JERICHO, N.Y., Oct. 24, 2007 (PRIME NEWSWIRE) -- State Bancorp, Inc. (Nasdaq:STBC), parent company of State Bank of Long Island, today reported net income for the third quarter of 2007 of $3.1 million versus $2.4 million a year ago, representing an increase of 29.3%. Diluted earnings per common share were $0.22 in the third quarter of 2007 and $0.20 in the comparable 2006 period. The increase in third quarter net income in 2007 is primarily attributable to a $1.6 million reduction in operating expenses. Third quarter net income was impacted negatively by a reduction in net interest income resulting from a lower net interest margin in 2007 versus 2006. However, net interest margin improved by seven basis points to 3.89% in the third quarter of 2007 when compared to the second quarter of 2007. Year-to-date 2007 net income was $5.8 million, or $0.41 per diluted share, compared to $8.1 million or $0.71 per diluted share in 2006.
Third Quarter Performance Highlights
* Average loans and leases outstanding increased by 5% to $1.0
billion versus the third quarter of 2006;
* Average core deposits totaled $885 million or 67% of total
deposits in the third quarter of 2007 versus $935 million or 65%
of total deposits in the third quarter of 2006. Average demand
deposits were $317 million in the third quarter of 2007 versus
$321 million a year ago;
* Non-accrual loans and leases totaled $8 million (0.8% of loans
and leases outstanding) at September 30, 2007 versus $3 million
(0.3% of loans and leases outstanding) at September 30, 2006 and
$9 million (0.9% of loans and leases outstanding) at June 30,
2007;
* $7 million in Watch List loans ($5 million after write-down),
were reclassified as held for sale pending disposition at
September 30, 2007;
* Total operating expenses decreased by $1.6 million or 13.2% to
$10.8 million in the third quarter of 2007 versus the third
quarter of 2006.
* Provision for loan and lease losses declined by $136 thousand
(17.2%) in the third quarter of 2007 versus the third quarter of
2006. The provision for loan and lease losses increased by $26
thousand (4.1%) versus the second quarter of 2007 and decreased
by $921 thousand (58.5%) versus the first quarter of 2007;
* Net interest margin declined to 3.89% in the third quarter of
2007 from 4.05% in the comparable 2006 period but increased from
3.82% in the second quarter of 2007;
* Returns on average assets and stockholders' equity were 0.74%
and 11.21%, respectively, in the third quarter of 2007 and 0.58%
and 15.22% in 2006, respectively;
* Tier I leverage capital ratio increased to 7.51% at September
30, 2007 versus 4.48% at September 30, 2006 and 7.06% at June 30,
2007.
Commenting on the third quarter results, President and CEO, Thomas M. O'Brien stated, "As noted in previous quarters, 2007 remains a transitional time for the Company as we reorganize our management team and implement strategies for future growth and development. This is evidenced by our year to date increase in operating expenses related to our previously disclosed Voluntary Exit Window Program. However, our third quarter performance reflects the initial results of initiatives recently implemented in order to achieve greater efficiency and profitability for the Company. Most unfortunately, the purported shareholder derivative action that commenced in July required the Company to incur an initial legal expense of $500 thousand in the third quarter. This additional expense somewhat masks a consistent improvement in our core operating efficiency. We will continue to strengthen our balance sheet and capital position by focusing on our core competencies of delivering high quality banking products and personalized service to small and middle-market businesses, professional service firms, and commercial real estate owners, developers and operators.
"The banking industry remains challenged by economic pressures from the yield curve and most recently, the current subprime mortgage crisis. To date, the impact of this crisis on the Company's loan portfolio has been minimal since, by policy, we do not engage in subprime lending. The softening of the local real estate market and the associated downward trend in the local economy have thus far impacted the Company's loan portfolio to a limited extent. The Company's securities portfolio contains no subprime structured debt, exotic structures or other hard to value instruments. At September 30, 2007, the market value of the securities portfolio represented 99.8% of book value thereby exhibiting virtually no depreciation. Additionally the Company's liquidity remains strong as a result of our stable deposit base, ample borrowing capacity secured by liquid assets and other funding sources.
"We remain fully focused on our strategy of delivering high quality service to our customers, building long term sustainable earnings, and creating value for our shareholders. Management continues to conduct an orderly review of each business unit and administrative support department to make certain that we are making the best use of our expense budget."
Earnings Summary for the Quarter Ended September 30, 2007
Net interest income decreased by $336 thousand (down 2.2%) to $14.9 million in the third quarter of 2007 versus 2006 as the result of a 16 basis point decline in the Company's net interest margin to 3.89% in 2007. Partially offsetting the narrower margin was a 2% increase in average interest-earning assets, primarily loans and leases. Growth in commercial loans, commercial mortgages, and leases resulted in a 5% increase in average loans and leases outstanding to $1.0 billion during the third quarter of 2007 versus 2006. The average investment portfolio declined by 2% to $517 million in the third quarter, principally due to a decline in government agency securities. Funding the overall growth in average interest-earning assets were increases in other temporary borrowings and stockholders equity of $142 million and $47 million, respectively. Other temporary borrowings consisted primarily of Federal Home Loan Bank overnight and short-term advances which are fully secured by marketable collateral. Average total deposits decreased by $108 million (8%) during the third quarter of 2007 primarily due to reductions in savings deposits and retail CDs. Average core deposit balances (demand, savings, money fund and super NOW deposits) declined by $50 million during the third quarter of 2007 to $885 million at an average cost of 1.91%.
The Company's fully taxable equivalent (FTE) net interest margin narrowed to 3.89% in the third quarter of 2007 from 4.05% a year ago. This decline resulted from a 34 basis point increase in the Company's cost of funds, principally due to competitive liability pricing pressure combined with a shift in the funding mix from core deposits to borrowings and CDs. This higher cost of funds was offset somewhat by an 18 basis point increase in the Company's earning asset yield to a weighted average rate of 7.13% in the third quarter of 2007. The higher asset yield resulted primarily from the impact of higher rates in 2007 and growth in loans and leases from the comparable 2006 period. However, net interest margin compared to the second quarter of 2007 improved by seven basis points principally as the result of higher asset yields in the Company's investment portfolio.
The provision for loan and lease losses decreased by $136 thousand or 17.2% during the third quarter of 2007 versus 2006.
Non-interest income decreased by $105 thousand or 7.4% in the third quarter of 2007 compared to the 2006 period. The reduction was due to a 20.4% decrease in service charges on deposits, primarily attributable to reductions in deposit-related fees and overdraft charges resulting from a lower level of overdrafts in the third quarter of 2007.
Total operating expenses decreased by $1.6 million or 13.2% to $10.8 million during the third quarter of 2007 when compared to last year. The primary reasons for this decrease were reductions in legal expenses and salaries and other employee benefits of $850 thousand and $663 thousand, respectively. The reduction in legal expenses is primarily related to the settlement of the Island Mortgage Network ("IMN") litigation in January 2007. The financial impact of the settlement was recorded by the Company during the fourth quarter of 2006. No IMN-related legal expenses were recorded in the third quarter of 2007. Expenses associated with an appeal of the January 2006 IMN trial verdict are included in the results for 2006 and account for the decrease in legal expenses in the third quarter year-to-year comparison. As reported in the Company's Form 8-K filing with the SEC on July 24, 2007, the Company is a nominal defendant in a purported shareholder derivative lawsuit brought against certain directors and current and former executive officers. Third quarter 2007 legal expenses include $500 thousand in outside counsel fees relating to this matter. Salaries and other employee benefits decreased by 9.5% in the 2007 third quarter compared to the comparable 2006 period, reflecting in part expense reductions attributable to the previously announced Voluntary Exit Window program, which was completed in the second quarter of 2007. The reduction in salaries and other employee benefits was also impacted by a reserve reduction of $500 thousand in accrued 2007 executive incentive compensation expense, reflecting an anticipated reduction in awards for the 2007 calendar year. Occupancy expenses increased by 12.8% due to higher rental, utility, maintenance and building depreciation costs. Marketing and advertising expenses decreased by 15.8% primarily resulting from a reduction in TV/radio advertising. Credit and collection costs increased by 61.6% due to higher costs associated with loan collection efforts and increased credit report expenses. Other operating expenses increased by 1.9% to $1.5 million during the third quarter of 2007, due in part to the recording in 2006 of a real estate tax refund resulting from a successful certiorari proceeding.
Income tax expense increased by $646 thousand in the third quarter of 2007 versus the comparable period a year ago. The Company's effective tax rate was 35.1% in the third quarter of 2007 and 30.0% in 2006.
Earnings Summary for the Nine months Ended September 30, 2007
Net income for the first nine months of 2007 was $5.8 million versus $8.1 million in 2006. A 4.1% reduction in net interest income, lower non-interest income and increases in the provision for loan and lease losses and total operating expenses were the primary factors causing the decline in 2007 year-to-date net income.
The $1.9 million reduction in net interest income was due to a 29 basis point decline in the Company's net interest margin to 3.80% in 2007. The provision for loan and lease losses increased by $659 thousand in 2007 versus the comparable 2006 period as the result of higher net charge-offs and an increase in non-performing assets in 2007. Non-interest income decreased by 5.2% to $4.1 million, principally due to reductions in deposit service charges and other operating income. Total operating expenses grew by $382 thousand in the first nine months of 2007 compared with 2006. The growth was mainly due to increases in salaries and other employee benefits expenses of $3.7 million, other operating expenses of $439 thousand and occupancy expenses of $340 thousand. The increase in salaries and other employee benefits expenses is primarily attributable to the $3.1 million second quarter charge for the 2007 Voluntary Exit Window program. Substantially offsetting these increases was a reduction of $4.2 million in legal expenses, principally in connection with the IMN litigation. The Company's effective tax rate was 33.0% and 31.1% in 2007 and 2006, respectively.
Allowance for Loan and Lease Losses
As of September 30, 2007, the Company's allowance for loan and lease losses amounted to $15 million or 1.45% of period-end loans and leases outstanding. The allowance as a percentage of loans and leases outstanding was 1.66% at June 30, 2007, 1.67% at December 31, 2006 and 1.78% at September 30, 2006. The reduction in the allowance as a percentage of the total loan and lease portfolio at September 30, 2007 compared with prior periods is primarily due to charge-offs of classified watch list loans and loans that were transferred to loans held for sale in the third quarter of 2007. The allowance as a percentage of non-accrual loans and leases amounted to 191% at September 30, 2007 versus 192% at June 30, 2007 and 754% at December 31, 2006 and 549% at September 30, 2006. The decline in the reserve coverage ratio at September 30, 2007 from September 30, 2006 and December 31, 2006 is due to an increase in non-performing assets resulting primarily from the addition of one commercial loan relationship to non-accrual status in the first quarter of 2007.
Net charge-offs for the third quarter of 2007 and 2006 were $2.4 million and $275 thousand, respectively. As a percentage of average total loans and leases outstanding, these charge-off totals represented 0.96% and 0.11% in 2007 and 2006, respectively. Net charge-offs for the third quarter of 2007 include write-downs of classified watch list loans and loans that were transferred to loans held for sale. Based upon historical trends, inherent risk in the loan and lease portfolio, and the downward pressures the local economy is currently experiencing, the Company expects to record loan and lease charge-offs in future periods, which management believes has been adequately reserved for in the allowance for loan and lease losses reported at September 30, 2007.
Non-performing Assets
Non-performing assets are defined by the Company as non-accrual loans and leases and other real estate owned ("OREO"). Non-accrual loans and leases totaled $8 million (0.8% of loans and leases outstanding) at September 30, 2007, versus $2 million (0.2% of loans and leases outstanding) at December 31, 2006 and $3 million (0.3% of loans and leases outstanding) at September 30, 2006. The increase in non-accrual loans and leases at September 30, 2007 versus year-end 2006 and September 30, 2006 resulted from the addition of one commercial loan relationship to non-accrual status during the first quarter of 2007. While this long-term relationship had been on the Bank's internal watch list for deteriorating credit conditions, the borrower abruptly ceased operations at the end of the first quarter of 2007 and subsequently filed for bankruptcy. The Bank is pursuing its secured claims through the bankruptcy court and expects to recover all remaining balance sheet receivables. The Company held no OREO at September 30, 2007, December 31, 2006 or September 30, 2006.
Capital
Total stockholders' equity was $113 million at September 30, 2007 and $65 million at September 30, 2006. The increase in stockholders' equity is primarily due to the Company's sale of 2.25 million shares of its common stock in December 2006, which increased capital by $36 million. The Company currently has outstanding $20 million in trust preferred securities that qualify as Tier I capital. During the first nine months of 2007, the weighted average rate on the Company's trust preferred securities was 8.53% versus 8.13% a year ago. The Company also has $10 million of 8.25% subordinated notes outstanding which qualify as Tier II capital.
The Company's capital ratios exceed all regulatory requirements at September 30, 2007. State Bank of Long Island's Tier I leverage, Tier I risk-weighted and total risk-weighted capital ratios were 7.88%, 10.83% and 12.06%, respectively, at September 30, 2007. Each of these ratios is in excess of the regulatory guidelines for a "well capitalized" institution, the highest regulatory capital category.
During the first three quarters of 2007, the Company declared two cash dividends on its common stock of $0.15 per share. The Company also announced in June a change to its cash dividend schedule to a quarterly declaration during the first month of each calendar quarter. Since the Company recorded a net loss in 2005 following the issuance of the IMN jury verdict, the quarterly cash dividend had been on an irregular schedule due to advance approvals required from the New York State Banking Department, the Bank's primary regulator, for the Bank to pay cash dividends to the Company. Based on the new dividend schedule, the Board of Directors of the Company declared a cash dividend of $0.15 per share at its October 23, 2007 meeting. The cash dividend will be paid on December 10, 2007 to stockholders of record on November 16, 2007.
The Company did not repurchase any of its common stock during the first nine months of 2007. Under the Board of Directors' existing authorization, an additional 512,348 shares may be repurchased from time to time as conditions warrant. The Company does not presently anticipate repurchasing any of its shares in the immediate future.
Corporate Information
State Bancorp, Inc. (Nasdaq:STBC), is the holding company for State Bank of Long Island, the largest independent commercial bank headquartered on Long Island. In addition to its sixteen branch locations throughout Nassau, Suffolk and Queens Counties, the Bank owns Jericho, N.Y.-based Studebaker-Worthington Leasing Corp., a nationwide provider of business equipment leasing. The Bank also maintains a lending facility in Jericho. State Bank has built a reputation for providing high-quality personal service to meet the needs of commercial, small business, municipal and consumer markets throughout Long Island and Queens. The Company maintains a web site at www.statebankofli.com with corporate, investor and branch banking information.
Forward-Looking Statements and Risk Factors
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "could," "should," "would," "believe," "anticipate," "estimate," "expect," "intend," "plan," "project," "is confident that," and similar expressions are intended to identify forward-looking statements. The forward-looking statements involve risk and uncertainty and a variety of factors that could cause the Company's actual results and experience to differ materially from the anticipated results or other expectations expressed in these forward-looking statements. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, changes in: market interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, the quality and composition of the loan and lease or investment portfolios, demand for loan and lease products, demand for financial services in the Company's primary trade area, litigation, tax and other regulatory matters, accounting principles and guidelines, other economic, competitive, governmental, regulatory and technological factors affecting the Company's operations, pricing and services and those risks detailed in the Company's periodic reports filed with the SEC. Investors are encouraged to access the Company's periodic reports filed with the SEC for financial and business information regarding the Company at www.statebankofli.com. The Company undertakes no obligation to publish revised events or circumstances after the date hereof.
STATE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the Three and Nine Months Ended September 30, 2007 and 2006
(unaudited)
Three Months Nine Months
--------------------------------------------------
2007 2006 2007 2006
----------- ----------- ----------- -----------
INTEREST INCOME:
Interest and fees
on loans and
leases $20,783,726 $20,012,282 $61,922,130 $57,112,083
Federal funds sold
and securities
purchased under
agreements to
resell 37,670 267,946 2,105,379 2,223,215
Securities held
to maturity:
Taxable -- 95,439 80,541 320,752
Securities available
for sale:
Taxable 6,258,452 5,758,882 18,125,460 17,360,912
Tax-exempt 130,937 92,069 394,089 384,011
Dividends 29,750 26,611 89,250 64,861
Dividends on Federal
Home Loan Bank
and other restricted
stock 231,510 18,673 328,164 86,937
----------- ----------- ----------- -----------
Total interest
income 27,472,045 26,271,902 83,045,013 77,552,771
----------- ----------- ----------- -----------
INTEREST EXPENSE:
Deposits 9,719,597 10,137,429 32,494,896 28,832,113
Temporary
borrowings 2,121,502 172,046 3,911,312 620,538
Subordinated notes 231,185 229,570 691,264 285,552
Junior subordinated
debentures 467,192 463,987 1,381,565 1,321,207
----------- ----------- ----------- -----------
Total interest
expense 12,539,476 11,003,032 38,479,037 31,059,410
----------- ----------- ----------- -----------
Net interest
income 14,932,569 15,268,870 44,565,976 46,493,361
Provision for loan
and lease losses 652,500 788,334 2,853,500 2,194,998
----------- ----------- ----------- -----------
Net interest income
after provision
for loan and lease
losses 14,280,069 14,480,536 41,712,476 44,298,363
----------- ----------- ----------- -----------
NON-INTEREST INCOME:
Service charges on
deposit accounts 447,983 563,079 1,586,588 1,817,554
Net security losses (15,442) (37,676) (49,891) (96,969)
Income from bank
owned life insurance 263,606 263,919 823,611 746,544
Other operating
income 608,380 619,916 1,731,453 1,850,678
----------- ----------- ----------- -----------
Total non-interest
income 1,304,527 1,409,238 4,091,761 4,317,807
----------- ----------- ----------- -----------
Income before
operating
expenses 15,584,596 15,889,774 45,804,237 48,616,170
----------- ----------- ----------- -----------
OPERATING EXPENSES:
Salaries and other
employee benefits 6,294,265 6,957,074 23,881,597 20,147,042
Occupancy 1,404,088 1,244,809 4,045,607 3,705,558
Equipment 282,876 300,171 935,831 907,299
Legal 525,645 1,375,225 1,006,436 5,233,316
Marketing and
advertising 290,809 345,275 1,208,706 1,039,861
Credit and
collection 250,699 155,168 755,659 528,714
Audit and assessment 279,125 626,897 855,967 1,185,410
Other operating
expenses 1,504,253 1,475,990 4,522,923 4,083,581
----------- ----------- ----------- -----------
Total operating
expenses 10,831,760 12,480,609 37,212,726 36,830,781
----------- ----------- ----------- -----------
INCOME BEFORE
INCOME TAXES 4,752,836 3,409,165 8,591,511 11,785,389
PROVISION FOR
INCOME TAXES 1,669,634 1,024,053 2,831,796 3,670,798
----------- ----------- ----------- -----------
NET INCOME $ 3,083,202 $ 2,385,112 $ 5,759,715 $ 8,114,591
=========== =========== =========== ===========
STATE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, 2007 and 2006 (unaudited)
2007 2006
-------------- --------------
ASSETS:
Cash and due from banks $ 53,109,741 $ 41,645,560
Securities held to maturity
(estimated fair value
- $6,363,562 in 2006) -- 6,365,934
Securities available for sale
- at estimated fair value 528,634,049 527,243,575
-------------- --------------
Total securities 528,634,049 533,609,509
Federal Home Loan Bank and other
restricted stock 11,788,643 3,283,343
Loans and leases (net of allowance
for loan and lease losses of
$14,658,906 in 2007 and
$16,916,598 in 2006) 994,418,163 935,799,797
Bank premises and equipment - net 5,929,457 6,131,788
Bank owned life insurance 28,714,627 27,626,479
Net deferred income taxes 23,034,276 38,505,501
Receivable - securities sales -- 5,016,850
Other assets 29,077,959 21,455,502
-------------- --------------
TOTAL ASSETS $1,674,706,915 $1,613,074,329
============== ==============
LIABILITIES:
Deposits:
Demand $ 328,668,992 $ 307,021,461
Savings 534,571,206 573,024,614
Time 408,390,353 470,493,701
-------------- --------------
Total deposits 1,271,630,551 1,350,539,776
Federal funds purchased 9,000,000 6,500,000
Other temporary borrowings 222,038,069 35,566,640
Subordinated notes 10,000,000 10,000,000
Junior subordinated debentures 20,620,000 20,620,000
Payable - securities purchases -- 10,001,152
Accrued legal expenses 1,500,000 78,019,886
Overnight sweep accounts
payable, net -- 26,347,800
Other accrued expenses and
liabilities 27,287,048 10,784,647
-------------- --------------
Total Liabilities 1,562,075,668 1,548,379,901
-------------- --------------
COMMITMENTS AND CONTINGENT
LIABILITIES
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par
value, authorized 250,000 shares;
0 shares issued -- --
Common stock, $5.00 par value,
authorized 20,000,000 shares;
issued 14,931,152 shares in 2007
and 12,222,536 shares in 2006;
outstanding 13,943,500 shares in
2007 and 11,234,884 shares in 2006 74,655,760 61,112,680
Surplus 85,964,828 58,147,644
Retained deficit (30,537,167) (33,835,264)
Treasury stock (987,652 shares in
2007 and 2006) (16,646,426) (16,646,426)
Accumulated other comprehensive loss
(net of taxes of ($530,613) in
2007 and ($2,256,547) in 2006) (805,748) (4,084,206)
-------------- --------------
Total Stockholders' Equity 112,631,247 64,694,428
-------------- --------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $1,674,706,915 $1,613,074,329
============== ==============
STATE BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
For the Three and Nine Months Ended September 30, 2007 and 2006
(unaudited)
(dollars in thousands, except share and per share data)
Three Months Nine Months
---------------------- ----------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
SELECTED AVERAGE
BALANCES(1):
Total assets $1,643,146 $1,629,840 $1,691,598 $1,644,368
Loans and leases - net
of unearned income $1,003,747 $ 951,922 $ 999,929 $ 926,351
Investment securities $ 516,884 $ 529,816 $ 518,053 $ 535,254
Deposits $1,325,628 $1,433,255 $1,431,590 $1,458,141
Stockholders' equity $ 109,079 $ 62,173 $ 107,717 $ 59,746
FINANCIAL PERFORMANCE
RATIOS:
Return on average assets 0.74% 0.58% 0.46% 0.66%
Return on average
stockholders' equity 11.21% 15.22% 7.15% 18.16%
Net interest margin 3.89% 4.05% 3.80% 4.09%
Operating efficiency ratio 65.66% 73.71% 75.32% 71.44%
CAPITAL RATIOS:
Tier I leverage ratio 7.51% 4.48% 7.51% 4.48%
Tier I risk-based
capital ratio 10.31% 6.47% 10.31% 6.47%
Total risk-based
capital ratio 12.38% 8.61% 12.38% 8.61%
ASSET QUALITY SUMMARY:
Non-accrual loans and
leases $ 7,673 $ 3,079 $ 7,673 $ 3,079
Other real estate owned -- -- -- --
---------- ---------- ---------- ----------
Total non-performing
assets $ 7,673 $ 3,079 $ 7,673 $ 3,079
========== ========== ========== ==========
Non-accrual loans and
leases/total loans and
leases 0.76% 0.32% 0.76% 0.32%
Allowance for loan and
lease losses/non-
accrual loans and
leases 191.05% 549.42% 191.05% 549.42%
Allowance for loan and
lease losses/total
loans and leases 1.45% 1.78% 1.45% 1.78%
Net charge-offs $ 2,430 $ 275 $ 4,607 $ 995
Net charge-offs
(annualized)/average
loans and leases 0.96% 0.11% 0.62% 0.14%
COMMON SHARE DATA:
Average common shares
outstanding(2) 13,820,383 11,190,828 13,688,170 11,133,770
Period-end common
shares outstanding 13,943,500 11,234,884 13,943,500 11,234,884
Basic earnings per
common share $ 0.22 $ 0.21 $ 0.42 $ 0.73
Diluted earnings per
common share $ 0.22 $ 0.20 $ 0.41 $ 0.71
Book value per share $ 8.08 $ 5.76 $ 8.08 $ 5.76
Cash dividends
per share $ 0.15 $ 0.15 $ 0.30 $ 0.30
(1) Weighted daily average balance for period noted.
(2) Amount used for earnings per common share computation.
STATE BANCORP, INC. AND SUBSIDIARIES
NET INTEREST INCOME ANALYSIS
For the Three Months Ended September 30, 2007 and 2006
(unaudited)
(dollars in thousands)
2007
------------------------------
Average
Average Yield
Balance(1) Interest /Cost
------------------------------
ASSETS:
Interest-earning assets:
Securities(2) $ 516,884 $ 6,455 4.95%
Federal Home Loan Bank and
other restricted stock 8,494 231 10.79
Federal funds sold 2 -- --
Securities purchased under agreements
to resell 2,989 37 4.91
Interest-bearing deposits 1,370 17 4.92
Loans and leases(3) 1,003,747 20,816 8.23
------------------------------
Total interest-earning assets 1,533,486 $ 27,556 7.13%
------------------------------
Non-interest-earning assets 109,660
----------
Total Assets $1,643,146
==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Savings deposits $ 567,816 $ 4,270 2.98%
Time deposits 440,431 5,450 4.91
------------------------------
Total savings and time deposits 1,008,247 9,720 3.82
------------------------------
Federal funds purchased 10,318 140 5.38
Other temporary borrowings 148,826 1,981 5.28
Subordinated notes 10,000 231 9.16
Junior subordinated debentures 20,620 467 8.99
------------------------------
Total interest-bearing liabilities 1,198,011 $ 12,539 4.15%
------------------------------
Demand deposits 317,381
Other liabilities 18,675
----------
Total Liabilities 1,534,067
Stockholders' Equity 109,079
----------
Total Liabilities and
Stockholders' Equity $1,643,146
==========
Net interest income/margin $ 15,017 3.89%
====
Less tax-equivalent basis adjustment (84)
--------
Net interest income $ 14,933
========
------------------------------
2006
------------------------------
Average
Average Yield
Balance(1) Interest /Cost
------------------------------
ASSETS:
Interest-earning assets:
Securities(2) $ 529,816 $ 6,003 4.50%
Federal Home Loan Bank and other
restricted stock 1,794 19 4.20
Federal funds sold 18,891 248 5.21
Securities purchased under agreements
to resell 1,522 20 5.21
Interest-bearing deposits 1,318 16 4.82
Loans and leases(3) 951,922 20,046 8.35
------------------------------
Total interest-earning assets 1,505,263 $ 26,352 6.95%
------------------------------
Non-interest-earning assets 124,577
----------
Total Assets $1,629,840
==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Savings deposits $ 613,572 $ 4,175 2.70%
Time deposits 498,208 5,962 4.75
------------------------------
Total savings and time deposits 1,111,780 10,137 3.62
------------------------------
Federal funds purchased 3,386 47 5.51
Other temporary borrowings 6,966 125 7.12
Subordinated notes 10,000 230 9.13
Junior subordinated debentures 20,620 464 8.93
------------------------------
Total interest-bearing liabilities 1,152,752 $ 11,003 3.79%
------------------------------
Demand deposits 321,475
Other liabilities 93,440
----------
Total Liabilities 1,567,667
Stockholders' Equity 62,173
----------
Total Liabilities and
Stockholders' Equity $1,629,840
==========
Net interest income/margin $ 15,349 4.05%
====
Less tax-equivalent basis adjustment (80)
--------
Net interest income $ 15,269
========
(1) Weighted daily average balance for period noted.
(2) Interest on securities includes the effects of tax-equivalent
basis adjustments, using a 34% tax rate. Tax-equivalent basis
adjustments were $52 and $47 in 2007 and 2006, respectively.
(3) Interest on loans and leases includes the effects of
tax-equivalent basis adjustments, using a 34% tax rate.
Tax-equivalent basis adjustments were $32 and $33 in 2007 and
2006, respectively.
STATE BANCORP, INC. AND SUBSIDIARIES
NET INTEREST INCOME ANALYSIS
For the Nine Months Ended September 30, 2007 and 2006
(unaudited)
(dollars in thousands)
2007
------------------------------
Average
Average Yield
Balance(1) Interest /Cost
------------------------------
ASSETS:
Interest-earning assets:
Securities(2) $ 518,053 $ 18,797 4.85%
Federal Home Loan Bank and other
restricted stock 5,793 328 7.57
Federal funds sold 8,203 319 5.20
Securities purchased under agreements
to resell 45,110 1,786 5.29
Interest-bearing deposits 1,446 53 4.90
Loans and leases(3) 999,929 62,015 8.29
------------------------------
Total interest-earning assets 1,578,534 $ 83,298 7.06%
------------------------------
Non-interest-earning assets 113,064
----------
Total Assets $1,691,598
==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Savings deposits $ 610,143 $ 13,871 3.04%
Time deposits 503,215 18,624 4.95
------------------------------
Total savings and time deposits 1,113,358 32,495 3.90
------------------------------
Federal funds purchased 7,323 299 5.46
Other temporary borrowings 89,509 3,612 5.40
Subordinated notes 10,000 691 9.24
Junior subordinated debentures 20,620 1,382 8.96
------------------------------
Total interest-bearing liabilities 1,240,810 $ 38,479 4.15%
------------------------------
Demand deposits 318,232
Other liabilities 24,839
----------
Total Liabilities 1,583,881
Stockholders' Equity 107,717
----------
Total Liabilities and
Stockholders' Equity $1,691,598
==========
Net interest income/margin $ 44,819 3.80%
====
Less tax-equivalent basis adjustment (253)
--------
Net interest income $ 44,566
========
------------------------------
2006
------------------------------
Average
Average Yield
Balance(1) Interest /Cost
------------------------------
ASSETS:
Interest-earning assets:
Securities(2) $ 535,254 $ 18,251 4.56%
Federal Home Loan Bank and other
restricted stock 2,122 87 5.48
Federal funds sold 15,724 588 5.00
Securities purchased under agreements
to resell 46,778 1,635 4.67
Interest-bearing deposits 1,096 39 4.76
Loans and leases(3) 926,351 57,216 8.26
------------------------------
Total interest-earning assets 1,527,325 $ 77,816 6.81%
------------------------------
Non-interest-earning assets 117,043
----------
Total Assets $1,644,368
==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
Savings deposits $ 659,720 $ 12,925 2.62%
Time deposits 473,294 15,907 4.49
------------------------------
Total savings and time deposits 1,133,014 28,832 3.40
------------------------------
Federal funds purchased 3,740 139 4.97
Other temporary borrowings 12,088 481 5.32
Subordinated notes 4,212 286 9.08
Junior subordinated debentures 20,620 1,321 8.57
------------------------------
Total interest-bearing liabilities 1,173,674 $ 31,059 3.54%
------------------------------
Demand deposits 325,127
Other liabilities 85,821
----------
Total Liabilities 1,584,622
Stockholders' Equity 59,746
----------
Total Liabilities and
Stockholders' Equity $1,644,368
==========
Net interest income/margin $ 46,757 4.09%
====
Less tax-equivalent basis adjustment (264)
--------
Net interest income $ 46,493
========
(1) Weighted daily average balance for period noted.
(2) Interest on securities includes the effects of tax-equivalent
basis adjustments, using a 34% tax rate. Tax-equivalent basis
adjustments were $160 in 2007 and 2006.
(3) Interest on loans and leases includes the effects of
tax-equivalent basis adjustments, using a 34% tax rate.
Tax-equivalent basis adjustments were $93 and $104 in 2007 and
2006, respectively.