State Bank Financial's (STBZ) second-quarter earnings nearly doubled what it reported a quarter earlier as the serial acquirer's organic growth outpaced growth from acquisitions.
The Atlanta company's net income rose 29% from a year earlier, to $11 million. The company earned $5.7 million in the first quarter. State Bank said Monday that improved results came from lower expenses and $9 million in net loan growth from a quarter earlier.
More than half of the $2.7 billion-asset company's loan growth came from its own originations rather than covered loans from failed bank acquisitions. Since 2009, State Bank has bought 12 failed banks through the Federal Deposit Insurance Corp.
Accounting associated with FDIC loss-sharing agreements also padded the bottom line, Joe Evans, the company's chairman and chief executive, said in a press release. Net interest income rose 31% from a quarter earlier, to $46.4 million.
The company said that improvement among the assets from failed bank deals will eventually create negative net interest income due to amortizing the indemnification asset. The amortization was a negative $4 million in the second quarter, compared to $7 million a quarter earlier. Overall, State Bank had a negative $1.2 million in noninterest income. But the company anticipates improvement in the long term.
