Attached files
| file | filename |
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| 8-K - 8-K - STATE BANK FINANCIAL CORP | a8kcoverpage093015.htm |
| EX-99.3 - EXHIBIT 99.3 - STATE BANK FINANCIAL CORP | patriotpressrelease.htm |
| EX-99.2 - EXHIBIT 99.2 - STATE BANK FINANCIAL CORP | a3q15earningspresentatio.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 Operating Income of $11.4 Million
for Third Quarter 2015
▪ | Operating earnings per diluted share of $.31 |
▪ | $98 million of net loan growth, or 19% annualized |
▪ | Announced organizational realignment as part of broader efficiency initiative in September |
▪ | Acquisition of equipment finance group subsequent to quarter-end |
ATLANTA, GA, October 22, 2015 - State Bank Financial Corporation (NASDAQ: STBZ) today announced operating income of $11.4 million, or $.31 per fully diluted share for the quarter ended September 30, 2015, compared to $7.7 million, or $.21 per fully diluted share for the second quarter of 2015. Interest income on loans improved to $24.2 million, a $1.1 million increase from the second quarter of 2015, and was driven by continued strong loan growth. Additionally, recovery activity, much of which would have previously been shared with the FDIC under the bank’s now terminated loss share agreements, contributed significantly to the improvement in operating income.
Operating income excludes severance and merger-related expenses that are not considered part of ongoing operations. Including those items, net income for the third quarter of 2015 was $9.1 million, compared to a net loss of $2.0 million for the second quarter of 2015. Fully diluted earnings per share were $.25 in the third quarter of 2015 compared to a fully diluted loss per share of $.06 in the second quarter of 2015.
Joe Evans, Chairman and CEO of State Bank Financial, commented, "This was another quarter of solid fundamentals as loans, core deposits, and fee income businesses continue to grow at an impressive pace. Also, recovery income related to previously charged-off loans exceeded expectations. I am pleased with the results of the third quarter, but even more pleased with the outlook."
Acquisition of Patriot Capital
In a separate release today, State Bank and Trust Company announced that it purchased the equipment finance origination platform of Patriot Capital Corporation, a leading provider of equipment financing to the retail petroleum industry. Patriot Capital is a privately owned company with 17 employees that finances equipment throughout the continental United States. Patriot Capital was founded in 2000 and is based in Atlanta, Georgia.
Tom Wiley, President of State Bank Financial, added, "I am very pleased with our strong loan growth this quarter and am excited about the addition of Patriot Capital's production in future periods. We expect our acquisition of Patriot Capital will further diversify and broaden our asset generating capabilities."
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Operating Highlights
Net interest income of $37.4 million in the third quarter of 2015 increased from $33.5 million in the second quarter of 2015 due to higher interest and accretion income on loans. Interest income on loans, excluding purchased credit impaired loans, for the third quarter of 2015 was $24.2 million, up $1.1 million from $23.1 million in the prior quarter. Accretion income on loans was $11.2 million in the third quarter of 2015, up from $8.4 million in the second quarter of 2015 due primarily to larger gains from early loan payoffs compared to the previous quarter. Base accretion declined $764,000 in the third quarter of 2015 compared to the prior quarter. As of September 30, 2015, approximately $97 million of accretable discount remains to be recognized as loan accretion income, compared to $104 million of accretable discount remaining at the end of the second quarter of 2015. Interest expense of $2.0 million in the third quarter of 2015 was essentially flat compared to the prior quarter. Cost of funds for the third quarter of 2015 was 28 basis points, down one basis point from the second quarter of 2015.
The organic loan portfolio continued to perform well in the third quarter of 2015 as past due organic loans represented only eight basis points of total organic loans. A net provision benefit of $265,000 was recognized in the third quarter of 2015, consisting of an $873,000 benefit to the provision on purchased credit impaired loans due to improving cash flow expectations. This was partially offset by a $614,000 provision expense on organic loans due to loan growth in the quarter.
Noninterest income, excluding amortization of the FDIC receivable for loss share agreements in the second quarter of 2015, was $8.9 million for the third quarter of 2015, down from $9.3 million in the second quarter of 2015. Noninterest income was negatively affected by the hedges on underlying fixed-rate loans, which contributed to a $636,000 linked-quarter decline. In addition, a decline in mortgage banking income was largely offset by increases in SBA and payroll fee income.
Total noninterest expense for the third quarter of 2015 was $32.4 million, a $1.1 million increase from
the second quarter of 2015, due almost entirely to higher salary and benefit costs as a result of severance related to the organizational realignment announced in September 2015. Severance expenses totaled $3.0 million in the third quarter of 2015 compared to $443,000 in the second quarter of 2015. Merger-related expenses totaled $717,000 in the third quarter of 2015, down from $876,000 in the second quarter of 2015.
Financial Condition
Total assets at September 30, 2015 were $3.4 billion, up from $3.3 billion at June 30, 2015. Period-end organic and purchased non-credit impaired loans increased to $2.0 billion at September 30, 2015, a net increase of $115.5 million from the second quarter of 2015. Purchased credit impaired loans decreased to $159.3 million at the end of the third quarter of 2015, an $18.0 million linked-quarter decline. Total net loans, excluding loans held for sale, were $2.1 billion at September 30, 2015, up $98.1 million from the second quarter of 2015.
Total deposits at September 30, 2015 were $2.8 billion, up from $2.7 billion at the end of the second quarter of 2015. Period-end noninterest-bearing demand deposits increased $61.0 million from the second quarter of 2015 and represented 29.4% of total deposits as of September 30, 2015. Average noninterest-bearing demand deposits increased $75.0 million from the second quarter of 2015, the 14th consecutive quarterly increase. Period-end and average transaction accounts, comprised of noninterest-bearing demand deposits and interest-bearing transaction accounts, increased $62.8 million and $39.4 million, respectively, from the second quarter of 2015.
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Tangible book value per share was $13.78 at the end of the third quarter of 2015. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 15.04% and a Tier I risk-based capital ratio of 18.64%.
Comparison to the Third Quarter of 2014
Net operating income for the quarter ended September 30, 2015 decreased $284,000 compared to the same period in 2014. The decrease in operating income was primarily due to the $10.0 million decrease in accretion income as the third quarter of 2014 benefited from $9.2 million in gains from loan pool closeouts. Net income decreased $2.4 million from the third quarter of 2014 primarily as a result of severance and merger-related charges recognized in the third quarter of 2015. Net interest income declined $513,000 as an $8.1 million increase in interest income on loans was more than offset by the previously mentioned decline in accretion income. Cost of funds for the third quarter of 2015 of 28 basis points was down seven basis points from the third quarter of 2014.
Comparisons to the third quarter of 2014 are materially affected by State Bank's acquisitions of Atlanta Bancorporation, Inc. on October 1, 2014 and Georgia-Carolina Bancshares, Inc. on January 1, 2015.
Noninterest income, excluding amortization of the FDIC receivable, increased $5.3 million in the third quarter of 2015 compared to the third quarter of 2014, primarily as a result of the mortgage banking and SBA lending units acquired in our two acquisitions. Operating expenses were also impacted by the acquisitions and increased $6.5 million during the third quarter of 2015 compared to the third quarter of 2014.
Total loans increased $635.0 million during the year-over-year period as growth in organic loans of $403.0 million and purchased non-credit impaired loans of $285.4 million was partially offset by a $53.5 million decline in purchased credit impaired loans. Total deposits increased $639.2 million for the quarter ended September 30, 2015, compared to the third quarter of 2014, including growth in noninterest-bearing deposits of $298.5 million and interest-bearing transaction accounts of $122.2 million.
Detailed Results
Supplemental tables displaying financial results for the third quarter of 2015, the previous four quarters and year-to-date 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 these non-GAAP financial measures, please refer to 3Q15 Financial Supplement: Table 8, Condensed Operating Results to GAAP Earnings Reconciliation, on page 13.
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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: 1.800.708.4508
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), with approximately $3.4 billion in assets as of September 30, 2015, is an Atlanta-based bank holding company for State Bank and Trust Company. State Bank operates 26 banking offices in Metro Atlanta, Middle Georgia and Augusta, Georgia, and seven mortgage origination offices.
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, our outlook for future periods and our expectation that our acquisition of Patriot Capital will further diversify and broaden our asset-generating capabilities. 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 | ||||||||||||||||||||||||||||
3Q15 Financial Supplement: Table 1 | ||||||||||||||||||||||||||||
Condensed Consolidated Financial Summary Results | ||||||||||||||||||||||||||||
Quarterly (Unaudited) | ||||||||||||||||||||||||||||
3Q15 change vs | ||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts; taxable equivalent) | 3Q15 | 2Q15 | 1Q15 | 4Q14 | 3Q14 | 2Q15 | 3Q14 | |||||||||||||||||||||
Income Statement Highlights | ||||||||||||||||||||||||||||
Interest income on loans | $ | 24,397 | $ | 23,174 | $ | 21,498 | $ | 17,496 | $ | 16,237 | $ | 1,223 | $ | 8,160 | ||||||||||||||
Accretion income on loans | 11,156 | 8,365 | 16,069 | 14,124 | 21,110 | 2,791 | (9,954 | ) | ||||||||||||||||||||
Interest income on invested funds | 4,054 | 4,037 | 3,629 | 2,932 | 2,552 | 17 | 1,502 | |||||||||||||||||||||
Total interest income (1) | 39,607 | 35,576 | 41,196 | 34,552 | 39,899 | 4,031 | (292 | ) | ||||||||||||||||||||
Interest expense | 1,977 | 1,972 | 1,979 | 1,923 | 1,857 | 5 | 120 | |||||||||||||||||||||
Net interest income (1) | 37,630 | 33,604 | 39,217 | 32,629 | 38,042 | 4,026 | (412 | ) | ||||||||||||||||||||
Provision for loan and lease losses | (265 | ) | 64 | 3,193 | 1,189 | 416 | (329 | ) | (681 | ) | ||||||||||||||||||
Adjusted (amortization) accretion of FDIC receivable for loss share agreements (1) (3) | — | (492 | ) | (1,448 | ) | 1,652 | (196 | ) | 492 | 196 | ||||||||||||||||||
Other noninterest income (1) (4) | 8,894 | 9,319 | 10,250 | 5,285 | 3,624 | (425 | ) | 5,270 | ||||||||||||||||||||
Total operating noninterest income (1) (3) | 8,894 | 8,827 | 8,802 | 6,937 | 3,428 | 67 | 5,466 | |||||||||||||||||||||
Operating noninterest expense (1) (5) | 28,687 | 30,038 | 29,585 | 23,999 | 22,207 | (1,351 | ) | 6,480 | ||||||||||||||||||||
Operating income before taxes (1) (3)(5) | 18,102 | 12,329 | 15,241 | 14,378 | 18,847 | 5,773 | (745 | ) | ||||||||||||||||||||
Operating income tax expense (1) (6) | 6,696 | 4,620 | 5,729 | 5,689 | 7,157 | 2,076 | (461 | ) | ||||||||||||||||||||
Operating income (1) (7) | 11,406 | 7,709 | 9,512 | 8,689 | 11,690 | 3,697 | (284 | ) | ||||||||||||||||||||
Loss share termination, net of tax benefit | — | (8,921 | ) | — | — | — | 8,921 | — | ||||||||||||||||||||
Severance costs, net of tax benefit | (1,847 | ) | (272 | ) | (224 | ) | (916 | ) | (49 | ) | (1,575 | ) | (1,798 | ) | ||||||||||||||
Merger-related expenses, net of tax benefit | (440 | ) | (537 | ) | (84 | ) | (188 | ) | (137 | ) | 97 | (303 | ) | |||||||||||||||
Net income (loss) available to common shareholders | $ | 9,119 | $ | (2,021 | ) | $ | 9,204 | $ | 7,585 | $ | 11,504 | $ | 11,140 | $ | (2,385 | ) | ||||||||||||
Common Share Data | ||||||||||||||||||||||||||||
Basic net income (loss) per share | $ | .26 | $ | (.06 | ) | $ | .27 | $ | .24 | $ | .36 | $ | .32 | $ | (.10 | ) | ||||||||||||
Diluted net income (loss) per share | .25 | (.06 | ) | .26 | .23 | .35 | .31 | (.10 | ) | |||||||||||||||||||
Cash dividends declared per share | .07 | .06 | .05 | .04 | .04 | .01 | .03 | |||||||||||||||||||||
Book value per share | 14.88 | 14.62 | 14.81 | 14.38 | 14.20 | .26 | .68 | |||||||||||||||||||||
Tangible book value per share (1) | 13.78 | 13.51 | 13.70 | 13.97 | 13.83 | .27 | (.05 | ) | ||||||||||||||||||||
Market price per share (quarter end) | 20.68 | 21.70 | 21.00 | 19.98 | 16.24 | (1.02 | ) | 4.44 | ||||||||||||||||||||
Common Shares Outstanding | ||||||||||||||||||||||||||||
Common stock | 35,753,855 | 35,763,791 | 35,738,850 | 32,269,604 | 32,271,466 | (9,936 | ) | 3,482,389 | ||||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||||
Basic | 34,687,354 | 34,654,689 | 33,593,687 | 31,794,828 | 31,723,875 | 32,665 | 2,963,479 | |||||||||||||||||||||
Diluted (8) | 37,068,387 | 34,654,689 | 35,642,302 | 33,462,979 | 33,253,907 | 2,413,698 | 3,814,480 | |||||||||||||||||||||
Average Balance Sheet Highlights | ||||||||||||||||||||||||||||
Loans | $ | 2,136,746 | $ | 2,099,798 | $ | 1,986,008 | $ | 1,645,013 | $ | 1,461,326 | $ | 36,948 | $ | 675,420 | ||||||||||||||
Assets | 3,344,023 | 3,316,424 | 3,323,713 | 2,858,209 | 2,609,776 | 27,599 | 734,247 | |||||||||||||||||||||
Deposits | 2,766,314 | 2,746,818 | 2,716,084 | 2,339,566 | 2,125,659 | 19,496 | 640,655 | |||||||||||||||||||||
Liabilities | 48,211 | 44,347 | 82,361 | 57,506 | 35,135 | 3,864 | 13,076 | |||||||||||||||||||||
Equity | 529,498 | 525,259 | 525,268 | 461,137 | 448,982 | 4,239 | 80,516 | |||||||||||||||||||||
Tangible common equity | 489,757 | 485,337 | 485,087 | 447,641 | 437,038 | 4,420 | 52,719 | |||||||||||||||||||||
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State Bank Financial Corporation | |||||||||||||||||||||
3Q15 Financial Supplement: Table 1 (continued) | |||||||||||||||||||||
Condensed Consolidated Financial Summary Results | |||||||||||||||||||||
Quarterly (Unaudited) | |||||||||||||||||||||
3Q15 change vs | |||||||||||||||||||||
(Dollars in thousands, except per share amounts; taxable equivalent) | 3Q15 | 2Q15 | 1Q15 | 4Q14 | 3Q14 | 2Q15 | 3Q14 | ||||||||||||||
Key Metrics (2) | |||||||||||||||||||||
Operating return on average assets (7) | 1.35 | % | .93 | % | 1.16 | % | 1.21 | % | 1.78 | % | .42 | % | (.43 | )% | |||||||
Operating return on average equity (7) | 8.55 | 5.89 | 7.34 | 7.48 | 10.33 | 2.66 | (1.78 | ) | |||||||||||||
Return on average assets | 1.08 | (.24 | ) | 1.12 | 1.05 | 1.75 | 1.32 | (.67 | ) | ||||||||||||
Return on average equity | 6.83 | (1.54 | ) | 7.11 | 6.53 | 10.17 | 8.37 | (3.34 | ) | ||||||||||||
Yield on earning assets | 4.98 | 4.58 | 5.37 | 5.08 | 6.44 | .40 | (1.46 | ) | |||||||||||||
Cost of funds | .28 | .29 | .29 | .33 | .35 | (.01 | ) | (.07 | ) | ||||||||||||
Rate on interest-bearing liabilities | .40 | .39 | .38 | .43 | .45 | .01 | (.05 | ) | |||||||||||||
Net interest margin | 4.73 | 4.33 | 5.11 | 4.80 | 6.13 | .40 | (1.40 | ) | |||||||||||||
Net interest margin excluding accretion income (9) | 3.52 | 3.45 | 3.22 | 2.96 | 2.99 | .07 | .53 | ||||||||||||||
Average equity to average assets (1) | 15.83 | 15.84 | 15.80 | 16.13 | 17.20 | (.01 | ) | (1.37 | ) | ||||||||||||
Leverage ratio | 15.04 | 14.92 | 15.00 | 15.90 | 17.16 | .12 | (2.12 | ) | |||||||||||||
Tier I risk-based capital ratio | 18.64 | 19.12 | 19.51 | 23.12 | 25.17 | (.48 | ) | (6.53 | ) | ||||||||||||
Total risk-based capital ratio | 19.73 | 20.28 | 20.70 | 24.37 | 26.42 | (.55 | ) | (6.69 | ) | ||||||||||||
Operating efficiency ratio (1) (3) (5) | 61.66 | 70.79 | 61.61 | 60.66 | 53.55 | — | — | ||||||||||||||
Average loans to average deposits | 77.24 | 76.44 | 73.12 | 70.31 | 68.75 | .80 | 8.49 | ||||||||||||||
Noninterest-bearing deposits to total deposits | 29.45 | 27.85 | 24.91 | 24.14 | 24.33 | 1.60 | 5.12 | ||||||||||||||
(1) Non-GAAP financial measure. See Condensed Operating Results to GAAP Earnings Reconciliation (Table 8) for further information.
(2) Income statement ratios and yield/rate information are annualized for the applicable period.
(3) Excludes the one-time loss share expense termination charge of $14.6 million in the second quarter of 2015.
(4) Includes all line items of noninterest income other than (amortization) accretion of FDIC receivable for loss share agreements.
(5) Excludes severance costs and merger-related expenses.
(6) Excludes the taxable equivalent adjustments on interest income and the income tax benefit relating to the one-time loss share expense termination charge, severance costs and merger-related expense.
(7) Excludes the one-time loss share expense termination charge, severance costs and merger-related expense, net of the income tax benefit.
(8) 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.
(9) Excludes accretion income on loans and average purchased credit impaired loans.
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State Bank Financial Corporation | ||||||||||||||||||||||||||||
3Q15 Financial Supplement: Table 2 | ||||||||||||||||||||||||||||
Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||||||
Quarterly (Unaudited) | ||||||||||||||||||||||||||||
3Q15 change vs | ||||||||||||||||||||||||||||
(Dollars in thousands) | 3Q15 | 2Q15 | 1Q15 | 4Q14 | 3Q14 | 2Q15 | 3Q14 | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Cash and amounts due from depository institutions | $ | 15,734 | $ | 21,903 | $ | 20,426 | $ | 10,550 | $ | 17,209 | $ | (6,169 | ) | $ | (1,475 | ) | ||||||||||||
Interest-bearing deposits in other financial institutions | 153,937 | 179,831 | 285,971 | 470,608 | 459,271 | (25,894 | ) | (305,334 | ) | |||||||||||||||||||
Cash and cash equivalents | 169,671 | 201,734 | 306,397 | 481,158 | 476,480 | (32,063 | ) | (306,809 | ) | |||||||||||||||||||
Investment securities available-for-sale | 831,548 | 815,277 | 819,609 | 640,086 | 532,447 | 16,271 | 299,101 | |||||||||||||||||||||
Loans | 2,139,691 | 2,042,186 | 2,000,189 | 1,634,529 | 1,504,725 | 97,505 | 634,966 | |||||||||||||||||||||
Allowance for loan and lease losses (1) | (28,930 | ) | (29,569 | ) | (29,982 | ) | (28,638 | ) | (27,231 | ) | 639 | (1,699 | ) | |||||||||||||||
Loans, net | 2,110,761 | 2,012,617 | 1,970,207 | 1,605,891 | 1,477,494 | 98,144 | 633,267 | |||||||||||||||||||||
Loans held-for-sale | 59,563 | 64,047 | 45,211 | 3,174 | 1,283 | (4,484 | ) | 58,280 | ||||||||||||||||||||
Other real estate owned | 11,363 | 15,055 | 16,848 | 8,568 | 15,169 | (3,692 | ) | (3,806 | ) | |||||||||||||||||||
Premises and equipment, net | 43,982 | 45,608 | 46,370 | 35,286 | 34,696 | (1,626 | ) | 9,286 | ||||||||||||||||||||
Goodwill | 31,049 | 31,049 | 30,510 | 10,606 | 10,381 | — | 20,668 | |||||||||||||||||||||
Other intangibles, net | 8,486 | 8,922 | 9,045 | 2,752 | 1,511 | (436 | ) | 6,975 | ||||||||||||||||||||
SBA servicing rights | 2,463 | 2,185 | 1,902 | 1,516 | — | 278 | 2,463 | |||||||||||||||||||||
FDIC receivable for loss share agreements | — | — | 17,098 | 22,320 | 26,221 | — | (26,221 | ) | ||||||||||||||||||||
Bank-owned life insurance | 58,347 | 57,810 | 57,348 | 41,479 | 41,136 | 537 | 17,211 | |||||||||||||||||||||
Other assets | 61,440 | 46,004 | 31,363 | 29,374 | 30,779 | 15,436 | 30,661 | |||||||||||||||||||||
Total assets | $ | 3,388,673 | $ | 3,300,308 | $ | 3,351,908 | $ | 2,882,210 | $ | 2,647,597 | $ | 88,365 | $ | 741,076 | ||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 823,146 | $ | 762,100 | $ | 691,938 | $ | 577,295 | $ | 524,634 | $ | 61,046 | $ | 298,512 | ||||||||||||||
Interest-bearing deposits | 1,972,042 | 1,974,185 | 2,085,997 | 1,814,387 | 1,631,340 | (2,143 | ) | 340,702 | ||||||||||||||||||||
Total deposits | 2,795,188 | 2,736,285 | 2,777,935 | 2,391,682 | 2,155,974 | 58,903 | 639,214 | |||||||||||||||||||||
Securities sold under agreements to repurchase | 4,872 | 11,747 | 8,250 | — | — | (6,875 | ) | 4,872 | ||||||||||||||||||||
Notes payable | 2,761 | 2,765 | 2,769 | 2,771 | 2,776 | (4 | ) | (15 | ) | |||||||||||||||||||
Other liabilities | 53,691 | 26,527 | 33,708 | 23,662 | 30,570 | 27,164 | 23,121 | |||||||||||||||||||||
Total liabilities | 2,856,512 | 2,777,324 | 2,822,662 | 2,418,115 | 2,189,320 | 79,188 | 667,192 | |||||||||||||||||||||
Total shareholders’ equity | 532,161 | 522,984 | 529,246 | 464,095 | 458,277 | 9,177 | 73,884 | |||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,388,673 | $ | 3,300,308 | $ | 3,351,908 | $ | 2,882,210 | $ | 2,647,597 | $ | 88,365 | $ | 741,076 | ||||||||||||||
Capital Ratios (2) | ||||||||||||||||||||||||||||
Average equity to average assets | 15.83 | % | 15.84 | % | 15.80 | % | 16.13 | % | 17.20 | % | (.01 | )% | (1.37 | )% | ||||||||||||||
Leverage ratio | 15.04 | 14.92 | 15.00 | 15.90 | 17.16 | .12 | (2.12 | ) | ||||||||||||||||||||
CET1 risk-based capital ratio | 18.64 | 19.12 | 19.51 | N/A | N/A | (.48 | ) | N/A | ||||||||||||||||||||
Tier I risk-based capital ratio | 18.64 | 19.12 | 19.51 | 23.12 | 25.17 | (.48 | ) | (6.53 | ) | |||||||||||||||||||
Total risk-based capital ratio | 19.73 | 20.28 | 20.70 | 24.37 | 26.42 | (.55 | ) | (6.69 | ) | |||||||||||||||||||
(1) Allowance for loan losses on purchased credit impaired loans was approximately $8.8 million at 3Q15, $10.0 million at 2Q15, $10.6 million at 1Q15, $10.2 million at 4Q14 and $8.4 million at 3Q14.
(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.
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State Bank Financial Corporation | ||||||||||||||||||||||||||||
3Q15 Financial Supplement: Table 3 | ||||||||||||||||||||||||||||
Condensed Consolidated Income Statements | ||||||||||||||||||||||||||||
Quarterly (Unaudited) | ||||||||||||||||||||||||||||
3Q15 change vs | ||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | 3Q15 | 2Q15 | 1Q15 | 4Q14 | 3Q14 | 2Q15 | 3Q14 | |||||||||||||||||||||
Net Interest Income: | ||||||||||||||||||||||||||||
Interest income on loans | $ | 24,218 | $ | 23,070 | $ | 21,400 | $ | 17,416 | $ | 16,162 | $ | 1,148 | $ | 8,056 | ||||||||||||||
Accretion income on loans | 11,156 | 8,365 | 16,069 | 14,124 | 21,110 | 2,791 | (9,954 | ) | ||||||||||||||||||||
Interest income on invested funds | 4,050 | 4,032 | 3,602 | 2,928 | 2,545 | 18 | 1,505 | |||||||||||||||||||||
Interest expense | 1,977 | 1,972 | 1,979 | 1,923 | 1,857 | 5 | 120 | |||||||||||||||||||||
Net interest income | 37,447 | 33,495 | 39,092 | 32,545 | 37,960 | 3,952 | (513 | ) | ||||||||||||||||||||
Provision for loan and lease losses | (265 | ) | 64 | 3,193 | 1,189 | 416 | (329 | ) | (681 | ) | ||||||||||||||||||
Net interest income after provision for loan and lease losses | 37,712 | 33,431 | 35,899 | 31,356 | 37,544 | 4,281 | 168 | |||||||||||||||||||||
Noninterest Income: | ||||||||||||||||||||||||||||
(Amortization) accretion of FDIC receivable for loss share agreements | — | (15,040 | ) | (1,448 | ) | 1,652 | (196 | ) | 15,040 | 196 | ||||||||||||||||||
Service charges on deposits | 1,491 | 1,501 | 1,489 | 1,274 | 1,206 | (10 | ) | 285 | ||||||||||||||||||||
Mortgage banking income | 3,079 | 3,480 | 2,680 | 322 | 191 | (401 | ) | 2,888 | ||||||||||||||||||||
Payroll fee income | 1,004 | 956 | 1,158 | 1,050 | 875 | 48 | 129 | |||||||||||||||||||||
SBA income | 1,720 | 1,380 | 1,123 | 477 | — | 340 | 1,720 | |||||||||||||||||||||
ATM income | 742 | 773 | 725 | 624 | 621 | (31 | ) | 121 | ||||||||||||||||||||
Bank-owned life insurance income | 537 | 462 | 455 | 343 | 333 | 75 | 204 | |||||||||||||||||||||
Gain (loss) on sale of investment securities | 17 | (59 | ) | 380 | 223 | — | 76 | 17 | ||||||||||||||||||||
Other | 304 | 826 | 2,240 | 972 | 398 | (522 | ) | (94 | ) | |||||||||||||||||||
Total noninterest income | 8,894 | (5,721 | ) | 8,802 | 6,937 | 3,428 | 14,615 | 5,466 | ||||||||||||||||||||
Noninterest Expense: | ||||||||||||||||||||||||||||
Salaries and employee benefits | 23,293 | 20,506 | 19,582 | 17,797 | 14,644 | 2,787 | 8,649 | |||||||||||||||||||||
Occupancy and equipment | 3,113 | 3,219 | 3,105 | 2,615 | 2,440 | (106 | ) | 673 | ||||||||||||||||||||
Data processing | 2,097 | 2,435 | 2,280 | 1,909 | 1,758 | (338 | ) | 339 | ||||||||||||||||||||
Legal and professional fees | 1,144 | 1,284 | 1,484 | 844 | 851 | (140 | ) | 293 | ||||||||||||||||||||
Merger-related expenses | 717 | 876 | 137 | 306 | 223 | (159 | ) | 494 | ||||||||||||||||||||
Marketing | 491 | 599 | 436 | 491 | 453 | (108 | ) | 38 | ||||||||||||||||||||
Federal deposit insurance premiums and other regulatory fees | 621 | 455 | 506 | 393 | 356 | 166 | 265 | |||||||||||||||||||||
Loan collection and OREO costs | (1,198 | ) | (114 | ) | 405 | (112 | ) | — | (1,084 | ) | (1,198 | ) | ||||||||||||||||
Amortization of intangibles | 436 | 442 | 417 | 257 | 152 | (6 | ) | 284 | ||||||||||||||||||||
Other | 1,702 | 1,655 | 1,735 | 1,299 | 1,633 | 47 | 69 | |||||||||||||||||||||
Total noninterest expense | 32,416 | 31,357 | 30,087 | 25,799 | 22,510 | 1,059 | 9,906 | |||||||||||||||||||||
Income (Loss) Before Income Taxes | 14,190 | (3,647 | ) | 14,614 | 12,494 | 18,462 | 17,837 | (4,272 | ) | |||||||||||||||||||
Income tax expense (benefit) | 5,071 | (1,626 | ) | 5,410 | 4,909 | 6,958 | 6,697 | (1,887 | ) | |||||||||||||||||||
Net Income (Loss) | $ | 9,119 | $ | (2,021 | ) | $ | 9,204 | $ | 7,585 | $ | 11,504 | $ | 11,140 | $ | (2,385 | ) | ||||||||||||
Net Income (Loss) Per Share | ||||||||||||||||||||||||||||
Basic | $ | .26 | $ | (.06 | ) | $ | .27 | $ | .24 | $ | .36 | $ | .32 | $ | (.10 | ) | ||||||||||||
Diluted | .25 | (.06 | ) | .26 | .23 | .35 | .31 | (.10 | ) | |||||||||||||||||||
Weighted Average Shares Outstanding | ||||||||||||||||||||||||||||
Basic | 34,687,354 | 34,654,689 | 33,593,687 | 31,794,828 | 31,723,875 | 32,665 | 2,963,479 | |||||||||||||||||||||
Diluted | 37,068,387 | 34,654,689 | 35,642,302 | 33,462,979 | 33,253,907 | 2,413,698 | 3,814,480 | |||||||||||||||||||||
8
State Bank Financial Corporation | ||||||||||||
3Q15 Financial Supplement: Table 4 | ||||||||||||
Condensed Consolidated Income Statements | ||||||||||||
Year to Date (Unaudited) | ||||||||||||
Nine Months Ended September 30 | YTD Change | |||||||||||
(Dollars in thousands, except per share amounts) | 2015 | 2014 | ||||||||||
Net Interest Income: | ||||||||||||
Interest income on loans | $ | 68,688 | $ | 46,760 | $ | 21,928 | ||||||
Accretion income on loans | 35,590 | 64,733 | (29,143 | ) | ||||||||
Interest income on invested funds | 11,684 | 7,560 | 4,124 | |||||||||
Interest expense | 5,928 | 5,597 | 331 | |||||||||
Net interest income | 110,034 | 113,456 | (3,422 | ) | ||||||||
Provision for loan and lease losses | 2,992 | 1,707 | 1,285 | |||||||||
Net interest income after provision for loan and lease losses | 107,042 | 111,749 | (4,707 | ) | ||||||||
Noninterest Income: | ||||||||||||
Amortization of FDIC receivable for loss share agreements | (16,488 | ) | (17,437 | ) | 949 | |||||||
Service charges on deposits | 4,481 | 3,560 | 921 | |||||||||
Mortgage banking income | 9,239 | 513 | 8,726 | |||||||||
Payroll fee income | 3,118 | 2,650 | 468 | |||||||||
SBA income | 4,223 | — | 4,223 | |||||||||
ATM income | 2,240 | 1,847 | 393 | |||||||||
Bank-owned life insurance income | 1,454 | 991 | 463 | |||||||||
Gain on sale of investment securities | 338 | 23 | 315 | |||||||||
Other | 3,370 | 518 | 2,852 | |||||||||
Total noninterest income | 11,975 | (7,335 | ) | 19,310 | ||||||||
Noninterest Expense: | ||||||||||||
Salaries and employee benefits | 63,381 | 44,296 | 19,085 | |||||||||
Occupancy and equipment | 9,437 | 7,283 | 2,154 | |||||||||
Data processing | 6,812 | 5,144 | 1,668 | |||||||||
Legal and professional fees | 3,912 | 2,596 | 1,316 | |||||||||
Merger-related expenses | 1,730 | 488 | 1,242 | |||||||||
Marketing | 1,526 | 1,333 | 193 | |||||||||
Federal deposit insurance premiums and other regulatory fees | 1,582 | 1,027 | 555 | |||||||||
Loan collection and OREO costs | (907 | ) | 592 | (1,499 | ) | |||||||
Amortization of intangibles | 1,295 | 475 | 820 | |||||||||
Other | 5,092 | 4,435 | 657 | |||||||||
Total noninterest expense | 93,860 | 67,669 | 26,191 | |||||||||
Income Before Income Taxes | 25,157 | 36,745 | (11,588 | ) | ||||||||
Income tax expense | 8,855 | 13,412 | (4,557 | ) | ||||||||
Net Income | $ | 16,302 | $ | 23,333 | $ | (7,031 | ) | |||||
Net Income Per Share | ||||||||||||
Basic | $ | .48 | $ | .74 | $ | (.26 | ) | |||||
Diluted | .45 | .70 | (.25 | ) | ||||||||
Weighted Average Shares Outstanding | ||||||||||||
Basic | 34,315,916 | 31,700,092 | 2,615,824 | |||||||||
Diluted | 36,594,476 | 33,214,953 | 3,379,523 | |||||||||
9
State Bank Financial Corporation | ||||||||||||||||||||||||||||
3Q15 Financial Supplement: Table 5 | ||||||||||||||||||||||||||||
Condensed Consolidated Composition of Loans and Deposits at Period Ends | ||||||||||||||||||||||||||||
Quarterly (Unaudited) | ||||||||||||||||||||||||||||
3Q15 change vs | ||||||||||||||||||||||||||||
(Dollars in thousands) | 3Q15 | 2Q15 | 1Q15 | 4Q14 | 3Q14 | 2Q15 | 3Q14 | |||||||||||||||||||||
Composition of Loans | ||||||||||||||||||||||||||||
Organic loans (1): | ||||||||||||||||||||||||||||
Construction, land & land development | $ | 412,788 | $ | 399,982 | $ | 388,148 | $ | 310,987 | $ | 324,008 | $ | 12,806 | $ | 88,780 | ||||||||||||||
Other commercial real estate | 705,616 | 634,943 | 606,347 | 609,478 | 591,672 | 70,673 | 113,944 | |||||||||||||||||||||
Total commercial real estate | 1,118,404 | 1,034,925 | 994,495 | 920,465 | 915,680 | 83,479 | 202,724 | |||||||||||||||||||||
Residential real estate | 127,823 | 118,612 | 107,554 | 91,448 | 80,231 | 9,211 | 47,592 | |||||||||||||||||||||
Owner-occupied real estate | 212,171 | 205,805 | 191,557 | 188,933 | 164,514 | 6,366 | 47,657 | |||||||||||||||||||||
Commercial, financial & agricultural | 165,305 | 126,157 | 108,929 | 90,930 | 102,417 | 39,148 | 62,888 | |||||||||||||||||||||
Leases | 54,814 | 26,709 | 21,491 | 19,959 | 19,636 | 28,105 | 35,178 | |||||||||||||||||||||
Consumer | 16,432 | 12,078 | 9,442 | 8,658 | 9,445 | 4,354 | 6,987 | |||||||||||||||||||||
Total organic loans | 1,694,949 | 1,524,286 | 1,433,468 | 1,320,393 | 1,291,923 | 170,663 | 403,026 | |||||||||||||||||||||
Purchased non-credit impaired loans(2): | ||||||||||||||||||||||||||||
Construction, land & land development | 37,326 | 61,089 | 67,129 | 2,166 | — | (23,763 | ) | 37,326 | ||||||||||||||||||||
Other commercial real estate | 79,878 | 91,212 | 94,917 | 26,793 | — | (11,334 | ) | 79,878 | ||||||||||||||||||||
Total commercial real estate | 117,204 | 152,301 | 162,046 | 28,959 | — | (35,097 | ) | 117,204 | ||||||||||||||||||||
Residential real estate | 75,987 | 82,668 | 88,871 | 43,669 | — | (6,681 | ) | 75,987 | ||||||||||||||||||||
Owner-occupied real estate | 69,619 | 73,409 | 77,946 | 22,743 | — | (3,790 | ) | 69,619 | ||||||||||||||||||||
Commercial, financial & agricultural | 19,529 | 28,656 | 42,494 | 11,635 | — | (9,127 | ) | 19,529 | ||||||||||||||||||||
Consumer | 3,080 | 3,505 | 4,517 | 791 | — | (425 | ) | 3,080 | ||||||||||||||||||||
Total purchased non-credit impaired loans | 285,419 | 340,539 | 375,874 | 107,797 | — | (55,120 | ) | 285,419 | ||||||||||||||||||||
Purchased credit impaired loans (3): | ||||||||||||||||||||||||||||
Construction, land & land development | 16,473 | 20,002 | 18,791 | 24,544 | 25,463 | (3,529 | ) | (8,990 | ) | |||||||||||||||||||
Other commercial real estate | 42,637 | 48,187 | 54,211 | 58,680 | 54,573 | (5,550 | ) | (11,936 | ) | |||||||||||||||||||
Total commercial real estate | 59,110 | 68,189 | 73,002 | 83,224 | 80,036 | (9,079 | ) | (20,926 | ) | |||||||||||||||||||
Residential real estate | 67,218 | 70,537 | 74,876 | 78,793 | 80,859 | (3,319 | ) | (13,641 | ) | |||||||||||||||||||
Owner-occupied real estate | 30,655 | 35,036 | 39,210 | 42,168 | 48,834 | (4,381 | ) | (18,179 | ) | |||||||||||||||||||
Commercial, financial & agricultural | 2,132 | 3,234 | 3,427 | 1,953 | 2,790 | (1,102 | ) | (658 | ) | |||||||||||||||||||
Consumer | 208 | 365 | 332 | 201 | 283 | (157 | ) | (75 | ) | |||||||||||||||||||
Total purchased credit impaired loans | 159,323 | 177,361 | 190,847 | 206,339 | 212,802 | (18,038 | ) | (53,479 | ) | |||||||||||||||||||
Total loans | $ | 2,139,691 | $ | 2,042,186 | $ | 2,000,189 | $ | 1,634,529 | $ | 1,504,725 | $ | 97,505 | $ | 634,966 | ||||||||||||||
Composition of Deposits | ||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 823,146 | $ | 762,100 | $ | 691,938 | $ | 577,295 | $ | 524,634 | $ | 61,046 | $ | 298,512 | ||||||||||||||
Interest-bearing transaction accounts | 499,434 | 497,715 | 562,378 | 495,966 | 377,220 | 1,719 | 122,214 | |||||||||||||||||||||
Savings and money market deposits | 1,059,770 | 1,038,292 | 1,052,677 | 954,626 | 910,488 | 21,478 | 149,282 | |||||||||||||||||||||
Time deposits less than $250,000 | 289,815 | 301,431 | 319,118 | 247,757 | 234,145 | (11,616 | ) | 55,670 | ||||||||||||||||||||
Time deposits $250,000 or greater | 56,750 | 59,105 | 58,076 | 18,946 | 20,418 | (2,355 | ) | 36,332 | ||||||||||||||||||||
Brokered and wholesale time deposits | 66,273 | 77,642 | 93,748 | 97,092 | 89,069 | (11,369 | ) | (22,796 | ) | |||||||||||||||||||
Total deposits | $ | 2,795,188 | $ | 2,736,285 | $ | 2,777,935 | $ | 2,391,682 | $ | 2,155,974 | $ | 58,903 | $ | 639,214 | ||||||||||||||
(1) Loans originated by State Bank and Trust Company ("State 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, including all loans acquired from the FDIC.
10
State Bank Financial Corporation | ||||||||||||||||||||||||||||
3Q15 Financial Supplement: Table 6 | ||||||||||||||||||||||||||||
Condensed Consolidated Asset Quality Data | ||||||||||||||||||||||||||||
Quarterly (Unaudited) | ||||||||||||||||||||||||||||
3Q15 change vs | ||||||||||||||||||||||||||||
(Dollars in thousands) | 3Q15 | 2Q15 | 1Q15 | 4Q14 | 3Q14 | 2Q15 | 3Q14 | |||||||||||||||||||||
Allowance for loan and lease losses on organic loans | ||||||||||||||||||||||||||||
Beginning Balance | $ | 19,594 | $ | 19,424 | $ | 18,392 | $ | 18,828 | $ | 17,885 | $ | 170 | $ | 1,709 | ||||||||||||||
Charge-offs | (63 | ) | (64 | ) | (76 | ) | (1,250 | ) | (87 | ) | 1 | 24 | ||||||||||||||||
Recoveries | 31 | 12 | 38 | 39 | 30 | 19 | 1 | |||||||||||||||||||||
Net (charge-offs) recoveries | (32 | ) | (52 | ) | (38 | ) | (1,211 | ) | (57 | ) | 20 | 25 | ||||||||||||||||
Provision for loan and lease losses | 614 | 222 | 1,070 | 775 | 1,000 | 392 | (386 | ) | ||||||||||||||||||||
Ending Balance | $ | 20,176 | $ | 19,594 | $ | 19,424 | $ | 18,392 | $ | 18,828 | $ | 582 | $ | 1,348 | ||||||||||||||
Allowance for loan and lease losses on purchased loans (1) (2) | ||||||||||||||||||||||||||||
Beginning Balance | $ | 9,975 | $ | 10,558 | $ | 10,246 | $ | 8,403 | $ | 17,722 | $ | (583 | ) | $ | (7,747 | ) | ||||||||||||
Charge-offs | (3,282 | ) | (2,201 | ) | (3,231 | ) | (898 | ) | (5,329 | ) | (1,081 | ) | 2,047 | |||||||||||||||
Recoveries | 2,940 | 1,227 | 924 | 2,410 | 2,417 | 1,713 | 523 | |||||||||||||||||||||
Net (charge-offs) recoveries | (342 | ) | (974 | ) | (2,307 | ) | 1,512 | (2,912 | ) | 632 | 2,570 | |||||||||||||||||
Provision for loan and lease losses | (879 | ) | 391 | 2,619 | 331 | (6,407 | ) | (1,270 | ) | 5,528 | ||||||||||||||||||
Ending Balance | $ | 8,754 | $ | 9,975 | $ | 10,558 | $ | 10,246 | $ | 8,403 | $ | (1,221 | ) | $ | 351 | |||||||||||||
Nonperforming organic assets | ||||||||||||||||||||||||||||
Nonaccrual loans | $ | 1,848 | $ | 1,649 | $ | 1,428 | $ | 1,245 | $ | 740 | $ | 199 | $ | 1,108 | ||||||||||||||
Troubled debt restructurings | 3,269 | 3,322 | 3,374 | 4,301 | 875 | (53 | ) | 2,394 | ||||||||||||||||||||
Total nonperforming organic loans | 5,117 | 4,971 | 4,802 | 5,546 | 1,615 | 146 | 3,502 | |||||||||||||||||||||
Other real estate owned | 500 | 160 | — | 74 | 410 | 340 | 90 | |||||||||||||||||||||
Total nonperforming organic assets | $ | 5,617 | $ | 5,131 | $ | 4,802 | $ | 5,620 | $ | 2,025 | $ | 486 | $ | 3,592 | ||||||||||||||
Ratios for organic assets | ||||||||||||||||||||||||||||
Annualized QTD charge-offs (recoveries) to average organic loans | .01 | % | .01 | % | .01 | % | .36 | % | .02 | % | — | % | (.01 | )% | ||||||||||||||
Nonperforming loans to organic loans | .30 | .33 | .33 | .42 | .13 | (.03 | ) | .17 | ||||||||||||||||||||
Nonperforming assets to organic loans + OREO | .33 | .34 | .33 | .43 | .16 | (.01 | ) | .17 | ||||||||||||||||||||
Past due loans to organic loans | .08 | .08 | .11 | .17 | .10 | — | (.02 | ) | ||||||||||||||||||||
Allowance for loan and lease losses to organic loans | 1.19 | 1.29 | 1.36 | 1.39 | 1.46 | (.10 | ) | (.27 | ) | |||||||||||||||||||
Ratios for purchased non-credit impaired loans | ||||||||||||||||||||||||||||
Annualized QTD charge-offs (recoveries) to average PNCI loans | (.01 | )% | .04 | % | — | % | — | % | N/A | (.05 | )% | N/A | ||||||||||||||||
Nonperforming loans to PNCI loans | .57 | .07 | .04 | .10 | N/A | .50 | N/A | |||||||||||||||||||||
Past due loans to PNCI loans | .64 | .49 | .36 | .46 | N/A | .15 | N/A | |||||||||||||||||||||
Ratios for purchased credit impaired loans (3) | ||||||||||||||||||||||||||||
Annualized QTD charge-offs (recoveries) to average PCI loans | .83 | % | 2.07 | % | 4.81 | % | (2.80 | )% | 5.37 | % | (1.24 | )% | (4.54 | )% | ||||||||||||||
Past due loans to PCI loans | 14.15 | 13.30 | 18.48 | 15.62 | 15.14 | .85 | (.99 | ) | ||||||||||||||||||||
Allowance for loan and lease losses to PCI loans | 5.49 | 5.62 | 5.53 | 4.97 | 3.95 | (.13 | ) | 1.54 | ||||||||||||||||||||
(1) Includes purchased non-credit impaired and purchased credit impaired activity. Net recoveries (charge-offs) for purchased non-credit impaired loans were $6,000 for 3Q15, $(46,000) for 2Q15 and $(2,000) for 2Q15 with a corresponding provision for loan and lease losses for each of the periods, 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 $0 for
3Q15, $(549,000) for 2Q15, $(496,000) for 1Q15, $83,000 for 4Q14, and $5.8 million for 3Q14.
(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.
11
State Bank Financial Corporation | ||||||||||||||||||||||||||
3Q15 Financial Supplement: Table 7 | ||||||||||||||||||||||||||
Condensed Consolidated Average Balances and Yield Analysis | ||||||||||||||||||||||||||
Quarterly (Unaudited) | ||||||||||||||||||||||||||
3Q15 change vs | ||||||||||||||||||||||||||
(Dollars in thousands) | 3Q15 | 2Q15 | 1Q15 | 4Q14 | 3Q14 | 2Q15 | 3Q14 | |||||||||||||||||||
Average Balances | ||||||||||||||||||||||||||
Interest-bearing deposits in other financial institutions | $ | 179,526 | $ | 191,653 | $ | 320,248 | $ | 450,362 | $ | 476,190 | (12,127 | ) | (296,664 | ) | ||||||||||||
Investment securities | 837,786 | 821,998 | 807,002 | 603,101 | 523,488 | 15,788 | 314,298 | |||||||||||||||||||
Loans, excluding purchased credit impaired (1) | 1,969,651 | 1,920,219 | 1,791,537 | 1,430,495 | 1,246,008 | 49,432 | 723,643 | |||||||||||||||||||
Purchased credit impaired loans | 167,095 | 179,579 | 194,471 | 214,518 | 215,318 | (12,484 | ) | (48,223 | ) | |||||||||||||||||
Total earning assets | 3,154,058 | 3,113,449 | 3,113,258 | 2,698,476 | 2,461,004 | 40,609 | 693,054 | |||||||||||||||||||
Total nonearning assets | 189,965 | 202,975 | 210,455 | 159,733 | 148,772 | (13,010 | ) | 41,193 | ||||||||||||||||||
Total assets | 3,344,023 | 3,316,424 | 3,323,713 | 2,858,209 | 2,609,776 | 27,599 | 734,247 | |||||||||||||||||||
Interest-bearing transaction accounts | 486,514 | 522,147 | 507,087 | 433,545 | 376,052 | (35,633 | ) | 110,462 | ||||||||||||||||||
Savings & money market deposits | 1,042,941 | 1,035,706 | 1,072,818 | 958,782 | 896,503 | 7,235 | 146,438 | |||||||||||||||||||
Time deposits less than $250,000 | 295,304 | 309,725 | 327,807 | 240,509 | 239,924 | (14,421 | ) | 55,380 | ||||||||||||||||||
Time deposits $250,000 or greater | 57,511 | 57,375 | 56,529 | 66,009 | 20,906 | 136 | 36,605 | |||||||||||||||||||
Brokered and wholesale time deposits | 70,004 | 82,840 | 103,464 | 86,371 | 96,743 | (12,836 | ) | (26,739 | ) | |||||||||||||||||
Other borrowings | 15,507 | 11,667 | 27,742 | 7,385 | 2,778 | 3,840 | 12,729 | |||||||||||||||||||
Total interest-bearing liabilities | 1,967,781 | 2,019,460 | 2,095,447 | 1,792,601 | 1,632,906 | (51,679 | ) | 334,875 | ||||||||||||||||||
Noninterest-bearing deposits | 814,040 | 739,025 | 648,379 | 554,350 | 495,531 | 75,015 | 318,509 | |||||||||||||||||||
Other liabilities | 32,704 | 32,680 | 54,619 | 50,121 | 32,357 | 24 | 347 | |||||||||||||||||||
Shareholders’ equity | 529,498 | 525,259 | 525,268 | 461,137 | 448,982 | 4,239 | 80,516 | |||||||||||||||||||
Total liabilities and shareholders' equity | 3,344,023 | 3,316,424 | 3,323,713 | 2,858,209 | 2,609,776 | 27,599 | 734,247 | |||||||||||||||||||
Interest Margins (2) | ||||||||||||||||||||||||||
Interest-bearing deposits in other financial institutions | .27 | % | .29 | % | .27 | % | .26 | % | .26 | % | (.02 | )% | .01 | % | ||||||||||||
Investment securities, tax-equivalent basis (3) | 1.86 | 1.90 | 1.72 | 1.73 | 1.70 | (.04 | ) | .16 | ||||||||||||||||||
Loans, excluding purchased credit impaired, tax-equivalent basis (4) | 4.91 | 4.84 | 4.87 | 4.85 | 5.17 | .07 | (.26 | ) | ||||||||||||||||||
Purchased credit impaired loans | 26.49 | 18.68 | 33.51 | 26.12 | 38.90 | 7.81 | (12.41 | ) | ||||||||||||||||||
Total earning assets | 4.98 | % | 4.58 | % | 5.37 | % | 5.08 | % | 6.44 | % | .40 | % | (1.46 | )% | ||||||||||||
Interest-bearing transaction accounts | .13 | .14 | .14 | .13 | .13 | (.01 | ) | — | ||||||||||||||||||
Savings & money market deposits | .47 | .46 | .45 | .46 | .46 | .01 | .01 | |||||||||||||||||||
Time deposits less than $250,000 | .38 | .24 | .21 | .43 | .54 | .14 | (.16 | ) | ||||||||||||||||||
Time deposits $250,000 or greater | .36 | .99 | 1.03 | .75 | .78 | (.63 | ) | (.42 | ) | |||||||||||||||||
Brokered and wholesale time deposits | .97 | .97 | .94 | 1.02 | 1.08 | — | (.11 | ) | ||||||||||||||||||
Other borrowings | 1.69 | 2.23 | .98 | 3.55 | 9.00 | (.54 | ) | (7.31 | ) | |||||||||||||||||
Total interest-bearing liabilities | .40 | % | .39 | % | .38 | % | .43 | % | .45 | % | .01 | % | (.05 | )% | ||||||||||||
Net interest spread | 4.58 | % | 4.19 | % | 4.99 | % | 4.65 | % | 5.99 | % | .39 | % | (1.41 | )% | ||||||||||||
Net interest margin | 4.73 | % | 4.33 | % | 5.11 | % | 4.80 | % | 6.13 | % | .40 | % | (1.40 | )% | ||||||||||||
Net interest margin excluding accretion income | 3.52 | % | 3.45 | % | 3.22 | % | 2.96 | % | 2.99 | % | .07 | % | .53 | % | ||||||||||||
(1) Includes average nonaccrual loans of $5.9 million for 3Q15, $4.9 million for 2Q15, $5.1 million for 1Q15, $5.6 million for 4Q14, and $1.7 million for 3Q14.
(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 3Q15, $5,000 for 2Q15, $27,000 for 1Q15, $4,000 for 4Q14, and $7,000 for 3Q14.
(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 $179,000 for 3Q15, $104,000 for 2Q15, $98,000 for 1Q15, $80,000 for 4Q14, and $75,000 for 3Q14.
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State Bank Financial Corporation | |||||||||||||||||||||||||||
3Q15 Financial Supplement: Table 8 | |||||||||||||||||||||||||||
Condensed Operating Results to GAAP Earnings Reconciliation (1) | |||||||||||||||||||||||||||
Quarterly (Unaudited) | |||||||||||||||||||||||||||
3Q15 change vs | |||||||||||||||||||||||||||
(dollars in thousands, except per share amounts; taxable equivalent) | 3Q15 | 2Q15 | 1Q15 | 4Q14 | 3Q14 | 2Q15 | 3Q14 | ||||||||||||||||||||
Interest income reconciliation | |||||||||||||||||||||||||||
Interest income - taxable equivalent | $ | 39,607 | $ | 35,576 | $ | 41,196 | $ | 34,552 | $ | 39,899 | $ | 4,031 | $ | (292 | ) | ||||||||||||
Taxable equivalent adjustment | (183 | ) | (109 | ) | (125 | ) | (84 | ) | (82 | ) | (74 | ) | (101 | ) | |||||||||||||
Interest income (GAAP) | $ | 39,424 | $ | 35,467 | $ | 41,071 | $ | 34,468 | $ | 39,817 | $ | 3,957 | $ | (393 | ) | ||||||||||||
Net interest income reconciliation | |||||||||||||||||||||||||||
Net interest income - taxable equivalent | $ | 37,630 | $ | 33,604 | $ | 39,217 | $ | 32,629 | $ | 38,042 | $ | 4,026 | $ | (412 | ) | ||||||||||||
Taxable equivalent adjustment | (183 | ) | (109 | ) | (125 | ) | (84 | ) | (82 | ) | (74 | ) | (101 | ) | |||||||||||||
Net interest income (GAAP) | $ | 37,447 | $ | 33,495 | $ | 39,092 | $ | 32,545 | $ | 37,960 | $ | 3,952 | $ | (513 | ) | ||||||||||||
Adjusted (amortization) accretion of FDIC receivable for loss share agreements | |||||||||||||||||||||||||||
Adjusted (amortization) accretion of FDIC receivable for loss share agreements | $ | — | $ | (492 | ) | $ | (1,448 | ) | $ | 1,652 | $ | (196 | ) | $ | 492 | $ | 196 | ||||||||||
Loss share termination | — | (14,548 | ) | — | — | — | 14,548 | — | |||||||||||||||||||
(Amortization) accretion of FDIC receivable for loss share agreements (GAAP) | $ | — | $ | (15,040 | ) | $ | (1,448 | ) | $ | 1,652 | $ | (196 | ) | $ | 15,040 | $ | 196 | ||||||||||
Operating noninterest income reconciliation | |||||||||||||||||||||||||||
Operating noninterest income | $ | 8,894 | $ | 8,827 | $ | 8,802 | $ | 6,937 | $ | 3,428 | $ | 67 | $ | 5,466 | |||||||||||||
Loss share termination | — | (14,548 | ) | — | — | — | 14,548 | — | |||||||||||||||||||
Total noninterest income (GAAP) | $ | 8,894 | $ | (5,721 | ) | $ | 8,802 | $ | 6,937 | $ | 3,428 | $ | 14,615 | $ | 5,466 | ||||||||||||
Operating noninterest expense reconciliation | |||||||||||||||||||||||||||
Operating noninterest expense | $ | 28,687 | $ | 30,038 | $ | 29,585 | $ | 23,999 | $ | 22,207 | $ | (1,351 | ) | $ | 6,480 | ||||||||||||
Merger-related expenses | 717 | 876 | 137 | 306 | 223 | (159 | ) | 494 | |||||||||||||||||||
Severance costs | 3,012 | 443 | 365 | 1,494 | 80 | 2,569 | 2,932 | ||||||||||||||||||||
Total noninterest expense (GAAP) | $ | 32,416 | $ | 31,357 | $ | 30,087 | $ | 25,799 | $ | 22,510 | $ | 1,059 | $ | 9,906 | |||||||||||||
Operating income before taxes reconciliation | |||||||||||||||||||||||||||
Operating income before taxes | $ | 18,102 | $ | 12,329 | $ | 15,241 | $ | 14,378 | $ | 18,847 | $ | 5,773 | $ | (745 | ) | ||||||||||||
Loss share termination | — | (14,548 | ) | — | — | — | 14,548 | — | |||||||||||||||||||
Merger-related expenses | (717 | ) | (876 | ) | (137 | ) | (306 | ) | (223 | ) | 159 | (494 | ) | ||||||||||||||
Severance costs | (3,012 | ) | (443 | ) | (365 | ) | (1,494 | ) | (80 | ) | (2,569 | ) | (2,932 | ) | |||||||||||||
Taxable equivalent adjustment to interest income | (183 | ) | (109 | ) | (125 | ) | (84 | ) | (82 | ) | (74 | ) | (101 | ) | |||||||||||||
Income (loss) before taxes (GAAP) | $ | 14,190 | $ | (3,647 | ) | 14,614 | 12,494 | $ | 18,462 | $ | 17,837 | $ | (4,272 | ) | |||||||||||||
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State Bank Financial Corporation | |||||||||||||||||||||||||||
3Q15 Financial Supplement: Table 8 (continued) | |||||||||||||||||||||||||||
Condensed Operating Results to GAAP Earnings Reconciliation (1) | |||||||||||||||||||||||||||
Quarterly (Unaudited) | |||||||||||||||||||||||||||
3Q15 change vs | |||||||||||||||||||||||||||
(dollars in thousands, except per share amounts; taxable equivalent) | 3Q15 | 2Q15 | 1Q15 | 4Q14 | 3Q14 | 2Q15 | 3Q14 | ||||||||||||||||||||
Operating income tax reconciliation | |||||||||||||||||||||||||||
Operating income tax expense | $ | 6,696 | $ | 4,620 | $ | 5,729 | $ | 5,689 | $ | 7,157 | $ | 2,076 | $ | (461 | ) | ||||||||||||
Loss share termination tax benefit | — | (5,627 | ) | — | — | — | 5,627 | — | |||||||||||||||||||
Merger-related expenses tax benefit | (277 | ) | (339 | ) | (53 | ) | (118 | ) | (86 | ) | 62 | (191 | ) | ||||||||||||||
Severance costs tax benefit | (1,165 | ) | (171 | ) | (141 | ) | (578 | ) | (31 | ) | (994 | ) | (1,134 | ) | |||||||||||||
Taxable equivalent adjustment to interest income | (183 | ) | (109 | ) | (125 | ) | (84 | ) | (82 | ) | (74 | ) | (101 | ) | |||||||||||||
Income tax expense (GAAP) | $ | 5,071 | $ | (1,626 | ) | $ | 5,410 | $ | 4,909 | $ | 6,958 | $ | 6,697 | $ | (1,887 | ) | |||||||||||
Operating income reconciliation | |||||||||||||||||||||||||||
Operating income | $ | 11,406 | $ | 7,709 | $ | 9,512 | $ | 8,689 | $ | 11,690 | $ | 3,697 | $ | (284 | ) | ||||||||||||
Loss share termination, net of tax benefit | — | (8,921 | ) | — | — | — | 8,921 | — | |||||||||||||||||||
Merger-related expenses, net of tax benefit | (440 | ) | (537 | ) | (84 | ) | (188 | ) | (137 | ) | 97 | (303 | ) | ||||||||||||||
Severance costs, net of tax benefit | (1,847 | ) | (272 | ) | (224 | ) | (916 | ) | (49 | ) | (1,575 | ) | (1,798 | ) | |||||||||||||
Net income (GAAP) | $ | 9,119 | $ | (2,021 | ) | $ | 9,204 | $ | 7,585 | $ | 11,504 | $ | 11,140 | (2,385 | ) | ||||||||||||
Book value per common share reconciliation | |||||||||||||||||||||||||||
Tangible book value per common share | $ | 13.78 | $ | 13.51 | $ | 13.70 | $ | 13.97 | $ | 13.83 | $ | 0.27 | $ | (.05 | ) | ||||||||||||
Effect of goodwill and other intangibles | 1.10 | 1.11 | 1.11 | .41 | .37 | (.01 | ) | .73 | |||||||||||||||||||
Book value per common share (GAAP) | $ | 14.88 | $ | 14.62 | $ | 14.81 | $ | 14.38 | $ | 14.20 | $ | 0.26 | $ | .68 | |||||||||||||
Average equity to average assets reconciliation | |||||||||||||||||||||||||||
Average tangible common equity to average assets | 14.63 | % | 14.63 | % | 14.59 | % | 15.66 | % | 16.75 | % | — | % | (2.12 | )% | |||||||||||||
Effect of average goodwill and other intangibles | 1.20 | 1.21 | 1.21 | .47 | .45 | (.01 | ) | .75 | |||||||||||||||||||
Average equity to average assets (GAAP) | 15.83 | % | 15.84 | % | 15.80 | % | 16.13 | % | 17.20 | % | (.01 | )% | (1.37 | )% | |||||||||||||
Efficiency ratio reconciliation | |||||||||||||||||||||||||||
Operating efficiency ratio | 61.66 | % | 70.79 | % | 61.61 | % | 60.66 | % | 53.55 | % | (9.13 | )% | 8.11 | % | |||||||||||||
Effect of tax equivalent adjustment to interest income, loss share termination, merger-related expenses, and severance costs | 8.29 | % | 42.11 | 1.21 | 4.68 | .84 | (33.82 | )% | 7.45 | % | |||||||||||||||||
Efficiency ratio (GAAP) | 69.95 | % | 112.90 | % | 62.82 | % | 65.34 | % | 54.39 | % | (42.95 | )% | 15.56 | % | |||||||||||||
(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, adjusted (amortization) accretion of FDIC receivable for loss share agreements, operating noninterest income, operating noninterest expense, operating income before taxes - taxable equivalent, operating income tax expense, tangible book value per common share and operating efficiency ratio. The Company has included these
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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.
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