POMPANO BEACH, FL--(Marketwired - Apr 26, 2016) - Stonegate Bank (
Net operating income is a non-GAAP financial measurement used by management to evaluate and monitor financial results of operations excluding certain non-recurring items such as merger and acquisition related expenses. Information related to our use of non-GAAP financial measures and a table reconciling GAAP to non-GAAP measures used in this press release are presented below under the caption Non-GAAP Financial Measures - Reconciliation of GAAP to non-GAAP Measures.
Key highlights for the first quarter:
- Loans: Total loans, net of discounts and deferred fees, grew $28.6 million during the first quarter of 2016 to $1.89 billion at March 31, 2016, a result of net organic loan growth during the quarter. Commercial real estate ("CRE") comprised 38% of new loan originations for the first quarter of 2016, based upon the outstanding balance as of March 31, 2016. Commercial and industrial ("C&I") accounted for 35% of the new loan originations; 4% of the new originations were construction; residential loans were 9% of new originations with the remaining balance in consumer and other loans. The loan production for the first quarter was comprised of 51% fixed rate loans. Approximately 44% of the variable rate loans originated in the first quarter were tied to LIBOR. On an annualized basis organic loan growth was approximately 6.2%.
- Asset Quality: Total loans past due 30 - 89 days, excluding nonaccrual loans, were $454,000 at March 31, 2016, a decrease of $410,000 from December 31, 2015. Nonaccrual loans were $4.9 million at March 31, 2016, or 0.26% of total loans, a decrease from $6.6 million at December 31, 2015, or 0.36% of total loans. Other real estate owned was $561,000 at March 31, 2016, a decrease of $829,000 from December 31, 2015.
- Net Interest Income and Margin: Net interest income, on a tax equivalent basis, decreased $689,000 for the three months ended March 31, 2016 as compared to the three months ended December 31, 2015. Net interest income totaled $21.1 million for the three months ended March 31, 2016. The net interest margin, on a tax-equivalent basis, declined to 3.92% for the first quarter of 2016 as compared to 4.06% for the fourth quarter of 2015 and a decrease over the net interest margin of 4.15% for the quarter ended March 31, 2015. The decrease from the fourth quarter of 2015 to the first quarter of 2016 in the margin was primarily a result of a decrease in the amount of accretable and nonaccretable discounts that were recognized during the first quarter.
- Noninterest Expense: Noninterest expense increased slightly to $12.5 million for the three months ended March 31, 2016 from $12.3 million for the three months ended December 31, 2015.
- Capital: Stonegate remained well-capitalized as of March 31, 2016 with capital of $289.5 million as compared to $282.6 million at December 31, 2015. As of March 31, 2016, Stonegate's total risk-based capital ratio was 12.2%; Stonegate's Tier 1 and Common Equity Tier 1 capital ratio were each 11.3%; and Stonegate's leverage capital ratio was 10.2%.
Loans and Deposits
Loans outstanding at March 31, 2016 were $1.89 billion as compared to $1.86 billion at December 31, 2015, an increase of $28.6 million during the first quarter of 2016.
The loan portfolio consists primarily of loans to individuals and small- and medium-sized businesses within Stonegate's primary market areas of South and West Florida. The table below shows the loan portfolio composition:
| (in thousands of dollars) | March 31, 2016 | December 31, 2015 | ||||
| Commercial | $ | 222,607 | $ | 216,163 | ||
| Commercial real estate - owner occupied | 501,201 | 499,949 | ||||
| Commercial real estate - other | 553,152 | 534,449 | ||||
| Construction and land development | 188,723 | 201,523 | ||||
| Residential real estate | 332,274 | 333,339 | ||||
| Consumer and other loans | 101,614 | 86,500 | ||||
| Total loans | 1,899,571 | 1,871,923 | ||||
| Less: discount on loans acquired | 10,421 | 11,648 | ||||
| Less: net deferred fees | 3,004 | 2,704 | ||||
| Recorded investment in loans | 1,886,146 | 1,857,571 | ||||
| Less: Allowance for loan losses | 18,494 | 18,149 | ||||
| Net loans | $ | 1,867,652 | $ | 1,839,422 | ||
New loan originations were $148.4 million during the first quarter of 2016, with fundings of $121.9 million. As of March 31, 2016, outstanding commitments were approximately $364.7 million with approximately $89.9 million representing new approved loan originations and approximately $121.9 million in unfunded construction commitments.
Deposits increased to $2.09 billion at March 31, 2016 from $2.02 billion at December 31, 2015. Noninterest-bearing deposits were $423.9 million at March 31, 2016, an increase from $392.2 million at December 31, 2015, and represented approximately 20.3% of total deposits, an increase from December 31, 2015. Money market accounts increased $58.6 million to $1.11 billion at March 31, 2016, from $1.05 billion at December 31, 2015. Time deposits decreased approximately $19.2 million during the first quarter of 2016 due to runoff of acquired deposits that were priced above the market.
The following table shows the composition of deposits as of March 31, 2016 and December 31, 2015:
| (in thousands of dollars) | March 31, 2016 | December 31, 2015 | ||||
| Noninterest bearing | $ | 423,930 | $ | 392,230 | ||
| NOW | 314,052 | 311,809 | ||||
| Money market | 1,107,028 | 1,048,454 | ||||
| Savings | 94,739 | 102,793 | ||||
| Certificates of deposit | 149,851 | 169,081 | ||||
| Total deposits | $ | 2,089,600 | $ | 2,024,367 | ||
Credit Quality and Allowance for Loan Losses
Loans past due 30-89 days were $454,000 at March 31, 2016, a decrease from $864,000 at December 31, 2015. The decrease in past due loans was partially a result of one loan for $200,000 being transferred to nonaccrual status during the current quarter. All past due loans at March 31 2016, were from the acquired portfolios. Nonaccrual loans stood at $4.9 million at March 31, 2016, a decrease from $6.6 million at December 31, 2015. This decrease was largely due to the payoff of three loans for $1.8 million, including one legacy loan of $1.7 million. Legacy nonaccrual loans were approximately $2.1 million at March 31, 2016 versus $3.6 million as of December 31, 2015. Residential loans classified as nonaccrual were $2.0 million or 40.9% of the nonaccrual loans and commercial real estate loans classified as nonaccrual were $1.8 million or 37.0% of the nonaccrual as of March 31, 2016. As of March 31, 2016, Stonegate did not have any loans past due 90 days or more that were still accruing. At March 31, 2016, there remained approximately $8.1 million in nonaccretable discounts on loans previously acquired. None of the acquired loans are subject to a loss share arrangement with the Federal Deposit Insurance Corporation.
Nonperforming assets (nonaccrual loans and other real estate owned) were $5.5 million as of March 31, 2016, a decrease of $2.5 million from December 31, 2015. Other real estate owned decreased to $561,000 as of March 31, 2016 as compared to $1.4 million as of December 31, 2015. The decrease was the result of the sale of one property during the quarter that was outstanding at December 31, 2015.
The following table outlines nonperforming assets for the periods ended:
| (in thousands of dollars) | March 31, 2016 |
December 31, 2015 |
||||||
| Nonaccrual | $ | 4,922 | $ | 6,634 | ||||
| Other real estate owned | 561 | 1,390 | ||||||
| Total nonperforming assets | $ | 5,483 | $ | 8,024 | ||||
| Nonperforming loans as a percentage of total loans | 0.26 | % | 0.36 | % | ||||
| Nonperforming assets as a percentage of total assets | 0.22 | % | 0.34 | % | ||||
Loans modified as troubled debt restructuring were $9.1 million and $9.8 million at March 31, 2016 and December 31, 2015, respectively. Loans classified as troubled debt restructuring and on nonaccrual status were unchanged from December 31, 2015 at $450,000. There was one loan for $2.0 million which was modified as troubled debt restructuring during the first quarter of 2016. There were payoffs of $2.6 million of loans classified as TDRs during the first quarter of 2016. Specific reserves allocated to loans modified as troubled debt restructuring increased to $160,000 at March 31, 2016, from $106,000 at December 31, 2015.
At March 31, 2016, the allowance for loan losses was $18.5 million, an increase of $345,000 from December 31, 2015. During the first quarter of 2016, recoveries totaled $160,000 and charge-offs were $8,000. Additionally, $193,000 was added to the allowance for loan losses through a provision expense. Specific reserves decreased to $744,000 at March 31, 2016 from $778,000 at December 31, 2015. The allowance for loan losses represented 0.98% of total loans as of both March 31, 2016 and December 31, 2015. Additionally, the allowance represented 1.33% of total legacy loans as of March 31, 2016. Only legacy loans are covered by the allowance as acquired loans are recorded at their fair value on the date of acquisition and none of these loans have experienced significant deterioration above their initial estimate.
The following table shows the activity in the allowance for loan losses for the quarters ended:
| (in thousands of dollars) | March 31, 2016 |
December 31, 2015 |
|||||
| Balance at beginning of period | $ | 18,149 | $ | 18,023 | |||
| Charge-offs | (8 | ) | (300 | ) | |||
| Recoveries | 160 | 126 | |||||
| Provision for loan losses | 193 | 300 | |||||
| Balance at end of period | $ | 18,494 | $ | 18,149 | |||
The table below reflects the allowance allocation per loan category and percent of loans in each category to total loans for the periods indicated:
| (in thousands of dollars) |
March 31, 2016 |
December 31, 2015 |
||||||||
| Amount | % | Amount | % | |||||||
| Commercial | $ | 2,546 | 13.8 | $ | 2,457 | 13.5 | ||||
| Commercial real estate | 12,206 | 66.0 | 11,671 | 64.3 | ||||||
| Construction and land development | 1,612 | 8.7 | 1,702 | 9.4 | ||||||
| Residential real estate | 2,003 | 10.8 | 1,954 | 10.8 | ||||||
| Consumer and other loans | 127 | 0.7 | 365 | 2.0 | ||||||
| Total | $ | 18,494 | 100.0 | $ | 18,149 | 100.0 | ||||
The following is a summary of information pertaining to impaired loans for the three months ended:
| (in thousands of dollars) | March 31, 2016 |
December 31, 2015 |
March 31, 2015 |
|||||
| Impaired loans without a valuation allowance | $ | 6,869 | $ | 9,437 | $ | 7,489 | ||
| Impaired loans with a valuation allowance | 6,489 | 6,571 | 8,034 | |||||
| Total impaired loans | $ | 13,358 | $ | 16,008 | $ | 15,523 | ||
| Valuation allowance related to impaired loans | $ | 744 | $ | 778 | $ | 928 | ||
Net Interest Income and Margin
On a tax-equivalent basis Stonegate's net interest income for the three months ended March 31, 2016 was $21.1 million, a decrease of approximately $689,000 from the fourth quarter of 2015 and an increase of $922,000 from the first quarter 2015. While earning assets grew from the fourth quarter of 2015 to the first quarter of 2016, the decrease in net interest income from the fourth quarter of 2015 was a result of the decrease in accretable discounts and nonaccretable discounts recognized in the first quarter of 2016 as compared to the fourth quarter of 2015. The increase from the first quarter of 2015 was primarily a result of the organic growth. Average loans for the first quarter of 2016 were $1.87 billion as compared to $1.84 billion for the fourth quarter of 2015 and $1.68 billion for the first quarter of 2015.
The net interest margin on a tax-equivalent basis decreased from 4.06% for the fourth quarter of 2015 to 3.92% for the first quarter of 2016. The net interest margin was 4.15% for the first quarter of 2015. The average yield on total earning assets was 4.36% for the first quarter of 2016 versus 4.48% for the fourth quarter of 2015. The average yield on paying liabilities increased 3 basis points from 0.54% from the fourth quarter of 2015 to 0.57% for the first quarter of 2016. Stonegate's cost of funds has increased from 0.45% for the March 2015 month-to-date average to 0.46% for the March 2016 month-to-date average.
The following table recaps yields and costs by various interest-earning asset and interest-bearing liability account types for the current quarter, the previous quarter and the same quarter last year.
Yield and cost table (unaudited)
(in thousands of dollars)
| 1st Quarter 2016 | 4th Quarter 2015 | 1st Quarter 2015 | |||||||||||||||||||||||||
| Average Balance | Interest | Rate | Average Balance | Interest | Rate | Average Balance | Interest | Rate | |||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||
| Loans, Net(1)(2)(4) | $ | 1,870,153 | $ | 22,729 | 4.89 | % | $ | 1,842,950 | $ | 23,412 | 5.04 | % | $ | 1,677,378 | $ | 21,675 | 5.24 | % | |||||||||
| Investment Securities | 108,691 | 449 | 1.66 | 107,636 | 446 | 1.64 | 104,809 | 434 | 1.68 | ||||||||||||||||||
| Federal Funds Sold | 30,000 | 54 | 0.72 | 27,717 | 33 | 0.47 | 20,147 | 15 | 0.30 | ||||||||||||||||||
| Other Investments(3) | 2,912 | 34 | 4.70 | 2,895 | 33 | 4.52 | 2,822 | 36 | 5.17 | ||||||||||||||||||
| Deposits with interest at banks | 154,087 | 221 | 0.58 | 147,647 | 115 | 0.31 | 163,596 | 124 | 0.31 | ||||||||||||||||||
| Total Earning Assets | 2,165,843 | 23,487 | 4.36 | % | 2,128,845 | 24,039 | 4.48 | % | 1,968,752 | 22,284 | 4.59 | % | |||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||||
| Savings, NOW and Money Market | $ | 1,479,261 | $ | 1,969 | 0.54 | % | $ | 1,439,200 | $ | 1,802 | 0.50 | % | $ | 1,265,701 | $ | 1,481 | 0.47 | % | |||||||||
| Time Deposits | 161,401 | 215 | 0.54 | 173,311 | 239 | 0.55 | 231,554 | 382 | 0.67 | ||||||||||||||||||
| Total Interest Bearing Deposits | 1,640,662 | 2,184 | 0.54 | 1,612,511 | 2,041 | 0.50 | 1,497,255 | 1,863 | 0.50 | ||||||||||||||||||
| Other Borrowings | 58,801 | 217 | 1.48 | 63,371 | 223 | 1.40 | 58,487 | 257 | 1.78 | ||||||||||||||||||
| Total Interest Bearing Liabilities | 1,699,463 | 2,401 | 0.57 | % | 1,675,882 | 2,264 | 0.54 | % | 1,555,742 | 2,120 | 0.55 | % | |||||||||||||||
| Net interest spread (tax equivalent basis) (4) | 3.79 | % | 3.94 | % | 4.04 | % | |||||||||||||||||||||
| Net interest margin (tax equivalent basis) (5) | 3.92 | % | 4.06 | % | 4.15 | % | |||||||||||||||||||||
| (1) | Average balances include nonaccrual loans, and are net of unearned loan fees of $3,005, $2,589 and $2,372 for 1st Quarter 2016, 4th Quarter 2015 and 1st Quarter 2015, respectively. |
| (2) | Interest income includes fees on loans of $47, $66 and $56 for 1st Quarter 2016, 4th Quarter 2015 and 1st Quarter 2015, respectively. |
| (3) | "Other investments" consists of equity stock in the Federal Home Loan Bank of Atlanta ("FHLB") that Stonegate is required to own based on its transactions with the FHLB. |
| (4) | Interest income and rates include the effects of a tax equivalent adjustment using applicable statutory tax rates to adjust tax exempt interest income on tax exempt loans to a fully taxable basis. |
| (5) | Represents net interest income divided by total interest-earning assets. |
Noninterest Income
Noninterest income of $2.3 million for the first quarter of 2016 declined from $2.5 million for the quarter ended December 31, 2015. During the fourth quarter of 2015 Stonegate recognized a non-recurring gain of $595,000 on the sale of an option contained in a land lease.
Noninterest Expense
Noninterest expense for the three months ended March 31, 2016 increased slightly to $12.5 million from $12.3 million at December 31, 2015 and was less than the $13.5 million for the three months ended March 31, 2015.
Salaries and employee benefits increased to $7.1 million for the first quarter of 2016 versus $6.7 million for the fourth quarter of 2016. This compares with $7.0 million for the three months ended March 31, 2015.
Occupancy and equipment expenses were at $2.1 million for the three months ended March 31, 2016 versus $2.2 million for the three months ended December 31, 2015. Occupancy and equipment expenses were also $2.1 million for the three months March 31, 2015.
Data processing expense increased slightly from $431,000 for the fourth quarter of 2015 to $452,000 for the quarter ended March 31, 2016. Professional fees for the three months ended March 31, 2016 were $604,000. This compared to professional fees of $773,000 for the three months ended December 31, 2015 and $965,000 for the three months ended March 31, 2015. Approximately 20% of professional fees in the first quarter of 2016 were for attorney fees related to forward-looking projects the bank has been and is exploring. Additionally, during the first quarter of 2015, Stonegate incurred approximately $434,000 in legal and other professional fees for merger-related expenses.
The table below outlines the expenses for the quarters ended:
| March 31, 2016 | December 31, 2015 | March 31, 2015 | ||||||
| (in thousands of dollars) | ||||||||
| Salaries and employee benefits | $ | 7,097 | $ | 6,695 | $ | 7,015 | ||
| Occupancy and equipment expense | 2,113 | 2,184 | 2,131 | |||||
| FDIC insurance and state assessments | 383 | 382 | 380 | |||||
| Data processing | 452 | 431 | 826 | |||||
| Loan and other real estate expense | 154 | 95 | 53 | |||||
| Professional fees | 604 | 773 | 965 | |||||
| Core deposit intangible amortization | 414 | 449 | 456 | |||||
| Other operating expenses | 1,319 | 1,331 | 1,639 | |||||
| Totals | $ | 12,536 | $ | 12,340 | $ | 13,465 | ||
On an on-going basis management reviews our noninterest expenses for potential efficiencies. As part of the most recent review, the decision was made, subject to regulatory approval, to merge the Hallandale Beach office into the Hollywood Beach office. It is anticipated the closing of the Hallandale Beach office will take place during the third quarter of 2016 with projected annual savings of approximately $500,000 from the date of closing. We remain committed to providing the highest level of customer service to all our customers and, as we begin this consolidation, we will strive to work with each customer to determine how best to continue to service individual financial needs.
About Stonegate Bank
Stonegate Bank is a full-service commercial bank, providing a wide range of business and consumer financial products and services through its 21 banking offices in its target marketplaces of South and West Florida, which are comprised primarily of Broward, Charlotte, Collier, Hillsborough, Lee, Miami-Dade, Palm Beach and Sarasota Counties in Florida. Stonegate's principal executive office and mailing address is 400 North Federal Highway, Pompano Beach, Florida 33062 and its telephone number is (954) 315-5500.
In conjunction with this earnings report, the Company will offer a live participatory conference call to discuss the financial results for the fourth quarter of 2015. This telephone conference call will be held on Wednesday, April 27, 2016, beginning at 2:30 p.m. Eastern Time. The call-in toll-free telephone number is 1-866-820-3585. The Conference ID# is 92097530. Participants will be asked for their First Name, Last Name and Company Name. An audio replay of the conference call will be available until May 11, 2016, and may be accessed telephonically at 1-855-859-2056 using Conference ID# 92097530.
Forward-Looking Statements
Any non-historical statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The following factors, among others, could cause our actual results to differ: the strength of the United States economy in general and the strength of the local economies in which we conduct operations; our need and ability to incur additional debt or equity financing; our ability to execute our growth strategy through expansion; our ability to comply with the extensive laws and regulations to which we are subject; changes in the securities and capital markets; changes in general market interest rates; legislative and regulatory changes; monetary and fiscal policies of the U.S. Treasury and the Federal Reserve; changes in the quality or composition of our loan portfolios; demand for loan products; changes in deposit flows, real estate values, and competition and other economic, competitive, and technological factors affecting our operations, pricing, products and services; and our ability to manage the risks involved in the foregoing. Additional factors can be found in our filings with the FDIC, which are available at the FDIC's internet site (http://www2.fdic.gov/efr). Forward-looking statements in this press release speak only as of the date of the press release and Stonegate Bank assumes no obligation to update any forward-looking statements or the reasons why actual results could differ.
Participants in the Solicitation
This communication is not a solicitation of a proxy from any security holder of Stonegate Bank or Regent Bancorp, Inc. ("Regent"). However, Stonegate Bank, Regent, their respective directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies from Stonegate Bank's and Regent's shareholders in respect of the anticipated merger. Information regarding the directors and executive officers of Stonegate Bank may be found in its Proxy Statement on Schedule 14A, which was filed with the FDIC on March 18, 2016, and can be obtained free of charge from Stonegate Bank's website or from the FDIC's website (http://www2.fdic.gov/efr). Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and other relevant materials to be filed with the FDIC when they become available. Investors should read the joint proxy statement/prospectus carefully, when it becomes available, before making any voting decision because it will contain important information.
Additional Information and Where to Find It
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed merger, Stonegate intends to file a joint proxy statement of Stonegate and Regent and a prospectus of Stonegate with the FDIC. Stonegate may file other documents with the FDIC regarding the proposed transaction. A definitive joint proxy statement will be mailed to the shareholders of Stonegate and Regent. INVESTORS AND SECURITY HOLDERS ARE ADVISED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE, AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE FDIC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders may obtain a free copy of the joint proxy statement/prospectus and other documents containing information about Stonegate at the FDIC's website at www2.fdic.gov/efr. These documents may be accessed and downloaded for free at Stonegate's website at www.stonegatebank.com or by directing a request to Sharon Jones, Senior Vice President and Chief Financial Officer, Stonegate Bank at 400 N. Federal Hwy., Pompano Beach, Florida 33462, telephone (954) 315-5500.
| Stonegate Bank and Subsidiaries | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | |||||||||
| (in thousands of dollars, except per share data) | |||||||||
| March 31, 2016 | December 31, 2015 | ||||||||
| Assets | |||||||||
| Cash and due from banks | $ | 298,803 | $ | 257,934 | |||||
| Federal funds sold | 30,000 | 30,000 | |||||||
| Securities held to maturity (Fair value of $112,099 at March 31, 2016 and $107,659 at December 31, 2015) | 110,067 | 106,619 | |||||||
| Other investments | 3,049 | 2,895 | |||||||
| Loans, net of allowance for loan losses of $18,494 at March 31, 2016 and $18,149 at December 31, 2015 | 1,867,653 | 1,839,421 | |||||||
| Premises and equipment, net | 25,350 | 25,769 | |||||||
| Bank-owned life insurance | 29,485 | 29,776 | |||||||
| Other real estate owned | 561 | 1,390 | |||||||
| Other assets | 89,747 | 86,634 | |||||||
| Total assets | $ | 2,454,715 | $ | 2,380,438 | |||||
| Liabilities and Stockholders' Equity | |||||||||
| Liabilities | |||||||||
| Total deposits | $ | 2,089,600 | $ | 2,024,367 | |||||
| Other borrowings | 58,663 | 58,638 | |||||||
| Other liabilities | 16,932 | 14,869 | |||||||
| Total liabilities | 2,165,195 | 2,097,874 | |||||||
| Stockholders' Equity | |||||||||
| Senior non-cumulative preferred stock; no shares issued and outstanding as of March 31, 2016 and December 31, 2015 | - | - | |||||||
| Common stock, $5 par value, 20,000,000 shares authorized; 12,796,552 issued and 12,793,894 shares outstanding as of March 31, 2016 and 12,752,402 shares issued and 12,749,744 outstanding as of December 31, 2015 | 63,983 | 63,762 | |||||||
| Additional paid-in capital | 147,938 | 146,994 | |||||||
| Retained earnings | 78,878 | 73,205 | |||||||
| Treasury Stock | (13 | ) | (13 | ) | |||||
| Accumulated other comprehensive income (loss) | (1,266 | ) | (1,384 | ) | |||||
| Total stockholders' equity | 289,520 | 282,564 | |||||||
| Total liabilities and stockholders' equity | $ | 2,454,715 | $ | 2,380,438 | |||||
| Stonegate Bank and Subsidiaries | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (unaudited) | |||||||||||
| (in thousands of dollars, except per share data) | |||||||||||
| For the three months ended | |||||||||||
| March 31, 2016 |
December 31, 2015 |
March 31, 2015 |
|||||||||
| Interest income: | |||||||||||
| Interest and fees on loans | $ | 22,280 | $ | 23,079 | $ | 21,447 | |||||
| Interest on securities | 449 | 446 | 434 | ||||||||
| Interest on federal funds sold and at other banks | 275 | 148 | 139 | ||||||||
| Other interest | 34 | 33 | 36 | ||||||||
| Total interest income | 23,038 | 23,706 | 22,056 | ||||||||
| Interest expense: | |||||||||||
| Interest on deposits | 2,184 | 2,041 | 1,863 | ||||||||
| Other interest | 217 | 223 | 257 | ||||||||
| Total interest expense | 2,401 | 2,264 | 2,120 | ||||||||
| Net interest income | 20,637 | 21,442 | 19,936 | ||||||||
| Provision for loan losses | 193 | 300 | - | ||||||||
| Net interest income after provision for loan losses | 20,444 | 21,142 | 19,936 | ||||||||
| Noninterest income: | |||||||||||
| Service charges and fees on deposit accounts | 707 | 772 | 630 | ||||||||
| Other noninterest income | 1,577 | 1,740 | 839 | ||||||||
| Total noninterest income | 2,284 | 2,512 | 1,469 | ||||||||
| Noninterest expense: | |||||||||||
| Salaries and employee benefits | 7,097 | 6,695 | 7,015 | ||||||||
| Occupancy and equipment expenses | 2,113 | 2,184 | 2,131 | ||||||||
| Data processing | 452 | 431 | 826 | ||||||||
| Professional fees | 604 | 773 | 965 | ||||||||
| Core deposit intangible amortization | 414 | 449 | 456 | ||||||||
| Other operating expenses | 1,856 | 1,808 | 2,072 | ||||||||
| Total noninterest expense | 12,536 | 12,340 | 13,465 | ||||||||
| Income before income taxes | 10,192 | 11,314 | 7,940 | ||||||||
| Income tax | 3,496 | 4,050 | 2,920 | ||||||||
| Net income | 6,696 | 7,264 | 5,020 | ||||||||
| Preferred stock dividend | - | - | 32 | ||||||||
| Net income applicable to common stock | $ | 6,696 | $ | 7,264 | $ | 4,988 | |||||
| Earnings per common share: | |||||||||||
| Basic | $ | 0.52 | $ | 0.57 | $ | 0.40 | |||||
| Diluted | 0.51 | 0.56 | 0.39 | ||||||||
| Common shares used in the calculation of earnings per share: | |||||||||||
| Basic | 12,775,344 | 12,704,558 | 12,418,145 | ||||||||
| Diluted | 13,088,602 | 13,037,123 | 12,739,182 | ||||||||
| Stonegate Bank and Subsidiaries | |||||||||||
| CONDENSED FINANCIAL HIGHLIGHTS | |||||||||||
| (in thousands of dollars) | |||||||||||
| As of | |||||||||||
| March 31, 2016 |
December 31, 2015 |
March 31, 2015 |
|||||||||
| BALANCE SHEET ITEMS: | |||||||||||
| Assets | $ | 2,454,715 | $ | 2,380,438 | $ | 2,256,110 | |||||
| Loans, net | 1,867,653 | 1,839,422 | 1,716,482 | ||||||||
| Deposits | 2,089,600 | 2,024,367 | 1,903,594 | ||||||||
| Stockholders' equity | 289,520 | 282,564 | 273,949 | ||||||||
| CAPITAL RATIOS: | |||||||||||
| Total capital to risk weighted assets | 12.2 | % | 11.9 | % | 12.3 | % | |||||
| Tier 1 capital to risk weighted assets | 11.3 | 11.0 | 11.5 | ||||||||
| Common Equity Tier 1 to risk weighted assets | 11.3 | 11.0 | 10.8 | ||||||||
| Tier 1 capital to average assets | 10.2 | 10.0 | 10.6 | ||||||||
| QUARTERLY AVERAGE BALANCE SHEET ITEMS: |
|||||||||||
| Assets | $ | 2,393,187 | $ | 2,375,948 | $ | 2,179,334 | |||||
| Interest earning assets | 2,165,843 | 2,128,845 | 1,968,752 | ||||||||
| Loans, net | 1,851,841 | 1,825,012 | 1,677,378 | ||||||||
| Interest bearing liabilities | 1,699,463 | 1,674,333 | 1,555,742 | ||||||||
| Deposits | 2,032,157 | 2,015,859 | 1,836,843 | ||||||||
| Stockholders' equity | 287,235 | 279,466 | 266,608 | ||||||||
| Stonegate Bank and Subsidiaries | ||||||||
| CONDENSED FINANCIAL HIGHLIGHTS | ||||||||
| (in thousands of dollars, except per share data) | ||||||||
| Three Months Ended | ||||||||
| March 31, 2015 |
December 31, 2015 |
March 31, 2015 |
||||||
| FINANCIAL DATA: | ||||||||
| Net interest income | $ | 20,637 | $ | 21,442 | $ | 19,936 | ||
| Net interest income - tax equivalent | 21,086 | 21,775 | 20,164 | |||||
| Noninterest income | 2,284 | 2,512 | 1,469 | |||||
| Noninterest expense | 12,536 | 12,340 | 13,465 | |||||
| Income tax | 3,496 | 4,050 | 2,920 | |||||
| Net income | 6,696 | 7,264 | 5,020 | |||||
| Preferred stock dividend | - | - | 32 | |||||
| Net income attributed to common shares | 6,696 | 7,294 | 4,988 | |||||
| Weighted average number of common shares outstanding: | ||||||||
| Basic | 12,775,344 | 12,704,558 | 12,418,145 | |||||
| Diluted | 13,088,602 | 13,037,123 | 12,739,182 | |||||
| Per common share data: | ||||||||
| Basic | $ | 0.52 | $ | 0.57 | $ | 0.40 | ||
| Diluted | 0.51 | 0.56 | 0.39 | |||||
| Cash dividend declared to common shares | 1,024 | 1,020 | 506 | |||||
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with GAAP. Stonegate's management uses these non-GAAP financial measures in their analysis of Stonegate's performance. These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or transactions that in management's opinion can distort period-to-period comparisons of Stonegate's performance. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of Stonegate's core business. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP disclosures in this press release are set forth below.
Reconciliation of GAAP to non-GAAP Measures
(in thousands of dollars, except per share data)
| March 31, 2016 | ||
| Interest income, as reported (GAAP) | $ | 23,038 |
| Tax equivalents adjustments | 449 | |
| Interest income (tax equivalent) | $ | 23,487 |
| Net interest income, as reported (GAAP) | $ | 20,637 |
| Tax equivalent adjustments | 449 | |
| Net interest income (tax equivalent) | $ | 21,086 |
| Net income (GAAP) | $ | 6,696 |
| Non-interest expense adjustments: | ||
| Merger and acquisition related expenses | - | |
| Branch closure expenses | - | |
| Professional expenses | 114 | |
| Tax effect using the effective tax rate for the period presented | 39 | |
| Net operating income | $ | 6,771 |
| Net operating income per common share | $ | 0.53 |
Contact Information:
INVESTOR RELATIONS:
Dave Seleski
Stonegate Bank
(954) 315-5510