Noninterest income increased by $195,000, or 11.1%, to $2.0 million for the nine months ended September 30, 2010 primarily due to an increase in gains from the sale of investment securities and mortgage loans. Noninterest expense decreased $77,000, or 1.2%, to $6.4 million from $6.5 million . 

Total assets increased $25.8 million, or 12.4%, to $233.9 million at September 30, 2010 from $208.1 million at December 31, 2009. The increase was primarily the result of an increase in total cash and cash equivalents and loans, including loans held for sale.

Net loans, including loans held for sale, increased $11.4 million, or 6.7%, to $182.9 million at September 30, 2010 from $171.5 million at December 31, 2009, as our one- to four-family residential mortgage loans increased $12.6 million to $138.0 million at September 30, 2010 from $125.4 million at December 31, 2009, primarily due to new loan originations. In contrast, consumer loans decreased $2.2 million to $11.3 million at September 30, 2010 from $13.5 million at December 31, 2009.

Deposits increased $25.6 million, or 14.8%, to $198.2 million at September 30, 2010 from $172.6 million at December 31, 2009. The increase resulted from seasonal deposit inflows from existing customers and deposits of $4.2 million held on behalf of subscribers for purchase of common stock in the recent Company stock offering.

Total equity capital was $17.6 million and $17.3 million at September 30, 2010 and at December 31, 2009, respectively. For the nine months ended September 30, 2010, we recorded net income of $205,000 and an increase in accumulated other comprehensive income of $89,000 to $174,000 at September 30, 2010 from December 31, 2009.

On October 29, 2010, SharePlus Federal Bank completed its Conversion from a federal mutual savings bank to a capital stock savings bank. SP Bancorp, Inc., was established as part of the conversion and sold 1,725,000 shares of common stock at $10 per share. Net proceeds of $14.8 million were raised in the stock offering, after deduction of estimated conversion costs of $1.7 million and excluding $678,000 which was loaned by the Company to a trust for the Employee Stock Ownership Plan. The Bank's ESOP is authorized to purchase up to 138,000 shares of common stock. The ESOP purchased 67,750 of those shares in the offering. The remaining 70,250 shares are expected to be purchased in the open market.  SP Bancorp., Inc.'s common stock is traded on the NASDAQ Capital Market under the symbol "SPBC."