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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, April 26, 2018 (GLOBE NEWSWIRE) -- 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.

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

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