Stellar Business Bank Announces Continued Asset Growth in 3rd Quarter 2008

COVINA, Calif.--(BUSINESS WIRE)--Stellar Business Bank (OTCBB: SLRB.OB) reported results for the third quarter of 2008. The Bank opened for business on April 9, 2007. As of September 30, 2008, the Bank reported total assets of $88.1 million, a 37% increase from the prior quarter. Total deposits were $67.9 million, a 57% increase from the prior quarter, of which $8.1 million were non-interest bearing, with interest bearing deposits totaling $59.8 million. As of September 30, 2008, net loans totaled $29.4 million, an increase of 48% from the prior quarter, with an additional $2.0 million in unfunded loan commitments and no residential “sub prime” mortgage loans.

From the date of organization to September 30, 2008, the Bank reported a net loss of $3.8 million or ($1.67) per share of common stock, which includes a loan loss provision of $0.5 million. These numbers also reflect the impact of accounting rules that require companies to include stock compensation as an expense, and pre-opening expenses of $0.8 million.

“We are pleased with the growth of Stellar Business Bank through September 30, 2008, with total asset growth of 285% since our initial capitalization and opening on April 9, 2007,” stated Timothy P. Walbridge, President & CEO. “Deposit growth and loan generation have continued on a solid and sustained pace, with a continuing emphasis on asset quality in this current economic environment. We recognize that these are challenging times for many of our customers. We want you, our neighbors, customers, prospects and friends, to know that your Bank is here to assist you with all of your banking needs. We hear about ‘the credit crunch’ and lack of availability in the credit markets. That is not the case at your Bank, Stellar Business Bank. We are well-capitalized, liquid, and look forward to the opportunity to consider your needs in structuring creative, prudent and timely financing options.”

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
626.214.1760