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

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EX-99.2 - EXHIBIT 99.2 - STATE BANK FINANCIAL CORP	a2q16earningspresentatio.htm
8-K - 8-K - STATE BANK FINANCIAL CORP	a8kcoverpage063016.htm

Investor Relations Contact: Jeremy Lucas 404.239.8626 / jeremy.lucas@statebt.com

State Bank Financial Corporation Reports Second Quarter 2016 Financial Results


▪	Second quarter 2016 net income of $13.8 million, or $.37 per diluted share


▪	Total loans increased $87 million, or 15% annualized


▪	Continued growth in key noninterest income initiatives


▪	Announced transaction with NBG Bancorp, Inc. in April and S Bankshares, Inc. in May

ATLANTA, GA, July 28, 2016 - State Bank Financial Corporation (NASDAQ: STBZ) today announced unaudited financial results for the quarter ended June 30, 2016. Net income for the second quarter of 2016 was $13.8 million, compared to $10.8 million in the first quarter of 2016 and a net loss of $2.0 million in the second quarter of 2015 related to one-time expenses associated with the early termination of loss share agreements in May 2015. Fully diluted earnings per share were $.37 in the second quarter of 2016 compared to $.29 in the first quarter of 2016 and a fully diluted loss per share of $.06 in the second quarter of 2015.

Driven by solid loan growth during the quarter, interest income on loans improved to $25.4 million in the second quarter of 2016, a $1.1 million increase from the first quarter of 2016 and a $2.3 million increase from the second quarter of 2015. Higher accretion income on loans due to a gain from a loan pool closing and an increase in noninterest income also contributed to strong financial results in the second quarter.

Joe Evans, Chairman and CEO of State Bank Financial, commented, "We had a great second quarter with $13.8 million of net income as we continue to generate capital and increase tangible book value for shareholders. Further, we announced two bank acquisitions in the quarter that will accelerate the growth of our core earnings and add three attractive MSAs to our footprint. I am very pleased with our performance thus far in 2016 and with the positive momentum we are carrying into the second half of the year."

Operating Highlights

Net interest income of $41.7 million in the second quarter of 2016 increased from $36.6 million in the first quarter of 2016 and $33.5 million in the second quarter of 2015 primarily due to higher interest and accretion income on loans. Accretion income on loans was $14.0 million in the second quarter of 2016, up from $9.7 million in the first quarter of 2016 and $8.4 million in the second quarter of 2015. Accretion income in the second quarter of 2016 was positively impacted by a $4.1 million gain from one loan pool closing. Comparatively, there were no loan pool closings during the first quarter of 2016. As of June 30, 2016, approximately $75 million of accretable discount remains to be recognized as loan accretion income.

Tom Wiley, Vice Chairman and President, commented, "Second quarter results demonstrated continued progress executing on our strategic priorities. Strong loan growth in the second quarter was complimented by our second highest noninterest income quarter ever, driven by outstanding results from mortgage, SBA, and Altera Payroll. The team is intensely focused on serving our clients’ needs and growing these fee income lines of business, which should benefit from adding scale to our existing platform."

Noninterest income was $10.2 million in the second quarter of 2016, up from $9.4 million in the first quarter of 2016 and $9.3 million in the second quarter of 2015, excluding amortization of the FDIC receivable. Growth in our key noninterest income initiatives continued in the second quarter of 2016, with income from mortgage banking increasing $510 thousand from the previous quarter to $3.6 million and SBA lending increasing $183 thousand from the previous quarter to $1.7 million. Payroll fee income of $1.1 million increased versus the prior year period, but decreased from the previous quarter due to what is typically a seasonally strong first quarter. Gain on sale of securities totaled $396 thousand in the second quarter of 2016.

Total noninterest expense for the second quarter of 2016 was $30.7 million, a $1.8 million increase from

the first quarter of 2016, and a $683 thousand decrease from the second quarter of 2015. Salary and employee benefit costs increased $1.9 million from the previous quarter due to the addition of an SBA lending team in April, new hires in mortgage banking and Patriot Capital, higher commissions on production, and other seasonal factors. Merger-related expenses totaled $319 thousand in the second quarter of 2016.

Financial Condition

Total assets at June 30, 2016 were $3.59 billion, up from $3.53 billion at March 31, 2016. Total loans were $2.3 billion at June 30, 2016, up $86.6 million from the first quarter of 2016. Period-end organic and purchased non-credit impaired loans increased to $2.2 billion at June 30, 2016, a net increase of $91.8 million from the first quarter of 2016. Purchased credit impaired loans decreased to $134.5 million at the end of the second quarter of 2016, a $5.3 million linked-quarter decline.

Total deposits at June 30, 2016 were $2.89 billion, down from $2.91 billion at the end of the first quarter of 2016. Period-end transaction accounts, comprised of noninterest-bearing demand deposits and interest-bearing transaction accounts, decreased $69.5 million from the first quarter of 2016 as a few large depositors reduced balances related to normal operating cycles of their business. Noninterest-bearing demand deposits represented 28.8% of total deposits as of June 30, 2016. Average noninterest-bearing demand deposits decreased $14.0 million from the first quarter of 2016.

The organic loan portfolio continued to perform well in the second quarter of 2016 as past due organic

loans represented .18% of total organic loans. Net charge-offs were $2.3 million during the quarter, almost entirely related to one loan that was classified and assigned a specific reserve of $2.2 million in the first quarter of 2016. The allowance as a percent of loans declined nine basis points to 1.10% at the end of the second quarter of 2016 and covers organic nonperforming assets by over three times.

Tangible book value per share was $13.77 at the end of the second quarter of 2016. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 14.56% and a Tier I risk-based capital ratio of 16.68%.

Recent Transactions

On April 5, 2016, State Bank Financial announced the signing of a definitive agreement to acquire NBG Bancorp, Inc. and its wholly-owned subsidiary, The National Bank of Georgia, in a cash and stock transaction with a purchase price of approximately $68 million. At June 30, 2016, The National Bank of Georgia had assets of approximately $417 million, loans of approximately $342 million, deposits of approximately $322 million, a branch and mortgage office in Athens, and a branch office in Gainesville, Georgia. At a special meeting held on July 25, 2016, NBG Bancorp, Inc. received shareholder approval for the transaction. The completion of the transaction is subject to receipt of regulatory approvals and satisfaction of other customary closing conditions.

On May 19, 2016, State Bank Financial announced the signing of a definitive agreement to acquire S Bankshares, Inc. and its wholly-owned subsidiary, S Bank, in a cash and stock transaction with a purchase price of approximately $11 million. At June 30, 2016, S Bank had assets of approximately $109 million, loans of approximately $82 million, and deposits of approximately $91 million. S Bank has banking operations in Savannah, Glennville, Reidsville, and Hinesville, Georgia. The completion of the transaction is subject to receipt of regulatory approvals and satisfaction of other customary closing conditions, including approval of S Bankshares shareholders.

Detailed Results

Supplemental tables displaying financial results for the second quarter of 2016, the previous four quarters and the first half of 2016 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 2Q16 Financial Supplement: Table 8, Reconciliation of Non-GAAP Measures.

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: 1.800.686.5266

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 $3.6 billion in assets as of June 30, 2016, is an Atlanta-based bank holding company for State Bank and Trust Company. State Bank

operates 25 full-service 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 in this press release and other information that we make publicly available from time to time are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “intend,” “plan,” “seek,” “believe,” “expect,” “strategy,” “future,” “likely,” “project,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements regarding our belief that we have positive momentum to carry us into the second half of 2016, statements regarding our proposed mergers with NBG Bancorp, Inc. and S Bankshares, Inc., including our belief that these acquisitions will accelerate our core earnings and add attractive MSAs to our footprint, statements regarding our fee income lines of business, including that they should benefit from adding scale to our existing platform, and other statements regarding our strategic initiatives. Such forward-looking statements are subject to risks, uncertainties, and other factors, including a downturn in the economy, the inability to obtain the requisite regulatory approvals for the proposed transactions with NBG Bancorp and/or S Bankshares and the requisite shareholder approval for the proposed transaction with S Bankshares and meet other closing terms and conditions for each transaction, the reaction to the transactions of each bank’s customers, employees and counterparties, or difficulties related to the transition of services, volatile credit and financial markets both domestic and foreign, potential deterioration in real estate values, regulatory changes and excessive loan losses, as well as additional risks and uncertainties contained in the “Risk Factors” and forward-looking statements disclosure contained in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, 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.

Additional Information About the Mergers and Where to Find It

Proposed Merger with NBG Bancorp, Inc.

In connection with the proposed merger transaction with NBG Bancorp, Inc., State Bank Financial has filed a registration statement on Form S-4 (Registration Statement No. 333-211445) that includes a joint proxy statement/prospectus. The SEC declared the registration statement effective on June 15, 2016. A definitive proxy statement/prospectus dated June 15, 2016 was mailed on or about June 20, 2016 to the shareholders of NBG Bancorp, Inc. The registration statement and the proxy statement/prospectus filed with the SEC related to the proposed transaction contains important information about State Bank Financial, NBG Bancorp, Inc. and the proposed transaction and related matters. WE URGE SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT, PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS FILED WITH OR THAT MAY BE FILED WITH THE SEC IN CONNECTION WITH THE TRANSACTION OR INCORPORATED BY REFERENCE INTO THE

REGISTRATION STATEMENT AND PROXY STATEMENT/PROSPECTUS BECAUSE THOSE DOCUMENTS CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION. Security holders may obtain free copies of these documents and other documents filed with the SEC on the SEC’s website at http://www.sec.gov. Security holders may also obtain free copies of the documents filed with the SEC by State Bank Financial at its website at https://www.statebt.com (which website is not incorporated herein by reference) or by contacting Jeremy Lucas by telephone at 404.239.8626.

State Bank Financial and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of NBG Bancorp, Inc. in connection with the proposed merger. Information regarding these persons who may, under the rules of the SEC, be considered participants in the solicitation of shareholders in connection with the proposed merger are provided in the proxy statement/prospectus described above. Additional information regarding State Bank Financial’s directors and executive officers is included in State Bank Financial’s definitive proxy statement for 2016, which was filed with the SEC on April 15, 2016. You can obtain free copies of this document from State Bank Financial using the contact information above.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.

Proposed Merger with S Bankshares, Inc.

In connection with the proposed merger transaction with S Bankshares, Inc., State Bank Financial will file a registration statement on Form S-4 with the SEC to register State Bank Financial’s shares that will be issued to S Bankshares, Inc. shareholders in connection with the transaction. The registration statement will include a proxy statement of S Bankshares, Inc. and a prospectus of State Bank Financial, as well as other relevant documents concerning the proposed transaction. The registration statement and the proxy statement/prospectus to be filed with the SEC related to the proposed transaction will contain important information about State Bank Financial, S Bankshares, Inc. and the proposed transaction and related matters. WE URGE SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT AND PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE TRANSACTION OR INCORPORATED BY REFERENCE INTO THE REGISTRATION STATEMENT AND PROXY STATEMENT/PROSPECTUS BECAUSE THOSE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION. Security holders may obtain free copies of these documents and other documents filed with the SEC on the SEC’s website at http://www.sec.gov. Security holders may also obtain free copies of the documents filed with the SEC by State Bank Financial at its website at https://www.statebt.com (which website is not incorporated herein by reference) or by contacting Jeremy Lucas by telephone at 404.239.8626.

State Bank Financial and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of S Bankshares, Inc. in connection with the proposed merger. Information regarding these persons who may, under the rules of the SEC, be considered participants in the solicitation of shareholders in connection with the proposed merger will be provided in the proxy statement/prospectus described above when it is filed with the SEC. Additional information regarding State Bank Financial’s directors and executive officers is included in State Bank Financial’s definitive proxy statement for 2016, which was filed with the SEC on April 15, 2016. You can obtain free copies of this document from State Bank Financial using the contact information above.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.



State Bank Financial Corporation
2Q16 Financial Supplement: Table 1
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
														2Q16 change vs
(Dollars in thousands, except per share amounts)	2Q16		1Q16			4Q15		3Q15			2Q15			1Q16			2Q15

Income Statement Highlights
Interest income on loans	$	25,406	$	24,342		$	24,250	$	24,218		$	23,070		$	1,064		$	2,336
Accretion income on loans	13,961		9,743			14,240		11,156			8,365			4,218			5,596
Interest income on invested funds	4,726		4,673			4,139		4,050			4,032			53			694
Total interest income	44,093		38,758			42,629		39,424			35,467			5,335			8,626
Interest expense	2,371		2,113			1,994		1,977			1,972			258			399
Net interest income	41,722		36,645			40,635		37,447			33,495			5,077			8,227
Provision for loan and lease losses	6		(134		)	494		(265		)	64			140			(58		)
Amortization of FDIC receivable for loss share agreements	—		—			—		—			(15,040		)	—			15,040
Other noninterest income (1)	10,230		9,391			8,136		8,894			9,319			839			911
Total noninterest income	10,230		9,391			8,136		8,894			(5,721		)	839			15,951
Total noninterest expense	30,674		28,898			29,562		32,416			31,357			1,776			(683		)
Income before income taxes	21,272		17,272			18,715		14,190			(3,647		)	4,000			24,919
Income tax expense	7,433		6,434			6,594		5,071			(1,626		)	999			9,059
Net income (loss) available to common shareholders	$	13,839	$	10,838		$	12,121	$	9,119		$	(2,021	)	$	3,001		$	15,860

Common Share Data
Basic net income (loss) per share	$	.38	$	.29		$	.33	$	.26		$	(.06	)	$	.09		$	.44
Diluted net income (loss) per share	.37		.29			.33		.25			(.06		)	.08			.43
Cash dividends declared per share	.14		.14			.14		.07			.06			—			.08
Book value per share	15.00		14.73			14.47		14.88			14.62			.27			.38
Tangible book value per share (2)	13.77		13.49			13.22		13.78			13.51			.28			.26
Market price per share (quarter end)	20.35		19.76			21.03		20.68			21.70			.59			(1.35		)

Common Shares Outstanding
Common stock	36,894,641		37,052,008			37,077,848		35,753,855			35,763,791			(157,367		)	1,130,850
Weighted average shares outstanding:
Basic	35,822,654		36,092,269			35,208,607		34,687,354			34,654,689			(269,615		)	1,167,965
Diluted (3)	35,923,691		36,187,662			36,140,474		36,003,068			34,654,689			(263,971		)	1,269,002

Average Balance Sheet Highlights
Loans	$	2,326,666	$	2,250,518		$	2,203,993	$	2,136,746		$	2,099,798		$	76,148		$	226,868
Assets	3,524,231		3,476,646			3,455,342		3,344,023			3,316,424			47,585			207,807
Deposits	2,873,019		2,854,514			2,842,788		2,766,314			2,746,818			18,505			126,201
Equity	546,838		542,444			534,702		529,498			525,259			4,394			21,579
Tangible common equity	501,221		496,287			491,346		489,757			485,337			4,934			15,884



State Bank Financial Corporation
2Q16 Financial Supplement: Table 1 (continued)
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
							2Q16 change vs
(Dollars in thousands, except per share amounts)	2Q16	1Q16	4Q15	3Q15	2Q15		1Q16		2Q15

Key Metrics (4)
Return on average assets	1.58	1.25	1.39	1.08	(.24	)	.33		1.82
Return on average equity	10.18	8.04	8.99	6.83	(1.54	)	2.14		11.72
Yield on earning assets	5.37	4.79	5.23	4.98	4.58		.58		.79
Cost of funds	.33	.29	.28	.28	.29		.04		.04
Rate on interest-bearing liabilities	.46	.42	.39	.40	.39		.04		.07
Net interest margin	5.08	4.53	4.99	4.73	4.33		.55		.75
Net interest margin excluding accretion income (5)	3.53	3.48	3.40	3.52	3.45		.05		.08
Average tangible equity to average tangible assets (2)	14.41	14.47	14.40	14.82	14.81		(.06	)	(.40	)
Leverage ratio (6)	14.56	14.59	14.48	14.93	14.92		(.03	)	(.36	)
Tier I risk-based capital ratio (6)	16.68	17.09	17.71	18.20	19.12		(.41	)	(2.44	)
Total risk-based capital ratio (6)	17.59	18.13	18.75	19.28	20.28		(.54	)	(2.69	)
Efficiency ratio (7)	59.04	62.77	60.61	69.95	112.90		(3.73	)	(53.86	)
Average loans to average deposits	80.98	78.84	77.53	77.24	76.44		2.14		4.54
Noninterest-bearing deposits to total deposits	28.75	30.68	28.87	29.45	27.85		(1.93	)	.90


(1)	Includes all line items of noninterest income other than amortization of FDIC receivable for loss share agreements.

(2) Denotes a non-GAAP financial measure. See Reconciliation of Non-GAAP Measures (Table 8) for further information.

(3) Because we 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.

(4) Income statement ratios and yield/rate information are annualized for the applicable period.

(5) Excludes accretion income on loans and average purchased credit impaired loans.

(6) Current period capital ratios are estimated as of the date of this earnings release.

(7) Noninterest expenses divided by net interest income plus noninterest income.



State Bank Financial Corporation
2Q16 Financial Supplement: Table 2
Condensed Consolidated Balance Sheets
Quarterly (Unaudited)
																2Q16 change vs
(Dollars in thousands)	2Q16			1Q16			4Q15			3Q15			2Q15			1Q16			2Q15

Assets
Cash and amounts due from depository institutions	$	11,964		$	14,398		$	12,175		$	15,734		$	21,903		$	(2,434	)	$	(9,939	)
Interest-bearing deposits in other financial institutions	70,603			102,355			163,187			153,937			179,831			(31,752		)	(109,228		)
Cash and cash equivalents	82,567			116,753			175,362			169,671			201,734			(34,186		)	(119,167		)
Investment securities available-for-sale	824,980			849,576			887,705			831,548			815,277			(24,596		)	9,703
Investment securities held-to-maturity	63,080			60,591			—			—			—			2,489			63,080
Loans	2,345,096			2,258,533			2,160,217			2,139,691			2,042,186			86,563			302,910
Allowance for loan and lease losses	(27,599		)	(30,345		)	(29,075		)	(28,930		)	(29,569		)	2,746			1,970
Loans, net	2,317,497			2,228,188			2,131,142			2,110,761			2,012,617			89,309			304,880
Loans held-for-sale	71,302			55,219			54,933			59,563			64,047			16,083			7,255
Other real estate owned	11,578			11,590			10,530			11,363			15,055			(12		)	(3,477		)
Premises and equipment, net	42,153			42,802			42,980			43,982			45,608			(649		)	(3,455		)
Goodwill	36,357			36,357			36,357			31,049			31,049			—			5,308
Other intangibles, net	9,029			9,556			10,101			8,486			8,922			(527		)	107
SBA servicing rights	3,165			2,882			2,626			2,463			2,185			283			980
Bank-owned life insurance	59,749			59,281			58,819			58,347			57,810			468			1,939
Other assets	65,046			60,176			59,512			61,440			46,004			4,870			19,042
Total assets	$	3,586,503		$	3,532,971		$	3,470,067		$	3,388,673		$	3,300,308		$	53,532		$	286,195
Liabilities and Shareholders’ Equity
Noninterest-bearing deposits	$	829,673		$	891,511		$	826,216		$	823,146		$	762,100		$	(61,838	)	$	67,573
Interest-bearing deposits	2,055,817			2,014,087			2,035,746			1,972,042			1,974,185			41,730			81,632
Total deposits	2,885,490			2,905,598			2,861,962			2,795,188			2,736,285			(20,108		)	149,205
Securities sold under agreements to repurchase	33,923			33,503			32,179			4,872			11,747			420			22,176
FHLB borrowings	62,000			—			—			—			—			62,000			62,000
Notes payable	398			1,808			1,812			2,761			2,765			(1,410		)	(2,367		)
Other liabilities	51,336			46,207			37,624			53,691			26,527			5,129			24,809
Total liabilities	3,033,147			2,987,116			2,933,577			2,856,512			2,777,324			46,031			255,823
Total shareholders’ equity	553,356			545,855			536,490			532,161			522,984			7,501			30,372
Total liabilities and shareholders’ equity	$	3,586,503		$	3,532,971		$	3,470,067		$	3,388,673		$	3,300,308		$	53,532		$	286,195

Capital Ratios (1)
Average equity to average assets	15.52		%	15.60		%	15.47		%	15.83		%	15.84		%	(.08		)%	(.32		)%
Leverage ratio	14.56			14.59			14.48			14.93			14.92			(.03		)	(.36		)
CET1 risk-based capital ratio	16.68			17.09			17.71			18.20			19.12			(.41		)	(2.44		)
Tier I risk-based capital ratio	16.68			17.09			17.71			18.20			19.12			(.41		)	(2.44		)
Total risk-based capital ratio	17.59			18.13			18.75			19.28			20.28			(.54		)	(2.69		)

(1) Current period capital ratios are estimated as of the date of this earning release.



State Bank Financial Corporation
2Q16 Financial Supplement: Table 3
Condensed Consolidated Income Statements
Quarterly (Unaudited)
																2Q16 change vs
(Dollars in thousands, except per share amounts)	2Q16			1Q16			4Q15			3Q15			2Q15			1Q16			2Q15

Net Interest Income:
Interest income on loans	$	25,406		$	24,342		$	24,250		$	24,218		$	23,070		$	1,064		$	2,336
Accretion income on loans	13,961			9,743			14,240			11,156			8,365			4,218			5,596
Interest income on invested funds	4,726			4,673			4,139			4,050			4,032			53			694
Interest expense	2,371			2,113			1,994			1,977			1,972			258			399
Net interest income	41,722			36,645			40,635			37,447			33,495			5,077			8,227
Provision for loan and lease losses	6			(134		)	494			(265		)	64			140			(58		)
Net interest income after provision for loan and lease losses	41,716			36,779			40,141			37,712			33,431			4,937			8,285
Noninterest Income:
Amortization of FDIC receivable for loss share agreements	—			—			—			—			(15,040		)	—			15,040
Service charges on deposits	1,352			1,386			1,495			1,491			1,501			(34		)	(149		)
Mortgage banking income	3,551			3,041			2,011			3,079			3,480			510			71
Payroll fee income	1,111			1,327			1,165			1,004			956			(216		)	155
SBA income	1,685			1,502			1,316			1,720			1,380			183			305
ATM income	769			745			741			742			773			24			(4		)
Bank-owned life insurance income	468			462			472			537			462			6			6
Gain (loss) on sale of investment securities	396			13			16			17			(59		)	383			455
Other	898			915			920			304			826			(17		)	72
Total noninterest income	10,230			9,391			8,136			8,894			(5,721		)	839			15,951
Noninterest Expense:
Salaries and employee benefits	20,662			18,760			19,914			23,293			20,506			1,902			156
Occupancy and equipment	3,015			3,101			2,995			3,113			3,219			(86		)	(204		)
Data processing	2,211			2,075			2,378			2,097			2,435			136			(224		)
Legal and professional fees	976			953			1,091			1,089			1,284			23			(308		)
Merger-related expenses	319			—			—			717			876			319			(557		)
Marketing	619			502			792			491			599			117			20
Federal deposit insurance premiums and other regulatory fees	553			562			518			621			455			(9		)	98
Loan collection and OREO costs	(96		)	485			(690		)	(1,198		)	(114		)	(581		)	18
Amortization of intangibles	528			545			509			436			442			(17		)	86
Other	1,887			1,915			2,055			1,757			1,655			(28		)	232
Total noninterest expense	30,674			28,898			29,562			32,416			31,357			1,776			(683		)
Income (Loss) Before Income Taxes	21,272			17,272			18,715			14,190			(3,647		)	4,000			24,919
Income tax expense (benefit)	7,433			6,434			6,594			5,071			(1,626		)	999			9,059
Net Income (Loss)	$	13,839		$	10,838		$	12,121		$	9,119		$	(2,021	)	$	3,001		$	15,860

Net Income (Loss) Per Share
Basic	$	.38		$	.29		$	.33		$	.26		$	(.06	)	$	.09		$	.44
Diluted	.37			.29			.33			.25			(.06		)	.08			.43
Weighted Average Shares Outstanding
Basic	35,822,654			36,092,269			35,208,607			34,687,354			34,654,689			(269,615		)	1,167,965
Diluted	35,923,691			36,187,662			36,140,474			36,003,068			34,654,689			(263,971		)	1,269,002



State Bank Financial Corporation
2Q16 Financial Supplement: Table 4
Condensed Consolidated Income Statements
Year to Date (Unaudited)
	Six Months Ended June 30						Change
(Dollars in thousands, except per share amounts)	2016			2015			Change

Net Interest Income:
Interest income on loans	$	49,748		$	44,470		$	5,278
Accretion income on loans	23,704			24,434			(730		)
Interest income on invested funds	9,399			7,634			1,765
Interest expense	4,484			3,951			533
Net interest income	78,367			72,587			5,780
Provision for loan and lease losses	(128		)	3,257			(3,385		)
Net interest income after provision for loan and lease losses	78,495			69,330			9,165
Noninterest Income:
Amortization of FDIC receivable for loss share agreements	—			(16,488		)	16,488
Service charges on deposits	2,738			2,990			(252		)
Mortgage banking income	6,592			6,160			432
Payroll fee income	2,438			2,114			324
SBA income	3,187			2,503			684
ATM income	1,514			1,498			16
Bank-owned life insurance income	930			917			13
Gain on sale of investment securities	409			321			88
Other	1,813			3,066			(1,253		)
Total noninterest income	19,621			3,081			16,540
Noninterest Expense:
Salaries and employee benefits	39,422			40,088			(666		)
Occupancy and equipment	6,116			6,324			(208		)
Data processing	4,286			4,715			(429		)
Legal and professional fees	1,929			2,768			(839		)
Merger-related expenses	319			1,013			(694		)
Marketing	1,121			1,035			86
Federal deposit insurance premiums and other regulatory fees	1,115			961			154
Loan collection and OREO costs	389			291			98
Amortization of intangibles	1,073			859			214
Other	3,802			3,390			412
Total noninterest expense	59,572			61,444			(1,872		)
Income Before Income Taxes	38,544			10,967			27,577
Income tax expense	13,867			3,784			10,083
Net Income	$	24,677		$	7,183		$	17,494

Net Income Per Share
Basic	$	.67		$	.20		$	.47
Diluted	.67			.19			.48
Weighted Average Shares Outstanding
Basic	35,979,436			34,655,661			1,323,775
Diluted	36,077,820			35,976,989			100,831



State Bank Financial Corporation
2Q16 Financial Supplement: Table 5
Condensed Consolidated Composition of Loans and Deposits at Period Ends
Quarterly (Unaudited)
											2Q16 change vs
(Dollars in thousands)	2Q16		1Q16		4Q15		3Q15		2Q15		1Q16			2Q15

Composition of Loans
Organic loans (1):
Construction, land & land development	$	470,672	$	452,654	$	482,087	$	412,788	$	399,982	$	18,018		$	70,690
Other commercial real estate	748,949		719,340		661,062		705,616		634,943		29,609			114,006
Total commercial real estate	1,219,621		1,171,994		1,143,149		1,118,404		1,034,925		47,627			184,696
Residential real estate	139,832		140,493		140,613		127,823		118,612		(661		)	21,220
Owner-occupied real estate	238,059		222,347		219,636		212,171		205,805		15,712			32,254
Commercial, financial & agricultural	290,245		233,169		181,513		165,305		126,157		57,076			164,088
Leases	82,977		93,490		71,539		54,814		26,709		(10,513		)	56,268
Consumer	34,124		33,847		17,882		16,432		12,078		277			22,046
Total organic loans	2,004,858		1,895,340		1,774,332		1,694,949		1,524,286		109,518			480,572
Purchased non-credit impaired loans(2):
Construction, land & land development	11,427		13,959		18,598		37,326		61,089		(2,532		)	(49,662		)
Other commercial real estate	64,665		70,444		74,506		79,878		91,212		(5,779		)	(26,547		)
Total commercial real estate	76,092		84,403		93,104		117,204		152,301		(8,311		)	(76,209		)
Residential real estate	60,100		65,948		69,053		75,987		82,668		(5,848		)	(22,568		)
Owner-occupied real estate	56,414		57,519		61,313		69,619		73,409		(1,105		)	(16,995		)
Commercial, financial & agricultural	11,121		13,315		14,216		19,529		28,656		(2,194		)	(17,535		)
Consumer	1,978		2,213		2,624		3,080		3,505		(235		)	(1,527		)
Total purchased non-credit impaired loans	205,705		223,398		240,310		285,419		340,539		(17,693		)	(134,834		)
Purchased credit impaired loans (3):
Construction, land & land development	13,310		13,245		14,252		16,473		20,002		65			(6,692		)
Other commercial real estate	39,218		40,119		40,742		42,637		48,187		(901		)	(8,969		)
Total commercial real estate	52,528		53,364		54,994		59,110		68,189		(836		)	(15,661		)
Residential real estate	56,887		60,579		64,011		67,218		70,537		(3,692		)	(13,650		)
Owner-occupied real estate	24,281		24,834		25,364		30,655		35,036		(553		)	(10,755		)
Commercial, financial & agricultural	722		871		1,050		2,132		3,234		(149		)	(2,512		)
Consumer	115		147		156		208		365		(32		)	(250		)
Total purchased credit impaired loans	134,533		139,795		145,575		159,323		177,361		(5,262		)	(42,828		)
Total loans	$	2,345,096	$	2,258,533	$	2,160,217	$	2,139,691	$	2,042,186	$	86,563		$	302,910
Composition of Deposits
Noninterest-bearing demand deposits	$	829,673	$	891,511	$	826,216	$	823,146	$	762,100	$	(61,838	)	$	67,573
Interest-bearing transaction accounts	531,676		539,322		588,391		499,434		497,715		(7,646		)	33,961
Savings and money market deposits	1,097,098		1,017,930		1,074,190		1,059,770		1,038,292		79,168			58,806
Time deposits less than $250,000	345,999		348,304		279,449		289,815		301,431		(2,305		)	44,568
Time deposits $250,000 or greater	63,686		64,494		41,439		56,750		59,105		(808		)	4,581
Brokered and wholesale time deposits	17,358		44,037		52,277		66,273		77,642		(26,679		)	(60,284		)
Total deposits	$	2,885,490	$	2,905,598	$	2,861,962	$	2,795,188	$	2,736,285	$	(20,108	)	$	149,205

(1) Loans originated by State Bank and Trust Company.

(2) Consists of loans purchased in our acquisitions of Bank of Atlanta and First Bank of Georgia.

(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.



State Bank Financial Corporation
2Q16 Financial Supplement: Table 6
Condensed Consolidated Asset Quality Data
Quarterly (Unaudited)
																2Q16 change vs
(Dollars in thousands)	2Q16			1Q16			4Q15			3Q15			2Q15			1Q16			2Q15

Allowance for loan and lease losses on organic loans
Beginning Balance	$	22,626		$	21,224		$	20,176		$	19,594		$	19,424		$	1,402		$	3,202
Charge-offs	(2,307		)	(240		)	(110		)	(63		)	(64		)	(2,067		)	(2,243		)
Recoveries	54			96			207			31			12			(42		)	42
Net (charge-offs) recoveries	(2,253		)	(144		)	97			(32		)	(52		)	(2,109		)	(2,201		)
Provision for loan and lease losses	1,635			1,546			951			614			222			89			1,413
Ending Balance	$	22,008		$	22,626		$	21,224		$	20,176		$	19,594		$	(618	)	$	2,414

Allowance for loan and lease losses on purchased non-credit impaired loans
Beginning Balance	$	166		$	53		$	—		$	—		$	—		$	113		$	166
Charge-offs	(1		)	(63		)	—			—			(46		)	62			45
Recoveries	28			33			1			6			—			(5		)	28
Net (charge-offs) recoveries	27			(30		)	1			6			(46		)	57			73
Provision for loan and lease losses	(35		)	143			52			(6		)	46			(178		)	(81		)
Ending Balance	$	158		$	166		$	53		$	—		$	—		$	(8	)	$	158

Allowance for loan and lease losses on purchased credit impaired loans
Beginning Balance	$	7,553		$	7,798		$	8,754		$	9,975		$	10,558		$	(245	)	$	(3,005	)
Charge-offs	(606		)	(1,516		)	(3,467		)	(3,282		)	(2,155		)	910			1,549
Recoveries	80			3,094			3,020			2,934			1,227			(3,014		)	(1,147		)
Net (charge-offs) recoveries	(526		)	1,578			(447		)	(348		)	(928		)	(2,104		)	402
Provision for loan and lease losses (1)	(1,594		)	(1,823		)	(509		)	(873		)	345			229			(1,939		)
Ending Balance	$	5,433		$	7,553		$	7,798		$	8,754		$	9,975		$	(2,120	)	$	(4,542	)

Nonperforming organic assets
Nonaccrual loans	$	6,927		$	9,416		$	5,096		$	5,117		$	4,971		$	(2,489	)	$	1,956
Total nonperforming organic loans	6,927			9,416			5,096			5,117			4,971			(2,489		)	1,956
Other real estate owned	42			33			33			500			160			9			(118		)
Total nonperforming organic assets	$	6,969		$	9,449		$	5,129		$	5,617		$	5,131		$	(2,480	)	$	1,838

Nonperforming purchased non-credit impaired assets
Nonaccrual loans	$	1,744		$	1,705		$	1,280		$	1,639		$	232		$	39		$	1,512
Accruing TDRs	—			923			577			—			—			(923		)	—
Total nonperforming PNCI loans	1,744			2,628			1,857			1,639			232			(884		)	1,512
Other real estate owned	21			22			—			—			—			(1		)	21
Total nonperforming PNCI assets	$	1,765		$	2,650		$	1,857		$	1,639		$	232		$	(885	)	$	1,533

Ratios for organic assets
Annualized QTD charge-offs (recoveries) on organic loans to average organic loans	.46		%	.03		%	(.02		)%	.01		%	.01		%	.43		%	.45		%
Nonperforming organic loans to organic loans	.35			.50			.29			.30			.33			(.15		)	.02
Nonperforming organic assets to organic loans + OREO	.35			.50			.29			.33			.34			(.15		)	.01
Past due organic loans to organic loans	.18			.47			.10			.08			.08			(.29		)	.10
Allowance for loan and lease losses on organic loans to organic loans	1.10			1.19			1.20			1.19			1.29			(.09		)	(.19		)



State Bank Financial Corporation
2Q16 Financial Supplement: Table 6 (continued)
Condensed Consolidated Asset Quality Data
Quarterly (Unaudited)
											2Q16 change vs
(Dollars in thousands)	2Q16		1Q16		4Q15		3Q15		2Q15		1Q16		2Q15

Ratios for purchased non-credit impaired loans
Annualized QTD charge-offs (recoveries) on PNCI loans to average PNCI loans	(.05	)%	.05	%	—	%	(.01	)%	.04	%	(.10	)%	(.09	)%
Nonperforming PNCI loans to PNCI loans	.85		1.18		.77		.57		.07		(.33	)	.78
Nonperforming PNCI assets to PNCI loans + OREO	.86		1.19		.77		.57		.07		(.33	)	.79
Past due PNCI loans to PNCI loans	.40		.30		.39		.64		.49		.10		(.09	)
Allowance for loan and lease losses on PNCI loans to PNCI loans	.08		.07		.02		—		—		.01		.08

Ratios for purchased credit impaired loans (2)
Annualized QTD charge-offs (recoveries) on PCI loans to average PCI loans	1.57	%	(4.50	)%	1.20	%	.83	%	2.07	%	6.07	%	(.50	)%
Past due PCI loans to PCI loans	10.92		17.90		16.64		14.15		13.30		(6.98	)	(2.38	)
Allowance for loan and lease losses on PCI loans to PCI loans	4.04		5.40		5.36		5.49		5.62		(1.36	)	(1.58	)

(1) Provision for loan and lease losses amount attributable to FDIC loss share agreements for purchased credit impaired loans was $0 for each of

2Q16, 1Q16, 4Q15, and 3Q15, and was $(549,000) for 2Q15.

(2) For each period presented, a portion of our purchased credit impaired loans were contractually past due; however, such delinquencies

were included in our 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,we do not consider purchased credit impaired loans to be nonperforming assets.



State Bank Financial Corporation
2Q16 Financial Supplement: Table 7
Condensed Consolidated Average Balances and Yield Analysis
Quarterly (Unaudited)
																2Q16 change vs
(Dollars in thousands)	2Q16			1Q16			4Q15			3Q15			2Q15			1Q16		2Q15
Average Balances
Interest-bearing deposits in other financial institutions	$	80,638		$	126,289		$	188,966		$	179,526		$	191,653		(45,651	)	(111,015	)
Investment securities	905,019			892,365			850,127			837,786			821,998			12,654		83,021
Loans, excluding purchased credit impaired (1)	2,191,506			2,109,449			2,055,933			1,969,651			1,920,219			82,057		271,287
Purchased credit impaired loans	135,160			141,069			148,060			167,095			179,579			(5,909	)	(44,419	)
Total earning assets	3,312,323			3,269,172			3,243,086			3,154,058			3,113,449			43,151		198,874
Total nonearning assets	211,908			207,474			212,256			189,965			202,975			4,434		8,933
Total assets	3,524,231			3,476,646			3,455,342			3,344,023			3,316,424			47,585		207,807
Interest-bearing transaction accounts	531,359			538,926			559,113			486,514			522,147			(7,567	)	9,212
Savings & money market deposits	1,052,106			1,036,498			1,066,783			1,042,941			1,035,706			15,608		16,400
Time deposits less than $250,000	351,883			314,950			283,276			295,304			309,725			36,933		42,158
Time deposits $250,000 or greater	64,869			53,786			50,784			57,511			57,375			11,083		7,494
Brokered and wholesale time deposits	24,471			48,039			56,298			70,004			82,840			(23,568	)	(58,369	)
Other borrowings	61,146			33,635			26,106			15,507			11,667			27,511		49,479
Total interest-bearing liabilities	2,085,834			2,025,834			2,042,360			1,967,781			2,019,460			60,000		66,374
Noninterest-bearing deposits	848,331			862,315			826,534			814,040			739,025			(13,984	)	109,306
Other liabilities	43,228			46,053			51,746			32,704			32,680			(2,825	)	10,548
Shareholders’ equity	546,838			542,444			534,702			529,498			525,259			4,394		21,579
Total liabilities and shareholders' equity	3,524,231			3,476,646			3,455,342			3,344,023			3,316,424			47,585		207,807

Interest Margins (2)
Interest-bearing deposits in other financial institutions	.33		%	.38		%	.28		%	.27		%	.29		%	(.05	)%	.04	%
Investment securities, tax-equivalent basis (3)	2.07			2.05			1.87			1.86			1.90			.02		.17
Loans, excluding purchased credit impaired, tax-equivalent basis (4)	4.68			4.67			4.71			4.91			4.84			.01		(.16	)
Purchased credit impaired loans	41.54			27.78			38.16			26.49			18.68			13.76		22.86
Total earning assets	5.37		%	4.79		%	5.23		%	4.98		%	4.58		%	.58	%	.79	%
Interest-bearing transaction accounts	.12			.12			.13			.13			.14			—		(.02	)
Savings & money market deposits	.53			.50			.48			.47			.46			.03		.07
Time deposits less than $250,000	.64			.51			.39			.38			.36			.13		.28
Time deposits $250,000 or greater	.71			.53			.33			.36			.36			.18		.35
Brokered and wholesale time deposits	1.07			1.07			1.03			.97			.97			—		.10
Other borrowings	.52			.65			.76			1.69			2.23			(.13	)	(1.71	)
Total interest-bearing liabilities	.46		%	.42		%	.39		%	.40		%	.39		%	.04	%	.07	%
Net interest spread	4.91		%	4.37		%	4.84		%	4.58		%	4.19		%	.54	%	.72	%
Net interest margin	5.08		%	4.53		%	4.99		%	4.73		%	4.33		%	.55	%	.75	%
Net interest margin excluding accretion income	3.53		%	3.48		%	3.40		%	3.52		%	3.45		%	.05	%	.08	%

(1) Includes average nonaccrual loans of $10.0 million for 2Q16, $8.9 million for 1Q16, $6.5 million for 4Q15, $5.9 million for 3Q15, and $4.9 million for 2Q15.

(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 $2,000 for 2Q16, $2,000 for 1Q16, $3,000 for 4Q15, $4,000 for 3Q15, and $5,000 for 2Q15.

(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 $113,000 for 2Q16, $165,000 for 1Q16, $134,000 for 4Q15, $179,000 for 3Q15, and $104,000 for 2Q15.



State Bank Financial Corporation
2Q16 Financial Supplement: Table 8
Reconciliation of Non-GAAP Measures (1)
Quarterly (Unaudited)

	2Q16			1Q16			4Q15			3Q15			2Q15

Book value per common share reconciliation
Tangible book value per common share	$	13.77		$	13.49		$	13.22		$	13.78		$	13.51
Effect of goodwill and other intangibles	1.23			1.24			1.25			1.10			1.11
Book value per common share (GAAP)	$	15.00		$	14.73		$	14.47		$	14.88		$	14.62

Average equity to average assets reconciliation
Average tangible equity to average tangible assets	14.41		%	14.47		%	14.40		%	14.82		%	14.81		%
Effect of average goodwill and other intangibles	1.11			1.13			1.07			1.01			1.03
Average equity to average assets (GAAP)	15.52		%	15.60		%	15.47		%	15.83		%	15.84		%

(1) Management evaluates the capital position 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: tangible book value per common share and average tangible equity to average tangible assets. 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 capital position, (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. 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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