55% Increase in Quarterly Profit - Santa Cruz County Bank Reports Unaudited Results for the Fourth Quarter and the Year Ended December 31, 2010
Bank reports record year end profits
SANTA CRUZ, Calif., Jan. 24, 2011 /PRNewswire/ -- Santa Cruz County Bank, (OTC Bulletin Board: SCZC), a locally owned and operated full-service community bank headquartered in Santa Cruz County, today announced record earnings for the fourth quarter and fiscal year ending December 31, 2010. For the twelve month period ended December 31, 2010, the bank reported net income after tax of $1.79 million compared to $203 thousand for the same period ended December 31, 2009, an improvement of $1.6 million. Pretax income improved by $2.6 million to $3.0 million comparing December 31, 2009 to December 31, 2010. Net interest income for the twelve month period ended December 31, 2010 improved by $1.7 million over the prior year to $11.7 million.
David Heald, President and CEO commented, "Significant gains in net income and net interest income were the result of the bank's focus on loan generation through its ongoing personalized style of cultivating relationships with business owners and its continued focus on lowering interest expense. Additionally, due to market opportunities, the bank secured gains in its securities portfolio, booked those profits and reinvested the gains into better earning assets."
Shareholders' equity for the year ended December 31, 2010 increased by $3.9 million over the prior year ended December 31, 2009. The change in shareholders' equity primarily resulted from the successful addition of $2.5 million in capital though a local private stock offering in 2010 and generation of recurring net income before securities gains.
FOURTH QUARTER: DECEMBER 31, 2010 COMPARED TO SEPTEMBER 30, 2010 | |
Total deposits decreased $11.7 million, -4% to $253.4 million | |
Gross loans increased $14.6 million, 9% to $181.5 million | |
Total assets decreased $8.3 million, -3%, to $284.8 million | |
Net income increased $247.4 thousand, 55%, to $700.3 thousand | |
YEAR TO YEAR: DECEMBER 31, 2010 COMPARED TO DECEMBER 31, 2009 | |
Total deposits increased $14.1 million, 6% to $253.4 million | |
Gross loans increased $24.9 million, 16% to $181.5 million | |
Total assets increased $19.7 million, 7%, to $284.8 million | |
Net income increased $1.6 million, 782%, to $1.8 million | |
The bank's non-interest income increased $785.6 thousand to $2.8 million as of December 31, 2010 compared to the prior year. The bank also made significant strides in accomplishing its initial strategy to build a strong recurring base of non-interest income as a result of growing its customer base, government guaranteed loan programs and loan servicing.
Non-interest bearing deposits represented 37% of total deposits as of December 31, 2010. During the fourth quarter the bank chose to reduce a portion of interest bearing government related deposits which resulted in a quarterly decrease in total assets and deposits. This further reduced the bank's interest cost.
David Heald, President and CEO stated, "In 2010 we surpassed $180 million in gross loans; $250 million in deposits, $280 million in assets and recorded record profits. In addition, we successfully raised $2.5 million in capital through a local private offering of our stock. Our milestones in 2010 highlight the community's support of its local bank."
For the past nine consecutive quarters Santa Cruz County Bank has been rated a 4-Star "excellent" bank by Bauer Financial Services for its financial performance.
ANNUAL MEETING NOTICE
The Bank's Annual Meeting of Shareholders will be held on May 17, 2011 at Bittersweet Bistro at 3:00 p.m. Pacific Daylight Time.
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, all of which have received a Green Business Certification Award by the Monterey Bay Area Green Business Program. 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 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) December 31, 2010 | |||||||||||
Change | Change | ||||||||||
Quarter ended 12/31/10 | Quarter ended 9/30/10 | $ | % | Year ended 12/31/10 | Year ended 12/31/09 | $ | % | ||||
Balance Sheet | |||||||||||
Total assets | $ 284,817,640 | $ 293,135,211 | $ (8,317,571) | -3% | $ 284,817,640 | $ 265,105,193 | $ 19,712,447 | 7% | |||
Gross loans | 181,450,788 | 166,812,652 | 14,638,136 | 9% | 181,450,788 | 156,525,733 | 24,925,055 | 16% | |||
Allowance for loan losses | 3,558,521 | 3,515,415 | 43,106 | 1% | 3,558,521 | 2,898,478 | 660,043 | 23% | |||
Non interest-bearing deposits | 94,326,653 | 95,912,626 | (1,585,973) | -2% | 94,326,653 | 75,895,196 | 18,431,457 | 24% | |||
Total deposits | 253,416,044 | 265,159,044 | (11,743,000) | -4% | 253,416,044 | 239,303,637 | 14,112,407 | 6% | |||
Shareholders' equity | 23,537,951 | 20,968,366 | 2,569,585 | 12% | 23,537,951 | 19,592,977 | 3,944,974 | 20% | |||
Income Statement | Change | ||||||||||
Year-to-date 12/31/10 | Year-to-date 12/31/09 | $ | % | ||||||||
Interest income | $ 3,244,152 | 3,167,389 | 76,763 | 2% | $ 12,653,202 | $ 11,612,463 | $ 1,040,739 | 9% | |||
Interest expense | 190,541 | 219,241 | (28,700) | -13% | 968,882 | 1,591,415 | (622,533) | -39% | |||
Net interest income | 3,053,611 | 2,948,148 | 105,463 | 4% | 11,684,320 | 10,021,048 | 1,663,272 | 17% | |||
Provision for loan losses | 348,901 | 300,000 | 48,901 | 16% | 1,200,000 | 1,250,196 | (50,196) | -4% | |||
Non-interest income | 1,055,464 | 628,662 | 426,802 | 68% | 2,764,689 | 1,979,111 | 785,578 | 40% | |||
Non-interest expense | 2,616,612 | 2,523,988 | 92,624 | 4% | 10,252,687 | 10,388,305 | (135,618) | -1% | |||
Net income before taxes | 1,143,562 | 752,822 | 390,740 | 52% | 2,996,322 | 361,658 | 2,634,664 | 728% | |||
Income tax expense/(credit) | 443,277 | 299,941 | 143,336 | 48% | 1,206,027 | 158,787 | 1,047,240 | 660% | |||
Net income after taxes | $ 700,285 | $ 452,881 | 247,404 | 55% | $ 1,790,295 | $ 202,871 | 1,587,424 | 782% | |||
Ratios | |||||||||||
Net interest margin | 4.43% | 4.30% | 4.47% | 4.36% | |||||||
Equity capital-to-total assets | 8.3% | 7.2% | 8.3% | 7.4% | |||||||
SOURCE Santa Cruz County Bank
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