Bank of Santa Clarita Reports Another Banner Year

Bank of Santa Clarita (BSCA) today announced that for the fourth quarter and full year of 2019, Bank earnings continue at sound levels, as net earnings for the quarter totaled $658,000, moreover, net after-tax earnings for 2019 totaled $3,217,000, reflecting a slight 1% increase over the net earnings recorded in 2018.

In reviewing operating results for 2019, the Bank reported $9,251,000 of net interest income, representing a slight 2.4% decrease from 2018. Considering the continued drop in prime interest rates over the last year this slight decrease was fully anticipated. The Bank’s continued significant overhead efficiencies led to a drop in year over year non-interest expenses of $116,000, while non-interest income increased $127,000 for 2019. Both these factors promoted the Bank’s slight improvement in net annual earnings despite the changing market conditions.

The Bank reported total net loans of $232.9 million at December 31, 2019, an increase of 1.5% over the total reported at the end of 2018.

“We are happy to report continued record year-over-year earnings growth, including a return on beginning-of-the-year equity of 9.7%,” said Frank Di Tomaso, the Bank’s Chairman and Chief Executive Officer. “We are equally pleased with our asset quality, which is always a focus, and the Bank’s very strong capital position. As we move in to the new year we are just as excited about the prospect of further building upon these results. We are also grateful for the customer loyalty, diligent employee efforts and shareholder support that has allowed us to better position the Bank for sustainable future growth.”

At December 31, 2019, shareholders’ equity totaled $36.9 million and the Bank’s total capital ratio was 15.56%, 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 deposit capture, 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 Valley’s residents, including individuals, small businesses and non-profit organizations, for over fifteen years, and we truly appreciate the relationships we’ve 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
[phone]
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
		December 31,
			2019			2018
		(In thousands)
ASSETS
Cash and Due From Banks		$	4,903		$	4,574
Interest Bearing Deposits at Other Financial Institutions			33,659			36,000
Federal Funds Sold			109			104
Investment Securities			8,985			14,645
Loans, Net			232,935			229,456
Other Assets			23,792			22,630
Total Assets		$	304,383		$	307,409
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Interest-Bearing
Money Market, Savings and Demand		$	83,563		$	74,132
Time			63,875			58,453
Total Interest-Bearing			147,438			132,585
Noninterest-Bearing			84,639			97,435
Total			232,077			230,020
Borrowings			34,000			42,000
Other Liabilities			1,391			2,306
Total Liabilities			267,468			274,326
Stockholders' Equity			36,915			33,083
Total Liabilities & Stockholders' Equity		$	304,383		$	307,409
STATEMENTS OF EARNINGS
Unaudited
		For the Three Months Ended December 31,						For the Twelve Months Ended December 31,
			2019			2018			2019			2018
Interest Income		(In thousands)
Loans		$	2,629		$	2,614		$	10,808		$	10,371
Interest Bearing Deposits at Other Financial Institutions			201			246			981			979
Investment Securities			49			114			238			353
Federal Funds Sold			-			1			3			3
Total Interest Income			2,879			2,975			12,030			11,706
Interest Expense
Interest Bearing Demand Deposits			14			26			76			96
Money Market and Savings Deposits			144			103			454			435
Time Deposits			299			252			1,296			918
Borrowings			169			147			953			776
Total Interest Expense			626			528			2,779			2,225
Net Interest Income			2,253			2,447			9,251			9,481
Provision for Loan Losses			55			70			(40)			(50)
Net Interest Income after
Provision for Loan Losses			2,198			2,377			9,291			9,531
Noninterest Income			174			174			743			616
Noninterest Expense			1,431			1,447			5,522			5,638
Net Earnings Before Income Taxes			941			1,104			4,512			4,509
Income Tax Expense			283			309			1,295			1,325
Net Earnings		$	658		$	795		$	3,217		$	3,184

 

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