SANTA CRUZ, Calif., Oct. 29 /PRNewswire-FirstCall/ -- Santa Cruz County Bank, (BULLETIN BOARD: SCZC) , a locally owned and operated full-service community bank headquartered in Santa Cruz County, announced today its financial results for the third quarter-ended September 30, 2009.
Third Quarter Highlights:
For the Bank's third quarter-ended September 30, 2009 compared to prior quarter-ended June 30, 2009:
-- Total deposits increased by $20.5 million, 9%, to $239.2 million -- Gross loans decreased by $2.9 million, -2%, to $150.2 million -- Total assets increased by $20.9 million, 9%, to $262.0 million
The Bank reported after tax net income of $42,872 for the quarter-ended September 30, 2009, a 35% decrease compared to $66,243 for the quarter-ended June 30, 2009. On a quarter to quarter basis, comparing September 30, 2008 to September 30, 2009, the Bank's after tax net income increased by $623,492 or 107%.
The Bank allocated $402,000 for loan losses for the third quarter compared to $1,420,541 for the third quarter in 2008. At third quarter end, the Bank's allowance for loan losses was $2.5 million or 1.7% of gross loans, consistent with the prior quarter. The Bank recorded net charge offs of $435 thousand for the quarter. As of September 30, 2009, the Bank's total non-performing assets were less than 1% of total assets compared to 1.12% of total assets at June 30, 2009.
Net interest income improved to $2.6 million for the quarter-ended September 30, 2009 as compared to $2.5 million for the quarter-ended June 30, 2009. On a quarter to quarter basis, comparing September 30, 2008 to September 30, 2009, the Bank's net interest income increased $317,241 or 14%.
The Bank's non-interest bearing deposits represented 60% of total deposit growth during the quarter and represent 32% of total deposits as of September 30, 2009.
David V. Heald, President and Chief Executive Officer stated, "The extended economic stress on real estate, retail, and tourism requires continued active management of our customer base and the possible effects on our loan portfolio. We have remained very liquid investing our funds in quality assets. Our low cost of funds, due to our high ratio of non interest-bearing deposits to total deposits, places us in a position to manage risk in this economic environment and greatly benefit from improvement in credit markets. We consider economic conditions continually to determine our provisions and strategies to minimize risk and provide value for our shareholders."
Year to Year Highlights for Third Quarter:
For the Bank's third quarter-ended September 30, 2009 compared to the third quarter-ended September 30, 2008:
-- Total deposits increased by $43.0 million, 22%, to $239.2 million -- Gross loans increased by $11.2 million, 8%, to $150.2 million -- Total assets increased by $45.0 million, 21%, to $262.0 million 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, a Business Lending Office 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: http://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) Change ------ Quarter ended Quarter ended 9/30/09 6/30/09 $ % ------------- ------------- --- --- Balance Sheet Total assets $262,035,379 $241,166,471 $20,868,908 9% Gross loans 150,210,505 153,125,700 (2,915,195) -2% Allowance for loan losses 2,545,379 2,573,712 (28,333) -1% Non interest- bearing deposits 75,715,764 63,345,521 12,370,243 20% Total deposits 239,203,613 218,706,526 20,497,087 9% Shareholders' equity 19,452,637 19,052,975 399,662 2% Income Statement Interest income 2,948,926 2,870,110 78,816 3% Interest expense 376,941 385,148 (8,207) -2% ------- ------- Net interest income 2,571,985 2,484,962 87,023 4% Provision for loan losses 401,908 178,142 223,766 126% Non-interest income 537,675 518,866 18,809 4% Non-interest expense 2,622,623 2,718,055 (95,432) -4% --------- --------- Net income (loss) before taxes 85,129 107,631 (22,502) -21% Income tax expense (credit) 42,257 41,388 869 2% ------ ------ Net income (loss) after taxes $42,872 $66,243 (23,371) -35% ======= ======= Ratios Net interest margin 4.31% 4.58% Equity capital-to- total assets 7.4% 7.9% Change ------ Restated* Quarter ended 9/30/08 $ % ------------- --- ---- Balance Sheet Total assets $217,021,060 $45,014,319 21% Gross loans 138,982,747 11,227,758 8% Allowance for loan losses 2,950,484 (405,105) -14% Non interest- bearing deposits 63,735,823 11,979,941 19% Total deposits 196,218,915 42,984,698 22% Shareholders' equity 18,686,207 766,430 4% Income Statement Interest income $2,906,106 42,820 1% Interest expense 651,362 (274,421) -42% ------- Net interest income 2,254,744 317,241 14% Provision for loan losses 1,420,541 (1,018,633) -72% Non-interest income 496,505 41,170 8% Non-interest expense 2,348,316 274,307 12% --------- Net income (loss) before taxes (1,017,608) 1,102,737 108% Income tax expense (credit) (436,988) 479,245 110% -------- Net income (loss) after taxes $(580,620) 623,492 107% ========= Ratios Net interest margin 4.59% Equity capital-to- total assets 8.6%
Santa Cruz County Bank
CONTACT: David V. Heald, President, Chief Executive Officer, ext. 2116,
dheald@sccountybank.com, or Vic Davis, Senior Vice President, Chief Financial
Officer, ext. 2217, vdavis@sccountybank.com, both of Santa Cruz County Bank,
+1-831-457-5003
Web Site: http://www.sccountybank.com/
