Loan growth, Charter deal provide boost to CenterState's profit
CenterState Bank in Winter Haven, Fla., reported higher quarterly profit that reflected an acquisition and strong loan growth.
The $12.3 billion-asset company said in a press release Tuesday that it earned $51.9 million in the fourth quarter. CenterState earned $1.9 million a year earlier after recording an $18.6 million writedown of its deferred-tax asset following the passage of tax reform legislation.
CenterState's September purchase of Charter Financial impacted many year-over-year comparisons.
Net interest income increased by 82%, to $115.7 million. Fourth-quarter loan production rose by 83%, to $594 million, and the net interest margin widened by 22 basis points, to 4.35%.
While the loan-loss provision more than doubled, to $2.1 million, nonperforming assets, as a percentage of total assets, fell to 0.22% from 0.3% a year earlier.
Noninterest income rose by 91%, to $32.4 million, reflecting increased revenue from correspondent banking revenue and mortgages.
Noninterest expense increased by 62%, to $79.5 million, including higher salary and occupancy expenses.
The company said that cost savings from the Charter acquisition are expected to be fully realized by the end of the first quarter.