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San Diego Trust Bank Earnings Soar 52% on Record Growth

^{Published on 2011-01-25 05:35:26 - Market Wire}
 

SAN DIEGO--([ BUSINESS WIRE ])--San Diego Trust Bank (OTCBB: SDBK) known for its consistently strong performance, reported its unaudited results for the 4th quarter as well as the full year ended December 31, 2010. The Bank reported its 25th consecutive quarterly profit with record Q4 earnings up 68% from the comparable period of a year ago. Net earnings after-tax totaled $333 thousand for the quarter ended December 31, 2010 compared to $198 thousand for the same period last year.

"Individuals and businesses alike have recognized the importance of partnering with a strong, profitable, and well-capitalized institution that has the ability and capacity to take care of their needs"

For the twelve months ended December 31, 2010, the Bank reported net income of $959 thousand compared to $632 thousand in the previous year despite all the costs incurred in opening their third full-service branch, which is located in the Pt. Loma community of San Diego. This represented a 52% increase over prior year results.

The Banka™s earnings were 100% acore earningsa and did not include any release of loan loss reserves back into income.

Selected highlights for the fourth quarter 2010 and full year:

• Total Deposits increased more than $54 Million and totaled $171 Million as of 12/31/10, an increase of more than 46% from the prior year;
• Liquidity, defined as cash, due from banks, and investment securities, was a record $144 Million as of 12/31/10;
• Q4 Earnings represented the Banka™s 25th Consecutive Quarterly Profit a" a feat unmatched by any other San Diego community bank;
• New Pt. Loma Office turned profitable within 6 months of opening;
• Designated a5-Stara Institution by Bauer Financial for the 16^th consecutive quarter.

aWe are delighted to be able to report such strong results to our loyal shareholders,a commented Michael Perry, Chairman, President and CEO. aThis past year proved to be our best yet, with the Bank recording its 25^th consecutive quarter of profitability, assets eclipsing the $200 million mark, and earnings increasing by more than 50% over the prior year,a stated Perry. aWe have not waivered from our original strategic plan and remain committed to responsibly building the finest community bank in San Diego. We recognize and appreciate the tremendous support so many San Diegana™s throughout the county have shown, and will continue to put forth our very best on their behalf,a he concluded.

Total Assets climbed to a record $203 million, up 33.7% from the prior yeara™s figure of $152 million. Total Deposits climbed $54 million and also reached a new all-time high of $171 million as of 12/31/10, up 46% compared to $117 million a year ago. Core deposits (DDA and money market accounts) accounted for 91% of all deposits as of 12/31/10. The Bank has never held any abrokereda deposits.

Gross Loans totaled $50.0 million as of 12/31/10 compared to $54.9 million as of 12/31/09 as demand for credit remained tepid due to the sluggish economic environment. Asset quality continues to remain very strong with just one loan reported as anon-accruala as of 12/31/10. This particular credit is well-secured and as such, the Bank does not foresee any meaningful loss potential.

As of December 31, 2010 the Banka™s Total Risk Based Capital of 22.51% was among the highest in the nation, and more than twice the amount needed to be considered awell-capitalizeda by regulatory definition. San Diego Trust Bank has never applied for any government assistance, including the now infamous TARP program.

The Banka™s actual capital ratios as of December 31, 2010 are summarized as follows:

aIndividuals and businesses alike have recognized the importance of partnering with a strong, profitable, and well-capitalized institution that has the ability and capacity to take care of their needs,a Perry added. aThe fact that our Pt. Loma office has been so well received and turned profitable in less than six months is just one example of this trend,a he continued. aWe are uniquely positioned for continued success in all the markets we serve and are excited about the opportunities in front of us,a Perry concluded.

Founded by several of San Diegoa™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 aPerformance You Can Trust.a

San Diego Trust Bank common stock is traded on the Over-the-Counter Exchange under the symbol aSDBKa. For information on the companya™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 ]

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.