Exhibit 99.1
FOR IMMEDIATE RELEASE
April 23, 2007
WINTER HAVEN, FL. – April 23, 2007 — CenterState Banks of Florida, Inc. (NASDAQ SYMBOL: CSFL) reported net income for the first quarter 2007 of $1,808,000 compared to $1,810,000 earned in the first quarter of 2006. Earnings per share for the current quarter was $0.16, down $0.01, compared to $0.17 for the same quarter last year. All per share data is presented herein on a diluted basis, unless otherwise stated. Quarterly condensed consolidated income statements (unaudited) are shown below for the periods indicated.
Quarterly Condensed Consolidated Income Statements (unaudited) Amounts in thousands of dollars (except per share data) | ||||||||||||||||||||
For the quarter ended: | 3/31/07 | 12/31/06 | 9/30/06 | 6/30/06 | 3/31/06 | |||||||||||||||
Net interest income | $ | 9,598 | $ | 9,622 | $ | 9,636 | $ | 9,581 | $ | 8,264 | ||||||||||
Provision for loan losses | (282 | ) | (142 | ) | (129 | ) | (206 | ) | (240 | ) | ||||||||||
Net interest income after loan loss provision | 9,316 | 9,480 | 9,507 | 9,375 | 8,024 | |||||||||||||||
Non interest income | 1,540 | 1,584 | 1,550 | 1,507 | 1,495 | |||||||||||||||
Non interest expense | (8,073 | ) | (7,854 | ) | (7,463 | ) | (7,297 | ) | (6,590 | ) | ||||||||||
Income before income tax | 2,783 | 3,210 | 3,594 | 3,585 | 2,929 | |||||||||||||||
Income tax expense | (975 | ) | (1,019 | ) | (1,343 | ) | (1,378 | ) | (1,119 | ) | ||||||||||
NET INCOME | $ | 1,808 | $ | 2,191 | $ | 2,251 | $ | 2,207 | $ | 1,810 | ||||||||||
EPS (basic) | $ | 0.16 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.17 | ||||||||||
EPS (diluted) | $ | 0.16 | $ | 0.19 | $ | 0.20 | $ | 0.19 | $ | 0.17 |
Acquisition of Valrico Bancorp, Inc.
On April 2, 2007, the Company acquired Valrico Bancorp, Inc. (“VBI”) and it’s wholly owned subsidiary Valrico State Bank, as previously announced. The $36.1 million purchase price was a combination of 65% stock and 35% cash. VBI is a one bank holding company operating through its subsidiary, Valrico State Bank (the “Bank”). The Bank opened for business in 1989 and operates through four banking locations in Hillsborough County, Florida. At December 31, 2006, VBI reported total consolidated assets of approximately $149.5 million, loans of $124.0 million, deposits of $119.7 million and stockholders’ equity of $15.9 million. VBI also reported consolidated net income of $1.9 million for the year ended December 31, 2006. The Company intends to operate the Bank as a separate wholly owned subsidiary, similar to the Company’s other subsidiary banks.
Branch activity
During February, the Company opened its 31st banking location with the newly constructed branch office in Osceola County. At the end of October 2006, the Company opened a newly constructed branch office in Polk County. Also, two new branch offices were opened in September and October 2006, in temporary locations while their permanent facilities are being constructed.
With the April 2nd acquisition of Valrico, the number of banking locations increased from 31 in eight Counties to 35 in nine Counties in central Florida. In addition, Valrico has a new branch under construction that is near completion and expected to open during the second quarter of 2007, at which time will increase the Company’s total banking locations to 36. Five of these offices will be less than one year old.
4
Financial highlights
At March 31, 2007 total loans were $684,141,000, which is an increase of $26,178,000, or 4% compared to December 31, 2006.
At March 31, 2007 total deposits were $889,638,000, which is a decrease of $3,168,000, or 0.35% compared to December 31, 2006.
Net interest margin (“NIM”) for the current quarter was 4.09%, which was the same as the previous quarter. The Company is focused on the goal of growing deposits without additional NIM compression. Management has implemented incentive and other marketing plans focusing on checking account and other non time deposit account growth, which contributed to the higher marketing expenses in the first quarter of this year and last quarter of last year compared to prior quarters.
Annualized return on average assets was 0.69% for the current quarter compared to 0.84% for the same quarter last year. Presented below are condensed consolidated balance sheets, condensed consolidated average balance sheets, and selected financial ratios for the periods indicated.
Condensed Consolidated Balance Sheets (unaudited) Amounts in thousands of dollars | ||||||||||||||||||||
At quarter ended: | 3/31/2007 | 12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | |||||||||||||||
Cash and due from banks | $ | 41,433 | $ | 40,385 | $ | 35,345 | $ | 36,625 | $ | 35,165 | ||||||||||
Fed funds and money market | 58,821 | 79,636 | 48,250 | 80,285 | 91,294 | |||||||||||||||
Investments | 236,492 | 235,350 | 240,286 | 229,428 | 219,938 | |||||||||||||||
Loans | 684,141 | 657,963 | 637,684 | 621,638 | 599,884 | |||||||||||||||
Allowance for loan losses | (7,632 | ) | (7,355 | ) | (7,367 | ) | (7,310 | ) | (7,095 | ) | ||||||||||
Premises and equipment, net | 41,531 | 39,879 | 38,748 | 36,996 | 34,859 | |||||||||||||||
Goodwill | 9,863 | 9,863 | 9,863 | 9,863 | 10,080 | |||||||||||||||
Core deposit intangible | 2,944 | 3,083 | 3,249 | 3,414 | 3,580 | |||||||||||||||
Bank owned life insurance | 7,394 | 7,320 | 7,246 | 6,172 | 6,108 | |||||||||||||||
Other assets | 11,831 | 10,978 | 11,386 | 11,519 | 10,900 | |||||||||||||||
TOTAL ASSETS | $ | 1,086,818 | $ | 1,077,102 | $ | 1,024,690 | $ | 1,028,630 | $ | 1,004,713 | ||||||||||
Deposits | $ | 889,638 | $ | 892,806 | $ | 845,849 | $ | 855,031 | $ | 829,667 | ||||||||||
Other borrowings | 73,536 | 62,792 | 59,605 | 58,595 | 56,973 | |||||||||||||||
Other liabilities | 3,928 | 4,172 | 4,424 | 3,932 | 8,146 | |||||||||||||||
Stockholders’ equity | 119,716 | 117,332 | 114,812 | 111,072 | 109,927 | |||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,086,818 | $ | 1,077,102 | $ | 1,024,690 | $ | 1,028,630 | $ | 1,004,713 | ||||||||||
5
Condensed Consolidated Average Balance Sheets (unaudited) Amounts in thousands of dollars | ||||||||||||||||||||
At quarter ended: | 3/31/07 | 12/31/06 | 9/30/06 | 6/30/06 | 3/31/06 | |||||||||||||||
Investments, fed funds, and other | $ | 295,365 | $ | 299,467 | $ | 300,846 | $ | 287,099 | $ | 268,788 | ||||||||||
Loans | 669,005 | 645,103 | 632,568 | 611,379 | 531,895 | |||||||||||||||
Allowance for loan losses | (7,423 | ) | (7,398 | ) | (7,371 | ) | (7,226 | ) | (6,524 | ) | ||||||||||
All other assets | 104,594 | 100,502 | 97,844 | 99,470 | 80,120 | |||||||||||||||
TOTAL ASSETS | $ | 1,061,541 | $ | 1,037,674 | $ | 1,023,887 | $ | 990,722 | $ | 874,279 | ||||||||||
Deposits- interest bearing | $ | 673,561 | $ | 657,654 | $ | 654,009 | $ | 611,678 | $ | 519,587 | ||||||||||
Deposits- non interest bearing | 192,945 | 196,093 | 191,057 | 204,138 | 195,670 | |||||||||||||||
Other borrowings | 72,582 | 62,399 | 60,486 | 59,413 | 57,022 | |||||||||||||||
Other liabilities | 3,695 | 4,989 | 4,825 | 4,726 | 3,640 | |||||||||||||||
Stockholders’ equity | 118,758 | 116,539 | 113,510 | 110,767 | 98,360 | |||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,061,541 | $ | 1,037,674 | $ | 1,023,887 | $ | 990,722 | $ | 874,279 | ||||||||||
Selected financial ratios (unaudited) | ||||||||||||||||||||
As of or for the quarter ended: | 3/31/07 | 12/31/06 | 9/30/06 | 6/30/06 | 3/31/06 | |||||||||||||||
Return on average assets | 0.69 | % | 0.84 | % | 0.87 | % | 0.89 | % | 0.84 | % | ||||||||||
Return on average equity | 6.17 | % | 7.46 | % | 7.87 | % | 7.99 | % | 7.46 | % | ||||||||||
Net interest margin (tax equivalent basis) | 4.09 | % | 4.09 | % | 4.12 | % | 4.29 | % | 4.20 | % | ||||||||||
Loan / deposit ratio | 76.9 | % | 73.7 | % | 75.4 | % | 72.7 | % | 72.3 | % | ||||||||||
Stockholders’ equity / total assets | 11.0 | % | 10.9 | % | 11.2 | % | 10.8 | % | 10.9 | % | ||||||||||
Efficiency ratio | 72 | % | 70 | % | 67 | % | 66 | % | 68 | % | ||||||||||
Book value per share | $ | 10.71 | $ | 10.54 | $ | 10.32 | $ | 10.00 | $ | 9.91 |
The Company’s credit quality remains good. Net charge-offs for the three month period ending March 31, 2007 were $5,000. Nonperforming assets (which the Company defines as (1) non-accrual loans; (2) accruing loans that are 90 days or more delinquent and are deemed by management to be adequately secured and in the process of collection; (3) OREO (i.e. real estate acquired through foreclosure or deed in lieu of foreclosure); and (4) other repossessed assets that is not real estate), was $1,475,000 at March 31, 2007, compared to $645,000 at December 31, 2006. Non performing assets as a percentage of total assets was 0.14% at March 31, 2007, compared to 0.06% at December 31, 2006.
The Company defines non performing loans as non accrual loans plus loans past due 90 days or more and still accruing interest. Non performing loans as a percentage of total loans was 0.18% at March 31, 2007, compared to 0.09% at December 31, 2006. The ratio of allowance for loan losses to non performing loans was 606% at March 31, 2007, compared to 1,206% at December 31, 2006.
The allowance for loan losses (“ALLL”) as a percentage of total loans outstanding was 1.12% at March 31, 2007 and at December 31, 2006. The Company’s ALLL increased $277,000 during this three month period. Of this amount, $199,000 relates to an increase in the Company’s general reserve, which is due to the growth in the loan portfolio. The remaining $78,000 increase is due to an increase in the Company’s specific reserves, which results from specific reserve analyses prepared for each of the Company’s impaired loans.
6
The table below summarizes selected credit quality data for the periods indicated.
Selected credit quality ratios, dollars are in thousands (unaudited) | ||||||||||||||||||||
As of or for the quarter ended: | 3/31/07 | 12/31/06 | 9/30/06 | 6/30/06 | 3/31/06 | |||||||||||||||
Non-accrual loans | $ | 1,196 | $ | 448 | $ | 696 | $ | 850 | $ | 647 | ||||||||||
Past due loans 90 days or more And still accruing interest | 64 | 162 | 458 | 1 | 551 | |||||||||||||||
Total non performing loans | 1,260 | 610 | 1,154 | 851 | 1,198 | |||||||||||||||
Other real estate owned (“OREO”) | 215 | — | — | — | — | |||||||||||||||
Repossessed assets other than real estate | — | 35 | 35 | 50 | 65 | |||||||||||||||
Total non performing assets | $ | 1,475 | $ | 645 | $ | 1,189 | $ | 901 | $ | 1,263 | ||||||||||
Non performing assets as a percentage of total assets | 0.14 | % | 0.06 | % | 0.12 | % | 0.09 | % | 0.13 | % | ||||||||||
Non performing loans as a percentage of total loans | 0.18 | % | 0.09 | % | 0.18 | % | 0.14 | % | 0.20 | % | ||||||||||
Net charge-offs (recoveries) | $ | 5 | $ | 154 | $ | 72 | ($ | 9 | ) | $ | 283 | |||||||||
Net charge-offs as a percentage of average loans for the period | 0.00 | % | 0.02 | % | 0.01 | % | 0.00 | % | 0.05 | % | ||||||||||
Allowance for loan losses as a percentage of period end loans | 1.12 | % | 1.12 | % | 1.16 | % | 1.18 | % | 1.18 | % |
Loan growth and deposit growth over the previous twelve months were 14% and 7% respectively. The Company does not use broker deposits nor does it solicit deposits nationally. All deposits, as well as loans, are generated from its local markets in central Florida. The tables below summarize the loan and deposit mix over the most recent five quarter ends.
Loan mix (in thousands of dollars) | ||||||||||||||||||||
At quarter ended: | 3/31/07 | 12/31/06 | 9/30/06 | 6/30/06 | 3/31/06 | |||||||||||||||
Real estate loans | ||||||||||||||||||||
Residential | $ | 185,820 | $ | 180,869 | $ | 181,579 | $ | 173,011 | $ | 172,895 | ||||||||||
Commercial | 296,788 | 291,536 | 277,888 | 267,834 | 256,598 | |||||||||||||||
Construction, development and land loans | 68,543 | 60,950 | 56,112 | 60,289 | 51,304 | |||||||||||||||
Total real estate loans | 551,151 | 533,355 | 515,579 | 501,134 | 480,797 | |||||||||||||||
Commercial | 76,558 | 68,948 | 67,642 | 64,978 | 65,173 | |||||||||||||||
Consumer and other loans | 57,418 | 56,684 | 55,489 | 56,567 | 54,917 | |||||||||||||||
Total loans before unearned fees and costs | 685,127 | 658,987 | 638,710 | 622,679 | 600,887 | |||||||||||||||
Unearned fees and costs | (986 | ) | (1,024 | ) | (1,026 | ) | (1,041 | ) | (1,003 | ) | ||||||||||
Total loans | $ | 684,141 | $ | 657,963 | $ | 637,684 | $ | 621,638 | $ | 599,884 |
Deposit mix (in thousands of dollars) | |||||||||||||||
At quarter ended: | 3/31/07 | 12/31/06 | 9/30/06 | 6/30/06 | 3/31/06 | ||||||||||
Checking accounts | |||||||||||||||
Non interest bearing | $ | 202,840 | $ | 223,602 | $ | 198,386 | $ | 207,804 | $ | 220,541 | |||||
Interest bearing | 114,636 | 110,627 | 97,060 | 107,035 | 123,214 | ||||||||||
Savings deposits | 44,462 | 46,806 | 47,562 | 48,471 | 45,899 | ||||||||||
Money market accounts | 117,322 | 100,528 | 102,114 | 111,445 | 107,449 | ||||||||||
Time deposits | 410,378 | 411,243 | 400,727 | 380,276 | 332,564 | ||||||||||
Total deposits | $ | 889,638 | $ | 892,806 | $ | 845,849 | $ | 855,031 | $ | 829,667 |
7
Non interest income and non interest expense
The tables below summarize the Company’s non interest income and non interest expense for the periods indicated.
Quarterly Condensed Consolidated Non Interest Income (unaudited) Amounts in thousands of dollars | ||||||||||||||||||||
For the quarter ended: | 3/31/07 | 12/31/06 | 9/30/06 | 6/30/06 | 3/31/06 | |||||||||||||||
Service charges on deposit accounts | $ | 953 | $ | 876 | $ | 902 | $ | 875 | $ | 748 | ||||||||||
Commissions from mortgage broker activities | 52 | 71 | 79 | 106 | 85 | |||||||||||||||
Loan related fees | 75 | 91 | 70 | 75 | 79 | |||||||||||||||
Commissions from sale of mutual funds and annuities | 80 | 202 | 142 | 81 | 270 | |||||||||||||||
Rental income | 55 | 50 | 53 | 50 | 50 | |||||||||||||||
Debit card and ATM fees | 188 | 176 | 138 | 141 | 137 | |||||||||||||||
BOLI income | 74 | 75 | 74 | 63 | 65 | |||||||||||||||
Gain (loss) on sale of investments | — | — | — | 17 | — | |||||||||||||||
Other service charges and fees | 63 | 43 | 92 | 99 | 61 | |||||||||||||||
Total non interest income | $ | 1,540 | $ | 1,584 | $ | 1,550 | $ | 1,507 | $ | 1,495 | ||||||||||
Quarterly Condensed Consolidated Non Interest Expense (unaudited) Amounts in thousands of dollars | ||||||||||||||||||||
For the quarter ended: | 3/31/07 | 12/31/06 | 9/30/06 | 6/30/06 | 3/31/06 | |||||||||||||||
Employee salaries and wages | $ | 3,243 | $ | 3,200 | $ | 3,116 | $ | 3,000 | $ | 2,748 | ||||||||||
Employee incentive/bonus compensation | 513 | 586 | 515 | 523 | 438 | |||||||||||||||
Employee stock option expense | 135 | 136 | 147 | 181 | 130 | |||||||||||||||
Health insurance and other employee benefits | 542 | 537 | 432 | 419 | 372 | |||||||||||||||
Payroll taxes | 331 | 210 | 214 | 220 | 289 | |||||||||||||||
Other employee related expenses | 170 | 189 | 159 | 149 | 147 | |||||||||||||||
Incremental direct cost of loan origination | (279 | ) | (276 | ) | (248 | ) | (324 | ) | (248 | ) | ||||||||||
Total salaries, wages and employee benefits | $ | 4,655 | $ | 4,582 | $ | 4,335 | $ | 4,168 | $ | 3,876 | ||||||||||
Occupancy expense | 914 | 912 | 907 | 856 | 768 | |||||||||||||||
Depreciation of premises and equipment | 504 | 497 | 484 | 498 | 456 | |||||||||||||||
Supplies, stationary and printing | 146 | 146 | 141 | 174 | 146 | |||||||||||||||
Marketing expenses | 287 | 249 | 98 | 106 | 132 | |||||||||||||||
Data processing expenses | 280 | 280 | 300 | 273 | 252 | |||||||||||||||
Legal, auditing and other professional fees | 196 | 187 | 190 | 165 | 131 | |||||||||||||||
Bank regulatory related expenses | 98 | 93 | 96 | 79 | 58 | |||||||||||||||
Postage and delivery | 68 | 65 | 66 | 66 | 79 | |||||||||||||||
ATM related expenses | 103 | 94 | 110 | 114 | 116 | |||||||||||||||
Amortization of CDI | 139 | 166 | 165 | 166 | 17 | |||||||||||||||
Other expenses | 683 | 583 | 571 | 632 | 559 | |||||||||||||||
Total non interest expense | $ | 8,073 | $ | 7,854 | $ | 7,463 | $ | 7,297 | $ | 6,590 |
CenterState Banks of Florida, Inc. is a multi bank holding company which operates through four wholly owned subsidiary banks with 31 locations in eight counties throughout Central Florida. Effective with the April 2, 2007 acquisition of Valrico, the Company is now operating through five wholly owned subsidiary banks with 35 locations in nine counties throughout central Florida. The Company’s stock is listed on the NASDAQ national market under the symbol CSFL. Request for information regarding the purchase or sale of the common stock can be obtained from James Stevens, at Keefe, Bruyette & Woods (800-221-3246), Chris Cerniglia, at Ryan Beck & Co (800-793-7226), Michael Acampora, at Raymond James (800-363-9652), or Eric Lawless, at FIG Partners, LLC (866-344-2657). For additional information contact Ernest S. Pinner, CEO, or James J. Antal, CFO, at 863-293-2600.
8
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Some of the statements in this report constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. These statements related to future events, other future financial performance or business strategies, and may be identified by terminology such as “may,” “will,” “should,” “expects,” “scheduled,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “potential,” or “continue” or the negative of such terms or other comparable terminology. Actual events or results may differ materially. In evaluating these statements, you should specifically consider the factors described throughout this report. We cannot be assured that future results, levels of activity, performance or goals will be achieved.
9