in earnings resulted from both improved interest margins and higher earning asset levels,” said David H. Hender, chief executive of the bank. Interest margins are the profit-generating difference between rates banks charge borrowers and the rates they pay depositors and other creditors.

The bank reported total assets of $371 million as of Dec. 31, up 18% from $313 million a year earlier. Non-performing assets, which include delinquent loans and other troubled assets, rose slightly to $3.63 million from $3.61 million a year earlier.

TransWorld said its board of directors has approved a 2-for-1 stock split payable March 7 for shareholders of record as of Feb. 24.

TransWorld also said it has hired Thomas Odegard as vice president and manager of the bank’s Chatsworth office. Odegard previously served as manager at two branches of First State Bank of the Oaks in the Conejo Valley.