LAKE HAVASU CITY, Ariz., Jan. 22, 2016 (GLOBE NEWSWIRE) -- State Bank Corp. (OTCQB:SBAZ) (“Company”), the holding company for Mohave State Bank (“Bank”), today announced net income grew to $946,000 , or $0.16 per diluted share, for the fourth quarter of 2015, as compared to net income of $517,000, or $0.09 per diluted share, for the same period of 2014. 

For the year ended December 31, 2015, net income totaled $3.47 million, or $0.59 per diluted share. Following a $2.8 million income tax benefit as a result of the reduction of its deferred tax valuation allowance State Bank Corp.’s net income was $5.40 million, or $0.92 per diluted share, in 2014.  Pretax income increased 101.5% to $5.18 million for the year ended 2015 compared to $2.57 million for the year ended 2014, reflecting the growth in net interest income and reduced credit resolution costs. 

“Our results this quarter and the full year reflect our focus on improving profitability and making the necessary investments to drive future growth.  Effectively managing each of these areas is key to helping us take advantages of the opportunities we see ahead,” stated Brian M. Riley, President and Chief Executive Officer.  “Both loan and deposit growth is strong compared to a year ago, despite the loan and deposit sale from the sale of our Yuma branch during the preceding quarter.  We are focused on building the premier community banking franchise in Arizona and are positioning ourselves to grow, serve our customers and create strong returns for our shareholders.”

Fourth Quarter 2015 Financial Highlights: 

  • Net income increased 83.0% to $946,000 in the fourth quarter, compared to $517,000 in the fourth quarter 2014. 
  • The net interest margin remained strong at 4.29%.
  • Non-performing assets decreased by $4.3 million to $6.4 million on continued resolution of problem credits and the sale of a large foreclosed asset.  Non-performing assets dropped to their lowest level since 2008.
  • Core deposits comprise 79.1% of total deposits at December 31, 2015.  
  • Tangible book value per share increased to $6.47 per share, compared to $5.99 a year ago.

No provision for loan losses was taken in the fourth quarter with net credit recoveries of $65,000.  The allowance for loan losses totaled $3.1 million at December 31, 2015, or 1.42% of loans held for investment. 

Total assets were $325.3 million at December 31, 2015, an increase of $8.5 million, or 2.7% from $316.8 million at December 31, 2014.  Total loans held for investment were $216.4 million as compared to $209.0 million at December 31, 2014.  Total loan comparisons were affected by the sale of loans from the Yuma branch of $11.1 million in the third quarter. 

Total deposits were $282.8 million, an increase of $5.3 million, or 1.9%, from $277.5 million at December 31, 2014.  Core deposits, defined as noninterest bearing demand, money market, NOW and savings accounts, increased 4.13% compared to a year earlier to $223.9 million at December 31, 2015.  Total deposits and core deposit comparisons were affected by the sale of deposits from the Yuma branch of $16.5 million and $12.8 million, respectively.  Core deposits now comprise 79.1% of total deposits.   

Nonperforming assets were $6.4 million at December 31, 2015, a 56.8% decrease compared to $14.8 million at December 31, 2014.  Nonperforming assets represented 1.97% of total assets at December 31, 2015, down from 4.67% at December 31, 2014.

Shareholder equity increased to $37.8 million at December 31, 2015, from $35.1 million at December 31, 2014.  At December 31, 2015 tangible book value per share improved 8.0% to $6.47 per share compared to $5.99 per share at December 31, 2014.

Capital Management

Community banking organizations, including State Bank Corp. and Mohave State Bank, became subject to new capital requirements on January 1, 2015, and certain provisions of the new rules will be phased in from 2015 through 2019. The Company’s consolidated capital ratios and the Bank’s capital ratios exceeded the regulatory guidelines for a well-capitalized financial institution under the Basel III and Dodd Frank Wall Street Reform requirements at December 31, 2015.  The Bank reported the following capital ratios at December 31, 2015:

Common Equity Tier 1 Capital Ratio 14.70%
Tier 1 Leverage Ratio  11.61%
Tier 1 Capital Ratio 14.70%
Total Capital Ratio 15.91%

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 five full-service branches: two in Lake Havasu City, two in Kingman and one in Bullhead City, Arizona. The Company is traded over-the-counter as SBAZ. For further information, please visit the web site: www.mohavestbank.com.

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.
 Statement of Operations
           
   For the Quarter Ended   Year to Date 
 Dollars in thousands - Unaudited12/31/2015 9/30/2015 12/31/2014 12/31/2015 12/31/2014
 Statements of Operations         
 Interest income         
 Loans, including fees$  3,019  $  3,186  $  2,759  $  12,019  $  10,858 
 Securities    212     209     207     858     811 
 Fed funds and other   19     14     26     65     70 
 Total interest income   3,250     3,409     2,992     12,942     11,739 
           
 Interest expense         
 Deposits   151     153     141     581     552 
 Borrowings   1     1     14     26     56 
 Total interest expense   152     154     155     607     608 
           
 Net interest income   3,098     3,255     2,837     12,335     11,131 
           
 Provision for loan losses     425     75     885     695 
 Net interest income after loan loss provision   3,098     2,830     2,762     11,450     10,436 
           
 Noninterest income         
 Service charges on deposits   85     89     118     358     430 
 Mortgage loan fees   190     241     150     928     432 
 Gain on sale of loans   253     180     426     1,492     1,260 
 Gain/(Loss) on securities     -     -     (8)    (42)
 Other income   174     886     209     1,435     761 
 Total noninterest income   702     1,396     903     4,205     2,841 
           
 Noninterest expense         
 Salaries and employee benefits   1,483     1,447     1,387     5,913     5,310 
 Net occupancy expense   90     102     94     367     377 
 Equipment expense   44     47     37     175     152 
 Data processing   243     246     281     1,069     1,078 
 Director fees & expenses   66     55     62     231     202 
 Insurance   35     26     26     112     114 
 Marketing & promotion   69     57     82     334     332 
 Professional fees   180     82     85     434     485 
 Office expense   70     28     28     163     109 
 Regulatory assessments   32     106     113     353     444 
 OREO and repossessed assets   39     214     791     650     1,579 
 Other expenses   149     158     82     676     524 
 Total noninterest expense   2,500     2,568     3,068     10,477     10,706 
           
 Income (loss) before provision (benefit) for income taxes   1,300     1,658     597     5,178     2,571 
           
 Provision (benefit) for income taxes   354     591     80     1,712     (2,825)
 Net Income (Loss)$  946  $  1,067  $  517  $  3,466  $  5,396 
           
           
  Per Share Data          
  Basic EPS $  0.16  $  0.18  $  0.09  $  0.59  $  0.92 
  Diluted EPS $  0.16  $  0.18  $  0.09  $  0.59  $  0.92 
           
  Average shares outstanding          
 Basic  5,849,444   5,866,038   5,868,038   5,862,847   5,868,038 
 Effect of dilutive shares    -     -     -     -     - 
 Diluted  5,849,444   5,866,038   5,868,038   5,862,847   5,868,038 

 

State Bank Corp. 
Balance Sheets 
   
     
Dollars in thousands - Unaudited12/31/2015 12/31/2014 
Consolidated Balance Sheets    
     
Assets    
Cash and cash equivalents$  1,899  $  1,679  
Interest bearing deposits   4,167     3,459  
Overnight Funds   29,250     31,740  
Held for maturity securities   19     27  
Available for sale securities   46,881     39,814  
Total cash and securities   82,216     76,719  
     
Loans held for sale, before reserves   4,457     1,300  
Gross loans held for investment   216,357     209,012  
Loan loss reserve   (3,089)    (2,954) 
Total net loans   217,725     207,358  
     
Premises and equipment, net   8,195     9,892  
Other real estate owned   4,247     9,307  
Federal Home Loan Bank and other stock   2,126     1,917  
Company owned life insurance   6,034     5,871  
Other assets   4,776     5,721  
     
Total Assets$  325,319  $  316,785  
     
     
Liabilities    
Non interest bearing demand$  70,648  $  62,612  
Money market, NOW and savings   153,156     152,308  
Time deposits <$100K   25,703     25,929  
Time deposits >$100K   33,329     36,644  
Total Deposits   282,836     277,493  
     
Securities sold under repurchase agreements   3,653     2,734  
Federal Home Loan Bank advances   -     -  
Subordinated debt   -     675  
Total Debt   3,653     3,409  
     
Other Liabilities   1,047     746  
Total Liabilities   287,536     281,648  
     
     
Shareholders' Equity    
Common stock   24,927     25,037  
Accumulated retained earnings   12,881     9,866  
Accumulated other comprehensive income   (25)    234  
Total shareholders equity   37,783     35,137  
     
Total liabilities and shareholders' equity$  325,319  $  316,785  

  

State Bank Corp.      
Five-Quarter Performance Summary      
      
  For the Quarter Ended  
Dollars in thousands - Unaudited12/31/20159/30/20156/30/20153/31/201512/31/2014 
Performance Highlights      
       
Earnings:      
Total revenue (Net int. income + nonint. income)$  3,800 $  4,651 $  4,123 $  3,965 $  3,740  
Net interest income$  3,098 $  3,255 $  3,118 $  2,864 $  2,837  
Provision for loan losses$  - $  425 $  350 $  110 $  75  
Noninterest income$  702 $  1,396 $  1,005 $  1,101 $  903  
Noninterest expense$  2,500 $  2,568 $  2,588 $  2,821 $  3,068  
Net income (loss)$  946 $  1,067 $  772 $  681 $  517  
       
Per Share Data:      
Net income (loss), basic $  0.16 $  0.18 $  0.13 $  0.12 $  0.09  
Net income (loss), diluted $  0.16 $  0.18 $  0.13 $  0.12 $  0.09  
Cash dividends declared$  - $  - $  - $  0.07 $  -  
Book value$  6.47 $  6.34 $  6.13 $  6.04 $  5.99  
Tangible book value$  6.47 $  6.34 $  6.13 $  6.04 $  5.99  
       
Performance Ratios:      
Return on average assets  1.17% 1.26% 0.93% 0.85% 0.65% 
Return on average equity  10.04% 11.63% 8.59% 7.68% 5.91% 
Net interest margin, taxable equivalent 4.29% 4.31% 4.22% 4.09% 4.07% 
Average cost of funds 0.21% 0.21% 0.21% 0.21% 0.22% 
Average yield on loans 5.45% 5.42% 5.30% 5.18% 5.33% 
Efficiency ratio 65.79% 55.21% 62.77% 71.15% 82.03% 
Non-interest income to total revenue 18.47% 30.02% 24.38% 27.77% 24.14% 
       
Capital & Liquidity:      
Total equity to total assets (EOP) 11.61% 11.43% 10.60% 10.80% 11.08% 
Tangible equity to tangible assets 11.61% 11.43% 10.60% 10.80% 11.08% 
Total loans to total deposits 78.07% 78.00% 78.83% 74.50% 75.01% 
Mohave State Bank      
Common equity tier 1 ratio 0.00% 14.10% 12.71% 13.36%  
Tier 1 leverage ratio 0.00% 10.83% 10.72% 10.92% 10.39% 
Tier 1 risk based capital 0.00% 14.10% 12.71% 13.36% 13.70% 
Total risk based capital  0.00% 15.27% 13.77% 14.52% 14.93% 
       
Asset Quality:      
Gross charge-offs$  4 $  373 $  449 $  124 $  351  
Net charge-offs (NCOs)$  (65)$  370 $  415 $  30 $  313  
NCO to average loans, annualized -0.12% 0.63% 0.73% 0.06% 0.60% 
Non-accrual loans$  2,154 $  4,570 $  3,732 $  6,444 $  5,522  
Other real estate owned$  4,246 $  6,141 $  6,696 $  7,595 $  9,307  
Repossessed assets $  - $  - $  - $  - $  -  
Non-performing assets (NPAs)$  6,400 $  10,711 $  10,428 $  14,039 $  14,829  
NPAs to total assets 1.97% 3.29% 3.08% 4.28% 4.67% 
Loans >90 days past due$  - $  - $  - $  - $  -  
NPAs + 90 days past due$  6,400 $  10,711 $  10,428 $  14,039 $  14,829  
NPAs + loans 90 days past due to total assets 1.97% 3.29% 3.08% 4.28% 4.67% 
Allowance for loan losses to total loans 1.40% 1.37% 1.26% 1.42% 1.42% 
Allowance for loan losses to NPAs 48.27% 28.23% 28.47% 21.61% 19.92% 
       
Period End Balances:      
Assets$  325,319 $  325,104 $  339,109 $  328,302 $  316,785  
Total Loans (before reserves)$  220,814 $  220,768 $  241,666 $  217,245 $  210,312  
Deposits$  282,836 $  283,035 $  297,928 $  287,237 $  277,493  
Stockholders' equity$  37,783 $  37,166 $  35,951 $  35,470 $  35,137  
Common stock market capitalization$  36,981    35,166    27,873    29,575    29,340  
Full-time equivalent employees   77    76    81    81    80  
Shares outstanding 5,842,145  5,861,000  5,868,038  5,868,038  5,868,038  
       
Average Balances:      
Assets$  323,157 $  337,463 $  333,387 $  319,817 $  318,835  
Earning assets$  294,500 $  307,376 $  301,427 $  285,722 $  283,657  
Total Loans (before reserves)$  221,705 $  235,051 $  228,847 $  214,992 $  207,130  
Deposits$  280,558 $  295,327 $  291,980 $  279,305 $  277,947  
Other borrowings$  3,846 $  4,327 $  4,817 $  4,481 $  4,481  
Stockholders' equity$  37,686    36,689    35,947    35,454    34,975  
Shares outstanding, basic - wtd 5,849,444  5,866,038  5,868,038   5,868,038  5,868,038  
Shares outstanding, diluted - wtd  5,849,444  5,866,038  5,868,038  5,868,038  5,868,038  

 

Contact: 
Brian M. Riley, President & CEO
Craig Wenner, EVP & CFO 
928 855 0000
www.mohavestbank.com

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