Bank of Santa Clarita announced its operating results this week for the fourth quarter and full year 2012.
Bank of Santa Clarita, the only commercial bank headquartered in the Santa Clarita Valley, reported net earnings for the three months ending December 31, 2012 totaling $254,000, which represented a growth rate of more than 10% over the $223,000 reported for the fourth quarter of 2011.
Year-to-date net earnings for the years ended December 31, 2012 and 2011 were $559,000 and $381,000, respectively. The Bank also reported that 2012 pre-tax earnings, both for the fourth quarter and the full year, were at record levels, as pre-tax earnings for 2012, totaling $887,000, exceeded the $613,000 recorded in 2011 by $274,000, or approximately 45%. These totals for 2012 include the nonrecurring 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 $154.4 million as of December 31, 2012, grew $18.9 million or 14.0% from the $135.5 million reported as of December 31, 2011. The Bank also reported a growth in deposits of $17.3 million or 11.5% during 2012, which growth included an increase of $5.9 million or 13.7% 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 year ended December 31, 2012 increased $239,000 or 3.6% over the amount recorded in 2011, as the Bank has seen the overall effective cost of deposits in 2012 decline to 0.75%, as compared to 1.04% for 2011. The Bank’s 2012 earnings also benefited from the 2011 facility lease termination, as total facilities and other fixed asset-related costs declined to $868,000 in 2012 from $1,318,000 in 2011, an improvement of 34%.
The Bank continues to experience excellent credit quality in its loan portfolio, as nonaccrual loans totaled $6,000 at December 31, 2012, as compared to $16,000 at December 31, 2011 and $18,000 at December 31, 2010.
“In light of a challenging economic and regulatory environment, we are pleased with our fourth quarter operating results and with the year’s overall financial performance, which was marked by continued loan and deposit growth and an improvement in earnings,” stated Frank D. Di Tomaso, Chairman and Chief Executive Officer. Mr. Di Tomaso continued, “We are further encouraged by the Bank’s positive momentum, as it benefits from a long-term strategic plan that focuses on investment in the franchise through enhanced products and services, exceptional customer service, and a strong commitment to our community.”
At December 31, 2012, shareholders’ equity totaled $21.4 million and the Bank’s total risk-based regulatory capital ratio was 13.52%, 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.
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.