posted a $398 thousand profit for the 4th quarter ended December 31, 2011, representing the Bank's 10th consecutive quarter of profitable operations and record quarterly earnings for the four year old Bank. Profit for the fiscal year ended 12-31-11, was a record $1.4 million and represented a 121% increase in earnings over the prior year. For the 12-month period, shareholders' equity increased by 8% to 18.7 million, while total assets increased by 23% to $143 million. The Bank continued to experience significant growth in both loans and deposits which year over year increased by $17.2 million and $27.7 million, respectively. Contributing positive performance factors included the Bank's ability to control overhead expense and success in generating and maintaining a portfolio of quality assets. Nonperforming assets represented an immaterial $396 thousand, or less than .3% of total assets, at 12-31-11. As a result of these positive factors the Bank issued a 10% stock dividend to owners on December 5, 2011.

Lighthouse Bank has maintained capital that is substantially in excess of the "well capitalized" designation established by financial regulators. The Bank's loan loss reserve is also conservatively maintained which at 3.30% of gross loans is well above the industry average. The loan loss reserve was increased by $930 thousand during 2011 as a result of loan growth. During its four years of operation, Lighthouse Bank has never experienced a loan loss and had no past due loans in excess of 30 days at 12-31-11.