Bank of Santa Clarita Again Reports Record Levels of Earnings

Bank of Santa Clarita (BSCA) today announced that for the fourth quarter and full year of 2018, Bank earnings continue at record levels, as net earnings for the quarter totaled $795,000, more than doubling its earnings for the fourth quarter of 2017; moreover, net earnings for 2018 totaled $3,184,000, 73.5% greater than it recorded in 2017.

In reviewing operating results for 2018, the Bank reported $9,481,000 of net interest income, representing a growth of 10.8% over 2017. While a significant contributor to the Banks year-over-year growth in net earnings was the reduction in the Federal statutory income tax rate, the Bank noted that pre-tax earnings for 2018 totaled $4,509,000, and exceeded pre-tax earnings for 2017 by 29.7%.

The Bank reported total net loans of $229.5 million at December 31, 2018, an increase of 3.5% over the total reported at the end of 2017.

We once again are very pleased to report our most profitable year in the Banks history, recording a return on beginning-of-the-year equity of 10.9%, said Frank Di Tomaso, the Banks Chairman and Chief Executive Officer. Further, we are proud to remain a safe, strong bank, and I commend our team of banking professionals for its commitment to serve our clients, community and shareholders with excellence, which has always been the key driver of our success.

At December 31, 2018, shareholders equity totaled $33.1 million and the Banks total capital ratio was 14.48%, significantly exceeding the well capitalized level prescribed in the applicable capital regulations. The Bank also continues to maintain substantial liquidity positions, retaining significant balances of liquidity on its balance sheet as well as readily available collateralized borrowings and other potential sources of liquidity.

Bank of Santa Clarita, founded in 2004, is the only full-service commercial bank headquartered in the Santa Clarita Valley, and is focused on meeting the banking needs of the community and its businesses. We promote face-to-face interaction with our clients, which in turn leads to deeper relationships overall. The Bank provides local, experienced decision-making and the personalized service that growing businesses need on a daily basis. Bank clients have direct access to executive management and experienced professional staff members to address their credit requirements, from commercial lines of credit to SBA loans to commercial real estate and other commercial loans, and also technology-based banking services that include online bill-paying, remote capture depositing, check imaging and initiating online wire transfers, among other cash management facilities.

We are proud of the fact that Bank of Santa Clarita has served the Santa Clarita Valleys residents, including individuals, small businesses and non-profit organizations, for fourteen years, and we truly appreciate the relationships weve made with many of our neighbors, and invite any of those in the community who do not yet know us well to visit us, and together we can continue to build an even more vibrant and healthy community.

Bank of Santa Clarita, Corporate Headquarters 23780 Magic Mountain Parkway Santa Clarita, California 91355 (661) 362-6000 www.bankofsantaclarita.com

FORWARD-LOOKING STATEMENTS

Certain matters discussed in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to the Banks current expectations regarding deposit and loan growth, operating results and the strength of the local economy. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to: the impact of changes in interest rates, a decline in economic conditions and increased competition among financial service providers as these factors may impact the Banks operating results, its ability to attract deposit and loan customers, the quality of the Banks earning assets and government regulation. The Bank does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.

 
BANK OF SANTA CLARITA
 
 
BALANCE SHEETS
Unaudited
 
    December 31,
2018     2017
(In thousands)
ASSETS
Cash and Due From Banks $ 4,574 $ 6,595
Interest Bearing Deposits at Other Financial Institutions 36,000 41,200
Federal Funds Sold 104 1,000
Investment Securities 14,645 15,989
Loans, Net 229,456 221,612
Other Assets   22,630   21,820
Total Assets $ 307,409 $ 308,216
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Interest-Bearing
Money Market, Savings and Demand $ 74,132 $ 92,156
Time   58,453   59,058
Total Interest-Bearing 132,585 151,214
Noninterest-Bearing   97,435   79,067
Total 230,020 230,281
Borrowings 42,000 46,000
Other Liabilities   2,306   2,778
Total Liabilities 274,326 279,059
Stockholders’ Equity   33,083   29,157
 
Total Liabilities & Stockholders’ Equity $ 307,409 $ 308,216
 
 
STATEMENTS OF EARNINGS
Unaudited
 
    For the Three Months     For the Twelve Months
Ended December 31,   Ended December 31,
2018     2017 2018     2017
Interest Income (In thousands)
Loans $ 2,614 $ 2,495 $ 10,371 $ 9,425
Interest Bearing Deposits at Other Financial Institutions 246 205 979 737
Investment Securities 114 83 353 324
Federal Funds Sold   1   3   3     24
Total Interest Income 2,975 2,786 11,706 10,510
Interest Expense
Interest Bearing Demand Deposits 26 17 96 66
Money Market and Savings Deposits 103 126 435 482
Time Deposits 252 185 918 711
Borrowings   147   204   776     693
Total Interest Expense 528 532 2,225 1,952
 
Net Interest Income 2,447 2,254 9,481 8,558
Provision for Loan Losses   70   4   (50 )   98
Net Interest Income after
Provision for Loan Losses 2,377 2,250 9,531 8,460
Noninterest Income 174 180 616 756
Noninterest Expense   1,447   1,419   5,638     5,740
 
Net Earnings Before Income Taxes 1,104 1,011 4,509 3,476
Income Tax Expense   309   621   1,325     1,641
Net Earnings $ 795 $ 390 $ 3,184   $ 1,835
 

Frank Di Tomaso
Chairman of the Board of Directors and
Chief
Executive Officer

(661) 362-6000