Company Executives Have No Desire to Dilute Their Loyal Shareholders
SAN DIEGO--(Business Wire)--
San Diego Trust Bank (OTCBB: SDBK), one of the most consistently profitable
banks in the entire country over the past several years, announced today that it
does not intend to apply for funds available through the Capital Purchase
Program, part of the federal government’s now infamous Troubled Assets Relief
Program, commonly referred to as “TARP”.
San Diego Trust is one of the strongest capitalized financial institutions in
all of Southern California, let alone, San Diego County. In fact, its capital
ratios will still surpass those of most financial institutions in the region,
even after they have received a capital injection from the government. As shown
below, the Bank’s capital ratios by most measures, are almost three times that
needed to be considered “well-capitalized” by regulatory definition.
The Bank’s actual capital ratios as of 9/30/08 are summarized as follows:
Well-Capitalized San Diego Trust Bank
Regulatory Standards As of 9/30/08
Leverage 5.00% 14.4%
Tier 1 Risk Based 6.00% 17.8%
Total Risk Based 10.00% 18.9%
“After carefully studying all aspects of the program, our Board concluded that
it was not in the best interest of our shareholders to participate,” commented
Michael Perry, Chairman, President and CEO. “Given that our Bank is so
well-capitalized, why would we willingly agree to take taxpayer funds at the
expense of our current shareholder base?” he added. “While it might make sense
for other banks to participate, we simply don’t need the money,” Perry
concluded.
Unlike many banks across the nation, San Diego Trust has been able to
successfully avoid many of the pitfalls currently wreaking havoc on the
financial services industry. The Bank, which recently completed its fifth year
of operation, has emerged as one of the strongest performing banks in the
region, recording sixteen consecutive quarters of profitability. Furthermore,
since inception, the Bank has not incurred a loan loss of any size and does not
have a single past due loan in its portfolio.
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
Michael Perry, 619-525-1727
mperry@sandiegotrust.com
Copyright Business Wire 2008
