STBZ State Bank Financial Corp.. (delisted)

State Bank Financial Corporation (NASDAQ:STBZ) today announced unaudited financial results for the third quarter ended September 30, 2017.  Net income for the third quarter of 2017 was $14.4 million, compared to $15.2 million in the second quarter of 2017 and $12.4 million in the third quarter of 2016.  The linked-quarter decline was primarily attributable to a reduction in loan recovery income of $2.3 million.  Fully diluted earnings per share were $.37 in the third quarter of 2017, compared to $.39 in the second quarter of 2017 and $.34 in the third quarter of 2016.

Joe Evans, Chairman of State Bank Financial, commented, “I am extremely pleased with our team’s ability to promptly close the meaningfully accretive AloStar transaction in the third quarter. I look forward to closing out 2017 with a full quarter of AloStar's earnings on top of what was already shaping up to be an outstanding year for State Bank. AloStar brings a talented team with deep industry knowledge and a robust pipeline that will help us jumpstart 2018.”

Operating Highlights

Interest income on loans improved to $35.4 million in the third quarter of 2017, a $528,000 increase from the second quarter of 2017 and an $8.8 million increase from the third quarter of 2016.  Net interest income of $44.3 million in the third quarter of 2017 decreased from $46.5 million in the second quarter of 2017 but increased from $38.1 million in the third quarter of 2016.  Accretion income on loans was $6.5 million in the third quarter of 2017, down from $9.2 million in the second quarter of 2017 and $9.3 million in the third quarter of 2016.  As of September 30, 2017, approximately $67 million of accretable discount remains to be recognized as loan accretion income.

Noninterest income was $9.7 million in the third quarter of 2017, compared to $10.5 million in the second quarter of 2017 and $9.8 million in the third quarter of 2016.  Revenues in mortgage and SBA declined $303,000 and $519,000, respectively, in the third quarter of 2017, compared to the second quarter of 2017 while payroll and insurance income increased $69,000.

Total noninterest expense for the third quarter of 2017 was $31.6 million, compared to $32.0 million in the second quarter of 2017 and $28.5 million in the third quarter of 2016.  The $426,000 linked-quarter decrease was primarily due to lower commission, incentive, and employee benefits costs, which were down $421,000 from the previous quarter due to lower production levels in noninterest income lines.

Financial Condition

Comparison of period-end balance sheet metrics for the quarter ended September 30, 2017 to prior periods is materially affected by the acquisition of AloStar Bank of Commerce, which was completed on September 30, 2017.  Average balance sheet metrics for the quarter were not impacted by the acquisition.

Total assets at September 30, 2017, were $5.1 billion, up from $4.2 billion at June 30, 2017.  Total loans were $3.6 billion at September 30, 2017, up $691.8 million from the second quarter of 2017 due to $718.6 million of loans acquired from AloStar Bank of Commerce.  Period-end organic loans increased to $2.3 billion at September 30, 2017, an increase of $29.2 million from the second quarter of 2017.  Purchased non-credit impaired and purchased credit impaired loans, excluding the AloStar acquisition, decreased to $549.6 million at the end of the third quarter of 2017, a $55.9 million linked-quarter decline.

Tom Wiley, Vice Chairman and CEO, commented “Reporting $14.4 million in net income for the quarter reflects the increasingly strong performance of the core bank.  The fundamental trends remain strong, our team is intently focused on delivering an exceptional experience for our clients, and we are very excited about the complementary opportunity AloStar represents for the future of our combined franchise.”

Credit quality metrics remain solid at September 30, 2017.  Past due organic and purchased non-credit impaired loans were .12% and .48% of their respective portfolios. The provision for loan losses on organic and purchased non-credit impaired loans was $1.3 million in the third quarter of 2017 and was primarily attributable to net charge-offs, organic loan growth, 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 third quarter of 2017.

Total deposits at September 30, 2017, were $4.2 billion, up $788.4 million from $3.5 billion at June 30, 2017, including $705.6 million of deposits acquired from AloStar Bank of Commerce. Period-end transaction accounts, comprised of noninterest-bearing demand deposits and interest-bearing transaction accounts, increased $198.3 million from the second quarter of 2017 inclusive of the acquisition.  Noninterest-bearing demand deposits represented 27.8% of total deposits as of September 30, 2017.  Average noninterest-bearing demand deposits were $1.0 billion, a $32.0 million increase from the second quarter of 2017 and a $181.0 million increase from the third quarter of 2016.

Tangible book value per share was $14.01 at the end of the third quarter of 2017.  State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 13.37% and a Tier I risk-based capital ratio of 12.21%.

Detailed Results

Supplemental tables displaying financial results for the third quarter of 2017, the previous four quarters and year-to-date 2017 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 3Q17 Financial Supplement: Table 8, 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:  1.800.630.4153

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 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), with approximately $5.1 billion in assets as of September 30, 2017, 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,” “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, our expectation that the AloStar Bank of Commerce transaction will meaningfully enhance our earnings through significant earnings accretion, and statements regarding the impact of AloStar's pipeline on our future 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 conversion of AloStar's operating systems and procedures may take longer than anticipated or may be more costly than anticipated or have unanticipated adverse results relating to the Company's or AloStar's existing businesses, 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
3Q17 Financial Supplement: Table 1
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
																						3Q17 change vs
(Dollars in thousands, except per share  amounts)		3Q17				2Q17				1Q17				4Q16				3Q16				2Q17				3Q16
Income Statement Highlights
Interest income on loans		$	35,400			$	34,872			$	34,060			$	26,696			$	26,580			$	528			$	8,820
Accretion income on loans		6,520				9,228				7,677				10,271				9,335				(2,708		)		(2,815		)
Interest income on invested funds		5,782				5,747				5,460				4,810				4,714				35				1,068
Total interest income		47,702				49,847				47,197				41,777				40,629				(2,145		)		7,073
Interest expense		3,370				3,369				3,239				2,631				2,504				1				866
Net interest income		44,332				46,478				43,958				39,146				38,125				(2,146		)		6,207
Provision for loan and lease losses(organic & PNCI loans)		1,300				1,470				1,361				300				7				(170		)		1,293
Provision for loan and lease losses   (purchased credit impaired loans)		(885		)		375				(359		)		(23		)		81				(1,260		)		(966		)
Provision for loan and lease losses		415				1,845				1,002				277				88				(1,430		)		327
Total noninterest income		9,682				10,476				9,459				9,911				9,769				(794		)		(87		)
Total noninterest expense		31,571				31,997				34,565				32,875				28,480				(426		)		3,091
Income before income taxes		22,028				23,112				17,850				15,905				19,326				(1,084		)		2,702
Income tax expense		7,592				7,909				6,292				5,578				6,885				(317		)		707
Net income		$	14,436			$	15,203			$	11,558			$	10,327			$	12,441			$	(767	)		$	1,995
Common Share Data
Basic earnings per share		$	.37			$	.39			$	.30			$	.28			$	.34			$	(.02	)		$	.03
Diluted earnings per share		.37				.39				.30				.28				.34				(.02		)		.03
Cash dividends declared per share		.14				.14				.14				.14				.14				—				—
Book value per share		16.48				16.23				15.96				15.80				15.21				.25				1.27
Tangible book value per share (1)		14.01				13.94				13.66				13.48				13.99				.07				.02
Market price per share (quarter end)		28.65				27.12				26.12				26.86				22.82				1.53				5.83
Common Shares Outstanding
Common stock		38,991,022				38,967,972				38,870,424				38,845,573				36,894,553				23,050				2,096,469
Weighted average shares outstanding:
Basic		37,918,753				37,896,125				37,867,718				35,904,009				35,863,183				22,628				2,055,570
Diluted		37,963,141				37,942,483				37,954,585				36,009,098				35,965,948				20,658				1,997,193
Average Balance Sheet Highlights
Loans		$	2,893,187			$	2,905,415			$	2,846,571			$	2,431,512			$	2,406,629			$	(12,228	)		$	486,558
Assets		4,178,731				4,200,843				4,181,961				3,636,544				3,564,860				(22,112		)		613,871
Deposits		3,437,329				3,413,831				3,423,506				2,975,510				2,866,822				23,498				570,507
Equity		638,620				627,294				617,009				559,561				557,365				11,326				81,255
Tangible equity (1)		550,002				538,153				527,603				514,982				512,265				11,849				37,737

State Bank Financial Corporation
3Q17 Financial Supplement: Table 1 (continued)
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
																	3Q17 change vs
(Dollars in thousands, except per share    amounts)		3Q17			2Q17			1Q17			4Q16			3Q16			2Q17			3Q16
Key Metrics (2)
Return on average assets		1.37	%		1.45	%		1.12	%		1.13	%		1.39	%		(.08	)%		(.02	)%
Return on average equity		8.97			9.72			7.60			7.34			8.88			(.75	)		.09
Yield on earning assets		4.85			5.11			4.93			4.87			4.84			(.26	)		.01
Cost of funds		.38			.38			.37			.35			.34			—			.04
Rate on interest-bearing liabilities		.54			.53			.52			.49			.47			.01			.07
Net interest margin		4.51			4.76			4.59			4.56			4.54			(.25	)		(.03	)
Leverage ratio (3)		13.37			13.23			13.04			14.90			14.64			.14			(1.27	)
Tier I risk-based capital ratio (3)		12.21			15.01			14.74			14.78			16.68			(2.80	)		(4.47	)
Total risk-based capital ratio (3)		12.81			15.79			15.49			15.52			17.56			(2.98	)		(4.75	)
Efficiency ratio (4)		58.45			56.18			64.71			67.01			59.46			2.27			(1.01	)
Average loans to average deposits		84.17			85.11			83.15			81.72			83.95			(.94	)		.22
Noninterest-bearing deposits to total   deposits		27.82			29.24			27.71			28.69			30.09			(1.42	)		(2.27	)

(1)   Denotes a non-GAAP financial measure. See Reconciliation of Non-GAAP Measures (Table 8) 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
3Q17 Financial Supplement: Table 2
Condensed Consolidated Balance Sheets
Quarterly (Unaudited)
																						3Q17 change vs
(Dollars in thousands)		3Q17				2Q17				1Q17				4Q16				3Q16				2Q17				3Q16
Assets
Cash and amounts due from depository institutions		$	14,235			$	11,284			$	12,101			$	13,219			$	10,648			$	2,951			$	3,587
Interest-bearing deposits in other financial institutions		251,115				126,390				62,222				132,851				103,122				124,725				147,993
Federal funds sold		16,889				—				—				3,523				—				16,889				16,889
Cash and cash equivalents		282,239				137,674				74,323				149,593				113,770				144,565				168,469
Investment securities available-for-sale		920,763				847,795				896,297				847,178				822,655				72,968				98,108
Investment securities held-to-maturity		57,867				63,104				67,053				67,063				67,071				(5,237		)		(9,204		)
Loans		3,572,790				2,881,000				2,854,780				2,814,572				2,346,346				691,790				1,226,444
Allowance for loan and lease losses		(26,842		)		(27,988		)		(26,976		)		(26,598		)		(27,177		)		1,146				335
Loans, net		3,545,948				2,853,012				2,827,804				2,787,974				2,319,169				692,936				1,226,779
Loans held-for-sale		47,743				48,895				51,380				52,169				63,852				(1,152		)		(16,109		)
Other real estate owned		1,271				2,407				3,759				10,897				10,609				(1,136		)		(9,338		)
Premises and equipment, net		52,120				51,170				51,535				52,056				42,009				950				10,111
Goodwill		84,564				77,476				77,084				77,084				36,357				7,088				48,207
Other intangibles, net		11,755				11,599				12,054				12,749				8,515				156				3,240
SBA servicing rights		3,950				3,828				3,547				3,477				3,275				122				675
Bank-owned life insurance		66,846				66,320				65,855				65,371				60,282				526				6,564
Other assets		73,417				70,697				71,990				99,654				69,211				2,720				4,206
Total assets		$	5,148,483			$	4,233,977			$	4,202,681			$	4,225,265			$	3,616,775			$	914,506			$	1,531,708
Liabilities and Shareholders’   Equity
Noninterest-bearing deposits		$	1,179,698			$	1,009,509			$	944,838			$	984,419			$	890,588			$	170,189			$	289,110
Interest-bearing deposits		3,061,387				2,443,183				2,464,937				2,446,746				2,068,704				618,204				992,683
Total deposits		4,241,085				3,452,692				3,409,775				3,431,165				2,959,292				788,393				1,281,793
Federal funds purchased and   securities sold under   agreements to repurchase		25,499				25,256				25,056				27,673				20,124				243				5,375
FHLB borrowings		—				80,000				100,000				47,014				20,000				(80,000		)		(20,000		)
Notes payable		398				398				398				398				398				—				—
Other liabilities		238,911				43,294				47,169				105,382				55,827				195,617				183,084
Total liabilities		4,505,893				3,601,640				3,582,398				3,611,632				3,055,641				904,253				1,450,252
Total shareholders’ equity		642,590				632,337				620,283				613,633				561,134				10,253				81,456
Total liabilities and    shareholders’ equity		$	5,148,483			$	4,233,977			$	4,202,681			$	4,225,265			$	3,616,775			$	914,506			$	1,531,708
Capital Ratios (1)
Average equity to average assets		15.28		%		14.93		%		14.75		%		15.39		%		15.63		%		.35		%		(.35		)%
Leverage ratio		13.37				13.23				13.04				14.90				14.64				.14				(1.27		)
CET1 risk-based capital ratio		12.21				15.01				14.74				14.78				16.68				(2.80		)		(4.47		)
Tier I risk-based capital ratio		12.21				15.01				14.74				14.78				16.68				(2.80		)		(4.47		)
Total risk-based capital ratio		12.81				15.79				15.49				15.52				17.56				(2.98		)		(4.75		)

(1)  Current period capital ratios are estimated as of the date of this earning release.

State Bank Financial Corporation
3Q17 Financial Supplement: Table 3
Condensed Consolidated Income Statements
Quarterly (Unaudited)
																						3Q17 change vs
(Dollars in thousands, except per share  amounts)		3Q17				2Q17				1Q17				4Q16				3Q16				2Q17				3Q16
Net Interest Income:
Interest income on loans		$	35,400			$	34,872			$	34,060			$	26,696			$	26,580			$	528			$	8,820
Accretion income on loans		6,520				9,228				7,677				10,271				9,335				(2,708		)		(2,815		)
Interest income on invested funds		5,782				5,747				5,460				4,810				4,714				35				1,068
Interest expense		3,370				3,369				3,239				2,631				2,504				1				866
Net interest income		44,332				46,478				43,958				39,146				38,125				(2,146		)		6,207
Provision for loan and lease losses(organic & PNCI loans)		1,300				1,470				1,361				300				7				(170		)		1,293
Provision for loan and lease losses   (purchased credit impaired loans)		(885		)		375				(359		)		(23		)		81				(1,260		)		(966		)
Provision for loan and lease losses		415				1,845				1,002				277				88				(1,430		)		327
Net interest income after provision   for loan and lease losses		43,917				44,633				42,956				38,869				38,037				(716		)		5,880
Noninterest Income:
Service charges on deposits		1,575				1,471				1,467				1,319				1,383				104				192
Mortgage banking income		2,793				3,096				2,894				2,511				3,216				(303		)		(423		)
Payroll and insurance income		1,487				1,418				1,495				1,528				1,297				69				190
SBA income		1,464				1,983				1,178				1,718				1,553				(519		)		(89		)
ATM income		826				864				832				735				759				(38		)		67
Bank-owned life insurance income		526				465				484				467				533				61				(7		)
Gain on sale of investment securities		3				13				12				42				38				(10		)		(35		)
Other		1,008				1,166				1,097				1,591				990				(158		)		18
Total noninterest income		9,682				10,476				9,459				9,911				9,769				(794		)		(87		)
Noninterest Expense:
Salaries and employee benefits		21,457				21,912				22,057				19,554				19,799				(455		)		1,658
Occupancy and equipment		3,187				3,329				3,280				3,069				2,984				(142		)		203
Data processing		2,587				2,382				2,639				2,131				2,097				205				490
Legal and professional fees		700				898				1,805				1,702				1,064				(198		)		(364		)
Merger-related expenses		135				372				2,235				3,507				135				(237		)		—
Marketing		342				403				664				430				665				(61		)		(323		)
Federal deposit insurance premiums   and other regulatory fees		407				398				397				188				441				9				(34		)
Loan collection costs and OREO   activity		181				(213		)		(1,042		)		(127		)		(841		)		394				1,022
Amortization of intangibles		701				697				696				516				513				4				188
Other		1,874				1,819				1,834				1,905				1,623				55				251
Total noninterest expense		31,571				31,997				34,565				32,875				28,480				(426		)		3,091
Income Before Income Taxes		22,028				23,112				17,850				15,905				19,326				(1,084		)		2,702
Income tax expense		7,592				7,909				6,292				5,578				6,885				(317		)		707
Net Income		$	14,436			$	15,203			$	11,558			$	10,327			$	12,441			$	(767	)		$	1,995
Net income allocated to participatingsecurities		$	389			$	413			$	295			$	282			$	348			$	(24	)		$	41
Net income allocated to commonshareholders		14,047				14,790				11,263				10,045				12,093				(743		)		1,954
Earnings Per Share
Basic		$	.37			$	.39			$	.30			$	.28			$	.34			$	(.02	)		$	.03
Diluted		.37				.39				.30				.28				.34				(.02		)		.03
Weighted Average Shares Outstanding
Basic		37,918,753				37,896,125				37,867,718				35,904,009				35,863,183				22,628				2,055,570
Diluted		37,963,141				37,942,483				37,954,585				36,009,098				35,965,948				20,658				1,997,193

State Bank Financial Corporation
3Q17 Financial Supplement: Table 4
Condensed Consolidated Income Statements
Year to Date (Unaudited)
		Nine Months Ended September 30								Change
(Dollars in thousands, except per share amounts)		2017				2016
Net Interest Income:
Interest income on loans		$	104,332			$	76,328			$	28,004
Accretion income on loans		23,425				33,039				(9,614		)
Interest income on invested funds		16,989				14,113				2,876
Interest expense		9,978				6,988				2,990
Net interest income		134,768				116,492				18,276
Provision for loan and lease losses (organic & PNCI loans)		4,131				3,296				835
Provision for loan and lease losses (purchased credit impaired loans)		(869		)		(3,336		)		2,467
Provision for loan and lease losses		3,262				(40		)		3,302
Net interest income after provision for loan and lease losses		131,506				116,532				14,974
Noninterest Income:
Service charges on deposits		4,513				4,121				392
Mortgage banking income		8,783				9,808				(1,025		)
Payroll and insurance income		4,400				4,097				303
SBA income		4,625				4,740				(115		)
ATM income		2,522				2,273				249
Bank-owned life insurance income		1,475				1,463				12
Gain on sale of investment securities		28				447				(419		)
Other		3,271				2,441				830
Total noninterest income		29,617				29,390				227
Noninterest Expense:
Salaries and employee benefits		65,426				59,221				6,205
Occupancy and equipment		9,796				9,100				696
Data processing		7,608				6,383				1,225
Legal and professional fees		3,403				2,993				410
Merger-related expenses		2,742				454				2,288
Marketing		1,409				1,786				(377		)
Federal deposit insurance premiums and other regulatory fees		1,202				1,556				(354		)
Loan collection costs and OREO activity		(1,074		)		(452		)		(622		)
Amortization of intangibles		2,094				1,586				508
Other		5,527				5,425				102
Total noninterest expense		98,133				88,052				10,081
Income Before Income Taxes		62,990				57,870				5,120
Income tax expense		21,793				20,606				1,187
Net Income		$	41,197			$	37,264			$	3,933
Net income allocated to participating securities		$	1,095			$	1,021			$	74
Net income allocated to common shareholders		40,102				36,243				3,859
Earnings Per Share
Basic		$	1.06			$	1.01			$	.05
Diluted		1.06				1.01				.05
Weighted Average Shares Outstanding
Basic		37,894,385				35,940,402				1,953,983
Diluted		37,943,971				36,040,655				1,903,316

State Bank Financial Corporation
3Q17 Financial Supplement: Table 5
Condensed Consolidated Composition of Loans and Deposits at Period Ends
Quarterly (Unaudited)
																						3Q17 change vs
(Dollars in thousands)		3Q17				2Q17				1Q17				4Q16				3Q16				2Q17				3Q16
Composition of Loans
Organic loans (1):
Construction, land & land development		$	460,368			$	413,557			$	418,186			$	500,018			$	486,299			$	46,811			$	(25,931	)
Other commercial real estate		915,727				960,762				885,570				754,790				744,270				(45,035		)		171,457
Total commercial real estate		1,376,095				1,374,319				1,303,756				1,254,808				1,230,569				1,776				145,526
Residential real estate		175,258				167,755				161,460				144,295				139,926				7,503				35,332
Owner-occupied real estate		261,784				244,637				251,703				256,317				239,726				17,147				22,058
Commercial, financial & agricultural		363,551				355,629				336,257				327,381				306,141				7,922				57,410
Leases		66,765				73,103				62,603				71,724				74,722				(6,338		)		(7,957		)
Consumer		61,200				60,028				56,776				36,039				39,373				1,172				21,827
Total organic loans		2,304,653				2,275,471				2,172,555				2,090,564				2,030,457				29,182				274,196
Purchased non-credit impaired loans (2):
Construction, land & land development		30,670				31,083				43,787				51,208				10,035				(413		)		20,635
Other commercial real estate		234,486				171,914				188,737				209,531				58,261				62,572				176,225
Total commercial real estate		265,156				202,997				232,524				260,739				68,296				62,159				196,860
Residential real estate		112,244				117,449				137,699				144,596				56,468				(5,205		)		55,776
Owner-occupied real estate		125,438				114,438				119,871				115,566				52,016				11,000				73,422
Commercial, financial & agricultural		558,992				31,654				33,690				36,206				10,447				527,338				548,545
Consumer		2,647				3,393				4,281				6,255				1,826				(746		)		821
Total purchased non-credit impaired   loans		1,064,477				469,931				528,065				563,362				189,053				594,546				875,424
Purchased credit impaired loans (3):
Construction, land & land development		16,918				16,857				17,211				16,537				11,564				61				5,354
Other commercial real estate		102,934				46,078				60,664				60,742				38,238				56,856				64,696
Total commercial real estate		119,852				62,935				77,875				77,279				49,802				56,917				70,050
Residential real estate		42,190				45,513				49,728				54,507				53,953				(3,323		)		(11,763		)
Owner-occupied real estate		26,210				23,262				22,099				23,980				22,389				2,948				3,821
Commercial, financial & agricultural		15,139				3,617				4,153				4,533				608				11,522				14,531
Consumer		269				271				305				347				84				(2		)		185
Total purchased credit impaired    loans		203,660				135,598				154,160				160,646				126,836				68,062				76,824
Total loans		$	3,572,790			$	2,881,000			$	2,854,780			$	2,814,572			$	2,346,346			$	691,790			$	1,226,444
Composition of Deposits
Noninterest-bearing demand deposits		$	1,179,698			$	1,009,509			$	944,838			$	984,419			$	890,588			$	170,189			$	289,110
Interest-bearing transaction accounts		619,156				591,038				599,858				664,350				547,078				28,118				72,078
Savings and money market deposits		1,680,922				1,373,686				1,393,711				1,292,867				1,101,458				307,236				579,464
Time deposits		731,416				419,020				454,889				466,849				390,429				312,396				340,987
Brokered and wholesale time deposits		29,893				59,439				16,479				22,680				29,739				(29,546		)		154
Total deposits		$	4,241,085			$	3,452,692			$	3,409,775			$	3,431,165			$	2,959,292			$	788,393			$	1,281,793

(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.(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
3Q17 Financial Supplement: Table 6
Condensed Consolidated Asset Quality Data
Quarterly (Unaudited)
																						3Q17 change vs
(Dollars in thousands)		3Q17				2Q17				1Q17				4Q16				3Q16				2Q17				3Q16
Allowance for loan and lease losses on   organic loans
Beginning Balance		$	22,560			$	21,885			$	21,086			$	21,736			$	22,008			$	675			$	552
Charge-offs		(912		)		(536		)		(540		)		(553		)		(311		)		(376		)		(601		)
Recoveries		106				113				77				34				39				(7		)		67
Net (charge-offs) recoveries		(806		)		(423		)		(463		)		(519		)		(272		)		(383		)		(534		)
Provision for loan and lease losses		955				1,098				1,262				(131		)		—				(143		)		955
Ending Balance		$	22,709			$	22,560			$	21,885			$	21,086			$	21,736			$	149			$	973
Allowance for loan and lease losses on   purchased non-credit impaired loans
Beginning Balance		$	667			$	491			$	439			$	150			$	158			$	176			$	509
Charge-offs		(152		)		(197		)		(48		)		(143		)		(16		)		45				(136		)
Recoveries		40				1				1				1				1				39				39
Net (charge-offs) recoveries		(112		)		(196		)		(47		)		(142		)		(15		)		84				(97		)
Provision for loan and lease losses		345				372				99				431				7				(27		)		338
Ending Balance		$	900			$	667			$	491			$	439			$	150			$	233			$	750
Allowance for loan and lease losses on      purchased credit impaired loans
Beginning Balance		$	4,761			$	4,600			$	5,073			$	5,291			$	5,433			$	161			$	(672	)
Charge-offs		(643		)		(214		)		(114		)		(195		)		(223		)		(429		)		(420		)
Recoveries		—				—				—				—				—				—				—
Net (charge-offs) recoveries		(643		)		(214		)		(114		)		(195		)		(223		)		(429		)		(420		)
Provision for loan and lease losses		(885		)		375				(359		)		(23		)		81				(1,260		)		(966		)
Ending Balance		$	3,233			$	4,761			$	4,600			$	5,073			$	5,291			$	(1,528	)		$	(2,058	)
Nonperforming organic assets
Nonaccrual loans		$	5,483			$	1,422			$	6,114			$	6,234			$	6,423			$	4,061			$	(940	)
Total nonperforming organic loans		5,483				1,422				6,114				6,234				6,423				4,061				(940		)
Other real estate owned		—				23				232				282				83				(23		)		(83		)
Total nonperforming organic assets		$	5,483			$	1,445			$	6,346			$	6,516			$	6,506			$	4,038			$	(1,023	)
Nonperforming purchased non-credit   impaired assets
Nonaccrual loans		$	5,614			$	5,141			$	4,098			$	3,381			$	1,672			$	473			$	3,942
Total nonperforming PNCI loans		5,614				5,141				4,098				3,381				1,672				473				3,942
Other real estate owned		—				—				—				—				21				—				(21		)
Total nonperforming PNCI assets		$	5,614			$	5,141			$	4,098			$	3,381			$	1,693			$	473			$	3,921
Ratios for organic assets
Annualized QTD charge-offs  (recoveries) on organic loans to  average organic loans		.14		%		.08		%		.09		%		.10		%		.05		%		.06		%		.09		%
Nonperforming organic loans to organic  loans		.24				.06				.28				.30				.32				.18				(.08		)
Nonperforming organic assets to organic  loans + OREO		.24				.06				.29				.31				.32				.18				(.08		)
Past due organic loans to organic loans		.12				.09				.08				.06				.09				.03				.03
Allowance for loan and lease losses on  organic loans to organic loans		.99				.99				1.01				1.01				1.07				—				(.08		)
State Bank Financial Corporation
3Q17 Financial Supplement: Table 6 (continued)
Condensed Consolidated Asset Quality Data
Quarterly (Unaudited)
																						3Q17 change vs
(Dollars in thousands)		3Q17				2Q17				1Q17				4Q16				3Q16				2Q17				3Q16
Ratios for purchased non-credit    impaired loans
Annualized QTD charge-offs  (recoveries) on PNCI loans to average  PNCI loans		.10		%		.16		%		.03		%		.31		%		.03		%		(.06		) %		.07		%
Nonperforming PNCI loans to PNCI  loans		.53				1.09				.78				.60				.88				(.56		)		(.35		)
Nonperforming PNCI assets to PNCI  loans + OREO		.53				1.09				.78				.60				.90				(.56		)		(.37		)
Past due PNCI loans to PNCI loans		.48				1.05				.90				.68				.41				(.57		)		.07
Allowance for loan and lease losses on  PNCI loans to PNCI loans		.08				.14				.09				.08				.08				(.06		)		—
Ratios for purchased credit impaired     loans (1)
Annualized QTD charge-offs  (recoveries) on PCI loans to average  PCI loans		1.95		%		.60		%		.30		%		.63		%		.68		%		1.35		%		1.27		%
Past due PCI loans to PCI loans		8.12				10.26				10.68				8.92				11.00				(2.14		)		(2.88		)
Allowance for loan and lease losses on  PCI loans to PCI loans		1.59				3.51				2.98				3.16				4.17				(1.92		)		(2.58		)

(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
3Q17 Financial Supplement: Table 7
Condensed Consolidated Average Balances and Yield Analysis
Quarterly (Unaudited)
																						3Q17 change vs
(Dollars in thousands)		3Q17				2Q17				1Q17				4Q16				3Q16				2Q17				3Q16
Average Balances
Interest-bearing deposits in other   financial institutions and federal funds   sold		$	108,546			$	73,862			$	85,720			$	82,797			$	63,315			$	34,684			$	45,231
Investment securities		913,898				947,300				961,913				911,025				881,642				(33,402		)		32,256
Loans, excluding purchased credit   impaired (1)		2,762,479				2,762,996				2,692,517				2,307,794				2,275,859				(517		)		486,620
Purchased credit impaired loans		130,708				142,419				154,054				123,718				130,770				(11,711		)		(62		)
Total earning assets		3,915,631				3,926,577				3,894,204				3,425,334				3,351,586				(10,946		)		564,045
Total nonearning assets		263,100				274,266				287,757				211,210				213,274				(11,166		)		49,826
Total assets		4,178,731				4,200,843				4,181,961				3,636,544				3,564,860				(22,112		)		613,871
Interest-bearing transaction accounts		580,090				585,343				602,378				575,977				515,974				(5,253		)		64,116
Savings & money market deposits		1,383,326				1,380,586				1,388,876				1,118,548				1,105,635				2,740				277,691
Time deposits		420,192				437,475				456,811				385,146				401,447				(17,283		)		18,745
Brokered and wholesale time deposits		49,675				38,353				19,926				22,885				20,723				11,322				28,952
Other borrowings		57,988				119,652				81,344				52,555				94,455				(61,664		)		(36,467		)
Total interest-bearing liabilities		2,491,271				2,561,409				2,549,335				2,155,111				2,138,234				(70,138		)		353,037
Noninterest-bearing deposits		1,004,046				972,074				955,515				872,954				823,043				31,972				181,003
Other liabilities		44,794				40,066				60,102				48,918				46,218				4,728				(1,424		)
Shareholders’ equity		638,620				627,294				617,009				559,561				557,365				11,326				81,255
Total liabilities and shareholders'   equity		4,178,731				4,200,843				4,181,961				3,636,544				3,564,860				(22,112		)		613,871
Interest Margins (2)
Interest-bearing deposits in other   financial institutions and federal funds   sold		.80		%		.50		%		.44		%		.31		%		.28		%		.30		%		.52		%
Investment securities, tax-equivalent   basis		2.42				2.39				2.26				2.07				2.11				.03				.31
Loans, excluding purchased credit   impaired, tax-equivalent basis (3)		5.11				5.08				5.15				4.63				4.67				.03				.44
Purchased credit impaired loans		19.79				25.99				20.21				33.03				28.40				(6.20		)		(8.61		)
Total earning assets		4.85		%		5.11		%		4.93		%		4.87		%		4.84		%		(.26		)%		.01		%
Interest-bearing transaction accounts		.13				.12				.12				.12				.12				.01				.01
Savings & money market deposits		.63				.61				.60				.59				.54				.02				.09
Time deposits		.72				.69				.72				.72				.68				.03				.04
Brokered and wholesale time deposits		1.05				1.05				1.06				.85				.92				—				.13
Other borrowings		.76				.82				.65				.45				.40				(.06		)		.36
Total interest-bearing liabilities		.54		%		.53		%		.52		%		.49		%		.47		%		.01		%		.07		%
Net interest spread		4.31		%		4.58		%		4.41		%		4.38		%		4.37		%		(.27		)%		(.06		)%
Net interest margin		4.51		%		4.76		%		4.59		%		4.56		%		4.54		%		(.25		)%		(.03		)%
Net interest margin contribution   from accretion income on loans		.66		%		.94		%		.80		%		1.19		%		1.11		%		(.28		)%		(.45		)%

(1) Includes average nonaccrual loans of $8.0 million for 3Q17, $9.3 million for 2Q17, $9.9 million for 1Q17, $8.4 million for 4Q16, and $8.6 million for 3Q16.(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 tax-exempt loan interest income to a fully taxable basis. The taxable equivalent adjustments included above amount to $177,000 for 3Q17, $131,000 for 2Q17, $140,000 for 1Q17, $142,000 for 4Q16, and $142,000 for 3Q16.

State Bank Financial Corporation
3Q17 Financial Supplement: Table 8
Reconciliation of Non-GAAP Measures (1)
Quarterly (Unaudited)
(dollars in thousands, except per share amounts; taxable       equivalent)	3Q17				2Q17				1Q17				4Q16				3Q16
Book value per common share reconciliation
Book value per common share (GAAP)	$	16.48			$	16.23			$	15.96			$	15.80			$	15.21
Effect of goodwill and other intangibles	(2.47		)		(2.29		)		(2.30		)		(2.32		)		(1.22		)
Tangible book value per common share	$	14.01			$	13.94			$	13.66			$	13.48			$	13.99
Average tangible equity reconciliation
Average equity (GAAP)	$	638,620			$	627,294			$	617,009			$	559,561			$	557,365
Effect of average goodwill and other intangibles	(88,618		)		(89,141		)		(89,406		)		(44,579		)		(45,100		)
Average tangible equity	$	550,002			$	538,153			$	527,603			$	514,982			$	512,265

(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