posted a $366 thousand profit for the 3rd quarter ended September 30, 2011, representing the Bank's 9th successive quarter of profitable operations and record quarterly earnings for the four year old Bank. For the period, earnings surpassed the $340 thousand record set at the quarter ended June 30, 2011, and represented a 70% increase in earnings compared to the same period ended September 30, 2010. Year-to-date earnings for the first nine months of 2011 were $1.03 million. Shareholders' equity increased by $373 thousand to $18.3 million during the 3rd quarter of 2011. The Bank experienced strong growth in both loans and deposits during the quarter.

A milestone during the quarter, deposits increased to over $100 million. Total loans surpassed $77 million reflecting the Bank's deployment of deposits back into the community as loans. Lighthouse Bank has continued to maintain capital that is substantially in excess of the "well capitalized" designation established by financial regulators. The Bank's loan loss reserve of 3.37% of gross loans is also significantly above industry averages. The loan loss reserve was increased by $290 thousand during the quarter as the result of loan growth. The Bank had no past due loans in excess of 30 days at September 30, 2011. Total nonperforming assets of $405 thousand represented 0.3% of total assets and consisted of a single piece of residential real estate owned by the Bank. Total nonperforming assets decreased by $2.1 million during the quarter.