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SP Bancorp, Inc. Announces Increased Earnings For The 4th Quarter And Year Of 2010

PLANO, Texas, Feb. 14, 2011 (GLOBE NEWSWIRE) -- SP Bancorp, Inc. (Nasdaq:SPBC) (the "Company"), the holding company for SharePlus Federal Bank (the "Bank"), announced net income of $319,000 for the three months ended December 31, 2010, an increase of $157,000, or 96.9%, from the three months ended December 31, 2009 and an increase of $72,000, or 29.1%, from the three months ended September 30, 2010. For the year ended December 31, 2010, net income increased to $524,000 from $493,000 for the year ended December 31, 2009.

"We are pleased to end the year with additional capital, improved earnings and asset growth fueled by strong mortgage production. Completion of our initial public offering on October 29, 2010 further reinforced the Bank's already strong regulatory capital ratios, bolstered net interest income and provided funds for our continued, diversified growth in both loans and securities," said Jeff Weaver, President and Chief Executive Officer.


  • Quarterly Net Income Increases 96.9%: Net income for the three months ended December 31, 2010 increased to $319,000, or by 96.9%, when compared to $162,000 for the three months ended December 31, 2009 and by 29.1%, when compared to $247,000 for the three months ended September 30, 2010.
  • Annualized Return on Assets ("ROA") Improves: Annualized ROA for the quarter ended December 31, 2010 totaled 0.53%, compared to 0.28% for the quarter ended December 31, 2009. 
  • Stronger Loan Production: Increased production for single-family loans and commercial real-estate loans caused net loans to increase by $21.6 million, or 12.6%, from December 31, 2009.
  • Increased Non Interest Income: Noninterest income increased by $537,000, or 22.6%, to $2.9 million for the twelve months ended December 31, 2010 from $2.4 million for the twelve months ended December 31, 2009. 
  • Increased Deposits: Deposits increased by $15.6 million, or 9.1%, from December 31, 2009, fueled by increases in checking, money market and CD accounts.
  • IPO Completed: The completion of the Company's initial public offering in October 2010 increased the Bank's Total Risk-Based Capital, Tier 1 Risk-Based Capital and Tier 1 Core Capital ratios at December 31, 2010 to 18.46%, 17.70% and 11.78%, respectively, compared to 12.86%, 12.11% and 7.40%, respectively, at September 30, 2010.    
  • Charge-Offs Remain Low: Net charge-offs for the twelve months ended December 31, 2010 totaled $261,000, or 0.15% of average loans outstanding.
  Three Months Ended Twelve Months Ended
  December 31, December 31,
  2010 2009 2010 2009
    (Unaudited) (Unaudited) 
  (In thousands, except per share amounts)
Interest income  $ 2,662  $ 2,705  $ 10,344  $ 10,596
Interest expense 482 616 2,117 2,751
 Net interest income 2,180 2,089 8,227 7,845
Provision for loan losses 152 188 1,457 687
Net interest income after provision for loan losses 2,028 1,901 6,770 7,158
Noninterest income 957 615 2,908 2,371
Noninterest expense 2,471 2,221 8,847 8,674
Income before income tax expense 514 295 831 855
Income tax expense 195 133 307 362
 Net income  $ 319  $ 162  $ 524  $ 493
Basic and diluted earnings per share (1)  $ 0.15 $ N/A  $ 0.15 $ N/A
(1) Calculated from the stock conversion completion date of October 29, 2010.
  December 31, December 31,
  2010 2009
   (In thousands)
Total assets  $ 238,817  $ 208,132
Total cash and cash equivalents 11,814 11,717
Securities available for sale, at fair value 22,076 13,492
Loans held for sale 3,589 932
Loans, net 191,065 170,535
Premises and equipment, net 4,637 4,905
Federal Home Loan Bank of Dallas stock and other restricted stock, at cost 1,003 1,655
Other assets (1) 4,633 4,896
Deposits 188,244 172,591
Borrowings 15,987 15,995
Stockholders' equity  32,104 17,262
(1) Includes fixed annuity investment, accrued interest receivable, deferred tax assets and other assets. 
Nonperforming loans to total loans 2.83% 2.01%
Nonperforming assets to total assets 2.28% 1.65%
Annualized net charge-offs to average loans outstanding  0.15% 0.14%
Allowance for loan losses to non-performing loans at end of year 39.23% 27.42%
Allowance for loan losses to total loans at end of year 1.11% 0.55%

The increase in net income for the quarter ended December 31, 2010 reflected a slight increase of $91,000 in net interest income, a $36,000 decrease in the provision for loan losses and a $342,000 increase in noninterest income, partially offset by a $250,000 increase in noninterest expense and a $62,000 increase in income tax expense.

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