Attached files
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| 8-K - FORM 8-K - CenterState Bank Corp | d512988d8k.htm |
 The Burton
Partnership Annual Meeting
March 27, 2013
Ernie Pinner
Chairman & CEO
CenterState Banks, Inc. Holding Company
John Corbett
President & CEO
CenterState Bank of Florida, N.A.
Exhibit 99.1 |
 This
presentation contains forward-looking statements, as defined by Federal Securities
Laws, relating to present or future trends or factors affecting the operations, markets and
products
of
CenterState
Banks,
Inc.
(CSFL).
These
statements
are
provided
to
assist
in
the
understanding of future financial performance. Any such statements are based on current
expectations and involve a number of risks and uncertainties. For a discussion of factors
that may cause such forward-looking statements to differ materially from actual
results, please refer to CSFL’s most recent Form 10-Q and Form 10-K filed
with the Securities Exchange Commission.
CSFL undertakes no obligation to release revisions to these forward-looking statements or
reflect events or circumstances after the date of this presentation.
Forward Looking Statement
2
2 |
 Company Overview |
 Correspondent
Banking Market Data as of 12/31/12
•
Headquartered in Davenport, FL
$2.4 billion in assets
$1.4 billion in loans
$2.0 billion in deposits
•
Company formed: June 2000
1 Subsidiary Bank
Corporate Overview
4 |
 •
CAPITAL -
Total Risk-Based Capital Ratio –
17.9%
•
LIQUIDITY -
Loans / Assets -
61%
•
LOANS WITH THIRD PARTY PROTECTION –
25%
21%
of loans are covered by loss sharing agreements with the FDIC
4%
subject to “Put Back”
agreement with TD Bank ending January 20, 2013
•
ASSETS WITH THIRD PARTY PROTECTION –
36%
*
36% -
Backed by the United States
2% -
subject to “Put Back”
agreement with TD Bank ending January 20, 2013
•
LOW CONCENTRATION LEVELS
**
CRE at
107%
of capital vs. 300% guidance
CD&L at
14%
of capital vs. 100% guidance
* Includes cash and cash equivalents, AFS securities issued by U.S. Government Sponsored
Entities, FDIC covered assets, and FHLB and FRB stock.
**Excludes FDIC covered loans
Conservative
Balance
Sheet
as
of
December
31,
2012
5
TCE Ratio
–
9.6% |
 Ocala
National Bank Olde Cypress Community Bank
Independent National Bank of Ocala
Community National Bank of Bartow
Central Florida State Bank
First Guaranty Bank & Trust Co.
TD Bank divesture in Putnam
Federal Trust Acquisition
from The Hartford
Insurance Company Opportunistic through the Crisis
Non –
FDIC Acquisitions
FDIC Acquisitions
New Fee-Based Business Lines
Strategic Expansion & Management Lift-Outs
Correspondent Banking Division
Prepaid Card Division
Wealth Management Division
Trust Department
Vero Beach
Okeechobee
Jacksonville
6 |
 7
One Year -
2012
Five Year -
2007 to 1012
Price Change % |
 Florida is on the Mend |
 Housing is now
a Tailwind 9
Single Family Inventory
Months Supply of Inventory
•
Median single family home prices are up 14% from last year
•
Pending home sales are up 31% from last year
•
Median days on the market are down 17% from last year
Source:
Florida
Realtors
Yearly
and
Monthly
Market
Detail
–
December
2012
Single
Family Homes |
 NPA Inflows
– Slowing Down
10
Excluding FDIC covered assets |
 NPAs / Loans
& OREO (%) Problem Loan Trends
Source:
SNL
Financial
and
Company
filings.
Peer
information
updated
quarterly
Nonperforming assets include 90 days or more past due.
Southeastern peers include ABCB, BTFG, PNFP, RNST, SCBT, UBSH and UCBI.
Florida peers include all banks headquartered in Florida , opened no later than
12/31/2005 and total assets between $500 million and $5 billion.
14
Credit Quality Trends -
Improving
11 |
 New Loan
Production Loan
Trends
as
of
December
31,
2012
12
Excluding FDIC covered assets |
 Core Earnings on the Rise |
 Net
Income 1. Pre-tax pre-provision income (“PTPP”) is a
non-GAAP measure that if defined as income (loss) before income tax excluding
provision for loan losses, gain on sale of available for sale securities, income from FDIC
loan pool impairment, OREO indemnification income
from
FDIC,
other
credit
related
costs
including
losses
on
repossessed
real
estate
and
other
assets,
other
foreclosure
related
expenses., and non-recurring items.
Profitability Metrics
14
Pre-Tax Pre-Provision Income¹
|
 •
Value of core deposits not fully realized in this low rate environment.
•
Approximately
120,213
total
accounts
-
$16,614
average
balance
per
account
Core deposits defined as non-time deposits.
Total Deposits
Number of Deposit Accounts
9
DDA and NOW
12/31/11
12/31/12
Change
% Change
Balance
$767MM
$972MM
$205MM
27%
No. of Accounts
74,528
85,070
10,542
14%
Building Franchise Value with Core Deposits
15 |
 11
Branch Consolidation –
15 ( 11 FDIC / 4 Legacy)
Reduction in Force -
85
Data Processing Conversions –
Complete July 2012
Merger of Subsidiaries –
Complete June 2012
Focus on Efficiency and Core Earnings -
2012
16 |
 10
Efficiency Ratio
Operating Efficiencies
*
Efficiency
Ratio
is
defined
as
follows:
[non-interest
expense
–
intangible
amortization
–
credit
related
expenses
–
merger
related
expenses
–
other
nonrecurring
expense]
/
[net
interest
income
(fully
tax
equivalent)
+
non-interest
income
–
gain
on
sale
of
AFS
securities
–
FDIC
indemnification
revenue
–
nonrecurring
income]
**Efficiency
Ratio,
excluding
Correspondent
Banking
is
defined
as
follows:
[non-interest
expense
–
Correspondent
Banking
non-
interest
expense
–
intangible
amortization
–
credit
related
expenses
–
merger
related
expenses
–
other
nonrecurring
expense]
/
[net
interest
income
(fully
tax
equivalent)
–
Correspondent
Banking
net
interest
income
+
non-interest
income
–
Correspondent
Banking
non-interest
income
–
gain
on
sale
of
AFS
securities
–
FDIC
indemnification
revenue
–
nonrecurring
income]
17 |
 Banking Consolidation |
 Source: SNL
Financial Legacy CSFL Branch
First Guaranty Bank (FDIC)
Central FL State Bank (FDIC)
Three FDIC Acquisitions (3Q 2010)
Federal Trust Acquisition (Nov 2011)
TD Branch Acquisition (Jan 2011)
Jacksonville
Recent M&A Transactions
19 |
 17
42%
Source: SNL Financial
Data as of 12/31/12 or MRQ
Banks with Texas Ratio over 200%
20 |
 18
CSFL Advantages
•
CSFL is one of only five major
exchange traded banks
headquartered in FL with assets
between $1 billion and $10 billion
•
Proven experience through 8
successful acquisitions in the past 3
years
•
Disproportionate number of sellers
versus very few buyers
•
The number of small, distressed
Florida institutions remains high
CSFL –
Best Positioned Florida Consolidator
Source: SNL Financial
Data as of MRQ available
21 |
 •
Lifetime local bankers with common lineage
•
Florida economy improving
•
CSFL metrics improving with better performance anticipated
•
Best positioned consolidator in the state
Summary
22 |
 Appendix
|
 Total
Risk-Based & Tier 1 Leverage 22
•
Two successful capital raises in 2009 and 2010 totaling $114 million
•
First publicly traded bank in Florida to successfully complete a capital raise during
financial crisis in 2009 •
Over
50
“Blue
Chip”
active
institutional
investors
–
Average
daily
volume
(3m)
approximates
46,000
shares
•
Institutions committed to capitalize additional FDIC accretive transactions
Capital
24 |
 Total Loans by
Type Total Loans Detail
Loan Type
No. of
Loans
Balance
Avg Loan
Balance
Residential Real
Estate
4,021
$ 429 MM
$106,700
CRE-Owner
Occupied
721
$ 264 MM
$366,200
CRE-Non Owner
Occupied
477
$ 216 MM
$452,800
Construction,
A&D, & Land
434
$ 56 MM
$129,000
Commercial &
Industrial
1,205
$ 124 MM
$102,900
Consumer & All
Other
2,774
$ 51 MM
$18,400
Total
9,632
$ 1,140 MM
$118,400
Total
Loan
Portfolio
as
of
December
31,
2012
25
Excluding FDIC covered assets |
 Commercial
Real Estate by Type ($MM) Construction Loans by Type ($MM)
25
C&D concentration –
14% vs. 100%
•
55% Owner Occupied
CRE concentration –
107% vs. 300%
CRE
Concentrations
as
of
December
31,
2012
Excluding FDIC covered assets
26 |
 Total
Deposits by Type Total Deposits Detail
23
Total
Deposit
Portfolio
as
of
December
31,
2012
Deposit Type
No. of
Deposits
Balance
Avg Deposit
Balance
Demand
Deposits
37,741
$ 520 MM
$13,800
Now Accounts
47,329
$ 453 MM
$9,600
Savings
Deposits
18,217
$ 238 MM
$13,000
Money Market
3,334
$ 311 MM
$93,400
Certificates of
Deposits
13,592
$ 475 MM
$35,000
Total
120,213
$ 1,997 MM
$16,600
27 |
 Covered Loans
- Average Yields
Covered Loans –
Average Balances
Non-Covered Loans –
Average Balance
Loans –
Yields and Averages
Non-Covered Loans –
Average Yields
* Adjusted for measurement period adjustment.
^ Adjusted for non-accrual loan upgrades
^^ Adjusted for excess cash flows relating to one noncovered loan pool
and a put back loan adjustment
28 |
 8
Costs of Deposits
Yield on Interest Earning Assets
Net Interest Margin
(excluding Correspondent Division)
Net Interest Margin
29 |
 30
($ in thousands)
4Q11
1Q12
2Q12
3Q12
4Q12
Average FDIC covered loans
$167,512
$316,421
$347,191
$327,847
$309,502
Interest accretion
$2,873
$5,265
$6,480
$5,796
$6,001
Yield
6.80%
6.69%
7.51%
7.03%
7.71%
IA accretion (amortization) included in
non interest income
($699)
($537)
($348)
($671)
($1,540)
Interest accretion less IA amortization
$2,174
$4,728
$6,132
$5,125
$4,461
Yield, including IA amortization
5.15%
6.01%
7.10%
6.22%
5.73%
Average IA balance
$52,231
$92,384
$133,503
$127,376
$120,580
Yield, including IA balances
3.93%
4.65%
5.13%
4.48%
4.13%
Indemnification Asset (“IA”) amortization and its
effect on FDIC covered loan interest accretion
IA –
negative accretion
30 |
 Non-Performing Loans ($M)
•
$7,645M
•
OREO & Repos are carried at 42% of Unpaid
Principal Balance
Data as of 6/30/12
OREO & Repo ($M)
•
$25,741M (2.26% of Gross Loans)
•
NPLs are carried at 77% of Unpaid Principal Balance
•
Current NPLs at 36%
NPA
Breakout
as
of
December
31,
2012
31
Excluding FDIC covered assets |
 Net
Charge-Offs (NCOs) Loan Loss Provision (LLP)
Excludes FDIC covered loans
Total Credit Costs
•
Provision expense trending downward
•
Net charge-offs trending downward
•
Total credit cost trending downward
Credit Cost
32 |