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State Bank Financial Corporation Reports First Quarter Financial Results

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  • First quarter 2014 net income of $4.3 million, or $.13 per diluted share
  • Net organic loan growth of $43 million
  • Year-over-year and linked-quarter growth in payroll fee income
  • Announced transaction with Atlanta Bancorporation subsequent to quarter-end

ATLANTA, April 30, 2014 (GLOBE NEWSWIRE) -- State Bank Financial Corporation (Nasdaq:STBZ) today announced unaudited financial results for the quarter ended March 31, 2014. Net income for the first quarter of 2014 was $4.3 million, compared to a net loss of $1.2 million for the first quarter of 2013 and net income of $9.4 million for the fourth quarter of 2013. Fully diluted earnings per share were $.13 in the first quarter of 2014 compared to a loss per share of $.04 in the first quarter of 2013 and fully diluted earnings per share of $.28 in the fourth quarter of 2013.

Joe Evans, Chairman and CEO, commented, "The first quarter of 2014 provided a solid start to the year for our company. I am very pleased with the positive trends in our traditional banking operations: our payroll business posted a record quarter, we experienced solid growth in organic loans and noninterest-bearing deposits, our credit metrics remained exceptional and our expense levels reflected the benefit of the efficiency actions undertaken over the past year. As expected, the FDIC receivable and related amortization expense on the covered loan portfolio both declined in the quarter, and we feel very well prepared for the expiration of our largest commercial loss share agreements later this year."

Operating Highlights

Net interest income was $42.4 million in the first quarter of 2014, down from $64.4 million in the fourth quarter of 2013 but up from $35.5 million in the first quarter of 2013. Accretion income on covered loans was $26.5 million in the first quarter of 2014, down from $48.1 million in the fourth quarter of 2013 due to smaller gains on covered loan pools closing out in the first quarter of 2014 compared to the fourth quarter of 2013. Interest income on noncovered loans for the first quarter of 2014 was $15.3 million, down from $15.9 million in the prior quarter, but up from $14.4 million in the first quarter of 2013. The yield on noncovered loans decreased slightly versus the prior quarter, down four basis points to 5.49% in the first quarter of 2014. The higher yield in the previous quarter was elevated, in part, by the acceleration of fee income recognition resulting from the high level of payoffs we experienced in the fourth quarter of 2013. Interest expense of $1.9 million in the first quarter of 2014 was down slightly versus the prior quarter and the prior year. Cost of funds for the first quarter of 2014 of 37 basis points was unchanged from the prior quarter and down one basis point from the first quarter of 2013.

The noncovered loan portfolio continues to perform well, as recoveries were greater than charge-offs in the first quarter of 2014. We recorded no provision for loan losses on noncovered loans for the second straight quarter. The provision on covered loans, net of the FDIC benefit, was $590 thousand in the first quarter of 2014 principally related to one of the pools that closed in the quarter.

Noninterest income excluding amortization of the FDIC receivable for loss share agreements, which we refer to as the indemnification asset, was $3.1 million for the first quarter of 2014, down from $4.0 million in the fourth quarter of 2013. Higher linked-quarter payroll fee income of $74 thousand partially offset a $146 thousand decrease in service charge income, which declined due to lower consumer NSF fees. Noninterest income was also impacted by ineffectiveness in the hedges on underlying fixed-rate loans, which contributed to a $526 thousand linked-quarter decline. Total noninterest income for the first quarter of 2014, which includes amortization of the indemnification asset, was negative $12.2 million compared to negative $27.4 million in the fourth quarter of 2013 and negative $12.7 million in the first quarter of 2013.

Amortization of the indemnification asset negatively impacted noninterest income by $15.3 million in the first quarter of 2014 compared to $31.4 million in the fourth quarter of 2013 and $16.8 million in the first quarter of 2013. As of March 31, 2014, we are currently projecting $29 million of scheduled amortization of the indemnification asset with an estimated weighted average life of four quarters, versus $156 million of scheduled loan accretion income with an estimated weighted average life of ten quarters. Although the estimated weighted average life of the scheduled amortization and remaining accretable discount increased slightly this quarter, the effect of this lengthening is not significant, since we are dealing with much lower overall amounts compared to previous quarters. This lengthening of the weighted average life of both accretion and amortization is expected as the larger, shorter-term non-single family tranches of loss share expire and the related assets are resolved.

Total noninterest expense for the first quarter of 2014 was $23.1 million, up $365 thousand from the fourth quarter of 2013 but down $3.6 million from the first quarter of 2013. Salary and benefit costs increased to $15.1 million for the first quarter of 2014 from $14.5 million in the prior quarter driven primarily by higher seasonal tax and benefit costs, including higher FICA taxes. Approximately $200 thousand of the $577 thousand linked-quarter increase in salaries and benefits was due to one-time severance costs related to headcount reductions in the special assets division. Loan collection and OREO costs decreased $109 thousand linked-quarter to $624 thousand in the first quarter of 2014.

Financial Condition

Total assets at March 31, 2014 were $2.62 billion, up from $2.60 billion at December 31, 2013 but down from $2.64 billion at March 31, 2013. Loans not covered by loss share agreements with the FDIC increased to $1.17 billion at March 31, 2014, a net increase of $43.4 million from the fourth quarter of 2013. Noncovered loans comprise 82.6% of total gross loans at March 31, 2014. Total net loans were $1.38 billion at March 31, 2014, up $30.2 million from the fourth quarter of 2013 but down $27.3 million from the first quarter of 2013 as covered loans continue to be resolved.

Total deposits at March 31, 2014 were $2.14 billion, up from $2.13 billion at the end of the fourth quarter of 2013 but down from $2.15 billion at the end of the first quarter of 2013. Noninterest-bearing deposits increased $3.3 million from the fourth quarter of 2013 and $61.7 million from the first quarter of 2013. Period-end noninterest-bearing deposits represented 22.0% of total deposits as of March 31, 2014. Average noninterest-bearing deposits increased $10.3 million from the fourth quarter of 2013 and $57.2 million from the first quarter of 2013.

Tangible book value per share was $13.36 at the end of the first quarter of 2014. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 16.67% and a Tier I risk-based capital ratio of 27.20%.

Recent Transaction

On April 28, 2014, State Bank Financial Corporation announced the signing of a definitive agreement with Atlanta Bancorporation, Inc. and its wholly-owned subsidiary, Bank of Atlanta. Upon closing of the transaction, Atlanta Bancorporation will merge into State Bank Financial, immediately followed by the merger of Bank of Atlanta into State Bank and Trust Company, a wholly-owned subsidiary of State Bank Financial. Bank of Atlanta is headquartered in midtown Atlanta and operates one additional banking office in Duluth, Georgia. At March 31, 2014, Bank of Atlanta had approximately $198 million of total assets, $123 million of loans and $161 million of deposits. State Bank Financial has agreed to pay approximately $25 million in cash for all outstanding shares of Atlanta Bancorporation. The agreement has been unanimously approved by the Boards of Directors of both companies and is expected to close no later than the fourth quarter of 2014. Completion of the transaction is subject to certain closing conditions, including customary regulatory approvals and the approval by Atlanta Bancorporation shareholders.

Detailed Results

Supplemental tables displaying financial results for the first quarter of 2014 and the previous four quarters 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 1.800.918.9476. 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 $2.6 billion in assets as of March 31, 2014. State Bank has locations in Metro Atlanta and Middle Georgia.

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

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

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans, expectations and benefits of our strategic plan, including projections and expectations of future growth, the impact of the expiration of our loss share agreements, amortization of the FDIC receivable for loss share agreements and accretion on covered loans, 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, 2013, for a description of some of the important factors that may affect actual outcomes.

State Bank Financial Corporation
1Q14 Financial Supplement: Table 1
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
1Q14 Change vs.
(Dollars in thousands, except per share data) 1Q14 4Q13 3Q13 2Q13 1Q13 4Q13 1Q13
Income Statement Highlights
Total interest income on invested funds $ 2,493 $ 2,416 $ 2,587 $ 2,693 $ 2,502 $ 77 $ (9)
Interest income on noncovered loans, including fees 15,275 15,861 15,800 15,141 14,374 (586) 901
Accretion income on covered loans 26,536 48,065 27,978 25,787 20,636 (21,529) 5,900
Total interest expense 1,894 1,961 1,981 1,995 1,996 (67) (102)
Net interest income 42,410 64,381 44,384 41,626 35,516 (21,971) 6,894
Provision for loan losses (noncovered loans) -- -- 905 665 350 -- (350)
Provision for loan losses (covered loans) 590 (98) (636) (1,288) (2,385) 688 2,975
Amortization of FDIC Receivable for loss share agreements (15,292) (31,372) (18,971) (20,762) (16,779) 16,080 1,487
Noninterest income 3,103 3,955 4,471 4,224 4,121 (852) (1,018)
Noninterest expense 23,083 22,718 23,124 25,461 26,664 365 (3,581)
Income (loss) before income taxes 6,548 14,344 6,491 250 (1,771) (7,796) 8,319
Income tax expense (benefit) 2,226 4,927 2,142 113 (615) (2,701) 2,841
Net income (loss) $ 4,322 $ 9,417 $ 4,349 $ 137 $ (1,156) $ (5,095) $ 5,478
Per Common Share Data
Basic net income (loss) per share $ .13 $ .29 $ .14 $ -- $ (.04) $ (.16) $ .17
Diluted net income (loss) per share .13 .28 .13 -- (.04) (.15) .17
Cash dividends declared per share .03 .03 .03 .03 .03 -- --
Book value per share at period end 13.74 13.62 13.36 13.34 13.38 .12 .36
Tangible book value per share at period end 13.36 13.24 12.97 12.94 12.96 .12 .40
Market price at period end 17.69 18.19 15.87 15.03 16.37 (.50) 1.32
Period end shares outstanding 32,123,645 32,094,145 32,076,645 31,926,331 31,918,665 29,500 204,980
Weighted Average Shares Outstanding:
Basic 32,094,473 32,086,781 31,998,901 31,918,677 31,908,776 7,692 185,697
Diluted 33,644,135 33,519,550 33,296,650 33,124,681 31,908,776 124,585 1,735,359
Average Balance Sheet Highlights
Noncovered loans, net of unearned income $ 1,133,802 $ 1,144,116 $ 1,140,052 $ 1,083,549 $ 1,007,094 $ (10,314) $ 126,708
Covered loans 250,824 258,600 305,487 351,955 419,204 (7,776) (168,380)
Loans, net of unearned income 1,384,626 1,402,716 1,445,539 1,435,504 1,426,298 (18,090) (41,672)
Assets 2,575,216 2,559,725 2,561,802 2,644,241 2,627,041 15,491 (51,825)
Deposits 2,088,787 2,089,202 2,077,170 2,147,653 2,115,382 (415) (26,595)
Liabilities 2,136,111 2,130,231 2,134,590 2,217,002 2,197,455 5,880 (61,344)
Equity 439,105 429,494 427,212 427,239 429,586 9,611 9,519
Tangible common equity 426,828 417,030 414,516 414,181 416,155 9,798 10,673
Key Metrics
Return on average assets .68% 1.46% .67% .02% (.18)% (.78)% .86%
Return on average equity 3.99 8.70 4.04 .13 (1.09) (4.71) 5.08
Yield on earning assets 7.71 11.60 8.30 7.75 6.94 (3.89) .77
Cost of funds .37 .37 .38 .37 .38 -- (.01)
Rate on interest-bearing liabilities .46 .47 .47 .46 .47 (.01) (.01)
Net interest margin 7.38 11.26 7.95 7.40 6.58 (3.88) .80
Average equity to average assets 17.05 16.78 16.68 16.16 16.35 .27 .70
Leverage ratio 16.67 16.55 16.20 15.57 15.51 .12 1.16
Tier I risk-based capital ratio 27.20 27.85 26.18 25.88 28.17 (.65) (.97)
Total risk-based capital ratio 28.47 29.11 27.44 27.14 29.45 (.64) (.98)
Efficiency ratio (1) 76.19 61.28 77.16 101.14 116.21 14.91 (40.02)
Average loans to average deposits 66.29 67.14 69.59 66.84 67.43 (.85) (1.14)
Noninterest-bearing deposits to total deposits 22.02 22.00 20.50 20.22 19.07 .02 2.95
Nonperforming loans to total noncovered loans (2) .18 .20 .25 .32 .41 (.02) (.23)
Nonperforming assets to loans + ORE:
Noncovered .26 .29 .33 .42 .44 (.03) (.18)
Covered 13.23 15.22 15.11 13.56 10.67 (1.99) 2.56
(1) 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
1Q14 Financial Supplement: Table 2
Condensed Consolidated Balance Sheets
Quarterly (Unaudited)
1Q14 Change vs.
(Dollars in thousands) 1Q14 4Q13 3Q13 2Q13 1Q13 4Q13 1Q13
Assets
Cash and amounts due from depository institutions $ 7,314 $ 8,518 $ 7,888 $ 6,783 $ 7,680 $ (1,204) $ (366)
Interest-bearing deposits in other financial institutions 549,593 590,231 399,267 430,937 459,494 (40,638) 90,099
Cash and cash equivalents 556,907 598,749 407,155 437,720 467,174 (41,842) 89,733
Investment securities available-for-sale 454,053 387,048 374,838 370,146 351,565 67,005 102,488
Loans receivable:
Noncovered under FDIC loss share agreements 1,166,913 1,123,475 1,164,854 1,123,122 1,051,455 43,438 115,458
Covered under FDIC loss share agreements 246,279 257,494 290,077 333,683 396,831 (11,215) (150,552)
Allowance for loan losses (noncovered loans) (16,858) (16,656) (16,427) (15,805) (15,122) (202) (1,736)
Allowance for loan losses (covered loans) (19,182) (17,409) (12,075) (17,630) (28,706) (1,773) 9,524
Net loans 1,377,152 1,346,904 1,426,429 1,423,370 1,404,458 30,248 (27,306)
Mortgage loans held for sale 1,552 897 885 753 2,386 655 (834)
Other real estate owned:
Noncovered under FDIC loss share agreements 901 965 974 1,097 276 (64) 625
Covered under FDIC loss share agreements 37,536 46,222 51,651 52,345 47,401 (8,686) (9,865)
Premises and equipment, net 34,592 33,318 33,988 34,856 35,379 1,274 (787)
Goodwill 10,381 10,381 10,381 10,381 10,381 -- --
Other intangibles, net 1,824 1,986 2,150 2,449 2,819 (162) (995)
FDIC receivable for loss share agreements, net 65,248 103,160 156,549 210,557 258,848 (37,912) (193,600)
Other assets 77,232 71,075 62,101 64,023 60,619 6,157 16,613
Total assets $ 2,617,378 $ 2,600,705 $ 2,527,101 $ 2,607,697 $ 2,641,306 $ 16,673 $ (23,928)
Liabilities and Shareholders' Equity
Noninterest-bearing deposits $ 471,414 $ 468,138 $ 420,269 $ 429,960 $ 409,717 $ 3,276 $ 61,697
Interest-bearing deposits 1,669,647 1,660,187 1,629,642 1,696,124 1,738,473 9,460 (68,826)
Total deposits 2,141,061 2,128,325 2,049,911 2,126,084 2,148,190 12,736 (7,129)
Securities sold under agreements to repurchase 1,216 1,082 3,576 3,959 (1,216) (3,959)
Notes payable 4,371 5,682 5,690 5,698 3,861 (1,311) 510
Other liabilities 30,507 28,299 41,825 46,413 58,360 2,208 (27,853)
Total liabilities 2,175,939 2,163,522 2,098,508 2,181,771 2,214,370 12,417 (38,431)
Total shareholders' equity 441,439 437,183 428,593 425,926 426,936 4,256 14,503
Total liabilities and shareholders' equity $ 2,617,378 $ 2,600,705 $ 2,527,101 $ 2,607,697 $ 2,641,306 $ 16,673 $ (23,928)
Capital Ratios
Average equity to average assets 17.05% 16.78% 16.68% 16.16% 16.35 .27 .70%
Leverage ratio 16.67 16.55 16.20 15.57 15.51 .12 1.16
Tier I risk-based capital ratio 27.00 27.85 26.18 25.88 28.17 (.65) (.97)
Total risk-based capital ratio 28.47 29.11 27.44 27.14 29.45 (.64) (.98)
State Bank Financial Corporation
1Q14 Financial Supplement: Table 3
Condensed Consolidated Income Statements
Quarterly (Unaudited)
1Q14 Change vs.
(Dollars in thousands, except per share data) 1Q14 4Q13 3Q13 2Q13 1Q13 4Q13 1Q13
Total interest income on invested funds $ 2,493 $ 2,416 $ 2,587 $ 2,693 $ 2,502 $ 77 $ (9)
Interest income on noncovered loans, including fees 15,275 15,861 15,800 15,141 14,374 (586) 901
Accretion income on covered loans 26,536 48,065 27,978 25,787 20,636 (21,529) 5,900
Total interest expense 1,894 1,961 1,981 1,995 1,996 (67) (102)
Net interest income 42,410 64,381 44,384 41,626 35,516 (21,971) 6,894
Provision for loan losses (noncovered loans) -- -- 905 665 350 -- (350)
Provision for loan losses (covered loans) 590 (98) (636) (1,288) (2,385) 688 2,975
Net interest income after provision for loan losses 41,820 64,479 44,115 42,249 37,551 (22,659) 4,269
Noninterest Income:
Amortization of FDIC receivable for loss share agreements (15,292) (31,372) (18,971) (20,762) (16,779) 16,080 1,487
Service charges on deposits 1,158 1,304 1,353 1,284 1,215 (146) (57)
Mortgage banking income 159 153 260 289 306 6 (147)
Gain on sale of investment securities 11 -- 717 -- 364 11 (353)
Payroll fee income 953 879 727 705 832 74 121
ATM income 590 604 604 635.00 605.00 (14) (15.00)
Bank-owned life insurance income 329 333 342 335 344 (4) (15)
Other (97) 682 468 976 455 (779) (552)
Total noninterest income (12,189) (27,417) (14,500) (16,538) (12,658) 15,228 469
Noninterest Expense:
Salaries and employee benefits 15,077 14,500 14,794 15,547 17,395 577 (2,318)
Occupancy and equipment 2,529 2,330 2,431 2,550 2,456 199 73
Legal and professional fees 1,014 1,154 954 1,280 1,601 (140) (587)
Marketing 332 369 457 350 328 (37) 4
Federal deposit insurance premiums and other regulatory fees 334 303 939 604 469 31 (135)
Loan collection and OREO costs 624 733 374 1,944 1,288 (109) (664)
Data processing 1,672 1,595 1,551 1,504 1,437 77 235
Amortization of intangibles 162 164 299 369 370 (2) (208)
Other 1,339 1,570 1,325 1,313 1,320 (231) 19
Total noninterest expense 23,083 22,718 23,124 25,461 26,664 365 (3,581)
Income (Loss) Before Income Taxes 6,548 14,344 6,491 250 (1,771) (7,796) 8,319
Income tax expense (benefit) 2,226 4,927 2,142 113 (615) (2,701) 2,841
Net Income (Loss) $ 4,322 $ 9,417 $ 4,349 $ 137 $ (1,156) $ (5,095) $ 5,478
Basic Net Income (Loss) Per Share $ .13 $ .29 $ .14 $ -- $ (.04) $ (.16) $ .17
Diluted Net Income (Loss) Per Share .13 .28 .13 -- (.04) (.15) .17
Weighted Average Shares Outstanding:
Basic 32,094,473 32,086,781 31,998,901 31,918,677 31,908,776 7,692 185,697
Diluted 33,644,135 33,519,550 33,296,650 33,124,681 31,908,776 124,585 1,735,359
State Bank Financial Corporation
1Q14 Financial Supplement: Table 4
Condensed Consolidated Composition of Loans and Deposits at Period Ends
Quarterly (Unaudited)
1Q14 Change vs.
(Dollars in thousands) 1Q14 4Q13 3Q13 2Q13 1Q13 4Q13 1Q13
Composition of Loans
Noncovered loans:
Construction, land & land development $ 259,488 $ 251,043 $ 285,855 $ 295,756 $ 265,055 $ 8,445 $ (5,567)
Other commercial real estate 593,260 550,474 552,579 508,620 486,287 42,786 106,973
Total commercial real estate 852,748 801,517 838,434 804,376 751,342 51,231 101,406
Commercial & industrial 28,140 30,145 27,573 33,908 35,944 (2,005) (7,804)
Owner-occupied real estate 171,221 174,858 181,882 186,652 176,426 (3,637) (5,205)
Total commercial & industrial 199,361 205,003 209,455 220,560 212,370 (5,642) (13,009)
Residential real estate 67,896 66,835 63,386 53,962 45,433 1,061 22,463
Consumer & other 46,908 50,120 53,579 44,224 42,310 (3,212) 4,598
Total noncovered loans 1,166,913 1,123,475 1,164,854 1,123,122 1,051,455 43,438 115,458
Covered loans:
Construction, land & land development 30,770 35,383 40,268 51,660 58,802 (4,613) (28,032)
Other commercial real estate 65,599 67,573 77,040 91,246 115,194 (1,974) (49,595)
Total commercial real estate 96,369 102,956 117,308 142,906 173,996 (6,587) (77,627)
Commercial & industrial 4,216 4,271 6,378 8,059 10,811 (55) (6,595)
Owner-occupied real estate 52,791 54,436 55,723 67,568 80,239 (1,645) (27,448)
Total commercial & industrial 57,007 58,707 62,101 75,627 91,050 (1,700) (34,043)
Residential real estate 92,509 95,240 109,806 114,036 131,254 (2,731) (38,745)
Consumer & other 394 591 862 1,114 531 (197) (137)
Total covered loans 246,279 257,494 290,077 333,683 396,831 (11,215) (150,552)
Total loans $ 1,413,192 $ 1,380,969 $ 1,454,931 $ 1,456,805 $ 1,448,286 $ 32,223 $ (35,094)
Composition of Deposits
Noninterest-bearing demand deposits $ 471,414 $ 468,138 $ 420,269 $ 429,960 $ 409,717 $ 3,276 $ 61,697
Interest-bearing transaction accounts 382,697 367,983 304,085 351,289 333,336 14,714 49,361
Savings and money market deposits 903,198 892,136 908,410 911,415 959,912 11,062 (56,714)
Time deposits less than $100,000 162,002 168,611 177,634 186,874 194,098 (6,609) (32,096)
Time deposits $100,000 or greater 116,858 124,827 132,538 139,671 144,501 (7,969) (27,643)
Brokered and wholesale time deposits 104,892 106,630 106,975 106,875 106,626 (1,738) (1,734)
Total deposits $ 2,141,061 $ 2,128,325 $ 2,049,911 $ 2,126,084 $ 2,148,190 $ 12,736 $ (7,129)
State Bank Financial Corporation
1Q14 Financial Supplement: Table 5
Condensed Consolidated Asset Quality Data
Quarterly (Unaudited)
1Q14 Change vs.
(Dollars in thousands) 1Q14 4Q13 3Q13 2Q13 1Q13 4Q13 1Q13
Nonperforming noncovered assets:
Nonaccrual loans $ 1,265 $ 1,396 $ 1,978 $ 2,704 $ 3,424 $ (131) $ (2,159)
Troubled debt restructurings 866 869 876 890 884 (3) (18)
Total nonperforming noncovered loans 2,131 2,265 2,854 3,594 4,308 (134) (2,177)
Other real estate owned 901 965 974 1,097 276 (64) 625
Total nonperforming noncovered assets 3,032 3,230 3,828 4,691 4,584 (198) (1,552)
Nonperforming covered assets:
Other real estate owned (1) $ 37,536 $ 46,222 $ 51,651 $ 52,345 $ 47,401 $ (8,686) $ (9,865)
Noncovered assets:
Charge-offs $ 136 $ 67 $ 330 $ 8 $ 12 $ 69 $ 124
Recoveries 338 296 47 26 124 42 214
Net (recoveries) charge-offs $ (202) $ (229) $ 283 $ (18) $ (112) $ 27 $ (90)
Ratios:
Annualized QTD net (recoveries) charge-offs to total average noncovered loans (.07)% (.08)% .10% (.01)% (.05)% .01% (.02)%
Nonperforming loans to total noncovered loans (2) .18 .20 .25 .32 .41 (.02) (.23)
Nonperforming assets to loans + ORE:
Noncovered .26 .29 .33 .42 .44 (.03) (.18)
Covered 13.23 15.22 15.11 13.56 10.67 (1.99) 2.56
Allowance for loan losses to loans:
Noncovered 1.44 1.48 1.41 1.41 1.44 (.04) --
Covered 7.79 6.76 4.16 5.28 7.23 1.03 .56
(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 loans to total loans is disclosed for noncovered loans only because there are no covered loans designated as nonperforming.
State Bank Financial Corporation
1Q14 Financial Supplement: Table 6
Condensed Consolidated Average Balances and Yield Analysis
Quarterly (Unaudited)
1Q14 Change vs.
(Dollars in thousands) 1Q14 4Q13 3Q13 2Q13 1Q13 4Q13 1Q13
Selected Average Balances
Interest-bearing deposits in other financial institutions $ 518,362 $ 489,046 $ 398,391 $ 465,823 $ 447,929 $ 29,316 $ 70,433
Taxable investment securities 425,158 374,416 369,485 352,955 314,510 50,742 110,648
Nontaxable investment securities 5,538 5,559 5,836 6,436 7,089 (21) (1,551)
Noncovered loans receivable (1) 1,133,802 1,144,116 1,140,052 1,083,549 1,007,094 (10,314) 126,708
Covered loans receivable 250,824 258,600 305,487 351,955 419,204 (7,776) (168,380)
Total earning assets 2,333,684 2,271,737 2,219,251 2,260,718 2,195,826 61,947 137,858
Total nonearning assets 241,532 287,988 342,551 383,523 431,215 (46,456) (189,683)
Total assets 2,575,216 2,559,725 2,561,802 2,644,241 2,627,041 15,491 (51,825)
Interest-bearing transaction accounts 357,988 338,502 320,168 360,221 324,342 19,486 33,646
Savings & money market deposits 894,994 909,999 908,275 936,819 956,517 (15,005) (61,523)
Time deposits less than $100,000 165,158 173,061 181,865 190,795 197,893 (7,903) (32,735)
Time deposits $100,000 or greater 122,217 129,384 137,147 142,364 145,329 (7,167) (23,112)
Brokered and wholesale time deposits 106,555 106,676 106,918 106,818 106,641 (121) (86)
Notes payable 5,212 5,686 5,695 5,026 2,536 (474) 2,676
Securities sold under agreements to repurchase 727 675 2,438 5,083 3,388 52 (2,661)
Total interest-bearing liabilities 1,652,851 1,663,983 1,662,506 1,747,126 1,736,646 (11,132) (83,795)
Noninterest-bearing deposits 441,875 431,580 422,797 410,636 384,660 10,295 57,215
Other liabilities 41,385 34,668 49,287 59,240 76,149 6,717 (34,764)
Shareholders' equity 439,105 429,494 427,212 427,239 429,586 9,611 9,519
Total liabilities and shareholders' equity 2,575,216 2,559,725 2,561,802 2,644,241 2,627,041 15,491 (51,825)
Interest Margins (2)
Interest-earning deposits in other financial institutions .27% .27% .31% .27% .23% --% .04%
Taxable investment securities 2.03 2.19 2.42 2.68 2.86 (.16) (.83)
Nontaxable investment securities, tax equivalent basis (3) 2.34 2.28 2.31 2.31 2.75 .06 (.41)
Noncovered loans receivable, tax-equivalent basis (4) 5.49 5.53 5.52 5.63 5.82 (.04) (.33)
Covered loans receivable 42.91 73.74 36.34 29.39 19.96 (30.83) 22.95
Total earning assets 7.71% 11.60% 8.30% 7.75% 6.94% (3.89)% .77%
Interest-bearing transaction accounts .12 .11 .11 .10 .12 .01 --
Savings & money market deposits .44 .43 .42 .42 .43 .01 .01
Time deposits less than $100,000 .54 .55 .57 .59 .59 (.01) (.05)
Time deposits $100,000 or greater .69 .67 .71 .72 .74 .02 (.05)
Brokered and wholesale time deposits .93 .93 .93 .93 .93 -- --
Notes payable 11.52 11.44 11.49 10.77 12.79 .08 (1.27)
Securities sold under agreements to repurchase -- -- .16 .08 .12 -- (.12)
Total interest-bearing liabilities .46 .47 .47 .46 .47 (.01) (.01)
Net interest spread 7.25 11.13 7.83 7.29 6.47 (3.88) .78
Net interest margin 7.38% 11.26% 7.95% 7.40% 6.58% (3.88)% .80%
(1) The above amount includes nonaccrual loans of $2,098 for 1Q14, $2,642 for 4Q13, $2,371 for 3Q13, $4,136 for 2Q13, and $3,980 for 1Q13.
(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 fully taxable basis. The taxable equivalent adjustments included above amount to $11 for 1Q14, $11 for 4Q13, $12 for 3Q13, $13 for 2Q13, and $17 for 1Q13.
(4) Reflects taxable equivalent adjustments using the statutory tax rate of 35% in adjusting tax-exempt loan interest income to fully taxable basis. The taxable equivalent adjustments included above amount to $65 for 1Q14, $97 for 4Q13, $72 for 3Q13, $73 for 2Q13, and $69 for 1Q13.

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

Source:State Bank Financial Corporation