State Bank Corp. Earnings Increase 13.4% to $772,000, or $0.13 per Share, in 2Q15 from 1Q15; Highlighted by Continued Strong Loan and Core Deposit Growth
LAKE HAVASU CITY, Arizona, July 24, 2015 – State Bank Corp. (OTCQB:SBAZ) (“Company”), the holding company for Mohave State Bank (“Bank”), today announced net income increased 13.4% to $772,000, or $0.13 per diluted share, for the second quarter ended June 30, 2015, compared to $681,000, or $0.12 per diluted share, in the first quarter of 2015. Net income was $3,798,000, or $0.65 per diluted share, for the second quarter of 2014, which included a $3.24 million tax benefit as a result of the reversal of its deferred tax asset valuation allowance. Second quarter 2015 pretax income increased 112.4% to $1.19 million, compared to $558,000 in the second quarter a year ago.
For the six months ended June 30, 2015, net income totaled $1.45 million, or $0.25 per diluted share, compared to $4.27 million, or $0.73 per diluted share, for the same period of 2014. Pretax income increased 115.9% to $2.22 million in the first six months of 2015 compared to $1.03 million in the first six months of 2014.
“During the second quarter we generated excellent operating results. We are successfully growing our franchise, expanding the balance sheet and improving the bottom line,” stated Brian M. Riley, President and Chief Executive Officer. “As the regional economic recovery continues to build, we are seeing increasing demand for loans from customers throughout our markets. We believe that our franchise is starting to generate forward momentum and we are encouraged by the outlook for our business in the next few years.”
Second Quarter 2015 Financial Highlights:
- Pre-tax income increased 112.4% to $1.19 million in the second quarter, compared to $558,000 in the second quarter 2014. After tax comparisons were affected by a one-time income tax benefit that was recorded in the prior year.
- The net interest margin remained healthy at 4.22%.
- The mortgage department originated 93 loans totaling $18.1 million, resulting in quarterly operating profit of $240,000.
- Loans held for investment increased 9.76% to $235.9 million during the second quarter compared to three months earlier.
- Non-performing assets decreased by $3.6 million to $10.4 million at June 30, 2015 on the sale of three properties and continued resolution of problem credits.
- Tangible book value per share increased 5.9% to $6.13 per share, compared to $5.79 a year ago.
“Our solid second quarter net interest margin was a result of our improved earning asset mix, modestly higher yields on cash and securities and reduced cost of deposits, which generally offset the continuing downward pressure on loan yields,” added Riley.