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$772,000 net income, or $0.13 per Share, in 2Q15 From 1Q15
State Bank Corp. (OTCQB:SBAZ), the holding company for Mohave State Bank, today announced net income increased 13.4% to $772,000, or $0.13 per diluted share, for the second quarter ended June 30, 2015, compared to $681,000, or $0.12 per diluted share, in the first quarter of 2015.
Net income was $3,798,000, or $0.65 per diluted share, for the second quarter of 2014, which included a $3.24 million tax benefit as a result of the reversal of its deferred tax asset valuation allowance. Second quarter 2015 pretax income increased 112.4% to $1.19 million, compared to $558,000 in the second quarter a year ago.
For the six months ended June 30, 2015, net income totaled $1.45 million, or $0.25 per diluted share, compared to $4.27 million, or $0.73 per diluted share, for the same period of 2014. Pretax income increased 115.9% to $2.22 million in the first six months of 2014 compared to $1.03 million in the first six months of 2014.
“During the second quarter we generated excellent operating results. We are successfully growing our franchise, expanding the balance sheet and improving the bottom line,” stated Brian M. Riley, President and Chief Executive Officer. “As the regional economic recovery continues to build, we are seeing increasing demand for loans from customers throughout our markets. We believe that our franchise is starting to generate forward momentum and we are encouraged by the outlook for our business in the next few years.”
Second Quarter 2015 Financial Highlights:
– Pre-tax income increased 112.4% to $1.19 million in the second quarter, compared to $558,000 in the second quarter 2014. After tax comparisons were affected by a one-time income tax benefit that was recorded in the prior year.
– The net interest margin remained healthy at 4.22%.
– The mortgage department originated 93 loans totaling $18.1 million, resulting in quarterly operating profit of $240,000.
– Loans held for investment increased 9.76% to $235.9 million during the second quarter compared to three months earlier.
– Non-performing assets decreased by $3.6 million to $10.4 million at June 30, 2015 on the sale of three properties and continued resolution of problem credits.
– Tangible book value per share increased 5.9% to $6.13 per share, compared to $5.79 a year ago.
“Our solid second quarter net interest margin was a result of our improved earning asset mix, modestly higher yields on cash and securities and reduced cost of deposits, which generally offset the continuing downward pressure on loan yields,” added Riley. Net interest margin was 4.22% in the second quarter 2015 compared to 4.09% in the preceding quarter and 4.18% in the second quarter a year ago.
The provision for loan losses totaled $350,000 in the second quarter against net credit losses of $415,000. The allowance for loan losses totaled $3.0 million at June 30, 2015, or 1.26% of loans held for investment. The increase in net credit losses resulted from a charge-off of a credit relationship that was previously provided for in the Bank’s impairment process.
Total assets were $339.1 million at June 30, 2015, an increase of $21.9 million, or 6.9% from $317.2 million at December 31, 2014 and an increase of $37.2 million, or 12.3%, compared to $301.9 million a year ago. Total loans held for investment were $235.9 million as compared to $209.0 million at December 31, 2014 and $202.1 million at June 30, 2014. Total deposits were $297.9 million, an increase of $20.4 million, or 7.4%, from $277.5 million at December 31, 2014 and an increase of $35.6 million, or 13.6%, compared to $262.3 million a year ago. Core deposits, defined as noninterest bearing demand, money market, NOW and savings accounts, increased 3.6% compared to three months earlier and increased 16.3% compared to a year earlier to $234.1 million at June 30, 2015. Core deposits now comprise 78.6% of total deposits.
Nonperforming assets were $10.4 million at June 30, 2015, a 29.7% decrease compared to $14.8 million at December 31, 2014 and a 41.6% decrease compared to $17.8 million at June 30, 2014. Nonperforming assets represented 3.08% of total assets at June 30, 2015, down from 4.67% at December 31, 2014 and 5.91% a year ago.
Shareholder equity increased to $36.0 million at June 30, 2015, from $35.1 million at December 31, 2014 and $34.0 million a year earlier. At June 30, 2015 tangible book value per share improved to $6.13 per share compared to $5.99 per share at December 31, 2014 and $5.79 a year earlier.
