Lighthouse Bank Reports Record Earnings in 3rd Quarter 2013

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Oct 18, 2013, 04:41 ET

SANTA CRUZ, Calif., Oct. 18, 2013 /PRNewswire/ -- Locally owned Lighthouse Bank (OTC Bulletin Board: LGHT) today released unaudited financial results for the 3rd quarter ended September 30, 2013. The Bank posted a $653 thousand profit for the period, representing the 17^th successive quarter of profitable operations and record quarterly earnings. Lighthouse Bank has posted consecutive record earnings for each of the past 15 quarters. For the period, earnings surpassed the record set for the quarter ended June 30, 2013, and represented a 29% increase in earnings compared to the same period ended September 30, 2012. Shareholders' equity increased by $681 thousand to $22.3 million during the 3^rd quarter of 2013. The Bank experienced solid growth in loans, up 7% from September 30, 2012. Deposits decreased 8% 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 2.87% of gross loans remained significantly above the industry average of 1.75% for banks under $1 billion in size. The Bank had no nonperforming loans and no past due loans in excess of 30 days at September 30, 2013 and has experienced no loan losses year-to-date. Since opening in 2007, Lighthouse Bank's cumulative net loan losses have totaled only $184 thousand.

During the quarter, return on average equity increased to a record 11.76%. In spite of this extremely strong performance Lighthouse Bank stock (LGHT) continues to trade at under book value.

Lighthouse Bank will mark its 6^th anniversary on October 29, 2013. Since opening, the Bank's consistently strong financial results continue 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		Change	Quarter-Ended	Change	Year-to-Date Ended		Change
	9/30/2013	6/30/2013	%	9/30/2012*	%	9/30/2013	9/30/2012*	%

Balance Sheet

Total assets	$ 160,699,244	$ 160,088,961	0%	$ 171,533,262	-6%
Gross loans	100,119,098	101,845,479	-2%	93,756,667	7%
Allowance for loan losses	2,874,031	2,874,031	0%	2,807,916	2%
Non interest-bearing deposits	33,021,385	32,208,453	3%	38,921,706	-15%
Total deposits	137,647,912	137,893,677	0%	150,387,191	-8%
Shareholders' equity	22,270,053	21,588,909	3%	20,421,740	9%

Income Statement

Interest income	2,036,849	1,865,314	9%	1,768,810	15%	$ 5,701,431	$ 5,261,193	8%
Interest expense	106,932	108,506	-1%	148,291	-28%	329,049	446,107	-26%
Net interest income	1,929,917	1,756,808	10%	1,620,519	19%	5,372,382	4,815,086	12%

Provision for loan losses	-	-	0%	90,000	-100%	-	198,000	-100%
Non-interest income	105,810	79,924	32%	88,596	19%	268,484	269,592	0%
Non-interest expense	978,861	947,600	3%	895,887	9%	2,876,232	2,767,069	4%
Net income before taxes	1,056,866	889,132	19%	723,228	46%	2,764,634	2,119,609	30%
Income tax expense (benefit)	403,749	328,958	23%	266,171	52%	1,030,702	780,066	32%

Net income	$ 653,117	$ 560,174	17%	$ 457,057	43%	$ 1,733,932	$ 1,339,543	29%

Earnings per share (basic) *	$ 0.31	$ 0.26	19%	$ 0.21	48%	$ 0.81	$ 0.63	29%
Book value per share *	$ 10.41	$ 10.09	3%	$ 9.54	9%	$ 10.41	$ 9.54	9%

Ratios
Net interest margin	4.91%	4.57%		4.07%
Equity capital-to-total assets	13.9%	13.5%		11.9%
Return on Average Assets	1.59%	1.41%		1.09%
Return on Average Equity	11.76%	10.46%		9.03%
Allowance for Loan Losses-to-Total Loans	2.87%	2.82%		2.99%
Non-Performing Assets-to-Total Assets	0.20%	0.20%		0.52%
Efficiency Ratio	48.1%	51.6%		52.4%

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