Stonegate Bank Announces First Quarter 2016 Operating Results
/EINPresswire.com/ -- POMPANO BEACH, FL -- (Marketwired) -- 04/26/16 -- Stonegate Bank (NASDAQ: SGBK) ("Stonegate") reported net income of $6.7 million for the first quarter of 2016 or $0.51 per diluted common share ($0.53 per share net operating income, a non-GAAP measurement described below), as compared to net income of $7.3 million for the fourth quarter of 2015 or $0.56 per diluted common share.
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. Information related to our use of non-GAAP financial measures and a table reconciling GAAP to non-GAAP measures used in this press release are presented below under the caption Non-GAAP Financial Measures - Reconciliation of GAAP to non-GAAP Measures.
Key highlights for the first quarter:
-
Loans: Total loans, net of discounts and deferred fees, grew $28.6 million during the first quarter of 2016 to $1.89 billion at March 31, 2016, a result of net organic loan growth during the quarter. Commercial real estate ("CRE") comprised 38% of new loan originations for the first quarter of 2016, based upon the outstanding balance as of March 31, 2016. Commercial and industrial ("C&I") accounted for 35% of the new loan originations; 4% of the new originations were construction; residential loans were 9% of new originations with the remaining balance in consumer and other loans. The loan production for the first quarter was comprised of 51% fixed rate loans. Approximately 44% of the variable rate loans originated in the first quarter were tied to LIBOR. On an annualized basis organic loan growth was approximately 6.2%.
-
Asset Quality: Total loans past due 30 - 89 days, excluding nonaccrual loans, were $454,000 at March 31, 2016, a decrease of $410,000 from December 31, 2015. Nonaccrual loans were $4.9 million at March 31, 2016, or 0.26% of total loans, a decrease from $6.6 million at December 31, 2015, or 0.36% of total loans. Other real estate owned was $561,000 at March 31, 2016, a decrease of $829,000 from December 31, 2015.
-
Net Interest Income and Margin: Net interest income, on a tax equivalent basis, decreased $689,000 for the three months ended March 31, 2016 as compared to the three months ended December 31, 2015. Net interest income totaled $21.1 million for the three months ended March 31, 2016. The net interest margin, on a tax-equivalent basis, declined to 3.92% for the first quarter of 2016 as compared to 4.06% for the fourth quarter of 2015 and a decrease over the net interest margin of 4.15% for the quarter ended March 31, 2015. The decrease from the fourth quarter of 2015 to the first quarter of 2016 in the margin was primarily a result of a decrease in the amount of accretable and nonaccretable discounts that were recognized during the first quarter.
-
Noninterest Expense: Noninterest expense increased slightly to $12.5 million for the three months ended March 31, 2016 from $12.3 million for the three months ended December 31, 2015.
-
Capital: Stonegate remained well-capitalized as of March 31, 2016 with capital of $289.5 million as compared to $282.6 million at December 31, 2015. As of March 31, 2016, Stonegate's total risk-based capital ratio was 12.2%; Stonegate's Tier 1 and Common Equity Tier 1 capital ratio were each 11.3%; and Stonegate's leverage capital ratio was 10.2%.
Loans and Deposits
Loans outstanding at March 31, 2016 were $1.89 billion as compared to $1.86 billion at December 31, 2015, an increase of $28.6 million during the first quarter of 2016.
The loan portfolio consists primarily of loans to individuals and small- and medium-sized businesses within Stonegate's primary market areas of South and West Florida. The table below shows the loan portfolio composition:
(in thousands of dollars) March 31, 2016 December 31, 2015
----------------- -----------------
Commercial $ 222,607 $ 216,163
Commercial real estate - owner occupied 501,201 499,949
Commercial real estate - other 553,152 534,449
Construction and land development 188,723 201,523
Residential real estate 332,274 333,339
Consumer and other loans 101,614 86,500
----------------- -----------------
Total loans 1,899,571 1,871,923
Less: discount on loans acquired 10,421 11,648
Less: net deferred fees 3,004 2,704
----------------- -----------------
Recorded investment in loans 1,886,146 1,857,571
Less: Allowance for loan losses 18,494 18,149
----------------- -----------------
Net loans $ 1,867,652 $ 1,839,422
================= =================
New loan originations were $148.4 million during the first quarter of 2016, with fundings of $121.9 million. As of March 31, 2016, outstanding commitments were approximately $364.7 million with approximately $89.9 million representing new approved loan originations and approximately $121.9 million in unfunded construction commitments.
Deposits increased to $2.09 billion at March 31, 2016 from $2.02 billion at December 31, 2015. Noninterest-bearing deposits were $423.9 million at March 31, 2016, an increase from $392.2 million at December 31, 2015, and represented approximately 20.3% of total deposits, an increase from December 31, 2015. Money market accounts increased $58.6 million to $1.11 billion at March 31, 2016, from $1.05 billion at December 31, 2015. Time deposits decreased approximately $19.2 million during the first quarter of 2016 due to runoff of acquired deposits that were priced above the market.
The following table shows the composition of deposits as of March 31, 2016 and December 31, 2015:
(in thousands of dollars) March 31, 2016 December 31, 2015
----------------- -----------------
Noninterest bearing $ 423,930 $ 392,230
NOW 314,052 311,809
Money market 1,107,028 1,048,454
Savings 94,739 102,793
Certificates of deposit 149,851 169,081
----------------- -----------------
Total deposits $ 2,089,600 $ 2,024,367
================= =================
Credit Quality and Allowance for Loan Losses
Loans past due 30-89 days were $454,000 at March 31, 2016, a decrease from $864,000 at December 31, 2015. The decrease in past due loans was partially a result of one loan for $200,000 being transferred to nonaccrual status during the current quarter. All past due loans at March 31 2016, were from the acquired portfolios. Nonaccrual loans stood at $4.9 million at March 31, 2016, a decrease from $6.6 million at December 31, 2015. This decrease was largely due to the payoff of three loans for $1.8 million, including one legacy loan of $1.7 million. Legacy nonaccrual loans were approximately $2.1 million at March 31, 2016 versus $3.6 million as of December 31, 2015. Residential loans classified as nonaccrual were $2.0 million or 40.9% of the nonaccrual loans and commercial real estate loans classified as nonaccrual were $1.8 million or 37.0% of the nonaccrual as of March 31, 2016. As of March 31, 2016, Stonegate did not have any loans past due 90 days or more that were still accruing. At March 31, 2016, there remained approximately $8.1 million in nonaccretable discounts on loans previously acquired. None of the acquired loans are subject to a loss share arrangement with the Federal Deposit Insurance Corporation.
Nonperforming assets (nonaccrual loans and other real estate owned) were $5.5 million as of March 31, 2016, a decrease of $2.5 million from December 31, 2015. Other real estate owned decreased to $561,000 as of March 31, 2016 as compared to $1.4 million as of December 31, 2015. The decrease was the result of the sale of one property during the quarter that was outstanding at December 31, 2015.
The following table outlines nonperforming assets for the periods ended:
March 31, December 31,
(in thousands of dollars) 2016 2015
------------ ------------
Nonaccrual $ 4,922 $ 6,634
Other real estate owned 561 1,390
------------ ------------
Total nonperforming assets $ 5,483 $ 8,024
============ ============
Nonperforming loans as a percentage of total
loans 0.26% 0.36%
Nonperforming assets as a percentage of total
assets 0.22% 0.34%
Loans modified as troubled debt restructuring were $9.1 million and $9.8 million at March 31, 2016 and December 31, 2015, respectively. Loans classified as troubled debt restructuring and on nonaccrual status were unchanged from December 31, 2015 at $450,000. There was one loan for $2.0 million which was modified as troubled debt restructuring during the first quarter of 2016. There were payoffs of $2.6 million of loans classified as TDRs during the first quarter of 2016. Specific reserves allocated to loans modified as troubled debt restructuring increased to $160,000 at March 31, 2016, from $106,000 at December 31, 2015.
At March 31, 2016, the allowance for loan losses was $18.5 million, an increase of $345,000 from December 31, 2015. During the first quarter of 2016, recoveries totaled $160,000 and charge-offs were $8,000. Additionally, $193,000 was added to the allowance for loan losses through a provision expense. Specific reserves decreased to $744,000 at March 31, 2016 from $778,000 at December 31, 2015. The allowance for loan losses represented 0.98% of total loans as of both March 31, 2016 and December 31, 2015. Additionally, the allowance represented 1.33% of total legacy loans as of March 31, 2016. Only legacy loans are covered by the allowance as acquired loans are recorded at their fair value on the date of acquisition and none of these loans have experienced significant deterioration above their initial estimate.
The following table shows the activity in the allowance for loan losses for the quarters ended:
March 31, December 31,
(in thousands of dollars) 2016 2015
------------ ------------
Balance at beginning of period $ 18,149 $ 18,023
Charge-offs (8) (300)
Recoveries 160 126
Provision for loan losses 193 300
------------ ------------
Balance at end of period $ 18,494 $ 18,149
============ ============
The table below reflects the allowance allocation per loan category and percent of loans in each category to total loans for the periods indicated:
March 31, December 31,
(in thousands of dollars) 2016 2015
----------------- -----------------
Amount % Amount %
---------- ----- ---------- -----
Commercial $ 2,546 13.8 $ 2,457 13.5
Commercial real estate 12,206 66.0 11,671 64.3
Construction and land development 1,612 8.7 1,702 9.4
Residential real estate 2,003 10.8 1,954 10.8
Consumer and other loans 127 0.7 365 2.0
---------- ----- ---------- -----
Total $ 18,494 100.0 $ 18,149 100.0
========== ===== ========== =====
The following is a summary of information pertaining to impaired loans for the three months ended:
March 31, December 31, March 31,
(in thousands of dollars) 2016 2015 2015
------------ ------------ ------------
Impaired loans without a valuation
allowance $ 6,869 $ 9,437 $ 7,489
Impaired loans with a valuation
allowance 6,489 6,571 8,034
------------ ------------ ------------
Total impaired loans $ 13,358 $ 16,008 $ 15,523
============ ============ ============
Valuation allowance related to
impaired loans $ 744 $ 778 $ 928
Net Interest Income and Margin
On a tax-equivalent basis Stonegate's net interest income for the three months ended March 31, 2016 was $21.1 million, a decrease of approximately $689,000 from the fourth quarter of 2015 and an increase of $922,000 from the first quarter 2015. While earning assets grew from the fourth quarter of 2015 to the first quarter of 2016, the decrease in net interest income from the fourth quarter of 2015 was a result of the decrease in accretable discounts and nonaccretable discounts recognized in the first quarter of 2016 as compared to the fourth quarter of 2015. The increase from the first quarter of 2015 was primarily a result of the organic growth. Average loans for the first quarter of 2016 were $1.87 billion as compared to $1.84 billion for the fourth quarter of 2015 and $1.68 billion for the first quarter of 2015.
The net interest margin on a tax-equivalent basis decreased from 4.06% for the fourth quarter of 2015 to 3.92% for the first quarter of 2016. The net interest margin was 4.15% for the first quarter of 2015. The average yield on total earning assets was 4.36% for the first quarter of 2016 versus 4.48% for the fourth quarter of 2015. The average yield on paying liabilities increased 3 basis points from 0.54% from the fourth quarter of 2015 to 0.57% for the first quarter of 2016. Stonegate's cost of funds has increased from 0.45% for the March 2015 month-to-date average to 0.46% for the March 2016 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)
1st Quarter 2016 4th Quarter 2015
--------------------------- ---------------------------
Average Average
Balance Interest Rate Balance Interest Rate
---------- -------- ------- ---------- -------- -------
ASSETS
Loans,
Net(1)(2)(4) $1,870,153 $ 22,729 4.89% $1,842,950 $ 23,412 5.04%
Investment
Securities 108,691 449 1.66 107,636 446 1.64
Federal Funds Sold 30,000 54 0.72 27,717 33 0.47
Other
Investments(3) 2,912 34 4.70 2,895 33 4.52
Deposits with
interest at banks 154,087 221 0.58 147,647 115 0.31
---------- -------- ------- ---------- -------- -------
Total Earning
Assets 2,165,843 23,487 4.36% 2,128,845 24,039 4.48%
---------- -------- ------- ---------- -------- -------
LIABILITIES
Savings, NOW and
Money Market $1,479,261 $ 1,969 0.54% $1,439,200 $ 1,802 0.50%
Time Deposits 161,401 215 0.54 173,311 239 0.55
---------- -------- ------- ---------- -------- -------
Total Interest
Bearing Deposits 1,640,662 2,184 0.54 1,612,511 2,041 0.50
Other Borrowings 58,801 217 1.48 63,371 223 1.40
---------- -------- ------- ---------- -------- -------
Total Interest
Bearing
Liabilities 1,699,463 2,401 0.57% 1,675,882 2,264 0.54%
---------- -------- ------- ---------- -------- -------
Net interest
spread (tax
equivalent basis)
(4) 3.79% 3.94%
======= =======
Net interest
margin (tax
equivalent basis)
(5) 3.92% 4.06%
======= =======
1st Quarter 2015
---------------------------
Average
Balance Interest Rate
---------- -------- -------
ASSETS
Loans,
Net(1)(2)(4) $1,677,378 $ 21,675 5.24%
Investment
Securities 104,809 434 1.68
Federal Funds Sold 20,147 15 0.30
Other
Investments(3) 2,822 36 5.17
Deposits with
interest at banks 163,596 124 0.31
---------- -------- -------
Total Earning
Assets 1,968,752 22,284 4.59%
---------- -------- -------
LIABILITIES
Savings, NOW and
Money Market $1,265,701 $ 1,481 0.47%
Time Deposits 231,554 382 0.67
---------- -------- -------
Total Interest
Bearing Deposits 1,497,255 1,863 0.50
Other Borrowings 58,487 257 1.78
---------- -------- -------
Total Interest
Bearing
Liabilities 1,555,742 2,120 0.55%
---------- -------- -------
Net interest
spread (tax
equivalent basis)
(4) 4.04%
=======
Net interest
margin (tax
equivalent basis)
(5) 4.15%
=======
(1) Average balances include nonaccrual loans, and are net of unearned loan
fees of $3,005, $2,589 and $2,372 for 1st Quarter 2016, 4th Quarter 2015
and 1st Quarter 2015, respectively.
(2) Interest income includes fees on loans of $47, $66 and $56 for 1st
Quarter 2016, 4th Quarter 2015 and 1st Quarter 2015, respectively.
(3) "Other investments" consists of equity stock in the Federal Home Loan
Bank of Atlanta ("FHLB") that Stonegate 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 of $2.3 million for the first quarter of 2016 declined from $2.5 million for the quarter ended December 31, 2015. During the fourth quarter of 2015 Stonegate recognized a non-recurring gain of $595,000 on the sale of an option contained in a land lease.
Noninterest Expense
Noninterest expense for the three months ended March 31, 2016 increased slightly to $12.5 million from $12.3 million at December 31, 2015 and was less than the $13.5 million for the three months ended March 31, 2015.
Salaries and employee benefits increased to $7.1 million for the first quarter of 2016 versus $6.7 million for the fourth quarter of 2016. This compares with $7.0 million for the three months ended March 31, 2015.
Occupancy and equipment expenses were at $2.1 million for the three months ended March 31, 2016 versus $2.2 million for the three months ended December 31, 2015. Occupancy and equipment expenses were also $2.1 million for the three months March 31, 2015.
Data processing expense increased slightly from $431,000 for the fourth quarter of 2015 to $452,000 for the quarter ended March 31, 2016. Professional fees for the three months ended March 31, 2016 were $604,000. This compared to professional fees of $773,000 for the three months ended December 31, 2015 and $965,000 for the three months ended March 31, 2015. Approximately 20% of professional fees in the first quarter of 2016 were for attorney fees related to forward-looking projects the bank has been and is exploring. Additionally, during the first quarter of 2015, Stonegate incurred approximately $434,000 in legal and other professional fees for merger-related expenses.
The table below outlines the expenses for the quarters ended:
March 31, 2016 December 31, 2015 March 31, 2015
-------------- ----------------- --------------
(in thousands of dollars)
Salaries and employee
benefits $ 7,097 $ 6,695 $ 7,015
Occupancy and equipment
expense 2,113 2,184 2,131
FDIC insurance and state
assessments 383 382 380
Data processing 452 431 826
Loan and other real estate
expense 154 95 53
Professional fees 604 773 965
Core deposit intangible
amortization 414 449 456
Other operating expenses 1,319 1,331 1,639
-------------- ----------------- --------------
Totals $ 12,536 $ 12,340 $ 13,465
============== ================= ==============
On an on-going basis management reviews our noninterest expenses for potential efficiencies. As part of the most recent review, the decision was made, subject to regulatory approval, to merge the Hallandale Beach office into the Hollywood Beach office. It is anticipated the closing of the Hallandale Beach office will take place during the third quarter of 2016 with projected annual savings of approximately $500,000 from the date of closing. We remain committed to providing the highest level of customer service to all our customers and, as we begin this consolidation, we will strive to work with each customer to determine how best to continue to service individual financial needs.
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 21 banking offices in its target marketplaces of South and West Florida, which are 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 fourth quarter of 2015. This telephone conference call will be held on Wednesday, April 27, 2016, beginning at 2:30 p.m. Eastern Time. The call-in toll-free telephone number is 1-866-820-3585. The Conference ID# is 92097530. Participants will be asked for their First Name, Last Name and Company Name. An audio replay of the conference call will be available until May 11, 2016, and may be accessed telephonically at 1-855-859-2056 using Conference ID# 92097530.
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.
Participants in the Solicitation
This communication is not a solicitation of a proxy from any security holder of Stonegate Bank or Regent Bancorp, Inc. ("Regent"). However, Stonegate Bank, Regent, their respective directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies from Stonegate Bank's and Regent's shareholders in respect of the anticipated merger. Information regarding the directors and executive officers of Stonegate Bank may be found in its Proxy Statement on Schedule 14A, which was filed with the FDIC on March 18, 2016, and can be obtained free of charge from Stonegate Bank's website or from the FDIC's website (http://www2.fdic.gov/efr). Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and other relevant materials to be filed with the FDIC when they become available. Investors should read the joint proxy statement/prospectus carefully, when it becomes available, before making any voting decision because it will contain important information.
Additional Information and Where to Find It
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed merger, Stonegate intends to file a joint proxy statement of Stonegate and Regent and a prospectus of Stonegate with the FDIC. Stonegate may file other documents with the FDIC regarding the proposed transaction. A definitive joint proxy statement will be mailed to the shareholders of Stonegate and Regent. INVESTORS AND SECURITY HOLDERS ARE ADVISED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE, AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE FDIC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders may obtain a free copy of the joint proxy statement/prospectus and other documents containing information about Stonegate at the FDIC's website at www2.fdic.gov/efr. These documents may be accessed and downloaded for free at Stonegate's website at www.stonegatebank.com or by directing a request to Sharon Jones, Senior Vice President and Chief Financial Officer, Stonegate Bank at 400 N. Federal Hwy., Pompano Beach, Florida 33462, telephone (954) 315-5500.
Stonegate Bank and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands of dollars, except per share data)
March 31, December 31,
2016 2015
------------ ------------
Assets
Cash and due from banks $ 298,803 $ 257,934
Federal funds sold 30,000 30,000
Securities held to maturity (Fair value of
$112,099 at March 31, 2016 and $107,659 at
December 31, 2015) 110,067 106,619
Other investments 3,049 2,895
Loans, net of allowance for loan losses of
$18,494 at March 31, 2016 and $18,149 at
December 31, 2015 1,867,653 1,839,421
Premises and equipment, net 25,350 25,769
Bank-owned life insurance 29,485 29,776
Other real estate owned 561 1,390
Other assets 89,747 86,634
------------ ------------
Total assets $ 2,454,715 $ 2,380,438
============ ============
Liabilities and Stockholders' Equity
Liabilities
Total deposits $ 2,089,600 $ 2,024,367
Other borrowings 58,663 58,638
Other liabilities 16,932 14,869
------------ ------------
Total liabilities 2,165,195 2,097,874
------------ ------------
Stockholders' Equity
Senior non-cumulative preferred stock; no
shares issued and outstanding as of March 31,
2016 and December 31, 2015 - -
Common stock, $5 par value, 20,000,000 shares
authorized; 12,796,552 issued and 12,793,894
shares outstanding as of March 31, 2016 and
12,752,402 shares issued and 12,749,744
outstanding as of December 31, 2015 63,983 63,762
Additional paid-in capital 147,938 146,994
Retained earnings 78,878 73,205
Treasury Stock (13) (13)
Accumulated other comprehensive income (loss) (1,266) (1,384)
------------ ------------
Total stockholders' equity 289,520 282,564
------------ ------------
Total liabilities and stockholders' equity $ 2,454,715 $ 2,380,438
============ ============
Stonegate Bank and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)
(in thousands of dollars, except per share data)
For the three months ended
--------------------------------------
March 31, December 31, March 31,
2016 2015 2015
Interest income:
Interest and fees on loans $ 22,280 $ 23,079 $ 21,447
Interest on securities 449 446 434
Interest on federal funds sold and
at other banks 275 148 139
Other interest 34 33 36
------------ ------------ ------------
Total interest income 23,038 23,706 22,056
------------ ------------ ------------
Interest expense:
Interest on deposits 2,184 2,041 1,863
Other interest 217 223 257
------------ ------------ ------------
Total interest expense 2,401 2,264 2,120
------------ ------------ ------------
Net interest income 20,637 21,442 19,936
Provision for loan losses 193 300 -
------------ ------------ ------------
Net interest income after
provision for loan losses 20,444 21,142 19,936
------------ ------------ ------------
Noninterest income:
Service charges and fees on deposit
accounts 707 772 630
Other noninterest income 1,577 1,740 839
------------ ------------ ------------
Total noninterest income 2,284 2,512 1,469
------------ ------------ ------------
Noninterest expense:
Salaries and employee benefits 7,097 6,695 7,015
Occupancy and equipment expenses 2,113 2,184 2,131
Data processing 452 431 826
Professional fees 604 773 965
Core deposit intangible amortization 414 449 456
Other operating expenses 1,856 1,808 2,072
------------ ------------ ------------
Total noninterest expense 12,536 12,340 13,465
------------ ------------ ------------
Income before income taxes 10,192 11,314 7,940
Income tax 3,496 4,050 2,920
------------ ------------ ------------
Net income 6,696 7,264 5,020
Preferred stock dividend - - 32
------------ ------------ ------------
Net income applicable to common
stock $ 6,696 $ 7,264 $ 4,988
============ ============ ============
Earnings per common share:
Basic $ 0.52 $ 0.57 $ 0.40
Diluted 0.51 0.56 0.39
Common shares used in the calculation
of earnings per share:
Basic 12,775,344 12,704,558 12,418,145
Diluted 13,088,602 13,037,123 12,739,182
Stonegate Bank and Subsidiaries
CONDENSED FINANCIAL HIGHLIGHTS
(in thousands of dollars)
As of
----------------------------------------
March 31, December 31, March 31,
2016 2015 2015
------------ ------------ ------------
BALANCE SHEET ITEMS:
Assets $ 2,454,715 $ 2,380,438 $ 2,256,110
Loans, net 1,867,653 1,839,422 1,716,482
Deposits 2,089,600 2,024,367 1,903,594
Stockholders' equity 289,520 282,564 273,949
CAPITAL RATIOS:
Total capital to risk weighted
assets 12.2% 11.9% 12.3%
Tier 1 capital to risk weighted
assets 11.3 11.0 11.5
Common Equity Tier 1 to risk
weighted assets 11.3 11.0 10.8
Tier 1 capital to average assets 10.2 10.0 10.6
QUARTERLY AVERAGE
BALANCE SHEET ITEMS:
Assets $ 2,393,187 $ 2,375,948 $ 2,179,334
Interest earning assets 2,165,843 2,128,845 1,968,752
Loans, net 1,851,841 1,825,012 1,677,378
Interest bearing liabilities 1,699,463 1,674,333 1,555,742
Deposits 2,032,157 2,015,859 1,836,843
Stockholders' equity 287,235 279,466 266,608
Stonegate Bank and Subsidiaries
CONDENSED FINANCIAL HIGHLIGHTS
(in thousands of dollars, except per share data)
Three Months Ended
--------------------------------------
March 31, December 31, March 31,
2015 2015 2015
------------ ------------ ------------
FINANCIAL DATA:
Net interest income $ 20,637 $ 21,442 $ 19,936
Net interest income - tax equivalent 21,086 21,775 20,164
Noninterest income 2,284 2,512 1,469
Noninterest expense 12,536 12,340 13,465
Income tax 3,496 4,050 2,920
Net income 6,696 7,264 5,020
Preferred stock dividend - - 32
Net income attributed to common shares 6,696 7,294 4,988
Weighted average number of common
shares outstanding:
Basic 12,775,344 12,704,558 12,418,145
Diluted 13,088,602 13,037,123 12,739,182
Per common share data:
Basic $ 0.52 $ 0.57 $ 0.40
Diluted 0.51 0.56 0.39
Cash dividend declared to common
shares 1,024 1,020 506
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with GAAP. Stonegate's management uses these non-GAAP financial measures in their analysis of Stonegate'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 Stonegate'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 Stonegate's core business. 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 in this press release are set forth below.
Reconciliation of GAAP to non-GAAP Measures
(in thousands of dollars, except per share data)
March 31, 2016
------------------
Interest income, as reported (GAAP) $ 23,038
Tax equivalents adjustments 449
------------------
Interest income (tax equivalent) $ 23,487
==================
Net interest income, as reported (GAAP) $ 20,637
Tax equivalent adjustments 449
------------------
Net interest income (tax equivalent) $ 21,086
==================
Net income (GAAP) $ 6,696
Non-interest expense adjustments:
Merger and acquisition related expenses -
Branch closure expenses -
Professional expenses 114
------------------
Tax effect using the effective tax rate for the period
presented 39
------------------
Net operating income $ 6,771
==================
Net operating income per common share $ 0.53
==================
INVESTOR RELATIONS:
Dave Seleski
Email Contact
Stonegate Bank
(954) 315-5510
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