Attached files
| file | filename |
|---|---|
| 8-K - 8-K - STATE BANK FINANCIAL CORP | a8kcoverpage033114.htm |
| EX-99.2 - EX-99.2 - STATE BANK FINANCIAL CORP | a1q14earningsslidesfinal.htm |
Media Contact: David Rubinger 404.502.1240 / david.rubinger@statebt.com
Investor Relations Contact: Jeremy Lucas 404.239.8626 / jeremy.lucas@statebt.com
State Bank Financial Corporation Reports First Quarter Financial Results
▪ | First quarter 2014 net income of $4.3 million, or $.13 per diluted share |
▪ | Net organic loan growth of $43 million |
▪ | Year-over-year and linked-quarter growth in payroll fee income |
▪ | Announced transaction with Atlanta Bancorporation subsequent to quarter-end |
ATLANTA, GA, April 30, 2014 - State Bank Financial Corporation (NASDAQ: STBZ) today announced unaudited financial results for the quarter ended March 31, 2014. Net income for the first quarter of 2014 was $4.3 million, compared to a net loss of $1.2 million for the first quarter of 2013 and net income of $9.4 million for the fourth quarter of 2013. Fully diluted earnings per share were $.13 in the first quarter of 2014 compared to a loss per share of $.04 in the first quarter of 2013 and fully diluted earnings per share of $.28 in the fourth quarter of 2013.
Joe Evans, Chairman and CEO, commented, "The first quarter of 2014 provided a solid start to the year for our company. I am very pleased with the positive trends in our traditional banking operations: our payroll business posted a record quarter, we experienced solid growth in organic loans and noninterest-bearing deposits, our credit metrics remained exceptional and our expense levels reflected the benefit of the efficiency actions undertaken over the past year. As expected, the FDIC receivable and related amortization expense on the covered loan portfolio both declined in the quarter, and we feel very well prepared for the expiration of our largest commercial loss share agreements later this year."
Operating Highlights
Net interest income was $42.4 million in the first quarter of 2014, down from $64.4 million in the fourth quarter of 2013 but up from $35.5 million in the first quarter of 2013. Accretion income on covered loans was $26.5 million in the first quarter of 2014, down from $48.1 million in the fourth quarter of 2013 due to smaller gains on covered loan pools closing out in the first quarter of 2014 compared to the fourth quarter of 2013. Interest income on noncovered loans for the first quarter of 2014 was $15.3 million, down from $15.9 million in the prior quarter, but up from $14.4 million in the first quarter of 2013. The yield on noncovered loans decreased slightly versus the prior quarter, down four basis points to 5.49% in the first quarter of 2014. The higher yield in the previous quarter was elevated, in part, by the acceleration of fee income recognition resulting from the high level of payoffs we experienced in the fourth quarter of 2013. Interest expense of $1.9 million in the first quarter of 2014 was down slightly versus the prior quarter and the prior year. Cost of funds for the first quarter of 2014 of 37 basis points was unchanged from the prior quarter and down one basis point from the first quarter of 2013.
1
The noncovered loan portfolio continues to perform well, as recoveries were greater than charge-offs in the first quarter of 2014. We recorded no provision for loan losses on noncovered loans for the second straight quarter. The provision on covered loans, net of the FDIC benefit, was $590 thousand in the first quarter of 2014 principally related to one of the pools that closed in the quarter.
Noninterest income excluding amortization of the FDIC receivable for loss share agreements, which we refer to as the indemnification asset, was $3.1 million for the first quarter of 2014, down from $4.0 million in the fourth quarter of 2013. Higher linked-quarter payroll fee income of $74 thousand partially offset a $146 thousand decrease in service charge income, which declined due to lower consumer NSF fees. Noninterest income was also impacted by ineffectiveness in the hedges on underlying fixed-rate loans, which contributed to a $526 thousand linked-quarter decline. Total noninterest income for the first quarter of 2014, which includes amortization of the indemnification asset, was negative $12.2 million compared to negative $27.4 million in the fourth quarter of 2013 and negative $12.7 million in the first quarter of 2013.
Amortization of the indemnification asset negatively impacted noninterest income by $15.3 million in the first quarter of 2014 compared to $31.4 million in the fourth quarter of 2013 and $16.8 million in the first quarter of 2013. As of March 31, 2014, we are currently projecting $29 million of scheduled amortization of the indemnification asset with an estimated weighted average life of four quarters, versus $156 million of scheduled loan accretion income with an estimated weighted average life of ten quarters. Although the estimated weighted average life of the scheduled amortization and remaining accretable discount increased slightly this quarter, the effect of this lengthening is not significant, since we are dealing with much lower overall amounts compared to previous quarters. This lengthening of the weighted average life of both accretion and amortization is expected as the larger, shorter-term non-single family tranches of loss share expire and the related assets are resolved.
Total noninterest expense for the first quarter of 2014 was $23.1 million, up $365 thousand from the fourth quarter of 2013 but down $3.6 million from the first quarter of 2013. Salary and benefit costs increased to $15.1 million for the first quarter of 2014 from $14.5 million in the prior quarter driven primarily by higher seasonal tax and benefit costs, including higher FICA taxes. Approximately $200 thousand of the $577 thousand linked-quarter increase in salaries and benefits was due to one-time severance costs related to headcount reductions in the special assets division. Loan collection and OREO costs decreased $109 thousand linked-quarter to $624 thousand in the first quarter of 2014.
Financial Condition
Total assets at March 31, 2014 were $2.62 billion, up from $2.60 billion at December 31, 2013 but down from $2.64 billion at March 31, 2013. Loans not covered by loss share agreements with the FDIC increased to $1.17 billion at March 31, 2014, a net increase of $43.4 million from the fourth quarter of 2013. Noncovered loans comprise 82.6% of total gross loans at March 31, 2014. Total net loans were $1.38 billion at March 31, 2014, up $30.2 million from the fourth quarter of 2013 but down $27.3 million from the first quarter of 2013 as covered loans continue to be resolved.
Total deposits at March 31, 2014 were $2.14 billion, up from $2.13 billion at the end of the fourth quarter of 2013 but down from $2.15 billion at the end of the first quarter of 2013. Noninterest-bearing deposits increased $3.3 million from the fourth quarter of 2013 and $61.7 million from the first quarter of 2013. Period-end noninterest-bearing deposits represented 22.0% of total deposits as of March 31, 2014. Average noninterest-bearing deposits increased $10.3 million from the fourth quarter of 2013 and $57.2 million from the first quarter of 2013.
2
Tangible book value per share was $13.36 at the end of the first quarter of 2014. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 16.67% and a Tier I risk-based capital ratio of 27.20%.
Recent Transaction
On April 28, 2014, State Bank Financial Corporation announced the signing of a definitive agreement with Atlanta Bancorporation, Inc. and its wholly-owned subsidiary, Bank of Atlanta. Upon closing of the transaction, Atlanta Bancorporation will merge into State Bank Financial, immediately followed by the merger of Bank of Atlanta into State Bank and Trust Company, a wholly-owned subsidiary of State Bank Financial. Bank of Atlanta is headquartered in midtown Atlanta and operates one additional banking office in Duluth, Georgia. At March 31, 2014, Bank of Atlanta had approximately $198 million of total assets, $123 million of loans and $161 million of deposits. State Bank Financial has agreed to pay approximately $25 million in cash for all outstanding shares of Atlanta Bancorporation. The agreement has been unanimously approved by the Boards of Directors of both companies and is expected to close no later than the fourth quarter of 2014. Completion of the transaction is subject to certain closing conditions, including customary regulatory approvals and the approval by Atlanta Bancorporation shareholders.
Detailed Results
Supplemental tables displaying financial results for the first quarter of 2014 and the previous four quarters are included with this press release.
Conference Call
State Bank Chief Executive Officer Joe Evans, Chief Financial Officer Tom Callicutt and Executive Risk Officer Kim Childers will discuss financial and business results for the quarter on a conference call today at 10:00 a.m. EDT. The dial in number is 1.800.918.9476. Please dial in 10 minutes prior to the start of the call to register. You will be asked to provide your name and affiliation/company to join the call. A replay of the conference call will be available shortly after the call's completion in the Investors section on the company's website at www.statebt.com. A slide presentation for today's call is also available in the Investors section on the company's website.
About State Bank Financial Corporation and State Bank and Trust Company
State Bank Financial Corporation (NASDAQ: STBZ) is the holding company for State Bank and Trust Company, one of Georgia's best-capitalized banks, with approximately $2.6 billion in assets as of March 31, 2014. State Bank has locations in Metro Atlanta and Middle Georgia.
To learn more about State Bank, visit www.statebt.com
3
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this news release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans, expectations and benefits of our strategic plan, including projections and expectations of future growth, the impact of the expiration of our loss share agreements, amortization of the FDIC receivable for loss share agreements and accretion on covered loans, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as a downturn in the economy, unanticipated losses related to the integration of, and accounting for, acquired assets and assumed liabilities in our FDIC-assisted transactions, access to funding sources, greater than expected noninterest expenses, volatile credit and financial markets both domestic and foreign, potential deterioration in real estate values, regulatory changes and excessive loan losses, 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. See Item 1A, Risk Factors, in our Annual Report on Form 10-K for the year ended December 31, 2013, for a description of some of the important factors that may affect actual outcomes.
4
State Bank Financial Corporation 1Q14 Financial Supplement: Table 1 Condensed Consolidated Financial Summary Results Quarterly (Unaudited) | ||||||||||||||||||||||||||||
1Q14 Change vs. | ||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | 1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
Income Statement Highlights | ||||||||||||||||||||||||||||
Total interest income on invested funds | $ | 2,493 | $ | 2,416 | $ | 2,587 | $ | 2,693 | $ | 2,502 | $ | 77 | $ | (9 | ) | |||||||||||||
Interest income on noncovered loans, including fees | 15,275 | 15,861 | 15,800 | 15,141 | 14,374 | (586 | ) | 901 | ||||||||||||||||||||
Accretion income on covered loans | 26,536 | 48,065 | 27,978 | 25,787 | 20,636 | (21,529 | ) | 5,900 | ||||||||||||||||||||
Total interest expense | 1,894 | 1,961 | 1,981 | 1,995 | 1,996 | (67 | ) | (102 | ) | |||||||||||||||||||
Net interest income | 42,410 | 64,381 | 44,384 | 41,626 | 35,516 | (21,971 | ) | 6,894 | ||||||||||||||||||||
Provision for loan losses (noncovered loans) | — | — | 905 | 665 | 350 | — | (350 | ) | ||||||||||||||||||||
Provision for loan losses (covered loans) | 590 | (98 | ) | (636 | ) | (1,288 | ) | (2,385 | ) | 688 | 2,975 | |||||||||||||||||
Amortization of FDIC receivable for loss share agreements | (15,292 | ) | (31,372 | ) | (18,971 | ) | (20,762 | ) | (16,779 | ) | 16,080 | 1,487 | ||||||||||||||||
Noninterest income | 3,103 | 3,955 | 4,471 | 4,224 | 4,121 | (852 | ) | (1,018 | ) | |||||||||||||||||||
Noninterest expense | 23,083 | 22,718 | 23,124 | 25,461 | 26,664 | 365 | (3,581 | ) | ||||||||||||||||||||
Income (loss) before income taxes | 6,548 | 14,344 | 6,491 | 250 | (1,771 | ) | (7,796 | ) | 8,319 | |||||||||||||||||||
Income tax expense (benefit) | 2,226 | 4,927 | 2,142 | 113 | (615 | ) | (2,701 | ) | 2,841 | |||||||||||||||||||
Net income (loss) | $ | 4,322 | $ | 9,417 | $ | 4,349 | $ | 137 | $ | (1,156 | ) | $ | (5,095 | ) | $ | 5,478 | ||||||||||||
Per Common Share Data | ||||||||||||||||||||||||||||
Basic net income (loss) per share | $ | .13 | $ | .29 | $ | .14 | $ | — | $ | (.04 | ) | $ | (.16 | ) | $ | .17 | ||||||||||||
Diluted net income (loss) per share | .13 | .28 | .13 | — | (.04 | ) | (.15 | ) | .17 | |||||||||||||||||||
Cash dividends declared per share | .03 | .03 | .03 | .03 | .03 | — | — | |||||||||||||||||||||
Book value per share at period end | 13.74 | 13.62 | 13.36 | 13.34 | 13.38 | .12 | .36 | |||||||||||||||||||||
Tangible book value per share at period end | 13.36 | 13.24 | 12.97 | 12.94 | 12.96 | .12 | .40 | |||||||||||||||||||||
Market price at period end | 17.69 | 18.19 | 15.87 | 15.03 | 16.37 | (.50 | ) | 1.32 | ||||||||||||||||||||
Period end shares outstanding | 32,123,645 | 32,094,145 | 32,076,645 | 31,926,331 | 31,918,665 | 29,500 | 204,980 | |||||||||||||||||||||
Weighted Average Shares Outstanding: | ||||||||||||||||||||||||||||
Basic | 32,094,473 | 32,086,781 | 31,998,901 | 31,918,677 | 31,908,776 | 7,692 | 185,697 | |||||||||||||||||||||
Diluted | 33,644,135 | 33,519,550 | 33,296,650 | 33,124,681 | 31,908,776 | 124,585 | 1,735,359 | |||||||||||||||||||||
Average Balance Sheet Highlights | ||||||||||||||||||||||||||||
Noncovered loans, net of unearned income | $ | 1,133,802 | $ | 1,144,116 | $ | 1,140,052 | $ | 1,083,549 | $ | 1,007,094 | $ | (10,314 | ) | $ | 126,708 | |||||||||||||
Covered loans | 250,824 | 258,600 | 305,487 | 351,955 | 419,204 | (7,776 | ) | (168,380 | ) | |||||||||||||||||||
Loans, net of unearned income | 1,384,626 | 1,402,716 | 1,445,539 | 1,435,504 | 1,426,298 | (18,090 | ) | (41,672 | ) | |||||||||||||||||||
Assets | 2,575,216 | 2,559,725 | 2,561,802 | 2,644,241 | 2,627,041 | 15,491 | (51,825 | ) | ||||||||||||||||||||
Deposits | 2,088,787 | 2,089,202 | 2,077,170 | 2,147,653 | 2,115,382 | (415 | ) | (26,595 | ) | |||||||||||||||||||
Liabilities | 2,136,111 | 2,130,231 | 2,134,590 | 2,217,002 | 2,197,455 | 5,880 | (61,344 | ) | ||||||||||||||||||||
Equity | 439,105 | 429,494 | 427,212 | 427,239 | 429,586 | 9,611 | 9,519 | |||||||||||||||||||||
Tangible common equity | 426,828 | 417,030 | 414,516 | 414,181 | 416,155 | 9,798 | 10,673 | |||||||||||||||||||||
Key Metrics (1) | ||||||||||||||||||||||||||||
Return on average assets | .68 | % | 1.46 | % | .67 | % | .02 | % | (.18 | )% | (.78 | )% | .86 | % | ||||||||||||||
Return on average equity | 3.99 | 8.70 | 4.04 | .13 | (1.09 | ) | (4.71 | ) | 5.08 | |||||||||||||||||||
Yield on earning assets | 7.71 | 11.60 | 8.30 | 7.75 | 6.94 | (3.89 | ) | .77 | ||||||||||||||||||||
Cost of funds | .37 | .37 | .38 | .37 | .38 | — | (.01 | ) | ||||||||||||||||||||
Rate on interest-bearing liabilities | .46 | .47 | .47 | .46 | .47 | (.01 | ) | (.01 | ) | |||||||||||||||||||
Net interest margin | 7.38 | 11.26 | 7.95 | 7.40 | 6.58 | (3.88 | ) | .80 | ||||||||||||||||||||
Average equity to average assets | 17.05 | 16.78 | 16.68 | 16.16 | 16.35 | .27 | .70 | |||||||||||||||||||||
Leverage ratio | 16.67 | 16.55 | 16.20 | 15.57 | 15.51 | .12 | 1.16 | |||||||||||||||||||||
Tier I risk-based capital ratio | 27.20 | 27.85 | 26.18 | 25.88 | 28.17 | (.65 | ) | (.97 | ) | |||||||||||||||||||
Total risk-based capital ratio | 28.47 | 29.11 | 27.44 | 27.14 | 29.45 | (.64 | ) | (.98 | ) | |||||||||||||||||||
Efficiency ratio | 76.19 | 61.28 | 77.16 | 101.14 | 116.21 | 14.91 | (40.02 | ) | ||||||||||||||||||||
Average loans to average deposits | 66.29 | 67.14 | 69.59 | 66.84 | 67.43 | (.85 | ) | (1.14 | ) | |||||||||||||||||||
Noninterest-bearing deposits to total deposits | 22.02 | 22.00 | 20.50 | 20.22 | 19.07 | .02 | 2.95 | |||||||||||||||||||||
Nonperforming loans to total noncovered loans (2) | .18 | .20 | .25 | .32 | .41 | (.02 | ) | (.23 | ) | |||||||||||||||||||
Nonperforming assets to loans + ORE: | ||||||||||||||||||||||||||||
Noncovered | .26 | .29 | .33 | .42 | .44 | (.03 | ) | (.18 | ) | |||||||||||||||||||
Covered | 13.23 | 15.22 | 15.11 | 13.56 | 10.67 | (1.99 | ) | 2.56 | ||||||||||||||||||||
(1) Income calculated on a fully tax-equivalent basis.
(2) The ratio of nonperforming covered loans to total covered loans is not presented, as there are no covered loans designated as nonperforming.
5
State Bank Financial Corporation 1Q14 Financial Supplement: Table 2 Condensed Consolidated Balance Sheets Quarterly (Unaudited) | ||||||||||||||||||||||||||||
1Q14 Change vs. | ||||||||||||||||||||||||||||
(Dollars in thousands) | 1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Cash and amounts due from depository institutions | $ | 7,314 | $ | 8,518 | $ | 7,888 | $ | 6,783 | $ | 7,680 | $ | (1,204 | ) | $ | (366 | ) | ||||||||||||
Interest-bearing deposits in other financial institutions | 549,593 | 590,231 | 399,267 | 430,937 | 459,494 | (40,638 | ) | 90,099 | ||||||||||||||||||||
Cash and cash equivalents | 556,907 | 598,749 | 407,155 | 437,720 | 467,174 | (41,842 | ) | 89,733 | ||||||||||||||||||||
Investment securities available-for-sale | 454,053 | 387,048 | 374,838 | 370,146 | 351,565 | 67,005 | 102,488 | |||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||||||||||
Noncovered under FDIC loss share agreements | 1,166,913 | 1,123,475 | 1,164,854 | 1,123,122 | 1,051,455 | 43,438 | 115,458 | |||||||||||||||||||||
Covered under FDIC loss share agreements | 246,279 | 257,494 | 290,077 | 333,683 | 396,831 | (11,215 | ) | (150,552 | ) | |||||||||||||||||||
Allowance for loan losses (noncovered loans) | (16,858 | ) | (16,656 | ) | (16,427 | ) | (15,805 | ) | (15,122 | ) | (202 | ) | (1,736 | ) | ||||||||||||||
Allowance for loan losses (covered loans) | (19,182 | ) | (17,409 | ) | (12,075 | ) | (17,630 | ) | (28,706 | ) | (1,773 | ) | 9,524 | |||||||||||||||
Net loans | 1,377,152 | 1,346,904 | 1,426,429 | 1,423,370 | 1,404,458 | 30,248 | (27,306 | ) | ||||||||||||||||||||
Mortgage loans held for sale | 1,552 | 897 | 885 | 753 | 2,386 | 655 | (834 | ) | ||||||||||||||||||||
Other real estate owned: | ||||||||||||||||||||||||||||
Noncovered under FDIC loss share agreements | 901 | 965 | 974 | 1,097 | 276 | (64 | ) | 625 | ||||||||||||||||||||
Covered under FDIC loss share agreements | 37,536 | 46,222 | 51,651 | 52,345 | 47,401 | (8,686 | ) | (9,865 | ) | |||||||||||||||||||
Premises and equipment, net | 34,592 | 33,318 | 33,988 | 34,856 | 35,379 | 1,274 | (787 | ) | ||||||||||||||||||||
Goodwill | 10,381 | 10,381 | 10,381 | 10,381 | 10,381 | — | — | |||||||||||||||||||||
Other intangibles, net | 1,824 | 1,986 | 2,150 | 2,449 | 2,819 | (162 | ) | (995 | ) | |||||||||||||||||||
FDIC receivable for loss share agreements, net | 65,248 | 103,160 | 156,549 | 210,557 | 258,848 | (37,912 | ) | (193,600 | ) | |||||||||||||||||||
Other assets | 77,232 | 71,075 | 62,101 | 64,023 | 60,619 | 6,157 | 16,613 | |||||||||||||||||||||
Total assets | $ | 2,617,378 | $ | 2,600,705 | $ | 2,527,101 | $ | 2,607,697 | $ | 2,641,306 | $ | 16,673 | $ | (23,928 | ) | |||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 471,414 | $ | 468,138 | $ | 420,269 | $ | 429,960 | $ | 409,717 | $ | 3,276 | $ | 61,697 | ||||||||||||||
Interest-bearing deposits | 1,669,647 | 1,660,187 | 1,629,642 | 1,696,124 | 1,738,473 | 9,460 | (68,826 | ) | ||||||||||||||||||||
Total deposits | 2,141,061 | 2,128,325 | 2,049,911 | 2,126,084 | 2,148,190 | 12,736 | (7,129 | ) | ||||||||||||||||||||
Securities sold under agreements to repurchase | — | 1,216 | 1,082 | 3,576 | 3,959 | (1,216 | ) | (3,959 | ) | |||||||||||||||||||
Notes payable | 4,371 | 5,682 | 5,690 | 5,698 | 3,861 | (1,311 | ) | 510 | ||||||||||||||||||||
Other liabilities | 30,507 | 28,299 | 41,825 | 46,413 | 58,360 | 2,208 | (27,853 | ) | ||||||||||||||||||||
Total liabilities | 2,175,939 | 2,163,522 | 2,098,508 | 2,181,771 | 2,214,370 | 12,417 | (38,431 | ) | ||||||||||||||||||||
Total shareholders’ equity | 441,439 | 437,183 | 428,593 | 425,926 | 426,936 | 4,256 | 14,503 | |||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,617,378 | $ | 2,600,705 | $ | 2,527,101 | $ | 2,607,697 | $ | 2,641,306 | $ | 16,673 | $ | (23,928 | ) | |||||||||||||
Capital Ratios | ||||||||||||||||||||||||||||
Average equity to average assets | 17.05 | % | 16.78 | % | 16.68 | % | 16.16 | % | 16.35 | % | .27 | % | .70 | % | ||||||||||||||
Leverage ratio | 16.67 | 16.55 | 16.20 | 15.57 | 15.51 | .12 | 1.16 | |||||||||||||||||||||
Tier I risk-based capital ratio | 27.20 | 27.85 | 26.18 | 25.88 | 28.17 | (.65 | ) | (.97 | ) | |||||||||||||||||||
Total risk-based capital ratio | 28.47 | 29.11 | 27.44 | 27.14 | 29.45 | (.64 | ) | (.98 | ) | |||||||||||||||||||
6
State Bank Financial Corporation 1Q14 Financial Supplement: Table 3 Condensed Consolidated Income Statements Quarterly (Unaudited) | ||||||||||||||||||||||||||||
1Q14 Change vs. | ||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | 1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
Total interest income on invested funds | $ | 2,493 | $ | 2,416 | $ | 2,587 | $ | 2,693 | $ | 2,502 | $ | 77 | $ | (9 | ) | |||||||||||||
Interest income on noncovered loans, including fees | 15,275 | 15,861 | 15,800 | 15,141 | 14,374 | (586 | ) | 901 | ||||||||||||||||||||
Accretion income on covered loans | 26,536 | 48,065 | 27,978 | 25,787 | 20,636 | (21,529 | ) | 5,900 | ||||||||||||||||||||
Total interest expense | 1,894 | 1,961 | 1,981 | 1,995 | 1,996 | (67 | ) | (102 | ) | |||||||||||||||||||
Net interest income | 42,410 | 64,381 | 44,384 | 41,626 | 35,516 | (21,971 | ) | 6,894 | ||||||||||||||||||||
Provision for loan losses (noncovered loans) | — | — | 905 | 665 | 350 | — | (350 | ) | ||||||||||||||||||||
Provision for loan losses (covered loans) | 590 | (98 | ) | (636 | ) | (1,288 | ) | (2,385 | ) | 688 | 2,975 | |||||||||||||||||
Net interest income after provision for loan losses | 41,820 | 64,479 | 44,115 | 42,249 | 37,551 | (22,659 | ) | 4,269 | ||||||||||||||||||||
Noninterest Income: | ||||||||||||||||||||||||||||
Amortization of FDIC receivable for loss share agreements | (15,292 | ) | (31,372 | ) | (18,971 | ) | (20,762 | ) | (16,779 | ) | 16,080 | 1,487 | ||||||||||||||||
Service charges on deposits | 1,158 | 1,304 | 1,353 | 1,284 | 1,215 | (146 | ) | (57 | ) | |||||||||||||||||||
Mortgage banking income | 159 | 153 | 260 | 289 | 306 | 6 | (147 | ) | ||||||||||||||||||||
Gain on sale of investment securities | 11 | — | 717 | — | 364 | 11 | (353 | ) | ||||||||||||||||||||
Payroll fee income | 953 | 879 | 727 | 705 | 832 | 74 | 121 | |||||||||||||||||||||
ATM income | 590 | 604 | 604 | 635 | 605 | (14 | ) | (15 | ) | |||||||||||||||||||
Bank-owned life insurance income | 329 | 333 | 342 | 335 | 344 | (4 | ) | (15 | ) | |||||||||||||||||||
Other | (97 | ) | 682 | 468 | 976 | 455 | (779 | ) | (552 | ) | ||||||||||||||||||
Total noninterest income | (12,189 | ) | (27,417 | ) | (14,500 | ) | (16,538 | ) | (12,658 | ) | 15,228 | 469 | ||||||||||||||||
Noninterest Expense: | ||||||||||||||||||||||||||||
Salaries and employee benefits | 15,077 | 14,500 | 14,794 | 15,547 | 17,395 | 577 | (2,318 | ) | ||||||||||||||||||||
Occupancy and equipment | 2,529 | 2,330 | 2,431 | 2,550 | 2,456 | 199 | 73 | |||||||||||||||||||||
Legal and professional fees | 1,014 | 1,154 | 954 | 1,280 | 1,601 | (140 | ) | (587 | ) | |||||||||||||||||||
Marketing | 332 | 369 | 457 | 350 | 328 | (37 | ) | 4 | ||||||||||||||||||||
Federal deposit insurance premiums and other regulatory fees | 334 | 303 | 939 | 604 | 469 | 31 | (135 | ) | ||||||||||||||||||||
Loan collection and OREO costs | 624 | 733 | 374 | 1,944 | 1,288 | (109 | ) | (664 | ) | |||||||||||||||||||
Data processing | 1,672 | 1,595 | 1,551 | 1,504 | 1,437 | 77 | 235 | |||||||||||||||||||||
Amortization of intangibles | 162 | 164 | 299 | 369 | 370 | (2 | ) | (208 | ) | |||||||||||||||||||
Other | 1,339 | 1,570 | 1,325 | 1,313 | 1,320 | (231 | ) | 19 | ||||||||||||||||||||
Total noninterest expense | 23,083 | 22,718 | 23,124 | 25,461 | 26,664 | 365 | (3,581 | ) | ||||||||||||||||||||
Income (Loss) Before Income Taxes | 6,548 | 14,344 | 6,491 | 250 | (1,771 | ) | (7,796 | ) | 8,319 | |||||||||||||||||||
Income tax expense (benefit) | 2,226 | 4,927 | 2,142 | 113 | (615 | ) | (2,701 | ) | 2,841 | |||||||||||||||||||
Net Income (Loss) | $ | 4,322 | $ | 9,417 | $ | 4,349 | $ | 137 | $ | (1,156 | ) | $ | (5,095 | ) | $ | 5,478 | ||||||||||||
Basic Net Income (Loss) Per Share | $ | .13 | $ | .29 | $ | .14 | $ | — | $ | (.04 | ) | $ | (.16 | ) | $ | .17 | ||||||||||||
Diluted Net Income (Loss) Per Share | .13 | .28 | .13 | — | (.04 | ) | (.15 | ) | .17 | |||||||||||||||||||
Weighted Average Shares Outstanding: | ||||||||||||||||||||||||||||
Basic | 32,094,473 | 32,086,781 | 31,998,901 | 31,918,677 | 31,908,776 | 7,692 | 185,697 | |||||||||||||||||||||
Diluted | 33,644,135 | 33,519,550 | 33,296,650 | 33,124,681 | 31,908,776 | 124,585 | 1,735,359 | |||||||||||||||||||||
7
State Bank Financial Corporation 1Q14 Financial Supplement: Table 4 Condensed Consolidated Composition of Loans and Deposits at Period Ends Quarterly (Unaudited) | ||||||||||||||||||||||||||||
1Q14 Change vs. | ||||||||||||||||||||||||||||
(Dollars in thousands) | 1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
Composition of Loans | ||||||||||||||||||||||||||||
Noncovered loans: | ||||||||||||||||||||||||||||
Construction, land & land development | $ | 259,488 | $ | 251,043 | $ | 285,855 | $ | 295,756 | $ | 265,055 | $ | 8,445 | $ | (5,567 | ) | |||||||||||||
Other commercial real estate | 593,260 | 550,474 | 552,579 | 508,620 | 486,287 | 42,786 | 106,973 | |||||||||||||||||||||
Total commercial real estate | 852,748 | 801,517 | 838,434 | 804,376 | 751,342 | 51,231 | 101,406 | |||||||||||||||||||||
Commercial & industrial | 28,140 | 30,145 | 27,573 | 33,908 | 35,944 | (2,005 | ) | (7,804 | ) | |||||||||||||||||||
Owner-occupied real estate | 171,221 | 174,858 | 181,882 | 186,652 | 176,426 | (3,637 | ) | (5,205 | ) | |||||||||||||||||||
Total commercial & industrial | 199,361 | 205,003 | 209,455 | 220,560 | 212,370 | (5,642 | ) | (13,009 | ) | |||||||||||||||||||
Residential real estate | 67,896 | 66,835 | 63,386 | 53,962 | 45,433 | 1,061 | 22,463 | |||||||||||||||||||||
Consumer & other | 46,908 | 50,120 | 53,579 | 44,224 | 42,310 | (3,212 | ) | 4,598 | ||||||||||||||||||||
Total noncovered loans | 1,166,913 | 1,123,475 | 1,164,854 | 1,123,122 | 1,051,455 | 43,438 | 115,458 | |||||||||||||||||||||
Covered loans: | ||||||||||||||||||||||||||||
Construction, land & land development | 30,770 | 35,383 | 40,268 | 51,660 | 58,802 | (4,613 | ) | (28,032 | ) | |||||||||||||||||||
Other commercial real estate | 65,599 | 67,573 | 77,040 | 91,246 | 115,194 | (1,974 | ) | (49,595 | ) | |||||||||||||||||||
Total commercial real estate | 96,369 | 102,956 | 117,308 | 142,906 | 173,996 | (6,587 | ) | (77,627 | ) | |||||||||||||||||||
Commercial & industrial | 4,216 | 4,271 | 6,378 | 8,059 | 10,811 | (55 | ) | (6,595 | ) | |||||||||||||||||||
Owner-occupied real estate | 52,791 | 54,436 | 55,723 | 67,568 | 80,239 | (1,645 | ) | (27,448 | ) | |||||||||||||||||||
Total commercial & industrial | 57,007 | 58,707 | 62,101 | 75,627 | 91,050 | (1,700 | ) | (34,043 | ) | |||||||||||||||||||
Residential real estate | 92,509 | 95,240 | 109,806 | 114,036 | 131,254 | (2,731 | ) | (38,745 | ) | |||||||||||||||||||
Consumer & other | 394 | 591 | 862 | 1,114 | 531 | (197 | ) | (137 | ) | |||||||||||||||||||
Total covered loans | 246,279 | 257,494 | 290,077 | 333,683 | 396,831 | (11,215 | ) | (150,552 | ) | |||||||||||||||||||
Total loans | $ | 1,413,192 | $ | 1,380,969 | $ | 1,454,931 | $ | 1,456,805 | $ | 1,448,286 | $ | 32,223 | $ | (35,094 | ) | |||||||||||||
Composition of Deposits | ||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 471,414 | $ | 468,138 | $ | 420,269 | $ | 429,960 | $ | 409,717 | $ | 3,276 | $ | 61,697 | ||||||||||||||
Interest-bearing transaction accounts | 382,697 | 367,983 | 304,085 | 351,289 | 333,336 | 14,714 | 49,361 | |||||||||||||||||||||
Savings and money market deposits | 903,198 | 892,136 | 908,410 | 911,415 | 959,912 | 11,062 | (56,714 | ) | ||||||||||||||||||||
Time deposits less than $100,000 | 162,002 | 168,611 | 177,634 | 186,874 | 194,098 | (6,609 | ) | (32,096 | ) | |||||||||||||||||||
Time deposits $100,000 or greater | 116,858 | 124,827 | 132,538 | 139,671 | 144,501 | (7,969 | ) | (27,643 | ) | |||||||||||||||||||
Brokered and wholesale time deposits | 104,892 | 106,630 | 106,975 | 106,875 | 106,626 | (1,738 | ) | (1,734 | ) | |||||||||||||||||||
Total deposits | $ | 2,141,061 | $ | 2,128,325 | $ | 2,049,911 | $ | 2,126,084 | $ | 2,148,190 | $ | 12,736 | $ | (7,129 | ) | |||||||||||||
8
State Bank Financial Corporation 1Q14 Financial Supplement: Table 5 Condensed Consolidated Asset Quality Data Quarterly (Unaudited) | ||||||||||||||||||||||||||||
1Q14 Change vs. | ||||||||||||||||||||||||||||
(Dollars in thousands) | 1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
Nonperforming noncovered assets: | ||||||||||||||||||||||||||||
Nonaccrual loans | $ | 1,265 | $ | 1,396 | $ | 1,978 | $ | 2,704 | $ | 3,424 | $ | (131 | ) | $ | (2,159 | ) | ||||||||||||
Troubled debt restructurings | 866 | 869 | 876 | 890 | 884 | (3 | ) | (18 | ) | |||||||||||||||||||
Total nonperforming noncovered loans | 2,131 | 2,265 | 2,854 | 3,594 | 4,308 | (134 | ) | (2,177 | ) | |||||||||||||||||||
Other real estate owned | 901 | 965 | 974 | 1,097 | 276 | (64 | ) | 625 | ||||||||||||||||||||
Total nonperforming noncovered assets | 3,032 | 3,230 | 3,828 | 4,691 | 4,584 | (198 | ) | (1,552 | ) | |||||||||||||||||||
Nonperforming covered assets: | ||||||||||||||||||||||||||||
Other real estate owned (1) | $ | 37,536 | $ | 46,222 | $ | 51,651 | $ | 52,345 | $ | 47,401 | $ | (8,686 | ) | $ | (9,865 | ) | ||||||||||||
Noncovered assets: | ||||||||||||||||||||||||||||
Charge-offs | $ | 136 | $ | 67 | $ | 330 | $ | 8 | $ | 12 | $ | 69 | $ | 124 | ||||||||||||||
Recoveries | 338 | 296 | 47 | 26 | 124 | 42 | 214 | |||||||||||||||||||||
Net (recoveries) charge-offs | $ | (202 | ) | $ | (229 | ) | $ | 283 | $ | (18 | ) | $ | (112 | ) | $ | 27 | $ | (90 | ) | |||||||||
Ratios: | ||||||||||||||||||||||||||||
Annualized QTD net (recoveries) charge-offs to total average noncovered loans | (.07 | )% | (.08 | )% | .10 | % | (.01 | )% | (.05 | )% | .01 | % | (.02 | )% | ||||||||||||||
Nonperforming loans to total noncovered loans (2) | .18 | .20 | .25 | .32 | .41 | (.02 | ) | (.23 | ) | |||||||||||||||||||
Nonperforming assets to loans + ORE: | ||||||||||||||||||||||||||||
Noncovered | .26 | .29 | .33 | .42 | .44 | (.03 | ) | (.18 | ) | |||||||||||||||||||
Covered | 13.23 | 15.22 | 15.11 | 13.56 | 10.67 | (1.99 | ) | 2.56 | ||||||||||||||||||||
Allowance for loan losses to loans: | ||||||||||||||||||||||||||||
Noncovered | 1.44 | 1.48 | 1.41 | 1.41 | 1.44 | (.04 | ) | — | ||||||||||||||||||||
Covered | 7.79 | 6.76 | 4.16 | 5.28 | 7.23 | 1.03 | .56 | |||||||||||||||||||||
(1) Total nonperforming assets for covered assets consist of other real estate only. There are no covered loans designated as nonperforming.
(2) The ratio of nonperforming covered loans to total covered loans is not presented, as there are no covered loans designated as nonperforming.
9
State Bank Financial Corporation 1Q14 Financial Supplement: Table 6 Condensed Consolidated Average Balances and Yield Analysis Quarterly (Unaudited) | ||||||||||||||||||||||||||||
1Q14 Change vs. | ||||||||||||||||||||||||||||
(Dollars in thousands) | 1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
Selected Average Balances | ||||||||||||||||||||||||||||
Interest-bearing deposits in other financial institutions | $ | 518,362 | $ | 489,046 | $ | 398,391 | $ | 465,823 | $ | 447,929 | $ | 29,316 | $ | 70,433 | ||||||||||||||
Taxable investment securities | 425,158 | 374,416 | 369,485 | 352,955 | 314,510 | 50,742 | 110,648 | |||||||||||||||||||||
Nontaxable investment securities | 5,538 | 5,559 | 5,836 | 6,436 | 7,089 | (21 | ) | (1,551 | ) | |||||||||||||||||||
Noncovered loans receivable (1) | 1,133,802 | 1,144,116 | 1,140,052 | 1,083,549 | 1,007,094 | (10,314 | ) | 126,708 | ||||||||||||||||||||
Covered loans receivable | 250,824 | 258,600 | 305,487 | 351,955 | 419,204 | (7,776 | ) | (168,380 | ) | |||||||||||||||||||
Total earning assets | 2,333,684 | 2,271,737 | 2,219,251 | 2,260,718 | 2,195,826 | 61,947 | 137,858 | |||||||||||||||||||||
Total nonearning assets | 241,532 | 287,988 | 342,551 | 383,523 | 431,215 | (46,456 | ) | (189,683 | ) | |||||||||||||||||||
Total assets | 2,575,216 | 2,559,725 | 2,561,802 | 2,644,241 | 2,627,041 | 15,491 | (51,825 | ) | ||||||||||||||||||||
Interest-bearing transaction accounts | 357,988 | 338,502 | 320,168 | 360,221 | 324,342 | 19,486 | 33,646 | |||||||||||||||||||||
Savings & money market deposits | 894,994 | 909,999 | 908,275 | 936,819 | 956,517 | (15,005 | ) | (61,523 | ) | |||||||||||||||||||
Time deposits less than $100,000 | 165,158 | 173,061 | 181,865 | 190,795 | 197,893 | (7,903 | ) | (32,735 | ) | |||||||||||||||||||
Time deposits $100,000 or greater | 122,217 | 129,384 | 137,147 | 142,364 | 145,329 | (7,167 | ) | (23,112 | ) | |||||||||||||||||||
Brokered and wholesale time deposits | 106,555 | 106,676 | 106,918 | 106,818 | 106,641 | (121 | ) | (86 | ) | |||||||||||||||||||
Notes payable | 5,212 | 5,686 | 5,695 | 5,026 | 2,536 | (474 | ) | 2,676 | ||||||||||||||||||||
Securities sold under agreements to repurchase | 727 | 675 | 2,438 | 5,083 | 3,388 | 52 | (2,661 | ) | ||||||||||||||||||||
Total interest-bearing liabilities | 1,652,851 | 1,663,983 | 1,662,506 | 1,747,126 | 1,736,646 | (11,132 | ) | (83,795 | ) | |||||||||||||||||||
Noninterest-bearing deposits | 441,875 | 431,580 | 422,797 | 410,636 | 384,660 | 10,295 | 57,215 | |||||||||||||||||||||
Other liabilities | 41,385 | 34,668 | 49,287 | 59,240 | 76,149 | 6,717 | (34,764 | ) | ||||||||||||||||||||
Shareholders’ equity | 439,105 | 429,494 | 427,212 | 427,239 | 429,586 | 9,611 | 9,519 | |||||||||||||||||||||
Total liabilities and shareholders' equity | 2,575,216 | 2,559,725 | 2,561,802 | 2,644,241 | 2,627,041 | 15,491 | (51,825 | ) | ||||||||||||||||||||
Interest Margins (2) | ||||||||||||||||||||||||||||
Interest-bearing deposits in other financial institutions | .27 | % | .27 | % | .31 | % | .27 | % | .23 | % | — | % | .04 | % | ||||||||||||||
Taxable investment securities | 2.03 | 2.19 | 2.42 | 2.68 | 2.86 | (.16 | ) | (.83 | ) | |||||||||||||||||||
Nontaxable investment securities, tax-equivalent basis (3) | 2.34 | 2.28 | 2.31 | 2.31 | 2.75 | .06 | (.41 | ) | ||||||||||||||||||||
Noncovered loans receivable, tax-equivalent basis (4) | 5.49 | 5.53 | 5.52 | 5.63 | 5.82 | (.04 | ) | (.33 | ) | |||||||||||||||||||
Covered loans receivable | 42.91 | 73.74 | 36.34 | 29.39 | 19.96 | (30.83 | ) | 22.95 | ||||||||||||||||||||
Total earning assets | 7.71 | % | 11.60 | % | 8.30 | % | 7.75 | % | 6.94 | % | (3.89 | )% | .77 | % | ||||||||||||||
Interest-bearing transaction accounts | .12 | .11 | .11 | .10 | .12 | .01 | — | |||||||||||||||||||||
Savings & money market deposits | .44 | .43 | .42 | .42 | .43 | .01 | .01 | |||||||||||||||||||||
Time deposits less than $100,000 | .54 | .55 | .57 | .59 | .59 | (.01 | ) | (.05 | ) | |||||||||||||||||||
Time deposits $100,000 or greater | .69 | .67 | .71 | .72 | .74 | .02 | (.05 | ) | ||||||||||||||||||||
Brokered and wholesale time deposits | .93 | .93 | .93 | .93 | .93 | — | — | |||||||||||||||||||||
Notes payable | 11.52 | 11.44 | 11.49 | 10.77 | 12.79 | .08 | (1.27 | ) | ||||||||||||||||||||
Securities sold under agreements to repurchase | — | — | .16 | .08 | .12 | — | (.12 | ) | ||||||||||||||||||||
Total interest-bearing liabilities | .46 | .47 | .47 | .46 | .47 | (.01 | ) | (.01 | ) | |||||||||||||||||||
Net interest spread | 7.25 | 11.13 | 7.83 | 7.29 | 6.47 | (3.88 | ) | .78 | ||||||||||||||||||||
Net interest margin | 7.38 | % | 11.26 | % | 7.95 | % | 7.40 | % | 6.58 | % | (3.88 | )% | .80 | % | ||||||||||||||
(1) The above amount includes average nonaccrual loans of $2,098 for 1Q14, $2,642 for 4Q13, $2,371 for 3Q13, $4,136 for 2Q13, and $3,980 for 1Q13.
(2) Annualized for the applicable period.
(3) Reflects taxable equivalent adjustments using the statutory tax rate of 35% in adjusting interest on tax-exempt securities to a fully taxable basis. The taxable equivalent adjustments included above amount to $11 for 1Q14, $11 for 4Q13, $12 for 3Q13, $13 for 2Q13, and $17 for 1Q13.
(4) Reflects taxable equivalent adjustments using the 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 $65 for 1Q14, $97 for 4Q13, $72 for 3Q13, $73 for 2Q13, and $69 for 1Q13.
10