Santa Cruz County Bank Reports Continued Growth in Profitability, Deposits and Loans For the Third Quarter Ended September 30, 2012 Total Assets Surpass $350 Million

Bank expands SBA Lending Team

SANTA CRUZ, Calif., Oct. 19, 2012 /PRNewswire/ -- Santa Cruz County Bank, (SCZC), a locally owned and operated full-service community bank headquartered in Santa Cruz County, today announced earnings for the third quarter ended September 30, 2012. The Bank reported net income of $784,659, which represents a 24% increase after taxes compared to the quarter ended June 30, 2012 and a 2% increase compared to the quarter ended September 30, 2011. Comparing nine-months ended September 30, 2012 to nine-months ended September 20, 2011, net income increased by $236,229, 13%, to $2.0 million.

Shareholders' equity for the period ended September 30, 2012 increased by $3.6 million, 14%, over the prior period ended September 30, 2011. Basic earnings per share for the nine-months ended September 30, 2012 were $1.04 as compared to $0.92 for the nine-months ended September 30, 2011.

SEPTEMBER 30, 2012 COMPARED TO SEPTEMBER 30, 2011
Total deposits increased $34.4 million, 12% to $319.3 million
Gross loans increased $29.5 million, 17% to $206.7 million
Total assets increased $38.2 million, 12% to $352.0 million
Quarterly net income increased $18 thousand, 2% to $784.7 thousand

Non-interest bearing deposits represented 44% of total deposits as of September 30, 2012. 

David Heald, President and CEO commented, "Customer referrals and expansion of existing relationships has bolstered deposits, resulting in our total assets surpassing $350 million. The Bank's record earnings is a result of management and the Board of Directors' commitment to growing a quality loan portfolio while maintaining efficiencies in all operating areas of the Bank. We expect continued growth in our loan portfolio through targeted marketing efforts by our team of experienced bankers and the recent expansion of our SBA lending team."

THIRD QUARTER HIGHLIGHTS:

Santa Cruz County Bank received a 4-Star "Excellent" rating from Bauer Financial Reports, Inc. for its second quarter 2012 performance.

The Bank announced Sati Kanwar joined the Bank as Senior Vice President, SBA Business Development Officer. Mr. Kanwar is an experienced and well known veteran SBA lender in the Bank's market place.

Loans grew by $3.3 million in the third quarter on $16 million in new production ($25 million in commitments) through the focused efforts of our Relationship Officers.

ABOUT SANTA CRUZ COUNTY BANK

Headquartered in Santa Cruz, Santa Cruz County Bank is a full-service bank serving the banking needs of individuals and businesses throughout Santa Cruz County.  The Bank operates five full-service banking offices and two self-serve banking centers. The Bank's full-service banking offices are located in Aptos, Capitola, Santa Cruz, Scotts Valley and Watsonville. The Bank commenced operations on February 3, 2004 in Santa Cruz.

Santa Cruz County Bank's common stock is listed on the Over the Counter (OTC) Bulletin Board under the stock symbol SCZC. More information on the Bank may be obtained through its website: www.sccountybank.com or by calling 831.457.5000.

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 fluctuations 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)

September 30, 2012














Change




Change


Quarter ended 9/30/12

Quarter ended 9/30/11

$

%


Year ended 12/31/11


$

%











Balance Sheet




















  Total assets

$        352,000,974

$        313,850,937

$               38,150,037

12%


$      320,230,204


$ 31,770,770

10%

  Gross loans

206,707,859

177,249,886

29,457,973

17%


191,369,556


15,338,303

8%

  Allowance for loan losses

4,846,966

4,013,614

833,352

21%


4,305,290


541,676

13%

  Non interest-bearing deposits

141,955,724

109,682,502

32,273,222

29%


113,014,682


28,941,042

26%

  Total deposits

319,347,043

284,906,192

34,440,851

12%


288,206,914


31,140,129

11%

  Shareholders' equity

29,119,860

25,554,038

3,565,822

14%


26,285,044


2,834,816

11%











Income Statement








Change







Nine-months ended 9/30/12

Nine-months ended 9/30/11

$

%

  Interest income

3,448,191

3,222,547

225,644

7%


10,225,169

$         9,622,073

$      603,096

6%

  Interest expense

110,482

145,094

(34,612)

-24%


351,681

447,109

(95,428)

-21%

  Net interest income

3,337,709

3,077,453

260,256

8%


9,873,488

9,174,964

698,524

8%











  Provision for loan losses

194,000

230,000

(36,000)

-16%


794,000

1,112,500

(318,500)

-29%

  Non-interest income

784,767

1,079,556

(294,789)

-27%


1,884,290

2,728,057

(843,767)

-31%

  Non-interest expense

2,720,724

2,602,802

117,922

5%


7,848,574

7,859,622

(11,048)

0%

  Net income before taxes

1,207,752

1,324,207

(116,455)

-9%


3,115,204

2,930,899

184,305

6%

  Income tax expense

423,093

557,593

(134,500)

-24%


1,123,858

1,175,782

(51,924)

-4%

  Net income after taxes

$               784,659

$               766,614

18,045

2%


$          1,991,346

$         1,755,117

236,229

13%











BASIC EARNINGS PER SHARE

$                     0.40

$                     0.40




$                   1.04

$                  0.92



  BOOK VALUE PER SHARE

$                   14.81

$                   13.10




$                 14.81

$                13.10













Ratios










  Net interest margin

4.11%

4.14%




4.24%

4.48%



  Equity capital-to-total assets

8.3%

8.1%




8.2%

NA























  % of non interest bearing to total deposits 

44%

38%




39%

NA



SOURCE Santa Cruz County Bank



RELATED LINKS
http://www.sccountybank.com

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