Attached files
| file | filename |
|---|---|
| 8-K - 8-K - STATE BANK FINANCIAL CORP | a8kcoverpage123113.htm |
| EX-99.2 - EX-99.2 - STATE BANK FINANCIAL CORP | a4q13earningsslidesfinal.htm |
Media Contact: David Rubinger 404.502.1240 / david.rubinger@statebt.com
Investor Relations Contact: Jeremy Lucas 404.239.8626 / jeremy.lucas@statebt.com
State Bank Financial Corporation Reports
Fourth Quarter and Full Year Financial Results
▪ | Fourth quarter 2013 net income of $9.4 million, or $.28 per diluted share |
▪ | Covered loan balances decreased $217 million, or 46%, in 2013 |
▪ | Deposit funding mix continues to improve, contributing to low cost of funds |
ATLANTA, GA, January 30, 2014 - State Bank Financial Corporation (NASDAQ: STBZ) today announced unaudited financial results for the quarter and full year ended December 31, 2013. Net income for the fourth quarter of 2013 was $9.4 million, compared to $4.3 million for the third quarter of 2013 and $3.2 million for the fourth quarter of 2012. Full year net income for 2013 was $12.7 million compared to $22.7 million for full year 2012. Fully diluted earnings per share were $.28 in the fourth quarter of 2013 compared to $.13 in the third quarter of 2013 and $.10 in the fourth quarter of 2012. Fully diluted earnings per share were $.38 for full year 2013 compared to $.69 for full year 2012.
Joe Evans, Chairman and CEO, commented, "I could not be more pleased with what our team accomplished in 2013. Quantitatively, it was a year of effectively replacing covered assets with organic assets, improving deposit mix, strong asset quality metrics and improving efficiency. While less visible to outside observers, but perhaps more important, I am extremely pleased with the way our organization matured over the past year. As we move into 2014, I am highly confident that we have the people and processes in place as we transition through the expiration of loss share and plan to safely and profitably grow State Bank going forward."
Operating Highlights
Net interest income was $64.4 million in the fourth quarter of 2013, up from $44.4 million in the third quarter of 2013 and $43.4 million in the fourth quarter of 2012. Accretion income on covered loans was $48.1 million in the fourth quarter of 2013, which was a $20.1 million increase from the third quarter of 2013 due to gains from loan pools closing out in the fourth quarter of 2013. Interest income on noncovered loans for the fourth quarter of 2013 was $15.9 million, up from $15.8 million in the prior quarter and $15.1 million in the fourth quarter of 2012. The yield on noncovered loans increased slightly versus the prior quarter, up one basis point to 5.53% in the fourth quarter of 2013. Interest expense of $2.0 million in the fourth quarter of 2013 was down slightly versus the prior quarter and down from $2.1 million in the fourth quarter of 2012. Cost of funds for the fourth quarter of 2013 of 37 basis points improved one basis point from the prior quarter and two basis points from the fourth quarter of 2012.
The noncovered loan portfolio continues to perform well, as recoveries were greater than charge-offs in the fourth quarter of 2013, leading to no provision for loan losses on noncovered loans in the quarter.
1
The provision on noncovered loans totaled $905 thousand in the third quarter of 2013 and $325 thousand in the fourth quarter of 2012. The provision on covered loans, net of the FDIC benefit, was a negative $98 thousand in the fourth quarter of 2013 compared to a negative $636 thousand in the third quarter of 2013 and positive $3.0 million in the fourth quarter of 2012.
Noninterest income excluding amortization of the FDIC receivable for loss share agreements, which we refer to as the indemnification asset, was $4.0 million for the fourth quarter of 2013, down from $4.5 million in the third quarter of 2013. The linked-quarter decrease was primarily due to no gain on the sale of securities in the fourth quarter of 2013 compared to $717 thousand in securities gains in the third quarter of 2013. Additionally, higher payroll fee income from Altera Payment Solutions offset declines in service charge and mortgage banking income. Total noninterest income for the fourth quarter of 2013, which includes amortization of the indemnification asset, was negative $27.4 million compared to negative $14.5 million in the third quarter of 2013 and negative $10.6 million in the fourth quarter of 2012.
Amortization of the indemnification asset negatively impacted noninterest income by $31.4 million in the fourth quarter of 2013 compared to $19.0 million in the third quarter of 2013 and $15.3 million in the fourth quarter of 2012. We are currently projecting $49 million of scheduled amortization of the indemnification asset with an estimated weighted average life of three quarters, versus $185 million of scheduled loan accretion income with an estimated weighted average life of nine quarters. The $185 million of accretable discount remaining at December 31, 2013 is $45 million lower than at the end of the third quarter of 2013 but remains $12 million higher than at year-end 2012 as covered loans have performed better than initial estimates.
Total noninterest expense for the fourth quarter of 2013 was $22.7 million, down $406 thousand from the third quarter of 2013 and down $2.1 million from the fourth quarter of 2012. Noninterest expense declined for the third consecutive quarter as ongoing efficiency and productivity initiatives continue to positively impact our expense run-rate. Salary and benefit costs declined $294 thousand in the quarter to $14.5 million driven by position elimination, net of reinvestments in revenue producing initiatives. Loan collection and OREO costs increased $359 thousand, although this expense is primarily related to timing of loss share asset resolution rather than any fundamental trend.
Financial Condition
Total assets at quarter-end were $2.60 billion, up from $2.53 billion at September 30, 2013 and down from $2.66 billion at December 31, 2012. Loan payoffs exceeded new originations in the fourth quarter of 2013 as loans not covered by loss share agreements with the FDIC decreased a net $41.4 million from the third quarter of 2013 but increased a net $138.0 million from year-end 2012. The linked-quarter decrease was due to slightly lower origination volume, the delay in a few meaningful closings to 2014 and the expected payoffs of several large commercial real estate loans. Average noncovered loans increased a net $4.1 million from the third quarter of 2013 and $189.0 million from year-end 2012. Noncovered loans comprise 81.4% of total gross loans at December 31, 2013. Total net loans were $1.35 billion, down $79.5 million from the third quarter of 2013 and $43.2 million from the fourth quarter of 2012 as loan payoffs combined with covered loan resolution continue to impact net loans.
Total deposits at quarter-end were $2.13 billion, up from $2.05 billion at the end of the third quarter of 2013 but down from $2.15 billion at the end of the fourth quarter of 2012. Noninterest-bearing deposits increased $47.9 million from the third quarter of 2013 due to period-end volatility. A meaningful portion of this year-end activity in demand deposits was concentrated in a few accounts and is known to be a
2
short-term benefit. Period-end noninterest-bearing deposits made up 22.0% of total deposits at December 31, 2013. Average noninterest-bearing deposits increased $8.8 million from the third quarter of 2013 and $50.9 million from the fourth quarter of 2012.
Tangible book value per share was $13.24 at the end of the fourth quarter of 2013. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 16.55% and a Tier I risk-based capital ratio of 27.89%.
Detailed Results
Supplemental tables displaying financial results for the fourth quarter of 2013, the previous four quarters and full year 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. EST. The dial in number is 1.800.908.8386. 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 $2.6 billion in assets as of December 31, 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 and expectations of future growth, 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. See Item 1A, Risk Factors, in our Annual Report on Form 10-K for the year ended December 31, 2012, for a description of some of the important factors that may affect actual outcomes.
3
State Bank Financial Corporation 4Q13 Financial Supplement: Table 1 Condensed Consolidated Financial Summary Results Quarterly (Unaudited) | ||||||||||||||||||||||||||||
4Q13 Change vs. | ||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q12 | 3Q13 | 4Q12 | |||||||||||||||||||||
Income Statement Highlights | ||||||||||||||||||||||||||||
Total interest income on invested funds | $ | 2,416 | $ | 2,587 | $ | 2,693 | $ | 2,502 | $ | 2,585 | $ | (171 | ) | $ | (169 | ) | ||||||||||||
Interest income on noncovered loans, including fees | 15,861 | 15,800 | 15,141 | 14,374 | 15,053 | 61 | 808 | |||||||||||||||||||||
Accretion income on covered loans | 48,065 | 27,978 | 25,787 | 20,636 | 27,839 | 20,087 | 20,226 | |||||||||||||||||||||
Total interest expense | 1,961 | 1,981 | 1,995 | 1,996 | 2,096 | (20 | ) | (135 | ) | |||||||||||||||||||
Net interest income | 64,381 | 44,384 | 41,626 | 35,516 | 43,381 | 19,997 | 21,000 | |||||||||||||||||||||
Provision for loan losses (noncovered loans) | — | 905 | 665 | 350 | 325 | (905 | ) | (325 | ) | |||||||||||||||||||
Provision for loan losses (covered loans) | (98 | ) | (636 | ) | (1,288 | ) | (2,385 | ) | 3,021 | 538 | (3,119 | ) | ||||||||||||||||
Amortization of FDIC receivable for loss share agreements | (31,372 | ) | (18,971 | ) | (20,762 | ) | (16,779 | ) | (15,260 | ) | (12,401 | ) | (16,112 | ) | ||||||||||||||
Noninterest income | 3,955 | 4,471 | 4,224 | 4,121 | 4,641 | (516 | ) | (686 | ) | |||||||||||||||||||
Noninterest expense | 22,718 | 23,124 | 25,461 | 26,664 | 24,783 | (406 | ) | (2,065 | ) | |||||||||||||||||||
Income (loss) before income taxes | 14,344 | 6,491 | 250 | (1,771 | ) | 4,633 | 7,853 | 9,711 | ||||||||||||||||||||
Income tax expense (benefit) | 4,927 | 2,142 | 113 | (615 | ) | 1,418 | 2,785 | 3,509 | ||||||||||||||||||||
Net income (loss) | $ | 9,417 | $ | 4,349 | $ | 137 | $ | (1,156 | ) | $ | 3,215 | $ | 5,068 | $ | 6,202 | |||||||||||||
Per Common Share Data | ||||||||||||||||||||||||||||
Basic net income (loss) per share | $ | .29 | $ | .14 | $ | — | $ | (.04 | ) | $ | .10 | $ | .15 | $ | .19 | |||||||||||||
Diluted net income (loss) per share | .28 | .13 | — | (.04 | ) | .10 | .15 | .18 | ||||||||||||||||||||
Cash dividends declared per share | .03 | .03 | .03 | .03 | .03 | — | — | |||||||||||||||||||||
Book value per share at period end | 13.62 | 13.36 | 13.34 | 13.38 | 13.48 | .26 | .14 | |||||||||||||||||||||
Tangible book value per share at period end | 13.24 | 12.97 | 12.94 | 12.96 | 13.06 | .27 | .18 | |||||||||||||||||||||
Market price at period end | 18.19 | 15.87 | 15.03 | 16.37 | 15.88 | 2.32 | 2.31 | |||||||||||||||||||||
Period end shares outstanding | 32,094,145 | 32,076,645 | 31,926,331 | 31,918,665 | 31,908,665 | 17,500 | 185,480 | |||||||||||||||||||||
Weighted Average Shares Outstanding: | ||||||||||||||||||||||||||||
Basic | 32,086,781 | 31,998,901 | 31,918,677 | 31,908,776 | 31,904,381 | 87,880 | 182,400 | |||||||||||||||||||||
Diluted | 33,519,550 | 33,296,650 | 33,124,681 | 31,908,776 | 33,179,198 | 222,900 | 340,352 | |||||||||||||||||||||
Average Balance Sheet Highlights | ||||||||||||||||||||||||||||
Noncovered loans, net of unearned income | $ | 1,144,116 | $ | 1,140,052 | $ | 1,083,549 | $ | 1,007,094 | $ | 955,153 | $ | 4,064 | $ | 188,963 | ||||||||||||||
Covered loans | 258,600 | 305,487 | 351,955 | 419,204 | 499,828 | (46,887 | ) | (241,228 | ) | |||||||||||||||||||
Loans, net of unearned income | 1,402,716 | 1,445,539 | 1,435,504 | 1,426,298 | 1,454,981 | (42,823 | ) | (52,265 | ) | |||||||||||||||||||
Assets | 2,559,725 | 2,561,802 | 2,644,241 | 2,627,041 | 2,643,661 | (2,077 | ) | (83,936 | ) | |||||||||||||||||||
Deposits | 2,089,202 | 2,077,170 | 2,147,653 | 2,115,382 | 2,114,544 | 12,032 | (25,342 | ) | ||||||||||||||||||||
Liabilities | 2,130,231 | 2,134,590 | 2,217,002 | 2,197,455 | 2,212,404 | (4,359 | ) | (82,173 | ) | |||||||||||||||||||
Equity | 429,494 | 427,212 | 427,239 | 429,586 | 431,257 | 2,282 | (1,763 | ) | ||||||||||||||||||||
Tangible common equity | 417,030 | 414,516 | 414,181 | 416,155 | 421,617 | 2,514 | (4,587 | ) | ||||||||||||||||||||
Key Metrics (1) | ||||||||||||||||||||||||||||
Return on average assets | 1.46 | % | .67 | % | .02 | % | (.18 | )% | .48 | % | .79 | % | .98 | % | ||||||||||||||
Return on average equity | 8.70 | 4.04 | .13 | (1.09 | ) | 2.97 | 4.66 | 5.73 | ||||||||||||||||||||
Yield on earning assets | 11.61 | 8.31 | 7.76 | 6.95 | 8.48 | 3.30 | 3.13 | |||||||||||||||||||||
Cost of funds | .37 | .38 | .37 | .38 | .39 | (.01 | ) | (.02 | ) | |||||||||||||||||||
Rate on interest-bearing liabilities | .47 | .47 | .46 | .47 | .48 | — | (.01 | ) | ||||||||||||||||||||
Net interest margin | 11.26 | 7.95 | 7.40 | 6.58 | 8.09 | 3.31 | 3.17 | |||||||||||||||||||||
Average equity to average assets | 16.78 | 16.68 | 16.16 | 16.35 | 16.31 | .10 | .47 | |||||||||||||||||||||
Leverage ratio | 16.55 | 16.20 | 15.57 | 15.51 | 15.49 | .35 | 1.06 | |||||||||||||||||||||
Tier I risk-based capital ratio | 27.89 | 26.18 | 25.88 | 28.17 | 29.25 | 1.71 | (1.36 | ) | ||||||||||||||||||||
Total risk-based capital ratio | 29.15 | 27.44 | 27.14 | 29.45 | 30.54 | 1.71 | (1.39 | ) | ||||||||||||||||||||
Efficiency ratio | 61.26 | 77.13 | 101.08 | 116.14 | 75.42 | (15.87 | ) | (14.16 | ) | |||||||||||||||||||
Average loans to average deposits | 67.14 | 69.59 | 66.84 | 67.43 | 68.81 | (2.45 | ) | (1.67 | ) | |||||||||||||||||||
Noninterest-bearing deposits to total deposits | 22.00 | 20.50 | 20.22 | 19.07 | 18.03 | 1.50 | 3.97 | |||||||||||||||||||||
Nonperforming loans to total noncovered loans (2) | .21 | .25 | .33 | .42 | .49 | (.04 | ) | (.28 | ) | |||||||||||||||||||
Nonperforming assets to loans + ORE: | ||||||||||||||||||||||||||||
Noncovered | .29 | .33 | .42 | .44 | .60 | (.04 | ) | (.31 | ) | |||||||||||||||||||
Covered | 15.22 | 15.11 | 13.56 | 10.67 | 8.67 | .11 | 6.55 | |||||||||||||||||||||
(1) Income 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.
4
State Bank Financial Corporation 4Q13 Financial Supplement: Table 2 Condensed Consolidated Balance Sheets Quarterly (Unaudited) | ||||||||||||||||||||||||||||
4Q13 Change vs. | ||||||||||||||||||||||||||||
(Dollars in thousands) | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q12 | 3Q13 | 4Q12 | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Cash and amounts due from depository institutions | $ | 8,518 | $ | 7,888 | $ | 6,783 | $ | 7,680 | $ | 9,974 | $ | 630 | $ | (1,456 | ) | |||||||||||||
Interest-bearing deposits in other financial institutions | 590,231 | 399,267 | 430,937 | 459,494 | 433,483 | 190,964 | 156,748 | |||||||||||||||||||||
Cash and cash equivalents | 598,749 | 407,155 | 437,720 | 467,174 | 443,457 | 191,594 | 155,292 | |||||||||||||||||||||
Investment securities available-for-sale | 387,048 | 374,838 | 370,146 | 351,565 | 303,901 | 12,210 | 83,147 | |||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||||||||||
Noncovered under FDIC loss share agreements | 1,123,475 | 1,164,854 | 1,123,122 | 1,051,455 | 985,502 | (41,379 | ) | 137,973 | ||||||||||||||||||||
Covered under FDIC loss share agreements | 257,494 | 290,077 | 333,683 | 396,831 | 474,713 | (32,583 | ) | (217,219 | ) | |||||||||||||||||||
Allowance for loan losses (noncovered loans) | (16,656 | ) | (16,427 | ) | (15,805 | ) | (15,122 | ) | (14,660 | ) | (229 | ) | (1,996 | ) | ||||||||||||||
Allowance for loan losses (covered loans) | (17,409 | ) | (12,075 | ) | (17,630 | ) | (28,706 | ) | (55,478 | ) | (5,334 | ) | 38,069 | |||||||||||||||
Net loans | 1,346,904 | 1,426,429 | 1,423,370 | 1,404,458 | 1,390,077 | (79,525 | ) | (43,173 | ) | |||||||||||||||||||
Mortgage loans held for sale | 897 | 885 | 753 | 2,386 | 4,853 | 12 | (3,956 | ) | ||||||||||||||||||||
Other real estate owned: | ||||||||||||||||||||||||||||
Noncovered under FDIC loss share agreements | 965 | 974 | 1,097 | 276 | 1,115 | (9 | ) | (150 | ) | |||||||||||||||||||
Covered under FDIC loss share agreements | 46,222 | 51,651 | 52,345 | 47,401 | 45,062 | (5,429 | ) | 1,160 | ||||||||||||||||||||
Premises and equipment, net | 33,318 | 33,988 | 34,856 | 35,379 | 35,364 | (670 | ) | (2,046 | ) | |||||||||||||||||||
Goodwill | 10,381 | 10,381 | 10,381 | 10,381 | 10,381 | — | — | |||||||||||||||||||||
Other intangibles, net | 1,986 | 2,150 | 2,449 | 2,819 | 3,188 | (164 | ) | (1,202 | ) | |||||||||||||||||||
FDIC receivable for loss share agreements | 103,160 | 156,549 | 210,557 | 258,848 | 355,325 | (53,389 | ) | (252,165 | ) | |||||||||||||||||||
Other assets | 71,075 | 62,101 | 64,023 | 60,619 | 68,311 | 8,974 | 2,764 | |||||||||||||||||||||
Total assets | $ | 2,600,705 | $ | 2,527,101 | $ | 2,607,697 | $ | 2,641,306 | $ | 2,661,034 | $ | 73,604 | $ | (60,329 | ) | |||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 468,138 | $ | 420,269 | $ | 429,960 | $ | 409,717 | $ | 387,450 | $ | 47,869 | $ | 80,688 | ||||||||||||||
Interest-bearing deposits | 1,660,187 | 1,629,642 | 1,696,124 | 1,738,473 | 1,760,986 | 30,545 | (100,799 | ) | ||||||||||||||||||||
Total deposits | 2,128,325 | 2,049,911 | 2,126,084 | 2,148,190 | 2,148,436 | 78,414 | (20,111 | ) | ||||||||||||||||||||
Securities sold under agreements to repurchase | 1,216 | 1,082 | 3,576 | 3,959 | 4,755 | 134 | (3,539 | ) | ||||||||||||||||||||
Notes payable | 5,682 | 5,690 | 5,698 | 3,861 | 2,523 | (8 | ) | 3,159 | ||||||||||||||||||||
Other liabilities | 28,299 | 41,825 | 46,413 | 58,360 | 75,104 | (13,526 | ) | (46,805 | ) | |||||||||||||||||||
Total liabilities | 2,163,522 | 2,098,508 | 2,181,771 | 2,214,370 | 2,230,818 | 65,014 | (67,296 | ) | ||||||||||||||||||||
Total shareholders’ equity | 437,183 | 428,593 | 425,926 | 426,936 | 430,216 | 8,590 | 6,967 | |||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,600,705 | $ | 2,527,101 | $ | 2,607,697 | $ | 2,641,306 | $ | 2,661,034 | $ | 73,604 | $ | (60,329 | ) | |||||||||||||
Capital Ratios | ||||||||||||||||||||||||||||
Average equity to average assets | 16.78 | % | 16.79 | % | 16.16 | % | 16.35 | % | 16.32 | % | (.01 | )% | .46 | % | ||||||||||||||
Leverage ratio | 16.55 | 16.20 | 15.57 | 15.51 | 15.49 | .35 | 1.06 | |||||||||||||||||||||
Tier I risk-based capital ratio | 27.89 | 26.18 | 25.88 | 28.17 | 29.25 | 1.71 | (1.36 | ) | ||||||||||||||||||||
Total risk-based capital ratio | 29.15 | 27.44 | 27.14 | 29.45 | 30.54 | 1.71 | (1.39 | ) | ||||||||||||||||||||
5
State Bank Financial Corporation 4Q13 Financial Supplement: Table 3 Condensed Consolidated Income Statements Quarterly (Unaudited) | ||||||||||||||||||||||||||||
4Q13 Change vs. | ||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q12 | 3Q13 | 4Q12 | |||||||||||||||||||||
Total interest income on invested funds | $ | 2,416 | $ | 2,587 | $ | 2,693 | $ | 2,502 | $ | 2,585 | $ | (171 | ) | $ | (169 | ) | ||||||||||||
Interest income on noncovered loans, including fees | 15,861 | 15,800 | 15,141 | 14,374 | 15,053 | 61 | 808 | |||||||||||||||||||||
Accretion income on covered loans | 48,065 | 27,978 | 25,787 | 20,636 | 27,839 | 20,087 | 20,226 | |||||||||||||||||||||
Total interest expense | 1,961 | 1,981 | 1,995 | 1,996 | 2,096 | (20 | ) | (135 | ) | |||||||||||||||||||
Net interest income | 64,381 | 44,384 | 41,626 | 35,516 | 43,381 | 19,997 | 21,000 | |||||||||||||||||||||
Provision for loan losses (noncovered loans) | — | 905 | 665 | 350 | 325 | (905 | ) | (325 | ) | |||||||||||||||||||
Provision for loan losses (covered loans) | (98 | ) | (636 | ) | (1,288 | ) | (2,385 | ) | 3,021 | 538 | (3,119 | ) | ||||||||||||||||
Net interest income after provision for loan losses | 64,479 | 44,115 | 42,249 | 37,551 | 40,035 | 20,364 | 24,444 | |||||||||||||||||||||
Noninterest Income: | ||||||||||||||||||||||||||||
Amortization of FDIC receivable for loss share agreements | (31,372 | ) | (18,971 | ) | (20,762 | ) | (16,779 | ) | (15,260 | ) | (12,401 | ) | (16,112 | ) | ||||||||||||||
Service charges on deposits | 1,304 | 1,353 | 1,284 | 1,215 | 1,408 | (49 | ) | (104 | ) | |||||||||||||||||||
Mortgage banking income | 153 | 260 | 289 | 306 | 363 | (107 | ) | (210 | ) | |||||||||||||||||||
Gain on sale of investment securities | — | 717 | — | 364 | 225 | (717 | ) | (225 | ) | |||||||||||||||||||
Gain on FHLB stock redemptions | — | — | — | — | 680 | — | (680 | ) | ||||||||||||||||||||
Payroll fee income | 879 | 727 | 705 | 832 | 622 | 152 | 257 | |||||||||||||||||||||
ATM income | 604 | 604 | 635 | 605 | 619 | — | (15 | ) | ||||||||||||||||||||
Other | 1,015 | 810 | 1,311 | 799 | 724 | 205 | 291 | |||||||||||||||||||||
Total noninterest income | (27,417 | ) | (14,500 | ) | (16,538 | ) | (12,658 | ) | (10,619 | ) | (12,917 | ) | (16,798 | ) | ||||||||||||||
Noninterest Expense: | ||||||||||||||||||||||||||||
Salaries and employee benefits | 14,500 | 14,794 | 15,547 | 17,395 | 15,134 | (294 | ) | (634 | ) | |||||||||||||||||||
Occupancy and equipment | 2,330 | 2,431 | 2,550 | 2,456 | 2,500 | (101 | ) | (170 | ) | |||||||||||||||||||
Legal and professional fees | 1,154 | 954 | 1,280 | 1,601 | 1,669 | 200 | (515 | ) | ||||||||||||||||||||
Marketing | 369 | 457 | 350 | 328 | 968 | (88 | ) | (599 | ) | |||||||||||||||||||
Federal insurance premiums and other regulatory fees | 303 | 939 | 604 | 469 | 673 | (636 | ) | (370 | ) | |||||||||||||||||||
Loan collection and OREO costs | 733 | 374 | 1,944 | 1,288 | 929 | 359 | (196 | ) | ||||||||||||||||||||
Data processing | 1,595 | 1,551 | 1,504 | 1,437 | 1,272 | 44 | 323 | |||||||||||||||||||||
Amortization of intangibles | 164 | 299 | 369 | 370 | 251 | (135 | ) | (87 | ) | |||||||||||||||||||
Other | 1,570 | 1,325 | 1,313 | 1,320 | 1,387 | 245 | 183 | |||||||||||||||||||||
Total noninterest expense | 22,718 | 23,124 | 25,461 | 26,664 | 24,783 | (406 | ) | (2,065 | ) | |||||||||||||||||||
Income (Loss) Before Income Taxes | 14,344 | 6,491 | 250 | (1,771 | ) | 4,633 | 7,853 | 9,711 | ||||||||||||||||||||
Income tax expense (benefit) | 4,927 | 2,142 | 113 | (615 | ) | 1,418 | 2,785 | 3,509 | ||||||||||||||||||||
Net Income (Loss) | $ | 9,417 | $ | 4,349 | $ | 137 | $ | (1,156 | ) | $ | 3,215 | $ | 5,068 | $ | 6,202 | |||||||||||||
Basic Net Income (Loss) Per Share | $ | .29 | $ | .14 | $ | — | $ | (.04 | ) | $ | .10 | $ | .15 | $ | .19 | |||||||||||||
Diluted Net Income (Loss) Per Share | .28 | .13 | — | (.04 | ) | .10 | .15 | .18 | ||||||||||||||||||||
Weighted Average Shares Outstanding: | ||||||||||||||||||||||||||||
Basic | 32,086,781 | 31,998,901 | 31,918,677 | 31,908,776 | 31,904,381 | 87,880 | 182,400 | |||||||||||||||||||||
Diluted | 33,519,550 | 33,296,650 | 33,124,681 | 31,908,776 | 33,179,198 | 222,900 | 340,352 | |||||||||||||||||||||
6
State Bank Financial Corporation 4Q13 Financial Supplement: Table 4 Condensed Consolidated Income Statements Year to Date (Unaudited) | ||||||||||||
Years Ended December 31 | YTD Change | |||||||||||
(Dollars in thousands, except per share amounts) | 2013 | 2012 | ||||||||||
Total interest income on invested funds | $ | 10,198 | $ | 11,390 | $ | (1,192 | ) | |||||
Interest income on noncovered loans, including fees | 61,176 | 55,460 | 5,716 | |||||||||
Accretion income on covered loans | 122,466 | 102,413 | 20,053 | |||||||||
Total interest expense | 7,933 | 9,749 | (1,816 | ) | ||||||||
Net interest income | 185,907 | 159,514 | 26,393 | |||||||||
Provision for loan losses (noncovered loans) | 1,920 | 5,035 | (3,115 | ) | ||||||||
Provision for loan losses (covered loans) | (4,407 | ) | 10,081 | (14,488 | ) | |||||||
Net interest income after provision for loan losses | 188,394 | 144,398 | 43,996 | |||||||||
Noninterest Income: | ||||||||||||
Amortization of FDIC receivable for loss share agreements | (87,884 | ) | (32,569 | ) | (55,315 | ) | ||||||
Service charges on deposits | 5,156 | 5,117 | 39 | |||||||||
Mortgage banking income | 1,008 | 1,231 | (223 | ) | ||||||||
Gain on sale of investment securities | 1,081 | 318 | 763 | |||||||||
Gains on FHLB stock redemptions | — | 1,215 | (1,215 | ) | ||||||||
Payroll fee income | 3,143 | 622 | 2,521 | |||||||||
ATM income | 2,448 | 2,425 | 23 | |||||||||
Other | 3,935 | 1,643 | 2,292 | |||||||||
Total noninterest income | (71,113 | ) | (19,998 | ) | (51,115 | ) | ||||||
Noninterest Expense: | ||||||||||||
Salaries and employee benefits | 62,236 | 54,536 | 7,700 | |||||||||
Occupancy and equipment | 9,767 | 9,845 | (78 | ) | ||||||||
Legal and professional fees | 4,989 | 6,624 | (1,635 | ) | ||||||||
Marketing | 1,504 | 2,171 | (667 | ) | ||||||||
Federal insurance premiums and other regulatory fees | 2,315 | 1,824 | 491 | |||||||||
Loan collection and OREO costs | 4,339 | 1,960 | 2,379 | |||||||||
Data processing | 6,087 | 5,668 | 419 | |||||||||
Amortization of intangibles | 1,202 | 1,029 | 173 | |||||||||
Other | 5,528 | 5,579 | (51 | ) | ||||||||
Total noninterest expense | 97,967 | 89,236 | 8,731 | |||||||||
Income Before Income Taxes | 19,314 | 35,164 | (15,850 | ) | ||||||||
Income tax expense | 6,567 | 12,422 | (5,855 | ) | ||||||||
Net Income | $ | 12,747 | $ | 22,742 | $ | (9,995 | ) | |||||
Basic Net Income Per Share | $ | .40 | $ | .72 | $ | (.32 | ) | |||||
Diluted Net Income Per Share | .38 | .69 | (.31 | ) | ||||||||
Weighted Average Shares Outstanding: | ||||||||||||
Basic | 31,978,844 | 31,696,358 | 282,486 | |||||||||
Diluted | 33,290,565 | 32,890,274 | 400,291 | |||||||||
7
State Bank Financial Corporation 4Q13 Financial Supplement: Table 5 Condensed Consolidated Composition of Loans and Deposits at Period Ends Quarterly (Unaudited) | ||||||||||||||||||||||||||||
4Q13 Change vs. | ||||||||||||||||||||||||||||
(Dollars in thousands) | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q12 | 3Q13 | 4Q12 | |||||||||||||||||||||
Composition of Loans | ||||||||||||||||||||||||||||
Noncovered loans: | ||||||||||||||||||||||||||||
Construction, land & land development | $ | 251,043 | $ | 285,855 | $ | 295,756 | $ | 265,055 | $ | 230,448 | $ | (34,812 | ) | $ | 20,595 | |||||||||||||
Other commercial real estate | 550,474 | 552,579 | 508,620 | 486,287 | 457,729 | (2,105 | ) | 92,745 | ||||||||||||||||||||
Total commercial real estate | 801,517 | 838,434 | 804,376 | 751,342 | 688,177 | (36,917 | ) | 113,340 | ||||||||||||||||||||
Commercial & industrial | 30,145 | 27,573 | 33,908 | 35,944 | 35,390 | 2,572 | (5,245 | ) | ||||||||||||||||||||
Owner-occupied real estate | 174,858 | 181,882 | 186,652 | 176,426 | 172,445 | (7,024 | ) | 2,413 | ||||||||||||||||||||
Total commercial & industrial | 205,003 | 209,455 | 220,560 | 212,370 | 207,835 | (4,452 | ) | (2,832 | ) | |||||||||||||||||||
Residential real estate | 66,835 | 63,386 | 53,962 | 45,433 | 43,179 | 3,449 | 23,656 | |||||||||||||||||||||
Consumer & other | 50,120 | 53,579 | 44,224 | 42,310 | 46,311 | (3,459 | ) | 3,809 | ||||||||||||||||||||
Total noncovered loans | 1,123,475 | 1,164,854 | 1,123,122 | 1,051,455 | 985,502 | (41,379 | ) | 137,973 | ||||||||||||||||||||
Covered loans: | ||||||||||||||||||||||||||||
Construction, land & land development | 35,383 | 40,268 | 51,660 | 58,802 | 81,288 | (4,885 | ) | (45,905 | ) | |||||||||||||||||||
Other commercial real estate | 67,573 | 77,040 | 91,246 | 115,194 | 139,010 | (9,467 | ) | (71,437 | ) | |||||||||||||||||||
Total commercial real estate | 102,956 | 117,308 | 142,906 | 173,996 | 220,298 | (14,352 | ) | (117,342 | ) | |||||||||||||||||||
Commercial & industrial | 4,271 | 6,378 | 8,059 | 10,811 | 14,859 | (2,107 | ) | (10,588 | ) | |||||||||||||||||||
Owner-occupied real estate | 54,436 | 55,723 | 67,568 | 80,239 | 86,612 | (1,287 | ) | (32,176 | ) | |||||||||||||||||||
Total commercial & industrial | 58,707 | 62,101 | 75,627 | 91,050 | 101,471 | (3,394 | ) | (42,764 | ) | |||||||||||||||||||
Residential real estate | 95,240 | 109,806 | 114,036 | 131,254 | 142,032 | (14,566 | ) | (46,792 | ) | |||||||||||||||||||
Consumer & other | 591 | 862 | 1,114 | 531 | 10,912 | (271 | ) | (10,321 | ) | |||||||||||||||||||
Total covered loans | 257,494 | 290,077 | 333,683 | 396,831 | 474,713 | (32,583 | ) | (217,219 | ) | |||||||||||||||||||
Total loans | $ | 1,380,969 | $ | 1,454,931 | $ | 1,456,805 | $ | 1,448,286 | $ | 1,460,215 | $ | (73,962 | ) | $ | (79,246 | ) | ||||||||||||
Composition of Deposits | ||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 468,138 | $ | 420,269 | $ | 429,960 | $ | 409,717 | $ | 387,450 | $ | 47,869 | $ | 80,688 | ||||||||||||||
Interest-bearing transaction accounts | 367,983 | 304,085 | 351,289 | 333,336 | 355,651 | 63,898 | 12,332 | |||||||||||||||||||||
Savings and money market deposits | 892,136 | 908,410 | 911,415 | 959,912 | 949,631 | (16,274 | ) | (57,495 | ) | |||||||||||||||||||
Time deposits less than $100,000 | 168,611 | 177,634 | 186,874 | 194,098 | 201,658 | (9,023 | ) | (33,047 | ) | |||||||||||||||||||
Time deposits $100,000 or greater | 124,827 | 132,538 | 139,671 | 144,501 | 147,363 | (7,711 | ) | (22,536 | ) | |||||||||||||||||||
Brokered and wholesale time deposits | 106,630 | 106,975 | 106,875 | 106,626 | 106,683 | (345 | ) | (53 | ) | |||||||||||||||||||
Total deposits | $ | 2,128,325 | $ | 2,049,911 | $ | 2,126,084 | $ | 2,148,190 | $ | 2,148,436 | $ | 78,414 | $ | (20,111 | ) | |||||||||||||
8
State Bank Financial Corporation 4Q13 Financial Supplement: Table 6 Condensed Consolidated Asset Quality Data Quarterly (Unaudited) | ||||||||||||||||||||||||||||
4Q13 Change vs. | ||||||||||||||||||||||||||||
(Dollars in thousands) | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q12 | 3Q13 | 4Q12 | |||||||||||||||||||||
Nonperforming noncovered assets: | ||||||||||||||||||||||||||||
Nonaccrual loans | $ | 1,391 | $ | 1,972 | $ | 2,695 | $ | 3,413 | $ | 2,621 | $ | (581 | ) | $ | (1,230 | ) | ||||||||||||
Troubled debt restructurings | 947 | 956 | 973 | 970 | 2,171 | (9 | ) | (1,224 | ) | |||||||||||||||||||
Total nonperforming noncovered loans | 2,338 | 2,928 | 3,668 | 4,383 | 4,792 | (590 | ) | (2,454 | ) | |||||||||||||||||||
Other real estate owned | 965 | 974 | 1,097 | 276 | 1,115 | (9 | ) | (150 | ) | |||||||||||||||||||
Total nonperforming noncovered assets | 3,303 | 3,902 | 4,765 | 4,659 | 5,907 | (599 | ) | (2,604 | ) | |||||||||||||||||||
Nonperforming covered assets: | ||||||||||||||||||||||||||||
Other real estate owned (1) | $ | 46,222 | $ | 51,651 | $ | 52,345 | $ | 47,401 | $ | 45,062 | $ | (5,429 | ) | $ | 1,160 | |||||||||||||
Noncovered assets: | ||||||||||||||||||||||||||||
Charge-offs | $ | 67 | $ | 330 | $ | 8 | $ | 12 | $ | 2 | $ | (263 | ) | $ | 65 | |||||||||||||
Recoveries | 296 | 47 | 26 | 124 | 7 | 249 | 289 | |||||||||||||||||||||
Net charge-offs (recoveries) | $ | (229 | ) | $ | 283 | $ | (18 | ) | $ | (112 | ) | $ | (5 | ) | $ | (512 | ) | $ | (224 | ) | ||||||||
Ratios: | ||||||||||||||||||||||||||||
Annualized QTD net charge-offs (recoveries) to total average noncovered loans | (.08 | )% | .10 | % | (.01 | )% | (.05 | )% | — | % | (.18 | )% | (.08 | )% | ||||||||||||||
Nonperforming loans to total noncovered loans (2) | .21 | .25 | .33 | .42 | .49 | (.04 | ) | (.28 | ) | |||||||||||||||||||
Nonperforming assets to loans + ORE: | ||||||||||||||||||||||||||||
Noncovered | .29 | .33 | .42 | .44 | .60 | (.04 | ) | (.31 | ) | |||||||||||||||||||
Covered | 15.22 | 15.11 | 13.56 | 10.67 | 8.67 | .11 | 6.55 | |||||||||||||||||||||
Allowance for loan losses to loans: | ||||||||||||||||||||||||||||
Noncovered | 1.48 | 1.41 | 1.41 | 1.44 | 1.49 | .07 | (.01 | ) | ||||||||||||||||||||
Covered | 6.76 | 4.16 | 5.28 | 7.23 | 11.69 | 2.60 | (4.93 | ) | ||||||||||||||||||||
(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 4Q13 Financial Supplement: Table 7 Condensed Consolidated Average Balances and Yield Analysis Quarterly (Unaudited) | ||||||||||||||||||||||||||||
4Q13 Change vs. | ||||||||||||||||||||||||||||
(Dollars in thousands) | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q12 | 3Q13 | 4Q12 | |||||||||||||||||||||
Selected Average Balances | ||||||||||||||||||||||||||||
Interest-bearing deposits in other financial institutions | $ | 489,046 | $ | 398,391 | $ | 465,823 | $ | 447,929 | $ | 371,873 | $ | 90,655 | $ | 117,173 | ||||||||||||||
Taxable investment securities | 374,416 | 369,485 | 352,955 | 314,510 | 302,102 | 4,931 | 72,314 | |||||||||||||||||||||
Nontaxable investment securities | 5,559 | 5,836 | 6,436 | 7,089 | 9,028 | (277 | ) | (3,469 | ) | |||||||||||||||||||
Noncovered loans receivable (1) | 1,144,116 | 1,140,052 | 1,083,549 | 1,007,094 | 955,153 | 4,064 | 188,963 | |||||||||||||||||||||
Covered loans receivable | 258,600 | 305,487 | 351,955 | 419,204 | 499,828 | (46,887 | ) | (241,228 | ) | |||||||||||||||||||
Total earning assets | 2,271,737 | 2,219,251 | 2,260,718 | 2,195,826 | 2,137,984 | 52,486 | 133,753 | |||||||||||||||||||||
Total nonearning assets | 287,988 | 342,551 | 383,523 | 431,215 | 505,677 | (54,563 | ) | (217,689 | ) | |||||||||||||||||||
Total assets | 2,559,725 | 2,561,802 | 2,644,241 | 2,627,041 | 2,643,661 | (2,077 | ) | (83,936 | ) | |||||||||||||||||||
Interest-bearing transaction accounts | 338,502 | 320,168 | 360,221 | 324,342 | 315,541 | 18,334 | 22,961 | |||||||||||||||||||||
Savings & money market deposits | 909,999 | 908,275 | 936,819 | 956,517 | 954,260 | 1,724 | (44,261 | ) | ||||||||||||||||||||
Time deposits less than $100,000 | 173,061 | 181,865 | 190,795 | 197,893 | 204,821 | (8,804 | ) | (31,760 | ) | |||||||||||||||||||
Time deposits $100,000 or greater | 129,384 | 137,147 | 142,364 | 145,329 | 152,534 | (7,763 | ) | (23,150 | ) | |||||||||||||||||||
Brokered and wholesale time deposits | 106,676 | 106,918 | 106,818 | 106,641 | 106,712 | (242 | ) | (36 | ) | |||||||||||||||||||
Notes payable | 5,686 | 5,695 | 5,026 | 2,536 | 2,525 | (9 | ) | 3,161 | ||||||||||||||||||||
Securities sold under agreements to repurchase | 675 | 2,438 | 5,083 | 3,388 | 5,352 | (1,763 | ) | (4,677 | ) | |||||||||||||||||||
Total interest-bearing liabilities | 1,663,983 | 1,662,506 | 1,747,126 | 1,736,646 | 1,741,745 | 1,477 | (77,762 | ) | ||||||||||||||||||||
Noninterest-bearing deposits | 431,580 | 422,797 | 410,636 | 384,660 | 380,676 | 8,783 | 50,904 | |||||||||||||||||||||
Other liabilities | 34,668 | 49,287 | 59,240 | 76,149 | 89,983 | (14,619 | ) | (55,315 | ) | |||||||||||||||||||
Shareholders’ equity | 429,494 | 427,212 | 427,239 | 429,586 | 431,257 | 2,282 | (1,763 | ) | ||||||||||||||||||||
Total liabilities and shareholders' equity | 2,559,725 | 2,561,802 | 2,644,241 | 2,627,041 | 2,643,661 | (2,077 | ) | (83,936 | ) | |||||||||||||||||||
Interest Margins (2) | ||||||||||||||||||||||||||||
Interest-bearing deposits in other financial institutions | .27 | % | .31 | % | .27 | % | .23 | % | .27 | % | (.04 | )% | — | % | ||||||||||||||
Taxable investment securities | 2.16 | 2.39 | 2.65 | 2.83 | 2.97 | (.23 | ) | (.81 | ) | |||||||||||||||||||
Nontaxable investment securities, tax-equivalent basis (3) | 4.92 | 4.89 | 4.86 | 5.09 | 5.29 | .03 | (.37 | ) | ||||||||||||||||||||
Noncovered loans receivable, tax-equivalent basis (4) | 5.53 | 5.52 | 5.63 | 5.82 | 6.29 | .01 | (.76 | ) | ||||||||||||||||||||
Covered loans receivable | 73.74 | 36.34 | 29.39 | 19.96 | 22.16 | 37.40 | 51.58 | |||||||||||||||||||||
Total earning assets | 11.61 | % | 8.31 | % | 7.76 | % | 6.95 | % | 8.48 | % | 3.30 | % | 3.13 | % | ||||||||||||||
Interest-bearing transaction accounts | .11 | .11 | .10 | .12 | .11 | — | — | |||||||||||||||||||||
Savings & money market deposits | .43 | .42 | .42 | .43 | .45 | .01 | (.02 | ) | ||||||||||||||||||||
Time deposits less than $100,000 | .55 | .57 | .59 | .59 | .62 | (.02 | ) | (.07 | ) | |||||||||||||||||||
Time deposits $100,000 or greater | .67 | .71 | .72 | .74 | .75 | (.04 | ) | (.08 | ) | |||||||||||||||||||
Brokered and wholesale time deposits | .93 | .93 | .93 | .93 | .94 | — | (.01 | ) | ||||||||||||||||||||
Notes payable | 11.44 | 11.49 | 10.77 | 12.79 | 8.67 | (.05 | ) | 2.77 | ||||||||||||||||||||
Securities sold under agreements to repurchase | — | .16 | .08 | .12 | .07 | (.16 | ) | (.07 | ) | |||||||||||||||||||
Total interest-bearing liabilities | .47 | .47 | .46 | .47 | .48 | — | (.01 | ) | ||||||||||||||||||||
Net interest spread | 11.14 | 7.84 | 7.30 | 6.48 | 8.00 | 3.30 | 3.14 | |||||||||||||||||||||
Net interest margin | 11.26 | % | 7.95 | % | 7.40 | % | 6.58 | % | 8.09 | % | 3.31 | % | 3.17 | % | ||||||||||||||
(1) The above amount includes average nonaccrual loans of $2,642 for 4Q13, $2,371 for 3Q13, $4,136 for 2Q13, $3,980 for 1Q13, and $3,337 for 4Q12.
(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 a fully taxable basis. The taxable equivalent adjustments included above amount to $24 for 4Q13, $25 for 3Q13, $27 for 2Q13, $31 for 1Q13, and $42 for 4Q12.
(4) Reflects taxable equivalent adjustments using the statutory tax rate of 35% in adjusting tax-exempt loan interest income to a fully taxable basis. The taxable equivalent adjustments included above amount to $97 for 4Q13, $72 for 3Q13, $73 for 2Q13, $69 for 1Q13, and $55 for 4Q12.
10