Exhibit 99.1
FOR IMMEDIATE RELEASE
April 24, 2009
CenterState Banks of Florida, Inc. Announces
First Quarter 2009 Operating Results
DAVENPORT, FL. – April 24, 2009 — CenterState Banks of Florida, Inc. (NASDAQ SYMBOL: CSFL) reported net income for the first quarter 2009 of $772,000 or $0.03 per share basic and diluted, compared to $1,111,000 or $0.09 per share basic and diluted for the same quarter of last year. Average interest earning assets increased by $385,924,000 between these two periods, which was more than enough to offset the corresponding 45bps decrease in net interest margin (“NIM”) resulting in a $1,678,000 increase in net interest income. Most of this increase was offset by an increase in the allowance for loan loss provision.
Non interest income increased significantly between 1Q09 and 1Q08 primarily due to commissions on bond sales and gain on sales of securities. This was offset by increases in non interest expense which was primarily due to increases in salaries and benefits, including compensation related expenses resulting primarily from the Company’s recently formed bond sales division, operating expenses related to the Company’s January 30th acquisition of Ocala banking offices from the FDIC, and increases in foreclosure and foreclosure related expenses.
Increases in the Company’s loan loss provision as well as increases in foreclosure and foreclosure related expenses was a reflection of the continued deterioration of the real estate market in Florida specifically and the overall economy in general. The growth in assets was primarily funded by: (1) the Company’s purchase of approximately $178,000,000 of deposits from the FDIC in Ocala; (2) correspondent bank deposits (i.e. federal funds purchased) acquired through the Company’s correspondent bank and bond sales division initiated late in 2008 (balances outstanding at the current quarter end approximated $210,000,000); and (3) internally generated deposit growth including several large deposit relationships with several local municipalities. Although loans have been growing steadily, the result of the rapid increase on the liability side of the Company’s balance sheet caused a shift in the mix of interest earning assets, which is the primary reason for the current compression in NIM. At March 31, 2008, total loans and total investments (includes federal funds sold) were 67% and 22% of total assets, respectively. At March 31, 2009, total loans and total investments were 50% and 40% of total assets, respectively.
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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: | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | 3/31/08 | |||||||||||||||
Net interest income | $ | 11,492 | $ | 10,065 | $ | 10,376 | $ | 10,030 | $ | 9,814 | ||||||||||
Provision for loan losses | (1,703 | ) | (2,637 | ) | (1,764 | ) | (1,515 | ) | (604 | ) | ||||||||||
Net interest income after loan loss provision | 9,789 | 7,428 | 8,612 | 8,515 | 9,210 | |||||||||||||||
Non interest income | 4,950 | 3,772 | 2,007 | 1,744 | 1,801 | |||||||||||||||
Sale of bank branch office real estate | — | — | — | 1,483 | — | |||||||||||||||
Non interest expense | (13,701 | ) | (11,356 | ) | (9,613 | ) | (9,560 | ) | (9,407 | ) | ||||||||||
Income (loss) before income tax | 1,038 | (156 | ) | 1,006 | 2,182 | 1,604 | ||||||||||||||
Income tax (expense) benefit | (266 | ) | 237 | (245 | ) | (714 | ) | (493 | ) | |||||||||||
NET INCOME | $ | 772 | $ | 81 | $ | 761 | $ | 1,468 | $ | 1,111 | ||||||||||
Net income (loss) available to common shareholders | $ | 376 | ($ | 86 | ) | $ | 761 | $ | 1,468 | $ | 1,111 | |||||||||
Earnings (loss) per share (basic) | $ | 0.03 | ($ | 0.01 | ) | $ | 0.06 | $ | 0.12 | $ | 0.09 | |||||||||
Earnings (loss) per share (diluted) | �� | $ | 0.03 | ($ | 0.01 | ) | $ | 0.06 | $ | 0.12 | $ | 0.09 | ||||||||
Average common shares outstanding (basic) | 12,475,432 | 12,464,933 | 12,454,407 | 12,447,484 | 12,442,517 | |||||||||||||||
Average common shares outstanding (diluted) | 12,575,424 | 12,617,383 | 12,590,330 | 12,572,067 | 12,581,714 | |||||||||||||||
Common shares outstanding at period end | 12,481,019 | 12,474,315 | 12,454,407 | 12,454,407 | 12,444,407 |
Selected financial ratios (unaudited) | ||||||||||||||||||||
As of or for the quarter ended: | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | 3/31/08 | |||||||||||||||
Return on average assets (annualized) | 0.19 | % | 0.03 | % | 0.25 | % | 0.48 | % | 0.36 | % | ||||||||||
Return on average equity (annualized) | 1.74 | % | 0.19 | % | 2.03 | % | 3.93 | % | 2.97 | % | ||||||||||
Net interest margin (tax equivalent basis) | 3.16 | % | 3.54 | % | 3.88 | % | 3.75 | % | 3.61 | % | ||||||||||
Loan / deposit ratio | 68.8 | % | 89.8 | % | 91.3 | % | 88.0 | % | 82.9 | % | ||||||||||
Stockholders’ equity (to total assets) | 10.0 | % | 13.4 | % | 12.1 | % | 12.2 | % | 12.0 | % | ||||||||||
Common tangible equity (to total tangible assets) | 6.6 | % | 9.2 | % | 9.7 | % | 9.8 | % | 9.7 | % | ||||||||||
Tier 1 capital (to average assets) | 9.5 | % | 12.6 | % | 11.1 | % | 10.9 | % | 10.7 | % | ||||||||||
Efficiency ratio | 83 | % | 82 | % | 78 | % | 81 | % | 81 | % | ||||||||||
Common equity per common share | $ | 12.33 | $ | 12.22 | $ | 11.96 | $ | 11.94 | $ | 12.05 | ||||||||||
Common tangible equity per common share | $ | 9.32 | $ | 9.64 | $ | 9.37 | $ | 9.33 | $ | 9.43 |
Ocala acquisition
On January 30, 2009 the Company, through its lead bank headquartered in Winter Haven, Florida, purchased the deposits of Ocala National Bank (“ONB”), from the Federal Deposit Insurance Corporation (“FDIC”) for approximately $3,000,000, a premium of approximately 1.7%. Total deposits purchased approximated $178,000,000. ONB, which was closed by the FDIC on Friday, January 30, 2009, operated from four bank locations of which two were leased and two were owned. Pursuant to the transaction, the Company has the option to purchase the two owned locations, plus all furniture and equipment at fair market value, to be determined by appraisal. It also has the option to assume the leases on the leased properties. The Company is in the process of valuing the intangible assets related to the transaction. It has tentatively recognized goodwill of approximately $5,259,000, and a core deposit intangible of approximately $466,000. Subsequent to the deposit purchase, the Company purchased approximately $18,000,000 of loans from the FDIC which the Company was permitted to select from ONB’s loan portfolio. These loans were purchased at par value.
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Correspondent banking division
The Company, through its lead bank in Winter Haven, Florida, initiated a correspondent banking and bond sales division late in 2008. The Company hired substantially all the employees of the Royal Bank of Canada’s (“RBC”) bond sales division, who were previously employees of Alabama National Bank (“ALAB”) prior to RBC’s acquisition of ALAB. The division operates out of a recently leased facility in Birmingham, Alabama. The business lines are primarily divided into three inter-related revenue generating activities. The first, and largest, revenue generator, is commissions earned on fixed income security sales. The second category includes: (1) correspondent bank deposits (i.e. federal funds purchased); (2) correspondent bank checking accounts; and (3) loans to correspondent banks. The third, and smallest revenue generating category, includes fees from safe-keeping activities, bond accounting for correspondents, and asset/liability consulting related activities. The customer base includes small to medium size financial institutions primarily located in Florida, Georgia and Alabama, but also includes several other southeastern States. During the fourth quarter of 2008, its first quarter of operations, the Company reported gross commission revenue of $1,412,000. During the first quarter of 2009, the Company reported gross commission revenue on bond sales of $2,557,000. At March 31, 2009, the Company reported $209,973,000 in deposits of correspondent banks (federal funds purchased).
Branching activity
As previously reported, on April 1, 2008, the Company sold one of its branch office buildings and simultaneously entered into an agreement to lease back the real estate for a period of one year with an option to renew the lease for an additional year. The Company did not renew the lease and closed the office on March 31, 2009. The deposit and loan accounts were transferred to the nearest existing office. The branch had approximately $9 million in deposits on the date of the branch closing.
The Company also closed two additional small branches on April 15, 2009. One branch operated from a leased facility in Hernando County since it opened in August 2007. The branch had less than $3 million in deposits on the closing date. The other branch opened in October 1998 in Sumter County and had approximately $9 million in total deposits. The Company owns the real estate for this office, which it expects to offer for sale. The deposit and loan accounts were transferred to other existing branches. The estimated annual cost savings from the three branch closings is expected to approximate $500,000.
With the closing of the three branches and the acquisition of the four Ocala branches from the FDIC discussed earlier, the Company’s branch network increased by a net of one from 37 to 38. With the addition of the Ocala branches, located in Marion County, the Company now operates within ten counties throughout central Florida. Although the Company does not expect to open any new branches during 2009, a future branch site in Polk County was purchased during the current quarter for approximately $1,000,000.
Loan portfolio mix, credit quality and allowance for loan losses
Management has continued to aggressively monitor credit risk and potential losses in the Company’s loan portfolio, in light of the current real estate environment in Florida. During the current quarter, the Company took a charge of $1,703,000 to loan loss provision (expense) and charged-off (net of recoveries) $1,566,000, or 0.18% of average loans outstanding during the quarter. The Company’s allowance for loan losses was $13,472,000 at March 31, 2009 compared to $13,335,000 at December 31, 2008, an increase of $137,000. This increase is a net result of a $634,000 increase in our general loan
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loss allowance less a $497,000 decrease in our specific loan loss allowance. The increase in our general allowance is primarily due to changes in the loan portfolio mix, changes in our historical charge-off rates and the increase in our loan portfolio. Our specific allowance is the result of specific allowance analyses prepared for each of our impaired loans. The decrease in our specific allowance is the result of the change in the mix and evaluation of impaired loans net of related charge-offs taken during the period. The allowance for loan losses as a percentage of loans outstanding was 1.49% as of March 31, 2009 and as of December 31, 2008. Management believes the Company’s allowance for loan losses was adequate at March 31, 2009. However, management recognizes that many factors can adversely impact various segments of the Company’s market and customers, and therefore there is no assurance as to the amount of losses or probable losses which may develop in the future.
The table below summarizes the changes in allowance for loan losses during the previous five quarters.
Allowance for loan losses (unaudited) | ||||||||||||||||||||
(amounts are in thousands $) | ||||||||||||||||||||
as of or for the quarter ending | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | 3/31/08 | |||||||||||||||
Allowance at beginning of period | $ | 13,335 | $ | 12,269 | $ | 11,599 | $ | 11,258 | $ | 10,828 | ||||||||||
Charge-offs | (1,597 | ) | (1,587 | ) | (1,120 | ) | (1,185 | ) | (298 | ) | ||||||||||
Recoveries | 31 | 16 | 26 | 11 | 124 | |||||||||||||||
Net charge-offs | (1,566 | ) | (1,571 | ) | (1,094 | ) | (1,174 | ) | (174 | ) | ||||||||||
Provision for loan losses | 1,703 | 2,637 | 1,764 | 1,515 | 604 | |||||||||||||||
Allowance at end of period | $ | 13,472 | $ | 13,335 | $ | 12,269 | $ | 11,599 | $ | 11,258 | ||||||||||
Eighty-four percent (84%) of the Company’s loans are collateralized by real estate, 10% are commercial non real estate loans and the remaining 6% are consumer and other non real estate loans. The loans collateralized by real estate are further delineated as follows.
Residential real estate loans: These are single family home loans originated within the Company’s local market areas by employee loan officers. The Company does not use loan brokers to originate loans for its own portfolio, nor does it acquire loans outside of its own markets. The size of this portfolio is $240,184,000 representing approximately 27% of the Company’s total loans. Within this category there are approximately $3,437,000 non performing (non accrual) loans (25 loans) as of March 31, 2009.
Commercial real estate loans: This is the largest category ($434,488,000) of the Company’s loan portfolio representing approximately 47% of total loans. This category, along with commercial non real estate lending, is the Company’s primary business. There is no significant concentration by type of property in this category but there is a geographical concentration such that the properties are all located in Central Florida. The borrowers are a mix of professionals, doctors, lawyers, and other small business people. Within this category there are approximately $8,945,000 non performing (non accrual) loans (17 loans) as of March 31, 2009.
Construction, development and land loans: The Company has no construction or development loans with national builders. We do business with local builders and developers that have typically been long time customers. This category represents approximately 10% ($93,186,000) of the Company’s total loan portfolio. The majority of the loans in this category are developed building lots, land development and other land related loans. Within the total of this category ($93,186,000) there are approximately $6,974,000 non performing (non accrual) loans (15 loans) as of March 31, 2009. The second largest non
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accrual loan in this category is for $1,034,000 and is collateralized by five newly completed townhouses. There is also one single family construction loan for $566,000. The remaining 13 loans ($5,374,000) are either developed building lots or other land related loans. The largest loan in this category is for $2,250,000 and is collateralized by four waterfront building lots plus 38 building lots in a residential subdivision.
The table below summarizes the Company’s loan mix over the most recent five quarter ends.
Loan mix (in thousands of dollars) | ||||||||||||||||||||
At quarter ended: | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | 3/31/08 | |||||||||||||||
Real estate loans | ||||||||||||||||||||
Residential | $ | 240,184 | $ | 223,290 | $ | 221,546 | $ | 211,602 | $ | 209,591 | ||||||||||
Commercial | 423,930 | 434,488 | 426,268 | 409,131 | 389,316 | |||||||||||||||
Construction, development and land loans | 93,186 | 92,475 | 90,270 | 91,514 | 95,700 | |||||||||||||||
Total real estate loans | 757,300 | 750,253 | 738,084 | 712,247 | 694,607 | |||||||||||||||
Commercial | 91,403 | 80,523 | 78,115 | 78,279 | 77,495 | |||||||||||||||
Consumer and other loans | 54,248 | 61,939 | 60,882 | 59,316 | 62,493 | |||||||||||||||
Total loans before unearned fees and costs | 902,951 | 892,715 | 877,081 | 849,842 | 834,595 | |||||||||||||||
Unearned fees and costs | (699 | ) | (714 | ) | (774 | ) | (784 | ) | (852 | ) | ||||||||||
Total loans | $ | 902,252 | $ | 892,001 | $ | 876,307 | $ | 849,058 | $ | 833,743 |
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 were 2.45% at March 31, 2009, compared to 2.23% at December 31, 2008.
Non performing assets (which the Company defines as non performing loans, as defined above, plus (a) OREO (i.e. real estate acquired through foreclosure or deed in lieu of foreclosure); and (b) other repossessed assets that are not real estate), were $34,442,000 at March 31, 2009, compared to $24,835,000 at December 31, 2008. Non performing assets as a percentage of total assets was 1.91% at March 31, 2009, compared to 1.86% at December 31, 2008.
The largest component of non performing loans is non accrual loans, which as of March 31, 2009 totaled $20,819,000 (77 loans). This amount is further delineated by loan category as follows:
Non accrual loans at 3/31/09 (in thousands of dollars) | Aggregate loan amounts | % of non accrual by category | Number of loans | |||||
Residential real estate | $ | 3,437 | 17 | % | 25 | |||
Commercial real estate | 8,945 | 43 | % | 17 | ||||
Construction, development, land | 6,974 | 33 | % | 15 | ||||
Commercial | 1,238 | 6 | % | 10 | ||||
Consumer and other | 225 | 1 | % | 10 | ||||
Total | $ | 20,819 | 100 | % | 77 |
OREO at March 31, 2009 was $11,903,000, which consists of 24 single family homes ($2,205,000), seven mobile homes with land ($492,000), eleven commercial real estate properties ($4,430,000), and various parcels of land including residential building lots, land acquisition, development and construction ($4,776,000).
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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: | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | 3/31/08 | |||||||||||||||
Non accrual loans | $ | 20,819 | $ | 19,863 | $ | 12,943 | $ | 10,385 | $ | 9,101 | ||||||||||
Past due loans 90 days or more | ||||||||||||||||||||
And still accruing interest | 1,304 | 50 | 155 | 68 | 2,345 | |||||||||||||||
Total non performing loans | 22,123 | 19,913 | 13,098 | 10,453 | 11,446 | |||||||||||||||
Other real estate owned (“OREO”) | 11,903 | 4,494 | 2,897 | 2,270 | 792 | |||||||||||||||
Repossessed assets other than real estate | 416 | 428 | 348 | 366 | 236 | |||||||||||||||
Total non performing assets | $ | 34,442 | $ | 24,835 | $ | 16,343 | $ | 13,089 | $ | 12,474 | ||||||||||
Non performing loans as a percentage of total loans | 2.45 | % | 2.23 | % | 1.49 | % | 1.23 | % | 1.37 | % | ||||||||||
Non performing assets as a percentage of total assets | 1.91 | % | 1.86 | % | 1.32 | % | 1.07 | % | 1.00 | % | ||||||||||
Net charge-offs (recoveries) | $ | 1,566 | $ | 1,571 | $ | 1,094 | $ | 1,174 | $ | 174 | ||||||||||
Net charge-offs as a percentage of average loans for the period | 0.18 | % | 0.18 | % | 0.13 | % | 0.14 | % | 0.02 | % | ||||||||||
Impaired loans (SFAS No. 114) | $ | 22,865 | $ | 24,191 | $ | 21,637 | $ | 19,523 | $ | 18,947 | ||||||||||
Non impaired loans (SFAS No. 5) | 879,387 | 867,810 | 854,670 | 829,535 | 814,796 | |||||||||||||||
Total loans | $ | 902,252 | $ | 892,001 | $ | 876,307 | $ | 849,058 | $ | 833,743 | ||||||||||
Allowance for loan losses as a percentage of period end loans: | ||||||||||||||||||||
Impaired loans (SFAS No. 114) | 5.69 | % | 7.44 | % | 4.92 | % | 5.97 | % | 6.33 | % | ||||||||||
Non impaired loans (SFAS No. 5) | 1.38 | % | 1.33 | % | 1.31 | % | 1.26 | % | 1.23 | % | ||||||||||
Total loans | 1.49 | % | 1.49 | % | 1.40 | % | 1.37 | % | 1.35 | % |
Deposit activity
During the current quarter, deposits increased by $317,884,000, or 32%. Most of this increase is due to the acquisition of the Ocala branches from the FDIC, whereby $178,000,000 of deposits were acquired. The rest of the growth was internally generated and included several large deposits from several local municipalities.
Deposit mix (in thousands of dollars) | |||||||||||||||
At quarter ended: | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | 3/31/08 | ||||||||||
Checking accounts | |||||||||||||||
Non interest bearing | $ | 209,906 | $ | 141,229 | $ | 147,154 | $ | 159,176 | $ | 172,711 | |||||
Interest bearing | 160,227 | 143,510 | 137,694 | 147,421 | 148,155 | ||||||||||
Savings deposits | 109,194 | 84,837 | 76,035 | 68,538 | 57,824 | ||||||||||
Money market accounts | 152,736 | 137,530 | 107,545 | 112,163 | 107,496 | ||||||||||
Time deposits | 679,621 | 486,694 | 490,884 | 477,029 | 518,911 | ||||||||||
Total deposits | $ | 1,311,684 | $ | 993,800 | $ | 959,312 | $ | 964,327 | $ | 1,005,097 |
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Presented below are condensed consolidated balance sheets and average balance sheets for the periods indicated.
Condensed Consolidated Balance Sheets (unaudited) | ||||||||||||||||||||
Amounts in thousands of dollars | ||||||||||||||||||||
At quarter ended: | 3/31/2009 | 12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | |||||||||||||||
Cash and due from banks | $ | 27,693 | $ | 19,702 | $ | 32,818 | $ | 33,784 | $ | 36,279 | ||||||||||
Fed funds sold | 108,073 | 57,850 | 38,411 | 36,671 | 81,585 | |||||||||||||||
Investments | 617,790 | 252,080 | 176,085 | 193,449 | 192,773 | |||||||||||||||
Loans | 902,252 | 892,001 | 876,307 | 849,058 | 833,743 | |||||||||||||||
Allowance for loan losses | (13,472 | ) | (13,335 | ) | (12,269 | ) | (11,599 | ) | (11,258 | ) | ||||||||||
Premises and equipment, net | 64,401 | 61,343 | 60,010 | 58,093 | 56,559 | |||||||||||||||
Goodwill | 33,377 | 28,118 | 28,118 | 28,118 | 28,118 | |||||||||||||||
Core deposit intangible | 4,216 | 3,948 | 4,137 | 4,330 | 4,525 | |||||||||||||||
Bank owned life insurance | 10,209 | 10,115 | 10,020 | 9,990 | 9,823 | |||||||||||||||
Other assets | 49,485 | 21,321 | 21,085 | 20,316 | 16,452 | |||||||||||||||
TOTAL ASSETS | $ | 1,802,024 | $ | 1,333,143 | $ | 1,234,722 | $ | 1,222,140 | $ | 1,248,599 | ||||||||||
Deposits | $ | 1,311,684 | $ | 993,800 | $ | 959,312 | $ | 964,327 | $ | 1,005,097 | ||||||||||
Federal funds purchased | 209,973 | 88,976 | 22,954 | — | — | |||||||||||||||
Other borrowings | 72,356 | 64,707 | 96,274 | 101,348 | 85,505 | |||||||||||||||
Other liabilities | 27,230 | 6,495 | 7,216 | 7,771 | 8,015 | |||||||||||||||
Preferred stockholders’ equity | 26,830 | 26,787 | — | — | — | |||||||||||||||
Common stockholders’ equity | 153,951 | 152,378 | 148,966 | 148,694 | 149,982 | |||||||||||||||
TOTAL LIABILITIES AND | ||||||||||||||||||||
STOCKHOLDERS’ EQUITY | $ | 1,802,024 | $ | 1,333,143 | $ | 1,234,722 | $ | 1,222,140 | $ | 1,248,599 | ||||||||||
Condensed Consolidated Average Balance Sheets (unaudited) | ||||||||||||||||||||
Amounts in thousands of dollars | ||||||||||||||||||||
At quarter ended: | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | 3/31/08 | |||||||||||||||
Investments, fed funds, and other | $ | 600,384 | $ | 262,666 | $ | 217,338 | $ | 253,513 | $ | 274,165 | ||||||||||
Loans | 894,676 | 889,367 | 861,786 | 838,915 | 834,971 | |||||||||||||||
Allowance for loan losses | (13,188 | ) | (12,914 | ) | (11,759 | ) | (11,429 | ) | (10,896 | ) | ||||||||||
All other assets | 153,880 | 147,961 | 141,707 | 137,878 | 138,754 | |||||||||||||||
TOTAL ASSETS | $ | 1,635,752 | $ | 1,287,080 | $ | 1,209,072 | $ | 1,218,877 | $ | 1,236,994 | ||||||||||
Deposits- interest bearing | $ | 1,029,330 | $ | 846,550 | $ | 803,980 | $ | 815,623 | $ | 826,334 | ||||||||||
Deposits- non interest bearing | 176,900 | 143,385 | 147,255 | 154,769 | 163,515 | |||||||||||||||
Other borrowings | 237,386 | 122,620 | 101,067 | 89,881 | 88,311 | |||||||||||||||
Other liabilities | 11,814 | 6,253 | 7,556 | 8,289 | 8,552 | |||||||||||||||
Stockholders’ equity | 180,322 | 168,272 | 149,214 | 150,315 | 150,282 | |||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,635,752 | $ | 1,287,080 | $ | 1,209,072 | $ | 1,218,877 | $ | 1,236,994 | ||||||||||
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Non interest income and non interest expense
The table below summarizes the Company’s non interest income for the periods indicated.
Quarterly Condensed Consolidated Non Interest Income (unaudited) | ||||||||||||||||
Amounts in thousands of dollars | ||||||||||||||||
For the quarter ended: | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | 3/31/08 | |||||||||||
Service charges on deposit accounts | $ | 1,133 | $ | 1,255 | $ | 1,131 | $ | 1,018 | $ | 1,086 | ||||||
Commissions from bond sales | 2,557 | 1,412 | — | — | — | |||||||||||
Commissions from mortgage broker activities | 8 | 30 | 7 | 29 | 21 | |||||||||||
Commissions from sale of mutual funds and annuities | 193 | 76 | 145 | 173 | 109 | |||||||||||
Debit card and ATM fees | 280 | 269 | 271 | 274 | 261 | |||||||||||
Loan related fees | 88 | 108 | 96 | 91 | 107 | |||||||||||
BOLI income | 94 | 95 | 100 | 97 | 95 | |||||||||||
Gain (loss) on sale of investments | 418 | 426 | 197 | (6 | ) | 44 | ||||||||||
Other service charges and fees | 179 | 101 | 60 | 68 | 78 | |||||||||||
Non interest income – subtotal | $ | 4,950 | $ | 3,772 | $ | 2,007 | $ | 1,744 | $ | 1,801 | ||||||
Sale of bank branch office real estate | — | — | — | 1,483 | — | |||||||||||
Total non interest income | $ | 4,950 | $ | 3,772 | $ | 2,007 | $ | 3,227 | $ | 1,801 |
The revenue category “commissions earned on bond sales” ($2,557,000) listed in the table above is new for the Company beginning in the fourth quarter of 2008. This revenue source is related to the Company’s new correspondent banking division discussed previously. This division, as well as the Ocala banking offices acquisition, is also the reason for the increase in “employee salaries and wages” category listed in our non interest expense table below, as well as various other non interest expense categories.
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The table below summarizes the Company’s non interest expense for the periods indicated.
Quarterly Condensed Consolidated Non Interest Expense (unaudited) | ||||||||||||||||||||
Amounts in thousands of dollars | ||||||||||||||||||||
For the quarter ended: | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | 3/31/08 | |||||||||||||||
Employee salaries and wages | $ | 5,879 | $ | 4,946 | $ | 4,123 | $ | 4,113 | $ | 3,990 | ||||||||||
Employee incentive/bonus compensation | 408 | (29 | ) | 116 | 287 | 389 | ||||||||||||||
Employee stock option expense | 104 | 102 | 102 | 107 | 91 | |||||||||||||||
Deferred compensation expense | 55 | 137 | — | — | — | |||||||||||||||
Health insurance and other employee benefits | 393 | 383 | 376 | 475 | 509 | |||||||||||||||
Payroll taxes | 440 | 325 | 276 | 279 | 329 | |||||||||||||||
Other employee related expenses | 230 | 230 | 239 | 228 | 232 | |||||||||||||||
Incremental direct cost of loan origination | (163 | ) | (192 | ) | (224 | ) | (245 | ) | (210 | ) | ||||||||||
Total salaries, wages and employee benefits | $ | 7,346 | $ | 5,902 | $ | 5,008 | $ | 5,244 | $ | 5,330 | ||||||||||
Occupancy expense | 1,209 | 993 | 1,067 | 1,025 | 1,058 | |||||||||||||||
Depreciation of premises and equipment | 751 | 778 | 617 | 606 | 589 | |||||||||||||||
Supplies, stationary and printing | 187 | 206 | 164 | 183 | 190 | |||||||||||||||
Marketing expenses | 442 | 447 | 378 | 261 | 273 | |||||||||||||||
Data processing expenses | 547 | 261 | 265 | 317 | 298 | |||||||||||||||
Legal, auditing and other professional fees | 449 | 342 | 335 | 305 | 263 | |||||||||||||||
Bank regulatory related expenses | 493 | 579 | 250 | 217 | 184 | |||||||||||||||
Postage and delivery | 100 | 99 | 90 | 88 | 90 | |||||||||||||||
ATM and debit card related expenses | 222 | 190 | 182 | 183 | 169 | |||||||||||||||
Amortization of CDI | 198 | 189 | 193 | 196 | 199 | |||||||||||||||
Loss on sale of repossessed real estate (“OREO”) | 80 | 29 | 22 | — | — | |||||||||||||||
Valuation write down of repossessed real estate (“OREO”) | 394 | 219 | 190 | 25 | — | |||||||||||||||
Loss on repossessed assets other than real estate | 214 | 48 | 38 | 37 | 2 | |||||||||||||||
Foreclosure and repossession related expenses | 173 | 149 | 100 | 77 | 70 | |||||||||||||||
Internet and telephone banking | 111 | 100 | 86 | 88 | 85 | |||||||||||||||
Operational write-offs and losses | 33 | 105 | 39 | 105 | 43 | |||||||||||||||
Correspondent account and Federal Reserve charges | 77 | 65 | 62 | 70 | 66 | |||||||||||||||
Conferences, seminars, education and training | 92 | 37 | 52 | 63 | 71 | |||||||||||||||
Director fees | 88 | 92 | 82 | 68 | 79 | |||||||||||||||
Other expenses | 495 | 526 | 393 | 402 | 348 | |||||||||||||||
Total non interest expense | $ | 13,701 | $ | 11,356 | $ | 9,613 | $ | 9,560 | $ | 9,407 |
The Company is a multi bank holding company which operates through four wholly owned subsidiary banks with 38 locations in ten 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 Stifel Nicolaus (866-780-7926), Michael Acampora, at Raymond James (800-363-9652), or Dudley Stephens, at Burke Capital Markets (404-446-1800). For additional information contact Ernest S. Pinner, CEO, or James J. Antal, CFO, at 863-419-7750.
“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
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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.
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