1 NASDAQ: CSFL May 2006 Exhibit 99.1 |
2 Forward Looking Statement This presentation contains forward-looking statements, as defined by Federal Securities Laws, relating to present or future trends or factors affecting the operations, markets and products of CenterState Banks of Florida, Inc. (CSFL). These statements are provided to assist in the understanding of future financial performance. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of factors that may cause such forward- looking statements to differ materially from actual results, please refer to CSFL’s most recent Form 10-Q filed with the Securities Exchange Commission. CSFL undertakes no obligation to release revisions to these forward- looking statements or reflect events or circumstances after the date of this presentation. |
3 Franchise Overview |
4 Corporate Profile • Headquartered in Winter Haven, Florida • Nasdaq Symbol: CSFL • Company formed: June 2000 • 4-bank subsidiary holding company • 29 branch banking offices throughout growth markets in Central Florida • Strong balance sheet growth and earnings momentum • 1 st Qtr 2006 Highlights: ($ Millions) Assets: $1,004 Loans: 600 Deposits: 830 Equity: 110 |
5 Branch Footprint |
6 Experienced Management Team 62 39 16 Senior Vice President & COO George H. Carefoot 37 17 7 President & CEO, CenterState Bank of Florida John C. Corbett 46 26 14 President & CEO, CenterState Bank Mid Florida Timothy A. Pierson 31 29 42 23 42 Years in Banking 17 17 6 7 7 Years with CSFL* 51 President & CEO, CenterState Bank Central Florida Thomas E. White 51 President & CEO, CenterState Bank West Florida James S. Stalnaker, Jr. 54 Senior Vice President & CFO James J. Antal 60 Senior Vice President & Chief Internal Auditor J. Wayne Stewart 58 Chairman, President & CEO Ernest S. Pinner Age Title Name * Includes years with predecessor bank. |
7 Business Strategy • Emphasize relationship banking – We compete by providing our customers a level of customer service unmatched by our super-regional and national competitors • Maintain local decision making – We believe our decentralized business model increases our ability to foster local relationships and grow our customer base in each of our markets • Continue our disciplined execution – We believe our success depends on a disciplined approach to originating loans and gathering deposits – We do not sacrifice quality for growth • Develop a network of profitable banks in high-growth markets in Central Florida – We pursue growth through organic expansion, de novo branching and select acquisitions – Our markets are some of the fastest growing in Florida • Leverage our investment in our branch network – We have opened 9 new full service branches and 4 kiosk branches since 2000 – As these branches mature, we believe our efficiencies and wallet share will improve • Continue to take advantage of merger turmoil in Florida – Recent acquisitions include FFLC Bancorp, Inc., FloridaFirst Bancorp, Inc. and SouthTrust Corporation |
8 Recent Developments • Capital raise of $35 million of common equity • Announced acquisition of CenterState Bank Mid Florida (8/30/05) • Opened new branch – Crystal River • Purchased land for corporate headquarters / new branch – DeerCreek (construction to be completed in mid 2007) • Combination of two subsidiary banks into one charter – CenterState Bank of Florida – First National Bank of Polk County • Closed acquisition of CenterState Bank Mid Florida (3/31/06) • Passed the $1 billion dollar mark in assets • Announced 2-for-1 stock split (payable to shareholders of record as of May 8 th ) 2nd Qtr ’05 3rd Qtr ’05 1st Qtr ’06 4th Qtr ’05 2nd Qtr ’06 |
9 Strong Market Share Counties of Operation Osceola County - (Orlando MSA) # 4 in market share (7.4%) 2nd fastest growing county in Florida 2005 - 2010 population growth of 38.8% 4 branches Polk County - (Lakeland MSA) # 5 in market share (5.6%) 2005 - 2010 population growth of 11.5% 12 branches Sumter County - (The Villages MSA) # 5 in market share (7.3%) 5th fastest growing county in Florida 2005 - 2010 population growth of 26.2% 2 branches Pasco County - (Tampa MSA) #8 in market share (2.1%) 12th fastest growing county in Florida 2005 - 2010 population growth of 18.9% 3 branches Source: SNL Financial. Deposit data as of 6/30/05. Market share data for Citrus, Hernando, Lake, Osceola, Pasco, Polk and Sumter Counties, Florida. Excludes Orange County in which CSFL has $30 million in deposits. Deposits Market Rank Institution ($000s) Share Branches 1 SunTrust Banks Inc. (GA) 4,500,499 21.06 % 82 2 Bank of America Corp. (NC) 4,458,878 20.87 63 3 Wachovia Corp. (NC) 3,913,315 18.32 79 4 Colonial BancGroup Inc. (AL) 1,340,539 6.27 30 5 Centerstate Banks of Florida (FL) 720,839 3.37 27 6 AmSouth Bancorp. (AL) 700,908 3.28 27 7 Citrus & Chemical Bancorp. (FL) 656,025 3.07 10 8 BB&T Corp. (NC) 594,930 2.78 13 9 Villages Bancorp Inc. (FL) 570,836 2.67 7 10 Alabama National BanCorp. (AL) 457,946 2.14 10 |
10 Market Demographics • 5 of our 8 counties rank in the top 15 fastest growing counties in Florida 2005 - 2010 Projected Population Growth (%) CenterState Banks of Florida, Inc. 20.64 % Harbor Florida Bancshares, Inc. 16.65 Seacoast Banking Corporation of Florida 14.49 Fidelity Bankshares, Inc. 13.83 BankAtlantic Bancorp, Inc. 10.10 BankUnited Financial Corporation 9.76 Commercial Bankshares, Inc. 8.02 TIB Financial Corp. 7.99 Capital City Bank Group, Inc. 6.81 Florida 12.35 % Southeast 8.16 United States 6.26 2005 - 2010 Population Growth (%) Osceola 38.79 % Sumter 26.16 Lake 22.41 Pasco 18.86 Hernando 16.22 Orange 16.11 Citrus 12.57 Polk 11.52 CSFL Counties Source: SNL Financial. Population deposit weighted by county as of 6/30/05. Southeast includes AL, AR, FL, GA, KY, LA, MS, NC, SC, TN, VA and WV. |
11 Operating Results |
12 Solid Operating Results Quarterly Financial Performance & Condition ($ in thousands, except per share data) Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06 Operating Results: Net Interest Income $6,273 $6,817 $7,499 $7,955 $8,264 Net Interest Margin 3.58 % 3.75 % 3.88 % 4.10 % 4.13 % ROAA 0.66 0.72 0.86 0.87 0.83 ROAE 8.69 9.25 7.57 7.57 7.36 Efficiency 70 69 65 66 68 Diluted Earnings per Share 0.30 0.33 0.34 0.34 0.34 Balance Sheet Data: Assets $789,813 $830,042 $848,161 $871,521 $1,004,713 Loans 461,667 487,468 504,783 516,658 599,884 Deposits 680,506 686,553 696,121 717,337 829,667 Equity 58,165 90,443 96,439 97,241 109,927 Loans / Deposits 67.8 % 71.0 % 72.5 % 72.0 % 72.3 % Equity / Assets 7.4 10.9 11.4 11.2 10.9 Book Value per Share $14.27 $17.74 $18.37 $18.52 $19.81 |
13 Loan Portfolio • 80% of our portfolio is secured by real estate • 99% of commercial loans have personal guarantees • Our top ten relationships account for about 7% of loans • 53% variable rate versus 47% fixed rate ($ Millions) Consumer & Other Commercial Construction Real Estate Commercial Real Estate Residential Real Estate |
14 Credit Quality Net Charge – Offs / Avg Loans (%) & Reserves / Loans (%) NPAs / Assets (%) 0.19 0.30 0.27 0.17 0.18 0.13 0.00 0.15 0.30 0.45 0.60 2001 2002 2003 2004 2005 Q1 '06 0.10 0.13 0.12 0.07 0.05 0.05 1.22 1.17 1.18 1.26 1.26 1.29 0.00 0.35 0.70 1.05 1.40 2001 2002 2003 2004 2005 Q1 '06 NCOs / Avg Loans Reserves / Loans Nonperforming assets include assets 90 days or more past due. |
15 Deposit Composition • Approximately 27% of our deposits are interest free • 2001 – 2005 CAGR for non-interest bearing demand of 41% ($ Millions) Jumbo CDs Retail CDs Money market & savings accounts Demand - interest bearing Non-interest bearing deposits |
16 Low Cost Funding 1.84 1.67 1.56 1.39 1.28 1.26 1.26 1.17 1.23 2.03 1.85 1.70 1.51 1.37 1.32 1.30 1.19 1.25 0.00 0.60 1.20 1.80 2.40 Q1 '04 Q2 '04 Q3 '04 Q4 '04 Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06 Cost of Deposits Cost of Funds Fed Funds Rate (%) 4.75 4.25 3.75 3.25 2.75 2.25 1.75 1.25 1.00 0.00 0.85 1.70 2.55 3.40 4.25 5.10 Q1 '04 Q2 '04 Q3 '04 Q4 '04 Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06 Cost of Funds (%) |
17 Liquidity Loans / Deposits (%) 79 97 76 97 77 94 67 96 72 98 72 94 50 60 70 80 90 100 110 2001 2002 2003 2004 2005 Q1 '06 CSFL Peers Peer group includes BBX, BKUNA, CCBG, CLBK, FFFL, HARB, SBCF and TIBB. |
18 Margin Expansion & Net Interest Income Growth 6.27 6.82 7.50 7.96 8.26 6.00 6.50 7.00 7.50 8.00 8.50 Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06 Net Interest Income ($ Millions) 3.58 3.75 3.88 4.10 4.13 3.50 3.65 3.80 3.95 4.10 4.25 Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06 Net Interest Margin (%) • Since Q1 ’05, net interest margin has expanded 55 bps • Net interest income has increased 31.7% from Q1 ’05 |
19 Improving Efficiencies Efficiency Ratio (%) • On average, each new full service branch breaks even at $10 - $11 million in deposits Deposits per Branch ($ Millions) * Kiosk branches. 19.2 21.0 21.5 26.4 27.6 28.6 0.0 8.0 16.0 24.0 32.0 2001 2002 2003 2004 2005 Q1 '06 72 75 76 76 67 68 60 65 70 75 80 2001 2002 2003 2004 2005 Q1 '06 Branches Opened: 2 3 4* 2 1 0 |
20 Financial Performance Net Income ($ Millions) Earnings Per Share ($) Q1 ’06: • Net income increased 43% from Q1 ’05 • Earnings per share increased 13% from Q1 ’05 • Return on average assets: 0.83% • Return on average equity: 7.36% Annual Earnings Quarterly Earnings Gain on Sale of Branches 0.00 0.36 0.72 1.08 1.44 2001 2002 2003 2004 2005 Q1 '05 Q1 '06 0.34 1.14 0.77 0.82 0.89 0.84 1.31 0.30 0.00 1.75 3.50 5.25 7.00 2001 2002 2003 2004 2005 Q1 '05 Q1 '06 1.81 4.37 2.63 2.37 2.52 3.22 6.33 1.26 |
21 Investment Highlights |
22 Investment Highlights Market Capitalization (3/31/06): $204 million Institutional Ownership: 21 % Insider Ownership: 22 # of Registered Shareholders: 845 Free Float Shares: Approximately 4 million shares Price Performance S&P 500 Nasdaq Bank Time Horizon CSFL Index Index Year-to-Date 6.7 % 3.7 % 5.2 % 1-Year 8.4 9.7 9.1 3-Year 87.6 52.7 48.6 5-Year 183.1 11.6 71.9 As of March 31, 2006. |
23 Building Shareholder Value • Our shareholder value is built upon the quality of our employees, the quality of our assets and liabilities and the growth markets in which we operate • Our long-term vision is to be a multi-billion dollar Central Florida bank known as the preeminent community bank in our markets • We remain focused on disciplined credit underwriting and execution of our corporate strategy |
24 NASDAQ: CSFL May 2006 |