EX-99.1 2 csfl-ex991_6.htm EX-99.1 csfl-ex991_6.htm

Exhibit 99.1

 

 

 

 

FOR IMMEDIATE RELEASE

April 25, 2016

 

 

 

CenterState closes two acquisitions, terminates FDIC loss share agreements and reports strong first quarter 2016 operating results

 

DAVENPORT, FL. – April 25, 2016 - CenterState Banks, Inc. (Nasdaq: CSFL) reported a net loss of $4,804 or $0.10 per share for the first quarter of 2016, compared to earnings per share (“EPS”) of $0.23 on net income of $10,396 reported during the prior quarter.  

 

 

 

per

 

 

per

 

 

per

 

1Q16

share

 

4Q15

share

 

1Q15

share

Net operating income

$14,133

$0.30

 

$10,790

$0.23

 

$9,176

$0.20

FDIC loss share termination, net of taxes

(11,514)

(0.25)

 

---

---

 

---

---

Merger related expenses, net of taxes

(7,325)

(0.15)

 

(334)

0.00

 

---

---

Other, net of taxes

(98)

0.00

 

(60)

0.00

 

(28)

  0.00

Net (loss) income

($4,804)

($0.10)

 

$10,396

$0.23

 

$9,148

$0.20

 

 

 

 

 

 

 

 

 

Net operating income ROA (annualized)

1.30%

 

 

1.06%

 

 

0.97%

 

Efficiency ratio

58%

 

 

61%

 

 

66%

 

Net operating income return on average

 

 

 

 

 

 

 

 

     common tangible equity (annualized)

14.6%

 

 

10.9%

 

 

10.0%

 

 

Net operating income per share for the current quarter was $0.30 compared to $0.23 in the prior quarter.  As shown in the table above, the primary reason for the difference between net operating income per share (non-gaap) and net loss per share (gaap) during the current quarter was the termination expenses for all outstanding FDIC loss share agreements and merger related expenses.  All amounts are in thousands, except per share information, and all earnings per share amounts are reported on a diluted basis unless otherwise noted.  

 

CURRENT QUARTER HIGHLIGHTS

 

 

 

·

Closed both Homestead, Florida bank acquisitions on March 1st, and converted the core systems of the larger one into the Company’s core systems on March 11th.  The second bank is scheduled to be converted in May.  Management estimates that the combined banks would be mid-teens EPS accretive in 2017.  

 

 

·

Terminated all remaining FDIC loss share agreements in early February eliminating approximately $9.1 million of estimated Indemnification Asset amortization expense in 2016.  The Company will no longer share any future recoveries with the FDIC related to these agreements.  

 

1

 

 

·

10% linked quarter annualized increase in loans during the first quarter, excluding Purchased Credit Impaired (“PCI”) loans and acquisition date loan balances from the two Homestead, Florida bank transactions.   

 

·

21% linked quarter annualized increase in deposits during the first quarter, excluding acquisition date deposit balances from the two Homestead, Florida bank transactions.  The increase is primarily in commercial checking accounts.  See page 4.

 

Quarterly condensed consolidated income statements (unaudited) are shown below for the periods indicated.  See note 1 below for a discussion related to FDIC revenue and amortization (negative accretion) included in non-interest income.

 

Quarterly Condensed Consolidated Statements of Operations (unaudited)

For the quarter ended:

   3/31/16

   12/31/15

   9/30/15

   6/30/15

   3/31/15

Interest income

$ 43,498

$ 41,098

$ 40,112

$ 41,625

$ 39,485

Interest expense

2,023

1,819

1,784

1,818

1,865

Net interest income

41,475

39,279

38,328

39,807

37,620

Provision for loan losses

511

484

4

2,330

1,941

Recovery for loan losses- PCI loans

(1)

59

(4)

(22)

(299)

Net interest income after loan loss provision

40,965

38,736

38,328

37,499

35,978

 

 

 

 

 

 

Correspondent banking and capital markets division- income

8,775

6,241

5,935

8,587

6,800

Gain on sale of securities available for sale

---

---

4

---

---

FDIC- IA amortization (negative accretion) (1)

(1,166)

(3,420)

(4,144)

(4,649)

(4,350)

FDIC- revenue (1)

96

633

27

359

667

Gain on early extinguishment of debt

308

---

---

---

---

All other non-interest  income

6,548

6,212

6,308

6,276

5,964

Total non interest income

14,561

9,666

8,130

10,573

9,081

 

 

 

 

 

 

Credit related expenses

359

1,306

393

1,147

(551)

Correspondent banking and capital markets division-expense

5,782

5,094

5,063

6,008

5,595

Merger and acquisition related expenses

11,172

524

169

---

---

Impairment of Branch real estate held for sale

456

94

12

(16)

641

Termination of FDIC loss share agreements (1)

17,560

---

---

---

---

All other non-interest  expense

27,524

25,068

25,218

25,399

24,918

Total non interest expense

62,853

32,086

30,855

32,538

30,603

 

 

 

 

 

 

Income before income tax

(7,327)

16,316

15,603

15,534

14,456

Income tax (benefit) provision  

(2,523)

5,920

5,687

5,656

5,308

NET (LOSS) INCOME  

$ (4,804)

$ 10,396

$ 9,916

$ 9,878

$ 9,148

Net (loss) income allocated to common shares

$ (4,804)

$ 10,343

$ 9,862

$ 9,823

$ 9,097

 

 

 

 

 

 

(Loss)/earnings per share (basic) (GAAP)

$ (0.10)

$  0.23

$  0.22

$  0.22

$  0.20

(Loss)/earnings per share (diluted) (GAAP)

$ (0.10)

$  0.23

$  0.22

$  0.21

$  0.20

Net operating income per share (Non-GAAP) (2)

$    0.30

$  0.23

$  0.22

$  0.22

$  0.20

 

 

 

 

 

 

Average common shares outstanding (basic)

46,343

45,237

45,200

45,161

45,128

Average common shares outstanding (diluted)

46,343

45,935

45,826

45,737

45,658

Common shares outstanding at period end

47,943

45,459

45,469

45,421

45,409

 

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, the claw back liability received cash from the FDIC and recognized a loss on the transaction of approximately $17,560 during the current quarter.  

 

note 2:  This non-gaap metric represents gaap net income excluding certain income and expense items net of the effective tax rate for the period presented.  Items excluded are gains on sales of securities held for sale, acquisition and merger related expenses, expenses related to the termination of FDIC loss share agreements and charges related to the Company’s efficiency and profitability initiatives announced in January 2014, which include impairment charges on the real estate of several of the branches closed during April 2014, divided by the average diluted common shares outstanding.  A reconciliation table is presented on page 17, Explanation of Certain Unaudited Non-GAAP Financial Measures.

2

 

 

LOAN PRODUCTION

 

Loans, excluding PCI loans and excluding the Homestead non-PCI acquisition date loan balances, increased $59,351 during the first quarter, an annualized growth rate of approximately 10%. Total new loans originated during the quarter approximated $226.4 million, of which $188.9 million were funded.  About 41% of funded loan origination was commercial real estate (“CRE”), 27% commercial and industrial (“C&I”), 17% single family residential, 11% land, development & construction and 4% were all other.

Approximately 48% of the funded loan production was floating rate, 12% were other variable rate and 40% were fixed rate.  The loan origination pipeline is approximately $354 million at March 31, 2016 compared to $266 million at December 31, 2015.  The graph above summarizes total loan production and funded loan production over the past nine quarters.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


3

 

 

DEPOSIT ACTIVITY

 

On March 1, 2016, the Company completed its acquisition of Community and Hometown.  The fair value of the deposits assumed from the two acquisitions was approximately $705,912 as summarized in the table below.  

 

Community and Hometown deposit mix, at fair value, as of the

 

 

March 1, 2016 acquisition date (unaudited)

 

 

Checking accounts

 

 

   Non-interest bearing

 

$236,748

   Interest bearing

 

37,465

Savings deposits

 

91,732

Money market accounts

 

128,231

Time deposits

 

211,736

Total deposits

 

$705,912

 

 

 

Non time deposits as percentage of total deposits

 

70%

Time deposits as percentage of total deposits

 

30%

Total deposits

 

100%

 

During the quarter, the Company’s total deposits increased by $171,077, or approximately 21% on an annualized basis, excluding the acquisition balances acquired from Community and Hometown.  The total increase was due from increases of approximately $158,594 in checking accounts, primarily non-interest bearing commercial checking accounts.     

 

The cost of interest bearing deposits in the current quarter was 0.26%, the same as in the prior quarter.  The overall cost of total deposits (i.e. includes non-interest bearing checking accounts) during the current quarter was 0.17% compared to 0.16% in the prior quarter.  The table below summarizes the Company’s deposit mix over the periods indicated.    

 

Deposit mix (unaudited)    

For the quarter ended:

3/31/16

12/31/15

9/30/15

6/30/15

3/31/15

Checking accounts

 

 

 

 

 

     Non-interest bearing

$1,489,530

$1,133,138

$1,145,474

$1,127,591

$1,112,282

     Interest bearing

756,129

679,714

621,582

621,473

623,370

Savings deposits

341,864

241,605

249,292

240,528

242,782

Money market accounts

872,219

738,301

734,363

706,647

711,903

Time deposits

632,425

422,420

434,478

440,276

459,035

Total deposits

$4,092,167

$3,215,178

$3,185,189

$3,136,515

$3,149,372

 

 

 

 

 

 

Non time deposits as percentage of total deposits

85%

87%

86%

86%

85%

Time deposits as percentage of total deposits

15%

13%

14%

14%

15%

Total deposits

100%

100%

100%

100%

100%

 

 

 

 

 

 

 


4

 

NET INTEREST MARGIN (“NIM”)

 

The Company’s NIM decreased from 4.37% in 4Q15 to 4.35% in 1Q16.  The simple and short answer for this decrease was due to the mix of interest earning assets between the two quarters.  Higher average balances in lower yielding assets, such as taxable securities and federal funds sold, and lower average balances in higher yielding assets, such as PCI loans, in the current quarter compared to the prior quarter.  

 

The Company acquired two banks, Community and Hometown (the “Homestead” banks), on March 1, 2016.  As such, the acquired assets and assumed liabilities were included in the current quarter averages, but only for one month.  Non-PCI loan average yields increased 4 bps in the current quarter compared to the prior quarter as a result of the acquisition of higher yielding loans acquired from the Homestead banks, plus the positive effect of the December 2015 Fed rate increase, less the offsetting effect of the average interest rate on new loan production during the current quarter of approximately 3.6%.  Until the Company’s new loan production average interest rate approximates the average rate on its existing non-PCI loan portfolio, each quarter’s new loan production will have a contracting effect on the average yield of its existing non-PCI loan portfolio.  

 

PCI loan yields decreased 12 bps in the current quarter compared to the prior quarter primarily due to adding the Homestead banks’ PCI loans which had an average yield of approximately 8.32%.  Although the average blended interest rate on this portfolio is lower when these new loans are added, the interest income amount will be larger which produces a positive effect on the Company’s NIM.  

 

If the PCI loans were producing a yield similar to the Company’s non-PCI loans, the NIMs during the current quarter and previous quarter would have been approximately 3.68% and 3.61%, respectively, a 7 bps increase between the linked quarters.

 

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)    

 

 

1Q16

 

 

 

4Q15

 

 

 

1Q15

 

 

average

interest

avg

 

average

interest

avg

 

average

interest

avg

 

balance

inc/exp

rate

 

balance

inc/exp

rate

 

balance

inc/exp

rate

Loans (TEY)*

$2,569,240

$28,489

4.46%

 

$2,363,060

$26,337

4.42%

 

$ 2,172,621

$24,482

4.57%

PCI loans

214,998

8,908

16.66%

 

222,685

9,420

16.78%

 

271,135

9,930

14.85%

Taxable securities

791,292

5,062

2.57%

 

737,057

4,480

2.41%

 

688,027

4,282

2.52%

Tax -exempt securities (TEY)

98,196

1,186

4.86%

 

85,329

1,076

5.00%

 

63,792

819

5.21%

Fed funds sold and other

225,302

538

0.96%

 

211,112

403

0.76%

 

211,247

396

0.76%

Tot. interest earning assets(TEY)

$3,899,028

$44,183

4.56%

 

$3,619,243

$41,716

4.57%

 

$3,406,822

$39,909

4.75%

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits

$2,266,700

$1,481

0.26%

 

$2,072,838

$1,351

0.26%

 

$2,034,864

$1,447

0.29%

Fed funds purchased

197,335

262

0.53%

 

203,413

186

0.36%

 

176,109

132

0.30%

Other borrowings

34,285

32

0.38%

 

27,061

36

0.53%

 

30,744

49

0.65%

Corporate debentures

21,052

248

4.74%

 

24,070

246

4.05%

 

23,939

237

4.02%

Total interest bearing liabilities

$2,519,372

$2,023

0.32%

 

$2,327,382

$1,819

0.31%

 

$2,265,656

$1,865

0.33%

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Spread (TEY)

 

 

4.24%

 

 

 

4.26%

 

 

 

4.42%

Net Interest Margin (TEY)

 

 

4.35%

 

 

 

4.37%

 

 

 

4.53%

*TEY = tax equivalent yield

 

5

 

 

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)

 

 

 

 

For the quarter ended:

3/31/16

12/31/15

9/30/15

6/30/15

3/31/15

Yield on loans (TEY)*

4.46%

4.42%

4.38%

4.59%

4.57%

Yield on PCI loans

16.66%

16.78%

16.27%

17.75%

14.85%

Yield on securities (TEY)

2.83%

2.68%

2.59%

2.53%

2.75%

Yield on fed funds sold and other

0.96%

0.76%

0.85%

0.87%

0.76%

Yield on total interest earning assets

4.49%

4.51%

4.57%

4.87%

4.70%

Yield on total interest earning assets (TEY)

4.56%

4.57%

4.64%

4.93%

4.75%

Cost of interest bearing deposits

0.26%

0.26%

0.26%

0.27%

0.29%

Cost of fed funds purchased

0.53%

0.36%

0.34%

0.33%

0.30%

Cost of other borrowings

0.38%

0.53%

0.65%

0.62%

0.65%

Cost of corporate debentures

4.74%

4.05%

4.03%

4.03%

4.02%

Cost of interest bearing liabilities

0.32%

0.31%

0.31%

0.32%

0.33%

Net interest margin (TEY)

4.35%

4.37%

4.44%

4.72%

4.53%

Cost of total deposits

0.17%

0.16%

0.17%

0.17%

0.19%

 

*TEY = tax equivalent yield

 

 

The table below summarizes selected financial ratios over the prior five quarters.

 

Selected financial ratios (unaudited)

 

 

 

 

 

As of or for the quarter ended:

3/31/16

12/31/15

9/30/15

6/30/15

3/31/15

Return on average assets (annualized)

(0.44)%

1.02%

1.01%

1.02%

0.96%

Net operating income return on  

 

 

 

 

 

     average assets (annualized)

1.30%

1.06%

1.02%

1.02%

0.97%

Return on average equity (annualized)

(3.88)%

8.52%

8.28%

8.49%

8.10%

Return on average tangible equity (annualized)

(4.95)%

10.47%

10.23%

10.42%

10.00%

Net operating income return on

 

 

 

 

 

     average tangible equity (annualized)

14.56%

10.86%

10.35%

10.41%

10.04%

Loan / deposit ratio

76.9%

80.7%

80.5%

80.7%

78.3%

Stockholders’ equity (to total assets)

10.5%

12.2%

12.2%

12.1%

11.9%

Common tangible equity (to total tangible assets)

8.2%

10.2%

10.1%

10.0%

9.8%

Tier 1 capital (to average assets)

9.6%

10.5%

10.6%

10.4%

10.0%

Efficiency ratio, including correspondent banking (note 1)

57.9%

60.6%

63.1%

60.9%

65.5%

Efficiency ratio, excluding correspondent banking (note 2)

57.9 %

59.2 %

61.0 %

60.1 %

64.0 %

Common equity per common share

$10.84

$10.79

$10.55

$10.31

$10.20

Common tangible equity per common share

$8.25

$8.82

$8.57

$8.31

$8.18

 

note 1:    Numerator equals non-interest expense less non-recurring expenses (e.g. merger costs, bank property impairment, etc.) less intangible amortization (both CDI and Trust intangible) less credit related expenses. Denominator equals net interest income on a taxable equivalent yield basis (“TEY”) before the provision for loan losses plus non-interest income less non-recurring income (e.g. gain on sale of securities available for sale, etc.) less FDIC income related to losses on the sales of covered OREO properties and impairment of loan pool(s) covered by FDIC loss share arrangements.

note 2:    Numerator starts with the same numerator as in “note 1”, less correspondent bank non-interest expense, including indirect expense allocations. Denominator starts with the same denominator as in “note 1”, less correspondent bank net interest income and less correspondent bank non-interest income.

 

 

 

 

6

 

LOAN MIX

 

The table below summarizes the Company’s loan mix over the most recent five quarter ends.

 

 

Loan mix (unaudited)

 

 

 

 

 

At quarter ended:

3/31/16

12/31/15

9/30/15

6/30/15

3/31/15

Originated Loans

 

 

 

 

 

Real estate loans

 

 

 

 

 

     Residential

$507,835

$491,149

$472,685

$452,733

$428,564

     Commercial

824,702

781,419

740,877

686,825

614,797

     Land, development and construction loans        

99,605

91,817

85,116

77,089

65,357

Total real estate loans

1,432,142

1,364,385

1,298,678

1,216,647

1,108,718

Commercial loans

290,658

251,855

236,526

235,655

218,208

Consumer and other loans

69,528

67,026

64,913

60,741

57,947

Total loans before unearned fees and costs

1,792,328

1,683,266

1,600,117

1,513,043

1,384,873

Unearned fees and costs

796

873

378

411

790

Total originated loans  

1,793,124

1,684,139

1,600,495

1,513,454

1,385,663

 

 

 

 

 

 

Acquired Loans (1)

 

 

 

 

 

Real estate loans

 

 

 

 

 

     Residential

291,886

156,347

161,421

168,064

176,247

     Commercial

705,877

473,363

493,506

516,814

539,885

     Land, development and construction loans        

31,541

13,459

15,084

18,931

19,829

Total real estate loans

1,029,304

643,169

670,011

703,809

735,961

Commercial loans

82,970

55,466

60,863

65,960

79,234

Consumer and other loans

6,307

474

484

404

537

Total acquired loans  

1,118,581

699,109

731,358

770,173

815,732

 

 

 

 

 

 

PCI loans

 

 

 

 

 

Real estate loans

 

 

 

 

 

     Residential

82,595

86,104

92,243

96,674

101,365

     Commercial

127,354

105,629

119,379

126,058

131,270

     Land, development and construction loans        

19,912

15,548

16,851

21,546

24,294

Total real estate loans

229,861

207,281

228,473

244,278

256,929

Commercial loans

6,020

2,771

2,848

2,735

5,615

Consumer and other loans

635

476

457

516

724

Total PCI loans  

236,516

210,528

231,778

247,529

263,268

 

 

 

 

 

 

Total Loans

$3,148,221

$2,593,776

$2,563,631

$2,531,156

$2,464,663

 

 

 

(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 Bank acquisition (year 2014);

 

o

First Southern Bank acquisition (year 2014);

 

o

Community Bank of South Florida Bank acquisition (year 2016); and

 

o

Hometown of Homestead Banking Company (year 2016).

 

 

 

 

 

 

 

 

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 March 31, 2016.  

 

 

unpaid

 

 

 

 

principal

carrying

 

 

 

balance

balance

difference

percentage

Total PCI loans

$308,452

$ 236,516

($71,936)

23%

 

 

CREDIT QUALITY AND ALLOWANCE FOR LOAN LOSSES

 

During the quarter, the Company recorded a loan loss provision expense of $510 and recoveries net of charge-offs of $348, resulting in an increase in the allowance for loan losses of $858 as shown in the table below.

 

The total allowance for loan losses (“ALLL") was $23,122 at March 31, 2016 compared to $22,264 at December 31, 2015, an increase of $858.  This increase is the result of the aggregate effect of: (1) an increase of $1,102 in originated loans ($1,091 in general loan loss allowance and $11 in specific loan loss allowance); (2) a decrease of $243 in acquired loans ($236 in general loan loss allowance and $7 in specific loan loss allowance); and (3) a decrease of $1 in the allowance for loan losses on PCI loans.  The changes in the Company’s ALLL components between March 31, 2016 and December 31, 2015 are summarized in the table below.

 

 

March 31, 2016

 

Dec 31, 2015

 

increase (decrease)

 

loan

ALLL

 

 

loan

ALLL

 

 

loan

ALLL

 

 

balance

balance

%

 

balance

balance

%

 

balance

balance

 

Originated loans

$1,768,628

$ 18,417

1.04%

 

$1,664,056

$ 17,326

1.04%

 

$ 104,572

$ 1,091

--- bps

Impaired originated loans

24,496

768

3.14%

 

20,083

757

3.77%

 

4,413

11

(63) bps

Total originated loans

1,793,124

19,185

1.07%

 

1,684,139

18,083

1.07%

 

108,985

1,102

--- bps

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans (2)

1,115,163

3,501

0.31%

 

696,017

3,737

0.54%

 

419,146

(236)

(23) bps

Impaired acquired loans (1)

3,418

316

9.25%

 

3,092

323

10.45%

 

326

(7)

(120)bps

Total acquired loans

1,118,581

3,817

0.34%

 

699,109

4,060

0.58%

 

419,472

(243)

(24) bps

 

 

 

 

 

 

 

 

 

 

 

 

Total non-PCI loans

2,911,705

23,002

 

 

2,383,248

22,143

 

 

528,457

859

 

PCI loans

236,516

120

 

 

210,528

121

 

 

25,988

(1)

 

Total loans

$3,148,221

$23,122

 

 

$2,593,776

$22,264

 

 

$ 554,445

$858

 

 

 

(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 March 31, 2016 was approximately $19,030 or 1.7% 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 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 $1,091 resulting primarily from an increase in loans outstanding.  

 

8

 

The general loan loss allowance (non-impaired loans) relating to acquired loans decreased by $236 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 current quarter.  At March 31, 2016 the loans acquired from these two acquisitions were equal to approximately $456,398.  These loans were recorded at estimated fair value at the March 1, 2016 acquisition date.  As such, there is no allowance for loan losses associated with these loans as of March 31, 2016.  The unamortized acquisition date fair value adjustment related to these loans at March 31, 2016 was approximately $10,162, or 2.2% 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 March 31, 2016 are equal to $27,914 ($24,496 originated impaired loans plus $3,418 acquired impaired loans).  Approximately $13,394 of the Company’s impaired loans (48%) are accruing performing loans.  This group of impaired loans is not included in the Company’s non-performing loans or non-performing assets categories.  

 

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 March 31, 2016.  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

3/31/16

12/31/15

9/30/15

6/30/15

3/31/15

Loans, excluding PCI loans

 

 

 

 

Allowance at beginning of period

$ 22,143

$ 22,586

$ 22,818

$ 20,842

$ 19,384

Charge-offs

(495)

(1,266)

(893)

(783)

(949)

Recoveries

843

339

657

429

466

Net recoveries (charge-offs)

348

(927)

(236)

(354)

(483)

Provision for loan losses

511

484

4

2,330

1,941

Allowance at end of period for loans  

 

 

 

 

 

     other than PCI loans

$ 23,002

$ 22,143

$ 22,586

$ 22,818

$ 20,842

 

 

 

 

 

 

PCI loans

 

 

 

 

Allowance at beginning of period

$ 121

$ 62

$ 116

$ 138

$ 514

Charge-offs

---

---

(50)

---

(77)

Recoveries

---

---

---

---

---

Net charge-offs

---

---

(50)

---

(77)

(Recovery) provision for loan losses

(1)

59

(4)

(22)

(299)

Allowance at end of period for  

 

 

 

 

 

     PCI loans

$   120

$   121

$   62

$   116

$    138

Total allowance at end of period

$ 23,122

$ 22,264

$ 22,648

$ 22,934

$ 20,980

 

 

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:

3/31/16

12/31/15

9/30/15

6/30/15

3/31/15

Troubled debt restructure (“TDRs”) (note 1)

$  15,350

$  15,127

$  15,204

$  15,659

$  14,666

Impaired loans that were not TDRs

12,564

8,048

6,654

7,187

7,516

Total impaired loans

  27,914

  23,175

  21,858

  22,846

  22,182

Originated non-impaired loans    

1,768,628

1,664,056

1,580,791

1,493,163

1,363,481

Acquired non-impaired loans

1,115,163

696,017

729,204

767,618

815,732

Total Non-PCI loans

2,911,705

2,383,248

2,331,853

2,283,627

2,201,395

Total PCI loans

236,516

210,528

231,778

247,529

263,268

Total loans

$3,148,221

$2,593,776

$2,563,631

$2,531,156

$2,464,663

ALLL for Non-PCI loans

 

 

 

General loan loss allowance- originated loans

$ 18,417

$ 17,326

$ 16,824

$ 16,165

$ 15,319

General loan loss allowance- acquired loans

3,501

3,737

4,550

4,817

4,422

Specific loan loss allowance- impaired loans

1,084

1,080

1,212

1,836

1,101

Total allowance for loan losses (note 2)

$ 23,002

$ 22,143

$ 22,586

$ 22,818

$ 20,842

ALLL as a percentage of period end loans:

 

 

 

 

 

Total Originated non-impaired loans

1.04%

1.04%

1.06%

1.08%

1.12%

Total Acquired non-impaired loans (note 3)

0.31%

0.54%

0.62%

0.63%

0.54%

Total impaired loans

3.88%

4.66%

5.54%

8.04%

4.96%

 

note 1:  The Company has approximately $15,350 of TDRs.  Of this amount $9,969 are performing pursuant to their modified terms, and $5,381 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 (“Hometown”) and Community Bank of South Florida, Inc. (“Community”) are included in the 3/31/16 acquired loan balances in the table above.  These loans were recorded at estimated fair value as of the acquisition date, and as such 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 non-performing loans (“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 0.85% at March 31, 2016 compared to 0.87% at December 31, 2015.    

 

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), excluding OREO covered by FDIC loss share agreement; and (b) other repossessed assets that are not real estate, and are not covered by FDIC loss share agreement) were $40,888 at March 31, 2016, compared to $22,545 at December 31, 2015.  NPAs as a percentage of total assets was 0.82% at March 31, 2016 compared to 0.56% at December 31, 2015.  NPAs as a percentage of loans plus OREO and other repossessed assets, excluding PCI loans and OREO covered by FDIC loss share agreements, was 1.40% at March 31, 2016 compared to 0.95% at December 31, 2015.  The increases in the preceding three metrics were primarily due to the termination of the FDIC loss share agreements in February 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:

3/31/16

12/31/15

9/30/15

6/30/15

3/31/15

Non-accrual loans (note 1)

$24,865

$20,833

$22,450

$25,028

$26,857

Past due loans 90 days or more

 

 

 

 

 

     and still accruing interest (note 1)

---

---

---

---

---

Total non-performing loans (“NPLs”) (note 1)

24,865

20,833

22,450

25,028

26,857

Other real estate owned (“OREO”) (note 2)

15,937

1,567

2,993

4,691

7,586

Repossessed assets other than real estate (note 1)

86

145

106

172

139

Total non-performing assets (“NPAs”) (note 2)

$40,888

$22,545

$25,549

$29,891

$34,582

OREO covered by FDIC loss share agreements:

 

 

 

 

 

     80% covered

---

4,828

3,661

6,531

4,716

     75% covered

---

---

---

---

---

     70% covered

---

---

297

249

249

     30% covered

---

4,742

3,729

5,224

8,563

       0% covered

---

59

---

---

---

Total non-performing assets including

 

 

 

 

 

     FDIC covered OREO

$40,888

$32,174

$33,236

$41,895

$48,110

Non-performing loans as percentage of total

 

 

 

 

 

    loans excluding PCI loans

0.85%

0.87%

0.96%

1.10%

1.22%

Non-performing assets as percentage of total assets

 

 

 

 

 

     Excluding FDIC covered OREO

0.82%

0.56%

0.65%

0.77%

0.89%

     Including FDIC covered OREO

0.82%

0.80%

0.85%

1.08%

1.24%

Non-performing assets as percentage of loans and

 

 

 

 

 

   OREO plus other repossessed assets (note 1)

 

 

 

 

 

     Excluding FDIC covered OREO

1.40%

0.95%

1.09%

1.31%

1.57%

     Including FDIC covered OREO

1.40%

1.34%

1.42%

1.82%

2.16%

Loans past due 30 thru 89 days and accruing interest

 

 

 

 

 

    as a percentage of total loans (note 1)

0.40%

0.62%

0.67%

0.51%

0.61%

Net (recovery) charge-offs (note 1)

$(348)

$927

$236

$354

$483

Net (recovery) charge-offs as a percentage

 

 

 

 

 

    of average loans for the period (note 1)

(0.01%)

0.04%

0.01%

0.02%

0.02%

Net (recovery) charge-offs as a percentage of average

 

 

 

 

 

    loans for the period on an annualized basis (note 1)

(0.05%)

0.16%

0.04%

0.06%

0.09%

Allowance for loan losses as percentage of NPLs  (note 1)

93%

106%

101%

91%

78%

 

note 1:  Excludes PCI loans.

note 2:  Excludes OREO covered by FDIC loss share agreements in prior periods presented.  All FDIC loss sharing agreements were terminated during the first quarter of 2016, as such no OREO was covered at March 31, 2016.

 

 

 

 

 

 

 

 

 

 

 

 

 

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:

3/31/16

12/31/15

9/30/15

6/30/15

3/31/15

Net interest income

$1,802

$1,716

$1,545

$1,467

$1,602

Provision for loan losses

(52)

(4)

1

(24)

(131)

Total non-interest income (note 1)

8,775

6,241

5,935

8,587

6,800

Total non-interest expense (note 2)

(5,782)

(5,094)

(5,063)

(6,008)

(5,595)

Income tax provision

(1,830)

(1,103)

(934)

(1,551)

(1,032)

Net income

$  2,913

$  1,756

$  1,484

$  2,471

$  1,644

Contribution to diluted earnings per share

$ 0.06

$ 0.04

$ 0.03

$ 0.05

$ 0.04

 

 

 

 

 

 

Allocation of indirect expense net of

 

 

 

 

 

   inter-company earnings credit, net of

 

 

 

 

 

   income tax benefit (note 3)

$(340)

$(174)

$(304)

$(262)

$(276)

Contribution to diluted earnings per share after

 

 

 

 

 

    deduction of allocated indirect expenses

$ 0.06

$ 0.03

$ 0.03

$ 0.05

$ 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 $7,371, $5,254, $4,943, $7,334 and $5,694 for 1Q16, 4Q15,  3Q15, 2Q15 and 1Q15, 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 $3,352, $2,505, $2,388, $3,461 and $2,938 for 1Q16, 4Q15, 3Q15, 2Q15 and 1Q15, 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

 

Presented below are condensed consolidated balance sheets and average balance sheets for the periods indicated.

 

Condensed Consolidated Balance Sheets (unaudited)

 

 

 

For the quarter ended:

3/31/16

12/31/15

9/30/15

6/30/15

3/31/15

Cash and due from banks

$      65,560

$      50,902

$      42,624

$      50,317

$      59,295

Fed funds sold and Fed Res Bank deposits

296,459

101,580

185,807

104,805

197,046

Trading securities

2,719

2,107

1,266

1,508

1,017

Investment securities, available for sale

707,573

604,739

490,458

532,440

520,247

Investment securities, held to maturity

256,849

272,840

248,310

250,482

228,870

Loans held for sale

2,186

1,529

806

1,656

522

PCI loans

236,516

210,528

231,778

247,529

263,268

Loans

2,911,705

2,383,248

2,331,853

2,283,627

2,201,395

Allowance for loan losses

(23,122)

(22,264)

(22,648)

(22,934)

(20,980)

FDIC indemnification assets

---

25,795

28,596

36,157

41,594

Premises and equipment, net

116,734

101,821

102,675

101,079

100,526

Goodwill

105,492

76,739

76,739

76,739

76,739

Core deposit intangible

17,803

12,164

12,744

13,186

13,789

Bank owned life insurance

86,455

85,890

85,316

84,736

84,137

OREO covered by FDIC loss share agreements

---

9,629

7,687

12,004

13,528

OREO not covered by FDIC loss share agreements

15,937

1,567

2,993

4,691

7,586

Deferred income tax asset, net

69,470

46,220

47,516

49,704

48,502

Other assets

101,319

57,683

58,552

45,483

51,491

TOTAL ASSETS

$    4,969,655

$    4,022,717

$    3,933,072

$    3,873,209

$    3,888,572

 

 

 

 

 

 

Deposits

$    4,092,167

$    3,215,178

$    3,185,189

$    3,136,515

$    3,149,372

Federal funds purchased

225,298

200,250

161,303

171,219

187,443

Other borrowings

57,906

76,565

52,561

64,203

55,032

Other liabilities

74,823

40,210

54,207

32,836

33,660

Common stockholders’ equity

519,461

490,514

479,812

468,436

463,065

TOTAL LIABILITIES AND

 

 

 

 

 

     STOCKHOLDERS’ EQUITY

$    4,969,655

$    4,022,717

$    3,933,072

$    3,873,209

$    3,888,572

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidated Average Balance Sheets (unaudited)

 

 

 

For quarter ended:

3/31/16

12/31/15

9/30/15

6/30/15

3/31/15

Federal funds sold and other

$      225,302

$      211,112

$      165,927

$      170,139

$      211,247

Security investments

889,488

822,386

767,268

764,359

751,819

PCI loans

214,998

222,685

241,393

257,581

271,135

Loans

2,569,240

2,363,060

2,306,751

2,237,178

2,172,621

Allowance for loan losses

(22,616)

(22,078)

(22,890)

(20,107)

(20,980)

All other assets

479,454

458,087

455,067

479,645

468,645

TOTAL ASSETS

$    4,355,866

$    4,055,252

$    3,913,516

$    3,888,795

$    3,854,487

 

 

 

 

 

 

Deposits- interest bearing

$    2,266,700

$    2,072,838

$    2,033,045

$    2,014,726

$    2,034,864

Deposits- non interest bearing

1,282,422

1,194,763

1,136,788

1,127,639

1,098,236

Federal funds purchased

197,335

203,413

173,575

184,525

176,109

Other borrowings

55,337

51,131

55,382

58,920

54,683

Other liabilities

56,650

48,969

39,740

36,138

32,373

Stockholders’ equity

497,422

484,138

474,986

466,847

458,222

TOTAL LIABILITIES AND

 

 

 

 

 

     STOCKHOLDERS’ EQUITY

$    4,355,866

$    4,055,252

$    3,913,516

$    3,888,795

$    3,854,487

 

 

 

13

 

Condensed Consolidated Earnings Statement (unaudited)

For quarter ended:

3/31/16

12/31/15

9/30/15

6/30/15

3/31/15

 

 

 

 

 

 

Interest income:

 

 

 

 

 

Loans

$37,118

$35,508

$35,134

$36,786

$34,268

Investments

5,842

5,187

4,623

4,470

4,821

Federal funds sold and other

538

403

355

369

396

Total interest income

43,498

41,098

40,112

41,625

39,485

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

Deposits

1,481

1,351

1,339

1,369

1,447

Securities sold under agreement to repurchase

27

32

51

54

49

Federal funds purchased

267

190

150

154

132

Corporate debentures

248

246

244

241

237

Total interest expense

2,023

1,819

1,784

1,818

1,865

 

 

 

 

 

 

Net interest income

41,475

39,279

38,328

39,807

37,620

Provision for loan losses

510

543

---

2,308

1,642

Net interest income after loan loss provision

40,965

38,736

38,328

37,499

35,978

 

 

 

 

 

 

Non interest income (see page 16)

14,561

9,666

8,130

10,573

9,081

 

 

 

 

 

 

Non interest expense:

 

 

 

 

 

Salaries, wages and employee benefits

21,455

18,977

18,916

19,925

19,580

Occupancy expense

2,147

1,986

2,203

2,131

2,080

Depreciation of premises and equipment

1,497

1,442

1,438

1,403

1,433

Data processing expense

1,527

1,443

1,536

1,562

1,695

Legal, audit and other professional fees

903

750

779

690

735

Amortization of intangibles

678

616

615

640

666

Credit related expense (see page 17)

359

309

439

522

50

FDIC credit related expenses (see page 17)

---

997

(46)

625

(567)

Merger and acquisition related expenses

11,172

524

169

---

---

Termination of FDIC loss share agreements

17,560

---

---

---

---

Impairment/sales bank property held for sale, net

456

94

12

(16)

641

Lease termination recovery

---

---

---

---

(597)

All other expenses

5,099

4,948

4,794

5,056

4,887

Total non interest expenses

62,853

32,086

30,855

32,538

30,603

 

 

 

 

 

 

(Loss) income before provision for income taxes

(7,327)

16,316

15,603

15,534

14,456

Provision for income taxes

(2,523)

5,920

5,687

5,656

5,308

Net (loss) income

$(4,804)

$10,396

$9,916

$9,878

$9,148

 

 

 

 

 

 

(Loss)/earnings per share -diluted

$(0.10)

$0.23

$0.22

$0.21

$0.20

 

Note:  Certain prior period amounts have been reclassified to conform to the current period presentation format.

 

 

 

 

 

 

 

 

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:

3/31/16

12/31/15

9/30/15

6/30/15

3/31/15

Correspondent banking and capital markets division (1)

$ 7,371

$ 5,254

$ 4,943

$ 7,334

$ 5,694

Other correspondent banking related revenue (2)

1,404

987

992

1,253

1,106

Wealth management related revenue

735

913

940

990

970

Service charges on deposit accounts

2,736

2,576

2,488

2,420

2,261

Debit, prepaid, ATM and merchant card related fees

2,046

1,730

1,659

1,823

1,701

BOLI income

565

574

580

599

593

Other service charges and fees

466

419

641

444

439

Gain on sale of securities available for sale

---

---

4

---

---

Subtotal

$15,323

$12,453

$12,247

$14,863

$12,764

Gain on early extinguishment of debt

308

---

---

---

---

FDIC indemnification asset – amortization (see explanation below)

(1,166)

(3,420)

(4,144)

(4,649)

(4,350)

FDIC indemnification income

96

633

27

359

667

Total non-interest income

$14,561

$9,666

$8,130

$10,573

$9,081

 

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:

3/31/16

12/31/15

9/30/15

6/30/15

3/31/15

Employee salaries and wages

$16,137

$14,344

$14,200

$15,130

$14,535

Employee incentive/bonus compensation accrued

1,259

1,854

1,719

1,749

1,200

Employee equity based compensation expense

1,080

866

775

812

830

Deferred compensation expense

160

148

157

153

161

Health insurance and other employee benefits

1,260

983

1,240

1,312

1,330

Payroll taxes

1,423

734

825

893

1,403

401K employer contributions

477

358

416

408

435

Other employee related expenses

291

314

328

237

238

Incremental direct cost of loan origination

(632)

(624)

(744)

(769)

(552)

Total salaries, wages and employee benefits

21,455

18,977

18,916

19,925

19,580

 

 

 

 

 

 

(Gain) loss on sale of OREO

(158)

39

31

74

(547)

Loss (gain) on sale of FDIC covered OREO

---

491

(313)

(47)

(981)

Valuation write down of OREO

22

22

65

109

61

Valuation write down of FDIC covered OREO

---

169

172

281

328

Loss (gain) on repossessed assets other than real estate

6

(7)

15

---

(1)

Foreclosure and repossession related expenses

489

255

328

339

503

Foreclosure and repo expense, FDIC

---

337

95

391

86

Total credit related expenses

359

1,306

393

1,147

(551)

 

 

 

 

 

 

Occupancy expense

2,147

1,986

2,203

2,131

2,080

Depreciation of premises and equipment

1,497

1,442

1,438

1,403

1,433

Supplies, stationary and printing

299

338

382

351

365

Marketing expenses

690

668

630

481

538

Data processing expenses

1,527

1,443

1,536

1,562

1,695

Legal, auditing and other professional fees

903

750

779

690

735

Bank regulatory related expenses

810

606

774

883

910

Postage and delivery

355

337

348

336

368

ATM and debit card related expenses

596

495

515

450

433

Amortization of intangibles

678

616

615

640

666

Internet and telephone banking

564

538

545

550

534

Correspondent account and Federal Reserve charges

176

155

163

169

168

Conferences, seminars, education and training

133

142

110

151

117

Director fees

209

176

164

173

179

Travel expenses

79

117

148

97

84

Other expenses

1,188

1,376

1,015

1,415

1,225

Subtotal                    

33,665

31,468

30,674

32,554

30,559

Impairment/sales bank property held for sale

456

94

12

(16)

641

Lease termination recovery

---

---

---

---

(597)

Merger and acquisition related expenses

11,172

524

169

---

---

Termination of FDIC loss share agreements

17,560

---

---

---

---

Total non- interest expense

$62,853

$32,086

$30,855

$32,538

$30,603

 

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, as well as total stockholders’ equity and tangible common equity. It also reconciles net income and net operating income.  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.  All amounts are in thousands except per share data (unaudited):

 

1Q16

4Q15

1Q15

 

 

Interest income, as reported (GAAP)

$43,498

$41,098

$39,485

 

 

tax equivalent adjustments

685

618

424

 

 

Interest income (tax equivalent)

$44,183

$41,716

$39,909

 

 

 

 

 

 

 

 

Net interest income, as reported (GAAP)

$41,475

$39,279

$37,620

 

 

tax equivalent adjustments

685

618

424

 

 

Net interest income (tax equivalent)

$42,160

$39,897

$38,044

 

 

 

 

 

 

 

 

 

3/31/16

12/31/15

9/30/15

6/30/15

3/31/15

Total stockholders' equity (GAAP)

$519,461

$490,514

$479,812

$468,436

$463,065

Goodwill

(105,492)

(76,739)

(76,739)

(76,739)

(76,739)

Core deposit intangible

(17,803)

(12,164)

(12,744)

(13,186)

(13,789)

Trust intangible

(802)

(837)

(873)

(909)

(946)

Tangible common equity

$395,364

$400,774

$389,456

$377,602

$371,591

 

 

1Q16

4Q15

3Q15

2Q15

1Q15

Net (loss) income (GAAP)

$(4,804)

$10,396

$9,916

$9,878

$9,148

Exclude gain on sale of AFS securities

---

---

(4)

---

---

Exclude gain on early extinguishment

 

 

 

 

 

     of debt

(308)

---

---

---

---

Add back merger and acquisition

 

 

 

 

 

     related expenses

11,172

524

169

---

---

Add expenses related to termination of

 

 

 

 

 

     FDIC loss share agreements

17,560

---

---

---

---

Add back impairment/sales relating to

 

 

 

 

 

     bank property held for sale, net

456

94

12

(16)

641

Subtract lease termination recovery

---

---

---

---

(597)

Tax effected using the effective tax

 

 

 

 

 

     rate for the period presented

(9,943)

(224)

(65)

6

(16)

Net operating income

$14,133

$10,790

$10,028

$9,868

$9,176

Average diluted shares outstanding

 

 

 

 

 

     during the period presented

46,343

45,935

45,826

45,737

45,658

Net operating income per share

$0.30

$0.23

$0.22

$0.22

$0.20

 

17

 

 

 

 

About CenterState Banks, Inc.

 

The Company, headquartered in Davenport, 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 72 branch banking offices located in 22 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 approximately 600 community banks nationwide.

 

For additional information contact Ernest S. Pinner (Chairman), John C. Corbett (CEO), James J. Antal (CFO) or Stephen D. Young (Treasurer) 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, 2015, and otherwise in our SEC reports and filings.

 

18