Santa Cruz County Bank 2012 profit up 17 percentJanuary 22, 2013
By Jondi Gumz - Santa Cruz Sentinel
Santa Cruz County Bank posted a profit of $2.8 million for 2012, up 17 percent from the year before.
The locally owned bank, which will mark nine years in February, reported earnings of $1.47 per share for the year, up from $1.27 a year ago, and paid more in taxes, $1.7 million, up from $1.5 million a year ago.
The profit for the quarter was $849,000, up 8 percent from the prior quarter and up 26 percent from a year ago.
At year's end, loans totaled $225.7 million, growing $19 million from the prior quarter, up 9 percent, and up 18 percent from a year ago. The growth reflects loans paid off.
For the quarter, loan production was $36 million, with $33 million in outstanding balances, according to David Heald, president and chief executive officer.
He said there were $7.1 million in loan payoffs and $6 million in paydowns during the quarter. Payoffs included Canyon View Capital of Santa Cruz, which had taken out a $3.15 million bridge loan to buy a 152-unit rental complex in Springfield, Mo.
Heald noted the bank extended 204 new notes totaling $100 million during the year, up from 182 notes for $71 million the year before, and added 24 new relationships of $1 million or more.
Deposits grew to $322 million, up 12 percent for the year and up 1 percent for the quarter.
Assets grew to $356 million, up 11 percent for the year and up 1 percent for the quarter.
Non-interest income rose 16 percent during the quarter to $975,000 on gains from sales of loans, according to Heald.
"We were able to increase the loan-to-deposit ratio to 70 percent," he said, adding, "Our goal is 75 percent."
The loan loss provision is at $200,000, down 33 percent from the prior quarter.
"Credit quality has definitely improved," Heald said, noting net chargeoffs for the year totaled .13 of beginning loans compared to .47 for peer group banks.
Allowance for loan losses was $5 million, up 4 percent from the prior quarter and up 17 percent for the year, keeping pace with growth in loans.
"I prefer to reserve when times are good so when the economy has a downturn, we're prepared," Heald said.
Loan loss reserves were at 2.24 percent of gross loans.
Shareholders' equity grew to $29.8 million, up 2 percent during the quarter and up 13 percent from a year ago.
Bauer Financial rated the bank four stars, signifying "excellent," throughout the year.