8-K

8-K – page # of 4

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC  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) January 14, 2004

    SEACOAST BANKING CORPORATION OF FLORIDA

(Exact Name of Registrant as Specified in 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)

(772) 287-4000

Registrant’s telephone number, including area code  

Not Applicable

Former Name or Former Address, if changed since last report

8-K – page # of 4

SEACOAST BANKING CORPORATION OF FLORIDA

Item 5.

Other Events and Required FD Disclosure

On January 14, 2004, the Registrant announced its financial results for the fourth quarter and year ended December 31, 2003.  A copy of the press release announcing the Registrant’s results for the fourth quarter and year ended December 31, 2003 is attached hereto as Exhibit 99.1 and incorporated herein by reference.

Item 7.

Financial Statements and Exhibits

Exhibit Number	Description
99.1	Press Release dated January 14, 2004 with respect to Seacoast Banking Corporation of Florida’s financial results for the fourth quarter and year-ended December 31, 2003.
99.2	Transcript of Registrant’s investor conference call held on January 15, 2004 to discuss the Registrant’s financial results for the fourth quarter and year-ended December 31, 2003.
99.3	Charts referenced in the conference call held on January 15, 2004 to discuss the Registrant’s financial results for the fourth quarter and year-ended December 31, 2003.

Item 9.

Regulation FD Disclosure

On January 15, 2004, the Registrant held an investor conference call to discuss its financial results for the fourth quarter and year-ended December 31, 2003.  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 six charts (available on the Registrant’s website) referenced in the conference call and incorporated herein by reference.  All information included in the transcript and the charts is presented as of December 31, 2003, and the Registrant does not assume any obligation to correct or update said information in the future.

The information in the preceding paragraph, as well as Exhibits 99.2 and 99.3 referenced therein, 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 filing under the Securities Act of 1933.

Item 12.

Results of Operations and Financial Condition

On January 14, 2004, the Registrant announced its financial results for the fourth quarter and year ended December 31, 2003.  A copy of the press release announcing the Registrant’s results for the fourth quarter and year ended December 31, 2003 is attached hereto as Exhibit 99.1 and incorporated herein by reference.

8-K – page # of 4

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)

Dated:   

January 15, 2004

By:    /s/ William R. Hahl

Name:  William R. Hahl

Title:  EVP & CFO

EX-1

EXHIBIT 99.1

NEWS RELEASE

Dennis S. Hudson, III

President and Chief Executive Officer

Seacoast Banking Corporation of Florida

(772) 288-6086

William R. Hahl

Executive Vice President/

Chief Financial Officer

 (772) 221-2825

SEACOAST REPORTS FOURTH QUARTER AND YEAR END RESULTS

STUART, FL., January 14, 2004 – Seacoast Banking Corporation of Florida (NASDAQ-NMS:  SBCF), a bank holding company whose principal subsidiary is First National Bank and Trust Company of the Treasure Coast, today reported net income totaling $3,828,000 or $0.24 diluted earnings per share (“DEPS”) for the fourth quarter of 2003, an increase of $413,000 or 12.1 percent compared to the third quarter 2003, but slightly lower when compared to $4,044,000 or $0.26 DEPS for the fourth quarter a year ago. For the year 2003, net income totaled $14.0 million, or $0.89 DEPS, compared to $15.3 million or $0.97 earned in 2002.

“This quarter proved to be an important one for Seacoast.  The results produced begin to demonstrate the improved earnings power that can be created as we continue to transform our loan portfolio and expand our fee based lending businesses, commented Dennis S. Hudson, III, Chief Executive Officer of Seacoast.  “Our strategy continues to be one of focus on long-term quality growth, consistently superior credit management and increased shareholder value.”

The year long momentum in loan production was uninterrupted in the fourth quarter, as evidenced by the continued growth in commercial real estate, residential and consumer loans.  In the fourth quarter total loans outstanding increased $44.7 million or an annualized 26.9 percent when compared to the third quarter 2003.  Total loans increased to $709 million, 3.0 percent over the prior year.  Loan growth earlier in the year was impacted by heavy prepayments as interest rates declined.

The net interest margin improved each month of the fourth quarter with December’s margin increasing to nearly 4.0 percent.  The net interest margin for the fourth quarter increased 38 basis points over the third quarter and totaled 3.82 percent compared to 4.02 percent for the same quarter last year.  The improvement in the net interest margin was impacted by increased asset yields as a result of a steeper yield curve and an improvement in loan mix as well as growth in the loans outstanding.

Other highlights for the quarter included the following:

•

Return on average assets for the fourth quarter improved to 1.14 percent compared to 1.04 percent for the third quarter and 1.07 percent for the entire year of 2003;

•

The return on average equity for the fourth quarter was 14.46 percent compared to 13.27 percent the third quarter of 2003 and 13.73 percent for this year;

•

Average equity to average assets remained strong at 7.82 percent compared to 7.99 percent one year earlier;

•

Residential mortgage production was exceptional with a total of $261 million in residential applications processed for the year and $52 million for the fourth quarter;

•

Average fourth quarter noninterest bearing deposits increased $38 million or 20.9 percent for the year;

•

Total deposits increased $99 million or 9.6 percent for the year; and

            •

Seacoast Marine originated loans totaling $184 million for the period ended    December 31, 2003, compared to $92 million in 2002.

Net interest income (on a tax equivalent basis) increased to $12,253,000 or 5.2 percent from fourth quarter 2002 and grew in the third quarter 2003 by $1,423,000 or 13.1 percent.  The improvement in net interest income comes from the growth in our balance sheet and the favorable overall change in earning asset mix, as well as the growth in low cost and no cost deposits.  Interest bearing deposit costs declined eight basis points from September 2003 to year end.  In addition, noninterest bearing deposits increased 26.3 percent over the prior year and now comprise 21 percent of total deposits, up from 18 percent for 2002.  The cost of interest bearing deposits at year end 2003 declined to 1.35 percent from 2.01 percent in the fourth quarter 2002.  Interest bearing deposits increased $50.5 million, or 6.0 percent over the past twelve months.  Lower cost savings, NOW and money market balances increased $54.4 million or 11.5 percent.

Prospects for future margin improvement remain positive, as a result of increased loan and core deposit growth as the Treasure Coast continues to grow, as well as our expansion into Palm Beach County.  The Company is the Treasure Coast’s most convenient bank with 25 branch locations, more than any of its competitors, and ranks second in size with over $1.1 billion in total deposits.  The Company is close to surpassing Wachovia’s $1.2 billion in deposits which would rank Seacoast the largest bank in the fast growing Treasure Coast market.

The response to the expansion into Palm Beach County has been very positive.  The addition of three full service branches in 2003, combined with a strong loan production team, has resulted in over $55 million in loans outstanding and a loan pipeline of $67 million in this new market.  The acquisition of Palm Beach County’s two largest community banks by large out-of-market competitors in 2002 and the announcement in October 2003 of the opening of a new campus in north Palm Beach of the internationally recognized Scripps Research Institute has enhanced the prospects for future loan and deposit growth from this market.

Noninterest income, excluding securities gains and losses, increased 15.2 percent when compared to the prior year, reflecting reduced revenues from investment management services, offset by increased revenues from mortgage banking and marine lending.  During the fourth quarter 2003, noninterest income related to mortgage loan production declined to $464,000 compared with $1,098,000 earned in the third quarter of 2003.  Likewise, revenues from marine loan production decreased to $592,000 from $903,000 in the third quarter.  Both business lines were impacted by higher interest rates in the fourth quarter, the Company retaining more loans in its portfolio, and the seasonality in demand for these products.  The future for production of residential mortgages looks favorable as the housing market on the Treasure Coast is predicted to strengthen further in 2004.  General impr ovements in the national economy and continued improvement in the equity markets could help boost revenues from Seacoast Marine and from investment management in 2004.  Revenues from investment management improved in the fourth quarter and were up slightly from a year ago.

            Total noninterest expense in the fourth quarter was $10.3 million, up 1.6 percent from the fourth quarter of 2002.  The fourth quarter last year included higher commissions and incentive compensation related to last year’s revenue and earnings growth year over year.  For the full year of 2003, total noninterest expense was $42.6 million, up 7.1 percent from last year’s fourth quarter.  Noninterest expenses in 2004 will be impacted by the opening of two additional offices in Palm Beach County later in the year, a planned loan production office in Brevard County and potentially higher levels of incentive based compensation expense.

Core deposit growth continued to enhance fees by increasing the customer base and usage of check cards.  During 2003, a total of $1,169,000 in interchange income was earned compared to $980,000 for the same period in 2002.  The growth rate of these fees was negatively impacted in 2003 as a result of VISA and MasterCard agreeing to reduce check card interchange fees beginning in August 2003.  The negative impacts have been nearly offset with the growth in the cardholder base and transaction volumes.

Net loan charge offs were $666,000 for the year in 2003, compared to net charge-offs of $208,000 for 2002.  Net recoveries of $20,000 were collected in the fourth quarter 2003.  Loan delinquencies, nonaccruals and the percentage of loans past due 90 days to average loans declined to 0.16 percent at December 31, 2003, compared to 0.33 percent for the year end 2002.  Nonperforming assets totaled $3,045,000 at December 31, 2003, consisting of $1.1 million in nonperforming loans and $2.0 million in other real estate owned, an increase from the $2,249,000 in 2002.  All the nonperforming assets are secured by assets with fair values believed to be in excess of carrying value and no significant losses should be incurred.

The allowance for loan losses totaled $6.2 million, representing 565 percent of nonperforming loans.  The allowance as a percentage of total loans was 0.87 percent compared to 0.99 percent in the prior year.  The Company’s net charge-offs and nonperforming asset levels have historically been much better than industry averages.  Although the Company experienced meaningful commercial/commercial real estate loan growth in the past quarter, the Company’s historically low charge-offs in these portfolios, improved credit quality, and the modest year over year loan growth has not required an addition to the allowance this year.  Further, while it is believed that loan growth is likely to continue, the size of any future provision for loan losses is not expected to meaningfully impact quarterly earnings results.

Seacoast management will host a conference call on January 15 at 9:00 a.m. (Eastern time) to discuss the earnings results and business trends.  Investors may call in by dialing 866-246-6870 (passcode: 3968770; leader: Dennis Hudson).  Six charts will be used during the conference call and may be accessed at Seacoast’s website at www.seacoastbanking.net under “Presentations”.  A replay of the call will be available beginning the afternoon of January 16 by dialing 888-211-2648 (domestic), using the passcode 3968770.

Seacoast Banking Corporation of Florida has approximately $1.3 billion in assets.  It is one of the largest independent commercial banking organizations in Florida, headquartered on Florida’s Treasure Coast, one of the wealthiest and fastest growing areas in the nation.

- continued -

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.

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 Banking Corporation of Florida ("Seacoast" or the "Company") 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”, “indicate”, “would”, “believe”, “contemplate”, “expect”, “estimate”, “continue”, “point to”, “project”, “predicted”, “prospects”, “could”, “intend”, “believed” 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 conditions; governmental monetary and fiscal policies, as well as legislative and regulatory changes; the risks of changes in interest rates on the level and composition of deposits, loan demand, and the values of loan collateral, s ecurities, and interest sensitive assets and liabilities; interest rate risks and sensitivities; 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 the Company's market area 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; the failure of assumptions underlying the establishment of reserves for possible loan losses, and the risks of mergers and acquisitions, including, without limitation, the related costs, including integrating operations as part of these transactions, and the failure to achieve the expected gains, revenue growth and/or expense savings from such transactions.  

All written or oral forward looking statements attributable to the Company are expressly qualified in their entirety by this Cautionary Notice including, without limitation, those risks and uncertainties, described in the Company's annual report on Form 10-K for the year ended December 31, 2002 under “Special Cautionary Notice Regarding Forward Looking Statements”, and otherwise in the Company's SEC reports and filings.  Such reports are available upon request from Seacoast, or from the Securities and Exchange Commission, including the SEC’s website at http://www.sec.gov.

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FINANCIAL  HIGHLIGHTS  (Unaudited)
SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES
	Three Months Ended					Twelve Months Ended
(Dollars in thousands,	December 31,					December 31,
except per share data)	2003		2002			2003		2002
Summary of Earnings
Net income	$    3,828		$     4,044			$  14,016		$ 15,286
Core operating income (4)	3,828		4,043			14,787		15,005
Net interest income  (1)	12,253		11,648			45,920		47,603
Performance Ratios
Return on average assets  (2), (3)	1.14	%	1.32	%		1.07	%	1.26	%
Return on average
shareholders' equity  (2), (3)	14.46		16.24			13.73		15.75
Net interest margin  (1), (2)	3.82		4.02			3.69		4.13
Per Share Data (A)
Net income diluted	$      0.24		$       0.26			$      0.89		$    0.97
Net income basic	0.25		0.26			0.91		1.00
Cash dividends declared	0.13		0.10			0.46		0.37
			December 31,					Increase/
			2003		2002			(Decrease)
Credit Analysis
Net charge-offs year-to-date			$           666		$          208			220.2	%
Net charge-offs to average loans			0.10	%	0.03		%	233.3
Loan loss provision year-to-date			$              --		$             --			--
Allowance to loans at end of period			0.87	%	0.99		%	(12.1	)
Nonperforming assets			$        3,045		$       2,249			35.4
Nonperforming assets to loans and other
real estate owned at end of period			0.43	%	0.33		%	30.3
Selected Financial Data
Total assets			$  1,353,823		$ 1,281,297			5.7
Securities – Available for Sale (at fair value)			484,223		466,278			3.8
Securities – Held for Sale (at amortized cost)			80,866		32,181			151.3
Net loans			702,632		681,335			3.1
Deposits			1,129,642		1,030,540			9.6
Shareholders' equity			104,084		100,747			3.3
Book value per share (A)			6.71		6.59			1.8
Tangible book value per share (A)			6.53		6.37			2.5
Average shareholders' equity
to average assets			7.82	%	7.99		%	(2.1	)

(A)  Reflects 10% stock dividend paid as a stock split effective August 1, 2003.

(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.

(4) Net income excluding investment security gains and losses.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME  (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

			Three Months Ended					Twelve Months Ended
			December 31,					December 31,
(Dollars in thousands, except per share data)			2003			2002		2003		2002
Interest on securities:
Taxable	$		4,624		$	3,588	$	16,054	$	14,274
Nontaxable			28			47		147		195
Interest and fees on loans			11,260			12,919		45,941		55,462
Interest on federal funds sold			11			60		70		526
Total Interest Income			15,923			16,614		62,212		70,457
Interest on deposits			769			1,060		3,295		4,947
Interest on time certificates			2,215			3,181		9,892		14,949
Interest on borrowed money			719			769		3,250		3,139
Total Interest Expense			3,703			5,010		16,437		23,035
Net Interest Income			12,220			11,604		45,775		47,422
Provision for loan losses			0			0		0		0
Net Interest Income After Provision for Loan Losses				12,220		11,604		45,775		47,422
Noninterest income:
Service charges on deposit accounts			1,209			1,297		4,907		5,105
Trust income			498			503		2,043		2,177
Mortgage banking fees			464			1,338		4,423		3,364
Brokerage commissions and fees			493			469		1,863		2,045
Marine finance fees			592			713		3,161		1,408
Debit card income			259			252		1,169		980
Other deposit based EFT fees			114			97		441		376
Other income			354			335		1,429		1,419
			3,983			5,004		19,436		16,874
Securities gains (losses)			0			2		(1,172	)	457
Total Noninterest Income			3,983			5,006		18,264		17,331
Noninterest expenses:
Salaries and wages			3,995			4,206		16,641		15,761
Employee benefits			1,044			1,129		4,595		4,304
Outsourced data processing			1,297			1,181		5,265		4,795
Occupancy expense			1,009			874		3,956		3,365
Furniture and equipment expense			362			452		1,739		1,989
Marketing expense			559			511		2,119		2,036
Legal and professional fees			219			391		1,336		1,538
FDIC assessments			37			42		163		173
Amortization of intangibles			0			63		150		252
Foreclosed and repossessed asset management and disposition			167			(95	)	182		(45)
Other expense			1,575			1,345		6,466		5,622
Total Noninterest Expenses			10,264			10,099		42,612		39,790
Income Before Income Taxes			5,939			6,511		21,427		24,963
Provision for income taxes			2,111			2,467		7,411		9,677
Net Income		$	3,828		$	4,044	$	14,016	$	15,286
Per share common stock (A):
Net income diluted		$	0.24		$	0.26	$	0.89	$	0.97
Net income basic			0.25			0.26		0.91		1.00
Cash dividends declared			0.13			0.10		0.46		0.37
Average diluted shares outstanding			15,733,587			15,672,714		15,667,015		15,717,893
Average basic shares outstanding			15,370,615			15,281,699		15,334,765		15,350,353

(A)  Reflects 10% stock dividend paid as a stock split effective August 1, 2003.

CONDENSED CONSOLIDATED BALANCE SHEETS  (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

		December 31,		December 31,
(Dollars in thousands)		2003		2002
Assets
Cash and due from banks	$	44,928	$	49,571
Federal funds sold and interest bearing deposits		255		251
Securities:
Available for sale (at fair value)		484,223		466,278
Held for sale (at amortized cost)		80,866		32,181
Total Securities		565,089		498,459
Loans sold and available for sale		5,403		13,814
Loans		708,792		688,161
Less: Allowance for loan losses		(6,160)		(6,826)
Net Loans		702,632		681,335
Bank premises and equipment		16,847		16,045
Other real estate owned		1,954		8
Other assets		16,715		21,814
	$	1,353,823	$	1,281,297
Liabilities and Shareholders’ Equity
Liabilities
Deposits
Demand deposits (noninterest bearing)	$	233,087	$	184,524
Savings deposits		527,400		472,976
Other time deposits		262,904		279,255
Time certificates of $100,000 or more		106,251		93,785
Total Deposits		1,129,642		1,030,540
Federal funds purchased and securities sold under agreements to repurchase, maturing within 30 days		74,158		102,967
Other borrowings		40,000		40,000
Other liabilities		5,939		7,043
		1,249,739		1,180,550
Shareholders' Equity
Preferred stock		--		--
Common stock		1,710		1,555
Additional paid in capital		26,911		26,994
Retained earnings		95,336		89,960
Treasury stock		(17,297)		(18,578)
		106,660		99,931
Other comprehensive income (loss)		(2,576)		816
Total Shareholders’ Equity		104,084		100,747
	$	1,353,823	$	1,281,297
Common Shares Outstanding		15,503,626		15,279,001

Note:  The balance sheet at December 31, 2002 has been derived from the audited financial statements at that date.

CONSOLIDATED QUARTERLY FINANCIAL DATA   (Unaudited) SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
							Quarters
		2003
	(Dollars in thousands, except per share data)	Fourth		Third		Second		First
	Operating Ratios
	Return on average assets (2),(3)	1.14	%	1.04	%	1.09	%	1.02
%	Return on average shareholders' equity (2),(3)	14.46		13.27		14.08		13.07
	Net interest margin (1),(2)	3.82		3.44		3.63		3.89
	Average equity to average assets	7.87		7.84		7.74		7.81
	Credit Analysis
	Net charge-offs	$     (20	)	$     (29	)	$    435		$    280
	Net charge-offs to average loans	(0.01	)%	(0.02	)%	0.26	%	0.16
%	Loan loss provision	$        --		$        --		$       --		$       --
	Allowance to loans at end of period	0.87	%	0.92	%	0.94	%	0.99
%	Nonperforming assets	$ 3,045		$ 3,225		$ 3,238		$ 1,901
	Nonperforming assets to loans and other real estate owned at end of period	0.43	%	0.48	%	0.50	%	0.29
%	Nonaccrual loans and accruing loans 90 days or more past due to loans outstanding at end of period	0.16		0.18		0.49		0.29
	Per Share Common Stock (A)
	Net income diluted	$   0.24		$   0.22		$   0.23		$   0.21
	Net income basic	0.25		0.22		0.23		0.21
	Cash dividends declared	0.13		0.13		0.10		0.10
	Book value per share	6.71		6.75		6.63		6.56

(A)  Reflects 10% stock dividend paid as a stock split effective August 1, 2003.

(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 ratios which may be expected for the entire year.

(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.

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CONSOLIDATED QUARTERLY FINANCIAL DATA   (Unaudited) (continued)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

(Dollars in thousands)

SECURITIES	December 31, 2003		December 31, 2002
U.S. Treasury and U. S. Government Agencies	$	1,002	$	2,508
Mutual funds		0		292
Mortgage-backed		477,018		456,655
Other securities		6,203		6,823
Securities Available for Sale		484,223		466,278
U.S. Treasury and U. S. Government Agencies		4,998		0
Mortgage-backed		73,585		28,555
Obligations of states and political subdivisions		2,283		3,626
Securities Held for Investment		80,866		32,181
Total Securities	$	565,089	$	498,459
LOANS	December 31, 2003		December 31, 2002
Real estate construction	$	107,315	$	77,909
Real estate mortgage		470,391		478,123
Installment loans to individuals		84,512		91,307
Commercial and financial		46,310		40,491
Other loans		264		331
Total Loans	$	708,792	$	688,161

AVERAGE BALANCES, YIELDS AND RATES  (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

		2003						2002
		Fourth Quarter		Third Quarter				Fourth Quarter
		Average	Yield/		Average	Yield/		Average	Yield/
(Dollars in thousands)		Balance	Rate		Balance	Rate		Balance	Rate
Assets
Earning assets:
Securities:
Taxable	$	576,859	3.21%	$	575,915	2.56%	$	411,457	3.49	%
Nontaxable		2,183	7.88		2,924	7.93		3,505	7.99
Total Securities		579,042	3.22		578,839	2.58		414,962	3.53
Federal funds sold and other
short-term investments		4,649	0.94		7,265	0.98		17,001	1.40
Loans, net		689,353	6.49		662,425	6.60		718,650	7.14
Total Earning Assets		1,273,044	4.97		1,248,529	4.69		1,150,613	5.74
Allowance for loan losses		(6,177	)		(6,123	)		(6,817	)
Cash and due from banks		36,116			31,240			44,982
Premises and equipment		16,781			16,858			16,161
Other assets		14,056			11,472			12,357
	$	1,333,820		$	1,301,976		$	1,217,296
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
NOW (including Super NOW)	$	70,682	0.47%	$	61,928	0.47%	$	61,321	0.77	%
Savings deposits		157,089	0.51		154,759	0.51		145,226	0.80
Money market accounts		292,293	0.66		290,248	0.67		254,627	1.01
Time deposits		359,342	2.45		365,558	2.58		376,043	3.36
Federal funds purchased and securities sold under agreements to repurchase		68,718	0.77		50,596	0.60		54,876	0.88
Other borrowings		56,576	4.11		65,000	4.43		40,000	6.42
Total Interest-Bearing Liabilities		1,004,700	1.46		988,089	1.58		932,093	2.13
Demand deposits (noninterest-bearing)		218,489			205,740			180,763
Other liabilities		5,633			6,069			5,637
Total Liabilities		1,228,822			1,199,898			1,118,493
Shareholders' equity		104,998			102,078			98,803
	$	1,333,820		$	1,301,976		$	1,217,296
Interest expense as a % of earning assets			1.15%			1.25%			1.73	%
Net interest income as a % of earning assets			3.82			3.44			4.02

(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.

- ## -

EX-2

Exhibit 99.2

Seacoast Banking Corporation of Florida

Transcript of the Fourth Quarter 2003 Earnings Release Conference Call

January 15, 2004

< Conference Call>
<Confirmation Number:  3968770>

<Date:  January 15, 2004>
<Time:  9:00 a.m. EST>
<Header:  Seacoast Banking Corporation>
<Host:  Dennis Hudson>

<Length of Call:  29:00>

OPERATOR:  Good day, ladies and gentlemen, and welcome to your Seacoast Banking Corporation’s fourth quarter conference call.  

At this time, all participants are in a listen-only mode.  Today we will conduct a brief question-and-answer session, and instructions will follow at that time.  If anyone should require assistance during today's program please press star, then zero, on your touch-tone telephone.

I would now like to introduce your host for today's conference call, Chief Executive Officer, Dennis Hudson.  You may proceed, sir.

DENNIS HUDSON, CHIEF EXECUTIVE OFFICER, SEACOAST BANKING CORPORATION:  Thank you very much, and welcome to Seacoast's fourth quarter earnings conference call.

Before I begin I'd like to address your attention to the statement contained at the end of our press release regarding forward statements.  During this call, we may be discussing certain issues that constitute forward-looking statements 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 Bill Hall, our Chief Financial Officer, and Bill and I will be available to answer questions following our brief prepared remarks.

The quarter just ended was indeed a telling one for Seacoast.  For a very long time we've enjoyed a deposit funding cost that has consistently ranked us among the best when compared to our peers.  We've enjoyed this enviable position due to our dominant market focus and relationship-based customer acquisition strategy.

For almost two years now we've been working to further improve our long-term prospects of producing better net interest margins by improving our mix of earnings assets while continuing to maintain our long-standing low-cost funding costs.

Specifically we've been building a greater capacity to produce higher yielding commercial and consumer loans, while transforming our strong ability to generate lower yielding residential loans into a more profitable fee-based business.

Much of this work and our success was hidden over the past year by the extraordinarily low interest rate environment, as ever increasing prepayments of our residential real estate loans, together with our decision to originate and sell most of our current residential production, combined to produce an overall negative growth for loans.

This situation reversed strongly in the quarter just ended.  During the quarter we produced remarkable growth in loan balances and a meaningful improvement in our net interest margin.  We feel these trends will continue, although less dramatically, into 2004.  

Our goal is to produce a more competitive net interest margin over the long term as we continue our work.  In addition, we believe our longer-term interest rate risk profile has been improved in the process, which will place us in a stronger competitive position as interest rates inevitably increase.

I'd like to shift focus now and update you on what's happening in our markets.  As most of you know, we operate in some of the fastest growing and wealthiest markets in Florida.  Our close proximity to the Southeast Florida area make us an ideal place to escape from the densely over developed markets to the south.  Today over half of the Treasure Coast's population growth is coming from markets to the south, and this trend seems to be accelerating.  

Our dominant, number one, market position in Stuart and Martin County has spread to the north in St. Lucie and Indian River Counties.  And today we are very close to surpassing Wachovia as the largest financial institution in the rapidly developing Treasure Coast market.

Our expansion into Palm Beach County this year has also been very positive.  In just a few short months we have built a bank there that rivals a couple of startup competitors that have been in the market for a number of years.  This is a market that has been hit with disruption recently, and we will continue to position ourselves as the third alternative in banking:  personal service you can't find in the large banks, combined with the capacity to handle your business that you can't always find in a local community bank.

We look to grow significantly in this market over the next few years.  We will be opening two additional offices here in the summer of 2004, which will give us a total of five offices, all located in the fast-growing north end of the Palm Beach County market.  These offices are concentrated in the communities of Palm Beach Gardens and Jupiter, for those of you familiar with Palm Beach County.  

We also this quarter announced plans to enter Brevard County to the north with a loan production office and loan production team in 2004.  This important market, part of Florida's Space Coast, has already been providing us with some lending opportunities, and we believe that it will continue to assist us as we continue our effort to build our commercial and consumer base of business in the coming years.

I'll now turn the call over to Bill Hahl, our Chief Financial Officer, who is going to further report on our results for the quarter.  Bill?

WILLIAM HAHL, CHIEF FINANCIAL OFFICER, SEACOAST BANKING CORPORATION:  Thank you, Denny.  I will begin with discussing loan production for the year and the fourth quarter, the highlights related to the quarter and year-to-date for non-interest items, and conclude with some comments on deposit growth, the net interest margin, and the allowance for loan losses.

Beginning with lending production, commercial lending originations, primarily commercial real estate, continued to improve and totaled approximately $171 million for the year.  This is a great improvement over 2002 where a total of $83 million was originated.  The expansion into Palm Beach County has added $55 million to loans outstanding at year end, and we begin 2004 with a pipeline in this new market of $67 million.

Commercial and commercial real estate loan outstandings, including commercial real estate construction, increased a total of $58 million or 16.6 percent during 2003.  

I ask you now to refer to our slides for loans outstanding that we posted on our website for this call.  Our strategy to reduce the relative size of our residential portfolio while building our commercial and consumer loan capabilities, as well as the historical low interest rates, initially resulted in declines in loans outstanding for the years 2001 and 2002.

However, with a steeper yield curve slowing loan prepayments, the successful expansion this year into Palm Beach County, and the continued growth in the company's existing markets, loan growth resumed in the third quarter 2003 and was up two percent for that quarter.  This loan production momentum continued to accelerate in the fourth quarter with the quarterly growth rate increasing to seven percent.  Further, we believe the annual growth rate in 2004 could average in the mid-teens, provided the economy continues to improve and interest rates remain favorable.

Mortgage banking originations were again solid for the quarter with production of $52 million versus $55 million in the third quarter.  This quarter's production and year-to-date results were all originated within the Company's footprint, with over 30 percent of these originations from our branches.  

We have the best branch coverage of any competitor on the Treasure Coast.  In addition to mortgage loans, the branches originate direct consumer loans.  Installment loans to individuals increased $5 million or seven percent in the fourth quarter.

Moving to the highlights of non-interest items, the improved year-over-year, non-interest income growth was aided by increases in fee-based businesses, an increased customer base, and market expansion.  For the year, non-interest income represented 30 percent of total revenues, up from 26 percent a year ago.

Mortgage banking revenues for the quarter totaled $464,000, lower than the third quarter's $1.1 million.  The expansion into Palm Beach County has assisted in increasing our production capabilities.  However, revenues were lower due to some production, primarily adjustable rate products, being allocated to the bank's portfolio, aiding in the loan growth mentioned earlier.

The Company intends to open three more Palm Beach Country locations, as Denny indicated,  two in 2004, one in 2005, to continue to enhance its lending capabilities.

The Company's marine finance division, which we started in 2000 in Fort Lauderdale, Florida, to leverage off our 30-year history of making marine loans in our local markets, is primarily a fee-based business with loan production personnel in Florida and California.  Revenues in the fourth quarter were lower due to $8 million of Florida marine production being added to the bank's loan portfolio and the normal seasonality of these revenues.  The income generated from the sale of non-recourse marine loans totaled $592,000 in the quarter, a decline over the third quarter's $903,000.  However, revenues for the year totaled $3.2 million, up from $1.4 million in 2002.  

For the year, a total of $184 million in loans were originated compared to $92 million in 2002.  As indicated previously, we do portfolio select, in-market marine loans and have a portfolio that totals $28 million at year end.

Moving into investment management, the key to our long-term profitability is growing our affluent customer base on the Treasure Coast and our broad assortment of wealth products and services.  Revenues generated from trust and investment management services in the fourth quarter increased 15.5 percent versus the third quarter and were slightly better than a year ago.  Continued improvement in the equity markets and general improvement in the national economy could help boost revenues from investment management in 2004.

My next comments will be about deposit growth over the past 12 months and the positive change in the mix that has occurred.  Please refer to the slide included in our website for this conference call.  

A positive result of our long-term SuperCommunity Bank strategy is the Company's success at maintaining and growing low-cost funding relationships.  Deposit growth for the past 12 months totaled $99 million, a 9.6-percent increase, with over $48 million or an increase of 26 percent in non-interest-bearing deposits and an increase of $54 million or 11-and-a-half percent in low-cost NOW and savings deposits.

Deposit growth included the addition of $6 million in deposits in Palm Beach County in the fourth quarter and a total of $36 million for all of 2003 with $22 million in DDA, NOW and savings balances.  

The next area I will cover will be our net interest margin improvement.  The net interest margin improved each month of the fourth quarter, with December's margin increasing to nearly 4.0 percent.  The net interest margin for the fourth quarter increased to 38 basis points over the third quarter and totaled 3.82 percent compared to 4.02 percent for the same quarter last year.  

The improvement in the net interest margin resulted from asset yields increasing as a result of the steeper yield curve, while funding costs declined as a result of the favorable growth in no-cost and low-cost deposits that I mentioned.  In addition, the margin benefited from the positive change in earning assets and the growth in the loan portfolio.  

Margin expansion is likely to continue in the near term, but at a slower pace than the fourth quarter, and is dependent upon loan growth and economic improvement.  When simulated in our ALCO model, the expansion of the Company's net interest margin for the first quarter of 2004 could be in the range of 15 to 20 basis points.  We'll continue to update you on our margin improvements throughout 2004.

Now please refer to the slides included on our website related to non-performing assets, net charge-offs, loan loss reserves, and loan portfolio outstandings by quarter for 2003.

The Company's allowance for loan losses totaled $6.2 million and represents 0.87 percent of total loans compared to 0.99 percent in the prior year and 564 percent of non-performing loans at year-end 2003.

Our net charge-offs and non-performing asset levels have historically been much better than industry averages, as can be seen on the charts I referenced earlier.  Although the Company experienced meaningful commercial and commercial real estate loan growth in the past quarter, the Company's historically low charge-offs in these portfolios, proven long-term credit quality, and the modest year-over-year total loan growth led us to conclude that an addition to the allowance for loan losses for the fourth quarter was not required.

Further, while we believe that future loan growth is likely to continue at double-digit levels in 2004 and a provision for loan losses will be necessary, the size of a provision will likely not be impactful to quarterly earnings results.

Denny?

HUDSON:  Thank you, Bill.

We at this point we would love to pause and take a few questions, if there are any questions.  And I'll turn the call back over to our moderator.

OPERATOR:  Ladies and gentlemen, if you have a question or a comment at this time, please press the one key on your touch-tone telephone.  If your question has been answered and you wish to remove yourself from the queue, please press the pound key.

Our first question comes from Gary Tenner from SunTrust.

GARY TENNER, SUNTRUST ROBINSON HUMPHREY:  Good morning.

HUDSON:  Good morning, Gary.

TENNER:  Bill, you mentioned expectations of margin expansion, 15 to 20 basis points potentially in the first quarter.  Is that off of the full fourth quarter margin of 3.82, so about flat to the December month?

HAHL:  Yes.  That would be correct.

TENNER:  OK.

HAHL:  Yes.

TENNER:  So that’s flat, around the four-percent level.  OK.  Thank you very much.

HUDSON:  Thank you, Gary.

OPERATOR:  Our next question comes from David Honold from KBW.

DAVID HONOLD, KBW:  Good morning.

HUDSON:  Good morning.

HONOLD:  The first question, just to follow up on the margin, how much of the improvement this quarter, Bill, would you attribute to the slowdown in MBS premium amortization, and how much to just core growth that you saw in the portfolio and maybe better asset yields?

HAHL:  It's difficult to say how much; certainly there was-- as you can see from the increase in the yield in the investment portfolio, that it did have an impact on the margin.  I think that's why you'll see -- we're seeing, at least in the model-- a slower growth in the first quarter, because we won't see the kind of expansion in the investment yields that we saw in the fourth quarter.  It'll be more driven by loan portfolio growth, as well as a continued improvement in the earning asset mix, both in the loan portfolio, as well as the investment portfolio's contribution declining as the loan portfolio grows.

HONOLD:  OK.  And then just to the follow up, the deposit growth in the quarter continued to be pretty good.  Service charges were down slightly.  Can you just comment in general on the mix shift and what you expect for deposits and service charges in 2004?

HUDSON:  Well, we think, -- this is Denny -- a lot of those numbers will continue; we'll continue to have strong growth in some of the core areas and the lower cost areas as we go into '04.  The last year, though, we've been very careful, I guess you'd say, in terms of our pricing and competitiveness for the CD portion of the portfolio.  And we've actually seen, over time, that the portfolio has had very little growth or no growth, depending on what period of time you're looking at.

And I think with the loan growth that we're anticipating over this next year, we might actually see a pickup in deposit growth occur in the year as we have more of a need to fund that loan growth.  I don't know that it's going to be dramatic this year, but I think it could be more significant out later into '05.

So I think the real story for the Company in '04 is going to be the return of loan growth, for all the reasons that we hopefully made clear in some of our comments.  For those of you that follow us, I think you can see that.  And perhaps as we approach the end of the year and trail into '05, you'll see a return of more significant balance sheet growth for the Company.  So we're looking for that to occur over the next year to 18 months.

HONOLD:  Thanks.

OPERATOR:  Our next question comes from Arielle Whitman from Sandler O’Neill.

ARIELLE WHITMAN, SANDLER O’NEILL:  Hi, gentlemen.  

HUDSON:  Good morning.

HAHL:  Good morning.

WHITMAN:  Nice job this quarter.  I'm wondering if you could just help set expectations in terms of provisioning and reserve coverage?  And I know that you haven't taken a provision for a while, but where's the thought process?

HUDSON:  As Bill said at the end of his remarks, we're clearly...

WHITMAN:  Likely to add...

HUDSON:  ... likely to add a provision in '04.  It'll probably begin to occur in the first quarter.  And as we said, it's not likely to be significant in terms of the impact on the quarter.  I have to refer you back to the charts where we show charge-offs for many, many years being almost nil.  And when you look at the growth in the portfolio, the coverage ratio continues to be extremely high-- almost six times coverage on non-performing at the end of the year.  I would also remind you that the growth that we're seeing in the portfolio is largely concentrated in secured lending-- real estate secured lending.  

We expect those trends to continue.  And that, combined with the fact that we have a very long history now, eight or nine years of extraordinary low charge-offs, suggests to us that we are adequately reserved today, and any further provisioning would be based on growth in the portfolio.  

We've been saying that for the last year, and we now believe we're at a point where we're going to see, that loan growth emerge for all the reasons we stated earlier.

WHITMAN:  So the coverage ratio is -- I mean this is where we should expect it to be at its low?

HUDSON:  Yes, I think it’s going to remain fairly stable, but I think the provisioning that'll occur in the first quarter is going to be...

WHITMAN:  What's the size of growth?

HUDSON:  ... fairly modest ...

WHITMAN:  OK.

HUDSON:  Again, if we had a high degree of certainty as exactly what the number was going to be, we'd certainly give it to you.  But, we're not quite there yet in looking at that.  But I think it's clear to us, we’re not talking about a huge number in the first quarter.  It'll be more of a real change in direction--beginning to make some provision that'll occur next year beginning in the first quarter.

WHITMAN:  Thank you.

HUDSON:  Thanks, Arielle.

OPERATOR:  Our next question comes from Chris Marinac of FIG Partners.

CHRIS MARINAC, FIG PARTNERS:  Denny, Bill, good morning.

HUDSON:  Good morning, Chris.

MARINAC:  I wanted to ask about the duration of the securities portfolio, and how you see that evolving as this year unfolds.

HAHL:  Could you repeat that, Chris?  You were a little low.  I didn't quite hear.

MARINAC:  Oh, I'm sorry.  I was asking about the securities duration and how that will evolve this year.

HAHL:  The securities duration right now, based upon current levels of forecasted prepayments that are out there, would indicate a portfolio of around two years in average life.  If we shock that up 100 basis points, we'd go out to about three-plus years, a little over that.  And after that, the portfolio does not really extend to any great degree.  Of course, duration is a little bit lower than those numbers because of the principal prepayments coming back.  So on a duration basis, we're probably less than two years based upon current forecasts; and up 100, we're probably less than three.  

MARINAC:  OK.

HUDSON:  So it's still a very, very short portfolio, as Bill indicated.  And we again believe we've made a pretty fundamental change in our long-term interest rate risk profile, given the mix change that's occurred over the last year in the loan portfolio and the anticipated drivers of loan growth as we look out over the next year.  

We think we're in a pretty good position to comfortably get through what could be an increasing rate environment as we close in on the end of '04.

MARINAC:  Denny, if rates do not move for several months, to what extent does that create any near-term issue for you or would you label this more of a win-win?

HUDSON:  Well I would say if rates remain flat for the next quarter-- that's our forecast for ALCO-- that we will continue to see the overall margin expanding.  And, it's a positive thing.  Actually we see the margin expanding to a greater extent in a slowly rising interest rate environment.

MARINAC:  OK.  And then the follow-up question is on balance sheet leverage -- as you grow this year, will the overall balance sheet -- I mean will the leverage be any different in terms of your plan?

HUDSON:  No.  I mean the growth is not going to be balance sheet growth.  Remember we've been talking about loan growth, which has been pretty exciting around here this quarter and all year really -- and going forward, those trends will likely continue.  But whether it translates into overall balance sheet growth I think is another matter.  As I said earlier, as we close in on the end of the year, we might see some leveraging occurring in the balance sheet, but it's not going to be significant.  

I think we still have, Chris, capacity to get into the market and buy shares.  We have a need to do that, and we'll probably do a little bit of that this year, but probably not a significant amount of it.  So I think that's just not an issue in terms of balance sheet -- additional balance sheet leverage.  I think, if anything, we'll be challenged to leverage it further as the year goes on.  But out beyond this year, again, as I said earlier, we'll see some balance sheet growth, which I think would bring back some leverage.  In the meantime, I think we have the capacity to do buy-backs.  We haven't done a lot of it this last year, and we'll probably do a similar small amount of it as we roll into '04.

MARINAC (ph):  Great, guys.  That's helpful.  Thanks very much.

HUDSON:  Thank you.

OPERATOR:  We have a follow up question from David Honold from KBW.  

HONOLD:  Thanks.  Yes, just on the balance sheet growth, I noticed for the first time in a couple of quarters, 1-4 balances actually increased.  Can you give us a sense of where you'd like to see 1-4s relative to the overall portfolio, and maybe if anything has changed in terms of what you guys are willing to take and put on a balance sheet?  Thanks.

HUDSON:  Yes, good question.  About two years ago we hit the high point -- we had a loan mix that resulted in 1-4s being over 50 percent.  In fact, we have a slide up, the second slide on our website, that shows that.  In fact, it hit 60 percent in 1999.  That number, at year end, came down to 28 percent.  And really our goal is to keep 1-4s at about a third -- 33 percent.  We're a little under our goal right now.  I feel very comfortable where we are -- 28 percent.  But, you know, we might see that grow a little bit throughout the year, depending on the rate environment.  But it'll be modest growth, single digit, and again, the overall goal is around a third.

In terms of commenting on what's going into the portfolio right now, it's exclusively adjustable rate product and fixed-to-adjustable type product, very short duration.  We're not booking any any substantial amount of any fixed rate product into the portfolio, and we intend to continue that trend out indefinitely.

Bill, I don't know if you have any other...

HAHL:  No, that's precisely what the expansion was.  If you recall, when yield curve changed back in June or so and rates went up higher than they are even relative to today, a lot of applications came in that were -- people flipped over to fixed-to-adjustable and adjustable rates.  And that's what we saw closing and booking in the fourth quarter.  That's why our mortgage banking revenues in the fourth quarter were lower, as I'd indicated.  Does that answer your question, David?

HOLLAND:  Absolutely.  Thank you.  

OPERATOR:  There are no further questions at this time.

HUDSON:  OK.  Well we appreciate your attendance today, and as always, feel free to give Bill or me a call should any of you have any additional questions.  We appreciate your attendance and look forward to reporting continued success as we close out the first quarter of '04.  Thank you very much.

OPERATOR:  Ladies and gentlemen, thank you for participation in today's conference.  This does conclude today's call.  You may now disconnect.  

END

10

EX-3

Exhibit 99.3

Seacoast Banking Corporation of Florida

Loans Outstanding

(percent of total outstandings)

	1999	2000	2001	2002	M-03	J-03	S-03	D-03
Consumer	12%	18%	21%	23%	21%	21%	21%	21%
Commercial	28%	31%	35%	42%	45%	46%	50%	51%
Residential	60%	51%	44%	35%	34%	33%	29%	28%
Total Loans (in millions)	$ 778	$ 845	$ 785	$ 688	$ 662	$ 651	$666	$ 709

Deposit Growth

(in millions)

	Dec-02	Mar-03	Jun-03	Sep-03	3-Dec	% Growth
NOW & Savings	$473	$491	$497	$512	$528	11.60%
Time	$373	$364	$372	$358	$369
DDA	$185	$196	$205	$211	$233	26.30%
Total Deposits						9.60%

Non-performing Assets (NPAs)/ Total Assets

	FY1998	FY1999	FY2000	FY2001	FY2002	FY2003
Seacoast	0.25%	0.25%	0.21%	0.21%	0.18%	0.22%
FL Community Banks	0.53%	0.50%	0.88%	0.30%	0.30%	0.45%

Net Charge-off Ratio

	FY1997	FY1998	FY1999	FY2000	FY2001	FY2002	FY2003
Seacoast	0.21%	0.11%	0.02%	0.03%	0.02%	0.03%	0.10%
FL Community Banks	0.26%	0.27%	0.25%	0.26%	0.36%	0.37%	0.22%

Loan Loss Reserves/ Nonperforming Loans

	FY1998	FY1999	FY2000	FY2001	FY2002	FY2003
Seacoast	262.32%	285.42%	343.88%	290.30%	304.60%	565.00%
FL Community Banks	172.58%	181.94%	146.98%	213.49%	203.12%	206.62%

Loan Portfolio Compostion

	Q1-2003	Q2-2003	Q3-2003	Q4-2003
Real Estate Construction	$84.8	$83.9	$93.5	$107.3
Residential Real Estate	216.6	202.4	188.6	199.5
Commercial Real Estate	235.9	242.1	260.9	270.9
Installment Loans	82.0	79.3	78.9	84.5
C&I	41.8	43	41.9	46.3