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Lighthouse Bank Reports Record Earnings for the Year Ended December 31, 2016 with Solid Growth in Assets, Loans, and Deposits
Santa Cruz, Calif., January 20, 2017 -
Locally owned Lighthouse Bank (OTC-QB: LGHT) today released unaudited financial results for the quarter-ended December 31, 2016 and year ended December 31, 2016.
CEO Lane Lawson commented, "We are pleased to report our 30th successive quarter of profitable operations. The Bank posted a record $991 thousand net income for the fourth quarter and record year-end earnings of $2.53 million as of December 31, 2016. Continued growth of our balance sheet in 2016 contributed to reaching a record of $218 million in total assets. The opening of our new headquarters at 2020 North Pacific Avenue, along with the return of Jon Sisk and the exceptional performance of our entire team, contributed positively to our overall success in 2016. We look forward to continued success in 2017."
The Bank experienced solid loan and deposit growth during the year. Gross loans increased $32 million, or 23%, year-over-year, to $169 million. Total deposits increased $35 million, or 23%, to $187 million.
Overall positive performance continues to be driven by the Bank's control of overhead expenses and growth in loans and deposits.
The Bank's loan loss reserve of 2.38% of gross loans remained significantly above the industry average for banks of all sizes. The Bank continues to maintain exceptional credit quality with no past-due loans and no non-performing loans at year-end 2016.
Financial Highlights presented below:
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2016
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2015
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Change
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BALANCE SHEET
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Total assets
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$ 218,069,473
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$ 182,021,349
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20%
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Gross loans
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169,368,657
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137,510,474
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23%
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Allowance for loan losses
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4,024,530
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3,300,251
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22%
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Non-interest-bearing deposits
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40,982,537
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35,701,970
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15%
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Total deposits
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186,635,919
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151,740,262
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23%
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Shareholders' equity
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30,872,471
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27,568,725
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12%
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NET INCOME
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$ 2,532,898
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$ 2,350,030
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8%
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RATIOS
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2016
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2015
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Net interest margin*
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4.89%
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4.67%
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Equity capital-to-total assets
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14.20%
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15.10%
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Return on Average Assets*
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1.25%
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1.33%
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Return on Average Equity*
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8.59%
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8.85%
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Allowance for Loan Losses-to-Total Loans
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2.38%
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2.40%
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Non-Performing Assets-to-Total Assets
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0.00%
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0.00%
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Efficiency Ratio*
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51.80%
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52.60%
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*Average for annual period
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SHARE INFORMATION
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Earnings per share (basic)
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$ 1.08
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$ 1.05
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Book value per share
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$ 12.81
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$ 12.23
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Total common shares outstanding
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2,409,570
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2,253,486
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FOURTH QUARTER EARNINGS
Net Income of $991 thousand for the quarter-ended December 31, 2016 increased 91% compared to the prior quarter (9/30/16) and increased $282 thousand, or 40%, comparing this quarter with the same quarter in 2015.
FINANCIAL HIGHLIGHTS:
- Fourth Quarter 2016 Return on Average Assets and Equity of 1.83% and 13%, respectively
- Quarter-ended December 31, 2016 Net Interest Margin was 4.97%
- $2.53 million in net income for the year-ended December 31, 2016, an increase of $183 thousand, or 8%, year-over-year
- 23% growth in gross loans, $32 million increase year-over-year
- 23% growth in deposits, $35 million increase year-over-year
- Well capitalized with a Total Capital Ratio of 16.1% at December 31, 2016
- 2.38% allowance for loan losses to total loans. Bank continues to maintain exceptional credit quality with no past-due loans and no non-performing loans at each year-ended period
- Book value per share increased by $0.58, to $12.81 at December 31, 2016
For the quarter-ended December 31, 2016, total shareholders' equity increased by $1.3 million, or 4%, to $30.9 million. Year-over-year, shareholders' equity increased $3.3 million, or 12%.
In October, 2016, the Bank declared its second $0.08 per share quarterly cash dividend to shareholders, which was 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 January 2015, the Bank has paid $1,942,710 to shareholders.
During the quarter-ended December 31, 2016, the Bank continued with expansion plans for its first full-service branch location in Silicon Valley. The Cupertino location opened in December 2016 as a Loan Production Office. 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 initial 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 in 2016, of 6,199 total banking institutions.
For eighteen 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.
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 close at hand. Lighthouse Bank's unique worldwide ATM fee waiver program and complimentary business courier service expand the geographical reach throughout Santa Cruz County and the Silicon Valley. Lighthouse Bank is committed to operating an open, ethical and financially successful company without engaging in the corporate excesses that have characterized the financial services industry. All decisions are intended to contribute to the long-term success of its clients, employees, owners and the communities it serves. Lighthouse Bank has never been subject to either formal or informal regulatory action.
Lighthouse Bank is located at 2020 North Pacific Avenue in Downtown Santa Cruz, CA. Lighthouse Bank's common stock is listed 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.
Contact:
Lane Lawson
Chief Executive Officer
Ph. 831-600-4019
Member FDIC / Equal Housing Lender / SBA Preferred Lender
The attached 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 fluctuation 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.
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