Lighthouse Bank

Seventh Year of Record Earnings for 7-Year-Old Lighthouse Bank


Santa Cruz, Calif., January 23, 2015 - Locally owned Lighthouse Bank (OTC-QB: LGHT) today released unaudited financial results for the 4th quarter-ended December 31, 2014. The Bank posted a $667 thousand profit for the period, representing the 22nd successive quarter of profitable operations for the seven-year old Bank. Profit for the fiscal year ended December 31, 2014 was a record $2.4 million and represented a 5% increase in earnings compared to the prior year. Return on average equity for the year was 10.01%. For the 12-month period, total shareholders' equity increased by 14% to $26 million. The Bank experienced strong growth in loans, up 19% year over year to $123 million. Deposits increased by 6% to $143 million from December 31, 2013. Overall positive performance continued to be driven by the Bank's control of overhead expenses and growth in the loan portfolio.


The Bank's loan loss reserve of 2.58% of gross loans remained significantly above the industry average for banks of all sizes. The Bank had no nonperforming loans, no nonperforming assets and no past due loans in excess of 30 days at year end. Lighthouse Bank has not taken a loan loss in nearly three years and has experienced only a single loan loss since opening in 2007.


During 2014, the Bank moved forward with predevelopment of its future headquarters site at 2020 N. Pacific Avenue, Santa Cruz. The property is located in the heart of downtown Santa Cruz and was purchased by the Bank in January 2014. Renovation and expansion of that facility is expected to begin in April 2015.


To accommodate ongoing growth, the Bank added to its lending group in 2014, principally in the areas of SBA and commercial lending. The Bank is well positioned, with seven Relationship Managers on staff, to serve the credit needs within the Santa Cruz County market and further the Bank's mission of direct community support.


A milestone during the year, the Bank declared a $.40/ share cash dividend in the fourth quarter of 2014, which was paid to shareholders on January 2, 2015. This represented the first cash dividend paid by the Bank after emerging from its 7 year DeNovo term, wherein the payments of cash dividends were not permitted. This followed two prior stock dividends granted in 2011 and 2013 that were allowed. Since opening, Lighthouse Bank's consistently strong financial results continue to place it at the top of the industry in a variety of categories including asset quality, capital adequacy, return on equity and operational efficiency. The price of the Bank's stock increased significantly during the year as a result of this strong performance. The Bank's stock (LGHT) is actively traded on the Over the Counter Bulletin Board via the Bank's market makers and online and full-service brokerage providers. More information on the Bank's stock and historical financial performance may be located on the Bank's website.



The Bank is rated by Bauer Financial as Five-Star "Superior" for strong financial performance, the top rating given by the independent bank rating firm. Lighthouse Bank is the only locally owned institution in Santa Cruz County with a Five-Star rating. The Findley Reports, a well known banking publication named the Bank as a "Super Premier" performing bank, their highest ranking, and FMC Consulting named Lighthouse Bank the top rated state chartered bank on the Central Coast. Lighthouse Bank has no financial relationship with any of these rating agencies.


Artist Rendering of Lighthouse Bank's Future Headquarters

2020 North Pacific Avenue, Santa Cruz 




Lighthouse Bank is a locally owned and operated full-service commercial bank located in Santa Cruz, California. The Bank marked its 7th anniversary in October 2014. Lighthouse Bank offers a full array of banking products and services to businesses, professionals, individuals, developers and commercial property owners. The Bank is dedicated to providing exceptional personalized service and access to decision makers who are always close at hand.  A unique worldwide ATM fee rebate program, business courier service, and remote deposit capture technology allow the Bank to expand its geographical reach throughout Santa Cruz County and the Silicon Valley. 


Lighthouse Bank is committed to operating an open, ethical and financially successful company without engaging in the corporate excesses that have come to characterize the financial services industry.  All decisions are intended to contribute to the long-term success of its clients, employees, owners and the community it serves. The Bank received no TARP funds and has neither accepted nor requested government assistance of any kind. Lighthouse Bank has never been subject to either formal or informal regulatory action.


Lighthouse Bank's stock (LGHT) is actively traded via the Bank's market makers and online and full-service brokerage providers. More information on the Bank's stock and historical financial performance may be located on the Bank's website.


Lighthouse Bank is located at 111 Mission Street in Downtown Santa Cruz, CA.  More Information on the Bank may be obtained through its website or by calling 831-600-4000.


Member FDIC / Equal Housing Lender / SBA Preferred Lender


The attached release may contain forward-looking statements that are subject to risks and uncertainties.  Such risks and uncertainties may include but are not necessarily limited to fluctuation in interest rates, inflation, government regulations and general economic conditions, and competition within the business areas in which the Bank is conducting its operations, including the real estate market in California and other factors beyond the Bank's control.  Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated.  Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof.  The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. 



For further information, please contact:

Richard Hofstetter

President and Chief Executive Officer







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