- Second quarter 2014 net income of $7.5 million, or $.22 per diluted share
- Solid organic loan growth and lower noninterest expenses
- Signed two definitive merger agreements
ATLANTA, July 24, 2014 (GLOBE NEWSWIRE) -- State Bank Financial Corporation (Nasdaq:STBZ) today announced unaudited financial results for the quarter ended June 30, 2014. Net income for the second quarter of 2014 was $7.5 million, compared to net income of $137,000 for the second quarter of 2013 and net income of $4.3 million for the first quarter of 2014. Fully diluted earnings per share were $.22 in the second quarter of 2014 compared to $.00 in the second quarter of 2013 and $.13 in the first quarter of 2014.
Joe Evans, Chairman and CEO, commented, "Today marks the fifth anniversary of State Bank as well as the expiration of the loss share coverage under our commercial loss share agreements for our first acquisition, and I could not be more pleased with where we stand. As our second quarter results reflect, we believe we are exiting loss share very successfully and are continuing to make solid progress in building the core bank as we announced two healthy bank acquisitions that will enhance our current franchise and expand our brand into a new market. I look forward to continuing our positive momentum in the second half of the year."
Operating Highlights
Net interest income was $33.1 million in the second quarter of 2014, down from $42.4 million in the first quarter of 2014 and $41.6 million in the second quarter of 2013 due to lower accretion income on covered loans. Accretion income on covered loans was $17.1 million in the second quarter of 2014, down from $26.5 million in the first quarter of 2014. The higher accretion income in the previous quarter was due primarily to gains on covered loan pools that closed out in the first quarter of 2014. Interest income on noncovered loans for the second quarter of 2014 was $15.4 million, up from $15.3 million in the prior quarter and $15.1 million in the second quarter of 2013. The yield on noncovered loans decreased to 5.20% in the second quarter of 2014 primarily as a result of payoffs from higher-yielding commercial real estate loans as well as lower yields on new fundings. Interest expense of $1.8 million in the second quarter of 2014 was down versus the prior quarter and the prior year period. Cost of funds for the second quarter of 2014 of 35 basis points was down two basis points from the prior quarter and the prior year period.
The noncovered loan portfolio continued to perform well in the second quarter of 2014 as recoveries were greater than charge-offs for the third consecutive quarter. The provision for loan losses on noncovered loans was $1.0 million in the second quarter of 2014 and was primarily attributable to organic loan growth. The provision on covered loans, net of the FDIC benefit, was a negative $299 thousand in the second quarter of 2014 due to actual cash flows on covered 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 $3.3 million for the second quarter of 2014, up from $3.1 million in the first quarter of 2014 primarily due to increases in service charges on deposits, ATM and other income. Total noninterest income for the second quarter of 2014, which includes amortization of the indemnification asset, was $1.4 million compared to negative $12.2 million in the first quarter of 2014 and negative $16.5 million in the second quarter of 2013.
Amortization of the indemnification asset negatively impacted noninterest income by $1.9 million in the second quarter of 2014 compared to $15.3 million in the first quarter of 2014 and $20.8 million in the second quarter of 2013. As of June 30, 2014, we are currently projecting $20 million of scheduled amortization of the indemnification asset with an estimated weighted average life of four quarters, versus $140 million of scheduled loan accretion income with an estimated weighted average life of ten quarters.
Total noninterest expense for the second quarter of 2014 was $22.1 million, down $1.0 million from the first quarter of 2014 and $3.4 million from the second quarter of 2013. Salary and benefit costs decreased $502 thousand in the quarter to $14.6 million for the second quarter of 2014. Loan collection and OREO costs decreased $656 thousand as we experienced a net recovery of $32 thousand in the second quarter of 2014. The second quarter included approximately $265 thousand of merger expenses related to the two acquisitions in the quarter.
Financial Condition
Total assets at June 30, 2014 were $2.58 billion, down from $2.62 billion at March 31, 2014 and $2.61 billion at June 30, 2013. Loans not covered by loss share agreements with the FDIC increased to $1.23 billion at June 30, 2014, a net increase of $63.4 million from the first quarter of 2014. Noncovered loans comprise 85.3% of total gross loans at June 30, 2014. Total net loans were $1.41 billion at June 30, 2014, up $28.8 million from the first quarter of 2014 but down $17.4 million from the second quarter of 2013 as covered loans have declined $122.4 million since the second quarter of 2013.
Total deposits at June 30, 2014 were $2.12 billion, down from $2.14 billion at the end of the first quarter of 2014 and $2.13 billion at the end of the second quarter of 2013. Noninterest-bearing deposits increased $31.5 million from the second quarter of 2013. Period-end noninterest-bearing deposits represented 21.8% of total deposits as of June 30, 2014. Average noninterest-bearing deposits, which increased for the ninth consecutive quarter, were up $24.1 million from the first quarter of 2014 and $55.3 million from the second quarter of 2013.
Tangible book value per share was $13.58 at the end of the second quarter of 2014. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 16.84% and a Tier I risk-based capital ratio of 27.06%.
Recent Transactions
On April 28, 2014, we announced the signing of a definitive agreement with Atlanta Bancorporation, Inc. and its wholly-owned subsidiary, Bank of Atlanta. Upon closing of the transaction, Atlanta Bancorporation will merge into State Bank Financial Corporation, immediately followed by the merger of Bank of Atlanta into State Bank and Trust Company, a wholly-owned subsidiary of State Bank Financial Corporation. Bank of Atlanta is headquartered in midtown Atlanta and operates one additional banking office in Duluth, Georgia. At March 31, 2014, Bank of Atlanta had approximately $198 million of total assets, $123 million of loans and $161 million of deposits. State Bank Financial Corporation has agreed to pay approximately $25 million in cash for all outstanding shares of Atlanta Bancorporation. The agreement has been unanimously approved by the Boards of Directors of both companies and is expected to close no later than the fourth quarter of 2014. Completion of the transaction is subject to certain closing conditions, including customary regulatory approvals. The transaction was approved by shareholders of Atlanta Bancorporation on June 25, 2014.
On June 24, 2014, we 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. 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 March 31, 2014, First Bank of Georgia had approximately $523 million of total assets, $317 million of loans and $428 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 the approval by the shareholders of Georgia-Carolina Bancshares.
Detailed Results
Supplemental tables displaying financial results for the second quarter of 2014, the previous four quarters and the first half of 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 1:00 p.m. EDT. The dial in number is 1.800.754.1336. Please dial in 10 minutes prior to the start of the call to register. You will be asked to provide your name and affiliation/company to join 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 June 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 the impact of the expiration of our loss share agreements, including our ability to exit loss share coverage successfully, scheduled amortization of the FDIC receivable for loss share agreements and accretion on covered loans, our ability to continue to build our core franchise, our strategic plan, including projections and expectations of future growth, and expectations with respect to our proposed merger transactions, including the expected timing, completion and other effects of the proposed transactions. 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 transactions, 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 will file 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 will include 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 to be filed with the SEC related to the proposed transaction will contain important information about State Bank Financial Corporation, Georgia-Carolina Bancshares, Inc. and the proposed transaction and related matters. WE URGE SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT AND PROXY/PROSPECTUS WHEN IT BECOMES AVAILABLE (AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE TRANSACTION OR INCORPORATED BY REFERENCE INTO THE REGISTRATION STATEMENT AND PROXY/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 provided in the proxy statement/prospectus described above when it is filed with the SEC. 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 | |||||||
2Q14 Financial Supplement: Table 1 | |||||||
Condensed Consolidated Financial Summary Results | |||||||
Quarterly (Unaudited) | |||||||
2Q14 change vs | |||||||
(Dollars in thousands, except per share amounts) | 2Q14 | 1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q14 | 2Q13 |
Income Statement Highlights | |||||||
Total interest income on invested funds | $ 2,522 | $ 2,493 | $ 2,416 | $ 2,587 | $ 2,693 | $ 29 | $ (171) |
Interest income on noncovered loans, including fees | 15,380 | 15,275 | 15,861 | 15,800 | 15,141 | 105 | 239 |
Accretion income on covered loans | 17,087 | 26,536 | 48,065 | 27,978 | 25,787 | (9,449) | (8,700) |
Total interest expense | 1,846 | 1,894 | 1,961 | 1,981 | 1,995 | (48) | (149) |
Net interest income | 33,143 | 42,410 | 64,381 | 44,384 | 41,626 | (9,267) | (8,483) |
Provision for loan losses (noncovered loans) | 1,000 | — | — | 905 | 665 | 1,000 | 335 |
Provision for loan losses (covered loans) | (299) | 590 | (98) | (636) | (1,288) | (889) | 989 |
Amortization of FDIC receivable for loss share agreements | (1,949) | (15,292) | (31,372) | (18,971) | (20,762) | 13,343 | 18,813 |
Noninterest income | 3,318 | 3,103 | 3,955 | 4,471 | 4,224 | 215 | (906) |
Noninterest expense | 22,076 | 23,083 | 22,718 | 23,124 | 25,461 | (1,007) | (3,385) |
Income before income taxes | 11,735 | 6,548 | 14,344 | 6,491 | 250 | 5,187 | 11,485 |
Income tax expense | 4,228 | 2,226 | 4,927 | 2,142 | 113 | 2,002 | 4,115 |
Net income | $ 7,507 | $ 4,322 | $ 9,417 | $ 4,349 | $ 137 | $ 3,185 | $ 7,370 |
Per Common Share Data | |||||||
Basic net income per share | $ .23 | $ .13 | $ .29 | $ .14 | $ — | $ .10 | $ .23 |
Diluted net income per share | .22 | .13 | .28 | .13 | — | .09 | .22 |
Cash dividends declared per share | .04 | .03 | .03 | .03 | .03 | .01 | .01 |
Book value per share at period end | 13.95 | 13.74 | 13.62 | 13.36 | 13.34 | .21 | .61 |
Tangible book value per share at period end | 13.58 | 13.36 | 13.24 | 12.97 | 12.94 | .22 | .64 |
Market price at period end | 16.91 | 17.69 | 18.19 | 15.87 | 15.03 | (.78) | 1.88 |
Period end shares outstanding | 32,130,645 | 32,123,645 | 32,094,145 | 32,076,645 | 31,926,331 | 7,000 | 204,314 |
Weighted Average Shares Outstanding: | |||||||
Basic | 32,126,260 | 32,094,473 | 32,086,781 | 31,998,901 | 31,918,677 | 31,787 | 207,583 |
Diluted | 33,589,797 | 33,644,135 | 33,519,550 | 33,296,650 | 33,124,681 | (54,338) | 465,116 |
Average Balance Sheet Highlights | |||||||
Noncovered loans, net of unearned income | $ 1,192,494 | $ 1,133,802 | $ 1,144,116 | $ 1,140,052 | $ 1,083,549 | $ 58,692 | $ 108,945 |
Covered loans | 236,178 | 250,824 | 258,600 | 305,487 | 351,955 | (14,646) | (115,777) |
Loans, net of unearned income | 1,428,672 | 1,384,626 | 1,402,716 | 1,445,539 | 1,435,504 | 44,046 | (6,832) |
Assets | 2,585,908 | 2,575,216 | 2,559,725 | 2,561,802 | 2,644,241 | 10,692 | (58,333) |
Deposits | 2,108,595 | 2,088,787 | 2,089,202 | 2,077,170 | 2,147,653 | 19,808 | (39,058) |
Liabilities | 2,141,733 | 2,136,111 | 2,130,231 | 2,134,590 | 2,217,002 | 5,622 | (75,269) |
Equity | 444,175 | 439,105 | 429,494 | 427,212 | 427,239 | 5,070 | 16,936 |
Tangible common equity | 432,073 | 426,828 | 417,030 | 414,516 | 414,181 | 5,245 | 17,892 |
Key Metrics (1) | |||||||
Return on average assets | 1.16% | .68% | 1.46% | .67% | .02% | .48% | 1.14% |
Return on average equity | 6.78 | 3.99 | 8.70 | 4.04 | .13 | 2.79 | 6.65 |
Yield on earning assets | 5.86 | 7.71 | 11.60 | 8.30 | 7.75 | (1.85) | (1.89) |
Cost of funds | .35 | .37 | .37 | .38 | .37 | (.02) | (.02) |
Rate on interest-bearing liabilities | .45 | .46 | .47 | .47 | .46 | (.01) | (.01) |
Net interest margin | 5.55 | 7.38 | 11.26 | 7.95 | 7.40 | (1.83) | (1.85) |
Average equity to average assets | 17.18 | 17.05 | 16.78 | 16.68 | 16.16 | .13 | 1.02 |
Leverage ratio | 16.84 | 16.67 | 16.55 | 16.20 | 15.57 | .17 | 1.27 |
Tier I risk-based capital ratio | 27.06 | 27.20 | 27.85 | 26.18 | 25.88 | (.14) | 1.18 |
Total risk-based capital ratio | 28.32 | 28.47 | 29.11 | 27.44 | 27.14 | (.15) | 1.18 |
Efficiency ratio | 63.82 | 76.19 | 61.28 | 77.16 | 101.14 | (12.37) | (37.32) |
Average loans to average deposits | 67.75 | 66.29 | 67.14 | 69.59 | 66.84 | 1.46 | .91 |
Noninterest-bearing deposits to total deposits | 21.82 | 22.02 | 22.00 | 20.50 | 20.22 | (.20) | 1.60 |
Nonperforming loans to total noncovered loans (2) | .16 | .18 | .20 | .25 | .32 | (.02) | (.16) |
Nonperforming assets to loans + ORE: | |||||||
Noncovered | .22 | .26 | .29 | .33 | .42 | (.04) | (.20) |
Covered | 9.90 | 13.23 | 15.22 | 15.11 | 13.56 | (3.33) | (3.66) |
(1) Income calculated on a fully tax-equivalent basis. | |||||||
(2) The ratio of nonperforming covered loans to total covered loans is not presented, as there are no covered loans designated as nonperforming. |
State Bank Financial Corporation | |||||||
2Q14 Financial Supplement: Table 2 | |||||||
Condensed Consolidated Balance Sheets | |||||||
Quarterly (Unaudited) | |||||||
2Q14 change vs | |||||||
(Dollars in thousands) | 2Q14 | 1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q14 | 2Q13 |
Assets | |||||||
Cash and amounts due from depository institutions | $ 8,333 | $ 7,314 | $ 8,518 | $ 7,888 | $ 6,783 | $ 1,019 | $ 1,550 |
Interest-bearing deposits in other financial institutions | 499,400 | 549,593 | 590,231 | 399,267 | 430,937 | (50,193) | 68,463 |
Cash and cash equivalents | 507,733 | 556,907 | 598,749 | 407,155 | 437,720 | (49,174) | 70,013 |
Investment securities available-for-sale | 494,874 | 454,053 | 387,048 | 374,838 | 370,146 | 40,821 | 124,728 |
Loans receivable: | |||||||
Noncovered under FDIC loss share agreements | 1,230,304 | 1,166,913 | 1,123,475 | 1,164,854 | 1,123,122 | 63,391 | 107,182 |
Covered under FDIC loss share agreements | 211,302 | 246,279 | 257,494 | 290,077 | 333,683 | (34,977) | (122,381) |
Allowance for loan losses (noncovered loans) | (17,885) | (16,858) | (16,656) | (16,427) | (15,805) | (1,027) | (2,080) |
Allowance for loan losses (covered loans) | (17,722) | (19,182) | (17,409) | (12,075) | (17,630) | 1,460 | (92) |
Net loans | 1,405,999 | 1,377,152 | 1,346,904 | 1,426,429 | 1,423,370 | 28,847 | (17,371) |
Mortgage loans held for sale | 726 | 1,552 | 897 | 885 | 753 | (826) | (27) |
Other real estate owned: | |||||||
Noncovered under FDIC loss share agreements | 729 | 901 | 965 | 974 | 1,097 | (172) | (368) |
Covered under FDIC loss share agreements | 23,209 | 37,536 | 46,222 | 51,651 | 52,345 | (14,327) | (29,136) |
Premises and equipment, net | 34,820 | 34,592 | 33,318 | 33,988 | 34,856 | 228 | (36) |
Goodwill | 10,381 | 10,381 | 10,381 | 10,381 | 10,381 | — | — |
Other intangibles, net | 1,663 | 1,824 | 1,986 | 2,150 | 2,449 | (161) | (786) |
FDIC receivable for loss share agreements, net | 39,250 | 65,248 | 103,160 | 156,549 | 210,557 | (25,998) | (171,307) |
Other assets | 60,896 | 77,232 | 71,075 | 62,101 | 64,023 | (16,336) | (3,127) |
Total assets | $ 2,580,280 | $ 2,617,378 | $ 2,600,705 | $ 2,527,101 | $ 2,607,697 | $ (37,098) | $ (27,417) |
Liabilities and Shareholders' Equity | |||||||
Noninterest-bearing deposits | $ 461,434 | $ 471,414 | $ 468,138 | $ 420,269 | $ 429,960 | $ (9,980) | $ 31,474 |
Interest-bearing deposits | 1,653,779 | 1,669,647 | 1,660,187 | 1,629,642 | 1,696,124 | (15,868) | (42,345) |
Total deposits | 2,115,213 | 2,141,061 | 2,128,325 | 2,049,911 | 2,126,084 | (25,848) | (10,871) |
Securities sold under agreements to repurchase | — | — | 1,216 | 1,082 | 3,576 | — | (3,576) |
Notes payable | 2,779 | 4,371 | 5,682 | 5,690 | 5,698 | (1,592) | (2,919) |
Other liabilities | 13,981 | 30,507 | 28,299 | 41,825 | 46,413 | (16,526) | (32,432) |
Total liabilities | 2,131,973 | 2,175,939 | 2,163,522 | 2,098,508 | 2,181,771 | (43,966) | (49,798) |
Total shareholders' equity | 448,307 | 441,439 | 437,183 | 428,593 | 425,926 | 6,868 | 22,381 |
Total liabilities and shareholders' equity | $ 2,580,280 | $ 2,617,378 | $ 2,600,705 | $ 2,527,101 | $ 2,607,697 | $ (37,098) | $ (27,417) |
Capital Ratios | |||||||
Average equity to average assets | 17.18% | 17.05% | 16.78% | 16.68% | 16.16% | 0.13% | 1.02% |
Leverage ratio | 16.84 | 16.67 | 16.55 | 16.20 | 15.57 | .17 | 1.27 |
Tier I risk-based capital ratio | 27.06 | 27.20 | 27.85 | 26.18 | 25.88 | (.14) | 1.18 |
Total risk-based capital ratio | 28.32 | 28.47 | 29.11 | 27.44 | 27.14 | (.15) | 1.18 |
State Bank Financial Corporation | |||||||
2Q14 Financial Supplement: Table 3 | |||||||
Condensed Consolidated Income Statements | |||||||
Quarterly (Unaudited) | |||||||
2Q14 change vs | |||||||
(Dollars in thousands, except per share amounts) | 2Q14 | 1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q14 | 2Q13 |
Total interest income on invested funds | $ 2,522 | $ 2,493 | $ 2,416 | $ 2,587 | $ 2,693 | $ 29 | $ (171) |
Interest income on noncovered loans, including fees | 15,380 | 15,275 | 15,861 | 15,800 | 15,141 | 105 | 239 |
Accretion income on covered loans | 17,087 | 26,536 | 48,065 | 27,978 | 25,787 | (9,449) | (8,700) |
Total interest expense | 1,846 | 1,894 | 1,961 | 1,981 | 1,995 | (48) | (149) |
Net interest income | 33,143 | 42,410 | 64,381 | 44,384 | 41,626 | (9,267) | (8,483) |
Provision for loan losses (noncovered loans) | 1,000 | — | — | 905 | 665 | 1,000 | 335 |
Provision for loan losses (covered loans) | (299) | 590 | (98) | (636) | (1,288) | (889) | 989 |
Net interest income after provision for loan losses | 32,442 | 41,820 | 64,479 | 44,115 | 42,249 | (9,378) | (9,807) |
Noninterest Income: | |||||||
Amortization of FDIC receivable for loss share agreements | (1,949) | (15,292) | (31,372) | (18,971) | (20,762) | 13,343 | 18,813 |
Service charges on deposits | 1,196 | 1,158 | 1,304 | 1,353 | 1,284 | 38 | (88) |
Mortgage banking income | 163 | 159 | 153 | 260 | 289 | 4 | (126) |
Gain on sale of investment securities | 12 | 11 | — | 717 | — | 1 | 12 |
Payroll fee income | 822 | 953 | 879 | 727 | 705 | (131) | 117 |
ATM income | 636 | 590 | 604 | 604 | 635 | 46 | 1 |
Bank-owned life insurance income | 329 | 329 | 333 | 342 | 335 | — | (6) |
Other | 160 | (97) | 682 | 468 | 976 | 257 | (816) |
Total noninterest income | 1,369 | (12,189) | (27,417) | (14,500) | (16,538) | 13,558 | 17,907 |
Noninterest Expense: | |||||||
Salaries and employee benefits | 14,575 | 15,077 | 14,500 | 14,794 | 15,547 | (502) | (972) |
Occupancy and equipment | 2,314 | 2,529 | 2,330 | 2,431 | 2,550 | (215) | (236) |
Legal and professional fees | 996 | 1,014 | 1,154 | 954 | 1,280 | (18) | (284) |
Marketing | 548 | 332 | 369 | 457 | 350 | 216 | 198 |
Federal deposit insurance premiums and other regulatory fees | 337 | 334 | 303 | 939 | 604 | 3 | (267) |
Loan collection and OREO costs | (32) | 624 | 733 | 374 | 1,944 | (656) | (1,976) |
Data processing | 1,714 | 1,672 | 1,595 | 1,551 | 1,504 | 42 | 210 |
Amortization of intangibles | 161 | 162 | 164 | 299 | 369 | (1) | (208) |
Other | 1,463 | 1,339 | 1,570 | 1,325 | 1,313 | 124 | 150 |
Total noninterest expense | 22,076 | 23,083 | 22,718 | 23,124 | 25,461 | (1,007) | (3,385) |
Income Before Income Taxes | 11,735 | 6,548 | 14,344 | 6,491 | 250 | 5,187 | 11,485 |
Income tax expense | 4,228 | 2,226 | 4,927 | 2,142 | 113 | 2,002 | 4,115 |
Net Income | $ 7,507 | $ 4,322 | $ 9,417 | $ 4,349 | $ 137 | $ 3,185 | $ 7,370 |
Basic Net Income Per Share | $ .23 | $ .13 | $ .29 | $ .14 | $ — | $ .10 | $ .23 |
Diluted Net Income Per Share | .22 | .13 | .28 | .13 | — | .09 | .22 |
Weighted Average Shares Outstanding: | |||||||
Basic | 32,126,260 | 32,094,473 | 32,086,781 | 31,998,901 | 31,918,677 | 31,787 | 207,583 |
Diluted | 33,589,797 | 33,644,135 | 33,519,550 | 33,296,650 | 33,124,681 | (54,338) | 465,116 |
State Bank Financial Corporation | |||
2Q14 Financial Supplement: Table 4 | |||
Condensed Consolidated Income Statements | |||
Year to Date (Unaudited) | |||
Six Months Ended June 30 | |||
(Dollars in thousands, except per share amounts) | 2014 | 2013 | YTD Change |
Total interest income on invested funds | $ 5,015 | $ 5,195 | $ (180) |
Interest income on noncovered loans, including fees | 30,655 | 29,515 | 1,140 |
Accretion income on covered loans | 43,623 | 46,423 | (2,800) |
Total interest expense | 3,740 | 3,991 | (251) |
Net interest income | 75,553 | 77,142 | (1,589) |
Provision for loan losses (noncovered loans) | 1,000 | 1,015 | (15) |
Provision for loan losses (covered loans) | 291 | (3,673) | 3,964 |
Net interest income after provision for loan losses | 74,262 | 79,800 | (5,538) |
Noninterest Income: | |||
Amortization of FDIC receivable for loss share agreements | (17,241) | (37,541) | 20,300 |
Service charges on deposits | 2,354 | 2,499 | (145) |
Mortgage banking income | 322 | 595 | (273) |
Gain on sale of investment securities | 23 | 364 | (341) |
Payroll fee income | 1,775 | 1,537 | 238 |
ATM income | 1,226 | 1,240 | (14) |
Bank-owned life insurance income | 658 | 679 | (21) |
Other | 63 | 1,431 | (1,368) |
Total noninterest income | (10,820) | (29,196) | 18,376 |
Noninterest Expense: | |||
Salaries and employee benefits | 29,652 | 32,942 | (3,290) |
Occupancy and equipment | 4,843 | 5,006 | (163) |
Legal and professional fees | 2,010 | 2,881 | (871) |
Marketing | 880 | 678 | 202 |
Federal insurance premiums and other regulatory fees | 671 | 1,073 | (402) |
Loan collection and OREO costs | 592 | 3,232 | (2,640) |
Data processing | 3,386 | 2,941 | 445 |
Amortization of intangibles | 323 | 739 | (416) |
Other | 2,802 | 2,633 | 169 |
Total noninterest expense | 45,159 | 52,125 | (6,966) |
Income (Loss) Before Income Taxes | 18,283 | (1,521) | 19,804 |
Income tax expense (benefit) | 6,454 | (502) | 6,956 |
Net Income (Loss) | $ 11,829 | $ (1,019) | $ 12,848 |
Basic Net Income (Loss) Per Share | $ .37 | $ (.03) | $ .40 |
Diluted Net Income (Loss) Per Share | .35 | (.03) | .38 |
Weighted Average Shares Outstanding: | |||
Basic | 32,110,454 | 31,913,754 | 196,700 |
Diluted | 33,617,054 | 31,913,754 | 1,703,300 |
State Bank Financial Corporation | |||||||
2Q14 Financial Supplement: Table 5 | |||||||
Condensed Consolidated Composition of Loans and Deposits at Period Ends | |||||||
Quarterly (Unaudited) | |||||||
2Q14 change vs | |||||||
(Dollars in thousands) | 2Q14 | 1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q14 | 2Q13 |
Composition of Loans | |||||||
Noncovered loans: | |||||||
Construction, land & land development | $ 271,525 | $ 259,488 | $ 251,043 | $ 285,855 | $ 295,756 | $ 12,037 | $ (24,231) |
Other commercial real estate | 616,418 | 593,260 | 550,474 | 552,579 | 508,620 | 23,158 | 107,798 |
Total commercial real estate | 887,943 | 852,748 | 801,517 | 838,434 | 804,376 | 35,195 | 83,567 |
Commercial & industrial | 55,555 | 28,140 | 30,145 | 27,573 | 33,908 | 27,415 | 21,647 |
Owner-occupied real estate | 167,129 | 171,221 | 174,858 | 181,882 | 186,652 | (4,092) | (19,523) |
Total commercial & industrial | 222,684 | 199,361 | 205,003 | 209,455 | 220,560 | 23,323 | 2,124 |
Residential real estate | 75,683 | 67,896 | 66,835 | 63,386 | 53,962 | 7,787 | 21,721 |
Consumer & other | 43,994 | 46,908 | 50,120 | 53,579 | 44,224 | (2,914) | (230) |
Total noncovered loans | 1,230,304 | 1,166,913 | 1,123,475 | 1,164,854 | 1,123,122 | 63,391 | 107,182 |
Covered loans: | |||||||
Construction, land & land development | 23,851 | 30,770 | 35,383 | 40,268 | 51,660 | (6,919) | (27,809) |
Other commercial real estate | 54,212 | 65,599 | 67,573 | 77,040 | 91,246 | (11,387) | (37,034) |
Total commercial real estate | 78,063 | 96,369 | 102,956 | 117,308 | 142,906 | (18,306) | (64,843) |
Commercial & industrial | 3,070 | 4,216 | 4,271 | 6,378 | 8,059 | (1,146) | (4,989) |
Owner-occupied real estate | 43,409 | 52,791 | 54,436 | 55,723 | 67,568 | (9,382) | (24,159) |
Total commercial & industrial | 46,479 | 57,007 | 58,707 | 62,101 | 75,627 | (10,528) | (29,148) |
Residential real estate | 86,371 | 92,509 | 95,240 | 109,806 | 114,036 | (6,138) | (27,665) |
Consumer & other | 389 | 394 | 591 | 862 | 1,114 | (5) | (725) |
Total covered loans | 211,302 | 246,279 | 257,494 | 290,077 | 333,683 | (34,977) | (122,381) |
Total loans | $ 1,441,606 | $ 1,413,192 | $ 1,380,969 | $ 1,454,931 | $ 1,456,805 | $ 28,414 | $ (15,199) |
Composition of Deposits | |||||||
Noninterest-bearing demand deposits | $ 461,434 | $ 471,414 | $ 468,138 | $ 420,269 | $ 429,960 | $ (9,980) | $ 31,474 |
Interest-bearing transaction accounts | 387,855 | 382,697 | 367,983 | 304,085 | 351,289 | 5,158 | 36,566 |
Savings and money market deposits | 898,833 | 903,198 | 892,136 | 908,410 | 911,415 | (4,365) | (12,582) |
Time deposits less than $100,000 | 155,918 | 162,002 | 168,611 | 177,634 | 186,874 | (6,084) | (30,956) |
Time deposits $100,000 or greater | 112,705 | 116,858 | 124,827 | 132,538 | 139,671 | (4,153) | (26,966) |
Brokered and wholesale time deposits | 98,468 | 104,892 | 106,630 | 106,975 | 106,875 | (6,424) | (8,407) |
Total deposits | $ 2,115,213 | $ 2,141,061 | $ 2,128,325 | $ 2,049,911 | $ 2,126,084 | $ (25,848) | $ (10,871) |
State Bank Financial Corporation | |||||||
2Q14 Financial Supplement: Table 6 | |||||||
Condensed Consolidated Asset Quality Data | |||||||
Quarterly (Unaudited) | |||||||
2Q14 change vs | |||||||
(Dollars in thousands) | 2Q14 | 1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q14 | 2Q13 |
Nonperforming noncovered assets: | |||||||
Nonaccrual loans | $ 1,063 | $ 1,265 | $ 1,396 | $ 1,978 | $ 2,704 | $ (202) | $ (1,641) |
Troubled debt restructurings | 875 | 866 | 869 | 876 | 890 | 9 | (15) |
Total nonperforming noncovered loans | 1,938 | 2,131 | 2,265 | 2,854 | 3,594 | (193) | (1,656) |
Other real estate owned | 729 | 901 | 965 | 974 | 1,097 | (172) | (368) |
Total nonperforming noncovered assets | 2,667 | 3,032 | 3,230 | 3,828 | 4,691 | (365) | (2,024) |
Nonperforming covered assets: | |||||||
Other real estate owned (1) | $ 23,209 | $ 37,536 | $ 46,222 | $ 51,651 | $ 52,345 | $ (14,327) | $ (29,136) |
Noncovered assets: | |||||||
Charge-offs | $ 79 | $ 136 | $ 67 | $ 330 | $ 8 | $ (57) | $ 71 |
Recoveries | 106 | 338 | 296 | 47 | 26 | (232) | 80 |
Net (recoveries) charge-offs | $ (27) | $ (202) | $ (229) | $ 283 | $ (18) | $ 175 | $ (9) |
Ratios: | |||||||
Annualized QTD net (recoveries) charge-offs to total average noncovered loans | (.01)% | (.07)% | (.08)% | .10% | (.01)% | .06% | —% |
Nonperforming loans to total noncovered loans (2) | .16 | .18 | .20 | .25 | .32 | (.02) | (.16) |
Nonperforming assets to loans + ORE: | |||||||
Noncovered | .22 | .26 | .29 | .33 | .42 | (.04) | (.20) |
Covered | 9.90 | 13.23 | 15.22 | 15.11 | 13.56 | (3.33) | (3.66) |
Allowance for loan losses to loans: | |||||||
Noncovered | 1.45 | 1.44 | 1.48 | 1.41 | 1.41 | .01 | .04 |
Covered | 8.39 | 7.79 | 6.76 | 4.16 | 5.28 | .60 | 3.11 |
(1) Total nonperforming assets for covered assets consist of other real estate only. There are no covered loans designated as nonperforming. | |||||||
(2) The ratio of nonperforming covered loans to total covered loans is not presented, as there are no covered loans designated as nonperforming. |
State Bank Financial Corporation | |||||||
2Q14 Financial Supplement: Table 7 | |||||||
Condensed Consolidated Average Balances and Yield Analysis | |||||||
Quarterly (Unaudited) | |||||||
2Q14 change vs | |||||||
(Dollars in thousands) | 2Q14 | 1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q14 | 2Q13 |
Selected Average Balances | |||||||
Interest-bearing deposits in other financial institutions | $ 490,009 | $ 518,362 | $ 489,046 | $ 398,391 | $ 465,823 | $ (28,353) | $ 24,186 |
Taxable investment securities | 475,739 | 425,158 | 374,416 | 369,485 | 352,955 | 50,581 | 122,784 |
Nontaxable investment securities | 5,501 | 5,538 | 5,559 | 5,836 | 6,436 | (37) | (935) |
Noncovered loans receivable (1) | 1,192,494 | 1,133,802 | 1,144,116 | 1,140,052 | 1,083,549 | 58,692 | 108,945 |
Covered loans receivable | 236,178 | 250,824 | 258,600 | 305,487 | 351,955 | (14,646) | (115,777) |
Total earning assets | 2,399,921 | 2,333,684 | 2,271,737 | 2,219,251 | 2,260,718 | 66,237 | 139,203 |
Total nonearning assets | 185,987 | 241,532 | 287,988 | 342,551 | 383,523 | (55,545) | (197,536) |
Total assets | 2,585,908 | 2,575,216 | 2,559,725 | 2,561,802 | 2,644,241 | 10,692 | (58,333) |
Interest-bearing transaction accounts | 376,143 | 357,988 | 338,502 | 320,168 | 360,221 | 18,155 | 15,922 |
Savings & money market deposits | 892,168 | 894,994 | 909,999 | 908,275 | 936,819 | (2,826) | (44,651) |
Time deposits less than $100,000 | 159,296 | 165,158 | 173,061 | 181,865 | 190,795 | (5,862) | (31,499) |
Time deposits $100,000 or greater | 114,652 | 122,217 | 129,384 | 137,147 | 142,364 | (7,565) | (27,712) |
Brokered and wholesale time deposits | 100,395 | 106,555 | 106,676 | 106,918 | 106,818 | (6,160) | (6,423) |
Notes payable | 3,365 | 5,212 | 5,686 | 5,695 | 5,026 | (1,847) | (1,661) |
Securities sold under agreements to repurchase | — | 727 | 675 | 2,438 | 5,083 | (727) | (5,083) |
Total interest-bearing liabilities | 1,646,019 | 1,652,851 | 1,663,983 | 1,662,506 | 1,747,126 | (6,832) | (101,107) |
Noninterest-bearing deposits | 465,941 | 441,875 | 431,580 | 422,797 | 410,636 | 24,066 | 55,305 |
Other liabilities | 29,773 | 41,385 | 34,668 | 49,287 | 59,240 | (11,612) | (29,467) |
Shareholders' equity | 444,175 | 439,105 | 429,494 | 427,212 | 427,239 | 5,070 | 16,936 |
Total liabilities and shareholders' equity | 2,585,908 | 2,575,216 | 2,559,725 | 2,561,802 | 2,644,241 | 10,692 | (58,333) |
Interest Margins (2) | |||||||
Interest-bearing deposits in other financial institutions | .26% | .27% | .27% | .31% | .27% | (.01)% | (.01)% |
Taxable investment securities | 1.84 | 2.03 | 2.19 | 2.42 | 2.68 | (.19) | (.84) |
Nontaxable investment securities, tax-equivalent basis (3) | 2.33 | 2.34 | 2.28 | 2.31 | 2.31 | (.01) | .02 |
Noncovered loans receivable, tax-equivalent basis (4) | 5.20 | 5.49 | 5.53 | 5.52 | 5.63 | (.29) | (.43) |
Covered loans receivable | 29.02 | 42.91 | 73.74 | 36.34 | 29.39 | (13.89) | (.37) |
Total earning assets | 5.86% | 7.71% | 11.60% | 8.30% | 7.75% | (1.85)% | (1.89)% |
Interest-bearing transaction accounts | .12 | .12 | .11 | .11 | .10 | — | .02 |
Savings & money market deposits | .45 | .44 | .43 | .42 | .42 | .01 | .03 |
Time deposits less than $100,000 | .53 | .54 | .55 | .57 | .59 | (.01) | (.06) |
Time deposits $100,000 or greater | .66 | .69 | .67 | .71 | .72 | (.03) | (.06) |
Brokered and wholesale time deposits | .95 | .93 | .93 | .93 | .93 | .02 | .02 |
Notes payable | 10.37 | 11.52 | 11.44 | 11.49 | 10.77 | (1.15) | (.40) |
Securities sold under agreements to repurchase | — | — | — | .16 | .08 | — | (.08) |
Total interest-bearing liabilities | .45 | .46 | .47 | .47 | .46 | (.01) | (.01) |
Net interest spread | 5.41 | 7.25 | 11.13 | 7.83 | 7.29 | (1.84) | (1.88) |
Net interest margin | 5.55% | 7.38% | 11.26% | 7.95% | 7.40% | (1.83)% | (1.85)% |
(1) Includes average nonaccrual loans of $1,970 for 2Q14, $2,098 for 1Q14, $2,642 for 4Q13, $2,371 for 3Q13, and $4,136 for 2Q13. | |||||||
(2) 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 $11 for 2Q14, $11 for 1Q14, $11 for 4Q13, $12 for 3Q13, and $13 for 2Q13. | |||||||
(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 $66 for 2Q14, $65 for 1Q14, $97 for 4Q13, $72 for 3Q13, and $73 for 2Q13. |