San Diego Trust Bank Continues to Post Strong Results
Bank Reports 16th Consecutive Quarterly Profit Year to Date Earnings Top $400 Thousand Asset Quality Remains Exceptional with Zero Past Due Loans
SAN DIEGO, Oct 15, 2008 (BUSINESS WIRE) -- San Diego Trust Bank (OTCBB:SDBK) known for its consistently solid performance, announced another strong quarterly report for the period ended September 30, 2008. Despite the unprecedented turmoil in the financial markets and the rapidly deteriorating economic picture, San Diego Trust has successfully managed to avoid the many pitfalls plaguing the industry and continues to outperform.
The Bank recorded its 16th consecutive quarter of profitability and has generated net earnings after tax of $411 thousand year to date. San Diego Trust now ranks as one of the most consistently profitable banks in not just the County, but the entire State. Just as impressive is the fact that the Bank reported zero past due loans as of 9/30/08 and has had no charge offs since inception -- a claim very few banks across the nation can make these days.
"I am pleased to be able to report to our loyal shareholders that we continue to generate meaningful earnings despite the unprecedented financial crisis gripping our economy," commented Michael Perry, Chairman, President and CEO. "Our disciplined approach since day one has enabled our Bank to thrive in a variety of economic conditions and we continue to gain market share as other market participants struggle to survive," Perry added.
The Bank earned $111 thousand for the quarter which was well ahead of plan. Year to date earnings, as expected, are below last years results due to the increased overhead associated with the Bank's new office in Encinitas coupled with lower yields realized on earning assets. Yields have fallen over the past twelve months as the Federal Reserve has aggressively cut rates by 375 basis points in a failed attempt to avoid a worldwide financial crisis.
Total Assets stood at $106.9 million as of 9/30/08 representing an increase of 7.9% as compared to assets of $99 million a year ago. Total Deposits increased 5.5% to $88.3 million as of 9/30/08 with "core deposits" (non-interest bearing and money market accounts) now representing 82% of all deposits. The Bank has no brokered deposits.
As of September 30, 2008 the Bank's Total Risk Based capital ratio of 18.9% 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.
Total loans equaled $63.8 million as of 9/30/08 compared to $69.8 million in the same period last year. The Bank has strategically reduced its exposure to certain sectors of the real estate market over the past twenty four months given the heightened levels of risk present in the market. The Bank's loan to deposit ratio of 72% results in a significant amount of excess liquidity available to fund operations and lend to a cash-strapped market.
Asset quality continues to remain exceptional at the Bank. As of 9/30/08 the Bank did not report a single past due loan and has not experienced a loan loss of any size since inception. 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 directly by the continued turmoil in the residential real estate market.
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)
Sept. 30, 2008 Sept. 30, 2007
Balance Sheet
Gross Loans $ 63,756 $ 69,848
Total Deposits $ 88,319 $ 83,715
Total Assets $ 106,855 $ 99,056
Total Shareholder's Equity $ 15,111 $ 14,572
For the Nine Months Ended:
Income Statement
Net Interest Income $ 3,680 $ 3,596
Non-Interest Income 224 169
Non-Interest Expense 3,230 2,615
Income Before Taxes $ 674 $ 1,150
Income Tax Expense 263 489
Net Income $ 411 $ 661
Regulatory Ratios
Total Capital / Risk Wtd. Assets: 18.86 % 17.88 %
Required to be Well Capitalized: 10.00 % 10.00 %
SOURCE: San Diego Trust Bank
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