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	a4q16earningspresentatio.htm
8-K - 8-K - STATE BANK FINANCIAL CORP	a8kcoverpage123116.htm

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

State Bank Financial Corporation Reports

Fourth Quarter and Full Year 2016 Financial Results

Full Year 2016 Highlights


▪	Record earnings of $47.6 million


▪	Return on average assets of 1.34%


▪	Completed NBG Bancorp and S Bankshares merger transactions


▪	$4.2 billion in total assets at year-end


▪	$254 million of loan growth and $156 million of deposit growth, excluding acquisitions


▪	Interest income excluding accretion increased 12%

ATLANTA, GA, January 26, 2017 - State Bank Financial Corporation (NASDAQ: STBZ) today announced unaudited financial results for the fourth quarter and full year ended December 31, 2016. Full year net income for 2016 was $47.6 million, or $1.28 per fully diluted share, compared to $28.4 million, or $.77 per fully diluted share, for full year 2015. Net income for the fourth quarter of 2016 was $10.3 million, compared to $12.4 million in the third quarter of 2016 and $12.1 million in the fourth quarter of 2015. Fully diluted earnings per share were $.28 in the fourth quarter of 2016 compared to $.34 in the third quarter of 2016 and $.33 in the fourth quarter of 2015. The fourth quarter of 2016 included $3.5 million of merger-related expenses, which reduced earnings per share by approximately $.06 in the quarter, net of tax.

Joe Evans, Chairman and CEO of State Bank Financial, commented, “2016 was a great year. We had record earnings and completed two bank acquisitions that pushed us over $4 billion in assets. We ended the year with strong momentum, and I am very optimistic about our opportunities in 2017.”

Operating Highlights

Interest income on loans improved to $26.7 million in the fourth quarter of 2016, a $116,000 increase from the third quarter of 2016 and a $2.4 million increase from the fourth quarter of 2015. Net interest income of $39.1 million in the fourth quarter of 2016 increased from $38.1 million in the third quarter of 2016 but declined from $40.6 million in the fourth quarter of 2015. Accretion income on loans of $10.3 million in the fourth quarter of 2016 was positively impacted by a $2.2 million gain from loan pool closings. Accretion income was $9.3 million in the third quarter of 2016 and $14.2 million in the fourth quarter of 2015, which included a $4.1 million gain from loan pool closings. As of December 31, 2016, approximately $69 million of accretable discount, inclusive of $4 million from The National Bank of Georgia and S Bank, remains to be recognized as loan accretion income.

Noninterest income was $9.9 million in the fourth quarter of 2016, compared to $9.8 million in the third quarter of 2016 and $8.1 million in the fourth quarter of 2015. Payroll fee income increased $235,000 in the fourth quarter of 2016 to $1.4 million, and SBA income was up $165,000 to $1.7 million in the fourth quarter of 2016. Strong quarters from payroll fee income and SBA income helped offset lower fourth quarter mortgage banking income, which declined compared to the previous quarter as a result of normal seasonality. For full year 2016, noninterest income, excluding amortization of the FDIC receivable, increased 7.4% compared to 2015, including an increase in mortgage banking income of 9.5%, SBA income of 16.6%, and payroll fee income of 15.1%.

Total noninterest expense for the fourth quarter of 2016 was $32.9 million, a $4.4 million increase from

the third quarter of 2016, and a $3.3 million increase from the fourth quarter of 2015. The fourth quarter of 2016 included $3.5 million of merger-related expenses and a decrease in net gains on OREO of $714,000 compared to the third quarter of 2016. Legal and professional fees increased $638,000 in the fourth quarter due to expenses incurred related to a support system project. Salary and benefit expenses declined $245,000 from the third quarter of 2016 and $360,000 from the fourth quarter of 2015. For full year 2016, noninterest expense, excluding merger-related expenses and the net benefit of OREO activity, declined $5.7 million, or 4.7%, compared to 2015, primarily due to a $4.5 million decline in salary and benefit expenses.

Financial Condition

Comparison of period-end balance sheet metrics for the year ended December 31, 2016, to prior periods is materially affected by the acquisitions of The National Bank of Georgia and S Bank, which were each completed on December 31, 2016. Average balance sheet metrics for the quarter and year ended December 31, 2016, are not impacted by these acquisitions.

Total assets at December 31, 2016 were $4.22 billion, up from $3.62 billion at September 30, 2016. Total loans were $2.8 billion at December 31, 2016, up $468 million from the third quarter of 2016 due to approximately $424 million of loans acquired from The National Bank of Georgia and S Bank as well as organic loan growth during the quarter.

Tom Wiley, Vice Chairman and President, commented, “It was my privilege at year-end to welcome the customers and talented bankers from The National Bank of Georgia and S Bank to State Bank. These attractive new markets represent tremendous opportunity to build upon the outstanding trajectory of our core franchise. Results for 2016 clearly demonstrate our commitment to growing low-cost core deposits, emphasizing our fee income lines of business, increasing loans without compromising our credit metrics, prudently deploying capital, and becoming a more efficient company.”

Excluding the acquisitions, organic and purchased non-credit impaired loans increased to $2.3 billion at December 31, 2016, a net increase of $49.2 million from the third quarter of 2016 and $254.1 million from the fourth quarter of 2015. Purchased credit impaired loans, excluding the acquisitions, decreased to $121.8 million at the end of the fourth quarter of 2016, a $5.0 million decrease from the previous quarter and a $23.8 million decrease from the fourth quarter of 2015.

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

loans represented .06% of total organic loans. The allowance as a percent of loans declined six basis points to 1.01% at the end of the fourth quarter of 2016 and covers organic nonperforming assets by more than three times.

Total deposits at December 31, 2016 were $3.43 billion, up $472 million from $2.96 billion at September 30, 2016, including $414 million of deposits acquired from The National Bank of Georgia and S Bank. Period-end transaction accounts, comprised of noninterest-bearing demand deposits and interest-bearing transaction accounts, increased $211 million from the third quarter of 2016 inclusive of acquisitions. Noninterest-bearing demand deposits represented 28.7% of total deposits as of December 31, 2016.

Excluding the acquisitions, period-end total deposits increased $58.8 million in the fourth quarter of 2016, as $95.3 million of growth in transaction accounts was partially offset by declines in CDs and brokered deposits. Period-end total deposits increased $156.1 million in full year 2016, excluding the acquisitions. Average total deposits increased $108.7 million from the previous quarter and $132.7 million from the fourth quarter of 2015.

Tangible book value per share was $13.48 at the end of the fourth quarter of 2016. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 14.92% and a Tier I risk-based capital ratio of 14.76%.

Detailed Results

Supplemental tables displaying financial results for the fourth quarter of 2016, the previous four quarters, and full year 2016 are included with this press release.

Non-GAAP Financial Measure

This press release contains a financial measure determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). For more information on this non-GAAP financial measure, please refer to 4Q16 Financial Supplement: Table 8, Reconciliation of Non-GAAP Measure.

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 and the year on a conference call today at 10:00 a.m. ET.

Dial in number: 1.877.311.6681

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 $4.2 billion in assets as of December 31, 2016, is an Atlanta-based bank holding company for State Bank and Trust Company. State Bank operates 31 full-service banking offices and eight mortgage origination offices in seven of Georgia’s eight largest MSAs.

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,” “anticipate,” “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 the amount of accretable discount that remains, future accretion income on loans, statements regarding our strong momentum and opportunities in 2017, our belief that our new markets will provide a tremendous opportunity for us to build on the outstanding trajectory of our core franchise, 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, 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.



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

Income Statement Highlights
Interest income on loans	$	26,696		$	26,580	$	25,406		$	24,342		$	24,250		$	116		$	2,446
Accretion income on loans	10,271			9,335		13,961			9,743			14,240			936			(3,969		)
Interest income on invested funds	4,810			4,714		4,726			4,673			4,139			96			671
Total interest income	41,777			40,629		44,093			38,758			42,629			1,148			(852		)
Interest expense	2,631			2,504		2,371			2,113			1,994			127			637
Net interest income	39,146			38,125		41,722			36,645			40,635			1,021			(1,489		)
Provision for loan and lease losses (organic & PNCI loans)	300			7		1,600			1,689			1,003			293			(703		)
Provision for loan and lease losses (purchased credit impaired loans)	(23		)	81		(1,594		)	(1,823		)	(509		)	(104		)	486
Provision for loan and lease losses	277			88		6			(134		)	494			189			(217		)
Total noninterest income	9,911			9,769		10,230			9,391			8,136			142			1,775
Total noninterest expense	32,875			28,480		30,674			28,898			29,562			4,395			3,313
Income before income taxes	15,905			19,326		21,272			17,272			18,715			(3,421		)	(2,810		)
Income tax expense	5,578			6,885		7,287			6,434			6,594			(1,307		)	(1,016		)
Net income	$	10,327		$	12,441	$	13,985		$	10,838		$	12,121		$	(2,114	)	$	(1,794	)

Common Share Data
Basic earnings per share	$	.28		$	.34	$	.38		$	.29		$	.33		$	(.06	)	$	(.05	)
Diluted earnings per share	.28			.34		.38			.29			.33			(.06		)	(.05		)
Cash dividends declared per share	.14			.14		.14			.14			.14			—			—
Book value per share	15.80			15.21		15.00			14.73			14.47			.59			1.33
Tangible book value per share (1)	13.48			13.99		13.77			13.49			13.22			(.51		)	.26
Market price per share (quarter end)	26.86			22.82		20.35			19.76			21.03			4.04			5.83

Common Shares Outstanding
Common stock	38,845,573			36,894,553		36,894,641			37,052,008			37,077,848			1,951,020			1,767,725
Weighted average shares outstanding:
Basic	35,904,009			35,863,183		35,822,654			36,092,269			35,208,607			40,826			695,402
Diluted	36,009,098			35,965,948		35,923,691			36,187,662			36,140,474			43,150			(131,376		)

Average Balance Sheet Highlights
Loans	$	2,431,512		$	2,406,629	$	2,326,666		$	2,250,518		$	2,203,993		$	24,883		$	227,519
Assets	3,636,159			3,564,470		3,524,231			3,476,646			3,455,342			71,689			180,817
Deposits	2,975,510			2,866,822		2,873,019			2,854,514			2,842,788			108,688			132,722
Equity	559,561			557,365		546,838			542,444			534,702			2,196			24,859
Tangible common equity	514,982			512,265		501,221			496,287			491,346			2,717			23,636



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

Key Metrics (2)
Return on average assets	1.13	%	1.39	%	1.60	%	1.25	%	1.39	%	(.26	)%	(.26	)%
Return on average equity	7.34		8.88		10.29		8.04		8.99		(1.54	)	(1.65	)
Yield on earning assets	4.87		4.84		5.37		4.79		5.23		.03		(.36	)
Cost of funds	.35		.34		.33		.29		.28		.01		.07
Rate on interest-bearing liabilities	.49		.47		.46		.42		.39		.02		.10
Net interest margin	4.56		4.54		5.08		4.53		4.99		.02		(.43	)
Net interest margin excluding accretion income (3)	3.50		3.57		3.53		3.48		3.40		(.07	)	.10
Leverage ratio (4)	14.92		14.64		14.56		14.59		14.48		.28		.44
Tier I risk-based capital ratio (4)	14.76		16.68		16.52		17.09		17.71		(1.92	)	(2.95	)
Total risk-based capital ratio (4)	15.51		17.56		17.42		18.13		18.75		(2.05	)	(3.24	)
Efficiency ratio (5)	67.01		59.46		59.04		62.77		60.61		7.55		6.40
Average loans to average deposits	81.72		83.95		80.98		78.84		77.53		(2.23	)	4.19
Noninterest-bearing deposits to total deposits	28.69		30.09		28.75		30.68		28.87		(1.40	)	(.18	)

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

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

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

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

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



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

Assets
Cash and amounts due from depository institutions	$	13,219		$	10,648		$	11,964		$	14,398		$	12,175		$	2,571		$	1,044
Interest-bearing deposits in other financial institutions	132,851			103,122			70,603			102,355			163,187			29,729			(30,336		)
Federal funds sold	3,523			—			—			—			—			3,523			3,523
Cash and cash equivalents	149,593			113,770			82,567			116,753			175,362			35,823			(25,769		)
Investment securities available-for-sale	847,178			822,655			824,980			849,576			887,705			24,523			(40,527		)
Investment securities held-to-maturity	67,063			67,071			63,080			60,591			—			(8		)	67,063
Loans	2,814,572			2,346,346			2,345,096			2,258,533			2,160,217			468,226			654,355
Allowance for loan and lease losses	(26,598		)	(27,177		)	(27,599		)	(30,345		)	(29,075		)	579			2,477
Loans, net	2,787,974			2,319,169			2,317,497			2,228,188			2,131,142			468,805			656,832
Loans held-for-sale	52,169			63,852			71,302			55,219			54,933			(11,683		)	(2,764		)
Other real estate owned	10,897			10,609			11,578			11,590			10,530			288			367
Premises and equipment, net	52,056			42,009			42,153			42,802			42,980			10,047			9,076
Goodwill	77,084			36,357			36,357			36,357			36,357			40,727			40,727
Other intangibles, net	12,749			8,515			9,029			9,556			10,101			4,234			2,648
SBA servicing rights	3,477			3,275			3,165			2,882			2,626			202			851
Bank-owned life insurance	65,371			60,282			59,749			59,281			58,819			5,089			6,552
Other assets	99,248			68,820			65,046			60,176			59,512			30,428			39,736
Total assets	$	4,224,859		$	3,616,384		$	3,586,503		$	3,532,971		$	3,470,067		$	608,475		$	754,792
Liabilities and Shareholders’ Equity
Noninterest-bearing deposits	$	984,419		$	890,588		$	829,673		$	891,511		$	826,216		$	93,831		$	158,203
Interest-bearing deposits	2,446,746			2,068,704			2,055,817			2,014,087			2,035,746			378,042			411,000
Total deposits	3,431,165			2,959,292			2,885,490			2,905,598			2,861,962			471,873			569,203
Federal funds purchased and securities sold under agreements to repurchase	27,673			20,124			33,923			33,503			32,179			7,549			(4,506		)
FHLB borrowings	47,014			20,000			62,000			—			—			27,014			47,014
Notes payable	398			398			398			1,808			1,812			—			(1,414		)
Other liabilities	104,976			55,436			51,336			46,207			37,624			49,540			67,352
Total liabilities	3,611,226			3,055,250			3,033,147			2,987,116			2,933,577			555,976			677,649
Total shareholders’ equity	613,633			561,134			553,356			545,855			536,490			52,499			77,143
Total liabilities and shareholders’ equity	$	4,224,859		$	3,616,384		$	3,586,503		$	3,532,971		$	3,470,067		$	608,475		$	754,792

Capital Ratios (1)
Average equity to average assets	15.39		%	15.64		%	15.52		%	15.60		%	15.47		%	(.25		)%	(.08		)%
Leverage ratio	14.92			14.64			14.56			14.59			14.48			.28			.44
CET1 risk-based capital ratio	14.76			16.68			16.52			17.09			17.71			(1.92		)	(2.95		)
Tier I risk-based capital ratio	14.76			16.68			16.52			17.09			17.71			(1.92		)	(2.95		)
Total risk-based capital ratio	15.51			17.56			17.42			18.13			18.75			(2.05		)	(3.24		)

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



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

Net Interest Income:
Interest income on loans	$	26,696		$	26,580		$	25,406		$	24,342		$	24,250		$	116		$	2,446
Accretion income on loans	10,271			9,335			13,961			9,743			14,240			936			(3,969		)
Interest income on invested funds	4,810			4,714			4,726			4,673			4,139			96			671
Interest expense	2,631			2,504			2,371			2,113			1,994			127			637
Net interest income	39,146			38,125			41,722			36,645			40,635			1,021			(1,489		)
Provision for loan and lease losses (organic & PNCI loans)	300			7			1,600			1,689			1,003			293			(703		)
Provision for loan and lease losses (purchased credit impaired loans)	(23		)	81			(1,594		)	(1,823		)	(509		)	(104		)	486
Provision for loan and lease losses	277			88			6			(134		)	494			189			(217		)
Net interest income after provision for loan and lease losses	38,869			38,037			41,716			36,779			40,141			832			(1,272		)
Noninterest Income:
Service charges on deposits	1,319			1,383			1,352			1,386			1,495			(64		)	(176		)
Mortgage banking income	2,511			3,216			3,551			3,041			2,011			(705		)	500
Payroll fee income	1,363			1,128			1,111			1,327			1,165			235			198
SBA income	1,718			1,553			1,685			1,502			1,316			165			402
ATM income	735			759			769			745			741			(24		)	(6		)
Bank-owned life insurance income	467			533			468			462			472			(66		)	(5		)
Gain on sale of investment securities	42			38			396			13			16			4			26
Other	1,756			1,159			898			915			920			597			836
Total noninterest income	9,911			9,769			10,230			9,391			8,136			142			1,775
Noninterest Expense:
Salaries and employee benefits	19,554			19,799			20,662			18,760			19,914			(245		)	(360		)
Occupancy and equipment	3,069			2,984			3,015			3,101			2,995			85			74
Data processing	2,131			2,097			2,211			2,075			2,378			34			(247		)
Legal and professional fees	1,702			1,064			976			953			1,091			638			611
Merger-related expenses	3,507			135			319			—			—			3,372			3,507
Marketing	430			665			619			502			792			(235		)	(362		)
Federal deposit insurance premiums and other regulatory fees	188			441			553			562			518			(253		)	(330		)
Loan collection costs and OREO activity	(127		)	(841		)	(96		)	485			(690		)	714			563
Amortization of intangibles	516			513			528			545			509			3			7
Other	1,905			1,623			1,887			1,915			2,055			282			(150		)
Total noninterest expense	32,875			28,480			30,674			28,898			29,562			4,395			3,313
Income Before Income Taxes	15,905			19,326			21,272			17,272			18,715			(3,421		)	(2,810		)
Income tax expense	5,578			6,885			7,287			6,434			6,594			(1,307		)	(1,016		)
Net Income	$	10,327		$	12,441		$	13,985		$	10,838		$	12,121		$	(2,114	)	$	(1,794	)

Net income allocated to participating securities	$	282		$	348		$	408		$	285		$	349		$	(66	)	$	(67	)
Net income allocated to common shareholders	10,045			12,093			13,577			10,553			11,772			(2,048		)	(1,727		)
Earnings Per Share
Basic	$	.28		$	.34		$	.38		$	.29		$	.33		$	(.06	)	$	(.05	)
Diluted	.28			.34			.38			.29			.33			(.06		)	(.05		)
Weighted Average Shares Outstanding
Basic	35,904,009			35,863,183			35,822,654			36,092,269			35,208,607			40,826			695,402
Diluted	36,009,098			35,965,948			35,923,691			36,187,662			36,140,474			43,150			(131,376		)



State Bank Financial Corporation
4Q16 Financial Supplement: Table 4
Condensed Consolidated Income Statements
Year to Date (Unaudited)
	Years Ended December 31						Change
(Dollars in thousands, except per share amounts)	2016			2015			Change

Net Interest Income:
Interest income on loans	$	103,024		$	92,938		$	10,086
Accretion income on loans	43,310			49,830			(6,520		)
Interest income on invested funds	18,923			15,823			3,100
Interest expense	9,619			7,922			1,697
Net interest income	155,638			150,669			4,969
Provision for loan and lease losses (organic & PNCI loans)	3,596			2,951			645
Provision for loan and lease losses (purchased credit impaired loans)	(3,359		)	535			(3,894		)
Provision for loan and lease losses	237			3,486			(3,249		)
Net interest income after provision for loan and lease losses	155,401			147,183			8,218
Noninterest Income:
Amortization of FDIC receivable for loss share agreements	—			(16,488		)	16,488
Service charges on deposits	5,440			5,976			(536		)
Mortgage banking income	12,319			11,250			1,069
Payroll fee income	4,929			4,283			646
SBA income	6,458			5,539			919
ATM income	3,008			2,981			27
Bank-owned life insurance income	1,930			1,926			4
Gain on sale of investment securities	489			354			135
Other	4,728			4,290			438
Total noninterest income	39,301			20,111			19,190
Noninterest Expense:
Salaries and employee benefits	78,775			83,295			(4,520		)
Occupancy and equipment	12,169			12,432			(263		)
Data processing	8,514			9,190			(676		)
Legal and professional fees	4,695			4,948			(253		)
Merger-related expenses	3,961			1,730			2,231
Marketing	2,216			2,318			(102		)
Federal deposit insurance premiums and other regulatory fees	1,744			2,100			(356		)
Loan collection costs and OREO activity	(579		)	(1,597		)	1,018
Amortization of intangibles	2,102			1,804			298
Other	7,330			7,202			128
Total noninterest expense	120,927			123,422			(2,495		)
Income Before Income Taxes	73,775			43,872			29,903
Income tax expense	26,184			15,449			10,735
Net Income	$	47,591		$	28,423		$	19,168

Net income allocated to participating securities	$	1,303		$	783		$	520
Net income allocated to common shareholders	46,288			27,640			18,648

Earnings Per Share
Basic	$	1.29		$	.79		$	.50
Diluted	1.28			.77			.51
Weighted Average Shares Outstanding
Basic	35,931,528			34,810,855			1,120,673
Diluted	36,033,643			36,042,719			(9,076		)



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

Composition of Loans
Organic loans (1):
Construction, land & land development	$	500,018	$	486,299	$	470,672	$	452,654	$	482,087	$	13,719		$	17,931
Other commercial real estate	754,790		744,270		748,949		719,340		661,062		10,520			93,728
Total commercial real estate	1,254,808		1,230,569		1,219,621		1,171,994		1,143,149		24,239			111,659
Residential real estate	144,295		139,926		139,832		140,493		140,613		4,369			3,682
Owner-occupied real estate	256,317		239,726		238,059		222,347		219,636		16,591			36,681
Commercial, financial & agricultural	327,381		306,141		290,245		233,169		181,513		21,240			145,868
Leases	71,724		74,722		82,977		93,490		71,539		(2,998		)	185
Consumer	36,039		39,373		34,124		33,847		17,882		(3,334		)	18,157
Total organic loans	2,090,564		2,030,457		2,004,858		1,895,340		1,774,332		60,107			316,232
Purchased non-credit impaired loans(2):
Construction, land & land development	51,208		10,035		11,427		13,959		18,598		41,173			32,610
Other commercial real estate	209,531		58,261		64,665		70,444		74,506		151,270			135,025
Total commercial real estate	260,739		68,296		76,092		84,403		93,104		192,443			167,635
Residential real estate	144,596		56,468		60,100		65,948		69,053		88,128			75,543
Owner-occupied real estate	115,566		52,016		56,414		57,519		61,313		63,550			54,253
Commercial, financial & agricultural	36,206		10,447		11,121		13,315		14,216		25,759			21,990
Consumer	6,255		1,826		1,978		2,213		2,624		4,429			3,631
Total purchased non-credit impaired loans	563,362		189,053		205,705		223,398		240,310		374,309			323,052
Purchased credit impaired loans (3):
Construction, land & land development	16,537		11,564		13,310		13,245		14,252		4,973			2,285
Other commercial real estate	60,742		38,238		39,218		40,119		40,742		22,504			20,000
Total commercial real estate	77,279		49,802		52,528		53,364		54,994		27,477			22,285
Residential real estate	54,507		53,953		56,887		60,579		64,011		554			(9,504		)
Owner-occupied real estate	23,980		22,389		24,281		24,834		25,364		1,591			(1,384		)
Commercial, financial & agricultural	4,533		608		722		871		1,050		3,925			3,483
Consumer	347		84		115		147		156		263			191
Total purchased credit impaired loans	160,646		126,836		134,533		139,795		145,575		33,810			15,071
Total loans	$	2,814,572	$	2,346,346	$	2,345,096	$	2,258,533	$	2,160,217	$	468,226		$	654,355
Composition of Deposits
Noninterest-bearing demand deposits	$	984,419	$	890,588	$	829,673	$	891,511	$	826,216	$	93,831		$	158,203
Interest-bearing transaction accounts	664,350		547,078		531,676		539,322		588,391		117,272			75,959
Savings and money market deposits	1,292,867		1,101,458		1,097,098		1,017,930		1,074,190		191,409			218,677
Time deposits less than $250,000	387,410		332,873		345,999		348,304		279,449		54,537			107,961
Time deposits $250,000 or greater	79,439		57,556		63,686		64,494		41,439		21,883			38,000
Brokered and wholesale time deposits	22,680		29,739		17,358		44,037		52,277		(7,059		)	(29,597		)
Total deposits	$	3,431,165	$	2,959,292	$	2,885,490	$	2,905,598	$	2,861,962	$	471,873		$	569,203

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

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

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

Allowance for loan and lease losses on organic loans
Beginning Balance	$	21,736		$	22,008		$	22,626		$	21,224		$	20,176		$	(272	)	$	1,560
Charge-offs	(553		)	(311		)	(2,307		)	(240		)	(110		)	(242		)	(443		)
Recoveries	34			39			54			96			207			(5		)	(173		)
Net (charge-offs) recoveries	(519		)	(272		)	(2,253		)	(144		)	97			(247		)	(616		)
Provision for loan and lease losses	(131		)	—			1,635			1,546			951			(131		)	(1,082		)
Ending Balance	$	21,086		$	21,736		$	22,008		$	22,626		$	21,224		$	(650	)	$	(138	)

Allowance for loan and lease losses on purchased non-credit impaired loans
Beginning Balance	$	150		$	158		$	166		$	53		$	—		$	(8	)	$	150
Charge-offs	(143		)	(16		)	(1		)	(63		)	—			(127		)	(143		)
Recoveries	1			1			28			33			1			—			—
Net (charge-offs) recoveries	(142		)	(15		)	27			(30		)	1			(127		)	(143		)
Provision for loan and lease losses	431			7			(35		)	143			52			424			379
Ending Balance	$	439		$	150		$	158		$	166		$	53		$	289		$	386

Allowance for loan and lease losses on purchased credit impaired loans
Beginning Balance	$	5,291		$	5,433		$	7,553		$	7,798		$	8,754		$	(142	)	$	(3,463	)
Charge-offs	(195		)	(223		)	(606		)	(1,516		)	(3,467		)	28			3,272
Recoveries	—			—			80			3,094			3,020			—			(3,020		)
Net (charge-offs) recoveries	(195		)	(223		)	(526		)	1,578			(447		)	28			252
Provision for loan and lease losses	(23		)	81			(1,594		)	(1,823		)	(509		)	(104		)	486
Ending Balance	$	5,073		$	5,291		$	5,433		$	7,553		$	7,798		$	(218	)	$	(2,725	)

Nonperforming organic assets
Nonaccrual loans	$	6,234		$	6,423		$	6,927		$	9,416		$	5,096		$	(189	)	$	1,138
Total nonperforming organic loans	6,234			6,423			6,927			9,416			5,096			(189		)	1,138
Other real estate owned	282			83			42			33			33			199			249
Total nonperforming organic assets	$	6,516		$	6,506		$	6,969		$	9,449		$	5,129		$	10		$	1,387

Nonperforming purchased non-credit impaired assets
Nonaccrual loans	$	3,381		$	1,672		$	1,744		$	1,705		$	1,280		$	1,709		$	2,101
Accruing TDRs	—			—			—			923			577			—			(577		)
Total nonperforming PNCI loans	3,381			1,672			1,744			2,628			1,857			1,709			1,524
Other real estate owned	—			21			21			22			—			(21		)	—
Total nonperforming PNCI assets	$	3,381		$	1,693		$	1,765		$	2,650		$	1,857		$	1,688		$	1,524

Ratios for organic assets
Annualized QTD charge-offs (recoveries) on organic loans to average organic loans	.10		%	.05		%	.47		%	.03		%	(.02		)%	.05		%	.12		%
Nonperforming organic loans to organic loans	.30			.32			.35			.50			.29			(.02		)	.01
Nonperforming organic assets to organic loans + OREO	.31			.32			.35			.50			.29			(.01		)	.02
Past due organic loans to organic loans	.06			.09			.18			.47			.10			(.03		)	(.04		)
Allowance for loan and lease losses on organic loans to organic loans	1.01			1.07			1.10			1.19			1.20			(.06		)	(.19		)



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

Ratios for purchased non-credit impaired loans
Annualized QTD charge-offs (recoveries) on PNCI loans to average PNCI loans	.31	%	.03	%	(.05	)%	.05	%	—	%	.28	%	.31	%
Nonperforming PNCI loans to PNCI loans	.60		.88		.85		1.18		.77		(.28	)	(.17	)
Nonperforming PNCI assets to PNCI loans + OREO	.60		.90		.86		1.19		.77		(.30	)	(.17	)
Past due PNCI loans to PNCI loans	.68		.41		.40		.30		.39		.27		.29
Allowance for loan and lease losses on PNCI loans to PNCI loans	.08		.08		.08		.07		.02		—		.06

Ratios for purchased credit impaired loans (1)
Annualized QTD charge-offs (recoveries) on PCI loans to average PCI loans	.63	%	.68	%	1.57	%	(4.50	)%	1.20	%	(.05	)%	(.57	)%
Past due PCI loans to PCI loans	8.92		11.00		10.92		17.90		16.64		(2.08	)	(7.72	)
Allowance for loan and lease losses on PCI loans to PCI loans	3.16		4.17		4.04		5.40		5.36		(1.01	)	(2.20	)

(1) 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
4Q16 Financial Supplement: Table 7
Condensed Consolidated Average Balances and Yield Analysis
Quarterly (Unaudited)
																4Q16 change vs
(Dollars in thousands)	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16			4Q15
Average Balances
Interest-bearing deposits in other financial institutions	$	82,797		$	63,315		$	80,638		$	126,289		$	188,966		$	19,482		$	(106,169	)
Investment securities	911,025			881,642			905,019			892,365			850,127			29,383			60,898
Loans, excluding purchased credit impaired (1)	2,307,794			2,275,859			2,191,506			2,109,449			2,055,933			31,935			251,861
Purchased credit impaired loans	123,718			130,770			135,160			141,069			148,060			(7,052		)	(24,342		)
Total earning assets	3,425,334			3,351,586			3,312,323			3,269,172			3,243,086			73,748			182,248
Total nonearning assets	210,825			212,884			211,908			207,474			212,256			(2,059		)	(1,431		)
Total assets	3,636,159			3,564,470			3,524,231			3,476,646			3,455,342			71,689			180,817
Interest-bearing transaction accounts	575,977			515,974			531,359			538,926			559,113			60,003			16,864
Savings & money market deposits	1,118,548			1,105,635			1,052,106			1,036,498			1,066,783			12,913			51,765
Time deposits less than $250,000	325,838			340,275			351,883			314,950			283,276			(14,437		)	42,562
Time deposits $250,000 or greater	59,308			61,172			64,869			53,786			50,784			(1,864		)	8,524
Brokered and wholesale time deposits	22,885			20,723			24,471			48,039			56,298			2,162			(33,413		)
Other borrowings	52,555			94,455			61,146			33,635			26,106			(41,900		)	26,449
Total interest-bearing liabilities	2,155,111			2,138,234			2,085,834			2,025,834			2,042,360			16,877			112,751
Noninterest-bearing deposits	872,954			823,043			848,331			862,315			826,534			49,911			46,420
Other liabilities	48,533			45,828			43,228			46,053			51,746			2,705			(3,213		)
Shareholders’ equity	559,561			557,365			546,838			542,444			534,702			2,196			24,859
Total liabilities and shareholders' equity	3,636,159			3,564,470			3,524,231			3,476,646			3,455,342			71,689			180,817

Interest Margins (2)
Interest-bearing deposits in other financial institutions	.31		%	.28		%	.33		%	.38		%	.28		%	.03		%	.03		%
Investment securities, tax-equivalent basis (3)	2.07			2.11			2.07			2.05			1.87			(.04		)	.20
Loans, excluding purchased credit impaired, tax-equivalent basis (4)	4.63			4.67			4.68			4.67			4.71			(.04		)	(.08		)
Purchased credit impaired loans	33.03			28.40			41.54			27.78			38.16			4.63			(5.13		)
Total earning assets	4.87		%	4.84		%	5.37		%	4.79		%	5.23		%	.03		%	(.36		)%
Interest-bearing transaction accounts	.12			.12			.12			.12			.13			—			(.01		)
Savings & money market deposits	.59			.54			.53			.50			.48			.05			.11
Time deposits less than $250,000	.70			.67			.64			.51			.39			.03			.31
Time deposits $250,000 or greater	.84			.77			.71			.53			.33			.07			.51
Brokered and wholesale time deposits	.85			.92			1.07			1.07			1.03			(.07		)	(.18		)
Other borrowings	.45			.40			.52			.65			.76			.05			(.31		)
Total interest-bearing liabilities	.49		%	.47		%	.46		%	.42		%	.39		%	.02		%	.10		%
Net interest spread	4.38		%	4.37		%	4.91		%	4.37		%	4.84		%	.01		%	(.46		)%
Net interest margin	4.56		%	4.54		%	5.08		%	4.53		%	4.99		%	.02		%	(.43		)%
Net interest margin excluding accretion income	3.50		%	3.57		%	3.53		%	3.48		%	3.40		%	(.07		)%	.10		%

(1) Includes average nonaccrual loans of $8.4 million for 4Q16, $8.6 million for 3Q16, $10.0 million for 2Q16, $8.9 million for 1Q16, and $6.5 million for 4Q15.

(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 $0 for 4Q16, $0 for 3Q16, $2,000 for 2Q16, $2,000 for 1Q16, and $3,000 for 4Q15.

(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 $142,000 for 4Q16, $142,000 for 3Q16, $113,000 for 2Q16, $165,000 for 1Q16, and $134,000 for 4Q15.



State Bank Financial Corporation
4Q16 Financial Supplement: Table 8
Reconciliation of Non-GAAP Measure (1)
Quarterly (Unaudited)

	4Q16			3Q16			2Q16			1Q16			4Q15

Book value per common share reconciliation
Book value per common share (GAAP)	$	15.80		$	15.21		$	15.00		$	14.73		$	14.47
Effect of goodwill and other intangibles	(2.32		)	(1.22		)	(1.23		)	(1.24		)	(1.25		)
Tangible book value per common share	$	13.48		$	13.99		$	13.77		$	13.49		$	13.22

(1) This press release includes tangible book value per common share, a financial measure not calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). The tangible book value measure is a non-GAAP measure and excludes the effect of the period end balance of intangible assets. Management believes that this non-GAAP tangible measure provides additional useful information, particularly since this measure is widely used by industry analysts for companies with prior merger and acquisition activities.

Reconciliations of this non-GAAP financial measures to the most directly comparable GAAP financial measure is presented in the accompanying table. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. This non-GAAP financial measure should not be considered as a substitute 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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