Santa Cruz County Bank Reports Unaudited Results for First Quarter 2011 Ended March 31, 2011

SANTA CRUZ, Calif., April 19, 2011 /PRNewswire/ -- Santa Cruz County Bank, (SCZC.OB), a locally owned and operated full-service community bank headquartered in Santa Cruz County, today announced earnings for the first quarter ending March 31, 2011. For the period the bank reported net income after tax of $453.5 thousand compared to $268.0 for the same period ended March 31, 2010, an improvement of 69%. Pretax income improved by $263.9 thousand to $727.3 thousand comparing March 31, 2011 to March 31, 2010. Net interest income for the three month period ended March 31, 2011 improved by $276.8 thousand over the same three month period of the prior year.

Basic earnings per share for the quarter ended March 31, 2011 were $0.24 compared to $0.16 for the first quarter of the prior year. Net interest margin for the first quarter ended March 31, 2011 was 4.65% as compared to 4.49% and 4.43% for the first and fourth quarter of 2010, respectively.

David Heald, President and CEO commented, "We are off to a good start toward achieving another record year for the bank, as evidenced by our earnings for the first quarter of this year compared to the first quarter of 2010. The bank compares well to California peer banks. Management and the Board of Directors continue to execute our strategic plan to ensure a solid franchise for our shareholders, customers and our community. Shareholder return continues to be our primary goal."

Shareholders' equity for the quarter ended March 31, 2011 increased by $606.4 thousand over the prior quarter ended December 31, 2010 and has increased by $4.2 million comparing March 31, 2011 to March 31, 2010.

QUARTER TO QUARTER: MARCH 31, 2011 COMPARED TO DECEMBER 31, 2010

Total deposits decreased $1.2  million, <1 % to $252.2 million

Gross loans decreased $14.4 million,  -8% to $167.0 million

Total assets decreased $4.8  million, -2%, to $280.1 million

Net income decreased $279.1 thousand, -38%, to $453.5 thousand

YEAR TO YEAR: MARCH 31, 2011 COMPARED TO MARCH 31, 2010

Total deposits increased $9.0 million, 4% to $252.2 million

Gross loans increased $12.1 million, 8% to $167.0 million

Total assets increased $13.4 million, 5%, to $280.1 million

Net income increased $185.6 thousand, 69%, to $453.5 thousand

The bank's non-interest income increased $406.5 thousand to $882.2 thousand as of March 31, 2011 compared to the first quarter of the prior year.

Non-interest bearing deposits represented 35% of total deposits as of March 31, 2011, one of the strongest ratios in the industry.

During the first quarter, Santa Cruz County Bank received two prominent ratings for its 2010 financial performance. Santa Cruz County Bank was designated as a Super Premier Performing Bank by the Findley Reports.  Super Premier Performing is the highest performance level given by Findley Reports. For the past ten consecutive quarters Santa Cruz County Bank has been rated a 4-Star "excellent" bank by Bauer Financial Services for its financial performance.

ANNUAL MEETING NOTICE

The Bank's Annual Meeting of Shareholders will be held on May 17, 2011 at Bittersweet Bistro at 3:00 p.m. Pacific Standard Time.

FIRST QUARTER HIGHLIGHTS

The Bank received LEED gold certification for the interior remodel of its Santa Cruz office.

Santa Cruz County Bank was designated as a Super Premier Performing Bank by Findley Reports for its 2010 financial performance.

Santa Cruz County Bank received its tenth consecutive 4-Star "excellent" rating by Bauer Financial Reports for the quarter ended December 31, 2010.

The Bank achieved a "Gold Can" level community recognition award for collecting over 10,000 pounds of food for Second Harvest's 2010 Holiday Food Drive.

The Bank achieved a "Bronze Award" from United Way for its 2010 employee campaign.

ABOUT SANTA CRUZ COUNTY BANK

Headquartered in Santa Cruz, Santa Cruz County Bank is a full service bank serving the banking needs of individuals and businesses throughout Santa Cruz County.  The Bank operates five full-service banking offices and two self-serve banking centers, all of which have received a Green Business Certification Award by the Monterey Bay Area Green Business Program. The Bank's full-service banking offices are located in Aptos, Capitola, Santa Cruz, Scotts Valley and Watsonville. The Bank commenced operations on February 3, 2004 in Santa Cruz.

Santa Cruz County Bank's common stock is listed on the Over the Counter (OTC) Bulletin Board under the stock symbol SCZC. More information on the Bank may be obtained through its website: www.sccountybank.com or by calling 831.457.5000.

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