Click here to close now.


News Feed Item

Stonegate Bank Reports Net Income of $2.1 Million for Fourth Quarter 2012

FORT LAUDERDALE, FL -- (Marketwire) -- 01/28/13 -- Stonegate Bank (OTCBB: SGBK)

Fourth Quarter 2012 Highlights:

  • Net income of $2,164,000 for the fourth quarter of 2012
  • Total assets grew to $945 million from $855 million year over year
  • 28 straight quarters of profitability
  • 4.76% fourth quarter net interest margin
  • Tier 1 risk based capital ratio of 16% at December 31, 2012
  • Total organic loan growth of 22% in 2012
  • 0.99% return on assets in 2012

Stonegate Bank (OTCBB: SGBK) reported net income of $2,164,000 or 26.2 cents per share for the fourth quarter of 2012, as compared to net income of $2,800,000 or 34 cents per share in the fourth quarter of 2011. The Bank earned $9,082,000 or $1.10 per share in 2012, as compared to $11,544,000 or $1.40 per share in 2011.

Income and Expenses:
Total interest income increased from $10.5 million in the fourth quarter of 2011 to $12.2 million in the fourth quarter of 2012. This was the result of an increase in $132 million in total loans period to period. Total interest expense declined from $1.94 million in the fourth quarter of 2011 to $1.87 million in the fourth quarter of 2012. This occurred even though total deposits increased $72 million period to period. Net interest income improved from $8.6 million in the fourth quarter of 2011 to $10.3 million in the fourth quarter of 2012.

Excluding bargain purchase gains in 2011, total non-interest income decreased to $697,000 in the fourth quarter of 2012 from $835,000 in the fourth quarter of 2011. Year to date non-interest income increased from $2,680,000 in 2011 to $3,625,000 in 2012, excluding 2011 bargain purchase gains. The Bank realized security gains of $234,000 in the fourth quarter of 2012. Per plan, these gains were taken largely to reduce the overall size of the investment portfolio and to shorten the duration of the overall portfolio.

Non-interest expense decreased from $6.4 million for the fourth quarter of 2011 to $5.8 million for the fourth quarter of 2012. Total year to date non-interest expense decreased from $23.6 million in 2011 to $23.1 million in 2012.

Margin and Cost of Funds:
Total cost of funds, as compared to the September month-to date average, remained flat at a .92% December month-to-date average. Stonegate Bank's net interest margin increased from a third quarter 2012 average of 4.25% to a fourth quarter average of 4.76%. The increase was primarily the result of the Bank's realization of various fair market value discounts on acquired assets.

Balance Sheet and Capital:
Total assets grew from $855 million on December 31, 2011 to $945 million on December 31, 2012, a $90 million increase. Total loans increased $132 million from $600 million on December 31, 2011 to $732 million on December 31, 2012. Total deposits increased $72 million from $674 million on December 31, 2011 to $746 million on December 31, 2012. Non-interest bearing deposits represent 16.9% of total deposits. Total capital grew from $118 million on December 31, 2011 to $127 million on December 31, 2012. The undiluted book value of common shares of Stonegate Bank was $15.37 per share on December 31, 2012.

Asset Quality:

Total Stonegate Bank

                                                                  Legacy Dec
In thousands       Mar 2012    Jun 2012   Sept 2012    Dec 2012      2012
                 ----------- ----------- ----------- -----------
Total loans      $   633,659 $   676,480 $   691,590 $   732,898 $   589,000
30 days past due       1,304         979       1,811       2,115           0
60 - 89 days               0         890         304       1,131           0
NPAs                   9,850       6,746       6,128       6,198         402
REO                    5,400       6,402       6,942       3,257          15

In order to better illustrate trends in asset quality the chart above shows the various categories and ending balances over the last four quarters, along with a comparison to the legacy portfolio at year end. This is presented to provide additional clarity on the portfolio trends as well as the Bank's progress in reducing non-performing loans and REO.

The Bank's non-performing loans remained relatively level from $6.1 million on September 30, 2012 to $6.2 million on December 31, 2012. Overall, non-performing loans represent 0.85% of total loans and 0.65% of total assets. Total non-performing legacy loans (originated by Stonegate Bank and not through acquisition) were $402,000 at December 31, 2012.

Real estate owned decreased significantly from $6.9 million on September, 30 2012 to $3.2 million on December 31, 2012. Total legacy REO was $15,000 at December 31, 2012.

The Bank's loan loss reserve was $17 million on December 31, 2012. This reserve represents 364% of all non-performing loans and 2.32% of total loans. Total loans past due more than 30 days increased from $2.1 million on September 30, 2012 to $3.2 million on December 31, 2012. At December 31, 2012, there were no past due loans in the legacy portfolio.

Management Comments:
"As I look back at 2012, several trends at Stonegate and the Florida economy are evident," said Dave Seleski, President and Chief Executive Officer. "Real estate, particularly residential, continues to improve in all the markets we serve. We have seen significant appreciation in home prices as evidenced by the median price of homes increasing year over year in all of our markets. In addition, most of our markets had reduced commercial vacancies and rental rates appear to be increasing as well. This is very encouraging.

"I think the public views the State of Florida as an excellent place to invest and expand their businesses. All of this certainly contributed to our 22% loan growth in 2012. We ramped up our loan production by adding additional lenders and without sacrificing our credit quality. In the asset quality section above I have added, for comparative purposes, a column showing only loans originated by Stonegate. This shows we have virtually no problems in our legacy portfolio. Our credit culture is and will always continue to be the foundation of our Bank.

"Our goal in 2013 is to continue to grow organically without sacrificing margin and credit quality. In addition, the bank will continue to evaluate potential mergers or strategic alliances that will enhance shareholder value," said Seleski.

The Bank cautions that certain statements contained in this press release are "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995, which statements are made pursuant to the "safe harbor" provisions of such Act. These forward-looking statements describe future plans or strategies and may include the Bank's expectations of future financial results. The words "believe," "expect," "anticipate," "estimate," "project," and similar expressions identify forward-looking statements. The Bank's ability to predict results or the effect of future plans or strategies or qualitative or quantitative changes is inherently uncertain. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, changes in general market interest rates, changes in general economic conditions and those specific to the Bank's market area, legislative/regulatory changes, monetary and fiscal policies of the U.S. Treasury and the Federal Reserve, changes in the quality or composition of the Bank's loan portfolios, demand for loan products, changes in deposit flows, real estate values, and competition and other economic, competitive, governmental, regulatory and technological factors affecting the Bank's operations, pricing, products and services. The Bank makes periodic filings to the Federal Deposit Insurance Corporation which contain various Bank financial information, copies of which are available from the Bank without charge. The Bank disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any forward-looking statements contained in this release to reflect future events or developments.

                         STONEGATE BANK
                          Balance Sheet
                     As of December 31, 2012
(In Thousands)

Cash and Due From Banks                                         $    57,930
Federal Funds Sold                                                        -
Investment Securities                                               112,625

Commercial Loans                                                     99,764
Commercial Real Estate Loans - Owner Occupied                       185,167
Commercial Real Estate Loans - Other                                238,360
Construction Loans                                                   46,185
Residential 1-4 Family Loans                                        118,040
HELOCs                                                               32,923
Consumer Loans                                                       12,459
Gross Loans                                                         732,898
Allowance for Loan Losses                                           (17,016)
Net Loans                                                           715,882
Fixed Assets                                                         13,075
Other Assets                                                         45,265
Total Assets                                                    $   944,777

Non-Interest Bearing Deposits                                   $   126,551
NOW Accounts                                                         72,533
Money Market Accounts                                               327,850
Core Reciprocal Deposits                                            124,622
Savings Accounts                                                      7,170
Certificates of Deposits                                             87,442
Total Deposits                                                      746,168
Repurchase Agreements                                                34,660
FHLB and Other Borrowings                                            20,060
Other Liabilities                                                    17,180
Total Liabilities                                                   818,068

Total Capital                                                       126,709
Total Liabilities and Capital                                   $   944,777

                         STONEGATE BANK
                        Income Statement
               For Period Ended December 31, 2012

(In Thousands)

Interest Income                                                $      42,915
Interest Expense                                                       7,447
Net Interest Income                                                   35,468
Less: Provision for Loan Losses                                        4,378
Net Interest Income after Provision for Loan Losses                   31,090
Non-Interest Income                                                    3,626
Realized Gains (Losses) on AFS Securities                              2,975
Less: Salaries and Benefits Expense                                   13,283
  Occupancy and Equipment Expense                                      3,497
  Data Processing Expense                                                787
  Legal and Professional Expense                                       1,455
  FDIC Assessments                                                       580
  Loan and OREO Expenses                                                 991
  Other Expense                                                        2,550
Total Non-Interest Expense                                            23,143
Net Income Before Income Taxes                                        14,548
Income Taxes                                                           5,466
Net Income                                                     $       9,082

Sissy DeMaria
Email Contact
Suzanne Schmidt
Email Contact
Kreps DeMaria
(305) 663-3543

Dave Seleski
Email Contact
Stonegate Bank
(954) 315-5510

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company In the past, he was co-founder of social-trading platform Currensee, which...
The revocation of Safe Harbor has radically affected data sovereignty strategy in the cloud. In his session at 17th Cloud Expo, Jeff Miller, Product Management at Cavirin Systems, discussed how to assess these changes across your own cloud strategy, and how you can mitigate risks previously covered under the agreement.
Countless business models have spawned from the IaaS industry – resell Web hosting, blogs, public cloud, and on and on. With the overwhelming amount of tools available to us, it's sometimes easy to overlook that many of them are just new skins of resources we've had for a long time. In his general session at 17th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, an IBM Company, broke down what we have to work with, discussed the benefits and pitfalls and how we can best use them ...
Most of the IoT Gateway scenarios involve collecting data from machines/processing and pushing data upstream to cloud for further analytics. The gateway hardware varies from Raspberry Pi to Industrial PCs. The document states the process of allowing deploying polyglot data pipelining software with the clear notion of supporting immutability. In his session at @ThingsExpo, Shashank Jain, a development architect for SAP Labs, discussed the objective, which is to automate the IoT deployment proces...
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and t...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...