Investor Relations Contact: Jeremy Lucas 404.239.8626 / jeremy.lucas@statebt.com
State Bank Financial Corporation Reports First Quarter 2016 Financial Results
| ▪ | First quarter 2016 net income of $10.8 million, or $.29 per diluted share |
| ▪ | $104 million of loan growth |
| ▪ | Solid growth in noninterest income continues |
| ▪ | Announced transaction with NBG Bancorp, Inc. subsequent to quarter-end |
ATLANTA, GA, April 28, 2016 - State Bank Financial Corporation (NASDAQ: STBZ) today announced unaudited financial results for the quarter ended March 31, 2016. Net income for the first quarter of 2016
was $10.8 million, compared to $9.2 million in the first quarter of 2015 and $12.1 million in the fourth quarter of 2015. Fully diluted earnings per share were $.29 in the first quarter of 2016 compared to $.26 in the first quarter of 2015 and $.33 in the fourth quarter of 2015. Higher noninterest income and lower expenses offset lower net interest income, which declined primarily due to lower accretion income in the quarter.
On April 5, 2016, State Bank Financial announced the signing of a definitive agreement to acquire NBG Bancorp, Inc. and its wholly-owned subsidiary, The National Bank of Georgia, in a cash and stock transaction with a purchase price of approximately $68 million, or $45.45 per share. At March 31, 2016, The National Bank of Georgia had assets of approximately $407 million, loans of approximately $330 million, deposits of approximately $314 million, a branch and mortgage office in Athens, and a branch office in Gainesville, Georgia. The completion of the transaction is subject to receipt of regulatory approvals and satisfaction of other customary closing conditions, including approval of NBG Bancorp shareholders.
Additionally, on April 20, 2016, State Bank announced the addition of an SBA lending team, which will expand its government guaranteed lending program with a focus on providing greater geographic and industry diversification.
Joe Evans, Chairman and CEO of State Bank Financial, commented, "We are off to a great start in 2016. Our announced acquisition of The National Bank of Georgia and expansion of our SBA lending team, combined with solid operating fundamentals and impressive organic loan growth, reflect continued positive momentum on all of our strategic priorities."
Operating Highlights
Net interest income of $36.6 million in the first quarter of 2016 decreased from $40.6 million in the fourth quarter of 2015 and $39.1 million in the first quarter of 2015 primarily due to lower accretion income on loans. Interest income on loans and invested funds, excluding purchased credit impaired loans, for the
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first quarter of 2016 was $29.0 million, a $618,000 increase from the prior quarter and a $4.0 million increase from the first quarter of 2015. Accretion income on loans was $9.7 million in the first quarter of 2016, down from $14.2 million in the fourth quarter of 2015 and $16.1 million in the first quarter of 2015. Accretion income in the fourth quarter of 2015 and first quarter of 2015 included $4.1 million and $2.6 million, respectively, in gains from loan pool closings. Comparatively, there were no loan pool closings during the first quarter of 2016. As of March 31, 2016, approximately $86 million of accretable discount remains to be recognized as loan accretion income.
Tom Wiley, Vice Chairman and President, commented, "Financial results for the first quarter highlight tangible progress on all fronts. Fee income benefited from record performance in our payroll division, as well as solid quarters from our mortgage and SBA businesses. Loan growth approached $100 million while maintaining excellent credit metrics. We also demonstrated disciplined management of noninterest expenses, which on a linked-quarter basis were down nearly $2 million excluding OREO-related expenses. Looking forward, The National Bank of Georgia transaction and the hiring of a well-known and seasoned SBA lending team are aligned with our strategic priorities, and we believe both will meaningfully contribute to our future results."
Noninterest income, excluding amortization of the FDIC receivable, was $9.4 million in the first quarter of 2016, up from $8.1 million in the fourth quarter of 2015, but down from $10.3 million in the first quarter of 2015, which benefited from $2.0 million in prepayment fees. Excluding prepayment fees, noninterest income increased compared to the previous quarter and previous year periods due to higher mortgage banking and SBA income as a result of increased production volumes, as well as higher payroll fee income.
Total noninterest expense for the first quarter of 2016 was $28.9 million, a $664,000 decrease from
the fourth quarter of 2015 and a $1.2 million decrease from the first quarter of 2015. The linked-quarter decrease was due primarily to lower salary and employee benefit costs, which declined $1.2 million from the previous quarter. Operating expense, excluding loan collection and OREO costs, declined $1.8 million from the previous quarter and $767,000 from the first quarter of 2015.
Financial Condition
Total assets at March 31, 2016 were $3.53 billion, up from $3.47 billion at December 31, 2015. Period-end organic and purchased non-credit impaired loans increased to $2.1 billion at March 31, 2016, a net increase of $104.1 million from the fourth quarter of 2015. Purchased credit impaired loans decreased to $139.8 million at the end of the first quarter of 2016, a $5.8 million linked-quarter decline. Total loans were $2.3 billion at March 31, 2016, up $98.3 million from the fourth quarter of 2015. During the first quarter of 2016, certain investment securities were reclassified from available-for-sale to held-to-maturity in order to minimize the impact of future interest rate changes on accumulated other comprehensive income/loss. This reclassification will remain in effect until the investments are called or mature.
Total deposits at March 31, 2016 were $2.91 billion, up from $2.86 billion at the end of the fourth quarter of 2015. Period-end transaction accounts, comprised of noninterest-bearing demand deposits and interest-bearing transaction accounts, increased $16.2 million from the fourth quarter of 2015, as $65.3 million in growth in noninterest-bearing demand deposits was partially offset by a $49.1 million decline in interest-bearing transaction accounts. Noninterest-bearing demand deposits represented 30.7% of total deposits as of March 31, 2016. Average noninterest-bearing demand deposits increased $35.8 million from the fourth quarter of 2015, the 16th consecutive quarterly increase.
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Tangible book value per share was $13.49 at the end of the first quarter of 2016. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 14.59% and a Tier I risk-based capital ratio of 17.09%.
Detailed Results
Supplemental tables displaying financial results for the first quarter of 2016 and the previous four quarters are included with this press release.
Non-GAAP Financial Measures
This press release contains certain performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). For more information on these non-GAAP financial measures, please refer to 1Q16 Financial Supplement: Table 7, Condensed Operating Results to GAAP Earnings Reconciliation.
Conference Call
Chief Executive Officer Joe Evans, President Tom Wiley, Chief Financial Officer Sheila Ray, and Chief Credit Officer David Black will discuss financial and business results for the quarter on a conference call today at 11:00 a.m. ET.
Dial in number: 1.800.698.4476
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), with approximately $3.5 billion in assets as of March 31, 2016, is an Atlanta-based bank holding company for State Bank and Trust Company. State Bank operates 26 banking offices in Metro Atlanta, Middle Georgia and Augusta, Georgia, and seven mortgage origination offices.
To learn more about State Bank, visit www.statebt.com
Cautionary Note Regarding Forward-Looking Statements
Certain statements on our conference call may be "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 regarding our belief that we can maintain continued positive momentum on our strategic priorities, statements about expanding the SBA lending team and its ability to meaningfully contribute to future results, and statements regarding the merger with NBG Bancorp, Inc. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as our failure
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to integrate the new SBA lending team into our current SBA business as expected and their inability to transition their current clients to our platform, a downturn in the economy, the inability to obtain the requisite regulatory and shareholder approvals for the proposed transaction with NBG Bancorp and meet other closing terms and conditions, the reaction to the transaction of each bank’s customers, employees and counterparties, or difficulties related to the transition of services, volatile credit and financial markets both domestic and foreign, potential deterioration in real estate values, regulatory changes and excessive loan losses, as well as additional risks and uncertainties contained in the “Risk Factors” and forward-looking statements disclosure contained in State Bank Financial’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, 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.
Additional Information About the Merger and Where to Find It
In connection with the proposed merger transaction, State Bank Financial will file a registration statement on Form S-4 with the SEC to register State Bank Financial’s shares that will be issued to NBG Bancorp, Inc.’s shareholders in connection with the transaction. The registration statement will include a proxy statement of NBG Bancorp, Inc. and a prospectus of State Bank Financial, 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, NBG Bancorp, 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 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.
State Bank Financial and their directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of NBG Bancorp, 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 State Bank Financial’s directors and executive officers is included in State Bank Financial’s definitive proxy statement for 2016, which was filed with the SEC on April 15, 2016. You can obtain free copies of this document from State Bank Financial using the contact information above.
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| State Bank Financial Corporation | ||||||||||||||||||||||||||||
| 1Q16 Financial Supplement: Table 1 | ||||||||||||||||||||||||||||
| Condensed Consolidated Financial Summary Results | ||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||
| 1Q16 change vs | ||||||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts; taxable equivalent) | 1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | 4Q15 | 1Q15 | |||||||||||||||||||||
| Income Statement Highlights | ||||||||||||||||||||||||||||
| Interest income on loans | $ | 24,507 | $ | 24,392 | $ | 24,397 | $ | 23,174 | $ | 21,498 | $ | 115 | $ | 3,009 | ||||||||||||||
| Accretion income on loans | 9,743 | 14,240 | 11,156 | 8,365 | 16,069 | (4,497 | ) | (6,326 | ) | |||||||||||||||||||
| Interest income on invested funds | 4,675 | 4,142 | 4,054 | 4,037 | 3,629 | 533 | 1,046 | |||||||||||||||||||||
| Total interest income (1) | 38,925 | 42,774 | 39,607 | 35,576 | 41,196 | (3,849 | ) | (2,271 | ) | |||||||||||||||||||
| Interest expense | 2,113 | 1,994 | 1,977 | 1,972 | 1,979 | 119 | 134 | |||||||||||||||||||||
| Net interest income (1) | 36,812 | 40,780 | 37,630 | 33,604 | 39,217 | (3,968 | ) | (2,405 | ) | |||||||||||||||||||
| Provision for loan and lease losses | (134 | ) | 494 | (265 | ) | 64 | 3,193 | (628 | ) | (3,327 | ) | |||||||||||||||||
| Adjusted amortization of FDIC receivable for loss share agreements (1) (3) | — | — | — | (492 | ) | (1,448 | ) | — | 1,448 | |||||||||||||||||||
| Other noninterest income (4) | 9,391 | 8,128 | 8,894 | 9,319 | 10,250 | 1,263 | (859 | ) | ||||||||||||||||||||
| Total operating noninterest income (1) (3) | 9,391 | 8,128 | 8,894 | 8,827 | 8,802 | 1,263 | 589 | |||||||||||||||||||||
| Operating noninterest expense (1) (5) | 28,898 | 29,562 | 28,687 | 30,038 | 29,585 | (664 | ) | (687 | ) | |||||||||||||||||||
| Operating income before taxes (1) (3)(5) | 17,439 | 18,852 | 18,102 | 12,329 | 15,241 | (1,413 | ) | 2,198 | ||||||||||||||||||||
| Operating income tax expense (1) (6) | 6,601 | 6,731 | 6,696 | 4,620 | 5,729 | (130 | ) | 872 | ||||||||||||||||||||
| Operating income (1) (7) | 10,838 | 12,121 | 11,406 | 7,709 | 9,512 | (1,283 | ) | 1,326 | ||||||||||||||||||||
| Loss share termination, net of tax benefit | — | — | — | (8,921 | ) | — | — | — | ||||||||||||||||||||
| Severance costs, net of tax benefit | — | — | (1,847 | ) | (272 | ) | (224 | ) | — | 224 | ||||||||||||||||||
| Merger-related expenses, net of tax benefit | — | — | (440 | ) | (537 | ) | (84 | ) | — | 84 | ||||||||||||||||||
| Net income (loss) available to common shareholders | $ | 10,838 | $ | 12,121 | $ | 9,119 | $ | (2,021 | ) | $ | 9,204 | $ | (1,283 | ) | $ | 1,634 | ||||||||||||
| Common Share Data | ||||||||||||||||||||||||||||
| Basic net income (loss) per share | $ | .29 | $ | .33 | $ | .26 | $ | (.06 | ) | $ | .27 | $ | (.04 | ) | $ | .02 | ||||||||||||
| Diluted net income (loss) per share | .29 | .33 | .25 | (.06 | ) | .26 | (.04 | ) | .03 | |||||||||||||||||||
| Basic operating income per share (1) | .29 | .33 | .32 | .22 | .28 | (.04 | ) | .01 | ||||||||||||||||||||
| Diluted operating income per share (1) | .29 | .33 | .31 | .21 | .27 | (.04 | ) | .02 | ||||||||||||||||||||
| Cash dividends declared per share | .14 | .14 | .07 | .06 | .05 | — | .09 | |||||||||||||||||||||
| Book value per share | 14.73 | 14.47 | 14.88 | 14.62 | 14.81 | .26 | (.08 | ) | ||||||||||||||||||||
| Tangible book value per share (1) | 13.49 | 13.22 | 13.78 | 13.51 | 13.70 | .27 | (.21 | ) | ||||||||||||||||||||
| Market price per share (quarter end) | 19.76 | 21.03 | 20.68 | 21.70 | 21.00 | (1.27 | ) | (1.24 | ) | |||||||||||||||||||
| Common Shares Outstanding | ||||||||||||||||||||||||||||
| Common stock | 37,052,008 | 37,077,848 | 35,753,855 | 35,763,791 | 35,738,850 | (25,840 | ) | 1,313,158 | ||||||||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||||||
| Basic | 36,092,269 | 35,208,607 | 34,687,354 | 34,654,689 | 33,593,687 | 883,662 | 2,498,582 | |||||||||||||||||||||
| Diluted (8) | 36,187,662 | 36,140,474 | 36,003,068 | 34,654,689 | 34,862,324 | 47,188 | 1,325,338 | |||||||||||||||||||||
| Average Balance Sheet Highlights | ||||||||||||||||||||||||||||
| Loans | $ | 2,250,518 | $ | 2,203,993 | $ | 2,136,746 | $ | 2,099,798 | $ | 1,986,008 | $ | 46,525 | $ | 264,510 | ||||||||||||||
| Assets | 3,476,646 | 3,455,342 | 3,344,023 | 3,316,424 | 3,323,713 | 21,304 | 152,933 | |||||||||||||||||||||
| Deposits | 2,854,514 | 2,842,788 | 2,766,314 | 2,746,818 | 2,716,084 | 11,726 | 138,430 | |||||||||||||||||||||
| Liabilities | 79,688 | 77,852 | 48,211 | 44,347 | 82,361 | 1,836 | (2,673 | ) | ||||||||||||||||||||
| Equity | 542,444 | 534,702 | 529,498 | 525,259 | 525,268 | 7,742 | 17,176 | |||||||||||||||||||||
| Tangible common equity | 496,287 | 491,346 | 489,757 | 485,337 | 485,087 | 4,941 | 11,200 | |||||||||||||||||||||
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| State Bank Financial Corporation | |||||||||||||||||||||
| 1Q16 Financial Supplement: Table 1 (continued) | |||||||||||||||||||||
| Condensed Consolidated Financial Summary Results | |||||||||||||||||||||
| Quarterly (Unaudited) | |||||||||||||||||||||
| 1Q16 change vs | |||||||||||||||||||||
| (Dollars in thousands, except per share amounts; taxable equivalent) | 1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | 4Q15 | 1Q15 | ||||||||||||||
| Key Metrics (2) | |||||||||||||||||||||
| Operating return on average assets (1) (7) | 1.25 | % | 1.39 | % | 1.35 | % | .93 | % | 1.16 | % | (.14 | )% | .09 | % | |||||||
| Operating return on average equity (1) (7) | 8.04 | 8.99 | 8.55 | 5.89 | 7.34 | (.95 | ) | .70 | |||||||||||||
| Return on average assets | 1.25 | 1.39 | 1.08 | (.24 | ) | 1.12 | (.14 | ) | .13 | ||||||||||||
| Return on average equity | 8.04 | 8.99 | 6.83 | (1.54 | ) | 7.11 | (.95 | ) | .93 | ||||||||||||
| Yield on earning assets | 4.79 | 5.23 | 4.98 | 4.58 | 5.37 | (.44 | ) | (.58 | ) | ||||||||||||
| Cost of funds | .29 | .28 | .28 | .29 | .29 | .01 | — | ||||||||||||||
| Rate on interest-bearing liabilities | .42 | .39 | .40 | .39 | .38 | .03 | .04 | ||||||||||||||
| Net interest margin | 4.53 | 4.99 | 4.73 | 4.33 | 5.11 | (.46 | ) | (.58 | ) | ||||||||||||
| Net interest margin excluding accretion income (9) | 3.48 | 3.40 | 3.52 | 3.45 | 3.22 | .08 | .26 | ||||||||||||||
| Average tangible equity to average tangible assets (1) | 14.47 | 14.40 | 14.82 | 14.81 | 14.77 | .07 | (.30 | ) | |||||||||||||
| Leverage ratio (10) | 14.59 | 14.48 | 14.93 | 14.92 | 15.00 | .11 | (.41 | ) | |||||||||||||
| Tier I risk-based capital ratio (10) | 17.09 | 17.71 | 18.20 | 19.12 | 19.51 | (.62 | ) | (2.42 | ) | ||||||||||||
| Total risk-based capital ratio (10) | 18.13 | 18.75 | 19.28 | 20.28 | 20.70 | (.62 | ) | (2.57 | ) | ||||||||||||
| Operating efficiency ratio (1) (3) (5) | 62.55 | 60.44 | 61.66 | 70.79 | 61.61 | 2.11 | .94 | ||||||||||||||
| Average loans to average deposits | 78.84 | 77.53 | 77.24 | 76.44 | 73.12 | 1.31 | 5.72 | ||||||||||||||
| Noninterest-bearing deposits to total deposits | 30.68 | 28.87 | 29.45 | 27.85 | 24.91 | 1.81 | 5.77 | ||||||||||||||
(1) Non-GAAP financial measure. See Condensed Operating Results to GAAP Earnings Reconciliation (Table 7) for further information.
(2) Income statement ratios and yield/rate information are annualized for the applicable period.
| (3) | Excludes the one-time loss share expense termination charge of $14.5 million in the second quarter of 2015. |
| (4) | Includes all line items of noninterest income other than amortization of FDIC receivable for loss share agreements. |
(5) Excludes severance costs and merger-related expenses.
| (6) | Adjusted for income tax effect of taxable equivalent adjustments on interest income, the one-time loss share expense termination charge, severance costs and merger-related expenses. |
(7) Excludes the one-time loss share expense termination charge, severance costs and merger-related expenses, net of the income tax benefit.
(8) Since the Company had a net loss for the three month period ended June 30, 2015, all potential common shares were excluded from the
calculation of diluted earnings per share as they would have had an anti-dilutive effect for the period.
(9) Excludes accretion income on loans and average purchased credit impaired loans.
(10) Current period capital ratios are estimated as of the date of this earnings release.
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| State Bank Financial Corporation | ||||||||||||||||||||||||||||
| 1Q16 Financial Supplement: Table 2 | ||||||||||||||||||||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||
| 1Q16 change vs | ||||||||||||||||||||||||||||
| (Dollars in thousands) | 1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | 4Q15 | 1Q15 | |||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||
| Cash and amounts due from depository institutions | $ | 14,398 | $ | 12,175 | $ | 15,734 | $ | 21,903 | $ | 20,426 | $ | 2,223 | $ | (6,028 | ) | |||||||||||||
| Interest-bearing deposits in other financial institutions | 102,355 | 163,187 | 153,937 | 179,831 | 285,971 | (60,832 | ) | (183,616 | ) | |||||||||||||||||||
| Cash and cash equivalents | 116,753 | 175,362 | 169,671 | 201,734 | 306,397 | (58,609 | ) | (189,644 | ) | |||||||||||||||||||
| Investment securities available-for-sale | 849,576 | 887,705 | 831,548 | 815,277 | 819,609 | (38,129 | ) | 29,967 | ||||||||||||||||||||
| Investment securities held-to-maturity | 60,591 | — | — | — | — | 60,591 | 60,591 | |||||||||||||||||||||
| Loans | 2,258,533 | 2,160,217 | 2,139,691 | 2,042,186 | 2,000,189 | 98,316 | 258,344 | |||||||||||||||||||||
| Allowance for loan and lease losses | (30,345 | ) | (29,075 | ) | (28,930 | ) | (29,569 | ) | (29,982 | ) | (1,270 | ) | (363 | ) | ||||||||||||||
| Loans, net | 2,228,188 | 2,131,142 | 2,110,761 | 2,012,617 | 1,970,207 | 97,046 | 257,981 | |||||||||||||||||||||
| Loans held-for-sale | 55,219 | 54,933 | 59,563 | 64,047 | 45,211 | 286 | 10,008 | |||||||||||||||||||||
| Other real estate owned | 11,590 | 10,530 | 11,363 | 15,055 | 16,848 | 1,060 | (5,258 | ) | ||||||||||||||||||||
| Premises and equipment, net | 42,802 | 42,980 | 43,982 | 45,608 | 46,370 | (178 | ) | (3,568 | ) | |||||||||||||||||||
| Goodwill | 36,357 | 36,357 | 31,049 | 31,049 | 30,510 | — | 5,847 | |||||||||||||||||||||
| Other intangibles, net | 9,556 | 10,101 | 8,486 | 8,922 | 9,045 | (545 | ) | 511 | ||||||||||||||||||||
| SBA servicing rights | 2,882 | 2,626 | 2,463 | 2,185 | 1,902 | 256 | 980 | |||||||||||||||||||||
| FDIC receivable for loss share agreements | — | — | — | — | 17,098 | — | (17,098 | ) | ||||||||||||||||||||
| Bank-owned life insurance | 59,281 | 58,819 | 58,347 | 57,810 | 57,348 | 462 | 1,933 | |||||||||||||||||||||
| Other assets | 60,176 | 59,512 | 61,440 | 46,004 | 31,363 | 664 | 28,813 | |||||||||||||||||||||
| Total assets | $ | 3,532,971 | $ | 3,470,067 | $ | 3,388,673 | $ | 3,300,308 | $ | 3,351,908 | $ | 62,904 | $ | 181,063 | ||||||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||
| Noninterest-bearing deposits | $ | 891,511 | $ | 826,216 | $ | 823,146 | $ | 762,100 | $ | 691,938 | $ | 65,295 | $ | 199,573 | ||||||||||||||
| Interest-bearing deposits | 2,014,087 | 2,035,746 | 1,972,042 | 1,974,185 | 2,085,997 | (21,659 | ) | (71,910 | ) | |||||||||||||||||||
| Total deposits | 2,905,598 | 2,861,962 | 2,795,188 | 2,736,285 | 2,777,935 | 43,636 | 127,663 | |||||||||||||||||||||
| Securities sold under agreements to repurchase | 33,503 | 32,179 | 4,872 | 11,747 | 8,250 | 1,324 | 25,253 | |||||||||||||||||||||
| Notes payable | 1,808 | 1,812 | 2,761 | 2,765 | 2,769 | (4 | ) | (961 | ) | |||||||||||||||||||
| Other liabilities | 46,207 | 37,624 | 53,691 | 26,527 | 33,708 | 8,583 | 12,499 | |||||||||||||||||||||
| Total liabilities | 2,987,116 | 2,933,577 | 2,856,512 | 2,777,324 | 2,822,662 | 53,539 | 164,454 | |||||||||||||||||||||
| Total shareholders’ equity | 545,855 | 536,490 | 532,161 | 522,984 | 529,246 | 9,365 | 16,609 | |||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,532,971 | $ | 3,470,067 | $ | 3,388,673 | $ | 3,300,308 | $ | 3,351,908 | $ | 62,904 | $ | 181,063 | ||||||||||||||
| Capital Ratios (1) | ||||||||||||||||||||||||||||
| Average equity to average assets | 15.60 | % | 15.47 | % | 15.83 | % | 15.84 | % | 15.80 | % | .13 | % | (.20 | )% | ||||||||||||||
| Leverage ratio | 14.59 | 14.48 | 14.93 | 14.92 | 15.00 | .11 | (.41 | ) | ||||||||||||||||||||
| CET1 risk-based capital ratio | 17.09 | 17.71 | 18.20 | 19.12 | 19.51 | (.62 | ) | (2.42 | ) | |||||||||||||||||||
| Tier I risk-based capital ratio | 17.09 | 17.71 | 18.20 | 19.12 | 19.51 | (.62 | ) | (2.42 | ) | |||||||||||||||||||
| Total risk-based capital ratio | 18.13 | 18.75 | 19.28 | 20.28 | 20.70 | (.62 | ) | (2.57 | ) | |||||||||||||||||||
(1) Current period capital ratios are estimated as of the date of this earning release.
7
| State Bank Financial Corporation | ||||||||||||||||||||||||||||
| 1Q16 Financial Supplement: Table 3 | ||||||||||||||||||||||||||||
| Condensed Consolidated Income Statements | ||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||
| 1Q16 change vs | ||||||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | 1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | 4Q15 | 1Q15 | |||||||||||||||||||||
| Net Interest Income: | ||||||||||||||||||||||||||||
| Interest income on loans | $ | 24,342 | $ | 24,258 | $ | 24,218 | $ | 23,070 | $ | 21,400 | $ | 84 | $ | 2,942 | ||||||||||||||
| Accretion income on loans | 9,743 | 14,240 | 11,156 | 8,365 | 16,069 | (4,497 | ) | (6,326 | ) | |||||||||||||||||||
| Interest income on invested funds | 4,673 | 4,139 | 4,050 | 4,032 | 3,602 | 534 | 1,071 | |||||||||||||||||||||
| Interest expense | 2,113 | 1,994 | 1,977 | 1,972 | 1,979 | 119 | 134 | |||||||||||||||||||||
| Net interest income | 36,645 | 40,643 | 37,447 | 33,495 | 39,092 | (3,998 | ) | (2,447 | ) | |||||||||||||||||||
| Provision for loan and lease losses | (134 | ) | 494 | (265 | ) | 64 | 3,193 | (628 | ) | (3,327 | ) | |||||||||||||||||
| Net interest income after provision for loan and lease losses | 36,779 | 40,149 | 37,712 | 33,431 | 35,899 | (3,370 | ) | 880 | ||||||||||||||||||||
| Noninterest Income: | ||||||||||||||||||||||||||||
| Amortization of FDIC receivable for loss share agreements | — | — | — | (15,040 | ) | (1,448 | ) | — | 1,448 | |||||||||||||||||||
| Service charges on deposits | 1,386 | 1,495 | 1,491 | 1,501 | 1,489 | (109 | ) | (103 | ) | |||||||||||||||||||
| Mortgage banking income | 3,041 | 2,011 | 3,079 | 3,480 | 2,680 | 1,030 | 361 | |||||||||||||||||||||
| Payroll fee income | 1,327 | 1,165 | 1,004 | 956 | 1,158 | 162 | 169 | |||||||||||||||||||||
| SBA income | 1,502 | 1,316 | 1,720 | 1,380 | 1,123 | 186 | 379 | |||||||||||||||||||||
| ATM income | 745 | 741 | 742 | 773 | 725 | 4 | 20 | |||||||||||||||||||||
| Bank-owned life insurance income | 462 | 472 | 537 | 462 | 455 | (10 | ) | 7 | ||||||||||||||||||||
| Gain (loss) on sale of investment securities | 13 | 16 | 17 | (59 | ) | 380 | (3 | ) | (367 | ) | ||||||||||||||||||
| Other | 915 | 912 | 304 | 826 | 2,240 | 3 | (1,325 | ) | ||||||||||||||||||||
| Total noninterest income | 9,391 | 8,128 | 8,894 | (5,721 | ) | 8,802 | 1,263 | 589 | ||||||||||||||||||||
| Noninterest Expense: | ||||||||||||||||||||||||||||
| Salaries and employee benefits | 18,760 | 19,914 | 23,293 | 20,506 | 19,582 | (1,154 | ) | (822 | ) | |||||||||||||||||||
| Occupancy and equipment | 3,101 | 2,995 | 3,113 | 3,219 | 3,105 | 106 | (4 | ) | ||||||||||||||||||||
| Data processing | 2,075 | 2,378 | 2,097 | 2,435 | 2,280 | (303 | ) | (205 | ) | |||||||||||||||||||
| Legal and professional fees | 991 | 1,159 | 1,144 | 1,284 | 1,484 | (168 | ) | (493 | ) | |||||||||||||||||||
| Merger-related expenses | — | — | 717 | 876 | 137 | — | (137 | ) | ||||||||||||||||||||
| Marketing | 502 | 792 | 491 | 599 | 436 | (290 | ) | 66 | ||||||||||||||||||||
| Federal deposit insurance premiums and other regulatory fees | 562 | 518 | 621 | 455 | 506 | 44 | 56 | |||||||||||||||||||||
| Loan collection and OREO costs | 485 | (690 | ) | (1,198 | ) | (114 | ) | 405 | 1,175 | 80 | ||||||||||||||||||
| Amortization of intangibles | 545 | 509 | 436 | 442 | 417 | 36 | 128 | |||||||||||||||||||||
| Other | 1,877 | 1,987 | 1,702 | 1,655 | 1,735 | (110 | ) | 142 | ||||||||||||||||||||
| Total noninterest expense | 28,898 | 29,562 | 32,416 | 31,357 | 30,087 | (664 | ) | (1,189 | ) | |||||||||||||||||||
| Income (Loss) Before Income Taxes | 17,272 | 18,715 | 14,190 | (3,647 | ) | 14,614 | (1,443 | ) | 2,658 | |||||||||||||||||||
| Income tax expense (benefit) | 6,434 | 6,594 | 5,071 | (1,626 | ) | 5,410 | (160 | ) | 1,024 | |||||||||||||||||||
| Net Income (Loss) | $ | 10,838 | $ | 12,121 | $ | 9,119 | $ | (2,021 | ) | $ | 9,204 | $ | (1,283 | ) | $ | 1,634 | ||||||||||||
| Net Income (Loss) Per Share | ||||||||||||||||||||||||||||
| Basic | $ | .29 | $ | .33 | $ | .26 | $ | (.06 | ) | $ | .27 | $ | (.04 | ) | $ | .02 | ||||||||||||
| Diluted | .29 | .33 | .25 | (.06 | ) | .26 | (.04 | ) | .03 | |||||||||||||||||||
| Weighted Average Shares Outstanding | ||||||||||||||||||||||||||||
| Basic | 36,092,269 | 35,208,607 | 34,687,354 | 34,654,689 | 33,593,687 | 883,662 | 2,498,582 | |||||||||||||||||||||
| Diluted | 36,187,662 | 36,140,474 | 36,003,068 | 34,654,689 | 34,862,324 | 47,188 | 1,325,338 | |||||||||||||||||||||
8
| State Bank Financial Corporation | ||||||||||||||||||||||||||||
| 1Q16 Financial Supplement: Table 4 | ||||||||||||||||||||||||||||
| Condensed Consolidated Composition of Loans and Deposits at Period Ends | ||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||
| 1Q16 change vs | ||||||||||||||||||||||||||||
| (Dollars in thousands) | 1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | 4Q15 | 1Q15 | |||||||||||||||||||||
| Composition of Loans | ||||||||||||||||||||||||||||
| Organic loans (1): | ||||||||||||||||||||||||||||
| Construction, land & land development | $ | 452,654 | $ | 482,087 | $ | 412,788 | $ | 399,982 | $ | 388,148 | $ | (29,433 | ) | $ | 64,506 | |||||||||||||
| Other commercial real estate | 719,340 | 661,062 | 705,616 | 634,943 | 606,347 | 58,278 | 112,993 | |||||||||||||||||||||
| Total commercial real estate | 1,171,994 | 1,143,149 | 1,118,404 | 1,034,925 | 994,495 | 28,845 | 177,499 | |||||||||||||||||||||
| Residential real estate | 140,493 | 140,613 | 127,823 | 118,612 | 107,554 | (120 | ) | 32,939 | ||||||||||||||||||||
| Owner-occupied real estate | 222,347 | 219,636 | 212,171 | 205,805 | 191,557 | 2,711 | 30,790 | |||||||||||||||||||||
| Commercial, financial & agricultural | 249,192 | 181,513 | 165,305 | 126,157 | 108,929 | 67,679 | 140,263 | |||||||||||||||||||||
| Leases | 93,490 | 71,539 | 54,814 | 26,709 | 21,491 | 21,951 | 71,999 | |||||||||||||||||||||
| Consumer | 17,824 | 17,882 | 16,432 | 12,078 | 9,442 | (58 | ) | 8,382 | ||||||||||||||||||||
| Total organic loans | 1,895,340 | 1,774,332 | 1,694,949 | 1,524,286 | 1,433,468 | 121,008 | 461,872 | |||||||||||||||||||||
| Purchased non-credit impaired loans(2): | ||||||||||||||||||||||||||||
| Construction, land & land development | 13,959 | 18,598 | 37,326 | 61,089 | 67,129 | (4,639 | ) | (53,170 | ) | |||||||||||||||||||
| Other commercial real estate | 70,444 | 74,506 | 79,878 | 91,212 | 94,917 | (4,062 | ) | (24,473 | ) | |||||||||||||||||||
| Total commercial real estate | 84,403 | 93,104 | 117,204 | 152,301 | 162,046 | (8,701 | ) | (77,643 | ) | |||||||||||||||||||
| Residential real estate | 65,948 | 69,053 | 75,987 | 82,668 | 88,871 | (3,105 | ) | (22,923 | ) | |||||||||||||||||||
| Owner-occupied real estate | 57,519 | 61,313 | 69,619 | 73,409 | 77,946 | (3,794 | ) | (20,427 | ) | |||||||||||||||||||
| Commercial, financial & agricultural | 13,315 | 14,216 | 19,529 | 28,656 | 42,494 | (901 | ) | (29,179 | ) | |||||||||||||||||||
| Consumer | 2,213 | 2,624 | 3,080 | 3,505 | 4,517 | (411 | ) | (2,304 | ) | |||||||||||||||||||
| Total purchased non-credit impaired loans | 223,398 | 240,310 | 285,419 | 340,539 | 375,874 | (16,912 | ) | (152,476 | ) | |||||||||||||||||||
| Purchased credit impaired loans (3): | ||||||||||||||||||||||||||||
| Construction, land & land development | 13,245 | 14,252 | 16,473 | 20,002 | 18,791 | (1,007 | ) | (5,546 | ) | |||||||||||||||||||
| Other commercial real estate | 40,119 | 40,742 | 42,637 | 48,187 | 54,211 | (623 | ) | (14,092 | ) | |||||||||||||||||||
| Total commercial real estate | 53,364 | 54,994 | 59,110 | 68,189 | 73,002 | (1,630 | ) | (19,638 | ) | |||||||||||||||||||
| Residential real estate | 60,579 | 64,011 | 67,218 | 70,537 | 74,876 | (3,432 | ) | (14,297 | ) | |||||||||||||||||||
| Owner-occupied real estate | 24,834 | 25,364 | 30,655 | 35,036 | 39,210 | (530 | ) | (14,376 | ) | |||||||||||||||||||
| Commercial, financial & agricultural | 871 | 1,050 | 2,132 | 3,234 | 3,427 | (179 | ) | (2,556 | ) | |||||||||||||||||||
| Consumer | 147 | 156 | 208 | 365 | 332 | (9 | ) | (185 | ) | |||||||||||||||||||
| Total purchased credit impaired loans | 139,795 | 145,575 | 159,323 | 177,361 | 190,847 | (5,780 | ) | (51,052 | ) | |||||||||||||||||||
| Total loans | $ | 2,258,533 | $ | 2,160,217 | $ | 2,139,691 | $ | 2,042,186 | $ | 2,000,189 | $ | 98,316 | $ | 258,344 | ||||||||||||||
| Composition of Deposits | ||||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | $ | 891,511 | $ | 826,216 | $ | 823,146 | $ | 762,100 | $ | 691,938 | $ | 65,295 | $ | 199,573 | ||||||||||||||
| Interest-bearing transaction accounts | 539,322 | 588,391 | 499,434 | 497,715 | 562,378 | (49,069 | ) | (23,056 | ) | |||||||||||||||||||
| Savings and money market deposits | 1,017,930 | 1,074,190 | 1,059,770 | 1,038,292 | 1,052,677 | (56,260 | ) | (34,747 | ) | |||||||||||||||||||
| Time deposits less than $250,000 | 348,304 | 279,449 | 289,815 | 301,431 | 319,118 | 68,855 | 29,186 | |||||||||||||||||||||
| Time deposits $250,000 or greater | 64,494 | 41,439 | 56,750 | 59,105 | 58,076 | 23,055 | 6,418 | |||||||||||||||||||||
| Brokered and wholesale time deposits | 44,037 | 52,277 | 66,273 | 77,642 | 93,748 | (8,240 | ) | (49,711 | ) | |||||||||||||||||||
| Total deposits | $ | 2,905,598 | $ | 2,861,962 | $ | 2,795,188 | $ | 2,736,285 | $ | 2,777,935 | $ | 43,636 | $ | 127,663 | ||||||||||||||
(1) Loans originated by State Bank and Trust Company.
(2) Consists of loans purchased through the Bank of Atlanta and First Bank of Georgia acquisitions.
(3) Acquired loans, which at acquisition, management determined it was probable that we would be unable to collect all contractual principal and interest payments due, including all loans acquired from the FDIC.
9
| State Bank Financial Corporation | ||||||||||||||||||||||||||||
| 1Q16 Financial Supplement: Table 5 | ||||||||||||||||||||||||||||
| Condensed Consolidated Asset Quality Data | ||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||
| 1Q16 change vs | ||||||||||||||||||||||||||||
| (Dollars in thousands) | 1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | 4Q15 | 1Q15 | |||||||||||||||||||||
| Allowance for loan and lease losses on organic loans | ||||||||||||||||||||||||||||
| Beginning Balance | $ | 21,224 | $ | 20,176 | $ | 19,594 | $ | 19,424 | $ | 18,392 | $ | 1,048 | $ | 2,832 | ||||||||||||||
| Charge-offs | (240 | ) | (110 | ) | (63 | ) | (64 | ) | (76 | ) | (130 | ) | (164 | ) | ||||||||||||||
| Recoveries | 96 | 207 | 31 | 12 | 38 | (111 | ) | 58 | ||||||||||||||||||||
| Net (charge-offs) recoveries | (144 | ) | 97 | (32 | ) | (52 | ) | (38 | ) | (241 | ) | (106 | ) | |||||||||||||||
| Provision for loan and lease losses | 1,546 | 951 | 614 | 222 | 1,070 | 595 | 476 | |||||||||||||||||||||
| Ending Balance | $ | 22,626 | $ | 21,224 | $ | 20,176 | $ | 19,594 | $ | 19,424 | $ | 1,402 | $ | 3,202 | ||||||||||||||
| Allowance for loan and lease losses on purchased non-credit impaired loans | ||||||||||||||||||||||||||||
| Beginning Balance | $ | 53 | $ | — | $ | — | $ | — | $ | — | $ | 53 | $ | 53 | ||||||||||||||
| Charge-offs | (63 | ) | — | — | (46 | ) | (2 | ) | (63 | ) | (61 | ) | ||||||||||||||||
| Recoveries | 33 | 1 | 6 | — | — | 32 | 33 | |||||||||||||||||||||
| Net (charge-offs) recoveries | (30 | ) | 1 | 6 | (46 | ) | (2 | ) | (31 | ) | (28 | ) | ||||||||||||||||
| Provision for loan and lease losses | 143 | 52 | (6 | ) | 46 | 2 | 91 | 141 | ||||||||||||||||||||
| Ending Balance | $ | 166 | $ | 53 | $ | — | $ | — | $ | — | $ | 113 | $ | 166 | ||||||||||||||
| Allowance for loan and lease losses on purchased credit impaired loans | ||||||||||||||||||||||||||||
| Beginning Balance | $ | 7,798 | $ | 8,754 | $ | 9,975 | $ | 10,558 | $ | 10,246 | $ | (956 | ) | $ | (2,448 | ) | ||||||||||||
| Charge-offs | (1,516 | ) | (3,467 | ) | (3,282 | ) | (2,155 | ) | (3,229 | ) | 1,951 | 1,713 | ||||||||||||||||
| Recoveries | 3,094 | 3,020 | 2,934 | 1,227 | 924 | 74 | 2,170 | |||||||||||||||||||||
| Net (charge-offs) recoveries | 1,578 | (447 | ) | (348 | ) | (928 | ) | (2,305 | ) | 2,025 | 3,883 | |||||||||||||||||
| Provision for loan and lease losses (1) | (1,823 | ) | (509 | ) | (873 | ) | 345 | 2,617 | (1,314 | ) | (4,440 | ) | ||||||||||||||||
| Ending Balance | $ | 7,553 | $ | 7,798 | $ | 8,754 | $ | 9,975 | $ | 10,558 | $ | (245 | ) | $ | (3,005 | ) | ||||||||||||
| Nonperforming organic assets | ||||||||||||||||||||||||||||
| Nonaccrual loans | $ | 9,416 | $ | 5,096 | $ | 5,117 | $ | 4,971 | $ | 4,802 | $ | 4,320 | $ | 4,614 | ||||||||||||||
| Total nonperforming organic loans | 9,416 | 5,096 | 5,117 | 4,971 | 4,802 | 4,320 | 4,614 | |||||||||||||||||||||
| Other real estate owned | 33 | 33 | 500 | 160 | — | — | 33 | |||||||||||||||||||||
| Total nonperforming organic assets | $ | 9,449 | $ | 5,129 | $ | 5,617 | $ | 5,131 | $ | 4,802 | $ | 4,320 | $ | 4,647 | ||||||||||||||
| Nonperforming purchased non-credit impaired assets | ||||||||||||||||||||||||||||
| Nonaccrual loans | $ | 1,705 | $ | 1,280 | $ | 1,639 | $ | 232 | $ | 163 | $ | 425 | $ | 1,542 | ||||||||||||||
| Accruing TDRs | 923 | 577 | — | — | — | 346 | 923 | |||||||||||||||||||||
| Total nonperforming PNCI loans | 2,628 | 1,857 | 1,639 | 232 | 163 | 771 | 2,465 | |||||||||||||||||||||
| Other real estate owned | 22 | — | — | — | — | 22 | 22 | |||||||||||||||||||||
| Total nonperforming PNCI assets | $ | 2,650 | $ | 1,857 | $ | 1,639 | $ | 232 | $ | 163 | $ | 793 | $ | 2,487 | ||||||||||||||
| Ratios for organic assets | ||||||||||||||||||||||||||||
| Annualized QTD charge-offs (recoveries) on organic loans to average organic loans | .03 | % | (.02 | )% | .01 | % | .01 | % | .01 | % | .05 | % | .02 | % | ||||||||||||||
| Nonperforming organic loans to organic loans | .50 | .29 | .30 | .33 | .33 | .21 | .17 | |||||||||||||||||||||
| Nonperforming organic assets to organic loans + OREO | .50 | .29 | .33 | .34 | .33 | .21 | .17 | |||||||||||||||||||||
| Past due organic loans to organic loans | .47 | .10 | .08 | .08 | .11 | .37 | .36 | |||||||||||||||||||||
| Allowance for loan and lease losses on organic loans to organic loans | 1.19 | 1.20 | 1.19 | 1.29 | 1.36 | (.01 | ) | (.17 | ) | |||||||||||||||||||
10
| State Bank Financial Corporation | ||||||||||||||||||||||||||||
| 1Q16 Financial Supplement: Table 5 | ||||||||||||||||||||||||||||
| Condensed Consolidated Asset Quality Data | ||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||
| 1Q16 change vs | ||||||||||||||||||||||||||||
| (Dollars in thousands) | 1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | 4Q15 | 1Q15 | |||||||||||||||||||||
| Ratios for purchased non-credit impaired loans | ||||||||||||||||||||||||||||
| Annualized QTD charge-offs (recoveries) on PNCI loans to average PNCI loans | .05 | % | — | % | (.01 | )% | .04 | % | — | % | .05 | % | .05 | % | ||||||||||||||
| Nonperforming PNCI loans to PNCI loans | 1.18 | .77 | .57 | .07 | .04 | .41 | 1.14 | |||||||||||||||||||||
| Nonperforming PNCI assets to PNCI loans + OREO | 1.19 | .77 | .57 | .07 | .04 | .42 | 1.15 | |||||||||||||||||||||
| Past due PNCI loans to PNCI loans | .30 | .39 | .64 | .49 | .36 | (.09 | ) | (.06 | ) | |||||||||||||||||||
| Allowance for loan and lease losses on PNCI loans to PNCI loans | .07 | .02 | — | — | — | .05 | .07 | |||||||||||||||||||||
| Ratios for purchased credit impaired loans (2) | ||||||||||||||||||||||||||||
| Annualized QTD charge-offs (recoveries) on PCI loans to average PCI loans | (4.50 | )% | 1.20 | % | .83 | % | 2.07 | % | 4.81 | % | (5.70 | )% | (9.31 | )% | ||||||||||||||
| Past due PCI loans to PCI loans | 17.90 | 16.64 | 14.15 | 13.30 | 18.48 | 1.26 | (.58 | ) | ||||||||||||||||||||
| Allowance for loan and lease losses on PCI loans to PCI loans | 5.40 | 5.36 | 5.49 | 5.62 | 5.53 | .04 | (.13 | ) | ||||||||||||||||||||
(1) Provision for loan and lease losses amount attributable to FDIC loss share agreements for purchased credit impaired loans was $0 for
1Q16, $0 for 4Q15, $0 for 3Q15, $(549,000) for 2Q15, and $(496,000) for 1Q15.
(2) For each period presented, a portion of the Company's purchased credit impaired loans were contractually past due; however, such delinquencies
were included in the Company's performance expectations in determining the fair values of purchased credit impaired loans at each acquisition and at subsequent valuation dates. All purchased credit impaired loan cash flows and the timing of such cash flows continue to be estimable and probable of collection and thus accretion income continues to be recognized on these assets. As such, purchased credit impaired loans are not considered to be nonperforming assets.
11
| State Bank Financial Corporation | ||||||||||||||||||||||||||
| 1Q16 Financial Supplement: Table 6 | ||||||||||||||||||||||||||
| Condensed Consolidated Average Balances and Yield Analysis | ||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||
| 1Q16 change vs | ||||||||||||||||||||||||||
| (Dollars in thousands) | 1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | 4Q15 | 1Q15 | |||||||||||||||||||
| Average Balances | ||||||||||||||||||||||||||
| Interest-bearing deposits in other financial institutions | $ | 126,289 | $ | 188,966 | $ | 179,526 | $ | 191,653 | $ | 320,248 | (62,677 | ) | (193,959 | ) | ||||||||||||
| Investment securities | 892,365 | 850,127 | 837,786 | 821,998 | 807,002 | 42,238 | 85,363 | |||||||||||||||||||
| Loans, excluding purchased credit impaired (1) | 2,109,449 | 2,055,933 | 1,969,651 | 1,920,219 | 1,791,537 | 53,516 | 317,912 | |||||||||||||||||||
| Purchased credit impaired loans | 141,069 | 148,060 | 167,095 | 179,579 | 194,471 | (6,991 | ) | (53,402 | ) | |||||||||||||||||
| Total earning assets | 3,269,172 | 3,243,086 | 3,154,058 | 3,113,449 | 3,113,258 | 26,086 | 155,914 | |||||||||||||||||||
| Total nonearning assets | 207,474 | 212,256 | 189,965 | 202,975 | 210,455 | (4,782 | ) | (2,981 | ) | |||||||||||||||||
| Total assets | 3,476,646 | 3,455,342 | 3,344,023 | 3,316,424 | 3,323,713 | 21,304 | 152,933 | |||||||||||||||||||
| Interest-bearing transaction accounts | 538,926 | 559,113 | 486,514 | 522,147 | 507,087 | (20,187 | ) | 31,839 | ||||||||||||||||||
| Savings & money market deposits | 1,036,498 | 1,066,783 | 1,042,941 | 1,035,706 | 1,072,818 | (30,285 | ) | (36,320 | ) | |||||||||||||||||
| Time deposits less than $250,000 | 314,950 | 283,276 | 295,304 | 309,725 | 327,807 | 31,674 | (12,857 | ) | ||||||||||||||||||
| Time deposits $250,000 or greater | 53,786 | 50,784 | 57,511 | 57,375 | 56,529 | 3,002 | (2,743 | ) | ||||||||||||||||||
| Brokered and wholesale time deposits | 48,039 | 56,298 | 70,004 | 82,840 | 103,464 | (8,259 | ) | (55,425 | ) | |||||||||||||||||
| Other borrowings | 33,635 | 26,106 | 15,507 | 11,667 | 27,742 | 7,529 | 5,893 | |||||||||||||||||||
| Total interest-bearing liabilities | 2,025,834 | 2,042,360 | 1,967,781 | 2,019,460 | 2,095,447 | (16,526 | ) | (69,613 | ) | |||||||||||||||||
| Noninterest-bearing deposits | 862,315 | 826,534 | 814,040 | 739,025 | 648,379 | 35,781 | 213,936 | |||||||||||||||||||
| Other liabilities | 46,053 | 51,746 | 32,704 | 32,680 | 54,619 | (5,693 | ) | (8,566 | ) | |||||||||||||||||
| Shareholders’ equity | 542,444 | 534,702 | 529,498 | 525,259 | 525,268 | 7,742 | 17,176 | |||||||||||||||||||
| Total liabilities and shareholders' equity | 3,476,646 | 3,455,342 | 3,344,023 | 3,316,424 | 3,323,713 | 21,304 | 152,933 | |||||||||||||||||||
| Interest Margins (2) | ||||||||||||||||||||||||||
| Interest-bearing deposits in other financial institutions | .38 | % | .28 | % | .27 | % | .29 | % | .27 | % | .10 | % | .11 | % | ||||||||||||
| Investment securities, tax-equivalent basis (3) | 2.05 | 1.87 | 1.86 | 1.90 | 1.72 | .18 | .33 | |||||||||||||||||||
| Loans, excluding purchased credit impaired, tax-equivalent basis (4) | 4.67 | 4.71 | 4.91 | 4.84 | 4.87 | (.04 | ) | (.20 | ) | |||||||||||||||||
| Purchased credit impaired loans | 27.78 | 38.16 | 26.49 | 18.68 | 33.51 | (10.38 | ) | (5.73 | ) | |||||||||||||||||
| Total earning assets | 4.79 | % | 5.23 | % | 4.98 | % | 4.58 | % | 5.37 | % | (.44 | )% | (.58 | )% | ||||||||||||
| Interest-bearing transaction accounts | .12 | .13 | .13 | .14 | .14 | (.01 | ) | (.02 | ) | |||||||||||||||||
| Savings & money market deposits | .50 | .48 | .47 | .46 | .45 | .02 | .05 | |||||||||||||||||||
| Time deposits less than $250,000 | .51 | .39 | .38 | .36 | .34 | .12 | .17 | |||||||||||||||||||
| Time deposits $250,000 or greater | .53 | .33 | .36 | .36 | .30 | .20 | .23 | |||||||||||||||||||
| Brokered and wholesale time deposits | 1.07 | 1.03 | .97 | .97 | .94 | .04 | .13 | |||||||||||||||||||
| Other borrowings | .65 | .76 | 1.69 | 2.23 | .98 | (.11 | ) | (.33 | ) | |||||||||||||||||
| Total interest-bearing liabilities | .42 | % | .39 | % | .40 | % | .39 | % | .38 | % | .03 | % | .04 | % | ||||||||||||
| Net interest spread | 4.37 | % | 4.84 | % | 4.58 | % | 4.19 | % | 4.99 | % | (.47 | )% | (.62 | )% | ||||||||||||
| Net interest margin | 4.53 | % | 4.99 | % | 4.73 | % | 4.33 | % | 5.11 | % | (.46 | )% | (.58 | )% | ||||||||||||
| Net interest margin excluding accretion income | 3.48 | % | 3.40 | % | 3.52 | % | 3.45 | % | 3.22 | % | .08 | % | .26 | % | ||||||||||||
(1) Includes average nonaccrual loans of $8.9 million for 1Q16, $6.5 million for 4Q15, $5.9 million for 3Q15, $4.9 million for 2Q15, and $5.1 million for 1Q15.
(2) Interest income or expense 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 $2,000 for 1Q16, $3,000 for 4Q15, $4,000 for 3Q15, $5,000 for 2Q15, and $27,000 for 1Q15.
(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 $165,000 for 1Q16, $134,000 for 4Q15, $179,000 for 3Q15, $104,000 for 2Q15, and $98,000 for 1Q15.
12
| State Bank Financial Corporation | |||||||||||||||||||
| 1Q16 Financial Supplement: Table 7 | |||||||||||||||||||
| Condensed Operating Results to GAAP Earnings Reconciliation (1) | |||||||||||||||||||
| Quarterly (Unaudited) | |||||||||||||||||||
(dollars in thousands, except per share amounts; taxable equivalent) | 1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | ||||||||||||||
| Interest income reconciliation | |||||||||||||||||||
| Interest income - taxable equivalent | $ | 38,925 | $ | 42,774 | $ | 39,607 | $ | 35,576 | $ | 41,196 | |||||||||
| Taxable equivalent adjustment | (167 | ) | (137 | ) | (183 | ) | (109 | ) | (125 | ) | |||||||||
| Interest income (GAAP) | $ | 38,758 | $ | 42,637 | $ | 39,424 | $ | 35,467 | $ | 41,071 | |||||||||
| Net interest income reconciliation | |||||||||||||||||||
| Net interest income - taxable equivalent | $ | 36,812 | $ | 40,780 | $ | 37,630 | $ | 33,604 | $ | 39,217 | |||||||||
| Taxable equivalent adjustment | (167 | ) | (137 | ) | (183 | ) | (109 | ) | (125 | ) | |||||||||
| Net interest income (GAAP) | $ | 36,645 | $ | 40,643 | $ | 37,447 | $ | 33,495 | $ | 39,092 | |||||||||
| Adjusted amortization of FDIC receivable for loss share agreements | |||||||||||||||||||
| Adjusted amortization of FDIC receivable for loss share agreements | $ | — | $ | — | $ | — | $ | (492 | ) | $ | (1,448 | ) | |||||||
| Loss share termination | — | — | — | (14,548 | ) | — | |||||||||||||
| Amortization of FDIC receivable for loss share agreements (GAAP) | $ | — | $ | — | $ | — | $ | (15,040 | ) | $ | (1,448 | ) | |||||||
| Operating noninterest income reconciliation | |||||||||||||||||||
| Operating noninterest income | $ | 9,391 | $ | 8,128 | $ | 8,894 | $ | 8,827 | $ | 8,802 | |||||||||
| Loss share termination | — | — | — | (14,548 | ) | — | |||||||||||||
| Total noninterest income (GAAP) | $ | 9,391 | $ | 8,128 | $ | 8,894 | $ | (5,721 | ) | $ | 8,802 | ||||||||
| Operating noninterest expense reconciliation | |||||||||||||||||||
| Operating noninterest expense | $ | 28,898 | $ | 29,562 | $ | 28,687 | $ | 30,038 | $ | 29,585 | |||||||||
| Merger-related expenses | — | — | 717 | 876 | 137 | ||||||||||||||
| Severance costs | — | — | 3,012 | 443 | 365 | ||||||||||||||
| Total noninterest expense (GAAP) | $ | 28,898 | $ | 29,562 | $ | 32,416 | $ | 31,357 | $ | 30,087 | |||||||||
| Operating income before taxes reconciliation | |||||||||||||||||||
| Operating income before taxes | $ | 17,439 | $ | 18,852 | $ | 18,102 | $ | 12,329 | $ | 15,241 | |||||||||
| Loss share termination | — | — | — | (14,548 | ) | — | |||||||||||||
| Merger-related expenses | — | — | (717 | ) | (876 | ) | (137 | ) | |||||||||||
| Severance costs | — | — | (3,012 | ) | (443 | ) | (365 | ) | |||||||||||
| Taxable equivalent adjustment to interest income | (167 | ) | (137 | ) | (183 | ) | (109 | ) | (125 | ) | |||||||||
| Income (loss) before taxes (GAAP) | $ | 17,272 | $ | 18,715 | $ | 14,190 | $ | (3,647 | ) | $ | 14,614 | ||||||||
13
| State Bank Financial Corporation | |||||||||||||||||||
| 1Q16 Financial Supplement: Table 7 (continued) | |||||||||||||||||||
| Condensed Operating Results to GAAP Earnings Reconciliation (1) | |||||||||||||||||||
| Quarterly (Unaudited) | |||||||||||||||||||
(dollars in thousands, except per share amounts; taxable equivalent) | 1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | ||||||||||||||
| Operating income tax reconciliation | |||||||||||||||||||
| Operating income tax expense | $ | 6,601 | $ | 6,731 | $ | 6,696 | $ | 4,620 | $ | 5,729 | |||||||||
| Loss share termination tax benefit | — | — | — | (5,627 | ) | — | |||||||||||||
| Merger-related expenses tax benefit | — | — | (277 | ) | (339 | ) | (53 | ) | |||||||||||
| Severance costs tax benefit | — | — | (1,165 | ) | (171 | ) | (141 | ) | |||||||||||
| Taxable equivalent adjustment to interest income | (167 | ) | (137 | ) | (183 | ) | (109 | ) | (125 | ) | |||||||||
| Income tax expense (GAAP) | $ | 6,434 | $ | 6,594 | $ | 5,071 | $ | (1,626 | ) | $ | 5,410 | ||||||||
| Operating income reconciliation | |||||||||||||||||||
| Operating income | $ | 10,838 | $ | 12,121 | $ | 11,406 | $ | 7,709 | $ | 9,512 | |||||||||
| Loss share termination, net of tax benefit | — | — | — | (8,921 | ) | — | |||||||||||||
| Merger-related expenses, net of tax benefit | — | — | (440 | ) | (537 | ) | (84 | ) | |||||||||||
| Severance costs, net of tax benefit | — | — | (1,847 | ) | (272 | ) | (224 | ) | |||||||||||
| Net income (GAAP) | $ | 10,838 | $ | 12,121 | $ | 9,119 | $ | (2,021 | ) | $ | 9,204 | ||||||||
| Book value per common share reconciliation | |||||||||||||||||||
| Tangible book value per common share | $ | 13.49 | $ | 13.22 | $ | 13.78 | $ | 13.51 | $ | 13.70 | |||||||||
| Effect of goodwill and other intangibles | 1.24 | 1.25 | 1.10 | 1.11 | 1.11 | ||||||||||||||
| Book value per common share (GAAP) | $ | 14.73 | $ | 14.47 | $ | 14.88 | $ | 14.62 | $ | 14.81 | |||||||||
| Average equity to average assets reconciliation | |||||||||||||||||||
| Average tangible equity to average tangible assets | 14.47 | % | 14.40 | % | 14.82 | % | 14.81 | % | 14.77 | % | |||||||||
| Effect of average goodwill and other intangibles | 1.13 | 1.07 | 1.01 | 1.03 | 1.03 | ||||||||||||||
| Average equity to average assets (GAAP) | 15.60 | % | 15.47 | % | 15.83 | % | 15.84 | % | 15.80 | % | |||||||||
| Basic operating income per share reconciliation | |||||||||||||||||||
| Basic operating income per share | $ | .29 | $ | .33 | $ | .32 | $ | .22 | $ | .28 | |||||||||
| Effect of non-operating items | — | — | (.06 | ) | (.28 | ) | (.01 | ) | |||||||||||
| Basic net income (loss) per share (GAAP) | $ | .29 | $ | .33 | $ | .26 | $ | (.06 | ) | $ | .27 | ||||||||
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| State Bank Financial Corporation | |||||||||||||||||||
| 1Q16 Financial Supplement: Table 7 (continued) | |||||||||||||||||||
| Condensed Operating Results to GAAP Earnings Reconciliation (1) | |||||||||||||||||||
| Quarterly (Unaudited) | |||||||||||||||||||
(dollars in thousands, except per share amounts; taxable equivalent) | 1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | ||||||||||||||
| Diluted operating income per share reconciliation | |||||||||||||||||||
| Diluted operating income per share | $ | .29 | $ | .33 | $ | .31 | $ | .21 | $ | .27 | |||||||||
| Effect of non-operating items | — | — | (.06 | ) | (.27 | ) | (.01 | ) | |||||||||||
| Diluted net income (loss) per share (GAAP) | $ | .29 | $ | .33 | $ | .25 | $ | (.06 | ) | $ | .26 | ||||||||
| Operating return on average assets reconciliation | |||||||||||||||||||
| Operating return on average assets | 1.25 | % | 1.39 | % | 1.35 | % | .93 | % | 1.16 | % | |||||||||
| Effect of non-operating items | — | % | — | % | (.27 | )% | (1.17 | )% | (.04 | )% | |||||||||
| Return on average assets (GAAP) | 1.25 | % | 1.39 | % | 1.08 | % | (.24 | )% | 1.12 | % | |||||||||
| Operating return on average equity reconciliation | |||||||||||||||||||
| Operating return on average equity | 8.04 | % | 8.99 | % | 8.55 | % | 5.89 | % | 7.34 | % | |||||||||
| Effect of non-operating items | — | % | — | % | (1.72 | )% | (7.43 | )% | (.23 | )% | |||||||||
| Return on average equity (GAAP) | 8.04 | % | 8.99 | % | 6.83 | % | (1.54 | )% | 7.11 | % | |||||||||
| Efficiency ratio reconciliation | |||||||||||||||||||
| Operating efficiency ratio | 62.55 | % | 60.44 | % | 61.66 | % | 70.79 | % | 61.61 | % | |||||||||
| Effect of tax equivalent adjustment to interest income, loss share termination, merger-related expenses, and severance costs | .22 | % | .17 | 8.29 | 42.11 | 1.21 | |||||||||||||
| Efficiency ratio (GAAP) | 62.77 | % | 60.61 | % | 69.95 | % | 112.90 | % | 62.82 | % | |||||||||
(1) Management evaluates the capital position and operating performance of State Bank Financial Corporation (the “Company”) by using certain financial measures not calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), including: interest income - taxable equivalent, net interest income - taxable equivalent, adjusted (amortization) accretion of FDIC receivable for loss share agreements, other noninterest income, total operating noninterest income, operating noninterest expense, operating income before taxes - taxable equivalent, operating income tax expense, operating income, tangible book value per common share, tangible average equity to average assets, basic operating earnings per share, diluted operating earnings per share, operating return on average assets, operating return on average equity, operating efficiency ratio and average tangible equity to average tangible assets. The Company has included these non-GAAP financial measures in this press release for the applicable periods presented. Management believes that the presentation of these non-GAAP financial measures (a) provides important supplemental information that contributes to a proper understanding of the Company’s operating performance, (b) enables a more complete understanding of factors and trends affecting the Company’s business, and (c) allows investors to evaluate the Company’s performance in a manner similar to management, the financial services industry, bank stock analysts, and bank regulators. Management uses non-GAAP measures as follows: preparation of the Company’s operating budgets, monthly financial performance reporting, and presentation to investors of Company performance.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the accompanying table. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. These non-GAAP financial measures should not be considered as substitutes for GAAP financial measures, and the Company strongly encourages investors to review the GAAP financial measures included in this press release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this press release with other companies’ non-GAAP financial measures having the same or similar names.
15