State Bancorp, Inc. Reports First Quarter Earnings Gain

Apr 20, 2001, 01:00 ET from State Bancorp, Inc.

    NEW HYDE PARK, N.Y., April 20 /PRNewswire/ -- The Board of Directors of
 State Bancorp, Inc. (Amex:   STB), parent company of State Bank of Long Island,
 today reported first quarter net income of $2,772,000, a 2.1% improvement over
 the comparable 2000 quarter.  The increase in earnings resulted from growth in
 net interest income of 7.8% coupled with reductions in the provision for loan
 losses and net security losses along with a lower effective income tax rate in
 2001. Growth in average interest-earning assets (up 11.9%), primarily
 resulting from growth in the Company's loan portfolio, coupled with a nominal
 increase in the net interest rate margin to 4.46%, was responsible for the
 growth in net interest income.  Growth in most loan categories, principally
 commercial loans and commercial mortgages, accounted for the foregoing asset
 growth. Somewhat offsetting these positive factors were higher noninterest
 expenses and a reduction in noninterest income.  First quarter 2001 returns on
 average assets and average stockholders' equity were 1.10% and 14.98%,
 respectively, versus 1.18% and 19.63% a year ago.  Excluding valuations
 related to SFAS No. 115, returns on average stockholders' equity would have
 been 14.74% and 15.65% in 2001 and 2000, respectively.  For the quarter ended
 March 31, basic and diluted earnings per common share were $0.37 and $0.36 in
 2001 and $0.36 for each in 2000, respectively.  First quarter earnings include
 the results of Studebaker-Worthington Leasing Corp., a leasing company
 acquired by State Bank of Long Island in February 2001.
     (LOGO:  http://www.newscom.com/cgi-bin/prnh/20000727/STBLOGO )
     As of March 31, 2001, total loans and leases outstanding amounted to
 $544 million, up 11.7% over the comparable prior year period.  Total deposits
 at the same date were $856 million, an increase of 9.1% versus a year ago.
 Stockholders' equity totaled $77.2 million at March 31, 2001, versus
 $57.4 million at March 31, 2000. Excluding valuations related to SFAS No. 115,
 stockholders' equity grew at a year-to-year rate of 7.7% to $76.0 million in
 2001 from $70.6 million a year ago.
     State Bancorp's Tier I leverage ratio was 7.23% and 7.45% at
 March 31, 2001 and 2000, respectively. This ratio is well in excess of the
 current regulatory guidelines for a well-capitalized institution. The
 allowance for loan losses as a percentage of loans outstanding was 1.81% at
 March 31, 2001, 1.85% at December 31, 2000 and 1.51% at March 31, 2000.
     State Bancorp's sole subsidiary, State Bank of Long Island, the largest
 independent commercial bank headquartered in Nassau County, currently operates
 full service banking offices in ten locations throughout Nassau and Suffolk
 counties: New Hyde Park, Jericho, Oyster Bay, Rockville Centre, Garden City
 South, Huntington, Hauppauge, Farmingdale, Holbrook and East Setauket.  New
 branch facilities are expected to open during the second quarter of 2001 in
 Mineola (Nassau) and in the Bulova Corporate Center (Queens). The Bank also
 expects to open additional Queens County branches in Maspeth and Long Island
 City during the second half of 2001.  In addition, the Bank also maintains a
 lending facility in Jericho and has two subsidiaries based in Wilmington,
 Delaware, which provide investment and balance sheet management services to
 the Bank.  The Company maintains a World Wide Web site at
 http://www.statebankofli.com with corporate, investor and branch banking
 information.
 
                              STATE BANCORP, INC.
                              FINANCIAL HIGHLIGHTS
                     (In thousands, except per share data)
 
 
                                                       THREE MONTHS ENDED:
     INCOME STATEMENT SUMMARY:                       03/31/01       03/31/00
 
     INTEREST INCOME                                  $19,217        $17,599
     INTEREST EXPENSE                                   9,096          8,207
      NET INTEREST INCOME                              10,121          9,392
     PROVISION FOR LOAN LOSSES                            773          1,000
      NET INTEREST INCOME AFTER PROVISION
      FOR LOAN LOSSES                                   9,348          8,392
     NON-INTEREST INCOME                                  664            813
     NET SECURITY LOSSES                                 (10)           (89)
     NONINTEREST EXPENSE                                6,571          5,304
     INCOME BEFORE INCOME TAXES                         3,431          3,812
     PROVISION FOR INCOME TAXES                           659          1,096
 
       NET INCOME                                      $2,772         $2,716
 
       BASIC EARNINGS PER COMMON SHARE *                $0.37          $0.36
 
       DILUTED EARNINGS PER COMMON SHARE *              $0.36          $0.36
 
 
     SELECTED AVERAGE BALANCES:
 
     TOTAL ASSETS                                  $1,019,429       $922,079
 
     LOANS - NET OF UNEARNED INCOME                   522,613        483,728
 
     INVESTMENT SECURITIES                            364,978        381,632
 
     DEPOSITS                                         922,250        814,363
 
     STOCKHOLDERS' EQUITY                              75,036         55,656
 
     COMMON SHARES OUTSTANDING *                    7,530,261      7,532,793
 
     FINANCIAL PERFORMANCE RATIOS:
 
     RETURN ON AVERAGE ASSETS                          1.10 %         1.18 %
 
     RETURN ON AVERAGE STOCKHOLDERS' EQUITY             14.98          19.63
 
     NET INTEREST MARGIN (FTE)                           4.46           4.45
 
     OPERATING EFFICIENCY RATIO                         57.30          50.40
 
     NET CHARGE-OFFS (ANNUALIZED) / AVERAGE LOANS        0.44           0.63
 
 
     PERIOD-END FINANCIAL DATA:
 
                           03/31/01      12/31/00     03/31/00      12/31/99
 
 
     TOTAL ASSETS          $993,766    $1,021,223     $927,654      $949,829
 
     LOANS - NET OF
      UNEARNED INCOME       544,489       496,992      487,452       488,948
 
     INVESTMENT SECURITIES  339,712       418,591      391,993       377,431
 
     DEPOSITS               855,913       895,107      784,655       804,463
 
     STOCKHOLDERS' EQUITY    77,158        72,307       57,449        56,103
 
     STOCKHOLDERS' EQUITY
      / TOTAL ASSETS         7.76 %        7.08 %       6.19 %        5.91 %
     COMMON SHARES
      OUTSTANDING *       7,475,977     7,527,383    7,534,645     7,519,614
 
     TIER I LEVERAGE RATIO   7.23 %        7.57 %       7.45 %        7.02 %
     ALLOWANCE FOR LOAN
      LOSSES / TOTAL LOANS   1.81 %        1.85 %       1.51 %        1.45 %
     BOOK VALUE PER SHARE
      (INCL. SFAS 115) *     $10.32         $9.61        $7.62         $7.46
 
     BOOK VALUE PER SHARE
      (EXCL. SFAS 115) *     $10.17        $10.00        $9.54         $9.12
 
     * Prior period data has been restated to give retroactive effect to a 8%
 stock dividend declared on May 23, 2000.
 
 

SOURCE State Bancorp, Inc.
    NEW HYDE PARK, N.Y., April 20 /PRNewswire/ -- The Board of Directors of
 State Bancorp, Inc. (Amex:   STB), parent company of State Bank of Long Island,
 today reported first quarter net income of $2,772,000, a 2.1% improvement over
 the comparable 2000 quarter.  The increase in earnings resulted from growth in
 net interest income of 7.8% coupled with reductions in the provision for loan
 losses and net security losses along with a lower effective income tax rate in
 2001. Growth in average interest-earning assets (up 11.9%), primarily
 resulting from growth in the Company's loan portfolio, coupled with a nominal
 increase in the net interest rate margin to 4.46%, was responsible for the
 growth in net interest income.  Growth in most loan categories, principally
 commercial loans and commercial mortgages, accounted for the foregoing asset
 growth. Somewhat offsetting these positive factors were higher noninterest
 expenses and a reduction in noninterest income.  First quarter 2001 returns on
 average assets and average stockholders' equity were 1.10% and 14.98%,
 respectively, versus 1.18% and 19.63% a year ago.  Excluding valuations
 related to SFAS No. 115, returns on average stockholders' equity would have
 been 14.74% and 15.65% in 2001 and 2000, respectively.  For the quarter ended
 March 31, basic and diluted earnings per common share were $0.37 and $0.36 in
 2001 and $0.36 for each in 2000, respectively.  First quarter earnings include
 the results of Studebaker-Worthington Leasing Corp., a leasing company
 acquired by State Bank of Long Island in February 2001.
     (LOGO:  http://www.newscom.com/cgi-bin/prnh/20000727/STBLOGO )
     As of March 31, 2001, total loans and leases outstanding amounted to
 $544 million, up 11.7% over the comparable prior year period.  Total deposits
 at the same date were $856 million, an increase of 9.1% versus a year ago.
 Stockholders' equity totaled $77.2 million at March 31, 2001, versus
 $57.4 million at March 31, 2000. Excluding valuations related to SFAS No. 115,
 stockholders' equity grew at a year-to-year rate of 7.7% to $76.0 million in
 2001 from $70.6 million a year ago.
     State Bancorp's Tier I leverage ratio was 7.23% and 7.45% at
 March 31, 2001 and 2000, respectively. This ratio is well in excess of the
 current regulatory guidelines for a well-capitalized institution. The
 allowance for loan losses as a percentage of loans outstanding was 1.81% at
 March 31, 2001, 1.85% at December 31, 2000 and 1.51% at March 31, 2000.
     State Bancorp's sole subsidiary, State Bank of Long Island, the largest
 independent commercial bank headquartered in Nassau County, currently operates
 full service banking offices in ten locations throughout Nassau and Suffolk
 counties: New Hyde Park, Jericho, Oyster Bay, Rockville Centre, Garden City
 South, Huntington, Hauppauge, Farmingdale, Holbrook and East Setauket.  New
 branch facilities are expected to open during the second quarter of 2001 in
 Mineola (Nassau) and in the Bulova Corporate Center (Queens). The Bank also
 expects to open additional Queens County branches in Maspeth and Long Island
 City during the second half of 2001.  In addition, the Bank also maintains a
 lending facility in Jericho and has two subsidiaries based in Wilmington,
 Delaware, which provide investment and balance sheet management services to
 the Bank.  The Company maintains a World Wide Web site at
 http://www.statebankofli.com with corporate, investor and branch banking
 information.
 
                              STATE BANCORP, INC.
                              FINANCIAL HIGHLIGHTS
                     (In thousands, except per share data)
 
 
                                                       THREE MONTHS ENDED:
     INCOME STATEMENT SUMMARY:                       03/31/01       03/31/00
 
     INTEREST INCOME                                  $19,217        $17,599
     INTEREST EXPENSE                                   9,096          8,207
      NET INTEREST INCOME                              10,121          9,392
     PROVISION FOR LOAN LOSSES                            773          1,000
      NET INTEREST INCOME AFTER PROVISION
      FOR LOAN LOSSES                                   9,348          8,392
     NON-INTEREST INCOME                                  664            813
     NET SECURITY LOSSES                                 (10)           (89)
     NONINTEREST EXPENSE                                6,571          5,304
     INCOME BEFORE INCOME TAXES                         3,431          3,812
     PROVISION FOR INCOME TAXES                           659          1,096
 
       NET INCOME                                      $2,772         $2,716
 
       BASIC EARNINGS PER COMMON SHARE *                $0.37          $0.36
 
       DILUTED EARNINGS PER COMMON SHARE *              $0.36          $0.36
 
 
     SELECTED AVERAGE BALANCES:
 
     TOTAL ASSETS                                  $1,019,429       $922,079
 
     LOANS - NET OF UNEARNED INCOME                   522,613        483,728
 
     INVESTMENT SECURITIES                            364,978        381,632
 
     DEPOSITS                                         922,250        814,363
 
     STOCKHOLDERS' EQUITY                              75,036         55,656
 
     COMMON SHARES OUTSTANDING *                    7,530,261      7,532,793
 
     FINANCIAL PERFORMANCE RATIOS:
 
     RETURN ON AVERAGE ASSETS                          1.10 %         1.18 %
 
     RETURN ON AVERAGE STOCKHOLDERS' EQUITY             14.98          19.63
 
     NET INTEREST MARGIN (FTE)                           4.46           4.45
 
     OPERATING EFFICIENCY RATIO                         57.30          50.40
 
     NET CHARGE-OFFS (ANNUALIZED) / AVERAGE LOANS        0.44           0.63
 
 
     PERIOD-END FINANCIAL DATA:
 
                           03/31/01      12/31/00     03/31/00      12/31/99
 
 
     TOTAL ASSETS          $993,766    $1,021,223     $927,654      $949,829
 
     LOANS - NET OF
      UNEARNED INCOME       544,489       496,992      487,452       488,948
 
     INVESTMENT SECURITIES  339,712       418,591      391,993       377,431
 
     DEPOSITS               855,913       895,107      784,655       804,463
 
     STOCKHOLDERS' EQUITY    77,158        72,307       57,449        56,103
 
     STOCKHOLDERS' EQUITY
      / TOTAL ASSETS         7.76 %        7.08 %       6.19 %        5.91 %
     COMMON SHARES
      OUTSTANDING *       7,475,977     7,527,383    7,534,645     7,519,614
 
     TIER I LEVERAGE RATIO   7.23 %        7.57 %       7.45 %        7.02 %
     ALLOWANCE FOR LOAN
      LOSSES / TOTAL LOANS   1.81 %        1.85 %       1.51 %        1.45 %
     BOOK VALUE PER SHARE
      (INCL. SFAS 115) *     $10.32         $9.61        $7.62         $7.46
 
     BOOK VALUE PER SHARE
      (EXCL. SFAS 115) *     $10.17        $10.00        $9.54         $9.12
 
     * Prior period data has been restated to give retroactive effect to a 8%
 stock dividend declared on May 23, 2000.
 
 SOURCE  State Bancorp, Inc.