Earnings Climb Sharply at San Diego Trust Bank
Strong Core Deposit Growth Results in Record Pre-Tax Profits of $1.15 Million
SAN DIEGO ? San Diego Trust Bank (OTC BB: SDBK) announced record results for the quarter ending 9/30/07 as well as the first nine months of the year. Despite a slowing economy, increasing pressure on margins, and the highly competitive nature of the San Diego market, the Bank has been able to successfully adapt to changing market conditions and consistently report increased earnings virtually each and every quarter.
Net Income before tax for the third quarter totaled $332 thousand, representing an 18% increase compared to the $282 thousand earned for the same period last year. Earnings before tax for the first nine months of the year climbed 24% and totaled $1.15 million compared to $931 thousand for the comparable period last year. The Company?s provision for taxes amounted to $489 thousand as of 9/30/07 whereas the Company?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 the significant increase in staff and other expenses that were incurred related to the opening of our new Encinitas Regional Banking Center,? commented Michael Perry, Chairman, President and CEO. ?This expansion has not only enabled us to capitalize on the consolidation in our market, but has also positioned the Bank for continued growth and success despite an ever-changing economic environment,? he added.
Total Assets climbed a solid 18% compared to a year ago and totaled $99.1 million as of 9/30/07. Total Deposits increased more than 18% to $83.7 million as of 9/30/07 with ?core deposits? (non-interest bearing and money market accounts) now representing almost 80% of all deposits. The most significant increase over the past twelve months was in non-interest bearing demand accounts which increased more than 72% from a year ago. Non-interest bearing demand deposits totaled $23.6 million as of 9/30/07 compared to $13.7 million as of 9/30/06, representing an increase of $9.9 million during this period.
Total loans increased 7% to $69.8 million as of 9/30/07 compared to $65.5 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 eighteen months which has resulted in a slower rate of loan growth than in previous quarters.
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 recent turmoil in the sub-prime market.
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 Bank is considered ?well-capitalized? by regulatory definition and has more than sufficient liquidity to fund future growth.
?Our continued and disciplined focus on core deposit growth has enabled the Bank to enhance profitability despite operating in a challenging interest rate environment,? stated Perry. ?While we will continue to move forward in this fashion, our immediate attention turns towards assisting our ?extended family? of fellow San Diegan?s in rebuilding their lives and businesses following the devastating fires that swept through our county,? 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.
SAN DIEGO TRUST BANK
SELECTED FINANCIAL DATA ? UNAUDITED
(All figures in thousands)
|For the Nine Months Ending:||Sept. 30, 2007||Sept. 30, 2006||% Change|
|Gross Loans||$69,848||$65,534||+ 7%|
|Total Deposits||$83,715||$70,713||+ 18%|
|Total Assets||$99,056||$84,064||+ 18%|
|Total Shareholder’s Equity||$14,572||$13,079||+11%|
|Pre-Tax Income||$ 1,150||$ 931||+ 24%|
|Provision for Taxes||489||1||n/a|
|Net Income after Tax||$ 661||$ 930||n/a|