San Diego Trust Bank Announces Record Earnings.

SAN DIEGO -- Year-to-Date Net Income More than Triples Over Prior Year

San Diego Trust Bank (OTCBB:SDBK) announced record earnings for the quarter ending 6/30/06 as well as the first six months of the year. Net Income for the second quarter increased significantly to $335 thousand compared to $142 thousand for the same period last year. Earnings for the first six months of the year were also up sharply totaling $648 thousand, more than three times last year's results for the same period. By comparison, the Bank recorded profits of $204 thousand for the first six months of 2005.

The Company's strong earnings for the first six months of the year were generated in spite of a pre-tax charge of $108 thousand due to the implementation of FAS 123R which requires companies to now record compensation expense related to stock options. Prior to the adoption of FAS 123R on January 1, 2006, this non-cash expense was a footnote to the financial statements and as such, no comparable expense was recorded in prior years.

"We could not be more pleased with the efforts of the entire team and the resulting earnings performance of the Bank during the first half of this year," exclaimed Michael Perry, President and CEO. "It's exciting to be able to report to our valued shareholders that we have recorded more income in the first six months of this year than we generated in all of 2005," added Perry. "To achieve such results in an increasingly competitive market environment is a testament to the dedication of our staff and the viability of our long-term strategic plan," he further commented.

The Bank reported total assets of $81.6 million as of 6/30/06 compared to $72.2 million as of 6/30/05. Total deposits, fueled primarily by growth in non-interest checking and money market accounts, increased to $68.7 million as of 6/30/06 compared to $61.4 million as of 6/30/05. Likewise, the Company's total loans increased to $57.0 million as of 6/30/06 compared to $46.4 million as of 6/30/05.

Asset quality has remained impeccable at the Bank, with not a single loan reported as past due or delinquent since inception. The Bank is considered "well-capitalized" by regulatory definition and has more than sufficient liquidity to fund future growth.

Total revenues for the Company increased substantially, totaling $2.8 million for the six months ending 6/30/06. This represents a significant increase compared to the $1.7 million reported for the same period last year. The Bank turned profitable after only three full quarters of operation and has reported increased earnings each quarter thereafter. "Our disciplined approach of developing quality, core business, with the 'Best of San Diego' is translating into superior performance on the earnings front without taking undue risk," commented Larry Willette, Chairman of the Board. "We will continue to move forward diligently with the implementation of our plan and are excited about the opportunities ahead of us," he added.

Founded by several of San Diego's most respected banking veterans and business leaders, San Diego Trust Bank is dedicated to the timeless principles of superior local market knowledge, unparalleled service, and building exceptional shareholder value. With over three hundred years of experience in banking San Diegans, timely local decision making, and one of the most comprehensive product lines found in the market today, San Diego Trust Bank delivers "Performance You Can Trust."

For more information on the Bank, please visit www.sandiegotrust.com or call [phone].

FORWARD-LOOKING STATEMENTS 

Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, loan production, balance sheet management, expanded net interest margin, the ability to control costs and expenses, interest rate changes and financial policies of the United States government and general economic conditions. The Bank disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any forward-looking statements contained herein to reflect future events or developments.

SAN DIEGO TRUST BANK
SELECTED FINANCIAL DATA - UNAUDITED
(All figures in thousands)

For the Six Months Ending:  June 30, 2006  June 30, 2005  % Increase
                            -------------  -------------  ----------

Balance Sheet
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Total Loans                    $56,949        $46,413        + 23%
Total Deposits                 $68,660        $61,361        + 12%
Total Assets                   $81,561        $72,208        + 13%

Total Shareholder's Equity     $12,685        $10,694

Income Statement
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Gross Revenue                  $ 2,777        $ 1,712        + 62%
Net Income                     $   648        $   204        + 218%