EX-99.1 2 v326920_ex99-1.htm EXHIBIT 99.1

 

EXHIBIT 99.1

To Form 8-K dated October 25, 2012

 

 

NEWS RELEASE

 

SEACOAST BANKING CORPORATION OF FLORIDA

 

 

 

Dennis S. Hudson, III

Chairman and Chief Executive Officer

Seacoast Banking Corporation of Florida

(772) 288-6085

 

William R. Hahl

Executive Vice President/

Chief Financial Officer

(772) 221-2825

 

 

SEACOAST REPORTS IMPROVEMENTS FOR

THE THIRD QUARTER

 

Continued acceleration in new households, deposit and fee income growth

·Total households increase 6.3 percent year over year
·Strong growth in noninterest bearing deposits of 26.2 percent over prior year
·Fee based revenues up 20.7 percent year over year

 

Credit quality improvements continue in the quarter

·Nonperforming loans decline by 8.3 percent compared to last quarter
·Other real estate owned down 62.5 percent compared to 2011

 

Profitability improvement plan announced

·Core costs down $727,000 versus second quarter 2012
·Targeting $7.4 million in cost reduction in 2013

 

 

STUART, FL., October 25, 2012 – Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCF), today reported net income for the third quarter of 2012 totaling $447,000, compared to net income of $2,648,000 for the third quarter a year ago. The net loss for the first nine months of 2012 totaled $950,000, compared to net income of $4,119,000 for 2011.

 

 
 

 

The net loss that is available to Common shareholders for the third quarter and year to date 2012 totaled $490,000, or $0.01 diluted earnings per share (DEPS) and $3,761,000, or $0.04 DEPS, respectively, compared to net income of $0.02 DEPS and $0.01 DEPS a year ago for the same periods, respectively.

 

For the first nine months of 2012, net income was impacted by our decision earlier in the year to accelerate the reduction of problem loans and foreclosed properties. We took this action in part to take advantage of recent improvements in market conditions. Foreclosed properties were reduced 62.5 percent over the prior year. Compared to last quarter, nonperforming loans were reduced by 8.3 percent, and are expected to continue to decline over the next two quarters. Loans classified as restructured fell by 39.3 percent when compared with the prior year and are expected to continue to decline. Net income for the current quarter was also impacted by nonrecurring charges associated with branch consolidations, staff reductions and other cost reductions as part of our plan to restore higher levels of profitability in 2013. We expect to book additional one-time charges totaling approximately $1.0 million in the fourth quarter related to branch consolidations.

 

Profitability Improvement Plan for 2013

 

During the quarter we completed and began implementing a focused plan to improve profitability in 2013 and beyond. The plan contains over 100 separate elements designed to achieve meaningful improvements through a balanced focus on expense reductions and revenue enhancements. Each element aligns with our core strategy and value proposition and has been carefully designed to support and enhance our successful growth initiatives.

 

As part of our profitability improvement plan, we completed an evaluation of our overhead structure, and are in the process of implementing reductions in expenses expected to total $7.4 million in 2013. Approximately $4.9 million of the reduction is related to core operating expenses of which $3.3 million have been implemented and will fully impact the first quarter of 2013. An additional $1.7 million in reduced annual core operating costs are expected to be implemented in the first and second quarters of 2013. In addition, we project noncore credit related expenses, primarily losses on OREO and asset disposition expense, will be reduced by $2.5 million in 2013.

 

The plan also includes revenue and growth initiatives in response to improving market conditions. These include making additional investments in people to increase our lending capacity in our commercial and business banking lines and expanding growth initiatives related to our mortgage business. These investments are expected to support an acceleration of our loan production in 2013. Our successful retail and business deposit growth initiatives have also been expanded to help drive further increases in our households, margins and fees.

 

“We intend to bring our expense structure back into line with better performing peers in 2013 as our credit costs continue to abate and as our core expense reductions and expanded revenue growth initiatives take hold,” said Dennis S. Hudson, Chief Executive Officer. “We are pleased with our execution success to date around our growth initiatives as evidenced by our expanding households, acceleration of our mortgage production and recent improvements in business and commercial loan production. We intend to leverage this success with our profit improvement plan to create greater value for shareholders in 2013.”

 

 
 

 

Total revenues, excluding securities gains, net increased 7.6 percent annualized on a linked quarter basis as a result of improving deposit related fee income, improved deposit mix from the Company’s retail and small business deposit growth initiatives, and increased mortgage banking fees from improvements in residential loan production. Total revenues for the first nine months this year are up $1.1 million compared to the prior year.

 

(Dollars in thousands)   2012 Third Quarter    2011 Third Quarter    Percent Chage 
Customer Relationship Funding (Period End)               
Demand deposits (noninterest bearing)  $409,145   $324,256    26.2%
NOW   420,477    391,318    7.5 
Money market accounts   348,275    327,654    6.3 
Savings accounts   158,208    128,543    23.1 
Time certificates of deposit   343,361    489,503    (29.9)
Total Deposits   1,679,466    1,661,274    1.1 
Sweep repurchase agreements   122,393    106,562    14.9 
Total core customer funding (1)   1,458,498    1,278,333    14.1 

(1)Total deposits and sweep repurchase agreements, excluding certificates of deposits.

 

Retail and business household growth has improved as a result of the Company’s growth initiatives and resources added over the past nine months to attract new commercial loan and business deposit accounts. New household acquisition was strong again during the third quarter 2012. New personal retail checking relationships opened during the quarter rose 10.4 percent compared to the same quarter in 2011.  Likewise, new commercial business checking deposit relationships opened increased by 8.7 percent compared with the same quarter one year ago.  Along with the new relationships, our programs have improved market share, increased average services per household and improved customer retention.

 

Since initial implementation of our retail growth initiatives in 2009, new retail checking deposit households and the average services per household have increased 53.9 percent and 20.5 percent, respectively. The program has produced significant growth in deposit related fee income, which has increased at an 8.7 percent compounded growth rate since the third quarter of 2010. The program has also significantly improved deposit mix and lowered the cost of deposits.

 

Our focused plan to develop our deposit franchise and deepen our residential mortgage production capacity has produced double digit revenue growth in retail fees, mortgage fees and no cost deposits. These investments in revenue growth and franchise development together, with new investments in business and commercial revenue growth initiatives, have positioned us to benefit from the improving housing market and economic conditions, which will help offset the negative impacts of much lower asset yields as a result of the Federal Reserve’s actions.

 

 
 

  

Other results for third quarter 2012:

 

·Total revenues (excluding securities gains, net) increased $405,000 linked-quarter to $21.6 million, an increase of 7.6 percent annualized.
·Service charges on deposits accounts increased 8.9 percent linked-quarter as a result of 7,453 new households over the first nine months, up 20.0 percent compared to last year.
·Interchange income for the quarter totaled $1,119,000, up $150,000 or 15.5 percent compared to the prior year’s results, reflecting the growth in new deposit accounts.
·Mortgage banking revenues grew as a result of expanded capacity and focused growth initiatives increasing year-over-year by $599,000 or 107.7 percent to $1,155,000 for the quarter.
·Average checking and savings deposits grew 13.5 percent over the past year.
·Noninterest bearing checking balances totaled 23.5 percent of average deposits for the third quarter compared with 19.3 percent the prior year. Noninterest bearing checking balances grew by 26.2 percent over the past year.
·Total deposits, excluding time deposits over $100,000 and brokered deposits, comprise 91.0 percent of deposits versus 86.0 percent a year ago. Core deposits grew by 14.0 percent over the past year.
·Average cost of deposits totaled 0.26 percent, down 11 basis points from the second quarter of 2012 and 39 basis points lower compared to the prior year.

 

Average earning assets are up $54 million from the prior year with average loans up $26 million on retained loan production of $261 million over the last twelve months. Over the last nine months, retained loan production totaled $198 million. New loan growth has been concentrated in smaller average balance commercial loans and residential home purchase transactions consistent with our concentration management objectives. Offsetting loan growth has been nonperforming loan resolutions, refinancing and early payoffs as a result of the low rate environment. Total loans declined to $1.202 billion at September 30, 2012, down $18.9 million compared to the prior quarter impacted by lower nonperforming loans ($4.0 million) and early payoffs of larger commercial loans ($19.7 million). Early commercial real estate loan payoffs totaled $16.9 million for the third quarter with the average loan size of $4.2 million, further reducing our overall concentration and credit concentration risks. Total loans (including available for sale) outstanding increased by $15.1 million year-over-year.

 

The allowance for loan losses remains strong at 1.92 percent compared with 2.02 percent the prior quarter and 2.35 percent the prior year. The provision for loan losses year to date totals $9.7 million compared to net charge offs of $12.1 million for the first nine months of 2012 and $10.9 million for 2011.

 

Nonperforming assets totaled $53.3 million at quarter end, down $3.0 million and $2.4 million compared to both a year earlier and last quarter, respectively. OREO declined $14.8 million compared to the third quarter 2011 and is the result of improving valuations allowing for more aggressive OREO liquidation activities. Nonaccrual loans and accruing loans delinquent 90 days or more fell from second quarter 2012 to 3.70 percent of loans. Early stage delinquencies (accruing loans 30–89 days past due) remained nominal at 0.29 percent of loans outstanding.

 

 
 

 

Salary wages and benefits, excluding severance, are higher compared to the prior year’s third quarter due to incentive compensation related to improved revenue growth discussed above, and higher health care costs. Total core operating expenses (total noninterest expense excluding severance, organizational changes, branch closures, net losses on OREO and asset disposition expenses) totaled $18.8 million for the quarter, down $727,000 from the second quarter 2012, but higher by $1.2 million compared to the third quarter 2011. Organizational changes and branch closures completed during the third quarter are expected to reduce core operating expenses further in 2013.

 

(Dollars in thousands)  Q-3
2012		  Q-2
2012		  Q-1
2012		  Q-4
2011		  Q-3
2011
Noninterest Expense:                         
                          
Salaries and wages  $7,442   $7,435   $7,055   $7,301   $6,902 
Employee benefits   1,924    1,916    2,010    1,447    1,391 
Outsourced data processing costs   1,923    1,834    1,721    1,677    1,685 
Telephone / data lines   299    297    289    285    286 
Occupancy expense   1,876    1,943    1,882    1,795    1,967 
Furniture and equipment expense   556    607    495    525    555 
Marketing expense   785    677    926    947    551 
Legal and professional fees   1,122    1,637    1,776    1,299    1,496 
FDIC assessments   695    707    706    679    687 
Amortization of intangibles   196    196    201    212    211 
Other   2,018    2,314    2,163    2,264    1,947 
Total Core Operating Expense   18,836    19,563    19,224    18,431    17,678 
                          
Severance and organizational changes   839    0    0    0    0 
Branch consolidation   232    0    0    0    0 
Recovery of prior legal fees   (500)   0    0    0    0 
Net loss on OREO   561    790    1,959    1,254    906 
Asset dispositions expense   364    368    527    275    479 
Total  $20,332   $20,721   $21,710   $19,960   $19,063 

 

 

Noninterest income, excluding securities gains and losses, increased 35.3 percent annualized when compared to the second quarter, reflecting increased revenues from service charges on deposit accounts, marine finance fees, merchant income, and mortgage banking fees. As previously indicated, the improvement in market share and programs to grow retail and commercial customer households and investments in future revenue growth initiatives is beginning to produce increased revenues. We are seeing improvements across our business lines and expect increased momentum beginning in the first quarter 2013.

 

(Dollars in thousands)  Q-3
2012		  Q-2
2012		  Q-1
2012		  Q-4
2011		  Q-3
2011
Noninterest Income:                         
Service charges on deposit accounts  $1,620   $1,487   $1,461   $1,599   $1,675 
Trust income   550    564    573    530    541 
Mortgage banking fees   1,155    902    623    680    556 
Brokerage commissions and fees   247    298    234    258    321 
Marine finance fees   279    244    330    333    229 
Interchange income   1,119    1,154    1,071    953    969 
Other deposit based EFT fees   70    84    99    78    71 
Other   639    486    546    452    344 
    5,679    5,219    4,937    4,883    4,706 
Securities gains, net   48    3,615    3,374    1,083    137 
Total  $5,727   $8,834   $8,311   $5,966   $4,843 

 

 
 

  

The net interest margin stabilized at 3.17 percent in the third quarter 2012 the same compared to the second quarter of 2012 as a result of lower on balance sheet liquidity, better deposit mix and lower costs for interest bearing liabilities. Interest bearing deposit costs decreased 12 basis points to 0.35 percent in the third quarter 2012 and the total cost of interest bearing liabilities decreased from 0.59 percent for the second quarter to 0.49 percent in the third quarter. The mix in deposits continues to improve as new households are on-boarded with average checking and savings deposits (excluding all time deposits) rising to 78.7 percent of deposits from 69.5 percent a year ago. Checking and savings deposits averaged $1.321 billion for the third quarter of 2012, up $157 million or 13.5 percent compared to third quarter 2011. Total average deposits increased $4.5 million over the year to $1.680 billion with a $152 million decline in average time deposits attributable to the planned runoff of brokered and single service time deposit customers.

 

The Company will host a conference call on Friday, October 26, 2012 at 9:00 a.m. (Eastern Time) to discuss its earnings results and business trends. Investors may call in (toll-free) by dialing (888) 517-2458 (access code: 6117222; leader: Dennis S. Hudson). Charts will be used during the conference call and may be accessed at the Company’s website at www.seacoastbanking.net by selecting Presentations under the heading Investor Services. A replay of the conference call will be available beginning the afternoon of October 26 by dialing (888) 843-7419 (domestic), using the passcode 6117222.

 

Alternatively, individuals may listen to the live webcast of the presentation by visiting the Company’s website at www.seacoastbanking.net. The link to the live audio webcast is located in the subsection Presentations under the heading Investor Relations. Beginning the afternoon of October 26, 2012, an archived version of the webcast can be accessed from this same subsection of the website. This webcast will be archived and available for one year.

 

Seacoast Banking Corporation of Florida has approximately $2.1 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.

 

 
 

 

Cautionary Notice Regarding Forward-Looking Statements

 

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

 

Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance or achievements of Seacoast to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. You should not expect us to update any forward-looking statements.

 

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

 

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, 2011 under “Special Cautionary Notice Regarding Forward-Looking Statements” and “Risk Factors”, and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC’s Internet website at http://www.sec.gov.

 

 
 

 

FINANCIAL  HIGHLIGHTS  (Unaudited)
SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES   
             
   Three Months Ended  Nine Months Ended
(Dollars in thousands,  September 30,  September 30,
except share data)  2012  2011  2012  2011
Summary of Earnings            
Net income (loss)  $447   $2,648   $(950)  $4,119 
Net income (loss) available to common shareholders   (490)   1,711    (3,761)   1,308 
                     
Net interest income  (1)   15,995    16,925    48,736    50,039 
                     
Performance Ratios                    
Return on average assets-GAAP basis (2), (3)   0.08%   0.51%   (0.06)%   0.27%
Return on average tangible assets (2), (3), (4)   0.11    0.54    (0.04)   0.30 
                     
Return on average shareholders' equity-GAAP basis (2), (3)   1.09    6.33    (0.76)   3.32 
                     
Net interest margin  (1), (2)   3.17    3.44    3.22    3.43 
                     
Per Share Data                    
Net income (loss) diluted-GAAP basis  $(0.01)  $0.02   $(0.04)  $0.01 
Net income (loss) basic-GAAP basis   (0.01)   0.02    (0.04)   0.01 
                     
Cash dividends declared   0.00    0.00    0.00    0.00 

 

   September 30,  Increase/
   2012  2011  (Decrease)
Credit Analysis               
Net charge-offs year-to-date  $12,106   $10,885    11.2%
Net charge-offs to average loans   1.32%   1.19%   10.9 
Loan loss provision year-to-date  $9,660   $1,542    526.4 
Allowance to loans at end of period   1.92%   2.35%   (18.3)
                
Nonperforming loans  $44,450   $32,627    36.2 
Other real estate owned   8,888    23,702    (62.5)
Total non-performing assets  $53,338   $56,329    (5.3)
                
Restructured loans (accruing)  $44,179   $72,751    (39.3)
                
Nonperforming assets to loans and other real               
  estate owned at end of period   4.40%   4.57%   (3.7)
                
Nonperforming assets to total assets   2.56%   2.75%   (6.9)
                
Selected Financial Data               
Total assets  $2,081,693   $2,051,037    1.5 
Securities available for sale (at fair value)   588,248    611,195    (3.8)
Securities held for investment (at amortized cost)   15,556    24,575    (36.7)
Net loans   1,179,359    1,180,147    (0.1)
Deposits   1,679,466    1,661,274    1.1 
Total shareholders' equity   167,209    170,793    (2.1)
Common shareholders' equity   118,775    123,608    (3.9)
Book value per share common   1.25    1.31    (4.6)
Tangible book value per share   1.75    1.78    (1.7)
Tangible common book value per share (5)   1.23    1.28    (3.9)
Average shareholders' equity to average assets   7.84%   8.06%   (2.7)
Tangible common equity to tangible assets (5), (6)   5.63    5.91    (4.7)
                
Average Balances (Year-to-Date)               
Total assets  $2,118,784   $2,056,344    3.0 
Less: intangible assets   1,988    2,814    (29.4)
Total average tangible assets  $2,116,796   $2,053,530    3.1 
                
Total equity  $166,066   $165,781    0.2 
Less: intangible assets   1,988    2,814    (29.4)
Total average tangible equity  $164,078   $162,967    0.7 

 

 

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

(6) The ratio of tangible common equity to tangible assets is a non-GAAP ratio used by the investment community to measure capital adequacy.

 

 
 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME  (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES   
             
   Three Months Ended  Nine Months Ended
   September 30,  September 30,
(Dollars in thousands, except per share data)  2012  2011  2012  2011
             
Interest on securities:                    
Taxable  $3,190   $4,750   $10,834   $13,001 
Nontaxable   21    38    68    123 
Interest and fees on loans   14,371    15,315    43,852    47,004 
Interest on federal funds sold and other investments   243    175    727    606 
Total Interest Income   17,825    20,278    55,481    60,734 
                     
Interest on deposits   380    605    1,247    1,840 
Interest on time certificates   738    2,134    3,371    6,789 
Interest on borrowed money   755    671    2,262    2,240 
Total Interest Expense   1,873    3,410    6,880    10,869 
                     
Net Interest Income   15,952    16,868    48,601    49,865 
Provision for loan losses   900    (0)   9,660    1,542 
Net Interest Income After Provision for Loan Losses   15,052    16,868    38,941    48,323 
                     
Noninterest income:                    
Service charges on deposit accounts   1,620    1,675    4,568    4,663 
Trust income   550    541    1,687    1,581 
Mortgage banking fees   1,155    556    2,680    1,460 
Brokerage commissions and fees   247    321    779    864 
Marine finance fees   279    229    853    876 
Interchange income   1,119    969    3,344    2,855 
Other deposit based EFT fees   70    71    253    240 
Other   639    344    1,671    923 
    5,679    4,706    15,835    13,462 
Securities gains, net   48    137    7,037    137 
Total Noninterest Income   5,727    4,843    22,872    13,599 
                     
Noninterest expenses:                    
Salaries and wages   8,103    6,902    22,593    19,987 
Employee benefits   1,924    1,391    5,850    4,428 
Outsourced data processing costs   1,923    1,685    5,478    4,906 
Telephone / data lines   299    286    885    894 
Occupancy   2,080    1,967    5,905    5,832 
Furniture and equipment   570    555    1,672    1,766 
Marketing   785    551    2,388    1,970 
Legal and professional fees   714    1,496    4,127    4,838 
FDIC assessments   695    687    2,108    2,334 
Amortization of intangibles   196    211    593    635 
Asset dispositions expense   364    479    1,259    2,006 
Net loss on other real estate owned and repossessed assets   561    906    3,310    2,497 
Other   2,118    1,947    6,595    5,710 
Total Noninterest Expenses   20,332    19,063    62,763    57,803 
                     
Income (Loss) Before Income Taxes   447    2,648    (950)   4,119 
Provision for income taxes   0    0    0    0 
                     
Net Income (Loss)   447    2,648    (950)   4,119 
Preferred stock dividends and accretion on preferred stock discount   937    937    2,811    2,811 
Net Income (Loss) Available to Common Shareholders  $(490)  $1,711   $(3,761)  $1,308 
  
Per share of common stock:                    
                     
Net income (loss) diluted  $(0.01)  $0.02   $(0.04)  $0.01 
Net income (loss) basic   (0.01)   0.02    (0.04)   0.01 
Cash dividends declared   0.00    0.00    0.00    0.00 
                     
Average diluted shares outstanding   94,567,327    93,878,199    94,471,866    93,611,223 
Average basic shares outstanding   93,777,662    93,524,950    93,688,003    93,492,180 

 

 
 

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES   
          
   September 30,  December 31,  September 30,
(Dollars in thousands, except share data)  2012  2011  2011
          
Assets               
Cash and due from banks  $30,935   $41,136   $29,307 
Interest bearing deposits with other banks   141,783    125,945    87,578 
Total  Cash and Cash Equivalents   172,718    167,081    116,885 
                
Securities:               
Available for sale (at fair value)   588,248    648,362    611,195 
Held for investment (at amortized cost)   15,556    19,977    24,575 
Total Securities   603,804    668,339    635,770 
                
Loans available for sale   28,042    6,795    6,897 
                
Loans, net of deferred costs   1,202,478    1,208,074    1,208,548 
Less: Allowance for loan losses   (23,119)   (25,565)   (28,401)
Net Loans   1,179,359    1,182,509    1,180,147 
                
Bank premises and equipment, net   34,884    34,227    34,599 
Other real estate owned   8,888    20,946    23,702 
Other intangible assets   1,697    2,289    2,501 
Other assets   52,301    55,189    50,536 
   $2,081,693   $2,137,375   $2,051,037 
                
Liabilities and Shareholders' Equity               
Liabilities               
Deposits               
Demand deposits (noninterest bearing)  $409,145   $328,356   $324,256 
NOW   420,477    469,631    391,318 
Savings deposits   158,208    133,578    128,543 
Money market accounts   348,275    319,152    327,654 
Other time certificates   192,297    244,886    257,486 
Brokered time certificates   8,429    4,558    5,252 
Time certificates of $100,000 or more   142,635    218,580    226,765 
Total Deposits   1,679,466    1,718,741    1,661,274 
                
Federal funds purchased and securities sold under               
agreements to repurchase, maturing within 30 days   122,393    136,252    106,562 
Borrowed funds   50,000    50,000    50,000 
Subordinated debt   53,610    53,610    53,610 
Other liabilities   9,015    8,695    8,798 
    1,914,484    1,967,298    1,880,244 
                
Shareholders' Equity               
Preferred stock - Series A   48,434    47,497    47,185 
Common stock   9,481    9,469    9,470 
Additional paid in capital   222,744    222,048    221,797 
Accumulated deficit   (117,914)   (114,152)   (115,764)
Treasury stock   (101)   (13)   (6)
    162,644    164,849    162,682 
Accumulated other comprehensive gain, net   4,565    5,228    8,111 
Total Shareholders' Equity   167,209    170,077    170,793 
   $2,081,693   $2,137,375   $2,051,037 
                
Common Shares Outstanding   94,810,684    94,686,801    94,696,906 

 

  

Note:  The balance sheet at December 31, 2011 has been derived from the audited financial statements at that date.

 

 
 

 

CONSOLIDATED QUARTERLY FINANCIAL  DATA  (Unaudited)
                
   QUARTERS   
   2012  2011  Last 12
(Dollars in thousands, except per share data)  Third  Second  First  Fourth  Months
Net income  $447   $(2,335)  $938   $2,548   $1,598 
                          
Operating Ratios                         
Return on average assets-GAAP basis (2),(3)   0.08%   (0.44)%   0.18%   0.48%   0.08%
Return on average tangible assets (2),(3),(4)   0.11    (0.42)   0.20    0.51    0.10 
                          
Return on average shareholders' equity-GAAP basis (2),(3)   1.09    (5.56)   2.26    6.17    0.97 
                          
Net interest margin (1),(2)   3.17    3.17    3.33    3.42    3.27 
Average equity to average assets   7.77    7.90    7.85    7.86    7.84 
                          
Credit Analysis                         
Net charge-offs  $2,416   $6,275   $3,415   $3,268   $15,374 
Net charge-offs to average loans   0.79%   2.05%   1.13%   1.07%   1.26%
Loan loss provision  $900   $6,455   $2,305   $432   $10,092 
Allowance to loans at end of period   1.92%   2.02%   2.01%   2.12%     
                          
Restructured loans (accruing)  $44,179    54,842    57,665    71,611      
                          
Nonperforming loans  $44,450    48,482    41,716    28,526      
Other real estate owned   8,888    7,219    15,530    20,946      
Nonperforming assets  $53,338   $55,701   $57,246   $49,472      
Nonperforming assets to loans and other                         
real estate owned at end of period   4.40%   4.53%   4.65%   4.03%     
Nonperforming assets to total assets   2.56    2.64    2.64    2.31      
Nonaccrual loans and accruing loans 90 days or more                         
past due to loans outstanding at end of period   3.70    3.97    3.43    2.36      
                          
Per Share Common Stock                         
Net income (loss) diluted-GAAP basis  $(0.01)  $(0.03)  $0.00   $0.02   $(0.02)
Net income (loss) basic-GAAP basis   (0.01)   (0.03)   0.00    0.02   $(0.02)
                          
Cash dividends declared   —      —      —      —     $—   
Book value per share common   1.25    1.24    1.30    1.29      
                          
Average Balances                         
Total assets  $2,096,694   $2,133,713   $2,126,186   $2,085,466      
Less: Intangible assets   1,793    1,988    2,184    2,392      
Total average tangible assets  $2,094,901   $2,131,725   $2,124,002   $2,083,074      
                          
Total equity  $162,902   $168,457   $166,874   $163,857      
Less: Intangible assets   1,793    1,988    2,184    2,392      
Total average tangible equity  $161,109   $166,469   $164,690   $161,465      

 

 

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

 

   September 30,  December 31,  September 30,
SECURITIES  2012  2011  2011
U.S. Treasury and U.S. Government Agencies  $1,711   $1,724   $4,226 
Mortgage-backed   585,632    645,471    603,089 
Obligations of states and political subdivisions   905    1,167    1,158 
Other securities   0    0    2,722 
Securities Available for Sale   588,248    648,362    611,195 
                
Mortgage-backed   7,397    12,315    16,117 
Obligations of states and political subdivisions   6,659    6,662    7,458 
Other securities   1,500    1,000    1,000 
Securities Held for Investment   15,556    19,977    24,575 
Total Securities  $603,804   $668,339   $635,770 

 

 

   September 30,  December 31,  September 30,
LOANS  2012  2011  2011
Construction and land development  $56,213   $49,184   $47,653 
Real estate mortgage   1,036,224    1,054,599    1,055,276 
Installment loans to individuals   51,564    50,611    51,736 
Commercial and financial   58,222    53,105    53,534 
Other loans   255    575    349 
Total Loans  $1,202,478   $1,208,074   $1,208,548 

 
 

 

AVERAGE BALANCES, YIELDS AND RATES (1)   (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES            
                   
   2012  2011
   Third Quarter  Second Quarter  Third Quarter
   Average  Yield/  Average  Yield/  Average  Yield/
(Dollars in thousands)  Balance  Rate  Balance  Rate  Balance  Rate
                   
Assets                              
Earning assets:                              
Securities:                              
Taxable  $572,328    2.23%  $552,501    2.40%  $624,811    3.04%
Nontaxable   1,972    6.48    2,055    6.81    3,392    6.72 
Total Securities   574,300    2.24    554,556    2.41    628,203    3.06 
                               
Federal funds sold and other                              
investments   209,461    0.46    248,944    0.43    127,072    0.54 
                               
Loans,  net   1,223,313    4.68    1,231,239    4.81    1,197,686    5.09 
                               
Total Earning Assets   2,007,074    3.54    2,034,739    3.63    1,952,961    4.13 
                               
Allowance for loan losses   (24,807)        (23,677)        (30,666)     
Cash and due from banks   29,227         31,795         27,044      
Premises and equipment   35,003         34,197         34,782      
Other assets   50,197         56,659         70,735      
                               
   $2,096,694        $2,133,713        $2,054,856      
                               
                               
Liabilities and Shareholders' Equity                              
Interest-bearing liabilities:                              
NOW (2)  $419,007    0.15%  $423,240    0.16%  $394,399    0.24%
Savings deposits   157,577    0.11    152,333    0.10    126,800    0.11 
Money market accounts (2)   350,213    0.21    336,392    0.26    320,683    0.41 
Time deposits   358,504    0.82    406,292    1.12    510,755    1.66 
Federal funds purchased and                              
other short term borrowings   140,932    0.24    146,510    0.25    99,311    0.27 
Other borrowings   103,610    2.57    103,610    2.55    103,610    2.31 
                               
Total Interest-Bearing Liabilities   1,529,843    0.49    1,568,377    0.59    1,555,558    0.87 
                               
Demand deposits (noninterest-bearing)   394,467         388,060         322,646      
Other liabilities   9,482         8,819         10,807      
Total Liabilities   1,933,792         1,965,256         1,889,011      
                               
Shareholders' equity   162,902         168,457         165,845      
                               
   $2,096,694        $2,133,713        $2,054,856      
                               
Interest expense as a % of earning assets        0.37%        0.45%        0.69%
Net interest income as a % of earning assets        3.17         3.17         3.44 

 

 

(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.

(2)Certain reclassifications have been made to prior years' presentations to conform to the current year presentation.

 

 
 

 

CONSOLIDATED QUARTERLY FINANCIAL  DATA  (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES   
                
   2012  2011
(Dollars in thousands)  Third Quarter  Second Quarter  First Quarter  Fourth Quarter  Third Quarter
                
Customer Relationship Funding (Period End)                         
Demand deposits (noninterest bearing)  $409,145   $393,681   $394,532   $328,356   $324,256 
NOW accounts   420,477    420,449    436,712    469,631    391,318 
Money market accounts   348,275    346,191    330,409    319,152    327,654 
Savings accounts   158,208    156,019    148,068    133,578    128,543 
Time certificates of deposit   343,361    373,244    427,738    468,024    489,503 
Total Deposits   1,679,466    1,689,584    1,737,459    1,718,741    1,661,274 
                          
Sweep repurchase agreements   122,393    139,489    149,316    136,252    106,562 
Total core customer funding (1)   1,458,498    1,455,829    1,459,037    1,386,969    1,278,333 

 

(1)Total deposits and sweep repurchase agreements, excluding certificates of deposits.

 

 
 

 

 

QUARTERLY TRENDS - LOANS AT END OF PERIOD (Dollars in Millions) (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES         
                      
   2011  2012
   1st Qtr  2nd Qtr  3rd Qtr  4th Qtr  1st Qtr  2nd Qtr  3rd Qtr
Construction and land development                                   
Residential                                   
Condominiums  $0.5   $-     $-      -     $-     $-     $-   
Townhomes   -      -      -      -      -      -      -   
Single family residences   -      -      -      -      -      -      -   
Single family land and lots   6.6    6.5    6.4    6.2    6.0    5.9    5.8 
Multifamily   6.1    5.7    5.5    5.1    4.9    4.7    4.6 
    13.2    12.2    11.9    11.3    10.9    10.6    10.4 
Commercial                                   
Office buildings   -      -      -      0.2    0.3    -      -   
Retail trade   -      -      -      -      -      -      -   
Land   33.9    10.3    10.2    9.3    9.2    10.7    9.8 
Industrial   -      -      -      -      -      -      -   
Healthcare   -      -      -      -      -      -      -   
Churches and educational facilities   -      -      -      0.1    0.3    0.3    0.7 
Lodging   -      -      -      -      -      -      -   
Convenience stores   0.5    0.6    0.6    1.7    1.4    1.4    -   
Marina   -      -      -      -      -      -      -   
Other   -      -      -      -      -      -      -   
    34.4    10.9    10.8    11.3    11.2    12.4    10.5 
Individuals                                   
Lot loans   20.8    19.4    18.6    17.9    18.4    17.6    16.4 
Construction   7.3    6.7    6.4    8.7    13.5    16.6    18.9 
    28.1    26.1    25.0    26.6    31.9    34.2    35.3 
Total construction and land development   75.7    49.2    47.7    49.2    54.0    57.2    56.2 
                                    
Real estate mortgages                                   
Residential real estate                                   
Adjustable   308.6    314.3    324.4    334.1    341.6    359.4    353.7 
Fixed rate   86.6    88.8    92.8    97.0    96.2    95.4    99.7 
Home equity mortgages   67.7    63.1    63.6    60.2    59.5    58.3    58.4 
Home equity lines   57.4    56.9    55.1    54.9    53.0    50.8    50.6 
    520.3    523.1    535.9    546.2    550.3    563.9    562.4 
Commercial real estate                                   
Office buildings   121.3    120.0    122.0    119.6    118.0    113.4    102.4 
Retail trade   150.6    149.6    146.1    140.6    139.3    128.5    121.1 
Industrial   76.3    68.5    72.5    70.7    70.0    72.0    71.3 
Healthcare   26.6    26.3    29.6    38.8    40.2    42.0    35.8 
Churches and educational facilities   28.6    28.2    27.8    27.4    27.0    26.7    26.2 
Recreation   2.8    2.8    2.7    3.2    3.1    3.1    2.7 
Multifamily   14.2    16.8    15.4    9.4    8.8    8.3    7.8 
Mobile home parks   2.5    2.4    2.2    2.2    2.1    2.1    2.1 
Lodging   21.7    20.0    19.8    19.6    19.4    19.3    19.1 
Restaurant   4.2    4.3    4.3    4.7    4.6    4.7    4.4 
Agricultural   9.2    9.2    8.9    8.8    7.6    7.4    7.3 
Convenience stores   20.1    20.0    19.8    15.1    15.5    15.4    16.6 
Marina   21.7    21.5    21.4    21.3    21.6    21.5    21.4 
Other   27.4    27.3    26.9    27.0    29.3    29.3    35.6 
    527.2    516.9    519.4    508.4    506.5    493.7    473.8 
Total real estate mortgages   1,047.5    1,040.0    1,055.3    1,054.6    1,056.8    1,057.6    1,036.2 
                                    
Commercial & financial   51.5    48.0    53.5    53.1    54.6    56.2    58.2 
                                    
Installment loans to individuals                                   
Automobile and trucks   10.1    9.5    9.2    8.7    8.2    8.1    8.0 
Marine loans   19.4    20.2    21.6    19.9    21.1    20.8    23.0 
Other   20.9    21.6    20.9    22.0    21.5    21.3    20.6 
    50.4    51.3    51.7    50.6    50.8    50.2    51.6 
                                    
Other   0.3    0.4    0.3    0.6    0.2    0.2    0.3 
   $1,225.4   $1,188.9   $1,208.5    1,208.1    1,216.4    1,221.4    1,202.5 

 

 
 

 

QUARTERLY TRENDS - INCREASE (DECREASE) IN LOANS BY QUARTER (Dollars in Millions) (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES         
                      
   2011  2012
   1st Qtr  2nd Qtr  3rd Qtr  4th Qtr  1st Qtr  2nd Qtr  3rd Qtr
Construction and land development                                   
Residential                                   
Condominiums  $(0.4)  $(0.5)  $-     $-     $-     $-     $-   
Townhomes   -      -      -      -      -      -      -   
Single family residences   -      -      -      -      -      -      -   
Single family land and lots   (0.4)   (0.1)   (0.1)   (0.2)   (0.2)   (0.1)   (0.1)
Multifamily   -      (0.4)   (0.2)   (0.4)   (0.2)   (0.2)   (0.1)
    (0.8)   (1.0)   (0.3)   (0.6)   (0.4)   (0.3)   (0.2)
Commercial                                   
Office buildings   -      -      -      0.2    0.1    (0.3)   -   
Retail trade   -      -      -      -      -      -      -   
Land   0.3    (23.6)   (0.1)   (0.9)   (0.1)   1.5    (0.9)
Industrial   -      -      -      -      -      -      -   
Healthcare   -      -      -      -      -      -      -   
Churches and educational facilities   -      -      -      0.1    0.2    -      0.4 
Lodging   -      -      -      -      -      -      -   
Convenience stores   0.3    0.1    -      1.1    (0.3)   -      (1.4)
Marina   -      -      -      -      -      -      -   
Other   -      -      -      -      -      -      -   
    0.6    (23.5)   (0.1)   0.5    (0.1)   1.2    (1.9)
Individuals                                   
Lot loans   (3.6)   (1.4)   (0.8)   (0.7)   0.5    (0.8)   (1.2)
Construction   0.2    (0.6)   (0.3)   2.3    4.8    3.1    2.3 
    (3.4)   (2.0)   (1.1)   1.6    5.3    2.3    1.1 
Total construction and land development   (3.6)   (26.5)   (1.5)   1.5    4.8    3.2    (1.0)
                                    
Real estate mortgages                                   
Residential real estate                                   
Adjustable   5.3    5.7    10.1    9.7    7.5    17.8    (5.7)
Fixed rate   4.0    2.2    4.0    4.2    (0.8)   (0.8)   4.3 
Home equity mortgages   (5.7)   (4.6)   0.5    (3.4)   (0.7)   (1.2)   0.1 
Home equity lines   (0.3)   (0.5)   (1.8)   (0.2)   (1.9)   (2.2)   (0.2)
    3.3    2.8    12.8    10.3    4.1    13.6    (1.5)
Commercial real estate                                   
Office buildings   (0.7)   (1.3)   2.0    (2.4)   (1.6)   (4.6)   (11.0)
Retail trade   (0.9)   (1.0)   (3.5)   (5.5)   (1.3)   (10.8)   (7.4)
Industrial   (1.7)   (7.8)   4.0    (1.8)   (0.7)   2.0    (0.7)
Healthcare   (3.4)   (0.3)   3.3    9.2    1.4    1.8    (6.2)
Churches and educational facilities   (0.2)   (0.4)   (0.4)   (0.4)   (0.4)   (0.3)   (0.5)
Recreation   (0.1)   -      (0.1)   0.5    (0.1)   -      (0.4)
Multifamily   (8.2)   2.6    (1.4)   (6.0)   (0.6)   (0.5)   (0.5)
Mobile home parks   -      (0.1)   (0.2)   -      (0.1)   -      -   
Lodging   (0.2)   (1.7)   (0.2)   (0.2)   (0.2)   (0.1)   (0.2)
Restaurant   (0.3)   0.1    -      0.4    (0.1)   0.1    (0.3)
Agricultural   (1.4)   -      (0.3)   (0.1)   (1.2)   (0.2)   (0.1)
Convenience stores   1.5    (0.1)   (0.2)   (4.7)   0.4    (0.1)   1.2 
Marina   (0.2)   (0.2)   (0.1)   (0.1)   0.3    (0.1)   (0.1)
Other   (0.6)   (0.1)   (0.4)   0.1    2.3    -      6.3 
    (16.4)   (10.3)   2.5    (11.0)   (1.9)   (12.8)   (19.9)
Total real estate mortgages   (13.1)   (7.5)   15.3    (0.7)   2.2    0.8    (21.4)
                                    
Commercial & financial   2.7    (3.5)   5.5    (0.4)   1.5    1.6    2.0 
                                    
Installment loans to individuals                                   
Automobile and trucks   (0.8)   (0.6)   (0.3)   (0.5)   (0.5)   (0.1)   (0.1)
Marine loans   (0.4)   0.8    1.4    (1.7)   1.2    (0.3)   2.2 
Other   -      0.7    (0.7)   1.1    (0.5)   (0.2)   (0.7)
    (1.2)   0.9    0.4    (1.1)   0.2    (0.6)   1.4 
                                    
Other   -      0.1    (0.1)   0.3    (0.4)   -      0.1 
   $(15.2)  $(36.5)  $19.6   $(0.4)  $8.3   $5.0   $(18.9)