Lighthouse Bank Reports Strong Third-Quarter Earnings, Net Income Up 88 Percent Year-Over-Year

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Oct 20, 2017, 19:27 ET

SANTA CRUZ, Calif., Oct. 20, 2017 /PRNewswire/ -- Locally owned Lighthouse Bank (OTC-QB: LGHT) today released unaudited financial results for the quarter-ended September 30, 2017. Net income was $978 thousand, an 88% increase over the same quarter in 2016. Total assets grew to a record $257 million, an increase of $47 million, or 23%, from the quarter-ended September 30, 2016.

These results represent the Bank's 33^rd successive quarter of profitable operations. Highlights for the third quarter results include: Loans increased by $26 million, or 16% year over year; and deposits increased $42.6 million, or 24%, compared to the quarter-ended September 30, 2016. In addition to increased loan yields, year-over-year profitability has benefitted by a short-term reduction in the Bank's effective tax rate.

For the quarter-ended September 30, 2017, total shareholders' equity increased by $1.4 million to $34 million. Year-over-year, shareholders' equity increased $4.5 million, or 15%.

In August, 2017 the Bank paid a $0.09 per share quarterly cash dividend to shareholders, which followed four previous consecutive quarterly cash dividends of $0.08 per share. Since January 2015, the Bank has paid $2,560,314 in cash dividends to shareholders.

During the quarter the Bank continued with its expansion plans in Silicon Valley, celebrating the October 2^nd opening of its new full-service banking office located at 19240 Stevens Creek Boulevard in Cupertino.

Lane Lawson, Chief Executive Officer of Lighthouse Bank confirms, "We experienced significant traction since launching our Loan Production Office earlier this year. We felt it was time to demonstrate our commitment to the local business community by expanding the Bank's footprint to include a full-service office, staffed by experienced relationship bankers who truly understand the unique needs of Silicon Valley businesses."

Lighthouse Bank celebrates its 10^th Anniversary on October 29, 2017. Since opening, the Bank has established itself as a consistent elite performer, earning 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:

2016 & 2017 consecutive-year ranking as "Nation's 5^th Healthiest Bank" of 6,000 total banks.
SNL Financial ranking as "Nation's 29^th Highest Performing Bank" in 2016 of 5,100 banks of asset size under $1 billion.
Financial Management Consulting's "12^th Highest Performing Bank" out of 171 California banks, based on overall performance.
21-consecutive quarters possessing "Five-Star Superior" the top rating by Bauer Financial.
6 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 Santa Clara Counties. The Bank's headquarters are 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 and complimentary business courier service expand the Bank's geographical reach throughout Santa Cruz County and the Silicon Valley. Lighthouse Bank is committed to operating an open, ethical and financially successful company without engaging in the corporate excesses that have characterized the financial services industry. All decisions are intended to contribute to the long-term success of its clients, employees, owners and the communities it serves. Lighthouse Bank has never been subject to either formal or informal regulatory action.

Lighthouse Bank's stock (LGHT) is actively traded via the Bank's market makers and online and full-service brokerage providers. More information on the Bank and historical financial performance may be obtained through the Bank's website at www.lighthousebank.net 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			Year-to-Date Ended			Change
	9/30/2017		6/30/2017			$	%	9/30/2016			$	%	9/30/2017		9/30/2016			$		%

Balance Sheet

Total assets	$	256,508,791	$	243,782,964	$	12,725,827	5%	$	209,145,253	$	47,363,538	23%
Gross loans		193,370,670		185,442,862		7,927,808	4%		167,337,677		26,032,993	16%
Allowance for loan losses		4,360,530		4,080,530		280,000	7%		3,982,751		377,779	9%
Non interest-bearing deposits		60,030,905		56,938,106		3,092,799	5%		41,241,780		18,789,125	46%
Total deposits		221,640,019		210,462,931		11,177,088	5%		179,062,469		42,577,550	24%
Shareholders' equity		34,017,779		32,615,093		1,402,686	4%		29,555,301		4,462,478	15%

Income Statement

Interest income		3,155,220		2,899,943		255,277	9%		2,531,219		624,001	25%	$	8,774,257	$	6,984,751		$	1,789,506	26%
Interest expense		146,257		139,515		6,742	5%		120,029		26,228	22%		417,480		315,983			101,497	32%
Net interest income		3,008,963		2,760,428		248,535	9%		2,411,190		597,773	25%		8,356,777		6,668,768			1,688,009	25%

Non-interest income		311,795		73,901		237,894	322%		78,478		233,317	297%		450,949		207,707			243,242	117%
Non-interest expense		1,650,584		1,521,141		129,443	9%		1,288,794		361,790	28%		4,643,978		3,641,891			1,002,087	28%
Income tax expense		412,196		470,839		(58,643)	-12%		340,273		71,923	21%		1,354,296		1,010,328			343,968	34%
Net income before loan loss provisions		1,257,978		842,349		415,629	49%		859,874		398,104	46%		2,809,452		2,224,256			585,196	26%
Provision for loan losses		280,000		56,000		224,000	400%		341,000		(61,000)	-18%		336,000		682,500			(346,500)	-51%
Net income	$	977,978	$	786,349	$	191,629	24%	$	519,601	$	458,377	88%	$	2,473,452	$	1,541,756		$	931,696	60%

Earnings per share (basic)	$	0.39	$	0.32	$	0.07	22%	$	0.22	$	0.17	77%	$	1.00	$	0.66		$	0.34	52%
Book value per share	$	13.32	$	13.16	$	0.16	1%	$	12.57	$	0.75	6%	$	13.32	$	12.57		$	0.75	6%

Ratios
Net interest margin *		4.99%		4.94%					4.84%					4.96%		4.86%
Equity capital-to-total assets		13.3%		13.4%					14.1%					13.3%		14.1%
Return on Average Assets *		1.54%		1.33%					0.98%					1.38%		1.06%
Return on Average Equity *		11.54%		9.76%					7.00%					10.16%		7.12%
Allowance for Loan Losses-to-Total Loans		2.26%		2.20%					2.38%					2.26%		2.38%
Non-Performing Assets-to-Total Assets		0.00%		0.00%					0.03%					0.00%		0.03%
Efficiency Ratio *		49.7%		53.7%					51.8%					53.0%		53.1%
* Average for period