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State Bank Reports First Quarter Financial Results; Positive Fundamental Trends Obscured by Timing of Revenue Recognition

ATLANTA, April 25, 2013 (GLOBE NEWSWIRE) -- State Bank Financial Corporation (Nasdaq:STBZ) today announced unaudited financial results for the quarter ended March 31, 2013. Net loss for the first quarter was $1.2 million, compared to net income of $3.2 million for the fourth quarter of 2012 and net income of $5.1 million for the first quarter of 2012. Fully diluted loss per share was $.04 for the first quarter compared to fully diluted earnings per share of $.09 in the fourth quarter of 2012 and fully diluted earnings per share of $.16 in the first quarter of 2012.

Commenting on the results, Joe Evans, Chairman and CEO, said, "Financial results for the quarter again reflected solid operating trends in both our core franchise and in the resolution of our assets covered by loss share. In our traditional banking operations, organic loans grew to more than $1 billion, demand deposits grew to more than $400 million, and our cost of funds was down to 38 basis points in the quarter. In our loss share covered part of the bank, positive trends are somewhat obscured by timing differences between slower recognition of income from increased accretable discount and the more rapid recognition of indemnification asset amortization, both of which directly result from higher than expected collections. This timing disconnect will continue to impact earnings until our larger loss share agreements expire in 2014. Further, expenses were elevated in the quarter as we recognized severance costs related to efficiency actions that will have a meaningful positive impact on our future earnings."

Tom Wiley, Vice Chairman and President, added, "I am very pleased with our continued progress in prudently growing organic loans and our momentum in attracting and deepening core deposit relationships. Operating efficiency is very much front of mind, and the decisions we are making today are positioning our company for long-term sustainable profitability."

Operating Highlights

Net interest income was $35.5 million in the first quarter of 2013, down from $43.2 million in the fourth quarter of 2012 and relatively flat compared to the first quarter of 2012. Accretion income on covered loans declined $7.2 million from the fourth quarter. While the base accretion was higher due to improved cash flow re-estimations and lower loss assumptions, the linked-quarter decrease was primarily driven by fewer loan pools closing out in the quarter. Interest income on noncovered loans for the first quarter was $14.3 million, down from $15.0 million in the prior quarter but up from $11.8 million in the first quarter of 2012. Yield on noncovered loans of 5.77% was down 47 basis points in the first quarter. Approximately one-fourth of this yield compression was due to a cost study update which resulted in the deferral of more loan origination fee income to future periods. The yield on investment securities declined largely due to the higher-yielding nonagency portfolio comprising a smaller percentage of the total portfolio than in previous periods. Interest expense of $2.0 million in the first quarter was down from $2.1 million in the fourth quarter of 2012 and down from $2.9 million in the first quarter of 2012. Cost of funds for the first quarter was 38 basis points, a one basis point improvement from the fourth quarter of 2012 and a 14 basis point improvement from the year ago period. Cost of funds has now decreased for 11 consecutive quarters.

The noncovered loan portfolio continues to perform well, as recoveries were greater than charge-offs for the second straight quarter. Provision for loan losses on noncovered loans increased slightly to $350 thousand in the first quarter from $325 thousand in the prior quarter but decreased from $1.5 million in the first quarter of 2012. Provision for loan losses on covered loans was a negative $2.4 million in the first quarter due to a valuation adjustment driven by improved performance of covered assets. This compared to a provision of $3.0 million in the fourth quarter and a negative $1.3 million in the first quarter of 2012.

Fee income excluding the amortization of the indemnification asset was $4.2 million for the quarter, up from $3.8 million in the prior quarter partly driven by higher payroll fee income from our Altera division. Service charges declined from the prior quarter primarily due to lower consumer NSF fees. Total noninterest income for the first quarter was a negative $12.6 million compared to a negative $11.5 million in the fourth quarter of 2012 and a negative $3.8 million in the first quarter of 2012.

Amortization of the indemnification asset negatively impacted noninterest income by $16.8 million in the first quarter compared to $15.3 million in the fourth quarter and $7.0 million in the first quarter of 2012. This elevated level of amortization is due to higher cash flow re-estimations on covered loans. This change is amplified by having a shorter time period to recognize the amortization, relative to accretion, as the indemnification asset has to terminate at the end of loss share while accretion continues over the life of the loan, which is often much longer than the loss share period. We are currently projecting $43 million of scheduled future amortization with an estimated average life of three quarters, versus $205 million of scheduled future accretion income to be recognized with an estimated average life of nine quarters. The $205 million of accretable discount remaining is $32 million higher than the fourth quarter of 2012 and $10 million more than the first quarter of 2012.

Total noninterest expense for the first quarter was $26.7 million, up from $23.8 million in the fourth quarter of 2012 and $23.2 million in the first quarter of 2012. Approximately $1.6 million of the $2.3 million linked-quarter increase in salaries and benefits was related to one-time severance costs as a result of ongoing efficiency and productivity initiatives. Other drivers of the higher salaries and benefits expense were seasonal tax and benefit costs, including higher FICA taxes, as well as a full quarter of Altera employee costs versus a partial fourth quarter of 2012. Net cost of operations of other real estate owned of $1.3 million also contributed to the increase in noninterest expense in the first quarter of 2013.

Financial Condition

Total assets at quarter-end were $2.64 billion, down slightly compared to $2.66 billion at December 31, 2012 and $2.68 billion at March 31, 2012. Loans not covered by loss share agreements with the FDIC grew a net $66.0 million in the first quarter of 2013 to $1.05 billion and have increased a net $248.5 million year-over-year. Noncovered loans now comprise 72.6% of State Bank's total gross loans. Total net loans were $1.4 billion, up $14.4 million from the fourth quarter and down $74.6 million from the first quarter of 2012 as covered loans continue to be resolved.

Total deposits at quarter-end were $2.15 billion, stable with the prior quarter and down from $2.19 billion in the first quarter of 2012. Noninterest-bearing deposits grew by $22.3 million, or 5.7%, from the fourth quarter and by $96.8 million, or 30.9%, year-over-year. Noninterest-bearing deposits now make up 19.1% of total deposits.

Tangible book value per share was $12.96 at the end of the first quarter, down $.10 from the fourth quarter of 2012 and up $.34 from the first quarter of 2012. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 15.49% and a Tier I risk-based capital ratio of 28.13%.

Detailed Results

Supplemental tables displaying financial results for the first quarter of 2013 and the previous four quarters are included with this press release.

Conference Call

State Bank Chief Executive Officer Joe Evans, Chief Financial Officer Tom Callicutt, and Executive Risk Officer Kim Childers will discuss financial and business results for the quarter on a conference call today at 10:00 a.m. EDT. The dial in number is 1.800.756.3565. Please dial in 10 minutes prior to the start of the call to register. You will be asked to provide your name and affiliation/company to join the call. A replay of the conference call will be available shortly after the call's completion in the Investors section on the company's website at www.statebt.com. A slide presentation for today's call is also available in the Investors section on the company's website.

About State Bank Financial Corporation and State Bank and Trust Company

State Bank Financial Corporation (Nasdaq:STBZ) is the holding company for State Bank and Trust Company, one of Georgia's best-capitalized banks, with approximately $2.64 billion in assets as of March 31, 2013. 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.

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
1Q13 Financial Supplement: Table 1
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
1Q13 Change vs.
(Dollars in thousands, except per share data) 1Q13 4Q12 3Q12 2Q12 1Q12 4Q12 1Q12
INCOME STATEMENT HIGHLIGHTS
Total interest income on invested funds $2,502 $2,496 $2,862 $3,027 $3,005 $6 $(503)
Interest income on noncovered loans, including fees 14,319 14,993 14,679 13,722 11,834 (674) 2,485
Accretion income on covered loans 20,636 27,839 18,893 32,191 23,490 (7,203) (2,854)
Total interest expense 1,996 2,096 2,235 2,566 2,852 (100) (856)
Net interest income 35,461 43,232 34,199 46,374 35,477 (7,771) (16)
Provision for loan losses (noncovered loans) 350 325 1,050 2,125 1,535 25 (1,185)
Provision for loan losses (covered loans) (2,385) 3,021 5,441 2,902 (1,283) (5,406) (1,102)
Noninterest income (12,603) (11,491) (3,254) (1,243) (3,778) (1,112) (8,825)
Noninterest expense 26,664 23,762 19,835 22,426 23,213 2,902 3,451
(Loss)/Income before income taxes (1,771) 4,633 4,619 17,678 8,234 (6,404) (10,005)
Income tax (benefit)/expense (615) 1,418 1,261 6,647 3,096 (2,033) (3,711)
Net (loss)/income $(1,156) $3,215 $3,358 $11,031 $5,138 $(4,371) $(6,294)
COMMON STOCK DATA
Basic (loss)/earnings per share $(.04) $.10 $.11 $.35 $.16 $(.14) $(.20)
Diluted (loss)/earnings per share (.04) .09 .10 .34 .16 (.13) (.20)
Book value per share at period end 13.38 13.48 13.42 13.24 12.88 (.10) .50
Tangible book value per share at period end 12.96 13.06 13.18 12.99 12.62 (.10) .34
Market price at period end 16.37 15.88 16.49 15.16 17.51 .49 (1.14)
Period end shares outstanding 31,918,665 31,908,665 31,896,738 31,721,236 31,721,236 10,000 197,429
Weighted average shares outstanding:
Basic 31,908,776 31,904,381 31,654,046 31,613,581 31,611,603 4,395 297,173
Diluted 31,908,776 33,179,198 32,808,726 32,776,553 32,794,798 (1,270,422) (886,022)
AVERAGE BALANCE SHEET HIGHLIGHTS
Noncovered loans, net of unearned income $1,007,094 $955,153 $901,168 $840,428 $740,905 $51,941 $266,189
Covered loans 427,403 504,138 625,701 707,273 788,511 (76,735) (361,108)
Loans, net of unearned income 1,434,497 1,459,291 1,526,869 1,547,701 1,529,416 (24,794) (94,919)
Assets 2,635,240 2,647,687 2,705,134 2,691,432 2,660,418 (12,447) (25,178)
Deposits 2,115,382 2,114,544 2,182,834 2,190,324 2,203,564 838 (88,182)
Liabilities 2,197,455 2,212,053 2,274,855 2,271,071 2,253,317 (14,598) (55,862)
Equity 437,785 435,634 430,279 420,321 407,101 2,151 30,684
Tangible common equity 424,480 427,794 422,180 411,971 398,389 (3,314) 26,091
KEY METRICS
Return on average assets (.18)% .48% .50% 1.65% .78% (.66)% (.96)%
Return on average equity (1.07) 2.94 3.14 10.56 5.08 (4.01) (6.15)
Yield on earning assets 6.90 8.16 6.74 9.34 7.60 (1.26) (.70)
Cost of funds .38 .39 .41 .47 .52 (.01) (.14)
Rate on interest-bearing liabilities .47 .48 .49 .55 .60 (.01) (.13)
Net interest margin 6.53 7.77 6.33 8.85 7.03 (1.24) (.50)
Average equity to average assets 16.61 16.45 15.91 15.62 15.30 .16 1.31
Leverage ratio 15.49 15.49 15.44 15.24 15.06 -- .43
Tier I risk-based capital ratio 28.13 29.25 29.95 31.45 32.92 (1.12) (4.79)
Total risk-based capital ratio 29.40 30.54 31.23 32.77 34.22 (1.14) (4.82)
Efficiency ratio (1) 116.42 74.73 63.98 49.63 73.10 41.69 43.32
Average loans to average deposits 67.81 69.01 69.95 70.66 69.41 (1.20) (1.60)
Noninterest-bearing deposits to total deposits 19.07 18.03 17.31 15.85 14.30 1.04 4.77
Nonperforming loans to total noncovered loans (2) .42 .49 .58 .52 .49 (.07) (.07)
Nonperforming assets to loans + ORE:
Noncovered .44 .60 .67 .63 .60 (.16) (.16)
Covered 10.67 8.67 9.43 8.07 7.87 2.00 2.80
(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
1Q13 Financial Supplement: Table 2
Condensed Consolidated Balance Sheet
Quarterly (Unaudited)
1Q13 Change vs.
(Dollars in thousands) 1Q13 4Q12 3Q12 2Q12 1Q12 4Q12 1Q12
Assets
Cash and amounts due from depository institutions $8,556 $11,902 $7,516 $6,921 $11,287 $(3,346) $(2,731)
Interest-bearing deposits in other financial institutions 459,494 433,483 345,399 279,060 199,031 26,011 260,463
Cash and cash equivalents 468,050 445,385 352,915 285,981 210,318 22,665 257,732
Investment securities available-for-sale 351,565 303,901 311,323 280,662 322,832 47,664 28,733
Loans receivable:
Noncovered under FDIC loss share agreements 1,051,455 985,502 937,331 881,120 802,955 65,953 248,500
Covered under FDIC loss share agreements, net 396,831 474,713 553,006 687,451 743,838 (77,882) (347,007)
Allowance for loan losses (noncovered loans) (15,122) (14,660) (14,330) (13,317) (11,681) (462) (3,441)
Allowance for loan losses (covered loans) (28,706) (55,478) (46,411) (67,346) (56,087) 26,772 27,381
Net loans 1,404,458 1,390,077 1,429,596 1,487,908 1,479,025 14,381 (74,567)
Mortgage loans held for sale 2,386 4,853 2,130 1,907 3,719 (2,467) (1,333)
Other real estate owned:
Noncovered under FDIC loss share agreements 276 1,115 892 976 957 (839) (681)
Covered under FDIC loss share agreements 47,401 45,062 57,595 60,334 63,572 2,339 (16,171)
Premises and equipment, net 35,379 35,364 38,282 38,298 36,971 15 (1,592)
Goodwill 10,381 10,381 6,562 6,562 6,562 0 3,819
Other intangibles, net 2,819 3,188 1,103 1,360 1,636 (369) 1,183
FDIC receivable for loss share agreements, net 258,848 355,325 354,978 418,826 459,643 (96,477) (200,795)
Other assets 60,622 68,314 87,605 88,411 92,205 (7,692) (31,583)
Total assets $2,642,185 $2,662,965 $2,642,981 $2,671,225 $2,677,440 $(20,780) $(35,255)
Liabilities and Shareholders' Equity
Noninterest-bearing deposits $409,717 $387,450 $367,762 $343,214 $312,967 $22,267 $96,750
Interest-bearing deposits 1,738,473 1,760,986 1,756,536 1,821,922 1,875,908 (22,513) (137,435)
Total deposits 2,148,190 2,148,436 2,124,298 2,165,136 2,188,875 (246) (40,685)
Securities sold under agreements to repurchase 3,959 4,755 607 2,845 1,421 (796) 2,538
Notes payable 3,861 2,523 2,527 2,531 2,535 1,338 1,326
Other liabilities 59,239 77,035 87,351 80,659 76,106 (17,796) (16,867)
Total liabilities 2,215,249 2,232,749 2,214,783 2,251,171 2,268,937 (17,500) (53,688)
Total shareholders' equity 426,936 430,216 428,198 420,054 408,503 (3,280) 18,433
Total liabilities and shareholders' equity $2,642,185 $2,662,965 $2,642,981 $2,671,225 $2,677,440 $(20,780) $(35,255)
Capital Ratios
Average equity to average assets 16.61% 16.45% 15.91% 15.62% 15.30% .16$ 1.31%
Leverage ratio 15.49 15.49 15.44 15.24 15.06 -- .43
Tier I risk-based capital ratio 28.13 29.25 29.95 31.45 32.92 (1.12) (4.79)
Total risk-based capital ratio 29.40 30.54 31.23 32.77 34.22 (1.14) (4.82)
State Bank Financial Corporation
1Q13 Financial Supplement: Table 3
Condensed Consolidated Income Statement
Quarterly (Unaudited)
1Q13 Change vs.
(Dollars in thousands, except per share data) 1Q13 4Q12 3Q12 2Q12 1Q12 4Q12 1Q12
Total interest income on invested funds $2,502 $2,496 $2,862 $3,027 $3,005 $6 $(503)
Interest income on noncovered loans, including fees 14,319 14,993 14,679 13,722 11,834 (674) 2,485
Accretion income on covered loans 20,636 27,839 18,893 32,191 23,490 (7,203) (2,854)
Total interest expense 1,996 2,096 2,235 2,566 2,852 (100) (856)
Net interest income 35,461 43,232 34,199 46,374 35,477 (7,771) (16)
Provision for loan losses (noncovered loans) 350 325 1,050 2,125 1,535 25 (1,185)
Provision for loan losses (covered loans) (2,385) 3,021 5,441 2,902 (1,283) (5,406) (1,102)
Net interest income after provision for loan losses 37,496 39,886 27,708 41,347 35,225 (2,390) 2,271
Noninterest income:
Accretion (amortization) of FDIC receivable for loss share agreements (16,779) (15,260) (6,291) (4,007) (7,011) (1,519) (9,768)
Service charges on deposits 1,215 1,408 1,298 1,199 1,212 (193) 3
Mortgage banking income 306 363 255 311 302 (57) 4
Gain (loss) on sale of investment securities 364 225 -- -- 93 139 271
Gains on FHLB stock redemptions -- 680 101 434 -- (680) 0
Gains on acquisitions -- -- -- -- -- -- --
Payroll fee income 832 622 -- -- -- 210 832
ATM income 605 619 611 610 585 (14) 20
Other 854 (148) 772 210 1,041 1,002 (187)
Total noninterest income (12,603) (11,491) (3,254) (1,243) (3,778) (1,112) (8,825)
Noninterest expense:
Salaries and employee benefits 17,395 15,134 12,811 13,628 12,963 2,261 4,432
Occupancy and equipment 2,456 2,500 2,469 2,419 2,457 (44) (1)
Legal and professional fees 1,601 1,669 1,265 2,173 1,517 (68) 84
Marketing 328 968 573 366 264 (640) 64
Federal insurance premiums and other regulatory fees 469 673 378 355 418 (204) 51
Net cost of operations of other real estate owned 1,288 (92) (484) 458 2,078 1,380 (790)
Data processing 1,437 1,272 1,196 1,336 1,864 165 (427)
Amortization of intangibles 370 251 256 276 246 119 124
Other 1,320 1,387 1,371 1,415 1,406 (67) (86)
Total noninterest expense 26,664 23,762 19,835 22,426 23,213 2,902 3,451
(Loss)/Income before income taxes (1,771) 4,633 4,619 17,678 8,234 (6,404) (10,005)
Income tax (benefit)/expense (615) 1,418 1,261 6,647 3,096 (2,033) (3,711)
Net (loss)/income $(1,156) $3,215 $3,358 $11,031 $5,138 $(4,371) $(6,294)
Basic (loss)/earnings per share $(.04) $.10 $.11 $.35 $.16 $(.14) $(.20)
Diluted (loss)/earnings per share (.04) .09 .10 .34 .16 (.13) (.20)
Weighted average common shares outstanding:
Basic 31,908,776 31,904,381 31,654,046 31,613,581 31,611,603 4,395 297,173
Diluted 31,908,776 33,179,198 32,808,726 32,776,553 32,794,798 (1,270,422) (886,022)
State Bank Financial Corporation
1Q13 Financial Supplement: Table 4
Condensed Consolidated Composition of Loans and Deposits
Quarterly (Unaudited)
1Q13 Change vs.
(Dollars in thousands) 1Q13 4Q12 3Q12 2Q12 1Q12 4Q12 1Q12
Composition of Loans
Noncovered loans:
Construction, land & land development $265,055 $230,448 $249,739 $253,980 $212,165 $34,607 $52,890
Other commercial real estate 486,287 457,729 411,574 356,476 339,084 28,558 147,203
Total commercial real estate 751,342 688,177 661,313 610,456 551,249 63,165 200,093
Commercial & industrial 35,944 35,390 33,817 35,186 38,021 554 (2,077)
Owner-occupied real estate 176,426 172,445 163,327 154,533 152,552 3,981 23,874
Total commercial & industrial 212,370 207,835 197,144 189,719 190,573 4,535 21,797
Residential real estate 45,433 43,179 41,514 41,449 39,356 2,254 6,077
Consumer & other 42,310 46,311 37,360 39,496 21,777 (4,001) 20,533
Total noncovered loans 1,051,455 985,502 937,331 881,120 802,955 65,953 248,500
Covered loans:
Construction, land & land development 58,802 81,288 98,546 136,200 176,164 (22,486) (117,362)
Other commercial real estate 115,194 139,010 165,148 208,975 212,783 (23,816) (97,589)
Total commercial real estate 173,996 220,298 263,694 345,175 388,947 (46,302) (214,951)
Commercial & industrial 10,811 14,859 21,281 29,298 32,722 (4,048) (21,911)
Owner-occupied real estate 80,239 86,612 100,151 118,848 128,219 (6,373) (47,980)
Total commercial & industrial 91,050 101,471 121,432 148,146 160,941 (10,421) (69,891)
Residential real estate 131,254 142,032 156,368 180,167 177,790 (10,778) (46,536)
Consumer & other 531 10,912 11,512 13,963 16,160 (10,381) (15,629)
Total covered loans 396,831 474,713 553,006 687,451 743,838 (77,882) (347,007)
Total loans $1,448,286 $1,460,215 $1,490,337 $1,568,571 $1,546,793 $(11,929) $(98,507)
Composition of Deposits
Noninterest-bearing demand deposits $409,717 $387,450 $367,762 $343,214 $312,967 $22,267 $96,750
Interest-bearing transaction accounts 333,336 355,651 324,305 331,550 316,738 (22,315) 16,598
Savings and money market accounts 959,912 949,631 960,714 1,016,619 1,103,151 10,281 (143,239)
Time deposits less than $100,000 194,098 201,658 208,769 222,402 249,047 (7,560) (54,949)
Time deposits $100,000 or greater 144,501 147,363 157,414 170,844 196,197 (2,862) (51,696)
Brokered and wholesale time deposits 106,626 106,683 105,334 80,507 10,775 (57) 95,851
Total deposits $2,148,190 $2,148,436 $2,124,298 $2,165,136 $2,188,875 $(246) $(40,685)
State Bank Financial Corporation
1Q13 Financial Supplement: Table 5
Condensed Consolidated Asset Quality Data
Quarterly (Unaudited)
1Q13 Change vs.
(Dollars in thousands) 1Q13 4Q12 3Q12 2Q12 1Q12 4Q12 1Q12
Nonperforming noncovered assets:
Nonaccrual loans $3,413 $2,621 $4,117 $4,197 $3,561 $792 $(148)
Troubled debt restructurings 970 2,171 1,297 347 335 (1,201) 635
Total nonperforming noncovered loans 4,383 4,792 5,414 4,544 3,896 (409) 487
Other real estate owned 276 1,115 892 976 957 (839) (681)
Total nonperforming noncovered assets 4,659 5,907 6,306 5,520 4,853 (1,248) (194)
Nonperforming covered assets:
Other real estate owned (1) $47,401 $45,062 $57,595 $60,334 $63,572 $2,339 $(16,171)
Noncovered assets:
Year-to-date charge-offs $12 $669 $667 $555 $65 $(657) $(53)
Year-to-date recoveries 124 87 80 5 7 37 120
Year-to-date net (recovery) charge-offs $(112) $582 $587 $550 $61 $(694) $(173)
Ratios:
Annualized YTD net charge-offs to total average noncovered loans (.04)% .06% .09% .13% .03% (.10)% (.07)%
Nonperforming loans to total noncovered loans (2) .42 .49 .58 .52 .49 (.07) (.07)
Nonperforming assets to loans + ORE:
Noncovered .44 .60 .67 .63 .60 (.16) (.16)
Covered 10.67 8.67 9.43 8.07 7.87 2.00 2.80
Allowance for loan losses to loans:
Noncovered 1.44 1.49 1.53 1.51 1.45 (.05) (.01)
Covered 7.23 11.69 8.39 9.80 7.54 (4.46) (.31)
(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 covered loans to total covered loans is not presented, as there are no covered loans designated as nonperforming.
State Bank Financial Corporation
1Q13 Financial Supplement: Table 6
Condensed Consolidated Average Balances and Yield Analysis
Quarterly (Unaudited)
1Q13 Change vs.
(Dollars in thousands) 1Q13 4Q12 3Q12 2Q12 1Q12 4Q12 1Q12
Selected Average Balances
Interest-bearing deposits in other financial institutions $447,929 $371,873 $333,882 $258,178 $158,949 $76,056 $288,980
Taxable investment securities 311,364 298,957 280,432 292,678 333,661 12,407 (22,297)
Nontaxable investment securities, tax equivalent basis 10,236 12,173 12,263 12,469 10,199 (1,937) 37
Noncovered loans receivable (1) 1,007,094 955,153 901,168 840,428 740,905 51,941 266,189
Covered loans receivable 427,403 504,138 625,701 707,273 788,511 (76,735) (361,108)
Total earning assets 2,204,026 2,142,294 2,153,446 2,111,026 2,032,225 61,732 171,801
Total nonearning assets 431,214 505,393 551,688 580,406 628,193 (74,179) (196,979)
Total assets 2,635,240 2,647,687 2,705,134 2,691,432 2,660,418 (12,447) (25,178)
Interest-bearing transaction accounts 324,342 315,541 321,328 323,126 310,662 8,801 13,680
Savings & money market deposits 956,517 954,260 997,939 1,052,130 1,115,877 2,257 (159,360)
Time deposits less than $100,000 197,908 205,048 215,048 237,154 262,116 (7,140) (64,208)
Time deposits $100,000 or greater 251,955 259,019 264,222 247,466 214,205 (7,064) 37,750
FHLB advances -- -- -- -- -- -- --
Notes payable 2,536 2,525 2,529 2,533 2,537 11 (1)
Securities sold under agreements to repurchase 3,388 5,352 2,448 2,776 3,564 (1,964) (176)
Total interest-bearing liabilities 1,736,646 1,741,745 1,803,514 1,865,185 1,908,961 (5,099) (172,315)
Noninterest-bearing demand deposits 384,660 380,676 384,297 330,448 300,704 3,984 83,956
Other liabilities 76,149 89,632 87,044 75,438 43,652 (13,483) 32,497
Shareholders' equity 437,785 435,634 430,279 420,321 407,101 2,151 30,684
Total liabilities and shareholders' equity 2,635,240 2,647,687 2,705,134 2,691,392 2,660,418 (12,447) (25,178)
Interest Margins (2)
Interest-earning deposits in other financial institutions .23% .27% .22% .24% .26% (.04)% (.03)%
Taxable investment securities 2.82 3.00 3.65 3.80 3.37 (.18) (.55)
Nontaxable investment securities, tax equivalent basis (3) 5.11 5.26 5.28 5.41 6.33 (.15) (1.22)
Noncovered loans receivable 5.77 6.24 6.48 6.57 6.42 (.47) (.65)
Covered loans receivable 19.58 20.74 12.01 18.31 11.98 (1.16) 7.60
Total earning assets 6.90% 8.16% 6.74% 9.34% 7.60% (1.26)% (.70)%
Interest-bearing transaction accounts .12 .11 .12 .12 .13 .01 (.01)
Savings & money market deposits .43 .45 .46 .51 .50 (.02) (.07)
Time deposits less than $100,000 .59 .62 .67 .86 1.12 (.03) (.53)
Time deposits $100,000 or greater .82 .83 .85 .95 1.08 (.01) (.26)
FHLB advances -- -- -- -- -- -- --
Notes payable 12.63 8.67 8.49 8.26 8.72 3.96 3.91
Securities sold under agreements to repurchase .24 .10 .10 .14 .11 .14 .13
Total interest-bearing liabilities .47 .48 .49 .55 .60 (.01) (.13)
Net interest spread 6.43 7.68 6.25 8.79 7.00 (1.25) (.57)
Net interest margin 6.53% 7.77% 6.33% 8.85% 7.03% (1.24)% (.50)%
(1) The above amount includes nonaccrual loans of $3,980 for 1Q13, $3,337 for 4Q12, $4,114 for 3Q12, $4,053 for 2Q12, and $3,340 for 1Q12.
(2) Annualized for the applicable period.
(3) Reflects taxable equivalent adjustments using the statutory tax rate of 35% in adjusting interest on tax-exempt securities to fully taxable basis. The taxable equivalent adjustments included above amount to $45 for 1Q13, $56 for 4Q12, $57 for 3Q12, $59 for 2Q12, and $56 for 1Q12.

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