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State Bank Financial Corporation
September 2016
Investor Presentation
2
Cautionary Note Regarding Forward-Looking
Statements
This presentation contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements, which are based on certain
assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words “will,” “expect,” “should,” “anticipate,” “may,” and
“project,” as well as similar expressions. Pro forma financial information is not a guarantee of future results and is presented for informational purposes only. These forward-
looking statements include, but are not limited to, statements regarding our proposed acquisitions of NBG Bancorp (“NBG”) and its subsidiary and S Bankshares and its
subsidiary, including our belief that these acquisitions will provide entry into attractive new markets and other key transaction assumptions, statements regarding our significant
opportunity for deposit growth in the Atlanta and Augusta markets, statements regarding our strategic outlook, including our forward vision (slide 8), statements regarding
building our long-term earnings power (slide 9), and other statements about expected developments or events, our future financial performance, and the execution of our
strategic goals. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions (“risk factor”) that are difficult to
predict with regard to timing, extent, likelihood and degree. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such
forward-looking statements. We undertake no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events or
otherwise. Risk factors including, without limitation, the following:
• completion of the transactions with NBG and S Bankshares is dependent on, among other things, receipt of regulatory approvals and S Bankshares shareholder approval, the
timing of which cannot be predicted and which may not be received at all;
• the impact of the completion of the transactions with NBG and S Bankshares on our financial statements will be affected by the timing of the transactions;
• the transactions may be more expensive to complete and the anticipated benefits, including anticipated cost savings and strategic gains, may be significantly harder or take
longer to achieve than expected or may not be achieved in their entirety as a result of unexpected factors or events;
• the integration of NBG’s and S Bankshares’ business and operations into ours may be more costly than anticipated or have unanticipated adverse results related to NBG’s,
S Bankshares’ or our existing businesses;
• our ability to achieve anticipated results from the transactions with NBG and S Bankshares will depend on the state of the economic and financial markets going forward;
• general economic conditions (both generally and in our markets) may be less favorable than expected, which could result in, among other things, a deterioration in credit
quality, a reduction in demand for credit and a decline in real estate values;
• a general decline in the real estate and lending markets, particularly in our market areas, could negatively affect our financial results;
• restrictions or conditions imposed by our regulators on our operations may make it more difficult for us to achieve our goals;
• legislative or regulatory changes, including changes in accounting standards and compliance requirements, may adversely affect us;
• competitive pressures among depository and other financial institutions may increase significantly;
• changes in the interest rate environment may reduce margins or the volumes or values of the loans we make or have acquired;
• other financial institutions have greater financial resources and may be able to develop or acquire products that enable them to compete more successfully than we can;
• our ability to attract and retain key personnel can be affected by the increased competition for experienced employees in the banking industry;
• adverse changes may occur in the bond and equity markets;
• war or terrorist activities may cause deterioration in the economy or cause instability in credit markets; and
• economic, governmental or other factors may prevent the projected population, residential and commercial growth in the markets in which we operate.
In addition, risk factors include, but are not limited to, the risk factors described in Item 1A, Risk Factors, in our Annual Report on Form 10-K for the most recently ended fiscal
year. These and other risk factors are representative of the risk factors that may emerge and could cause a difference between an ultimate actual outcome and a forward-
looking statement.
3
2Q16 Proforma
Total Assets $3.6 billion $4.1 billion
Total Loans $2.3 billion $2.8 billion
Total Deposits $2.9 billion $3.3 billion
Total Equity $553 million
TCE Ratio 14.3%
Dividend Yield 2.75%
Market Cap $751 million
Key Metrics
State Bank Financial Corporation Profile
Atlanta
Macon
Warner
Robins
Augusta
Savannah
Athens
Gainesville l STBZ
l NBG
l S Bank
Headquartered in Atlanta, Georgia
After closing two pending deals, State Bank
will have a footprint in 7 of the 8 largest
MSAs in Georgia, including:
31 full-service banking offices
8 mortgage origination offices
1
1 Proforma for pending acquisitions of NBG Bancorp, Inc. and S Bankshares, Inc.
STBZ Profile
4
Investment Thesis
Management team with a 30+ year track record in Georgia of successful
acquisitions / integrations and building long-term shareholder value
Strong historical growth in core deposits and organic loans
Excellent credit metrics with minimal levels of NPAs, NCOs, and past due loans
Asset-sensitive balance sheet
Robust capital levels to support growth and opportunistic transactions
Attractive dividend yield and payout ratio
Concentrated branch footprint in high-quality metro markets
Well-positioned acquirer as one of only three publicly traded banks
headquartered in Georgia with $2 billion to $5 billion in assets
5
Acquisition History
July 2009 – October 2011
12 FDIC-assisted acquisitions
Total Assets: $3.9 billion
Total Deposits: $3.6 billion
January 2015
First Bank of Georgia
Assets: $527 million
Deposits: $418 million
Announced April 2016
National Bank of Georgia
Assets: $417 million
Deposits: $322 million
February 2015
Boyett Insurance
Agency
October 2012
Altera Payroll
Services
October 2014
Bank of Atlanta
Assets: $186 million
Deposits: $149 million
October 2015
Patriot Capital
Equipment Finance
Announced May 2016
S Bank
Assets: $109 million
Deposits: $91 million
$4.1 billion
proforma assets
Prior to July 2009 Change of Control
$35 million in assets
2 Branches in Middle Georgia
2009 - 2011 2012 - 2014 2015 2016
Note: National Bank of Georgia, S Bank, and proforma metrics as of June 30, 2016
6
Strong Core Deposit Base with
Significant Opportunity for Growth
Source: SNL Financial; FDIC deposit data as of 6/30/15
Middle Georgia
Average deposits per branch of
$111mm is more than twice the
average competitor deposits per
branch
Maintained #1 market share
since 2005 (including
predecessor bank)
Atlanta
Average deposits per branch of
$185mm is well above average
competitor deposits per branch
Less than 1% market share of
$143 billion in deposits presents
tremendous growth opportunity
Over 75% of the market is
dominated by large regional
and national competitors
Augusta
Represents State Bank’s newest
market, entered in January 2015
Second largest MSA in Georgia
by population and deposits
5.5% market share ranks second
among Georgia-based banks
4th highest deposit market share in state of Georgia among Georgia-based banks
$1.1 billion in deposits in Atlanta market presents continued opportunity for significant growth
($ in 000)
MSA Deposits
Deposits /
Branch
# of
Branches
Market
Share %
Branch
Share % Deposits
Deposits /
Branch
# of
Branches
Atlanta $1,111,408 $185,235 6 0.8% 0.5% $143,394,524 $112,466 1,275
Macon / Warner Robins $1,224,832 $111,348 11 25.1% 12.1% $4,887,334 $53,707 91
Augusta $432,550 $61,793 7 5.5% 5.5% $7,920,814 $61,881 128
STBZ Total MSA
7
Core Franchise Transformation
Strong historical organic loan
growth while maintaining
exceptional credit quality
Interest income (excluding
accretion) grew at a 21%
compound annual rate from
2011 to 2015
Noninterest income in 2015
increased 138% from 2014
($ i
n
m
m
)
0
500
1,000
1,500
2,000
2,500
2010 2011 2012 2013 2014 2015 2Q16
Total Loan Portfolio
Organic & Purchased Non-Credit Impaired Purchased Credit Impaired
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2011 2012 2013 2014 2015
Interest Income and Accretion
Interest Income Accretion
($ i
n
000
s)
($ i
n
000
s)
1 Excludes (amortization)/accretion of FDIC receivable and gain on acquisitions
0
10,000
20,000
30,000
40,000
2011 2012 2013 2014 2015
Noninterest Income
1
8
Grow Commercial
Relationships by
Targeting Net
Funding Segments
Scale Efficient
Asset-generating
Lines of Business
Foster a Culture
of Efficiency
Maintain Focus on
Noninterest Income
Strategic Outlook
Management Depth
Disciplined and
Experienced Acquirer
Balance Sheet Strength
Strong Credit Quality
Metrics
Shareholder Focused
Management Team with
Significant Insider
Ownership
Solid Foundation Built on
Proven Performance
Forward Vision
9
Building Long-Term Earnings Power
Strategy for Achievement
Enhancing the organization for
sustainable long-term earnings
growth through scalable fee
and asset-generating lines of
business
Funding and supporting these
lines of business through
relationship-based core
deposit growth
Continuing to provide
meaningful value-added
services to our clients
Commercial & Community Banking
Relationship-based funding and lending
Fee Income Drivers
Mortgage, SBA, Payroll
Efficient Asset
Generation
CRE, Patriot, Specialty Finance
Target
ROTCE
10% – 12%
10
Diversified Lines of Business
Commercial &
Community Banking
Core Bank Funding Engine
Atlanta, Augusta,
Middle Georgia
Mortgage
Scalable retail and wholesale
mortgage platform located
throughout the bank’s
branches and mortgage
offices across the state
Patriot Capital
Leading supplier of
equipment financing for
petroleum industry
since 2000
SBA Lending
SBA Preferred Lender;
recent SBA team addition
expands geographic reach
and lending verticals
Specialty Finance
Provides portfolio diversity
through purchased pools
of loans and leases
Payroll / Insurance
Consolidated service offering of
payroll, benefits, HRIS, tax, and
insurance products targeting
small and middle market
businesses
Commercial Real Estate
Highly efficient asset-generating
line of business and a core
competency of State Bank
Homebuilder Finance
Efficient team with significant
relationships in Georgia
residential homebuilder markets
11
2Q 2016 Financial Results
12
Income Statement Highlights
(dollars in thousands, except per share data) 2Q16 1Q16 2Q15
Interest income on loans $25,406 $24,342 $23,070
Accretion income on loans 13,961 9,743 8,365
Interest income on invested funds 4,726 4,673 4,032
Total interest income 44,093 38,758 35,467
Interest expense 2,371 2,113 1,972
Net interest income 41,722 36,645 33,495
Provision for loan and lease losses 6 (134) 64
Net interest income after provision for loan losses 41,716 36,779 33,431
Noninterest income 10,230 9,391 9,319
Amortization of FDIC receivable - - (15,040)
Total noninterest expense 30,674 28,898 31,357
Income before income taxes 21,272 17,272 (3,647)
Income tax expense 7,433 6,434 (1,626)
Net income (loss) available to common shareholders $13,839 $10,838 ($2,021)
Diluted net income (loss) per share .37 .29 (.06)
Dividends per share .14 .14 .06
Tangible book value per share 13.77 13.49 13.51
Balance Sheet Highlights (period-end)
Total loans $2,345,096 $2,258,533 $2,042,186
Organic 2,004,858 1,895,340 1,524,286
Purchased non-credit impaired 205,705 223,398 340,539
Purchased credit impaired 134,533 139,795 177,361
Total assets 3,586,503 3,532,971 3,300,308
Noninterest-bearing deposits 829,673 891,511 762,100
Total deposits 2,885,490 2,905,598 2,736,285
Shareholders’ equity 553,356 545,855 522,984
2Q16 Results Summary
1 Denotes a non-GAAP financial measure; for more information, refer to Table 8 of the 2Q16 earnings press release
Note: Consolidated financial results contained throughout this presentation are unaudited; numbers may not add due to rounding
2Q16 net income of $13.8
million, or $.37 per diluted
share
Interest income on loans and
invested funds up 4% in the
quarter and 11% from 2Q15
Noninterest income increased
9% versus the prior quarter
and 10% compared to the
prior year period
Announced two bank
acquisitions that will add
three attractive MSAs to
our footprint
$.14 quarterly dividend
represents an attractive 2.8%
yield at end of 2Q16 and 42%
payout ratio in the first half of
2016
1
13
Enhancing Fundamental Performance
Interest
Income
Noninterest
Income
Core Deposit
Funding
Noninterest income of $10.2mm was up 10% compared to 2Q15
Record quarter for mortgage and 2nd highest quarter for SBA
Payroll income increased 16% year-over-year
Average noninterest-bearing deposits represent 30% of average total deposits
Cost of funds remains low at 33 bps
Noninterest expense increased due to new hires in revenue-producing lines of
business and higher production commissions in 2Q16
Burden ratio1 was 2.30% in the first half of 2016, down from 2.54% in the first
half of 2015
Efficiency
Interest income on loans and invested funds increased $1.1mm (+4%) from
1Q16 and $3.0mm (+11%) from 2Q15
Total loans were up $87mm from the previous quarter
1 Ratio defined as annualized noninterest expense minus annualized noninterest income, excluding (amortization)/accretion of FDIC receivable, divided by average assets
14
Strong Revenue Trends – Interest Income
Continue to replace accretion income
with interest income from organic
and purchased non-credit impaired
portfolios
Total interest income (excluding
accretion) of $30.1mm in 2Q16
compared to $27.1mm in 2Q15 and
$17.9mm in 2Q14
($ i
n
000
s)
Net interest margin significantly
impacted by quarterly accretion
volatility
Net interest margin excluding
accretion has improved year-over-
year to 3.53% at 2Q16
5,000
10,000
15,000
20,000
25,000
30,000
35,000
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
Interest Income and Accretion
Interest Income Accretion
7.38%
5.08%
3.11% 3.53%
2%
3%
4%
5%
6%
7%
8%
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
Net Interest Margin
NIM NIM excluding Accretion
15
Payroll fee income increased 16% year-over-year as
number of clients increased 9% year-over-year
Strong Revenue Trends – Noninterest Income
2Q16 mortgage production of $143mm, leading to a 17%
quarterly increase in fee income
SBA production increased to $28.6mm in 2Q16, a 39%
increase from 1Q16 and 113% increase from 2Q15
Total 2Q16 noninterest income of $10.2mm
0
2,000
4,000
6,000
8,000
10,000
12,000
2Q15 3Q15 4Q15 1Q16 2Q16
Service Charge Other Mortgage Payroll SBA
($ i
n
000
s)
0
50
100
150
200
0
1,000
2,000
3,000
4,000
2Q15 3Q15 4Q15 1Q16 2Q16
Pr
o
d
u
cti
o
n
($
in
m
m
)
N
o
n
in
ter
es
t
In
com
e
($ i
n
000
s)
Income Production
1,000
1,050
1,100
1,150
1,200
0
250
500
750
1,000
1,250
1,500
2Q15 3Q15 4Q15 1Q16 2Q16
# o
f C
lien
ts
N
o
n
in
ter
es
t
In
com
e
($ i
n
000
s)
Income Number of Clients
0
5
10
15
20
25
30
35
0
500
1,000
1,500
2,000
2Q15 3Q15 4Q15 1Q16 2Q16
Pr
o
d
u
cti
o
n
($
in
m
m
)
N
o
n
in
ter
es
t
In
com
e
($ i
n
000
s)
Income Production
16
($ in mm)
Loan Composition 2012 2013 2014 2015 2Q16
Construction, land & land development $230 $251 $313 $501 $482
Other commercial real estate 458 550 636 736 814
Residential real estate 43 67 135 210 200
Owner-occupied real estate 172 175 212 281 294
C&I and Leases 74 71 123 267 384
Consumer 8 9 9 21 36
Total Organic & PNCI Loans 986 1,123 1,428 2,015 2,211
PCI Loans 475 257 206 146 135
Total Loans $1,460 $1,381 $1,635 $2,160 $2,345
Solid Loan Growth
To
ta
l L
o
an
s
($
in
m
m
)
1 New loan fundings include new loans funded and net loan advances on existing commitments
0
125
250
375
500
500
1,000
1,500
2,000
2,500
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
Total Loan Portfolio
Organic PNCI PCI New Loan Fundings Organic Net Loan Growth
1
Organic and PNCI loans
increased $92mm in the
quarter and $346mm year-
over-year to end 2Q16 at
$2.2B
Strong quarter of new loan
originations with diverse
growth across the portfolio
Fu
n
d
in
gs /
G
ro
w
th
($
in
m
m
)
17
Loan Portfolio and CRE Composition
1 Organic and PNCI loans as of June 30, 2016
Commercial Real Estate Composition
Significant industry, client, source of
repayment, and geographic diversity in
the CRE portfolio
Construction, land & land development
(AD&C) comprises both commercial and
residential construction, which make up
15% and 12%, respectively, of total CRE
CRE
37%
AD&C
22%
SFR
9%
OORE
13%
C&I
13%
Leases
4%
Consumer
2%
Loan Portfolio
1
($ in mm) Organic PNCI Total % of Total CRE
CRE
Retail $188 $22 $210 16%
Office 141 7 148 11%
Multifamily 125 9 134 10%
Hospitality 117 6 122 9%
Industrial 66 8 74 6%
Sr. Housing 23 4 26 2%
Farmland 24 - 24 2%
Mini Storage 15 7 22 2%
Restaurant 20 1 20 2%
C-Store 18 0 19 1%
Other 12 1 14 1%
Total $749 $65 $814 63%
Construction, Land & Land Development
Commercial Construction $191 - $191 15%
Residential Construction 156 - 156 12%
Land & Development 124 $11 135 10%
Total $471 $11 $482 37%
Total Commercial Real Estate $1,220 $76 $1,296
18
Core Deposit Funding
($ i
n
m
m
)
N
IB
/ Tot
al D
ep
o
sit
s
Attractive, low-cost core deposit mix focused on transaction-based funding
($ in mm)
Deposit Composition 2012 % 2013 % 2014 % 2015 % 2Q16 %
Noninterest-bearing 342 16% 413 20% 490 23% 758 27% 848 30%
Interest-bearing transaction 318 15% 336 16% 386 18% 519 19% 531 18%
Savings & MMA 1,030 48% 928 44% 911 42% 1,060 38% 1,052 37%
CDs 476 22% 431 20% 380 18% 437 16% 441 15%
Total Deposits $2,166 $2,107 $2,166 $2,773 $2,873
10%
15%
20%
25%
30%
35%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2012 2013 2014 2015 2Q16
Deposit Mix
NIB IB Transaction Savings & MMA CDs NIB / Total Deposits
Note: Average deposit balances