News
San Diego Trust Bank Posts Record Earnings Of $1.25 Million
Bank Profits Nearly Double as Total Assets Approach $100 Million
SAN DIEGO - San Diego Trust Bank (OTC BB: SDBK) announced record earnings for the year ended December 31, 2006. In just its third full year of operations, the Bank reported Net Income of $1.25 million, nearly twice the amount reported in the prior year. The Company's Return on Average Assets (ROAA), the most widely recognized measure of profitability, was 1.51% for the year, ranking it amongst the very best in the nation for all 102 banks that commenced operations during 2003 according to FDIC data.
As a result of the Company's strong earnings, the Bank has fully recovered all of its initial operating losses plus organizational expenses prior to the end of its third year and finished 2006 with positive retained earnings, a feat no other independent community bank in San Diego has accomplished.
"Our focused and disciplined approach on establishing quality relationships with the 'best of San Diego' over the past several years has translated to exceptional performance on the earnings front," commented Michael Perry, Chairman and CEO. "Pursuing such a strategy has not only enabled us to deliver consistently superior results, but has positioned us to prosper for years to come. We are grateful for the continued support of our shareholders and the loyalty of our valued clients who have contributed immensely to our unrivaled success," he concluded.
The Company's earnings in 2006 were generated in spite of a pre-tax charge of more than $200 thousand due to the implementation of a new accounting standard which requires companies to now record compensation expense related to stock options. Prior to this year, this non-cash charge was only disclosed in a footnote to the financial statements and as such, no comparable expense was recorded.
The Company continues to generate double digit growth in loans and core deposits despite increased competitive pressures and signs that economic growth is slowing.
Gross Loans increased 20% during 2006 and totaled $65.6 million as of 12/31/06 compared to $54.6 million as of 12/31/05. Total deposits, fueled by growth in non-interest checking and money market accounts, increased to $81.2 million compared to $71.6 million a year ago. Total Assets increased to $95.1 million as of 12/31/06 from $83.5 million the year prior and currently exceed $98 million as of this date.
Asset quality has remained impeccable at the Bank, with not a single loan ever reported as past due or delinquent since inception. The Bank is considered "well-capitalized" by regulatory definition and has more than sufficient liquidity to fund future growth.
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 three 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 regarding the company's stock please contact Mr. Richard Levenson, Senior Vice 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)
| For the Twelve Months Ending: | December 31, 2006 | December 31, 2005 | % Change |
| Income Statement | |||
| Gross Loans | $65,585 | $54,601 | +20% |
| Total Deposits | $81,219 | $71,573 | +13% |
| Total Assets | $95,126 | $83,462 | +14% |
| Total Shareholder’s Equity | $13,491 | $11,657 | + 16% |
| Gross Revenue | $5,956 | $4,145 | +44% |
| Net Income (loss) | $1,250 | $645 | +94% |
| Return on Average Assets | 1.51% | .89% | +70% |
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