Attached files
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| 8-K - FORM 8K - CenterState Bank Corp | d725088d8k.htm |
 Gulf South Bank
Conference
New Orleans
May 12, 2014
Ernest S. Pinner, Chairman & CEO
James J. Antal, Chief Financial Officer
Stephen D. Young, Treasurer (and
chief operating officer of subsidiary
bank)
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 As of 3/31/14
•
Headquartered in Davenport, FL
$3.0 billion in assets
$1.8 billion in loans
$2.6 billion in deposits
•
Company formed: June 2000
1 Subsidiary Bank
51 Branch banking offices
Correspondent Segment
Corporate Overview
4 |
 18
CSFL –
Best Positioned Florida Consolidator
Source: SNL Financial
Data as of MRQ available
5
Ocala National Bank (Jan 2009)
Olde Cypress Community Bank (July 2010)
Independent National Bank of Ocala (Aug 2010)
Community National Bank of Bartow (Aug 2010)
Central Florida State Bank (Jan 2012)
First Guaranty Bank & Trust Co. (Jan 2012)
Federal Trust Acquisition
from
The Hartford Insurance Company (Nov 2011)
TD Bank divesture in Putnam (Jan 2011)
Gulfstream Business Bank in Stuart (Jan 2014)
First Southern Bancorp (Pending)
FDIC Acquisitions
Non-FDIC Acquisitions |
 Gulfstream
Business Bank – Closed January 17, 2014
Offices:
4
Assets:
$545 million
Deposits:
$467 million
Loans:
$376 million
Gulfstream
Highlights
(1)
(1) Financial data as of 12/31/13
Gulfstream (4 branches)
CSFL (55 branches)
6
Port St. Lucie
Stuart
Jupiter
Delray Beach
Lake
Okeechobee
Vero Beach
Fort Pierce |
 7
Efficiency Initiatives
Total fully phased-in expense
reduction –
$6 million annually
Branch closures –
$2.7 million annually
Other restructuring and expense
reductions –
$3.3 million annually
8 branch closings in April 2014 |
 (1)
Based on financial data as of December 31, 2013
Source: CSFL Management, FSOF Management
First Southern Highlights
(1)
Offices:
17
Assets:
$1,093 million
Deposits:
$883 million
Loans:
$635 million
CSFL Branches
CSFL & FSOF Branches
FSOF Branches
First Southern Bancorp, Inc. –
Expected to close June 2014
8 |
 Florida
Trends 9
Source: U.S. Census Bureau and Bureau of Labor Statistics |
 10
Source:
Florida
Realtors
Monthly
Market
Detail
(March
2014)
–
Single
Family
Homes
Florida Real Estate –
Single Family Homes
10
24,000
22,000
20,000
18,000
16,000
14,000
12,000
10,000
$190K
$180K
$170K
$160K
$150K
$140K
$130K
$120K
$110K
190,000
170,000
150,000
130,000
110,000
90,000
70,000 |
 1st
Quarter
Financial
Summary |
 12
1st Quarter Summary of Financial Results
1Q14
4Q13
EPS
$0.03
$0.06
Operating EPS
$0.13
$0.07
•
Merger related expenses
Gulfstream $2,072
First Southern $275
•
Efficiency initiatives-
charges
Impairment charges $2,653
RIF severance $505
•
Efficiency improvements
•
GSB & Branch closures
•
NIM unchanged
•
4.65% vs. 4.65%
•
PCI loans and IA effect
•
ALLL
•
Credit issues in rear view mirror
•
Bond sales
•
First Southern effect
Current Qtr take-aways |
 13
NIM Summary
1. Interest bearing deposits. Does not include non-interest bearing checking
accounts. 13
1Q14
4Q13
Average
Avg
Average
Avg
Balance
Rate
Balance
Rate
Loans
$1,513,060
4.75%
$1,229,868
4.64%
PCI loans
251,587
13.27%
240,804
13.00%
Securities
532,046
3.04%
453,658
2.94%
Fed funds sold and other
197,915
0.49%
161,270
0.52%
Total interest earning assets
$2,494,608
4.91%
$2,085,600
4.92%
Interest
bearing
deposits¹
$1,653,806
0.33%
$1,405,244
0.35%
All other
94,340
1.08%
71,505
0.96%
Total interest bearing liabilities
$1,748,146
0.37%
$1,476,749
0.38%
Net Interest Margin
4.65%
4.65% |
 14
Relationship between Covered loans and FDIC indemnification asset (IA)
14
Covered Loans –
Average Yields*
* As adjusted, excludes accelerated accretion related to ASC 310-10 loans
IA Amortization Expense
At 3/31/14 remaining projected IA to be amortized ($34M) |
 15
Loan Growth, excludes PCI loans
Loan Production by Quarter
•
Avg yld funded loans 4.54%
•
27% Resi
•
33% CRE
•
24% C&I
•
16% all other
•
Loan pipeline:
End of 1Q14: $140M
End of 4Q13: $114M
End of 3Q13: $124M
End of 2Q13: $150M
End of 1Q13: $175M
Current Quarter Loan Production |
 16
16
ALLL –
excluding PCI Loans
FAS 5 Component (excluding Gulfstream)
Total ALLL (excluding PCI loans)
Loan Balance
ALLL
Loans (Fas 5)
$1,218,614
$16,994
1.39%
Gulfstream loans
319,665
---
---
Impaired Loans (Fas 114)
26,555
1,919
7.23%
Total Non-PCI Loans
$1,564,834
$18,913
1.21%
ALLL as a % of NPLs=
62% |
 17
ALLL –
PCI loans
17
FDIC
Not
Total
% of
Covered
Covered
PCI Loans
Legal Bal
Legal Balance
$291,821
$41,540
$333,361
100%
Discount Balance
(72,088)
(10,473)
(82,561)
(25%)
Book Value
$219,733
$31,067
$250,800
75%
ALLL
(1,183)
---
(1,183)
Total, net of ALLL
$218,550
$31,067
$249,617 |
 18
Credit Metrics
Credit Related Expenses
Net Charge-offs
18 |
 EPS
– 6 years
Profitability Metrics
19
EPS & Operating EPS -
5 quarters |
 10
Efficiency Ratio
Operating Efficiencies
20
*
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] |
 Loan Portfolio |
 Total Loans by
Type Total Loans Detail
Loan Type
No. of
Loans
Balance
Avg Loan
Balance
Residential Real
Estate
4,715
$ 495 MM
$105,000
CRE-Owner
Occupied
957
$ 387 MM
$404,400
CRE-Non Owner
Occupied
646
$ 349 MM
$540,200
Construction,
A&D, & Land
465
$ 61 MM
$131,200
Commercial &
Industrial
1,858
$ 218 MM
$117,300
Consumer & All
Other
2,874
$ 55 MM
$19,100
Total
11,515
$ 1,565 MM
$135,900
Total
Loan
Portfolio
as
of
March
31,
2014
Excluding purchased credit-impaired loans
22 |
 Loans, excluding
PCI loans Yields (TEY)
Average Balances
23
New Loan Production –
Average Yields
New Loan Production |
 Covered Loans
– Average Yields*
Covered Loans –
Average Balances
Covered Loans, included in total PCI loans
24
* Excluding accelerated accretion related to ASC 310-10 loans
|
 25
25
FDIC Indemnification Asset
$34M
FDIC
Reimbursement
Write-Off
$43M
Collect from Borrower
(or sale of OREO)
$31M
Expected reimbursements from FDIC for 80% of expected losses
$34M
Previously expected reimbursements for previously expected losses no longer expected
$65M
Total indemnification assets
Written off over the lesser of the remaining expected life of the related loan pool(s) or the
remaining term of the related loss share agreement(s).
Amortization of Indemnification Asset ($34M)
as of March 31, 2014 |
 26
Indemnification Asset (“IA”) amortization and its relationship
with FDIC covered loan interest income accretion
26
Interest Income and Amortization Expense
8 Quarter Average =
4.78%
Yields on Covered Loans and Indemnification Asset |
 Credit Trends
27
NPAs / Loans & OREO (%)
Source: SNL Financial, MRQ presented if current quarter not yet available
Nonperforming assets include loans 90 days or more past due, nonaccrual loans, and
OREO/ORA; and exclude FDIC covered assets Southeastern peers include ABCB, PNFP, RNST,
SCBT, UBSH and UCBI. Florida peers include all banks headquartered in Florida with total
assets between $500 million and $5 billion. |
 Deposit Portfolio |
 Total
Deposits by Type Total Deposits Detail
23
Total
Deposit
Portfolio
as
of
March
31,
2014
Deposit Type
No. of
Deposits
Balance
Avg Deposit
Balance
Demand
Deposits
43,283
$ 839 MM
$19,400
Now Accounts
50,961
$ 559 MM
$11,000
Savings
Deposits
17,487
$ 235 MM
$13,400
Money Market
4,442
$ 482 MM
$108,600
Certificates of
Deposits
11,402
$ 444 MM
$38,900
Total
127,575
$ 2,559 MM
$20,100
29 |
 Core deposits
defined as non-time deposits. Total Deposits
Number of Deposit Accounts (000’s)
Building Franchise Value with Core Deposits
30
Value of core deposits not fully
realized in this low rate environment.
Approximately 127,575 total accounts
-
$20,056 average balance per account
Cost of Deposits |
 |
 Appendix
|
 1.
Assumes 8% capital allocation. Correspondent Analysis
33
Correspondent Earnings Ratios
2009
2010
2011
2012
2013
ROE
38.06%
59.07%
33.14%
58.80%
15.99%
ROA
3.04%
4.73%
2.65%
4.70%
1.28%
Net Capital Mkt Revenue
Fixed Non-Interest
Expense
Net Interest Income
Net Income
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
2009
2010
2011
2012
2013
Correspondent Income Analysis
1 |
 Correspondent
Analysis 34
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
2009
2010
2011
2012
2013
Recurring Revenue
International
Clearing/Fed Funds
BA / SK
Asset Liability |