LAKE HAVASU CITY, Ariz., Jan. 22, 2016 (GLOBE NEWSWIRE) -- State Bank Corp. (OTCQB:SBAZ) (“Company”), the holding company for Mohave State Bank (“Bank”), today announced net income grew to $946,000 , or $0.16 per diluted share, for the fourth quarter of 2015, as compared to net income of $517,000, or $0.09 per diluted share, for the same period of 2014.
For the year ended December 31, 2015, net income totaled $3.47 million, or $0.59 per diluted share. Following a $2.8 million income tax benefit as a result of the reduction of its deferred tax valuation allowance State Bank Corp.’s net income was $5.40 million, or $0.92 per diluted share, in 2014. Pretax income increased 101.5% to $5.18 million for the year ended 2015 compared to $2.57 million for the year ended 2014, reflecting the growth in net interest income and reduced credit resolution costs.
“Our results this quarter and the full year reflect our focus on improving profitability and making the necessary investments to drive future growth. Effectively managing each of these areas is key to helping us take advantages of the opportunities we see ahead,” stated Brian M. Riley, President and Chief Executive Officer. “Both loan and deposit growth is strong compared to a year ago, despite the loan and deposit sale from the sale of our Yuma branch during the preceding quarter. We are focused on building the premier community banking franchise in Arizona and are positioning ourselves to grow, serve our customers and create strong returns for our shareholders.”
Fourth Quarter 2015 Financial Highlights:
- Net income increased 83.0% to $946,000 in the fourth quarter, compared to $517,000 in the fourth quarter 2014.
- The net interest margin remained strong at 4.29%.
- Non-performing assets decreased by $4.3 million to $6.4 million on continued resolution of problem credits and the sale of a large foreclosed asset. Non-performing assets dropped to their lowest level since 2008.
- Core deposits comprise 79.1% of total deposits at December 31, 2015.
- Tangible book value per share increased to $6.47 per share, compared to $5.99 a year ago.
No provision for loan losses was taken in the fourth quarter with net credit recoveries of $65,000. The allowance for loan losses totaled $3.1 million at December 31, 2015, or 1.42% of loans held for investment.
Total assets were $325.3 million at December 31, 2015, an increase of $8.5 million, or 2.7% from $316.8 million at December 31, 2014. Total loans held for investment were $216.4 million as compared to $209.0 million at December 31, 2014. Total loan comparisons were affected by the sale of loans from the Yuma branch of $11.1 million in the third quarter.
Total deposits were $282.8 million, an increase of $5.3 million, or 1.9%, from $277.5 million at December 31, 2014. Core deposits, defined as noninterest bearing demand, money market, NOW and savings accounts, increased 4.13% compared to a year earlier to $223.9 million at December 31, 2015. Total deposits and core deposit comparisons were affected by the sale of deposits from the Yuma branch of $16.5 million and $12.8 million, respectively. Core deposits now comprise 79.1% of total deposits.
Nonperforming assets were $6.4 million at December 31, 2015, a 56.8% decrease compared to $14.8 million at December 31, 2014. Nonperforming assets represented 1.97% of total assets at December 31, 2015, down from 4.67% at December 31, 2014.
Shareholder equity increased to $37.8 million at December 31, 2015, from $35.1 million at December 31, 2014. At December 31, 2015 tangible book value per share improved 8.0% to $6.47 per share compared to $5.99 per share at December 31, 2014.
Capital Management
Community banking organizations, including State Bank Corp. and Mohave State Bank, became subject to new capital requirements on January 1, 2015, and certain provisions of the new rules will be phased in from 2015 through 2019. The Company’s consolidated capital ratios and the Bank’s capital ratios exceeded the regulatory guidelines for a well-capitalized financial institution under the Basel III and Dodd Frank Wall Street Reform requirements at December 31, 2015. The Bank reported the following capital ratios at December 31, 2015:
| Common Equity Tier 1 Capital Ratio | 14.70 | % | |
| Tier 1 Leverage Ratio | 11.61 | % | |
| Tier 1 Capital Ratio | 14.70 | % | |
| Total Capital Ratio | 15.91 | % |
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 five full-service branches: two in Lake Havasu City, two in Kingman and one in Bullhead City, 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. | ||||||||||||||||||||
| Statement of Operations | ||||||||||||||||||||
| For the Quarter Ended | Year to Date | |||||||||||||||||||
| Dollars in thousands - Unaudited | 12/31/2015 | 9/30/2015 | 12/31/2014 | 12/31/2015 | 12/31/2014 | |||||||||||||||
| Statements of Operations | ||||||||||||||||||||
| Interest income | ||||||||||||||||||||
| Loans, including fees | $ | 3,019 | $ | 3,186 | $ | 2,759 | $ | 12,019 | $ | 10,858 | ||||||||||
| Securities | 212 | 209 | 207 | 858 | 811 | |||||||||||||||
| Fed funds and other | 19 | 14 | 26 | 65 | 70 | |||||||||||||||
| Total interest income | 3,250 | 3,409 | 2,992 | 12,942 | 11,739 | |||||||||||||||
| Interest expense | ||||||||||||||||||||
| Deposits | 151 | 153 | 141 | 581 | 552 | |||||||||||||||
| Borrowings | 1 | 1 | 14 | 26 | 56 | |||||||||||||||
| Total interest expense | 152 | 154 | 155 | 607 | 608 | |||||||||||||||
| Net interest income | 3,098 | 3,255 | 2,837 | 12,335 | 11,131 | |||||||||||||||
| Provision for loan losses | 425 | 75 | 885 | 695 | ||||||||||||||||
| Net interest income after loan loss provision | 3,098 | 2,830 | 2,762 | 11,450 | 10,436 | |||||||||||||||
| Noninterest income | ||||||||||||||||||||
| Service charges on deposits | 85 | 89 | 118 | 358 | 430 | |||||||||||||||
| Mortgage loan fees | 190 | 241 | 150 | 928 | 432 | |||||||||||||||
| Gain on sale of loans | 253 | 180 | 426 | 1,492 | 1,260 | |||||||||||||||
| Gain/(Loss) on securities | - | - | (8 | ) | (42 | ) | ||||||||||||||
| Other income | 174 | 886 | 209 | 1,435 | 761 | |||||||||||||||
| Total noninterest income | 702 | 1,396 | 903 | 4,205 | 2,841 | |||||||||||||||
| Noninterest expense | ||||||||||||||||||||
| Salaries and employee benefits | 1,483 | 1,447 | 1,387 | 5,913 | 5,310 | |||||||||||||||
| Net occupancy expense | 90 | 102 | 94 | 367 | 377 | |||||||||||||||
| Equipment expense | 44 | 47 | 37 | 175 | 152 | |||||||||||||||
| Data processing | 243 | 246 | 281 | 1,069 | 1,078 | |||||||||||||||
| Director fees & expenses | 66 | 55 | 62 | 231 | 202 | |||||||||||||||
| Insurance | 35 | 26 | 26 | 112 | 114 | |||||||||||||||
| Marketing & promotion | 69 | 57 | 82 | 334 | 332 | |||||||||||||||
| Professional fees | 180 | 82 | 85 | 434 | 485 | |||||||||||||||
| Office expense | 70 | 28 | 28 | 163 | 109 | |||||||||||||||
| Regulatory assessments | 32 | 106 | 113 | 353 | 444 | |||||||||||||||
| OREO and repossessed assets | 39 | 214 | 791 | 650 | 1,579 | |||||||||||||||
| Other expenses | 149 | 158 | 82 | 676 | 524 | |||||||||||||||
| Total noninterest expense | 2,500 | 2,568 | 3,068 | 10,477 | 10,706 | |||||||||||||||
| Income (loss) before provision (benefit) for income taxes | 1,300 | 1,658 | 597 | 5,178 | 2,571 | |||||||||||||||
| Provision (benefit) for income taxes | 354 | 591 | 80 | 1,712 | (2,825 | ) | ||||||||||||||
| Net Income (Loss) | $ | 946 | $ | 1,067 | $ | 517 | $ | 3,466 | $ | 5,396 | ||||||||||
| Per Share Data | ||||||||||||||||||||
| Basic EPS | $ | 0.16 | $ | 0.18 | $ | 0.09 | $ | 0.59 | $ | 0.92 | ||||||||||
| Diluted EPS | $ | 0.16 | $ | 0.18 | $ | 0.09 | $ | 0.59 | $ | 0.92 | ||||||||||
| Average shares outstanding | ||||||||||||||||||||
| Basic | 5,849,444 | 5,866,038 | 5,868,038 | 5,862,847 | 5,868,038 | |||||||||||||||
| Effect of dilutive shares | - | - | - | - | - | |||||||||||||||
| Diluted | 5,849,444 | 5,866,038 | 5,868,038 | 5,862,847 | 5,868,038 | |||||||||||||||
| State Bank Corp. | ||||||||
| Balance Sheets | ||||||||
| Dollars in thousands - Unaudited | 12/31/2015 | 12/31/2014 | ||||||
| Consolidated Balance Sheets | ||||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 1,899 | $ | 1,679 | ||||
| Interest bearing deposits | 4,167 | 3,459 | ||||||
| Overnight Funds | 29,250 | 31,740 | ||||||
| Held for maturity securities | 19 | 27 | ||||||
| Available for sale securities | 46,881 | 39,814 | ||||||
| Total cash and securities | 82,216 | 76,719 | ||||||
| Loans held for sale, before reserves | 4,457 | 1,300 | ||||||
| Gross loans held for investment | 216,357 | 209,012 | ||||||
| Loan loss reserve | (3,089 | ) | (2,954 | ) | ||||
| Total net loans | 217,725 | 207,358 | ||||||
| Premises and equipment, net | 8,195 | 9,892 | ||||||
| Other real estate owned | 4,247 | 9,307 | ||||||
| Federal Home Loan Bank and other stock | 2,126 | 1,917 | ||||||
| Company owned life insurance | 6,034 | 5,871 | ||||||
| Other assets | 4,776 | 5,721 | ||||||
| Total Assets | $ | 325,319 | $ | 316,785 | ||||
| Liabilities | ||||||||
| Non interest bearing demand | $ | 70,648 | $ | 62,612 | ||||
| Money market, NOW and savings | 153,156 | 152,308 | ||||||
| Time deposits <$100K | 25,703 | 25,929 | ||||||
| Time deposits >$100K | 33,329 | 36,644 | ||||||
| Total Deposits | 282,836 | 277,493 | ||||||
| Securities sold under repurchase agreements | 3,653 | 2,734 | ||||||
| Federal Home Loan Bank advances | - | - | ||||||
| Subordinated debt | - | 675 | ||||||
| Total Debt | 3,653 | 3,409 | ||||||
| Other Liabilities | 1,047 | 746 | ||||||
| Total Liabilities | 287,536 | 281,648 | ||||||
| Shareholders' Equity | ||||||||
| Common stock | 24,927 | 25,037 | ||||||
| Accumulated retained earnings | 12,881 | 9,866 | ||||||
| Accumulated other comprehensive income | (25 | ) | 234 | |||||
| Total shareholders equity | 37,783 | 35,137 | ||||||
| Total liabilities and shareholders' equity | $ | 325,319 | $ | 316,785 | ||||
| State Bank Corp. | ||||||||||||||||
| Five-Quarter Performance Summary | ||||||||||||||||
| For the Quarter Ended | ||||||||||||||||
| Dollars in thousands - Unaudited | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | |||||||||||
| Performance Highlights | ||||||||||||||||
| Earnings: | ||||||||||||||||
| Total revenue (Net int. income + nonint. income) | $ | 3,800 | $ | 4,651 | $ | 4,123 | $ | 3,965 | $ | 3,740 | ||||||
| Net interest income | $ | 3,098 | $ | 3,255 | $ | 3,118 | $ | 2,864 | $ | 2,837 | ||||||
| Provision for loan losses | $ | - | $ | 425 | $ | 350 | $ | 110 | $ | 75 | ||||||
| Noninterest income | $ | 702 | $ | 1,396 | $ | 1,005 | $ | 1,101 | $ | 903 | ||||||
| Noninterest expense | $ | 2,500 | $ | 2,568 | $ | 2,588 | $ | 2,821 | $ | 3,068 | ||||||
| Net income (loss) | $ | 946 | $ | 1,067 | $ | 772 | $ | 681 | $ | 517 | ||||||
| Per Share Data: | ||||||||||||||||
| Net income (loss), basic | $ | 0.16 | $ | 0.18 | $ | 0.13 | $ | 0.12 | $ | 0.09 | ||||||
| Net income (loss), diluted | $ | 0.16 | $ | 0.18 | $ | 0.13 | $ | 0.12 | $ | 0.09 | ||||||
| Cash dividends declared | $ | - | $ | - | $ | - | $ | 0.07 | $ | - | ||||||
| Book value | $ | 6.47 | $ | 6.34 | $ | 6.13 | $ | 6.04 | $ | 5.99 | ||||||
| Tangible book value | $ | 6.47 | $ | 6.34 | $ | 6.13 | $ | 6.04 | $ | 5.99 | ||||||
| Performance Ratios: | ||||||||||||||||
| Return on average assets | 1.17 | % | 1.26 | % | 0.93 | % | 0.85 | % | 0.65 | % | ||||||
| Return on average equity | 10.04 | % | 11.63 | % | 8.59 | % | 7.68 | % | 5.91 | % | ||||||
| Net interest margin, taxable equivalent | 4.29 | % | 4.31 | % | 4.22 | % | 4.09 | % | 4.07 | % | ||||||
| Average cost of funds | 0.21 | % | 0.21 | % | 0.21 | % | 0.21 | % | 0.22 | % | ||||||
| Average yield on loans | 5.45 | % | 5.42 | % | 5.30 | % | 5.18 | % | 5.33 | % | ||||||
| Efficiency ratio | 65.79 | % | 55.21 | % | 62.77 | % | 71.15 | % | 82.03 | % | ||||||
| Non-interest income to total revenue | 18.47 | % | 30.02 | % | 24.38 | % | 27.77 | % | 24.14 | % | ||||||
| Capital & Liquidity: | ||||||||||||||||
| Total equity to total assets (EOP) | 11.61 | % | 11.43 | % | 10.60 | % | 10.80 | % | 11.08 | % | ||||||
| Tangible equity to tangible assets | 11.61 | % | 11.43 | % | 10.60 | % | 10.80 | % | 11.08 | % | ||||||
| Total loans to total deposits | 78.07 | % | 78.00 | % | 78.83 | % | 74.50 | % | 75.01 | % | ||||||
| Mohave State Bank | ||||||||||||||||
| Common equity tier 1 ratio | 0.00 | % | 14.10 | % | 12.71 | % | 13.36 | % | ||||||||
| Tier 1 leverage ratio | 0.00 | % | 10.83 | % | 10.72 | % | 10.92 | % | 10.39 | % | ||||||
| Tier 1 risk based capital | 0.00 | % | 14.10 | % | 12.71 | % | 13.36 | % | 13.70 | % | ||||||
| Total risk based capital | 0.00 | % | 15.27 | % | 13.77 | % | 14.52 | % | 14.93 | % | ||||||
| Asset Quality: | ||||||||||||||||
| Gross charge-offs | $ | 4 | $ | 373 | $ | 449 | $ | 124 | $ | 351 | ||||||
| Net charge-offs (NCOs) | $ | (65 | ) | $ | 370 | $ | 415 | $ | 30 | $ | 313 | |||||
| NCO to average loans, annualized | -0.12 | % | 0.63 | % | 0.73 | % | 0.06 | % | 0.60 | % | ||||||
| Non-accrual loans | $ | 2,154 | $ | 4,570 | $ | 3,732 | $ | 6,444 | $ | 5,522 | ||||||
| Other real estate owned | $ | 4,246 | $ | 6,141 | $ | 6,696 | $ | 7,595 | $ | 9,307 | ||||||
| Repossessed assets | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||
| Non-performing assets (NPAs) | $ | 6,400 | $ | 10,711 | $ | 10,428 | $ | 14,039 | $ | 14,829 | ||||||
| NPAs to total assets | 1.97 | % | 3.29 | % | 3.08 | % | 4.28 | % | 4.67 | % | ||||||
| Loans >90 days past due | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||
| NPAs + 90 days past due | $ | 6,400 | $ | 10,711 | $ | 10,428 | $ | 14,039 | $ | 14,829 | ||||||
| NPAs + loans 90 days past due to total assets | 1.97 | % | 3.29 | % | 3.08 | % | 4.28 | % | 4.67 | % | ||||||
| Allowance for loan losses to total loans | 1.40 | % | 1.37 | % | 1.26 | % | 1.42 | % | 1.42 | % | ||||||
| Allowance for loan losses to NPAs | 48.27 | % | 28.23 | % | 28.47 | % | 21.61 | % | 19.92 | % | ||||||
| Period End Balances: | ||||||||||||||||
| Assets | $ | 325,319 | $ | 325,104 | $ | 339,109 | $ | 328,302 | $ | 316,785 | ||||||
| Total Loans (before reserves) | $ | 220,814 | $ | 220,768 | $ | 241,666 | $ | 217,245 | $ | 210,312 | ||||||
| Deposits | $ | 282,836 | $ | 283,035 | $ | 297,928 | $ | 287,237 | $ | 277,493 | ||||||
| Stockholders' equity | $ | 37,783 | $ | 37,166 | $ | 35,951 | $ | 35,470 | $ | 35,137 | ||||||
| Common stock market capitalization | $ | 36,981 | 35,166 | 27,873 | 29,575 | 29,340 | ||||||||||
| Full-time equivalent employees | 77 | 76 | 81 | 81 | 80 | |||||||||||
| Shares outstanding | 5,842,145 | 5,861,000 | 5,868,038 | 5,868,038 | 5,868,038 | |||||||||||
| Average Balances: | ||||||||||||||||
| Assets | $ | 323,157 | $ | 337,463 | $ | 333,387 | $ | 319,817 | $ | 318,835 | ||||||
| Earning assets | $ | 294,500 | $ | 307,376 | $ | 301,427 | $ | 285,722 | $ | 283,657 | ||||||
| Total Loans (before reserves) | $ | 221,705 | $ | 235,051 | $ | 228,847 | $ | 214,992 | $ | 207,130 | ||||||
| Deposits | $ | 280,558 | $ | 295,327 | $ | 291,980 | $ | 279,305 | $ | 277,947 | ||||||
| Other borrowings | $ | 3,846 | $ | 4,327 | $ | 4,817 | $ | 4,481 | $ | 4,481 | ||||||
| Stockholders' equity | $ | 37,686 | 36,689 | 35,947 | 35,454 | 34,975 | ||||||||||
| Shares outstanding, basic - wtd | 5,849,444 | 5,866,038 | 5,868,038 | 5,868,038 | 5,868,038 | |||||||||||
| Shares outstanding, diluted - wtd | 5,849,444 | 5,866,038 | 5,868,038 | 5,868,038 | 5,868,038 | |||||||||||
Contact: Brian M. Riley, President & CEO Craig Wenner, EVP & CFO 928 855 0000 www.mohavestbank.com
