Santa Cruz, Calif., October 21, 2016 - Locally owned Lighthouse Bank (OTC-QB: LGHT) today released unaudited financial results for the quarter-ended September 30, 2016. The Bank posted a $520 thousand profit for the period, representing the 29th successive quarter of profitable operations for the nine-year-old Bank. Lighthouse Bank hit another milestone in the quarter reaching $209 million in Total Assets, an increase of $33 million, or 19%, from September 30, 2015.
The Bank experienced solid loan growth during the quarter, up 8% from June 30, 2016, to $167 million. Year-over-year, loans increased $35 million. Credit quality continues to remain strong. During the quarter, deposits increased $9.4 million, or 6%, to $179 million, representing a 21% increase year-over-year from September 30, 2015. Overall positive performance continued to be driven by the Bank's control of overhead expenses and growth in the loan portfolio.
Core earnings, net income before loan loss provision, for the quarter was $860 thousand representing a $68 thousand, or 9%, increase compared to the quarter-ended June 30, 2016 and a $249 thousand, or 41%, increase year-over-year from the quarter ended September 30, 2015. Net Income after the Provision for Loan Losses for the quarter ending September 30, 2016 represented a $20 thousand, or 4%, increase in earnings compared to the quarter-ended June 30, 2016.
The Bank's loan loss reserve of 2.38% of gross loans remained significantly above the industry average for banks of all sizes. The Bank had one nonperforming loan, an SBA loan in the amount of $61,500, and no past due loans in excess of 30 days at the end of Q3-2016. Lighthouse Bank has not taken a loan loss in over 4 years and has experienced only a single loan loss since opening in 2007.
For the quarter, total shareholders' equity increased by $453 thousand to $29.6 million. Year-over-year, shareholders' equity increased $2.6 million, or 10%.
In July, 2016, the Bank announced an $0.08 per share quarterly cash dividend to shareholders, an increase of 6.67% over the four previous consecutive quarterly cash dividends of $0.075 per share. In early 2015, the Bank paid a special $0.40 per share cash dividend to shareholders, which followed two stock dividends granted in 2011 and 2013. Since December 2014, the Bank has paid $1,754,000 to shareholders.
During the quarter, the Bank continued with expansion plans for its first branch location that will be situated in Silicon Valley. The Cupertino location will operate as a Loan Production Office beginning in the 4th quarter, 2016. The location, at 19240 Stevens Creek Blvd. in Cupertino, is adjacent to the new Main St. Cupertino Business Center and close to the 3.1 million sq. ft. Apple headquarters building now under construction. The Bank took possession of the Stevens Creek Blvd. site in March, 2016 and recently completed tenant improvements. The contiguous nature of the Silicon Valley market to that of Santa Cruz, staff experience in that market, as well as community bank consolidations, have combined to provide a unique growth opportunity for Lighthouse Bank in Silicon Valley.
Lighthouse Bank's consistently strong financial results continue to place it at the top of the industry in a variety of categories including asset quality, capital adequacy, return on equity and operational efficiency. SNL Financial ranked Lighthouse Bank as the
130th highest performing community bank in the nation based on 2015 performance, of the 4,258 banks of asset size under $1 billion.
DepositAccounts.com ranked Lighthouse Bank as the 5th healthiest bank in the nation for 2016, of 6,199 total banking institutions. For
seventeen consecutive quarters, the Bank has been rated by Bauer Financial as
Five-Star "Superior" for strong financial performance, the top rating given by the independent bank rating firm. The Findley Reports banking publication named the Bank as a
"Super Premier" performing bank for 2016, their highest ranking. Lighthouse Bank has no financial relationship with any of these rating agencies.
Lighthouse Bank stock, (
LGHT) is actively traded via the Bank's market makers and online and full-service brokerage providers. More information on the Bank's stock and historical financial performance may be located on the Bank's website at
www.lighthousebank.net.
