SOURCE: Stonegate Bank

Stonegate Bank

October 23, 2015 07:00 ET

Stonegate Bank Announces Third Quarter 2015 Operating Results

POMPANO BEACH, FL--(Marketwired - Oct 23, 2015) - Stonegate Bank (NASDAQ: SGBK) ("Stonegate") reported net income of $6.8 million for the third quarter of 2015 or $0.54 per diluted common share, as compared to net income of $6.0 million for the second quarter of 2015 earnings or $0.46 per diluted common share ($0.53 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 third quarter:

  • Loans: Total loans, net of discounts and deferred fees, grew $57.0 million during the third quarter of 2015 to $1.84 billion at September 30, 2015, a result of net organic loan growth during the third quarter. Commercial real estate ("CRE") comprised 41% of new loan originations for the third quarter of 2015, based upon the outstanding balance as of September 30, 2015. Residential loans accounted for 19% of the new loan originations; commercial and industrial ("C&I") was 16%; construction was 12% of new originations with the remaining balance in consumer and other loans. The loan production for the current quarter was comprised of 67% variable rate loans, with approximately 48% of the variable rate loans tied to LIBOR. Total loan growth for the nine months ended September 30, 2015 was approximately 7.7%.

  • Asset Quality: Total loans past due 30 - 89 days, excluding nonaccrual loans, were $2.8 million at September 30, 2015, up $100,000 from June 30, 2015. Nonaccrual loans were $6.4 million at September 30, 2015, or 0.35% of total loans, up from $4.6 million at June 30, 2015, or 0.26% of total loans. Other real estate owned was $2.6 million at September 30, 2015. 

  • Net Interest Income and Margin: Net interest income, on a tax equivalent basis, increased $705,000 for the three months ended September 30, 2015 as compared to the three months ended June 30, 2015. Net interest income totaled $22.7 million for the three months ended September 30, 2015. The net interest margin, on a tax equivalent basis, remained virtually unchanged at 4.32% for the third quarter of 2015 as compared to 4.31% for the second quarter of 2015. The increase in the margin was primarily a result of the increase in the average yield on loans.

  • Noninterest Expense: Noninterest expense decreased to $12.4 million for the three months ended September 30, 2015 from $13.3 million for the three months ended June 30, 2015. 

  • Capital: Stonegate remained well-capitalized as of September 30, 2015 with capital of $274.2 million as compared to $267.2 million at June 30, 2015. As of September 30, 2015, Stonegate's total risk-based capital ratio was 11.5%; Stonegate's Tier 1 and Common Equity Tier 1 capital ratio was 10.7%; and Stonegate's leverage capital ratio was 10.0%. 

Loans and Deposits

Loans outstanding at September 30, 2015 were $1.84 billion as compared to $1.78 billion at June 30, 2015, an increase of $57.0 million during the third quarter of 2015. 

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

           
(in thousands of dollars)     September 30, 2015   June 30, 2015
             
Commercial   $ 210,261   $ 198,304
Commercial real estate - owner occupied     466,945     460,830
Commercial real estate - other     549,629     548,735
Construction and land development     204,165     184,947
Residential real estate     329,685     325,866
Consumer and other loans     91,936     78,540
  Total loans     1,852,621     1,797,222
Less: discount on loans acquired     11,959     13,620
Less: net deferred fees     2,563     2,513
Recorded investment in loans     1,838,099     1,781,088
Less: Allowance for loan losses     18,023     17,414
  Net loans   $ 1,820,076   $ 1,763,674
             

New loan originations were $144.7 million during the third quarter of 2015, with fundings of $114.7 million. As of September 30, 2015, outstanding commitments were approximately $422.3 million with approximately $117.8 million representing new approved loan originations and approximately $97.9 million in unfunded construction commitments.

Deposits increased to $1.95 billion at September 30, 2015 from $1.93 billion at June 30, 2015. Noninterest-bearing deposits decreased $9.8 million to $389.7 million at September 30, 2015, and represented approximately 20% of total deposits. This decline was primarily due to the transfer of one account for about $8.8 million into a money market account. At September 30, 2015, money market accounts surpassed the $1 billion mark as they increased $55.2 million from June 30, 2015. Time deposits decreased approximately $16.0 million during the third quarter of 2015 due to runoff of acquired deposits that were priced above the market.

The following table shows the composition of deposits as of September 30, 2015 and June 30, 2015:

           
(in thousands of dollars)     September 30, 2015   June 30, 2015
             
Noninterest bearing   $ 389,725   $ 399,479
NOW     283,910     288,590
Money market     1,005,228     950,019
Savings     95,863     99,425
Certificates of deposit     176,755     192,744
  Total deposits   $ 1,951,481   $ 1,930,257
             

Credit Quality and Allowance for Loan Losses

As of September 30, 2015, Stonegate's past due and nonaccrual loans totaled $9.2 million and were 0.50% of total loans as compared to $7.3 million or 0.41% of total loans at June 30, 2015. Loans past due and nonaccrual acquired from Community Bank of Broward ("CBB") totaled $2.8 million as of September 30, 2015. Loans past due 30-89 days were $2.8 million at September 30, 2015, up slightly from $2.7 million at June 30, 2015. Nonaccrual loans stood at $6.4 million at September 30, 2015, an increase of $1.8 million from $4.6 million at June 30, 2015. This increase was primarily due to the addition of two loans for $1.2 million acquired from CBB, three loans for $1.2 million acquired from Florida Shores Bank - Southwest and two legacy loans for $900,000 that were transferred to nonaccrual status; offset by the transfer of two loans for $1.3 million to Other Real Estate Owned; and the payoff of one loan for approximately $25,000. Legacy nonaccrual loans were approximately $1.0 million at September 30, 2015 versus $221,000 as of June 30, 2015. Commercial real estate loans classified as nonaccrual were $4.1 million or 64.0% of the nonaccrual loans and residential loans classified as nonaccrual were $1.1 million or 17.8% of the nonaccrual loans as of September 30, 2015. As of September 30, 2015, Stonegate did not have any loans past due 90 days or more that were still accruing. There remained approximately $10.8 million in nonaccretable discounts on loans acquired as of September 30, 2015. Stonegate does not have any loans under which it participates in a loss share arrangement. 

Nonperforming assets (nonaccrual loans and other real estate owned) were $9.0 million as of September 30, 2015, an increase of $1.9 million from June 30, 2015. Other real estate owned increased to $2.6 million as of September 30, 2015 as compared to $2.4 million as of June 30, 2015. The increase was the result of the transfer of two loans offset by the sale of one property during the quarter.

The following table outlines nonperforming assets for the periods ended:

             
(in thousands of dollars)   September 30,
 2015
    June 30,
2015
 
             
Nonaccrual   $ 6,366     $ 4,649  
Other real estate owned     2,629       2,402  
  Total nonperforming assets   $ 8,995     $ 7,051  
                 
Nonperforming loans as a percentage of total loans     0.35 %     0.26 %
Nonperforming assets as a percentage of total assets     0.39 %     0.31 %
                 

Loans modified as a troubled debt restructuring were $9.9 million and $12.5 million at September 30, 2015 and June 30, 2015, respectively. The decrease of $2.6 million is due to the transfer of one loan to OREO and the sale of another note. Loans classified as a troubled debt restructuring and on nonaccrual decreased to $450,000 at September 30, 2015 from $1.2 million as of June 30, 2015. There were no loans modified as troubled debt restructuring during the third quarter of 2015 as compared to one loan which was modified as troubled debt restructuring during the second quarter of 2015. Specific reserves allocated to loans modified as troubled debt restructuring were $117,000 at September 30, 2015, a decrease from $894,000 at June 30, 2015.

At September 30, 2015, the allowance for loan losses was $18.0 million, an increase of $609,000 from June 30, 2015. During the third quarter of 2015, recoveries totaled $359,000 and charge-offs were $593,000. Additionally, $843,000 was added to the allowance for loan losses through a provision expense. Specific reserves decreased to $700,000 at September 30, 2015 from $894,000 at June 30, 2015. The allowance for loan losses represented 0.98% of total loans as of September 30, 2015 and June 30, 2015. Additionally, the allowance represented 1.40% of total legacy loans as of September 30, 2015. Only legacy loans are covered by the allowance as acquired loans are recorded at their fair value on the date of acquisition and have not experienced significant deterioration above their initial estimate. 

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

             
(in thousands of dollars)   September 30,
2015
    June 30,
2015
 
                 
Balance at beginning of period   $ 17,414     $ 16,768  
Charge-offs     (593 )     (25 )
Recoveries     359       121  
Provision for loan losses     843       550  
Balance at end of period   $ 18,023     $ 17,414  
                 

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)   September 30,
2015
  June 30,
2015
    Amount   %   Amount   %
Commercial   $ 2,022   11.2   $ 1,849   10.6
Commercial real estate     11,102   61.6     11,144   64.0
Construction and land development     1,763   9.8     1,879   10.8
Residential real estate     2,763   15.3     2,196   12.6
Consumer and other loans     373   2.1     346   2.0
    Total   $ 18,023   100.0   $ 17,414   100.0
                     

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

                   
(in thousands of dollars)     September 30,
2015
    June 30,
2015
    September 30,
2014
                   
Impaired loans without a valuation allowance   $ 6,178   $ 6,785   $ 8,658
Impaired loans with a valuation allowance     9,043     7,990     7,923
Total impaired loans   $ 15,221   $ 14,775   $ 16,581
                   
Valuation allowance related to impaired loans   $ 700   $ 894   $ 1,289
                   

Net Interest Income and Margin

On a tax equivalent basis, Stonegate's net interest income for the three months ended September 30, 2015 was $22.7 million, an increase of approximately $705,000 from the second quarter of 2015 and an increase of $8.6 million from the third quarter 2014. The increase from the second quarter of 2015 was a result of net organic loan growth while the increase from the third quarter of 2014 was primarily a result of the loans and other interest-earning assets acquired from CBB and organic growth. Average loans for the second quarter of 2015 were $1.80 billion as compared to $1.74 billion for the second quarter of 2015 and $1.22 billion for the third quarter of 2014. 

The net interest margin on a tax equivalent basis increased slightly from 4.31% for the second quarter of 2015 to 4.32% for the third quarter of 2015. The net interest margin was 3.67% for the third quarter of 2014. The net interest margin was augmented for the third quarter of 2015 due to the recognition of nonaccretable discounts. Without these discounts the net interest margin would have been approximately 4.00%. During the second quarter of 2015 Stonegate recognized approximately $130,000 in time deposit fair value amortization from the CBB acquisition that was not repeated in the third quarter. The net interest margin would have been 4.28% had this reduction in interest expense not occurred during the second quarter of 2015. Additionally, the net interest margin for the second quarter of 2015 was slightly higher due to recognition of nonaccretable discounts on several acquired loans which were paid off during the current quarter. The average yield on total earning assets was 4.72% for the third quarter of 2015 versus 4.68% for the second quarter of 2015. This increase was due primarily to the shift of approximately $31.2 million from deposits with interest at banks to loans. The average yield on paying liabilities increased 5 basis points from 0.48% from the second quarter of 2015 to 0.53% for the third quarter of 2015. However, the yield on paying liabilities for the second quarter of 2015 would have been 4 basis points higher at 0.52% if the reduction of interest expense had not occurred during the second quarter. As such, the actual increase over the second quarter was only 1 basis point. Stonegate's cost of funds has declined from 0.49% for the September 2014 month-to-date average to 0.43% for the September 2015 month-to-date average. The cost of funds increased slightly from the June 2015 month-to-date average due to the shift of deposits from noninterest-bearing deposits to interest-bearing.

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)
    3rd Quarter 2015     2nd Quarter 2015     3rd Quarter 2014  
    Average Balance   Interest   Rate     Average Balance   Interest   Rate     Average Balance   Interest   Rate  
ASSETS                                                      
Loans, Net(1)(2)(4)   $ 1,801,517   $ 24,182   5.33 %   $ 1,740,670   $ 23,281   5.36 %   $ 1,218,116   $ 15,450   5.03 %
Investment Securities     108,046     433   1.59       107,226     420   1.57       88,822     300   1.34  
Federal Funds Sold     26,522     24   0.36       20,000     15   0.30       20,000     10   0.20  
Other Investments(3)     2,895     33   4.52       2,895     30   4.16       2,422     22   3.60  
Deposits with interest at banks     143,267     117   0.32       174,466     141   0.32       194,987     143   0.29  
Total Earning Assets     2,082,247     24,789   4.72 %     2,045,257     23,887   4.68 %     1,524,347     15,925   4.14 %
                                                       
                                                       
LIABILITIES                                                      
Savings, NOW and Money Market   $ 1,360,792   $ 1,677   0.49 %   $ 1,332,580   $ 1,596   0.48 %   $ 999,423   $ 1,336   0.53 %
Time Deposits     181,453     226   0.49       209,209     113   0.22       183,597     267   0.58  
Total Interest Bearing Deposits     1,542,245     1,903   0.49       1,541,789     1,709   0.44       1,183,020     1,603   0.54  
Other Borrowings     63,095     223   1.40       61,550     220   1.43       51,709     210   1.61  
Total Interest Bearing Liabilities     1,605,340     2,126   0.52 %     1,603,339     1,929   0.48 %     1,234,729     1,813   0.58 %
                                                       
Net interest spread (tax equivalent basis) (4)               4.20 %               4.20 %               3.56 %
Net interest margin (tax equivalent basis) (5)               4.32 %               4.31 %               3.67 %
                                                       
(1)   Average balances include nonaccrual loans, and are net of unearned loan fees of $2,548, $2,493 and $1,403 for 3rd Quarter 2015, 2nd Quarter 2015 and 3rd Quarter 2014, respectively.
(2)   Interest income includes fees on loans of $49, $85 and $23 for 3rd Quarter 2015, 2nd Quarter 2015 and 3rd Quarter 2014, respectively.
(3)   "Other investments" consists of equity stock in the Federal Home Loan Bank of Atlanta ("FHLB") that Stonegate is required to own based on its transactions with the FHLB.
(4)   Interest income and rates include the effects of a tax equivalent adjustment using applicable statutory tax rates to adjust tax exempt interest income on tax exempt loans to a fully taxable basis.
(5)   Represents net interest income divided by total interest-earning assets.
     

Noninterest Income

Noninterest income of $1.7 million for the third quarter of 2015 increased from $1.6 million for the quarter ended June 30, 2015. The increase was primarily attributable to an increase in service charges on deposit accounts.

Noninterest Expense

Noninterest expense for the three months ended September 30, 2015 decreased from $13.3 million at June 30, 2015 to $12.4 million and was greater than the $9.4 million for the three months ended September 30, 2014. 

Salaries and employee benefits were $6.8 million for both the third and second quarter of 2015. This compares with $5.3 million for the three months ended September 30, 2014. During the second quarter of 2015 there was approximately $200,000 of salary and benefit costs associated with the CBB acquisition. During the third quarter of 2015 there was an adjustment made to the Bank's 2015 incentive accrual which resulted in salaries and employee benefits remaining the same as in the second quarter.

Occupancy and equipment expenses were $2.2 million, $2.4 million and $1.6 million for the three months ended September 30, 2015, June 30, 2015 and September 30, 2014, respectively. The decrease, when compared to the second quarter of 2015, was due to the costs associated with a merger-related branch closing during the second quarter of 2015. The increase from the quarter ended September 20, 2014 is due to the additional facilities acquired from CBB.

Data processing expense decreased from $1.1 million for the second quarter of 2015 to $445,000 for the quarter ended September 30, 2015. This decrease was due to the conversion costs associated with CBB that were expensed during the second quarter. Professional fees decreased for the three months ended September 30, 2015 to $546,000. This compared to professional fees of $657,000 for the three months ended June 30, 2015 and $692,000 for the three months ended September 30, 2014. For the quarters ended September 30, 2015 and June 30, 2015 there were no merger related professional fees. However, during the third quarter of 2014, the Bank had approximately $213,000 of merger related professional fees. 

The table below outlines the expenses for the quarters ended:

               
    September 30, 2015   June 30, 2015   September 30, 2014  
(in thousands of dollars)                    
                     
Salaries and employee benefits   $ 6,804   $ 6,792   $ 5,313  
Occupancy and equipment expense     2,186     2,416     1,589  
FDIC insurance and state assessments     381     379     251  
Data processing     445     1,117     319  
Loan and other real estate expense     200     153     (83 )
Professional fees     546     657     692  
Core deposit intangible amortization     449     448     327  
Other operating expenses     1,418     1,341     1,012  
Totals   $ 12,429   $ 13,303   $ 9,420  
                     

Merger and conversion costs associated with the CBB acquisition of approximately $1.0 million were expensed during the second quarter of 2015 with the realization of the associated cost savings beginning in the third quarter of 2015.

About Stonegate Bank

Stonegate Bank is a full-service commercial bank, providing a wide range of business and consumer financial products and services through its 21 banking offices in its target marketplaces of South and West Florida, which are comprised primarily of Broward, Charlotte, Collier, Hillsborough, Lee, Miami-Dade, Palm Beach and Sarasota Counties in Florida. Stonegate's principal executive office and mailing address is 400 North Federal Highway, Pompano Beach, Florida 33062 and its telephone number is (954) 315-5500.

In conjunction with this earnings report, the Company will offer a live participatory conference call to discuss the financial results for the third quarter of 2015. This telephone conference call will be held on Friday, October 23, 2015, beginning at 2:30 p.m. Eastern Time. The call-in toll-free telephone number is 1-866-820-3585. The Conference ID is 57446420. Participants will be asked for their First Name, Last Name and Company Name. An audio replay of the conference call will be available until November 9, 2015, and may be accessed telephonically at 1-855-859-2056 using Conference ID# 57446420. 

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)  
   
    September 30, 2015     December 31, 2014  
Assets                
Cash and due from banks   $ 217,301     $ 231,406  
Federal funds sold     15,000       20,000  
Securities held to maturity (Fair value of $107,627 at September 30, 2015 and $83,318 at December 31, 2014)     105,711       81,627  
Other investments     2,895       2,422  
Loans, net of allowance for loan losses of $18,023 at September 30, 2015 and $16,630 at December 31, 2014     1,820,076       1,292,692  
Premises and equipment, net     27,448       25,620  
Bank-owned life insurance     29,582       22,832  
Other real estate owned     2,629       259  
Other assets     91,485       46,436  
    Total assets   $ 2,312,127     $ 1,723,294  
                 
Liabilities and Stockholders' Equity                
Liabilities                
  Total deposits   $ 1,951,481     $ 1,452,194  
  Other borrowings     69,657       56,297  
  Other liabilities     16,836       13,688  
    Total liabilities     2,037,974       1,522,179  
                 
Stockholders' Equity                
  Senior non-cumulative perpetual preferred stock, Series A, $1,000 liquidation value; 12,750 shares authorized; no shares issued and outstanding as of June 30, 2015; 12,750 issued and outstanding as of December 31, 2014     -       12,750  
  Common stock, $5 par value, 20,000,000 shares authorized; 12,643,752 issued and 12,641,094 shares outstanding as of June 30, 2015 and 10,257,163 shares issued and 10,254,505 outstanding as of December 31, 2014     63,301       51,286  
  Additional paid-in capital     145,363       88,180  
  Retained earnings     66,961       50,641  
  Treasury Stock     (13 )     (13 )
  Accumulated other comprehensive income (loss)     (1,459 )     (1,729 )
    Total stockholders' equity     274,153       201,115  
    Total liabilities and stockholders' equity   $ 2,312,127     $ 1,723,294  
                 
 
Stonegate Bank and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)
(in thousands of dollars, except per share data)
 
    For the three months ended
    September 30,
2015
  June 30,
2015
  September 30,
2014
Interest income:                  
  Interest and fees on loans   $ 23,894   $ 23,018   $ 15,265
  Interest on securities     433     420     300
  Interest on federal funds sold and at other banks     141     156     153
  Other interest     33     30     22
    Total interest income     24,501     23,624     15,740
                   
Interest expense:                  
  Interest on deposits     1,903     1,709     1,603
  Other interest     223     220     210
    Total interest expense     2,126     1,929     1,813
      Net interest income     22,375     21,695     13,927
  Provision for loan losses     843     550     -
        Net interest income after provision for loan losses     21,532     21,145     13,927
                   
Noninterest income:                  
  Service charges and fees on deposit accounts     753     681     392
  Other noninterest income     936     953     710
    Total noninterest income     1,689     1,634     1,102
Noninterest expense:                  
  Salaries and employee benefits     6,804     6,792     5,313
  Occupancy and equipment expenses     2,186     2,416     1,589
  Data processing     445     1,117     319
  Professional fees     546     657     692
  Core deposit intangible amortization     449     448     327
  Other operating expenses     1,999     1,874     1,180
    Total noninterest expense     12,429     13,304     9,420
    Income before income taxes     10,792     9,475     5,609
    Income tax     3,955     3,437     2,018
    Net income     6,837     6,038     3,591
    Preferred stock dividend     -     26     32
      Net income applicable to common stock   $ 6,837   $ 6,012   $ 3,559
Earnings per common share:                  
Basic   $ 0.54   $ 0.48   $ 0.35
Diluted     0.53     0.46     0.34
Common shares used in the calculation of earnings per share:                  
Basic     12,650,042     12,636,874     10,100,763
Diluted     13,006,584     12,965,834     10,432,794
                   
 
Stonegate Bank and Subsidiaries
CONDENSED FINANCIAL HIGHLIGHTS
(in thousands of dollars)
 
      As of  
      September 30,
 2015
      June 30,
2015
      September 30,
 2014
 
BALANCE SHEET ITEMS:                        
Assets   $ 2,312,127     $ 2,272,132     $ 1,675,768  
Loans, net     1,820,076       1,763,674       1,215,193  
Deposits     1,951,981       1,930,257       1,410,488  
Stockholders' equity     274,153       267,182       194,952  
                         
CAPITAL RATIOS:                        
Total capital to risk weighted assets     11.5 %     11.5 %     14.7 %
Tier 1 capital to risk weighted assets     10.7       10.7       13.5  
Common Equity Tier 1 to risk weighted assets     10.7       10.7       N/A  
Tier 1 capital to average assets     10.0       9.7       10.7  
                         
QUARTERLY AVERAGE BALANCE SHEET ITEMS:                        
Assets   $ 2,294,617     $ 2,275,701     $ 1,677,991  
Interest earning assets     2,082,247       2,045,257       1,524,347  
Loans, net     1,801,517       1,740,670       1,218,116  
Interest bearing liabilities     1,605,340       1,603,339       1,234,729  
Deposits     1,945,906       1,922,914       1,416,488  
Stockholders' equity     272,508       275,906       194,080  
                         
 
Stonegate Bank and Subsidiaries
CONDENSED FINANCIAL HIGHLIGHTS
(in thousands of dollars, except per share data)
       
      Three Months Ended
      September 30, 2015     June 30,
2015
    September 30,
 2014
FINANCIAL DATA:                  
Net interest income   $ 22,375   $ 21,695   $ 13,927
Net interest income - tax equivalent     22,663     21,958     14,112
Noninterest income     1,689     1,634     1,102
Noninterest expense     12,429     13,304     9,420
Income tax     3,955     3,437     2,018
Net income     6,837     6,038     3,591
Preferred stock dividend     -     26     32
Net income attributed to common shares     6,837     6,012     3,559
Weighted average number of common shares outstanding:                  
Basic     12,650,042     12,636,874     10,100,763
Diluted     13,006,584     12,965,834     10,432,794
Per common share data:                  
Basic   $ 0.54   $ 0.48   $ 0.35
Diluted     0.53     0.46     0.34
Cash dividend declared to common shares     506     505     408
                   

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)
             
      September 30, 2015     June 30, 2015
Interest income, as reported (GAAP)   $ 24,501   $ 23,624
Tax equivalents adjustments     288     263
Interest income (tax equivalent)   $ 24,789   $ 23,887
Net interest income, as reported (GAAP)   $ 22,375   $ 21,695
Tax equivalent adjustments     288     263
Net interest income (tax equivalent)   $ 22,663   $ 21,958
Net income (GAAP)   $ 6,837   $ 6,038
Non-interest expense adjustments:            
Merger and acquisition related expenses     -     824
Branch closure expenses     -     228
Professional expenses     -     -
Tax effect using the effective tax rate for the period presented     -     382
Net operating income   $ 6,837   $ 6,708
             
Net operating income per common share   $ 0.54   $ 0.53
             
             

Contact Information

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