State Bank Corp. Tops $1 Million Net For 2012

LAKE HAVASU CITY, Ariz., Feb. 1, 2013 (GLOBE NEWSWIRE) -- State Bank Corp. (OTCBB:SBAZ) ("Company"), the holding company for Mohave State Bank ("Bank"), today announced net income of $358,000 or $0.06 per diluted share, for the quarter ended December 31, 2012, as compared to a net income of $137,000, or $0.02 per diluted share, for the same period of 2011, an increase of 161 percent. For the year ended December 31, 2012, the Company reported net income of $1.02 million, or $0.18 per diluted share, as compared to net income of $542,000, or $0.10 per diluted share, in the same period of 2011, an increase of 88 percent.     

Fourth Quarter 2012 Highlights include:
  • Net Income increased 161 percent in the fourth quarter of 2012 from the same period of 2011.
  • Net credit losses fell to $8,000 in the fourth quarter of 2012, the lowest level in over five years.
  • OREO related expense decreased by 44 percent in the fourth quarter of 2012 from the same period of 2011.
  • Mortgage Department originated and sold a record 280 closed loans totaling $44.2 million in 2012.
  • The Bank's Tier 1 Leverage Capital Ratio reached 10 percent.
  • The Bank added Jason Anderson and Ruben Fontanes to its Board of Directors.

"By nearly all measures, 2012 was an outstanding year. The Company continues to make solid progress toward its recovery goals," commented Brian M. Riley, President & CEO. "While we are pleased to see improving economic conditions within the communities we serve, the dedication and persistence of our banking professionals has really made the difference."  

With real estate values continuing to stabilize and the credit environment improving, the Company was not required to provide any additional loan loss reserves during the fourth quarter. The Company provided $470,000 to its loan loss reserve during 2012. Net credit losses during the fourth quarter of 2012 were $8,000 as compared to $259,000 for the same period of 2011. 

Nonperforming assets were $27.6 million at December 31, 2012, a decrease of $5.0 million from $32.6 million at December 31, 2011. The allowance for loan and lease losses totaled $4.02 million, or 1.98 percent of total loans, at December 31, 2012. The Company continues to carefully monitor its level of loss reserves and will proactively make additions as necessary.

The Company's net interest margin continues to remain strong with fourth quarter results of 4.29 percent. The main component to this trend continues to be the decline in cost of funds, which decreased for the 24 th consecutive quarter to 0.43 percent for the three months ended December 31, 2012.

As of December 31, 2012, total assets were $275.9 million, a decrease of $7.0 million from $282.9 million at December 31, 2011. Total loans were $202.7 million at December 31, 2012 as compared to $200.4 million at December 31, 2011. Total deposits were $239.7 million at December 31, 2012 as compared to $243.6 million at December 31, 2011.   

Shareholder equity increased to $28.5 million at December 31, 2012 from $27.5 million at December 31, 2011.  This was a result of strong net operating income. The Bank must meet certain minimum capital requirements to satisfy federal and state laws. The following table provides the Bank's capital ratio at December 31, 2012:
  Actual Ratio Ratio to be well capitalized Consent Order Requirement
Leverage Ratio Tier 1 Capital to Risk-Weighted Assets Total Capital to Risk-Weighted Assets 10.00% 12.24% 13.50% 5.00% 6.00% 10.00% 9.25% N/A 12.00%

The Company maintains capital above the levels required by its Consent Order. The Company continues to make progress on the remaining two items of the Order: reducing classified assets and lowering its non-owner occupied commercial real estate loan concentration. 

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

The State Bank Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8162

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.
Five-Quarter Performance Summary
           
   For the Quarter Ended 
Dollars in thousands - Unaudited 12/31/2012 9/30/2012 6/30/2012 3/31/2012 12/31/2011
Performance Highlights          
           
Earnings:          
Total revenue (Net int. income + nonint. income)  $ 3,330  $ 2,788  $ 3,099  $ 3,185  $ 3,545
Net interest income  $ 2,652  $ 2,621  $ 2,567  $ 2,706  $ 2,980
Provision for loan losses  $ --  $ 100  $ 270  $ 100  $ --
Noninterest income  $ 678  $ 167  $ 532  $ 479  $ 565
Noninterest expense  $ 2,972  $ 2,425  $ 2,607  $ 2,911  $ 3,408
Net income (loss)  $ 358  $ 263  $ 222  $ 174  $ 137
           
Per Share Data:          
Net income (loss), basic  $ 0.06  $ 0.05  $ 0.04  $ 0.03  $ 0.02
Net income (loss), diluted  $ 0.06  $ 0.05  $ 0.04  $ 0.03  $ 0.02
Cash dividends declared  $ --  $ --  $ --  $ --  $ --
Book value  $ 5.00  $ 4.95  $ 4.90  $ 4.87  $ 4.83
Tangible book value  $ 5.00  $ 4.95  $ 4.90  $ 4.87  $ 4.83
           
Performance Ratios:          
Return on average assets 0.50% 0.36% 0.30% 0.24% 0.19%
Return on average equity 5.08% 3.77% 3.19% 2.52% 1.99%
Net interest margin, taxable equivalent 4.29% 4.05% 4.15% 4.49% 4.86%
Average cost of funds 0.43% 0.45% 0.48% 0.53% 0.56%
Average yield on loans 5.41% 5.55% 5.44% 5.64% 6.18%
Efficiency ratio 89.25% 86.98% 84.12% 91.40% 96.14%
Non-interest income to total revenue 20.36% 5.99% 17.17% 15.04% 15.94%
           
Capital & Liquidity:          
Total equity to total assets (EOP) 10.32% 9.72% 9.43% 9.59% 9.72%
Tangible equity to tangible assets 10.32% 9.72% 9.43% 9.59% 9.72%
Total loans to total deposits 84.53% 79.27% 76.27% 77.06% 82.29%
Mohave State Bank          
Tier 1 leverage ratio 10.00% 9.57% 9.50% 9.59% 9.39%
Tier 1 risk based capital 12.24% 12.17% 12.01% 11.79% 11.47%
Total risk based capital 13.50% 13.43% 13.27% 13.04% 12.73%
           
Asset Quality:          
Gross charge-offs  $ 110  $ 316  $ 350  $ 1,194  $ 307
Net charge-offs (NCOs)  $ 8  $ 173  $ 298  $ 1,145  $ 259
NCO to average loans, annualized 0.02% 0.35% 0.61% 2.30% 0.52%
Non-accrual loans  $ 10,569  $ 10,639  $ 10,919  $ 10,145  $ 14,288
Other real estate owned  $ 17,012  $ 18,287  $ 18,197  $ 18,871  $ 18,362
Repossessed assets  $ --  $ --  $ --  $ --  $ --
Non-performing assets (NPAs)  $ 27,581  $ 28,926  $ 29,116  $ 29,016  $ 32,650
NPAs to total assets 9.99% 9.97% 9.84% 10.05% 11.54%
Loans >90 days past due  $ --  $ 147  $ 133  $ --  $ 9
NPAs + 90 days past due  $ 27,581  $ 29,073  $ 29,249  $ 29,016  $ 32,659
NPAs + loans 90 days past due to total assets 9.99% 10.03% 9.88% 10.05% 11.55%
Allowance for loan losses to total loans 1.98% 2.04% 2.13% 2.11% 2.58%
Allowance for loan losses to NPAs 14.57% 13.92% 14.08% 14.22% 15.84%
           
Period End Balances:          
Assets  $ 275,955  $ 289,993  $ 296,040  $ 288,787  $ 282,834
Total Loans (before reserves)  $ 202,664  $ 196,919  $ 192,734  $ 195,259  $ 200,442
Deposits  $ 239,760  $ 248,428  $ 252,713  $ 253,370  $ 243,571
Stockholders' equity  $ 28,478  $ 28,184  $ 27,916  $ 27,705  $ 27,484
Common stock market capitalization  $ 14,528  $ 14,243  $ 15,668  $ 19,906  $ 11,146
Full-time equivalent employees  83  81  76  78  78
Shares outstanding  5,697,351  5,697,351  5,697,351  5,687,351  5,686,588
           
Average Balances:          
Assets  $ 284,658  $ 293,905  $ 292,928  $ 287,138  $ 290,948
Earning assets  $ 247,056  $ 258,891  $ 254,386  $ 247,444  $ 251,086
Total Loans (before reserves)  $ 203,091  $ 196,513  $ 194,938  $ 199,421  $ 199,978
Deposits  $ 246,759  $ 252,687  $ 252,687  $ 246,988  $ 247,934
Other borrowings  $ 8,247  $ 12,047  $ 11,728  $ 11,819  $ 14,696
Stockholders' equity  $ 28,208  $ 27,925  $ 27,870  $ 27,666  $ 27,570
Shares outstanding, basic - wtd  5,697,351  5,697,351  5,694,714  5,686,965  5,682,739
Shares outstanding, diluted - wtd  5,697,351  5,697,351  5,694,714  5,687,358  5,683,557
     
State Bank Corp.
Balance Sheets
     
     
Dollars in thousands - Unaudited 12/31/2012 12/31/2011
Consolidated Balance Sheets    
     
Assets    
Cash and cash equivalents  $ 2,196  $ 2,204
Interest bearing deposits  5,192  3,595
Overnight Funds  7,400  10,560
Held for maturity securities  51  633
Available for sale securities  22,890  29,823
Total cash and securities  37,729  46,815
     
Loans held for sale, before reserves  3,114  2,409
Gross loans held for investment  202,181  199,986
Loan loss reserve  (4,018)  (5,172)
Total net loans  201,277  197,223
     
Premises and equipment, net  10,299  10,508
Other real estate owned  17,012  18,362
Federal Home Loan Bank and other stock  1,916  2,403
Company owned life insurance  5,554  5,388
Other assets  2,168  2,135
     
Total Assets  $ 275,955  $ 282,834
     
     
Liabilities    
Non interest bearing demand  $ 47,401  $ 48,483
Money market, NOW and savings  119,028  118,310
Time deposits <$100K  31,294  35,373
Time deposits >$100K  42,037  41,405
Total Deposits  239,760  243,571
     
Securities sold under repurchase agreements  5,401  8,523
Federal Home Loan Bank advances  --  2,000
Subordinated debt  675  675
Total Debt  6,076  11,198
     
Other Liabilities  1,641  581
Total Liabilities  247,477  255,350
     
     
Shareholders' Equity    
Common stock  24,577  24,535
Accumulated retained earnings  3,392  2,375
Accumulated other comprehensive income  509  574
Total shareholders equity  28,478  27,484
     
Total liabilities and shareholders' equity  $ 275,955  $ 282,834
         
State Bank Corp.
Statement of Operations
         
   For the Quarter Ended   Year to Date 
Dollars in thousands - Unaudited 12/31/2012 12/31/2011 12/31/2012 12/31/2011
Statements of Operations        
Interest income        
Loans, including fees  $ 2,747  $ 3,088  $ 10,934  $ 11,838
Securities  164  247  784  1,107
Fed funds and other  13  12  64  57
Total interest income  2,924  3,347  11,782  13,002
         
Interest expense        
Deposits  257  342  1,169  1,590
Borrowings  15  25  68  183
Total interest expense  272  367  1,237  1,773
         
Net interest income  2,652  2,980  10,545  11,229
         
Provision for loan losses  --  --  470  696
Net interest income after loan loss provision  2,652  2,980  10,075  10,533
         
Noninterest income        
Service charges on deposits  118  133  435  498
Mortgage loan fees  118  96  386  345
Gain on sale of loans  296  202  972  579
OTTI Impairment  --  --  (510)  --
Other income  146  134  575  630
Total noninterest income  678  565  1,858  2,052
         
Noninterest expense        
Salaries and employee benefits  1,205  1,199  4,828  4,585
Net occupancy expense  83  69  325  326
Equipment expense  38  45  175  167
Data processing  258  226  970  901
Director fees & expenses  45  37  158  152
Insurance  67  67  269  212
Marketing & promotion  78  97  279  277
Professional fees  102  40  474  320
Office expense  35  49  156  195
Regulatory assessments  164  162  646  723
OREO and repossessed assets  756  1,364  2,249  3,826
Other expenses  141  53  387  359
Total noninterest expense  2,972  3,408  10,916  12,043
         
Income (loss) before provision (benefit) for income taxes  358  137  1,017  542
         
Provision (benefit) for income taxes  --  --  --  --
Net Income (Loss)  $ 358  $ 137  $ 1,017  $ 542
         
         
 Per Share Data         
 Basic EPS   $ 0.06  $ 0.02  $ 0.18  $ 0.10
 Diluted EPS   $ 0.06  $ 0.02  $ 0.18  $ 0.10
         
 Average shares outstanding         
 Basic   5,697,351  5,682,739  5,695,807  5,171,987
 Effect of dilutive shares   --  818  98  3,551
 Diluted   5,697,351  5,683,557  5,695,905  5,175,538
CONTACT: Brian M. Riley, President & CEO         Craig Wenner, EVP/Chief Financial Officer         Phone: (928) 855-0000

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