×

State Bank Corp. Reports Increased Second Quarter Results

company logo

LAKE HAVASU CITY, Ariz., July 26, 2013 (GLOBE NEWSWIRE) -- State Bank Corp. (OTCBB:SBAZ) ("Company"), the holding company for Mohave State Bank ("Bank"), today announced net income of $354,000, or $0.06 per diluted share, for the quarter ended June 30, 2013, as compared to net income of $222,000, or $0.04 per diluted share, for the same period of 2012. For the six months ended June 30, 2013, the Company reported net income of $681,000, or $0.12 per diluted share, as compared to a net income of $396,000, or $0.07 per diluted share, for the same period of 2012.

Second Quarter 2013 Highlights include:

  • Net income increased 59.5 percent in the second quarter of 2013 from the same period of 2012.
  • Non-performing assets decreased $837,000 to $25.5 million.
  • $18.9 million increase in core deposits in 2013.
  • Mortgage department closed 106 loans for a total of $13.46 million, resulting in an operating profit of $201,000.
  • Declared and paid a three percent stock dividend to shareholders.

"We are very pleased to continue reporting improvement in our quarterly financial results. We anticipate that classified and problem assets will continue to moderate," commented Brian M. Riley, President & CEO.

The Company provided $225,000 to its loan loss reserve during the second quarter of 2013. Net credit losses during the second quarter of 2013 were $304,000 as compared to $298,000 for the same period of 2012.

Nonperforming assets were $25.5 million at June 30, 2013, a decrease of $2.0 million from $27.5 million at December 31, 2012. Nonperforming assets represented 8.86 percent of total assets at June 30, 2013 as compared to 10.0 percent at December 31, 2012. The allowance for loan and lease losses totaled $3.6 million, or 1.86 percent of total loans, at June 30, 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 second quarter results of 4.33 percent. The main component to this trend continues to be the decline in costs of funds, which decreased to 0.38 percent for the three months ended June 30, 2013.

As of June 30, 2013, total assets were $290.3 million, an increase of $14.4 million from $275.9 million at December 31, 2012. Total loans were $191.1 million at June 30, 2013 as compared to $202.2 million at December 31, 2012. Total deposits were $256.8 million at June 30, 2013 as compared to $239.8 million at December 31, 2012.

Shareholder equity increased to $28.8 million at June 30, 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 June 30, 2013:

Ratio to be Consent
Actual well Order
Ratio capitalized Requirement
Leverage Ratio 9.89% 5.00% 9.25%
Tier 1 Capital to Risk-Weighted Assets 13.05% 6.00% N/A
Total Capital to Risk-Weighted Assets 14.31% 10.00% 12.00%

The Company now complies with all capital requirements of its Consent Order. The Company continues to make progress in reducing its commercial real estate credit concentration 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 6/30/2013 3/31/2013 12/31/2012 9/30/2012 6/30/2012
Performance Highlights
Earnings:
Total revenue (Net int. income + nonint. income) $ 3,496 $ 3,279 $ 3,330 $ 2,788 $ 3,099
Net interest income $ 2,681 $ 2,597 $ 2,652 $ 2,621 $ 2,567
Provision for loan losses $ 225 $ -- $ -- $ 100 $ 270
Noninterest income $ 815 $ 682 $ 678 $ 167 $ 532
Noninterest expense $ 2,917 $ 2,952 $ 2,972 $ 2,425 $ 2,607
Net income (loss) $ 354 $ 327 $ 358 $ 263 $ 222
Per Share Data:
Net income (loss), basic $ 0.06 $ 0.06 $ 0.06 $ 0.04 $ 0.04
Net income (loss), diluted $ 0.06 $ 0.06 $ 0.06 $ 0.04 $ 0.04
Cash dividends declared $ -- $ -- $ -- $ -- $ --
Book value $ 4.92 $ 4.89 $ 4.85 $ 4.80 $ 4.76
Tangible book value $ 4.92 $ 4.89 $ 4.85 $ 4.80 $ 4.76
Performance Ratios:
Return on average assets 0.49% 0.45% 0.50% 0.36% 0.30%
Return on average equity 4.90% 4.55% 5.08% 3.77% 3.19%
Net interest margin, taxable equivalent 4.33% 4.14% 4.29% 4.05% 4.15%
Average cost of funds 0.38% 0.41% 0.43% 0.45% 0.48%
Average yield on loans 5.53% 5.28% 5.41% 5.55% 5.44%
Efficiency ratio 83.44% 90.03% 89.25% 86.98% 84.12%
Non-interest income to total revenue 23.31% 20.80% 20.36% 5.99% 17.17%
Capital & Liquidity:
Total equity to total assets (EOP) 9.93% 9.68% 10.32% 9.72% 9.43%
Tangible equity to tangible assets 9.93% 9.68% 10.32% 9.72% 9.43%
Total loans to total deposits 74.61% 76.05% 84.53% 79.27% 76.27%
Mohave State Bank
Tier 1 leverage ratio 9.89% 9.96% 10.00% 9.57% 9.50%
Tier 1 risk based capital 13.05% 12.68% 12.24% 12.17% 12.01%
Total risk based capital 14.31% 13.93% 13.50% 13.43% 13.27%
Asset Quality:
Gross charge-offs $ 315 $ 374 $ 110 $ 316 $ 350
Net charge-offs (NCOs) $ 304 $ 368 $ 8 $ 173 $ 298
NCO to average loans, annualized 0.61% 0.72% 0.02% 0.35% 0.61%
Non-accrual loans/securities $ 9,297 $ 9,965 $ 10,569 $ 10,639 $ 10,919
Other real estate owned $ 16,430 $ 16,404 $ 17,012 $ 18,287 $ 18,197
Repossessed assets $ -- $ -- $ -- $ -- $ --
Non-performing assets (NPAs) $ 25,727 $ 26,369 $ 27,581 $ 28,926 $ 29,116
NPAs to total assets 8.86% 8.90% 9.99% 9.97% 9.84%
Loans >90 days past due $ 100 $ 27 $ -- $ 147 $ 133
NPAs + 90 days past due $ 25,827 $ 26,396 $ 27,581 $ 29,073 $ 29,249
NPAs + loans 90 days past due to total assets 8.89% 8.91% 9.99% 10.03% 9.88%
Allowance for loan losses to total loans 1.86% 1.82% 1.98% 2.04% 2.13%
Allowance for loan losses to NPAs 13.88% 13.84% 14.57% 13.92% 14.08%
Period End Balances:
Assets $ 290,377 $ 296,235 $ 275,955 $ 289,993 $ 296,040
Total Loans (before reserves) $ 191,601 $ 200,272 $ 202,664 $ 196,919 $ 192,734
Deposits $ 256,810 $ 263,336 $ 239,760 $ 248,428 $ 252,713
Stockholders' equity $ 28,842 $ 28,689 $ 28,478 $ 28,184 $ 27,916
Common stock market capitalization $ 20,538 $ 15,383 $ 14,528 $ 14,243 $ 15,668
Full-time equivalent employees 80 80 83 81 76
Shares outstanding 5,868,038 5,868,038 5,868,038 5,868,038 5,868,038
Average Balances:
Assets $ 291,305 $ 289,199 $ 284,658 $ 293,905 $ 292,928
Earning assets $ 254,341 $ 250,950 $ 247,056 $ 258,891 $ 254,386
Total Loans (before reserves) $ 199,577 $ 203,182 $ 203,091 $ 196,513 $ 194,938
Deposits $ 258,199 $ 247,853 $ 246,759 $ 252,687 $ 252,687
Other borrowings $ 3,426 $ 11,840 $ 8,247 $ 12,047 $ 11,728
Stockholders' equity $ 28,918 $ 28,722 $ 28,208 $ 27,925 $ 27,870
Shares outstanding, basic - wtd 5,868,038 5,868,038 5,868,038 5,868,038 5,865,322
Shares outstanding, diluted - wtd 5,868,038 5,868,038 5,868,038 5,868,038 5,865,322
State Bank Corp.
Balance Sheets
Dollars in thousands - Unaudited 6/30/2013 12/31/2012
Consolidated Balance Sheets
Assets
Cash and cash equivalents $ 1,739 $ 2,196
Interest bearing deposits 3,712 5,192
Overnight Funds 30,500 7,400
Held for maturity securities 44 51
Available for sale securities 27,955 22,890
Total cash and securities 63,950 37,729
Loans held for sale, before reserves 2,800 3,114
Gross loans held for investment 191,054 202,181
Loan loss reserve (3,571) (4,018)
Total net loans 190,283 201,277
Premises and equipment, net 10,221 10,299
Other real estate owned 16,430 17,012
Federal Home Loan Bank and other stock 1,568 1,916
Company owned life insurance 5,634 5,554
Other assets 2,291 2,168
Total Assets $ 290,377 $ 275,955
Liabilities
Non interest bearing demand $ 53,438 $ 47,401
Money market, NOW and savings 131,898 119,028
Time deposits <$100K 30,488 31,294
Time deposits >$100K 40,986 42,037
Total Deposits 256,810 239,760
Securities sold under repurchase agreements 3,323 5,401
Federal Home Loan Bank advances -- --
Subordinated debt 675 675
Total Debt 3,998 6,076
Other Liabilities 727 1,641
Total Liabilities 261,535 247,477
Shareholders' Equity
Common stock 25,037 24,577
Accumulated retained earnings 3,612 3,392
Accumulated other comprehensive income 193 509
Total shareholders equity 28,842 28,478
Total liabilities and shareholders' equity $ 290,377 $ 275,955
State Bank Corp.
Statement of Operations
For the Quarter Ended Year to Date
Dollars in thousands - Unaudited 6/30/2013 6/30/2012 6/30/2013 6/30/2012
Statements of Operations
Interest income
Loans, including fees $ 2,758 $ 2,650 $ 5,442 $ 5,461
Securities 154 219 314 446
Fed funds and other 19 18 35 29
Total interest income 2,931 2,887 5,791 5,936
Interest expense
Deposits 236 305 483 627
Borrowings 14 15 30 36
Total interest expense 250 320 513 663
Net interest income 2,681 2,567 5,278 5,273
Provision for loan losses 225 270 225 370
Net interest income after loan loss provision 2,456 2,297 5,053 4,903
Noninterest income
Service charges on deposits 97 102 201 209
Mortgage loan fees 125 68 234 149
Gain on sale of loans 289 225 544 378
Gain on sale of securities -- -- 33
Other income 304 137 485 275
Total noninterest income 815 532 1,497 1,011
Noninterest expense
Salaries and employee benefits 1,314 1,173 2,599 2,378
Net occupancy expense 79 82 172 154
Equipment expense 44 46 87 99
Data processing 280 248 553 477
Director fees & expenses 50 36 96 77
Insurance 66 67 132 135
Marketing & promotion 120 65 224 144
Professional fees 85 132 172 239
Office expense 25 34 59 80
Regulatory assessments 161 158 314 314
OREO and repossessed assets 613 481 1,266 1,265
Other expenses 80 85 195 156
Total noninterest expense 2,917 2,607 5,869 5,518
Income (loss) before provision (benefit) for income taxes 354 222 681 396
Provision (benefit) for income taxes -- -- -- --
Net Income (Loss) $ 354 $ 222 $ 681 $ 396
Per Share Data
Basic EPS $ 0.06 $ 0.04 $ 0.12 $ 0.07
Diluted EPS $ 0.06 $ 0.04 $ 0.12 $ 0.07
Average shares outstanding
Basic 5,868,038 5,865,322 5,868,038 5,861,331
Effect of dilutive shares -- -- -- 197
Diluted 5,868,038 5,865,322 5,868,038 5,861,528

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

Source:State Bank Corp.