Investor Relations Contact: Jeremy Lucas 404.239.8626 / jeremy.lucas@statebt.com
State Bank Financial Corporation Reports Second Quarter 2016 Financial Results
| ▪ | Second quarter 2016 net income of $13.8 million, or $.37 per diluted share |
| ▪ | Total loans increased $87 million, or 15% annualized |
| ▪ | Continued growth in key noninterest income initiatives |
| ▪ | Announced transaction with NBG Bancorp, Inc. in April and S Bankshares, Inc. in May |
ATLANTA, GA, July 28, 2016 - State Bank Financial Corporation (NASDAQ: STBZ) today announced unaudited financial results for the quarter ended June 30, 2016. Net income for the second quarter of 2016 was $13.8 million, compared to $10.8 million in the first quarter of 2016 and a net loss of $2.0 million in the second quarter of 2015 related to one-time expenses associated with the early termination of loss share agreements in May 2015. Fully diluted earnings per share were $.37 in the second quarter of 2016 compared to $.29 in the first quarter of 2016 and a fully diluted loss per share of $.06 in the second quarter of 2015.
Driven by solid loan growth during the quarter, interest income on loans improved to $25.4 million in the second quarter of 2016, a $1.1 million increase from the first quarter of 2016 and a $2.3 million increase from the second quarter of 2015. Higher accretion income on loans due to a gain from a loan pool closing and an increase in noninterest income also contributed to strong financial results in the second quarter.
Joe Evans, Chairman and CEO of State Bank Financial, commented, "We had a great second quarter with $13.8 million of net income as we continue to generate capital and increase tangible book value for shareholders. Further, we announced two bank acquisitions in the quarter that will accelerate the growth of our core earnings and add three attractive MSAs to our footprint. I am very pleased with our performance thus far in 2016 and with the positive momentum we are carrying into the second half of the year."
Operating Highlights
Net interest income of $41.7 million in the second quarter of 2016 increased from $36.6 million in the first quarter of 2016 and $33.5 million in the second quarter of 2015 primarily due to higher interest and accretion income on loans. Accretion income on loans was $14.0 million in the second quarter of 2016, up from $9.7 million in the first quarter of 2016 and $8.4 million in the second quarter of 2015. Accretion income in the second quarter of 2016 was positively impacted by a $4.1 million gain from one loan pool closing. Comparatively, there were no loan pool closings during the first quarter of 2016. As of June 30, 2016, approximately $75 million of accretable discount remains to be recognized as loan accretion income.
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Tom Wiley, Vice Chairman and President, commented, "Second quarter results demonstrated continued progress executing on our strategic priorities. Strong loan growth in the second quarter was complimented by our second highest noninterest income quarter ever, driven by outstanding results from mortgage, SBA, and Altera Payroll. The team is intensely focused on serving our clients’ needs and growing these fee income lines of business, which should benefit from adding scale to our existing platform."
Noninterest income was $10.2 million in the second quarter of 2016, up from $9.4 million in the first quarter of 2016 and $9.3 million in the second quarter of 2015, excluding amortization of the FDIC receivable. Growth in our key noninterest income initiatives continued in the second quarter of 2016, with income from mortgage banking increasing $510 thousand from the previous quarter to $3.6 million and SBA lending increasing $183 thousand from the previous quarter to $1.7 million. Payroll fee income of $1.1 million increased versus the prior year period, but decreased from the previous quarter due to what is typically a seasonally strong first quarter. Gain on sale of securities totaled $396 thousand in the second quarter of 2016.
Total noninterest expense for the second quarter of 2016 was $30.7 million, a $1.8 million increase from
the first quarter of 2016, and a $683 thousand decrease from the second quarter of 2015. Salary and employee benefit costs increased $1.9 million from the previous quarter due to the addition of an SBA lending team in April, new hires in mortgage banking and Patriot Capital, higher commissions on production, and other seasonal factors. Merger-related expenses totaled $319 thousand in the second quarter of 2016.
Financial Condition
Total assets at June 30, 2016 were $3.59 billion, up from $3.53 billion at March 31, 2016. Total loans were $2.3 billion at June 30, 2016, up $86.6 million from the first quarter of 2016. Period-end organic and purchased non-credit impaired loans increased to $2.2 billion at June 30, 2016, a net increase of $91.8 million from the first quarter of 2016. Purchased credit impaired loans decreased to $134.5 million at the end of the second quarter of 2016, a $5.3 million linked-quarter decline.
Total deposits at June 30, 2016 were $2.89 billion, down from $2.91 billion at the end of the first quarter of 2016. Period-end transaction accounts, comprised of noninterest-bearing demand deposits and interest-bearing transaction accounts, decreased $69.5 million from the first quarter of 2016 as a few large depositors reduced balances related to normal operating cycles of their business. Noninterest-bearing demand deposits represented 28.8% of total deposits as of June 30, 2016. Average noninterest-bearing demand deposits decreased $14.0 million from the first quarter of 2016.
The organic loan portfolio continued to perform well in the second quarter of 2016 as past due organic
loans represented .18% of total organic loans. Net charge-offs were $2.3 million during the quarter, almost entirely related to one loan that was classified and assigned a specific reserve of $2.2 million in the first quarter of 2016. The allowance as a percent of loans declined nine basis points to 1.10% at the end of the second quarter of 2016 and covers organic nonperforming assets by over three times.
Tangible book value per share was $13.77 at the end of the second quarter of 2016. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 14.56% and a Tier I risk-based capital ratio of 16.68%.
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Recent Transactions
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. At June 30, 2016, The National Bank of Georgia had assets of approximately $417 million, loans of approximately $342 million, deposits of approximately $322 million, a branch and mortgage office in Athens, and a branch office in Gainesville, Georgia. At a special meeting held on July 25, 2016, NBG Bancorp, Inc. received shareholder approval for the transaction. The completion of the transaction is subject to receipt of regulatory approvals and satisfaction of other customary closing conditions.
On May 19, 2016, State Bank Financial announced the signing of a definitive agreement to acquire S Bankshares, Inc. and its wholly-owned subsidiary, S Bank, in a cash and stock transaction with a purchase price of approximately $11 million. At June 30, 2016, S Bank had assets of approximately $109 million, loans of approximately $82 million, and deposits of approximately $91 million. S Bank has banking operations in Savannah, Glennville, Reidsville, and Hinesville, Georgia. The completion of the transaction is subject to receipt of regulatory approvals and satisfaction of other customary closing conditions, including approval of S Bankshares shareholders.
Detailed Results
Supplemental tables displaying financial results for the second quarter of 2016, the previous four quarters and the first half of 2016 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 2Q16 Financial Supplement: Table 8, Reconciliation of Non-GAAP Measures.
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: 1.800.686.5266
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 $3.6 billion in assets as of June 30, 2016, is an Atlanta-based bank holding company for State Bank and Trust Company. State Bank
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operates 25 full-service 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 in this press release and other information that we make publicly available from time to time are “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 have positive momentum to carry us into the second half of 2016, statements regarding our proposed mergers with NBG Bancorp, Inc. and S Bankshares, Inc., including our belief that these acquisitions will accelerate our core earnings and add attractive MSAs to our footprint, statements regarding our fee income lines of business, including that they should benefit from adding scale to our existing platform, and other statements regarding our strategic initiatives. Such forward-looking statements are subject to risks, uncertainties, and other factors, including a downturn in the economy, the inability to obtain the requisite regulatory approvals for the proposed transactions with NBG Bancorp and/or S Bankshares and the requisite shareholder approval for the proposed transaction with S Bankshares and meet other closing terms and conditions for each transaction, the reaction to the transactions 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 our 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 Mergers and Where to Find It
Proposed Merger with NBG Bancorp, Inc.
In connection with the proposed merger transaction with NBG Bancorp, Inc., State Bank Financial has filed a registration statement on Form S-4 (Registration Statement No. 333-211445) that includes a joint proxy statement/prospectus. The SEC declared the registration statement effective on June 15, 2016. A definitive proxy statement/prospectus dated June 15, 2016 was mailed on or about June 20, 2016 to the shareholders of NBG Bancorp, Inc. The registration statement and the proxy statement/prospectus filed with the SEC related to the proposed transaction contains 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, PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS FILED WITH OR THAT MAY BE FILED WITH THE SEC IN CONNECTION WITH THE TRANSACTION OR INCORPORATED BY REFERENCE INTO THE
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REGISTRATION STATEMENT AND PROXY STATEMENT/PROSPECTUS BECAUSE THOSE DOCUMENTS CONTAIN OR 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 its 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 are provided in the proxy statement/prospectus described above. 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.
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.
Proposed Merger with S Bankshares, Inc.
In connection with the proposed merger transaction with S Bankshares, Inc., 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 S Bankshares, Inc. shareholders in connection with the transaction. The registration statement will include a proxy statement of S Bankshares, 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, S Bankshares, Inc. and the proposed transaction and related matters. WE URGE SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT AND PROXY STATEMENT/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 STATEMENT/PROSPECTUS BECAUSE THOSE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION. Security holders may obtain free copies of these documents and other documents filed with the SEC on the SEC’s website at http://www.sec.gov. Security holders may also obtain free copies of the documents filed with the SEC by State Bank Financial 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 its directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of S Bankshares, 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.
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.
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| State Bank Financial Corporation | ||||||||||||||||||||||||||||
| 2Q16 Financial Supplement: Table 1 | ||||||||||||||||||||||||||||
| Condensed Consolidated Financial Summary Results | ||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||
| 2Q16 change vs | ||||||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q16 | 2Q15 | |||||||||||||||||||||
| Income Statement Highlights | ||||||||||||||||||||||||||||
| Interest income on loans | $ | 25,406 | $ | 24,342 | $ | 24,250 | $ | 24,218 | $ | 23,070 | $ | 1,064 | $ | 2,336 | ||||||||||||||
| Accretion income on loans | 13,961 | 9,743 | 14,240 | 11,156 | 8,365 | 4,218 | 5,596 | |||||||||||||||||||||
| Interest income on invested funds | 4,726 | 4,673 | 4,139 | 4,050 | 4,032 | 53 | 694 | |||||||||||||||||||||
| Total interest income | 44,093 | 38,758 | 42,629 | 39,424 | 35,467 | 5,335 | 8,626 | |||||||||||||||||||||
| Interest expense | 2,371 | 2,113 | 1,994 | 1,977 | 1,972 | 258 | 399 | |||||||||||||||||||||
| Net interest income | 41,722 | 36,645 | 40,635 | 37,447 | 33,495 | 5,077 | 8,227 | |||||||||||||||||||||
| Provision for loan and lease losses | 6 | (134 | ) | 494 | (265 | ) | 64 | 140 | (58 | ) | ||||||||||||||||||
| Amortization of FDIC receivable for loss share agreements | — | — | — | — | (15,040 | ) | — | 15,040 | ||||||||||||||||||||
| Other noninterest income (1) | 10,230 | 9,391 | 8,136 | 8,894 | 9,319 | 839 | 911 | |||||||||||||||||||||
| Total noninterest income | 10,230 | 9,391 | 8,136 | 8,894 | (5,721 | ) | 839 | 15,951 | ||||||||||||||||||||
| Total noninterest expense | 30,674 | 28,898 | 29,562 | 32,416 | 31,357 | 1,776 | (683 | ) | ||||||||||||||||||||
| Income before income taxes | 21,272 | 17,272 | 18,715 | 14,190 | (3,647 | ) | 4,000 | 24,919 | ||||||||||||||||||||
| Income tax expense | 7,433 | 6,434 | 6,594 | 5,071 | (1,626 | ) | 999 | 9,059 | ||||||||||||||||||||
| Net income (loss) available to common shareholders | $ | 13,839 | $ | 10,838 | $ | 12,121 | $ | 9,119 | $ | (2,021 | ) | $ | 3,001 | $ | 15,860 | |||||||||||||
| Common Share Data | ||||||||||||||||||||||||||||
| Basic net income (loss) per share | $ | .38 | $ | .29 | $ | .33 | $ | .26 | $ | (.06 | ) | $ | .09 | $ | .44 | |||||||||||||
| Diluted net income (loss) per share | .37 | .29 | .33 | .25 | (.06 | ) | .08 | .43 | ||||||||||||||||||||
| Cash dividends declared per share | .14 | .14 | .14 | .07 | .06 | — | .08 | |||||||||||||||||||||
| Book value per share | 15.00 | 14.73 | 14.47 | 14.88 | 14.62 | .27 | .38 | |||||||||||||||||||||
| Tangible book value per share (2) | 13.77 | 13.49 | 13.22 | 13.78 | 13.51 | .28 | .26 | |||||||||||||||||||||
| Market price per share (quarter end) | 20.35 | 19.76 | 21.03 | 20.68 | 21.70 | .59 | (1.35 | ) | ||||||||||||||||||||
| Common Shares Outstanding | ||||||||||||||||||||||||||||
| Common stock | 36,894,641 | 37,052,008 | 37,077,848 | 35,753,855 | 35,763,791 | (157,367 | ) | 1,130,850 | ||||||||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||||||
| Basic | 35,822,654 | 36,092,269 | 35,208,607 | 34,687,354 | 34,654,689 | (269,615 | ) | 1,167,965 | ||||||||||||||||||||
| Diluted (3) | 35,923,691 | 36,187,662 | 36,140,474 | 36,003,068 | 34,654,689 | (263,971 | ) | 1,269,002 | ||||||||||||||||||||
| Average Balance Sheet Highlights | ||||||||||||||||||||||||||||
| Loans | $ | 2,326,666 | $ | 2,250,518 | $ | 2,203,993 | $ | 2,136,746 | $ | 2,099,798 | $ | 76,148 | $ | 226,868 | ||||||||||||||
| Assets | 3,524,231 | 3,476,646 | 3,455,342 | 3,344,023 | 3,316,424 | 47,585 | 207,807 | |||||||||||||||||||||
| Deposits | 2,873,019 | 2,854,514 | 2,842,788 | 2,766,314 | 2,746,818 | 18,505 | 126,201 | |||||||||||||||||||||
| Equity | 546,838 | 542,444 | 534,702 | 529,498 | 525,259 | 4,394 | 21,579 | |||||||||||||||||||||
| Tangible common equity | 501,221 | 496,287 | 491,346 | 489,757 | 485,337 | 4,934 | 15,884 | |||||||||||||||||||||
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| State Bank Financial Corporation | |||||||||||||||||||||
| 2Q16 Financial Supplement: Table 1 (continued) | |||||||||||||||||||||
| Condensed Consolidated Financial Summary Results | |||||||||||||||||||||
| Quarterly (Unaudited) | |||||||||||||||||||||
| 2Q16 change vs | |||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q16 | 2Q15 | ||||||||||||||
| Key Metrics (4) | |||||||||||||||||||||
| Return on average assets | 1.58 | 1.25 | 1.39 | 1.08 | (.24 | ) | .33 | 1.82 | |||||||||||||
| Return on average equity | 10.18 | 8.04 | 8.99 | 6.83 | (1.54 | ) | 2.14 | 11.72 | |||||||||||||
| Yield on earning assets | 5.37 | 4.79 | 5.23 | 4.98 | 4.58 | .58 | .79 | ||||||||||||||
| Cost of funds | .33 | .29 | .28 | .28 | .29 | .04 | .04 | ||||||||||||||
| Rate on interest-bearing liabilities | .46 | .42 | .39 | .40 | .39 | .04 | .07 | ||||||||||||||
| Net interest margin | 5.08 | 4.53 | 4.99 | 4.73 | 4.33 | .55 | .75 | ||||||||||||||
| Net interest margin excluding accretion income (5) | 3.53 | 3.48 | 3.40 | 3.52 | 3.45 | .05 | .08 | ||||||||||||||
| Average tangible equity to average tangible assets (2) | 14.41 | 14.47 | 14.40 | 14.82 | 14.81 | (.06 | ) | (.40 | ) | ||||||||||||
| Leverage ratio (6) | 14.56 | 14.59 | 14.48 | 14.93 | 14.92 | (.03 | ) | (.36 | ) | ||||||||||||
| Tier I risk-based capital ratio (6) | 16.68 | 17.09 | 17.71 | 18.20 | 19.12 | (.41 | ) | (2.44 | ) | ||||||||||||
| Total risk-based capital ratio (6) | 17.59 | 18.13 | 18.75 | 19.28 | 20.28 | (.54 | ) | (2.69 | ) | ||||||||||||
| Efficiency ratio (7) | 59.04 | 62.77 | 60.61 | 69.95 | 112.90 | (3.73 | ) | (53.86 | ) | ||||||||||||
| Average loans to average deposits | 80.98 | 78.84 | 77.53 | 77.24 | 76.44 | 2.14 | 4.54 | ||||||||||||||
| Noninterest-bearing deposits to total deposits | 28.75 | 30.68 | 28.87 | 29.45 | 27.85 | (1.93 | ) | .90 | |||||||||||||
| (1) | Includes all line items of noninterest income other than amortization of FDIC receivable for loss share agreements. |
(2) Denotes a non-GAAP financial measure. See Reconciliation of Non-GAAP Measures (Table 8) for further information.
(3) Because we 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.
(4) Income statement ratios and yield/rate information are annualized for the applicable period.
(5) Excludes accretion income on loans and average purchased credit impaired loans.
(6) Current period capital ratios are estimated as of the date of this earnings release.
(7) Noninterest expenses divided by net interest income plus noninterest income.
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| State Bank Financial Corporation | ||||||||||||||||||||||||||||
| 2Q16 Financial Supplement: Table 2 | ||||||||||||||||||||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||
| 2Q16 change vs | ||||||||||||||||||||||||||||
| (Dollars in thousands) | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q16 | 2Q15 | |||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||
| Cash and amounts due from depository institutions | $ | 11,964 | $ | 14,398 | $ | 12,175 | $ | 15,734 | $ | 21,903 | $ | (2,434 | ) | $ | (9,939 | ) | ||||||||||||
| Interest-bearing deposits in other financial institutions | 70,603 | 102,355 | 163,187 | 153,937 | 179,831 | (31,752 | ) | (109,228 | ) | |||||||||||||||||||
| Cash and cash equivalents | 82,567 | 116,753 | 175,362 | 169,671 | 201,734 | (34,186 | ) | (119,167 | ) | |||||||||||||||||||
| Investment securities available-for-sale | 824,980 | 849,576 | 887,705 | 831,548 | 815,277 | (24,596 | ) | 9,703 | ||||||||||||||||||||
| Investment securities held-to-maturity | 63,080 | 60,591 | — | — | — | 2,489 | 63,080 | |||||||||||||||||||||
| Loans | 2,345,096 | 2,258,533 | 2,160,217 | 2,139,691 | 2,042,186 | 86,563 | 302,910 | |||||||||||||||||||||
| Allowance for loan and lease losses | (27,599 | ) | (30,345 | ) | (29,075 | ) | (28,930 | ) | (29,569 | ) | 2,746 | 1,970 | ||||||||||||||||
| Loans, net | 2,317,497 | 2,228,188 | 2,131,142 | 2,110,761 | 2,012,617 | 89,309 | 304,880 | |||||||||||||||||||||
| Loans held-for-sale | 71,302 | 55,219 | 54,933 | 59,563 | 64,047 | 16,083 | 7,255 | |||||||||||||||||||||
| Other real estate owned | 11,578 | 11,590 | 10,530 | 11,363 | 15,055 | (12 | ) | (3,477 | ) | |||||||||||||||||||
| Premises and equipment, net | 42,153 | 42,802 | 42,980 | 43,982 | 45,608 | (649 | ) | (3,455 | ) | |||||||||||||||||||
| Goodwill | 36,357 | 36,357 | 36,357 | 31,049 | 31,049 | — | 5,308 | |||||||||||||||||||||
| Other intangibles, net | 9,029 | 9,556 | 10,101 | 8,486 | 8,922 | (527 | ) | 107 | ||||||||||||||||||||
| SBA servicing rights | 3,165 | 2,882 | 2,626 | 2,463 | 2,185 | 283 | 980 | |||||||||||||||||||||
| Bank-owned life insurance | 59,749 | 59,281 | 58,819 | 58,347 | 57,810 | 468 | 1,939 | |||||||||||||||||||||
| Other assets | 65,046 | 60,176 | 59,512 | 61,440 | 46,004 | 4,870 | 19,042 | |||||||||||||||||||||
| Total assets | $ | 3,586,503 | $ | 3,532,971 | $ | 3,470,067 | $ | 3,388,673 | $ | 3,300,308 | $ | 53,532 | $ | 286,195 | ||||||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||
| Noninterest-bearing deposits | $ | 829,673 | $ | 891,511 | $ | 826,216 | $ | 823,146 | $ | 762,100 | $ | (61,838 | ) | $ | 67,573 | |||||||||||||
| Interest-bearing deposits | 2,055,817 | 2,014,087 | 2,035,746 | 1,972,042 | 1,974,185 | 41,730 | 81,632 | |||||||||||||||||||||
| Total deposits | 2,885,490 | 2,905,598 | 2,861,962 | 2,795,188 | 2,736,285 | (20,108 | ) | 149,205 | ||||||||||||||||||||
| Securities sold under agreements to repurchase | 33,923 | 33,503 | 32,179 | 4,872 | 11,747 | 420 | 22,176 | |||||||||||||||||||||
| FHLB borrowings | 62,000 | — | — | — | — | 62,000 | 62,000 | |||||||||||||||||||||
| Notes payable | 398 | 1,808 | 1,812 | 2,761 | 2,765 | (1,410 | ) | (2,367 | ) | |||||||||||||||||||
| Other liabilities | 51,336 | 46,207 | 37,624 | 53,691 | 26,527 | 5,129 | 24,809 | |||||||||||||||||||||
| Total liabilities | 3,033,147 | 2,987,116 | 2,933,577 | 2,856,512 | 2,777,324 | 46,031 | 255,823 | |||||||||||||||||||||
| Total shareholders’ equity | 553,356 | 545,855 | 536,490 | 532,161 | 522,984 | 7,501 | 30,372 | |||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,586,503 | $ | 3,532,971 | $ | 3,470,067 | $ | 3,388,673 | $ | 3,300,308 | $ | 53,532 | $ | 286,195 | ||||||||||||||
| Capital Ratios (1) | ||||||||||||||||||||||||||||
| Average equity to average assets | 15.52 | % | 15.60 | % | 15.47 | % | 15.83 | % | 15.84 | % | (.08 | )% | (.32 | )% | ||||||||||||||
| Leverage ratio | 14.56 | 14.59 | 14.48 | 14.93 | 14.92 | (.03 | ) | (.36 | ) | |||||||||||||||||||
| CET1 risk-based capital ratio | 16.68 | 17.09 | 17.71 | 18.20 | 19.12 | (.41 | ) | (2.44 | ) | |||||||||||||||||||
| Tier I risk-based capital ratio | 16.68 | 17.09 | 17.71 | 18.20 | 19.12 | (.41 | ) | (2.44 | ) | |||||||||||||||||||
| Total risk-based capital ratio | 17.59 | 18.13 | 18.75 | 19.28 | 20.28 | (.54 | ) | (2.69 | ) | |||||||||||||||||||
(1) Current period capital ratios are estimated as of the date of this earning release.
8
| State Bank Financial Corporation | ||||||||||||||||||||||||||||
| 2Q16 Financial Supplement: Table 3 | ||||||||||||||||||||||||||||
| Condensed Consolidated Income Statements | ||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||
| 2Q16 change vs | ||||||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q16 | 2Q15 | |||||||||||||||||||||
| Net Interest Income: | ||||||||||||||||||||||||||||
| Interest income on loans | $ | 25,406 | $ | 24,342 | $ | 24,250 | $ | 24,218 | $ | 23,070 | $ | 1,064 | $ | 2,336 | ||||||||||||||
| Accretion income on loans | 13,961 | 9,743 | 14,240 | 11,156 | 8,365 | 4,218 | 5,596 | |||||||||||||||||||||
| Interest income on invested funds | 4,726 | 4,673 | 4,139 | 4,050 | 4,032 | 53 | 694 | |||||||||||||||||||||
| Interest expense | 2,371 | 2,113 | 1,994 | 1,977 | 1,972 | 258 | 399 | |||||||||||||||||||||
| Net interest income | 41,722 | 36,645 | 40,635 | 37,447 | 33,495 | 5,077 | 8,227 | |||||||||||||||||||||
| Provision for loan and lease losses | 6 | (134 | ) | 494 | (265 | ) | 64 | 140 | (58 | ) | ||||||||||||||||||
| Net interest income after provision for loan and lease losses | 41,716 | 36,779 | 40,141 | 37,712 | 33,431 | 4,937 | 8,285 | |||||||||||||||||||||
| Noninterest Income: | ||||||||||||||||||||||||||||
| Amortization of FDIC receivable for loss share agreements | — | — | — | — | (15,040 | ) | — | 15,040 | ||||||||||||||||||||
| Service charges on deposits | 1,352 | 1,386 | 1,495 | 1,491 | 1,501 | (34 | ) | (149 | ) | |||||||||||||||||||
| Mortgage banking income | 3,551 | 3,041 | 2,011 | 3,079 | 3,480 | 510 | 71 | |||||||||||||||||||||
| Payroll fee income | 1,111 | 1,327 | 1,165 | 1,004 | 956 | (216 | ) | 155 | ||||||||||||||||||||
| SBA income | 1,685 | 1,502 | 1,316 | 1,720 | 1,380 | 183 | 305 | |||||||||||||||||||||
| ATM income | 769 | 745 | 741 | 742 | 773 | 24 | (4 | ) | ||||||||||||||||||||
| Bank-owned life insurance income | 468 | 462 | 472 | 537 | 462 | 6 | 6 | |||||||||||||||||||||
| Gain (loss) on sale of investment securities | 396 | 13 | 16 | 17 | (59 | ) | 383 | 455 | ||||||||||||||||||||
| Other | 898 | 915 | 920 | 304 | 826 | (17 | ) | 72 | ||||||||||||||||||||
| Total noninterest income | 10,230 | 9,391 | 8,136 | 8,894 | (5,721 | ) | 839 | 15,951 | ||||||||||||||||||||
| Noninterest Expense: | ||||||||||||||||||||||||||||
| Salaries and employee benefits | 20,662 | 18,760 | 19,914 | 23,293 | 20,506 | 1,902 | 156 | |||||||||||||||||||||
| Occupancy and equipment | 3,015 | 3,101 | 2,995 | 3,113 | 3,219 | (86 | ) | (204 | ) | |||||||||||||||||||
| Data processing | 2,211 | 2,075 | 2,378 | 2,097 | 2,435 | 136 | (224 | ) | ||||||||||||||||||||
| Legal and professional fees | 976 | 953 | 1,091 | 1,089 | 1,284 | 23 | (308 | ) | ||||||||||||||||||||
| Merger-related expenses | 319 | — | — | 717 | 876 | 319 | (557 | ) | ||||||||||||||||||||
| Marketing | 619 | 502 | 792 | 491 | 599 | 117 | 20 | |||||||||||||||||||||
| Federal deposit insurance premiums and other regulatory fees | 553 | 562 | 518 | 621 | 455 | (9 | ) | 98 | ||||||||||||||||||||
| Loan collection and OREO costs | (96 | ) | 485 | (690 | ) | (1,198 | ) | (114 | ) | (581 | ) | 18 | ||||||||||||||||
| Amortization of intangibles | 528 | 545 | 509 | 436 | 442 | (17 | ) | 86 | ||||||||||||||||||||
| Other | 1,887 | 1,915 | 2,055 | 1,757 | 1,655 | (28 | ) | 232 | ||||||||||||||||||||
| Total noninterest expense | 30,674 | 28,898 | 29,562 | 32,416 | 31,357 | 1,776 | (683 | ) | ||||||||||||||||||||
| Income (Loss) Before Income Taxes | 21,272 | 17,272 | 18,715 | 14,190 | (3,647 | ) | 4,000 | 24,919 | ||||||||||||||||||||
| Income tax expense (benefit) | 7,433 | 6,434 | 6,594 | 5,071 | (1,626 | ) | 999 | 9,059 | ||||||||||||||||||||
| Net Income (Loss) | $ | 13,839 | $ | 10,838 | $ | 12,121 | $ | 9,119 | $ | (2,021 | ) | $ | 3,001 | $ | 15,860 | |||||||||||||
| Net Income (Loss) Per Share | ||||||||||||||||||||||||||||
| Basic | $ | .38 | $ | .29 | $ | .33 | $ | .26 | $ | (.06 | ) | $ | .09 | $ | .44 | |||||||||||||
| Diluted | .37 | .29 | .33 | .25 | (.06 | ) | .08 | .43 | ||||||||||||||||||||
| Weighted Average Shares Outstanding | ||||||||||||||||||||||||||||
| Basic | 35,822,654 | 36,092,269 | 35,208,607 | 34,687,354 | 34,654,689 | (269,615 | ) | 1,167,965 | ||||||||||||||||||||
| Diluted | 35,923,691 | 36,187,662 | 36,140,474 | 36,003,068 | 34,654,689 | (263,971 | ) | 1,269,002 | ||||||||||||||||||||
9
| State Bank Financial Corporation | ||||||||||||
| 2Q16 Financial Supplement: Table 4 | ||||||||||||
| Condensed Consolidated Income Statements | ||||||||||||
| Year to Date (Unaudited) | ||||||||||||
| Six Months Ended June 30 | Change | |||||||||||
| (Dollars in thousands, except per share amounts) | 2016 | 2015 | ||||||||||
| Net Interest Income: | ||||||||||||
| Interest income on loans | $ | 49,748 | $ | 44,470 | $ | 5,278 | ||||||
| Accretion income on loans | 23,704 | 24,434 | (730 | ) | ||||||||
| Interest income on invested funds | 9,399 | 7,634 | 1,765 | |||||||||
| Interest expense | 4,484 | 3,951 | 533 | |||||||||
| Net interest income | 78,367 | 72,587 | 5,780 | |||||||||
| Provision for loan and lease losses | (128 | ) | 3,257 | (3,385 | ) | |||||||
| Net interest income after provision for loan and lease losses | 78,495 | 69,330 | 9,165 | |||||||||
| Noninterest Income: | ||||||||||||
| Amortization of FDIC receivable for loss share agreements | — | (16,488 | ) | 16,488 | ||||||||
| Service charges on deposits | 2,738 | 2,990 | (252 | ) | ||||||||
| Mortgage banking income | 6,592 | 6,160 | 432 | |||||||||
| Payroll fee income | 2,438 | 2,114 | 324 | |||||||||
| SBA income | 3,187 | 2,503 | 684 | |||||||||
| ATM income | 1,514 | 1,498 | 16 | |||||||||
| Bank-owned life insurance income | 930 | 917 | 13 | |||||||||
| Gain on sale of investment securities | 409 | 321 | 88 | |||||||||
| Other | 1,813 | 3,066 | (1,253 | ) | ||||||||
| Total noninterest income | 19,621 | 3,081 | 16,540 | |||||||||
| Noninterest Expense: | ||||||||||||
| Salaries and employee benefits | 39,422 | 40,088 | (666 | ) | ||||||||
| Occupancy and equipment | 6,116 | 6,324 | (208 | ) | ||||||||
| Data processing | 4,286 | 4,715 | (429 | ) | ||||||||
| Legal and professional fees | 1,929 | 2,768 | (839 | ) | ||||||||
| Merger-related expenses | 319 | 1,013 | (694 | ) | ||||||||
| Marketing | 1,121 | 1,035 | 86 | |||||||||
| Federal deposit insurance premiums and other regulatory fees | 1,115 | 961 | 154 | |||||||||
| Loan collection and OREO costs | 389 | 291 | 98 | |||||||||
| Amortization of intangibles | 1,073 | 859 | 214 | |||||||||
| Other | 3,802 | 3,390 | 412 | |||||||||
| Total noninterest expense | 59,572 | 61,444 | (1,872 | ) | ||||||||
| Income Before Income Taxes | 38,544 | 10,967 | 27,577 | |||||||||
| Income tax expense | 13,867 | 3,784 | 10,083 | |||||||||
| Net Income | $ | 24,677 | $ | 7,183 | $ | 17,494 | ||||||
| Net Income Per Share | ||||||||||||
| Basic | $ | .67 | $ | .20 | $ | .47 | ||||||
| Diluted | .67 | .19 | .48 | |||||||||
| Weighted Average Shares Outstanding | ||||||||||||
| Basic | 35,979,436 | 34,655,661 | 1,323,775 | |||||||||
| Diluted | 36,077,820 | 35,976,989 | 100,831 | |||||||||
10
| State Bank Financial Corporation | ||||||||||||||||||||||||||||
| 2Q16 Financial Supplement: Table 5 | ||||||||||||||||||||||||||||
| Condensed Consolidated Composition of Loans and Deposits at Period Ends | ||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||
| 2Q16 change vs | ||||||||||||||||||||||||||||
| (Dollars in thousands) | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q16 | 2Q15 | |||||||||||||||||||||
| Composition of Loans | ||||||||||||||||||||||||||||
| Organic loans (1): | ||||||||||||||||||||||||||||
| Construction, land & land development | $ | 470,672 | $ | 452,654 | $ | 482,087 | $ | 412,788 | $ | 399,982 | $ | 18,018 | $ | 70,690 | ||||||||||||||
| Other commercial real estate | 748,949 | 719,340 | 661,062 | 705,616 | 634,943 | 29,609 | 114,006 | |||||||||||||||||||||
| Total commercial real estate | 1,219,621 | 1,171,994 | 1,143,149 | 1,118,404 | 1,034,925 | 47,627 | 184,696 | |||||||||||||||||||||
| Residential real estate | 139,832 | 140,493 | 140,613 | 127,823 | 118,612 | (661 | ) | 21,220 | ||||||||||||||||||||
| Owner-occupied real estate | 238,059 | 222,347 | 219,636 | 212,171 | 205,805 | 15,712 | 32,254 | |||||||||||||||||||||
| Commercial, financial & agricultural | 290,245 | 233,169 | 181,513 | 165,305 | 126,157 | 57,076 | 164,088 | |||||||||||||||||||||
| Leases | 82,977 | 93,490 | 71,539 | 54,814 | 26,709 | (10,513 | ) | 56,268 | ||||||||||||||||||||
| Consumer | 34,124 | 33,847 | 17,882 | 16,432 | 12,078 | 277 | 22,046 | |||||||||||||||||||||
| Total organic loans | 2,004,858 | 1,895,340 | 1,774,332 | 1,694,949 | 1,524,286 | 109,518 | 480,572 | |||||||||||||||||||||
| Purchased non-credit impaired loans(2): | ||||||||||||||||||||||||||||
| Construction, land & land development | 11,427 | 13,959 | 18,598 | 37,326 | 61,089 | (2,532 | ) | (49,662 | ) | |||||||||||||||||||
| Other commercial real estate | 64,665 | 70,444 | 74,506 | 79,878 | 91,212 | (5,779 | ) | (26,547 | ) | |||||||||||||||||||
| Total commercial real estate | 76,092 | 84,403 | 93,104 | 117,204 | 152,301 | (8,311 | ) | (76,209 | ) | |||||||||||||||||||
| Residential real estate | 60,100 | 65,948 | 69,053 | 75,987 | 82,668 | (5,848 | ) | (22,568 | ) | |||||||||||||||||||
| Owner-occupied real estate | 56,414 | 57,519 | 61,313 | 69,619 | 73,409 | (1,105 | ) | (16,995 | ) | |||||||||||||||||||
| Commercial, financial & agricultural | 11,121 | 13,315 | 14,216 | 19,529 | 28,656 | (2,194 | ) | (17,535 | ) | |||||||||||||||||||
| Consumer | 1,978 | 2,213 | 2,624 | 3,080 | 3,505 | (235 | ) | (1,527 | ) | |||||||||||||||||||
| Total purchased non-credit impaired loans | 205,705 | 223,398 | 240,310 | 285,419 | 340,539 | (17,693 | ) | (134,834 | ) | |||||||||||||||||||
| Purchased credit impaired loans (3): | ||||||||||||||||||||||||||||
| Construction, land & land development | 13,310 | 13,245 | 14,252 | 16,473 | 20,002 | 65 | (6,692 | ) | ||||||||||||||||||||
| Other commercial real estate | 39,218 | 40,119 | 40,742 | 42,637 | 48,187 | (901 | ) | (8,969 | ) | |||||||||||||||||||
| Total commercial real estate | 52,528 | 53,364 | 54,994 | 59,110 | 68,189 | (836 | ) | (15,661 | ) | |||||||||||||||||||
| Residential real estate | 56,887 | 60,579 | 64,011 | 67,218 | 70,537 | (3,692 | ) | (13,650 | ) | |||||||||||||||||||
| Owner-occupied real estate | 24,281 | 24,834 | 25,364 | 30,655 | 35,036 | (553 | ) | (10,755 | ) | |||||||||||||||||||
| Commercial, financial & agricultural | 722 | 871 | 1,050 | 2,132 | 3,234 | (149 | ) | (2,512 | ) | |||||||||||||||||||
| Consumer | 115 | 147 | 156 | 208 | 365 | (32 | ) | (250 | ) | |||||||||||||||||||
| Total purchased credit impaired loans | 134,533 | 139,795 | 145,575 | 159,323 | 177,361 | (5,262 | ) | (42,828 | ) | |||||||||||||||||||
| Total loans | $ | 2,345,096 | $ | 2,258,533 | $ | 2,160,217 | $ | 2,139,691 | $ | 2,042,186 | $ | 86,563 | $ | 302,910 | ||||||||||||||
| Composition of Deposits | ||||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | $ | 829,673 | $ | 891,511 | $ | 826,216 | $ | 823,146 | $ | 762,100 | $ | (61,838 | ) | $ | 67,573 | |||||||||||||
| Interest-bearing transaction accounts | 531,676 | 539,322 | 588,391 | 499,434 | 497,715 | (7,646 | ) | 33,961 | ||||||||||||||||||||
| Savings and money market deposits | 1,097,098 | 1,017,930 | 1,074,190 | 1,059,770 | 1,038,292 | 79,168 | 58,806 | |||||||||||||||||||||
| Time deposits less than $250,000 | 345,999 | 348,304 | 279,449 | 289,815 | 301,431 | (2,305 | ) | 44,568 | ||||||||||||||||||||
| Time deposits $250,000 or greater | 63,686 | 64,494 | 41,439 | 56,750 | 59,105 | (808 | ) | 4,581 | ||||||||||||||||||||
| Brokered and wholesale time deposits | 17,358 | 44,037 | 52,277 | 66,273 | 77,642 | (26,679 | ) | (60,284 | ) | |||||||||||||||||||
| Total deposits | $ | 2,885,490 | $ | 2,905,598 | $ | 2,861,962 | $ | 2,795,188 | $ | 2,736,285 | $ | (20,108 | ) | $ | 149,205 | |||||||||||||
(1) Loans originated by State Bank and Trust Company.
(2) Consists of loans purchased in our acquisitions of Bank of Atlanta and First Bank of Georgia.
(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.
11
| State Bank Financial Corporation | ||||||||||||||||||||||||||||
| 2Q16 Financial Supplement: Table 6 | ||||||||||||||||||||||||||||
| Condensed Consolidated Asset Quality Data | ||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||
| 2Q16 change vs | ||||||||||||||||||||||||||||
| (Dollars in thousands) | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q16 | 2Q15 | |||||||||||||||||||||
| Allowance for loan and lease losses on organic loans | ||||||||||||||||||||||||||||
| Beginning Balance | $ | 22,626 | $ | 21,224 | $ | 20,176 | $ | 19,594 | $ | 19,424 | $ | 1,402 | $ | 3,202 | ||||||||||||||
| Charge-offs | (2,307 | ) | (240 | ) | (110 | ) | (63 | ) | (64 | ) | (2,067 | ) | (2,243 | ) | ||||||||||||||
| Recoveries | 54 | 96 | 207 | 31 | 12 | (42 | ) | 42 | ||||||||||||||||||||
| Net (charge-offs) recoveries | (2,253 | ) | (144 | ) | 97 | (32 | ) | (52 | ) | (2,109 | ) | (2,201 | ) | |||||||||||||||
| Provision for loan and lease losses | 1,635 | 1,546 | 951 | 614 | 222 | 89 | 1,413 | |||||||||||||||||||||
| Ending Balance | $ | 22,008 | $ | 22,626 | $ | 21,224 | $ | 20,176 | $ | 19,594 | $ | (618 | ) | $ | 2,414 | |||||||||||||
| Allowance for loan and lease losses on purchased non-credit impaired loans | ||||||||||||||||||||||||||||
| Beginning Balance | $ | 166 | $ | 53 | $ | — | $ | — | $ | — | $ | 113 | $ | 166 | ||||||||||||||
| Charge-offs | (1 | ) | (63 | ) | — | — | (46 | ) | 62 | 45 | ||||||||||||||||||
| Recoveries | 28 | 33 | 1 | 6 | — | (5 | ) | 28 | ||||||||||||||||||||
| Net (charge-offs) recoveries | 27 | (30 | ) | 1 | 6 | (46 | ) | 57 | 73 | |||||||||||||||||||
| Provision for loan and lease losses | (35 | ) | 143 | 52 | (6 | ) | 46 | (178 | ) | (81 | ) | |||||||||||||||||
| Ending Balance | $ | 158 | $ | 166 | $ | 53 | $ | — | $ | — | $ | (8 | ) | $ | 158 | |||||||||||||
| Allowance for loan and lease losses on purchased credit impaired loans | ||||||||||||||||||||||||||||
| Beginning Balance | $ | 7,553 | $ | 7,798 | $ | 8,754 | $ | 9,975 | $ | 10,558 | $ | (245 | ) | $ | (3,005 | ) | ||||||||||||
| Charge-offs | (606 | ) | (1,516 | ) | (3,467 | ) | (3,282 | ) | (2,155 | ) | 910 | 1,549 | ||||||||||||||||
| Recoveries | 80 | 3,094 | 3,020 | 2,934 | 1,227 | (3,014 | ) | (1,147 | ) | |||||||||||||||||||
| Net (charge-offs) recoveries | (526 | ) | 1,578 | (447 | ) | (348 | ) | (928 | ) | (2,104 | ) | 402 | ||||||||||||||||
| Provision for loan and lease losses (1) | (1,594 | ) | (1,823 | ) | (509 | ) | (873 | ) | 345 | 229 | (1,939 | ) | ||||||||||||||||
| Ending Balance | $ | 5,433 | $ | 7,553 | $ | 7,798 | $ | 8,754 | $ | 9,975 | $ | (2,120 | ) | $ | (4,542 | ) | ||||||||||||
| Nonperforming organic assets | ||||||||||||||||||||||||||||
| Nonaccrual loans | $ | 6,927 | $ | 9,416 | $ | 5,096 | $ | 5,117 | $ | 4,971 | $ | (2,489 | ) | $ | 1,956 | |||||||||||||
| Total nonperforming organic loans | 6,927 | 9,416 | 5,096 | 5,117 | 4,971 | (2,489 | ) | 1,956 | ||||||||||||||||||||
| Other real estate owned | 42 | 33 | 33 | 500 | 160 | 9 | (118 | ) | ||||||||||||||||||||
| Total nonperforming organic assets | $ | 6,969 | $ | 9,449 | $ | 5,129 | $ | 5,617 | $ | 5,131 | $ | (2,480 | ) | $ | 1,838 | |||||||||||||
| Nonperforming purchased non-credit impaired assets | ||||||||||||||||||||||||||||
| Nonaccrual loans | $ | 1,744 | $ | 1,705 | $ | 1,280 | $ | 1,639 | $ | 232 | $ | 39 | $ | 1,512 | ||||||||||||||
| Accruing TDRs | — | 923 | 577 | — | — | (923 | ) | — | ||||||||||||||||||||
| Total nonperforming PNCI loans | 1,744 | 2,628 | 1,857 | 1,639 | 232 | (884 | ) | 1,512 | ||||||||||||||||||||
| Other real estate owned | 21 | 22 | — | — | — | (1 | ) | 21 | ||||||||||||||||||||
| Total nonperforming PNCI assets | $ | 1,765 | $ | 2,650 | $ | 1,857 | $ | 1,639 | $ | 232 | $ | (885 | ) | $ | 1,533 | |||||||||||||
| Ratios for organic assets | ||||||||||||||||||||||||||||
| Annualized QTD charge-offs (recoveries) on organic loans to average organic loans | .46 | % | .03 | % | (.02 | )% | .01 | % | .01 | % | .43 | % | .45 | % | ||||||||||||||
| Nonperforming organic loans to organic loans | .35 | .50 | .29 | .30 | .33 | (.15 | ) | .02 | ||||||||||||||||||||
| Nonperforming organic assets to organic loans + OREO | .35 | .50 | .29 | .33 | .34 | (.15 | ) | .01 | ||||||||||||||||||||
| Past due organic loans to organic loans | .18 | .47 | .10 | .08 | .08 | (.29 | ) | .10 | ||||||||||||||||||||
| Allowance for loan and lease losses on organic loans to organic loans | 1.10 | 1.19 | 1.20 | 1.19 | 1.29 | (.09 | ) | (.19 | ) | |||||||||||||||||||
12
| State Bank Financial Corporation | ||||||||||||||||||||||||||||
| 2Q16 Financial Supplement: Table 6 (continued) | ||||||||||||||||||||||||||||
| Condensed Consolidated Asset Quality Data | ||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||
| 2Q16 change vs | ||||||||||||||||||||||||||||
| (Dollars in thousands) | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q16 | 2Q15 | |||||||||||||||||||||
| Ratios for purchased non-credit impaired loans | ||||||||||||||||||||||||||||
| Annualized QTD charge-offs (recoveries) on PNCI loans to average PNCI loans | (.05 | )% | .05 | % | — | % | (.01 | )% | .04 | % | (.10 | )% | (.09 | )% | ||||||||||||||
| Nonperforming PNCI loans to PNCI loans | .85 | 1.18 | .77 | .57 | .07 | (.33 | ) | .78 | ||||||||||||||||||||
| Nonperforming PNCI assets to PNCI loans + OREO | .86 | 1.19 | .77 | .57 | .07 | (.33 | ) | .79 | ||||||||||||||||||||
| Past due PNCI loans to PNCI loans | .40 | .30 | .39 | .64 | .49 | .10 | (.09 | ) | ||||||||||||||||||||
| Allowance for loan and lease losses on PNCI loans to PNCI loans | .08 | .07 | .02 | — | — | .01 | .08 | |||||||||||||||||||||
| Ratios for purchased credit impaired loans (2) | ||||||||||||||||||||||||||||
| Annualized QTD charge-offs (recoveries) on PCI loans to average PCI loans | 1.57 | % | (4.50 | )% | 1.20 | % | .83 | % | 2.07 | % | 6.07 | % | (.50 | )% | ||||||||||||||
| Past due PCI loans to PCI loans | 10.92 | 17.90 | 16.64 | 14.15 | 13.30 | (6.98 | ) | (2.38 | ) | |||||||||||||||||||
| Allowance for loan and lease losses on PCI loans to PCI loans | 4.04 | 5.40 | 5.36 | 5.49 | 5.62 | (1.36 | ) | (1.58 | ) | |||||||||||||||||||
(1) Provision for loan and lease losses amount attributable to FDIC loss share agreements for purchased credit impaired loans was $0 for each of
2Q16, 1Q16, 4Q15, and 3Q15, and was $(549,000) for 2Q15.
(2) For each period presented, a portion of our purchased credit impaired loans were contractually past due; however, such delinquencies
were included in our 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,we do not consider purchased credit impaired loans to be nonperforming assets.
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| State Bank Financial Corporation | ||||||||||||||||||||||||||
| 2Q16 Financial Supplement: Table 7 | ||||||||||||||||||||||||||
| Condensed Consolidated Average Balances and Yield Analysis | ||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||
| 2Q16 change vs | ||||||||||||||||||||||||||
| (Dollars in thousands) | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q16 | 2Q15 | |||||||||||||||||||
| Average Balances | ||||||||||||||||||||||||||
| Interest-bearing deposits in other financial institutions | $ | 80,638 | $ | 126,289 | $ | 188,966 | $ | 179,526 | $ | 191,653 | (45,651 | ) | (111,015 | ) | ||||||||||||
| Investment securities | 905,019 | 892,365 | 850,127 | 837,786 | 821,998 | 12,654 | 83,021 | |||||||||||||||||||
| Loans, excluding purchased credit impaired (1) | 2,191,506 | 2,109,449 | 2,055,933 | 1,969,651 | 1,920,219 | 82,057 | 271,287 | |||||||||||||||||||
| Purchased credit impaired loans | 135,160 | 141,069 | 148,060 | 167,095 | 179,579 | (5,909 | ) | (44,419 | ) | |||||||||||||||||
| Total earning assets | 3,312,323 | 3,269,172 | 3,243,086 | 3,154,058 | 3,113,449 | 43,151 | 198,874 | |||||||||||||||||||
| Total nonearning assets | 211,908 | 207,474 | 212,256 | 189,965 | 202,975 | 4,434 | 8,933 | |||||||||||||||||||
| Total assets | 3,524,231 | 3,476,646 | 3,455,342 | 3,344,023 | 3,316,424 | 47,585 | 207,807 | |||||||||||||||||||
| Interest-bearing transaction accounts | 531,359 | 538,926 | 559,113 | 486,514 | 522,147 | (7,567 | ) | 9,212 | ||||||||||||||||||
| Savings & money market deposits | 1,052,106 | 1,036,498 | 1,066,783 | 1,042,941 | 1,035,706 | 15,608 | 16,400 | |||||||||||||||||||
| Time deposits less than $250,000 | 351,883 | 314,950 | 283,276 | 295,304 | 309,725 | 36,933 | 42,158 | |||||||||||||||||||
| Time deposits $250,000 or greater | 64,869 | 53,786 | 50,784 | 57,511 | 57,375 | 11,083 | 7,494 | |||||||||||||||||||
| Brokered and wholesale time deposits | 24,471 | 48,039 | 56,298 | 70,004 | 82,840 | (23,568 | ) | (58,369 | ) | |||||||||||||||||
| Other borrowings | 61,146 | 33,635 | 26,106 | 15,507 | 11,667 | 27,511 | 49,479 | |||||||||||||||||||
| Total interest-bearing liabilities | 2,085,834 | 2,025,834 | 2,042,360 | 1,967,781 | 2,019,460 | 60,000 | 66,374 | |||||||||||||||||||
| Noninterest-bearing deposits | 848,331 | 862,315 | 826,534 | 814,040 | 739,025 | (13,984 | ) | 109,306 | ||||||||||||||||||
| Other liabilities | 43,228 | 46,053 | 51,746 | 32,704 | 32,680 | (2,825 | ) | 10,548 | ||||||||||||||||||
| Shareholders’ equity | 546,838 | 542,444 | 534,702 | 529,498 | 525,259 | 4,394 | 21,579 | |||||||||||||||||||
| Total liabilities and shareholders' equity | 3,524,231 | 3,476,646 | 3,455,342 | 3,344,023 | 3,316,424 | 47,585 | 207,807 | |||||||||||||||||||
| Interest Margins (2) | ||||||||||||||||||||||||||
| Interest-bearing deposits in other financial institutions | .33 | % | .38 | % | .28 | % | .27 | % | .29 | % | (.05 | )% | .04 | % | ||||||||||||
| Investment securities, tax-equivalent basis (3) | 2.07 | 2.05 | 1.87 | 1.86 | 1.90 | .02 | .17 | |||||||||||||||||||
| Loans, excluding purchased credit impaired, tax-equivalent basis (4) | 4.68 | 4.67 | 4.71 | 4.91 | 4.84 | .01 | (.16 | ) | ||||||||||||||||||
| Purchased credit impaired loans | 41.54 | 27.78 | 38.16 | 26.49 | 18.68 | 13.76 | 22.86 | |||||||||||||||||||
| Total earning assets | 5.37 | % | 4.79 | % | 5.23 | % | 4.98 | % | 4.58 | % | .58 | % | .79 | % | ||||||||||||
| Interest-bearing transaction accounts | .12 | .12 | .13 | .13 | .14 | — | (.02 | ) | ||||||||||||||||||
| Savings & money market deposits | .53 | .50 | .48 | .47 | .46 | .03 | .07 | |||||||||||||||||||
| Time deposits less than $250,000 | .64 | .51 | .39 | .38 | .36 | .13 | .28 | |||||||||||||||||||
| Time deposits $250,000 or greater | .71 | .53 | .33 | .36 | .36 | .18 | .35 | |||||||||||||||||||
| Brokered and wholesale time deposits | 1.07 | 1.07 | 1.03 | .97 | .97 | — | .10 | |||||||||||||||||||
| Other borrowings | .52 | .65 | .76 | 1.69 | 2.23 | (.13 | ) | (1.71 | ) | |||||||||||||||||
| Total interest-bearing liabilities | .46 | % | .42 | % | .39 | % | .40 | % | .39 | % | .04 | % | .07 | % | ||||||||||||
| Net interest spread | 4.91 | % | 4.37 | % | 4.84 | % | 4.58 | % | 4.19 | % | .54 | % | .72 | % | ||||||||||||
| Net interest margin | 5.08 | % | 4.53 | % | 4.99 | % | 4.73 | % | 4.33 | % | .55 | % | .75 | % | ||||||||||||
| Net interest margin excluding accretion income | 3.53 | % | 3.48 | % | 3.40 | % | 3.52 | % | 3.45 | % | .05 | % | .08 | % | ||||||||||||
(1) Includes average nonaccrual loans of $10.0 million for 2Q16, $8.9 million for 1Q16, $6.5 million for 4Q15, $5.9 million for 3Q15, and $4.9 million for 2Q15.
(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 2Q16, $2,000 for 1Q16, $3,000 for 4Q15, $4,000 for 3Q15, and $5,000 for 2Q15.
(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 $113,000 for 2Q16, $165,000 for 1Q16, $134,000 for 4Q15, $179,000 for 3Q15, and $104,000 for 2Q15.
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| State Bank Financial Corporation | |||||||||||||||||||
| 2Q16 Financial Supplement: Table 8 | |||||||||||||||||||
| Reconciliation of Non-GAAP Measures (1) | |||||||||||||||||||
| Quarterly (Unaudited) | |||||||||||||||||||
| 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2Q15 | |||||||||||||||
| Book value per common share reconciliation | |||||||||||||||||||
| Tangible book value per common share | $ | 13.77 | $ | 13.49 | $ | 13.22 | $ | 13.78 | $ | 13.51 | |||||||||
| Effect of goodwill and other intangibles | 1.23 | 1.24 | 1.25 | 1.10 | 1.11 | ||||||||||||||
| Book value per common share (GAAP) | $ | 15.00 | $ | 14.73 | $ | 14.47 | $ | 14.88 | $ | 14.62 | |||||||||
| Average equity to average assets reconciliation | |||||||||||||||||||
| Average tangible equity to average tangible assets | 14.41 | % | 14.47 | % | 14.40 | % | 14.82 | % | 14.81 | % | |||||||||
| Effect of average goodwill and other intangibles | 1.11 | 1.13 | 1.07 | 1.01 | 1.03 | ||||||||||||||
| Average equity to average assets (GAAP) | 15.52 | % | 15.60 | % | 15.47 | % | 15.83 | % | 15.84 | % | |||||||||
(1) Management evaluates the capital position 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: tangible book value per common share 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 capital position, (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. 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