Welcome!

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)

Assets
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
                                                                ===========

Liabilities
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
                                                               =============

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

INVESTOR RELATIONS:
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
With more than 30 Kubernetes solutions in the marketplace, it's tempting to think Kubernetes and the vendor ecosystem has solved the problem of operationalizing containers at scale or of automatically managing the elasticity of the underlying infrastructure that these solutions need to be truly scalable. Far from it. There are at least six major pain points that companies experience when they try to deploy and run Kubernetes in their complex environments. In this presentation, the speaker will d...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.
CI/CD is conceptually straightforward, yet often technically intricate to implement since it requires time and opportunities to develop intimate understanding on not only DevOps processes and operations, but likely product integrations with multiple platforms. This session intends to bridge the gap by offering an intense learning experience while witnessing the processes and operations to build from zero to a simple, yet functional CI/CD pipeline integrated with Jenkins, Github, Docker and Azure...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Dhiraj Sehgal works in Delphix's product and solution organization. His focus has been DevOps, DataOps, private cloud and datacenters customers, technologies and products. He has wealth of experience in cloud focused and virtualized technologies ranging from compute, networking to storage. He has spoken at Cloud Expo for last 3 years now in New York and Santa Clara.
Enterprises are striving to become digital businesses for differentiated innovation and customer-centricity. Traditionally, they focused on digitizing processes and paper workflow. To be a disruptor and compete against new players, they need to gain insight into business data and innovate at scale. Cloud and cognitive technologies can help them leverage hidden data in SAP/ERP systems to fuel their businesses to accelerate digital transformation success.
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.