Lighthouse Bank Growth Continues, Posts Strong Performance in 2010

SANTA CRUZ, Calif., Jan. 24, 2011 /PRNewswire/ -- Locally owned Lighthouse Bank (OTC Bulletin Board: LGHT) posted a $229 thousand profit for the 4th quarter ended December 31, 2010, representing the sixth consecutive quarter of profitable operations and record quarterly earnings for the three year old Bank.  Profit for the fiscal year ended December 31, 2010 was $647 thousand with total assets increasing to $116.8 million.  For the 12-month period, shareholders' equity increased by $906 thousand to $17.3 million.  The Bank continued to experience solid growth in loans and deposits which year over year increased by $14.0 million and $25.7 million, respectively.  In September of 2010, Lighthouse Bank was granted Preferred Lender (PLP) Status by the Small Business Administration.  As a Preferred Lender, the Bank is permitted to make decisions on behalf of the SBA which significantly shortens the loan approval process.  This accomplishment highlights the Bank's focus on expanding business lending within Santa Cruz County.

Lighthouse Bank has maintained capital that is substantially in excess of the "well capitalized" designation established by financial regulators.  The Bank's loan loss reserve is also conservatively maintained at 2.78% of gross loans which is well above the industry standard.  The loan loss reserve was increased by $541 thousand during the year as a result of loan growth.  The increased reserve was not the result of deterioration in loan quality. During its three years of operation, Lighthouse Bank has not experienced a loan loss.  The Bank had one past due loan in excess of 30 days at 12-31-10, which is now current.  Total nonperforming assets of $2.6 million consist of three pieces of residential real estate owned by the Bank.  All the properties are listed for sale, the largest of which is under contract for sale.  No future losses are anticipated from the disposition of these assets.

ABOUT LIGHTHOUSE BANK:

Lighthouse Bank is a locally owned and operated commercial bank located in Santa Cruz, CA. The Bank offers a full array of banking products and services to businesses, professionals, individuals, developers, and commercial property owners. Lighthouse Bank is committed to operating an open, ethical and financially successful company. All decisions are intended to contribute to the long-term success of its clients, employees, owners and the community it serves. The Bank moved into profitable operations without accepting government assistance of any kind, while shouldering the burden of increased FDIC Insurance premiums brought about by the failures within the industry.

Lighthouse Bank is located at 111 Mission Street in Downtown Santa Cruz, Ca. Lighthouse Bank's common stock is listed on the Over-the-Counter (OTC) Bulletin Board under the stock symbol LGHT.OB. More Information on the Bank may be obtained through its website www.lighthousebank.net or by calling 831-600-4000.

This release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuation in interest rates, inflation, government regulations and general economic conditions, and competition within the business areas in which the Bank is conducting its operations, including the real estate market in California and other factors beyond the Bank's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward looking statements, which reflect management's view only as of the date hereof. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.


 Selected Financial Data (unaudited)


Quarter-Ended



Quarter-ended



Year-to-Date Ended



12/31/2010

9/30/2010

%


12/31/2009

%


12/31/2010

12/31/2009

%












Balance Sheet






















Total assets

$     116,829,629

$     106,370,537

10%


$     91,154,618

28%





Gross loans

69,185,059

67,796,965

2%


55,137,090

25%





Allowance for loan losses

1,925,000

1,764,000

9%


1,384,000

39%





Non interest-bearing deposits

20,258,708

15,657,196

29%


12,454,194

63%





Total deposits

96,178,830

85,982,978

12%


70,473,764

36%





Shareholders' equity

17,289,676

17,023,894

2%


16,384,010

6%
















Income Statement






















Interest income

1,435,184

1,322,679

9%


1,147,139

25%


5,227,876

4,324,523

21%

Interest expense

172,171

171,626

0%


202,655

-15%


699,979

768,035

-9%

Net interest income

1,263,013

1,151,053

10%


944,484

34%


4,527,897

3,556,488

27%






-






Provision for loan losses

161,000

105,000

53%


109,000

48%


541,000

413,000

31%

Non-interest income

32,242

144,234

-78%


40,757

-21%


339,936

135,304

151%

Non-interest expense

904,805

974,913

-7%


837,703

8%


3,680,014

3,475,375

6%












Net income (loss)

$     229,450

$      215,374

7%


$     38,538

495%


$     646,819

$     (196,583)

429%












Net income (loss) excluding loan loss provisions

$     390,450

$     320,374

22%


$     147,538



$     1,187,819

$     216,417

449%












Ratios











Net interest margin

4.58%

4.55%



4.56%






Equity capital-to-total assets

14.8%

16.0%



18.0%









SOURCE Lighthouse Bank



RELATED LINKS
http://www.lighthousebank.net

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