Santa Cruz County Bank In The News

By Jondi Gumz - Santa Cruz Sentinel

Santa Cruz County Bank posted a $785,000 profit for the quarter ending Sept. 30, up 24 percent from the prior quarter and up 2 percent from a year ago.

The quarterly jump "was in part due to our election to sell some of our loans," said David Heald, bank president and chief executive officer. "In comparison to quarterly earnings for 2011, we did not have the benefit of gains taken in our securities portfolio."

Loans totaled $206.7 million, growing $3.3 million, up 2 percent from the prior quarter and up 17 percent from a year ago. The growth reflects loans paid off.

The 7-year-old locally owned bank made $25 million in loan commitments during the quarter, with $16 million in outstanding balances.

Privately held Canyon View Capital of Santa Cruz, which acquires and manages commercial real estate for investors, got a $3.15 million bridge loan at 6.5 percent in August to buy Park Place, a 152-unit rental complex in Springfield, Mo., for $4.2 million, according to Canyon View Capital chief Robert Davidson, who expects to close on a permanent Fannie Mae loan at 4.25 percent in 30 to 60 days.

"It's unusual for a local bank to go out-of-state on these types of deals," Davidson said. "It reflects their commitment to truly stand behind local businesses."

Santa Cruz County Bank recovered $52,000 during the quarter and reduced loan loss provisions to $194,000 "due to recoveries of prior loan losses," according to Heald.

Assets totaled $352 million, up 3 percent during the quarter and up 12 percent from a year ago.

Deposits totaled $319 million, up 3 percent during the quarter and up 12 percent from a year ago.

Noninterest-bearing deposits jumped 15 percent. Heald noted a summer build-up of checking account deposits from ag and tourism business customers.

Noninterest expense was up 6 percent from the last quarter because of legal expenses associated with holding and disposal of foreclosed property, Heald said.

Allowance for loan losses was $4.8 million, up 5 percent from the prior quarter. Loan loss reserves were at 2.34 percent of gross loans.

Shareholders' equity grew to $29 million, up 5 percent during the quarter and up 14 percent from a year ago. Earnings were 40 cents per share, same as a year ago, and up from 33 cents from the last quarter.

Bauer Financial rated ?Santa Cruz County Bank four stars, signifying "excellent," for the second quarter.