STATE BANK CORP. LAKE HAVASU CITY, Ariz., Jan. 27, 2015 (GLOBE NEWSWIRE) -- State Bank Corp. (OTCBB:SBAZ) ("Company"), the holding company for Mohave State Bank ("Bank"), today announced net income of $517,000, or $0.09 per diluted share, for the quarter ended December 31, 2014, as compared to net income of $454,000, or $0.08 per diluted share, for the same period of 2013. For the year ended ended December 31, 2014, the Company reported net income of $5.40 million, or $0.92 per diluted share, as compared to a net income of $1.54 million, or $0.26 per diluted share, for 2013.
Fourth Quarter and 2014 Highlights include:
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The Bank reported $324,000 in gains from the sale of SBA loans in the fourth quarter. For the year, the Bank generated $757,000 in gross gains from its government guaranteed lending activity.
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Net interest income increased by $184,000, or 6.9 percent, as the Bank added another $4.9 million in loan growth.
- Nonperforming assets were reduced by another $2.4 million, or 14.0 percent, to $14.8 million as the Bank continued to sell other real estate owned.
"We ended 2014 with another solid quarter of progress. The Bank is starting to see loan demand for the first time in years and problem assets continue to moderate," commented Brian M. Riley, President & CEO.
The Company provided $75,000 to its loss reserves in the fourth quarter to bring the 2014 total to $695,000. Net credit losses were $313,000 in the fourth quarter and $1.36 million in 2014. This represents an increase from net credit losses of $619,000 in 2013 and principally relate to two credits. During 2014, the Company sold one nonperforming note at a discount prior to foreclosure and lowered the principal balance on another as part of an overall loan restructure.
Nonperforming assets were $14.8 million at December 31, 2014, a decrease of $8.6 million, or 36.8 percent, from $23.5 million at December 31, 2013. Nonperforming assets represented 4.67 percent of total assets at December 31, 2014 as compared to 8.15 percent at December 31, 2013. The allowance for loan and lease losses totaled $2.95 million, or 1.42 percent of total loans, at December 31, 2014. The Company continues to carefully monitor its level of loss reserves and proactively makes additions as necessary to protect against an uncertain economic environment.
The Company's net interest margin continued to remain strong with fourth quarter results at 4.0 percent. The main components to this trend are low cost of funding and a better earning asset mix. During 2014, the net interest margin averaged 4.15 percent versus 4.16 percent in 2013.
As of December 31, 2014, total assets were $317.2 million, an increase of $29.3 million, or 10.2 percent, from $287.9 million at December 31, 2013. Total loans were $209.0 million at December 31, 2014 as compared to $199.4 million at December 31, 2013. Total deposits were $277.5 million at December 31, 2014 as compared to $252.0 million at December 31, 2013.
Shareholder equity increased to $35.1 million at December 31, 2014 from $29.6 million at December 31, 2013. This resulted from core net operating income and a deferred income tax benefit. The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. The following table provides the Bank's capital ratio at December 31, 2014:
|
Actual Ratio |
Ratio to be well capitalized | |
|
Leverage Ratio Tier 1 Capital to Risk-Weighted Assets Total Capital to Risk-Weighted Assets |
10.39% 13.70% 14.93% |
5.00% 6.00% 10.00% |
About the Company
State Bank Corp., headquartered in Lake Havasu City, Arizona, is the parent company of Mohave State Bank, the largest locally-owned bank in Mohave County. Mohave State Bank is a full-service bank providing deposit and loan products, and convenient on-line banking to individuals, businesses and professionals. The Bank was established in October 1991, and the holding company was formed in 2004. The Bank has six full-service branches: two in Lake Havasu City, two in Kingman, one in Bullhead City, and one in Yuma, Arizona. The Company is traded over-the-counter as SBAZ. For further information, please visit the web site: www.mohavestbank.com.
Forward-looking Statements
This press release may include forward-looking statements about State Bank Corp. and its subsidiary, Mohave State Bank, for which the Company claims the protection of safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management's knowledge and belief as of today and include information concerning the Company's possible or assumed future financial condition, and its results of operations and business. Forward-looking statements are subject to risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include fluctuations in interest rates, government policies and regulations (including monetary and fiscal policies), legislation, economic conditions, borrower capacity to repay, operational factors and competition in the geographic and business areas in which the Company conducts its operations. All forward-looking statements included in this press release are based on information available at the time of the release, and the Company assumes no obligation to update any forward-looking statement.
UNAUDITED FINANCIAL STATEMENTS FOLLOW
| State Bank Corp. | ||||||||||
| Five-Quarter Performance Summary | ||||||||||
| For the Quarter Ended | ||||||||||
| Dollars in thousands - Unaudited | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | |||||
| Performance Highlights | ||||||||||
| Earnings: | ||||||||||
| Total revenue (Net int. income + nonint. income) | $ 3,740 | $ 3,668 | $ 3,286 | $ 3,278 | $ 3,221 | |||||
| Net interest income | $ 2,837 | $ 2,793 | $ 2,720 | $ 2,781 | $ 2,653 | |||||
| Provision for loan losses | $ 75 | $ 250 | $ 250 | $ 120 | $ -- | |||||
| Noninterest income | $ 903 | $ 875 | $ 566 | $ 497 | $ 568 | |||||
| Noninterest expense | $ 3,068 | $ 2,471 | $ 2,478 | $ 2,688 | $ 2,767 | |||||
| Net income (loss) | $ 517 | $ 612 | $ 3,798 | $ 470 | $ 454 | |||||
| Per Share Data: | ||||||||||
| Net income (loss), basic | $ 0.09 | $ 0.10 | $ 0.65 | $ 0.08 | $ 0.08 | |||||
| Net income (loss), diluted | $ 0.09 | $ 0.10 | $ 0.65 | $ 0.08 | $ 0.08 | |||||
| Cash dividends declared | $ -- | $ -- | $ -- | $ -- | $ -- | |||||
| Book value | $ 5.99 | $ 5.89 | $ 5.79 | $ 5.12 | $ 5.04 | |||||
| Tangible book value | $ 5.99 | $ 5.89 | $ 5.79 | $ 5.12 | $ 5.04 | |||||
| Performance Ratios: | ||||||||||
| Return on average assets | 0.65% | 0.79% | 5.16% | 0.65% | 0.64% | |||||
| Return on average equity | 5.91% | 7.12% | 48.09% | 6.28% | 6.18% | |||||
| Net interest margin, taxable equivalent | 4.00% | 4.19% | 4.29% | 4.35% | 4.24% | |||||
| Average cost of funds | 0.22% | 0.22% | 0.22% | 0.24% | 0.27% | |||||
| Average yield on loans | 5.33% | 5.31% | 5.18% | 5.50% | 5.23% | |||||
| Efficiency ratio | 82.03% | 67.37% | 75.41% | 82.00% | 85.90% | |||||
| Non-interest income to total revenue | 24.14% | 23.85% | 17.22% | 15.16% | 17.63% | |||||
| Capital & Liquidity: | ||||||||||
| Total equity to total assets (EOP) | 11.08% | 10.88% | 11.25% | 10.32% | 10.28% | |||||
| Tangible equity to tangible assets | 11.08% | 10.88% | 11.25% | 10.32% | 10.28% | |||||
| Total loans to total deposits | 75.01% | 73.44% | 77.36% | 76.17% | 79.45% | |||||
| Mohave State Bank | ||||||||||
| Tier 1 leverage ratio | 10.39% | 10.34% | 10.72% | 10.52% | 10.50% | |||||
| Tier 1 risk based capital | 13.70% | 13.49% | 13.23% | 13.66% | 13.33% | |||||
| Total risk based capital | 14.93% | 14.75% | 14.47% | 14.91% | 14.58% | |||||
| Asset Quality: | ||||||||||
| Gross charge-offs | $ 351 | $ -- | $ 1,045 | $ 110 | $ 50 | |||||
| Net charge-offs (NCOs) | $ 313 | $ (19) | $ 1,025 | $ 45 | $ (115) | |||||
| NCO to average loans, annualized | 0.60% | -0.04% | 2.01% | 0.09% | -0.23% | |||||
| Non-accrual loans | $ 5,522 | $ 5,975 | $ 6,147 | $ 8,617 | $ 10,968 | |||||
| Other real estate owned | $ 9,307 | $ 11,268 | $ 11,693 | $ 12,196 | $ 12,465 | |||||
| Repossessed assets | $ -- | $ -- | $ -- | $ -- | $ -- | |||||
| Non-performing assets (NPAs) | $ 14,829 | $ 17,243 | $ 17,840 | $ 20,813 | $ 23,433 | |||||
| NPAs to total assets | 4.67% | 5.43% | 5.91% | 7.14% | 8.14% | |||||
| Loans >90 days past due | $ -- | $ -- | $ -- | $ -- | $ 39 | |||||
| NPAs + 90 days past due | $ 14,829 | $ 17,243 | $ 17,840 | $ 20,813 | $ 23,472 | |||||
| NPAs + loans 90 days past due to total assets | 4.67% | 5.43% | 5.91% | 7.14% | 8.15% | |||||
| Allowance for loan losses to total loans | 1.42% | 1.57% | 1.44% | 1.90% | 1.81% | |||||
| Allowance for loan losses to NPAs | 19.92% | 18.52% | 16.39% | 17.77% | 15.47% | |||||
| Period End Balances: | ||||||||||
| Assets | $ 317,215 | $ 317,648 | $ 301,877 | $ 291,419 | $ 287,857 | |||||
| Total Loans (before reserves) | $ 208,152 | $ 203,209 | $ 202,897 | $ 194,789 | $ 200,220 | |||||
| Deposits | $ 277,493 | $ 276,716 | $ 262,275 | $ 255,722 | $ 252,004 | |||||
| Stockholders' equity | $ 35,137 | $ 34,575 | $ 33,961 | $ 30,065 | $ 29,584 | |||||
| Common stock market capitalization | $ 29,340 | $ 27,991 | $ 30,396 | $ 32,274 | $ 26,113 | |||||
| Full-time equivalent employees | 80 | 80 | 76 | 75 | 77 | |||||
| Shares outstanding | 5,868,038 | 5,868,038 | 5,868,038 | 5,868,038 | 5,868,038 | |||||
| Average Balances: | ||||||||||
| Assets | $ 318,835 | $ 309,367 | $ 294,282 | $ 288,913 | $ 284,506 | |||||
| Earning assets | $ 283,657 | $ 273,449 | $ 260,383 | $ 255,530 | $ 250,250 | |||||
| Total Loans (before reserves) | $ 207,130 | $ 205,025 | $ 203,858 | $ 198,953 | $ 202,641 | |||||
| Deposits | $ 277,947 | $ 269,083 | $ 257,282 | $ 252,563 | $ 248,511 | |||||
| Other borrowings | $ 4,481 | $ 4,737 | $ 4,547 | $ 5,584 | $ 5,642 | |||||
| Stockholders' equity | $ 34,975 | $ 34,365 | $ 31,592 | $ 29,951 | $ 29,395 | |||||
| Shares outstanding, basic - wtd | 5,868,038 | 5,868,038 | 5,868,038 | 5,868,038 | 5,868,038 | |||||
| Shares outstanding, diluted - wtd | 5,868,038 | 5,868,038 | 5,868,038 | 5,868,038 | 5,868,038 | |||||
| State Bank Corp. | ||||
| Balance Sheets | ||||
| Dollars in thousands - Unaudited | 12/31/2014 | 12/31/2013 | ||
| Consolidated Balance Sheets | ||||
| Assets | ||||
| Cash and cash equivalents | $ 1,679 | $ 1,634 | ||
| Interest bearing deposits | 3,459 | 3,360 | ||
| Overnight Funds | 31,740 | 24,395 | ||
| Held for maturity securities | 27 | 37 | ||
| Available for sale securities | 39,814 | 27,420 | ||
| Total cash and securities | 76,719 | 56,846 | ||
| Loans held for sale, before reserves | 1,300 | 2,554 | ||
| Gross loans held for investment | 209,012 | 199,444 | ||
| Loan loss reserve | (2,954) | (3,624) | ||
| Total net loans | 207,358 | 198,374 | ||
| Premises and equipment, net | 9,892 | 10,107 | ||
| Other real estate owned | 9,307 | 12,465 | ||
| Federal Home Loan Bank and other stock | 1,917 | 1,268 | ||
| Company owned life insurance | 5,871 | 5,709 | ||
| Other assets | 6,151 | 3,088 | ||
| Total Assets | $ 317,215 | $ 287,857 | ||
| Liabilities | ||||
| Non interest bearing demand | $ 62,612 | $ 58,822 | ||
| Money market, NOW and savings | 152,308 | 132,082 | ||
| Time deposits <$100K | 25,929 | 27,599 | ||
| Time deposits >$100K | 36,644 | 33,501 | ||
| Total Deposits | 277,493 | 252,004 | ||
| Securities sold under repurchase agreements | 2,734 | 4,864 | ||
| Federal Home Loan Bank advances | -- | -- | ||
| Subordinated debt | 675 | 675 | ||
| Total Debt | 3,409 | 5,539 | ||
| Other Liabilities | 1,176 | 730 | ||
| Total Liabilities | 282,078 | 258,273 | ||
| Shareholders' Equity | ||||
| Common stock | 25,037 | 25,037 | ||
| Accumulated retained earnings | 9,866 | 4,470 | ||
| Accumulated other comprehensive income | 234 | 77 | ||
| Total shareholders equity | 35,137 | 29,584 | ||
| Total liabilities and shareholders' equity | $ 317,215 | $ 287,857 | ||
| State Bank Corp. | ||||||||
| Statement of Operations | ||||||||
| For the Quarter Ended | Year to Date | |||||||
| Dollars in thousands - Unaudited | 12/31/2014 | 12/31/2013 | 12/31/2014 | 12/31/2013 | ||||
| Statements of Operations | ||||||||
| Interest income | ||||||||
| Loans, including fees | $ 2,759 | $ 2,650 | $ 10,858 | $ 10,739 | ||||
| Securities | 207 | 161 | 811 | 631 | ||||
| Fed funds and other | 26 | 14 | 70 | 67 | ||||
| Total interest income | 2,992 | 2,825 | 11,739 | 11,437 | ||||
| Interest expense | ||||||||
| Deposits | 141 | 158 | 552 | 840 | ||||
| Borrowings | 14 | 14 | 56 | 58 | ||||
| Total interest expense | 155 | 172 | 608 | 898 | ||||
| Net interest income | 2,837 | 2,653 | 11,131 | 10,539 | ||||
| Provision for loan losses | 75 | -- | 695 | 225 | ||||
| Net interest income after loan loss provision | 2,762 | 2,653 | 10,436 | 10,314 | ||||
| Noninterest income | ||||||||
| Service charges on deposits | 118 | 107 | 430 | 415 | ||||
| Mortgage loan fees | 150 | 91 | 432 | 438 | ||||
| Gain on sale of loans | 426 | 166 | 1,260 | 941 | ||||
| Gain/(Loss) on securities | -- | (38) | (42) | (5) | ||||
| Other income | 209 | 242 | 761 | 993 | ||||
| Total noninterest income | 903 | 568 | 2,841 | 2,782 | ||||
| Noninterest expense | ||||||||
| Salaries and employee benefits | 1,387 | 1,185 | 5,310 | 5,071 | ||||
| Net occupancy expense | 94 | 81 | 377 | 362 | ||||
| Equipment expense | 37 | 49 | 152 | 175 | ||||
| Data processing | 281 | 264 | 1,078 | 1,094 | ||||
| Director fees & expenses | 62 | 50 | 202 | 201 | ||||
| Insurance | 26 | 29 | 114 | 227 | ||||
| Marketing & promotion | 82 | 145 | 332 | 524 | ||||
| Professional fees | 85 | 152 | 485 | 453 | ||||
| Office expense | 28 | 27 | 109 | 113 | ||||
| Regulatory assessments | 113 | 159 | 444 | 636 | ||||
| OREO and repossessed assets | 791 | 547 | 1,579 | 2,348 | ||||
| Other expenses | 82 | 79 | 524 | 353 | ||||
| Total noninterest expense | 3,068 | 2,767 | 10,706 | 11,557 | ||||
| Income (loss) before provision (benefit) for income taxes | 597 | 454 | 2,571 | 1,539 | ||||
| Provision (benefit) for income taxes | 80 | -- | (2,825) | -- | ||||
| Net Income (Loss) | $ 517 | $ 454 | $ 5,396 | $ 1,539 | ||||
| Per Share Data | ||||||||
| Basic EPS | $ 0.09 | $ 0.08 | $ 0.92 | $ 0.26 | ||||
| Diluted EPS | $ 0.09 | $ 0.08 | $ 0.92 | $ 0.26 | ||||
| Average shares outstanding | ||||||||
| Basic | 5,868,038 | 5,868,038 | 5,868,038 | 5,868,038 | ||||
| Effect of dilutive shares | -- | -- | -- | -- | ||||
| Diluted | 5,868,038 | 5,868,038 | 5,868,038 | 5,868,038 | ||||
CONTACT: Brian M. Riley, President & CEO
Craig Wenner, EVP/Chief Financial Officer
Phone: (928) 855-0000
