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Santa Cruz County Bank posts record 6.5 million profit for 2016

January 26, 2017

Santa Cruz County Bank posted a record $6.5 million profit for the year, up 19 percent, bolstered by a record $1.84 million profit for the quarter ending Dec. 31, up 26 percent from a year ago.

“Another outstanding year of earnings,” said David Heald, president and CEO of the 13-year-old bank, noting double-digit percentage growth in assets, deposits and loans and the 2016 ranking as the best in the state for financial performance.

He said his staff and the board of directors “are to be commended for our success.”

The bank employs 85 people.

Assets grew to a record $588.2 million and deposits reached a record $529.3 million.

“We are seeing new business from Wells Fargo customers switching over,” said Mary Anne Carson, senior vice president at Santa Cruz County Bank.

Last year Wells Fargo had the biggest market share in Santa Cruz County, 24 percent of deposits, and was fined $100 million by federal regulators over employees opening unauthorized accounts to hit sales targets and get bonuses.

Loans at Santa Cruz County Bank grew to $415 million, up 16 percent from the year before. Among those loans:

• A $1.8 million loan to Anatometal, a locally owned jewelry manufacturer, to purchase a building in the Harvey West area to consolidate and expand operations and a $350,000 line of credit.

• Financing of $2.8 million to build Ocean Commons Center, a development under construction near the Holiday Inn, expected to create 100 local jobs with Habit Burger and Dunkin Donuts as tenants. The owners are looking for locally owned businesses to occupy the remaining 2,100-square-foot space.

• Financing for Santa Cruz Moving, a locally owned company to buy another vehicle to expand its business.

Santa Cruz County Bank has made South County an area of emphasis, lending to growers and businesses that support the agricultural sector.

“There was an uptick in financing requests for equipment loans including trucks and commercial vehicles, solar projects, business purchases and business real estate purchases, which are good signs that businesses are looking to expand and feeling confident,” said Carson.

As the fourth quarter began, Barbara Perkins joined Santa Cruz County Bank as vice president of Small Business Administration Lending, working out of the bank’s loan office in Fresno. A Fresno State ag science alum, she has 19 years of experience in government guaranteed loans and came from Pacific Premier Bank and before that First Community Bank.

In fiscal 2016, Santa Cruz County Bank ranked 12th in dollar volume for SBA loan approvals in the Fresno District.

The bank will host a customer appreciation celebration week Monday to Feb. 3 at all five branch locations — Santa Cruz, Scotts Valley, Aptos, Capitola and Watsonville — to mark 13 years in business.

Santa Cruz County Bank statistics

Year-to-year comparisons:

Shareholders’ equity: $51M, up 15 percent.

Quarter earnings: 84 cents per share vs. 64 cents per share a year ago.

Book value/share: $23.15 vs. $20.37 a year ago.

 

Assets: $588.2M, up 15 percent.

Net interest margin: 4.05 percent.

Return on average equity: 13.58 percent.

Allowance for loan losses to total loans: 2.14 percent.

Nonperforming assets: No loans on accrual.

Efficiency ratio: 55.09 percent.

Bauer Financial rating: Five-star superior.

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