Attached files
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| 8-K - 8-K - STATE BANK FINANCIAL CORP | a8kcoverpage063015.htm |
| EX-99.2 - EXHIBIT 99.2 - STATE BANK FINANCIAL CORP | a2q15earningspresentatio.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 Second Quarter 2015 Financial Results
▪ | Recorded a one-time after-tax charge of $8.9 million related to early termination of loss share agreements with the FDIC, resulting in a net loss of $2.0 million during the second quarter |
▪ | Second quarter 2015 operating income of $7.7 million, or $.20 per diluted share |
▪ | Solid growth in noninterest income key initiatives |
▪ | $42 million of net loan growth, including run-off from purchased loans |
ATLANTA, GA, July 23, 2015 - State Bank Financial Corporation (NASDAQ: STBZ) today announced unaudited financial results for the quarter ended June 30, 2015. After incorporating our previously disclosed one-time pre-tax charge of $14.5 million that resulted from the early termination of our loss share agreements, net loss for the second quarter of 2015 was $2.0 million, compared to net income of $7.5 million for the second quarter of 2014 and net income of $9.2 million for the first quarter of 2015. Fully diluted loss per share was $.06 in the second quarter of 2015 compared to fully diluted earnings per share of $.22 in the second quarter of 2014 and fully diluted earnings per share of $.25 in the first quarter of 2015. On an operating basis, income for the second quarter of 2015 was $7.7 million, or $.20 per fully diluted share.
Joe Evans, Chairman and CEO, commented, "The big event of the second quarter was the early termination of our FDIC loss share agreements with a related one-time charge that led to negative earnings. I am extremely pleased to have accomplished early termination and remain highly confident that the financial benefits will allow us to recover this charge within five quarters as we previously announced. We continue to experience strong organic loan and noninterest-bearing deposit growth and reap the benefits of our focus on key noninterest income initiatives. These fundamentals produced another quarter of solid operating results with strong momentum carrying over into the second half of the year."
Operating Highlights
Net interest income of $33.5 million in the second quarter of 2015 decreased from $39.1 million in the first quarter of 2015 due to lower accretion income on loans, but increased from $33.1 million in the second quarter of 2014. Interest income on loans, excluding purchased credit impaired loans, for the second quarter of 2015 was $23.1 million, up $1.7 million from $21.4 million in the prior quarter and up $7.8 million from $15.4 million in the second quarter of 2014. Accretion income on loans was $8.4 million in the second quarter of 2015, down from $16.1 million in the first quarter of 2015 due primarily to larger gains from early loan payoffs in the previous quarter as well as a loan pool that closed out in the first quarter of 2015. Base accretion declined $1.3 million in the second quarter of 2015 compared to the
prior quarter. As of June 30, 2015, approximately $104 million of accretable discount remains to be recognized as loan accretion income, compared to $110 million of accretable discount remaining at the end of the first quarter of 2015. Interest expense of $2.0 million in the second quarter of 2015 was essentially flat compared to the prior quarter. Cost of funds for the second quarter of 2015 was 29 basis points, unchanged from the first quarter of 2015 and down six basis points from the second quarter of 2014.
The organic loan portfolio continued to perform well in the second quarter of 2015 as past due organic loans represented only .08% of total organic loans. The provision for loan losses was $64 thousand in the second quarter of 2015, a decrease of $3.1 million compared to the first quarter of 2015, of which $2.3 million was related to purchased credit impaired loans.
Noninterest income, excluding (amortization)/accretion of the FDIC receivable for loss share agreements, was $9.3 million for the second quarter of 2015, compared to $10.3 million in the first quarter of 2015. The first quarter of 2015 included $380 thousand in securities gains and $2.0 million in prepayment fees. In the second quarter of 2015, we continued to experience solid growth in our noninterest income key initiatives as income from mortgage banking of $3.5 million and SBA lending of $1.4 million were up $800 thousand and $257 thousand, respectively, from the previous quarter. Payroll fee income of $956 thousand increased versus the prior year period, but was down from the previous quarter due to what is typically a seasonally strong first quarter.
On May 21, 2015, State Bank entered into an agreement with the FDIC to terminate the loss share agreements on all 12 FDIC-assisted acquisitions that occurred in 2009, 2010 and 2011, resulting in a pre-tax charge of approximately $14.5 million for the second quarter of 2015. Approximately $9.3 million of the one-time pre-tax charge was related to amortization scheduled to be recognized during future quarters, with the remainder primarily consisting of the payment made to the FDIC to eliminate all rights and obligations between State Bank and the FDIC, most significantly the elimination of the FDIC's right to share in the recovery of losses previously recognized under loss share. State Bank will now retain 100% of future recoveries instead of retaining either 5% or 20% of future recoveries as provided in the now terminated loss share agreements.
Total noninterest expense for the second quarter of 2015 was $31.4 million, a $1.3 million increase from
the first quarter of 2015, due primarily to higher merger-related expenses and salary and benefit costs largely as a result of severance related to the early termination of loss share. Merger-related expenses totaled $876 thousand in the second quarter of 2015, up from $137 thousand in the first quarter of 2015. Severance expenses totaled $443 thousand in the second quarter of 2015, compared to $365 thousand in the first quarter of 2015.
Financial Condition
Total assets at June 30, 2015 were $3.3 billion, down from $3.4 billion at March 31, 2015 but up from $2.6 billion at June 30, 2014. Period-end organic loans increased to $1.5 billion at June 30, 2015, a net increase of $90.8 million from the first quarter of 2015 and $294.0 million from the second quarter of 2014. Approximately $10.5 million of the growth in organic loans was related to loan renewals of purchased non-credit impaired loans that migrated into organic loans. Purchased non-credit impaired loans decreased $35.3 million from the first quarter of 2015 to $340.5 million, and purchased credit impaired loans decreased to $177.4 million at the end of the second quarter of 2015, a $13.5 million linked-quarter decline. Total net loans, excluding loans held for sale, were $2.0 billion at June 30, 2015, up $42.4 million from the first quarter of 2015.
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Total deposits at June 30, 2015 were $2.7 billion, down from $2.8 billion at the end of the first quarter of 2015 but up from $2.1 billion at the end of the second quarter of 2014. Period-end noninterest-bearing demand deposits increased $70.2 million from the first quarter of 2015 and represented 27.9% of total deposits as of June 30, 2015. Average noninterest-bearing demand deposits increased $90.6 million from the first quarter of 2015. Average transaction accounts, comprised of noninterest-bearing demand deposits and interest-bearing transaction accounts, increased $105.7 million from the first quarter of 2015.
Tangible book value per share was $13.51 at the end of the second quarter of 2015. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 14.78% and a Tier I risk-based capital ratio of 18.83%.
Branch Closures
As part of our ongoing strategy to deploy personnel and resources more efficiently, State Bank consolidated three branch offices in Middle Georgia in the second quarter of 2015. After completing the First Bank of Georgia conversion, which is scheduled for the weekend of July 25-26, 2015, State Bank will operate 26 banking offices in three primary markets: Metro Atlanta (7), Middle Georgia (12), and Augusta (7), as well as five mortgage origination offices in the Atlanta, Augusta and Savannah, Georgia markets.
Detailed Results
Supplemental tables displaying financial results for the second quarter of 2015, the previous four quarters and the first half of 2015 are included with this press release.
Non-GAAP Financial Measures
This press release contains certain performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). For more information on this topic, please refer to 2Q15 Financial Supplement: Table 2, Condensed Operating Results to GAAP Earnings Reconciliation, on page 7.
Conference Call
Chief Executive Officer Joe Evans, President Tom Wiley, Chief Financial Officer Sheila Ray and Chief Credit Officer David Black will discuss financial and business results for the quarter on a conference call today at 11:00 a.m. ET.
Dial in number: 1.800.743.9807
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.
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About State Bank Financial Corporation
State Bank Financial Corporation (NASDAQ: STBZ), with approximately $3.3 billion in assets at June 30, 2015, is an Atlanta-based bank holding company for State Bank and Trust Company and First Bank of Georgia. As of June 30, 2015, State Bank operated 19 banking offices in Metro Atlanta and Middle Georgia and one mortgage origination office in metro Atlanta. First Bank of Georgia operated 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 on our conference call may be "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, the expected future financial benefits of our early termination of loss share coverage and our operating momentum carrying into the second half of 2015. 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.
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State Bank Financial Corporation | ||||||||||||||||||||||||||||
2Q15 Financial Supplement: Table 1 | ||||||||||||||||||||||||||||
Condensed Consolidated Financial Summary Results | ||||||||||||||||||||||||||||
Quarterly (Unaudited) | ||||||||||||||||||||||||||||
2Q15 change vs | ||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts; taxable equivalent) | 2Q15 | 1Q15 | 4Q14 | 3Q14 | 2Q14 | 1Q15 | 2Q14 | |||||||||||||||||||||
Income Statement Highlights | ||||||||||||||||||||||||||||
Interest income on loans | $ | 23,174 | $ | 21,498 | $ | 17,496 | $ | 16,237 | $ | 15,416 | 1,676 | 7,758 | ||||||||||||||||
Accretion income on loans | 8,365 | 16,069 | 14,124 | 21,110 | 17,087 | (7,704 | ) | (8,722 | ) | |||||||||||||||||||
Interest income on invested funds | 4,037 | 3,629 | 2,932 | 2,552 | 2,533 | 408 | 1,504 | |||||||||||||||||||||
Total interest income | 35,576 | 41,196 | 34,552 | 39,899 | 35,036 | (5,620 | ) | 540 | ||||||||||||||||||||
Interest expense | 1,972 | 1,979 | 1,923 | 1,857 | 1,846 | (7 | ) | 126 | ||||||||||||||||||||
Net interest income | 33,604 | 39,217 | 32,629 | 38,042 | 33,190 | (5,613 | ) | 414 | ||||||||||||||||||||
Provision for loan losses | 64 | 3,193 | 1,189 | 416 | 701 | (3,129 | ) | (637 | ) | |||||||||||||||||||
(Amortization) accretion of FDIC receivable for loss share agreements (2) | (492 | ) | (1,448 | ) | 1,652 | (196 | ) | (1,949 | ) | 956 | 1,457 | |||||||||||||||||
Noninterest income | 9,328 | 10,257 | 5,285 | 3,624 | 3,348 | (929 | ) | 5,980 | ||||||||||||||||||||
Total operating noninterest income (2) | 8,836 | 8,809 | 6,937 | 3,428 | 1,399 | 27 | 7,437 | |||||||||||||||||||||
Operating noninterest expense (3) | 30,047 | 29,592 | 23,999 | 22,207 | 21,794 | 455 | 8,253 | |||||||||||||||||||||
Operating income before taxes (2)(3) | 12,329 | 15,241 | 14,378 | 18,847 | 12,094 | (2,912 | ) | 235 | ||||||||||||||||||||
Operating income tax expense (2)(3) | 4,618 | 5,729 | 5,689 | 7,157 | 4,415 | (1,111 | ) | 203 | ||||||||||||||||||||
Operating income (2)(3) | 7,711 | 9,512 | 8,689 | 11,690 | 7,679 | (1,801 | ) | 32 | ||||||||||||||||||||
Loss share expense termination, net of tax benefit | (8,923 | ) | — | — | — | — | (8,923 | ) | (8,923 | ) | ||||||||||||||||||
Severance costs, net of tax benefit | (272 | ) | (224 | ) | (916 | ) | (49 | ) | (10 | ) | (48 | ) | (262 | ) | ||||||||||||||
Merger-related expenses, net of tax benefit | (537 | ) | (84 | ) | (188 | ) | (137 | ) | (162 | ) | (453 | ) | (84 | ) | ||||||||||||||
Net income (loss) available to common shareholders | $ | (2,021 | ) | $ | 9,204 | $ | 7,585 | $ | 11,504 | $ | 7,507 | $ | (11,225 | ) | $ | (9,528 | ) | |||||||||||
Common Share Data | ||||||||||||||||||||||||||||
Basic net income (loss) per share | $ | (.06 | ) | $ | .27 | $ | .24 | $ | .36 | $ | .23 | $ | (.33 | ) | $ | (.29 | ) | |||||||||||
Diluted net income (loss) per share (4) | (.06 | ) | .25 | .22 | .34 | .22 | (.31 | ) | (.28 | ) | ||||||||||||||||||
Cash dividends declared per share | .06 | .05 | .04 | .04 | .04 | .01 | .02 | |||||||||||||||||||||
Book value per share | 14.62 | 14.81 | 14.38 | 14.20 | 13.95 | (.19 | ) | .67 | ||||||||||||||||||||
Tangible book value per share | 13.51 | 13.70 | 13.97 | 13.83 | 13.58 | (.19 | ) | (.07 | ) | |||||||||||||||||||
Market price per share (quarter end) | u | 21.70 | 21.00 | 19.98 | 16.24 | 16.91 | .70 | 4.79 | ||||||||||||||||||||
Common Shares Outstanding | ||||||||||||||||||||||||||||
Common stock | 35,763,791 | 35,738,850 | 32,269,604 | 32,271,466 | 32,130,645 | 24,941 | 3,633,146 | |||||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||||
Basic | 35,741,761 | 34,373,665 | 32,271,537 | 32,206,889 | 32,126,260 | 1,368,096 | 3,615,501 | |||||||||||||||||||||
Diluted (4) | 35,741,761 | 36,437,322 | 33,935,366 | 33,755,595 | 33,589,797 | (695,561 | ) | 2,151,964 | ||||||||||||||||||||
Average Balance Sheet Highlights | ||||||||||||||||||||||||||||
Loans, excluding purchased credit impaired | $ | 1,920,219 | $ | 1,791,537 | $ | 1,430,495 | $ | 1,246,008 | $ | 1,192,494 | $ | 128,682 | $ | 727,725 | ||||||||||||||
Purchased credit impaired loans | 179,579 | 194,471 | 214,518 | 215,318 | 236,178 | (14,892 | ) | (56,599 | ) | |||||||||||||||||||
Assets | 3,316,424 | 3,323,713 | 2,858,209 | 2,609,776 | 2,591,025 | (7,289 | ) | 725,399 | ||||||||||||||||||||
Deposits | 2,746,818 | 2,716,084 | 2,339,566 | 2,125,659 | 2,108,595 | 30,734 | 638,223 | |||||||||||||||||||||
Liabilities | 44,347 | 82,361 | 57,506 | 35,135 | 38,255 | (38,014 | ) | 6,092 | ||||||||||||||||||||
Equity | 525,259 | 525,268 | 461,137 | 448,982 | 444,175 | (9 | ) | 81,084 | ||||||||||||||||||||
Tangible common equity | 485,337 | 485,087 | 447,641 | 437,038 | 432,073 | 250 | 53,264 | |||||||||||||||||||||
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State Bank Financial Corporation | |||||||||||||||||||||
2Q15 Financial Supplement: Table 1 (continued) | |||||||||||||||||||||
Condensed Consolidated Financial Summary Results | |||||||||||||||||||||
Quarterly (Unaudited) | |||||||||||||||||||||
2Q15 change vs | |||||||||||||||||||||
(Dollars in thousands, except per share amounts; taxable equivalent) | 2Q15 | 1Q15 | 4Q14 | 3Q14 | 2Q14 | 1Q15 | 2Q14 | ||||||||||||||
Key Metrics | |||||||||||||||||||||
Operating return on average assets (1)(2)(3) | .93 | % | 1.16 | % | 1.21 | % | 1.78 | % | 1.19 | % | (.23 | ) | (.26 | ) | |||||||
Operating return on average equity (1)(2)(3) | 5.89 | 7.34 | 7.48 | 10.33 | 6.93 | (1.45 | ) | (1.04 | ) | ||||||||||||
Return on average assets (1) | (.24 | ) | 1.12 | 1.05 | 1.75 | 1.16 | (1.36 | ) | (1.40 | ) | |||||||||||
Return on average equity (1) | (1.54 | ) | 7.11 | 6.53 | 10.17 | 6.78 | (8.65 | ) | (8.32 | ) | |||||||||||
Yield on earning assets (1) | 4.58 | 5.37 | 5.08 | 6.44 | 5.86 | (.79 | ) | (1.28 | ) | ||||||||||||
Cost of funds | .29 | .29 | .33 | .35 | .35 | — | (.06 | ) | |||||||||||||
Rate on interest-bearing liabilities | .39 | .38 | .43 | .45 | .45 | .01 | (.06 | ) | |||||||||||||
Net interest margin (1) | 4.33 | 5.11 | 4.80 | 6.14 | 5.55 | (.78 | ) | (1.22 | ) | ||||||||||||
Average equity to average assets | 15.84 | 15.80 | 16.13 | 17.20 | 17.14 | .04 | (1.30 | ) | |||||||||||||
Leverage ratio | 14.78 | 15.00 | 15.90 | 17.16 | 16.84 | (.22 | ) | (2.06 | ) | ||||||||||||
Tier I risk-based capital ratio | 18.83 | 19.51 | 23.12 | 25.17 | 27.06 | (.68 | ) | (8.23 | ) | ||||||||||||
Total risk-based capital ratio | 19.98 | 20.70 | 24.37 | 26.42 | 28.32 | (.72 | ) | (8.34 | ) | ||||||||||||
Efficiency ratio (1) | 112.46 | 62.66 | 65.20 | 54.28 | 63.82 | 49.80 | 48.64 | ||||||||||||||
Average loans to average deposits | 76.44 | 73.12 | 70.31 | 68.75 | 67.75 | 3.32 | 8.69 | ||||||||||||||
Noninterest-bearing deposits to total deposits | 27.85 | 24.91 | 24.14 | 24.33 | 21.82 | 2.94 | 6.03 | ||||||||||||||
(1) Income annualized for the applicable period.
(2) Excludes the one-time loss share expense termination charge of $14.6 million, net of income tax benefit of $5.6 million, in the second quarter of 2015.
(3) Excludes severance costs and merger-related expenses.
(4) Since the Company had a net loss for the three month period ended June 30, 2015, all potential common shares were excluded from the calculation of diluted earnings per share as they would have had an anti-dilutive effect for the period.
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State Bank Financial Corporation | |||||||||||||||||||||||||||
2Q15 Financial Supplement: Table 2 | |||||||||||||||||||||||||||
Condensed Operating Results to GAAP Earnings Reconciliation (1) | |||||||||||||||||||||||||||
Quarterly (Unaudited) | |||||||||||||||||||||||||||
2Q15 change vs | |||||||||||||||||||||||||||
(dollars in thousands, except per share amounts; taxable equivalent) | 2Q15 | 1Q15 | 4Q14 | 3Q14 | 2Q14 | 1Q15 | 2Q14 | ||||||||||||||||||||
Interest income reconciliation | |||||||||||||||||||||||||||
Interest income - taxable equivalent | $ | 35,576 | $ | 41,196 | $ | 34,552 | $ | 39,899 | 35,036 | (5,620 | ) | 540 | |||||||||||||||
Taxable equivalent adjustment | (109 | ) | (125 | ) | (84 | ) | (82 | ) | (77 | ) | 16 | (32 | ) | ||||||||||||||
Interest income (GAAP) | $ | 35,467 | $ | 41,071 | $ | 34,468 | $ | 39,817 | $ | 34,959 | $ | (5,604 | ) | $ | 508 | ||||||||||||
Net interest income reconciliation | |||||||||||||||||||||||||||
Net interest income - taxable equivalent | $ | 33,604 | $ | 39,217 | $ | 32,629 | $ | 38,042 | 33,190 | (5,613 | ) | 414 | |||||||||||||||
Taxable equivalent adjustment | (109 | ) | (125 | ) | (84 | ) | (82 | ) | (77 | ) | 16 | (32 | ) | ||||||||||||||
Net interest income (GAAP) | $ | 33,495 | $ | 39,092 | $ | 32,545 | $ | 37,960 | $ | 33,113 | $ | (5,597 | ) | $ | 382 | ||||||||||||
(Amortization) accretion of FDIC receivable for loss share agreements | |||||||||||||||||||||||||||
(Amortization) accretion of FDIC receivable for loss share agreements | $ | (492 | ) | $ | (1,448 | ) | $ | 1,652 | $ | (196 | ) | $ | (1,949 | ) | $ | 956 | $ | 1,457 | |||||||||
Loss share termination | (14,548 | ) | — | — | — | — | (14,548 | ) | (14,548 | ) | |||||||||||||||||
(Amortization) accretion of FDIC receivable for loss share agreements (GAAP) | $ | (15,040 | ) | $ | (1,448 | ) | $ | 1,652 | $ | (196 | ) | $ | (1,949 | ) | $ | (13,592 | ) | $ | (13,091 | ) | |||||||
Total operating noninterest income reconciliation | |||||||||||||||||||||||||||
Operating noninterest income | $ | 8,836 | $ | 8,809 | $ | 6,937 | $ | 3,428 | $ | 1,399 | $ | 27 | $ | 7,437 | |||||||||||||
Loss share termination | (14,548 | ) | — | — | — | — | (14,548 | ) | (14,548 | ) | |||||||||||||||||
Total noninterest income (GAAP) | $ | (5,712 | ) | $ | 8,809 | $ | 6,937 | $ | 3,428 | $ | 1,399 | $ | (14,521 | ) | $ | (7,111 | ) | ||||||||||
Operating noninterest expense reconciliation | |||||||||||||||||||||||||||
Operating expense | $ | 30,047 | $ | 29,592 | $ | 23,999 | $ | 22,207 | $ | 21,794 | $ | 455 | $ | 8,253 | |||||||||||||
Merger-related expenses | 876 | 137 | 306 | 223 | 265 | 739 | 611 | ||||||||||||||||||||
Severance costs | 443 | 365 | 1,494 | 80 | 17 | 78 | 426 | ||||||||||||||||||||
Total noninterest expense (GAAP) | $ | 31,366 | $ | 30,094 | $ | 25,799 | $ | 22,510 | $ | 22,076 | $ | 1,272 | $ | 9,290 | |||||||||||||
Operating income before taxes reconciliation | |||||||||||||||||||||||||||
Operating income before taxes | $ | 12,329 | $ | 15,241 | $ | 14,378 | $ | 18,847 | $ | 12,094 | $ | (2,912 | ) | $ | 235 | ||||||||||||
Loss share termination | (14,548 | ) | — | — | — | — | (14,548 | ) | (14,548 | ) | |||||||||||||||||
Merger-related expenses | (876 | ) | (137 | ) | (306 | ) | (223 | ) | (265 | ) | (739 | ) | (611 | ) | |||||||||||||
Severance costs | (443 | ) | (365 | ) | (1,494 | ) | (80 | ) | (17 | ) | (78 | ) | (426 | ) | |||||||||||||
Taxable equivalent adjustment | (109 | ) | (125 | ) | (84 | ) | (82 | ) | (77 | ) | 16 | (32 | ) | ||||||||||||||
Income (loss) before taxes (GAAP) | $ | (3,647 | ) | $ | 14,614 | 12,494 | 18,462 | $ | 11,735 | $ | (18,261 | ) | $ | (15,382 | ) | ||||||||||||
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State Bank Financial Corporation | |||||||||||||||||||||||||||
2Q15 Financial Supplement: Table 2 (continued) | |||||||||||||||||||||||||||
Condensed Operating Results to GAAP Earnings Reconciliation (1) | |||||||||||||||||||||||||||
Quarterly (Unaudited) | |||||||||||||||||||||||||||
2Q15 change vs | |||||||||||||||||||||||||||
(dollars in thousands, except per share amounts; taxable equivalent) | 2Q15 | 1Q15 | 4Q14 | 3Q14 | 2Q14 | 1Q15 | 2Q14 | ||||||||||||||||||||
Income tax expense reconciliation | |||||||||||||||||||||||||||
Operating income tax expense | $ | 4,618 | 5,729 | 5,689 | 7,157 | 4,415 | (1,111 | ) | 203 | ||||||||||||||||||
Loss share termination | (5,625 | ) | — | — | — | — | (5,625 | ) | (5,625 | ) | |||||||||||||||||
Merger-related expenses | (339 | ) | (53 | ) | (118 | ) | (86 | ) | (103 | ) | (286 | ) | (236 | ) | |||||||||||||
Severance costs | (171 | ) | (141 | ) | (578 | ) | (31 | ) | (7 | ) | (30 | ) | (164 | ) | |||||||||||||
Taxable equivalent adjustment | (109 | ) | (125 | ) | (84 | ) | (82 | ) | (77 | ) | 16 | (32 | ) | ||||||||||||||
Income tax expense (GAAP) | $ | (1,626 | ) | $ | 5,410 | $ | 4,909 | $ | 6,958 | $ | 4,228 | $ | (7,036 | ) | $ | (5,854 | ) | ||||||||||
Book value per common share reconciliation | |||||||||||||||||||||||||||
Tangible book value per common share | $ | 13.51 | $ | 13.70 | $ | 13.97 | $ | 13.83 | $ | 13.58 | $ | (.19 | ) | $ | (.07 | ) | |||||||||||
Effect of goodwill and other intangibles | 1.11 | 1.11 | .41 | .37 | .37 | — | .74 | ||||||||||||||||||||
Book value per common share (GAAP) | $ | 14.62 | $ | 14.81 | $ | 14.38 | $ | 14.20 | $ | 13.95 | $ | (.19 | ) | $ | .67 | ||||||||||||
(1) Management evaluates the capital position and operating performance of State Bank Financial Corporation (the “Company”) by using certain financial measures not calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), including: interest income - taxable equivalent, net interest income - taxable equivalent, (amortization) accretion of FDIC receivable for loss share agreements, operating income before taxes - taxable equivalent, income tax expense, and tangible book value per common share. The Company has included these non-GAAP financial measures in this press release for the applicable periods presented. Management believes that the presentation of these non-GAAP financial measures (a) provides important supplemental information that contributes to a proper understanding of the Company’s operating performance, (b) enables a more complete understanding of factors and trends affecting the Company’s business, and (c) allows investors to evaluate the Company’s performance in a manner similar to management, the financial services industry, bank stock analysts, and bank regulators. Management uses non-GAAP measures as follows: preparation of the Company’s operating budgets, monthly financial performance reporting, and presentation to investors of Company performance.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the accompanying table. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. These non-GAAP financial measures should not be considered as substitutes for GAAP financial measures, and the Company strongly encourages investors to review the GAAP financial measures included in this press release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this press release with other companies’ non-GAAP financial measures having the same or similar names.
8
State Bank Financial Corporation | ||||||||||||||||||||||||||||
2Q15 Financial Supplement: Table 3 | ||||||||||||||||||||||||||||
Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||||||
Quarterly (Unaudited) | ||||||||||||||||||||||||||||
2Q15 change vs | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2Q15 | 1Q15 | 4Q14 | 3Q14 | 2Q14 | 1Q15 | 2Q14 | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Cash and amounts due from depository institutions | $ | 21,903 | $ | 20,426 | $ | 10,550 | $ | 17,209 | $ | 8,333 | $ | 1,477 | $ | 13,570 | ||||||||||||||
Interest-bearing deposits in other financial institutions | 179,831 | 285,971 | 470,608 | 459,271 | 499,400 | (106,140 | ) | (319,569 | ) | |||||||||||||||||||
Cash and cash equivalents | 201,734 | 306,397 | 481,158 | 476,480 | 507,733 | (104,663 | ) | (305,999 | ) | |||||||||||||||||||
Investment securities available-for-sale | 815,277 | 819,609 | 640,086 | 532,447 | 494,874 | (4,332 | ) | 320,403 | ||||||||||||||||||||
Loans | 2,042,186 | 2,000,189 | 1,634,529 | 1,504,725 | 1,441,606 | 41,997 | 600,580 | |||||||||||||||||||||
Allowance for loan and lease losses (1) | (29,569 | ) | (29,982 | ) | (28,638 | ) | (27,231 | ) | (35,607 | ) | 413 | 6,038 | ||||||||||||||||
Loans, net | 2,012,617 | 1,970,207 | 1,605,891 | 1,477,494 | 1,405,999 | 42,410 | 606,618 | |||||||||||||||||||||
Loans held-for-sale | 64,047 | 45,211 | 3,174 | 1,283 | 726 | 18,836 | 63,321 | |||||||||||||||||||||
Other real estate owned | 15,055 | 16,848 | 8,568 | 15,169 | 23,938 | (1,793 | ) | (8,883 | ) | |||||||||||||||||||
Premises and equipment, net | 45,608 | 46,370 | 35,286 | 34,696 | 34,820 | (762 | ) | 10,788 | ||||||||||||||||||||
Goodwill | 31,049 | 30,510 | 10,606 | 10,381 | 10,381 | 539 | 20,668 | |||||||||||||||||||||
Other intangibles, net | 8,922 | 9,045 | 2,752 | 1,511 | 1,663 | (123 | ) | 7,259 | ||||||||||||||||||||
SBA servicing rights | 2,185 | 1,902 | 1,516 | — | — | 283 | 2,185 | |||||||||||||||||||||
FDIC receivable for loss share agreements | — | 17,098 | 22,320 | 26,221 | 44,775 | (17,098 | ) | (44,775 | ) | |||||||||||||||||||
Bank-owned life insurance | 57,810 | 57,348 | 41,479 | 41,136 | 40,803 | 462 | 17,007 | |||||||||||||||||||||
Other assets | 46,004 | 31,363 | 29,374 | 30,779 | 20,093 | 14,641 | 25,911 | |||||||||||||||||||||
Total assets | $ | 3,300,308 | $ | 3,351,908 | $ | 2,882,210 | $ | 2,647,597 | $ | 2,585,805 | $ | (51,600 | ) | $ | 714,503 | |||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 762,100 | $ | 691,938 | $ | 577,295 | $ | 524,634 | $ | 461,434 | $ | 70,162 | $ | 300,666 | ||||||||||||||
Interest-bearing deposits | 1,974,185 | 2,085,997 | 1,814,387 | 1,631,340 | 1,653,779 | (111,812 | ) | 320,406 | ||||||||||||||||||||
Total deposits | 2,736,285 | 2,777,935 | 2,391,682 | 2,155,974 | 2,115,213 | (41,650 | ) | 621,072 | ||||||||||||||||||||
Securities sold under agreements to repurchase | 11,747 | 8,250 | — | — | — | 3,497 | 11,747 | |||||||||||||||||||||
Notes payable | 2,765 | 2,769 | 2,771 | 2,776 | 2,779 | (4 | ) | (14 | ) | |||||||||||||||||||
Other liabilities | 26,527 | 33,708 | 23,662 | 30,570 | 19,506 | (7,181 | ) | 7,021 | ||||||||||||||||||||
Total liabilities | 2,777,324 | 2,822,662 | 2,418,115 | 2,189,320 | 2,137,498 | (45,338 | ) | 639,826 | ||||||||||||||||||||
Total shareholders’ equity | 522,984 | 529,246 | 464,095 | 458,277 | 448,307 | (6,262 | ) | 74,677 | ||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,300,308 | $ | 3,351,908 | $ | 2,882,210 | $ | 2,647,597 | $ | 2,585,805 | $ | (51,600 | ) | $ | 714,503 | |||||||||||||
Capital Ratios (2) | ||||||||||||||||||||||||||||
Average equity to average assets | 15.84 | % | 15.80 | % | 16.13 | % | 17.20 | % | 17.14 | % | .04 | % | (1.30 | )% | ||||||||||||||
Leverage ratio | 14.78 | 15.00 | 15.90 | 17.16 | 16.84 | (.22 | ) | (2.06 | ) | |||||||||||||||||||
CET1 risk-based capital ratio | 18.83 | 19.51 | N/A | N/A | N/A | (.68 | ) | N/A | ||||||||||||||||||||
Tier I risk-based capital ratio | 18.83 | 19.51 | 23.12 | 25.17 | 27.06 | (.68 | ) | (8.23 | ) | |||||||||||||||||||
Total risk-based capital ratio | 19.98 | 20.70 | 24.37 | 26.42 | 28.32 | (.72 | ) | (8.34 | ) | |||||||||||||||||||
(1) Allowance for loan losses on purchased credit impaired loans was approximately $9.9 million at 2Q15, $10.6 million at 1Q15, $10.2 million at 4Q14, $8.4 million at 3Q14 and $17.7 million at 2Q14.
(2) Beginning January 1, 2015, the Company's ratios are calculated using the Basel III framework. Capital ratios for prior periods were calculated using the Basel I framework. The Common Equity Tier 1 (CET1) capital ratio is a new ratio introduced under the Basel III framework.
9
State Bank Financial Corporation | ||||||||||||||||||||||||||||
2Q15 Financial Supplement: Table 4 | ||||||||||||||||||||||||||||
Condensed Consolidated Income Statements | ||||||||||||||||||||||||||||
Quarterly (Unaudited) | ||||||||||||||||||||||||||||
2Q15 change vs | ||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | 2Q15 | 1Q15 | 4Q14 | 3Q14 | 2Q14 | 1Q15 | 2Q14 | |||||||||||||||||||||
Net Interest Income: | ||||||||||||||||||||||||||||
Interest income on loans | $ | 23,070 | $ | 21,400 | $ | 17,416 | $ | 16,162 | $ | 15,350 | $ | 1,670 | $ | 7,720 | ||||||||||||||
Accretion income on loans | 8,365 | 16,069 | 14,124 | 21,110 | 17,087 | (7,704 | ) | (8,722 | ) | |||||||||||||||||||
Interest income on invested funds | 4,032 | 3,602 | 2,928 | 2,545 | 2,522 | 430 | 1,510 | |||||||||||||||||||||
Interest expense | 1,972 | 1,979 | 1,923 | 1,857 | 1,846 | (7 | ) | 126 | ||||||||||||||||||||
Net interest income | 33,495 | 39,092 | 32,545 | 37,960 | 33,113 | (5,597 | ) | 382 | ||||||||||||||||||||
Provision for loan losses | 64 | 3,193 | 1,189 | 416 | 701 | (3,129 | ) | (637 | ) | |||||||||||||||||||
Net interest income after provision for loan losses | 33,431 | 35,899 | 31,356 | 37,544 | 32,412 | (2,468 | ) | 1,019 | ||||||||||||||||||||
Noninterest Income: | ||||||||||||||||||||||||||||
(Amortization) accretion of FDIC receivable for loss share agreements | (15,040 | ) | (1,448 | ) | 1,652 | (196 | ) | (1,949 | ) | (13,592 | ) | (13,091 | ) | |||||||||||||||
Service charges on deposits | 1,501 | 1,489 | 1,274 | 1,206 | 1,196 | 12 | 305 | |||||||||||||||||||||
Mortgage banking income | 3,480 | 2,680 | 322 | 191 | 163 | 800 | 3,317 | |||||||||||||||||||||
Payroll fee income | 956 | 1,158 | 1,050 | 875 | 822 | (202 | ) | 134 | ||||||||||||||||||||
SBA income | 1,380 | 1,123 | 477 | — | — | 257 | 1,380 | |||||||||||||||||||||
ATM income | 773 | 725 | 624 | 621 | 636 | 48 | 137 | |||||||||||||||||||||
Bank-owned life insurance income | 462 | 455 | 343 | 333 | 329 | 7 | 133 | |||||||||||||||||||||
Gain (loss) on sale of investment securities | (59 | ) | 380 | 223 | — | 12 | (439 | ) | (71 | ) | ||||||||||||||||||
Other | 835 | 2,247 | 972 | 398 | 190 | (1,412 | ) | 645 | ||||||||||||||||||||
Total noninterest income | (5,712 | ) | 8,809 | 6,937 | 3,428 | 1,399 | (14,521 | ) | (7,111 | ) | ||||||||||||||||||
Noninterest Expense: | ||||||||||||||||||||||||||||
Salaries and employee benefits | 20,506 | 19,582 | 17,797 | 14,644 | 14,575 | 924 | 5,931 | |||||||||||||||||||||
Occupancy and equipment | 3,219 | 3,105 | 2,615 | 2,440 | 2,314 | 114 | 905 | |||||||||||||||||||||
Data processing | 2,435 | 2,280 | 1,909 | 1,758 | 1,714 | 155 | 721 | |||||||||||||||||||||
Legal and professional fees | 1,284 | 1,484 | 844 | 851 | 731 | (200 | ) | 553 | ||||||||||||||||||||
Merger-related expenses | 876 | 137 | 306 | 223 | 265 | 739 | 611 | |||||||||||||||||||||
Marketing | 599 | 436 | 491 | 453 | 548 | 163 | 51 | |||||||||||||||||||||
Federal deposit insurance premiums and other regulatory fees | 455 | 506 | 393 | 356 | 337 | (51 | ) | 118 | ||||||||||||||||||||
Loan collection and OREO costs | (114 | ) | 405 | (112 | ) | — | (32 | ) | (519 | ) | (82 | ) | ||||||||||||||||
Amortization of intangibles | 442 | 417 | 257 | 152 | 161 | 25 | 281 | |||||||||||||||||||||
Other | 1,664 | 1,742 | 1,299 | 1,633 | 1,463 | (78 | ) | 201 | ||||||||||||||||||||
Total noninterest expense | 31,366 | 30,094 | 25,799 | 22,510 | 22,076 | 1,272 | 9,290 | |||||||||||||||||||||
Income (Loss) Before Income Taxes | (3,647 | ) | 14,614 | 12,494 | 18,462 | 11,735 | (18,261 | ) | (15,382 | ) | ||||||||||||||||||
Income tax expense (benefit) | (1,626 | ) | 5,410 | 4,909 | 6,958 | 4,228 | (7,036 | ) | (5,854 | ) | ||||||||||||||||||
Net Income (Loss) | $ | (2,021 | ) | $ | 9,204 | $ | 7,585 | $ | 11,504 | $ | 7,507 | $ | (11,225 | ) | $ | (9,528 | ) | |||||||||||
Net Income (Loss) Per Share | ||||||||||||||||||||||||||||
Basic | $ | (.06 | ) | $ | .27 | $ | .24 | $ | .36 | $ | .23 | $ | (.33 | ) | $ | (.29 | ) | |||||||||||
Diluted | (.06 | ) | .25 | .22 | .34 | .22 | (.31 | ) | (.28 | ) | ||||||||||||||||||
Weighted Average Shares Outstanding | ||||||||||||||||||||||||||||
Basic | 35,741,761 | 34,373,665 | 32,271,537 | 32,206,889 | 32,126,260 | 1,368,096 | 3,615,501 | |||||||||||||||||||||
Diluted | 35,741,761 | 36,437,322 | 33,935,366 | 33,755,595 | 33,589,797 | (695,561 | ) | 2,151,964 | ||||||||||||||||||||
10
State Bank Financial Corporation | ||||||||||||
2Q15 Financial Supplement: Table 5 | ||||||||||||
Condensed Consolidated Income Statements | ||||||||||||
Year to Date (Unaudited) | ||||||||||||
Six Months Ended June 30 | YTD Change | |||||||||||
(Dollars in thousands, except per share amounts) | 2015 | 2014 | ||||||||||
Net Interest Income: | ||||||||||||
Interest income on loans | $ | 44,470 | $ | 30,598 | $ | 13,872 | ||||||
Accretion income on loans | 24,434 | 43,623 | (19,189 | ) | ||||||||
Interest income on invested funds | 7,634 | 5,015 | 2,619 | |||||||||
Interest expense | 3,951 | 3,740 | 211 | |||||||||
Net interest income | 72,587 | 75,496 | (2,909 | ) | ||||||||
Provision for loan losses | 3,257 | 1,291 | 1,966 | |||||||||
Net interest income after provision for loan losses | 69,330 | 74,205 | (4,875 | ) | ||||||||
Noninterest Income: | ||||||||||||
Amortization of FDIC receivable for loss share agreements | (16,488 | ) | (17,241 | ) | 753 | |||||||
Service charges on deposits | 2,990 | 2,354 | 636 | |||||||||
Mortgage banking income | 6,160 | 322 | 5,838 | |||||||||
Payroll fee income | 2,114 | 1,775 | 339 | |||||||||
SBA income | 2,503 | — | 2,503 | |||||||||
ATM income | 1,498 | 1,226 | 272 | |||||||||
Bank-owned life insurance income | 917 | 658 | 259 | |||||||||
Gain on sale of investment securities | 321 | 23 | 298 | |||||||||
Other | 3,082 | 120 | 2,962 | |||||||||
Total noninterest income | 3,097 | (10,763 | ) | 13,860 | ||||||||
Noninterest Expense: | ||||||||||||
Salaries and employee benefits | 40,088 | 29,652 | 10,436 | |||||||||
Occupancy and equipment | 6,324 | 4,843 | 1,481 | |||||||||
Data processing | 4,715 | 3,386 | 1,329 | |||||||||
Legal and professional fees | 2,768 | 1,745 | 1,023 | |||||||||
Merger-related expenses | 1,013 | 265 | 748 | |||||||||
Marketing | 1,035 | 880 | 155 | |||||||||
Federal deposit insurance premiums and other regulatory fees | 961 | 671 | 290 | |||||||||
Loan collection and OREO costs | 291 | 592 | (301 | ) | ||||||||
Amortization of intangibles | 859 | 323 | 536 | |||||||||
Other | 3,406 | 2,802 | 604 | |||||||||
Total noninterest expense | 61,460 | 45,159 | 16,301 | |||||||||
Income Before Income Taxes | 10,967 | 18,283 | (7,316 | ) | ||||||||
Income tax expense | 3,784 | 6,454 | (2,670 | ) | ||||||||
Net Income | $ | 7,183 | $ | 11,829 | $ | (4,646 | ) | |||||
Net Income Per Share | ||||||||||||
Basic | $ | .20 | $ | .37 | $ | (.17 | ) | |||||
Diluted | .19 | .35 | (.16 | ) | ||||||||
Weighted Average Shares Outstanding | ||||||||||||
Basic | 35,061,492 | 32,110,454 | 2,951,038 | |||||||||
Diluted | 37,300,987 | 33,617,054 | 3,683,933 | |||||||||
11
State Bank Financial Corporation | ||||||||||||||||||||||||||||
2Q15 Financial Supplement: Table 6 | ||||||||||||||||||||||||||||
Condensed Consolidated Composition of Loans and Deposits at Period Ends | ||||||||||||||||||||||||||||
Quarterly (Unaudited) | ||||||||||||||||||||||||||||
2Q15 change vs | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2Q15 | 1Q15 | 4Q14 | 3Q14 | 2Q14 | 1Q15 | 2Q14 | |||||||||||||||||||||
Composition of Loans | ||||||||||||||||||||||||||||
Organic loans (1): | ||||||||||||||||||||||||||||
Construction, land & land development | $ | 399,982 | $ | 388,148 | $ | 310,987 | $ | 324,008 | $ | 271,525 | $ | 11,834 | $ | 128,457 | ||||||||||||||
Other commercial real estate | 634,943 | 606,347 | 609,478 | 591,672 | 616,418 | 28,596 | 18,525 | |||||||||||||||||||||
Total commercial real estate | 1,034,925 | 994,495 | 920,465 | 915,680 | 887,943 | 40,430 | 146,982 | |||||||||||||||||||||
Residential real estate | 118,612 | 107,554 | 91,448 | 80,231 | 75,683 | 11,058 | 42,929 | |||||||||||||||||||||
Owner-occupied real estate | 205,805 | 191,557 | 188,933 | 164,514 | 167,129 | 14,248 | 38,676 | |||||||||||||||||||||
Commercial, financial & agricultural | 126,157 | 108,929 | 90,930 | 102,417 | 91,552 | 17,228 | 34,605 | |||||||||||||||||||||
Leases | 26,709 | 21,491 | 19,959 | 19,636 | — | 5,218 | 26,709 | |||||||||||||||||||||
Consumer | 12,078 | 9,442 | 8,658 | 9,445 | 7,997 | 2,636 | 4,081 | |||||||||||||||||||||
Total organic loans | 1,524,286 | 1,433,468 | 1,320,393 | 1,291,923 | 1,230,304 | 90,818 | 293,982 | |||||||||||||||||||||
Purchased non-credit impaired loans(2): | ||||||||||||||||||||||||||||
Construction, land & land development | 61,089 | 67,129 | 2,166 | — | — | (6,040 | ) | 61,089 | ||||||||||||||||||||
Other commercial real estate | 91,212 | 94,917 | 26,793 | — | — | (3,705 | ) | 91,212 | ||||||||||||||||||||
Total commercial real estate | 152,301 | 162,046 | 28,959 | — | — | (9,745 | ) | 152,301 | ||||||||||||||||||||
Residential real estate | 82,668 | 88,871 | 43,669 | — | — | (6,203 | ) | 82,668 | ||||||||||||||||||||
Owner-occupied real estate | 73,409 | 77,946 | 22,743 | — | — | (4,537 | ) | 73,409 | ||||||||||||||||||||
Commercial, financial & agricultural | 28,656 | 42,494 | 11,635 | — | — | (13,838 | ) | 28,656 | ||||||||||||||||||||
Consumer | 3,505 | 4,517 | 791 | — | — | (1,012 | ) | 3,505 | ||||||||||||||||||||
Total purchased non-credit impaired loans | 340,539 | 375,874 | 107,797 | — | — | (35,335 | ) | 340,539 | ||||||||||||||||||||
Purchased credit impaired loans (3): | ||||||||||||||||||||||||||||
Construction, land & land development | 20,002 | 18,791 | 24,544 | 25,463 | 23,851 | 1,211 | (3,849 | ) | ||||||||||||||||||||
Other commercial real estate | 48,187 | 54,211 | 58,680 | 54,573 | 54,212 | (6,024 | ) | (6,025 | ) | |||||||||||||||||||
Total commercial real estate | 68,189 | 73,002 | 83,224 | 80,036 | 78,063 | (4,813 | ) | (9,874 | ) | |||||||||||||||||||
Residential real estate | 70,537 | 74,876 | 78,793 | 80,859 | 86,371 | (4,339 | ) | (15,834 | ) | |||||||||||||||||||
Owner-occupied real estate | 35,036 | 39,210 | 42,168 | 48,834 | 43,409 | (4,174 | ) | (8,373 | ) | |||||||||||||||||||
Commercial, financial & agricultural | 3,234 | 3,427 | 1,953 | 2,790 | 3,081 | (193 | ) | 153 | ||||||||||||||||||||
Consumer | 365 | 332 | 201 | 283 | 378 | 33 | (13 | ) | ||||||||||||||||||||
Total purchased credit impaired loans | 177,361 | 190,847 | 206,339 | 212,802 | 211,302 | (13,486 | ) | (33,941 | ) | |||||||||||||||||||
Total loans | $ | 2,042,186 | $ | 2,000,189 | $ | 1,634,529 | $ | 1,504,725 | $ | 1,441,606 | $ | 41,997 | $ | 600,580 | ||||||||||||||
Composition of Deposits | ||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 762,100 | $ | 691,938 | $ | 577,295 | $ | 524,634 | $ | 461,434 | $ | 70,162 | $ | 300,666 | ||||||||||||||
Interest-bearing transaction accounts | 497,715 | 562,378 | 495,966 | 377,220 | 387,855 | (64,663 | ) | 109,860 | ||||||||||||||||||||
Savings and money market deposits | 1,038,292 | 1,052,677 | 954,626 | 910,488 | 898,833 | (14,385 | ) | 139,459 | ||||||||||||||||||||
Time deposits less than $250,000 | 301,375 | 319,043 | 247,757 | 234,145 | 247,648 | (17,668 | ) | 53,727 | ||||||||||||||||||||
Time deposits $250,000 or greater | 59,161 | 58,151 | 18,946 | 20,418 | 20,975 | 1,010 | 38,186 | |||||||||||||||||||||
Brokered and wholesale time deposits | 77,642 | 93,748 | 97,092 | 89,069 | 98,468 | (16,106 | ) | (20,826 | ) | |||||||||||||||||||
Total deposits | $ | 2,736,285 | $ | 2,777,935 | $ | 2,391,682 | $ | 2,155,974 | $ | 2,115,213 | $ | (41,650 | ) | $ | 621,072 | |||||||||||||
(1) Loans originated by State Bank and Trust Company ("State Bank") and First Bank of Georgia ("First Bank").
(2) Consists of loans purchased through the Bank of Atlanta and First Bank acquisitions.
(3) Acquired loans, which at acquisition, management determined it was probable that we would be unable to collect all contractual principal and interest payments due.
12
State Bank Financial Corporation | ||||||||||||||||||||||||||||
2Q15 Financial Supplement: Table 7 | ||||||||||||||||||||||||||||
Condensed Consolidated Asset Quality Data | ||||||||||||||||||||||||||||
Quarterly (Unaudited) | ||||||||||||||||||||||||||||
2Q15 change vs | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2Q15 | 1Q15 | 4Q14 | 3Q14 | 2Q14 | 1Q15 | 2Q14 | |||||||||||||||||||||
Allowance for loan and lease losses on organic loans | ||||||||||||||||||||||||||||
Beginning Balance | $ | 19,424 | $ | 18,392 | $ | 18,828 | $ | 17,885 | $ | 16,858 | $ | 1,032 | $ | 2,566 | ||||||||||||||
Charge-offs | (64 | ) | (76 | ) | (1,250 | ) | (87 | ) | (79 | ) | 12 | 15 | ||||||||||||||||
Recoveries | 39 | 38 | 39 | 30 | 106 | 1 | (67 | ) | ||||||||||||||||||||
Net (charge-offs) recoveries | (25 | ) | (38 | ) | (1,211 | ) | (57 | ) | 27 | 13 | (52 | ) | ||||||||||||||||
Provision for loan losses | 222 | 1,070 | 775 | 1,000 | 1,000 | (848 | ) | (778 | ) | |||||||||||||||||||
Ending Balance | $ | 19,621 | $ | 19,424 | $ | 18,392 | $ | 18,828 | $ | 17,885 | $ | 197 | $ | 1,736 | ||||||||||||||
Allowance for loan and lease losses on purchased loans (1) (2) | ||||||||||||||||||||||||||||
Beginning Balance | $ | 10,558 | $ | 10,246 | $ | 8,403 | $ | 17,722 | $ | 19,182 | $ | 312 | $ | (8,624 | ) | |||||||||||||
Charge-offs | (2,201 | ) | (3,231 | ) | (898 | ) | (5,329 | ) | (4,881 | ) | 1,030 | 2,680 | ||||||||||||||||
Recoveries | 1,200 | 924 | 2,410 | 2,417 | 3,326 | 276 | (2,126 | ) | ||||||||||||||||||||
Net (charge-offs) recoveries | (1,001 | ) | (2,307 | ) | 1,512 | (2,912 | ) | (1,555 | ) | 1,306 | 554 | |||||||||||||||||
Provision for loan losses | 391 | 2,619 | 331 | (6,407 | ) | 95 | (2,228 | ) | 296 | |||||||||||||||||||
Ending Balance | $ | 9,948 | $ | 10,558 | $ | 10,246 | $ | 8,403 | $ | 17,722 | $ | (610 | ) | $ | (7,774 | ) | ||||||||||||
Nonperforming organic assets | ||||||||||||||||||||||||||||
Nonaccrual loans | $ | 1,317 | $ | 1,428 | $ | 1,245 | $ | 740 | $ | 1,063 | $ | (111 | ) | $ | 254 | |||||||||||||
Troubled debt restructurings | 3,317 | 3,374 | 4,301 | 875 | 875 | (57 | ) | 2,442 | ||||||||||||||||||||
Total nonperforming organic loans | 4,634 | 4,802 | 5,546 | 1,615 | 1,938 | (168 | ) | 2,696 | ||||||||||||||||||||
Other real estate owned | 160 | — | 74 | 410 | 729 | 160 | (569 | ) | ||||||||||||||||||||
Total nonperforming organic assets | $ | 4,794 | $ | 4,802 | $ | 5,620 | $ | 2,025 | $ | 2,667 | $ | (8 | ) | $ | 2,127 | |||||||||||||
Ratios for organic assets | ||||||||||||||||||||||||||||
Annualized QTD charge-offs (recoveries) to average organic loans | .01 | % | .01 | % | .36 | % | .02 | % | (.01 | )% | — | % | .02 | % | ||||||||||||||
Nonperforming loans to organic loans | .30 | .33 | .42 | .13 | .16 | (.03 | ) | .14 | ||||||||||||||||||||
Nonperforming assets to organic loans + OREO | .31 | .33 | .43 | .16 | .22 | (.02 | ) | .09 | ||||||||||||||||||||
Past due loans to organic loans | .08 | .11 | .17 | .10 | .13 | (.03 | ) | (.05 | ) | |||||||||||||||||||
Allowance for loan and lease losses to organic loans | 1.29 | 1.36 | 1.39 | 1.46 | 1.45 | (.07 | ) | (.16 | ) | |||||||||||||||||||
Ratios for purchased non-credit impaired loans | ||||||||||||||||||||||||||||
Annualized QTD charge-offs (recoveries) to average PNCI loans | .04 | % | — | % | — | % | N/A | N/A | .04 | % | N/A | |||||||||||||||||
Nonperforming loans to PNCI loans | .03 | .04 | .10 | N/A | N/A | (.01 | ) | N/A | ||||||||||||||||||||
Past due loans to PNCI loans | .49 | .36 | .46 | N/A | N/A | .13 | N/A | |||||||||||||||||||||
Ratios for purchased credit impaired loans (3) | ||||||||||||||||||||||||||||
Annualized QTD charge-offs (recoveries) to average PCI loans | 4.81 | % | 6.73 | % | 1.66 | % | 9.82 | % | 8.29 | % | (1.92 | )% | (3.48 | )% | ||||||||||||||
Past due loans to PCI loans | 13.31 | 18.48 | 15.62 | 15.14 | 11.03 | (5.17 | ) | 2.28 | ||||||||||||||||||||
Allowance for loan and lease losses to PCI loans | 5.61 | 5.53 | 4.97 | 3.95 | 8.39 | .08 | (2.78 | ) | ||||||||||||||||||||
(1) Includes purchased non-credit impaired loan charge-offs and corresponding provision for loan losses of $46,000 for 2Q15 and $2,000 for 1Q15, respectively, resulting in no ending allowance for purchased non-credit impaired loans at each period end.
(2) Allowance for loan and lease losses amount attributable to FDIC loss share agreements for purchased credit impaired loans was $(549,000) for
2Q15, $(496,000) for 1Q15, $83,000 for 4Q14, $5.8 million for 3Q14, and $(394,000) for 2Q14.
(3) For each period presented, a portion of the Company's purchased credit impaired loans were contractually past due; however, such delinquencies
were included in the Company's performance expectations in determining the fair values of purchased credit impaired loans at each acquisition and at subsequent valuation dates. All purchased credit impaired loan cash flows and the timing of such cash flows continue to be estimable and probable of collection and thus accretion income continues to be recognized on these assets. As such, purchased credit impaired loans are not considered to be nonperforming assets.
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State Bank Financial Corporation | ||||||||||||||||||||||||||
2Q15 Financial Supplement: Table 8 | ||||||||||||||||||||||||||
Condensed Consolidated Average Balances and Yield Analysis | ||||||||||||||||||||||||||
Quarterly (Unaudited) | ||||||||||||||||||||||||||
2Q15 change vs | ||||||||||||||||||||||||||
(Dollars in thousands) | 2Q15 | 1Q15 | 4Q14 | 3Q14 | 2Q14 | 1Q15 | 2Q14 | |||||||||||||||||||
Average Balances | ||||||||||||||||||||||||||
Interest-bearing deposits in other financial institutions | $ | 191,653 | $ | 320,248 | $ | 450,362 | $ | 476,190 | $ | 490,009 | (128,595 | ) | (298,356 | ) | ||||||||||||
Investment securities | 821,998 | 807,002 | 603,101 | 523,488 | 481,240 | 14,996 | 340,758 | |||||||||||||||||||
Loans, excluding purchased credit impaired (1) | 1,505,558 | 1,359,300 | 1,319,586 | 1,246,008 | 1,192,494 | 146,258 | 313,064 | |||||||||||||||||||
Purchased credit impaired loans | 179,579 | 194,471 | 214,518 | 215,318 | 236,178 | (14,892 | ) | (56,599 | ) | |||||||||||||||||
Total earning assets | 3,113,449 | 3,113,258 | 2,698,476 | 2,461,004 | 2,399,921 | 191 | 713,528 | |||||||||||||||||||
Total nonearning assets | 202,975 | 210,455 | 159,733 | 148,772 | 191,104 | (7,480 | ) | 11,871 | ||||||||||||||||||
Total assets | 3,316,424 | 3,323,713 | 2,858,209 | 2,609,776 | 2,591,025 | (7,289 | ) | 725,399 | ||||||||||||||||||
Interest-bearing transaction accounts | 522,147 | 507,087 | 433,545 | 376,052 | 376,143 | 15,060 | 146,004 | |||||||||||||||||||
Savings & money market deposits | 1,035,706 | 1,072,818 | 958,782 | 896,503 | 892,168 | (37,112 | ) | 143,538 | ||||||||||||||||||
Time deposits less than $250,000 | 309,076 | 327,363 | 240,509 | 239,924 | 252,459 | (18,287 | ) | 56,617 | ||||||||||||||||||
Time deposits $250,000 or greater | 58,024 | 56,973 | 66,009 | 20,906 | 21,489 | 1,051 | 36,535 | |||||||||||||||||||
Brokered and wholesale time deposits | 82,840 | 103,464 | 86,371 | 96,743 | 100,395 | (20,624 | ) | (17,555 | ) | |||||||||||||||||
Notes payable | 2,767 | 2,771 | 2,775 | 2,778 | 3,365 | (4 | ) | (598 | ) | |||||||||||||||||
FHLB Advances | — | — | 326 | — | — | — | — | |||||||||||||||||||
Securities sold under agreements to repurchase | 8,900 | 24,971 | 4,284 | — | — | (16,071 | ) | 8,900 | ||||||||||||||||||
Total interest-bearing liabilities | 2,019,460 | 2,095,447 | 1,792,601 | 1,632,906 | 1,646,019 | (75,987 | ) | 373,441 | ||||||||||||||||||
Noninterest-bearing deposits | 739,025 | 648,379 | 554,350 | 495,531 | 465,941 | 90,646 | 273,084 | |||||||||||||||||||
Other liabilities | 32,680 | 54,619 | 50,121 | 32,357 | 34,890 | (21,939 | ) | (2,210 | ) | |||||||||||||||||
Shareholders’ equity | 525,259 | 525,268 | 461,137 | 448,982 | 444,175 | (9 | ) | 81,084 | ||||||||||||||||||
Total liabilities and shareholders' equity | 3,316,424 | 3,323,713 | 2,858,209 | 2,609,776 | 2,591,025 | (7,289 | ) | 725,399 | ||||||||||||||||||
Interest Margins (2) | ||||||||||||||||||||||||||
Interest-bearing deposits in other financial institutions | .29 | % | .27 | % | .26 | % | .26 | % | .26 | % | .02 | % | .03 | % | ||||||||||||
Investment securities, tax-equivalent basis (3) | 1.90 | 1.72 | 1.73 | 1.70 | 1.84 | .18 | .06 | |||||||||||||||||||
Loans, excluding purchased credit impaired, tax-equivalent basis (4) | 4.84 | 4.87 | 4.85 | 5.17 | 5.19 | (.03 | ) | (.35 | ) | |||||||||||||||||
Purchased credit impaired loans | 18.68 | 33.51 | 26.12 | 38.90 | 29.02 | (14.83 | ) | (10.34 | ) | |||||||||||||||||
Total earning assets | 4.58 | % | 5.37 | % | 5.08 | % | 6.44 | % | 5.86 | % | (.79 | )% | (1.28 | )% | ||||||||||||
Interest-bearing transaction accounts | .14 | .14 | .13 | .13 | .12 | — | .02 | |||||||||||||||||||
Savings & money market deposits | .46 | .45 | .46 | .46 | .45 | .01 | .01 | |||||||||||||||||||
Time deposits less than $250,000 | .32 | .30 | .43 | .54 | .57 | .02 | (.25 | ) | ||||||||||||||||||
Time deposits $250,000 or greater | .57 | .55 | .75 | .78 | .80 | .02 | (.23 | ) | ||||||||||||||||||
Brokered and wholesale time deposits | .97 | .94 | 1.02 | 1.08 | .95 | .03 | .02 | |||||||||||||||||||
Notes payable | 8.55 | 7.61 | 9.01 | 9.00 | 10.37 | .94 | (1.82 | ) | ||||||||||||||||||
FHLB Advances | — | — | 1.22 | — | — | — | — | |||||||||||||||||||
Securities sold under agreements to repurchase | .27 | .24 | .09 | — | — | .03 | .27 | |||||||||||||||||||
Total interest-bearing liabilities | .39 | % | .38 | % | .43 | % | .45 | % | .45 | % | .01 | % | (.06 | )% | ||||||||||||
Net interest spread | 4.19 | % | 4.99 | % | 4.65 | % | 5.99 | % | 5.41 | % | (.80 | )% | (1.22 | )% | ||||||||||||
Net interest margin | 4.33 | % | 5.11 | % | 4.80 | % | 6.14 | % | 5.55 | % | (.78 | )% | (1.22 | )% | ||||||||||||
(1) Includes average nonaccrual loans of $4.9 million for 2Q15, $5.1 million for 1Q15, $5.6 million for 4Q14, $1.7 million for 3Q14, and $2.0 million for 2Q14.
(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 $5,000 for 2Q15, $27,000 for 1Q15, $4,000 for 4Q14, $7,000 for 3Q14, and $11,000 for 2Q14.
(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 $104,000 for 2Q15, $98,000 for 1Q15, $80,000 for 4Q14, $75,000 for 3Q14, and $66,000 for 2Q14.
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