San Diego Private Bank Reports Third Quarter Earnings

CORONADO, CA--(Marketwired - Oct 23, 2014) -  San Diego Private Bank (OTCQB: SDPB) today announced the bank's condition and results of operations for the third quarter 2014. Based on unaudited financial results for the quarter ended September 30, 2014, San Diego Private Bank reported net profit of $723,000 for the quarter, up from quarter ended September 30, 2013 of $456,000, an increase of 58.6% and an increase of 21.7% over the prior quarter.

As of September 30, 2014 total assets were $343.4 million, an increase of 5.6% over the prior year. Net loans ended the quarter at $277.4 million, up 5.7% for the quarter and 31.2 % above the prior year. Total deposits were $282.4 million, up 1.4% for the quarter and 6.8% over the prior year. Shareholder Equity was $50.6 million. The bank maintained very strong capital ratios, finishing the quarter with a Tier 1 Leverage Capital Ratio of 13.93% and a Total Risk Weighted Capital Ratio of 17.26%. Net Interest Margin was for the quarter was 4.36%, up from 4.11% for the prior quarter.

Maria P. Kunac, President and Chief Executive Officer of San Diego Private Bank, stated, "Loan volume continued to grow as we expanded our commercial real estate and construction lending businesses. Increased utilization of liquidity resulted in higher margins. Interest expense as well as operating expenses declined for the quarter. This resulted in improved earnings. Credit quality remained excellent and capital ratios remained well above all regulatory well-capitalized measures. We maintained a 5-Star rating for the 23rd consecutive quarter by Bauer Financial, the premier independent bank rating and research firm in the nation. A 5-Star rating implies that San Diego Private Bank is considered one of the strongest banking institutions in the country.

"Our relocated Downtown San Diego branch got off to a quick start with excellent deposit growth based on providing clients with Distinctly Different and superior personalized service. Loans generated at the branch grew by offering customized funding solutions to commercial real estate investors, high net worth individuals and professional firms," Ms. Kunac added.

San Diego Private Bank also offers various portfolio and government guaranteed programs, including SBA and cross-border Export-Import Bank programs. San Diego Private Bank is a SBA Preferred Lender.

San Diego Private Bank Balance Sheets
(Unaudited - in thousands)
				September 30, 2014			September 30, 2013
Assets
Cash and Cash Equivalents				$	33,416		$	76,982
Investments					20,403			25,969
Loans, Net					277,417			211,447
Premises, Equipment and Other Assets					12,183			10,919
		Total Assets			343,419			325,317
Liabilities and Shareholders' Equity
Demand Deposits					101,300			99,285
Interest Bearing Deposits					181,699			165,238
		Total Deposits			282,999			264,523
FHLB Advances / Borrowings					7,500			11,876
Other Liabilities					2,338			2,500
Shareholders' Equity					50,582			46,418
		Total Liabilities and Shareholders' Equity		$	343,419		$	325,317

San Diego Private Bank
Income Statements
(Unaudited - in thousands)
				Three months ended September 30, 2014			Nine months ended September 30, 2014				Three months ended September 30, 2013			Nine months ended September 30, 2013
Interest Income
Interest Income				$	3,859		$	11,033			$	3,448		$	8,499
Interest Expense					310			928				318			921
		Net Interest Income			3,549			10,105				3,130			7,578
Provision for Loan Losses					151			566				374			614
		Net Interest Income after Provision for Loan Losses			3,398			9,539				2,756			6,964
Other Income					238			923				423			1,258
Operating Expenses					2,421			7,420				2,386			6,332
		Operating Income			1,215			3,042				793			1,890
Income Taxes					492			1,252				337			858
		Net Earnings		$	723		$	1,790			$	456		$	1,032
Selected Ratios:
Earnings Per Share				$	0.18		$	0.44			$	0.11		$	0.30
(Weighted Average Shares)
Tangible Book Value Per Share							$	12.14						$	11.19
Tier 1 Leverage Ratio								13.93	%						13.16	%
Total Risk Based Capital Ratio								17.26	%						19.29	%
Asset Quality
(Non-Performing Assets + 90 Days Past Due Accruing) divided by (Equity + Allowance for Loan Losses)								1.96	%						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 4,089,635.

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]