Stonegate Bank Reports Net Income of $2.5 Million for Fourth
Quarter 2013
FORT LAUDERDALE, FL--(Marketwired - Jan 17, 2014) - Stonegate
Bank (OTCBB: SGBK)
Fourth Quarter 2013
Highlights:
- $1.1 billion in total assets at December 31, 2013
- Net income of $2,540,000 for the fourth quarter of
2013
- Net income of $9,317,000 for fiscal year 2013
- 32 consecutive quarters of profitability
- 2013 fourth quarter average net interest margin of
3.74%
- Tier 1 risk based capital ratio of 15.3% at December 31,
2013
- Closed Florida Shores acquisition on January 15, 2014 creating
a $1.7 billion bank
- Total loan growth of 11.0% in 2013
Stonegate Bank (OTCBB: SGBK) reported net income of $2,540,000,
or 30.8 cents per share in the fourth quarter of 2013, as compared
to net income of $2,164,000 or 26.2 cents per share in the fourth
quarter of 2012. The Bank increased earnings year over year even
though merger related expenses in 2013 were approximately $900,000.
The Bank earned $9,317,000 in 2013 or $1.13 per share, as compared
to $9,082,000 or $1.10 per share in 2012.
Income and
Expenses: Total interest income decreased from $12.2 million
in the fourth quarter of 2012 to $11.0 million in the fourth
quarter of 2013. Total interest expense decreased from $1.8 million
in the fourth quarter of 2012 compared to $1.5 million in the
fourth quarter of 2013. This occurred even though total deposits
increased $189 million during 2013. Further, the Bank's cost of
funds decreased 30 basis points since December 2012. Net interest
income decreased from $10.3 million in the fourth quarter of 2012
to $9.5 million in the fourth quarter of 2013.
Total non-interest income increased to $2,146,000 in the fourth
quarter of 2013 from $697,000 in the fourth quarter of 2012. Total
non-interest income improved from $3,625,000 in 2012 to $4,532,000,
or 25%, in 2013. The largest components of this improvement were
increased service charges and overdraft fees, recovery on the sale
of REO, and other loan related fees.
Non-interest expense increased to $6.5 million for the fourth
quarter of 2013 from $5.8 million for the fourth quarter of 2012.
But for merger related expenses in the fourth quarter of 2013,
non-interest expenses would have remained unchanged.
Margin and Cost of
Funds: Total cost of funds declined from a 0.68% September
2013 month-to-date average to a 0.61% December 2013 month-to-date
average. Stonegate Bank's net interest margin declined from a
fourth quarter 2012 average of 4.76% to 3.74% fourth quarter 2013
average. The increase in cash of nearly $142 million and a decrease
of $41 million in the investment portfolio largely accounted for
the decrease in the net interest margin as well as timing
differences on the realization of accretable discounts.
Balance Sheet and
Capital: Total assets grew organically from $944 million on
December 31, 2012 to $1.119 billion on December 31, 2013, a $175
million increase. Total loans increased $80 million from $732
million on December 31, 2012 to $812 million on December 31, 2013.
Total deposits increased $189 million from $746 million on December
31, 2012 to $935 million on December 31, 2013. Non-interest bearing
deposits represented 19.4% of total deposits. Total capital grew
from $126.7 million on December 31, 2012 to $131.4 million on
December 31, 2013. The undiluted book value of common shares of
Stonegate Bank was $15.95 per share on December 31, 2013.
Asset
Quality:
Total Stonegate Bank |
|
|
|
|
|
(dollars in thousands) |
|
September 30, 2013 |
|
December 31, 2013 |
Total loans |
|
$ |
780,207 |
|
$ |
812,009 |
30 days past due |
|
|
578 |
|
|
202 |
60 - 89 days |
|
|
757 |
|
|
0 |
NPAs* |
|
|
8,423 |
|
|
6,627 |
REO |
|
|
2,962 |
|
|
2,120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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 and real estate owned. Overall,
non-performing loans represent 0.81% of total loans and 0.59% of
total assets.
Management believes all non-performing assets and REO are
written down or reserved to fair market value. Real estate owned
declined from $2.9 million on September 30, 2013 to $2.1 million on
December 31, 2013. The Bank's loan loss reserve was $17.3 million
on December 31, 2013. This reserve represents 261% of all
non-performing loans and 2.13% of total loans. Total loans past due
more than 30 days decreased from $1,335,000 on September 30, 2013
to $202,000 on December 31, 2013.
Management
Comments:
"First, I would like to welcome all the customers and investors
of Florida Shores Southeast and Southwest to Stonegate Bank. The
closing of the Florida Shores merger earlier this week creates some
exciting opportunities for the combined bank as we move forward
together in 2014," said Dave Seleski, President and Chief Executive
Officer. "As for Stonegate, we ended the year with our strongest
quarter. After a very slow start, including negative loan growth in
the first quarter, we were able to achieve all of our goals in 2013
which included 11% loan growth, an improvement in percentage of
non-interest bearing deposits to total deposits, higher earnings,
and improved credit quality. Some of this is a reflection of the
continued improvement in the Florida economy but most of the credit
goes to the employees that really stepped up to the plate. Even
more remarkable is that this was achieved with the distraction and
the cost of the merger with Florida Shores which could have
tempered our overall performance."
"The two biggest challenges and opportunities for Stonegate in
2014 are the data processing conversion of Florida Shores on April
25th and our pending NASDAQ listing. These are exciting times at
Stonegate and I look forward to continuing to build our franchise
in 2014," 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 December 31, 2013 |
|
(In Thousands) |
|
Assets |
|
|
|
Cash and due from banks |
|
$ |
190,226 |
|
Federal funds sold |
|
|
10,000 |
|
Investment securities |
|
|
71,639 |
|
|
|
|
|
|
Commercial loans |
|
|
128,654 |
|
Commercial real estate loans - owner occupied |
|
|
179,643 |
|
Commercial real estate loans - other |
|
|
265,223 |
|
Construction loans |
|
|
64,805 |
|
Residential 1 - 4 family loans |
|
|
122,351 |
|
HELOCs |
|
|
40,691 |
|
Consumer and other loans |
|
|
10,642 |
|
|
Gross
loans |
|
|
812,009 |
|
Allowance for loan losses |
|
|
(17,307 |
) |
|
Net
loans |
|
|
794,702 |
|
|
|
|
|
|
Fixed assets |
|
|
12,310 |
|
Other assets |
|
|
40,856 |
|
|
Total
assets |
|
$ |
1,119,733 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Non-interest bearing deposits |
|
$ |
181,281 |
|
NOW accounts |
|
|
127,124 |
|
Money market accounts |
|
|
392,108 |
|
Core reciprocal deposits |
|
|
146,206 |
|
Savings accounts |
|
|
6,543 |
|
Certificates of deposit |
|
|
82,215 |
|
|
Total
deposits |
|
|
935,477 |
|
Repurchase Agreements |
|
|
22,733 |
|
FHLB and other borrowings |
|
|
20,000 |
|
Other Liabilities |
|
|
10,061 |
|
|
Total
liabilities |
|
|
988,271 |
|
|
|
|
|
|
Total capital |
|
|
131,462 |
|
|
Total
liabilities and capital |
|
$ |
1,119,733 |
|
|
|
|
|
|
|
|
|
|
|
|
|
STONEGATE BANK |
Income Statement |
For Period Ended December 31, 2013 |
(In Thousands) |
Interest income |
|
$ |
42,692 |
Interest expense |
|
|
6,672 |
|
Net interest income |
|
|
36,020 |
Less: Provision for loan losses |
|
|
2,444 |
|
Net interest income after provision for loan
losses |
|
|
33,576 |
Non-interest income |
|
|
4,532 |
Realized gains (losses) on AFS securities |
|
|
902 |
|
|
|
|
Less: Salaries and benefits expense |
|
|
13,909 |
|
|
Occupancy and equipment expense |
|
|
3,646 |
|
|
Data
processing expense |
|
|
553 |
|
|
Legal
and professional expenses |
|
|
2,777 |
|
|
Loan
and OREO expenses |
|
|
346 |
|
|
Other
expense |
|
|
3,172 |
|
Total non-interest income |
|
|
24,403 |
|
|
|
|
Net income before income taxes |
|
|
14,607 |
Income taxes |
|
|
5,290 |
|
Net income |
|
$ |
9,317 |
|
|
|
|
|
|
|
|
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
Stonegate Bank (Fort Lauderdale (NASDAQ:SGBK)
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