- Third quarter 2014 net income of $11.5 million, or $.34 per diluted share
- Continued growth in organic loans and noninterest-bearing deposits
- Purchased loan portfolio from an FDIC-assisted transaction in July
ATLANTA, Oct. 23, 2014 (GLOBE NEWSWIRE) -- State Bank Financial Corporation (Nasdaq:STBZ) today announced unaudited financial results for the quarter ended September 30, 2014. Net income for the third quarter of 2014 was $11.5 million, compared to $4.3 million for the third quarter of 2013 and $7.5 million for the second quarter of 2014. Fully diluted earnings per share were $.34 in the third quarter of 2014 compared to $.13 in the third quarter of 2013 and $.22 in the second quarter of 2014.
Joe Evans, Chairman and CEO, commented, "Strong organic growth in demand deposits, loans and payroll revenue reflect successful execution of our core business strategies. Furthermore, the July acquisition of a $42.6 million loan portfolio will leverage our core competency in profitably managing problem assets and help keep a healthy stream of accretion flowing through our income statement."
For clarity in this release, State Bank has previously classified loans as noncovered and covered, which primarily referred to whether or not they were subject to coverage under loss share agreements with the FDIC. These two categories will now be disclosed as organic and purchased credit impaired, respectively. In future quarters, we will add a third category, purchased non-credit impaired, which will include performing loans from Bank of Atlanta next quarter and First Bank of Georgia after the transaction closes.
Operating Highlights
Net interest income was $38.0 million in the third quarter of 2014, up from $33.1 million in the second quarter of 2014, and down from $44.4 million in the third quarter of 2013. Accretion income on loans was $21.1 million in the third quarter of 2014, up from $17.1 million in the second quarter of 2014. The linked-quarter increase in accretion income was due to gains from purchased loan pools closing out in the third quarter of 2014. Interest income on organic loans for the third quarter of 2014 was $16.2 million, up from $15.4 million in the prior quarter and $15.8 million in the third quarter of 2013. Interest expense of $1.9 million in the third quarter of 2014 was essentially flat with the prior quarter but down $124 thousand compared to the prior year period. Cost of funds for the third quarter of 2014 was 35 basis points, unchanged versus the prior quarter but down three basis points from the prior year period.
The organic loan portfolio continued to perform well in the third quarter of 2014 as past due loans declined for the second straight quarter to 10 basis points of organic loans. The provision for loan losses on organic loans was $1.0 million in the third quarter of 2014 and was primarily attributable to loan growth in the quarter. The provision on purchased credit impaired loans, net of the FDIC benefit, was a negative $584 thousand in the third quarter of 2014 due to cash flows on purchased credit impaired loans exceeding estimated cash flows.
Noninterest income, excluding amortization of the FDIC receivable for loss share agreements (which we refer to as the indemnification asset), was $3.6 million for the third quarter of 2014, up from $3.3 million in the second quarter of 2014 partially due to higher payroll fee income.
Total noninterest income for the third quarter of 2014, which includes amortization of the indemnification asset, was $3.4 million compared to $1.4 million in the second quarter of 2014 and negative $14.5 million in the third quarter of 2013. Amortization of the indemnification asset negatively impacted noninterest income by only $196 thousand in the third quarter of 2014, compared to $1.9 million in the second quarter of 2014 and $19.0 million in the third quarter of 2013.
Total noninterest expense for the third quarter of 2014 was $22.5 million, up $434 thousand from the second quarter of 2014 but down $614 thousand from the third quarter of 2013. The third quarter included approximately $223 thousand of merger expenses related to the two acquisitions announced in the second quarter of 2014.
Financial Condition
Total assets at September 30, 2014 were $2.64 billion, up from $2.58 billion at June 30, 2014 and $2.53 billion at September 30, 2013. Period-end organic loans increased to $1.29 billion at September 30, 2014, a net increase of $61.6 million, or 5.0%, from the second quarter of 2014. Period-end organic loans comprised 85.9% of total gross loans at September 30, 2014. Average organic loans increased $53.5 million in the quarter. Purchased credit impaired loans increased to $212.8 million as a result of the purchased loan portfolio from the FDIC. Total net loans were $1.48 billion at September 30, 2014, up $71.5 million from the second quarter of 2014 and $51.1 million from the third quarter of 2013.
Total deposits at September 30, 2014 were $2.16 billion, up from $2.12 billion at the end of the second quarter of 2014 and $2.05 billion at the end of the third quarter of 2013. Noninterest-bearing deposits increased $104.4 million, or 24.8%, from the third quarter of 2013. Period-end noninterest-bearing deposits represented 24.3% of total deposits as of September 30, 2014. Average noninterest-bearing deposits, which increased for the tenth consecutive quarter, were up $29.6 million from the second quarter of 2014 and $72.7 million from the third quarter of 2013.
Tangible book value per share was $13.83 at the end of the third quarter of 2014. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 17.16% and a Tier I risk-based capital ratio of 25.67%.
Recent Transactions and Subsequent Events
On June 24, 2014, State Bank announced the signing of a definitive agreement with Georgia-Carolina Bancshares, Inc. and its wholly-owned subsidiary, First Bank of Georgia, in a cash and stock transaction with a purchase price of approximately $82 million, or $22.35 per share. The transaction value at the time of the merger may change due to fluctuations in the price of State Bank Financial Corporation common stock within certain defined parameters. First Bank of Georgia is headquartered in Augusta, Georgia and operates seven banking offices in the Augusta market and mortgage origination offices in the Augusta and Savannah, Georgia markets. At June 30, 2014, First Bank of Georgia had approximately $519 million of total assets, $337 million of loans and $416 million of deposits. The agreement has been unanimously approved by the Boards of Directors of both companies and is anticipated to close in the first quarter of 2015. Completion of the transaction is subject to certain closing conditions, including customary regulatory approvals and approval by the shareholders of Georgia-Carolina Bancshares.
On July 18, 2014, State Bank and Trust Company entered into an agreement with the FDIC to purchase a $42.6 million loan portfolio of a failed bank. This portfolio is reflected in purchased credit impaired balances.
On October 1, 2014, State Bank completed its merger with Atlanta Bancorporation, Inc., that was announced on April 28, 2014. We expect the conversion of Bank of Atlanta's systems into our systems to be completed in December 2014. The consolidation of State Bank and Trust Company's current midtown Atlanta office into Bank of Atlanta's existing midtown office is scheduled to occur on December 31, 2014.
Detailed Results
Supplemental tables displaying financial results for the third quarter of 2014, the previous four quarters and year-to-date 2014 are included with this press release.
Conference Call
State Bank Chief Executive Officer Joe Evans, Chief Financial Officer Tom Callicutt and Executive Risk Officer Kim Childers will discuss financial and business results for the quarter on a conference call today at 8:30 a.m. EDT. The dial in number is 1.800.925.3017. Please allow time to register your name and affiliation/company prior to the start of the call. A replay of the conference call will be available shortly after the call's completion in the Investors section on the company's website at www.statebt.com. A slide presentation for today's call is also available in the Investors section on the company's website.
About State Bank Financial Corporation
State Bank Financial Corporation (Nasdaq:STBZ) is the holding company for State Bank and Trust Company, one of Georgia's best-capitalized banks, with approximately $2.6 billion in assets as of September 30, 2014. State Bank has locations in Metro Atlanta and Middle Georgia.
To learn more about State Bank, visit www.statebt.com
The State Bank Financial Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=14370
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "intend," "plan," "seek," "believe," "expect," "strategy," "future," "likely," "project," "may," "should," "will" and similar references to future periods. Examples of forward-looking statements include, among others, statements related to our expectations with respect to our future revenue expectations on our acquired loan portfolios, the expected timing of the conversion of Bank of Atlanta's systems with ours, the timing of the consolidation of our midtown Atlanta office into Bank of Atlanta's existing midtown Atlanta office and expectations with respect to our proposed merger with Georgia-Carolina Bancshares, Inc., including the expected timing, completion and other effects of the proposed transaction. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as a downturn in the economy, unanticipated losses related to the integration of, and accounting for, acquired assets and assumed liabilities in our acquisition transactions, access to funding sources, greater than expected noninterest expenses, volatile credit and financial markets both domestic and foreign, potential deterioration in real estate values, regulatory changes and excessive loan losses, and, with respect to the proposed transaction with Georgia-Carolina Bancshares, Inc., the inability to obtain the requisite regulatory approvals and meet other closing terms and conditions, any or all of which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. See Item 1A, Risk Factors, in our Annual Report on Form 10-K for the year ended December 31, 2013, for a description of some of the important factors that may affect actual outcomes.
Addition Information About the Merger and Where to Find It
In connection with the proposed merger transaction with Georgia-Carolina Bancshares, Inc., State Bank Financial Corporation has filed a registration statement on Form S-4 with the SEC to register State Bank Financial Corporation's shares that will be issued to Georgia-Carolina Bancshares, Inc.'s shareholders in connection with the transaction. The registration statement includes a proxy statement of Georgia-Carolina Bancshares, Inc. and a prospectus of State Bank Financial Corporation, as well as other relevant documents concerning the proposed transaction. The registration statement and the proxy statement/prospectus filed with the SEC related to the proposed transaction contains important information about State Bank Financial Corporation, Georgia-Carolina Bancshares, Inc. and the proposed transaction and related matters. This document is not yet final and will be amended. WE URGE SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT AND PRELIMINARY PROXY STATEMENT/PROSPECTUS (AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE TRANSACTION OR INCORPORATED BY REFERENCE INTO THE REGISTRATION STATEMENT AND PROXY STATEMENT/PROSPECTUS, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, INCLUDING THE DEFINITIVE PROXY STATEMENT/PROSPECTUS) BECAUSE THOSE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION. Security holders may obtain free copies of these documents and other documents filed with the SEC on the SEC's website at http://www.sec.gov. Security holders may also obtain free copies of the documents filed with the SEC by State Bank Financial Corporation at its website at https://www.statebt.com (which website is not incorporated herein by reference) or by contacting Jeremy Lucas by telephone at 404.239.8626. Security holders may also obtain free copies of the documents filed with the SEC by Georgia-Carolina Bancshares, Inc. at its website at https://www.firstbankofga.com (which website is not incorporated herein by reference) or by contacting Thomas J. Flournoy by telephone at 706.731.6622.
State Bank Financial Corporation, Georgia-Carolina Bancshares, Inc. and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Georgia-Carolina Bancshares, Inc. in connection with the proposed merger. Information regarding these persons who may, under the rules of the SEC, be considered participants in the solicitation of shareholders in connection with the proposed merger will be included in the proxy statement/prospectus and other relevant materials to be filed with the SEC when they become available. Additional information regarding each of State Bank Financial Corporation's and Georgia-Carolina Bancshares, Inc.'s respective directors and executive officers, including shareholdings, is included in State Bank Financial Corporation's definitive proxy statement for 2014, which was filed with the SEC on April 11, 2014, and Georgia-Carolina Bancshares, Inc.'s definitive proxy statement for 2014, which was filed with the SEC on April 14, 2014. You can obtain free copies of this document from State Bank Financial Corporation or Georgia-Carolina Bancshares, Inc., respectively, using the contact information above.
| State Bank Financial Corporation | |||||||
| 3Q14 Financial Supplement: Table 1 | |||||||
| Condensed Consolidated Financial Summary Results | |||||||
| Quarterly (Unaudited) | |||||||
| 3Q14 change vs | |||||||
| (Dollars in thousands, except per share amounts) | 3Q14 | 2Q14 | 1Q14 | 4Q13 | 3Q13 | 2Q14 | 3Q13 |
| Income Statement Highlights | |||||||
| Total interest income on invested funds | $ 2,545 | $ 2,522 | $ 2,493 | $ 2,416 | $ 2,587 | $ 23 | $ (42) |
| Interest income on loans, including fees | 16,189 | 15,380 | 15,275 | 15,861 | 15,800 | 809 | 389 |
| Accretion income on loans | 21,110 | 17,087 | 26,536 | 48,065 | 27,978 | 4,023 | (6,868) |
| Total interest expense | 1,857 | 1,846 | 1,894 | 1,961 | 1,981 | 11 | (124) |
| Net interest income | 37,987 | 33,143 | 42,410 | 64,381 | 44,384 | 4,844 | (6,397) |
| Provision for loan losses on organic loans | 1,000 | 1,000 | — | — | 905 | — | 95 |
| Provision for loan losses on purchased credit impaired loans | (584) | (299) | 590 | (98) | (636) | (285) | 52 |
| Amortization of FDIC receivable for loss share agreements | (196) | (1,949) | (15,292) | (31,372) | (18,971) | 1,753 | 18,775 |
| Other noninterest income | 3,597 | 3,318 | 3,103 | 3,955 | 4,471 | 279 | (874) |
| Noninterest expense | 22,510 | 22,076 | 23,083 | 22,718 | 23,124 | 434 | (614) |
| Income before income taxes | 18,462 | 11,735 | 6,548 | 14,344 | 6,491 | 6,727 | 11,971 |
| Income tax expense | 6,958 | 4,228 | 2,226 | 4,927 | 2,142 | 2,730 | 4,816 |
| Net income | $ 11,504 | $ 7,507 | $ 4,322 | $ 9,417 | $ 4,349 | $ 3,997 | $ 7,155 |
| Common Share Data | |||||||
| Basic net income per share | $ .36 | $ .23 | $ .13 | $ .29 | $ .14 | $ .13 | $ .22 |
| Diluted net income per share | .34 | .22 | .13 | .28 | .13 | .12 | .21 |
| Cash dividends declared per share | .04 | .04 | .03 | .03 | .03 | — | .01 |
| Book value per share | 14.20 | 13.95 | 13.74 | 13.62 | 13.36 | .25 | .84 |
| Tangible book value per share | 13.83 | 13.58 | 13.36 | 13.24 | 12.97 | .25 | .86 |
| Market price per share | 16.24 | 16.91 | 17.69 | 18.19 | 15.87 | (.67) | .37 |
| Average Balance Sheet Highlights | |||||||
| Organic loans, net of unearned income | $ 1,246,008 | $ 1,192,494 | $ 1,133,802 | $ 1,144,116 | $ 1,140,052 | $ 53,514 | $ 105,956 |
| Purchased credit impaired loans | 215,318 | 236,178 | 250,824 | 258,600 | 305,487 | (20,860) | (90,169) |
| Assets | 2,604,244 | 2,585,908 | 2,575,216 | 2,559,725 | 2,561,802 | 18,336 | 42,442 |
| Deposits | 2,125,659 | 2,108,595 | 2,088,787 | 2,089,202 | 2,077,170 | 17,064 | 48,489 |
| Equity | 448,982 | 444,175 | 439,105 | 429,494 | 427,212 | 4,807 | 21,770 |
| Tangible common equity | 437,038 | 432,073 | 426,828 | 417,030 | 414,516 | 4,965 | 22,522 |
| Key Metrics | |||||||
| Return on average assets (1) | 1.75% | 1.16% | .68% | 1.46% | .67% | .59% | 1.08% |
| Return on average equity (1) | 10.17 | 6.78 | 3.99 | 8.70 | 4.04 | 3.39 | 6.13 |
| Yield on earning assets (2) | 6.44 | 5.86 | 7.71 | 11.60 | 8.30 | .58 | (1.86) |
| Cost of funds (2) | .35 | .35 | .36 | .37 | .38 | — | (.03) |
| Rate on interest-bearing liabilities | .45 | .45 | .46 | .47 | .47 | — | (.02) |
| Net interest margin (2) | 6.14 | 5.55 | 7.38 | 11.26 | 7.95 | 0.59 | (1.81) |
| Average equity to average assets | 17.24 | 17.18 | 17.05 | 16.78 | 16.68 | 0.06 | .56 |
| Leverage ratio | 17.16 | 16.84 | 16.67 | 16.55 | 16.20 | 0.32 | .96 |
| Tier I risk-based capital ratio | 25.67 | 27.06 | 27.20 | 27.85 | 26.18 | (1.39) | (.51) |
| Efficiency ratio (2) | 54.28 | 63.82 | 76.19 | 61.28 | 77.16 | (9.54) | (22.88) |
| Average loans to average deposits | 68.75 | 67.75 | 66.29 | 67.14 | 69.59 | 1.00 | (0.84) |
| Noninterest-bearing deposits to total deposits | 24.33 | 21.82 | 22.02 | 22.00 | 20.50 | 2.51 | 3.83 |
| Organic Assets: | |||||||
| Nonperforming loans to total loans | .13 | .16 | .18 | .20 | .25 | (.03) | (.12) |
| Nonperforming assets to loans + ORE | .16 | .22 | .26 | .29 | .33 | (.06) | (.17) |
| (1) Net income annualized for the applicable period. | |||||||
| (2) Interest income annualized for the applicable period and calculated on a fully tax-equivalent basis. | |||||||
| State Bank Financial Corporation | |||||||
| 3Q14 Financial Supplement: Table 2 | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| Quarterly (Unaudited) | |||||||
| 3Q14 change vs | |||||||
| (Dollars in thousands) | 3Q14 | 2Q14 | 1Q14 | 4Q13 | 3Q13 | 2Q14 | 3Q13 |
| Assets | |||||||
| Cash and amounts due from depository institutions | $ 17,209 | $ 8,333 | $ 7,314 | $ 8,518 | $ 7,888 | $ 8,876 | $ 9,321 |
| Interest-bearing deposits in other financial institutions | 459,271 | 499,400 | 549,593 | 590,231 | 399,267 | (40,129) | 60,004 |
| Cash and cash equivalents | 476,480 | 507,733 | 556,907 | 598,749 | 407,155 | (31,253) | 69,325 |
| Investment securities available-for-sale | 532,447 | 494,874 | 454,053 | 387,048 | 374,838 | 37,573 | 157,609 |
| Loans receivable: | |||||||
| Organic loans | 1,291,923 | 1,230,304 | 1,166,913 | 1,123,475 | 1,164,854 | 61,619 | 127,069 |
| Purchased credit impaired loans (1) | 212,802 | 211,302 | 246,279 | 257,494 | 290,077 | 1,500 | (77,275) |
| Allowance for loan losses on organic loans | (18,828) | (17,885) | (16,858) | (16,656) | (16,427) | (943) | (2,401) |
| Allowance for loan losses on purchased credit impaired loans | (8,403) | (17,722) | (19,182) | (17,409) | (12,075) | 9,319 | 3,672 |
| Net loans | 1,477,494 | 1,405,999 | 1,377,152 | 1,346,904 | 1,426,429 | 71,495 | 51,065 |
| Mortgage loans held for sale | 1,283 | 726 | 1,552 | 897 | 885 | 557 | 398 |
| Other real estate owned (2) | 15,169 | 23,938 | 38,437 | 47,187 | 52,625 | (8,769) | (37,456) |
| Premises and equipment, net | 34,696 | 34,820 | 34,592 | 33,318 | 33,988 | (124) | 708 |
| Goodwill | 10,381 | 10,381 | 10,381 | 10,381 | 10,381 | — | — |
| Other intangibles, net | 1,511 | 1,663 | 1,824 | 1,986 | 2,150 | (152) | (639) |
| FDIC receivable for loss share agreements, net | 19,999 | 39,250 | 65,248 | 103,160 | 156,549 | (19,251) | (136,550) |
| Other assets | 71,915 | 60,896 | 77,232 | 71,075 | 62,101 | 11,019 | 9,814 |
| Total assets | $ 2,641,375 | $ 2,580,280 | $ 2,617,378 | $ 2,600,705 | $ 2,527,101 | $ 61,095 | $ 114,274 |
| Liabilities and Shareholders' Equity | |||||||
| Noninterest-bearing deposits | $ 524,634 | $ 461,434 | $ 471,414 | $ 468,138 | $ 420,269 | $ 63,200 | $ 104,365 |
| Interest-bearing deposits | 1,631,340 | 1,653,779 | 1,669,647 | 1,660,187 | 1,629,642 | (22,439) | 1,698 |
| Total deposits | 2,155,974 | 2,115,213 | 2,141,061 | 2,128,325 | 2,049,911 | 40,761 | 106,063 |
| Securities sold under agreements to repurchase | — | — | — | 1,216 | 1,082 | — | (1,082) |
| Notes payable | 2,776 | 2,779 | 4,371 | 5,682 | 5,690 | (3) | (2,914) |
| Other liabilities | 24,348 | 13,981 | 30,507 | 28,299 | 41,825 | 10,367 | (17,477) |
| Total liabilities | 2,183,098 | 2,131,973 | 2,175,939 | 2,163,522 | 2,098,508 | 51,125 | 84,590 |
| Total shareholders' equity | 458,277 | 448,307 | 441,439 | 437,183 | 428,593 | 9,970 | 29,684 |
| Total liabilities and shareholders' equity | $ 2,641,375 | $ 2,580,280 | $ 2,617,378 | $ 2,600,705 | $ 2,527,101 | $ 61,095 | $ 114,274 |
| Capital Ratios | |||||||
| Average equity to average assets | 17.24% | 17.18% | 17.05% | 16.78% | 16.68% | .06% | .56% |
| Leverage ratio | 17.16 | 16.84 | 16.67 | 16.55 | 16.20 | .32 | .96 |
| Tier I risk-based capital ratio | 25.67 | 27.06 | 27.20 | 27.85 | 26.18 | (1.39) | (.51) |
| Total risk-based capital ratio | 26.93 | 28.32 | 28.47 | 29.11 | 27.44 | (1.39) | (.51) |
| Shares Issued and Outstanding | |||||||
| Common stock | 32,271,466 | 32,130,645 | 32,123,645 | 32,094,145 | 32,076,645 | 140,821 | 194,821 |
| (1) Loans covered by loss share agreements with the FDIC were approximately $163.4 million at 3Q14, $211.3 million at 2Q14, $246.3 million at 1Q14, $257.5 million at 4Q13 and $290.1 million at 3Q13. | |||||||
| (2) Other real estate owned covered by loss share agreements with the FDIC were approximately $11.2 million at 3Q14, $23.2 million at 2Q14, $37.5 million at 1Q14, $46.2 million at 4Q13 and $51.7 million at 3Q13. | |||||||
| State Bank Financial Corporation | |||||||
| 3Q14 Financial Supplement: Table 3 | |||||||
| Condensed Consolidated Income Statements | |||||||
| Quarterly (Unaudited) | |||||||
| 3Q14 change vs | |||||||
| (Dollars in thousands, except per share amounts) | 3Q14 | 2Q14 | 1Q14 | 4Q13 | 3Q13 | 2Q14 | 3Q13 |
| Net Interest Income: | |||||||
| Interest income on invested funds | $ 2,545 | $ 2,522 | $ 2,493 | $ 2,416 | $ 2,587 | $ 23 | $ (42) |
| Interest income on loans, including fees | 16,189 | 15,380 | 15,275 | 15,861 | 15,800 | 809 | 389 |
| Accretion income on loans | 21,110 | 17,087 | 26,536 | 48,065 | 27,978 | 4,023 | (6,868) |
| Total interest expense | 1,857 | 1,846 | 1,894 | 1,961 | 1,981 | 11 | (124) |
| Net interest income | 37,987 | 33,143 | 42,410 | 64,381 | 44,384 | 4,844 | (6,397) |
| Provision for loan losses on organic loans | 1,000 | 1,000 | — | — | 905 | — | 95 |
| Provision for loan losses on purchased credit impaired loans | (584) | (299) | 590 | (98) | (636) | (285) | 52 |
| Net interest income after provision for loan losses | 37,571 | 32,442 | 41,820 | 64,479 | 44,115 | 5,129 | (6,544) |
| Noninterest Income: | |||||||
| Amortization of FDIC receivable for loss share agreements | (196) | (1,949) | (15,292) | (31,372) | (18,971) | 1,753 | 18,775 |
| Service charges on deposits | 1,206 | 1,196 | 1,158 | 1,304 | 1,353 | 10 | (147) |
| Mortgage banking income | 191 | 163 | 159 | 153 | 260 | 28 | (69) |
| Gain on sale of investment securities | — | 12 | 11 | — | 717 | (12) | (717) |
| Payroll fee income | 875 | 822 | 953 | 879 | 727 | 53 | 148 |
| ATM income | 621 | 636 | 590 | 604 | 604 | (15) | 17 |
| Bank-owned life insurance income | 333 | 329 | 329 | 333 | 342 | 4 | (9) |
| Other | 371 | 160 | (97) | 682 | 468 | 211 | (97) |
| Total noninterest income | 3,401 | 1,369 | (12,189) | (27,417) | (14,500) | 2,032 | 17,901 |
| Noninterest Expense: | |||||||
| Salaries and employee benefits | 14,644 | 14,575 | 15,077 | 14,500 | 14,794 | 69 | (150) |
| Occupancy and equipment | 2,440 | 2,314 | 2,529 | 2,330 | 2,431 | 126 | 9 |
| Legal and professional fees | 1,074 | 996 | 1,014 | 1,154 | 954 | 78 | 120 |
| Marketing | 453 | 548 | 332 | 369 | 457 | (95) | (4) |
| Federal deposit insurance premiums and other regulatory fees | 356 | 337 | 334 | 303 | 939 | 19 | (583) |
| Loan collection and OREO costs | — | (32) | 624 | 733 | 374 | 32 | (374) |
| Data processing | 1,758 | 1,714 | 1,672 | 1,595 | 1,551 | 44 | 207 |
| Amortization of intangibles | 152 | 161 | 162 | 164 | 299 | (9) | (147) |
| Other | 1,633 | 1,463 | 1,339 | 1,570 | 1,325 | 170 | 308 |
| Total noninterest expense | 22,510 | 22,076 | 23,083 | 22,718 | 23,124 | 434 | (614) |
| Income Before Income Taxes | 18,462 | 11,735 | 6,548 | 14,344 | 6,491 | 6,727 | 11,971 |
| Income tax expense | 6,958 | 4,228 | 2,226 | 4,927 | 2,142 | 2,730 | 4,816 |
| Net Income | $ 11,504 | $ 7,507 | $ 4,322 | $ 9,417 | $ 4,349 | $ 3,997 | $ 7,155 |
| Net Income Per Share | |||||||
| Basic | $ .36 | $ .23 | $ .13 | $ .29 | $ .14 | $ .13 | $ .22 |
| Diluted | .34 | .22 | .13 | .28 | .13 | .12 | .21 |
| Weighted Average Shares Outstanding | |||||||
| Basic | 32,206,889 | 32,126,260 | 32,094,473 | 32,086,781 | 31,998,901 | 80,629 | 207,988 |
| Diluted | 33,755,595 | 33,589,797 | 33,644,135 | 33,519,550 | 33,296,650 | 165,798 | 458,945 |
| State Bank Financial Corporation | |||
| 3Q14 Financial Supplement: Table 4 | |||
| Condensed Consolidated Income Statements | |||
| Year to Date (Unaudited) | |||
| Nine Months Ended September 30 | |||
| (Dollars in thousands, except per share amounts) | 2014 | 2013 | YTD Change |
| Net Interest Income: | |||
| Total interest income on invested funds | $ 7,560 | $ 7,782 | $ (222) |
| Interest income on loans, including fees | 46,844 | 45,315 | 1,529 |
| Accretion income on loans | 64,733 | 74,401 | (9,668) |
| Total interest expense | 5,597 | 5,972 | (375) |
| Net interest income | 113,540 | 121,526 | (7,986) |
| Provision for loan losses on organic loans | 2,000 | 1,920 | 80 |
| Provision for loan losses on purchased credit impaired loans | (293) | (4,309) | 4,016 |
| Net interest income after provision for loan losses | 111,833 | 123,915 | (12,082) |
| Noninterest Income: | |||
| Amortization of FDIC receivable for loss share agreements | (17,437) | (56,512) | 39,075 |
| Service charges on deposits | 3,560 | 3,852 | (292) |
| Mortgage banking income | 513 | 855 | (342) |
| Gain on sale of investment securities | 23 | 1,081 | (1,058) |
| Payroll fee income | 2,650 | 2,264 | 386 |
| ATM income | 1,847 | 1,844 | 3 |
| Bank-owned life insurance income | 991 | 1,021 | (30) |
| Other | 434 | 1,899 | (1,465) |
| Total noninterest income | (7,419) | (43,696) | 36,277 |
| Noninterest Expense: | |||
| Salaries and employee benefits | 44,296 | 47,736 | (3,440) |
| Occupancy and equipment | 7,283 | 7,437 | (154) |
| Legal and professional fees | 3,084 | 3,835 | (751) |
| Marketing | 1,333 | 1,135 | 198 |
| Federal insurance premiums and other regulatory fees | 1,027 | 2,012 | (985) |
| Loan collection and OREO costs | 592 | 3,606 | (3,014) |
| Data processing | 5,144 | 4,492 | 652 |
| Amortization of intangibles | 475 | 1,038 | (563) |
| Other | 4,435 | 3,958 | 477 |
| Total noninterest expense | 67,669 | 75,249 | (7,580) |
| Income Before Income Taxes | 36,745 | 4,970 | 31,775 |
| Income tax expense | 13,412 | 1,640 | 11,772 |
| Net Income | $ 23,333 | $ 3,330 | $ 20,003 |
| Net Income Per Share | |||
| Basic | $ .73 | $ .10 | $ .62 |
| Diluted | .69 | .10 | .59 |
| Weighted Average Shares Outstanding | |||
| Basic | 32,142,953 | 31,942,470 | 200,483 |
| Diluted | 33,663,588 | 33,215,846 | 447,742 |
| State Bank Financial Corporation | |||||||
| 3Q14 Financial Supplement: Table 5 | |||||||
| Condensed Consolidated Composition of Loans and Deposits at Period Ends | |||||||
| Quarterly (Unaudited) | |||||||
| 3Q14 change vs | |||||||
| (Dollars in thousands) | 3Q14 | 2Q14 | 1Q14 | 4Q13 | 3Q13 | 2Q14 | 3Q13 |
| Composition of Loans | |||||||
| Organic loans: | |||||||
| Construction, land & land development | $ 324,008 | $ 271,525 | $ 259,488 | $ 251,043 | $ 285,855 | $ 52,483 | $ 38,153 |
| Other commercial real estate | 591,672 | 616,418 | 593,260 | 550,474 | 552,579 | (24,746) | 39,093 |
| Total commercial real estate | 915,680 | 887,943 | 852,748 | 801,517 | 838,434 | 27,737 | 77,246 |
| Commercial & industrial | 57,021 | 55,555 | 28,140 | 30,145 | 27,573 | 1,466 | 29,448 |
| Owner-occupied real estate | 164,514 | 167,129 | 171,221 | 174,858 | 181,882 | (2,615) | (17,368) |
| Total commercial & industrial | 221,535 | 222,684 | 199,361 | 205,003 | 209,455 | (1,149) | 12,080 |
| Residential real estate | 80,231 | 75,683 | 67,896 | 66,835 | 63,386 | 4,548 | 16,845 |
| Consumer | 9,445 | 7,997 | 8,320 | 9,259 | 7,181 | 1,448 | 2,264 |
| Other | 65,032 | 35,997 | 38,588 | 40,861 | 46,398 | 29,035 | 18,634 |
| Total organic loans | 1,291,923 | 1,230,304 | 1,166,913 | 1,123,475 | 1,164,854 | 61,619 | 127,069 |
| Purchased credit impaired loans: | |||||||
| Construction, land & land development | 25,463 | 23,851 | 30,770 | 35,383 | 40,268 | 1,612 | (14,805) |
| Other commercial real estate | 54,573 | 54,212 | 65,599 | 67,573 | 77,040 | 361 | (22,467) |
| Total commercial real estate | 80,036 | 78,063 | 96,369 | 102,956 | 117,308 | 1,973 | (37,272) |
| Commercial & industrial | 2,785 | 3,070 | 4,216 | 4,271 | 6,378 | (285) | (3,593) |
| Owner-occupied real estate | 48,834 | 43,409 | 52,791 | 54,436 | 55,723 | 5,425 | (6,889) |
| Total commercial & industrial | 51,619 | 46,479 | 57,007 | 58,707 | 62,101 | 5,140 | (10,482) |
| Residential real estate | 80,859 | 86,371 | 92,509 | 95,240 | 109,806 | (5,512) | (28,947) |
| Consumer | 283 | 378 | 382 | 574 | 838 | (95) | (555) |
| Other | 5 | 11 | 12 | 17 | 24 | (6) | (19) |
| Total purchased credit impaired loans | 212,802 | 211,302 | 246,279 | 257,494 | 290,077 | 1,500 | (77,275) |
| Total loans | $ 1,504,725 | $ 1,441,606 | $ 1,413,192 | $ 1,380,969 | $ 1,454,931 | $ 63,119 | $ 49,794 |
| Composition of Deposits | |||||||
| Noninterest-bearing demand deposits | $ 524,634 | $ 461,434 | $ 471,414 | $ 468,138 | $ 420,269 | $ 63,200 | $ 104,365 |
| Interest-bearing transaction accounts | 377,220 | 387,855 | 382,697 | 367,983 | 304,085 | (10,635) | 73,135 |
| Savings and money market deposits | 910,488 | 898,833 | 903,198 | 892,136 | 908,410 | 11,655 | 2,078 |
| Time deposits less than $100,000 | 147,420 | 155,918 | 162,002 | 168,611 | 177,634 | (8,498) | (30,214) |
| Time deposits $100,000 or greater | 107,143 | 112,705 | 116,858 | 124,827 | 132,538 | (5,562) | (25,395) |
| Brokered and wholesale time deposits | 89,069 | 98,468 | 104,892 | 106,630 | 106,975 | (9,399) | (17,906) |
| Total deposits | $ 2,155,974 | $ 2,115,213 | $ 2,141,061 | $ 2,128,325 | $ 2,049,911 | $ 40,761 | $ 106,063 |
| State Bank Financial Corporation | |||||||
| 3Q14 Financial Supplement: Table 6 | |||||||
| Condensed Consolidated Organic Asset Quality Data | |||||||
| Quarterly (Unaudited) | |||||||
| 3Q14 change vs | |||||||
| 3Q14 | 2Q14 | 1Q14 | 4Q13 | 3Q13 | 2Q14 | 3Q13 | |
| Nonperforming assets: | |||||||
| Nonaccrual loans | $ 740 | $ 1,063 | $ 1,265 | $ 1,396 | $ 1,978 | $ (323) | $ (1,238) |
| Troubled debt restructurings | 875 | 875 | 866 | 869 | 876 | — | (1) |
| Total nonperforming loans | 1,615 | 1,938 | 2,131 | 2,265 | 2,854 | (323) | (1,239) |
| Other real estate owned | 410 | 729 | 901 | 965 | 974 | (319) | (564) |
| Total nonperforming assets | 2,025 | 2,667 | 3,032 | 3,230 | 3,828 | (642) | (1,803) |
| Allowance for loan losses: | |||||||
| Charge-offs | $ 87 | $ 79 | $ 136 | $ 67 | $ 330 | $ 8 | $ (243) |
| Recoveries | 30 | 106 | 338 | 296 | 47 | (76) | (17) |
| Net charge-offs (recoveries) | $ 57 | $ (27) | $ (202) | $ (229) | $ 283 | $ 84 | $ (226) |
| Ratios: | |||||||
| Annualized QTD charge-offs (recoveries) to total average loans | .02% | (.01)% | (.07)% | (.08)% | .10% | .03% | (.08)% |
| Nonperforming loans to total loans | .13 | .16 | .18 | .20 | .25 | (.03) | (.12) |
| Nonperforming assets to loans + ORE | .16 | .22 | .26 | .29 | .33 | (.06) | (.17) |
| Past due loans to total loans | .10 | .13 | .14 | .09 | .10 | (.03) | — |
| Allowance for loan losses to loans | 1.46 | 1.45 | 1.44 | 1.48 | 1.41 | .01 | .05 |
| State Bank Financial Corporation | |||||||
| 3Q14 Financial Supplement: Table 7 | |||||||
| Condensed Consolidated Average Balances and Yield Analysis | |||||||
| Quarterly (Unaudited) | |||||||
| 3Q14 change vs | |||||||
| (Dollars in thousands) | 3Q14 | 2Q14 | 1Q14 | 4Q13 | 3Q13 | 2Q14 | 3Q13 |
| Selected Average Balances | |||||||
| Interest-bearing deposits in other financial institutions | $ 476,190 | $ 490,009 | $ 518,362 | $ 489,046 | $ 398,391 | $ (13,819) | $ 77,799 |
| Taxable investment securities | 519,081 | 475,739 | 425,158 | 374,416 | 369,485 | 43,342 | 149,596 |
| Nontaxable investment securities | 4,407 | 5,501 | 5,538 | 5,559 | 5,836 | (1,094) | (1,429) |
| Organic loans, net of unearned income (1) | 1,246,008 | 1,192,494 | 1,133,802 | 1,144,116 | 1,140,052 | 53,514 | 105,956 |
| Purchased credit impaired loans | 215,318 | 236,178 | 250,824 | 258,600 | 305,487 | (20,860) | (90,169) |
| Total earning assets | 2,461,004 | 2,399,921 | 2,333,684 | 2,271,737 | 2,219,251 | 61,083 | 241,753 |
| Total nonearning assets | 143,240 | 185,987 | 241,532 | 287,988 | 342,551 | (42,747) | (199,311) |
| Total assets | 2,604,244 | 2,585,908 | 2,575,216 | 2,559,725 | 2,561,802 | 18,336 | 42,442 |
| Interest-bearing transaction accounts | 376,052 | 376,143 | 357,988 | 338,502 | 320,168 | (91) | 55,884 |
| Savings & money market deposits | 896,503 | 892,168 | 894,994 | 909,999 | 908,275 | 4,335 | (11,772) |
| Time deposits less than $100,000 | 151,358 | 159,296 | 165,158 | 173,061 | 181,865 | (7,938) | (30,507) |
| Time deposits $100,000 or greater | 109,472 | 114,652 | 122,217 | 129,384 | 137,147 | (5,180) | (27,675) |
| Brokered and wholesale time deposits | 96,743 | 100,395 | 106,555 | 106,676 | 106,918 | (3,652) | (10,175) |
| Notes payable | 2,778 | 3,365 | 5,212 | 5,686 | 5,695 | (587) | (2,917) |
| Securities sold under agreements to repurchase | — | — | 727 | 675 | 2,438 | — | (2,438) |
| Total interest-bearing liabilities | 1,632,906 | 1,646,019 | 1,652,851 | 1,663,983 | 1,662,506 | (13,113) | (29,600) |
| Noninterest-bearing deposits | 495,531 | 465,941 | 441,875 | 431,580 | 422,797 | 29,590 | 72,734 |
| Other liabilities | 26,825 | 29,773 | 41,385 | 34,668 | 49,287 | (2,948) | (22,462) |
| Shareholders' equity | 448,982 | 444,175 | 439,105 | 429,494 | 427,212 | 4,807 | 21,770 |
| Total liabilities and shareholders' equity | 2,604,244 | 2,585,908 | 2,575,216 | 2,559,725 | 2,561,802 | 18,336 | 42,442 |
| Interest Margins (2) | |||||||
| Interest-bearing deposits in other financial institutions | .26% | .26% | .27% | .27% | .31% | —% | (.05)% |
| Taxable investment securities | 1.70 | 1.84 | 2.03 | 2.19 | 2.42 | (.14) | (.72) |
| Nontaxable investment securities, tax-equivalent basis (3) | 1.71 | 2.33 | 2.34 | 2.28 | 2.31 | (.62) | (.60) |
| Organic loans, tax-equivalent basis (4) | 5.18 | 5.20 | 5.49 | 5.53 | 5.52 | (.02) | (.34) |
| Purchased credit impaired loans | 38.90 | 29.02 | 42.91 | 73.74 | 36.34 | 9.88 | 2.56 |
| Total earning assets | 6.44% | 5.86% | 7.71% | 11.60% | 8.30% | .58% | (1.86)% |
| Interest-bearing transaction accounts | .13 | .12 | .12 | .11 | .11 | .01 | .02 |
| Savings & money market deposits | .46 | .45 | .44 | .43 | .42 | .01 | .04 |
| Time deposits less than $100,000 | .51 | .53 | .54 | .55 | .57 | (.02) | (.06) |
| Time deposits $100,000 or greater | .63 | .66 | .69 | .67 | .71 | (.03) | (.08) |
| Brokered and wholesale time deposits | 1.08 | .95 | .93 | .93 | .93 | .13 | .15 |
| Notes payable | 9.00 | 10.37 | 11.52 | 11.44 | 11.49 | (1.37) | (2.49) |
| Securities sold under agreements to repurchase | — | — | — | — | .16 | — | (.16) |
| Total interest-bearing liabilities | .45 | .45 | .46 | .47 | .47 | — | (.02) |
| Net interest spread | 5.99 | 5.41 | 7.25 | 11.13 | 7.83 | .58 | (1.84) |
| Net interest margin | 6.14% | 5.55% | 7.38% | 11.26% | 7.95% | .59% | (1.81)% |
| (1) Includes average nonaccrual loans of $1,742 for 3Q14, $1,970 for 2Q14, $2,098 for 1Q14, $2,642 for 4Q13, and $2,371 for 3Q13. | |||||||
| (2) Interest income annualized for the applicable period. | |||||||
| (3) Reflects taxable equivalent adjustments using the federal statutory tax rate of 35% in adjusting interest on tax-exempt securities to a fully taxable basis. The taxable equivalent adjustments included above amount to $6 for 3Q14, $11 for 2Q14, $11 for 1Q14, $11 for 4Q13, and $12 for 3Q13. | |||||||
| (4) Reflects taxable equivalent adjustments using the federal statutory tax rate of 35% in adjusting tax-exempt loan interest income to a fully taxable basis. The taxable equivalent adjustments included above amount to $75 for 3Q14, $66 for 2Q14, $65 for 1Q14, $97 for 4Q13, and $72 for 3Q13. | |||||||