• Third quarter 2016 net income of $12.4 million, or $.34 per diluted share
• Return on average assets of 1.39%
• Positive trend in loan interest income continues
• Net interest margin excluding accretion expands to 3.57%

ATLANTA, Oct. 27, 2016 (GLOBE NEWSWIRE) -- State Bank Financial Corporation (NASDAQ:STBZ) today announced unaudited financial results for the quarter ended September 30, 2016.  Net income for the third quarter of 2016 was $12.4 million, compared to $14.0 million in the second quarter of 2016 and $9.1 million in the third quarter of 2015.  Fully diluted earnings per share were $.34 in the third quarter of 2016 compared to $.38 in the second quarter of 2016 and $.25 in the third quarter of 2015.  Interest income on loans improved to $26.6 million in the third quarter, a $1.2 million increase from the second quarter of 2016 and a $2.4 million increase from the third quarter of 2015.  The increase in interest income on loans as well as lower noninterest expense helped offset a decline in accretion income in the third quarter of 2016.

Joe Evans, Chairman and CEO of State Bank Financial, commented, “This was another solid quarter.  I am very pleased with the way we continue to balance the delivery of current operating results with the build-out of markets and lines of business for the future.”

Operating Highlights

Net interest income of $38.1 million in the third quarter of 2016 decreased from $41.7 million in the second quarter of 2016 but increased from $37.4 million in the third quarter of 2015.  Accretion income on loans was $9.3 million in the third quarter of 2016, down from $14.0 million in the second quarter of 2016 and $11.2 million in the third quarter of 2015.  Accretion income in the second quarter of 2016 was positively impacted by a $4.1 million gain from one loan pool closing.  There were no loan pool closings during the third quarters of 2016 or 2015.  As of September 30, 2016, approximately $72 million of accretable discount remains to be recognized as loan accretion income.

Noninterest income was $9.8 million in the third quarter of 2016, compared to $10.2 million in the second quarter of 2016 and $8.9 million in the third quarter of 2015.  Excluding gain on sale of securities, noninterest income declined $103 thousand, or 1.0%, from the previous quarter and increased $854 thousand, or 9.6%, from the third quarter of 2015.  In the third quarter of 2016, income from mortgage banking and SBA lending totaled $3.2 million and $1.6 million, respectively.  Payroll fee income of $1.1 million increased versus the prior quarter and prior year periods.

Total noninterest expense for the third quarter of 2016 was $28.5 million, a $2.2 million decrease from the second quarter of 2016, and a $3.9 million decrease from the third quarter of 2015.  The decline was due primarily to lower salary and employee benefit costs, which were down $863 thousand from the previous quarter.  Merger-related expenses totaled $135 thousand in the third quarter of 2016 compared to $319 thousand in the second quarter of 2016.

Financial Condition

Total assets at September 30, 2016 were $3.62 billion, up from $3.59 billion at June 30, 2016.  Total loans were $2.3 billion at September 30, 2016, up $1.3 million from the second quarter of 2016.  Period-end organic and purchased non-credit impaired loans increased to $2.2 billion at September 30, 2016, a net increase of $8.9 million from the second quarter of 2016.  Purchased credit impaired loans decreased to $126.8 million at the end of the third quarter of 2016, a $7.7 million linked-quarter decline.

Tom Wiley, Vice Chairman and President, commented, “We originated over $390 million in new loans in the third quarter, but this was offset by a record level of paydowns as a number of our real estate clients profitably cashed out on their projects.  Our loan pipeline remains strong as does our expectation for continued strong longer-term growth without compromising our high credit standards.”

The organic loan portfolio continued to perform well in the third quarter of 2016 as past due organic loans represented .09% of total organic loans.  The allowance as a percent of loans declined three basis points to 1.07% at the end of the third quarter of 2016 and covers organic nonperforming assets by more than three times.

Total deposits at September 30, 2016 were $2.96 billion, up from $2.89 billion at the end of the second quarter of 2016.  Period-end transaction accounts, comprised of noninterest-bearing demand deposits and interest-bearing transaction accounts, increased $76.3 million from the second quarter of 2016.  Noninterest-bearing demand deposits represented 30.1% of total deposits as of September 30, 2016.  Average noninterest-bearing demand deposits decreased $25.3 million from the second quarter of 2016.

Tangible book value per share was $13.99 at the end of the third quarter of 2016.  State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 14.64% and a Tier I risk-based capital ratio of 16.68%.

Recent Events

On April 5, 2016, State Bank Financial announced the signing of a definitive agreement to acquire NBG Bancorp, Inc. and its wholly-owned subsidiary, The National Bank of Georgia, in a cash and stock transaction with a purchase price of approximately $68 million.  At September 30, 2016, The National Bank of Georgia had assets of approximately $415 million, loans of approximately $356 million, deposits of approximately $323 million, a branch and mortgage office in Athens, and a branch office in Gainesville, Georgia.  At a special meeting held on July 25, 2016, NBG Bancorp, Inc. received shareholder approval for the transaction.  The completion of the transaction is subject to receipt of regulatory approvals and satisfaction of other customary closing conditions.  On October 26, 2016, State Bank Financial and NBG Bancorp executed an amendment to the merger agreement extending the date that the merger may be terminated from December 31, 2016 to March 31, 2017.

On May 19, 2016, State Bank Financial announced the signing of a definitive agreement to acquire S Bankshares, Inc. and its wholly-owned subsidiary, S Bank, in a cash and stock transaction with a purchase price of approximately $11 million.  At September 30, 2016, S Bank had assets of approximately $110 million, loans of approximately $81 million, and deposits of approximately $92 million.  S Bank has banking operations in Savannah, Glennville, Reidsville, and Hinesville, Georgia.  The completion of the transaction is subject to receipt of regulatory approvals and satisfaction of other customary closing conditions, including approval of S Bankshares shareholders.  On October 26, 2016, State Bank Financial and S Bankshares executed an amendment to the merger agreement extending the date that the merger may be terminated from December 31, 2016 to February 28, 2017.

As noted in the previous paragraphs, State Bank Financial requested and was granted an extension of both merger agreements into the first quarter of 2017 as we determined additional time may be required to obtain regulatory approvals and to satisfy closing conditions necessary to complete the respective mergers.  No other changes to the merger agreements were made.  While we anticipate receiving regulatory approvals for both transactions by the end of 2016, these extensions will provide additional time for the parties to close the mergers if such regulatory approvals are not obtained until the first quarter of 2017.  However, no assurance can be given as to when or if the necessary regulatory approvals will be received.

Detailed Results

Supplemental tables displaying financial results for the third quarter of 2016, the previous four quarters and year-to-date 2016 are included with this press release.

Non-GAAP Financial Measure

This press release contains a financial measure determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”).  For more information on this non-GAAP financial measure, please refer to 3Q16 Financial Supplement: Table 8, Reconciliation of Non-GAAP Measure.

Conference Call

Chief Executive Officer Joe Evans, President Tom Wiley, Chief Financial 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:  1.800.406.7408

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), with approximately $3.6 billion in assets as of September 30, 2016, is an Atlanta-based bank holding company for State Bank and Trust Company.  State Bank operates 25 full-service banking offices in Metro Atlanta, Middle Georgia and Augusta, Georgia, and seven mortgage origination offices.

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 future accretion income on loans, statements regarding our ability to continue to balance the delivery of operating results with the build-out of markets and lines of businesses, statements regarding the strength of our loan pipeline and our expectations for continued strong longer-term loan growth that does not compromise our high credit standards, statements regarding our proposed mergers with NBG Bancorp, Inc. and S Bankshares, Inc., including our belief that we will receive regulatory approvals for both transactions by the end of 2016, and other statements regarding our strategic initiatives. Such forward-looking statements are subject to risks, uncertainties, and other factors, including a downturn in the economy, the inability to obtain the requisite regulatory approvals for the proposed transactions with NBG Bancorp and/or S Bankshares and the requisite shareholder approval for the proposed transaction with S Bankshares and meet other closing terms and conditions for each transaction, the reaction to the transactions of each bank’s customers, employees and counterparties, or difficulties related to the transition of services, volatile credit and financial markets both domestic and foreign, potential deterioration in real estate values, regulatory changes and excessive loan losses, 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.

Additional Information About the Mergers and Where to Find It

Proposed Merger with NBG Bancorp, Inc.

In connection with the proposed merger transaction with NBG Bancorp, Inc., State Bank Financial has filed a registration statement on Form S-4 (Registration Statement No. 333-211445) that includes a proxy statement of NBG Bancorp, Inc. and a prospectus of State Bank Financial.  The SEC declared the registration statement effective on June 15, 2016.  A definitive proxy statement/prospectus dated June 15, 2016 was mailed on or about June 20, 2016 to the shareholders of NBG Bancorp, Inc.  The registration statement and the proxy statement/prospectus filed with the SEC related to the proposed transaction contains important information about State Bank Financial, NBG Bancorp, Inc. and the proposed transaction and related matters. WE URGE SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT, PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS FILED WITH OR THAT MAY BE FILED WITH THE SEC IN CONNECTION WITH THE TRANSACTION OR INCORPORATED BY REFERENCE INTO THE REGISTRATION STATEMENT AND PROXY STATEMENT/PROSPECTUS BECAUSE THOSE DOCUMENTS CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION.  Security holders may obtain free copies of these documents and other documents filed with the SEC on the SEC’s website at http://www.sec.gov. Security holders may also obtain free copies of the documents filed with the SEC by State Bank Financial at its website at https://www.statebt.com (which website is not incorporated herein by reference) or by contacting Jeremy Lucas by telephone at 404.239.8626.

State Bank Financial and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of NBG Bancorp, Inc. in connection with the proposed merger. Information regarding these persons who may, under the rules of the SEC, be considered participants in the solicitation of shareholders in connection with the proposed merger are provided in the proxy statement/prospectus described above. Additional information regarding State Bank Financial’s directors and executive officers is included in State Bank Financial’s definitive proxy statement for 2016, which was filed with the SEC on April 15, 2016. You can obtain free copies of this document from State Bank Financial using the contact information above.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.

Proposed Merger with S Bankshares, Inc.

In connection with the proposed merger transaction with S Bankshares, Inc., State Bank Financial has filed a registration statement on Form S-4 (Registration Statement No. 333-213807) that includes a proxy statement of S Bankshares, Inc. and a prospectus of State Bank Financial.  The registration statement and the proxy statement/prospectus filed with the SEC related to the proposed transaction contains important information about State Bank Financial, S Bankshares, Inc. and the proposed transaction and related matters. WE URGE SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT, PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS FILED WITH OR THAT MAY BE FILED WITH THE SEC IN CONNECTION WITH THE TRANSACTION OR INCORPORATED BY REFERENCE INTO THE REGISTRATION STATEMENT AND PROXY STATEMENT/PROSPECTUS BECAUSE THOSE DOCUMENTS CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION.  Security holders may obtain free copies of these documents and other documents filed with the SEC on the SEC’s website at http://www.sec.gov. Security holders may also obtain free copies of the documents filed with the SEC by State Bank Financial at its website at https://www.statebt.com (which website is not incorporated herein by reference) or by contacting Jeremy Lucas by telephone at 404.239.8626.

State Bank Financial and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of S Bankshares, Inc. in connection with the proposed merger. Information regarding these persons who may, under the rules of the SEC, be considered participants in the solicitation of shareholders in connection with the proposed merger are provided in the proxy statement/prospectus described above.  Additional information regarding State Bank Financial’s directors and executive officers is included in State Bank Financial’s definitive proxy statement for 2016, which was filed with the SEC on April 15, 2016. You can obtain free copies of this document from State Bank Financial using the contact information above.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.

State Bank Financial Corporation
3Q16 Financial Supplement: Table 1
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
																						3Q16 change vs
(Dollars in thousands, except per share amounts)		3Q16				2Q16				1Q16				4Q15				3Q15				2Q16				3Q15
Income Statement Highlights
Interest income on loans		$	26,580			$	25,406			$	24,342			$	24,250			$	24,218			$	1,174			$	2,362
Accretion income on loans		9,335				13,961				9,743				14,240				11,156				(4,626		)		(1,821		)
Interest income on invested funds		4,714				4,726				4,673				4,139				4,050				(12		)		664
Total interest income		40,629				44,093				38,758				42,629				39,424				(3,464		)		1,205
Interest expense		2,504				2,371				2,113				1,994				1,977				133				527
Net interest income		38,125				41,722				36,645				40,635				37,447				(3,597		)		678
Provision for loan and lease losses (organic & PNCI loans)		7				1,600				1,689				1,003				608				(1,593		)		(601		)
Provision for loan and lease losses (purchased credit impaired loans)		81				(1,594		)		(1,823		)		(509		)		(873		)		1,675				954
Provision for loan and lease losses		88				6				(134		)		494				(265		)		82				353
Total noninterest income		9,769				10,230				9,391				8,136				8,894				(461		)		875
Total noninterest expense		28,480				30,674				28,898				29,562				32,416				(2,194		)		(3,936		)
Income before income taxes		19,326				21,272				17,272				18,715				14,190				(1,946		)		5,136
Income tax expense		6,885				7,287				6,434				6,594				5,071				(402		)		1,814
Net income		$	12,441			$	13,985			$	10,838			$	12,121			$	9,119			$	(1,544	)		$	3,322
Common Share Data
Basic earnings per share		$	.34			$	.38			$	.29			$	.33			$	.26			$	(.04	)		$	.08
Diluted earnings per share		.34				.38				.29				.33				.25				(.04		)		.09
Cash dividends declared per share		.14				.14				.14				.14				.07				—				.07
Book value per share		15.21				15.00				14.73				14.47				14.88				.21				.33
Tangible book value per share (1)		13.99				13.77				13.49				13.22				13.78				.22				.21
Market price per share (quarter end)		22.82				20.35				19.76				21.03				20.68				2.47				2.14
Common Shares Outstanding
Common stock		36,894,553				36,894,641				37,052,008				37,077,848				35,753,855				(88		)		1,140,698
Weighted average shares outstanding:
Basic		35,863,183				35,822,654				36,092,269				35,208,607				34,687,354				40,529				1,175,829
Diluted		35,965,948				35,923,691				36,187,662				36,140,474				36,003,068				42,257				(37,120		)
Average Balance Sheet Highlights
Loans		$	2,406,629			$	2,326,666			$	2,250,518			$	2,203,993			$	2,136,746			$	79,963			$	269,883
Assets		3,564,470				3,524,231				3,476,646				3,455,342				3,344,023				40,239				220,447
Deposits		2,866,822				2,873,019				2,854,514				2,842,788				2,766,314				(6,197		)		100,508
Equity		557,365				546,838				542,444				534,702				529,498				10,527				27,867
Tangible common equity		512,265				501,221				496,287				491,346				489,757				11,044				22,508

State Bank Financial Corporation
3Q16 Financial Supplement: Table 1 (continued)
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
																	3Q16 change vs
(Dollars in thousands, except per share amounts)		3Q16			2Q16			1Q16			4Q15			3Q15			2Q16			3Q15
Key Metrics (2)
Return on average assets		1.39	%		1.60	%		1.25	%		1.39	%		1.08	%		(.21	)%		.31	%
Return on average equity		8.88			10.29			8.04			8.99			6.83			(1.41	)		2.05
Yield on earning assets		4.84			5.37			4.79			5.23			4.98			(.53	)		(.14	)
Cost of funds		.34			.33			.29			.28			.28			.01			.06
Rate on interest-bearing liabilities		.47			.46			.42			.39			.40			.01			.07
Net interest margin		4.54			5.08			4.53			4.99			4.73			(.54	)		(.19	)
Net interest margin excluding accretion income (3)		3.57			3.53			3.48			3.40			3.52			.04			.05
Leverage ratio (4)		14.64			14.56			14.59			14.48			14.93			.08			(.29	)
Tier I risk-based capital ratio (4)		16.68			16.52			17.09			17.71			18.20			.16			(1.52	)
Total risk-based capital ratio (4)		17.56			17.42			18.13			18.75			19.28			.14			(1.72	)
Efficiency ratio (5)		59.46			59.04			62.77			60.61			69.95			.42			(10.49	)
Average loans to average deposits		83.95			80.98			78.84			77.53			77.24			2.97			6.71
Noninterest-bearing deposits to total deposits		30.09			28.75			30.68			28.87			29.45			1.34			.64

                                                            

(1)  Denotes a non-GAAP financial measure. See Reconciliation of Non-GAAP Measure (Table 8) for further information.
(2)  Income statement ratios and yield/rate information are annualized for the applicable period.
(3)  Excludes accretion income on loans and average purchased credit impaired loans.
(4)  Current period capital ratios are estimated as of the date of this earnings release.
(5)  Noninterest expenses divided by net interest income plus noninterest income.

State Bank Financial Corporation
3Q16 Financial Supplement: Table 2
Condensed Consolidated Balance Sheets
Quarterly (Unaudited)
																						3Q16 change vs
(Dollars in thousands)		3Q16				2Q16				1Q16				4Q15				3Q15				2Q16				3Q15
Assets
Cash and amounts due from depository institutions		$	10,648			$	11,964			$	14,398			$	12,175			$	15,734			$	(1,316	)		$	(5,086	)
Interest-bearing deposits in other financial institutions		103,122				70,603				102,355				163,187				153,937				32,519				(50,815		)
Cash and cash equivalents		113,770				82,567				116,753				175,362				169,671				31,203				(55,901		)
Investment securities available-for-sale		822,655				824,980				849,576				887,705				831,548				(2,325		)		(8,893		)
Investment securities held-to-maturity		67,071				63,080				60,591				—				—				3,991				67,071
Loans		2,346,346				2,345,096				2,258,533				2,160,217				2,139,691				1,250				206,655
Allowance for loan and lease losses		(27,177		)		(27,599		)		(30,345		)		(29,075		)		(28,930		)		422				1,753
Loans, net		2,319,169				2,317,497				2,228,188				2,131,142				2,110,761				1,672				208,408
Loans held-for-sale		63,852				71,302				55,219				54,933				59,563				(7,450		)		4,289
Other real estate owned		10,609				11,578				11,590				10,530				11,363				(969		)		(754		)
Premises and equipment, net		42,009				42,153				42,802				42,980				43,982				(144		)		(1,973		)
Goodwill		36,357				36,357				36,357				36,357				31,049				—				5,308
Other intangibles, net		8,515				9,029				9,556				10,101				8,486				(514		)		29
SBA servicing rights		3,275				3,165				2,882				2,626				2,463				110				812
Bank-owned life insurance		60,282				59,749				59,281				58,819				58,347				533				1,935
Other assets		68,820				65,046				60,176				59,512				61,440				3,774				7,380
Total assets		$	3,616,384			$	3,586,503			$	3,532,971			$	3,470,067			$	3,388,673			$	29,881			$	227,711
Liabilities and Shareholders’ Equity
Noninterest-bearing deposits		$	890,588			$	829,673			$	891,511			$	826,216			$	823,146			$	60,915			$	67,442
Interest-bearing deposits		2,068,704				2,055,817				2,014,087				2,035,746				1,972,042				12,887				96,662
Total deposits		2,959,292				2,885,490				2,905,598				2,861,962				2,795,188				73,802				164,104
Securities sold under agreements to repurchase		20,124				33,923				33,503				32,179				4,872				(13,799		)		15,252
FHLB borrowings		20,000				62,000				—				—				—				(42,000		)		20,000
Notes payable		398				398				1,808				1,812				2,761				—				(2,363		)
Other liabilities		55,436				51,336				46,207				37,624				53,691				4,100				1,745
Total liabilities		3,055,250				3,033,147				2,987,116				2,933,577				2,856,512				22,103				198,738
Total shareholders’ equity		561,134				553,356				545,855				536,490				532,161				7,778				28,973
Total liabilities and shareholders’ equity		$	3,616,384			$	3,586,503			$	3,532,971			$	3,470,067			$	3,388,673			$	29,881			$	227,711
Capital Ratios (1)
Average equity to average assets		15.64		%		15.52		%		15.60		%		15.47		%		15.83		%		.12		%		(.19		)%
Leverage ratio		14.64				14.56				14.59				14.48				14.93				.08				(.29		)
CET1 risk-based capital ratio		16.68				16.52				17.09				17.71				18.20				.16				(1.52		)
Tier I risk-based capital ratio		16.68				16.52				17.09				17.71				18.20				.16				(1.52		)
Total risk-based capital ratio		17.56				17.42				18.13				18.75				19.28				.14				(1.72		)

                                                              

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

State Bank Financial Corporation
3Q16 Financial Supplement: Table 3
Condensed Consolidated Income Statements
Quarterly (Unaudited)
																						3Q16 change vs
(Dollars in thousands, except per share amounts)		3Q16				2Q16				1Q16				4Q15				3Q15				2Q16				3Q15
Net Interest Income:
Interest income on loans		$	26,580			$	25,406			$	24,342			$	24,250			$	24,218			$	1,174			$	2,362
Accretion income on loans		9,335				13,961				9,743				14,240				11,156				(4,626		)		(1,821		)
Interest income on invested funds		4,714				4,726				4,673				4,139				4,050				(12		)		664
Interest expense		2,504				2,371				2,113				1,994				1,977				133				527
Net interest income		38,125				41,722				36,645				40,635				37,447				(3,597		)		678
Provision for loan and lease losses (organic & PNCI loans)		7				1,600				1,689				1,003				608				(1,593		)		(601		)
Provision for loan and lease losses (purchased credit impaired loans)		81				(1,594		)		(1,823		)		(509		)		(873		)		1,675				954
Provision for loan and lease losses		88				6				(134		)		494				(265		)		82				353
Net interest income after provision for loan and lease losses		38,037				41,716				36,779				40,141				37,712				(3,679		)		325
Noninterest Income:
Service charges on deposits		1,383				1,352				1,386				1,495				1,491				31				(108		)
Mortgage banking income		3,216				3,551				3,041				2,011				3,079				(335		)		137
Payroll fee income		1,128				1,111				1,327				1,165				1,004				17				124
SBA income		1,553				1,685				1,502				1,316				1,720				(132		)		(167		)
ATM income		759				769				745				741				742				(10		)		17
Bank-owned life insurance income		533				468				462				472				537				65				(4		)
Gain on sale of investment securities		38				396				13				16				17				(358		)		21
Other		1,159				898				915				920				304				261				855
Total noninterest income		9,769				10,230				9,391				8,136				8,894				(461		)		875
Noninterest Expense:
Salaries and employee benefits		19,799				20,662				18,760				19,914				23,293				(863		)		(3,494		)
Occupancy and equipment		2,984				3,015				3,101				2,995				3,113				(31		)		(129		)
Data processing		2,097				2,211				2,075				2,378				2,097				(114		)		—
Legal and professional fees		1,064				976				953				1,091				1,089				88				(25		)
Merger-related expenses		135				319				—				—				717				(184		)		(582		)
Marketing		665				619				502				792				491				46				174
Federal deposit insurance premiums and other regulatory fees		441				553				562				518				621				(112		)		(180		)
Loan collection costs and OREO activity		(841		)		(96		)		485				(690		)		(1,198		)		(745		)		357
Amortization of intangibles		513				528				545				509				436				(15		)		77
Other		1,623				1,887				1,915				2,055				1,757				(264		)		(134		)
Total noninterest expense		28,480				30,674				28,898				29,562				32,416				(2,194		)		(3,936		)
Income Before Income Taxes		19,326				21,272				17,272				18,715				14,190				(1,946		)		5,136
Income tax expense		6,885				7,287				6,434				6,594				5,071				(402		)		1,814
Net Income		$	12,441			$	13,985			$	10,838			$	12,121			$	9,119			$	(1,544	)		$	3,322
Net income allocated to participating securities		$	348			$	408			$	285			$	349			$	272			$	(60	)		$	76
Net income allocated to common shareholders		12,093				13,577				10,553				11,772				8,847				(1,484		)		3,246
Earnings Per Share
Basic		$	.34			$	.38			$	.29			$	.33			$	.26			$	(.04	)		$	.08
Diluted		.34				.38				.29				.33				.25				(.04		)		.09
Weighted Average Shares Outstanding
Basic		35,863,183				35,822,654				36,092,269				35,208,607				34,687,354				40,529				1,175,829
Diluted		35,965,948				35,923,691				36,187,662				36,140,474				36,003,068				42,257				(37,120		)

State Bank Financial Corporation
3Q16 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)		2016				2015
Net Interest Income:
Interest income on loans		$	76,328			$	68,688			$	7,640
Accretion income on loans		33,039				35,590				(2,551		)
Interest income on invested funds		14,113				11,684				2,429
Interest expense		6,988				5,928				1,060
Net interest income		116,492				110,034				6,458
Provision for loan and lease losses (organic & PNCI loans)		3,296				1,948				1,348
Provision for loan and lease losses (purchased credit impaired loans)		(3,336		)		1,044				(4,380		)
Provision for loan and lease losses		(40		)		2,992				(3,032		)
Net interest income after provision for loan and lease losses		116,532				107,042				9,490
Noninterest Income:
Amortization of FDIC receivable for loss share agreements		—				(16,488		)		16,488
Service charges on deposits		4,121				4,481				(360		)
Mortgage banking income		9,808				9,239				569
Payroll fee income		3,566				3,118				448
SBA income		4,740				4,223				517
ATM income		2,273				2,240				33
Bank-owned life insurance income		1,463				1,454				9
Gain on sale of investment securities		447				338				109
Other		2,972				3,370				(398		)
Total noninterest income		29,390				11,975				17,415
Noninterest Expense:
Salaries and employee benefits		59,221				63,381				(4,160		)
Occupancy and equipment		9,100				9,437				(337		)
Data processing		6,383				6,812				(429		)
Legal and professional fees		2,993				3,857				(864		)
Merger-related expenses		454				1,730				(1,276		)
Marketing		1,786				1,526				260
Federal deposit insurance premiums and other regulatory fees		1,556				1,582				(26		)
Loan collection costs and OREO activity		(452		)		(907		)		455
Amortization of intangibles		1,586				1,295				291
Other		5,425				5,147				278
Total noninterest expense		88,052				93,860				(5,808		)
Income Before Income Taxes		57,870				25,157				32,713
Income tax expense		20,606				8,855				11,751
Net Income		$	37,264			$	16,302			$	20,962
Net income allocated to participating securities		$	1,021			$	452			$	569
Net income allocated to common shareholders		36,243				15,850				20,393
Earnings Per Share
Basic		$	1.01			$	.46			$	.55
Diluted		1.01				.45				.56
Weighted Average Shares Outstanding
Basic		35,940,402				34,315,916				1,624,486
Diluted		36,040,655				35,615,974				424,681

State Bank Financial Corporation
3Q16 Financial Supplement: Table 5
Condensed Consolidated Composition of Loans and Deposits at Period Ends
Quarterly (Unaudited)
																						3Q16 change vs
(Dollars in thousands)		3Q16				2Q16				1Q16				4Q15				3Q15				2Q16				3Q15
Composition of Loans
Organic loans (1):
Construction, land & land development		$	486,299			$	470,672			$	452,654			$	482,087			$	412,788			$	15,627			$	73,511
Other commercial real estate		744,270				748,949				719,340				661,062				705,616				(4,679		)		38,654
Total commercial real estate		1,230,569				1,219,621				1,171,994				1,143,149				1,118,404				10,948				112,165
Residential real estate		139,926				139,832				140,493				140,613				127,823				94				12,103
Owner-occupied real estate		239,726				238,059				222,347				219,636				212,171				1,667				27,555
Commercial, financial & agricultural		306,141				290,245				233,169				181,513				165,305				15,896				140,836
Leases		74,722				82,977				93,490				71,539				54,814				(8,255		)		19,908
Consumer		39,373				34,124				33,847				17,882				16,432				5,249				22,941
Total organic loans		2,030,457				2,004,858				1,895,340				1,774,332				1,694,949				25,599				335,508
Purchased non-credit impaired loans (2):
Construction, land & land development		10,035				11,427				13,959				18,598				37,326				(1,392		)		(27,291		)
Other commercial real estate		58,261				64,665				70,444				74,506				79,878				(6,404		)		(21,617		)
Total commercial real estate		68,296				76,092				84,403				93,104				117,204				(7,796		)		(48,908		)
Residential real estate		56,468				60,100				65,948				69,053				75,987				(3,632		)		(19,519		)
Owner-occupied real estate		52,016				56,414				57,519				61,313				69,619				(4,398		)		(17,603		)
Commercial, financial & agricultural		10,447				11,121				13,315				14,216				19,529				(674		)		(9,082		)
Consumer		1,826				1,978				2,213				2,624				3,080				(152		)		(1,254		)
Total purchased non-credit impaired loans		189,053				205,705				223,398				240,310				285,419				(16,652		)		(96,366		)
Purchased credit impaired loans (3):
Construction, land & land development		11,564				13,310				13,245				14,252				16,473				(1,746		)		(4,909		)
Other commercial real estate		38,238				39,218				40,119				40,742				42,637				(980		)		(4,399		)
Total commercial real estate		49,802				52,528				53,364				54,994				59,110				(2,726		)		(9,308		)
Residential real estate		53,953				56,887				60,579				64,011				67,218				(2,934		)		(13,265		)
Owner-occupied real estate		22,389				24,281				24,834				25,364				30,655				(1,892		)		(8,266		)
Commercial, financial & agricultural		608				722				871				1,050				2,132				(114		)		(1,524		)
Consumer		84				115				147				156				208				(31		)		(124		)
Total purchased credit impaired loans		126,836				134,533				139,795				145,575				159,323				(7,697		)		(32,487		)
Total loans		$	2,346,346			$	2,345,096			$	2,258,533			$	2,160,217			$	2,139,691			$	1,250			$	206,655
Composition of Deposits
Noninterest-bearing demand deposits		$	890,588			$	829,673			$	891,511			$	826,216			$	823,146			$	60,915			$	67,442
Interest-bearing transaction accounts		547,078				531,676				539,322				588,391				499,434				15,402				47,644
Savings and money market deposits		1,101,458				1,097,098				1,017,930				1,074,190				1,059,770				4,360				41,688
Time deposits less than $250,000		332,873				345,999				348,304				279,449				289,815				(13,126		)		43,058
Time deposits $250,000 or greater		57,556				63,686				64,494				41,439				56,750				(6,130		)		806
Brokered and wholesale time deposits		29,739				17,358				44,037				52,277				66,273				12,381				(36,534		)
Total deposits		$	2,959,292			$	2,885,490			$	2,905,598			$	2,861,962			$	2,795,188			$	73,802			$	164,104

                                                       

(1) Loans originated by State Bank and Trust Company.
(2) Consists of loans purchased in our acquisitions of Bank of Atlanta and First Bank of Georgia.
(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
3Q16 Financial Supplement: Table 6
Condensed Consolidated Asset Quality Data
Quarterly (Unaudited)
																						3Q16 change vs
(Dollars in thousands)		3Q16				2Q16				1Q16				4Q15				3Q15				2Q16				3Q15
Allowance for loan and lease losses on organic loans
Beginning Balance		$	22,008			$	22,626			$	21,224			$	20,176			$	19,594			$	(618	)		$	2,414
Charge-offs		(311		)		(2,307		)		(240		)		(110		)		(63		)		1,996				(248		)
Recoveries		39				54				96				207				31				(15		)		8
Net (charge-offs) recoveries		(272		)		(2,253		)		(144		)		97				(32		)		1,981				(240		)
Provision for loan and lease losses		—				1,635				1,546				951				614				(1,635		)		(614		)
Ending Balance		$	21,736			$	22,008			$	22,626			$	21,224			$	20,176			$	(272	)		$	1,560
Allowance for loan and lease losses on purchased non-credit impaired loans
Beginning Balance		$	158			$	166			$	53			$	—			$	—			$	(8	)		$	158
Charge-offs		(16		)		(1		)		(63		)		—				—				(15		)		(16		)
Recoveries		1				28				33				1				6				(27		)		(5		)
Net (charge-offs) recoveries		(15		)		27				(30		)		1				6				(42		)		(21		)
Provision for loan and lease losses		7				(35		)		143				52				(6		)		42				13
Ending Balance		$	150			$	158			$	166			$	53			$	—			$	(8	)		$	150
Allowance for loan and lease losses on purchased credit impaired loans
Beginning Balance		$	5,433			$	7,553			$	7,798			$	8,754			$	9,975			$	(2,120	)		$	(4,542	)
Charge-offs		(223		)		(606		)		(1,516		)		(3,467		)		(3,282		)		383				3,059
Recoveries		—				80				3,094				3,020				2,934				(80		)		(2,934		)
Net (charge-offs) recoveries		(223		)		(526		)		1,578				(447		)		(348		)		303				125
Provision for loan and lease losses		81				(1,594		)		(1,823		)		(509		)		(873		)		1,675				954
Ending Balance		$	5,291			$	5,433			$	7,553			$	7,798			$	8,754			$	(142	)		$	(3,463	)
Nonperforming organic assets
Nonaccrual loans		$	6,423			$	6,927			$	9,416			$	5,096			$	5,117			$	(504	)		$	1,306
Total nonperforming organic loans		6,423				6,927				9,416				5,096				5,117				(504		)		1,306
Other real estate owned		83				42				33				33				500				41				(417		)
Total nonperforming organic assets		$	6,506			$	6,969			$	9,449			$	5,129			$	5,617			$	(463	)		$	889
Nonperforming purchased non-credit impaired assets
Nonaccrual loans		$	1,672			$	1,744			$	1,705			$	1,280			$	1,639			$	(72	)		$	33
Accruing TDRs		—				—				923				577				—				—				—
Total nonperforming PNCI loans		1,672				1,744				2,628				1,857				1,639				(72		)		33
Other real estate owned		21				21				22				—				—				—				21
Total nonperforming PNCI assets		$	1,693			$	1,765			$	2,650			$	1,857			$	1,639			$	(72	)		$	54
Ratios for organic assets
Annualized QTD charge-offs (recoveries) on organic loans to average organic loans		.05		%		.47		%		.03		%		(.02		)%		.01		%		(.42		)%		.04		%
Nonperforming organic loans to organic loans		.32				.35				.50				.29				.30				(.03		)		.02
Nonperforming organic assets to organic loans + OREO		.32				.35				.50				.29				.33				(.03		)		(.01		)
Past due organic loans to organic loans		.09				.18				.47				.10				.08				(.09		)		.01
Allowance for loan and lease losses on organic loans to organic loans		1.07				1.10				1.19				1.20				1.19				(.03		)		(.12		)
State Bank Financial Corporation
3Q16 Financial Supplement: Table 6 (continued)
Condensed Consolidated Asset Quality Data
Quarterly (Unaudited)
																						3Q16 change vs
(Dollars in thousands)		3Q16				2Q16				1Q16				4Q15				3Q15				2Q16				3Q15
Ratios for purchased non-credit impaired loans
Annualized QTD charge-offs (recoveries) on PNCI loans to average PNCI loans		.03		%		(.05		)%		.05		%		—		%		(.01		)%		.08		%		.04		%
Nonperforming PNCI loans to PNCI loans		.88				.85				1.18				.77				.57				.03				.31
Nonperforming PNCI assets to PNCI loans + OREO		.90				.86				1.19				.77				.57				.04				.33
Past due PNCI loans to PNCI loans		.41				.40				.30				.39				.64				.01				(.23		)
Allowance for loan and lease losses on PNCI loans to PNCI loans		.08				.08				.07				.02				—				—				.08
Ratios for purchased credit impaired loans (1)
Annualized QTD charge-offs (recoveries) on PCI loans to average PCI loans		.68		%		1.57		%		(4.50		)%		1.20		%		.83		%		(.89		)%		(.15		)%
Past due PCI loans to PCI loans		11.00				10.92				17.90				16.64				14.15				.08				(3.15		)
Allowance for loan and lease losses on PCI loans to PCI loans		4.17				4.04				5.40				5.36				5.49				.13				(1.32		)

                                                                                       

(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
3Q16 Financial Supplement: Table 7
Condensed Consolidated Average Balances and Yield Analysis
Quarterly (Unaudited)
																						3Q16 change vs
(Dollars in thousands)		3Q16				2Q16				1Q16				4Q15				3Q15				2Q16			3Q15
Average Balances
Interest-bearing deposits in other financial institutions		$	63,315			$	80,638			$	126,289			$	188,966			$	179,526			(17,323	)		(116,211	)
Investment securities		881,642				905,019				892,365				850,127				837,786				(23,377	)		43,856
Loans, excluding purchased credit  impaired (1)		2,275,859				2,191,506				2,109,449				2,055,933				1,969,651				84,353			306,208
Purchased credit impaired loans		130,770				135,160				141,069				148,060				167,095				(4,390	)		(36,325	)
Total earning assets		3,351,586				3,312,323				3,269,172				3,243,086				3,154,058				39,263			197,528
Total nonearning assets		212,884				211,908				207,474				212,256				189,965				976			22,919
Total assets		3,564,470				3,524,231				3,476,646				3,455,342				3,344,023				40,239			220,447
Interest-bearing transaction accounts		515,974				531,359				538,926				559,113				486,514				(15,385	)		29,460
Savings & money market deposits		1,105,635				1,052,106				1,036,498				1,066,783				1,042,941				53,529			62,694
Time deposits less than $250,000		340,275				351,883				314,950				283,276				295,304				(11,608	)		44,971
Time deposits $250,000 or greater		61,172				64,869				53,786				50,784				57,511				(3,697	)		3,661
Brokered and wholesale time deposits		20,723				24,471				48,039				56,298				70,004				(3,748	)		(49,281	)
Other borrowings		94,455				61,146				33,635				26,106				15,507				33,309			78,948
Total interest-bearing liabilities		2,138,234				2,085,834				2,025,834				2,042,360				1,967,781				52,400			170,453
Noninterest-bearing deposits		823,043				848,331				862,315				826,534				814,040				(25,288	)		9,003
Other liabilities		45,828				43,228				46,053				51,746				32,704				2,600			13,124
Shareholders’ equity		557,365				546,838				542,444				534,702				529,498				10,527			27,867
Total liabilities and shareholders' equity		3,564,470				3,524,231				3,476,646				3,455,342				3,344,023				40,239			220,447
Interest Margins (2)
Interest-bearing deposits in other financial institutions		.28		%		.33		%		.38		%		.28		%		.27		%		(.05	)%		.01	%
Investment securities, tax-equivalent basis (3)		2.11				2.07				2.05				1.87				1.86				.04			.25
Loans, excluding purchased credit impaired, tax-equivalent basis (4)		4.67				4.68				4.67				4.71				4.91				(.01	)		(.24	)
Purchased credit impaired loans		28.40				41.54				27.78				38.16				26.49				(13.14	)		1.91
Total earning assets		4.84		%		5.37		%		4.79		%		5.23		%		4.98		%		(.53	)%		(.14	)%
Interest-bearing transaction accounts		.12				.12				.12				.13				.13				—			(.01	)
Savings & money market deposits		.54				.53				.50				.48				.47				.01			.07
Time deposits less than $250,000		.67				.64				.51				.39				.38				.03			.29
Time deposits $250,000 or greater		.77				.71				.53				.33				.36				.06			.41
Brokered and wholesale time deposits		.92				1.07				1.07				1.03				.97				(.15	)		(.05	)
Other borrowings		.40				.52				.65				.76				1.69				(.12	)		(1.29	)
Total interest-bearing liabilities		.47		%		.46		%		.42		%		.39		%		.40		%		.01	%		.07	%
Net interest spread		4.37		%		4.91		%		4.37		%		4.84		%		4.58		%		(.54	)%		(.21	)%
Net interest margin		4.54		%		5.08		%		4.53		%		4.99		%		4.73		%		(.54	)%		(.19	)%
Net interest margin excluding accretion income		3.57		%		3.53		%		3.48		%		3.40		%		3.52		%		.04	%		.05	%

                                                             

(1) Includes average nonaccrual loans of $8.6 million for 3Q16, $10.0 million for 2Q16, $8.9 million for 1Q16, $6.5 million for 4Q15, and $5.9 million for 3Q15.
(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 $0 for 3Q16, $2,000 for 2Q16, $2,000 for 1Q16, $3,000 for 4Q15, and $4,000 for 3Q15.
(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 $142,000 for 3Q16, $113,000 for 2Q16, $165,000 for 1Q16, $134,000 for 4Q15, and $179,000 for 3Q15.

State Bank Financial Corporation
3Q16 Financial Supplement: Table 8
Reconciliation of Non-GAAP Measure (1)
Quarterly (Unaudited)
	3Q16				2Q16				1Q16				4Q15				3Q15
Book value per common share reconciliation
Tangible book value per common share	$	13.99			$	13.77			$	13.49			$	13.22			$	13.78
Effect of goodwill and other intangibles	1.22				1.23				1.24				1.25				1.10
Book value per common share (GAAP)	$	15.21			$	15.00			$	14.73			$	14.47			$	14.88

(1) This press release includes tangible book value per common share, a financial measure not calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).  The tangible book value measure is a non-GAAP measure and excludes the effect of the period end balance of intangible assets. Management believes that this non-GAAP tangible measure provides additional useful information, particularly since this measure is widely used by industry analysts for companies with prior merger and acquisition activities.

Reconciliations of this non-GAAP financial measures to the most directly comparable GAAP financial measure is presented in the accompanying table. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. This non-GAAP financial measure should not be considered as a substitute for GAAP financial measures, and the Company strongly encourages 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 Contact:
Jeremy Lucas
404.239.8626
jeremy.lucas@statebt.com

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