Attached files
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| 8-K - FORM 8-K - CenterState Bank Corp | d8k.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
February 7, 2011
CenterState Banks, Inc. Announces
Fourth Quarter 2010 Operating Results
DAVENPORT, FL. – February 7, 2011 - CenterState Banks, Inc. (NASDAQ: CSFL) reported net income for the fourth quarter 2010 of $436,000 or $0.01 per share, which included gain on sale of AFS securities of approximately $0.08 per share.
Loan loss provision for the current quarter was $5,056,000, which was similar to the $4,045,000 and $4,075,000 reported in the second and first quarters, respectively, and considerably less than the $16,448,000 reported in the third quarter. Net charge-offs during the current quarter were $6,801,000, which was considerably less than the $12,627,000 reported in the third quarter.
Net interest margin (“NIM”) improved 6 basis points (“bps”) to 3.36% in 4Q10 compared to 3Q10. The primary reason for this improvement was lower cost of deposits. The cost of interest bearing deposits decreased from 1.25% in 3Q10 to 1.06% in 4Q10. The downward repricing of maturing time deposits combined with the shrinkage of time deposits as a percentage of total deposits were the primary reasons for the overall lower cost.
The correspondent banking division (a reportable segment) reported record earnings performance during the previous quarter. During the current quarter, it reported earnings which were similar to 2Q10 and 1Q10, with gross revenue from bond sales of $7,140,000 and a contribution to net income of approximately $1,161,000 or $0.04 per share.
The Company continues to maintain solid capital levels with a 10.3% Tier 1 Leverage Capital ratio and Tangible Common Equity ratio of approximately 10.4%.
On January 20, 2011, the Company completed the previously announced transaction whereby it acquired approximately $114 million of deposits and $121 million of performing loans from TD Bank N.A. The deposits are located in four Putnam County, Florida branch offices, which are also being acquired. The Company did not pay a premium for the deposits and purchased the loans for 90% of the loans’ outstanding balance. The loans were individually selected by the Company and are located within the Company’s fourteen county market area in central Florida. The Company has the option to put back any purchased loan that becomes thirty days past due or is classified pursuant to regulatory standards during a two year period. Management is currently evaluating market values of the assets and liabilities acquired. The bargain purchase gain, if any, related to this transaction has not yet been determined.
On December 10, 2010, the Company combined its three nationally chartered subsidiary banks into one, at which time the Company went from a multi-bank holding company with four subsidiary banks to a multi-bank holding company with two subsidiary banks, one with a national charter and the other with a state charter. The objective of this combination was to free up capital at the two small national banks, to gain efficiencies and to develop specialists in narrowly defined fields of responsibilities.
The Company continues the integration process of the three failed institutions acquired from the FDIC during the third quarter into the lead bank. These institutions continue to operate on their legacy core processing systems. Conversion is scheduled for summer and early fall 2011. The Company will not fully realize the planned and expected operating efficiencies from these acquisitions until that time.
Additional information and analysis is presented below. All per share data is presented herein on a diluted basis, unless otherwise stated. Quarterly condensed consolidated income statements (unaudited) are shown below for the periods indicated.
Quarterly Condensed Consolidated Statements of Operations (unaudited)
| Amounts in thousands of dollars (except per share data) |
||||||||||||||||||||
| For the quarter ended: |
12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | 12/31/09 | |||||||||||||||
| Interest income |
$ | 19,473 | $ | 19,106 | $ | 17,840 | $ | 18,161 | $ | 18,144 | ||||||||||
| Interest expense |
3,866 | 4,343 | 4,218 | 4,315 | 4,659 | |||||||||||||||
| Net interest income |
15,607 | 14,763 | 13,622 | 13,846 | 13,485 | |||||||||||||||
| Provision for loan losses |
(5,056 | ) | (16,448 | ) | (4,045 | ) | (4,075 | ) | (9,386 | ) | ||||||||||
| Net interest (loss) income after loan loss provision |
10,551 | (1,685 | ) | 9,577 | 9,771 | 4,099 | ||||||||||||||
| Income from correspondent banking and bond sales division |
7,140 | 11,828 | 7,372 | 6,356 | 7,119 | |||||||||||||||
| Gain on sale of securities available for sale |
3,808 | 151 | 1,639 | 1,436 | 1,538 | |||||||||||||||
| Bargain purchase gain FDIC acquisition |
— | 2,010 | — | — | — | |||||||||||||||
| All other non interest income |
4,231 | 3,766 | 3,148 | 2,681 | 2,792 | |||||||||||||||
| Credit related expenses |
(1,617 | ) | (2,400 | ) | (827 | ) | (1,434 | ) | (1,583 | ) | ||||||||||
| Impairment of Core Deposit Intangible |
— | — | — | — | (1,200 | ) | ||||||||||||||
| Impairment of bank real estate |
— | — | — | — | (939 | ) | ||||||||||||||
| FDIC acquisition expenses |
— | (769 | ) | — | — | — | ||||||||||||||
| Correspondent banking division expenses |
(6,689 | ) | (9,249 | ) | (6,740 | ) | (6,164 | ) | (6,512 | ) | ||||||||||
| All other non interest expense |
(17,166 | ) | (15,112 | ) | (13,031 | ) | (12,127 | ) | (11,971 | ) | ||||||||||
| Income (loss) before income tax |
258 | (11,460 | ) | 1,138 | 519 | (6,657 | ) | |||||||||||||
| Income tax benefit (expense) |
178 | 4,184 | (234 | ) | (126 | ) | 2,630 | |||||||||||||
| NET INCOME (LOSS) |
$ | 436 | $ | (7,276 | ) | $ | 904 | $ | 393 | $ | (4,027 | ) | ||||||||
| Net income (loss) available to common shareholders |
$ | 436 | $ | (7,276 | ) | $ | 904 | $ | 393 | $ | (4,027 | ) | ||||||||
| Earnings (loss) per share (basic) |
$ | 0.01 | $ | (0.25 | ) | $ | 0.03 | $ | 0.02 | $ | (0.16 | ) | ||||||||
| Earnings (loss) per share (diluted) |
$ | 0.01 | $ | (0.25 | ) | $ | 0.03 | $ | 0.02 | $ | (0.16 | ) | ||||||||
| Average common shares outstanding (basic) |
30,004,761 | 28,789,008 | 25,802,818 | 25,776,820 | 25,773,229 | |||||||||||||||
| Average common shares outstanding (diluted) |
30,067,639 | 28,789,008 | 25,967,594 | 25,975,584 | 25,773,229 | |||||||||||||||
| Common shares outstanding at period end |
30,004,761 | 30,004,761 | 25,862,801 | 25,778,767 | 25,773,229 | |||||||||||||||
| PTPP earnings (note 1) |
$ | 3,123 | $ | 5,996 | $ | 4,371 | $ | 4,592 | $ | 4,913 | ||||||||||
| PTPP earnings per share (diluted) (note 2) |
$ | 0.10 | $ | 0.21 | $ | 0.17 | $ | 0.18 | $ | 0.19 | ||||||||||
| Note 1: | Pre-tax pre-provision earnings (“PTPP”) is a non-GAAP measure that means income (loss) before income tax excluding the provision for loan losses and gain on sale of available for sale (“AFS”) securities. In addition the Company also excluded other credit related costs including losses on repossessed real estate and other assets, and other foreclosure related expenses. It also excludes non recurring items as listed below. |
Quarterly condensed PTPP reconciliation (unaudited)
| Amounts are in thousands of dollars | ||||||||||||||||||||
| For the quarter ended: |
12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | 12/31/09 | |||||||||||||||
| Income (loss) before income tax |
$ | 258 | ($ | 11,460 | ) | $ | 1,138 | $ | 519 | ($ | 6,657 | ) | ||||||||
| exclude provision for loan losses |
5,056 | 16,448 | 4,045 | 4,075 | 9,386 | |||||||||||||||
| exclude other credit related costs |
1,617 | 2,400 | 827 | 1,434 | 1,583 | |||||||||||||||
| exclude gain on sale of AFS securities |
(3,808 | ) | (151 | ) | (1,639 | ) | (1,436 | ) | (1,538 | ) | ||||||||||
| exclude non recurring items: |
||||||||||||||||||||
| bargain purchase gain |
— | (2,010 | ) | — | — | — | ||||||||||||||
| FDIC acquisition expenses |
— | 769 | — | — | — | |||||||||||||||
| Impairment- core deposit intangible |
— | — | — | — | 1,200 | |||||||||||||||
| Impairment- bank real estate |
— | — | — | — | 939 | |||||||||||||||
| PTPP earnings |
$ | 3,123 | $ | 5,996 | $ | 4,371 | $ | 4,592 | $ | 4,913 | ||||||||||
| Note 2: | PTPP earnings per share means, PTPP as defined in note 1 above divided by the average number of diluted common shares outstanding. |
The Company’s condensed quarterly correspondent banking and bond sales segment is presented below.
Quarterly Condensed Segment Information - Correspondent banking and bond sales division (unaudited)
| Amounts are in thousands of dollars (except per share data) |
||||||||||||||||||||
| For the quarter ended: |
12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | 12/31/09 | |||||||||||||||
| Net interest income |
$ | 974 | $ | 1,148 | $ | 1,319 | $ | 1,526 | $ | 1,656 | ||||||||||
| Total non interest income (note 3) |
7,576 | 12,358 | 7,758 | 6,622 | 7,468 | |||||||||||||||
| Total non interest expense (note 4) |
(6,689 | ) | (9,249 | ) | (6,740 | ) | (6,164 | ) | (6,512 | ) | ||||||||||
| Income tax provision |
(700 | ) | (1,564 | ) | (900 | ) | (764 | ) | (1,006 | ) | ||||||||||
| Net income |
$ | 1,161 | $ | 2,693 | $ | 1,437 | $ | 1,220 | $ | 1,606 | ||||||||||
| Contribution to diluted earnings per share |
$ | 0.04 | $ | 0.09 | $ | 0.05 | $ | 0.05 | $ | 0.06 | ||||||||||
| Note 3: | The primary component in this line item is gross commissions earned on bond sales (“income from correspondent banking and bond sales division”) which was $7,140, $11,828, $7,372, $6,356 and $7,119 for 4Q10, 3Q10, 2Q10, 1Q10 and 4Q09, respectively. The remaining non interest income items in this category 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 4: | The majority of these expenses are variable in nature and are a derivative of the income from correspondent banking and bond sales division. |
Net Interest Margin (“NIM”)
The Company’s current quarter NIM increased 6bps to 3.36% compared to the previous quarter, as indicated in the table below. The primary factor contributing to the NIM expansion was the decrease in the cost of the Company’s interest bearing deposits. Overall interest bearing deposit cost decreased from 1.25% in the previous quarter to 1.06% in the current quarter. Quarter to quarter, the cost decreased in each deposit category, but the category affecting the overall decrease the most was time deposits. As time deposits matured the repricing to current market rates was significant in many cases. In addition, the mix of deposits changed whereby time deposits represented 42% of total deposits at the end of the previous quarter and 39% at the end of the current quarter.
The tables below summarize our yields and cost 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. The second table below also lists selected financial ratios for the last five quarters.
Yield and Cost table (unaudited) (amounts are in thousands of dollars)
| 4Q10 | 3Q10 | 4Q09 | ||||||||||||||||||||||||||||||||||
| average balance |
interest inc/exp |
avg rate |
average balance |
interest inc/exp |
avg rate |
average balance |
interest inc/exp |
avg rate |
||||||||||||||||||||||||||||
| Loans (TEY)* |
$ | 1,149,981 | $ | 15,060 | 5.20 | % | $ | 1,046,194 | $ | 14,431 | 5.47 | % | $ | 931,681 | $ | 13,595 | 5.79 | % | ||||||||||||||||||
| Taxable securities |
524,137 | 3,893 | 2.95 | % | 588,154 | 4,203 | 2.84 | % | 457,583 | 4,004 | 3.47 | % | ||||||||||||||||||||||||
| Tax -exempt securities (TEY) |
31,939 | 487 | 6.05 | % | 35,969 | 531 | 5.86 | % | 34,885 | 499 | 5.68 | % | ||||||||||||||||||||||||
| Fed funds sold and other |
159,957 | 226 | 0.56 | % | 125,572 | 127 | 0.40 | % | 231,051 | 220 | 0.38 | % | ||||||||||||||||||||||||
| Tot. interest earning assets(TEY) |
$ | 1,866,014 | $ | 19,666 | 4.18 | % | $ | 1,795,889 | $ | 19,292 | 4.26 | % | $ | 1,655,200 | $ | 18,318 | 4.39 | % | ||||||||||||||||||
| Interest bearing deposits |
$ | 1,365,362 | $ | 3,633 | 1.06 | % | $ | 1,292,668 | $ | 4,085 | 1.25 | % | $ | 1,048,364 | $ | 4,295 | 1.63 | % | ||||||||||||||||||
| Fed funds purchased |
74,981 | 19 | 0.10 | % | 90,368 | 23 | 0.10 | % | 226,723 | 92 | 0.16 | % | ||||||||||||||||||||||||
| Other borrowings |
27,492 | 109 | 1.57 | % | 35,059 | 123 | 1.39 | % | 54,506 | 168 | 1.22 | % | ||||||||||||||||||||||||
| Corporate debentures |
12,500 | 105 | 3.33 | % | 12,500 | 112 | 3.55 | % | 12,500 | 104 | 3.30 | % | ||||||||||||||||||||||||
| Total interest bearing liabilities |
$ | 1,480,335 | $ | 3,866 | 1.04 | % | $ | 1,430,595 | $ | 4,343 | 1.20 | % | $ | 1,342,093 | $ | 4,659 | 1.38 | % | ||||||||||||||||||
| Net Interest Spread (TEY) |
3.14 | % | 3.06 | % | 3.01 | % | ||||||||||||||||||||||||||||||
| Net Interest Margin (TEY) |
3.36 | % | 3.30 | % | 3.27 | % | ||||||||||||||||||||||||||||||
| * | TEY = tax equivalent yield |
Selected financial ratios (unaudited)
| As of or for the quarter ended: |
12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | 12/31/09 | |||||||||||||||
| Return on average assets (annualized) |
0.08 | % | (1.41 | %) | 0.20 | % | 0.09 | % | (0.89 | %) | ||||||||||
| Return on average equity (annualized) |
0.68 | % | (11.32 | %) | 1.57 | % | 0.69 | % | (7.40 | %) | ||||||||||
| Yield on average loans (note 1) |
5.20 | % | 5.52 | % | 5.54 | % | 5.66 | % | 5.79 | % | ||||||||||
| Yield on average investments (note 1) |
2.55 | % | 2.57 | % | 2.77 | % | 3.14 | % | 2.59 | % | ||||||||||
| Yield on average interest earning assets |
4.14 | % | 4.22 | % | 4.30 | % | 4.58 | % | 4.35 | % | ||||||||||
| Yield on average interest earning assets (note 1) |
4.18 | % | 4.26 | % | 4.34 | % | 4.63 | % | 4.39 | % | ||||||||||
| Cost of average interest bearing deposits |
1.06 | % | 1.25 | % | 1.42 | % | 1.52 | % | 1.63 | % | ||||||||||
| Cost of average borrowings |
0.80 | % | 0.74 | % | 0.61 | % | 0.55 | % | 0.49 | % | ||||||||||
| Cost of average interest bearing liabilities (note 2) |
1.04 | % | 1.20 | % | 1.31 | % | 1.37 | % | 1.38 | % | ||||||||||
| Net interest margin (note 1) |
3.36 | % | 3.30 | % | 3.33 | % | 3.54 | % | 3.27 | % | ||||||||||
| Loan / deposit ratio |
67.0 | % | 65.7 | % | 66.0 | % | 70.6 | % | 73.5 | % | ||||||||||
| Stockholders equity (to total assets) |
12.2 | % | 12.1 | % | 12.8 | % | 12.9 | % | 13.1 | % | ||||||||||
| Common tangible equity (to total tangible assets) |
10.4 | % | 10.4 | % | 11.1 | % | 11.2 | % | 11.3 | % | ||||||||||
| Tier 1 capital (to average assets) |
10.3 | % | 11.0 | % | 11.3 | % | 11.6 | % | 11.4 | % | ||||||||||
| Efficiency ratio (note 3) |
94 | % | 88 | % | 85 | % | 86 | % | 86 | % | ||||||||||
| Common equity per common share |
$ | 8.42 | $ | 8.58 | $ | 8.99 | $ | 8.90 | $ | 8.90 | ||||||||||
| Common tangible equity per common share |
$ | 7.02 | $ | 7.18 | $ | 7.64 | $ | 7.54 | $ | 7.53 | ||||||||||
| note 1: | Tax equivalent basis. | |
| note 2: | Does not include non interest bearing checking accounts. | |
| note 3: | Efficiency ratio is equal to (non-interest expense less nonrecurring items) divided by (net interest income plus non-interest income less nonrecurring items). Gain on the sale of available for sale securities is considered a nonrecurring item for the purposes of this ratio in the above table. |
Loan portfolio mix and covered loans
Seventeen and a half percent (17.5%) of the Company’s loans, or $198,197,000, are covered by FDIC loss sharing agreements related to the acquisition of three failed financial institutions during the third quarter of 2010. Pursuant to the terms of the loss sharing agreements, the FDIC is obligated to reimburse the Company for 80% of losses with respect to the covered loans beginning with the first dollar of loss incurred, subject to the terms of the agreements. The Company will reimburse the FDIC for its share of recoveries with respect to the covered loans. The loss sharing agreements applicable to single family residential mortgage loans provide for FDIC loss sharing and the Company reimbursement to the FDIC for recoveries for ten years. The loss sharing agreements applicable to commercial loans provides for FDIC loss sharing for five years and Company reimbursement to the FDIC for a total of eight years for recoveries.
Eighty-two and a half percent (82.5%) of the Company’s loans, or $931,749,000, are not covered by FDIC loss sharing agreements. Of this amount approximately 83% are collateralized by real estate, 11% are commercial non real estate loans and the remaining 6% are consumer and other non real estate loans. The table below summarizes the Company’s loan mix over the most recent five quarter ends.
Loan mix (in thousands of dollars) (unaudited)
| At quarter ended: |
12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | 12/31/09 | |||||||||||||||
| Loans not covered by FDIC loss share agreements |
||||||||||||||||||||
| Real estate loans |
||||||||||||||||||||
| Residential |
$ | 255,571 | $ | 252,867 | $ | 249,628 | $ | 251,368 | $ | 251,634 | ||||||||||
| Commercial |
410,162 | 414,383 | 441,652 | 443,876 | 438,540 | |||||||||||||||
| Construction, development and land loans |
109,380 | 107,028 | 106,486 | 108,614 | 115,937 | |||||||||||||||
| Total real estate loans |
775,113 | 774,278 | 797,766 | 803,858 | 806,111 | |||||||||||||||
| Commercial loans |
100,906 | 83,715 | 88,056 | 87,521 | 98,273 | |||||||||||||||
| Consumer and other loans, (note 1) |
4,343 | 5,493 | — | — | — | |||||||||||||||
| Consumer and other loans |
52,115 | 57,445 | 56,657 | 55,754 | 55,376 | |||||||||||||||
| Total loans before unearned fees and costs |
932,477 | 920,931 | 942,479 | 947,133 | 959,760 | |||||||||||||||
| Unearned fees and costs |
(728 | ) | (716 | ) | (700 | ) | (726 | ) | (739 | ) | ||||||||||
| Total loans not covered by FDIC loss share agreements |
931,749 | 920,215 | 941,779 | 946,407 | 959,021 | |||||||||||||||
| Loans covered by FDIC loss share agreements |
||||||||||||||||||||
| Real estate loans |
||||||||||||||||||||
| Residential |
111,472 | 119,576 | — | — | — | |||||||||||||||
| Commercial |
67,761 | 72,793 | — | — | — | |||||||||||||||
| Construction, development and land loans (note 2) |
13,253 | 10,880 | — | — | — | |||||||||||||||
| Total real estate loans |
192,486 | 203,249 | — | — | — | |||||||||||||||
| Commercial loans |
5,711 | 6,345 | — | — | — | |||||||||||||||
| Total loans covered by FDIC loss share agreements |
198,197 | 209,594 | — | — | — | |||||||||||||||
| Total Loans |
$ | 1,129,946 | $ | 1,129,809 | $ | 941,779 | $ | 946,407 | $ | 959,021 | ||||||||||
| Note 1: | Consumer loans acquired pursuant to three FDIC assisted transactions of failed financial institutions during the third quarter of 2010. These loans are not covered by an FDIC loss share agreement and are being accounted for pursuant to ASC Topic 310-30. | |
| Note 2: | Single family residential lot loans were reclassified from residential real estate to construction, development and land loan category. |
Credit quality and allowance for loan losses
During the current quarter, the Company recorded a charge of $5,056,000 to loan loss provision (expense) and charged-off (net of recoveries) $6,801,000, or 0.72% of average outstanding loans during the quarter (2.85% of average loans on an annualized basis), excluding loans covered by FDIC loss sharing agreements.
The allowance for loan losses was $26,267,000 at December 31, 2010 compared to $28,012,000 at September 30, 2010, a decrease of $1,745,000 ($5,056,000 charge to loan loss expense less $6,801,000 net charge-offs equals $1,745,000 loan loss allowance decrease during the fourth quarter 2010). This decrease is the result of a $286,000 increase in general loan loss allowance and a $2,031,000 decrease in specific loan loss allowance. The increase in our general allowance is primarily due to changes in our historical charge-off rates, changes in our current environmental factors, and changes in the loan portfolio mix, plus the increase in the amount of our loan portfolio. Our specific allowance is the aggregate of the results of individual analyses prepared for each one of our impaired loans not covered by an FDIC loss sharing agreement on a loan by loan basis.
The allowance for loan losses as a percentage of loans outstanding which are not covered by FDIC loss share agreements was 2.82% as of December 31, 2010 compared to 3.04% as of September 30, 2010. Management believes the Company’s allowance for loan losses is adequate at December 31, 2010. 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)
| (amounts are in thousands dollars) |
||||||||||||||||||||
| as of or for the quarter ending |
12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | 12/31/09 | |||||||||||||||
| Allowance at beginning of period |
$ | 28,012 | $ | 24,191 | $ | 24,088 | $ | 23,289 | $ | 17,553 | ||||||||||
| Charge-offs |
(6,912 | ) | (12,704 | ) | (4,163 | ) | (3,310 | ) | (3,724 | ) | ||||||||||
| Recoveries |
111 | 77 | 221 | 34 | 74 | |||||||||||||||
| Net charge-offs |
(6,801 | ) | (12,627 | ) | (3,942 | ) | (3,276 | ) | (3,650 | ) | ||||||||||
| Provision for loan losses |
5,056 | 16,448 | 4,045 | 4,075 | 9,386 | |||||||||||||||
| Allowance at end of period |
$ | 26,267 | $ | 28,012 | $ | 24,191 | $ | 24,088 | $ | 23,289 | ||||||||||
The $6,801,000 net charge-off during the current period related to the following types of loans:
| net charge-offs during the quarter ended September 30, 2010 | ||||
| (amounts are in thousands of dollars) (unaudited) |
||||
| Residential real estate loans |
$ | 1,207 | ||
| Commercial real estate loans |
3,941 | |||
| Construction, development, land loans |
1,272 | |||
| Commercial non real estate loans |
314 | |||
| Consumer and other loans |
67 | |||
| Total net charge-offs |
$ | 6,801 | ||
The Company defines non performing loans as non accrual loans plus loans past due 90 days or more and still accruing interest. Non performing loans do not include loans covered by FDIC loss share agreements, which are accounted for pursuant to ASC Topic 310-30. Non performing loans as a percentage of total loans not covered by FDIC loss share agreements were 7.06% at December 31, 2010 compared to 6.13% at September 30, 2010.
Non performing assets (which the Company defines as non performing loans, as defined above, plus (a) OREO (i.e. real estate acquired through foreclosure, in-substance foreclosure, or deed in lieu of foreclosure), excluding OREO covered by FDIC loss share agreements; and (b) other repossessed assets that are not real estate, and are not covered by FDIC loss share agreements), were $78,524,000 at December 31, 2010, compared to $68,827,000 at September 30, 2010. Non performing assets as a
percentage of total assets was 3.81% at December 31, 2010 compared to 3.24% at September 30, 2010. Non performing assets as a percentage of loans plus OREO and other repossessed assets, excluding loans and OREO covered by FDIC loss share agreements, was 8.31% at December 31, 2010 compared to 7.38% at September 30, 2010. The table below summarizes selected credit quality data for the periods indicated.
Selected credit quality ratios, dollars are in thousands (unaudited)
| As of or for the quarter ended: |
12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | 12/31/09 | |||||||||||||||
| Non accrual loans (note 1) |
$ | 62,553 | $ | 55,921 | $ | 51,468 | $ | 48,753 | $ | 42,059 | ||||||||||
| Past due loans 90 days or more and still accruing interest (note 1) |
3,200 | 478 | 602 | 34 | 282 | |||||||||||||||
| Total non performing loans (“NPLs”) (note 1) |
65,753 | 56,399 | 52,070 | 48,787 | 42,341 | |||||||||||||||
| Other real estate owned (OREO) (note 1) |
12,239 | 11,861 | 11,144 | 10,059 | 10,196 | |||||||||||||||
| Repossessed assets other than real estate (note 1) |
532 | 567 | 629 | 694 | 915 | |||||||||||||||
| Total non performing assets (“NPAs”) (note 1) |
$ | 78,524 | $ | 68,827 | $ | 63,843 | $ | 59,540 | $ | 53,452 | ||||||||||
| Non performing loans as percentage of total loans not covered by FDIC loss share agreements |
7.06 | % | 6.13 | % | 5.53 | % | 5.15 | % | 4.42 | % | ||||||||||
| Non performing assets as percentage of total assets |
3.81 | % | 3.24 | % | 3.51 | % | 3.35 | % | 3.05 | % | ||||||||||
| Non performing assets as percentage of loans and OREO plus other repossessed assets (note 1) |
8.31 | % | 7.38 | % | 6.70 | % | 6.22 | % | 5.51 | % | ||||||||||
| Net charge-offs (recoveries) |
$ | 6,801 | $ | 12,627 | $ | 3,942 | $ | 3,276 | $ | 3,650 | ||||||||||
| Net charge-offs as a percentage of average loans for the period (note 1) |
0.72 | % | 1.37 | % | 0.42 | % | 0.34 | % | 0.39 | % | ||||||||||
| Net charge-offs as a percentage of average loans for the period on an annualized basis (note 1) |
2.85 | % | 5.48 | % | 1.68 | % | 1.36 | % | 1.56 | % | ||||||||||
| Loans past due 30 thru 89 days and accruing interest as a percentage of total loans (note 1) |
1.96 | % | 1.50 | % | 1.27 | % | 1.20 | % | 1.28 | % | ||||||||||
| Allowance for loan losses as percentage of NPLs (note 1) |
40 | % | 50 | % | 46 | % | 49 | % | 55 | % | ||||||||||
| Trouble debt restructure (“TDRs”) note 2 |
$ | 22,322 | $ | 23,428 | $ | 29,863 | $ | 27,953 | $ | 26,499 | ||||||||||
| Impaired loans that were not TDRs |
64,655 | 57,666 | 54,108 | 54,802 | 52,449 | |||||||||||||||
| Total impaired loans |
86,977 | 81,094 | 83,971 | 82,755 | 78,948 | |||||||||||||||
| Total non impaired loans |
844,772 | 839,121 | 857,808 | 863,652 | 880,073 | |||||||||||||||
| Total loans not covered by FDIC loss share agreements |
931,749 | 920,215 | 941,779 | 946,407 | 959,021 | |||||||||||||||
| Total loans covered by FDIC loss share agreements |
198,197 | 209,594 | — | — | — | |||||||||||||||
| Total loans |
$ | 1,129,946 | $ | 1,129,809 | $ | 941,779 | $ | 946,407 | $ | 959,021 | ||||||||||
| Allowance for loan loss percentage of period end loans: |
||||||||||||||||||||
| Impaired loans (note 1) |
3.67 | % | 6.44 | % | 3.95 | % | 5.38 | % | 5.84 | % | ||||||||||
| Non impaired loans (note 1) |
2.73 | % | 2.72 | % | 2.43 | % | 2.27 | % | 2.12 | % | ||||||||||
| Total loans (note 1) |
2.82 | % | 3.04 | % | 2.57 | % | 2.55 | % | 2.43 | % | ||||||||||
| Note 1: | Excludes loans, OREO and other repossessed assets covered by FDIC loss share agreements. |
| Note 2: | In this current real estate crisis the Nation in general and Florida in particular have been experiencing, it has become more common to restructure or modify the terms of certain loans under certain conditions (i.e. troubled debt restructure or “TDRs”). In those circumstances it may be beneficial to restructure the terms of a loan and work with the borrower for the benefit of both parties, versus forcing the property into foreclosure and having to dispose of it in an unfavorable and depressed real estate market. When we have modified the terms of a loan, we usually either reduce the monthly payment and/or interest rate for generally about twelve months. We have not forgiven any material principal amounts on any loan modifications to date. We have approximately $22,322 of TDRs. Of this amount $10,591 are performing pursuant to their modified terms, and $11,731 are not performing and have been placed on non accrual status and included in our 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 our NPLs. |
As shown in the table above, the largest component of non performing loans is non accrual loans. As of December 31, 2010 the Company had reported a total of 268 non accrual loans with an aggregate book value of $62,553,000, compared to September 30, 2010 when 243 non accrual loans with an aggregate book value of $55,921,000 were reported. Also, as shown in the table above, non accrual loans, non performing loans and non performing assets increased quarter to quarter in each of the last five quarters. This is reflective of the economy in general and specifically the significantly devalued real estate market in Florida. Non accrual loans at December 31, 2010 are further delineated by collateral category and number of loans in the table below (in thousands of dollars).
| collateral category (unaudited) |
total amount | percentage of total non accrual loans |
number of non accrual loans in category |
|||||||||
| Residential real estate loans |
$ | 17,282 | 28 | % | 105 | |||||||
| Commercial real estate loans |
28,364 | 45 | % | 59 | ||||||||
| Construction, development and land loans |
15,546 | 25 | % | 57 | ||||||||
| Non real estate commercial loans |
615 | 1 | % | 17 | ||||||||
| Non real estate consumer and other loans |
746 | 1 | % | 30 | ||||||||
| Total non accrual loans at December 31, 2010 |
$ | 62,553 | 100 | % | 268 | |||||||
The second largest component of non performing assets after non accrual loans is OREO, excluding OREO covered by FDIC loss share agreements. At December 31, 2010, total OREO was $23,343,000. Of this amount, $11,104,000 was acquired pursuant to the acquisition of three failed financial institutions during the third quarter of 2010. The acquired OREO is covered by FDIC loss sharing agreements. Pursuant to the terms of the loss sharing agreements, the FDIC is obligated to reimburse the Company for 80% of losses with respect to the covered OREO beginning with the first dollar of loss incurred, subject to the terms of the agreements. The Company will reimburse the FDIC for its share of recoveries with respect to the covered OREO. The loss sharing agreements applicable to single family residential mortgage loans provide for FDIC loss sharing and the Company reimbursement to the FDIC for recoveries for ten years. The loss sharing agreements applicable to commercial loans provides for FDIC loss sharing for five years and Company reimbursement to the FDIC for a total of eight years for recoveries.
OREO not covered by FDIC loss share agreements is $12,239,000 at December 31, 2010. OREO is carried at the lower of cost or market less the estimated cost to sell. Further declines in real estate values can affect the market value of these assets. Any further decline in market value beyond its cost basis is recorded as a current expense in the Company’s Statement of Operations. The current carrying value represents approximately 62% of the unpaid legal balance of the related loan when the asset was repossessed. OREO is further delineated in the table below (in thousands of dollars).
| (unaudited) Description of repossessed real estate |
carrying amount at Dec 31, 2010 |
|||
| 15 single family homes |
$ | 2,271 | ||
| 4 mobile homes with land |
101 | |||
| 45 residential building lots |
889 | |||
| 16 commercial buildings |
6,851 | |||
| Land / various acreages |
2,127 | |||
| Total, excluding OREO covered by FDIC loss share agreements |
$ | 12,239 | ||
Deposit activity
During the current quarter, time deposits decreased by $60,335,000 and non time deposits increased by $25,624,000. Quarter to quarter, cost of deposits decreased in each deposit category, but the category effecting the overall decrease the most was time deposits. In addition to repricing maturing time deposits to current market rates, time deposits as a percentage of total deposits decreased from 42% to 39%. During the same time, core deposits (non time deposits) as a percentage of total deposits increased, both in terms of actual dollars and as a percentage of total deposits. A summary of our deposit mix over the previous five quarters is presented in the table below.
Deposit mix (in thousands of dollars) (unaudited)
| At quarter ended: |
12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | 12/31/09 | |||||||||||||||
| Checking accounts |
||||||||||||||||||||
| Non interest bearing |
$ | 323,224 | $ | 330,255 | $ | 307,726 | $ | 231,662 | $ | 233,688 | ||||||||||
| Interest bearing |
282,405 | 253,950 | 188,845 | 186,536 | 193,527 | |||||||||||||||
| Savings deposits |
198,428 | 196,950 | 170,079 | 166,033 | 148,915 | |||||||||||||||
| Money market accounts |
223,724 | 221,002 | 176,978 | 177,288 | 158,598 | |||||||||||||||
| Time deposits |
657,813 | 718,148 | 583,786 | 579,419 | 570,308 | |||||||||||||||
| Total deposits |
$ | 1,685,594 | $ | 1,720,305 | $ | 1,427,414 | $ | 1,340,938 | $ | 1,305,036 | ||||||||||
| Non time deposits as percentage of total deposits |
61 | % | 58 | % | 59 | % | 57 | % | 56 | % | ||||||||||
| Time deposits as percentage of total deposits |
39 | % | 42 | % | 41 | % | 43 | % | 44 | % | ||||||||||
| Total deposits |
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
With regard to the three failed institutions the Company purchased from the FDIC during the third quarter, time deposits shrank and non time deposits increased. Total deposits for these three acquisitions decreased $13,742,000 during the current quarter. Time deposits decreased $24,206,000 and non time deposits increased $10,464,000. The table below is a summary of deposits for the three FDIC acquisitions for the periods presented.
Deposits acquired from FDIC (in thousands of dollars) (unaudited)
| At quarter ended: |
12/31/10 | 9/30/10 | increase (decrease) |
|||||||||
| Non time deposits |
$ | 160,539 | $ | 150,075 | $ | 10,464 | ||||||
| Time deposits |
121,705 | 145,911 | (24,206 | ) | ||||||||
| Total deposits |
$ | 282,244 | $ | 295,986 | ($ | 13,742 | ) | |||||
| Non time deposits as percentage of total |
57 | % | 51 | % | ||||||||
| Time deposits as percentage of total |
43 | % | 49 | % | ||||||||
| Total deposits |
100 | % | 100 | % | ||||||||
Presented below are condensed consolidated balance sheets and average balance sheets for the periods indicated.
Condensed Consolidated Balance Sheets (unaudited)
| Amounts in thousands of dollars |
||||||||||||||||||||
| At quarter ended: |
12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | |||||||||||||||
| Cash and due from banks |
$ | 23,251 | $ | 41,447 | $ | 14,759 | $ | 17,638 | $ | 19,139 | ||||||||||
| Fed funds sold and Fed Res Bank deposits |
154,264 | 85,312 | 92,098 | 172,472 | 173,268 | |||||||||||||||
| Trading securities |
2,225 | 1,581 | 242 | 1,153 | — | |||||||||||||||
| Investments securities, available for sale |
500,927 | 619,282 | 607,314 | 496,715 | 463,186 | |||||||||||||||
| Loans held for sale |
673 | 1,810 | 851 | 573 | — | |||||||||||||||
| Loans covered by FDIC loss share agreements |
198,197 | 209,594 | — | — | — | |||||||||||||||
| Loans not covered by FDIC loss share agreements |
931,749 | 920,215 | 941,779 | 946,407 | 959,021 | |||||||||||||||
| Allowance for loan losses |
(26,267 | ) | (28,012 | ) | (24,191 | ) | (24,088 | ) | (23,289 | ) | ||||||||||
| FDIC indemnification assets |
59,098 | 58,175 | — | — | — | |||||||||||||||
| Premises and equipment, net |
84,982 | 74,484 | 71,912 | 63,804 | 62,368 | |||||||||||||||
| Goodwill |
38,035 | 38,035 | 32,840 | 32,840 | 32,840 | |||||||||||||||
| Core deposit intangible |
3,921 | 4,092 | 2,216 | 2,318 | 2,422 | |||||||||||||||
| Bank owned life insurance |
27,440 | 27,190 | 15,969 | 15,818 | 15,665 | |||||||||||||||
| OREO covered by FDIC loss share agreements |
11,104 | 9,405 | — | — | — | |||||||||||||||
| OREO not covered by FDIC loss share agreements |
12,239 | 11,861 | 11,144 | 10,059 | 10,196 | |||||||||||||||
| Excess bank property held for sale |
— | — | 500 | 2,368 | 2,368 | |||||||||||||||
| Other assets |
41,481 | 48,972 | 53,909 | 38,577 | 34,115 | |||||||||||||||
| TOTAL ASSETS |
$ | 2,063,319 | $ | 2,123,443 | $ | 1,821,342 | $ | 1,776,654 | $ | 1,751,299 | ||||||||||
| Deposits |
$ | 1,685,594 | $ | 1,720,305 | $ | 1,427,414 | $ | 1,340,938 | $ | 1,305,036 | ||||||||||
| Federal funds purchased |
68,495 | 72,859 | 84,630 | 139,032 | 144,939 | |||||||||||||||
| Other borrowings |
41,289 | 46,716 | 52,775 | 55,867 | 63,062 | |||||||||||||||
| Other liabilities |
15,297 | 26,076 | 23,892 | 11,344 | 8,852 | |||||||||||||||
| Common stockholders equity |
252,644 | 257,487 | 232,631 | 229,473 | 229,410 | |||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ | 2,063,319 | $ | 2,123,443 | $ | 1,821,342 | $ | 1,776,654 | $ | 1,751,299 | ||||||||||
| Condensed Consolidated Average Balance Sheets (unaudited) | ||||||||||||||||||||
| Amounts in thousands of dollars |
||||||||||||||||||||
| For quarter ended: |
12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | 12/31/09 | |||||||||||||||
| Federal funds sold and other |
$ | 159,957 | $ | 125,572 | $ | 163,767 | $ | 158,853 | $ | 231,051 | ||||||||||
| Security investments |
556,076 | 624,123 | 556,566 | 498,961 | 492,468 | |||||||||||||||
| Loans covered by FDIC loss share agreements |
203,234 | 127,641 | ||||||||||||||||||
| Loans not covered by FDIC loss share agreements |
946,747 | 918,553 | 944,734 | 951,009 | 931,681 | |||||||||||||||
| Allowance for loan losses |
(28,700 | ) | (25,916 | ) | (23,907 | ) | (23,731 | ) | (17,249 | ) | ||||||||||
| All other assets |
272,980 | 278,149 | 177,852 | 174,697 | 153,932 | |||||||||||||||
| TOTAL ASSETS |
$ | 2,110,294 | $ | 2,048,122 | $ | 1,819,012 | $ | 1,759,789 | $ | 1,791,883 | ||||||||||
| Deposits- interest bearing |
$ | 1,365,362 | $ | 1,292,668 | $ | 1,117,986 | $ | 1,077,922 | $ | 1,048,364 | ||||||||||
| Deposits- non interest bearing |
347,046 | 331,507 | 289,220 | 242,490 | 222,056 | |||||||||||||||
| Federal funds purchased |
74,981 | 90,368 | 116,184 | 140,595 | 226,723 | |||||||||||||||
| Other borrowings |
39,992 | 47,559 | 54,040 | 57,159 | 67,006 | |||||||||||||||
| Other liabilities |
27,308 | 30,958 | 10,492 | 11,536 | 11,909 | |||||||||||||||
| Stockholders equity |
255,605 | 255,062 | 231,090 | 230,087 | 215,825 | |||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ | 2,110,294 | $ | 2,048,122 | $ | 1,819,012 | $ | 1,759,789 | $ | 1,791,883 | ||||||||||
Non interest income and non interest expense
The table below summarizes the Company’s non interest income for the periods indicated.
Quarterly Condensed Consolidated Non Interest Income (unaudited)
| Amounts in thousands of dollars |
||||||||||||||||||||
| For the quarter ended: |
12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | 12/31/09 | |||||||||||||||
| Service charges on deposit accounts |
$ | 1,909 | $ | 1,713 | $ | 1,655 | $ | 1,596 | $ | 1,612 | ||||||||||
| Income from correspondent banking and bond sales division |
7,140 | 11,828 | 7,372 | 6,356 | 7,119 | |||||||||||||||
| Commissions from sale of mutual funds and annuities |
335 | 318 | 361 | 104 | 106 | |||||||||||||||
| Debit card and ATM fees |
565 | 458 | 465 | 402 | 365 | |||||||||||||||
| Loan related fees |
159 | 128 | 117 | 130 | 136 | |||||||||||||||
| BOLI income |
250 | 220 | 152 | 152 | 152 | |||||||||||||||
| Trading securities revenue |
174 | 249 | 115 | 84 | 115 | |||||||||||||||
| Gain on sale of securities available for sale |
3,808 | 151 | 1,639 | 1,436 | 1,538 | |||||||||||||||
| Bargain purchase gain, acquisition of failed institution |
— | 2,010 | — | — | — | |||||||||||||||
| FDIC indemnification asset – amortization of discount rate |
373 | 225 | — | — | — | |||||||||||||||
| Other service charges and fees |
466 | 455 | 283 | 213 | 306 | |||||||||||||||
| Total non interest income |
$ | 15,179 | $ | 17,755 | $ | 12,159 | $ | 10,473 | $ | 11,449 | ||||||||||
The table below summarizes the Company’s non interest expense for the periods indicated.
| Quarterly Condensed Consolidated Non Interest Expense (unaudited) | ||||||||||||||||||||
| Amounts in thousands of dollars |
||||||||||||||||||||
| For the quarter ended: |
12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | 12/31/09 | |||||||||||||||
| Employee salaries and wages |
$ | 11,947 | $ | 13,544 | $ | 10,244 | $ | 9,250 | $ | 9,444 | ||||||||||
| Employee incentive/bonus compensation |
938 | 1,020 | 954 | 708 | 907 | |||||||||||||||
| Employee stock option and stock grant expense |
181 | 180 | 180 | 158 | 104 | |||||||||||||||
| Deferred compensation expense |
120 | 97 | 58 | 67 | 55 | |||||||||||||||
| Health insurance and other employee benefits |
659 | 311 | 398 | 840 | 776 | |||||||||||||||
| Payroll taxes |
578 | 642 | 466 | 687 | 450 | |||||||||||||||
| 401K employer contributions |
191 | 211 | 242 | 170 | 138 | |||||||||||||||
| Other employee related expenses |
162 | 179 | 124 | 129 | 106 | |||||||||||||||
| Incremental direct cost of loan origination |
(144 | ) | (175 | ) | (156 | ) | (127 | ) | (170 | ) | ||||||||||
| Total salaries, wages and employee benefits |
$ | 14,632 | $ | 16,009 | $ | 12,510 | $ | 11,882 | $ | 11,810 | ||||||||||
| Occupancy expense |
2,084 | 1,633 | 1,488 | 1,447 | 1,390 | |||||||||||||||
| Depreciation of premises and equipment |
918 | 971 | 706 | 755 | 722 | |||||||||||||||
| Supplies, stationary and printing |
345 | 248 | 283 | 215 | 218 | |||||||||||||||
| Marketing expenses |
732 | 615 | 596 | 555 | 560 | |||||||||||||||
| Data processing expenses |
865 | 726 | 664 | 534 | 642 | |||||||||||||||
| Legal, auditing and other professional fees |
828 | 785 | 750 | 632 | 815 | |||||||||||||||
| FDIC acquisition expenses |
— | 769 | — | — | — | |||||||||||||||
| Bank regulatory related expenses |
868 | 819 | 688 | 614 | 660 | |||||||||||||||
| Postage and delivery |
302 | 198 | 125 | 110 | 102 | |||||||||||||||
| ATM and debit card related expenses |
334 | 365 | 313 | 286 | 290 | |||||||||||||||
| Amortization of CDI |
172 | 142 | 102 | 104 | 196 | |||||||||||||||
| CDI impairment |
— | — | — | — | 1,200 | |||||||||||||||
| Excess bank property held for sale impairment |
— | — | — | — | 939 | |||||||||||||||
| Loss (gain) on sale of repossessed real estate (“OREO”) |
579 | 153 | (3 | ) | 27 | 308 | ||||||||||||||
| Valuation write down of repossessed real estate (“OREO”) |
368 | 1,273 | 428 | 882 | 801 | |||||||||||||||
| Loss on repossessed assets other than real estate |
54 | 171 | 126 | 107 | 100 | |||||||||||||||
| Foreclosure and repossession related expenses |
616 | 803 | 276 | 418 | 374 | |||||||||||||||
| Internet and telephone banking |
236 | 132 | 177 | 134 | 140 | |||||||||||||||
| Operational write-offs and losses |
265 | 296 | 319 | 40 | 63 | |||||||||||||||
| Correspondent account and Federal Reserve charges |
114 | 83 | 79 | 72 | 67 | |||||||||||||||
| Conferences, seminars, education and training |
252 | 236 | 164 | 155 | 98 | |||||||||||||||
| Director fees |
83 | 92 | 98 | 95 | 73 | |||||||||||||||
| Travel expenses |
91 | 224 | 132 | 114 | 163 | |||||||||||||||
| Other expenses |
734 | 787 | 577 | 547 | 474 | |||||||||||||||
| Total non interest expense |
$ | 25,472 | $ | 27,530 | $ | 20,598 | $ | 19,725 | $ | 22,205 | ||||||||||
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 attached financial highlights provide reconciliations between GAAP interest income, net interest income and tax equivalent basis interest income and net interest income, as well as total stockholders equity and tangible common equity. 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): | ||||||||||||
| Amounts are in thousands of dollars | ||||||||||||
| 4Q10 | 3Q10 | 4Q09 | ||||||||||
| Interest income, as reported (GAAP) |
$ | 19,473 | $ | 19,106 | $ | 18,144 | ||||||
| tax equivalent adjustments |
193 | 186 | 174 | |||||||||
| Interest income (tax equivalent) |
$ | 19,666 | $ | 19,292 | $ | 18,318 | ||||||
| Net interest income, as reported (GAAP) |
$ | 15,607 | $ | 14,763 | $ | 13,485 | ||||||
| tax equivalent adjustments |
193 | 186 | 174 | |||||||||
| Net interest income (tax equivalent) |
$ | 15,800 | $ | 14,949 | $ | 13,659 | ||||||
| 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | 12/31/09 | ||||||||||||||||
| Total stockholders’ equity (GAAP) |
$ | 252,644 | $ | 257,487 | $ | 232,631 | $ | 229,473 | $ | 229,410 | ||||||||||
| Goodwill |
(38,035 | ) | (38,035 | ) | (32,840 | ) | (32,840 | ) | (32,840 | ) | ||||||||||
| Core deposit intangible |
(3,921 | ) | (4,092 | ) | (2,216 | ) | (2,318 | ) | (2,422 | ) | ||||||||||
| Tangible common equity |
$ | 210,688 | $ | 215,360 | $ | 197,575 | $ | 194,315 | $ | 194,148 | ||||||||||
About CenterState Banks, Inc.
The Company, headquartered in Davenport, Florida, between Orlando and Tampa, is a multi bank holding company that was formed in June 2000 as part of a merger of three independent commercial banks. Currently, the Company operates through its two subsidiary banks with 53 full service branch banking locations in 14 counties throughout central Florida. Through its subsidiary banks, the Company provides a range of consumer and commercial banking services to individuals, businesses and industries.
In addition to providing traditional deposit and lending products and services to its commercial and retail customers in central Florida, the Company also operates a correspondent banking and bond sales division. The division is integrated with and part of the lead subsidiary bank located in Winter Haven, Florida, although the majority of the bond salesmen, traders and operations personnel are physically housed in leased facilities located in Birmingham, Alabama, Atlanta, Georgia and Winston-Salem, North Carolina. The customer base includes small to medium size financial institutions primarily located in Florida, Alabama, Georgia, North Carolina, South Carolina, Tennessee, Virginia and West Virginia.
For additional information contact Ernest S. Pinner, CEO, John C. Corbett, EVP, or James J. Antal, CFO, at 863-419-7750.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:
Some of the statements in this report constitute forward-looking statements, within the meaning of the 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.
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, 2009, and otherwise in our SEC reports and filings.