Bank of Santa Clarita's Earnings Continue to Grow Significantly

Bank of Santa Clarita (BSCA) today announced that for the second quarter of 2018, earnings again reached record levels, as net earnings totaled $867,000, a 91% growth over its earnings for the second quarter of 2017; moreover, first half 2018 earnings totaled $1,476,000, 62% greater than it recorded in the first half of 2017.

In reviewing operating results for the first half of 2018, the Bank reported $4,543,000 of net interest income, representing a growth of 11% over the first half of 2017. While a significant contributor to the Bank's growth in net earnings was the reduction in the Federal statutory income tax rate, the Bank noted that pre-tax earnings for the first half of 2018 exceeded pre-tax earnings during 2017's first half by 36%.

The Bank reported total net loans of $222.6 million at June 30, 2018, an increase of 3% over the total reported at the year-earlier date. The Bank also noted that deposits totaled $247.4 million at June 30, 2018, representing a growth rate of 4% over the year-earlier total. In addition, the Bank continues to have excellent credit quality in its loan portfolio, as it had only $12,000 of nonaccrual loans at June 30, 2018.

Frank Di Tomaso, Chairman of the Board and Chief Executive Officer, commented "We are proud to announce another quarter of record operating results, largely driven by continued healthy growth in loans and deposits, and also due to maintaining a conservative credit culture within the Bank. Specifically, Bank of Santa Clarita posted net earnings for the first half of 2018 totaling $1.48 million, representing a 62% year-over-year growth rate." Mr. Di Tomaso added "This strong performance is the result of our efforts to meet the banking needs of our community while positioning the Bank for the effects of increasing interest rates, and also changes in the regulatory environment."

At June 30, 2018, shareholders' equity totaled $31.1 million and the Bank's total capital ratio was 13.78%, significantly exceeding the "well capitalized" level prescribed in the applicable capital regulations. The Bank also continues to maintain substantial liquidity positions, retaining significant balances of liquidity on its balance sheet as well as readily available collateralized borrowings and other potential sources of liquidity.

Founded in October 2004, Bank of Santa Clarita is the only full-service commercial bank headquartered in the Santa Clarita Valley, and is focused on the needs of the community and its businesses. We promote face-to-face interaction with our clients, which in turn leads to deeper relationships overall. The Bank provides local, experienced decision-making and the personalized service that growing businesses need on a daily basis. Bank clients have direct access to executive management and experienced professional staff members to address their credit requirements, from commercial lines of credit to SBA loans to commercial real estate and other commercial loans, and also technology-based services that include online bill-paying, remote capture depositing, check imaging and initiating online wire transfers, among other cash management facilities.

We are proud of the fact that Bank of Santa Clarita has served the Santa Clarita Valley's residents, including individuals, small businesses and non-profit organizations, since 2004, and we truly appreciate the relationships we've made with many of our neighbors, and invite any of those in the community who do not yet know us well to visit us, and together we can continue to build an even more vibrant and healthy community.

Bank of Santa Clarita, Corporate Headquarters

23780 Magic Mountain Parkway

Santa Clarita, California 91355

(661) 362-6000

www.bankofsantaclarita.com

FORWARD LOOKING STATEMENTS

Certain matters discussed in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to the Bank's current expectations regarding deposit and loan growth, operating results and the strength of the local economy. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to: the impact of changes in interest rates, a decline in economic conditions and increased competition among financial service providers as these factors may impact the Bank's operating results, its ability to attract deposit and loan customers, the quality of the Bank's earning assets and government regulation. The Bank does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.

BANK OF SANTA CLARITA
BALANCE SHEETS
Unaudited
			June 30,			December 31,			June 30,
			2018			2017			2017
		(In thousands)
ASSETS
Cash and Due From Banks		$	6,674		$	6,595		$	5,631
Interest Bearing Deposits at Other Financial Institutions			42,935			41,200			56,405
Federal Funds Sold			102			1,000			3,000
Investment Securities			16,560			15,989			17,307
Loans, Net			222,647			221,612			215,218
Other Assets			21,256			21,820			22,153
Total Assets		$	310,174		$	308,216		$	319,714
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Interest-Bearing
Money Market, Savings and Demand		$	88,499		$	92,156		$	95,254
Time			63,668			59,058			60,406
Total Interest-Bearing			152,167			151,214			155,660
Noninterest-Bearing			95,239			79,067			82,339
Total			247,406			230,281			237,999
Borrowings			29,000			46,000			51,000
Other Liabilities			2,662			2,778			2,522
Total Liabilities			279,068			279,059			291,521
Stockholders' Equity			31,106			29,157			28,193
Total Liabilities & Stockholders' Equity		$	310,174		$	308,216		$	319,714

STATEMENTS OF EARNINGS
Unaudited
		For the Three Months Ended June 30,						For the Six Months Ended June 30,
			2018			2017			2018			2017
		(In thousands)
Interest Income
Loans		$	2,591		$	2,265		$	5,060		$	4,503
Interest Bearing Deposits at Other Financial Institutions			247			177			474			321
Investment Securities			48			78			141			146
Federal Funds Sold			-			8			2			14
Total Interest Income			2,886			2,528			5,677			4,984
Interest Expense
Interest Bearing Demand Deposits			26			16			45			33
Money Market and Savings Deposits			109			112			218			217
Time Deposits			228			182			414			353
Borrowings			203			154			457			285
Total Interest Expense			566			464			1,134			888
Net Interest Income			2,320			2,064			4,543			4,096
Provision for Loan Losses			(68)			109			(70)			69
Net Interest Income after
Provision for Loan Losses			2,388			1,955			4,613			4,027
Noninterest Income			154			196			312			397
Noninterest Expense			1,353			1,375			2,824			2,877
Net Earnings Before Income Taxes			1,189			776			2,101			1,547
Income Tax Expense			322			322			625			638
Net Earnings		$	867		$	454		$	1,476		$	909

View source version on businesswire.com: https://www.businesswire.com/news/home/20180713005424/en/