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State Bank Corp. (OTCBB:SBAZ) (“Company”), the holding company for Mohave State Bank, has announced net income of $470,000, or $0.08 per diluted share, for the quarter ended March 31, 2014, as compared to net income of $327,000, or $0.06 per diluted share, for the same period of 2013.
First Quarter 2014 Highlights include:
– The Bank was officially released from its regulatory Consent Order.
– Net income increased 44 percent in the first quarter of 2014 from the same period of 2013.
– Non-performing assets decreased by another 2.6 million to $20.8 million, lowering the Bank’s classified asset ratio to 74% at March 31, 2014 from 89% at December 31, 2013.
– Core Deposits increased by $6.8 million.
“Our financial performance has become more stable and consistent as credit conditions have improved,” commented Brian M. Riley, President & CEO. “We finally reached the required metrics in 2013 that allowed banking regulators to formally release us from our stipulated Consent Order. That action is the culmination of four years of diligent and persistent work by the professionals of Mohave State Bank.”
The Company provided $120,000 to its loan loss reserve during the first quarter of 2014. Net credit losses during the first quarter of 2014 were $45,000 as compared to $368,000 for the same period of 2013.
Nonperforming assets were $20.8 million at March 31, 2014, a decrease of $2.6 million from $23.4 million at December 31, 2013. Nonperforming assets represented 7.14 percent of total assets at March 31, 2014 as compared to 8.15 percent at December 31, 2013. The allowance for loan and lease losses totaled $3.7 million, or 1.90 percent of total loans, at March 31, 2014. The Company continues to carefully monitor its level of loss reserves and will proactively make additions as necessary to protect against an uncertain economic environment.
Despite a persistent low interest rate environment, the Company’s net interest margin continues to remain strong with first quarter results of 4.35 percent. The increased quarterly net interest margin was the result of the collection of back interest on one problem credit and the continued decline in the cost of funding.
As of March 31, 2014, total assets were $291.4 million, an increase of $3.5 million from $287.9 million at December 31, 2013. Total loans were $194.0 million at March 31, 2014 as compared to $199.4 million at December 31, 2013. Total deposits were $255.7 million at March 31, 2014 as compared to $252.0 million at December 31, 2013.
Shareholder equity increased to $30.0 million at March 31, 2014 from $29.6 million at December 31, 2013. This was a result of net operating income. The Bank is subject to various regulatory capital requirements administered by the federal banking agencies.
