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State Bank Corp Reports First Quarter Results

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LAKE HAVASU CITY, Ariz., April 26, 2013 (GLOBE NEWSWIRE) -- State Bank Corp. (OTCBB:SBAZ) ("Company"), the holding company for Mohave State Bank ("Bank"), today announced net income of $327,000, or $0.06 per diluted share, for the quarter ended March 31, 2013, as compared to net income of $174,000, or $0.03 per diluted share, for the same period of 2012.

First Quarter 2013 Highlights include:

  • Net income increased 88 percent in the first quarter of 2013 from the same period of 2012.
  • Non-performing assets decreased to $26.3MM, the lowest level since December 2009.
  • Two large foreclosed properties in escrow totaling $3.64 million.
  • Mortgage department originated 82 loans totaling $12 million, resulting in an operating profit of $138,000. Record quarterly production of reverse mortgages, totaling $1.5 million.
  • The Board of Directors declared a three percent stock dividend.

"We are starting 2013 with more solid performance numbers. Our net income and problem assets continue to trend in a positive direction. As in 2012, we look forward to another strong year in mortgage banking," commented Brian M. Riley, President & CEO.

The Company was not required to provide any additional loan loss reserves during the first quarter of 2013 as compared to $100,000 in the same period of 2012. Net credit losses during the first quarter of 2013 were $368,000 as compared to $1.1 million for the same period of 2012.

Nonperforming assets were $26.3 million at March 31, 2013, a decrease of $1.3 million from $27.6 million at December 31, 2012. Nonperforming assets represented 8.90 percent of total assets at March 31, 2013 as compared to 10.0 percent at December 31, 2012. The allowance for loan and lease losses totaled $3.7 million, or 1.82 percent of total loans, at March 31, 2013. The Company continues to carefully monitor its level of loss reserves and will proactively make additions as necessary to protect against an uncertain economic environment.

The Company's net interest margin continues to remain strong with first quarter results of 4.14 percent. The main component is the continual decline in costs of funds, which decreased to 0.41 percent at March 31, 2013.

As of March 31, 2013, total assets were $296.2 million, an increase of $20.3 million from $275.9 million at December 31, 2012. Total loans were $199.7 million at March 31, 2013 as compared to $202.2 million at December 31, 2012. Total deposits were $263.3 million at March 31, 2013 as compared to $239.8 million at December 31, 2012.

Shareholder equity increased to $28.7 million at March 31, 2013 from $28.5 million at December 31, 2012. This was a result of 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 March 31, 2013:

Actual
Ratio
Ratio to be
well
capitalized
Consent
Order
Requirement
Leverage Ratio 9.96% 5.00% 9.25%
Tier 1 Capital to Risk-Weighted Assets 12.68% 6.00% N/A
Total Capital to Risk-Weighted Assets 13.93% 10.00% 12.00%

The Company now complies with all capital requirements of its Consent Order. The Company continues to make progress on reducing commercial real estate credit concentrations and classified assets.

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 3/31/2013 12/31/2012 9/30/2012 6/30/2012 3/31/2012
Performance Highlights
Earnings:
Total revenue (Net int. income + nonint. income) $ 3,279 $ 3,330 $ 2,788 $ 3,099 $ 3,185
Net interest income $ 2,597 $ 2,652 $ 2,621 $ 2,567 $ 2,706
Provision for loan losses $ -- $ -- $ 100 $ 270 $ 100
Noninterest income $ 682 $ 678 $ 167 $ 532 $ 479
Noninterest expense $ 2,952 $ 2,972 $ 2,425 $ 2,607 $ 2,911
Net income (loss) $ 327 $ 358 $ 263 $ 222 $ 174
Per Share Data:
Net income (loss), basic $ 0.06 $ 0.06 $ 0.05 $ 0.04 $ 0.03
Net income (loss), diluted $ 0.06 $ 0.06 $ 0.05 $ 0.04 $ 0.03
Cash dividends declared $ -- $ -- $ -- $ -- $ --
Book value $ 5.04 $ 5.00 $ 4.95 $ 4.90 $ 4.87
Tangible book value $ 5.04 $ 5.00 $ 4.95 $ 4.90 $ 4.87
Performance Ratios:
Return on average assets 0.45% 0.50% 0.36% 0.30% 0.24%
Return on average equity 4.55% 5.08% 3.77% 3.19% 2.52%
Net interest margin, taxable equivalent 4.14% 4.29% 4.05% 4.15% 4.49%
Average cost of funds 0.41% 0.43% 0.45% 0.48% 0.53%
Average yield on loans 5.28% 5.41% 5.55% 5.44% 5.64%
Efficiency ratio 90.03% 89.25% 86.98% 84.12% 91.40%
Non-interest income to total revenue 20.80% 20.36% 5.99% 17.17% 15.04%
Capital & Liquidity:
Total equity to total assets (EOP) 9.68% 10.32% 9.72% 9.43% 9.59%
Tangible equity to tangible assets 9.68% 10.32% 9.72% 9.43% 9.59%
Total loans to total deposits 76.05% 84.53% 79.27% 76.27% 77.06%
Mohave State Bank
Tier 1 leverage ratio 9.96% 10.00% 9.57% 9.50% 9.59%
Tier 1 risk based capital 12.68% 12.24% 12.17% 12.01% 11.79%
Total risk based capital 13.93% 13.50% 13.43% 13.27% 13.04%
Asset Quality:
Gross charge-offs $ 374 $ 110 $ 316 $ 350 $ 1,194
Net charge-offs (NCOs) $ 368 $ 8 $ 173 $ 298 $ 1,145
NCO to average loans, annualized 0.72% 0.02% 0.35% 0.61% 2.30%
Non-accrual assets $ 9,965 $ 10,569 $ 10,639 $ 10,919 $ 10,145
Other real estate owned $ 16,404 $ 17,012 $ 18,287 $ 18,197 $ 18,871
Repossessed assets $ -- $ -- $ -- $ -- $ --
Non-performing assets (NPAs) $ 26,369 $ 27,581 $ 28,926 $ 29,116 $ 29,016
NPAs to total assets 8.90% 9.99% 9.97% 9.84% 10.05%
Loans >90 days past due $ 27 $ -- $ 147 $ 133 $ --
NPAs + 90 days past due $ 26,396 $ 27,581 $ 29,073 $ 29,249 $ 29,016
NPAs + loans 90 days past due to total assets 8.91% 9.99% 10.03% 9.88% 10.05%
Allowance for loan losses to total loans 1.82% 1.98% 2.04% 2.13% 2.11%
Allowance for loan losses to NPAs 13.84% 14.57% 13.92% 14.08% 14.22%
Period End Balances:
Assets $ 296,235 $ 275,955 $ 289,993 $ 296,040 $ 288,787
Total Loans (before reserves) $ 200,272 $ 202,664 $ 196,919 $ 192,734 $ 195,259
Deposits $ 263,336 $ 239,760 $ 248,428 $ 252,713 $ 253,370
Stockholders' equity $ 28,689 $ 28,478 $ 28,184 $ 27,916 $ 27,705
Common stock market capitalization $ 15,383 $ 14,528 $ 14,243 $ 15,668 $ 19,906
Full-time equivalent employees 80 83 81 76 78
Shares outstanding 5,697,351 5,697,351 5,697,351 5,697,351 5,687,351
Average Balances:
Assets $ 289,199 $ 284,658 $ 293,905 $ 292,928 $ 287,138
Earning assets $ 250,950 $ 247,056 $ 258,891 $ 254,386 $ 247,444
Total Loans (before reserves) $ 203,182 $ 203,091 $ 196,513 $ 194,938 $ 199,421
Deposits $ 247,853 $ 246,759 $ 252,687 $ 252,687 $ 246,988
Other borrowings $ 11,840 $ 8,247 $ 12,047 $ 11,728 $ 11,819
Stockholders' equity $ 28,722 $ 28,208 $ 27,925 $ 27,870 $ 27,666
Shares outstanding, basic - wtd 5,697,351 5,697,351 5,697,351 5,694,714 5,686,965
Shares outstanding, diluted - wtd 5,697,351 5,697,351 5,697,351 5,694,714 5,687,358
State Bank Corp.
Balance Sheets
Dollars in thousands - Unaudited 3/31/2013 12/31/2012
Consolidated Balance Sheets
Assets
Cash and cash equivalents $ 2,414 $ 2,196
Interest bearing deposits 3,126 5,192
Overnight Funds 32,985 7,400
Held for maturity securities 47 51
Available for sale securities 23,492 22,890
Total cash and securities 62,064 37,729
Loans held for sale, before reserves 1,885 3,114
Gross loans held for investment 199,712 202,181
Loan loss reserve (3,650) (4,018)
Total net loans 197,947 201,277
Premises and equipment, net 10,258 10,299
Other real estate owned 16,404 17,012
Federal Home Loan Bank and other stock 1,743 1,916
Company owned life insurance 5,593 5,554
Other assets 2,226 2,168
Total Assets $ 296,235 $ 275,955
Liabilities
Non interest bearing demand $ 61,509 $ 47,401
Money market, NOW and savings 128,247 119,028
Time deposits <$100K 31,275 31,294
Time deposits >$100K 42,305 42,037
Total Deposits 263,336 239,760
Securities sold under repurchase agreements 2,764 5,401
Federal Home Loan Bank advances -- --
Subordinated debt 675 675
Total Debt 3,439 6,076
Other Liabilities 771 1,641
Total Liabilities 267,546 247,477
Shareholders' Equity
Common stock 24,577 24,577
Accumulated retained earnings 3,719 3,392
Accumulated other comprehensive income 393 509
Total shareholders equity 28,689 28,478
Total liabilities and shareholders' equity $ 296,235 $ 275,955
State Bank Corp.
Statement of Operations
For the Quarter Ended
Dollars in thousands - Unaudited 3/31/2013 3/31/2012
Statements of Operations
Interest income
Loans, including fees $ 2,684 $ 2,811
Securities 160 227
Fed funds and other 16 11
Total interest income 2,860 3,049
Interest expense
Deposits 247 322
Borrowings 16 21
Total interest expense 263 343
Net interest income 2,597 2,706
Provision for loan losses -- 100
Net interest income after loan loss provision 2,597 2,606
Noninterest income
Service charges on deposits 104 108
Mortgage loan fees 110 81
Gain on sale of loans 255 153
Gain on sale of securities 33 --
Other income 180 137
Total noninterest income 682 479
Noninterest expense
Salaries and employee benefits 1,285 1,206
Net occupancy expense 93 73
Equipment expense 42 53
Data processing 273 229
Director fees & expenses 45 41
Insurance 66 68
Marketing & promotion 104 78
Professional fees 88 107
Office expense 34 46
Regulatory assessments 154 156
OREO and repossessed assets 653 783
Other expenses 115 71
Total noninterest expense 2,952 2,911
Income (loss) before provision (benefit) for income taxes 327 174
Provision (benefit) for income taxes -- --
Net Income $ 327 $ 174
Per Share Data
Basic EPS $ 0.06 $ 0.03
Diluted EPS $ 0.06 $ 0.03
Average shares outstanding
Basic 5,697,351 5,686,965
Effect of dilutive shares -- 393
Diluted 5,697,351 5,687,358

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

Source:State Bank Corp.