Lighthouse Bank Continues to Out-Perform Peers

                Lighthouse Bank Continues to Out-Perform Peers

PR Newswire

SANTA CRUZ, Calif., Oct. 19, 2012

SANTA CRUZ, Calif., Oct. 19, 2012 /PRNewswire/ -- Locally owned Lighthouse
Bank (OTC Bulletin Board: LGHT) today released unaudited financial results for
the 3^rd quarter-ended September 30, 2012. The Bank posted a $457 thousand
profit for the period, representing the 13th successive quarter of profitable
operations and record quarterly earnings for the five-year-old Bank.
Year-to-date earnings for the first nine months of 2012 were $1.34 million
and represented a 30% increase in earnings compared to the same period-ended
September 30, 2011. Shareholders' equity increased by $741 thousand to $20.4
million during the 3^rd quarter of 2012. The Bank experienced significant
growth in deposits and solid growth in loans during the quarter. Compared to
the same period ended September 30, 2011, deposits increased by 27% and loans
increased by 21%. Continued growth in deposits enabled Lighthouse Bank to
commit additional resources to local lending. Lighthouse Bank's lending
efforts continue to focus on its core market of Santa Cruz County. 

The Bank's loan loss reserve of 2.99% of gross loans remained significantly
above industry averages. The Bank had no past due loans in excess of 30 days
at September 30, 2012. Total nonperforming assets of $870 thousand
represented only 0.5% of total assets. Lighthouse Bank's stellar financial
performance continues to garner industry accolades. The Bank is rated by Bauer
Financial as 5-Star "Superior", the top ranking given by the independent bank
rating firm. FMC Consulting Group named the Bank as among the top 15 (of 230)
state chartered Banks in California. The Findley Reports named Lighthouse
Bank a "Super Premier" performing bank, the highest ranking given by the
well-known banking publication. The Bank has no financial relationship with
any of these rating
agencies.

ABOUT LIGHTHOUSE BANK:
Lighthouse Bank is a locally owned and operated full-service commercial bank
located in Santa Cruz, CA. The Bank offers a full array of banking products
and services to businesses, professionals, individuals, developers and
commercial property owners. The Bank is dedicated to providing exceptional
personalized service and access to decision makers who are always close at
hand. The Bank offers a unique worldwide ATM fee rebate program and
complimentary business courier service which expands the geographical reach of
its banking office location throughout Santa Cruz County.Lighthouse Bank is
committed to operating an open, ethical and financially successful company
without engaging in the corporate excesses that have come to characterize the
financial services industry. All decisions are intended to contribute to the
long-term success of its clients, employees, owners and the community it
serves. Lighthouse Bank received no TARP funds and has neither accepted nor
requested government assistance of any kind. Lighthouse Bank has never been
subject to either formal or informal regulatory action.

Lighthouse Bank is located at 111 Mission Street in Downtown Santa Cruz, CA.
Lighthouse Bank's common stock is listed on the Over-the-Counter (OTC)
Bulletin Board under the stock symbol LGHT. More Information on the Bank may
be obtained through its website www.lighthousebank.netor by calling
831-600-4000.

                     Selected Financial Data (unaudited)
                     Quarter-Ended             Change   Year-to-Date Ended        Change
                     9/30/2012    6/30/2012    %        9/30/2012    9/30/2011*   %
Balance Sheet
Total assets         $            $            6%       $            $            26%
                     171,533,262 161,110,854          171,533,262 136,576,720
Gross loans          93,756,667   91,527,404   2%       93,756,667   77,639,125   21%
Allowance for loan   2,807,916    2,671,314    5%       2,807,916    2,619,000    7%
losses
Non interest-bearing 38,921,706   33,082,812   18%      38,921,706   30,498,263   28%
deposits
Total deposits       150,387,191  140,827,597  7%       150,387,191  118,087,432  27%
Shareholders' equity 20,421,740   19,680,615   4%       20,421,740   18,336,624   11%
Income Statement
Interest income      1,768,810    1,770,664    0%       $          $          14%
                                                        5,261,193   4,596,539
Interest expense     148,291      148,640      0%       446,107      487,382      -8%
Net interest income  1,620,519    1,622,024    0%       4,815,086    4,109,157    17%
Provision for loan   90,000       88,000       2%       198,000      694,000      -71%
losses
Non-interest income  88,596       86,870       2%       269,592      216,498      25%
Non-interest expense 895,887      930,515      -4%      2,767,069    2,748,692    1%
Net income before    723,228      690,379      5%       2,119,609    882,963      140%
taxes
Income tax expense   266,171      244,117      9%       780,066      (147,070)    -630%
(benefit)
Net income           $        $        2%       $          $          30%
                     457,057     446,262              1,339,543   1,030,033
Earnings per share   $       $       0%       $       $       29%
(basic) *              0.22      0.22               0.66      0.51
Book value per share $       $       4%       $       $       11%
*                     10.02       9.66              10.02       9.00
Ratios
Net interest margin  4.07%        4.51%
Equity
capital-to-total     11.9%        12.2%
assets
* adjusted for 10% stock dividend of December
5, 2011
#SharesOutstanding 2,038,324    2,038,324             2,038,324    2,038,324

SOURCE Lighthouse Bank

Website: http://www.lighthousebank.net
Contact: Richard Hofstetter, President & CEO, +1-831-600-4000
 
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