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	a1q18earningspresentatio.htm
8-K - 8-K - STATE BANK FINANCIAL CORP	a8kcoverpage033118.htm

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

State Bank Financial Corporation Reports First Quarter 2018 Financial Results


▪	Record net income of $17.4 million, or $.44 per diluted share, in the first quarter of 2018


▪	Return on assets of 1.45% and return on equity of 10.96%


▪	Loan growth of $104.4 million, or 12.6% annualized, excluding purchased credit impaired loans


▪	Successful conversion of AloStar Bank of Commerce's core system


▪	Dividend increased 43% to $.20 per common share, a $.06 per share increase

ATLANTA, GA, April 26, 2018 - State Bank Financial Corporation (NASDAQ: STBZ) today announced unaudited financial results for the first quarter of 2018. Net income for the first quarter of 2018 was $17.4 million, compared to $5.4 million in the fourth quarter of 2017, which included the impact of a $10.7 million non-cash tax expense related to the revaluation of our net deferred tax assets, and $11.6 million in the first quarter of 2017. Fully diluted earnings per share were $.44 in the first quarter of 2018, compared to $.14 in the fourth quarter of 2017 and $.30 in the first quarter of 2017.

Tom Wiley, Vice Chairman and CEO, commented, “Strong loan growth, disciplined expense management and completion of the AloStar systems conversion led to a fast start to 2018. I am proud of our team as we successfully completed the conversion without losing focus on production. We expect the benefits of our merger with AloStar to grow during the year. Quarterly net income of $17.4 million reflects the benefit of the newly acquired lines of business and the reduction in income taxes.”

Operating Highlights

Interest income on loans improved to $48.4 million in the first quarter of 2018, a $1.5 million increase from the fourth quarter of 2017 and a $14.4 million increase from the first quarter of 2017. Net interest income of $54.9 million in the first quarter of 2018 decreased from $58.0 million in the fourth quarter of 2017 and increased from $44.0 million in the first quarter of 2017. Accretion income on loans was $5.9 million in the first quarter of 2018, down from $10.7 million in the fourth quarter of 2017 and $7.7 million in the first quarter of 2017. The $4.7 million linked-quarter decrease was primarily due to unexpected acceleration of certain purchased credit impaired loan payoffs in the fourth quarter of 2017. As of March 31, 2018, approximately $58 million of accretable discount remains to be recognized as loan accretion income.

Noninterest income was $10.5 million in the first quarter of 2018, compared to $10.1 million in the fourth quarter of 2017 and $9.5 million in the first quarter of 2017. Revenues from mortgage banking and payroll and insurance increased $367,000 and $62,000, respectively, in the first quarter of 2018, compared to the fourth quarter of 2017, while SBA income decreased $674,000.

Total noninterest expense for the first quarter of 2018 was $39.3 million, compared to $40.7 million in the fourth quarter of 2017 and $34.6 million in the first quarter of 2017. The $1.4 million linked-quarter decrease was primarily due to a $1.3 million decrease in merger-related expenses related to the AloStar Bank of Commerce acquisition. Merger-related expenses were $1.3 million for the first quarter of 2018.

Financial Condition

Total assets at March 31, 2018, were $4.9 billion, down from $5.0 billion at December 31, 2017. Total loans were $3.6 billion at March 31, 2018, up $86.3 million from the fourth quarter of 2017. Period-end organic loans increased to $2.5 billion at March 31, 2018, an increase of $149.5 million from the fourth quarter of 2017. Purchased non-credit impaired loans decreased to $945.7 million at March 31, 2018, a $45.1 million linked-quarter decline. Purchased credit impaired loans decreased to $157.5 million at March 31, 2018, an $18.1 million linked-quarter decline.

Past due organic and purchased non-credit impaired loans were .22% and .45% of their respective portfolios at March 31, 2018. The provision for loan losses on organic and purchased non-credit impaired loans was $2.7 million in the first quarter of 2018 and was primarily attributable to organic loan growth, net charge-offs 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 first quarter of 2018.

Total deposits at March 31, 2018, were $4.2 billion, down $58.7 million from December 31, 2017, as the seasonal cash operating cycle of certain State Bank clients led to a decline of $156.1 million in period-end transaction accounts. Noninterest-bearing demand deposits represented 26.0% of total deposits as of March 31, 2018. Average noninterest-bearing demand deposits were $1.1 billion, a $65.3 million decrease from the fourth quarter of 2017 and a $127.0 million increase from the first quarter of 2017.

Joe Evans, Chairman of State Bank Financial, commented, “We began 2018 with a 43% increase in our quarterly dividend and are pleased with the first quarter’s solid growth in earnings and loans. Our focus remains on long term growth, a best in class client experience, operational efficiency and shareholder return. The economic backdrop in our markets remains favorable and creates great opportunity for continued strong performance in 2018.”

Tangible book value per share was $14.15 at the end of the first quarter of 2018. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 11.69% and a Tier I risk-based capital ratio of 12.44%.

Detailed Results

Supplemental tables displaying financial results for the first quarter of 2018 and the previous four quarters 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 1Q18 Financial Supplement: Table 7, 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: 1.800.772.4206

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 of our website at www.statebt.com. A slide presentation for today’s call is also available in the Investors section of our website.

About State Bank Financial Corporation

State Bank Financial Corporation (NASDAQ: STBZ), with approximately $4.9 billion in assets as of March 31, 2018, 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,” “focus,” “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 to be recognized as loan accretion income, expected benefits of our merger with AloStar Bank of Commerce, our focus on long term growth, best in class client experience, operational efficiency and shareholder return, our belief that our markets remain favorable and our prospects for continued strong 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 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
1Q18 Financial Supplement: Table 1
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
													1Q18 change vs
(Dollars in thousands, except per share amounts)	1Q18		4Q17		3Q17			2Q17		1Q17			4Q17			1Q17

Income Statement Highlights
Interest income on loans	$	48,444	$	46,926	$	35,400		$	34,872	$	34,060		$	1,518		$	14,384
Accretion income on loans	5,946		10,671		6,520			9,228		7,677			(4,725		)	(1,731		)
Interest income on invested funds	6,171		6,034		5,782			5,747		5,460			137			711
Total interest income	60,561		63,631		47,702			49,847		47,197			(3,070		)	13,364
Interest expense	5,705		5,614		3,370			3,369		3,239			91			2,466
Net interest income	54,856		58,017		44,332			46,478		43,958			(3,161		)	10,898
Provision for loan and lease losses (organic & PNCI loans)	2,650		2,050		1,300			1,470		1,361			600			1,289
Provision for loan and lease losses (purchased credit impaired loans)	558		798		(885		)	375		(359		)	(240		)	917
Provision for loan and lease losses	3,208		2,848		415			1,845		1,002			360			2,206
Total noninterest income	10,461		10,140		9,682			10,476		9,459			321			1,002
Total noninterest expense	39,268		40,684		31,571			31,997		34,565			(1,416		)	4,703
Income before income taxes	22,841		24,625		22,028			23,112		17,850			(1,784		)	4,991
Income tax expense	5,476		19,248		7,592			7,909		6,292			(13,772		)	(816		)
Net income	$	17,365	$	5,377	$	14,436		$	15,203	$	11,558		$	11,988		$	5,807

Common Share Data
Basic earnings per share	$	.45	$	.14	$	.37		$	.39	$	.30		$	.31		$	.15
Diluted earnings per share	.44		.14		.37			.39		.30			.30			.14
Cash dividends declared per share	.20		.14		.14			.14		.14			.06			.06
Book value per share	16.58		16.45		16.48			16.23		15.96			.13			.62
Tangible book value per share (1)	14.15		14.00		14.01			13.94		13.66			.15			.49
Market price per share (quarter end)	30.01		29.84		28.65			27.12		26.12			.17			3.89

Common Shares Outstanding
Common stock	39,003,412		38,992,163		38,991,022			38,967,972		38,870,424			11,249			132,988
Weighted average shares outstanding:
Basic	38,032,007		38,009,181		37,918,753			37,896,125		37,867,718			22,826			164,289
Diluted	38,070,554		38,068,619		37,963,141			37,942,483		37,954,585			1,935			115,969

Average Balance Sheet Highlights
Loans	$	3,598,543	$	3,603,482	$	2,893,187		$	2,905,415	$	2,846,571		$	(4,939	)	$	751,972
Assets	4,860,730		4,982,451		4,178,731			4,200,843		4,181,961			(121,721		)	678,769
Deposits	4,084,844		4,248,553		3,437,329			3,413,831		3,423,506			(163,709		)	661,338
Equity	642,787		645,409		638,620			627,294		617,009			(2,622		)	25,778
Tangible equity (1)	547,620		549,564		550,002			538,153		527,603			(1,944		)	20,017



State Bank Financial Corporation
1Q18 Financial Supplement: Table 1 (continued)
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
											1Q18 change vs
(Dollars in thousands, except per share amounts)	1Q18		4Q17		3Q17		2Q17		1Q17		4Q17		1Q17

Key Metrics (2)
Return on average assets	1.45	%	.43	%	1.37	%	1.45	%	1.12	%	1.02	%	.33	%
Return on average equity	10.96		3.31		8.97		9.72		7.60		7.65		3.36
Yield on earning assets	5.36		5.39		4.85		5.11		4.93		(.03	)	.43
Cost of funds	.55		.52		.38		.38		.37		.03		.18
Rate on interest-bearing liabilities	.75		.71		.54		.53		.52		.04		.23
Net interest margin	4.86		4.91		4.51		4.76		4.59		(.05	)	.27
Leverage ratio (3)	11.69		11.24		13.37		13.23		13.04		.45		(1.35	)
Tier I risk-based capital ratio (3)	12.44		12.61		12.30		15.01		14.74		(.17	)	(2.30	)
Total risk-based capital ratio (3)	13.14		13.28		12.91		15.79		15.49		(.14	)	(2.35	)
Efficiency ratio (4)	60.12		59.69		58.45		56.18		64.71		.43		(4.59	)
Average loans to average deposits	88.09		84.82		84.17		85.11		83.15		3.27		4.94
Noninterest-bearing deposits to total deposits	26.04		28.07		27.82		29.24		27.71		(2.03	)	(1.67	)

(1) Denotes a non-GAAP financial measure. See Reconciliation of Non-GAAP Measures (Table 7) 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
1Q18 Financial Supplement: Table 2
Condensed Consolidated Balance Sheets
Quarterly (Unaudited)
																1Q18 change vs
(Dollars in thousands)	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17			1Q17

Assets
Cash and amounts due from depository institutions	$	13,113		$	17,438		$	14,235		$	11,284		$	12,101		$	(4,325	)	$	1,012
Interest-bearing deposits in other financial institutions	59,620			211,142			251,115			126,390			62,222			(151,522		)	(2,602		)
Federal funds sold	9,000			2,297			16,889			—			—			6,703			9,000
Cash and cash equivalents	81,733			230,877			282,239			137,674			74,323			(149,144		)	7,410
Equity securities	1,515			1,515			1,515			1,515			1,546			—			(31		)
Debt securities available-for-sale	863,697			872,455			919,248			846,280			894,751			(8,758		)	(31,054		)
Debt securities held-to-maturity	27,558			32,852			57,867			63,104			67,053			(5,294		)	(39,495		)
Loans	3,618,521			3,532,193			3,572,790			2,881,000			2,854,780			86,328			763,741
Allowance for loan and lease losses	(31,317		)	(28,750		)	(26,842		)	(27,988		)	(26,976		)	(2,567		)	(4,341		)
Loans, net	3,587,204			3,503,443			3,545,948			2,853,012			2,827,804			83,761			759,400
Loans held-for-sale	47,482			36,211			47,743			48,895			51,380			11,271			(3,898		)
Other real estate owned	4,207			895			1,271			2,407			3,759			3,312			448
Premises and equipment, net	52,410			51,794			52,120			51,170			51,535			616			875
Goodwill	84,564			84,564			84,564			77,476			77,084			—			7,480
Other intangibles, net	10,384			11,034			11,755			11,599			12,054			(650		)	(1,670		)
SBA servicing rights	4,003			4,069			3,950			3,828			3,547			(66		)	456
Bank-owned life insurance	67,768			67,313			66,846			66,320			65,855			455			1,913
Other assets	59,772			61,560			73,417			70,697			71,990			(1,788		)	(12,218		)
Total assets	$	4,892,297		$	4,958,582		$	5,148,483		$	4,233,977		$	4,202,681		$	(66,285	)	$	689,616
Liabilities and Shareholders’ Equity
Noninterest-bearing deposits	$	1,089,579		$	1,191,106		$	1,179,698		$	1,009,509		$	944,838		$	(101,527	)	$	144,741
Interest-bearing deposits	3,094,853			3,052,029			3,061,387			2,443,183			2,464,937			42,824			629,916
Total deposits	4,184,432			4,243,135			4,241,085			3,452,692			3,409,775			(58,703		)	774,657
Federal funds purchased and securities sold under agreements to repurchase	9,565			25,209			25,499			25,256			25,056			(15,644		)	(15,491		)
FHLB borrowings	15,000			—			—			80,000			100,000			15,000			(85,000		)
Notes payable	398			398			398			398			398			—			—
Other liabilities	36,248			48,289			238,911			43,294			47,169			(12,041		)	(10,921		)
Total liabilities	4,245,643			4,317,031			4,505,893			3,601,640			3,582,398			(71,388		)	663,245
Total shareholders’ equity	646,654			641,551			642,590			632,337			620,283			5,103			26,371
Total liabilities and shareholders’ equity	$	4,892,297		$	4,958,582		$	5,148,483		$	4,233,977		$	4,202,681		$	(66,285	)	$	689,616

Capital Ratios (1)
Average equity to average assets	13.22		%	12.95		%	15.28		%	14.93		%	14.75		%	.27		%	(1.53		)%
Leverage ratio	11.69			11.24			13.37			13.23			13.04			.45			(1.35		)
CET1 risk-based capital ratio	12.44			12.61			12.30			15.01			14.74			(.17		)	(2.30		)
Tier I risk-based capital ratio	12.44			12.61			12.30			15.01			14.74			(.17		)	(2.30		)
Total risk-based capital ratio	13.14			13.28			12.91			15.79			15.49			(.14		)	(2.35		)

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



State Bank Financial Corporation
1Q18 Financial Supplement: Table 3
Condensed Consolidated Income Statements
Quarterly (Unaudited)
																1Q18 change vs
(Dollars in thousands, except per share amounts)	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17			1Q17

Net Interest Income:
Interest income on loans	$	48,444		$	46,926		$	35,400		$	34,872		$	34,060		$	1,518		$	14,384
Accretion income on loans	5,946			10,671			6,520			9,228			7,677			(4,725		)	(1,731		)
Interest income on invested funds	6,171			6,034			5,782			5,747			5,460			137			711
Interest expense	5,705			5,614			3,370			3,369			3,239			91			2,466
Net interest income	54,856			58,017			44,332			46,478			43,958			(3,161		)	10,898
Provision for loan and lease losses (organic & PNCI loans)	2,650			2,050			1,300			1,470			1,361			600			1,289
Provision for loan and lease losses (purchased credit impaired loans)	558			798			(885		)	375			(359		)	(240		)	917
Provision for loan and lease losses	3,208			2,848			415			1,845			1,002			360			2,206
Net interest income after provision for loan and lease losses	51,648			55,169			43,917			44,633			42,956			(3,521		)	8,692
Noninterest Income:
Service charges on deposits	1,625			1,678			1,575			1,471			1,467			(53		)	158
Mortgage banking income	2,925			2,558			2,793			3,096			2,894			367			31
Payroll and insurance income	1,760			1,698			1,487			1,418			1,495			62			265
SBA income	1,192			1,866			1,464			1,983			1,178			(674		)	14
ATM income	870			860			826			864			832			10			38
Bank-owned life insurance income	455			467			526			465			484			(12		)	(29		)
(Loss) gain on sale of investment securities	—			(1,481		)	3			13			12			1,481			(12		)
Other	1,634			2,494			1,008			1,166			1,097			(860		)	537
Total noninterest income	10,461			10,140			9,682			10,476			9,459			321			1,002
Noninterest Expense:
Salaries and employee benefits	26,042			25,089			20,701			21,178			21,388			953			4,654
Occupancy and equipment	3,496			3,576			3,187			3,329			3,280			(80		)	216
Data processing	2,896			2,596			2,587			2,382			2,639			300			257
Legal and professional fees	739			973			700			898			1,805			(234		)	(1,066		)
Merger-related expenses	1,264			2,588			135			372			2,235			(1,324		)	(971		)
Marketing	425			693			342			403			664			(268		)	(239		)
Federal deposit insurance premiums and other regulatory fees	500			498			407			398			397			2			103
Loan collection costs and OREO activity	166			358			181			(213		)	(1,042		)	(192		)	1,208
Amortization of intangibles	651			721			701			697			696			(70		)	(45		)
Other	3,089			3,592			2,630			2,553			2,503			(503		)	586
Total noninterest expense	39,268			40,684			31,571			31,997			34,565			(1,416		)	4,703
Income Before Income Taxes	22,841			24,625			22,028			23,112			17,850			(1,784		)	4,991
Income tax expense	5,476			19,248			7,592			7,909			6,292			(13,772		)	(816		)
Net Income	$	17,365		$	5,377		$	14,436		$	15,203		$	11,558		$	11,988		$	5,807

Net income allocated to participating securities	$	435		$	136		$	389		$	413		$	295		$	299		$	140
Net income allocated to common shareholders	16,930			5,241			14,047			14,790			11,263			11,689			5,667

Effective Tax Rate	23.97		%	78.16		%	34.47		%	34.22		%	35.25		%	(54.19		)%	(11.28		)%
Earnings Per Share
Basic	$	.45		$	.14		$	.37		$	.39		$	.30		$	.31		$	.15
Diluted	.44			.14			.37			.39			.30			.30			.14
Weighted Average Shares Outstanding
Basic	38,032,007			38,009,181			37,918,753			37,896,125			37,867,718			22,826			164,289
Diluted	38,070,554			38,068,619			37,963,141			37,942,483			37,954,585			1,935			115,969



State Bank Financial Corporation
1Q18 Financial Supplement: Table 4
Condensed Consolidated Composition of Loans and Deposits at Period Ends
Quarterly (Unaudited)
											1Q18 change vs
(Dollars in thousands)	1Q18		4Q17		3Q17		2Q17		1Q17		4Q17			1Q17

Composition of Loans
Organic loans (1):
Construction, land & land development	$	442,942	$	412,540	$	460,368	$	413,557	$	418,186	$	30,402		$	24,756
Other commercial real estate	941,581		949,594		915,727		960,762		885,570		(8,013		)	56,011
Total commercial real estate	1,384,523		1,362,134		1,376,095		1,374,319		1,303,756		22,389			80,767
Residential real estate	208,960		196,225		175,258		167,755		161,460		12,735			47,500
Owner-occupied real estate	253,059		260,273		261,784		244,637		251,703		(7,214		)	1,356
Commercial, financial & agricultural	562,566		430,205		363,551		355,629		336,257		132,361			226,309
Leases	43,787		52,396		66,765		73,103		62,603		(8,609		)	(18,816		)
Consumer	62,423		64,610		61,200		60,028		56,776		(2,187		)	5,647
Total organic loans	2,515,318		2,365,843		2,304,653		2,275,471		2,172,555		149,475			342,763
Purchased non-credit impaired loans(2):
Construction, land & land development	24,352		25,908		30,670		31,083		43,787		(1,556		)	(19,435		)
Other commercial real estate	226,893		218,660		234,486		171,914		188,737		8,233			38,156
Total commercial real estate	251,245		244,568		265,156		202,997		232,524		6,677			18,721
Residential real estate	82,416		96,529		112,244		117,449		137,699		(14,113		)	(55,283		)
Owner-occupied real estate	94,900		118,294		125,438		114,438		119,871		(23,394		)	(24,971		)
Commercial, financial & agricultural	515,327		529,184		558,992		31,654		33,690		(13,857		)	481,637
Consumer	1,791		2,161		2,647		3,393		4,281		(370		)	(2,490		)
Total purchased non-credit impaired loans	945,679		990,736		1,064,477		469,931		528,065		(45,057		)	417,614
Purchased credit impaired loans (3):
Construction, land & land development	12,802		13,545		16,918		16,857		17,211		(743		)	(4,409		)
Other commercial real estate	77,838		86,748		102,934		46,078		60,664		(8,910		)	17,174
Total commercial real estate	90,640		100,293		119,852		62,935		77,875		(9,653		)	12,765
Residential real estate	36,747		40,332		42,190		45,513		49,728		(3,585		)	(12,981		)
Owner-occupied real estate	18,593		20,803		26,210		23,262		22,099		(2,210		)	(3,506		)
Commercial, financial & agricultural	11,436		14,051		15,139		3,617		4,153		(2,615		)	7,283
Consumer	108		135		269		271		305		(27		)	(197		)
Total purchased credit impaired loans	157,524		175,614		203,660		135,598		154,160		(18,090		)	3,364
Total loans	$	3,618,521	$	3,532,193	$	3,572,790	$	2,881,000	$	2,854,780	$	86,328		$	763,741
Composition of Deposits
Noninterest-bearing demand deposits	$	1,089,579	$	1,191,106	$	1,179,698	$	1,009,509	$	944,838	$	(101,527	)	$	144,741
Interest-bearing transaction accounts	633,542		688,150		619,156		591,038		599,858		(54,608		)	33,684
Savings and money market deposits	1,602,908		1,626,238		1,680,922		1,373,686		1,393,711		(23,330		)	209,197
Time deposits	713,869		715,133		731,416		419,020		454,889		(1,264		)	258,980
Brokered and wholesale time deposits	144,534		22,508		29,893		59,439		16,479		122,026			128,055
Total deposits	$	4,184,432	$	4,243,135	$	4,241,085	$	3,452,692	$	3,409,775	$	(58,703	)	$	774,657

(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
1Q18 Financial Supplement: Table 5
Condensed Consolidated Asset Quality Data
Quarterly (Unaudited)
																1Q18 change vs
(Dollars in thousands)	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17			1Q17

Allowance for loan and lease losses on organic loans
Beginning Balance	$	24,039		$	22,709		$	22,560		$	21,885		$	21,086		$	1,330		$	2,953
Charge-offs	(664		)	(474		)	(912		)	(536		)	(540		)	(190		)	(124		)
Recoveries	133			77			106			113			77			56			56
Net (charge-offs) recoveries	(531		)	(397		)	(806		)	(423		)	(463		)	(134		)	(68		)
Provision for loan and lease losses	1,374			1,727			955			1,098			1,262			(353		)	112
Ending Balance	$	24,882		$	24,039		$	22,709		$	22,560		$	21,885		$	843		$	2,997

Allowance for loan and lease losses on purchased non-credit impaired loans
Beginning Balance	$	995		$	900		$	667		$	491		$	439		$	95		$	556
Charge-offs	(40		)	(273		)	(152		)	(197		)	(48		)	233			8
Recoveries	18			45			40			1			1			(27		)	17
Net (charge-offs) recoveries	(22		)	(228		)	(112		)	(196		)	(47		)	206			25
Provision for loan and lease losses	1,276			323			345			372			99			953			1,177
Ending Balance	$	2,249		$	995		$	900		$	667		$	491		$	1,254		$	1,758

Allowance for loan and lease losses on purchased credit impaired loans
Beginning Balance	$	3,716		$	3,233		$	4,761		$	4,600		$	5,073		$	483		$	(1,357	)
Charge-offs	(88		)	(315		)	(643		)	(214		)	(114		)	227			26
Recoveries	—			—			—			—			—			—			—
Net (charge-offs) recoveries	(88		)	(315		)	(643		)	(214		)	(114		)	227			26
Provision for loan and lease losses	558			798			(885		)	375			(359		)	(240		)	917
Ending Balance	$	4,186		$	3,716		$	3,233		$	4,761		$	4,600		$	470		$	(414	)

Nonperforming organic assets
Nonaccrual loans	$	9,186		$	6,656		$	5,482		$	1,422		$	6,114		$	2,530		$	3,072
Accruing TDRs	556			566			—			—			—			(10		)	556
Total nonperforming organic loans	9,742			7,222			5,482			1,422			6,114			2,520			3,628
Other real estate owned	3,231			153			—			23			232			3,078			2,999
Total nonperforming organic assets	$	12,973		$	7,375		$	5,482		$	1,445		$	6,346		$	5,598		$	6,627

Nonperforming purchased non-credit impaired assets
Nonaccrual loans	$	6,356		$	5,821		$	5,615		$	5,141		$	4,098		$	535		$	2,258
Accruing TDRs	2,769			—			—			—			—			2,769			2,769
Total nonperforming PNCI loans	9,125			5,821			5,615			5,141			4,098			3,304			5,027
Other real estate owned	—			—			—			—			—			—			—
Total nonperforming PNCI assets	$	9,125		$	5,821		$	5,615		$	5,141		$	4,098		$	3,304		$	5,027

Ratios for organic assets
Annualized QTD charge-offs (recoveries) on organic loans to average organic loans	.09		%	.07		%	.14		%	.08		%	.09		%	.02		%	—		%
Nonperforming organic loans to organic loans	.39			.31			.24			.06			.28			.08			.11
Nonperforming organic assets to organic loans + OREO	.52			.31			.24			.06			.29			.21			.23
Past due organic loans to organic loans	.22			.20			.12			.09			.08			.02			.14
Allowance for loan and lease losses on organic loans to organic loans	.99			1.02			.99			.99			1.01			(.03		)	(.02		)



State Bank Financial Corporation
1Q18 Financial Supplement: Table 5 (continued)
Condensed Consolidated Asset Quality Data
Quarterly (Unaudited)
											1Q18 change vs
(Dollars in thousands)	1Q18		4Q17		3Q17		2Q17		1Q17		4Q17		1Q17

Ratios for purchased non-credit impaired loans
Annualized QTD charge-offs (recoveries) on PNCI loans to average PNCI loans	.01	%	.09	%	.10	%	.16	%	.03	%	(.08)	%	(.02)	%
Nonperforming PNCI loans to PNCI loans	.96		.59		.53		1.09		.78		.37		.18
Nonperforming PNCI assets to PNCI loans + OREO	.96		.59		.53		1.09		.78		.37		.18
Past due PNCI loans to PNCI loans	.45		.40		.48		1.05		.90		.05		(.45	)
Allowance for loan and lease losses on PNCI loans to PNCI loans	.24		.10		.08		.14		.09		.14		.15

Ratios for purchased credit impaired loans (1)
Annualized QTD charge-offs (recoveries) on PCI loans to average PCI loans	.21	%	.66	%	1.95	%	.60	%	.30	%	(.45)	%	(.09)	%
Past due PCI loans to PCI loans	6.47		5.84		8.12		10.26		10.68		.63		(4.21	)
Allowance for loan and lease losses on PCI loans to PCI loans	2.66		2.12		1.59		3.51		2.98		.54		(.32	)

(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
1Q18 Financial Supplement: Table 6
Condensed Consolidated Average Balances and Yield Analysis
Quarterly (Unaudited)
																1Q18 change vs
(Dollars in thousands)	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17			1Q17
Average Balances
Interest-bearing deposits in other financial institutions and federal funds sold	$	93,692		$	168,223		$	108,546		$	73,862		$	85,720		$	(74,531	)	$	7,972
Investment securities	893,685			924,933			913,898			947,300			961,913			(31,248		)	(68,228		)
Loans, excluding purchased credit impaired (1)	3,430,599			3,413,159			2,762,479			2,762,996			2,692,517			17,440			738,082
Purchased credit impaired loans	167,944			190,323			130,708			142,419			154,054			(22,379		)	13,890
Total earning assets	4,585,920			4,696,638			3,915,631			3,926,577			3,894,204			(110,718		)	691,716
Total nonearning assets	274,810			285,813			263,100			274,266			287,757			(11,003		)	(12,947		)
Total assets	4,860,730			4,982,451			4,178,731			4,200,843			4,181,961			(121,721		)	678,769
Interest-bearing transaction accounts	626,298			664,938			580,090			585,343			602,378			(38,640		)	23,920
Savings & money market deposits	1,594,724			1,685,292			1,383,326			1,380,586			1,388,876			(90,568		)	205,848
Time deposits	715,514			724,578			420,192			437,475			456,811			(9,064		)	258,703
Brokered and wholesale time deposits	65,749			25,911			49,675			38,353			19,926			39,838			45,823
Other borrowings	85,788			35,353			57,988			119,652			81,344			50,435			4,444
Total interest-bearing liabilities	3,088,073			3,136,072			2,491,271			2,561,409			2,549,335			(47,999		)	538,738
Noninterest-bearing deposits	1,082,559			1,147,834			1,004,046			972,074			955,515			(65,275		)	127,044
Other liabilities	47,311			53,136			44,794			40,066			60,102			(5,825		)	(12,791		)
Shareholders’ equity	642,787			645,409			638,620			627,294			617,009			(2,622		)	25,778
Total liabilities and shareholders' equity	4,860,730			4,982,451			4,178,731			4,200,843			4,181,961			(121,721		)	678,769

Interest Margins (2)
Interest-bearing deposits in other financial institutions and federal funds sold	.80		%	.86		%	.80		%	.50		%	.44		%	(.06		)%	.36		%
Investment securities, tax-equivalent basis	2.72			2.43			2.42			2.39			2.26			.29			.46
Loans, excluding purchased credit impaired, tax-equivalent basis (3)	5.73			5.47			5.11			5.08			5.15			.26			.58
Purchased credit impaired loans	14.36			22.24			19.79			25.99			20.21			(7.88		)	(5.85		)
Total earning assets	5.36		%	5.39		%	4.85		%	5.11		%	4.93		%	(.03		)%	.43		%
Interest-bearing transaction accounts	.14			.13			.13			.12			.12			.01			.02
Savings & money market deposits	.76			.80			.63			.61			.60			(.04		)	.16
Time deposits	1.09			1.04			.72			.69			.72			.05			.37
Brokered and wholesale time deposits	1.91			1.15			1.05			1.05			1.06			.76			.85
Other borrowings	1.31			.52			.75			.82			.65			.79			.66
Total interest-bearing liabilities	.75		%	.71		%	.54		%	.53		%	.52		%	.04		%	.23		%
Net interest spread	4.61		%	4.68		%	4.31		%	4.58		%	4.41		%	(.07		)%	.20		%
Net interest margin	4.86		%	4.91		%	4.51		%	4.76		%	4.59		%	(.05		)%	.27		%
Net interest margin contribution from accretion income on loans	.53		%	.90		%	.66		%	.94		%	.80		%	(.37		)%	(.27		)%

(1) Includes average nonaccrual loans of $12.9 million for 1Q18, $11.4 million for 4Q17, $8.0 million for 3Q17, $9.3 million for 2Q17, and $9.9 million for 1Q17.

(2) Interest income or expense annualized for the applicable period.

(3) Reflects taxable equivalent adjustments using the federal statutory tax rate of 21% for all periods beginning on or after January 1, 2018 and 35% for all periods prior to January 1, 2018 in adjusting tax-exempt loan interest income to a fully taxable basis. The taxable equivalent adjustments included above amount to $57,000 for 1Q18, $128,000 for 4Q17, $177,000 for 3Q17, $131,000 for 2Q17, and $140,000 for 1Q17.



State Bank Financial Corporation
1Q18 Financial Supplement: Table 7
Reconciliation of Non-GAAP Measures (1)
Quarterly (Unaudited)
(dollars in thousands, except per share amounts; taxable equivalent)	1Q18			4Q17			3Q17			2Q17			1Q17

Book value per common share reconciliation
Book value per common share (GAAP)	$	16.58		$	16.45		$	16.48		$	16.23		$	15.96
Effect of goodwill and other intangibles	(2.43		)	(2.45		)	(2.47		)	(2.29		)	(2.30		)
Tangible book value per common share	$	14.15		$	14.00		$	14.01		$	13.94		$	13.66

Average tangible equity reconciliation
Average equity (GAAP)	$	642,787		$	645,409		$	638,620		$	627,294		$	617,009
Effect of average goodwill and other intangibles	(95,167		)	(95,845		)	(88,618		)	(89,141		)	(89,406		)
Average tangible equity	$	547,620		$	549,564		$	550,002		$	538,153		$	527,603

(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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