Seacoast Banking Corporation of Florida (Form: 8-K)

EX-99.1

EXHIBIT 99.1
To Form 8-K dated July 27, 2009

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 RESULTS FOR
SECOND QUARTER 2009

STUART, FL., July 27, 2009 – Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCF), a bank holding company whose principal subsidiary is Seacoast National Bank, today reported a second quarter 2009 net loss of $13.2 million, compared to a net loss of $21.3 million for the second quarter of 2008 and a net loss of $4.8 million for the first quarter this year. Including preferred stock dividends and accretion of $937,000, the net loss applicable to common shareholders was $14.1 million or $0.74 per average common diluted share for the second quarter, compared to a net loss of $21.3 million or $1.12 per average common diluted share for the second quarter of 2008.

Results for the quarter were reduced by a special assessment from the FDIC totaling $0.03 per diluted share, offset by gains on sales on securities which increased earnings per diluted share by $0.06. The Company also recorded a $26.2 million provision for credit losses in the second quarter. The provision for credit losses exceeded net charge offs by $11.1 million and resulted in an increase in the allowance for loan losses as a percentage of loans held for investment to 2.75 percent at June 30, 2009, compared to 1.99 percent for the first quarter this year and 1.75 percent at June 30, 2008.

Other highlights for the second quarter 2009 include:

• The total risk based capital ratio remained strong at approximately 13.4 percent compared to 14.0 percent at year end 2008;

• Net interest margin increased to 3.65 percent, up 21 basis points from the first quarter 2009;

• Core revenues (excluding securities gains of $1.8 million and other real estate owned (“OREO”) losses of $946,000) totaled $23.8 million in the second quarter, compared to $23.1 million in the first quarter 2009 (excluding $183,000 in OREO losses);

• Average cost of deposits for the second quarter totaled 1.40 percent, down 39 basis points from the first quarter of 2009;

• Average noninterest bearing deposits for the second quarter totaled $281.7 million, up $7.4 million or 10.8 percent annualized compared to first quarter of 2009;

• 7,072 new households have added 8,928 new personal checking accounts over the last twelve months;

• Liquidity remained strong, supported by a diverse local retail and commercial deposit base, no overnight borrowings and approximately $700 million in excess liquidity sources available at June 30, 2009; and

• Residential construction and development exposure was reduced to $96.7 million compared with a high of $351.6 million in 2007. Total construction and development loans declined by 17 percent during the quarter, representing significant progress in reducing overall credit risk.

“During the quarter, we made significant progress in reducing our exposures to construction and development loans and have specific plans in place to further reduce these exposures in the coming months”, said Dennis S. Hudson, III, Chairman and Chief Executive Officer. “This effort, which started over two years ago, and our recent success in producing quality growth in our residential mortgage portfolio, is reducing the overall risk profile of the Company. While we remain very disappointed in our overall performance, our strong customer franchise and low cost core deposit base continued to produce solid core earnings. We believe reduced exposures to construction and development loans are the key to lower credit costs in future quarters.”

Loan Portfolio Risk Reduction Update

Construction and land development portfolios are being run off and risk is being reduced. These portfolios have been the primary source of increases in both nonperforming loans and loan losses over the past two years.


Construction and
Land Development
Loans	High Point			June 30, 2008		March 31, 2009		June 30, 2009
Residential	$	351.6	3/31/2007	$	246.0	$	117.2	$	96.7
Commercial		242.4	12/31/2007		227.2		201.4		166.8
Individuals		91.3	12/31/2006		67.1		50.2		44.2

TOTAL	$	627.0	9/30/2007	$	540.3	$	368.8	$	307.7

Dollars in millions

Run-off of these portfolios has been achieved through early recognition of the potential for portfolio weakness in the first quarter of 2007 when the housing market began to slow, aggressive collection and liquidation activities with borrowers, and additional liquidation achieved through the sale of larger problem loans. Total construction and land development loans have been reduced to less than half of that reported at the high point in 2007, with over $200 million in reduction having been achieved over the past four quarters. Residential construction and land development loans, which have produced extremely high loss experience over the past two years, have been reduced by 73 percent compared to the high point in 2007. Portfolio liquidation for residential construction and development loans has also been focused on large loan exposures. Large balance (over $4 million) residential construction and land development loans have been reduced by $119.7 million to $44.0 million over the past six quarters, most of which ($37.5 million) is currently on nonaccrual. This portfolio is now in the process of liquidation in accordance with specific work-out plans with borrowers designed to achieve substantial liquidation in an orderly fashion over the next 18 months. We expect aggregate loss exposure in this portfolio to moderate significantly in the second half of this year.

Commercial real estate mortgage loans remain well diversified (as shown in the table below) with all but three categories of exposure at less than 30 percent of tier 1 capital and the allowance for loan losses. The three largest categories of exposure are: office buildings, retail trade and industrial at 61 percent, 52 percent and 40 percent, respectively, of tier 1 capital and the allowance for loan losses. Approximately 35 percent of commercial real estate mortgage loans are owner occupied with an average loan-to-value of 48 percent and originated over a wide timeframe. The non-owner occupied portion of the portfolio has an average loan-to-value of 54 percent. While, over time, the Company may see further deterioration in this portfolio as a result of continuing economic weakness, we expect a much lower level of loss potential than recently experienced in our construction and land development portfolios.

Problem Loan Management and Loss Mitigation Update

Problem assets grew during the quarter due to continued deterioration as a result of economic conditions and greater focus on early intervention loss mitigation strategies (as discussed last quarter) including troubled debt restructures for smaller commercial and consumer borrowers. The pace of growth began to moderate for nonaccruing loans, while other real estate owned grew higher as problem assets migrated toward liquidation.

Nonaccrual Loans
June 30, 2009


							Restructured
	Nonaccrual Loans						Loans (Accruing)
Dollars in thousands	Non Current		Current*		Total

Construction and land development
Residential	$	39,235	$	24,353	$	63,588	$	0
Commercial		2,135		0		2,135		0
Individual		6,457		240		6,697		973
Residential Mortgage		20,190		13,169		33,359		9,795
Commercial Real Estate Mortgage		13,473		6,211		19,684		3,259
Commercial and Financial		223		107		330		0
Installment loans to individuals		132		833		965		762
TOTAL	$	81,845	$	44,913	$	126,758	$	14,789

*Loans classified as nonaccrual and less than 30 days past due.

Nonaccruing loans grew by $17.4 million from March 31, 2009 to $126.8 million at June 30, 2009. Growth in nonaccruing loans coming from the construction and land development portfolios slowed considerably to $5.5 million, while residential mortgage nonaccruing loans grew by $12.0 million during the quarter. Nonaccruing loans also include restructured loans that are currently classified as nonaccruing. Company policy requires troubled debt restructures to be classified as nonaccrual loans (under certain circumstances) until performance can be verified (typically six months). We will continue to pursue troubled debt restructures in selected cases where we expect to achieve better liquidation values than may be expected through other traditional collection activities. During the quarter, we also worked with retail mortgage customers, when possible, to achieve lower payment structures in an effort to avoid foreclosure and keep families in their homes. A total of 102 applications were received seeking restructured mortgages, compared to 93 the first quarter and 37 in the fourth quarter of last year. Restructured loans included in nonaccruing loans totaled $33.4 million at June 30, 2009 compared with $32.9 million at March 31, 2009. At June 30, 2009, nonaccruing loans which totaled $126.8 million have been written down by approximately $36.2 million or 24 percent of the original loan balance (including specific impairment reserves).

During the quarter we saw improvements in past due loans. Early stage delinquency improved in the residential mortgage loan portfolio and remained modest in other loan portfolios. Accruing residential mortgage loans (including home equity lines) 30-89 days past due declined to $3.7 million from $6.7 million, and loans 90 days past due declined to zero from $3.9 million on a linked quarter basis. These improvements were supported by healthier trends in our markets during the quarter. Residential home prices in the Company’s markets and Florida continued to show signs of stability as home sales volumes and inventory levels continued to improve, although the rate of unemployment remains high.

Other real estate owned (“OREO”) grew by $10,575,000 to $23,259,000, reflecting a migration of a number of commercial and residential properties through the final foreclosure process which offset sales and liquidations for the quarter. OREO is expected to grow in the coming quarter and increase over the next few quarters as we conclude final liquidation and resolution of many nonaccrual loans. During the quarter, resources were positioned to help accelerate the marketing and liquidation of assets in this portfolio.

Operating earnings (before the provision for loan losses and income taxes) excluding FDIC special assessment, OREO losses, securities gains and severance payments of $308,000 for the second quarter of 2009 totaled approximately $4.6 million, up from the $4.2 million earned in the first quarter 2009 excluding the same items noted for the second quarter 2009. During the quarter, the negative impact on net interest income from higher nonperforming loans, together with increased collection costs, were absorbed by improved net interest margin performance, better deposit mix, increased investment securities yield and reduced salary and benefits, data processing, occupancy, and other expenses.

Net interest income (on a tax equivalent basis) was $19.0 million, up $746,000 or 16 percent annualized from the first quarter 2009 as a result of lower deposit costs and lower rates paid on all interest bearing liabilities, increased yield on investments, partially offset by a decline in loans, lower loan yields and higher nonperforming loans. The net interest margin, which totaled 3.65 percent, increased 21 basis points compared to the first quarter 2009, and was 4 basis points lower than in second quarter 2008.

Noninterest income, excluding securities gains and losses, totaled $3.9 million, down $828,000 linked quarter, primarily due to an increase of $763,000 in OREO losses, as well as lower revenue related to seasonal declines in fees from merchant services. The revenues from these sources were partially offset by higher revenues from debit card fees, the result of the growth in new deposit households. Wealth management and marine finance fees continue to be impacted by the challenging economic conditions. Mortgage production remained comparable to the first quarter with revenues at $488,000, and totaled $987,000 for the first half of 2009, up $269,000 over the first six months last year.

Noninterest expenses for the second quarter totaled $20.3 million, $1.2 million higher than in the first quarter 2009, largely the result of the FDIC special assessment. Salaries, wages and benefits (excluding one time severance payments) for the second quarter 2009 declined $765,000 or 8.4 percent from a year ago, and were $2.3 million lower for the first six months compared to the same period in 2008, as a result of consolidation of branches and centralization of management by combining markets. Cost reductions were also achieved in backroom areas, with expenditures for data processing, communications, occupancy, and furniture and equipment all declining compared to the prior year. Increasing this quarter were costs related to foreclosed and repossessed asset management activities, which increased by $287,000 compared to the first quarter 2009, as well as higher legal and professional fees related to risk management, credit and collection related activities.

The Company’s residential lending group has produced solid, quality mortgage loan growth in 2009. Greater emphasis on residential lending has increased mortgage originations in the first six months of 2009. A total of 320 applications were accepted in the second quarter 2009 for total loans of $71 million, and 703 applications were taken in the first six months for $165 million. Closed mortgage loans totaled $43 million for the quarter, up $5 million from the first quarter 2009. A total of $24 million in residential mortgage loans were sold in the second quarter of 2009. Over the first six months of 2009, a total of $44 million in residential mortgage loans were sold, and $37 million were added to the portfolio.

The Company’s retail core deposit focus has produced strong growth in core deposit customer relationships and has resulted in increased balances, which offset planned run-off in certificates of deposit in the second quarter 2009. The improved deposit mix and lower rates paid on interest bearing deposits during the second quarter reduced the overall cost of total deposits to 1.40 percent, 39 basis points lower than in the first quarter 2009.

While total deposits at quarter end June 30, 2009 were lower compared to March 31, 2009, due to normal seasonal decline combined with planned deposit runoff, the mix of deposits improved with average time deposits declining $35.0 million, other lower cost interest bearing NOW and savings deposits increasing $4.4 million or 12.3 percent annualized, and demand deposits increasing $7.3 million or 10.7 percent annualized compared to the first quarter 2009. The average cost of interest bearing core deposits during the second quarter was 0.71 percent, down 39 basis points from the first quarter. Certificates of deposits rates paid were also lower compared to the first quarter and totaled 2.80 percent during the second quarter, a decline of 45 basis points. The average cost of total interest bearing liabilities was down 40 basis points compared to the first quarter at 1.65 percent.

Average deposits totaled $1.8 billion for the second quarter 2009, $37 million less than in the first quarter 2009, due to lower average customer balances as the result of normal seasonal declines and a planned reduction of brokered deposits of $36 million. Total average sweep repurchase agreements declined during the quarter, as a result of normal seasonal funding trends for the Company’s public deposit customers. Compared to the prior year, end of period customer sweep repurchase agreements were up $15 million. Total deposits at June 30, 2009 declined $134 million compared to the prior year as a result of deposit declines of $144 million in the Company’s central Florida region caused by slower economic growth. Average noninterest bearing deposits totaled $281.7 million for the second quarter 2009, up $7.4 million or 10.8 percent annualized compared to the first quarter 2009. In addition, core interest bearing deposits totaled $808 million, slightly lower compared to the first quarter as seasonal declines were offset by the successful retail core deposit strategy implemented last year. As previously reported, the Company has experienced strong growth in core deposit customer relationships since implementing the new strategy. A total of 7,072 new households have added 8,928 new personal checking accounts over the last twelve months. These new relationships have improved market share and increased average services per household. In addition, the new relationships have increased their balances at account opening during the first six months by 36 percent to an average of $24,850.

Seacoast will host a conference call on July 28, 2009 at 10:00 a.m. (Eastern Time) to discuss the earnings results and business trends. Investors may call in (toll-free) by dialing (866) 712-7678 (access code: 9071890; leader: Dennis S. Hudson, III). Charts will be used during the conference call and may be accessed at Seacoast’s website at www.seacoastbanking.net by selecting “Presentations” under the heading “Investor Services”. A replay of the call will be available for one month, beginning the afternoon of July 28, 2009, by dialing (877) 213-9653 (domestic), using the passcode 9071890. Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast’s website at www.seacoastbanking.net. The link is located in the subsection “Presentations” under the heading “Investor Services”. Beginning the afternoon of July 28, 2009, an archived version of the webcast can be accessed from this same subsection of the website, and will be available for one year.

Seacoast Banking Corporation of Florida has approximately $2.2 billion in assets. It is one of the largest independent commercial banking organizations in Florida, headquartered on Florida’s Treasure Coast, one of the wealthiest and fastest growing areas in the nation.

Cautionary Notice Regarding Forward-Looking Statements

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

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

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

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2008 under “Special Cautionary Notice Regarding Forward-Looking Statements” and “Risk Factors”, and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC’s Internet website at http://www.sec.gov.


FINANCIAL HIGHLIGHTS (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	Three Months Ended									Six Months Ended
(Dollars in thousands,	June 30,									June 30,
except per share data)	2009				2008				2009					2008
Summary of Earnings
Net income (loss)	$	(13,187	)		$	(21,316	)		$(17,497)					$	(19,553	)
Net income (loss), available
to common shareholders		(14,124	)			(21,316	)		(19,821)						(19,553	)
Net interest income (1)		18,987				20,234					37,228				40,796
Performance Ratios
Return on average assets-GAAP basis (2), (3)		(2.34	)	%		(3.65	)	%			(1.54	)	%		(1.67	)	%
Return on average tangible assets (2), (3), (4)		(2.33	)			(3.70	)				(1.54	)			(1.68	)
Return on average shareholders’ equity -GAAP basis (2), (3)		(25.07	)			(39.79	)				(16.77	)			(18.22	)
Net interest margin (1), (2)		3.65				3.69					3.54				3.71
Per Share Data
Net income (loss) diluted-GAAP basis	$	(0.74	)		$	(1.12	)			$	(1.04	)		$	(1.03	)
Net income (loss) basic-GAAP basis		(0.74	)			(1.12	)				(1.04	)			(1.03	)
Cash dividends declared		0				0.16					0.01				0.32


	June 30,				Increase/
	2009			2008				(Decrease)
Credit Analysis
Net charge-offs year-to-date	$	23,649		$		37,942			(37.7	)	%
Net charge-offs to average loans		2.89	%			4.07	%		(29.0	)
Loan loss provision year-to-date	$	37,879		$		47,737			(20.6	)
Allowance to loans at end of period		2.75	%			1.75	%		57.1
Nonperforming loans	$	126,758		$		76,224			66.3
Other real estate owned		23,259				4,547			411.6

Total nonperforming assets		150,017				80,771			85.7

Restructured loans (accruing)		14,789				11			n/m
Nonperforming assets to loans and other real estate owned at end of period		9.33	%			4.45	%		109.7
Nonperformng assets to total assets		6.86				3.52			95.5
Selected Financial Data
Total assets	$	2,186,548		$		2,296,999			(4.8	)
Securities – Available for sale (at fair value)		337,746				255,798			32.0
Securities – Held for investment (at amortized cost)		22,299				29,913			(25.5	)
Net loans		1,540,722				1,777,090			(13.3	)
Deposits		1,756,422				1,890,401			(7.1	)
Total shareholders’ equity		198,368				190,182			4.3
Common shareholders’ equity		153,956				190,182			(19.0	)
Book value per share common		8.03				9.90			(18.8	)
Tangible book value per share		7.50				6.97			7.6
Tangible common book value per share (5)		5.19				6.97			(25.6	)
Average shareholders’ equity to average assets		9.40	%			9.17	%		2.6
Tangible common equity to tangible assets (5), (6)		4.66				6.00			(22.3	)
Average Balances (Year-to-Date)
Total assets	$	2,285,808		$		2,353,639			(2.9	)
Less: Intangible assets		54,874				56,133			(2.2	)

Total average tangible assets	$	2,230,934		$		2,297,506			(2.9	)

Total equity	$	214,782		$		215,865			(0.5	)
Less: Intangible assets		54,874				56,133			(2.2	)

Total average tangible equity	$	159,908		$		159,732			0.1

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

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

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

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

(5) The Company defines tangible common equity as total shareholders equity less preferred stock and intangible assets

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

n/m = not meaningful

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)		2009			2008 2009						2008
Interest on securities:
Taxable	$		4,299		$	3,531			8,219			$	7,117
Nontaxable			76			90			160				180
Interest and fees on loans			21,638			28,197			44,798				59,379
Interest on federal funds sold and other investments			109			455			257				752

Total Interest Income			26,122			32,273			53,434				67,428
Interest on deposits			1,422			4,278			3,651				10,083
Interest on time certificates			4,772			6,356			10,530				13,129
Interest on borrowed money			1,008			1,477			2,159				3,569

Total Interest Expense			7,202			12,111			16,340				26,781

Net Interest Income			18,920			20,162			37,094				40,647
Provision for loan losses			26,227			42,237			37,879				47,737

Net Interest Income (Loss) After Provision for Loan Losses			(7,307	)		(22,075	)		(785	)			(7,090	)
Noninterest income:
Service charges on deposit accounts			1,562			1,812			3,147				3,662
Trust income			480			591			1,038				1,173
Mortgage banking fees			488			350			987				718
Brokerage commissions and fees			388			515			769				1,198
Marine finance fees			331			930			676				1,615
Debit card income			673			648			1,281				1,259
Other deposit based EFT fees			85			86			179				194
Merchant income			448			667			984				1,402
Other income			(527	)		243			(377	)			783

			3,928			5,842			8,684				12,004
Securities gains, net			1,786			355			1,786				355

Total Noninterest Income			5,714			6,197			10,470				12,359
Noninterest expenses:
Salaries and wages			6,761			7,428			13,649				15,363
Employee benefits			1,737			1,714			3,519				3,739
Outsourced data processing costs			1,806			1,983			3,697				3,997
Telephone / data lines			459			489			943				927
Occupancy			2,057			2,081			4,211				3,924
Furniture and equipment			678			747			1,329				1,435
Marketing			421			871			909				1,469
Legal and professional fees			1,603			932			2,995				1,858
FDIC assessments			2,026			392			2,903				451
Amortization of intangibles			314			314			629				629
Other			2,486			2,289			4,673				4,132

Total Noninterest Expenses			20,348			19,240			39,457				37,924
Income (Loss) Before Income Taxes			(21,941	)		(35,118	)		(29,772	)			(32,655	)
Provision (benefit) for income taxes			(8,754	)		(13,802	)		(11,825	)			(13,102	)

Net Income (Loss)	$		(13,187	)	$	(21,316	)		(17,947	)		$	(19,553	)
Preferred Stock Dividends and Accretion on Preferred Stock Discount			937			0			1,874				0
Net Income (Loss) Available to Common Shareholders			(14,124	)		(21,316	)		(19,821	)			(19,553	)
Per share common stock:
Net income (loss) diluted	$		(0.74	)	$	(1.12	)		(1.04	)		$	(1.03	)
Net income (loss) basic			(0.74	)		(1.12	)		(1.04	)			(1.03	)
Cash dividends declared			0			0.16			0.01				0.32
Average diluted shares outstanding	19,088,759					18,986,163			19,079,151				18,957,269
Average basic shares outstanding	19,088,759					18,986,163			19,079,151				18,957,269


CONDENSED CONSOLIDATED BALANCE SHEETS	(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	June 30,			December 31,			June 30,
(Dollars in thousands)	2009			2008			2008
Assets
Cash and due from banks	$	32,020		$	46,002			$	45,495
Federal funds sold		0			4,605				24,792
Interest bearing deposits with other banks		43,632			100,585				0

Total Cash and Cash Equivalents		75,652			151,192				70,287
Securities:
Available for sale (at fair value)		337,746			318,030				255,798
Held for investment (at amortized cost)		22,299			27,871				29,913

Total Securities		360,045			345,901				285,711
Loans available for sale		16,454			2,165				3,643
Loans, net of unearned income		1,584,340			1,676,728				1,808,787
Less: Allowance for loan losses		(43,618	)		(29,388	)			(31,697	)

Net Loans		1,540,722			1,647,340				1,777,090
Bank premises and equipment, net		42,879			44,122				42,888
Other real estate owned		23,259			5,035				4,547
Goodwill and other intangible assets		54,564			55,193				55,823
Other assets		72,973			63,488				57,010

	$	2,186,548		$	2,314,436			$	2,296,999

Liabilities and Shareholders’ Equity
Liabilities
Deposits
Demand deposits (noninterest bearing)	$	284,326		$	275,262			$	313,577
Savings deposits		780,386			802,201				938,645
Other time deposits		328,937			326,473				345,268
Brokered time certificates		64,244			100,463				0
Time certificates of $100,000 or more		298,529			306,042				283,911

Total Deposits		1,756,422			1,810,441				1,890,401
Federal funds purchased and securities sold under agreements to repurchase, maturing within 30 days		101,849			157,496				86,830
Borrowed funds		65,172			65,302				65,083
Subordinated debt		53,610			53,610				53,610
Other liabilities		11,127			11,586				10,893

		1,988,180			2,098,435				2,106,817
Shareholders’ Equity
Preferred stock		44,412			43,787				0
Common stock		1,917			1,928				1,928
Additional paid in capital		99,804			99,788				92,120
Retained earnings		51,127			70,278				96,741
Treasury stock		(1,458	)		(1,839	)			(964	)

		195,802			213,942				189,825
Accumulated other comprehensive gain, net		2,566			2,059				357

Total Shareholders’ Equity		198,368			216,001				190,182

	$	2,186,548		$	2,314,436			$	2,296,999

Common Share Outstanding		19,170,788			19,171,779				19,219,113

Note: The balance sheet at December 31, 2008 has been derived from the audited financial statements at that date.


CONSOLIDATED QUARTERLY FINANCIAL DATA				(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	Quarters
	2009										2008											Last 12
(Dollars in thousands,
except per share data)	Second					First								Fourth			Third				Months

Net income (loss)	$	(13,187	)			$	(4,760	)		$(22,596)						$(3,448)					$(43,991)
Operating Ratios
Return on average
assets-GAAP basis (2), (3)		(2.34	)		%		(0.83	)	%			(3.99	)		%			(0.60	)	%	(1.93)			%
Return on average tangible
assets (2), (3), (4)		(2.33	)				(0.82	)				(4.05	)					(0.58	)		(1.94)
Return on average shareholders’ equity-GAAP
basis (2), (3)		(25.07	)				(8.83	)		(45.92)								(7.13	)		(21.53)
Net interest margin (1), (2)		3.65					3.44					3.32						3.57					3.55
Average equity to average assets		9.34					9.45					8.68						8.43					8.97
Credit Analysis
Net charge-offs	$	15,109				$	8,540			$33,916							$	9,290			$66,855
Net charge-offs to average loans		3.71			%		2.07		%			7.76			%			2.06		%			3.91	%
Loan loss provision	$	26,227				$	11,652			$30,656						$10,241					$78,776
Allowance to loans at end of period		2.75			%		1.99		%			1.75			%			1.87		%
Restructured loans (accruing)		14,789					3,309					12,616						10
Nonperforming loans		126,758					109,381					86,970						75,793
Other real estate owned		23,259					12,684					5,035						4,551

Nonperforming assets	$	150,017				$	122,065			$92,005						$80,344

Nonperforming assets to loans and other real estate owned at end of period		9.33			%		7.42		%			5.47			%			4.60		%
Nonperforming assets to total assets		6.86					5.29					3.97						3.61
Nonaccrual loans and accruing loans 90 days or more past due to loans outstanding at end of period		8.09					6.97					5.30						4.42
Per Share Common Stock
Net income (loss)
diluted-GAAP basis	$	(0.74	)			$	(0.30	)		$(1.19)						$(0.18)					$(2.41)
Net income (loss) basic-GAAP
basis		(0.74	)				(0.30	)				(1.19	)					(0.18	)		(2.41)
Cash dividends declared		0					0.01					0.01						0.01					0.03
Book value per share		8.03					8.86					8.98						9.59
Average Balances
Total assets	$	2,258,792				$	2,313,125			$2,255,036						$2,282,821
Less: Intangible assets		54,717					55,033					55,346						55,662

Total average tangible assets	$	2,204,075				$	2,258,092			$2,199,690						$2,227,159

Total equity	$	210,997				$	218,609			$195,770						$192,469
Less: Intangible assets		54,717					55,033					55,346						54,662

Total average tangible equity	$	156,280				$	163,576			$140,424						$136,807

(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) on available for sale securities because the unrealized gains (losses) are not included in net income (loss).

CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited) (continued)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

(Dollars in thousands)


	June 30,		December 31,		June 30,
SECURITIES	2009		2008		2008
U.S. Treasury and U.S. Government Agencies	$	1,103	$	22,380	$	22,452
Mortgage-backed		331,337		290,423		227,977
Obligations of states and political subdivisions		2,033		2,070		2,033
Other securities		3,273		3,157		3,336

Securities — Available for Sale		337,746		318,030		255,798

Mortgage-backed		17,570		22,248		23,772
Obligations of states and political subdivisions		4,729		5,623		6,141

Securities — Held for Investment		22,299		27,871		29,913

Total Securities	$	360,045	$	345,901	$	285,711


	June 30,		December 31,		June 30,
LOANS	2009		2008		2008
Construction and land development	$	307,708	$	395,243	$	540,283
Real estate mortgage		1,135,311		1,125,465		1,097,232
Installment loans to individuals		69,165		72,908		76,098
Commercial and financial		71,836		82,765		94,812
Other loans		320		347		362

Total Loans	$	1,584,340	$	1,676,728	$	1,808,787

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

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


	2009												2008
	Second Quarter						First Quarter						Second Quarter

	Average			Yield/			Average			Yield/			Average			Yield/
(Dollars in thousands)	Balance			Rate			Balance			Rate			Balance			Rate

Assets
Earning assets:
Securities:
Taxable	$	356,582			4.82	%	$	351,286			4.46	%	$	280,623			5.03	%
Nontaxable		7,048			6.53			7,646			6.59			8,164			6.57

Total Securities		363,630			4.86			358,932			4.51			288,787			5.08
Federal funds sold and other investments		92,160			0.47			121,633			0.49			64,558			2.83
Loans, net		1,631,715			5.33			1,670,353			5.63		$	1,854,015			6.12

Total Earning Assets		2,087,505			5.03			2,150,918			5.16			2,207,360			5.89
Allowance for loan losses		(31,445	)					(31,392	)					(22,992	)
Cash and due from banks		32,545						33,665						46,057
Premises and equipment		43,380						44,128						42,885
Other assets		126,807						115,806						76,439

	$	2,258,792					$	2,313,125					$	2,349,749

Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
NOW	$	53,723			0.55	%	$	53,373			0.57	%	$	70,135			1.47	%
Savings deposits		103,778			0.43			99,712			0.56			106,277			0.72
Money market accounts		650,911			0.76			664,946			1.23			788,389			1.95
Time deposits		682,970			2.80			718,008			3.25			641,092			3.99
Federal funds purchased and other short-term borrowings		136,786			0.33			154,185			0.49			90,136			1.47
Other borrowings		118,832			3.02			118,894			3.28			118,816			3.89

Total Interest-Bearing Liabilities		1,747,000			1.65			1,809,118			2.05			1,814,845			2.68
Demand deposits (noninterest-bearing)		281,736						274,363						316,614
Other liabilities		19,059						11,035						2,842

Total Liabilities		2,047,795						2,094,516						2,134,301
Shareholders’ equity		210,997						218,609						215,448

	$	2,258,792					$	2,313,125					$	2,349,749


Interest expense as a % of earning assets	1.38	%	1.72	%	2.21	%
Net interest income as a % of earning assets	3.65		3.44		3.69

(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.

QUARTERLY TRENDS – LOANS AT END OF PERIOD (Unaudited)

(Dollars in Millions)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


				2008
Construction and Land Development		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr

Residential:
Condominiums	>$4 million	$	30.6	$	26.3	$	19.6	$	8.6
	<$4 million		26.6		21.1		13.0		8.8
Town homes	>$4 million		19.4		17.1		17.1		0
	<$4 million		4.4		2.9		4.6		6.1
Single Family	>$4 million		20.8		21.2		13.5		11.9
Residences	<$4 million		35.9		28.3		23.7		14.9
Single Family	>$4 million		85.1		64.3		40.3		22.1
Land & Lots	<$4 million		27.0		30.8		29.9		30.7
Multifamily	>$4 million		7.8		7.8		7.8		7.8
	<$4 million		24.8		26.2		22.9		19.0

TOTAL	>$4 million		163.7		136.7		98.3		50.4
TOTAL	<$4 million		118.7		109.3		94.1		79.5

GRAND TOTAL		$	282.4	$	246.0	$	192.4	$	129.9

QUARTERLY TRENDS – LOANS AT END OF PERIOD (Unaudited) (cont’d)

(Dollars in Millions)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


		2009				Nonperforming
Construction and Land Development		1st Qtr		2nd Qtr		2nd Qtr		Number

Residential:
Condominiums	>$4 million	$	8.4	$	7.9	$	7.9		1
	<$4 million		7.9		8.8		5.2		3
Town homes	>$4 million		0		0		0		0
	<$4 million		4.2		2.3		2.3		1
Single Family	>$4 million		6.6		6.5		0		0
Residences	<$4 million		13.9		10.3		5.0		10
Single Family	>$4 million		21.8		21.8		21.8		3
Land & Lots	<$4 million		29.6		21.5		9.2		19
Multifamily	>$4 million		7.8		7.8		7.8		1
	<$4 million		17.0		9.8		4.4		5

TOTAL	>$4 million		44.6		44.0		37.5		5
TOTAL	<$4 million		72.6		52.7		26.1		38

GRAND TOTAL		$	117.2	$	96.7	$	63.6		43


QUARTERLY TRENDS – LOANS AT END OF PERIOD (Unaudited)
(Dollars in Millions)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	2006
		4th Qtr

Construction and land development
Residential
Condominiums		$	94.8
Townhomes			10.4
Single family residences			80.3
Single family land and lots			106.3
Multifamily			48.2

			340.0
Commercial
Office buildings			14.1
Retail trade			16.1
Land			93.5
Industrial			6.3
Healthcare			2.0
Churches and educational facilities			2.1
Lodging			2.1
Convenience stores			0.5
Marina			2.2
Other			0.9

			139.8
Individuals
Lot loans			40.6
Construction			50.7

			91.3

Total construction and land development			571.1
Real estate mortgages
Residential real estate
Adjustable			277.7
Fixed rate			87.9
Home equity mortgages			95.9
Home equity lines			50.9

			512.4
Commercial real estate
Office buildings			109.2
Retail trade			50.9
Land			0
Industrial			64.3
Healthcare			40.7
Churches and educational facilities			32.3
Recreation			4.4
Multifamily			9.9
Mobile home parks			6.0
Lodging			19.1
Restaurant			11.7
Agricultural			26.1
Convenience stores			22.0
Other			40.8

			437.4

Total real estate mortgages			949.8
Commercial & financial			128.1
Installment loans to individuals
Automobile and trucks			22.3
Marine loans			32.5
Other			28.6

			83.4
Other			0.7

		$	1,733.1

QUARTERLY TRENDS – LOANS AT END OF PERIOD (Unaudited) (cont’d)

(Dollars in Millions)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


	2007
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr

Construction and land development
Residential
Condominiums	$	84.4	$	74.2	$	72.5	$	60.2
Townhomes		9.9		11.3		25.0		25.0
Single family residences		100.9		66.6		63.9		59.0
Single family land and lots		107.7		129.0		128.4		116.4
Multifamily		48.7		46.6		33.8		34.5

		351.6		327.7		323.6		295.1
Commercial
Office buildings		17.6		19.2		22.4		30.9
Retail trade		12.5		26.4		50.2		69.0
Land		93.4		99.4		86.2		82.6
Industrial		8.9		13.1		16.9		13.0
Healthcare		2.5		3.0		1.0		1.0
Churches and educational facilities		1.8		1.9		1.9		0
Lodging		4.8		11.2		11.2		11.2
Convenience stores		0.5		1.0		1.4		1.7
Marina		2.2		2.2		21.9		23.1
Other		2.8		12.8		8.6		9.9

		147.0		190.2		221.7		242.4
Individuals
Lot loans		40.5		40.0		40.7		39.4
Construction		41.7		43.6		41.0		32.7

		82.2		83.6		81.7		72.1

Total construction and land development		580.8		601.5		627.0		609.6
Real estate mortgages
Residential real estate
Adjustable		285.4		298.4		313.0		319.5
Fixed rate		87.9		87.6		88.1		87.5
Home equity mortgages		97.3		90.0		90.8		91.4
Home equity lines		51.4		56.6		55.1		59.1

		522.0		532.6		547.0		557.5
Commercial real estate
Office buildings		113.4		116.1		125.6		131.7
Retail trade		62.0		62.8		74.9		76.2
Land		0		0		2.6		5.3
Industrial		66.3		84.7		100.2		105.5
Healthcare		40.5		39.7		33.2		32.4
Churches and educational facilities		32.9		32.7		36.0		40.2
Recreation		4.4		4.5		4.7		3.0
Multifamily		8.4		10.4		11.3		13.8
Mobile home parks		3.0		4.0		4.0		3.9
Lodging		16.9		16.8		22.3		22.7
Restaurant		11.2		9.6		7.2		8.2
Agricultural		24.5		23.4		19.6		12.9
Convenience stores		22.2		23.6		23.5		23.2
Other		38.8		30.5		39.7		38.3

		444.5		458.8		504.8		517.3

Total real estate mortgages		966.5		991.4		1,051.8		1,074.8
Commercial & financial		112.1		139.0		135.1		126.7
Installment loans to individuals
Automobile and trucks		23.3		23.6		24.8		25.0
Marine loans		30.1		26.6		24.8		33.2
Other		29.8		29.4		29.0		28.2

		83.2		79.6		78.6		86.4
Other		0.7		1.6		0.6		0.9

	$	1,743.3	$	1,813.1	$	1,893.1	$	1,898.4

QUARTERLY TRENDS – LOANS AT END OF PERIOD (Unaudited) (cont’d)

(Dollars in Millions)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


	2008
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr

Construction and land development
Residential
Condominiums	$	57.2	$	47.4	$	32.6	$	17.4
Townhomes		23.8		20.0		21.7		6.1
Single family residences		56.7		49.5		37.2		26.8
Single family land and lots		112.1		95.1		70.2		52.8
Multifamily		32.6		34.0		30.7		26.8

		282.4		246.0		192.4		129.9
Commercial
Office buildings		29.1		31.1		27.8		17.3
Retail trade		60.4		63.6		68.5		68.7
Land		92.5		75.4		73.9		73.3
Industrial		16.9		20.8		20.7		13.3
Healthcare		1.0		1.0		0		0
Churches and educational facilities		0		0.1		0		0
Lodging		0		0		0		0
Convenience stores		1.8		0		0		0
Marina		26.8		28.9		30.5		30.7
Other		11.3		6.3		5.4		6.0

		239.8		227.2		226.8		209.3
Individuals
Lot loans		39.4		40.0		38.4		35.7
Construction		32.4		27.1		27.4		20.3

		71.8		67.1		65.8		56.0

Total construction and land development		594.0		540.3		485.0		395.2
Real estate mortgages
Residential real estate
Adjustable		317.6		318.8		316.5		329.0
Fixed rate		89.1		90.2		93.4		95.5
Home equity mortgages		91.7		93.1		84.3		84.8
Home equity lines		56.3		59.4		59.7		58.5

		554.7		561.5		553.9		567.8
Commercial real estate
Office buildings		144.3		142.3		143.6		146.4
Retail trade		83.8		93.5		101.6		111.9
Land		0		0		0.6		0
Industrial		104.3		93.3		92.2		94.7
Healthcare		39.9		33.6		31.6		29.2
Churches and educational facilities		40.2		36.5		35.6		35.2
Recreation		2.8		1.8		1.8		1.7
Multifamily		20.0		19.1		19.2		27.2
Mobile home parks		3.2		3.1		3.1		3.0
Lodging		27.9		28.0		26.7		26.6
Restaurant		8.0		9.0		8.6		6.2
Agricultural		12.4		9.0		8.7		8.5
Convenience stores		23.1		24.9		23.6		23.5
Other		40.1		41.6		42.5		43.6

		550.0		535.7		539.4		557.7

Total real estate mortgages		1,104.7		1,097.2		1,093.3		1,125.5
Commercial & financial		93.9		94.8		88.5		82.8
Installment loans to individuals
Automobile and trucks		24.1		23.0		21.9		20.8
Marine loans		33.3		25.2		26.0		26.0
Other		27.5		27.9		27.4		26.1

		84.9		76.1		75.3		72.9
Other		0.5		0.4		0.5		0.3

	$	1,878.0	$	1,808.8	$	1,742.6	$	1,676.7

QUARTERLY TRENDS – LOANS AT END OF PERIOD (Unaudited) (cont’d)

(Dollars in Millions)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


	2009
	1st Qtr		2nd Qtr

Construction and land development
Residential
Condominiums	$	16.3	$	16.8
Townhomes		4.2		2.3
Single family residences		20.5		16.7
Single family land and lots		51.4		43.3
Multifamily		24.8		17.6

		117.2		96.7
Commercial
Office buildings		17.4		13.8
Retail trade		70.0		55.9
Land		60.9		51.2
Industrial		9.0		8.5
Healthcare		5.7		6.0
Churches and educational facilities		0		0
Lodging		0.6		0
Convenience stores		0		0
Marina		31.6		30.0
Other		6.2		1.4

		201.4		166.8
Individuals
Lot loans		34.0		32.4
Construction		16.2		11.8

		50.2		44.2

Total construction and land development		368.8		307.7
Real estate mortgages
Residential real estate
Adjustable		333.1		328.0
Fixed rate		90.8		90.6
Home equity mortgages		85.5		83.8
Home equity lines		60.3		60.1

		569.7		562.5
Commercial real estate
Office buildings		140.6		141.6
Retail trade		109.1		120.0
Land		0		0
Industrial		95.3		93.0
Healthcare		28.3		30.9
Churches and educational facilities		34.8		34.6
Recreation		1.7		1.4
Multifamily		27.2		31.7
Mobile home parks		3.0		5.6
Lodging		26.3		26.3
Restaurant		6.1		5.1
Agricultural		8.2		11.8
Convenience stores		23.3		23.2
Other		43.0		47.6

		546.9		572.8

Total real estate mortgages		1,116.6		1,135.3
Commercial & financial		75.5		71.8
Installment loans to individuals
Automobile and trucks		19.4		18.0
Marine loans		26.3		26.9
Other		25.7		24.3

		71.4		69.2
Other		0.3		0.3

	$	1,632.6	$	1,584.3

QUARTERLY TRENDS – INCREASE (DECREASE) IN LOANS BY QUARTER (Unaudited)

(Dollars in Millions)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


	2007
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr

Construction and land development
Residential
Condominiums	$	(10.4	)	$	(10.2	)	$	(1.7	)	$	(12.3	)
Townhomes		(0.5	)		1.4			13.7			0
Single family residences		20.6			(34.3	)		(2.7	)		(4.9	)
Single family land and lots		1.4			21.3			(0.6	)		(12.0	)
Multifamily		0.5			(2.1	)		(12.8	)		0.7

		11.6			(23.9	)		(4.1	)		(28.5	)
Commercial
Office buildings		3.5			1.6			3.2			8.5
Retail trade		(3.6	)		13.9			23.8			18.8
Land		(0.1	)		6.0			(13.2	)		(3.6	)
Industrial		2.6			4.2			3.8			(3.9	)
Healthcare		0.5			0.5			(2.0	)		0
Churches and educational facilities		(0.3	)		0.1			0			(1.9	)
Lodging		2.7			6.4			0			0
Convenience stores		0			0.5			0.4			0.3
Marina		0			0			19.7			1.2
Other		1.9			10.0			(4.2	)		1.3

		7.2			43.2			31.5			20.7
Individuals
Lot loans		(0.1	)		(0.5	)		0.7			(1.3	)
Construction		(9.0	)		1.9			(2.6	)		(8.3	)

		(9.1	)		1.4			(1.9	)		(9.6	)

Total construction and land development		9.7			20.7			25.5			(17.4	)
Real estate mortgages
Residential real estate
Adjustable		7.7			13.0			14.6			6.5
Fixed rate		0			(0.3	)		0.5			(0.6	)
Home equity mortgages		1.4			(7.3	)		0.8			0.6
Home equity lines		0.5			5.2			(1.5	)		4.0

		9.6			10.6			14.4			10.5
Commercial real estate
Office buildings		4.2			2.7			9.5			6.1
Retail trade		11.1			0.8			12.1			1.3
Land		0			0			2.6			2.7
Industrial		2.0			18.4			15.5			5.3
Healthcare		(0.2	)		(0.8	)		(6.5	)		(0.8	)
Churches and educational facilities		0.6			(0.2	)		3.3			4.2
Recreation		0			0.1			0.2			(1.7	)
Multifamily		(1.5	)		2.0			0.9			2.5
Mobile home parks		(3.0	)		1.0			0			(0.1	)
Lodging		(2.2	)		(0.1	)		5.5			0.4
Restaurant		(0.5	)		(1.6	)		(2.4	)		1.0
Agricultural		(1.6	)		(1.1	)		(3.8	)		(6.7	)
Convenience stores		0.2			1.4			(0.1	)		(0.3	)
Other		(2.0	)		(8.3	)		9.2			(1.4	)

		7.1			14.3			46.0			12.5

Total real estate mortgages		16.7			24.9			60.4			23.0
Commercial & financial		(16.0	)		26.9			(3.9	)		(8.4	)
Installment loans to individuals
Automobile and trucks		1.0			0.3			1.2			0.2
Marine loans		(2.4	)		(3.5	)		(1.8	)		8.4
Other		1.2			(0.4	)		(0.4	)		(0.8	)

		(0.2	)		(3.6	)		(1.0	)		7.8
Other		0			0.9			(1.0	)		0.3

	$	10.2		$	69.8		$	80.0		$	5.3

QUARTERLY TRENDS – INCREASE (DECREASE) IN LOANS BY QUARTER (cont’d)

(Dollars in Millions) (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


	2008
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr

Construction and land development
Residential
Condominiums	$	(3.0	)	$	(9.8	)	$	(14.8	)	$	(15.2	)
Townhomes		(1.2	)		(3.8	)		1.7			(15.6	)
Single family residences		(2.3	)		(7.2	)		(12.3	)		(10.4	)
Single family land and lots		(4.3	)		(17.0	)		(24.9	)		(17.4	)
Multifamily		(1.9	)		1.4			(3.3	)		(3.9	)

		(12.7	)		(36.4	)		(53.6	)		(62.5	)
Commercial
Office buildings		(1.8	)		2.0			(3.3	)		(10.5	)
Retail trade		(8.6	)		3.2			4.9			0.2
Land		9.9			(17.1	)		(1.5	)		(0.6	)
Industrial		3.9			3.9			(0.1	)		(7.4	)
Healthcare		0			0			(1.0	)		0
Churches and educational facilities		0			0.1			(0.1	)		0
Lodging		(11.2	)		0			0			0
Convenience stores		0.1			(1.8	)		0			0
Marina		3.7			2.1			1.6			0.2
Other		1.4			(5.0	)		(0.9	)		0.6

		(2.6	)		(12.6	)		(0.4	)		(17.5	)
Individuals
Lot loans		0			0.6			(1.6	)		(2.7	)
Construction		(0.3	)		(5.3	)		0.3			(7.1	)

		(0.3	)		(4.7	)		(1.3	)		(9.8	)

Total construction and land development		(15.6	)		(53.7	)		(55.3	)		(89.8	)
Real estate mortgages
Residential real estate
Adjustable		(1.9	)		1.2			(2.3	)		12.5
Fixed rate		1.6			1.1			3.2			2.1
Home equity mortgages		0.3			1.4			(8.8	)		0.5
Home equity lines		(2.8	)		3.1			0.3			(1.2	)

		(2.8	)		6.8			(7.6	)		13.9
Commercial real estate
Office buildings		12.6			(2.0	)		1.3			2.8
Retail trade		7.6			9.7			8.1			10.3
Land		(5.3	)		0			0.6			(0.6	)
Industrial		(1.2	)		(11.0	)		(1.1	)		2.5
Healthcare		7.5			(6.3	)		(2.0	)		(2.4	)
Churches and educational facilities		0			(3.7	)		(0.9	)		(0.4	)
Recreation		(0.2	)		(1.0	)		0			(0.1	)
Multifamily		6.2			(0.9	)		0.1			8.0
Mobile home parks		(0.7	)		(0.1	)		0			(0.1	)
Lodging		5.2			0.1			(1.3	)		(0.1	)
Restaurant		(0.2	)		1.0			(0.4	)		(2.4	)
Agricultural		(0.5	)		(3.4	)		(0.3	)		(0.2	)
Convenience stores		(0.1	)		1.8			(1.3	)		(0.1	)
Other		1.8			1.5			0.9			1.1

		32.7			(14.3	)		3.7			18.3

Total real estate mortgages		29.9			(7.5	)		(3.9	)		32.2
Commercial & financial		(32.8	)		0.9			(6.3	)		(5.7	)
Installment loans to individuals
Automobile and trucks		(0.9	)		(1.1	)		(1.1	)		(1.1	)
Marine loans		0.1			(8.1	)		0.8			0
Other		(0.7	)		0.4			(0.5	)		(1.3	)

		(1.5	)		(8.8	)		(0.8	)		(2.4	)
Other		(0.4	)		(0.1	)		0.1			(0.2	)

	$	(20.4	)	$	(69.2	)	$	(66.2	)	$	(65.9	)

QUARTERLY TRENDS – INCREASE (DECREASE) IN LOANS BY QUARTER (cont’d)

(Dollars in Millions) (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


	2009
	1st Qtr			2nd Qtr

Construction and land development
Residential
Condominiums	$	(1.1	)	$	0.5
Townhomes		(1.9	)		(1.9	)
Single family residences		(6.3	)		(3.8	)
Single family land and lots		(1.4	)		(8.1	)
Multifamily		(2.0	)		(7.2	)

		(12.7	)		(20.5	)
Commercial
Office buildings		0.1			(3.6	)
Retail trade		1.3			(14.1	)
Land		(12.4	)		(9.7	)
Industrial		(4.3	)		(0.5	)
Healthcare		5.7			0.3
Churches and educational facilities		0			0
Lodging		0.6			(0.6	)
Convenience stores		0			0
Marina		0.9			(1.6	)
Other		0.2			(4.8	)

		(7.9	)		(34.6	)
Individuals
Lot loans		(1.7	)		(1.6	)
Construction		(4.1	)		(4.4	)

		(5.8	)		(6.0	)

Total construction and land development		(26.4	)		(61.1	)
Real estate mortgages
Residential real estate
Adjustable		4.1			(5.1	)
Fixed rate		(4.7	)		(0.2	)
Home equity mortgages		0.7			(1.7	)
Home equity lines		1.8			(0.2	)

		1.9			(7.2	)
Commercial real estate
Office buildings		(5.8	)		1.0
Retail trade		(2.8	)		10.9
Land		0			0
Industrial		0.6			(2.3	)
Healthcare		(0.9	)		2.6
Churches and educational facilities		(0.4	)		(0.2	)
Recreation		0			(0.3	)
Multifamily		0			4.5
Mobile home parks		0			2.6
Lodging		(0.3	)		0
Restaurant		(0.1	)		(1.0	)
Agricultural		(0.3	)		3.6
Convenience stores		(0.2	)		(0.1	)
Other		(0.6	)		4.6

		(10.8	)		25.9

Total real estate mortgages		(8.9	)		18.7
Commercial & financial		(7.3	)		(3.7	)
Installment loans to individuals
Automobile and trucks		(1.4	)		(1.4	)
Marine loans		0.3			0.6
Other		(0.4	)		(1.4	)

		(1.5	)		(2.2	)
Other		0			0

	$	(44.1	)	$	(48.3	)

EXHIBIT 99.2
To Form 8-K dated July 27, 2009

Second Quarter 2009 Earnings Release
Seacoast Banking Corporation
July 28, 2009
10:00 a.m. Eastern Time


Operator:		Good morning, ladies and gentlemen, and welcome to the Second Quarter Earnings Release Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded.
		I will now turn the call over to Mr. Dennis S. Hudson. Mr. Hudson, you may begin.
Dennis S. Hudson III:		Thank you very much, and welcome to Seacoast’s Second Quarter 2009 Earnings Conference Call. Before we begin, we will direct your attention to the statement contained at the end of our press release regarding forward statements. During the call, we will be discussing certain issues that constitute forward-looking statements within the meaning of the Securities and Exchange Act, and our comments are intended to be covered within the meaning of Section 27A of that Act.
		Today with me is Jean Strickland, our President and Chief Credit Officer; Russ Holland, our Chief Banking Officer; and Bill Hahl, our Chief Financial Officer.
		Our earnings for this quarter were impacted by a large reserve build related to our CRE and residential mortgage portfolios and loan charge-offs as we achieved a significant run off of our overall construction loan exposure. Our construction portfolio, particularly the residential construction and development loan portfolio, has produced very significant losses over the past five quarters. By aggressively working this portfolio down, we are reducing credit risk. This is the key to lower credit costs in the future.
		Our net loss for the quarter totaled $13.2 million, which was down from the prior year’s loss of $21.3 million and up from the $4.8 million in the first quarter of this year. Including the accrual of dividends and accretion associated with our preferred stock outstanding, this resulted in a loss of $0.74 per share, down from the loss of $1.12 per share in the prior year.
		While our earnings this quarter clearly remained under pressure with continued levels of high credit costs, we were pleased again this quarter—for the second quarter in a row—to report some fairly significant and very real improvements in our core earnings pre/pre, that is pre-credit costs and pre-tax. This improvement was related to solid performance by our core deposit franchise, which Bill will speak to in a moment. Capital ratios remain strong for the quarter with our risk-based capital ratio estimated at 13.4 percent at quarter end. This is well in excess of the 10 percent target for banks that are well capitalized and 8 percent for banks that are classified as adequately capitalized. And liquidity remains strong during the quarter with good growth in checking balances over the quarter with core deposit improvements, with no overnight borrowings, and approximately $700 million of liquidity available.
		This quarter, we believe we arrived at an important progress point regarding our construction loan exposures. As you know, we have been working for two years now to reduce our construction loan exposures. We announced in the first quarter of 2007 that the residential market was turning, that we had undertaken a review of our residential construction and development exposures, and that we were building our reserves in response to early deterioration. As a reminder, residential construction and development loans are loans to builders and developers for the development of lots and homes for sale. Taking this action early in the cycle allowed us to identify problems early and work to reduce exposures aggressively through loan sales, workout strategies with borrowers, and through foreclosure action. Residential construction and development loans, which achieved a high point of over $350 million in 2007, have now, this quarter, been reduced by over 73 percent and stand at $97 million. Larger balance loans, that is loans that are $4 million and greater in size, in this portfolio have been reduced even further and stand today at only $44 million, most of which ($38 million) is currently on nonaccrual. This quarter, we can safely say this entire portfolio is now in the active process of liquidation, with formal workout plans in place which are designed to help achieve an orderly and substantial liquidation over the next few months.

Given that this portfolio, which has produced our most significant losses to date, is now fully covered with specific plans for liquidation, we believe aggregate loss exposure in this portfolio will moderate significantly in the second half of this year. Simply put, we had liquidated over $250 million in this portfolio, or 71 percent to date. The remaining balance is now much smaller, both in the aggregate and in terms of loan size; and the remaining portfolio, which has been well scrubbed and appropriately valued, is in the final stages of workout and liquidation. Losses coming out of this portfolio going forward will simply be a function of final liquidation costs as the portfolio is fully eliminated.

Our commercial construction and development portfolio, which has performed fairly well, has also showed a significant reduction this quarter, declining by 17 percent on a linked quarter basis. Overall, construction loan exposure, both our residential and commercial construction, has now been reduced to less than half of that reported at its high point in 2007. I would direct your attention to the press release where we detailed out a lot of this reduction for both residential and commercial construction loans that has occurred this quarter and over the last year and a half or so.

Nonperforming loans grew to 8 percent of loans this quarter, up from 7 percent last quarter, with most of the $17 million in growth coming from our residential home mortgage portfolio. Growth in nonperforming loans in the construction portfolio slowed considerably for the reasons I have just stated. We said last quarter that we would be pursuing troubled debt restructures with our home mortgage customers and about one-third of our nonperforming home mortgage loans are actually performing in accordance with their restructured terms. These loans will move to a performing status provided they perform for a period of time.

Past due loans and early stage delinquencies also improved in the residential portfolio, reducing to $3.7 million at the end of June from $10.6 million at the end of last quarter. Early stage and past due credit in our other portfolios remained modest and changed very little from the prior quarter. We are seeing some evidence that early stage delinquency is improving across the board.

Now I’d like to turn the call over to Bill for a few more comments on the quarter. Bill.


William R. Hahl:		Thank you, Denny. We posted some slides on our website that I’ll be referring to throughout my comments today, but first I have a few high level comments about the operating results. Results for the quarter were reduced by a special assessment from the FDIC which totaled $0.03 per diluted share. This cost was offset by gains on the sale of securities, which increased earnings by about $0.06 per diluted share. We also recorded, as Denny mentioned, a $26.2 million provision for credit losses in the second quarter. The provision exceeded losses for the quarter by $11.1 million and increased the allowance to total loans to 2.75 percent, up 76 basis points from the first quarter.
		The slide on page 3 shows some highlights for the quarter. Margin results for the second quarter were positive, increasing by 21 basis points to 3.65 percent—quite good considering the difficult economic conditions and the aggressive measures we have taken relating to the challenging credit environment. I’ll have more to say on the margin in a later slide.
		Next I have some comments regarding our funding and liquidity position, and I refer you to the slide on page 4. Our funding and liquidity levels have remained strong throughout this economic downturn with no change in borrowed funds. Our funding strategy remains centered on stable retail and commercial relationship deposits, which fund more than 100 percent of loans. Wholesale funding in the past has been mostly used for seasonal fluctuations in deposits or to pre-fund known deposit increases or for ALCO strategies. At quarter end, deposits and customers sweep repos comprised 92 percent of total funding. Broker time deposits declined by $35 million during the quarter and were partially offset by increases in demand and savings deposits, which increased during the quarter. As Denny mentioned, our combined available contingent liquidity from all funding sources, pledge-free securities, and cash on hand at quarter end was approximately $700 million.
		Moving to the capital ratio slide on page 5: Since receiving $50 million in capital from the Treasury’s CPP Program in December 2008 and the resulting improvement in most capital ratios, the Company and the Bank have maintained strong regulatory capital ratios and are classified as well capitalized. As Denny mentioned, total risk-based capital was 13.49 percent at June 30, 2009, down 51 basis points from year-end. Good progress has been made in adjusting our credit risk profile since year-end through reducing loan balances by $92 million, increasing the allowance for loan losses by $14.2 million, and reducing total assets by $128 million. While regulatory ratios remain strong, we have filed an S-1 Registration Statement, which replaces our Shelf Registration Statement for future capital needs. The Company’s 34 Act filings, which are incorporated by reference in the S-1, are under review by the SEC. The S-1 is not effective, so we are precluded from commenting further on any potential future capital raise.
		Moving to the noninterest expense slide on page 6: On past calls, we have prepared a summary of our noninterest expenses resulting from items occurring in the quarters that were nonrecurring or are credit related. While we are trying to control all costs during this extraordinary period, credit related costs are not as controllable as we would like. This slide shows that overhead has been reduced more than is visible from a normal income statement perspective. Expenses have been well managed and core operating expenses are declining, but credit related expenses continue to impact results. Adjusting for these items, the second quarter overhead has declined by 2.7 percent when compared to the first quarter. Increased credit related costs and FDIC insurance compared to the first quarter has been partially offset by comprehensive reductions in operating expenses previously implemented. We expect that additional expense savings measures will improve earnings over the remainder of the year and will range between $800,000 and $1 million.
		I’ll now take a moment to cover the margin on the slide on page 7. The margin increased this quarter and last quarter and has remained fairly stable the last four quarters, despite pressure from factors such as competition for CDs, increased nonperforming assets, and slower loan growth over the last 12 months, all of which have had negative impacts on the margin. Clearly the margin opportunities I discussed in last quarter’s call became realities during the quarter, such as better deposit mix as a result of our successful growth in retail deposit relationships over the past year, therefore allowing us to let CDs run off. Deposit cost competition has been more rational, which allowed us to be more aggressive in lowering rates paid. We believe that as the impacts of negative loan growth on our competitors’ grabs hold and their liquidity grows, deposit costs will also be able to be lowered throughout the rest of the year. While overall loan growth was negative, targeted areas such as plain vanilla residential mortgages performed well. This added growth was positive both to net interest income and the margin. To summarize, we believe that the margin will be stable and may increase due to lower deposit and repo costs, as a result of improved mix and our ability to continue to lower rates as the competition liquefies and has lower loan growth.
		Denny.
Dennis S. Hudson III:		Thank you, Bill. Now I thought I would give you an update regarding the residential housing markets here in Florida and make a few comments on the commercial real estate market. We are now seeing clear evidence that home prices in the harder hit markets in Florida are indeed stabilizing. In fact, for the Treasure Coast and Palm Beach County, we have seen a right angle turn in median home price declines along with continued strong year-over-year growth in sales activity. Home prices, which had been falling month after month, started reporting a flat result earlier this year. For the past six months, median home prices have flattened out and stopped falling in every one of our markets. Foreclosures still represent a large portion of sales, but overall inventory is declining in every one of our markets. Most importantly, affordability has returned to the market. Today in Florida, you can buy a home at pre-boom prices and finance it with a mortgage rate last seen in the 1940s. If you are a first-time homebuyer, you get a $8,000 tax credit to boot. The combination yields an improvement in affordability at a level prior to that seen in the year 2000, prior to the bubble. So it is clear to me that residential home values are becoming stable. We are now receiving reports of real buyer competition for selected properties, which is encouraging. We still, however, face the broader effects of this severe recession, including unemployment, and this will pose a challenge for us and everyone as we continue forward in 2009.
		Commercial real estate, as we said last quarter, is showing signs of stress, higher vacancies, higher cap rates, for example, which undoubtedly will impact value. But deterioration in this portfolio is unlikely to produce either the default levels or the loss content that we have seen in our construction portfolios.
		We said in our last call that our focus for the year would be growing our core deposit franchise and growing our residential mortgage lending production in response to the favorable interest rate environment. We have seen tremendous progress this quarter in both of these areas. This, combined with expense reduction, should continue to help us build our core earnings as it did in the first half of the year, which will be important as we continue to work through our remaining credit issues in the second half of 2009.
		Seacoast remains a remarkable value today. Our risks are well understood and communicated and we have made significant progress in reducing our risk over the past year or more, particularly in this most recent quarter as we discussed earlier. We continue to trade at a negative premium to our growing core deposit franchise, something remarkable to consider given our 80-year history and strong market penetration in what will be likely viewed as an increasingly attractive market as housing continues to stabilize.
		Now we’d be happy to take a few questions and so I’ll turn the call back over to our moderator.
Operator:		Thank you. We will now begin the question-and-answer session. If you have a question, please press star then one on your touchtone phone. If you wish to be removed from the queue, please press the pound sign or the hash key. If you’re using a speakerphone, you may need to pick up the handset first before pressing the numbers. Once again, if there are any questions, please press star then one on your touchtone phone.
		And our first question comes from Dave Bishop from Stifel Nicolaus. Please go ahead.
David Bishop:		Hey, good morning, Denny.
Dennis S. Hudson III:		Morning.
David Bishop:		Hey, this quarter you alluded that a lot of the losses continue to be driven by the residential A&D portfolio—looks like accumulative loss content from the peak through the first quarter is about 13 percent. In terms of second quarter losses, I don’t know if you have the dollar amount allocated to that book specifically?
Dennis S. Hudson III:		No, we don’t have that. I’ll have to follow-up with you maybe and give you come color on that. But the losses this quarter came primarily out of that portfolio and perhaps another chunk out of the residential home mortgage portfolio.
David Bishop:		In terms of loss severity, in terms of the residential mortgage versus the construction portfolio, especially on the residential, how have those trended thus far? I assume loss mitigation or early loss mitigation is helping dampen that relative to the residential A&D and lot development.
Dennis S. Hudson III:		Well first of all, our loss... I’m not quite sure I understood the question, but the loss mitigation work has been focused in two areas: one, primarily the residential home mortgage portfolio. This is comprised of loans to individuals, a conventional prime mortgage portfolio. With the stress that we have seen, we have instituted loss mitigation pretty aggressively in that portfolio; and as we stated in the press release, we have had about 100 mortgages a quarter getting modified, at least for the first and second quarters. We see that possibly moderating at this point. As we said, early stage delinquencies are down rather significantly in that portfolio at the end of June. So we’re... Again, I think we went through a bubble, if you will, that began to grow in December and hasn’t shown any tremendous growth recently. We’ve seen some early stage improvement actually in that portfolio. The losses in the residential portfolio that impacted us this quarter, and I’d say probably close to half of our losses in the quarter probably came out of that portfolio, had more to do with our approach to valuation in that portfolio. Given the severe declines that have occurred for residential homes in the market, when a home loan either is acknowledged as going into default, or at the very least by the time it hits 90 days, we are writing the value of that mortgage down based on what we think has happened to values in that vintage of appraisal and what the submarket is. I will tell you in St. Lucie County, for example, where we have seen the most severe price declines, that number in terms of the value decline off of an appraisal could be as high as 50 or 60 percent. We are actually taking most of that as an actual loss that day, when that loan goes to 90 days and is clearly headed for foreclosure and we have exhausted mitigation techniques, that sort of thing. So that was with us the last two quarters. It accelerated a little bit this quarter.

Then we have been at loss mitigation for well over a year in the residential construction portfolio. Here we are dealing with business borrowers. Again, we had three strategies for getting through that portfolio—to liquidate it. Number one, not necessarily in this order, would be note sales to speculators and investors. We have been pretty successful in that over the last year. Number two is a specific workout plan with a borrower to achieve better liquidation value of the collateral. We have a lot of that in place right now; in fact most of the balance, or well over half of that portfolio, is currently under workout under that strategy. And the third strategy is to liquidate post foreclosure, and actually get our hands on the property and liquidate it in a more conventional fashion. So we are approaching all of that with that portfolio. The key thing this quarter, though, is that this entire portfolio has now been either completely liquidated, or a plan is well underway to liquidate what’s left in the portfolio. I hope that answered your question.


David Bishop:		Yeah, that was good color.
Jean Strickland:		David, this is...
David Bishop:		And in terms of the debt restructuring there, you alluded that there is a certain period of time they will pay under those modified terms and when they go back to accrual status. I guess two questions: Is that a standard workout period, or is it loan by loan?
Dennis S. Hudson III:		There, David, we were talking primarily about consumer loans, in other words, consumer mortgage loans. If the guy has the capacity to pay the restructured payment, we typically would place him on nonaccrual, enter into the restructure, and if he performed for a period of six months successfully, then he would move out of nonaccrual loans and into accruing restructured loans. In the case of most of our commercial borrowers, there is, in most cases, insufficient evidence to place that loan back on accrual—even though it may be pursuing a restructured process to achieve liquidation that we are working with them on, and he may be making his interest payments out-of-pocket and that sort of thing. Very typically, we are not going to put that back on accrual. It’s just going to liquidate on out.
David Bishop:		Okay.
Jean Strickland:		David, just on the residential restructures, we are fully re-underwriting those. So despite the fact that we wait for some performance in some cases, we expect to achieve very good results in terms of not having the typical re-default rates that are discussed publicly in our restructures. We are also able to keep up with the requests of people before they go into default for modification. So I know there’s been a lot of publicity around the lack of success there on a national level, but we feel very good about what we are doing.
Dennis S. Hudson III:		And thus far—I mean this has been a fairly short period of time, four or five or six months that we have been working on the restructures—we have seen very little re-default so far.
David Bishop:		One final question, in terms of the restructurings: the interest payments under this, is that on a cash basis rather than accrual?
Jean Strickland:		Some of them are on a cash basis, yes.
Dennis S. Hudson III:		Yeah. By and large though, they are on nonaccrual; and the ones that would be on a cash basis, we disclosed in the accruing restructured. It’s not a cash accruing, but those are all current.
David Bishop:		Great. Thank you.
Dennis S. Hudson III:		Thank you, David.
Operator:		Our next question comes from Michael Sharmer from Raymond James. Please go ahead.
Michael Sharmer:		Good morning.
Dennis S. Hudson III:		Morning.
Michael Sharmer:		I was wondering if you could talk a little bit about the margin and where you see that headed over the next couple quarters and also if you plan to run off CD balances.
William R. Hahl:		Yeah. Well, summarizing what I said was that we think that the margin has the possibility for improving throughout the remainder of the year, but that will be more dependent upon our ability to lower interest rates on existing balances and that will be a function of the competition as well. In the case of CDs, that has kind of been the strategy, at least as it relates to the brokerage CDs. Just to remind everyone, we did, a year ago, execute a liquidity contingency test and raised about $70 million in brokered CDs. We have never done any of that, and we didn’t have any relationships; so we did that with the intent that if we didn’t need the money or we could grow our core franchise over the next 12 months, we’d allow that to run off. We are maintaining our overall good core customer CDs and those are repricing nicely. I think we talked about that last quarter: 325 [basis points] was the average yield. It is down to 280 [basis points] this quarter and the average add-on rate is anywhere, on a weekly basis, from a low of 140 [basis points] to a high of 190 [basis points] depending on the mix of the products.
Michael Sharmer:		Okay great. That’s helpful. And just switching gears a little bit, could you provide a breakdown of nonaccrual loans by category?
Dennis S. Hudson III:		Well, if you look in the press release, you’ll see a pretty robust breakdown in a table that we included this quarter. When you look at that, you can see that of $126 million in nonaccrual, the big chunks would $63 million in residential construction and land development, another $33 million in residential mortgage, and $19 million in the CRE portfolio. There’s some other dogs and cats there you can look at. It’s on the third or fourth page of the press release.
Michael Sharmer:		Sorry about that; missed that.
Dennis S. Hudson III:		That’s quite all right.
Michael Sharmer:		And did you... I may have missed this as well. Did you provide the total amount of 30-to-89 day past due loans?
Dennis S. Hudson III:		Yeah, we referenced it in the text and, again as I said, that was reduced fairly significantly during the quarter.
William R. Hahl:		What, three points?
Dennis S. Hudson III:		I think it was at $3.5 million or so. It’s in the press release.
Michael Sharmer:		I thought that was just for residential mortgage loans though.
Dennis S. Hudson III:		Yeah, very modest balances in the other portfolios.
Michael Sharmer:		Okay. All right, thank you very much.
Dennis S. Hudson III:		Uh-huh.
Operator:		Our next question comes from Christopher Marinac from FIG Partners. Please go ahead.
Christopher Marinac:		Hey, Denny/Bill, good morning.
Dennis S. Hudson III:		Morning.
Christopher Marinac:		I just wanted to ask, and you may have had this in the press release and I missed it, is there a way to get a cumulative number on OREO write-downs beyond what you just took in the second quarter?
Dennis S. Hudson III:		We have not disclosed much in the way of OREO right now. I think last quarter we disclosed the aggregate loss so far for the cycle for the entire loan portfolio and it was a little over 6 percent. That number grew obviously this quarter. We haven’t distinguished OREO, because we haven’t had a lot of OREO losses yet. But that’s a good point. As we said this quarter, we believe as we move into the final stages of liquidation through this—all this work we have been doing over the last two years really, but particularly over the last year or so— we will see OREO balances increase. Hopefully, we will see nonperforming loans decrease as it moves into, migrates into, OREO. And as that occurs, we will see how good our valuations were as we went into that. We think, as we stated in the discussion, that the remaining residential construction and development loan portfolio—which has been producing virtually the lion share of all of our loss exposure for the last year and a half—is now in full liquidation mode and is moving very rapidly, over the next year or so, towards final liquidation. That’s when the rubber finally hits the road, when you turn it all into cash, and some of that will occur as it flips into OREO.
William R. Hahl:		We actually had some of that happen this quarter, right, Russ, that...

H. Russell Holland III: Yeah, there was movement from the NPAs to the ORE in the commercial portfolio.


William R. Hahl:		Yeah, right.
Christopher Marinac:		Great. That’s helpful. And I guess just a follow-up. The LTVs on the commercial real estate that you put in the press release, is there any anecdotal evidence of properties that you have reappraised—just to compare how that acts if you have something with a fresh appraisal today?
Dennis S. Hudson III:		Yeah, we definitely would see property values declining, and it really is all over the board, but it is going to be in the low double digits to 20 percent or something like that probably. It depends on the property, and it’s a function of cash flow on the property. The good news about the CRE portfolio is we have some cash flow to work with, even with higher levels of vacancies and those sort of things. If needed, we will pursue trouble debt restructures with those guys. We have not done a lot of it yet. We have done some in the construction portfolio, but again, the key point is: we just don’t see the aggregate portfolio loss severity in that portfolio that we have observed in the construction portfolio; and it’s a function of the different types of assets. The CRE portfolio, as we stated, is a very diverse with each component performing a little differently based on what’s going on in the economy. Again, up at the top on that construction portfolio, the residential construction portfolio was very concentrated in this nasty asset called a home, or worse, vacant land or a lot associated with the building of a home. We have had horrific loss exposure there, but we think that’s getting behind us. And we think, given that the entire portfolio is now in liquidation mode, the severity of loss going forward will begin to moderate significantly; just the balance being as low as it is is going to cause that to occur, but you add another quarter or two and we are pretty well through that.
		Russ, didn’t mean to cut you off. Any comments on value?

H. Russell Holland III: No, I think that it is a factor of the area where the rents are and what vacancy rates are.

Dennis S. Hudson III: Right.

H. Russell Holland III: But the leverage is also something that’s helping us in that portfolio.

Dennis S. Hudson III: Right, the lack of leverage.

H. Russell Holland III: Right.


Dennis S. Hudson III:		Right. Other thoughts, Chris?
Christopher Marinac:		Sounds good. Thank you very much, guys. Appreciate it.
Dennis S. Hudson III:		Thank you.
Operator:		We have a follow-up question from Dave Bishop from Stifel Nicolaus. Please go ahead.
David Bishop:		Hey, a couple follow-up questions, and I want to make sure I heard Bill right. Bill, you said the S-1 has not been declared effective, right?
William R. Hahl:		Correct.
David Bishop:		Okay. I don’t know if you can provide any color—it sounds like not—but in terms of any sort of instrument you are targeting? Are we thinking more potentially, common, preferred? I don’t know if there is any sort of guidance you can give there in terms of amount we’re looking, anything you can comment there in terms of...
Dennis S. Hudson III:		I really wish we could. We’d like to be able to talk about it because we think it’s exciting, but we can’t.
David Bishop:		Gotcha.
Dennis S. Hudson III:		Hopefully we will get with you soon and talk about that.
David Bishop:		Sure. Then finally just a procedural question: In terms of the TARP dividend, we saw the elimination of the cash dividends; is that something that has to still be accrued and accounted for in the P&L on a going forward basis?
William R. Hahl:		Yeah.
David Bishop:		Okay, so that’s a good run rate. Okay, gotcha. Great. Thanks, guys.
Dennis S. Hudson III:		Thanks.
Operator:		And once again, if you have a question, please press star then one on your touchtone phone. And at this time, I show no questions.
Dennis S. Hudson III:		Thank you very much. We appreciate your attendance and look forward to talking with you all soon.
Operator:		Thank you, ladies and gentlemen. This concludes today’s conference. Thank you for participating. You may all disconnect.

EXHIBIT 99.3
To Form 8-K dated July 27, 2009

Seacoast Banking Corporation of Florida

Second Quarter 2009

Cautionary Notice Regarding Forward-Looking Statements

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

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, 2008 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 Seacoast, or from the Securities and Exchange Commission, including through the SEC’s Internet website at http://www.sec.gov.

Highlights

• Margin improvement of 21 basis points to 3.65%.

• Solid capital position; S-1 filed for future capital needs.

• GAAP EPS loss of $0.74 for quarter reflects stressed economic and credit environment.

• Liquidity remains strong with low cost core funding from deposits and sweep repos.

• Cost of deposits declined 39 basis points to 1.40%; total interest bearing liabilities down 40 basis points to 1.65%.

• The impact of asset quality deterioration on revenue was offset with better deposit mix and growth in low cost deposits.

• Focus remains on core deposit growth, risk mitigation and expense management.

• Expenses well managed; core operating expenses are declining; however credit related expenses continue to impact results.

Funding & Liquidity
Stable Funding Profile and Very Strong Liquidity Position


Funding •		Deposits and sweep repo base - - Customer deposits and sweep repos of $1.809 billion ⁽¹⁾ — Customer deposits and sweep repos compose 92% of total funding ⁽²⁾ — Can issue up to $40 million of FDIC – guaranteed bank notes
Liquidity
•		Daily overnight borrowing position maintained at zero since year-end

• Combined available contingent liquidity from the Federal Reserve, FHLB, and free securities approximately $700 million

(1) Excludes brokered deposits; but includes Certificate of Deposit Account Registry Service (CDARS) deposits

(2) Total funding includes customer deposits, broker deposits, sweep repos, borrowed funds and subordinated debt.

Capital Ratios
Completed Sale of $50 million in Preferred Securities to U.S. Treasury


	2Q-2009			1Q-2009			4Q-2008			3Q-2008
	Estimate			Actual			Actual			Actual
Tier 1 Capital Ratio		11.83	%		12.72	%		12.75	%		9.90	%
Total Capital Ratio		13.41	%		14.00	%		14.01	%		11.69	%
Total Average Equity to Total Average Assets	9.40%			9.45%			8.68%			8.43%
Tangible Equity to Tangible Assets		6.75	%		7.05	%		7.12	%		5.94	%
Tangible Common Equity to Tangible Assets	4.66%			5.09%			5.18%			5.94%
Tangible Common Equity to Risk Weighted Assets	6.29%			7.08%			7.08%			7.47%

Received $50 million in proceeds and Tier 1 capital from sale of preferred securities to U.S. Treasury on December 22, 2008.

Noninterest Expense
Controllable Expenses Well Managed


	($ in thousands)							2Q 2009			1Q 2009
	2Q–2009		1Q–2009			4Q–2008		vs 1Q 2009			vs 4Q 2008
Noninterest Expenses	$	20,348	$	19,109		$	20,390		6.48	%		-6.28	%
Nonrecurring:
Severance		152		242			—
Special Assessment FDIC		996		—			—
Consulting fees		85		—			445
Reversal of Incentive		—		(281	)		—
Legal settlement		150		39			118
Branch closures		32		107			206
Other		—		57			—
Professional Fees		—		—			130

Total nonrecurring expenses	$	1,415	$	164		$	899
Adjusted Noninterest Expense	$	18,933	$	18,945		$	19,491		-0.06	%		-2.80	%
Credit Costs ⁽¹⁾		1,449		967			1,030

Controllable Expenses	$	17,484	$	17,987		$	18,461		-2.75	%		-2.62	%

(1) Includes credit, collections and other real estate expenses

Net Interest Margin
Margin Expanded in 2Q Driven by Deposit Mix and Pricing


(Dollars in thousands)	Q2-08			Q3-08			Q4-08			Q1-09			Q2-09
Net Interest Margin		3.69	%		3.57	%		3.32	%		3.44	%		3.65	%

• 2Q margin expansion driven primarily by improved deposit pricing and funding mix, with increased core deposits and decreased broker deposits.

• Focus on deposit and loan pricing benefited margin and offset continuing compression associated with rising NPA’s and sluggish loan demand.

• Based on current assumptions, margin expected to be relatively stable for the remainder of the year with some additional expansion possible.

Existing Home Sales in Florida
Existing Home Sales Median Price
1994-2009


Year	State		Natural Growth
1994	$	87,800	$	87,800
1995	$	87,900	$	90,434
1996	$	91,800	$	93,147
1997	$	95,800	$	95,941
1998	$	101,500	$	98,820
1999	$	106,900	$	101,784
2000	$	115,900	$	104,838
2001	$	127,700	$	107,983
2002	$	137,800	$	111,222
2003	$	158,400	$	114,559
2004	$	182,400	$	117,996
2005	$	235,100	$	121,536
2006	$	248,300	$	125,182
2007	$	233,600	$	128,937
2008	$	187,800	$	132,805
Jan-09	$	139,500	$	136,790
Feb-09	$	141,900	$	140,893
Mar-09	$	141,300	$	145,120
Apr-09	$	138,500	$	149,474
May-09	$	144,400	$	153,958
Jun-09	$	148,000	$	158,764

Source: Florida Association of Realtors

Existing Home Sales in Treasure Coast
Existing Home Sales Median Price
1994-2009


Year	Treasure Coast		Natural Growth
1994	$	80,200	$	80,200
1995	$	78,100	$	82,606
1996	$	76,900	$	85,084
1997	$	84,900	$	87,637
1998	$	89,000	$	90,266
1999	$	89,100	$	92,974
2000	$	93,100	$	95,763
2001	$	108,200	$	98,636
2002	$	128,300	$	101,595
2003	$	153,900	$	104,643
2004	$	193,900	$	107,782
2005	$	254,000	$	111,016
2006	$	253,200	$	114,346
2007	$	226,100	$	117,776
2008	$	153,600	$	121,310
Jan-09	$	114,900	$	124,949
Feb-09	$	122,100	$	128,697
Mar-09	$	118,000	$	132,558
Apr-09	$	116,400	$	136,535
May-09	$	110,000	$	140,631
Jun-09	$	109,900	$	144,849

Source: Florida Association of Realtors

Existing Home Sales in Palm Beach
Existing Home Sales Median Price
1994-2009


Year	Palm Beach		Natural Growth
1994	$117,600		$117,600
1995	$	122,700	$	123,480
1996	$	126,900	$	129,654
1997	$	132,700	$	136,137
1998	$	128,100	$	142,944
1999	$	133,800	$	150,091
2000	$	138,600	$	157,595
2001	$	149,600	$	165,475
2002	$	194,600	$	173,749
2003	$	241,300	$	182,436
2004	$	300,900	$	191,558
2005	$	390,100	$	201,136
2006	$	384,700	$	211,193
2007	$	369,400	$	221,752
2008	$	302,800	$	232,840
Jan-09	$	232,100	$	244,482
Feb-09	$	228,100	$	256,706
Mar-09	$	228,100	$	269,541
Apr-09	$	232,400	$	280,323
May-09	$	232,900	$	291,536
Jun-09	$	250,300	$	303,197

Source: Florida Association of Realtors

Existing Home Sales in Orlando
Existing Home Sales Median Price
1994-2009


Year	Orlando		Natural Growth
1994	$	87,700	$	87,700
1995	$	86,300	$	92,085
1996	$	90,300	$	96,689
1997	$	94,100	$	101,524
1998	$	96,700	$	106,600
1999	$	103,300	$	111,930
2000	$	109,300	$	117,526
2001	$	120,300	$	123,403
2002	$	129,800	$	129,573
2003	$	144,200	$	136,051
2004	$	164,500	$	142,854
2005	$	231,400	$	149,997
2006	$	262,900	$	157,497
2007	$	248,900	$	165,371
2008	$	201,500	$	173,640
Jan-09	$	150,500	$	182,322
Feb-09	$	153,200	$	191,438
Mar-09	$	151,500	$	201,010
Apr-09	$	141,800	$	209,050
May-09	$	142,400	$	217,412
Jun-09	$	149,000	$	226,108

Source: Florida Association of Realtors

Service Area

• Seminole County

• Orange County

• Brevard County

• Indian River County

• Okeechobee County

• St. Lucie County

• Martin County

• Palm Beach County

• Broward County

• Hardee County

• Highlands County

• Desoto County

• Glades County

• Hendry County


Florida	001-13660	59-2260678
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)

815 Colorado Avenue, Stuart, Florida		34994
_________________________________ (Address of principal executive offices)		___________ (Zip Code)


	Seacoast Banking Corporation of Florida

July 30, 2009	By:	/s/ William R. Hahl

		Name: William R. Hahl
		Title: Executive Vice President and Chief Financial Officer


Exhibit No.		Description

99.1		Press Release dated July 27, 2009
99.2		Transcript of Seacoast’s investor conference call held on July 28, 2009
99.3		Data on website containing information used in the conference call held on July 28, 2009


Date of Report (Date of Earliest Event Reported):		July 27, 2009


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