Raymond James Annual Institutional Investors Conference March 7, 2011 Exhibit 99.1 |
Forward Looking Statement 2 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. |
Birmingham Atlanta Winston-Salem Tampa Winter Haven Corporate Overview Headquartered in Davenport, FL $2.1 billion in assets $1.9 billion in deposits Company formed: June 2000 2 Subsidiary Banks; 54 locations 6 of 14 counties of operation rank in the top 15 fastest growing counties in Florida 3 Data pro forma for the P&A agreement with TD, excluding purchase accounting adjustments. Correspondent Banking market |
Merger and Corporate Structure 4 Merger of three national bank subsidiaries completed 12/10/10 CenterState Bank of Florida – $1.9 billion in assets Valrico State Bank – $195 million in assets Benefits of new structure includes use of capital, cost efficiency, and development of specialists. Newly consolidated special asset group comprised of 25 professionals focused on disposition of Legacy Bank assets and FDIC covered assets. Data pro forma for the P&A agreement with TD, excluding purchase accounting adjustments. |
5 Update on 2010 Initiatives Vero Beach Office Opened May 2010 $33 million in deposits at .67% cost $13 million in loans Okeechobee Office Opened June 2010 $24 million in deposits at .66% cost 1,305 new accounts opened in 8 months Wealth Management Joe Keating and team on board May of 2010 $109 million of new assets under management Core Processing System Conversion Lead bank conversion completed in September Valrico State Bank scheduled this month |
6 FDIC Acquisitions Independent National Bank of Ocala August 2010 Conversion and efficiencies to be gained in May 3% growth in core deposits Olde Cypress Community Bank July 2010 Conversion and efficiencies to be gained in July 3% growth in core deposits Community National Bank at Bartow August 2010 Conversion and efficiencies to be gained in September 2% growth in core deposits Multiple FDIC assisted targets in our markets over the next 9 months |
7 TD Transaction Acquired 4 branches in Putnam County, FL on January 20, 2011 Deposits acquired - $113 million Loans acquired - $121 million of performing loans within our footprint Economics – Loans purchased at 90% of par which will produce a healthy bargain purchase gain in 1Q2011 Credit Protection – Entered a 2 year “Put Back” agreement with TD bank for any loan that becomes 30 days delinquent or is downgraded to substandard |
Florida Economy Slowly Recovering 8 Source: The Florida Legislature Office of Economic and Demographic Research & Sterne Agee Judicial Foreclosure Process a Damper on Recovery Unemployment at 12% - but six consecutive months of job growth after losing jobs for three years Lack of loan growth opportunities will accelerate bank consolidation in Florida |
Loan Portfolio (excluding FDIC Covered Loans) Total Loans by Type (%) Total Loans Detail 9 Loan Type No. of Loans 12/31/10 Balance Avg Loan Balance Residential Real Estate 2,704 $256MM $95,000 Commercial Real Estate 1,039 410MM 395,000 Construction, A&D, & Land 572 109MM 191,000 Commercial & Industrial 977 101MM 103,000 Consumer /Other 2,739 56MM 20,000 Total 8,031 $932MM $116,000 |
Credit Quality Trends 10 Source: SNL Financial Nonperforming assets include 90 days or more past due. Florida peers include publicly traded banks and thrifts headquartered in Florida. Southeastern peers include publicly traded financial institutions located in AL, AR, FL, GA, MS, NC, SC, TN VA, and WV with total assets between $2 and $5 billion. |
Non-Performing Loans Other Real Estate Owned $65,753,000 (7.06% of Gross Loans,) 35% of NPLs are current 83% of legal unpaid loan balance, net of specific reserves $12,239,000 62% of legal unpaid loan balance at repossession date 11 Data as of 12/31/10 NonPerforming Assets (excluding FDIC Covered Assets) |
Conservative Balance Sheet Total Risk-Based Capital Ratio - 19.3% at 12/31/10 Loans / Assets of 55% at 12/31/10 40% of assets backed by the US Government Low Concentration Levels CRE at 114% of capital vs. 300% guidance CD&L at 36% of capital vs. 100% guidance Operating leverage that is yet untapped 12 |
Core Deposit Focus Value of core deposits not fully realized in this low rate environment. Approximately 116,700 total accounts - $14,400 average balance per account Core deposits defined as non-time deposits. 13 DDA and NOW 12/2009 12/2010 Change % Change Balance $427MM $605MM $178MM 42% No. of Accounts 42,400 62,600 20,200 48% |
14 Net Interest Margin |
15 Loan / Deposit Ratios Loans / Deposits ratio CenterState Banks, Inc. – 67% Southeastern Peers Average – 83% Florida Peers Average – 80% Source: SNL Financial, data as of most recent quarter available. Florida peers include publicly traded banks and thrifts headquartered in Florida. Southeastern peers include publicly traded financial institutions located in AL, AR, FL, GA, MS, NC, SC, TN VA, and WV with total assets between $2 and $5 billion. |
Birmingham Atlanta Winston-Salem Tampa Winter Haven Correspondent Banking Division Primary business lines – Bond Sales – Fed funds – Safekeeping, bond accounting, and asset/liability consulting services Customer base – 520 community banks Opportunity – Bank Clearing & Cash Management – Talent Recruiting / M&A Division Contribution 16 ($000s, except per share) 4Q09 1Q10 2Q10 3Q10 4Q10 Net Interest Income $1,656 $1,526 $1,319 $1,148 $974 Non-Interest Income 7,468 6,622 7,758 12,358 7,576 Non-Interest Expense (6,512) (6,164) (6,740) (9,249) (6,689) Income Tax Expense (1,006) (764) (900) (1,564) (700) Net Income Impact $1,606 $1,220 $1,437 $2,693 $1,161 EPS Impact $0.06 $0.05 $0.05 $0.09 $0.04 Management lift out from RBC (formerly ALAB) and Capital Markets Division of Silverton (66 employees) |
Profitability 17 1. Excludes credit costs, correspondent banking division expenses, and non recurring costs; annualized |
Summary Energetic & experienced local management team taking advantage of opportunities Turmoil offers significant organic growth opportunities Increased FDIC-assisted deals coming to our market in the next 6 – 9 months Unprecedented opportunities to add shareholder value 18 |