Rancho Santa Margarita-based CalWest Bancorp reported net income of $36,000 for the second quarter, a turnaround from a year-ago loss of $278,000.

Quarterly net interest income for the holding company of South County Bank N.A. totaled $1.1 million, slightly down from a year-earlier $1.2 million.

Non-interest income increased 34% to $494,000 from $369,000.

Profit for the first six months of the year swung to $169,000 from a loss of $694,000 in the same period last year.

Net interest income totaled $2.3 million, about flat from last year.

Non-interest income for the first half of the year was $913,000, up 31% from $695,000.

The bank now has about $150.8 million in assets, down about 10% from last June.

It has $139.5 million in total deposits, also down 10%.

Loans shrank about 16% compared with a year earlier, to $75.4 million as of the end of June.

Bad loans declined substantially since last June.

Non-performing loans were $5.9 million, about half the total a year earlier.

Delinquent loans were $28,000, down 98% from $1.6 million last year.