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Bank of Santa Clarita

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Bank of Santa Clarita Reports Second Quarter Results

SANTA CLARITA, CA / ACCESSWIRE / July 20, 2021 / Bank of Santa Clarita (OTC PINK:BSCA) today reported financial results for the second quarter and six months ended June 30, 2021.

Net income for the three months ended June 30, 2021 was $742,000 compared with $805,000 for the same quarter in 2020. Net income for the first half of 2021 was $1,806,000 compared with $1,490,000 for the six months ended June 30, 2020.

Frank Di Tomaso, Chairman and Chief Executive Officer commented: "As previously announced on April 27, 2021, the Bank entered into a merger agreement with Bank of Southern California with an expected closing date of late third quarter or early fourth quarter 2021. Management of both banks continue to work towards securing regulators' and shareholders' approvals for the merger".

Income Statement

For the three months ended June 30, 2021, total interest and dividend income was $3.2 million compared with $2.8 million in the second quarter of 2020. Interest and dividend income for the first half of 2021 was $6.2 million compared with $5.6 million reported for the first half of 2020.

Interest expense for the 2021 second quarter decreased to $0.3 million from $0.5 million in the second quarter of 2020. Interest expense for the first half of 2021 decreased to $0.7 million from $1.1 million reported for the corresponding period last year.

Net interest income for the 2021 second quarter improved to $2.8 million from $2.4 million for the second quarter of 2020. Net interest income for the first half of 2021 was $5.5 million compared with $4.6 million for the six months ended June 30, 2020.

Net interest margin was 3.28% for the 2021 second quarter, versus 3.18% in the 2020 second quarter. Net interest margin was 3.18% for the first half of 2021, compared with 3.05% for the same period in 2020.

The Bank did not record a provision for loan losses in the second quarter of 2021 and 2020. For the six months ended June 30, 2021, the Bank recorded a provision reversal of $47,000 compared with a provision for losses of $120,000 for the first half of 2020.

Non-interest income was $154,000 for the 2021 second quarter compared with $138,000 for the same quarter in 2020. In the first half of 2021, non-interest income was $368,000, compared with $326,000 for the six months ended June 30, 2020.

Non-interest expense for the second quarter 2021 was $1,933,000, compared with $1,361,000 for the same period last year. Non-interest expense for the first half of 2021 was $3,370,000, compared with $2,669,000 for the first half of 2020. During the second quarter 2021, the Bank recorded one-time legal charges totaling $413,000 in connection with the pending merger agreement with Bank of Southern California. Excluding the one-time charges, the Bank's non-interest expenses for the three and six months ended June 30, 2021 would have been $1,520,000 and $2,957,000, respectively.

The Bank's efficiency ratio continues to be among the best in the industry. For the six months ended June 30, 2021, the Bank's efficiency ratio was 57.34% compared with 54.6% for the same period last year.

Balance Sheet

At June 30, 2021, net loans decreased to $279.9 million from $284.3 million at December 31, 2020. The Bank's deposits rose to $333.2 million at the end of the 2021 second quarter from $283.0 million at December 31, 2020. Non-interest-bearing deposits increased to 41.8% of total deposits at June 30, 2021, versus 39.3% at December 31, 2020. Total assets increased to $416.1 million at the close of the 2021 second quarter from $373.0 million at December 31, 2020.

At June 30, 2021, The Bank remained "well-capitalized" under all regulatory categories, with a total risk-based capital ratio of 15.98%, a tier 1 risk-based capital ratio of 15.06%, a common equity tier 1 capital ratio of 15.06%, and a tier 1 leverage ratio of 10.02%. The minimum ratios for capital adequacy for a well-capitalized bank are 10.00%, 8.00%, 6.50% and 5.00%, respectively.

Bank of Santa Clarita is the only full-service commercial bank headquartered in the Santa Clarita Valley, and is focused on meeting the banking needs of the community and its businesses and non-profits. We are proud of the fact that Bank of Santa Clarita has served the Santa Clarita Valley's residents, including individuals, small businesses and non-profit organizations since 2004, and we truly appreciate the relationships we've made with many of our neighbors, and invite any of those in the community who do not yet know us well to visit us, and together we can continue to build an even more vibrant and healthy community. The Bank provides experienced decision-making and the personalized service that growing businesses and other organizations need on a daily basis. Bank clients have direct access to executive management and experienced professional staff members to address their credit requirements, from commercial lines of credit to SBA loans to commercial real estate and other commercial loans, and also technology-based banking services that include online bill-paying, remote capture depositing, check imaging and initiating online wire transfers, among other cash management facilities.

Contact:

Philippe Masbanji
Executive Vice President
Chief Financial Officer
(661) 362-6000

Bank of Santa Clarita
Corporate Headquarters
23780 Magic Mountain Parkway
Santa Clarita, California 91355

www.bankofsantaclarita.com

FORWARD LOOKING STATEMENTS

Certain matters discussed in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to the Bank's current expectations regarding deposit and loan growth, operating results and the strength of the local economy. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to: the impact of changes in interest rates, a decline in economic conditions and increased competition among financial service providers as these factors may impact the Bank's operating results, its ability to attract deposit and loan customers, the quality of the Bank's earning assets and government regulation. The Bank does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.

BANK OF SANTA CLARITA
Statements of Income (Unaudited)
(in thousands)

Three Months Ended June 30 Six Months Ended June 30
2021 2020 2021 2020
Interest Income




Loans
$3,045 $2,753 $5,892 $5,375
Interest Bearing Deposits at Other Financial Institutions
30 65 84 221
Investment Securities
96 28 246 28
Federal Funds Sold
- - - -
Total Interest Income
3,171 2,846 6,222 5,624
Interest Expense
Demand
22 11 43 27
Money Market and Savings
81 66 157 204
Time Deposits
102 227 234 469
Borrowings
139 191 279 365
Total Interest Expense
344 495 713 1,065
Net Interest Income
2,827 2,351 5,509 4,559
Provision for Loan Losses
- 0 (47) 120
Net Interest Income after Provision for Loan Losses
2,827 2,351 5,556 4,439
Noninterest Income
154 138 368 326
Noninterest Expense
1,933 1,361 3,370 2,669
Net Earnings Before Income Taxes
1,048 1,128 2,554 2,096
Income Tax Expense
306 323 748 606
Net Earnings
$742 $805 $1,806 $1,490


BANK OF SANTA CLARITA
Balance Sheets (Unaudited)
(in thousands)



Jun. 30, 2021 Dec. 31, 2020
Assets




Cash and Due From Banks
$ 63,362 $ 6,720
Interest Bearing Deposits at Other Financial Institutions
29,800 41,150
Federal Funds Sold
- -
Investment Securities
15,349 13,104
Loans, Net
279,852 284,298
Other Assets
27,726 27,708
Total Assets
$ 416,089 $ 372,980
Liabilities and Stockholders' Equity
Deposits
Interest-Bearing
Money Market, Savings and Demand
$ 118,086 $ 93,584
Time
75,943 78,231
Total Interest-Bearing
194,029 171,815
Noninterest-Bearing
139,128 111,152
Total Deposits
333,157 282,967
Borrowings
34,000 43,000
Other Liabilities
6,075 6,239
Total Liabilities
373,232 332,206
Stockholders' Equity
42,857 40,774
Total Liabilities & Stockholders' Equity
$ 416,089 $ 372,980


SOURCE: Bank of Santa Clarita



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