EX-99.3 4 exhibit993to8k.htm Exhibit 99

EXHIBIT 99.3

To 8-K dated July 25, 2006




Seacoast Banking Corporation of Florida

Second Quarter 2006 Financial Highlights



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 the benefits of the integration and consolidation of Seacoast with Big Lake and Century, including future financial and operating results, cost savings, enhanced revenues, and accretion to reported earnings that may be realized from the mergers, as well as statements with respect to Seacoast, Big Lake and Century’s plans, 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 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, securities, 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 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 of Seacoast, Big Lake and Century 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 Big Lake and Century’s customers by competitors; as well as the difficulties and risks inherent with entering the Central Florida market.


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, 2005 under “Special Cautionary Notice Regarding Forward-Looking Statements,” and otherwise in our SEC reports and filings.  Such reports are available upon request from Seacoast, or from the Securities and Exchange Commission, including through the SEC’s Internet website at http://www.sec.gov.





Total Revenues Increase


Noninterest income rose 8.1% linked quarter unannualized excluding Big Lake revenues and 22.9% including Big Lake revenues.


(Dollars in thousands)

QTR2 06

QTR2 05

Growth

% Growth

Net Interest Income

$ 24,030

$ 17,867

$ 6,163

34.5

%

Noninterest Income

6,519

5,339

1,180

22.1

 

Total Revenues

$ 30,549

$ 23,206

$ 7,343

31.6

%


Dollars in Thousands; Excludes provision for Loan Losses, Interest Rate Swap Profits (Losses), and Securities Gains (Losses) Calculated on a Fully Taxable Equivalent Basis




Overhead Ratio


 

Q2-04

Q3-04

Q4-04

Overhead Ratio

65.1%

65.6%

65.0%


 

Q1-05

Q2-05

Q3-05

Q4-05

Overhead Ratio

65.4%

62.1%

62.5%

62.1%


 

Q1-06

Q2-06

Overhead Ratio

62.5%

61.1%



Noninterest Income Excludes Security Gains (Losses) and Interest Rate Swap Profits (Losses)

Noninterest Expense Excludes Merger/Nonrecurring Charges and Non-cash Core Deposit Intangible Amortization

Net Interest Income is included on a Tax Equivalent Basis




Loan Growth


Loan Growth Remains Strong at a 22.9% Growth Rate Year over Year, Excluding Big Lake Loans of $203 Million



(Dollars in thousands)

Q2-2005

Q3-2005

Q4-2005

Q1-2006

Q2-2006

Loans, net of unearned income

$ 1,148,373

$ 1,217,919

$ 1,289,995

$1,339,070

$1,614,646





Commercial Lending Originations



(Dollars in thousands)

Q2-2005

Q3-2005

Q4-2005

Q1-2006

Q2006

Commercial Originations*

$ 119,000

$ 125,000

$ 112,000

$ 117,000

$ 106,000


*  Includes Commercial Real Estate





Deposit Performance


Deposits Flat Over Last Twelve Months, Excluding Big Lake Deposits of $274 Million


(Dollars in thousands)

Q2-2005

Q2-2006

Total Deposits

$ 1,743,895

$ 2,028,605





Deposit Mix


 

QTR4 05

 

QTR1 06

 

QTR1 06

 

Demand

27

%

24

%

24

%

Core *

63

 

65

 

65

 

Time Deposits > $100,000

10

 

11

 

11

 

Total

100

%

100

%

100

%


*Includes Time Deposits < $100,000





Cost of Deposits


 

Q3-04

Q4-04

Q1-05

Q2-05

Q3-05

Fed Funds Rate

1.75%

2.25%

2.75%

3.25%

3.75%

Cost of Deposits

1.02%

1.03%

1.09%

1.18%

1.32%

      
 

Q4-05

Q1-06

Q2-06

  

Fed Funds Rate

4.25%

4.75%

5.25%

  

Cost of Deposits

1.54%

1.71%

1.99%

  






Average Earning Asset Growth


(Dollars in billions)

Q4-04

Q1-05

Q2-05

Q3-05

Q4-05

Average Earning Assets

$1.45

$1.59

$1.83

$1.89

$1.97



(Dollars in billions)

Q1-06

Q2-06

Average Earning Assets

$1.98

$2.25


Average loans represent 71% of earning assets at June 30, 2006, compared to 63% at December 31, 2005 and 60% at December 31, 2004





Prime Based Loans


(Dollars in thousands)

Q2-05

Q3-05

Q4-05

Q1-06

Q2-06

Prime Based Loans

$355,000

$390,000

$416,000

$426,000

$496,000






Total Floating Rate Assets


Floating Rate Assets (Loans, Investments, and Overnight Funds)


 (Dollars in thousands)

Q2-05

Q3-05

Q4-05

Q1-06

Q2-06

Ending Floating Rate Assets

$ 582,000

$ 617,000

$ 677,000

$ 631,749

$ 643,625

Prime Rate

6.25%

6.75%

7.25%

7.75%

8.25%





Net Interest Margin and Net Interest Income


(Dollars in thousands)

Q2-05

Q3-05

Q4-05

Q1-06

Q2-05

Net Interest Margin

3.91%

4.01%

4.04%

4.16%

4.29%

Net Interest Income

$ 17,867

$ 19,091

$ 20,062

$ 20,274

$ 24,030


Excludes Provision for Loan Losses; Calculated on a Fully Taxable Equivalent Basis using Amortized Cost





Service Area


Seminole County

Orange County

Brevard County

Indian River County

Okeechobee County

St. Lucie County

Martin County

Palm Beach County

Hardee County

Highlands County

Desoto County

Glades County

Hendry County