Bank of Santa Clarita Announces Continued Improvement in Earnings and Promotions of Executives

SANTA CLARITA, Calif.--()--Bank of Santa Clarita (OTCBB: BSCA) today announced its results of operations for the second quarter and first half of 2014. For the second quarter of 2014 the Bank reported net earnings of $308,000, which exceeded the amount reported in the second quarter of 2013, and also represents the second-greatest quarterly earnings ever recorded by the Bank. The Bank also reported year-to-date net earnings of $556,000, a 4% increase over the amount reported in the first half of 2013.

The Bank reported that its loans totaled $167.6 million at quarter-end, an increase of $14.9 million or 10% from the June 30, 2013 total. In addition, deposits totaled $183.0 million at June 30, 2014, an increase of $13.9 million or 8% over the year-earlier date; this increase in deposits was comprised entirely of core deposits.

The Bank continues to experience very good credit quality in its loan portfolio, as nonaccrual loans totaled approximately $872,000 or 0.52% of total loans as of June 30, 2014.

“We are pleased to report another quarter of strong operating performance, as we continue to key in on our core earnings,” stated Frank Di Tomaso, Chairman and Chief Executive Officer. He continued, “Our performance continues to reflect the benefits of our strategic planning and a strong commitment to achieving meaningful growth and returns for our shareholders. We are also pleased with our sustained asset quality which is a reflection of the Bank’s historically strong underwriting standards.”

At June 30, 2014, shareholders’ equity totaled $22.8 million and the Bank’s total risk-based regulatory capital ratio was 13.42%, exceeding the “well-capitalized” level of 10% which is 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.

Additionally, the Bank’s Board of Directors, at its June meeting, announced the promotion of Walter Purdy, Chief Financial Officer, and Greg Weinberg, Chief Credit Officer, to the position of Executive Vice President of the Bank. “As the only community bank headquartered in the Santa Clarita Valley, it is important to have a knowledgeable and experienced team in place to enhance and grow our institution,” stated Mr. Di Tomaso.

Walt Purdy joined Bank of Santa Clarita in 2008 as a Senior Vice President and the Chief Financial Officer. He is responsible for investor relations and for directing the fiscal functions of the Bank by meeting all reporting requirements set forth by the Board and by regulatory and advisory agencies. Mr. Purdy also oversees the Bank’s strategic planning and budgeting functions and the Centralized Operations Department. He manages the Bank’s liquidity levels and asset/liability management function and financial statement preparation, and also develops and implements appropriate policies and procedures. Mr. Purdy has over 35 years of banking and savings & loan experience with both large and small financial institutions and holds a Bachelor of Science Degree in Accounting from California State University at Northridge.

Greg Weinberg joined Bank of Santa Clarita in 2006 as a Senior Vice President and the Chief Credit Officer. He is responsible for overseeing credit administration and the note department, maintaining high levels of portfolio quality, and directing loss mitigation and collections, developing and implementing loan policies and procedures. Mr. Weinberg has over 30 years of banking experience with both large and small financial institutions and holds a Bachelor of Science Degree in Finance from the University of California Los Angeles and a Master of Science Degree in Management from Thunderbird Graduate School of International Management in Phoenix, Arizona.

Founded in 2004, Bank of Santa Clarita is the only full service commercial bank headquartered in the Santa Clarita Valley and is focused on the needs of our 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 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 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 later this year Bank of Santa Clarita will celebrate its 10-Year Anniversary, and we truly cherish the relationships we’ve made with many of our neighbors, including individuals, businesses and local non-profits, and invite any of those in the community who do not yet know us well to visit us, and together we can build an even better 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 Bank’s 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 Bank’s operating results, its ability to attract deposit and loan customers, the quality of the Bank’s 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
 
June 30, December 31, June 30,
  2014   2013   2013

 

(In thousands)

ASSETS
Cash and Due From Banks $ 4,145 $ 3,142 $ 3,630
Interest Bearing Deposits at Other Financial Institutions 53,438 32,162 29,398
Federal Funds Sold 2,000 2,000 1,200
Investment Securities 30,148 34,580 31,540
Loans, Net 167,622 161,888 152,712
Other Assets   16,684   16,614   15,569
Total Assets $ 274,037 $ 250,386 $ 234,049
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest Bearing Demand Deposits $ 59,804 $ 53,390 $ 53,359
Interest Bearing Demand Deposits 10,182 12,409 8,261
Money Market and Savings Deposits 61,327 56,917 49,809
Time Deposits   51,731   58,457   57,632
Total Deposits 183,044 181,173 169,061
Borrowings 67,000 46,000 42,500
Other Liabilities   1,229   1,448   1,185
Total Liabilities 251,273 228,621 212,746
Stockholders' Equity   22,764   21,765   21,303
Total Liabilities & Stockholders' Equity $ 274,037 $ 250,386 $ 234,049
 
STATEMENTS OF EARNINGS        
Unaudited
 

For the Three Months Ended June 30,

For the Six Months Ended June 30,
  2014   2013     2014   2013  
Interest Income

(In thousands except per share amounts)

Loans $ 1,990 $ 1,936 $ 3,964 $ 3,723
Interest Bearing Deposits at Other Financial Institutions 41 25 78 48
Investment Securities 201 180 432 351
Federal Funds Sold   1   -     1   1  
Total Interest Income 2,233 2,141 4,475 4,123
Interest Expense
Interest Bearing Demand Deposits 9 7 19 16
Money Market and Savings Deposits 66 51 134 103
Time Deposits 195 216 400 429
Borrowings   126   84     238   216  
Total Interest Expense 396 358 791 764
 
Net Interest Income 1,837 1,783 3,684 3,359
Provision for Loan Losses   61   (20 )   61   (20 )
Net Interest Income after
Provision for Loan Losses 1,776 1,803 3,623 3,379
Noninterest Income 157 140 303 336
Noninterest Expense   1,456   1,458     3,020   2,842  
 
Net Earnings Before Income Taxes 477 485 906 873
Income Tax Expense   169   182     350   336  
Net Earnings $ 308 $ 303   $ 556 $ 537  
 
Basic Earnings Per Share $ 0.14 $ 0.14   $ 0.25 $ 0.24  
Diluted Earnings Per Share $ 0.14 $ 0.13   $ 0.25 $ 0.24  

Contacts

Bank of Santa Clarita
Frank Di Tomaso
Chairman of the Board of Directors and Chief Executive Officer
(661) 362-6000

Release Summary

BOSC 2014 Q2 Release

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Contacts

Bank of Santa Clarita
Frank Di Tomaso
Chairman of the Board of Directors and Chief Executive Officer
(661) 362-6000