FORT LAUDERDALE, FL--(Marketwired - Jul 16, 2013) - Stonegate Bank (
Second Quarter 2013 Highlights:
- Total assets of $1.09 billion
- Net income of $2,265,000 for the second quarter of 2013
- 30 straight quarters of profitability
- Second quarter 2013 average net interest margin of 3.72%
- Tier 1 risk based capital ratio of 15.75% at June 30, 2013
Stonegate Bank (
Income and Expenses:
Total interest income increased from $10.1 million in the second quarter of 2012 to $10.8 million in the second quarter of 2013. Total interest expense decreased from $1.9 million in the second quarter of 2012 to $1.8 million in the second quarter of 2013. This decrease occurred even though total deposits increased $174 million period to period. Further, the Bank's cost of funds decreased 24 basis points period to period, which led to an increase in net interest income from $8.2 million in the second quarter of 2012 to $9.0 million in the second quarter of 2013.
Total non-interest income decreased to $760,000 in the second quarter of 2013 from $1.1 million in the second quarter of 2012.
The Bank realized security gains of $160,000 in the second quarter of 2013. These gains were taken largely to reduce risk and the overall size of the investment portfolio.
Non-interest expense increased slightly to $5.7 million for the second quarter of 2013 from $5.6 million for the second quarter of 2012.
Margin and Cost of Funds:
Total cost of funds declined from a 1.00% June 2012 month to date average to a 0.76% June 2013 month to date average. Stonegate Bank's net interest margin declined from a June 2012 month to date average of 4.02% to 3.72% for June 2013 month to date average. Excess liquidity of $120 million largely accounted for the margin decrease. The Bank had approximately $9.3 million in non-accretable discounts and $6 million in unamortized discounts at June 30, 2013.
Balance Sheet and Capital:
Total assets grew from $906 million on June 30, 2012 to $1.09 billion on June 30, 2013, a $188 million increase. Total loans increased $72 million from $676 million on June 30, 2012 to $748 million on June 30, 2013. Total deposits increased $174 million from $723 million on June 30, 2012 to $897 million on June 30, 2013. Non-interest bearing deposits represent 15.6% of total deposits. Total capital grew from $122.1 million on June 30, 2012 to $127.1 million on June 30, 2013. The undiluted book value of common shares of Stonegate Bank was $15.43 per share on June 30, 2013.
|Total Stonegate Bank - June 30, 2013|
|30 days past due||2,508|
|60 - 89 days past due||0|
*Approximately 25% of the nonaccrual loans are current with their 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 0.92% of total loans and 0.62% of total assets.
Management believes all non-performing assets and REO are written down to fair market value. Real estate owned decreased from $6.4 million on June 30, 2012 to $2.8 million on June 30, 2013.
The Bank's loan loss reserve was $16.5 million on June 30, 2013. This reserve represents 240% of all non-performing loans and 2.2% of total loans. Total loans past due more than 30 days increased from $1.9 million on June 30, 2012 to $2.5 million on June 30, 2013.
"Despite industry wide declining margins Stonegate Bank has demonstrated that respectable earnings can be realized without resorting to reducing expenses or releasing loan loss reserves," said Dave Seleski, President and Chief Executive Officer. "Most banks are experiencing lackluster growth compounded by decreasing margins in this low interest rate environment. I am proud of the fact that we continue to grow and our margins remain respectable. This is even more remarkable with Stonegate's overall liquidity increasing $120 million since June 30, 2012. The goal going forward is to continue to leverage this liquidity and reduce our cost of funds to protect the bank from any significant margin compression in the future. Overall credit quality continues to improve in all of our markets. Year to date annualized net charge offs as a percentage of average loans was approximately 0.05%. I find this very encouraging. These improved credit matrices make evaluating potential acquisitions easier and will mitigate some of the risks associated with these future acquisitions," 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.
|As of June 30, 2013|
|Cash and due from banks||$||201,783|
|Federal funds sold||10,000|
|Commercial real estate loans - owner occupied||171,025|
|Commercial real estate loans - other||248,650|
|Residential 1 - 4 family loans||115,821|
|Consumer and other loans||9,062|
|Allowance for loan losses||(16,524||)|
|Non-interest bearing deposits||$||139,949|
|Money market accounts||381,500|
|Core reciprocal deposits||165,495|
|Certificates of deposit||81,292|
|FHLB and other borrowings||20,000|
|Total liabilities and capital||$||1,094,624|
|For Period Ended June 30, 2013|
|Net interest income||17,339|
|Less: Provision for loan losses||996|
|Net interest income after provision for loan losses||16,343|
|Realized gains (losses) on AFS securities||905|
|Less: Salaries and benefits expense||6,879|
|Occupancy and equipment expense||1,855|
|Data processing expense||226|
|Legal and professional expenses||899|
|Loan and OREO expenses||337|
|Total non-interest income||11,729|
|Net income before income taxes||7,135|
- Banking & Budgeting