State Bank Financial Corporation

State Bank Financial — Q4 2017 Earnings Presentation

14 slides from State Bank Financial's earnings presentation, Jan 25, 2018

  1. Slide 1: 4th Quarter 2017 Earnings Presentation

    4th Quarter 2017 Earnings Presentation Tom Wiley, Vice Chairman and CEO Sheila Ray, EVP and CFO and COO David Black, EVP and CCO Joe Evans, Chairman January 25, 2018 State Bank Financial Corporation

  2. Slide 2: Cautionary Note Regarding Forward-Looking Statements

    2 Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements, which are based on certain assumptions and describe our future plans, strategies, and expectations, can ge

  3. Slide 3: 2017 Highlights

    3 2017 Highlights  Completed the all cash acquisition of AloStar Bank of Commerce on September 30, 2017, adding $908mm in assets at the time of acquisition  Successfully integrated The National Bank of Georgia and S Bank acquisitions in the first quarter  Record full year 2017 pre-tax earnings of

  4. Slide 4: 4Q17 and Full Year 2017 Results Summary

    4 4Q17 and Full Year 2017 Results Summary 1 Denotes a non-GAAP financial measure; for more information, refer to Table 8 of the 4Q17 earnings press release Note: Consolidated financial results contained throughout this presentation are unaudited; numbers may not add due to rounding Income Statement

  5. Slide 5: Notable Impacts in 4Q17

    5 Notable Impacts in 4Q17 ($ in mm) Income Before Income Taxes Effective Tax Rate Tax Expense Net Income Diluted EPS 4Q17 Reported Results (GAAP) $24,625 78.2% $19,248 $5,377 $0.14 Deferred Tax Asset Revaluation ($8,106) $8,106 $0.21 Merger Tax Election ($2,545) $2,545 $0.07 Merger Expenses $2,588 $

  6. Slide 6: Revenue Trends – Interest Income

    6 Revenue Trends – Interest Income  Growth in interest income on loans and invested funds continues to outpace the decline in accretion income  Quarterly increase in accretion income was related to unexpected PCI payoffs in 4Q17  Approximately $58mm of accretable discount remaining as of 4Q17 ($

  7. Slide 7: Revenue Trends – Noninterest Income

    7  SBA income increased 27% linked-quarter while production increased slightly, up 5.4% over 3Q17  Payroll and insurance income of $1.7mm in 4Q17, a linked-quarter increase of 14.2% Revenue Trends – Noninterest Income  Mortgage banking income of $2.6mm in 4Q17 on production of $128mm represents a

  8. Slide 8: Focused on Improving Efficiency

    8 Focused on Improving Efficiency  Full year 2017 noninterest expense impacted by the NBG, S Bank, and AloStar acquisitions:  Cost saves on NBG and S Bank acquisitions were fully realized by 2Q17  With the Alostar conversion scheduled for March 2018, we expect to achieve the projected 25% cost sa

  9. Slide 9: Core Deposit Funding

    9 Core Deposit Funding ($ i n m m ) N IB / Tot al D ep o sit s  Attractive, low-cost core deposit mix focused on transaction-based funding 1 Note: Average and period-end deposit balances for the years ended December 31 ($ in mm) 2013 % 2014 % 2015 % 2016 % 2017 % 2017 % Noninterest-bearing 413 20%

  10. Slide 10: Core Deposit Funding

    10 Core Deposit Funding  Average noninterest-bearing deposits increased to $1.15B in 4Q17, a 14.3% increase quarter over quarter  Excluding AloStar deposit portfolio, State Bank cost of funds of 40 bps is up just 6 bps since 4Q16 compared to the 100 bps rise in the Fed Funds target over the same p

  11. Slide 11: Loan Portfolio

    11 Loan Portfolio To ta l L o an s ($ in m m ) 1 New loan fundings include new loans funded and net loan advances on existing commitments 1  New loan originations and fundings in excess of $508mm in 4Q17 is a 20% increase over previous quarter and total originations for 2017 increased 8% over 2016

  12. Slide 12: Loan Portfolio – C&I and OORE

    12 Loan Portfolio – C&I and OORE Commercial & Industrial and Owner-Occupied Real Estate Composition 1 Organic and PNCI loans as of December 31, 2017  Significant opportunity for growth of the C&I portfolio through new targeted lines of business : Lender Finance, Asset Based Lending, and Equipment F

  13. Slide 13: Loan Portfolio – CRE Composition

    13 Loan Portfolio – CRE Composition 1 Organic and PNCI loans as of December 31, 2017 Commercial Real Estate Composition  Significant industry, client, source of repayment, and geographic diversity in the Other CRE and AD&C portfolios  Proactive management of industry segments within the Other CRE

  14. Slide 14: Asset Quality

    14  PCI loans decreased 13.77% quarter over quarter to $176mm  Over 90% of PCI loans are current as of 4Q17  OREO balances of $895k as of 4Q17, down from $1.3mm at 3Q17 and $10.9mm at 4Q16 Asset Quality ($ i n m m )  Total organic NPAs of $7.4mm at 4Q17 representing .31% of organic loans and ORE

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