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Posts Net Income of $3.2 million - up 65% versus 2009
Solid Quarterly Net Interest Margin of 4.16%
Tangible Common Equity Ratio of 7.11%
Non-Performing Loans at 0.8% of Total Loans
JERICHO, N.Y., Oct. 18, 2010 (GLOBE NEWSWIRE) -- State Bancorp, Inc. (the "Company") (Nasdaq:STBC), parent company of State Bank of Long Island (the "Bank"), today reported net income of $3.2 million, or $0.17 per diluted common share, for the third quarter of 2010 compared with net income of $1.9 million, or $0.10 per diluted common share, a year ago. The 65.4% increase in 2010 third quarter earnings resulted from several factors, most notably a $785 thousand reduction in operating expenses, a $500 thousand reduction in the provision for loan losses, a $422 thousand increase in net interest income as a result of an improved interest margin and a $247 thousand increase in net gains on sales of securities. For the nine month period ended September 30, 2010, the Company recorded net income of $7.9 million, or $0.39 per diluted common share, compared with a net loss of $2.1 million, or $0.25 per diluted common share, in the September 2009 year-to-date period.
Commenting on the third quarter 2010 results, President and CEO Thomas M. O'Brien stated, "There are several very encouraging trends evident in our third quarter results. Most importantly, credit quality has remained fairly steady over the past few quarters. We continue to manage credit aggressively and proactively. While economic conditions seemed to slow noticeably in the quarter, the Company's loan quality indicators have been generally stable. The economy appears to be walking a fine line between retreating and modest growth.
"Even in the face of historically low interest rates, the Company's third quarter 2010 net interest margin remained very impressive at 4.16%. Operating expenses also continue to be a significant focus, declining by almost 7% from 2009 and 6% from the second quarter 2010. Additionally, our balance sheet liquidity is strong and all of the Company's capital ratios are significantly in excess of the regulatory definition of a "well capitalized" institution. In my opinion, the rewards from the aggressive strategies that we have employed have begun to materialize.