Welcome!

News Feed Item

Stonegate Bank Reports Net Income of $2.5 Million for Fourth Quarter 2013

FORT LAUDERDALE, FL -- (Marketwired) -- 01/17/14 -- Stonegate Bank (OTCBB: SGBK)

Fourth Quarter 2013 Highlights:

  • $1.1 billion in total assets at December 31, 2013
  • Net income of $2,540,000 for the fourth quarter of 2013
  • Net income of $9,317,000 for fiscal year 2013
  • 32 consecutive quarters of profitability
  • 2013 fourth quarter average net interest margin of 3.74%
  • Tier 1 risk based capital ratio of 15.3% at December 31, 2013
  • Closed Florida Shores acquisition on January 15, 2014 creating a $1.7 billion bank
  • Total loan growth of 11.0% in 2013

Stonegate Bank (OTCBB: SGBK) reported net income of $2,540,000, or 30.8 cents per share in the fourth quarter of 2013, as compared to net income of $2,164,000 or 26.2 cents per share in the fourth quarter of 2012. The Bank increased earnings year over year even though merger related expenses in 2013 were approximately $900,000. The Bank earned $9,317,000 in 2013 or $1.13 per share, as compared to $9,082,000 or $1.10 per share in 2012.

Income and Expenses:
Total interest income decreased from $12.2 million in the fourth quarter of 2012 to $11.0 million in the fourth quarter of 2013. Total interest expense decreased from $1.8 million in the fourth quarter of 2012 compared to $1.5 million in the fourth quarter of 2013. This occurred even though total deposits increased $189 million during 2013. Further, the Bank's cost of funds decreased 30 basis points since December 2012. Net interest income decreased from $10.3 million in the fourth quarter of 2012 to $9.5 million in the fourth quarter of 2013.

Total non-interest income increased to $2,146,000 in the fourth quarter of 2013 from $697,000 in the fourth quarter of 2012. Total non-interest income improved from $3,625,000 in 2012 to $4,532,000, or 25%, in 2013. The largest components of this improvement were increased service charges and overdraft fees, recovery on the sale of REO, and other loan related fees.

Non-interest expense increased to $6.5 million for the fourth quarter of 2013 from $5.8 million for the fourth quarter of 2012. But for merger related expenses in the fourth quarter of 2013, non-interest expenses would have remained unchanged.

Margin and Cost of Funds:
Total cost of funds declined from a 0.68% September 2013 month-to-date average to a 0.61% December 2013 month-to-date average. Stonegate Bank's net interest margin declined from a fourth quarter 2012 average of 4.76% to 3.74% fourth quarter 2013 average. The increase in cash of nearly $142 million and a decrease of $41 million in the investment portfolio largely accounted for the decrease in the net interest margin as well as timing differences on the realization of accretable discounts.

Balance Sheet and Capital:
Total assets grew organically from $944 million on December 31, 2012 to $1.119 billion on December 31, 2013, a $175 million increase. Total loans increased $80 million from $732 million on December 31, 2012 to $812 million on December 31, 2013. Total deposits increased $189 million from $746 million on December 31, 2012 to $935 million on December 31, 2013. Non-interest bearing deposits represented 19.4% of total deposits. Total capital grew from $126.7 million on December 31, 2012 to $131.4 million on December 31, 2013. The undiluted book value of common shares of Stonegate Bank was $15.95 per share on December 31, 2013.

Asset Quality:

Total Stonegate Bank

----------------------------------------------------------------------------
(dollars in thousands)             September 30, 2013    December 31, 2013
                                 -------------------------------------------
Total loans                      $             780,207 $             812,009
30 days past due                                   578                   202
60 - 89 days                                       757                     0
NPAs*                                            8,423                 6,627
REO                                              2,962                 2,120

----------------------------------------------------------------------------

* 34% of the nonaccrual loans are currently making payments.

The chart above shows the various categories and ending balances of past due loans, nonaccrual loans and real estate owned. Overall, non-performing loans represent 0.81% of total loans and 0.59% of total assets.

Management believes all non-performing assets and REO are written down or reserved to fair market value. Real estate owned declined from $2.9 million on September 30, 2013 to $2.1 million on December 31, 2013. The Bank's loan loss reserve was $17.3 million on December 31, 2013. This reserve represents 261% of all non-performing loans and 2.13% of total loans. Total loans past due more than 30 days decreased from $1,335,000 on September 30, 2013 to $202,000 on December 31, 2013.

Management Comments:

"First, I would like to welcome all the customers and investors of Florida Shores Southeast and Southwest to Stonegate Bank. The closing of the Florida Shores merger earlier this week creates some exciting opportunities for the combined bank as we move forward together in 2014," said Dave Seleski, President and Chief Executive Officer. "As for Stonegate, we ended the year with our strongest quarter. After a very slow start, including negative loan growth in the first quarter, we were able to achieve all of our goals in 2013 which included 11% loan growth, an improvement in percentage of non-interest bearing deposits to total deposits, higher earnings, and improved credit quality. Some of this is a reflection of the continued improvement in the Florida economy but most of the credit goes to the employees that really stepped up to the plate. Even more remarkable is that this was achieved with the distraction and the cost of the merger with Florida Shores which could have tempered our overall performance."

"The two biggest challenges and opportunities for Stonegate in 2014 are the data processing conversion of Florida Shores on April 25th and our pending NASDAQ listing. These are exciting times at Stonegate and I look forward to continuing to build our franchise in 2014," added 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, 2013
                               (In Thousands)
Assets
-----------------------------------------------------
Cash and due from banks                               $             190,226
Federal funds sold                                                   10,000
Investment securities                                                71,639

Commercial loans                                                    128,654
Commercial real estate loans - owner occupied                       179,643
Commercial real estate loans - other                                265,223
Construction loans                                                   64,805
Residential 1 - 4 family loans                                      122,351
HELOCs                                                               40,691
Consumer and other loans                                             10,642
                                                      ---------------------
  Gross loans                                                       812,009
Allowance for loan losses                                           (17,307)
                                                      ---------------------
  Net loans                                                         794,702

Fixed assets                                                         12,310
Other assets                                                         40,856
                                                      ---------------------
  Total assets                                        $           1,119,733
                                                      =====================

Liabilities
-----------------------------------------------------
Non-interest bearing deposits                         $             181,281
NOW accounts                                                        127,124
Money market accounts                                               392,108
Core reciprocal deposits                                            146,206
Savings accounts                                                      6,543
Certificates of deposit                                              82,215
                                                      ---------------------
  Total deposits                                                    935,477
Repurchase Agreements                                                22,733
FHLB and other borrowings                                            20,000
Other Liabilities                                                    10,061
                                                      ---------------------
  Total liabilities                                                 988,271

Total capital                                                       131,462
                                                      ---------------------
  Total liabilities and capital                       $           1,119,733
                                                      =====================




                               STONEGATE BANK
                              Income Statement
                     For Period Ended December 31, 2013
(In Thousands)
Interest income                                        $              42,692
Interest expense                                                       6,672
                                                       ---------------------
  Net interest income                                                 36,020
Less: Provision for loan losses                                        2,444
                                                       ---------------------
  Net interest income after provision for loan losses                 33,576
Non-interest income                                                    4,532
Realized gains (losses) on AFS securities                                902

Less: Salaries and benefits expense                                   13,909
    Occupancy and equipment expense                                    3,646
    Data processing expense                                              553
    Legal and professional expenses                                    2,777
    Loan and OREO expenses                                               346
    Other expense                                                      3,172
                                                       ---------------------
  Total non-interest income                                           24,403

Net income before income taxes                                        14,607
Income taxes                                                           5,290
                                                       ---------------------
  Net income                                           $               9,317
                                                       =====================


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
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
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.
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Apache Hadoop is a key technology for gaining business insights from your Big Data, but the penetration into enterprises is shockingly low. In fact, Apache Hadoop and Big Data proponents recognize that this technology has not yet achieved its game-changing business potential. In his session at 19th Cloud Expo, John Mertic, director of program management for ODPi at The Linux Foundation, will explain why this is, how we can work together as an open data community to increase adoption, and the i...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Tintri VM-aware storage is the simplest for virtualized applications and cloud. Organizations including GE, Toyota, United Healthcare, NASA and 6 of the Fortune 15 have said “No to LUNs.” With Tintri they mana...
24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to connect your brand strategy with the right consumer. 24Notion ranked #12 on Corporate Social Responsibility - Book of List.
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.