News
San Diego Trust Bank Continues To Outperform Despite Industry Woes
Bank Records 15th Consecutive Quarter of Profitability
Asset Quality Remains Exceptional with Zero Past Due Loans
Non-Interest Bearing Deposits Climb 45% as Community Seeks "Safe Haven"
SAN DIEGO - San Diego Trust Bank (OTC BB: SDBK) known for its consistently strong performance, announced results for the quarter ended June 30, 2008. Despite a faltering economy, slumping housing market, and the much publicized turmoil surrounding the banking industry, San Diego Trust continues to outperform. The Bank recorded its 15th consecutive quarter of profitability earning $150 thousand for the quarter ended 6/30/08, just as strong as it"s earnings for the first quarter of 2008. More impressive is the fact that the Bank reported zero past due loans as of 6/30/08 and has had no charge offs since inception - a claim very few banks across the nation can make these days.
"The fact that we have been able to avoid the many pitfalls plaguing our industry and consistently report solid results is a testament to the viability of our strategic plan and the dedication of our entire team," commented Michael Perry, Chairman, President and CEO. "Our strong capital position, excess liquidity, and consistent earnings, provide San Diego Trust with a huge strategic advantage and has allowed the Bank to continue to establish quality relationships and gain market share during these difficult times," Perry added.
Year to date the Bank has earned $300 thousand despite a faltering economy, slumping housing market, continued pressure on margins, and the additional overhead expense associated with its recent expansion into North County. The strength of the Bank"s core earnings has allowed it to continue to generate consistently strong results despite today"s difficult operating environment.
Total Assets climbed a solid 12% compared to a year ago and totaled $108.1 million as of 6/30/08. Total Deposits increased 16.5% to $89.7 million as of 6/30/08 with "core deposits" (non-interest bearing and money market accounts) now representing 82% of all deposits. Non-interest bearing demand accounts climbed 45% and totaled $26 million as of 6/30/08 compared to $17.9 million as of 6/30/07.
As of June 30, 2008 the Bank"s Total Risk Based capital ratio of 17.7% was well in excess of the current regulatory definition of 10% for a well-capitalized institution.
Total loans equaled $68.0 million as of 6/30/08 compared to $72.5 million in the same period last year. The Bank has strategically reduced its exposure to certain sectors of the real estate market over the past twenty four months given the heightened levels of risk present in the market.
Asset quality continues to remain exceptional at the Bank. As of 6/30/08 the Bank did not report a single past due loan and has not reported a loss of any size since inception. The company has never engaged in the permanent residential mortgage market nor holds any sub-prime securities in its portfolio, and therefore is not impacted directly by the continued turmoil in the residential real estate market.
"We"ve seen a significant number of individuals as well as businesses move their relationship to San Diego Trust as they seek a "safe haven" amidst all the turmoil in the industry these days," Perry said. "We truly appreciate the confidence so many San Diegans have shown in the Bank and we will continue to put forth our very best on their behalf," he concluded.
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 / (619) 525-1727 / mperry@sandiegotrust.com
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.
SAN DIEGO TRUST BANK
SELECTED FINANCIAL DATA - UNAUDITED
(All figures in thousands)
| June 30, 2008 | June 30, 2007 | |
| Balance Sheet | ||
| Gross Loans | $68,041 | $72,514 |
| Total Deposits | $89,711 | $76,982 |
| Total Assets | $108,122 | $96,377 |
| Total Shareholder's Equity | $15,052 | $14,312 |
| For the Six Months Ended: | ||
| Income Statement | ||
| Net Interest Income | $2,474 | $2,340 |
| Non-Interest Income | 141 | 115 |
| Non-Interest Expense | 2,121 | 1,637 |
| Income Before Taxes | $ 494 | $ 818 |
| Income Tax Expense | 194 | 345 |
| Net Income | $ 300 | $ 473 |
| Regulatory Ratios | ||
| Total Capital / Risk Wtd. Assets: | 17.73% | 17.40% |
| Required to be Well Capitalized: | 10.00% | 10.00% |
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