State Bancorp, Inc. Reports Second Quarter 2010 Results
The Company's second quarter 2010 average interest-earning asset yield was 4.95%, unchanged from the comparable period in 2009. The average yield on loans increased 14 basis points in the second quarter of 2010 to 5.44%. This improvement was due in part to the significant decline in non-accrual loans recorded in 2010 but was offset by a 64 basis point decline in the average yield on the Company's securities portfolio to 3.85% in the second quarter of 2010 versus 2009. The securities portfolio, which had an unrealized positive pre-tax mark to fair value of $11 million at June 30, 2010 and an estimated weighted average life of two years, decreased by $20 million to $369 million at June 30, 2010 versus the comparable 2009 date and also decreased by $36 million from March 31, 2010.
Contributing to the Company's lower funding costs in 2010 was a 35 basis point reduction in the Company's average cost of interest-bearing liabilities to 1.10% in the second quarter of 2010 versus 1.45% in the second quarter of 2009. The lower cost of funds resulted from growth in demand deposit balances (up $40 million or 12%) coupled with the Company's ongoing management of deposit rates during the past year as deposit pricing continues to ease in local markets. Total deposits decreased by $38 million to $1.4 billion at June 30, 2010 versus June 30, 2009 but remained stable compared to March 31, 2010. Also contributing to the reduction in 2010 funding costs was the Company's December 2009 exchange of its high-cost $10 million, 8.25% subordinated notes, which were due to mature in 2013, for newly issued common stock. The provision for loan losses was $5.5 million in the second quarter of 2010, representing an increase of $2.0 million versus the comparable 2009 period.
Net gains on sales of securities were $2.5 million in the second quarter of 2010 compared to $447 thousand for the same period last year and $256 thousand in the first quarter of 2010.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV