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Net income improves to $4.3 million as positive fundamental trends continue
Organic loans now comprise more than 80% of total gross loans
FDIC receivable decreased 26% in the quarter
Remaining accretable discount on loans covered by loss share agreements with the FDIC stands at $230 million
Board authorizes stock repurchase program
ATLANTA, Oct. 24, 2013 (GLOBE NEWSWIRE) -- State Bank Financial Corporation (Nasdaq:STBZ) today announced unaudited financial results for the quarter ended September 30, 2013. Net income for the third quarter of 2013 was $4.3 million, compared to $137 thousand for the second quarter of 2013 and $3.4 million for the third quarter of 2012. Fully diluted earnings per share were $.13 in the third quarter compared to $.00 in the second quarter of 2013 and $.10 in the third quarter of 2012. Separately, the company's board of directors authorized the repurchase of up to one million shares (approximately 3%) of the company's outstanding common stock. The shares may be repurchased from time to time in the open market or through privately negotiated transactions, depending upon market conditions and other factors.
Commenting on the results, Joe Evans, Chairman and CEO, said, "I am pleased with the results of the third quarter as we once again experienced solid organic loan growth and crossed the 80% threshold of noncovered loans to total loans, which led to a record high level of interest income on noncovered loans. Additionally, total expenses were down in the quarter, and our deposit funding mix continued to improve. The FDIC receivable and related amortization expense on the covered loan portfolio both declined in the quarter as we expect to continue to manage with confidence toward a soft landing for loss share expiration."
Net interest income was $44.4 million in the third quarter of 2013, up from $41.6 million in the second quarter of 2013 and $34.2 million in the third quarter of 2012. Accretion income on covered loans increased $2.2 million from the second quarter of 2013 primarily due to closing out of loan pools in the third quarter of 2013. Interest income on noncovered loans for the third quarter of 2013 was $15.8 million, up from $15.1 million in the prior quarter and $14.7 million in the third quarter of 2012. Yield on noncovered loans of 5.52% was down 11 basis points in the third quarter of 2013 due to increasingly competitive pricing pressure. Interest expense of $2.0 million in the third quarter of 2013 was down slightly versus the prior quarter and down from $2.2 million in the third quarter of 2012. Cost of funds for the third quarter was 38 basis points, up only one basis point from the second quarter of 2013 but down three basis points from the year ago period.