2014

State Bank Reports Second Quarter Financial Results; Organic Loans Now Represent More Than Half of Total Loans

ATLANTA, July 30, 2012 /PRNewswire/ -- State Bank Financial Corporation (NASDAQ: STBZ) today announced unaudited financial results for the quarter ended June 30, 2012.  Net income for the second quarter was $11.0 million, up from $5.1 million in the first quarter. Fully diluted earnings per share were $.34 for the second quarter compared to $.16 in the first quarter of 2012.

Commenting on these results, Joe Evans, Chairman and CEO, said, "This quarter's results reflect both the fundamental strength of our franchise and the inherent volatility of loss share accounting. Core operating highlights on a linked quarter basis include: lower expenses, lower funding costs and strong organic loan growth, which are all the direct result of solid execution by our State Bank team members. Net income for the quarter also benefited from higher accretion income due to faster than anticipated pay offs and lower than predicted losses on covered loans."

Total assets at quarter-end were $2.67 billion, relatively flat compared to $2.68 billion at the end of the first quarter. Total net loans were $1.49 billion, up $9.0 million from the first quarter. Loans not covered by loss share agreements with the FDIC grew $78.2 million in the second quarter of 2012 to $881.1 million. Noncovered loans now comprise 56.2% of State Bank's total gross loans. A reclassification of March 31, 2012 loan balances now reflects $101.9 million of organic loan growth in the first quarter, versus the $53.6 million previously reported.

Total deposits at quarter-end were $2.17 billion, down from $2.19 billion at the end of the first quarter.  This decrease was the result of continued active management of higher cost interest-bearing deposits with outflows centered in money market balances.  Noninterest-bearing deposits grew by $30.2 million, or 9.7%, in the second quarter. Cost of funds for the quarter was 47 basis points, a five basis point improvement from the first quarter of 2012.

Tangible book value per share increased to $12.99 in the first quarter, up $.37, or 2.9%, from the first quarter. State Bank Financial Corporation continues to be well capitalized, finishing the quarter with a leverage ratio of 15.24% and a Tier I risk-based capital ratio of 31.45%.

Net interest income was $46.4 million in the second quarter of 2012, up from $35.5 million in the first quarter of 2012.  The $10.9 million linked quarter increase was primarily driven by accretion on covered loans rising $8.7 million. The higher accretion was driven by covered loans that paid off earlier and with lower losses than expected based on previous cash flow assumptions. Net interest income also benefited from income on noncovered loans being up $1.9 million and interest expense being down $286 thousand.

Provision for loan losses on noncovered loans was $2.1 million in the second quarter, up from $1.5 million in the first quarter, the result of loan growth and continued stable credit quality metrics in that portfolio. Provision for loan losses on covered loans was $2.9 million in the second quarter, up from negative $1.3 million in the first quarter.

Total noninterest income was negative $1.2 million in the second quarter compared to negative $3.8 million in the first quarter of 2012. Amortization of the indemnification asset was negative $4.0 million for the second quarter. Though down from the first quarter amount of negative $7.0 million, the amortization of the indemnification asset continued to negatively impact noninterest income. While detrimental to near-term earnings, this change reflects a more positive view of covered loan asset quality, and therefore fewer reimbursement claims planned to be made to the FDIC. The amortization of the indemnification asset is linked with increased accretion income on covered loans that are experiencing improving credit quality trends, and amortization is expected to decline over time unless asset quality trends further improve.

Noninterest expense for the second quarter was $22.4 million, down from $23.2 million in the first quarter of 2012 primarily due to lower net other real estate owned costs, which were $458 thousand in the second quarter compared to $2.1 million in the first quarter. Data processing expense was $529 thousand lower in the second quarter due to conversion costs incurred in the first quarter related to the two FDIC assisted transactions announced in the fourth quarter of 2011. These linked quarter positive expense trends were partially offset by higher legal and professional fees, up primarily from consulting costs and investments in customer relationship management technology.

Detailed Results

Supplemental tables displaying financial results for second quarter 2012 and the previous four quarters are included with this press release.

Conference Call

State Bank Vice Chairman and Chief Operating Officer Dan Speight, Vice Chairman, President and Chief Credit Officer Kim Childers, and Executive Vice President and Chief Financial Officer Tom Callicutt will discuss financial and business results for the quarter on a conference call today at 11:00 a.m. EDT. The dial in number is 1.888.612.1053.  Please dial in 10 minutes prior to the start of the call to register. You will be asked to provide your name and affiliation/company to join 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 available in the investors section on the company's website at www.statebt.com.

About State Bank Financial Corporation and State Bank and Trust Company

State Bank Financial Corporation (NASDAQ: STBZ) is the holding company for State Bank and Trust Company, one of Georgia's best-capitalized banks, with approximately $2.67 billion in assets as of June 30, 2012. State Bank has locations in Metro Atlanta and Middle Georgia. State Bank Financial Corporation is headquartered in Atlanta, Georgia and State Bank and Trust Company is headquartered in Macon, Georgia.

State Bank was named the best performing community bank in the United States for 2011 by SNL Financial LC for banks between $500 million and $5 billion in assets.

Since 2009 State Bank has been an active acquirer of the assets and deposits of failed banks in Metro Atlanta and Middle Georgia. To date, State Bank has completed 12 transactions facilitated by the Federal Deposit Insurance Corporation.

To learn more about State Bank, visit www.statebt.com.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans, expectations and benefits of our strategic plan, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as a downturn in the economy, unanticipated losses related to the integration of, and accounting for, acquired assets and assumed liabilities in our FDIC-assisted transactions, access to funding sources, greater than expected noninterest expenses, volatile credit and financial markets both domestic and foreign, potential deterioration in real estate values, regulatory changes and excessive loan losses, 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.

 

State Bank Financial Corporation













2Q12 Financial Supplement: Table 1













Condensed Consolidated Financial Summary Results













Quarterly (Unaudited)














2Q12 Change vs.

(Dollars in thousands, except per share data)


2Q12


1Q12


4Q11


3Q11


2Q11


1Q12


2Q11

INCOME STATEMENT HIGHLIGHTS















  Total interest income on invested funds


$          3,027


$          3,005


$          3,154


$          3,040


$          2,768


$          22


$          259

  Interest income on noncovered loans,

     including fees


13,722


11,834


12,486


10,096


9,174


1,888


4,548

  Accretion income on covered loans


32,191


23,490


29,408


36,938


25,139


8,701


7,052

  Total interest expense


2,566


2,852


3,595


4,603


6,457


(286)


(3,891)

Net interest income


46,374


35,477


41,453


45,471


30,624


10,897


15,750

  Provision for loan losses (noncovered loans)


2,125


1,535


2,868


1,060


1,593


590


532

  Provision for loan losses (covered loans)


2,902


(1,283)


16,768


2,815


451


4,185


2,451

  Noninterest income


(1,243)


(3,778)


18,783


6,689


7,835


2,535


(9,078)

  Noninterest expense


22,426


23,213


27,227


21,789


23,094


(787)


(668)

Income before income taxes


17,678


8,234


13,373


26,496


13,321


9,444


4,357

  Income tax expense


6,647


3,096


4,284


9,392


4,739


3,551


1,908

Net income


$        11,031


$          5,138


$          9,089


$        17,104


$          8,582


$     5,893


$       2,449

COMMON STOCK DATA















  Basic earnings per share


$             .35


$              .16


$              .29


$              .54


$              .27


$         .19


$           .08

  Diluted earnings per share


.34


.16


.28


.53


.26


.18


.08

  Book value per share at period end


13.24


12.88


12.52


12.27


11.85


.36


1.39

  Tangible book value per share at period end


12.99


12.62


12.26


12.00


11.57


.37


1.42

  Market price at period end


15.16


17.51


15.11


12.62


16.37


(2.35)


(1.21)

  Period end shares outstanding


31,721,236


31,721,236


31,721,236


31,721,236


31,611,581


-


109,655

  Weighted average shares outstanding:















Basic


31,613,581


31,611,603


31,611,581


31,611,581


31,611,358


1,978


2,223

Diluted


32,776,553


32,777,121


32,586,069


32,413,101


32,717,755


(568)


58,798

AVERAGE BALANCE SHEET HIGHLIGHTS















  Noncovered loans, net of unearned income


$      840,428


$      740,905


$      709,071


$      601,610


$      499,463


$   99,523


$   340,965

  Covered loans


707,273


788,511


818,901


768,878


825,879


(81,238)


(118,606)

  Loans, net of unearned income


1,547,701


1,529,416


1,527,972


1,370,488


1,325,342


18,285


222,359

  Assets


2,691,432


2,660,418


2,857,643


2,711,296


2,720,112


31,014


(28,680)

  Deposits


2,190,364


2,203,564


2,404,501


2,298,343


2,306,532


(13,200)


(116,168)

  Liabilities


2,271,111


2,253,317


2,461,147


2,332,119


2,348,973


17,794


(77,862)

  Equity


420,321


407,101


396,496


379,177


371,139


13,220


49,182

  Tangible common equity


412,222


398,751


387,784


370,545


362,274


13,471


49,948

KEY METRICS















  Return on average assets


1.65 %


.78 %


1.26 %


2.50 %


1.27 %


.87 %


.38 %

  Return on average equity


10.56


5.08


9.09


17.90


9.27


5.48


1.29

  Yield on earning assets


9.34


7.60


8.37


9.36


7.27


1.74


2.07

  Cost of funds


.47


.52


.60


.79


1.12


(.05)


(.65)

  Rate on interest-bearing liabilities


.55


.60


.69


.89


1.25


(.05)


(.70)

  Net interest margin


8.85


7.03


7.70


8.50


6.00


1.82


2.85

  Average equity to average assets


15.62


15.30


13.87


13.99


13.64


.32


1.98

  Leverage ratio


15.24


15.06


13.76


14.16


13.49


.18


1.75

  Tier I risk-based capital ratio


31.45


32.92


33.84


33.78


34.80


(1.47)


(3.35)

  Total risk-based capital ratio


32.77


34.22


35.15


35.03


35.46


(1.45)


(2.69)

  Efficiency ratio  (1)


49.63


73.10


45.15


41.73


59.96


(23.47)


(10.33)

  Average loans to average deposits


70.66


69.41


63.55


59.63


57.46


1.25


13.20

  Noninterest-bearing deposits to total deposits


15.85


14.30


12.93


11.70


10.85


1.55


5.00

  Nonperforming loans to total noncovered

    loans (2)


.52


.49


.31


.36


.64


.03


(.12)

  Nonperforming assets to loans + ORE:















Noncovered


.63


.60


.48


.52


.77


.03


(.14)

Covered


8.07


7.87


9.42


10.95


11.21


.20


(3.14)
















(1) Calculated on a fully tax-equivalent basis.















(2) The ratio of nonperforming covered loans to total covered loans  is not presented, as there are no covered loans designated as nonperforming.

































State Bank Financial Corporation











2Q12 Financial Supplement:  Table 2











Condensed Consolidated Balance Sheet











Quarterly (Unaudited)























2Q Change vs.

(Dollars in thousands)


2Q12


1Q12


4Q11


3Q11


2Q11


1Q12


2Q11

Assets















Cash and amounts due from depository

  institutions


$          6,921


$        11,287


$        13,747


$          8,237


$          9,181


$   (4,366)


$     (2,260)

Interest-bearing deposits in other financial

  institutions


279,060


199,031


206,785


353,760


363,309


80,029


(84,249)

     Cash and cash equivalents


285,981


210,318


220,532


361,997


372,490


75,663


(86,509)

Investment securities available for sale


280,662


322,832


349,929


350,225


349,387


(42,170)


(68,725)

Federal Home Loan Bank stock


4,651


8,802


8,802


8,882


10,604


(4,151)


(5,953)

Loans receivable:















     Noncovered under FDIC loss share

       agreements


881,120


802,955


701,029


650,312


546,154


78,165


334,966

     Covered under FDIC loss share agreements,

       net


687,451


743,838


812,154


770,102


814,361


(56,387)


(126,910)

     Allowance for loan losses (noncovered loans)


(13,317)


(11,681)


(10,207)


(7,670)


(6,914)


(1,636)


(6,403)

     Allowance for loan losses (covered loans)


(67,346)


(56,087)


(59,277)


(14,075)


-


(11,259)


(67,346)

  Net loans


1,487,908


1,479,025


1,443,699


1,398,669


1,353,601


8,883


134,307

Mortgage loans held for sale


1,907


3,719


6,229


1,661


2,516


(1,812)


(609)

Other real estate owned:















     Noncovered under FDIC loss share

       agreements


976


957


1,210


1,072


738


19


238

     Covered under FDIC loss share agreements


60,334


63,572


84,496


94,647


102,822


(3,238)


(42,488)

Premises and equipment, net


38,298


36,971


36,760


36,832


35,741


1,327


2,557

Goodwill


6,562


6,562


6,562


6,562


6,562


-


-

Core deposit intangible, net


1,360


1,636


1,882


1,925


2,161


(276)


(801)

FDIC receivable for loss share agreements, net


419,786


460,593


529,440


358,096


468,361


(40,807)


(48,575)

Other assets


81,804


81,661


86,793


54,792


61,298


143


20,506

Total assets


$   2,670,229


$   2,676,648


$   2,776,334


$   2,675,360


$   2,766,281


$   (6,419)


$   (96,052)

Liabilities and Shareholders' Equity















Noninterest-bearing deposits


343,214


312,967


297,188


$      262,331


$      256,087


$   30,247


$    87,127

Interest-bearing deposits


1,821,922


1,875,908


2,001,277


1,980,652


2,103,343


(53,986)


(281,421)

Total deposits


2,165,136


2,188,875


2,298,465


2,242,983


2,359,430


(23,739)


(194,294)

Securities sold under agreements to repurchase


2,845


1,421


4,749


6,145


4,831


1,424


(1,986)

Notes payable


2,531


2,535


2,539


2,542


2,546


(4)


(15)

Other liabilities


79,663


75,314


73,293


34,559


24,868


4,349


54,795

Total liabilities


2,250,175


2,268,145


2,379,046


2,286,229


2,391,675


(17,970)


(141,500)

Total shareholders' equity


420,054


408,503


397,288


389,131


374,606


11,551


45,448

Total liabilities and shareholders' equity


$   2,670,229


$   2,676,648


$   2,776,334


$   2,675,360


$   2,766,281


$   (6,419)


$   (96,052)

Capital Ratios















Average equity to average assets


15.62 %


15.30 %


13.37 %


13.99 %


13.64 %


.32 %


1.98 %

Leverage ratio


15.24


15.06


13.76


14.16


13.49


.18


1.75

Tier I risk-based capital ratio


31.45


32.92


33.84


33.78


34.80


(1.47)


(3.35)

Total risk-based capital ratio


32.77


34.22


35.15


35.03


35.46


(1.45)


(2.69)














































State Bank Financial Corporation















2Q12 Financial Supplement:  Table 3















Condensed Consolidated Income Statement















Quarterly (Unaudited)



























2Q12 Change vs.

(Dollars in thousands, except per share data)


2Q12


1Q12


4Q11


3Q11


2Q11


1Q12


2Q11

Total interest income on invested funds


$                3,027


$                3,005


$                3,154


$                3,040


$                2,768


$            22


$          259

Interest income on noncovered loans,

  including fees


13,722


11,834


12,486


10,096


9,174


1,888


4,548

Accretion income on covered loans


32,191


23,490


29,408


36,938


25,139


8,701


7,052

Total interest expense


2,566


2,852


3,595


4,603


6,457


(286)


(3,891)

   Net interest income


46,374


35,477


41,453


45,471


30,624


10,897


15,750

Provision for loan losses (noncovered loans)


2,125


1,535


2,868


1,060


1,593


590


532

Provision for loan losses (covered loans)


2,902


(1,283)


16,768


2,815


451


4,185


2,451

   Net interest income after provision for

     loan losses


41,347


35,225


21,817


41,596


28,580


6,122


12,767

Noninterest income:















   Accretion (amortization) of FDIC receivable

     for loss share agreements


(3,997)


(7,001)


131


1,775


3,722


3,004


(7,719)

   Service charges on deposits


1,199


1,212


1,370


1,383


1,435


(13)


(236)

   Mortgage banking income


311


302


349


260


228


9


83

   Gain (loss) on sale of investment securities


-


93


(20)


(31)


-


(93)


-

   Gains on FHLB stock redemptions


434


-


772


574


1,132


434


(698)

   Gains on acquisitions


-


-


14,890


-


-


-


-

   ATM income


610


585


551


525


541


25


69

   Other


200


1,031


740


2,203


777


(831)


(577)

Total noninterest income


(1,243)


(3,778)


18,783


6,689


7,835


2,535


(9,078)

Noninterest expense:















   Salaries and employee benefits


13,628


12,963


14,333


12,293


11,895


665


1,733

   Occupancy and equipment


2,419


2,457


2,795


2,008


1,997


(38)


422

   Legal and professional fees


2,173


1,517


1,342


1,758


1,574


656


599

   Marketing


366


264


935


844


936


102


(570)

   Federal insurance premiums and other

     regulatory fees


355


418


193


(33)


1,210


(63)


(855)

   Net cost of operations of other real estate

     owned


458


2,078


4,322


1,998


2,485


(1,620)


(2,027)

    Data processing


1,336


1,864


1,387


1,285


1,165


(528)


171

   Core deposit intangible amortization expense


276


246


241


236


247


30


29

   Other


1,415


1,406


1,679


1,400


1,585


9


(170)

Total noninterest expense


22,426


23,213


27,227


21,789


23,094


(787)


(668)

Income before income taxes


17,678


8,234


13,373


26,496


13,321


9,444


4,357

   Income tax expense


6,647


3,096


4,284


9,392


4,739


3,551


1,908

Net income


$              11,031


$                5,138


$                9,089


$              17,104


$                8,582


$       5,893


$       2,449

Basic earnings per share


$                    .35


$                    .16


$                    .29


$                    .54


$                    .27


$           .19


$           .08

Diluted earnings per share


.34


.16


.28


.53


.26


.18


.08

Weighted average common shares

  outstanding:















Basic


31,613,581


31,611,603


31,611,581


31,611,581


31,611,358


1,978


2,223

Diluted


32,776,553


32,777,121


32,586,069


32,413,101


32,717,755


(568)


58,798














































State Bank Financial Corporation













2Q12 Financial Supplement:  Table 4













Condensed Consolidated Composition of Loans and Deposits









Quarterly (Unaudited)























2Q12 Change vs.

(Dollars in thousands)


2Q12


1Q12


4Q11


3Q11


2Q11


1Q11


2Q11

Composition of Loans















Noncovered loans:















   Construction, land & land development


$      253,980


$      212,165


$      162,382


$      139,433


$      112,846


$    41,815


$    141,134

   Other commercial real estate


356,476


339,084


307,814


292,559


274,153


17,392


82,323

   Total commercial real estate


610,456


551,249


470,196


431,992


386,999


59,207


223,457

   Commercial & industrial


35,186


38,021


35,817


36,253


40,754


(2,835)


(5,568)

   Owner-occupied real estate


154,533


152,552


139,128


124,885


69,612


1,981


84,921

   Total commercial & industrial


189,719


190,573


174,945


161,138


110,366


(854)


79,353

   Residential real estate


41,449


39,356


33,738


29,293


26,510


2,093


14,939

   Consumer & other


39,496


21,777


22,150


27,889


22,279


17,719


17,217

   Total noncovered loans


881,120


802,955


701,029


650,312


546,154


78,165


334,966

Covered loans:















   Construction, land & land development


136,200


176,164


190,110


184,242


202,420


(39,964)


(66,220)

   Other commercial real estate


208,975


212,783


233,575


229,548


233,557


(3,808)


(24,582)

   Total commercial real estate


345,175


388,947


423,685


413,790


435,977


(43,772)


(90,802)

   Commercial & industrial


29,298


32,722


38,174


39,855


49,277


(3,424)


(19,979)

   Owner-occupied real estate


118,848


128,219


143,523


118,324


126,603


(9,371)


(7,755)

   Total commercial & industrial


148,146


160,941


181,697


158,179


175,880


(12,795)


(27,734)

   Residential real estate


180,167


177,790


189,109


182,021


189,695


2,377


(9,528)

   Consumer & other


13,963


16,160


17,663


16,112


12,809


(2,197)


1,154

   Total covered loans


687,451


743,838


812,154


770,102


814,361


(56,387)


(126,910)

   Total loans


$   1,568,571


$   1,546,793


$   1,513,183


$   1,420,414


$   1,360,515


$    21,778


$    208,056

Composition of Deposits















Noninterest-bearing demand deposits


$      343,214


$      312,967


$      297,188


$      262,331


$      256,087


$    30,247


$      87,127

Interest-bearing transaction accounts


331,550


316,738


359,020


286,130


278,184


14,812


53,366

Savings and money market accounts


1,016,619


1,103,151


1,140,552


1,234,359


1,323,414


(86,532)


(306,795)

Time deposits less than $100,000


222,402


249,047


274,415


245,377


272,250


(26,645)


(49,848)

Time deposits $100,000 or greater


170,844


196,197


213,200


198,790


210,861


(25,353)


(40,017)

Brokered and wholesale time deposits


80,507


10,775


14,090


15,996


18,634


69,732


61,873

   Total deposits


$   2,165,136


$   2,188,875


$   2,298,465


$   2,242,983


$   2,359,430


$   (23,739)


$   (194,294)
















State Bank Financial Corporation











2Q12 Financial Supplement:  Table 5











Condensed Consolidated Asset Quality Data











Quarterly (Unaudited)























2Q12 Change vs.

(Dollars in thousands)


2Q12


1Q12


4Q11


3Q11


2Q11


1Q12


2Q11

Nonperforming noncovered assets:















   Nonaccrual loans


$     4,197


$     3,561


$     1,905


$     2,088


$       3,478


$        636


$          719

   Troubled debt restructurings


347


335


256


259


-


12


347

 Total nonperforming noncovered loans


4,544


3,896


2,161


2,347


3,478


648


1,066

   Other real estate owned


976


957


1,210


1,072


738


19


238

 Total nonperforming noncovered assets


5,520


4,853


3,371


3,419


4,216


667


1,304

Nonperforming covered assets:















   Other real estate owned (1)


$   60,334


$   63,572


$   84,496


$   94,647


$   102,822


$   (3,238)


$   (42,488)

Noncovered assets:















   Year-to-date charge-offs


$        555


$          68


$     1,744


$     1,390


$       1,077


$        487


$        (522)

   Year-to-date recoveries


5


7


118


95


86


(2)


(81)

   Year-to-date net charge-offs


$        550


$          61


$     1,626


$     1,295


$          991


$        489


$        (441)

   Annualized YTD net charge-offs to total

     average noncovered loans


.13 %


.03 %


.23 %


.29 %


.40 %


.10 %


(.27)%

Ratios:















Nonperforming loans to total noncovered

  loans (2)


.52 %


.49 %


.31 %


.36 %


.64 %


.03 %


(.12)%

Nonperforming assets to loans + ORE:















   Noncovered


.63


.60


.48


.52


.77


.03


(.14)

   Covered


8.07


7.87


9.42


10.95


11.21


.20


(3.14)

Allowance for loan losses to loans:















   Noncovered


1.51


1.45


1.46


1.18


1.27


.06


.24

   Covered


9.80


7.54


7.30


1.83


-


2.26


9.80
















(1) Total nonperforming assets for covered assets consist of other real estate only.  There are no covered loans designated as nonperforming.

(2) The ratio of nonperforming loans to total loans is disclosed for noncovered loans only because there are no covered loans designated as nonperforming.
















 

State Bank Financial Corporation












2Q12 Financial Supplement:  Table 6












Condensed Consolidated Average Balances and Yield Analysis










Quarterly (Unaudited)

























2Q12 Change vs.

(Dollars in thousands)


2Q12


1Q12


4Q11


3Q11


2Q11


1Q12


2Q11

Selected Average Balances















   Interest-bearing deposits in other

     financial institutions


$    258,178


$    158,949


$    261,853


$    389,013


$    340,966


$   99,229


$   (82,788)

   Taxable investment securities


292,678


333,661


365,388


353,426


373,404


(40,983)


(80,726)

   Nontaxable investment securities, tax

     equivalent basis


12,469


10,199


11,267


11,823


10,540


2,270


1,929

   Noncovered loans receivable (1)


840,428


740,905


709,071


601,610


499,463


99,523


340,965

   Covered loans receivable


707,273


788,511


818,901


768,878


825,879


(81,238)


(118,606)

  Total earning assets


2,111,026


2,032,225


2,166,480


2,124,750


2,050,252


78,801


60,774

  Total nonearning assets


580,406


628,193


691,163


586,546


669,860


(47,787)


(89,454)

  Total assets


2,691,432


2,660,418


2,857,643


2,711,296


2,720,112


31,014


(28,680)

   Interest-bearing transaction accounts


323,126


310,662


309,991


268,364


235,218


12,464


87,908

   Savings & money market deposits


1,052,130


1,115,877


1,204,433


1,294,561


1,301,519


(63,747)


(249,389)

   Time deposits less than $100,000


237,154


262,116


322,617


258,196


294,247


(24,962)


(57,093)

   Time deposits $100,000 or greater


247,466


214,205


261,114


216,408


234,893


33,261


12,573

   FHLB advances


-


-


4,566


-


-


-


-

   Notes payable


2,533


2,537


2,541


2,545


2,550


(4)


(17)

   Securities sold under agreements to

     repurchase


2,776


3,564


4,030


4,098


2,345


(788)


431

  Total interest-bearing liabilities


1,865,185


1,908,961


2,109,292


2,044,172


2,070,772


(43,776)


(205,587)

   Noninterest-bearing demand deposits


330,488


300,704


306,346


260,814


240,655


29,784


89,833

   Other liabilities


75,438


43,652


45,509


27,133


37,546


31,786


37,892

   Shareholders' equity


420,321


407,101


396,496


379,177


371,139


13,220


49,182

  Total liabilities and shareholders'

    equity


2,691,432


2,660,418


2,857,643


2,711,296


2,720,112


31,014


(28,680)

Net Interest Margins (2)















   Interest-bearing deposits in other

     financial institutions


.24 %


.26 %


.32 %


.25 %


.22 %


(.02)%


.02 %

   Taxable investment securities


3.80


3.37


3.07


3.02


2.67


.43


1.13

   Nontaxable investment securities, tax

     equivalent basis (3)


5.41


6.33


6.59


5.77


6.05


(.92)


(.64)

   Noncovered loans receivable


6.57


6.42


6.99


6.66


7.37


.15


(.80)

   Covered loans receivable


18.31


11.98


14.57


19.06


12.21


6.33


6.10

  Total earning assets


9.34 %


7.60 %


8.37 %


9.36 %


7.27 %


1.74 %


2.07 %

   Interest-bearing transaction accounts


.12


.13


.12


.21


.26


(.01)


(.14)

   Savings & money market deposits


.51


.50


.54


.71


1.02


.01


(.51)

   Time deposits less than $100,000


.86


1.12


1.17


1.75


2.21


(.26)


(1.35)

   Time deposits $100,000 or greater


.95


1.08


1.38


1.77


2.22


(.13)


(1.27)