Investor Presentation First Quarter 2010 Exhibit 99.1 |
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, 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 and Form 10-K 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. Forward Looking Statement 2 |
Birmingham Atlanta Winston-Salem Tampa Winter Haven Corporate Overview Headquartered in Davenport, FL $1.8 billion in assets $1.3 billion in deposits Company formed: June 2000 4 Subsidiary Banks; 38 branch banking offices in 10 counties throughout Central Florida 6 of 10 counties of operation rank in the top 15 fastest growing counties in Florida 3 CenterState Bank Central Florida, N.A. CenterState Bank, N.A. CenterState Bank of Florida, N.A. Valrico State Bank |
Market Share Opportunity Combined Counties of Operation 4 Deposits per Deposits Market Branch Rank Institution ($000) Share Branches ($000) 1 Bank of America Corp. (NC) $10,301,554 20.25 % 111 $92,807 2 SunTrust Banks Inc. (GA) 9,196,029 18.08 146 62,986 3 Wells Fargo & Company (CA) 8,120,483 15.96 113 71,863 4 BB&T Corp. (NC) 3,916,987 7.70 73 53,657 5 Regions Financial Corp. (AL) 3,311,920 6.51 91 36,395 6 CenterState Banks (FL) 1,204,831 2.37 37 32,563 7 Fifth Third Bancorp (OH) 1,131,031 2.22 30 37,701 8 South Financial Group Inc. (SC) 838,113 1.65 17 49,301 9 Village Bancorp Inc. (FL) 817,150 1.61 9 90,794 10 The Tampa Banking Co. (FL) 786,536 1.55 9 87,393 Source: FDIC and SNL Financial. Deposit data as of 6/30/09. Market share data for CSFL's combined counties of operation, excluding Orange County. Excludes Orange County in which CSFL has $20.0 million in deposits and 1 branch. |
Goals and Priorities Achieve Return on Average Assets of 1.00% Surpass $5 billion in assets Expand into new markets with demographics similar to Central Florida Remain highly capitalized Strategic Goals (3 – 5 Years) Priorities (18 – 24 Months) Acquire banking institutions through FDIC assisted transactions Leverage Correspondent Banking Division Reduce the level of problem assets 5 |
Conservative Balance Sheet Loans / Assets of 53% as of 03/31/10 Constr/A&D/Land loans represent 11% of total loans versus 21% for Southeastern peers and 16% for Florida peers NPAs / Assets of 3.35% versus 4.63% for Southeastern peers and 9.73% for Florida peers Robust capital position • TCE and Tier 1 leverage ratios of 11.2% and 11.6% at 03/31/10 Source: SNL Financial and Company filings, data as of most recent quarter available. Southeastern peers include ABCB, BTFG, GRNB, PNFP, RNST, SCBT, UBSH and UCBI. Florida peers include publicly traded banks and thrifts headquartered in Florida with $500 million or more in total assets. 6 |
NEAR-TERM DRIVERS 1. Home sales up significantly Orlando up 50% over the last year 2. Home prices continue to slide - Foreclosures & shadow inventory 3. Unemployment continues to creep upward ~ 12% 4. Debt-overhang will slow expansion in the near term = Bank Consolidation Florida Outlook – Long Slow Recovery Source: Florida Legislature Office of Economic and Demographic Research 7 |
LONG-TERM DRIVERS 1. Housing more affordable 2. Baby-Boomers nearing retirement age 3. Net migration to return 4. 72 degrees in January Florida Outlook Long-Term Future Still Bright Florida’s Population Growth Source: Florida Legislature Office of Economic and Demographic Research 8 |
Positioned for FDIC Transaction Opportunities 9 Capital & NPA ratios Source: SNL Financial, data as of most recent quarter available. Florida peers include publicly traded banks and thrifts headquartered in Florida with $500 million or more in total assets. Management Prior FDIC acquisition experience – Ocala National Bank 4 separate executive teams within the Holding Company Texas Ratio > 75% or Tier 1 Leverage Ratio < 5% No. of Institutions No. of Branches Deposits ($MM) 89 589 $35,003 Acquisition Opportunity Failed Banks |
Core Deposit Focus Approximately 68,456 total accounts - $19,588 average balance per account Ocala National Bank (FDIC assisted) – Core deposits up 13% in first year Jumbo Time Deposits Retail Time Deposits Money Market & Savings Accts. Demand – Interest bearing Non – Interest bearing deposits Total Deposits ($MM) Number of Deposit Accounts Core deposits defined as non-time deposits. 10 |
Correspondent Banking Division Management lift out from RBC (formerly ALAB) and Capital Markets Division of Silverton (66 total employees) Physical operations – Birmingham (AL), Atlanta (GA) and Winston-Salem (NC) Three primary business lines Bond Sales Fed funds Safekeeping, bond accounting, and asset/liability consulting services Customer base – 450 small to medium size financial institutions primarily located in Florida, Alabama, Georgia and the Carolinas Opportunity Bank Clearing & Cash Management Talent Recruiting / M&A Division Contribution 11 ($000s, except per share) 1Q09 2Q09 3Q09 4Q09 1Q10 Net Interest Income $1,178 $1,975 $1,813 $1,656 $1,526 Non-Interest Income 2,597 2,670 6,011 7,468 6,622 Non-Interest Expense (2,104) (2,038) (5,312) (6,512) (6,164) Income Tax Expense (428) (881) (967) (1,006) (764) Net Income Impact $1,243 $1,726 $1,545 1,606 1,220 EPS Impact $0.10 $0.14 $0.07 $0.06 $0.05 |
12 Organic Growth & Ample Liquidity Total Asset Growth Loans / Deposits (%) Loans / Deposits ratio CenterState Banks, Inc. – 71% Southeastern Peers Average – 87% Florida Peers Average – 88% Loans $517 $658 $841 $892 $959 $946 Deposits 717 893 973 994 1,305 1,341 Source: SNL Financial and Company filings, data as of most recent quarter available. Southeastern peers include ABCB, BTFG, GRNB, PNFP, RNST, SCBT, UBSH and UCBI. Florida peers include publicly traded banks and thrifts headquartered in Florida with $500 million or more in total assets. |
CRE Concentrations C&D Concentration – Category A (%) CRE Concentration – Category B (%) 13 Source: SNL Financial and Company filings, data as of most recent quarter available. Southeastern peers include ABCB, BTFG, GRNB, PNFP, RNST, SCBT, UBSH and UCBI. Florida peers include publicly traded banks and thrifts headquartered in Florida with $500 million or more in total assets. |
Loan Portfolio Total Loans by Type (%) Total Loans Detail Construction, Development, & land represents only 11% of the total portfolio 14 Loan Type No. of Loans 3/31/10 Balance Avg Loan Balance Residential Real Estate 2,605 $251MM $96,000 Commercial Real Estate 1,089 444MM 408,000 Construction, A&D, & Land 570 109MM 191,000 Commercial & Industrial 1,006 87MM 86,000 Consumer /Other 2,222 55MM 25,000 Total 7,492 $946MM $126,000 |
Commercial Real Estate & Construction Loans Commercial Real Estate by Type (%) Constr/Dev/Land Loans by Type (%) $444 million (47% of total loan portfolio) 56% owner-occupied 5% Non-Accrual $109 million (11% of total loan portfolio) 12% Non-Accrual 15 Data as of 3/31/10 |
NonPerforming Loans & Other Real Estate Non-Performing Loans Other Real Estate Owned $48,787,000 (5.15% of Gross Loans) 30% of NPLs are current 80% of legal unpaid loan balance $10,059,000 62% of legal unpaid loan balance at repossession date 16 Data as of 3/31/10 Commercial Buildings (9) $3,662K Commercial Lots (1) $84K Mobile Homes w/ Land (4) $231K Vacant Land (8 parcels of land) $1,967K Mixed Properties $187K Single Family Homes (25) $2,584K Residential Lots (50) $1,344K Residential Real Estate $11,274K (73 loans) Commercial Real Estate $24,198K (51 loans) Construction, A&D, & Land $12,547K (45 loans) Commercial $375K (17 loans) Consumer / Other $393K (21 loans) |
Credit Quality Trends • ALLL / NPL ratio of 49% versus 29% for Florida Peers (MRQ) 17 Source: SNL Financial and Company filings. Nonperforming assets include 90 days or more past due. Southeastern peers include ABCB, BTFG, GRNB, PNFP, RNST, SCBT, UBSH and UCBI. Florida peers include publicly traded banks and thrifts headquartered in Florida with $500 million or more in total assets. NPAs / Loans & OREO (%) Net Charge-Offs / Avg. Loans (%) Problem Loan Trends ($MM) Reserves / Loans (%) |
Profitability 18 Source: SNL Financial and Company filings. Southeastern peers include ABCB, BTFG, GRNB, PNFP, RNST, SCBT, UBSH and UCBI. Florida peers include publicly traded banks and thrifts headquartered in Florida with $500 million or more in total assets. Pre- Tax, Pre-Provision Income & ROAA (%) Non Interest Inc / Op. Revenue (%) Net Income ($MM) Net Interest Margin (%) *Annualized |
Summary Energetic management team that is taking advantage of opportunities Home field advantage in attractive markets Available capital to deploy on FDIC assisted deals Unprecedented opportunities to add shareholder value 19 |