State Bank Reports Third Quarter Financial Results

State Bank Financial Corporation Logo

  • Net income improves to $4.3 million as positive fundamental trends continue
  • Organic loans now comprise more than 80% of total gross loans
  • FDIC receivable decreased 26% in the quarter
  • Remaining accretable discount on loans covered by loss share agreements with the FDIC stands at $230 million
  • Board authorizes stock repurchase program

ATLANTA, Oct. 24, 2013 (GLOBE NEWSWIRE) -- State Bank Financial Corporation (Nasdaq:STBZ) today announced unaudited financial results for the quarter ended September 30, 2013. Net income for the third quarter of 2013 was $4.3 million, compared to $137 thousand for the second quarter of 2013 and $3.4 million for the third quarter of 2012. Fully diluted earnings per share were $.13 in the third quarter compared to $.00 in the second quarter of 2013 and $.10 in the third quarter of 2012. Separately, the company's board of directors authorized the repurchase of up to one million shares (approximately 3%) of the company's outstanding common stock. The shares may be repurchased from time to time in the open market or through privately negotiated transactions, depending upon market conditions and other factors.

Commenting on the results, Joe Evans, Chairman and CEO, said, "I am pleased with the results of the third quarter as we once again experienced solid organic loan growth and crossed the 80% threshold of noncovered loans to total loans, which led to a record high level of interest income on noncovered loans. Additionally, total expenses were down in the quarter, and our deposit funding mix continued to improve. The FDIC receivable and related amortization expense on the covered loan portfolio both declined in the quarter as we expect to continue to manage with confidence toward a soft landing for loss share expiration."

Operating Highlights

Net interest income was $44.4 million in the third quarter of 2013, up from $41.6 million in the second quarter of 2013 and $34.2 million in the third quarter of 2012. Accretion income on covered loans increased $2.2 million from the second quarter of 2013 primarily due to closing out of loan pools in the third quarter of 2013. Interest income on noncovered loans for the third quarter of 2013 was $15.8 million, up from $15.1 million in the prior quarter and $14.7 million in the third quarter of 2012. Yield on noncovered loans of 5.52% was down 11 basis points in the third quarter of 2013 due to increasingly competitive pricing pressure. Interest expense of $2.0 million in the third quarter of 2013 was down slightly versus the prior quarter and down from $2.2 million in the third quarter of 2012. Cost of funds for the third quarter was 38 basis points, up only one basis point from the second quarter of 2013 but down three basis points from the year ago period.

The noncovered loan portfolio continues to perform well, as annualized net charge-offs to average noncovered loans were 10 basis points in the third quarter of 2013. The provision for loan losses on noncovered loans was $905 thousand in the third quarter of 2013 and was primarily attributable to loan growth. The provision on noncovered loans totaled $665 thousand in the prior quarter and $1.1 million in the third quarter of 2012. The provision for loan losses on covered loans was a negative $636 thousand in the third quarter of 2013 due to actual cash flows continuing to exceed estimated cash flows. This compared to a provision of negative $1.3 million in the second quarter of 2013 and positive $5.4 million in the third quarter of 2012.

Noninterest income excluding amortization of the FDIC receivable for loss share agreements, which we refer to herein as the indemnification asset, was $4.5 million for the third quarter of 2013, up from $4.2 million in the second quarter of 2013. The linked-quarter increase was driven by gains on certain securities sold for overall asset/liability management purposes to shorten the duration of the investment portfolio, as well as higher service charge income in the quarter. Total noninterest income for the third quarter of 2013, which includes amortization of the indemnification asset, was negative $14.5 million compared to negative $16.5 million in the second quarter of 2013 and negative $3.3 million in the third quarter of 2012.

Amortization of the indemnification asset negatively impacted noninterest income by $19.0 million in the third quarter of 2013 compared to $20.8 million in the second quarter of 2013 and $6.3 million in the third quarter of 2012. We are currently projecting $73 million of scheduled amortization of the indemnification asset with an estimated weighted average life of four quarters, versus $230 million of scheduled loan accretion income with an estimated weighted average life of nine quarters. The $230 million of accretable discount remaining at September 30, 2013 is $27 million lower than at the end of the second quarter of 2013 but $57 million higher than at year-end 2012.

Total noninterest expense for the third quarter of 2013 was $23.1 million, down from $25.5 million in the second quarter of 2013 but up from $19.8 million in the third quarter of 2012. The $2.3 million decrease in noninterest expense in the third quarter of 2013 compared to the second quarter of 2013 was primarily due to lower loan collection and OREO costs, salaries and benefits and legal and professional fees. Loan collection and OREO costs declined $1.6 million in the third quarter of 2013. Salaries and benefits in the third quarter of 2013 totaled $14.8 million, a $753 thousand linked-quarter decline due largely to higher one-time costs in the second quarter of 2013. Legal and professional fees were down $326 thousand in the quarter due to lower external consulting fees.

Financial Condition

Total assets at quarter-end were $2.53 billion, down from $2.61 billion at June 30, 2013 and $2.64 billion at September 30, 2012. Loans not covered by loss share agreements with the FDIC grew a net $41.7 million from the second quarter of 2013 to $1.16 billion and have increased a net $227.5 million year-over-year. Noncovered loans now comprise 80.1% of total gross loans. Total net loans were $1.43 billion, up $3.1 million from the second quarter of 2013 but down $3.2 million from the third quarter of 2012 as covered loans continue to be resolved.

Total deposits at quarter-end were $2.05 billion, down from $2.13 billion at the end of the second quarter of 2013 and $2.12 billion at the end of the third quarter of 2012. Noninterest-bearing deposits declined $9.7 million from the second quarter of 2013 due to seasonality and period-end volatility of a few larger accounts, but increased $52.5 million from the third quarter of 2012. Noninterest-bearing deposits made up 20.5% of total deposits at September 30, 2013. Average noninterest-bearing deposits increased $12.2 million from the second quarter of 2013 and $66.3 million from the third quarter of 2012.

Tangible book value per share was $12.97 at the end of the third quarter. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 16.20% and a Tier I risk-based capital ratio of 26.18%.

Detailed Results

Supplemental tables displaying financial results for the third quarter of 2013, the previous four quarters and year-to-date 2013 are included with this press release.

Conference Call

State Bank Chief Executive Officer Joe Evans, Chief Financial Officer Tom Callicutt and Executive Risk Officer Kim Childers will discuss financial and business results for the quarter on a conference call today at 10:00 a.m. EDT. The dial in number is 1.800.616.4018. Please dial in 10 minutes prior to the start of the call to register. You will be asked to provide your name and affiliation/company to join the call. A replay of the conference call will be available shortly after the call's completion in the Investors section on the company's website at www.statebt.com. A slide presentation for today's call is also available in the Investors section on the company's website.

About State Bank Financial Corporation and State Bank and Trust Company

State Bank Financial Corporation (Nasdaq:STBZ) is the holding company for State Bank and Trust Company, one of Georgia's best-capitalized banks, with approximately $2.5 billion in assets as of September 30, 2013. State Bank has locations in Metro Atlanta and Middle Georgia.

To learn more about State Bank, visit www.statebt.com

The State Bank Financial Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=14370

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans, expectations and benefits of our strategic plan, including projections of future amortization and accretion, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as a downturn in the economy, unanticipated losses related to the integration of, and accounting for, acquired assets and assumed liabilities in our FDIC-assisted transactions, access to funding sources, greater than expected noninterest expenses, volatile credit and financial markets both domestic and foreign, potential deterioration in real estate values, regulatory changes and excessive loan losses, any or all of which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. See Item 1A, Risk Factors, in our Annual Report on Form 10-K for the year ended December 31, 2012, for a description of some of the important factors that may affect actual outcomes.

State Bank Financial Corporation
3Q13 Financial Supplement: Table 1
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
3Q13 Change vs.
(Dollars in thousands, except per share amounts) 3Q13 2Q13 1Q13 4Q12 3Q12 2Q13 3Q12
Income Statement Highlights
Total interest income on invested funds $ 2,587 $ 2,693 $ 2,502 $ 2,585 $ 2,847 $ (106) $ (260)
Interest income on noncovered loans, including fees 15,800 15,141 14,374 15,053 14,729 659 1,071
Accretion income on covered loans 27,978 25,787 20,636 27,839 18,893 2,191 9,085
Total interest expense 1,981 1,995 1,996 2,096 2,235 (14) (254)
Net interest income 44,384 41,626 35,516 43,381 34,234 2,758 10,150
Provision for loan losses (noncovered loans) 905 665 350 325 1,050 240 (145)
Provision for loan losses (covered loans) (636) (1,288) (2,385) 3,021 5,441 652 (6,077)
Amortization of FDIC receivable for loss share agreements (18,971) (20,762) (16,779) (15,260) (6,291) 1,791 (12,680)
Noninterest income 4,471 4,224 4,121 4,641 3,002 247 1,469
Noninterest expense 23,124 25,461 26,664 24,783 19,835 (2,337) 3,289
Income (loss) before income taxes 6,491 250 (1,771) 4,633 4,619 6,241 1,872
Income tax expense (benefit) 2,142 113 (615) 1,418 1,261 2,029 881
Net income (loss) $ 4,349 $ 137 $ (1,156) $ 3,215 $ 3,358 $ 4,212 $ 991
Per Common Share Data
Basic net income (loss) per share $ .14 $ — $ (.04) $ .10 $ .11 $ .14 $ .03
Diluted net income (loss) per share .13 (.04) .10 .10 .13 .03
Cash dividends declared per share .03 .03 .03 .03 .03
Book value per share at period end 13.36 13.34 13.38 13.48 13.42 .02 (.06)
Tangible book value per share at period end 12.97 12.94 12.96 13.06 13.18 .03 (.21)
Market price at period end 15.87 15.03 16.37 15.88 16.49 .84 (.62)
Period end shares outstanding 32,076,645 31,926,331 31,918,665 31,908,665 31,896,738 150,314 179,907
Weighted Average Shares Outstanding:
Basic 31,998,901 31,918,677 31,908,776 31,904,381 31,654,046 80,224 344,855
Diluted 33,296,650 33,124,681 31,908,776 33,179,198 32,808,726 171,969 487,924
Average Balance Sheet Highlights
Noncovered loans, net of unearned income $ 1,140,052 $ 1,083,549 $ 1,007,094 $ 955,153 $ 901,168 $ 56,503 $ 238,884
Covered loans 305,487 351,955 419,204 499,828 622,841 (46,468) (317,354)
Loans, net of unearned income 1,445,539 1,435,504 1,426,298 1,454,981 1,524,009 10,035 (78,470)
Assets 2,561,802 2,644,241 2,627,041 2,642,384 2,673,526 (82,439) (111,724)
Deposits 2,077,170 2,147,653 2,115,382 2,114,544 2,155,047 (70,483) (77,877)
Liabilities 2,134,590 2,217,002 2,197,455 2,211,127 2,246,107 (82,412) (111,517)
Equity 427,212 427,239 429,586 431,257 427,419 (27) (207)
Tangible common equity 414,516 414,181 416,155 421,617 419,596 335 (5,080)
Key Metrics (1)
Return on average assets .67% .02% (.18)% .48% .50% .65% .17%
Return on average equity 4.04 .13 (1.09) 2.97 3.13 3.91 .91
Yield on earning assets 8.31 7.76 6.95 8.48 6.77 .55 1.54
Cost of funds .38 .37 .38 .39 .41 .01 (.03)
Rate on interest-bearing liabilities .47 .46 .47 .48 .49 .01 (.02)
Net interest margin 7.95 7.41 6.58 8.09 6.36 .54 1.59
Average equity to average assets 16.68 16.16 16.35 16.32 15.99 .52 .69
Leverage ratio 16.20 15.57 15.51 15.49 15.44 .63 .76
Tier I risk-based capital ratio 26.18 25.88 28.17 29.25 29.95 .30 (3.77)
Total risk-based capital ratio 27.44 27.14 29.45 30.54 31.23 .30 (3.79)
Efficiency ratio 77.15 101.01 116.08 75.46 63.90 (23.86) 13.25
Average loans to average deposits 69.59 66.84 67.43 68.81 70.72 2.75 (1.13)
Noninterest-bearing deposits to total deposits 20.50 20.22 19.07 18.03 17.31 .28 3.19
Nonperforming loans to total noncovered loans (2) .25 .33 .42 .49 .58 (.08) (.33)
Nonperforming assets to loans + OREO:
Noncovered .33 .42 .44 .60 .67 (.09) (.34)
Covered 15.11 13.56 10.67 8.67 9.43 1.55 5.68
(1) Income calculated on a fully tax-equivalent basis.
(2) The ratio of nonperforming covered loans to total covered loans is not presented, as there are no covered loans designated as nonperforming.
State Bank Financial Corporation
3Q13 Financial Supplement: Table 2
Condensed Consolidated Balance Sheets
Quarterly (Unaudited)
3Q13 Change vs.
(Dollars in thousands) 3Q13 2Q13 1Q13 4Q12 3Q12 2Q13 3Q12
Assets
Cash and amounts due from depository institutions $ 7,888 $ 6,783 $ 7,680 $ 9,974 $ 6,784 $ 1,105 $ 1,104
Interest-bearing deposits in other financial institutions 399,267 430,937 459,494 433,483 345,399 (31,670) 53,868
Cash and cash equivalents 407,155 437,720 467,174 443,457 352,183 (30,565) 54,972
Investment securities available-for-sale 374,838 370,146 351,565 303,901 311,323 4,692 63,515
Loans receivable:
Noncovered under FDIC loss share agreements 1,164,854 1,123,122 1,051,455 985,502 937,331 41,732 227,523
Covered under FDIC loss share agreements 290,077 333,683 396,831 474,713 553,006 (43,606) (262,929)
Allowance for loan losses (noncovered loans) (16,427) (15,805) (15,122) (14,660) (14,330) (622) (2,097)
Allowance for loan losses (covered loans) (12,075) (17,630) (28,706) (55,478) (46,411) 5,555 34,336
Net loans 1,426,429 1,423,370 1,404,458 1,390,077 1,429,596 3,059 (3,167)
Mortgage loans held for sale 885 753 2,386 4,853 2,130 132 (1,245)
Other real estate owned:
Noncovered under FDIC loss share agreements 974 1,097 276 1,115 892 (123) 82
Covered under FDIC loss share agreements 51,651 52,345 47,401 45,062 57,595 (694) (5,944)
Premises and equipment, net 33,988 34,856 35,379 35,364 38,282 (868) (4,294)
Goodwill 10,381 10,381 10,381 10,381 6,562 3,819
Other intangibles, net 2,150 2,449 2,819 3,188 1,103 (299) 1,047
FDIC receivable for loss share agreements 156,549 210,557 258,848 355,325 354,978 (54,008) (198,429)
Other assets 62,101 64,023 60,619 68,311 87,603 (1,922) (25,502)
Total assets $ 2,527,101 $ 2,607,697 $ 2,641,306 $ 2,661,034 $ 2,642,247 $ (80,596) $ (115,146)
Liabilities and Shareholders' Equity
Noninterest-bearing deposits $ 420,269 $ 429,960 $ 409,717 $ 387,450 $ 367,762 $ (9,691) $ 52,507
Interest-bearing deposits 1,629,642 1,696,124 1,738,473 1,760,986 1,756,536 (66,482) (126,894)
Total deposits 2,049,911 2,126,084 2,148,190 2,148,436 2,124,298 (76,173) (74,387)
Securities sold under agreements to repurchase 1,082 3,576 3,959 4,755 607 (2,494) 475
Notes payable 5,690 5,698 3,861 2,523 2,527 (8) 3,163
Other liabilities 41,825 46,413 58,360 75,104 86,617 (4,588) (44,792)
Total liabilities 2,098,508 2,181,771 2,214,370 2,230,818 2,214,049 (83,263) (115,541)
Total shareholders' equity 428,593 425,926 426,936 430,216 428,198 2,667 395
Total liabilities and shareholders' equity $ 2,527,101 $ 2,607,697 $ 2,641,306 $ 2,661,034 $ 2,642,247 $ (80,596) $ (115,146)
Capital Ratios
Average equity to average assets 16.79% 16.16% 16.35% 16.32% 15.99% .63% .80%
Leverage ratio 16.20 15.57 15.51 15.49 15.44 .63 .76
Tier I risk-based capital ratio 26.18 25.88 28.17 29.25 29.95 .30 (3.77)
Total risk-based capital ratio 27.44 27.14 29.45 30.54 31.23 .30 (3.79)
State Bank Financial Corporation
3Q13 Financial Supplement: Table 3
Condensed Consolidated Income Statements
Quarterly (Unaudited)
3Q13 Change vs.
(Dollars in thousands, except per share amounts) 3Q13 2Q13 1Q13 4Q12 3Q12 2Q13 3Q12
Total interest income on invested funds $ 2,587 $ 2,693 $ 2,502 $ 2,585 $ 2,847 $ (106) $ (260)
Interest income on noncovered loans, including fees 15,800 15,141 14,374 15,053 14,729 659 1,071
Accretion income on covered loans 27,978 25,787 20,636 27,839 18,893 2,191 9,085
Total interest expense 1,981 1,995 1,996 2,096 2,235 (14) (254)
Net interest income 44,384 41,626 35,516 43,381 34,234 2,758 10,150
Provision for loan losses (noncovered loans) 905 665 350 325 1,050 240 (145)
Provision for loan losses (covered loans) (636) (1,288) (2,385) 3,021 5,441 652 (6,077)
Net interest income after provision for loan losses 44,115 42,249 37,551 40,035 27,743 1,866 16,372
Noninterest Income:
Amortization of FDIC receivable for loss share agreements (18,971) (20,762) (16,779) (15,260 (6,291) 1,791 (12,680)
Service charges on deposits 1,353 1,284 1,215 1,408 1,298 69 55
Mortgage banking income 260 289 306 363 255 (29) 5
Gain on sale of investment securities 717 364 225 717 717
Gain on FHLB stock redemptions 680 101 (101)
Payroll fee income 727 705 832 622 22 727
ATM income 604 635 605 619 611 (31) (7)
Other 810 1,311 799 724 737 (501) 73
Total noninterest income (14,500) (16,538) (12,658) (10,619) (3,289) 2,038 (11,211)
Noninterest Expense:
Salaries and employee benefits 14,794 15,547 17,395 15,134 12,811 (753) 1,983
Occupancy and equipment 2,431 2,550 2,456 2,500 2,469 (119) (38)
Legal and professional fees 954 1,280 1,601 1,669 1,265 (326) (311)
Marketing 457 350 328 968 573 107 (116)
Federal insurance premiums and other regulatory fees 939 604 469 673 378 335 561
Loan collection and OREO costs 374 1,944 1,288 929 (484) (1,570) 858
Data processing 1,551 1,504 1,437 1,272 1,196 47 355
Amortization of intangibles 299 369 370 251 256 (70) 43
Other 1,325 1,313 1,320 1,387 1,371 12 (46)
Total noninterest expense 23,124 25,461 26,664 24,783 19,835 (2,337) 3,289
Income (Loss) Before Income Taxes 6,491 250 (1,771) 4,633 4,619 6,241 1,872
Income tax expense (benefit) 2,142 113 (615) 1,418 1,261 2,029 881
Net Income (Loss) $ 4,349 $ 137 $ (1,156) $ 3,215 $ 3,358 $ 4,212 $ 991
Basic Net Income (Loss) Per Share $ .14 $ — $ (.04) $ .10 $ .11 $ .14 $ .03
Diluted Net Income (Loss) Per Share .13 (.04) .10 .10 .13 .03
Weighted Average Shares Outstanding:
Basic 31,998,901 31,918,677 31,908,776 31,904,381 31,654,046 80,224 344,855
Diluted 33,296,650 33,124,681 31,908,776 33,179,198 32,808,726 171,969 487,924
State Bank Financial Corporation
3Q13 Financial Supplement: Table 4
Condensed Consolidated Income Statements
Year to Date (Unaudited)
Nine Months Ended September 30
(Dollars in thousands, except per share amounts) 2013 2012 YTD Change
Total interest income on invested funds $ 7,782 $ 8,805 $ (1,023)
Interest income on noncovered loans, including fees 45,315 40,407 4,908
Accretion income on covered loans 74,401 74,574 (173)
Total interest expense 5,972 7,653 (1,681)
Net interest income 121,526 116,133 5,393
Provision for loan losses (noncovered loans) 1,920 4,710 (2,790)
Provision for loan losses (covered loans) (4,309) 7,060 (11,369)
Net interest income after provision for loan losses 123,915 104,363 19,552
Noninterest Income:
Amortization of FDIC receivable for loss share agreements (56,512) (17,309) (39,203)
Service charges on deposits 3,852 3,709 143
Mortgage banking income 855 868 (13)
Gain on sale of investment securities 1,081 93 988
Gains on FHLB stock redemptions 535 (535)
Payroll fee income 2,264 2,264
ATM income 1,844 1,806 38
Other 2,920 919 2,001
Total noninterest income (43,696) (9,379 (34,317)
Noninterest Expense:
Salaries and employee benefits 47,736 39,402 8,334
Occupancy and equipment 7,437 7,345 92
Legal and professional fees 3,835 4,955 (1,120
Marketing 1,135 1,203 (68
Federal insurance premiums and other regulatory fees 2,012 1,151 861
Loan collection and OREO costs 3,606 1,031 2,575
Data processing 4,492 4,396 96
Amortization of intangibles 1,038 778 260
Other 3,958 4,192 (234)
Total noninterest expense 75,249 64,453 10,796
Income Before Income Taxes 4,970 30,531 (25,561)
Income tax expense 1,640 11,004 (9,364)
Net Income $ 3,330 $ 19,527 $ (16,197)
Basic Net Income Per Share $ .10 $ .62 $ (.52)
Diluted Net Income Per Share .10 .60 (.50)
Weighted Average Shares Outstanding:
Basic 31,942,470 31,626,511 315,959
Diluted 33,215,846 32,793,460 422,386
State Bank Financial Corporation
3Q13 Financial Supplement: Table 5
Condensed Consolidated Composition of Loans and Deposits at Period Ends
Quarterly (Unaudited)
3Q13 Change vs.
(Dollars in thousands) 3Q13 2Q13 1Q13 4Q12 3Q12 2Q13 3Q12
Composition of Loans
Noncovered loans:
Construction, land & land development $ 285,855 $ 295,756 $ 265,055 $ 230,448 $ 249,739 $ (9,901) $ 36,116
Other commercial real estate 552,579 508,620 486,287 457,729 411,574 43,959 141,005
Total commercial real estate 838,434 804,376 751,342 688,177 661,313 34,058 177,121
Commercial & industrial 27,573 33,908 35,944 35,390 33,817 (6,335) (6,244)
Owner-occupied real estate 181,882 186,652 176,426 172,445 163,327 (4,770) 18,555
Total commercial & industrial 209,455 220,560 212,370 207,835 197,144 (11,105) 12,311
Residential real estate 63,386 53,962 45,433 43,179 41,514 9,424 21,872
Consumer & other 53,579 44,224 42,310 46,311 37,360 9,355 16,219
Total noncovered loans 1,164,854 1,123,122 1,051,455 985,502 937,331 41,732 227,523
Covered loans:
Construction, land & land development 40,268 51,660 58,802 81,288 98,546 (11,392) (58,278)
Other commercial real estate 77,040 91,246 115,194 139,010 165,148 (14,206) (88,108)
Total commercial real estate 117,308 142,906 173,996 220,298 263,694 (25,598) (146,386)
Commercial & industrial 6,378 8,059 10,811 14,859 21,281 (1,681) (14,903)
Owner-occupied real estate 55,723 67,568 80,239 86,612 100,151 (11,845) (44,428)
Total commercial & industrial 62,101 75,627 91,050 101,471 121,432 (13,526) (59,331)
Residential real estate 109,806 114,036 131,254 142,032 156,368 (4,230) (46,562)
Consumer & other 862 1,114 531 10,912 11,512 (252) (10,650)
Total covered loans 290,077 333,683 396,831 474,713 553,006 (43,606) (262,929)
Total loans $ 1,454,931 $ 1,456,805 $ 1,448,286 $ 1,460,215 $ 1,490,337 $ (1,874) $ (35,406)
Composition of Deposits
Noninterest-bearing demand deposits $ 420,269 $ 429,960 $ 409,717 $ 387,450 $ 367,762 $ (9,691) $ 52,507
Interest-bearing transaction accounts 304,085 351,288 333,336 355,651 324,305 (47,203) (20,220)
Savings and money market deposits 908,410 911,415 959,912 949,631 960,714 (3,005) (52,304)
Time deposits less than $100,000 177,634 186,874 194,098 201,658 208,769 (9,240) (31,135)
Time deposits $100,000 or greater 132,538 139,672 144,501 147,363 157,414 (7,134) (24,876)
Brokered and wholesale time deposits 106,975 106,875 106,626 106,683 105,334 100 1,641
Total deposits $ 2,049,911 $ 2,126,084 $ 2,148,190 $ 2,148,436 $ 2,124,298 $ (76,173) $ (74,387)
State Bank Financial Corporation
3Q13 Financial Supplement: Table 6
Condensed Consolidated Asset Quality Data
Quarterly (Unaudited)
3Q13 Change vs.
(Dollars in thousands) 3Q13 2Q13 1Q13 4Q12 3Q12 2Q13 3Q12
Nonperforming noncovered assets:
Nonaccrual loans $ 1,972 $ 2,695 $ 3,413 $ 2,621 $ 4,117 $ (723) $ (2,145)
Troubled debt restructurings 956 973 970 2,171 1,297 (17) (341)
Total nonperforming noncovered loans 2,928 3,668 4,383 4,792 5,414 (740) (2,486)
Other real estate owned 974 1,097 276 1,115 892 (123) 82
Total nonperforming noncovered assets 3,902 4,765 4,659 5,907 6,306 (863) (2,404)
Nonperforming covered assets:
Other real estate owned (1) $ 51,651 $ 52,345 $ 47,401 $ 45,062 $ 57,595 $ (694) $ (5,944)
Noncovered assets:
Charge-offs $ 330 $ 8 $ 12 $ 2 $ 112 $ 322 $ 218
Recoveries 47 26 124 7 75 21 (28)
Net charge-offs (recoveries) $ 283 $ (18) $ (112) $ (5) $ 37 $ 301 $ 246
Ratios:
Annualized QTD net charge-offs (recoveries) to total average noncovered loans .10% (.01)% (.05)% —% .02% .11% .08%
Nonperforming loans to total noncovered loans (2) .25 .33 .42 .49 .58 (.08) (.33)
Nonperforming assets to loans + ORE:
Noncovered .33 .42 .44 .60 .67 (.09) (.34)
Covered 15.11 13.56 10.67 8.67 9.43 1.55 5.68
Allowance for loan losses to loans:
Noncovered 1.41 1.41 1.44 1.49 1.53 (.12)
Covered 4.16 5.28 7.23 11.69 8.39 (1.12) (4.23)
(1) Total nonperforming assets for covered assets consist of other real estate only. There are no covered loans designated as nonperforming.
(2) The ratio of nonperforming covered loans to total covered loans is not presented, as there are no covered loans designated as nonperforming.
State Bank Financial Corporation
3Q13 Financial Supplement: Table 7
Condensed Consolidated Average Balances and Yield Analysis
Quarterly (Unaudited)
3Q13 Change vs.
(Dollars in thousands) 3Q13 2Q13 1Q13 4Q12 3Q12 2Q13 3Q12
Selected Average Balances
Interest-bearing deposits in other financial institutions $ 398,391 $ 465,823 $ 447,929 $ 371,873 $ 333,882 $ (67,432) $ 64,509
Taxable investment securities 369,485 352,955 314,510 302,102 279,549 16,530 89,936
Nontaxable investment securities 5,836 6,436 7,089 9,028 9,113 (600) (3,277)
Noncovered loans receivable (1) 1,140,052 1,083,549 1,007,094 955,153 901,168 56,503 238,884
Covered loans receivable 305,487 351,955 419,204 499,828 622,841 (46,468) (317,354)
Total earning assets 2,219,251 2,260,718 2,195,826 2,137,984 2,146,553 (41,467) 72,698
Total nonearning assets 342,551 383,523 431,215 504,400 526,973 (40,972) (184,422)
Total assets 2,561,802 2,644,241 2,627,041 2,642,384 2,673,526 (82,439) (111,724)
Interest-bearing transaction accounts 320,168 360,221 324,342 315,541 321,328 (40,053) (1,160)
Savings & money market deposits 908,275 936,819 956,517 954,260 997,939 (28,544) (89,664)
Time deposits less than $100,000 181,865 190,795 197,893 204,821 214,488 (8,930) (32,623)
Time deposits $100,000 or greater 137,147 142,364 145,329 152,534 162,314 (5,217) (25,167)
Brokered and wholesale time deposits 106,918 106,818 106,641 106,712 102,468 100 4,450
Notes payable 5,695 5,026 2,536 2,525 2,529 669 3,166
Securities sold under agreements to repurchase 2,438 5,083 3,388 5,352 2,448 (2,645) (10)
Total interest-bearing liabilities 1,662,506 1,747,126 1,736,646 1,741,745 1,803,514 (84,620) (141,008)
Noninterest-bearing demand deposits 422,797 410,636 384,660 380,676 356,510 12,161 66,287
Other liabilities 49,287 59,240 76,149 88,706 86,083 (9,953) (36,796)
Shareholders' equity 427,212 427,239 429,586 431,257 427,419 (27) (207)
Total liabilities and shareholders' equity 2,561,802 2,644,241 2,627,041 2,642,384 2,673,526 (82,439) (111,724)
Interest Margins (2)
Interest-bearing deposits in other financial institutions .31% .27% .23% .27% .22% .04% .09%
Taxable investment securities 2.39 2.65 2.83 2.97 3.68 (.26) (1.29)
Nontaxable investment securities, tax-equivalent basis (3) 4.89 4.86 5.09 5.29 5.28 .03 (.39)
Noncovered loans receivable, tax-equivalent basis (4) 5.52 5.63 5.82 6.29 6.52 (.11) (1.00)
Covered loans receivable 36.34 29.39 19.96 22.16 12.07 6.95 24.27
Total earning assets 8.31% 7.76% 6.95% 8.48% 6.77% .55% 1.54%
Interest-bearing transaction accounts .11 .10 .12 .11 .12 .01 (.01)
Savings & money market deposits .42 .42 .43 .45 .46 (.04)
Time deposits less than $100,000 .57 .59 .59 .62 .68 (.02) (.11)
Time deposits $100,000 or greater .71 .72 .74 .75 .80 (.01) (.09)
Brokered and wholesale time deposits .93 .93 .93 .94 .92 .01
Notes payable 11.49 10.77 12.79 8.67 8.49 .72 3.00
Securities sold under agreements to repurchase .16 .08 .12 .07 .16 .08
Total interest-bearing liabilities .47 .46 .47 .48 .49 .01 (.02)
Net interest spread 7.84 7.30 6.48 8.00 6.28 .54 1.56
Net interest margin 7.95% 7.41% 6.58% 8.09% 6.36% .54% 1.59%
(1) The above amount includes average nonaccrual loans of $2,371 for 3Q13, $4,136 for 2Q13, $3,980 for 1Q13, $3,337 for 4Q12, and $4,114 for 3Q12.
(2) Annualized for the applicable period.
(3) Reflects taxable equivalent adjustments using the 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 $25 for 3Q13, $27 for 2Q13, $31 for 1Q13, $42 for 4Q12, and $42 for 3Q12.
(4) Reflects taxable equivalent adjustments using the 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 $72 for 3Q13, $73 for 2Q13, $69 for 1Q13, $55 for 4Q12, and $41 for 3Q12.

CONTACT: Media Contact: David Rubinger 404.502.1240 / david@rubinger.com Investor Relations Contact: Jeremy Lucas 404.239.8626 / jeremy.lucas@statebt.com

Source:State Bank Financial Corporation