Security California Bancorp (OTCBB:SCAF), the parent company of Security Bank of California, reported today earnings for the first six months of 2013 of $1.542 million, up $1.134 million from the $408 thousand reported for the same period in 2012. Highlights compared to same period ended June 30, 2012 include: Total Assets were at $498 million, up $38 million or 8%Total Loans grew $16 million or 5% to $323 millionTotal Deposits increased $18 million or 4% to $413 million Net income available to common shareholders was $1.506 million or 27 cents diluted earnings per common share, an increase of 20 cents per share or 35% compared to a year ago. “We are pleased with our overall growth, given the competitive pricing pressures present in each of our markets,” commented James A. Robinson, Chairman and CEO. “Nevertheless we see significant opportunities for us going forward given our dedicated approach to delivering our relationship-focused business banking model in each of the communities we serve. “With the opening of our Loan Production Office in Palm Desert earlier this month, we now have 6 locations,” added Robinson. “We see the Coachella Valley as a vibrant economic engine and we are excited about the Bank’s future in that market.” The following are the changes and movements compared to a year ago in the major components of the statement of conditions, the mix and overall structure of which provide stability and are instrumental in the generation of sustainable core income: Total interest bearing balances or short term investments with correspondent banks have been reduced by $37 million to a more efficient level of $20 million, and is being continuously shifted to profitable earning assets, i.e., AFS investment securities and loans. Total investments in AFS Securities grew to $130 million or 49% that provides a better risk based earning assets and satisfactory level of readily available stand by liquidity. The securities portfolio consists of government agency and agency sponsored debenture bonds, and mortgage related securitized collateral. Total loans have moved up organically by $15 million or 5% in a challenging market to $323 million, a level that is a major source of stable and sustainable interest income. The loan portfolio’s C & I concentration reflects the overall business strategy of the Company that emphasizes the importance of solid business relationships with its clientele base. Total deposits increased to $413 million, a net growth of $18 million or 11%, which is prevalently in the non-interest bearing DDAs, the balance of which grew to $180 million or 44% of the total deposits. Loan Portfolio Profile: Of the total loans of $323 million, 98% are performing or on accrual status. The Company’s non-performing loans (“NPL”) are fair valued at $6.4 million, a favorable change of $1.1 million or 15% compared to a year ago. Loans that were charged off during the first six months of 2013 were $281 thousand compared to $3.6 million that were written off during the same period a year ago. The estimated Allowance for Loan & Lease Losses (“ALLL”) of $5.942 million is about 1.84% of the consolidated total loans. The Company’s Texas Ratio continues to be stable at 8.45%, a reduction from 10.96% from a year ago. (Texas Ratio represents non-performing + 90 days past due loans divided by Tangible Equity + ALLL). Operating Performance: The Company’s net income of $1.542 million included the following major components and their movements compared to the same period a year ago: Net Interest Income was $8.434 million, an increase of $533 thousand or 6.7% primarily driven by higher net growth in earning asset balances. Provision for Loan & Lease Losses (“PLLL”) of $300 thousand is a significant favorable turnaround from $2,469 thousand, which is a representation of much improved credit quality of the loan portfolio. Non-Interest Income was $1.726 million, better by $338 thousand led by the positive impact of SBA related income. Non-Interest Expense was $7.225 million, higher by $1.135 million, principally due to investment in additional personnel complement and improvement in operational structure vital and necessary to support the on-going growth in the Company. Capital Requirements: The Company with a capital of $63.6 million is well capitalized and at this level provides satisfactory cushions over minimum regulatory requirements. The Tier 1 leverage ratio is 13.34%, Tier 1 risk based ratio is 16.74%, and the Total risk based ratio is 18.00% compared to regulatory minimum standards of 5.00%, 6.00% and 10.00%, respectively. Security California Bancorp is traded on the Over the Counter Bulletin Board (“OTCBB”) under the symbol SCAF.OB. It offers, through its wholly owned subsidiary, Security Bank of California, personalized banking services to businesses and individuals through its full service offices in Riverside, San Bernardino, Redlands and Orange. It also has Loan Production Offices (“LPO”) in Irwindale and Palm Desert.