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SANTA CLARITA, Calif.--([ BUSINESS WIRE ])--Bank of Santa Clarita (OTCBB: BSCA) today announced its earnings for the first quarter of 2012.

"We are pleased with our operating results, as the Bank reported a 134% year-over-year increase in first quarter earnings, an improvement in our net interest margin, and continuing excellent asset quality, with no loan charge-offs in 2011 or 2012"

Bank of Santa Clarita, the only commercial bank headquartered in the Santa Clarita Valley, reported net earnings for the first quarter of 2012 totaling $68,000 as compared to $29,000 for the first quarter of 2011. Results for the first quarter of 2012 reflect costs associated with the Bankas management restructuring; however, the Bank expects to benefit from the lower management expense structure in future periods.

The Bank recorded growth in the loan portfolio amounting to $9.8 million or 8% as compared to those balances as of March 31, 2011. In addition, the Bankas net interest income increased $135,000 or 9% over the first quarter of 2011. The Bank reported $1.7 million of net interest income for the first quarter of 2012 as compared to the $1.5 million reported for the first quarter of 2011. This growth was primarily the result of an increase in the net interest margin to 3.53% in the first quarter of 2012 from 3.33% in 2011as first quarter, which improvement was largely driven by a significant reduction in the cost of deposits, as the Bank has seen the overall effective cost of deposits for the first quarter of 2012 decline to 0.82%, as compared to 1.18% for the first quarter of 2011. The Bank continues to experience excellent credit quality in its loan portfolio, as nonaccrual loans totaled $13,000 at March 31, 2012, as compared to $16,000 as of December 31, 2011 and $61,000 as of March 31, 2011.

aWe are pleased with our operating results, as the Bank reported a 134% year-over-year increase in first quarter earnings, an improvement in our net interest margin, and continuing excellent asset quality, with no loan charge-offs in 2011 or 2012,a stated Chairman and Chief Executive Officer Frank Di Tomaso. aLooking toward the future, we believe our operating results point to a continued trend of favorable loan and deposit growth by providing high-quality banking products and services within the communities we serve.a

Mr. Di Tomaso added, aBecause the economic environment presents many challenges, the Board of Directors recently streamlined senior management to ensure that it will be more efficient, will be more cost-effective and will enhance the bankas flexibility to respond quickly for growth, both organically and externally.a

At March 31, 2012, shareholdersa equity totaled $21.0 million and the Bankas total risk-based regulatory capital ratio was 14.64%, exceeding the awell-capitalizeda level of 10% which is prescribed in applicable capital regulations. The Bank also continues to maintain substantial liquidity positions, retaining significant balances of liquidity on its balance sheet as well as readily available collateralized borrowings and other potential sources of liquidity.

Bank of Santa Clarita, founded in 2004, is the only independent, full service commercial bank headquartered in the Santa Clarita Valley and generally serves the needs of retail consumers, small to mid-sized businesses, professionals, entrepreneurs, and high-net worth individuals. The Bank provides local, experienced decision-making and the personalized service that growing businesses need on a daily basis. Bank clients have direct access to executive management and professional staff members to address their SBA and other credit requirements, and also technology-based services that include online bill-paying, remote capture depositing, check imaging and initiating online wire transfers, among other cash management facilities, which services enable its clients to effectively and efficiently manage their cash and credit needs.

Bank of Santa Clarita, 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 Bankas 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 Bankas operating results, its ability to attract deposit and loan customers, the quality of the Bankas 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