FORT LAUDERDALE, FL--(Marketwire - Oct 16, 2012) - Stonegate Bank (
Third Quarter 2012 Highlights:
- Net income of $2,426,000 for the third quarter of 2012
- Total assets grew to $942 million from $848 million year over year
- 27 consecutive quarters of profitability
- 4.19% net interest margin for the month of September
- Tier 1 risk based capital ratio of 16.5%
- Total organic loan growth was 15% year to date
- Annualized 1.02% return on average assets
Income and Expenses:
Total interest income increased from $9.9 million in the third quarter of 2011 to $10.7 million in the third quarter of 2012. This came as a result of an increase of $107 million in total loans period to period. Total interest expense declined from $2.1 million for the third quarter of 2011 to $1.8 million in the third quarter of 2012. This occurred even though total deposits increased $78 million period to period. The Bank's strategy of reducing the size of the investment portfolio concurrently with increasing the loan portfolio has had a positive impact on net interest income as well as the net interest margin. This resulted in net interest income improving from $7.7 million in the third quarter of 2011 to $8.9 million in the third quarter of 2012.
Total non-interest income decreased to $777,000 in the third quarter of 2012 from $834,000 in the third quarter of 2011.
The Bank realized security gains of $639,000 in the third quarter of 2012. These gains were taken largely to reduce the size of the investment portfolio and to shorten its duration.
Non-interest expense increased to $5.8 million for the third quarter of 2012 from $5.6 million for the third quarter of 2011. The increase in non-interest expense is directly related to the growth of the sales staff in each of the Bank's markets.
Margin and Cost of Funds:
Total cost of funds declined from a 1.00% June 2012 month-to-date average to 0.92% September 2012 month-to-date average. Stonegate Bank's net interest margin increased from a June 2012 month-to-date average of 4.02% to September 2012 month-to-date average of 4.19%.
Balance Sheet and Capital:
Total assets grew from $848 million on September 30, 2011 to $942 million on September 30, 2012, a $94 million increase. Total loans increased $107 million from $584 million on September 30, 2011 to $691 million on September 30, 2012. Total deposits increased $78 million from $669 million on September 30, 2011 to $747 million on September 30, 2012. Non-interest bearing deposits represent 17.6% of total deposits. Total capital grew from $114.9 million on September 30, 2011 to $125.1 million on September 30, 2012. The undiluted book value of common shares of Stonegate Bank was $15.19 per share on September 30, 2012.
|Total Stonegate Bank|
|(in thousands)||Dec. 31, 2011||Mar. 31, 2012||Jun. 30, 2012||Sept. 30, 2012|
|30 days past due||656||1,304||979||1,811|
|60 - 89 days||0||0||890||304|
In order to better illustrate trends in asset quality, the chart above shows various categories and ending balances over the last four quarters. 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 decreased slightly from $6.7 million on June 30, 2012 to $6.1 million on September 30, 2012. Overall, non-performing loans represent 0.88% of total loans and 0.64% of total assets. Approximately half of the $6.1 million in non-performing loans are in the acquired First Commercial Bank of Tampa Bay portfolio.
Management believes all non-performing assets and REO are written down to fair market value. Real estate owned increased slightly from $6.4 million on June 30, 2012 to $6.9 million on September 30, 2012. Five properties represent 80% of the total balance of REO.
The Bank's loan loss reserve was $16.3 million on September 30, 2012. This reserve represents 267% of all non-performing loans and 2.36% of total loans. Total loans past due more than 30 days increased slightly from $1.8 million on June 30, 2012 to $2.1 million on September 30, 2012.
"The Bank is doing extremely well in terms of organic loan growth as well as overall profitability," said Dave Seleski, President and Chief Executive Officer. "Total year-to-date loan growth was $91 million, which represents 15% loan growth for the first nine months of the year. I am encouraged that this trend will continue in coming quarters as the general Florida economy continues to stabilize and in some regions improve. The increased loan growth has also improved our profitability. This is best illustrated by an overall improvement in our net interest income and a healthy annualized 1.02% return on assets. Net interest income improved from $21.2 million in the first nine months of 2011 to $25.1 million in the first nine months of 2012. This $3.9 million increase is a direct result of the Bank's loan growth and consistent net interest margin. The challenge in future quarters is maintaining the growth and margin without significantly adding to overall non-interest expense."
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 September 30, 2012|
|Cash and Due From Banks||$||88,089|
|Federal Funds Sold||-|
|Commercial Real Estate Loans - Owner Occupied||178,851|
|Commercial Real Estate Loans - Other||229,627|
|Residential 1-4 Family Loans||103,126|
|Allowance for Loan Losses||(16,334||)|
|Non-Interest Bearing Deposits||$||131,829|
|Money Market Accounts||424,558|
|CDARS Reciprocal Deposits||25,443|
|Certificates of Deposits||93,856|
|FHLB and Other Borrowings||20,120|
|Total Liabilities and Capital||$||942,173|
|For Period Ended September 30, 2012|
|Net Interest Income||25,107|
|Less: Provision for Loan Losses||2,546|
|Net Interest Income after Provision for Loan Losses||22,561|
|Realized Gains (Losses) on AFS Securities||2,741|
|Less: Salaries and Benefits Expense||9,858|
|Occupancy and Equipment Expense||2,660|
|Data Processing Expense||594|
|Legal and Professional Expense||1,272|
|Loan and OREO Expenses||525|
|Total Non-Interest Expense||17,345|
|Net Income Before Income Taxes||10,886|