[BSC] – Bank of Santa Clarita announced its operating results Wednesday for the third quarter of 2012.

Bank of Santa Clarita, the only commercial bank headquartered in the Santa Clarita Valley, reported net earnings for the three months ending September 30, 2012 totaling $203,000, which represented a growth rate of more than 10% over the $184,000 reported for the third quarter of 2011.

Year-to-date net earnings for the nine months ended Sept. 30, 2012 and 2011 were $305,000 and $158,000, respectively. The results for 2012 increased by $147,000, or more than 90% over the total reported for the same period of 2011. These totals for 2012 include non-recurring costs announced earlier in 2012 and the Bank expects to benefit from the resulting lower cost structure in future periods.

The Bank’s net loan portfolio totaling $145.0 million as of September 30, 2012, had grown $9.5 million or 7.0% from the balance as of December 31, 2011. The Bank also reported a net growth in deposits of $11.4 million or 7.6% during the first three quarters of 2012, which net growth included an increase of $8.4 million or 19.4% in noninterest bearing demand deposits.

Largely resulting from the growth in loans and deposits (and particularly the growth in noninterest-bearing deposits noted above), the Bank’s net interest income for the nine months ended September 30, 2012 increased $221,000 or 4.5% over the amount recorded in the first three quarters of 2011, as the Bank has seen the overall effective cost of deposits in 2012 decline to 0.78%, as compared to 1.10% for the first three quarters of 2011. The Bank’s 2012 earnings also benefited from the 2011 facility lease termination, as total facilities and other fixed asset-related costs declined from $1,003,000 for the first three quarters of 2011 to $646,000 for the same period of 2012.

The Bank continues to experience excellent credit quality in its loan portfolio, as nonaccrual loans totaled $8,000 at September 30, 2012, as compared to $16,000 as of December 31, 2011 and $18,000 as of September 30, 2011.

“We are pleased to announce another excellent quarter for Bank of Santa Clarita, which is the result of the Bank’s conservative approach to managing risk and strong balance sheet growth. Total assets for the Bank now exceed $218 million, as our commercial lending and depository production continued to perform exceptionally well,” stated Chairman and Chief Executive Officer Frank Di Tomaso.

At September 30, 2012, shareholders’ equity totaled $21.6 million and the Bank’s total risk-based regulatory capital ratio was 14.32%, exceeding the “well-capitalized” level of 10% which is prescribed in 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.

About Bank of Santa Clarita

Bank of Santa Clarita, founded in 2004, is the only independent, full service commercial bank headquartered in the Santa Clarita Valley and generally serves the needs of retail consumers, small to mid-sized businesses, professionals, entrepreneurs, and high-net worth individuals. 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 SBA and other credit requirements, 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, which services enable its clients to effectively and efficiently manage their cash and credit needs.