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State Bank Corp. Tops $1 Million Net for 2012

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LAKE HAVASU CITY, Ariz., Feb. 1, 2013 (GLOBE NEWSWIRE) -- State Bank Corp. (OTCBB:SBAZ) ("Company"), the holding company for Mohave State Bank ("Bank"), today announced net income of $358,000 or $0.06 per diluted share, for the quarter ended December 31, 2012, as compared to a net income of $137,000, or $0.02 per diluted share, for the same period of 2011, an increase of 161 percent. For the year ended December 31, 2012, the Company reported net income of $1.02 million, or $0.18 per diluted share, as compared to net income of $542,000, or $0.10 per diluted share, in the same period of 2011, an increase of 88 percent.

Fourth Quarter 2012 Highlights include:

  • Net Income increased 161 percent in the fourth quarter of 2012 from the same period of 2011.
  • Net credit losses fell to $8,000 in the fourth quarter of 2012, the lowest level in over five years.
  • OREO related expense decreased by 44 percent in the fourth quarter of 2012 from the same period of 2011.
  • Mortgage Department originated and sold a record 280 closed loans totaling $44.2 million in 2012.
  • The Bank's Tier 1 Leverage Capital Ratio reached 10 percent.
  • The Bank added Jason Anderson and Ruben Fontanes to its Board of Directors.

"By nearly all measures, 2012 was an outstanding year. The Company continues to make solid progress toward its recovery goals," commented Brian M. Riley, President & CEO. "While we are pleased to see improving economic conditions within the communities we serve, the dedication and persistence of our banking professionals has really made the difference."

With real estate values continuing to stabilize and the credit environment improving, the Company was not required to provide any additional loan loss reserves during the fourth quarter. The Company provided $470,000 to its loan loss reserve during 2012. Net credit losses during the fourth quarter of 2012 were $8,000 as compared to $259,000 for the same period of 2011.

Nonperforming assets were $27.6 million at December 31, 2012, a decrease of $5.0 million from $32.6 million at December 31, 2011. The allowance for loan and lease losses totaled $4.02 million, or 1.98 percent of total loans, at December 31, 2012. The Company continues to carefully monitor its level of loss reserves and will proactively make additions as necessary.

The Company's net interest margin continues to remain strong with fourth quarter results of 4.29 percent. The main component to this trend continues to be the decline in cost of funds, which decreased for the 24th consecutive quarter to 0.43 percent for the three months ended December 31, 2012.

As of December 31, 2012, total assets were $275.9 million, a decrease of $7.0 million from $282.9 million at December 31, 2011. Total loans were $202.7 million at December 31, 2012 as compared to $200.4 million at December 31, 2011. Total deposits were $239.7 million at December 31, 2012 as compared to $243.6 million at December 31, 2011.

Shareholder equity increased to $28.5 million at December 31, 2012 from $27.5 million at December 31, 2011. This was a result of strong net operating income. The Bank must meet certain minimum capital requirements to satisfy federal and state laws. The following table provides the Bank's capital ratio at December 31, 2012:

Actual
Ratio
Ratio to be
well
capitalized
Consent
Order
Requirement
Leverage Ratio
Tier 1 Capital to Risk-Weighted Assets
Total Capital to Risk-Weighted Assets
10.00%
12.24%
13.50%
5.00%
6.00%
10.00%
9.25%
N/A
12.00%

The Company maintains capital above the levels required by its Consent Order. The Company continues to make progress on the remaining two items of the Order: reducing classified assets and lowering its non-owner occupied commercial real estate loan concentration.

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.

The State Bank Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8162

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 12/31/2012 9/30/2012 6/30/2012 3/31/2012 12/31/2011
Performance Highlights
Earnings:
Total revenue (Net int. income + nonint. income) $ 3,330 $ 2,788 $ 3,099 $ 3,185 $ 3,545
Net interest income $ 2,652 $ 2,621 $ 2,567 $ 2,706 $ 2,980
Provision for loan losses $ -- $ 100 $ 270 $ 100 $ --
Noninterest income $ 678 $ 167 $ 532 $ 479 $ 565
Noninterest expense $ 2,972 $ 2,425 $ 2,607 $ 2,911 $ 3,408
Net income (loss) $ 358 $ 263 $ 222 $ 174 $ 137
Per Share Data:
Net income (loss), basic $ 0.06 $ 0.05 $ 0.04 $ 0.03 $ 0.02
Net income (loss), diluted $ 0.06 $ 0.05 $ 0.04 $ 0.03 $ 0.02
Cash dividends declared $ -- $ -- $ -- $ -- $ --
Book value $ 5.00 $ 4.95 $ 4.90 $ 4.87 $ 4.83
Tangible book value $ 5.00 $ 4.95 $ 4.90 $ 4.87 $ 4.83
Performance Ratios:
Return on average assets 0.50% 0.36% 0.30% 0.24% 0.19%
Return on average equity 5.08% 3.77% 3.19% 2.52% 1.99%
Net interest margin, taxable equivalent 4.29% 4.05% 4.15% 4.49% 4.86%
Average cost of funds 0.43% 0.45% 0.48% 0.53% 0.56%
Average yield on loans 5.41% 5.55% 5.44% 5.64% 6.18%
Efficiency ratio 89.25% 86.98% 84.12% 91.40% 96.14%
Non-interest income to total revenue 20.36% 5.99% 17.17% 15.04% 15.94%
Capital & Liquidity:
Total equity to total assets (EOP) 10.32% 9.72% 9.43% 9.59% 9.72%
Tangible equity to tangible assets 10.32% 9.72% 9.43% 9.59% 9.72%
Total loans to total deposits 84.53% 79.27% 76.27% 77.06% 82.29%
Mohave State Bank
Tier 1 leverage ratio 10.00% 9.57% 9.50% 9.59% 9.39%
Tier 1 risk based capital 12.24% 12.17% 12.01% 11.79% 11.47%
Total risk based capital 13.50% 13.43% 13.27% 13.04% 12.73%
Asset Quality:
Gross charge-offs $ 110 $ 316 $ 350 $ 1,194 $ 307
Net charge-offs (NCOs) $ 8 $ 173 $ 298 $ 1,145 $ 259
NCO to average loans, annualized 0.02% 0.35% 0.61% 2.30% 0.52%
Non-accrual loans $ 10,569 $ 10,639 $ 10,919 $ 10,145 $ 14,288
Other real estate owned $ 17,012 $ 18,287 $ 18,197 $ 18,871 $ 18,362
Repossessed assets $ -- $ -- $ -- $ -- $ --
Non-performing assets (NPAs) $ 27,581 $ 28,926 $ 29,116 $ 29,016 $ 32,650
NPAs to total assets 9.99% 9.97% 9.84% 10.05% 11.54%
Loans >90 days past due $ -- $ 147 $ 133 $ -- $ 9
NPAs + 90 days past due $ 27,581 $ 29,073 $ 29,249 $ 29,016 $ 32,659
NPAs + loans 90 days past due to total assets 9.99% 10.03% 9.88% 10.05% 11.55%
Allowance for loan losses to total loans 1.98% 2.04% 2.13% 2.11% 2.58%
Allowance for loan losses to NPAs 14.57% 13.92% 14.08% 14.22% 15.84%
Period End Balances:
Assets $ 275,955 $ 289,993 $ 296,040 $ 288,787 $ 282,834
Total Loans (before reserves) $ 202,664 $ 196,919 $ 192,734 $ 195,259 $ 200,442
Deposits $ 239,760 $ 248,428 $ 252,713 $ 253,370 $ 243,571
Stockholders' equity $ 28,478 $ 28,184 $ 27,916 $ 27,705 $ 27,484
Common stock market capitalization $ 14,528 $ 14,243 $ 15,668 $ 19,906 $ 11,146
Full-time equivalent employees 83 81 76 78 78
Shares outstanding 5,697,351 5,697,351 5,697,351 5,687,351 5,686,588
Average Balances:
Assets $ 284,658 $ 293,905 $ 292,928 $ 287,138 $ 290,948
Earning assets $ 247,056 $ 258,891 $ 254,386 $ 247,444 $ 251,086
Total Loans (before reserves) $ 203,091 $ 196,513 $ 194,938 $ 199,421 $ 199,978
Deposits $ 246,759 $ 252,687 $ 252,687 $ 246,988 $ 247,934
Other borrowings $ 8,247 $ 12,047 $ 11,728 $ 11,819 $ 14,696
Stockholders' equity $ 28,208 $ 27,925 $ 27,870 $ 27,666 $ 27,570
Shares outstanding, basic - wtd 5,697,351 5,697,351 5,694,714 5,686,965 5,682,739
Shares outstanding, diluted - wtd 5,697,351 5,697,351 5,694,714 5,687,358 5,683,557
State Bank Corp.
Balance Sheets
Dollars in thousands - Unaudited 12/31/2012 12/31/2011
Consolidated Balance Sheets
Assets
Cash and cash equivalents $ 2,196 $ 2,204
Interest bearing deposits 5,192 3,595
Overnight Funds 7,400 10,560
Held for maturity securities 51 633
Available for sale securities 22,890 29,823
Total cash and securities 37,729 46,815
Loans held for sale, before reserves 3,114 2,409
Gross loans held for investment 202,181 199,986
Loan loss reserve (4,018) (5,172)
Total net loans 201,277 197,223
Premises and equipment, net 10,299 10,508
Other real estate owned 17,012 18,362
Federal Home Loan Bank and other stock 1,916 2,403
Company owned life insurance 5,554 5,388
Other assets 2,168 2,135
Total Assets $ 275,955 $ 282,834
Liabilities
Non interest bearing demand $ 47,401 $ 48,483
Money market, NOW and savings 119,028 118,310
Time deposits <$100K 31,294 35,373
Time deposits >$100K 42,037 41,405
Total Deposits 239,760 243,571
Securities sold under repurchase agreements 5,401 8,523
Federal Home Loan Bank advances -- 2,000
Subordinated debt 675 675
Total Debt 6,076 11,198
Other Liabilities 1,641 581
Total Liabilities 247,477 255,350
Shareholders' Equity
Common stock 24,577 24,535
Accumulated retained earnings 3,392 2,375
Accumulated other comprehensive income 509 574
Total shareholders equity 28,478 27,484
Total liabilities and shareholders' equity $ 275,955 $ 282,834
State Bank Corp.
Statement of Operations
For the Quarter Ended Year to Date
Dollars in thousands - Unaudited 12/31/2012 12/31/2011 12/31/2012 12/31/2011
Statements of Operations
Interest income
Loans, including fees $ 2,747 $ 3,088 $ 10,934 $ 11,838
Securities 164 247 784 1,107
Fed funds and other 13 12 64 57
Total interest income 2,924 3,347 11,782 13,002
Interest expense
Deposits 257 342 1,169 1,590
Borrowings 15 25 68 183
Total interest expense 272 367 1,237 1,773
Net interest income 2,652 2,980 10,545 11,229
Provision for loan losses -- -- 470 696
Net interest income after loan loss provision 2,652 2,980 10,075 10,533
Noninterest income
Service charges on deposits 118 133 435 498
Mortgage loan fees 118 96 386 345
Gain on sale of loans 296 202 972 579
OTTI Impairment -- -- (510) --
Other income 146 134 575 630
Total noninterest income 678 565 1,858 2,052
Noninterest expense
Salaries and employee benefits 1,205 1,199 4,828 4,585
Net occupancy expense 83 69 325 326
Equipment expense 38 45 175 167
Data processing 258 226 970 901
Director fees & expenses 45 37 158 152
Insurance 67 67 269 212
Marketing & promotion 78 97 279 277
Professional fees 102 40 474 320
Office expense 35 49 156 195
Regulatory assessments 164 162 646 723
OREO and repossessed assets 756 1,364 2,249 3,826
Other expenses 141 53 387 359
Total noninterest expense 2,972 3,408 10,916 12,043
Income (loss) before provision (benefit) for income taxes 358 137 1,017 542
Provision (benefit) for income taxes -- -- -- --
Net Income (Loss) $ 358 $ 137 $ 1,017 $ 542
Per Share Data
Basic EPS $ 0.06 $ 0.02 $ 0.18 $ 0.10
Diluted EPS $ 0.06 $ 0.02 $ 0.18 $ 0.10
Average shares outstanding
Basic 5,697,351 5,682,739 5,695,807 5,171,987
Effect of dilutive shares -- 818 98 3,551
Diluted 5,697,351 5,683,557 5,695,905 5,175,538

CONTACT: Brian M. Riley, President & CEO Craig Wenner, EVP/Chief Financial Officer Phone: (928) 855-0000

Source:State Bank Corp.