LAKE HAVASU CITY, Ariz., Jan. 31, 2014 (GLOBE NEWSWIRE) -- State Bank Corp. (OTCBB: SBAZ )("Company"), the holding company for Mohave State Bank ("Bank"), today announced net income of $454,000 or $0.08 per diluted share, for the quarter ended December 31, 2013, as compared to net income of $358,000, or $0.06 per diluted share, for the same period of 2012. For the year ended December 31, 2013, the Company reported net income of $1.54 million, or $0.26 per diluted share, as compared to net income of $1.02 million, or $0.18 per diluted share, in the same period of 2012.
Highlights for the fourth quarter and year 2013 include:
- Fourth quarter net income increased by 27% in 2013 from the same period of 2012. Year over year net income increased by 51%.
- Nonperforming assets decreased by another $838,000 during the fourth quarter lowering the Bank's classified asset ratio to 89% at December 31, 2013 from 150% at December 31, 2012.
- The Company experienced annual balance sheet growth for the first time in five years driven by a strong increase in core deposits.
- The Bank's Mortgage Division established a new record of $46.4 million in loan production and recorded a net operating profit of $496,000 in 2013.
"Several factors were important keys to our success in 2013: another outstanding year in mortgage banking, lower nonperforming assets, increased SBA/USDA loan gains, and modest balance sheet growth," commented Brian M. Riley, President & CEO. "As our recovery plan unfolds, we have positioned the Company to benefit from improvement in local business conditions."
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 $225,000 to its loan loss reserve during 2013. Net credit recoveries during the fourth quarter of 2013 were $115,000 as compared to net credit losses of $8,000 for the same period of 2012. For the year, net credit losses were $619,000, or 0.30% of beginning loans, in 2013 as compared to $1.6 million, or 0.80% of beginning loans, in 2012.
Nonperforming assets were $23.5 million at December 31, 2013, a decrease of $4.1 million from $27.6 million at December 31, 2012. Nonperforming assets represented 8.15% of total assets at December 31, 2013 as compared to 9.99% at December 31, 2012. The allowance for loan and lease losses totaled $3.62 million, or 1.81% of total loans, at December 31, 2013. The Company continues to carefully monitor its level of loss reserves and will proactively make additions as necessary.
Despite a persistent low interest rate environment, the Company's net interest margin continues to remain strong with fourth quarter 2013 results of 4.24%, down from 4.29% in the same period of 2012. The main component to this trend continues to be the decline in costs of funds, which decreased to 0.27% for the three months ended December 31, 2013. For the year, the net interest margin was 4.22% in 2013 as compared to 4.25% in 2012.
As of December 31, 2013, total assets were $287.9 million, an increase of $12.0 million from $275.9 million at December 31, 2012. Loans held for investment were $199.4 million at December 31, 2013 as compared to $202.2 million at December 31, 2012. Total deposits were $252.0 million at December 31, 2013 as compared to $239.7 million at December 31, 2012. The Bank experienced core deposit growth of $24.5 million in 2013.
Shareholder equity increased to $29.6 million at December 31, 2013 from $28.5 million at December 31, 2012. 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, 2013:
| Actual Ratio | Ratio to be well capitalized | Consent Order Requirement | |
| Leverage Ratio | 10.50% | 5.00% | 9.25% |
| Tier 1 Capital to Risk-Weighted Assets | 13.33% | 6.00% | N/A |
| Total Capital to Risk-Weighted Assets | 14.58% | 10.00% | 12.00% |
The Company now complies with all capital requirements of its Consent Order. The Company continues to make progress on reducing classified assets.
About the Company
State Bank Corp., headquartered in Lake Havasu City, Arizona, is the parent company of Mohave State Bank. Mohave State Bank is a full-service bank providing deposit and loan products 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 in Lake Havasu City, Kingman, Bullhead City, and Yuma, Arizona markets. 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 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 3/31/2013 | 12/31/2012 | |||||
| Performance Highlights | ||||||||||
| Earnings: | ||||||||||
| Total revenue (Net int. income + nonint. income) | $ 3,221 | $ 3,324 | $ 3,496 | $ 3,279 | $ 3,330 | |||||
| Net interest income | $ 2,653 | $ 2,608 | $ 2,681 | $ 2,597 | $ 2,652 | |||||
| Provision for loan losses | $ -- | $ -- | $ 225 | $ -- | $ -- | |||||
| Noninterest income | $ 568 | $ 716 | $ 815 | $ 682 | $ 678 | |||||
| Noninterest expense | $ 2,767 | $ 2,920 | $ 2,917 | $ 2,952 | $ 2,972 | |||||
| Net income (loss) | $ 454 | $ 404 | $ 354 | $ 327 | $ 358 | |||||
| Per Share Data: | ||||||||||
| Net income (loss), basic | $ 0.08 | $ 0.07 | $ 0.06 | $ 0.06 | $ 0.06 | |||||
| Net income (loss), diluted | $ 0.08 | $ 0.07 | $ 0.06 | $ 0.06 | $ 0.06 | |||||
| Cash dividends declared | $ -- | $ -- | $ -- | $ -- | $ -- | |||||
| Book value | $ 5.04 | $ 4.96 | $ 4.92 | $ 4.89 | $ 4.85 | |||||
| Tangible book value | $ 5.04 | $ 4.96 | $ 4.92 | $ 4.89 | $ 4.85 | |||||
| Performance Ratios: | ||||||||||
| Return on average assets | 0.64% | 0.56% | 0.49% | 0.45% | 0.50% | |||||
| Return on average equity | 6.18% | 5.57% | 4.90% | 4.55% | 5.08% | |||||
| Net interest margin, taxable equivalent | 4.24% | 4.16% | 4.33% | 4.14% | 4.29% | |||||
| Average cost of funds | 0.27% | 0.42% | 0.38% | 0.41% | 0.43% | |||||
| Average yield on loans | 5.23% | 5.68% | 5.53% | 5.28% | 5.41% | |||||
| Efficiency ratio | 85.90% | 87.85% | 83.44% | 90.03% | 89.25% | |||||
| Non-interest income to total revenue | 17.63% | 21.54% | 23.31% | 20.80% | 20.36% | |||||
| Capital & Liquidity: | ||||||||||
| Total equity to total assets (EOP) | 10.28% | 10.16% | 9.93% | 9.68% | 10.32% | |||||
| Tangible equity to tangible assets | 10.28% | 10.16% | 9.93% | 9.68% | 10.32% | |||||
| Total loans to total deposits | 79.45% | 78.31% | 74.61% | 76.05% | 84.53% | |||||
| Mohave State Bank | ||||||||||
| Tier 1 leverage ratio | 10.50% | 10.20% | 9.89% | 9.96% | 10.00% | |||||
| Tier 1 risk based capital | 13.33% | 13.17% | 13.05% | 12.68% | 12.24% | |||||
| Total risk based capital | 14.58% | 14.42% | 14.31% | 13.93% | 13.50% | |||||
| Asset Quality: | ||||||||||
| Gross charge-offs | $ 50 | $ 65 | $ 315 | $ 374 | $ 110 | |||||
| Net charge-offs (NCOs) | $ (115) | $ 62 | $ 304 | $ 368 | $ 8 | |||||
| NCO to average loans, annualized | -0.23% | 0.13% | 0.61% | 0.72% | 0.02% | |||||
| Non-accrual loans | $ 10,968 | $ 9,924 | $ 9,297 | $ 9,965 | $ 10,569 | |||||
| Other real estate owned | $ 12,465 | $ 14,386 | $ 16,430 | $ 16,404 | $ 17,012 | |||||
| Repossessed assets | $ -- | $ -- | $ -- | $ -- | $ -- | |||||
| Non-performing assets (NPAs) | $ 23,433 | $ 24,310 | $ 25,727 | $ 26,369 | $ 27,581 | |||||
| NPAs to total assets | 8.14% | 8.48% | 8.86% | 8.90% | 9.99% | |||||
| Loans >90 days past due | $ 39 | $ -- | $ 100 | $ 27 | $ -- | |||||
| NPAs + 90 days past due | $ 23,472 | $ 24,310 | $ 25,827 | $ 26,396 | $ 27,581 | |||||
| NPAs + loans 90 days past due to total assets | 8.15% | 8.48% | 8.89% | 8.91% | 9.99% | |||||
| Allowance for loan losses to total loans | 1.81% | 1.78% | 1.86% | 1.82% | 1.98% | |||||
| Allowance for loan losses to NPAs | 15.47% | 14.44% | 13.88% | 13.84% | 14.57% | |||||
| Period End Balances: | ||||||||||
| Assets | $ 287,857 | $ 286,625 | $ 290,377 | $ 296,235 | $ 275,955 | |||||
| Total Loans (before reserves) | $ 200,220 | $ 196,888 | $ 191,601 | $ 200,272 | $ 202,664 | |||||
| Deposits | $ 252,004 | $ 251,426 | $ 256,810 | $ 263,336 | $ 239,760 | |||||
| Stockholders' equity | $ 29,584 | $ 29,120 | $ 28,842 | $ 28,689 | $ 28,478 | |||||
| Common stock market capitalization | $ 26,113 | $ 20,538 | $ 20,538 | $ 15,383 | $ 14,528 | |||||
| Full-time equivalent employees | 77 | 80 | 80 | 80 | 83 | |||||
| Shares outstanding | 5,868,038 | 5,868,038 | 5,868,038 | 5,868,038 | 5,868,038 | |||||
| Average Balances: | ||||||||||
| Assets | $ 284,506 | $ 287,844 | $ 291,305 | $ 289,199 | $ 284,658 | |||||
| Earning assets | $ 250,250 | $ 251,041 | $ 254,341 | $ 250,950 | $ 247,056 | |||||
| Total Loans (before reserves) | $ 202,641 | $ 193,317 | $ 199,577 | $ 203,182 | $ 203,091 | |||||
| Deposits | $ 248,511 | $ 253,239 | $ 258,199 | $ 247,853 | $ 246,759 | |||||
| Other borrowings | $ 5,642 | $ 4,719 | $ 3,426 | $ 11,840 | $ 8,247 | |||||
| Stockholders' equity | $ 29,395 | $ 29,008 | $ 28,918 | $ 28,722 | $ 28,208 | |||||
| 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 | 12/31/2013 | 12/31/2012 | ||
| Consolidated Balance Sheets | ||||
| Assets | ||||
| Cash and cash equivalents | $ 1,634 | $ 2,196 | ||
| Interest bearing deposits | 3,360 | 5,192 | ||
| Overnight Funds | 24,395 | 7,400 | ||
| Held for maturity securities | 37 | 51 | ||
| Available for sale securities | 27,420 | 22,890 | ||
| Total cash and securities | 56,846 | 37,729 | ||
| Loans held for sale, before reserves | 2,554 | 3,114 | ||
| Gross loans held for investment | 199,444 | 202,181 | ||
| Loan loss reserve | (3,624) | (4,018) | ||
| Total net loans | 198,374 | 201,277 | ||
| Premises and equipment, net | 10,107 | 10,299 | ||
| Other real estate owned | 12,465 | 17,012 | ||
| Federal Home Loan Bank and other stock | 1,268 | 1,916 | ||
| Company owned life insurance | 5,709 | 5,554 | ||
| Other assets | 3,088 | 2,168 | ||
| Total Assets | $ 287,857 | $ 275,955 | ||
| Liabilities | ||||
| Non interest bearing demand | $ 58,822 | $ 47,401 | ||
| Money market, NOW and savings | 132,082 | 119,028 | ||
| Time deposits <$100K | 27,599 | 31,294 | ||
| Time deposits >$100K | 33,501 | 42,037 | ||
| Total Deposits | 252,004 | 239,760 | ||
| Securities sold under repurchase agreements | 4,864 | 5,401 | ||
| Federal Home Loan Bank advances | -- | -- | ||
| Subordinated debt | 675 | 675 | ||
| Total Debt | 5,539 | 6,076 | ||
| Other Liabilities | 730 | 1,641 | ||
| Total Liabilities | 258,273 | 247,477 | ||
| Shareholders' Equity | ||||
| Common stock | 25,037 | 24,577 | ||
| Accumulated retained earnings | 4,470 | 3,392 | ||
| Accumulated other comprehensive income | 77 | 509 | ||
| Total shareholders equity | 29,584 | 28,478 | ||
| Total liabilities and shareholders' equity | $ 287,857 | $ 275,955 | ||
| State Bank Corp. | ||||||||
| Statement of Operations | ||||||||
| For the Quarter Ended | Year to Date | |||||||
| Dollars in thousands - Unaudited | 12/31/2013 | 12/31/2012 | 12/31/2013 | 12/31/2012 | ||||
| Statements of Operations | ||||||||
| Interest income | ||||||||
| Loans, including fees | $ 2,650 | $ 2,747 | $ 10,739 | $ 10,934 | ||||
| Securities | 161 | 164 | 631 | 784 | ||||
| Fed funds and other | 14 | 13 | 67 | 64 | ||||
| Total interest income | 2,825 | 2,924 | 11,437 | 11,782 | ||||
| Interest expense | ||||||||
| Deposits | 158 | 257 | 840 | 1,169 | ||||
| Borrowings | 14 | 15 | 58 | 68 | ||||
| Total interest expense | 172 | 272 | 898 | 1,237 | ||||
| Net interest income | 2,653 | 2,652 | 10,539 | 10,545 | ||||
| Provision for loan losses | -- | -- | 225 | 470 | ||||
| Net interest income after loan loss provision | 2,653 | 2,652 | 10,314 | 10,075 | ||||
| Noninterest income | ||||||||
| Service charges on deposits | 107 | 118 | 415 | 435 | ||||
| Mortgage loan fees | 91 | 118 | 438 | 386 | ||||
| Gain on sale of loans | 166 | 296 | 941 | 972 | ||||
| Gain/(Loss) on securities | (38) | -- | (5) | (510) | ||||
| Other income | 242 | 146 | 993 | 575 | ||||
| Total noninterest income | 568 | 678 | 2,782 | 1,858 | ||||
| Noninterest expense | ||||||||
| Salaries and employee benefits | 1,185 | 1,205 | 5,071 | 4,828 | ||||
| Net occupancy expense | 81 | 83 | 362 | 325 | ||||
| Equipment expense | 49 | 38 | 175 | 175 | ||||
| Data processing | 264 | 258 | 1,094 | 970 | ||||
| Director fees & expenses | 50 | 45 | 201 | 158 | ||||
| Insurance | 29 | 67 | 227 | 269 | ||||
| Marketing & promotion | 145 | 78 | 524 | 279 | ||||
| Professional fees | 152 | 102 | 453 | 474 | ||||
| Office expense | 27 | 35 | 113 | 156 | ||||
| Regulatory assessments | 159 | 164 | 636 | 646 | ||||
| OREO and repossessed assets | 547 | 756 | 2,348 | 2,249 | ||||
| Other expenses | 79 | 141 | 353 | 387 | ||||
| Total noninterest expense | 2,767 | 2,972 | 11,557 | 10,916 | ||||
| Income (loss) before provision (benefit) for income taxes | 454 | 358 | 1,539 | 1,017 | ||||
| Provision (benefit) for income taxes | -- | -- | -- | -- | ||||
| Net Income (Loss) | $ 454 | $ 358 | $ 1,539 | $ 1,017 | ||||
| Per Share Data | ||||||||
| Basic EPS | $ 0.08 | $ 0.06 | $ 0.26 | $ 0.18 | ||||
| Diluted EPS | $ 0.08 | $ 0.06 | $ 0.26 | $ 0.18 | ||||
| Average shares outstanding | ||||||||
| Basic | 5,868,038 | 5,697,351 | 5,868,038 | 5,695,807 | ||||
| Effect of dilutive shares | -- | -- | -- | 98 | ||||
| Diluted | 5,868,038 | 5,697,351 | 5,868,038 | 5,695,905 | ||||
Brian M. Riley, President & CEO Craig Wenner, EVP/Chief Financial Officer Phone: (928) 855-0000
