SOURCE: Stonegate Bank

Stonegate Bank

April 26, 2016 16:45 ET

Stonegate Bank Announces First Quarter 2016 Operating Results

POMPANO BEACH, FL--(Marketwired - Apr 26, 2016) - Stonegate Bank (NASDAQ: SGBK) ("Stonegate") reported net income of $6.7 million for the first quarter of 2016 or $0.51 per diluted common share ($0.53 per share net operating income, a non-GAAP measurement described below), as compared to net income of $7.3 million for the fourth quarter of 2015 or $0.56 per diluted common share. 

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
    Email Contact
    Stonegate Bank
    (954) 315-5510