Lighthouse Bank Reports Record Total Assets of $314 Million, Total Deposits Reach Record of $272 Million

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Apr 22, 2019, 15:54 ET

SANTA CRUZ, Calif., April 22, 2019 /PRNewswire/ -- Lighthouse Bank (OTC-QB: LGHT), a top-rated locally owned and operated community bank, today released unaudited financial results for the quarter-ended March 31, 2019. Total assets grew to a record $314.4 million, an increase of $45 million, or 17%, from the quarter-ended March 31, 2018. Net income was $1.33 million, an increase of $295 thousand, or 28%, over the same quarter in 2018. Loans increased by $9 million, or 4%, and deposits increased $39.5 million, or 17%, year-over-year.

For the quarter-ended March 31, 2019, total shareholders' equity increased by $1.2 million to $40.3 million. Year-over-year, shareholders' equity increased $4.7 million, or 13%. In February, 2019 the Bank paid a $0.10 per share quarterly cash dividend to shareholders. Since January 2015, the Bank has paid $4,033,739 in cash dividends to shareholders.

Chief Executive Officer Lane Lawson commented, "We are very pleased to report record levels of assets and continued growth in deposits and loans. We believe our commitment to our community, to conservative management practices and to maintaining excellent asset quality continues to produce excellent results for the Bank." Lawson continued, "We are honored to have accumulated a long track record of top-rankings in our industry based on a variety of categories: asset quality, capital adequacy, return on average assets, return on average equity and operational results."

Among the Bank's notable rankings is placement among the "S&P Global Top 100 Best-Performing Community Banks" list. Lighthouse Bank ranked 19^th Best Performing of all U.S. banks of asset size under $3 billion in 2018. The Bank ranked 4^th out of the 13 California banks to make the top 100 list in 2018.

Commenting on the Bank's engagement in the community, Lawson stated, "I am proud of our entire team for their ongoing commitment to providing excellent client service and participation in the communities in which we serve. We were very excited to have been named the "Best Bank" by the readers of the Santa Cruz Sentinel; a notable recognition of the outstanding efforts of our entire team."

Recognition and Awards Received:

Voted "Best Bank" in the Santa Cruz Sentinel Readers Choice Awards.
Ranked in "Top Ten Healthiest Banks" for three consecutive-years, by depositaccounts.com
S&P Global Market Intelligence ranking as "Nation's 19^th Best-Performing Community Bank" for 2018, of all U.S. banks of asset size under $3 billion.
Financial Management Consulting's "Seventh Highest Performing Bank" out of 148 California banks, based on overall performance.
26-consecutive quarters possessing "Five-Star Superior," the top rating by Bauer Financial.
Eight consecutive-year achievement of "Super Premier Performing Bank," the highest designation given by Findley Reports, Inc.

Annual Meeting Notice:
Lighthouse Bank's Annual Meeting of Shareholders will be held on Thursday, May 16^th at 5:00 pm at the Bank's Santa Cruz Office at 2020 North Pacific Avenue, Santa Cruz, CA 95060.

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. Lighthouse Bank's "Modern Banking, Traditional Service" mantra extends into every aspect of their customer experience. The Bank's dedication to providing personalized relationship-based service and easy access to decision makers give its customers a refreshing alternative to "big banking". The Bank further supports this commitment by offering unique services such as worldwide surcharge free ATM/Debit Cards, remote deposit capture, and complimentary business courier service throughout Santa Cruz County.

Lighthouse is also focused on supporting the community and actively participates and donates to over 120 local non-profits, which includes matching employees' personal donation to non-profits of their choice. The focus on community and creating a customer experience that blends modern banking standards and traditional service has been the foundation of a number of local businesses choosing Lighthouse Bank.

Lighthouse offers a variety of competitive deposit and lending solutions for businesses and individuals; including loans, lines of credit, construction and commercial real estate financing, SBA government guaranteed loans, credit cards, merchant services, mobile banking, remote deposit capture, and online banking bill payment and cash management.

Lighthouse Bank stock is actively traded under the symbol LGHT. More information on the Bank's stock and historical financial performance may be located on the Bank's website 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	Change
	3/31/2019	12/31/2018	$	%	3/31/2018	$	%

Balance Sheet

Total assets	$ 314,400,116	$ 303,939,403	$ 10,460,713	3%	$ 268,978,242	$ 45,421,874	17%
Gross loans	236,203,413	244,428,892	(8,225,479)	-3%	227,215,328	8,988,085	4%
Allowance for loan losses	5,401,290	5,401,290	-	0%	4,907,530	493,760	10%
Non interest-bearing deposits	74,311,294	74,127,974	183,320	0%	66,529,651	7,781,643	12%
Total deposits	272,173,382	260,751,705	11,421,677	4%	232,707,740	39,465,642	17%
Shareholders' equity	40,286,234	39,076,764	1,209,470	3%	35,579,552	4,706,682	13%

Income Statement

Interest income	4,227,458	4,226,754	704	0%	3,576,233	651,225	18%
Interest expense	438,031	377,366	60,665	16%	150,487	287,544	191%
Net interest income	3,789,427	3,849,388	(59,961)	-2%	3,425,746	363,681	11%
Provision for loan losses	-	-	-	N/A	219,000	(219,000)	-100%
Net interest income after provision for loan losses	3,789,427	3,849,388	(59,961)	-2%	3,206,746	582,681	18%

Non-interest income	77,568	79,369	(1,801)	-2%	68,002	9,566	14%
Non-interest expense	1,989,375	1,837,448	151,927	8%	1,802,325	187,050	10%
Net income before taxes	1,877,620	2,091,309	(213,689)	-10%	1,472,423	405,197	28%
Income tax expense	544,554	492,487	52,067	11%	434,040	110,514	25%
Net income	$ 1,333,066	$ 1,598,822	(265,756)	-17%	$ 1,038,383	294,683	28%

Earnings per share (basic)	$ 0.51	$ 0.61	$ (0.10)	-16%	$ 0.40	$ 0.11	28%
Book value per share	$ 15.48	$ 15.02	$ 0.46	3%	$ 13.76	$ 1.72	12%

Ratios
Net interest margin *	5.17%	5.26%			5.49%
Equity capital-to-total assets	12.8%	12.9%			13.2%
Return on Average Assets *	1.74%	2.10%			1.59%
Return on Average Equity *	13.56%	16.48%			11.97%
Allowance for Loan Losses-to-Total Loans	2.29%	2.21%			2.16%
Non-Performing Assets-to-Total Assets	0.00%	0.0%			0.00%
Efficiency Ratio *	51.4%	46.8%			51.6%
* Average for period