News
San Diego Trust Bank Reports Strong 1st Quarter Results
Total Assets Top Record $110 million as New Office Ramps Up Quickly, Bank Records 14th Consecutive Quarter of Profitability
SAN DIEGO - San Diego Trust Bank (OTC BB: SDBK) known for its consistently strong performance, announced results for the quarter ended March 31, 2008 today. Despite a faltering economy, slumping housing market, and continued pressure on margins, the Bank recorded its 14th consecutive quarter of profitability, earning $150 thousand during the first quarter of 2008. The Bank turned profitable after just its third full quarter of operations and has continued to post solid results ever since.
"We're very pleased to be able to report such strong results to our shareholders in light of the much publicized challenges facing the banking industry today," commented Michael Perry, Chairman, President and CEO. "This quarter's results were significantly ahead of plan given the state of the economy and the additional overhead expense incurred with our recent expansion into North County late last year," he added. "Our ability to adapt to ever-changing market conditions and outperform is a testament to the strength of our core earnings and the dedication of our entire team," concluded Perry.
The Bank opened a full service office in Encinitas on October 15, 2007 and the results to date have been exceptional. In less than six months the Bank's new office reported well in excess of $20 million in core deposits in addition to numerous commercial lending relationships. This strong growth has enabled the Bank to offset a large portion of the additional expense associated with such expansion. By comparison, the Bank reported net income of $234 thousand for the first quarter of 2007.
Total Assets climbed a solid 12.5% compared to a year ago and reached an all-time high of $110.5 million as of 3/31/08. Total Deposits increased 14% to $89.9 million as of 3/31/08 with "core deposits" (non-interest bearing and money market accounts) now representing 81% of all deposits. Non-interest bearing demand accounts totaled $23.1 million as of 3/31/08 and accounted for 26% of all deposits.
Total loans equaled $70.7 million as of 3/31/08 compared to $70.0 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. The Bank is considered "well-capitalized" by regulatory definition and has more than sufficient liquidity to fund future growth.
Asset quality continues to remain exceptional at the Bank. As of 3/31/08 the Bank did not report a single non-performing loan and has not reported a loss of any size since inception, a claim very few banks across the nation can make these days. 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 sub-prime market.
"Given the Bank's excellent liquidity, strong capital position, and consistent earnings, we are well positioned to weather the current economic downturn and to capitalize on opportunities in our market as they arise," concluded Perry.
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
(Bank Records 14th Consecutive Quarter of Profitability619) 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)
| March 31, 2008 | March 31, 2007 | |
| Balance Sheet | ||
| Gross Loans | $70,716 | $70,029 |
| Total Deposits | $89,929 | $78,996 |
| Total Assets | $110,485 | $98,203 |
| Total Shareholder's Equity | $14,990 | $13,847 |
| For the Three Months Ended: | ||
| Income Statement | ||
| Net Interest Income | $1,235 | $1,160 |
| Non-Interest Income | 70 | 56 |
| Non-Interest Expense | 1,060 | 813 |
| Income Before Taxes | $ 245 | $ 403 |
| Income Tax Expense | 95 | 169 |
| Net Income | $ 150 | $ 234 |
|