CEO Ernie Pinner on Q1 2015 Results

CenterState Bank - Ernie Pinner

CenterState Banks’ (CSFL) CEO Ernie Pinner on Q1 2015 Results – Earnings Call Transcript

Operator

Good day, ladies and gentlemen. And welcome to the CenterState Banks Inc. Conference Call. [Operator Instructions]

As a reminder, today’s conference is being recorded. I would now like to turn the conference over to Mr. Ernie Pinner, Chairman and CEO. Sir, please go ahead.

Ernie Pinner – Chairman and CEO

Thank you, ma’am. Good morning, everybody. Thank you for your interest as well as dedicating some time to the call. In the room with me is John Corbett, who is President of the Bank and EVP of the Company; Steve Young, who is the Chief Operating Officer of the Bank and Treasurer of the Company, Jim Antal, who is the CFO of the company; Jennifer Idell, who is CFO of the Bank. Once again thanks for being on the call.

It’s been a good quarter but it can really – it can get around the fact that the Florida economy is been very favorable to us over the last two or three quarters and especially this quarter as we have experienced not only good growth but solid earnings.

As I think as a lifelong resident of Florida and a banker for a number of years and I have been in and out of the markets over the last 15 months quite a lot. I personally see the economy much stronger than even some of the numbers that I’ll review is based on the history of things I look and study.

Yesterday, Mr. Corbett and I had a meeting with all of our Regional President’s and as well as Community President’s and everyone of them took time – we went around and asked them how it was going on in their markets so in all their markets, and from all of our President’s we heard very positive things with regard to the market and with the promise that it look like it would be even better.

Just when you think about from the standpoint from a state level then the state gives us lots of information but the 2013, 2014 year that’s closing out with regard to the state numbers and state presentations, almost all of the key factors and metrics that they study from an economic viewpoint with regard to the state has been returning to or surpassing peak levels in the past.

Our personal income number is almost 5% over what it was a year ago. I think the national average is about 3.9% and we were 4.6% that makes 11th of all the states and the union. Unemployment rates down to 5.6%, it was as high as over 11 in 2010. All of the tourism metrics were up and breaking records, the population growth is definitely back on track I think we are now about 800 people a day. The high ever was 1000.

The real estate sales is still the engine that drives the overall economy here in Florida. And the number that you heard me talk a lot about was the existing home sales. It picked in 2005, this past quarter it was 105% of the high in 2005. So that number is strong and growing recognizing that’s existing home sales, not new sales. The median price is now about 175,000 and the average price is approaching 270,000.

Point of sales were up 10% from a year ago, the supply inventory and the states down to about 5.2 months and it takes about 58 days if you list your property before its sold.

Two things that have a little negative on them is overall construction is still not what it has been in past. Foreclosures are still big deal at Florida not near as big as it was at one time for number of quarters we were number one in the nation, we are down now to number 3.

Past dues, mortgages in the state per years, for long time we have been number one, we are now in 7th place. One interesting number I saw was it in the peak of the recession under Florida homes with mortgages, 50% of them were underwater with regard to value and mortgage balance. That number is down now to 15% and continuing to shrink.

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