State Bank Corp. Earnings Increase 38% to $1.1 Million or $0.18 per Share, in 3Q15 from 2Q15; Highlighted by the Sale of the Bank’s Yuma Branch at a 4.45% Deposit Premium
LAKE HAVASU CITY, Arizona, October 26, 2015 – State Bank Corp. (OTCQB:SBAZ) (“Company”), the holding company for Mohave State Bank (“Bank”), today announced net income increased 38.2% to $1,067,000, or $0.18 per diluted share, for the third quarter ended September 30, 2015, compared to $772,000, or $0.13 per diluted share, in the second quarter of 2015 and increased 74.3% compared to $612,000, or $0.10 per diluted share, for the third quarter of 2014. The current quarter results included a $735,000 pre-tax gross gain resulting from the sale of the Bank’s Yuma branch on September 4, 2015.
For the nine months ended September 30, 2015, net income totaled $2.52 million, or $0.43 per diluted share, compared to $4.88 million, or $0.83 per diluted share, for the same period of 2014. 2014 results included a $3.24 million tax benefit as a result of the reversal of its deferred tax asset valuation allowance. Pretax income increased 96.5% to $3.88 million in the first nine months of 2015 compared to $1.97 million in the first nine months of 2014.
“Our solid third quarter results reflect the progress we are making in building a strong franchise in the Western Arizona markets that we serve. Total loans grew by $14.4 million, or 7.1% year-over-year, and at the same time our net interest margin expanded 16 basis points from the third quarter a year ago to 4.31%,” stated Brian M. Riley, President and Chief Executive Officer. “The greater Arizona economy continues to show strong economic activity resulting in increased loan demand and solid core deposit growth. We are well positioned to take advantage of new growth opportunities in our markets which are benefiting from growing tourist volumes and the in-migration of retirees.”
Third Quarter 2015 Financial Highlights:
- Net income increased 38.2% to $1.07 million in the third quarter, compared to $612,000 in the third quarter 2014.
- Recognized a pre-tax gross gain of $735,000 on the sale of the Yuma branch, based on a deposit premium of 4.45%.
- The net interest margin increased to 4.31% compared to 4.15% in the third quarter of 2014.
- Non-performing assets decreased to $10.7 million at quarter-end and further improved to $8.0 million following the end of the third quarter, reflecting continued resolution of problem credits and the sale of three foreclosed assets. As of October 9, 2015, nonperforming assets to total assets was 2.5%.
- Tangible book value per share increased 7.6% to $6.34 per share, compared to $5.89 a year ago.
(The Cereghino Group October 26, 2015)