8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 28, 2011

SEACOAST BANKING CORPORATION OF FLORIDA

(Exact name of registrant as specified in its charter)

Florida	1-13660	59-2260678
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

815 Colorado Avenue, Stuart, FL	34994
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (772) 287-4000

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

SEACOAST BANKING CORPORATION OF FLORIDA

Item 2.02 Results of Operations and Financial Condition

On July 28, 2011, the Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”) announced its financial results for the second quarter ended June 30, 2011.

A copy of the press release announcing Seacoast’s results for the second quarter ended June 30, 2011 is attached hereto as Exhibit 99.1 and incorporated herein by reference.

Item 7.01 Regulation FD Disclosure

On July 29, 2011, Seacoast held an investor conference call to discuss its financial results for the second quarter ended June 30, 2011. A transcript of this conference call is attached hereto as Exhibit 99.2 and incorporated herein by reference. Also attached as Exhibit 99.3 are charts (available on the Company’s website at www.seacoastbanking.net) containing information used in the conference call and incorporated herein by reference. All information included in the transcript and the charts is presented as of June 30, 2011, and the Company does not assume any obligation to correct or update said information in the future.

The information in Items 2.02 and 7.01, as well as Exhibits 99.1, 99.2 and 99.3, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit
No.		Description
	99.1	Press Release dated July 28, 2011 with respect to Seacoast Banking Corporation of Florida’s financial results for the second quarter ended June 30, 2011
	99.2	Transcript of Seacoast’s investor conference call held on July 29, 2011 to discuss the Company’s financial results for the second quarter ended June 30, 2011
	99.3	Data on website containing information used in the conference call held on July 29, 2011

Exhibits 99.1, 99.2 and 99.3 referenced herein contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, ability to realized deferred tax assets, cost savings, enhanced revenues, economic and seasonal conditions in our markets, and improvements to reported earnings that may be realized from cost controls and for integration of banks that we have acquired, as well as statements with respect to Seacoast’s objectives, expectations and intentions and other statements that are not historical facts. Actual results may differ from those set forth in the forward-looking statements.

Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, and 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 Seacoast 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.

You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “support”, “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “further”, “point to,” “project,” “could,” “intend” or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the effects of future economic and market conditions, including seasonality; governmental monetary and fiscal policies, as well as legislative, tax and regulatory changes; changes in accounting policies, rules and practices; the risks of changes in interest rates on the level and composition of deposits, loan demand, liquidity and the values of loan collateral, securities, and interest sensitive assets and liabilities; interest rate risks, sensitivities and the shape of the yield curve; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market areas and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the Internet; and the failure of assumptions underlying the establishment of reserves for possible loan losses. The risks of mergers and acquisitions, include, without limitation: unexpected transaction costs, including the costs of integrating operations; the risks that the businesses will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; the potential failure to fully or timely realize expected revenues and revenue synergies, including as the result of revenues following the merger being lower than expected; the risk of deposit and customer attrition; any changes in deposit mix; unexpected operating and other costs, which may differ or change from expectations; the risks of customer and employee loss and business disruption, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures and solicitations of customers by competitors; as well as the difficulties and risks inherent with entering new markets.

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, 2010 under “Special Cautionary Notice Regarding Forward-Looking Statements” and “Risk Factors”, and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC’s Internet website at http://www.sec.gov.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SEACOAST BANKING CORPORATION OF FLORIDA (Registrant)
Date: August 2, 2011	By:	/s/ William R. Hahl
		William R. Hahl
		Executive Vice President and Chief Financial Officer

EX-99.1

EXHIBIT 99.1

To Form 8-K dated July 28, 2011

NEWS RELEASE

SEACOAST BANKING CORPORATION OF FLORIDA

Dennis S. Hudson, III
Chairman and Chief Executive Officer
Seacoast Banking Corporation of Florida
(772) 288-6085

William R. Hahl
Executive Vice President &
Chief Financial Officer
(772) 221-2825

SEACOAST REPORTS IMPROVED EARNINGS AND CREDIT QUALITY FOR

SECOND QUARTER 2011

• Earnings increase for second consecutive quarter

• Nonperforming loans declined by 49.2% over the last twelve months, 30.3% for the quarter

• Average low cost deposits (NOW & savings) increased 17.4% annualized during the quarter

• Average demand deposits increased 23.8% annualized during the quarter and were up 18.2% over the prior year

STUART, FL., July 28, 2011 — Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCF), today reported a second quarter 2011 net income of $1.1 million, compared to a net loss of $13.8 million for the second quarter of 2010. For the first six months of 2011 net income totaled $1.5 million compared to a net loss of $15.4 million a year ago. Including preferred stock dividends and accretion of $937,000, the net income applicable to common shareholders was $176,000 or $0.00 per average common diluted share for the second quarter, compared to a net loss of $14.7 million or $0.25 per average common diluted share for the second quarter of 2010.

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Nonperforming loans fell for the seventh consecutive quarter to 3.88 percent of loans outstanding compared with a peak level of 10.23 percent at September 30, 2009 as new problem credit inflows continued to moderate and liquidation activities were accelerated. As previously forecast the Company closed on contracts liquidating $27.5 million of nonperforming loans and $3.5 million of OREO properties during the quarter. Nonperforming assets fell to 3.46 percent of total assets from 5.25 percent a year ago and totaled $72.0 million at June 30, 2011, a dollar level last achieved in December 2007. Nonperforming loans are expected to continue to decline in the second half of 2011.

“Our results in the second quarter were consistent with our expectations for continued earnings improvement during the year”, said Dennis S. Hudson, III, Chairman and Chief Executive Officer. “Revenues continued to grow and included a strong 8.0 percent linked quarter increase in noninterest income as we continued to successfully execute our core growth strategy. Our focus on building new core checking account relationships continued to gain momentum with average noninterest bearing checking balances growing 18.2 percent over the prior year and 23.8 percent (annualized) on a linked quarter basis. Average repurchase agreement funding for the quarter grew by 21.1 percent compared with the prior year reflecting our success in building larger core business and local governmental relationships.”

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Additional highlights include:

• Mortgage banking revenue in the second quarter 2011 was up $45,000 or 9.7 percent compared to second quarter 2010 due to higher volume and spreads;

• Marine finance revenue totaled $349,000 for the quarter, 12.6 percent higher than a year ago;

• Service charges on deposit accounts totaled $1.546 million for the quarter, an increase of 6.5 percent over the same quarter last year;

• Interchange income totaled $995,000 for the quarter, an increase of $173,000 or 21.0 percent compared to second quarter 2010;

• Total noninterest bearing deposits at June 30, 2011 comprised 19.1 percent of total deposits up from 16.1 percent a year ago;

• Checking account household growth was 4.9 percent annualized for the first six months of 2011;

• Regulatory capital ratios improved during the quarter with the total risk based capital ratio increasing to 18.9 percent (estimated) at June 30, 2011, compared with 18.2 percent in the prior quarter; and

• Tangible common equity (TCE) ratio improved to 5.84 percent from 5.60 percent in the prior quarter; a future recapture of the deferred tax asset valuation allowance would add (proforma) approximately 200 basis points to the TCE ratio.

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Net interest income for the quarter totaled $16.5 million, unchanged from the first quarter, and up $324,000 or 2% compared with second quarter 2010. The increase over the prior year’s second quarter net interest income is a result of lower deposit costs and lower rates paid on interest bearing liabilities, and a slightly larger investment portfolio. The net interest margin for the second quarter totaled 3.36 percent, down 12 basis points compared to the first quarter 2011, and 9 basis points higher than the second quarter 2010. In the first quarter of 2011, collection of interest on nonaccrual loans increased, while in the second quarter there was a higher level of interest income reversed related to nonaccrual loans. A stable margin is expected going forward, as a result of lower levels of nonperforming loans. For the first six months of 2011 the margin was 3.42 percent, up six basis points compared with the prior year’s first six months.

The Company recorded a provision for loan losses in the second quarter 2011 of $0.90 million compared to $0.64 million for the first quarter and $16.8 million for the second quarter of 2010. The allowance for loan losses as a percentage of loans was 2.63 percent at June 30, 2011, compared to 2.80 percent for the first quarter this year and 3.10 percent at June 30, 2010. The reduction in the allowance for the quarter is consistent with lower overall risk in the loan portfolio as both the concentration and loan size have been reduced, particularly in the construction and land development portfolios where the majority of prior loan losses occurred. Current quarter net loan charge-offs totaled $4.0 million compared to $20.2 million for the second quarter 2010 and $4.0 million for the first quarter 2011.

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Second quarter 2011 noninterest income was up $338,000 compared to the first quarter and was up $295,000 compared to the second quarter of 2010. Mortgage banking fees were up $114,000 compared to the first quarter of 2011 with revenues of $509,000, up $45,000 compared with second quarter 2010. Service charges on deposits and interchange income were both up when compared to the first quarter 2011 and last year’s second quarter as a result of the increases in new business and retail households. Combined these deposit account related revenues totaled $2.5 million in the second quarter, up $267,000 or 11.7 percent compared with second quarter 2010.

	Q-2		Q-1		Q-4		Q-3		Q-2
(dollars in thousands)	2011		2011		2010		2010		2010
Noninterest Income:
Service charges on deposit accounts	$	1,546	$	1,442	$	1,590	$	1,511	$	1,452
Trust income		517		523		510		500		491
Mortgage banking fees		509		395		580		654		464
Brokerage commissions and fees		223		320		325		306		257
Marine finance fees		349		298		355		330		310
Interchange income		995		891		814		810		822
Other deposit based EFT fees		79		90		75		71		82
Other		329		250		338		350		374
Total		4,547		4,209		4,587		4,532		4,252
Gain on sale of merchant business		0		0		600		0		0
Total	$	4,547	$	4,209	$	5,187	$	4,532	$	4,252

Core operating expenses declined by $642,000 for the quarter and were lower by $966,000 over the prior year. Expenses associated with other real estate owned and asset dispositions were stable compared to the reduced level of the first quarter, but higher by $1.2 million compared with the prior year second quarter. Salaries, wages and benefits for the second quarter 2011 declined $224,000 or 2.7 percent from a year ago, and were $313,000 lower for the first six months compared to the same period in 2010. FDIC assessments were lower by $271,000 for the second quarter compared with first quarter and were down by $351,000 compared to last year’s assessments implemented during the quarter.

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	Q-2		Q-1		Q-4		Q-3		Q-2
(dollars in thousands)	2011		2011		2010		2010		2010
Noninterest Expense:
Salaries and wages	$	6,534	$	6,551	$	6,539	$	6,631	$	6,776
Employee benefits		1,437		1,600		1,153		1,367		1,419
Outsourced data processing costs		1,699		1,522		1,496		1,503		1,503
Telephone / data lines		319		289		321		383		402
Occupancy expense		1,919		1,946		1,699		1,928		1,911
Furniture and equipment expense		618		593		609		595		585
Marketing expense		667		752		764		577		913
Legal and professional fees		1,585		1,757		1,783		2,491		1,602
FDIC assessments		688		959		947		966		1,039
Amortization of intangibles		212		212		212		212		246
Other		1,812		1,951		2,330		1,886		2,060
Total Core Operating Expense		17,490		18,132		17,853		18,539		18,456
Net loss on OREO and repossessed assets		441		449		8,763		849		105
Asset dispositions expense		1,142		1,086		1,122		587		310
Total	$	19,073	$	19,667	$	27,738	$	19,975	$	18,871

The Company’s residential lending group has produced solid, quality mortgage loan growth in 2011. A total of 272 applications were accepted in the second quarter 2011 for total loans of $59.7 million, and 630 applications were taken in the first six months for $139.5 million. Closed mortgage loans totaled $50 million for the quarter, up $18 million compared with the first quarter 2011. A total of $19 million in residential mortgage loans were sold in the second quarter of 2011. Over the first six months of 2011, a total of $32 million in residential mortgage loans were sold, and $50 million were added to the portfolio.

The Company’s retail and business core deposit focus has produced strong growth in core deposit customer relationships and has resulted in increased balances and improved deposit mix. The improved deposit mix and lower rates paid on interest bearing deposits during the second quarter reduced the overall cost of total deposits to 0.70 percent, 2 basis points lower than in the first quarter 2011 and 24 basis points lower than the second quarter 2010.

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Average total deposits for the second quarter ended June 30, 2011 were up $41 million or 9.9 percent annualized compared to March 31, 2011, and ending deposits were nearly unchanged compared to first quarter at $1.681 million. Compared to the prior year, average total deposits were lower by $34 million due to a planned deposit runoff of customers with single-service certificates of deposit and brokered certificates as they matured. The mix of deposits improved with low cost average interest bearing NOW and savings deposits increasing $25 million or 12.6 percent annualized, and average demand deposits increasing $19 million or 23.8 percent annualized compared to the first quarter 2011. Average demand deposits increased $50.9 million or 18.2 percent compared with second quarter a year ago. The average cost of interest bearing core deposits (NOW, savings and MMDA) during the second quarter was 0.31 percent, down 25 basis points from the second quarter of 2010. Interest rates paid on certificate of deposit rates were also lower compared to the second quarter last year and totaled 1.74 percent during the second quarter 2011, a decline of 25 basis points. The average cost of total interest bearing liabilities was 0.95 percent, down 3 basis points compared to the first quarter 2011 and 22 basis points lower than the second quarter of 2010.

As previously reported, the Company has experienced strong growth in core deposit customer relationships since implementing its core growth strategy. A total of 7,645 new households started banking with Seacoast over the past year, up 23.8 percent over the same period one year earlier. These new households have opened 8,035 new checking accounts, an increase of 35.3 percent over the number of new accounts opened during the prior twelve months. These new relationships have also increased average services and average balances per household.

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Seacoast will host a conference call on Friday, July 29, 2011 at 9:00 a.m. (Eastern Time) to discuss the earnings results and business trends. Investors may call in (toll-free) by dialing (888) 517-2464 (passcode: 5785075; host: Dennis S. Hudson). Charts will be used during the conference call and may be accessed at Seacoast’s website at www.seacoastbanking.net by selecting “Presentations” under the heading “Investor Services”. A replay of the call will be available for one month, beginning the afternoon of July 29, by dialing (888) 843-7419 (domestic), using the passcode 5785075.

Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast’s website at www.seacoastbanking.net. The link is located in the subsection “Presentations” under the heading “Investor Services”. Beginning the afternoon of July 29, 2011, an archived version of the webcast can be accessed from this same subsection of the website. The archived webcast will be available for one year.

Seacoast, with approximately $2.1 billion in assets, is one of the largest independent commercial banking organizations in Florida. Seacoast has 39 offices in South and Central Florida and is headquartered on Florida’s Treasure Coast, which is one of the wealthiest areas in the nation.

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Cautionary Notice Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, ability to realized deferred tax assets, cost savings, enhanced revenues, economic and seasonal conditions in our markets, and improvements to reported earnings that may be realized from cost controls and for integration of banks that we have acquired, as well as statements with respect to Seacoast’s objectives, expectations and intentions and other statements that are not historical facts. Actual results may differ from those set forth in the forward-looking statements.

Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, and 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 Seacoast 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.

You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “support”, “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “further”, “point to,” “project,” “could,” “intend” or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the effects of future economic and market conditions, including seasonality; governmental monetary and fiscal policies, as well as legislative, tax and regulatory changes; changes in accounting policies, rules and practices; the risks of changes in interest rates on the level and composition of deposits, loan demand, liquidity and the values of loan collateral, securities, and interest sensitive assets and liabilities; interest rate risks, sensitivities and the shape of the yield curve; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market areas and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the Internet; and the failure of assumptions underlying the establishment of reserves for possible loan losses. The risks of mergers and acquisitions, include, without limitation: unexpected transaction costs, including the costs of integrating operations; the risks that the businesses will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; the potential failure to fully or timely realize expected revenues and revenue synergies, including as the result of revenues following the merger being lower than expected; the risk of deposit and customer attrition; any changes in deposit mix; unexpected operating and other costs, which may differ or change from expectations; the risks of customer and employee loss and business disruption, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures and solicitations of customers by competitors; as well as the difficulties and risks inherent with entering new markets.

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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, 2010 under “Special Cautionary Notice Regarding Forward-Looking Statements” and “Risk Factors”, and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC’s Internet website at http://www.sec.gov.

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FINANCIAL HIGHLIGHTS (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	Three Months Ended						Six Months Ended
(Dollars in thousands,	June 30,						June 30,
except share data)	2011			2010			2011			2010
Summary of Earnings
Net income (loss)	$	1,113		$	(13,796	)	$	1,471		$	(15,360	)
Net income (loss) available to common shareholders		176			(14,733	)		(403	)		(17,234	)
Net interest income (1)		16,596			16,286			33,114			33,575
Performance Ratios
Return on average assets-GAAP basis (2), (3)		0.21	%		(2.61	)%		0.14	%		(1.46	)%
Return on average tangible assets (2), (3), (4)		0.24			(2.58	)		0.17			(1.43	)
Return on average shareholders’ equity-GAAP basis (2), (3)		2.68			(30.73	)		1.79			(18.66	)
Net interest margin (1), (2)		3.36			3.27			3.42			3.36
Per Share Data
Net income (loss) diluted-GAAP basis	$	0.00		$	(0.25	)	$	0.00		$	(0.29	)
Net income (loss) basic-GAAP basis		0.00			(0.25	)		0.00			(0.29	)
Cash dividends declared		0.00			0.00			0.00			0.00

	June 30,						Increase/
	2011			2010			(Decrease)
Credit Analysis
Net charge-offs year-to-date	$	8,055		$	23,750			(66.1	)%
Net charge-offs to average loans		1.32	%		3.48	%		(62.1	)
Loan loss provision year-to-date	$	1,542		$	18,839			(91.8	)
Allowance to loans at end of period		2.63	%		3.10	%		(15.2	)
Nonperforming loans	$	46,165		$	90,885			(49.2	)
OREO		25,877			19,018			36.1
Total non-performing assets	$	72,042		$	109,903			(34.4	)
Restructured loans (accruing)	$	60,238		$	64,876			(7.1	)
Nonperforming assets to loans and other real estate owned at end of period		5.93	%		8.33	%		(28.8	)
Nonperforming assets to total assets		3.46	%		5.25	%		(34.1	)
Selected Financial Data
Total assets	$	2,082,863		$	2,092,812			(0.5	)
Securities available for sale (at fair value)		611,231			384,449			59.0
Securities held for investment (at amortized cost)		25,159			9,332			169.6
Net loans		1,157,714			1,260,319			(8.1	)
Deposits		1,681,461			1,715,894			(2.0	)
Total shareholders’ equity		171,148			186,990			(8.5	)
Common shareholders’ equity		124,276			141,367			(12.1	)
Book value per share common		1.33			1.51			(11.9	)
Tangible book value per share		1.80			1.96			(8.2	)
Tangible common book value per share (5)		1.30			1.47			(11.6	)
Average shareholders’ equity to average assets		8.06	%		7.82	%		3.1
Tangible common equity to tangible assets (5), (6)		5.84			6.60			(11.5	)
Average Balances (Year-to-Date)
Total assets	$	2,057,099		$	2,123,713			(3.1	)
Less: intangible assets		2,921			3,818			(23.5	)
Total average tangible assets	$	2,054,178		$	2,119,895			(3.1	)
Total equity	$	165,748		$	165,990			(0.1	)
Less: intangible assets		2,921			3,818			(23.5	)
Total average tangible equity	$	162,827		$	162,172			0.4

(1)	Calculated on a fully taxable equivalent basis using amortized cost.
(2)	These ratios are stated on an annualized basis and are not necessarily indicative of future periods.
(3)	The calculation of ROA and ROE do not include the mark-to-market unrealized gains (losses) because the unrealized gains (losses) are not included in net income (loss).
(4)	The Company believes that return on average assets and equity excluding the impacts of noncash amortization expense on intangible assets is a better measurement of the Company’s trend in earnings growth.
(5)	The Company defines tangible common equity as total shareholders equity less preferred stock and intangible assets.
(6)	The ratio of tangible common equity to tangible assets is a non-GAAP ratio used by the investment community to measure capital adequacy.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(Dollars in thousands, except per share data)	2011		2010			2011			2010
Interest on securities:
Taxable	$	4,575	$	3,326		$	8,251		$	7,053
Nontaxable		38		57			85			126
Interest and fees on loans		15,476		17,393			31,689			35,770
Interest on federal funds sold and other investments		198		272			431			511
Total Interest Income		20,287		21,048			40,456			43,460
Interest on deposits		643		1,237			1,235			2,478
Interest on time certificates		2,307		2,847			4,655			6,073
Interest on borrowed money		796		747			1,569			1,479
Total Interest Expense		3,746		4,831			7,459			10,030
Net Interest Income		16,541		16,217			32,997			33,430
Provision for loan losses		902		16,771			1,542			18,839
Net Interest Income After Provision for Loan Losses		15,639		(554	)		31,455			14,591
Noninterest income:
Service charges on deposit accounts		1,546		1,452			2,988			2,824
Trust income		517		491			1,040			967
Mortgage banking fees		509		464			904			885
Brokerage commissions and fees		223		257			543			543
Marine finance fees		349		310			647			649
Debit card income		995		822			1,886			1,539
Other deposit based EFT fees		79		82			169			175
Other		329		374			579			833
		4,547		4,252			8,756			8,415
Securities gains, net		0		1,377			0			3,477
Total Noninterest Income		4,547		5,629			8,756			11,892
Noninterest expenses:
Salaries and wages		6,534		6,776			13,085			13,238
Employee benefits		1,437		1,419			3,037			3,197
Outsourced data processing costs		1,699		1,503			3,221			2,982
Telephone / data lines		319		402			608			801
Occupancy		1,919		1,911			3,865			3,853
Furniture and equipment		618		585			1,211			1,194
Marketing		667		913			1,419			1,569
Legal and professional fees		1,585		1,602			3,342			3,703
FDIC assessments		688		1,039			1,647			2,045
Amortization of intangibles		212		246			424			561
Asset dispositions expense		441		310			1,527			559
Net loss on other real estate owned and repossessed assets		1,142		105			1,591			3,929
Other		1,812		2,060			3,763			4,212
Total Noninterest Expenses		19,073		18,871			38,740			41,843
Income (Loss) Before Income Taxes		1,113		(13,796	)		1,471			(15,360	)
Provision for income taxes		0		0			0			0
Net Income (Loss)		1,113		(13,796	)		1,471			(15,360	)
Preferred stock dividends and accretion on preferred stock discount		937		937			1,874			1,874
Net Income (Loss) Available to Common Shareholders	$	176	$	(14,733	)	$	(403	)	$	(17,234	)
Per share of common stock:
Net income (loss) diluted	$	0.00	$	(0.25	)	$	0.00		$	(0.29	)
Net income (loss) basic		0.00		(0.25	)		0.00			(0.29	)
Cash dividends declared		0.00		0.00			0.00			0.00
Average diluted shares outstanding		93,492,169		60,020,561			93,475,523			59,436,437
Average basic shares outstanding		93,492,169		60,020,561			93,475,523			59,436,437

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	June 30,			December 31,			June 30,
(Dollars in thousands, except share data)	2011			2010			2010
Assets
Cash and due from banks	$	28,782		$	35,358		$	28,971
Interest bearing deposits with other banks		138,109			176,047			283,314
Total Cash and Cash Equivalents		166,891			211,405			312,285
Securities:
Available for sale (at fair value)		611,231			435,140			384,449
Held for investment (at amortized cost)		25,159			26,861			9,332
Total Securities		636,390			462,001			393,781
Loans available for sale		4,758			12,519			7,372
Loans, net of deferred costs		1,188,945			1,240,608			1,300,600
Less: Allowance for loan losses		(31,231	)		(37,744	)		(40,281	)
Net Loans		1,157,714			1,202,864			1,260,319
Bank premises and equipment, net		34,892			36,045			37,668
Other real estate owned		25,877			25,697			19,018
Other intangible assets		2,713			3,137			3,560
Other assets		53,628			62,713			58,809
	$	2,082,863		$	2,016,381		$	2,092,812
Liabilities and Shareholders’ Equity
Liabilities
Deposits
Demand deposits (noninterest bearing)	$	321,876		$	289,621		$	276,455
Savings deposits		831,371			812,625			877,544
Other time certificates		274,565			281,681			288,310
Brokered time certificates		7,532			7,093			19,788
Time certificates of $100,000 or more		246,117			246,208			253,797
Total Deposits		1,681,461			1,637,228			1,715,894
Federal funds purchased and securities sold under agreements to repurchase, maturing within 30 days		102,827			98,213			75,310
Borrowed funds		50,000			50,000			50,000
Subordinated debt		53,610			53,610			53,610
Other liabilities		23,817			11,031			11,008
		1,911,715			1,850,082			1,905,822
Shareholders’ Equity
Preferred stock — Series A		46,872			46,248			45,623
Preferred stock — Series B		0			0			47,876
Common stock		9,354			9,349			5,895
Additional paid in capital		221,760			221,522			177,552
Accumulated deficit		(111,849	)		(112,652	)		(94,184	)
Treasury stock		(4	)		(1	)		(6	)
		166,133			164,466			182,756
Accumulated other comprehensive gain, net		5,015			1,833			4,234
Total Shareholders’ Equity		171,148			166,299			186,990
	$	2,082,863		$	2,016,381		$	2,092,812
Common Shares Outstanding		93,541,902			93,487,581			58,950,016

Note: The balance sheet at December 31, 2010 has been derived from the audited financial statements at that date.

CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	QUARTERS
	2011						2010						Last 12
(Dollars in thousands, except per share data)	Second			First			Fourth			Third			Months
Net income (loss)	$	1,113		$	358		$	(10,205	)	$	(7,638	)	$	(16,372	)
Operating Ratios
Return on average assets-GAAP basis (2),(3)		0.21	%		0.07	%		(2.01	)%		(1.47	)%		(0.80	)%
Return on average tangible assets (2),(3),(4)		0.24			0.10			(1.99	)		(1.44	)		(0.77	)
Return on average shareholders’ equity-GAAP basis (2),(3)		2.68			0.88			(23.31	)		(16.63	)		(9.52	)
Net interest margin (1),(2)		3.36			3.48			3.42			3.35			3.40
Average equity to average assets		7.98			8.14			8.63			8.83			8.39
Credit Analysis
Net charge-offs	$	4,024		$	4,031		$	4,678		$	10,700		$	23,433
Net charge-offs to average loans		1.32	%		1.32	%		1.47	%		3.29	%		1.87	%
Loan loss provision	$	902		$	640		$	3,975		$	8,866		$	14,383
Allowance to loans at end of period		2.63	%		2.80	%		3.04	%		3.04	%
Restructured Loans (accruing)	$	60,238			76,935			66,350			64,403
Nonperforming loans	$	46,165			66,233			68,284			69,519
OREO		25,877			24,111			25,697			32,406
Nonperforming assets	$	72,042		$	90,344		$	93,981		$	101,925
Nonperforming assets to loans and other real estate owned at end of period		5.93	%		7.23	%		7.42	%		7.87	%
Nonperforming assets to total assets		3.46			4.34			4.66			5.06
Nonaccrual loans and accruing loans 90 days or more past due to loans outstanding at end of period		3.88			5.41			5.50			5.50
Per Share Common Stock
Net income (loss) diluted-GAAP basis	$	0.00		$	(0.01	)	$	(0.12	)	$	(0.09	)	$	(0.22	)
Net income (loss) basic-GAAP basis		0.00			(0.01	)		(0.12	)		(0.09	)	$	(0.22	)
Cash dividends declared		—			—			—			—		$	—
Book value per share common		1.33			1.28			1.28			1.43
Average Balances
Total assets	$	2,083,858		$	2,030,045		$	2,013,405		$	2,062,857
Less: Intangible assets		2,816			3,027			3,239			3,452
Total average tangible assets	$	2,081,042		$	2,027,018		$	2,010,166		$	2,059,405
Total equity	$	166,342		$	165,148		$	173,707		$	182,202
Less: Intangible assets		2,816			3,027			3,239			3,452
Total average tangible equity	$	163,526		$	162,121		$	170,468		$	178,750

(1)	Calculated on a fully taxable equivalent basis using amortized cost.
(2)	These ratios are stated on an annualized basis and are not necessarily indicative of future periods.
(3)	The calculation of ROA and ROE do not include the mark-to-market unrealized gains (losses), because the unrealized gains (losses) are not included in net income (loss).
(4)	The Company believes that return on average assets and equity excluding the impacts of noncash amortization expense on intangible assets is a better measurement of the Company’s trend in earnings growth.

	June 30,		December 31,		June 30,
SECURITIES	2011		2010		2010
U.S. Treasury and U.S. Government Agencies	$	4,224	$	4,212	$	5,312
Mortgage-backed		602,882		426,477		374,377
Obligations of states and political subdivisions		1,400		1,709		1,729
Other securities		2,725		2,742		3,031
Securities Available for Sale		611,231		435,140		384,449
Mortgage-backed		16,448		18,963		5,364
Obligations of states and political subdivisions		7,711		7,398		3,968
Other securities		1,000		500		0
Securities Held for Investment		25,159		26,861		9,332
Total Securities	$	636,390	$	462,001	$	393,781

	June 30,		December 31,		June 30,
LOANS	2011		2010		2010
Construction and land development	$	49,193	$	79,306	$	106,825
Real estate mortgage		1,039,997		1,060,597		1,082,518
Installment loans to individuals		51,351		51,602		61,005
Commercial and financial		48,012		48,825		49,949
Other loans		392		278		303
Total Loans	$	1,188,945	$	1,240,608	$	1,300,600

AVERAGE BALANCES, YIELDS AND RATES ⁽¹⁾ (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	2011												2010
	Second Quarter						First Quarter						Second Quarter
	Average			Yield/			Average			Yield/			Average			Yield/
(Dollars in thousands)	Balance			Rate			Balance			Rate			Balance			Rate
Assets
Earning assets:
Securities:
Taxable	$	591,265			3.10	%	$	468,489			3.14	%	$	388,538			3.42	%
Nontaxable		3,518			6.48			3,921			7.45			5,703			6.10
Total Securities		594,783			3.11			472,410			3.17			394,241			3.46
Federal funds sold and other investments		163,847			0.48			216,906			0.44			267,380			0.41
Loans, net		1,221,388			5.09			1,236,274			5.33			1,361,343			5.19
Total Earning Assets		1,980,018			4.12			1,925,590			4.26			2,022,964			4.22
Allowance for loan losses		(33,425	)					(37,254	)					(42,415	)
Cash and due from banks		29,513						30,122						28,559
Premises and equipment		35,368						35,936						38,182
Other assets		72,384						75,651						73,098
	$	2,083,858					$	2,030,045					$	2,120,388
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
NOW	$	48,043			0.26	%	$	47,758			0.25	%	$	52,258			0.36	%
Savings deposits		123,759			0.11			116,896			0.11			105,984			0.23
Money market accounts		663,569			0.35			645,241			0.33			726,018			0.62
Time deposits		530,906			1.74			534,401			1.78			574,658			1.99
Federal funds purchased and other short term borrowings		105,134			0.27			93,279			0.28			86,836			0.28
Other borrowings		103,610			2.81			103,610			2.77			103,610			2.65
Total Interest-Bearing Liabilities		1,575,021			0.95			1,541,185			0.98			1,649,364			1.17
Demand deposits (noninterest-bearing)		330,858						312,310						279,960
Other liabilities		11,637						11,402						10,971
Total Liabilities		1,917,516						1,864,897						1,940,295
Shareholders’ equity		166,342						165,148						180,093
	$	2,083,858					$	2,030,045					$	2,120,388
Interest expense as a % of earning assets					0.76	%					0.78	%					0.96	%
Net interest income as a % of earning assets					3.36						3.48						3.27

(1)	On a fully taxable equivalent basis. All yields and rates have been computed on an annualized basis using amortized cost.
	Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.

QUARTERLY TRENDS — LOANS AT END OF PERIOD (Dollars in Millions) (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

		2009								2010								2011				Nonperforming
Construction and land development		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		2nd Qtr		Number
Residential:
Condominiums	>$4 million	$	8.4	$	7.9	$	5.3	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—		—
	<$4 million		7.9		8.8		3.7		6.1		0.9		0.9		0.9		0.9		0.5		0.04		0.04		1
Town homes	>$4 million		—		—		—		—		—		—		—		—		—		—		—		—
	<$4 million		4.2		2.3		—		—		—		—		—		—		—		—		—		—
Single Family Residences	>$4 million		6.6		6.5		—		—		—		—		—		—		—		—		—		—
	<$4 million		13.9		10.3		7.1		4.1		3.9		3.6		3.8		—		—		—		—		—
Single Family Land & Lots	>$4 million		21.8		21.8		5.9		5.9		5.9		5.9		—		—		—		—		—		—
	<$4 million		29.6		21.5		19.5		16.6		15.7		9.6		10.3		7.0		6.6		6.5		0.04		2
Multifamily	>$4 million		7.8		7.8		6.6		6.6		6.6		4.3		—		—		—		—		—		—
	<$4 million		17.0		9.8		9.5		8.3		8.1		8.2		6.3		6.1		6.1		5.7		1.1		2
TOTAL	>$4 million		44.6		44.0		17.8		12.5		12.5		10.2		—		—		—		—		—		—
TOTAL	<$4 million		72.6		52.7		39.8		35.1		28.6		22.3		21.3		14.0		13.2		12.2		1.2		5
GRAND TOTAL		$	117.2	$	96.7	$	57.6	$	47.6	$	41.1	$	32.5	$	21.3	$	14.0	$	13.2	$	12.2	$	1.2		5

QUARTERLY TRENDS — LOANS AT END OF PERIOD (Dollars in Millions) (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	2009								2010								2011
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr
Construction and land development
Residential
Condominiums	$	16.3	$	16.7	$	9.0	$	6.1	$	0.9	$	0.9	$	0.9	$	0.9	$	0.5	$	—
Townhomes		4.2		2.3		—		—		—		—		—		—		—		—
Single family residences		20.5		16.8		7.1		4.1		3.9		3.6		3.8		—		—		—
Single family land and lots		51.4		43.3		25.4		22.5		21.6		15.5		10.3		7.0		6.6		6.5
Multifamily		24.8		17.6		16.1		14.9		14.7		12.5		6.3		6.1		6.1		5.7
		117.2		96.7		57.6		47.6		41.1		32.5		21.3		14.0		13.2		12.2
Commercial
Office buildings		17.4		13.8		13.8		13.9		13.7		—		—		—		—		—
Retail trade		70.0		55.9		23.0		3.9		3.9		—		—		—		—		—
Land		60.9		51.2		50.8		45.6		45.7		38.5		35.1		33.6		33.9		10.3
Industrial		9.0		8.5		8.2		2.5		2.5		0.3		0.3		—		—		—
Healthcare		5.7		6.0		4.8		4.8		—		—		—		—		—		—
Churches and educational facilities		—		—		—		—		—		—		—		—		—		—
Lodging		0.6		—		—		—		—		—		—		—		—		—
Convenience stores		—		—		—		—		—		—		—		0.2		0.5		0.6
Marina		31.6		30.0		28.1		6.8		6.8		—		—		—		—		—
Other		6.2		1.4		—		—		—		—		—		—		—		—
		201.4		166.8		128.7		77.5		72.6		38.8		35.4		33.8		34.4		10.9
Individuals
Lot loans		34.0		32.4		30.7		29.3		28.9		27.4		26.3		24.4		20.8		19.4
Construction		16.2		11.8		11.1		8.5		8.7		8.2		9.1		7.1		7.3		6.7
		50.2		44.2		41.8		37.8		37.6		35.6		35.4		31.5		28.1		26.1
Total construction and land development		368.8		307.7		228.1		162.9		151.3		106.9		92.1		79.3		75.7		49.2
Real estate mortgages
Residential real estate
Adjustable		333.1		328.0		325.9		289.4		290.5		295.9		300.9		303.3		308.6		314.3
Fixed rate		90.8		90.6		89.5		88.6		87.6		86.0		84.1		82.6		86.6		88.8
Home equity mortgages		85.5		83.8		83.9		86.8		89.1		79.0		74.4		73.4		67.7		63.1
Home equity lines		60.3		60.1		59.7		60.1		60.1		58.8		58.4		57.7		57.4		56.9
		569.7		562.5		559.0		524.9		527.3		519.7		517.8		517.0		520.3		523.1
Commercial real estate
Office buildings		140.6		141.6		144.2		132.3		131.1		128.2		122.9		122.0		121.3		120.0
Retail trade		109.1		120.0		151.4		164.6		163.5		155.9		152.0		151.5		150.6		149.6
Land		—		—		—		—		—		—		—		—		—		—
Industrial		95.3		93.0		89.3		88.4		81.7		84.0		79.8		78.0		76.3		68.5
Healthcare		28.3		30.9		25.4		24.7		29.1		29.4		29.0		30.0		26.6		26.3
Churches and educational facilities		34.8		34.6		30.8		29.6		29.1		28.5		29.4		28.8		28.6		28.2
Recreation		1.7		1.4		3.3		3.0		3.0		3.0		2.9		2.9		2.8		2.8
Multifamily		27.2		31.7		35.1		29.7		25.3		23.6		23.2		22.4		14.2		16.8
Mobile home parks		3.0		5.6		5.6		5.4		5.3		2.6		2.6		2.5		2.5		2.4
Lodging		26.3		26.3		25.6		25.5		23.5		23.4		22.1		21.9		21.7		20.0
Restaurant		6.1		5.1		5.0		4.7		4.7		4.6		4.5		4.5		4.2		4.3
Agricultural		8.2		11.8		12.0		11.7		11.4		10.8		10.7		10.6		9.2		9.2
Convenience stores		23.3		23.2		22.8		22.1		22.3		21.0		18.9		18.6		20.1		20.0
Marina		18.1		18.0		5.9		15.8		15.7		22.2		22.1		21.9		21.7		21.5
Other		24.9		29.6		28.1		26.6		25.3		25.6		26.8		28.0		27.4		27.3
		546.9		572.8		584.5		584.1		571.0		562.8		546.9		543.6		527.2		516.9
Total real estate mortgages		1,116.6		1,135.3		1,143.5		1,109.0		1,098.3		1,082.5		1,064.7		1,060.6		1,047.5		1,040.0
Commercial & financial		75.5		71.8		66.0		61.1		62.1		49.9		54.0		48.8		51.5		48.0
Installment loans to individuals
Automobile and trucks		19.4		18.0		16.6		15.3		14.4		12.9		11.6		10.9		10.1		9.5
Marine loans		26.3		26.9		26.8		26.4		25.3		27.3		19.7		19.8		19.4		20.2
Other		25.7		24.3		23.3		22.3		21.7		20.8		20.9		20.9		20.9		21.6
		71.4		69.2		66.7		64.0		61.4		61.0		52.2		51.6		50.4		51.3
Other		0.3		0.3		0.3		0.5		0.2		0.3		0.3		0.3		0.3		0.4
	$	1,632.6	$	1,584.3	$	1,504.6	$	1,397.5	$	1,373.3	$	1,300.6	$	1,263.3	$	1,240.6	$	1,225.4	$	1,188.9

QUARTERLY TRENDS — INCREASE (DECREASE) IN LOANS BY QUARTER (Dollars in Millions) Unaudited
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	2009												2010												2011
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr
Construction and land development
Residential
Condominiums	$	(1.1	)	$	0.4		$	(7.7	)	$	(2.9	)	$	(5.2	)	$	—		$	—		$	—		$	(0.4	)	$	(0.5	)
Townhomes		(1.9	)		(1.9	)		(2.3	)		—			—			—			—			—			—			—
Single family residences		(6.3	)		(3.7	)		(9.7	)		(3.0	)		(0.2	)		(0.3	)		0.2			(3.8	)		—			—
Single family land and lots		(1.4	)		(8.1	)		(17.9	)		(2.9	)		(0.9	)		(6.1	)		(5.2	)		(3.3	)		(0.4	)		(0.1	)
Multifamily		(2.0	)		(7.2	)		(1.5	)		(1.2	)		(0.2	)		(2.2	)		(6.2	)		(0.2	)		—			(0.4	)
		(12.7	)		(20.5	)		(39.1	)		(10.0	)		(6.5	)		(8.6	)		(11.2	)		(7.3	)		(0.8	)		(1.0	)
Commercial
Office buildings		0.1			(3.6	)		—			0.1			(0.2	)		(13.7	)		—			—			—			—
Retail trade		1.3			(14.1	)		(32.9	)		(19.1	)		—			(3.9	)		—			—			—			—
Land		(12.4	)		(9.7	)		(0.4	)		(5.2	)		0.1			(7.2	)		(3.4	)		(1.5	)		0.3			(23.6	)
Industrial		(4.3	)		(0.5	)		(0.3	)		(5.7	)		—			(2.2	)		—			(0.3	)		—			—
Healthcare		5.7			0.3			(1.2	)		—			(4.8	)		—			—			—			—			—
Churches and educational facilities		—			—			—			—			—			—			—			—			—			—
Lodging		0.6			(0.6	)		—			—			—			—			—			—			—			—
Convenience stores		—			—			—			—			—			—			—			0.2			0.3			0.1
Marina		0.9			(1.6	)		(1.9	)		(21.3	)		(0.0	)		(6.8	)		—			—			—			—
Other		0.2			(4.8	)		(1.4	)		—			—			—			—			—			—			—
		(7.9	)		(34.6	)		(38.1	)		(51.2	)		(4.9	)		(33.8	)		(3.4	)		(1.6	)		0.6			(23.5	)
Individuals
Lot loans		(1.7	)		(1.6	)		(1.7	)		(1.4	)		(0.4	)		(1.5	)		(1.1	)		(1.9	)		(3.6	)		(1.4	)
Construction		(4.1	)		(4.4	)		(0.7	)		(2.6	)		0.2			(0.5	)		0.9			(2.0	)		0.2			(0.6	)
		(5.8	)		(6.0	)		(2.4	)		(4.0	)		(0.2	)		(2.0	)		(0.2	)		(3.9	)		(3.4	)		(2.0	)
Total construction and land development		(26.4	)		(61.1	)		(79.6	)		(65.2	)		(11.6	)		(44.4	)		(14.8	)		(12.8	)		(3.6	)		(26.5	)
Real estate mortgages
Residential real estate
Adjustable		4.1			(5.1	)		(2.1	)		(36.5	)		1.1			5.4			5.0			2.4			5.3			5.7
Fixed rate		(4.7	)		(0.2	)		(1.1	)		(0.9	)		(1.0	)		(1.6	)		(1.9	)		(1.5	)		4.0			2.2
Home equity mortgages		0.7			(1.7	)		0.1			2.9			2.3			(10.1	)		(4.6	)		(1.0	)		(5.7	)		(4.6	)
Home equity lines		1.8			(0.2	)		(0.4	)		0.4			—			(1.3	)		(0.4	)		(0.7	)		(0.3	)		(0.5	)
		1.9			(7.2	)		(3.5	)		(34.1	)		2.4			(7.6	)		(1.9	)		(0.8	)		3.3			2.8
Commercial real estate
Office buildings		(5.8	)		1.0			2.6			(11.9	)		(1.2	)		(2.9	)		(5.3	)		(0.9	)		(0.7	)		(1.3	)
Retail trade		(2.8	)		10.9			31.4			13.2			(1.1	)		(7.6	)		(3.9	)		(0.5	)		(0.9	)		(1.0	)
Land		—			—			—			—			—			—			—			—			—			—
Industrial		0.6			(2.3	)		(3.7	)		(0.9	)		(6.7	)		2.3			(4.2	)		(1.8	)		(1.7	)		(7.8	)
Healthcare		(0.9	)		2.6			(5.5	)		(0.7	)		4.4			0.3			(0.4	)		1.0			(3.4	)		(0.3	)
Churches and educational facilities		(0.4	)		(0.2	)		(3.8	)		(1.2	)		(0.5	)		(0.6	)		0.9			(0.6	)		(0.2	)		(0.4	)
Recreation		—			(0.3	)		1.9			(0.3	)		—			—			(0.1	)		—			(0.1	)		—
Multifamily		—			4.5			3.4			(5.4	)		(4.4	)		(1.7	)		(0.4	)		(0.8	)		(8.2	)		2.6
Mobile home parks		—			2.6			—			(0.2	)		(0.1	)		(2.7	)		—			(0.1	)		—			(0.1	)
Lodging		(0.3	)		—			(0.7	)		(0.1	)		(2.0	)		(0.1	)		(1.3	)		(0.2	)		(0.2	)		(1.7	)
Restaurant		(0.1	)		(1.0	)		(0.1	)		(0.3	)		—			(0.1	)		(0.1	)		—			(0.3	)		0.1
Agricultural		(0.3	)		3.6			0.2			(0.3	)		(0.3	)		(0.6	)		(0.1	)		(0.1	)		(1.4	)		—
Convenience stores		(0.2	)		(0.1	)		(0.4	)		(0.7	)		0.2			(1.3	)		(2.1	)		(0.3	)		1.5			(0.1	)
Marina		(0.1	)		(0.1	)		(12.1	)		9.9			(0.1	)		6.5			(0.1	)		(0.2	)		(0.2	)		(0.2	)
Other		(0.5	)		4.7			(1.5	)		(1.5	)		(1.3	)		0.3			1.2			1.2			(0.6	)		(0.1	)
		(10.8	)		25.9			11.7			(0.4	)		(13.1	)		(8.2	)		(15.9	)		(3.3	)		(16.4	)		(10.3	)
Total real estate mortgages		(8.9	)		18.7			8.2			(34.5	)		(10.7	)		(15.8	)		(17.8	)		(4.1	)		(13.1	)		(7.5	)
Commercial & financial		(7.3	)		(3.7	)		(5.8	)		(4.9	)		1.0			(12.2	)		4.1			(5.2	)		2.7			(3.5	)
Installment loans to individuals
Automobile and trucks		(1.4	)		(1.4	)		(1.4	)		(1.3	)		(0.9	)		(1.5	)		(1.3	)		(0.7	)		(0.8	)		(0.6	)
Marine loans		0.3			0.6			(0.1	)		(0.4	)		(1.1	)		2.0			(7.6	)		0.1			(0.4	)		0.8
Other		(0.4	)		(1.4	)		(1.0	)		(1.0	)		(0.6	)		(0.9	)		0.1			—			—			0.7
		(1.5	)		(2.2	)		(2.5	)		(2.7	)		(2.6	)		(0.4	)		(8.8	)		(0.6	)		(1.2	)		0.9
Other		—			—			—			0.2			(0.3	)		0.1			—			—			—			0.1
	$	(44.1	)	$	(48.3	)	$	(79.7	)	$	(107.1	)	$	(24.2	)	$	(72.7	)	$	(37.3	)	$	(22.7	)	$	(15.2	)	$	(36.5	)

EX-99.2

EXHIBIT 99.2

To Form 8-K dated July 29, 2011

Seacoast Banking Corporation of Florida
Second Quarter 2011 Earnings Conference Call
July 29, 2011
9:00 AM Eastern Time

Operator:	Welcome to Seacoast’s Second Quarter Earnings Conference Call. My name is Sandra, and I’ll be your operator for today’s call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded.
	I will now turn the call over to Mr. Dennis S. Hudson. Mr. Hudson, you may begin.
Dennis S. Hudson:	Thank you very much, and welcome to Seacoast’s second quarter earnings conference call for 2011. Before we begin, I’ll direct your attention to the statement contained at the end of our press release regarding forward statements. During the call, we’ll be discussing issues that constitute a forward-looking statement within the meaning of the Securities and Exchange Act and, accordingly, our comments are intended to be covered within the meaning of Section 27A of the Act.
	With me today is Jean Strickland, our President and Chief Operating Officer; Bill Hahl, our CFO; and Russ Holland, our Chief Lending Officer.
	Last quarter, I mentioned that our problem assets were likely to decline significantly this quarter, and they did. Nonperforming loans fell to 3.88% during the quarter, which represented $46 million, a level last achieved by us in 2007—actually, it was in mid-2007—which was prior to the start of the financial crisis. This substantial reduction, which included some of our largest remaining problem credits, combined with our successful elimination of all loan concentrations, has reduced the level of credit risk in our loan book to a very manageable level. In fact, the current level of nonaccrual loans is now at or below, and in some cases substantially below, the levels that have been reported this quarter for legacy assets by every other large Florida-based company. Our improved credit quality and the resulting improved earnings performance this quarter begins now to set the stage for even better performance as we look forward to the year ahead.

Net income for the quarter was in the black again for the second quarter, as we expected, and totaled $1.1 million. Earnings attributable to common shareholders was also positive as well. Our results represented a nice improvement over the first quarter and, of course, a very substantial improvement over the losses sustained in quarters prior to that. We expect to remain profitable for the year, and our plan is to continue to demonstrate an improving trend in profitability as we move forward from here.

I was very pleased this quarter with the revenue performance and with our marketplace performance. Revenues were up in virtually every category this quarter, and the driver of that revenue improvement was our continued success in growing our most valuable asset: our customer base. We measured improvement in customer acquisitions in just about every market we operate in. New customer households added so far this year are up 23.8% over the same period last year, and this helped drive revenue improvements for the quarter. Deposit account related revenues were up 11.7% year-over-year. Mortgage banking revenues rebounded, growing 9.7%. Trust income and other categories were up as well.

New households also contributed to growth in low-cost funding, with average non-interest checking balances growing 18.2% over the same time last year. Growth in core deposits, and the resulting impacts on margin and fees, is an important element of our overall core growth strategy, and we are very pleased with our progress.

More recently, as our financial performance has improved, we have also begun to see increased success in attracting larger business, institutional and local governmental relationships, who are placing increased value these days on keeping their business at home. Average repo funding, which is entirely comprised of core institutional relationships, grew by more than 20% over the prior year, and the growth was driven by new relationships to the Bank. These relationships also come with core operating accounts and our suite of Treasury services which are custom tailored for each client. In fact, we are rolling out significant improvements to our scalable business Internet banking platform this quarter, which will significantly improve our marketplace competitiveness and will help support our next steps in our core growth strategy as we translate many of the concepts used to grow our core consumer households into targeted small and medium-sized business segments.

Our core growth strategy is working well, and we have plans to accelerate our progress as we now move forward with improved financial performance and a strong and strengthening capital position. At the center of our strategy is a distinctive customer-centric value proposition which provides an answer to the question “Why bank with Seacoast?” We will accelerate our progress by improving our skills and delivering our value proposition, which is now uniquely distinctive in the post-crisis post-crash period. Our focus is on growing customers and growing revenue while controlling our core operating costs. This is how we will get our operating ratios back into alignment, including our efficiency ratio. As we add to that rapidly declining non-core operating costs over the next year, including declining credit costs, we think this begins to translate into real fundamental value build for shareholders, which of course is the desired outcome of our core growth strategy.

- 2 -

	I’m now going to turn the call over Bill for a few more comments on the quarter and then we will open the floor to questions. Bill?
Bill Hahl:	Thanks, Denny, and good morning. I’ll begin my comments today with a high level review of the income statement. I will be referring to a few slides we have posted on our website.
	Net income available to common shareholders for the quarter was $176,000. This compares favorably to the first quarter loss of $579,000. The primary drivers of the sequential income growth were higher fee income across multiple categories and slightly higher net interest income. Also adding to the improved performance were lower non-interest expenses, partially offset by slightly higher loan loss provisions. These results also compare very favorably to the prior year, driven by higher net interest income and a lower provision as a result of much lower nonperforming loans. I’ll share additional color on the performance in a moment after a few comments on the loan portfolio.
	Average performing loans were nearly flat compared to the first quarter levels of $1.168 billion. However, we continued to make progress in diversifying the loan portfolio as we drove growth in targeted commercial and consumer areas, while further reducing our exposure to construction and land development loans by $26.5 million.
	Loan growth this quarter came primarily from installment loans and 1-4 family adjustable mortgages. Overall loan growth and loan demand remained weaker than we would like, but we are pleased with our progress in growing selected areas of the portfolio while concurrently reducing risk.
	Turning to slides seven and eight for a discussion on deposits, total deposits were up $44 million from the fourth quarter, reaching a level of $1.681 billion. The favorable shift in deposit mix toward lower-cost accounts continued, most notably by a DDA growth of $33 million or 16.4% year-over-year. Higher-cost time deposits declined $33 million over the last 12 months, and savings accounts, including NOW and money market accounts, remained unchanged compared to second quarter last year. Relative to the first quarter of 2011, average deposits were up $41 million or 10%. This growth was entirely from lower-cost accounts, primarily DDA and money market, which increased a combined $37 million. This growth in lower-cost accounts has enabled us to manage down the higher-cost time deposits, which, as I mentioned, declined by $33 million or 6% from the prior year.

- 3 -

Moving to slide nine, which covers the net interest margin, net interest income increased modestly from the first quarter 2011, primarily due to lower NPLs and increased securities portfolio, and was somewhat offset by a reversal of interest income related to a larger performing loan moving to non-accrual in the second quarter. The net interest margin, after expanding each quarter since the second quarter of 2010, stabilized at 3.36% this quarter. Interest-bearing asset yield declined 14 basis points and was partially offset by the 3 basis point contraction in interest-bearing liability costs due to the favorable deposit mix and the lower rates paid. Relative to last year, second quarter net interest income increased by $326,000 or 2%, and the margin expanded by 9 basis points. Favorable deposit trends were the primary drivers as rates paid declined and lower-cost deposit accounts increased.

As we look to the third quarter, while we see both headwinds and tailwinds to the margin, our current expectation is for a fairly stable margin until better loan growth is accomplished.

Turning to slide 10, non-interest income increased $338,000 or 8% sequentially. Most prominent was the $104,000 increase in service charges on deposits, and, coincidentally, interchange income was up $104,000 as well, or 11.7% sequentially. Both of these were the result of the higher core deposit checking accounts, both retail and commercial, that Denny mentioned.

Other notable sequential quarter increases in fee income included mortgage banking fees and marine finance fees. Relative to the prior year, non-interest income was up $295,000 or 7%, despite the decline in overdraft revenues as the result of Reg E implementation.

Now, let’s turn to slide six for a review of expenses. Expenses were down $594,000 on a sequential quarter basis. Lower FDIC assessments accounted for $271,000, or about half of this decline due to the new asset-based assessment methodology. We also saw a decline in employee benefits from the normal cyclically high first quarter, and lower legal and professional fees from improved credit and fewer problem assets to be dealt with.

Removing the unusual expenses in the quarters, that are compared on the slide seven, indicates core operating expenses are being well managed, but remain elevated as a result of the current negative economic environment.

Our asset quality story is a good one again this quarter. We continued, and in some cases accelerated, the multi-quarter trend of improvement that we have seen for seven consecutive quarters. Nonperforming loans and nonperforming assets were down 30.3% and 20.2%, respectively. Net charge-offs remain stable with the first quarter of 2011 and the fourth quarter of 2010 at approximately $4 million, but were significantly lower than second quarter a year ago of $20.2 million. In light of the improvement in credit quality and the continued reduction in our risk profile, the allowance for loan losses declined by 9% in the second quarter to $31.2 million or 2.63% of loans. However, the coverage ratio increased from 44% last year to 68% at June 30, 2011.

- 4 -

	Overall, we are pleased with the direction in which the credit metrics are moving. The early stage delinquency data indicates we may expect these trends to continue. Therefore, as we look to the rest of the year, we expect NPLs to continue to decline. We also expect net charge-offs to continue to trend favorably lower over time.
	I’ll continue my comments by focusing on capital on slide four. Capital ratios continued their expansion this quarter and remained well above regulatory minimums. Tangible common equity grew by an estimated 24 basis points to 5.84%, while Tier 1 was up by an estimated 67 basis points to 17.6%. Tangible common equity ratio on a pro forma basis, including the recapture of the $47.3 million deferred tax asset valuation allowance, would be 7.7%.
	So the highlights of what I have discussed this morning are that: (1) our earnings continued to improve; (2) the provision expense remained low due to improving asset quality; (3) the margin remains stable and could improve as loan growth increases and some additional investments are added; (4) non-interest income improved versus last year’s second quarter, in part due to net new household growth; and, (5) finally, non-interest expenses have declined as cyclically-sensitive expenses are lower and we have managed all other expenses tightly.
	We are encouraged by the continued improvement in our credit metrics. The remaining questions are related to how quickly and how strongly the economy recovers and where real estate values will trend from here. At this time, we are looking forward to continued improvement in our results as 2011 progresses.
	With that, I’ll turn the call back to Denny.
Dennis S. Hudson:	Thank you, Bill. And we’ll open the call for questions.
Operator:	Thank you. We will now begin the question-and-answer session. If you have a question, please press star, then one on your touchtone phone. If you wish to be removed from the queue, please press the pound sign or the hash key. There will be a delay before the first question is announced. If you’re using a speakerphone, you may need to pick up the handset first before pressing the numbers. Once again, if you have a question, please press star, then one on your touchtone phone.
	Your first question is from Bill Young from Macquarie. Please go ahead.
Bill Young:	Hey, good morning, guys.

- 5 -

Dennis S. Hudson:	Good morning.
Bill Hahl:	Good morning.
Bill Young:	Hey. Congrats on reaching profitability again this quarter. Now that you’ve gotten yourself back in the black, have you had any preliminary discussions about the recapture of the DTA and how that’s going to work?
Dennis S. Hudson:	Yeah, we have had a lot of conversation about it, and it would be fair to say we are convinced that it will happen, but we are uncertain as to when. It’s a very complicated story to tell—probably one you’ve heard before—but we are preparing the way for us to eventually do it. We don’t think it’s in the context of years; we think it’s somewhere out in the next few quarters, something we’ll be dealing with and hopefully reporting.
Bill Young:	Gotcha. And then could you just talk about if you have anything in the pipeline in terms of OREO sales or any planned NPL resolutions or sales there?
Dennis S. Hudson:	There isn’t a day that goes by that we don’t have plans for all of the above and it’s been that way for the last few years—so, yes. We said last quarter we had a pretty large bunch of resolutions occurring, and they did occur. Not all of them have closed and gotten off the balance sheet, however, so there’s still more to come. We expect to continue to see improving trends, although in the next quarter they are not going to be as dramatic as they were this quarter. We got a lot done this quarter, but we’ll continue to see the numbers improve based on the things that are in the hopper right now.
Bill Young:	Gotcha.
Dennis S. Hudson:	And I think the more important concept is we just continue to see the inbound migration (1) slowing, and (2) being far more manageable with more granular, smaller deals, that sort of thing. Frankly, we think going forward most of our inbound stuff is going to be more consumer-oriented. I’m not saying that because we have any concern over consumer and mortgage portfolios having problems—quite the opposite. They continue to improve in their overall performance. But I guess it’s fair to say that our more significant, more volatile assets are now off the balance sheet.
Bill Young:	Gotcha. Thank you very much.
Operator:	Thank you. The next question is from Dave Bishop from Stifel Nicholaus. Please go ahead.
Dave Bishop:	Hey, good morning, guys.
Dennis S. Hudson:	Good morning, Dave.

- 6 -

Bill Hahl:	Good morning, David.
Dave Bishop:	Hey, a question for you. You saw a nice reduction in the TDR balances or the structured loan balances this quarter. Should we assume a bunch of those returned to performing accrual status there? Maybe you could give us an update.
Dennis S. Hudson:	All we can say is we had lots of ins and outs on that, not in terms of dollars, particularly, but there’s a lot of moving parts, some pay-offs as well. So, it wasn’t related to moving back to performing status, no. We had pretty stable balance in terms of our performing loans, which I think is something that’s underappreciated. We’ve looked for several quarters now at much more stable performance and maintaining and growing the performing accruing portfolio, and that’s being driven by, again, production beginning to come back for us.
Dave Bishop:	Then in terms of...to remind us, the TARP dividend, that’s still in deferral status, correct?
Dennis S. Hudson:	Yes, we are still in deferral status; and as we have said in the last few calls, restoring our dividend is a function of restoring our earnings. I believe we have now restored our earnings to a level that begins to support that being turned on; and when you combine that with the reduced risk levels, we think we’re getting there. So, we are in those conversations and we’ll just have to see over the next quarter or two how that goes.
Dave Bishop:	Then finally, Denny, one of your in-market competitors noted some frustration with the bankruptcy and foreclosure courts down there with the tremendous backlog. We are hearing rumors that there may be some cutbacks at the judiciary level. Are you seeing that across your markets as well in terms of that backlog really starting to build there during the past month or two?
Russ Holland:	This is Russ Holland. Yes, we do see that, but we’ve actually been successful in negotiating transactions that keep us out of the court system—short sales or settlements—so that we can avoid that to any extent possible.
Dennis S. Hudson:	And that’s worked very well. Russ has done a great job helping us through that maze of thought process. To answer the other part of your question, the cutbacks have already occurred, and we are seeing evidence of a real backlog beginning to build now. It’s being driven, of course, by the governmental financial situation at the county level. The good news, I think Russ pointed out. The only thing I would add is I think our volume of transactions flowing in is slowing to a point where it’s not a...
Russ Holland:	Yeah, we got ahead of it...

- 7 -

Dennis S. Hudson:	Yeah.
Russ Holland:	Ahead of it to avoid it, but...
Dennis S. Hudson:	Yeah, we really focused a lot of attention on the various portfolios to just exit and liquidate, and that’s going to serve us well as we go forward now in a more difficult environment in the court system. So, we don’t see it having... Russ, I think it would be fair to say we don’t really see that having a significant impact on our progress.
Russ Holland:	No. The people that bought some of the loans we sold are probably dealing with it, but we’re avoiding it.
Dennis S. Hudson:	Right.
Dave Bishop:	Great. Thanks for the color, guys.
Operator:	Thank you. The next question is from Ken Puglisi from Sandler O’Neill. Please go ahead.
Ken Puglisi:	Good morning.
Dennis S. Hudson:	Hey, Ken.
Ken Puglisi:	Most of my questions have already been answered, but just looking for a little bit of color on the NPAs and the charge-offs during the quarter. Can you tell me what the magnitude of additional loss was on the loan and OREO sales during the quarter?
Bill Hahl:	Really nothing, I don’t think. The reason, Ken, for the difference between charge-offs and provisioning is that almost all of that was already in the allowance as a specific allowance toward those loans that were charged down.
Ken Puglisi:	Okay. And then you indicated that you expect NPA inflows to continue to decline. What do you calculate the new non-accrual inflow to have been in the second quarter?
Dennis S. Hudson:	We are going to have that in our 10-Q, we don’t have that in front of us right now, but it has been fairly consistent over the last several quarters.
Ken Puglisi:	Okay. I think we had calculated it at something like $17.9 million. Does that sound reasonable?
Dennis S. Hudson:	Yeah, that’s probably reasonable; and again, we think that that number continues to moderate. We had a little increase this quarter, probably, over the prior quarter. It wasn’t that significant, but as we look forward, we see that number coming down.

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Ken Puglisi:	Okay. And on the loan growth, Bill, you indicated that it was weaker than what you would like, and I was wondering if it was in-line with expectations, even though it was weaker than what you would like to see.
Dennis S. Hudson:	Yeah. Russ, maybe you should take that.
Russ Holland:	Yeah. It is in-line with our expectations, but we hope to do better than our expectations, and unfortunately, we haven’t achieved that. So that’s what Bill was referring to. It’s less than what we would like it to be.
Dennis S. Hudson:	There’s no doubt, Ken, that conditions remain weak in the market. Unemployment remains very high in most Florida markets. There are opportunities out there, and we’re getting more of that volume than I would have imagined a year ago. So, we are very pleased with our progress at this point. We have also been focused on some production folks that are coming out of some of the large banks who are beginning to really assist us in gaining some additional market share in the small business segment. We’re excited about that, looking ahead over the next 12 months. So, we have some ways that we’re focused on stabilizing growing the performing part of that portfolio, and we feel pretty good about it.
Ken Puglisi:	Okay, that’s great. Just one other quick thing, there was a reversal of income from a loan that went on non-accrual status during the quarter. I didn’t see—maybe I just missed it, but I didn’t see in here how much that was.
Dennis S. Hudson:	Yeah, we haven’t disclosed that. We were just trying to make the case that when you looked at last quarter’s margin and this quarter margin, there was a considerable amount of noise in it. A lot of that noise was related to the significance of the decline in nonperforming loans that occurred over the last two quarters. It was an unusual noisy quarter. It did include some reversal of income, though, as we stated.
Ken Puglisi:	Okay, will you disclosing that in the Q?
Dennis S. Hudson:	Yes
Ken Puglisi:	Okay. All right, thank you very much.
Dennis S. Hudson:	Thanks.
Operator:	Thank you. The next question is from Mack Hodgson from SunTrust. Please go ahead.

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Mack Hodgson:	Hey, good morning.
Dennis S. Hudson:	Hey, Mack.
Mack Hodgson:	I think most of mine were probably just asked and answered. Maybe if you could, Denny, provide a little more color. I think you made some comments in your remarks on opportunities to have relationships with institutional, government-related entities. Could you give any more detail on those types of relationships? Are there a lot of opportunities there, or is it mainly just funding and Treasury management related?
Dennis S. Hudson:	It’s both. It’s mainly Treasury management, but there are some loan opportunities to go along with it. The point I was trying to make was that as our financial condition has improved and has been made more visibly apparent in our local markets, we are seeing increased opportunities to really take advantage of the turmoil that is out there in some of the other larger banks. It’s really beginning to “pop” for us and work for us. Jean, did you have a comment?
Jean Strickland:	Yeah, another benefit of connecting with the municipal business is the employee opportunities. We do well when we go into businesses and municipals to garner the accounts of the employees that work for those organizations. So, that’s a big benefit as well.
	On the loans—there’s a lot of questions around the loans—we are not disappointed with where we are with our lending and our loan balances. We have a very focused strategy around the professional segment that is working well for us and is lower risk, so as we de-risk our portfolio, the quality of the earnings that we have going forward are not volatile and are very strong.
Mack Hodgson:	Yeah, great, and just maybe one last one. Have you hired any new lenders recently or have any plans to hire new lenders?
Russ Holland:	Yes. The answer to that is, yes, we have in all of our markets and we are continuing to recruit in all of our markets. As Denny pointed out, we are seeing an exodus of lenders from some of the larger institutions that are going through transition right now. Those lenders are bringing over strong customer relationships—customers who are also seeking more of a community bank environment.
Mack Hodgson:	How many were added?
Russ Holland:	We have added six.
Mack Hodgson:	Six, okay. Great.

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Dennis S. Hudson:	You know, the significance of the change post-crisis has been really staggering in the market. In 2005, the top 12 competitors (us included) in our core footprint held 92% of all deposits. Of those 12, only three of them (us included) survived. All of the others have either failed or been significantly changed as a result of the crisis, resulting in a name change and very significant changes in the organization. During that period of time from ’05 to date, we have moved from a number four position in our aggregate markets to a number three position. So, we are seeing some real success. As I said in the opening comments, our value proposition is becoming increasingly distinctive in that environment; and with all of that change occurring, it gives us a great opportunity to really tackle market performance like we’ve never seen in the past. That’s what our plan is.
Mack Hodgson:	Okay, great. Thank you.
Operator:	As a reminder, if you would like to ask a question, please press star, then one on your touchtone phone.
	The next question is from Chris Marinac from FIG Partners. Please go ahead.
Chris Marinac:	Thanks. Good morning, Denny and Bill.
Dennis S. Hudson:	Good morning.
Bill Hahl:	Good morning, Chris.
Chris Marinac:	Just a housekeeping question on the classified assets that were in the last quarter’s 10-Q. Would they have dropped as of June 30th on a commensurate level as the nonperformers, or would they have had a different change?
Bill Hahl:	Yeah, I have seen some flash numbers of that, Chris. We were putting the 10-Q together, and I can tell you that the substandard dropped significantly from year-end. I don’t want to tell you the numbers right now, because they haven’t been ticked and tied, so I’ll just say that I noticed that they were down.
Dennis S. Hudson:	Yeah, we think the classified numbers, including non-accruals, TDRs, impaired and so forth that we disclose every quarter, will be coming down. More importantly, we think they are approaching a level that one would associate with a very moderate level of credit risk.
Chris Marinac:	And that was my follow-up. Is there a level, whether it’s internally or externally, that you have as a goal with your classifieds that would be relative to capital reserves?
Jean Strickland:	We do...

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Dennis S. Hudson:	Oh, yeah.
Jean Strickland:	... and we are on track. We are doing well with our plan.
Chris Marinac:	Okay. And then, Denny, I may have missed it earlier if you commented about the Durbin Amendment. Do you have any sense about how interchange fees will impact you guys if you have to lower them with the bigger banks or how that may play out for Seacoast?
Dennis S. Hudson:	Sure. Jean’s going to answer that.
Jean Strickland:	We have done a lot of work looking at network opportunities as far as where we might place our business going forward; and through that research, we believe that because of the one-PIN one-signature opportunities—that we have to just retain one network for PIN, one network for signature—with the $10 billion cap on affecting institutions, that we will retain our ability to earn higher levels of income there. So, we do not see it having an impact to our revenue source there.
Chris Marinac:	Okay. Do merchants have a say to change their minds on that, or any thoughts about that?
Jean Strickland:	No, if we were required...there were two options in the implementation of this rule. The Federal Reserve had the opportunity to require banks to provide two networks for PIN and two networks for signature, but they only implemented providing for one network for PIN and one network for signature. So the merchants in dealing with us have no choice but to just use the one network. If the two networks—I think it was Option B—had been implemented, then the merchants would have the opportunity to choose between two networks for those transactions and they could go to the lower cost option.
Chris Marinac:	Gotcha. So, a customer presents a B-of-A card and I present a Seacoast card, they’re both getting honored as normal.
Jean Strickland:	Yes. Well, sure, the merchants can say we won’t accept Seacoast cards, but we don’t see that...
Dennis S. Hudson:	No, they can’t, actually, but, yeah, right.
Jean Strickland:	We don’t see that happening.
Dennis S. Hudson:	Right.
Chris Marinac:	Okay, great. Thank you for the color. I appreciate it.
Dennis S. Hudson:	Thanks, Chris.

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Operator:	Once again, if there are any additional questions, please press star, then one on your touchtone phone. At this time there are no further questions.
Dennis S. Hudson:	Thank you very much for attending this morning and we look forward to reporting continued progress in the quarter ahead. Thanks.
Operator:	Thank you. Ladies and gentlemen, this concludes today’s conference. Thank you for participating. You may now disconnect.
Please Note:	* Proper names/organizations spelling not verified.

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EX-99.3

EXHIBIT 99.3

To Form 8-K dated July 28, 2011

Seacoast Banking Corporation of Florida

Second Quarter 2011

Cautionary Notice Regarding Forward-Looking Statements

This information contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, ability to realized deferred tax assets, cost savings, enhanced revenues, economic and seasonal conditions in our markets, and improvements to reported earnings that may be realized from cost controls and for integration of banks that we have acquired, as well as statements with respect to Seacoast’s objectives, expectations and intentions and other statements that are not historical facts. Actual results may differ from those set forth in the forward-looking statements.

Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, and 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 Seacoast 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.

You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “support”, “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “further”, “point to,” “project,” “could,” “intend” or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the effects of future economic and market conditions, including seasonality; governmental monetary and fiscal policies, as well as legislative, tax and regulatory changes; changes in accounting policies, rules and practices; the risks of changes in interest rates on the level and composition of deposits, loan demand, liquidity and the values of loan collateral, securities, and interest sensitive assets and liabilities; interest rate risks, sensitivities and the shape of the yield curve; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market areas and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering

banking products and services by mail, telephone, computer and the Internet; and the failure of assumptions underlying the establishment of reserves for possible loan losses. The risks of mergers and acquisitions, include, without limitation: unexpected transaction costs, including the costs of integrating operations; the risks that the businesses will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; the potential failure to fully or timely realize expected revenues and revenue synergies, including as the result of revenues following the merger being lower than expected; the risk of deposit and customer attrition; any changes in deposit mix; unexpected operating and other costs, which may differ or change from expectations; the risks of customer and employee loss and business disruption, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures and solicitations of customers by competitors; as well as the difficulties and risks inherent with entering new markets.

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, 2010 under “Special Cautionary Notice Regarding Forward-Looking Statements” and “Risk Factors”, and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC’s Internet website at http://www.sec.gov.

Highlights

• Net Income of $176,000, or $0.00 per share, improved significantly compared to last year

• Solid capital position with estimated tangible common equity (TCE) ratio of 7.9% when DTA valuation allowance of $47.3 million is recaptured.

• Nonperforming loans declined from $66.2 million at March 31, 2011 to $46.2 million during the quarter

• Liquidity remains strong with low cost core funding from deposits and sweep repos

• Cost of deposits for the quarter declined 2 basis points to 0.70%; total interest bearing liabilities down 3 basis points to .95%

• Improved asset quality trends continued with nonperforming assets, nonaccrual loans and net charge-offs all declining

• Favorable deposit volume and mix trends continued

• Expenses remain well managed

• Operating trends continue to be encouraging and we remain acutely focused on executing client satisfaction and retention initiatives to drive steadily improving results

Capital Ratios

	2Q-2011			1Q-2011			4Q-2010			3Q-2010
	Estimate			Actual			Actual			Actual
Tier 1 Capital Ratio		17.66	%		16.94	%		16.57	%		17.11	%
Total Risk Based Capital Ratio		18.92	%		18.21	%		17.84	%		18.38	%
YTD Average Equity to YTD Average Assets		8.06	%		8.14	%		8.27	%		8.15	%
Tangible Equity to Tangible Assets		8.10	%		7.84	%		8.10	%		8.76	%
Tangible Common Equity to Tangible Assets		5.84	%		5.60	%		5.81	%		6.48	%
Tangible Common Equity to Risk Weighted Assets		10.09	%		9.47	%		9.43	%		10.32	%

Credit Analysis

	($ in thousands)
	2Q-2011			1Q-2011			4Q-2010			3Q-2010			2Q-2010
Net charge-offs	$	4,024		$	4,031		$	4,678		$	10,700		$	20,209
Net charge-offs to average loans		1.32	%		1.32	%		1.47	%		3.29	%		5.95	%
Loan loss provision	$	920		$	640		$	3,975		$	8,866		$	16,771
Allowance to loans at end of period		2.63	%		2.80	%		3.04	%		3.04	%		3.10	%

Noninterest Expenses
Controllable Expenses Well Managed

	($ in thousands)
	2Q-2011			1Q-2011		2Q-2010
Noninterest expenses	$	19,073		$	19,667	$	18,871
Severance		—			—		199
Reversal of Accrued Legal Settlement		(184	)		—		—
Strategic plan & credit related professional fees		100			247		231
OREO and REPO expenses (1)		768			1,397		564
Net loss on OREO & repossessed assets		1,142			449		105
Nonrecurring expenses	$	1,826		$	2,093	$	1,099
Core operating expenses	$	17,247		$	17,574	$	17,772

	2Q 2011			2Q 2011
	vs 1Q 2010			vs 2Q 2010
Noninterest expenses		-3.0	%		1.1	%
Strategic plan & credit related professional fees
OREO and REPO expenses (1)
Net loss on OREO & repossessed assets
Nonrecurring expenses		-12.8	%		66.2	%
Core operating expenses		-1.9	%		-3.0	%

(1) Does not include personnel expense related to credit administration or default management costs

Core Deposit Growth
Favorable Mix Shift

	($ in thousands)
	2Q-2011		Mix			4Q-2010		Mix			2Q-2010		Mix
Demand deposits (noninterest bearing)	$	321,876		19.1	%	$	289,621		17.7	%	$	276,455		16.1	%
Savings deposits		831,371		49.4	%		812,625		49.6	%		877,544		51.1	%
Total Demand and Savings	$	1,153,247		68.6	%	$	1,102,246		67.3	%	$	1,153,999		67.3	%
Other time certificates		274,565		16.3	%		281,681		17.2	%		288,310		16.8	%
Brokered time certificates		7,532		0.4	%		7,093		0.4	%		19,788		1.2	%
Time certificates of $100,000 or more		246,117		14.6	%		246,208		15.0	%		253,797		14.8	%
Total Time Deposits	$	528,214		31.4	%	$	534,982		32.7	%	$	561,895		32.7	%
Total Deposits	$	1,681,461				$	1,637,228				$	1,715,894

Core Deposit Growth
Favorable Mix Shift

	($ in thousands)						Year			2011
	2Q-2011		4Q-2010		2Q-2010		Over Year			Annualized
Demand deposits (noninterest bearing)	$	321,876	$	289,621	$	276,455		16.4	%		22.3	%
Savings deposits		831,371		812,625		877,544		-5.3	%		4.6	%
Total Demand and Savings	$	1,153,247	$	1,102,246	$	1,153,999		-0.1	%		9.3	%
Other time certificates		274,565		281,681		288,310		-4.8	%		-5.1	%
Brokered time certificates		7,532		7,093		19,788		-61.9	%		12.4	%
Time certificates of $100,000 or more		246,117		246,208		253,797		-3.0	%		-0.1	%
Total Time Deposits	$	528,214	$	534,982	$	561,895		-6.0	%		-2.5	%
Total Deposits	$	1,681,461	$	1,637,228	$	1,715,894		-2.0	%		5.4	%

Net Interest Margin

	2Q-10			3Q-10			4Q-10			1Q-11			2Q-11
Net Interest Margin		3.27	%		3.35	%		3.42	%		3.48	%		3.36	%

• Focus on deposit pricing and favorable deposit trends benefited the margin

• Margin is expected to remain stable until accruing loans outstanding begin to increase

Noninterest Income (excluding securities gains)

$ in thousands	Q-2-2011		Q-1-2011		Q-4-2010		Q-3-2010		Q-2-2010
Total Noninterest Income (excluding securities gains)	$	4,547	$	4,209	$	5,187	$	4,532	$	4,252
Gains on sale of merchant services		—		—		600		—		—
	$	4,547	$	4,209		4,587	$	4,532	$	4,252
Highlights include:
Service Charges	$	1,546	$	1,442	$	1,590	$	1,511	$	1,452
Trust Income		517		523		510		500		491
Mortgage Banking		509		395		580		654		464
Brokerage		223		320		325		306		257
Marine		349		298		355		330		310
Interchange Income		995		891		814		810		822

Service Area