Lighthouse Bank Announces Second-Quarter Earnings
Lighthouse Bank Reports Strong Second-Quarter Earnings, Net Income Up 57 Percent Year-Over-Year
Santa Cruz, Calif., July 21, 2017 -Lighthouse Bank (OTC-QB: LGHT), a top-rated locally owned and operated community bank,  today released unaudited financial results for the quarter-ended June 30, 2017. Net income was $786 thousand, a 57% increase over the same quarter in 2016. Total assets grew to a record $244 million, an increase of $43 million, or 21%, from the quarter-ended June 30, 2016.
CEO Lane Lawson commented, "Our new headquarters location in downtown Santa Cruz and our first loan production office in Silicon Valley have allowed us to increase our visibility and enhance our profile in both markets.  This has led directly to our growth in assets and profitability."
These results represent the Bank's 32nd successive quarter of profitable operations. Highlights for the second quarter results include: Loans increased by $30.5 million, or 20% year over year; and deposits increased $40.8 million, or 24% compared to the quarter-ended June 30, 2016.        
In April, ranked Lighthouse Bank as the 5th healthiest bank in the nation in 2017.  This represents the second consecutive year that the Bank has been ranked as the 5th healthiest, of the approximately 6,000 Federally-Insured banking institutions in the nation. Ken Tumin, founding editor of commented, "Lighthouse Bank again this year achieved top scores in all categories assessed, and it has established itself as a consistent elite performer in our bank health rankings. To be ranked in the top 5 out of 6,000 banks in consecutive years is quite a testament to the foundation of strength and stability that Lighthouse's management and employees have been able to build." 
For the quarter-ended June 30, 2017, total shareholders' equity increased by $986 thousand to $32.6 million. Year-over-year, shareholders' equity increased $3.5 million, or 12%.

In May, 2017 the Bank paid its fourth $0.08 per share quarterly cash dividend to shareholders, following four previous consecutive quarterly cash dividends of $0.075 per share. In early 2015, the Bank paid a special $0.40 per share cash dividend to shareholders, which followed two stock dividends granted in 2011 and 2013. Since January 2015, the Bank has paid $2,332,722 in cash dividends to shareholders.
During the quarter-ended June 30, 2017, the Bank started the tenant improvements for its first full-service branch location in Silicon Valley, tentatively scheduled to open in September 2017. The Silicon Valley location, which opened as a Loan Production Office in December 2016 at 19240 Stevens Creek Blvd. in Cupertino, is adjacent to the new Main St. Cupertino Business Center and close to the 3.1 million sq. ft. Apple headquarters building currently under construction. The contiguous nature of the Silicon Valley market to that of Santa Cruz, staff experience in that market, as well as community bank consolidations, have combined to provide a unique growth opportunity for Lighthouse Bank in Silicon Valley.
Lighthouse Bank's consistently strong financial results continue to place it at the top of the industry in a variety of categories including asset quality, capital adequacy, return on average assets, return on average equity and operational efficiency.  SNL Financial ranked Lighthouse Bank as the 29th highest performing community bank in the nation based on 2016 performance of approximately 5100 banks of asset size under $1 billion.  Financial Management Consulting Group (FMC) rated the Bank among the highest performing banks in the state, as 12th out of 171 California banks in 2016 based on our overall performance.
For twenty consecutive quarters, the Bank has been rated by Bauer Financial as Five-Star "Superior" for strong financial performance, the top rating given by the independent bank rating firm. Lighthouse Bank has received its sixth consecutive designation of Super Premier performing bank by The Findley Reports, Inc. based upon 2016 financial performance. Lighthouse Bank has no financial relationship with any of these rating agencies.
Lighthouse Bank is a highly rated locally owned and operated full-service commercial bank. The Bank offers a full array of banking products and services to businesses, professionals, individuals, developers and commercial property owners. Lighthouse Bank is dedicated to providing exceptional personalized service and access to decision makers who are always close at hand.  The Bank offers unique services such as worldwide surcharge free ATM/Debit Cards, complimentary business courier service, and remote deposit capture, allowing the Bank to expand its geographical reach throughout Santa Cruz County and the Silicon Valley. 

Lighthouse Bank's headquarters are located at 2020 North Pacific Avenue in Downtown Santa Cruz, Ca. The Bank's Silicon Valley Lending office is located at 19240 Stevens Creek Blvd, Cupertino, Ca. 

The Bank's stock ( LGHT ) is actively traded Over the Counter via the Bank's market makers and online and full-service brokerage providers. More information on the Bank's stock and historical financial performance may be located on the Bank's website at or by calling 831-600-4000.

Member FDIC / Equal Housing Lender / SBA Preferred Lender

The attached release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuation in interest rates, inflation, government regulations and general economic conditions, and competition within the business areas in which the Bank is conducting its operations, including the real estate market in California and other factors beyond the Bank's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
For further information, please contact:
Lane S. Lawson
Chief Executive Officer
LIGHTHOUSE BANK | 831.600.4000 |

Main Office:
2020 North Pacific Avenue
Santa Cruz, Ca 95060

Silicon Valley Loan Production Office:
19240 Stevens Cre ek Boulevard
Cupertino, Ca 95014

Member FDIC