Attached files
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| 8-K - FORM 8-K - CenterState Bank Corp | d8k.htm |
 Investor Presentation
December 2010 |
 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
$2.1 billion in assets
$1.7 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
Correspondent banking market |
 4
Merger and Corporate Structure
Merger of three national bank subsidiaries completed 12/10/10
Lead bank approximates $1.9 billion of combined total assets and
approximately 8%
Tier 1 leverage capital ratio
Remaining Corporate subsidiaries: Valrico State Bank and R4ALL,
Inc. R4ALL subsidiary presently warehousing approximately $29
million classified assets.
Carried at 80% of appraised values
Approximately 22% of classified loans are current
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. |
 Source: Raymond James
Carson Medlin
Florida Credit Environment
Florida economy
11.7% unemployment
Florida Real Estate Market
25% of mortgages in Florida are delinquent or in some stage of
foreclosure Florida real estate values continue to decrease.
Median price decreased 6% y/y in
September.
Florida’s total NPAs
increased in 3Q10; 5 of the 7 Florida regions had
increased NPAs.
Liquidation Approaches
Orderly liquidation
Note sales in wholesale debt market
Repossessed real estate auctions
Negotiated bulk sale
5 |
 Florida Economic Environment
6
Florida’s April 1 Population
United States and Florida Unemployment Rates
(seasonally adjusted)
Median Sales Price of Existing Homes
Source:
The
Florida
Legislature
Office
of
Economic
and
Demographic
Research
Economy Slowly Recovering
Florida growth rates are beginning an expected slow return to more
typical levels. But, drags are more persistent than past
events, and it will take years to climb out of the hole left by
the recession.
Overall…
The subsequent turnaround in Florida housing will be led by:
Low home prices that begin to attract buyers and clear the
inventory Long-run
sustainable
demand
caused
by
continued
population
growth
and
household
formation.
Florida’s unique
demographics and the aging of the baby-boom generation. |
 Credit Trends
7 |
 Loan Portfolio Composition
As of September 30, 2010
Excluding Covered Loans
$920 Million
8
*After
credit
mark
-
80%
FDIC
loss
share
first
dollar
loss.
Covered Loans*
$210 Million |
 Non-Performing Loans
Other Real Estate Owned
$56,399,000 (6.13% of total loans, excluding covered loans)
30% of NPLs
are current
76% of legal unpaid loan balance, net of specific reserves
$11,861,000
58% of legal unpaid loan balance at
repossession date
Residential
Real Estate
$16,729K
(102 loans)
Commercial
Real Estate
$26,259K
(52 loans)
Construction,
A&D, & Land
$12,421K
(52 loans)
Commercial
$440K
(17 loans)
Consumer / Other
$550K
(24 loans)
Commercial
Real Estate
(18)
$5,737K
Mobile Homes
w/ Land
(6)
$151K
Vacant Land
( various acreages)
$1,796K
Single Family Homes
(29)
$3,037K
Residential Lots
(48)
$1,140K
Data as of 9/30/10
Non Performing Loans and OREO
(excluding covered loans and OREO)
9 |
 FDIC Investments –
Consolidation Story
July 16, 2010 –
Olde
Cypress Community Bank, Clewiston, Florida
August 20, 2010 –
Independent National Bank, Ocala, Florida
August 20, 2010 –
Community National Bank, Bartow, Florida
1Q 2011 –
TD transaction, Palatka, Florida
10
Capital required to
support acquired
assets at 8%
$12.5 M
$12.4 M
$5.2 M
$9.0M
$39.1 M
July 27, 2010 Capital Raise, net $32.8 M
Total
January 30, 2009 –
Ocala National Bank, Ocala, Florida |
 11
Ocala National Bank
Conversion completed 2009, core deposits growing; efficiencies
obtained. Independent National Bank, Ocala
Conversion scheduled for 5/2011; core deposit base stable; efficiencies
expected to be realized in 2Q11.
Olde
Cypress Community Bank, Clewiston
Conversion scheduled for 7/2011; core deposit base stable; efficiencies
expected to be realized 3Q11
Community National Bank, Bartow
Conversion scheduled for 9/2011; core deposit base stable; efficiencies
expected to be realized 4Q11
The efficiencies gained from the last three FDIC acquisitions should be
approximately $3million annually compared to present run rate
but will not be fully realized until 4Q11 FDIC Investment
Performance |
 TD Bank transaction
Expected to close in 1Q 2011
4 Branches in Putnam County, Florida
$113 Million deposits
Purchase $125 Million of hand-picked
performing loans
Purchase price of performing loans equal to
90% of legal unpaid balance
Loans have a two-year put back period for any loan that becomes
30 days past due or becomes classified pursuant to
applicable regulatory guidelines.
IRR anticipated to exceed 20%
Capital required to support acquired assets at 8%: $9 million
12 |
 Current Events
$75 million of AFS securities sold during 4Q10; pre-tax gain of
$3.4 million. Modest profit anticipated 4Q10; PTPP income
continues to be healthy Correspondent
Banking
Division
–
expected
4Q
earnings
in
line
with
1Q
and
2Q
Modest
increase
in
NPAs
expected
in
4Q10.
OREO auction held in 4Q10; approximately $2.4 million sold; recognized
loss on sale of approximately $500K.
The
Bank
continues
to
evaluate
a
number
of
FDIC
transactions
and
anticipates
to
be
an
active
bidder in 2011. A larger transaction may require a contingent
capital raise. Three largest subsidiary banks combined into one
bank during December creating cost efficiencies and better
utilization of capital. In uncertain times, management’s
approach is to maintain a Tier 1 leverage ratio approximating
10% at the company level. As the economy and real estate markets
improve, and we enter into a more
normal
environment,
we
would
expect
to
reduce
this
ratio
to
approximately
8%.
13 |