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State Bank Financial Corporation Reports Second Quarter 2017 Financial Results

  • Second quarter 2017 net income of $15.2 million, or $.39 per diluted share
  • Return on average assets of 1.45%
  • Loan growth of $45 million excluding purchased credit impaired loans
  • Net interest margin continues to benefit from rising interest rates
  • Announced AloStar Bank of Commerce transaction in June, which is expected to be significantly accretive to earnings per share

ATLANTA, Ga., July 27, 2017 (GLOBE NEWSWIRE) -- State Bank Financial Corporation (NASDAQ:STBZ) today announced unaudited financial results for the second quarter ended June 30, 2017. Net income for the second quarter of 2017 was $15.2 million, compared to $11.6 million in the first quarter of 2017 and $14.0 million in the second quarter of 2016. Fully diluted earnings per share were $.39 in the second quarter of 2017 compared to $.30 in the first quarter of 2017 and $.38 in the second quarter of 2016.

Joe Evans, Chairman of State Bank Financial, commented, “We had a great second quarter. These results reflect the fully integrated impact of our acquisitions of The National Bank of Georgia and S Bank and our continued performance improvement on all fronts. Our all-cash acquisition of AloStar Bank, which was announced during the quarter, will be yet another meaningful enhancement to our earnings trajectory.”

Operating Highlights

Interest income on loans improved to $34.9 million in the second quarter of 2017, an $812,000 increase from the first quarter of 2017 and a $9.5 million increase from the second quarter of 2016. Net interest income of $46.5 million in the second quarter of 2017 increased from $44.0 million in the first quarter of 2017 and $41.7 million in the second quarter of 2016. Accretion income on loans was $9.2 million in the second quarter of 2017, up from $7.7 million in the first quarter of 2017 but down from $14.0 million in the second quarter of 2016, which was positively impacted by loan pool closings. As of June 30, 2017, approximately $60 million of accretable discount remains to be recognized as loan accretion income.

Noninterest income, led by a strong quarter in SBA and mortgage banking, was $10.5 million in the second quarter of 2017, compared to $9.5 million in the first quarter of 2017 and $10.2 million in the second quarter of 2016. SBA income increased $805,000 from the previous quarter to $2.0 million, while mortgage banking income increased $202,000 to $3.1 million.

Total noninterest expense declined 7% in the second quarter of 2017 to $32.0 million, compared to $34.6 million in the first quarter of 2017 and $30.7 million in the second quarter of 2016. The $2.6 million linked-quarter decrease was due to improvements in nearly every expense category as the recent mergers are now fully integrated and cost savings are realized.

Financial Condition

Total assets at June 30, 2017, were $4.23 billion, up from $4.20 billion at March 31, 2017. Total loans were $2.9 billion at June 30, 2017, up $26.2 million from the first quarter of 2017. Period-end organic and purchased non-credit impaired loans increased to $2.7 billion at March 31, 2017, a net increase of $44.8 million from the first quarter of 2017. Purchased credit impaired loans decreased to $135.6 million at the end of the second quarter of 2017, an $18.6 million linked-quarter decline.

Tom Wiley, Vice Chairman and CEO, commented, “I’m very pleased with the quarter’s financial results, demonstrating strong revenue growth coupled with expense discipline. I’m even more pleased with the fundamental drivers of these results: the successful integration of two banks in the first half of the year and the team’s continued execution on our customer-centric strategic priorities. These core competencies cause me to be excited about the future of our franchise.”

The organic loan portfolio continued to perform well in the second quarter of 2017 as past due organic loans represented .09% of total organic loans. The provision for loan losses on organic loans was $1.1 million in the second quarter of 2017 and was primarily attributable to organic loan growth in the quarter. The allowance as a percent of loans was .99% at the end of the second quarter of 2017.

Total deposits at June 30, 2017, were $3.45 billion, up $42.9 million from $3.41 billion at March 31, 2017. Period-end transaction accounts, comprised of noninterest-bearing demand deposits and interest-bearing transaction accounts, increased $55.9 million from the first quarter of 2017. Noninterest-bearing demand deposits represented 29.2% of total deposits as of June 30, 2017.

Tangible book value per share was $13.94 at the end of the second quarter of 2017. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 13.23% and a Tier I risk-based capital ratio of 14.98%.

Detailed Results

Supplemental tables displaying financial results for the second quarter of 2017, the previous four quarters, and the first half of 2017 are included with this press release.

Non-GAAP Financial Measures

This press release contains financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). For more information on these non-GAAP financial measures, please refer to 2Q17 Financial Supplement: Table 8, Reconciliation of Non-GAAP Measures.

Conference Call

Chairman Joe Evans, Chief Executive Officer Tom Wiley, Chief Financial Officer Sheila Ray, and Chief Credit Officer David Black will discuss financial and business results for the quarter on a conference call today at 11:00 a.m. ET.

Dial in number: 1.800.677.8143

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 is completed 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 $4.2 billion in assets as of June 30, 2017, is an Atlanta-based bank holding company for State Bank and Trust Company. State Bank operates 31 full-service banking offices and seven mortgage origination offices in seven of Georgia’s eight largest MSAs.

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

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release and other information that we make publicly available from time to time are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “intend,” “anticipate,” “plan,” “seek,” “believe,” “expect,” “strategy,” “future,” “likely,” “project,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements regarding the amount of accretable discount that remains, our expectation that the AloStar Bank of Commerce transaction will meaningfully enhance our earnings through significant earnings accretion, and statements regarding the impact of our core competencies on our future performance. Such forward-looking statements are subject to risks, uncertainties, and other factors, including our inability to obtain the requisite regulatory approvals for the proposed AloStar Bank of Commerce transaction and meet other closing terms and conditions, the reaction to such transaction of each bank’s customers, employees and counterparties, difficulties related to the transition of services, a downturn in the economy, particularly in our markets, volatile credit and financial markets both domestic and foreign, potential deterioration in real estate values, regulatory changes and excessive loan losses, as well as additional risks and uncertainties contained in the “Risk Factors” and forward-looking statements disclosure contained in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, any or all of which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.


State Bank Financial Corporation
2Q17 Financial Supplement: Table 1
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
2Q17 change vs
(Dollars in thousands, except per share amounts) 2Q17 1Q17 4Q16 3Q16 2Q16 1Q17 2Q16
Income Statement Highlights
Interest income on loans $34,872 $34,060 $26,696 $26,580 $25,406 $812 $9,466
Accretion income on loans 9,228 7,677 10,271 9,335 13,961 1,551 (4,733)
Interest income on invested funds 5,747 5,460 4,810 4,714 4,726 287 1,021
Total interest income 49,847 47,197 41,777 40,629 44,093 2,650 5,754
Interest expense 3,369 3,239 2,631 2,504 2,371 130 998
Net interest income 46,478 43,958 39,146 38,125 41,722 2,520 4,756
Provision for loan and lease losses
(organic & PNCI loans)
1,470 1,361 300 7 1,600 109 (130)
Provision for loan and lease losses
(purchased credit impaired loans)
375 (359) (23) 81 (1,594) 734 1,969
Provision for loan and lease losses 1,845 1,002 277 88 6 843 1,839
Total noninterest income 10,476 9,459 9,911 9,769 10,230 1,017 246
Total noninterest expense 31,997 34,565 32,875 28,480 30,674 (2,568) 1,323
Income before income taxes 23,112 17,850 15,905 19,326 21,272 5,262 1,840
Income tax expense 7,909 6,292 5,578 6,885 7,287 1,617 622
Net income $15,203 $11,558 $10,327 $12,441 $13,985 $3,645 $1,218
Common Share Data
Basic earnings per share $.39 $.30 $.28 $.34 $.38 $.09 $.01
Diluted earnings per share .39 .30 .28 .34 .38 .09 .01
Cash dividends declared per share .14 .14 .14 .14 .14
Book value per share 16.23 15.96 15.80 15.21 15.00 .27 1.23
Tangible book value per share (1) 13.94 13.66 13.48 13.99 13.77 .28 .17
Market price per share (quarter end) 27.12 26.12 26.86 22.82 20.35 1.00 6.77
Common Shares Outstanding
Common stock 38,967,972 38,870,424 38,845,573 36,894,553 36,894,641 97,548 2,073,331
Weighted average shares outstanding:
Basic 37,896,125 37,867,718 35,904,009 35,863,183 35,822,654 28,407 2,073,471
Diluted 37,942,483 37,954,585 36,009,098 35,965,948 35,923,691 (12,102) 2,018,792
Average Balance Sheet Highlights
Loans $2,905,415 $2,846,571 $2,431,512 $2,406,629 $2,326,666 $58,844 $578,749
Assets 4,200,843 4,181,961 3,636,544 3,564,860 3,524,468 18,882 676,375
Deposits 3,413,831 3,423,506 2,975,510 2,866,822 2,873,019 (9,675) 540,812
Equity 627,294 617,009 559,561 557,365 546,838 10,285 80,456
Tangible equity (1) 538,153 527,603 514,982 512,265 501,221 10,550 36,932


State Bank Financial Corporation
2Q17 Financial Supplement: Table 1 (continued)
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
2Q17 change vs
(Dollars in thousands, except per share amounts) 2Q17 1Q17 4Q16 3Q16 2Q16 1Q17 2Q16
Key Metrics (2)
Return on average assets 1.45% 1.12% 1.13% 1.39% 1.60% .33% (.15)%
Return on average equity 9.72 7.60 7.34 8.88 10.29 2.12 (.57)
Yield on earning assets 5.11 4.93 4.87 4.84 5.37 .18 (.26)
Cost of funds .38 .37 .35 .34 .33 .01 .05
Rate on interest-bearing liabilities .53 .52 .49 .47 .46 .01 .07
Net interest margin 4.76 4.59 4.56 4.54 5.08 .17 (.32)
Leverage ratio (3) 13.23 13.04 14.90 14.64 14.56 .19 (1.33)
Tier I risk-based capital ratio (3) 14.98 14.74 14.78 16.68 16.52 .24 (1.54)
Total risk-based capital ratio (3) 15.75 15.49 15.52 17.56 17.42 .26 (1.67)
Efficiency ratio (4) 56.18 64.71 67.01 59.46 59.04 (8.53) (2.86)
Average loans to average deposits 85.11 83.15 81.72 83.95 80.98 1.96 4.13
Noninterest-bearing deposits to total deposits 29.24 27.71 28.69 30.09 28.75 1.53 .49
(1) Denotes a non-GAAP financial measure. See Reconciliation of Non-GAAP Measures (Table 8) for further information.
(2) Income statement ratios and yield/rate information are annualized for the applicable period.
(3) Current period capital ratios are estimated as of the date of this earnings release.
(4) Noninterest expense divided by net interest income plus noninterest income.


State Bank Financial Corporation
2Q17 Financial Supplement: Table 2
Condensed Consolidated Balance Sheets
Quarterly (Unaudited)
2Q17 change vs
(Dollars in thousands) 2Q17 1Q17 4Q16 3Q16 2Q16 1Q17 2Q16
Assets
Cash and amounts due from depository institutions $11,284 $12,101 $13,219 $10,648 $11,964 $(817) $(680)
Interest-bearing deposits in other financial institutions 126,390 62,222 132,851 103,122 70,603 64,168 55,787
Federal funds sold 3,523
Cash and cash equivalents 137,674 74,323 149,593 113,770 82,567 63,351 55,107
Investment securities available-for-sale 847,795 896,297 847,178 822,655 824,980 (48,502) 22,815
Investment securities held-to-maturity 63,104 67,053 67,063 67,071 63,080 (3,949) 24
Loans 2,881,000 2,854,780 2,814,572 2,346,346 2,345,096 26,220 535,904
Allowance for loan and lease losses (27,988) (26,976) (26,598) (27,177) (27,599) (1,012) (389)
Loans, net 2,853,012 2,827,804 2,787,974 2,319,169 2,317,497 25,208 535,515
Loans held-for-sale 48,895 51,380 52,169 63,852 71,302 (2,485) (22,407)
Other real estate owned 2,407 3,759 10,897 10,609 11,578 (1,352) (9,171)
Premises and equipment, net 51,170 51,535 52,056 42,009 42,153 (365) 9,017
Goodwill 77,476 77,084 77,084 36,357 36,357 392 41,119
Other intangibles, net 11,599 12,054 12,749 8,515 9,029 (455) 2,570
SBA servicing rights 3,828 3,547 3,477 3,275 3,165 281 663
Bank-owned life insurance 66,320 65,855 65,371 60,282 59,749 465 6,571
Other assets 70,697 71,990 99,654 69,211 65,309 (1,293) 5,388
Total assets $4,233,977 $4,202,681 $4,225,265 $3,616,775 $3,586,766 $31,296 $647,211
Liabilities and Shareholders’ Equity
Noninterest-bearing deposits $1,009,509 $944,838 $984,419 $890,588 $829,673 $64,671 $179,836
Interest-bearing deposits 2,443,183 2,464,937 2,446,746 2,068,704 2,055,817 (21,754) 387,366
Total deposits 3,452,692 3,409,775 3,431,165 2,959,292 2,885,490 42,917 567,202
Federal funds purchased and securities sold under
agreements to repurchase
25,256 25,056 27,673 20,124 33,923 200 (8,667)
FHLB borrowings 80,000 100,000 47,014 20,000 62,000 (20,000) 18,000
Notes payable 398 398 398 398 398
Other liabilities 43,294 47,169 105,382 55,827 51,599 (3,875) (8,305)
Total liabilities 3,601,640 3,582,398 3,611,632 3,055,641 3,033,410 19,242 568,230
Total shareholders’ equity 632,337 620,283 613,633 561,134 553,356 12,054 78,981
Total liabilities and shareholders’ equity $4,233,977 $4,202,681 $4,225,265 $3,616,775 $3,586,766 $31,296 $647,211
Capital Ratios (1)
Average equity to average assets 14.93% 14.75% 15.39% 15.63% 15.52% .18% (.59)%
Leverage ratio 13.23 13.04 14.90 14.64 14.56 .19 (1.33)
CET1 risk-based capital ratio 14.98 14.74 14.78 16.68 16.52 .24 (1.54)
Tier I risk-based capital ratio 14.98 14.74 14.78 16.68 16.52 .24 (1.54)
Total risk-based capital ratio 15.75 15.49 15.52 17.56 17.42 .26 (1.67)
(1) Current period capital ratios are estimated as of the date of this earning release.


State Bank Financial Corporation
2Q17 Financial Supplement: Table 3
Condensed Consolidated Income Statements
Quarterly (Unaudited)
2Q17 change vs
(Dollars in thousands, except per share amounts) 2Q17 1Q17 4Q16 3Q16 2Q16 1Q17 2Q16
Net Interest Income:
Interest income on loans $34,872 $34,060 $26,696 $26,580 $25,406 $812 $9,466
Accretion income on loans 9,228 7,677 10,271 9,335 13,961 1,551 (4,733)
Interest income on invested funds 5,747 5,460 4,810 4,714 4,726 287 1,021
Interest expense 3,369 3,239 2,631 2,504 2,371 130 998
Net interest income 46,478 43,958 39,146 38,125 41,722 2,520 4,756
Provision for loan and lease losses (organic & PNCI loans) 1,470 1,361 300 7 1,600 109 (130)
Provision for loan and lease losses (purchased credit impaired loans) 375 (359) (23) 81 (1,594) 734 1,969
Provision for loan and lease losses 1,845 1,002 277 88 6 843 1,839
Net interest income after provision for loan and lease losses 44,633 42,956 38,869 38,037 41,716 1,677 2,917
Noninterest Income:
Service charges on deposits 1,471 1,467 1,319 1,383 1,352 4 119
Mortgage banking income 3,096 2,894 2,511 3,216 3,551 202 (455)
Payroll and insurance income 1,418 1,495 1,528 1,297 1,282 (77) 136
SBA income 1,983 1,178 1,718 1,553 1,685 805 298
ATM income 864 832 735 759 769 32 95
Bank-owned life insurance income 465 484 467 533 468 (19) (3)
Gain on sale of investment securities 13 12 42 38 396 1 (383)
Other 1,166 1,097 1,591 990 727 69 439
Total noninterest income 10,476 9,459 9,911 9,769 10,230 1,017 246
Noninterest Expense:
Salaries and employee benefits 21,912 22,057 19,554 19,799 20,662 (145) 1,250
Occupancy and equipment 3,329 3,280 3,069 2,984 3,015 49 314
Data processing 2,382 2,639 2,131 2,097 2,211 (257) 171
Legal and professional fees 898 1,805 1,702 1,064 976 (907) (78)
Merger-related expenses 372 2,235 3,507 135 319 (1,863) 53
Marketing 403 664 430 665 619 (261) (216)
Federal deposit insurance premiums and other regulatory fees 398 397 188 441 553 1 (155)
Loan collection costs and OREO activity (213) (1,042) (127) (841) (96) 829 (117)
Amortization of intangibles 697 696 516 513 528 1 169
Other 1,819 1,834 1,905 1,623 1,887 (15) (68)
Total noninterest expense 31,997 34,565 32,875 28,480 30,674 (2,568) 1,323
Income Before Income Taxes 23,112 17,850 15,905 19,326 21,272 5,262 1,840
Income tax expense 7,909 6,292 5,578 6,885 7,287 1,617 622
Net Income $15,203 $11,558 $10,327 $12,441 $13,985 $3,645 $1,218
Net income allocated to participating securities $413 $295 $282 $348 $408 $118 $5
Net income allocated to common shareholders 14,790 11,263 10,045 12,093 13,577 3,527 1,213
Earnings Per Share
Basic $.39 $.30 $.28 $.34 $.38 $.09 $.01
Diluted .39 .30 .28 .34 .38 .09 .01
Weighted Average Shares Outstanding
Basic 37,896,125 37,867,718 35,904,009 35,863,183 35,822,654 28,407 2,073,471
Diluted 37,942,483 37,954,585 36,009,098 35,965,948 35,923,691 (12,102) 2,018,792


State Bank Financial Corporation
2Q17 Financial Supplement: Table 4
Condensed Consolidated Income Statements
Year to Date (Unaudited)
Six Months Ended June 30 Change
(Dollars in thousands, except per share amounts) 2017 2016
Net Interest Income:
Interest income on loans $68,932 $49,748 $19,184
Accretion income on loans 16,905 23,704 (6,799)
Interest income on invested funds 11,207 9,399 1,808
Interest expense 6,608 4,484 2,124
Net interest income 90,436 78,367 12,069
Provision for loan and lease losses (organic & PNCI loans) 2,831 3,289 (458)
Provision for loan and lease losses (purchased credit impaired loans) 16 (3,417) 3,433
Provision for loan and lease losses 2,847 (128) 2,975
Net interest income after provision for loan and lease losses 87,589 78,495 9,094
Noninterest Income:
Service charges on deposits 2,938 2,738 200
Mortgage banking income 5,990 6,592 (602)
Payroll and insurance income 2,913 2,800 113
SBA income 3,161 3,187 (26)
ATM income 1,696 1,514 182
Bank-owned life insurance income 949 930 19
Gain on sale of investment securities 25 409 (384)
Other 2,263 1,451 812
Total noninterest income 19,935 19,621 314
Noninterest Expense:
Salaries and employee benefits 43,969 39,422 4,547
Occupancy and equipment 6,609 6,116 493
Data processing 5,021 4,286 735
Legal and professional fees 2,703 1,929 774
Merger-related expenses 2,607 319 2,288
Marketing 1,067 1,121 (54)
Federal deposit insurance premiums and other regulatory fees 795 1,115 (320)
Loan collection costs and OREO activity (1,255) 389 (1,644)
Amortization of intangibles 1,393 1,073 320
Other 3,653 3,802 (149)
Total noninterest expense 66,562 59,572 6,990
Income Before Income Taxes 40,962 38,544 2,418
Income tax expense 14,201 13,721 480
Net Income $26,761 $24,823 $1,938
Net income allocated to participating securities $706 $673 $33
Net income allocated to common shareholders 26,055 24,150 1,905
Earnings Per Share
Basic $.69 $.67 $.02
Diluted .69 .67 .02
Weighted Average Shares Outstanding
Basic 37,881,999 35,979,436 1,902,563
Diluted 37,934,187 36,077,820 1,856,367


State Bank Financial Corporation
2Q17 Financial Supplement: Table 5
Condensed Consolidated Composition of Loans and Deposits at Period Ends
Quarterly (Unaudited)
2Q17 change vs
(Dollars in thousands) 2Q17 1Q17 4Q16 3Q16 2Q16 1Q17 2Q16
Composition of Loans
Organic loans (1):
Construction, land & land development $413,557 $418,186 $500,018 $486,299 $470,672 $(4,629) $(57,115)
Other commercial real estate 960,762 885,570 754,790 744,270 748,949 75,192 211,813
Total commercial real estate 1,374,319 1,303,756 1,254,808 1,230,569 1,219,621 70,563 154,698
Residential real estate 167,755 161,460 144,295 139,926 139,832 6,295 27,923
Owner-occupied real estate 244,637 251,703 256,317 239,726 238,059 (7,066) 6,578
Commercial, financial & agricultural 355,629 336,257 327,381 306,141 290,245 19,372 65,384
Leases 73,103 62,603 71,724 74,722 82,977 10,500 (9,874)
Consumer 60,028 56,776 36,039 39,373 34,124 3,252 25,904
Total organic loans 2,275,471 2,172,555 2,090,564 2,030,457 2,004,858 102,916 270,613
Purchased non-credit impaired loans(2):
Construction, land & land development 31,083 43,787 51,208 10,035 11,427 (12,704) 19,656
Other commercial real estate 171,914 188,737 209,531 58,261 64,665 (16,823) 107,249
Total commercial real estate 202,997 232,524 260,739 68,296 76,092 (29,527) 126,905
Residential real estate 117,449 137,699 144,596 56,468 60,100 (20,250) 57,349
Owner-occupied real estate 114,438 119,871 115,566 52,016 56,414 (5,433) 58,024
Commercial, financial & agricultural 31,654 33,690 36,206 10,447 11,121 (2,036) 20,533
Consumer 3,393 4,281 6,255 1,826 1,978 (888) 1,415
Total purchased non-credit impaired loans 469,931 528,065 563,362 189,053 205,705 (58,134) 264,226
Purchased credit impaired loans (3):
Construction, land & land development 16,821 17,211 16,537 11,564 13,310 (390) 3,511
Other commercial real estate 46,185 60,664 60,742 38,238 39,218 (14,479) 6,967
Total commercial real estate 63,006 77,875 77,279 49,802 52,528 (14,869) 10,478
Residential real estate 45,518 49,728 54,507 53,953 56,887 (4,210) (11,369)
Owner-occupied real estate 23,188 22,099 23,980 22,389 24,281 1,089 (1,093)
Commercial, financial & agricultural 3,615 4,153 4,533 608 722 (538) 2,893
Consumer 271 305 347 84 115 (34) 156
Total purchased credit impaired loans 135,598 154,160 160,646 126,836 134,533 (18,562) 1,065
Total loans $2,881,000 $2,854,780 $2,814,572 $2,346,346 $2,345,096 $26,220 $535,904
Composition of Deposits
Noninterest-bearing demand deposits $1,009,509 $944,838 $984,419 $890,588 $829,673 $64,671 $179,836
Interest-bearing transaction accounts 591,038 599,858 664,350 547,078 531,676 (8,820) 59,362
Savings and money market deposits 1,373,686 1,393,711 1,292,867 1,101,458 1,097,098 (20,025) 276,588
Time deposits less than $250,000 340,950 369,430 388,164 332,873 345,999 (28,480) (5,049)
Time deposits $250,000 or greater 78,070 85,459 78,685 57,556 63,686 (7,389) 14,384
Brokered and wholesale time deposits 59,439 16,479 22,680 29,739 17,358 42,960 42,081
Total deposits $3,452,692 $3,409,775 $3,431,165 $2,959,292 $2,885,490 $42,917 $567,202
(1) Loans originated by State Bank and Trust Company.
(2) Consists of loans purchased in our acquisitions of Bank of Atlanta, First Bank of Georgia, The National Bank of Georgia, and S Bank.
(3) Acquired loans, which at acquisition, management determined it was probable that we would be unable to collect all contractual principal and interest payments due, including
all loans acquired from the FDIC.



State Bank Financial Corporation
2Q17 Financial Supplement: Table 6
Condensed Consolidated Asset Quality Data
Quarterly (Unaudited)
2Q17 change vs
(Dollars in thousands) 2Q17 1Q17 4Q16 3Q16 2Q16 1Q17 2Q16
Allowance for loan and lease losses on
organic loans
Beginning Balance $21,885 $21,086 $21,736 $22,008 $22,626 $799 $(741)
Charge-offs (536) (540) (553) (311) (2,307) 4 1,771
Recoveries 113 77 34 39 54 36 59
Net (charge-offs) recoveries (423) (463) (519) (272) (2,253) 40 1,830
Provision for loan and lease losses 1,098 1,262 (131) 1,635 (164) (537)
Ending Balance $22,560 $21,885 $21,086 $21,736 $22,008 $675 $552
Allowance for loan and lease losses on
purchased non-credit impaired loans
Beginning Balance $491 $439 $150 $158 $166 $52 $325
Charge-offs (197) (48) (143) (16) (1) (149) (196)
Recoveries 1 1 1 1 28 (27)
Net (charge-offs) recoveries (196) (47) (142) (15) 27 (149) (223)
Provision for loan and lease losses 372 99 431 7 (35) 273 407
Ending Balance $667 $491 $439 $150 $158 $176 $509
Allowance for loan and lease losses on
purchased credit impaired loans
Beginning Balance $4,600 $5,073 $5,291 $5,433 $7,553 $(473) $(2,953)
Charge-offs (214) (114) (195) (223) (606) (100) 392
Recoveries 80 (80)
Net (charge-offs) recoveries (214) (114) (195) (223) (526) (100) 312
Provision for loan and lease losses 375 (359) (23) 81 (1,594) 734 1,969
Ending Balance $4,761 $4,600 $5,073 $5,291 $5,433 $161 $(672)
Nonperforming organic assets
Nonaccrual loans $1,422 $6,114 $6,234 $6,423 $6,927 $(4,692) $(5,505)
Total nonperforming organic loans 1,422 6,114 6,234 6,423 6,927 (4,692) (5,505)
Other real estate owned 23 232 282 83 42 (209) (19)
Total nonperforming organic assets $1,445 $6,346 $6,516 $6,506 $6,969 $(4,901) $(5,524)
Nonperforming purchased non-credit
impaired assets
Nonaccrual loans $5,141 $4,098 $3,381 $1,672 $1,744 $1,043 $3,397
Total nonperforming PNCI loans 5,141 4,098 3,381 1,672 1,744 1,043 3,397
Other real estate owned 21 21 (21)
Total nonperforming PNCI assets $5,141 $4,098 $3,381 $1,693 $1,765 $1,043 $3,376
Ratios for organic assets
Annualized QTD charge-offs (recoveries) on
organic loans to average organic loans
.08% .09% .10% .05% .47% (.01) % (.39) %
Nonperforming organic loans to organic loans .06 .28 .30 .32 .35 (.22) (.29)
Nonperforming organic assets to organic loans
+ OREO
.06 .29 .31 .32 .35 (.23) (.29)
Past due organic loans to organic loans .09 .08 .06 .09 .18 .01 (.09)
Allowance for loan and lease losses on organic
loans to organic loans
.99 1.01 1.01 1.07 1.10 (.02) (.11)
State Bank Financial Corporation
2Q17 Financial Supplement: Table 6 (continued)
Condensed Consolidated Asset Quality Data
Quarterly (Unaudited)
2Q17 change vs
(Dollars in thousands) 2Q17 1Q17 4Q16 3Q16 2Q16 1Q17 2Q16
Ratios for purchased non-credit impaired loans
Annualized QTD charge-offs (recoveries) on PNCI
loans to average PNCI loans
.16% .03% .31% .03% (.05) % .13% .21%
Nonperforming PNCI loans to PNCI loans 1.09 .78 .60 .88 .85 .31 .24
Nonperforming PNCI assets to PNCI loans + OREO 1.09 .78 .60 .90 .86 .31 .23
Past due PNCI loans to PNCI loans 1.05 .90 .68 .41 .40 .15 .65
Allowance for loan and lease losses on PNCI loans
to PNCI loans
.14 .09 .08 .08 .08 .05 .06
Ratios for purchased credit impaired loans (1)
Annualized QTD charge-offs (recoveries) on PCI
loans to average PCI loans
.60% .30% .63% .68% 1.57% .30% (.97) %
Past due PCI loans to PCI loans 10.26 10.68 8.92 11.00 10.92 (.42) (.66)
Allowance for loan and lease losses on PCI loans
to PCI loans
3.51 2.98 3.16 4.17 4.04 .53 (.53)
(1) For each period presented, a portion of our purchased credit impaired loans were contractually past due; however, such delinquencies were included in our performance
expectations in determining the fair values of purchased credit impaired loans at each acquisition and at subsequent valuation dates. All purchased credit impaired loan
cash flows and the timing of such cash flows continue to be estimable and probable of collection and thus accretion income continues to be recognized on these assets.
As such, we do not consider purchased credit impaired loans to be nonperforming assets.



State Bank Financial Corporation
2Q17 Financial Supplement: Table 7
Condensed Consolidated Average Balances and Yield Analysis
Quarterly (Unaudited)
2Q17 change vs
(Dollars in thousands) 2Q17 1Q17 4Q16 3Q16 2Q16 1Q17 2Q16
Average Balances
Interest-bearing deposits in other financial institutions and
federal funds sold
$73,862 $85,720 $82,797 $63,315 $80,638 $(11,858) $(6,776)
Investment securities 947,300 961,913 911,025 881,642 905,019 (14,613) 42,281
Loans, excluding purchased credit impaired (1) 2,762,996 2,692,517 2,307,794 2,275,859 2,191,506 70,479 571,490
Purchased credit impaired loans 142,419 154,054 123,718 130,770 135,160 (11,635) 7,259
Total earning assets 3,926,577 3,894,204 3,425,334 3,351,586 3,312,323 32,373 614,254
Total nonearning assets 274,266 287,757 211,210 213,274 212,145 (13,491) 62,121
Total assets 4,200,843 4,181,961 3,636,544 3,564,860 3,524,468 18,882 676,375
Interest-bearing transaction accounts 585,343 602,378 575,977 515,974 531,359 (17,035) 53,984
Savings & money market deposits 1,380,586 1,388,876 1,118,548 1,105,635 1,052,106 (8,290) 328,480
Time deposits less than $250,000 355,968 387,090 325,838 340,275 351,883 (31,122) 4,085
Time deposits $250,000 or greater 81,507 69,721 59,308 61,172 64,869 11,786 16,638
Brokered and wholesale time deposits 38,353 19,926 22,885 20,723 24,471 18,427 13,882
Other borrowings 119,652 81,344 52,555 94,455 61,146 38,308 58,506
Total interest-bearing liabilities 2,561,409 2,549,335 2,155,111 2,138,234 2,085,834 12,074 475,575
Noninterest-bearing deposits 972,074 955,515 872,954 823,043 848,331 16,559 123,743
Other liabilities 40,066 60,102 48,918 46,218 43,465 (20,036) (3,399)
Shareholders’ equity 627,294 617,009 559,561 557,365 546,838 10,285 80,456
Total liabilities and shareholders' equity 4,200,843 4,181,961 3,636,544 3,564,860 3,524,468 18,882 676,375
Interest Margins (2)
Interest-bearing deposits in other financial institutions
and federal funds sold
.50% .44% .31% .28% .33% .06% .17%
Investment securities, tax-equivalent basis (3) 2.39 2.26 2.07 2.11 2.07 .13 .32
Loans, excluding purchased credit impaired, tax-equivalent
basis (4)
5.08 5.15 4.63 4.67 4.68 (.07) .40
Purchased credit impaired loans 25.99 20.21 33.03 28.40 41.54 5.78 (15.55)
Total earning assets 5.11% 4.93% 4.87% 4.84% 5.37% .18% (.26)%
Interest-bearing transaction accounts .12 .12 .12 .12 .12
Savings & money market deposits .61 .60 .59 .54 .53 .01 .08
Time deposits less than $250,000 .68 .72 .70 .67 .64 (.04) .04
Time deposits $250,000 or greater .72 .73 .84 .77 .71 (.01) .01
Brokered and wholesale time deposits 1.05 1.06 .85 .92 1.07 (.01) (.02)
Other borrowings .82 .65 .45 .40 .52 .17 .30
Total interest-bearing liabilities .53% .52% .49% .47% .46% .01% .07%
Net interest spread 4.58% 4.41% 4.38% 4.37% 4.91% .17% (.33)%
Net interest margin 4.76% 4.59% 4.56% 4.54% 5.08% .17% (.32)%
Net interest margin contribution from
accretion income on loans
.94% .80% 1.19% 1.11% 1.70% .14% (.76)%
(1) Includes average nonaccrual loans of $9.3 million for 2Q17, $9.9 million for 1Q17, $8.4 million for 4Q16, $8.6 million for 3Q16, and $10.0 million for 2Q16.
(2) Interest income or expense annualized for the applicable period.
(3) Reflects taxable equivalent adjustments using the federal statutory tax rate of 35% in adjusting interest on tax-exempt securities to a fully taxable basis. The taxable equivalent
adjustments included above amount to $0 for 2Q17, $0 for 1Q17, $0 for 4Q16, $0 for 3Q16, and $2,000 for 2Q16.
(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 $131,000 for 2Q17, $140,000 for 1Q17, $142,000 for 4Q16, $142,000 for 3Q16, and $113,000 for 2Q16.


State Bank Financial Corporation
2Q17 Financial Supplement: Table 8
Reconciliation of Non-GAAP Measures (1)
Quarterly (Unaudited)
(dollars in thousands, except per share amounts;
taxable equivalent
)
2Q17 1Q17 4Q16 3Q16 2Q16
Book value per common share reconciliation
Book value per common share (GAAP) $16.23 $15.96 $15.80 $15.21 $15.00
Effect of goodwill and other intangibles (2.29) (2.30) (2.32) (1.22) (1.23)
Tangible book value per common share $13.94 $13.66 $13.48 $13.99 $13.77
Average tangible equity reconciliation
Average equity (GAAP) $627,294 $617,009 $559,561 $557,365 $546,838
Effect of average goodwill and other intangibles (89,141) (89,406) (44,579) (45,100) (45,617)
Average tangible equity $538,153 $527,603 $514,982 $512,265 $501,221
(1) Certain financial measures included in this press release, tangible book value per common share and average tangible equity, are financial measures that are not recognized by generally accepted accounting principles in the United States, or GAAP. These non-GAAP measures exclude the effect of the period end or average balance of intangible assets. Management believes that these non-GAAP measures provides additional useful information to investors, particularly since these measure are widely used by industry analysts for companies with prior merger and acquisition activities, such as us.
A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure is presented in the table above. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. These non-GAAP financial measures should not be considered as a substitute for GAAP financial measures, and we strongly encourage investors to review the GAAP financial measures included in this press release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this press release with other companies’ non-GAAP financial measures having the same or similar names.


Investor Relations: Sheila Ray 404.239.8684 / sheila.ray@statebt.com

Source:State Bank Financial Corporation