Double-digit growth at Santa Cruz County BankFebruary 6, 2008
Santa Cruz Sentinel
February 6, 2008 Double-digit growth at Santa Cruz County Bank JONDI GUMZ Sentinel staff writer A big fourth-quarter boosted loans to $119 million at Santa Cruz County Bank as of Dec. 31, up 44 percent compared to the prior year. Fourth-quarter loans increased $15 million, a 14 percent jump compared to the prior quarter.
Vice president of marketing Mary Anne Carson attributed the increase to $7 million in loans booked by the bank's Small Business Administration lending office in Capitola, which added staff in August. She said the loans included $4 million to a local hospitality business and $2 million to a local business in the medical industry.
The locally owned bank, founded in 2004, recorded double-digit increases in deposits, assets and income for the third straight year. " Deposits grew to $139 million, up 23 percent compared to the year ending Dec. 31, 2006. " Assets grew to $160.2 million, up 21 percent. "
Pre-tax net income grew to $1.7 million, up 16 percent.
" Net interest income grew to $7.98 million, up 20 percent. Carson said 2007 was the year the bank "got fully caught up" on startup expenses, becoming profitable on a cumulative basis during the second quarter.
The bank not only expanded its SBA lending office, but also added a banking office in Capitola in 2007 and in mid-year launched a service allowing customers to make deposits from their business.
David Heald, bank president and chief executive officer, said that service "has been very well received by our business clients."
The bank reported its fourth-quarter results for 2006 have been restated after an accounting review. Carson said an error was made in calculating a tax credit. The restatement reduced the deferred tax asset $130,000, thus reducing net income and shareholders' equity by the same amount.
The bank's annual meeting of shareholders will take place at 3 p.m. May 20 at the Inn at Pasatiempo off Highway 17 in Santa Cruz. Past meetings have taken place at the University Inn & Conference Center in downtown Santa Cruz. Carson said the new location is a bank client and will accommodate at least 100 people.
Some locations will not accept reservations two months in advance, which is when the bank publishes its annual meeting notice. The bank has about 400 shareholders, Carson said. For more information, go to www.sccountybank.com.