Santa Cruz County Bank Reports Unaudited Results for Third Quarter Ended September 30, 2011

Bank reports 43% increase in net income over prior quarter, 69% increase for the nine months ended September 30, 2011 compared to prior year

Oct 18, 2011, 19:12 ET from Santa Cruz County Bank

SANTA CRUZ, Calif., Oct. 18, 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 third quarter ended September 30, 2011. For the period, the bank reported net income of $766,614 after taxes compared to $452,881 for the same period ended September 30, 2010, an improvement of 69%. Pretax income increased by 76% to $1.3 million. Net interest income for the period ended September 30, 2011 increased by $129,305 over the same period of the prior year.

Shareholders' equity for the quarter ended September 30, 2011 increased by $542,977 over the prior quarter ended June 30, 2011 and increased by $4.6 million comparing September 30, 2011 to September 30, 2010 which includes the issuance of 241,600 new shares and the addition of $2.5 million in equity in the quarter ending December 31, 2010. Basic earnings per share for the quarter ended September 30, 2011 were $0.40, which includes the aforementioned new shares, compared to $0.27 for the third quarter of the prior year. Net interest margin for the third quarter ended September 30, 2011 was 4.14% as compared to 4.30% for the third quarter of 2010.

David Heald, President and CEO, commented, "We are very pleased with our 5-Star rating by Bauer Financial in recognition of our financial performance in the second quarter. This rating combined with our reputation for superior customer service, and the community's strong sentiment for 'locally owned' continues to drive new business through our doors. This quarter we reached the milestone of over $300 million in assets. We continue to focus on operating efficiencies and loan growth to further improve earnings and shareholder value."

QUARTER TO QUARTER: SEPTEMBER 30, 2011 COMPARED TO JUNE 30, 2011


Total deposits increased $14.0 million, 5% to $284.9 million

Gross loans increased $4.9 million, 3% to $177.2 million

Total assets increased $14.7 million, 5%, to $313.9 million

Net income increased $232 thousand, 43%, to $767 thousand


NINE-MONTHS ENDED: SEPTEMBER 30, 2011 COMPARED TO SEPTEMBER 30, 2010


Total deposits increased $19.7 million, 7% to $284.9 million

Gross loans increased $10.4 million, 6% to $177.2 million

Total assets increased $20.7 million, 7%, to $313.9 million

Net income increased $655 thousand, 61%, to $1.8 million




The bank's non-interest income increased $313,280 to $1.1 million as of September 30, 2011 compared to the third quarter of the prior year.

Non-interest bearing deposits represented 39% of total deposits as of September 30, 2011, one of the strongest ratios in the industry.

Santa Cruz County Bank has been rated a 5-Star "superior" bank by Bauer Financial, Inc. for its financial performance for the second quarter ended June 30, 2011. Previous to this rating Santa Cruz County Bank was rated 4-Star "excellent" for eleven consecutive quarters.

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.

Selected Financial Data (unaudited)

September 30, 2011


















Change



Change




Change


Quarter ended 9/30/11

Quarter ended 6/30/11

$

%


Quarter ended 9/30/10

$

%


Year ended 12/31/10


$

%















Balance Sheet




























Total assets

$ 313,850,937

$ 299,105,147

$ 14,745,790

5%


$ 293,135,211

$ 20,715,726

7%


$ 284,906,203


$ 28,944,734

10%

Gross loans

177,249,886

172,349,451

4,900,435

3%


166,812,652

10,437,234

6%


181,450,788


(4,200,902)

-2%

Allowance for loan losses

4,013,614

3,815,266

198,348

5%


3,515,415

498,199

14%


3,558,521


455,093

13%

Non interest-bearing deposits

109,682,502

97,628,052

12,054,450

12%


95,912,626

13,769,876

14%


94,326,653


15,355,849

16%

Total deposits

284,906,192

270,885,162

14,021,030

5%


265,159,044

19,747,148

7%


253,416,044


31,490,148

12%

Shareholders' equity

25,554,038

25,011,061

542,977

2%


20,968,366

4,585,672

22%


23,570,352


1,983,686

8%















Income Statement












Change











Nine-months ended 9/30/11

Nine-months ended 9/30/10

$

%

Interest income

3,222,547

3,227,189

(4,642)

-0.1%


3,167,389

55,158

2%


$     9,622,073

$   9,409,050

$      213,023

2%

Interest expense

145,094

147,329

(2,235)

-2%


219,241

(74,147)

-34%


447,109

778,341

(331,232)

-43%

Net interest income

3,077,453

3,079,860

(2,407)

-0.1%


2,948,148

129,305

4%


9,174,964

8,630,709

544,255

6%















Provision for loan losses

230,000

300,000

(70,000)

-23%


300,000

(70,000)

-23%


1,112,500

851,099

261,401

31%

Non-interest income

1,079,556

766,276

313,280

41%


628,662

450,894

72%


2,728,057

1,709,225

1,018,832

60%

Non-interest expense

2,602,802

2,666,764

(63,962)

-2%


2,523,988

78,814

3%


7,859,622

7,636,075

223,547

3%

Net income before taxes

1,324,207

879,372

444,835

51%


752,822

571,385

76%


2,930,899

1,852,760

1,078,139

58%

Income tax expense/(credit)

557,593

344,406

213,187

62%


299,941

257,652

86%


1,175,782

762,750

413,032

54%

Net income after taxes

$        766,614

$        534,966

231,648

43%


$        452,881

313,733

69%


$     1,755,117

$   1,090,010

665,107

61%















BASIC EARNINGS PER SHARE

$              0.40

$              0.28




$              0.27




$              0.92

$            0.65



Book value per share

$            13.29

$            13.10




$            12.58






















Ratios














Net interest margin

4.14%

4.64%




4.30%




4.48%

4.48%



Equity capital-to-total assets

8.1%

8.4%




7.2%




8.3%

7.2%





SOURCE Santa Cruz County Bank



RELATED LINKS

http://www.sccountybank.com