State Bank Financial Corporation
State Bank Financial — Investor Presentation (May 2018)
18 slides from State Bank Financial's investor presentation, May 7, 2018
Slide 1: State Bank Financial Corporation Investor Presentation May 2018
State Bank Financial Corporation Investor Presentation May 2018
Slide 2: Cautionary Note Regarding Forward-Looking Statements
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 gene
Slide 3: State Bank Financial Corporation Profile
State Bank Financial Corporation Profile STBZ Profile . Headquartered in Atlanta, Georgia . State Bank operates 32 full-service banking offices and 6 mortgage origination offices in 7 of the 8 largest MSAs in Georgia . Completed conversion of AloStar Bank of Commerce in March 2018 . AloStar adds sca
Slide 4: Investment Thesis
Investment Thesis . Executive management team with a 30+ year track record in Georgia of successful acquisitions / integrations and building long-term shareholder value . Attractive core deposit base with resulting low deposit beta . Excellent credit metrics with minimal levels of NPAs, NCOs, and pa
Slide 5: Acquisition History
Acquisition History Prior to July 2009 Change of Control $4.9 billion in assets $35 million in assets 2 Branches in Middle Georgia as of 3/31/2018 5
Slide 6: Strong Core Deposit Base with Significant Opportunity for Growth
Strong Core Deposit Base with Significant Opportunity for Growth ($ in 000) STBZ Total Region # of Full % of Deposits / Service Market Deposits / Region1 Deposits Deposits Branch Branches Share Deposits Branch Atlanta $1,271,128 30% $211,855 6 0.8% $163,045,564 $135,532 Macon / Warner Robins 1,356,8
Slide 7: Strategic Outlook
Strategic Outlook Solid Foundation Built on Forward Vision Proven Performance Management Depth Grow Commercial Relationships by Targeting Disciplined and Net Funding Segments Experienced Acquirer Provide Best In-Class Client Balance Sheet Strength Experience Scale Efficient Asset- Stro
Slide 8: Diversified Lines of Business
Diversified Lines of Business ABL / Lender Finance Commercial Real Estate Patriot Capital Strong reputation in middle market Highly efficient asset-generating Leading supplier of equipment financing asset-based lending; national line of business and a core to retail petroleum industry since 2000 foo
Slide 9: 1Q 2018 Financial Results
1Q 2018 Financial Results 9
Slide 10: 1Q 2018 Results Summary
1Q 2018 Results Summary Income Statement Highlights . Record net income of $17.4mm, ($ in 000s, except per share data) 1Q18 4Q17 1Q17 Interest income on loans $48,444 $46,926 $34,060 or $.44 per diluted share in Accretion income on loans 5,946 10,671 7,677 1Q18 Interest income on invested funds 6,17
Slide 11: Revenue Trends – Interest Income
Revenue Trends – Interest Income . Interest Income Interest income (excluding accretion) 60,000 of $55mm in 1Q18, a 38% increase 50,000 compared to $40mm in 1Q17 40,000 . Interest income on invested funds 30,000 increased 13% to $6.2mm despite a ($ in ($ 000s) 20,000 $60mm decrease in the average ba
Slide 12: Revenue Trends – Noninterest Income
Revenue Trends – Noninterest Income . Total 1Q18 noninterest income of $10.5mm up 3% . Mortgage banking income of $2.9mm in 1Q18, up slightly linked-quarter, and up 11% from 1Q17 compared to 1Q17, with production of $112mm in 1Q18 12,000 4,000 200 Production ($ in mm) in ($ Production 9,000 3,000 15
Slide 13: Focused on Improving Efficiency
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 2.
Slide 14: Deposit Funding Mix
Deposit Funding Mix . Attractive, low-cost core deposit mix focused on transaction-based funding Average Deposit Composition 4,500 4,000 3,500 3,000 2,500 ($ in ($ mm) 2,000 1,500 1,000 500 0 2014 2015 2016 2017 1Q18 NIB IB Transaction Savings & MMA CDs Average Balances 1 ($ in mm) 2014 % 2015 % 201
Slide 15: Deposit Funding Mix – Average Transaction Deposits
Deposit Funding Mix Average Transaction Deposits . Average noninterest-bearing 1,400 .60% deposits represent 26% of total 1,200 deposits .50% 1,000 . .40% Cost of funds increased 3bps from 800 the previous quarter to 55bps in .30% 1Q18 in ($ mm) 600 .20% 400 . 8% deposit beta in 1Q18 is 200 .10% exp
Slide 16: Loan Portfolio
Loan Portfolio Total Loan Portfolio 4,000 600 New Loan Fundings ($ in mm) in ($ Fundings Loan New 3,500 500 3,000 2,500 400 2,000 300 1,500 200 1,000 500 100 Total Loans ($ ($ TotalLoans mm) in 0 0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Organic PNCI PCI New Loan Fundings1 .
Slide 17: Loan Portfolio Composition
Loan Portfolio Composition 1 Commercial Real Estate Composition Loan Portfolio Other % of Total ($ in mm) Organic PNCI Total CRE 3% Other CRE CRE 34% Retail $251 $50 $301 19% SFR 8% Office 172 55 227 14% Hospitality 159 26 185 12% Construction, Multifamily 126 45 171 10% Land & Land Development Indu
Slide 18: Asset Quality
Asset Quality . Total organic NPAs of $13mm at 1Q18 Nonperforming Loans represented .52% of organic loans and 20 1.00% OREO 15 0.75% . Past due organic loans at .22% to organic loans at 1Q18 10 0.50% ($ in ($ mm) . Annualized net charge-offs of .09% in 1Q18 5 0.25% . Allowance for organic loans was
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