Security Business Bancorp (OTCBB:SBBC) and its operating subsidiary, Security Business Bank of San Diego, today reported its unaudited 2011 fourth-quarter and annual financial results. As of December 31, the company grew loans to $182.0 million (a 5.1 percent rise in growth year over year) and assets to $233.4 million (a 3.8 percent annual increase). Also among the December 31st results is an 88.3 percent core deposits to total deposit ratio. Of the bank's total deposits, 48.6 percent are non-interest bearing deposits.

"The growth of our balance sheet this year over last reinforces our consistent financial performance against a backdrop of economic challenge," said Paul Rodeno, president and CEO of Security Business Bancorp. "Because we've maintained strong capital levels well above the regulatory 'well-capitalized' minimums and our liquidity position remains strong, we are poised for organic expansion as small- and mid-sized companies gear up for growth."

"Additionally, during the final quarter of 2011 we were named top lending partner among medium banks by the SBA San Diego District Office for having made the largest number and dollar volume of SBA 7(a) loans. This is the third consecutive year we have received this award, a testament to our expert small business lending staff as well as to our overall commitment to helping small and medium-sized entrepreneurial companies succeed," explained Rodeno.

Fourth-quarter and annual financial results include:

  • Total assets of $233.4 million, a 3.8% increase over $224.9 million at December 31, 2010.
  • Strong core deposits of $159.5 million or 88.3% of total deposits
  • Total loans of $182.0 million, a 5.1% increase over $173.2 million at December 31, 2010.
  • Allowance for loan loss maintained at 1.75% of loans held for investment. Non-performing assets to total assets have significantly decreased to 0.95% compared with 3.58% at December 31, 2010.
  • A risk-based capital ratio of 15.7% compared to 14.8% in fourth-quarter 2010.
  • Quarterly net income was $141,000 compared to a net loss of $765,000 for the same period in 2010.
  • Net income for the year was $181,000 compared to a net loss of $722,000 for the same period in 2010.

In its 10-year history, Security Business Bank (www.securitybusinessbank.com) has built a reputation for providing its small and mid-sized business customers with financial innovation, access to management and superior client service. The bank has redefined the business banking experience through its "Executive at Every Level" program, which fosters local decision-making, employee empowerment and community specialization. Security Business Bank is an operating subsidiary of Security Business Bancorp, a bank holding company established in 2008 to support the bank's continued growth. Security Business Bank operates four San Diego locations including Downtown, Carmel Valley, Carlsbad and Escondido offices.

Certain statements in this release, including statements regarding the anticipated development and expansion of the bank's business, and the intent, belief or current expectations of the bank, its directors or its officers, are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995).Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.

 
Security Business Bancorp
Financial Highlights (Unaudited)
December 31, 2011
(Amounts in thousands)
 
        As of December 31,
2011           2010
Balance Sheet Results:
 
Total Assets $ 233,414 $ 224,858
Loans Held for Investment $ 159,767 $ 154,330
Loans Held for Sale $ 22,215   $ 18,828  
Total Loans $ 181,981 $ 173,158
Allowance for Loan Loss (2,788 ) (3,353 )
Core Deposits $ 159,539 $ 178,688
Total Shareholders' Equity $ 28,520 $ 25,869
 
Loans to Deposits 100.8 % 93.7 %
Core Deposits to Total Deposits 88.3 % 96.7 %
Allowance for Loan Losses to Loans 1.75 % 2.17 %
Equity to Assets 12.2 % 11.5 %
Total risk-based capital ratio 15.7 % 14.8 %
Ending Book Value per Share $ 15.98 $ 14.51
Ending Tangible Book Value per Share $ 10.97 $ 11.25
 
4th Quarter GAAP Results
 
Net Interest Income $ 2,410 $ 2,338
Provision for Loan Loss 300 1,485
Non-interest Income 231 256
Non-interest Expense   2,118     2,447  
Income (Loss) Before Taxes $ 223 ($1,337 )
Income Tax Expense (Benefit)   82     (572 )
Net Income (Loss) $ 141     ($765 )
Preferred Stock Dividends   42     79  
Net Income (Loss) Applicable to Common Shareholders $ 99     ($844 )
 
Return on Average Assets 0.24 % -1.32 %
Return on Average Equity 2.01 % -11.63 %
Return on Average Common Equity 2.90 % -14.91 %
Net Interest Margin 4.34 % 4.28 %
Efficiency Ratio 80.2 % 94.3 %
Net Income per Share - Basic $ 0.06 ($0.47 )
Net Income per Share - Diluted $ 0.06 ($0.47 )
Ending Shares Outstanding 1,785,031 1,783,468
 
Year-to-Date GAAP Results
 
Net Interest Income $ 9,485 $ 8,633
Provision for loan loss 1,960 2,750
Non-interest Income 1,394 955
Non-interest Expense   8,681     8,105  
Income (Loss) Before Taxes $ 238 ($1,267 )
Income Tax Expense (Benefit)   57     (545 )
Net Income (Loss) $ 181     ($722 )
Preferred Stock Dividends   252     316  
Net Income (Loss) Applicable to Common Shareholders   ($71 )   ($1,038 )
 
Return on Average Assets 0.08 % -0.34 %
Return on Average Equity 0.67 % -2.71 %
Return on Average Common Equity 0.92 % -3.47 %
Net Interest Margin 4.23 % 4.30 %
Efficiency Ratio 79.8 % 84.5 %
Net Income per Share - Basic ($0.04 ) ($0.58 )
Net Income per Share - Diluted ($0.04 ) ($0.58 )
Ending Shares Outstanding 1,785,031 1,783,468

Security Business Bancorp
Paul Rodeno, 760-448-8310
prodeno@securitybusinessbank.com
or
Melissa Dennis, 760-930-8973
melissa@teamoutsmart.com