SOURCE: Stonegate Bank

Stonegate Bank

July 26, 2016 17:00 ET

Stonegate Bank Announces Second Quarter 2016 Operating Results

POMPANO BEACH, FL--(Marketwired - Jul 26, 2016) - Stonegate Bank (NASDAQ: SGBK) ("Stonegate") reported net income of $6.7 million for the second quarter of 2016 or $0.51 per diluted common share ($0.54 per common share net operating income, a non-GAAP measurement described below), as compared to net income of $6.7 million for the first quarter of 2016 or $0.51 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 items determined by management to be unrelated to Stonegate's normal business operations, 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 second quarter:

  • Loans: Total loans, net of discounts and deferred fees, grew $78.0 million during the second quarter of 2016 to $1.96 billion at June 30, 2016, a result of net organic loan growth during the quarter. Commercial real estate ("CRE") comprised 39% of new loan originations for the first quarter of 2016, based upon the outstanding balance as of June 30, 2016. Commercial and industrial ("C&I") accounted for 29% of the new loan originations; 13% of the new originations were construction; residential loans were 11% of new originations with the remaining balance in consumer and other loans. The loan production for the second quarter was comprised of 54% variable rate loans. Approximately 43% of the variable rate loans originated in the second quarter were tied to LIBOR. On an annualized basis, organic loan growth was approximately 11.5%.

  • Asset Quality: Total loans past due, excluding nonaccrual loans, were $2.8 million at June 30, 2016, an increase of $2.4 million from March 31, 2016. Nonaccrual loans were $4.1 million at June 30, 2016, or 0.21% of total loans, a decrease from $4.9 million at March 31, 2016, or 0.26% of total loans. Other real estate owned was $613,000 at June 30, 2016, an increase of $52,000 from March 31, 2016. 

  • Net Interest Income and Margin: Net interest income, on a tax equivalent basis, increased $942,000 for the three months ended June 30, 2016 as compared to the three months ended March 31, 2016. Net interest income totaled $22.0 million for the three months ended June 30, 2016. The net interest margin, on a tax-equivalent basis, increased to 3.97% for the second quarter of 2016 as compared to 3.92% for the first quarter of 2016 and a decrease over the net interest margin of 4.31% for the quarter ended June 30, 2015. The increase in the margin from the first quarter of 2016 to the second quarter of 2016 was primarily a result of an increase in the amount of nonaccretable discounts that were recognized during the second quarter.

  • Noninterest Expense: Noninterest expense increased slightly to $12.8 million for the three months ended June 30, 2016 from $12.5 million for the three months ended March 31, 2016. 

  • Capital: Stonegate remained well-capitalized as of June 30, 2016 with capital of $297.0 million as compared to $289.5 million at March 31, 2016. As of June 30, 2016, Stonegate's total risk-based capital ratio was 12.0%; Stonegate's Tier 1 and Common Equity Tier 1 capital ratios were each 11.1%; and Stonegate's leverage capital ratio was 10.4%. 

Loans and Deposits

Loans outstanding at June 30, 2016 were $1.96 billion as compared to $1.89 billion at March 31, 2016, an increase of $78.0 million during the second 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)   June 30, 2016   March 31, 2016
             
Commercial   $ 250,665   $ 222,607
Commercial real estate - owner occupied     465,917     501,201
Commercial real estate - other     604,399     553,152
Construction and land development     217,180     188,723
Residential real estate     331,520     332,274
Consumer and other loans     107,010     101,614
  Total loans     1,976,691     1,899,571
Less: discount on loans acquired     9,204     10,421
Less: net deferred fees     3,375     3,004
Recorded investment in loans     1,964,112     1,886,146
Less: Allowance for loan losses     18,595     18,494
  Net loans   $ 1,945,517   $ 1,867,652
               

New loan originations were $221.4 million during the second quarter of 2016, with fundings of $133.5 million. As of June 30, 2016, outstanding commitments were approximately $422.8 million with approximately $142.9 million representing new approved loan originations and approximately $155.0 million in unfunded construction commitments.

Deposits decreased to $2.03 billion at June 30, 2016 from $2.09 billion at March 31, 2016. Noninterest-bearing deposits were $424.7 million at June 30, 2016, an increase from $423.9 million at March 31, 2016, and represented approximately 20.9% of total deposits. NOW accounts at June 30, 2016 decreased $38.4 million from March 31, 2016 due primarily to an anticipated closing of one account with an average balance of approximately $31.0 million. Money market accounts decreased $12.2 million to $1.09 billion at June 30, 2016, from $1.11 billion at March 31, 2016. Approximately $10.0 million of the decrease in money market accounts was due to withdrawals by one customer. Time deposits decreased approximately $5.5 million during the second quarter of 2016.

The following table shows the composition of deposits as of June 30, 2016 and March 31, 2016:

         
(in thousands of dollars)   June 30, 2016   March 31, 2016
             
Noninterest bearing   $ 424,706   $ 423,930
NOW     275,701     314,052
Money market     1,094,766     1,107,028
Savings     94,690     94,739
Certificates of deposit     144,349     149,851
  Total deposits   $ 2,034,212   $ 2,089,600
             

Credit Quality and Allowance for Loan Losses

Loans past due 30-89 days were $2.62 million at June 30, 2016, an increase from $454,000 at March 31, 2016. The increase in past due loans was primarily due to one loan for $1.48 million which became past due during the second quarter. Loans past due 90 days or more and still accruing were $218,000 at June 30, 2016. This represents one loan which was in the process of being renewed at quarter end. Legacy loans (i.e., loans made by Stonegate and not acquired by acquisition or otherwise) which were past due loans at June 30 2016, totaled $1.7 million, or 59%, of total loans past due. Nonaccrual loans stood at $4.1 million at June 30, 2016, a decrease from $4.9 million at March 31, 2016. This decrease was largely due to the transfer of two loans with an aggregate balance of $639,000 to OREO. Legacy nonaccrual loans were approximately $1.5 million at June 30, 2016 versus $2.1 million as of March 31, 2016. Residential loans classified as nonaccrual were $1.8 million or 43.1% of the nonaccrual loans and commercial real estate loans classified as nonaccrual were $1.3 million or 28.9% of the nonaccrual as of June 30, 2016. At June 30, 2016, there remained approximately $7.0 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 $4.7 million as of June 30, 2016, a decrease of $5.5 million from March 31, 2016. Other real estate owned increased slightly to $613,000 as of June 30, 2016 as compared to $561,000 as of March 31, 2016. The increase was the net of the transfer of two properties to OREO and the sale of two properties during the quarter. One of the properties that was sold during the second quarter was also transferred to OREO during the second quarter.

The following table outlines nonperforming assets for the periods ended:

             
(in thousands of dollars)   June 30,
 2016
    March 31,
 2016
 
                 
Nonaccrual   $ 4,100     $ 4,922  
Other real estate owned     613       561  
  Total nonperforming assets   $ 4,713     $ 5,483  
                 
Nonperforming loans as a percentage of total loans     0.21 %     0.26 %
Nonperforming assets as a percentage of total assets     0.20 %     0.22 %
                 

Loans modified as troubled debt restructuring were $8.7 million and $9.1 million at June 30, 2016 and March 31, 2016, respectively. There were no loans classified as troubled debt restructuring and on nonaccrual status at June 30, 2016 versus $450,000 as of March 31, 2016. There were no loans modified as troubled debt restructuring during the second quarter of 2016. There was one loan for $438,000 transferred to OREO and one loan for $12,000 which was paid off during the second quarter. Specific reserves allocated to loans modified as troubled debt restructuring decreased to $67,000 at June 30, 2016, from $160,000 at March 31, 2016.

At June 30, 2016, the allowance for loan losses was $18.6 million, an increase of $101,000 from March 31, 2016. During the second quarter of 2016 recoveries totaled $165,000 and charge-offs were $64,000. Specific reserves decreased to $611,000 at June 30, 2016 from $744,000 at March 31, 2016. The allowance for loan losses represented 0.95% of total loans as of June 30, 2016 and 0.98% as of March 31, 2016. Additionally, the allowance represented 1.23% of total legacy loans as of June 30, 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)   June 30,
2016
    March 31,
2016
 
                 
Balance at beginning of period   $ 18,494     $ 18,149  
Charge-offs     (64 )     (8 )
Recoveries     165       160  
Provision for loan losses     -       193  
Balance at end of period   $ 18,595     $ 18,494  
                 

The table below reflects the allowance allocation per loan category and percent of loans in each category to total loans for the periods indicated:

         
    June 30,
2016
  March 31,
2016
(in thousands of dollars)  
    Amount   %   Amount   %
Commercial   $ 2,584   13.9   $ 2,505   13.5
Commercial real estate   11,618   62.5   12,009   64.9
Construction and land development   1,964   10.6   1,586   8.6
Residential real estate   1,978   10.6   1,971   10.7
Consumer and other loans   451   2.4   423   2.3
  Total   $ 18,595   100.0   $ 18,494   100.0
                 

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

             
(in thousands of dollars)   June 30,
2016
  March 31,
2016
  June 30,
2015
                   
Impaired loans without a valuation allowance   $ 6,609   $ 6,869   $ 6,785
Impaired loans with a valuation allowance     5,644     6,489     7,990
Total impaired loans   $ 12,253   $ 13,358   $ 14,775
                   
Valuation allowance related to impaired loans   $ 611   $ 744   $ 894
                   

Net Interest Income and Margin

On a tax-equivalent basis Stonegate's net interest income for the three months ended June 30, 2016 was $22.0 million, an increase of approximately $942,000 from the first quarter of 2016 and an increase of $70,000 from the second quarter 2015. Average earning assets grew $65.1 million from the first quarter of 2016 to the second quarter of 2016, primarily a result of net organic growth in loans and deposits with interest at banks. The yield on loans increased from 4.89% for the first quarter of 2016 to 5.00% for the second quarter of 2016, but decreased from the 5.36% yield for the second quarter of 2015. The increase in the loan yield in the second quarter was due to an increase in nonaccretable discounts recognized over the first quarter of 2016. 

The net interest margin on a tax-equivalent basis increased from 3.92% for the first quarter of 2015 to 3.97% for the second quarter of 2016. The net interest margin was 4.31% for the second quarter of 2015. The average yield on total earning assets was 4.42% for the second quarter of 2016 versus 4.36% for the first quarter of 2016. The average yield on paying liabilities increased two basis points from 0.57% from the first quarter of 2016 to 0.59% for the second quarter of 2016. Stonegate's cost of funds has increased from 0.41% for the June 2015 month-to-date average to 0.48% for the June 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)
    2nd Quarter 2016     1st Quarter 2016     2nd Quarter 2015  
    Average Balance   Interest   Rate     Average Balance   Interest   Rate     Average Balance   Interest   Rate  
ASSETS                                                      
Loans, Net(1)(2)(4)   $ 1,909,961   $ 23,754   5.00 %   $ 1,870,153   $ 22,729   4.89 %   $ 1,740,670   $ 23,281   5.36 %
Investment Securities     109,352     441   1.62       108,691     449   1.66       107,226     420   1.57  
Federal Funds Sold     30,000     53   0.71       30,000     54   0.72       20,000     15   0.30  
Other Investments(3)     3,049     35   4.62       2,912     34   4.70       2,895     30   4.16  
Deposits with interest at banks     178,622     233   0.52       154,087     221   0.58       174,466     141   0.32  
Total Earning Assets     2,230,984     24,516   4.42 %     2,165,843     23,487   4.36 %     2,045,257     23,887   4.68 %
                                                       
                                                       
LIABILITIES                                                      
Savings, NOW and Money Market   $ 1,486,766   $ 2,067   0.56 %   $ 1,479,261   $ 1,969   0.54 %   $ 1,332,580     1,596   0.48 %
Time Deposits     147,830     206   0.56       161,401     215   0.54       209,209     113   0.22  
Total Interest Bearing Deposits     1,634,596     2,273   0.56       1,640,662     2,184   0.54       1,541,789     1,709   0.44  
Other Borrowings     57,767     215   1.50       58,801     217   1.48       61,550     220   1.43  
Total Interest Bearing Liabilities     1,692,363     2,488   0.59 %     1,699,463     2,401   0.57 %     1,603,339     1,929   0.48 %
                                                       
Net interest spread (tax equivalent basis) (4)               3.83 %               3.79 %               4.20 %
Net interest margin (tax equivalent basis) (5)               3.97 %               3.92 %               4.31 %
     
(1)   Average balances include nonaccrual loans, and are net of unearned loan fees of $3,101, $3,005 and $2,493 for 2nd Quarter 2016, 1st Quarter 2016 and 2nd Quarter 2015, respectively.
(2)   Interest income includes fees on loans of $32, $47 and $85 for 2nd Quarter 2016, 1st Quarter 2016 and 2nd 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 $1.7 million for the second quarter of 2016 declined from $2.3 million for the quarter ended March 31, 2016. During the first quarter of 2016 Stonegate recognized income of $258,000 from the receipt of death benefits for Bank Owned Life Insurance. Additionally, interest rate swap fees declined approximately $109,000 from the first quarter of 2016 to the second quarter of 2016.

Noninterest Expense

Noninterest expense for the three months ended June 30, 2016 increased slightly to $12.8 million from $12.5 million at March 31, 2016, and was less than the $13.3 million for the three months ended June 30, 2015. 

Salaries and employee benefits decreased to $6.9 million for the second quarter of 2016 versus $7.1 million for the first quarter of 2016. This compares with $6.8 million for the three months ended June 30, 2015. 

Occupancy and equipment expenses remained unchanged at $2.1 million for the three months ended June 30, 2016 and March 31, 2106. Occupancy and equipment expenses were $2.4 million for the three months June 30, 2015. Expenses for merger-related branch closures were approximately $228,000 during the second quarter of 2015.

Data processing expenses were $447,000 and $452,000 for the second and first quarter of 2016, respectively. This compares to $1.1 million for the quarter ended June 30, 2015 which included $625,000 in data conversion and termination costs. Professional fees for the three months ended June 30, 2016 were $954,000. This compared to professional fees of $604,000 for the three months ended March 31, 2016 and $657,000 for the three months ended June 30, 2015. During the second quarter of 2016 there was $334,000 in legal and other professional fees for merger-related expenses as compared to $114,000 in the first quarter of 2016. There were no merger-related legal or professional fees during the second quarter of 2015.

The table below outlines the expenses for the quarters ended:

             
    June 30, 2016   March 31, 2016   June 30, 2015
(in thousands of dollars)                  
                   
Salaries and employee benefits   $ 6,907   $ 7,097   $ 6,792
Occupancy and equipment expense     2,158     2,113     2,416
FDIC insurance and state assessments     284     383     379
Data processing     447     452     1,117
Loan and other real estate expense     102     154     153
Professional fees     954     604     657
Core deposit intangible amortization     408     414     448
Other operating expenses     1,540     1,319     1,342
Totals   $ 12,800   $ 12,536   $ 13,304
                   

During the second quarter of 2016, Stonegate announced that it had become a credit card issuer. Expenses associated with rolling out this new product line were approximately $115,000 in the second quarter of 2016 and total approximately $160,000 for the year. Looking forward to the third quarter of 2016, Stonegate anticipates additional costs associated with this rollout of credit cards and the Regent Bank acquisition. Additionally, Stonegate's Hallandale and Hollywood offices will be consolidated during the third quarter of 2016.

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, July 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 50163014. Participants will be asked for their First Name, Last Name and Company Name. An audio replay of the conference call will be available until August 10, 2016, and may be accessed telephonically at 1-855-859-2056 using Conference ID# 50163014. 

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 July 15, 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)  
   
    June 30, 2016     December 31, 2015  
Assets                
Cash and due from banks   $ 170,598     $ 257,934  
Federal funds sold     30,000       30,000  
Securities held to maturity (Fair value of $111,213 at June 30, 2016 and $107,659 at December 31, 2015)     108,139       106,619  
Other investments     3,049       2,895  
Loans, net of allowance for loan losses of $18,595 at June 30, 2016 and $18,149 at December 31, 2015     1,945,517       1,839,421  
Premises and equipment, net     25,091       25,769  
Bank-owned life insurance     31,111       29,776  
Other real estate owned     613       1,390  
Other assets     90,021       86,634  
    Total assets   $ 2,404,139     $ 2,380,438  
                 
Liabilities and Stockholders' Equity                
Liabilities                
  Total deposits   $ 2,034,212     $ 2,024,367  
  Other borrowings     55,819       58,638  
  Other liabilities     17,147       14,869  
    Total liabilities     2,107,178       2,097,874  
                 
Stockholders' Equity                
  Senior non-cumulative preferred stock; no shares issued and outstanding as of June 30, 2016 and December 31, 2015     -       -  
  Common stock, $5 par value, 20,000,000 shares authorized; 12,865,702 issued and 12,863,044 shares outstanding as of June 30, 2016 and 12,752,402 shares issued and 12,749,744 outstanding as of December 31, 2015     64,328       63,762  
  Additional paid-in capital     149,299       146,994  
  Retained earnings     84,537       73,205  
  Treasury Stock     (13 )     (13 )
  Accumulated other comprehensive income (loss)     (1,190 )     (1,384 )
    Total stockholders' equity     296,961       282,564  
    Total liabilities and stockholders' equity   $ 2,404,139     $ 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
    June 30,
2016
  March 31,
2016
  June 30,
2015
Interest income:                  
  Interest and fees on loans   $ 23,314   $ 22,280   $ 23,018
  Interest on securities     441     449     420
  Interest on federal funds sold and at other banks     286     255     156
  Other interest     35     54     30
      Total interest income     24,076     23,038     23,624
                   
Interest expense:                  
  Interest on deposits     2,273     2,184     1,709
  Other interest     215     217     220
    Total interest expense     2,488     2,401     1,929
      Net interest income     21,588     20,637     21,695
  Provision for loan losses     -     193     550
      Net interest income after provision for loan losses     21,588     20,444     21,145
Noninterest income:                  
  Service charges and fees on deposit accounts     632     707     681
    Other noninterest income     1,113     1,577     953
      Total noninterest income     1,745     2,284     1,634
Noninterest expense:                  
  Salaries and employee benefits     6,907     7,097     6,792
  Occupancy and equipment expenses     2,158     2,113     2,416
  Data processing     447     452     1,117
  Professional fees     954     604     657
  Core deposit intangible amortization     408     414     448
  Other operating expenses     1,926     1,856     1,874
    Total noninterest expense     12,800     12,536     13,304
    Income before income taxes     10,533     10,192     9,475
    Income tax     3,846     3,496     3,437
    Net income     6,687     6,696     6,038
    Preferred stock dividend     -     -     26
      Net income applicable to common stock   $ 6,687   $ 6,696   $ 6,012
Earnings per common share:                  
Basic   $ 0.52   $ 0.52   $ 0.48
Diluted     0.51     0.51     0.46
Common shares used in the calculation of earnings per share:                  
Basic     12,825,612     12,775,344     12,636,874
Diluted     13,114,761     13,088,602     12,965,834
                   
   
Stonegate Bank and Subsidiaries  
CONDENSED FINANCIAL HIGHLIGHTS  
(in thousands of dollars)  
   
    As of  
    June 30,
 2016
    December 31,
 2015
    June 30,
 2015
 
BALANCE SHEET ITEMS:                        
Assets   $ 2,404,139     $ 2,380,438     $ 2,272,132  
Loans, net     1,945,517       1,839,422       1,763,674  
Deposits     2,034,212       2,024,367       1,930,257  
Stockholders' equity     296,961       282,564       267,182  
                         
CAPITAL RATIOS:                        
Total capital to risk weighted assets     12.0 %     11.9 %     11.5 %
Tier 1 capital to risk weighted assets     11.1       11.0       10.7  
Common Equity Tier 1 to risk weighted assets     11.1       11.0       10.7  
Tier 1 capital to average assets     10.4       10.0       9.7  
                         
QUARTERLY AVERAGE BALANCE SHEET ITEMS:                        
Assets   $ 2,430,820     $ 2,375,948     $ 2,275,701  
Interest earning assets     2,230,934       2,128,845       2,045,257  
Loans, net     1,891,500       1,825,012       1,723,879  
Interest bearing liabilities     1,692,363       1,674,333       1,603,339  
Deposits     2,060,687       2,015,859       1,922,914  
Stockholders' equity     294,362       279,466       275,906  
                         
 
Stonegate Bank and Subsidiaries
CONDENSED FINANCIAL HIGHLIGHTS
(in thousands of dollars, except per share data)
         
    Three Months Ended
    June 30, 2016   March 31, 2016   June 30,
 2015
FINANCIAL DATA:                  
Net interest income   $ 21,588   $ 20,637   $ 21,695
Net interest income - tax equivalent     22,029     21,086     21,958
Noninterest income     1,745     2,284     1,633
Noninterest expense     12,800     12,536     13,303
Income tax     3,846     3,496     3,437
Net income     6,687     6,696     6,038
Preferred stock dividend     -     -     26
Net income attributed to common shares     6,687     6,696     6,012
Weighted average number of common shares outstanding:                  
Basic     12,825,612     12,775,344     12,636,874
Diluted     13,114,761     13,088,602     12,965,834
Per common share data:                  
Basic   $ 0.52   $ 0.52   $ 0.48
Diluted     0.51     0.51     0.46
Cash dividend declared to common shares     1,028     1,023     505
                   
                   

Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with GAAP. Stonegate's management uses these non-GAAP financial measures in their analysis of Stonegate's performance. These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or transactions that in management's opinion can distort period-to-period comparisons of Stonegate's performance. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of Stonegate's core business. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP disclosures in this press release are set forth below.

 
Reconciliation of GAAP to non-GAAP Measures
(in thousands of dollars, except per share data)
    June 30, 2016   March 31, 2016
Interest income, as reported (GAAP)   $ 24,076   $ 23,038
Tax equivalents adjustments     440     449
Interest income (tax equivalent)   $ 24,516   $ 23,487
Net interest income, as reported (GAAP)   $ 21,588   $ 20,637
Tax equivalent adjustments     440     449
Net interest income (tax equivalent)   $ 22,028   $ 21,086
Net income (GAAP)   $ 6,687   $ 6,696
Non-interest expense adjustments:            
Merger and acquisition related expenses     -     -
Branch closure expenses     -     -
Professional expenses     334     114
Tax effect using the effective tax rate for the period presented     122     39
Net operating income   $ 6,899   $ 6,771
             
Net operating income per common share   $ 0.54   $ 0.53
             

Contact Information

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