SAN DIEGO TRUST BANK POSTS RECORD QUARTERLY RESULTS
Bank Records 19th Consecutive Quarterly Profit as Earnings Climb
Total Deposits and Total Assets at Record Highs
SAN DIEGO – San Diego Trust Bank (OTCBB: SDBK) known for its consistently solid performance, reported increased earnings as well as record total deposits and record total assets for the period ending June 30, 2009. Total Assets stood at $118 million and deposits also hit a new all-time high of $100.9 million, up 12.5% from the prior year’s figures. The Bank also recorded its 19th consecutive quarter of profitability, generating net earnings after-tax of $141 thousand for the three months ending 6/30/09, despite having to expense more than $60 thousand for the FDIC’s “special assessment” required of all federally insured financial institutions.
The Bank’s after-tax earnings increased 12% from the previous quarter, in spite of the special assessment. Excluding this non-operating expense, after-tax earnings totaled $176 thousand - representing an increase of 40% from the prior period. The company reported after-tax earnings of $150 thousand for the comparable period last year, however, there was no FDIC special assessment expense incurred last year. The Bank reported net income after-tax of $267 thousand for the six months ending 6/30/09 compared to $300 thousand in the prior year.
“The Bank’s ability to report increased earnings compared to the prior quarter, despite the additional burden of the FDIC assessment, is a testament to the strength of our core earnings and the efforts of our entire team,” commented Michael Perry, Chairman, President and CEO. “Our strong capital position, consistent earnings, and excellent liquidity have enabled us to take advantage of several opportunities in the region and increase market share as more banks are acquired or merged out of existence,” he added. “Going forward we see substantial opportunities for continued growth in assets and earnings as consolidation in our local market accelerates throughout the year,” Perry concluded.
Highlights of the company’s second-quarter performance include:
· Total Assets increased to a record $118 million, up 9% from the same period a year ago.
· Total Deposits increased 12.5% to a record $100.9 million with core deposits representing 85% of all deposits. The Bank has zero brokered deposits.
· Net Income after-tax for the second quarter (including FDIC special assessment) totaled $141 thousand, up 12% from the previous quarter.
· Net Income after-tax (including the FDIC Special Assessment) for the six months ending 6/30/09 totaled $267 thousand compared to $300 thousand in the prior year. There was no FDIC Special Assessment in the prior year.
· Nineteen (19) consecutive quarters of profitability, unmatched in the local community banking industry.
· Asset Quality remains exceptional with not a single loan loss incurred since inception.
· Capital Ratios significantly exceed those required to be considered “well-capitalized”.
· Recognized as the only “5-Star”, publicly traded community bank in all of San Diego County, by Bauer Financial, Inc.
According to FDIC data, San Diego Trust Bank ranks as one of the most consistently profitable banks in not just the County, but the entire State of California over the past five years. Just as impressive is the fact that the Bank has had no loan losses since inception more than five years ago – a claim very few banks across the nation can make.
As of June 30, 2009 the Bank’s Total Risk Based capital ratio of 17.93% was well in excess of the current regulatory definition of 10% for a well-capitalized institution. The Bank has never invested in preferred stock of any entity, including Freddie Mac or Fannie Mae, and as such its capital position is not impaired in any way.
The Bank’s actual capital ratios as of 6/30/09 are summarized as follows:
Well-Capitalized San Diego Trust Bank
Regulatory Standards As of 6/30/09
Leverage 5.00% 13.50%
Tier 1 Risk Based 6.00% 16.68%
Total Risk Based 10.00% 17.93%
San Diego Trust Bank did not apply for any Federal bail-out funds under the much maligned TARP program.
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 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.
For bank rating information please refer to www.bauerfinancial.com
Bank contact: Michael Perry
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.