Laguna Bank Reports Quarter Reversal

Laguna Bank reported profits of $125,000 for fiscal 1984, a turnaround from a $434,000 loss posted during 1983. The Laguna Beach-based bank also reported a reversal for its fourth quarter, ended Dec. 31, recording earnings of $11,200, compared with a loss of $161,000 in the final three months of 1983.

John Watz, president and chief executive officer of the bank, attributed the improved financial results to decreased loan losses and general expenses and a reduction in the value of expensive brokered certificate of deposits to $100,000 from $2 million.

The 3-year-old bank’s total loan portfolio stood at $17.6 million on Dec. 31, up 23% from $14.3 million a year earlier. Deposits of $24.2 million were up 28.7% from $18.8 million. The primary capital-to-assets ratio was 8%, well above the 7% minimum generally required of independent community banks by state and federal regulators.

The bank’s assets were $26.5 million on Dec. 31, compared with $20.9 million at year end 1983.