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Consistently positive fundamental trends impacted by loss share accounting, resulting in net income slightly above breakeven
Noninterest-bearing deposits grew by $20 million and now make up more than 20% of total deposits
Organic loans grew a net $72 million and now comprise more than 77% of total gross loans
Accretable discount on loans covered by loss share agreements with the FDIC increased by $52 million
ATLANTA, July 25, 2013 (GLOBE NEWSWIRE) -- State Bank Financial Corporation (Nasdaq:STBZ) today announced unaudited financial results for the quarter ended June 30, 2013. Net income for the second quarter was $137 thousand, compared to a net loss of $1.2 million for the first quarter of 2013 and net income of $11.0 million for the second quarter of 2012. Fully diluted earnings per share, while positive, rounded to $.00 for the second quarter compared to a fully diluted loss per share of $.04 in the first quarter of 2013 and fully diluted earnings per share of $.34 in the second quarter of 2012.
Commenting on the results, Joe Evans, Chairman and CEO, said, "I am very pleased with the results of the second quarter. In the core bank, we continued to generate solid loan growth with exceptional credit metrics and strong trends in demand deposits, treasury services and payroll processing. Positive trends continued in the covered loan portfolio resulting in a significant increase in our accretable discount accompanied by a smaller increase in scheduled amortization of our FDIC receivable for loss share agreements. While timing differences between the two obscure earnings in the near-term, we expect our covered loan portfolio performance to continue to meaningfully benefit our longer-term earnings."
Net interest income was $41.6 million in the second quarter of 2013, up from $35.5 million in the first quarter of 2013 and down from $46.4 million in the second quarter of 2012. Accretion income on covered loans increased $5.2 million from the first quarter primarily due to improved cash flow re-estimations. Interest income on noncovered loans for the second quarter was $15.1 million, up from $14.4 million in the prior quarter and $13.8 million in the second quarter of 2012. Yield on noncovered loans of 5.60% was down 19 basis points in the second quarter due to the competitive pricing environment. Interest expense of $2.0 million in the second quarter was stable versus the prior quarter and down from $2.6 million in the second quarter of 2012. Cost of funds for the second quarter was 37 basis points, a one basis point improvement from the first quarter of 2013 and a 10 basis point improvement from the year ago period. Cost of funds has now decreased for 12 consecutive quarters.