San Diego Trust Bank Decides Not to Apply for Federal Bailout Funds
Company Executives Have No Desire to Dilute Their Loyal Shareholders
San Diego, CA December 8, 2008 -- San Diego Trust Bank, (OTC BB: SDBK) one of the most consistently profitable banks in the entire country over the past several years, announced today that it does not intend to apply for funds available through the Capital Purchase Program, part of the federal government's now infamous Troubled Assets Relief Program, commonly referred to as "TARP".
San Diego Trust is one of the strongest capitalized financial institutions in all of Southern California, let alone, San Diego County. In fact, its capital ratios will still surpass those of most financial institutions in the region, even after they have received a capital injection from the government. As shown below, the Bank's capital ratios by most measures, are almost three times that needed to be considered "well-capitalized" by regulatory definition.
The Bank's actual capital ratios as of 9/30/08 are summarized as follows:
|Tier 1 Risk Based||6.0%||17.8%|
|Total Risk Based||10%||18.9%|
"After carefully studying all aspects of the program, our Board concluded that it was not in the best interest of our shareholders to participate", commented Michael Perry, Chairman, President and CEO. "Given that our Bank is so well-capitalized, why would we willingly agree to take taxpayer funds at the expense of our current shareholder base,?" he added. "While it might make sense for other banks to participate, we simply don't need the money," Perry concluded.
Unlike many banks across the nation, San Diego Trust has been able to successfully avoid many of the pitfalls currently wreaking havoc on the financial services industry. The Bank, which recently completed its fifth year of operation, has emerged as one of the strongest performing banks in the region, recording sixteen consecutive quarters of profitability. Furthermore, since inception, the Bank has not incurred a loan loss of any size and does not have a single past due loan in its portfolio.
Founded by several of San Diego's most respected banking veterans and business leaders, San Diego Trust Bank is dedicated to the timeless principles of superior local market knowledge, unparalleled service, and building exceptional shareholder value. With over four hundred years of experience in banking San Diegans, timely local decision making, and one of the most comprehensive product lines found in the market today, San Diego Trust Bank delivers "Performance You Can Trust."
San Diego Trust Bank common stock is traded on the Over-the-Counter Bulletin Board (OTCBB) under the symbol "SDBK". For information on acquiring the company's stock please contact Mr. Richard Levenson, President of Western Financial Corporation at (619) 544-0260.
For more information on the Bank please visit www.sandiegotrust.com or call (619) 525-1700.
CONTACT: Michael Perry
FORWARD LOOKING STATEMENTS
Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, loan production, balance sheet management, expanded net interest margin, the ability to control costs and expenses, interest rate changes and financial policies of the United States government and general economic conditions. The Bank disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any forward-looking statements contained herein to reflect future events or developments.