8-K

8-K – page # of 5

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)        April 30, 2007 (April 25, 2007)

    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)

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

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 (see General Instruction A.2.)

¨

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

¨

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

¨

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

¨

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

8-K – page # of 5

SEACOAST BANKING CORPORATION OF FLORIDA

Item 2.02

Results of Operations and Financial Condition

On April 25, 2007, the Registrant announced its financial results for the first quarter ended March 31, 2007.  

A copy of the press release announcing the Registrant’s results for the first quarter ended March 31, 2007 is attached hereto as Exhibit 99.1 and incorporated herein by reference.  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, cost savings, enhanced revenues, economic and seasonal conditions in our markets, and improvements to reported earnings that may be realized from cost controls or 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 se t 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 and regulatory changes; the risks of changes in interest rates on the level and composition of deposits, loan deman d, 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, 2006 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.

Item 7.01

Regulation FD Disclosure

On April 26, 2007, the Registrant held an investor conference call to discuss its financial results for the first quarter ended March 31, 2007.  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 Registrant’s website) 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 March 31, 2007, 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 9.01

Financial Statements and Exhibits

(c) The following exhibits are filed herewith:

Exhibit Number	Description
99.1	Press Release dated April 25, 2007 with respect to Seacoast Banking Corporation of Florida’s financial results for the first quarter ended March 31, 2007.
99.2	Transcript of Registrant’s investor conference call held on April 26, 2007 to discuss the Registrant’s financial results for the first quarter ended March 31, 2007.
99.3	Data on website containing information used in the conference call held on April 26, 2007 to discuss the Registrant’s financial results for the first quarter ended March 31, 2007.

8-K – page # of 5

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:   

April 30, 2007

By:

/s/ William R. Hahl

Name:

William R. Hahl

Title:  

Executive Vice President &

Chief Financial Officer

EX-99.1

EXHIBIT 99.1

To 8-K dated April 30, 2007

NEWS RELEASE

SEACOAST BANKING CORPORATION OF FLORIDA

Dennis S. Hudson, III

Chairman and Chief Executive Officer

Seacoast Banking Corporation of Florida

(772) 288-6086

William R. Hahl

Executive Vice President/

Chief Financial Officer

Seacoast Banking Corporation of Florida

 (772) 221-2825

SEACOAST EARNS $6.4 MILLION OR $0.34 PER SHARE

FOR THE FIRST QUARTER

STUART, FL., April 25, 2007 – Seacoast Banking Corporation of Florida (NASDAQ:  SBCF), a bank holding company whose principal subsidiary is Seacoast National Bank, reported net income totaling $6.4 million for the first quarter of 2007 compared to $5.9 million for the first quarter of 2006.  Diluted earnings per share (“DEPS”) was $0.34 for the quarter, compared to $0.34 DEPS in the first quarter of 2006.  

“We are pleased with our performance this quarter.  Our net interest margin stabilized as a result of improvements in funding and continued loan growth.  Deposit declines evident in the past two quarters reversed on improved growth in noninterest bearing balances.  We also successfully collected, without loss, a large loan placed on nonaccrual in the third quarter of 2006.  Finally, we undertook more active management of our balance sheet beginning with a repositioning of our investment portfolio that should improve our net interest margin performance and reduce interest rate volatility over the balance of the year”, said Dennis S. Hudson, III, Chairman and Chief Executive Officer of Seacoast.

Other highlights for the quarter included the following:

•

Loan growth slowed in the first quarter 2007 as a result of anticipated payoffs of residential real estate construction projects with $10 million or 2.4 percent growth annualized for the quarter.  Loan growth is expected to total 8-10 percent for the full year 2007;

•

Net interest margin for the quarter declined modestly by 3 basis points to 3.92 percent compared to the fourth quarter 2006;

•

Average earning assets increased $223 million to $2.2 billion over the last twelve months;

•

Deposit mix remained good with noninterest bearing deposits increasing $9.3 million during the quarter and now representing 21.2 percent of total deposits;

•

A team was developed to manage loan syndications to assist in lowering concentrations and to increase loan production; and

•

The Company commenced a marketing campaign in the first quarter to take advantage of potential market disruptions with the integration and rebranding by two of the Company’s largest local Treasure Coast competitors to a large Ohio-based institution;

Nonperforming assets declined from $12.5 million or 0.72 percent of loans and other real estate owned at year-end 2006 to $4.1 million or 0.23 percent at quarter end 2007.  The decline is primarily related to the collection in full of an $8 million nonaccrual loan which was reported as impaired at year-end with a specific valuation allowance of over $1 million.  The collection of this credit and reduction in the specific allowance resulted in a recapture of $550,000 or $0.02 DEPS for the quarter.  

The Company expects future provisioning to be closely aligned with loan growth for the following reasons: credit quality remains strong despite slowing residential real estate markets; the Company increased the allowance in the fourth quarter of 2006 for risks then identified with a change in market conditions effecting Florida real estate; and other risks affecting the Company’s model for calculating the allowance were moved to more conservative ranges based on a continuation of market conditions during the first quarter.

The Company elected to early adopt Financial Accounting Standards (FAS) 157 and 159 in the first quarter of 2007.  Under the transition provisions of FAS 159, approximately $251 million of investment securities were selected to be reported beginning January 1, 2007 at fair value with the effect of the remeasurement to fair value at this date as a cumulative-effect adjustment to the opening balance of retained earnings and the changes to fair value after that date as a component of current earnings reflected in the income statement.  A total of $365,000, net of tax, or $0.02 DEPS was reported as trading account profits for the first quarter 2007.    The cumulative-effect adjustment reduced opening retained earnings by $3.7 million.  “The elective use of fair value accounting for financial instruments enabl es us to better align the financial results of those items with their economic value and allows for more active management of our balance sheet,” commented Dennis S. Hudson, III, Chairman and Chief Executive Officer of Seacoast.

Operating revenues (fully tax equivalent) grew in the first quarter 2007, up $2.1 million or 8.1 percent from the prior year, primarily as a result of the acquisition of Big Lake National Bank in the second quarter 2006.  Compared to the fourth quarter, operating revenues were up $83,000 with improvement in noninterest income of $497,000 or 8.7 percent with increased fees from mortgage banking activities, marine finance, and wealth management services offset by a decrease in net interest income.

The net interest margin for the first quarter 2007 was 3.92 percent, representing a 3 basis point decline from the 3.95 percent achieved during the fourth quarter, and a much smaller decline than 27 basis points that occurred during the fourth quarter 2006.  The smaller decline in the net interest margin resulted primarily from a modest increase in the cost for interest bearing liabilities, combined with an increase in the yield on earning assets.  In addition, the margin was negatively impacted last quarter by seasonal increases in public fund customer balances that produce spreads of less than 1.0 percent.

The cost for interest bearing deposits increased 15 basis points to 3.40 percent from 3.25 percent in the fourth quarter 2006 and was lower than the 30 basis points increase in the fourth quarter 2006 from the 2.95 percent for the third quarter.  The cost of interest bearing liabilities increased by 22 basis points for the quarter, but only increased by one basis point in the month of March 2007.  The lower increase in rates during March 2007 for interest bearing liabilities was attributed to a better mix of deposits, as noninterest bearing deposits and lower cost savings deposits increased more than higher cost time deposits and average overnight borrowings were lower during the month.  Time deposit pricing improved during the first quarter with fewer competitors paying above market rates.  The average rate for time de posits increased 19 basis points for the first quarter 2007, compared to 34 basis points in the fourth quarter 2006.

Net interest income on a tax equivalent basis for the first quarter declined $414,000 or 1.9 percent from the fourth quarter, but was up $1.2 million or 5.7 percent when compared to first quarter 2006.  Net interest income and the margin for the remainder of the year will increase from the impact of the balance sheet management decisions discussed earlier in this release related to the adoption of FAS 159.  The balance sheet restructuring discussed earlier related to the $251 million in investment securities will increase net interest income in the range of $550,000 to $800,000 per quarter, but the ultimate effects will depend on decisions in the second quarter and beyond.  The pressure on the net interest margin, after the effects of the balance sheet management activities, are likely to remain due to inversion of the yield curve and slower noninterest bearing deposit growth compressing interest spreads on earning assets.  The Company believes that the margin will improve in the latter half of 2007, provided loan growth reaches targeted levels of 8 to 10 percent for the year.

Average loans for the first quarter 2007 increased 2.9 percent, or 11.6 percent linked quarter annualized compared to the fourth quarter 2006.  The increase in loans was the result of organic growth in the Company’s markets over the last 12 months.  The impact of a slower housing market has impacted the Company’s loan pipelines, and it is believed that slower loan growth will result for the remainder of 2007.  The Company’s expansion into Broward County with a loan production office opening in the first quarter 2007, and acquisition of additional loan officers for the Treasure Coast and Big Lake markets, should result in greater loan opportunities. In addition, the integration and rebranding of the Company’s two largest community bank competitors by a large Cleveland, Ohio based bank in March and April 20 07 has improved the Company’s prospects for loan and deposit growth in the second half of 2007.

Noninterest income, excluding securities gains (losses) and fair value changes for the first quarter, increased as a result of better revenues from debit card interchange fees, merchant income, and much improved mortgage banking gains, as well as increased fees from service charges on deposit accounts as a result of the acquisition of Big Lake National Bank, compared to first quarter 2006.  During the past several quarters, noninterest income related to mortgage loan production has been lower due to more production being retained in the loan portfolio.  With the Company’s expanded market presence, production in the first quarter increased fee income, which also benefited from a pick-up in mortgage refinancing activities.  In addition, the pricing on products sold was improved during the first quarter and accounted for s ome of the increase in fee income.   The Company expects that fee income from mortgage banking activities will continue to be challenged due to a slower housing market, but some of this weakness may be offset by higher production related to refinance activities and expanded market share.  While marine finance fees were slightly lower in the first quarter compared to the prior year, production was very good, and the Company retained more loans in its portfolio during the first three months this year than in the prior year’s comparable period.  For the total year 2006, the marine finance business was muted due to prior years’ hurricanes, higher fuel prices and insurance costs.  Recent events, including record crowds at first quarter boat shows, suggest that 2007 may be a much better year in comparison.

Noninterest expenses in the first quarter of $18.7 million were in line with management expectations and guidance provided in the fourth quarter earnings release.  Noninterest expenses for the quarter included added spending related to the opening of a loan production office in Broward County, a new branch in Brevard County, and several loan officer hires in the Treasure Coast, Palm Beach County and Big Lake markets.  It is forecasted that these overhead additions will have positive revenue offsets beginning as early as the third quarter of 2007.  The Company has completed its review of its processes, operations and costs.  Based on this review, the Company believes that its target for quarterly overhead to remain relatively flat in 2007 when compared to 2006, after adjusting for the acquisition completed in the second quarter of 2006, is achievable.  Salary expenses directly related to revenue growth could result in quarterly increases above this target for 2007.  In addition, higher marketing costs for the second quarter (and if successful, for the third quarter as well) are expected as a result of the opportunities for expanded growth in both loans and deposits related to the integration and rebranding of the Company’s two largest community bank competitors.

The Company has maintained strong and consistent credit quality and low net charge-offs over the long term, and its net charge-offs have consistently been much better than peers.  Net charge-offs totaled $125,000 in the first quarter 2007, compared to net recoveries of $80,000 a year ago.  The Company’s largest nonaccrual loan at quarter-end totaled $3.0 million and is well secured.  The Company does not expect to incur any principal loss as a result of the ultimate collection of this credit.   

Seacoast will host a conference call on Thursday, April 26 at 10:00 a.m. (Eastern Time) to discuss the earnings results and business trends.  Investors may call in (toll-free) by dialing (800) 640-9765 (access code: 17448512; leader: 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 beginning the afternoon of April 26 by dialing (877) 213-9653 (domestic), using the passcode 17448512.

Seacoast, with approximately $2.4 billion of assets, is one of the largest independent commercial banking organizations in Florida.  Seacoast has 43 offices in South and Central Florida and is headquartered on Florida’s Treasure Coast, which is one of the wealthiest and fastest growing areas in the nation.

- continued -

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, 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 and regulatory changes; the risks of changes in interest rates on the level and composition of de posits, loan demand, 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 mor e 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, 2006 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.

- continued -

FINANCIAL HIGHLIGHTS	(Unaudited)
SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES
						Three Months Ended
(Dollars in thousands,						March 31,
except per share data)						2007			2006
Summary of Earnings
Net income				$		6,427	$		5,866
Net interest income (1)				$		21,432	$		20,274
									< /TD>
Performance Ratios
Return on average assets  (2), (3)						1.10	%		1.13	%
Return on average tangible assets (2),(3),(4)						1.16			1.16	%
Return on average shareholders' equity  (2), (3)						11.97			14.98
Return on average tangible shareholders’ equity (2),(3),(4)						16.74			19.25
Net interest margin  (1), (2)						3.92			4.16
Per Share Data
Net income diluted				$		0.34	$		0.34
Net income basic				$		0.34	$		0.35
Cash dividends declared						0.16			0.15
			March 31,					Increase/
			2007		2006				(Decrease)
Credit Analysis										&nb sp;
Net charge-offs (recoveries) year-to-date		$	125	$	(80)				n/m
Net charge-offs (recoveries) to average loans			0.03	%	(0.02)		%		n/m
Loan loss provision year-to-date		$	(550)	$	280				n/m
Allowance to loans at end of period			0.82	%	0.70		%		17.1	%
Nonperforming assets		$	4,088	$	240				1,603.3
Nonperforming assets to loans and other real estate owned at end of period			0.23	%	0.02		%		1,050.0
									< /TD>
Selected Financial Data
Total assets		$	2,400,428	$	2,133,152				12.5
Securities – Trading  (at fair value)			250,992		0				n/m
Securities – Available for sale (at fair value)			131,997		371,186				(64.4)
Securities – Held for investment (at amortized cost)			35,746		145,507				(75.4)
Net loans			1,729,054		1,329,704				30.0
Deposits			1,889,580		1,804,490				4.7
Shareholders' equity			216,741		155,609				39.3
Book value per share			11.34		9.09				24.8
Tangible book value per share			8.33		7.14				16.6
Average shareholders' equity to average assets			9.15	%	7.52		%		21.7
Average Balances (Year-to-Date)
Total assets		$	2,379,739	$	2,112,876				12.6
Less:  Intangible assets			57,213		33,604				70.3
Total average tangible assets		$	2,322,526	$	2,079,272				11.7
Total equity		$	217,834	$	158,787				37.2
Less:  Intangible assets			57,213		33,604				70.3
Total average tangible equity		$	160,621	$	125,183				28.3
									< /TD>

 (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) The Company believes that cash operating earnings excluding the impacts of noncash amortization expense on intangible assets is a better measurement of the Company’s trend in earnings growth.

n/m = not meaningful

CONDENSED CONSOLIDATED STATEMENTS OF INCOME  (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

		Three months Ended
		March 31,
(Dollars in thousands, except per share data)		2007		2006
Interest on securities:
Taxable	$	4,739	$	5,397
Nontaxable		93		15
Interest and fees on loans		32,550		23,011
Interest on federal funds sold and other Investments		251		1,335
Total Interest Income		37,633		29,758
Interest on deposits		5,562		3,339
Interest on time certificates		6,768		4,092
Interest on borrowed money		3,935		2,078
Total Interest Expense		16,265		9,509
Net Interest Income		21,368		20,249
Provision for loan losses		(550)		280
Net Interest Income After Provision for Loan Losses		21,918		19,969
Noninterest income:
Service charges on deposit accounts		1,733		1,242
Trust income		627		712
Mortgage banking fees		455		209
Brokerage commissions and fees		754		776
Marine finance fees		726		793
Debit card income		568		463
Other deposit based EFT fees		131		97
Merchant income		756		679
Trading account profits		561		0
Other		466		333
		6,777		5,304
Securities gains (losses), net		(2)		11
Total Noninterest Income		6,775		5,315
Noninterest expenses:
Salaries and wages		7,896		6,419
Employee benefits		1,687		1,800
Outsourced data processing costs		1,945		1,749
Occupancy		1,874		1,533
Furniture and equipment		652		536
Marketing		700		917
Legal and professional fees		832		537
FDIC assessments		58		59
Amortization of intangibles		315		119
Other		2,744		2,440
Total Noninterest Expenses		18,703		16,109
Income Before Income Taxes		9,990		9,175
Provision for income taxes		3,563		3,309
Net Income	$	6,427	$	5,866
Per share common stock:
Net income diluted	$	0.34	$	0.34
Net income basic		0.34		0.35
Cash dividends declared		0.16		0.15
Average diluted shares outstanding		19,154,881		17,287,693
Average basic shares outstanding		18,960,154		16,913,335

CONDENSED CONSOLIDATED BALANCE SHEETS  (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
		March 31,			December 31,			March 31,
(Dollars in thousands)			2007		2006				2006
Assets
Cash and due from banks	$		98,319	$		89,803	$		73,500
Federal funds sold and other investments			1,507			2,412			119,374
Total Cash and Cash Equivalents			99,826			92,215			192,874
Securities:
Trading (at fair value)			250,992			0			0
Available for sale (at fair value)			131,997			313,983			371,186
Held for investment (at amortized cost)			35,746			129,958			145,507
Total Securities			418,735			443,941			516,693
Loans available for sale			7,662			5,888			4,791
Loans, net of unearned income			1,743,294			1,733,111			1,339,070
Less: Allowance for loan losses			(14,240)			(14,915)			(9,366)
Net Loans			1,729,054			1,718,196			1,329,704
Bank premises and equipment, net			37,825			37,070			25,468
Other real estate owned			133			0			0
Goodwill and other intangible assets			57,489			57,299			33,402
Other assets			49,704			34,826			30,220
	$		2,400,428	$		2,389,435	$		2,133,152
Liabilities and Shareholders’ Equity
Liabilities
Deposits
Demand deposits (noninterest bearing)	$		401,123	$		391,805	$		441,139
Savings deposits			897,025			929,444			894,158
Other time deposits			331,739			325,251			276,216
Time certificates of $100,000 or more			259,693			244,518			192,977
Total Deposits			1,889,580			1,891,018			1,804,490
Federal funds purchased and securities sold under agreements to repurchase, maturing within 30 days			212,773			206,476			93,732
Borrowed funds			26,601			26,522			26,324
Subordinated debt			41,238			41,238			41,238
Other liabilities			13,495			11,756			11,759
			2,183,687			2,177,010			1,977,543
Shareholders' Equity
Preferred stock			0			0			0
Common stock			1,913			1,899			1,713
Additional paid in capital			93,560			91,561			46,495
Retained earnings			124,538			124,811			115,587
Restricted stock awards			(3,290)			(3,181)			(3,446)
Treasury stock			(130)			(310)			(149)
			216,591			214,780			160,200
Accumulated comprehensive loss, net			150			(2,355)			(4,591)
Total Shareholders’ Equity			216,741			212,425			155,609
	$		2,400,428	$		2,389,435	$		2,133,152
Common Shares Outstanding			19,119,075			18,974,295			17,113,987

Note:  The balance sheet at December 31, 2006 has been derived from the audited financial statements at that date.

CONSOLIDATED QUARTERLY FINANCIAL DATA   (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
				Quarters
				2007				2006									Last 12
(Dollars in thousands, except per share data)				First			Fourth				Third		Second				Months
Net income			$	6,427	$		5,685		$		5,869	$		6,434	$		24,415
Operating Ratios
Return on average assets  (2), (3)				1.10	%		0.95		%		0.99	%		1.07	%		1.03	%
Return on average tangible assets (2),(3),(4)				1.16			1.01				1.05			1.13			1.09
Return on average shareholders' equity  (2), (3)				11.97			10.57				11.03			12.43			11.49
Return on average tangible shareholders’ equity (2),(3),(4)				16.74			14.87				15.64			17.85			16.25
Net interest margin  (1), (2)				3.92			3.95				4.22			4.29			4.10
Average equity to average assets				9.15			8.99				8.98			8.58			8.92
Credit Analysis
Net charge-offs (recoveries)			$	125		$	27			$	23	$		(76)		$	99
Net charge-offs (recoveries) to average loans				0.03	%		0.01		%		0.01	%		(0.02)	%		0.01	%
Loan loss provision			$	(550)	$		2,250		$		475	$		280	$		2,455
Allowance to loans at end of period				0.82	%		0.86		%		0.77	%		0.76	%
Nonperforming assets			$	4,088	$		12,465		$		10,437	$		588
Nonperforming assets to loans and other real estate owned at end of period				0.23	%		0.72		%		0.63	%		0.04	%
Nonaccrual loans and accruing loans 90 days or more past due to loans outstanding at end of period				0.27			0.72				0.71			0.03
Per Share Common Stock
Net income diluted	$			0.34	$		0.30		$		0.31	$		0.34	$		1.29
Net income basic				0.34			0.30				0.31			0.34			1.29
Cash dividends declared				0.16			0.16				0.15			0.15			0.62
Book value per share				11.34			11.20				10.99			10.70
Average Balances
Total assets		$		2,379,739	$		2,372,784		$		2,350,862	$		2,419,683
Less:  Intangible assets				57,213			56,230				56,945			58,252
Total average tangible assets		$		2,322,526	$		2,316,554		$		2,293,917	$		2,361,431
Total equity		$		217,834	$		213,354		$		211,024	$		207,555
Less:  Intangible assets				57,213			56,230				56,945			58,252
Total average tangible equity		$		160,621	$		157,124		$		154,079	$		149,303

(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)

The Company believes that cash operating earnings excluding the impacts of noncash amortization expense on intangible assets is a better measurement of the Company’s trend in earnings growth.  

CONSOLIDATED QUARTERLY FINANCIAL DATA   (Unaudited) (continued)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

(Dollars in thousands)

SECURITIES		March 31, 2007				December 31, 2006				March 31, 2006
												< /TD>
U.S. Treasury and U. S. Government Agencies	$		53,803	$			0	$			0
Mortgage-backed			197,189				0				0
Securities – Trading			250,992				0				0
U.S. Treasury and U. S. Government Agencies			39,641				94,676				81,534
Mortgage-backed			87,676				214,661				288,058
Obligations of states and political subdivisions			2,053				2,049				0
Other securities			2,627				2,597				1,594
Securities – Available for Sale			131,997				313,983				371,186
											< /TD>
U.S. Treasury and U. S. Government Agencies			0				0				5,000
Mortgage-backed			29,378				123,587				139,313
Obligations of states and political subdivisions			6,368				6,371				1,194
Securities – Held for Investment			35,746				129,958				145,507
Total Securities	$		418,735	$			443,941	$			516,693
LOANS		March 31, 2007			December 31, 2006					March 31, 2006
Construction and land development	$		580,767	$			571,133		$		450,059
Real estate mortgage			966,488				949,824				710,396
Installment loans to individuals			83,222				83,428				77,098
Commercial and financial			112,110				128,101				101,262
Other loans			707				625				255
Total Loans	$		1,743,294	$			1,733,111		$		1,339,070

AVERAGE BALANCES, YIELDS AND RATES  (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

		2007			2006
		First Quarter			Fourth Quarter							First Quarter
		Average	Yield/				Average	Yield/				Average	Yield/
(Dollars in thousands)		Balance	Rate				Balance	Rate				Balance	Rate
Assets
Earning assets:
Securities:
Taxable	$	427,743	4.43	%		$	462,628	4.37	%	$		535,790	4.03	%
Nontaxable		8,390	6.53				8,409	6.47				1,195	7.70
Total Securities		436,133	4.47				471,037	4.40				536,985	4,04
Federal funds sold and other investments		16,284	6.25				24,872	5.33				121,592	4.45
Loans, net		1,747,797	7.52				1,698,552	7.40				1,318,291	7.08
Total Earning Assets		2,200,214	6.92				2,194,461	6.73				1,976,868	6.11
Allowance for loan losses		(14,973)					(12,842)					(9,184	)
Cash and due from banks		77,101					76,523					71,065
Premises and equipment		37,646					36,731					23,432
Other assets		79,751					77,911					50,695
	$	2,379,739		$			2,372,784		$			2,112,876
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
NOW	$	195,025	2.38	%		$	198,610	2.10	%		$	138,604	0.97	%
Savings deposits		130,985	0.71				136,410	0.71				145,094	0.51
Money market accounts		567,647	2.99				591,740	2.92				593,403	1.93
Time deposits		576,972	4.76				581,520	4.57				451,223	3.68
Federal funds purchased and other  short-term borrowings		225,805	4.95				154,065	4.68				109,206	3.80
Other borrowings		67,772	7.05				67,798	7.06				72,596	5.90
Total Interest-Bearing Liabilities		1,764,206	3.74				1,730,143	3.52				1,510,126	2.55
Demand deposits (noninterest-bearing)		387,299					415,791					434,692
Other liabilities		10,400					13,496					9,271
Total Liabilities		2,161,905					2,159,430					1,954,089
Shareholders' equity		217,834					213,354					158,787
	$	2,379,739		$			2,372,784		$			2,112,876
Interest expense as a % of earning assets			3.00	%				2.78	%				1.95	%
Net interest income as a % of earning assets			3.92					3.95					4.16

(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-99.2

EXHIBIT 99.2

To 8-K dated April 30, 2007

Seacoast Banking Corporation of Florida

First Quarter Earnings Release Conference Call

April 26, 2007

10:00 a.m. Eastern Time

Operator:

Good morning ladies and gentlemen and welcome to the First Quarter Earnings Release Conference 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 would now like to turn the call over to Mr. Dennis Hudson. Mr. Hudson, you may begin.

Dennis S. Hudson:

Thank you very much and welcome to Seacoast’s First Quarter 2007 Earnings Conference Call. Before we begin, as always, I’d like to direct your attention to the statement contained at the end of our press release regarding forward statements. During this call we are going to be discussing certain issues that constitute forward-looking statements within the meaning of the Securities and Exchange Act. Accordingly, our comments are intended to be covered within the meaning of Section 27A of the Act. As always, we have also posted a few slides on our website that we will be referring to in our comments. Feel free to visit www.seacoastbanking.net and click on Presentations at the bottom of the Investor Relations listing to view these slides as we continue on with our comments. With me today is Bill Hahl, our Chief Financial Of ficer, as well as Doug Gilbert, Vice Chairman and Chief Credit Officer. All of us will be available to answer questions following our prepared remarks.

Seacoast reported earnings of $6.4 million or $0.34 diluted per share for the quarter. As you will hear later in the call, we had a number of non-recurring and unusual items affecting this quarter, which in total added approximately $0.04 to our results, which means our operating earnings were in the range of approximately $0.30 per share. This represents comparable performance with the fourth quarter of 2006. We still face a number of factors that will continue to challenge us in the coming months, including a difficult interest rate environment and a less than robust residential real estate market.  But this quarter we saw a number of hopeful signs that things may be improving. We have also been hard at work on a number of initiatives that are designed to help us take advantage of the current market conditions, as well as recent d isruptions due to the acquisition of two of our most significant competitors in the Treasure Coast and Palm Beach County markets, more on these initiatives later in the call.

The big news this quarter was the collection, in full, of our largest nonperforming loan. The resolution of this credit occurred towards the end of the quarter. As you may recall, we transferred this loan, which was a C&I loan secured with inventory, to nonperforming status during the third quarter of last year. And then in the final quarter of last year, we substantially increased a specific impairment reserve against this credit. We are pleased to report that this credit was collected in full this quarter resulting in a substantial decline in the level of our nonperforming loans. Nonperforming assets at the end of the current quarter remain modest, at 23 basis points, and, I might add, are well secured. We remain committed to our conservative approach to managing problem credits. This can often lead to lumpiness with nonperformers, but it is clearly the way to minimize losses. Simply put, when we see a problem, we recognize it; we work it; and we collect it.

This quarter we also saw some improvement in funding with an increase at quarter-end in noninterest bearing deposits. This produced a sequential growth in noninterest bearing deposits on an annualized basis of 9.5%. Overall, total deposits remained essentially flat. This was an improvement given the negative growth we saw during the last two quarters. We are hopeful that this could signal a bottoming-out of some of the effects of a slowing residential market and a slowing number of transactions that we have been talking about for two quarters now.

We also completed a repositioning of our investment portfolio in conjunction with the early adoption of Financial Accounting Statement 159 that was designed both to improve our net interest margin and reduce interest rate volatility over the balance of the year. Bill will be speaking to this in more detail later in the call.

Last quarter, we discussed the sale of our two largest local Treasure Coast and Palm Beach competitors to National City Corporation, headquartered in Cleveland, Ohio. This marked the initial entry into Florida by National City Corporation. Rebranding and systems conversions were completed during this quarter and so our marketing effort has gone into full swing. If you take a look at the first two slides in our presentation, pages three and four, you will again get a picture of the scope of this opportunity for Seacoast. On the Treasure Coast, no one has more offices than we do and the remaining local competitors tend to be smaller and less convenient. We are excited about our prospects and are working hard to achieve the best results possible. In fact, we have already achieved a number of visible wins both in terms of new relationships a nd in terms of talent.

Finally, we’ve been hard at work exploring other opportunities for achieving solid organic growth over the balance of the year. This quarter we opened a new office in the Space Coast, which is in Brevard County, as planned, and we established a commercial loan production branch office in Fort Lauderdale down in Broward County with an experienced lending team. As you know, we have operated a Marine lending office in Fort Lauderdale for the past six years, so the market is not altogether new to us. These opportunities, along with recent success in recruiting new talent in our Treasure Coast, Palm Beach, and Big Lake markets, should assist us in achieving our targeted 8% to 10% loan growth for 2007 in spite of the effects of a difficult market for new residential development. We will continue to seek out these expansion opportunities a nd will, if need be, invest wisely to further our growth. Now, I’d like to turn the call over to Bill Hahl who will add a few other comments about the quarter.

William R. Hahl:

Thanks Denny. I want to cover some of the highlights for this first quarter. Net interest income on a tax equivalent basis for the quarter totaled $21.4 million or approximately $400,000 below the fourth quarter and would have been flat with the fourth quarter if not for the first quarter having two less days than the fourth quarter. Net interest margin compressed by three basis points to 3.92 percent for the quarter, which was much better than we had anticipated and better than what was happening the last couple of quarters.

While loan production during the quarter was solid at $76 million, payoffs resulted in only a $10 million or a 2.4% annualized linked quarter increase. In past calls we had indicated we expected loan growth for the year to be in the high single digits and would likely experience lumpy quarter-to-quarter growth as a result of unpredictable loan pay downs, which occurred this quarter on completed residential loan projects. Loan growth could exceed our forecast as first quarter de novo expansion and loan officer hires were ahead of plans for 2007. Another area which is ahead of plan would be our loan pipeline developed by a new loan syndication team which will not only contribute to loan growth this year, but will also assist in growing noninterest income revenues from syndication and servicing fees.

Another positive for the first quarter was the more modest increase in the cost of interest-bearing liabilities. The cost of deposits increased 15 basis points on a linked quarter, down from approximately 30 basis points in each of the previous two linked quarters. A better mix of deposits, and more rational pricing with less competitors paying above markets rates, contributed to slower increase in funding costs. In fact, in March interest-bearing cost of liabilities increased only one basis point. We believe it appears that we are nearing an inflection point regarding higher funding costs, provided our competitors remain rational.

Total revenues, excluding security gains and losses in trading profits, increased $2 million or 8.1% compared to the first quarter of 2006, primarily as a result of both increases in net interest income from the prior year’s organic loan growth and from increases in noninterest income from deposit-related service fee income as a result of our acquisition of Big Lake National Bank in the second quarter last year.

And finally, the last highlight for revenues during the quarter was an increase in mortgage banking fees as a result of both better pricing on sold loans and from higher volumes due to increased refinancing activities. Due to the re-pricing of one to three-year ARMs over the next year, refi volumes may continue to be high and have a positive impact on mortgage banking fees.

I will now move on to some comments on noninterest expenses. Overall, expenses were in-line with our expectations. We were able to hire, as I indicated earlier, some key loan producers in the quarter ahead of original plan and this resulted in approximately $150,000 of one-time signing bonuses in the quarter. We believe that these overhead additions of personnel will be revenue neutral, as a result of better loan growth and fee income collected as early as the third quarter of 2007. In addition, with over $1.3 billion in community bank deposits transferring to National City in March and April, we have increased our marketing budget over the next one to two quarters and believe there will be some long-term benefits as a result, and these will add to our leading community bank deposit market share on the Treasure Coast.

Overall, deposit growth was very good in the fourth quarter and we were able to replace over $40 million of core deposits at December 31^st, 2006 from our tax, our local tax collectors.  That money has all moved out of the bank now with other deposits to finish the quarter with flat growth and, as Denny mentioned, noninterest bearing DDA balances increasing by $9.3 million, which was favorable to our deposit mix. I refer to you to some slides we have posted related to our deposit mix, growth, and costs on our website showing the trends over the last several quarters.

We have prepared a slide showing the components of the impacts on the quarter related to the full collection of the $8 million non-accrual loan on our loan loss provision. I encourage you to review this additional information. Credit quality measured by net charge-offs remain very good in the quarter totaling only $125,000. Provisioning charge to earnings was impacted by the full collection of the $8 million impaired loan that had a $1.2 million evaluation allowance associated with it. The implied provision for loan loss for the 2% annualized growth was approximately $100,000. This quarter we elected to move certain elements of our allowance model risk factors to a more conservative range given the continued uncertainty when improvements in market conditions will begin to emerge. However, we expect future provisioning to be based primari ly upon loan growth as credit risks for the existing portfolio are believed to be fully considered in the allowance at March 31, 2007.

We have posted a couple of slides with additional information regarding the adoption of FAS 157 and 159 and I refer you to those for some more detail. However, after careful review of the provisions and requirements of the Financial Accounting Standards 157 and 159, we elected to early adopt them this quarter. The company had been considering various balance sheet management strategies to deal with the current economic and balance sheet pressures, which has contributed to a lackluster net interest income growth; therefore, approximately $251 million of AFS and HTM securities was moved to a trading portfolio with selected securities traded and reinvested at higher yields and durations. Prospectively, the company anticipates a smaller securities portfolio with approximately 40% to 50% allocated to trading with fair value hedged. The estima ted annual impact would be to increase quarterly net interest income in the range of $550,000 to $800,000, depending on the final decisions which will be made during this second quarter and perhaps even beyond. With this repositioning, it is estimated the net interest margin would be positively impacted by approximately 18 basis points going forward.

I will now turn the call back to Denny for some final comments.

Dennis S. Hudson:

Thanks Bill. I’d like to end with a few comments on the residential real estate market here in Florida. If you could please turn to the final slide on page 20 of our presentation titled “Residential Market Events”. We have been studying this market for a long time and have been active participants in this market over a number of business cycles. I would suggest you print this slide out after the call and keep it for future reference. It places in perspective, I feel, the transition period we currently find ourselves in. Investor sentiment for small cap banks has turned decidedly negative over the past few quarters due, in part, to concerns over real estate exposures and the press headlines that have been awash with negative stories about the residential market. First, there were stories about slowing sales activity, then a bout growing inventory along with pricing concessions; and we have just witnessed an implosion of the sub-prime industry and are beginning to hear about rising foreclosures.

As the slide suggests, we will likely continue to hear more bad news with rising foreclosures into 2008, as option ARMs written at the peak of the cycle begin to payment adjust. But likely lost in all of this bad news will be the adjustment phase we are now beginning to see as we move forward towards equilibrium. During the first quarter of 2007, in all of Seacoast’s markets, new residential product deliveries began to decline for the first time in several years and this decline occurred just as new product closings began to improve. In some markets, like Palm Beach County, for example, for the first time in over two years we saw a meaningful decline in new product inventory. New product inventory actually declined in all of our markets in the first quarter. Certainly, it is way too soon to call this a turning point. In fact, we don ’t think we will begin to achieve meaningful equilibrium until some time next year.  But we have seen some improvement this quarter and I provided this slide that’ll hopefully help give all of us some perspective as to where we are in this cycle.

At Seacoast we have never entered the sub-prime market. We have seen no increase in residential delinquencies. We have seen no increase in residential foreclosure activities, and we have never originated, nor have we ever held in our portfolio, any option ARM product.  We do not expect the next events in the unfolding residential real estate market slow down to have any direct impact on us. Hopefully, the effects we have felt to date are now in the process of beginning to moderate. Seacoast continues to operate in some of the very best markets in America. Our markets continue to produce both strong population growth and favorable wealth demographics that are superior to the rest of Florida. Our focus and our concentration in these markets, along with a team of bankers that are fast becoming the most respected bankers in the state, w ill continue to be the foundation upon which we build real shareholder value in the coming years.

With that, we would all be pleased to take a few 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 touch-tone phone. If you wish to be removed from the queue, please press the pound sign or the hash key. If you are using a speakerphone, you may need to pick up the handset before pressing the numbers. Once again, if there are any questions, please press star then one on your touchtone phone.

Our first question comes from Joe Fenech from Sandler O’Neill; please go ahead.

Joe Fenech:

Good morning guys.

Several:

Morning Joe.

Joe Fenech:

Denny, just a quick question on expenses. Just to clarify, you’re saying in the release here that you expect expenses to be flat year-over-year excluding acquisitions. Can you remind us what the base is that you are using for expenses last year excluding the deal? Also with the projections you’ve laid out for us here, do you have a year-end target, say a fourth quarter target for the efficiency ratio?

Dennis S. Hudson:

We do not have a target for the efficiency ratio that we’ve discussed. Bill, comments on kind of…

William R. Hahl:

Yeah, Joe, last year, in the last call…. We are rolling forward our comments from the fourth quarter call where we indicated that we thought the third quarter run rate, which had the full impact of the Big Lake acquisition included, was what we were basing our 2007 guidance on, and we feel pretty good about that guidance still.  Although, we also indicated during the call that we may see some additional salary adds throughout the year, those would generally be in the revenue producing areas and we thought those would tend to offset. So kind of the base would be the third quarter, which, I believe, was around $18.7 to $18.9 million in total noninterest expenses. So annualize that and that was the base that we were coming off of on our comments. Then we had some additional expenses, as Denny mentioned: a branch opening in Brevard and an LPO down in Broward.  Those kinds of things might push it up above that a little bit.

Dennis S. Hudson:

But with the expectation that it would yield revenue improvement as well.

William R. Hahl:

Yes.

Dennis S. Hudson:

So again, the target is to achieve the annualized third quarter 2006, but we may be a little above that target, depending on how successful we are on the revenue side.

Joe Fenech:

So it sounds like you’re reiterating the guidance you provided last quarter. And then on the margin, Bill, can you take us through the decision-making process you talked about for the second quarter with respect to the securities portfolio, the repositioning there? I’m just wondering how you are able to quantify what you think the impact to the margin will be at this point. I think you said 18 basis points; and then lastly on that, is that 18 basis points kind of net of any kind of core margin compression you might see, excluding the securities portfolio repositioning?

William R. Hahl:

Yeah, the 18 basis points doesn’t…

Dennis S. Hudson:

That was a proforma number for the first quarter.

William R. Hahl:

Yeah, basically, a proforma impact on the first quarter. When you take a look at the slide, it’s probably a little more evident that that’s how it was done. Basically, the reinvestment to a slightly longer duration for a portion of the portfolio, which was about $100 million, was where we are forecasting the $550,000 to $800,000 pick up, but that’s all dependent upon what we finally decide to do in our decisioning. So it could, right now we feel comfortable with what we have done in terms of repositioning the portfolio, which is smaller by about $100+ million to $125 million, that we would overall have about $550,000 positive to the net interest income.

Joe Fenech:

Then lastly, just on the marketing line, it was down significantly linked quarter and then you talked about you’re ramping that up just with the opportunities you see with the dislocation in the market.  How should we be thinking about that line for …modeling purposes going forward?

Dennis S. Hudson:

I guess all we can say at this point is that our plans are to probably increase our spending in that area, and it won’t be blockbuster spending à la Bank Atlantic. We’re just talking about a kind of a modest increase in spending there.

William R. Hahl:

Both print and some media. We had some amount of print increase actually, over what we had been doing, in the latter part of the quarter and that’s going to continue on into the second quarter with this opportunity. It is less than any kind of like any EPS type of calculation, let’s put it that way. It’s not $200,000 or $300,000 a quarter or anything like that, but we thought we’d at least indicate that marketing was headed up.

Joe Fenech:

Thanks guys.

William R. Hahl:

Thanks Joe.

Operator:

Our next question comes from Michael Cohen from SuNOVA Capital, please go ahead.

Michael Cohen:

Hi guys. Certainly a great job on credit and I was wondering if I could get a little clarity on a couple things. I didn’t see the slide that you guys referred to on your reserve in the 21 slides that you had on your website. I didn’t know if there was something different there.  But also if you could review with me exactly the sort of the dynamics that you just talked about in terms of kind of the way the provision worked and the recovery and the mark on the recovery?

William R. Hahl:

What I was referring to was slide six.  It does actually have the also the impact of the adoption in the first quarter of 159 where we had the $561,000 pre-tax impact or around $0.02 on EPS. Kind of the way I described it here in this slide is that if you thought about the fact that the entire credit was collected whereby there was nearly a $1.2 million specific valuation allowance…

Dennis S. Hudson:

That was reversed.

William R. Hahl:

…that was reversed…it would be about a $0.04 impact; and I indicated in my comments that I thought what we would have normally provided if there wouldn’t have been anything just for loan growth, any change in any kind of credit risk, it would have been about $100,000. We believe that, again I emphasized it in the comments, that we thought that going forward, because we basically believe all of our credit risks are in the allowance on March 31, 2007, that going forward that what the provisioning would be based upon was primarily loan growth.

Dennis S. Hudson:

Said another way, we had a $1.2 million specific on that credit. The credit was collected in full. We did not reverse all of the $1.2 million or in other words, we did not recapture all of that $1.2 million. If you will, on slide six, we indicate that we made an additional adjustment to our calculations to achieve more conservative ranges due to continued concern over market conditions and the net reversal ended up being only $550,000 and, as Bill just said, if you kind of back your way through all of that, you could argue there was a fairly modest amount of provisioning related to growth.

Michael Cohen:

Essentially that would imply almost aside from the adjustment for more conservative ranges though, your loan portfolio actually did grow. So how much of that is, how much of the provision was for growth and how much of the provision was for the adjustment?

Dennis S. Hudson:

If you read slide six it suggests that it was $100,000.

Michael Cohen:

Oh, it’s 100,000 for the growth.

Dennis S. Hudson:

Right.

Michael Cohen:

So your reserves, do you think that NPAs have peaked for this cycle? Is that what you guys are saying?  Aare you guys saying that the credit cycle has turned?

Dennis S. Hudson:

No, not at all, not at all. We are saying that we collected a large unusual C&I loan this quarter and it brought our NPAs back down. Even with that loan in the mix, nonperforming assets were well under 1%. No, we’re not saying, we’re not calling a turn in the cycle. We are just saying we collected that number. What we are saying is that we fully, have fully looked, if you go back and listen to last quarter’s call, we had a pretty extensive discussion over some work we did late in the third and during the fourth quarter to evaluate all large credits in the portfolio where the repayment was in some fashion dependent upon the sale of a residential product. We booked a rather substantial increase in the allowance that quarter, in the fourth quarter, related to that review and we have booked a little more, if you will, this quarter by not taking back the entire specific provision on the credit that was paid off. So we feel like we fully recognized in the allowance, or taken into account, the market conditions we are currently in. I would say that if market conditions continue to stabilize, we don’t anticipate, at the moment, any further adjustments, if you will, to the allowance. We are suggesting and giving guidance that over the balance of this year the provisioning will be a function of loan growth and…

Michael Cohen:

Meaning that… I think I understand now. But in the context of things, how do you guys think about your allowance to your NPA ratio or your allowance to your loan portfolio in aggregate?

Dennis S. Hudson:

We think it’s adequate, really that’s the answer. We have an approach that we use to look at that and we believe it’s where it needs to be right now. We’ll just have to see how things progress over the balance of the year, but at this point we’re prepared to say that barring any unforeseens, we expect our provisioning to be relayed closely aligned with loan growth.

Michael Cohen:

Great, thank you so much.

Dennis S. Hudson:

Thank you.

Operator:

Our next question comes from Barry McCarver from Stephens Inc., please go ahead.

Dennis S. Hudson:

Thank you.

Barry McCarver:

Good morning guys.

Several:

Good morning Barry.

Barry McCarver:

Good quarter. I guess, Denny, let me just take another stab real quickly at the discussion on the reserve ratio. I think that one of the ways we are looking at it is just that given your guidance for the provision going forward, I think without question the reserves to total loans ratio is going to continue to decline slightly going forward, but reserves to nonperforming loans, that ratio will continue to increase. And maybe looking at reserves to loans is not the best way to look at it, but just with the current environment I think we’re all on a little bit of alert with the credit quality.  So I guess my question is do you agree with that’s kind of what’s going to happen?—and maybe looking at reserves to loans isn’t the best way to be looking at this right now.

Dennis S. Hudson:

That’s one way to look at it. You’ve got to look at it five or six different ways to really have an appreciation for it.  I guess we just continue to stand by what we said that we believe we fully captured over the last couple of quarters the concern over the current market conditions. And as a result, we believe it was appropriate to capture it at that time because the market really definitely has been in a period of change.  We think it was very appropriate to have done that arguably early on.  We think going forward, again barring any unforeseens or unknowns, we will continue to have a provision that’s more closely aligned to our growth, which would indicate a lower provision than we have had the last couple of quarters, unless we get better growth than we are targeting.

Barry McCarver:

And then just on the overhead addition, could you give us a little more detail on some of the people you picked up over the last quarter and what you might think the opportunity could be in the second quarter to pick up good producers?

Dennis S. Hudson:

Thanks, Jean Strickland, our Chief Operating Officer, is here and she’ll make a few comments on that.

Jean Strickland:

Good morning. Thanks Denny. We are really excited about some of the talent that we have been able to attract to the company more recently. We acquired a woman with a competitor bank down in Southern Florida who was with them for several years, actually grew up in Fort Lauderdale and is very well connected in that market, and she has attracted others that she has worked with to join her on that team for the LPO that we’ve just started there. We also were able to attract to a senior lending position in our Palm Beach market a gentleman that has over 15 years experience from SunTrust.  We are very excited about him as well. His background for all of those years, and much of his youth, was also in the Northern Palm Beach County market, where we expanded de novo several years ago now and have five branches, five retail offices, as w ell in that market. Those are two of the keys. We additionally acquired a senior loan officer for the Big Lake region as well.  He came from the West Coast of Florida, but has some experience and background in more rural markets as well as having some commercial background; so we are excited about him as well.  Doug, did you have anyone additionally?

A. Douglas Gilbert:

I think we talked about the addition in the Indian River County last quarter, an experienced lender up there in Indian River County.

Jean Strickland:

So that was, yeah. Thank you, and that was a gentleman from Harbor Federal, so we were excited about getting that person on board.  Oh, and we also have a new head of residential lending that spent many years running the production side at Barnett Banks, more recently with BB&T, and so he comes with a lot of depth and breadth in that arena.

Dennis S. Hudson:

And with that we’ll stop on the people side and take any other questions you might have.

Barry McCarver:

Oh, that’s all I had. Thanks a lot guys.

Dennis S. Hudson:

Thanks Barry.

Operator:

Our next question comes from Jennifer Thompson from Oppenheimer, please go ahead.

Jennifer Thompson:

Hi, good morning everyone. First off, can you talk a little bit about the marine finance business. I think you noted in your press release that you are feeling a little better about the outlook there. Can you just expand on that?

Dennis S. Hudson:

Doug can do that.  Before he does, I just want to make clear the problem loan we collected this quarter was not a marine finance loan. That was a C&I loan. It happened to be secured with inventory and the inventory happened to be larger boats, but it had nothing to do with that business. There were some confusion over that on some of the comments I read this morning, but, Doug, do you want to talk about our outlook there?

A. Douglas Gilbert:

Sure. You can see from the numbers we were very close to what we did in production, and we also said in our release that there were some very encouraging signs at the big boat shows in Miami and Fort Lauderdale with increased traffic. We are seeing basically that the big end of the market, the mega yachts, are still selling pretty rapidly. The lower-end, the $300,000 to $500,000, vessels have slowed fairly significantly; but we’ve added new people in Seacoast Marine also and we think the prospects are pretty good for the rest of the year. We would be very disappointed if we don’t end up with more volume by year-end than we had last year.

Dennis S. Hudson:

And just to comment on all the people issues. We believe that the market conditions we are in right now are an ideal opportunity for us to acquire some talent and to continue to grow revenues over the long-term. As I said in my comments earlier, we are going to be wise about it and careful about it, but we are not going to hesitate to spend, if we need to, to continue to grow value here.

Jennifer Thompson:

One other question. Some of your competitors are making some negative comments about the outlook for land acquisition and development loans in Florida. If you could just remind us of to the extent that you are involved or not involved in that business and how you see that lending environment overall.

Dennis S. Hudson:

I’ll confirm it’s a negative outlook for land acquisition and development loans and so forth but, Doug, do you want to make a few comments there?

A. Douglas Gilbert:

Yeah, as you can see by our balance sheet, we have about $600 million in construction land development loans and we definitely see that market slowing to a greater extent than… I don’t know when the bottom’s going to be, probably the next 12-18 months, but there is not a lot that we can say positively about that.

Dennis S. Hudson:

And just to clarify the $600 million is all construction and development loans. That would include industrial. It is a very diverse portfolio, including individual residential construction loans and the like.  But to answer your question, we do have exposure to land loans and land development loans. We try to monitor that exposure extremely carefully and the key is in the underwriting of those loans as we make decisions around credit acceptance. The key is in monitoring and working with those borrowers, making sure you have the right collateral position, and making sure that you have strong guarantors on those kinds of credit to back-up that risk significantly.  That is something we have focused on for many years and, again, if we had something to say about it, we would.

Jennifer Thompson:

Can you give any more specific numbers in terms of what the exposure would be specifically to land?

Dennis S. Hudson:

In our 10-Qs and Ks, we have a pretty good description of that and I’d refer you to that. There’s a pretty lengthy listing of what makes up that portfolio and you can see that; and I don’t have it right in front of me.

Jennifer Thompson:

Okay, great, thank you.

Dennis S. Hudson:

Thanks.

Operator:

Our next question comes from Tom Goggins from Fontana Capital; please go ahead.

Tom Goggins:

Hey Denny, nice quarter. Can you just comment on the deposit pricing outlook, especially in light of Nat City’s conversion of FFFL and Harbor?

Dennis S. Hudson:

Right.  Bill, any comments there?

William R. Hahl:

Yeah, I think I indicated that there was a lot… the pricing was much better this quarter than it had been, particularly in the latter half of the last year. Nat City seems to be basically more rational in their pricing than Harbor and Fidelity were. We are not seeing the same kinds of above market pricing.  When I say rational, there would be times when they would need, I think, the funding and they would actually raise their rates that they raised a week ago because they apparently weren’t getting enough volume. That was pretty much not evident at all during the quarter, so we saw, particularly CD rates, come down a little bit to a level that was more like the rest of the country and some other markets and so forth. So we did, we benefited from that. So I think, I’m optimistic that it looks like we may, as I indicate d, have reached some sort of inflection point on the rise of the cost of deposits provided that remains the case—that our competitors remain rational here.

Dennis S. Hudson:

It is probably too early to call it an inflection point, but for sure we’ve achieved a little more equilibrium than we have had in the last couple of quarters. A lot of that could be driven, admittedly, by the time of year. We are in our season right now in Florida. We have lots of tourists and the like and it tends to push up our business relationships as well as consumer relationships. As Bill said earlier, so far with National City I think the cash has come from…been flowing from Cleveland to Florida as opposed to the opposite.  It will probably happen over the long-term.

Tom Goggins:

Okay, thanks.

Operator:

Our next question comes from David Bishop from Stifel Nicolaus, please go ahead.

David Bishop:

Thanks, good morning gentlemen.

Dennis S. Hudson:

Good morning Dave.

David Bishop:

Hey Bill, I was wondering on page seven of the presentation, the balance sheet impact of FAS 157 and 159, if I am looking at it incorrectly.  Is that on a proforma basis?  Because when I look at the securities balance in the release, you have $418 million and I’m showing that $318 million.  Is that implying that this was post-quarter sale with some of those trading securities?

William R. Hahl:

Correct. Yeah, that would be. Probably I shouldn’t have labeled that as March 31—other than a proforma. Right, that is probably a 10-day to a two week period after quarter-end where we actually move things around.

David Bishop:

So that…

Dennis S. Hudson:

But that’s a proforma March 31 number.

William R. Hahl:

Yeah, right.

David Bishop:

Okay so that…

Dennis S. Hudson:

And a key point to that is part when the smoke cleared on that, we reduced our leverage a little bit, so you saw overnight funding going back down. Actually we had Fed Funds sold after that was completed.  So that was an unwinding, if you will, of a little bit of leverage, a small amount of leverage that accumulated on the balance sheet over the last couple of quarters, and obviously that leverage probably had a negative spread associated with it. So that, combined with some of the repositioning, is what is driving the anticipated improvement in margin as we go forward.

David Bishop:

Having said that, I’m just looking at the… in the past obviously the securities portfolio has been a source of liquidity. It has helped fund some loan growth, and I realize with the slow down there maybe less need of that, but how should we think about the balances, the remaining portfolio in terms of funding future loan growth? Is that going to be more heavily weighted toward external funding or does that impact your pricing mechanisms there? Can you be less aggressive in terms of maybe fixing some of the commercial real estate loans you are putting on the books?

William R. Hahl:

I don’t believe that to be the case, but we have lowered the portfolio to a level that is slightly above what we need for pledging purposes for both our trust relationships, our repos with our customers and public funds. So the liquidity…there isn’t going to be a lot of liquidity in the portfolio for future loan growth; and I think you’re absolutely correct that going forward, as we have been saying, we thought loan growth would be slower in the high single digits.  So we are comfortable with going forward and, as Denny mentioned, that net overnight borrowings really left us with $50-$80 million in Fed Funds sold. So we have some liquidity right now for loan funding.

David Bishop:

Great, thanks.

Operator:

Our next question comes from Brett Villaume from Fig Partners; please go ahead.

Brett Villaume:

Good morning gentlemen.

Several:

Morning.

Brett Villaume:

I was just wondering, this is sort of a follow-up to the land development question:  I was under the impression that the housing inventories have a North/South effect and as you get further south you get higher in inventories. Would you mind commenting on whether or not I’m off on that or is it more of select footprint? Secondly, give us an update on your branch expansion plans.

Dennis S. Hudson:

Just to be clear, you said you had always thought that the inventory problem was sort of worse to the South?

Brett Villaume:

Yes.

Dennis S. Hudson:

And better to the North?

Brett Villaume:

Yes.

William R. Hahl:

And where is the middle?

Brett Villaume:

Where is the middle? Let’s say…

(Cross Talk)

William R. Hahl:

Is it in Orlando or…

Brett Villaume:

…my impression was starting out in Palm Beach and Martin County and stuff.

Dennis S. Hudson:

I guess the only comment that I would make is that probably of all the markets we are operating in, probably the most solid market right now is Palm Beach County where inventories have come down pretty nicely. I’m talking about new product. Probably the most challenged market is St. Lucie County to the north of us with fairly high levels of unsold inventory. But as I said in the opening, those numbers have started to come down this quarter.  It remains to be seen where they’re going to go over the balance of the year, but we have seen some reversal of trend for the first time since this slow down occurred.

Jean Strickland:

If I could just jump in and say that what is important for institutions to be doing is to be analyzing the markets and the sub-markets and we have a process in place to do that. We have an in-house appraiser who is an MAI, was the chief appraiser for Barnett Banks in his history, and is doing that work for us on a quarterly basis. So we are looking at our markets prospectively and trying to target our efforts where we see a need within the sub-markets by geography and product type, and the demand is looking like it’s there.

Dennis S. Hudson:

Does that answer your question?

Brett Villaume:

Yes, I guess.  I meant to exclude Orlando and okay…  So yeah, thank you very much and if you wouldn’t mind also giving us sort of an update, if there is any, on what your expansion plans might be going forward?

Dennis S. Hudson:

No more offices this year until what, Doug, as early as late in the year…

A. Douglas Gilbert:

Late in the year, we won’t even know…

Dennis S. Hudson:

…in Brevard County—the second office up in Brevard we’d be opening. Beyond that we’re getting pretty speculative into ’08. We have a number of locations we’re looking at, but we will probably have more on that later, give you an update a little later in the year.

William R. Hahl:

Later on though, we have the loan production office down in Broward that will be become a branch later in the year.

Brett Villaume:

Right; well good quarter.  Thank you.

Operator:

Our next question comes from John Pandtle from Raymond James; please go ahead.

John Pandtle:

Good morning.

Dennis S. Hudson:

Good morning John.

John Pandtle:

Denny, I was hoping to get your thoughts on the rollback of property taxes, the potential portability of the homestead cap, and also some of the insurance relief that’s come out from the Florida legislature and been signed by the governor. What impact do you think that may have on sales activity in your markets?

Dennis S. Hudson:

Mass confusion. All of those things are very positive certainly for real estate. For those of you who don’t know, there’s been a big move in Florida to provide for property tax relief. There are a number of proposals on the table. Nobody knows really where it’s going: anywhere from eliminating property taxes altogether on homesteaded properties to just a roll back of how that’s done.  All of that would be paid for, in general, depending on which direction you go, with increased sales tax statewide. I can’t really comment on that. The only thing I will comment on is we hear a little anecdotal evidence that people are sitting back and waiting to make purchase decisions—people who have homesteaded property here— because one of the proposals is to allow for portability of your homestead. That is to say if you move to a new home, you can bring, drag along with it, your low tax basis to the new home or a portion of that. From what I hear, that is highly likely to happen and would be a positive sign.

On the property insurance relief, big changes were made last year and thus far there have been disappointing results. The insurance companies have not reduced cost to the extent it was estimated and that’s an on-going bitter discussion that’s happening right now between the State and a number of insurance carriers in the State.

John Pandtle:

Okay Denny, thank you.

Operator:

Our next question comes from Al Savastano from Janney Montgomery; please go ahead.

Al Savastano:

Good morning guys, how are you?

Dennis S. Hudson:

Morning.

William R. Hahl:

Hi Al.

Al Savastano:

I’m just a little confused on the FAS 157 and 159. Did you adopted the standard, and did you sell about $100 million of securities? Then you paid down some overnight funds, and then is that it? Or did you repurchase more securities?

Dennis S. Hudson:

Yes to all of the above.

William R. Hahl:

You basically have it captured; and I do apologize, I should have put that as proforma on that slide.

Al Savastano:

So then…

Dennis S. Hudson:

We have, yes.  We did basically what you said. The only caveat is we have not completed the process on the purchase end.

Al Savastano:

Does that mean then that you didn’t really pay off borrowings?

Dennis S. Hudson:

Yes, we paid off borrowings.

William R. Hahl:

Just overnight borrowings.

Dennis S. Hudson:

Overnight borrowings.

Al Savastano:

But as you purchase securities you’re going to borrow again?

Dennis S. Hudson:

No, we still have liquidity we will be reinvesting.

William R. Hahl:

Right.

Dennis S. Hudson:

And those are all transactions that occurred post March 31.

Al Savastano:

And then the $550 million increase in yield you’re expecting to get is just difference from the rates on the securities you sold than what you plan on buying?

Dennis S. Hudson:

Yes, that and the elimination of the negative spread on a little bit of…

William R. Hahl:

Well, the borrowing costs.

Dennis S. Hudson:

…borrowing costs. There was some negative spread on some leverage that we had of probably $100+ million.

Al Savastano:

Great, thank you.

Dennis S. Hudson:

Thanks Al.

Operator:

Our next question comes from Tom Doheny from Tribeca Global; please go ahead.

Tom Doheny:

Good morning.

Dennis S. Hudson:

Morning.

Tom Doheny:

I think you alluded to in your comments, Denny, at the start of the call… I think you mentioned you have some in-flows into noninterest bearing deposits late in the quarter. I’m just wondering if we can get some more information on that and what you saw there?

Dennis S. Hudson:

I guess the only point we wanted to make is that the in-flows were there, and they were greater than anticipated. I don’t know that there’s any particular comment on any particular factor driving that other than we’re in our seasonal period.  It was end of quarter, and we feel as if there has been a slowing in the negative effect of residential real estate market slowing and how that has affected our DDA growth the last couple of quarters.  We said the last couple of quarters on these calls that we’ve seen large declines in some of our larger relationships as a result of fewer real estate transactions affecting escrow balances and the like throughout the deposit portfolio; and it appears as if that, at least for now, has declined less aggressively than it did in the last couple of quarters. It just stands to reason you reach a certain point where change in market conditions become fully absorbed in the balance sheet, and we may be approaching that point.

Tom Doheny:

Were there sort of lumpy in-flows into deposits or with the increase late in the quarter or anything like that?

William R. Hahl:

I don’t think we have analyzed it enough to be able to make that comment that it was related to any particular balances.

Tom Doheny:

Thanks a lot.

Operator:

There are no further questions at this time.

Dennis S. Hudson:

Great, well thank you very much for your attendance today and we look forward to talking with you at our next call.

Operator:

Thank you ladies and gentlemen. This concludes today’s teleconference. Thank you for participating. You may all disconnect.

- # -

EX-99.3

EXHIBIT 99.3

To 8-K dated April 30, 2007

Seacoast Banking Corporation of Florida

First Quarter 2007 Financial Highlights

Cautionary Notice Regarding Forward-Looking Statements

This discussion and analysis 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, 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 and regulatory changes; the risks of changes in interest rates on the level and composition of de posits, loan demand, 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 mor e 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, 2006 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.

Capitalizing on Market Disruption

Treasure Coast Market

	Martin		St. Lucie		Indian River		Total Offices
	Deposits	Offices	Deposits	Offices	Deposits	Offices
Seacoast	755,626	11	285,461	7	230,440	8	26
National City	383,569	8	883,844	11	37,513	6	25
Wachovia	533,193	10	500,517	7	1,383,533	10	27
Bank of America	558,301	10	432,575	8	364,071	6	24
SunTrust	139,616	3	295,704	5	251,832	6	14
Riverside	151,346	3	998,661	8	169,781	4	15
Alabama National	--		--		403,496	5	5

Over $1.3 billion in local community bank deposits will transfer to Cleveland

Source:  SNL Financial June 2006

Capitalizing on Market Disruption

Local Community Banks in Treasure Coast Market
	Deposits	Offices
Seacoast	1,271,527	26
Riverside	1,319,788	15
Gulfstream	268,166	2
Peoples Bank	134,523	3
First Bank of Indiantown	68,545	2
Marine Bank	89,754	2

Source:  SNL Financial June 2006

Balance Sheet Management – Adoption of SFAS 157 and SFAS 159

•

Seacoast began evaluating the potential impacts of SFAS 157 and 159 late in the first quarter of 2007.

–

Benefits were evident related to more active management of the balance sheet when considering broader use of fair value accounting.

•

$251 million of securities were transferred to trading from AFS and HTM portfolios on January 1, 2007.

–

The transfer to trading resulted in a $3.7 million adjustment to opening retained earnings and $561,000 in fair value appreciation in the first quarter income statement.

•

Prospective look

–

Smaller securities portfolio with approximately 40-50% more actively traded with earnings volatility managed with fair value interest rate swaps.

Items Impacting Q1 2007

		Pretax Amount*			EPS Impact
Recapture of specific allowance for impaired loan	$		1,192	$		0.04
Impact of adoption of SFAS 157 and 159			561			0.02
Implied provision for loan losses related to:
Q1 2007 loan growth			(100)			-
Adjustment to more conservative ranges due to continuation of market conditions			(542)			(0.02)
Total	$		1,111	$		0.04

* In Thousands

Balance Sheet Impact of Adoption of SFAS 157 and 159

		December 31, 2006			March 31, 2007
Held to Maturity	$		129,958	$		35,746
Available for Sale			313,983			157,965
Trading			-			125,000
Total Investment Securities	$		443,941	$		318,711
Net Borrowed Overnight Funds	$		206, 064	$		87,777

(In Thousands)

Estimated Quarterly Impact of Balance Sheet Restructuring

		Impact			EPS Impact
Net Interest Income *	$		550	$		0.02
Net Interest Margin (current Q1 2007)			3.92	%
Increase			0.18
Net Interest Margin (proforma Q1 2007)			4.10	%
Decline in Average Earning Assets	$		(45,000)

* In Thousands

Total Revenues Increase

(Dollars in thousands)	QTR1 07	QTR1 06	Growth	% Growth
Net Interest Income	$ 21,432	$ 20,274	$ 1,158	5.7	%
Noninterest Income	6,216	5,304	912	17.2
Total Revenues	$ 27,648	$ 25,578	$ 2,070	8.1	%

•

Dollars in Thousands; Excludes Provision for Loan Losses and Trading Account Profits

•

Calculated on a Fully Taxable Equivalent Basis

Overhead Ratio

	Q1-05	Q2-05	Q3-05	Q4-05
Overhead Ratio	65.4%	62.1%	62.5%	62.1%
	Q1-06	Q2-06	Q3-06	Q4-06	Q1-07
Overhead Ratio	62.5%	61.1%	64.7%	64.8%	66.5%

•

Noninterest Income Excludes Security Gains (Losses), Gain on Sale of Partnership Interest, Interest Rate Swap Profits (Losses) and Trading Account Profits

•

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

(Dollars in thousands)	Q1-2006	Q2-2006	Q3-2006	Q4-2006	Q1-2007
Loans, net of unearned income	$1,339,070	$1,614,646	$1,656,061	$1,733,111	$1,743,294

Commercial Lending Originations

(Dollars in thousands)	Q1-2006	Q2-2006	Q3-2006	Q4-2006	Q1-2007
Commercial Originations*	$117,000	$106,000	$80,000	$140,000	$76,000

*  Includes Commercial Real Estate

Deposit Performance

(Dollars in millions)	Q1-05	Q2-05	Q3-05	Q4-05
Core Deposits	976	1,120	1,170	1,138
Time Deposits > $100,000	133	142	167	173
DDA	367	482	442	473
(Dollars in millions)	Q1-06	Q2-06	Q3-06	Q4-06
Core Deposits *	1,170	1,313	1,279	1,255
Time Deposits >$100,000	193	227	254	244
DDA	441	489	425	392
(Dollars in millions)	Q1-07 (1)
Core Deposits *	1,229
Time Deposits >$100,000	260
DDA	401

*Includes Time Deposits < $100,000

(1) 21% DDA Mix

Deposit Mix

	QTR3 06		QTR4 06		QTR1 07
Demand	22	%	21	%	21	%
Core *	65		66		65
Time Deposits > $100,000	13		13		14
Total	100	%	100	%	100	%

*Includes Time Deposits < $100,000

Cost of Deposits

	Q2-05	Q3-05	Q4-05
Fed Funds Rate	3.25%	3.75%	4.25%
Cost of Deposits	1.18%	1.32%	1.54%
	Q1-06	Q2-06	Q3-06	Q4-06
Fed Funds Rate	4.75%	5.25%	5.25%	5.25%
Cost of Deposits	1.71%	1.99%	2.29%	2.54%
	Q1-07
Fed Funds Rate	5.25%
Cost of Deposits	2.69%

Average Earning Asset Growth

(Dollars in billions)	Q2-05	Q3-05	Q4-05
Average Earning Assets	$1.83	$1.89	$1.97

(Dollars in billions)	Q1-06	Q2-06	Q3-06	Q4-06
Average Earning Assets	$1.98	$2.25	$2.18	$2.19

(Dollars in billions)	Q1-07
Average Earning Assets	$2.20

Average loans represent 79% of earning assets at March 31, 2007, compared to 77% at December 31, 2006 and 63% at December 31, 2005

Prime Based Loans

(Dollars in thousands)	Q1-06	Q2-06	Q3-06	Q4-06	Q1-07
Prime Based Loans	$426,000	$496,000	$507,000	$528,000	$501,000

Total Floating Rate Assets

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

(Dollars in thousands)	Q1-06	Q2-06	Q3-06	Q4-06	Q1-07
Ending Floating Rate Assets	$632,000	$644,000	$568,000	$593,000	$562,000
Prime Rate	7.75%	8.25%	8.25%	8.25%	8.25%

Net Interest Margin and Net Interest Income

(Dollars in thousands)	Q1-06	Q2-06	Q3-06	Q4-06	Q1-07
Net Interest Margin	4.16%	4.29%	4.22%	3.95%	3.92%
Net Interest Income	$20,274	$24,030	$23,144	$21,846	$21,432

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

Residential Market Events

2004	2005	2006	2007	2008
Value Run Up Begins	Peak of Market Cycle	Buyers Froze	Resales Begin	Resales Continue
Investors & Speculators Jump In	Investors Stop Buying Speculators Leave	“Deer in the headlights” Sales Stop	Inventory Eases Adjustment Phase Begins	Foreclosures Rise as ARMs from Peak Adjust
Fuels More Inventory	Inventory Still Growing	Inventory Still Growing	Foreclosures Rise	Market Achieves Equilibrium

Service Area

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Seminole County

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Orange County

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Brevard County

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Indian River County

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Okeechobee County

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St. Lucie County

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Martin County

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Palm Beach County

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Hardee County

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Highlands County

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Desoto County

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Glades County

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Hendry County