Lighthouse Bank Reports Record Earnings for 2018

Total Assets top $303 Million

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Jan 18, 2019, 17:42 ET

SANTA CRUZ, Calif., Jan. 18, 2019 /PRNewswire/ -- Locally owned Lighthouse Bank (OTC-QB: LGHT) today released unaudited financial results for the quarter-ended December 31, 2018 and year-ended December 31, 2018.

Net income for 2018 was $4.9 million, a $1.9 Million, or 64%, increase over 2017. Total assets grew to a record $303.9 million, an increase of $42.9 million, or 16%, from the previous year-ended December 31, 2017.

The Bank experienced solid loan and deposit growth during the year. Gross loans increased $31.3 million, or 15%, year-over-year, to $244 million. Total deposits increased $34.7 million, or 15%, to $260.8 million.

The Bank continues to maintain exceptional credit quality with no past-due loans and no non-performing loans at year-end 2018.

Lane Lawson, Chief Executive Officer of Lighthouse Bank commented "We are extremely pleased with the Bank's performance in 2018. Our exceptional financial results continue to be driven by the efforts of our entire team of dedicated banking professionals, our management group and our board of directors."

Financial Highlights presented below:

	Year Ended December 31,
	2018	2017	Change

BALANCE SHEET

Total assets	$ 303,939,403	$ 261,063,542	16%
Gross loans	244,428,892	213,117,336	15%
Allowance for loan losses	5,401,290	4,688,529	15%
Non-interest-bearing deposits	74,127,974	60,840,430	22%
Total deposits	260,751,705	226,090,556	15%
Shareholders' equity	39,076,764	34,378,372	14%

NET INCOME	$ 4,936,930	$ 3,006,685	64%

RATIOS	2018	2017
Net interest margin*	5.40%	4.98%
Equity capital-to-total assets	12.9%	13.2%
Return on Average Assets*	1.74%	1.24%
Return on Average Equity*	13.35%	9.16%

Allowance for Loan Losses-to-Total Loans	2.21%	2.20%


Non-Performing Assets-to-Total Assets	0.00%	0.00%
Efficiency Ratio*	49.1%	53.4%
*Average for annual period

SHARE INFORMATION
Earnings per share (basic)	$ 1.91	$ 1.20
Book value per share	$ 15.02	$ 13.45

Total common shares outstanding	2,602,222	2,555,080

Fourth Quarter Earnings
Net Income of $1.6 Million for the quarter-ended December 31, 2018 was up $541 thousand from the prior quarter.

FINANCIAL HIGHLIGHTS:

Fourth Quarter earnings of $1,598,822 or $0.61 per share.
Book value per share increased by $0.53 to $15.02 at December 31, 2018.
Fourth Quarter 2018 Return on Average Assets and Equity of 2.10% and 16.48%, respectively.
Quarter-ended December 31, 2018 Net Interest Margin was 5.26%

Lighthouse Bank marked its 11^th Anniversary on October 29, 2018. Since opening, the Bank has earned consecutive top rankings based on a variety of categories including asset quality, capital adequacy, return on average assets, return on average equity and operational efficiency.

Recognition and Awards Received:

Three consecutive-years ranking in "Nation's Top Ten Healthiest Banks", by depositaccounts.com.
S&P Global Market Intelligence ranking as "Nation's 11th Best-Performing Community Bank" for 2017, of 4,383 banks of asset size under $1 billion.
Financial Management Consulting's "Sixth Highest Performing Bank" out of 159 California banks, based on overall performance.
25-consecutive quarters possessing "Five-Star Superior," the top rating by Bauer Financial.
Seven consecutive-year achievement of "Super Premier Performing Bank," the highest designation given by Findley Reports, Inc.

ABOUT LIGHTHOUSE BANK:
Lighthouse Bank is a highly rated locally owned and operated full-service commercial bank with offices in Santa Cruz and Silicon Valley. The Bank's Santa Cruz office is located at 2020 North Pacific Avenue in Santa Cruz, CA. The Bank's Silicon Valley office is located at 19240 Stevens Creek Blvd, Cupertino, 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 close at hand. Lighthouse Bank's unique worldwide ATM fee waiver program, complimentary business courier service, and remote deposit technology expand the Bank's geographical reach throughout Santa Cruz County and Silicon Valley.

Lighthouse Bank's stock is listed and publicly traded under the ticker symbol LGHT. More information on the Bank and historical financial performance may be obtained through the Bank's website at www.lighthousebank.com or by calling 831-600-4000.

Member FDIC / Equal Housing Lender / SBA Preferred Lender

The attached 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 fluctuation 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)
	Quarter-Ended		Change	Quarter-Ended		Year-to-Date Ended		Change
	12/31/2018	9/30/2018	%	12/31/2017	%	12/31/2018	12/31/2017	%

Balance Sheet

Total assets	$ 303,939,403	$ 298,033,881	2%	$ 261,063,542	16%
Gross loans	244,428,892	236,143,033	4%	213,117,336	15%
Allowance for loan losses	5,401,290	5,401,290	0%	4,688,529	15%
Non interest-bearing deposits	74,127,974	80,038,580	-7%	60,840,430	22%
Total deposits	260,751,705	259,432,322	1%	226,090,556	15%
Shareholders' equity	39,076,764	37,622,590	4%	34,378,372	14%

Income Statement

Interest income	4,226,754	4,100,032	3%	3,269,765	29%	$ 15,642,356	$ 12,044,022	30%
Interest expense	377,366	314,686	20%	150,016	152%	1,037,333	567,496	83%
Net interest income	3,849,388	3,785,346	2%	3,119,749	23%	14,605,023	11,476,526	27%
Provision for loan losses	-	447,500	-100%	328,000	-100%	712,760	664,000	7%
Net interest income after provision for loan losses	3,849,388	3,337,846	15%	2,791,749	38%	13,892,263	10,812,526	28%

Non-interest income	79,369	83,484	-5%	79,466	0%	309,896	530,415	-42%
Non-interest expense	1,837,448	1,893,457	-3%	1,752,796	5%	7,308,750	6,396,774	14%
Net income before taxes	2,091,309	1,527,873	37%	1,118,419	87%	6,893,409	4,946,167	39%
Income tax expense	492,487	469,562	5%	585,186	-16%	1,956,479	1,939,482	1%
Net income	$ 1,598,822	$ 1,058,311	51%	$ 533,233	200%	$ 4,936,930	$ 3,006,685	64%

Earnings per share (basic)	$ 0.61	$ 0.41	49%	$ 0.21	190%	$ 1.91	$ 1.20	59%
Book value per share	$ 15.02	$ 14.49	4%	$ 13.45	12%	$ 15.02	$ 13.45	12%

Ratios
Net interest margin *	5.26%	5.38%		5.01%		5.40%	4.98%
Equity capital-to-total assets	12.9%	12.6%		13.2%		12.9%	13.2%
Return on Average Assets *	2.10%	1.43%		0.82%		1.74%	1.24%
Return on Average Equity *	16.48%	11.21%		6.16%		13.35%	9.16%
Allowance for Loan Losses-to-Total Loans	2.21%	2.29%		2.20%		2.21%	2.20%
Non-Performing Assets-to-Total Assets	0.00%	0.0%		0.00%		0.00%	0.00%
Efficiency Ratio *	46.8%	48.9%		54.8%		49.1%	53.4%
* Average for period