Lighthouse Bank Posts Third Successive Quarter of Record Earnings

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Jul 15, 2011, 04:23 ET

SANTA CRUZ, Calif., July 15, 2011 /PRNewswire/ -- Locally owned Lighthouse Bank (OTC Bulletin Board: LGHT) posted a $340 thousand profit for the 2nd quarter ended June 30, 2011, representing the Bank's 8th consecutive quarter of profitable operations and record quarterly earnings for the three year old Bank. For the period, earnings surpassed the $324 thousand record set at the quarter ended March 31, 2011, and represented a 155% increase compared to the same period ended June 30, 2010. Year-to-date earnings for the first six months of 2011 were $664 thousand. Shareholders' equity increased by $361 thousand to over $17.9 million during the 2nd quarter of 2011. The Bank experienced modest growth in both loans and deposits during the period.

Lighthouse Bank continues to maintain capital that is substantially in excess of the "well capitalized" designation established by financial regulators. The Bank's loan loss reserve is conservatively maintained, which at 3.30% of gross loans is well above industry averages. The loan loss reserve was increased by $209 thousand during the quarter in anticipation of future loan growth and as added protection against unanticipated credit losses. Since opening in October 2007, Lighthouse Bank has not experienced a loan loss. There were no past due loans in excess of 30 days at June 30, 2011. Total nonperforming assets of $2.5 million consisted of three pieces of residential real estate owned by the Bank. The largest of these properties, at $1.3 million, has sold and escrow closed on July 6, 2011. The Bank experienced no loss as a result of the sale of that real estate asset.

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. 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 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.


	Selected Financial Data (unaudited)
	Quarter-Ended		Change		Quarter-ended	Change		Year-to-Date Ended		Change
	6/30/2011	3/31/2011	$	%	6/30/2010	$	%	6/30/11	6/30/10	$	%

Balance Sheet

Total assets	$ 117,068,771	$ 115,072,209	$ 1,996,562	2%	$ 100,236,780	$ 14,835,429	15%
Gross loans	70,663,950	69,391,786	1,272,164	2%	61,737,266	7,654,520	12%
Allowance for loan losses	2,329,000	2,120,000	209,000	10%	1,659,000	461,000	28%
Non interest-bearing deposits	17,320,567	17,572,660	(252,093)	-1%	14,228,835	3,343,825	24%
Total deposits	98,970,468	97,056,654	1,913,814	2%	80,140,704	16,915,950	21%
Shareholders' equity	17,963,617	17,602,418	361,199	2%	16,751,572	850,846	5%

Income Statement

Interest income	1,497,313	1,548,674	(51,361)	-3%	1,289,169	259,505	20%	$ 3,045,987	$ 2,470,013	$ 575,974	23%
Interest expense	163,775	167,580	(3,805)	-2%	172,316	(4,736)	-3%	331,355	356,182	(24,827)	-7%
Net interest income	1,333,538	1,381,094	(47,556)	-3%	1,116,853	264,241	24%	2,714,632	2,113,831	600,801	28%

Provision for loan losses	209,000	195,000	14,000	7%	195,000	-	0%	404,000	275,000	129,000	47%
Non-interest income	33,472	53,369	(19,897)	-37%	122,413	(69,044)	-56%	86,841	163,460	(76,619)	-47%
Non-interest expense	817,843	915,551	(97,708)	-11%	917,030	(1,479)	0%	1,733,394	1,800,296	(66,902)	-4%

Net income	$ 340,167	$ 323,912	$ 16,255	5%	$ 127,236	$ 196,676	155%	$ 664,079	$ 201,995	$ 462,084	229%

Net income excluding loan loss provisions	$ 549,167	$ 518,912	$ 30,255	6%	$ 322,236	$ 196,676	61%	$ 1,068,079	$ 476,995	$ 591,084	124%

Earnings per share (basic)	$ 0.18	$ 0.17	$ 0.01	5%	$ 0.07	0.11	155%
Book value per share	$ 9.69	$ 9.50	$ 0.19	2%	$ 9.04	$ 0.46	5%

Ratios
Net interest margin	4.66%	4.97%			4.65%
Equity capital-to-total assets	15.3%	15.3%			16.7%