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ATLANTA, March 13, 2013 (GLOBE NEWSWIRE) -- State Bank Financial Corporation (Nasdaq:STBZ) ("State Bank") today announced its plan to adjust its previously reported unaudited financial results for the year ended December 31, 2012.
On January 30, 2013, State Bank filed a Form 8-K announcing unaudited financial results for the fourth quarter and the year ended December 31, 2012. State Bank subsequently identified necessary adjustments to the FDIC Receivable for Loss Share Agreements from reconsideration of valuation judgments on limited populations of both loans and other real estate owned that affected the December 31, 2012 unaudited balance of that receivable.
The largest component of the adjustments to the FDIC Receivable concerned indemnification assets related to losses on other real estate owned where recoveries are also expected from guarantors as well as the FDIC. An unrelated adjustment resulted in an increase to unaudited accretion income on covered loans. State Bank expects these changes and their related tax effects to be reflected in the Form 10-K, to be filed on or before March 18, 2013.
Based on the expected adjustments outlined in Table 1 of this press release, net income for the year ended December 31, 2012 will be $22.7 million, as opposed to the $28.9 million previously reported. Fully diluted earnings per share will be reduced to $.69 for the year ended December 31, 2012, from the $.88 previously reported. Likewise, net income for the fourth quarter of 2012 will be reduced to $3.2 million from the $9.3 million previously reported. Fully diluted earnings per share for the fourth quarter will be $.10, down from $.28 previously reported.
Commenting on the change, Joe Evans, Chairman and CEO, said, "We take the integrity of public announcements seriously. The complexities of loss share administration and accounting are great and reliant upon a multitude of estimates developed in a compressed time frame, which adds risk to the earnings announcement process. We have improved the process and added to the resources dedicated to this task and are confident that these enhancements reduce this risk going forward. I remain extremely positive about both the overall profitability of our covered asset portfolio and the quality of the banking franchise we are building."