Stellar Business Bank Announces First Quarter Results

COVINA, Calif.--(BUSINESS WIRE)--Stellar Business Bank (OTC Bulletin Board: SLRB.OB) announced its first quarter 2009 financial results. As of March 31, 2009, the Bank reported total assets of $110.9 million, total deposits of $79.1 million and net total loans of $30.4 million, which represents an increase of 100%, 135% and 79%, respectively, from the first quarter of 2008, with an additional $4.3 million in unfunded loan commitments, with no past due or non-performing loans, and no residential “sub prime” mortgage loans.

The Bank reported unaudited year-to-date income of $184,000 or $0.08 basic earnings per share, which includes a gain on sale of investment securities of $819,000 and a loan loss provision of $148,000. This is compared to a net loss of $562,000 or $.25 basic loss per share in the same fiscal period last year, which includes a loan loss reserve provision of $82,682. These numbers also reflect the impact of accounting rules that require companies to include stock compensation as an expense.

“While we are pleased to announce our first profitable quarter, achieved in just under two years of operations, we acknowledge the impact of a one-time gain on the sale of securities and the continuing challenge to achieve sustainable, ongoing operational profitability,” stated Timothy P. Walbridge, President & CEO. “To that end, we continue to make strategic investments in products and personnel in order to take advantage of obtainable loan and deposit gathering opportunities in 2009 and beyond. More specifically, we recently established a Small Business Administration Department staffed with seasoned SBA lenders in order to take advantage of attractive programs, rates, guarantees and fee waivers established under the recently signed stimulus package. In addition, we have hired a very experienced, long-established and highly respected banking professional from a local competitor, who is expected to contribute significantly to our core funding opportunities. Finally, we continue to explore additional products and services specifically geared to providing the level of profitability and customer service essential to maintaining our reputation as your local community Bank of choice.

“We believe we are strategically positioned to take advantage of developing market opportunities, including conservatively-underwritten and profitable niche lending opportunities and expansion into more sophisticated cash management and IT-based product and service offerings. Our goal and focus is to continue to make strategic investments in product and service offerings whose sole purpose is to achieve profitable operations, enhance shareholder value, and maintain our reputation for quality and professionalism.”

The numbers in this press release are unaudited. Certain statements in this press release, including statements regarding the anticipated development and expansion of Stellar Business 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. These risks and uncertainties include, but are not limited to, risks related to the local and national economy, the Bank’s performance, including its ability to generate loan and deposit growth, changes in interest rates, regulatory matters and those discussed in filings by the Bank with the Federal Deposit Insurance Corporation. Member FDIC

Stellar Business Bank
Timothy P. Walbridge,
President & CEO
626-214-3040