Santa Cruz County Bank Reports 39% Increase over Prior Year Earnings for the First Quarter Ended March 31, 2013

SANTA CRUZ, Calif., April 17, 2013 /PRNewswire/ -- Santa Cruz County Bank (SCZC), a locally owned and operated full-service community bank headquartered in Santa Cruz County, today announced unaudited earnings for the first quarter ended March 31, 2013.

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FIRST QUARTER: MARCH 31, 2013 COMPARED TO DECEMBER 31, 2012
Total deposits increased $10.1 million or 3% to $331.7 million
Gross loans increased $4.8 million or 2% to $230.5 million 
Total assets increased $10.6 million or 3% to $366.9 million
Net income decreased $49.9 thousand or -6% to $799.1 thousand

YEAR TO YEAR: MARCH 31, 2013 COMPARED TO MARCH 31, 2012 
Total deposits increased $36.3 million or 12% to $331.7 million
Gross loans increased $30.7 million or 15% to $230.5 million
Total assets increased $41.2 million or 13% to $366.9 million 
Net income increased $225.6 thousand or 39% to $799.1 thousand

According to data released by the U.S. Small Business Administration (SBA) for the first six months of the SBA's 2013 fiscal year, Santa Cruz County Bank ranked as the 30^th largest provider of 7a and 504 SBA loans in California out of a total of 199 SBA lenders.

David V. Heald commented, "This quarter's strong performance attests to solid and stable core earnings and follows seven consecutive years of annual profits for Santa Cruz County Bank. One of the Bank's strategic initiatives is to stimulate our local economy through lending to small business owners. We have achieved growth in our loan portfolio, while most peer banks have had little or no loan growth. Our loan growth is a result of our continued commitment to our community, as well as our experienced and dedicated SBA and Commercial lending teams."

Non-interest bearing deposits continue to increase and represent 41% of total deposits as of March 31, 2013 compared to 37% as of March 31, 2012.

FIRST QUARTER HIGHLIGHTS:

The Bank was named one of eleven "Exceptional Banks" in California by The Findley Reports, Inc.

The Bank received a 4-Star "Excellent" rating by Bauer Financial, Inc. for its fourth quarter 2012 performance.

The Bank hired Geoffrey Loftus as Senior Vice President and Chief Credit Officer.

Out of 199 financial institutions in California, Santa Cruz County Bank ranked 30^th for total 7a and 504 SBA loans generated in the first six months of the SBA's 2013 fiscal year.

ABOUT SANTA CRUZ COUNTY BANK
Santa Cruz County Bank, founded in 2004, is a locally owned and operated community bank with offices located in Aptos, Capitola, Santa Cruz, Scotts Valley and Watsonville. The Bank offers a variety of competitive deposit and lending solutions for businesses and individuals; including business loans, lines of credit, commercial real estate financing, agricultural loans, SBA and USDA government guaranteed loans, credit cards, merchant services, remote deposit capture, and online banking bill payment and cash management. For the past seven years, the Bank's SBA Department has been recognized as a top SBA lender in Santa Cruz County for 7a and 504 loans.

In 2012, Santa Cruz County Bank received the distinction as one of eleven "Exceptional Banks" in California by The Findley Reports, Inc., an independent service which rates the annual financial performance of California banks. In 2011, the Bank received designation as a Super Premier Performing Bank by The Findley Reports, Inc. In addition, Santa Cruz County Bank has also received the distinction of 4-Star "Excellent" and a 5-Star "Superior" by Bauer Financial Reports, Inc., for its financial performance every quarter since 2007. For more information, visit www.sccountybank.com.

Santa Cruz County Bank's common stock is listed Over the Counter (OTCQB) under the stock symbol SCZC.

This 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 fluctuations 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.

SOURCE Santa Cruz County Bank