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Security Business Bancorp Achieves 18% Loan Growth and Total Asset Growth of 10%

^{Published on 2009-01-27 10:14:49, Last Modified on 2009-01-27 10:16:41 - Market Wire}
 

SAN DIEGO--([ BUSINESS WIRE ])--Security Business Bancorp (OTCBB:SBBC) and its operating subsidiary, Security Business Bank of San Diego, today reported its unaudited 2008 fourth-quarter and annual financial results. As of December 31, the company grew loans to $174.8 million (a 17.7 percent growth year over year) and assets to $203.9 million (a 10.3 percent growth year over year). Also among the December 31^st results is an 85.0 percent core deposits to total deposit ratio.

"The growth of our balance sheet by more than 10 percent this year over last reinforces our positive and consistent financial performance despite the current state of the economy," said Paul Rodeno, president and CEO of Security Business Bancorp. "Our cash position remains strong. And we continue to be ‘well-capitalized,' which is the highest regulatory standard."

Fourth-quarter and annual financial highlights include:

• Total assets of $203.9 million, an increase over $184.9 million at December 31, 2007.
• Allowance for loan loss maintained at a healthy 1.60 percent, higher than many of the bank's peer group with nonperforming assets at 1.96 percent of loans at December 31, 2008.
• Quarterly operating net income decreased to $111,000 or $0.06 per diluted share from $452,000 or $0.24 for the same period in 2007 primarily due to higher credit loss provisions and margin compression (reductions in market interest rates placed downward pressure on net interest margin).
• Total deposits for December 31, 2008 were $153.4 million; demand deposit accounts amount to 38 percent of total deposits compared to 39 percent at December 31, 2007.
• Loans of $174.8 million show a gain of 18 percent from December 31, 2007 of $148.5 million.
• Operating net income for the year decreased to $676,000 or $0.37 per diluted share compared to $1.6 million or $0.86 for the year 2007 due to higher credit loss provisions and margin compression.

Limited investment exposure in Fannie Mae preferred stock led to a non-cash other-than-temporary impairment charge of $1.9 million recorded during 2008. The impairment is not part of the bank's regular operational performance. It has been excluded from the bank's operating results to enhance investor understanding of the organization's financial picture. Security Business Bank's investment in Fannie Mae stock represents less than one percent of the company's total assets.

Since its founding in 2002, Security Business Bank ([ www.securitybusinessbank.com ]) has built a reputation for providing its small and mid-sized business customers with financial innovation, access to management and superior client service. The bank has redefined the business banking experience through its "Executive at Every Level" program, which fosters local decision-making, employee empowerment and community specialization. Security Business Bank is an operating subsidiary of Security Business Bancorp, a bank holding company established in 2008 to support the bank's continued growth. Security Business Bank operates three San Diego locations including Downtown, Carmel Valley and Carlsbad offices.

Certain statements in this release, including statements regarding the anticipated development and expansion of the bank's business, and the intent, belief or current expectations of the bank, its directors or its officers, are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995).Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.