The Bank of Santa Clarita released its fourth quarter 2011 earnings Friday, announcing that it had achieved record pre-tax earnings and strong loan growth for 2011.

Founded in 2004, the only commercial bank headquartered in the Santa Clarita Valley, the Bank of Santa Clarita reported net earnings for fourth quarter totaling $223,000, up from $104,000 for the period of 2010.

The bank also reported a $418,000 growth in pre-tax earnings, which totaled $380,000 for the fourth quarter of 2011, as compared to pre-tax loss of $38,000 for the fourth quarters of 2010.

The Bank of Santa Clarita reported an increase in net interest income of $6.63 million in the fourth quarter, compared with $5.98 million recorded in 2010.

For the years ended Dec. 31, 2011, and 2010, net earnings for the bank totaled $381,000 and $569,000, respectively, while pre-tax earnings totaled $613,000 and $267,000, respectively, for those two years.

In 2011, the bank relocated its headquarters to Magic Mountain Parkway, off Citrus Street in Valencia and terminated the lease on its former headquarters, which resulted in a $250,000 charge for the early-termination fee.

The expense was reported in its second quarter 2011 report and was part of a plan to provide more efficient bank operations.

In large part, the headquarter relocation resulted in an increase of total noninterest expenses in 2011 of $416,000.

During 2011 the bank’s loan portfolio grew as net loan balances totaled $135.5 million at Dec. 31, 2011, as compared with $128.3 million at Dec. 31, 2010, reflecting growth of $7.2 million or 6 percent.

“We are very pleased with our operating results, as the bank reported a record level of pre-tax earnings, an improvement in our net interest margin, and continuing excellent asset quality, with no charge-offs in 2011 and nonaccrual loans totaling only $16,000 at Dec. 31, 2011,”  said James D. Hicken, president and CEO.

Considering the second quarter charge the bank took when it exercised its option to terminate the lease on its former headquarters, the bank’s core profitability has improved, Hicken said.

“Our facilities-related decisions will have the effects of providing both substantial cost savings over the next three years and also the physical space needed to accommodate our growth for the future,”  he said.

Last year represented a challenging year for the bank, said Frank Di Tomaso, executive chairman. The Bank of Santa Clarita consolidated a branch office and eliminated an expensive building lease, and saw growth in its loans and decreased its cost of deposits.

“As we now look to 2012 with great excitement, we believe that we are well-positioned to continue our loan and deposit growth by providing high-quality service to our local community,” Di Tomaso said.