Lighthouse Bank Reports Strong Deposit and Loan Growth in Q2 2016, Surpasses $200 million in Assets  

Santa Cruz, Calif., July 22, 2016 - Locally owned Lighthouse Bank (OTC-QB: LGHT) today released unaudited financial results for the quarter-ended June 30, 2016. The Bank posted a $500 thousand profit for the period, representing the 28th successive quarter of profitable operations for the eight-year-old Bank. The Bank hit a milestone in the quarter reaching $201 million in Total Assets, an increase of $25.2 million, or 14%, from June 30, 2015.  
The Bank experienced solid loan growth during the quarter, up 16% from June 30, 2015, to $155 million. Year-over-year, loans increased $20.9 million. Credit quality continues to remain strong. During the quarter, deposits increased $15.6 million, or 10%, to $169.6 million, representing a 16% increase year-over-year from the period ended June 30, 2015. Overall positive performance continued to be driven by the Bank's control of overhead expenses and growth in the loan portfolio. 
Core earnings, Net Income before Loan Loss Provision, for the quarter was $792 thousand representing a $220 thousand, or 39%, increase compared to the quarter-ended March 31, 2016 and a $138 thousand, or 21%, increase year-over-year from the period ended June 30, 2015. Net Income after the Provision for Loan Losses for the quarter ending June 30, 2016 represented a $36 thousand, or 7%, decrease in earnings compared to the quarter-ended June 30, 2015. This decrease in earnings was a direct result of a $174,500, or 148%, increase in the Provision for Loan Losses year-over-year from the period ended June 30, 2015.
The Bank's loan loss reserve of 2.35% of gross loans remained significantly above the industry average for banks of all sizes. The Bank had one nonperforming loan, an SBA loan in the amount of $68,500, and no past due loans in excess of 30 days at the end of Q2-2016. Lighthouse Bank has not taken a loan loss in nearly 4 years and has experienced only a single loan loss since opening in 2007.
For the quarter, total shareholders' equity increased by $535 thousand to $29.1 million. Year-over-year, shareholders' equity increased $2.7 million, or 10%. The Bank has paid four consecutive quarterly cash dividends of $0.075 per share to shareholders since August, 2015. In January 2015, the Bank paid a special $0.40 per share cash dividend to shareholders, which followed two stock dividends granted in 2011 and 2013.
During the quarter, construction was completed and operations commenced at the Bank's new headquarters located at 2020 N. Pacific Avenue, Santa Cruz. In addition, the Bank continued with expansion plans for its first branch location that will be situated in Silicon Valley. The location, at 19240 Stevens Creek Blvd. in Cupertino, is adjacent to the new Main St. Cupertino Business Center and close to the 3.1 million sq. ft. Apple headquarters building now under construction. The Bank took possession of the Stevens Creek Blvd. site in March, 2016 and is currently working on tenant improvements. The contiguous nature of the Silicon Valley market to that of Santa Cruz, staff experience in that market, as well as community bank consolidations, have combined to provide a unique growth opportunity for Lighthouse Bank in Silicon Valley.
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. SNL Financial ranked Lighthouse Bank as the 66th highest performing community bank in the nation based on 2015 performance, of the 4,258 banks of asset size under $1 billion. ranked Lighthouse Bank as the 5th healthiest bank in the nation for 2016, of 6,199 total banking institutions. Bauer Financial has ranked the Bank as Five-Star "Superior" for strong financial performance. The Bank has received the top rating given by the independent bank rating firm for sixteen consecutive quarters. The Findley Reports banking publication named the Bank as a "Super Premier" performing bank for 2015, their highest ranking. Lighthouse Bank has no financial relationship with any of these rating agencies.

Lighthouse Bank 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 at


Lighthouse Bank is a locally owned and operated full-service commercial bank located in Santa Cruz, CA. The 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.  A unique worldwide ATM fee rebate program and complimentary business courier service expands the geographical reach of its banking office location 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 characterized the financial services industry.  All decisions are intended to contribute to the long-term success of its clients, employees, owners and the communities it serves. Lighthouse Bank has never been subject to either formal or informal regulatory action.  
Lighthouse Bank is located at 2020 North Pacific Avenue in Downtown Santa Cruz, CA. Lighthouse Bank's common stock is listed under the stock symbol LGHT.  More Information on the Bank may be obtained through its website or by calling 831-600-4000.
Lane Lawson
Chief Executive Officer
Ph. 831-600-4019  
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. 


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Lighthouse Bank | 2020 North Pacific Avenue | Santa Cruz | CA | 95060