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State Bank Financial Corporation Reports First Quarter 2015 Financial Results

  • First quarter 2015 net income of $9.2 million, or $.25 per diluted share
  • Noninterest income increased 94% from the previous quarter
  • Organic loan growth of $113 million in the first quarter of 2015
  • Created insurance division with purchase of Boyett Agency
  • Completed merger with Georgia-Carolina Bancshares, Inc. on January 1, 2015

ATLANTA, April 23, 2015 (GLOBE NEWSWIRE) -- State Bank Financial Corporation (Nasdaq:STBZ) today announced unaudited financial results for the quarter ended March 31, 2015. Net income for the first quarter of 2015 was $9.2 million, compared to $4.3 million for the first quarter of 2014 and $7.6 million for the fourth quarter of 2014. Fully diluted earnings per share were $.25 in the first quarter of 2015 compared to $.13 in the first quarter of 2014 and $.22 in the fourth quarter of 2014.

Joe Evans, Chairman and CEO, commented, "2015 is off to a great start. We had organic loan growth of over $113 million and our fee income initiatives performed exceedingly well, helped significantly by the mortgage leadership that came with our recently completed First Bank of Georgia acquisition and the SBA team that joined us from Bank of Atlanta in the fourth quarter of last year. It is very gratifying to see such positive results from both of these transactions so quickly."

Operating Highlights

Net interest income of $39.1 million in the first quarter of 2015 increased from $32.5 million in the fourth quarter of 2014 as a result of strong organic loan growth and the addition of loans from First Bank of Georgia ("First Bank"). Interest income on loans, excluding purchased credit impaired ("PCI") loans, for the first quarter of 2015 was $21.4 million, up from $17.4 million in the prior quarter. Accretion income on loans was $16.1 million in the first quarter of 2015, up from $14.1 million in the fourth quarter of 2014, and includes the gain from one loan pool closing out during the quarter. Interest expense of $2.0 million in the first quarter of 2015 was up slightly compared to the prior quarter and prior year periods due to the addition of First Bank deposits. Cost of funds for the first quarter of 2015 was 29 basis points, down four basis points from the prior quarter and eight basis points from the prior year period.

The organic loan portfolio continued to perform well in the first quarter of 2015 as past due organic loans represented only .11% of total organic loans. The provision for loan losses was $3.2 million in the first quarter of 2015, of which $1.1 million was related to organic loan growth and $2.1 million to purchased credit impaired loans. Approximately 60% of the provision for PCI loans relates to a re-estimation on one loan from the noncovered PCI portfolio, with the remainder due to quarterly cash flow re-estimations. Overall, our PCI portfolio continues to perform better than expectations. Increases in expected cash flows are generally recognized over time as an increase in the yield, whereas impairment is recognized immediately.

Noninterest income, excluding (amortization)/accretion of the FDIC receivable for loss share agreements (which we refer to as the indemnification asset), was $10.3 million for the first quarter of 2015, up 94% from $5.3 million in the fourth quarter of 2014. The increase was due primarily to significant contributions in mortgage banking and SBA lending from our two recent bank acquisitions, as well as higher payroll fee income, which had a record first quarter.

Total noninterest income for the first quarter of 2015, which includes (amortization)/accretion of the indemnification asset, was $8.8 million, compared to $6.9 million in the fourth quarter of 2014. We recognized amortization of the indemnification asset of $1.4 million in the first quarter of 2015, as opposed to accretion of the indemnification asset of $1.7 million in the previous quarter.

Total noninterest expense for the first quarter of 2015 was $30.1 million, of which approximately $5.9 million was related to First Bank. Salaries and benefit costs were $19.6 million in the first quarter of 2015, with approximately $3.8 million related to First Bank. Excluding First Bank, noninterest expense and salaries and benefits costs were lower by $1.6 million and $2.0 million, respectively, than in the fourth quarter of 2014 due to planned cost savings from Bank of Atlanta. Merger-related and severance expenses for the first quarter totaled $137 thousand and $365 thousand, respectively.

Financial Condition

Total assets at March 31, 2015 were $3.35 billion, up from $2.88 billion at December 31, 2014 and $2.62 billion at March 31, 2014. Total net loans were $1.97 billion at March 31, 2015, up $364.3 million, excluding loans held for sale, from the fourth quarter of 2014 primarily due to loans acquired from First Bank and strong organic loan growth in the quarter.

Period-end organic loans increased to $1.4 billion at March 31, 2015, a net increase of $113.1 million from the fourth quarter of 2014 and $266.6 million from the first quarter of 2014. Purchased non-credit impaired loans increased $268.1 million from the fourth quarter of 2014, including $271.6 million of loans acquired from First Bank. Purchased credit impaired loans decreased to $190.8 million at the end of the first quarter of 2015, including $1.7 million of PCI loans related to First Bank.

Total deposits at March 31, 2015 were $2.78 billion, up from $2.39 billion at the end of the fourth quarter of 2014 and $2.14 billion at the end of the first quarter of 2014. Period-end noninterest-bearing demand deposits and interest-bearing transaction accounts, which make up total transaction accounts, increased $181.1 million from the fourth quarter of 2014, inclusive of $159.5 million of transaction deposits acquired from First Bank. Period-end noninterest-bearing demand deposits increased $114.6 million from the fourth quarter of 2014, including $89.2 million of noninterest-bearing deposits acquired from First Bank. Period-end noninterest-bearing demand deposits represented 24.9% of total deposits as of March 31, 2015.

Tangible book value per share was $13.70 at the end of the first quarter of 2015. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 14.83% and a Tier I risk-based capital ratio of 19.32%.

Detailed Results

Supplemental tables displaying financial results for the first quarter of 2015 and the previous four quarters are included with this press release.

Conference Call

Chief Executive Officer Joe Evans, President Tom Wiley, Chief Financial Officer Sheila Ray and Chief Risk Officer Kim Childers will discuss financial and business results for the quarter on a conference call today at 11:00 a.m. EDT.

Dial in number: 1.800.743.9807

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 $3.4 billion in assets as of March 31, 2015, 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 on our conference call may be "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. 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
1Q15 Financial Supplement: Table 1
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
1Q15 change vs
(Dollars in thousands, except per share amounts) 1Q15 4Q14 3Q14 2Q14 1Q14 4Q14 1Q14
Income Statement Highlights
Interest income on invested funds $3,602 $2,928 $2,545 $2,522 $2,493 $674 $1,109
Interest income on loans 21,400 17,416 16,162 15,350 15,248 3,984 6,152
Accretion income on loans 16,069 14,124 21,110 17,087 26,536 1,945 (10,467)
Interest expense 1,979 1,923 1,857 1,846 1,894 56 85
Net interest income 39,092 32,545 37,960 33,113 42,383 6,547 (3,291)
Provision for loan losses 3,193 1,189 416 701 590 2,004 2,603
(Amortization) accretion of FDIC receivable for loss share agreements (1,448) 1,652 (196) (1,949) (15,292) (3,100) 13,844
Other noninterest income 10,257 5,285 3,624 3,348 3,130 4,972 7,127
Noninterest expense 30,094 25,799 22,510 22,076 23,083 4,295 7,011
Income before income taxes 14,614 12,494 18,462 11,735 6,548 2,120 8,066
Income tax expense 5,410 4,909 6,958 4,228 2,226 501 3,184
Net income $9,204 $7,585 $11,504 $7,507 $4,322 $1,619 $4,882
Common Share Data
Basic net income per share $.27 $.24 $.36 $.23 $.13 $.03 $.14
Diluted net income per share .25 .22 .34 .22 .13 .03 .12
Cash dividends declared per share .05 .04 .04 .04 .03 .01 .02
Book value per share 14.81 14.38 14.20 13.95 13.74 .43 1.07
Tangible book value per share 13.70 13.97 13.83 13.58 13.36 (.27) .34
Market price per share (quarter end) 21.00 19.98 16.24 16.91 17.69 1.02 3.31
Average Balance Sheet Highlights
Loans, excluding purchased credit impaired $1,791,537 $1,430,495 $1,246,008 $1,192,494 $1,133,802 $361,042 $657,735
Purchased credit impaired loans 194,471 214,518 215,318 236,178 250,824 (20,047) (56,353)
Assets 3,323,713 2,858,209 2,609,776 2,591,025 2,579,904 465,504 743,809
Deposits 2,716,084 2,339,566 2,125,659 2,108,595 2,088,787 376,518 627,297
Equity 525,268 461,137 448,982 444,175 439,105 64,131 86,163
Tangible equity 485,087 447,641 437,038 432,073 426,828 37,446 58,259
Key Metrics
Return on average assets (1) 1.12% 1.05% 1.75% 1.16% .68% .07% .44%
Return on average equity (1) 7.11 6.53 10.17 6.78 3.99 .58 3.12
Yield on earning assets (2) 5.37 5.08 6.44 5.86 7.71 .29 (2.34)
Cost of funds .29 .33 .35 .35 .37 (.04) (.08)
Rate on interest-bearing liabilities .38 .43 .45 .45 .46 (.05) (.08)
Net interest margin (2) 5.11 4.80 6.14 5.55 7.38 .31 (2.27)
Average equity to average assets 15.80 16.13 17.20 17.14 17.02 (.33) (1.22)
Leverage ratio 14.83 15.90 17.16 16.84 16.67 (1.07) (1.84)
Tier I risk-based capital ratio 19.32 23.12 25.17 27.06 27.20 (3.80) (7.88)
Efficiency ratio (2) 62.66 65.20 54.28 63.82 76.19 (2.54) (13.53)
Average loans to average deposits 73.12 70.31 68.75 67.75 66.29 2.81 6.83
Noninterest-bearing deposits to total deposits 24.91 24.14 24.33 21.82 22.02 .77 2.89
(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
1Q15 Financial Supplement: Table 2
Condensed Consolidated Balance Sheets
Quarterly (Unaudited)
1Q15 change vs
(Dollars in thousands) 1Q15 4Q14 3Q14 2Q14 1Q14 4Q14 1Q14
Assets
Cash and amounts due from depository institutions $20,426 $10,550 $17,209 $8,333 $7,314 $9,876 $13,112
Interest-bearing deposits in other financial institutions 285,971 470,608 459,271 499,400 549,593 (184,637) (263,622)
Cash and cash equivalents 306,397 481,158 476,480 507,733 556,907 (174,761) (250,510)
Investment securities available-for-sale 819,609 640,086 532,447 494,874 454,053 179,523 365,556
Loans (1) 2,000,189 1,634,529 1,504,725 1,441,606 1,413,192 365,660 586,997
Allowance for loan and lease losses (2) (29,982) (28,638) (27,231) (35,607) (36,040) (1,344) 6,058
Loans, net 1,970,207 1,605,891 1,477,494 1,405,999 1,377,152 364,316 593,055
Loans held for sale 45,211 3,174 1,283 726 1,552 42,037 43,659
Other real estate owned (3) 16,848 8,568 15,169 23,938 38,437 8,280 (21,589)
Premises and equipment, net 46,370 35,286 34,696 34,820 34,592 11,084 11,778
Goodwill 30,510 10,606 10,381 10,381 10,381 19,904 20,129
Other intangibles, net 9,045 2,752 1,511 1,663 1,824 6,293 7,221
SBA servicing rights 1,902 1,516 386 1,902
FDIC receivable for loss share agreements 17,098 22,320 26,221 44,775 70,361 (5,222) (53,263)
Bank-owned life insurance 57,348 41,479 41,136 40,803 40,474 15,869 16,874
Other assets 31,363 29,374 30,779 20,093 36,758 1,989 (5,395)
Total assets $3,351,908 $2,882,210 $2,647,597 $2,585,805 $2,622,491 $469,698 $729,417
Liabilities and Shareholders' Equity
Noninterest-bearing deposits $691,938 $577,295 $524,634 $461,434 $471,414 $114,643 $220,524
Interest-bearing deposits 2,085,997 1,814,387 1,631,340 1,653,779 1,669,647 271,610 416,350
Total deposits 2,777,935 2,391,682 2,155,974 2,115,213 2,141,061 386,253 636,874
Securities sold under agreements to repurchase 8,250 8,250 8,250
Notes payable 2,769 2,771 2,776 2,779 4,371 (2) (1,602)
Other liabilities 33,708 23,662 30,570 19,506 35,620 10,046 (1,912)
Total liabilities 2,822,662 2,418,115 2,189,320 2,137,498 2,181,052 404,547 641,610
Total shareholders' equity 529,246 464,095 458,277 448,307 441,439 65,151 87,807
Total liabilities and shareholders' equity $3,351,908 $2,882,210 $2,647,597 $2,585,805 $2,622,491 $469,698 $729,417
Capital Ratios (4)
Average equity to average assets 15.80% 16.13% 17.20% 17.14% 17.02% (.33)% (1.22)%
Leverage ratio 14.83 15.90 17.16 16.84 16.67 (1.07) (1.84)
CET1 risk-based capital ratio 19.32 N/A N/A N/A N/A N/A N/A
Tier I risk-based capital ratio 19.32 23.12 25.17 27.06 27.20 (3.80) (7.88)
Total risk-based capital ratio 20.50 24.37 26.42 28.32 28.47 (3.87) (7.97)
Shares Issued and Outstanding
Common stock 35,738,150 32,269,604 32,271,466 32,130,645 32,123,645 3,468,546 3,614,505
(1) Loans covered by loss share agreements with the FDIC were approximately $88.6 million at 1Q15, $99.5 million at 4Q14, $114.2 million at 3Q14, $211.3 million at 2Q14 and $246.3 million at 1Q14.
(2) Allowance for loan losses on purchased credit impaired loans was approximately $10.6 million at 1Q15, $10.2 million at 4Q14, $8.4 million at 3Q14, $17.7 million at 2Q14 and $19.2 million at 1Q14.
(3) Other real estate owned covered by loss share agreements with the FDIC was approximately $4.3 million at 1Q15, $3.3 million at 4Q14, $11.2 million at 3Q14, $23.2 million at 2Q14 and $37.5 million at 1Q14.
(4) Beginning January 1, 2015, the Company's ratios are calculated using the Basel III framework. Capital ratios for prior periods were calculated using the Basel I framework. The Common Equity Tier 1 (CET1) capital ratio is a new ratio introduced under the Basel III framework.
State Bank Financial Corporation
1Q15 Financial Supplement: Table 3
Condensed Consolidated Income Statements
Quarterly (Unaudited)
1Q15 change vs
(Dollars in thousands, except per share amounts) 1Q15 4Q14 3Q14 2Q14 1Q14 4Q14 1Q14
Net Interest Income:
Interest income on invested funds $3,602 $2,928 $2,545 $2,522 $2,493 $674 $1,109
Interest income on loans 21,400 17,416 16,162 15,350 15,248 3,984 6,152
Accretion income on loans 16,069 14,124 21,110 17,087 26,536 1,945 (10,467)
Interest expense 1,979 1,923 1,857 1,846 1,894 56 85
Net interest income 39,092 32,545 37,960 33,113 42,383 6,547 (3,291)
Provision for loan losses 3,193 1,189 416 701 590 2,004 2,603
Net interest income after provision for loan losses 35,899 31,356 37,544 32,412 41,793 4,543 (5,894)
Noninterest Income:
(Amortization) accretion of FDIC receivable for loss share agreements (1,448) 1,652 (196) (1,949) (15,292) (3,100) 13,844
Service charges on deposits 1,489 1,274 1,206 1,196 1,158 215 331
Mortgage banking income 2,680 322 191 163 159 2,358 2,521
Payroll fee income 1,158 1,050 875 822 953 108 205
SBA income 1,123 477 646 1,123
ATM income 725 624 621 636 590 101 135
Bank-owned life insurance income 455 343 333 329 329 112 126
Gain on sale of investment securities 380 223 12 11 157 369
Other 2,247 972 398 190 (70) 1,275 2,317
Total noninterest income 8,809 6,937 3,428 1,399 (12,162) 1,872 20,971
Noninterest Expense:
Salaries and employee benefits 19,582 17,797 14,644 14,575 15,077 1,785 4,505
Occupancy and equipment 3,105 2,615 2,440 2,314 2,529 490 576
Data processing 2,280 1,909 1,758 1,714 1,672 371 608
Legal and professional fees 1,621 844 851 731 1,014 777 607
Marketing 436 491 453 548 332 (55) 104
Federal deposit insurance premiums and other regulatory fees 506 393 356 337 334 113 172
Loan collection and OREO costs 405 (112) (32) 624 517 (219)
Amortization of intangibles 417 257 152 161 162 160 255
Other 1,742 1,605 1,856 1,728 1,339 137 403
Total noninterest expense 30,094 25,799 22,510 22,076 23,083 4,295 7,011
Income Before Income Taxes 14,614 12,494 18,462 11,735 6,548 2,120 8,066
Income tax expense 5,410 4,909 6,958 4,228 2,226 501 3,184
Net Income $9,204 $7,585 $11,504 $7,507 $4,322 $1,619 $4,882
Net Income Per Share
Basic $.27 $.24 $.36 $.23 $.13 $.03 $.14
Diluted .25 .22 .34 .22 .13 .03 .12
Weighted Average Shares Outstanding
Basic 34,373,657 32,271,537 32,206,889 32,126,260 32,094,473 2,102,120 2,279,184
Diluted 36,437,314 33,935,366 33,755,595 33,589,797 33,644,135 2,501,948 2,793,179
State Bank Financial Corporation
1Q15 Financial Supplement: Table 4
Condensed Consolidated Composition of Loans and Deposits at Period Ends
Quarterly (Unaudited)
1Q15 change vs
(Dollars in thousands) 1Q15 4Q14 3Q14 2Q14 1Q14 4Q14 1Q14
Composition of Loans
Organic loans (1):
Construction, land & land development $388,148 $310,987 $324,008 $271,525 $259,488 $77,161 $128,660
Other commercial real estate 606,347 609,478 591,672 616,418 593,260 (3,131) 13,087
Total commercial real estate 994,495 920,465 915,680 887,943 852,748 74,030 141,747
Residential real estate 107,554 91,448 80,231 75,683 67,896 16,106 39,658
Owner-occupied real estate 191,557 188,933 164,514 167,129 171,221 2,624 20,336
Commercial, financial & agricultural 108,929 90,930 102,417 91,552 66,728 17,999 42,201
Leases 21,491 19,959 19,636 1,532 21,491
Consumer 9,442 8,658 9,445 7,997 8,320 784 1,122
Total organic loans 1,433,468 1,320,393 1,291,923 1,230,304 1,166,913 113,075 266,555
Purchased non-credit impaired loans(2):
Construction, land & land development 67,129 2,166 64,963 67,129
Other commercial real estate 94,917 26,793 68,124 94,917
Total commercial real estate 162,046 28,959 133,087 162,046
Residential real estate 88,871 43,669 45,202 88,871
Owner-occupied real estate 77,946 22,743 55,203 77,946
Commercial, financial & agricultural 42,494 11,635 30,859 42,494
Consumer 4,517 791 3,726 4,517
Total purchased non-credit impaired loans 375,874 107,797 268,077 375,874
Purchased credit impaired loans (3):
Construction, land & land development 18,791 24,544 25,463 23,851 30,770 (5,753) (11,979)
Other commercial real estate 54,211 58,680 54,573 54,212 65,599 (4,469) (11,388)
Total commercial real estate 73,002 83,224 80,036 78,063 96,369 (10,222) (23,367)
Residential real estate 74,876 78,793 80,859 86,371 92,509 (3,917) (17,633)
Owner-occupied real estate 39,210 42,168 48,834 43,409 52,791 (2,958) (13,581)
Commercial, financial & agricultural 3,427 1,953 2,790 3,081 4,228 1,474 (801)
Consumer 332 201 283 378 382 131 (50)
Total purchased credit impaired loans 190,847 206,339 212,802 211,302 246,279 (15,492) (55,432)
Total loans $2,000,189 $1,634,529 $1,504,725 $1,441,606 $1,413,192 $365,660 $586,997
Composition of Deposits
Noninterest-bearing demand deposits $691,938 $577,295 $524,634 $461,434 $471,414 $114,643 $220,524
Interest-bearing transaction accounts 562,378 495,966 377,220 387,855 382,697 66,412 179,681
Savings and money market deposits 1,052,677 954,626 910,488 898,833 903,198 98,051 149,479
Time deposits less than $250,000 319,043 247,757 234,145 247,648 256,323 71,286 62,720
Time deposits $250,000 or greater 58,151 18,946 20,418 20,975 22,537 39,205 35,614
Brokered and wholesale time deposits 93,748 97,092 89,069 98,468 104,892 (3,344) (11,144)
Total deposits $2,777,935 $2,391,682 $2,155,974 $2,115,213 $2,141,061 $386,253 $636,874
(1) Loans originated by State Bank and Trust Company ("State Bank") and First Bank of Georgia ("First Bank").
(2) Consists of loans purchased through the Bank of Atlanta and First Bank acquisitions.
(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.
State Bank Financial Corporation
1Q15 Financial Supplement: Table 5
Condensed Consolidated Organic Asset Quality Data
Quarterly (Unaudited)
1Q15 change vs
(Dollars in thousands) 1Q15 4Q14 3Q14 2Q14 1Q14 4Q14 1Q14
Nonperforming organic assets
Nonaccrual loans $1,428 $1,245 $740 $1,063 $1,265 $183 $163
Troubled debt restructurings 3,374 4,301 875 875 866 (927) 2,508
Total nonperforming organic loans 4,802 5,546 1,615 1,938 2,131 (744) 2,671
Other real estate owned 74 410 729 901 (74) (901)
Total nonperforming organic assets $4,802 $5,620 $2,025 $2,667 $3,032 $(818) $1,770
Allowance for loan and lease losses on organic loans
Charge-offs $76 $1,250 $87 $79 $136 $(1,174) $(60)
Recoveries 38 39 30 106 338 (1) (300)
Net charge-offs (recoveries) $38 $1,211 $57 $(27) $(202) $(1,173) $240
Ratios for organic assets
Annualized QTD charge-offs (recoveries) to total average loans .01% .36% .02% (.01)% (.07)% (.35)% .08%
Nonperforming loans to total loans .33 .42 .13 .16 .18 (.09) .15
Nonperforming assets to loans + OREO .33 .43 .16 .22 .26 (.10) .07
Past due loans to total loans .11 .17 .10 .13 .14 (.06) (.03)
Allowance for loan and lease losses to loans 1.36 1.39 1.46 1.45 1.44 (.03) (.08)
State Bank Financial Corporation
1Q15 Financial Supplement: Table 6
Condensed Consolidated Average Balances and Yield Analysis
Quarterly (Unaudited)
1Q15 change vs
(Dollars in thousands) 1Q15 4Q14 3Q14 2Q14 1Q14 4Q14 1Q14
Selected Average Balances
Interest-bearing deposits in other financial institutions $320,248 $450,362 $476,190 $490,009 $518,362 $(130,114) $(198,114)
Investment securities 807,002 603,101 523,488 481,240 430,696 203,901 376,306
Loans, excluding purchased credit impaired (1) 1,791,537 1,430,495 1,246,008 1,192,494 1,133,802 361,042 657,735
Purchased credit impaired loans 194,471 214,518 215,318 236,178 250,824 (20,047) (56,353)
Total earning assets 3,113,258 2,698,476 2,461,004 2,399,921 2,333,684 414,782 779,574
Total nonearning assets 210,455 159,733 148,772 191,104 246,220 50,722 (35,765)
Total assets 3,323,713 2,858,209 2,609,776 2,591,025 2,579,904 465,504 743,809
Interest-bearing transaction accounts 507,087 433,545 376,052 376,143 357,988 73,542 149,099
Savings & money market deposits 1,072,818 958,782 896,503 892,168 894,994 114,036 177,824
Time deposits less than $250,000 327,363 240,509 239,924 252,459 261,918 86,854 65,445
Time deposits $250,000 or greater 56,973 66,009 20,906 21,489 25,457 (9,036) 31,516
Brokered and wholesale time deposits 103,464 86,371 96,743 100,395 106,555 17,093 (3,091)
Notes payable 2,771 2,775 2,778 3,365 5,212 (4) (2,441)
FHLB Advances 326 (326)
Securities sold under agreements to repurchase 24,971 4,284 727 20,687 24,244
Total interest-bearing liabilities 2,095,447 1,792,601 1,632,906 1,646,019 1,652,851 302,846 442,596
Noninterest-bearing deposits 648,379 554,350 495,531 465,941 441,875 94,029 206,504
Other liabilities 54,619 50,121 32,357 34,890 46,073 4,498 8,546
Shareholders' equity 525,268 461,137 448,982 444,175 439,105 64,131 86,163
Total liabilities and shareholders' equity 3,323,713 2,858,209 2,609,776 2,591,025 2,579,904 465,504 743,809
Interest Margins (2)
Interest-bearing deposits in other financial institutions .27% .26% .26% .26% .27% .01% —%
Investment securities, tax-equivalent basis (3) 1.72 1.73 1.70 1.84 2.03 (.01) (.31)
Loans, excluding purchased credit impaired, tax-equivalent basis (4) 4.87 4.85 5.17 5.19 5.48 .02 (.61)
Purchased credit impaired loans 33.51 26.12 38.90 29.02 42.91 7.39 (9.40)
Total earning assets 5.37% 5.08% 6.44% 5.86% 7.71% .29% (2.34)%
Interest-bearing transaction accounts .14 .13 .13 .12 .12 .01 .02
Savings & money market deposits .45 .46 .46 .45 .44 (.01) .01
Time deposits less than $250,000 .30 .43 .54 .57 .58 (.13) (.28)
Time deposits $250,000 or greater .55 .75 .78 .80 .84 (.20) (.29)
Brokered and wholesale time deposits .94 1.02 1.08 .95 .93 (.08) .01
Notes payable 7.61 9.01 9.00 10.37 11.52 (1.40) (3.91)
FHLB Advances 1.22 (1.22)
Securities sold under agreements to repurchase .24 .09 .15 .24
Total interest-bearing liabilities .38% .43% .45% .45% .46% (.05)% (.08)%
Net interest spread 4.99% 4.65% 5.99% 5.41% 7.25% .34% (2.26)%
Net interest margin 5.11% 4.80% 6.14% 5.55% 7.38% .31% (2.27)%
(1) Includes average nonaccrual loans of $5.1 million for 1Q15, $5.6 million for 4Q14, $1.7 million for 3Q14, $2.0 million for 2Q14, and $2.1 million for 1Q14.
(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 $27,000 for 1Q15, $4,000 for 4Q14, $7,000 for 3Q14, $11,000 for 2Q14, and $11,000 for 1Q14.
(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 $98,000 for 1Q15, $80,000 for 4Q14, $75,000 for 3Q14, $66,000 for 2Q14, and $65,000 for 1Q14.

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