State Bank Reports 2011 Net Income of $43 Million

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Feb 06, 2012, 07:00 ET

ATLANTA, Feb. 6, 2012 /PRNewswire/ -- State Bank Financial Corporation (NASDAQ: STBZ) today announced unaudited financial results for the quarter ended December 31, 2011 and the full year 2011. Net income for the fourth quarter was $9.1 million, bringing the full year 2011 net income to $43.0 million. Fully diluted earnings per share were $.28 for the quarter and $1.32 for the full year 2011.

"I am very pleased with the progress we made on strategic priorities in 2011. Our focus on lending in the communities we serve and growing core deposit relationships is clearly reflected in our financials. Results for the last two quarters of 2011 reflect some of the inherent volatility related to loss share accounting, but come together nicely to close out a really successful year," said State Bank Chairman and CEO Joe Evans.

Loans not covered by loss share agreements with the Federal Deposit Insurance Corporation (FDIC) grew $50.7 million in the fourth quarter of 2011, and $358.2 million for the full year, in a challenging economic environment for organic loan growth. Noncovered loans comprised 48.6 percent of the total net loans at year end, up from 26.9 percent at December 31, 2010. Total assets at year-end 2011 were $2.75 billion.

Through growing noninterest-bearing deposits and actively managing interest-bearing deposits, State Bank's cost of funds in the fourth quarter of 2011 was 60 basis points, a 19 basis point improvement from the third quarter and an 81 basis point improvement from the fourth quarter of 2010. Total deposits at year-end 2011 were $2.30 billion.

Tangible book value per share climbed $.26 in the quarter to $12.26 as of December 31, 2011. Shareholders' equity at year-end was $397.3 million, and capital ratios remain strong, with the leverage ratio at 13.8 percent and total capital to risk weighted assets at 37.0 percent.

Also in the fourth quarter of 2011, State Bank and Trust Company, a wholly owned subsidiary of State Bank Financial Corporation, acquired substantially all of the assets and deposits of Piedmont Community Bank and Community Capital Bank in transactions facilitated by the FDIC.

Net interest income was $41.5 million in the fourth quarter of 2011, down from $45.5 million in the third quarter largely due to $7.5 million less accretion income on covered loans, which was partially offset by $2.4 million higher interest income on noncovered loans.

Interest expense was $3.6 million in the fourth quarter, down $1.0 million from the third quarter, a direct result of the company's lower cost of funds, and despite growing total deposits $55.5 million in the fourth quarter.

Provision for loan losses on covered loans was $16.8 million in the fourth quarter, up from $2.8 million in the third quarter. This increase was primarily the result of revising the cash flow forecasts for loans secured by underperforming commercial real estate, subdivision lots and raw land with the benefit of the experience gained through the liquidation of more than $100 million of foreclosed properties in 2011. Observing that the actual sales in these property classes have been taking place at deeper discounts to their most recent appraised values than other property classes, management has applied what they believe to be a more appropriately conservative discount to current appraisals as terminal values in the cash flow model. Management believes this provision reflects an appropriate allocation of discounts among the various asset classes of acquired loans and is expected to result in a reduction of future losses recorded at the ultimate disposition of foreclosed real estate. Provision for loan losses on noncovered loans was $2.9 million in the fourth quarter, up from $1.1 million in the third quarter, reflecting continued organic loan growth.

Total noninterest income was $18.8 million in the fourth quarter compared to $6.7 million in the third quarter, driven by $14.9 million in gains on acquisitions occurring in the fourth quarter.

Noninterest expense for the fourth quarter was $27.2 million, up from $21.8 million in the third quarter, largely due to higher net other real estate owned costs and other expenses impacted by the fourth quarter acquisitions.

Detailed Results

Supplemental tables displaying financial results for fourth quarter 2011 and the previous four quarters are included with this press release.

Conference Call

State Bank Chairman and CEO Joe Evans, Vice Chairman, President and Chief Credit Officer Kim Childers and Chief Financial Officer Tom Callicutt will discuss financial and business results for the quarter on a conference call today at 4:00 p.m. EST. The dial in number is 1.800.684.2837. 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 at http://www.snl.com/IRWebLinkX/presentations.aspx?iid=4249236.

About State Bank Financial Corporation and State & 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 $2.75 billion in assets as of December 31, 2011. State Bank has locations in Metro Atlanta and Bibb, Houston, Dooly, and Jones counties in Middle Georgia. State Bank Financial Corporation is headquartered in Atlanta and State Bank and Trust Company is headquartered in Macon, Georgia.

State Bank was named the top performing bank in the United States by Bank Director magazine's 2011 Bank Performance Scorecard, a ranking of the 150 largest U.S. publicly-traded banks and thrifts based on 2010 calendar-year financials.

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.

Media Contact: David Rubinger 404.502.1240 / [email protected]
Investor Relations Contact: David Black 404.266.4490 / [email protected]


State Bank Financial Corporation
4Q11 Financial Supplement: Table 1
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
																	*4Q11 Change vs.*
(Dollars in thousands, except per share data)		4Q11			3Q11			2Q11			1Q11			4Q10			3Q11			4Q10
INCOME STATEMENT HIGHLIGHTS
Total interest income on invested funds	$	3,154		$	3,040		$	2,768		$	2,577		$	2,456		$	114		$	698
Interest income on noncovered loans, including fees		12,486			10,096			8,324			7,589			5,604			2,390			6,882
Accretion income on covered loans		29,408			36,938			25,989			24,632			38,631			(7,530)			(9,223)
Total interest expense		3,595			4,603			6,457			7,118			8,581			(1,008)			(4,986)
Net interest income		41,453			45,471			30,624			27,680			38,110			(4,018)			3,343
Provision for loan losses		19,636			3,875			2,044			961			2,108			15,761			17,528
Noninterest income		18,783			6,689			7,835			8,064			11,502			12,094			7,281
Noninterest expense		27,227			21,789			23,094			21,439			25,860			5,438			1,367
Earnings before income taxes		13,373			26,496			13,321			13,344			21,644			(13,123)			(8,271)
Income tax expense		4,284			9,392			4,739			5,113			8,153			(5,108)			(3,869)
Net earnings	$	9,089		$	17,104		$	8,582		$	8,231		$	13,491		$	(8,015)		$	(4,402)
COMMON STOCK DATA
Basic earnings per share	$	.29		$	.54		$	.27		$	.26		$	.43		$	(.25)		$	(.14)
Diluted earnings per share		.28			.53			.26			.25			.41			(.25)			(.13)
Book value at period end per share		12.52			12.27			11.85			11.62			11.37			.26			1.16
Tangible book value at period end per share		12.26			12.00			11.57			11.34			11.08			.26			1.18
Market price at period end (1)		15.11			12.62			16.37			16.90			14.50			2.49			.61
Period end shares outstanding		31,721,236			31,721,236			31,611,581			31,610,904			31,610,904			-			110,332
Weighted average shares outstanding:
Basic		31,611,581			31,611,581			31,611,358			31,610,904			31,610,904			-			677
Diluted		32,586,069			32,413,101			32,717,755			32,622,623			32,535,141			172,968			50,928
AVERAGE BALANCE SHEET HIGHLIGHTS
Noncovered loans, net of unearned income	$	709,071		$	601,610		$	499,463		$	405,635		$	317,528		$	107,461		$	391,543
Covered loans		818,901			768,878			825,879			890,107			891,524			50,023			(72,623)
Loans, net of unearned income		1,527,972			1,370,488			1,325,342			1,295,742			1,209,052			157,484			318,920
Assets		2,857,643			2,711,296			2,720,112			2,729,885			2,786,613			146,347			71,030
Deposits		2,404,501			2,298,343			2,306,532			2,317,500			2,395,992			106,158			8,509
Liabilities		2,461,147			2,332,119			2,348,973			2,365,361			2,436,126			129,028			25,021
Equity		396,496			379,177			371,139			364,524			350,487			17,319			46,009
Tangible common equity		387,784			370,545			362,274			355,407			341,093			17,239			46,691
KEY METRICS
Annualized return on average assets		1.26	%		2.50	%		1.27	%		1.22	%		1.92	%		(1.24)	%		(.66)	%
Annualized return on average equity		9.09			17.90			9.27			9.16			15.27			(8.81)			(6.18)
Yield on earning assets		8.37			9.36			7.27			7.09			9.09			(.99)			(.72)
Cost of funds		.60			.79			1.12			1.24			1.41			(.19)			(.81)
Rate on interest-bearing liabilities		.69			.89			1.25			1.38			1.56			(.20)			(.87)
Net interest margin		7.70			8.50			6.00			5.65			7.42			(.80)			.28
Average equity to average assets		13.87			13.99			13.64			13.35			12.58			(.12)			1.29
Leverage ratio		13.76			14.16			13.49			13.16			12.77			(.40)			.99
Tier I risk-based capital ratio		35.70			33.78			34.80			39.24			43.56			1.92			(7.86)
Total risk-based capital ratio		37.02			35.03			35.46			39.93			44.23			1.99			(7.21)
Efficiency ratio		45.15			41.73			59.96			59.89			52.07			3.42			(6.92)
Average loans to average deposits		63.55			59.63			57.46			55.91			50.46			3.92			13.09
Noninterest-bearing deposits to total deposits		12.93			11.70			10.85			10.12			9.27			1.23			3.66
Nonperforming loans to total noncovered loans (2):		.31			.36			.64			1.23			1.19			(.05)			(.88)
Nonperforming assets to loans + ORE:
Noncovered		.48			.52			.77			1.25			1.21			(.04)			(.73)
Covered		9.42			10.95			11.21			12.82			14.30			(1.53)			(4.88)

(1) In 2010, STBZ common stock was considered a "grey market" security. Trades in grey market stocks are reported by broker-dealers to their Self Regulatory Organization (SRO) and the SRO distributes the trade data to market data vendors and financial websites so investors can track price and volume information. The market price reported for the fourth quarter of 2010 was obtained from the SRO trade data and reflects the last trade on December 28, 2010 as there were no trades on December 31, 2010. All other market prices were obtained from NASDAQ.
(2) The ratio of nonperforming covered loans to total covered loans is not presented, as there are no covered loans classified as nonperforming.


State Bank Financial Corporation
4Q11 Financial Supplement: Table 2
Condensed Consolidated Balance Sheet
Quarterly (Unaudited)
																	*4Q11 Change vs.*
(Dollars in thousands)		4Q11			3Q11			2Q11			1Q11			4Q10			3Q11			4Q10
Assets
Cash and amounts due from depository institutions	$	13,747		$	8,237		$	9,181		$	10,371		$	25,843		$	5,510		$	(12,096)
Interest-bearing deposits in other financial institutions		206,785			353,760			363,309			292,145			360,646			(146,975)			(153,861)
Cash and cash equivalents		220,532			361,997			372,490			302,516			386,489			(141,465)			(165,957)
Investment securities available for sale		349,929			350,225			349,387			385,637			405,581			(296)			(55,652)
Federal Home Loan Bank stock		8,802			8,882			10,604			14,142			14,593			8,802			(5,791)
Loans receivable:
Noncovered under FDIC loss sharing agreements		701,029			650,312			546,154			412,998			342,849			50,717			358,180
Covered under FDIC loss sharing agreements, net		812,154			770,102			814,361			891,190			934,967			42,052			(122,813)
Allowance for loan losses (noncovered loans)		(10,207)			(7,670)			(6,914)			(6,214)			(5,351)			(2,537)			(4,856)
Allowance for loan losses (covered loans)		(59,277)			(14,075)			-			-			-			(45,202)			(59,277)
Net loans		1,443,699			1,398,669			1,353,601			1,297,974			1,272,465			45,030			171,234
Mortgage loans held for sale		6,229			1,661			2,516			859			3,542			4,568			2,687
Other real estate owned:
Noncovered under FDIC loss sharing agreements		1,210			1,072			738			75			75			138			1,135
Covered under FDIC loss sharing agreements		84,496			94,647			102,822			131,074			155,981			(10,151)			(71,485)
Premises and equipment, net		36,760			36,832			35,741			32,157			31,908			(72)			4,852
Goodwill		6,562			6,562			6,562			6,562			6,562			-			-
Core deposit intangible, net		1,882			1,925			2,161			2,408			2,632			(43)			(750)
FDIC receivable for loss sharing agreements, net		529,440			358,096			468,361			457,608			494,428			171,344			35,012
Other assets		57,396			54,792			61,298			57,736			54,323			2,604			3,073
Total assets	$	2,746,937		$	2,675,360		$	2,766,281		$	2,688,748		$	2,828,579		$	71,577		$	(81,642)
Liabilities and Shareholders' Equity
Noninterest-bearing deposits	$	297,188		$	262,331		$	256,087		$	229,817		$	224,543		$	34,857		$	72,645
Interest-bearing deposits		2,001,277			1,980,652			2,103,343			2,040,048			2,197,383			20,625			(196,106)
Total deposits		2,298,465			2,242,983			2,359,430			2,269,865			2,421,926			55,482			(123,461)
Securities sold under agreements to repurchase		4,749			6,145			4,831			5,371			5,246			(1,396)			(497)
Notes payable		2,539			2,542			2,546			2,552			2,560			(3)			(21)
Other liabilities		43,896			34,559			24,868			43,507			39,504			9,337			4,392
Total liabilities		2,349,649			2,286,229			2,391,675			2,321,295			2,469,236			63,420			(119,587)
Total shareholders' equity		397,288			389,131			374,606			367,453			359,343			8,157			37,945
Total liabilities and shareholders' equity	$	2,746,937		$	2,675,360		$	2,766,281		$	2,688,748		$	2,828,579		$	71,577		$	(81,642)
Capital Ratios
Average equity to average assets		13.87	%		13.99	%		13.64	%		13.35	%		12.58	%		(.12)	%		1.29	%
Leverage ratio		13.76			14.16			13.49			13.16			12.77			(.40)			.99
Tier I risk-based capital ratio		35.70			33.78			34.80			39.24			43.56			1.92			(7.86)
Total risk-based capital ratio		37.02			35.03			35.46			39.93			44.23			1.99			(7.21)


State Bank Financial Corporation
4Q11 Financial Supplement: Table 3
Condensed Consolidated Income Statement
Quarterly (Unaudited)
												*4Q11 Change vs.*
(Dollars in thousands, except per share data)		4Q11		3Q11		2Q11		1Q11		4Q10		3Q11		4Q10
Total interest income on invested funds	$	3,154	$	3,040	$	2,768	$	2,577	$	2,456	$	114	$	698
Interest income on noncovered loans, including fees		12,486		10,096		8,324		7,589		5,604		2,390		6,882
Accretion income on covered loans		29,408		36,938		25,989		24,632		38,631		(7,530)		(9,223)
Total interest expense		3,595		4,603		6,457		7,118		8,581		(1,008)		(4,986)
Net interest income		41,453		45,471		30,624		27,680		38,110		(4,018)		3,343
Provision for loan losses (noncovered loans)		2,868		1,060		1,593		961		2,108		1,808		760
Provision for loan losses (covered loans)		16,768		2,815		451		-		-		13,953		16,768
Net interest income after provision for loan losses		21,817		41,596		28,580		26,719		36,002		(19,779)		(14,185)
Noninterest income:
Accretion of FDIC receivable for loss sharing agreements		131		1,775		3,722		4,973		3,905		(1,644)		(3,774)
Service charges on deposits		1,370		1,383		1,435		1,413		1,826		(13)		(456)
Mortgage banking income		349		260		228		157		468		89		(119)
(Loss) gain on sale of investment securities		(20)		(31)		-		(3)		(5)		11		(15)
Gains on FHLB stock redemptions		772		574		1,132		-		-		198		772
Gains on acquisitions		14,890		-		-		-		2,330		14,890		12,560
ATM income		551		525		541		488		469		26		82
Other		740		2,203		777		1,036		2,509		(1,463)		(1,769)
Total noninterest income		18,783		6,689		7,835		8,064		11,502		12,094		7,281
Noninterest expense:
Salaries and employee benefits		14,333		12,293		11,895		11,677		10,929		2,040		3,404
Occupancy and equipment		2,795		2,008		1,997		1,892		2,161		787		634
Legal and professional fees		1,342		1,758		1,574		1,843		1,407		(416)		(65)
Marketing		935		844		936		760		952		91		(17)
Federal insurance premiums and other regulatory fees		193		(33)		1,210		649		856		226		(663)
Net cost of operations of other real estate owned		4,322		1,998		2,485		1,930		6,319		2,324		(1,997)
Data processing		1,387		1,285		1,165		951		1,131		102		256
Core deposit intangible amortization expense		241		236		247		224		427		5		(186)
Other		1,679		1,400		1,585		1,513		1,678		279		1
Total noninterest expense		27,227		21,789		23,094		21,439		25,860		5,438		1,367
Income before income taxes		13,373		26,496		13,321		13,344		21,644		(13,123)		(8,271)
Income tax expense		4,284		9,392		4,739		5,113		8,153		(5,108)		(3,869)
Net income	$	9,089	$	17,104	$	8,582	$	8,231	$	13,491	$	(8,015)	$	(4,402)
Basic earnings per share	$	.29	$	.54	$	.27	$	.26	$	.43	$	(.25)	$	(.14)
Diluted earnings per share		.28		.53		.26		.25		.41		(.25)		(.13)
Weighted average common shares outstanding:
Basic		31,611,581		31,611,581		31,611,358		31,610,904		31,610,904		-		677
Diluted		32,586,069		32,413,101		32,717,755		32,622,623		32,535,141		172,968		50,928


State Bank Financial Corporation
4Q11 Financial Supplement: Table 4
Condensed Consolidated Composition of Loans and Deposits
Quarterly (Unaudited)

												*4Q11 Change vs.*
(Dollars in thousands)		4Q11		3Q11		2Q11		1Q11		4Q10		3Q11		4Q10
Composition of Loans
Noncovered loans:
Residential real estate	$	38,616	$	32,472	$	26,510	$	23,298	$	23,255	$	6,144	$	15,361
Commercial real estate - construction		121,539		111,255		112,846		90,257		70,543		10,284		50,996
Commercial real estate - other		483,684		443,649		343,765		247,369		196,243		40,035		287,441
Commercial and industrial		31,108		31,315		40,754		37,077		38,919		(207)		(7,811)
Consumer and other		26,082		31,621		22,279		14,997		13,889		(5,539)		12,193
Total noncovered loans		701,029		650,312		546,154		412,998		342,849		50,717		358,180
Covered loans:
Residential real estate		189,468		182,367		189,695		189,267		191,444		7,101		(1,976)
Commercial real estate - construction		189,331		179,753		202,420		244,949		264,858		9,578		(75,527)
Commercial real estate - other		376,849		353,417		360,160		368,769		372,775		23,432		4,074
Commercial and industrial		38,784		40,380		49,277		71,131		87,590		(1,596)		(48,806)
Consumer and other		17,722		14,185		12,809		17,074		18,300		3,537		(578)
Total covered loans		812,154		770,102		814,361		891,190		934,967		42,052		(122,813)
Total Loans	$	1,513,183	$	1,420,414	$	1,360,515	$	1,304,188	$	1,277,816	$	92,769	$	235,367
Composition of Deposits
Noninterest-bearing demand deposits	$	297,188	$	262,331	$	256,087	$	229,817	$	224,543	$	34,857	$	72,645
Interest-bearing transaction accounts		359,020		286,130		278,184		244,419		293,660		72,890		65,360
Savings and money market accounts		1,140,552		1,234,359		1,323,414		1,248,126		1,276,798		(93,807)		(136,246)
Time deposits less than $100,000		274,415		245,377		272,250		298,633		326,630		29,038		(52,215)
Time deposits $100,000 or greater		213,200		198,790		210,861		226,373		249,027		14,410		(35,827)
Brokered and wholesale time deposits		14,090		15,996		18,634		22,497		51,268		(1,906)		(37,178)
Total deposits	$	2,298,465	$	2,242,983	$	2,359,430	$	2,269,865	$	2,421,926	$	55,482	$	(123,461)


State Bank Financial Corporation
4Q11 Financial Supplement: Table 5
Condensed Consolidated Asset Quality Data
Quarterly (Unaudited)
																	*4Q11 Change vs.*
(Dollars in thousands)		4Q11			3Q11			2Q11			1Q11			4Q10			3Q11			4Q10
Nonperforming noncovered assets:
Nonaccrual loans	$	1,905		$	2,088		$	3,478		$	5,099		$	4,079		$	(183)		$	(2,174)
Accruing loans 90 days or more past due		-			-			-			-			-			-			-
Troubled debt restructurings		256			259			-			-			-			(3)			256
Total nonperforming noncovered loans		2,161			2,347			3,478			5,099			4,079			(186)			(1,918)
Other real estate owned		1,210			1,072			738			75			75			138			1,135
Total nonperforming noncovered assets		3,371			3,419			4,216			5,174			4,154			(48)			(783)
Nonperforming covered assets:
Other real estate owned (1)	$	84,496		$	94,647		$	102,822		$	131,074		$	155,981		$	(10,151)		$	(71,485)
Noncovered assets:
Year-to-date charge-offs	$	1,744		$	1,390		$	1,077		$	98		$	1,209		$	354		$	535
Year-to-date recoveries		118			95			86			-			81			23			37
Year-to-date net charge-offs	$	1,626		$	1,295		$	991		$	98		$	1,128		$	331		$	498
Annualized YTD net charge-offs to total noncovered loans		.23	%		.27	%		.37	%		.10	%		.33	%		(.04)	%		(.10)	%
Ratios:
Nonperforming loans to total noncovered loans (2):		.31	%		.36	%		.64	%		1.23	%		1.19	%		(.05)	%		(.88)	%
Nonperforming assets to loans + ORE:
Noncovered		.48			.52			.77			1.25			1.21			(.04)			(.73)
Covered		9.42			10.95			11.21			12.82			14.30			(1.53)			(4.88)
Allowance for loan losses to loans:
Noncovered		1.46			1.18			1.27			1.50			1.56			.28			(.10)
Covered		7.30			1.83			-			-			-			5.47			7.30

(1) Total nonperforming assets for covered assets consist of other real estate only. There are no covered loans classified as nonperforming.
(2) The ratio of nonperforming loans to total loans is disclosed for noncovered loans only because there are no covered loans classified as nonperforming.


State Bank Financial Corporation
4Q11 Financial Supplement: Table 6
Condensed Consolidated Average Balances and Yield Analysis
Quarterly (Unaudited)
																	*4Q11 Change vs.*
(Dollars in thousands)		4Q11			3Q11			2Q11			1Q11			4Q10			3Q11			4Q10
Selected Average Balances
Interest-earning assets	$	261,853		$	389,013		$	340,966		$	282,665		$	405,365		$	(127,160)		$	(143,512)
Taxable investment securities		365,388			353,426			373,404			403,649			416,077			11,962			(50,689)
Nontaxable investment securities, tax equivalent basis		11,267			11,823			10,540			10,291			9,141			(556)			2,126
Noncovered loans receivable (1)		709,071			601,610			499,463			405,635			317,528			107,461			391,543
Covered loans receivable		818,901			768,878			825,879			890,107			891,524			50,023			(72,623)
Total earning assets		2,166,480			2,124,750			2,050,252			1,992,347			2,039,635			41,730			126,845
Total nonearning assets		691,163			586,546			669,860			737,538			746,978			104,617			(55,815)
Total assets		2,857,643			2,711,296			2,720,112			2,729,885			2,786,613			146,347			71,030
Interest-bearing transaction accounts		309,991			268,364			235,218			244,476			265,506			41,627			44,485
Savings & money market deposits		1,204,433			1,294,561			1,301,519			1,267,305			1,250,699			(90,128)			(46,266)
Time deposits less than $100,000		322,617			258,196			294,247			325,471			373,152			64,421			(50,535)
Time deposits $100,000 or greater		261,114			216,408			234,893			249,261			279,963			44,706			(18,849)
FHLB advances		4,566			-			-			-			-			4,566			4,566
Notes payable		2,541			2,545			2,550			2,557			28			(4)			2,513
Securities sold under agreements to repurchase		4,030			4,098			2,345			3,576			3,665			(68)			365
Total interest-bearing liabilities		2,109,292			2,044,172			2,070,772			2,092,646			2,173,013			65,120			(63,721)
Noninterest-bearing demand deposits		306,346			260,814			240,655			230,987			226,672			45,532			79,674
Other liabilities		45,509			27,133			37,546			41,728			36,441			18,376			9,068
Total shareholders' equity		396,496			379,177			371,139			364,524			350,487			17,319			46,009
Net Interest Margins (2)
Interest-earning assets		.32	%		.25	%		.22	%		.28	%		.25	%		.07	%		.07	%
Taxable investment securities		3.07			3.02			2.67			2.29			2.01			.05			1.06
Nontaxable investment securities, tax equivalent basis (3)		6.59			5.76			6.04			6.22			6.06			.83			.53
Noncovered loans receivable		6.99			6.66			6.92			7.59			7.00			.33			(.01)
Covered loans receivable		14.57			19.06			12.37			11.22			17.19			(4.49)			(2.62)
Total earning assets		8.37			9.36			7.27			7.09			9.09			(.99)			(.72)
Interest-bearing transaction accounts		.12			.21			.26			.31			.40			(.09)			(.28)
Savings & money market deposits		.54			.71			1.02			1.18			1.50			(.17)			(.96)
Time deposits less than $100,000		1.17			1.75			2.21			2.22			2.14			(.58)			(.97)
Time deposits $100,000 or greater		1.38			1.76			2.22			2.26			2.23			(.38)			(.85)
FHLB advances		.94			-			-			-			-			.94			.94
Notes payable		8.39			8.77			9.81			11.35			-			(.38)			8.39
Securities sold under agreements to repurchase		.27			.10			.21			1.49			.24			.17			.03
Total interest-bearing liabilities		.69			.89			1.25			1.38			1.56			(.20)			(.87)
Net interest spread		7.68			8.47			6.02			5.71			7.53			(.79)			.15
Net interest margin		7.70			8.50			6.00			5.65			7.42			(.80)			.28

(1) Includes nonaccruing loans.
(2) Annualized for the applicable period.
(3) Reflects taxable equivalent adjustments using the statutory tax rate of 35% in adjusting interest on tax-exempt securities to fully taxable basis. The taxable equivalent adjustments included above amount to $65 for 4Q11, $60 for 3Q11, $56 for 2Q11, $55 for 1Q11, and $49 for 4Q10.