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Message #3 From:
NewsBot Date: July 14, 2006 02:01:00 PM
SSBX News Silver State Bancorp Announces Record Quarterly Earnings
LAS VEGAS--(BUSINESS WIRE)--July 14, 2006--Silver State Bancorp (OTCBB: SSBX) announced today its financial results for the second quarter 2006.
HIGHLIGHTS
-- Net income of $5,113,000, up $1,251,000 or 32.4% from the second quarter 2005.
-- Diluted earnings per share up 23.3% to $.37 compared to $.30 in the second quarter 2005.
-- Annualized return on equity of 25.8% for the six months ended June 30, 2006.
-- Annualized return on assets of 2.20% for the six months ended June 30, 2006
-- Loan growth up $212.5 million or 36.5% year over year and $136.5 million or 20.7% year to date.
Silver State Bancorp reported net income of $5,113,000 or $.37 per diluted share for the three months ended June 30, 2006. This represents an increase of $1,251,000 or 32.4% when compared to net income of $3,862,000 or $.30 per diluted share for the second quarter of 2005.
For the six months ended June 30, 2006, net income was $9,556,000 or $.71 per diluted share, representing an increase of $2,124,000 or 28.6% when compared to net income of $7,432,000 or $.57 per diluted share for the first six months of 2005.
Total assets were $953.4 million at June 30, 2006, a year-over-year increase of $225.7 million or 31.0%, a year-to-date increase of $147.1 million or 18.2% and a quarterly increase of $79.3 million or 9.1%
Total loans grew $78.8 million or 11.0% during the quarter and were reported at $794.5 million at June 30, 2006. The year-over-year and year-to-date increase in loans was $212.5 million or 36.5% and $136.5 million or 20.7%, respectively.
Silver State Bancorp's return on average equity and return on average assets for the second quarter of 2006 was 25.1% and 2.28%, respectively.
"We are extremely pleased to show these strong financial results for the second quarter," said Corey L. Johnson, president and chief executive officer. "The company continues to perform well, both in terms of our balance sheet growth and our return to shareholders. Our margins remain strong despite the current interest rate environment and other competitive pressures. We recently opened a central administration building in order to streamline certain operational functions and we look forward to opening our 10th branch during the next quarter. Our SBA division is also continuing its expansion efforts with the recent loan production office opening in the Los Angeles area."
Johnson continued, "Our pending merger with Choice Bank in Phoenix is progressing nicely. We are awaiting final regulatory approval and anticipate closing this transaction during the third quarter. Choice Bank is performing very well and will provide us with a strong presence in that market."
Operating Results
Total interest and fee income increased $7.3 million or 55.6% to $20.5 million during the three months ended June 30, 2006, compared to the same period of 2005. This increase is attributable to an increase in the average volume of earning assets, primarily loans, and an increase in the average yields on those assets.
Total interest expense for the second quarter of 2006 was $6.9 million, compared to $3.5 million for the second quarter of 2005. This increase of $3.4 million or 95.6% was a result of an overall increase in interest-bearing deposit balances, coupled with an increased cost of funds resulting from a shift in the company's deposit mix.
Net interest income was $13.6 million for the three months ended June 30, 2006, as compared to $9.7 for the same period of 2005, an increase of $4.0 million or 41.1%.
The company's net interest margin increased to 6.45% for the second quarter of 2006, compared to 5.62% for the second quarter of 2005 and 6.25% for the first quarter of 2006. Year-to-date net interest margin for the six months ended June 20, 2006, was 6.35%.
Total non-interest income was $934 thousand for the three months ended June 30, 2006, a decrease of $249 thousand or 21.0% when compared to the three months ended June 30, 2005. This decrease is attributable primarily to a decrease in gain on sales of loans which were $694 thousand during the second quarter of 2006 versus $824 thousand during the second quarter of 2005. Gain on sales of loans was $1.2 million during the first quarter of 2006. The remaining decrease for the quarter was due primarily to a decrease in net servicing fee income of $86 thousand.
Non-interest expense was $6.1 million for the second quarter of 2006, an increase of $1.7 million or 39.4% compared to the second quarter of 2005. Salaries and employee benefit costs increased $1.2 million or 46.3% from $2.6 million for the second quarter of 2005 to $3.8 million for the second quarter of 2006. The remaining increase is due primarily to an increase in accounting, legal and other professional fees of approximately $236 thousand.
Balance Sheet
Gross loans totaled $794.5 million at June 30, 2006, a year-to-date increase of $136.5 million or 20.7% and an increase of $212.5 million or 36.5 % from June 30, 2005. The allowance for loan losses represents 1.20% of gross loans at June 30, 2006, compared to 1.26% at Dec. 31, 2005, and 1.21% at June 30, 2005.
Total deposits were $766.1 million at June 30, 2006, an increase of $121 million or 18.69% from Dec. 31, 2005, and an increase of $173.4 million or 29.3% from June 30, 2005.
Stockholders' equity increased $25.0 million or 39.2% from Dec. 31, 2005, to $88.7 million at June 30, 2006. This also represents an increase of $37.7 million or 74.0% when compared to June 30, 2005. The increase in stockholders' equity is a result of the allocation of the company's net income, capital provided as a result of stock option exercises and net proceeds from a private placement completed during April 2006. Total stockholders' equity was 9.3% of total assets at June 30, 2006, compared to 7.9% at Dec. 31, 2005, and 7.0% at June 30, 2005. Book value per share was $6.63 at June 30, 2006, compared to $5.11 at Dec. 31, 2005, and $4.20 at June 30, 2005.
The company is considered "well-capitalized" pursuant to regulatory capital definitions at June 30, 2006.
Other
-- The July 2006 issue of US Banker named Silver State Bancorp third on its list of the top 200 publicly traded community banks, ranked by 3-year average ROE.
About Silver State Bancorp
Silver State Bancorp, through its wholly owned subsidiary, Silver State Bank, operates nine full-service branches in southern Nevada and eight loan production offices located in Nevada, California, Washington, Oregon, Utah, Arizona, and Colorado. Please visit www.silverstatebank.com for more information on products and services.
Forward-Looking Statements
This press release contains forward-looking statements. Terms such as "will," "should," "plan," "intend," "expect," "continue," "believe," "anticipate," "seek," and similar expressions are forward looking in nature and reflect management's view only as the date hereof. Actual results and events could differ materially from those expressed or anticipated and are subject to a number of risks and uncertainties including but not limited to fluctuations in interest rates, asset quality, government regulations, economic conditions, and competition in the geographic and business areas in which Silver State Bancorp conducts its operations. We undertake no obligation to review or update any forward-looking statements, whether as a result of new information, future events, or otherwise.
SILVER STATE BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
IN THOUSANDS
UNAUDITED
June 30 June 30
2006 2005
ASSETS
Cash and due from banks $22,800 $31,239
Federal funds sold 19,777 -
Investment securities, net 82,814 92,447
Loans 794,549 582,065
Less allowance for loan loss (9,511) (7,069)
----------------------
Net loans 785,038 574,996
Premises and equipment, net 25,075 16,772
Accrued interest receivable and other assets 17,861 12,178
----------------------
TOTAL ASSETS $953,365 $727,632
======================
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing $186,635 $184,018
Interest bearing 579,453 408,636
----------------------
Total deposits 766,088 592,654
Federal funds purchased and securities sold
under agreements to repurchase 16,225 20,889
Other borrowed funds 55,000 42,000
Accrued interest and other liabilities 9,329 3,077
Subordinated Debt 18,042 18,042
----------------------
TOTAL LIABILITIES 864,684 676,662
----------------------
STOCKHOLDERS' EQUITY
Common stock 1,392 1,270(a)
Surplus 44,029 24,012(a)
Retained earnings 45,825 28,074
Other comprehensive income (loss) (470) (278)
Treasury stock (2,095) (2,108)
----------------------
TOTAL STOCKHOLDERS' EQUITY 88,681 50,970
----------------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $953,365 $727,632
======================
BOOK VALUE PER SHARE $6.63 $4.20(b)
======================
SHARES OUTSTANDING - END OF PERIOD 13,383,200 12,149,898(b)
======================
(a) Common Stock and Surplus for June 30, 2005 have been adjusted for
the 2:1 stock split, effective July 29, 2005
(b) Book Value per Share and Shares Outstanding for June 30, 2005 have
been adjusted for the 2:1 stock split, effective July 29, 2005
SILVER STATE BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
IN THOUSANDS
UNAUDITED
For the Six Months For the Three Months
Ended Ended
June 30 June 30 June 30 June 30
2006 2005 2006 2005
INTEREST INCOME
Interest and
fees on loans $36,885 $23,471 $19,490 $12,275
Interest on
investment
securities 1,389 1,218 743 711
Interest on
federal funds
sold 513 331 250 178
---------------------- ----------------------
Total interest
income 38,787 25,020 20,483 13,164
---------------------- ----------------------
INTEREST EXPENSE
Total interest
expense 12,758 6,597 6,865 3,510
---------------------- ----------------------
NET INTEREST
INCOME 26,029 18,423 13,618 9,654
Provision for
loan loss (1,200) (1,100) (600) (600)
---------------------- ----------------------
NET INTEREST
INCOME AFTER
PROVISION
FOR LOAN LOSS 24,829 17,323 13,018 9,054
TOTAL NON-INTEREST
INCOME 2,306 2,389 934 1,183
TOTAL NON-INTEREST
EXPENSE 12,386 8,409 6,070 4,355
---------------------- ----------------------
INCOME BEFORE
INCOME TAXES 14,749 11,303 7,882 5,882
PROVISION FOR
INCOME TAXES 5,193 3,871 2,769 2,020
---------------------- ----------------------
NET INCOME $9,556 $7,432 $5,113 $3,862
====================== ======================
NET INCOME PER
SHARE
(Diluted) $0.71 $0.57(c) $0.37 $0.30(c)
====================== ======================
AVERAGE NUMBER
OF DILUTED
SHARES
OUTSTANDING 13,460,219 12,991,257(c) 13,713,217 13,003,043(c)
====================== ======================
(c) Net income per Share and Average Number of Diluted Shares
Outstanding for the six months and three months ended June 30,
2005 have been adjusted for the 2:1 stock split effective July 29,
2005.
SILVER STATE BANCORP
Selected Consolidated Financial Highlights
(In thousands, except per share data and ratios; unaudited)
Full Year 2nd Qtr 1st Qtr Full Year
2006 2006 2006 2005
Income Statement Data
---------------------
Interest income $38,787 $20,483 $18,304 $57,086
Interest expense 12,758 6,865 5,893 15,761
Net interest income 26,029 13,618 12,411 41,325
Provision for loan losses 1,200 600 600 2,350
Non-interest income 2,306 934 1,372 4,779
Non-interest expense 12,386 6,070 6,316 19,846
Income before provision for
income taxes 14,749 7,882 6,867 23,908
Provision for income taxes 5,193 2,769 2,424 8,281
Net income 9,556 5,113 4,443 15,627
Balance Sheet Data (at period end)
----------------------------------
Investment securities $82,814 $82,814 $76,227 $75,978
Loans, gross 794,549 794,549 715,721 658,040
Total assets 953,365 953,365 874,065 806,297
Total deposits 766,088 766,088 724,804 645,465
Non-interest bearing deposits 186,635 186,635 179,369 166,383
Total shareholders' equity 88,681 88,681 70,704 63,694
Share Data(1)
-------------
Basic earnings per common share 0.71 0.38 0.35 1.27
Diluted earnings per common
share 0.71 0.37 0.34 1.19
Basic average shares
outstanding 12,880 13,141 12,615 12,353
Diluted average shares
outstanding 13,460 13,713 13,204 13,153
Book value per common share 6.63 6.63 5.57 5.11
Selected Ratios
---------------
Return on average total
shareholders' equity 25.82% 25.14% 26.69% 30.29%
Return on average total assets 2.20% 2.28% 2.12% 2.09%
Net interest margin 6.35% 6.45% 6.25% 5.86%
Efficiency ratio(2) 43.71% 41.71% 45.82% 43.05%
Average earning assets ratio 94.38% 94.21% 94.56% 94.24%
Loan to deposit ratio 102.47% 102.47% 97.51% 100.66%
Asset Quality Ratios
--------------------
Allowance for loan losses 9,511 9,511 8,947 8,314
Allowance to ending total gross
loans 1.20% 1.20% 1.25% 1.26%
Non-performing assets(3) 904 904 646 1,817
Non-performing assets to
total assets 0.09% 0.09% 0.07% 0.23%
Net charge-off's 3 5 - 88
Net charge-off's to average
gross loans 0.00% 0.00% 0.00% 0.01%
Regulatory Capital Ratios(4)
----------------------------
Leverage ratio 11.88% 11.88% 10.57% 10.39%
Tier 1 risk-based capital ratio 11.69% 11.69% 10.91% 10.89%
Total risk-based capital ratio 12.75% 12.75% 12.02% 12.23%
4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
2005 2005 2005 2005
Income Statement Data
---------------------
Interest income $16,461 $15,584 $13,164 $11,856
Interest expense 4,797 4,367 3,510 3,087
Net interest income 11,664 11,217 9,654 8,769
Provision for loan losses 600 650 600 500
Non-interest income 1,274 1,180 1,183 1,206
Non-interest expense 6,922 4,558 4,355 4,054
Income before provision
for income taxes 5,416 7,189 5,882 5,421
Provision for income
taxes 1,956 2,454 2,020 1,851
Net income 3,460 4,735 3,862 3,570
Balance Sheet Data (at period end)
----------------------------------
Investment securities $75,978 $95,259 $95,120 $94,116
Loans, gross 658,040 591,269 582,064 560,135
Total assets 806,297 792,240 727,632 730,134
Total deposits 645,465 662,678 592,654 605,288
Non-interest bearing deposits 166,383 190,791 184,018 190,973
Total shareholders' equity 63,694 57,968 50,970 46,764
Share Data(1)
-------------
Basic earnings per common share 0.28 0.38 0.32 0.29
Diluted earnings per common
share 0.26 0.36 0.30 0.28
Basic average shares
outstanding 12,450 12,325 12,146 12,124
Diluted average shares
outstanding 13,104 13,158 13,003 12,979
Book value per common share 5.11 4.66 4.20 3.86
Selected Ratios
---------------
Return on average total
shareholders' equity 23.22% 35.05% 32.16% 32.09%
Return on average total assets 1.79% 2.41% 2.12% 2.04%
Net interest margin 6.42% 6.04% 5.62% 5.32%
Efficiency ratio(2) 53.50% 36.77% 40.19% 40.64%
Average earning assets ratio 94.05% 94.58% 94.47% 94.01%
Loan to deposit ratio 100.66% 88.06% 97.02% 91.46%
Asset Quality Ratios
--------------------
Allowance for loan losses 8,314 7,744 7,069 6,525
Allowance to ending total
gross loans 1.26% 1.31% 1.21% 1.16%
Non-performing assets(3) 1,817 786 6,921 5,512
Non-performing assets to
total assets 0.23% 0.10% 0.95% 0.75%
Net charge-off's - - 56 26
Net charge-off's to average
gross loans 0.00% 0.00% 0.01% 0.00%
Regulatory Capital Ratios(4)
----------------------------
Leverage ratio 10.39% 9.30% 8.77% 8.44%
Tier 1 risk-based capital ratio 10.89% 10.84% 10.13% 9.41%
Total risk-based capital ratio 12.23% 9.23% 12.00% 11.37%
Notes:
(1) Prior periods have been adjusted to reflect the stock splits; a
2:1 stock split, effective July 29, 2005.
(2) Efficiency ratio is non-interest expense divided by net interest
income plus non-interest income.
(3) Non-performing assets consist of loans contractually past due 90
days or more, nonaccrual loans, and other real estate owned.
(4) Computed in accordance with FRB and FDIC guidelines.
