SP Bancorp reports improved 4Q results
SP Bancorp Inc, the holding company for SharePlus Federal Bank today announced financial results for the Company's fourth quarter and the year ended December 31, 2012. Net income was $458,000, or $0.30 per share, for the fourth quarter of 2012, which brought 2012 net income to $1,514,000, or $0.97 per share.
We are pleased to report a solid fourth quarter as well as a significant improvement over last year's performance. Our 2012 net income increased $579,000 or 62% over 2011. Our mortgage and commercial loan production along with growth in our mortgage warehouse portfolio all contributed to the earnings improvement, said President and CEO Jeff Weaver.
Fourth quarter net income increased $290,000 or 172.6%: Net income increased to $458,000 for the three months ended December 31, 2012, compared to $168,000 for the three months ended December 31, 2011. Fourth quarter noninterest income increased $174,000: Noninterest income for the three months ended December 31, 2012 increased to $1.1 million, compared to $882,000 for the three months ended December 31, 2011, driven primarily by gains from the sale of mortgage loans. Deposits increased $20.4 million or 9.6% over the December 2011 balances: Deposits increased to $232.3 million at December 31, 2012 from $211.9 million at December 31, 2011. Additional deposits from existing consumer and business customers accounted for the majority of the increase.
Stockholders' equity remained strong: The Company reported $33.0 million in stockholders' equity at December 31, 2012, a decrease of $87,000, compared to $33.1 million at December 31, 2011. Stockholders' equity declined slightly as a result of repurchases of common stock of $1.2 million and ESOP shares purchased in the open market of $373,000, partially off- set by net income of $1.5 million for the twelve months ended December 31, 2012.
The increase in net income for the quarter ended December 31, 2012 reflected a decrease of $34,000 in net interest income, a $477,000 decrease in the provision for loan losses and a $174,000 increase in noninterest income, partially offset by increases in noninterest expense of $93,000 and income taxes of $234,000.
Net interest income decreased $34,000, or 1.3%, to $2.5 million for the quarter ended December 31, 2012 from $2.6 million for the quarter ended December 31, 2011. Our net interest-earning assets increased to $42.4 million from $25.4 mil- lion. In contrast, our net interest rate spread decreased to 3.61% from 3.86%, and we experienced a 22 basis point decrease in our net interest margin to 3.70% from 3.92%.
We recorded a provision for loan losses of $161,000 for the quarter ended December 31, 2012, compared to a provision for loan losses of $638,000 for the quarter ended December 31, 2011. The decrease in the provision for loan losses was primarily attributable to a higher degree of loss exposures in the fourth quarter of 2011.
Non interest income increased $174,000, or 19.7%, to $1.1 million for the quarter ended December 31, 2012 from $882,000 for the quarter ended December 31, 2011. The increase was due primarily to an increase in gains from the sale of mortgage loans. Non interest expense increased $93,000, or 3.5%, to $2.7 million for the quarter ended December 31, 2012 from $2.7 million for the quarter ended December 31, 2011. The increase was primarily due to an increase in compensation and benefits (including mortgage commissions), professional and outside services and FDIC insurance assessments, partially offset by a decrease in provisions for losses on OREO, equipment expense, operations from OREO and other noninterest expense.