State Bank Financial Corporation Reports Full Year and Fourth Quarter 2014 Financial Results

  • Full year 2014 net income of $30.9 million, or $.92 per diluted share
  • Organic loan growth of $197 million, or 17.5%, for full year 2014
  • Continued growth in transaction account balances and treasury services
  • Merger, conversion and integration of Bank of Atlanta successfully completed

ATLANTA, Jan. 29, 2015 (GLOBE NEWSWIRE) -- State Bank Financial Corporation (Nasdaq:STBZ) today announced unaudited financial results for the full year and fourth quarter ended December 31, 2014. Full year net income for 2014 was $30.9 million, compared to $12.7 million for full year 2013. Net income for the fourth quarter of 2014 was $7.6 million, compared to $9.4 million for the fourth quarter of 2013 and $11.5 million for the third quarter of 2014. Fully diluted earnings per share were $.92 for full year 2014 compared to $.38 for full year 2013. Fully diluted earnings per share were $.22 in the fourth quarter of 2014 compared to $.28 in the fourth quarter of 2013 and $.34 in the third quarter of 2014.

Joe Evans, Chairman and CEO, commented, "The fourth quarter of 2014 was a solid finish to a very successful year marked by strong growth in loans and transaction deposits, excellent credit metrics and the acquisition of two healthy banks. We were also pleased to see the fifth anniversaries of our largest loss share acquisitions pass uneventfully. The momentum and pipelines we have going into 2015 cause me to be very optimistic about what lies ahead."

Operating Highlights

Net interest income was $32.5 million in the fourth quarter of 2014, down from $38.0 million in the third quarter of 2014. A $7.0 million decline in accretion income offset $1.3 million in growth in interest income, resulting in the decline in net interest income. Accretion income on loans was $14.1 million in the fourth quarter of 2014, down from $21.1 million in the third quarter of 2014. The higher accretion income in the previous quarter was due primarily to timing of gains from purchased loan pools closing out in the third quarter of 2014. Interest income on loans, excluding purchased credit impaired ("PCI") loans, for the fourth quarter of 2014 was $17.4 million, up from $16.2 million in the prior quarter. Interest expense of $1.9 million in the fourth quarter of 2014 was essentially flat with the prior quarter and prior year period. Cost of funds for the fourth quarter of 2014 was 33 basis points, down two basis points from the prior quarter and four basis points from the prior year period.

The organic loan portfolio continued to perform well in the fourth quarter of 2014 as past due loans represented 17 basis points of total organic loans. The provision for loan losses was $1.2 million in the fourth quarter of 2014 and was primarily attributable to organic loan growth in the quarter.

Noninterest income, excluding accretion/(amortization) of the FDIC receivable for loss share agreements (which we refer to as the indemnification asset), was $5.3 million for the fourth quarter of 2014, up from $3.6 million in the third quarter of 2014 due primarily to higher prepayment fees on loans, SBA income and payroll fee income.

Total noninterest income for the fourth quarter of 2014, which includes accretion/(amortization) of the indemnification asset, was $6.9 million, compared to $3.4 million in the third quarter of 2014. We recognized accretion of the indemnification asset of $1.7 million in the fourth quarter of 2014, as opposed to amortization of the indemnification asset in prior quarters. Upon expiration of the two commercial loss share agreements in the fourth quarter, it became apparent that our actual collections would exceed our estimated collections, thereby reducing the reserve allocated for disallowed claims resulting in the reversal to accretion from amortization of the indemnification asset.

Total noninterest expense for the fourth quarter of 2014 was $25.8 million, a $3.3 million increase from the third quarter of 2014 due primarily to higher salary and benefit costs. Approximately $1.5 million of the $3.2 million linked-quarter increase in salary and benefit cost was due to severance costs related to executive management realignment and headcount reductions. The staff reductions have been partially offset by additional personnel in mortgage, SBA and payroll growth initiatives. Additionally, $1.1 million of the quarterly increase was related to increased headcount and retention payments from the Bank of Atlanta merger. Personnel cost savings of approximately $315 thousand related to staff reductions following the conversion of Bank of Atlanta will be largely recognized in the first quarter of 2015. Additionally, merger-related expenses for the fourth quarter and full year 2014 totaled $306 thousand and $795 thousand, respectively.

Financial Condition

Total assets at December 31, 2014 were $2.88 billion, up from $2.65 billion at September 30, 2014 and $2.61 billion at December 31, 2013. Total net loans were $1.61 billion at December 31, 2014, up $128.4 million from the third quarter of 2014 primarily due to a $116.0 million increase related to our acquisition of Bank of Atlanta.

Period-end organic loans increased to $1.32 billion at December 31, 2014, a net increase of $28.5 million from the third quarter of 2014 and $196.9 million from year-end 2013. Period-end organic loans comprised 87.4% of total gross loans at December 31, 2014. Purchased non-credit impaired loans from Bank of Atlanta totaled $107.8 million at year-end 2014. Purchased credit impaired loans decreased to $206.3 million and included $8.2 million of PCI loans from our acquisition of Bank of Atlanta.

Total deposits at December 31, 2014 were $2.39 billion, up from $2.16 billion at the end of the third quarter of 2014 and $2.13 billion at the end of the fourth quarter of 2013. Period-end noninterest-bearing demand deposits and interest-bearing transaction accounts, which make up total transaction accounts, increased $171.4 million from the third quarter of 2014, inclusive of $39.4 million of transaction deposits acquired from Bank of Atlanta. Period-end noninterest-bearing demand deposits increased $52.7 million from the third quarter of 2014, inclusive of $32.2 million of noninterest-bearing deposits acquired from Bank of Atlanta. Period-end noninterest-bearing demand deposits represented 24.1% of total deposits as of December 31, 2014. Average noninterest-bearing demand deposits, which increased for the eleventh consecutive quarter, were up $33.6 million from the third quarter of 2014, excluding average noninterest-bearing deposits from Bank of Atlanta.

Tangible book value per share was $13.97 at the end of the fourth quarter of 2014. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 15.90% and a Tier I risk-based capital ratio of 23.12%.

Subsequent Event

On January 1, 2015, State Bank Financial Corporation completed its previously announced merger with Georgia-Carolina Bancshares, Inc., the holding company for First Bank of Georgia. At December 31, 2014, First Bank of Georgia had approximately $517 million of total assets, $334 million of loans, $417 million of deposits and seven banking offices in the Augusta, Georgia market.

Detailed Results

Supplemental tables displaying financial results for the fourth quarter of 2014, the previous four quarters and full year 2014 are included with this press release.

Conference Call

State Bank Chief Executive Officer Joe Evans, Chief Financial Officer Sheila Ray and Executive Risk Officer Kim Childers will discuss financial and business results for the quarter and the year on a conference call today at 10:00 a.m. EST. The dial in number is 1.800.684.5780. 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) is an Atlanta-based bank holding company for State Bank and Trust Company and First Bank of Georgia. State Bank operates 21 banking offices in Metro Atlanta and Middle Georgia. First Bank of Georgia operates seven banking offices and four mortgage origination offices in the Augusta and Savannah, Georgia MSAs.

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. Forward-looking statements can be identified by words such as: "intend," "plan," "seek," "believe," "expect," "strategy," "future," "likely," "project," "may," "should," "will" and similar references to future periods. Examples of forward-looking statements include, among others, statements related to our momentum and pipeline going into 2015, our 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 and the expected personnel cost savings related to staff reductions and the conversion of Bank of Atlanta. 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 acquisitions, 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 most recently ended fiscal year, for a description of some of the important factors that may affect actual outcomes.

State Bank Financial Corporation
4Q14 Financial Supplement: Table 1
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
4Q14 change vs
(Dollars in thousands, except per share amounts) 4Q14 3Q14 2Q14 1Q14 4Q13 3Q14 4Q13
Income Statement Highlights
Interest income on invested funds $ 2,928 $ 2,545 $ 2,522 $ 2,493 $ 2,416 $ 383 $ 512
Interest income on loans 17,416 16,162 15,350 15,248 15,826 1,254 1,590
Accretion income on loans 14,124 21,110 17,087 26,536 48,065 (6,986) (33,941)
Interest expense 1,923 1,857 1,846 1,894 1,961 66 (38)
Net interest income 32,545 37,960 33,113 42,383 64,346 (5,415) (31,801)
Provision for (recovery of) loan losses 1,189 416 701 590 (98) 773 1,287
Accretion (amortization) of FDIC receivable for loss share agreements 1,652 (196) (1,949) (15,292) (31,372) 1,848 33,024
Other noninterest income 5,285 3,624 3,348 3,130 3,990 1,661 1,295
Noninterest expense 25,799 22,510 22,076 23,083 22,718 3,289 3,081
Income before income taxes 12,494 18,462 11,735 6,548 14,344 (5,968) (1,850)
Income tax expense 4,909 6,958 4,228 2,226 4,927 (2,049) (18)
Net income $ 7,585 $ 11,504 $ 7,507 $ 4,322 $ 9,417 $ (3,919) $ (1,832)
Common Share Data
Basic net income per share $ .24 $ .36 $ .23 $ .13 $ .29 $ (.12) $ (.05)
Diluted net income per share .22 .34 .22 .13 .28 (.12) (.06)
Cash dividends declared per share .04 .04 .04 .03 .03 .01
Book value per share 14.38 14.20 13.95 13.74 13.62 .18 .76
Tangible book value per share 13.97 13.83 13.58 13.36 13.24 .14 .73
Market price per share 19.98 16.24 16.91 17.69 18.19 3.74 1.79
Average Balance Sheet Highlights
Loans, excluding purchased credit impaired $ 1,430,495 $ 1,246,008 $ 1,192,494 $ 1,133,802 $ 1,144,116 $ 184,487 $ 286,379
Purchased credit impaired loans 214,518 215,318 236,178 250,824 258,600 (800) (44,082)
Assets 2,858,209 2,609,776 2,591,025 2,579,904 2,564,205 248,433 294,004
Deposits 2,339,566 2,125,659 2,108,595 2,088,787 2,089,202 213,907 250,364
Equity 461,137 448,982 444,175 439,105 429,494 12,155 31,643
Tangible common equity 447,641 437,038 432,073 426,828 417,030 10,603 30,611
Key Metrics
Return on average assets (1) 1.05% 1.75% 1.16% .68% 1.46% (.70)% (.41)%
Return on average equity (1) 6.53 10.17 6.78 3.99 8.70 (3.64) (2.17)
Yield on earning assets (2) 5.08 6.44 5.86 7.71 11.60 (1.36) (6.52)
Cost of funds (2) .33 .35 .35 .37 .37 (.02) (.04)
Rate on interest-bearing liabilities .43 .45 .45 .46 .47 (.45) (.47)
Net interest margin (2) 4.80 6.14 5.55 7.38 11.26 (1.34) (6.46)
Average equity to average assets 16.13 17.20 17.14 17.02 16.75 (1.07) (.62)
Leverage ratio 15.90 17.16 16.84 16.67 16.55 (1.26) (.65)
Tier I risk-based capital ratio 23.12 25.17 27.06 27.20 27.85 (2.05) (4.73)
Efficiency ratio (2) 65.20 54.28 63.82 76.19 61.28 10.92 3.92
Average loans to average deposits 70.31 68.75 67.75 66.29 67.14 1.56 3.17
Noninterest-bearing deposits to total deposits 24.14 24.33 21.82 22.02 22.00 (.19) 2.14
(1) Net income annualized for the applicable period.
(2) Interest income annualized for the applicable period and calculated on a fully tax-equivalent basis.
State Bank Financial Corporation
4Q14 Financial Supplement: Table 2
Condensed Consolidated Balance Sheets
Quarterly (Unaudited)
4Q14 change vs
(Dollars in thousands) 4Q14 3Q14 2Q14 1Q14 4Q13 3Q14 4Q13
Assets
Cash and amounts due from depository institutions $ 10,550 $ 17,209 $ 8,333 $ 7,314 $ 8,518 $ (6,659) $ 2,032
Interest-bearing deposits in other financial institutions 470,608 459,271 499,400 549,593 590,231 11,337 (119,623)
Cash and cash equivalents 481,158 476,480 507,733 556,907 598,749 4,678 (117,591)
Investment securities available-for-sale 640,086 532,447 494,874 454,053 387,048 107,639 253,038
Loans receivable (1) 1,634,529 1,504,725 1,441,606 1,413,192 1,380,969 129,804 253,560
Allowance for loan losses (2) (28,638) (27,231) (35,607) (36,040) (34,065) (1,407) 5,427
Net loans 1,605,891 1,477,494 1,405,999 1,377,152 1,346,904 128,397 258,987
Mortgage loans held for sale 3,174 1,283 726 1,552 897 1,891 2,277
Other real estate owned (3) 8,568 15,169 23,938 38,437 47,187 (6,601) (38,619)
Premises and equipment, net 35,286 34,696 34,820 34,592 33,318 590 1,968
Goodwill 10,606 10,381 10,381 10,381 10,381 225 225
Other intangibles, net 2,752 1,511 1,663 1,824 1,986 1,241 766
SBA servicing rights 1,516 1,516 1,516
FDIC receivable for loss share agreements, net 22,320 26,221 44,775 70,361 107,843 (3,901) (85,523)
Bank owned life insurance 41,479 41,136 40,803 40,474 40,145 343 1,334
Other assets 29,374 30,779 20,093 36,758 30,930 (1,405) (1,556)
Total assets $ 2,882,210 $ 2,647,597 $ 2,585,805 $ 2,622,491 $ 2,605,388 $ 234,613 $ 276,822
Liabilities and Shareholders' Equity
Noninterest-bearing deposits $ 577,295 $ 524,634 $ 461,434 $ 471,414 $ 468,138 $ 52,661 $ 109,157
Interest-bearing deposits 1,814,387 1,631,340 1,653,779 1,669,647 1,660,187 183,047 154,200
Total deposits 2,391,682 2,155,974 2,115,213 2,141,061 2,128,325 235,708 263,357
Securities sold under agreements to repurchase 1,216 (1,216)
Notes payable 2,771 2,776 2,779 4,371 5,682 (5) (2,911)
Other liabilities 23,662 30,570 19,506 35,620 32,982 (6,908) (9,320)
Total liabilities 2,418,115 2,189,320 2,137,498 2,181,052 2,168,205 228,795 249,910
Total shareholders' equity 464,095 458,277 448,307 441,439 437,183 5,818 26,912
Total liabilities and shareholders' equity $ 2,882,210 $ 2,647,597 $ 2,585,805 $ 2,622,491 $ 2,605,388 $ 234,613 $ 276,822
Capital Ratios
Average equity to average assets 16.13% 17.20% 17.14% 17.02% 16.75% (1.07)% (.62)%
Leverage ratio 15.90 17.16 16.84 16.67 16.55 (1.26) (.65)
Tier I risk-based capital ratio 23.12 25.17 27.06 27.20 27.85 (2.05) (4.73)
Total risk-based capital ratio 24.37 26.42 28.32 28.47 29.11 (2.05) (4.74)
Shares Issued and Outstanding
Common stock 32,269,604 32,271,466 32,130,645 32,123,645 32,094,145 (1,862) 175,459
(1) Loans covered by loss share agreements with the FDIC were approximately $99.5 million at 4Q14, $114.2 million at 3Q14, $211.3 million at 2Q14, $246.3 million at 1Q14 and $257.5 million at 4Q13.
(2) Allowance for loan losses on purchased credit impaired loans was approximately $10.2 million at 4Q14, $8.4 million at 3Q14, $17.7 million at 2Q14, $19.2 million at 1Q14 and $17.4 million at 4Q13.
(3) Other real estate owned covered by loss share agreements with the FDIC was approximately $3.3 million at 4Q14, $11.2 million at 3Q14, $23.2 million at 2Q14, $37.5 million at 1Q14 and $46.2 million at 4Q13.
State Bank Financial Corporation
4Q14 Financial Supplement: Table 3
Condensed Consolidated Income Statements
Quarterly (Unaudited)
4Q14 change vs
(Dollars in thousands, except per share amounts) 4Q14 3Q14 2Q14 1Q14 4Q13 3Q14 4Q13
Net Interest Income:
Interest income on invested funds $ 2,928 $ 2,545 $ 2,522 $ 2,493 $ 2,416 $ 383 $ 512
Interest income on loans 17,416 16,162 15,350 15,248 15,826 1,254 1,590
Accretion income on loans 14,124 21,110 17,087 26,536 48,065 (6,986) (33,941)
Interest expense 1,923 1,857 1,846 1,894 1,961 66 (38)
Net interest income 32,545 37,960 33,113 42,383 64,346 (5,415) (31,801)
Provision for (recovery of) loan losses 1,189 416 701 590 (98) 773 1,287
Net interest income after provision for (recovery of) loan losses 31,356 37,544 32,412 41,793 64,444 (6,188) (33,088)
Noninterest Income:
Accretion (amortization) of FDIC receivable for loss share agreements 1,652 (196) (1,949) (15,292) (31,372) 1,848 33,024
Service charges on deposits 1,274 1,206 1,196 1,158 1,304 68 (30)
Mortgage banking income 322 191 163 159 153 131 169
Gain on sale of investment securities 223 12 11 223 223
Payroll fee income 1,050 875 822 953 879 175 171
ATM income 624 621 636 590 604 3 20
Bank-owned life insurance income 343 333 329 329 333 10 10
SBA income 392 27 31 27 35 365 357
Other 1,057 371 159 (97) 682 686 375
Total noninterest income 6,937 3,428 1,399 (12,162) (27,382) 3,509 34,319
Noninterest Expense:
Salaries and employee benefits 17,797 14,644 14,575 15,077 14,500 3,153 3,297
Occupancy and equipment 2,615 2,440 2,314 2,529 2,330 175 285
Data processing 1,909 1,758 1,714 1,672 1,595 151 314
Legal and professional fees 844 851 731 1,014 1,154 (7) (310)
Marketing 491 453 548 332 369 38 122
Federal deposit insurance premiums and other regulatory fees 393 356 337 334 303 37 90
Loan collection and OREO costs (112) (32) 624 733 (112) (845)
Amortization of intangibles 257 152 161 162 164 105 93
Other 1,605 1,856 1,728 1,339 1,570 (251) 35
Total noninterest expense 25,799 22,510 22,076 23,083 22,718 3,289 3,081
Income Before Income Taxes 12,494 18,462 11,735 6,548 14,344 (5,968) (1,850)
Income tax expense 4,909 6,958 4,228 2,226 4,927 (2,049) (18)
Net Income $ 7,585 $ 11,504 $ 7,507 $ 4,322 $ 9,417 $ (3,919) $ (1,832)
Net Income Per Share
Basic $ .24 $ .36 $ .23 $ .13 $ .29 $ (.12) $ (.05)
Diluted .22 .34 .22 .13 .28 (.12) (.06)
Weighted Average Shares Outstanding
Basic 32,271,537 32,206,889 32,126,260 32,094,473 32,086,781 64,648 184,756
Diluted 33,935,366 33,755,595 33,589,797 33,644,135 33,519,550 179,771 415,816
State Bank Financial Corporation
4Q14 Financial Supplement: Table 4
Condensed Consolidated Income Statements
Year to Date (Unaudited)
Years Ended December 31
(Dollars in thousands, except per share amounts) 2014 2013 YTD Change
Net Interest Income:
Interest income on invested funds $ 10,488 $ 10,198 $ 290
Interest income on loans 64,176 61,010 3,166
Accretion income on loans 78,857 122,466 (43,609)
Interest expense 7,520 7,933 (413)
Net interest income 146,001 185,741 (39,740)
Provision for (recovery of) loan losses 2,896 (2,487) 5,383
Net interest income after provision for (recovery of) loan losses 143,105 188,228 (45,123)
Noninterest Income:
Amortization of FDIC receivable for loss share agreements (15,785) (87,884) 72,099
Service charges on deposits 4,834 5,156 (322)
Mortgage banking income 835 1,008 (173)
Gain on sale of investment securities 246 1,081 (835)
Payroll fee income 3,700 3,143 557
ATM income 2,471 2,448 23
Bank-owned life insurance income 1,334 1,354 (20)
SBA income 477 166 311
Other 1,490 2,581 (1,091)
Total noninterest income (398) (70,947) 70,549
Noninterest Expense:
Salaries and employee benefits 62,093 62,236 (143)
Occupancy and equipment 9,898 9,767 131
Data processing 7,053 6,087 966
Legal and professional fees 3,440 4,989 (1,549)
Marketing 1,824 1,504 320
Federal insurance premiums and other regulatory fees 1,420 2,315 (895)
Loan collection and OREO costs 480 4,339 (3,859)
Amortization of intangibles 732 1,202 (470)
Other 6,528 5,528 1,000
Total noninterest expense 93,468 97,967 (4,499)
Income Before Income Taxes 49,239 19,314 29,925
Income tax expense 18,321 6,567 11,754
Net Income $ 30,918 $ 12,747 $ 18,171
Net Income Per Share
Basic $ .96 $ .40 $ .56
Diluted .92 .38 .54
Weighted Average Shares Outstanding
Basic 32,175,363 31,978,844 196,519
Diluted 33,736,352 33,290,565 445,787
State Bank Financial Corporation
4Q14 Financial Supplement: Table 5
Condensed Consolidated Composition of Loans and Deposits at Period Ends
Quarterly (Unaudited)
4Q14 change vs
(Dollars in thousands) 4Q14 3Q14 2Q14 1Q14 4Q13 3Q14 4Q13
Composition of Loans
Organic loans:
Construction, land & land development $ 310,987 $ 324,008 $ 271,525 $ 259,488 $ 251,043 $ (13,021) $ 59,944
Other commercial real estate 609,478 591,672 616,418 593,260 550,474 17,806 59,004
Total commercial real estate 920,465 915,680 887,943 852,748 801,517 4,785 118,948
Residential real estate 91,448 80,231 75,683 67,896 66,835 11,217 24,613
Owner-occupied real estate 188,933 164,514 167,129 171,221 174,858 24,419 14,075
Commercial, financial & agricultural 90,930 102,417 91,552 66,728 71,006 (11,487) 19,924
Lease financing 19,959 19,636 323 19,959
Consumer 8,658 9,445 7,997 8,320 9,259 (787) (601)
Total organic loans 1,320,393 1,291,923 1,230,304 1,166,913 1,123,475 28,470 196,918
Purchased non-credit impaired loans(1):
Construction, land & land development 2,166 2,166 2,166
Other commercial real estate 26,793 26,793 26,793
Total commercial real estate 28,959 28,959 28,959
Residential real estate 43,669 43,669 43,669
Owner-occupied real estate 22,743 22,743 22,743
Commercial, financial & agricultural 11,635 11,635 11,635
Consumer 791 791 791
Total purchased non-credit impaired loans 107,797 107,797 107,797
Purchased credit impaired loans:
Construction, land & land development 24,544 25,463 23,851 30,770 35,383 (919) (10,839)
Other commercial real estate 58,680 54,573 54,212 65,599 67,573 4,107 (8,893)
Total commercial real estate 83,224 80,036 78,063 96,369 102,956 3,188 (19,732)
Residential real estate 78,793 80,859 86,371 92,509 95,240 (2,066) (16,447)
Owner-occupied real estate 42,168 48,834 43,409 52,791 54,436 (6,666) (12,268)
Commercial, financial & agricultural 1,953 2,790 3,081 4,228 4,289 (837) (2,336)
Consumer 201 283 378 382 573 (82) (372)
Total purchased credit impaired loans 206,339 212,802 211,302 246,279 257,494 (6,463) (51,155)
Total loans $ 1,634,529 $ 1,504,725 $ 1,441,606 $ 1,413,192 $ 1,380,969 $ 129,804 $ 253,560
Composition of Deposits
Noninterest-bearing demand deposits $ 577,295 $ 524,634 $ 461,434 $ 471,414 $ 468,138 $ 52,661 $ 109,157
Interest-bearing transaction accounts 495,966 377,220 387,855 382,697 367,983 118,746 127,983
Savings and money market deposits 954,626 910,488 898,833 903,198 892,136 44,138 62,490
Time deposits less than $100,000 147,462 147,420 155,918 162,002 168,611 42 (21,149)
Time deposits $100,000 or greater 119,241 107,143 112,705 116,858 124,827 12,098 (5,586)
Brokered and wholesale time deposits 97,092 89,069 98,468 104,892 106,630 8,023 (9,538)
Total deposits $ 2,391,682 $ 2,155,974 $ 2,115,213 $ 2,141,061 $ 2,128,325 $ 235,708 $ 263,357
(1) Consists of loans purchased in Bank of Atlanta acquisition.
State Bank Financial Corporation
4Q14 Financial Supplement: Table 6
Condensed Consolidated Organic Asset Quality Data
Quarterly (Unaudited)
4Q14 change vs
(Dollars in thousands) 4Q14 3Q14 2Q14 1Q14 4Q13 3Q14 4Q13
Nonperforming assets:
Nonaccrual loans $ 1,245 $ 740 $ 1,063 $ 1,265 $ 1,396 $ 505 $ (151)
Troubled debt restructurings 4,301 875 875 866 869 3,426 3,432
Total nonperforming organic loans 5,546 1,615 1,938 2,131 2,265 3,931 3,281
Other real estate owned 74 410 729 901 965 (336) (891)
Total nonperforming organic assets $ 5,620 $ 2,025 $ 2,667 $ 3,032 $ 3,230 $ 3,595 $ 2,390
Allowance for loan losses on loans:
Charge-offs $ 1,250 $ 87 $ 79 $ 136 $ 67 $ 1,163 $ 1,183
Recoveries 39 30 106 338 296 9 (257)
Net charge-offs (recoveries) $ 1,211 $ 57 $ (27) $ (202) $ (229) $ 1,154 $ 1,440
Ratios:
Annualized QTD charge-offs (recoveries) to total average loans .36% .02% (.01)% (.07)% (.08)% .34% .44%
Nonperforming loans to total loans .42 .13 .16 .18 .20 .29 .22
Nonperforming assets to loans + ORE .43 .16 .22 .26 .29 .27 .14
Past due loans to total loans .17 .10 .13 .14 .09 .07 .08
Allowance for loan losses to loans 1.39 1.46 1.45 1.44 1.48 (.07) (.09)
State Bank Financial Corporation
4Q14 Financial Supplement: Table 7
Condensed Consolidated Average Balances and Yield Analysis
Quarterly (Unaudited)
4Q14 change vs
(Dollars in thousands) 4Q14 3Q14 2Q14 1Q14 4Q13 3Q14 4Q13
Selected Average Balances
Interest-bearing deposits in other financial institutions $ 450,362 $ 476,190 $ 490,009 $ 518,362 $ 489,046 $ (25,828) $ (38,684)
Investment securities 603,101 523,488 481,240 430,696 379,975 79,613 223,126
Loans, excluding purchased credit impaired(1) 1,430,495 1,246,008 1,192,494 1,133,802 1,144,116 184,487 286,379
Purchased credit impaired loans 214,518 215,318 236,178 250,824 258,600 (215,318) (258,600)
Total earning assets 2,698,476 2,461,004 2,399,921 2,333,684 2,271,737 237,472 426,739
Total nonearning assets 159,733 148,772 191,104 246,220 292,468 10,961 (132,735)
Total assets 2,858,209 2,609,776 2,591,025 2,579,904 2,564,205 248,433 294,004
Interest-bearing transaction accounts 433,545 376,052 376,143 357,988 338,502 57,493 95,043
Savings & money market deposits 958,782 896,503 892,168 894,994 909,999 62,279 48,783
Time deposits less than $100,000 152,102 151,358 159,296 165,158 173,061 744 (20,959)
Time deposits $100,000 or greater 154,416 109,472 114,652 122,217 129,384 44,944 25,032
Brokered and wholesale time deposits 86,371 96,743 100,395 106,555 106,676 (10,372) (20,305)
Notes payable 2,775 2,778 3,365 5,212 5,686 (3) (2,911)
FHLB Advances 326 326 326
Securities sold under agreements to repurchase 4,284 727 675 4,284 3,609
Total interest-bearing liabilities 1,792,601 1,632,906 1,646,019 1,652,851 1,663,983 159,695 128,618
Noninterest-bearing deposits 554,350 495,531 465,941 441,875 431,580 58,819 122,770
Other liabilities 50,121 32,357 34,890 46,073 39,148 17,764 10,973
Shareholders' equity 461,137 448,982 444,175 439,105 429,494 12,155 31,643
Total liabilities and shareholders' equity 2,858,209 2,609,776 2,591,025 2,579,904 2,564,205 248,433 294,004
Interest Margins (2)
Interest-bearing deposits in other financial institutions .26% .26% .26% .27% .27% —% (.01)%
Investment securities, tax-equivalent basis(3) 1.73 1.70 1.84 2.03 2.19 .03 (.46)
Loans, excluding purchased credit impaired, tax-equivalent basis (4) 4.85 5.17 5.19 5.48 5.52 (.32) (.67)
Purchased credit impaired loans 26.12 38.90 29.02 42.91 73.74 (38.90) (73.74)
Total earning assets 5.08% 6.44% 5.86% 7.71% 11.60% (1.36)% (6.52)%
Interest-bearing transaction accounts .13 .13 .12 .12 .11 (.13) (.11)
Savings & money market deposits .46 .46 .45 .44 .43 (.46) (.43)
Time deposits less than $100,000 .50 .51 .53 .54 .55 (.51) (.55)
Time deposits $100,000 or greater .49 .63 .66 .69 .67 (.63) (.67)
Brokered and wholesale time deposits 1.02 1.08 .95 .93 .93 (1.08) (.93)
Notes payable 9.01 9.00 10.37 11.52 11.44 (9.00) (11.44)
FHLB Advances 1.22 1.22 1.22
Securities sold under agreements to repurchase .09
Total interest-bearing liabilities .43 .45 .45 .46 .47 (.45) (.47)
Net interest spread 4.65 5.99 5.41 7.25 11.13 (5.99) (11.13)
Net interest margin 4.80% 6.14% 5.55% 7.38% 11.26% (1.34)% (6.46)%
(1) Includes average nonaccrual loans of $5.6 million for 4Q14, $1.7 million for 3Q14, $2.0 million for 2Q14, $2.1 million for 1Q14, and $2.6 million for 4Q13.
(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 $4,000 for 4Q14, $7,000 for 3Q14, $11,000 for 2Q14, $11,000 for 1Q14, and $11,000 for 4Q13.
(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 $80,000 for 4Q14, $75,000 for 3Q14, $66,000 for 2Q14, $65,000 for 1Q14, and $97,000 for 4Q13.

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