Attached files
| file | filename |
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| 8-K - 8-K - STATE BANK FINANCIAL CORP | a8kcoverpage063013.htm |
| EX-99.2 - EX-99.2 - STATE BANK FINANCIAL CORP | a2q13earningsslidesfinal.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 Second Quarter Financial Results
▪ | Consistently positive fundamental trends impacted by loss share accounting, resulting in net income slightly above breakeven |
▪ | Noninterest-bearing deposits grew by $20 million and now make up more than 20% of total deposits |
▪ | Organic loans grew a net $72 million and now comprise more than 77% of total gross loans |
▪ | Accretable discount on loans covered by loss share agreements with the FDIC increased by $52 million |
ATLANTA, GA, July 25, 2013 - State Bank Financial Corporation (NASDAQ: STBZ) today announced unaudited financial results for the quarter ended June 30, 2013. Net income for the second quarter was $137 thousand, compared to a net loss of $1.2 million for the first quarter of 2013 and net income of $11.0 million for the second quarter of 2012. Fully diluted earnings per share, while positive, rounded to $.00 for the second quarter compared to a fully diluted loss per share of $.04 in the first quarter of 2013 and fully diluted earnings per share of $.34 in the second quarter of 2012.
Commenting on the results, Joe Evans, Chairman and CEO, said, "I am very pleased with the results of the second quarter. In the core bank, we continued to generate solid loan growth with exceptional credit metrics and strong trends in demand deposits, treasury services and payroll processing. Positive trends continued in the covered loan portfolio resulting in a significant increase in our accretable discount accompanied by a smaller increase in scheduled amortization of our FDIC receivable for loss share agreements. While timing differences between the two obscure earnings in the near-term, we expect our covered loan portfolio performance to continue to meaningfully benefit our longer-term earnings."
Operating Highlights
Net interest income was $41.6 million in the second quarter of 2013, up from $35.5 million in the first quarter of 2013 and down from $46.4 million in the second quarter of 2012. Accretion income on covered loans increased $5.2 million from the first quarter primarily due to improved cash flow re-estimations. Interest income on noncovered loans for the second quarter was $15.1 million, up from $14.4 million in the prior quarter and $13.8 million in the second quarter of 2012. Yield on noncovered loans of 5.60% was down 19 basis points in the second quarter due to the competitive pricing environment. Interest expense of $2.0 million in the second quarter was stable versus the prior quarter and down from $2.6 million in the second quarter of 2012. Cost of funds for the second quarter was 37 basis points, a one basis point improvement from the first quarter of 2013 and a 10 basis point improvement from the year ago period. Cost of funds has now decreased for 12 consecutive quarters.
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The noncovered loan portfolio continued to perform well, as recoveries were greater than charge-offs for the third straight quarter. Provision for loan losses on noncovered loans increased to $665 thousand in the second quarter from $350 thousand in the prior quarter but decreased from $2.1 million in the second quarter of 2012. Provision for loan losses on covered loans was a negative $1.3 million in the second quarter due to a valuation adjustment driven by improved performance of covered assets. This compared to a provision of negative $2.4 million in the first quarter of 2013 and positive $2.9 million in the second quarter of 2012.
Noninterest income excluding amortization of the FDIC receivable for loss share agreements, which we refer to herein as the indemnification asset, was $4.2 million for the second quarter, up slightly from $4.1 million in the first quarter partly driven by higher service charges and an increase in the fair market value of interest rate swaps. Total noninterest income for the second quarter, which includes amortization of the indemnification asset, was negative $16.5 million compared to negative $12.7 million in the first quarter of 2013 and negative $1.8 million in the second quarter of 2012.
Amortization of the indemnification asset negatively impacted noninterest income by $20.8 million in the second quarter compared to $16.8 million in the first quarter of 2013 and $4.0 million in the second quarter of 2012. The increase in amortization expense is due to higher cash flow re-estimations on covered loans, which in turn, reduces our expected payments on the indemnification asset. This change is amplified by having a shorter time period to recognize the amortization, relative to loan accretion, as the indemnification asset must terminate at the end of loss share while loan accretion continues over the estimated life of the loan, which is often much longer than the loss share period. We are currently projecting $73 million of scheduled amortization on the indemnification asset with an estimated weighted average life of four quarters, versus $257 million of scheduled loan accretion income with an estimated weighted average life of 11 quarters. The $257 million of accretable discount remaining at June 30, 2013 is $52 million higher than at the end of the first quarter of 2013.
Total noninterest expense for the second quarter was $25.5 million, down from $26.7 million in the first quarter of 2013 but up from $21.9 million in the second quarter of 2012. The $1.2 million decrease in noninterest expense in the second quarter of 2013 was primarily due to lower salaries and benefits compared to the first quarter of 2013, which included higher severance costs resulting from ongoing efficiency and productivity initiatives. Salaries and benefits declined $1.8 million in the second quarter of 2013 to $15.5 million, of which approximately $800 thousand was attributable to one-time severance costs. Legal and professional fees also declined $321 thousand in the quarter due to lower external consulting fees. Loan collection and OREO costs of $1.9 million negatively impacted noninterest expense in the second quarter of 2013, an increase of $656 thousand compared to the first quarter of 2013 primarily due to expenses incurred on covered loans without principal losses and therefore not eligible for reimbursement from the FDIC.
Financial Condition
Total assets at quarter-end were $2.61 billion, down from $2.64 billion at March 31, 2013 and $2.67 billion at June 30, 2012. Loans not covered by loss share agreements with the FDIC grew a net $71.7 million from the first quarter of 2013 to $1.1 billion and have increased a net $242.0 million year-over-year. Noncovered loans now comprise 77.1% of total gross loans. Total net loans were $1.4 billion, up $18.9 million from the first quarter but down $64.5 million from the second quarter of 2012 as covered loans continue to be resolved.
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Total deposits at quarter-end were $2.13 billion, down from $2.15 billion at the end of the prior quarter and $2.17 billion at the end of the second quarter of 2012. Noninterest-bearing deposits grew by $20.2 million, or 4.9%, from the first quarter of 2013 and by $86.7 million, or 25.3%, since the second quarter of 2012. Noninterest-bearing deposits now make up 20.2% of total deposits.
Tangible book value per share was $12.94 at the end of the second quarter. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 15.57% and a Tier I risk-based capital ratio of 25.86%.
Detailed Results
Supplemental tables displaying financial results for the second quarter of 2013, the previous four quarters and the first half of 2013 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 1.877.243.0931. 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 $2.61 billion in assets as of June 30, 2013. State Bank has locations in Metro Atlanta and Middle 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, including projections of future amortization and accretion, 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 2Q13 Financial Supplement: Table 1 Condensed Consolidated Financial Summary Results Quarterly (Unaudited) | ||||||||||||||||||||||||||||
2Q13 Change vs. | ||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | 2Q13 | 1Q13 | 4Q12 | 3Q12 | 2Q12 | 1Q13 | 2Q12 | |||||||||||||||||||||
Income Statement Highlights | ||||||||||||||||||||||||||||
Total interest income on invested funds | $ | 2,693 | $ | 2,502 | $ | 2,585 | $ | 2,847 | $ | 2,992 | $ | 191 | $ | (299 | ) | |||||||||||||
Interest income on noncovered loans, including fees | 15,141 | 14,374 | 15,053 | 14,729 | 13,773 | 767 | 1,368 | |||||||||||||||||||||
Accretion income on covered loans | 25,787 | 20,636 | 27,839 | 18,893 | 32,191 | 5,151 | (6,404 | ) | ||||||||||||||||||||
Total interest expense | 1,995 | 1,996 | 2,096 | 2,235 | 2,566 | (1 | ) | (571 | ) | |||||||||||||||||||
Net interest income | 41,626 | 35,516 | 43,381 | 34,234 | 46,390 | 6,110 | (4,764 | ) | ||||||||||||||||||||
Provision for loan losses (noncovered loans) | 665 | 350 | 325 | 1,050 | 2,125 | 315 | (1,460 | ) | ||||||||||||||||||||
Provision for loan losses (covered loans) | (1,288 | ) | (2,385 | ) | 3,021 | 5,441 | 2,902 | 1,097 | (4,190 | ) | ||||||||||||||||||
Amortization of FDIC receivable for loss share agreements | (20,762 | ) | (16,779 | ) | (15,260 | ) | (6,291 | ) | (4,007 | ) | (3,983 | ) | (16,755 | ) | ||||||||||||||
Noninterest income | 4,224 | 4,121 | 4,641 | 3,002 | 2,248 | 103 | 1,976 | |||||||||||||||||||||
Noninterest expense | 25,461 | 26,664 | 24,783 | 19,835 | 21,926 | (1,203 | ) | 3,535 | ||||||||||||||||||||
Income (loss) before income taxes | 250 | (1,771 | ) | 4,633 | 4,619 | 17,678 | 2,021 | (17,428 | ) | |||||||||||||||||||
Income tax expense (benefit) | 113 | (615 | ) | 1,418 | 1,261 | 6,647 | 728 | (6,534 | ) | |||||||||||||||||||
Net income (loss) | $ | 137 | $ | (1,156 | ) | $ | 3,215 | $ | 3,358 | $ | 11,031 | $ | 1,293 | $ | (10,894 | ) | ||||||||||||
Per Common Share Data | ||||||||||||||||||||||||||||
Basic net income (loss) per share | $ | — | $ | (.04 | ) | $ | .10 | $ | .11 | $ | .35 | $ | .04 | $ | (.35 | ) | ||||||||||||
Diluted net income (loss) per share | — | (.04 | ) | .10 | .10 | .34 | .04 | (.34 | ) | |||||||||||||||||||
Book value per share at period end | 13.34 | 13.38 | 13.48 | 13.42 | 13.24 | (.04 | ) | .10 | ||||||||||||||||||||
Tangible book value per share at period end | 12.94 | 12.96 | 13.06 | 13.18 | 12.99 | (.02 | ) | (.05 | ) | |||||||||||||||||||
Market price at period end | 15.03 | 16.37 | 15.88 | 16.49 | 15.16 | (1.34 | ) | (.13 | ) | |||||||||||||||||||
Period end shares outstanding | 31,920,331 | 31,918,665 | 31,908,665 | 31,896,738 | 31,721,236 | 1,666 | 199,095 | |||||||||||||||||||||
Weighted Average Shares Outstanding: | ||||||||||||||||||||||||||||
Basic | 31,918,677 | 31,908,776 | 31,904,381 | 31,654,046 | 31,613,581 | 9,901 | 305,096 | |||||||||||||||||||||
Diluted | 33,124,681 | 31,908,776 | 33,179,198 | 32,808,726 | 32,776,553 | 1,215,905 | 348,128 | |||||||||||||||||||||
Average Balance Sheet Highlights | ||||||||||||||||||||||||||||
Noncovered loans, net of unearned income | $ | 1,083,549 | $ | 1,007,094 | $ | 955,153 | $ | 901,168 | $ | 840,428 | $ | 76,455 | $ | 243,121 | ||||||||||||||
Covered loans | 351,955 | 419,204 | 499,828 | 622,841 | 702,145 | (67,249 | ) | (350,190 | ) | |||||||||||||||||||
Loans, net of unearned income | 1,435,504 | 1,426,298 | 1,454,981 | 1,524,009 | 1,542,573 | 9,206 | (107,069 | ) | ||||||||||||||||||||
Assets | 2,644,241 | 2,627,041 | 2,642,384 | 2,673,526 | 2,687,135 | 17,200 | (42,894 | ) | ||||||||||||||||||||
Deposits | 2,147,653 | 2,115,382 | 2,114,544 | 2,155,047 | 2,190,365 | 32,271 | (42,712 | ) | ||||||||||||||||||||
Liabilities | 2,217,002 | 2,197,455 | 2,211,127 | 2,246,107 | 2,271,942 | 19,547 | (54,940 | ) | ||||||||||||||||||||
Equity | 427,239 | 429,586 | 431,257 | 427,419 | 415,193 | (2,347 | ) | 12,046 | ||||||||||||||||||||
Tangible common equity | 414,181 | 416,155 | 421,617 | 419,596 | 407,094 | (1,974 | ) | 7,087 | ||||||||||||||||||||
Key Metrics | ||||||||||||||||||||||||||||
Return on average assets | .02 | % | (.18 | )% | .48 | % | .50 | % | 1.65 | % | .20 | % | (1.63 | )% | ||||||||||||||
Return on average equity | .13 | (1.09 | ) | 2.97 | 3.13 | 10.69 | 1.22 | (10.56 | ) | |||||||||||||||||||
Yield on earning assets | 7.75 | 6.94 | 8.47 | 6.77 | 9.39 | .81 | (1.64 | ) | ||||||||||||||||||||
Cost of funds | .37 | .38 | .39 | .41 | .47 | (.01 | ) | (.10 | ) | |||||||||||||||||||
Rate on interest-bearing liabilities | .46 | .47 | .48 | .49 | .55 | (.01 | ) | (.09 | ) | |||||||||||||||||||
Net interest margin | 7.39 | 6.57 | 8.08 | 6.36 | 8.90 | .82 | (1.51 | ) | ||||||||||||||||||||
Average equity to average assets | 16.16 | 16.35 | 16.32 | 15.99 | 15.45 | (.19 | ) | .71 | ||||||||||||||||||||
Leverage ratio | 15.57 | 15.51 | 15.49 | 15.44 | 15.24 | .06 | .33 | |||||||||||||||||||||
Tier I risk-based capital ratio | 25.86 | 28.17 | 29.25 | 29.95 | 31.45 | (2.31 | ) | (5.59 | ) | |||||||||||||||||||
Total risk-based capital ratio | 27.12 | 29.45 | 30.54 | 31.23 | 32.77 | (2.33 | ) | (5.65 | ) | |||||||||||||||||||
Efficiency ratio (1) | 101.33 | 116.42 | 75.52 | 63.98 | 49.06 | (15.09 | ) | 52.27 | ||||||||||||||||||||
Average loans to average deposits | 66.84 | 67.43 | 68.81 | 70.72 | 70.43 | (.59 | ) | (3.59 | ) | |||||||||||||||||||
Noninterest-bearing deposits to total deposits | 20.22 | 19.07 | 18.03 | 17.31 | 15.85 | 1.15 | 4.37 | |||||||||||||||||||||
Nonperforming loans to total noncovered loans (2) | .33 | .42 | .49 | .58 | .49 | (.09 | ) | (.16 | ) | |||||||||||||||||||
Nonperforming assets to loans + ORE: | ||||||||||||||||||||||||||||
Noncovered | .42 | .44 | .60 | .67 | .60 | (.02 | ) | (.18 | ) | |||||||||||||||||||
Covered | 13.56 | 10.67 | 8.67 | 9.43 | 8.07 | 2.89 | 5.49 | |||||||||||||||||||||
(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 2Q13 Financial Supplement: Table 2 Condensed Consolidated Balance Sheets Quarterly (Unaudited) | ||||||||||||||||||||||||||||
2Q13 Change vs. | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2Q13 | 1Q13 | 4Q12 | 3Q12 | 2Q12 | 1Q13 | 2Q12 | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Cash and amounts due from depository institutions | $ | 6,783 | $ | 7,680 | $ | 9,974 | $ | 6,784 | $ | 6,156 | $ | (897 | ) | $ | 627 | |||||||||||||
Interest-bearing deposits in other financial institutions | 430,937 | 459,494 | 433,483 | 345,399 | 279,060 | (28,557 | ) | 151,877 | ||||||||||||||||||||
Cash and cash equivalents | 437,720 | 467,174 | 443,457 | 352,183 | 285,216 | (29,454 | ) | 152,504 | ||||||||||||||||||||
Investment securities available-for-sale | 370,146 | 351,565 | 303,901 | 311,323 | 280,662 | 18,581 | 89,484 | |||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||||||||||
Noncovered under FDIC loss share agreements | 1,123,122 | 1,051,455 | 985,502 | 937,331 | 881,120 | 71,667 | 242,002 | |||||||||||||||||||||
Covered under FDIC loss share agreements | 333,683 | 396,831 | 474,713 | 553,006 | 687,451 | (63,148 | ) | (353,768 | ) | |||||||||||||||||||
Allowance for loan losses (noncovered loans) | (15,805 | ) | (15,122 | ) | (14,660 | ) | (14,330 | ) | (13,317 | ) | (683 | ) | (2,488 | ) | ||||||||||||||
Allowance for loan losses (covered loans) | (17,630 | ) | (28,706 | ) | (55,478 | ) | (46,411 | ) | (67,346 | ) | 11,076 | 49,716 | ||||||||||||||||
Net loans | 1,423,370 | 1,404,458 | 1,390,077 | 1,429,596 | 1,487,908 | 18,912 | (64,538 | ) | ||||||||||||||||||||
Mortgage loans held for sale | 753 | 2,386 | 4,853 | 2,130 | 1,907 | (1,633 | ) | (1,154 | ) | |||||||||||||||||||
Other real estate owned: | ||||||||||||||||||||||||||||
Noncovered under FDIC loss share agreements | 1,097 | 276 | 1,115 | 892 | 976 | 821 | 121 | |||||||||||||||||||||
Covered under FDIC loss share agreements | 52,345 | 47,401 | 45,062 | 57,595 | 60,334 | 4,944 | (7,989 | ) | ||||||||||||||||||||
Premises and equipment, net | 34,856 | 35,379 | 35,364 | 38,282 | 38,298 | (523 | ) | (3,442 | ) | |||||||||||||||||||
Goodwill | 10,381 | 10,381 | 10,381 | 6,562 | 6,562 | — | 3,819 | |||||||||||||||||||||
Other intangibles, net | 2,449 | 2,819 | 3,188 | 1,103 | 1,360 | (370 | ) | 1,089 | ||||||||||||||||||||
FDIC receivable for loss share agreements | 210,557 | 258,848 | 355,325 | 354,978 | 418,826 | (48,291 | ) | (208,269 | ) | |||||||||||||||||||
Other assets | 64,023 | 60,619 | 68,311 | 87,603 | 89,176 | 3,404 | (25,153 | ) | ||||||||||||||||||||
Total assets | $ | 2,607,697 | $ | 2,641,306 | $ | 2,661,034 | $ | 2,642,247 | $ | 2,671,225 | $ | (33,609 | ) | $ | (63,528 | ) | ||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 429,960 | $ | 409,717 | $ | 387,450 | $ | 367,762 | $ | 343,214 | $ | 20,243 | $ | 86,746 | ||||||||||||||
Interest-bearing deposits | 1,696,124 | 1,738,473 | 1,760,986 | 1,756,536 | 1,821,922 | (42,349 | ) | (125,798 | ) | |||||||||||||||||||
Total deposits | 2,126,084 | 2,148,190 | 2,148,436 | 2,124,298 | 2,165,136 | (22,106 | ) | (39,052 | ) | |||||||||||||||||||
Securities sold under agreements to repurchase | 3,576 | 3,959 | 4,755 | 607 | 2,845 | (383 | ) | 731 | ||||||||||||||||||||
Notes payable | 5,698 | 3,861 | 2,523 | 2,527 | 2,531 | 1,837 | 3,167 | |||||||||||||||||||||
Other liabilities | 46,413 | 58,360 | 75,104 | 86,617 | 80,659 | (11,947 | ) | (34,246 | ) | |||||||||||||||||||
Total liabilities | 2,181,771 | 2,214,370 | 2,230,818 | 2,214,049 | 2,251,171 | (32,599 | ) | (69,400 | ) | |||||||||||||||||||
Total shareholders’ equity | 425,926 | 426,936 | 430,216 | 428,198 | 420,054 | (1,010 | ) | 5,872 | ||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,607,697 | $ | 2,641,306 | $ | 2,661,034 | $ | 2,642,247 | $ | 2,671,225 | $ | (33,609 | ) | $ | (63,528 | ) | ||||||||||||
Capital Ratios | ||||||||||||||||||||||||||||
Average equity to average assets | 16.16 | % | 16.35 | % | 16.32 | % | 15.99 | % | 15.45 | % | (.19 | )% | .71 | % | ||||||||||||||
Leverage ratio | 15.57 | 15.51 | 15.49 | 15.44 | 15.24 | .06 | .33 | |||||||||||||||||||||
Tier I risk-based capital ratio | 25.86 | 28.17 | 29.25 | 29.95 | 31.45 | (2.31 | ) | (5.59 | ) | |||||||||||||||||||
Total risk-based capital ratio | 27.12 | 29.45 | 30.54 | 31.23 | 32.77 | (2.33 | ) | (5.65 | ) | |||||||||||||||||||
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State Bank Financial Corporation 2Q13 Financial Supplement: Table 3 Condensed Consolidated Income Statements Quarterly (Unaudited) | ||||||||||||||||||||||||||||
2Q13 Change vs. | ||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | 2Q13 | 1Q13 | 4Q12 | 3Q12 | 2Q12 | 1Q13 | 2Q12 | |||||||||||||||||||||
Total interest income on invested funds | $ | 2,693 | $ | 2,502 | $ | 2,585 | $ | 2,847 | $ | 2,992 | $ | 191 | $ | (299 | ) | |||||||||||||
Interest income on noncovered loans, including fees | 15,141 | 14,374 | 15,053 | 14,729 | 13,773 | 767 | 1,368 | |||||||||||||||||||||
Accretion income on covered loans | 25,787 | 20,636 | 27,839 | 18,893 | 32,191 | 5,151 | (6,404 | ) | ||||||||||||||||||||
Total interest expense | 1,995 | 1,996 | 2,096 | 2,235 | 2,566 | (1 | ) | (571 | ) | |||||||||||||||||||
Net interest income | 41,626 | 35,516 | 43,381 | 34,234 | 46,390 | 6,110 | (4,764 | ) | ||||||||||||||||||||
Provision for loan losses (noncovered loans) | 665 | 350 | 325 | 1,050 | 2,125 | 315 | (1,460 | ) | ||||||||||||||||||||
Provision for loan losses (covered loans) | (1,288 | ) | (2,385 | ) | 3,021 | 5,441 | 2,902 | 1,097 | (4,190 | ) | ||||||||||||||||||
Net interest income after provision for loan losses | 42,249 | 37,551 | 40,035 | 27,743 | 41,363 | 4,698 | 886 | |||||||||||||||||||||
Noninterest Income: | ||||||||||||||||||||||||||||
Amortization of FDIC receivable for loss share agreements | (20,762 | ) | (16,779 | ) | (15,260 | ) | (6,291 | ) | (4,007 | ) | (3,983 | ) | (16,755 | ) | ||||||||||||||
Service charges on deposits | 1,284 | 1,215 | 1,408 | 1,298 | 1,199 | 69 | 85 | |||||||||||||||||||||
Mortgage banking income | 289 | 306 | 363 | 255 | 311 | (17 | ) | (22 | ) | |||||||||||||||||||
Gain on sale of investment securities | — | 364 | 225 | — | — | (364 | ) | — | ||||||||||||||||||||
Gain on FHLB stock redemptions | — | — | 680 | 101 | 434 | — | (434 | ) | ||||||||||||||||||||
Payroll fee income | 705 | 832 | 622 | — | — | (127 | ) | 705 | ||||||||||||||||||||
ATM income | 635 | 605 | 619 | 611 | 610 | 30 | 25 | |||||||||||||||||||||
Other | 1,311 | 799 | 724 | 737 | (306 | ) | 512 | 1,617 | ||||||||||||||||||||
Total noninterest income | (16,538 | ) | (12,658 | ) | (10,619 | ) | (3,289 | ) | (1,759 | ) | (3,880 | ) | (14,779 | ) | ||||||||||||||
Noninterest Expense: | ||||||||||||||||||||||||||||
Salaries and employee benefits | 15,547 | 17,395 | 15,134 | 12,811 | 13,628 | (1,848 | ) | 1,919 | ||||||||||||||||||||
Occupancy and equipment | 2,550 | 2,456 | 2,500 | 2,469 | 2,419 | 94 | 131 | |||||||||||||||||||||
Legal and professional fees | 1,280 | 1,601 | 1,669 | 1,265 | 2,173 | (321 | ) | (893 | ) | |||||||||||||||||||
Marketing | 350 | 328 | 968 | 573 | 366 | 22 | (16 | ) | ||||||||||||||||||||
Federal insurance premiums and other regulatory fees | 604 | 469 | 673 | 378 | 355 | 135 | 249 | |||||||||||||||||||||
Loan collection and OREO costs | 1,944 | 1,288 | 929 | (484 | ) | (42 | ) | 656 | 1,986 | |||||||||||||||||||
Data processing | 1,504 | 1,437 | 1,272 | 1,196 | 1,336 | 67 | 168 | |||||||||||||||||||||
Amortization of intangibles | 369 | 370 | 251 | 256 | 276 | (1 | ) | 93 | ||||||||||||||||||||
Other | 1,313 | 1,320 | 1,387 | 1,371 | 1,415 | (7 | ) | (102 | ) | |||||||||||||||||||
Total noninterest expense | 25,461 | 26,664 | 24,783 | 19,835 | 21,926 | (1,203 | ) | 3,535 | ||||||||||||||||||||
Income (Loss) Before Income Taxes | 250 | (1,771 | ) | 4,633 | 4,619 | 17,678 | 2,021 | (17,428 | ) | |||||||||||||||||||
Income tax expense (benefit) | 113 | (615 | ) | 1,418 | 1,261 | 6,647 | 728 | (6,534 | ) | |||||||||||||||||||
Net Income (Loss) | $ | 137 | $ | (1,156 | ) | $ | 3,215 | $ | 3,358 | $ | 11,031 | $ | 1,293 | $ | (10,894 | ) | ||||||||||||
Basic Net Income (Loss) Per Share | $ | — | $ | (.04 | ) | $ | .10 | $ | .11 | $ | .35 | $ | .04 | $ | (.35 | ) | ||||||||||||
Diluted Net Income (Loss) Per Share | — | (.04 | ) | .10 | .10 | .34 | .04 | (.34 | ) | |||||||||||||||||||
Weighted Average Shares Outstanding: | ||||||||||||||||||||||||||||
Basic | 31,918,677 | 31,908,776 | 31,904,381 | 31,654,046 | 31,613,581 | 9,901 | 305,096 | |||||||||||||||||||||
Diluted | 33,124,681 | 31,908,776 | 33,179,198 | 32,808,726 | 32,776,553 | 1,215,905 | 348,128 | |||||||||||||||||||||
6
State Bank Financial Corporation 2Q13 Financial Supplement: Table 4 Condensed Consolidated Income Statements Year to Date (Unaudited) | ||||||||||||
Six Months Ended June 30 | YTD Change | |||||||||||
(Dollars in thousands, except per share amounts) | 2013 | 2012 | ||||||||||
Total interest income on invested funds | $ | 5,195 | $ | 5,958 | $ | (763 | ) | |||||
Interest income on noncovered loans, including fees | 29,515 | 25,678 | 3,837 | |||||||||
Accretion income on covered loans | 46,423 | 55,681 | (9,258 | ) | ||||||||
Total interest expense | 3,991 | 5,418 | (1,427 | ) | ||||||||
Net interest income | 77,142 | 81,899 | (4,757 | ) | ||||||||
Provision for loan losses (noncovered loans) | 1,015 | 3,660 | (2,645 | ) | ||||||||
Provision for loan losses (covered loans) | (3,673 | ) | 1,619 | (5,292 | ) | |||||||
Net interest income after provision for loan losses | 79,800 | 76,620 | 3,180 | |||||||||
Noninterest Income: | ||||||||||||
Amortization of FDIC receivable for loss share agreements | (37,541 | ) | (11,018 | ) | (26,523 | ) | ||||||
Service charges on deposits | 2,499 | 2,411 | 88 | |||||||||
Mortgage banking income | 595 | 613 | (18 | ) | ||||||||
Gain on sale of investment securities | 364 | 93 | 271 | |||||||||
Gains on FHLB stock redemptions | — | 434 | (434 | ) | ||||||||
Payroll fee income | 1,537 | — | 1,537 | |||||||||
ATM income | 1,240 | 1,195 | 45 | |||||||||
Other | 2,110 | 182 | 1,928 | |||||||||
Total noninterest income | (29,196 | ) | (6,090 | ) | (23,106 | ) | ||||||
Noninterest Expense: | ||||||||||||
Salaries and employee benefits | 32,942 | 26,591 | 6,351 | |||||||||
Occupancy and equipment | 5,006 | 4,876 | 130 | |||||||||
Legal and professional fees | 2,881 | 3,690 | (809 | ) | ||||||||
Marketing | 678 | 630 | 48 | |||||||||
Federal insurance premiums and other regulatory fees | 1,073 | 773 | 300 | |||||||||
Loan collection and OREO costs | 3,232 | 1,515 | 1,717 | |||||||||
Data processing | 2,941 | 3,200 | (259 | ) | ||||||||
Amortization of intangibles | 739 | 522 | 217 | |||||||||
Other | 2,633 | 2,821 | (188 | ) | ||||||||
Total noninterest expense | 52,125 | 44,618 | 7,507 | |||||||||
Income (Loss) Before Income Taxes | (1,521 | ) | 25,912 | (27,433 | ) | |||||||
Income tax expense (benefit) | (502 | ) | 9,743 | (10,245 | ) | |||||||
Net Income (Loss) | $ | (1,019 | ) | $ | 16,169 | $ | (17,188 | ) | ||||
Basic Net Income (Loss) Per Share | $ | (.03 | ) | $ | .51 | $ | (.54 | ) | ||||
Diluted Net Income (Loss) Per Share | (.03 | ) | .49 | (.52 | ) | |||||||
Weighted Average Shares Outstanding: | ||||||||||||
Basic | 31,913,754 | 31,612,587 | 301,167 | |||||||||
Diluted | 31,913,754 | 32,785,670 | (871,916 | ) | ||||||||
7
State Bank Financial Corporation 2Q13 Financial Supplement: Table 5 Condensed Consolidated Composition of Loans and Deposits at Period Ends Quarterly (Unaudited) | ||||||||||||||||||||||||||||
2Q13 Change vs. | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2Q13 | 1Q13 | 4Q12 | 3Q12 | 2Q12 | 1Q13 | 2Q12 | |||||||||||||||||||||
Composition of Loans | ||||||||||||||||||||||||||||
Noncovered loans: | ||||||||||||||||||||||||||||
Construction, land & land development | $ | 295,756 | $ | 265,055 | $ | 230,448 | $ | 249,739 | $ | 253,980 | $ | 30,701 | $ | 41,776 | ||||||||||||||
Other commercial real estate | 508,620 | 486,287 | 457,729 | 411,574 | 356,476 | 22,333 | 152,144 | |||||||||||||||||||||
Total commercial real estate | 804,376 | 751,342 | 688,177 | 661,313 | 610,456 | 53,034 | 193,920 | |||||||||||||||||||||
Commercial & industrial | 33,908 | 35,944 | 35,390 | 33,817 | 35,186 | (2,036 | ) | (1,278 | ) | |||||||||||||||||||
Owner-occupied real estate | 186,652 | 176,426 | 172,445 | 163,327 | 154,533 | 10,226 | 32,119 | |||||||||||||||||||||
Total commercial & industrial | 220,560 | 212,370 | 207,835 | 197,144 | 189,719 | 8,190 | 30,841 | |||||||||||||||||||||
Residential real estate | 53,962 | 45,433 | 43,179 | 41,514 | 41,449 | 8,529 | 12,513 | |||||||||||||||||||||
Consumer & other | 44,224 | 42,310 | 46,311 | 37,360 | 39,496 | 1,914 | 4,728 | |||||||||||||||||||||
Total noncovered loans | 1,123,122 | 1,051,455 | 985,502 | 937,331 | 881,120 | 71,667 | 242,002 | |||||||||||||||||||||
Covered loans: | ||||||||||||||||||||||||||||
Construction, land & land development | 51,660 | 58,802 | 81,288 | 98,546 | 136,200 | (7,142 | ) | (84,540 | ) | |||||||||||||||||||
Other commercial real estate | 91,246 | 115,194 | 139,010 | 165,148 | 208,975 | (23,948 | ) | (117,729 | ) | |||||||||||||||||||
Total commercial real estate | 142,906 | 173,996 | 220,298 | 263,694 | 345,175 | (31,090 | ) | (202,269 | ) | |||||||||||||||||||
Commercial & industrial | 8,059 | 10,811 | 14,859 | 21,281 | 29,298 | (2,752 | ) | (21,239 | ) | |||||||||||||||||||
Owner-occupied real estate | 67,568 | 80,239 | 86,612 | 100,151 | 118,848 | (12,671 | ) | (51,280 | ) | |||||||||||||||||||
Total commercial & industrial | 75,627 | 91,050 | 101,471 | 121,432 | 148,146 | (15,423 | ) | (72,519 | ) | |||||||||||||||||||
Residential real estate | 114,036 | 131,254 | 142,032 | 156,368 | 180,167 | (17,218 | ) | (66,131 | ) | |||||||||||||||||||
Consumer & other | 1,114 | 531 | 10,912 | 11,512 | 13,963 | 583 | (12,849 | ) | ||||||||||||||||||||
Total covered loans | 333,683 | 396,831 | 474,713 | 553,006 | 687,451 | (63,148 | ) | (353,768 | ) | |||||||||||||||||||
Total loans | $ | 1,456,805 | $ | 1,448,286 | $ | 1,460,215 | $ | 1,490,337 | $ | 1,568,571 | $ | 8,519 | $ | (111,766 | ) | |||||||||||||
Composition of Deposits | ||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 429,960 | $ | 409,717 | $ | 387,450 | $ | 367,762 | $ | 343,214 | $ | 20,243 | $ | 86,746 | ||||||||||||||
Interest-bearing transaction accounts | 351,288 | 333,336 | 355,651 | 324,305 | 331,550 | 17,952 | 19,738 | |||||||||||||||||||||
Savings and money market deposits | 911,415 | 959,912 | 949,631 | 960,714 | 1,016,619 | (48,497 | ) | (105,204 | ) | |||||||||||||||||||
Time deposits less than $100,000 | 186,874 | 194,098 | 201,658 | 208,769 | 222,402 | (7,224 | ) | (35,528 | ) | |||||||||||||||||||
Time deposits $100,000 or greater | 139,672 | 144,501 | 147,363 | 157,414 | 170,844 | (4,829 | ) | (31,172 | ) | |||||||||||||||||||
Brokered and wholesale time deposits | 106,875 | 106,626 | 106,683 | 105,334 | 80,507 | 249 | 26,368 | |||||||||||||||||||||
Total deposits | $ | 2,126,084 | $ | 2,148,190 | $ | 2,148,436 | $ | 2,124,298 | $ | 2,165,136 | $ | (22,106 | ) | $ | (39,052 | ) | ||||||||||||
8
State Bank Financial Corporation 2Q13 Financial Supplement: Table 6 Condensed Consolidated Asset Quality Data Quarterly (Unaudited) | ||||||||||||||||||||||||||||
2Q13 Change vs. | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2Q13 | 1Q13 | 4Q12 | 3Q12 | 2Q12 | 1Q13 | 2Q12 | |||||||||||||||||||||
Nonperforming noncovered assets: | ||||||||||||||||||||||||||||
Nonaccrual loans | $ | 2,695 | $ | 3,413 | $ | 2,621 | $ | 4,117 | $ | 3,929 | $ | (718 | ) | $ | (1,234 | ) | ||||||||||||
Troubled debt restructurings | 973 | 970 | 2,171 | 1,297 | 346 | 3 | 627 | |||||||||||||||||||||
Total nonperforming noncovered loans | 3,668 | 4,383 | 4,792 | 5,414 | 4,275 | (715 | ) | (607 | ) | |||||||||||||||||||
Other real estate owned | 1,097 | 276 | 1,115 | 892 | 976 | 821 | 121 | |||||||||||||||||||||
Total nonperforming noncovered assets | 4,765 | 4,659 | 5,907 | 6,306 | 5,251 | 106 | (486 | ) | ||||||||||||||||||||
Nonperforming covered assets: | ||||||||||||||||||||||||||||
Other real estate owned (1) | $ | 52,345 | $ | 47,401 | $ | 45,062 | $ | 57,595 | $ | 60,334 | $ | 4,944 | $ | (7,989 | ) | |||||||||||||
Noncovered assets: | ||||||||||||||||||||||||||||
Charge-offs | $ | 8 | $ | 12 | $ | 2 | $ | 112 | $ | 490 | $ | (4 | ) | $ | (482 | ) | ||||||||||||
Recoveries | 26 | 124 | 7 | 75 | 1 | (98 | ) | 25 | ||||||||||||||||||||
Net charge-offs (recoveries) | $ | (18 | ) | $ | (112 | ) | $ | (5 | ) | $ | 37 | $ | 489 | $ | 94 | $ | (507 | ) | ||||||||||
Ratios: | ||||||||||||||||||||||||||||
Annualized QTD net charge-offs (recoveries) to total average noncovered loans | (.01 | )% | (.05 | )% | — | % | .02 | % | .23 | % | .04 | % | (.24 | )% | ||||||||||||||
Nonperforming loans to total noncovered loans (2) | .33 | .42 | .49 | .58 | .49 | (.09 | ) | (.16 | ) | |||||||||||||||||||
Nonperforming assets to loans + ORE: | ||||||||||||||||||||||||||||
Noncovered | .42 | .44 | .60 | .67 | .60 | (.02 | ) | (.18 | ) | |||||||||||||||||||
Covered | 13.56 | 10.67 | 8.67 | 9.43 | 8.07 | 2.89 | 5.49 | |||||||||||||||||||||
Allowance for loan losses to loans: | ||||||||||||||||||||||||||||
Noncovered | 1.41 | 1.44 | 1.49 | 1.53 | 1.51 | (.03 | ) | (.10 | ) | |||||||||||||||||||
Covered | 5.28 | 7.23 | 11.69 | 8.39 | 9.80 | (1.95 | ) | (4.52 | ) | |||||||||||||||||||
(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.
9
State Bank Financial Corporation 2Q13 Financial Supplement: Table 7 Condensed Consolidated Average Balances and Yield Analysis Quarterly (Unaudited) | ||||||||||||||||||||||||||||
2Q13 Change vs. | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2Q13 | 1Q13 | 4Q12 | 3Q12 | 2Q12 | 1Q13 | 2Q12 | |||||||||||||||||||||
Selected Average Balances | ||||||||||||||||||||||||||||
Interest-bearing deposits in other financial institutions | $ | 465,823 | $ | 447,929 | $ | 371,873 | $ | 333,882 | $ | 258,178 | $ | 17,894 | $ | 207,645 | ||||||||||||||
Taxable investment securities | 349,789 | 311,363 | 298,957 | 276,399 | 286,346 | 38,426 | 63,443 | |||||||||||||||||||||
Nontaxable investment securities, tax equivalent basis | 9,602 | 10,236 | 12,173 | 12,263 | 12,469 | (634 | ) | (2,867 | ) | |||||||||||||||||||
Noncovered loans receivable (1) | 1,083,549 | 1,007,094 | 955,153 | 901,168 | 840,428 | 76,455 | 243,121 | |||||||||||||||||||||
Covered loans receivable | 351,955 | 419,204 | 499,828 | 622,841 | 702,145 | (67,249 | ) | (350,190 | ) | |||||||||||||||||||
Total earning assets | 2,260,718 | 2,195,826 | 2,137,984 | 2,146,553 | 2,099,566 | 64,892 | 161,152 | |||||||||||||||||||||
Total nonearning assets | 383,523 | 431,215 | 504,400 | 526,973 | 587,569 | (47,692 | ) | (204,046 | ) | |||||||||||||||||||
Total assets | 2,644,241 | 2,627,041 | 2,642,384 | 2,673,526 | 2,687,135 | 17,200 | (42,894 | ) | ||||||||||||||||||||
Interest-bearing transaction accounts | 360,221 | 324,342 | 315,541 | 321,328 | 323,126 | 35,879 | 37,095 | |||||||||||||||||||||
Savings & money market deposits | 936,819 | 956,517 | 954,260 | 997,939 | 1,052,130 | (19,698 | ) | (115,311 | ) | |||||||||||||||||||
Time deposits less than $100,000 | 190,795 | 197,893 | 204,821 | 214,488 | 235,757 | (7,098 | ) | (44,962 | ) | |||||||||||||||||||
Time deposits $100,000 or greater | 142,364 | 145,329 | 152,534 | 162,314 | 182,850 | (2,965 | ) | (40,486 | ) | |||||||||||||||||||
Brokered and wholesale time deposits | 106,818 | 106,641 | 106,712 | 102,468 | 66,013 | 177 | 40,805 | |||||||||||||||||||||
Notes payable | 5,026 | 2,536 | 2,525 | 2,529 | 2,533 | 2,490 | 2,493 | |||||||||||||||||||||
Securities sold under agreements to repurchase | 5,083 | 3,388 | 5,352 | 2,448 | 2,776 | 1,695 | 2,307 | |||||||||||||||||||||
Total interest-bearing liabilities | 1,747,126 | 1,736,646 | 1,741,745 | 1,803,514 | 1,865,185 | 10,480 | (118,059 | ) | ||||||||||||||||||||
Noninterest-bearing demand deposits | 410,636 | 384,660 | 380,676 | 356,510 | 330,489 | 25,976 | 80,147 | |||||||||||||||||||||
Other liabilities | 59,240 | 76,149 | 88,706 | 86,083 | 76,268 | (16,909 | ) | (17,028 | ) | |||||||||||||||||||
Shareholders’ equity | 427,239 | 429,586 | 431,257 | 427,419 | 415,193 | (2,347 | ) | 12,046 | ||||||||||||||||||||
Total liabilities and shareholders' equity | 2,644,241 | 2,627,041 | 2,642,384 | 2,673,526 | 2,687,135 | 17,200 | (42,894 | ) | ||||||||||||||||||||
Interest Margins (2) | ||||||||||||||||||||||||||||
Interest-bearing deposits in other financial institutions | .27 | % | .23 | % | .27 | % | .22 | % | .24 | % | .04 | % | .03 | % | ||||||||||||||
Taxable investment securities | 2.64 | 2.82 | 2.96 | 3.68 | 3.83 | (.18 | ) | (1.19 | ) | |||||||||||||||||||
Nontaxable investment securities, tax equivalent basis (3) | 4.93 | 5.11 | 5.26 | 5.29 | 5.42 | (.18 | ) | (.49 | ) | |||||||||||||||||||
Noncovered loans receivable | 5.60 | 5.79 | 6.27 | 6.50 | 6.59 | (.19 | ) | (.99 | ) | |||||||||||||||||||
Covered loans receivable | 29.39 | 19.96 | 22.16 | 12.07 | 18.44 | 9.43 | 10.95 | |||||||||||||||||||||
Total earning assets | 7.75 | % | 6.94 | % | 8.47 | % | 6.77 | % | 9.39 | % | .81 | % | (1.64 | )% | ||||||||||||||
Interest-bearing transaction accounts | .10 | .12 | .11 | .12 | .12 | (.02 | ) | (.02 | ) | |||||||||||||||||||
Savings & money market deposits | .42 | .43 | .45 | .46 | .51 | (.01 | ) | (.09 | ) | |||||||||||||||||||
Time deposits less than $100,000 | .59 | .59 | .62 | .68 | .87 | — | (.28 | ) | ||||||||||||||||||||
Time deposits $100,000 or greater | .72 | .74 | .75 | .80 | .97 | (.02 | ) | (.25 | ) | |||||||||||||||||||
Brokered and wholesale time deposits | .93 | .93 | .94 | .92 | .85 | — | .08 | |||||||||||||||||||||
Notes payable | 10.77 | 12.63 | 8.67 | 8.49 | 8.26 | (1.86 | ) | 2.51 | ||||||||||||||||||||
Securities sold under agreements to repurchase | .08 | .12 | .07 | .16 | .14 | (.04 | ) | (.06 | ) | |||||||||||||||||||
Total interest-bearing liabilities | .46 | .47 | .48 | .49 | .55 | (.01 | ) | (.09 | ) | |||||||||||||||||||
Net interest spread | 7.29 | 6.47 | 7.99 | 6.28 | 8.84 | .82 | (1.55 | ) | ||||||||||||||||||||
Net interest margin | 7.39 | % | 6.57 | % | 8.08 | % | 6.36 | % | 8.90 | % | .82 | % | (1.51 | )% | ||||||||||||||
(1) The above amount includes average nonaccrual loans of $4,136 for 2Q13, $3,980 for 1Q13, $3,337 for 4Q12, $4,114 for 3Q12, and $4,053 for 2Q12.
(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 $40 for 2Q13, $45 for 1Q13, $56 for 4Q12, $57 for 3Q12, and $59 for 2Q12.
10