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San Diego Trust’s Profit Streak Lasting 25 Consecutive Quarters

Even in this still down economy, some lenders continue racking up impressive results.

San Diego Trust Bank reported profits in the fourth quarter of $333,000, up 68 percent from the like quarter of 2009. It was the 25th consecutive quarter of profits for the bank that opened in late 2003.

For the full year, SDT reported net income of $959,000 compared with net profit of $632,000 for all of 2009.

In addition to breaking through $200 million in assets, total deposits at SDT rose 46 percent from 2009 to $171 million, while total assets grew 34 percent to $203 million.

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Loans declined 9 percent to $50 million as more borrowers decided to pay off their debts earlier.

“We had more people pre-paying their loans because they had the cash,” said Chief Executive Mike Perry. “Our actual number of loans increased but the dollar amount went down.”

SDT reported one loan of about $1.1 million on non-accrual, but that blemish may get back into performing status by March, Perry said. The personal loan is well secured with a residence recently appraised at $1.8 million.

SDT’s capital ratios all exceed levels to be considered well-capitalized with total risk-based capital at 22.51 percent, more than double the 10 percent standard.

The bank said its third office in Point Loma broke into the black within six months of opening.

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Pacific Trust Buys Another Branch: Pacific Trust Bank, the subsidiary of parent First PacTrust Bancorp Inc., is apparently building a larger footprint. Last month it obtained approval to open a branch in La Jolla, and recently it entered into an agreement to buy another branch in San Marcos from the Federal Deposit Insurance Corp. Both branches were previously owned by San Diego National Bank, and held total deposits of about $233 million.

It’s doubtful all those deposits remain following SDNB’s failure in 2009 and takeover by U.S. Bank, as there is always some deposit runoff when new banks take over branches.

Assuming Pacific Trust obtains all the regulatory approvals, the new offices will bring its full-service branch network to eight, including branches in Temecula and Riverside.

• • •

Sunrise Reports $10 Million Loss in 2010: Sunrise Bank, which has been operating with a consent order since April, reported a net loss for last year of $10.35 million, according to its call report filed with the Federal Deposit Insurance Corp.

The bank, mainly owned by Capitol Bancorp Ltd. of Lansing, Mich., merged four affiliate banks in the region in early 2010. At the end of the first quarter following that merger, Sunrise reported a net loss of $1.48 million.

Sunrise Chief Executive Officer Scott Andrews said $4.8 million of the net loss was the result of a non-cash write-off of goodwill that did not impact its capital.

Sunrise’s total assets at the end of last year were $231.8 million, while total loans were $183.6 million, and total deposits were $210.5 million.

The bank put aside $5.8 million into its loan loss reserves, bringing its total reserve balance to $7.8 million.

As of Dec. 31, Sunrise said it held $8.5 million in nonaccrual loans, and $3.48 million in foreclosed real estate. That meant it held nonperforming assets of 5.1 percent of total assets.

Sunrise’s capital ratios exceed the levels to be considered a well-capitalized bank but are not in compliance with the regulatory order’s mandates. Its total risk-based capital is 11.22 percent, below the 12 percent ratio required in the order.

Andrews said the FDIC has not taken any further action regarding the bank, and that it would reach compliance with the regulatory order this year.

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Nonlocal Banks Profitable Except One: Some of the largest banks doing business in San Diego had net profits last year except for Bank of America Corp., parent of Bank of America. BofA, the biggest bank in the nation, reported a net loss for last year of $2.23 billion, compared with a net profit in 2009 of $6.27 billion. Wells Fargo & Co., parent of Wells Fargo Bank, with 104 offices in the county, reported net profit of $12.4 billion for 2010, up from $12.3 billion in 2009. U.S. Bancorp, parent of U.S. Bank, reported net profit for the year of $3.33 billion, up from $1.8 billion in 2009.

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