SAN DIEGO–San Diego Trust Bank reported its audited results for the 4th quarter as well as the full year ending December 31, 2009 today. The Bank reported its 21st consecutive quarterly profit with record Q4 earnings up 77% from the comparable period of a year ago. Net earnings after-tax totaled $198 thousand for the fourth quarter ending December 31, 2009 compared to $112 thousand for the same period last year.
For the twelve months ending December 31, 2009, the Bank reported pre-tax income of $1.02 million compared to $849 thousand last year despite having to absorb more than a four-fold increase in FDIC insurance premiums and a special assessment which was levied against the entire industry earlier in the year.
The Bank’s FDIC Insurance premium expense / assessment was $231 thousand for the twelve months ending 12/31/09 compared to just $56 thousand in the prior year. Net Income after-tax increased more than 21% compared to the prior year and totaled $632 thousand for the year ended 12/31/09. This marks the 5th consecutive yearly profit for San Diego Trust Bank going back to 2005 – a feat matched by very few other banks across the nation.
“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,” commented Michael Perry, Chairman, President and CEO. “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,” Perry concluded.
Total Assets climbed to a record $152 million, up almost 36% from the prior year’s figures of $112 million. Total Deposits also reached a new all-time high of $117 million as of 12/31/09, up 33% compared to $88 million a year ago. Core deposits (DDA and money market accounts) represented 84% of all deposits as of 12/31/09. The Bank has never held any “brokered” deposits.
Gross Loans totaled $54.9 million as of 12/31/09 compared to $60.8 million as of 12/31/08 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 “non-accrual” as of 12/31/09. This particular credit is well-secured and as such, the Bank does not foresee any meaningful loss potential.
As of December 31, 2009 the Bank’s Total Risk Based Capital of 20.13% 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.
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 $89.4 million in cash and securities available for sale as of December 31, 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.