Santa Cruz County Bank Reports Record High of Over $400 Million in Assets, Earnings for the Third Quarter Ended September 30, 2013

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Oct 21, 2013, 06:00 ET

SANTA CRUZ, Calif., Oct. 21, 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 third quarter ended September 30, 2013.

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THIRD QUARTER: SEPTEMBER 30, 2013 COMPARED TO JUNE 30, 2013
Net income increased $5.2 thousand, 1%, to $830.3 thousand
Total deposits increased $21.2 million, 6%, to $366.1 million
Gross loans increased $2.1 million, 1%, to $240.0 million
Total assets increased $22.0 million, 6%, to $403.1 million

NINE-MONTHS ENDED: SEPTEMBER 30, 2013 COMPARED TO SEPTEMBER 30, 2012
Net income increased $463.1 thousand, 23%, to $2.5 million
Total deposits increased $46.7 million, 15%, to $366.1 million
Gross loans increased $33.3 million, 16%, to $240.0 million
Total assets increased $51.1 million, 15%, to $403.1 million

David V. Heald commented, "This quarter we achieved a milestone of over $400 million in total assets. This accomplishment demonstrates our commitment to deliver products and services that meet the needs of our community. The community's loyalty and support of Santa Cruz County Bank resulted in double-digit percentage increases over the prior year in net income, deposits, loans and assets for each quarter this year."

Non-interest bearing deposits continue to increase and represent 48% of total deposits as of September 30, 2013 compared to 44% as of September 30, 2012.

THIRD QUARTER HIGHLIGHTS:
The Bank declared a $0.05 cash dividend to shareholders of record as of September 27, 2013 and payable October 10, 2013.

The Bank received a 4-Star "Excellent" rating by Bauer Financial, Inc. for its first quarter 2013 performance.

As of June 30, 2013 FDIC data, the Bank ranked fifth in overall deposit market share in its primary marketplace, Santa Cruz County.

The Bank hired Jon Sisk as Senior Vice President and Director of Real Estate and Construction Lending.

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.

RATINGS & AWARDS:
The Findley Reports, Inc.
2012 – One of eleven "Exceptional Banks" in California
2012, 2011 – "Super Premier Performing Bank"

Bauer Financial Reports, Inc.
Santa Cruz County Bank has received the distinction of 4-Star "Excellent" and 5-Star "Superior" by Bauer Financial Reports, Inc., for its financial performance every quarter since 2007.

American Banker Magazine
May 2013 - Santa Cruz County Bank ranked 103^rd out of 851 institutions in American Banker Magazine's "Top Performing 200 Community Banks and Thrifts in the United States" based upon 3-year average return on equity.

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.

	Selected Financial Data (unaudited)
	September 30, 2013


			Change				Change
	Quarter ended 9/30/13	Quarter ended 9/30/12	$	%	Quarter ended 9/30/13	Quarter ended 6/30/13	$	%
BALANCE SHEET

Total assets	$ 403,100,870	$ 352,000,974	$ 51,099,896	15%	$ 403,100,870	$ 381,152,211	$ 21,948,659	6%
Gross loans	239,981,790	206,707,859	33,273,931	16%	239,981,790	237,841,603	2,140,187	1%
Allowance for loan losses	5,484,181	4,846,966	637,215	13%	5,484,181	5,430,183	53,998	1%
Non interest-bearing deposits	174,943,138	141,955,724	32,987,414	23%	174,943,138	153,643,037	21,300,101	14%
Total deposits	366,084,545	319,347,043	46,737,502	15%	366,084,545	344,930,572	21,153,973	6%
Shareholders' equity	31,597,089	29,119,860	2,477,229	9%	31,597,089	30,724,547	872,542	3%

BOOK VALUE PER SHARE	$ 15.94	$ 14.81			$ 15.94	$ 15.61

INCOME STATEMENT							Change
					Nine-months ended 9/30/13	Nine-months ended 9/30/12	$	%
Interest income	3,823,746	3,448,191	375,555	11%	11,131,180	10,225,170	$ 906,010	9%
Interest expense	101,119	110,482	(9,363)	-8%	315,152	351,681	(36,529)	-10%
Net interest income	3,722,627	3,337,709	384,918	12%	10,816,028	9,873,489	942,539	10%

Provision for loan losses	62,500	194,000	(131,500)	-68%	362,500	794,000	(431,500)	-54%
Non-interest income	742,264	784,767	(42,503)	-5%	2,386,192	1,884,290	501,902	27%
Non-interest expense	3,068,670	2,720,724	347,946	13%	8,895,220	7,848,575	1,046,645	13%
Net income before taxes	1,333,721	1,207,752	125,969	10%	3,944,500	3,115,204	829,296	27%
Income tax expense	503,434	423,093	80,341	19%	1,490,093	1,123,858	366,235	33%
Net income after taxes	$ 830,287	$ 784,659	45,628	6%	$ 2,454,407	$ 1,991,346	463,061	23%

BASIC EARNINGS PER SHARE	$ 0.42	$ 0.40			$ 1.25	$ 1.04

RATIOS
Net interest margin	3.94%	4.11%
Tier 1 leverage ratio	8.15%	8.34%