The rock-solid Bank of Santa Clarita is growing so rapidly that it needs more elbow room. It will open a big, new corporate headquarters in 2013, the bank told investors in its second-quarter earnings report released July 22.
Deposits grew by 14 percent over the last 12 months to $150 million, while net loans grew by 11 percent, the bank reported. During the first six months of 2011, interest income rose to $3.23 million from $2.98 million.
Higher personnel costs and other noninterest expenses mirrored the growth, up $81,000 and $123,000 respectively.
Bank officials bit the bullet during the second quarter by launching a facilities plan that calls for the purchase of land and construction of a new operations facility to “accommodate expected growth for foreseeable future,” the bank said.
Officials expect the ongoing monthly depreciation of the new building to be “significantly less” than the monthly cost of its former corporate headquarters, which it leases.
The bank quashed its lease on that building in the second quarter, taking a $250,000 hit for the early termination. The calculated penalty forced the bank to post a loss of $56,000 on the quarter, versus year-ago profits of $111,000.
“We are pleased with our operating results, considering the second quarter charge we took resulting from our decision to exercise our option to terminate early a lease on one of our facilities,” bank President James D. Hicken said in a statement.
Added bank Chairman Frank D. DiTomaso: “It is always an honor to report to our shareholders the fact that our growth comes at a time when so many competing financial institutions have been forced to pull back. This growth is something we are very proud of, as it reflects an investment in our community.”
Founded in 2004, the Bank of Santa Clarita serves the needs of retail consumers, small to mid-sized businesses, professionals, entrepreneurs and high-net worth individuals.