|By Marketwired .||
|January 17, 2014 04:28 PM EST||
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.
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.
"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 =====================
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.
Nov. 30, 2015 03:56 PM EST
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 ...
Nov. 30, 2015 03:45 PM EST
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...
Nov. 30, 2015 03:30 PM EST
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.
Nov. 30, 2015 03:15 PM EST Reads: 242
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...
Nov. 30, 2015 03:00 PM EST Reads: 492
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.
Nov. 30, 2015 02:00 PM EST Reads: 366
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...
Nov. 30, 2015 01:45 PM EST Reads: 430
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...
Nov. 30, 2015 01:45 PM EST Reads: 434
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).
Nov. 30, 2015 01:00 PM EST Reads: 537
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).
Nov. 30, 2015 12:45 PM EST Reads: 342
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...
Nov. 30, 2015 12:45 PM EST Reads: 288
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.
Nov. 30, 2015 11:00 AM EST Reads: 218
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...
Nov. 30, 2015 10:45 AM EST Reads: 462
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...
Nov. 30, 2015 10:30 AM EST Reads: 354
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
Nov. 30, 2015 10:00 AM EST Reads: 291