Santa Cruz County Bank welcomes strong Q2

The following is an article from the Santa Cruz Sentinel

By JENNIFER PITTMAN - jrpittman@comcast.net

Posted: 07/27/2010 07:47:47 AM PDT SANTA CRUZ --

Cost-savings measures and new income helped boost second quarter assets and profits for Santa Cruz County Bank. The bank reported net income of $369,149 compared to net income of $66,243 for the same quarter a year ago, and $267,980 for the first quarter of 2010. Assets have climbed to more than $280.3 million. Non-interest bearing deposits, which represent 34 percent of the bank's total deposits, grew 35 percent from a year ago. "Last year we put a lot of things in place to operate within this low-interest rate environment we're in," said David Heald, chief executive officer and president of the bank. In the past year, the bank has cut back two positions, as well as cell phone expenses and janitorial services. "We're just digging deeper into overall operations," Heald said. "We're not a speedboat. We're a ship so it takes a while for things you initiate to improve your performance to take hold and actually show up." Community deposits are growing at a faster pace than loan demand and loan delinquencies. Non-performing assets are negligible and its loan loss reserve is well funded, the bank reported. Heald said it all puts the bank in a strong position for an improving economy. "We definitely feel that with the position of the bank -- its asset levels and low cost deposits -- that we certainly have a great opportunity in the future when the economy begins to show improvement and interest rates begin to go up." The bank is also seeing more activity in the business loan department, including acquisition-related loans, he said. In the second quarter, the U.S. Department of Agriculture Rural Development ranked the bank third in California and 11th in the nation for its production of Business and Industrial loans.