State Bank, the holding company for Mohave State Bank, has reported a net income of $2.34 million, or $0.61 per diluted share, for 2008, compared to $5.52 million, or $1.42 per diluted share, in 2007.
The decrease in net income is primarily attributable to an $826,000 drop in net interest income and a $3.95 million increase in the provision for loan losses.
Total revenue, consisting of net interest income and non-interest income, was $17 million in 2008, down $725,000, or 4.1%, from $17.7 million in 2007.
During the fourth quarter of 2008, the company reported a net operating loss of $594,000, or $0.15 per diluted share, as compared to a net income of $1.29 million, or $0.33 per diluted share, in the same period of 2007.
Ralph Tapscott, president and CEO of State Bank, said: During the fourth quarter, we took very important and proactive steps to address the challenging credit environment in front of us. We were pleased to see deposit growth in the fourth quarter and a reduction in Federal Home Loan Bank borrowings. In recent quarters, banking system liquidity has become more challenging within our primary markets.
