Stonegate Bank grew its loans by $31 million during the fourth quarter as its income improved.
The Fort Lauderdale-based bank (OTCBB: SGBK) had net income of $2.54 million, up from $2.22 million in the third quarter. One reason for this was its net interest income growing to $9.5 million, from $9.2 million.
Stonegate Bank closed its acquisition of Florida Shores Bancorp on Jan. 15, so the deal didn’t have a major impact on its fourth quarter financial report besides for some pre-merger operating expenses.
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The bank had $795 million in loans on Dec. 31, up from $764 million on Sept. 30. Most of those are commercial loans. Its net interest margin – the spread between interest collected on loans and paid out on deposits – was 3.74 percent in the fourth quarter, improved from 3.65 percent in the third quarter but down from 4.76 percent in the fourth quarter of 2012.
“We ended the year with our strongest quarter,” Stonegate Bank President and CEO Dave Seleski said. “After a very slow start, including negative loan growth in the first quarter, we were able to achieve all of our goals in 2013 which included 11 percent loan growth, an improvement in percentage of non-interest bearing deposits to total deposits, higher earnings, and improved credit quality. Some of this is a reflection of the continued improvement in the Florida economy but most of the credit goes to the employees that really stepped up to the plate.”
Seleski said the bank’s biggest challenges for 2014 are the conversion of Florida Shores’ systems to its own and the bank’s pending listing on the NASDAQ.
Stonegate Bank took a $1.07 million expense for future loan losses in the fourth quarter, up from a $380,000 expense in the third quarter.
The bank had $6.6 million in non-performing loans, or 0.82 percent of total loans, and $2.1 million in repossessed property on Dec. 31. That’s improved from $8.4 million in non-performing loans, or 1.08 percent of total loans, and $3 million in repossessed property on Sept. 30.
It held $17.3 million in reserve for loan losses on Dec. 31 to cover all of its non-performing loans.
Stonegate Bank was the 12th-largest South Florida-based bank on Sept. 30 with $1.09 billion. By Dec 31, its assets were up to $1.12 billion.
The bank had $988 million in deposits on Dec. 31, up from $889 million on Sept. 30.
For the full year, Stonegate Bank earned $9.32 million in 2013, up from $9.08 million in 2012.
Shares of Stonegate Bank closed at $22.75 on Friday after reaching a 52-week high of $22.98 earlier that day. The 52-week low was $17.25 on Jan. 25, 2013.