|By Marketwired .||
|January 28, 2013 01:27 PM EST||
FORT LAUDERDALE, FL -- (Marketwire) -- 01/28/13 -- Stonegate Bank (OTCBB: SGBK)
Fourth Quarter 2012 Highlights:
- Net income of $2,164,000 for the fourth quarter of 2012
- Total assets grew to $945 million from $855 million year over year
- 28 straight quarters of profitability
- 4.76% fourth quarter net interest margin
- Tier 1 risk based capital ratio of 16% at December 31, 2012
- Total organic loan growth of 22% in 2012
- 0.99% return on assets in 2012
Stonegate Bank (OTCBB: SGBK) reported net income of $2,164,000 or 26.2 cents per share for the fourth quarter of 2012, as compared to net income of $2,800,000 or 34 cents per share in the fourth quarter of 2011. The Bank earned $9,082,000 or $1.10 per share in 2012, as compared to $11,544,000 or $1.40 per share in 2011.
Income and Expenses:
Total interest income increased from $10.5 million in the fourth quarter of 2011 to $12.2 million in the fourth quarter of 2012. This was the result of an increase in $132 million in total loans period to period. Total interest expense declined from $1.94 million in the fourth quarter of 2011 to $1.87 million in the fourth quarter of 2012. This occurred even though total deposits increased $72 million period to period. Net interest income improved from $8.6 million in the fourth quarter of 2011 to $10.3 million in the fourth quarter of 2012.
Excluding bargain purchase gains in 2011, total non-interest income decreased to $697,000 in the fourth quarter of 2012 from $835,000 in the fourth quarter of 2011. Year to date non-interest income increased from $2,680,000 in 2011 to $3,625,000 in 2012, excluding 2011 bargain purchase gains. The Bank realized security gains of $234,000 in the fourth quarter of 2012. Per plan, these gains were taken largely to reduce the overall size of the investment portfolio and to shorten the duration of the overall portfolio.
Non-interest expense decreased from $6.4 million for the fourth quarter of 2011 to $5.8 million for the fourth quarter of 2012. Total year to date non-interest expense decreased from $23.6 million in 2011 to $23.1 million in 2012.
Margin and Cost of Funds:
Total cost of funds, as compared to the September month-to date average, remained flat at a .92% December month-to-date average. Stonegate Bank's net interest margin increased from a third quarter 2012 average of 4.25% to a fourth quarter average of 4.76%. The increase was primarily the result of the Bank's realization of various fair market value discounts on acquired assets.
Balance Sheet and Capital:
Total assets grew from $855 million on December 31, 2011 to $945 million on December 31, 2012, a $90 million increase. Total loans increased $132 million from $600 million on December 31, 2011 to $732 million on December 31, 2012. Total deposits increased $72 million from $674 million on December 31, 2011 to $746 million on December 31, 2012. Non-interest bearing deposits represent 16.9% of total deposits. Total capital grew from $118 million on December 31, 2011 to $127 million on December 31, 2012. The undiluted book value of common shares of Stonegate Bank was $15.37 per share on December 31, 2012.
Total Stonegate Bank
Legacy Dec In thousands Mar 2012 Jun 2012 Sept 2012 Dec 2012 2012 ----------- ----------- ----------- ----------- Total loans $ 633,659 $ 676,480 $ 691,590 $ 732,898 $ 589,000 30 days past due 1,304 979 1,811 2,115 0 60 - 89 days 0 890 304 1,131 0 NPAs 9,850 6,746 6,128 6,198 402 REO 5,400 6,402 6,942 3,257 15
In order to better illustrate trends in asset quality the chart above shows the various categories and ending balances over the last four quarters, along with a comparison to the legacy portfolio at year end. This is presented to provide additional clarity on the portfolio trends as well as the Bank's progress in reducing non-performing loans and REO.
The Bank's non-performing loans remained relatively level from $6.1 million on September 30, 2012 to $6.2 million on December 31, 2012. Overall, non-performing loans represent 0.85% of total loans and 0.65% of total assets. Total non-performing legacy loans (originated by Stonegate Bank and not through acquisition) were $402,000 at December 31, 2012.
Real estate owned decreased significantly from $6.9 million on September, 30 2012 to $3.2 million on December 31, 2012. Total legacy REO was $15,000 at December 31, 2012.
The Bank's loan loss reserve was $17 million on December 31, 2012. This reserve represents 364% of all non-performing loans and 2.32% of total loans. Total loans past due more than 30 days increased from $2.1 million on September 30, 2012 to $3.2 million on December 31, 2012. At December 31, 2012, there were no past due loans in the legacy portfolio.
"As I look back at 2012, several trends at Stonegate and the Florida economy are evident," said Dave Seleski, President and Chief Executive Officer. "Real estate, particularly residential, continues to improve in all the markets we serve. We have seen significant appreciation in home prices as evidenced by the median price of homes increasing year over year in all of our markets. In addition, most of our markets had reduced commercial vacancies and rental rates appear to be increasing as well. This is very encouraging.
"I think the public views the State of Florida as an excellent place to invest and expand their businesses. All of this certainly contributed to our 22% loan growth in 2012. We ramped up our loan production by adding additional lenders and without sacrificing our credit quality. In the asset quality section above I have added, for comparative purposes, a column showing only loans originated by Stonegate. This shows we have virtually no problems in our legacy portfolio. Our credit culture is and will always continue to be the foundation of our Bank.
"Our goal in 2013 is to continue to grow organically without sacrificing margin and credit quality. In addition, the bank will continue to evaluate potential mergers or strategic alliances that will enhance shareholder value," said 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, 2012 (In Thousands) Assets Cash and Due From Banks $ 57,930 Federal Funds Sold - Investment Securities 112,625 Commercial Loans 99,764 Commercial Real Estate Loans - Owner Occupied 185,167 Commercial Real Estate Loans - Other 238,360 Construction Loans 46,185 Residential 1-4 Family Loans 118,040 HELOCs 32,923 Consumer Loans 12,459 ----------- Gross Loans 732,898 Allowance for Loan Losses (17,016) ----------- Net Loans 715,882 Fixed Assets 13,075 Other Assets 45,265 ----------- Total Assets $ 944,777 =========== Liabilities Non-Interest Bearing Deposits $ 126,551 NOW Accounts 72,533 Money Market Accounts 327,850 Core Reciprocal Deposits 124,622 Savings Accounts 7,170 Certificates of Deposits 87,442 ----------- Total Deposits 746,168 Repurchase Agreements 34,660 FHLB and Other Borrowings 20,060 Other Liabilities 17,180 ----------- Total Liabilities 818,068 Total Capital 126,709 ----------- Total Liabilities and Capital $ 944,777 =========== STONEGATE BANK Income Statement For Period Ended December 31, 2012 (In Thousands) Interest Income $ 42,915 Interest Expense 7,447 ------------- Net Interest Income 35,468 Less: Provision for Loan Losses 4,378 ------------- Net Interest Income after Provision for Loan Losses 31,090 Non-Interest Income 3,626 Realized Gains (Losses) on AFS Securities 2,975 Less: Salaries and Benefits Expense 13,283 Occupancy and Equipment Expense 3,497 Data Processing Expense 787 Legal and Professional Expense 1,455 FDIC Assessments 580 Loan and OREO Expenses 991 Other Expense 2,550 ------------- Total Non-Interest Expense 23,143 Net Income Before Income Taxes 14,548 Income Taxes 5,466 ------------- Net Income $ 9,082 =============
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