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Santa Cruz County Bank Reports Record Earnings for the Second Quarter
We are pleased to announce earnings for the quarter and six months ended June 30, 2018 of $2.7 million. This represents the best quarter in the Bank’s history, an increase of 8% compared to the prior quarter (which was the previous record) and an increase of 41% compared to the same quarter in 2017. Basic earnings per share increased $0.24 to $1.12, a 27% increase over the second quarter in 2017.
Pretax income for the quarter ended June 30, 2018 was $3.8 million, an increase of $627 thousand, 20%, compared to $3.2 million for the quarter ended June 30, 2017.
Second Quarter Financial Highlights:
- Net interest margin of 4.69%
- Second quarter return on average assets and equity of 1.73% and 17.79%, respectively
- Well capitalized with a total risk based capital ratio of 13.16%
- Continued exceptional credit quality with no loans on non-accrual
- 10% growth in loans, $41.2 million increase over the second quarter of 2017
- 6% growth in deposits, $31 million increase over the second quarter of 2017
- Basic earnings per share increased to $1.12 from $0.88 over the second quarter of 2017
- Book value per share after dividends increased by $0.82 or 3%, to $25.64 over the second quarter of 2017
President and CEO David V. Heald commented, “We are very pleased to achieve two successive quarters of historical earnings. In correlation with our continued growth, the Bank will end the third quarter in our new headquarters in Santa Cruz. Our new headquarters will afford us higher visibility, with ample parking and an additional ATM for convenience to attract new business while deepening existing relationships. We look forward to serving the community in our new location in September.”
To view the entire Second Quarter 2018 Press Release and for more information on Santa Cruz County Bank’s performance, please visit our Investor Relations page, which includes quarterly and annual financial reports dating back to 2004.
Creedence Shaw Named Chief Credit Officer
Creedence Shaw has been appointed as Senior Vice President and Chief Credit Officer. Mr. Shaw’s appointment coincides with the recent retirement of George Harrison, who served as the Chief Credit Officer for the Bank since June 2015.
Mr. Shaw is one of the Bank’s founding employees. He has 18 years of bank lending experience with an education and professional background in finance, lending, credit administration, loan structuring and credit review. Most recently, Mr. Shaw was Senior Vice President of Credit Administration for the Bank, responsible for loan policy, system integrity, government reporting, audits and reviews, as well as the management of loan concentrations and special assets.
Mr. Shaw obtained a Bachelor of Science degree in Applied Economics from the University of San Francisco. He is based out of the Bank’s Administrative headquarters in Santa Cruz. Mr. Shaw is an active community volunteer who serves on the Audit Committee for Ecology Action for the past three years and currently serves as Board Treasurer for Mountain Bikers of Santa Cruz. He is a member of Santa Cruz Sunrise Rotary, a member of the Santa Cruz County Search and Rescue Team and serves as a Mentor for Santa Cruz Works’ Santa Cruz Accelerates.
David Heald, President and CEO commented, “It is a great pleasure to announce the promotion of Creedence Shaw to the position of Chief Credit Officer. We have worked together for most of his career. Creedence’s experience managing credit portfolios and understanding of credit risk are essential to his position. He brings a well-rounded background to the position through his experience managing credit portfolios and his understanding of credit risk and loan reviews. Creedence has been an asset to the Bank since our inception.”
Santa Cruz County Bank is a 5-Star “Superior” Rated Bank
Santa Cruz County Bank is rated a 5-Star “Superior” bank by Bauer Financial, Inc. based upon its financial performance for the quarter ending March 31, 2018. 5-Star is the highest rating determined by Bauer Financial. Bauer Financial has been reporting on and analyzing the performance of U.S. banks and credit unions since 1983. For more information on Bauer Financial, Inc. visit www.bauerfinancial.com. Santa Cruz County Bank has ranked as a 4-Star “Excellent” and 5-Star “Superior” bank every quarter in the history of our ratings from Bauer Financial.
Bank Announces Increase in Cash Dividend
The Board of Directors of Santa Cruz County Bank is pleased to announce the declaration of an increased quarterly cash dividend in the amount of $0.075 per share, representing a 50% increase over the previous dividend payment. The dividend is payable on July 10, 2018 to shareholders of record as of the close of business on June 29, 2018. This is the 21st quarterly cash dividend declared by the Bank's Board of Directors. In addition to cash dividends, a 10% stock dividend was granted to shareholders in November 2017.
Top 200 Best Performing Banks
We are thrilled to announce for a fifth consecutive year, Santa Cruz County Bank is ranked in American Banker Magazine’s Top 200 Best Performing Community Banks and Thrifts in the United States. Our Bank ranked 22nd out of 633 institutions with less than $2 billion in assets that were included in the nationwide ranking. The ranking, based upon 3-year average return on equity from 2015-2017, also places Santa Cruz County Bank 4th in California out of a total of 26 California banks that made the Top 200 list.
#1 Bank in California
Santa Cruz County Bank is pleased to announce its rank as the top bank in California for its first quarter 2018 financial performance by Financial Management Consulting Group (FMC). In addition, the Bank ranks #1 in asset quality and #1 (lowest) in non-performing assets for the first quarter 2018. The Bank has been ranked in FMC's Top 10 California Banks for three consecutive years. FMC ranks all 159 California banks on a quarterly and annual basis based on a variety of factors including: net interest margin, efficiency, asset quality and earnings.
Super Premier Performing Bank Designation
The Findley Reports, Inc. recently designated Santa Cruz County Bank as a Super Premier Performing Bank for an 8th consecutive year based on 2017 financial performance. For a bank to achieve the Super Premier performance rating it must meet four key performance ratios established by Findley Reports, Inc.. Super Premier is the highest rating level established by Findley Reports, Inc. Santa Cruz County Bank met the four criteria at a high level of performance: growth, return on beginning equity, net operating income as a percentage of average assets and loan losses as a percentage of gross loans. The Findley Reports, Inc. has been recognizing the financial performance of banking institutions in California and the Western United States for over fifty years. Findley Reports named Santa Cruz County Bank as one of 11 “exceptional banks” in California in 2012.
Bank in Top 100 Community Banks Ranking
We are pleased to report Santa Cruz County Bank is ranked 63rd in the country out of at least 3,000 banks under $1 billion in assets, based upon 2017 performance. This is the second consecutive year Santa Cruz County Bank has ranked in the Top 100 Community Banks, by S&P Global.
Santa Cruz County Bank Voted “Best Bank”!
For a sixth consecutive year, Santa Cruz County Bank has been voted “Best Bank” in the Good Times "Best Of Santa Cruz County" annual poll. Thank you to all Good Times readers and customers who cast their vote for us!
Bank receives Al Smith Friend of Agriculture award
Santa Cruz County Bank was recently recognized with the 2018 Al Smith Friend of Agriculture award at the National Agriculture Day Luncheon, presented by the Santa Cruz County Farm Bureau and Agri-Culture. This award is presented annually to an individual, business, or organization that is not directly involved in the production of agriculture, yet supports the industry in other ways. The Bank has played a role in supporting this important business sector in our community through lending, donations to support agricultural education and volunteerism.
Santa Cruz County Bank wins 2017 Reader’s Choice Award
For the fourth consecutive year, Santa Cruz County Bank has been voted “Best Bank” in the Santa Cruz Sentinel “Reader’s Choice Award” annual poll. Thank you to all the Sentinel readers and customers who cast their vote for us!
Bank Announces New Headquarters, Future Relocation
We are excited to announce the signing of a 20-year lease for our future new headquarters at 75 River Street in downtown Santa Cruz. The Bank’s future headquarters will combine its current downtown Santa Cruz branch and Administrative offices into one location. First built in 1966 as a branch of Salinas Valley Savings and Loan, the building at 75 River Street has a long history as a location for financial institutions. The new location is a highly visible gateway to downtown Santa Cruz at the corner of River and Water Streets. The 14,000 plus square foot location will undergo modernization and tenant improvements prior to occupancy, which is anticipated in the fall of 2018.
President and CEO, David Heald stated, “We look forward to providing many new conveniences for our existing clients and those who join us in the future, along with better parking and visibility. We take pride in serving our clients, and this move to a cornerstone building in downtown Santa Cruz symbolizes the value we place in the community we serve.”
Learn more about Mobile Payments
Paying in stores, within apps, and on websites has never been easier, safer, or more private with your Santa Cruz County Bank debit card(s). You already use your phone for just about everything. Now you can pay with it, too because your Santa Cruz County Bank debit card(s) are now compatible with Apple Pay, Android Pay and Samsung Pay. Use your Santa Cruz County Bank debit card that's stored in your mobile wallet for payment at millions of stores around the world, wherever contactless payments are accepted.
Ready to Start? Here's how: Simply load your Santa Cruz County Bank card in your Mobile Wallet on your smartphone or smartwatch for easy and secure purchases!
For more information, view Mobile Wallet FAQ
Our new mobile app lets you control your card usage and spending on the go! CardValet gives you real-time notifications whenever your card is used. If you lose or misplace your card, simply lock your card to disable it and unlock to enable, all with a few taps on your smartphone. CardValet allows you to control spending and safeguard against fraud. All this protection within one simple app - your card, on your terms. For more information on CardValet and how to download the app, click here.
Santa Cruz County Bank Named Industry Top Performer in National Community Bank Rankings
ICBA Independent Banker, published by the Independent Community Bankers of America (ICBA) has recognized the Bank as an ICBA industry top performer in its May issue. Santa Cruz County Bank’s recognition is based on the strength of its competitive banking services and operational efficiencies throughout 2015, which resulted in its rank of 22nd for return on average equity of 13.15%.
“Santa Cruz County Bank is delighted to be recognized as an ICBA top performer,” said David V. Heald, president and CEO. “As a proud member of the Santa Cruz County community, we credit our loyal, local customers and dedicated employees for our success. We look forward to serving the unique needs of our community and helping it grow and prosper in the years to come.”
“Whether serving rural, suburban or large metropolitan areas, community banks operate with a focus on their customers and communities,” said Chris Lorence, ICBA’s executive vice president and chief marketing officer. “Santa Cruz County Bank knows their local market and thrives because they stay true to the principles of community banking while showcasing drive, ingenuity and community commitment. Santa Cruz County Bank demonstrates integrity, enthusiasm and inventiveness in the financial industry, and for that reason ICBA is proud to recognize this community bank and its employees for their outstanding efforts.”
This year’s ICBA top-performers rankings underscore the importance of focusing on serving customers and communities, first and foremost. Delivering superior service, following disciplined pricing models, and supporting their local communities and neighborhoods are trends among those community banks recognized within the rankings. These community banks featured stick to well-known industry fundamentals, while embracing the changing industry landscape.
As part of its annual performance rankings of its member institutions, ICBA pulled year-end FDIC call report earnings data to identify the 25 community banks with the highest return on average assets (ROAA) and return on average equity (ROAE) ratios for all of 2015. Both Subchapter C corporation and Subchapter S corporation institutions in six asset-size categories were recognized.
To see this year’s ICBA top-performers listings, read the article “The Best of the Best” on ICBA Independent Banker’s website at www.independentbanker.org.