Stonegate Bank Reports Net Income of $2.2 Million for Third Quarter 2013
23 Oktober 2013 - 6:13PM
Marketwired
Stonegate Bank Reports Net Income of $2.2 Million for Third Quarter
2013
FORT LAUDERDALE, FL--(Marketwired - Oct 23, 2013) - Stonegate
Bank (OTCBB: SGBK)
Third Quarter 2013
Highlights:
- Total assets of $1.086 billion
- Net income of $2,219,000 for the third quarter of
2013
- 31 consecutive quarters of profitability
- 2013 third quarter average net interest margin of
3.65%
- Tier 1 risk based capital ratio of 15.7% at September 30,
2013
- Signed definitive agreement to purchase two Florida Shores
Banks
- Total loan growth of 6.6% in the first nine months of 2013
Stonegate Bank (OTCBB: SGBK) reported net income of $2,219,000
or 26.9 cents per share for the third quarter of 2013, as compared
to net income of $2,426,000 or 29.4 cents per share in the third
quarter of 2012. The Bank earned $6,777,000 for the first nine
months in 2013 or 82.2 cents per share as compared to $6,918,000 or
83.9 cents per share in the first nine months of 2012.
Income and
Expenses: Total interest income increased from $10.7 million
in the third quarter of 2012 to $10.8 million in the third quarter
of 2013. Total interest expense decreased from $1.8 million in the
third quarter of 2012 compared to $1.6 million in the third quarter
of 2013. This occurred even though total deposits increased $141
million period to period. Further, the Bank's cost of funds
decreased 24 basis points period to period. This resulted in net
interest income increasing from $8.9 million in the third quarter
of 2012 to $9.2 million in the third quarter of 2013.
Total non-interest income declined slightly to $770,000 in the
third quarter of 2013 from $777,000 in the third quarter of 2012.
Realized gains on the sale of securities was $640,000 in the third
quarter of 2012 versus a realized loss of $4,000 in the third
quarter of 2013.
Non-interest expense increased slightly to $6.1 million for the
third quarter of 2013 from $5.8 million for the third quarter of
2012. Approximately $225,000 of this increase is attributable to
merger related expenses.
Margin and Cost of
Funds: Total cost of funds declined from a 0.92% September
2012 month-to-date average to a 0.68% September 2013 month-to-date
average. Stonegate Bank's net interest margin declined from a third
quarter 2012 average of 4.25% to 3.65% third quarter 2013 average.
The increase in cash of approximately $100 million and the decrease
in the investment portfolio of $45 million largely accounted for
the decrease in the net interest margin year over year.
Balance Sheet and
Capital: Total assets grew from $942 million on September
30, 2012 to $1.086 billion on September 2013, a $144 million
increase. Total loans increased $88 million from $692 million on
September 30, 2012 to $780 million on September 30, 2013. Total
deposits increased $141 million from $747 million on September 30,
2012 to $888 million on September 30, 2013. Non-interest bearing
deposits represent 17.1% of total deposits. Total capital grew from
$125.1 million on September 30, 2012 to $128.9 million on September
30, 2013. The undiluted book value of common shares of Stonegate
Bank was $15.64 per share on September 30, 2013.
Asset
Quality:
|
Total Stonegate Bank - September 30, 2013 |
|
|
(dollars in thousands) |
|
|
|
|
Total
loans |
|
$ |
780,207 |
|
|
30
days past due |
|
|
578 |
|
|
60 -
89 days |
|
|
757 |
|
|
NPAs* |
|
|
8,423 |
|
|
REO |
|
|
2,962 |
|
*Approximately 34% of the nonaccrual loans are currently making
payments.
The chart above shows the various categories and ending balances
of past due loans, nonaccrual loans as well as real estate owned.
Overall, non-performing loans represent 1.07% of total loans and
0.77% of total assets.
Management believes all non-performing assets and REO are
written down to fair market value. Real estate owned remained
largely unchanged from $2.8 million on June 30, 2013 to $2.9
million on September 30, 2013.
The Bank's loan loss reserve was $16.7 million on September 30,
2013. This reserve represents 198% of all non-performing loans and
2.14% of total loans. Total loans past due more than 30 days
decreased from $2.5 million on June 30, 2013 to $1.3 million on
September 30, 2013.
Management
Comments: "Our announcement in September that Stonegate had
signed a definitive agreement to acquire both Florida Shores Banks
has overshadowed our overall operating results in the third quarter
and the year as a whole," said Dave Seleski, President and Chief
Executive Officer. "That being said, we are on track to meet many
of our earnings and loan growth goals for the year without the
added benefit of the pending mergers. Earnings remain strong
despite margin pressure. Overall loan growth of 7% (9%
annualized) has certainly helped. Furthermore, we have been able to
grow loans without significantly increasing non-interest expense.
Strategically, in an effort to reduce the Bank's exposure to market
volatility, we reduced the size of our investment portfolio
substantially. This decrease in portfolio risk was offset by a
reduction in the net interest margin as bonds were shifted to
interest-bearing cash. Most importantly, we are seeing growth in
all of our markets and I think this is a reflection of the
continued improvement in the Florida economy."
"Finally, applications and appropriate paperwork for the
proposed mergers with both Florida Shores Banks were filed with the
Office of Financial Regulation, the FDIC and the Federal Reserve
Bank in September. We are very excited about this pending
transaction and look forward to the significant value it will add
to the franchise and to the shareholders of Stonegate Bank," added
Seleski.
The Bank cautions that certain statements contained in this
press release are "forward-looking statements" as defined under the
Private Securities Litigation Reform Act of 1995, which statements
are made pursuant to the "safe harbor" provisions of such
Act. These forward-looking statements describe future plans or
strategies and may include the Bank's expectations of future
financial results. The words "believe," "expect,"
"anticipate," "estimate," "project," and similar expressions
identify forward-looking statements. The Bank's ability to
predict results or the effect of future plans or strategies or
qualitative or quantitative changes is inherently
uncertain. Actual results may differ materially from stated
expectations. Specific factors include, but are not limited
to, changes in general market interest rates, changes in general
economic conditions and those specific to the Bank's market area,
legislative/regulatory changes, monetary and fiscal policies of the
U.S. Treasury and the Federal Reserve, changes in the quality or
composition of the Bank's loan portfolios, demand for loan
products, changes in deposit flows, real estate values, and
competition and other economic, competitive, governmental,
regulatory and technological factors affecting the Bank's
operations, pricing, products and services. The Bank makes
periodic filings to the Federal Deposit Insurance Corporation which
contain various Bank financial information, copies of which are
available from the Bank without charge. The Bank disclaims any
obligation to update any such factors or to publicly announce the
results of any revisions to any forward-looking statements
contained in this release to reflect future events or
developments.
|
|
|
|
STONEGATE BANK |
|
Balance Sheet |
|
As of September 30, 2013 |
|
|
|
(In Thousands) |
|
|
|
|
|
|
|
Assets |
|
|
|
|
Cash and due from banks |
|
$ |
184,716 |
|
Federal funds sold |
|
|
10,000 |
|
Investment securities |
|
|
71,176 |
|
|
|
|
|
|
Commercial loans |
|
|
126,359 |
|
Commercial real estate loans - owner occupied |
|
|
175,102 |
|
Commercial real estate loans - other |
|
|
250,876 |
|
Construction loans |
|
|
63,822 |
|
Residential 1 - 4 family loans |
|
|
120,659 |
|
HELOCs |
|
|
34,580 |
|
Consumer and other loans |
|
|
8,809 |
|
|
Gross
loans |
|
|
780,207 |
|
Allowance for loan losses |
|
|
(16,727 |
) |
|
Net
loans |
|
|
763,480 |
|
|
|
|
|
|
Fixed assets |
|
|
12,442 |
|
Other assets |
|
|
44,348 |
|
|
Total
assets |
|
$ |
1,086,162 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Non-interest bearing deposits |
|
$ |
152,145 |
|
NOW accounts |
|
|
108,309 |
|
Money market accounts |
|
|
372,264 |
|
Core reciprocal deposits |
|
|
169,693 |
|
Savings accounts |
|
|
6,708 |
|
Certificates of deposit |
|
|
79,548 |
|
|
Total
deposits |
|
|
888,667 |
|
Repurchase Agreements |
|
|
35,192 |
|
FHLB and other borrowings |
|
|
20,000 |
|
Other Liabilities |
|
|
13,360 |
|
|
Total
liabilities |
|
|
957,219 |
|
|
|
|
|
|
Total capital |
|
|
128,943 |
|
|
Total
liabilities and capital |
|
$ |
1,086,162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STONEGATE BANK |
Income Statement |
For Period Ended September 30, 2013 |
|
(In Thousands) |
|
|
|
|
|
Interest income |
|
$ |
31,669 |
Interest expense |
|
|
5,152 |
|
Net
interest income |
|
|
26,517 |
Less: Provision for loan losses |
|
|
1,376 |
|
Net
interest income after provision for loan losses |
|
|
25,141 |
Non-interest income |
|
|
2,386 |
Realized gains (losses) on AFS securities |
|
|
902 |
|
|
|
|
Less: Salaries and benefits expense |
|
|
10,314 |
|
Occupancy and equipment expense |
|
|
2,781 |
|
Data
processing expense |
|
|
377 |
|
Legal
and professional expenses |
|
|
1,618 |
|
Loan
and OREO expenses |
|
|
487 |
|
Other
expense |
|
|
2,256 |
|
Total
non-interest income |
|
|
17,833 |
|
|
|
|
Net income before income taxes |
|
|
10,596 |
Income taxes |
|
|
3,819 |
|
Net
income |
|
$ |
6,777 |
|
|
|
|
MEDIA CONTACT:
Sissy DeMaria (Email Contact) Suzanne Schmidt (Email Contact) Kreps
DeMaria (305) 663-3543 INVESTOR RELATIONS: Dave
Seleski (Email Contact) Stonegate Bank (954) 315-5510
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