Attached files
| file | filename |
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| 8-K - 8-K - STATE BANK FINANCIAL CORP | a8kcoverpage033113.htm |
| EX-99.2 - EX-99.2 - STATE BANK FINANCIAL CORP | a1q13earningsslidesfinal.htm |
Media Contact: David Rubinger 404.502.1240 / david@rubinger.com
Investor Relations Contact: David Black 404.266.4490 / david.black@statebt.com
State Bank Reports First Quarter Financial Results;
Positive Fundamental Trends Obscured by Timing of Revenue Recognition
ATLANTA, April 25, 2013 - 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
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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.
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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
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.
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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 | 2,190,364 | 2,203,564 | 838 | (88,182 | ) | ||||||||||||||||||||
Liabilities | 2,197,455 | 2,212,053 | 2,274,855 | 2,271,111 | 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 | 427,811 | 422,180 | 411,971 | 398,389 | (3,331 | ) | 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.
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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 | — | 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 | ) | |||||||||||||||||||
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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 on sale of investment securities | 364 | 225 | — | — | 93 | 139 | 271 | |||||||||||||||||||||
Gains on FHLB stock redemptions | — | 680 | 101 | 434 | — | (680 | ) | — | ||||||||||||||||||||
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 | ) | |||||||||||||||||||
6
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 | ) | ||||||||||||
7
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 | 4 | 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.
8
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 | 330,488 | 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 | 2,691,432 | 2,660,418 | (12,447 | ) | (25,178 | ) | |||||||||||||||||||
Interest Margins (2) | ||||||||||||||||||||||||||||
Interest-bearing 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.
9