Exhibit 99.1
FOR IMMEDIATE RELEASE January 25, 2017 |
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CenterState Banks, Inc. Announces
Fourth Quarter 2016 Earnings Results
(all amounts are in thousands of dollars, except per share data, or unless otherwise noted)
WINTER HAVEN, FL. – January 25, 2017 - CenterState Banks, Inc. (Nasdaq: CSFL) reported net income of $16,027 or diluted earnings per share (“EPS”) of $0.33 for the fourth quarter of 2016, compared to reported net income of $10,396 or $0.23 EPS during the same period in 2015. The current quarter’s net income of $16,027 was impacted by gains on sale of bank properties held for sale of approximately $483, net of tax, and merger related costs of approximately ($180), net of tax.
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| 4Q16 |
| 4Q15 |
Return on average assets (annualized) | 1.25% |
| 1.02% |
Return on average tangible equity (annualized) (note 1) | 15.3% |
| 10.9% |
Efficiency ratio (note 1) | 58% |
| 65% |
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CURRENT QUARTER HIGHLIGHTS
| • | Loans – 19% annualized increase in loans during the current quarter, excluding the decline in Purchased Credit Impaired (“PCI”) loans; 16% increase in loans during the year, excluding PCI loans and acquisition date loan balances from the two Homestead, FL bank transactions |
| • | Deposits – 15% annualized increase in non-time deposits during the current quarter with a cost of deposits of 0.18%; 11.5% increase in non-time deposits for the year excluding acquisition date deposit balances from the two Homestead, FL bank transactions. |
| • | Announced acquisitions – the Company announced it entered into a definitive agreement to acquire Platinum Bank Holding Company and Gateway Financials Holdings of Florida, Inc.: |
| o | Combined target balances: |
| • | Assets: $1.5 billion |
| • | Loans: $1.0 billion |
| • | Deposits: $1.2 billion |
| o | Pro-forma balances: |
| • | Assets: $6.5 billion |
| • | Loans: $4.3 billion |
| • | Deposits: $5.4 billion |
| o | Double-digit EPS accretion fully phased-in 2018. |
| o | Among Florida-based community banks, pro-forma CSFL will be: |
| • | #1 market share in the Lakeland-Winter Haven MSA and Deltona-Daytona Beach-Ormond Beach MSA; |
| • | #2 market share in the state of Florida; |
Note 1: See reconciliation presented on page 17, Explanation of Certain Unaudited Non-GAAP Financial Measures.
On January 13, 2017, the Company completed the sale of 2,695,000 shares of common stock pursuant to a public offering at $23.58 per share which resulted in approximately $62.9 million in net proceeds.
On January 23, 2017, the Company signed a first amendment to the loan agreement with NexBank SSB to increase its revolving line of credit from an original principal amount of $25 million to $50 million.
Condensed Consolidated Income Statement
Quarterly condensed consolidated income statements (unaudited) are shown below for the periods indicated.
Quarterly Condensed Consolidated Statements of Operations (unaudited)
For the quarter ended: | 12/31/16 |
| 9/30/16 |
| 6/30/16 |
| 3/31/16 |
| 12/31/15 |
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Interest income | $ | 50,155 |
| $ | 47,703 |
| $ | 47,309 |
| $ | 43,498 |
| $ | 41,098 |
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Interest expense |
| 2,621 |
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| 2,384 |
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| 2,312 |
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| 2,023 |
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| 1,819 |
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Net interest income |
| 47,534 |
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| 45,319 |
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| 44,997 |
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| 41,475 |
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| 39,279 |
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Provision for loan losses |
| 2,019 |
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| 1,090 |
| 925 |
| 511 |
| 484 |
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Provision (recovery) for loan losses- PCI loans |
| 247 |
| 185 |
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| (14 | ) |
| (1 | ) | 59 |
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Net interest income after loan loss provision |
| 45,268 |
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| 44,044 |
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| 44,086 |
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| 40,965 |
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| 38,736 |
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Correspondent banking and capital markets division- income |
| 8,091 |
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| 7,528 |
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| 9,291 |
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| 8,775 |
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| 6,241 |
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Gain on sale of securities available for sale | --- |
| 13 |
| --- |
| --- |
| --- |
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FDIC- IA amortization (negative accretion) (1) | --- |
| --- |
| --- |
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| (1,166 | ) |
| (3,420 | ) | |||
FDIC- revenue (1) | --- |
| --- |
| --- |
| 96 |
| 633 |
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Gain on early extinguishment of debt | --- |
| --- |
| --- |
| 308 |
| --- |
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Gain on sale of bank properties held for sale |
| 730 |
| 67 |
| --- |
| --- |
| --- |
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All other non interest income |
| 8,335 |
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| 8,073 |
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| 7,680 |
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| 6,548 |
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| 6,212 |
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Total non interest income |
| 17,156 |
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| 15,681 |
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| 16,971 |
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| 14,561 |
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| 9,666 |
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Credit related expenses |
| 624 |
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| 187 |
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| 611 |
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| 359 |
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| 1,306 |
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Correspondent banking and capital markets division-expense |
| 5,987 |
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| 5,456 |
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| 6,159 |
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| 5,782 |
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| 5,094 |
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Merger and acquisition related expenses |
| 272 |
| --- |
| --- |
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| 11,172 |
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| 524 |
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Impairment (recovery) of bank property held for sale |
| 116 |
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| 616 |
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| (38 | ) |
| 456 |
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| 94 |
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Termination of FDIC loss share agreements (1) | --- |
| --- |
| --- |
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| 17,560 |
| --- |
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All other non interest expense |
| 31,185 |
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| 30,136 |
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| 30,317 |
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| 27,524 |
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| 25,068 |
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Total non interest expense |
| 38,184 |
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| 36,395 |
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| 37,049 |
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| 62,853 |
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| 32,086 |
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Income (loss) before income tax |
| 24,240 |
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| 23,330 |
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| 24,008 |
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| (7,327 | ) |
| 16,316 |
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Income tax provision (benefit) |
| 8,213 |
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| 7,946 |
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| 8,274 |
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| (2,523 | ) |
| 5,920 |
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NET INCOME (LOSS) | $ | 16,027 |
| $ | 15,384 |
| $ | 15,734 |
| $ | (4,804 | ) | $ | 10,396 |
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Net income (loss) allocated to common shares | $ | 15,970 |
| $ | 15,324 |
| $ | 15,672 |
| $ | (4,804 | ) | $ | 10,343 |
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Earnings (loss) per share (basic) | $ | 0.33 |
| $ | 0.32 |
| $ | 0.33 |
| $ | (0.10 | ) | $ | 0.23 |
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Earnings (loss) per share (diluted) | $ | 0.33 |
| $ | 0.32 |
| $ | 0.32 |
| $ | (0.10 | ) | $ | 0.23 |
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Average common shares outstanding (basic) |
| 47,870 |
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| 47,821 |
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| 47,782 |
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| 46,343 |
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| 45,237 |
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Average common shares outstanding (diluted) |
| 48,800 |
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| 48,603 |
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| 48,454 |
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| 46,343 |
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| 45,935 |
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Common shares outstanding at period end |
| 48,147 |
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| 48,017 |
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| 47,996 |
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| 47,943 |
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| 45,459 |
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note 1: | In February 2016, the Company terminated all existing loss share agreements with the FDIC. As a result, the Company wrote off the remaining indemnification asset and the claw back liability, received cash from the FDIC, and recognized a loss on the transaction of approximately $17,560 during the first quarter. |
2
Loans, excluding PCI loans and loans acquired in the two Homestead bank transactions, increased $391,469 during the year, a growth rate of approximately 16%. Total new loans originated during the current quarter approximated $298.2 million, of which $253.7 million were funded. About 36% of funded loan origination was non-owner occupied commercial real estate (“CRE”); 20% commercial and industrial (“C&I”), 19% owner occupied CRE, 14% single family residential, 7% land, development & construction and 4% were all other.
Approximately 23% of the funded loan production was floating rate, 19% was other variable rate and 58% was fixed rate. The loan origination pipeline is approximately $372 million at December 31, 2016 compared to $378 million at September 30, 2016. The graph below summarizes total loan production and funded loan production over the past five quarters.
3
LOAN MIX
The table below summarizes the Company’s loan mix over the most recent five quarter ends.
At quarter ended: | 12/31/2016 |
| 9/30/2016 |
| 6/30/2016 |
| 3/31/2016 |
| 12/31/2015 |
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Originated Loans |
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Real estate loans |
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Residential | $ | 552,749 |
| $ | 534,070 |
| $ | 517,861 |
| $ | 507,835 |
| $ | 491,149 |
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Commercial |
| 1,112,149 |
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| 1,019,458 |
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| 910,687 |
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| 824,702 |
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| 781,419 |
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Land, development and construction loans |
| 115,983 |
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| 94,896 |
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| 100,584 |
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| 99,605 |
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| 91,817 |
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Total real estate loans |
| 1,780,881 |
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| 1,648,424 |
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| 1,529,132 |
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| 1,432,142 |
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| 1,364,385 |
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Commercial loans |
| 382,009 |
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| 339,938 |
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| 301,557 |
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| 290,658 |
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| 251,855 |
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Consumer and other loans |
| 87,266 |
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| 80,391 |
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| 74,398 |
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| 69,528 |
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| 67,026 |
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Total loans before unearned fees and costs |
| 2,250,156 |
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| 2,068,753 |
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| 1,905,087 |
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| 1,792,328 |
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| 1,683,266 |
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Unearned fees and costs |
| 475 |
| 519 |
| 479 |
| 796 |
| 873 |
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Total originated loans |
| 2,250,631 |
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| 2,069,272 |
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| 1,905,566 |
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| 1,793,124 |
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| 1,684,139 |
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Acquired Loans (1) |
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Real estate loans |
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Residential |
| 263,555 |
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| 272,419 |
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| 284,580 |
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| 291,886 |
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| 156,347 |
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Commercial |
| 643,773 |
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| 662,917 |
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| 682,693 |
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| 705,877 |
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| 473,363 |
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Land, development and construction loans |
| 26,061 |
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| 25,435 |
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| 24,797 |
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| 31,541 |
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| 13,459 |
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Total real estate loans |
| 933,389 |
|
| 960,771 |
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| 992,070 |
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| 1,029,304 |
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| 643,169 |
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Commercial loans |
| 57,531 |
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| 62,775 |
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| 75,638 |
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| 82,970 |
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| 55,466 |
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Consumer and other loans |
| 2,272 |
|
| 4,376 |
|
| 4,834 |
| 6307 |
| 474 |
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Total acquired loans |
| 993,192 |
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| 1,027,922 |
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| 1,072,542 |
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| 1,118,581 |
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| 699,109 |
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PCI loans |
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Real estate loans |
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Residential |
| 72,179 |
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| 74,825 |
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| 78,371 |
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| 82,595 |
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| 86,104 |
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Commercial |
| 99,566 |
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| 106,482 |
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| 120,255 |
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| 127,354 |
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| 105,629 |
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Land, development and construction loans |
| 9,944 |
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| 10,928 |
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| 11,649 |
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| 19,912 |
|
| 15,548 |
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Total real estate loans |
| 181,689 |
|
| 192,235 |
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| 210,275 |
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| 229,861 |
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| 207,281 |
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Commercial loans |
| 3,825 |
|
| 4,649 |
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| 5,974 |
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| 6,020 |
|
| 2,771 |
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Consumer and other loans |
| 410 |
| 404 |
| 610 |
| 635 |
| 476 |
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Total PCI loans |
| 185,924 |
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| 197,288 |
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| 216,859 |
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| 236,516 |
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| 210,528 |
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Total Loans | $ | 3,429,747 |
| $ | 3,294,482 |
| $ | 3,194,967 |
| $ | 3,148,221 |
| $ | 2,593,776 |
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| (1) | Acquired loans include the non-PCI loans purchased pursuant to the following acquisitions: |
| o | Branch and loan transaction with TD Bank (year 2011); |
| o | Federal Trust Bank acquisition (year 2011); |
| o | Gulfstream Business Bank acquisition (year 2014); |
| o | First Southern Bank acquisition (year 2014); |
| o | Community Bank of South Florida acquisition (year 2016); and |
| o | Hometown of Homestead Banking Company (year 2016). |
4
During the quarter, the Company’s total deposits increased by $96,610, or approximately 9% on an annualized basis. The majority of the increase in deposits during the current quarter was in interest bearing checking accounts. The overall cost of total deposits (i.e. includes non-interest bearing checking accounts) during the current quarter was 0.18%, the same as the previous quarter. The table below summarizes the Company’s deposit mix over the periods indicated.
Deposit mix (unaudited) |
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For the quarter ended: | 12/31/2016 |
| 9/30/2016 |
| 6/30/2016 |
| 3/31/2016 |
| 12/31/2015 |
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Checking accounts |
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Non-interest bearing | $ | 1,426,624 |
| $ | 1,406,030 |
| $ | 1,486,600 |
| $ | 1,489,530 |
| $ | 1,133,138 |
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Interest bearing |
| 917,004 |
|
| 814,123 |
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| 763,614 |
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| 756,129 |
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| 679,714 |
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Savings deposits |
| 362,947 |
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| 352,547 |
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| 347,631 |
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| 341,864 |
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| 241,605 |
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Money market accounts |
| 900,532 |
|
| 903,697 |
|
| 927,997 |
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| 872,219 |
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| 738,301 |
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Time deposits |
| 545,437 |
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| 579,537 |
|
| 606,294 |
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| 632,425 |
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| 422,420 |
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Total deposits | $ | 4,152,544 |
| $ | 4,055,934 |
| $ | 4,132,136 |
| $ | 4,092,167 |
| $ | 3,215,178 |
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Non time deposits as percentage of total deposits |
| 87 | % |
| 86 | % |
| 85 | % |
| 85 | % |
| 87 | % |
Time deposits as percentage of total deposits |
| 13 | % |
| 14 | % |
| 15 | % |
| 15 | % |
| 13 | % |
Total deposits |
| 100 | % |
| 100 | % |
| 100 | % |
| 100 | % |
| 100 | % |
5
NET INTEREST MARGIN (“NIM”)
The Company’s NIM increased from 4.12% in 3Q16 to 4.20% in 4Q16, due to higher yields during the quarter related to PCI loans compared to the prior quarter.
The additional PCI loan yield was offset in part due to a decrease in the yield on loans other than PCI loans by 2 basis points (“bps”) compared to the prior quarter as the yields generated on significant recent loan production (tax equivalent yield of 3.82% during the current quarter and 3.76% during the full year of 2016) continues to compress the overall loan yield. Also partially offsetting the benefit from the additional PCI loan yield was a greater mix of federal funds sold, a continued increase in paydowns on mortgage backed securities compressing the yield on the investment portfolio and an increase of 1 basis point on interest bearing liabilities.
During the current quarter, several PCI loans were paid off in full resulting in cash payments to the Company in excess of the related pools’ carrying balances. The excess cash payments (approximately $1,802) were included in interest income immediately and contributed approximately 3.72% to the 19.10% yield on PCI loans for the current quarter.
If the PCI loans were producing income based on the contractual terms at the time of acquisition, the NIM’s during the current quarter and the same quarter last year would have been approximately 3.62% and 3.65%, respectively.
The table below summarizes yields and costs by various interest earning asset and interest bearing liability account types for the current quarter, the previous calendar quarter and the same quarter last year.
Yield and cost table (unaudited)
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| 4Q16 |
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| 3Q16 |
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| 4Q15 |
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| average |
| interest |
| avg |
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| average |
| interest |
| avg |
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| average |
| interest |
| avg |
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| balance |
| inc/exp |
| rate |
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| balance |
| inc/exp |
| rate |
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| balance |
| inc/exp |
| rate |
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Loans (TEY)* | $ | 3,160,914 |
| $ | 35,305 |
|
| 4.44 | % |
| $ | 3,037,333 |
| $ | 34,071 |
|
| 4.46 | % |
| $ | 2,363,060 |
| $ | 26,337 |
|
| 4.42 | % |
PCI loans |
| 192,755 |
|
| 9,256 |
|
| 19.10 | % |
|
| 207,406 |
|
| 7,795 |
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| 14.95 | % |
|
| 222,685 |
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| 9,420 |
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| 16.78 | % |
Taxable securities |
| 871,989 |
|
| 4,397 |
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| 2.01 | % |
|
| 900,514 |
|
| 4,693 |
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| 2.07 | % |
|
| 737,057 |
|
| 4,480 |
|
| 2.41 | % |
Tax -exempt securities (TEY) |
| 149,637 |
|
| 1,694 |
|
| 4.50 | % |
|
| 134,576 |
|
| 1,581 |
|
| 4.67 | % |
|
| 85,329 |
|
| 1,076 |
|
| 5.00 | % |
Fed funds sold and other |
| 230,418 |
|
| 539 |
|
| 0.93 | % |
|
| 187,906 |
| 512 |
|
| 1.08 | % |
|
| 211,112 |
|
| 403 |
|
| 0.76 | % | |
Tot. interest earning assets(TEY) | $ | 4,605,713 |
| $ | 51,191 |
|
| 4.42 | % |
| $ | 4,467,735 |
| $ | 48,652 |
|
| 4.33 | % |
| $ | 3,619,243 |
| $ | 41,716 |
|
| 4.57 | % |
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Interest bearing deposits | $ | 2,699,762 |
| $ | 1,892 |
|
| 0.28 | % |
| $ | 2,678,638 |
| $ | 1,821 |
|
| 0.27 | % |
| $ | 2,072,838 |
| $ | 1,351 |
|
| 0.26 | % |
Fed funds purchased |
| 273,691 |
| 393 |
|
| 0.57 | % |
|
| 181,037 |
| 238 |
|
| 0.52 | % |
|
| 203,413 |
| 186 |
|
| 0.36 | % | |||
Other borrowings |
| 27,002 |
| 23 |
|
| 0.34 | % |
|
| 28,847 |
| 27 |
|
| 0.37 | % |
|
| 27,061 |
| 36 |
|
| 0.53 | % | |||
Corporate debentures |
| 25,919 |
| 313 |
|
| 4.80 | % |
|
| 25,852 |
| 298 |
|
| 4.59 | % |
|
| 24,070 |
| 246 |
|
| 4.05 | % | |||
Total interest bearing liabilities | $ | 3,026,374 |
| $ | 2,621 |
|
| 0.34 | % |
| $ | 2,914,374 |
| $ | 2,384 |
|
| 0.33 | % |
| $ | 2,327,382 |
| $ | 1,819 |
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| 0.31 | % |
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Net Interest Spread (TEY) |
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| 4.08 | % |
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| 4.00 | % |
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| 4.26 | % |
Net Interest Margin (TEY) |
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| 4.20 | % |
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| 4.12 | % |
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| 4.37 | % |
*TEY = tax equivalent yield (Non-GAAP)
6
The table below summarizes the Company’s yields on interest earning assets and costs of interest bearing liabilities over the prior five quarters.
Five quarter trend of yields and costs (unaudited) |
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For the quarter ended: | 12/31/2016 |
| 9/30/2016 |
| 6/30/2016 |
| 3/31/2016 |
| 12/31/2015 |
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Yield on loans (TEY)* |
| 4.44% |
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| 4.46% |
|
| 4.53% |
|
| 4.46% |
|
| 4.42% |
|
Yield on PCI loans |
| 19.10% |
|
| 14.95% |
|
| 14.35% |
|
| 16.66% |
|
| 16.78% |
|
Yield on securities (TEY) |
| 2.37% |
|
| 2.41% |
|
| 2.49% |
|
| 2.83% |
|
| 2.68% |
|
Yield on fed funds sold and other |
| 0.93% |
|
| 1.08% |
|
| 0.92% |
|
| 0.96% |
|
| 0.76% |
|
Yield on total interest earning assets |
| 4.33% |
|
| 4.25% |
|
| 4.28% |
|
| 4.49% |
|
| 4.51% |
|
Yield on total interest earning assets (TEY) |
| 4.42% |
|
| 4.33% |
|
| 4.35% |
|
| 4.56% |
|
| 4.57% |
|
Cost of interest bearing deposits |
| 0.28% |
|
| 0.27% |
|
| 0.27% |
|
| 0.26% |
|
| 0.26% |
|
Cost of fed funds purchased |
| 0.57% |
|
| 0.52% |
|
| 0.52% |
|
| 0.53% |
|
| 0.36% |
|
Cost of other borrowings |
| 0.34% |
|
| 0.37% |
|
| 0.41% |
|
| 0.42% |
|
| 0.53% |
|
Cost of corporate debentures |
| 4.80% |
|
| 4.59% |
|
| 4.58% |
|
| 4.66% |
|
| 4.05% |
|
Cost of interest bearing liabilities |
| 0.34% |
|
| 0.33% |
|
| 0.32% |
|
| 0.32% |
|
| 0.31% |
|
Net interest margin (TEY) |
| 4.20% |
|
| 4.12% |
|
| 4.14% |
|
| 4.35% |
|
| 4.37% |
|
Cost of total deposits |
| 0.18% |
|
| 0.18% |
|
| 0.17% |
|
| 0.17% |
|
| 0.16% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*TEY = tax equivalent yield (Non-GAAP) |
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|
SELECTED CONSOLIDATED FINANCIAL DATA |
| ||||||||||||||
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The table below summarizes selected financial ratios over the prior five quarters. |
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Selected financial data (unaudited) |
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|
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|
As of or for the quarter ended: | 12/31/2016 |
| 9/30/2016 |
| 6/30/2016 |
| 3/31/2016 |
| 12/31/2015 |
| |||||
Return on average assets (annualized) |
| 1.25 | % |
| 1.22 | % |
| 1.27 | % |
| -0.44 | % |
| 1.02 | % |
Return on average equity (annualized) |
| 11.51 | % |
| 11.21 | % |
| 11.96 | % |
| -3.88 | % |
| 8.52 | % |
Return on average tangible equity (annualized) (note 1) |
| 15.26 | % |
| 14.95 | % |
| 16.14 | % |
| -4.49 | % |
| 10.86 | % |
Loan / deposit ratio |
| 82.6 | % |
| 81.2 | % |
| 77.3 | % |
| 76.9 | % |
| 80.7 | % |
Stockholders’ equity (to total assets) |
| 10.9 | % |
| 11.0 | % |
| 10.8 | % |
| 10.5 | % |
| 12.2 | % |
Common tangible equity (to total tangible assets) (note 1) |
| 8.7 | % |
| 8.8 | % |
| 8.5 | % |
| 8.2 | % |
| 10.2 | % |
Tier 1 capital (to average assets) |
| 9.1 | % |
| 9.0 | % |
| 8.7 | % |
| 9.6 | % |
| 10.5 | % |
Efficiency ratio, including correspondent banking (note 1) |
| 58.1 | % |
| 58.7 | % |
| 59.0 | % |
| 80.3 | % |
| 64.7 | % |
Efficiency ratio, excluding correspondent banking (note1) |
| 56.9 | % |
| 57.8 | % |
| 58.8 | % |
| 85.0 | % |
| 64.2 | % |
Common equity per common share | $ | 11.47 |
| $ | 11.51 |
| $ | 11.21 |
| $ | 10.84 |
| $ | 10.79 |
|
Common tangible equity per common share (note 1) | $ | 8.93 |
| $ | 8.96 |
| $ | 8.64 |
| $ | 8.25 |
| $ | 8.82 |
|
note 1: | See reconciliation tables starting on page 17, Explanation of Certain Unaudited Non-GAAP Financial Measures. |
7
PURCHASED CREDIT IMPAIRED (“PCI”) LOANS
The table below compares the unpaid principal balance and the carrying balance (book balance) of the Company’s total PCI loans at December 31, 2016.
| Unpaid |
|
|
|
| Principal | Carrying |
|
|
| Balance | Balance | Difference | Percentage |
Total PCI loans | $249,225 | $185,924 | ($63,301) | 25% |
CREDIT QUALITY AND ALLOWANCE FOR LOAN LOSSES
During the quarter, the Company recorded a loan loss provision expense of $2,266 and charge-offs net of recoveries of $724, resulting in an increase in the allowance for loan losses of $1,542 as shown in the table below.
The total allowance for loan losses (“ALLL") was $27,041 at December 31, 2016 compared to $25,499 at September 30, 2016, an increase of $1,542. This increase is the result of the aggregate effect of: (1) a net increase of $1,467 in the allowance for loan losses on originated loans ($1,508 increase in general loan loss allowance and decrease of $41 in specific loan loss allowance); (2) a net decrease of $172 in acquired loans ($172 decrease in general loan loss allowance and no change in specific loan loss allowance); and (3) an increase of $247 in the allowance for loan losses on PCI loans. The changes in the Company’s ALLL components between December 31, 2016 and September 30, 2016 are summarized in the table below (unaudited).
| December 31, 2016 |
|
| September 30, 2016 |
|
| increase (decrease) | ||||||||||||||||||||
| loan |
| ALLL |
|
|
|
|
| loan |
| ALLL |
|
|
|
|
| loan |
| ALLL |
|
| ||||||
| balance |
| balance |
| % |
|
| balance |
| balance |
| % |
|
| balance |
| balance |
|
| ||||||||
Originated loans | $ | 2,232,474 |
| $ | 22,934 |
|
| 1.03 | % |
| $ | 2,051,764 |
| $ | 21,426 |
|
| 1.04 | % |
| $ | 180,710 |
| $ | 1,508 |
| (1) bps |
Impaired originated loans |
| 18,157 |
|
| 652 |
|
| 3.59 | % |
|
| 17,508 |
| 693 |
|
| 3.96 | % |
|
| 649 |
|
| (41 | ) | (37) bps | |
Total originated loans |
| 2,250,631 |
|
| 23,586 |
|
| 1.05 | % |
|
| 2,069,272 |
|
| 22,119 |
|
| 1.07 | % |
|
| 181,359 |
|
| 1,467 |
| (2) bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired loans (2) |
| 991,096 |
|
| 2,940 |
|
| 0.30 | % | �� |
| 1,025,914 |
|
| 3,112 |
|
| 0.30 | % |
|
| (34,818 | ) |
| (172 | ) | 0 bps |
Impaired acquired loans (1) |
| 2,096 |
|
| 43 |
|
| 2.05 | % |
|
| 2,008 |
| 43 |
|
| 2.14 | % |
|
| 88 |
|
| - |
| (9) bps | |
Total acquired loans |
| 993,192 |
|
| 2,983 |
|
| 0.30 | % |
|
| 1,027,922 |
|
| 3,155 |
|
| 0.31 | % |
|
| (34,730 | ) |
| (172 | ) | (1) bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-PCI loans |
| 3,243,823 |
|
| 26,569 |
|
|
|
|
|
| 3,097,194 |
|
| 25,274 |
|
|
|
|
|
| 146,629 |
|
| 1,295 |
|
|
PCI loans |
| 185,924 |
|
| 472 |
|
|
|
|
|
| 197,288 |
| 225 |
|
|
|
|
|
| (11,364 | ) |
| 247 |
|
| |
Total loans | $ | 3,429,747 |
| $ | 27,041 |
|
|
|
|
| $ | 3,294,482 |
| $ | 25,499 |
|
|
|
|
| $ | 135,265 |
| $ | 1,542 |
|
|
| (1) | These are loans that were acquired as performing loans that subsequently became impaired. |
| (2) | Performing acquired loans recorded at estimated fair value on the related acquisition dates. The total net unamortized fair value adjustment at December 31, 2016 was approximately $15,215 or 1.5% of the aggregate outstanding related loan balances. Prior to March 31, 2016, the Company did not previously include loans acquired pursuant to the TD Bank and Federal Trust acquisitions that occurred in 2011. Acquired loans currently include performing loans acquired from the TD Bank acquisition (year 2011), the Federal Trust acquisition (year 2011), the Gulfstream Business Bank acquisition (year 2014), the First Southern Bank acquisition (year 2014), the Community Bank acquisition (year 2016) and the Hometown of Homestead Banking Company acquisition (year 2016). All prior periods have been reclassified to conform to this new presentation format. |
The general loan loss allowance (non-impaired loans) relating to originated loans increased by $1,508 resulting primarily from an increase in loans outstanding.
The general loan loss allowance (non-impaired loans) relating to acquired loans decreased by $172 resulting primarily from a decrease in loans outstanding, excluding the two bank acquisitions (Community Bank and Hometown of Homestead Banking Company) which occurred during the first quarter. At December 31, 2016 the loans acquired from these two acquisitions were equal to approximately $404,636. These loans were recorded at estimated fair value at the March 1, 2016
8
acquisition date, and there is no allowance for loan losses associated with these loans as of December 31, 2016. The unamortized acquisition date fair value adjustment related to these loans at December 31, 2016 was approximately $7,447, or 1.8% of the related loan balances.
The specific loan loss allowance (impaired loans) for both originated loans and acquired loans is the aggregate of the results of individual analyses prepared for each one of the impaired loans, excluding PCI loans.
Total impaired loans at December 31, 2016 are equal to $20,253 ($18,157 originated impaired loans plus $2,096 acquired impaired loans). Approximately $11,030 of the Company’s impaired loans (54%) are accruing performing loans. This group of impaired loans is not included in the Company’s non-performing loans or non-performing assets categories. Included in impaired loans are $13,105 of troubled debt restructuings (“TDRs”). Of this amount $11,030 are performing pursuant to their modified terms, and $2,075 are not performing and have been placed on non-accrual status and included in non performing loans (“NPLs”). Accounting standards require TDRs to be included in our impaired loans, whether they are performing or not performing.
PCI loans are accounted for pursuant to ASC Topic 310-30. PCI loan pools are evaluated for impairment each quarter. If a pool is impaired, an allowance for loan loss is recorded.
Management believes the Company’s allowance for loan losses is adequate at December 31, 2016. The Company recognized net charge-offs during the current quarter due to a partial charge-off of approximately $686 on one new impaired loan. During the prior three quarters, the Company had recognized net recoveries as focus has been placed on maximizing recoveries from charged-off loans and judgements. 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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
as of or for the quarter ending | 12/31/2016 |
| 9/30/2016 |
| 6/30/2016 |
| 3/31/2016 |
| 12/31/2015 |
| |||||
Loans, excluding PCI loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance at beginning of period | $ | 25,274 |
| $ | 24,066 |
| $ | 23,002 |
| $ | 22,143 |
| $ | 22,586 |
|
Charge-offs |
| (1,105 | ) |
| (821 | ) |
| (326 | ) |
| (495 | ) |
| (1,266 | ) |
Recoveries | 381 |
| 939 |
| 465 |
| 843 |
| 339 |
| |||||
Net (charge-offs) recoveries |
| (724 | ) |
| 118 |
|
| 139 |
|
| 348 |
|
| (927 | ) |
Provision for loan losses |
| 2,019 |
|
| 1,090 |
| 925 |
| 511 |
| 484 |
| |||
Allowance at end of period for loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other than PCI loans | $ | 26,569 |
| $ | 25,274 |
| $ | 24,066 |
| $ | 23,002 |
| $ | 22,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PCI loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance at beginning of period | $ | 225 |
| $ | 106 |
| $ | 120 |
| $ | 121 |
| $ | 62 |
|
Charge-offs | --- |
|
| (66 | ) | --- |
| --- |
| --- |
| ||||
Recoveries | --- |
| --- |
| --- |
| --- |
| --- |
| |||||
Net charge-offs | --- |
|
| (66 | ) | --- |
| --- |
| --- |
| ||||
Provision (recovery) for loan losses |
| 247 |
|
| 185 |
|
| (14 | ) |
| (1 | ) |
| 59 |
|
Allowance at end of period for |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PCI loans |
| 472 |
| $ | 225 |
|
| 106 |
|
| 120 |
|
| 121 |
|
Total allowance at end of period | $ | 27,041 |
| $ | 25,499 |
| $ | 24,172 |
| $ | 23,122 |
| $ | 22,264 |
|
9
The following table summarizes the Company’s loan portfolio and related allowance for loan losses as a percentage of the loan portfolio segment presented as of the end of the previous five quarters.
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the quarter ended: | 12/31/2016 |
| 9/30/2016 |
| 6/30/2016 |
| 3/31/2016 |
| 12/31/2015 |
| |||||
Troubled debt restructure (“TDRs”) (note 1) | $ | 13,105 |
| $ | 13,592 |
| $ | 14,895 |
| $ | 15,350 |
| $ | 15,127 |
|
Impaired loans that were not TDRs |
| 7,148 |
|
| 5,924 |
|
| 9,989 |
|
| 12,564 |
|
| 8,048 |
|
Total impaired loans |
| 20,253 |
|
| 19,516 |
|
| 24,884 |
|
| 27,914 |
|
| 23,175 |
|
Originated non-impaired loans |
| 2,232,474 |
|
| 2,051,764 |
|
| 1,885,349 |
|
| 1,768,628 |
|
| 1,664,056 |
|
Acquired non-impaired loans |
| 991,096 |
|
| 1,025,914 |
|
| 1,067,875 |
|
| 1,115,163 |
|
| 696,017 |
|
Total Non-PCI loans |
| 3,243,823 |
|
| 3,097,194 |
|
| 2,978,108 |
|
| 2,911,705 |
|
| 2,383,248 |
|
Total PCI loans |
| 185,924 |
|
| 197,288 |
|
| 216,859 |
|
| 236,516 |
|
| 210,528 |
|
Total loans | $ | 3,429,747 |
| $ | 3,294,482 |
| $ | 3,194,967 |
| $ | 3,148,221 |
| $ | 2,593,776 |
|
ALLL for Non-PCI loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General loan loss allowance- originated loans | $ | 22,934 |
| $ | 21,426 |
| $ | 19,682 |
| $ | 18,417 |
| $ | 17,326 |
|
General loan loss allowance- acquired loans |
| 2,940 |
|
| 3,112 |
|
| 3,291 |
|
| 3,501 |
|
| 3,737 |
|
Specific loan loss allowance- impaired loans |
| 695 |
| 736 |
|
| 1,093 |
|
| 1,084 |
|
| 1,080 |
| |
Total allowance for loan losses (note 2) | $ | 26,569 |
| $ | 25,274 |
| $ | 24,066 |
| $ | 23,002 |
| $ | 22,143 |
|
ALLL as a percentage of period end loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Originated non-impaired loans |
| 1.03 | % |
| 1.04 | % |
| 1.04 | % |
| 1.04 | % |
| 1.04 | % |
Total Acquired non-impaired loans (note 3) |
| 0.30 | % |
| 0.30 | % |
| 0.31 | % |
| 0.31 | % |
| 0.54 | % |
Total impaired loans |
| 3.43 | % |
| 3.77 | % |
| 4.39 | % |
| 3.88 | % |
| 4.66 | % |
note 1: | The Company has approximately $13,105 of TDRs. Of this amount $11,030 are performing pursuant to their modified terms, and $2,075 are not performing and have been placed on non-accrual status and included in non performing loans (“NPLs”). Current accounting standards require TDRs to be included in our impaired loans, whether they are performing or not performing. Only non performing TDRs are included in NPLs. |
note 2: | Excludes PCI loans. |
note 3: | Non-impaired loans acquired pursuant to the March 1, 2016 acquisition of Hometown of Homestead Banking Company and Community Bank of South Florida, Inc. are included in the December 31, 2016 acquired loan balances in the table above. These loans were recorded at estimated fair value as of the acquisition date, and there is no related allowance for loan losses associated with these loans, resulting in an overall combined lower percentage when compared to previous quarter ends. |
The Company defines NPLs as non-accrual loans plus loans past due 90 days or more and still accruing interest. NPLs do not include PCI loans. PCI loans are accounted for pursuant to ASC Topic 310-30. NPLs as a percentage of total Non-PCI loans were 0.59% at December 31, 2016 compared to 0.64% at September 30, 2016.
Non-performing assets (“NPAs”) (which the Company defines as NPLs, 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 $26,207 at December 31, 2016, compared to $28,879 at September 30, 2016. The decline resulted from sales of properties reducing the OREO balances by approximately $1.9 million. NPAs as a percentage of total assets was 0.52% at December 31, 2016 compared to 0.58% at September 30, 2016. NPAs as a percentage of loans plus OREO and other repossessed assets, excluding PCI loans, was 0.81% at December 31, 2016 compared to 0.93% at September 30, 2016.
10
The table below summarizes selected credit quality data for the periods indicated.
Selected credit quality ratios (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the quarter ended: | 12/31/2016 |
| 9/30/2016 |
| 6/30/2016 |
| 3/31/2016 |
| 12/31/2015 |
| |||||
Non-accrual loans (note 1) | $ | 19,003 |
| $ | 19,704 |
| $ | 25,035 |
| $ | 24,865 |
| $ | 20,833 |
|
Past due loans 90 days or more |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and still accruing interest (note 1) | --- |
| --- |
| --- |
| --- |
| --- |
| |||||
Total non-performing loans (“NPLs”) (note 1) |
| 19,003 |
|
| 19,704 |
|
| 25,035 |
|
| 24,865 |
|
| 20,833 |
|
Other real estate owned (“OREO”) |
| 7,090 |
|
| 9,005 |
|
| 12,311 |
|
| 15,937 |
|
| 11,196 |
|
Repossessed assets other than real estate (note 1) | 114 |
| 170 |
| 104 |
| 86 |
| 145 |
| |||||
Total non-performing assets | $ | 26,207 |
| $ | 28,879 |
| $ | 37,450 |
| $ | 40,888 |
| $ | 32,174 |
|
Non-performing loans as percentage of total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
loans excluding PCI loans |
| 0.59 | % |
| 0.64 | % |
| 0.84 | % |
| 0.85 | % |
| 0.87 | % |
Non-performing assets as percentage of total assets |
| 0.52 | % |
| 0.58 | % |
| 0.75 | % |
| 0.82 | % |
| 0.80 | % |
Non-performing assets as percentage of loans and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OREO plus other repossessed assets (note 1) |
| 0.81 | % |
| 0.93 | % |
| 1.25 | % |
| 1.40 | % |
| 1.34 | % |
Loans past due 30 thru 89 days and accruing interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
as a percentage of total loans (note 1) |
| 0.58 | % |
| 0.36 | % |
| 0.41 | % |
| 0.40 | % |
| 0.62 | % |
Net charge-offs (recovery) (note 1) | $ | 724 |
| $ | (118 | ) | $ | (139 | ) | $ | (348 | ) | $ | 927 |
|
Net charge-offs (recovery) as a percentage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of average loans for the period (note 1) |
| 0.02 | % |
| 0.00 | % |
| 0.00 | % |
| -0.01 | % |
| 0.04 | % |
Net (recovery) charge-offs as a percentage of average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
loans for the period on an annualized basis (note 1) |
| 0.09 | % |
| -0.02 | % |
| -0.02 | % |
| -0.05 | % |
| 0.16 | % |
Allowance for loan losses as percentage of NPLs (note 1) |
| 140 | % |
| 128 | % |
| 96 | % |
| 93 | % |
| 106 | % |
note 1: Excludes PCI loans.
11
CORRESPONDENT BANKING AND CAPITAL MARKETS SEGMENT
The condensed quarterly results of the Company’s correspondent banking and capital markets segment are presented below.
Quarterly Condensed Segment Information - Correspondent banking and capital markets division (unaudited) |
| ||||||||||||||
For the quarter ended: | 12/31/2016 |
| 9/30/2016 |
| 6/30/2016 |
| 3/31/2016 |
| 12/31/2015 |
| |||||
Net interest income | $ | 1,850 |
| $ | 1,625 |
| $ | 1,555 |
| $ | 1,802 |
| $ | 1,716 |
|
Provision for loan losses |
| 24 |
|
| 28 |
|
| (24 | ) |
| (52 | ) |
| (4 | ) |
Total non-interest income (note 1) |
| 8,091 |
|
| 7,528 |
|
| 9,291 |
|
| 8,775 |
|
| 6,241 |
|
Total non-interest expense (note 2) |
| (5,987 | ) |
| (5,456 | ) |
| (6,159 | ) |
| (5,782 | ) |
| (5,094 | ) |
Income tax provision |
| (1,535 | ) |
| (1,437 | ) |
| (1,799 | ) |
| (1,830 | ) |
| (1,103 | ) |
Net income | $ | 2,443 |
| $ | 2,288 |
| $ | 2,864 |
| $ | 2,913 |
| $ | 1,756 |
|
Contribution to diluted earnings per share | $ | 0.05 |
| $ | 0.05 |
| $ | 0.06 |
| $ | 0.06 |
| $ | 0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocation of indirect expense net of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
inter-company earnings credit, net of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income tax benefit (note 3) | $ | (280 | ) | $ | (244 | ) | $ | (232 | ) | $ | (340 | ) | $ | (174 | ) |
Contribution to diluted earnings per share after |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
deduction of allocated indirect expenses | $ | 0.04 |
| $ | 0.04 |
| $ | 0.05 |
| $ | 0.06 |
| $ | 0.03 |
|
note 1: | The primary component in this line item is gross commissions earned on bond sales, fees from hedging services, loan brokering fees and related consulting fees which were $7,016, $6,381, $8,049, $7,371and $5,254 for 4Q16, 3Q16, 2Q16, 1Q16 and 4Q15, respectively. The fee income in this category is based on sales volume in any particular period and is therefore volatile between comparable periods. The remaining non interest income items in this category, which are less volatile, include fees from safe-keeping activities, bond accounting services, asset/liability consulting related activities, international wires, clearing and corporate checking account services, and other correspondent banking related revenue and fees. |
note 2: | A significant portion of these expenses are variable in nature and are a derivative of the income from bond sales, hedging services, brokering loans sales and related consulting services identified in note 1 above. The variable expenses related to these fees identified in note 1 above were $3,133, $2,908, $3,491, $3,352and $2,505 for 4Q16, 3Q16, 2Q16, 1Q16and 4Q15, respectively. Expenses in this line item do not include any indirect support allocation costs. |
note 3: | A portion of the cost of the Company’s indirect departments such as human resources, accounting, deposit operations, item processing, information technology, compliance and others have been allocated to the correspondent banking and capital markets division based on management’s estimates. In addition, an inter-company earnings credit is allocated to the segment for services provided to the commercial bank segment, also based on management’s estimates and judgment. |
12
CONDENSED CONSOLIDATED BALANCE SHEETS
Presented below are condensed consolidated balance sheets and average balance sheets for the periods indicated.
Condensed Consolidated Balance Sheets (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the quarter ended: | 12/31/2016 |
| 9/30/2016 |
| 6/30/2016 |
| 3/31/2016 |
| 12/31/2015 |
| |||||
Cash and due from banks | $ | 66,368 |
| $ | 37,460 |
| $ | 60,522 |
| $ | 65,560 |
| $ | 50,902 |
|
Fed funds sold and Fed Res Bank deposits |
| 109,286 |
|
| 161,406 |
|
| 223,533 |
|
| 296,459 |
|
| 101,580 |
|
Trading securities |
| 12,383 |
|
| 2,166 |
| --- |
|
| 2,719 |
|
| 2,107 |
| |
Investment securities, available for sale |
| 740,702 |
|
| 761,648 |
|
| 744,575 |
|
| 707,573 |
|
| 604,739 |
|
Investment securities, held to maturity |
| 250,543 |
|
| 263,692 |
|
| 267,082 |
|
| 256,849 |
|
| 272,840 |
|
Loans held for sale |
| 2,285 |
|
| 2,333 |
|
| 4,329 |
|
| 2,186 |
|
| 1,529 |
|
PCI loans |
| 185,924 |
|
| 197,288 |
|
| 216,859 |
|
| 236,516 |
|
| 210,528 |
|
Loans |
| 3,243,823 |
|
| 3,097,194 |
|
| 2,978,108 |
|
| 2,911,705 |
|
| 2,383,248 |
|
Allowance for loan losses |
| (27,041 | ) |
| (25,499 | ) |
| (24,172 | ) |
| (23,122 | ) |
| (22,264 | ) |
FDIC indemnification assets | --- |
| --- |
| --- |
| --- |
|
| 25,795 |
| ||||
Premises and equipment, net |
| 114,815 |
|
| 114,567 |
|
| 116,129 |
|
| 116,734 |
|
| 101,821 |
|
Goodwill |
| 106,028 |
|
| 105,492 |
|
| 105,492 |
|
| 105,492 |
|
| 76,739 |
|
Core deposit intangible |
| 15,510 |
|
| 16,267 |
|
| 17,023 |
|
| 17,803 |
|
| 12,164 |
|
Bank owned life insurance |
| 98,424 |
|
| 97,767 |
|
| 97,109 |
|
| 86,455 |
|
| 85,890 |
|
OREO covered by FDIC loss share agreements | --- |
| --- |
| --- |
| --- |
|
| 9,629 |
| ||||
OREO not covered by FDIC loss share agreements |
| 7,090 |
|
| 9,005 |
|
| 12,311 |
|
| 15,937 |
|
| 1,567 |
|
Deferred income tax asset, net |
| 63,208 |
|
| 58,614 |
|
| 62,774 |
|
| 69,470 |
|
| 46,220 |
|
Other assets |
| 89,211 |
|
| 115,112 |
|
| 113,615 |
|
| 101,319 |
|
| 57,683 |
|
TOTAL ASSETS | $ | 5,078,559 |
| $ | 5,014,512 |
| $ | 4,995,289 |
| $ | 4,969,655 |
| $ | 4,022,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits | $ | 4,152,544 |
| $ | 4,055,934 |
| $ | 4,132,136 |
| $ | 4,092,167 |
| $ | 3,215,178 |
|
Federal funds purchased |
| 261,986 |
|
| 258,329 |
|
| 174,116 |
|
| 225,298 |
|
| 200,250 |
|
Other borrowings |
| 54,385 |
|
| 52,788 |
|
| 56,432 |
|
| 57,906 |
|
| 76,565 |
|
Other liabilities |
| 57,187 |
|
| 94,690 |
|
| 94,634 |
|
| 74,823 |
|
| 40,210 |
|
Common stockholders’ equity |
| 552,457 |
|
| 552,771 |
|
| 537,971 |
|
| 519,461 |
|
| 490,514 |
|
TOTAL LIABILITIES AND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY | $ | 5,078,559 |
| $ | 5,014,512 |
| $ | 4,995,289 |
| $ | 4,969,655 |
| $ | 4,022,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Average Balance Sheets (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For quarter ended: | 12/31/2016 |
| 9/30/2016 |
| 6/30/2016 |
| 3/31/2016 |
| 12/31/2015 |
| |||||
Federal funds sold and other | $ | 230,418 |
| $ | 187,906 |
| $ | 272,635 |
| $ | 225,302 |
| $ | 211,112 |
|
Security investments |
| 1,021,626 |
|
| 1,035,090 |
|
| 1,001,511 |
|
| 889,488 |
|
| 822,386 |
|
PCI loans |
| 192,755 |
|
| 207,406 |
|
| 225,584 |
|
| 214,998 |
|
| 222,685 |
|
Loans |
| 3,160,914 |
|
| 3,037,333 |
|
| 2,949,651 |
|
| 2,569,240 |
|
| 2,363,060 |
|
Allowance for loan losses |
| (25,679 | ) |
| (24,209 | ) |
| (23,173 | ) |
| (22,616 | ) |
| (22,078 | ) |
All other assets |
| 530,848 |
|
| 559,841 |
|
| 556,040 |
|
| 479,454 |
|
| 458,087 |
|
TOTAL ASSETS | $ | 5,110,882 |
| $ | 5,003,367 |
| $ | 4,982,248 |
| $ | 4,355,866 |
| $ | 4,055,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits- interest bearing | $ | 2,699,762 |
| $ | 2,678,638 |
| $ | 2,626,668 |
| $ | 2,266,700 |
| $ | 2,072,838 |
|
Deposits- non interest bearing |
| 1,454,963 |
|
| 1,445,140 |
|
| 1,506,762 |
|
| 1,282,422 |
|
| 1,194,763 |
|
Federal funds purchased |
| 273,691 |
|
| 181,037 |
|
| 188,663 |
|
| 197,335 |
|
| 203,413 |
|
Other borrowings |
| 52,921 |
|
| 54,699 |
|
| 59,126 |
|
| 55,337 |
|
| 51,131 |
|
Other liabilities |
| 75,548 |
|
| 97,830 |
|
| 71,935 |
|
| 56,650 |
|
| 48,969 |
|
Stockholders’ equity |
| 553,997 |
|
| 546,023 |
|
| 529,094 |
|
| 497,422 |
|
| 484,138 |
|
TOTAL LIABILITIES AND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY | $ | 5,110,882 |
| $ | 5,003,367 |
| $ | 4,982,248 |
| $ | 4,355,866 |
| $ | 4,055,252 |
|
13
Condensed Consolidated Earnings Statement (unaudited)
For quarter ended: | 12/31/2016 |
| 9/30/2016 |
| 6/30/2016 |
| 3/31/2016 |
| 12/31/2015 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans | $ | 44,085 |
| $ | 41,445 |
| $ | 40,977 |
| $ | 37,118 |
| $ | 35,508 |
|
Investments |
| 5,531 |
|
| 5,746 |
|
| 5,710 |
|
| 5,842 |
|
| 5,187 |
|
Federal funds sold and other |
| 539 |
| 512 |
| 622 |
| 538 |
| 403 |
| ||||
Total interest income |
| 50,155 |
|
| 47,703 |
|
| 47,309 |
|
| 43,498 |
|
| 41,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
| 1,892 |
|
| 1,821 |
|
| 1,740 |
|
| 1,481 |
|
| 1,351 |
|
Securities sold under agreement to repurchase |
| 23 |
| 25 |
| 28 |
| 27 |
| 32 |
| ||||
Federal funds purchased |
| 393 |
| 240 |
| 250 |
| 271 |
| 190 |
| ||||
Corporate debentures |
| 313 |
| 298 |
| 294 |
| 244 |
| 246 |
| ||||
Total interest expense |
| 2,621 |
|
| 2,384 |
|
| 2,312 |
|
| 2,023 |
|
| 1,819 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
| 47,534 |
|
| 45,319 |
|
| 44,997 |
|
| 41,475 |
|
| 39,279 |
|
Provision for loan losses |
| 2,266 |
|
| 1,275 |
| 911 |
| 510 |
| 543 |
| |||
Net interest income after loan loss provision |
| 45,268 |
|
| 44,044 |
|
| 44,086 |
|
| 40,965 |
|
| 38,736 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non interest income (see page 15) |
| 17,156 |
|
| 15,681 |
|
| 16,971 |
|
| 14,561 |
|
| 9,666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and employee benefits |
| 24,049 |
|
| 22,418 |
|
| 22,959 |
|
| 21,455 |
|
| 18,977 |
|
Occupancy expense |
| 2,767 |
|
| 2,414 |
|
| 2,477 |
|
| 2,147 |
|
| 1,986 |
|
Depreciation of premises and equipment |
| 1,659 |
|
| 1,629 |
|
| 1,588 |
|
| 1,497 |
|
| 1,442 |
|
Data processing expense |
| 1,814 |
|
| 1,761 |
|
| 1,765 |
|
| 1,527 |
|
| 1,443 |
|
Legal, audit and other professional fees |
| 901 |
| 904 |
| 949 |
| 903 |
| 750 |
| ||||
Amortization of intangibles |
| 791 |
| 791 |
| 814 |
| 678 |
| 616 |
| ||||
Credit related expense |
| 624 |
| 187 |
| 611 |
| 359 |
| 309 |
| ||||
FDIC credit related expenses | --- |
| --- |
| --- |
| --- |
| 997 |
| |||||
Merger and acquisition related expenses |
| 272 |
| --- |
| --- |
|
| 11,172 |
| 524 |
| |||
Termination of FDIC loss share agreements | --- |
| --- |
| --- |
|
| 17,560 |
| --- |
| ||||
Impairment (recovery) bank property held for sale, net |
| 116 |
| 616 |
|
| (38 | ) | 456 |
| 94 |
| |||
All other expenses |
| 5,191 |
|
| 5,675 |
|
| 5,924 |
|
| 5,099 |
|
| 4,948 |
|
Total non interest expenses |
| 38,184 |
|
| 36,395 |
|
| 37,049 |
|
| 62,853 |
|
| 32,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before provision for income taxes |
| 24,240 |
|
| 23,330 |
|
| 24,008 |
|
| (7,327 | ) |
| 16,316 |
|
Provision for income taxes |
| 8,213 |
|
| 7,946 |
|
| 8,274 |
|
| (2,523 | ) |
| 5,920 |
|
Net income (loss) | $ | 16,027 |
| $ | 15,384 |
| $ | 15,734 |
| $ | (4,804 | ) | $ | 10,396 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share -diluted | $ | 0.33 |
| $ | 0.32 |
| $ | 0.32 |
| $ | (0.10 | ) | $ | 0.23 |
|
14
NON INTEREST INCOME AND NON INTEREST EXPENSES
The table below summarizes the Company’s non-interest income for the periods indicated.
Quarterly Condensed Consolidated Non Interest Income (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the quarter ended: | 12/31/2016 |
| 9/30/2016 |
| 6/30/2016 |
| 3/31/2016 |
| 12/31/2015 |
| |||||
Correspondent banking and capital markets division (1) | $ | 7,016 |
| $ | 6,381 |
| $ | 8,049 |
| $ | 7,371 |
| $ | 5,254 |
|
Other correspondent banking related revenue (2) |
| 1,075 |
|
| 1,147 |
|
| 1,242 |
|
| 1,404 |
| 987 |
| |
Wealth management related revenue |
| 815 |
| 892 |
| 795 |
| 735 |
| 913 |
| ||||
Service charges on deposit accounts |
| 3,729 |
|
| 3,770 |
|
| 3,329 |
|
| 2,736 |
|
| 2,576 |
|
Debit, prepaid, ATM and merchant card related fees |
| 2,009 |
|
| 2,017 |
|
| 2,182 |
|
| 2,046 |
|
| 1,730 |
|
BOLI income |
| 657 |
| 658 |
| 654 |
| 565 |
| 574 |
| ||||
Other service charges and fees |
| 1,125 |
| 736 |
| 720 |
| 466 |
| 419 |
| ||||
Gain on sale of securities available for sale | --- |
| 13 |
| --- |
| --- |
| --- |
| |||||
Subtotal | $ | 16,426 |
| $ | 15,614 |
| $ | 16,971 |
| $ | 15,323 |
| $ | 12,453 |
|
Gain on early extinguishment of debt | --- |
| --- |
| --- |
| 308 |
| --- |
| |||||
Gain on sale of bank properties held for sale |
| 730 |
| 67 |
| --- |
| --- |
| --- |
| ||||
FDIC indemnification asset – amortization (see explanation below) | --- |
| --- |
| --- |
|
| (1,166 | ) |
| (3,420 | ) | |||
FDIC indemnification income | --- |
| --- |
| --- |
| 96 |
| 633 |
| |||||
Total Non Interest Income | $ | 17,156 |
| $ | 15,681 |
| $ | 16,971 |
| $ | 14,561 |
| $ | 9,666 |
|
note 1: | Includes gross commissions earned on bond sales, fees from hedging services, loan brokering fees and related consulting fees. The fee income in this category is based on sales volume in any particular period and is therefore volatile between comparable periods. |
note 2: | Includes fees from safe-keeping activities, bond accounting services, asset/liability consulting services, international wires, clearing and corporate checking account services and other correspondent banking related revenue and fees. The fees included in this category are less volatile than those described above in note 1. |
15
The table below summarizes the Company’s non-interest expense for the periods indicated.
Quarterly Condensed Consolidated Non Interest Expense (unaudited) |
| ||||||||||||||
For the quarter ended: | 12/31/2016 |
| 9/30/2016 |
| 6/30/2016 |
| 3/31/2016 |
| 12/31/2015 |
| |||||
Employee salaries and wages | $ | 17,757 |
| $ | 17,074 |
| $ | 17,499 |
| $ | 16,137 |
| $ | 14,344 |
|
Employee incentive/bonus compensation accrued |
| 2,768 |
|
| 1,610 |
|
| 1,548 |
|
| 1,259 |
|
| 1,854 |
|
Employee equity based compensation expense |
| 1,172 |
|
| 1,109 |
|
| 1,062 |
|
| 1,080 |
| 866 |
| |
Deferred compensation expense | 141 |
| 148 |
| 160 |
| 160 |
| 148 |
| |||||
Health insurance and other employee benefits |
| 1,379 |
|
| 1,537 |
|
| 1,546 |
|
| 1,260 |
| 983 |
| |
Payroll taxes | 960 |
| 999 |
|
| 1,111 |
|
| 1,423 |
| 734 |
| |||
401K employer contributions | 423 |
| 470 |
| 479 |
| 477 |
| 358 |
| |||||
Other employee related expenses | 399 |
| 322 |
| 291 |
| 291 |
| 314 |
| |||||
Incremental direct cost of loan origination |
| (950 | ) |
| (851 | ) |
| (737 | ) |
| (632 | ) |
| (624 | ) |
Total salaries, wages and employee benefits |
| 24,049 |
|
| 22,418 |
|
| 22,959 |
|
| 21,455 |
|
| 18,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on sale of OREO |
| (258 | ) |
| (558 | ) |
| (554 | ) |
| (158 | ) |
| 39 |
|
Loss on sale of FDIC covered OREO | --- |
| --- |
| --- |
| --- |
|
| 491 |
| ||||
Valuation write down of OREO |
| 220 |
|
| 237 |
|
| 392 |
|
| 22 |
|
| 22 |
|
Valuation write down of FDIC covered OREO | --- |
| --- |
| --- |
| --- |
|
| 169 |
| ||||
Loss (gain) on repossessed assets other than real estate |
| 13 |
|
| (4 | ) |
| 31 |
|
| 6 |
|
| (7 | ) |
Foreclosure and repossession related expenses |
| 649 |
|
| 512 |
|
| 742 |
|
| 489 |
|
| 255 |
|
Foreclosure and repo expense, FDIC | --- |
| --- |
| --- |
| --- |
|
| 337 |
| ||||
Total credit related expenses |
| 624 |
|
| 187 |
|
| 611 |
|
| 359 |
|
| 1,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy expense |
| 2,767 |
|
| 2,414 |
|
| 2,477 |
|
| 2,147 |
|
| 1,986 |
|
Depreciation of premises and equipment |
| 1,659 |
|
| 1,629 |
|
| 1,588 |
|
| 1,497 |
|
| 1,442 |
|
Supplies, stationary and printing | 320 |
| 341 |
| 380 |
| 299 |
| 338 |
| |||||
Marketing expenses | 909 |
| 700 |
| 826 |
| 690 |
| 668 |
| |||||
Data processing expenses |
| 1,814 |
|
| 1,761 |
|
| 1,765 |
|
| 1,527 |
|
| 1,443 |
|
Legal, auditing and other professional fees | 901 |
| 904 |
| 949 |
| 903 |
| 750 |
| |||||
Bank regulatory related expenses | 779 |
| 863 |
| 968 |
| 810 |
| 606 |
| |||||
Postage and delivery | 420 |
| 423 |
| 486 |
| 355 |
| 337 |
| |||||
ATM and debit card related expenses | 713 |
| 725 |
| 816 |
| 596 |
| 495 |
| |||||
Amortization of intangibles | 791 |
| 791 |
| 814 |
| 678 |
| 616 |
| |||||
Internet and telephone banking | 651 |
| 559 |
| 628 |
| 564 |
| 538 |
| |||||
Correspondent account and Federal Reserve charges | 186 |
| 191 |
| 203 |
| 176 |
| 155 |
| |||||
Conferences, seminars, education and training | 202 |
| 155 |
| 102 |
| 133 |
| 142 |
| |||||
Director fees | 150 |
| 134 |
| 149 |
| 209 |
| 176 |
| |||||
Travel expenses | 158 |
| 153 |
| 119 |
| 79 |
| 117 |
| |||||
Other expenses |
| 703 |
|
| 1,431 |
|
| 1,247 |
|
| 1,188 |
|
| 1,376 |
|
Subtotal |
| 37,796 |
|
| 35,779 |
|
| 37,087 |
|
| 33,665 |
|
| 31,468 |
|
Impairment (recovery) on bank property held for sale | 116 |
| 616 |
|
| (38 | ) | 456 |
| 94 |
| ||||
Merger and acquisition related expenses | 272 |
| --- |
| --- |
|
| 11,172 |
| 524 |
| ||||
Termination of FDIC loss share agreements | --- |
| --- |
| --- |
|
| 17,560 |
| --- |
| ||||
Total Non Interest Expense | $ | 38,184 |
| $ | 36,395 |
| $ | 37,049 |
| $ | 62,853 |
| $ | 32,086 |
|
Note: Certain prior period amounts have been reclassified to conform to the current period presentation format.
16
Explanation of Certain Unaudited Non-GAAP Financial Measures
This press release contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). The financial highlights provide reconciliations between GAAP interest income, net interest income and tax equivalent basis interest income and net interest income, return on average equity, total stockholders’ equity and tangible common equity, and the efficiency ratio. Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance. The Company believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently. The Company provides reconciliations between GAAP and these non-GAAP measures. These disclosures should not be considered an alternative to GAAP.
Reconciliation of GAAP to non-GAAP Measures (unaudited):
4Q16 |
| 3Q16 |
| 2Q16 |
|
|
|
|
|
|
| ||||
Interest income, as reported (GAAP) | $ | 50,155 |
| $ | 47,703 |
| $ | 47,309 |
|
|
|
|
|
|
|
tax equivalent adjustments |
| 1,036 |
| 949 |
| 805 |
|
|
|
|
|
|
| ||
Interest income (tax equivalent) | $ | 51,191 |
| $ | 48,652 |
| $ | 48,114 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income, as reported (GAAP) | $ | 47,534 |
| $ | 45,319 |
| $ | 44,997 |
|
|
|
|
|
|
|
tax equivalent adjustments |
| 1,036 |
| 949 |
| 805 |
|
|
|
|
|
|
| ||
Net interest income (tax equivalent) | $ | 48,570 |
| $ | 46,268 |
| $ | 45,802 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the quarter ended | 12/31/2016 |
| 9/30/2016 |
| 6/30/2016 |
| 3/31/2016 |
| 12/31/2015 |
| |||||
Net income (GAAP) | $ | 16,027 |
| $ | 15,384 |
| $ | 15,734 |
| $ | (4,804 | ) | $ | 10,396 |
|
Amortization of intangibles |
| 791 |
|
| 791 |
|
| 814 |
|
| 678 |
|
| 616 |
|
Tax effected using the effective tax rate for the period presented |
| (268 | ) |
| (269 | ) |
| (281 | ) |
| (233 | ) |
| (224 | ) |
Adjusted net income | $ | 16,550 |
| $ | 15,906 |
| $ | 16,267 |
| $ | (4,359 | ) | $ | 10,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders' equity (GAAP) | $ | 553,997 |
| $ | 546,023 |
| $ | 529,094 |
| $ | 497,422 |
| $ | 484,138 |
|
Average goodwill |
| (105,760 | ) |
| (105,492 | ) |
| (105,492 | ) |
| (91,116 | ) |
| (76,739 | ) |
Average core deposit intangible |
| (15,889 | ) |
| (16,645 | ) |
| (17,413 | ) |
| (14,984 | ) |
| (12,454 | ) |
Average other intangibles |
| (759 | ) |
| (751 | ) |
| (785 | ) |
| (820 | ) |
| (855 | ) |
Average tangible equity | $ | 431,589 |
| $ | 423,135 |
| $ | 405,404 |
| $ | 390,502 |
| $ | 394,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible equity (annualized) |
| 15.26 | % |
| 14.95 | % |
| 16.14 | % |
| -4.49 | % |
| 10.86 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 12/31/2016 |
| 9/30/2016 |
| 6/30/2016 |
| 3/31/2016 |
| 12/31/2015 |
| |||||
Total stockholders' equity (GAAP) | $ | 552,457 |
| $ | 552,771 |
| $ | 537,971 |
| $ | 519,461 |
| $ | 490,514 |
|
Goodwill |
| (106,028 | ) |
| (105,492 | ) |
| (105,492 | ) |
| (105,492 | ) |
| (76,739 | ) |
Cored deposit intangible |
| (15,510 | ) |
| (16,267 | ) |
| (17,023 | ) |
| (17,803 | ) |
| (12,164 | ) |
Other intangibles |
| (784 | ) |
| (733 | ) |
| (768 | ) |
| (802 | ) |
| (837 | ) |
Tangible common equity | $ | 430,135 |
| $ | 430,279 |
| $ | 414,688 |
| $ | 395,364 |
| $ | 400,774 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets | $ | 5,078,559 |
| $ | 5,014,512 |
| $ | 4,995,289 |
| $ | 4,969,655 |
| $ | 4,022,717 |
|
Goodwill |
| (106,028 | ) |
| (105,492 | ) |
| (105,492 | ) |
| (105,492 | ) |
| (76,739 | ) |
Cored deposit intangible |
| (15,510 | ) |
| (16,267 | ) |
| (17,023 | ) |
| (17,803 | ) |
| (12,164 | ) |
Other intangibles |
| (784 | ) |
| (733 | ) |
| (768 | ) |
| (802 | ) |
| (837 | ) |
Total tangible assets | $ | 4,956,237 |
| $ | 4,892,020 |
| $ | 4,872,006 |
| $ | 4,845,558 |
| $ | 3,932,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets |
| 8.7 | % |
| 8.8 | % |
| 8.5 | % |
| 8.2 | % |
| 10.2 | % |
Common shares outstanding at period end |
| 48,147 |
|
| 48,017 |
|
| 47,996 |
|
| 47,943 |
|
| 45,459 |
|
Common tangible equity per common share | $ | 8.93 |
| $ | 8.96 |
| $ | 8.64 |
| $ | 8.25 |
| $ | 8.82 |
|
17
Explanation of Certain Unaudited Non-GAAP Financial Measures (continued)
For the quarter ended | 12/31/2016 |
| 9/30/2016 |
| 6/30/2016 |
| 3/31/2016 |
| 12/31/2015 |
| |||||
Non interest income (GAAP) | $ | 17,156 |
| $ | 15,681 |
| $ | 16,971 |
| $ | 14,561 |
| $ | 9,666 |
|
Nonrecurring income | --- |
| --- |
| --- |
|
| (308 | ) | --- |
| ||||
Adjusted non interest income |
| 17,156 |
|
| 15,681 |
|
| 16,971 |
|
| 14,253 |
|
| 9,666 |
|
Correspondent banking non interest income |
| (8,091 | ) |
| (7,528 | ) |
| (9,291 | ) |
| (8,775 | ) |
| (6,241 | ) |
Adjusted non interest income, ex. Correspondent | $ | 9,065 |
| $ | 8,153 |
| $ | 7,680 |
| $ | 5,478 |
| $ | 3,425 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income before provision (GAAP) | $ | 47,534 |
| $ | 45,319 |
| $ | 44,997 |
| $ | 41,475 |
| $ | 39,279 |
|
Total tax equivalent adjustment |
| 1,036 |
|
| 949 |
|
| 805 |
|
| 685 |
|
| 618 |
|
Adjusted net interest income |
| 48,570 |
|
| 46,268 |
|
| 45,802 |
|
| 42,160 |
|
| 39,897 |
|
Correspondent net interest income |
| (1,850 | ) |
| (1,625 | ) |
| (1,555 | ) |
| (1,802 | ) |
| (1,716 | ) |
Adjusted net interest income, ex. Correspondent | $ | 46,720 |
| $ | 44,643 |
| $ | 44,247 |
| $ | 40,358 |
| $ | 38,181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non interest expense (GAAP) | $ | 38,184 |
| $ | 36,395 |
| $ | 37,049 |
| $ | 62,853 |
| $ | 32,086 |
|
Nonrecurring expense | --- |
| --- |
| --- |
|
| (17,560 | ) | --- |
| ||||
Adjusted non interest expense | $ | 38,184 |
| $ | 36,395 |
| $ | 37,049 |
| $ | 45,293 |
| $ | 32,086 |
|
Correspondent banking non interest expense (note 1) |
| (6,443 | ) |
| (5,854 | ) |
| (6,537 | ) |
| (6,336 | ) |
| (5,378 | ) |
Adjusted non interest expense, ex. Correspondent | $ | 31,741 |
| $ | 30,541 |
| $ | 30,512 |
| $ | 38,957 |
| $ | 26,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
| 58.1 | % |
| 58.7 | % |
| 59.0 | % |
| 80.3 | % |
| 64.7 | % |
Efficiency ratio - excluding Correpondent |
| 56.9 | % |
| 57.8 | % |
| 58.8 | % |
| 85.0 | % |
| 64.2 | % |
note 1: | Correspondent banking non interest expense includes the allocation of indirect costs, net of inter-company earnings credit, before the effect of income taxes. |
About CenterState Banks, Inc.
The Company, headquartered in Winter Haven, Florida between Orlando and Tampa, is a financial holding company with one nationally chartered bank, CenterState Bank of Florida, N.A. Presently, the Company operates through its network of 68 branch banking offices located in 24 counties throughout Florida, providing traditional deposit and lending products and services to its commercial and retail customers. The Company also provides correspondent banking and capital market services to over 600 community banks nationwide.
For additional information contact John C. Corbett (CEO), Stephen D. Young (COO) or Jennifer Idell (CFO) at 863-293-4710.
“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 Securities Act of 1933 and the Securities Exchange Act of 1934. These statements related to future events, other future financial and operating performance, costs, revenues, economic conditions in our markets, loan performance, credit risks, collateral values and credit conditions, or business strategies, including expansion and acquisition activities 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, and actual results may differ from those set forth in the forward looking statements.
18
Forward-looking statements, with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance or achievements of the Company or the Bank to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. You should not expect us to update any forward-looking statements. All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2015, and otherwise in our SEC reports and filings.
19