Lighthouse Bank Continues to Out-Perform Peers

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Oct 19, 2012, 02:17 ET

SANTA CRUZ, Calif., Oct. 19, 2012 /PRNewswire/ -- Locally owned Lighthouse Bank (OTC Bulletin Board: LGHT) today released unaudited financial results for the 3^rd quarter-ended September 30, 2012. The Bank posted a $457 thousand profit for the period, representing the 13th successive quarter of profitable operations and record quarterly earnings for the five-year-old Bank. Year-to-date earnings for the first nine months of 2012 were $1.34 million and represented a 30% increase in earnings compared to the same period-ended September 30, 2011. Shareholders' equity increased by $741 thousand to $20.4 million during the 3^rd quarter of 2012. The Bank experienced significant growth in deposits and solid growth in loans during the quarter. Compared to the same period ended September 30, 2011, deposits increased by 27% and loans increased by 21%. Continued growth in deposits enabled Lighthouse Bank to commit additional resources to local lending. Lighthouse Bank's lending efforts continue to focus on its core market of Santa Cruz County.

The Bank's loan loss reserve of 2.99% of gross loans remained significantly above industry averages. The Bank had no past due loans in excess of 30 days at September 30, 2012. Total nonperforming assets of $870 thousand represented only 0.5% of total assets. Lighthouse Bank's stellar financial performance continues to garner industry accolades. The Bank is rated by Bauer Financial as 5-Star "Superior", the top ranking given by the independent bank rating firm. FMC Consulting Group named the Bank as among the top 15 (of 230) state chartered Banks in California. The Findley Reports named Lighthouse Bank a "Super Premier" performing bank, the highest ranking given by the well-known banking publication. The 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. Lighthouse 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		Change	Year-to-Date Ended		Change
	9/30/2012	6/30/2012	%	9/30/2012	9/30/2011*	%

Balance Sheet

Total assets	$ 171,533,262	$ 161,110,854	6%	$ 171,533,262	$ 136,576,720	26%
Gross loans	93,756,667	91,527,404	2%	93,756,667	77,639,125	21%
Allowance for loan losses	2,807,916	2,671,314	5%	2,807,916	2,619,000	7%
Non interest-bearing deposits	38,921,706	33,082,812	18%	38,921,706	30,498,263	28%
Total deposits	150,387,191	140,827,597	7%	150,387,191	118,087,432	27%
Shareholders' equity	20,421,740	19,680,615	4%	20,421,740	18,336,624	11%

Income Statement

Interest income	1,768,810	1,770,664	0%	$ 5,261,193	$ 4,596,539	14%
Interest expense	148,291	148,640	0%	446,107	487,382	-8%
Net interest income	1,620,519	1,622,024	0%	4,815,086	4,109,157	17%

Provision for loan losses	90,000	88,000	2%	198,000	694,000	-71%
Non-interest income	88,596	86,870	2%	269,592	216,498	25%
Non-interest expense	895,887	930,515	-4%	2,767,069	2,748,692	1%
Net income before taxes	723,228	690,379	5%	2,119,609	882,963	140%
Income tax expense (benefit)	266,171	244,117	9%	780,066	(147,070)	-630%

Net income	$ 457,057	$ 446,262	2%	$ 1,339,543	$ 1,030,033	30%

Earnings per share (basic) *	$ 0.22	$ 0.22	0%	$ 0.66	$ 0.51	29%
Book value per share *	$ 10.02	$ 9.66	4%	$ 10.02	$ 9.00	11%

Ratios
Net interest margin	4.07%	4.51%
Equity capital-to-total assets	11.9%	12.2%

* adjusted for 10% stock dividend of December 5, 2011

# Shares Outstanding	2,038,324	2,038,324		2,038,324	2,038,324