SSBX News Silver State Bancorp Reports Third Quarter Net Income of $5.6 Million or $.40 Per Share
HENDERSON, Nev.--(BUSINESS WIRE)--Silver State Bancorp (OTCBB:SSBX) announced today its financial results
for the third quarter 2006.
Third Quarter 2006 Highlights:
Net income of $5,643,000, up $908,000 or 19.2% from the third quarter
2005.
Diluted earnings per share up 11.1% to $.40 compared to $.36 in the
third quarter 2005.
Annualized return on equity of 25.45% for the nine months ended
September 30, 2006.
Annualized return on assets of 2.22% for the nine months ended
September 30, 2006.
Loan growth up $340,974,000 or 57.7% year over year, $274,203,000 or
41.7% year to date and $137,694,000 or 17.3% for the third quarter.
Completed merger with Choice Bank on September 5, 2006. Our
consolidated statement of income includes the operating results of
Choice Bank since September 5, 2006.
Silver State Bancorp reported net income of $5,643,000 or $.40 per
diluted share for the three months ended September 30, 2006. This
represents an increase of $908,000 or 19.2% when compared to net income
of $4,735,000 or $.36 per diluted share for the third quarter of 2005
and an increase of $530,000 or 10.4% when compared to the second quarter
of 2006.
For the nine months ended September 30, 2006, net income was $15,199,000
or $1.12 per diluted share, representing an increase of $3,032,000 or
24.9% when compared to net income of $12,167,000 or $.93 per diluted
share for the first nine months of 2005.
Total assets were $1.15 billion at September 30, 2006, a year over year
increase of $358 million or 45.2%, a year to date increase of $344
million or 42.6% and a quarterly increase of $197 million or 20.6%
Total loans grew $138 million ($40 million organic) or 17.3% during the
quarter and were reported at $932 million at September 30, 2006. The
year-over-year and year-to-date increase in loans was $341 million ($243
million organic) or 57.7% and $274 million ($176 million organic) or
41.7%, respectively.
Silver State Bancorp’s annualized return on
average equity and return on average assets for the third quarter of
2006 was 24.9% and 2.3%, respectively.
“I am very pleased with the financial results
for the third quarter,” said Corey L. Johnson,
President and Chief Executive Officer. “With
the successful closing of Choice Bank, we are now operating banking
subsidiaries in two very attractive markets. The primary economic
indicators that impact our business model in both our primary and
secondary markets remain positive. The company continues to provide an
above average return to our shareholders, and despite interest rate and
competitive pressures we look forward to this ongoing trend. We will be
opening our 10th branch in our primary market later this month and we
are actively seeking expansion opportunities in the Phoenix area. Our
employees are our greatest resource and I would like to thank all of
them for their continued hard work and dedication.”
Operating Results
Total interest income increased $8.2 million or 52.5% to $23.8 million
during the three months ended September 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 third quarter of 2006 increased by $4.8
million or 111.0% as compared to the third quarter of 2005, a result of
an overall increase in interest bearing deposit balances, coupled with
an increase in the average cost of such funds.
Net interest income was $14.6 million for the three months ended
September 30, 2006 as compared to $11.2 for the same period of 2005, an
increase of $3.3 million or 29.8%
The company’s net interest margin was 6.40%
for the third quarter of 2006, compared to 6.04% for the third quarter
of 2005 and 6.45% for the second quarter of 2006. Year to date net
interest margin for the nine months ended September 30, 2006 was 6.30%.
Total non-interest income was $1.7 million for the three months ended
September 30, 2006, an increase of $556 thousand or 47.1% when compared
to the three months ended September 30, 2005. This increase is
attributable primarily to an increase in gain on sales of loans which
were $1.3 million during the third quarter of 2006, an increase of $250
thousand from the third quarter of 2005. Gain on sales of loans was $694
million during the second quarter of 2006. The remaining increase is due
primarily to a reduction in servicing asset amortization of $248
thousand, as a result of a reduction in prepayments on serviced loans in
2006 as compared to 2005.
Non-interest expense was $6.8 million for the third quarter of 2006, an
increase of $2.2 million or 48.4% compared to the third quarter of 2005.
Salaries and employee benefit costs increased $1.2 million or 43.6% from
$2.7 million for the third quarter of 2005 to $3.9 million for the third
quarter of 2006 as a result of additional employees and increased
benefit costs. Occupancy expense increased $273 thousand from the
quarter ended September 30, 2006 compared to the same period in 2005
primarily due to costs associated with the addition of Silver State Bank’s
new administration center. Additional salaries, occupancy and other
costs associated with the Choice Bank acquisition were $317 thousand.
Expenses associated with the implementation of FAS 123R, Share-based
payment, were $175 thousand in the quarter ended September 30, 2006
as compared to $0 for the same period of 2005. The remaining increase is
due primarily to an increase in accounting, legal and other professional
fees.
Balance Sheet
Gross loans totaled $932.2 million at September 30, 2006, a year to date
increase of $274.2 million or 41.7% and an increase of $341.0 million or
57.7 % from September 30, 2005. Total loans acquired as a result of the
Choice Bank acquisition were $97.6 million. The allowance for loan
losses represents 1.13% of gross loans at September 30, 2006 compared to
1.26% at December 31, 2005 and 1.31% at September 30, 2005. The decrease
in the percentage of allowance for loan losses to gross loans in the
third quarter of 2006 was primarily due to a change in the nature and
composition of the allowance as a result of the Choice Bank acquisition.
Additionally, the Company charged off of a $400 thousand impaired loan
in the third quarter 2006.
Total deposits were $931.7 million at September 30, 2006, an increase of
$286.3 million or 44.3% from December 31, 2005 and an increase of $269.0
million or 40.6% from September 30, 2005. Total deposits acquired as a
result of the Choice Bank acquisition were $103.8 million.
Stockholders’ equity increased $10.0 million
or 11.3% for the quarter ended September 30, 2006. The increase in
stockholders’ equity is a result of the company’s
$5.6 million net income for the quarter, $1.3 million provided as a
result of stock option exercises, $2.8 million provided as a result of
the Choice Bank acquisition and $300 thousand decrease in other
comprehensive loss. Total stockholders’
equity was 8.6% of total assets at September 30, 2006, compared to 7.9%
at December 31, 2005 and 7.3% at September 30, 2005. Book value per
share was $7.32 at September 30, 2006, compared to $5.11 at December 31,
2005 and $4.66 at September 30, 2005.
The company is considered “well-capitalized”
pursuant to regulatory capital definitions at September 30, 2006.
About Silver State Bancorp
Silver State Bancorp, through its wholly-owned subsidiaries, Silver
State Bank and Choice Bank, operates nine full service branches in
southern Nevada and two full service branches in Phoenix, Arizona.
Silver State Bank also operates seven loan production offices located in
Nevada, California, Washington, Oregon, Utah 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
