- Net income of $18.0 million, or $.46 per diluted share, in the third quarter of 2018
- Return on assets of 1.43% and return on equity of 10.76%
- Organic and PNCI loan growth of $56 million
- Merger-related expenses of $11.0 million in the third quarter of 2018
- Received shareholder approval for merger with Cadence Bancorporation
ATLANTA, Oct. 22, 2018 (GLOBE NEWSWIRE) -- State Bank Financial Corporation (NASDAQ: STBZ) today announced unaudited financial results for the third quarter of 2018. Net income for the third quarter of 2018 was $18.0 million, compared to $18.8 million in the second quarter of 2018, and $14.4 million in the third quarter of 2017. Fully diluted earnings per share were $.46 in the third quarter of 2018, compared to $.48 in the second quarter of 2018 and $.37 in the third quarter of 2017. The third quarter of 2018 included pre-tax merger-related expenses of $11.0 million.
On September 18, 2018, State Bank’s shareholders approved the pending merger with Cadence Bancorporation. The completion of the merger remains subject to the receipt of certain regulatory approvals and the satisfaction of other customary closing conditions. Shares of restricted stock that vested upon shareholder approval of the merger resulted in $9.8 million of merger-related expense in the quarter. The effective tax rate for the third quarter was 9.30% due to the tax benefit resulting from the vesting of the restricted stock. Merger-related expenses, including the restricted stock vesting and tax adjustments, reduced fully diluted earnings per share by $.14 after-tax.
Joe Evans, Chairman of State Bank Financial, commented, “I am pleased with our strong financial performance in the third quarter and our shareholders’ overwhelming approval of our pending merger with Cadence. Our two banks are highly complementary and I expect the combined entity to produce exceptional results.”
Operating Highlights
Interest income on loans improved to $51.6 million in the third quarter of 2018, a $1.1 million increase from the second quarter of 2018 and a $16.2 million increase from the third quarter of 2017. Net interest income of $58.6 million in the third quarter of 2018 increased from $56.1 million in the second quarter of 2018 and $44.3 million in the third quarter of 2017. Accretion income on loans was $8.2 million in the third quarter of 2018, up from $6.6 million in the second quarter of 2018 and $6.5 million in the third quarter of 2017. Accretion income includes $4.1 million in recovery income during the third quarter of 2018 compared to $2.7 million in the second quarter of 2018 and $2.3 million in the third quarter of 2017.
Noninterest income was $9.7 million in the third quarter of 2018, compared to $10.9 million in the second quarter of 2018 and $9.7 million in the third quarter of 2017. Mortgage banking revenues declined $1.3 million in the third quarter of 2018 compared to the second quarter of 2018. In late September 2018, State Bank announced the transition of the majority of its mortgage employees to another financial institution.
Total noninterest expense for the third quarter of 2018 was $46.3 million, compared to $40.0 million in the second quarter of 2018 and $31.6 million in the third quarter of 2017. The increase was primarily due to $11.0 million in merger-related expenses, of which $9.8 million was related to the vesting of restricted stock in September 2018. Salaries and employee benefit expenses decreased $1.1 million compared to the second quarter of 2018. Total noninterest expense excluding merger-related expenses declined $2.0 million from the second quarter of 2018.
Tom Wiley, Vice Chairman and CEO, commented, “I am proud of our positive operating trends. While the mortgage transition impacted noninterest income during the third quarter, the reduction of associated expenses will measurably improve our efficiency going forward.”
Financial Condition
Total assets at September 30, 2018, were $4.9 billion, down from $5.0 billion at June 30, 2018. Total loans were $3.6 billion at September 30, 2018, up $32.1 million from the second quarter of 2018. Period-end organic loans increased to $2.8 billion at September 30, 2018, an increase of $123.1 million from the second quarter of 2018. Purchased non-credit impaired loans decreased to $725.7 million at September 30, 2018, a $67.3 million linked-quarter decline. Purchased credit impaired loans decreased to $124.8 million at September 30, 2018, a $23.7 million linked-quarter decline.
Past due organic and purchased non-credit impaired loans were .34% and 2.73% of their respective portfolios at September 30, 2018. The increase in past due purchased non-credit impaired loans was due to one relationship that was recorded as nonaccrual in the second quarter of 2018. The provision for loan losses on organic and purchased non-credit impaired loans was $2.1 million in the third quarter of 2018. The organic allowance as a percent of organic loans was .98% at the end of the third quarter of 2018.
Total deposits at September 30, 2018, were $4.2 billion, down $115.8 million from June 30, 2018, although average deposits increased $54.8 million from the second quarter of 2018. Noninterest-bearing demand deposits represented 27.5% of total deposits as of September 30, 2018. Period-end noninterest-bearing demand deposits were $1.2 billion, a $35.5 million decrease, while average noninterest-bearing demand deposits increased $40.9 million from the second quarter of 2018.
Tangible book value per share was $14.70 at the end of the third quarter of 2018. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 11.85% and a Tier I risk-based capital ratio of 12.89%.
Detailed Results
Supplemental tables displaying financial results for the third quarter of 2018, the previous four quarters and year-to-date 2018 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 3Q18 Financial Supplement: Table 8, Reconciliation of Non-GAAP Measures.
About State Bank Financial Corporation
State Bank Financial Corporation (NASDAQ: STBZ), with approximately $4.9 billion in consolidated assets as of September 30, 2018, is an Atlanta-based bank holding company for State Bank and Trust Company. State Bank operates a full service banking business and offers a broad range of commercial and retail banking products to our customers throughout 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,” “focus,” “strategy,” “future,” “likely,” “project,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements regarding our pending merger with Cadence Bancorporation (“Cadence”) and the impact the transition of our mortgage employees to another financial institution will have on expenses going forward. Such forward-looking statements are subject to risks, uncertainties, and other factors, including 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; the occurrence of any event, change or other circumstances that could give rise to the right of Cadence or us to terminate the definitive merger agreement; the outcome of any legal proceedings that may be instituted against Cadence or us; the failure to obtain the remaining necessary regulatory approvals for our merger with Cadence (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction), or to satisfy any of the other conditions to the merger on a timely basis or at all; the possibility that the anticipated benefits of the merger are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where Cadence and State Bank do business; the possibility that the merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; diversion of management’s attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the merger; Cadence’s ability to complete the acquisition and integration of State Bank successfully; and other factors that may affect ours or Cadence’s future results, 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 | ||||||||||||||||||||||||||||
| 3Q18 Financial Supplement: Table 1 | ||||||||||||||||||||||||||||
| Condensed Consolidated Financial Summary Results | ||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||
| 3Q18 change vs | ||||||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | 3Q18 | 2Q18 | 1Q18 | 4Q17 | 3Q17 | 2Q18 | 3Q17 | |||||||||||||||||||||
| Income Statement Highlights | ||||||||||||||||||||||||||||
| Interest income on loans | $ | 51,553 | $ | 50,416 | $ | 48,444 | $ | 46,926 | $ | 35,400 | $ | 1,137 | $ | 16,153 | ||||||||||||||
| Accretion income on loans | 8,154 | 6,595 | 5,946 | 10,671 | 6,520 | 1,559 | 1,634 | |||||||||||||||||||||
| Interest income on invested funds | 6,917 | 6,677 | 6,171 | 6,034 | 5,782 | 240 | 1,135 | |||||||||||||||||||||
| Total interest income | 66,624 | 63,688 | 60,561 | 63,631 | 47,702 | 2,936 | 18,922 | |||||||||||||||||||||
| Interest expense | 8,039 | 7,558 | 5,705 | 5,614 | 3,370 | 481 | 4,669 | |||||||||||||||||||||
| Net interest income | 58,585 | 56,130 | 54,856 | 58,017 | 44,332 | 2,455 | 14,253 | |||||||||||||||||||||
| Provision for loan and lease losses (organic & PNCI loans) | 2,100 | 2,556 | 2,650 | 2,050 | 1,300 | (456 | ) | 800 | ||||||||||||||||||||
| Provision for loan and lease losses (purchased credit impaired loans) | 109 | (163 | ) | 558 | 798 | (885 | ) | 272 | 994 | |||||||||||||||||||
| Provision for loan and lease losses | 2,209 | 2,393 | 3,208 | 2,848 | 415 | (184 | ) | 1,794 | ||||||||||||||||||||
| Total noninterest income | 9,738 | 10,917 | 10,461 | 10,140 | 9,682 | (1,179 | ) | 56 | ||||||||||||||||||||
| Total noninterest expense | 46,318 | 39,983 | 39,268 | 40,684 | 31,571 | 6,335 | 14,747 | |||||||||||||||||||||
| Income before income taxes | 19,796 | 24,671 | 22,841 | 24,625 | 22,028 | (4,875 | ) | (2,232 | ) | |||||||||||||||||||
| Income tax expense | 1,841 | 5,904 | 5,476 | 19,248 | 7,592 | (4,063 | ) | (5,751 | ) | |||||||||||||||||||
| Net income | $ | 17,955 | $ | 18,767 | $ | 17,365 | $ | 5,377 | $ | 14,436 | $ | (812 | ) | $ | 3,519 | |||||||||||||
| Common Share Data | ||||||||||||||||||||||||||||
| Basic earnings per share | $ | .46 | $ | .48 | $ | .45 | $ | .14 | $ | .37 | $ | (.02 | ) | $ | .09 | |||||||||||||
| Diluted earnings per share | .46 | .48 | .44 | .14 | .37 | (.02 | ) | .09 | ||||||||||||||||||||
| Cash dividends declared per share | .20 | .20 | .20 | .14 | .14 | — | .06 | |||||||||||||||||||||
| Book value per share | 17.12 | 16.79 | 16.58 | 16.45 | 16.48 | .33 | .64 | |||||||||||||||||||||
| Tangible book value per share (1) | 14.70 | 14.38 | 14.15 | 14.00 | 14.01 | .32 | .69 | |||||||||||||||||||||
| Market price per share (quarter end) | 30.18 | 33.40 | 30.01 | 29.84 | 28.65 | (3.22 | ) | 1.53 | ||||||||||||||||||||
| Common Shares Outstanding | ||||||||||||||||||||||||||||
| Common stock | 38,800,431 | 39,121,749 | 39,003,412 | 38,992,163 | 38,991,022 | (321,318 | ) | (190,591 | ) | |||||||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||||||
| Basic | 38,193,099 | 38,038,181 | 38,032,007 | 38,009,181 | 37,918,753 | 154,918 | 274,346 | |||||||||||||||||||||
| Diluted | 38,211,476 | 38,075,106 | 38,070,554 | 38,068,619 | 37,963,141 | 136,370 | 248,335 | |||||||||||||||||||||
| Average Balance Sheet Highlights | ||||||||||||||||||||||||||||
| Loans | $ | 3,640,532 | $ | 3,662,142 | $ | 3,598,543 | $ | 3,603,482 | $ | 2,893,187 | $ | (21,610 | ) | $ | 747,345 | |||||||||||||
| Assets | 4,984,791 | 4,950,453 | 4,860,730 | 4,982,451 | 4,178,731 | 34,338 | 806,060 | |||||||||||||||||||||
| Deposits | 4,255,026 | 4,200,187 | 4,084,844 | 4,248,553 | 3,437,329 | 54,839 | 817,697 | |||||||||||||||||||||
| Equity | 662,112 | 650,919 | 642,787 | 645,409 | 638,620 | 11,193 | 23,492 | |||||||||||||||||||||
| Tangible equity (1) | 568,242 | 556,403 | 547,620 | 549,564 | 550,002 | 11,839 | 18,240 | |||||||||||||||||||||
| State Bank Financial Corporation | |||||||||||||||||||||
| 3Q18 Financial Supplement: Table 1 (continued) | |||||||||||||||||||||
| Condensed Consolidated Financial Summary Results | |||||||||||||||||||||
| Quarterly (Unaudited) | |||||||||||||||||||||
| 3Q18 change vs | |||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | 3Q18 | 2Q18 | 1Q18 | 4Q17 | 3Q17 | 2Q18 | 3Q17 | ||||||||||||||
| Key Metrics (2) | |||||||||||||||||||||
| Return on average assets | 1.43 | % | 1.52 | % | 1.45 | % | .43 | % | 1.37 | % | (.09 | )% | .06 | % | |||||||
| Return on average equity | 10.76 | 11.56 | 10.96 | 3.31 | 8.97 | (.80 | ) | 1.79 | |||||||||||||
| Yield on earning assets | 5.61 | 5.47 | 5.36 | 5.39 | 4.85 | .14 | .76 | ||||||||||||||
| Cost of funds | .75 | .71 | .55 | .52 | .38 | .04 | .37 | ||||||||||||||
| Rate on interest-bearing liabilities | 1.03 | .98 | .75 | .71 | .54 | .05 | .49 | ||||||||||||||
| Net interest margin | 4.93 | 4.82 | 4.86 | 4.91 | 4.51 | .11 | .42 | ||||||||||||||
| Leverage ratio (3) | 11.85 | 11.75 | 11.69 | 11.24 | 13.37 | .10 | (1.52 | ) | |||||||||||||
| Tier I risk-based capital ratio (3) | 12.89 | 12.79 | 12.44 | 12.61 | 12.30 | .10 | .59 | ||||||||||||||
| Total risk-based capital ratio (3) | 13.66 | 13.53 | 13.14 | 13.28 | 12.91 | .13 | .75 | ||||||||||||||
| Efficiency ratio (4) | 67.79 | 59.63 | 60.12 | 59.69 | 58.45 | 8.16 | 9.34 | ||||||||||||||
| Average loans to average deposits | 85.56 | 87.19 | 88.09 | 84.82 | 84.17 | (1.63 | ) | 1.39 | |||||||||||||
| Noninterest-bearing deposits to total deposits | 27.50 | 27.59 | 26.04 | 28.07 | 27.82 | (.09 | ) | (.32 | ) | ||||||||||||
(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 | ||||||||||||||||||||||||||||||||||||||||||
| 3Q18 Financial Supplement: Table 2 | ||||||||||||||||||||||||||||||||||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||
| 3Q18 change vs | ||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | 3Q18 | 2Q18 | 1Q18 | 4Q17 | 3Q17 | 2Q18 | 3Q17 | |||||||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||||||||||||
| Cash and amounts due from depository institutions | $ | 16,273 | $ | 12,974 | $ | 13,113 | $ | 17,438 | $ | 14,235 | $ | 3,299 | $ | 2,038 | ||||||||||||||||||||||||||||
| Interest-bearing deposits in other financial institutions | 186,524 | 215,360 | 59,620 | 211,142 | 251,115 | (28,836 | ) | (64,591 | ) | |||||||||||||||||||||||||||||||||
| Federal funds sold | 5,130 | 9,957 | 9,000 | 2,297 | 16,889 | (4,827 | ) | (11,759 | ) | |||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 207,927 | 238,291 | 81,733 | 230,877 | 282,239 | (30,364 | ) | (74,312 | ) | |||||||||||||||||||||||||||||||||
| Equity securities | 1,515 | 1,515 | 1,515 | 1,515 | 1,515 | — | — | |||||||||||||||||||||||||||||||||||
| Debt securities available-for-sale | 772,369 | 835,670 | 863,697 | 872,455 | 919,248 | (63,301 | ) | (146,879 | ) | |||||||||||||||||||||||||||||||||
| Debt securities held-to-maturity | 13,000 | 16,742 | 27,558 | 32,852 | 57,867 | (3,742 | ) | (44,867 | ) | |||||||||||||||||||||||||||||||||
| Loans | 3,637,334 | 3,605,273 | 3,618,521 | 3,532,193 | 3,572,790 | 32,061 | 64,544 | |||||||||||||||||||||||||||||||||||
| Allowance for loan and lease losses | (34,789 | ) | (33,335 | ) | (31,317 | ) | (28,750 | ) | (26,842 | ) | (1,454 | ) | (7,947 | ) | ||||||||||||||||||||||||||||
| Loans, net | 3,602,545 | 3,571,938 | 3,587,204 | 3,503,443 | 3,545,948 | 30,607 | 56,597 | |||||||||||||||||||||||||||||||||||
| Loans held-for-sale | 30,676 | 55,096 | 47,482 | 36,211 | 47,743 | (24,420 | ) | (17,067 | ) | |||||||||||||||||||||||||||||||||
| Other real estate owned | 5,442 | 5,012 | 4,207 | 895 | 1,271 | 430 | 4,171 | |||||||||||||||||||||||||||||||||||
| Premises and equipment, net | 56,007 | 56,965 | 52,410 | 51,794 | 52,120 | (958 | ) | 3,887 | ||||||||||||||||||||||||||||||||||
| Goodwill | 84,564 | 84,564 | 84,564 | 84,564 | 84,564 | — | — | |||||||||||||||||||||||||||||||||||
| Other intangibles, net | 9,074 | 9,729 | 10,384 | 11,034 | 11,755 | (655 | ) | (2,681 | ) | |||||||||||||||||||||||||||||||||
| SBA servicing rights | 3,842 | 3,989 | 4,003 | 4,069 | 3,950 | (147 | ) | (108 | ) | |||||||||||||||||||||||||||||||||
| Bank-owned life insurance | 68,772 | 68,231 | 67,768 | 67,313 | 66,846 | 541 | 1,926 | |||||||||||||||||||||||||||||||||||
| Other assets | 68,344 | 64,587 | 59,772 | 61,560 | 73,417 | 3,757 | (5,073 | ) | ||||||||||||||||||||||||||||||||||
| Total assets | $ | 4,924,077 | $ | 5,012,329 | $ | 4,892,297 | $ | 4,958,582 | $ | 5,148,483 | $ | (88,252 | ) | $ | (224,406 | ) | ||||||||||||||||||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | $ | 1,151,511 | $ | 1,187,028 | $ | 1,089,579 | $ | 1,191,106 | $ | 1,179,698 | $ | (35,517 | ) | $ | (28,187 | ) | ||||||||||||||||||||||||||
| Interest-bearing deposits | 3,035,403 | 3,115,676 | 3,094,853 | 3,052,029 | 3,061,387 | (80,273 | ) | (25,984 | ) | |||||||||||||||||||||||||||||||||
| Total deposits | 4,186,914 | 4,302,704 | 4,184,432 | 4,243,135 | 4,241,085 | (115,790 | ) | (54,171 | ) | |||||||||||||||||||||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 33,621 | 13,525 | 9,565 | 25,209 | 25,499 | 20,096 | 8,122 | |||||||||||||||||||||||||||||||||||
| FHLB borrowings | — | — | 15,000 | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Notes payable | — | 398 | 398 | 398 | 398 | (398 | ) | (398 | ) | |||||||||||||||||||||||||||||||||
| Other liabilities | 39,365 | 38,783 | 36,248 | 48,289 | 238,911 | 582 | (199,546 | ) | ||||||||||||||||||||||||||||||||||
| Total liabilities | 4,259,900 | 4,355,410 | 4,245,643 | 4,317,031 | 4,505,893 | (95,510 | ) | (245,993 | ) | |||||||||||||||||||||||||||||||||
| Total shareholders’ equity | 664,177 | 656,919 | 646,654 | 641,551 | 642,590 | 7,258 | 21,587 | |||||||||||||||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 4,924,077 | $ | 5,012,329 | $ | 4,892,297 | $ | 4,958,582 | $ | 5,148,483 | $ | (88,252 | ) | $ | (224,406 | ) | ||||||||||||||||||||||||||
| Capital Ratios (1) | ||||||||||||||||||||||||||||||||||||||||||
| Average equity to average assets | 13.28 | % | 13.15 | % | 13.22 | % | 12.95 | % | 15.28 | % | .13 | % | (2.00 | )% | ||||||||||||||||||||||||||||
| Leverage ratio | 11.85 | 11.75 | 11.69 | 11.24 | 13.37 | .10 | (1.52 | ) | ||||||||||||||||||||||||||||||||||
| CET1 risk-based capital ratio | 12.89 | 12.79 | 12.44 | 12.61 | 12.30 | .10 | .59 | |||||||||||||||||||||||||||||||||||
| Tier I risk-based capital ratio | 12.89 | 12.79 | 12.44 | 12.61 | 12.30 | .10 | .59 | |||||||||||||||||||||||||||||||||||
| Total risk-based capital ratio | 13.66 | 13.53 | 13.14 | 13.28 | 12.91 | .13 | .75 | |||||||||||||||||||||||||||||||||||
(1) Current period capital ratios are estimated as of the date of this earning release.
| State Bank Financial Corporation | ||||||||||||||||||||||||||||||||||||||||||
| 3Q18 Financial Supplement: Table 3 | ||||||||||||||||||||||||||||||||||||||||||
| Condensed Consolidated Income Statements | ||||||||||||||||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||
| 3Q18 change vs | ||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | 3Q18 | 2Q18 | 1Q18 | 4Q17 | 3Q17 | 2Q18 | 3Q17 | |||||||||||||||||||||||||||||||||||
| Net Interest Income: | ||||||||||||||||||||||||||||||||||||||||||
| Interest income on loans | $ | 51,553 | $ | 50,416 | $ | 48,444 | $ | 46,926 | $ | 35,400 | $ | 1,137 | $ | 16,153 | ||||||||||||||||||||||||||||
| Accretion income on loans | 8,154 | 6,595 | 5,946 | 10,671 | 6,520 | 1,559 | 1,634 | |||||||||||||||||||||||||||||||||||
| Interest income on invested funds | 6,917 | 6,677 | 6,171 | 6,034 | 5,782 | 240 | 1,135 | |||||||||||||||||||||||||||||||||||
| Interest expense | 8,039 | 7,558 | 5,705 | 5,614 | 3,370 | 481 | 4,669 | |||||||||||||||||||||||||||||||||||
| Net interest income | 58,585 | 56,130 | 54,856 | 58,017 | 44,332 | 2,455 | 14,253 | |||||||||||||||||||||||||||||||||||
| Provision for loan and lease losses (organic & PNCI loans) | 2,100 | 2,556 | 2,650 | 2,050 | 1,300 | (456 | ) | 800 | ||||||||||||||||||||||||||||||||||
| Provision for loan and lease losses (purchased credit impaired loans) | 109 | (163 | ) | 558 | 798 | (885 | ) | 272 | 994 | |||||||||||||||||||||||||||||||||
| Provision for loan and lease losses | 2,209 | 2,393 | 3,208 | 2,848 | 415 | (184 | ) | 1,794 | ||||||||||||||||||||||||||||||||||
| Net interest income after provision for loan and lease losses | 56,376 | 53,737 | 51,648 | 55,169 | 43,917 | 2,639 | 12,459 | |||||||||||||||||||||||||||||||||||
| Noninterest Income: | ||||||||||||||||||||||||||||||||||||||||||
| Service charges on deposits | 1,572 | 1,462 | 1,625 | 1,678 | 1,575 | 110 | (3 | ) | ||||||||||||||||||||||||||||||||||
| Mortgage banking income | 1,818 | 3,125 | 2,925 | 2,558 | 2,793 | (1,307 | ) | (975 | ) | |||||||||||||||||||||||||||||||||
| Payroll and insurance income | 1,667 | 1,608 | 1,760 | 1,698 | 1,487 | 59 | 180 | |||||||||||||||||||||||||||||||||||
| SBA income | 1,401 | 1,252 | 1,192 | 1,866 | 1,464 | 149 | (63 | ) | ||||||||||||||||||||||||||||||||||
| ATM income | 909 | 919 | 870 | 860 | 826 | (10 | ) | 83 | ||||||||||||||||||||||||||||||||||
| Bank-owned life insurance income | 541 | 463 | 455 | 467 | 526 | 78 | 15 | |||||||||||||||||||||||||||||||||||
| Gain (loss) on sale of investment securities | 181 | 250 | — | (1,481 | ) | 3 | (69 | ) | 178 | |||||||||||||||||||||||||||||||||
| Other | 1,649 | 1,838 | 1,634 | 2,494 | 1,008 | (189 | ) | 641 | ||||||||||||||||||||||||||||||||||
| Total noninterest income | 9,738 | 10,917 | 10,461 | 10,140 | 9,682 | (1,179 | ) | 56 | ||||||||||||||||||||||||||||||||||
| Noninterest Expense: | ||||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 23,166 | 24,279 | 26,042 | 25,089 | 20,701 | (1,113 | ) | 2,465 | ||||||||||||||||||||||||||||||||||
| Occupancy and equipment | 3,240 | 3,421 | 3,496 | 3,576 | 3,187 | (181 | ) | 53 | ||||||||||||||||||||||||||||||||||
| Data processing | 2,808 | 2,696 | 2,896 | 2,596 | 2,587 | 112 | 221 | |||||||||||||||||||||||||||||||||||
| Legal and professional fees | 1,187 | 967 | 739 | 973 | 700 | 220 | 487 | |||||||||||||||||||||||||||||||||||
| Merger-related expenses | 10,967 | 2,601 | 1,264 | 2,588 | 135 | 8,366 | 10,832 | |||||||||||||||||||||||||||||||||||
| Marketing | 744 | 940 | 425 | 693 | 342 | (196 | ) | 402 | ||||||||||||||||||||||||||||||||||
| Federal deposit insurance premiums and other regulatory fees | 528 | 589 | 500 | 498 | 407 | (61 | ) | 121 | ||||||||||||||||||||||||||||||||||
| Loan collection costs and OREO activity | (204 | ) | (116 | ) | 166 | 358 | 181 | (88 | ) | (385 | ) | |||||||||||||||||||||||||||||||
| Amortization of intangibles | 655 | 654 | 651 | 721 | 701 | 1 | (46 | ) | ||||||||||||||||||||||||||||||||||
| Other | 3,227 | 3,952 | 3,089 | 3,592 | 2,630 | (725 | ) | 597 | ||||||||||||||||||||||||||||||||||
| Total noninterest expense | 46,318 | 39,983 | 39,268 | 40,684 | 31,571 | 6,335 | 14,747 | |||||||||||||||||||||||||||||||||||
| Income Before Income Taxes | 19,796 | 24,671 | 22,841 | 24,625 | 22,028 | (4,875 | ) | (2,232 | ) | |||||||||||||||||||||||||||||||||
| Income tax expense | 1,841 | 5,904 | 5,476 | 19,248 | 7,592 | (4,063 | ) | (5,751 | ) | |||||||||||||||||||||||||||||||||
| Net Income | $ | 17,955 | $ | 18,767 | $ | 17,365 | $ | 5,377 | $ | 14,436 | $ | (812 | ) | $ | 3,519 | |||||||||||||||||||||||||||
| Net income allocated to participating securities | $ | 400 | $ | 509 | $ | 435 | $ | 136 | $ | 389 | $ | (109 | ) | $ | 11 | |||||||||||||||||||||||||||
| Net income allocated to common shareholders | 17,555 | 18,258 | 16,930 | 5,241 | 14,047 | (703 | ) | 3,508 | ||||||||||||||||||||||||||||||||||
| Effective Tax Rate | 9.30 | % | 23.93 | % | 23.97 | % | 78.16 | % | 34.47 | % | (14.63 | )% | (25.17 | )% | ||||||||||||||||||||||||||||
| Earnings Per Share | ||||||||||||||||||||||||||||||||||||||||||
| Basic | $ | .46 | $ | .48 | $ | .45 | $ | .14 | $ | .37 | $ | (.02 | ) | $ | .09 | |||||||||||||||||||||||||||
| Diluted | .46 | .48 | .44 | .14 | .37 | (.02 | ) | .09 | ||||||||||||||||||||||||||||||||||
| Weighted Average Shares Outstanding | ||||||||||||||||||||||||||||||||||||||||||
| Basic | 38,193,099 | 38,038,181 | 38,032,007 | 38,009,181 | 37,918,753 | 154,918 | 274,346 | |||||||||||||||||||||||||||||||||||
| Diluted | 38,211,476 | 38,075,106 | 38,070,554 | 38,068,619 | 37,963,141 | 136,370 | 248,335 | |||||||||||||||||||||||||||||||||||
| State Bank Financial Corporation | ||||||||||||||||||||||||||||||
| 3Q18 Financial Supplement: Table 4 | ||||||||||||||||||||||||||||||
| Condensed Consolidated Income Statements | ||||||||||||||||||||||||||||||
| Year to Date (Unaudited) | ||||||||||||||||||||||||||||||
| Nine Months Ended September 30 | ||||||||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | 2018 | 2017 | Change | |||||||||||||||||||||||||||
| Net Interest Income: | ||||||||||||||||||||||||||||||
| Interest income on loans | $ | 150,413 | $ | 104,332 | $ | 46,081 | ||||||||||||||||||||||||
| Accretion income on loans | 20,695 | 23,425 | (2,730 | ) | ||||||||||||||||||||||||||
| Interest income on invested funds | 19,765 | 16,989 | 2,776 | |||||||||||||||||||||||||||
| Interest expense | 21,302 | 9,978 | 11,324 | |||||||||||||||||||||||||||
| Net interest income | 169,571 | 134,768 | 34,803 | |||||||||||||||||||||||||||
| Provision for loan and lease losses (organic & PNCI loans) | 7,306 | 4,131 | 3,175 | |||||||||||||||||||||||||||
| Provision for loan and lease losses (purchased credit impaired loans) | 504 | (869 | ) | 1,373 | ||||||||||||||||||||||||||
| Provision for loan and lease losses | 7,810 | 3,262 | 4,548 | |||||||||||||||||||||||||||
| Net interest income after provision for loan and lease losses | 161,761 | 131,506 | 30,255 | |||||||||||||||||||||||||||
| Noninterest Income: | ||||||||||||||||||||||||||||||
| Service charges on deposits | 4,659 | 4,513 | 146 | |||||||||||||||||||||||||||
| Mortgage banking income | 7,868 | 8,783 | (915 | ) | ||||||||||||||||||||||||||
| Payroll and insurance income | 5,035 | 4,400 | 635 | |||||||||||||||||||||||||||
| SBA income | 3,845 | 4,625 | (780 | ) | ||||||||||||||||||||||||||
| ATM income | 2,698 | 2,522 | 176 | |||||||||||||||||||||||||||
| Bank-owned life insurance income | 1,459 | 1,475 | (16 | ) | ||||||||||||||||||||||||||
| Gain on sale of investment securities | 431 | 28 | 403 | |||||||||||||||||||||||||||
| Other | 5,121 | 3,271 | 1,850 | |||||||||||||||||||||||||||
| Total noninterest income | 31,116 | 29,617 | 1,499 | |||||||||||||||||||||||||||
| Noninterest Expense: | ||||||||||||||||||||||||||||||
| Salaries and employee benefits | 73,487 | 63,267 | 10,220 | |||||||||||||||||||||||||||
| Occupancy and equipment | 10,157 | 9,796 | 361 | |||||||||||||||||||||||||||
| Data processing | 8,400 | 7,608 | 792 | |||||||||||||||||||||||||||
| Legal and professional fees | 2,893 | 3,403 | (510 | ) | ||||||||||||||||||||||||||
| Merger-related expenses | 14,832 | 2,742 | 12,090 | |||||||||||||||||||||||||||
| Marketing | 2,109 | 1,409 | 700 | |||||||||||||||||||||||||||
| Federal deposit insurance premiums and other regulatory fees | 1,617 | 1,202 | 415 | |||||||||||||||||||||||||||
| Loan collection costs and OREO activity | (154 | ) | (1,074 | ) | 920 | |||||||||||||||||||||||||
| Amortization of intangibles | 1,960 | 2,094 | (134 | ) | ||||||||||||||||||||||||||
| Other | 10,268 | 7,686 | 2,582 | |||||||||||||||||||||||||||
| Total noninterest expense | 125,569 | 98,133 | 27,436 | |||||||||||||||||||||||||||
| Income Before Income Taxes | 67,308 | 62,990 | 4,318 | |||||||||||||||||||||||||||
| Income tax expense | 13,221 | 21,793 | (8,572 | ) | ||||||||||||||||||||||||||
| Net Income | $ | 54,087 | $ | 41,197 | $ | 12,890 | ||||||||||||||||||||||||
| Net income allocated to participating securities | $ | 1,342 | $ | 1,095 | $ | 247 | ||||||||||||||||||||||||
| Net income allocated to common shareholders | 52,745 | 40,102 | 12,643 | |||||||||||||||||||||||||||
| Earnings Per Share | ||||||||||||||||||||||||||||||
| Basic | $ | 1.38 | $ | 1.06 | $ | .32 | ||||||||||||||||||||||||
| Diluted | 1.38 | 1.06 | .32 | |||||||||||||||||||||||||||
| Weighted Average Shares Outstanding | ||||||||||||||||||||||||||||||
| Basic | 38,088,378 | 37,894,385 | 193,993 | |||||||||||||||||||||||||||
| Diluted | 38,110,938 | 37,943,971 | 166,967 | |||||||||||||||||||||||||||
| State Bank Financial Corporation | ||||||||||||||||||||||||||||||||||||||||||
| 3Q18 Financial Supplement: Table 5 | ||||||||||||||||||||||||||||||||||||||||||
| Condensed Consolidated Composition of Loans and Deposits at Period Ends | ||||||||||||||||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||
| 3Q18 change vs | ||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | 3Q18 | 2Q18 | 1Q18 | 4Q17 | 3Q17 | 2Q18 | 3Q17 | |||||||||||||||||||||||||||||||||||
| Composition of Loans | ||||||||||||||||||||||||||||||||||||||||||
| Organic loans (1): | ||||||||||||||||||||||||||||||||||||||||||
| Construction, land & land development | $ | 480,530 | $ | 454,625 | $ | 442,942 | $ | 412,540 | $ | 460,368 | $ | 25,905 | $ | 20,162 | ||||||||||||||||||||||||||||
| Other commercial real estate | 939,258 | 947,704 | 941,581 | 949,594 | 915,727 | (8,446 | ) | 23,531 | ||||||||||||||||||||||||||||||||||
| Total commercial real estate | 1,419,788 | 1,402,329 | 1,384,523 | 1,362,134 | 1,376,095 | 17,459 | 43,693 | |||||||||||||||||||||||||||||||||||
| Residential real estate | 238,292 | 222,886 | 208,960 | 196,225 | 175,258 | 15,406 | 63,034 | |||||||||||||||||||||||||||||||||||
| Owner-occupied real estate | 275,095 | 270,053 | 253,059 | 260,273 | 261,784 | 5,042 | 13,311 | |||||||||||||||||||||||||||||||||||
| Commercial, financial & agricultural | 758,897 | 666,572 | 562,566 | 430,205 | 363,551 | 92,325 | 395,346 | |||||||||||||||||||||||||||||||||||
| Leases | 30,410 | 36,863 | 43,787 | 52,396 | 66,765 | (6,453 | ) | (36,355 | ) | |||||||||||||||||||||||||||||||||
| Consumer | 64,361 | 65,019 | 62,423 | 64,610 | 61,200 | (658 | ) | 3,161 | ||||||||||||||||||||||||||||||||||
| Total organic loans | 2,786,843 | 2,663,722 | 2,515,318 | 2,365,843 | 2,304,653 | 123,121 | 482,190 | |||||||||||||||||||||||||||||||||||
| Purchased non-credit impaired loans(2): | ||||||||||||||||||||||||||||||||||||||||||
| Construction, land & land development | 13,284 | 14,282 | 24,352 | 25,908 | 30,670 | (998 | ) | (17,386 | ) | |||||||||||||||||||||||||||||||||
| Other commercial real estate | 186,556 | 194,995 | 226,893 | 218,660 | 234,486 | (8,439 | ) | (47,930 | ) | |||||||||||||||||||||||||||||||||
| Total commercial real estate | 199,840 | 209,277 | 251,245 | 244,568 | 265,156 | (9,437 | ) | (65,316 | ) | |||||||||||||||||||||||||||||||||
| Residential real estate | 61,141 | 72,817 | 82,416 | 96,529 | 112,244 | (11,676 | ) | (51,103 | ) | |||||||||||||||||||||||||||||||||
| Owner-occupied real estate | 73,466 | 82,500 | 94,900 | 118,294 | 125,438 | (9,034 | ) | (51,972 | ) | |||||||||||||||||||||||||||||||||
| Commercial, financial & agricultural | 390,097 | 426,992 | 515,327 | 529,184 | 558,992 | (36,895 | ) | (168,895 | ) | |||||||||||||||||||||||||||||||||
| Consumer | 1,197 | 1,503 | 1,791 | 2,161 | 2,647 | (306 | ) | (1,450 | ) | |||||||||||||||||||||||||||||||||
| Total purchased non-credit impaired loans | 725,741 | 793,089 | 945,679 | 990,736 | 1,064,477 | (67,348 | ) | (338,736 | ) | |||||||||||||||||||||||||||||||||
| Purchased credit impaired loans (3): | ||||||||||||||||||||||||||||||||||||||||||
| Construction, land & land development | 6,281 | 13,227 | 12,802 | 13,545 | 16,918 | (6,946 | ) | (10,637 | ) | |||||||||||||||||||||||||||||||||
| Other commercial real estate | 60,910 | 73,607 | 77,838 | 86,748 | 102,934 | (12,697 | ) | (42,024 | ) | |||||||||||||||||||||||||||||||||
| Total commercial real estate | 67,191 | 86,834 | 90,640 | 100,293 | 119,852 | (19,643 | ) | (52,661 | ) | |||||||||||||||||||||||||||||||||
| Residential real estate | 30,037 | 32,087 | 36,747 | 40,332 | 42,190 | (2,050 | ) | (12,153 | ) | |||||||||||||||||||||||||||||||||
| Owner-occupied real estate | 17,145 | 18,019 | 18,593 | 20,803 | 26,210 | (874 | ) | (9,065 | ) | |||||||||||||||||||||||||||||||||
| Commercial, financial & agricultural | 10,300 | 11,440 | 11,436 | 14,051 | 15,139 | (1,140 | ) | (4,839 | ) | |||||||||||||||||||||||||||||||||
| Consumer | 77 | 82 | 108 | 135 | 269 | (5 | ) | (192 | ) | |||||||||||||||||||||||||||||||||
| Total purchased credit impaired loans | 124,750 | 148,462 | 157,524 | 175,614 | 203,660 | (23,712 | ) | (78,910 | ) | |||||||||||||||||||||||||||||||||
| Total loans | $ | 3,637,334 | $ | 3,605,273 | $ | 3,618,521 | $ | 3,532,193 | $ | 3,572,790 | $ | 32,061 | $ | 64,544 | ||||||||||||||||||||||||||||
| Composition of Deposits | ||||||||||||||||||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | $ | 1,151,511 | $ | 1,187,028 | $ | 1,089,579 | $ | 1,191,106 | $ | 1,179,698 | $ | (35,517 | ) | $ | (28,187 | ) | ||||||||||||||||||||||||||
| Interest-bearing transaction accounts | 679,599 | 674,205 | 633,542 | 688,150 | 619,156 | 5,394 | 60,443 | |||||||||||||||||||||||||||||||||||
| Savings and money market deposits | 1,527,399 | 1,587,204 | 1,602,908 | 1,626,238 | 1,680,922 | (59,805 | ) | (153,523 | ) | |||||||||||||||||||||||||||||||||
| Time deposits | 707,950 | 698,361 | 713,869 | 715,133 | 731,416 | 9,589 | (23,466 | ) | ||||||||||||||||||||||||||||||||||
| Brokered and wholesale time deposits | 120,455 | 155,906 | 144,534 | 22,508 | 29,893 | (35,451 | ) | 90,562 | ||||||||||||||||||||||||||||||||||
| Total deposits | $ | 4,186,914 | $ | 4,302,704 | $ | 4,184,432 | $ | 4,243,135 | $ | 4,241,085 | $ | (115,790 | ) | $ | (54,171 | ) | ||||||||||||||||||||||||||
(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, S Bank, and AloStar Bank of Commerce.
(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 | ||||||||||||||||||||||||||||||||||||||||||
| 3Q18 Financial Supplement: Table 6 | ||||||||||||||||||||||||||||||||||||||||||
| Condensed Consolidated Asset Quality Data | ||||||||||||||||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||
| 3Q18 change vs | ||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | 3Q18 | 2Q18 | 1Q18 | 4Q17 | 3Q17 | 2Q18 | 3Q17 | |||||||||||||||||||||||||||||||||||
| Allowance for loan and lease losses on organic loans | ||||||||||||||||||||||||||||||||||||||||||
| Beginning Balance | $ | 26,366 | $ | 24,882 | $ | 24,039 | $ | 22,709 | $ | 22,560 | $ | 1,484 | $ | 3,806 | ||||||||||||||||||||||||||||
| Charge-offs | (326 | ) | (171 | ) | (664 | ) | (474 | ) | (912 | ) | (155 | ) | 586 | |||||||||||||||||||||||||||||
| Recoveries | 87 | 70 | 133 | 77 | 106 | 17 | (19 | ) | ||||||||||||||||||||||||||||||||||
| Net (charge-offs) recoveries | (239 | ) | (101 | ) | (531 | ) | (397 | ) | (806 | ) | (138 | ) | 567 | |||||||||||||||||||||||||||||
| Provision for loan and lease losses | 1,300 | 1,585 | 1,374 | 1,727 | 955 | (285 | ) | 345 | ||||||||||||||||||||||||||||||||||
| Ending Balance | $ | 27,427 | $ | 26,366 | $ | 24,882 | $ | 24,039 | $ | 22,709 | $ | 1,061 | $ | 4,718 | ||||||||||||||||||||||||||||
| Allowance for loan and lease losses on purchased non-credit impaired loans | ||||||||||||||||||||||||||||||||||||||||||
| Beginning Balance | $ | 2,981 | $ | 2,249 | $ | 995 | $ | 900 | $ | 667 | $ | 732 | $ | 2,314 | ||||||||||||||||||||||||||||
| Charge-offs | (451 | ) | (285 | ) | (40 | ) | (273 | ) | (152 | ) | (166 | ) | (299 | ) | ||||||||||||||||||||||||||||
| Recoveries | 59 | 46 | 18 | 45 | 40 | 13 | 19 | |||||||||||||||||||||||||||||||||||
| Net (charge-offs) recoveries | (392 | ) | (239 | ) | (22 | ) | (228 | ) | (112 | ) | (153 | ) | (280 | ) | ||||||||||||||||||||||||||||
| Provision for loan and lease losses | 800 | 971 | 1,276 | 323 | 345 | (171 | ) | 455 | ||||||||||||||||||||||||||||||||||
| Ending Balance | $ | 3,389 | $ | 2,981 | $ | 2,249 | $ | 995 | $ | 900 | $ | 408 | $ | 2,489 | ||||||||||||||||||||||||||||
| Allowance for loan and lease losses on purchased credit impaired loans | ||||||||||||||||||||||||||||||||||||||||||
| Beginning Balance | $ | 3,988 | $ | 4,186 | $ | 3,716 | $ | 3,233 | $ | 4,761 | $ | (198 | ) | $ | (773 | ) | ||||||||||||||||||||||||||
| Charge-offs | (124 | ) | (35 | ) | (88 | ) | (315 | ) | (643 | ) | (89 | ) | 519 | |||||||||||||||||||||||||||||
| Recoveries | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Net (charge-offs) recoveries | (124 | ) | (35 | ) | (88 | ) | (315 | ) | (643 | ) | (89 | ) | 519 | |||||||||||||||||||||||||||||
| Provision for loan and lease losses | 109 | (163 | ) | 558 | 798 | (885 | ) | 272 | 994 | |||||||||||||||||||||||||||||||||
| Ending Balance | $ | 3,973 | $ | 3,988 | $ | 4,186 | $ | 3,716 | $ | 3,233 | $ | (15 | ) | $ | 740 | |||||||||||||||||||||||||||
| Nonperforming organic assets | ||||||||||||||||||||||||||||||||||||||||||
| Nonaccrual loans | $ | 10,648 | $ | 8,119 | $ | 9,186 | $ | 6,656 | $ | 5,482 | $ | 2,529 | $ | 5,166 | ||||||||||||||||||||||||||||
| Accruing TDRs | — | 490 | 556 | 566 | — | (490 | ) | — | ||||||||||||||||||||||||||||||||||
| Total nonperforming organic loans | 10,648 | 8,609 | 9,742 | 7,222 | 5,482 | 2,039 | 5,166 | |||||||||||||||||||||||||||||||||||
| Other real estate owned | 3,255 | 4,135 | 3,231 | 153 | — | (880 | ) | 3,255 | ||||||||||||||||||||||||||||||||||
| Total nonperforming organic assets | $ | 13,903 | $ | 12,744 | $ | 12,973 | $ | 7,375 | $ | 5,482 | $ | 1,159 | $ | 8,421 | ||||||||||||||||||||||||||||
| Nonperforming purchased non-credit impaired assets | ||||||||||||||||||||||||||||||||||||||||||
| Nonaccrual loans | $ | 22,207 | $ | 22,585 | $ | 6,356 | $ | 5,821 | $ | 5,615 | $ | (378 | ) | $ | 16,592 | |||||||||||||||||||||||||||
| Accruing TDRs | 2,756 | 2,760 | 2,769 | — | — | (4 | ) | 2,756 | ||||||||||||||||||||||||||||||||||
| Total nonperforming PNCI loans | 24,963 | 25,345 | 9,125 | 5,821 | 5,615 | (382 | ) | 19,348 | ||||||||||||||||||||||||||||||||||
| Other real estate owned | 1,261 | — | — | — | — | 1,261 | 1,261 | |||||||||||||||||||||||||||||||||||
| Total nonperforming PNCI assets | $ | 26,224 | $ | 25,345 | $ | 9,125 | $ | 5,821 | $ | 5,615 | $ | 879 | $ | 20,609 | ||||||||||||||||||||||||||||
| Ratios for organic assets | ||||||||||||||||||||||||||||||||||||||||||
| Annualized QTD charge-offs (recoveries) on organic loans to average organic loans | .03 | % | .02 | % | .09 | % | .07 | % | .14 | % | .01 | % | (.11 | )% | ||||||||||||||||||||||||||||
| Nonperforming organic loans to organic loans | .38 | .32 | .39 | .31 | .24 | .06 | .14 | |||||||||||||||||||||||||||||||||||
| Nonperforming organic assets to organic loans + OREO | .50 | .48 | .52 | .31 | .24 | .02 | .26 | |||||||||||||||||||||||||||||||||||
| Past due organic loans to organic loans | .34 | .16 | .22 | .20 | .12 | .18 | .22 | |||||||||||||||||||||||||||||||||||
| Allowance for loan and lease losses on organic loans to organic loans | .98 | .99 | .99 | 1.02 | .99 | (.01 | ) | (.01 | ) | |||||||||||||||||||||||||||||||||
| State Bank Financial Corporation | |||||||||||||||||||||||||||||||||||
| 3Q18 Financial Supplement: Table 6 (continued) | |||||||||||||||||||||||||||||||||||
| Condensed Consolidated Asset Quality Data | |||||||||||||||||||||||||||||||||||
| Quarterly (Unaudited) | |||||||||||||||||||||||||||||||||||
| 3Q18 change vs | |||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | 3Q18 | 2Q18 | 1Q18 | 4Q17 | 3Q17 | 2Q18 | 3Q17 | ||||||||||||||||||||||||||||
| Ratios for purchased non-credit impaired loans | |||||||||||||||||||||||||||||||||||
| Annualized QTD charge-offs (recoveries) on PNCI loans to average PNCI loans | .20 | % | .11 | % | .01 | % | .09 | % | .10 | % | .09 | % | .10 | % | |||||||||||||||||||||
| Nonperforming PNCI loans to PNCI loans | 3.44 | 3.20 | .96 | .59 | .53 | .24 | 2.91 | ||||||||||||||||||||||||||||
| Nonperforming PNCI assets to PNCI loans + OREO | 3.61 | 3.20 | .96 | .59 | .53 | .41 | 3.08 | ||||||||||||||||||||||||||||
| Past due PNCI loans to PNCI loans | 2.73 | .36 | .45 | .40 | .48 | 2.37 | 2.25 | ||||||||||||||||||||||||||||
| Allowance for loan and lease losses on PNCI loans to PNCI loans | .47 | .38 | .24 | .10 | .08 | .09 | .39 | ||||||||||||||||||||||||||||
| Ratios for purchased credit impaired loans (1) | |||||||||||||||||||||||||||||||||||
| Annualized QTD charge-offs (recoveries) on PCI loans to average PCI loans | .35 | % | .09 | % | .21 | % | .66 | % | 1.95 | % | .26 | % | (1.60 | )% | |||||||||||||||||||||
| Past due PCI loans to PCI loans | 6.68 | 5.95 | 6.47 | 5.84 | 8.12 | .73 | (1.44 | ) | |||||||||||||||||||||||||||
| Allowance for loan and lease losses on PCI loans to PCI loans | 3.18 | 2.69 | 2.66 | 2.12 | 1.59 | .49 | 1.59 | ||||||||||||||||||||||||||||
(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 | ||||||||||||||||||||||||||||||||||||||||||
| 3Q18 Financial Supplement: Table 7 | ||||||||||||||||||||||||||||||||||||||||||
| Condensed Consolidated Average Balances and Yield Analysis | ||||||||||||||||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||
| 3Q18 change vs | ||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | 3Q18 | 2Q18 | 1Q18 | 4Q17 | 3Q17 | 2Q18 | 3Q17 | |||||||||||||||||||||||||||||||||||
| Average Balances | ||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits in other financial institutions and federal funds sold | $ | 244,697 | $ | 131,506 | $ | 93,692 | $ | 168,223 | $ | 108,546 | $ | 113,191 | $ | 136,151 | ||||||||||||||||||||||||||||
| Investment securities | 830,282 | 880,667 | 893,685 | 924,933 | 913,898 | (50,385 | ) | (83,616 | ) | |||||||||||||||||||||||||||||||||
| Loans, excluding purchased credit impaired (1) | 3,499,883 | 3,507,613 | 3,430,599 | 3,413,159 | 2,762,479 | (7,730 | ) | 737,404 | ||||||||||||||||||||||||||||||||||
| Purchased credit impaired loans | 140,649 | 154,529 | 167,944 | 190,323 | 130,708 | (13,880 | ) | 9,941 | ||||||||||||||||||||||||||||||||||
| Total earning assets | 4,715,511 | 4,674,315 | 4,585,920 | 4,696,638 | 3,915,631 | 41,196 | 799,880 | |||||||||||||||||||||||||||||||||||
| Total nonearning assets | 269,280 | 276,138 | 274,810 | 285,813 | 263,100 | (6,858 | ) | 6,180 | ||||||||||||||||||||||||||||||||||
| Total assets | 4,984,791 | 4,950,453 | 4,860,730 | 4,982,451 | 4,178,731 | 34,338 | 806,060 | |||||||||||||||||||||||||||||||||||
| Interest-bearing transaction accounts | 650,995 | 627,800 | 626,298 | 664,938 | 580,090 | 23,195 | 70,905 | |||||||||||||||||||||||||||||||||||
| Savings & money market deposits | 1,570,062 | 1,568,638 | 1,594,724 | 1,685,292 | 1,383,326 | 1,424 | 186,736 | |||||||||||||||||||||||||||||||||||
| Time deposits | 704,879 | 704,850 | 715,514 | 724,578 | 420,192 | 29 | 284,687 | |||||||||||||||||||||||||||||||||||
| Brokered and wholesale time deposits | 139,270 | 149,956 | 65,749 | 25,911 | 49,675 | (10,686 | ) | 89,595 | ||||||||||||||||||||||||||||||||||
| Other borrowings | 23,689 | 55,344 | 85,788 | 35,353 | 57,988 | (31,655 | ) | (34,299 | ) | |||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 3,088,895 | 3,106,588 | 3,088,073 | 3,136,072 | 2,491,271 | (17,693 | ) | 597,624 | ||||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 1,189,820 | 1,148,943 | 1,082,559 | 1,147,834 | 1,004,046 | 40,877 | 185,774 | |||||||||||||||||||||||||||||||||||
| Other liabilities | 43,964 | 44,003 | 47,311 | 53,136 | 44,794 | (39 | ) | (830 | ) | |||||||||||||||||||||||||||||||||
| Shareholders’ equity | 662,112 | 650,919 | 642,787 | 645,409 | 638,620 | 11,193 | 23,492 | |||||||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | 4,984,791 | 4,950,453 | 4,860,730 | 4,982,451 | 4,178,731 | 34,338 | 806,060 | |||||||||||||||||||||||||||||||||||
| Interest Margins (2) | ||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits in other financial institutions and federal funds sold | 1.76 | % | 1.23 | % | .80 | % | .86 | % | .80 | % | .53 | % | .96 | % | ||||||||||||||||||||||||||||
| Investment securities, tax-equivalent basis | 2.79 | 2.86 | 2.72 | 2.43 | 2.42 | (.07 | ) | .37 | ||||||||||||||||||||||||||||||||||
| Loans, excluding purchased credit impaired, tax-equivalent basis (3) | 5.85 | 5.77 | 5.73 | 5.47 | 5.11 | .08 | .74 | |||||||||||||||||||||||||||||||||||
| Purchased credit impaired loans | 23.00 | 17.12 | 14.36 | 22.24 | 19.79 | 5.88 | 3.21 | |||||||||||||||||||||||||||||||||||
| Total earning assets | 5.61 | % | 5.47 | % | 5.36 | % | 5.39 | % | 4.85 | % | .14 | % | .76 | % | ||||||||||||||||||||||||||||
| Interest-bearing transaction accounts | .23 | .16 | .14 | .13 | .13 | .07 | .10 | |||||||||||||||||||||||||||||||||||
| Savings & money market deposits | 1.13 | 1.07 | .76 | .80 | .63 | .06 | .50 | |||||||||||||||||||||||||||||||||||
| Time deposits | 1.41 | 1.25 | 1.09 | 1.04 | .72 | .16 | .69 | |||||||||||||||||||||||||||||||||||
| Brokered and wholesale time deposits | 1.93 | 1.87 | 1.91 | 1.15 | 1.05 | .06 | .88 | |||||||||||||||||||||||||||||||||||
| Other borrowings | .12 | 1.59 | 1.31 | .52 | .75 | (1.47 | ) | (.63 | ) | |||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 1.03 | % | .98 | % | .75 | % | .71 | % | .54 | % | .05 | % | .49 | % | ||||||||||||||||||||||||||||
| Net interest spread | 4.58 | % | 4.49 | % | 4.61 | % | 4.68 | % | 4.31 | % | .09 | % | .27 | % | ||||||||||||||||||||||||||||
| Net interest margin | 4.93 | % | 4.82 | % | 4.86 | % | 4.91 | % | 4.51 | % | .11 | % | .42 | % | ||||||||||||||||||||||||||||
| Net interest margin contribution from accretion income on loans | .69 | % | .57 | % | .53 | % | .90 | % | .66 | % | .12 | % | .03 | % | ||||||||||||||||||||||||||||
(1) Includes average nonaccrual loans of $32.0 million for 3Q18, $18.9 million for 2Q18, $12.9 million for 1Q18, $11.4 million for 4Q17, and $8.0 million for 3Q17.
(2) Interest income or expense annualized for the applicable period.
(3) Reflects taxable equivalent adjustments using the federal statutory tax rate of 21% for all periods beginning on or after January 1, 2018 and 35% for all periods prior to January 1, 2018 in adjusting tax-exempt loan interest income to a fully taxable basis. The taxable equivalent adjustments included above amount to $28,000 for 3Q18, $6,000 for 2Q18, $57,000 for 1Q18, $128,000 for 4Q17, and $177,000 for 3Q17.
| State Bank Financial Corporation | ||||||||||||||||||||||||||||||||||||||||||||||||
| 3Q18 Financial Supplement: Table 8 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Reconciliation of Non-GAAP Measures (1) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Quarterly (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands, except per share amounts; taxable equivalent) | 3Q18 | 2Q18 | 1Q18 | 4Q17 | 3Q17 | |||||||||||||||||||||||||||||||||||||||||||
| Book value per common share reconciliation | ||||||||||||||||||||||||||||||||||||||||||||||||
| Book value per common share (GAAP) | $ | 17.12 | $ | 16.79 | $ | 16.58 | $ | 16.45 | $ | 16.48 | ||||||||||||||||||||||||||||||||||||||
| Effect of goodwill and other intangibles | (2.42 | ) | (2.41 | ) | (2.43 | ) | (2.45 | ) | (2.47 | ) | ||||||||||||||||||||||||||||||||||||||
| Tangible book value per common share | $ | 14.70 | $ | 14.38 | $ | 14.15 | $ | 14.00 | $ | 14.01 | ||||||||||||||||||||||||||||||||||||||
| Average tangible equity reconciliation | ||||||||||||||||||||||||||||||||||||||||||||||||
| Average equity (GAAP) | $ | 662,112 | $ | 650,919 | $ | 642,787 | $ | 645,409 | $ | 638,620 | ||||||||||||||||||||||||||||||||||||||
| Effect of average goodwill and other intangibles | (93,870 | ) | (94,516 | ) | (95,167 | ) | (95,845 | ) | (88,618 | ) | ||||||||||||||||||||||||||||||||||||||
| Average tangible equity | $ | 568,242 | $ | 556,403 | $ | 547,620 | $ | 549,564 | $ | 550,002 | ||||||||||||||||||||||||||||||||||||||
(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 financial measures exclude the effect of the period end or average balance of intangible assets. Management believes that these non-GAAP financial 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.