Exhibit 99.1
FOR IMMEDIATE RELEASE
October 23, 2009
CenterState Banks, Inc. Announces
Third Quarter 2009 Operating Results
DAVENPORT, FL. – October 23, 2009 – CenterState Banks, Inc. (NASDAQ: CSFL) reported a net loss for the third quarter of 2009 of $2,230,000, which included a loan loss provision of $8,682,000.
A summary of the third quarter highlights are as follows:
| | • | | completion of an $86 million public stock offering |
| | • | | TARP repayment – redeemed all $27,875,000 of preferred stock issued pursuant to TARP CPP on September 30, 2009 |
| | • | | strong capital position – the Company has a Tier 1 Leverage Capital ratio of 11.7% and a Tangible Common Equity ratio of 11.4%, one of the strongest capitalized publicly traded community banks in Florida |
| | • | | improvement of credit metrics from previous quarter – NPL ratio improved to 3.12% from 3.94%, NPA ratio improved to 2.20% from 2.57%, and the allowance for loan losses as a percentage of total loans increased to 1.85% compared to last quarter’s 1.77%. |
| | • | | strong and growing earnings excluding credit costs – pre-tax pre-provision and credit cost earnings (see table and notes below) was $5,749,000 during the current quarter compared to $3,882,000 during the previous sequential quarter |
| | • | | margin expansion – net interest margin (“NIM”) increased to 3.42% during the current quarter compared to 3.14% during the previous sequential quarter |
| | • | | enhanced correspondent banking division (a reportable segment) – expanded the division by adding approximately 40 new employees from the failed Silverton Bank in Atlanta, Georgia during July – the reportable segment contributed approximately $1,545,000 of after tax earnings during the current quarter |
As stated above, the Company reported a net loss of $2,230,000 for the third quarter 2009. This resulted in a net loss available to common shareholders of $3,569,000 after consideration of preferred stock dividends and accretion related to the redemption of the preferred stock issued pursuant to TARP on September 30, 2009. The net loss per common share for the current quarter was $0.17 per share basic and diluted, compared to earnings of $0.06 per share basic and diluted for the same quarter last year, on net income of $761,000.
Average earning assets increased by $546,080,000 between 3Q09 and 3Q08, which was more than enough to offset the corresponding 46bps decrease in net interest margin (“NIM”) resulting in a $3,449,000 increase in net interest income. Non interest income also increased significantly due primarily to commissions on bond sales and trading securities revenue.
These increases were offset by a $6,918,000 increase in the provision for loan losses and increases in our non interest expenses primarily due to compensation and compensation related expenses resulting from our newly formed bond sales division, operating expenses related to our January 31st Ocala deposit and branch acquisition and increases in OREO and other foreclosure related expenses.
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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.
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Quarterly Condensed Consolidated Income Statements (unaudited) Amounts in thousands of dollars (except per share data) | |
| For the quarter ended: | | 9/30/09 | | | 6/30/09 | | | 3/31/09 | | | 12/31/08 | | | 9/30/08 | |
Net interest income | | $ | 13,825 | | | $ | 12,852 | | | $ | 11,492 | | | $ | 10,065 | | | $ | 10,376 | |
Provision for loan losses | | | (8,682 | ) | | | (4,125 | ) | | | (1,703 | ) | | | (2,637 | ) | | | (1,764 | ) |
Net interest income after loan loss provision | | | 5,143 | | | | 8,727 | | | | 9,789 | | | | 7,428 | | | | 8,612 | |
Non interest income | | | 8,536 | | | | 5,117 | | | | 4,950 | | | | 3,772 | | | | 2,007 | |
Non interest expense | | | (17,663 | ) | | | (15,145 | ) | | | (13,701 | ) | | | (11,356 | ) | | | (9,613 | ) |
| | | | |
Income (loss) before income tax | | | (3,984 | ) | | | (1,301 | ) | | | 1,038 | | | | (156 | ) | | | 1,006 | |
Income tax benefit (expense) | | | 1,754 | | | | 569 | | | | (266 | ) | | | 237 | | | | (245 | ) |
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NET (LOSS) INCOME | | $ | (2,230 | ) | | $ | (732 | ) | | $ | 772 | | | $ | 81 | | | $ | 761 | |
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Net (loss) income available to common shareholders | | $ | (3,569 | ) | | $ | (1,129 | ) | | $ | 376 | | | $ | (86 | ) | | $ | 761 | |
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Earnings (loss) per share (basic) | | $ | (0.17 | ) | | $ | (0.09 | ) | | $ | 0.03 | | | $ | (0.01 | ) | | $ | 0.06 | |
Earnings (loss) per share (diluted) | | $ | (0.17 | ) | | $ | (0.09 | ) | | $ | 0.03 | | | $ | (0.01 | ) | | $ | 0.06 | |
Average common shares outstanding (basic) | | | 20,713,017 | | | | 12,481,504 | | | | 12,475,432 | | | | 12,464,933 | | | | 12,454,407 | |
Average common shares outstanding (diluted) | | | 20,713,017 | | | | 12,551,741 | | | | 12,575,424 | | | | 12,617,383 | | | | 12,590,330 | |
Common shares outstanding at period end | | | 25,773,229 | | | | 12,481,719 | | | | 12,481,019 | | | | 12,474,315 | | | | 12,454,407 | |
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PTPP earnings (note 1) | | $ | 5,749 | | | $ | 3,882 | | | $ | 3,602 | | | $ | 2,926 | | | $ | 3,120 | |
PTPP earnings per share (diluted) (note 2) | | $ | 0.28 | | | $ | 0.31 | | | $ | 0.29 | | | $ | 0 .23 | | | $ | 0.25 | |
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| Note 1: | | Pre-tax pre-provision earnings (“PTPP”) means income (loss) before income tax excluding provision for loan losses. In addition to excluding the provision for loan losses, the Company also excluded other credit related costs including losses on repossessed real estate and other assets, and other foreclosure related expenses of $1,051,000, $1,058,000, $861,000, $445,000 and $350,000 for 3Q09, 2Q09, 1Q09, 4Q08 and 3Q08, respectively. |
| Note 2: | | PTPP earnings per share means, PTPP as defined in note 1 above divided by the average number of diluted common shares outstanding. This calculation does not include the effect of preferred dividends and related accretion resulting from the preferred stock issued pursuant to TARP which the Company has redeemed on September 30, 2009. |
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| Selected financial ratios (unaudited) | | | | | | | | | | | | | | | |
| As of or for the quarter ended: | | 9/30/09 | | | 6/30/09 | | | 3/31/09 | | | 12/31/08 | | | 9/30/08 | |
Return on average assets (annualized) | | | (0.50 | )% | | | (0.16 | )% | | | 0.19 | % | | | 0.03 | % | | | 0.25 | % |
Return on average equity (annualized) | | | (4.11 | )% | | | (1.64 | )% | | | 1.74 | % | | | 0.19 | % | | | 2.03 | % |
Net interest margin (tax equivalent basis) | | | 3.42 | % | | | 3.14 | % | | | 3.16 | % | | | 3.54 | % | | | 3.88 | % |
Loan / deposit ratio | | | 75.4 | % | | | 75.6 | % | | | 68.8 | % | | | 89.8 | % | | | 91.3 | % |
Stockholders equity (to total assets) | | | 13.2 | % | | | 10.4 | % | | | 10.0 | % | | | 13.4 | % | | | 12.1 | % |
Common tangible equity (to total tangible assets) | | | 11.4 | % | | | 6.9 | % | | | 6.6 | % | | | 9.2 | % | | | 9.7 | % |
Tier 1 capital (to average assets) | | | 11.7 | % | | | 8.5 | % | | | 9.5 | % | | | 12.6 | % | | | 11.1 | % |
Efficiency ratio | | | 79 | % | | | 84 | % | | | 83 | % | | | 82 | % | | | 78 | % |
Common equity per common share | | $ | 9.14 | | | $ | 12.24 | | | $ | 12.33 | | | $ | 12.22 | | | $ | 11.96 | |
Common tangible equity per common share | | $ | 7.72 | | | $ | 9.29 | | | $ | 9.32 | | | $ | 9.64 | | | $ | 9.37 | |
Loan portfolio mix, credit quality and allowance for loan losses
Management continues 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 $8,682,000 to loan loss provision (expense) and charged-off (net of recoveries) $7,538,000, or 0.82% of average loans outstanding during the quarter (3.28% on an annualized basis). The Company’s allowance for loan losses was $17,553,000 at September 30, 2009 compared to
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$13,335,000 at December 31, 2008, an increase of $4,218,000. This increase is the result of a $4,280,000 increase in our general loan loss allowance plus a $62,000 decrease in our specific loan loss allowance. The increase in our general allowance is primarily due to changes in our historical charge-off rates, changes in our current environmental factors, changes in the loan portfolio mix, 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 charge-offs taken during the period, as well as the change in mix and evaluation of impaired loans. The Company aggressively charged-down loans during the current quarter. Of the $7,554,000 gross charge-offs, $3,684,000 were partial charge-offs related to impaired loans. A summary of the Company’s impaired loans at September 30, 2009 is presented below. Amounts are in thousands of dollars.
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Impaired loans, unpaid principal balance | | $ | 61,269 | |
partial charge-offs taken during the current quarter | | | (3,684 | ) |
partial charge-offs taken prior to the current quarter | | | (638 | ) |
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Impaired loans at September 30, 2009 | | $ | 56,947 | |
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The allowance for loan losses as a percentage of loans outstanding was 1.85% as of September 30, 2009 compared to 1.49% as of December 31, 2008. Management believes the Company’s allowance for loan losses was adequate at September 30, 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.
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Allowance for loan losses (unaudited) (amounts are in thousands $) | | | | | | | | | | | | | | | |
| as of or for the quarter ending | | 9/30/09 | | | 6/30/09 | | | 3/31/09 | | | 12/31/08 | | | 9/30/08 | |
Allowance at beginning of period | | $ | 16,409 | | | $ | 13,472 | | | $ | 13,335 | | | $ | 12,269 | | | $ | 11,599 | |
Charge-offs | | | (7,554 | ) | | | (1,208 | ) | | | (1,597 | ) | | | (1,587 | ) | | | (1,120 | ) |
Recoveries | | | 16 | | | | 20 | | | | 31 | | | | 16 | | | | 26 | |
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Net charge-offs | | | (7,538 | ) | | | (1,188 | ) | | | (1,566 | ) | | | (1,571 | ) | | | (1,094 | ) |
Provision for loan losses | | | 8,682 | | | | 4,125 | | | | 1,703 | | | | 2,637 | | | | 1,764 | |
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Allowance at end of period | | $ | 17,553 | | | $ | 16,409 | | | $ | 13,472 | | | $ | 13,335 | | | $ | 12,269 | |
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Eighty-five percent (85%) of the Company’s loans are collateralized by real estate, 9% are commercial non real estate loans and the remaining 6% are consumer and other non real estate loans. The table below summarizes the Company’s loan mix over the most recent five quarter ends.
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| Loan mix (in thousands of dollars) | | | | | | | | | | | | | | | |
| At quarter ended: | | 9/30/09 | | | 6/30/09 | | | 3/31/09 | | | 12/31/08 | | | 9/30/08 | |
Real estate loans | | | | | | | | | | | | | | | | | | | | |
Residential | | $ | 253,363 | | | $ | 260,060 | | | $ | 240,184 | | | $ | 223,290 | | | $ | 221,546 | |
Commercial | | | 426,025 | | | | 407,511 | | | | 423,930 | | | | 434,488 | | | | 426,268 | |
Construction, development and land loans - (note 1) | | | 124,306 | | | | 112,975 | | | | 93,186 | | | | 92,475 | | | | 90,270 | |
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Total real estate loans | | | 803,694 | | | | 780,546 | | | | 757,300 | | | | 750,253 | | | | 738,084 | |
Commercial | | | 88,116 | | | | 89,889 | | | | 91,403 | | | | 80,523 | | | | 78,115 | |
Consumer and other loans | | | 56,268 | | | | 56,584 | | | | 54,248 | | | | 61,939 | | | | 60,882 | |
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Total loans before unearned fees and costs | | | 948,078 | | | | 927,019 | | | | 902,951 | | | | 892,715 | | | | 877,081 | |
Unearned fees and costs | | | (775 | ) | | | (748 | ) | | | (699 | ) | | | (714 | ) | | | (774 | ) |
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Total loans | | $ | 947,303 | | | $ | 926,271 | | | $ | 902,252 | | | $ | 892,001 | | | $ | 876,307 | |
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| note 1: | | The increase in this category during the second quarter 2009 was due to several reclassifications from commercial real estate to land and land development loans at several of the Company’s banks and the increase during the third quarter 2009 was due to reclassifications of singly family lot loans from residential real estate to land and land development loans at one of the Company’s subsidiary banks. |
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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 3.12% at September 30, 2009 compared to 3.94% at June 30, 2009, and 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, in-substance foreclosure, or deed in lieu of foreclosure); and (b) other repossessed assets that are not real estate), were $39,319,000 at September 30, 2009, compared to $44,312,000 at June 30, 2009, and $24,835,000 at December 31, 2008. Non performing assets as a percentage of total assets were 2.20%, 2.57% and 1.86% at September 30, 2009, June 30, 2009, and December 31, 2008, respectively.
The table below summarizes selected credit quality data for the periods indicated.
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Selected credit quality ratios, dollars are in thousands (unaudited) | | | | | | | | | | | | | | | |
| As of or for the quarter ended: | | 9/30/09 | | | 6/30/09 | | | 3/31/09 | | | 12/31/08 | | | 9/30/08 | |
Non accrual loans | | $ | 29,519 | | | $ | 34,772 | | | $ | 20,819 | | | $ | 19,863 | | | $ | 12,943 | |
Past due loans 90 days or more And still accruing interest | | | 27 | | | | 1,752 | | | | 1,304 | | | | 50 | | | | 155 | |
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Total non performing loans | | | 29,546 | | | | 36,524 | | | | 22,123 | | | | 19,913 | | | | 13,098 | |
Other real estate owned (OREO) | | | 8,983 | | | | 7,012 | | | | 11,903 | | | | 4,494 | | | | 2,897 | |
Repossessed assets other than real estate | | | 790 | | | | 776 | | | | 416 | | | | 428 | | | | 348 | |
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Total non performing assets | | $ | 39,319 | | | $ | 44,312 | | | $ | 34,442 | | | $ | 24,835 | | | $ | 16,343 | |
Non performing loans as a percentage of total loans | | | 3.12 | % | | | 3.94 | % | | | 2.45 | % | | | 2.23 | % | | | 1.49 | % |
Non performing assets as a percentage of total assets | | | 2.20 | % | | | 2.57 | % | | | 1.91 | % | | | 1.86 | % | | | 1.32 | % |
Net charge-offs (recoveries) | | $ | 7,538 | | | $ | 1,188 | | | $ | 1,566 | | | $ | 1,571 | | | $ | 1,094 | |
Net charge-offs as a percentage of average loans for the period | | | 0.82 | % | | | 0.13 | % | | | 0.18 | % | | | 0.18 | % | | | 0.13 | % |
Net charge-offs as a percentage of average loans for the period on an annualized basis | | | 3.28 | % | | | 0.52 | % | | | 0.72 | % | | | 0.72 | % | | | 0.52 | % |
Loans past due between 30 and 89 days and accruing interest as a percentage of total loans | | | 1.34 | % | | | 1.03 | % | | | 1.59 | % | | | 2.12 | % | | | 1.00 | % |
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Impaired loans (SFAS No. 114) | | $ | 56,947 | | | $ | 40,467 | | | $ | 22,865 | | | $ | 24,191 | | | $ | 21,637 | |
Non impaired loans (SFAS No. 5) | | | 890,356 | | | | 885,804 | | | | 879,387 | | | | 867,810 | | | | 854,670 | |
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Total loans | | $ | 947,303 | | | $ | 926,271 | | | $ | 902,252 | | | $ | 892,001 | | | $ | 876,307 | |
Allowance for loan losses as a percentage of period end loans: | | | | | | | | | | | | | | | | | | | | |
Impaired loans (SFAS No. 114) | | | 3.05 | % | | | 7.58 | % | | | 5.69 | % | | | 7.44 | % | | | 4.92 | % |
Non impaired loans (SFAS No. 5) | | | 1.78 | % | | | 1.51 | % | | | 1.38 | % | | | 1.33 | % | | | 1.31 | % |
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Total loans | | | 1.85 | % | | | 1.77 | % | | | 1.49 | % | | | 1.49 | % | | | 1.40 | % |
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As shown in the table above, the largest component of non performing loans is non accrual loans. As of September 30, 2009 management had identified a total of 123 non accrual loans with an aggregate book value of $29,519,000. This amount is further delineated by collateral category and number of loans in the table below (in thousands of dollars).
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| Collateral category | | Total amount
in thousands
of dollars | | Percentage
of total
non accrual
loans | | | Number of
non accrual
loans in
category |
Residential real estate loans | | $ | 5,592 | | 19 | % | | 37 |
Commercial real estate loans | | | 13,267 | | 45 | % | | 31 |
Construction, development and land loans | | | 10,068 | | 34 | % | | 32 |
Non real estate commercial loans | | | 294 | | 1 | % | | 11 |
Non real estate consumer and other loans | | | 298 | | 1 | % | | 12 |
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Total non accrual loans at September 30, 2009 | | $ | 29,519 | | 100 | % | | 123 |
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There are no construction or development loans with national builders. The Company has historically done business with local builders and developers that have typically been long time customers. As indicated above, non accrual construction, acquisition and development, and land loans totaled $10,068,000 at September 30, 2009. Of this amount, approximately 18% is construction and the remaining 82% is developed lots and other land. The largest loan in this category is $2,250,000, which is collateralized by single family residential building lots. There are no other non accrual loans in the category in excess of $1,000,000. The Company believes that this is the loan category where the most risk is present. The category represents only 13% of the total loan portfolio, yet 34% of total non accrual loans are in this category. During the current quarter, the Company has charged down approximately $4,566,000 of the loans in this category.
The second largest component in non performing assets after non accrual loans is repossessed real estate, or OREO. At September 30, 2009 OREO was $8,983,000, which is further delineated in the table below (in thousands of dollars).
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| Description of repossessed real estate | | estimated
market value
at Sept 30, 2009 |
22 single family homes | | $ | 2,355 |
7 mobile homes with land | | | 321 |
5 office condominium units | | | 539 |
7 commercial buildings | | | 2,507 |
Mixed (9 duplexes/ 1 single fam/ 9 vac lots) | | | 521 |
17 residential building lots | | | 996 |
Vacant land / various acreages | | | 1,606 |
1 parcel commercial vacant lot | | | 138 |
Total | | $ | 8,983 |
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Deposit activity
During the current quarter, total deposits increased by $31,443,000, or 2.6%. Time deposits decreased by $2,734,000, or 0.5%, and non time deposits (i.e., core deposits) increased by $34,177,000, or 5.4%. With the purchase of the Ocala deposits from the FDIC in January 2009 and the correspondent banking activity, the Company has excess liquidity, and has no incentive to aggressively price rate sensitive time deposits. Management continues to believe that core deposits and the number of customer relationships is the value of the franchise, and continues to incentive the employees to grow these accounts and relationships.
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| Deposit mix (in thousands of dollars) | | | | | | | | | | |
| At quarter ended: | | 9/30/09 | | 6/30/09 | | 3/31/09 | | 12/31/08 | | 9/30/08 |
Checking accounts | | | | | | | | | | | | | | | |
Non interest bearing | | $ | 218,509 | | $ | 200,875 | | $ | 209,906 | | $ | 141,229 | | $ | 147,154 |
Interest bearing | | | 168,486 | | | 170,574 | | | 160,227 | | | 143,510 | | | 137,694 |
Savings deposits | | | 132,589 | | | 116,922 | | | 109,194 | | | 84,837 | | | 76,035 |
Money market accounts | | | 151,386 | | | 148,422 | | | 152,736 | | | 137,530 | | | 107,545 |
Time deposits | | | 585,278 | | | 588,012 | | | 679,621 | | | 486,694 | | | 490,884 |
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Total deposits | | $ | 1,256,248 | | $ | 1,224,805 | | $ | 1,311,684 | | $ | 993,800 | | $ | 959,312 |
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Presented below are condensed consolidated balance sheets and average balance sheets for the periods indicated.
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Condensed Consolidated Balance Sheets (unaudited) Amounts in thousands of dollars | | | | | | | | | | | | | | | |
| At quarter ended: | | 9/30/2009 | | | 6/30/2009 | | | 3/31/2009 | | | 12/31/2008 | | | 9/30/2008 | |
Cash and due from banks | | $ | 23,081 | | | $ | 23,096 | | | $ | 27,693 | | | $ | 19,702 | | | $ | 32,818 | |
Fed funds sold | | | 168,190 | | | | 82,356 | | | | 108,073 | | | | 57,850 | | | | 38,411 | |
Trading securities | | | 3,431 | | | | — | | | | — | | | | — | | | | — | |
Investments securities, available for sale | | | 508,290 | | | | 549,870 | | | | 617,790 | | | | 252,080 | | | | 176,085 | |
Loans | | | 947,303 | | | | 926,271 | | | | 902,252 | | | | 892,001 | | | | 876,307 | |
Allowance for loan losses | | | (17,553 | ) | | | (16,409 | ) | | | (13,472 | ) | | | (13,335 | ) | | | (12,269 | ) |
Premises and equipment, net | | | 64,716 | | | | 63,135 | | | | 64,401 | | | | 61,343 | | | | 60,010 | |
Goodwill | | | 32,840 | | | | 32,840 | | | | 33,377 | | | | 28,118 | | | | 28,118 | |
Core deposit intangible | | | 3,818 | | | | 4,015 | | | | 4,216 | | | | 3,948 | | | | 4,137 | |
Bank owned life insurance | | | 15,514 | | | | 15,358 | | | | 10,209 | | | | 10,115 | | | | 10,020 | |
Other assets | | | 34,193 | | | | 42,333 | | | | 49,485 | | | | 21,321 | | | | 21,085 | |
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TOTAL ASSETS | | $ | 1,783,823 | | | $ | 1,722,865 | | | $ | 1,802,024 | | | $ | 1,333,143 | | | $ | 1,234,722 | |
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| | | | | |
Deposits | | $ | 1,256,248 | | | $ | 1,224,805 | | | $ | 1,311,684 | | | $ | 993,800 | | | $ | 959,312 | |
Federal funds purchased | | | 218,273 | | | | 221,659 | | | | 209,973 | | | | 88,976 | | | | 22,954 | |
Other borrowings | | | 62,828 | | | | 82,300 | | | | 72,356 | | | | 64,707 | | | | 96,274 | |
Other liabilities | | | 10,965 | | | | 14,392 | | | | 27,230 | | | | 6,495 | | | | 7,216 | |
Preferred stockholders equity | | | — | | | | 26,879 | | | | 26,830 | | | | 26,787 | | | | — | |
Common stockholders equity | | | 235,509 | | | | 152,830 | | | | 153,951 | | | | 152,378 | | | | 148,966 | |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 1,783,823 | | | $ | 1,722,865 | | | $ | 1,802,024 | | | $ | 1,333,143 | | | $ | 1,234,722 | |
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Condensed Consolidated Average Balance Sheets (unaudited) Amounts in thousands of dollars | | | | | | | | | | | | | | | |
| At quarter ended: | | 9/30/09 | | | 6/30/09 | | | 3/31/09 | | | 12/31/08 | | | 9/30/08 | |
Investments, fed funds, and other | | $ | 703,799 | | | $ | 743,683 | | | $ | 600,384 | | | $ | 262,666 | | | $ | 217,338 | |
Loans | | | 921,405 | | | | 920,434 | | | | 894,676 | | | | 889,367 | | | | 861,786 | |
Allowance for loan losses | | | (15,785 | ) | | | (13,910 | ) | | | (13,188 | ) | | | (12,914 | ) | | | (11,759 | ) |
All other assets | | | 163,697 | | | | 168,546 | | | | 153,880 | | | | 147,961 | | | | 141,707 | |
| | | | |
TOTAL ASSETS | | $ | 1,773,116 | | | $ | 1,818,753 | | | $ | 1,635,752 | | | $ | 1,287,080 | | | $ | 1,209,072 | |
| | | | |
| | | | | |
Deposits- interest bearing | | $ | 1,036,896 | | | $ | 1,082,911 | | | $ | 1,029,330 | | | $ | 846,550 | | | $ | 803,980 | |
Deposits- non interest bearing | | | 203,982 | | | | 180,774 | | | | 176,900 | | | | 143,385 | | | | 147,255 | |
Other borrowings | | | 311,972 | | | | 352,673 | | | | 237,386 | | | | 122,620 | | | | 101,067 | |
Other liabilities | | | 5,031 | | | | 21,177 | | | | 11,814 | | | | 6,253 | | | | 7,556 | |
Stockholders equity | | | 215,235 | | | | 181,218 | | | | 180,322 | | | | 168,272 | | | | 149,214 | |
| | | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 1,773,116 | | | $ | 1,818,753 | | | $ | 1,635,752 | | | $ | 1,287,080 | | | $ | 1,209,072 | |
| | | | |
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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: | | 9/30/09 | | 6/30/09 | | 3/31/09 | | 12/31/08 | | 9/30/08 |
Service charges on deposit accounts | | $ | 1,405 | | $ | 1,300 | | $ | 1,133 | | $ | 1,255 | | $ | 1,131 |
Commissions from bond sales | | | 5,630 | | | 2,610 | | | 2,557 | | | 1,412 | | | — |
Commissions from mortgage broker activities | | | 30 | | | 52 | | | 8 | | | 30 | | | 7 |
Commissions from sale of mutual funds and annuities | | | 130 | | | 103 | | | 193 | | | 76 | | | 145 |
Debit card and ATM fees | | | 344 | | | 352 | | | 280 | | | 269 | | | 271 |
Loan related fees | | | 103 | | | 125 | | | 88 | | | 108 | | | 96 |
BOLI income | | | 156 | | | 148 | | | 94 | | | 95 | | | 100 |
Trading securities revenue | | | 312 | | | — | | | — | | | — | | | — |
Gain on sale of securities available for sale | | | 257 | | | 303 | | | 418 | | | 426 | | | 197 |
Other service charges and fees | | | 169 | | | 124 | | | 179 | | | 101 | | | 60 |
| | | |
Total non interest income | | $ | 8,536 | | $ | 5,117 | | $ | 4,950 | | $ | 3,772 | | $ | 2,007 |
The revenue category “commissions from bond sales” ($5,630,000) 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 initiated in the fourth quarter of 2008 and expanded dung the third quarter of 2009 with the addition of the team hired from the failed Silverton Bank discussed previously. This division, as well as the Ocala banking offices acquisition (January 30, 2009), 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.
The revenue category “trading securities revenue” listed in the table above is new for the Company beginning in the third quarter of 2009. During July of 2009, the Company initiated a trading securities portfolio at its lead subsidiary bank. Realized and unrealized gains and losses are included in trading securities revenue. During the current quarter, the Company recognized an aggregate of realized and unrealized net gains of $312,000 from this newly initiated activity.
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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: | | 9/30/09 | | | 6/30/09 | | | 3/31/09 | | | 12/31/08 | | | 9/30/08 | |
Employee salaries and wages | | $ | 8,496 | | | $ | 6,085 | | | $ | 5,879 | | | $ | 4,946 | | | $ | 4,123 | |
Employee incentive/bonus compensation | | | 548 | | | | 365 | | | | 408 | | | | (29 | ) | | | 116 | |
Employee stock option and stock grant expense | | | 99 | | | | 112 | | | | 104 | | | | 102 | | | | 102 | |
Deferred compensation expense | | | 55 | | | | 55 | | | | 55 | | | | 137 | | | | — | |
Health insurance and other employee benefits | | | 367 | | | | 346 | | | | 393 | | | | 383 | | | | 376 | |
Payroll taxes | | | 451 | | | | 389 | | | | 440 | | | | 325 | | | | 276 | |
Other employee related expenses | | | 267 | | | | 266 | | | | 230 | | | | 230 | | | | 239 | |
Incremental direct cost of loan origination | | | (190 | ) | | | (197 | ) | | | (163 | ) | | | (192 | ) | | | (224 | ) |
| | | | |
Total salaries, wages and employee benefits | | $ | 10,093 | | | $ | 7,421 | | | $ | 7,346 | | | $ | 5,902 | | | $ | 5,008 | |
| | | | | |
Occupancy expense | | | 1,408 | | | | 1,368 | | | | 1,209 | | | | 993 | | | | 1,067 | |
Depreciation of premises and equipment | | | 728 | | | | 681 | | | | 751 | | | | 778 | | | | 617 | |
Supplies, stationary and printing | | | 210 | | | | 233 | | | | 187 | | | | 206 | | | | 164 | |
Marketing expenses | | | 464 | | | | 444 | | | | 442 | | | | 447 | | | | 378 | |
Data processing expenses | | | 621 | | | | 607 | | | | 547 | | | | 261 | | | | 265 | |
Legal, auditing and other professional fees | | | 602 | | | | 488 | | | | 449 | | | | 342 | | | | 335 | |
Bank regulatory related expenses | | | 612 | | | | 1,349 | | | | 493 | | | | 579 | | | | 250 | |
Postage and delivery | | | 113 | | | | 110 | | | | 100 | | | | 99 | | | | 90 | |
ATM and debit card related expenses | | | 264 | | | | 284 | | | | 222 | | | | 190 | | | | 182 | |
Amortization of CDI | | | 197 | | | | 201 | | | | 198 | | | | 189 | | | | 193 | |
Loss on sale of repossessed real estate (“OREO”) | | | 175 | | | | 209 | | | | 80 | | | | 29 | | | | 22 | |
Valuation write down of repossessed real estate (“OREO”) | | | 482 | | | | 511 | | | | 394 | | | | 219 | | | | 190 | |
Loss on repossessed assets other than real estate | | | 176 | | | | 54 | | | | 214 | | | | 48 | | | | 38 | |
Foreclosure and repossession related expenses | | | 218 | | | | 284 | | | | 173 | | | | 149 | | | | 100 | |
Internet and telephone banking | | | 111 | | | | 136 | | | | 111 | | | | 100 | | | | 86 | |
Operational write-offs and losses | | | 85 | | | | 44 | | | | 33 | | | | 105 | | | | 39 | |
Correspondent account and Federal Reserve charges | | | 83 | | | | 92 | | | | 77 | | | | 65 | | | | 62 | |
Conferences, seminars, education and training | | | 122 | | | | 81 | | | | 92 | | | | 37 | | | | 52 | |
Director fees | | | 87 | | | | 84 | | | | 88 | | | | 92 | | | | 82 | |
Other expenses | | | 812 | | | | 464 | | | | 495 | | | | 526 | | | | 393 | |
| | | | |
Total non interest expense | | $ | 17,663 | | | $ | 15,145 | | | $ | 13,701 | | | $ | 11,356 | | | $ | 9,613 | |
About CenterState Banks, Inc.
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 Troy Carlson, 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
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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 assure you that future results, levels of activity, performance or goals will be achieved.
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