SANTA CRUZ, Calif., April 17, 2015 /PRNewswire/ -- Locally owned Lighthouse Bank (OTC-QB: LGHT) today released unaudited financial results for the quarter-ended March 31, 2015. The Bank posted a $494 thousand profit for the period, as compared to $596 thousand during Q1 2014, the variance being attributed primarily to a large one-time fee collected during Q1 2014. This represented the 23rd successive quarter of profitable operations for the seven-year-old Bank. For the period, total shareholders' equity grew to $25.7 million. Year-over-year, shareholders' equity increased by 9%. The Bank experienced strong growth in deposits up 6% since December 31, 2014 and 10% year-over-year, to $151 million. Loans decreased modestly during Q1 ending at $121 million due to several large construction loan payoffs, but were up 9% year-over-year. Overall positive performance continued to be driven by the Bank's control of overhead expenses.
The Bank's loan loss reserve of 2.61% of gross loans remained approximately 50% above the industry average for banks of all sizes. While the Bank has elected to maintain an extremely conservative reserve, it nonetheless had no nonperforming loans, no past due loans in excess of 30 days and no nonperforming assets at period end. Lighthouse Bank has not taken a loan loss in over three years and has experienced only a single loan loss since opening in 2007.
During the past year, the Bank moved forward with development of its future headquarters site at 2020 N. Pacific Avenue, Santa Cruz. The property is located in the heart of downtown Santa Cruz and was purchased by the Bank in January 2014. Interior demolition at the site has now commenced with full renovation and expansion of that facility expected to begin within the next 45 days. Project completion is expected by December 31, 2015, with occupancy anticipated in early 2016.
Lighthouse Bank President and CEO, Richard Hofstetter, has announced that he will be retiring in early 2016. The Bank is pleased to report that he will be succeeded by Lane Lawson, who has served as the Bank's Executive Vice President and Chief Credit Officer since 2007. Mr. Lawson has over 40 years of banking experience, including having previously held the position of President and CEO of a Community Bank. As one of Lighthouse Bank's founding members, Mr. Lawson provides vast knowledge regarding the Bank, its clients and its markets.
In January 2015, the Bank paid a $.40/ share cash dividend to shareholders, declared in December 2014. This represented the first cash dividend paid by the Bank since emerging from its 7 year DeNovo term late last year. This followed two prior stock dividends granted in 2011 and 2013. Since opening, Lighthouse Bank's consistently strong financial results continue to place it at the top of the industry in a variety of categories including asset quality, capital adequacy, return on equity and operational efficiency. In March 2015, SNL Financial ranked Lighthouse Bank as the 8th highest performing community bank in the nation, of 4,316 banks with total assets under $500 million dollars, based on 2014 results. The price of the Bank's stock has increased during the past year as a result of this strong performance. The 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's stock and historical financial performance may be located on the Bank's website at http://lighthousebank.net/Company/StockInformation/tabid/2477/Default.aspx.
The Bank is rated by Bauer Financial as Five-Star "Superior" for strong financial performance, the top rating given by the independent bank rating firm. Lighthouse Bank is the only locally owned institution in Santa Cruz County with a Five-Star rating. The Findley Reports, a well-known banking publication named the 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, California. The Bank marked its 7th anniversary in October 2014. Lighthouse 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. A unique worldwide ATM fee rebate program, business courier service, and remote deposit capture technology allow the Bank to expand its 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 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. More Information on the Bank may be obtained through its website 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 |
Quarter-Ended |
|||||
| 3/31/2015 |
12/31/2014 |
% |
3/31/2014 |
% |
||
| Balance Sheet |
||||||
| Total assets |
$ 177,783,510 |
$ 168,334,053 |
6% |
$ 161,996,473 |
10% |
|
| Gross loans |
120,996,019 |
122,754,978 |
-1% |
110,833,596 |
9% |
|
| Allowance for loan losses |
3,164,031 |
3,164,031 |
0% |
2,882,031 |
10% |
|
| Non interest-bearing deposits |
40,732,214 |
35,877,916 |
14% |
31,914,932 |
28% |
|
| Total deposits |
151,404,547 |
142,758,593 |
6% |
137,514,513 |
10% |
|
| Shareholders' equity |
25,715,394 |
25,166,825 |
2% |
23,506,821 |
9% |
|
| Income Statement |
||||||
| Interest income |
1,907,456 |
2,006,952 |
-5% |
2,001,814 |
-5% |
|
| Interest expense |
90,543 |
92,376 |
-2% |
96,497 |
-6% |
|
| Net interest income |
1,816,913 |
1,914,576 |
-5% |
1,905,317 |
-5% |
|
| Provision for loan losses |
- |
- |
0% |
8,000 |
-100% |
|
| Non-interest income |
87,287 |
89,466 |
-2% |
100,920 |
-14% |
|
| Non-interest expense |
1,101,393 |
957,934 |
15% |
1,031,316 |
7% |
|
| Net income before taxes |
802,807 |
1,046,108 |
-23% |
966,921 |
-17% |
|
| Income tax expense (benefit) |
309,182 |
379,316 |
-18% |
370,427 |
-17% |
|
| Net income |
$ 493,625 |
$ 666,792 |
-26% |
$ 596,494 |
-17% |
|
| Earnings per share (basic) |
$ 0.22 |
$ 0.30 |
-27% |
$ 0.28 |
-21% |
|
| Book value per share |
$ 11.58 |
$ 11.41 |
2% |
$ 10.98 |
5% |
|
| Ratios |
||||||
| Net interest margin |
4.55% |
4.78% |
5.02% |
|||
| Equity capital-to-total assets |
14.5% |
15.0% |
14.5% |
|||
| Return on Average Assets |
1.17% |
1.58% |
1.48% |
|||
| Return on Average Equity |
7.84% |
10.41% |
10.39% |
|||
| Allowance for Loan Losses-to-Total Loans |
2.61% |
2.58% |
2.60% |
|||
| Non-Performing Assets-to-Total Assets |
0.00% |
0.00% |
0.22% |
|||
| Efficiency Ratio |
57.8% |
47.8% |
51.4% |
|||
SOURCE Lighthouse Bank
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