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	a4q17earningspresentatio.htm
8-K - 8-K - STATE BANK FINANCIAL CORP	a8kcoverpage123117.htm

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

State Bank Financial Corporation Reports

Fourth Quarter and Full Year 2017 Financial Results

2017 Highlights


▪	Record full year pretax income of $87.6 million


▪	Non-cash revaluation charge on our net deferred tax assets of $10.7 million, or $.27 per fully diluted share, in the fourth quarter


▪	Interest income on loans and invested funds increased $52.3 million year over year


▪	Noninterest-bearing deposit growth of $102.7 million, or 10.4% year over year, excluding the AloStar acquisition


▪	Announced and completed the AloStar Bank of Commerce merger transaction


▪	$.52 of tangible book value growth in 2017

ATLANTA, GA, January 25, 2018 - State Bank Financial Corporation (NASDAQ: STBZ) today announced unaudited financial results for the fourth quarter and full year ended December 31, 2017. Full year net income for 2017 was $46.6 million, or $1.19 per fully diluted share, compared to $47.6 million, or $1.28 per fully diluted share, for full year 2016. Net income for the fourth quarter of 2017 was $5.4 million, compared to $14.4 million in the third quarter of 2017 and $10.3 million in the fourth quarter of 2016. Fully diluted earnings per share were $.14 in the fourth quarter of 2017, compared to $.37 in the third quarter of 2017 and $.28 in the fourth quarter of 2016. Net income for the fourth quarter and full year ended December 31, 2017 includes the impact of a $10.7 million non-cash tax expense on tax reform and merger election related revaluation of our net deferred tax assets and $911,000 in after tax securities losses related to an investment portfolio restructure. Additionally, after tax merger expenses of $1.6 million and $3.3 million were included in our results for the quarter and year ended December 31, 2017, respectively.

Income before income taxes for 2017 was $87.6 million compared to $73.8 million for full year 2016. Income before income taxes for the fourth quarter of 2017 was $24.6 million, compared to $22.0 million in the third quarter of 2017 and $15.9 million in the fourth quarter of 2016. The annual and linked-quarter increases were primarily attributable to an increase in net interest income, partially offset by an increase in noninterest expenses, both of which related to the AloStar Bank of Commerce acquisition.

Joe Evans, Chairman of State Bank Financial, commented, “2017 was a great year for State Bank by any measure. With the completion of a significant, immediately accretive acquisition and our continued focus on expense control and margin management, we grew pretax income 18.8% over the prior year. Further, we believe our strong finish in 2017 has set the stage for another solid year in 2018.”

Operating Highlights

Interest income on loans improved to $46.9 million in the fourth quarter of 2017, an $11.5 million increase from the third quarter of 2017 and a $20.2 million increase from the fourth quarter of 2016. Net interest income of $58.0 million in the fourth quarter of 2017 increased from $44.3 million in the third quarter of 2017 and $39.1 million in the fourth quarter of 2016. Accretion income on loans was $10.7 million in the fourth quarter of 2017, up from $6.5 million in the third quarter of 2017 and $10.3 million in the fourth quarter of 2016. The $4.2 million linked-quarter increase was primarily due to unexpected acceleration of certain purchased credit impaired loan payoffs. As of December 31, 2017, approximately $58 million of accretable discount remains to be recognized as loan accretion income.

Noninterest income was $10.1 million in the fourth quarter of 2017, compared to $9.7 million in the third quarter of 2017 and $9.9 million in the fourth quarter of 2016. Revenues in SBA and payroll and insurance increased $402,000 and $211,000, respectively, in the fourth quarter of 2017, compared to the third quarter of 2017, while mortgage banking income decreased $235,000. Loss on sale of securities was $1.5 million in the fourth quarter of 2017, as we opportunistically restructured our portfolio and sold certain lower yielding securities in a loss position and reinvested into higher yielding securities.

Total noninterest expense for the fourth quarter of 2017 was $40.7 million, compared to $31.6 million in the third quarter of 2017 and $32.9 million in the fourth quarter of 2016. The $9.1 million linked-quarter increase was primarily due to $7.8 million of noninterest expense related to the AloStar Bank of Commerce acquisition.

Financial Condition

Total assets at December 31, 2017, were $5.0 billion, down from $5.1 billion at September 30, 2017. Total loans were $3.5 billion at December 31, 2017, down $40.6 million from the third quarter of 2017. Period-end organic loans increased to $2.4 billion at December 31, 2017, an increase of $61.2 million from the third quarter of 2017. Purchased non-credit impaired loans decreased to $990.7 million at December 31, 2017, a $73.7 million linked-quarter decline. Purchased credit impaired loans decreased to $175.6 million at December 31, 2017, a $28.0 million linked-quarter decline.

Past due organic and purchased non-credit impaired loans were .20% and .40% of their respective portfolios at December 31, 2017. The provision for loan losses on organic and purchased non-credit impaired loans was $2.1 million in the fourth 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 1.02% at the end of the fourth quarter of 2017.

Total deposits at December 31, 2017, were $4.2 billion, up $2.1 million from September 30, 2017. Period-end transaction accounts, comprised of noninterest-bearing demand deposits and interest-bearing transaction accounts, increased $80.4 million from the third quarter of 2017. Noninterest-bearing demand deposits represented 28.1% of total deposits as of December 31, 2017. Average noninterest-bearing demand deposits were $1.1 billion, a $143.8 million increase from the third quarter of 2017 and a $274.9 million increase from the fourth quarter of 2016.

Tom Wiley, Vice Chairman and CEO, commented “After a record setting year in 2017, I’m even more optimistic about our prospects for 2018. Benefits from the full integration of the AloStar acquisition, tax reform and economic trends in our core markets should all be positive catalysts for State Bank. Our strategic priorities remain intently focused on taking extraordinary care of our clients, continuing to build our core deposit base, being disciplined risk managers and growing earnings per share.”

Tangible book value per share was $14.00 at the end of the fourth quarter of 2017. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 11.24% and a Tier I risk-based capital ratio of 12.61%.

Detailed Results

Supplemental tables displaying financial results for the fourth quarter of 2017, the previous four quarters, and full year 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 4Q17 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 10:00 a.m. ET.

Dial in number: 1.800.699.3428

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 $5.0 billion in assets as of December 31, 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 prospects for 2018, including the benefits of the full integration of the AloStar Bank of Commerce acquisition, tax reform and economic trends in our core markets, our ability to continue to build our core deposit base, manage risk and grow earnings per share. 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
4Q17 Financial Supplement: Table 1
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
														4Q17 change vs
(Dollars in thousands, except per share amounts)	4Q17		3Q17			2Q17		1Q17			4Q16			3Q17			4Q16

Income Statement Highlights
Interest income on loans	$	46,926	$	35,400		$	34,872	$	34,060		$	26,696		$	11,526		$	20,230
Accretion income on loans	10,671		6,520			9,228		7,677			10,271			4,151			400
Interest income on invested funds	6,034		5,782			5,747		5,460			4,810			252			1,224
Total interest income	63,631		47,702			49,847		47,197			41,777			15,929			21,854
Interest expense	5,614		3,370			3,369		3,239			2,631			2,244			2,983
Net interest income	58,017		44,332			46,478		43,958			39,146			13,685			18,871
Provision for loan and lease losses (organic & PNCI loans)	2,050		1,300			1,470		1,361			300			750			1,750
Provision for loan and lease losses (purchased credit impaired loans)	798		(885		)	375		(359		)	(23		)	1,683			821
Provision for loan and lease losses	2,848		415			1,845		1,002			277			2,433			2,571
Total noninterest income	10,140		9,682			10,476		9,459			9,911			458			229
Total noninterest expense	40,684		31,571			31,997		34,565			32,875			9,113			7,809
Income before income taxes	24,625		22,028			23,112		17,850			15,905			2,597			8,720
Income tax expense	19,248		7,592			7,909		6,292			5,578			11,656			13,670
Net income	$	5,377	$	14,436		$	15,203	$	11,558		$	10,327		$	(9,059	)	$	(4,950	)

Common Share Data
Basic earnings per share	$	.14	$	.37		$	.39	$	.30		$	.28		$	(.23	)	$	(.14	)
Diluted earnings per share	.14		.37			.39		.30			.28			(.23		)	(.14		)
Cash dividends declared per share	.14		.14			.14		.14			.14			—			—
Book value per share	16.45		16.48			16.23		15.96			15.80			(.03		)	.65
Tangible book value per share (1)	14.00		14.01			13.94		13.66			13.48			(.01		)	.52
Market price per share (quarter end)	29.84		28.65			27.12		26.12			26.86			1.19			2.98

Common Shares Outstanding
Common stock	38,992,163		38,991,022			38,967,972		38,870,424			38,845,573			1,141			146,590
Weighted average shares outstanding:
Basic	38,009,181		37,918,753			37,896,125		37,867,718			35,904,009			90,428			2,105,172
Diluted	38,068,619		37,963,141			37,942,483		37,954,585			36,009,098			105,478			2,059,521

Average Balance Sheet Highlights
Loans	$	3,603,482	$	2,893,187		$	2,905,415	$	2,846,571		$	2,431,512		$	710,295		$	1,171,970
Assets	4,982,451		4,178,731			4,200,843		4,181,961			3,636,544			803,720			1,345,907
Deposits	4,248,553		3,437,329			3,413,831		3,423,506			2,975,510			811,224			1,273,043
Equity	645,409		638,620			627,294		617,009			559,561			6,789			85,848
Tangible equity (1)	549,564		550,002			538,153		527,603			514,982			(438		)	34,582



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

Key Metrics (2)
Return on average assets	.43	%	1.37	%	1.45	%	1.12	%	1.13	%	(.94	)%	(.70	)%
Return on average equity	3.31		8.97		9.72		7.60		7.34		(5.66	)	(4.03	)
Yield on earning assets	5.39		4.85		5.11		4.93		4.87		.54		.52
Cost of funds	.52		.38		.38		.37		.35		.14		.17
Rate on interest-bearing liabilities	.71		.54		.53		.52		.49		.17		.22
Net interest margin	4.91		4.51		4.76		4.59		4.56		.40		.35
Leverage ratio (3)	11.24		13.37		13.23		13.04		14.90		(2.13	)	(3.66	)
Tier I risk-based capital ratio (3)	12.61		12.30		15.01		14.74		14.78		.31		(2.17	)
Total risk-based capital ratio (3)	13.27		12.91		15.79		15.49		15.52		.36		(2.25	)
Efficiency ratio (4)	59.69		58.45		56.18		64.71		67.01		1.24		(7.32	)
Average loans to average deposits	84.82		84.17		85.11		83.15		81.72		.65		3.10
Noninterest-bearing deposits to total deposits	28.07		27.82		29.24		27.71		28.69		.25		(.62	)

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

Assets
Cash and amounts due from depository institutions	$	17,438		$	14,235		$	11,284		$	12,101		$	13,219		$	3,203		$	4,219
Interest-bearing deposits in other financial institutions	211,142			251,115			126,390			62,222			132,851			(39,973		)	78,291
Federal funds sold	2,297			16,889			—			—			3,523			(14,592		)	(1,226		)
Cash and cash equivalents	230,877			282,239			137,674			74,323			149,593			(51,362		)	81,284
Investment securities available-for-sale	873,970			920,763			847,795			896,297			847,178			(46,793		)	26,792
Investment securities held-to-maturity	32,852			57,867			63,104			67,053			67,063			(25,015		)	(34,211		)
Loans	3,532,193			3,572,790			2,881,000			2,854,780			2,814,572			(40,597		)	717,621
Allowance for loan and lease losses	(28,750		)	(26,842		)	(27,988		)	(26,976		)	(26,598		)	(1,908		)	(2,152		)
Loans, net	3,503,443			3,545,948			2,853,012			2,827,804			2,787,974			(42,505		)	715,469
Loans held-for-sale	36,211			47,743			48,895			51,380			52,169			(11,532		)	(15,958		)
Other real estate owned	895			1,271			2,407			3,759			10,897			(376		)	(10,002		)
Premises and equipment, net	51,794			52,120			51,170			51,535			52,056			(326		)	(262		)
Goodwill	84,564			84,564			77,476			77,084			77,084			—			7,480
Other intangibles, net	11,034			11,755			11,599			12,054			12,749			(721		)	(1,715		)
SBA servicing rights	4,069			3,950			3,828			3,547			3,477			119			592
Bank-owned life insurance	67,313			66,846			66,320			65,855			65,371			467			1,942
Other assets	61,560			73,417			70,697			71,990			99,654			(11,857		)	(38,094		)
Total assets	$	4,958,582		$	5,148,483		$	4,233,977		$	4,202,681		$	4,225,265		$	(189,901	)	$	733,317
Liabilities and Shareholders’ Equity
Noninterest-bearing deposits	$	1,191,106		$	1,179,698		$	1,009,509		$	944,838		$	984,419		$	11,408		$	206,687
Interest-bearing deposits	3,052,029			3,061,387			2,443,183			2,464,937			2,446,746			(9,358		)	605,283
Total deposits	4,243,135			4,241,085			3,452,692			3,409,775			3,431,165			2,050			811,970
Federal funds purchased and securities sold under agreements to repurchase	25,209			25,499			25,256			25,056			27,673			(290		)	(2,464		)
FHLB borrowings	—			—			80,000			100,000			47,014			—			(47,014		)
Notes payable	398			398			398			398			398			—			—
Other liabilities	48,289			238,911			43,294			47,169			105,382			(190,622		)	(57,093		)
Total liabilities	4,317,031			4,505,893			3,601,640			3,582,398			3,611,632			(188,862		)	705,399
Total shareholders’ equity	641,551			642,590			632,337			620,283			613,633			(1,039		)	27,918
Total liabilities and shareholders’ equity	$	4,958,582		$	5,148,483		$	4,233,977		$	4,202,681		$	4,225,265		$	(189,901	)	$	733,317

Capital Ratios (1)
Average equity to average assets	12.95		%	15.28		%	14.93		%	14.75		%	15.39		%	(2.33		)%	(2.44		)%
Leverage ratio	11.24			13.37			13.23			13.04			14.90			(2.13		)	(3.66		)
CET1 risk-based capital ratio	12.61			12.30			15.01			14.74			14.78			.31			(2.17		)
Tier I risk-based capital ratio	12.61			12.30			15.01			14.74			14.78			.31			(2.17		)
Total risk-based capital ratio	13.27			12.91			15.79			15.49			15.52			.36			(2.25		)

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



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

Net Interest Income:
Interest income on loans	$	46,926		$	35,400		$	34,872		$	34,060		$	26,696		$	11,526		$	20,230
Accretion income on loans	10,671			6,520			9,228			7,677			10,271			4,151			400
Interest income on invested funds	6,034			5,782			5,747			5,460			4,810			252			1,224
Interest expense	5,614			3,370			3,369			3,239			2,631			2,244			2,983
Net interest income	58,017			44,332			46,478			43,958			39,146			13,685			18,871
Provision for loan and lease losses (organic & PNCI loans)	2,050			1,300			1,470			1,361			300			750			1,750
Provision for loan and lease losses (purchased credit impaired loans)	798			(885		)	375			(359		)	(23		)	1,683			821
Provision for loan and lease losses	2,848			415			1,845			1,002			277			2,433			2,571
Net interest income after provision for loan and lease losses	55,169			43,917			44,633			42,956			38,869			11,252			16,300
Noninterest Income:
Service charges on deposits	1,678			1,575			1,471			1,467			1,319			103			359
Mortgage banking income	2,558			2,793			3,096			2,894			2,511			(235		)	47
Payroll and insurance income	1,698			1,487			1,418			1,495			1,528			211			170
SBA income	1,866			1,464			1,983			1,178			1,718			402			148
ATM income	860			826			864			832			735			34			125
Bank-owned life insurance income	467			526			465			484			467			(59		)	—
(Loss) gain on sale of investment securities	(1,481		)	3			13			12			42			(1,484		)	(1,523		)
Other	2,494			1,008			1,166			1,097			1,591			1,486			903
Total noninterest income	10,140			9,682			10,476			9,459			9,911			458			229
Noninterest Expense:
Salaries and employee benefits	26,418			21,457			21,912			22,057			19,554			4,961			6,864
Occupancy and equipment	3,576			3,187			3,329			3,280			3,069			389			507
Data processing	2,596			2,587			2,382			2,639			2,131			9			465
Legal and professional fees	973			700			898			1,805			1,702			273			(729		)
Merger-related expenses	2,588			135			372			2,235			3,507			2,453			(919		)
Marketing	693			342			403			664			430			351			263
Federal deposit insurance premiums and other regulatory fees	498			407			398			397			188			91			310
Loan collection costs and OREO activity	358			181			(213		)	(1,042		)	(127		)	177			485
Amortization of intangibles	721			701			697			696			516			20			205
Other	2,263			1,874			1,819			1,834			1,905			389			358
Total noninterest expense	40,684			31,571			31,997			34,565			32,875			9,113			7,809
Income Before Income Taxes	24,625			22,028			23,112			17,850			15,905			2,597			8,720
Income tax expense	19,248			7,592			7,909			6,292			5,578			11,656			13,670
Net Income	$	5,377		$	14,436		$	15,203		$	11,558		$	10,327		$	(9,059	)	$	(4,950	)

Net income allocated to participating securities	$	136		$	389		$	413		$	295		$	282		$	(253	)	$	(146	)
Net income allocated to common shareholders	5,241			14,047			14,790			11,263			10,045			(8,806		)	(4,804		)
Earnings Per Share
Basic	$	.14		$	.37		$	.39		$	.30		$	.28		$	(.23	)	$	(.14	)
Diluted	.14			.37			.39			.30			.28			(.23		)	(.14		)
Weighted Average Shares Outstanding
Basic	38,009,181			37,918,753			37,896,125			37,867,718			35,904,009			90,428			2,105,172
Diluted	38,068,619			37,963,141			37,942,483			37,954,585			36,009,098			105,478			2,059,521



State Bank Financial Corporation
4Q17 Financial Supplement: Table 4
Condensed Consolidated Income Statements
Year to Date (Unaudited)
	Years Ended December 31						Change
(Dollars in thousands, except per share amounts)	2017			2016			Change

Net Interest Income:
Interest income on loans	$	151,258		$	103,024		$	48,234
Accretion income on loans	34,096			43,310			(9,214		)
Interest income on invested funds	23,023			18,923			4,100
Interest expense	15,592			9,619			5,973
Net interest income	192,785			155,638			37,147
Provision for loan and lease losses (organic & PNCI loans)	6,181			3,596			2,585
Provision for loan and lease losses (purchased credit impaired loans)	(71		)	(3,359		)	3,288
Provision for loan and lease losses	6,110			237			5,873
Net interest income after provision for loan and lease losses	186,675			155,401			31,274
Noninterest Income:
Service charges on deposits	6,191			5,440			751
Mortgage banking income	11,341			12,319			(978		)
Payroll and insurance income	6,098			5,625			473
SBA income	6,491			6,458			33
ATM income	3,382			3,008			374
Bank-owned life insurance income	1,942			1,930			12
(Loss) gain on sale of investment securities	(1,453		)	489			(1,942		)
Other	5,765			4,032			1,733
Total noninterest income	39,757			39,301			456
Noninterest Expense:
Salaries and employee benefits	91,844			78,775			13,069
Occupancy and equipment	13,372			12,169			1,203
Data processing	10,204			8,514			1,690
Legal and professional fees	4,376			4,695			(319		)
Merger-related expenses	5,330			3,961			1,369
Marketing	2,102			2,216			(114		)
Federal deposit insurance premiums and other regulatory fees	1,700			1,744			(44		)
Loan collection costs and OREO activity	(716		)	(579		)	(137		)
Amortization of intangibles	2,815			2,102			713
Other	7,790			7,330			460
Total noninterest expense	138,817			120,927			17,890
Income Before Income Taxes	87,615			73,775			13,840
Income tax expense	41,041			26,184			14,857
Net Income	$	46,574		$	47,591		$	(1,017	)

Net income allocated to participating securities	$	1,222		$	1,303		$	(81	)
Net income allocated to common shareholders	45,352			46,288			(936		)

Earnings Per Share
Basic	$	1.20		$	1.29		$	(.09	)
Diluted	1.19			1.28			(.09		)
Weighted Average Shares Outstanding
Basic	37,923,320			35,931,528			1,991,792
Diluted	37,994,657			36,033,643			1,961,014



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

Composition of Loans
Organic loans (1):
Construction, land & land development	$	412,540	$	460,368	$	413,557	$	418,186	$	500,018	$	(47,828	)	$	(87,478	)
Other commercial real estate	949,594		915,727		960,762		885,570		754,790		33,867			194,804
Total commercial real estate	1,362,134		1,376,095		1,374,319		1,303,756		1,254,808		(13,961		)	107,326
Residential real estate	196,225		175,258		167,755		161,460		144,295		20,967			51,930
Owner-occupied real estate	260,273		261,784		244,637		251,703		256,317		(1,511		)	3,956
Commercial, financial & agricultural	430,205		363,551		355,629		336,257		327,381		66,654			102,824
Leases	52,396		66,765		73,103		62,603		71,724		(14,369		)	(19,328		)
Consumer	64,610		61,200		60,028		56,776		36,039		3,410			28,571
Total organic loans	2,365,843		2,304,653		2,275,471		2,172,555		2,090,564		61,190			275,279
Purchased non-credit impaired loans(2):
Construction, land & land development	25,908		30,670		31,083		43,787		51,208		(4,762		)	(25,300		)
Other commercial real estate	218,660		234,486		171,914		188,737		209,531		(15,826		)	9,129
Total commercial real estate	244,568		265,156		202,997		232,524		260,739		(20,588		)	(16,171		)
Residential real estate	96,529		112,244		117,449		137,699		144,596		(15,715		)	(48,067		)
Owner-occupied real estate	118,294		125,438		114,438		119,871		115,566		(7,144		)	2,728
Commercial, financial & agricultural	529,184		558,992		31,654		33,690		36,206		(29,808		)	492,978
Consumer	2,161		2,647		3,393		4,281		6,255		(486		)	(4,094		)
Total purchased non-credit impaired loans	990,736		1,064,477		469,931		528,065		563,362		(73,741		)	427,374
Purchased credit impaired loans (3):
Construction, land & land development	13,545		16,918		16,857		17,211		16,537		(3,373		)	(2,992		)
Other commercial real estate	86,748		102,934		46,078		60,664		60,742		(16,186		)	26,006
Total commercial real estate	100,293		119,852		62,935		77,875		77,279		(19,559		)	23,014
Residential real estate	40,332		42,190		45,513		49,728		54,507		(1,858		)	(14,175		)
Owner-occupied real estate	20,803		26,210		23,262		22,099		23,980		(5,407		)	(3,177		)
Commercial, financial & agricultural	14,051		15,139		3,617		4,153		4,533		(1,088		)	9,518
Consumer	135		269		271		305		347		(134		)	(212		)
Total purchased credit impaired loans	175,614		203,660		135,598		154,160		160,646		(28,046		)	14,968
Total loans	$	3,532,193	$	3,572,790	$	2,881,000	$	2,854,780	$	2,814,572	$	(40,597	)	$	717,621
Composition of Deposits
Noninterest-bearing demand deposits	$	1,191,106	$	1,179,698	$	1,009,509	$	944,838	$	984,419	$	11,408		$	206,687
Interest-bearing transaction accounts	688,150		619,156		591,038		599,858		664,350		68,994			23,800
Savings and money market deposits	1,626,238		1,680,922		1,373,686		1,393,711		1,292,867		(54,684		)	333,371
Time deposits	715,133		731,416		419,020		454,889		466,849		(16,283		)	248,284
Brokered and wholesale time deposits	22,508		29,893		59,439		16,479		22,680		(7,385		)	(172		)
Total deposits	$	4,243,135	$	4,241,085	$	3,452,692	$	3,409,775	$	3,431,165	$	2,050		$	811,970

(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 Bank of Commerce.

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

Allowance for loan and lease losses on organic loans
Beginning Balance	$	22,709		$	22,560		$	21,885		$	21,086		$	21,736		$	149		$	973
Charge-offs	(474		)	(912		)	(536		)	(540		)	(553		)	438			79
Recoveries	77			106			113			77			34			(29		)	43
Net (charge-offs) recoveries	(397		)	(806		)	(423		)	(463		)	(519		)	409			122
Provision for loan and lease losses	1,727			955			1,098			1,262			(131		)	772			1,858
Ending Balance	$	24,039		$	22,709		$	22,560		$	21,885		$	21,086		$	1,330		$	2,953

Allowance for loan and lease losses on purchased non-credit impaired loans
Beginning Balance	$	900		$	667		$	491		$	439		$	150		$	233		$	750
Charge-offs	(273		)	(152		)	(197		)	(48		)	(143		)	(121		)	(130		)
Recoveries	45			40			1			1			1			5			44
Net (charge-offs) recoveries	(228		)	(112		)	(196		)	(47		)	(142		)	(116		)	(86		)
Provision for loan and lease losses	323			345			372			99			431			(22		)	(108		)
Ending Balance	$	995		$	900		$	667		$	491		$	439		$	95		$	556

Allowance for loan and lease losses on purchased credit impaired loans
Beginning Balance	$	3,233		$	4,761		$	4,600		$	5,073		$	5,291		$	(1,528	)	$	(2,058	)
Charge-offs	(315		)	(643		)	(214		)	(114		)	(195		)	328			(120		)
Recoveries	—			—			—			—			—			—			—
Net (charge-offs) recoveries	(315		)	(643		)	(214		)	(114		)	(195		)	328			(120		)
Provision for loan and lease losses	798			(885		)	375			(359		)	(23		)	1,683			821
Ending Balance	$	3,716		$	3,233		$	4,761		$	4,600		$	5,073		$	483		$	(1,357	)

Nonperforming organic assets
Nonaccrual loans	$	6,656		$	5,483		$	1,422		$	6,114		$	6,234		$	1,173		$	422
Total nonperforming organic loans	7,222			5,483			1,422			6,114			6,234			1,739			988
Other real estate owned	153			—			23			232			282			153			(129		)
Total nonperforming organic assets	$	7,375		$	5,483		$	1,445		$	6,346		$	6,516		$	1,892		$	859

Nonperforming purchased non-credit impaired assets
Nonaccrual loans	$	5,821		$	5,614		$	5,141		$	4,098		$	3,381		$	207		$	2,440
Total nonperforming PNCI loans	5,821			5,614			5,141			4,098			3,381			207			2,440
Other real estate owned	—			—			—			—			—			—			—
Total nonperforming PNCI assets	$	5,821		$	5,614		$	5,141		$	4,098		$	3,381		$	207		$	2,440

Ratios for organic assets
Annualized QTD charge-offs (recoveries) on organic loans to average organic loans	.07		%	.14		%	.08		%	.09		%	.10		%	(.07)		%	(.03)		%
Nonperforming organic loans to organic loans	.31			.24			.06			.28			.30			.07			.01
Nonperforming organic assets to organic loans + OREO	.31			.24			.06			.29			.31			.07			—
Past due organic loans to organic loans	.20			.12			.09			.08			.06			.08			.14
Allowance for loan and lease losses on organic loans to organic loans	1.02			.99			.99			1.01			1.01			.03			.01



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

Ratios for purchased non-credit impaired loans
Annualized QTD charge-offs (recoveries) on PNCI loans to average PNCI loans	.09	%	.10	%	.16	%	.03	%	.31	%	(.01)	%	(.22)	%
Nonperforming PNCI loans to PNCI loans	.59		.53		1.09		.78		.60		.06		(.01	)
Nonperforming PNCI assets to PNCI loans + OREO	.59		.53		1.09		.78		.60		.06		(.01	)
Past due PNCI loans to PNCI loans	.40		.48		1.05		.90		.68		(.08	)	(.28	)
Allowance for loan and lease losses on PNCI loans to PNCI loans	.10		.08		.14		.09		.08		.02		.02

Ratios for purchased credit impaired loans (1)
Annualized QTD charge-offs (recoveries) on PCI loans to average PCI loans	.66	%	1.95	%	.60	%	.30	%	.63	%	(1.29)	%	.03	%
Past due PCI loans to PCI loans	5.84		8.12		10.26		10.68		8.92		(2.28	)	(3.08	)
Allowance for loan and lease losses on PCI loans to PCI loans	2.12		1.59		3.51		2.98		3.16		.53		(1.04	)

(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
4Q17 Financial Supplement: Table 7
Condensed Consolidated Average Balances and Yield Analysis
Quarterly (Unaudited)
																4Q17 change vs
(Dollars in thousands)	4Q17			3Q17			2Q17			1Q17			4Q16			3Q17			4Q16
Average Balances
Interest-bearing deposits in other financial institutions and federal funds sold	$	168,223		$	108,546		$	73,862		$	85,720		$	82,797		$	59,677		$	85,426
Investment securities	924,933			913,898			947,300			961,913			911,025			11,035			13,908
Loans, excluding purchased credit impaired (1)	3,413,159			2,762,479			2,762,996			2,692,517			2,307,794			650,680			1,105,365
Purchased credit impaired loans	190,323			130,708			142,419			154,054			123,718			59,615			66,605
Total earning assets	4,696,638			3,915,631			3,926,577			3,894,204			3,425,334			781,007			1,271,304
Total nonearning assets	285,813			263,100			274,266			287,757			211,210			22,713			74,603
Total assets	4,982,451			4,178,731			4,200,843			4,181,961			3,636,544			803,720			1,345,907
Interest-bearing transaction accounts	664,938			580,090			585,343			602,378			575,977			84,848			88,961
Savings & money market deposits	1,685,292			1,383,326			1,380,586			1,388,876			1,118,548			301,966			566,744
Time deposits	724,578			420,192			437,475			456,811			385,146			304,386			339,432
Brokered and wholesale time deposits	25,911			49,675			38,353			19,926			22,885			(23,764		)	3,026
Other borrowings	35,353			57,988			119,652			81,344			52,555			(22,635		)	(17,202		)
Total interest-bearing liabilities	3,136,072			2,491,271			2,561,409			2,549,335			2,155,111			644,801			980,961
Noninterest-bearing deposits	1,147,834			1,004,046			972,074			955,515			872,954			143,788			274,880
Other liabilities	53,136			44,794			40,066			60,102			48,918			8,342			4,218
Shareholders’ equity	645,409			638,620			627,294			617,009			559,561			6,789			85,848
Total liabilities and shareholders' equity	4,982,451			4,178,731			4,200,843			4,181,961			3,636,544			803,720			1,345,907

Interest Margins (2)
Interest-bearing deposits in other financial institutions and federal funds sold	.86		%	.80		%	.50		%	.44		%	.31		%	.06		%	.55		%
Investment securities, tax-equivalent basis	2.43			2.42			2.39			2.26			2.07			.01			.36
Loans, excluding purchased credit impaired, tax-equivalent basis (3)	5.47			5.11			5.08			5.15			4.63			.36			.84
Purchased credit impaired loans	22.24			19.79			25.99			20.21			33.03			2.45			(10.79		)
Total earning assets	5.39		%	4.85		%	5.11		%	4.93		%	4.87		%	.54		%	.52		%
Interest-bearing transaction accounts	.13			.13			.12			.12			.12			—			.01
Savings & money market deposits	.80			.63			.61			.60			.59			.17			.21
Time deposits	1.04			.72			.69			.72			.72			.32			.32
Brokered and wholesale time deposits	1.15			1.05			1.05			1.06			.85			.10			.30
Other borrowings	.52			.76			.82			.65			.45			(.24		)	.07
Total interest-bearing liabilities	.71		%	.54		%	.53		%	.52		%	.49		%	.17		%	.22		%
Net interest spread	4.68		%	4.31		%	4.58		%	4.41		%	4.38		%	.37		%	.30		%
Net interest margin	4.91		%	4.51		%	4.76		%	4.59		%	4.56		%	.40		%	.35		%
Net interest margin contribution from accretion income on loans	.90		%	.66		%	.94		%	.80		%	1.19		%	.24		%	(.29		)%

(1) Includes average nonaccrual loans of $11.4 million for 4Q17, $8.0 million for 3Q17, $9.3 million for 2Q17, $9.9 million for 1Q17, and $8.4 million for 4Q16.

(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 $128,000 for 4Q17, $177,000 for 3Q17, $131,000 for 2Q17, $140,000 for 1Q17, and $142,000 for 4Q16.



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

Book value per common share reconciliation
Book value per common share (GAAP)	$	16.45		$	16.48		$	16.23		$	15.96		$	15.80
Effect of goodwill and other intangibles	(2.45		)	(2.47		)	(2.29		)	(2.30		)	(2.32		)
Tangible book value per common share	$	14.00		$	14.01		$	13.94		$	13.66		$	13.48

Average tangible equity reconciliation
Average equity (GAAP)	$	645,409		$	638,620		$	627,294		$	617,009		$	559,561
Effect of average goodwill and other intangibles	(95,845		)	(88,618		)	(89,141		)	(89,406		)	(44,579		)
Average tangible equity	$	549,564		$	550,002		$	538,153		$	527,603		$	514,982

(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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