Tenth successive year of record earnings
Assets over $1.4 billion
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SANTA CRUZ, Calif., Jan. 27, 2021 /PRNewswire/ -- Santa Cruz County Bank (OTC Pink: SCZC), with assets over $1.4 billion, is a top rated community bank headquartered in Santa Cruz County. Today the bank announced unaudited earnings for the fourth quarter and year ended December 31, 2020. Net income for the year was a record $17.5 million, an increase of $5.3 million, or 43%, over prior year. Santa Cruz County Bank Board Chairman and acting CEO, William J. Hansen, commented, "We are pleased to deliver another record setting year of financial performance to our shareholders. In 2020, we successfully completed the integration of Lighthouse Bank, issued funding to support businesses through the Paycheck Protection Program and seamlessly repositioned over a third of our workforce to work remotely during the COVID-19 Pandemic and the wildfire evacuations. We begin our seventeenth year with the opening of our newest branch located in Monterey and the resources necessary to support small businesses through the PPP as well as traditional financing. We look forward to welcoming our new President and CEO Krista Snelling on March 1st and the Bank's continued growth and profitability under her skilled leadership in the years ahead."  
Selected Unaudited Financial Information:
Fourth Quarter Earnings
For the fourth quarter 2020, net income was $4.0 million, compared to $5.3 million in the third quarter and $3.0 million in the fourth quarter of 2019. In quarter four 2020, $2.1 million was provided for loan loss reserves reflecting an increase in core loans of over $84 million during the same period. A provision of $360 thousand was recorded for loan losses in the third quarter of 2020. Pretax income for the quarter ended December 31, 2020 was $5.7 million compared to $7.5 million for the previous quarter ended September 30, 2020. Basic earnings per share for the fourth quarter ended December 31, 2020 was $1.05 per share, a 24% or $0.20 per share increase over the same period in 2019. Year to Date Earnings
Net income for the year ended December 31, 2020 was $17.5 million compared to $12.3 million for the same period in 2019. Pretax income for the year ended December 31, 2020 was $24.7 million compared to $17.4 million in the same period in 2019. Expense associated with the Lighthouse Bank merger was $351 thousand in 2020 compared to $3.3 million in 2019. Financial Highlights:
Pretax income of $24.7 million for the year, a new record
Net interest margin of 3.99%
Return on average assets of 1.35%
Return on average tangible equity of 12.72% 
Efficiency ratio of 48.32% for the year
Well capitalized with a total risk based capital ratio of 15.59%
Continued exceptional credit quality with only one loan for $31,000 on non-accrual
Book value per share after cash dividends increased by $4.50 or 11% to $43.74 at year end
Interest Income /Interest Expense and Net Interest Margin
Net interest income is the major earnings component of the Bank. Net interest income of $14.1 million for the quarter ended December 31, 2020 exceeded prior quarter by 9% or $1.1 million and improved over the 2019 fourth quarter by 26% or $2.9 million. For the twelve months ended December 31, 2020 and December 31, 2019, net interest income was $49.0 million compared to $35.2 million, respectively. The year over year increase is due primarily to the larger volume of the combined earning assets of both banks resulting from the merger and the addition of PPP Loans during 2020. The Bank's cost of funds is 0.19% for the quarter and 0.24% for the year. As of September 30, 2020 the Bank was in the 27th percentile of peers/median at 0.37%. Net interest margin at 3.99% declined 81 basis points from prior year but improved 28 basis points over the third quarter of 2020. The year over year reduction in net interest margin is due primarily to the Bank's asset sensitivity, which means earnings will follow in the same direction as rates. The Bank's loans and securities with contractual maturity/repricing over 3 years as a percentage of total assets was 27.52% at September 30, 2020, which is in the 13th percentile of peers, with the peer group median at 42.98%. Assets
Total assets at 2020 year-end increased by $351.9 million or 33% compared to prior year. This was due, in part, to asset growth generated through PPP loan origination and also planned organic growth such as expansion into Monterey County. With over 50% of PPP loans funded to non-customers, the Bank developed new business relationships in the tri-county market area and continues to capitalize on opportunities afforded by the PPP program. Comparing Q4 to Q3, total assets declined by $16.2 million to $1.423 billion because some loans obtained through the Federal Reserve Bank PPP Liquidity Facility were paid down as deposits continued to rise. Loans & Asset Quality
In the fourth quarter 2020, gross loans increased by $33.9 million, and year over year increased $479.7 million, 63% to $1.238 billion. Year over year growth represented a combination of PPP loan generation and core loan growth while Q4 resulted from $84.5 million in core loan growth as PPP loans were forgiven. Allowance for loan losses of $13.0 million at December 31, 2020 represents a $2.7 million, 26% increase over the same period last year. The Bank's asset quality remained exceptional with only $31 thousand in non-accrual at year-end and Management decided a $2.1 million provision for loan losses in Q4 was appropriate given the growth in core loans. Loans Past Due 30-89 Days
$68,513
0%
The Bank continues to experience good credit quality within its loan portfolio with minimal past due loans and one loan on non-accrual with limited loss potential. By proactively working with our clients throughout the pandemic, the Bank has received and processed COVID-related payment deferral requests which peaked in October at approximately 8% of the non-SBA portfolio, with 84% of deferrals secured by conforming real estate. In December many borrowers were able to resume regular payments and as of December 31, 2020, only 1.7% of the Banks' non-SBA portfolio was under a COVID-related payment deferral. The Bank continues to work closely with its customers to ensure their success. The passage of The Economic Aid Act will provide continued support for the Bank's SBA 7(a) portfolio with at least 3 months of payment support on behalf of the borrower. The Bank's exposure to the hospitality industry remains well managed as follows: exposure to hotels/motels at $95 million, a modest 63% of capital, and exposure to restaurants at $31 million or 20% of capital. Deposits
Deposits grew by 32% or $290.4 million since December 31, 2019, resulting in $552.6 million in non-interest bearing deposits at year-end. The Bank's total deposits, at a record $1.195 billion, increased by 1% or $15.1 million since September 30, 2020. Year over year, non-interest bearing deposits grew by 60%. Deposit growth between the third and fourth quarter in 2020 was primarily organic due to seasonal patterns. Year over year growth was enhanced by the PPP related deposits. Santa Cruz County Bank ranked 4th in overall deposit market share in Santa Cruz County, 1st in Santa Cruz and 2nd in Watsonville based upon FDIC data as of June 30, 2020. Composition of deposits and borrowings at December 31, 2020:                                               
Deposits:
40,364,392
Non-Interest Income / Expense
Non-interest income for the quarter ended December 31, 2020 was $1.2 million compared to $764 thousand for the same period last year with the difference concentrated within gains on SBA loans sold, which was $430 thousand in Q4 2020 versus none for the same period in 2019. For the full year, non-interest income was $4.2 million, an increase of 22% or $766 thousand from prior year. Non-interest income during 2020 improved over 2019 due to the combined totals of both banks even though the banking industry experienced a decline in service charge income due to the pandemic. Non-interest expense for the quarter ended December 31, 2020, excluding merger expense, was $7.4 million or 18% more than prior quarter and increased 68% or $3.0 million compared to the same period last year. On a year-to-date basis, non-interest expense, excluding merger expense, increased by 46%. Totals for 2020 reflect a full year of the combined operational expenses of Santa Cruz County Bank and Lighthouse Bank after the merger was completed in October of 2019 as well as the additional work force to provide PPP lending to the community. Shareholders' Equity
Total shareholders' equity was $168.5 million at December 31, 2020, a $17.4 million or 12% increase over December 31, 2019, primarily from 2020 earnings. Equity was reduced by the payout of cash dividends on common stock of $1.16 million in 2020. There was approximately $29 million of intangible assets on the books at December 31, 2020 due to the 2019 merger of which $25.8 million was Goodwill. For the year ended December 31, 2020, the Bank's return on average equity was 10.92% with a return on tangible equity of 12.72%. Return on average assets was 1.35%. The book value per share of Santa Cruz County Bank's common stock after cash dividends at December 31, 2020 was $43.74 up $4.50 from the same period in 2019. ABOUT SANTA CRUZ COUNTY BANK 
Santa Cruz County Bank was founded in 2004. It is a top-rated, locally-owned and operated, full-service community bank headquartered in Santa Cruz, California. The bank has eight branches: Aptos, Capitola, Cupertino, Monterey, Santa Cruz (2), Scotts Valley and Watsonville. Santa Cruz County Bank is distinguished from "big banks" by its relationship-based service, problem-solving focus, and direct access to decision makers. The bank is a leading SBA lender in Santa Cruz County and Silicon Valley. As a full-service bank, Santa Cruz County Bank offers competitive deposit and lending solutions for businesses and individuals; including business loans, lines of credit, commercial real estate financing, construction lending, agricultural loans, SBA and USDA government guaranteed loans, credit cards, merchant services, remote deposit capture, mobile and online banking, bill payment, and treasury management. True to its community roots, Santa Cruz County Bank has supported regional well-being by actively participating in and donating to local not-for-profit organizations. Santa Cruz County Bank stock is publicly traded on the OTC marketplace under the symbol SCZC. Stock purchase orders may be placed online, through a brokerage firm, or through Market Makers listed in the Investor Relations section of the bank's website. For more information about Santa Cruz County Bank, visit  www.sccountybank.com . NATIONAL, STATE, AND LOCAL RATINGS AND AWARDS 
S&P Global Top 100 Community Banks: ranked 4th in the nation out of more than 4,200 banks with assets under $3 billion based upon 2019 performance. The Bank has ranked in the Top 100 Community Banks by S&P Global for four consecutive years. Financial Management Consulting (FMC) Group: The Bank has ranked in FMC's top ten banks in California for the past five years. The Findley Reports, Inc.: The Bank has received the top ranking of Super Premier by Findley for ten consecutive years. Bauer Financial Reports, Inc.: The Bank is rated 5-star "Superior" based upon its financial performance. The Bank ranked 11th in the Silicon Valley for the number of SBA loans lent to Silicon Valley businesses for the SBA's 2020 fiscal year. COMMUNITY AWARDS AND RECOGNITION
Second Harvest Food Bank, Platinum Level Award for the 2019 Holiday Food & Fund Drive. Santa Cruz Sentinel, 2020 Reader's Choice Award, number one bank in Santa Cruz County as voted by Santa Cruz Sentinel readers. Good Times, 2020 Best of Santa Cruz County Award, Voted "Best Bank" for eight consecutive years. Santa Cruz Waves Magazine, 2020 Swellies Awards, Voted "Favorite Bank" in Santa Cruz County. This 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 fluctuations 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. Selected Financial Data (unaudited)

Santa Cruz County Bank Reports Record Earnings For Year Ended December 31, 2020

Double-Digit Year Over Year Growth in Assets, Loans, Deposits and EPS
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SANTA CRUZ, Calif., Oct. 21, 2020 /PRNewswire/ -- Santa Cruz County Bank (OTC Pink: SCZC), with assets over $1.4 billion, is a top rated community bank headquartered in Santa Cruz County. Today the Bank announced unaudited record net income for the third quarter ended September 30, 2020 of $5.3 million, an increase of 76%, compared to the same quarter in 2019. The Lighthouse Bank merger proxy projected earnings accretion to occur in 2020 and continue thereafter. Notwithstanding difficult economic conditions created by the onset of the COVID-19 pandemic, the projection was achieved in the third quarter of 2020. For the quarter ended September 30, 2020, basic earnings per share increased $0.15 or 12% to $1.39 compared to the third quarter in 2019. Unaudited net income for the nine-month period ended September 30, 2020 was $13.5 million compared to $9.3 million, a 46% increase, over the same period in 2019. Pretax income for the quarter ended September 30, 2020 was $7.5 million, an increase of $3.1 million, 72%, compared to $4.4 million for the quarter ended September 30, 2019. President and CEO David V. Heald commented, "Our achievement of record earnings and a double-digit increase in earnings per share in the third quarter is exceptional. We attribute our ability to consistently outperform peers in our industry to the outstanding focus and hard work of our employees, management team and Board of Directors. This has been a year of unanticipated changes and economic hardships for our community, country and entire nation. Throughout our history, Santa Cruz County Bank has stepped up to support its customers, community and employees in the best and worst of times. During 2020 to date, we successfully finalized our merger and systems integration, adapted our entire workforce and offices to meet COVID-19 safety standards and work from home scenarios, and most recently, maintained all business operations during unexpected employee evacuations due to wildfires. I'm extremely proud of the dedication of our entire team through these hardships and our ability to adapt to change without disruption to workflows, while providing exceptional customer service. We've proven time and again our ability to adapt to change and navigate strong economic headwinds with success." Selected financial information is presented in the following table:
09.30.20
Third quarter return on average assets and equity of 1.50% and 13.04%, respectively
Well capitalized with a total risk based capital ratio of 16.61%
Good credit quality with no loans 30 to 90 days past due
139% growth in loans, $700.3 million increase over the third quarter of 2019
87% growth in deposits, $548.3 million increase over the third quarter of 2019
Basic earnings per share increased to $1.39 from $1.24 in the third quarter of 2019
Book value per share after dividends increased by $11.14 or 35%, to $42.83 compared to the third quarter of 2019
Assets
Total assets grew by $54.2 million to $1.44 billion in the third quarter and by $716.2 million over the last twelve months. Growth from June 30, 2020 to September 30, 2020 was organic and similar to our historic third quarter pattern. Year over year growth arose primarily from deposits acquired in the merger with Lighthouse Bank combined with deposits derived from the team's effort to process SBA Paycheck Protection Program "PPP" loans that went to the maximum capacity of our resources. With over 50% of PPP loans funded to non-customers, the Bank developed new business relationships in the tri-county market area and continues to capitalize on opportunities afforded by the PPP program. Loans & Asset Quality
For the third quarter, gross loans increased by $83.6 million, and year over year increased $700.3 million, 139% to $1.2 billion. Loans made under the Payroll Protection Program accounted for a significant portion of the loan growth over the last twelve months combined with loans from the Lighthouse merger. The material growth noted in quarter three 2020, was organic, largely due to the effort of the Bank's lending team. Loans Past Due 30-89 Days
0
(12,438)
Due to core portfolio growth, $360 thousand was provided for loan and lease losses during the current reporting quarter and $760 thousand for the nine-months of 2020. An additional $1.9 million, not included in the ALLL, is held in reserve for potential contingencies that could arise from the origination of PPP loans. Allowance for loan losses of $11 million at September 30, 2020 represents an 8.1% increase over the same period in 2019. The ratio of loan loss reserves to loans not held for sale or guaranteed by the SBA was 1.37%. The Bank continues to experience good credit quality within its loan portfolio with no past due loans and one loan on non-accrual with limited loss potential. By proactively working with our clients throughout the pandemic, the Bank has received and processed COVID-related payment deferral requests representing approximately 8% of the non-SBA portfolio, with 84% of deferrals secured by conforming real estate. The Bank continues to work closely with its customers to ensure their success. The Bank's SBA 7(a) portfolio continues to benefit from the CARES ACT legislation that makes 6 months of payments on behalf of the borrower. The Bank's exposure to the hospitality industry remains well managed as follows: exposure to hotels/motels at $66 million, a modest 47% of capital, and exposure to restaurants at $27 million or 19% of capital. Both categories continue to perform well with over 50% of borrowers who have not requested any COVID related accommodations. Deposits
The Bank's total deposits, at a record $1.2 billion, increased by 3% or $32.1 million since June 30, 2020 and by 87% since September 30, 2019. Year over year, non-interest bearing deposits grew by 97%. Deposit growth between the second and third quarter in 2020 was primarily organic due to seasonal patterns. Year over year growth was enhanced by the PPP related deposits and deposits acquired in the Lighthouse merger. Santa Cruz County Bank ranked 4th in overall deposit market share in Santa Cruz County, 1st in Santa Cruz and 2nd in Watsonville based upon FDIC data as of June 30, 2020. Deposit and Borrowing composition at September 30, 2020:                                              
Deposits:
83,486,762
Impact of and Response to the COVID-19 Pandemic
In response to the COVID-19 pandemic, the Bank focused first on the well-being of its employees, customers and communities. Masks and social distancing are required for customers and employees in all banking offices. Additional preventive health measures were put in place including elimination of business-related travel requirements, mandatory work from home for all employees able to do so, social distancing precautions for all employees in the office and customers visiting branches, and preventive cleaning at offices and branches including the implementation of protective barriers. Customer-facing employees were also provided additional pay for their essential service. The Bank also focused on business continuity measures including monitoring potential business interruptions, making improvements to our remote working technology, and conducting regular discussions with our technology vendors to ensure full functionality throughout this event. The Bank took measures to support customers affected by the pandemic and maintain strong asset quality, including:
Helping business clients through the Paycheck Protection Program ("PPP") and other loan products; following its launch in April, the Bank originated $371 million in PPP loans. Offering flexible repayment options to current clients and a streamlined loan modification process, when appropriate
Implementing a broad-based risk management strategy to manage credit segments on a real-time basis
Monitoring portfolio risk and related mitigation strategies by segments
Proactively contacting clients in order to assess credit situations and needs and develop long-term financial contingency plans
The Bank is currently taking advantage of participation in the Federal Reserve Bank Liquidity Facility although only utilizing about 15% of the available capacity to date. Non-Interest Income / Expense 
For the third quarter of 2020, non-interest income was $1.3 million, which included $431 thousand in gains on SBA loans sold. Gains are taken strategically and represent the primary variant within non-interest income comparisons to the second quarter 2020 and third quarter 2019. In addition, the recession in the second quarter of 2020 resulting from the COVID-19 pandemic negatively impacted non-interest income, which continued to decline in the third quarter. Non-interest expense for the three-month period ended September 30, 2020, increased 5% or $279 thousand compared to prior quarter and increased 45% or $1.9 million compared to the same period last year. Third quarter non-interest expense includes the combination of both banks (resulting from the merger with Lighthouse Bank), hence the increase, compared to the third quarter of 2019, which represents non-interest expense of Santa Cruz County Bank only. Comparing the second quarter to the third quarter of 2020, the increase in non-interest expense was spread through various categories, with no material amount within a specific area. Net Interest Margin
Net interest income is the major earnings component of the Bank. Net interest income of $12.9 million for the quarter ended September 30, 2020 exceeded prior quarter by 18% or $1.9 million and improved over the 2019 third quarter by 55% or $4.6 million. The year over year increase is due primarily to the larger volume of the combined earning assets of both banks resulting from the merger. The variance from the second quarter of 2020 is the combination of a reduction in market rates which negatively impacted earnings, offset by income generated from PPP loan origination. Net interest margin at 3.80% declined 96 basis points from prior year but improved 11 basis points from the second quarter of 2020. The year over year reduction in net interest margin is due primarily to the Bank's asset sensitivity, which means earnings will follow in the same direction as rates. The improvement between the second and third quarter of 2020 is due to the origination of a material amount of PPP loans and associated fees, plus interest. Shareholders' Equity
Total shareholders' equity was $164.9 million at September 30, 2020, an $87.1 million and 112% increase over September 30, 2019. The majority of the increase was due to the issuance of common stock related to the merger and the value added to our shareholders due to continued strong earnings. Approximately $28.8 million of intangible value arising from the merger is included in the $87.1 million increase. This increase was reduced by the payout of quarterly cash dividends. Common stock cash dividends totaled $866 thousand in 2020 and $289 thousand or $0.075 per share for the quarters ended September 30, 2020 and June 30, 2020, respectively. Historically, the Bank has paid thirty consecutive cash dividends and issued one 10% stock dividend to shareholders. For the three-month period ended September 30, 2020 the Bank's return on average equity was 13.04% and return on average assets was 1.50%. The book value per share of Santa Cruz County Bank's common stock at September 30, 2020 was $42.83, up $11.14 from the same period in 2019. ABOUT SANTA CRUZ COUNTY BANK 
Santa Cruz County Bank was founded in 2004. It is a top-rated, locally-owned and operated, full-service community bank headquartered in Santa Cruz, California. The bank has seven branches–Aptos, Capitola, Cupertino, Santa Cruz (2), Scotts Valley and Watsonville – all of which are Green Business Certified in accordance with the Bank's commitment to the environment. Santa Cruz County Bank is distinguished from "big banks" by its relationship-based service, problem-solving focus, and direct access to decision makers. The bank is a leading SBA lender in Santa Cruz County and Silicon Valley, and a top USDA lender in the state of California. As a full-service bank, Santa Cruz County Bank offers competitive deposit and lending solutions for businesses and individuals; including business loans, lines of credit, commercial real estate financing, construction lending, agricultural loans, SBA and USDA government guaranteed loans, credit cards, merchant services, remote deposit capture, mobile and online banking, bill payment, and treasury management. True to its community roots, Santa Cruz County Bank has supported regional well-being by actively participating in and donating to local not-for-profit organizations. Santa Cruz County Bank stock is publicly traded on the OTC marketplace under the symbol SCZC. Stock purchase orders may be placed online, through a brokerage firm, or through Market Makers listed in the Investor Relations section of the bank's website. For more information about Santa Cruz County Bank, visit  www.sccountybank.com . NATIONAL, STATE, AND LOCAL RATINGS AND AWARDS 
S&P Global Top 100 Community Banks: ranked 4th in the nation out of more than 4,200 banks with assets under $3 billion based upon 2019 performance. The Bank has ranked in the Top 100 Community Banks by S&P Global for four consecutive years. Financial Management Consulting (FMC) Group: The Bank has ranked in FMC's top ten banks in California for the past five years. The Findley Reports, Inc.: The Bank has received the top ranking of Super Premier by Findley for ten consecutive years. Bauer Financial Reports, Inc.: rated 5-star "Superior" based upon its financial performance. The Bank ranks 4th in the Silicon Valley for the number of SBA loans lent to Silicon Valley businesses for the SBA's 2019 fiscal year. COMMUNITY AWARDS AND RECOGNITION
Santa Cruz Chamber of Commerce, 2018 Business of the Year Award. Farm Bureau of Santa Cruz County, 2018 Al Smith Friend of Agriculture Award for support of the agricultural industry and providing access to capital. Second Harvest Food Bank, Platinum Level Award for the 2019 Holiday Food & Fund Drive. Santa Cruz Sentinel, 2020 Reader's Choice Award, number one bank in Santa Cruz County as voted by Santa Cruz Sentinel readers. Good Times, 2020 Best of Santa Cruz County Award, Voted "Best Bank" for eight consecutive years. Santa Cruz Waves Magazine, 2020 Swellies Awards, Voted "Favorite Bank" in Santa Cruz County. This 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 fluctuations 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. Selected Financial Data (unaudited)

Santa Cruz County Bank Reports Record Earnings for the Third Quarter Ended September 30, 2020

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SANTA CRUZ, Calif., Sept. 18, 2019 /PRNewswire/ -- Santa Cruz County Bank (OTC Pink: SCZC) and Lighthouse Bank (OTC Pink: LGHT) jointly announced that the shareholders of both companies have approved the agreement and plan of reorganization and merger (the "Agreement") announced on May 28, 2019, whereby Lighthouse Bank will merge with and into Santa Cruz County Bank. More than 91 percent of shares voted by Lighthouse Bank shareholders were voted in favor of the merger and over 98 percent of shares voted by Santa Cruz County Bank shareholders were voted in favor of the merger. In addition to shareholder approval, Santa Cruz County Bank has received all regulatory approvals for the merger which is expected to close on October 18, 2019. "The collaborative effort by the Directors, Executive Management, Senior Management and employees, of these two nationally recognized banking institutions, has been phenomenal. We will welcome four experienced Directors, John Burroughs, Stephen Pahl, Craig French and James Weisenstein to join our Board of Directors when the merger closes. Together we are excited to continue serving our local community and enhancing shareholder value," said William J. Hansen, Chairman of Santa Cruz County Bank. "We look forward to offering seven full-service banking offices for the convenience of our customers and community. The expansion of our facilities as a result of the merger will provide greater access for our growing customer base, additional space for our employees, and the use of conference rooms for community groups. Since our merger announcement in late May, transition teams at both banks have been working diligently to develop our conversion strategy. We welcome Lighthouse Bank staff members to our family and look forward to bringing our two banks together to serve our communities as one premier banking institution," stated David V. Heald, President and CEO of Santa Cruz County Bank. When the merger transaction is completed, Santa Cruz County Bank's total assets will increase to nearly $1 billion on a pro forma basis. Both Lighthouse Bank branches, one in Santa Cruz and one in Cupertino, will remain as full service branches after the merger is completed, and customers of both banks will have access to a total of seven branches, six in Santa Cruz County and one in Cupertino. About Santa Cruz County Bank
Santa Cruz County Bank, founded in 2004, is a top rated, locally owned and operated full-service community bank headquartered in Santa Cruz, California. The bank operates five branches located in Aptos, Capitola, Santa Cruz, Scotts Valley and Watsonville. The bank offers a variety of competitive deposit and lending solutions for businesses and individuals; including business loans, lines of credit, commercial real estate financing, agricultural loans, SBA and USDA government guaranteed loans, credit cards, merchant services, remote deposit capture, mobile and online banking, bill payment, and cash management. The bank's SBA Department has been recognized as a top SBA lender in Santa Cruz County and in the Silicon Valley. Santa Cruz County Bank is a top USDA lender in the state of California. Santa Cruz County Bank stock is publicly traded on the OTC marketplace under the stock symbol SCZC. Stock purchase orders may be placed through a brokerage firm or one of the Market Makers listed in the Investor Relations section of Santa Cruz County Bank's website. For more information about Santa Cruz County Bank, visit www.sccountybank.com . About Lighthouse Bank
Lighthouse Bank, founded in 2007, is a highly rated locally owned and operated full-service community bank with offices in Santa Cruz and Cupertino. The Bank's dedication to providing personalized relationship-based service and easy access to decision makers give its customers a refreshing alternative to "big banking". Lighthouse Bank further supports this commitment by offering unique services such as worldwide surcharge free ATM/Debit Cards, remote deposit capture, and complimentary business courier service throughout Santa Cruz County. Lighthouse is also focused on supporting the community and actively participates and donates to local non-profits, including a match of employees' donations to non-profits of their choice. Lighthouse offers a variety of competitive deposit and lending solutions for businesses and individuals; including loans, lines of credit, construction and commercial real estate financing, SBA government guaranteed loans, credit cards, merchant services, mobile banking, remote deposit capture, and online banking bill payment and cash management. Lighthouse Bank stock is actively traded under the symbol LGHT. For more information about Lighthouse Bank, visit www.lighthousebank.com . Forward-Looking Statements
This press release contains certain forward-looking information about Santa Cruz County Bank ("Santa Cruz"), Lighthouse Bank ("Lighthouse"), and the combined company after the close of the merger and is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Such statements involve inherent risks, uncertainties, and contingencies, many of which are difficult to predict and are generally beyond the control of Santa Cruz, Lighthouse and the combined company. Santa Cruz and Lighthouse caution readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. Risks and uncertainties for each institution and the combined institution include, but are not limited to the ability of the parties to complete the merger; government approval may not be obtained or adverse regulatory conditions may be imposed in connection with governmental approvals of the merger; approval by the shareholders of Santa Cruz and Lighthouse may not be obtained; the successful integration of Lighthouse, or achieving expected beneficial synergies and/or operating efficiencies, in each case might not be obtained within expected time-frames or at all; and the possibility that personnel changes/retention will not proceed as planned. All forward-looking statements included in this press release are based on information available at the time of the communication. Pro forma, projected and estimated numbers are used for illustrative purposes only and are not forecasts, and actual results may differ materially. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise except as required by law. SOURCE Santa Cruz County Bank
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Santa Cruz County Bank and Lighthouse Bank Shareholders Approve Merger Agreement

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SANTA CRUZ, Calif., July 26, 2019 /PRNewswire/ -- Lighthouse Bank (OTC-QB: LGHT ), a top-rated bank with offices in Santa Cruz and Silicon Valley, today announced that its Board of Directors has declared a quarterly cash dividend in the amount of $0.10 per share. The dividend is payable on August 23, 2019 to shareholders of record at the close of business on August 9, 2019. The cash dividend is the result of the Bank's strong ongoing financial performance and significant capital strength. In May, the Bank paid its fourth $0.10 per share quarterly cash dividend payment to shareholders, which followed four consecutive quarterly cash dividends of $0.09, $0.08, and $0.075 per share. In addition to regular quarterly cash dividends, the Bank previously declared special cash and stock dividends. Since January 2015, the Bank has paid $4.3 million in cash dividends to shareholders. The Bank recently reported Q2 2019 earnings. Net income for the quarter was $1.17 million, compared to $1.24 million in the second quarter a year ago. Excluding $292 thousand of merger related expenses, net income for the quarter was $1.46 million, an increase of 18% compared to the year ago quarter. Year-to-date net income was $2.50 million. Excluding merger related expenses, year-to-date net income was $2.79 million, an increase of 23% over $2.28 million a year ago. On May 28, 2019, Lighthouse Bank and Santa Cruz County Bank (OTC Pink: SCZC) announced an agreement and plan of reorganization and merger. Information regarding the announcement is available on the Lighthouse Bank website. ABOUT LIGHTHOUSE BANK:
Lighthouse Bank, founded in 2007, is a highly-rated locally owned and operated community bank. Lighthouse Bank operates two full-service banking offices located in Santa Cruz and Silicon Valley. The Bank offers a variety of competitive deposit and lending solutions for businesses and individuals; including loans, lines of credit, construction and commercial real estate financing, SBA government guaranteed loans, credit cards, merchant services, mobile banking, remote deposit capture, and online banking bill payment and cash management. Lighthouse Bank's "Modern Banking, Traditional Service" mantra extends into every aspect of their customer experience. The Bank's dedication to providing personalized relationship-based service and easy access to decision makers give its customers a refreshing alternative to "big banking". The Bank further supports this commitment by providing unique services such as worldwide surcharge free ATM/Debit Cards, remote deposit capture, and complimentary business courier service throughout Santa Cruz County. Lighthouse Bank has earned a number of top industry rankings based on a variety of categories including asset quality, capital adequacy, return on average assets, return on average equity, and operational efficiency. Lighthouse Bank stock is actively traded under the symbol LGHT . More information on the Bank's stock and historical financial performance may be located on the Bank's website at www.lighthousebank.com 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. SOURCE Lighthouse Bank

Lighthouse Bank Declares Quarterly Cash Dividend Payment to Shareholders

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SANTA CRUZ, Calif., July 26, 2019 /PRNewswire/ -- Lighthouse Bank (OTC-QB: LGHT), a top-rated bank with offices in Santa Cruz and Silicon Valley, today announced that its Board of Directors has declared a quarterly cash dividend in the amount of $0.10 per share. The dividend is payable on August 23, 2019 to shareholders of record at the close of business on August 9, 2019. The cash dividend is the result of the Bank's strong ongoing financial performance and significant capital strength. In May, the Bank paid its fourth $0.10 per share quarterly cash dividend payment to shareholders, which followed four consecutive quarterly cash dividends of $0.09, $0.08, and $0.075 per share. In addition to regular quarterly cash dividends, the Bank previously declared special cash and stock dividends. Since January 2015, the Bank has paid $4.3 million in cash dividends to shareholders. The Bank recently reported Q2 2019 earnings. Net income for the quarter was $1.17 million, compared to $1.24 million in the second quarter a year ago. Excluding $292 thousand of merger related expenses, net income for the quarter was $1.46 million, an increase of 18% compared to the year ago quarter. Year-to-date net income was $2.50 million. Excluding merger related expenses, year-to-date net income was $2.79 million, an increase of 23% over $2.28 million a year ago. On May 28, 2019, Lighthouse Bank and Santa Cruz County Bank (OTC Pink: SCZC) announced an agreement and plan of reorganization and merger. Information regarding the announcement is available on the Lighthouse Bank website. ABOUT LIGHTHOUSE BANK:
Lighthouse Bank, founded in 2007, is a highly-rated locally owned and operated community bank. Lighthouse Bank operates two full-service banking offices located in Santa Cruz and Silicon Valley. The Bank offers a variety of competitive deposit and lending solutions for businesses and individuals; including loans, lines of credit, construction and commercial real estate financing, SBA government guaranteed loans, credit cards, merchant services, mobile banking, remote deposit capture, and online banking bill payment and cash management. Lighthouse Bank's "Modern Banking, Traditional Service" mantra extends into every aspect of their customer experience. The Bank's dedication to providing personalized relationship-based service and easy access to decision makers give its customers a refreshing alternative to "big banking". The Bank further supports this commitment by providing unique services such as worldwide surcharge free ATM/Debit Cards, remote deposit capture, and complimentary business courier service throughout Santa Cruz County. Lighthouse Bank has earned a number of top industry rankings based on a variety of categories including asset quality, capital adequacy, return on average assets, return on average equity, and operational efficiency. Lighthouse Bank stock is actively traded under the symbol LGHT . More information on the Bank's stock and historical financial performance may be located on the Bank's website at www.lighthousebank.com 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. SOURCE  Lighthouse Bank

Lighthouse Bank : Declares Quarterly Cash Dividend Payment to Shareholders

Merger

Lighthouse Bank is a locally owned and operated full-service commercial bank with offices in Santa Cruz and Silicon Valley. The Bank offers a full array of banking products and services to businesses, professionals, individuals, developers and commercial property owners.

Date	5/29/2019
Round	Merger
Amount
Investors	Santa Cruz County Bank
Valuation	$99M
Revenue	0 FY undefined
Sources	3

First funding	5/29/2019
Last Funding	5/29/2019
Investor	Santa Cruz County Bank
Rounds	1 Merger
Board Seats
Type	Bank
Location	California

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