POMPANO BEACH, FL -- (Marketwired) -- 10/24/14 -- Stonegate Bank (NASDAQ: SGBK) ("Stonegate") reported net income of $3.6 million for the third quarter of 2014 or $0.34 per diluted common share ($0.37 per share net operating income, a non-GAAP measurement described below), as compared to the second quarter of 2014 earnings of $1.9 million or $0.18 per diluted common share ($0.37 per share net operating income).
Net operating income is a non-GAAP financial measurement used by management to evaluate and monitor financial results of operations excluding certain non-recurring items such as merger and acquisition related expenses. A table reconciling GAAP to non-GAAP measures is presented on page 13, Explanation of Certain Unaudited Non-GAAP Financial Measures.
Key highlights for the third quarter:
- Loans: Total loans grew $21.7 million during the third quarter of 2014 to $1.23 billion at September 30, 2014. Loan growth in the third quarter was largely due to the origination of $105.8 million in loans. Commercial real estate ("CRE") and construction and land development each accounted for 33% of the loan originations, with 18% in residential mortgages, 12% in consumer and other and 4% in commercial and industrial ("C&I"). The production for the current quarter was 27% fixed rate loans and 73% variable rate loans, mostly tied to the prime index rate.
- Asset Quality: Total loans past due 30 - 89 days, excluding nonaccrual loans, were $889,000 at September 30, 2014 as compared to $1.2 million at June 30, 2014. Nonaccrual loans were $5.0 million at September 30, 2014, or 0.40% of total loans, down from $7.5 million at June 30, 2014, or 0.62% of total loans. Other real estate owned declined to $33,000 as of September 30, 2014.
- Net Interest Income and Margin: Net interest income, on a tax equivalent basis, increased $125,000 for the three months ended September 30, 2014 as compared to the three months ended June 30, 2014. Net interest income totaled $14.1 million for the three months ended September 30, 2014. The third quarter 2014 net interest margin, on a tax equivalent basis, increased 6 basis points to 3.67% from 3.61% on a tax equivalent basis for the second quarter 2014. The increase in the margin is primarily a result of the increase in average loans outstanding and the use of cash to fund the increase.
- Noninterest Expense: Noninterest expense decreased to $9.4 million for the three months ended September 30, 2014 from $12.4 million for the three months ended June 30, 2014. This decrease was primarily due to the one-time costs in the second quarter associated with the conversion of Florida Shores Bancorp, Inc. and Subsidiaries (collectively, "Florida Shores") and related branch closure expenses. These one-time costs were approximately $2.4 million for the three months ended June 30, 2014.
- Capital: The Bank remained well-capitalized as of September 30, 2014 with capital of $195.0 million. The Bank's total risk-based capital ratio was 14.7%, the Bank's Tier 1 capital ratio was 13.5% and the Bank's leverage capital ratio was 10.7%.
Loans and Deposits
Loans outstanding at September 30, 2014 were $1.23 billion as compared to $1.21 billion at June 30, 2014, an increase of $21.7 million during the third quarter of 2014. This net increase is a result of organic loan growth.
The loan portfolio consists primarily of loans to individuals and small- and medium-sized businesses within our primary market area of South and West Florida. The table below shows the loan portfolio composition:
(in thousands of dollars) September 30, 2014 June 30, 2014
------------------ -----------------
Commercial $ 177,213 $ 180,243
Commercial real estate - owner
occupied 305,310 289,053
Commercial real estate - other 353,438 362,941
Construction and land development 104,416 100,193
Residential real estate 261,506 259,658
Consumer and other loans 42,408 31,136
------------------ -----------------
Total loans 1,244,291 1,223,224
Less: discount on loans acquired 9,209 9,895
Less: net deferred fees 1,460 1,388
------------------ -----------------
Recorded investment in loans 1,233,622 1,211,941
Less: Allowance for loan losses 18,429 18,296
------------------ -----------------
Net loans $ 1,215,193 $ 1,193,645
================== =================
New loan originations were $105.8 million during the third quarter of 2014. As of September 30, 2014, outstanding commitments were approximately $333 million with approximately $120 million representing new approved loan originations and approximately $62 million in unfunded construction and land development commitments.
Deposits were virtually unchanged at $1.41 billion at both September 30, 2014 and June 30, 2014. Noninterest-bearing deposits grew to $234.9 million at September 30, 2014 as compared to $233.9 million at June 30, 2014. Money market deposits grew from $767.9 million at June 30, 2014 to $776.8 million at September 30, 2014. During the third quarter the Bank experienced $14.0 million in expected runoff of certificates of deposit that were priced above market and were largely from the acquired banks.
The following table shows the composition of deposits as of September 30, 2014 and June 30, 2014:
(in thousands of dollars) September 30, 2014 June 30, 2014
------------------ -----------------
Noninterest bearing $ 234,906 $ 233,928
NOW 210,375 209,100
Money market 776,823 767,877
Savings 12,047 12,591
Certificates of deposit 176,337 190,346
------------------ -----------------
Total deposits $ 1,410,488 $ 1,413,842
================== =================
Credit Quality and Allowance for Loan Losses
As of September 30, 2014, the Bank's past due and nonaccrual loans totaled $5.9 million and were 0.5% of total loans as compared to $8.7 million or 0.7% at June 30, 2014 and $8.4 million or 1.07% at September 30, 2013. Loans past due 30-89 days were $889,000 versus $1.2 million at June 30, 2014, a decrease of $300,000. Legacy loans past due total $515,000 or approximately 60% of the total loans past due. Nonaccrual loans stood at $5.0 million at September 30, 2014, a decrease of $2.5 million from $7.5 million at June 30, 2014. This decrease was a result of the sale of two loans totaling $2.2 million and a loan for approximately $225,000 which was returned to accrual status during the third quarter of 2014. Legacy nonaccrual loans at September 30, 2014 are approximately $70,000 as compared to $1.9 million at June 30, 2014. Commercial real estate loans are $3.2 million or 65% of the nonaccrual loans. The Bank does not have any loans past due 90 days or more that are still accruing. As of September 30, 2014, there remains approximately $9 million in nonaccretable discounts on loans acquired. The Bank does not have any loans under which it participates in a loss share arrangement.
Nonperforming assets were $5.0 million as of September 30, 2014, a decline of $3.2 million from June 30, 2014. However, the decline from $9.8 million at March 31, 2014, the first quarter with the Florida Shores acquisition, is $5.0 million or 49% of the first quarter's total nonperforming assets. Other real estate owned is $33,000 as of September 30, 2014, down from $650,000 at June 30, 2014 and $1.5 million at March 31, 2013.
The following outlines nonperforming assets for the periods ended:
(in thousands of dollars) September 30, June 30,
2014 2014
------------- ------------
Nonaccrual $ 4,963 $ 7,526
Other real estate owned 33 654
------------- ------------
Total nonperforming assets $ 4,996 $ 8,180
============= ============
Nonperforming loans as a percentage of total
loans 0.40% 0.67%
Nonperforming assets as a percentage of total
assets 0.30% 0.49%
Loans modified as troubled debt restructuring were $12.0 million and $13.9 million at September 30, 2014 and June 30, 2014, respectively. Loans classified as troubled debt restructuring and on nonaccrual totaled $1.9 million as of September 30, 2014 and were unchanged from June 30, 2014. There were no loans modified as troubled debt restructuring during the third quarter of 2014. Specific reserves allocated to loans modified as troubled debt restructuring decreased from $1.3 million on June 30, 2014 to $1.1 million on September 30, 2014.
At September 30, 2014, the allowance for loan losses was $18.4 million, an increase of $133,000 from June 30, 2014. During the third quarter of 2014 the Bank recorded no provision for loan loss expense, and had $273,000 in charge-offs and recoveries of $406,000. Specific reserves decreased from $1.5 million at June 30, 2014 to $1.3 million at September 30, 2014. The general loan loss reserve on non-impaired loans increased approximately $330,000 during the third quarter. The allowance for loan losses represents 1.49% and 1.51% of total loans as of September 30, 2014 and June 30, 2014, respectively. Additionally, the allowance represents 2.03% of total legacy loans as of September 30, 2014.
The following table shows the activity in the allowance for loan losses for the three months ended:
September 30, June 30, September 30,
(in thousands of dollars) 2014 2014 2013
------------- ----------- -------------
Balance At Beginning Of Period $ 18,296 $ 17,983 $ 16,524
Charge-Offs (273) - (383)
Recoveries 406 313 206
Provision For Loan Losses - - 380
------------- ----------- -------------
Balance At End Of Period $ 18,429 $ 18,296 $ 16,727
============= =========== =============
The table below reflects the allowance allocation per loan category and percent of loans in each category to total loans for the periods indicated:
September 30, June 30, September 30,
(in thousands of dollars) 2014 2014 2013
------------- ------------- -------------
Amount % Amount % Amount %
------- ----- ------- ----- ------- -----
Commercial $ 2,276 12.4 $ 1,896 10.3 $ 1,690 10.1
Commercial real estate 10,584 57.4 12,058 65.9 11,516 68.8
Construction and land development 2,356 12.8 1,844 10.1 1,435 8.6
Residential real estate 2,393 13.0 2,393 13.1 2,022 12.1
Consumer and other loans 431 2.3 105 0.6 64 0.4
Unallocated 389 2.1 - 0.0 - 0.0
------- ----- ------- ----- ------- -----
Total $18,429 100.0 $18,296 100.0 $16,727 100.0
======= ===== ======= ===== ======= =====
The following is a summary of information pertaining to impaired loans for the three months ended:
September 30, June 30, September 30,
(in thousands of dollars) 2014 2014 2013
------------- ----------- -------------
Impaired loans without a valuation
allowance $ 7,923 $ 8,150 $ 11,218
Impaired loans with a valuation
allowance 8,658 10,414 8,865
------------- ----------- -------------
Total impaired loans $ 16,581 $ 18,564 $ 20,083
============= =========== =============
Valuation allowance related to
impaired loans $ 1,289 $ 1,495 $ 2,325
Net Interest Income and Margin
On a tax equivalent basis the Bank's net interest income for the three months ended September 30, 2014 was $14.1 million which was an increase of approximately $125,000 from the second quarter of 2014 and an increase of $4.9 million from the third quarter 2013. The increase from the second quarter of 2014 was a result of net loan growth while the increase over the third quarter of 2013 was due primarily to an increase in loans of $346 million from the Florida Shores acquisitions and organic growth. Average loans for the second quarter of 2014 were $1.19 billion as compared to $1.11 billion for the first quarter of 2014 and $726 million for the second quarter of 2013. The increase in deposits with interest at banks from June 2013 is primarily a result of the cash received with the Florida Shores acquisitions and the subsequent liquidation of the majority of their investment portfolio.
The net interest margin on a tax equivalent basis was 3.67% for the third quarter 2014 as compared to 3.61% for the second quarter 2014 and 3.67% for the second quarter of 2013. This represented an increase of 6 basis points from the second quarter of 2014 and no change from the third quarter 2013. The yield on total earning assets was 4.14% for the third quarter of 2014 versus 4.09% for the second quarter of 2014 with the increase due primarily to average loans outstanding increasing during the third quarter while the lower yielding deposits with interest at banks decreased. The yield on loans decreased from 5.14% to 5.03% from the prior quarter. The average yield on paying liabilities declined 2 basis points in the third quarter of 2014 from the second quarter of 2014 to 0.58% but is 24 basis points lower than the third quarter of 2013 which was 0.82%. The decline from the third quarter of 2013 was primarily due to the decrease in the cost of funds of legacy deposits and as a result of lower cost deposits assumed with the Florida Shores acquisitions. The Bank's cost of funds has declined from 0.68% for the September 2013 month-to-date average to 0.49% for the September 2014 month-to-date average.
The following table recaps yields and costs by various interest-earning asset and interest bearing liability account types for the current quarter, the previous quarter and the same quarter last year.
Yield and cost table (unaudited)
(in thousands of
dollars)
3Q14 2Q14
-------------------------- --------------------------
Average Average
Balance Interest Rate Balance Interest Rate
---------- --------- ----- ---------- --------- -----
ASSETS
Loans, Net(1)(2)(4) $1,218,116 $ 15,450 5.03% $1,194,718 $ 15,321 5.14%
Investment
Securities 88,822 300 1.34 85,103 302 1.42
Federal Funds Sold 20,000 10 0.20 16,268 19 0.47
Other
Investments(3) 2,422 22 3.60 2,422 25 4.14
Deposits with
interest at banks 194,987 143 0.29 256,813 183 0.29
---------- --------- ----- ---------- --------- -----
Total Earning
Assets 1,524,347 15,925 4.14% 1,555,324 15,850 4.09%
---------- --------- ----- ---------- --------- -----
LIABILITIES
Savings, NOW and
Money Market $ 999,423 $ 1,336 0.53% $1,011,515 $ 1,350 0.54%
Time Deposits 183,597 267 0.58 196,534 320 0.65
---------- --------- ----- ---------- --------- -----
Total Interest
Bearing Deposits 1,183,020 1,603 0.54 1,208,049 1,670 0.55
Other Borrowings 51,709 210 1.61 39,269 193 1.97
---------- --------- ----- ---------- --------- -----
Total Interest
Bearing
Liabilities 1,234,729 1,813 0.58% 1,247,318 1,863 0.60%
---------- --------- ----- ---------- --------- -----
Net interest spread
(tax equivalent
basis) (note 4) 3.56% 3.49%
===== =====
Net interest margin
(tax equivalent
basis) (note5) 3.67% 3.61%
===== =====
Yield and cost table (unaudited)
(in thousands of
dollars)
3Q13
--------------------------
Average
Balance Interest Rate
--------- ---------- -----
ASSETS
Loans, Net(1)(2)(4)$ 761,707 $ 10,458 5.45%
Investment
Securities 77,799 314 1,60
Federal Funds Sold 10,000 8 0.32
Other
Investments(3) 2,039 13 2.53
Deposits with
interest at banks 147,702 97 0.26
--------- ---------- -----
Total Earning
Assets 999,247 $ 10,890 4.32%
--------- ---------- -----
LIABILITIES
Savings, NOW and
Money Market $ 637,017 $ 1,170 0.73%
Time Deposits 108,682 246 0.90
--------- ---------- -----
Total Interest
Bearing Deposits 745,699 1,416 0.75
Other Borrowings 53,788 227 1.67
--------- ---------- -----
Total Interest
Bearing
Liabilities 799,487 1,643 0.82%
--------- ---------- -----
Net interest spread
(tax equivalent
basis) (note 4) 3.50%
=====
Net interest margin
(tax equivalent
basis) (note5) 3.67%
=====
(1) Average balances include nonaccrual loans, and are net of unearned loan
fees of $1,403, $1,388 and $954 for 3Q14, 2Q14 and 3Q13, respectively.
(2) Interest income includes fees on loans of $23, $99 and $21 for 3Q14,
2Q14 and 3Q13, respectively.
(3) "Other investments" consists of equity stock in the FHLB of Atlanta that
the Bank is required to own based on its transactions with the FHLB.
(4) Interest income and rates include the effects of a tax equivalent
adjustment using applicable statutory tax rates to adjust tax exempt
interest income on tax exempt loans to a fully taxable basis.
(5) Represents net interest income divided by total interest-earning assets.
Noninterest Income
Noninterest income for the third quarter of 2014 of $1.1 million was unchanged from June 30, 2014 and was $740,000 for the third quarter of 2013. While total noninterest income did not change quarter over quarter, it bears noting that service charges and fees on deposit accounts increased by $100,000 during the third quarter of 2014 over the second quarter of 2014 as a result of management's initiatives to reduce waived fees and increase noninterest income. This will continue to be an emphasis in future quarters.
Noninterest Expense
Noninterest expense for the three months ended September 30, 2014 declined from $12.4 million at June 30, 2014 to $9.4 million but was greater than the $6.1 million for the three months ended September 30, 2013. Of the $3.0 million decline, $2.4 million was due to one-time merger and conversion costs consisting of $1.4 million, costs of $810,000 associated with branch closings and $180,000 in connection with listing the Bank's common stock for trading on the Nasdaq Stock Market incurred during the second quarter.
Salaries and employee benefits were $5.3 million during the current quarter down from $5.7 million for the second quarter of 2014. This decline was due to approximately $360,000 in payments to employees associated with the Florida Shores acquisition and conversion. For the three months ended September 30, 2013 salaries and employee benefits were $3.4 million. The increase over September 30, 2013 is primarily the additional staff from the Florida Shores acquisition.
Occupancy and equipment expenses were $1.6 million, $2.5 million and $935,000 for the three months ended September 30, 2014, June 30, 2014 and September 30, 2013, respectively. The decline from the second quarter of 2014 was due to a one-time expense of $810,000 for branch closures. The increase when compared to the third quarter of 2013 is due to the expense associated with the additional branches added from the Florida Shores acquisition.
Data processing expenses for the three months ended September 2014 were $319,000 as compared to $1.4 million for the three months ended June 30, 2014. Expenses in the second quarter of 2014 included one-time core system termination fees and conversion costs of approximately $1.0 million related to the Florida Shores acquisition. Additionally, included in the results of operations for the second quarter are costs for data processing for the Florida Shores entities which was not recurring.
Professional fees declined slightly from $725,000 for the three months ended June 30, 2014 to $692,000 for the three months ended September 30, 2014 as compared to $719,000 and for the three months ended September 30, 2013. During the current quarter the Bank incurred approximately $210,000 in legal and other professional fees for merger related expenses. Legal costs and other costs associated with registering the Bank's common stock under the Securities Exchange Act of 1934, as amended, and listing the Bank's common stock for trading on the Nasdaq Stock Market were approximately $180,000 during the second quarter of 2014. Included in professional fees for the quarter ended September 30, 2013 was approximately $225,000 of merger related costs.
The decline in loan and other real estate expenses during the quarter ended September 30, 2014 from the prior quarter was a result of the reversal of an accrual for real estate taxes associated with delinquent loans and other real estate owned. This is a direct result of the improvement in the Bank's nonperforming assets.
The table below outlines the expenses for the quarters ended:
September 30, June 30, September 30,
2014 2014 2013
------------- ---------- -------------
(in thousands of dollars)
Salaries and employee benefits $ 5,313 $ 5,706 $ 3,435
Occupancy and equipment expense 1,589 2,484 935
FDIC insurance and state assessments 251 327 192
Data processing 319 1,430 151
Loan and other real estate expense (83) 127 152
Professional fees 692 725 719
Core deposit intangible amortization 327 327 56
Other operating expenses 1,012 1,271 474
------------- ---------- -------------
Totals $ 9,420 $ 12,397 $ 6,114
============= ========== =============
About Stonegate Bank
Stonegate Bank is a full-service commercial bank, providing a wide range of business and consumer financial products and services through its 14 banking offices in its target marketplace of South and West Florida, which is comprised primarily of Broward, Charlotte, Collier, Hillsborough, Lee, Miami-Dade, Palm Beach and Sarasota Counties in Florida. Stonegate's principal executive office and mailing address is 400 North Federal Highway, Pompano Beach, Florida 33062 and its telephone number is (954) 315-5500.
In conjunction with this earnings report the Company will offer a live participatory conference call to discuss the financial results for the third quarter of 2014. This telephone conference call will be held on Monday, October 27, 2014, beginning at 2:30 p.m. EDT. The call-in toll-free telephone number is 1-800-557-0169. The Conference ID# is 19997893. Participants will be asked for their First Name, Last Name and Company Name. An audio replay of the conference call will be available until November 3, 2014, and may be accessed telephonically at 1-855-859-2056 using Conference ID# 19997893.
Forward-Looking Statements
Any non-historical statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The following factors, among others, could cause our actual results to differ: the strength of the United States economy in general and the strength of the local economies in which we conduct operations; our need and ability to incur additional debt or equity financing; our ability to execute our growth strategy through expansion; our ability to comply with the extensive laws and regulations to which we are subject; changes in the securities and capital markets; changes in general market interest rates, legislative and regulatory changes, monetary and fiscal policies of the U.S. Treasury and the Federal Reserve, changes in the quality or composition of our loan portfolios, demand for loan products, changes in deposit flows, real estate values, and competition and other economic, competitive, and technological factors affecting our operations, pricing, products and services; and our ability to manage the risks involved in the foregoing. Additional factors can be found in our filings with the FDIC, which are available at the FDIC's internet site (http://www2.fdic.gov/efr). Forward-looking statements in this press release speak only as of the date of the press release and Stonegate Bank assumes no obligation to update any forward-looking statements or the reasons why actual results could differ.
Stonegate Bank and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands of dollars, except per share data)
September December
30, 2014 31, 2013
---------- ----------
Assets
Cash and due from banks $ 247,874 $ 190,226
Federal funds sold 20,000 10,000
Securities held to maturity (Fair value of $95,728
at September 30, 2014 and $71,781 at December 31,
2013) 94,612 71,639
Other investments 2,422 2,039
Loans, net of allowance for loan losses of $18,429
and $17,307 at September 30, 2014 and December 31,
2013, respectively 1,215,193 794,702
Premises and equipment, net 26,074 12,310
Bank-owned life insurance 22,668 17,339
Goodwill and intangible assets, net 18,353 1,101
Other real estate owned 33 2,120
Other assets 28,571 18,458
---------- ----------
Total assets $1,675,800 $1,119,934
========== ==========
Liabilities and Stockholders' Equity
Liabilities
Total deposits $1,410,488 $ 935,477
Other borrowings 53,156 42,733
Other liabilities 17,204 10,262
---------- ----------
Total liabilities 1,480,848 988,472
---------- ----------
Stockholders' Equity
Preferred stock, $5 par value, 4,000,000 shares
authorized;12,750 outstanding as of June 30, 2014
and none outstanding as of December 31, 2013 12,750 -
Common stock, $5 par value, 20,000,000 shares
authorized; 10,190,163 issued and 10,187,505
shares outstanding as of September 30, 2014 and
8,241,992 shares issued and 8,239,334 outstanding
as of December 31, 2013 50,951 41,210
Additional paid-in capital 87,231 52,810
Retained earnings 45,854 39,614
Treasury Stock (13) (13)
Accumulated other comprehensive income (loss) (1,821) (2,159)
---------- ----------
Total stockholders' equity 194,952 131,462
---------- ----------
Total liabilities and stockholders' equity $1,675,800 $1,119,934
========== ==========
Stonegate Bank and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)
(in thousands of dollars, except per share data)
For the three months ended
September September
30, June 30, 30,
2014 2014 2013
Interest income:
Interest and fees on loans $ 15,265 $ 15,190 $ 10,424
Interest on securities 300 302 314
Interest on federal funds sold and at
other banks 153 202 105
Other interest 22 25 13
----------- ----------- -----------
Total interest income 15,740 15,719 10,856
----------- ----------- -----------
Interest expense:
Interest on deposits 1,603 1,670 1,416
Other interest 210 193 227
----------- ----------- -----------
Total interest expense 1,813 1,863 1,643
----------- ----------- -----------
Net interest income 13,927 13,856 9,213
Provision for loan losses - - 380
----------- ----------- -----------
Net interest income after provision
for loan losses 13,927 13,856 8,833
----------- ----------- -----------
Noninterest income:
Service charges and fees on deposit
accounts 392 292 252
Realized gains on available for sale
securities - - (3)
Other noninterest income 710 771 493
----------- ----------- -----------
Total noninterest income 1,102 1,063 742
----------- ----------- -----------
Noninterest expense:
Salaries and employee benefits 5,313 5,706 3,435
Occupancy and equipment expenses 1,589 2,484 935
Data processing 319 1,430 151
Professional fees 692 725 719
Core deposit intangible amortization 327 327 56
Other operating expenses 1,180 1,725 818
----------- ----------- -----------
Total noninterest expense 9,420 12,397 6,114
----------- ----------- -----------
Income before income taxes 5,609 2,522 3,461
Income tax 2,018 618 1,242
----------- ----------- -----------
Net income 3,591 1,904 2,219
Preferred stock dividend 32 64 -
----------- ----------- -----------
Net income applicable to common
stock $ 3,559 $ 1,840 $ 2,219
=========== =========== ===========
Earnings per common share:
Basic $ 0.35 $ 0.18 $ 0.27
Diluted 0.34 0.18 0.26
Common shares used in the calculation
of earnings per share:
Basic 10,100,763 10,090,855 8,239,334
Diluted 10,424,298 10,414,438 8,434,551
Stonegate Bank and Subsidiaries
CONDENSED FINANCIAL HIGHLIGHTS
(in thousands of dollars)
As of
September September
30, June 30, 30,
2014 2014 2013
------------ ---------- ------------
BALANCE SHEET ITEMS:
Assets $ 1,675,800 $1,656,857 $ 1,086,162
Total loans 1,215,193 1,193,645 763,480
Deposits 1,410,488 1,413,842 888,667
Stockholders' equity 194,952 191,174 128,943
CAPITAL RATIOS:
Total capital to risk weighted
assets 14.7% 14.8% 17.0%
Tier 1 capital to risk weighted
assets 13.5 13.5 15.7
Tier 1 capital to average assets 10.7 10.4 11.9
AVERAGE BALANCE SHEET ITEMS:
Assets $ 1,677,992 $1,690,678 $ 1,094,659
Interest earning assets 1,524,347 1,555,324 999,247
Loans 1,218,116 1,194,718 761,707
Interest bearing liabilities 1,234,729 1,247,318 799,487
Deposits 1,416,488 1,450,124 894,069
Stockholders' equity 194,080 189,706 128,759
Stonegate Bank and Subsidiaries
CONDENSED FINANCIAL HIGHLIGHTS
(in thousands of dollars, except per share data)
Three Months Ended
September September
30, June 30, 30,
2014 2014 2013
------------ ----------- ------------
FINANCIAL DATA:
Net interest income $ 13,927 $ 13,856 $ 9,213
Net interest income - tax equivalent 14,112 13,897 9,109
Noninterest income 1,102 1,063 742
Noninterest expense 9,420 12,397 6,114
Income tax 2,018 618 1,242
Net income 3,591 1,904 2,219
Preferred stock dividend 32 60 -
Net income attributed to common shares 3,559 1,840 2,219
Weighted average number of common
shares outstanding:
Basic 10,100,763 10,090,855 8,239,334
Diluted 10,424,298 10,414,438 8,476,269
Per common share data:
Basic $ 0.35 $ 0.18 $ 0.27
Diluted 0.34 0.18 0.26
Cash dividend declared to common
shares 408 406 330
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with GAAP. The Company's management uses these non-GAAP financial measures in their analysis of the Company's performance. These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or transactions that in management's opinion can distort period-to-period comparisons of the Company's performance. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company's core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP disclosures are included as tables at the end of this release. Refer to press release supplemental table for this reconciliation.
Reconciliation of GAAP to non-GAAP Measures
(in thousands of dollars)
September 30, June 30,
2014 2014
------------- ------------
Interest income, as reported (GAAP) $ 15,740 $ 15,719
Tax equivalents adjustments 185 131
------------- ------------
Interest income (tax equivalent) $ 15,925 $ 15,850
============= ============
Net interest income, as reported (GAAP) $ 13,927 $ 13,856
Tax equivalent adjustments 185 131
------------- ------------
Net interest income (tax equivalent) $ 14,112 $ 13,987
============= ============
Net income GAAP $ 3,591 $ 1,904
Non-interest expense adjustments:
Merger and acquisition related expenses 89 1,426
Branch closure expenses - 810
Professional expenses 213 180
------------- ------------
Tax effect using the effective tax rate for the
period presented 109 592
------------- ------------
Net operating income $ 3,784 $ 3,728
============= ============
Net operating income per common share $ 0.37 $ 0.37
============= ============
INVESTOR RELATIONS:
Dave Seleski
(Email Contact)
Stonegate Bank
(954) 315-5510
