EX-99.1 2 v445673_ex99-1.htm EXHIBIT 99.1

 

EXHIBIT 99.1

To Form 8-K dated July 27, 2016

SEACOAST BANKING CORPORATION OF FLORIDA

NEWS RELEASE

 

Stephen Fowle

Executive Vice President

Chief Financial Officer

(772) 463-8977

steve.fowle@seacoastbank.com

 

Seacoast Banking Reports Second Quarter 2016 Results

 

Second Quarter EPS Increased 27% to $0.14 Sequentially;

Adjusted EPS1 Increased 21% to $0.23, Driven by Strong Revenue Growth

 

STUART, Fla., July 27, 2016 /PRNewswire/ — Seacoast Banking Corporation of Florida (“Seacoast” or “the Company”) (NASDAQ: SBCF) today reported results for the second quarter of 2016.

 

Seacoast reported net income of $5.3 million during the second quarter of 2016, compared to $4.0 million in the first quarter of 2016 and $5.8 million in the second quarter last year. Quarter over quarter, return on average assets (ROA) increased 7 basis points to 0.51% and return on tangible common equity (ROTCE) increased 150 basis points to 6.6%. During the quarter, Seacoast closed the previously announced acquisition of BMO Harris’ Orlando Banking operations including 14 traditional branch locations and its business banking team; and the second quarter 2016 results include $5.8 million in charges taken in conjunction with the BMO acquisition, branch closures and other non-core items1.

 

The Company reported second quarter adjusted net income1 of $8.8 million, a year-over-year increase of $2.7 million, or 45% and an increase of $2.0 million, or 30% (not annualized), from the prior quarter. Diluted earnings per common share (EPS) was $0.14 and adjusted diluted EPS1 was $0.23, a $0.04 or 21% increase above the first quarter 2016 and $0.05 or 28% above the year-ago period.

 

Net income for the first half of 2016 was $9.3 million compared to $11.7 million in the first half of 2015. Diluted EPS was $0.25 compared to $0.35 in the same period of 2015. Adjusted net income1 increased $3.4 million to $15.5 million for the first half of 2016 and adjusted1 diluted EPS increased 15% to $0.42.

 

 

 

 

Second Quarter 2016 Earnings Highlights

·Adjusted revenues1 increased $9.1 million, or 26% year-over-year, to $43.7 million; and increased $4.2 million, or 11% (not annualized), from the first quarter 2016.
·Net interest income improved $8.8 million, or 34% year-over-year, reflecting continued strong organic growth combined with the impact of strategic acquisitions.
·Adjusted fully diluted earnings per share1 rose to $0.23, an increase of 28% year-over-year and 21% from the first quarter 2016.
·Adjusted return on assets1 improved nine basis points to 0.84% over first quarter 2016, the return on tangible common equity1 eclipsed the double digit mark, reaching 10.6% during the second quarter.

 

Second Quarter 2016 Growth Highlights

·Loans grew $679 million or 35% from year-ago levels. Adjusting for acquisitions, loans grew $234 million or 12% as consumer, small business, and mortgage loan production hit record levels during the second quarter.
·Debit card volume also reached a record high, increasing 9% over the prior quarter and 18% over Q2 2015.
·Acquisitions continue to fuel growth. Customers acquired from BankFirst show a 27% increase in total services 18 months from acquisition and customers acquired from the Grand Bank acquisition show a 10% improvement in total services less than a year from acquisition.
·Seacoast completed the acquisition and integration of BMO Harris’ Orlando banking operations during June 2016, making Seacoast the largest Florida-based bank in this MSA.

 

2016 Guidance

·Seacoast reaffirms 2016 adjusted diluted EPS1 target of $1.00.

 

Dennis S. Hudson, III, Chairman and CEO said, “Seacoast’s increase in second quarter earnings shows the operating leverage created by our balanced growth strategy. We are sustaining our momentum in organic growth with record consumer, small business and mortgage loan expansion, combined with value-creating acquisitions and robust risk management. These successes provided a solid step forward towards our full-year 2016 adjusted EPS1 goal of $1.00.

 

“Total loans increased $679 million or 35% over second quarter 2015 levels and $161 million or 7%, compared to the first quarter of this year. Excluding acquisitions, loans grew a strong 16%, annualized, from first quarter levels and 12% above the prior year’s second quarter. We are managing a granular loan portfolio while prudently limiting commercial real estate as a percent of total capital to ensure we are well-positioned for sustainable value creation.

 

‘We continue to execute our broader transformation, modernizing our sales and service delivery models to better align with customers’ rapidly changing expectations while retaining the best aspects of traditional community banking. Digital delivery of products and services through convenient non-branch channels again drove our consumer franchise this quarter. For example, 32% of all deposits were made outside the branch, compared to 30% in the prior quarter. Moreover, 23% of consumer loans were originated outside the branch, compared to 16% in Q2 2015.

 

 

1 Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures”

 

 

 

 

“We are also beginning to realize significant cost savings through the execution of our digital transformation as our multi-channel delivery of banking services enables us to trim our physical presence while keeping customer satisfaction high. For example, we entered the year with eight Orlando branches, and acquired six Floridian and 14 BMO Harris locations in that market. By the end of the third quarter we will operate a total of 15 branches in the Orlando MSA, substantially reducing our physical presence in this market. We will continue to prudently refine our infrastructure as we move into the future.

 

“Data analytics and technology-assisted operational improvement are also helping us build efficiencies across our organization and drive process automation.  For example, during the second quarter, more than 40% of new consumer loan applications were provided a decision in an automated manner and loan documents were signed electronically, providing responsiveness and efficient service for our customers and cost savings for Seacoast.

 

“These facets of our strategy, when taken together, produced a solid step towards our long term goals. ROTCE grew 150 basis points and our efficiency ratio improved 370 basis points Our adjusted ROTCE1 improved 210 basis points to double digit levels and our adjusted efficiency ratio1 declined nearly 500 basis points to 65.1%, all while maintaining appropriate guardrails around our loan portfolio. We believe this year represents an inflection point in the execution of our strategy as we continue our growth and drive urgency in expense rationalization. We look forward to continued success over the next quarters and beyond,” Hudson concluded.

 

 

 

 

FINANCIAL HIGHLIGHTS  2Q16   1Q16   4Q15   3Q15   2Q15 
(Dollars in thousands except per share data)                         
Total Assets  $4,381,204   $4,001,323   $3,534,780   $3,378,108   $3,233,588 
Loans   2,616,052    2,455,214    2,156,330    2,099,447    1,937,399 
Deposits   3,501,316    3,222,447    2,844,387    2,742,296    2,605,177 
                          
Net Income   5,332    3,966    6,036    4,441    5,805 
Diluted Earnings Per Share   0.14    0.11    0.18    0.13    0.18 
Return on Average Assets (ROA)   0.51%   0.44%   0.69%   0.52%   0.72%
                          
Return on Average Tangible   6.6    5.1    7.8    5.9    8.2 
Common Equity (ROTCE)                         
Net Interest Margin   3.63    3.68    3.67    3.75    3.50 
Efficiency Ratio   78.0    81.7    72.6    76.3    68.6 
Pretax, Pre-provision Income (1)  $8,842   $6,600   $10,130   $8,126   $10,224 
                          
Average Diluted Shares   38,142    35,453    34,395    34,194    33,234 
Outstanding (000)                         
Adjusted Net Income (1)  $8,773   $6,758   $6,569   $6,232   $6,031 
Adjusted Diluted Earnings Per Share (1)  $0.23   $0.19   $0.19   $0.18   $0.18 
Adjusted ROA (1)   0.84%   0.75%   0.75%   0.77%   0.75%
Adjusted ROTCE (1)   10.6    8.5    8.9    8.2    8.7 
Adjusted Efficiency Ratio (1)   65.1    70.0    69.1    69.4    68.4 
Adjusted Pretax, Pre-provision Income (1)  $14,607   $11,082   $10,990   $10,990   $10,589 
Annualized Adjusted                         
Operating Expenses as a Percent of Average Assets (1)   2.77%   3.05%   3.00%   3.10%   2.98%

 

Acquisitions Update

 

Hudson noted, “We are pleased to have completed the acquisition of BMO Harris’ Orlando banking operations and we look forward to introducing Seacoast’s product and services to these newly acquired customers. We completed the BMO Harris integration in early June, one quarter after closing on our acquisition of Floridian Financial. These acquisitions bring together three established central-Florida franchises and propel Seacoast to a top-ten position in Orlando, making us the largest Florida based bank in that market. The BMO Harris acquisition is yet another in the recent series of successful acquisitions that have provided us with opportunity to further deploy our model of digital service delivery.

 

“As a result of these recent acquisitions, as well as the successful integration of our BankFirst and Grand Bank branches, we continue to drive incremental value creation within Orlando and Palm Beach markets. Organic household growth remains very strong and cross sell statistics are above the healthy growth rates in our legacy markets,” Hudson concluded.

 

 

 

 

Florida Economic Update

 

“Florida continues to gain recognition for its strong economy and business friendly environment,” Hudson commented. “Job growth continues to outpace the nation by a wide margin. A recent Wells Fargo Economics Group research report, dated May 2016, commented, ‘While hiring decelerated in most of the country in May, Florida employers continued to add jobs at a breakneck pace. Following April’s upwardly revised gain of 34,900 jobs, the state added another 24,500 jobs in May.’”

 

“Additionally, Florida made CNBC’s 2016 top-ten list of the ‘Best states for Business’, citing a vibrant economy, solid infrastructure and strong workforce as top factors,” Hudson concluded. “Florida’s economic strength continues to serve as a tailwind as we execute on our fundamental business plan.”

 

https://www08.wellsfargomedia.com/assets/pdf/commercial/insights/economics/regional-reports/fl-employment-20160617.pdf

 

Second Quarter 2016 Income Statement Highlights

 

Organic Growth along with Merger Activity Drives Net Interest Income Growth

 

Net interest income for the quarter totaled $34.8 million, a $9.0 million or 35% increase from second quarter 2015 levels. Net interest margin expanded to 3.63%, a 13 basis point increase from the prior year. Year-over-year net interest income and margin increases reflect improved balance sheet mix combined with favorable yield / cost trends on all major asset and liability classes. Acquisition activity also contributed to net interest income gains as Seacoast welcomed customers from Floridian and BMO Harris, and continued to grow relationships with customers of other recent acquisitions.

 

Net interest income increased $4.5 million in the second quarter of 2016 compared to the first quarter of 2016, while net interest margin decreased five basis points from 3.68% in the prior quarter. The net interest income improvement was built through continued organic and acquisition-related loan growth as well as purchases of investment securities in anticipation of the BMO Harris acquisition, which added deposits of $317 million and $64 million of business banking loans. Investment securities leverage, combined with additional liquidity at the time of the acquisition, was the main contributor to net interest margin decline.

 

Noninterest Income Growth Driven by Franchise Growth

 

Noninterest income excluding securities gains, totaled $9.1 million for the second quarter of 2016, $0.3 million above $8.8 million recorded in the second quarter of 2015. Included in second quarter 2015’s noninterest income was a $725,000 gain on participated loan. Adjusting for the gain on the participated loan, fee income increased $1.0 million or 12%.   Significant contributors to the increase in noninterest income include mortgage banking revenue of $1.4 million, which increased $0.3 million or 33% from the year-ago period reflecting record originations. Strong increases in interchange income and deposit service charges, up 17% and 5%, respectively, reflect intentional customer analytics-driven cross sell combined with strong household growth and customer engagement.

 

 

 

 

Noninterest income excluding securities gains, increased $481,000 or 6% (not annualized) from first quarter 2016 levels. First quarter 2016 noninterest income included $464,000 in unanticipated non-taxable income related to the Bank’s investment in bank owned life insurance (BOLI). Excluding securities gains and the unanticipated BOLI income for first quarter 2016, noninterest income increased $945,000 or 11% from first quarter. Strength in mortgage banking revenue, as well as transaction-based fees such as interchange and deposit service charges also added to the linked-quarter gain. Other noninterest income increased at a strong pace, representing growth in our businesses and returns on certain CRA investments.

 

Noninterest Expense Reflects Merger Activity and Other Investments in Seacoast Strategy

 

Noninterest expense increased $10.5 million from the second quarter of 2015, largely driven by $5.8 million in expense related to the acquisition of 14 branch offices from BMO Harris on June 3, 2016 and other non-core expenses. Adjusted noninterest expense1 increased $5.1 million from prior-year levels. The year-over-year increase in adjusted expense reflects ongoing costs related to the 2015 and 2016 acquisitions of Grand Bankshares and Floridian Financial Group and BMO Harris’ Orlando operations. Expenses also reflect support of organic growth of and investment in the franchise. Larger drivers include salary and benefits costs, occupancy and equipment and data processing expense, largely from acquisition activity. While adjusted noninterest expense grew 21% compared to prior year levels, revenues, excluding securities gains grew 26% - providing 5% operating leverage.

 

Noninterest expense increased $2.5 million from the first quarter, 2016. Adjusted noninterest expense1 grew $1.7 million or 6%. Contributing to the higher adjusted noninterest expense during the second quarter of 2016 were salary and benefits costs, occupancy and equipment and data processing expense, largely from acquisition activity.

 

Second Quarter 2016 Balance Sheet Highlights

 

Strong Originations and Acquisition Activity Continue Loan Portfolio Build

 

Total loans were $2.62 billion, an increase of $679 million or 35% from the second quarter 2015. Excluding acquired loans, loans increased $234 million or 12% above the prior year. Loans increased $161 million or 7% (not annualized) from first quarter 2016. Adjusted for the BMO Harris acquisition, loans increased $97 million or 4.0% (not annualized) linked-quarter.

 

Loan production continued at a strong pace across all business lines. Commercial loan originations for the quarter exceeded $111 million, well ahead of 2015 levels, with the commercial pipeline (in underwriting and approval or approved and not yet closed) totaling $113 million at June 30, 2016. Consumer loan and small business originations totaled $81 million during the second quarter of 2016 compared to $55 million one year ago.

 

 

 

 

Closed residential production for the quarter totaled $104 million compared with $82 million during the second quarter 2015, with a total residential pipeline of $66 million as of June 30, 2016, up from $54 million one year ago.

 

(Dollars in thousands)  2Q16   1Q16   4Q15   3Q15   2Q15 
                     
Commercial pipeline  $113,261   $97,953   $105,556   $104,915   $108,538 
Commercial loans closed   111,133    67,252    80,003    71,823    85,815 
Total Commercial loan originations and pipeline  $224,394   $165,205   $185,559   $176,738   $194,353 
                          
Residential pipeline  $66,083   $57,739   $30,340   $37,958   $53,902 
Residential loans retained   64,003    36,335    24,905    36,027    45,596 
Residential loans sold   39,499    30,345    35,278    37,996    36,182 
Total Residential loan originations and pipeline  $169,585   $124,419   $90,523   $111,981   $135,680 

 

Credit Quality Remains Stable and Strong

 

The provision for loan losses was $662,000 for the second quarter of 2016, down from $855,000 in the second quarter 2015 and above $463,000 recorded in the first quarter 2016. The decrease in provision was driven by strong credit metrics, including $339,000 in net recoveries collected during the quarter, offset by the impact of continued loan growth. The ratio of allowance for loan losses to non-acquired loans was 1.01% as of June 30 2016, a slight decrease from 1.03% as of December 31, 2015.

 

Additional highlights include:

 

·Nonperforming loans to total loans outstanding at the end of the second quarter decreased to 0.58%, down from 1.01% as of June 30, 2015;
·Nonperforming assets to total assets declined to 0.55%, compared to 0.79% one year ago.

 

Deposits Built on Core Customer Growth and Acquired Deposits

 

Total deposits increased $3.5 billion, 34% above the second quarter 2015. Core customer funding increased to $3.30 billion, an $828 million or 34% increase. Excluding acquisitions, core customer funding increased by $158 million or 6% and total deposits increased $67 million or 3% above the second quarter 2015. Core customer funding increased $240 million or 8% (not annualized) and total deposits grew $279 million or 9% (not annualized), compared to the prior quarter. Excluding acquired deposits, core customer funding decreased slightly, by $16 million from end of first quarter 2016 levels, reflecting normal seasonality.

 

Noninterest demand deposits grew $93 million or 9% (not annualized) from the first quarter of 2016 and $338 million or 42% from the second quarter of 2015. Excluding acquired deposits, noninterest demand deposits increased $140 million or 17% from the end of the second quarter 2015 and represent a strong 33% of total deposits.

 

 

 

 

(Dollars in thousands)  Second
Quarter
2016		   First
Quarter
2016		   Fourth
Quarter
2015		   Third
Quarter
2015		   Second
Quarter
2015		 
Customer Relationship Funding                         
                          
Noninterest demand  $1,146,791   $1,054,069   $854,447   $869,877   $808,429 
Interest-bearing demand   776,389    750,904    734,749    618,344    599,268 
Money market   860,930    741,657    665,353    660,632    621,973 
Savings   330,928    313,179    295,851    286,810    282,588 
Time certificates of deposit   386,278    362,638    293,987    306,633    292,919 
Total deposits  $3,501,316   $3,222,447   $2,844,387   $2,742,296   $2,605,177 
Customer sweep accounts  $183,387   $198,330   $172,005   $148,607   $157,676 
Total core customer funding (1)  $3,298,425   $3,058,139   $2,722,405   $2,584,270   $2,469,934 
Demand deposit mix (noninterest bearing)   32.8%   32.7%   30.0%   31.7%   31.0%

(1) Total deposits and customer sweep accounts, excluding time certificates of deposit.

 

Other Highlights

 

Capital Ratios Remain Strong

 

As expected, capital ratios decreased in conjunction with the BMO Harris acquisition and remain well above regulatory requirements for well-capitalized institutions. The common equity tier 1 capital ratio (CET1) is estimated at 10.9% and the total capital ratio is estimated at 13.4% at June 30, 2016. The tier 1 leverage ratio is estimated at 9.3% at June 30, 2016. Ratios are down slightly as earnings during the first and second quarter were offset by acquisition activity.

 

Tangible book value per share increased $0.11 to $8.98 while book value per share increased $1.25 to $11.09 compared to the second quarter of 2015. Average tangible common equity to assets was 8.4% at June 30, 2016.

 

Conference Call Information

 

Seacoast will host a conference call on Thursday, July 28, 2016 at 10:00 a.m. (Eastern Time) to discuss the earnings results. Investors may call in (toll-free) by dialing (800) 697-5978 (passcode: 7908 524). Slides will be used during the conference call and may be accessed at Seacoast's website at SeacoastBanking.com by selecting "Presentations" under the heading "Investor Services." A replay of the call will be available for one month, beginning late afternoon of July 28, by dialing (888) 843-7419 and using passcode: 7908 524.

 

Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast's website at SeacoastBanking.com. The link is located in the subsection "Presentations" under the heading "Investor Services." Beginning the afternoon of July 28, 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.

 

 

 

 

About Seacoast Banking Corporation of Florida (NASDAQ: SBCF)

 

Seacoast Banking Corporation of Florida is one of the largest community banks headquartered in Florida with approximately $4.4 billion in assets and $3.5 billion in deposits as of June 30, 2016. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, 52 traditional branches of its locally-branded wholly-owned subsidiary bank, Seacoast Bank, and five commercial banking centers. Offices stretch from Ft. Lauderdale, Boca Raton and West Palm Beach north through the Daytona Beach area, into Orlando and Central Florida, and west to Okeechobee and surrounding counties. More information about the Company is available at SeacoastBanking.com.

 

Cautionary Notice Regarding Forward-Looking Statements

 

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, cost savings, enhanced revenues, economic and seasonal conditions in our markets, and improvements to reported earnings that may be realized from cost controls and for integration of banks that we have acquired, or expect to acquire, 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, 2015, 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.

 

Explanation of Certain Unaudited Non-GAAP Financial Measures

 

This press release contains financial information determined by methods other than Generally Accepted Accounting Principles ("GAAP"). The financial highlights provide reconciliations between GAAP net income and adjusted net income, GAAP income and adjusted pretax, pre-provision income. Management uses these non-GAAP financial measures in its analysis of the Company's performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company's performance, and if not provided would be requested by the investor community. The Company believes the non-GAAP measures enhance investors' understanding of the Company's business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently. The Company provides reconciliations between GAAP and these non-GAAP measures. These disclosures should not be considered an alternative to GAAP.

 

 

 

 

To better evaluate its earnings, the Company removes certain items to arrive at adjusted net income, adjusted pretax, pre-provision income and adjusted diluted earnings per share (non-GAAP measures) as detailed in the table below(2):

 

Dollars in thousands except per share data)  Second
Quarter		   First
Quarter		   Fourth
Quarter		   Third
Quarter		   Second
Quarter		 
   2016   2016   2015   2015   2015 
Net income (loss)  $5,332   $3,966   $6,036   $4,441   $5,805 
                          
Boli Income   0    (464)   0    0    0 
Security (gains)   (47)   (89)   (1)   (160)   0 
Bargain purchase gain   0    0    (416)   0    0 
Total Adjustments to Revenue   (47)   (553)   (417)   (160)   0 
                          
Severance   464    306    187    670    29 
Merger related charges   2,448    4,038    1,043    2,120    337 
Branch closure charges and costs related to expense initiatives   1,121    691    0    0    0 
Other   0    0    0    121    0 
Miscellaneous losses   0    0    48    112    0 
Early redemption cost for FHLB advances   1,777    0    0    0    0 
Total Adjustments to Noninterest Expense   5,810    5,035    1,278    3,023    366 
                          
Effective tax rate on adjustments   (2,322)   (1,690)   (328)   (1,072)   (140)
Adjusted Net Income (1)   8,773    6,758    6,569    6,232    6,031 
Adjusted earnings per diluted share (1)  $0.23   $0.19   $0.19   $0.18   $0.18 
Average shares outstanding (000)   38,142    35,453    34,395    34,194    33,234 
                          
Adjusted Net Income (1)  $8,773   $6,758   $6,569   $6,232   $6,031 
Provision for loan losses   662    199    369    987    855 
Income taxes   5,172    4,125    4,052    3,771    3,703 
Adjusted pretax, pre-provision income (1)  $14,607   $11,082   $10,990   $10,990   $10,589 
Revenue  $43,604   $38,852   $36,882   $37,093   $34,512 
Total Adjustments to Revenue   (47)   (553)   (417)   (160)   0 
Adjusted Revenue  $43,651   $39,405   $37,299   $37,253   $34,512 
                          
Noninterest Expense  $34,808   $32,341   $27,169   $29,127   $24,288 
Total Adjustments to Noninterest Expense   5,810    5,035    1,278    3,023    366 
Adjusted Noninterest Expense  $28,998   $27,306   $25,891   $26,104   $23,922 

 

(1) Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures”

(2) Presentation has been revised in accordance with SEC's Division of Corporation Finance Compliance and Disclosure Interpretations, Non-GAAP Financial Measures" issued May 17, 2016

  

 

 

 

FINANCIAL  HIGHLIGHTS (Unaudited) 08/01/16
SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES    

 

(Dollars in thousands, except share data)  Three Months Ended   Six Months Ended 
   June 30,   March 31,   June 30,   June 30,   June 30, 
   2016   2016   2015   2016   2015 
Summary of Earnings                         
Net income  $5,332   $3,966   $5,805   $9,298   $11,664 
Net interest income  (1)   34,801    30,349    25,788    65,150    51,622 
Net interest margin  (1), (2)   3.63    3.68    3.50    3.65    3.56 
                          
Performance Ratios                         
Return on average assets-GAAP basis (2), (3)   0.51%   0.44%   0.72%   0.48%   0.74%
Return on average shareholders' equity-GAAP basis (2), (3)   5.15    4.30    7.13    4.75    7.27 
Return on average tangible shareholders' equity-GAAP basis (2), (3), (4)   6.62    5.13    8.20    5.89    8.35 
Efficiency ratio (5)   78.01    81.73    68.57    79.76    68.45 
Noninterest income to total revenue   20.89    22.21    25.63    21.52    23.92 
                          
Per Share Data                         
Net income diluted-GAAP basis  $0.14   $0.11   $0.18   $0.25   $0.35 
Net income basic-GAAP basis   0.14    0.11    0.18    0.26    0.35 
Book value per share common   11.20    10.91    9.84    11.20    9.84 
Tangible book value per share   9.08    9.17    8.87    9.08    8.87 
Cash dividends declared   0.00    0.00    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.
(4)The Company defines tangible common equity as total shareholder's equity less 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 and bargain purchase gain, net).

 

FINANCIAL  HIGHLIGHTS
SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES

 

   June 30,   March 31,   June 30, 
(Dollars in thousands, except share data)  2016   2016   2015 
             
Selected Financial Data               
Total assets  $4,381,204   $4,001,323   $3,233,588 
Securities available for sale (at fair value)   923,560    905,182    762,086 
Securities held for investment (at amortized cost)   401,570    198,231    214,777 
Net loans   2,595,327    2,435,490    1,918,608 
Deposits   3,501,316    3,222,447    2,605,177 
Total shareholders' equity   425,429    413,788    326,856 
                
Average Balances (Year-to-Date)               
Total average assets  $3,904,091   $3,601,381   $3,188,334 
Less: intangible assets   53,228    37,006    31,707 
Total average tangible assets  $3,850,863   $3,564,375   $3,156,627 
                
Total average equity  $393,782   $370,816   $323,359 
Less: intangible assets   53,228    37,006    31,707 
Total average tangible equity  $340,554   $333,810   $291,652 
                
Credit Analysis               
Net (recoveries) year-to-date - non-acquired loans  $(854)  $(539)  $(621)
Net charge-offs year-to-date - acquired loans   118    142    189 
Total net charge-offs (recoveries) year-to-date  $(736)  $(397)  $(432)
                
Net (recoveries) to average loans (annualized) - non-acquired loans   (0.07)%   (0.10)%   (0.07)%
Net charge-offs to average loans (annualized) - acquired loans   0.01    0.03    0.02 
Total net charge-offs (recoveries) to average loans (annualized)   (0.06)   (0.07)   (0.05)
                
Loan loss provision (recapture) year-to-date - non-acquired loans  $403   $(20)  $563 
Loan loss provision year-to-date - acquired loans   458    219    725 
Total loan loss provision year-to-date  $861   $199   $1,288 
                
Allowance to loans at end of period - non-acquired loans   1.01%   1.04%   1.10%
Discount for credit losses to acquired loans at end of period   3.96    3.79    3.32 
                
Nonperforming loans - non-acquired loans  $10,919   $11,881   $15,054 
Nonperforming loans - acquired loans   4,360    3,707    4,543 
Other real estate owned - non-acquired   3,791    5,042    4,855 
Other real estate owned - acquired   1,644    2,415    1,053 
Other real estate owned – branches out of service   3,259    634    0 
Total nonperforming assets  $23,973   $23,679   $25,505 
                
Restructured loans (accruing)  $20,337   $19,956   $23,441 
                
Purchased noncredit impaired loans  $554,519   $558,262   $275,964 
Purchased credit impaired loans   13,652    16,531    6,562 
Total acquired loans  $568,171   $574,793   $282,526 
                
Nonperforming loans to loans at end of period - non-acquired loans   0.42%   0.48%   0.78%
Nonperforming loans to loans at end of period - acquired loans   0.16    0.15    0.23 
Total nonperforming loans to loans at end of period   0.58    0.63    1.01 
                
Nonperforming assets to total assets - non-acquired   0.41%   0.44%   0.62%
Nonperforming assets to total assets - acquired   0.14    0.15    0.17 
Total nonperforming assets to total assets   0.55    0.59    0.79 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES  

 

   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
(Dollars in thousands, except per share data)  2016   2015   2016   2015 
                 
Interest on securities:                    
Taxable  $6,603   $4,977   $12,286   $9,875 
Nontaxable   299    147    463    297 
Interest and fees on loans   29,244    21,988    55,278    44,009 
Interest on federal funds sold and other investments   433    249    723    498 
Total Interest Income   36,579    27,361    68,750    54,679 
                     
Interest on deposits   688    524    1,292    925 
Interest on time certificates   550    321    863    668 
Interest on borrowed money   848    850    1,880    1,710 
Total Interest Expense   2,086    1,695    4,035    3,303 
                     
Net Interest Income   34,493    25,666    64,715    51,376 
Provision for loan losses   662    855    861    1,288 
Net Interest Income After Provision for Loan Losses   33,831    24,811    63,854    50,088 
                     
Noninterest income:                    
Service charges on deposit accounts   2,230    2,115    4,359    4,117 
Trust fees   838    759    1,644    1,560 
Mortgage banking fees   1,364    1,032    2,363    2,120 
Brokerage commissions and fees   470    576    1,101    1,017 
Marine finance fees   279    492    420    689 
Interchange income   2,370    2,033    4,587    3,770 
Other deposit based EFT fees   116    96    243    210 
BOLI income   379    334    1,220    664 
Gain on participated loan   0    725    0    725 
Other   1,065    684    1,804    1,282 
    9,111    8,846    17,741    16,154 
Securities gains, net   47    0    136    0 
Total Noninterest Income   9,158    8,846    17,877    16,154 
                     
Noninterest expenses:                    
Salaries and wages   13,884    9,301    27,283    18,090 
Employee benefits   2,521    2,541    5,003    4,956 
Outsourced data processing costs   2,803    2,234    7,242    4,418 
Telephone / data lines   539    443    1,067    939 
Occupancy   3,645    2,011    6,617    4,034 
Furniture and equipment   1,283    819    2,281    1,551 
Marketing   957    1,226    2,006    2,201 
Legal and professional fees   2,656    1,590    5,013    3,253 
FDIC assessments   643    520    1,187    1,109 
Amortization of intangibles   593    315    1,039    630 
Asset dispositions expense   160    173    250    316 
Net (gain)/loss on other real estate owned and repossessed assets   (201)   53    (252)   134 
Early redemption cost for Federal Home Loan Bank advances   1,777    0    1,777    0 
Other   3,548    3,062    6,636    5,843 
Total Noninterest Expenses   34,808    24,288    67,149    47,474 
                     
Income Before Income Taxes   8,181    9,369    14,582    18,768 
Income taxes   2,849    3,564    5,284    7,104 
                     
Net Income  $5,332   $5,805   $9,298   $11,664 
                     
Per share of common stock:                    
                     
Net income diluted  $0.14   $0.18   $0.25   $0.35 
Net income basic   0.14    0.18    0.26    0.35 
Cash dividends declared   0.00    0.00    0.00    0.00 
                     
Average diluted shares outstanding   38,141,550    33,233,508    36,797,259    33,184,764 
Average basic shares outstanding   37,470,071    32,978,006    36,159,473    32,971,670 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES  

 

   QUARTER 
   2016   2015 
(Dollars in thousands)  Second   First   Fourth   Third   Second 
                     
Interest on securities:                         
Taxable  $6,603   $5,683   $5,312   $5,154   $4,977 
Nontaxable   299    164    144    144    147 
Interest and fees on loans   29,244    26,034    25,184    25,276    21,988 
Interest on federal funds sold and other investments   433    290    275    249    249 
Total Interest Income   36,579    32,171    30,915    30,823    27,361 
                          
Interest on deposits   688    604    598    562    524 
Interest on time certificates   550    313    265    295    321 
Interest on borrowed money   848    1,032    952    955    850 
Total Interest Expense   2,086    1,949    1,815    1,812    1,695 
                          
Net Interest Income   34,493    30,222    29,100    29,011    25,666 
Provision for loan losses   662    199    369    987    855 
Net Interest Income After Provision for Loan Losses   33,831    30,023    28,731    28,024    24,811 
                          
Noninterest income:                         
Service charges on deposit accounts   2,230    2,129    2,229    2,217    2,115 
Trust fees   838    806    791    781    759 
Mortgage banking fees   1,364    999    955    1,177    1,032 
Brokerage commissions and fees   470    631    511    604    576 
Marine finance fees   279    141    205    258    492 
Interchange income   2,370    2,217    1,989    1,925    2,033 
Other deposit based EFT fees   116    127    99    88    96 
BOLI income   379    841    396    366    334 
Gain on participated loan   0    0    0    0    725 
Other   1,065    739    607    666    684 
    9,111    8,630    7,782    8,082    8,846 
Securities gains, net   47    89    1    160    0 
Bargain purchase gain, net   0    0    416    0    0 
Total Noninterest Income   9,158    8,719    8,199    8,242    8,846 
                          
Noninterest expenses:                         
Salaries and wages   13,884    13,399    11,135    11,850    9,301 
Employee benefits   2,521    2,482    2,178    2,430    2,541 
Outsourced data processing costs   2,803    4,439    2,455    3,277    2,234 
Telephone / data lines   539    528    412    446    443 
Occupancy   3,645    2,972    2,314    2,396    2,011 
Furniture and equipment   1,283    998    1,000    883    819 
Marketing   957    1,049    1,128    1,099    1,226 
Legal and professional fees   2,656    2,357    2,580    2,189    1,590 
FDIC assessments   643    544    551    552    520 
Amortization of intangibles   593    446    397    397    315 
Asset dispositions expense   160    90    79    77    173 
Net (gain)/loss on other real estate owned and repossessed assets   (201)   (51)   (157)   262    53 
Early redemption cost for Federal Home Loan Bank advances   1,777    0    0    0    0 
Other   3,548    3,088    3,097    3,269    3,062 
Total Noninterest Expenses   34,808    32,341    27,169    29,127    24,288 
                          
Income Before Income Taxes   8,181    6,401    9,761    7,139    9,369 
Income taxes   2,849    2,435    3,725    2,698    3,564 
                          
Net Income  $5,332   $3,966   $6,036   $4,441   $5,805 
                          
Per share of common stock:                         
                          
Net income diluted  $0.14   $0.11   $0.18   $0.13   $0.18 
Net income basic   0.14    0.11    0.18    0.13    0.18 
Cash dividends declared   0.00    0.00    0.00    0.00    0.00 
                          
Average diluted shares outstanding   38,141,550    35,452,968    34,395,373    34,193,540    33,233,508 
Average basic shares outstanding   37,470,071    34,848,875    34,115,697    33,907,178    32,978,006 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES  

 

   June 30,   December 31,   June 30, 
(Dollars in thousands, except share data)  2016   2015   2015 
             
Assets               
Cash and due from banks  $113,028   $81,216   $86,904 
Interest bearing deposits with other banks   13,774    54,851    7,844 
Total  Cash and Cash Equivalents   126,802    136,067    94,748 
                
Securities:               
Available for sale (at fair value)   923,560    790,766    762,086 
Held for investment (at amortized cost)   401,570    203,525    214,777 
Total Securities   1,325,130    994,291    976,863 
                
Loans held for sale   20,075    23,998    19,656 
                
Loans   2,616,052    2,156,330    1,937,399 
Less: Allowance for loan losses   (20,725)   (19,128)   (18,791)
Net Loans   2,595,327    2,137,202    1,918,608 
                
Bank premises and equipment, net   63,817    54,579    50,028 
Other real estate owned   8,694    7,039    5,908 
Goodwill   64,123    25,211    25,211 
Other intangible assets   16,154    8,594    6,824 
Bank owned life insurance   43,729    43,579    36,291 
Net deferred tax assets   62,648    60,274    58,631 
Other assets   54,705    43,946    40,820 
   $4,381,204   $3,534,780   $3,233,588 
                
Liabilities and Shareholders' Equity               
Liabilities               
Deposits               
Noninterest demand  $1,146,792   $854,447   $808,429 
Interest-bearing demand   776,388    734,749    599,268 
Savings   330,928    295,851    282,588 
Money market   860,930    665,353    621,973 
Other time certificates   172,816    153,318    158,091 
Brokered time certificates   9,216    9,403    8,237 
Time certificates of $100,000 or more   204,246    131,266    126,591 
Total Deposits   3,501,316    2,844,387    2,605,177 
                
Securities sold under agreements to repurchase   183,387    172,005    157,676 
Federal Home Loan Bank borrowings   151,000    50,000    65,000 
Subordinated debt   70,101    69,961    64,670 
Other liabilities   49,971    44,974    14,209 
    3,955,775    3,181,327    2,906,732 
                
Shareholders' Equity               
Common stock   3,799    3,435    3,300 
Additional paid in capital   451,542    399,162    380,553 
Accumulated deficit   (33,560)   (42,858)   (53,336)
Treasury stock   (482)   (73)   (64)
    421,299    359,666    330,453 
Accumulated other comprehensive (loss), net   4,130    (6,213)   (3,597)
Total Shareholders' Equity   425,429    353,453    326,856 
   $4,381,204   $3,534,780   $3,233,588 
                
Common Shares Outstanding   37,993,013    34,351,409    33,220,511 

 

Note: The balance sheet at December 31, 2015 has been derived from the audited financial statements at that date.

 

 

 

 

CONSOLIDATED QUARTERLY FINANCIAL  DATA (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES  

 

   QUARTERS 
   2016   2015 
(Dollars in thousands, except per share data)  Second   First   Fourth   Third   Second 
Net income  $5,332   $3,966   $6,036   $4,441   $5,805 
                          
Operating Ratios                         
Return on average assets-GAAP basis (2),(3)   0.51%   0.44%   0.69%   0.52%   0.72%
Return on average tangible assets (2),(3),(4)   0.56    0.48    0.73    0.56    0.75 
Return on average shareholders' equity-GAAP basis (2),(3)   5.15    4.30    6.78    5.05    7.13 
Efficiency ratio (5)   78.01    81.73    72.57    76.29    68.57 
Noninterest income to total revenue   20.89    22.21    21.10    21.79    25.63 
                          
Net interest margin (1),(2)   3.63    3.68    3.67    3.75    3.50 
Average equity to average assets   9.91    10.30    10.20    10.34    10.12 
                          
Credit Analysis Excluding Acquired Loans                         
Net charge-offs (recoveries) - non-acquired loans  $(315)  $(539)  $245   $(233)  $(358)
Net charge-offs - acquired loans   (24)   142    324    683    143 
Total net charge-offs (recoveries)  $(339)  $(397)  $569   $450   $(215)
                          
Net charge-offs (recoveries) to average loans - non-acquired loans   (0.05)%   (0.10)%   0.05%   (0.04)%   (0.08)%
Net charge-offs to average loans - acquired loans   0.00    0.03    0.06    0.12    0.03 
Total net charge-offs (recoveries) to average loans   (0.05)   (0.07)   0.11    0.08    (0.05)
                          
Loan loss provision (recapture) - non-acquired loans  $423   $(20)  $(40)  $852   $271 
Loan loss provision - acquired loans   239    219    409    135    584 
Total loan loss provision  $662   $199   $369   $987   $855 
                          
Allowance to loans at end of period - non-acquired loans   1.01%   1.04%   1.03%   1.11%   1.10%
Discount for credit losses to acquired loans at end of period   3.96    3.79    4.24    4.13    3.32 
                          
Nonperforming loans - non-acquired loans  $10,919   $11,881   $12,758   $14,474   $15,054 
Nonperforming loans - acquired loans   4,360    3,707    4,628    2,636    4,543 
Other real estate owned - non-acquired   3,791    5,042    3,699    4,183    4,855 
Other real estate owned - acquired   1,644    2,415    3,340    3,250    1,053 
Other real estate owned – branches out of service   3,259    634    0    0    0 
Total nonperforming assets  $23,973   $23,679   $24,425   $24,543   $25,505 
                          
Restructured loans (accruing)  $20,337   $19,956   $19,970   $20,543   $23,441 
                          
Purchased noncredit impaired loans  $554,519   $558,262   $320,349   $355,739   $284,978 
Purchased credit impaired loans   13,652    16,531    12,109    12,673    6,562 
Total acquired loans  $568,171   $574,793   $332,458   $368,412   $291,540 
                          
Nonperforming loans to loans at end of period - non-acquired loans   0.42%   0.48%   0.59%   0.69%   0.78%
Nonperforming loans to loans at end of period - acquired loans   0.16    0.15    0.22    0.12    0.23 
Total nonperforming loans to loans at end of period   0.58    0.63    0.81    0.81    1.01 
                          
Nonperforming assets to total assets - non-acquired   0.41%   0.44%   0.47%   0.55%   0.62%
Nonperforming assets to total assets - acquired   0.14    0.15    0.22    0.18    0.17 
Total nonperforming assets to total assets   0.55    0.59    0.69    0.73    0.79 
                          
Per Share Common Stock                         
Net income diluted-GAAP basis  $0.14   $0.11   $0.18   $0.13   $0.18 
Net income basic-GAAP basis   0.14    0.11    0.18    0.13    0.18 
                          
Cash dividends declared   0.00    0.00    0.00    0.00    0.00 
Book value per share common   11.20    10.91    10.29    10.20    9.84 
                          
Average Balances                         
Total average assets  $4,206,800   $3,601,381   $3,463,277   $3,373,858   $3,225,127 
Less: Intangible assets   69,449    37,006    34,457    35,185    32,188 
Total average tangible assets  $4,137,351   $3,564,375   $3,428,820   $3,338,673   $3,192,939 
                          
Total average equity  $416,748   $370,816   $353,392   $348,901   $326,338 
Less: Intangible assets   69,449    37,006    34,457    35,185    32,188 
Total average tangible equity  $347,299   $333,810   $318,935   $313,716   $294,150 

 

(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)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 and bargain purchase gain, net).

 

   June 30,   December 31,   June 30, 
SECURITIES  2016   2015   2015 
   $8,994.00       $13,913.00 
U.S. Treasury and U.S. Government Agencies  $13,560   $3,911   $3,843 
Mortgage-backed   601,392    539,688    558,561 
Collateralized loan obligations   123,019    122,583    124,241 
Obligations of states and political subdivisions   64,435    39,891    22,873 
Corporate and other debt securities   77,699    44,273    31,981 
Private commercial mortgage backed securities   43,455    40,420    20,587 
Securities Available for Sale   923,560    790,766    762,086 
                
Mortgage-backed   360,126    162,225    173,477 
Collateralized loan obligations   41,444    41,300    41,300 
Securities Held for Investment   401,570    203,525    214,777 
Total Securities  $1,325,130   $994,291   $976,863 

 

   June 30,   December 31,   June 30, 
LOANS  2016   2015   2015 
             
Construction and land development  $142,387   $108,787   $95,178 
Real estate mortgage   2,033,829    1,733,163    1,588,105 
Installment loans to individuals   115,513    85,356    62,913 
Commercial and financial   323,466    228,517    190,325 
Other loans   857    507    878 
Total Loans  $2,616,052   $2,156,330   $1,937,399 

 

 

 

 

AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES (1) (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES  

 

   2016   2015 
   Second Quarter   First Quarter   Second Quarter 
   Average       Yield/   Average       Yield/   Average       Yield/ 
(Dollars in thousands)  Balance   Interest   Rate   Balance   Interest   Rate   Balance   Interest   Rate 
Assets                                             
Earning assets:                                             
Securities:                                             
Taxable  $1,185,022   $6,603    2.23%  $996,301   $5,683    2.28%  $957,374   $4,977    2.08%
Nontaxable   28,445    459    6.45    17,929    251    5.60    15,311    225    5.87 
Total Securities   1,213,468    7,062    2.33    1,014,230    5,934    2.34    972,685    5,202    2.14 
                                              
Federal funds sold and other  investments   110,636    433    1.57    52,213    290    2.23    79,031    249    1.26 
                                              
Loans,  net   2,532,533    29,392    4.67    2,246,773    26,074    4.67    1,904,011    22,032    4.64 
                                              
Total Earning Assets   3,856,637    36,887    3.85    3,313,216    32,298    3.92    2,955,727    27,483    3.73 
                                              
Allowance for loan losses   (20,185)             (19,558)             (18,247)          
Cash and due from banks   92,159              81,947              71,858           
Premises and equipment   63,149              57,062              49,275           
Intangible assets   69,449              37,006              32,188           
Bank owned life insurance   43,542              43,647              36,111           
Other assets   102,049              88,061              98,215           
                                              
   $4,206,800             $3,601,381             $3,225,127           
                                              
Liabilities and Shareholders' Equity                                             
Interest-bearing liabilities:                                             
Interest-bearing demand  $755,206   $161    0.09%  $710,083   $155    0.09%  $612,433   $110    0.07%
Savings   322,567    39    0.05    303,207    37    0.05    279,354    41    0.06 
Money market   810,709    488    0.24    667,466    412    0.25    607,271    373    0.25 
Time deposits   366,263    550    0.60    304,401    313    0.41    303,802    321    0.42 
Federal funds purchased and                                             
securities sold under agreements to repurchase   195,802    129    0.26    185,728    127    0.28    167,903    77    0.18 
Federal Home Loan Bank borrowings   171,011    215    0.51    57,308    409    2.87    50,165    400    3.20 
Other borrowings   70,064    504    2.89    69,987    496    2.85    64,649    373    2.31 
                                              
Total Interest-Bearing Liabilities   2,691,622    2,086    0.31    2,298,180    1,949    0.34    2,085,577    1,695    0.33 
                                              
Noninterest demand   1,059,039              906,231              795,707           
Other liabilities   39,391              26,154              17,505           
Total Liabilities   3,790,052              3,230,565              2,898,789           
                                              
Shareholders' equity   416,748              370,816              326,338           
                                              
   $4,206,800             $3,601,381             $3,225,127           
                                              
Interest expense as a % of earning assets             0.22%             0.24%             0.23%
Net interest income as a % of earning assets       $34,801    3.63%       $30,349    3.68%       $25,788    3.50%

 

(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.

 

 

 

 

 

CONSOLIDATED QUARTERLY FINANCIAL  DATA (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES  

 

   2016   2015 
(Dollars in thousands)  Second Quarter   First Quarter   Fourth Quarter   Third Quarter   Second Quarter 
                     
Customer Relationship Funding (Period End)                         
Noninterest demand                         
Commercial  $860,953   $768,890   $592,621   $619,960   $561,742 
Retail   211,722    212,367    198,077    182,381    180,484 
Public funds   44,275    52,244    46,300    47,765    47,913 
Other   29,842    20,568    17,449    19,771    18,290 
    1,146,792    1,054,069    854,447    869,877    808,429 
                          
Interest-bearing demand                         
Commercial   102,105    101,767    77,500    69,037    60,411 
Retail   549,301    496,846    479,056    443,022    410,601 
Public funds   124,982    152,291    178,193    106,285    128,256 
    776,388    750,904    734,749    618,344    599,268 
                          
Total transaction accounts                         
Commercial   963,058    870,657    670,121    688,997    622,153 
Retail   761,023    709,213    677,133    625,403    591,085 
Public funds   169,257    204,535    224,493    154,050    176,169 
Other   29,842    20,568    17,449    19,771    18,290 
    1,923,180    1,804,973    1,589,196    1,488,221    1,407,697 
                          
Savings   330,928    313,179    295,851    286,810    282,588 
                          
Money market                         
Commercial   293,724    271,567    208,520    225,629    191,061 
Retail   419,821    380,233    312,756    306,138    272,853 
Public funds   147,385    89,857    144,077    128,865    158,059 
    860,930    741,657    665,353    660,632    621,973 
                          
Time certificates of deposit   386,278    362,638    293,987    306,633    292,919 
Total Deposits  $3,501,316   $3,222,447   $2,844,387   $2,742,296   $2,605,177 
                          
Customer sweep accounts  $183,387   $198,330   $172,005   $148,607   $157,676 
                          
Total core customer funding (1)  $3,298,425   $3,058,139   $2,722,405   $2,584,270   $2,469,934 

 

(1) Total deposits and customer sweep accounts, excluding certificates of deposits.