Form 8-K STATE BANK FINANCIAL For: Jan 29

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 8/15/2026

1. AMAT
2. GLOB
3. SPY
4. RDDT
5. HTFL
6. SNDK
7. WDAY
8. ADYEN:NA
9. DVLT
10. ADYYF

January 29, 2015 7:29 AM EST


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
�
FORM�8-K
�
CURRENT REPORT
Pursuant to Section�13 or 15(d)�of The Securities Exchange Act of 1934
�
Date of Report (Date of earliest event reported):�January�29, 2015
�
State Bank Financial Corporation
(Exact name of registrant as specified in its charter)
�
Georgia
(State or other jurisdiction of incorporation)
�
001-35139
�
27-1744232
(Commission File Number)
�
(IRS Employer Identification No.)
�
3399 Peachtree Road, NE, Suite�1900
�
�
Atlanta, Georgia
�
30326
(Address of principal executive offices)
�
(Zip Code)
�
(404) 475-6599
(Registrants telephone number, including area code)
�

(Former name or former address, if changed since last report)
�
Check the appropriate box below if the Form�8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
�
x���������� Written communications pursuant to Rule�425 under the Securities Act (17 CFR 230.425)
�
o����������� Soliciting material pursuant to Rule�14a-12 under the Exchange Act (17 CFR 240.14a-12)
�
o����������� Pre-commencement communications pursuant to Rule�14d-2(b)�under the Exchange Act (17 CFR 240.14d-2(b))
�
o����������� Pre-commencement communications pursuant to Rule�13e-4(c)�under the Exchange Act (17 CFR 240.13e-4(c))




INFORMATION TO BE INCLUDED IN THE REPORT
�
Item 2.02.� Results of Operations and Financial Condition
�
On January�29, 2015, State Bank Financial Corporation, the holding company for State Bank and Trust Company, issued a press release announcing its unaudited financial results for the quarter and year ended December�31, 2014. A copy of the press release is attached hereto to this Current Report on Form 8-K as Exhibit�99.1.

Item 7.01. Regulation FD Disclosure

A copy of the slide presentation that State Bank Financial Corporation will present during the earnings conference call starting at 10:00 AM EST on January�29, 2015 is attached hereto to this Current Report on Form 8-K as Exhibit 99.2. The slide presentation is also available on the companys website, www.statebt.com, under the Investors section.

The information furnished pursuant to Items 2.02 and 7.01, including Exhibits 99.1 and 99.2, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 (Exchange Act) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the company under the Securities Act of 1933, as amended (the Securities Act) or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01.� Financial Statements and Exhibits
�
(d)���������� Exhibits

Exhibit�No.
�
Exhibit
99.1
�
Press Release dated January 29, 2015
99.2
�
Slide Presentation dated January 29, 2015




SIGNATURES
�
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
�
�
STATE BANK FINANCIAL CORPORATION
�
�
�
�
�
�
Dated: January 29, 2015
By:
/s/ Sheila E. Ray
�
�
Sheila E. Ray
�
�
Chief Financial Officer
�
�
�




���������
����

Media Contact: David Rubinger 404.502.1240 / [email protected]
Investor Relations Contact: Jeremy Lucas 404.239.8626 / [email protected]


State Bank Financial Corporation Reports
Full Year and Fourth Quarter 2014 Financial Results
�
�
Full year 2014 net income of $30.9 million, or $.92 per diluted share
�
Organic loan growth of $197 million, or 17.5%, for full year 2014
�
Continued growth in transaction account balances and treasury services
�
Merger, conversion and integration of Bank of Atlanta successfully completed

ATLANTA, GA, January�29, 2015 - State Bank Financial Corporation (NASDAQ: STBZ) today announced unaudited financial results for the full year and fourth quarter ended December�31, 2014. Full year net income for 2014 was $30.9 million, compared to $12.7 million for full year 2013. Net income for the fourth quarter of 2014 was $7.6 million, compared to $9.4 million for the fourth quarter of 2013 and $11.5 million for the third quarter of 2014. Fully diluted earnings per share were $.92 for full year 2014 compared to $.38 for full year 2013. Fully diluted earnings per share were $.22 in the fourth quarter of 2014 compared to $.28 in the fourth quarter of 2013 and $.34 in the third quarter of 2014.

Joe Evans, Chairman and CEO, commented, "The fourth quarter of 2014 was a solid finish to a very successful year marked by strong growth in loans and transaction deposits, excellent credit metrics and the acquisition of two healthy banks. We were also pleased to see the fifth anniversaries of our largest loss share acquisitions pass uneventfully. The momentum and pipelines we have going into 2015 cause me to be very optimistic about what lies ahead."

Operating Highlights

Net interest income was $32.5 million in the fourth quarter of 2014, down from $38.0 million in the third quarter of 2014. A $7.0 million decline in accretion income offset $1.3 million in growth in interest income, resulting in the decline in net interest income. Accretion income on loans was $14.1 million in the fourth quarter of 2014, down from $21.1 million in the third quarter of 2014. The higher accretion income in the previous quarter was due primarily to timing of gains from purchased loan pools closing out in the third quarter of 2014. Interest income on loans, excluding purchased credit impaired ("PCI") loans, for the fourth quarter of 2014 was $17.4 million, up from $16.2 million in the prior quarter. Interest expense of $1.9 million in the fourth quarter of 2014 was essentially flat with the prior quarter and prior year period. Cost of funds for the fourth quarter of 2014 was 33 basis points, down two basis points from the prior quarter and four basis points from the prior year period.

The organic loan portfolio continued to perform well in the fourth quarter of 2014 as past due loans represented 17 basis points of total organic loans. The provision for loan losses was $1.2 million in the fourth quarter of 2014 and was primarily attributable to organic loan growth in the quarter.



Noninterest income, excluding accretion/(amortization) of the FDIC receivable for loss share agreements (which we refer to as the indemnification asset), was $5.3 million for the fourth quarter of 2014, up from $3.6 million in the third quarter of 2014 due primarily to higher prepayment fees on loans, SBA income and payroll fee income.

Total noninterest income for the fourth quarter of 2014, which includes accretion/(amortization) of the indemnification asset, was $6.9 million, compared to $3.4 million in the third quarter of 2014. We recognized accretion of the indemnification asset of $1.7 million in the fourth quarter of 2014, as opposed to amortization of the indemnification asset in prior quarters. Upon expiration of the two commercial loss share agreements in the fourth quarter, it became apparent that our actual collections would exceed our estimated collections, thereby reducing the reserve allocated for disallowed claims resulting in the reversal to accretion from amortization of the indemnification asset.

Total noninterest expense for the fourth quarter of 2014 was $25.8 million, a $3.3 million increase from the third quarter of 2014 due primarily to higher salary and benefit costs. Approximately $1.5 million of the $3.2 million linked-quarter increase in salary and benefit cost was due to severance costs related to executive management realignment and headcount reductions. The staff reductions have been partially offset by additional personnel in mortgage, SBA and payroll growth initiatives. Additionally, $1.1 million of the quarterly increase was related to increased headcount and retention payments from the Bank of Atlanta merger. Personnel cost savings of approximately $315 thousand related to staff reductions following the conversion of Bank of Atlanta will be largely recognized in the first quarter of 2015. Additionally, merger-related expenses for the fourth quarter and full year 2014 totaled $306 thousand and $795 thousand, respectively.

Financial Condition

Total assets at December�31, 2014 were $2.88 billion, up from $2.65 billion at September�30, 2014 and $2.61 billion at December�31, 2013. Total net loans were $1.61 billion at December�31, 2014, up $128.4 million from the third quarter of 2014 primarily due to a $116.0 million increase related to our acquisition of Bank of Atlanta.

Period-end organic loans increased to $1.32 billion at December�31, 2014, a net increase of $28.5 million from the third quarter of 2014 and $196.9 million from year-end 2013. Period-end organic loans comprised 87.4% of total gross loans at December�31, 2014. Purchased non-credit impaired loans from Bank of Atlanta totaled $107.8 million at year-end 2014. Purchased credit impaired loans decreased to $206.3 million and included $8.2 million of PCI loans from our acquisition of Bank of Atlanta.

Total deposits at December�31, 2014 were $2.39 billion, up from $2.16 billion at the end of the third quarter of 2014 and $2.13 billion at the end of the fourth quarter of 2013. Period-end noninterest-bearing demand deposits and interest-bearing transaction accounts, which make up total transaction accounts, increased $171.4 million from the third quarter of 2014, inclusive of $39.4 million of transaction deposits acquired from Bank of Atlanta. Period-end noninterest-bearing demand deposits increased $52.7 million from the third quarter of 2014, inclusive of $32.2 million of noninterest-bearing deposits acquired from Bank of Atlanta. Period-end noninterest-bearing demand deposits represented 24.1% of total deposits as of December�31, 2014. Average noninterest-bearing demand deposits, which increased for the eleventh consecutive quarter, were up $33.6 million from the third quarter of 2014, excluding average noninterest-bearing deposits from Bank of Atlanta.


2


Tangible book value per share was $13.97 at the end of the fourth quarter of 2014. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 15.90% and a Tier I risk-based capital ratio of 23.12%.

Subsequent Event

On January 1, 2015, State Bank Financial Corporation completed its previously announced merger with Georgia-Carolina Bancshares, Inc., the holding company for First Bank of Georgia. At December 31, 2014, First Bank of Georgia had approximately $517 million of total assets, $334 million of loans, $417 million of deposits and seven banking offices in the Augusta, Georgia market.

Detailed Results

Supplemental tables displaying financial results for the fourth quarter of 2014, the previous four quarters and full year 2014 are included with this press release.

Conference Call

State Bank Chief Executive Officer Joe Evans, Chief Financial Officer Sheila Ray and Executive Risk Officer Kim Childers will discuss financial and business results for the quarter and the year on a conference call today at 10:00 a.m. EST. The dial in number is 1.800.684.5780. 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'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
State Bank Financial Corporation (NASDAQ: STBZ) is an Atlanta-based bank holding company for State Bank and Trust Company and First Bank of Georgia. State Bank operates 21 banking offices in Metro Atlanta and Middle Georgia. First Bank of Georgia operates seven banking offices and four mortgage origination offices in the Augusta and Savannah, Georgia MSAs.
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. Forward-looking statements can be identified by words such as: intend, plan, seek, believe, expect, strategy, future, likely, project, may, should, will and similar references to future periods. Examples of forward-looking statements include, among others, statements related to our momentum and pipeline going into 2015, our 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 and the expected personnel cost savings related to staff reductions and the conversion of Bank of Atlanta. 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 acquisitions, 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 most recently ended fiscal year, for a description of some of the important factors that may affect actual outcomes.




4


State Bank Financial Corporation
4Q14 Financial Supplement: Table 1
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
�
�
�
�
�
�
�
�
�
�
�
�
4Q14 change vs
(Dollars�in�thousands,�except�per�share� amounts)
�
4Q14
�
3Q14
�
2Q14
�
1Q14
�
4Q13
�
3Q14
�
4Q13
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Income Statement Highlights
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Interest income on invested funds
�
$
2,928

�
$
2,545

�
$
2,522

�
$
2,493

�
$
2,416

�
$
383

�
$
512

Interest income on loans
�
17,416

�
16,162

�
15,350

�
15,248

�
15,826

�
1,254

�
1,590

Accretion income on loans
�
14,124

�
21,110

�
17,087

�
26,536

�
48,065

�
(6,986
)
�
(33,941
)
Interest expense
�
1,923

�
1,857

�
1,846

�
1,894

�
1,961

�
66

�
(38
)
Net interest income
�
32,545

�
37,960

�
33,113

�
42,383

�
64,346

�
(5,415
)
�
(31,801
)
Provision for (recovery of) loan losses
�
1,189

�
416

�
701

�
590

�
(98
)
�
773

�
1,287

Accretion (amortization) of FDIC receivable for loss share agreements
�
1,652

�
(196
)
�
(1,949
)
�
(15,292
)
�
(31,372
)
�
1,848

�
33,024

Other noninterest income
�
5,285

�
3,624

�
3,348

�
3,130

�
3,990

�
1,661

�
1,295

Noninterest expense
�
25,799

�
22,510

�
22,076

�
23,083

�
22,718

�
3,289

�
3,081

Income before income taxes
�
12,494

�
18,462

�
11,735

�
6,548

�
14,344

�
(5,968
)
�
(1,850
)
Income tax expense
�
4,909

�
6,958

�
4,228

�
2,226

�
4,927

�
(2,049
)
�
(18
)
Net income
�
$
7,585

�
$
11,504

�
$
7,507

�
$
4,322

�
$
9,417

�
$
(3,919
)
�
$
(1,832
)
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Common Share Data
�
�
�
�
�
�
�
�
�
�
�


�


Basic net income per share
�
$
.24

�
$
.36

�
$
.23

�
$
.13

�
$
.29

�
$
(.12
)
�
$
(.05
)
Diluted net income per share
�
.22

�
.34

�
.22

�
.13

�
.28

�
(.12
)
�
(.06
)
Cash dividends declared per share
�
.04

�
.04

�
.04

�
.03

�
.03

�


�
.01

Book value per share
�
14.38

�
14.20

�
13.95

�
13.74

�
13.62

�
.18

�
.76

Tangible book value per share
�
13.97

�
13.83

�
13.58

�
13.36

�
13.24

�
.14

�
.73

Market price per share
�
19.98

�
16.24

�
16.91

�
17.69

�
18.19

�
3.74

�
1.79

�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Average Balance Sheet Highlights
�
�
�
�
�
�
�
�
�
�
�


�


Loans, excluding purchased credit impaired
�
$
1,430,495

�
$
1,246,008

�
$
1,192,494

�
$
1,133,802

�
$
1,144,116

�
$
184,487

�
$
286,379

Purchased credit impaired loans
�
214,518

�
215,318

�
236,178

�
250,824

�
258,600

�
(800
)
�
(44,082
)
Assets
�
2,858,209

�
2,609,776

�
2,591,025

�
2,579,904

�
2,564,205

�
248,433

�
294,004

Deposits
�
2,339,566

�
2,125,659

�
2,108,595

�
2,088,787

�
2,089,202

�
213,907

�
250,364

Equity
�
461,137

�
448,982

�
444,175

�
439,105

�
429,494

�
12,155

�
31,643

Tangible common equity
�
447,641

�
437,038

�
432,073

�
426,828

�
417,030

�
10,603

�
30,611

�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Key Metrics
�
�
�
�
�
�
�
�
�
�
�


�


Return on average assets (1)
�
1.05
%
�
1.75
%
�
1.16
%
�
.68
%
�
1.46
%
�
(.70
)%
�
(.41
)%
Return on average equity (1)
�
6.53

�
10.17

�
6.78

�
3.99

�
8.70

�
(3.64
)
�
(2.17
)
Yield on earning assets (2)
�
5.08

�
6.44

�
5.86

�
7.71

�
11.60

�
(1.36
)
�
(6.52
)
Cost of funds (2)
�
.33

�
.35

�
.35

�
.37

�
.37

�
(.02
)
�
(.04
)
Rate on interest-bearing liabilities
�
.43

�
.45

�
.45

�
.46

�
.47

�
(.45
)
�
(.47
)
Net interest margin (2)
�
4.80

�
6.14

�
5.55

�
7.38

�
11.26

�
(1.34
)
�
(6.46
)
Average equity to average assets
�
16.13

�
17.20

�
17.14

�
17.02

�
16.75

�
(1.07
)
�
(.62
)
Leverage ratio
�
15.90

�
17.16

�
16.84

�
16.67

�
16.55

�
(1.26
)
�
(.65
)
Tier I risk-based capital ratio
�
23.12

�
25.17

�
27.06

�
27.20

�
27.85

�
(2.05
)
�
(4.73
)
Efficiency ratio (2)
�
65.20

�
54.28

�
63.82

�
76.19

�
61.28

�
10.92

�
3.92

Average loans to average deposits
�
70.31

�
68.75

�
67.75

�
66.29

�
67.14

�
1.56

�
3.17

Noninterest-bearing deposits to total deposits
�
24.14

�
24.33

�
21.82

�
22.02

�
22.00

�
(.19
)
�
2.14

�
(1)� Net income annualized for the applicable period.
(2)� Interest income annualized for the applicable period and calculated on a fully tax-equivalent basis.


5


State Bank Financial Corporation
4Q14 Financial Supplement: Table 2
Condensed Consolidated Balance Sheets
Quarterly (Unaudited)
�
�
�
�
�
�
�
�
�
�
�
�
4Q14 change vs
(Dollars�in�thousands)
�
4Q14
�
3Q14
�
2Q14
�
1Q14
�
4Q13
�
3Q14
�
4Q13
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Assets
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Cash and amounts due from depository institutions
�
$
10,550

�
$
17,209

�
$
8,333

�
$
7,314

�
$
8,518

�
$
(6,659
)
�
$
2,032

Interest-bearing deposits in other financial institutions
�
470,608

�
459,271

�
499,400

�
549,593

�
590,231

�
11,337

�
(119,623
)
Cash and cash equivalents
�
481,158

�
476,480

�
507,733

�
556,907

�
598,749

�
4,678

�
(117,591
)
Investment securities available-for-sale
�
640,086

�
532,447

�
494,874

�
454,053

�
387,048

�
107,639

�
253,038

Loans receivable (1)
�
1,634,529

�
1,504,725

�
1,441,606

�
1,413,192

�
1,380,969

�
129,804

�
253,560

Allowance for loan losses (2)
�
(28,638
)
�
(27,231
)
�
(35,607
)
�
(36,040
)
�
(34,065
)
�
(1,407
)
�
5,427

Net loans
�
1,605,891

�
1,477,494

�
1,405,999

�
1,377,152

�
1,346,904

�
128,397

�
258,987

Mortgage loans held for sale
�
3,174

�
1,283

�
726

�
1,552

�
897

�
1,891

�
2,277

Other real estate owned (3)
�
8,568

�
15,169

�
23,938

�
38,437

�
47,187

�
(6,601
)
�
(38,619
)
Premises and equipment, net
�
35,286

�
34,696

�
34,820

�
34,592

�
33,318

�
590

�
1,968

Goodwill
�
10,606

�
10,381

�
10,381

�
10,381

�
10,381

�
225

�
225

Other intangibles, net
�
2,752

�
1,511

�
1,663

�
1,824

�
1,986

�
1,241

�
766

SBA servicing rights
�
1,516

�


�


�


�


�
1,516

�
1,516

FDIC receivable for loss share agreements, net
�
22,320

�
26,221

�
44,775

�
70,361

�
107,843

�
(3,901
)
�
(85,523
)
Bank owned life insurance
�
41,479

�
41,136

�
40,803

�
40,474

�
40,145

�
343

�
1,334

Other assets
�
29,374

�
30,779

�
20,093

�
36,758

�
30,930

�
(1,405
)
�
(1,556
)
Total assets
�
$
2,882,210

�
$
2,647,597

�
$
2,585,805

�
$
2,622,491

�
$
2,605,388

�
$
234,613

�
$
276,822

Liabilities and Shareholders Equity
�
�
�
�
�
�
�
�
�
�
�


�


Noninterest-bearing deposits
�
$
577,295

�
$
524,634

�
$
461,434

�
$
471,414

�
$
468,138

�
$
52,661

�
$
109,157

Interest-bearing deposits
�
1,814,387

�
1,631,340

�
1,653,779

�
1,669,647

�
1,660,187

�
183,047

�
154,200

Total deposits
�
2,391,682

�
2,155,974

�
2,115,213

�
2,141,061

�
2,128,325

�
235,708

�
263,357

Securities sold under agreements to repurchase
�


�


�


�


�
1,216

�


�
(1,216
)
Notes payable
�
2,771

�
2,776

�
2,779

�
4,371

�
5,682

�
(5
)
�
(2,911
)
Other liabilities
�
23,662

�
30,570

�
19,506

�
35,620

�
32,982

�
(6,908
)
�
(9,320
)
Total liabilities
�
2,418,115

�
2,189,320

�
2,137,498

�
2,181,052

�
2,168,205

�
228,795

�
249,910

Total shareholders equity
�
464,095

�
458,277

�
448,307

�
441,439

�
437,183

�
5,818

�
26,912

Total liabilities and shareholders equity
�
$
2,882,210

�
$
2,647,597

�
$
2,585,805

�
$
2,622,491

�
$
2,605,388

�
$
234,613

�
$
276,822

�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Capital Ratios
�
�
�
�
�
�
�
�
�
�
�


�


Average equity to average assets
�
16.13
%
�
17.20
%
�
17.14
%
�
17.02
%
�
16.75
%
�
(1.07
)%
�
(.62
)%
Leverage ratio
�
15.90

�
17.16

�
16.84

�
16.67

�
16.55

�
(1.26
)
�
(.65
)
Tier I risk-based capital ratio
�
23.12

�
25.17

�
27.06

�
27.20

�
27.85

�
(2.05
)
�
(4.73
)
Total risk-based capital ratio
�
24.37

�
26.42

�
28.32

�
28.47

�
29.11

�
(2.05
)
�
(4.74
)
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Shares Issued and Outstanding
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Common stock
�
32,269,604

�
32,271,466

�
32,130,645

�
32,123,645

�
32,094,145

�
(1,862
)
�
175,459

�
(1)� Loans covered by loss share agreements with the FDIC were approximately $99.5 million at 4Q14, $114.2 million at 3Q14, $211.3 million at 2Q14, $246.3 million at 1Q14 and $257.5 million at 4Q13.
(2) Allowance for loan losses on purchased credit impaired loans was approximately $10.2 million at 4Q14, $8.4 million at 3Q14, $17.7 million at 2Q14, $19.2 million at 1Q14 and $17.4 million at 4Q13.
(3) Other real estate owned covered by loss share agreements with the FDIC was approximately $3.3 million at 4Q14, $11.2 million at 3Q14, $23.2 million at 2Q14, $37.5 million at 1Q14 and $46.2 million at 4Q13.


6


State Bank Financial Corporation
4Q14 Financial Supplement: Table 3
Condensed Consolidated Income Statements
Quarterly (Unaudited)
�
�
�
�
�
�
�
�
�
�
�
�
4Q14 change vs
(Dollars�in�thousands,�except�per�share� amounts)
�
4Q14
�
3Q14
�
2Q14
�
1Q14
�
4Q13
�
3Q14
�
4Q13
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Net Interest Income:
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Interest income on invested funds
�
$
2,928

�
$
2,545

�
$
2,522

�
$
2,493

�
$
2,416

�
$
383

�
$
512

Interest income on loans
�
17,416

�
16,162

�
15,350

�
15,248

�
15,826

�
1,254

�
1,590

Accretion income on loans
�
14,124

�
21,110

�
17,087

�
26,536

�
48,065

�
(6,986
)
�
(33,941
)
Interest expense
�
1,923

�
1,857

�
1,846

�
1,894

�
1,961

�
66

�
(38
)
Net interest income
�
32,545

�
37,960

�
33,113

�
42,383

�
64,346

�
(5,415
)
�
(31,801
)
Provision for (recovery of) loan losses
�
1,189

�
416

�
701

�
590

�
(98
)
�
773

�
1,287

Net interest income after provision for (recovery of) loan losses
�
31,356

�
37,544

�
32,412

�
41,793

�
64,444

�
(6,188
)
�
(33,088
)
Noninterest Income:
�
�
�
�
�
�
�
�
�
�
�


�


Accretion (amortization) of FDIC receivable for loss share agreements
�
1,652

�
(196
)
�
(1,949
)
�
(15,292
)
�
(31,372
)
�
1,848

�
33,024

Service charges on deposits
�
1,274

�
1,206

�
1,196

�
1,158

�
1,304

�
68

�
(30
)
Mortgage banking income
�
322

�
191

�
163

�
159

�
153

�
131

�
169

Gain on sale of investment securities
�
223

�


�
12

�
11

�


�
223

�
223

Payroll fee income
�
1,050

�
875

�
822

�
953

�
879

�
175

�
171

ATM income
�
624

�
621

�
636

�
590

�
604

�
3

�
20

Bank-owned life insurance income
�
343

�
333

�
329

�
329

�
333

�
10

�
10

SBA income
�
392

�
27

�
31

�
27

�
35

�
365

�
357

Other
�
1,057

�
371

�
159

�
(97
)
�
682

�
686

�
375

Total noninterest income
�
6,937

�
3,428

�
1,399

�
(12,162
)
�
(27,382
)
�
3,509

�
34,319

Noninterest Expense:
�
�
�
�
�
�
�
�
�
�
�


�


Salaries and employee benefits
�
17,797

�
14,644

�
14,575

�
15,077

�
14,500

�
3,153

�
3,297

Occupancy and equipment
�
2,615

�
2,440

�
2,314

�
2,529

�
2,330

�
175

�
285

Data processing
�
1,909

�
1,758

�
1,714

�
1,672

�
1,595

�
151

�
314

Legal and professional fees
�
844

�
851

�
731

�
1,014

�
1,154

�
(7
)
�
(310
)
Marketing
�
491

�
453

�
548

�
332

�
369

�
38

�
122

Federal deposit insurance premiums and other regulatory fees
�
393

�
356

�
337

�
334

�
303

�
37

�
90

Loan collection and OREO costs
�
(112
)
�


�
(32
)
�
624

�
733

�
(112
)
�
(845
)
Amortization of intangibles
�
257

�
152

�
161

�
162

�
164

�
105

�
93

Other
�
1,605

�
1,856

�
1,728

�
1,339

�
1,570

�
(251
)
�
35

Total noninterest expense
�
25,799

�
22,510

�
22,076

�
23,083

�
22,718

�
3,289

�
3,081

Income Before Income Taxes
�
12,494

�
18,462

�
11,735

�
6,548

�
14,344

�
(5,968
)
�
(1,850
)
Income tax expense
�
4,909

�
6,958

�
4,228

�
2,226

�
4,927

�
(2,049
)
�
(18
)
Net Income
�
$
7,585

�
$
11,504

�
$
7,507

�
$
4,322

�
$
9,417

�
$
(3,919
)
�
$
(1,832
)
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Net Income Per Share
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Basic
�
$
.24

�
$
.36

�
$
.23

�
$
.13

�
$
.29

�
$
(.12
)
�
$
(.05
)
Diluted
�
.22

�
.34

�
.22

�
.13

�
.28

�
(.12
)
�
(.06
)
Weighted Average Shares Outstanding
�
�
�
�
�
�
�
�
�
�
�


�


Basic
�
32,271,537

�
32,206,889

�
32,126,260

�
32,094,473

�
32,086,781

�
64,648

�
184,756

Diluted
�
33,935,366

�
33,755,595

�
33,589,797

�
33,644,135

�
33,519,550

�
179,771

�
415,816




7


State Bank Financial Corporation
4Q14 Financial Supplement: Table 4
Condensed Consolidated Income Statements
Year to Date (Unaudited)
�
�
Years Ended December 31
�
YTD Change
(Dollars�in�thousands,�except�per�share�amounts)
�
2014
�
2013
�
�
�
�
�
�
�
�
Net Interest Income:
�
�
�
�
�
�
Interest income on invested funds
�
$
10,488

�
$
10,198

�
$
290

Interest income on loans
�
64,176

�
61,010

�
3,166

Accretion income on loans
�
78,857

�
122,466

�
(43,609
)
Interest expense
�
7,520

�
7,933

�
(413
)
Net interest income
�
146,001

�
185,741

�
(39,740
)
Provision for (recovery of) loan losses
�
2,896

�
(2,487
)
�
5,383

Net interest income after provision for (recovery of) loan losses
�
143,105

�
188,228

�
(45,123
)
Noninterest Income:
�
�
�
�
�
�
Amortization of FDIC receivable for loss share agreements
�
(15,785
)
�
(87,884
)
�
72,099

Service charges on deposits
�
4,834

�
5,156

�
(322
)
Mortgage banking income
�
835

�
1,008

�
(173
)
Gain on sale of investment securities
�
246

�
1,081

�
(835
)
Payroll fee income
�
3,700

�
3,143

�
557

ATM income
�
2,471

�
2,448

�
23

Bank-owned life insurance income
�
1,334

�
1,354

�
(20
)
SBA income
�
477

�
166

�
311

Other
�
1,490

�
2,581

�
(1,091
)
Total noninterest income
�
(398
)
�
(70,947
)
�
70,549

Noninterest Expense:
�
�
�
�
�
�
Salaries and employee benefits
�
62,093

�
62,236

�
(143
)
Occupancy and equipment
�
9,898

�
9,767

�
131

Data processing
�
7,053

�
6,087

�
966

Legal and professional fees
�
3,440

�
4,989

�
(1,549
)
Marketing
�
1,824

�
1,504

�
320

Federal insurance premiums and other regulatory fees
�
1,420

�
2,315

�
(895
)
Loan collection and OREO costs
�
480

�
4,339

�
(3,859
)
Amortization of intangibles
�
732

�
1,202

�
(470
)
Other
�
6,528

�
5,528

�
1,000

Total noninterest expense
�
93,468

�
97,967

�
(4,499
)
Income Before Income Taxes
�
49,239

�
19,314

�
29,925

Income tax expense
�
18,321

�
6,567

�
11,754

Net Income
�
$
30,918

�
$
12,747

�
$
18,171

�
�
�
�
�
�
�
Net Income Per Share
�
�
�
�
�
�
Basic
�
$
.96

�
$
.40

�
$
.56

Diluted
�
.92

�
.38

�
.54

Weighted Average Shares Outstanding
�
�
�
�
�
�
Basic
�
32,175,363

�
31,978,844

�
196,519

Diluted
�
33,736,352

�
33,290,565

�
445,787


8


����
State Bank Financial Corporation
4Q14 Financial Supplement: Table 5
Condensed Consolidated Composition of Loans and Deposits at Period Ends
Quarterly (Unaudited)
�
�
�
�
�
�
�
�
�
�
�
�
4Q14 change vs
(Dollars�in�thousands)
�
4Q14
�
3Q14
�
2Q14
�
1Q14
�
4Q13
�
3Q14
�
4Q13
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Composition of Loans
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Organic loans:
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Construction, land & land development
�
$
310,987

�
$
324,008

�
$
271,525

�
$
259,488

�
$
251,043

�
$
(13,021
)
�
$
59,944

Other commercial real estate
�
609,478

�
591,672

�
616,418

�
593,260

�
550,474

�
17,806

�
59,004

Total commercial real estate
�
920,465

�
915,680

�
887,943

�
852,748

�
801,517

�
4,785

�
118,948

Residential real estate
�
91,448

�
80,231

�
75,683

�
67,896

�
66,835

�
11,217

�
24,613

Owner-occupied real estate
�
188,933

�
164,514

�
167,129

�
171,221

�
174,858

�
24,419

�
14,075

Commercial, financial & agricultural
�
90,930

�
102,417

�
91,552

�
66,728

�
71,006

�
(11,487
)
�
19,924

Lease financing
�
19,959

�
19,636

�


�


�


�
323

�
19,959

Consumer
�
8,658

�
9,445

�
7,997

�
8,320

�
9,259

�
(787
)
�
(601
)
Total organic loans
�
1,320,393

�
1,291,923

�
1,230,304

�
1,166,913

�
1,123,475

�
28,470

�
196,918

Purchased non-credit impaired loans(1):
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Construction, land & land development
�
2,166

�


�


�


�


�
2,166

�
2,166

Other commercial real estate
�
26,793

�


�


�


�


�
26,793

�
26,793

Total commercial real estate
�
28,959

�


�


�


�


�
28,959

�
28,959

Residential real estate
�
43,669

�


�


�


�


�
43,669

�
43,669

Owner-occupied real estate
�
22,743

�


�


�


�


�
22,743

�
22,743

Commercial, financial & agricultural
�
11,635

�


�


�


�


�
11,635

�
11,635

Consumer
�
791

�


�


�


�


�
791

�
791

Total purchased non-credit impaired loans
�
107,797

�


�


�


�


�
107,797

�
107,797

Purchased credit impaired loans:
�
�
�
�
�
�
�
�
�
�
�

�

Construction, land & land development
�
24,544

�
25,463

�
23,851

�
30,770

�
35,383

�
(919
)
�
(10,839
)
Other commercial real estate
�
58,680

�
54,573

�
54,212

�
65,599

�
67,573

�
4,107

�
(8,893
)
Total commercial real estate
�
83,224

�
80,036

�
78,063

�
96,369

�
102,956

�
3,188

�
(19,732
)
Residential real estate
�
78,793

�
80,859

�
86,371

�
92,509

�
95,240

�
(2,066
)
�
(16,447
)
Owner-occupied real estate
�
42,168

�
48,834

�
43,409

�
52,791

�
54,436

�
(6,666
)
�
(12,268
)
Commercial, financial & agricultural
�
1,953

�
2,790

�
3,081

�
4,228

�
4,289

�
(837
)
�
(2,336
)
Consumer
�
201

�
283

�
378

�
382

�
573

�
(82
)
�
(372
)
Total purchased credit impaired loans
�
206,339

�
212,802

�
211,302

�
246,279

�
257,494

�
(6,463
)
�
(51,155
)
Total loans
�
$
1,634,529

�
$
1,504,725

�
$
1,441,606

�
$
1,413,192

�
$
1,380,969

�
$
129,804

�
$
253,560

Composition of Deposits
�
�
�
�
�
�
�
�
�
�
�


�


Noninterest-bearing demand deposits
�
$
577,295

�
$
524,634

�
$
461,434

�
$
471,414

�
$
468,138

�
$
52,661

�
$
109,157

Interest-bearing transaction accounts
�
495,966

�
377,220

�
387,855

�
382,697

�
367,983

�
118,746

�
127,983

Savings and money market deposits
�
954,626

�
910,488

�
898,833

�
903,198

�
892,136

�
44,138

�
62,490

Time deposits less than $100,000
�
147,462

�
147,420

�
155,918

�
162,002

�
168,611

�
42

�
(21,149
)
Time deposits $100,000 or greater
�
119,241

�
107,143

�
112,705

�
116,858

�
124,827

�
12,098

�
(5,586
)
Brokered and wholesale time deposits
�
97,092

�
89,069

�
98,468

�
104,892

�
106,630

�
8,023

�
(9,538
)
Total deposits
�
$
2,391,682

�
$
2,155,974

�
$
2,115,213

�
$
2,141,061

�
$
2,128,325

�
$
235,708

�
$
263,357

�
(1) Consists of loans purchased in Bank of Atlanta acquisition.


9


State Bank Financial Corporation
4Q14 Financial Supplement: Table 6
Condensed Consolidated Organic Asset Quality Data
Quarterly (Unaudited)
�
�
�
�
�
�
�
�
�
�
�
�
4Q14 change vs
(Dollars�in�thousands)
�
4Q14
�
3Q14
�
2Q14
�
1Q14
�
4Q13
�
3Q14
�
4Q13
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Nonperforming assets:
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Nonaccrual loans
�
$
1,245

�
$
740

�
$
1,063

�
$
1,265

�
$
1,396

�
$
505

�
$
(151
)
Troubled debt restructurings
�
4,301

�
875

�
875

�
866

�
869

�
3,426

�
3,432

Total nonperforming organic loans
�
5,546

�
1,615

�
1,938

�
2,131

�
2,265

�
3,931

�
3,281

Other real estate owned
�
74

�
410

�
729

�
901

�
965

�
(336
)
�
(891
)
Total nonperforming organic assets
�
$
5,620

�
$
2,025

�
$
2,667

�
$
3,032

�
$
3,230

�
$
3,595

�
$
2,390

�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Allowance for loan losses on loans:
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Charge-offs
�
$
1,250

�
$
87

�
$
79

�
$
136

�
$
67

�
$
1,163

�
$
1,183

Recoveries
�
39

�
30

�
106

�
338

�
296

�
9

�
(257
)
Net charge-offs (recoveries)
�
$
1,211

�
$
57

�
$
(27
)
�
$
(202
)
�
$
(229
)
�
$
1,154

�
$
1,440

�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Ratios:
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Annualized QTD charge-offs (recoveries) to total average loans
�
.36
%
�
.02
%
�
(.01
)%
�
(.07
)%
�
(.08
)%
�
.34
�%
�
.44
�%
Nonperforming loans to total loans
�
.42

�
.13

�
.16

�
.18

�
.20

�
.29

�
.22

Nonperforming assets to loans + ORE
�
.43

�
.16

�
.22

�
.26

�
.29

�
.27

�
.14

Past due loans to total loans
�
.17

�
.10

�
.13

�
.14

�
.09

�
.07

�
.08

Allowance for loan losses to loans
�
1.39

�
1.46

�
1.45

�
1.44

�
1.48

�
(.07
)
�
(.09
)
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�



10


State Bank Financial Corporation
4Q14 Financial Supplement: Table 7
Condensed Consolidated Average Balances and Yield Analysis
Quarterly (Unaudited)
�
�
�
�
�
�
�
�
�
�
�
�
4Q14 change vs
(Dollars�in�thousands)
�
4Q14
�
3Q14
�
2Q14
�
1Q14
�
4Q13
�
3Q14
�
4Q13
Selected Average Balances
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Interest-bearing deposits in other financial institutions
�
$
450,362

�
$
476,190

�
$
490,009

�
$
518,362

�
$
489,046

�
$
(25,828
)
�
$
(38,684
)
Investment securities
�
603,101

�
523,488

�
481,240

�
430,696

�
379,975

�
79,613

�
223,126

Loans, excluding purchased credit impaired(1)
�
1,430,495

�
1,246,008

�
1,192,494

�
1,133,802

�
1,144,116

�
184,487

�
286,379

Purchased credit impaired loans
�
214,518

�
215,318

�
236,178

�
250,824

�
258,600

�
(215,318
)
�
(258,600
)
Total earning assets
�
2,698,476

�
2,461,004

�
2,399,921

�
2,333,684

�
2,271,737

�
237,472

�
426,739

Total nonearning assets
�
159,733

�
148,772

�
191,104

�
246,220

�
292,468

�
10,961

�
(132,735
)
Total assets
�
2,858,209

�
2,609,776

�
2,591,025

�
2,579,904

�
2,564,205

�
248,433

�
294,004

Interest-bearing transaction accounts
�
433,545

�
376,052

�
376,143

�
357,988

�
338,502

�
57,493

�
95,043

Savings�& money market deposits
�
958,782

�
896,503

�
892,168

�
894,994

�
909,999

�
62,279

�
48,783

Time deposits less than $100,000
�
152,102

�
151,358

�
159,296

�
165,158

�
173,061

�
744

�
(20,959
)
Time deposits $100,000 or greater
�
154,416

�
109,472

�
114,652

�
122,217

�
129,384

�
44,944

�
25,032

Brokered and wholesale time deposits
�
86,371

�
96,743

�
100,395

�
106,555

�
106,676

�
(10,372
)
�
(20,305
)
Notes payable
�
2,775

�
2,778

�
3,365

�
5,212

�
5,686

�
(3
)
�
(2,911
)
FHLB Advances
�
326

�


�


�


�


�
326

�
326

Securities sold under agreements to repurchase
�
4,284

�


�


�
727

�
675

�
4,284

�
3,609

Total interest-bearing liabilities
�
1,792,601

�
1,632,906

�
1,646,019

�
1,652,851

�
1,663,983

�
159,695

�
128,618

Noninterest-bearing deposits
�
554,350

�
495,531

�
465,941

�
441,875

�
431,580

�
58,819

�
122,770

Other liabilities
�
50,121

�
32,357

�
34,890

�
46,073

�
39,148

�
17,764

�
10,973

Shareholders equity
�
461,137

�
448,982

�
444,175

�
439,105

�
429,494

�
12,155

�
31,643

Total liabilities and shareholders' equity
�
2,858,209

�
2,609,776

�
2,591,025

�
2,579,904

�
2,564,205

�
248,433

�
294,004

�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Interest Margins (2)
�
�
�
�
�
�
�
�
�
�
�


�


Interest-bearing deposits in other financial institutions
�
.26
%
�
.26
%
�
.26
%
�
.27
%
�
.27
%
�

�%
�
(.01
)%
Investment securities, tax-equivalent basis(3)
�
1.73

�
1.70

�
1.84

�
2.03

�
2.19

�
.03

�
(.46
)
Loans, excluding purchased credit impaired, tax-equivalent basis (4)
�
4.85

�
5.17

�
5.19

�
5.48

�
5.52

�
(.32
)
�
(.67
)
Purchased credit impaired loans
�
26.12

�
38.90

�
29.02

�
42.91

�
73.74

�
(38.90
)
�
(73.74
)
Total earning assets
�
5.08
%
�
6.44
%
�
5.86
%
�
7.71
%
�
11.60
%
�
(1.36
)%
�
(6.52
)%
Interest-bearing transaction accounts
�
.13

�
.13

�
.12

�
.12

�
.11

�
(.13
)
�
(.11
)
Savings�& money market deposits
�
.46

�
.46

�
.45

�
.44

�
.43

�
(.46
)
�
(.43
)
Time deposits less than $100,000
�
.50

�
.51

�
.53

�
.54

�
.55

�
(.51
)
�
(.55
)
Time deposits $100,000 or greater
�
.49

�
.63

�
.66

�
.69

�
.67

�
(.63
)
�
(.67
)
Brokered and wholesale time deposits
�
1.02

�
1.08

�
.95

�
.93

�
.93

�
(1.08
)
�
(.93
)
Notes payable
�
9.01

�
9.00

�
10.37

�
11.52

�
11.44

�
(9.00
)
�
(11.44
)
FHLB Advances
�
1.22

�


�


�


�


�
1.22

�
1.22

Securities sold under agreements to repurchase
�
.09

�


�


�


�


�


�


Total interest-bearing liabilities
�
.43

�
.45

�
.45

�
.46

�
.47

�
(.45
)
�
(.47
)
Net interest spread
�
4.65

�
5.99

�
5.41

�
7.25

�
11.13

�
(5.99
)
�
(11.13
)
Net interest margin
�
4.80
%
�
6.14
%
�
5.55
%
�
7.38
%
�
11.26
%
�
(1.34
)%
�
(6.46
)%
�
(1)� Includes average nonaccrual loans of $5.6 million for 4Q14, $1.7 million for 3Q14, $2.0 million for 2Q14, $2.1 million for 1Q14, and $2.6 million for 4Q13.
(2)� Interest income or expense annualized for the applicable period.
(3)� Reflects taxable equivalent adjustments using the federal statutory tax rate of 35% in adjusting interest on tax-exempt securities to a fully taxable basis. The taxable equivalent adjustments included above amount to $4,000 for 4Q14, $7,000 for 3Q14, $11,000 for 2Q14, $11,000 for 1Q14, and $11,000 for 4Q13.
(4)� Reflects taxable equivalent adjustments using the federal statutory tax rate of 35% in adjusting tax-exempt loan interest income to a fully taxable basis. The taxable equivalent adjustments included above amount to $80,000 for 4Q14, $75,000 for 3Q14, $66,000 for 2Q14, $65,000 for 1Q14, and $97,000 for 4Q13.

11
State Bank Financial Corporation 4th Quarter 2014 Earnings Presentation Joe Evans  Chairman and CEO Sheila Ray  Executive Vice President and CFO Kim Childers  Vice Chairman and Executive Risk Officer January 29, 2015

�
2 Cautionary Note Regarding Forward-Looking Statements Certain statements contained in this presentation that are not statements of historical fact are forward-looking statements. These forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words may, would, could, will, expect, anticipate, project, believe, intend, plan and estimate, as well as similar expressions. These forward-looking statements include statements related to expected cost savings related to our recent acquisition, the sustainability of our core operating franchise, the strength of our credit metrics on our organic loans, our projected growth, our well-positioned franchise, our execution of strategic priorities, our anticipated future financial performance, and managements long-term performance goals, as well as statements relating to the anticipated effects on results of operations and financial condition from expected developments or events, including projections of future amortization of the FDIC receivable and accretion on loans, the impact of the expiration of loss share agreements, anticipated internal growth, and plans to establish or acquire banks or the assets of failed banks. These forward-looking statements involve significant risks and uncertainties that could cause our actual results to differ materially from those anticipated in such statements. Potential risks and uncertainties include the following: " the reaction to our recent acquisitions of all of the banks customers, employees and counterparties or difficulties related to the transition of services; " general economic conditions (both generally and in our markets) may be less favorable than expected, which could result in, among other things, a continued deterioration in credit quality, a further reduction in demand for credit and a further decline in real estate values; " the general decline in the real estate and lending markets, particularly in our market areas, may continue to negatively affect our financial results; " our ability to raise additional capital may be impaired if current levels of market disruption and volatility continue or worsen; " we may be unable to collect reimbursements on losses that we incur on our assets covered under loss share agreements with the FDIC as we anticipate; " costs or difficulties related to the integration of the banks we may acquire may be greater than expected; " restrictions or conditions imposed by our regulators on our operations may make it more difficult for us to achieve our goals; " legislative or regulatory changes, including changes in accounting standards and compliance requirements, may adversely affect us; " competitive pressures among depository and other financial institutions may increase significantly; " changes in the interest rate environment may reduce margins or the volumes or values of the loans we make or have acquired; " other financial institutions have greater financial resources and may be able to develop or acquire products that enable them to compete more successfully than we can; " our ability to attract and retain key personnel can be affected by the increased competition for experienced employees in the banking industry; " adverse changes may occur in the bond and equity markets; " war or terrorist activities may cause further deterioration in the economy or cause instability in credit markets; " economic, governmental or other factors may prevent the projected population, residential and commercial growth in the markets in which we operate; and " we will or may continue to face the risk factors discussed from time to time in the periodic reports we file with the SEC. For these forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this report. All subsequent written and oral forward- looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. 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 most recently ended fiscal year, for a description of some of the important factors that may affect actual outcomes.

�
3 Note: Consolidated financial results for 4Q 2014 contained throughout this presentation are unaudited; numbers may not add due to rounding 2014 Results Summary Income Statement Highlights (dollars in thousands, except per share data) 4Q14 3Q14 4Q13 FY 2014 FY 2013 Interest income on invested funds $2,928 $2,545 $2,416 $10,488 $10,198 Interest income on loans 17,416 16,162 15,826 64,176 61,010 Accretion income on loans 14,124 21,110 48,065 78,857 122,466 Interest expense 1,923 1,857 1,961 7,520 7,933 Net interest income 32,545 37,960 64,346 146,001 185,741 Provision for (recovery of) loan losses 1,189 416 (98) 2,896 (2,487) Net interest income after provision for loan losses 31,356 37,544 64,444 143,105 188,228 Accretion (amortization) of FDIC Receivable 1,652 (196) (31,372) (15,785) (87,884) Noninterest income 5,285 3,624 3,990 15,387 16,937 Total noninterest income 6,937 3,428 (27,382) (398) (70,947) Total noninterest expense 25,799 22,510 22,718 93,468 97,967 Income before income taxes 12,494 18,462 14,344 49,239 19,314 Income tax expense 4,909 6,958 4,927 18,321 6,567 Net income $7,585 $11,504 $9,417 $30,918 $12,747 Diluted net income per share .22 .34 .28 .92 .38 Dividends per share .04 .04 .03 .15 .12 Tangible book value per share 13.97 13.83 13.24 Balance Sheet Highlights (period-end) Total Loans $1,634,529 $1,504,725 $1,380,969 Organic 1,320,393 1,291,923 1,123,475 Purchased non-credit impaired 107,797 - - Purchased credit impaired 206,339 212,802 257,494 Total assets 2,882,210 2,647,597 2,605,388 Noninterest-bearing deposits 577,295 524,634 468,138 Total deposits 2,391,682 2,155,974 2,128,325 Shareholders equity 464,095 458,277 437,183

�
4 Financial Results: Revenue 1 Excludes accretion income on loans 2 Excludes accretion/(amortization) of FDIC receivable � Total interest income (excluding accretion) of $20.3mm increased $1.6mm versus the prior quarter � Noninterest income of $5.3mm in 4Q14, excluding indemnification asset accretion/(amortization), increased versus the prior quarter due primarily to higher prepayment fees on loans, SBA, mortgage and payroll fee income � Payroll fee income increased $175 thousand in the quarter to a record-high $1.1mm ($ i n t h o u sa n d s) ($ i n t h o u sa n d s) ($ i n t h o u sa n d s) 3 Accretion income on loans including accretion/(amortization) of FDIC receivable 15,000 16,000 17,000 18,000 19,000 20,000 21,000 4Q13 1Q14 2Q14 3Q14 4Q14 Interest Income 1 5,000 10,000 15,000 20,000 25,000 4Q13 1Q14 2Q14 3Q14 4Q14 Net PCI Portfolio Revenue 3 0 1,000 2,000 3,000 4,000 5,000 6,000 4Q13 1Q14 2Q14 3Q14 4Q14 Noninterest Income 2 Noninterest Income Gains on Securities

�
5 Financial Results: Expense 1 Excludes loan collection and OREO costs � Noninterest expense, excluding loan collection and OREO costs, increased primarily due to severance expenses ($1.5mm), the addition of Bank of Atlanta ($1.1mm) and new hires in targeted growth areas � Recorded approximately $306 thousand of merger-related expenses in the fourth quarter � We expect an additional $315 thousand of cost savings in 1Q15 related to Bank of Atlanta conversion ($ i n t h o u sa n d s) ($ i n t h o u sa n d s) � Gains on sales of OREO properties exceeded loan collection and OREO costs for the third consecutive quarter (200) 0 200 400 600 800 1,000 4Q13 1Q14 2Q14 3Q14 4Q14 Loan Collection and OREO Costs 10,000 15,000 20,000 25,000 30,000 4Q13 1Q14 2Q14 3Q14 4Q14 Noninterest Expense 1 Noninterest Expense One-time/Noncore Expense

�
6 Financial Results: Earning Assets ($ i n mi llio n s) ($ i n mi llio n s) ($ i n mi llio n s) 1 Organic loans; excludes purchased loans Note: New loan originations include new loans funded and net loan advances on existing commitments. Paydowns include payoffs, amortization and principal payments. 0 50 100 150 200 250 300 350 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Paydowns 1 0 200 400 600 800 1,000 1,200 1,400 1,600 1Q10 2Q 3Q 4Q 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q 3Q 4Q Total Loan Portfolio Organic & Purchased Non-Credit Impaired Purchased Credit Impaired 0 50 100 150 200 250 300 350 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 New Loan Fundings 1

�
7 Financial Results: Funding � Continued focus on increasing transaction deposits, which include NIB demand deposits and IB transaction accounts � Period-end transaction deposit accounts increased $198mm in 2014 (excluding Bank of Atlanta) � Noninterest-bearing demand deposits make up over 24% of total deposits ($ i n mi llio n s) � Total cost of funds of 33 bps is down 2 bps from the prior quarter and down 4 bps from the prior year period � Cost of funds of 13 bps on interest-bearing transaction accounts � Deposit funding mix continues to improve, contributing to low cost of funds 1.82% .33% 0.0% 0.5% 1.0% 1.5% 2.0% 1Q10 2Q 3Q 4Q 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q 3Q 4Q Cost of Funds 0 200 400 600 800 1,000 1,200 1Q10 2Q 3Q 4Q 1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q 3Q 4Q Transaction Deposit Accounts Noninterest-bearing Interest-bearing

�
8 Significant Revenue Remaining from Purchased Portfolios � As of the end of 4Q14, there remains $120mm of accretable discount to be recognized as loan accretion income � The timing of revenue recognition will continue to be somewhat uneven due to the timing of future loan pool closeouts ($ i n mi llio n s) Significant Future Benefit � Total FDIC receivable (indemnification asset) of $22mm remaining at the end of 4Q14 � FDIC clawback of $5.7mm is shown in other liabilities on the balance sheet � Successfully managed fifth-year anniversary of three loss share agreements (8 charters) in 2014 ($ i n mi llio n s) Limited Future Headwind 185 156 140 131 120 0 50 100 150 200 250 4Q13 1Q14 2Q14 3Q14 4Q14 Accretable Discount 108 70 45 26 22 0 50 100 150 200 4Q13 1Q14 2Q14 3Q14 4Q14 FDIC Receivable

�
9 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 4Q13 1Q14 2Q14 3Q14 4Q14 Organic Past Due Loan Ratio 1 Total Past Due Loans / Organic Loans ($ i n t h o u sa n d s) Credit: Organic Portfolio � Past due loans represent .17% of total organic loans � Total NPAs of $5.6mm as of 4Q14, representing .43% of organic loans and OREO � Allowance to organic loans is 1.39% at the end of 4Q14 N PL % ALL % N PA s / Orga n ic L o an s 1 Total past due loans include 30  89 day and 90+ day loans past due 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 0 2,000 4,000 6,000 8,000 10,000 4Q13 1Q14 2Q14 3Q14 4Q14 Organic Nonperforming Assets NPLs OREO NPAs / Organic Loans 0.00% 0.50% 1.00% 1.50% 2.00% 0.00% 0.20% 0.40% 0.60% 0.80% 4Q13 1Q14 2Q14 3Q14 4Q14 Organic Credit Ratios NPLs to Loans ALL to Loans

�
10 Credit: OREO ($ i n t h o u sa n d s) ($ i n t h o u sa n d s) ($ i n t h o u sa n d s) � OREO balances declined 44% linked-quarter and 82% year-over-year to end 4Q14 at $8.6mm � New OREO inflows declined for the fifth straight quarter � Nearly 90 OREO properties sold in the fourth quarter of 2014 and over 400 sold in 2014 0 10,000 20,000 30,000 40,000 50,000 60,000 4Q13 1Q14 2Q14 3Q14 4Q14 Total OREO Balances 0 5,000 10,000 15,000 20,000 25,000 30,000 4Q13 1Q14 2Q14 3Q14 4Q14 Total OREO Sales 0 5,000 10,000 15,000 20,000 25,000 4Q13 1Q14 2Q14 3Q14 4Q14 Total OREO Inflows

�
11 Summary Results Well Positioned Franchise Executing on Strategic Priorities � Efficient network in attractive markets � Management depth � Capital levels to support growth � Improving run-rate efficiency � Increasing noninterest income through expanded products and services � Leveraging treasury / payments expertise to enhance transaction deposit accounts � Prudently growing earning assets Profile � One of Georgias best-capitalized banking companies with operations in Atlanta, Middle Georgia and Augusta � Completed two healthy bank acquisitions that were announced in 2014; successful conversion of Bank of Atlanta completed in December 2014 � Treasury / payments expertise � Low cost deposit base � Strong credit metrics � Effectively grew organic loans while maintaining exceptional credit metrics � Continued improvement in deposit funding mix � Strong infrastructure in operations, compliance and risk management

�

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings