LIGHTHOUS 
By SANTA CRUZ, Calif., Jan. 25 /PRNewswire-FirstCall/ -- Lighthouse Bank (OTC Bulletin Board: LGHT) posted its 2nd successive quarterly profit for the 4th quarter ended 12-31-09. Profit for the 4th quarter was $38,538. Adjusting for non-cash charges related to stock option accounting, profit for the quarter was $127,092 and $158,674 for the fiscal year ended 12-31-09. Shareholders' equity increased by $208,482 during 2009.
Lighthouse Bank has continued to grow consistently since opening in October 2007. In spite of the challenging economic environment, the Bank operated profitably during the 2nd half of 2009 in only its 2nd full year of operation. More importantly, shareholders' equity increased beginning early in 2009 and climbed from $16,175,258 to $16,384,010 at year end.
Lighthouse Bank has maintained a capital level well in excess of regulatory requirements since inception, with this level being more than adequate to support future growth. The Bank has steadily increased its reserve for loan losses, which at 12-31-09 stood at $1,384,000 or 2.51% of gross loans. This percentage of reserve exceeds industry standards, although the Bank has not experienced a loan loss since opening.
Selected Financial Data (unaudited)
Quarter-Ended Change
------------- ------
12/31/2009 9/30/2009 $ %
---------- --------- --- ---
Balance Sheet
Total assets $91,154,618 $84,598,070 $6,556,548 8%
Gross loans 55,137,090 54,256,479 880,611 2%
Allowance for loan losses 1,384,000 1,275,000 109,000 9%
Non interest-bearing
deposits 12,454,194 10,908,792 1,545,402 14%
Total deposits 70,473,764 63,986,902 6,486,862 10%
Shareholders' equity 16,384,010 16,275,694 108,316 1%
Income Statement
Interest income 1,147,139 1,292,158 (145,019) -11%
Interest expense 202,655 197,247 5,408 3%
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Net interest income 944,484 1,094,911 (150,427) -14%
Provision for loan losses 109,000 199,000 (90,000) -45%
Non-interest income 40,757 42,564 (1,807) -4%
Non-interest expense 837,703 885,049 (47,346) -5%
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Net profit (loss) $38,538 $53,426 $(14,888) 28%
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Net profit (loss)
excluding loan loss
provisions $147,538 $252,426 $(104,888) 42%
Ratios
Net interest margin 4.56% 5.63%
Equity capital-to-total
assets 18.0% 19.2%
Year-Ended Change
---------- ------
12/31/2009 12/31/2008 $ %
---------- ---------- --- ---
Balance Sheet
Total assets $91,154,618 $64,955,652 $26,198,966 40%
Gross loans 55,137,090 42,239,935 12,897,155 31%
Allowance for loan losses 1,384,000 971,000 413,000 43%
Non interest-bearing
deposits 12,454,194 10,049,217 2,404,977 24%
Total deposits 70,473,764 48,645,722 21,828,042 45%
Shareholders' equity 16,384,010 16,175,528 208,482 1%
Income Statement
Interest income 4,324,523 $2,762,127 1,562,396 57%
Interest expense 768,035 630,879 137,156 22%
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Net interest income 3,556,488 2,131,248 1,425,240 67%
Provision for loan losses 413,000 891,000 (478,000) -54%
Non-interest income 135,304 58,921 76,383 130%
Non-interest expense 3,475,375 3,309,593 165,782 5%
--------- --------- -------
Net profit (loss) $(196,583) $(2,010,424) $1,813,841 90%
========= =========== ==========
Net profit (loss)
excluding loan loss
provisions $216,417 $(1,119,424) $1,335,841 119%
Ratios
Net interest margin
Equity capital-to-total
assets
Lighthouse Bank remains focused on its commitment to operate an open, ethical, and financially successful company. All decisions are intended to contribute to the long-term success of our owners, clients, employees, and community. The Bank has moved into profitable operations without accepting government assistance of any kind, while shouldering the burden of increased FDIC insurance premiums brought about by failures within the banking industry as a whole.
As an organization Lighthouse Bank opposed the 2008-2009 banking bailout (TARP Program) that channeled huge amounts of money to virtually every major financial institution in the country at taxpayer expense. The Bank also opposes numerous industry excesses that continue to this day. Lighthouse Bank operates in a reasonable, rational, and straight forward manner. The Bank provides no lavish compensation packages, owns no vacation properties or country club memberships and furnishes no such perks or benefits to its Board, Management, or Staff. The Bank invests locally and does not engage or participate in any of the exotic financial products that led to the turmoil now present in our economy.
It is the focus, commitment, and intention of Lighthouse Bank that our owners, clients, and community will prosper together.
ABOUT LIGHTHOUSE BANK:
Lighthouse Bank is locally owned and operated in Santa Cruz County. The Bank offers a full array of banking products and services to businesses, professionals, individuals, developers, and commercial property owners. Lighthouse Bank's common stock is listed on the Over-the-Counter (OTC) Bulletin Board under the stock symbol LGHT.OB. The Bank is located at 111 Mission Street in Downtown Santa Cruz, Ca. More Information on the Bank may be obtained through its website: www.lighthousebank.net or by calling 831-600-4000.
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 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
