Investor Relations Contact: Jeremy Lucas 404.239.8626 / jeremy.lucas@statebt.com
State Bank Financial Corporation Reports Third Quarter 2016 Financial Results
| ▪ | Third quarter 2016 net income of $12.4 million, or $.34 per diluted share |
| ▪ | Return on average assets of 1.39% |
| ▪ | Positive trend in loan interest income continues |
| ▪ | Net interest margin excluding accretion expands to 3.57% |
ATLANTA, GA, October 27, 2016 - State Bank Financial Corporation (NASDAQ: STBZ) today announced unaudited financial results for the quarter ended September 30, 2016. Net income for the third quarter of 2016 was $12.4 million, compared to $14.0 million in the second quarter of 2016 and $9.1 million in the third quarter of 2015. Fully diluted earnings per share were $.34 in the third quarter of 2016 compared to $.38 in the second quarter of 2016 and $.25 in the third quarter of 2015. Interest income on loans improved to $26.6 million in the third quarter, a $1.2 million increase from the second quarter of 2016 and a $2.4 million increase from the third quarter of 2015. The increase in interest income on loans as well as lower noninterest expense helped offset a decline in accretion income in the third quarter of 2016.
Joe Evans, Chairman and CEO of State Bank Financial, commented, “This was another solid quarter. I am very pleased with the way we continue to balance the delivery of current operating results with the build-out of markets and lines of business for the future.”
Operating Highlights
Net interest income of $38.1 million in the third quarter of 2016 decreased from $41.7 million in the second quarter of 2016 but increased from $37.4 million in the third quarter of 2015. Accretion income on loans was $9.3 million in the third quarter of 2016, down from $14.0 million in the second quarter of 2016 and $11.2 million in the third 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. There were no loan pool closings during the third quarters of 2016 or 2015. As of September 30, 2016, approximately $72 million of accretable discount remains to be recognized as loan accretion income.
Noninterest income was $9.8 million in the third quarter of 2016, compared to $10.2 million in the second quarter of 2016 and $8.9 million in the third quarter of 2015. Excluding gain on sale of securities, noninterest income declined $103 thousand, or 1.0%, from the previous quarter and increased $854 thousand, or 9.6%, from the third quarter of 2015. In the third quarter of 2016, income from mortgage banking and SBA lending totaled $3.2 million and $1.6 million, respectively. Payroll fee income of $1.1 million increased versus the prior quarter and prior year periods.
1
Total noninterest expense for the third quarter of 2016 was $28.5 million, a $2.2 million decrease from
the second quarter of 2016, and a $3.9 million decrease from the third quarter of 2015. The decline was due primarily to lower salary and employee benefit costs, which were down $863 thousand from the previous quarter. Merger-related expenses totaled $135 thousand in the third quarter of 2016 compared to $319 thousand in the second quarter of 2016.
Financial Condition
Total assets at September 30, 2016 were $3.62 billion, up from $3.59 billion at June 30, 2016. Total loans were $2.3 billion at September 30, 2016, up $1.3 million from the second quarter of 2016. Period-end organic and purchased non-credit impaired loans increased to $2.2 billion at September 30, 2016, a net increase of $8.9 million from the second quarter of 2016. Purchased credit impaired loans decreased to $126.8 million at the end of the third quarter of 2016, a $7.7 million linked-quarter decline.
Tom Wiley, Vice Chairman and President, commented, “We originated over $390 million in new loans in the third quarter, but this was offset by a record level of paydowns as a number of our real estate clients profitably cashed out on their projects. Our loan pipeline remains strong as does our expectation for continued strong longer-term growth without compromising our high credit standards.”
The organic loan portfolio continued to perform well in the third quarter of 2016 as past due organic
loans represented .09% of total organic loans. The allowance as a percent of loans declined three basis points to 1.07% at the end of the third quarter of 2016 and covers organic nonperforming assets by more than three times.
Total deposits at September 30, 2016 were $2.96 billion, up from $2.89 billion at the end of the second quarter of 2016. Period-end transaction accounts, comprised of noninterest-bearing demand deposits and interest-bearing transaction accounts, increased $76.3 million from the second quarter of 2016. Noninterest-bearing demand deposits represented 30.1% of total deposits as of September 30, 2016. Average noninterest-bearing demand deposits decreased $25.3 million from the second quarter of 2016.
Tangible book value per share was $13.99 at the end of the third quarter of 2016. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 14.64% and a Tier I risk-based capital ratio of 16.68%.
Recent Events
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 September 30, 2016, The National Bank of Georgia had assets of approximately $415 million, loans of approximately $356 million, deposits of approximately $323 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 October 26, 2016, State Bank Financial and NBG Bancorp executed an amendment to the merger agreement extending the date that the merger may be terminated from December 31, 2016 to March 31, 2017.
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
2
price of approximately $11 million. At September 30, 2016, S Bank had assets of approximately $110 million, loans of approximately $81 million, and deposits of approximately $92 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. On October 26, 2016, State Bank Financial and S Bankshares executed an amendment to the merger agreement extending the date that the merger may be terminated from December 31, 2016 to February 28, 2017.
As noted in the previous paragraphs, State Bank Financial requested and was granted an extension of both merger agreements into the first quarter of 2017 as we determined additional time may be required to obtain regulatory approvals and to satisfy closing conditions necessary to complete the respective mergers. No other changes to the merger agreements were made. While we anticipate receiving regulatory approvals for both transactions by the end of 2016, these extensions will provide additional time for the parties to close the mergers if such regulatory approvals are not obtained until the first quarter of 2017. However, no assurance can be given as to when or if the necessary regulatory approvals will be received.
Detailed Results
Supplemental tables displaying financial results for the third quarter of 2016, the previous four quarters and year-to-date 2016 are included with this press release.
Non-GAAP Financial Measure
This press release contains a financial measure determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). For more information on this non-GAAP financial measure, please refer to 3Q16 Financial Supplement: Table 8, Reconciliation of Non-GAAP Measure.
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: 1.800.406.7408
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 September 30, 2016, is an Atlanta-based bank holding company for State Bank and Trust Company. State Bank operates 25 full-service banking offices in Metro Atlanta, Middle Georgia and Augusta, Georgia, and seven mortgage origination offices.
3
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,” “anticipate,” “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 future accretion income on loans, statements regarding our ability to continue to balance the delivery of operating results with the build-out of markets and lines of businesses, statements regarding the strength of our loan pipeline and our expectations for continued strong longer-term loan growth that does not compromise our high credit standards, statements regarding our proposed mergers with NBG Bancorp, Inc. and S Bankshares, Inc., including our belief that we will receive regulatory approvals for both transactions by the end of 2016, 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 proxy statement of NBG Bancorp, Inc. and a prospectus of State Bank Financial. 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 REGISTRATION STATEMENT AND PROXY STATEMENT/PROSPECTUS BECAUSE THOSE DOCUMENTS CONTAIN OR WILL CONTAIN
4
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 has filed a registration statement on Form S-4 (Registration Statement No. 333-213807) that includes a proxy statement of S Bankshares, Inc. and a prospectus of State Bank Financial. The registration statement and the proxy statement/prospectus filed with the SEC related to the proposed transaction contains 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, 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 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 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 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.
5
| State Bank Financial Corporation | ||||||||||||||||||||||||||||
| 3Q16 Financial Supplement: Table 1 | ||||||||||||||||||||||||||||
| Condensed Consolidated Financial Summary Results | ||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||
| 3Q16 change vs | ||||||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2Q16 | 3Q15 | |||||||||||||||||||||
| Income Statement Highlights | ||||||||||||||||||||||||||||
| Interest income on loans | $ | 26,580 | $ | 25,406 | $ | 24,342 | $ | 24,250 | $ | 24,218 | $ | 1,174 | $ | 2,362 | ||||||||||||||
| Accretion income on loans | 9,335 | 13,961 | 9,743 | 14,240 | 11,156 | (4,626 | ) | (1,821 | ) | |||||||||||||||||||
| Interest income on invested funds | 4,714 | 4,726 | 4,673 | 4,139 | 4,050 | (12 | ) | 664 | ||||||||||||||||||||
| Total interest income | 40,629 | 44,093 | 38,758 | 42,629 | 39,424 | (3,464 | ) | 1,205 | ||||||||||||||||||||
| Interest expense | 2,504 | 2,371 | 2,113 | 1,994 | 1,977 | 133 | 527 | |||||||||||||||||||||
| Net interest income | 38,125 | 41,722 | 36,645 | 40,635 | 37,447 | (3,597 | ) | 678 | ||||||||||||||||||||
| Provision for loan and lease losses (organic & PNCI loans) | 7 | 1,600 | 1,689 | 1,003 | 608 | (1,593 | ) | (601 | ) | |||||||||||||||||||
| Provision for loan and lease losses (purchased credit impaired loans) | 81 | (1,594 | ) | (1,823 | ) | (509 | ) | (873 | ) | 1,675 | 954 | |||||||||||||||||
| Provision for loan and lease losses | 88 | 6 | (134 | ) | 494 | (265 | ) | 82 | 353 | |||||||||||||||||||
| Total noninterest income | 9,769 | 10,230 | 9,391 | 8,136 | 8,894 | (461 | ) | 875 | ||||||||||||||||||||
| Total noninterest expense | 28,480 | 30,674 | 28,898 | 29,562 | 32,416 | (2,194 | ) | (3,936 | ) | |||||||||||||||||||
| Income before income taxes | 19,326 | 21,272 | 17,272 | 18,715 | 14,190 | (1,946 | ) | 5,136 | ||||||||||||||||||||
| Income tax expense | 6,885 | 7,287 | 6,434 | 6,594 | 5,071 | (402 | ) | 1,814 | ||||||||||||||||||||
| Net income | $ | 12,441 | $ | 13,985 | $ | 10,838 | $ | 12,121 | $ | 9,119 | $ | (1,544 | ) | $ | 3,322 | |||||||||||||
| Common Share Data | ||||||||||||||||||||||||||||
| Basic earnings per share | $ | .34 | $ | .38 | $ | .29 | $ | .33 | $ | .26 | $ | (.04 | ) | $ | .08 | |||||||||||||
| Diluted earnings per share | .34 | .38 | .29 | .33 | .25 | (.04 | ) | .09 | ||||||||||||||||||||
| Cash dividends declared per share | .14 | .14 | .14 | .14 | .07 | — | .07 | |||||||||||||||||||||
| Book value per share | 15.21 | 15.00 | 14.73 | 14.47 | 14.88 | .21 | .33 | |||||||||||||||||||||
| Tangible book value per share (1) | 13.99 | 13.77 | 13.49 | 13.22 | 13.78 | .22 | .21 | |||||||||||||||||||||
| Market price per share (quarter end) | 22.82 | 20.35 | 19.76 | 21.03 | 20.68 | 2.47 | 2.14 | |||||||||||||||||||||
| Common Shares Outstanding | ||||||||||||||||||||||||||||
| Common stock | 36,894,553 | 36,894,641 | 37,052,008 | 37,077,848 | 35,753,855 | (88 | ) | 1,140,698 | ||||||||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||||||
| Basic | 35,863,183 | 35,822,654 | 36,092,269 | 35,208,607 | 34,687,354 | 40,529 | 1,175,829 | |||||||||||||||||||||
| Diluted | 35,965,948 | 35,923,691 | 36,187,662 | 36,140,474 | 36,003,068 | 42,257 | (37,120 | ) | ||||||||||||||||||||
| Average Balance Sheet Highlights | ||||||||||||||||||||||||||||
| Loans | $ | 2,406,629 | $ | 2,326,666 | $ | 2,250,518 | $ | 2,203,993 | $ | 2,136,746 | $ | 79,963 | $ | 269,883 | ||||||||||||||
| Assets | 3,564,470 | 3,524,231 | 3,476,646 | 3,455,342 | 3,344,023 | 40,239 | 220,447 | |||||||||||||||||||||
| Deposits | 2,866,822 | 2,873,019 | 2,854,514 | 2,842,788 | 2,766,314 | (6,197 | ) | 100,508 | ||||||||||||||||||||
| Equity | 557,365 | 546,838 | 542,444 | 534,702 | 529,498 | 10,527 | 27,867 | |||||||||||||||||||||
| Tangible common equity | 512,265 | 501,221 | 496,287 | 491,346 | 489,757 | 11,044 | 22,508 | |||||||||||||||||||||
6
| State Bank Financial Corporation | |||||||||||||||||||||
| 3Q16 Financial Supplement: Table 1 (continued) | |||||||||||||||||||||
| Condensed Consolidated Financial Summary Results | |||||||||||||||||||||
| Quarterly (Unaudited) | |||||||||||||||||||||
| 3Q16 change vs | |||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2Q16 | 3Q15 | ||||||||||||||
| Key Metrics (2) | |||||||||||||||||||||
| Return on average assets | 1.39 | % | 1.60 | % | 1.25 | % | 1.39 | % | 1.08 | % | (.21 | )% | .31 | % | |||||||
| Return on average equity | 8.88 | 10.29 | 8.04 | 8.99 | 6.83 | (1.41 | ) | 2.05 | |||||||||||||
| Yield on earning assets | 4.84 | 5.37 | 4.79 | 5.23 | 4.98 | (.53 | ) | (.14 | ) | ||||||||||||
| Cost of funds | .34 | .33 | .29 | .28 | .28 | .01 | .06 | ||||||||||||||
| Rate on interest-bearing liabilities | .47 | .46 | .42 | .39 | .40 | .01 | .07 | ||||||||||||||
| Net interest margin | 4.54 | 5.08 | 4.53 | 4.99 | 4.73 | (.54 | ) | (.19 | ) | ||||||||||||
| Net interest margin excluding accretion income (3) | 3.57 | 3.53 | 3.48 | 3.40 | 3.52 | .04 | .05 | ||||||||||||||
| Leverage ratio (4) | 14.64 | 14.56 | 14.59 | 14.48 | 14.93 | .08 | (.29 | ) | |||||||||||||
| Tier I risk-based capital ratio (4) | 16.68 | 16.52 | 17.09 | 17.71 | 18.20 | .16 | (1.52 | ) | |||||||||||||
| Total risk-based capital ratio (4) | 17.56 | 17.42 | 18.13 | 18.75 | 19.28 | .14 | (1.72 | ) | |||||||||||||
| Efficiency ratio (5) | 59.46 | 59.04 | 62.77 | 60.61 | 69.95 | .42 | (10.49 | ) | |||||||||||||
| Average loans to average deposits | 83.95 | 80.98 | 78.84 | 77.53 | 77.24 | 2.97 | 6.71 | ||||||||||||||
| Noninterest-bearing deposits to total deposits | 30.09 | 28.75 | 30.68 | 28.87 | 29.45 | 1.34 | .64 | ||||||||||||||
(1) Denotes a non-GAAP financial measure. See Reconciliation of Non-GAAP Measure (Table 8) for further information.
(2) Income statement ratios and yield/rate information are annualized for the applicable period.
(3) Excludes accretion income on loans and average purchased credit impaired loans.
(4) Current period capital ratios are estimated as of the date of this earnings release.
(5) Noninterest expenses divided by net interest income plus noninterest income.
7
| State Bank Financial Corporation | ||||||||||||||||||||||||||||
| 3Q16 Financial Supplement: Table 2 | ||||||||||||||||||||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||
| 3Q16 change vs | ||||||||||||||||||||||||||||
| (Dollars in thousands) | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2Q16 | 3Q15 | |||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||
| Cash and amounts due from depository institutions | $ | 10,648 | $ | 11,964 | $ | 14,398 | $ | 12,175 | $ | 15,734 | $ | (1,316 | ) | $ | (5,086 | ) | ||||||||||||
| Interest-bearing deposits in other financial institutions | 103,122 | 70,603 | 102,355 | 163,187 | 153,937 | 32,519 | (50,815 | ) | ||||||||||||||||||||
| Cash and cash equivalents | 113,770 | 82,567 | 116,753 | 175,362 | 169,671 | 31,203 | (55,901 | ) | ||||||||||||||||||||
| Investment securities available-for-sale | 822,655 | 824,980 | 849,576 | 887,705 | 831,548 | (2,325 | ) | (8,893 | ) | |||||||||||||||||||
| Investment securities held-to-maturity | 67,071 | 63,080 | 60,591 | — | — | 3,991 | 67,071 | |||||||||||||||||||||
| Loans | 2,346,346 | 2,345,096 | 2,258,533 | 2,160,217 | 2,139,691 | 1,250 | 206,655 | |||||||||||||||||||||
| Allowance for loan and lease losses | (27,177 | ) | (27,599 | ) | (30,345 | ) | (29,075 | ) | (28,930 | ) | 422 | 1,753 | ||||||||||||||||
| Loans, net | 2,319,169 | 2,317,497 | 2,228,188 | 2,131,142 | 2,110,761 | 1,672 | 208,408 | |||||||||||||||||||||
| Loans held-for-sale | 63,852 | 71,302 | 55,219 | 54,933 | 59,563 | (7,450 | ) | 4,289 | ||||||||||||||||||||
| Other real estate owned | 10,609 | 11,578 | 11,590 | 10,530 | 11,363 | (969 | ) | (754 | ) | |||||||||||||||||||
| Premises and equipment, net | 42,009 | 42,153 | 42,802 | 42,980 | 43,982 | (144 | ) | (1,973 | ) | |||||||||||||||||||
| Goodwill | 36,357 | 36,357 | 36,357 | 36,357 | 31,049 | — | 5,308 | |||||||||||||||||||||
| Other intangibles, net | 8,515 | 9,029 | 9,556 | 10,101 | 8,486 | (514 | ) | 29 | ||||||||||||||||||||
| SBA servicing rights | 3,275 | 3,165 | 2,882 | 2,626 | 2,463 | 110 | 812 | |||||||||||||||||||||
| Bank-owned life insurance | 60,282 | 59,749 | 59,281 | 58,819 | 58,347 | 533 | 1,935 | |||||||||||||||||||||
| Other assets | 68,820 | 65,046 | 60,176 | 59,512 | 61,440 | 3,774 | 7,380 | |||||||||||||||||||||
| Total assets | $ | 3,616,384 | $ | 3,586,503 | $ | 3,532,971 | $ | 3,470,067 | $ | 3,388,673 | $ | 29,881 | $ | 227,711 | ||||||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||
| Noninterest-bearing deposits | $ | 890,588 | $ | 829,673 | $ | 891,511 | $ | 826,216 | $ | 823,146 | $ | 60,915 | $ | 67,442 | ||||||||||||||
| Interest-bearing deposits | 2,068,704 | 2,055,817 | 2,014,087 | 2,035,746 | 1,972,042 | 12,887 | 96,662 | |||||||||||||||||||||
| Total deposits | 2,959,292 | 2,885,490 | 2,905,598 | 2,861,962 | 2,795,188 | 73,802 | 164,104 | |||||||||||||||||||||
| Securities sold under agreements to repurchase | 20,124 | 33,923 | 33,503 | 32,179 | 4,872 | (13,799 | ) | 15,252 | ||||||||||||||||||||
| FHLB borrowings | 20,000 | 62,000 | — | — | — | (42,000 | ) | 20,000 | ||||||||||||||||||||
| Notes payable | 398 | 398 | 1,808 | 1,812 | 2,761 | — | (2,363 | ) | ||||||||||||||||||||
| Other liabilities | 55,436 | 51,336 | 46,207 | 37,624 | 53,691 | 4,100 | 1,745 | |||||||||||||||||||||
| Total liabilities | 3,055,250 | 3,033,147 | 2,987,116 | 2,933,577 | 2,856,512 | 22,103 | 198,738 | |||||||||||||||||||||
| Total shareholders’ equity | 561,134 | 553,356 | 545,855 | 536,490 | 532,161 | 7,778 | 28,973 | |||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,616,384 | $ | 3,586,503 | $ | 3,532,971 | $ | 3,470,067 | $ | 3,388,673 | $ | 29,881 | $ | 227,711 | ||||||||||||||
| Capital Ratios (1) | ||||||||||||||||||||||||||||
| Average equity to average assets | 15.64 | % | 15.52 | % | 15.60 | % | 15.47 | % | 15.83 | % | .12 | % | (.19 | )% | ||||||||||||||
| Leverage ratio | 14.64 | 14.56 | 14.59 | 14.48 | 14.93 | .08 | (.29 | ) | ||||||||||||||||||||
| CET1 risk-based capital ratio | 16.68 | 16.52 | 17.09 | 17.71 | 18.20 | .16 | (1.52 | ) | ||||||||||||||||||||
| Tier I risk-based capital ratio | 16.68 | 16.52 | 17.09 | 17.71 | 18.20 | .16 | (1.52 | ) | ||||||||||||||||||||
| Total risk-based capital ratio | 17.56 | 17.42 | 18.13 | 18.75 | 19.28 | .14 | (1.72 | ) | ||||||||||||||||||||
(1) Current period capital ratios are estimated as of the date of this earning release.
8
| State Bank Financial Corporation | ||||||||||||||||||||||||||||
| 3Q16 Financial Supplement: Table 3 | ||||||||||||||||||||||||||||
| Condensed Consolidated Income Statements | ||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||
| 3Q16 change vs | ||||||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2Q16 | 3Q15 | |||||||||||||||||||||
| Net Interest Income: | ||||||||||||||||||||||||||||
| Interest income on loans | $ | 26,580 | $ | 25,406 | $ | 24,342 | $ | 24,250 | $ | 24,218 | $ | 1,174 | $ | 2,362 | ||||||||||||||
| Accretion income on loans | 9,335 | 13,961 | 9,743 | 14,240 | 11,156 | (4,626 | ) | (1,821 | ) | |||||||||||||||||||
| Interest income on invested funds | 4,714 | 4,726 | 4,673 | 4,139 | 4,050 | (12 | ) | 664 | ||||||||||||||||||||
| Interest expense | 2,504 | 2,371 | 2,113 | 1,994 | 1,977 | 133 | 527 | |||||||||||||||||||||
| Net interest income | 38,125 | 41,722 | 36,645 | 40,635 | 37,447 | (3,597 | ) | 678 | ||||||||||||||||||||
| Provision for loan and lease losses (organic & PNCI loans) | 7 | 1,600 | 1,689 | 1,003 | 608 | (1,593 | ) | (601 | ) | |||||||||||||||||||
| Provision for loan and lease losses (purchased credit impaired loans) | 81 | (1,594 | ) | (1,823 | ) | (509 | ) | (873 | ) | 1,675 | 954 | |||||||||||||||||
| Provision for loan and lease losses | 88 | 6 | (134 | ) | 494 | (265 | ) | 82 | 353 | |||||||||||||||||||
| Net interest income after provision for loan and lease losses | 38,037 | 41,716 | 36,779 | 40,141 | 37,712 | (3,679 | ) | 325 | ||||||||||||||||||||
| Noninterest Income: | ||||||||||||||||||||||||||||
| Service charges on deposits | 1,383 | 1,352 | 1,386 | 1,495 | 1,491 | 31 | (108 | ) | ||||||||||||||||||||
| Mortgage banking income | 3,216 | 3,551 | 3,041 | 2,011 | 3,079 | (335 | ) | 137 | ||||||||||||||||||||
| Payroll fee income | 1,128 | 1,111 | 1,327 | 1,165 | 1,004 | 17 | 124 | |||||||||||||||||||||
| SBA income | 1,553 | 1,685 | 1,502 | 1,316 | 1,720 | (132 | ) | (167 | ) | |||||||||||||||||||
| ATM income | 759 | 769 | 745 | 741 | 742 | (10 | ) | 17 | ||||||||||||||||||||
| Bank-owned life insurance income | 533 | 468 | 462 | 472 | 537 | 65 | (4 | ) | ||||||||||||||||||||
| Gain on sale of investment securities | 38 | 396 | 13 | 16 | 17 | (358 | ) | 21 | ||||||||||||||||||||
| Other | 1,159 | 898 | 915 | 920 | 304 | 261 | 855 | |||||||||||||||||||||
| Total noninterest income | 9,769 | 10,230 | 9,391 | 8,136 | 8,894 | (461 | ) | 875 | ||||||||||||||||||||
| Noninterest Expense: | ||||||||||||||||||||||||||||
| Salaries and employee benefits | 19,799 | 20,662 | 18,760 | 19,914 | 23,293 | (863 | ) | (3,494 | ) | |||||||||||||||||||
| Occupancy and equipment | 2,984 | 3,015 | 3,101 | 2,995 | 3,113 | (31 | ) | (129 | ) | |||||||||||||||||||
| Data processing | 2,097 | 2,211 | 2,075 | 2,378 | 2,097 | (114 | ) | — | ||||||||||||||||||||
| Legal and professional fees | 1,064 | 976 | 953 | 1,091 | 1,089 | 88 | (25 | ) | ||||||||||||||||||||
| Merger-related expenses | 135 | 319 | — | — | 717 | (184 | ) | (582 | ) | |||||||||||||||||||
| Marketing | 665 | 619 | 502 | 792 | 491 | 46 | 174 | |||||||||||||||||||||
| Federal deposit insurance premiums and other regulatory fees | 441 | 553 | 562 | 518 | 621 | (112 | ) | (180 | ) | |||||||||||||||||||
| Loan collection costs and OREO activity | (841 | ) | (96 | ) | 485 | (690 | ) | (1,198 | ) | (745 | ) | 357 | ||||||||||||||||
| Amortization of intangibles | 513 | 528 | 545 | 509 | 436 | (15 | ) | 77 | ||||||||||||||||||||
| Other | 1,623 | 1,887 | 1,915 | 2,055 | 1,757 | (264 | ) | (134 | ) | |||||||||||||||||||
| Total noninterest expense | 28,480 | 30,674 | 28,898 | 29,562 | 32,416 | (2,194 | ) | (3,936 | ) | |||||||||||||||||||
| Income Before Income Taxes | 19,326 | 21,272 | 17,272 | 18,715 | 14,190 | (1,946 | ) | 5,136 | ||||||||||||||||||||
| Income tax expense | 6,885 | 7,287 | 6,434 | 6,594 | 5,071 | (402 | ) | 1,814 | ||||||||||||||||||||
| Net Income | $ | 12,441 | $ | 13,985 | $ | 10,838 | $ | 12,121 | $ | 9,119 | $ | (1,544 | ) | $ | 3,322 | |||||||||||||
| Net income allocated to participating securities | $ | 348 | $ | 408 | $ | 285 | $ | 349 | $ | 272 | $ | (60 | ) | $ | 76 | |||||||||||||
| Net income allocated to common shareholders | 12,093 | 13,577 | 10,553 | 11,772 | 8,847 | (1,484 | ) | 3,246 | ||||||||||||||||||||
| Earnings Per Share | ||||||||||||||||||||||||||||
| Basic | $ | .34 | $ | .38 | $ | .29 | $ | .33 | $ | .26 | $ | (.04 | ) | $ | .08 | |||||||||||||
| Diluted | .34 | .38 | .29 | .33 | .25 | (.04 | ) | .09 | ||||||||||||||||||||
| Weighted Average Shares Outstanding | ||||||||||||||||||||||||||||
| Basic | 35,863,183 | 35,822,654 | 36,092,269 | 35,208,607 | 34,687,354 | 40,529 | 1,175,829 | |||||||||||||||||||||
| Diluted | 35,965,948 | 35,923,691 | 36,187,662 | 36,140,474 | 36,003,068 | 42,257 | (37,120 | ) | ||||||||||||||||||||
9
| State Bank Financial Corporation | ||||||||||||
| 3Q16 Financial Supplement: Table 4 | ||||||||||||
| Condensed Consolidated Income Statements | ||||||||||||
| Year to Date (Unaudited) | ||||||||||||
| Nine Months Ended September 30 | Change | |||||||||||
| (Dollars in thousands, except per share amounts) | 2016 | 2015 | ||||||||||
| Net Interest Income: | ||||||||||||
| Interest income on loans | $ | 76,328 | $ | 68,688 | $ | 7,640 | ||||||
| Accretion income on loans | 33,039 | 35,590 | (2,551 | ) | ||||||||
| Interest income on invested funds | 14,113 | 11,684 | 2,429 | |||||||||
| Interest expense | 6,988 | 5,928 | 1,060 | |||||||||
| Net interest income | 116,492 | 110,034 | 6,458 | |||||||||
| Provision for loan and lease losses (organic & PNCI loans) | 3,296 | 1,948 | 1,348 | |||||||||
| Provision for loan and lease losses (purchased credit impaired loans) | (3,336 | ) | 1,044 | (4,380 | ) | |||||||
| Provision for loan and lease losses | (40 | ) | 2,992 | (3,032 | ) | |||||||
| Net interest income after provision for loan and lease losses | 116,532 | 107,042 | 9,490 | |||||||||
| Noninterest Income: | ||||||||||||
| Amortization of FDIC receivable for loss share agreements | — | (16,488 | ) | 16,488 | ||||||||
| Service charges on deposits | 4,121 | 4,481 | (360 | ) | ||||||||
| Mortgage banking income | 9,808 | 9,239 | 569 | |||||||||
| Payroll fee income | 3,566 | 3,118 | 448 | |||||||||
| SBA income | 4,740 | 4,223 | 517 | |||||||||
| ATM income | 2,273 | 2,240 | 33 | |||||||||
| Bank-owned life insurance income | 1,463 | 1,454 | 9 | |||||||||
| Gain on sale of investment securities | 447 | 338 | 109 | |||||||||
| Other | 2,972 | 3,370 | (398 | ) | ||||||||
| Total noninterest income | 29,390 | 11,975 | 17,415 | |||||||||
| Noninterest Expense: | ||||||||||||
| Salaries and employee benefits | 59,221 | 63,381 | (4,160 | ) | ||||||||
| Occupancy and equipment | 9,100 | 9,437 | (337 | ) | ||||||||
| Data processing | 6,383 | 6,812 | (429 | ) | ||||||||
| Legal and professional fees | 2,993 | 3,857 | (864 | ) | ||||||||
| Merger-related expenses | 454 | 1,730 | (1,276 | ) | ||||||||
| Marketing | 1,786 | 1,526 | 260 | |||||||||
| Federal deposit insurance premiums and other regulatory fees | 1,556 | 1,582 | (26 | ) | ||||||||
| Loan collection costs and OREO activity | (452 | ) | (907 | ) | 455 | |||||||
| Amortization of intangibles | 1,586 | 1,295 | 291 | |||||||||
| Other | 5,425 | 5,147 | 278 | |||||||||
| Total noninterest expense | 88,052 | 93,860 | (5,808 | ) | ||||||||
| Income Before Income Taxes | 57,870 | 25,157 | 32,713 | |||||||||
| Income tax expense | 20,606 | 8,855 | 11,751 | |||||||||
| Net Income | $ | 37,264 | $ | 16,302 | $ | 20,962 | ||||||
| Net income allocated to participating securities | $ | 1,021 | $ | 452 | $ | 569 | ||||||
| Net income allocated to common shareholders | 36,243 | 15,850 | 20,393 | |||||||||
| Earnings Per Share | ||||||||||||
| Basic | $ | 1.01 | $ | .46 | $ | .55 | ||||||
| Diluted | 1.01 | .45 | .56 | |||||||||
| Weighted Average Shares Outstanding | ||||||||||||
| Basic | 35,940,402 | 34,315,916 | 1,624,486 | |||||||||
| Diluted | 36,040,655 | 35,615,974 | 424,681 | |||||||||
10
| State Bank Financial Corporation | ||||||||||||||||||||||||||||
| 3Q16 Financial Supplement: Table 5 | ||||||||||||||||||||||||||||
| Condensed Consolidated Composition of Loans and Deposits at Period Ends | ||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||
| 3Q16 change vs | ||||||||||||||||||||||||||||
| (Dollars in thousands) | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2Q16 | 3Q15 | |||||||||||||||||||||
| Composition of Loans | ||||||||||||||||||||||||||||
| Organic loans (1): | ||||||||||||||||||||||||||||
| Construction, land & land development | $ | 486,299 | $ | 470,672 | $ | 452,654 | $ | 482,087 | $ | 412,788 | $ | 15,627 | $ | 73,511 | ||||||||||||||
| Other commercial real estate | 744,270 | 748,949 | 719,340 | 661,062 | 705,616 | (4,679 | ) | 38,654 | ||||||||||||||||||||
| Total commercial real estate | 1,230,569 | 1,219,621 | 1,171,994 | 1,143,149 | 1,118,404 | 10,948 | 112,165 | |||||||||||||||||||||
| Residential real estate | 139,926 | 139,832 | 140,493 | 140,613 | 127,823 | 94 | 12,103 | |||||||||||||||||||||
| Owner-occupied real estate | 239,726 | 238,059 | 222,347 | 219,636 | 212,171 | 1,667 | 27,555 | |||||||||||||||||||||
| Commercial, financial & agricultural | 306,141 | 290,245 | 233,169 | 181,513 | 165,305 | 15,896 | 140,836 | |||||||||||||||||||||
| Leases | 74,722 | 82,977 | 93,490 | 71,539 | 54,814 | (8,255 | ) | 19,908 | ||||||||||||||||||||
| Consumer | 39,373 | 34,124 | 33,847 | 17,882 | 16,432 | 5,249 | 22,941 | |||||||||||||||||||||
| Total organic loans | 2,030,457 | 2,004,858 | 1,895,340 | 1,774,332 | 1,694,949 | 25,599 | 335,508 | |||||||||||||||||||||
| Purchased non-credit impaired loans(2): | ||||||||||||||||||||||||||||
| Construction, land & land development | 10,035 | 11,427 | 13,959 | 18,598 | 37,326 | (1,392 | ) | (27,291 | ) | |||||||||||||||||||
| Other commercial real estate | 58,261 | 64,665 | 70,444 | 74,506 | 79,878 | (6,404 | ) | (21,617 | ) | |||||||||||||||||||
| Total commercial real estate | 68,296 | 76,092 | 84,403 | 93,104 | 117,204 | (7,796 | ) | (48,908 | ) | |||||||||||||||||||
| Residential real estate | 56,468 | 60,100 | 65,948 | 69,053 | 75,987 | (3,632 | ) | (19,519 | ) | |||||||||||||||||||
| Owner-occupied real estate | 52,016 | 56,414 | 57,519 | 61,313 | 69,619 | (4,398 | ) | (17,603 | ) | |||||||||||||||||||
| Commercial, financial & agricultural | 10,447 | 11,121 | 13,315 | 14,216 | 19,529 | (674 | ) | (9,082 | ) | |||||||||||||||||||
| Consumer | 1,826 | 1,978 | 2,213 | 2,624 | 3,080 | (152 | ) | (1,254 | ) | |||||||||||||||||||
| Total purchased non-credit impaired loans | 189,053 | 205,705 | 223,398 | 240,310 | 285,419 | (16,652 | ) | (96,366 | ) | |||||||||||||||||||
| Purchased credit impaired loans (3): | ||||||||||||||||||||||||||||
| Construction, land & land development | 11,564 | 13,310 | 13,245 | 14,252 | 16,473 | (1,746 | ) | (4,909 | ) | |||||||||||||||||||
| Other commercial real estate | 38,238 | 39,218 | 40,119 | 40,742 | 42,637 | (980 | ) | (4,399 | ) | |||||||||||||||||||
| Total commercial real estate | 49,802 | 52,528 | 53,364 | 54,994 | 59,110 | (2,726 | ) | (9,308 | ) | |||||||||||||||||||
| Residential real estate | 53,953 | 56,887 | 60,579 | 64,011 | 67,218 | (2,934 | ) | (13,265 | ) | |||||||||||||||||||
| Owner-occupied real estate | 22,389 | 24,281 | 24,834 | 25,364 | 30,655 | (1,892 | ) | (8,266 | ) | |||||||||||||||||||
| Commercial, financial & agricultural | 608 | 722 | 871 | 1,050 | 2,132 | (114 | ) | (1,524 | ) | |||||||||||||||||||
| Consumer | 84 | 115 | 147 | 156 | 208 | (31 | ) | (124 | ) | |||||||||||||||||||
| Total purchased credit impaired loans | 126,836 | 134,533 | 139,795 | 145,575 | 159,323 | (7,697 | ) | (32,487 | ) | |||||||||||||||||||
| Total loans | $ | 2,346,346 | $ | 2,345,096 | $ | 2,258,533 | $ | 2,160,217 | $ | 2,139,691 | $ | 1,250 | $ | 206,655 | ||||||||||||||
| Composition of Deposits | ||||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | $ | 890,588 | $ | 829,673 | $ | 891,511 | $ | 826,216 | $ | 823,146 | $ | 60,915 | $ | 67,442 | ||||||||||||||
| Interest-bearing transaction accounts | 547,078 | 531,676 | 539,322 | 588,391 | 499,434 | 15,402 | 47,644 | |||||||||||||||||||||
| Savings and money market deposits | 1,101,458 | 1,097,098 | 1,017,930 | 1,074,190 | 1,059,770 | 4,360 | 41,688 | |||||||||||||||||||||
| Time deposits less than $250,000 | 332,873 | 345,999 | 348,304 | 279,449 | 289,815 | (13,126 | ) | 43,058 | ||||||||||||||||||||
| Time deposits $250,000 or greater | 57,556 | 63,686 | 64,494 | 41,439 | 56,750 | (6,130 | ) | 806 | ||||||||||||||||||||
| Brokered and wholesale time deposits | 29,739 | 17,358 | 44,037 | 52,277 | 66,273 | 12,381 | (36,534 | ) | ||||||||||||||||||||
| Total deposits | $ | 2,959,292 | $ | 2,885,490 | $ | 2,905,598 | $ | 2,861,962 | $ | 2,795,188 | $ | 73,802 | $ | 164,104 | ||||||||||||||
(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 | ||||||||||||||||||||||||||||
| 3Q16 Financial Supplement: Table 6 | ||||||||||||||||||||||||||||
| Condensed Consolidated Asset Quality Data | ||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||
| 3Q16 change vs | ||||||||||||||||||||||||||||
| (Dollars in thousands) | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2Q16 | 3Q15 | |||||||||||||||||||||
| Allowance for loan and lease losses on organic loans | ||||||||||||||||||||||||||||
| Beginning Balance | $ | 22,008 | $ | 22,626 | $ | 21,224 | $ | 20,176 | $ | 19,594 | $ | (618 | ) | $ | 2,414 | |||||||||||||
| Charge-offs | (311 | ) | (2,307 | ) | (240 | ) | (110 | ) | (63 | ) | 1,996 | (248 | ) | |||||||||||||||
| Recoveries | 39 | 54 | 96 | 207 | 31 | (15 | ) | 8 | ||||||||||||||||||||
| Net (charge-offs) recoveries | (272 | ) | (2,253 | ) | (144 | ) | 97 | (32 | ) | 1,981 | (240 | ) | ||||||||||||||||
| Provision for loan and lease losses | — | 1,635 | 1,546 | 951 | 614 | (1,635 | ) | (614 | ) | |||||||||||||||||||
| Ending Balance | $ | 21,736 | $ | 22,008 | $ | 22,626 | $ | 21,224 | $ | 20,176 | $ | (272 | ) | $ | 1,560 | |||||||||||||
| Allowance for loan and lease losses on purchased non-credit impaired loans | ||||||||||||||||||||||||||||
| Beginning Balance | $ | 158 | $ | 166 | $ | 53 | $ | — | $ | — | $ | (8 | ) | $ | 158 | |||||||||||||
| Charge-offs | (16 | ) | (1 | ) | (63 | ) | — | — | (15 | ) | (16 | ) | ||||||||||||||||
| Recoveries | 1 | 28 | 33 | 1 | 6 | (27 | ) | (5 | ) | |||||||||||||||||||
| Net (charge-offs) recoveries | (15 | ) | 27 | (30 | ) | 1 | 6 | (42 | ) | (21 | ) | |||||||||||||||||
| Provision for loan and lease losses | 7 | (35 | ) | 143 | 52 | (6 | ) | 42 | 13 | |||||||||||||||||||
| Ending Balance | $ | 150 | $ | 158 | $ | 166 | $ | 53 | $ | — | �� | $ | (8 | ) | $ | 150 | ||||||||||||
| Allowance for loan and lease losses on purchased credit impaired loans | ||||||||||||||||||||||||||||
| Beginning Balance | $ | 5,433 | $ | 7,553 | $ | 7,798 | $ | 8,754 | $ | 9,975 | $ | (2,120 | ) | $ | (4,542 | ) | ||||||||||||
| Charge-offs | (223 | ) | (606 | ) | (1,516 | ) | (3,467 | ) | (3,282 | ) | 383 | 3,059 | ||||||||||||||||
| Recoveries | — | 80 | 3,094 | 3,020 | 2,934 | (80 | ) | (2,934 | ) | |||||||||||||||||||
| Net (charge-offs) recoveries | (223 | ) | (526 | ) | 1,578 | (447 | ) | (348 | ) | 303 | 125 | |||||||||||||||||
| Provision for loan and lease losses | 81 | (1,594 | ) | (1,823 | ) | (509 | ) | (873 | ) | 1,675 | 954 | |||||||||||||||||
| Ending Balance | $ | 5,291 | $ | 5,433 | $ | 7,553 | $ | 7,798 | $ | 8,754 | $ | (142 | ) | $ | (3,463 | ) | ||||||||||||
| Nonperforming organic assets | ||||||||||||||||||||||||||||
| Nonaccrual loans | $ | 6,423 | $ | 6,927 | $ | 9,416 | $ | 5,096 | $ | 5,117 | $ | (504 | ) | $ | 1,306 | |||||||||||||
| Total nonperforming organic loans | 6,423 | 6,927 | 9,416 | 5,096 | 5,117 | (504 | ) | 1,306 | ||||||||||||||||||||
| Other real estate owned | 83 | 42 | 33 | 33 | 500 | 41 | (417 | ) | ||||||||||||||||||||
| Total nonperforming organic assets | $ | 6,506 | $ | 6,969 | $ | 9,449 | $ | 5,129 | $ | 5,617 | $ | (463 | ) | $ | 889 | |||||||||||||
| Nonperforming purchased non-credit impaired assets | ||||||||||||||||||||||||||||
| Nonaccrual loans | $ | 1,672 | $ | 1,744 | $ | 1,705 | $ | 1,280 | $ | 1,639 | $ | (72 | ) | $ | 33 | |||||||||||||
| Accruing TDRs | — | — | 923 | 577 | — | — | — | |||||||||||||||||||||
| Total nonperforming PNCI loans | 1,672 | 1,744 | 2,628 | 1,857 | 1,639 | (72 | ) | 33 | ||||||||||||||||||||
| Other real estate owned | 21 | 21 | 22 | — | — | — | 21 | |||||||||||||||||||||
| Total nonperforming PNCI assets | $ | 1,693 | $ | 1,765 | $ | 2,650 | $ | 1,857 | $ | 1,639 | $ | (72 | ) | $ | 54 | |||||||||||||
| Ratios for organic assets | ||||||||||||||||||||||||||||
| Annualized QTD charge-offs (recoveries) on organic loans to average organic loans | .05 | % | .47 | % | .03 | % | (.02 | )% | .01 | % | (.42 | )% | .04 | % | ||||||||||||||
| Nonperforming organic loans to organic loans | .32 | .35 | .50 | .29 | .30 | (.03 | ) | .02 | ||||||||||||||||||||
| Nonperforming organic assets to organic loans + OREO | .32 | .35 | .50 | .29 | .33 | (.03 | ) | (.01 | ) | |||||||||||||||||||
| Past due organic loans to organic loans | .09 | .18 | .47 | .10 | .08 | (.09 | ) | .01 | ||||||||||||||||||||
| Allowance for loan and lease losses on organic loans to organic loans | 1.07 | 1.10 | 1.19 | 1.20 | 1.19 | (.03 | ) | (.12 | ) | |||||||||||||||||||
12
| State Bank Financial Corporation | ||||||||||||||||||||||||||||
| 3Q16 Financial Supplement: Table 6 (continued) | ||||||||||||||||||||||||||||
| Condensed Consolidated Asset Quality Data | ||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||
| 3Q16 change vs | ||||||||||||||||||||||||||||
| (Dollars in thousands) | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2Q16 | 3Q15 | |||||||||||||||||||||
| Ratios for purchased non-credit impaired loans | ||||||||||||||||||||||||||||
| Annualized QTD charge-offs (recoveries) on PNCI loans to average PNCI loans | .03 | % | (.05 | )% | .05 | % | — | % | (.01 | )% | .08 | % | .04 | % | ||||||||||||||
| Nonperforming PNCI loans to PNCI loans | .88 | .85 | 1.18 | .77 | .57 | .03 | .31 | |||||||||||||||||||||
| Nonperforming PNCI assets to PNCI loans + OREO | .90 | .86 | 1.19 | .77 | .57 | .04 | .33 | |||||||||||||||||||||
| Past due PNCI loans to PNCI loans | .41 | .40 | .30 | .39 | .64 | .01 | (.23 | ) | ||||||||||||||||||||
| Allowance for loan and lease losses on PNCI loans to PNCI loans | .08 | .08 | .07 | .02 | — | — | .08 | |||||||||||||||||||||
| Ratios for purchased credit impaired loans (1) | ||||||||||||||||||||||||||||
| Annualized QTD charge-offs (recoveries) on PCI loans to average PCI loans | .68 | % | 1.57 | % | (4.50 | )% | 1.20 | % | .83 | % | (.89 | )% | (.15 | )% | ||||||||||||||
| Past due PCI loans to PCI loans | 11.00 | 10.92 | 17.90 | 16.64 | 14.15 | .08 | (3.15 | ) | ||||||||||||||||||||
| Allowance for loan and lease losses on PCI loans to PCI loans | 4.17 | 4.04 | 5.40 | 5.36 | 5.49 | .13 | (1.32 | ) | ||||||||||||||||||||
(1) 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.
13
| State Bank Financial Corporation | ||||||||||||||||||||||||||
| 3Q16 Financial Supplement: Table 7 | ||||||||||||||||||||||||||
| Condensed Consolidated Average Balances and Yield Analysis | ||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||
| 3Q16 change vs | ||||||||||||||||||||||||||
| (Dollars in thousands) | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2Q16 | 3Q15 | |||||||||||||||||||
| Average Balances | ||||||||||||||||||||||||||
| Interest-bearing deposits in other financial institutions | $ | 63,315 | $ | 80,638 | $ | 126,289 | $ | 188,966 | $ | 179,526 | (17,323 | ) | (116,211 | ) | ||||||||||||
| Investment securities | 881,642 | 905,019 | 892,365 | 850,127 | 837,786 | (23,377 | ) | 43,856 | ||||||||||||||||||
| Loans, excluding purchased credit impaired (1) | 2,275,859 | 2,191,506 | 2,109,449 | 2,055,933 | 1,969,651 | 84,353 | 306,208 | |||||||||||||||||||
| Purchased credit impaired loans | 130,770 | 135,160 | 141,069 | 148,060 | 167,095 | (4,390 | ) | (36,325 | ) | |||||||||||||||||
| Total earning assets | 3,351,586 | 3,312,323 | 3,269,172 | 3,243,086 | 3,154,058 | 39,263 | 197,528 | |||||||||||||||||||
| Total nonearning assets | 212,884 | 211,908 | 207,474 | 212,256 | 189,965 | 976 | 22,919 | |||||||||||||||||||
| Total assets | 3,564,470 | 3,524,231 | 3,476,646 | 3,455,342 | 3,344,023 | 40,239 | 220,447 | |||||||||||||||||||
| Interest-bearing transaction accounts | 515,974 | 531,359 | 538,926 | 559,113 | 486,514 | (15,385 | ) | 29,460 | ||||||||||||||||||
| Savings & money market deposits | 1,105,635 | 1,052,106 | 1,036,498 | 1,066,783 | 1,042,941 | 53,529 | 62,694 | |||||||||||||||||||
| Time deposits less than $250,000 | 340,275 | 351,883 | 314,950 | 283,276 | 295,304 | (11,608 | ) | 44,971 | ||||||||||||||||||
| Time deposits $250,000 or greater | 61,172 | 64,869 | 53,786 | 50,784 | 57,511 | (3,697 | ) | 3,661 | ||||||||||||||||||
| Brokered and wholesale time deposits | 20,723 | 24,471 | 48,039 | 56,298 | 70,004 | (3,748 | ) | (49,281 | ) | |||||||||||||||||
| Other borrowings | 94,455 | 61,146 | 33,635 | 26,106 | 15,507 | 33,309 | 78,948 | |||||||||||||||||||
| Total interest-bearing liabilities | 2,138,234 | 2,085,834 | 2,025,834 | 2,042,360 | 1,967,781 | 52,400 | 170,453 | |||||||||||||||||||
| Noninterest-bearing deposits | 823,043 | 848,331 | 862,315 | 826,534 | 814,040 | (25,288 | ) | 9,003 | ||||||||||||||||||
| Other liabilities | 45,828 | 43,228 | 46,053 | 51,746 | 32,704 | 2,600 | 13,124 | |||||||||||||||||||
| Shareholders’ equity | 557,365 | 546,838 | 542,444 | 534,702 | 529,498 | 10,527 | 27,867 | |||||||||||||||||||
| Total liabilities and shareholders' equity | 3,564,470 | 3,524,231 | 3,476,646 | 3,455,342 | 3,344,023 | 40,239 | 220,447 | |||||||||||||||||||
| Interest Margins (2) | ||||||||||||||||||||||||||
| Interest-bearing deposits in other financial institutions | .28 | % | .33 | % | .38 | % | .28 | % | .27 | % | (.05 | )% | .01 | % | ||||||||||||
| Investment securities, tax-equivalent basis (3) | 2.11 | 2.07 | 2.05 | 1.87 | 1.86 | .04 | .25 | |||||||||||||||||||
| Loans, excluding purchased credit impaired, tax-equivalent basis (4) | 4.67 | 4.68 | 4.67 | 4.71 | 4.91 | (.01 | ) | (.24 | ) | |||||||||||||||||
| Purchased credit impaired loans | 28.40 | 41.54 | 27.78 | 38.16 | 26.49 | (13.14 | ) | 1.91 | ||||||||||||||||||
| Total earning assets | 4.84 | % | 5.37 | % | 4.79 | % | 5.23 | % | 4.98 | % | (.53 | )% | (.14 | )% | ||||||||||||
| Interest-bearing transaction accounts | .12 | .12 | .12 | .13 | .13 | — | (.01 | ) | ||||||||||||||||||
| Savings & money market deposits | .54 | .53 | .50 | .48 | .47 | .01 | .07 | |||||||||||||||||||
| Time deposits less than $250,000 | .67 | .64 | .51 | .39 | .38 | .03 | .29 | |||||||||||||||||||
| Time deposits $250,000 or greater | .77 | .71 | .53 | .33 | .36 | .06 | .41 | |||||||||||||||||||
| Brokered and wholesale time deposits | .92 | 1.07 | 1.07 | 1.03 | .97 | (.15 | ) | (.05 | ) | |||||||||||||||||
| Other borrowings | .40 | .52 | .65 | .76 | 1.69 | (.12 | ) | (1.29 | ) | |||||||||||||||||
| Total interest-bearing liabilities | .47 | % | .46 | % | .42 | % | .39 | % | .40 | % | .01 | % | .07 | % | ||||||||||||
| Net interest spread | 4.37 | % | 4.91 | % | 4.37 | % | 4.84 | % | 4.58 | % | (.54 | )% | (.21 | )% | ||||||||||||
| Net interest margin | 4.54 | % | 5.08 | % | 4.53 | % | 4.99 | % | 4.73 | % | (.54 | )% | (.19 | )% | ||||||||||||
| Net interest margin excluding accretion income | 3.57 | % | 3.53 | % | 3.48 | % | 3.40 | % | 3.52 | % | .04 | % | .05 | % | ||||||||||||
(1) Includes average nonaccrual loans of $8.6 million for 3Q16, $10.0 million for 2Q16, $8.9 million for 1Q16, $6.5 million for 4Q15, and $5.9 million for 3Q15.
(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 $0 for 3Q16, $2,000 for 2Q16, $2,000 for 1Q16, $3,000 for 4Q15, and $4,000 for 3Q15.
(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 $142,000 for 3Q16, $113,000 for 2Q16, $165,000 for 1Q16, $134,000 for 4Q15, and $179,000 for 3Q15.
14
| State Bank Financial Corporation | |||||||||||||||||||
| 3Q16 Financial Supplement: Table 8 | |||||||||||||||||||
| Reconciliation of Non-GAAP Measure (1) | |||||||||||||||||||
| Quarterly (Unaudited) | |||||||||||||||||||
| 3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | |||||||||||||||
| Book value per common share reconciliation | |||||||||||||||||||
| Tangible book value per common share | $ | 13.99 | $ | 13.77 | $ | 13.49 | $ | 13.22 | $ | 13.78 | |||||||||
| Effect of goodwill and other intangibles | 1.22 | 1.23 | 1.24 | 1.25 | 1.10 | ||||||||||||||
| Book value per common share (GAAP) | $ | 15.21 | $ | 15.00 | $ | 14.73 | $ | 14.47 | $ | 14.88 | |||||||||
(1) This press release includes tangible book value per common share, a financial measure not calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). The tangible book value measure is a non-GAAP measure and excludes the effect of the period end balance of intangible assets. Management believes that this non-GAAP tangible measure provides additional useful information, particularly since this measure is widely used by industry analysts for companies with prior merger and acquisition activities.
Reconciliations of this non-GAAP financial measures to the most directly comparable GAAP financial measure is presented in the accompanying table. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. This non-GAAP financial measure should not be considered as a substitute 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