LAKE HAVASU CITY, Ariz., April 25, 2014 (GLOBE NEWSWIRE) -- State Bank Corp. (OTCBB: SBAZ ) ("Company"), the holding company for Mohave State Bank ("Bank"), today announced net income of $470,000, or $0.08 per diluted share, for the quarter ended March 31, 2014, as compared to net income of $327,000, or $0.06 per diluted share, for the same period of 2013.
First Quarter 2014 Highlights include:
- The Bank was officially released from its regulatory Consent Order.
- Net income increased 44 percent in the first quarter of 2014 from the same period of 2013.
- Non-performing assets decreased by another 2.6 million to $20.8 million, lowering the Bank's classified asset ratio to 74% at March 31, 2014 from 89% at December 31, 2013.
- Core Deposits increased by $6.8 million.
"Our financial performance has become more stable and consistent as credit conditions have improved," commented Brian M. Riley, President & CEO. "We finally reached the required metrics in 2013 that allowed banking regulators to formally release us from our stipulated Consent Order. That action is the culmination of four years of diligent and persistent work by the professionals of Mohave State Bank."
The Company provided $120,000 to its loan loss reserve during the first quarter of 2014. Net credit losses during the first quarter of 2014 were $45,000 as compared to $368,000 for the same period of 2013.
Nonperforming assets were $20.8 million at March 31, 2014, a decrease of $2.6 million from $23.4 million at December 31, 2013. Nonperforming assets represented 7.14 percent of total assets at March 31, 2014 as compared to 8.15 percent at December 31, 2013. The allowance for loan and lease losses totaled $3.7 million, or 1.90 percent of total loans, at March 31, 2014. 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.
Despite a persistent low interest rate environment, the Company's net interest margin continues to remain strong with first quarter results of 4.35 percent. The increased quarterly net interest margin was the result of the collection of back interest on one problem credit and the continued decline in the cost of funding.
As of March 31, 2014, total assets were $291.4 million, an increase of $3.5 million from $287.9 million at December 31, 2013. Total loans were $194.0 million at March 31, 2014 as compared to $199.4 million at December 31, 2013. Total deposits were $255.7 million at March 31, 2014 as compared to $252.0 million at December 31, 2013.
Shareholder equity increased to $30.0 million at March 31, 2014 from $29.6 million at December 31, 2013. This was a result of net operating income. The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. The following table provides the Bank's capital ratio at March 31, 2014:
| Actual Ratio | Ratio to be well capitalized | ||
| Leverage Ratio Tier 1 Capital to Risk-Weighted Assets Total Capital to Risk-Weighted Assets | 10.51% 13.66% 14.91% | 5.00% 6.00% 10.00% |
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 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 3/31/2013 |
| Performance Highlights | |||||
| Earnings: | |||||
| Total revenue (Net int. income + nonint. income) | $ 3,278 | $ 3,221 | $ 3,324 | $ 3,496 | $ 3,279 |
| Net interest income | $ 2,781 | $ 2,653 | $ 2,608 | $ 2,681 | $ 2,597 |
| Provision for loan losses | $ 120 | $ -- | $ -- | $ 225 | $ -- |
| Noninterest income | $ 497 | $ 568 | $ 716 | $ 815 | $ 682 |
| Noninterest expense | $ 2,688 | $ 2,767 | $ 2,920 | $ 2,917 | $ 2,952 |
| Net income (loss) | $ 470 | $ 454 | $ 404 | $ 354 | $ 327 |
| Per Share Data: | |||||
| Net income (loss), basic | $ 0.08 | $ 0.08 | $ 0.07 | $ 0.06 | $ 0.06 |
| Net income (loss), diluted | $ 0.08 | $ 0.08 | $ 0.07 | $ 0.06 | $ 0.06 |
| Cash dividends declared | $ -- | $ -- | $ -- | $ -- | $ -- |
| Book value | $ 5.12 | $ 5.04 | $ 4.96 | $ 4.92 | $ 4.89 |
| Tangible book value | $ 5.12 | $ 5.04 | $ 4.96 | $ 4.92 | $ 4.89 |
| Performance Ratios: | |||||
| Return on average assets | 0.65% | 0.64% | 0.56% | 0.49% | 0.45% |
| Return on average equity | 6.28% | 6.18% | 5.57% | 4.90% | 4.55% |
| Net interest margin, taxable equivalent | 4.35% | 4.24% | 4.16% | 4.33% | 4.14% |
| Average cost of funds | 0.24% | 0.27% | 0.33% | 0.38% | 0.41% |
| Average yield on loans | 5.50% | 5.23% | 5.68% | 5.53% | 5.28% |
| Efficiency ratio | 82.00% | 85.90% | 87.85% | 83.44% | 90.03% |
| Non-interest income to total revenue | 15.16% | 17.63% | 21.54% | 23.31% | 20.80% |
| Capital & Liquidity: | |||||
| Total equity to total assets (EOP) | 10.32% | 10.28% | 10.16% | 9.93% | 9.68% |
| Tangible equity to tangible assets | 10.32% | 10.28% | 10.16% | 9.93% | 9.68% |
| Total loans to total deposits | 76.17% | 79.45% | 78.31% | 74.61% | 76.05% |
| Mohave State Bank | |||||
| Tier 1 leverage ratio | 10.51% | 10.50% | 10.20% | 9.89% | 9.96% |
| Tier 1 risk based capital | 13.66% | 13.33% | 13.17% | 13.05% | 12.68% |
| Total risk based capital | 14.91% | 14.58% | 14.42% | 14.31% | 13.93% |
| Asset Quality: | |||||
| Gross charge-offs | $ 110 | $ 50 | $ 65 | $ 315 | $ 374 |
| Net charge-offs (NCOs) | $ 45 | $ (115) | $ 62 | $ 304 | $ 368 |
| NCO to average loans, annualized | 0.09% | -0.23% | 0.13% | 0.61% | 0.72% |
| Non-accrual assets | $ 8,617 | $ 10,968 | $ 9,924 | $ 9,297 | $ 9,965 |
| Other real estate owned | $ 12,196 | $ 12,465 | $ 14,386 | $ 16,430 | $ 16,404 |
| Repossessed assets | $ -- | $ -- | $ -- | $ -- | $ -- |
| Non-performing assets (NPAs) | $ 20,813 | $ 23,433 | $ 24,310 | $ 25,727 | $ 26,369 |
| NPAs to total assets | 7.14% | 8.14% | 8.48% | 8.86% | 8.90% |
| Loans >90 days past due | $ -- | $ 39 | $ -- | $ 100 | $ 27 |
| NPAs + 90 days past due | $ 20,813 | $ 23,472 | $ 24,310 | $ 25,827 | $ 26,396 |
| NPAs + loans 90 days past due to total assets | 7.14% | 8.15% | 8.48% | 8.89% | 8.91% |
| Allowance for loan losses to total loans | 1.90% | 1.81% | 1.78% | 1.86% | 1.82% |
| Allowance for loan losses to NPAs | 17.77% | 15.47% | 14.44% | 13.88% | 13.84% |
| Period End Balances: | |||||
| Assets | $ 291,419 | $ 287,857 | $ 286,625 | $ 290,377 | $ 296,235 |
| Total Loans (before reserves) | $ 194,789 | $ 200,220 | $ 196,888 | $ 191,601 | $ 200,272 |
| Deposits | $ 255,722 | $ 252,004 | $ 251,426 | $ 256,810 | $ 263,336 |
| Stockholders' equity | $ 30,065 | $ 29,584 | $ 29,120 | $ 28,842 | $ 28,689 |
| Common stock market capitalization | $ 32,274 | $ 26,113 | $ 20,538 | $ 20,538 | $ 15,383 |
| Full-time equivalent employees | 75 | 77 | 80 | 80 | 80 |
| Shares outstanding | 5,868,038 | 5,868,038 | 5,868,038 | 5,868,038 | 5,868,038 |
| Average Balances: | |||||
| Assets | $ 288,913 | $ 284,506 | $ 287,844 | $ 291,305 | $ 289,199 |
| Earning assets | $ 255,530 | $ 250,250 | $ 251,041 | $ 254,341 | $ 250,950 |
| Total Loans (before reserves) | $ 198,953 | $ 202,641 | $ 193,317 | $ 199,577 | $ 203,182 |
| Deposits | $ 252,563 | $ 248,511 | $ 253,239 | $ 258,199 | $ 247,853 |
| Other borrowings | $ 5,584 | $ 5,642 | $ 4,719 | $ 3,426 | $ 11,840 |
| Stockholders' equity | $ 29,951 | $ 29,395 | $ 29,008 | $ 28,918 | $ 28,722 |
| 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 | 3/31/2014 | 12/31/2013 |
| Consolidated Balance Sheets | ||
| Assets | ||
| Cash and cash equivalents | $ 2,222 | $ 1,634 |
| Interest bearing deposits | 4,521 | 3,360 |
| Overnight Funds | 22,180 | 24,395 |
| Held for maturity securities | 35 | 37 |
| Available for sale securities | 37,073 | 27,420 |
| Total cash and securities | 66,031 | 56,846 |
| Loans held for sale, before reserves | 2,773 | 2,554 |
| Gross loans held for investment | 194,018 | 199,444 |
| Loan loss reserve | (3,699) | (3,624) |
| Total net loans | 193,092 | 198,374 |
| Premises and equipment, net | 10,016 | 10,107 |
| Other real estate owned | 12,196 | 12,465 |
| Federal Home Loan Bank and other stock | 1,268 | 1,268 |
| Company owned life insurance | 5,747 | 5,709 |
| Other assets | 3,069 | 3,088 |
| Total Assets | $ 291,419 | $ 287,857 |
| Liabilities | ||
| Non interest bearing demand | $ 60,453 | $ 58,822 |
| Money market, NOW and savings | 137,236 | 132,082 |
| Time deposits <$100K | 26,735 | 27,599 |
| Time deposits >$100K | 31,298 | 33,501 |
| Total Deposits | 255,722 | 252,004 |
| Securities sold under repurchase agreements | 4,173 | 4,864 |
| Federal Home Loan Bank advances | -- | -- |
| Subordinated debt | 675 | 675 |
| Total Debt | 4,848 | 5,539 |
| Other Liabilities | 784 | 730 |
| Total Liabilities | 261,354 | 258,273 |
| Shareholders' Equity | ||
| Common stock | 25,037 | 25,037 |
| Accumulated retained earnings | 4,940 | 4,470 |
| Accumulated other comprehensive income | 88 | 77 |
| Total shareholders equity | 30,065 | 29,584 |
| Total liabilities and shareholders' equity | $ 291,419 | $ 287,857 |
| State Bank Corp. | ||
| Statement of Operations | ||
| For the Quarter Ended | ||
| Dollars in thousands - Unaudited | 3/31/2014 | 3/31/2013 |
| Statements of Operations | ||
| Interest income | ||
| Loans, including fees | $ 2,735 | $ 2,684 |
| Securities | 188 | 160 |
| Fed funds and other | 14 | 16 |
| Total interest income | 2,937 | 2,860 |
| Interest expense | ||
| Deposits | 142 | 247 |
| Borrowings | 14 | 16 |
| Total interest expense | 156 | 263 |
| Net interest income | 2,781 | 2,597 |
| Provision for loan losses | 120 | -- |
| Net interest income after loan loss provision | 2,661 | 2,597 |
| Noninterest income | ||
| Service charges on deposits | 103 | 104 |
| Mortgage loan fees | 79 | 110 |
| Gain on sale of loans | 168 | 255 |
| (Loss)/Gain on securities | (42) | 33 |
| Other income | 189 | 180 |
| Total noninterest income | 497 | 682 |
| Noninterest expense | ||
| Salaries and employee benefits | 1,308 | 1,285 |
| Net occupancy expense | 93 | 93 |
| Equipment expense | 38 | 42 |
| Data processing | 268 | 273 |
| Director fees & expenses | 45 | 45 |
| Insurance | 30 | 66 |
| Marketing & promotion | 108 | 104 |
| Professional fees | 195 | 88 |
| Office expense | 27 | 34 |
| Regulatory assessments | 154 | 154 |
| OREO and repossessed assets | 291 | 653 |
| Other expenses | 131 | 115 |
| Total noninterest expense | 2,688 | 2,952 |
| Income (loss) before provision (benefit) for income taxes | 470 | 327 |
| Provision (benefit) for income taxes | -- | -- |
| Net Income | $ 470 | $ 327 |
| Per Share Data | ||
| Basic EPS | $ 0.08 | $ 0.06 |
| Diluted EPS | $ 0.08 | $ 0.06 |
| Average shares outstanding | ||
| Basic | 5,868,038 | 5,868,038 |
| Effect of dilutive shares | -- | -- |
| Diluted | 5,868,038 | 5,868,038 |
Brian M. Riley, President & CEO Craig Wenner, EVP/Chief Financial Officer (928) 855-0000
