SAN DIEGO TRUST BANK Q3 EARNINGS CLIMB 48% OVER PRIOR YEAR
Bank Posts Record 20th Consecutive Quarterly Profit
Total Assets Grow 22% and Reach Record High of $130 Million
SAN DIEGO – San Diego Trust Bank (OTCBB: SDBK) known for its consistently solid performance, reported its 20th consecutive quarterly profit with Q3 earnings up 48% from the comparable period of a year ago. Net earnings after-tax totaled $166 thousand for the quarter ending September 30, 2009 compared to $112 thousand for the same period last year.
The Bank reported year-to-date Net Income of $434 thousand compared to $412 thousand last year despite having to absorb more than a three-fold increase in FDIC insurance premiums and a special assessment which was levied against the entire industry earlier this year. The Bank’s FDIC Insurance premium expense was $136 thousand for the nine months ending 9/30/09 compared to just $43 thousand for the comparable period last year.
“The Bank’s ability to report increased earnings despite the significant increase in deposit insurance premiums this past year is a testament to the strength of our core earnings and the efforts of our entire team,” commented Michael Perry, Chairman, President and CEO. “We continue to be on track for one of our best years ever as individuals and businesses alike recognize the strength and stability of our institution and seek a “safe-haven” in the continued turmoil in the banking industry,” Perry continued.
Total Assets stood at a record $130.8 million, up 22% from the prior year’s figures. Total Deposits also reached a new all-time high of $109 million as of 9/30/09, compared to $88 million a year ago. Core deposits (DDA and money market accounts) represented 85% of all deposits as of 9/30/09. The Bank has never held any “brokered” deposits.
As of September 30, 2009 the Bank’s Tier 1 Risk Based capital ratio of 20.15% was among the highest in the nation and more than three times the amount needed to be considered “well-capitalized” by regulatory definition. 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 9/30/09 are summarized as follows:
Well-Capitalized San Diego Trust Bank
Regulatory Standards As of 9/30/09
Tier 1 Leverage 5.00% 12.74%
Tier 1 Risk Based 6.00% 20.15%
Total Risk Based 10.00% 21.41%
San Diego Trust Bank did not apply for any taxpayer funded bail-out funds under the much maligned TARP program. The Bank’s liquidity position has never been stronger with more than $71 million in cash and securities available for sale as of September 30, 2009.
“Our exceptionally strong capital position, excellent liquidity, and consistent earnings have enabled us to gain valuable market share as more banks struggle to survive, consolidate their operations, or fail altogether,” said Perry. “We truly appreciate the confidence so many San Diegans have shown in the Bank and we will continue to put forth our very best on their behalf,” 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 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
Chairman, President and CEO
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.