Lighthouse Bank Continues Streak Of Record Earnings

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Jul 19, 2013, 04:00 ET

SANTA CRUZ, Calif., July 19, 2013 /PRNewswire/ -- Locally owned Lighthouse Bank (OTC Bulletin Board: LGHT) today released unaudited financial results for the 2^nd quarter ended June 30, 2013. The Bank posted a $560 thousand profit for the period, representing the 16^th successive quarter of profitable operations and record quarterly earnings for the five-year old bank. Lighthouse Bank has posted consecutive record earnings for each of the past 14 quarters. For the period, earnings surpassed the record set for the quarter ended March 31, 2013, and represented a 26% increase in earnings compared to the same period ended June 30, 2012. Shareholders' equity increased by $451 thousand to $21.6 million during the 2^nd quarter of 2013. The Bank experienced solid growth in loans, up 11% from June 30, 2012. Deposits decreased 2% year-over-year, due to the departure of a single multimillion dollar short-term account during the 1^st quarter of 2013. Overall positive performance continued to be driven by the Bank's control of overhead expenses and growth in the loan portfolio.

The Bank's loan loss reserve of 2.82% of gross loans remained significantly above the industry average of 1.75% for banks under $1 billion in size. The Bank had only one past due loan in excess of 30 days at June 30, 2013 and has experienced no loan losses year-to-date. As a result of the payoff of the Bank's sole nonperforming loan, no material additions were made to the loan loss reserve during the quarter. Since opening in 2007, Lighthouse Bank's cumulative net loan losses have totaled only $187 thousand. Total nonperforming assets of $349 thousand consist of a single residential property owned by the Bank and represent only .2% of total assets. This property is currently listed for sale.

During the quarter, veteran lender Kristin Ditlevsen joined the Lighthouse Bank team as Senior Vice President, Lending Group Manager. This and other staff additions made earlier in the year represent planning in connection with the anticipated growth of the company.

Lighthouse Bank's consistently strong financial performance continues to place it among industry leaders. The Bank is currently rated by Bauer Financial as 5-Star "Superior", the top rating given by the independent bank rating firm. The Findley Reports, a well known banking publication named Lighthouse Bank as a "Super Premier "performing bank, their highest ranking and FMC Consulting named Lighthouse Bank the top rated state chartered Bank on the Central Coast. Lighthouse Bank has no financial relationship with any of these rating agencies.

ABOUT LIGHTHOUSE BANK:
Lighthouse Bank is a locally owned and operated full-service 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. The Bank is dedicated to providing exceptional personalized service and access to decision makers who are always close at hand. The Bank offers a unique worldwide ATM fee rebate program and complimentary business courier service which expands the geographical reach of its banking office location throughout Santa Cruz County. Lighthouse Bank is committed to operating an open, ethical and financially successful company without engaging in the corporate excesses that have come to characterize the financial services industry. All decisions are intended to contribute to the long-term success of its clients, employees, owners and the community it serves. The Bank received no TARP funds and has neither accepted nor requested government assistance of any kind. Lighthouse Bank has never been subject to either formal or informal regulatory action.

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. More Information on the Bank may be obtained through its website www.lighthousebank.net or by calling 831-600-4000.

	Selected Financial Data (unaudited)
	Quarter-Ended			Quarter-Ended		Year-to-Date Ended
	6/30/2013	3/31/2013	%	6/30/2012	%	6/30/2013	6/30/2012*	%

Balance Sheet

Total assets	$ 160,088,961	$ 163,196,415	-2%	$ 161,110,854	-1%
Gross loans	101,845,479	103,364,129	-1%	91,527,404	11%
Allowance for loan losses	2,874,031	2,872,319	0%	2,671,314	8%
Non interest-bearing deposits	32,208,453	32,016,105	1%	33,082,812	-3%
Total deposits	137,893,677	141,139,791	-2%	140,827,597	-2%
Shareholders' equity	21,588,909	21,137,438	2%	19,680,615	10%

Income Statement

Interest income	1,865,314	1,799,268	4%	1,770,664	5%	$ 3,664,582	$ 3,492,383	5%
Interest expense	108,506	113,611	-4%	148,640	-27%	222,117	297,816	-25%
Net interest income	1,756,808	1,685,657	4%	1,622,024	8%	3,442,465	3,194,567	8%

Provision for loan losses	-	-	0%	88,000	-100%	-	108,000	-100%
Non-interest income	79,924	82,750	-3%	86,870	-8%	162,674	180,996	-10%
Non-interest expense	947,600	949,771	0%	930,515	2%	1,897,371	1,871,182	1%
Net income before taxes	889,132	818,636	9%	690,379	29%	1,707,768	1,396,381	22%
Income tax expense (benefit)	328,958	297,995	10%	244,117	35%	626,953	513,895	22%

Net income	$ 560,174	$ 520,641	8%	$ 446,262	26%	$ 1,080,815	$ 882,486	22%

Earnings per share (basic) *	$ 0.26	$ 0.24	8%	$ 0.21	24%	$ 0.51	$ 0.41	24%
Book value per share *	$ 10.09	$ 9.88	2%	$ 9.20	10%	$ 10.09	$ 9.20	10%

Ratios
Net interest margin	4.64%	4.43%		4.42%
Equity capital-to-total assets	13.5%	13.0%		12.2%
Return on Average Assets	1.42%	1.40%		1.10%
Return on Average Equity	10.58%	10.00%		8.80%
Allowance for Loan Losses-to-Total Loans	2.82%	2.78%		2.92%
Non-Performing Assets-to-Total Assets	0.20%	0.23%		0.26%
Efficiency Ratio	51.1%	53.8%		51.1%

* - adjusted for 5% stock dividend of 3/8/13