Santa Cruz County Bank welcomes Lighthouse Bank customers!
Effective April 6, please visit Santa Cruz County Bank for all your banking needs and questions. Provided below are important merger information and communications.
Online Banking Only:
Online Banking User Welcome Letter
Personal Online Banking User Instructions
Business Online Banking User Instructions
ACH & Wire User Instructions
Remote Deposite User Instructions & Installation Scheduling
Merger Related Announcements:
- Tuesday, May 28, 2019 - Santa Cruz County Bank and Lighthouse Bank jointly announce agreement and plan of reorganization and merger (the “Agreement”).
- Thursday, August 22, 2019 - Receipt of approval of merger from the Federal Deposit Insurance Corporation (FDIC).
- Monday, September 16, 2019 - Receipt of approval of merger from the State of California Department of Business Oversight (DBO).
- Wednesday, September 18, 2019 - Santa Cruz County Bank and Lighthouse Bank Special Shareholder meetings, held separately by each entity, to vote on the merger.
- Friday, October 18, 2019 - Close of merger.
Week of March 25, 2020: - Lighthouse Bank account holders will receive Santa Cruz County Bank debit cards by mail
- Friday, April 3, 2020: - Lighthouse Bank debit cards will be inactive after 3:00pm. Lighthouse Bank’s online banking and mobile banking will be offline starting at 4:00pm. The Stevens Creek Boulevard Lighthouse Bank branch will be open until 5:00pm. The N. Pacific Avenue Lighthouse Bank branch will be open until 6:00pm.
- Monday, April 6, 2020 - Lighthouse Bank accounts are fully integrated into Santa Cruz County Bank. Your new Santa Cruz County Bank debit card is now ready for use. You can login to the Santa Cruz County Bank online banking system and set up your new profile.
Frequently Asked Questions
Q: Why are my accounts moving to Santa Cruz County Bank?
A: Lighthouse Bank and Santa Cruz County Bank have completed a successful merger and will operate as Santa Cruz County Bank starting April 6, 2020.
Q: When will my accounts be transferred over to Santa Cruz County Bank?
A: A systems integration will be completed over the weekend of April 4-5, at which point your accounts will be transferred to Santa Cruz County Bank. In a small number of instances, accountholders will be notified in advance if the above timing of transfer needs to be accelerated.
Q: Will my account numbers change?
A: No, your account numbers will remain the same unless we have notified you otherwise.
Q: Will branch phone numbers change?
A: No. All branch phone numbers will remain the same.
Q: When will I be able to make transactions at Santa Cruz County Bank branches and ATMs?
A: On April 6, Lighthouse Bank customers can start making transactions at all Santa Cruz County Bank locations.
Q: May I use my Lighthouse Bank checks after the merger?
A: Yes, you may continue using your Lighthouse Bank checks until December 31, 2020. When you re-order checks, you will receive new Santa Cruz County Bank checks.
Q: Will the name of Lighthouse Bank change?
A: The name and logo of Lighthouse Bank will change to Santa Cruz County Bank.
Q: Will Lighthouse Bank branches be closing?
A: No. The two branches, Santa Cruz and Cupertino, will remain open as Santa Cruz County Bank. All signage will change to reflect the merger.
Q: Will branch hours be changing?
A: No. Branch hours will remain the same. Please visit us online at www.sccountybank.com for a complete listing of hours by location.
Q. What happens to my FDIC Insurance when the two banks merger?
A. See FDIC Coverage information section below.
FDIC Insurance Coverage Information
The following question and answers will help depositors understand their insurance coverage following the merger. Additional resources are available at www.fdic.gov.
Q. I have deposit accounts at Santa Cruz County Bank and Lighthouse Bank. What happens to my FDIC Insurance when the two banks merge?
When the merger closes*, and the deposit accounts at Lighthouse are acquired by Santa Cruz County Bank, the Lighthouse Bank deposits will be separately insured from any accounts a depositor may already have at Santa Cruz County Bank for an initial period of six months. This grace period is intended to give depositors an opportunity to restructure their accounts if the merger causes a depositor to have funds in excess of the insurance limits at Santa Cruz County Bank. If a depositor has funds at only Santa Cruz County Bank or Lighthouse Bank, this grace period will not apply, as the depositor’s insurance coverage will be unaffected by the merger.
*The merger closing date is October 18, 2019.
Q. I have a CD at Lighthouse, how will the merger affect my FDIC Insurance?
The CDs that will be acquired by Santa Cruz County Bank will be separately insured from pre-existing deposit accounts at Santa Cruz County Bank, subject to the following rules:
- Time deposits that mature after the initial six-month grace period remain separately insured until they mature.
- Time deposits that mature during the initial six month grace period and are renewed for the same time period and the same dollar amount as the original deposit (with or without accrued interest added to the principal amount), will continue to be separately insured until the first maturity date after the expiration of the six-month period.
- Time deposits that mature during the initial six month grace period and are renewed for a different dollar amount or a different time period (even if Santa Cruz County Bank does not offer CDs for the original time period), or time deposits that mature within the first six months and are not renewed and thereby become regular savings or demand deposits, are separately insured only until the end of the six-month period.
Q. Once the six month grace period has expired, I will have more than $250,000.00 on deposit and want it all to be FDIC insured, what are my options?
The FDIC insures deposits according to the ownership category in which the funds are insured and how the accounts are titled. Deposits held in different ownership categories are separately insured up to at least the $250,000 each. Designating beneficiaries can also increase coverage. For example, a revocable trust account. including POD accounts with one owner naming three unique beneficiaries can be insured up to $750,000.
Stock Exchange Information
Exchange of Lighthouse Bank stock for Santa Cruz County Bank stock
What do I need to do to exchange my Lighthouse Bank stock for Santa Cruz County Bank stock?
If your shares are held in a brokerage account, your shares will automatically be exchanged for 0.5204 shares of Santa Cruz County Bank common stock. No fractional shares of Santa Cruz County Bank stock will be issued. Instead, you will receive an amount in cash (without interest), rounded to the nearest cent, equal to the value of your fractional share interest.
If your shares are held in certificate form, you will receive a package by mail from Computershare, our Stock Transfer Agent, with instructions on how to exchange your shares. Lighthouse Bank shareholders with stock certificates will need to complete the Letter of Transmittal included in the package and return their Lighthouse Bank stock certificate(s) by mail to Computershare for the exchange to Santa Cruz County Bank stock.
I cannot find my Lighthouse Bank stock certificate. What do I do?
If you cannot locate some or all of your certificates, please complete the Lost Securities Affidavit which is included within the aforementioned packet of material you will be receiving by mail from Computershare, our Stock Transfer Agent.
If your shares are held in a brokerage account, there is nothing you need to do.
What is the exchange rate for exchanging Lighthouse Bank shares for Santa Cruz County Bank shares?
As a result of the merger, each Lighthouse Bank share has been cancelled an automatically converted into the right to receive the per share merger consideration consisting of 0.5204 of a share of Santa Cruz County Bank common stock. No fractional shares of Santa Cruz County Bank stock will be issued. Instead, you will receive an amount in cash (without interest), rounded to the nearest cent, equal to the value of your fractional share interest.
Q. Where can I call with questions about the package I received from Computershare?
You may direct any questions regarding the Letter of Transmittal to Computershare at (800) 546-5141.
Is the exchange of Lighthouse Bank stock for Santa Cruz County Bank stock a taxable event?
A description of the Merger Agreement was included in the Lighthouse Bank and Santa Cruz County Bank joint Proxy Statement/Offering Circular dated August 12, 2019 that was mailed under separate cover to Lighthouse Bank shareholders on or about August 15, 2019. You should read this carefully and in entirety. For certain information regarding the federal income tax consequences of the merger, see “Material Federal Income Tax Consequences” on pages 52 through 54 of the Joint Proxy Statement/Offering Circular, an excerpt of which is provided below:
Characterization of the Merger for Federal Income Tax Purposes.
Santa Cruz and Lighthouse intend that the Merger qualify as a "reorganization" within the meaning of Section 368(a) of the Code. Each recipient of this joint proxy statement/offering circular should consult his, her, or its tax advisor as to the United States federal income tax consequences to Santa Cruz, Lighthouse and to such recipient if the Merger does not qualify as a "reorganization." For purposes of the discussion that follows, it is assumed that the Merger will qualify as a "reorganization."
Tax Consequences of the Merger for Santa Cruz and Lighthouse.
No gain or loss will be recognized by Santa Cruz or Lighthouse as a result of the Merger.
Tax Consequences of the Merger for U.S. Holders of Lighthouse Common Stock.
A U.S. holder that exchanges shares of Lighthouse common stock for the per share merger consideration, i.e., a combination of Santa Cruz common stock and cash, will recognize gain (but not loss), determined separately for each identifiable block of shares of Lighthouse common stock (generally, Lighthouse common stock acquired at the same cost in a single transaction) that is exchanged in the Merger, equal to the lesser of (i) the excess, if any, of the amount of cash for fractional shares plus the fair market value of any Santa Cruz common stock received in the Merger, over such U.S. holder’s adjusted tax basis in the shares of Lighthouse common stock surrendered by such U.S. holder in the Merger and (ii) the amount of cash for fractional shares received by such U.S. holder in the Merger.
A U.S. holder's aggregate tax basis in the Santa Cruz common stock received by such U.S. holder in the Merger will equal such U.S. holder’s aggregate tax basis in the Lighthouse common stock surrendered in the Merger, increased by the amount of taxable gain or dividend income (discussed below), if any, recognized by such U.S. holder in the Merger, and decreased by the amount of cash for fractional shares received by such U.S. holder in the Merger. The holding period for the shares of Santa Cruz common stock received in the Merger will include the holding period for the shares of Lighthouse common stock exchanged therefor.
What is the tax basis on the exchange of Lighthouse Bank for Santa Cruz County Bank shares?
As required by IRS regulations, we have filed a Form 8937 with the IRS in conjunction with the following organizational action: Santa Cruz County Bank (SCZC) acquired Lighthouse Bank (LGHT) effective October 21, 2019 for common stock and cash in lieu of any fractional shares. Holders of Lighthouse Bank stock should consult their tax advisors for additional information or with any questions.
On April 6th both Lighthouse Bank branches, one in Santa Cruz and one in Cupertino, will remain as full service branches. Effective April 6th, customers of both banks will have access to a total of seven branches, six in Santa Cruz County and one in Cupertino.