Bank of Santa Clarita Reports Fourth Quarter and Full Year 2020 Results

Rhea-AI Summary

Bank of Santa Clarita (OTC: BSCA) reported net income of $881,000 for Q4 2020, up from $658,000 in Q4 2019. For the year, net income reached $3,235,000, slightly higher than 2019's $3,217,000. Total assets increased by $68.6 million to $373.0 million, driven by $51.4 million in loan growth. Interest income for Q4 2020 stood at $3.0 million, with net interest income improving to $2.6 million. The bank maintains strong capital levels with a total risk-based capital ratio of 15.60%. Non-interest income also increased, reflecting growth despite challenges from the pandemic.

Positive

• Q4 net income rose to $881,000, a 34% increase from 2019.
• Total assets grew by $68.6 million to $373.0 million.
• Loan growth amounted to $51.4 million.
• Net interest income increased by $338,000 for the full year 2020.
• Non-interest income increased to $233,000 in Q4 2020, up from $174,000 in Q4 2019.
• Strong capital ratios with total risk-based capital at 15.60%.

Negative

• Net interest margin declined to 2.98% in 2020 from 3.32% in 2019.
• Provision for loan losses increased to $135,000 in Q4 2020.

Bank of Santa Clarita (OTC: BSCA) today reported financial results for the fourth quarter and year ended December 31, 2020.

Net income for the three months ended December 31, 2020 was $881,000 compared with $658,000 for the same quarter in 2019. Net income for year ended December 31, 2020 was $3,235,000 compared with $3,217,000 reported for 2019. The Bank’s total assets grew by $68.6 million to $373.0 million at December 31, 2020, spearheaded by $51.4 million in loan growth.

Frank Di Tomaso, Chairman and Chief Executive Officer, commented: “As we continue to serve our communities during these unprecedented times, we are very proud of our team delivering on these results as evidenced by our strong profits and significant loan growth year over year. The coming months will bring further challenges, as we roll out the second round of Paycheck Protection Program (“PPP”) loans, but we are determined to use them as opportunities to help our communities, customers, and employees succeed. We have been working with our clients on the forgiveness of PPP loans from the first round. 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 December 31, 2020, total interest and dividend income was $3.0 million compared with $2.9 million in the fourth quarter of 2019. Interest and dividend income for the full year 2020 was $11.5 million compared with $12.0 million reported for the previous year.

Interest expense for the 2020 fourth quarter decreased to $0.4 million from $0.6 million for the same quarter in 2019. Interest expense for the full year 2020 decreased to $1.9 million from $2.8 million reported for the previous year.

Net interest income for the 2020 fourth quarter improved to $2.6 million from $2.3 million for the fourth quarter of 2019. Net interest income for the full year 2020 was $9.6 million and exceeded 2019 by $338 thousand.

Net interest margin was 3.05% for the 2020 fourth quarter versus 3.28% in the 2019 fourth quarter. For the full year 2020, net interest margin was 2.98% compared with 3.32% for the full year 2019.

In light of the significant loan growth in 2020, the Bank recorded a $135 thousand provision for loan losses during the fourth quarter 2020, bringing the total provision of the year to $255 thousand. For the full year 2019, the Bank recorded a reversal of provision of $40 thousand.

Non-interest income was $233,000 for the 2020 fourth quarter and topped the previous year’s $174 thousand for the same period. For the full year 2020, the Bank’s non-interest income was $719,000 compared with $743,000 for the previous full year.

Non-interest expense for the fourth quarter 2020 was $1,557,000 compared with $1,431,000 for the same period last year. Non-interest expense for the full year 2020 was $5,559,000 compared with $5,522,000 for 2019.

The Bank’s efficiency ratio continues to be among the best in the industry. For the full year 2020, the Bank’s efficiency ratio was 53.9%.

Balance Sheet

At December 31, 2020, net loans increased to $284.3 million from $232.9 million at December 31, 2019. The Bank’s deposits rose to $283.0 million at the end of the 2020 from $232.1 million at December 31, 2019. Non-interest-bearing deposits increased to 39.3% of total deposits at December 31, 2020 versus 36.5% at December 31, 2019. Total assets increased to $373.0 million at the close of the 2020, an increase of $68.6 million from $304.4 million at December 31, 2019.

At December 31, 2020, The Bank remained “well-capitalized” under all regulatory categories, with a total risk-based capital ratio of 15.60%, a tier 1 risk-based capital ratio of 14.64%, a common equity tier 1 capital ratio of 14.64%, and a tier 1 leverage ratio of 10.78%. 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.

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 Dec. 31,							Twelve Months Ended Dec. 31,
			2020			2019				2020			2019
Interest Income
Loans			$	2,936		$	2,629			$	11,024		$	10,808
Interest Bearing Deposits at Other Financial Institutions				59			201				373			981
Investment Securities				36			49				88			238
Federal Funds Sold				-			-				-			3
Total Interest Income				3,031			2,879				11,485			12,030
Interest Expense
Demand				11			14				49			76
Money Market and Savings				77			144				356			454
Time Deposits				143			299				783			1,296
Borrowings				162			169				708			953
Total Interest Expense				393			626				1,896			2,779
Net Interest Income				2,638			2,253				9,589			9,251
Provision for Loan Losses				135			55				255			(40	)
Net Interest Income after Provision for Loan Losses				2,503			2,198				9,334			9,291
Noninterest Income				233			174				719			743
Noninterest Expense				1,557			1,431				5,559			5,522
Net Earnings Before Income Taxes				1,179			941				4,494			4,512
Income Tax Expense				298			283				1,259			1,295
Net Earnings			$	881		$	658			$	3,235		$	3,217

BANK OF

FAQ

What were Bank of Santa Clarita's financial results for Q4 2020?

The Bank reported a net income of $881,000 for Q4 2020, compared to $658,000 in Q4 2019.

How much did the total assets of Bank of Santa Clarita grow in 2020?

Total assets increased by $68.6 million to $373.0 million at the end of 2020.

What was the net interest income for Bank of Santa Clarita in 2020?

Net interest income for the full year 2020 was $9.6 million, exceeding 2019's figure by $338,000.

Did Bank of Santa Clarita's interest margin change in 2020?

Yes, the net interest margin declined to 2.98% in 2020 from 3.32% in 2019.

What is the total risk-based capital ratio for Bank of Santa Clarita?

The total risk-based capital ratio stands at 15.60%, indicating strong capital levels.