SOURCE: Stonegate Bank

Stonegate Bank

January 26, 2015 18:56 ET

Stonegate Bank Announces Fourth Quarter 2014 Operating Results

POMPANO BEACH, FL--(Marketwired - Jan 26, 2015) -  Stonegate Bank (NASDAQ: SGBK) ("Stonegate") reported net income of $5.2 million for the fourth quarter of 2014 or $0.49 per diluted common share ($0.42 per share net operating income, a non-GAAP measurement described below), as compared to the third quarter of 2014 earnings of $3.6 million or $0.34 per diluted common share ($0.37 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 fourth quarter:

  • Loans: Total loans, net of discounts and deferred fees, grew $75.7 million during the fourth quarter of 2014 to $1.31 billion at December 31, 2014. Organic loan growth for the year ended December 31, 2014 was approximately $152 million or 13%. Loan growth in the fourth quarter was largely due to the origination of $167.9 million in loans. Based on the December 31, 2014 outstanding balance for new loan originations, commercial real estate ("CRE") accounted for approximately 46% of the originations, 23% was in commercial and industrial ("C&I"), 16% in construction and land development, 13% in residential and 2% in consumer and other loans. The production for the current quarter was 38% fixed rate loans and 62% variable rate loans, mostly tied to the prime index rate. 

  • Asset Quality: Total loans past due 30 - 89 days, excluding nonaccrual loans, were $276,000 at December 31, 2014 as compared to $889,000 at September 30, 2014. Nonaccrual loans were $3.7 million at December 31, 2014, or 0.28% of total loans, down from $5.0 million at September 30, 2014, or 0.40% of total loans. Other real estate owned was $258,000 at December 31, 2014.

  • Net Interest Income and Margin: Net interest income, on a tax equivalent basis, increased $700,000 for the three months ended December 31, 2014 as compared to the three months ended September 30, 2014. Net interest income totaled $14.8 million for the three months ended December 31, 2014. The net interest margin, on a tax equivalent basis, increased 11 basis points to 3.78% for the fourth quarter of 2014 from 3.67% for the third quarter of 2014. The increase in the margin is primarily a result of the use of lower yielding excess balances on deposits held at the Federal Reserve Bank and other correspondent banks to fund new loan originations during the fourth quarter.

  • Noninterest Expense: Noninterest expense decreased to $9.2 million for the three months ended December 31, 2014 from $9.4 million for the three months ended September 30, 2014. This change was primarily due to the decrease in salaries and employee benefits. 

  • Capital: Stonegate remained well-capitalized as of December 31, 2014 with capital of $200.8 million. Stonegate's total risk-based capital ratio was 14.4%; Stonegate's Tier 1 capital ratio was 13.1%; and Stonegate's leverage capital ratio was 10.9%.

Loans and Deposits

Loans outstanding at December 31, 2014 were $1.31 billion as compared to $1.23 billion at September 30, 2014, an increase of $75.7 million during the fourth quarter of 2014. This net increase is a result of organic loan growth. 

The loan portfolio consists primarily of loans to individuals and small- and medium-sized businesses within our primary market areas of South and West Florida. The table below shows the loan portfolio composition:

         
         
(in thousands of dollars)   December 31, 2014   September 30, 2014
             
Commercial   $ 203,047   $ 177,213
Commercial real estate - owner occupied     336,199     305,310
Commercial real estate - other     354,865     353,438
Construction and land development     125,501     104,416
Residential real estate     256,021     261,506
Consumer and other loans     44,507     42,408
  Total loans     1,320,140     1,244,291
Less: discount on loans acquired     8,742     9,209
Less: net deferred fees     2,076     1,460
Recorded investment in loans     1,309,322     1,233,622
Less: Allowance for loan losses     16,630     18,429
  Net loans   $ 1,292,692   $ 1,215,193
             

New loan originations were $167.9 million during the fourth quarter of 2014. As of December 31, 2014, outstanding commitments were approximately $284 million with approximately $50 million representing new approved loan originations and approximately $111 million in unfunded construction and land development commitments.

Deposits increased to $1.45 billion at December 31, 2014 from $1.41 billion at September 30, 2014. Noninterest-bearing deposits remained virtually unchanged at $235.0 million at December 31, 2014 as compared to $234.9 million at September 30, 2014. NOW accounts increased to $226.7 million as of December 31, 2014 from $210.4 million as of September 30, 2014. Money market deposits grew from $776.8 million at September 30, 2014 to $816.4 million at December 31, 2014. During the fourth quarter Stonegate experienced $13.2 million in expected runoff of certificates of deposit that were priced above market and were largely from the acquired banks.

The following table shows the composition of deposits as of December 31, 2014 and September 30, 2014:

         
         
(in thousands of dollars)   December 31, 2014   September 30, 2014
             
Noninterest bearing   $ 234,981   $ 234,906
NOW     226,696     210,375
Money market     816,384     776,823
Savings     11,007     12,047
Certificates of deposit     163,126     176,337
  Total deposits   $ 1,452,194   $ 1,410,488
             

Credit Quality and Allowance for Loan Losses

As of December 31, 2014 Stonegate's past due and nonaccrual loans totaled $3.9 million and were 0.30% of total loans as compared to $5.9 million or 0.50% at September 30, 2014 and $6.8 million or 0.84% at December 31, 2013. Loans past due 30-89 days were $276,000 versus $889,000 at September 30, 2014, a decrease of $613,000. Legacy loans past due totaled $11,000 at December 31, 2014. Nonaccrual loans stood at $3.7 million at December 31, 2014, a decrease of $1.3 million from $5.0 million at September 30, 2014. This decrease was primarily the result of the payoff of two loans totaling $633,000. Legacy nonaccrual loans were approximately $68,000 at December 31, 2014 and were virtually unchanged from September 30, 2014. Acquired nonaccrual loans with a nonaccretable discount were $1.7 million as of December 31, 2014, net of the $1.4 million discount. Commercial real estate loans classified as nonaccrual were $2.7 million or 73.0% of the nonaccrual loans as of December 31, 2014. As of December 31, 2014, Stonegate did not have any loans past due 90 days or more that were still accruing. As of December 31, 2014, there remained approximately $9.0 million in nonaccretable discounts on loans acquired. Stonegate does not have any loans under which it participates in a loss share arrangement. 

Nonperforming assets were $3.9 million as of December 31, 2014, a decline of $1.1 million from September 30, 2014 and a decline of $4.3 million from June 30, 2014. Other real estate owned increased to $258,000 as of December 31, 2014 as compared to $33,000 as of September 30, 2014. The increase was the result of the transfer of one parcel of vacant land from non-performing loans during the quarter.

The following outlines nonperforming assets for the periods ended:

             
             
(in thousands of dollars)   December 31, 2014     September 30, 2014  
                 
Nonaccrual   $ 3,657     $ 4,963  
Other real estate owned     258       33  
  Total nonperforming assets   $ 3,915     $ 4,996  
                 
Nonperforming loans as a percentage of total loans     0.30 %     0.40 %
Nonperforming assets as a percentage of total assets     0.23 %     0.30 %
                 

Loans modified as troubled debt restructuring were $11.4 million and $12.0 million at December 31, 2014 and September 30, 2014, respectively. Loans classified as troubled debt restructuring and on nonaccrual totaled $1.3 million as of December 31, 2014, a decrease of $600,000 from September 30, 2014. There were no loans modified as troubled debt restructuring during the fourth quarter of 2014. Specific reserves allocated to loans modified as troubled debt restructuring decreased from $1.1 million at September 30, 2014 to $650,000 at December 31, 2014.

At December 31, 2014, the allowance for loan losses was $16.6 million, a decrease of $677,000 from December 31, 2013. During the fourth quarter of 2014 Stonegate recorded a negative provision for loan loss expense of $1.6 million, and had $449,000 in charge-offs and recoveries of $225,000. Specific reserves decreased from $1.5 million at December 31, 2013, to $850,000 at December 31, 2014. The negative provision for loan losses in the fourth quarter was a result of the favorable change in Stonegate's past due loans, impaired loans and net charge-offs during 2014 as well as the strengthening U.S. and local economies. The allowance for loan losses represented 1.27% and 2.13% of total loans as of December 31, 2014 and December 31, 2013, respectively. Additionally, the allowance represented 1.65% of total legacy loans as of December 31, 2014. 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 years ended:

             
             
(in thousands of dollars)   December 31, 2014     December 31, 2013  
                 
Balance At Beginning Of Period   $ 17,307     $ 15,891  
Charge-Offs     (802 )     (1,700 )
Recoveries     1,175       672  
Provision For Loan Losses     (1,050 )     2,444  
Balance At End Of Period   $ 16,630     $ 17,307  
                 

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)   December 31, 2014   December 31, 2013
    Amount   %   Amount   %
Commercial   $ 2,271   13.7   $ 1,883   10.9
Commercial real estate     9,778   58.8     11,616   67.1
Construction and land development     2,079   12.5     1,383   8.0
Residential real estate     2,291   13.8     2,186   12.6
Consumer and other loans     209   1.2     64   0.4
Unallocated     2   0.0     175   1.0
  Total   $ 16,630   100.0   $ 17,307   100.0
                       

The following is a summary of information pertaining to impaired loans for the three months ended:

             
             
(in thousands of dollars)   December 31, 2014   September 30, 2014   December 31, 2013
                   
Impaired loans without a valuation allowance   $ 8,072   $ 7,923   $ 9,319
Impaired loans with a valuation allowance     7,165     8,658     9,468
Total impaired loans   $ 15,237   $ 16,581   $ 18,787
                   
Valuation allowance related to impaired loans   $ 853   $ 1,289   $ 1,456
                   

As a result of the Community Bank of Broward acquisition completed on January 8, 2015, we anticipate the percentage of total classified and nonaccrual loans will be marginally higher in the first quarter of 2015 than our recent historical levels. We also expect this trend will likely continue through 2015 while we continue working to resolve problem loans.

Net Interest Income and Margin

On a tax equivalent basis Stonegate's net interest income for the three months ended December 31, 2014 was $14.8 million, which was an increase of approximately $700,000 from the third quarter of 2014 and an increase of $5.1 million from the fourth quarter 2013. The increase from the third quarter of 2014 was a result of net loan growth while the increase over the fourth quarter of 2013 was due primarily to an increase in loans of $346 million from the Florida Shores Bancorp acquisition and organic growth. Average loans for the fourth quarter of 2014 were $1.28 billion as compared to $1.22 billion for the third quarter of 2014 and $785 million for the fourth quarter of 2013. Due to the growth in net loans, deposits with interest at the Federal Reserve Bank and other correspondent banks declined $25.1 million from September 2014.

The net interest margin on a tax equivalent basis was 3.78% for the fourth quarter of 2014 as compared to 3.67% for the third quarter of 2014 and 3.82% for the fourth quarter of 2013. This represented an increase of 11 basis points from the third quarter of 2014. The yield on total earning assets was 4.25% for the fourth quarter of 2014 versus 4.14% for the third quarter of 2014 with the increase due primarily to an increase in average loans outstanding during the fourth quarter while the lower yielding excess balances held at the Federal Reserve Bank and other correspondent banks decreased. The yield on loans for the fourth quarter decreased from 5.03% to 5.01% from the prior quarter. The average yield on paying liabilities remained unchanged at 0.58% from the third quarter of 2014 but is 18 basis points lower than the fourth quarter of 2013 which was 0.76%. The decline from the fourth quarter of 2013 was primarily due to the decrease in the cost of funds of legacy deposits and as a result of lower cost deposits assumed with the Florida Shores Bancorp acquisition. Stonegate's cost of funds has declined from 0.61% for the December 2013 month-to-date average to 0.49% for the December 2014 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)  
   
    4th Quarter 2014     3rd Quarter 2014     4th Quarter 2013  
    Average Balance   Interest   Rate     Average Balance   Interest   Rate     Average Balance   Interest   Rate  
ASSETS                                          
Loans, Net(1)(2)(4)   $ 1,278,430   $ 16,135   5.01 %   $ 1,218,116   $ 15,450   5.03 %   $ 785,054   $ 10,800   5.46 %
Investment Securities     82,572     330   1.59       88,822     300   1.34       71,139     298   1,66  
Federal Funds Sold     20,000     15   0.30       20,000     10   0.20       10,000     8   0.32  
Other Investments(3)     2,422     26   4.26       2,422     22   3.60       2,039     14   2.72  
Deposits with interest at banks     169,919     127   0.30       194,987     143   0.29       137,476     95   0.27  
Total Earning Assets     1,553,343     16,633   4.25 %     1,524,347     15,925   4.14 %     1,005,708     11,215   4.42 %
                                                       
                                                       
LIABILITIES                                                      
Savings, NOW and Money Market   $ 1 ,023,698   $ 1,351   0.52 %   $ 999,423   $ 1,336   0.53 %   $ 645,542   $ 1,087   0.67 %
Time Deposits     169,660     256   0.60       183,597     267   0.58       99,831     216   0.86  
Total Interest Bearing Deposits     1,193,358     1,607   0.53       1,183,020     1,603   0.54       745,373     1,303   0.69  
Other Borrowings     55,137     213   1.53       51,709     210   1.61       52,676     217   1.63  
Total Interest Bearing Liabilities     1,248,495     1,820   0.58 %     1,234,729     1,813   0.58 %     798,049     1,520   0.76 %
                                                       
Net interest spread (tax equivalent basis) (4)               3.67 %               3.56 %               3.66 %
Net interest margin (tax equivalent basis) (5)               3.78 %               3.67 %               3.82 %
                                                       
(1) Average balances include nonaccrual loans, and are net of unearned loan fees of $1,859, $1,403 and $1,021 for 4th Quarter 2014, 3rd Quarter 2014 and 4th Quarter 2013, respectively.
(2) Interest income includes fees on loans of $27, $23 and $22 for 4th Quarter 2014, 3rd Quarter 2014 and 4th Quarter 2013, 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 $1.2 million for the fourth quarter of 2014 was a slight increase from $1.1 million for the quarter ended September 30, 2014. While total noninterest income did not change quarter over quarter, it bears noting that service charges and fees on deposit accounts increased by approximately 7.0% during the fourth quarter of 2014 over the third quarter of 2014 as a result of management's continued emphasis to reduce waived fees and increase noninterest income. 

Noninterest Expense

Noninterest expense for the three months ended December 31, 2014 declined from $9.4 million at September 30, 2014 to $9.2 million but was greater than the $6.5 million for the three months ended December 31, 2013. 

Salaries and employee benefits declined from $5.3 million during the third quarter of 2014 to $5.1 million for the fourth quarter of 2014. For the three months ended September 30, 2013 salaries and employee benefits were $3.6 million. The increase over December 31, 2013 was primarily the result of adding additional staff from the Florida Shores Bancorp acquisition.

Occupancy and equipment expenses were $1.4 million, $1.6 million and $836,000 for the three months ended December 31, 2014, September 30, 2014 and December 31, 2013, respectively. The increase when compared to the fourth quarter of 2013 was due to the expense associated with the additional branches added from the Florida Shores Bancorp acquisition.

Professional fees declined slightly for the three months ended December 31, 2014 to $682,000. This compared to professional fees of $692,000 for the three months ended September 30, 2014 and $1.1 million for the three months ended December 31, 2013. During the fourth quarter of 2014 Stonegate incurred approximately $125,000 in legal and other professional fees for merger related expenses as compared to $210,000 in the third quarter of 2014. Included in professional fees for the quarter ended December 31, 2013 was approximately $570,000 of merger related costs.

The increase in loan and other real estate expenses during the quarter ended December 31, 2014 from the prior quarter was a result of the reversal of an accrual for real estate taxes associated with delinquent loans and other real estate owned during the third quarter. This is a direct result of the improvement in Stonegate's nonperforming assets.

The table below outlines the expenses for the quarters ended:

                 
                 
(in thousands of dollars)   December 31, 2014   September 30, 2014     December 31, 2013  
                 
Salaries and employee benefits   $ 5,083   $ 5,313     $ 3,595  
Occupancy and equipment expense     1,447     1,589       836  
FDIC insurance and state assessments     326     251       193  
Data processing     322     319       176  
Loan and other real estate expense     86     (83 )     (123 )
Professional fees     682     692       1,140  
Core deposit intangible amortization     326     327       57  
Other operating expenses     883     1,012       667  
Totals   $ 9,155   $ 9,420     $ 6,541  
                       

We anticipate that merger and conversion costs associated with the recent Community Bank of Broward acquisition will be expensed by the end of the second quarter of 2015 and we estimate that the realization of the associated cost saves will begin fully 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 22 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 2014. This telephone conference call will be held on Tuesday, January 27, 2015, beginning at 2:30 p.m. EST. The call-in toll-free telephone number is 1-855-837-2944. 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 February 26, 2015, and may be accessed telephonically at 1-855-859-2056 using Conference ID# 66967682. 

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)
             
    December 31, 2014     December 31, 2013  
Assets                
Cash and due from banks   $ 231,406     $ 190,226  
Federal funds sold     20,000       10,000  
Securities held to maturity (Fair value of $83,073 at December 31, 2014 and $71,781 at December 31, 2013)     81,627       71,639  
Other investments     2,422       2,039  
Loans, net of allowance for loan losses of $16,630 and $17,307 at December 31, 2014 and 2013, respectively     1,292,692       794,702  
Premises and equipment, net     25,620       12,310  
Bank-owned life insurance     22,832       17,339  
Other real estate owned     259       2,120  
Other assets     46,586       19,559  
    Total assets   $ 1,723,444     $ 1,119,934  
                 
Liabilities and Stockholders' Equity                
Liabilities                
  Total deposits   $ 1,452,194     $ 935,477  
  Other borrowings     56,297       42,733  
  Other liabilities     14,123       10,262  
    Total liabilities     1,522,614       988,472  
                 
Stockholders' Equity                
  Preferred stock, $5 par value, 4,000,000 shares authorized;12,750 outstanding as of December 31, 2014 and none outstanding as of December 31, 2013     12,750       -  
  Common stock, $5 par value, 20,000,000 shares authorized; 10,257,163 issued and 10,254,505 shares outstanding as of December 31, 2014 and 8,241,992 shares issued and 8,239,334 outstanding as of December 31, 2013     51,286       41,210  
  Additional paid-in capital     87,846       52,810  
  Retained earnings     50,641       39,614  
  Treasury Stock     (13 )     (13 )
  Accumulated other comprehensive income (loss)     (1,680 )     (2,159 )
    Total stockholders' equity     200,830       131,462  
    Total liabilities and stockholders' equity   $ 1,723,444     $ 1,119,934  
                     
 
 
Stonegate Bank and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)
 (in thousands of dollars, except per share data)
     
    For the three months ended
    December 31,
2014
    September 30,
2014
  December 31,
2013
Interest income:                    
  Interest and fees on loans   $ 15,929     $ 15,265   $ 10,643
  Interest on securities     330       300     298
  Interest on federal funds sold and at other banks     142       153     103
  Other interest     26       22     14
  Total interest income     16,427       15,740     11,058
                     
Interest expense:                    
  Interest on deposits     1,607       1,603     1,303
  Other interest     213       210     217
    Total interest expense     1,820       1,813     1,520
      Net interest income     14,607       13,927     9,538
  Provision for loan losses     (1,575 )     -     1,068
                           
      Net interest income after provision for loan losses     16,182       13,927     8,470
                     
Noninterest income:                    
  Service charges and fees on deposit accounts     418       392     252
  Other noninterest income     768       710     1,830
    Total noninterest income     1,186       1,102     2,082
Noninterest expense:                    
  Salaries and employee benefits     5,083       5,313     3,595
  Occupancy and equipment expenses     1,447       1,589     836
  Data processing     322       319     176
  Professional fees     682       692     1,140
  Core deposit intangible amortization     326       327     57
  Other operating expenses     1,295       1,180     737
    Total noninterest expense     9,155       9,420     6,541
    Income before income taxes     8,213       5,609     4,011
    Income tax     2,983       2,018     1,471
    Net income     5,230       3,591     2,540
    Preferred stock dividend     32       32     -
      Net income applicable to common stock   $ 5,198     $ 3,559   $ 2,540
Earnings per common share:                    
Basic   $ 0.51     $ 0.35   $ 0.31
Diluted     0.49       0.34     0.30
Common shares used in the calculation of earnings per share:                    
Basic     10,231,070       10,100,763     8,239,334
Diluted     10,603,369       10,432,794     8,545,746
                     
 
 
Stonegate Bank and Subsidiaries
CONDENSED FINANCIAL HIGHLIGHTS
(in thousands of dollars)
     
    As of
    December 31, 2014   September 30,
2014
  December 31, 2013
BALANCE SHEET ITEMS:            
Assets   $1,723,444   $1,675,800   $1,119,934
Total loans   1,292,692   1,215,193   794,702
Deposits   1,452,194   1,410,488   935,477
Stockholders' equity   200,830   194,952   131,462
             
CAPITAL RATIOS:            
Total capital to risk weighted assets   14.4%   14.7%   16.5%
Tier 1 capital to risk weighted assets   13.1   13.5   15.3
Tier 1 capital to average assets   10.9   10.7   11.9
             
QUARTERLY AVERAGE BALANCE SHEET ITEMS:            
Assets   $1,706,003   $1,677,992   $1,110,926
Interest earning assets   1,555,343   1,524,347   1,005,708
Loans   1,278,430   1,218,116   785,054
Interest bearing liabilities   1,248,495   1,234,729   798,049
Deposits   1,438,572   1,416,488   913,925
Stockholders' equity   198,514   194,080   130,627
             
 
 
Stonegate Bank and Subsidiaries
CONDENSED FINANCIAL HIGHLIGHTS
(in thousands of dollars, except per share data)
 
    Three Months Ended
    December 31, 2014   September 30, 2014   December 31, 2013
FINANCIAL DATA:                  
Net interest income   $ 14,607   $ 13,927   $ 9,538
Net interest income - tax equivalent     14,813     14,112     9,695
Noninterest income     1,186     1,102     2,082
Noninterest expense     9,155     9,420     6,541
Income tax     2,983     2,018     1,471
Net income     5,230     3,591     2,540
Preferred stock dividend     32     32     -
Net income attributed to common shares     5,198     3,559     2,540
Weighted average number of common shares outstanding:                  
Basic     10,231,070     10,100,763     8,239,334
Diluted     10,603,369     10,432,794     8,545,746
Per common share data:                  
Basic   $ 0.51   $ 0.35   $ 0.31
Diluted     0.49     0.34     0.30
Cash dividend declared to common shares     410     408     330
                   

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 businesses. 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 are included as tables at the end of this release. Refer to press release supplemental table below for this reconciliation.

 
 
Reconciliation of GAAP to non-GAAP Measures
(in thousands of dollars)
           
    December 31, 2014     September 30, 2014
Interest income, as reported (GAAP)   $ 16,427     $ 15,740
Tax equivalents adjustments     206       185
Interest income (tax equivalent)   $ 16,633     $ 15,925
Net interest income, as reported (GAAP)   $ 14,607     $ 13,927
Tax equivalent adjustments     206       185
Net interest income (tax equivalent)   $ 14,813     $ 14,112
Net income GAAP   $ 5,230     $ 3,591
Non-interest expense adjustments:              
Provision for loan losses     (1,575 )      
Merger and acquisition related expenses     -       89
Professional expenses     126       213
Tax effect using the effective tax rate for the period presented     (526 )     109
Net operating income   $ 4,307     $ 3,784
               
Net operating income per common share   $ 0.42     $ 0.37
               

Contact Information

  • INVESTOR RELATIONS:
    Dave Seleski
    Email Contact
    Stonegate Bank
    (954) 315-5510