SANTA CRUZ, Calif., July 18 /PRNewswire-FirstCall/ -- Santa Cruz County Bank, a locally owned and operated fullservice community bank headquartered in Santa Cruz County, today announced financial results for the quarter ended June 30, 2008.
For the Bank's quarter ended June 30, 2008 compared to the previous quarter March 31, 2008:
* Total deposits increased by $4.2 million, 3%, to $170.5 million * Gross loans increased by $5.5 million, 4%, to $129.9 million * Total assets increased by $3.9 million, 2%, to $191.8 million
On a year to year basis, for June 30, 2008 compared to June 30, 2007, the Bank's:
* Total deposits increased by $44.7 million, 36% to $170.5 million * Gross loans increased by $34.9 million, 37% to $129.9 million * Total assets increased by $46.0 million, 32% to $191.8 million
The Bank reported after tax net income of $195,239 for the quarter ended June 30, 2008, compared to $184,607 reported for the quarter ended March 31, 2008. On a year to year basis, after tax net income for the six months ended June 30, 2008 was $379,846 as compared to $428,415 for six-months ended June 30, 2008.
Net interest income was $1,986,719 for the quarter ended June 30, 2008 compared to $1,987,660 reported for the quarter ended March 31, 2008. On a year to year basis, comparing the first six months ended June 30, 2007 to the same period in 2008, the Bank's net interest income increased by $351,200 or 10%.
Non-interest income for the quarter ended June 30, 2008 improved by 20% over the previous quarter to $376,497. For the first six months of 2007 compared to the same period in 2008, the Bank's non-interest income increased by $178,456 or 35%. Non interest deposits grew $6 million or 12% during the last quarter and 44% year over year to equal 32% of total deposits.
The Bank is subject to various regulatory capital adequacy requirements administered by the banking regulatory agencies. As of June 30, 2008, Santa Cruz County Bank surpassed all capital adequacy requirements to which it is subject and is rated "well capitalized", the highest possible ranking of capital strength by regulatory standards.
David V. Heald, President and Chief Executive Officer stated, "As we enter our third quarter of operations, we are pleased with our progress and steady growth, especially in this period of economic uncertainty. In the second quarter of this year, the impact of the Federal Reserve's year to date 225 basis point interest rate cuts impacted our net income; however positive growth in the Bank's non-interest income provides stable revenues despite interest rate cuts.
Santa Cruz County Bank does not originate residential mortgage loans and does not engage in subprime lending. The Bank's loan portfolio is sound and well reserved and our loan to deposit ratio is conservative. The Bank meets the lending needs of Santa Cruz County with safe and sound lending practices and through government guaranteed loan programs.
Recently, we successfully opened our new "green" banking facility in a prime location in downtown Santa Cruz and look forward to serving those individuals and businesses that have been missing the level of service that only a local community bank can provide." We believe this new "green" location will add to the Bank's market share in Santa Cruz County.
Highlights of recent activities: Santa Cruz County Bank was awarded Bauer Financial, Inc. Reports' 5-Star rating, its highest award, for its first quarter 2008 results. Two Santa Cruz County Bank offices received Green Business Certifications from the Monterey Bay Area Green Business Program. The opening of a new facility at 720 Front Street in downtown Santa Cruz on July 14, 2008, replacing its former office at 325 Soquel Avenue in Santa Cruz. The new facility was renovated to environmentally friendly standards certified by the U.S. Green Building Council. The facility has been registered with U.S. Green Building Council to achieve LEED(R) (Leadership in Energy and Environmental Design) Gold Commercial Interiors Certification. Once certified, the project will represent Santa Cruz County's first LEED for Commercial Interiors Certified building and bank designed to LEED Gold Certification standards of the U.S. Green Building Council. The LEED Green Building Rating System is the nationally accepted benchmark for the design, construction, and operation of high performance green buildings. Currently there is only one Bank in California with a LEED certified building. 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 four full-service banking offices, a Business Lending Office, and two stand alone ATM & Night Depository kiosks. The Bank's full-service banking offices are located in Capitola, Santa Cruz, Scotts Valley and Watsonville. The Bank first 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: http://www.sccountybank.com/ or by calling (831) 457-5000.
Forward-looking Statements
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) June 30, 2008 Quarter ended Quarter ended Change 6/30/08 3/31/08 $ % Balance Sheet Total assets $191,764,130 $187,861,217 $3,902,913 2% Gross loans 129,880,177 124,363,503 5,516,674 4% Allowance for loan losses 1,867,849 1,865,960 1,889 0% Non interest-bearing deposits 55,169,610 49,237,405 5,932,205 12% Total deposits 170,523,147 166,307,430 4,215,717 3% Shareholders' equity 19,016,223 19,430,476 (414,253) -2% Income Statement Interest income 2,713,553 2,787,355 (73,802) -3% Interest expense 726,834 799,695 (72,861) -9% Net interest income 1,986,719 1,987,660 (941) 0% Provision for loan losses 77,675 77,960 (285) 0% Non-interest income 376,497 312,725 63,772 20% Non-interest expense 1,943,775 1,898,845 44,930 2% Net income before taxes 341,766 323,580 18,186 6% Income tax expense/(credit) 146,527 138,973 7,554 5% Net income after taxes $195,239 $184,607 10,632 6% Ratios Net interest margin 4.56% 5.06% Equity capital-to-total assets 9.9% 10.3% Restated* Quarter ended Quarter ended Change 6/30/08 6/30/07 $ % Balance Sheet Total assets $191,764,130 $145,736,058 $46,028,072 32% Gross loans 129,880,177 94,982,174 $34,898,003 37% Allowance for loan losses 1,867,849 1,463,000 $404,849 28% Non interest-bearing deposits 55,169,610 38,256,212 $16,913,398 44% Total deposits 170,523,147 125,825,672 $44,697,475 36% Shareholders' equity 19,016,223 17,916,149 $1,100,074 6% Income Statement Six-months Six-months Change ended 6/30/08 ended 6/30/07 $ % Interest income $5,500,908 $5,067,744 $433,164 9% Interest expense 1,526,529 1,444,565 81,964 6% Net interest income 3,974,379 3,623,179 351,200 10% Provision for loan losses 155,635 187,000 (31,365) -17% Non-interest income 689,222 510,766 178,456 35% Non-interest expense 3,842,620 3,182,145 660,475 21% Net income before taxes 665,346 764,800 (99,454) -13% Income tax expense/(credit) 285,500 336,385 (50,885) -15% Net income after taxes $379,846 $428,415 (48,569) -11% Ratios Net interest margin 4.80% 5.64% Equity capital-to-total assets 9.9% 12.3% * The Bank's financial statements were restated to correct an error in the calculation of the Bank's deferred tax asset balance as of December 31, 2006.
