SOURCE: Stonegate Bank

Stonegate Bank

July 30, 2014 18:47 ET

Stonegate Bank Announces Second Quarter 2014 Operating Results

POMPANO BEACH, FL--(Marketwired - Jul 30, 2014) - Stonegate Bank (NASDAQ: SGBK) ("Stonegate") reported net income of $1,904 for the second quarter of 2014 or $0.17 per diluted common share ($0.37 per share net operating income, a non-GAAP measurement described below), as compared to the first quarter of 2014 earnings of $2,058 or $0.21 per diluted common share ($0.27 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 on page 13, Explanation of Certain Unaudited Non-GAAP Financial Measures.

Key highlights for the second quarter:

  • Loans: Total loans grew $31.2 million during the second quarter of 2014, or 9.0% on an annualized basis, to $1.2 billion at June 30, 2014. This loan growth was largely due to the origination of $136.5 million in loans during the second quarter. Approximately 35% of loan originations were in commercial real estate ("CRE"), 23% in construction and land development, 15% in residential mortgages, 14% in commercial and industrial ("C&I") and 13% were all other. The production for the current quarter was 49% fixed rate loans and 51% variable rate loans.

  • Asset Quality: Total loans past due 30 - 89 days, excluding nonaccrual loans, were $1.2 million at June 30, 2014, or 0.10% of total loans as compared to 0.11% at March 31, 2014. Nonaccrual loans were $7.5 million at June 30, 2014, or 0.62% of total loans, down from $8.3 million at March 31, 2014, or 0.70% of total loans.

  • Net Interest Income and Margin: Net interest income, on a tax equivalent basis, increased $1.0 million for the three months ended June 30, 2014 as compared to the three months ended March 31, 2014. Net interest income totaled $13.9 million for the three months ended June 30, 2014. The second quarter 2014 net interest margin, on a tax equivalent basis, increased 5 basis points to 3.61% from 3.56% on a tax equivalent basis for the first quarter 2014. The slight increase in the margin is primarily a result of a higher yield earned on the Bank's interest bearing deposits at other banks.

  • Non-Interest Expense: Non-interest expense increased from $10.4 million for the first three months of 2014 to $12.4 million for the three months ended June 30, 2014. This increase was primarily due to the one-time costs associated with the conversion of Florida Shores Bancorp, Inc. and Subsidiaries (collectively, "Florida Shores") and related branch closure expenses. One-time costs were approximately $2.4 million for the three months ended June 30, 2014.

  • Capital: The Bank remained well-capitalized with capital of $191.2 million as of June 30, 2014. The Bank's total risk-based capital ratio was 14.8%, the Bank's Tier 1 capital ratio was 13.5% and the Bank's leverage capital ratio was 10.4%.

Loans and Deposits

Loans outstanding at June 30, 2014 were $1.21 billion as compared to $1.18 billion at March 31, 2014 an increase of $31.2 million during the second 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 area of South and West Florida. The table below shows the loan portfolio composition:

         
(in thousands of dollars)   June 30, 2014   March 31, 2014
             
Commercial   $ 180,243   $ 178,286
Commercial real estate     651,994     657,852
Construction and land development     100,193     82,941
Residential real estate     259,658     258,382
Consumer and other loans     31,136     14,577
  Total loans     1,223,224     1,192,038
Less: discount on loans acquired     9,895     10,123
Net deferred fees     1,388     1,197
Recorded investment in loans     1,211,941     1,180,718
Less: Allowance for loan losses     18,296     17,983
  Net loans   $ 1,193,645   $ 1,162,735
             

Construction and land development loans grew $17.3 million during the second quarter of 2014. This net increase was due to new loan originations, primarily comprised of construction for residential properties and one loan for student housing at a local university.

Deposits at June 30, 2014 and March 31, 2014 were $1.41 billion and $1.47 billion, a decrease of $60 million. Noninterest-bearing deposits were $233.9 million at June 30, 2014 as compared to $261.1 million at March 31, 2014, a decline of $27.2 million. This was primarily a result of a reduction related to two accounts. The deposit balance in one account was dispersed due to a sale of the business and the deposit balance in the other account, which was an account for an estate, was reduced due to a distribution. Money market deposits declined approximately $18.7 million from March 31, 2014 to June 30, 2014. Approximately 60% of the decline in money market deposits was a planned outflow of a non-core deposit associated with the Florida Shores acquisitions. During the second quarter the Bank experienced $10.0 million in runoff of certificates of deposit held by the Florida Shores entities that were priced above market.

The following table shows the composition of deposits as of June 30, 2014 and March 31, 2014:

         
(in thousands of dollars)   June 30, 2014   March 31, 2014
             
Noninterest bearing   $ 233,928   $ 261,094
NOW     209,100     212,502
Money market     767,877     786,596
Savings     12,591     13,042
Certificates of deposit     190,346     200,731
  Total deposits   $ 1,413,842   $ 1,473,965
             

Credit Quality and Allowance for Loan Losses

As of June 30, 2014, the Bank's past due and nonaccrual loans totaled $8.7 million and were 0.07% of total loans as compared $9.7 million or 0.82% at March 31, 2014 and $9.4 million or 1.25% at June 30, 2013. Loans past due 30-89 days were $1.2 million versus $1.4 million at March 31, 2014, a decrease of $200,000. Legacy loans past due total $500,000 or approximately 40% of the total loans past due. Nonaccrual loans stood at $7.5 million at June 30, 2014, a decrease of $800,000 from $8.3 million at March 31, 2014. This decrease was a result of a $1.2 million loan which was returned to accrual status during the second quarter of 2014. Legacy loans represent approximately 25% or $1.9 million of the total nonaccrual loans at June 30, 2014. Commercial real estate loans are $4.6 million or 61% of the nonaccrual loans. The Bank does not have any loans past due 90 days or more that are still accruing. As of June 30, 2014, there remains approximately $11.1 million in nonaccretable discounts on loans acquired. The Bank does not have any loans under which it participates in a loss share arrangement.

Other real estate owned declined from $1.4 million as of March 31 2014, to $650,000 as of June 30, 2014. Other real estate owned is comprised of four properties, with one property of approximately $500,000 under contract for sale.

The following outlines nonperforming assets for the periods ended:

             
(in thousands of dollars)   June 30,
 2014
    March 31,
2014
 
                 
Nonaccrual   $ 7,526     $ 8,336  
Other real estate owned     654       1,461  
  Total nonperforming assets   $ 8,180     $ 9,797  
                 
Nonperforming loans as a percentage of total loans     0.06 %     0.07 %
Nonperforming assets as a percentage of total assets     0.05 %     0.06 %
                 
Past due 90 or more days and still accruing   $ -     $ -  
                 

Loans modified as troubled debt restructuring were $13.9 million and $14.0 million at June 30, 2014 and March 31, 2014, respectively. Loans classified as troubled debt restructuring and on nonaccrual totaled $1.9 million and $800,000 as of June 30, 2014 and March 31, 2014, respectively. There were no loans modified as troubled debt restructuring during the second quarter of 2014. The specific reserves of $1.3 million allocated to loans modified as troubled debt restructuring remained unchanged from March 31, 2014.

The allowance for loan losses was $18.3 million at June 30, 2014, an increase of $300,000 from March 31, 2014. The allowance for loan losses represents 1.51% and 1.52% of total loans as of June 30, 2014 and March 31, 2014, respectively. Additionally, as of June 30, 2014, the allowance represents 2.11% of total legacy loans. During the second quarter of 2014 the Bank recorded no provision for loan loss expense, no loan charge-offs and recoveries of $300,000. The general loan loss reserve (non-impaired loans) increased $400,000 during the second quarter while specific reserves remained unchanged at $1.5 million.

The following table shows the activity in the allowance for loan losses for the three months ended:

                 
(in thousands of dollars)   June 30,
2014
  March 31,
2014
    June 30,
2013
 
                       
Balance At Beginning Of Period   $ 17,983   $ 17,307     $ 16,149  
Charge-Offs     -     (79 )     (549 )
Recoveries     313     230       201  
Provision For Loan Losses     -     525       723  
Balance At End Of Period   $ 18,296   $ 17,983     $ 16,524  
                       

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)
  June 30,
2014
    March 31,
2014
  June 30,
2013
    Amount     %     Amount   %   Amount   %
Commercial   $ 1,896     10.3     $ 1,919   10.7     1,629   9.9
Commercial real estate     12,058     65.9       11,963   66.5     11,222   67.9
Construction and land development     1,844     10.1       1,683   9.3     1,421   8.6
Residential real estate     2,393     13.1       2,286   12.7     2,020   12.2
Consumer and other loans     128     0.7       69   0.4     62   .0.4
Unallocated     (23 )   (0.1 )     63   0.4     170   1.0
  Total   $ 18,296     100.0     $ 17,983   100.0   $ 16,524   100.0
                                     

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

             
(in thousands of dollars)   June 30,
2014
  March 31,
2014
  June 30,
2013
                   
Impaired loans without a valuation allowance   $ 8,150   $ 12,559   $ 9,801
Impaired loans with a valuation allowance     10,414     6,309     9,130
Total impaired loans   $ 18,564   $ 18,868   $ 18,931
                   
Valuation allowance related to impaired loans   $ 1,495   $ 1,516   $ 2,300
                   

Net Interest Income and Margin
On a tax equivalent basis the Bank's net interest income for the three months ended June 30, 2014 was $14.0 million which was an increase of $1.0 million from the first quarter of 2014 and an increase of $4.8 million from the second quarter 2013. The increase from the first quarter of 2014 was a result of net loan growth while the increase over the second quarter of 2013 was due primarily to an increase in loans of $346 million from the Florida Shores acquisitions and organic growth. Average loans for the second quarter of 2014 were $1.19 billion as compared to $1.11 billion for the first quarter of 2014 and $726 million for the second quarter of 2013. The increase in deposits with interest at banks from June 2013 is primarily a result of the cash received with the Florida Shores acquisitions and the subsequent liquidation of the majority of their investment portfolio.

The net interest margin on a tax equivalent basis was 3.61% for the second quarter 2014 as compared to 3.56% for the first quarter 2014 and 3.71% for the second quarter of 2013. This represented an increase of 5 basis points from the first quarter of 2014 and a decrease of 10 basis points from the second quarter 2013. The yield on interest earning assets was 4.09% for the second quarter of 2014 versus 4.04% for the first quarter of 2014 and was primarily due to the increase in average loans outstanding during the second quarter. The yield on loans remained unchanged at 5.14% from the prior quarter however it was lower by 57 basis points from the second quarter of 2013. This was a result of new loans pricing at a lower rate over the 12 month period. The average yield on paying liabilities remained unchanged from the first quarter of 2014 at 0.60% but declined from 0.89% from the second quarter of 2013. The decline from the second 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 acquisitions. The Bank's cost of funds has declined from 0.76% for the June 2013 month-to-date average to 0.50% for the June 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)  
   
    2Q14     1Q14     2Q13  
    Average Balance   Interest   Rate     Average Balance   Interest   Rate     Average Balance   Interest   Rate  
ASSETS                                                      
Loans, Net(1)(2)(4)   $ 1,194,718   $ 15,321   5.14 %   $ 1,113,953   $ 14,116   5.14 %   $ 725,513   $ 10,325   5.71 %
Investment Securities     85,103     302   1.42       84,976     377   1.80       99,277     460   1,86  
Federal Funds Sold     16,268     19   0.47       10,589     5   0.19       5,934     4   0.27  
Other Investments(3)     2,422     25   4.14       2,543     25   3.99       2,039     12   2.36  
Deposits with interest at banks     256,813     183   0.29       259,506     150   0.23       151,831     94   0.25  
Total Earning Assets     1,555,324     15,850   4.09 %     1,471,567   $ 14,673   4.04 %     984,594   $ 10,895   4.44 %
                                                       
                                                       
LIABILITIES                                                      
Savings, NOW and Money Market   $ 1,011,515   $ 1350   0.54 %   $ 962,317   $ 1,270   0.54 %   $ 632.275   $ 1,283   0.81 %
Time Deposits     196,534     320   0.63       193,769     303   0.63       116,370     272   0.94  
Total Interest Bearing Deposits     1,208,049     1,670   0.55       1,156,086     1,573   0.55       748,645     1,554   0.83  
Other Borrowings     39,269     193   1.97       39,307     191   1.97       59,468     232   1.56  
Total Interest Bearing Liabilities     1,247,318     1,863   0.60 %     1,195,393     1,764   0.60 %     808,113     1,786   0.89 %
                                                       
Net interest spread (tax equivalent basis) (note 4)               3.49 %               3.44 %               3.55 %
Net interest margin (tax equivalent basis) (note5)               3.61 %               3.56 %               3.71 %
     
(1)   Average balances include nonaccrual loans, and are net of unearned loan fees of $1,388, $1,197 and $925 for 2Q14, 1Q14 and 2Q13, respectively.
(2)   Interest income includes fees on loans of $99, $60 and $14 for 2Q14, 1Q14 and 2Q13, respectively.
(3)   "Other investments" consists of equity stock in the FHLB of Atlanta that the Bank 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 for the quarter ended June 30, 2014 was $1.1 million as compared to $1.4 million for the first quarter of 2014 and $900,000 for the second quarter of 2013. The decrease of the second quarter of 2014 over the first quarter was primarily due to a settlement payment of $210,000 related to a charged off loan acquired as such through an FDIC assisted transaction received in the first quarter. The difference of $200,000 for the second quarter of 2014 when compared to the second quarter of 2013 is primarily due to fees received during the second quarter of 2013 in connection with interest rate swaps entered into with certain loan customers.

Non-interest Expense

Noninterest expense for the three months ended June 30, 2014 was $12.4 million versus $10.4 million for the three months ended March 31, 2014 and $5.7 million for the three months ended June 30, 2013. During the second quarter of 2014 the Bank incurred one-time merger and conversion costs of $1.4 million, costs of $810,000 associated with branch closings and $180,000 in connection with listing the Bank's common stock for trading on the Nasdaq Stock Market. During the first quarter of 2014 there were expenses of approximately $775,000 related to the acquisition of Florida Shores which closed on January 15, 2014, while the data conversion occurred in late April 2014.

Salaries and employee benefits were $5.7 million for the second quarter of 2014 and included approximately $360,000 in payments to employees associated with the Florida Shores acquisition and conversion. For the three months ended March 31, 2014 salaries and employee benefits were $6.0 million and were $3.4 million for the three months ended June 30, 2013. The increase over June 30, 2013 is primarily the additional staff, both retained permanently and those released at conversion, from the Florida Shores acquisition.

Occupancy and equipment expenses were $2.5 million, $1.6 million and $946,000 for the three months ended June 30, 2014, March 31, 2014 and June 30, 2013, respectively. A one-time expense for branch closures was approximately $810,000 during the second quarter of 2014. The expense of the additional branches associated with the Florida Shores acquisition is the reason for the increase in occupancy and equipment expense compared to the second quarter of 2013.

Data processing expenses were $1.4 million for the three months ended June 30, 2014 and included one-time core system termination fees and conversion costs of approximately $1.0 million related to the Florida Shores acquisition. Additionally, included in both the results of operations for the first and second quarters were costs for data processing for the Florida Shores entities which will not be recurring.

Professional fees were $725,000 for the three months ended June 30, 2014 as compared to $678,000 for the three months ended March 31, 2014 and $422,000 for the three months ended June 30, 2013. 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 as compared to $72,000 for the first quarter of 2014.

The table below outlines the expenses for the quarters ended:

             
    June 30, 2014   March 31, 2014   June 30, 2013
(in thousands of dollars)                  
                   
Salaries and employee benefits   $ 5,706   $ 6,013   $ 3,381
Occupancy and equipment expense     2,484     1,588     946
FDIC insurance and state assessments     327     230     203
Data processing     1,430     503     20
Loan and other real estate expense     127     150     145
Professional fees     725     678     422
Core deposit intangible amortization     327     284     62
Other operating expenses     1,271     945     524
Totals   $ 12,397   $ 10,391   $ 5,703
                   
                   

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 14 banking offices in its target marketplace of South and West Florida, which is 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.

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, 2014     December 31, 2013  
Assets                
Cash and due from banks   $ 261,616     $ 190,226  
Federal funds sold     20,000       10,000  
Securities held to maturity (Fair value of $85,699 at June 30, 2014 and $71,781 at December 31, 2013)     84,265       71,639  
Other investments     2,422       2,039  
Loans, net of allowance for loan losses of $18,296 and $17,307 at June 30, 2014 and December 31, 2013, respectively     1,193,645       794,702  
Premises and equipment, net     26,527       12,310  
Bank-owned life insurance     17,558       17,339  
Goodwill and intangible assets, net     18,680       1,101  
Other real estate owned     654       2,120  
Other assets     31,490       18,458  
    Total assets   $ 1,656,857     $ 1,119,934  
                 
Liabilities and Stockholders' Equity                
Liabilities                
  Total deposits   $ 1,413,842     $ 935,477  
  Other borrowings     38,859       42,733  
  Other liabilities     12,982       10,262  
    Total liabilities     1,465,683       988,472  
                 
Stockholders' Equity                
  Preferred stock, $5 par value, 4,000,000 shares authorized;12,750 outstanding as of June 30, 2014 and none outstanding as of December 31, 2013     12,750       -  
  Common stock, $5 par value, 20,000,000 shares authorized; 10,070,963 issued and 10,167,305 shares outstanding as of June 30, 2014 and 8,241,992 shares issued and 8,239,334 outstanding as of December 31, 2013     50,850       41,210  
  Additional paid-in capital     86,800       52,810  
  Retained earnings     42,703       39,614  
  Treasury Stock     (13 )     (13 )
  Accumulated other comprehensive income     (1,916 )     (2,159 )
    Total stockholders' equity     191,174       131,462  
    Total liabilities and stockholders' equity   $ 1,656,857     $ 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
    June 30,
2014
  March, 31,
2014
  June 30,
2013
Interest income:                  
  Interest and fees on loans   $ 15,190   $ 14,026   $ 10,289
  Interest on securities     302     377     460
  Interest on federal funds sold and at other banks     202     155     98
  Other interest     25     25     12
    Total interest income     15,719     14,583     10,859
                   
Interest expense:                  
  Interest on deposits     1,670     1,573     1,554
  Other interest     193     191     232
    Total interest expense     1,863     1,764     1,786
    Net interest income     13,856     12,819     9,073
  Provision for loan losses     -     525     723
      Net interest income after provision for loan losses     13,856     12,294     8,350
                   
Noninterest income:                  
    Service charges and fees on deposit accounts     292     275     232
  Realized gains on available for sale securities     -     -     160
  Other noninterest income     771     1,094     512
    Total noninterest income     1,063     1,369     904
Noninterest expense:                  
  Salaries and employee benefits     5,706     6,013     3,381
  Occupancy and equipment expenses     2,484     1,588     946
  Data processing     1,430     503     20
  Professional fees     725     678     422
  Core deposit intangible amortization     327     284     62
  Other operating expenses     1,725     1,325     872
    Total noninterest expense     12,397     10,391     5,703
    Income before income taxes     2,522     3,272     3,551
    Income tax     618     1,214     1,286
    Net income     1,904     2,058     2,265
    Preferred stock dividend     64     -     -
      Net income applicable to common stock   $ 1,840   $ 2,058   $ 2,265
Earnings per common share:                  
Basic   $ 0.18   $ 0.28   $ 0.28
Diluted     0.17     0.27     0,27
Common shares used in the calculation of earnings per share:                  
Basic     10,202,975     9,763,477     8,239,334
Diluted     10,526,445     10,035,317     8,434,551
                   
                   
   
   
Stonegate Bank and Subsidiaries  
CONDENSED FINANCIAL HIGHLIGHTS  
(in thousands of dollars)  
    As of  
    June 30, 2014     March 31, 2014     June 30, 2013  
BALANCE SHEET ITEMS:                        
Assets   $ 1,656,857     $ 1,170,787     $ 1,094,624  
Total loans     1,193,645       1,162,735       731.726  
Deposits     1,413,842       1,473,752       896,738  
Stockholders' equity     191,174       187,901       127,149  
                         
CAPITAL RATIOS:                        
Total capital to risk weighted assets     14.8 %     14.9 %     17.0 %
Tier 1 capital to risk weighted assets     13.5       13.6       15.7  
Tier 1 capital to average assets     10.4       10.7       11.8  
                         
AVERAGE BALANCE SHEET ITEMS:                        
Assets   $ 1,690,678     $ 1,618,398     $ 1,086,768  
Interest earning assets     1,555,324       1,471,567       984,594  
Loans     1,194,718       1,113,953       709,227  
Interest bearing liabilities     1,247,318       1,195,393       808,113  
Deposits     1,450,124       1,388,110       882,899  
Stockholders' equity     189,706       179,352       129,045  
                         
                         
 
 
Stonegate Bank and Subsidiaries
CONDENSED FINANCIAL HIGHLIGHTS
(in thousands of dollars, except per share data)
 
    Three Months Ended
    June 30, 2014   March 31, 2014   June 30, 2013
FINANCIAL DATA:                  
Net interest income   $ 13,856   $ 12,819   $ 9,073
Net interest income - tax equivalent     13,897     12,909     9,109
Noninterest income     1,063     1,369     904
Noninterest expense     12,397     10,391     5,703
Income tax     618     1,214     1,286
Net income     1,904     2,058     2,265
Preferred stock dividend     60     -     -
Net income attributed to common shares     1,840     2,058     2,265
Weighted average number of common shares outstanding:                  
Basic     10,202,975     9,763,477     8,239,334
Diluted     10,485,695     10,035,317     8,434,551
Per common share data:                  
Basic   $ 0.18   $ 0.21   $ 0.28
Diluted     0.17     0.21     0.27
Cash dividend declared to common shares     406     398     330
                   
                   

Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with GAAP. The Company's management uses these non-GAAP financial measures in their analysis of the Company'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 the Company'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 the Company'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 for this reconciliation.

 
 
Reconciliation of GAAP to non-GAAP Measures
(in thousands of dollars)
 
    June 30, 2014   March 31, 2014
Interest income, as reported (GAAP)   $ 15,719   $ 14,583
Tax equivalents adjustments     131     90
Interest income (tax equivalent)   $ 15,850   $ 14,673
Net interest income, as reported (GAAP)   $ 13,856   $ 12,294
Tax equivalent adjustments     131     90
Net interest income (tax equivalent)   $ 13,987   $ 12,384
Net income GAAP   $ 1,904   $ 2,058
Non-interest expense adjustments:            
Merger and acquisition related expenses     1,426     775
Branch closure expenses     810     -
Professional expenses     180     72
Tax effect using the effective tax rate for the period presented     592     324
Net operating income   $ 3,728   $ 2,591
             
Net operating income per common share   $ 0.37   $ 0.27
             
             

Contact Information

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