Lighthouse Bank Declares Quarterly Cash Dividend Payment to Shareholders

Santa Cruz, Calif., October 26, 2015 -Lighthouse Bank (OTC-QB: LGHT) today announced that its Board of Directors has approved a Quarterly Cash Dividend in the amount of $0.075 per share. The dividend is payable on November 27, 2015, to shareholders of record at the close of business on November 9, 2015. The cash dividend is the result of the Bank's strong ongoing financial performance and significant capital strength. The cash dividend follows a Special $0.40 Cash Dividend paid in January 2015, a quarterly $0.075 Cash Dividend paid in August 2015, as well as the issuance of Stock Dividends by the Bank in both 2011 and 2013.

Lighthouse Bank recently reported results for the 3rd quarter of 2015, ending September 30, 2015. The Bank posted $611 thousand in earnings for the period and recorded its 25th consecutive quarter of profitable operations. The Bank is extremely well capitalized with Equity Capital-to-total assets of 15.3% and Shareholders' Equity of $26.9 million.

ABOUT LIGHTHOUSE BANK:

Lighthouse Bank is a locally owned and operated full-service commercial bank located in Santa Cruz, California. The Bank marks its 8th anniversary in October 2015. 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 is located at 111 Mission Street in Downtown Santa Cruz, CA. More Information on the Bank may be obtained through its website www.lighthousebank.net 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

831-600-4008

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