22A — November 22 - December 12, 2019 — M id A tlantic
Real Estate Journal
www.marej.com
M id A tlantic R eal E state J ournal
Anthony Labozzetta is the president and CEO of SB One Bancorp and SB One Bank SB One Bancorp reports a 57% increase in net income and diluted EPS of $0.55 for 3rd Qtr. 2019 C ont. from page 3A
98.1%, to $636 thousand for the third quarter of 2019, as compared to $321 thousand for the same period in 2018. Provision for loan losses increased $756 thousand, or 61.6%, to $2.0 million for the first nine months of 2019, as compared to $1.2 million for the same period in 2018. Non-interest Income. Non- interest income increased $585 thousand, or 23.2%, to $3.1 million for the third quarter of 2019, as compared to the same period in 2018. The growth was largely due to an increase in in- surance commissions and fees relating to SB One Insurance Agency of $297 thousand, or 19.4%, for the third quarter of 2019, as compared to the same period in 2018. Non-interest income in- creased $2.9 million, or 34.8%, to $11.1million for the first nine months of 2019 as compared to the same period last year. The increase was principally due to $1.2 million increase in in- surance commissions and fees relating to SB One Insurance Agency, and a $1.5 million increase in gains on sale of securities. The aforementioned increases were partially offset by a $292 thousand loss on the disposal of fixed assets relat- ing to closing of the Company’s corporate center in Rockaway, NJ, and the sale of the Andover branch. Non-interest Expense. The Company’s non-interest expenses increased $1.2 mil- lion, or 13.7%, to $10.2 million for the third quarter of 2019, as compared to the same pe- riod in 2018. The increase in non-interest expenses occurred largely in salaries and employ- ee benefits of $1.2 million, data processing of $290 thousand and expenses and write-downs related to foreclosed real estate of $152 thousand. The increase in non-interest expenses for the third quarter of 2019, as compared to the same period in 2018, was the result of the Company’s continued growth, inclusive of the Enterprise merger net of cost savings. The increase in expenses and write- downs related to foreclosed real estate was driven by a one-time charge for write-downs of $149 thousand on three properties. The aforementioned increases were partially offset by de- creases in professional fees and FDIC assessment costs of $111 thousand and $45 thousand, respectively. The Company’s non-interest
expenses increased $754 thou- sand, or 2.5%, to $30.9 million for the first nine months of 2019 as compared to the same period last year. The increase in non-interest expenses was primarily due to increases in salaries and employee benefits of $3.2 million, occupancy of $518 thousand and data pro- cessing of $499 thousand. The aforementioned increase was partially offset by a decrease in merger related expenses of $4.3 million. Income Tax Expense. The Company’s income tax expens- es increased $863 thousand to $1.8 million for the third quarter of 2019, as compared to the same period last year. The Company’s effective tax rate for the third quarter of 2019 was 26.1%, as compared to 22.6% for the same period in 2018. The Company’s income tax expenses increased $3.1 million to $5.2 million for the first nine months of 2019, as compared to the same period last year as a result of increased pre-tax income. The Company’s effec- tive tax rate for the first nine months of 2019 was 23.1%, as compared to 21.5% for the nine months ended September 30, 2018. Financial Condition At September 30, 2019, the Company’s total assets were $1.9 billion, an increase of $138.6 million, or 7.7%, as compared to total assets of $1.8 billion at December 31, 2018. The increase was mainly attributable to an increase in loans receivable of $88.8 mil- lion, or 6.0%, to $1.6 billion. The Company’s total depos- its increased $172.9 million, or 12.8%, to $1.5 billion at September 30, 2019, from $1.4 billion at December 31, 2018. The growth in deposits was mostly due to an increase in interest bearing deposits of $157.0 million, or 14.3%, and an increase in non-interest bearing deposits of $15.9 mil- lion, or 6.1%, at September 30, 2019, as compared to Decem- ber 31, 2018. At September 30, 2019, the Company’s total stockholders’ equity was $196.1 million, an increase of $10.6 million when compared to December 31, 2018. At September 30, 2019, the leverage, Tier I risk-based capital, total risk-based capi- tal and common equity Tier I capital ratios for the Bank were 10.22%, 12.00%, 12.61% and 12.00%, respectively, all in excess of the ratios required to
be deemed “well-capitalized. Asset and Credit Quality The ratio of non-performing assets (“NPAs”), which include non-accrual loans, loans 90 days past due and still accru- ing, troubled debt restructured loans currently performing in accordance with renegotiated terms and foreclosed real es- tate, to total assets decreased to 0.87% at September 30, 2019 as compared to 1.43% at December 31, 2018. The decrease in NPAs is mainly at- tributable to the payoff of two non-accrual commercial real estate loans totaling approxi- mately $8.9 million. NPAs ex- clude $3.0 million of Purchased Credit-Impaired (“PCI”) loans acquired through the merger with Community Bank of Bergen County (“Community Bank”). NPAs decreased $8.9 million to $16.9 million at Sep- tember 30, 2019, as compared to $25.8 million at December 31, 2018. Non-accrual loans, excluding $3.0 million of PCI loans, decreased $8.7 million, or 41.9%, to $12.0 million at September 30, 2019, as compared to $20.7 million at December 31, 2018. Loans past due 30 to 89 days totaled $5.5 million at September 30, 2019, representing an increase of $1.7 million, or 45.8%, as compared to $3.8 million at December 31, 2018. The Company continues to actively market its foreclosed real estate properties, the value of which decreased $549 thousand to $3.6 million at September 30, 2019 as com- pared to $4.1 million at Decem- ber 31, 2018. The decrease in foreclosed real estate proper- ties was largely attributable to the sale of six properties totaling $1.5 million which 3 weeks, $50K in 8 weeks and $92K in 6 weeks. And those are just some of the many, many examples I could share. What makes us different? And again, this goes back to asking the RIGHT question, the DEEPER question, is not just our distilled tactics. It’s the fact that when we work with clients, we do so on a con- scious tactical level and also on a subconscious level. We have a hypnotherapist on our team and one of the most powerful things we do is help clients break through the limiting beliefs they’ve been carrying
was partially offset by two new foreclosed properties valued at $1.1 million. At Septem- ber 30, 2019, the Company’s foreclosed real estate proper- ties had an average carrying value of approximately $400 thousand per property. The Company’s allowance for loan losses increased $975 thousand, or 11.1%, to $9.8 million, at September 30, 2019 as compared to $8.8 mil- lion at December 31, 2018. The Company’s outstanding credit mark recorded on the legacy Community Bank and Enterprise portfolios of $433.8 million totaled $6.8 million at September 30, 2019. The Com- pany’s combined coverage of al- lowance for loan loss and credit mark on the legacy Community Bank and Enterprise portfolios totaled $16.8 million, or 1.05% of the overall loan portfolio, at September 30, 2019. The Com- pany recorded $2.0 million in provision for loan losses for the nine months ended September 30, 2019 as compared to $1.2 million for the nine months ended September 30, 2018. Additionally, the Company recorded net charge-offs of $1.0 million for the nine months ended September 30, 2019, as compared to $33 thousand in net recoveries for the nine months ended September 30, 2018. The allowance for loan losses as a percentage of non- accrual loans increased to 81.1% at September 30, 2019 from 43.5% at December 31, 2018. SB One Bancorp is the holding company for SB One Bank, a full-service, commercial bank that op- erates regionally with 18 branch locations in New Jersey and New York. around – the ones that jam their intuition and prevent them from closing sales with ideal prospects. We use press and FB ads to bring clients into our funnel, Infusionsoft for email market- ing, ScheduleOnce to schedule epiphany calls, Wufoo for our application form and Every webinar to run our online mas- terclass. Stripe and Paypal to process payments. Simple and clean. Geeta Nadkarni is an expert in the field of public- ity, marketing, and helping small business owners to grow their businesses.
utable to an increase in salaries and employee benefits of $1.2 million re- sulting from the merger with Enterprise and the continued growth of the Company. In addition, data processing in- creased $290 thousand and write-downs related to fore- closed real estate increased $152 thousand. The increase in non-interest expenses was partially offset by a decrease in merger related expenses of $605 thousand as compared to the same quarter of 2018. For the nine months ended September 30, 2019, the Com- pany reported net income of $17.2 million, or $1.84 per basic share and $1.83 per diluted share, an increase of 127.4%, as compared to net income of $7.6 million, or $0.97 per basic share and $0.96 diluted share, for the same period last year. Net Interest Income. Net interest income on a fully tax equivalent basis increased $3.5 million, or 31.5%, to $14.8 million for the third quarter of 2019, as compared to $11.2 million for the same period in 2018. The increase in net inter- est income was largely due to a $440.4 million, or 32.5%, in- crease in average interest earn- ing assets, principally loans receivable, which increased $395.8 million, or 34.3%, led by organic growth and the Decem- ber 2018 closing of the Enter- prise merger. The net interest margin decreased 3 basis points to 3.26% for the third quarter of 2019, as compared to the same period in 2018, as a result of an increase in cost of funds of 44 basis points mainly due to a surge in rates on deposits. The increase in the Company’s cost of funds was partially offset by an increase in yield on earning assets of 34 basis points driven by an increase in yields on loans receivable of 42 basis points. Net interest income on a fully tax equivalent basis increased $11.2 million, or 33.5%, to $44.6 million for the first nine months of 2019 as compared to $33.4 million for the same period in 2018. The increase in net inter- est income was largely due to a $446.1 million, or 34.2%, in- crease in average interest earn- ing assets, principally loans receivable, which increased $412.2 million, or 37.1%, driven by organic growth and the En- terprise merger. Provision for Loan Losses. Provision for loan losses in- creased $315 thousand, or
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