State Bank Corp. Reports Third Quarter Results

State Bank Corp. Reports Third Quarter Results

LAKE HAVASU CITY, Ariz., Oct. 25, 2013 (GLOBE NEWSWIRE) -- State Bank Corp.
(OTCBB:SBAZ) ("Company"), the holding company for Mohave State Bank ("Bank"),
today announced net income of $404,000, or $0.07 per diluted share, for the
quarter ended September 30, 2013, as compared to net income of $263,000, or
$0.04 per diluted share, for the same period of 2012. For the nine months
ended September 30, 2013, the Company reported net income of $1.09 million, or
$0.18 per diluted share, as compared to a net income of $659,000, or $0.11 per
diluted share, for the same period of 2012. 

Third Quarter 2013 Highlights include:

  *Highest quarterly net income since 2008.
  *Sold $2.6 million in foreclosed properties, bringing total other real
    estate owned to its lowest level since March of 2009.
  *The Bank's classified asset ratio fell below 100% to 93% after peaking at
    225% in 2010.
  *Gross charge-offs of $65,000, the lowest quarterly level since 2007.
  *$21.1 million in new loan portfolio production.

"Our recovery continues to take hold," commented Brian M. Riley, President &
CEO."Nearly all measures of asset quality improved in the third quarter and
we were able to add over $20 million in new loans.We look forward to more
progress in the future."

The Company was not required to provide any additional loan loss reserves
during the third quarter of 2013 as compared to $100,000 in the same period of
2012.Net credit losses during the third quarter of 2013 were $62,000 as
compared to $173,000 for the same period of 2012.

Nonperforming assets were $24.3 million at September 30, 2013, a decrease of
$3.3 million from $27.6 million at December 31, 2012.Nonperforming assets
represented 8.48 percent of total assets at September 30, 2013 as compared to
9.99 percent at December 31, 2012.The allowance for loan and lease losses
totaled $3.51 million, or 1.78 percent of total loans, at September 30, 2013.

The Company's net interest margin continues to remain strong with third
quarter results of 4.16 percent.The main component to this trend continues to
be the decline in costs of funds, which ended the third quarter at 33 basis
points.

As of September 30, 2013, total assets were $286.6 million, an increase of
$10.7 million from $275.9 million at December 31, 2012.Total loans were
$196.1 million at September 30, 2013 as compared to $202.1 million at December
31, 2012.Total deposits were $251.4 million at September 30, 2013 as compared
to $239.8 million at December 31, 2012. 

Shareholder equity increased to $29.1 million at September 30, 2013 from $28.5
million at December 31, 2012. This was a result of net operating income.The
Bank must meet certain minimum capital requirements to satisfy federal and
state laws.The following table provides the Bank's capital ratio at September
30, 2013:

                                              Ratio to be Consent
                                      Actual well        Order
                                       Ratio  capitalized Requirement
Leverage Ratio                         10.20% 5.00%       9.25%
Tier 1 Capital to Risk-Weighted Assets 13.17% 6.00%       N/A
Total Capital to Risk-Weighted Assets  14.42% 10.00%      12.00%

The Company now complies with all capital requirements of its Consent Order.
The Company continues to make progress in reducing its commercial real estate
credit concentration and classified assets.

About the Company

State Bank Corp., headquartered in Lake Havasu City, Arizona, is the parent
company of Mohave State Bank, the largest locally-owned bank in Mohave County.
Mohave State Bank is a full-service bank providing deposit and loan products,
and convenient on-line banking to individuals, businesses and professionals.
The Bank was established in October 1991, and the holding company was formed
in 2004. The Bank has six full-service branches: two in Lake Havasu City, two
in Kingman, one in Bullhead City, and one in Yuma, Arizona. The Company is
traded over-the-counter as SBAZ. For further information, please visit the web
site: www.mohavestbank.com.

Forward-looking Statements

This press release may include forward-looking statements about State Bank
Corp. and its subsidiary, Mohave State Bank, for which the Company claims the
protection of safe harbor provisions contained in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are based on
management's knowledge and belief as of today and include information
concerning the Company's possible or assumed future financial condition, and
its results of operations and business. Forward-looking statements are subject
to risks and uncertainties. A number of important factors could cause actual
results to differ materially from those in the forward-looking statements.
Those factors include fluctuations in interest rates, government policies and
regulations (including monetary and fiscal policies), legislation, economic
conditions, borrower capacity to repay, operational factors and competition in
the geographic and business areas in which the Company conducts its
operations. All forward-looking statements included in this press release are
based on information available at the time of the release, and the Company
assumes no obligation to update any forward-looking statement.

                    UNAUDITED FINANCIAL STATEMENTS FOLLOW

State Bank Corp.                                                          
Five-Quarter Performance Summary                                          
                                                       
              For the Quarter Ended
Dollars in
thousands -    9/30/2013  6/30/2013  3/31/2013  12/31/2012 9/30/2012
Unaudited
Performance                                            
Highlights
                                                      
Earnings:                                              
Total revenue
(Net int.
income +       $3,324   $3,496   $3,279   $3,330   $2,788
nonint.
income)
Net interest   $2,608   $2,681   $2,597   $2,652   $2,621
income
Provision for  $--      $225     $--      $--      $100
loan losses
Noninterest    $716     $815     $682     $678     $167
income
Noninterest    $2,920   $2,917   $2,952   $2,972   $2,425
expense
Net income     $404     $354     $327     $358     $263
(loss)
                                                      
Per Share                                              
Data:
Net income     $0.07    $0.06    $0.06    $0.06    $0.04
(loss), basic
Net income
(loss),        $0.07    $0.06    $0.06    $0.06    $0.04
diluted
Cash dividends $--      $--      $--      $--      $--
declared
Book value     $4.96    $4.92    $4.89    $4.85    $4.80
Tangible book  $4.96    $4.92    $4.89    $4.85    $4.80
value
                                                      
Performance                                            
Ratios:
Return on
average        0.56%      0.49%      0.45%      0.50%      0.36%
assets
Return on
average        5.57%      4.90%      4.55%      5.08%      3.77%
equity
Net interest
margin,        4.16%      4.33%      4.14%      4.29%      4.05%
taxable
equivalent
Average cost   0.33%      0.38%      0.41%      0.43%      0.45%
of funds
Average yield  5.48%      5.53%      5.28%      5.41%      5.55%
on loans
Efficiency     87.85%     83.44%     90.03%     89.25%     86.98%
ratio
Non-interest
income to      21.54%     23.31%     20.80%     20.36%     5.99%
total revenue
                                                      
Capital &                                              
Liquidity:
Total equity
to total       10.16%     9.93%      9.68%      10.32%     9.72%
assets (EOP)
Tangible
equity to      10.16%     9.93%      9.68%      10.32%     9.72%
tangible
assets
Total loans to 78.31%     74.61%     76.05%     84.53%     79.27%
total deposits
Mohave State                                           
Bank
Tier 1         10.20%     9.89%      9.96%      10.00%     9.57%
leverage ratio
Tier 1 risk    13.17%     13.05%     12.68%     12.24%     12.17%
based capital
Total risk     14.42%     14.31%     13.93%     13.50%     13.43%
based capital
                                                      
Asset Quality:                                         
Gross          $65      $315     $374     $110     $316
charge-offs
Net
charge-offs    $62      $304     $368     $8       $173
(NCOs)
NCO to average
loans,         0.13%      0.61%      0.72%      0.02%      0.35%
annualized
Non-accrual    $9,924   $9,297   $9,965   $10,569  $10,639
loans
Other real     $14,386  $16,430  $16,404  $17,012  $18,287
estate owned
Repossessed    $--      $--      $--      $--      $--
assets
Non-performing $24,310  $25,727  $26,369  $27,581  $28,926
assets (NPAs)
NPAs to total  8.48%      8.86%      8.90%      9.99%      9.97%
assets
Loans > 90     $--      $100     $27      $--      $147
days past due
NPAs + 90 days $24,310  $25,827  $26,396  $27,581  $29,073
past due
NPAs + loans
90 days past   8.48%      8.89%      8.91%      9.99%      10.03%
due to total
assets
Allowance for
loan losses to 1.78%      1.86%      1.82%      1.98%      2.04%
total loans
Allowance for
loan losses to 14.44%     13.88%     13.84%     14.57%     13.92%
NPAs
                                                      
Period End                                             
Balances:
Assets         $286,625 $290,377 $296,235 $275,955 $289,993
Total Loans
(before        $196,888 $191,601 $200,272 $202,664 $196,919
reserves)
Deposits       $251,426 $256,810 $263,336 $239,760 $248,428
Stockholders'  $29,120  $28,842  $28,689  $28,478  $28,184
equity
Common stock
market         $20,538  $20,538  $15,383  $14,528  $14,243
capitalization
Full-time
equivalent     80        80        80        83        81
employees
Shares         5,868,038 5,868,038 5,868,038 5,868,038 5,868,038
outstanding
                                                      
Average                                                
Balances:
Assets         $287,844 $291,305 $289,199 $284,658 $293,905
Earning assets $251,041 $254,341 $250,950 $247,056 $258,891
Total Loans
(before        $193,317 $199,577 $203,182 $203,091 $196,513
reserves)
Deposits       $253,239 $258,199 $247,853 $246,759 $252,687
Other          $4,719   $3,426   $11,840  $8,247   $12,047
borrowings
Stockholders'  $29,008  $28,918  $28,722  $28,208  $27,925
equity
Shares
outstanding,   5,868,038 5,868,038 5,868,038 5,868,038 5,868,038
basic - wtd
Shares
outstanding,   5,868,038 5,868,038 5,868,038 5,868,038 5,868,038
diluted - wtd

                                                     
State Bank Corp.                                                   
Balance Sheets                                                     
                                                     
Dollars in thousands - Unaudited            9/30/2013  12/31/2012
Consolidated Balance Sheets                           
                                                     
Assets                                                
Cash and cash equivalents                   $1,964   $2,196
Interest bearing deposits                   3,987     5,192
Overnight Funds                             23,200    7,400
Held for maturity securities                40        51
Available for sale securities               27,917    22,890
Total cash and securities                   57,108    37,729
                                                     
Loans held for sale, before reserves        2,484     3,114
Gross loans held for investment             196,086   202,181
Loan loss reserve                           (3,510)   (4,018)
Total net loans                             195,060   201,277
                                                     
Premises and equipment, net                 10,166    10,299
Other real estate owned                     14,386    17,012
Federal Home Loan Bank and other stock      1,392     1,916
Company owned life insurance                5,673     5,554
Other assets                                2,840     2,168
                                                     
Total Assets                                $286,625 $275,955
                                                     
                                                     
Liabilities                                           
Non interest bearing demand                 $51,207  $47,401
Money market, NOW and savings               135,185   119,028
Time deposits < $100K                       29,075    31,294
Time deposits > $100K                       35,959    42,037
Total Deposits                              251,426   239,760
                                                     
Securities sold under repurchase agreements 4,399     5,401
Federal Home Loan Bank advances             --        --
Subordinated debt                           675       675
Total Debt                                  5,074     6,076
                                                     
Other Liabilities                           1,005     1,641
Total Liabilities                           257,505   247,477
                                                     
                                                     
Shareholders' Equity                                  
Common stock                               25,037    24,577
Accumulated retained earnings              4,016     3,392
Accumulated other comprehensive income     67        509
Total shareholders equity                   29,120    28,478
                                                     
Total liabilities and shareholders' equity  $286,625 $275,955

                                                        
State Bank Corp.                                                          
Statement of Operations                                                   
                                                        
                        For the Quarter Ended Year to Date
Dollars in thousands -   9/30/2013   9/30/2012   9/30/2013  9/30/2012
Unaudited
Statements of Operations                                 
Interest income                                          
Loans, including fees    $2,647    $2,726    $8,089   $8,187
Securities              155        174        469       619
Fed funds and other      18         21         53        51
Total interest income    2,820      2,921      8,611     8,857
                                                        
Interest expense                                         
Deposits                 198        284        682       912
Borrowings               14         16         43        52
Total interest expense   212        300        725       964
                                                        
Net interest income      2,608      2,621      7,886     7,893
                                                        
Provision for loan       --         100        225       470
losses
Net interest income
after loan loss          2,608      2,521      7,661     7,423
provision
                                                        
Noninterest income                                       
Service charges on      106        108        308       317
deposits
Mortgage loan fees      113        118        347       267
Gain on sale of loans   231        298        775       676
Gain on sale of         --         (511)      33        (510)
securities
Other income             266        154        751       429
Total noninterest income 716        167        2,214     1,179
                                                        
Noninterest expense                                      
Salaries and employee    1,288      1,245      3,886     3,624
benefits
Net occupancy expense    109        88         281       242
Equipment expense        39         39         126       138
Data processing          278        235        830       712
Director fees & expenses 55         36         151       113
Insurance                65         67         198       202
Marketing & promotion    153        57         378       201
Professional fees        128        132        301       371
Office expense           27         41         86        121
Regulatory assessments   163        167        478       481
OREO and repossessed     535        228        1,801     1,493
assets
Other expenses           80         90         274       245
Total noninterest        2,920      2,425      8,790     7,943
expense
                                                        
Income (loss) before
provision (benefit) for  404        263        1,085     659
income taxes
                                                        
Provision (benefit) for  --         --         --        --
income taxes
Net Income (Loss)        $404      $263      $1,085   $659
                                                        
                                                        
Per Share Data                                         
Basic EPS              $0.07     $0.04     $0.18    $0.11
Diluted EPS            $0.07     $0.04     $0.18    $0.11
                                                        
Average shares                                          
outstanding
Basic                  5,868,038  5,868,038  5,868,038 5,865,914
Effect of dilutive      --         --         --        134
shares
Diluted                5,868,038  5,868,038  5,868,038 5,866,048

CONTACT: Brian M. Riley, President & CEO
         Craig Wenner, EVP/Chief Financial Officer
         Phone: (928) 855-0000

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