LAKE HAVASU CITY, Ariz., April 30, 2010 (GLOBE NEWSWIRE) -- State Bank Corp. (OTCBB:SBAZ) ("Company"), the holding company for Mohave State Bank ("Bank"), today announced net income of $129,000, or $0.03 per diluted share, for the quarter ended March 31, 2010 as compared to a net operating loss of $1.04 million, or $0.27 per diluted share, for the same period of 2009.
First quarter 2010 highlights include:
-
Capital ratio compliance – At March 31, 2010, the Bank achieved all of the capital ratio requirements of its regulatory Consent Order by reaching a tier 1 leverage ratio of 9.32 percent and a total risk-based capital ratio of 13 percent.
-
Reduction in FHLB borrowing – The Company retired another $5 million of advances from the Federal Home Loan Bank during the first quarter and now has only $2 million outstanding.
-
Improvement in primary liquidity measures – The loan to deposit ratio at March 31, 2010 was well within industry norms at 80.4% and the Bank's primary liquidity ratio increased to 12.5% during the quarter.
- Growth in noninterest bearing deposits – The Company increased noninterest bearing deposits by $6.0 million, or 15.7 percent, in the first quarter of 2010 as it continues to grow core customer relationships.
"In the face of a very challenging business environment, we continue to make incremental progress. We achieved compliance with the capital and liquidity components of our regulatory Consent Order while continuing to grow core customer relationships," commented Brian M. Riley, President & CEO. "There are certainly signs of economic improvement within our markets. We are hopeful these will lead to further stabilization in real estate prices and better performance within our loan portfolio."
The Company provided $1.3 million to its loan loss reserve during the first quarter of 2010 as compared to $2.6 million in the same period of 2009. Net credit losses during the first quarter of 2010 were $2.0 million as compared to $2.8 million during the same period of 2009.
"Until we have sustained operating improvement, we continue to focus on controlling expenses. Controllable expenses were $1.8 million in the first quarter of 2010, a decrease of $357,000, or 16.4 percent, from the same period of 2009. Our staff does an amazing job looking for opportunities to reduce operating costs and be more efficient," stated Brian Riley, President & CEO.
Total assets were $370.6 million at March 31, 2010, a decrease of $2.5 million from $373.1 million at December 31, 2009. To maintain its capital ratios, the Company intends to reduce the size of its balance sheet over the next few quarters. Total loans were $250.8 million at March 31, 2010 as compared to $252.4 million at December 31, 2009. Total deposits were $313.1 million at March 31, 2010 as compared to $311.7 million at December 31, 2009.
Nonperforming assets were $28.6 million at March 31, 2010, a slight increase from $26.2 million at December 31, 2009. Nonperforming assets represented 7.7 percent of total assets at March 31, 2010 as compared to 7.0 percent at December 31, 2009. The allowance for loan and lease losses totaled $8.2 million, or 3.3 percent of total loans, at March 31, 2010. The Company continues to carefully monitor its level of loss reserves given a weak economic environment.
Shareholder equity was $34.3 million at March 31, 2010, unchanged from December 31, 2009. The Bank must meet certain minimum capital requirements to satisfy federal and state laws. The following table provides the Bank's capital ratio at March 31, 2010:
|
Actual Ratio |
Ratio to be well capitalized |
Consent Order Requirement |
|
| Leverage Ratio | 9.32% | 5.00% | 9.25% |
| Tier 1 Capital to Risk-Weighted Assets | 11.77% | 6.00% | N/A |
| Total Capital to Risk-Weighted Assets | 13.04% | 10.00% | 12.00% |
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 | 3/31/2010 | 12/31/2009 | 9/30/2009 | 6/30/2009 | 3/31/2009 |
| Performance Highlights | |||||
| Earnings: | |||||
| Total revenue (Net int. income + nonint. income) | $ 3,767 | $ 3,749 | $ 3,659 | $ 3,859 | $ 3,668 |
| Net interest income | $ 2,979 | $ 3,290 | $ 3,165 | $ 3,267 | $ 3,169 |
| Provision for loan losses | $ 1,315 | $ 1,250 | $ 600 | $ 2,900 | $ 2,600 |
| Noninterest income | $ 788 | $ 459 | $ 494 | $ 592 | $ 499 |
| Noninterest expense | $ 2,357 | $ 3,744 | $ 2,690 | $ 2,421 | $ 2,690 |
| Net income (loss) | $ 129 | $ (356) | $ 236 | $ (950) | $ (1,037) |
| Per Share Data: | |||||
| Net income (loss), basic | $ 0.03 | $ (0.09) | $ 0.06 | $ (0.25) | $ (0.27) |
| Net income (loss), diluted | $ 0.03 | $ (0.09) | $ 0.06 | $ (0.25) | $ (0.27) |
| Cash dividends declared | $ -- | $ -- | $ -- | $ -- | $ -- |
| Book value | $ 8.91 | $ 8.91 | $ 9.07 | $ 8.86 | $ 9.21 |
| Tangible book value | $ 8.91 | $ 8.91 | $ 9.07 | $ 8.86 | $ 9.21 |
| Performance Ratios: | |||||
| Return on average assets | 0.14% | -0.38% | 0.25% | -1.04% | -1.13% |
| Return on average equity | 1.50% | -4.10% | 2.74% | -11.13% | -11.53% |
| Net interest margin, taxable equivalent | 3.67% | 4.01% | 3.87% | 4.01% | 3.81% |
| Average cost of funds | 1.46% | 1.54% | 1.70% | 1.76% | 1.82% |
| Average yield on loans | 5.92% | 6.41% | 6.26% | 6.07% | 5.82% |
| Efficiency ratio | 62.57% | 99.87% | 74.14% | 63.18% | 72.68% |
| Non-interest income to total revenue | 20.92% | 12.24% | 13.50% | 15.34% | 13.60% |
| Capital & Liquidity: | |||||
| Total equity to total assets (EOP) | 9.27% | 9.20% | 9.36% | 9.51% | 9.74% |
| Tangible equity to tangible assets | 9.27% | 9.20% | 9.36% | 9.51% | 9.74% |
| Total loans to total deposits | 80.42% | 81.55% | 83.87% | 93.14% | 100.63% |
| Mohave State Bank | |||||
| Tier 1 leverage ratio | 9.32% | 9.07% | 9.05% | 9.15% | 9.41% |
| Tier 1 risk based capital | 11.77% | 11.41% | 11.12% | 10.87% | 10.94% |
| Total risk based capital | 13.04% | 12.68% | 12.39% | 12.13% | 12.20% |
| Asset Quality: | |||||
| Gross charge-offs | $ 2,076 | $ 1,244 | $ 813 | $ 1,085 | $ 2,793 |
| Net charge-offs (NCOs) | $ 2,019 | $ 1,128 | $ 813 | $ 1,085 | $ 2,791 |
| NCO to average loans, annualized | 3.19% | 1.76% | 1.24% | 1.56% | 3.89% |
| Non-accrual loans | $ 9,215 | $ 6,698 | $ 9,846 | $ 12,913 | $ 22,984 |
| Other real estate owned | $ 19,328 | $ 19,501 | $ 21,465 | $ 16,936 | $ 5,085 |
| Repossessed assets | $ 50 | $ 50 | $ 50 | $ 50 | $ -- |
| Non-performing assets (NPAs) | $ 28,593 | $ 26,249 | $ 31,361 | $ 29,899 | $ 28,069 |
| NPAs to total assets | 7.72% | 7.03% | 8.40% | 8.33% | 7.71% |
| Loans >90 days past due | $ 27 | $ 523 | $ 3,221 | $ 5,195 | $ -- |
| NPAs + 90 days past due | $ 28,620 | $ 26,772 | $ 34,582 | $ 35,094 | $ 28,069 |
| NPAs + loans 90 days past due to total assets | 7.72% | 7.17% | 9.26% | 9.78% | 7.71% |
| Allowance for loan losses to total loans | 3.26% | 3.50% | 3.42% | 3.33% | 2.51% |
| Allowance for loan losses to NPAs | 28.69% | 33.93% | 28.01% | 30.09% | 25.59% |
| Period End Balances: | |||||
| Assets | $ 370,592 | $ 373,143 | $ 373,290 | $ 358,916 | $ 363,860 |
| Total Loans (before reserves) | $ 251,786 | $ 254,188 | $ 257,059 | $ 269,611 | $ 285,874 |
| Deposits | $ 313,075 | $ 311,714 | $ 306,485 | $ 289,467 | $ 284,098 |
| Stockholders' equity | $ 34,346 | $ 34,312 | $ 34,924 | $ 34,134 | $ 35,430 |
| Common stock market capitalization | $ 13,491 | $ 13,483 | $ 12,520 | $ 24,076 | $ 30,190 |
| Full-time equivalent employees | 80 | 80 | 80 | 78 | 85 |
| Shares outstanding | 3,854,714 | 3,852,199 | 3,852,199 | 3,852,199 | 3,845,808 |
| Average Balances: | |||||
| Assets | $ 376,792 | $ 379,442 | $ 374,297 | $ 366,362 | $ 367,340 |
| Earning assets | $ 333,505 | $ 336,009 | $ 335,828 | $ 334,335 | $ 342,036 |
| Total Loans (before reserves) | $ 252,781 | $ 256,326 | $ 261,220 | $ 277,385 | $ 286,918 |
| Deposits | $ 315,849 | $ 314,279 | $ 302,011 | $ 287,523 | $ 280,841 |
| Other borrowings | $ 25,474 | $ 28,195 | $ 36,739 | $ 42,413 | $ 49,654 |
| Stockholders' equity | $ 34,448 | $ 34,760 | $ 34,488 | $ 34,134 | $ 36,002 |
| Shares outstanding, basic - wtd | 3,853,876 | 3,852,199 | 3,852,199 | 3,851,567 | 3,845,808 |
| Shares outstanding, diluted - wtd | 3,856,796 | 3,854,714 | 3,855,003 | 3,855,806 | 3,864,126 |
| State Bank Corp. | ||
| Balance Sheets | ||
| Dollars in thousands - Unaudited | 3/31/2010 | 12/31/2009 |
| Consolidated Balance Sheets | ||
| Assets | ||
| Cash and cash equivalents | $ 5,789 | $ 5,202 |
| Fed funds sold | 29,000 | 21,000 |
| Held for maturity securities | 1,057 | 1,086 |
| Available for sale securities | 45,900 | 54,740 |
| Total cash and securities | 81,746 | 82,028 |
| Loans held for sale, before reserves | 1,027 | 1,762 |
| Gross loans held for investment | 250,759 | 252,426 |
| Loan loss reserve | (8,203) | (8,907) |
| Total net loans | 243,583 | 245,281 |
| Premises and equipment, net | 11,163 | 11,218 |
| Other real estate owned | 19,328 | 19,501 |
| Federal Home Loan Bank and other stock | 3,158 | 3,158 |
| Company owned life insurance | 5,190 | 5,147 |
| Other assets | 6,424 | 6,810 |
| Total Assets | $ 370,592 | $ 373,143 |
| Liabilities | ||
| Non interest bearing demand | $ 44,427 | $ 38,409 |
| Money market, NOW and savings | 128,341 | 126,416 |
| Time deposits <$100K | 71,693 | 76,974 |
| Time deposits >$100K | 68,614 | 69,915 |
| Total Deposits | 313,075 | 311,714 |
| Securities sold under repurchase agreements | 18,459 | 17,940 |
| Federal Home Loan Bank advances | 2,000 | 7,000 |
| Subordinated debt | 1,812 | 1,112 |
| Total Debt | 22,271 | 26,052 |
| Other Liabilities | 900 | 1,065 |
| Total Liabilities | 336,246 | 338,831 |
| Shareholders' Equity | ||
| Common stock | 21,694 | 21,644 |
| Accumulated retained earnings | 12,137 | 12,009 |
| Accumulated other comprehensive income | 515 | 659 |
| Total shareholders equity | 34,346 | 34,312 |
| Total liabilities and shareholders' equity | $ 370,592 | $ 373,143 |
| State Bank Corp. | ||
| Statement of Operations | ||
| For the Quarter Ended | ||
| Dollars in thousands - Unaudited | 3/31/2010 | 3/31/2009 |
| Statements of Operations | ||
| Interest income | ||
| Loans, including fees | $ 3,741 | $ 4,172 |
| Securities | 471 | 498 |
| Fed funds and other | 16 | 2 |
| Total interest income | 4,228 | 4,672 |
| Interest expense | ||
| Deposits | 1,082 | 1,294 |
| Borrowings | 168 | 209 |
| Total interest expense | 1,250 | 1,503 |
| Net interest income | 2,978 | 3,169 |
| Provision for loan losses | 1,315 | 2,600 |
| Net interest income after loan loss provision | 1,663 | 569 |
| Noninterest income | ||
| Service charges on deposits | 172 | 183 |
| Mortgage loan fees | 16 | 13 |
| Gain on sale of loans | 143 | 224 |
| Other income | 458 | 86 |
| Total noninterest income | 789 | 506 |
| Noninterest expense | ||
| Salaries and employee benefits | 1,114 | 1,355 |
| Net occupancy expense | 90 | 84 |
| Equipment expense | 53 | 62 |
| Data processing | 274 | 318 |
| Director fees & expenses | 64 | 71 |
| Insurance | 17 | 22 |
| Marketing & promotion | 92 | 102 |
| Professional fees | 57 | 38 |
| Office expense | 57 | 60 |
| Regulatory assessments | 232 | 126 |
| OREO and repossessed assets | 242 | 324 |
| Other expenses | 65 | 109 |
| Total noninterest expense | 2,357 | 2,671 |
| Income (loss) before provision (benefit) for income taxes | 95 | (1,596) |
| Provision (benefit) for income taxes | (34) | (559) |
| Net Income (Loss) | $ 129 | $ (1,037) |
| Per Share Data | ||
| Basic EPS | $ 0.03 | $ (0.27) |
| Diluted EPS | $ 0.03 | $ (0.27) |
| Average shares outstanding | ||
| Basic | 3,853,876 | 3,845,808 |
| Effect of dilutive shares | 2,920 | 18,328 |
| Diluted | 3,856,796 | 3,864,136 |