STATE BANK FINANCIAL CORP - FORM 8-K - EX-99.1

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8-K - 8-K - STATE BANK FINANCIAL CORP	a8kcoverpage123114.htm
EX-99.2 - EX-99.2 - STATE BANK FINANCIAL CORP	a4q14earningspresentatio.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

Full Year and Fourth Quarter 2014 Financial Results


▪	Full year 2014 net income of $30.9 million, or $.92 per diluted share


▪	Organic loan growth of $197 million, or 17.5%, for full year 2014


▪	Continued growth in transaction account balances and treasury services


▪	Merger, conversion and integration of Bank of Atlanta successfully completed

ATLANTA, GA, January 29, 2015 - State Bank Financial Corporation (NASDAQ: STBZ) today announced unaudited financial results for the full year and fourth quarter ended December 31, 2014. Full year net income for 2014 was $30.9 million, compared to $12.7 million for full year 2013. Net income for the fourth quarter of 2014 was $7.6 million, compared to $9.4 million for the fourth quarter of 2013 and $11.5 million for the third quarter of 2014. Fully diluted earnings per share were $.92 for full year 2014 compared to $.38 for full year 2013. Fully diluted earnings per share were $.22 in the fourth quarter of 2014 compared to $.28 in the fourth quarter of 2013 and $.34 in the third quarter of 2014.

Joe Evans, Chairman and CEO, commented, "The fourth quarter of 2014 was a solid finish to a very successful year marked by strong growth in loans and transaction deposits, excellent credit metrics and the acquisition of two healthy banks. We were also pleased to see the fifth anniversaries of our largest loss share acquisitions pass uneventfully. The momentum and pipelines we have going into 2015 cause me to be very optimistic about what lies ahead."

Operating Highlights

Net interest income was $32.5 million in the fourth quarter of 2014, down from $38.0 million in the third quarter of 2014. A $7.0 million decline in accretion income offset $1.3 million in growth in interest income, resulting in the decline in net interest income. Accretion income on loans was $14.1 million in the fourth quarter of 2014, down from $21.1 million in the third quarter of 2014. The higher accretion income in the previous quarter was due primarily to timing of gains from purchased loan pools closing out in the third quarter of 2014. Interest income on loans, excluding purchased credit impaired ("PCI") loans, for the fourth quarter of 2014 was $17.4 million, up from $16.2 million in the prior quarter. Interest expense of $1.9 million in the fourth quarter of 2014 was essentially flat with the prior quarter and prior year period. Cost of funds for the fourth quarter of 2014 was 33 basis points, down two basis points from the prior quarter and four basis points from the prior year period.

The organic loan portfolio continued to perform well in the fourth quarter of 2014 as past due loans represented 17 basis points of total organic loans. The provision for loan losses was $1.2 million in the fourth quarter of 2014 and was primarily attributable to organic loan growth in the quarter.

Noninterest income, excluding accretion/(amortization) of the FDIC receivable for loss share agreements (which we refer to as the indemnification asset), was $5.3 million for the fourth quarter of 2014, up from $3.6 million in the third quarter of 2014 due primarily to higher prepayment fees on loans, SBA income and payroll fee income.

Total noninterest income for the fourth quarter of 2014, which includes accretion/(amortization) of the indemnification asset, was $6.9 million, compared to $3.4 million in the third quarter of 2014. We recognized accretion of the indemnification asset of $1.7 million in the fourth quarter of 2014, as opposed to amortization of the indemnification asset in prior quarters. Upon expiration of the two commercial loss share agreements in the fourth quarter, it became apparent that our actual collections would exceed our estimated collections, thereby reducing the reserve allocated for disallowed claims resulting in the reversal to accretion from amortization of the indemnification asset.

Total noninterest expense for the fourth quarter of 2014 was $25.8 million, a $3.3 million increase from the third quarter of 2014 due primarily to higher salary and benefit costs. Approximately $1.5 million of the $3.2 million linked-quarter increase in salary and benefit cost was due to severance costs related to executive management realignment and headcount reductions. The staff reductions have been partially offset by additional personnel in mortgage, SBA and payroll growth initiatives. Additionally, $1.1 million of the quarterly increase was related to increased headcount and retention payments from the Bank of Atlanta merger. Personnel cost savings of approximately $315 thousand related to staff reductions following the conversion of Bank of Atlanta will be largely recognized in the first quarter of 2015. Additionally, merger-related expenses for the fourth quarter and full year 2014 totaled $306 thousand and $795 thousand, respectively.

Financial Condition

Total assets at December 31, 2014 were $2.88 billion, up from $2.65 billion at September 30, 2014 and $2.61 billion at December 31, 2013. Total net loans were $1.61 billion at December 31, 2014, up $128.4 million from the third quarter of 2014 primarily due to a $116.0 million increase related to our acquisition of Bank of Atlanta.

Period-end organic loans increased to $1.32 billion at December 31, 2014, a net increase of $28.5 million from the third quarter of 2014 and $196.9 million from year-end 2013. Period-end organic loans comprised 87.4% of total gross loans at December 31, 2014. Purchased non-credit impaired loans from Bank of Atlanta totaled $107.8 million at year-end 2014. Purchased credit impaired loans decreased to $206.3 million and included $8.2 million of PCI loans from our acquisition of Bank of Atlanta.

Total deposits at December 31, 2014 were $2.39 billion, up from $2.16 billion at the end of the third quarter of 2014 and $2.13 billion at the end of the fourth quarter of 2013. Period-end noninterest-bearing demand deposits and interest-bearing transaction accounts, which make up total transaction accounts, increased $171.4 million from the third quarter of 2014, inclusive of $39.4 million of transaction deposits acquired from Bank of Atlanta. Period-end noninterest-bearing demand deposits increased $52.7 million from the third quarter of 2014, inclusive of $32.2 million of noninterest-bearing deposits acquired from Bank of Atlanta. Period-end noninterest-bearing demand deposits represented 24.1% of total deposits as of December 31, 2014. Average noninterest-bearing demand deposits, which increased for the eleventh consecutive quarter, were up $33.6 million from the third quarter of 2014, excluding average noninterest-bearing deposits from Bank of Atlanta.

Tangible book value per share was $13.97 at the end of the fourth quarter of 2014. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 15.90% and a Tier I risk-based capital ratio of 23.12%.

Subsequent Event

On January 1, 2015, State Bank Financial Corporation completed its previously announced merger with Georgia-Carolina Bancshares, Inc., the holding company for First Bank of Georgia. At December 31, 2014, First Bank of Georgia had approximately $517 million of total assets, $334 million of loans, $417 million of deposits and seven banking offices in the Augusta, Georgia market.

Detailed Results

Supplemental tables displaying financial results for the fourth quarter of 2014, the previous four quarters and full year 2014 are included with this press release.

Conference Call

State Bank Chief Executive Officer Joe Evans, Chief Financial Officer Sheila Ray and Executive Risk Officer Kim Childers will discuss financial and business results for the quarter and the year on a conference call today at 10:00 a.m. EST. The dial in number is 1.800.684.5780. Please allow time to register your name and affiliation/company prior to the start of 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

State Bank Financial Corporation (NASDAQ: STBZ) is an Atlanta-based bank holding company for State Bank and Trust Company and First Bank of Georgia. State Bank operates 21 banking offices in Metro Atlanta and Middle Georgia. First Bank of Georgia operates seven banking offices and four mortgage origination offices in the Augusta and Savannah, Georgia MSAs.

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. Forward-looking statements can be identified by words such as: “intend,” “plan,” “seek,” “believe,” “expect,” “strategy,” “future,” “likely,” “project,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements related to our momentum and pipeline going into 2015, our future plans, expectations and benefits of our strategic plan, including projections and expectations of future growth, the impact of the expiration of our loss share agreements and the expected personnel cost savings related to staff reductions and the conversion of Bank of Atlanta. 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 acquisitions, 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 most recently ended fiscal year, for a description of some of the important factors that may affect actual outcomes.



State Bank Financial Corporation
4Q14 Financial Supplement: Table 1
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
																4Q14 change vs
(Dollars in thousands, except per share amounts)	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14			4Q13

Income Statement Highlights
Interest income on invested funds	$	2,928		$	2,545		$	2,522		$	2,493		$	2,416		$	383		$	512
Interest income on loans	17,416			16,162			15,350			15,248			15,826			1,254			1,590
Accretion income on loans	14,124			21,110			17,087			26,536			48,065			(6,986		)	(33,941		)
Interest expense	1,923			1,857			1,846			1,894			1,961			66			(38		)
Net interest income	32,545			37,960			33,113			42,383			64,346			(5,415		)	(31,801		)
Provision for (recovery of) loan losses	1,189			416			701			590			(98		)	773			1,287
Accretion (amortization) of FDIC receivable for loss share agreements	1,652			(196		)	(1,949		)	(15,292		)	(31,372		)	1,848			33,024
Other noninterest income	5,285			3,624			3,348			3,130			3,990			1,661			1,295
Noninterest expense	25,799			22,510			22,076			23,083			22,718			3,289			3,081
Income before income taxes	12,494			18,462			11,735			6,548			14,344			(5,968		)	(1,850		)
Income tax expense	4,909			6,958			4,228			2,226			4,927			(2,049		)	(18		)
Net income	$	7,585		$	11,504		$	7,507		$	4,322		$	9,417		$	(3,919	)	$	(1,832	)

Common Share Data
Basic net income per share	$	.24		$	.36		$	.23		$	.13		$	.29		$	(.12	)	$	(.05	)
Diluted net income per share	.22			.34			.22			.13			.28			(.12		)	(.06		)
Cash dividends declared per share	.04			.04			.04			.03			.03			—			.01
Book value per share	14.38			14.20			13.95			13.74			13.62			.18			.76
Tangible book value per share	13.97			13.83			13.58			13.36			13.24			.14			.73
Market price per share	19.98			16.24			16.91			17.69			18.19			3.74			1.79

Average Balance Sheet Highlights
Loans, excluding purchased credit impaired	$	1,430,495		$	1,246,008		$	1,192,494		$	1,133,802		$	1,144,116		$	184,487		$	286,379
Purchased credit impaired loans	214,518			215,318			236,178			250,824			258,600			(800		)	(44,082		)
Assets	2,858,209			2,609,776			2,591,025			2,579,904			2,564,205			248,433			294,004
Deposits	2,339,566			2,125,659			2,108,595			2,088,787			2,089,202			213,907			250,364
Equity	461,137			448,982			444,175			439,105			429,494			12,155			31,643
Tangible common equity	447,641			437,038			432,073			426,828			417,030			10,603			30,611

Key Metrics
Return on average assets (1)	1.05		%	1.75		%	1.16		%	.68		%	1.46		%	(.70		)%	(.41		)%
Return on average equity (1)	6.53			10.17			6.78			3.99			8.70			(3.64		)	(2.17		)
Yield on earning assets (2)	5.08			6.44			5.86			7.71			11.60			(1.36		)	(6.52		)
Cost of funds (2)	.33			.35			.35			.37			.37			(.02		)	(.04		)
Rate on interest-bearing liabilities	.43			.45			.45			.46			.47			(.45		)	(.47		)
Net interest margin (2)	4.80			6.14			5.55			7.38			11.26			(1.34		)	(6.46		)
Average equity to average assets	16.13			17.20			17.14			17.02			16.75			(1.07		)	(.62		)
Leverage ratio	15.90			17.16			16.84			16.67			16.55			(1.26		)	(.65		)
Tier I risk-based capital ratio	23.12			25.17			27.06			27.20			27.85			(2.05		)	(4.73		)
Efficiency ratio (2)	65.20			54.28			63.82			76.19			61.28			10.92			3.92
Average loans to average deposits	70.31			68.75			67.75			66.29			67.14			1.56			3.17
Noninterest-bearing deposits to total deposits	24.14			24.33			21.82			22.02			22.00			(.19		)	2.14

(1) Net income annualized for the applicable period.

(2) Interest income annualized for the applicable period and calculated on a fully tax-equivalent basis.



State Bank Financial Corporation
4Q14 Financial Supplement: Table 2
Condensed Consolidated Balance Sheets
Quarterly (Unaudited)
																4Q14 change vs
(Dollars in thousands)	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14			4Q13

Assets
Cash and amounts due from depository institutions	$	10,550		$	17,209		$	8,333		$	7,314		$	8,518		$	(6,659	)	$	2,032
Interest-bearing deposits in other financial institutions	470,608			459,271			499,400			549,593			590,231			11,337			(119,623		)
Cash and cash equivalents	481,158			476,480			507,733			556,907			598,749			4,678			(117,591		)
Investment securities available-for-sale	640,086			532,447			494,874			454,053			387,048			107,639			253,038
Loans receivable (1)	1,634,529			1,504,725			1,441,606			1,413,192			1,380,969			129,804			253,560
Allowance for loan losses (2)	(28,638		)	(27,231		)	(35,607		)	(36,040		)	(34,065		)	(1,407		)	5,427
Net loans	1,605,891			1,477,494			1,405,999			1,377,152			1,346,904			128,397			258,987
Mortgage loans held for sale	3,174			1,283			726			1,552			897			1,891			2,277
Other real estate owned (3)	8,568			15,169			23,938			38,437			47,187			(6,601		)	(38,619		)
Premises and equipment, net	35,286			34,696			34,820			34,592			33,318			590			1,968
Goodwill	10,606			10,381			10,381			10,381			10,381			225			225
Other intangibles, net	2,752			1,511			1,663			1,824			1,986			1,241			766
SBA servicing rights	1,516			—			—			—			—			1,516			1,516
FDIC receivable for loss share agreements, net	22,320			26,221			44,775			70,361			107,843			(3,901		)	(85,523		)
Bank owned life insurance	41,479			41,136			40,803			40,474			40,145			343			1,334
Other assets	29,374			30,779			20,093			36,758			30,930			(1,405		)	(1,556		)
Total assets	$	2,882,210		$	2,647,597		$	2,585,805		$	2,622,491		$	2,605,388		$	234,613		$	276,822
Liabilities and Shareholders’ Equity
Noninterest-bearing deposits	$	577,295		$	524,634		$	461,434		$	471,414		$	468,138		$	52,661		$	109,157
Interest-bearing deposits	1,814,387			1,631,340			1,653,779			1,669,647			1,660,187			183,047			154,200
Total deposits	2,391,682			2,155,974			2,115,213			2,141,061			2,128,325			235,708			263,357
Securities sold under agreements to repurchase	—			—			—			—			1,216			—			(1,216		)
Notes payable	2,771			2,776			2,779			4,371			5,682			(5		)	(2,911		)
Other liabilities	23,662			30,570			19,506			35,620			32,982			(6,908		)	(9,320		)
Total liabilities	2,418,115			2,189,320			2,137,498			2,181,052			2,168,205			228,795			249,910
Total shareholders’ equity	464,095			458,277			448,307			441,439			437,183			5,818			26,912
Total liabilities and shareholders’ equity	$	2,882,210		$	2,647,597		$	2,585,805		$	2,622,491		$	2,605,388		$	234,613		$	276,822

Capital Ratios
Average equity to average assets	16.13		%	17.20		%	17.14		%	17.02		%	16.75		%	(1.07		)%	(.62		)%
Leverage ratio	15.90			17.16			16.84			16.67			16.55			(1.26		)	(.65		)
Tier I risk-based capital ratio	23.12			25.17			27.06			27.20			27.85			(2.05		)	(4.73		)
Total risk-based capital ratio	24.37			26.42			28.32			28.47			29.11			(2.05		)	(4.74		)

Shares Issued and Outstanding
Common stock	32,269,604			32,271,466			32,130,645			32,123,645			32,094,145			(1,862		)	175,459

(1) Loans covered by loss share agreements with the FDIC were approximately $99.5 million at 4Q14, $114.2 million at 3Q14, $211.3 million at 2Q14, $246.3 million at 1Q14 and $257.5 million at 4Q13.

(2) Allowance for loan losses on purchased credit impaired loans was approximately $10.2 million at 4Q14, $8.4 million at 3Q14, $17.7 million at 2Q14, $19.2 million at 1Q14 and $17.4 million at 4Q13.

(3) Other real estate owned covered by loss share agreements with the FDIC was approximately $3.3 million at 4Q14, $11.2 million at 3Q14, $23.2 million at 2Q14, $37.5 million at 1Q14 and $46.2 million at 4Q13.



State Bank Financial Corporation
4Q14 Financial Supplement: Table 3
Condensed Consolidated Income Statements
Quarterly (Unaudited)
																4Q14 change vs
(Dollars in thousands, except per share amounts)	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14			4Q13

Net Interest Income:
Interest income on invested funds	$	2,928		$	2,545		$	2,522		$	2,493		$	2,416		$	383		$	512
Interest income on loans	17,416			16,162			15,350			15,248			15,826			1,254			1,590
Accretion income on loans	14,124			21,110			17,087			26,536			48,065			(6,986		)	(33,941		)
Interest expense	1,923			1,857			1,846			1,894			1,961			66			(38		)
Net interest income	32,545			37,960			33,113			42,383			64,346			(5,415		)	(31,801		)
Provision for (recovery of) loan losses	1,189			416			701			590			(98		)	773			1,287
Net interest income after provision for (recovery of) loan losses	31,356			37,544			32,412			41,793			64,444			(6,188		)	(33,088		)
Noninterest Income:
Accretion (amortization) of FDIC receivable for loss share agreements	1,652			(196		)	(1,949		)	(15,292		)	(31,372		)	1,848			33,024
Service charges on deposits	1,274			1,206			1,196			1,158			1,304			68			(30		)
Mortgage banking income	322			191			163			159			153			131			169
Gain on sale of investment securities	223			—			12			11			—			223			223
Payroll fee income	1,050			875			822			953			879			175			171
ATM income	624			621			636			590			604			3			20
Bank-owned life insurance income	343			333			329			329			333			10			10
SBA income	392			27			31			27			35			365			357
Other	1,057			371			159			(97		)	682			686			375
Total noninterest income	6,937			3,428			1,399			(12,162		)	(27,382		)	3,509			34,319
Noninterest Expense:
Salaries and employee benefits	17,797			14,644			14,575			15,077			14,500			3,153			3,297
Occupancy and equipment	2,615			2,440			2,314			2,529			2,330			175			285
Data processing	1,909			1,758			1,714			1,672			1,595			151			314
Legal and professional fees	844			851			731			1,014			1,154			(7		)	(310		)
Marketing	491			453			548			332			369			38			122
Federal deposit insurance premiums and other regulatory fees	393			356			337			334			303			37			90
Loan collection and OREO costs	(112		)	—			(32		)	624			733			(112		)	(845		)
Amortization of intangibles	257			152			161			162			164			105			93
Other	1,605			1,856			1,728			1,339			1,570			(251		)	35
Total noninterest expense	25,799			22,510			22,076			23,083			22,718			3,289			3,081
Income Before Income Taxes	12,494			18,462			11,735			6,548			14,344			(5,968		)	(1,850		)
Income tax expense	4,909			6,958			4,228			2,226			4,927			(2,049		)	(18		)
Net Income	$	7,585		$	11,504		$	7,507		$	4,322		$	9,417		$	(3,919	)	$	(1,832	)

Net Income Per Share
Basic	$	.24		$	.36		$	.23		$	.13		$	.29		$	(.12	)	$	(.05	)
Diluted	.22			.34			.22			.13			.28			(.12		)	(.06		)
Weighted Average Shares Outstanding
Basic	32,271,537			32,206,889			32,126,260			32,094,473			32,086,781			64,648			184,756
Diluted	33,935,366			33,755,595			33,589,797			33,644,135			33,519,550			179,771			415,816



State Bank Financial Corporation
4Q14 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)	2014			2013			YTD Change

Net Interest Income:
Interest income on invested funds	$	10,488		$	10,198		$	290
Interest income on loans	64,176			61,010			3,166
Accretion income on loans	78,857			122,466			(43,609		)
Interest expense	7,520			7,933			(413		)
Net interest income	146,001			185,741			(39,740		)
Provision for (recovery of) loan losses	2,896			(2,487		)	5,383
Net interest income after provision for (recovery of) loan losses	143,105			188,228			(45,123		)
Noninterest Income:
Amortization of FDIC receivable for loss share agreements	(15,785		)	(87,884		)	72,099
Service charges on deposits	4,834			5,156			(322		)
Mortgage banking income	835			1,008			(173		)
Gain on sale of investment securities	246			1,081			(835		)
Payroll fee income	3,700			3,143			557
ATM income	2,471			2,448			23
Bank-owned life insurance income	1,334			1,354			(20		)
SBA income	477			166			311
Other	1,490			2,581			(1,091		)
Total noninterest income	(398		)	(70,947		)	70,549
Noninterest Expense:
Salaries and employee benefits	62,093			62,236			(143		)
Occupancy and equipment	9,898			9,767			131
Data processing	7,053			6,087			966
Legal and professional fees	3,440			4,989			(1,549		)
Marketing	1,824			1,504			320
Federal insurance premiums and other regulatory fees	1,420			2,315			(895		)
Loan collection and OREO costs	480			4,339			(3,859		)
Amortization of intangibles	732			1,202			(470		)
Other	6,528			5,528			1,000
Total noninterest expense	93,468			97,967			(4,499		)
Income Before Income Taxes	49,239			19,314			29,925
Income tax expense	18,321			6,567			11,754
Net Income	$	30,918		$	12,747		$	18,171

Net Income Per Share
Basic	$	.96		$	.40		$	.56
Diluted	.92			.38			.54
Weighted Average Shares Outstanding
Basic	32,175,363			31,978,844			196,519
Diluted	33,736,352			33,290,565			445,787



State Bank Financial Corporation
4Q14 Financial Supplement: Table 5
Condensed Consolidated Composition of Loans and Deposits at Period Ends
Quarterly (Unaudited)
											4Q14 change vs
(Dollars in thousands)	4Q14		3Q14		2Q14		1Q14		4Q13		3Q14			4Q13

Composition of Loans
Organic loans:
Construction, land & land development	$	310,987	$	324,008	$	271,525	$	259,488	$	251,043	$	(13,021	)	$	59,944
Other commercial real estate	609,478		591,672		616,418		593,260		550,474		17,806			59,004
Total commercial real estate	920,465		915,680		887,943		852,748		801,517		4,785			118,948
Residential real estate	91,448		80,231		75,683		67,896		66,835		11,217			24,613
Owner-occupied real estate	188,933		164,514		167,129		171,221		174,858		24,419			14,075
Commercial, financial & agricultural	90,930		102,417		91,552		66,728		71,006		(11,487		)	19,924
Lease financing	19,959		19,636		—		—		—		323			19,959
Consumer	8,658		9,445		7,997		8,320		9,259		(787		)	(601		)
Total organic loans	1,320,393		1,291,923		1,230,304		1,166,913		1,123,475		28,470			196,918
Purchased non-credit impaired loans(1):
Construction, land & land development	2,166		—		—		—		—		2,166			2,166
Other commercial real estate	26,793		—		—		—		—		26,793			26,793
Total commercial real estate	28,959		—		—		—		—		28,959			28,959
Residential real estate	43,669		—		—		—		—		43,669			43,669
Owner-occupied real estate	22,743		—		—		—		—		22,743			22,743
Commercial, financial & agricultural	11,635		—		—		—		—		11,635			11,635
Consumer	791		—		—		—		—		791			791
Total purchased non-credit impaired loans	107,797		—		—		—		—		107,797			107,797
Purchased credit impaired loans:
Construction, land & land development	24,544		25,463		23,851		30,770		35,383		(919		)	(10,839		)
Other commercial real estate	58,680		54,573		54,212		65,599		67,573		4,107			(8,893		)
Total commercial real estate	83,224		80,036		78,063		96,369		102,956		3,188			(19,732		)
Residential real estate	78,793		80,859		86,371		92,509		95,240		(2,066		)	(16,447		)
Owner-occupied real estate	42,168		48,834		43,409		52,791		54,436		(6,666		)	(12,268		)
Commercial, financial & agricultural	1,953		2,790		3,081		4,228		4,289		(837		)	(2,336		)
Consumer	201		283		378		382		573		(82		)	(372		)
Total purchased credit impaired loans	206,339		212,802		211,302		246,279		257,494		(6,463		)	(51,155		)
Total loans	$	1,634,529	$	1,504,725	$	1,441,606	$	1,413,192	$	1,380,969	$	129,804		$	253,560
Composition of Deposits
Noninterest-bearing demand deposits	$	577,295	$	524,634	$	461,434	$	471,414	$	468,138	$	52,661		$	109,157
Interest-bearing transaction accounts	495,966		377,220		387,855		382,697		367,983		118,746			127,983
Savings and money market deposits	954,626		910,488		898,833		903,198		892,136		44,138			62,490
Time deposits less than $100,000	147,462		147,420		155,918		162,002		168,611		42			(21,149		)
Time deposits $100,000 or greater	119,241		107,143		112,705		116,858		124,827		12,098			(5,586		)
Brokered and wholesale time deposits	97,092		89,069		98,468		104,892		106,630		8,023			(9,538		)
Total deposits	$	2,391,682	$	2,155,974	$	2,115,213	$	2,141,061	$	2,128,325	$	235,708		$	263,357

(1) Consists of loans purchased in Bank of Atlanta acquisition.



State Bank Financial Corporation
4Q14 Financial Supplement: Table 6
Condensed Consolidated Organic Asset Quality Data
Quarterly (Unaudited)
																4Q14 change vs
(Dollars in thousands)	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14			4Q13

Nonperforming assets:
Nonaccrual loans	$	1,245		$	740		$	1,063		$	1,265		$	1,396		$	505		$	(151	)
Troubled debt restructurings	4,301			875			875			866			869			3,426			3,432
Total nonperforming organic loans	5,546			1,615			1,938			2,131			2,265			3,931			3,281
Other real estate owned	74			410			729			901			965			(336		)	(891		)
Total nonperforming organic assets	$	5,620		$	2,025		$	2,667		$	3,032		$	3,230		$	3,595		$	2,390

Allowance for loan losses on loans:
Charge-offs	$	1,250		$	87		$	79		$	136		$	67		$	1,163		$	1,183
Recoveries	39			30			106			338			296			9			(257		)
Net charge-offs (recoveries)	$	1,211		$	57		$	(27	)	$	(202	)	$	(229	)	$	1,154		$	1,440

Ratios:
Annualized QTD charge-offs (recoveries) to total average loans	.36		%	.02		%	(.01		)%	(.07		)%	(.08		)%	.34		%	.44		%
Nonperforming loans to total loans	.42			.13			.16			.18			.20			.29			.22
Nonperforming assets to loans + ORE	.43			.16			.22			.26			.29			.27			.14
Past due loans to total loans	.17			.10			.13			.14			.09			.07			.08
Allowance for loan losses to loans	1.39			1.46			1.45			1.44			1.48			(.07		)	(.09		)



State Bank Financial Corporation
4Q14 Financial Supplement: Table 7
Condensed Consolidated Average Balances and Yield Analysis
Quarterly (Unaudited)
																4Q14 change vs
(Dollars in thousands)	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14			4Q13
Selected Average Balances
Interest-bearing deposits in other financial institutions	$	450,362		$	476,190		$	490,009		$	518,362		$	489,046		$	(25,828	)	$	(38,684	)
Investment securities	603,101			523,488			481,240			430,696			379,975			79,613			223,126
Loans, excluding purchased credit impaired(1)	1,430,495			1,246,008			1,192,494			1,133,802			1,144,116			184,487			286,379
Purchased credit impaired loans	214,518			215,318			236,178			250,824			258,600			(215,318		)	(258,600		)
Total earning assets	2,698,476			2,461,004			2,399,921			2,333,684			2,271,737			237,472			426,739
Total nonearning assets	159,733			148,772			191,104			246,220			292,468			10,961			(132,735		)
Total assets	2,858,209			2,609,776			2,591,025			2,579,904			2,564,205			248,433			294,004
Interest-bearing transaction accounts	433,545			376,052			376,143			357,988			338,502			57,493			95,043
Savings & money market deposits	958,782			896,503			892,168			894,994			909,999			62,279			48,783
Time deposits less than $100,000	152,102			151,358			159,296			165,158			173,061			744			(20,959		)
Time deposits $100,000 or greater	154,416			109,472			114,652			122,217			129,384			44,944			25,032
Brokered and wholesale time deposits	86,371			96,743			100,395			106,555			106,676			(10,372		)	(20,305		)
Notes payable	2,775			2,778			3,365			5,212			5,686			(3		)	(2,911		)
FHLB Advances	326			—			—			—			—			326			326
Securities sold under agreements to repurchase	4,284			—			—			727			675			4,284			3,609
Total interest-bearing liabilities	1,792,601			1,632,906			1,646,019			1,652,851			1,663,983			159,695			128,618
Noninterest-bearing deposits	554,350			495,531			465,941			441,875			431,580			58,819			122,770
Other liabilities	50,121			32,357			34,890			46,073			39,148			17,764			10,973
Shareholders’ equity	461,137			448,982			444,175			439,105			429,494			12,155			31,643
Total liabilities and shareholders' equity	2,858,209			2,609,776			2,591,025			2,579,904			2,564,205			248,433			294,004

Interest Margins (2)
Interest-bearing deposits in other financial institutions	.26		%	.26		%	.26		%	.27		%	.27		%	—		%	(.01		)%
Investment securities, tax-equivalent basis(3)	1.73			1.70			1.84			2.03			2.19			.03			(.46		)
Loans, excluding purchased credit impaired, tax-equivalent basis (4)	4.85			5.17			5.19			5.48			5.52			(.32		)	(.67		)
Purchased credit impaired loans	26.12			38.90			29.02			42.91			73.74			(38.90		)	(73.74		)
Total earning assets	5.08		%	6.44		%	5.86		%	7.71		%	11.60		%	(1.36		)%	(6.52		)%
Interest-bearing transaction accounts	.13			.13			.12			.12			.11			(.13		)	(.11		)
Savings & money market deposits	.46			.46			.45			.44			.43			(.46		)	(.43		)
Time deposits less than $100,000	.50			.51			.53			.54			.55			(.51		)	(.55		)
Time deposits $100,000 or greater	.49			.63			.66			.69			.67			(.63		)	(.67		)
Brokered and wholesale time deposits	1.02			1.08			.95			.93			.93			(1.08		)	(.93		)
Notes payable	9.01			9.00			10.37			11.52			11.44			(9.00		)	(11.44		)
FHLB Advances	1.22			—			—			—			—			1.22			1.22
Securities sold under agreements to repurchase	.09			—			—			—			—			—			—
Total interest-bearing liabilities	.43			.45			.45			.46			.47			(.45		)	(.47		)
Net interest spread	4.65			5.99			5.41			7.25			11.13			(5.99		)	(11.13		)
Net interest margin	4.80		%	6.14		%	5.55		%	7.38		%	11.26		%	(1.34		)%	(6.46		)%

(1) Includes average nonaccrual loans of $5.6 million for 4Q14, $1.7 million for 3Q14, $2.0 million for 2Q14, $2.1 million for 1Q14, and $2.6 million for 4Q13.

(2) Interest income or expense annualized for the applicable period.

(3) Reflects taxable equivalent adjustments using the federal 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 $4,000 for 4Q14, $7,000 for 3Q14, $11,000 for 2Q14, $11,000 for 1Q14, and $11,000 for 4Q13.

(4) Reflects taxable equivalent adjustments using the federal 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 $80,000 for 4Q14, $75,000 for 3Q14, $66,000 for 2Q14, $65,000 for 1Q14, and $97,000 for 4Q13.

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