Stonegate Bank Announces Second Quarter 2017 Operating Results

POMPANO BEACH, Fla., July 28, 2017 (GLOBE NEWSWIRE) -- Stonegate Bank (NASDAQ:SGBK) (“Stonegate”) reported net income of $8.3 million for the second quarter of 2017 or $0.54 per diluted common share ($0.59 per common share net operating income, a non-GAAP measurement described below), as compared to net income of $8.0 million for the first quarter of 2017 or $0.53 per diluted common share.

Net operating income is a non-GAAP financial measurement used by management to evaluate and monitor financial results of operations and excludes certain activities or transactions, such as merger and acquisition related expenses. Information related to our use of non-GAAP financial measures and a table reconciling GAAP to non-GAAP measures used in this press release are under the caption Non-GAAP Financial Measures – Reconciliation of GAAP to non-GAAP Measures.

Key highlights for the second quarter:

  • Loans: Total loans, net of discounts and deferred fees, declined $20.6 million during the second quarter of 2017 to $2.46 billion at June 30, 2017, a result of net loan payoffs and principal reductions during the quarter. Commercial real estate (“CRE”) comprised 46% of new loan originations for the second quarter of 2017, based upon the outstanding balance as of June 30, 2017. Residential loans accounted for 33% of the new loan originations, commercial and industrial (“C&I”) were 11% of the new loan originations; 8% of the new originations were construction with the remaining balance in consumer and other loans. The loan production for the second quarter was comprised of 54% variable rate loans. Approximately 69% of the variable rate loans originated in the second quarter were tied to LIBOR.
  • Asset Quality: Total loans past due, excluding nonaccrual loans, were $1.4 million at June 30, 2017, a decrease of $3.0 million from March 31, 2017. Nonaccrual loans were $11.1 million at June 30, 2017, or 0.45% of total loans, an increase from $9.1 million at March 31, 2017, or 0.37% of total loans. Other real estate owned was $4.2 million at June 30, 2017, unchanged from March 31, 2017.
  • Net Interest Income and Margin: Net interest income, on a tax-equivalent basis, increased $864,000 for the three months ended June 30, 2017 as compared to the three months ended March 31, 2017. Net interest income totaled $27.1 million for the three months ended June 30, 2017. The net interest margin, on a tax-equivalent basis, decreased to 3.84% for the second quarter of 2017 as compared to 3.91% for the first quarter of 2017 and 3.97% for the quarter ended June 30, 2016. The decrease in the margin from the first quarter of 2017 to the second quarter of 2017 was primarily a result of a decrease in the amount of accretion that was recognized during the second quarter.
  • Noninterest Expense: Noninterest expense increased to $16.3 million for the three months ended June 30, 2017 from $15.1 million for the three months ended March 31, 2017. The increase was due to the added expenses of Insignia Bank for a full three months in the second quarter and $980,000 of costs associated with both the Insignia Bank conversion in early June 2017 and our pending acquisition by Home BancShares, Inc.
  • Capital: Stonegate remained well-capitalized as of June 30, 2017 with capital of $417.8 million as compared to $410.1 million at March 31, 2017. As of June 30, 2017, Stonegate’s total risk-based capital ratio was 12.5%; Stonegate’s Tier 1 and Common Equity Tier 1 capital ratios were each 11.5%; and Stonegate’s leverage capital ratio was 10.7%.

Loans and Deposits

Loans outstanding at June 30, 2017 were $2.46 billion as compared to $2.48 billion at March 31, 2017, a decrease of $20.6 million during the second quarter of 2017.

The loan portfolio consists primarily of loans to individuals and small- and medium-sized businesses within Stonegate’s primary market areas of South and West Florida. The table below shows the loan portfolio composition:

(in thousands of dollars) June 30, 2017 March 31, 2017
Commercial $312,147 $322,453
Commercial real estate - owner occupied 522,915 549,740
Commercial real estate - other 789,352 779,116
Construction and land development 261,187 264,040
Residential real estate 472,367 457,933
Consumer and other loans 111,511 117,954
Credit Cards 1,427 1,151
Total loans 2,470,906 2,492,387
Less: discount on loans acquired 7,168 8,216
Less: net deferred fees 3,373 3,233
Recorded investment in loans 2,460,365 2,480,938
Less: Allowance for loan losses 19,848 19,538
Net loans $2,440,517 $2,461,400

New loan originations were $160.1 million during the second quarter of 2017, with fundings of $111.1 million. As of June 30, 2017, outstanding commitments were approximately $504.6 million with approximately $75.9 million representing new approved loan originations and approximately $158.6 million in unfunded construction commitments and approximately $13.9 in unfunded credit card lines.

Total deposits decreased to $2.62 billion at June 30, 2017 from $2.72 billion at March 31, 2017. Noninterest-bearing deposits were $609.7 million at June 30, 2017, a decrease from $628.5 million at March 31, 2017, and represented approximately 23.2% of total deposits.

The following table shows the composition of deposits as of June 30, 2017 and March 31, 2017:

(in thousands of dollars) June 30, 2017 March 31, 2017
Noninterest bearing $609,656 $628,497
NOW 304,121 338,461
Money market 1,384,598 1,401,763
Savings 136,011 137,065
Certificates of deposit 188,681 215,153
Total deposits $2,623,067 $2,720,939

Credit Quality and Allowance for Loan Losses
Loans past due 30-89 days were $1.3 million at June 30, 2017, a decrease from $4.4 million at March 31, 2017. The decrease in loans past due was primarily attributable to two loans, for a total of $2.6 million, acquired from Florida Shores Bank – Southwest, and two legacy loans for $587,000 which were transferred to nonaccrual status. Past dues acquired in the Insignia Bank acquisition totaled $337,000 at June 30, 2017. There was one loan from the Regent Bank portfolio which was past due 90 days or more and still accruing at June 30, 2017. There were no legacy loans (i.e., loans made by Stonegate and not acquired by acquisition or otherwise) which were past due at June 30, 2017. Nonaccrual loans stood at $11.1 million at June 30, 2017, an increase from $9.1 million at March 31, 2017. This increase was due primarily to $3.1 million of new loans that were changed to nonaccrual status during the second quarter, offset by two nonaccrual loans for $669,000 which were paid off and five loans for $365,000 which were charged-off. Legacy nonaccrual loans were approximately $2.9 million at June 30, 2017 versus $2.8 million as of March 31, 2017. Residential loans classified as nonaccrual were $2.6 million or 23.5% of the nonaccrual loans and commercial real estate loans classified as nonaccrual were $3.9 million or 34.8% of the nonaccrual loans as of June 30, 2017. At June 30, 2017, there remained approximately $13.8 million in nonaccretable discounts on loans previously acquired. None of the acquired loans are subject to a loss share arrangement with the Federal Deposit Insurance Corporation. The following table outlines Stonegate’s past due and nonaccrual loans at June 30, 2017:

(dollars in thousands) Legacy Loans Insignia Bank Regent Bank Other Acquired
Banks
Total
Past due 30-89 days $- $337 $656 $307 $1,300
Past due 90 + days - - 129 - 129
Nonaccrual 2,909 - 3,540 4,674 11,123
Total $ 2,909 $ 337 $ 4,325 $ 4,981 $ 12,552

Nonperforming assets (nonaccrual loans and other real estate owned) were $15.3 million as of June 30, 2017, an increase of $2.0 million from March 31, 2017. Other real estate owned (“OREO”) was virtually unchanged at June 30, 2017 as compared to March 31, 2017.

The following table outlines nonperforming assets for the periods ended:

(in thousands of dollars) June 30,
2017
March 31,
2017
Nonaccrual $11,123 $9,058
Other real estate owned 4,211 4,222
Total nonperforming assets $15,334 $13,280
Nonperforming loans as a percentage of total loans 0.45% 0.37%
Nonperforming assets as a percentage of total assets 0.49% 0.41%

Loans modified as troubled debt restructuring were $10.5 million and $9.4 million at June 30, 2017 and March 31, 2017, respectively. There were four loans modified as troubled debt restructuring during the second quarter of 2017. Specific reserves allocated to loans modified as troubled debt restructuring decreased to $145,000 at June 30, 2017, from $161,000 at March 31, 2017.

At June 30, 2017, the allowance for loan losses was $19.8 million, an increase of $310,000 from March 31, 2017. During the second quarter of 2017 recoveries totaled $104,000, charge-offs were $394,000 and we added provision expense of $600,000. The provision expense added for the second quarter was due to an increase in charged off loans and to the continued seasoning of the acquired loan portfolios. Specific reserves decreased to $757,000 at June 30, 2017 from $1.0 million at March 31, 2017. The allowance for loan losses represented 0.81% of total loans as of June 30, 2017 and 0.79% as of March 31, 2017. Additionally, as of June 30, 2017, the allowance represented 1.02% of total loans which are currently being reserved for.

The following table shows the activity in the allowance for loan losses for the quarters ended:

(in thousands of dollars) June 30,
2017
March 31,
2017
Balance at beginning of period $19,538 $18,888
Charge-offs (394) (118)
Recoveries 104 168
Provision for loan losses 600 600
Balance at end of period $19,848 $19,538

The table below reflects the allowance allocation per loan category and percent of loans in each category to total loans for the periods indicated:

June 30,
2017
March 31,
2017
(in thousands of dollars)
Amount % Amount %
Commercial $2,903 14.6 $2,915 14.9
Commercial real estate 12,042 60.7 11,742 60.1
Construction and land development 1,983 10.0 1,913 9.8
Residential real estate 2,458 12.4 2,491 12.8
Consumer and other loans 462 2.3 477 2.4
Total $19,848 100.0 $19,538 100.0

The following is a summary of information pertaining to impaired loans for the three months ended on the date indicated:

(in thousands of dollars) June 30,
2017
March 31,
2017
June 30,
2016
Impaired loans without a valuation allowance $14,982 $7,986 $6,637
Impaired loans with a valuation allowance 7,667 7,975 5,644
Total impaired loans $22,649 $15,961 $12,281
Valuation allowance related to impaired loans $757 $1,024 $611

Net Interest Income and Margin
On a tax-equivalent basis, Stonegate’s net interest income for the three months ended June 30, 2017 was $27.1 million, an increase of approximately $864,000 from the first quarter of 2017 and an increase of $5.1 million from the second quarter 2016. Average earning assets grew $114.4 million from the first quarter of 2017 to the second quarter of 2017, primarily a result of the increase in the assets acquired from Insignia Bank, which occurred on March 7, 2017. The yield on loans decreased from 5.00% for the first quarter of 2017 to 4.85% for the second quarter of 2017, which was also a decrease from the 5.00% yield for the second quarter of 2016. The decrease in the loan yield in the second quarter was due to the decrease in nonaccretable discounts, associated with loan payoffs, recognized in the second quarter of 2017 over the first quarter of 2017.

The net interest margin on a tax-equivalent basis decreased from 3.91% for the first quarter of 2017 to 3.84% for the second quarter of 2017. The net interest margin was 3.97% for the second quarter of 2016. The average yield on total earning assets was 4.37% for the second quarter of 2017 versus 4.43% for the first quarter of 2017. The average yield on paying liabilities increased four basis points from 0.69% from the first quarter of 2017 to 0.73% for the second quarter of 2017. Stonegate’s cost of funds has increased from 0.48% for the June 2016 month-to-date average to 0.59% for the June 2017 month-to-date average.

The following table recaps yields and costs by various interest-earning asset and interest-bearing liability account types for the current quarter, the previous quarter and the same quarter last year.

Yield and cost table (unaudited)
(in thousands of dollars)
2nd Quarter 2017 1st Quarter 2017 2nd Quarter 2016
Average
Balance
Interest Rate Average
Balance
Interest Rate Average
Balance
Interest Rate
ASSETS
Loans, Net(1)(2)(4) $2,462,579 $29,763 4.85% $2,323,075 $28,648 5.00% $1,909,961 $23,754 5.00%
Investment Securities 111,465 385 1.39 117,985 483 1.66 109,352 441 1.62
Federal Funds Sold 30,000 91 1.22 30,000 68 0.92 30,000 53 0.71
Other Investments(3) 4,666 56 4.81 4,068 46 4.59 3,049 35 4.62
Deposits with interest at banks 229,307 640 1.12 248,528 531 0.87 178,622 233 0.52
Total Earning Assets 2,838,017 30,935 4.37% 2,723,656 29,776 4.43% 2,230,984 24,516 4.42%
LIABILITIES
Savings, NOW and Money Market $1,801,783 $3,076 0.68% $1,795,495 $2,823 0.64% $1,486,766 $2,067 0.56%
Time Deposits 201,982 265 0.53 183,091 263 0.58 147,830 206 0.56
Total Interest Bearing Deposits 2,003,765 3,341 0.67 1,978,586 3,086 0.63 1,634,596 2,273 0.56
Other Borrowings 82,647 448 2.17 81,115 408 2.04 57,767 215 1.50
Total Interest Bearing Liabilities 2,086,412 3,789 0.73% 2,059,701 3,494 0.69% 1,692,363 2,488 0.59%
Net interest spread (tax- equivalent basis) (4) 3.64% 3.74% 3.83%
Net interest margin (tax-equivalent basis) (5) 3.84% 3.91% 3.97%
(1) Average balances include nonaccrual loans, and are net of unearned loan fees of $3,187, $3,239 and $3,101 for 2nd Quarter 2017, 1st Quarter 2017 and 2nd Quarter 2016, respectively.
(2) Interest income includes fees on loans of $70, $60 and $32 for 2nd Quarter 2017, 1st Quarter 2017 and 2nd Quarter 2016, respectively.
(3) “Other investments” consists of equity stock in the Federal Home Loan Bank of Atlanta (“FHLB”) that Stonegate is required to own based on its transactions with the FHLB.
(4) Interest income and rates include the effects of a tax equivalent adjustment using applicable statutory tax rates to adjust tax exempt interest income on tax exempt loans to a fully taxable basis.
(5) Represents net interest income divided by total interest-earning assets.

Noninterest Income

Noninterest income of $2.9 million for the second quarter of 2017 increased from $2.1 million for the quarter ended March 31, 2017. The increase in the second quarter was primarily due to $366,000 in loan prepayment fees that were collected, $196,000 in interest swap fees and approximately $170,000 net gain on the sale of a former Regent Bank banking office.

Noninterest Expense

Noninterest expense for the three months ended June 30, 2017 increased to $16.3 million from $15.1 million at March 31, 2017, and from $12.8 million for the three months ended June 30, 2016.

Salaries and employee benefits increased to $8.8 million for the second quarter of 2017 versus $8.4 million for the first quarter of 2017. This compares with $6.9 million for the three months ended June 30, 2016. The increase in salaries and employee benefits in the second quarter of 2017 from the first quarter of 2017 were from the staff added with the Insignia Bank acquisition in March 2017, both permanent and temporary, as well as payments made in the second quarter for the Insignia Bank conversion.

Occupancy and equipment expenses increased to $2.5 million for the three months ended June 30, 2017 from $2.3 million for the quarter ended March 31, 2017. Occupancy and equipment expenses were $2.1 million for the three months June 30, 2016. Expenses for merger-related branch closures were approximately $200,000 during the second quarter of 2017.

Data processing expenses increased $447,000 from $478,000 for the first quarter of 2017 to $925,000 for the quarter ended June 30, 2017. Approximately $356,000 million of data processing expenses in the second quarter were related to the Insignia Bank data conversion. Professional fees for the three months ended June 30, 2017 were $994,000. This compared to professional fees of $1.4 million for the three months ended March 31, 2017 and $954,000 for the three months ended June 30, 2016. During the second quarter of 2017, there was $203,000 in legal and other professional fees for merger-related expenses as compared to $583,000 in the first quarter of 2017 and $334,000 in the second quarter of 2016.

The table below outlines the expenses for the quarters ended:

June 30, 2017 March 31, 2017 June 30, 2016
(in thousands of dollars)
Salaries and employee benefits $8,770 $8,411 $6,907
Occupancy and equipment expense 2,469 2,264 2,158
FDIC insurance and state assessments 406 398 284
Data processing 925 478 447
Loan and other real estate expense 590 201 102
Professional fees 994 1,352 954
Core deposit intangible amortization 575 463 408
Other operating expenses 1,596 1,551 1,540
Totals $16,325 $15,118 $12,800

Looking forward to the third quarter of 2017, Stonegate anticipates additional costs associated with the pending merger with Home Bancshares, Inc. and Centennial Bank.

About Stonegate Bank

Stonegate Bank is a full-service commercial bank, providing a wide range of business and consumer financial products and services through its 24 banking offices in its target marketplaces of South and West Florida, which are comprised primarily of Broward, Charlotte, Collier, Hillsborough, Lee, Miami-Dade, Palm Beach and Sarasota Counties in Florida. Stonegate’s principal executive office and mailing address is 400 North Federal Highway, Pompano Beach, Florida 33062 and its telephone number is (954) 315-5500.

There will not be a conference call held this quarter to discuss the second quarter results.

Forward-Looking Statements

Any non-historical statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The following factors, among others, could cause our actual results to differ: the strength of the United States economy in general and the strength of the local economies in which we conduct operations; our need and ability to incur additional debt or equity financing; our ability to execute our growth strategy through expansion; our ability to comply with the extensive laws and regulations to which we are subject; changes in the securities and capital markets; changes in general market interest rates; legislative and regulatory changes; monetary and fiscal policies of the U.S. Treasury and the Federal Reserve; changes in the quality or composition of our loan portfolios; demand for loan products; changes in deposit flows, real estate values, and competition and other economic, competitive, and technological factors affecting our operations, pricing, products and services; and our ability to manage the risks involved in the foregoing. Additional factors can be found in our filings with the FDIC, which are available at the FDIC’s internet site (http://www2.fdic.gov/efr). Forward-looking statements in this press release speak only as of the date of the press release and Stonegate Bank assumes no obligation to update any forward-looking statements or the reasons why actual results could differ.

Stonegate Bank and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands of dollars, except per share data)
June 30, 2017 December 31, 2016
Assets
Cash and due from banks $325,314 $305,803
Federal funds sold 30,000 30,000
Securities held to maturity (Fair value of $109,132 at June 30, 2017 and $116,719 at December 31, 2016) 108,803 116,529
Other investments 4,601 3,833
Loans, net of allowance for loan losses of $19,848 at June 30, 2017 and $18,888 at December 31, 2016 2,440,517 2,256,048
Premises and equipment, net 34,633 38,510
Bank premises held for sale 4,872 -
Bank-owned life insurance 47,729 44,011
Other real estate owned 4,211 2,792
Other assets 132,508 104,076
Total assets $3,133,188 $2,901,602
Liabilities and Stockholders’ Equity
Liabilities
Total deposits $2,623,067 $2,447,826
Other borrowings 68,146 71,448
Subordinated Debentures 8,289 8,175
Other liabilities 15,861 19,040
Total liabilities 2,715,363 2,546,489
Stockholders’ Equity
Common stock, $5 par value, 20,000,000 shares authorized; 15,222,546 issued and 15,319,888 shares outstanding as of June 30, 2017 and 14,267,451 shares issued and 14,264,793 outstanding as of December 31, 2016 76,613 71,337
Additional paid-in capital 230,388 186,948
Retained earnings 111,683 97,814
Treasury Stock (13) (13)
Accumulated other comprehensive income (loss) (846) (973)
Total stockholders’ equity 417,825 355,113
Total liabilities and stockholders’ equity $3,133,188 $2,901,602


Stonegate Bank and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)
(in thousands of dollars, except per share data)
For the three months ended
June 30,
2017
March 31,
2017
June 30,
2016
Interest income:
Interest and fees on loans $29,381 $28,253 $23,314
Interest on securities 385 483 441
Interest on federal funds sold and at other banks 731 599 286
Other interest 56 46 35
Total interest income 30,553 29,381 24,076
Interest expense:
Interest on deposits 3,341 3,086 2,273
Other interest 448 408 215
Total interest expense 3,789 3,494 2,488
Net interest income 26,764 25,887 21,588
Provision for loan losses 600 600 -
Net interest income after
provision for loan losses 26,164 25,287 21,588
Noninterest income:
Service charges and fees on deposit accounts
786846 632
Other noninterest income 2,132 1,231 1,113
Total noninterest income 2,918 2,077 1,745
Noninterest expense:
Salaries and employee benefits 8,770 8,411 6,907
Occupancy and equipment expenses 2,469 2,264 2,158
Data processing 925 478 447
Professional fees 994 1,352 954
Core deposit intangible amortization 575 463 408
Other operating expenses 2,592 2,150 1,926
Total noninterest expense 16,325 15,118 12,800
Income before income taxes 12,757 12,246 10,533
Income tax 4,433 4,252 3,616
Net income applicable to common stock $8,324 $7,994 $6,917
Earnings per common share:
Basic $0.54 $0.55 $0.54
Diluted 0.53 0.53 0.52
Common shares used in the calculation of earnings per share:
Basic 15,318,219 14,558,233 12,825,612
Diluted 15,809,027 15,090,775 13,189,982


Stonegate Bank and Subsidiaries
CONDENSED FINANCIAL HIGHLIGHTS
(in thousands of dollars)
As of
June 30,
2017
December 31,
2016
June 30,
2016
BALANCE SHEET ITEMS:
Assets $3,133,188 $2,901,602 $2,404,139
Loans, net 2,440,517 2,256,048 1,945,517
Deposits 2,623,067 2,447,826 2,034,212
Stockholders’ equity 417,825 355,113 296,961
CAPITAL RATIOS:
Total capital to risk weighted assets 12.5% 12.1% 12.0%
Tier 1 capital to risk weighted assets 11.5 11.1 11.1
Common Equity Tier 1 to risk weighted assets 11.5 11.1 11.1
Tier 1 capital to average assets 10.7 10.0 10.4
QUARTERLY AVERAGE
BALANCE SHEET ITEMS:
Assets $3,131,269 $2,948,409 $2,430,820
Interest earning assets 2,838,017 2,687,990 2,230,934
Loans, net of allowance for loan losses 2,443,090 2,279,629 1,891,500
Interest bearing liabilities 2,086,412 2,023,913 1,692,363
Deposits 2,616,478 2,499,516 2,060,687
Stockholders’ equity 415,979 351,730 294,362


Stonegate Bank and Subsidiaries
CONDENSED FINANCIAL HIGHLIGHTS
(in thousands of dollars, except per share data)
Three Months Ended
June 30, 2017 March 31, 2017 June 30,
2016
FINANCIAL DATA:
Net interest income $26,764 $25,887 $21,588
Net interest income – tax-equivalent 27,146 26,282 22,028
Noninterest income 2,918 2,077 1,745
Noninterest expense 16,325 15,118 12,800
Income tax 4,433 4,252 3,616
Net income attributed to common shares 8,324 7,994 6,917
Weighted average number of common shares
outstanding:
Basic 15,318,219 14,558,233 12,825,612
Diluted 15,809,027 15,090,775 13,189,982
Per common share data:
Basic $0.54 $0.55 $0.54
Diluted 0.53 0.53 0.52
Cash dividend declared to common shares 1,226 1,224 1,028

Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with GAAP. Stonegate’s management uses these non-GAAP financial measures in their analysis of Stonegate’s performance. These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or transactions that in management’s opinion can distort period-to-period comparisons of Stonegate’s performance. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of Stonegate’s core business. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP disclosures in this press release are set forth below.

Reconciliation of GAAP to non-GAAP Measures
(in thousands of dollars, except per share data)

June 30, 2017 March 31, 2017
Interest income, as reported (GAAP) $30,553$29,381
Tax-equivalents adjustments 382 395
Interest income (tax equivalent) $30,935$29,776
Net interest income, as reported (GAAP) $26,764$25,887
Tax-equivalent adjustments 382 395
Net interest income (tax equivalent) $27,146$26,282
Net income (GAAP) $8,324$7,994
Non-interest expense adjustments:
Merger and acquisition related expenses 577 16
Branch closure expenses 200 -
Professional expenses 203 583
Tax effect using the effective tax rate for the period presented 341 208
Net operating income $8,963$8,385
Net operating income per common share $0.59$0.58

INVESTOR RELATIONS: Dave Seleski (dseleski@stonegatebank.com) Stonegate Bank (954) 315-5510

Source:Stonegate Bank