State Bank Financial Corporation
State Bank Financial — Q1 2018 Earnings Presentation
11 slides from State Bank Financial's earnings presentation, Apr 26, 2018
Slide 1: 1st Quarter 2018 Earnings Presentation
1st Quarter 2018 Earnings Presentation Tom Wiley, Vice Chairman and CEO Sheila Ray, EVP and CFO and COO David Black, EVP and CCO Joe Evans, Chairman April 26, 2018 State Bank Financial Corporation
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
Slide 3: 1Q 2018 Results Summary
3 1Q 2018 Results Summary 1 Denotes a non-GAAP financial measure; for more information, refer to Table 7 of the 1Q18 earnings press release Note: Consolidated financial results contained throughout this presentation are unaudited; numbers may not add due to rounding Record net income of $17.4mm, o
Slide 4: Revenue Trends – Interest Income
4 Revenue Trends – Interest Income Interest income (excluding accretion) of $55mm in 1Q18, a 38% increase compared to $40mm in 1Q17 Interest income on invested funds increased 13% to $6.2mm despite a $60mm decrease in the average balance year over year Accretion represented less than 10% of to
Slide 5: Revenue Trends – Noninterest Income
5 SBA income of $1.2mm, up from 1Q17 as production increased to $18.2mm in 1Q18 Payroll and insurance income of $1.8mm in 1Q18, an 18% increase year over year Revenue Trends – Noninterest Income Mortgage banking income of $2.9mm in 1Q18, up slightly compared to 1Q17, with production of $112mm
Slide 6: Focused on Improving Efficiency
6 Focused on Improving Efficiency Noninterest expense declined 3% from prior quarter, due primarily to lower merger-related expenses Noninterest expense is expected to decline as we achieve the projected 25% cost save target related to the AloStar acquisition during 2Q18 1Q18 Burden Ratio1 of
Slide 7: Deposit Funding Mix
7 Deposit Funding Mix ($ i n m m ) Attractive, low-cost core deposit mix focused on transaction-based funding 1 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 2014 2015 2016 2017 1Q18 Average Deposit Composition NIB IB Transaction Savings & MMA CDs ($ in mm) 2014 % 2015 % 2016 % 2017 % 1Q18
Slide 8: Deposit Funding Mix
8 Deposit Funding Mix Average noninterest-bearing deposits represent 26% of total deposits Cost of funds increased 3bps from the previous quarter to 55bps in 1Q18 8% deposit beta in 1Q18 is expected to increase throughout the year as competition for deposits increases ($ i n m m ) 1 Correspond
Slide 9: Loan Portfolio
9 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 $515mm in 1Q18 Organic and PNCI loans increased $104mm in 1Q18 from 4Q17, as organic growth of $149mm was par
Slide 10: Loan Portfolio Composition
10 Loan Portfolio Composition 1 Organic and PNCI loans as of March 31, 2018 Commercial Real Estate Composition ($ in mm) Organic PNCI Total % of Total CRE CRE Retail $251 $50 $301 19% Office 172 55 227 14% Hospitality 159 26 185 12% Multifamily 126 45 171 10% Industrial 56 26 82 5% Sr. Housing 37 10
Slide 11: Asset Quality
11 PCI loans decreased 10.3% quarter over quarter to $158mm Over 90% of PCI loans are current as of 1Q18 OREO balances of $4.2mm as of 1Q18 Asset Quality ($ i n m m ) Total organic NPAs of $13mm at 1Q18 represented .52% of organic loans and OREO Past due organic loans at .22% to organic lo