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	a3q17earningspresentatio.htm
8-K - 8-K - STATE BANK FINANCIAL CORP	a8kcoverpage93017.htm

Investor Relations: Sheila Ray 404.239.8684 / sheila.ray@statebt.com

State Bank Financial Corporation Reports Third Quarter 2017 Financial Results


▪	Third quarter 2017 net income of $14.4 million, or $.37 per diluted share


▪	Return on average assets of 1.37% in the third quarter of 2017


▪	Completed AloStar Bank of Commerce merger transaction on September 30, 2017, less than four months after announcement


▪	Proactive expense management led to third quarter efficiency ratio of 58.45%


▪	Average noninterest-bearing deposit growth of $32 million, or 3.3%, quarter over quarter

ATLANTA, GA, October 26, 2017 - State Bank Financial Corporation (NASDAQ: STBZ) today announced unaudited financial results for the third quarter ended September 30, 2017. Net income for the third quarter of 2017 was $14.4 million, compared to $15.2 million in the second quarter of 2017 and $12.4 million in the third quarter of 2016. The linked-quarter decline was primarily attributable to a reduction in loan recovery income of $2.3 million. Fully diluted earnings per share were $.37 in the third quarter of 2017, compared to $.39 in the second quarter of 2017 and $.34 in the third quarter of 2016.

Joe Evans, Chairman of State Bank Financial, commented, “I am extremely pleased with our team’s ability to promptly close the meaningfully accretive AloStar transaction in the third quarter. I look forward to closing out 2017 with a full quarter of AloStar's earnings on top of what was already shaping up to be an outstanding year for State Bank. AloStar brings a talented team with deep industry knowledge and a robust pipeline that will help us jumpstart 2018.”

Operating Highlights

Interest income on loans improved to $35.4 million in the third quarter of 2017, a $528,000 increase from the second quarter of 2017 and an $8.8 million increase from the third quarter of 2016. Net interest income of $44.3 million in the third quarter of 2017 decreased from $46.5 million in the second quarter of 2017 but increased from $38.1 million in the third quarter of 2016. Accretion income on loans was $6.5 million in the third quarter of 2017, down from $9.2 million in the second quarter of 2017 and $9.3 million in the third quarter of 2016. As of September 30, 2017, approximately $67 million of accretable discount remains to be recognized as loan accretion income.

Noninterest income was $9.7 million in the third quarter of 2017, compared to $10.5 million in the second quarter of 2017 and $9.8 million in the third quarter of 2016. Revenues in mortgage and SBA declined $303,000 and $519,000, respectively, in the third quarter of 2017, compared to the second quarter of 2017 while payroll and insurance income increased $69,000.

Total noninterest expense for the third quarter of 2017 was $31.6 million, compared to $32.0 million in the second quarter of 2017 and $28.5 million in the third quarter of 2016. The $426,000 linked-quarter decrease was primarily due to lower commission, incentive, and employee benefits costs, which were down $421,000 from the previous quarter due to lower production levels in noninterest income lines.

Financial Condition

Comparison of period-end balance sheet metrics for the quarter ended September 30, 2017 to prior periods is materially affected by the acquisition of AloStar Bank of Commerce, which was completed on September 30, 2017. Average balance sheet metrics for the quarter were not impacted by the acquisition.

Total assets at September 30, 2017, were $5.1 billion, up from $4.2 billion at June 30, 2017. Total loans were $3.6 billion at September 30, 2017, up $691.8 million from the second quarter of 2017 due to $718.6 million of loans acquired from AloStar Bank of Commerce. Period-end organic loans increased to $2.3 billion at September 30, 2017, an increase of $29.2 million from the second quarter of 2017. Purchased non-credit impaired and purchased credit impaired loans, excluding the AloStar acquisition, decreased to $549.6 million at the end of the third quarter of 2017, a $55.9 million linked-quarter decline.

Tom Wiley, Vice Chairman and CEO, commented “Reporting $14.4 million in net income for the quarter reflects the increasingly strong performance of the core bank. The fundamental trends remain strong, our team is intently focused on delivering an exceptional experience for our clients, and we are very excited about the complementary opportunity AloStar represents for the future of our combined franchise.”

Credit quality metrics remain solid at September 30, 2017. Past due organic and purchased non-credit impaired loans were .12% and .48% of their respective portfolios. The provision for loan losses on organic and purchased non-credit impaired loans was $1.3 million in the third quarter of 2017 and was primarily attributable to net charge-offs, organic loan growth, and continued seasoning of the purchased non-credit impaired portfolio. The organic allowance as a percent of organic loans was .99% at the end of the third quarter of 2017.

Total deposits at September 30, 2017, were $4.2 billion, up $788.4 million from $3.5 billion at June 30, 2017, including $705.6 million of deposits acquired from AloStar Bank of Commerce. Period-end transaction accounts, comprised of noninterest-bearing demand deposits and interest-bearing transaction accounts, increased $198.3 million from the second quarter of 2017 inclusive of the acquisition. Noninterest-bearing demand deposits represented 27.8% of total deposits as of September 30, 2017. Average noninterest-bearing demand deposits were $1.0 billion, a $32.0 million increase from the second quarter of 2017 and a $181.0 million increase from the third quarter of 2016.

Tangible book value per share was $14.01 at the end of the third quarter of 2017. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 13.37% and a Tier I risk-based capital ratio of 12.21%.

Detailed Results

Supplemental tables displaying financial results for the third quarter of 2017, the previous four quarters and year-to-date 2017 are included with this press release.

Non-GAAP Financial Measures

This press release contains financial 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 3Q17 Financial Supplement: Table 8, Reconciliation of Non-GAAP Measures.

Conference Call

Chairman Joe Evans, Chief Executive Officer Tom Wiley, Chief Financial Officer and Chief Operating 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: 1.800.630.4153

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 is completed 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 $5.1 billion in assets as of September 30, 2017, is an Atlanta-based bank holding company for State Bank and Trust Company. State Bank operates a full service banking business and offers a broad range of commercial and retail banking products to our customers throughout 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, our expectation that the AloStar Bank of Commerce transaction will meaningfully enhance our earnings through significant earnings accretion, and statements regarding the impact of AloStar's pipeline on our future performance. Such forward-looking statements are subject to risks, uncertainties, and other factors, including a downturn in the economy, particularly in our markets, volatile credit and financial markets both domestic and foreign, potential deterioration in real estate values, regulatory changes and excessive loan losses, the conversion of AloStar's operating systems and procedures may take longer than anticipated or may be more costly than anticipated or have unanticipated adverse results relating to the Company's or AloStar's existing businesses, the anticipated benefits of the AloStar transaction, including anticipated cost savings and strategic gains, may be significantly harder or take longer to achieve than expected or may not be achieved in their entirety as a result of unexpected factors or events, 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
3Q17 Financial Supplement: Table 1
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
														3Q17 change vs
(Dollars in thousands, except per share amounts)	3Q17			2Q17		1Q17			4Q16			3Q16		2Q17			3Q16

Income Statement Highlights
Interest income on loans	$	35,400		$	34,872	$	34,060		$	26,696		$	26,580	$	528		$	8,820
Accretion income on loans	6,520			9,228		7,677			10,271			9,335		(2,708		)	(2,815		)
Interest income on invested funds	5,782			5,747		5,460			4,810			4,714		35			1,068
Total interest income	47,702			49,847		47,197			41,777			40,629		(2,145		)	7,073
Interest expense	3,370			3,369		3,239			2,631			2,504		1			866
Net interest income	44,332			46,478		43,958			39,146			38,125		(2,146		)	6,207
Provision for loan and lease losses (organic & PNCI loans)	1,300			1,470		1,361			300			7		(170		)	1,293
Provision for loan and lease losses (purchased credit impaired loans)	(885		)	375		(359		)	(23		)	81		(1,260		)	(966		)
Provision for loan and lease losses	415			1,845		1,002			277			88		(1,430		)	327
Total noninterest income	9,682			10,476		9,459			9,911			9,769		(794		)	(87		)
Total noninterest expense	31,571			31,997		34,565			32,875			28,480		(426		)	3,091
Income before income taxes	22,028			23,112		17,850			15,905			19,326		(1,084		)	2,702
Income tax expense	7,592			7,909		6,292			5,578			6,885		(317		)	707
Net income	$	14,436		$	15,203	$	11,558		$	10,327		$	12,441	$	(767	)	$	1,995

Common Share Data
Basic earnings per share	$	.37		$	.39	$	.30		$	.28		$	.34	$	(.02	)	$	.03
Diluted earnings per share	.37			.39		.30			.28			.34		(.02		)	.03
Cash dividends declared per share	.14			.14		.14			.14			.14		—			—
Book value per share	16.48			16.23		15.96			15.80			15.21		.25			1.27
Tangible book value per share (1)	14.01			13.94		13.66			13.48			13.99		.07			.02
Market price per share (quarter end)	28.65			27.12		26.12			26.86			22.82		1.53			5.83

Common Shares Outstanding
Common stock	38,991,022			38,967,972		38,870,424			38,845,573			36,894,553		23,050			2,096,469
Weighted average shares outstanding:
Basic	37,918,753			37,896,125		37,867,718			35,904,009			35,863,183		22,628			2,055,570
Diluted	37,963,141			37,942,483		37,954,585			36,009,098			35,965,948		20,658			1,997,193

Average Balance Sheet Highlights
Loans	$	2,893,187		$	2,905,415	$	2,846,571		$	2,431,512		$	2,406,629	$	(12,228	)	$	486,558
Assets	4,178,731			4,200,843		4,181,961			3,636,544			3,564,860		(22,112		)	613,871
Deposits	3,437,329			3,413,831		3,423,506			2,975,510			2,866,822		23,498			570,507
Equity	638,620			627,294		617,009			559,561			557,365		11,326			81,255
Tangible equity (1)	550,002			538,153		527,603			514,982			512,265		11,849			37,737



State Bank Financial Corporation
3Q17 Financial Supplement: Table 1 (continued)
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
											3Q17 change vs
(Dollars in thousands, except per share amounts)	3Q17		2Q17		1Q17		4Q16		3Q16		2Q17		3Q16

Key Metrics (2)
Return on average assets	1.37	%	1.45	%	1.12	%	1.13	%	1.39	%	(.08	)%	(.02	)%
Return on average equity	8.97		9.72		7.60		7.34		8.88		(.75	)	.09
Yield on earning assets	4.85		5.11		4.93		4.87		4.84		(.26	)	.01
Cost of funds	.38		.38		.37		.35		.34		—		.04
Rate on interest-bearing liabilities	.54		.53		.52		.49		.47		.01		.07
Net interest margin	4.51		4.76		4.59		4.56		4.54		(.25	)	(.03	)
Leverage ratio (3)	13.37		13.23		13.04		14.90		14.64		.14		(1.27	)
Tier I risk-based capital ratio (3)	12.21		15.01		14.74		14.78		16.68		(2.80	)	(4.47	)
Total risk-based capital ratio (3)	12.81		15.79		15.49		15.52		17.56		(2.98	)	(4.75	)
Efficiency ratio (4)	58.45		56.18		64.71		67.01		59.46		2.27		(1.01	)
Average loans to average deposits	84.17		85.11		83.15		81.72		83.95		(.94	)	.22
Noninterest-bearing deposits to total deposits	27.82		29.24		27.71		28.69		30.09		(1.42	)	(2.27	)

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

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

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

(4) Noninterest expense divided by net interest income plus noninterest income.



State Bank Financial Corporation
3Q17 Financial Supplement: Table 2
Condensed Consolidated Balance Sheets
Quarterly (Unaudited)
																3Q17 change vs
(Dollars in thousands)	3Q17			2Q17			1Q17			4Q16			3Q16			2Q17			3Q16

Assets
Cash and amounts due from depository institutions	$	14,235		$	11,284		$	12,101		$	13,219		$	10,648		$	2,951		$	3,587
Interest-bearing deposits in other financial institutions	251,115			126,390			62,222			132,851			103,122			124,725			147,993
Federal funds sold	16,889			—			—			3,523			—			16,889			16,889
Cash and cash equivalents	282,239			137,674			74,323			149,593			113,770			144,565			168,469
Investment securities available-for-sale	920,763			847,795			896,297			847,178			822,655			72,968			98,108
Investment securities held-to-maturity	57,867			63,104			67,053			67,063			67,071			(5,237		)	(9,204		)
Loans	3,572,790			2,881,000			2,854,780			2,814,572			2,346,346			691,790			1,226,444
Allowance for loan and lease losses	(26,842		)	(27,988		)	(26,976		)	(26,598		)	(27,177		)	1,146			335
Loans, net	3,545,948			2,853,012			2,827,804			2,787,974			2,319,169			692,936			1,226,779
Loans held-for-sale	47,743			48,895			51,380			52,169			63,852			(1,152		)	(16,109		)
Other real estate owned	1,271			2,407			3,759			10,897			10,609			(1,136		)	(9,338		)
Premises and equipment, net	52,120			51,170			51,535			52,056			42,009			950			10,111
Goodwill	84,564			77,476			77,084			77,084			36,357			7,088			48,207
Other intangibles, net	11,755			11,599			12,054			12,749			8,515			156			3,240
SBA servicing rights	3,950			3,828			3,547			3,477			3,275			122			675
Bank-owned life insurance	66,846			66,320			65,855			65,371			60,282			526			6,564
Other assets	73,417			70,697			71,990			99,654			69,211			2,720			4,206
Total assets	$	5,148,483		$	4,233,977		$	4,202,681		$	4,225,265		$	3,616,775		$	914,506		$	1,531,708
Liabilities and Shareholders’ Equity
Noninterest-bearing deposits	$	1,179,698		$	1,009,509		$	944,838		$	984,419		$	890,588		$	170,189		$	289,110
Interest-bearing deposits	3,061,387			2,443,183			2,464,937			2,446,746			2,068,704			618,204			992,683
Total deposits	4,241,085			3,452,692			3,409,775			3,431,165			2,959,292			788,393			1,281,793
Federal funds purchased and securities sold under agreements to repurchase	25,499			25,256			25,056			27,673			20,124			243			5,375
FHLB borrowings	—			80,000			100,000			47,014			20,000			(80,000		)	(20,000		)
Notes payable	398			398			398			398			398			—			—
Other liabilities	238,911			43,294			47,169			105,382			55,827			195,617			183,084
Total liabilities	4,505,893			3,601,640			3,582,398			3,611,632			3,055,641			904,253			1,450,252
Total shareholders’ equity	642,590			632,337			620,283			613,633			561,134			10,253			81,456
Total liabilities and shareholders’ equity	$	5,148,483		$	4,233,977		$	4,202,681		$	4,225,265		$	3,616,775		$	914,506		$	1,531,708

Capital Ratios (1)
Average equity to average assets	15.28		%	14.93		%	14.75		%	15.39		%	15.63		%	.35		%	(.35		)%
Leverage ratio	13.37			13.23			13.04			14.90			14.64			.14			(1.27		)
CET1 risk-based capital ratio	12.21			15.01			14.74			14.78			16.68			(2.80		)	(4.47		)
Tier I risk-based capital ratio	12.21			15.01			14.74			14.78			16.68			(2.80		)	(4.47		)
Total risk-based capital ratio	12.81			15.79			15.49			15.52			17.56			(2.98		)	(4.75		)

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



State Bank Financial Corporation
3Q17 Financial Supplement: Table 3
Condensed Consolidated Income Statements
Quarterly (Unaudited)
																3Q17 change vs
(Dollars in thousands, except per share amounts)	3Q17			2Q17			1Q17			4Q16			3Q16			2Q17			3Q16

Net Interest Income:
Interest income on loans	$	35,400		$	34,872		$	34,060		$	26,696		$	26,580		$	528		$	8,820
Accretion income on loans	6,520			9,228			7,677			10,271			9,335			(2,708		)	(2,815		)
Interest income on invested funds	5,782			5,747			5,460			4,810			4,714			35			1,068
Interest expense	3,370			3,369			3,239			2,631			2,504			1			866
Net interest income	44,332			46,478			43,958			39,146			38,125			(2,146		)	6,207
Provision for loan and lease losses (organic & PNCI loans)	1,300			1,470			1,361			300			7			(170		)	1,293
Provision for loan and lease losses (purchased credit impaired loans)	(885		)	375			(359		)	(23		)	81			(1,260		)	(966		)
Provision for loan and lease losses	415			1,845			1,002			277			88			(1,430		)	327
Net interest income after provision for loan and lease losses	43,917			44,633			42,956			38,869			38,037			(716		)	5,880
Noninterest Income:
Service charges on deposits	1,575			1,471			1,467			1,319			1,383			104			192
Mortgage banking income	2,793			3,096			2,894			2,511			3,216			(303		)	(423		)
Payroll and insurance income	1,487			1,418			1,495			1,528			1,297			69			190
SBA income	1,464			1,983			1,178			1,718			1,553			(519		)	(89		)
ATM income	826			864			832			735			759			(38		)	67
Bank-owned life insurance income	526			465			484			467			533			61			(7		)
Gain on sale of investment securities	3			13			12			42			38			(10		)	(35		)
Other	1,008			1,166			1,097			1,591			990			(158		)	18
Total noninterest income	9,682			10,476			9,459			9,911			9,769			(794		)	(87		)
Noninterest Expense:
Salaries and employee benefits	21,457			21,912			22,057			19,554			19,799			(455		)	1,658
Occupancy and equipment	3,187			3,329			3,280			3,069			2,984			(142		)	203
Data processing	2,587			2,382			2,639			2,131			2,097			205			490
Legal and professional fees	700			898			1,805			1,702			1,064			(198		)	(364		)
Merger-related expenses	135			372			2,235			3,507			135			(237		)	—
Marketing	342			403			664			430			665			(61		)	(323		)
Federal deposit insurance premiums and other regulatory fees	407			398			397			188			441			9			(34		)
Loan collection costs and OREO activity	181			(213		)	(1,042		)	(127		)	(841		)	394			1,022
Amortization of intangibles	701			697			696			516			513			4			188
Other	1,874			1,819			1,834			1,905			1,623			55			251
Total noninterest expense	31,571			31,997			34,565			32,875			28,480			(426		)	3,091
Income Before Income Taxes	22,028			23,112			17,850			15,905			19,326			(1,084		)	2,702
Income tax expense	7,592			7,909			6,292			5,578			6,885			(317		)	707
Net Income	$	14,436		$	15,203		$	11,558		$	10,327		$	12,441		$	(767	)	$	1,995

Net income allocated to participating securities	$	389		$	413		$	295		$	282		$	348		$	(24	)	$	41
Net income allocated to common shareholders	14,047			14,790			11,263			10,045			12,093			(743		)	1,954
Earnings Per Share
Basic	$	.37		$	.39		$	.30		$	.28		$	.34		$	(.02	)	$	.03
Diluted	.37			.39			.30			.28			.34			(.02		)	.03
Weighted Average Shares Outstanding
Basic	37,918,753			37,896,125			37,867,718			35,904,009			35,863,183			22,628			2,055,570
Diluted	37,963,141			37,942,483			37,954,585			36,009,098			35,965,948			20,658			1,997,193



State Bank Financial Corporation
3Q17 Financial Supplement: Table 4
Condensed Consolidated Income Statements
Year to Date (Unaudited)
	Nine Months Ended September 30						Change
(Dollars in thousands, except per share amounts)	2017			2016			Change

Net Interest Income:
Interest income on loans	$	104,332		$	76,328		$	28,004
Accretion income on loans	23,425			33,039			(9,614		)
Interest income on invested funds	16,989			14,113			2,876
Interest expense	9,978			6,988			2,990
Net interest income	134,768			116,492			18,276
Provision for loan and lease losses (organic & PNCI loans)	4,131			3,296			835
Provision for loan and lease losses (purchased credit impaired loans)	(869		)	(3,336		)	2,467
Provision for loan and lease losses	3,262			(40		)	3,302
Net interest income after provision for loan and lease losses	131,506			116,532			14,974
Noninterest Income:
Service charges on deposits	4,513			4,121			392
Mortgage banking income	8,783			9,808			(1,025		)
Payroll and insurance income	4,400			4,097			303
SBA income	4,625			4,740			(115		)
ATM income	2,522			2,273			249
Bank-owned life insurance income	1,475			1,463			12
Gain on sale of investment securities	28			447			(419		)
Other	3,271			2,441			830
Total noninterest income	29,617			29,390			227
Noninterest Expense:
Salaries and employee benefits	65,426			59,221			6,205
Occupancy and equipment	9,796			9,100			696
Data processing	7,608			6,383			1,225
Legal and professional fees	3,403			2,993			410
Merger-related expenses	2,742			454			2,288
Marketing	1,409			1,786			(377		)
Federal deposit insurance premiums and other regulatory fees	1,202			1,556			(354		)
Loan collection costs and OREO activity	(1,074		)	(452		)	(622		)
Amortization of intangibles	2,094			1,586			508
Other	5,527			5,425			102
Total noninterest expense	98,133			88,052			10,081
Income Before Income Taxes	62,990			57,870			5,120
Income tax expense	21,793			20,606			1,187
Net Income	$	41,197		$	37,264		$	3,933

Net income allocated to participating securities	$	1,095		$	1,021		$	74
Net income allocated to common shareholders	40,102			36,243			3,859

Earnings Per Share
Basic	$	1.06		$	1.01		$	.05
Diluted	1.06			1.01			.05
Weighted Average Shares Outstanding
Basic	37,894,385			35,940,402			1,953,983
Diluted	37,943,971			36,040,655			1,903,316



State Bank Financial Corporation
3Q17 Financial Supplement: Table 5
Condensed Consolidated Composition of Loans and Deposits at Period Ends
Quarterly (Unaudited)
											3Q17 change vs
(Dollars in thousands)	3Q17		2Q17		1Q17		4Q16		3Q16		2Q17			3Q16

Composition of Loans
Organic loans (1):
Construction, land & land development	$	460,368	$	413,557	$	418,186	$	500,018	$	486,299	$	46,811		$	(25,931	)
Other commercial real estate	915,727		960,762		885,570		754,790		744,270		(45,035		)	171,457
Total commercial real estate	1,376,095		1,374,319		1,303,756		1,254,808		1,230,569		1,776			145,526
Residential real estate	175,258		167,755		161,460		144,295		139,926		7,503			35,332
Owner-occupied real estate	261,784		244,637		251,703		256,317		239,726		17,147			22,058
Commercial, financial & agricultural	363,551		355,629		336,257		327,381		306,141		7,922			57,410
Leases	66,765		73,103		62,603		71,724		74,722		(6,338		)	(7,957		)
Consumer	61,200		60,028		56,776		36,039		39,373		1,172			21,827
Total organic loans	2,304,653		2,275,471		2,172,555		2,090,564		2,030,457		29,182			274,196
Purchased non-credit impaired loans(2):
Construction, land & land development	30,670		31,083		43,787		51,208		10,035		(413		)	20,635
Other commercial real estate	234,486		171,914		188,737		209,531		58,261		62,572			176,225
Total commercial real estate	265,156		202,997		232,524		260,739		68,296		62,159			196,860
Residential real estate	112,244		117,449		137,699		144,596		56,468		(5,205		)	55,776
Owner-occupied real estate	125,438		114,438		119,871		115,566		52,016		11,000			73,422
Commercial, financial & agricultural	558,992		31,654		33,690		36,206		10,447		527,338			548,545
Consumer	2,647		3,393		4,281		6,255		1,826		(746		)	821
Total purchased non-credit impaired loans	1,064,477		469,931		528,065		563,362		189,053		594,546			875,424
Purchased credit impaired loans (3):
Construction, land & land development	16,918		16,857		17,211		16,537		11,564		61			5,354
Other commercial real estate	102,934		46,078		60,664		60,742		38,238		56,856			64,696
Total commercial real estate	119,852		62,935		77,875		77,279		49,802		56,917			70,050
Residential real estate	42,190		45,513		49,728		54,507		53,953		(3,323		)	(11,763		)
Owner-occupied real estate	26,210		23,262		22,099		23,980		22,389		2,948			3,821
Commercial, financial & agricultural	15,139		3,617		4,153		4,533		608		11,522			14,531
Consumer	269		271		305		347		84		(2		)	185
Total purchased credit impaired loans	203,660		135,598		154,160		160,646		126,836		68,062			76,824
Total loans	$	3,572,790	$	2,881,000	$	2,854,780	$	2,814,572	$	2,346,346	$	691,790		$	1,226,444
Composition of Deposits
Noninterest-bearing demand deposits	$	1,179,698	$	1,009,509	$	944,838	$	984,419	$	890,588	$	170,189		$	289,110
Interest-bearing transaction accounts	619,156		591,038		599,858		664,350		547,078		28,118			72,078
Savings and money market deposits	1,680,922		1,373,686		1,393,711		1,292,867		1,101,458		307,236			579,464
Time deposits	731,416		419,020		454,889		466,849		390,429		312,396			340,987
Brokered and wholesale time deposits	29,893		59,439		16,479		22,680		29,739		(29,546		)	154
Total deposits	$	4,241,085	$	3,452,692	$	3,409,775	$	3,431,165	$	2,959,292	$	788,393		$	1,281,793

(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, S Bank, and AloStar.

(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
3Q17 Financial Supplement: Table 6
Condensed Consolidated Asset Quality Data
Quarterly (Unaudited)
																3Q17 change vs
(Dollars in thousands)	3Q17			2Q17			1Q17			4Q16			3Q16			2Q17			3Q16

Allowance for loan and lease losses on organic loans
Beginning Balance	$	22,560		$	21,885		$	21,086		$	21,736		$	22,008		$	675		$	552
Charge-offs	(912		)	(536		)	(540		)	(553		)	(311		)	(376		)	(601		)
Recoveries	106			113			77			34			39			(7		)	67
Net (charge-offs) recoveries	(806		)	(423		)	(463		)	(519		)	(272		)	(383		)	(534		)
Provision for loan and lease losses	955			1,098			1,262			(131		)	—			(143		)	955
Ending Balance	$	22,709		$	22,560		$	21,885		$	21,086		$	21,736		$	149		$	973

Allowance for loan and lease losses on purchased non-credit impaired loans
Beginning Balance	$	667		$	491		$	439		$	150		$	158		$	176		$	509
Charge-offs	(152		)	(197		)	(48		)	(143		)	(16		)	45			(136		)
Recoveries	40			1			1			1			1			39			39
Net (charge-offs) recoveries	(112		)	(196		)	(47		)	(142		)	(15		)	84			(97		)
Provision for loan and lease losses	345			372			99			431			7			(27		)	338
Ending Balance	$	900		$	667		$	491		$	439		$	150		$	233		$	750

Allowance for loan and lease losses on purchased credit impaired loans
Beginning Balance	$	4,761		$	4,600		$	5,073		$	5,291		$	5,433		$	161		$	(672	)
Charge-offs	(643		)	(214		)	(114		)	(195		)	(223		)	(429		)	(420		)
Recoveries	—			—			—			—			—			—			—
Net (charge-offs) recoveries	(643		)	(214		)	(114		)	(195		)	(223		)	(429		)	(420		)
Provision for loan and lease losses	(885		)	375			(359		)	(23		)	81			(1,260		)	(966		)
Ending Balance	$	3,233		$	4,761		$	4,600		$	5,073		$	5,291		$	(1,528	)	$	(2,058	)

Nonperforming organic assets
Nonaccrual loans	$	5,483		$	1,422		$	6,114		$	6,234		$	6,423		$	4,061		$	(940	)
Total nonperforming organic loans	5,483			1,422			6,114			6,234			6,423			4,061			(940		)
Other real estate owned	—			23			232			282			83			(23		)	(83		)
Total nonperforming organic assets	$	5,483		$	1,445		$	6,346		$	6,516		$	6,506		$	4,038		$	(1,023	)

Nonperforming purchased non-credit impaired assets
Nonaccrual loans	$	5,614		$	5,141		$	4,098		$	3,381		$	1,672		$	473		$	3,942
Total nonperforming PNCI loans	5,614			5,141			4,098			3,381			1,672			473			3,942
Other real estate owned	—			—			—			—			21			—			(21		)
Total nonperforming PNCI assets	$	5,614		$	5,141		$	4,098		$	3,381		$	1,693		$	473		$	3,921

Ratios for organic assets
Annualized QTD charge-offs (recoveries) on organic loans to average organic loans	.14		%	.08		%	.09		%	.10		%	.05		%	.06		%	.09		%
Nonperforming organic loans to organic loans	.24			.06			.28			.30			.32			.18			(.08		)
Nonperforming organic assets to organic loans + OREO	.24			.06			.29			.31			.32			.18			(.08		)
Past due organic loans to organic loans	.12			.09			.08			.06			.09			.03			.03
Allowance for loan and lease losses on organic loans to organic loans	.99			.99			1.01			1.01			1.07			—			(.08		)



State Bank Financial Corporation
3Q17 Financial Supplement: Table 6 (continued)
Condensed Consolidated Asset Quality Data
Quarterly (Unaudited)
											3Q17 change vs
(Dollars in thousands)	3Q17		2Q17		1Q17		4Q16		3Q16		2Q17		3Q16

Ratios for purchased non-credit impaired loans
Annualized QTD charge-offs (recoveries) on PNCI loans to average PNCI loans	.10	%	.16	%	.03	%	.31	%	.03	%	(.06)	%	.07	%
Nonperforming PNCI loans to PNCI loans	.53		1.09		.78		.60		.88		(.56	)	(.35	)
Nonperforming PNCI assets to PNCI loans + OREO	.53		1.09		.78		.60		.90		(.56	)	(.37	)
Past due PNCI loans to PNCI loans	.48		1.05		.90		.68		.41		(.57	)	.07
Allowance for loan and lease losses on PNCI loans to PNCI loans	.08		.14		.09		.08		.08		(.06	)	—

Ratios for purchased credit impaired loans (1)
Annualized QTD charge-offs (recoveries) on PCI loans to average PCI loans	1.95	%	.60	%	.30	%	.63	%	.68	%	1.35	%	1.27	%
Past due PCI loans to PCI loans	8.12		10.26		10.68		8.92		11.00		(2.14	)	(2.88	)
Allowance for loan and lease losses on PCI loans to PCI loans	1.59		3.51		2.98		3.16		4.17		(1.92	)	(2.58	)

(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
3Q17 Financial Supplement: Table 7
Condensed Consolidated Average Balances and Yield Analysis
Quarterly (Unaudited)
																3Q17 change vs
(Dollars in thousands)	3Q17			2Q17			1Q17			4Q16			3Q16			2Q17			3Q16
Average Balances
Interest-bearing deposits in other financial institutions and federal funds sold	$	108,546		$	73,862		$	85,720		$	82,797		$	63,315		$	34,684		$	45,231
Investment securities	913,898			947,300			961,913			911,025			881,642			(33,402		)	32,256
Loans, excluding purchased credit impaired (1)	2,762,479			2,762,996			2,692,517			2,307,794			2,275,859			(517		)	486,620
Purchased credit impaired loans	130,708			142,419			154,054			123,718			130,770			(11,711		)	(62		)
Total earning assets	3,915,631			3,926,577			3,894,204			3,425,334			3,351,586			(10,946		)	564,045
Total nonearning assets	263,100			274,266			287,757			211,210			213,274			(11,166		)	49,826
Total assets	4,178,731			4,200,843			4,181,961			3,636,544			3,564,860			(22,112		)	613,871
Interest-bearing transaction accounts	580,090			585,343			602,378			575,977			515,974			(5,253		)	64,116
Savings & money market deposits	1,383,326			1,380,586			1,388,876			1,118,548			1,105,635			2,740			277,691
Time deposits	420,192			437,475			456,811			385,146			401,447			(17,283		)	18,745
Brokered and wholesale time deposits	49,675			38,353			19,926			22,885			20,723			11,322			28,952
Other borrowings	57,988			119,652			81,344			52,555			94,455			(61,664		)	(36,467		)
Total interest-bearing liabilities	2,491,271			2,561,409			2,549,335			2,155,111			2,138,234			(70,138		)	353,037
Noninterest-bearing deposits	1,004,046			972,074			955,515			872,954			823,043			31,972			181,003
Other liabilities	44,794			40,066			60,102			48,918			46,218			4,728			(1,424		)
Shareholders’ equity	638,620			627,294			617,009			559,561			557,365			11,326			81,255
Total liabilities and shareholders' equity	4,178,731			4,200,843			4,181,961			3,636,544			3,564,860			(22,112		)	613,871

Interest Margins (2)
Interest-bearing deposits in other financial institutions and federal funds sold	.80		%	.50		%	.44		%	.31		%	.28		%	.30		%	.52		%
Investment securities, tax-equivalent basis	2.42			2.39			2.26			2.07			2.11			.03			.31
Loans, excluding purchased credit impaired, tax-equivalent basis (3)	5.11			5.08			5.15			4.63			4.67			.03			.44
Purchased credit impaired loans	19.79			25.99			20.21			33.03			28.40			(6.20		)	(8.61		)
Total earning assets	4.85		%	5.11		%	4.93		%	4.87		%	4.84		%	(.26		)%	.01		%
Interest-bearing transaction accounts	.13			.12			.12			.12			.12			.01			.01
Savings & money market deposits	.63			.61			.60			.59			.54			.02			.09
Time deposits	.72			.69			.72			.72			.68			.03			.04
Brokered and wholesale time deposits	1.05			1.05			1.06			.85			.92			—			.13
Other borrowings	.76			.82			.65			.45			.40			(.06		)	.36
Total interest-bearing liabilities	.54		%	.53		%	.52		%	.49		%	.47		%	.01		%	.07		%
Net interest spread	4.31		%	4.58		%	4.41		%	4.38		%	4.37		%	(.27		)%	(.06		)%
Net interest margin	4.51		%	4.76		%	4.59		%	4.56		%	4.54		%	(.25		)%	(.03		)%
Net interest margin contribution from accretion income on loans	.66		%	.94		%	.80		%	1.19		%	1.11		%	(.28		)%	(.45		)%

(1) Includes average nonaccrual loans of $8.0 million for 3Q17, $9.3 million for 2Q17, $9.9 million for 1Q17, $8.4 million for 4Q16, and $8.6 million for 3Q16.

(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 tax-exempt loan interest income to a fully taxable basis. The taxable equivalent adjustments included above amount to $177,000 for 3Q17, $131,000 for 2Q17, $140,000 for 1Q17, $142,000 for 4Q16, and $142,000 for 3Q16.



State Bank Financial Corporation
3Q17 Financial Supplement: Table 8
Reconciliation of Non-GAAP Measures (1)
Quarterly (Unaudited)
(dollars in thousands, except per share amounts; taxable equivalent)	3Q17			2Q17			1Q17			4Q16			3Q16

Book value per common share reconciliation
Book value per common share (GAAP)	$	16.48		$	16.23		$	15.96		$	15.80		$	15.21
Effect of goodwill and other intangibles	(2.47		)	(2.29		)	(2.30		)	(2.32		)	(1.22		)
Tangible book value per common share	$	14.01		$	13.94		$	13.66		$	13.48		$	13.99

Average tangible equity reconciliation
Average equity (GAAP)	$	638,620		$	627,294		$	617,009		$	559,561		$	557,365
Effect of average goodwill and other intangibles	(88,618		)	(89,141		)	(89,406		)	(44,579		)	(45,100		)
Average tangible equity	$	550,002		$	538,153		$	527,603		$	514,982		$	512,265

(1)

Certain financial measures included in this press release, tangible book value per common share and average tangible equity, are financial measures that are not recognized by generally accepted accounting principles in the United States, or GAAP. These non-GAAP financial measures exclude the effect of the period end or average balance of intangible assets. Management believes that these non-GAAP financial measures provides additional useful information to investors, particularly since these measure are widely used by industry analysts for companies with prior merger and acquisition activities, such as us.

A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure is presented in the table above. 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 a substitute for GAAP financial measures, and we strongly encourage 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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