Bank of Santa Clarita Reports Record First Quarter 2021 Results

SANTA CLARITA, CA / ACCESSWIRE / April 22, 2021 / Bank of Santa Clarita (OTC PINK:BSCA) today reported record financial results for the first quarter ended March 31, 2021.

Net income for the three months ended March 31, 2021 was a record $1.1 million compared with $0.7 million for the same quarter in 2020 reflecting a 55.3% increase year over year. The significant increase was fueled by our commercial loan growth over the previous 12 months period.

Frank Di Tomaso, Chairman and Chief Executive Officer commented: "The Bank continued its strong momentum from the previous year with over $31 million in new loans during the first quarter of 2021 and has achieved a record level balance sheet at over $421 million in total assets. We continue to work with our clients who were adversely impacted during the pandemic including offering Payroll Protection Program (PPP) loans to those who qualified for that assistance. Bank of Santa Clarita continues to maintain strong capital levels, excess liquidity, and excellent credit quality which will allow us to continue to support the communities we serve and navigate through this pandemic."

Income Statement

For the three months ended March 31, 2021, interest and dividend income rose to $3.1 million from $2.8 million a year ago. Interest expense for the 2021 first quarter was $0.4 million, compared with $0.6 million in the same period last year.

Bank of Santa Clarita's net interest income for the 2021 first quarter improved to $2.7 million from $2.2 million for the first quarter of 2020, for an increase of $0.5 million for the three months period. The Bank's net interest margin was 3.08% for the first quarter ended March 31, 2021, reflecting a slight decrease from 3.18% at the end of the same period last year.

The Bank's allowance for loan losses as a percentage of loans outstanding has remained at 1.05% at March 31, 2021 and 2020 due to the stellar quality of the Bank's loan portfolio.

Non-interest income was $0.2 million for the 2021 first quarter reflecting no change from the first quarter of 2020. Non-interest expense for the 2021 first quarter was $1.4 million up slightly from the $1.3 million for the same period last year.

The Bank's efficiency ratio continues to be among the best in the industry. For the three months ended March 31, 2021, the Bank's efficiency ratio improved to 49.6% compared with 54.6% for the same period last year.

Balance Sheet

At March 31, 2021, total assets increased $48.2 million or 12.9% to $421.2 million from $373.0 million at December 31, 2020. Net loans increased to $298.5 million from $284.3 million and the Bank's deposits rose to $330.8 million from $283.0 million during the first quarter 2021. Non-interest-bearing deposits increased to 43.1% of total deposits at March 31, 2021 versus 39.3% at December 31, 2020.

For the first quarter 2021, the Bank remained "well-capitalized" under all regulatory categories, with a total risk-based capital ratio of 16.14%, a tier 1 risk-based capital ratio of 15.20%, a common equity tier 1 capital ratio of 15.20%, and a tier 1 leverage ratio of 10.50%. 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, founded in 2004, 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, for 15 years, 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
Bank of Santa Clarita
Executive Vice President
Chief Financial Officer
Corporate Headquarters
23780 Magic Mountain Parkway
Santa Clarita, California 91355
(661) 362-6000
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)