San Diego Private Bank Reports Increased Fourth Quarter Earnings

San Diego Private Bank Reports Increased Fourth Quarter Earnings
  
 

CORONADO, CA--(Marketwired - Jan 31, 2014) - San Diego Private Bank (OTCQB: SDPB) today announced the bank's condition and results of operations for the fourth quarter and full year 2013. This is the third quarterly report of the combined Coronado First Bank and San Diego Private Bank since the merger was completed on April 2, 2013.

Based on unaudited financial results for the year ended December 31, 2013, San Diego Private Bank reported net profit of $3,125,000, which included the effects of a fourth-quarter adjustment for one-time increase in recognition of release of deferred tax reserve and resultant increase in bargain purchase gain in an amount of $1,132,000. Without this gain, net income for the year would have been $1,993,000. Fourth quarter net profit was $2,093,000. Fourth quarter profit with the bargain purchase gain adjustment and an associated tax accrual adjustment would have been $814,000, up 79% from $456,000 for the third quarter. 

As of December 31, 2013 total assets were $324,412,000. Net loans after allowance for loan losses grew 8.6% during the fourth quarter to $229,729,000. Total deposits were $261,651,000 and Shareholder Equity grew to $48,611,000. The bank maintained very strong capital ratios, finishing the quarter with a Tier 1 Leverage Capital Ratio of 14.15% and a Total Risk Weighted Capital Ratio of 18.57%. Loan quality remained strong with a Texas Ratio of 1.64%.

Maria P. Kunac, President and Chief Executive Officer of San Diego Private Bank, stated, "We are pleased with our progress during the quarter. The growth in loans increased net interest income, we were able to grow core deposit and lower the overall cost of funds, non-interest income increased and operating expenses declined. We expect to maintain this momentum into next year."

"During the quarter all departments of the bank grew. The core banking and real estate businesses expanded, the Newport Private Bank office continued its growth and the Export/Import division established earlier in 2013 showed strength. In addition, the SBA division became the third largest SBA 7(a) loan provider in San Diego County with its Preferred Lender status."

San Diego Private Bank
Balance Sheets
(Unaudited - in thousands)
		December 31, 2013			September 30, 2013
Assets
Cash and Cash Equivalents		$	58,578		$	76,982
Investments			23,654			25,969
Loans, Net			229,729			211,447
Premises, Equipment and Other Assets			12,451			10,919
	Total Assets		324,412			325,317
Liabilities and Shareholders' Equity
Demand Deposits			91,885			99,285
Interest Bearing Deposits			169,766			165,238
	Total Deposits		261,651			264,523
FHLB Advances / Borrowings			11,844			11,876
Other Liabilities			2,306			2,500
Shareholders' Equity			48,611			46,418
	Total Liabilities and Shareholders' Equity	$	324,412		$	325,317

San Diego Private Bank
Statements of Income
(Unaudited - in thousands)
		Year ended Dec 31, 2013			Three months ended Dec 31, 2013				Three months ended Sep 30, 2013
Interest Income
Interest Income		$	12,100		$	3,601			$	3,448
Interest Expense			1,221			300				318
	Net Interest Income		10,879			3,301				3,130
Provision for Loan Losses			735			121				374
	Net Interest Income after Provision for Loan Losses		10,144			3,180				2,756
Other Income			2,853			1,595				423
Operating Expenses			8,577			2,245				2,386
	Operating Income		4,420			2,530				793
Income Taxes			1,295			437				337
	Net Earnings	$	3,125		$	2,093			$	456
Selected Ratios:
Earnings Per Share		$	0.81		$	0.51			$	0.11
(Weighted Average Shares)
Tangible Book Value Per Share					$	11.67			$	11.20
Tier 1 Leverage Ratio						14.15	%			13.16	%
Total Risk Based Capital Ratio						18.57	%			19.29	%
Asset Quality
(Non-Performing Assets + 90 Days Past Due Accruing) divided by (Equity + Allowance for Loan Losses)						1.64	%			2.99	%

San Diego Private Bank is publicly traded on the Over-the-Counter Bulletin Board (OTCQB) under the ticker symbol: "SDPB," with total shares outstanding of 4,089,384.

This press release may include forward looking statements that involve inherent risks and uncertainties. San Diego Private Bank cautions readers that a number of important factors could cause actual results to differ materially from those in the forward‐looking statements. These factors include economic conditions and competition in the geographic and business areas in which San Diego Private Bank operates, our ability to successfully integrate the operations of merged banks, inflation, fluctuations in interest rates, legislation and governmental regulation. You should not place undue reliance on forward‐looking statements and we undertake no obligation to update those statements whether as a result of changes in underlying factors, new information, future events or otherwise.

Investor Relations Contact Maria P. Kunac President and Chief Executive Officer San Diego Private Bank [phone]