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Earnings up for local bank

Bank of Santa Clarita reports a growth rate of more than 10 percent over same period last year endin

Posted: October 25, 2012 2:00 a.m.
Updated: October 25, 2012 2:00 a.m.

The Bank of Santa Clarita released its third quarter results Thursday, and reported net earnings of $203,000 representing a growth rate of more than 10 percent over the $184,000 reported for the same period in 2011.

Net earnings for the nine months in 2012 that ended Sept. 30 grew more than 90 percent over the same period in 2011, the bank reported. Net earnings for the first nine months of this year totaled $305,000, an increase of $147,000 of the total reported, $158,000, for the same nine month period in 2011.

The bank’s net loan portfolio totaled $145 million as of Sept. 30, it reported, recording growth of $9.5 million or 7 percent from the balance as of Dec. 31, 2011.

It also reported a net growth in deposits of $11.4 million or 7.6 percent during the first three quarters of 2012, which included an increase of $8.4 million, or 19.4 percent, in noninterest bearing demand deposits.

Saying the growth was largely the result from the growth in loans and deposits, the bank reported that net interest income increased $221,000, or 4.5 percent, over the amount recorded in the first three quarters of 2011. It also reported the costs of deposits declined .78 percent compared to 1.1 percent from the first three quarters of 2011.

Reporting its total risk-based regulatory capital ratio was 14.32 percent, the bank said it exceeds the “well-capitalized” level of 10 percent which is prescribed in applicable capital regulations.

“We are pleased to announce another excellent quarter for Bank of Santa Clarita, which is the result of the Bank’s conservative approach to managing risk and strong balance sheet growth,” said Frank Di Tomaso, chairman and CEO. “Total assets for the bank now exceed $218 million, as our commercial lending and depository production continued to perform exceptionally well.”

In April, Di Tomaso said the bank plans to expand its commercial and retail lending by opening loan production offices in other geographic areas.

In the press release issued on Wednesday, the bank said that total net earnings for 2012 include non-recurring costs announced earlier in 2012, and that the bank expects to benefit from the resulting lower cost structure in future periods.

The non-recurring costs, as reported in the bank’s second quarter results, came from “lower management-related costs.”

The bank streamlined its operations by shrinking the executive management team through the departure of former executives James Hicken and Kimberly Altobello.

At the time, Di Tomaso said the board felt it was necessary to have fewer tiers of management. The moves, however, prompted concern by local investors.

The bank also terminated its lease on its former headquarters located on Tourney Road, incurring a one-time early lease termination fee of $250,000.

In its latest quarterly report, the bank said it is benefiting from the termination, as total facilities and other fixed asset-related costs declined from $1 million for the first three quarters of 2011 to $646,000 for the same period of 2012.

In April, however, Di Tomaso announced that the bank was also building 15,000 square-foot operations facility in the Valencia Commerce Center with plans to open it in 2013.

At close of trading on Wednesday, bank shares were trading at $7.20, down from a 52-week high of $7.95 per share.




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