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Centerstate Banks of Florida Inc. Reports Operating Results (10-K)

March 16, 2011 | About:
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10qk

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Centerstate Banks of Florida Inc. (CSFL) filed Annual Report for the period ended 2010-12-31.

Centerstate Banks Inc. has a market cap of $208.8 million; its shares were traded at around $6.96 with and P/S ratio of 2. The dividend yield of Centerstate Banks Inc. stocks is 0.6%.

Highlight of Business Operations:

The aggregate market value of the Common Stock of the issuer held by non-affiliates of the issuer (20,948,695 shares) on June 30, 2010, was approximately $211,372,000. The aggregate market value was computed by reference the last sale of the Common Stock of the issuer at $10.09 per share on June 30, 2010. For the purposes of this response, directors, executive officers and holders of 5% or more of the issuers Common Stock are considered the affiliates of the issuer at that date.

In January 2011, we acquired four branch banking offices with approximately $113 million of deposits and approximately $121 million of performing loans from TD Bank, N.A.

At December 31, 2010, our primary assets were our ownership of 100% of the stock of our subsidiary banks. At December 31, 2010, we had total consolidated assets of $2,063,319,000, total consolidated deposits of $1,685,594,000, and total consolidated stockholders equity of $252,644,000.

We offer a range of lending services, including real estate, consumer and commercial loans, to individuals and small businesses and other organizations that are located in or conduct a substantial portion of their business in our market area. Our consolidated loans at December 31, 2010 and 2009 were $1,129,946,000, or 55% and $959,021,000 or 55%, respectively, of total consolidated assets. The interest rates charged on loans vary with the degree of risk, maturity, and amount of the loan, and are further subject to competitive pressures, money market rates, availability of funds, and government regulations. We have no foreign loans or loans for highly leveraged transactions.

Our investment securities portfolio available for sale was $500,927,000 and $463,186,000 at December 31, 2010 and 2009, respectively, representing 24% and 26% of our total consolidated assets. At December 31, 2010 approximately 71% of this portfolio was invested in U.S. government mortgage backed securities (MBS), specifically residential FNMA, FHLMC, and GNMA MBSs. We do not own any private label MBS. Approximately 22% or $113,416,000 of this portfolio is invested in obligations of U.S. government agencies and government sponsored enterprises, and the remaining 7%, or $33,253,000 is invested in municipal securities. Our investments are managed in relation to loan demand and deposit growth, and are generally used to provide for the investment of excess funds at acceptable risks levels while providing liquidity to fund increases in loan demand or to offset fluctuations in deposits. Investment securities available for sale are recorded on our balance sheet at market value at each balance sheet date. Any change in market value is recorded directly in our stockholders equity account and is not recognized in our income statement unless the security is sold or unless it is impaired and the impairment is other than temporary. During 2010, we sold approximately $235,273,000 of these securities and recognized in our income statement a net gain on the sales of approximately $7,034,000.

We also have a trading securities portfolio managed at our lead subsidiary bank. For this portfolio, realized and unrealized gains and losses are included in trading securities revenue, a component of non interest income in our Consolidated Statement of Operations. Securities purchased for this portfolio have primarily been municipal securities and are held for short periods of time. During 2010 we purchased approximately $304,750,000 of securities for this portfolio and sold $303,147,000 recognizing a net gain on sale of approximately $597,000. At December 31, 2010, we owned approximately $2,225,000 of securities in our trading portfolio, which includes unrealized gains of approximately $25,000.

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