2009 was record growth year for San Diego Trust Bank

COAST CITIES — San Diego Trust Bank reported positive audited results for the fourth quarter as well as the full year ending Dec. 31, 2009.
The bank reported its 21st consecutive quarterly profit with record Q4 earnings up 77 percent from the comparable period of a year ago. Net earnings after-tax totaled $198,000 for the fourth quarter ending Dec. 31, 2009 compared to $112,000 for the same period last year.
For the 12 months ending Dec. 31, 2009, the bank reported pre-tax income of $1.02 million compared to $849,000 last year despite having to absorb more than a four-fold increase in FDIC insurance premiums and a special assessment levied against the entire industry earlier in the year.
The bank’s FDIC Insurance premium expense/assessment was $231,000 for the 12 months ending Dec. 31, 2009 compared to just $56,000 in the prior year. Net income after-tax increased more than 21 percent compared to the prior year and totaled $632,000 for the year ended Dec. 31, 2009. This marks the fifth consecutive yearly profit for San Diego Trust Bank going back to 2005.
“We are thrilled to be able to report to our loyal shareholders a meaningful increase in earnings this past year despite operating in the most challenging economic environment since the Great Depression,” said President and CEO Michael Perry. “This past year proved to be one of our strongest to date as individuals and businesses alike recognized the strength and stability of our institution and sought a ‘safe-haven’ amidst all the turmoil in the banking industry. That momentum continues to build as we head into 2010 and we are excited about the opportunities ahead.”
Total assets climbed to a record $152 million, up almost 36 percent from the prior year’s figures of $112 million. Total deposits also reached a new all-time high of $117 million as of Dec. 31, 2009, up 33 percent compared to $88 million a year ago. Core deposits (DDA and money market accounts) represented 84 percent of all deposits as of Dec. 31, 2009. The bank has never held any “brokered” deposits.
Gross loans totaled $54.9 million as of Dec. 31, 2009, compared to $60.8 million as of the same date in 2008, as demand for credit slowed noticeably due to the deteriorating macro-economic environment.
Asset quality continues to remain very strong with just one loan reported as “nonaccrual” as of Dec. 31, 2009. This particular credit is well-secured and as such, the bank does not foresee any meaningful loss potential.
As of Dec. 31, 2009, the bank’s total risk based capital of 20.13 percent was among the highest in the nation and more than twice 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 Dec. 31, 2009 are summarized as follows:

Well-Capitalized Standards San Diego Trust Bank

Tier 1 Leverage 5.00 percent 11.44 percent
Tier 1 Risk-Based 6.00 percent 18.87 percent
Total Risk-Based 10.00 percent 20.13 percent

San Diego Trust Bank did not apply for any taxpayer funded bailout funds under the much maligned TARP program. The bank’s liquidity position has never been stronger with more than $89.4 million in cash and securities available for sale as of Dec. 31, 2009.
For more information, visit www.sandiegotrust.com or call (619) 525-1700.

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