Santa Cruz County Bank, a leading community bank with assets of $1.75 billion, has announced its unaudited earnings for Q2 2023. The bank reported a net income of $8.3 million for the quarter, marking a 31% increase from the same period in the previous year, but a 6% decrease from the prior quarter. This decrease primarily reflects the pressure from the rising cost of funds. Earnings per share for Q2 2023 increased by $0.24 over the prior year's quarter but decreased by $0.06 and $0.07 over the prior quarter for basic and diluted earnings per share, respectively.

For the first half of 2023, the bank's net income was $17.2 million, a 46% increase from the first half of the previous year. Both basic and diluted earnings per share in the first half of 2023 improved over 2022 by $0.66.

The bank's CEO, Krista Snelling, highlighted the record-setting gross loans (excluding PPP) for the quarter and strong return on average assets and net interest margin. However, she also acknowledged the impact of market interest rate pressure, which pushed the bank's cost of funds higher by 40 basis points during the second quarter to 78 basis points.

The bank's robust performance led to it being listed again in American Banker Magazine’s Top 200 Community Banks & Thrifts in the US, based on a 3-year return on average equity for institutions under $2 billion in assets.