LAKE HAVASU CITY, Ariz., July 25, 2017 (GLOBE NEWSWIRE) -- State Bank Corp. (OTCPink:SBAZ) (“Company”), the holding company for Mohave State Bank (“Bank”), today announced net income increased 3.2% to $1.48 million, or $0.18 per diluted share, for the second quarter ended June 30, 2017, compared to $1.43 million, or $0.18 per diluted share, in the first quarter of 2017, and increased 51.9% compared to $974,000, or $0.17 per diluted share, for the second quarter of 2016.
For the first six months of 2017, net income grew 73.9% to $2.91 million, or $0.36 per diluted share, compared to $1.67 million, or $0.29 per diluted share, for the same period of 2016.
“We continue to focus on maximizing our post-merger performance,” stated Brian M. Riley, President and Chief Executive Officer. “Our basic business fundamentals are improving as loans and deposits have significantly increased. Our second quarter and year-to-date profits reflect solid loan production, along with our ability to attract and retain core deposits. The increase in loans and deposits, both from organic growth and the acquisition of Country Bank completed in 3Q16, has strengthened our net interest income and contributed to our healthy net interest margin. We are positioning ourselves to expand our geographic footprint and build additional earnings capacity. We are looking forward to delivering future results as economic conditions in our market areas remain strong.”
“A highlight of the quarter was the sale of our largest other real estate owned (OREO) property, which reduced OREO by 74% during the quarter,” added Riley.
Second Quarter 2017 Financial Highlights:
- Net income, excluding merger related expenses, was $1.51 million, or $0.19 per diluted share.
- Sale of the Bank’s largest OREO property, resulting in total OREO balances of less than $1 million.
- Resolution of a large credit relationship resulting in a loan loss recovery of $492,000.
- Non-performing assets fell to 0.62% of total assets, representing the lowest level since 2Q07.
- Return on average assets, excluding merger related expenses, was 1.01%.
- Return on average equity, excluding merger related expenses, was 10.70%.
- Net interest margin was 3.84% in the second quarter 2017 compared to 3.89% in the preceding quarter and 3.85% in the second quarter a year ago.