State Bank Corp Exceeds Net Income of $1.5 Million in 2013

State Bank Corp Exceeds Net Income of $1.5 Million in 2013

LAKE HAVASU CITY, Ariz., Jan. 31, 2014 (GLOBE NEWSWIRE) -- State Bank Corp.
(OTCBB:SBAZ)("Company"), the holding company for Mohave State Bank ("Bank"),
today announced net income of $454,000 or $0.08 per diluted share, for the
quarter ended December 31, 2013, as compared to net income of $358,000, or
$0.06 per diluted share, for the same period of 2012. For the year ended
December 31, 2013, the Company reported net income of $1.54 million, or $0.26
per diluted share, as compared to net income of $1.02 million, or $0.18 per
diluted share, in the same period of 2012.

Highlights for the fourth quarter and year 2013 include:

  *Fourth quarter net income increased by 27% in 2013 from the same period of
    2012. Year over year net income increased by 51%.
  *Nonperforming assets decreased by another $838,000 during the fourth
    quarter lowering the Bank's classified asset ratio to 89% at December 31,
    2013 from 150% at December 31, 2012.
  *The Company experienced annual balance sheet growth for the first time in
    five years driven by a strong increase in core deposits.
  *The Bank's Mortgage Division established a new record of $46.4 million in
    loan production and recorded a net operating profit of $496,000 in 2013.

"Several factors were important keys to our success in 2013: another
outstanding year in mortgage banking, lower nonperforming assets, increased
SBA/USDA loan gains, and modest balance sheet growth," commented Brian M.
Riley, President & CEO. "As our recovery plan unfolds, we have positioned the
Company to benefit from improvement in local business conditions." 

With real estate values continuing to stabilize and the credit environment
improving, the Company was not required to provide any additional loan loss
reserves during the fourth quarter.The Company provided $225,000 to its loan
loss reserve during 2013.Net credit recoveries during the fourth quarter of
2013 were $115,000 as compared to net credit losses of $8,000 for the same
period of 2012.For the year, net credit losses were $619,000, or 0.30% of
beginning loans, in 2013 as compared to $1.6 million, or 0.80% of beginning
loans, in 2012.

Nonperforming assets were $23.5 million at December 31, 2013, a decrease of
$4.1 million from $27.6 million at December 31, 2012.Nonperforming assets
represented 8.15% of total assets at December 31, 2013 as compared to 9.99% at
December 31, 2012.The allowance for loan and lease losses totaled $3.62
million, or 1.81% of total loans, at December 31, 2013.The Company continues
to carefully monitor its level of loss reserves and will proactively make
additions as necessary.

Despite a persistent low interest rate environment, the Company's net interest
margin continues to remain strong with fourth quarter 2013 results of 4.24%,
down from 4.29% in the same period of 2012.The main component to this trend
continues to be the decline in costs of funds, which decreased to 0.27% for
the three months ended December 31, 2013.For the year, the net interest
margin was 4.22% in 2013 as compared to 4.25% in 2012.

As of December 31, 2013, total assets were $287.9 million, an increase of
$12.0 million from $275.9 million at December 31, 2012.Loans held for
investment were $199.4 million at December 31, 2013 as compared to $202.2
million at December 31, 2012.Total deposits were $252.0 million at December
31, 2013 as compared to $239.7 million at December 31, 2012.The Bank
experienced core deposit growth of $24.5 million in 2013.

Shareholder equity increased to $29.6 million at December 31, 2013 from $28.5
million at December 31, 2012. This was a result of strong 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 December 31, 2013:

                                              Ratio to be Consent
                                      Actual well        Order
                                       Ratio  capitalized Requirement
Leverage Ratio                         10.50% 5.00%       9.25%
Tier 1 Capital to Risk-Weighted Assets 13.33% 6.00%       N/A
Total Capital to Risk-Weighted Assets  14.58% 10.00%      12.00%

The Company now complies with all capital requirements of its Consent
Order.The Company continues to make progress on reducing classified assets.

About the Company

State Bank Corp., headquartered in Lake Havasu City, Arizona, is the parent
company of Mohave State Bank. Mohave State Bank is a full-service bank
providing deposit and loan products 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 in Lake
Havasu City, Kingman, Bullhead City, and Yuma, Arizona markets. 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 -    12/31/2013 9/30/2013  6/30/2013  3/31/2013  12/31/2012
Unaudited
Performance                                            
Highlights
                                                      
Earnings:                                              
Total revenue
(Net int.
income +       $3,221   $3,324   $3,496   $3,279   $3,330
nonint.
income)
Net interest   $2,653   $2,608   $2,681   $2,597   $2,652
income
Provision for  $--      $--      $225     $--      $--
loan losses
Noninterest    $568     $716     $815     $682     $678
income
Noninterest    $2,767   $2,920   $2,917   $2,952   $2,972
expense
Net income     $454     $404     $354     $327     $358
(loss)
                                                      
Per Share                                              
Data:
Net income     $0.08    $0.07    $0.06    $0.06    $0.06
(loss), basic
Net income
(loss),        $0.08    $0.07    $0.06    $0.06    $0.06
diluted
Cash dividends $--      $--      $--      $--      $--
declared
Book value     $5.04    $4.96    $4.92    $4.89    $4.85
Tangible book  $5.04    $4.96    $4.92    $4.89    $4.85
value
                                                      
Performance                                            
Ratios:
Return on
average        0.64%      0.56%      0.49%      0.45%      0.50%
assets
Return on
average        6.18%      5.57%      4.90%      4.55%      5.08%
equity
Net interest
margin,        4.24%      4.16%      4.33%      4.14%      4.29%
taxable
equivalent
Average cost   0.27%      0.42%      0.38%      0.41%      0.43%
of funds
Average yield  5.23%      5.68%      5.53%      5.28%      5.41%
on loans
Efficiency     85.90%     87.85%     83.44%     90.03%     89.25%
ratio
Non-interest
income to      17.63%     21.54%     23.31%     20.80%     20.36%
total revenue
                                                      
Capital &                                              
Liquidity:
Total equity
to total       10.28%     10.16%     9.93%      9.68%      10.32%
assets (EOP)
Tangible
equity to      10.28%     10.16%     9.93%      9.68%      10.32%
tangible
assets
Total loans to 79.45%     78.31%     74.61%     76.05%     84.53%
total deposits
Mohave State                                           
Bank
Tier 1         10.50%     10.20%     9.89%      9.96%      10.00%
leverage ratio
Tier 1 risk    13.33%     13.17%     13.05%     12.68%     12.24%
based capital
Total risk     14.58%     14.42%     14.31%     13.93%     13.50%
based capital
                                                      
Asset Quality:                                         
Gross          $50      $65      $315     $374     $110
charge-offs
Net
charge-offs    $(115)   $62      $304     $368     $8
(NCOs)
NCO to average
loans,         -0.23%     0.13%      0.61%      0.72%      0.02%
annualized
Non-accrual    $10,968  $9,924   $9,297   $9,965   $10,569
loans
Other real     $12,465  $14,386  $16,430  $16,404  $17,012
estate owned
Repossessed    $--      $--      $--      $--      $--
assets
Non-performing $23,433  $24,310  $25,727  $26,369  $27,581
assets (NPAs)
NPAs to total  8.14%      8.48%      8.86%      8.90%      9.99%
assets
Loans >90 days $39      $--      $100     $27      $--
past due
NPAs + 90 days $23,472  $24,310  $25,827  $26,396  $27,581
past due
NPAs + loans
90 days past   8.15%      8.48%      8.89%      8.91%      9.99%
due to total
assets
Allowance for
loan losses to 1.81%      1.78%      1.86%      1.82%      1.98%
total loans
Allowance for
loan losses to 15.47%     14.44%     13.88%     13.84%     14.57%
NPAs
                                                      
Period End                                             
Balances:
Assets         $287,857 $286,625 $290,377 $296,235 $275,955
Total Loans
(before        $200,220 $196,888 $191,601 $200,272 $202,664
reserves)
Deposits       $252,004 $251,426 $256,810 $263,336 $239,760
Stockholders'  $29,584  $29,120  $28,842  $28,689  $28,478
equity
Common stock
market         $26,113  $20,538  $20,538  $15,383  $14,528
capitalization
Full-time
equivalent     77        80        80        80        83
employees
Shares         5,868,038 5,868,038 5,868,038 5,868,038 5,868,038
outstanding
                                                      
Average                                                
Balances:
Assets         $284,506 $287,844 $291,305 $289,199 $284,658
Earning assets $250,250 $251,041 $254,341 $250,950 $247,056
Total Loans
(before        $202,641 $193,317 $199,577 $203,182 $203,091
reserves)
Deposits       $248,511 $253,239 $258,199 $247,853 $246,759
Other          $5,642   $4,719   $3,426   $11,840  $8,247
borrowings
Stockholders'  $29,395  $29,008  $28,918  $28,722  $28,208
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            12/31/2013 12/31/2012
Consolidated Balance Sheets                           
                                                     
Assets                                                
Cash and cash equivalents                   $1,634   $2,196
Interest bearing deposits                   3,360     5,192
Overnight Funds                             24,395    7,400
Held for maturity securities                37        51
Available for sale securities               27,420    22,890
Total cash and securities                   56,846    37,729
                                                     
Loans held for sale, before reserves        2,554     3,114
Gross loans held for investment             199,444   202,181
Loan loss reserve                           (3,624)   (4,018)
Total net loans                             198,374   201,277
                                                     
Premises and equipment, net                 10,107    10,299
Other real estate owned                     12,465    17,012
Federal Home Loan Bank and other stock      1,268     1,916
Company owned life insurance                5,709     5,554
Other assets                                3,088     2,168
                                                     
Total Assets                                $287,857 $275,955
                                                     
                                                     
Liabilities                                           
Non interest bearing demand                 $58,822  $47,401
Money market, NOW and savings               132,082   119,028
Time deposits <$100K                        27,599    31,294
Time deposits >$100K                        33,501    42,037
Total Deposits                              252,004   239,760
                                                     
Securities sold under repurchase agreements 4,864     5,401
Federal Home Loan Bank advances             --        --
Subordinated debt                           675       675
Total Debt                                  5,539     6,076
                                                     
Other Liabilities                           730       1,641
Total Liabilities                           258,273   247,477
                                                     
                                                     
Shareholders' Equity                                  
Common stock                                25,037    24,577
Accumulated retained earnings               4,470     3,392
Accumulated other comprehensive income      77        509
Total shareholders equity                   29,584    28,478
                                                     
Total liabilities and shareholders' equity  $287,857 $275,955

                                                        
State Bank Corp.                                                          
Statement of Operations                                                   
                                                        
                        For the Quarter Ended Year to Date
Dollars in thousands -   12/31/2013  12/31/2012  12/31/2013 12/31/2012
Unaudited
Statements of Operations                                 
Interest income                                          
Loans, including fees    $2,650    $2,747    $10,739  $10,934
Securities              161        164        631       784
Fed funds and other      14         13         67        64
Total interest income    2,825      2,924      11,437    11,782
                                                        
Interest expense                                         
Deposits                 158        257        840       1,169
Borrowings               14         15         58        68
Total interest expense   172        272        898       1,237
                                                        
Net interest income      2,653      2,652      10,539    10,545
                                                        
Provision for loan       --         --         225       470
losses
Net interest income
after loan loss          2,653      2,652      10,314    10,075
provision
                                                        
Noninterest income                                       
Service charges on       107        118        415       435
deposits
Mortgage loan fees       91         118        438       386
Gain on sale of loans    166        296        941       972
Gain/(Loss) on           (38)       --         (5)       (510)
securities
Other income             242        146        993       575
Total noninterest income 568        678        2,782     1,858
                                                        
Noninterest expense                                      
Salaries and employee    1,185      1,205      5,071     4,828
benefits
Net occupancy expense    81         83         362       325
Equipment expense        49         38         175       175
Data processing          264        258        1,094     970
Director fees & expenses 50         45         201       158
Insurance                29         67         227       269
Marketing & promotion    145        78         524       279
Professional fees        152        102        453       474
Office expense           27         35         113       156
Regulatory assessments   159        164        636       646
OREO and repossessed     547        756        2,348     2,249
assets
Other expenses           79         141        353       387
Total noninterest        2,767      2,972      11,557    10,916
expense
                                                        
Income (loss) before
provision (benefit) for  454        358        1,539     1,017
income taxes
                                                        
Provision (benefit) for  --         --         --        --
income taxes
Net Income (Loss)        $454      $358      $1,539   $1,017
                                                        
                                                        
Per Share Data                                          
Basic EPS               $0.08     $0.06     $0.26    $0.18
Diluted EPS             $0.08     $0.06     $0.26    $0.18
                                                        
Average shares                                           
outstanding
Basic                   5,868,038  5,697,351  5,868,038 5,695,807
Effect of dilutive       --         --         --        98
shares
Diluted                 5,868,038  5,697,351  5,868,038 5,695,905

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

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