Stonegate Bank Announces Second Quarter 2015 Operating Results
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POMPANO BEACH, FL -- (Marketwired) -- 07/20/15 -- Stonegate Bank (NASDAQ: SGBK) ("Stonegate") reported net income of $6.0 million for the second quarter of 2015 or $0.46 per diluted common share ($0.53 per share net operating income, a non-GAAP measurement described below), as compared to net income of $5.0 million for the first quarter of 2015 earnings or $0.39 per diluted common share ($0.44 per share net operating income).
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. A table reconciling GAAP to non-GAAP measures is 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 $47.8 million during the second quarter of 2015 to $1.78 billion at June 30, 2015, a result of net organic loan growth in the second quarter. Commercial and industrial ("C&I") and commercial real estate ("CRE") each comprised 28% of new loan originations for the second quarter of 2015, based upon the outstanding balance as of June 30, 2015, while 18% was in construction and land development, 16% in residential, and the remaining balance in consumer and other loans. The production for the current quarter was 55% variable rate loans, mostly tied to LIBOR, and 45% fixed rate loans.
- Asset Quality: Total loans past due 30 - 89 days, excluding nonaccrual loans, were $2.7 million at June 30, 2015 unchanged from March 31, 2015. Nonaccrual loans were $4.6 million at June 30, 2015, or 0.26% of total loans, up from $4.5 million at March 31, 2015, or 0.26% of total loans. Other real estate owned was $2.4 million at June 30, 2015.
- Net Interest Income and Margin: Net interest income, on a tax equivalent basis, increased $1.8 million for the three months ended June 30, 2015 as compared to the three months ended March 31, 2015. Net interest income totaled $22.0 million for the three months ended June 30, 2015. The net interest margin, on a tax equivalent basis, increased 16 basis points to 4.31% for the second quarter of 2015 up from 4.15% for the first quarter of 2015. The increase in the margin was primarily a result of the increase in the average yield on loans.
- Noninterest Expense: Noninterest expense decreased to $13.3 million for the three months ended June 30, 2015 from $13.5 million for the three months ended March 31, 2015.
- Capital: Stonegate remained well-capitalized as of June 30, 2015 with capital of $267.2 million as compared to $273.9 million at March 31, 2015. During the second quarter of 2015, Stonegate redeemed $12.75 million of preferred stock issued by the U.S. Treasury through its Small Business Lending Fund program ("SBLF"). These preferred shares were issued as part of the Florida Shores Bancorp, Inc. acquisition in early 2014. As of June 30, 2015, Stonegate's total risk-based capital ratio was 11.8%; Stonegate's Tier 1 and Common Equity Tier 1 capital ratio was 10.9%; and Stonegate's leverage capital ratio was 9.9%.
Loans and Deposits
Loans outstanding at June 30, 2015 were $1.78 billion as compared to $1.73 billion at March 31, 2015, an increase of $47.8 million during the second quarter of 2015.
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) June 30, 2015 March 31, 2015
---------------- ----------------
Commercial $ 198,304 $ 182,943
Commercial real estate - owner occupied 460,830 467,512
Commercial real estate - other 548,735 539,196
Construction and land development 184,947 167,014
Residential real estate 325,866 322,743
Consumer and other loans 78,540 71,211
---------------- ----------------
Total loans 1,797,222 1,750,619
Less: discount on loans acquired 13,620 14,997
Less: net deferred fees 2,513 2,372
---------------- ----------------
Recorded investment in loans 1,781,088 1,733,250
Less: Allowance for loan losses 17,414 16,768
---------------- ----------------
Net loans $ 1,763,674 $ 1,716,482
================ ================
New loan originations were $222.0 million during the second quarter of 2015, with fundings of $114.0 million. As of June 30, 2015, outstanding commitments were approximately $386 million with approximately $81 million representing new approved loan originations and approximately $97 million in unfunded construction and land development commitments.
Deposits increased to $1.93 billion at June 30, 2015 from $1.90 billion at March 31, 2015. Noninterest-bearing deposits increased $34.7 million to $399.5 million at June 30, 2015, which represented approximately 21% of total deposits, as compared to $364.8 million at March 31, 2015. Money market accounts increased $49.8 million to $950.0 million at June 30, 2015. Time deposits decreased approximately $34.1 million during the second quarter of 2015 due to runoff of deposits that were priced above the market.
The following table shows the composition of deposits as of June 30, 2015 and March 31, 2015:
(in thousands of dollars) June 30, 2015 March 31, 2015
---------------- ----------------
Noninterest bearing $ 399,479 $ 364,793
NOW 288,590 305,576
Money market 950,019 900,268
Savings 99,425 106,153
Certificates of deposit 192,744 226,804
---------------- ----------------
Total deposits $ 1,930,257 $ 1,903,594
================ ================
Credit Quality and Allowance for Loan Losses
As of June 30, 2015, Stonegate's past due and nonaccrual loans totaled $7.3 million and were 0.41% of total loans as compared to $7.2 million or 0.42% of total loans at March 31, 2015. Loans past due and nonaccrual acquired from Community Bank of Broward ("CBB") totaled $2.3 million as of June 30, 2015. Loans past due 30-89 days were $2.7 million at June 30, 2015, unchanged from March 31, 2015. Nonaccrual loans stood at $4.6 million at June 30, 2015, an increase of $100,000 from $4.5 million at March 31, 2015. This increase was primarily due to the addition of two loans for $758,000 acquired from CBB that were transferred to nonaccrual status; offset by the transfer of two loans for $468,000 to Other Real Estate Owned; and the placement of two loans for approximately $170,000 on accrual status. Legacy nonaccrual loans were approximately $221,000 as of June 30, 2015, virtually unchanged from March 31, 2015. Commercial real estate loans classified as nonaccrual were $3.3 million or 70.5% of the nonaccrual loans as June 30, 2015. As of June 30, 2015, Stonegate did not have any loans past due 90 days or more that were still accruing. As of June 30, 2015, there remained approximately $12.9 million in nonaccretable discounts on loans acquired. Stonegate does not have any loans under which it participates in a loss share arrangement.
Nonperforming assets (nonaccrual loans and other real estate owned) were $7.1 million as of June 30, 2015, an increase of $1.9 million from March 31, 2015. Other real estate owned increased to $2.4 million as of June 30, 2015 as compared to $653,000 as of March 31, 2015. The increase was the result of the transfer of four loans during the quarter.
The following table outlines nonperforming assets for the periods ended:
June 30, March 31,
(in thousands of dollars) 2015 2015
--------------- ---------------
Nonaccrual $ 4,649 $ 4,480
Other real estate owned 2,402 653
--------------- ---------------
Total nonperforming assets $ 7,051 $ 5,133
=============== ===============
Nonperforming loans as a percentage of
total loans 0.26% 0.26%
Nonperforming assets as a percentage of
total assets 0.31% 0.23%
Loans modified as a troubled debt restructuring were $12.5 million and $11.3 million at June 30, 2015 and March 31, 2015, respectively. Loans classified as a troubled debt restructuring and on nonaccrual decreased to $1.2 million at June 30, 2015 from $1.3 million as of March 31, 2015. One loan was modified as troubled debt restructuring during the second quarter of 2015. Specific reserves allocated to loans modified as troubled debt restructuring were $894,000 at June 30, 2015, an increase from $634,000 at March 31, 2015.
At June 30, 2015, the allowance for loan losses was $17.4 million, an increase of $646,000 from March 31, 2015. During the second quarter of 2015, recoveries totaled $121,000 and charge-offs were $25,000. Additionally, $550,000 was added to the allowance for loan losses through a provision expense. Specific reserves decreased to $894,000 at June 30, 2015 from $928,000 at March 31, 2015. The allowance for loan losses represented 0.98% and 0.97% of total loans as of June 30, 2015 and March 31, 2015, respectively. Additionally, the allowance represented 1.47% of total legacy loans as of June 30, 2015. Only legacy loans are covered by the allowance as acquired loans are recorded at their fair value on the date of acquisition and have not experienced significant deterioration above their initial estimate.
The following table shows the activity in the allowance for loan losses for the quarters ended:
June 30, March 31,
(in thousands of dollars) 2015 2015
--------------- ---------------
Balance At Beginning Of Period $ 16,768 $ 16,630
Charge-Offs (25) -
Recoveries 121 138
Provision For Loan Losses 550 -
--------------- ---------------
Balance At End Of Period $ 17,414 $ 16,768
=============== ===============
The table below reflects the allowance allocation per loan category and percent of loans in each category to total loans for the periods indicated:
June 30, March 31,
(in thousands of dollars) 2015 2015
------------------ -----------------
Amount % Amount %
---------- ------ ---------- ------
Commercial $ 1,885 10.8 $ 1,670 10.0
Commercial real estate 11,353 65.2 10,674 63.6
Construction and land development 1,910 11.0 1,606 9.6
Residential real estate 2,239 12.8 2,124 12.6
Consumer and other loans 353 2.1 314 1.9
Unallocated (326) (1.9) 380 2.3
---------- ------ ---------- ------
Total $ 17,414 100.0 $ 16,768 100.0
========== ====== ========== ======
The following is a summary of information pertaining to impaired loans for the three months ended:
June 30, March 31, June 30,
(in thousands of dollars) 2015 2015 2014
------------ ------------ ------------
Impaired loans without a valuation
allowance $ 6,785 $ 7,489 $ 8,150
Impaired loans with a valuation
allowance 7,990 8,034 10,414
------------ ------------ ------------
Total impaired loans $ 14,775 $ 15,523 $ 18,564
============ ============ ============
Valuation allowance related to
impaired loans $ 894 $ 928 $ 1,495
Net Interest Income and Margin
On a tax equivalent basis, Stonegate's net interest income for the three months ended June 30, 2015 was $22.0 million, an increase of approximately $1.8 million from the first quarter of 2015 and an increase of $8.0 million from the second quarter 2014. The increase from the first quarter of 2015 was a result of net organic loan growth while the increase from the second quarter of 2014 was primarily a result of the loans and other interest-earning assets acquired from CBB and organic growth. Average loans for the second quarter of 2015 were $1.74 billion as compared to $1.68 billion for the first quarter of 2015 and $1.19 billion for the second quarter of 2014.
The net interest margin on a tax equivalent basis was 4.31% for the second quarter of 2015 as compared to 4.15% for the first quarter of 2015 and 3.61% for the second quarter of 2014. This represented an increase of 16 basis points from the first quarter of 2015. However, during the second quarter of 2015, Stonegate recognized approximately $130,000 in time deposit fair value amortization from the CBB acquisition that will not be repeated going forward. The net interest margin would have been 4.28% had this reduction in interest expense not occurred during the second quarter of 2015. Additionally, the net interest margin for the second quarter of 2015 was slightly higher due to recognition of nonaccretable discounts on several acquired loans. The average yield on total earning assets was 4.68% for the second quarter of 2015 versus 4.59% for the first quarter of 2015. This increase was due primarily to the increased average yield on loans from 5.24% for the first quarter 2015 to 5.36% for the quarter ended June 30, 2015. The average yield on paying liabilities decreased 7 basis points from 0.55% from the first quarter of 2015 to 0.48% for the second quarter of 2015. The yield on paying liabilities would have been 4 basis points higher at 0.52% if the reduction of interest expense had not occurred during the second quarter. Stonegate's cost of funds has declined from 0.50% for the June 2014 month-to-date average to 0.41% for the June 2015 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)
2nd Quarter 2015 1st Quarter 2015
--------------------------- ---------------------------
Average Average
Balance Interest Rate Balance Interest Rate
----------- -------- ------ ----------- -------- ------
ASSETS
Loans,
Net(1)(2)(4) $ 1,740,670 $ 23,281 5.36% $ 1,677,378 $ 21,675 5.24%
Investment
Securities 107,226 420 1.57 104,809 433 1.68
Federal Funds Sold 20,000 15 0.30 20,147 15 0.30
Other
Investments(3) 2,895 30 4.16 2,822 36 5.17
Deposits with
interest at banks 174,466 141 0.32 163,596 125 0.31
----------- -------- ------ ----------- -------- ------
Total Earning
Assets 2,045,257 23,887 4.68% 1,968,752 22,284 4.59%
----------- -------- ------ ----------- -------- ------
LIABILITIES
Savings, NOW and
Money Market $ 1,332,580 1,596 0.48% $1 ,265,701 $ 1,481 0.47%
Time Deposits 209,209 113 0.22 231,554 382 0.67
----------- -------- ------ ----------- -------- ------
Total Interest
Bearing Deposits 1,541,789 1,709 0.44 1,497,255 1,863 0.50
Other Borrowings 61,550 220 1.43 58,487 257 1.78
----------- -------- ------ ----------- -------- ------
Total Interest
Bearing
Liabilities 1,603,339 1,929 0.48% 1,555,742 2,120 0.55%
----------- -------- ------ ----------- -------- ------
Net interest
spread (tax
equivalent
basis)(4) 4.20% 4.04%
====== ======
Net interest
margin (tax
equivalent
basis)(5) 4.31% 4.15%
====== ======
Yield and cost table (unaudited)
(in thousands of
dollars)
2nd Quarter 2014
---------------------------
Average
Balance Interest Rate
----------- -------- ------
ASSETS
Loans,
Net(1)(2)(4) $ 1,194,718 $ 15,321 5.14%
Investment
Securities 85,103 302 1.42
Federal Funds Sold 16,268 19 0.47
Other
Investments(3) 2,422 25 4.14
Deposits with
interest at banks 256,813 183 0.29
----------- -------- ------
Total Earning
Assets 1,555,324 15,850 4.09%
----------- -------- ------
LIABILITIES
Savings, NOW and
Money Market $ 1,011,515 $ 1,350 0.54%
Time Deposits 196,534 320 0.65
----------- -------- ------
Total Interest
Bearing Deposits 1,208,049 1,670 0.55
Other Borrowings 39,269 193 1.97
----------- -------- ------
Total Interest
Bearing
Liabilities 1,247,318 1,863 0.60%
----------- -------- ------
Net interest
spread (tax
equivalent
basis)(4) 3.49%
======
Net interest
margin (tax
equivalent
basis)(5) 3.61%
======
(1) Average balances include nonaccrual loans, and are net of unearned loan
fees of $2,493, $2,372 and $1,298 for 2nd Quarter 2015, 1st Quarter 2015
and 2nd Quarter 2014, respectively.
(2) Interest income includes fees on loans of $85, $56 and $99 for 2nd
Quarter 2015, 1st Quarter 2015 and 2nd Quarter 2014, 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 $1.6 million for the second quarter of 2015 increased from $1.5 million for the quarter ended March 31, 2015. The increase was attributable to an increase in service charges on deposit accounts.
Noninterest Expense
Noninterest expense for the three months ended June 30, 2015 decreased from $13.5 million at March 31, 2015 to $13.3 million and was also greater than the $12.4 million for the three months ended June 30, 2014. Total merger related expenses were approximately $1.0 million in the second quarter of 2015 as compared to $790,000 in the first quarter of 2015 and $2.2 million in the second quarter of 2014.
Salaries and employee benefits decreased from $7.0 million for the first quarter of 2015 to $6.8 million for the second quarter of 2015. For the three months ended June 30, 2014 salaries and employee benefits were $5.7 million. The decrease over March 31, 2015 was primarily the result of cost savings recognized as the result of the CBB conversion.
Occupancy and equipment expenses were $2.4 million, $2.1 million and $2.5 million for the three months ended June 30, 2015, March 31, 2015 and June 30, 2014, respectively. The increase, when compared to the first quarter of 2015, was due to the costs associated with a merger-related branch closing during the second quarter of 2015. Expenses for merger-related branch closures were approximately $810,000 during the second quarter of 2014.
Professional fees decreased for the three months ended June 30, 2015 to $657,000. This compared to professional fees of $965,000 for the three months ended March 31, 2015 and $725,000 for the three months ended June 30, 2014. There were no merger-related legal or professional fees during the second quarter of 2015 or 2014 as compared to approximately $434,000 during the first quarter of 2015. Legal costs and other costs associated with registering the Bank's common stock under the Securities Exchange Act of 1934, as amended, and listing the Bank's common stock for trading on the Nasdaq Stock Market were approximately $180,000 during the second quarter of 2014.
The table below outlines the expenses for the quarters ended:
June 30, 2015 March 31, 2015 June 30, 2014
------------- -------------- -------------
(in thousands of dollars)
Salaries and employee benefits $ 6,792 $ 7,015 $ 5,706
Occupancy and equipment expense 2,416 2,131 2,484
FDIC insurance and state
assessments 379 380 327
Data processing 1,117 826 1,430
Loan and other real estate
expense 153 54 127
Professional fees 657 965 725
Core deposit intangible
amortization 448 456 327
Other operating expenses 1,341 1,639 1,271
------------- -------------- -------------
Totals $ 13,303 $ 13,466 $ 12,397
============= ============== =============
The majority of merger and conversion costs associated with the CBB acquisition were expensed by the end of the second quarter of 2015 and Stonegate expects the full realization of the associated cost savings will begin in the third quarter of 2015.
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 second quarter of 2015. This telephone conference call will be held on Wednesday, July 22, 2015, beginning at 2:30 p.m. Eastern Time. The call-in toll-free telephone number is 1-866-820-3585. There is no Conference ID required. Participants will be asked for their First Name, Last Name and Company Name. An audio replay of the conference call will be available until August 22, 2015, and may be accessed telephonically at 1-855-859-2056 using Conference ID# 80319629.
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.
Stonegate Bank and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands of dollars, except per share data)
June 30, December 31,
2015 2014
------------- -------------
Assets
Cash and due from banks $ 227,995 $ 231,406
Federal funds sold 20,000 20,000
Securities held to maturity (Fair value of
$109,307 at June 30, 2015 and $83,318 at
December 31, 2014) 108,369 81,627
Other investments 2,895 2,422
Loans, net of allowance for loan losses of
$17,414 at June30, 2015 and $16,630 at
December 31, 2014 1,763,674 1,292,692
Premises and equipment, net 27,703 25,620
Bank-owned life insurance 29,382 22,832
Other real estate owned 2,402 259
Other assets 89,712 46,436
------------- -------------
Total assets $ 2,272,132 $ 1,723,294
============= =============
Liabilities and Stockholders' Equity
Liabilities
Total deposits $ 1,930,257 $ 1,452,194
Other borrowings 61,953 56,297
Other liabilities 12,740 13,688
------------- -------------
Total liabilities 2,004,950 1,522,179
------------- -------------
Stockholders' Equity
Senior non-cumulative perpetual preferred
stock, Series A, $1,000 liquidation value;
12,750 shares authorized; no shares issued
and outstanding as of June 30, 2015; 12,750
issued and outstanding as of December 31,
2014 - 12,750
Common stock, $5 par value, 20,000,000 shares
authorized; 12,643,752 issued and 12,641,094
shares outstanding as of June 30, 2015 and
10,257,163 shares issued and 10,254,505
outstanding as of December 31, 2014 63,219 51,286
Additional paid-in capital 144,893 88,180
Retained earnings 60,630 50,641
Treasury Stock (13) (13)
Accumulated other comprehensive income (loss) (1,547) (1,729)
------------- -------------
Total stockholders' equity 267,182 201,115
------------- -------------
Total liabilities and stockholders' equity $ 2,272,132 $ 1,723,294
============= =============
Stonegate Bank and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)
(in thousands of dollars, except per share data)
For the three months ended
June 30, March 31, June 30,
2015 2015 2014
Interest income:
Interest and fees on loans $ 23,018 $ 21,447 $ 15,190
Interest on securities 420 434 302
Interest on federal funds sold and at
other banks 156 139 202
Other interest 30 36 25
----------- ----------- -----------
Total interest income 23,624 22,056 15,719
----------- ----------- -----------
Interest expense:
Interest on deposits 1,709 1,863 1,670
Other interest 220 257 193
----------- ----------- -----------
Total interest expense 1,929 2,120 1,863
----------- ----------- -----------
Net interest income 21,695 19,936 13,856
Provision for loan losses 550 - -
----------- ----------- -----------
Net interest income after
provision for loan losses 21,145 19,936 13,856
----------- ----------- -----------
Noninterest income:
Service charges and fees on deposit
accounts 681 630 292
Other noninterest income 952 840 771
----------- ----------- -----------
Total noninterest income 1,633 1,470 1,063
----------- ----------- -----------
Noninterest expense:
Salaries and employee benefits 6,792 7,015 5,706
Occupancy and equipment expenses 2,416 2,131 2,484
Data processing 1,117 826 1,430
Professional fees 657 965 725
Core deposit intangible
amortization 448 456 327
Other operating expenses 1,873 2,073 1,725
----------- ----------- -----------
Total noninterest expense 13,303 13,466 12,397
----------- ----------- -----------
Income before income taxes 9,475 7,940 2,522
Income tax 3,437 2,920 618
----------- ----------- -----------
Net income 6,038 5,020 1,904
Preferred stock dividend 26 32 64
----------- ----------- -----------
Net income applicable to common
stock $ 6,012 $ 4,988 $ 1,840
=========== =========== ===========
Earnings per common share:
Basic $ 0.48 $ 0.40 $ 0.18
Diluted 0.46 0.39 0.18
Common shares used in the calculation
of earnings per share:
Basic 12,636,874 12,418,145 10,090,855
Diluted 12,965,834 12,739,182 10,414,438
Stonegate Bank and Subsidiaries
CONDENSED FINANCIAL HIGHLIGHTS
(in thousands of dollars)
As of
June 30, March 31, June 30,
2015 2015 2014
----------- ----------- -----------
BALANCE SHEET ITEMS:
Assets $ 2,272,132 $ 2,256,110 $ 1,656,857
Loans, net 1,763,674 1,716,482 1,193,645
Deposits 1,930,257 1,903,594 1,413,842
Stockholders' equity 267,182 273,949 191,174
CAPITAL RATIOS:
Total capital to risk weighted assets 11.8% 12.3% 14.8%
Tier 1 capital to risk weighted assets 10.9 11.5 13.5
Common Equity Tier 1 to risk weighted
assets 10.9 10.8 N/A
Tier 1 capital to average assets 9.9 10.6 10.4
QUARTERLY AVERAGE BALANCE SHEET ITEMS:
Assets $ 2,275,701 $ 2,179,334 $ 1,689,894
Interest earning assets 2,045,257 1,968,752 1,555,324
Loans, net 1,723,879 1,660,678 1,176,495
Interest bearing liabilities 1,603,339 1,555,742 1,247,318
Deposits 1,922,914 1,836,843 1,450,964
Stockholders' equity 275,906 266,608 189,755
Stonegate Bank and Subsidiaries
CONDENSED FINANCIAL HIGHLIGHTS
(in thousands of dollars, except per share data)
Three Months Ended
June 30, March 31, June 30,
2015 2015 2014
----------- ----------- -----------
FINANCIAL DATA:
Net interest income $ 21,695 $ 19,936 $ 13,856
Net interest income - tax equivalent 21,958 20,164 13,897
Noninterest income 1,633 1,470 1,063
Noninterest expense 13,303 13,466 12,397
Income tax 3,437 2,920 618
Net income 6,038 5,020 1,904
Preferred stock dividend 26 32 64
Net income attributed to common shares 6,012 4,988 1,840
Weighted average number of common shares outstanding:
Basic 12,636,874 12,418,145 10,090,855
Diluted 12,965,834 12,739,182 10,414,438
Per common share data:
Basic $ 0.48 $ 0.40 $ 0.18
Diluted 0.46 0.39 0.18
Cash dividend declared to common shares 505 505 407
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)
June 30, 2015 March 31, 2015
--------------- ----------------
Interest income, as reported (GAAP) $ 23,624 $ 22,056
Tax equivalents adjustments 263 228
--------------- ----------------
Interest income (tax equivalent) $ 23,887 $ 22,284
=============== ================
Net interest income, as reported (GAAP) $ 21,695 $ 19,936
Tax equivalent adjustments 263 228
--------------- ----------------
Net interest income (tax equivalent) $ 21,958 $ 20,164
=============== ================
Net income (GAAP) $ 6,038 $ 5,020
Non-interest expense adjustments:
Merger and acquisition related expenses 824 355
Branch closure expenses 228 -
Professional expenses - 434
--------------- ----------------
Tax effect using the effective tax rate for
the period presented 382 293
--------------- ----------------
Net operating income $ 6,708 $ 5,516
=============== ================
Net operating income per common share $ 0.53 $ 0.44
=============== ================
INVESTOR RELATIONS: Dave Seleski Email Contact Stonegate Bank (954) 315-5510
Source: Stonegate Bank
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