San Diego Trust Bank Posts Record 2007 Results
Pre-Tax Earnings Climb to Record $1.33 Million
Total Assets Top $106 Million on Strong Core Deposit Growth
SAN DIEGO - San Diego Trust Bank (OTC BB: SDBK) announced record results today for the year ending 12/31/07. Despite a slumping real estate market, slowing economy, and increasing pressure on margins, the Bank has been able to successfully adapt to changing market conditions and posted record pre-tax earnings and double-digit growth in assets.
Net Income before tax climbed almost 7% and totaled $1.33 million for the year ending 12/31/07 compared to $1.25 million for the prior year. The Bank's provision for taxes amounted to $566 thousand in 2007 whereas the Bank's earnings were not fully taxable last year and as such, no comparable provision was allocated.
"It's exciting to be able to report such strong results to our shareholders given today's unfavorable economic environment and the much publicized challenges facing our industry," commented Michael Perry, Chairman, President and CEO. "The fact that we were able to report increased earnings despite such factors and the significant expense incurred this year to open our new Encinitas Office truly underscores the strength of our core earnings and the dedication of our entire team," he added. "We remain grateful for the continued support of our shareholders and the loyalty of our valued clients who have contributed immensely to our success," Perry concluded.
Total Assets climbed almost 12% compared to a year ago and totaled $106 million as of 12/31/07. Total Deposits increased more than 11.6% to $90.6 million as of 12/31/07 with "core deposits" (non-interest bearing and money market accounts) now representing more than 82% of all deposits. The most significant increase over the past twelve months was in non-interest bearing demand accounts which climbed more than 28% from a year ago and totaled $25.2 million as of 12/31/07 compared to $19.6 million as of 12/31/06. The Company has no borrowed funds or reliance on high-priced CD's.
Gross Loans increased 8.5% to $71.2 million as of 12/31/07 compared to $65.6 million a year earlier. In anticipation of a weakening real estate market, management strategically began to reduce its exposure to certain sectors of the real estate market over the past twenty-four months which has resulted in a slower rate of loan growth than in previous years.
More importantly, asset quality continues to remain impeccable at the Bank, with not a single loan ever reported as past due or delinquent 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 by the turmoil in the sub-prime market.
The Bank is considered "well-capitalized" by regulatory definition and has more than sufficient liquidity to fund future growth.
"Our focused and disciplined approach on establishing quality relationships with the 'best of San Diego' over the past several years has not only translated to exceptional performance on the earnings front, but has enabled us to build a sound loan portfolio that continues to perform exceptionally well," added Perry. He concluded, "Not withstanding the challenges ahead, we move forward into the new year with a solid balance sheet, strong core earnings, and a continued focus on the realization of our long-term strategic plan."
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.
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)
|For the Year Ending:||Dec. 31, 2007||Dec. 31, 2006||% Change|
|Gross Loans||$71,152||$65,585||+ 8.5%|
|Total Deposits||$90,599||$81,219||+ 11.6%|
|Total Assets||$106,393||$95,126||+ 11.8%|
|Total Shareholder’s Equity||$14,755||$13,492||+ 9.36%|
|Pre-Tax Income||$ 1,334||$ 1,251||+ 6.6%|
|Provision for Taxes||566||1||n/a|
|Net Income after Tax||$ 768||$ 1,250||n/a|