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State Bank Reports Third Quarter Financial Results; Trends Remain Strong Despite Volatility From Accounting for FDIC Covered Loans

ATLANTA, Oct. 29, 2012 (GLOBE NEWSWIRE) -- State Bank Financial Corporation (Nasdaq:STBZ) today announced unaudited financial results for the quarter ended September 30, 2012. Net income for the third quarter was $3.4 million, bringing year-to-date net income to $19.5 million. Fully diluted earnings per share was $.10 for the third quarter compared to $.34 in the second quarter of 2012 and $.53 in the third quarter of 2011. Year-to-date fully diluted earnings per share was $.60 compared to $1.04 in 2011.

Commenting on these results, Joe Evans, Chairman and CEO, said, "The third quarter was a continuation of our two dominant themes at State Bank, solid operating trends in the core franchise and loss share accounting noise. We had timing issues related to accretion and the amortization of our indemnification asset that caused the contribution to earnings from our acquired portfolios to be the lowest since the inception of the company, however we remain positive about the cumulative profitability of our asset resolution business. In the core bank, once again, we had solid growth in organic loans and transaction account balances, and positive trends in expenses. This momentum in the core is where our long-term franchise value resides."

Total assets at quarter-end were $2.64 billion, relatively flat compared to $2.67 billion at the end of the second quarter and $2.68 billion in the third quarter of 2011. Loans not covered by loss share agreements with the FDIC grew $56.2 million in the third quarter of 2012 to $937.3 million and have grown $287.0 million over the past year. Noncovered loans now comprise 62.9% of State Bank's total gross loans. Total net loans were $1.43 billion, down $58.3 million from the second quarter, and up $19.7 million from the third quarter of 2011.

Total deposits at quarter-end were $2.12 billion, down from $2.17 billion at the end of the second quarter and $2.24 billion in the third quarter of 2011. This decrease was the result of continued active management of higher cost interest-bearing deposits with outflows centered in money market balances. Noninterest-bearing deposits grew by $24.5 million, or 7.2%, from the second quarter and by 40.2% since the third quarter of 2011. Noninterest-bearing deposits now make up 17.3% of total deposits. Cost of funds for the third quarter was 41 basis points, a six basis point improvement from the second quarter of 2012 and a 38 basis point improvement from the third quarter of 2011.

Tangible book value per share increased to $13.18 in the third quarter, up $.19, or 1.5%, from the second quarter and up $1.18 from the third quarter of 2011. State Bank Financial Corporation continues to be well capitalized, finishing the quarter with a leverage ratio of 15.44% and a Tier I risk-based capital ratio of 29.95%.

Net interest income was $34.2 million in the third quarter of 2012, down from $46.4 million in the second quarter of 2012 and $45.5 million in the third quarter of 2011. The linked quarter decrease closely tracked the change in accretion income on covered loans, which declined $13.3 million from the second quarter. Over two-thirds of this linked quarter decrease in accretion was due to fewer early payoffs and the fact that no loan pools closed in the third quarter. Interest income on noncovered loans was up $957 thousand from the second quarter and up $4.6 million from the third quarter of 2011, driven by solid organic loan growth. Interest expense was down $331 thousand from last quarter and down $2.4 million from the third quarter of 2011, a result of the lower cost of funds.

Provision for loan losses on noncovered loans was $1.1 million in the third quarter, down from $2.1 million in the second quarter, reflecting strong credit metrics in the organic loan portfolio. Provision for loan losses on covered loans was $5.4 million in the third quarter, up from $2.9 million in the second quarter and up from $2.8 million in the third quarter of 2011. This increase was a result of additional impairment recognized on covered loans. Approximately one-third of the impaired loans driving the provision were residential and two-thirds were commercial, with collateral centered in raw land and lots in outer areas of the Atlanta MSA.

Amortization of the indemnification asset negatively impacted noninterest income by $6.5 million in the third quarter compared to $4.0 million in the second quarter and accretion that benefited noninterest income by $1.8 million in the third quarter of 2011. As a result of the impairment this quarter on covered loans, several million in additional accretion from an adjustment to yield was deferred and is expected to be realized over future periods rather than as an immediate offset to indemnification asset amortization in the current quarter. Due to the amortization of the indemnification asset, total noninterest income was negative $3.3 million in the third quarter compared to negative $1.2 million in the second quarter of 2012 and $6.7 million in the third quarter of 2011.

Noninterest expense for the third quarter was $19.8 million, down from $22.4 million in the second quarter of 2012 and $21.8 million in the third quarter of 2011, representing the lowest level of expenses for State Bank since the second quarter of 2010. Salaries and employee benefits were down $817 thousand from last quarter and up $518 thousand from the third quarter of 2011. Legal and professional fees saw a decrease of $908 thousand from the second quarter and a decrease of $493 thousand from the third quarter of 2011. Net cost of operations of other real estate owned of a negative $484 thousand was down by $942 thousand from the second quarter and $2.0 million in the third quarter of 2011, the result of gains on dispositions outweighing operating expenses and writedowns during the quarter.

Detailed Results

Supplemental tables displaying financial results for third quarter 2012 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 President Kim Childers will discuss financial and business results for the quarter on a conference call today at 11:00 a.m. EDT. The dial in number is 1.800.269.0310. 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 at www.statebt.com.

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 $2.64 billion in assets as of September 30, 2012. State Bank has locations in Metro Atlanta and Middle Georgia. State Bank Financial Corporation is headquartered in Atlanta, Georgia and State Bank and Trust Company is headquartered in Macon, Georgia.

State Bank was named the best performing community bank in the United States for 2011 by SNL Financial LC for banks between $500 million and $5 billion in assets. State Bank was also ranked fourth among the 195 banks in the $1 billion-to-$5 billion-asset category of Bank Director magazine's 2012 Bank Performance Scorecard, a ranking of U.S. publicly traded banks and thrifts based on 2011 calendar-year financials.

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, 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.

State Bank Financial Corporation
3Q12 Financial Supplement: Table 1
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
3Q12 Change vs
(Dollars in thousands, except per share data) 3Q12 2Q12 1Q12 4Q11 3Q11 2Q12 3Q11
INCOME STATEMENT HIGHLIGHTS
Total interest income on invested funds $ 2,862 $ 3,027 $ 3,005 $ 3,154 $ 3,040 $ (165) $ (178)
Interest income on noncovered loans, including fees 14,679 13,722 11,834 12,486 10,096 957 4,583
Accretion income on covered loans 18,893 32,191 23,490 29,408 36,938 (13,298) (18,045)
Total interest expense 2,235 2,566 2,852 3,595 4,603 (331) (2,368)
Net interest income 34,199 46,374 35,477 41,453 45,471 (12,175) (11,272)
Provision for loan losses (noncovered loans) 1,050 2,125 1,535 2,868 1,060 (1,075) (10)
Provision for loan losses (covered loans) 5,441 2,902 (1,283) 16,768 2,815 2,539 2,626
Noninterest income (3,254) (1,243) (3,778) 18,783 6,689 (2,011) (9,943)
Noninterest expense 19,835 22,426 23,213 27,227 21,789 (2,591) (1,954)
Income before income taxes 4,619 17,678 8,234 13,373 26,496 (13,059) (21,877)
Income tax expense 1,261 6,647 3,096 4,284 9,392 (5,386) (8,131)
Net income $ 3,358 $ 11,031 $ 5,138 $ 9,089 $ 17,104 $ (7,673) $ (13,746)
COMMON STOCK DATA
Basic earnings per share $ .11 $ .35 $ .16 $ .29 $ .54 $ (.24) $ (.43)
Diluted earnings per share .10 .34 .16 .28 .53 (.24) (.43)
Book value per share at period end 13.42 13.24 12.88 12.52 12.27 .18 1.15
Tangible book value per share at period end 13.18 12.99 12.62 12.26 12.00 .19 1.18
Market price at period end 16.49 15.16 17.51 15.11 12.62 1.33 3.87
Period end shares outstanding 31,896,738 31,721,236 31,721,236 31,721,236 31,721,236 175,502 175,502
Weighted average shares outstanding:
Basic 31,654,046 31,613,581 31,611,603 31,611,581 31,611,581 40,465 42,465
Diluted 32,808,726 32,776,553 32,777,121 32,586,069 32,413,101 32,173 395,625
AVERAGE BALANCE SHEET HIGHLIGHTS
Noncovered loans, net of unearned income $ 901,168 $ 840,428 $ 740,905 $ 709,071 $ 601,610 $ 60,740 $ 299,558
Covered loans 625,701 707,273 788,511 818,901 768,878 (81,572) (143,177)
Loans, net of unearned income 1,526,869 1,547,701 1,529,416 1,527,972 1,370,488 (20,832) 156,381
Assets 2,705,134 2,691,432 2,660,418 2,857,643 2,711,296 13,702 (6,162)
Deposits 2,182,834 2,190,364 2,203,564 2,404,501 2,298,343 (7,530) (115,509)
Liabilities 2,274,855 2,271,111 2,253,317 2,461,147 2,332,119 3,744 (57,264)
Equity 430,279 420,321 407,101 396,496 379,177 9,958 51,102
Tangible common equity 422,456 412,222 398,751 387,784 370,545 10,234 51,911
KEY METRICS
Return on average assets .50% 1.65% .78% 1.26% 2.50% (1.15)% (2.00)%
Return on average equity 3.14 10.56 5.08 9.09 17.90 (7.42) (14.76)
Yield on earning assets 6.74 9.34 7.60 8.37 9.36 (2.60) (2.62)
Cost of funds .41 .47 .52 .60 .79 (.06) (.38)
Rate on interest-bearing liabilities .49 .55 .60 .69 .89 (.06) (.40)
Net interest margin 6.33 8.85 7.03 7.70 8.50 (2.52) (2.17)
Average equity to average assets 15.91 15.62 15.30 13.87 13.99 .29 1.92
Leverage ratio 15.44 15.24 15.06 13.76 14.16 .20 1.28
Tier I risk-based capital ratio 29.95 31.45 32.92 33.84 33.78 (1.50) (3.83)
Total risk-based capital ratio 31.23 32.77 34.22 35.15 35.03 (1.54) (3.80)
Efficiency ratio (1) 63.98 49.63 73.10 45.15 41.73 14.35 22.25
Average loans to average deposits 69.95 70.66 69.41 63.55 59.63 (.71) 10.32
Noninterest-bearing deposits to total deposits 17.31 15.85 14.30 12.93 11.70 1.46 5.61
Nonperforming loans to total noncovered loans (2): .58 .52 .49 .31 .36 .06 .22
Nonperforming assets to loans + ORE:
Noncovered .67 .63 .60 .48 .52 .04 .15
Covered 9.43 8.07 7.87 9.42 10.95 1.36 (1.52)
(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
3Q12 Financial Supplement: Table 2
Condensed Consolidated Balance Sheet
Quarterly (Unaudited)
3Q12 Change vs.
(Dollars in thousands) 3Q12 2Q12 1Q12 4Q11 3Q11 2Q12 3Q11
Assets
Cash and amounts due from depository institutions $7,516 $6,921 $11,287 $13,747 $8,237 $595 $(721)
Interest-bearing deposits in other financial institutions 345,399 279,060 199,031 206,785 353,760 66,339 (8,361)
Cash and cash equivalents 352,915 285,981 210,318 220,532 361,997 66,934 (9,082)
Investment securities available-for-sale 311,323 280,662 322,832 349,929 350,225 30,661 (38,902)
Federal Home Loan Bank stock 3,440 4,651 8,802 8,802 8,882 (1,211) (5,442)
Loans receivable:
Noncovered under FDIC loss share agreements 937,331 881,120 802,955 701,029 650,312 56,211 287,019
Covered under FDIC loss share agreements, net 553,006 687,451 743,838 812,154 770,102 (134,445) (217,096)
Allowance for loan losses (noncovered loans) (14,330) (13,317) (11,681) (10,207) (7,670) (1,013) (6,660)
Allowance for loan losses (covered loans) (46,411) (67,346) (56,087) (59,277) (2,815) 20,935 (43,596)
Net loans 1,429,596 1,487,908 1,479,025 1,443,699 1,409,929 (58,312) 19,667
Mortgage loans held for sale 2,130 1,907 3,719 6,229 1,661 223 469
Other real estate owned:
Noncovered under FDIC loss share agreements 892 976 957 1,210 1,072 (84) (180)
Covered under FDIC loss share agreements 57,595 60,334 63,572 84,496 94,647 (2,739) (37,052)
Premises and equipment, net 38,282 38,298 36,971 36,760 36,832 (16) 1,450
Goodwill 6,562 6,562 6,562 6,562 6,562 -- --
Core deposit intangible, net 1,103 1,360 1,636 1,882 1,925 (257) (822)
FDIC receivable for loss share agreements, net 355,741 419,786 460,593 529,440 346,836 (64,045) 8,905
Other assets 84,165 81,804 81,661 86,793 54,792 2,361 29,373
Total assets $2,643,744 $2,670,229 $2,676,648 $2,776,334 $2,675,360 $(26,485) $(31,616)
Liabilities and Shareholders' Equity
Noninterest-bearing deposits $367,762 $343,214 $312,967 $297,188 $262,331 $24,548 $105,431
Interest-bearing deposits 1,756,536 1,821,922 1,875,908 2,001,277 1,980,652 (65,386) (224,116)
Total deposits 2,124,298 2,165,136 2,188,875 2,298,465 2,242,983 (40,838) (118,685)
Securities sold under agreements to repurchase 607 2,845 1,421 4,749 6,145 (2,238) (5,538)
Notes payable 2,527 2,531 2,535 2,539 2,542 (4) (15)
Other liabilities 88,114 79,663 75,314 73,293 34,559 8,451 53,555
Total liabilities 2,215,546 2,250,175 2,268,145 2,379,046 2,286,229 (34,629) (70,683)
Total shareholders' equity 428,198 420,054 408,503 397,288 389,131 8,144 39,067
Total liabilities and shareholders' equity $2,643,744 $2,670,229 $2,676,648 $2,776,334 $2,675,360 $(26,485) $(31,616)
Capital Ratios
Average equity to average assets 15.91% 15.62% 15.30% 13.87% 13.99% .29% 1.92%
Leverage ratio 15.44 15.24 15.06 13.76 14.16 0.20 1.28
Tier I risk-based capital ratio 29.95 31.45 32.92 33.84 33.78 (1.50) (3.83)
Total risk-based capital ratio 31.23 32.77 34.22 35.15 35.03 (1.54) (3.80)
State Bank Financial Corporation
3Q12 Financial Supplement: Table 3
Condensed Consolidated Income Statement
Quarterly (Unaudited)
3Q12 Change vs.
(Dollars in thousands, except per share data) 3Q12 2Q12 1Q12 4Q11 3Q11 2Q12 3Q11
Total interest income on invested funds $2,862 $3,027 $3,005 $3,154 $3,040 $(165) $(178)
Interest income on noncovered loans, including fees 14,679 13,722 11,834 12,486 10,096 957 4,583
Accretion income on covered loans 18,893 32,191 23,490 29,408 36,938 (13,298) (18,045)
Total interest expense 2,235 2,566 2,852 3,595 4,603 (331) (2,368)
Net interest income 34,199 46,374 35,477 41,453 45,471 (12,175) (11,272)
Provision for loan losses (noncovered loans) 1,050 2,125 1,535 2,868 1,060 (1,075) (10)
Provision for loan losses (covered loans) 5,441 2,902 (1,283) 16,768 2,815 2,539 2,626
Net interest income after provision for loan losses 27,708 41,347 35,225 21,817 41,596 (13,639) (13,888)
Noninterest income:
Accretion (amortization) of FDIC receivable for loss share agreements (6,488) (3,997) (7,001) 131 1,775 (2,491) (8,263)
Service charges on deposits 1,298 1,199 1,212 1,370 1,383 99 (85)
Mortgage banking income 255 311 302 349 260 (56) (5)
Gain (loss) on sale of investment securities -- -- 93 (20) (31) -- 31
Gains on FHLB stock redemptions 101 434 -- 772 574 (333) (473)
Gains on acquisitions -- -- -- 14,890 -- -- --
ATM income 611 610 585 551 525 1 86
Other 969 200 1,031 740 2,203 769 (1,234)
Total noninterest income (3,254) (1,243) (3,778) 18,783 6,689 (2,011) (9,943)
Noninterest expense:
Salaries and employee benefits 12,811 13,628 12,963 14,333 12,293 (817) 518
Occupancy and equipment 2,469 2,419 2,457 2,795 2,008 50 461
Legal and professional fees 1,265 2,173 1,517 1,342 1,758 (908) (493)
Marketing 573 366 264 935 844 207 (271)
Federal insurance premiums and other regulatory fees 378 355 418 193 (33) 23 411
Net cost of operations of other real estate owned (484) 458 2,078 4,322 1,998 (942) (2,482)
Data processing 1,196 1,336 1,864 1,387 1,285 (140) (89)
Core deposit intangible amortization expense 256 276 246 241 236 (20) 20
Other 1,371 1,415 1,406 1,679 1,400 (44) (29)
Total noninterest expense 19,835 22,426 23,213 27,227 21,789 (2,591) (1,954)
Income before income taxes 4,619 17,678 8,234 13,373 26,496 (13,059) (21,877)
Income tax expense 1,261 6,647 3,096 4,284 9,392 (5,386) (8,131)
Net income $3,358 $11,031 $5,138 $9,089 $17,104 $(7,673) $(13,746)
Basic earnings per share $.11 $.35 $.16 $.29 $.54 $(.24) $(.43)
Diluted earnings per share .10 .34 .16 .28 .53 (.24) (.43)
Weighted average common shares outstanding:
Basic 31,654,046 31,613,581 31,611,603 31,611,581 31,611,581 40,465 42,465
Diluted 32,808,726 32,776,553 32,777,121 32,586,069 32,413,101 32,173 395,625
State Bank Financial Corporation
3Q12 Financial Supplement: Table 4
Condensed Consolidated Composition of Loans and Deposits
Quarterly (Unaudited)
3Q12 Change vs
(Dollars in thousands) 3Q12 2Q12 1Q12 4Q11 3Q11 2Q12 3Q11
Composition of Loans
Noncovered loans:
Construction, land & land development $249,739 $253,980 $212,165 $162,382 $139,433 $(4,241) $110,306
Other commercial real estate 411,574 356,476 339,084 307,814 292,559 55,098 119,015
Total commercial real estate 661,313 610,456 551,249 470,196 431,992 50,857 229,321
Commercial & industrial 33,817 35,186 38,021 35,817 36,253 (1,369) (2,436)
Owner-occupied real estate 163,327 154,533 152,552 139,128 124,885 8,794 38,442
Total commercial & industrial 197,144 189,719 190,573 174,945 161,138 7,425 36,006
Residential real estate 41,514 41,449 39,356 33,738 29,293 65 12,221
Consumer & other 37,360 39,496 21,777 22,150 27,889 (2,136) 9,471
Total noncovered loans 937,331 881,120 802,955 701,029 650,312 56,211 287,019
Covered loans:
Construction, land & land development 98,546 136,200 176,164 190,110 184,242 (37,654) (85,696)
Other commercial real estate 165,148 208,975 212,783 233,575 229,548 (43,827) (64,400)
Total commercial real estate 263,694 345,175 388,947 423,685 413,790 (81,481) (150,096)
Commercial & industrial 21,281 29,298 32,722 38,174 39,855 (8,017) (18,574)
Owner-occupied real estate 100,151 118,848 128,219 143,523 118,324 (18,697) (18,173)
Total commercial & industrial 121,432 148,146 160,941 181,697 158,179 (26,714) (36,747)
Residential real estate 156,368 180,167 177,790 189,109 182,021 (23,799) (25,653)
Consumer & other 11,512 13,963 16,160 17,663 16,112 (2,451) (4,600)
Total covered loans 553,006 687,451 743,838 812,154 770,102 (134,445) (217,096)
Total loans $1,490,337 $1,568,571 $1,546,793 $1,513,183 $1,420,414 $(78,234) $69,923
Composition of Deposits
Noninterest-bearing demand deposits $367,762 $343,214 $312,967 $297,188 $262,331 $24,548 $105,431
Interest-bearing transaction accounts 324,305 331,550 316,738 359,020 286,130 (7,245) 38,175
Savings and money market accounts 960,714 1,016,619 1,103,151 1,140,552 1,234,359 (55,905) (273,645)
Time deposits less than $100,000 208,769 222,402 249,047 274,415 245,377 (13,633) (36,608)
Time deposits $100,000 or greater 157,414 170,844 196,197 213,200 198,790 (13,430) (41,376)
Brokered and wholesale time deposits 105,334 80,507 10,775 14,090 15,996 24,827 89,338
Total deposits $2,124,298 $2,165,136 $2,188,875 $2,298,465 $2,242,983 $(40,838) $(118,685)
State Bank Financial Corporation
3Q12 Financial Supplement: Table 5
Condensed Consolidated Asset Quality Data
Quarterly (Unaudited)
3Q12 Change vs
(Dollars in thousands) 3Q12 2Q12 1Q12 4Q11 3Q11 2Q12 3Q11
Nonperforming noncovered assets:
Nonaccrual loans $4,117 $4,197 $3,561 $1,905 $2,088 $(80) $2,029
Troubled debt restructurings 1,297 347 335 256 259 950 1,038
Total nonperforming noncovered loans 5,414 4,544 3,896 2,161 2,347 870 3,067
Other real estate owned 892 976 957 1,210 1,072 (84) (180)
Total nonperforming noncovered assets 6,306 5,520 4,853 3,371 3,419 786 2,887
Nonperforming covered assets:
Other real estate owned (1) $57,595 $60,334 $63,572 $84,496 $94,647 $(2,739) $(37,052)
Noncovered assets:
Year-to-date charge-offs $667 $555 $68 $1,744 $1,390 $112 $(723)
Year-to-date recoveries 80 5 7 118 95 75 (15)
Year-to-date net charge-offs $587 $550 $61 $1,626 $1,295 $37 $(708)
Ratios:
Annualized YTD net charge-offs to total average noncovered loans .09% .13% .03% .23% .29% (.04)% (.20)%
Nonperforming loans to total noncovered loans (2): .58% .52% .49% .31% .36% .06% .22%
Nonperforming assets to loans + ORE:
Noncovered .67 .63 .60 .48 .52 .04 .15
Covered 9.43 8.07 7.87 9.42 10.95 1.36 (1.52)
Allowance for loan losses to loans:
Noncovered 1.53 1.51 1.45 1.46 1.18 .02 .35
Covered 8.39 9.80 7.54 7.30 .37 (1.41) 8.02
(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
3Q12 Financial Supplement: Table 6
Condensed Consolidated Average Balances and Yield Analysis
Quarterly (Unaudited)
3Q12 Change vs
(Dollars in thousands) 3Q12 2Q12 1Q12 4Q11 3Q11 2Q12 3Q11
Selected Average Balances
Interest-bearing deposits in other financial institutions $333,882 $258,178 $158,949 $261,853 $389,013 $75,704 $(55,131)
Taxable investment securities 280,432 292,678 333,661 365,388 353,426 (12,246) (72,994)
Nontaxable investment securities, tax equivalent basis 12,263 12,469 10,199 11,267 11,823 (206) 440
Noncovered loans receivable (1) 901,168 840,428 740,905 709,071 601,610 60,740 299,558
Covered loans receivable 625,701 707,273 788,511 818,901 768,878 (81,572) (143,177)
Total earning assets 2,153,446 2,111,026 2,032,225 2,166,480 2,124,750 42,420 28,696
Total nonearning assets 551,688 580,406 628,193 691,163 586,546 (28,718) (34,858)
Total assets 2,705,134 2,691,432 2,660,418 2,857,643 2,711,296 13,702 (6,162)
Interest-bearing transaction accounts 321,328 323,126 310,662 309,991 268,364 (1,798) 52,964
Savings & money market deposits 997,939 1,052,130 1,115,877 1,204,433 1,294,561 (54,191) (296,622)
Time deposits less than $100,000 215,048 237,154 262,116 322,617 258,196 (22,106) (43,148)
Time deposits $100,000 or greater 264,222 247,466 214,205 261,114 216,408 16,756 47,814
FHLB advances -- -- -- 4,566 -- -- --
Notes payable 2,529 2,533 2,537 2,541 2,545 (4) (16)
Securities sold under agreements to repurchase 2,448 2,776 3,564 4,030 4,098 (328) (1,650)
Total interest-bearing liabilities 1,803,514 1,865,185 1,908,961 2,109,292 2,044,172 (61,671) (240,658)
Noninterest-bearing demand deposits 384,297 330,488 300,704 306,346 260,814 53,809 123,483
Other liabilities 87,044 75,438 43,652 45,509 27,133 11,606 59,911
Shareholders' equity 430,279 420,321 407,101 396,496 379,177 9,958 51,102
Total liabilities and shareholders' equity 2,705,134 2,691,432 2,660,418 2,857,643 2,711,296 13,702 (6,162)
Interest Margins (2)
Interest-earning deposits in other financial institutions .22% .24% .26% .32% .25% (.02)% (.03)%
Taxable investment securities 3.65 3.80 3.37 3.07 3.02 (.15) .63
Nontaxable investment securities, tax equivalent basis (3) 5.28 5.41 6.33 6.59 5.77 (.13) (.49)
Noncovered loans receivable 6.48 6.57 6.42 6.99 6.66 (.09) (.18)
Covered loans receivable 12.01 18.31 11.98 14.57 19.06 (6.30) (7.05)
Total earning assets 6.74% 9.34% 7.60% 8.37% 9.36% (2.60)% (2.62)%
Interest-bearing transaction accounts .12 .12 .13 .12 .21 -- (.09)
Savings & money market deposits .46 .51 .50 .54 .71 (.05) (.25)
Time deposits less than $100,000 .67 .86 1.12 1.17 1.75 (.19) (1.08)
Time deposits $100,000 or greater .85 .95 1.08 1.38 1.77 (.10) (.92)
FHLB advances -- -- -- .94 -- -- --
Notes payable 8.49 8.32 8.72 8.39 8.73 .17 (.24)
Securities sold under agreements to repurchase .10 .10 .11 .27 .10 -- --
Total interest-bearing liabilities .49 .55 .60 .69 .89 (.06) (.40)
Net interest spread 6.25 8.78 7.00 7.68 8.47 (2.53) (2.22)
Net interest margin 6.33% 8.85% 7.03% 7.70% 8.50% (2.52)% (2.17)%
(1) The above amount includes nonaccrual loans of $4,370 for 3Q12, $4,182 for 2Q12, $3,340 for 1Q12, $2,562 for 4Q11 and $4,069 for 3Q11.
(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
CONTACT: Media Contact: David Rubinger 404.502.1240 / david@rubinger.com Investor Relations Contact: David Black 404.266.4490 / david.black@statebt.com

Source:State Bank Financial Corporation