8-K/A

8-K/A – page # of 6

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC  20549

______________________________

FORM 8-K/A

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported)  January 28, 2008 (January 22, 2008)

SEACOAST BANKING CORPORATION OF FLORIDA

(Exact Name of Registrant as Specified in Charter)

     Florida                                     1-13660                              59-2260678

(State or Other Jurisdiction         (Commission                     (IRS Employer

of Incorporation)                                 File Number)                        Identification No.)

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/A – page # of 6

SEACOAST BANKING CORPORATION OF FLORIDA

Seacoast Banking Corporation of Florida (the “Company”) filed a Current Report on Form 8-K dated January 28, 2008 (the “Form 8-K”) with the Securities and Exchange Commission for events that occurred on January 22, 2008 through January 24, 2008.  This amendment to the Form 8-K is being filed to correct the table heading related to the salary adjustments reported under Item 5.02 (e), Compensatory Arrangements of Certain Officers.  For the convenience of the reader, the Company is refiling the entire 8-K.  No modifications have been made to the Form 8-K except as described above.

8-K/A – page # of 6

Item 2.02

Results of Operations and Financial Condition

On January 23, 2008, the Registrant announced its financial results for the fourth quarter and year ended December 31, 2007.  

A copy of the press release announcing the Registrant’s results for the fourth quarter and year ended December 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 set forth in the forward-l ooking 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 demand, and the values of loan collateral, securities, and i nterest 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 failur e 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 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

 (e)

Compensatory Arrangements of Certain Officers.  

At its meeting on January 22, 2008, the Salary and Benefits Committee (the “Committee”) of the Board of Directors of Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”) and its principal subsidiary, Seacoast National Bank (the “Bank”) completed its annual performance and compensation review of the Company’s executive officers and approved 2008 base salary adjustments for two of the executive officers named in the Company’s 2007 proxy statement (“Named Executive Officers”).  The fiscal year 2008 annual base salary adjustments were made effective as of January 1, 2008.  The Named Executive Officers with adjustments to their fiscal year 2008 annual base salary from their 2007 base salary are as follows:

Named Executive Officer	Title	2007 Base Salary	2008 Base Salary
William R. Hahl	Executive Vice President and Chief Financial Officer	$284,000	$310,000
O. Jean Strickland	Senior Executive Vice President of the Company, and President and Chief Operating Officer of the Bank	$417,000	$429,500

The fiscal year 2008 annual base salaries for the Company’s Chief Executive Officer and other Named Executive Officers were not increased.

Item 7.01

Regulation FD Disclosure

On January 24, 2007, the Registrant held an investor conference call to discuss its financial results for the fourth quarter and year ended December 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 December 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

(d) The following exhibits are filed herewith:

Exhibit Number	Description
99.1	Press Release dated January 23, 2008 with respect to Seacoast Banking Corporation of Florida’s financial results for the fourth quarter and year ended December 31, 2007
99.2	Transcript of Registrant’s investor conference call held on January 24, 2007 to discuss the Registrant’s financial results for the fourth quarter and year ended December 31, 2007
99.3	Data on website containing information used in the conference call held on January 24, 2007 to discuss the Registrant’s financial results for the fourth quarter and year ended December 31, 2007

8-K/A – page # of 6

SIGNATURES

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

SEACOAST BANKING CORPORATION OF FLORIDA

(Registrant)

Date:  January 31, 2008

By:

/s/ Dennis S. Hudson, III

Dennis S. Hudson, III

Chairman and Chief Executive Officer

EX-99.1

EXHIBIT 99.1

To 8-K/A dated January 31, 2008

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 and

Chief Financial Officer

 (772) 221-2825

SEACOAST REPORTS EARNINGS OF $9.8 MILLION OR $0.51 EPS FOR 2007

STUART, FL., January 23, 2008 – Seacoast Banking Corporation of Florida (NASDAQ-NMS:  SBCF), a bank holding company whose principal subsidiary is Seacoast National Bank, today reported net income totaling $1,903,000 or $0.10 diluted earnings per share (“DEPS”) for the fourth quarter of 2007, an increase of $1.6 million compared to the third quarter 2007, but lower when compared to $5,685,000 or $0.30 DEPS for the fourth quarter a year ago. For the year 2007, net income totaled $9.8 million, or $0.51 DEPS, compared to $23.9 million or $1.28 earned in 2006. Excluding securities restructuring losses, earnings for the year totaled $13.1 million or $0.68 DEPS.

“This quarter our earnings continued to be impacted by the sluggish Florida residential real estate market with growth in non performing assets and an elevated provision for loan losses.  Our deposit performance for the quarter was strong and our revenue performance remained solid.  Overhead was essentially unchanged from the prior quarter and we are on track to implement cost savings of approximately $3.5 million (annually) in early 2008.  Our capital ratios remain strong and in fact have improved over the past year,” said Dennis S. Hudson, III, CEO of Seacoast.  Seacoast ended the year with assets of $2.4 billion up 1.3 percent over the prior year and deposits of $2.0 billion up 5.1 percent for the year.  Deposit growth during the quarter experienced strong seasonal growth reflecting continued strength in the Company’s core deposit franchise.  

In the fourth quarter loan growth slowed with a modest growth of $5.3 million on a linked quarter basis.  Total loans increased $165.3 million for the year, up 9.5 percent over the prior year.  Total deposits for the year increased by $96.3 million or 5.1 percent and during the fourth quarter deposits increased by $131.6 million or 7.1 percent.  Deposit growth during the quarter resulted from normal seasonal deposit increases and higher average public fund deposit balances due to credit concerns relating to the state run municipal investment pools.  It is believed that a portion of the increased public fund deposits may ultimately be placed in investments other than bank deposits.

Operating results for the quarter excluding the impact of the provision for loan losses totaled approximately $4.2 million or approximately $0.22 per share down from $5.4 million or $0.28 per share for the third quarter.  Noninterest expenses were positively impacted in the third quarter with the elimination of year to date accrued executive bonuses, incentive payouts for senior officers and profit sharing all as a result of lower than expected earnings performance.  If the third quarter’s operating results are adjusted to include only one quarter’s impact for the reversal of these expenses, cash earnings for the fourth quarter were comparable to the prior quarter.  In addition, the Company recorded in the fourth quarter 2007, $275,000 for its portion of the VISA litigation and settlement costs.  

The net interest margin declined 23 basis points on a linked quarter basis to 3.71 percent in the fourth quarter as a result of higher average nonaccrual loan balances and the repricing of prime based loans as a result of lower interest rates.  Competition for deposits throughout the quarter did not allow for the full benefit to be realized from the Federal Reserve reducing rates by 100 basis points beginning in September 2007.  In addition, the normal seasonal increase in deposits and repurchase agreements from municipal customers was invested in short term agencies and Federal funds sold at lower spreads.  Deposit costs were lower in the fourth quarter and totaled 2.93 percent compared to 3.01 percent for the third quarter of 2007.  Total cost of interest bearing liabilities declined 17 basis points linked quarter to 3.71 percent and increased by 19 basis points from 3.52 percent for the fourth quarter 2006.

 Net interest income for the fourth quarter totaled $20.7 million compared to $21.1 million earned in the third quarter and $21.8 for the fourth quarter a year ago.  Total revenue for the quarter was $26.6 million compared to the third quarter’s $27.1 million and the prior years fourth quarter’s $27.4 million (excluding gain on sale of partnership interest).

For the full year 2007 noninterest expenses totaled $77.4 million, up 6.0 percent from the prior year.  Total noninterest expense in the fourth quarter was $19.8 million, in line with guidance provided last quarter after excluding one time costs for VISA litigation and settlement costs and costs associated with increased problem credits.  Noninterest expenses for the quarter were lower as a result of the previously announced expense savings totaling approximately $2.0 million for the year.  The expense reductions primarily relate to the elimination of executive bonus compensation for the year, lower incentive payouts for senior officers and reduced profit-sharing compensation.  This action reduced compensation expense by approximately $500,000 in the fourth quarter, and will remain in effect until the Company produces meaningful earnings improvements.  The Company has also identified additional savings totaling approximately $3.5 million annually that it intends to implement over the next two quarters which include consolidation of branch offices, reductions in staff and a reduction in marketing costs and other professional fees.  Therefore, overhead is targeted to increase modestly in 2008.

Noninterest income for the fourth quarter, excluding securities and other gains and losses, increased 4.2 percent when compared to the prior year quarter, reflecting increased revenues from service charges on deposits, merchant fee income and marine finance fees offset by reduced revenues from wealth management services and mortgage banking.  Noninterest income for the year was up $1.8 million or 7.8 percent.  For the year, noninterest income related to mortgage loan production, marine loan production, service charges on deposits and merchant fees were up and wealth management fees were lower.

Loans placed on nonaccrual this quarter impacted net interest income.  Net interest income will continue to be impacted by increased nonaccrual loans and OREO which may continue to grow through the first half of 2008.  The majority of the nonaccrual loans are land and acquisition and development loans related to the residential market which are being monitored monthly and are in the process of collection through foreclosure, refinancing or sale.  During the fourth quarter nonperforming assets increased $21.7 million to $67.6 million.  The Company’s land and acquisition and development loans related to the residential market total approximately $299 million or 15.7 percent of total loans.   Focused and intensive monitoring over the past eighteen months resulted in a reduction of the total exposure to this portfolio from pay downs, guar antor performance, as well as, obtaining of additional collateral.  Of the $299 million approximately $51 million of loans are classified as impaired at year end compared to $40 million at the end of the third quarter 2007.  The valuation allowance provided for these loans at year end totaled approximately $4 million compared to approximately $6.8 million last quarter a decline of $2.8 million related to charge offs of applicable loans.   

Net loan charge offs for the fourth quarter 2007 totaled $4.5 million, up $3.4 million from the third quarter 2007 and totaled $5.8 million or 0.31 percent of total loans for the full year of 2007, compared to net recoveries of $106,000 for 2006.  Nonaccrual loans and accruing loans past due 90 days to total loans increased to 3.52 percent at December 31, 2007, compared to 0.72 percent for the year end 2006.  Nonperforming assets totaled $67.6 million at December 31, 2007, consisting of $66.9 million in nonperforming loans and $735,000 in other real estate owned.  The allowance for loan losses totals $21.9 million and represents 1.15 percent of year end loans, compared to 0.86 percent in the prior year.  

The Company’s capital ratios all remain strong with Tier 1 capital in excess of 10 percent and total risk based capital of approximately 12 percent at year end.  The Company is well capitalized under the regulatory framework for prompt corrective action.   In addition the Company’s operating subsidiary also has strong capital ratios with all of its ratios substantially above the required minimums required for well capitalized banks as defined by the federal banking agencies.

Seacoast will host a conference call on Thursday, January 24 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: 20287229; 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 January 24 by dialing (877) 213-9653 (domestic), using the passcode 20287229.

Seacoast Banking Corporation of Florida has approximately $2.4 billion in assets.  It is one of the largest independent commercial banking organizations in Florida, headquartered on Florida’s Treasure Coast, one of the wealthiest and fastest growing areas in the nation.

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Cautionary Notice Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, 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 deposits, 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 more difficult, time-consuming or costly than expected; th e 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.

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FINANCIAL HIGHLIGHTS				(Unaudited)
SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES
		Three Months Ended					Twelve Months Ended
(Dollars in thousands,		December 31,						December 31,
except per share data)		2007			2006				2007		2006
Summary of Earnings
Net income	$	1,903	$		5,685			$	9,765	$	23,854
Net income, excluding securities restructuring losses (5)		1,903			5,685				13,062		23,854
Net interest income  (1)		20,724			21,846				84,771		89,294
Performance Ratios
Return on average assets-GAAP earnings  (2), (3)		0.32	%		0.95	%			0.42	%	1.03	%
Return on average tangible assets (2),(3), (4),(5)		0.36			1.01				0.61		1.08
Return on average shareholders' equity–GAAP earnings (2), (3)		3.48			10.57				4.46		12.06
Return on average tangible shareholders’ equity (2),(3),(4),(5)		5.21			14.87				8.58		16.75
Net interest margin  (1), (2)		3.71			3.95				3.92		4.15
Per Share Data
Net income diluted-GAAP earnings	$	0.10	$		0.30			$	0.51	$	1.28
Net income basic-GAAP earnings		0.10			0.30				0.52		1.30
Net income diluted-excluding securities restructuring losses (5)		0.10			0.30				0.68		1.28
Net income basic-excluding securities restructuring losses (5)		0.10			0.30				0.69		1.30
Cash dividends declared		0.16			0.16				0.64		0.61

(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 calculations 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 return on average assets and equity excluding the impacts of noncash amortization expense on intangible assets is a better measurement of the Company’s trend in earnings growth.

(5)

Excluding securities restructuring losses of $5,118 (or $3,297 net of taxes) recorded in the first quarter 2007.

FINANCIAL  HIGHLIGHTS	(Unaudited)
SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES
			December 31,					Increase/
			2007		2006			(Decrease)
Credit Analysis
Net charge-offs (recoveries) year-to-date		$	5,758	$		(106)		n/m
Net charge-offs (recoveries) to average loans			0.31	%		(0.01)	%	n/m
Loan loss provision year-to-date		$	12,745	$		3,285		288.0	%
Allowance to loans at end of period			1.15	%		0.86	%	33.7
Nonperforming assets		$	67,591	$		12,465		442.2
Nonperforming assets to loans and other real estate owned at end of period			3.56	%		0.72	%	394.4
Selected Financial Data
Total assets		$	2,419,874	$		2,389,435		1.3
Securities – Trading (at fair value)			13,913			0		n/m
Securities – Available for sale (at fair value)			254,916			313,983		(18.8	)
Securities – Held for investment (at amortized cost)			31,900			129,958		(75.5	)
Net loans			1,876,487			1,718,196		9.2
Deposits			1,987,333			1,891,018		5.1
Shareholders’ equity			214,381			212,425		0.9
Book value per share			11.22			11.20		0.2
Tangible book value per share			8.26			8.18		1.0
Average shareholders' equity to average assets			9.41	%		8.55	%	10.1
Average Balances (Year-to-Date)
Total assets		$	2,324,209	$		2,314,864		0.4
Less: Intangible assets			57,004			51,335		11.0
Total average tangible assets		$	2,267,205	$		2,263,529		0.2
Total equity		$	218,728	$		197,866		10.5
Less: Intangible assets			57,004			51,335		11.0
Total average tangible equity		$	161,724	$		146,531		10.4

(1)  Calculated on a fully taxable equivalent basis using amortized cost.

(2)  These ratios are stated on an annualized basis and are not necessarily indicative of future periods.

(3) The calculations 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 return on average assets and equity excluding the impacts of noncash amortization expense on intangible assets is a better measurement of the Company’s trend in earnings growth.

(5)

Excluding securities restructuring losses of $5,118 (or $3,297 net of taxes) recorded in the first quarter 2007.

n/m = not meaningful

CONDENSED CONSOLIDATED STATEMENTS OF INCOME  (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

				Three Months Ended				Twelve Months Ended
				December 31,				December 31,
(Dollars in thousands, except per share data)				2007		2006		2007		2006
Interest on securities:
Taxable	$			3,438	$	5,050	$	14,812	$	21,933
Nontaxable				90		92		364		298
Interest and fees on loans				33,503		31,671		133,299		114,388
Interest on federal funds sold and other investments				420		334		1,631		3,208
Total Interest Income				37,451		37,147		150,106		139,827
Interest on deposits				6,540		5,642		24,300		19,184
Interest on time certificates				7,495		6,700		29,580		21,886
Interest on borrowed money				2,778		3,024		11,757		9,717
Total Interest Expense				16,813		15,366		65,637		50,787
Net Interest Income				20,638		21,781		84,469		89,040
Provision for loan losses				3,813		2,250		12,745		3,285
Net Interest Income After Provision for Loan Losses			16,825			19,531		71,724		85,755
Noninterest income:
Service charges on deposit accounts				2,070		1,875		7,714		6,784
Trust income				627		654		2,575		2,858
Mortgage banking fees				278		337		1,409		1,131
Brokerage commissions and fees				572		598		2,935		3,002
Marine finance fees				596		570		2,865		2,709
Debit card income				563		565		2,306		2,149
Other deposit based EFT fees				103		114		451		421
Merchant income				676		624		2,841		2,545
Other				474		382		1,814		1,514
				5,959		5,719		24,910		23,113
Gain on sale of partnership interest				0		1,147		0		1,147
Securities restructuring losses				0		0		(5,118)		0
Securities gains (losses), net				24		(73)		70		(157)
Total Noninterest Income				5,983		6,793		19,862		24,103
Noninterest expenses:
Salaries and wages				7,747		6,479		31,575		29,146
Employee benefits				1,918		1,699		7,337		7,322
Outsourced data processing costs				1,884		1,768		7,581		7,443
Occupancy				1,956		1,893		7,677		7,435
Furniture and equipment				754		689		2,863		2,523
Marketing				707		1,564		3,075		4,359
Legal and professional fees				1,068		863		4,070		2,792
FDIC assessments				56		121		225		325
Amortization of intangibles				315		315		1,259		1,070
Other				3,387		2,782		11,761		10,630
Total Noninterest Expenses				19,792		18,173		77,423		73,045
Income Before Income Taxes				3,016		8,151		14,163		36,813
Provision for income taxes				1,113		2,466		4,398		12,959
Net Income		$		1,903	$	5,685	$	9,765	$	23,854
Per share common stock:
Net income diluted		$		0.10	$	0.30	$	0.51	$	1.28
Net income basic				0.10		0.30		0.52		1.30
Cash dividends declared				0.16		0.16		0.64		0.61
Average diluted shares outstanding				19,088,824		19,129,452		19,157,597		18,671,743
Average basic shares outstanding				18,906,221		18,787,297		18,936,541		18,305,258

CONDENSED CONSOLIDATED BALANCE SHEETS  (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

		December 31,			December 31,
(Dollars in thousands, except share amounts)		2007			2006
Assets
Cash and due from banks	$		50,490	$	89,803
Federal funds sold and other investments			47,985		2,412
Total Cash and Cash Equivalents			98,475		92,215
Securities:
Trading (at fair value)			13,913		--
Available for sale (at fair value)			254,916		313,983
Held for investment (at amortized cost)			31,900		129,958
Total Securities			300,729		443,941
Loans available for sale			3,660		5,888
Loans, net of unearned income			1,898,389		1,733,111
Less: Allowance for loan losses			(21,902	)	(14,915	)
Net Loans			1,876,487		1,718,196
Bank premises and equipment, net			40,926		37,070
Other real estate owned			735		--
Goodwill and other intangible assets			56,452		57,299
Other assets			42,410		34,826
	$		2,419,874	$	2,389,435
Liabilities and Shareholders’ Equity
Liabilities
Deposits
Demand deposits (noninterest bearing)	$		327,646	$	391,805
Savings deposits			1,056,025		929,444
Other time deposits			332,838		325,251
Time certificates of $100,000 or more			270,824		244,518
Total Deposits			1,987,333		1,891,018
Federal funds purchased and securities sold under agreements to repurchase, maturing within 30 days			88,100		206,476
Borrowed funds			65,030		26,522
Subordinated debt			53,610		41,238
Other liabilities			11,420		11,756
			2,205,493		2,177,010
Shareholders' Equity
Preferred stock			--		--
Common stock			1,920		1,899
Additional paid in capital			90,924		88,380
Retained earnings			122,396		124,811
Treasury stock			(1,193	)	(310	)
			214,047		214,780
Accumulated other comprehensive loss, net			334		(2,355	)
Total Shareholders’ Equity			214,381		212,425
	$		2,419,874	$	2,389,435
Common Shares Outstanding			19,110,089		18,974,295

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												Last 12
(Dollars in thousands, except per share data)					Fourth			Third			Second		First				Months
Net income		$			1,903	$		285	$		4,808	$		2,769	$		9,765
Net income, excluding securities restructuring losses (5)					1,903			285			4,808			6,066			13,062
Operating Ratios
Return on average assets-GAAP earnings (2),(3)					0.32	%		0.05	%		0.85	%		0.47	%		0.42	%
Return on average tangible assets (2), (3), (4), (5)					0.36			0.09			0.91			1.09			0.61
Return on average shareholders' equity GAAP earnings (2),(3)				3.48				0.51			8.81			5.16			4.46
Return on average tangible shareholders’ equity (2), (3), (4), (5)				5.21				1.18			12.43			15.83			8.58
Net interest margin (1),(2)					3.71			3.94			4.09			3.92			3.92
Average equity to average assets					9.20			9.69			9.62			9.15			9.41
Credit Analysis
Net charge-offs		$			4,451		$	1,039		$	143			125		$	5,758
Net charge-offs  to average loans				0.92		%		0.22	%		0.03	%		0.03	%		0.31	%
Loan loss provision		$			3,813	$		8,375	$		1,107	$		(550)	$		12,745
Allowance to loans at end of period					1.15	%		1.19	%		0.84	%		0.82	%
Nonperforming assets		$			67,591	$		45,894	$		15,495	$		4,088
Nonperforming assets to loans and other real estate owned at end of period				3.56		%		2.42	%		0.85	%		0.23	%
Nonaccrual loans and accruing loans 90 days or more past due to loans outstanding at end of period				3.52				2.44			0.89			0.27
Per Share Common Stock
Net income diluted-GAAP earnings			$		0.10	$		0.01	$		0.25	$		0.14	$		0.51
Net income basic-GAAP earnings					0.10			0.02			0.25			0.15			0.52
Net income diluted-excluding securities restructuring losses (5)					0.10			0.01			0.25			0.32			0.68
Net income basic-excluding securities restructuring losses (5)					0.10			0.02			0.25			0.32			0.69
Cash dividends declared					0.16			0.16			0.16			0.16			0.64
Book value per share					11.23			11.20			11.32			11.34
Average Balances
Total assets	$				2,361,086	$		2,279,036	$		2,277,678	$		2,379,739
Less:  Intangible assets					56,605			56,884			57,322			57,213
Total average tangible assets	$				2,304,481	$		2,222,152	$		2,220,356	$		2,322,526
Total Equity	$				217,172	$		220,868	$		219,020	$		217,834
Less:  Intangible assets					56,605			56,884			57,322			57,213
Total average tangible equity	$				160,567	$		163,984	$		161,698	$		160,621

(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 calculations of ROA and ROE do not include the mark-to-market unrealized gains (losses) because the unrealized gains (losses) on available for sale securities are not included in net income.

(4)

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

(5)

Excludes securities restructuring losses of $5,118 (or $3,297, net of taxes) recorded in the first quarter 2007.

CONSOLIDATED QUARTERLY FINANCIAL DATA   (Unaudited) (continued)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

(Dollars in thousands)

SECURITIES			December 31, 2007		December 31, 2006
U.S. Treasury and U.S. Government Agencies	$		13,913	$	--
Securities Trading			13,913		--
U.S. Treasury and U.S. Government Agencies			30,405		94,676
Mortgage-backed			218,937		214,661
Obligations of states and political subdivisions			2,058		2,049
Other securities			3,516		2,597
Securities Available for Sale			254,916		313,983
Mortgage-backed			25,755		123,587
Obligations of states and political subdivisions			6,145		6,371
Securities Held for Investment			31,900		129,958
Total Securities	$		300,729	$	443,941
LOANS		December 31, 2007			December 31, 2006
Construction and land development	$		609,567	$	571,133
Real estate mortgage			1,074,814		949,824
Installment loans to individuals			86,362		83,428
Commercial and financial			126,695		128,101
Other loans			951		625
Total Loans	$		1,898,389	$	1,733,111

AVERAGE BALANCES, YIELDS AND RATES (1) (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

		2007								2006
		Fourth Quarter		Third Quarter						Fourth Quarter
		Average	Yield/			Average	Yield/			Average		Yield/
(Dollars in thousands)		Balance	Rate			Balance	Rate			Balance	Rate
Assets
Earning assets:
Securities:
Taxable	$	263,562	5.22	%	$	233,809	5.25	%	$	462,628	4.37		%
Nontaxable		8,168	6.46			8,216	6.33			8,409	6.47
Total Securities		271,730	5.26			242,025	5.29			471,037	4.40
Federal funds sold and other
investments		33,351	5.00			21,364	5.53			24,872	5.33
Loans, net		1,913,991	6.95			1,866,954	7.30			1,698,552	7.40
Total Earning Assets		2,219,072	6.71			2,130,343	7.05			2,194,461	6.73
Allowance for loan losses		(22,607)				(15,361)				(12,842)
Cash and due from banks		46,752				47,633				76,523
Premises and equipment		40,233				39,190				36,731
Other assets		77,636				77,231				77,911
	$	2,361,086		$		2,279,036		$		2,372,784
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
NOW	$	77,999	2.80	%	$	53,842	2.78	%	$	198,610	2.10		%
Savings deposits		105,789	0.71			112,323	0.71			136,410	0.71
Money market accounts		764,200	3.01			715,885	3.15			591,740	2.92
Time deposits		616,621	4.82			629,479	4.92			581,520	4.57
Federal funds purchased and other short term borrowings		132,606	3.82			127,163	4.41			154,065	4.68
Other borrowings		102,987	5.78			69,860	7.00			67,798	7.06
Total Interest-Bearing Liabilities		1,800,202	3.71			1,708,552	3.88			1,730,143	3.52
Demand deposits (noninterest-bearing)		336,432				340,462				415,791
Other liabilities		7,280				9,154				13,496
Total Liabilities		2,143,914				2,058,168				2,159,430
Shareholders' equity		217,172				220,868				213,354
	$	2,361,086		$		2,279,036		$		2,372,784
Interest expense as a % of earning assets			3.01	%			3.11	%			2.78		%
Net interest income as a % of earning assets			3.71				3.94				3.95

(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

Fourth Quarter 2007 Conference Call

Page #

EXHIBIT 99.2

To 8-K/A dated January 31, 2008

Fourth Quarter and Year-End Earnings Release

Seacoast Banking Corporation

Dennis S. Hudson

January 24, 2008

10:00 a.m. Eastern Time

Operator:

Good morning, ladies and gentlemen, and welcome to the Fourth Quarter Earnings Results 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’ll now turn the call over to Mr. Dennis S. Hudson.  Mr. Hudson, you may begin.

Dennis S. Hudson III:

Thank you very much, and welcome to Seacoast’s Fourth Quarter 2007 Earnings Conference Call.  We want to apologize for the small delay here.  There was some confusion regarding our passcode and we wanted to allow enough time for folks to make sure they could get on the call.  

Before we begin, I’d like to direct your attention to the statement contained at the end of our press release concerning forward statements.  During the call, we are going to be discussing issues that constitute forward-looking statements within the meaning of the Securities and Exchange Act and so our comments are intended to be covered within the meaning of that Act.  We have also posted a few slides on our website, which we will refer to in our comments.  Feel free to visit www.seacoastbanking.com and click on Presentations at the bottom of the Investor Relations listing to view those slides as we continue with our comments.  

With me in the room today is Bill Hahl, our Chief Financial Officer; as well as Doug Gilbert, our Vice Chairman and Chief Credit Officer; Jean Strickland, our Chief Operating Officer; and also Russ Holland, who is in charge of our commercial real estate lending.

Seacoast’s earnings this quarter continue to be affected by the very soft residential real estate market in Florida.  Earnings for the quarter were actually up from last quarter when we provided a large boost to our reserve.  We are $0.10 per share for the quarter and $0.68 per share for the year, excluding a securities restructuring that occurred earlier in the year.  

As anticipated, nonperforming loans continue to grow this quarter and grew by about $20 million, with most of the nonperforming loans related to residential development loans and land loans.  At year end, nonperforming loans totaled around $67 million, with a little more than half of that amount comprised of either land loans or development loans related to the residential market.  Approximately 30 percent of our nonperforming loans were various commercial properties, with a good portion of those owned by developers of residential properties who are themselves experiencing cash flow problems.  We also are carrying one low-rise completed condo project construction loan that is located right here in our market, and that comprises around 11 percent of nonaccruals.  This project is fully completed and experienced a complete fallout of pre-sold contracts.  We believe we a re well covered with project equity and are moving forward to foreclosure.  Finally, the balance of nonaccruals, which would total approximately 6.5 percent, would be individual consumer residential properties.  

During the quarter, we saw our charge-offs increase to around $4.5 million with most of the increase attributable to a charge-down of a residential development acquisition and development loan that was considered impaired earlier in the year.  We created a specific reserve for this credit that grew over the past couple of quarters, and this quarter we confirmed the reserve balance of the loss and charged off the loan down to reflect the fair market value of the collateral, as the project is now moving into foreclosure.  

Unlike other issues affecting the banking industry today, our credit exposures remain relatively straightforward and quantifiable.  We were among the first banks in Florida to recognize the impact of a dramatic slowing in residential sales activity in late 2006.  At that time we undertook an extensive review of our developer and builder relationships and have been taking action since then to reduce these exposures.  Since that time we continue to closely monitor on a monthly basis all of those exposures and carefully examined collateral values associated with troubled loans. By aggressively facing current market realities, and doing so early on, we will be positioned to more quickly improve our performance in the future as we cycle through this period.

Now I’d like to turn the call over to Bill for a few comments on earnings and the margin, as well as our loan and deposit growth for the quarter.  Bill.  

William Hahl:

Thanks Denny.  As Denny mentioned, I’m going to cover revenue and loan growth, deposit costs and growth, credit quality impacts for the quarter and noninterest expenses.  

Total revenues for the quarter were $26.6 million compared to $27.1 million in the third quarter 2007 and were also lower than the $27.4 million the same quarter a year ago.  These results reflect solid loan growth for the year, offset by the impact of increased nonaccrual loans.  

Noninterest income improved linked-quarter for service charges and EFT fees on deposits, mortgage banking fees, marine finance fees, but were offset by lower wealth management revenues.  Net interest income was increased by a greater leverage from seasonal deposit growth, but was offset by the effects of increased nonaccrual loans, lower yields on prime-based loans and slower loan growth in the fourth quarter.  Also, the net interest margin was impacted by lower floating rate earning asset yields from rate reductions and from strong deposit competition which slowed our ability to immediately reprice our deposits.  These factors resulted in reducing interest income for the quarter by $320,000 or 0.85 percent linked-quarter and helped drive a $423,000 decline in net interest income.  

While the Fed has lowered rates 100 basis points this year and nonperforming assets have increased to approximately $67 million, total revenues for the quarter were down just $482,000 or 1.7 percent compared to the first quarter this year.  This indicates that we have had good growth in our franchise as evidenced by annual growth rates for loans and deposits.  

Loans grew at an annualized rate of 12 percent for the first nine months, but loan growth slowed in the fourth quarter and we finished at 9.5 percent for the year.  This was consistent with our prior guidance that loan growth would be likely to be lumpy quarter-to-quarter as a result of unpredictable loan paydowns on problem loan resolutions and completed residential construction loan projects.

Going forward, loan growth is likely to be slower in 2008 and vary quarter-to-quarter as a result of the same issues that impacted this quarter.  Our expansion into Broward County continues to have favorable loan results, as does our addition of senior lenders in the Orlando market.  Loan pipelines in these markets remain good, so we believe loan growth for 2008, while slower, will still contribute to earnings.  

Now I have a few comments on deposit growth and costs.  Total deposits for the year increased by $96.3 million or 5.1 percent.  While competition for deposits remained strong throughout the fourth quarter, we were able to lower deposit rates as the Fed lowered its benchmark rate. The total costs of deposits decreased to 2.93 percent, down 8 basis points linked-quarter and better than the third quarter results which increased 13 basis points.  The overall rate paid on interest-bearing liabilities declined 17 basis points to 3.71 percent linked-quarter.  Besides normal seasonal deposit growth this quarter, public fund customer deposits grew from the transfer of deposits from a state run money fund because of credit concerns related to some of the investments held by the fund.  

Consistent with our prior comments, deposit mix year-over-year has resulted in pressure on the net interest margin.  Average noninterest-bearing deposits as a percent of total loans declined to 18 percent compared to 22 percent a year ago, and average timed deposits increased to 32 percent of total loans compared to 30 percent a year ago.  While competitors initially continued with its aggressive deposit offerings in the fourth quarter, many have more recently reduced their rates. These deposit mix changes and competition will likely to continue to pressure the margin, but will be offset by lower interest rates due to future Fed actions to lower interest rates.  Therefore, net interest income will depend on loan growth, problem loan resolutions, organic deposit growth, and declines in the cost of interest-bearing liabilities, offset by future increases in nonaccrual loans and lower yields on prime-based loans.  

Management recognized the need to improve organic deposit growth going forward and has worked with an outside consultant in the fourth quarter to implement new strategies in its retail branches. The objective is to improve deposit mix and have higher deposit growth within the Company’s footprint as we emerge from the negative impacts of the credit cycle.

Now a few comments on credit quality impacts: As Denny mentioned, nonperforming assets have increased approximately $22 million this quarter to $67.6 million or 3.56 percent of loans plus other real estate loans or other real estate outstanding at year end.  As indicated last quarter, nonperforming loan balances will experience variability over the next few quarters and consequently will produce a drag on net interest margin and net interest income.  This quarter the NPAs reduced net interest income by approximately $1.2 million and our provision for loan losses totaled $3.8 million, a decline of $4.6 million from the third quarter’s provision.  

Pro forma operating results, without the non-cash provision of $3.8 million, totaled $4.2 million or $0.22 per share.  This indicates that the Company continues to produce decent pre-provision quarterly earnings even in a quarter with slower loan growth, and that much progress has been made in growing the franchise and that our efforts to date will lead ultimately to improved performance as the impacts of the credit cycle moderate.  

Finally, I have a few comments on noninterest expenses.  During the third quarter conference call, we indicated we believed the current quarter overhead run rate would be approximately $19 million for the fourth quarter.  Actual noninterest expenses for the fourth quarter totaled $19.8 million.  During the fourth quarter, the Company recorded its portion of the Visa litigation and settlement costs and an additional accrual for unfunded loan commitments for a total expense of $700,000.  The Company believes that there’s a good possibility it will recover these amounts in the future.  

Last quarter we reported that costs savings were identified and should total approximately $3.5 million annually, to be fully implemented by the beginning of the second quarter 2008.  Offsetting these cost savings are costs for branch expansion within the Company’s footprint and the full year impacts of the added revenue producing personnel and market expansion during 2007.  In 2007, we hired additional loan producers and other key personnel to take advantage of growth opportunities in our markets and from the disruption that was occurring in our existing markets.  These overhead additions have resulted in loan and deposit growth and increased fee income this year.  We are going to evaluate our success in further growing revenues, loans and deposits each quarter in 2008 and make further overhead adjustments as necessary.  

Denny.

Dennis S. Hudson III:

Thanks Bill.  As you just heard, we have made some progress and are prepared to take further action if needed to address overhead in the year ahead.  We are pleased in particular with our progress in terms of deposit growth this quarter.  We did see more significant seasonal growth in deposits this quarter which was welcomed.  It will also be important for us to carefully manage down our deposit costs in the current interest rate environment.  I am also encouraged by the recent rally in the ten-year government which, if it holds together with seller pricing concessions, could be very helpful to bringing stability to the housing market in the coming months.

I can’t let this moment pass without a few comments regarding our positioning in the industry. While we continue to maintain a very large residential mortgage portfolio or consumer mortgage portfolio, we have never originated nor have we owned any exposure to subprime lending, Alt-A loans, no-doc loans, option ARM loans, or any of the so-called exotic residential loans.  We have also never engaged in residential loan warehouse lending, nor have we been a purchaser of brokered residential loans.  As a result, our consumer and residential mortgage portfolio and its asset quality continues to outperform recent industry trends.  We lost residential market share over the past few years as others aggressively marketed these new exotic mortgages to our customers. Today those customers are returning to sanity and returning to us as well as other local providers.

So as the industry returns to go old fashioned blocking and tackling, it’s important for us to stay focused on what we do best and that is building solid long-term relationships with our customers. I appreciate the job all of our associates are doing in this very difficult period. They are working long and hard hours under challenging circumstances and deserve all the credit for the improvements we’ll begin to deliver in the months ahead.  

With that, I’ll turn the call open to questions.

Operator:

Thank you.  We will now begin the question and answer session. If you have a question, press star then one on your touchtone phone.  If you wish to be removed from the queue, please press the pound sign or the hash key.  If you’re using a speakerphone, you may need to pick up the handset first before pressing the numbers. Once again, if there are any questions, press star then one on your touchtone phone.

Our first question is from Michael Pramontana from Smith Barney; please go ahead.

Michael Pramontana:

Yes, I was wondering how secure the dividend is now with lower earnings?

Dennis S. Hudson III:

Right.  Well first of all, if we felt we needed to reduce our dividend, we would certainly say so.  I would only point out that while our earnings have been impacted by higher credit costs, and while we are certainly disappointed at that, we have continued to remain profitable.  Most important, I think, is the fact that our capital ratios remain very strong.  In fact, they are stronger than other banks in Florida and other banks around the country, and our capital ratios have actually grown and shown some improvement over the past 12 months.  In fact, our capital ratios today are stronger than they were in early 2007.  Our growth rates in the near-term, in terms of balance sheet growth, are expected to remain somewhat subdued given the environment, so we see no pressure on capital coming from growth or coming from negative earnings.  So while we don’t see our dividend increasing in the near-term, we don’t presently have any plans to reduce it.

Michael Pramontana:

Thank you.

Operator:

Next question is from Christopher Marinac from Fig Partners; please go ahead.

Christopher Marinac:

Hey Denny, good morning.

Dennis S. Hudson III:

Good morning.

Christopher Marinac:

Could you talk about the demand function of what you’re seeing in commercial real estate, both in your part of the state as well, I mean in the Treasure Coast, as well as elsewhere?

Dennis S. Hudson III:

Demand, are you referring to residential demand?

Christopher Marinac:

Yes, but also commercial as well.

Dennis S. Hudson III:

Oh okay.  You know we still have pipelines and we were still open for business and still doing loans.  I would say on the residential side, you hear some anecdotal discussion of buyers beginning to move back in and bottom fish.  We have seen some nice price reductions occur on the residential side over the last quarter or two, but it’s certainly too soon to call that an improvement at this point.  Russ, any comments on commercial demand, kind of what you see?

Russ Holland:

The commercial demand obviously has slowed because of the markets we operate in.  We still do have a respectable pipeline, as Bill pointed out.  We have staffed up some of our lending teams, so our pipeline in Broward and Orlando represents two-thirds of our current commercial pipeline.  

Dennis S. Hudson III:

So things are certainly a little bit sluggish on the commercial side.  I would also say that we are remaining very, very cautious. There are certain parts of the commercial market that we think will feel the effects of the spillover in the residential area, for example retail, and we are very cautious about certain aspects of the commercial market.

Christopher Marinac:

Okay, and then as you’ve gone through this process of going through the portfolio the last few quarters, how do your appraisals stand in terms of their timeframe—when they were last updated?

Dennis S. Hudson III:

Generally speaking, with any of the problem credits that we’ve been dealing with, the appraisals that we are relying on have been done in the last 30 to 60 days, generally speaking.  We don’t just rely on the independent appraisal; we also have a team of folks internal to our Company who are challenging all of the assumptions used in those independent appraisals and, if need be, are making further adjustments on our own….

Jean Strickland:

Downward.

Dennis S. Hudson III:

…downward.  So we feel as of right now we understand where current values are, and we are working hard to make sure that those values, the reality of those values, are reflected in the numbers that we’ve presented.  

Christopher Marinac:

Great, and then the last question just has to do with interest reserves:  How prevalent is that in your construction portfolio and is that at all any precursor to future issues?

Dennis S. Hudson III:

There’s very little of that left.  Most of the early growth in nonperformers, or some of it, had to do with us not funding any of that.  So we did very little of that generally over time, really probably more so as a function of the size of loans we are doing.  We’re not doing gigantic loans here, and we were looking at guarantor strength over the last year to handle a lot of the carrying charges; and a lot of that guarantor strength has weakened over the last year, so I would say very little of that.

Christopher Marinac:

Okay, very well. Thanks very much.

Operator:

Next question is from Andrew Lassak from Bowfish Trading; please go ahead.

Andrew Lassak:

Yeah hi.  I’ve got a question, on your current nonaccruals, of the $67 million, what is the actual amount of reserves that you’re holding against it?

Dennis S. Hudson III:

Well, I think in our release we talked about impaired loans and we have a portion of our impairment reserve included in that, but the reserve is a general reserve on the whole portfolio.  Generally speaking, on a nonaccrual loan, if there’s been a confirmed loss, we would write that nonaccrual loan down.  I mentioned in my earlier comments, substantially all of the loan loss we took this quarter had to do with writing down some of those loans.

Andrew Lassak:

On your portfolios that you have, obviously your residential, your commercial and your construction and development, the problem seems to be coming from the construction and development.  As we’ve seen in our local economic markets and across the nation, that obviously has been a major issue.  How comfortable are you with your current portfolio of the additional, of the $299 million going forward?  Have you seen any loans in the last 23 days, since the end of your quarter, is it a similar percentage moving into nonaccruals?  I mean, are you comfortable with that portfolio going forward or are you still very weary of what you’re seeing?

Dennis S. Hudson III:

Well, I guess all I can say is that we have looked very carefully at that entire portfolio.  The reason we disclosed that number, it was something we talked about the last couple of quarters, kind of trying to scope the size of the residential construction and land development portfolio. That’s what we have been monitoring very, very carefully for over a year now; and that monitoring has been occurring on a daily, weekly, monthly basis for all of those credits.  All I can tell you is we have done what we think is a pretty conservative job at looking at the condition of each and every one of those credits and where appropriate they have been marked nonaccrual.

Andrew Lassak:

Right.  Have you had to go… Have you been able to…  Well let me ask you this: On any of your foreclosures and actual liquidations that you have had to do or have done in that portfolio, would you say that what your appraisal values are and what you’ve been getting in the marketplace have been congruent?

Dennis S. Hudson III:

Yeah, I would say so. I mean again all I can say is we have been very careful, number one, to make certain that we have the most currently available data that would be used to evaluate the carrying value of any of those assets; number two, we have obtained that from qualified independent sources; and number three, we have our own team of people who are highly qualified reviewing that information and either confirming that they agree with the value or in some cases creating more conservative estimates.  So we have done the best job we can.  We believe that the values that we hold today are supported by market transactions.

Andrew Lassak:

Right.  But what I’m asking is:  Has any current market transactions shown that those numbers have been congruent?

Dennis S. Hudson III:

Well we received… I will say we’ve received a handful of payouts and paydowns on credits that were consistent with our carrying value.  This past quarter we had, I believe, a $4.5 million credit refinance and payoff and that was about where we thought, we felt comfortable with the value and I guess there was another party that agreed with us.

Douglas A. Gilbert:

Denny, it might be helpful to say that we, at this point, we have not taken any A&D loans all the way through the foreclosure process.  The only actual foreclosures we have in OREO are some kind of cats and dogs of residential loans.  But at this point, even though we have some in the foreclosure process, we can’t answer his question because we haven’t brought one all the way through.  But we have seen, as Denny said, the ones that have paid-off have been paid-off in support of what we thought the value of the ones that we have liquidated were.

Dennis S. Hudson III:

Hope that helps.

Andrew Lassak:

Yeah, you did answer my question.  You guys have a great franchise and best of luck. Thanks.

Dennis S. Hudson III:

Thanks.

Operator:

Our next question is from Wilson Jaeggli from Southwell Partners; please go ahead.

Wilson Jaeggli:

Thank you.  Good morning.  Could you tell us what OREO is here in the quarter?

William Hahl:

$735,000.

Wilson Jaeggli:

I’m sorry, you broke up.  What did you say?

William Hahl:

$735,000.

Wilson Jaeggli:

$735,000.  Could you help us here?  When you have a confirmed loss, I know you just mentioned that very few things have gone through the process and no A&D loans have, but some residential construction loans have where they’ve either gone into OREO or foreclosure and basically where you have a confirmed loss, could you give us an idea of what percent that confirmed of that eventual evaluation is?  What percent that is of the original loan?  Give us feel, in other words, for what you having when you actually…. You know the question; when you basically go through the process here, what kind of write-downs do you have to take on your original loan?

Dennis S. Hudson III:

Well let me just tell you this:  With regard to raw land and sort of improved vacant property and that sort of thing, which is where we are seeing the most significant valuation adjustments, it’s pretty clear that there has been—it varies widely from project-to-project and loan-to-loan—but it’s not hard to imagine there has been a good 40 to 40-plus percent decline in value, and maybe a 50 percent decline in value, from a level that we saw two or three years ago.  We never bought into some of the super inflated values we saw over the last two years; but what we felt was maybe a supportable value two years ago, that we would have agreed with and underwritten to, we have seen a pretty solid 40 to 50 percent decline in value.  

On the residential side where you’re looking at improved properties and the like—again, it can be very, very dramatically different from house-to-house—but there has been a very clear 15-plus percent decline in average home prices in most of the markets we’re in.  So the losses that we have taken or the write-downs we’ve created and the provisioning we’ve taken reflect those kinds of broad-based numbers.  It’s very dangerous for me to give you that number because it does vary significantly.  We have others where we have seen very little decline.

Wilson Jaeggli:

I understand.  In the land loans, are there personal guarantees on most of those loans?

Dennis S. Hudson III:

Yeah, on virtually…  Matter of fact, I would say on every single case there are personal guarantees and…

Jean Strickland:

Every one of them.

Dennis S. Hudson III:

…every one of them.  I will tell you, one of our larger nonperforming loans has been reduced by personal guarantees. I think our holding value has been reduced around…what, on that one about $3 million or so…  

Douglas A. Gilbert:

$2.5 million

Dennis S. Hudson III:

$2.5 to $3 million in the last two quarters, so I mean we are actively pursuing those guarantees.  We tend to not book those unless we collect them.

Wilson Jaeggli:

You gave us an idea for raw land and residential here.  You mentioned you had one condo project that was approximately 11% of NPAs.  What kind of percent decline have you seen there?  Is that along the same lines of 40% or so or…

Jean Strickland:

There’s no loss in that. That has been reviewed and no loss has been identified on it.

Wilson Jaeggli:

That’s great.  When you have no loss like that, is that simply because your original loan to value was quite low; or if you have seen a decline in property value, why is there no loss in that kind of loan?

Dennis S. Hudson III:

Because it was…  

Jean Strickland:

The equity upfront.

Dennis S. Hudson III:

…the equity upfront in the project and the loan to value in the underwriting originally.  In that particular case, I believe there were deposits placed on the loan that further reduced our exposure, and those folks walked away from those deposits.

Wilson Jaeggli:

I see.  So you basically did a quality underwriting job, right?

Dennis S. Hudson III:

Well, we’d like to think so, but we’re not at all happy that it’s on nonaccrual, I can tell you that.

Wilson Jaeggli:

I’m sure you’re not.  What is the average loan size for construction loans?

Dennis S. Hudson III:

We don’t have that information and haven’t published it.  It’s going to vary from….  The ones I’m sure you’re more concerned about would be project financing and that sort of thing, and our loan size is going to average in the $3 to $7 million probably, something like that.

Wilson Jaeggli:

Okay, $3 to $7.  Your 30 to 89 days past due, what is that number please?

Dennis S. Hudson III:

We’ll be filing that with our call report and the like.  It’s not a number we’ve got out there, but I can tell you there’s no substantial change from last quarter.

Wilson Jaeggli:

Okay, that’s great. Thank you very much.

Operator:

Our next question is from Charles Beauregard from McBeau Capital; please go ahead.

Charles Beauregard:

Hi.  I was just wondering a little bit about the other side of the balance sheet, namely the decline in demand deposits that you’ve had.  Could you talk a little bit about that, and is that an area in which your consultants are providing you advice and what the advice might be?

Dennis S. Hudson III:

Well, we’ve been talking about that for over a year. What we have seen is not a decline in a business or a decline in customers but we’ve seen a very clear cut decline in average balances, particularly in our demand deposit area over the last 18 months or so, particularly intensive declines that occurred early in 2007 and, as you dig down and look at it, you will find that entirely related to the declining real estate markets in Florida.  We bank…  We have a lot of relationships with escrow agents, title companies, attorney trust accounts and the like and those really drove down average balances in the context of the last year plus. That seems to be stabilizing. I think we have talked about it stabilizing the last quarter or two.  

The work that we mentioned with our consultants has to do with the fact that we have a remarkable consumer deposit franchise in our footprint. Today we have more branch locations in our core legacy markets than Wachovia and Sun Trust and all the very large players in those markets.  We have a remarkable footprint; we have a remarkable franchise within the footprint; and we think looking ahead over the next couple of years, it’s important to bring increased focus to the further development and growth of that existing franchise.  So we’ve worked with some folks, really over the last six months or so, to bring greater focus on activities we need to undertake to continue to support and grow our retail franchise.  We do that because we think it’s going to be a more difficult environment on the commercial side of things here over the next couple of years.

Charles Beauregard:

Thank you very much.

Dennis S. Hudson III:

Sure.

Operator:

Next question is from Gary Tenner from SunTrust Robinson Humphrey; please go ahead.

Gary Tenner:

Morning.

Dennis S. Hudson III:

Good morning.

Gary Tenner:

Just a couple of questions. The first related to that condo credit that you said is 100% completed, and I think you said you have initiated the foreclosure process on it.  What is your bias on that type of credit in terms of holding it for some period of time and selling the units and getting made whole, versus selling it for some sort of discount and sort of clearing it off the books?  How do you view that and what type of secondary market is there right now for that product?

Dennis S. Hudson III:

You want to answer that, Russ?

Russ Holland:

On that particular project and any project like that, we would seek to the sell the loan or the asset in hold to a bulk purchaser.  We would not be contemplating holding any real estate or selling out retail.

Gary Tenner:

Do you have a sense from folks that you’ve talked to, what sort of discount the secondary markets looking for on a finished condo project in your market?

Jean Strickland:

We valued it on a bulk sale basis.  We take the most conservative approach to the valuation, which is the bulk sale, so we believe that we considered the fact that it would be a bulk sale and there would be a discount in our valuation.

Dennis S. Hudson III:

Right. But in answer to your question, I mean there’s a lot of liquidity out there and the pricing is all over the board. I can tell you that we have sold a handful of loans over the last couple of quarters and those have been sold generally at par, but we have had all kinds of offers that were substantially lower than that as well.  So it’s kind of a “wild west” out there in terms of offers for loans right now….

Gary Tenner:

Right.

Dennis S. Hudson III:

The key is for us to take a realistic view of the valuation of that collateral, those kinds of pieces of collateral, and to make sure that we have it booked at a number that we feel is very supportable.

Gary Tenner:

Great. I think I missed this at the outset, Denny, you had sort of given the top three components of NPLs.

Dennis S. Hudson III:

Yeah.

Gary Tenner:

I caught the last two, which were the condo and the 6.5% individual consumer…

(Cross talk)

Dennis S. Hudson III:

I think I said about 50 percent of it was either land or residential developed land, which is about 50 percent. About 30 percent is in true commercial real estate-type credit or commercial land, nonresidential in other words.  I mentioned that oddly enough the bulk of that 30 percent are actually related to borrowers; although, it may be a commercial piece of property, they are borrowers who are themselves, unfortunately, entangled in large residential exposures that we may not have on our books.  

Gary Tenner:

Great. Thanks.

Dennis S. Hudson III:

So they’re experiencing stress on that side of their business and are unable to perform satisfactorily even on a commercial piece.

Gary Tenner:

Okay great.  Just one last question regarding the public funds deposits. We’ve seen from a couple banks in Florida this quarter that, as you’ve pointed out, there have been some issues with the state pools.  Can you quantify what the addition was in public funds in the quarter?  If I missed that, I apologize.

Dennis S. Hudson III:

I don’t think we had that number, that we gave, but it’s…

William Hahl:

It’s approximately…  If you recall, Gary, we get pretty good seasonal deposits from our municipalities. Just the state pool is probably in the range of $30 to $50 million additional that came in.  

Dennis S. Hudson III:

So the growth in deposits was seasonal impacts from some of our institutional clients, as Bill said, and we also had this double whammy with the state pool, people expressing concern over that, and justifiably so.  But the other issue is just general seasonal growth in all deposit categories.

Gary Tenner:

Great, thanks for the color.

Operator:

The next question is from Tom Wasserman from Wasserman & Associates; please go ahead.

Tom Wasserman:

Hello.

Dennis S. Hudson:

Hello.

Tom Wasserman:

This is kind of naïve question; I’m not an analyst, but does your goodwill asset having any participation in the strong capital ratios you referred to?  Also, when I think about the capital to total assets ratio, how does that compare in your mind’s eye to other banks and, for instance, to what a regulator might think of as a strong ratio in that particular one?  

Dennis S. Hudson III:

Well, the ratios I was referring to really would have been our Tier I to total assets or adjusted assets ratio.  I think we indicated that it’s in excess of 10 percent.  Our total risk based ratio—these are two very critical ratios to regulators—is at approximately 12 percent.  The minimum to be considered “well capitalized” by regulators on total risk based is 10 percent, and we are at 12 percent, roughly.  The minimum for banking regulators on Tier I is 6 percent, and we are at 10 percent.  So we are significantly above from those minimum numbers.  Part of the reason we have had some improvement in our capital ratios involves some trust-preferreds that we took down at midyear in ’07. So you add all that together, those are all included in the numerator of the regulatory ratios, and all of those regulatory ratios haircut out goodwi ll.

Tom Wasserman:

Ah.  Thank you very much and…

Dennis S. Hudson III:

Our total equity to assets, which would include, would not be haircutted with goodwill, is I believe around 9.5 percent, something like that.  That might be a number you might be familiar with.  

Tom Wasserman:

Thanks a lot for that explanation, and I was pleased to hear your comments on your dividend.

Dennis S. Hudson III:

Thank you.

Operator:

Our next question is from David Bishop from Stiefel Nicolaus; please go ahead.

David Bishop:

Good morning, Denny. How you doing?

Dennis S. Hudson III:

Morning.

David Bishop:

I came in late, so I apologize if you’ve covered this already, but given the pretty significant easing by the Fed over the past couple weeks, are you seeing any response from some of your in-market competitors there who have, quite frankly, been pretty aggressive in terms of posting some relatively high CD specials out in the market?  Have you seen them back off at all as of late or the past week or two?

Dennis S. Hudson III:

It’s probably a little early.  Bill can comment in a second.  I’ll point out that it looks like we won’t have to worry about Countrywide, hopefully, which has actually been advertising nationwide. They have an office, I think one office, in one of our markets.  We definitely have seen some improvability, sort of general color on that.

William Hahl:

Yeah, before the Fed eased, we saw some easing from some of the competitors.  As Denny mentioned, Countrywide was at 5.65 and they were, right before the ease…

Dennis S. Hudson III:

This would be like a CD rate?

William Hahl:

Yeah, 5.65 for seven months, I think it was.  They were advertising 5 percent pre-Fed rate cut—whether they were anticipating that or not or whether it was the acquisition or whatever, I don’t know.  Bank United had backed down their rates as well; they were at 5.25.  National City was advertising at 5.25 for four years.  So as Denny mentioned, it’s really too early.  We haven’t seen any reaction yet from that.  We are hopeful that not only the CD rates will be affected, but we’ll see some change in the money market rate offerings as well, because they have been quite high. They were teaser rates, 30 and 90 or 90 and 180 days in the 5 percent range.

Dennis S. Hudson III:

I would point out that with some of the problems that have been experienced in money market funds, not bank deposits but funds, you’re really starting to see those rates get affected too.  So I can tell you, we are going to have to work hard to push those rates down, because that needs to happen.  

David Bishop:

Then in terms of credit, obviously on our end there has been worry about the spillover effect to the commercial consumer side there.  I guess as you scrub the books there, what are you seeing in terms of early stage delinquencies, maybe more pure commercial non-real estate related type credits, and then on the consumer side, home equity, etcetera.

Dennis S. Hudson:

Well on the commercial side, we have not seen any deterioration that is measurable or has given us concern.  We have a very disciplined process around reviewing all of our exposures on the commercial side, and we have a very disciplined process around responding to evidence of deterioration in terms of our loan grading system, and that triggers all kinds of further review and so forth.  So I feel pretty confident that we have not seen any deterioration there. I will tell you anecdotally that we have noticed higher levels of vacancy in some of the retail centers.  They tend to be the fringe type centers and the like, but no impact on anything that we have.  The good news is the commercial portfolios, not just for us but for most banks, have a very wide variety of vintages associated with them.  Those credits are originated over a fairly long period of time, or tend to be, and so you just don’t see a concentration around any kind of valuation problem or anything like that which you might see in the residential exposures that banks have.  So we are not anticipating anything at this point.  Internally, we have expressed extreme caution in certain aspects of commercial development.  In fact, now there are very few parts of that market that we are promoting at all.  In terms of growth, we’re very cautious.

David Bishop:

Thank you.

Dennis S. Hudson III:

I’m sorry, Jean, Doug, did you have anything you would like to add?

Jean Strickland:

Well, we did undertake a review of our equity line portfolio to just make sure that we…

Dennis S. Hudson III:

Yeah, we’ve looked over…  We have a very small home equity portfolio—it tends to be amortizing loans more so than lines. We have looked at that over the last quarter and haven’t had any wide-spread issues there that have arisen to give us any concern.  We have seen some evidence of slower payments on some of our consumer portfolios, but they are very, very small and have not risen to any concerning level or anything like that.  It really is just a function of what’s happening in the residential market in terms of employment and the like.  But no major concerns at all, and our performance and statistics continue to significantly outperform the national and regional numbers.  Hope that answers it.

David Bishop:

Yes. I appreciate the color.

Operator:

Our next question is from Al Savastano from Fox-Pitt Kelton; please go ahead.

Al Savastano:

Morning guys.  How are you?

Dennis S. Hudson III:

Good Morning.

William Hahl:

Morning.

Al Savastano:

Just a question on reserving methodology.  You boosted reserves quite a bit in the third quarter.  Going forward, the reserves to loans ratio, can we expect that to increase if problem credits arise, or the reserve you set up will that bleed down?

Dennis S. Hudson III:

Well, all I can tell you is that we have a basket of loans that we have been concerned about for a year and as that basket of loans has matured over the past year and has been affected by what’s going on in the marketplace, we have tried to reflect that deterioration in the reserve building we’ve done over the past year.  The good news is we haven’t seen the size of the basket grow.  It’s actually come down a little bit and what has happened is loans inside that basket have just continued to migrate in terms of our concern.  We are at a point where we’ll just continue to watch that very, very carefully; and if we need to build, we will.  But we don’t presently see that.  So we’ll just have to see how conditions evolve over the next 12 months and see what happens.

Al Savastano:

So just let me make sure I understand completely.  Basically what you’re saying is:  if you have problems pop up outside of what you already know, that basket you were talking about, then reserves will likely have to go higher?

Dennis S. Hudson III:

I suppose that’s a fair statement.  Again, just to be clear, we have not noticed any growth.  We basically have everything we can imagine in that basket, I guess is all I have to tell you.  We have been pretty complete, I think, in the work we’ve been working on, not just in the last quarter, but in the context of the last 12 plus months.  

Al Savastano:

Thank you.

Jean Strickland:

I think it’s fair to point out that market conditions continue to play a role in what happens with those credits and in fact others; so if we continue to see deterioration in the market, we will reflect it in our financials appropriately.  

Dennis S. Hudson III:

Right.

Operator:

There are no further questions.

Dennis S. Hudson III:

Okay.  Well thank you very much for your attendance today.  Seacoast today continues to trade, I think, at a remarkable level relative to the core franchise value of our Company, and we will continue to grow that core franchise out over the next year and look forward to our next call. Thank you.

Operator:

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

Please Note:

* Proper names/organizations spelling not verified.

EX-99.3

EXHIBIT 99.3

To 8-K/A dated January 31, 2008

Seacoast Banking Corporation of Florida

Fourth Quarter 2007

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 deposits, 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 more difficult, time-consuming or costly than expected; th e 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.

Underlying Results Remain Solid – Reflects Strong & Diverse Franchise

		2007
(Dollars in thousands)	Q-2			Q-3		Q-4
Net Income (GAAP)	$4,808		$0.25	$  285	$0.01	$1,903	$0.10
Provision for loan losses	753		0.04	5,145	0.27	2,326	0.12
Operating earnings pre-provision	$5,561		$0.29	$5,430	$0.28	$4,229	$0.22

Revenue Growth

(Dollars in thousands)	QTR4 07	QTR3 07	Growth	% Growth
Net Interest Income	$ 20,724	$ 21,147	$   (423)	(2.0	)%
Noninterest Income	5,959	6,019	(60)	(1.0	)
Total Revenues	$ 26,683	$ 27,166	$(483)	(1.8	)%

•

Excludes Securities Gains (Losses)

•

Calculated on a Fully Taxable Equivalent Basis

Average Quarterly Deposits

(Dollars in millions)	Q1-2007	Q2-2006	Q3-2007	Q4-2007
Total Deposits	$1,858	$1,872	$1,852	$1,901

Average Loans, Net of Unearned Income

(Dollars in millions)	Q1-2007	Q2-2006	Q3-2007	Q4-2007
Average Loans	$1,748	$1,783	$1,867	$1,914

Margin Declines Due to Nonaccrual Loan Increases

(Dollars in thousands)	Q1-07	Q2-07	Q3-07	Q4-07
Net Interest Margin	3.92%	4.09%	3.94%	3.71%
Net Interest Income	$21,432	$21,468	$21,147	$20,724

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

Service Area

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Seminole County

•

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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Broward 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