Bank of Santa Clarita Announces Growing Profitability

Bank of Santa Clarita (BSCA) today announced that it again has achieved a record level of earnings during the first half of 2017. The Bank reported net earnings of $909,000, an improvement of more than 40% over the Bank's earnings during the first half of 2016, and the largest first-half net earnings in the Bank's history.

The Bank reported that total loans grew to $215.2 million during the first half of 2017, and continues to have excellent credit quality in its loan portfolio, as it had no nonaccrual loans at June 30, 2017. In reviewing first half 2017 earnings, the Bank reported a year over year growth in net interest income of 4%, as well as improvements in both noninterest income and noninterest expenses.

"At the mid-point of 2017, our results demonstrate an upward trend of loan growth, improved operating efficiency and strong earnings. Additionally, the Bank's asset quality metrics continue to be strong, as evidenced by the Bank having no nonaccrual loans at quarter end," said Frank D. Di Tomaso, Chairman and Chief Executive Officer. "What is particularly notable about this year's operating performance is our earnings, which are up 40% from the same period last year."

At June 30, 2017, shareholders' equity totaled $28.2 million and the Bank's total capital ratio was 12.77%, 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 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, for more than twelve years, and we cherish 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,
			2017			2016			2016
		(In thousands)
ASSETS
Cash and Due From Banks		$	5,631		$	6,068		$	11,121
Interest Bearing Deposits at Other Financial Institutions			56,405			33,813			48,140
Federal Funds Sold			3,000			3,000			3,000
Investment Securities			17,307			20,837			23,292
Loans, Net			215,218			209,346			209,527
Other Assets			22,153			20,527			20,727
Total Assets		$	319,714		$	293,591		$	315,807
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Interest-Bearing
Money Market, Savings and Demand		$	95,254		$	97,336		$	88,308
Time			60,406			62,257			46,099
Total Interest-Bearing			155,660			159,593			134,407
Noninterest-Bearing			82,339			86,356			78,238
Total			237,999			245,949			212,645
Borrowings			51,000			19,000			75,500
Other Liabilities			2,522			1,545			1,160
Total Liabilities			291,521			266,494			289,305
Stockholders' Equity			28,193			27,097			26,502
Total Liabilities & Stockholders' Equity		$	319,714		$	293,591		$	315,807
STATEMENTS OF EARNINGS
Unaudited
		For the Three Months Ended June 30,						For the Six Months Ended June 30,
			2017			2016			2017			2016
		(In thousands)
Interest Income
Loans		$	2,265		$	2,276		$	4,503		$	4,320
Interest Bearing Deposits at Other Financial Institutions			177			110			321			202
Investment Securities			78			124			146			239
Federal Funds Sold			8			4			14			7
Total Interest Income			2,528			2,514			4,984			4,768
Interest Expense
Interest Bearing Demand Deposits			16			11			33			23
Money Market and Savings Deposits			112			101			217			198
Time Deposits			182			186			353			332
Borrowings			154			152			285			274
Total Interest Expense			464			450			888			827
Net Interest Income			2,064			2,064			4,096			3,941
Provision for Loan Losses			109			135			69			305
Net Interest Income after provision for Loan Losses			1,955			1,929			4,027			3,636
Noninterest Income			196			200			397			356
Noninterest Expense			1,375			1,471			2,877			2,948
Net Earnings Before Income Taxes			776			658			1,547			1,044
Income Tax Expense			322			270			638			415
Net Earnings		$	454		$	388		$	909		$	629

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