LAKE HAVASU CITY, Ariz., Jan. 27, 2012 (GLOBE NEWSWIRE) -- State Bank Corp. (OTCBB:SBAZ) ("Company"), the holding company for Mohave State Bank ("Bank"), today announced net income of $137,000, or $0.02 per diluted share, for the quarter ended December 31, 2011, as compared to a net loss of $2.9 million, or $0.75 per diluted share, for the same period of 2010. For the year ended December 31, 2011, the Company reported net income of $542,000, or $0.10 per diluted share, as compared to a net operating loss in the same period of 2010.
Fourth Quarter 2011 Highlights include:
- Mohave State Bank celebrated its 20th anniversary on October 15, 2011.
- Four straight quarters of sustained profitability after operating losses in 2009 and 2010.
- Reduction in nonperforming assets by 21.2 percent.
- Decrease in quarterly net credit losses by 88.2 percent.
- Elimination of all brokered deposits.
- The Bank achieved both of its Consent Order capital requirements.
"We are very pleased to report four quarters of sustained profitability. Progress continues to be made on satisfying the elements of our Consent Order as we reached both of the capital requirements in the fourth quarter. In addition, nonperforming assets decreased significantly in the fourth quarter and credit related costs continue to abate," commented Brian M. Riley, President & CEO.
With data suggesting that real estate values are continuing to stabilize and the credit environment improving, the Company was not required to provide any additional loan loss reserves during the fourth quarter. During 2011, the Company provided $696,000 as compared to $10.0 million in 2010. Reserves are added to proactively protect against an uncertain economic environment and cover estimated potential future credit losses. Net credit losses during the fourth quarter of 2011 were reduced significantly to $259,000 as compared to $2.2 million for the same period of 2010. Net credit losses during 2011 totaled $3.8 million as compared to $10.7 million during 2010.
The Company's net interest margin improved in the fourth quarter to 4.86 percent as a number of loans were restored to accrual status. Cost of funding decreased by another 5 basis points to 0.56 percent, which ranks the Company in the top 20 percent of its national peer group.
Nonperforming assets were $32.7 million at December 31, 2011, a 21.1 percent decrease from 41.4 million at September 30, 2011. Nonperforming assets represented 11.5 percent of total assets at December 31, 2011 as compared to 13.6 percent at December 31, 2010. The allowance for loan and lease losses totaled $5.2 million, or 2.58 percent of total loans, at December 31, 2011.
As of December 31, 2011, total assets were $282.8 million, a decrease of $19.8 million from $302.6 million at December 31, 2010. Total loans held for investment were $200.0 million at December 31, 2011 as compared to $218.6 million at December 31, 2010. Total deposits were $243.6 million at December 31, 2011 as compared to $253.2 million at December 31, 2010. For the past two years, the Company has orchestrated a balance sheet reduction strategy to supplement its capital ratios.
Shareholder equity increased to $27.5 million at December 31, 2011 from $23.8 million at December 31, 2010. This was a result of the combination of net operating income and success in the Company's common stock offering. The Bank must meet certain minimum capital requirements to satisfy federal and state laws. The following table provides the Bank's capital ratio at December 31, 2011:
|
Actual Ratio |
Ratio to be well capitalized |
Consent Order Requirement |
|
|
Leverage Ratio Tier 1 Capital to Risk-Weighted Assets Total Capital to Risk-Weighted Assets |
9.39% 11.47% 12.73% |
5.00% 6.00% 10.00% |
9.25% N/A 12.00% |
The Company now complies with all capital requirements of its Consent Order. The Company continues to make progress on reducing commercial real estate credit concentrations and classified assets.
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.
The State Bank Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8162
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 | 12/31/2011 | 9/30/2011 | 6/30/2011 | 3/31/2011 | 12/31/2010 |
| Performance Highlights | |||||
| Earnings: | |||||
| Total revenue (Net int. income + nonint. income) | $ 3,545 | $ 3,190 | $ 3,246 | $ 3,299 | $ 3,406 |
| Net interest income | $ 2,980 | $ 2,647 | $ 2,756 | $ 2,846 | $ 2,827 |
| Provision for loan losses | $ -- | $ 500 | $ -- | $ 196 | $ 1,100 |
| Noninterest income | $ 565 | $ 543 | $ 490 | $ 453 | $ 579 |
| Noninterest expense | $ 3,408 | $ 2,567 | $ 3,113 | $ 2,954 | $ 3,208 |
| Net income (loss) | $ 137 | $ 123 | $ 133 | $ 149 | $ (2,893) |
| Per Share Data: | |||||
| Net income (loss), basic | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.04 | $ (0.75) |
| Net income (loss), diluted | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.04 | $ (0.75) |
| Cash dividends declared | $ -- | $ -- | $ -- | $ -- | $ -- |
| Book value | $ 4.83 | $ 4.83 | $ 4.80 | $ 5.80 | $ 6.17 |
| Tangible book value | $ 4.83 | $ 4.83 | $ 4.80 | $ 5.80 | $ 6.17 |
| Performance Ratios: | |||||
| Return on average assets | 0.19% | 0.16% | 0.17% | 0.19% | -3.63% |
| Return on average equity | 1.99% | 1.79% | 1.96% | 2.45% | -44.46% |
| Net interest margin, taxable equivalent | 4.86% | 4.15% | 4.28% | 4.33% | 4.10% |
| Average cost of funds | 0.56% | 0.61% | 0.68% | 0.72% | 0.82% |
| Average yield on loans | 6.18% | 5.45% | 5.57% | 5.67% | 5.46% |
| Efficiency ratio | 96.14% | 80.47% | 95.90% | 89.54% | 94.19% |
| Non-interest income to total revenue | 15.94% | 17.02% | 15.10% | 13.73% | 17.00% |
| Capital & Liquidity: | |||||
| Total equity to total assets (EOP) | 9.72% | 9.47% | 9.08% | 7.86% | 8.40% |
| Tangible equity to tangible assets | 9.72% | 9.47% | 9.08% | 7.86% | 8.40% |
| Total loans to total deposits | 82.29% | 80.25% | 79.37% | 87.30% | 83.83% |
| Mohave State Bank | |||||
| Tier 1 leverage ratio | 9.39% | 9.14% | 8.76% | 8.41% | 7.80% |
| Tier 1 risk based capital | 11.47% | 11.54% | 11.12% | 10.46% | 9.61% |
| Total risk based capital | 12.73% | 12.59% | 12.38% | 11.74% | 10.88% |
| Asset Quality: | |||||
| Gross charge-offs | $ 307 | $ 1,697 | $ 1,848 | $ 318 | $ 2,372 |
| Net charge-offs (NCOs) | $ 259 | $ 1,465 | $ 1,816 | $ 260 | $ 2,199 |
| NCO to average loans, annualized | 0.52% | 2.88% | 3.47% | 0.48% | 3.87% |
| Non-accrual loans | $ 14,288 | $ 22,527 | $ 26,746 | $ 21,162 | $ 23,587 |
| Other real estate owned | $ 18,362 | $ 18,832 | $ 16,962 | $ 16,966 | $ 17,467 |
| Repossessed assets | $ -- | $ -- | $ -- | $ -- | $ -- |
| Non-performing assets (NPAs) | $ 32,650 | $ 41,359 | $ 43,708 | $ 38,128 | $ 41,054 |
| NPAs to total assets | 11.54% | 14.26% | 14.56% | 12.28% | 13.57% |
| Loans >90 days past due | $ 9 | $ 51 | $ 435 | $ -- | $ -- |
| NPAs + 90 days past due | $ 32,659 | $ 41,410 | $ 44,143 | $ 38,128 | $ 41,054 |
| NPAs + loans 90 days past due to total assets | 11.55% | 14.28% | 14.70% | 12.28% | 13.57% |
| Allowance for loan losses to total loans | 2.58% | 2.72% | 3.09% | 3.88% | 3.74% |
| Allowance for loan losses to NPAs | 15.84% | 13.12% | 14.62% | 21.52% | 20.14% |
| Period End Balances: | |||||
| Assets | $ 282,834 | $ 289,967 | $ 300,192 | $ 310,417 | $ 302,637 |
| Total Loans (before reserves) | $ 200,442 | $ 199,278 | $ 206,554 | $ 211,391 | $ 221,099 |
| Deposits | $ 243,571 | $ 248,316 | $ 260,239 | $ 262,572 | $ 253,259 |
| Stockholders' equity | $ 27,484 | $ 27,448 | $ 27,257 | $ 24,795 | $ 23,777 |
| Common stock market capitalization | $ 11,146 | $ 14,821 | $ 12,720 | $ 12,830 | $ 7,170 |
| Full-time equivalent employees | 78 | 81 | 77 | 76 | 75 |
| Shares outstanding | 5,686,588 | 5,678,718 | 5,678,718 | 4,276,589 | 3,854,714 |
| Average Balances: | |||||
| Assets | $ 290,948 | $ 298,471 | $ 309,688 | $ 307,770 | $ 318,759 |
| Earning assets | $ 251,086 | $ 261,946 | $ 264,124 | $ 269,814 | $ 283,134 |
| Total Loans (before reserves) | $ 199,978 | $ 203,737 | $ 209,414 | $ 215,506 | $ 227,485 |
| Deposits | $ 247,934 | $ 257,326 | $ 258,275 | $ 260,438 | $ 268,722 |
| Other borrowings | $ 14,696 | $ 12,833 | $ 23,506 | $ 22,175 | $ 23,084 |
| Stockholders' equity | $ 27,570 | $ 27,441 | $ 27,111 | $ 24,335 | $ 26,030 |
| Shares outstanding, basic - wtd | 5,682,739 | 5,678,718 | 5,405,572 | 3,895,714 | 3,854,714 |
| Shares outstanding, diluted - wtd | 5,683,557 | 5,679,536 | 5,407,139 | 3,906,856 | 3,857,001 |
| State Bank Corp. | ||
| Balance Sheets | ||
| Dollars in thousands - Unaudited | 12/31/2011 | 12/31/2010 |
| Consolidated Balance Sheets | ||
| Assets | ||
| Cash and cash equivalents | $ 2,204 | $ 4,102 |
| Interest bearing deposits | 3,595 | 200 |
| Overnight Funds | 10,560 | 13,690 |
| Held for maturity securities | 633 | 684 |
| Available for sale securities | 29,823 | 32,262 |
| Total cash and securities | 46,815 | 50,938 |
| Loans held for sale, before reserves | 2,409 | 2,264 |
| Gross loans held for investment | 199,986 | 218,559 |
| Loan loss reserve | (5,172) | (8,270) |
| Total net loans | 197,223 | 212,553 |
| Premises and equipment, net | 10,508 | 10,842 |
| Other real estate owned | 18,362 | 17,467 |
| Federal Home Loan Bank and other stock | 2,403 | 2,829 |
| Company owned life insurance | 5,388 | 5,327 |
| Other assets | 2,135 | 2,681 |
| Total Assets | $ 282,834 | $ 302,637 |
| Liabilities | ||
| Non interest bearing demand | $ 48,483 | $ 42,894 |
| Money market, NOW and savings | 118,310 | 122,331 |
| Time deposits <$100K | 35,373 | 43,452 |
| Time deposits >$100K | 41,405 | 44,582 |
| Total Deposits | 243,571 | 253,259 |
| Securities sold under repurchase agreements | 8,523 | 21,051 |
| Federal Home Loan Bank advances | 2,000 | 2,000 |
| Subordinated debt | 675 | 1,812 |
| Total Debt | 11,198 | 24,863 |
| Other Liabilities | 581 | 738 |
| Total Liabilities | 255,350 | 278,860 |
| Shareholders' Equity | ||
| Common stock | 24,535 | 21,655 |
| Accumulated retained earnings | 2,375 | 1,833 |
| Accumulated other comprehensive income | 574 | 289 |
| Total shareholders equity | 27,484 | 23,777 |
| Total liabilities and shareholders' equity | $ 282,834 | $ 302,637 |
| State Bank Corp. | ||||
| Statement of Operations | ||||
| For the Quarter Ended | Year to Date | |||
| Dollars in thousands - Unaudited | 12/31/2011 | 12/31/2010 | 12/31/2011 | 12/31/2010 |
| Statements of Operations | ||||
| Interest income | ||||
| Loans, including fees | $ 3,088 | $ 3,105 | $ 11,838 | $ 13,869 |
| Securities | 247 | 310 | 1,107 | 1,507 |
| Fed funds and other | 12 | 12 | 57 | 65 |
| Total interest income | 3,347 | 3,427 | 13,002 | 15,441 |
| Interest expense | ||||
| Deposits | 342 | 522 | 1,590 | 3,251 |
| Borrowings | 25 | 78 | 183 | 402 |
| Total interest expense | 367 | 600 | 1,773 | 3,653 |
| Net interest income | 2,980 | 2,827 | 11,229 | 11,788 |
| Provision for loan losses | -- | 1,100 | 696 | 10,015 |
| Net interest income after loan loss provision | 2,980 | 1,727 | 10,533 | 1,773 |
| Noninterest income | ||||
| Service charges on deposits | 133 | 124 | 498 | 600 |
| Mortgage loan fees | 96 | -- | 345 | 23 |
| Gain on sale of loans | 202 | 312 | 579 | 924 |
| Other income | 134 | 143 | 630 | 829 |
| Total noninterest income | 565 | 579 | 2,052 | 2,376 |
| Noninterest expense | ||||
| Salaries and employee benefits | 1,199 | 1,140 | 4,585 | 4,515 |
| Net occupancy expense | 69 | 92 | 326 | 361 |
| Equipment expense | 45 | 44 | 167 | 193 |
| Data processing | 226 | 247 | 901 | 1,027 |
| Director fees & expenses | 37 | 59 | 152 | 244 |
| Insurance | 67 | 48 | 212 | 105 |
| Marketing & promotion | 97 | 41 | 277 | 265 |
| Professional fees | 40 | 138 | 320 | 516 |
| Office expense | 49 | 55 | 195 | 221 |
| Regulatory assessments | 162 | 223 | 723 | 1,052 |
| OREO and repossessed assets | 1,364 | 1,036 | 3,826 | 4,999 |
| Other expenses | 53 | 85 | 359 | 417 |
| Total noninterest expense | 3,408 | 3,208 | 12,043 | 13,915 |
| Income (loss) before provision (benefit) for income taxes | 137 | (902) | 542 | (9,766) |
| Provision (benefit) for income taxes | -- | 1,991 | -- | 410 |
| Net Income (Loss) | $ 137 | $ (2,893) | $ 542 | $ (10,176) |
| Per Share Data | ||||
| Basic EPS | $ 0.02 | $ (0.75) | $ 0.10 | $ (2.64) |
| Diluted EPS | $ 0.02 | $ (0.75) | $ 0.10 | $ (2.64) |
| Average shares outstanding | ||||
| Basic | 5,682,739 | 3,854,714 | 5,171,987 | 3,854,714 |
| Effect of dilutive shares | 818 | 2,494 | 3,551 | 2,494 |
| Diluted | 5,683,557 | 3,857,208 | 5,175,538 | 3,857,208 |