STBZ State Bank Financial Corp.. (delisted)

State Bank Financial Corporation (NASDAQ:STBZ) today announced unaudited financial results for the second quarter of 2018.  Net income for the second quarter of 2018 was $18.8 million, compared to $17.4 million in the first quarter of 2018, and $15.2 million in the second quarter of 2017. Fully diluted earnings per share were $.48 in the second quarter of 2018, compared to $.44 in the first quarter of 2018 and $.39 in the second quarter of 2017.

Joe Evans, Chairman of State Bank Financial, commented, “Our team is doing a great job of taking care of business while also working diligently to make our announced merger with Cadence Bancorporation a success. I am excited about the $16 billion regional bank we are building that will be a formidable competitor in our markets.”

Operating Highlights

Interest income on loans improved to $50.4 million in the second quarter of 2018, a $2.0 million increase from the first quarter of 2018 and a $15.5 million increase from the second quarter of 2017.  Net interest income of $56.1 million in the second quarter of 2018 increased from $54.9 million in the first quarter of 2018 and $46.5 million in the second quarter of 2017.  Accretion income on loans was $6.6 million in the second quarter of 2018, up from $5.9 million in the first quarter of 2018, but down from $9.2 million in the second quarter of 2017.

Noninterest income was $10.9 million in the second quarter of 2018, compared to $10.5 million in the first quarter of 2018 and $10.5 million in the second quarter of 2017.  Revenues from mortgage banking and SBA increased $200,000 and $60,000, respectively, in the second quarter of 2018, compared to the first quarter of 2018. Gain on sale of securities totaled $250,000 in the second quarter of 2018.

Total noninterest expense for the second quarter of 2018 was $40.0 million, compared to $39.3 million in the first quarter of 2018 and $32.0 million in the second quarter of 2017.  The increase was primarily due to $2.6 million in merger-related expenses, a $1.3 million increase compared to the first quarter of 2018. Merger expenses increased as a result of the pending merger with Cadence Bancorporation that was announced during the second quarter of 2018. Salaries and employee benefit expenses decreased $1.8 million compared to the first quarter of 2018.

Financial Condition

Total assets at June 30, 2018, were $5.0 billion, up from $4.9 billion at March 31, 2018.  Total loans were $3.6 billion at June 30, 2018, down $13.2 million from the first quarter of 2018.  Period-end organic loans increased to $2.7 billion at June 30, 2018, an increase of $148.4 million from the first quarter of 2018.  Purchased non-credit impaired loans decreased to $793.1 million at June 30, 2018, a $152.6 million linked-quarter decline.  Purchased credit impaired loans decreased to $148.5 million at June 30, 2018, a $9.1 million linked-quarter decline.

Past due organic and purchased non-credit impaired loans were .16% and .36% of their respective portfolios at June 30, 2018. The provision for loan losses on organic and purchased non-credit impaired loans was $2.6 million in the second quarter of 2018 and was primarily attributable to organic loan growth in the quarter. The organic allowance as a percent of organic loans was .99% at the end of the second quarter of 2018.

Total deposits at June 30, 2018, were $4.3 billion, up $118.3 million from March 31, 2018. Noninterest-bearing demand deposits represented 27.6% of total deposits as of June 30, 2018. Period-end and average noninterest-bearing demand deposits were $1.2 billion and $1.1 billion, respectively, a $97.4 million and $66.4 million increase from the first quarter of 2018.

Tom Wiley, Vice Chairman and CEO, commented, “We experienced solid growth in total deposits in the second quarter, which increased 3% from the first quarter, including 9% growth in noninterest-bearing deposits. We continue to focus on growing low-cost core deposits and delivering an exceptional experience for our clients.”

Tangible book value per share was $14.38 at the end of the second quarter of 2018.  State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 11.75% and a Tier I risk-based capital ratio of 12.79%.

Detailed Results

Supplemental tables displaying financial results for the second quarter of 2018, the previous four quarters, and the first half of 2018 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 2Q18 Financial Supplement: Table 8, Reconciliation of Non-GAAP Measures.

About State Bank Financial Corporation

State Bank Financial Corporation (NASDAQ:STBZ), with approximately $5.0 billion in assets as of June 30, 2018, 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,” “focus,” “strategy,” “future,” “likely,” “project,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements regarding our pending merger with Cadence Bancorporation (“Cadence”). 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 occurrence of any event, change or other circumstances that could give rise to the right of Cadence or us to terminate the definitive merger agreement; the outcome of any legal proceedings that may be instituted against Cadence or us; the failure to obtain necessary regulatory approvals for our merger with Cadence (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction), and approval of our shareholders or to satisfy any of the other conditions to the merger on a timely basis or at all; the possibility that the anticipated benefits of the merger are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where Cadence and State Bank do business; the possibility that the merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; diversion of management’s attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the merger; Cadence’s ability to complete the acquisition and integration of State Bank successfully; and other factors that may affect ours or Cadence’s future results, 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.

Important Additional Information

In connection with the proposed transaction between Cadence and State Bank Financial Corporation, Cadence has filed with the SEC a Registration Statement on Form S-4 (Registration Statement No. 333-225587 (the “Registration Statement”) including a joint information statement of Cadence and proxy statement of State Bank Financial Corporation and a prospectus of Cadence, as well as other relevant documents concerning the proposed transaction. The proposed transaction will be submitted to State Bank Financial Corporation’s shareholders for their consideration. Cadence Bancorp, LLC, the controlling stockholder of Cadence, has delivered a written consent approving the proposed transaction. This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Stockholders of Cadence and shareholders of State Bank Financial Corporation are urged to read the Registration Statement, information statement, proxy statement and prospectus regarding the transaction and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they contain important information about the transaction.

Shareholders are able to obtain a free copy of the Registration Statement, information statement, proxy statement and prospectus, as well as other filings containing information State Bank Financial Corporation and Cadence, without charge, at the SEC’s website (http://www.sec.gov). Copies of the Registration Statement, information statement, proxy statement and prospectus and the filings with the SEC that are incorporated by reference therein can also be obtained, without charge, by directing a request to State Bank Financial Corporation, 3399 Peachtree Road NE, Suite 1900, Atlanta, Georgia 30326, Attention: Corporate Secretary or Cadence Bancorporation, 2800 Post Oak Boulevard, Suite 3800, Houston, Texas 77056, Attention: Corporate Secretary.

Participants in the Solicitation

State Bank Financial Corporation, Cadence and certain of their respective directors, executive officers and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding State Bank Financial Corporation’s directors and executive officers is available in its definitive proxy statement, which was filed with the SEC on April 12, 2018, and certain of its Current Reports on Form 8-K. Information regarding Cadence’s directors and executive officers is available in its definitive proxy statement, which was filed with the SEC on March 30, 2018, and certain of its Current Reports on Form 8-K. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the Registration Statement, information statement, proxy statement and prospectus and other relevant materials filed with the SEC. Free copies of these documents may be obtained as described in the preceding paragraph.

State Bank Financial Corporation2Q18 Financial Supplement: Table 1Condensed Consolidated Financial Summary ResultsQuarterly (Unaudited)
																																2Q18 change vs
(Dollars in thousands, except per share amounts)		2Q18						1Q18						4Q17						3Q17						2Q17						1Q18						2Q17
Income Statement Highlights
Interest income on loans		$			50,416			$			48,444			$			46,926			$			35,400			$			34,872			$			1,972			$			15,544
Accretion income on loans		6,595						5,946						10,671						6,520						9,228						649						(2,633				)
Interest income on invested funds		6,677						6,171						6,034						5,782						5,747						506						930
Total interest income		63,688						60,561						63,631						47,702						49,847						3,127						13,841
Interest expense		7,558						5,705						5,614						3,370						3,369						1,853						4,189
Net interest income		56,130						54,856						58,017						44,332						46,478						1,274						9,652
Provision for loan and lease losses (organic & PNCI loans)		2,556						2,650						2,050						1,300						1,470						(94				)		1,086
Provision for loan and lease losses (purchased credit impaired loans)		(163				)		558						798						(885				)		375						(721				)		(538				)
Provision for loan and lease losses		2,393						3,208						2,848						415						1,845						(815				)		548
Total noninterest income		10,917						10,461						10,140						9,682						10,476						456						441
Total noninterest expense		39,983						39,268						40,684						31,571						31,997						715						7,986
Income before income taxes		24,671						22,841						24,625						22,028						23,112						1,830						1,559
Income tax expense		5,904						5,476						19,248						7,592						7,909						428						(2,005				)
Net income		$			18,767			$			17,365			$			5,377			$			14,436			$			15,203			$			1,402			$			3,564
Common Share Data
Basic earnings per share		$			.48			$			.45			$			.14			$			.37			$			.39			$			.03			$			.09
Diluted earnings per share		.48						.44						.14						.37						.39						.04						.09
Cash dividends declared per share		.20						.20						.14						.14						.14						—						.06
Book value per share		16.79						16.58						16.45						16.48						16.23						.21						.56
Tangible book value per share (1)		14.38						14.15						14.00						14.01						13.94						.23						.44
Market price per share (quarter end)		33.40						30.01						29.84						28.65						27.12						3.39						6.28
Common Shares Outstanding
Common stock		39,121,749						39,003,412						38,992,163						38,991,022						38,967,972						118,337						153,777
Weighted average shares outstanding:
Basic		38,038,181						38,032,007						38,009,181						37,918,753						37,896,125						6,174						142,056
Diluted		38,075,106						38,070,554						38,068,619						37,963,141						37,942,483						4,552						132,623
Average Balance Sheet Highlights
Loans		$			3,662,142			$			3,598,543			$			3,603,482			$			2,893,187			$			2,905,415			$			63,599			$			756,727
Assets		4,950,453						4,860,730						4,982,451						4,178,731						4,200,843						89,723						749,610
Deposits		4,200,187						4,084,844						4,248,553						3,437,329						3,413,831						115,343						786,356
Equity		650,919						642,787						645,409						638,620						627,294						8,132						23,625
Tangible equity (1)		556,403						547,620						549,564						550,002						538,153						8,783						18,250

State Bank Financial Corporation
2Q18 Financial Supplement: Table 1 (continued)
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
																																											2Q18 change vs
(Dollars in thousands, except per share  amounts)																							2Q18				1Q18				4Q17				3Q17				2Q17				1Q18							2Q17
Key Metrics (2)
Return on average assets																							1.52		%		1.45		%		.43		%		1.37		%		1.45		%		.07					%		.07		%
Return on average equity																							11.56				10.96				3.31				8.97				9.72				.60							1.84
Yield on earning assets																							5.47				5.36				5.39				4.85				5.11				.11							.36
Cost of funds																							.71				.55				.52				.38				.38				.16							.33
Rate on interest-bearing liabilities																							.98				.75				.71				.54				.53				.23							.45
Net interest margin																							4.82				4.86				4.91				4.51				4.76				(.04					)		.06
Leverage ratio (3)																							11.75				11.69				11.24				13.37				13.23				.06							(1.48		)
Tier I risk-based capital ratio (3)																							12.79				12.44				12.61				12.30				15.01				.35							(2.22		)
Total risk-based capital ratio (3)																							13.53				13.14				13.28				12.91				15.79				.39							(2.26		)
Efficiency ratio (4)																							59.63				60.12				59.69				58.45				56.18				(.49					)		3.45
Average loans to average deposits																							87.19				88.09				84.82				84.17				85.11				(.90					)		2.08
Noninterest-bearing deposits to total deposits																							27.59				26.04				28.07				27.82				29.24				1.55							(1.65		)

(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 Corporation2Q18 Financial Supplement: Table 2Condensed Consolidated Balance SheetsQuarterly (Unaudited)
																																2Q18 change vs
(Dollars in thousands)		2Q18						1Q18						4Q17						3Q17						2Q17						1Q18						2Q17
Assets
Cash and amounts due from depository institutions		$			12,974			$			13,113			$			17,438			$			14,235			$			11,284			$			(139	)		$			1,690
Interest-bearing deposits in other financial institutions		215,360						59,620						211,142						251,115						126,390						155,740						88,970
Federal funds sold		9,957						9,000						2,297						16,889						—						957						9,957
Cash and cash equivalents		238,291						81,733						230,877						282,239						137,674						156,558						100,617
Equity securities		1,515						1,515						1,515						1,515						1,515						—						—
Debt securities available-for-sale		835,670						863,697						872,455						919,248						846,280						(28,027				)		(10,610				)
Debt securities held-to-maturity		16,742						27,558						32,852						57,867						63,104						(10,816				)		(46,362				)
Loans		3,605,273						3,618,521						3,532,193						3,572,790						2,881,000						(13,248				)		724,273
Allowance for loan and lease losses		(33,335				)		(31,317				)		(28,750				)		(26,842				)		(27,988				)		(2,018				)		(5,347				)
Loans, net		3,571,938						3,587,204						3,503,443						3,545,948						2,853,012						(15,266				)		718,926
Loans held-for-sale		55,096						47,482						36,211						47,743						48,895						7,614						6,201
Other real estate owned		5,012						4,207						895						1,271						2,407						805						2,605
Premises and equipment, net		56,965						52,410						51,794						52,120						51,170						4,555						5,795
Goodwill		84,564						84,564						84,564						84,564						77,476						—						7,088
Other intangibles, net		9,729						10,384						11,034						11,755						11,599						(655				)		(1,870				)
SBA servicing rights		3,989						4,003						4,069						3,950						3,828						(14				)		161
Bank-owned life insurance		68,231						67,768						67,313						66,846						66,320						463						1,911
Other assets		64,587						59,772						61,560						73,417						70,697						4,815						(6,110				)
Total assets		$			5,012,329			$			4,892,297			$			4,958,582			$			5,148,483			$			4,233,977			$			120,032			$			778,352
Liabilities and Shareholders’ Equity
Noninterest-bearing deposits		$			1,187,028			$			1,089,579			$			1,191,106			$			1,179,698			$			1,009,509			$			97,449			$			177,519
Interest-bearing deposits		3,115,676						3,094,853						3,052,029						3,061,387						2,443,183						20,823						672,493
Total deposits		4,302,704						4,184,432						4,243,135						4,241,085						3,452,692						118,272						850,012
Federal funds purchased and securities sold under agreements to repurchase		13,525						9,565						25,209						25,499						25,256						3,960						(11,731				)
FHLB borrowings		—						15,000						—						—						80,000						(15,000				)		(80,000				)
Notes payable		398						398						398						398						398						—						—
Other liabilities		38,783						36,248						48,289						238,911						43,294						2,535						(4,511				)
Total liabilities		4,355,410						4,245,643						4,317,031						4,505,893						3,601,640						109,767						753,770
Total shareholders’ equity		656,919						646,654						641,551						642,590						632,337						10,265						24,582
Total liabilities and shareholders’ equity		$			5,012,329			$			4,892,297			$			4,958,582			$			5,148,483			$			4,233,977			$			120,032			$			778,352
Capital Ratios (1)
Average equity to average assets		13.15				%		13.22				%		12.95				%		15.28				%		14.93				%		(.07				)%		(1.78				)%
Leverage ratio		11.75						11.69						11.24						13.37						13.23						.06						(1.48				)
CET1 risk-based capital ratio		12.79						12.44						12.61						12.30						15.01						.35						(2.22				)
Tier I risk-based capital ratio		12.79						12.44						12.61						12.30						15.01						.35						(2.22				)
Total risk-based capital ratio		13.53						13.14						13.28						12.91						15.79						.39						(2.26				)

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

State Bank Financial Corporation2Q18 Financial Supplement: Table 3Condensed Consolidated Income StatementsQuarterly (Unaudited)
																																2Q18 change vs
(Dollars in thousands, except per share amounts)		2Q18						1Q18						4Q17						3Q17						2Q17						1Q18						2Q17
Net Interest Income:
Interest income on loans		$			50,416			$			48,444			$			46,926			$			35,400			$			34,872			$			1,972			$			15,544
Accretion income on loans		6,595						5,946						10,671						6,520						9,228						649						(2,633				)
Interest income on invested funds		6,677						6,171						6,034						5,782						5,747						506						930
Interest expense		7,558						5,705						5,614						3,370						3,369						1,853						4,189
Net interest income		56,130						54,856						58,017						44,332						46,478						1,274						9,652
Provision for loan and lease losses (organic & PNCI loans)		2,556						2,650						2,050						1,300						1,470						(94				)		1,086
Provision for loan and lease losses (purchased credit impaired loans)		(163				)		558						798						(885				)		375						(721				)		(538				)
Provision for loan and lease losses		2,393						3,208						2,848						415						1,845						(815				)		548
Net interest income after provision for loan and lease losses		53,737						51,648						55,169						43,917						44,633						2,089						9,104
Noninterest Income:
Service charges on deposits		1,462						1,625						1,678						1,575						1,471						(163				)		(9				)
Mortgage banking income		3,125						2,925						2,558						2,793						3,096						200						29
Payroll and insurance income		1,608						1,760						1,698						1,487						1,418						(152				)		190
SBA income		1,252						1,192						1,866						1,464						1,983						60						(731				)
ATM income		919						870						860						826						864						49						55
Bank-owned life insurance income		463						455						467						526						465						8						(2				)
Gain (loss) on sale of investment securities		250						—						(1,481				)		3						13						250						237
Other		1,838						1,634						2,494						1,008						1,166						204						672
Total noninterest income		10,917						10,461						10,140						9,682						10,476						456						441
Noninterest Expense:
Salaries and employee benefits		24,279						26,042						25,089						20,701						21,178						(1,763				)		3,101
Occupancy and equipment		3,421						3,496						3,576						3,187						3,329						(75				)		92
Data processing		2,696						2,896						2,596						2,587						2,382						(200				)		314
Legal and professional fees		967						739						973						700						898						228						69
Merger-related expenses		2,601						1,264						2,588						135						372						1,337						2,229
Marketing		940						425						693						342						403						515						537
Federal deposit insurance premiums and other regulatory fees		589						500						498						407						398						89						191
Loan collection costs and OREO activity		(116				)		166						358						181						(213				)		(282				)		97
Amortization of intangibles		654						651						721						701						697						3						(43				)
Other		3,952						3,089						3,592						2,630						2,553						863						1,399
Total noninterest expense		39,983						39,268						40,684						31,571						31,997						715						7,986
Income Before Income Taxes		24,671						22,841						24,625						22,028						23,112						1,830						1,559
Income tax expense		5,904						5,476						19,248						7,592						7,909						428						(2,005				)
Net Income		$			18,767			$			17,365			$			5,377			$			14,436			$			15,203			$			1,402			$			3,564
Net income allocated to participating securities		$			509			$			435			$			136			$			389			$			413			$			74			$			96
Net income allocated to common shareholders		18,258						16,930						5,241						14,047						14,790						1,328						3,468
Effective Tax Rate		23.93				%		23.97				%		78.16				%		34.47				%		34.22				%		(.04				)%		(10.29				)%
Earnings Per Share
Basic		$			.48			$			.45			$			.14			$			.37			$			.39			$			.03			$			.09
Diluted		.48						.44						.14						.37						.39						.04						.09
Weighted Average Shares Outstanding
Basic		38,038,181						38,032,007						38,009,181						37,918,753						37,896,125						6,174						142,056
Diluted		38,075,106						38,070,554						38,068,619						37,963,141						37,942,483						4,552						132,623

State Bank Financial Corporation
2Q18 Financial Supplement: Table 4
Condensed Consolidated Income Statements
Year to Date (Unaudited)
														Six Months Ended June 30
														2018										2017						Change
Net Interest Income:
Interest income on loans														$							98,860			$			68,932			$			29,928
Accretion income on loans														12,541										16,905						(4,364				)
Interest income on invested funds														12,848										11,207						1,641
Interest expense														13,263										6,608						6,655
Net interest income														110,986										90,436						20,550
Provision for loan and lease losses (organic & PNCI loans)														5,206										2,831						2,375
Provision for loan and lease losses (purchased credit impaired loans)														395										16						379
Provision for loan and lease losses														5,601										2,847						2,754
Net interest income after provision for loan and lease losses														105,385										87,589						17,796
Noninterest Income:
Service charges on deposits														3,087										2,938						149
Mortgage banking income														6,050										5,990						60
Payroll and insurance income														3,368										2,913						455
SBA income														2,444										3,161						(717				)
ATM income														1,789										1,696						93
Bank-owned life insurance income														918										949						(31				)
Gain on sale of investment securities														250										25						225
Other														3,472										2,263						1,209
Total noninterest income														21,378										19,935						1,443
Noninterest Expense:
Salaries and employee benefits														50,321										42,566						7,755
Occupancy and equipment														6,917										6,609						308
Data processing														5,592										5,021						571
Legal and professional fees														1,706										2,703						(997				)
Merger-related expenses														3,865										2,607						1,258
Marketing														1,365										1,067						298
Federal deposit insurance premiums and other regulatory fees														1,089										795						294
Loan collection costs and OREO activity														50										(1,255				)		1,305
Amortization of intangibles														1,305										1,393						(88				)
Other														7,041										5,056						1,985
Total noninterest expense														79,251										66,562						12,689
Income Before Income Taxes														47,512										40,962						6,550
Income tax expense														11,380										14,201						(2,821				)
Net Income														$							36,132			$			26,761			$			9,371
Net income allocated to participating securities														$							949			$			706			$			243
Net income allocated to common shareholders														35,183										26,055						9,128
Earnings Per Share
Basic														$							.93			$			.69			$			.24
Diluted														.92										.69						.23
Weighted Average Shares Outstanding
Basic														38,035,111										37,881,999						153,112
Diluted														38,072,919										37,934,187						138,732

State Bank Financial Corporation2Q18 Financial Supplement: Table 5Condensed Consolidated Composition of Loans and Deposits at Period EndsQuarterly (Unaudited)
																																2Q18 change vs
(Dollars in thousands)		2Q18						1Q18						4Q17						3Q17						2Q17						1Q18						2Q17
Composition of Loans
Organic loans (1):
Construction, land & land development		$			454,625			$			442,942			$			412,540			$			460,368			$			413,557			$			11,683			$			41,068
Other commercial real estate		947,704						941,581						949,594						915,727						960,762						6,123						(13,058				)
Total commercial real estate		1,402,329						1,384,523						1,362,134						1,376,095						1,374,319						17,806						28,010
Residential real estate		222,886						208,960						196,225						175,258						167,755						13,926						55,131
Owner-occupied real estate		270,053						253,059						260,273						261,784						244,637						16,994						25,416
Commercial, financial & agricultural		666,572						562,566						430,205						363,551						355,629						104,006						310,943
Leases		36,863						43,787						52,396						66,765						73,103						(6,924				)		(36,240				)
Consumer		65,019						62,423						64,610						61,200						60,028						2,596						4,991
Total organic loans		2,663,722						2,515,318						2,365,843						2,304,653						2,275,471						148,404						388,251
Purchased non-credit impaired loans(2):
Construction, land & land development		14,282						24,352						25,908						30,670						31,083						(10,070				)		(16,801				)
Other commercial real estate		194,995						226,893						218,660						234,486						171,914						(31,898				)		23,081
Total commercial real estate		209,277						251,245						244,568						265,156						202,997						(41,968				)		6,280
Residential real estate		72,817						82,416						96,529						112,244						117,449						(9,599				)		(44,632				)
Owner-occupied real estate		82,500						94,900						118,294						125,438						114,438						(12,400				)		(31,938				)
Commercial, financial & agricultural		426,992						515,327						529,184						558,992						31,654						(88,335				)		395,338
Consumer		1,503						1,791						2,161						2,647						3,393						(288				)		(1,890				)
Total purchased non-credit impaired loans		793,089						945,679						990,736						1,064,477						469,931						(152,590				)		323,158
Purchased credit impaired loans (3):
Construction, land & land development		13,227						12,802						13,545						16,918						16,857						425						(3,630				)
Other commercial real estate		73,607						77,838						86,748						102,934						46,078						(4,231				)		27,529
Total commercial real estate		86,834						90,640						100,293						119,852						62,935						(3,806				)		23,899
Residential real estate		32,087						36,747						40,332						42,190						45,513						(4,660				)		(13,426				)
Owner-occupied real estate		18,019						18,593						20,803						26,210						23,262						(574				)		(5,243				)
Commercial, financial & agricultural		11,440						11,436						14,051						15,139						3,617						4						7,823
Consumer		82						108						135						269						271						(26				)		(189				)
Total purchased credit impaired loans		148,462						157,524						175,614						203,660						135,598						(9,062				)		12,864
Total loans		$			3,605,273			$			3,618,521			$			3,532,193			$			3,572,790			$			2,881,000			$			(13,248	)		$			724,273
Composition of Deposits
Noninterest-bearing demand deposits		$			1,187,028			$			1,089,579			$			1,191,106			$			1,179,698			$			1,009,509			$			97,449			$			177,519
Interest-bearing transaction accounts		674,205						633,542						688,150						619,156						591,038						40,663						83,167
Savings and money market deposits		1,587,204						1,602,908						1,626,238						1,680,922						1,373,686						(15,704				)		213,518
Time deposits		698,361						713,869						715,133						731,416						419,020						(15,508				)		279,341
Brokered and wholesale time deposits		155,906						144,534						22,508						29,893						59,439						11,372						96,467
Total deposits		$			4,302,704			$			4,184,432			$			4,243,135			$			4,241,085			$			3,452,692			$			118,272			$			850,012

(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 Bank of Commerce.
(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 Corporation2Q18 Financial Supplement: Table 6Condensed Consolidated Asset Quality DataQuarterly (Unaudited)
																																2Q18 change vs
(Dollars in thousands)		2Q18						1Q18						4Q17						3Q17						2Q17						1Q18						2Q17
Allowance for loan and lease losses on organic loans
Beginning Balance		$			24,882			$			24,039			$			22,709			$			22,560			$			21,885			$			843			$			2,997
Charge-offs		(171				)		(664				)		(474				)		(912				)		(536				)		493						365
Recoveries		70						133						77						106						113						(63				)		(43				)
Net (charge-offs) recoveries		(101				)		(531				)		(397				)		(806				)		(423				)		430						322
Provision for loan and lease losses		1,585						1,374						1,727						955						1,098						211						487
Ending Balance		$			26,366			$			24,882			$			24,039			$			22,709			$			22,560			$			1,484			$			3,806
Allowance for loan and lease losses on purchased non-credit impaired loans
Beginning Balance		$			2,249			$			995			$			900			$			667			$			491			$			1,254			$			1,758
Charge-offs		(285				)		(40				)		(273				)		(152				)		(197				)		(245				)		(88				)
Recoveries		46						18						45						40						1						28						45
Net (charge-offs) recoveries		(239				)		(22				)		(228				)		(112				)		(196				)		(217				)		(43				)
Provision for loan and lease losses		971						1,276						323						345						372						(305				)		599
Ending Balance		$			2,981			$			2,249			$			995			$			900			$			667			$			732			$			2,314
Allowance for loan and lease losses on purchased credit impaired loans
Beginning Balance		$			4,186			$			3,716			$			3,233			$			4,761			$			4,600			$			470			$			(414	)
Charge-offs		(35				)		(88				)		(315				)		(643				)		(214				)		53						179
Recoveries		—						—						—						—						—						—						—
Net (charge-offs) recoveries		(35				)		(88				)		(315				)		(643				)		(214				)		53						179
Provision for loan and lease losses		(163				)		558						798						(885				)		375						(721				)		(538				)
Ending Balance		$			3,988			$			4,186			$			3,716			$			3,233			$			4,761			$			(198	)		$			(773	)
Nonperforming organic assets
Nonaccrual loans		$			8,119			$			9,186			$			6,656			$			5,482			$			1,422			$			(1,067	)		$			6,697
Accruing TDRs		490						556						566						—						—						(66				)		490
Total nonperforming organic loans		8,609						9,742						7,222						5,482						1,422						(1,133				)		7,187
Other real estate owned		4,135						3,231						153						—						23						904						4,112
Total nonperforming organic assets		$			12,744			$			12,973			$			7,375			$			5,482			$			1,445			$			(229	)		$			11,299
Nonperforming purchased non-credit impaired assets
Nonaccrual loans		$			22,585			$			6,356			$			5,821			$			5,615			$			5,141			$			16,229			$			17,444
Accruing TDRs		2,760						2,769						—						—						—						(9				)		2,760
Total nonperforming PNCI loans		25,345						9,125						5,821						5,615						5,141						16,220						20,204
Other real estate owned		—						—						—						—						—						—						—
Total nonperforming PNCI assets		$			25,345			$			9,125			$			5,821			$			5,615			$			5,141			$			16,220			$			20,204
Ratios for organic assets
Annualized QTD charge-offs (recoveries) on organic loans to average organic loans		.02				%		.09				%		.07				%		.14				%		.08				%		(.07				) %		(.06				) %
Nonperforming organic loans to organic loans		.32						.39						.31						.24						.06						(.07				)		.26
Nonperforming organic assets to organic loans + OREO		.48						.52						.31						.24						.06						(.04				)		.42
Past due organic loans to organic loans		.16						.22						.20						.12						.09						(.06				)		.07
Allowance for loan and lease losses on organic loans to organic loans		.99						.99						1.02						.99						.99						—						—

State Bank Financial Corporation2Q18 Financial Supplement: Table 6 (continued)Condensed Consolidated Asset Quality DataQuarterly (Unaudited)
																											2Q18 change vs
(Dollars in thousands)		2Q18					1Q18					4Q17					3Q17					2Q17					1Q18					2Q17
Ratios for purchased non-credit impaired loans
Annualized QTD charge-offs (recoveries) on PNCI loans to average PNCI loans		.11			%		.01			%		.09			%		.10			%		.16			%		.10			%		(.05			)%
Nonperforming PNCI loans to PNCI loans		3.20					.96					.59					.53					1.09					2.24					2.11
Nonperforming PNCI assets to PNCI loans + OREO		3.20					.96					.59					.53					1.09					2.24					2.11
Past due PNCI loans to PNCI loans		.36					.45					.40					.48					1.05					(.09			)		(.69			)
Allowance for loan and lease losses on PNCI loans to PNCI loans		.38					.24					.10					.08					.14					.14					.24
Ratios for purchased credit impaired loans (1)
Annualized QTD charge-offs (recoveries) on PCI loans to average PCI loans		.09			%		.21			%		.66			%		1.95			%		.60			%		(.12			)%		(.51			)%
Past due PCI loans to PCI loans		5.95					6.47					5.84					8.12					10.26					(.52			)		(4.31			)
Allowance for loan and lease losses on PCI loans to PCI loans		2.69					2.66					2.12					1.59					3.51					.03					(.82			)

(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 Corporation2Q18 Financial Supplement: Table 7Condensed Consolidated Average Balances and Yield AnalysisQuarterly (Unaudited)
																																2Q18 change vs
(Dollars in thousands)		2Q18						1Q18						4Q17						3Q17						2Q17						1Q18						2Q17
Average Balances
Interest-bearing deposits in other financial institutions and federal funds sold		$			131,506			$			93,692			$			168,223			$			108,546			$			73,862			$			37,814			$			57,644
Investment securities		880,667						893,685						924,933						913,898						947,300						(13,018				)		(66,633				)
Loans, excluding purchased credit  impaired (1)		3,507,613						3,430,599						3,413,159						2,762,479						2,762,996						77,014						744,617
Purchased credit impaired loans		154,529						167,944						190,323						130,708						142,419						(13,415				)		12,110
Total earning assets		4,674,315						4,585,920						4,696,638						3,915,631						3,926,577						88,395						747,738
Total nonearning assets		276,138						274,810						285,813						263,100						274,266						1,328						1,872
Total assets		4,950,453						4,860,730						4,982,451						4,178,731						4,200,843						89,723						749,610
Interest-bearing transaction accounts		627,800						626,298						664,938						580,090						585,343						1,502						42,457
Savings & money market deposits		1,568,638						1,594,724						1,685,292						1,383,326						1,380,586						(26,086				)		188,052
Time deposits		704,850						715,514						724,578						420,192						437,475						(10,664				)		267,375
Brokered and wholesale time deposits		149,956						65,749						25,911						49,675						38,353						84,207						111,603
Other borrowings		55,344						85,788						35,353						57,988						119,652						(30,444				)		(64,308				)
Total interest-bearing liabilities		3,106,588						3,088,073						3,136,072						2,491,271						2,561,409						18,515						545,179
Noninterest-bearing deposits		1,148,943						1,082,559						1,147,834						1,004,046						972,074						66,384						176,869
Other liabilities		44,003						47,311						53,136						44,794						40,066						(3,308				)		3,937
Shareholders’ equity		650,919						642,787						645,409						638,620						627,294						8,132						23,625
Total liabilities and shareholders' equity		4,950,453						4,860,730						4,982,451						4,178,731						4,200,843						89,723						749,610
Interest Margins (2)
Interest-bearing deposits in other financial institutions and federal funds sold		1.23				%		.80				%		.86				%		.80				%		.50				%		.43				%		.73				%
Investment securities, tax-equivalent basis		2.86						2.72						2.43						2.42						2.39						.14						.47
Loans, excluding purchased credit impaired, tax-equivalent basis (3)		5.77						5.73						5.47						5.11						5.08						.04						.69
Purchased credit impaired loans		17.12						14.36						22.24						19.79						25.99						2.76						(8.87				)
Total earning assets		5.47				%		5.36				%		5.39				%		4.85				%		5.11				%		.11				%		.36				%
Interest-bearing transaction accounts		.16						.14						.13						.13						.12						.02						.04
Savings & money market deposits		1.07						.76						.80						.63						.61						.31						.46
Time deposits		1.25						1.09						1.04						.72						.69						.16						.56
Brokered and wholesale time deposits		1.87						1.91						1.15						1.05						1.05						(.04				)		.82
Other borrowings		1.59						1.31						.52						.75						.82						.28						.77
Total interest-bearing liabilities		.98				%		.75				%		.71				%		.54				%		.53				%		.23				%		.45				%
Net interest spread		4.49				%		4.61				%		4.68				%		4.31				%		4.58				%		(.12				)%		(.09				)%
Net interest margin		4.82				%		4.86				%		4.91				%		4.51				%		4.76				%		(.04				)%		.06				%
Net interest margin contribution from accretion income on loans		.57				%		.53				%		.90				%		.66				%		.94				%		.04				%		(.37				)%

(1)		Includes average nonaccrual loans of $18.9 million for 2Q18, $12.9 million for 1Q18, $11.4 million for 4Q17, $8.0 million for 3Q17, and $9.3 million for 2Q17.
(2)		Interest income or expense annualized for the applicable period.
(3)		Reflects taxable equivalent adjustments using the federal statutory tax rate of 21% for all periods beginning on or after January 1, 2018 and 35% for all periods prior to January 1, 2018 in adjusting tax-exempt loan interest income to a fully taxable basis. The taxable equivalent adjustments included above amount to $6,000 for 2Q18, $57,000 for 1Q18, $128,000 for 4Q17, $177,000 for 3Q17, and $131,000 for 2Q17.

State Bank Financial Corporation2Q18 Financial Supplement: Table 8Reconciliation of Non-GAAP Measures (1)Quarterly (Unaudited)
(dollars in thousands, except per share amounts; taxable equivalent)																				2Q18						1Q18						4Q17						3Q17						2Q17
Book value per common share reconciliation
Book value per common share (GAAP)																				$			16.79			$			16.58			$			16.45			$			16.48			$			16.23
Effect of goodwill and other intangibles																				(2.41				)		(2.43				)		(2.45				)		(2.47				)		(2.29				)
Tangible book value per common share																				$			14.38			$			14.15			$			14.00			$			14.01			$			13.94
Average tangible equity reconciliation
Average equity (GAAP)																				$			650,919			$			642,787			$			645,409			$			638,620			$			627,294
Effect of average goodwill and other intangibles																				(94,516				)		(95,167				)		(95,845				)		(88,618				)		(89,141				)
Average tangible equity																				$			556,403			$			547,620			$			549,564			$			550,002			$			538,153

(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