EX-99.1 3 v376103_ex99-1.htm EXHIBIT 99.1

EXHIBIT 99.1

To Form 8-K dated April 24, 2014

 

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 $2.3 MILLION IN NET INCOME FOR THE QUARTER

 

·Net income for the quarter increased 24 percent linked quarter and was up 12 percent year over year resulting from lower credit costs and expense management
·Earnings per share was up 50 percent to $.09 compared with $.06 in 2013
·Pretax income was $3.7 million for the quarter compared to $2.0 million in 2013 and $3.1 million in the prior quarter

 

STUART, FL., April 24, 2014 – Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCF), today reported first quarter 2014 net income available to common shareholders of $2.3 million or $0.09 per diluted common share, compared with $1.1 million, or $.06 per diluted common share for 2013. The income resulted from improved earnings and redemption of the company’s preferred stock outstanding on December 31, 2013. Seacoast’s pretax income for the first quarter of $3.7 million was up 83.4 percent compared to a year ago, while net income was $2.3 million compared to $2.0 million for the same quarter last year. There was no tax provision in the prior period due to the impact of the valuation allowance for the company’s deferred tax assets which was subsequently fully recovered in the third quarter of 2013.

 

- continued -
 

 

The improved earnings for the quarter reflect growth in customer deposit and loan relationships, improved credit costs and reduced core operating expenses which were offset by lower mortgage banking revenue and severance costs associated with cost reductions announced in the prior quarter. Additional spending related to customer growth initiatives and increased customer adoption of new digital products were also absorbed during the quarter.

 

Customer Relationship Growth Improves

 

·Average noninterest bearing demand deposits were up $47.3 million, or 10.9 percent compared with the prior year and $18.2 million, or 15.6 percent linked quarter annualized

 

·Ending noninterest bearing demand deposits increased to 28.2 percent of total deposits compared with 22.7 percent for the first quarter 2012

 

·Ending net loan balances increased by 7.5 percent, or $90.7 million compared to first quarter 2013, and $8.8 million linked quarter

 

Additional Cost Reductions Announced

 

As previously announced, we implemented annual cost reductions totaling $1.4 million late in the first quarter which resulted in severance expense totaling $212,000 for the quarter. We have identified and are currently implementing an additional $1.9 million in cost reductions to better align our expense structure as we continue making the investments needed to drive sustainable long term customer growth. We expect our core operating expenses to fall below $17.9 million per quarter when these reductions are fully absorbed starting in the third quarter.

 

- continued -
 

 

Innovation Driving Growth

 

During the quarter spending for new digital products, increased digital adoption and new personnel in marketing and data analytics totaled approximately $860,000 annualized, which we expect to grow to approximately $1.3 million annualized by year end. Growth in new households continued to accelerate with net new households produced during the quarter more than doubling over the same period in the prior year. As of quarter end, 47 percent of our online customers have adopted our mobile product offerings. The total number of services utilized by our retail customers increased to an average of 3.4 per household, primarily due to an increase in debit card activation, direct deposit and mobile banking users. We continue to focus on helping our customers discover more convenient ways to manage their financial lives while we also work to reduce our legacy fixed costs.

 

Acquisition Announced

 

Seacoast also announced today it has entered into a definitive agreement to acquire The BANKshares, Inc., a commercial bank headquartered in Winter Park, Florida, with $656 million in assets. Information concerning the merger is contained in a press release separately issued concurrent with this first quarter earnings release. Seacoast Chairman and CEO Dennis Hudson will discuss the merits of the acquisition during tomorrow’s previously scheduled earnings conference call. Dial in instructions are provided below.

 

- continued -
 

 

“We see enormous opportunities for growth in our markets and throughout Florida. Community banking will continue to be impacted by the transformation in customer convenience that is effecting banks of all sizes. We are working to position Seacoast to grow and prosper as consumers and businesses alike are quickly discovering new and more convenient ways to access and manage their financial lives. We see opportunities to capitalize on these new growth opportunities as we add key personnel in our Central and South Florida markets,” said Dennis S. Hudson III, Chairman and Chief Executive Officer. “Over the past year we have invested significant resources to support this changing environment while cutting legacy costs, which will ultimately be significantly reduced resulting in further improvements to our operating leverage.”

 

Additional detailed information concerning the quarter is presented below.

 

Deposit Growth Continues:

 

Our customer relationship strategy continues to produce low cost funding with retail and business households, which will prove particularly valuable as interest rates increase in the future and result in higher core revenues from both wider margins and increased usage of electronic and digital payment options. Deposit mix continued to improve in the first quarter with noninterest bearing demand deposits increasing to 28.2 percent of total deposits at the end of the first quarter, from 22.7 percent two years earlier. The improved deposit mix resulted in lower total interest expense, which declined $166,000 year over year.

 

- continued -
 

 

(Dollars in thousands)  First 
Quarter
2014		   First
Quarter
2013		   First
Quarter
2012		   2014 vs
2013  
Change		   2014 vs
2012
Change		 
Customer Relationship Funding                         
Demand deposits                         
(noninterest bearing)  $513,925   $453,144   $394,532    13.4%   30.3%
NOW   504,698    482,913    436,712    4.5    15.6 
Money market accounts   337,408    341,216    330,409    (1.1)   2.1 
Savings deposits   202,170    177,213    148,068    14.1    36.5 
Time certificates of deposit   261,594    307,678    427,738    (15.0)   (38.8)
Total deposits   1,819,795    1,762,164    1,737,459    3.3    4.7 
Sweep repurchase agreements   156,136    161,678    149,316    (3.4)   4.6 
Total core customer funding (1)   1,714,337    1,616,164    1,459,037    6.1    17.5 
Demand deposit mix                         
 (noninterest bearing)   28.2%   25.7%   22.7%          
(1)Total deposits and sweep repurchase agreements, excluding certificates of deposits.

 

Credit Quality now at Pre-Crisis Levels:

 

·Restructured loans reduced to $24.5 million, down $16.6 million compared to a year ago;

 

·Nonperforming loans totaled 2.0 percent of loans, compared with 2.1 percent last quarter and 2.9 percent one year ago; and

 

·Nonperforming assets to total assets declined to 1.4 percent, compared to 2.1 percent a year ago.

 

- continued -
 

 

(Dollars in thousands )  First 
Quarter
2014		   Fourth
Quarter
2013		   Third 
Quarter
2013		   Second
Quarter
2013		   First
Quarter
2013		 
                     
Net charge-offs (recoveries)  $(139)  $838   $842   $2,027   $1,517 
Net charge-offs (recoveries) to average loans   (0.04)%   0.26%   0.26%   0.64%   0.49%
                          
Loan loss provision  $(735)  $490   $1,180   $565   $953 
Allowance to loans at end of period   1.48%   1.54%   1.62%   1.59%   1.76%
                          
Restructured loans (accruing)  $24,537   $25,137   $25,509   $29,612   $41,170 
                          
Nonperforming loans  $26,220   $27,672   $28,724   $33,266   $35,208 
Other real estate owned   6,369    6,860    5,589    10,063    10,850 
Nonperforming assets  $32,589   $34,532   $34,313   $43,329   $46,058 
                          
Nonperforming loans to loans outstanding at end of period   2.00%   2.12%   2.27%   2.63%   2.88%
                          
Nonperforming assets to total assets   1.41    1.52    1.60    1.98    2.09 

 

Noninterest Income:

 

Noninterest income fell short of the prior quarter by 6.8 percent primarily due to a decline in mortgage banking fees as a result of lower mortgage demand and lower service charges on deposits resulting from seasonally higher average balances. Both items were also impacted by two fewer days in the first quarter compared to the fourth quarter. Interchange fees were up by 11.0 percent, or $139,000 compared to the same period last year due to higher usage and increased customers.

 

- continued -
 

 

(Dollars in thousands)  First
Quarter
2014		   Fourth
Quarter
2013		   Third
Quarter
2013		   Second
Quarter
2013		   First
Quarter
2013		 
                     
Service charges on deposit accounts  $1,507   $1,778   $1,741   $1,641   $1,551 
Trust income   671    693    667    675    676 
Mortgage banking fees   661    728    1,075    1,256    1,114 
Brokerage commissions and fees   379    461    383    362    425 
Marine finance fees   254    215    283    419    272 
Interchange income   1,403    1,394    1,358    1,388    1,264 
Other deposit based EFT fees   98    80    77    87    98 
Other   585    617    503    507    531 
Total   5,558    5,966    6,087    6,335    5,931 
                          
Securities gains, net   17    0    280    114    25 
   $5,575   $5,966   $6,367   $6,449   $5,956 

 

Noninterest Expenses:

 

Total noninterest expenses of $18.8 million decreased by $176,000, or 0.9 percent compared with the same period last year. Contributing to the reduction in expenses were lower costs in salaries and wages as a result of ongoing expense management, as well as, lower commissions in mortgage banking and wealth fees, year over year. Partially offsetting the reduction in costs were higher levels of marketing expense, up 81.1 percent from first quarter 2013, due to continued focus on expanding the Seacoast brand, digital communications, and building organic growth.

 

- continued -
 

 

Persistent emphasis on expense reduction resulted in the successful implementation of first quarter cost savings totaling $1.4 million annually. These savings were the result of negotiations with our current vendors for competitive pricing, changes to the organizational structure, and the termination of regulatory agreements and requirements. Our focus remains on building our customer franchise and increasing our loan production, while investing in resources to support revenue growth. Further second quarter cost saving initiatives, forecasted at $1.9 million annually, have been identified and are currently being implemented. These continued efforts in cost management will increase our efficiency through the reduction of legacy costs and other operational expense.

 

(Dollars in thousands)  First
Quarter
 2014		   Fourth Quarter
 2013		   Third
Quarter
 2013		   Second Quarter
 2013		   First
Quarter
2013		 
Noninterest Expense:                         
                          
Salaries and wages  $7,412   $8,077   $7,533   $7,892   $7,437 
Employee benefits   2,182    1,568    1,713    1,823    2,223 
Outsourced data processing costs   1,695    1,586    1,657    1,631    1,498 
Telephone / data lines   293    325    318    325    285 
Occupancy expense   1,838    1,824    1,824    1,775    1,755 
Furniture and equipment expense   571    597    605    571    561 
Marketing expense   813    749    456    685    449 
Legal and professional fees   941    839    874    949    796 
FDIC assessments   386    451    713    720    717 
Amortization of intangibles   196    196    195    197    195 
Other   2,063    2,414    2,203    2,512    2,153 
Total Core Operating Expense   18,390    18,626    18,091    19,080    18,069 
                          
Severance and organizational changes   212    0    24    10    33 
Branch consolidation   0    0    0    0    0 
Miscellaneous Losses   0    190    0    0    0 
Recovery of prior legal fees   0    (350)   0    (650)   0 
Net loss on OREO and repossessed assets   53    0    229    493    567 
Asset dispositions expense   128    180    159    111    290 
Total  $18,783   $18,646   $18,503   $19,044   $18,959 

 

- continued -
 

 

During the first quarter of 2014, we slowed the growth rate for investments in commercial loan production personnel compared to the prior two years. Our prior year’s commercial banking expansion included three Accelerate offices in the Orlando MSA. For the first quarter, 2014, total commercial loan balances outstanding increased $69 million, or 12.1 percent compared to the prior year. Ending consumer loan balances at first quarter 2014 increased by 3.0 percent year over year, with residential loan balances increasing $18 million, or 3.1 percent.

 

The Company’s tier 1 capital ratio is estimated at 17.5 percent and the total risk based capital ratio at 18.7 percent at March 31, 2014. The tier 1 leverage ratio was 10.6 percent at March 31, 2014. The Company closed on the sale of an additional $25 million in common equity in January 2014 related to the fourth quarter capital raise, which has further strengthened our capital ratios during the quarter.

 

Seacoast will host a conference call on Friday, April 25, 2014 at 9:30 a.m. (Eastern Time) to discuss the earnings results, business trends and the acquisition of BANKshares, Inc.  Investors may call in (toll-free) by dialing (888) 517-2458 (passcode: 7789246; host: Dennis S. Hudson).  Slides will be used during the conference call and may be accessed at Seacoast’s website at SeacoastBanking.net by selecting “Presentations” under the heading “Investor Services.”  A replay of the call will be available for one month, beginning the afternoon of April 25, by dialing (888) 843-7419 (domestic), using the passcode 7789246.

 

- continued -
 

 

Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast’s website at SeacoastBanking.net.  The link is located in the subsection “Presentations” under the heading “Investor Services.”  Beginning the afternoon of April 25, an archived version of the webcast can be accessed from this same subsection of the website.  The archived webcast will be available for one year.   

 

Seacoast Banking Corporation of Florida is one of the largest community banks headquartered in Florida with approximately $2.3 billion in assets and $1.8 billion in deposits as of March 31, 2014.  The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through 34 traditional branches of its locally-branded wholly-owned subsidiary bank, Seacoast National Bank, and five Accelerate offices fueled by the power of Seacoast National Bank.  Offices stretch from Fort Lauderdale north through the Treasure Coast and into Orlando, and west to Okeechobee and surrounding counties.

 

 

 

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.

 

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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, 2013 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) 04/24/14
SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES    

  

(Dollars in thousands, except share data)  Three Months Ended 
   March 31,   December 31,   March 31, 
   2014   2013   2013 
Summary of Earnings               
Net income (loss)  $2,299   $1,850   $2,044 
Net income available to common shareholders (loss)   2,299    588    1,107 
Net interest income  (1)   16,277    16,336    16,055 
Net interest margin  (1), (2)   3.07    3.08    3.15 
                
Performance Ratios               
Return on average assets-GAAP basis (2), (3)   0.41%   0.33%   0.38%
Return on average shareholders' equity-GAAP basis (2), (3)   4.02    3.10    5.09 
Return on average tangible common shareholders' equity-GAAP basis (2), (3), (4)   4.26    3.32    4.45 
Efficiency ratio (5)   84.30    81.92    81.45 
Noninterest income to total revenue   25.52    26.82    27.04 
                
Per Share Data               
Net income (loss) diluted-GAAP basis (6)  $0.09   $0.03   $0.06 
Net income (loss) basic-GAAP basis (6)   0.09    0.03    0.06 
Book value per share common (6)   8.79    8.40    6.20 
Tangible book value per share (6)   8.77    8.37    8.70 
Tangible common book value per share (4), (6)   8.77    8.37    6.15 
Cash dividends declared   0.00    0.00    0.00 

 

 

(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 defines tangible common equity as total shareholder's equity less preferred stock and intangible assets.
(5)Defined as (noninterest expense less foreclosed property expense and amortization of intangibles) divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains).
(6)Calculated based on total shares outstanding subsequent to the 5/1 reverse stock split.

 

FINANCIAL  HIGHLIGHTS            
SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES            

 

   March 31,   December 31,   March 31, 
(Dollars in thousands, except share data)  2014   2013   2013 
             
Selected Financial Data               
Total assets  $2,315,992   $2,268,940   $2,202,049 
Securities available for sale (at fair value)   658,512    641,611    649,196 
Net loans   1,292,984    1,284,139    1,202,270 
Deposits   1,819,795    1,806,045    1,762,164 
Total shareholders' equity   228,382    198,604    166,705 
Common shareholders' equity   228,382    198,604    117,647 
                
Average Balances (Year-to-Date)               
Total average assets  $2,286,998   $2,186,757   $2,169,329 
Less: intangible assets   629    1,104    1,395 
Total average tangible assets  $2,286,369   $2,185,653   $2,167,934 
                
Total average equity  $231,769   $183,304   $162,795 
Less: intangible assets   629    1,104    1,395 
Total average tangible equity  $231,140   $182,200   $161,400 
                
Credit Analysis               
Net charge-offs year-to-date  $(139)  $5,224   $1,517 
Net charge-offs to average loans (annualized)   (0.04)%   0.41%   0.49%
Loan loss provision year-to-date  $(735)  $3,188   $953 
Allowance to loans at end of period   1.48%   1.54%   1.76%
                
Nonperforming loans  $26,220   $27,672   $35,208 
Other real estate owned   6,369    6,860    10,850 
Total nonperforming assets  $32,589   $34,532   $46,058 
                
Restructured loans (accruing)  $24,537   $25,137   $41,170 
                
Nonperforming loans to loans at end of period   2.00%   2.12%   2.88%
                
Nonperforming assets to total assets   1.41%   1.52%   2.09%

 

 
 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME   (Unaudited) 04/24/14
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES    

 

   Three Months Ended 
   March 31, 
(Dollars in thousands, except per share data)  2014   2013 
         
Interest on securities:          
Taxable  $3,434   $3,184 
Nontaxable   12    18 
Interest and fees on loans   13,798    14,027 
Interest on federal funds sold and other investments   268    228 
Total Interest Income   17,512    17,457 
           
Interest on deposits   194    208 
Interest on time certificates   407    532 
Interest on borrowed money   690    717 
Total Interest Expense   1,291    1,457 
           
Net Interest Income   16,221    16,000 
Provision for loan losses   (735)   953 
Net Interest Income After Provision for Loan Losses   16,956    15,047 
           
Noninterest income:          
Service charges on deposit accounts   1,507    1,551 
Trust income   671    676 
Mortgage banking fees   661    1,114 
Brokerage commissions and fees   379    425 
Marine finance fees   254    272 
Interchange income   1,403    1,264 
Other deposit based EFT fees   98    98 
Other   585    531 
    5,558    5,931 
Securities gains, net   17    25 
Total Noninterest Income   5,575    5,956 
           
Noninterest expenses:          
Salaries and wages   7,624    7,470 
Employee benefits   2,182    2,223 
Outsourced data processing costs   1,695    1,498 
Telephone / data lines   293    285 
Occupancy   1,838    1,755 
Furniture and equipment   571    561 
Marketing   813    449 
Legal and professional fees   941    796 
FDIC assessments   386    717 
Amortization of intangibles   196    195 
Asset dispositions expense   128    290 
Net loss on other real estate owned and repossessed assets   53    567 
Other   2,063    2,153 
Total Noninterest Expenses   18,783    18,959 
           
Income Before Income Taxes   3,748    2,044 
Income taxes (benefit)   1,449    0 
           
Net Income   2,299    2,044 
Preferred stock dividends and accretion on preferred stock discount   -    937 
Net Income Available to Common Shareholders  $2,299   $1,107 
           
Per share of common stock:          
           
Net income diluted  $0.09   $0.06 
Net income basic   0.09    0.06 
Cash dividends declared   0.00    0.00 
           
Average diluted shares outstanding   25,656,775    18,925,215 
Average basic shares outstanding   25,489,630    18,789,428 

 

 
 

 

CONDENSED CONSOLIDATED BALANCE SHEETS           (Unaudited)       04/24/14
SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES    

 

   March 31,   December 31,   March 31, 
(Dollars in thousands, except share data)  2014   2013   2013 
             
Assets               
Cash and due from banks  $44,984   $48,561   $34,982 
Interest bearing deposits with other banks   173,794    143,063    192,069 
Total  Cash and Cash Equivalents   218,778    191,624    227,051 
                
Securities:               
Available for sale (at fair value)   658,512    641,611    649,196 
                
Loans available for sale   11,038    13,832    24,206 
                
Loans, net of deferred costs   1,312,456    1,304,207    1,223,810 
Less: Allowance for loan losses   (19,472)   (20,068)   (21,540)
Net Loans   1,292,984    1,284,139    1,202,270 
                
Bank premises and equipment, net   35,057    34,505    34,620 
Other real estate owned   6,369    6,860    10,850 
Other intangible assets   522    718    1,305 
Other assets   92,732    95,651    52,551 
   $2,315,992   $2,268,940   $2,202,049 
                
Liabilities and Shareholders' Equity               
Liabilities               
Deposits               
Demand deposits (noninterest bearing)  $513,925   $464,006   $453,144 
NOW   504,698    540,288    482,913 
Savings deposits   202,170    192,491    177,213 
Money market accounts   337,408    331,184    341,216 
Other time certificates   148,971    154,743    175,934 
Brokered time certificates   9,619    9,776    10,169 
Time certificates of $100,000 or more   103,004    113,557    121,575 
Total Deposits   1,819,795    1,806,045    1,762,164 
                
Federal funds purchased and securities sold under               
agreements to repurchase, maturing within 30 days   156,136    151,310    161,678 
Borrowed funds   50,000    50,000    50,000 
Subordinated debt   53,610    53,610    53,610 
Other liabilities   8,069    9,371    7,892 
    2,087,610    2,070,336    2,035,344 
                
Shareholders' Equity               
Preferred stock - Series A   0    0    49,058 
Common stock   2,599    2,364    9,485 
Additional paid in capital   301,918    277,290    222,940 
Accumulated deficit   (68,396)   (70,695)   (117,504)
Treasury stock   (39)   (11)   (25)
    236,082    208,948    163,954 
Accumulated other comprehensive gain (loss), net   (7,700)   (10,344)   2,751 
Total Shareholders' Equity   228,382    198,604    166,705 
   $2,315,992   $2,268,940   $2,202,049 
                
Common Shares Outstanding   25,984,488    23,637,434    18,970,005 

 

Note:  The balance sheet at December 31, 2013 has been derived from the audited financial statements at that date.

 

 
 

 

CONSOLIDATED QUARTERLY FINANCIAL  DATA     (Unaudited)           04/24/14  
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES                  

 

   QUARTERS 
   2014   2013 
(Dollars in thousands, except per share data)  First   Fourth   Third   Second   First 
Net income (loss)  $2,299   $1,850   $45,141   $2,954   $2,044 
                          
Operating Ratios                         
Return on average assets-GAAP basis (2),(3),(5)   0.41%   0.33%   8.32%   0.54%   0.38%
Return on average tangible assets (2),(3),(4)   0.43    0.35    8.34    0.57    0.41 
Return on average shareholders' equity-GAAP basis (2),(3),(5)   4.02    3.10    106.55    7.19    5.09 
Efficiency ratio (6)   84.30    81.92    78.05    81.05    81.45 
Noninterest income to total revenue   25.52    26.82    26.58    28.22    27.04 
                          
Net interest margin (1),(2)   3.07    3.08    3.25    3.12    3.15 
Average equity to average assets   10.13    10.55    7.80    7.56    7.50 
                          
Credit Analysis                         
Net charge-offs (recoveries)  $(139)  $838   $842   $2,027   $1,517 
Net charge-offs to average loans (recoveries)   (0.04)%   0.26%   0.26%   0.64%   0.49%
Loan loss provision  $(735)  $490   $1,180   $565   $953 
Allowance to loans at end of period   1.48%   1.54%   1.62%   1.59%   1.76%
                          
Restructured loans (accruing)  $24,537   $25,137   $25,509   $29,612   $41,170 
                          
Nonperforming loans  $26,220   $27,672   $28,724   $33,266   $35,208 
Other real estate owned   6,369    6,860    5,589    10,063    10,850 
Nonperforming assets  $32,589   $34,532   $34,313   $43,329   $46,058 
                          
Nonperforming loans to loans at end of period   2.00%   2.12%   2.27%   2.63%   2.88%
Nonperforming assets to total assets   1.41    1.52    1.60    1.98    2.09 
                          
Per Share Common Stock                         
Net income (loss) diluted-GAAP basis (7)  $0.09   $0.03   $2.31   $0.11   $0.06 
Net income (loss) basic-GAAP basis (7)   0.09    0.03    2.35    0.11    0.06 
                          
Cash dividends declared (7)   0.00    0.00    0.00    0.00    0.00 
Book value per share common (7)   8.79    8.40    8.12    5.89    6.20 
                          
Average Balances                         
Total average assets  $2,286,998   $2,245,155   $2,153,830   $2,178,242   $2,169,329 
Less: Intangible assets   629    813    1,009    1,205    1,395 
Total average tangible assets  $2,286,369   $2,244,342   $2,152,821   $2,177,038   $2,167,934 
                          
Total average equity  $231,769   $236,950   $168,078   $164,747   $162,795 
Less: Intangible assets   629    813    1,009    1,205    1,395 
Total average tangible equity  $231,140   $236,137   $167,069   $163,541   $161,400 

 

 

(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)Excluding the income tax benefit related to the reversal of the valuation allowance for deferred tax assets and reflecting tax provisioning of $1,351 for the third quarter 2013, adjusted return on average assets and adjusted return on average shareholder's equity for the third quarter was 0.40 percent and 5.07 percent, respectively.
(6)Defined as (noninterest expense less foreclosed property expense and amortization of intangibles) divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains).
(7)Calculated based on total shares outstanding subsequent to the 5/1 reverse stock split.

 

   March 31,   December 31,   March 31, 
SECURITIES  2014   2013   2013 
             
U.S. Treasury and U.S. Government Agencies  $100   $100   $1,202 
Mortgage-backed   619,951    602,568    638,571 
Collateralized loan obligations   32,215    32,179    - 
Obligations of states and political subdivisions   6,246    6,764    7,885 
Other securities   -    -    1,538 
Securities Available for Sale  $658,512   $641,611   $649,196 

 

   March 31,   December 31,   March 31, 
LOANS  2014   2013   2013 
             
Construction and land development  $67,197   $67,450   $62,851 
Real estate mortgage   1,121,027    1,113,128    1,052,766 
Installment loans to individuals   44,601    44,713    43,248 
Commercial and financial   79,401    78,636    64,752 
Other loans   230    280    193 
Total Loans  $1,312,456   $1,304,207   $1,223,810 

 

 
 

 

AVERAGE BALANCES (Unaudited)         04/24/14    
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES          

 

   QUARTER   Percent Change vs. 
   2014   2013   4th Qtr   1st Qtr 
(Dollars in thousands)  First   Fourth   Third   Second   First   2013   2013 
                             
Assets                                   
Earning assets:                                   
Securities:                                   
Taxable  $653,646   $655,176   $664,103   $639,769   $646,184    (0.2)%   1.2%
Nontaxable   1,016    1,560    1,560    1,647    1,666    (34.9)   (39.0)
Total Securities   654,662    656,736    665,663    641,416    647,850    (0.3)   1.1 
                                    
Federal funds sold and other investments   188,048    156,823    113,798    168,740    172,505    19.9    9.0 
                                    
Loans,  net   1,307,796    1,293,373    1,278,391    1,269,789    1,247,666    1.1    4.8 
                                    
Total Earning Assets   2,150,506    2,106,932    2,057,852    2,079,945    2,068,021    2.1    4.0 
                                    
Allowance for loan losses   (20,205)   (20,817)   (20,206)   (21,515)   (22,018)   (2.9)   (8.2)
Cash and due from banks   37,186    40,836    35,810    34,279    34,706    (8.9)   7.1 
Premises and equipment   34,731    34,750    34,834    35,121    34,516    (0.1)   0.6 
Other assets   84,780    83,454    45,540    50,412    54,104    1.6    56.7 
                                    
   $2,286,998   $2,245,155   $2,153,830   $2,178,242   $2,169,329    1.9    5.4 
                                    
Liabilities and Shareholders' Equity                                   
Interest-bearing liabilities:                                   
NOW  $507,313   $483,569   $447,350   $461,005   $474,915    4.9%   6.8%
Savings deposits   197,300    190,558    185,918    180,915    170,502    3.5    15.7 
Money market accounts   330,787    332,576    336,229    339,058    341,833    (0.5)   (3.2)
Time deposits   270,215    282,543    289,408    302,110    311,945    (4.4)   (13.4)
Federal funds purchased and                                   
other short term borrowings   155,656    142,999    157,607    159,847    160,600    8.9    (3.1)
Other borrowings   103,610    103,610    103,610    103,610    103,610    0.0    0.0 
                                    
Total Interest-Bearing Liabilities   1,564,881    1,535,855    1,520,122    1,546,545    1,563,405    1.9    0.1 
                                    
Demand deposits (noninterest-bearing)   481,048    462,830    454,642    455,525    433,757    3.9    10.9 
Other liabilities   9,300    9,520    10,988    11,425    9,372    (2.3)   (0.8)
Total Liabilities   2,055,229    2,008,205    1,985,752    2,013,495    2,006,534    2.3    2.4 
                                    
Shareholders' equity   231,769    236,950    168,078    164,747    162,795    (2.2)   42.4 
                                    
   $2,286,998   $2,245,155   $2,153,830   $2,178,242   $2,169,329    1.9    5.4 

 

AVERAGE YIELDS / RATES  (1)           (Unaudited)  
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES          
               

   QUARTER         
   2014   2013         
(Dollars in thousands)  First   Fourth   Third   Second   First         
                             
Assets                                   
Earning assets:                                   
Securities:                                   
Taxable   2.10%   2.11%   1.93%   1.88%   1.97%      
Nontaxable   6.69    6.41    6.67    6.55    6.37           
Total Securities   2.11    2.12    1.95    1.89    1.98           
                                    
Federal funds sold and other investments   0.58    0.57    0.67    0.53    0.54           
                                    
Loans,  net   4.29    4.29    4.59    4.52    4.57           
                                    
Total Earning Assets   3.31    3.33    3.52    3.39    3.43           
                                    
Liabilities and Shareholders' Equity                                   
Interest-bearing liabilities:                                   
NOW   0.08    0.08    0.08    0.09    0.10           
Savings deposits   0.05    0.05    0.05    0.05    0.06           
Money market accounts   0.08    0.09    0.08    0.08    0.08           
Time deposits   0.61    0.62    0.64    0.67    0.69           
Federal funds purchased and other short term borrowings   0.17    0.17    0.17    0.18    0.21           
Other borrowings   2.44    2.44    2.44    2.45    2.48           
                                    
Total Interest-Bearing Liabilities   0.33    0.35    0.36    0.36    0.38           
                                    
Interest expense as a % of earning assets   0.24    0.25    0.26    0.27    0.29           
Net interest income as a % of earning assets   3.07    3.08    3.25    3.12    3.15           

 

(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.

 

 
 

 

INTEREST INCOME / EXPENSE (1)       (Unaudited)  
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES        
               

   QUARTER   Percent Change vs. 
   2014   2013   4th Qtr   1st Qtr 
(Dollars in thousands)  First   Fourth   Third   Second   First   2013   2013 
                             
Assets                                   
Earning assets:                                   
Securities:                                   
Taxable  $3,434   $3,452   $3,212   $3,008   $3,184    (0.5)%   7.9%
Nontaxable   17    25    26    27    27    (32.0)   (37.0)
Total Securities   3,451    3,477    3,238    3,035    3,211    (0.7)   7.5 
                                    
Federal funds sold and other                                   
investments   268    224    192    224    228    (19.6)   17.5 
                                    
Loans,  net   13,849    13,974    14,804    14,312    14,073    (0.9)   (1.6)
                                    
Total Earning Assets   17,568    17,675    18,234    17,571    17,512    (0.6)   0.3 
                                    
Liabilities and Shareholders' Equity                                   
Interest-bearing liabilities:                                   
NOW   102    96    93    100    112    6.3    (8.9)
Savings deposits   24    26    25    24    26    (7.7)   (7.7)
Money market accounts   68    74    69    67    70    (8.1)   (2.9)
Time deposits   407    444    470    501    532    (8.3)   (23.4)
Federal funds purchased and other short term borrowings   66    62    68    73    83    6.5    (20.5)
Other borrowings   624    637    637    634    634    (2.0)   (1.6)
                                    
Total Interest-Bearing Liabilities   1,291    1,339    1,362    1,399    1,457    (3.6)   (11.4)
                                    
Net interest income   16,277    16,336    16,872    16,172    16,055    (0.4)   1.4 

 

(1)On a fully taxable equivalent basis. Fees on loans have been included in interest on loans.

 

 
 

 

CONSOLIDATED QUARTERLY FINANCIAL  DATA    (Unaudited)   04/24/14
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES      
           

   2014   2013 
(Dollars in thousands)  First Quarter   Fourth Quarter   Third Quarter   Second Quarter   First Quarter 
                     
Customer Relationship Funding (Period End)                         
Demand deposits (noninterest bearing)                         
Commercial  $291,221   $261,938   $254,373   $260,325   $246,849 
Retail   173,698    159,117    155,281    163,551    167,516 
Public funds   34,636    32,971    27,002    29,487    26,166 
Other   14,370    9,980    16,293    15,154    12,613 
    513,925    464,006    452,949    468,517    453,144 
                          
NOW accounts                         
Commercial   41,281    43,241    35,029    35,714    39,303 
Retail   329,226    324,583    305,055    308,390    307,545 
Public funds   134,191    172,464    100,785    108,965    136,065 
    504,698    540,288    440,869    453,069    482,913 
                          
Total Transaction Accounts                         
Commercial   332,501    305,179    289,402    296,039    286,152 
Retail   502,924    483,700    460,336    471,941    475,061 
Public funds   168,828    205,435    127,787    138,452    162,231 
Other   14,370    9,980    16,293    15,154    12,613 
    1,018,623    1,004,294    893,818    921,586    936,057 
                          
Savings accounts   202,170    192,491    187,181    184,219    177,213 
                          
Money market accounts                         
Commercial   109,158    100,601    107,767    109,938    111,580 
Retail   221,762    221,062    217,176    216,370    220,555 
Public funds   6,488    9,521    9,735    9,639    9,081 
    337,408    331,184    334,678    335,947    341,216 
                          
Time certificates of deposit   261,594    278,076    283,233    296,857    307,678 
Total Deposits  $1,819,795   $1,806,045   $1,698,910   $1,738,609   $1,762,164 
                          
Sweep repurchase agreements  $156,136   $151,310   $134,338   $160,934   $161,678 
                          
Total core customer funding (1)  $1,714,337   $1,679,279   $1,550,015   $1,602,686   $1,616,164 

 

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

 

 
 

 

QUARTERLY TRENDS - LOANS AT END OF PERIOD (Dollars in Millions) 04/24/14
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES  
             

   2014   2013 
   1st Qtr   4th Qtr   3rd Qtr   2nd Qtr   1st Qtr 
Installment loans to individuals                         
Automobile and trucks  $6.2   $6.6   $7.1   $7.5   $7.8 
Marine loans   20.8    20.2    21.3    16.7    15.4 
Other   17.6    17.9    18.8    20.1    20.0 
    44.6    44.7    47.2    44.3    43.2 
Construction and land development to individuals                         
Lot loans   13.3    12.9    14.7    15.5    16.6 
Construction   24.4    21.3    19.7    20.7    20.8 
    37.7    34.2    34.4    36.2    37.4 
Residential real estate                         
Adjustable   392.5    391.9    378.4    372.6    365.8 
Fixed rate   89.8    91.1    94.7    97.5    98.2 
Home equity mortgages   60.6    62.0    61.8    62.2    61.3 
Home equity lines   49.7    47.7    47.7    49.1    49.3 
    592.6    592.7    582.6    581.4    574.6 
                          
TOTAL CONSUMER   674.9    671.6    664.2    661.9    655.2 
                          
Commercial & financial   79.4    78.6    70.8    65.2    64.8 
                          
Construction and land development for commercial                         
Residential                         
Single family residences   1.8    2.0    -    -    - 
Single family land and lots   4.7    4.9    4.9    5.0    4.9 
Townhomes   0.5    -    -    -    - 
Multifamily   3.6    3.7    3.8    3.9    3.9 
    10.6    10.6    8.7    8.9    8.8 
Commercial                         
Office buildings   -    -    1.6    1.6    1.1 
Retail trade   2.9    7.7    1.8    1.8    - 
Land   4.4    4.9    7.3    7.2    7.8 
Healthcare   7.1    5.4    4.7    2.9    3.3 
Churches and educational facilities   1.1    3.8    4.0    2.5    1.2 
Lodging   3.4    0.9    0.3    -    - 
    18.9    22.7    19.7    16.0    13.4 
                          
Total construction and land development   29.5    33.3    28.4    24.9    22.2 
                          
Commercial real estate                         
Office buildings   120.0    118.7    118.2    112.0    112.5 
Retail trade   142.0    130.6    128.9    135.5    122.2 
Industrial   76.7    81.1    79.6    83.3    73.4 
Healthcare   44.1    45.5    38.8    42.1    39.4 
Churches and educational facilities   26.9    25.3    24.2    26.4    26.9 
Recreation   2.4    2.5    2.5    2.6    2.6 
Multifamily   17.2    16.8    6.2    9.5    8.5 
Mobile home parks   1.8    1.9    1.9    1.9    2.0 
Lodging   16.9    17.1    17.3    17.5    18.0 
Restaurant   3.7    3.7    3.8    3.5    3.6 
Agricultural   4.7    7.0    7.2    7.1    5.9 
Convenience stores   22.0    20.8    21.0    20.2    20.2 
Marina   20.6    21.3    21.5    20.9    21.1 
Other   29.4    28.1    27.9    31.1    25.1 
    528.4    520.4    499.0    513.6    481.4 
                          
TOTAL COMMERCIAL   637.3    632.3    598.2    603.7    568.4 
                          
Other   0.2    0.3    0.5    0.3    0.2 
   $1,312.4   $1,304.2   $1,262.9   $1,265.9   $1,223.8 

 

 
 

 

QUARTERLY TRENDS - INCREASE (DECREASE) IN LOANS BY QUARTER (Dollars in Millions) 04/24/14
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES  
             

   2014   2013 
   1st Qtr   4th Qtr   3rd Qtr   2nd Qtr   1st Qtr 
Installment loans to individuals                         
Automobile and trucks  $(0.4)  $(0.5)  $(0.4)  $(0.3)  $- 
Marine loans   0.6    (1.1)   4.6    1.3    (3.0)
Other   (0.3)   (0.9)   (1.3)   0.1    (0.7)
    (0.1)   (2.5)   2.9    1.1    (3.7)
Construction and land development to individuals                         
Lot loans   0.4    (1.8)   (0.8)   (1.1)   (0.1)
Construction   3.1    1.6    (1.0)   (0.1)   (1.4)
    3.5    (0.2)   (1.8)   (1.2)   (1.5)
Residential real estate                         
Adjustable   0.6    13.5    5.8    6.8    4.8 
Fixed rate   (1.3)   (3.6)   (2.8)   (0.7)   (0.8)
Home equity mortgages   (1.4)   0.2    (0.4)   0.9    3.3 
Home equity lines   2.0    -    (1.4)   (0.2)   (2.1)
    (0.1)   10.1    1.2    6.8    5.2 
                          
TOTAL CONSUMER   3.3    7.4    2.3    6.7    - 
                          
Commercial & financial   0.8    7.8    5.6    0.4    2.9 
                          
Construction and land development for commercial                         
Residential                         
Single family residences   (0.2)   2.0    -    -    - 
Single family land and lots   (0.2)   -    (0.1)   0.1    (0.7)
Townhomes   0.5    -    -    -    - 
Multifamily   (0.1)   (0.1)   (0.1)   -    (0.4)
    (0.0)   1.9    (0.2)   0.1    (1.1)
Commercial                         
Office buildings   -    (1.6)   -    0.5    1.1 
Retail trade   (4.8)   5.9    -    1.8    - 
Land   (0.5)   (2.4)   0.1    (0.6)   (1.8)
Healthcare   1.7    0.7    1.8    (0.4)   1.5 
Churches and educational facilities   (2.7)   (0.2)   1.5    1.3    0.7 
Lodging   2.5    0.6    0.3    -    - 
    (3.8)   3.0    3.7    2.6    1.5 
                          
Total construction and land development   (3.8)   4.9    3.5    2.7    0.4 
                          
Commercial real estate                         
Office buildings   1.3    0.5    6.2    (0.5)   7.8 
Retail trade   11.4    1.7    (6.6)   13.3    (4.5)
Industrial   (4.4)   1.5    (3.7)   9.9    0.8 
Healthcare   (1.4)   6.7    (3.3)   2.7    (1.3)
Churches and educational facilities   1.6    1.1    (2.2)   (0.5)   (1.7)
Recreation   (0.1)   -    (0.1)   -    (0.1)
Multifamily   0.4    10.6    (3.3)   1.0    (0.5)
Mobile home parks   (0.1)   -    -    (0.1)   - 
Lodging   (0.2)   (0.2)   (0.2)   (0.5)   (0.7)
Restaurant   -    (0.1)   0.3    (0.1)   0.1 
Agricultural   (2.3)   (0.2)   0.1    1.2    (0.2)
Convenience stores   1.2    (0.2)   0.8    -    (0.3)
Marina   (0.7)   (0.2)   0.6    (0.2)   (0.1)
Other   1.3    0.2    (3.2)   6.0    (4.7)
    8.0    21.4    (14.6)   32.2    (5.4)
                          
TOTAL COMMERCIAL   5.0    34.1    (5.5)   35.3    (2.1)
                          
Other   (0.1)   (0.2)   0.2    0.1    (0.2)
   $8.2   $41.3   $(3.0)  $42.1   $(2.3)