LIGHTHOUSE BANK 
By SANTA CRUZ, Calif., Oct. 18, 2013 /PRNewswire/ -- Locally owned Lighthouse Bank (OTC Bulletin Board: LGHT) today released unaudited financial results for the 3rd quarter ended September 30, 2013. The Bank posted a $653 thousand profit for the period, representing the 17(th) successive quarter of profitable operations and record quarterly earnings. Lighthouse Bank has posted consecutive record earnings for each of the past 15 quarters. For the period, earnings surpassed the record set for the quarter ended June 30, 2013, and represented a 29% increase in earnings compared to the same period ended September 30, 2012. Shareholders' equity increased by $681 thousand to $22.3 million during the 3(rd) quarter of 2013. The Bank experienced solid growth in loans, up 7% from September 30, 2012. Deposits decreased 8% year-over-year, due to the departure of a single multimillion dollar short-term account during the 1(st) quarter of 2013. Overall positive performance continued to be driven by the Bank's control of overhead expenses and growth in the loan portfolio.
The Bank's loan loss reserve of 2.87% of gross loans remained significantly above the industry average of 1.75% for banks under $1 billion in size. The Bank had no nonperforming loans and no past due loans in excess of 30 days at September 30, 2013 and has experienced no loan losses year-to-date. Since opening in 2007, Lighthouse Bank's cumulative net loan losses have totaled only $184 thousand.
During the quarter, return on average equity increased to a record 11.76%. In spite of this extremely strong performance Lighthouse Bank stock (LGHT) continues to trade at under book value.
Lighthouse Bank will mark its 6(th) anniversary on October 29, 2013. Since opening, the Bank's consistently strong financial results continue to place it among industry leaders. The Bank is currently rated by Bauer Financial as 5-Star "Superior", the top rating given by the independent bank rating firm. The Findley Reports, a well known banking publication named Lighthouse Bank as a "Super Premier" performing bank, their highest ranking and FMC Consulting named Lighthouse Bank the top rated state chartered Bank on the Central Coast. Lighthouse Bank has no financial relationship with any of these rating agencies.
ABOUT LIGHTHOUSE BANK:
Lighthouse Bank is a locally owned and operated full-service commercial bank located in Santa Cruz, CA. The Bank offers a full array of banking products and services to businesses, professionals, individuals, developers and commercial property owners. The Bank is dedicated to providing exceptional personalized service and access to decision makers who are always close at hand. The Bank offers a unique worldwide ATM fee rebate program and complimentary business courier service which expands the geographical reach of its banking office location throughout Santa Cruz County. Lighthouse Bank is committed to operating an open, ethical and financially successful company without engaging in the corporate excesses that have come to characterize the financial services industry. All decisions are intended to contribute to the long-term success of its clients, employees, owners and the community it serves. The Bank received no TARP funds and has neither accepted nor requested government assistance of any kind. Lighthouse Bank has never been subject to either formal or informal regulatory action.
Lighthouse Bank is located at 111 Mission Street in Downtown Santa Cruz, CA. Lighthouse Bank's common stock is listed on the Over-the-Counter (OTC) Bulletin Board under the stock symbol LGHT. More Information on the Bank may be obtained through its website www.lighthousebank.net or by calling 831-600-4000.
Selected Financial Data (unaudited)
Quarter-Ended Change Quarter-Ended Change Year-to-Date Ended Change
------------------ ------
9/30/2013 6/30/2013% 9/30/2012* % 9/30/2013 9/30/2012* %
--------- ---------- ---------- --- --------- ---------- ---
Balance Sheet
Total assets $160,699,244 $160,088,961 0% $171,533,262 -6%
Gross loans 100,119,098 101,845,479 -2% 93,756,667 7%
Allowance for loan
losses 2,874,031 2,874,031 0% 2,807,916 2%
Non interest-
bearing deposits 33,021,385 32,208,453 3% 38,921,706 -15%
Total deposits 137,647,912 137,893,677 0% 150,387,191 -8%
Shareholders' equity 22,270,053 21,588,909 3% 20,421,740 9%
Income Statement
Interest income 2,036,849 1,865,314 9% 1,768,810 15% $5,701,431 $5,261,193 8%
Interest expense 106,932 108,506 -1% 148,291 -28% 329,049 446,107 -26%
------- ------- ------- ------- -------
Net interest income 1,929,917 1,756,808 10% 1,620,519 19% 5,372,382 4,815,086 12%
Provision for loan
losses - - 0% 90,000 -100% - 198,000 -100%
Non-interest income 105,810 79,924 32% 88,596 19% 268,484 269,592 0%
Non-interest expense 978,861 947,600 3% 895,887 9% 2,876,232 2,767,069 4%
------- ------- ------- --------- ---------
Net income before
taxes 1,056,866 889,132 19% 723,228 46% 2,764,634 2,119,609 30%
Income tax expense
(benefit) 403,749 328,958 23% 266,171 52% 1,030,702 780,066 32%
------- ------- ------- --------- -------
Net income $653,117 $560,174 17% $457,057 43% $1,733,932 $1,339,543 29%
======== ======== ======== ========== ==========
Earnings per share
(basic) * $0.31 $0.26 19% $0.21 48% $0.81 $0.63 29%
Book value per share
* $10.41 $10.09 3% $9.54 9% $10.41 $9.54 9%
Ratios
Net interest margin 4.91% 4.57% 4.07%
Equity capital-to-
total assets 13.9% 13.5% 11.9%
Return on Average
Assets 1.59% 1.41% 1.09%
Return on Average
Equity 11.76% 10.46% 9.03%
Allowance for Loan
Losses-to-Total
Loans 2.87% 2.82% 2.99%
Non-Performing
Assets-to-Total
Assets 0.20% 0.20% 0.52%
Efficiency Ratio 48.1% 51.6% 52.4%
* -adjusted for 5%
stock dividend of
3/8/13
SOURCE Lighthouse Bank
