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

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

– First operating profit since first quarter 2008 and sixth consecutive quarter of improved credit quality

– Household growth and seasonal improvements drive deposit growth to 12.1% annualized during the quarter

STUART, FL., April 25, 2011 – Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCF), a bank holding company whose principal subsidiary is Seacoast National Bank, today reported first quarter 2011 net income of $358,000, compared with a net loss of $10.2 million in the fourth quarter of 2010 and a net loss of $1.6 million a year earlier. Including preferred stock dividends and accretion of preferred stock discount of $937,000, the net loss applicable to common shareholders was $579,000 or $0.01 per average common diluted share for the first quarter, compared to a net loss of $11.1 million or $0.12 per average common diluted share in the fourth quarter and a net loss of $2.5 million or $0.04 per average common diluted share for the first quarter of 2010.

“The strategic framework we put in place over two years ago has enabled us to manage the effects of the real estate crisis effectively and on schedule,” said Dennis S. Hudson, III, Chairman and Chief Executive Officer. “We are now poised to accelerate our business plan to increase profitability and ultimately position Seacoast as a top-tier community bank, measured by low risk, strong organic growth and increased shareholder value.”

Revenue generation improvements accelerated during the quarter as a result of growth in core business and a stronger balance sheet as favorable new customer trends continued to bring increased deposit balances, lower deposit costs, improved margins and increased fees. A total of 2,146 new core households were added in the first quarter of 2011, up 28.0 percent over the prior year. Average noninterest bearing demand deposit balances for the first quarter increased 14.8 percent compared to the prior year. Noninterest bearing demand deposits now total 19.3 percent of total deposits compared to 15.8 percent one year earlier.

“Our performance improved significantly in the first quarter of 2011 due to the completion last year of our focused strategy to eliminate exposure to residential and commercial construction and land development loans,” said Hudson. These loans included our largest and most troubled borrowers and represented our highest loss content following the unprecedented real estate valuation declines in Florida. True to our prediction that nonaccrual loans had peaked in September 2009, we have seen six consecutive quarters of improvement since then. We now expect more rapid improvement in the next two quarters as several larger problem loan relationships, which together comprise approximately 50 percent of nonaccrual loans outstanding at March 31, 2011, are expected to be liquidated as a result of contracts executed late in the first quarter.”

•

Core deposits (excluding certificates of deposits > $100,000 and brokered time certificates) increased 13.9 percent annualized, and noninterest bearing demand deposits increased 49.4 percent annualized compared to the fourth quarter 2010;

•

Average business and personal noninterest bearing checking deposit balances increased $7.8 million or 20.5 percent and $11.8 million or 43.1 percent annualized, respectively, compared to the fourth quarter 2010;

•

Debit card income for the quarter totaled $891,000, up $77,000 or 9.5 percent linked quarter, and up $174,000 or 24.3 percent compared to first quarter 2010 as a result of the increased households added over the last twelve months, as well as, seasonal impacts;

•

A reduced provision for loan losses was required in the first quarter of $640,000, a decline of $1.4 million from a year ago and $3.3 million lower than the fourth quarter 2010;

•

Nonperforming assets (NPAs), compared to the fourth quarter 2010, declined by approximately $3.6 million to 4.34 percent of total assets, and declined $25.1 million or 21.7 percent over the last twelve months;

•

Net interest margin increased to 3.48 percent, 6 basis points higher than last quarter and unchanged from the first quarter 2010;

•

Net interest income (taxable equivalent) totaled $16.5 million, compared to $16.4 million the prior quarter; the lower deposit costs, a slightly larger investment portfolio and a slower loan runoff were the primary reasons for net interest income stabilization;

•

The cost of interest bearing liabilities totaled 0.98 percent, 3 basis points lower than the fourth quarter 2010 and 27 basis points lower than first quarter 2010;

•

Tangible common equity ratio increased to 5.6 percent from 4.8 percent as of March 31, 2010; and

•

Total risk based capital increased to 18.2 percent, up from 15.3 percent as of March 31, 2010.

During the last twelve months, overall asset quality improved notably. Early stage delinquencies, nonperforming loans, and net charge-offs improved, and in some cases, significantly. In addition, the aforementioned reduction in nonaccrual loans expected in the second and third quarter is not expected to result in further charge-offs. Nonetheless, the economic outlook while improved remains uncertain, resulting in an elevated and stable allowance for credit losses. As of March 31, 2011, the allowance for loan losses was $34 million, a decline of $4 million from year-end, and it represented 2.80% of total loans compared to 3.04% and 3.18% of total loans as December 31, 2010 and March 31, 2010, respectively.

The tax benefit for the net operating loss carry forward for the first quarter totaled $172,000. The deferred tax valuation allowance was lowered by a like amount, and therefore there was no change in the carrying value of deferred tax assets which are supported by tax planning strategies. Due to limitations on the inclusion of deferred tax assets, regulatory capital ratios are unaffected. As our earnings continue to improve and credit losses moderate, we believe we can place increased reliance on our forecast of future taxable earnings, which would support realization of the deferred tax assets and increase the Company’s common shareholders’ equity by up to $48 million.

Solid growth in new households have increased noninterest income over the past year with service charges on deposit accounts up 5.1 percent and debit card income up 24.3 percent. Trust and brokerage commissions and fees also increased 9.9 percent and 11.9 percent, respectively, over the past year as financial markets have improved and our sales activities have improved. Service charges on deposit accounts fell slightly in the first quarter on a linked quarter basis primarily due to fewer days in the first quarter compared to the fourth quarter and increased average deposit balances. Revenue increased for debit card and other EFT transactions, attributable to increases in the number of customers served and a seasonal increase in transactions.


(dollars in thousands)		Q-1 2011		Q-4 2010		Q-3 2010		Q-2 2010		Q-1 2010

Noninterest Income:
Service charges on deposit accounts	$	1,442	$	1,590	$	1,511	$	1,452	$	1,372
Trust income		523		510		500		491		476
Mortgage banking fees		395		580		654		464		421
Brokerage commissions and fees		320		325		306		257		286
Marine finance fees		298		355		330		310		339
Debit card income		891		814		810		822		717
Other deposit based EFT fees		90		75		71		82		93
Other		250		338		350		374		459

Total		4,209		4,587		4,532		4,252		4,163
Gain on sale of merchant business		0		600		0		0		0

Total	$	4,209	$	5,187	$	4,532	$	4,252	$	4,163

Wealth management fees were up $8,000 linked quarter or 3.9 percent annualized and were up $81,000 or 10.6 percent compared to first quarter a year ago. Marine finance fees were lower by $57,000 compared to the fourth quarter and lower by $41,000 compared to a year ago, as $5 million of production was retained in the loan portfolio. Mortgage banking revenues declined by $185,000 this quarter compared to the fourth quarter 2010 as a result of a surge in home purchase closings before year-end and a seasonal slowing of home purchase transactions in early 2011.

Core operating expenses remained stable for the quarter and were improved over the prior year. Expenses associated with other real estate owned and asset dispositions were substantially reduced for the quarter compared with both the prior and year earlier period.


(dollars in thousands)		Q-1 2011		Q-4 2010		Q-3 2010		Q-2 2010		Q-1 2010

Noninterest Expense:
Salaries and wages	$	6,551	$	6,539	$	6,631	$	6,776	$	6,462
Employee benefits		1,600		1,153		1,367		1,419		1,778
Outsourced data processing costs		1,522		1,496		1,503		1,503		1,479
Telephone / data lines		289		321		383		402		399
Occupancy expense		1,946		1,699		1,928		1,911		1,942
Furniture and equipment expense		593		609		595		585		609
Marketing expense		752		764		577		913		656
Legal and professional fees		1,757		1,783		2,491		1,602		2,101
FDIC assessments		959		947		966		1,039		1,006
Amortization of intangibles		212		212		212		246		315
Other		1,951		2,330		1,886		2,060		2,152

Total Core Operating Expense		18,132		17,853		18,539		18,456		18,899
Net loss on OREO and repossessed assets		449		8,763		849		105		3,824
Asset dispositions expense		1,086		1,122		587		310		249

Total	$	19,667	$	27,738	$	19,975	$	18,871	$	22,972

Salaries, wages and benefits for the first quarter 2011 were nearly unchanged at $6.5 million from a year ago and when compared to the fourth quarter 2010. Employee benefit costs, which typically are higher in the first and second quarters each year as a result of higher payroll taxes and unemployment insurance costs, increased when compared to the fourth quarter, but were down year over year by $178,000 or 10.0 percent. Costs associated with foreclosed and repossessed asset disposition and management activities declined by $8.4 million compared to the fourth quarter 2010 and $2.5 million compared to a year earlier. Also decreasing this quarter compared to a year earlier were legal and professional fees, down $344,000 related to reduced risk management and strategic planning consulting assistance.

The Company’s retail core deposit focus has produced strong growth in core deposit customer relationships and has resulted in increased balances, which allowed for run-off in brokered and single service certificates of deposit. The improved deposit mix and lower rates paid on deposits during the first quarter reduced the overall cost of total deposits to 0.72 percent, 4 basis points lower than in the fourth quarter 2010 and 31 basis points below last year’s first quarter.

Total deposits, excluding brokered certificates of deposits totaled $1.7 billion at March 31, 2011, up $49 million or 12.1 percent annualized compared to year-end 2010 total deposits. The average cost of interest bearing deposits, excluding certificates of deposits, during the first quarter was 0.30 percent, unchanged from the fourth quarter and 29 basis points lower from first quarter 2010. Certificate of deposit rates paid were lower compared to the fourth quarter and totaled 1.78 percent during the first quarter of 2011, a decline of 10 basis points compared to the fourth quarter and 28 basis points lower compared to first quarter 2010.

The mix in deposits has improved with time certificates declining to 32 percent of total deposits, compared to 35 percent a year ago. The decline in deposits resulted from management’s decision not to retain higher rate single-service certificates of deposit clients. These balances declined by $82 million, year over year, and were replaced with lower cost new core deposit accounts. As previously reported, the Company has experienced strong growth in core deposit customer relationships since implementing its new deposit growth strategy. Net core household growth increased by 3.3 percent over the last twelve months with new personal checking relationships up 37.3 percent and new commercial business checking relationships increasing 61.6 percent during the first quarter 2011 compared to the same quarter a year earlier. These new relationships have improved market share and increased average services per household.

Seacoast will host a conference call on Monday, April 25, 2011 at 10:00 a.m. (Eastern Time) to discuss the earnings results and business trends. Investors may call in (toll-free) by dialing (888) 517-2464 (access code: 5785075; leader: Dennis S. Hudson). Charts will be used during the conference call and may be accessed at Seacoast’s website at by selecting “Presentations” under the heading “Investor Services”. A replay of the call will be available for one month, beginning the afternoon of April 25, 2011, by dialing (888) 843-7419 (domestic), using the passcode 5785075.

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 April 25, 2011, 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 $2.1 billion in assets. It is one of the largest independent commercial banking organizations in Florida, and is headquartered on Florida’s Treasure Coast, one of the wealthiest and fastest growing areas in the nation.

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

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

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

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2010 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.


	Three Months Ended
(Dollars in thousands,	March 31,
except share data)	2011					2010
Summary of Earnings
Net income (loss)	$	358		$			(1,564	)
Net loss available to common shareholders		(579	)				(2,501	)
Net interest income (1)		16,518					17,288
Performance Ratios
Return on average assets-GAAP basis (2),(3)		0.07			%		(0.30	)%
Return on average tangible assets (2),(3),(4)		0.10					(0.26	)
Return on average shareholders’ equity–GAAP basis (2), (3)		0.88					(4.18	)
Net interest margin (1),(2)		3.48					3.48
Per Share Data
Net loss diluted-GAAP basis	$	(0.01	)	$			(0.04	)
Net loss basic-GAAP basis		(0.01	)				(0.04	)
Cash dividends declared		0.00					0.00


	March 31,						Increase/
(Dollars in thousands, except per share data)	2011			2010			(Decrease)
Credit Analysis
Net charge-offs year-to-date	$	4,031		$	3,541			13.8		%
Net charge-offs to average loans		1.32	%		1.03	%		28.2
Loan loss provision year-to-date	$	640		$	2,068			(69.1	)
Allowance to loans at end of period		2.80	%		3.18			(11.9	)
Nonperforming loans	$	66,233		$	96,321			(31.2	)
Other real estate owned		24,111			19,076			26.4

Total nonperforming assets	$	90,344		$	115,397			(21.7	)

Restructured loans (accruing)	$	76,935		$	60,032			28.2
Nonperforming assets to loans and other real estate owned at end of period		7.23	%		8.29	%		(12.8	)
Nonperforming assets to total assets		4.34	%		5.44	%		(20.2	)
Selected Financial Data
Total assets	$	2,081,319		$	2,119,966			(1.8	)
Securities – available for sale (at fair value)		514,150			365,986			40.5
Securities – held for investment (at amortized cost)		25,835			10,228			152.6
Net loans		1,191,030			1,329,559			(10.4	)
Deposits		1,686,210			1,759,433			(4.2	)
Total shareholders’ equity		165,798			151,183			9.7
Common shareholders’ equity		119,238			105,872			12.6
Book value per share common		1.28			1.80			(28.9	)
Tangible book value per share		1.74			2.50			(30.4	)
Tangible common book value per share (5)		1.24			1.73			(28.3	)
Average shareholders’ equity to average assets		8.14	%		7.13	%		14.2
Tangible common equity to tangible assets (5), (6)		5.60			4.82			16.2
Average Balances (Year-to-Date)
Total assets	$	2,030,045		$	2,127,074			(4.6	)
Less: intangible assets		3,027			3,969			(23.7	)

Total average tangible assets	$	2,027,018		$	2,123,105			(4.5	)

Total equity	$	165,148		$	151,731			8.8
Less: intangible assets		3,027			3,969			(23.7	)

Total average tangible equity	$	162,121		$	147,762			9.7

(2)

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

(3)

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


	Three Months Ended
	March 31,
(Dollars in thousands, except per share data)	2011			2010
Interest on securities:
Taxable	$	3,676		$	3,727
Nontaxable		47			69
Interest and fees on loans		16,213			18,377
Interest on federal funds sold and other investments		233			239

Total Interest Income		20,169			22,412
Interest on deposits		592			1,241
Interest on time certificates		2,348			3,226
Interest on borrowed money		773			732

Total Interest Expense		3,713			5,199

Net Interest Income		16,456			17,213
Provision for loan losses		640			2,068

Net Interest Income After Provision for Loan Losses		15,816			15,145
Noninterest income:
Service charges on deposit accounts		1,442			1,372
Trust income		523			476
Mortgage banking fees		395			421
Brokerage commissions and fees		320			286
Marine finance fees		298			339
Debit card income		891			717
Other deposit based EFT fees		90			93
Other		250			459

		4,209			4,163
Securities gains, net		0			2,100

Total Noninterest Income		4,209			6,263
Noninterest expenses:
Salaries and wages		6,551			6,462
Employee benefits		1,600			1,778
Outsourced data processing costs		1,522			1,479
Telephone / data lines		289			399
Occupancy		1,946			1,942
Furniture and equipment		593			609
Marketing		752			656
Legal and professional fees		1,757			2,101
FDIC assessments		959			1,006
Amortization of intangibles		212			315
Asset dispositions expense		1,086			249
Net loss on other real estate owned and
repossessed assets		449			3,824
Other		1,951			2,152

Total Noninterest Expenses		19,667			22,972
Income (Loss) Before Income Taxes		358			(1,564	)
Provision for income taxes		0			0

Net Income (Loss)		358			(1,564	)
Preferred stock dividends and accretion on preferred stock discount		937			937

Net Loss Available to Common
Shareholders	$	(579	)	$	(2,501	)
Per share of common stock:
Net loss diluted	$	(0.01	)	$	(0.04	)
Net loss basic		(0.01	)		(0.04	)
Cash dividends declared		0.00			0.00
Average diluted shares outstanding		93,458,692			58,845,822
Average basic shares outstanding		93,458,692			58,845,822


	March 31,			December 31,			March 31,
(Dollars in thousands, except share data)	2011			2010			2010
Assets
Cash and due from banks	$	29,578		$	35,358		$	58,153
Interest bearing deposits with other banks		197,960			176,047			216,550

Total Cash and Cash Equivalents		227,538			211,405			274,703
Securities:
Available for sale (at fair value)		514,150			435,140			365,986
Held for investment (at amortized cost)		25,835			26,861			10,228

Total Securities		539,985			462,001			376,214
Loans available for sale		3,095			12,519			3,609
Loans, net of deferred costs		1,225,383			1,240,608			1,373,278
Less: Allowance for loan losses		(34,353	)		(37,744	)		(43,719	)

Net Loans		1,191,030			1,202,864			1,329,559
Bank premises and equipment, net		35,568			36,045			38,409
Other real estate owned		24,111			25,697			19,076
Other intangible assets		2,925			3,137			3,806
Other assets		57,067			62,713			74,590

	$	2,081,319		$	2,016,381		$	2,119,966

Liabilities and Shareholders’ Equity
Liabilities
Deposits
Demand deposits (noninterest bearing)	$	324,879		$	289,621		$	278,205
Savings deposits		828,130			812,625			865,909
Other time deposits		278,437			281,681			304,807
Brokered time deposits		7,371			7,093			24,640
Time certificates of $100,000 or more		247,393			246,208			285,872

Total Deposits		1,686,210			1,637,228			1,759,433
Federal funds purchased and securities sold under agreements to repurchase, maturing within 30 days		115,185			98,213			95,708
Borrowed funds		50,000			50,000			50,000
Subordinated debt		53,610			53,610			53,610
Other liabilities		10,516			11,031			10,032

		1,915,521			1,850,082			1,968,783
Shareholders’ Equity
Preferred stock – Series A		46,560			46,248			45,311
Common stock		9,351			9,349			5,891
Additional paid in capital		221,688			221,522			177,842
Accumulated deficit		(112,650	)		(112,652	)		(80,076	)
Treasury stock		(1	)		(1	)		(437	)

		164,948			164,466			148,531
Accumulated other comprehensive gain, net		850			1,833			2,652

Total Shareholders’ Equity		165,798			166,299			151,183

	$	2,081,319		$	2,016,381		$	2,119,966

Common Shares Outstanding		93,514,212			93,487,581			58,913,722

Note: The balance sheet at December 31, 2010 has been derived from the audited financial statements at that date.


CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	QUARTERS
	2011				2010														Last 12
(Dollars in thousands, except per share data)	First					Fourth				Third				Second					Months

Net loss	$	358				$	(10,205	)		$	(7,638	)			$	(13,796	)		$	(31,281	)
Operating Ratios
Return on average assets-GAAP basis (2),(3)		0.07		%			(2.01	)	%		(1.47	)	%			(2.61	)	%		(1.52	)	%
Return on average tangible assets (2),(3),(4)		0.10					(1.99	)			(1.44	)				(2.58	)			(1.50	)
Return on average shareholders’ equity -GAAP basis (2),(3)		0.88					(23.31	)			(16.63	)				(30.73	)			(17.84	)
Net interest margin (1),(2)		3.48					3.42				3.35					3.27				3.37
Average equity to average assets		8.14					8.63				8.83					8.49				8.53
Credit Analysis
Net charge-offs	$	4,031				$	4,678			$	10,700				$	20,209			$	39,618
Net charge-offs to average loans		1.32		%			1.47		%		3.29		%			5.95		%		3.08		%
Loan loss provision	$	640				$	3,975			$	8,866				$	16,771			$	30,252
Allowance to loans at end of period		2.80		%			3.04		%		3.04		%			3.10		%
Restructured loans (accruing)	$	76,935				$	66,350			$	64,403				$	64,876
Nonperforming loans	$	66,233				$	68,284			$	69,519				$	90,885
Other real estate owned		24,111					25,697				32,406					19,018

Nonperforming assets	$	90,344				$	93,981			$	101,925				$	109,903

Nonperforming assets to loans and other real estate owned at end of period		7.23		%			7.42		%		7.87		%			8.33		%
Nonperforming assets to total assets		4.34					4.66				5.06					5.25
Nonaccrual loans and accruing loans 90 days or more past due to loans outstanding at end of period		5.41					5.50				5.50					6.99
Per Share Common Stock
Net loss diluted-GAAP basis	$	(0.01	)			$	(0.12	)		$	(0.09	)			$	(0.25	)		$	(0.41	)
Net loss basic-GAAP basis		(0.01	)				(0.12	)			(0.09	)				(0.25	)			(0.41	)
Cash dividends declared		0.00					0.00				0.00					0.00				0.00
Book value per share common		1.28					1.28				1.43					1.51
Average Balances
Total assets	$	2,030,045				$	2,013,405			$	2,062,857				$	2,120,388
Less: Intangible assets		3,027					3,239				3,452					3,669

Total average tangible assets	$	2,027,018				$	2,010,166			$	2,059,405				$	2,116,719

Total equity	$	165,148				$	173,707			$	182,202				$	180,093
Less: Intangible assets		3,027					3,239				3,452					3,669

Total average tangible equity	$	162,121				$	170,468			$	178,750				$	176,424

(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)


	March 31,		December 31,		March 31,
SECURITIES	2011		2010		2010
U.S. Treasury and U.S. Government Agencies	$	4,208	$	4,212	$	4,192
Mortgage-backed		505,784		426,477		356,693
Obligations of states and political subdivisions		1,412		1,709		2,066
Other securities		2,746		2,742		3,035

Securities Available for Sale		514,150		435,140		365,986

Mortgage-backed		17,122		18,963		5,996
Obligations of states and political subdivisions		7,713		7,398		4,232
Other securities		1,000		500		0

Securities Held for Investment		25,835		26,861		10,228

Total Securities	$	539,985	$	462,001	$	376,214

LOANS
Construction and land development	$	75,718	$	79,306	$	151,257
Real estate mortgage		1,047,473		1,060,597		1,098,274
Installment loans to individuals		50,364		51,602		61,422
Commercial and financial		51,520		48,825		62,134
Other loans		308		278		191

Total Loans	$	1,225,383	$	1,240,608	$	1,373,278


	2011							2010
	First Quarter							Fourth Quarter						First Quarter

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

Assets
Earning assets:
Securities:
Taxable	$	468,489			3.14	%		$	446,081			3.12	%	$	410,694			3.63	%
Nontaxable		3,921			7.45				4,293			5.59			6,256			6.71

Total Securities		472,410			3.17				450,374			3.15			416,950			3.73
Federal funds sold and other
investments		216,906			0.44				187,023			0.46			205,575			0.47
Loans, net		1,236,274			5.33				1,263,237			5.19			1,393,808			5.36

Total Earning Assets		1,925,590			4.26				1,900,634			4.24			2,016,333			4.52
Allowance for loan losses		(37,254	)						(39,443	)					(44,377	)
Cash and due from banks		30,122							33,024						30,975
Premises and equipment		35,936							36,460						39,773
Other assets		75,651							82,730						84,370

	$	2,030,045						$	2,013,405					$	2,127,074

Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
NOW	$	47,758			0.25	%		$	49,548			0.24	%	$	53,408			0.41	%
Savings deposits		116,896			0.11				110,382			0.11			102,777			0.24
Money market accounts		645,241			0.33				662,315			0.33			693,205			0.66
Time deposits		534,401			1.78				537,772			1.88			635,535			2.06
Federal funds purchased and other short term borrowings		93,279			0.28				83,183			0.27			103,676			0.25
Other borrowings		103,610			2.77				103,610			2.72			103,610			2.61

Total Interest-Bearing Liabilities		1,541,185			0.98				1,546,810			1.01			1,692,211			1.25
Demand deposits (noninterest-bearing)		312,310							280,412						272,122
Other liabilities		11,402							12,476						11,010

Total Liabilities		1,864,897							1,839,698						1,975,343
Shareholders’ equity		165,148							173,707						151,731

	$	2,030,045					$		2,013,405					$	2,127,074

Interest expense as a % of earning assets					0.78	%						0.82	%					1.05	%
Net interest income as a % of earning assets					3.48							3.42						3.48

(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.


		2009
(Dollars in millions)		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr

Construction and Land Development
Residential:
Condominiums	>$4 million	$	8.4	$	7.9	$	5.3	$	—
	<$4 million		7.9		8.8		3.7		6.1
Town homes	>$4 million		—		—		—		—
	<$4 million		4.2		2.3		—		—
Single Family Residences	>$4 million		6.6		6.5		—		—
	<$4 million		13.9		10.3		7.1		4.1
Single Family Land & Lots	>$4 million		21.8		21.8		5.9		5.9
	<$4 million		29.6		21.5		19.5		16.6
Multifamily	>$4 million		7.8		7.8		6.6		6.6
	<$4 million		17.0		9.8		9.5		8.3

TOTAL	>$4 million		44.6		44.0		17.8		12.5
TOTAL	<$4 million		72.6		52.7		39.8		35.1

GRAND TOTAL		$	117.2	$	96.7	$	57.6	$	47.6


		2010
( (Dollars in millions)		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr

Construction and Land Development
Residential:
Condominiums	>$4 million	$	—	$	—	$	—	$	—
	<$4 million		0.9		0.9		0.9		0.9
Townhomes	>$4 million		—		—		—		—
	<$4 million		—		—		—		—
Single Family Residences	>$4 million		—		—		—		—
	<$4 million		3.9		3.6		3.8		—
Single Family Land & Lots	>$4 million		5.9		5.9		—		—
	<$4 million		15.7		9.6		10.3		7.0
Multifamily	>$4 million		6.6		4.3		—		—
	<$4 million		8.1		8.2		6.3		6.1

TOTAL	>$4 million		12.5		10.2		—		—
TOTAL	<$4 million		28.6		22.3		21.3		14.0

GRAND TOTAL		$	41.1	$	32.5	$	21.3	$	14.0


		2011		Nonperforming
( (Dollars in millions)		1st Qtr		1st Qtr		Number

Construction and Land Development
Residential:
Condominiums	>$4 million	$	—	$	—		—
	<$4 million		0.5		0.5		1
Townhomes	>$4 million		—		—		—
	<$4 million		—		—		—
Single Family Residences	>$4 million		—		—		—
	<$4 million		—		—		—
Single Family Land & Lots	>$4 million		—		—		—
	<$4 million		6.6		0.1		2
Multifamily	>$4 million		—		—		—
	<$4 million		6.1		1.0		2

TOTAL	>$4 million		—		—		—
TOTAL	<$4 million		13.2		1.6		5

GRAND TOTAL		$	13.2	$	1.6		5


	2009
(Dollars in millions)	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr

Construction and land development
Residential
Condominiums	$	16.3	$	16.7	$	9.0	$	6.1
Townhomes		4.2		2.3		—		—
Single family residences		20.5		16.8		7.1		4.1
Single family land and lots		51.4		43.3		25.4		22.5
Multifamily		24.8		17.6		16.1		14.9

		117.2		96.7		57.6		47.6
Commercial
Office buildings		17.4		13.8		13.8		13.9
Retail trade		70.0		55.9		23.0		3.9
Land		60.9		51.2		50.8		45.6
Industrial		9.0		8.5		8.2		2.5
Healthcare		5.7		6.0		4.8		4.8
Churches and educational facilities		—		—		—		—
Lodging		0.6		—		—		—
Convenience stores		—		—		—		—
Marina		31.6		30.0		28.1		6.8
Other		6.2		1.4		—		—

		201.4		166.8		128.7		77.5
Individuals
Lot loans		34.0		32.4		30.7		29.3
Construction		16.2		11.8		11.1		8.5

		50.2		44.2		41.8		37.8

Total construction and land development		368.8		307.7		228.1		162.9
Real estate mortgages
Residential real estate
Adjustable		333.1		328.0		325.9		289.4
Fixed rate		90.8		90.6		89.5		88.6
Home equity mortgages		85.5		83.8		83.9		86.8
Home equity lines		60.3		60.1		59.7		60.1

		569.7		562.5		559.0		524.9
Commercial real estate
Office buildings		140.6		141.6		144.2		132.3
Retail trade		109.1		120.0		151.4		164.6
Land		—		—		—		—
Industrial		95.3		93.0		89.3		88.4
Healthcare		28.3		30.9		25.4		24.7
Churches and educational facilities		34.8		34.6		30.8		29.6
Recreation		1.7		1.4		3.3		3.0
Multifamily		27.2		31.7		35.1		29.7
Mobile home parks		3.0		5.6		5.6		5.4
Lodging		26.3		26.3		25.6		25.5
Restaurant		6.1		5.1		5.0		4.7
Agricultural		8.2		11.8		12.0		11.7
Convenience stores		23.3		23.2		22.8		22.1
Marina		18.1		18.0		5.9		15.8
Other		24.9		29.6		28.1		26.6

		546.9		572.8		584.5		584.1

Total real estate mortgages		1,116.6		1,135.3		1,143.5		1,109.0
Commercial & financial		75.5		71.8		66.0		61.1
Installment loans to individuals
Automobile and trucks		19.4		18.0		16.6		15.3
Marine loans		26.3		26.9		26.8		26.4
Other		25.7		24.3		23.3		22.3

		71.4		69.2		66.7		64.0
Other		0.3		0.3		0.3		0.5

	$	1,632.6	$	1,584.3	$	1,504.6	$	1,397.5


	2010								2011
(Dollars in millions)	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr

Construction and land development
Residential
Condominiums	$	0.9	$	0.9	$	0.9	$	0.9	$	0.5
Townhomes		—		—		—		—		—
Single family residences		3.9		3.6		3.8		—		—
Single family land and lots		21.6		15.5		10.3		7.0		6.6
Multifamily		14.7		12.5		6.3		6.1		6.1

		41.1		32.5		21.3		14.0		13.2
Commercial
Office buildings		13.7		—		—		—		—
Retail trade		3.9		—		—		—		—
Land		45.7		38.5		35.1		33.6		33.9
Industrial		2.5		0.3		0.3		—		—
Healthcare		—		—		—		—		—
Churches and educational facilities		—		—		—		—		—
Lodging		—		—		—		—		—
Convenience stores		—		—		—		0.2		0.5
Marina		6.8		—		—		—		—
Other		—		—		—		—		—

		72.6		38.8		35.4		33.8		34.4
Individuals
Lot loans		28.9		27.4		26.3		24.4		20.8
Construction		8.7		8.2		9.1		7.1		7.3

		37.6		35.6		35.4		31.5		28.1

Total construction and land development		151.3		106.9		92.1		79.3		75.7
Real estate mortgages
Residential real estate
Adjustable		290.5		295.9		300.9		303.3		308.6
Fixed rate		87.6		86.0		84.1		82.6		86.6
Home equity mortgages		89.1		79.0		74.4		73.4		67.7
Home equity lines		60.1		58.8		58.4		57.7		57.4

		527.3		519.7		517.8		517.0		520.3
Commercial real estate
Office buildings		131.1		128.2		122.9		122.0		121.3
Retail trade		163.5		155.9		152.0		151.5		150.6
Land		—		—		—		—		—
Industrial		81.7		84.0		79.8		78.0		76.3
Healthcare		29.1		29.4		29.0		30.0		26.6
Churches and educational facilities		29.1		28.5		29.4		28.8		28.6
Recreation		3.0		3.0		2.9		2.9		2.8
Multifamily		25.3		23.6		23.2		22.4		14.2
Mobile home parks		5.3		2.6		2.6		2.5		2.5
Lodging		23.5		23.4		22.1		21.9		21.7
Restaurant		4.7		4.6		4.5		4.5		4.2
Agricultural		11.4		10.8		10.7		10.6		9.2
Convenience stores		22.3		21.0		18.9		18.6		20.1
Marina		15.7		22.2		22.1		21.9		21.7
Other		25.3		25.6		26.8		28.0		27.4

		571.0		562.8		546.9		543.6		527.2

Total real estate mortgages		1,098.3		1,082.5		1,064.7		1,060.6		1,047.5
Commercial & financial		62.1		49.9		54.0		48.8		51.5
Installment loans to individuals
Automobile and trucks		14.4		12.9		11.6		10.9		10.1
Marine loans		25.3		27.3		19.7		19.8		19.4
Other		21.7		20.8		20.9		20.9		20.9

		61.4		61.0		52.2		51.6		50.4
Other		0.2		0.3		0.3		0.3		0.3

	$	1,373.3	$	1,300.6	$	1,263.3	$	1,240.6	$	1,225.4


	2009
(Dollars in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr

Construction and land development
Residential
Condominiums	$	(1.1	)	$	0.4		$	(7.7	)	$	(2.9	)
Townhomes		(1.9	)		(1.9	)		(2.3	)		—
Single family residences		(6.3	)		(3.7	)		(9.7	)		(3.0	)
Single family land and lots		(1.4	)		(8.1	)		(17.9	)		(2.9	)
Multifamily		(2.0	)		(7.2	)		(1.5	)		(1.2	)

		(12.7	)		(20.5	)		(39.1	)		(10.0	)
Commercial
Office buildings		0.1			(3.6	)		—			0.1
Retail trade		1.3			(14.1	)		(32.9	)		(19.1	)
Land		(12.4	)		(9.7	)		(0.4	)		(5.2	)
Industrial		(4.3	)		(0.5	)		(0.3	)		(5.7	)
Healthcare		5.7			0.3			(1.2	)		—
Churches and educational facilities		—			—			—			—
Lodging		0.6			(0.6	)		—			—
Convenience stores		—			—			—			—
Marina		0.9			(1.6	)		(1.9	)		(21.3	)
Other		0.2			(4.8	)		(1.4	)		—

		(7.9	)		(34.6	)		(38.1	)		(51.2	)
Individuals
Lot loans		(1.7	)		(1.6	)		(1.7	)		(1.4	)
Construction		(4.1	)		(4.4	)		(0.7	)		(2.6	)

		(5.8	)		(6.0	)		(2.4	)		(4.0	)

Total construction and land development		(26.4	)		(61.1	)		(79.6	)		(65.2	)
Real estate mortgages
Residential real estate
Adjustable		4.1			(5.1	)		(2.1	)		(36.5	)
Fixed rate		(4.7	)		(0.2	)		(1.1	)		(0.9	)
Home equity mortgages		0.7			(1.7	)		0.1			2.9
Home equity lines		1.8			(0.2	)		(0.4	)		0.4

		1.9			(7.2	)		(3.5	)		(34.1	)
Commercial real estate
Office buildings		(5.8	)		1.0			2.6			(11.9	)
Retail trade		(2.8	)		10.9			31.4			13.2
Land		—			—			—			—
Industrial		0.6			(2.3	)		(3.7	)		(0.9	)
Healthcare		(0.9	)		2.6			(5.5	)		(0.7	)
Churches and educational facilities		(0.4	)		(0.2	)		(3.8	)		(1.2	)
Recreation		—			(0.3	)		1.9			(0.3	)
Multifamily		—			4.5			3.4			(5.4	)
Mobile home parks		—			2.6			—			(0.2	)
Lodging		(0.3	)		—			(0.7	)		(0.1	)
Restaurant		(0.1	)		(1.0	)		(0.1	)		(0.3	)
Agricultural		(0.3	)		3.6			0.2			(0.3	)
Convenience stores		(0.2	)		(0.1	)		(0.4	)		(0.7	)
Marina		(0.1	)		(0.1	)		(12.1	)		9.9
Other		(0.5	)		4.7			(1.5	)		(1.5	)

		(10.8	)		25.9			11.7			(0.4	)

Total real estate mortgages		(8.9	)		18.7			8.2			(34.5	)
Commercial & financial		(7.3	)		(3.7	)		(5.8	)		(4.9	)
Installment loans to individuals
Automobile and trucks		(1.4	)		(1.4	)		(1.4	)		(1.3	)
Marine loans		0.3			0.6			(0.1	)		(0.4	)
Other		(0.4	)		(1.4	)		(1.0	)		(1.0	)

		(1.5	)		(2.2	)		(2.5	)		(2.7	)
Other		—			—			—			0.2

	$	(44.1	)	$	(48.3	)	$	(79.7	)	$	(107.1	)


	2010												2011
(Dollars in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr

Construction and land development
Residential
Condominiums	$	(5.2	)	$	—		$	—		$	—		$	(0.4	)
Townhomes		—			—			—			—			—
Single family residences		(0.2	)		(0.3	)		0.2			(3.8	)		—
Single family land and lots		(0.9	)		(6.1	)		(5.2	)		(3.3	)		(0.4	)
Multifamily		(0.2	)		(2.2	)		(6.2	)		(0.2	)		—

		(6.5	)		(8.6	)		(11.2	)		(7.3	)		(0.8	)
Commercial
Office buildings		(0.2	)		(13.7	)		—			—			—
Retail trade		—			(3.9	)		—			—			—
Land		0.1			(7.2	)		(3.4	)		(1.5	)		0.3
Industrial		—			(2.2	)		—			(0.3	)		—
Healthcare		(4.8	)		—			—			—			—
Churches and educational facilities		—			—			—			—			—
Lodging		—			—			—			—			—
Convenience stores		—			—			—			0.2			0.3
Marina		—			(6.8	)		—			—			—
Other		—			—			—			—			—

		(4.9	)		(33.8	)		(3.4	)		(1.6	)		0.6
Individuals
Lot loans		(0.4	)		(1.5	)		(1.1	)		(1.9	)		(3.6	)
Construction		0.2			(0.5	)		0.9			(2.0	)		0.2

		(0.2	)		(2.0	)		(0.2	)		(3.9	)		(3.4	)

Total construction and land development		(11.6	)		(44.4	)		(14.8	)		(12.8	)		(3.6	)
Real estate mortgages
Residential real estate
Adjustable		1.1			5.4			5.0			2.4			5.3
Fixed rate		(1.0	)		(1.6	)		(1.9	)		(1.5	)		4.0
Home equity mortgages		2.3			(10.1	)		(4.6	)		(1.0	)		(5.7	)
Home equity lines		—			(1.3	)		(0.4	)		(0.7	)		(0.3	)

		2.4			(7.6	)		(1.9	)		(0.8	)		3.3
Commercial real estate
Office buildings		(1.2	)		(2.9	)		(5.3	)		(0.9	)		(0.7	)
Retail trade		(1.1	)		(7.6	)		(3.9	)		(0.5	)		(0.9	)
Land		—			—			—			—			—
Industrial		(6.7	)		2.3			(4.2	)		(1.8	)		(1.7	)
Healthcare		4.4			0.3			(0.4	)		1.0			(3.4	)
Churches and educational facilities		(0.5	)		(0.6	)		0.9			(0.6	)		(0.2	)
Recreation		—			—			(0.1	)		—			(0.1	)
Multifamily		(4.4	)		(1.7	)		(0.4	)		(0.8	)		(8.2	)
Mobile home parks		(0.1	)		(2.7	)		—			(0.1	)		—
Lodging		(2.0	)		(0.1	)		(1.3	)		(0.2	)		(0.2	)
Restaurant		—			(0.1	)		(0.1	)		—			(0.3	)
Agricultural		(0.3	)		(0.6	)		(0.1	)		(0.1	)		(1.4	)
Convenience stores		0.2			(1.3	)		(2.1	)		(0.3	)		1.5
Marina		(0.1	)		6.5			(0.1	)		(0.2	)		(0.2	)
Other		(1.3	)		0.3			1.2			1.2			(0.6	)

		(13.1	)		(8.2	)		(15.9	)		(3.3	)		(16.4	)

Total real estate mortgages		(10.7	)		(15.8	)		(17.8	)		(4.1	)		(13.1	)
Commercial & financial		1.0			(12.2	)		4.1			(5.2	)		2.7
Installment loans to individuals
Automobile and trucks		(0.9	)		(1.5	)		(1.3	)		(0.7	)		(0.8	)
Marine loans		(1.1	)		2.0			(7.6	)		0.1			(0.4	)
Other		(0.6	)		(0.9	)		0.1			—			—

		(2.6	)		(0.4	)		(8.8	)		(0.6	)		(1.2	)
Other		(0.3	)		0.1			—			—			—

	$	(24.2	)	$	(72.7	)	$	(37.3	)	$	(22.7	)	$	(15.2	)

Seacoast Banking Corporation of Florida
First Quarter 2011 Earnings Conference Call
April 25, 2011
10:00 AM Eastern Time

Welcome to the First Quarter Earnings Conference Call. My name is Sandra and I will be your Operator for today’s 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.

Before we get begin, I’d like to direct your attention to the statement contained at the end of our press release regarding forward statements. During the call, we are going to be discussing issues that constitute forward-looking statements within the meaning of the Securities and Exchange Act and, accordingly, our comments are intended to be covered within the meaning of Section 27A of that Act.

With me here today is Jean Strickland, our President and COO; Russ Holland, our Chief Lending Officer; and Bill Hahl, our Chief Financial Officer. As you may recall, on last quarter’s call, I said, “Our success in managing down credit risk would begin to support our return to profitability.” Well, I’m pleased this quarter to report our first quarterly operating profit since 2008 as credit and credit-related cost continue to come down and our revenue initiatives continue to produce great results. I want to spend some time later in the call discussing our revenue build because growing our customer base is what we are currently spending most of our time on these days, but first, I want to give you a credit update.

The significant improvement in earnings this quarter reflects the completion last year of our focused strategy to eliminate our exposure to our riskiest loan types following the real estate valuation decline that occurred in our markets. This, combined with slowing inflows of new problems and a more stable outlook, gives us increased confidence this quarter that these recent trends are very real. Non-performing loans have declined for six consecutive quarters and are down by 21.7% over the same time last year. We now expect significant progress in reducing these numbers even further over the next two quarters as collateral that secures approximately 50% of our non-accrual loan balances at quarter-end is now under contract for sale as part of final settlement agreements negotiated late in the first quarter.

These agreements involve a number of loan relationships and include our largest remaining problem credits. We expect to see improved credit quality throughout 2011 based on our present outlook, with accelerating improvement likely should our recent settlements close as planned. Having completed our plan to reduce credit risk, we expect our credit-related costs for 2011 will remain much improved when compared with last year.

Now back to revenue and growing our customer franchise. For some time now, we’ve been executing a business plan that is designed to produce strong organic growth in customers and increase shareholder value. It is a plan that features a low-risk posture and is intended to increase profitability and position us as a top tier performer. At the center of our plan is a strong core customer and market share performance objective, which is supported by a value proposition that resonates with customers, particularly in light of the changes that have occurred in the banking landscape and have altered the competitive environment. We have been executing sales and marketing tactics that support our plan and have been reporting strong improvements for some time now in attracting new customer households to Seacoast.

Our execution performance this quarter was, frankly, stellar, with much stronger growth in non-interest bearing checking balances than we expected, which Bill is going to speak to in a minute. Households grew again this quarter as new households added were up 28% over the same period one year earlier. Overall core deposits were up 12% over the prior year and up 14% on an annualized linked-quarter basis. The mix of non-interesting bearing deposits was 19% of total deposits, up from 15.8% one year ago.

Now I’m going to turn the call over to Bill, who will give us some more detail on the results for the quarter. Bill?

Thanks, Denny, and good morning, everybody. As in prior quarters, we have posted some slides on our website that I will refer to during my comments. As you just heard, we posted an overall operating profit for the quarter. Including the impact of the preferred stock dividend and accretion, the loss attributable to common shareholders was $0.01 per share. The improved results were largely due to lower provision and non-interest expenses and a stable net interest margin. Overall, the improvement in our results is occurring concurrently with the lower risk in the loan portfolio and some of the positive trends related to deposit and household growth where we have been driving the improvement. Notable and visible examples of our success include deposit mix and pricing, expense management, and the impact of asset liability management actions on the net interest margin. So with that brief summary of the first quarter results, I will now shift to a review of deposits on slide eight.

Year-over-year deposits declined by approximately $73 million, with an $82 million decline in higher rate single-service time certificates which were allowed to decline and were replaced with lower cost new core deposit accounts. Non-interest bearing demand deposits increased $46.6 million or 16.8% year-over-year, and the mix in deposits improved with non-interest bearing deposits increasing to 19.3% of total deposits, up from 15.8% a year ago; while time certificates declined to 32% from 35% of deposits a year earlier. So the overall reduction in deposit balances year-over-year has been positive to the margin and was driven by CD balances.

Our current strong liquidity position has enabled us to take the actions I just mentioned to refine and lower the cost of our funding profile. We also took action with our securities portfolio, primarily increasing the available-for-sale portfolio. The portfolio continues to be concentrated in higher quality and very liquid assets. Government and agency securities are the bulk of the portfolio. During the quarter, we increased our holdings of agency mortgage-backed securities. The overall portfolio grew over the past 12 months due to the strong inflow of core deposits and declining loan demand. Given what appears to be an improving economy, with a higher probability that we are moving closer to an increasing rate environment, we have been careful and have purchased all shorter effective duration structures which maintain the entire portfolio at approximately a 3.0 duration. Our continued success in liquidating non-performing assets will also provide a need for future investments.

I will now take a moment to talk about the margin on slide nine. The net interest margin expanded slightly, increasing by 6 basis points to 3.48% compared to a year earlier, and was unchanged from the sequential quarter. Deposit volume, mix and pricing, combined with increases in the investment portfolio, more than offset the negative impacts of a decline in the accruing loans. As we look out into the second quarter and beyond, we expect a stable to moderate margin expansion in the near term, at least until loan growth returns. In fact, some key variables such as loan and deposit volumes, pricing and market interest rates suggest margin could improve more robustly in the latter half of the year.

Moving to slide five and provision expense, total provision for credit losses for the quarter was $640,000, down $3.3 million from the fourth quarter. Net charge-offs of $4 million in the quarter are approximately $600,000 lower compared to the fourth quarter level. This is the third quarter in a row of a decline in net charge-offs. Despite the notable improvement in asset quality and the significant expected improvement in the next two quarters, the allowance remains relatively strong for the time being, as the outlook for economic improvement and home values remain uncertain.

Now moving on to non-interest income on slide 10, non-interest income, excluding security gains, in the quarter was down 20% compared to last quarter, but was up 1% compared to last year. After adjustments for the sale of the merchant banking business in the fourth quarter, non-interest income declined by only 8% sequentially as a result of retaining residential and marine loan production on the books instead of earning fees from sales. Sequential revenue increases were reported in wealth management and in interchange fees on deposit accounts. The decline in service charge revenue was driven primarily by fewer days in the first quarter when compared to the fourth quarter.

Now turning to slide seven for the review of expenses, non-interest expenses declined 14% when compared to the first quarter of 2010, primarily as a result of lower OREO expenses. On this slide, as in prior quarters, we have adjusted for some items that are detailed on this slide that are not related to core operations. On this basis, expenses have declined by 1.5% compared to the first quarter of 2010 and are nearly unchanged from the sequential quarter.

So the highlights of what I have discussed this morning are: 1) our earnings improved significantly; 2) the provision expense declined due to improved asset quality; 3) the margin remained relatively stable, driven by continued shift in our funding mix to lower-cost deposits and some additional investments; and 4) the non-interest income improved versus last year’s first quarter, in part due to the net household growth. Finally, non-interest expenses have declined as cyclically sensitive expenses are lower and we have managed all other expenses tightly. We are encouraged by the continued improvement in our credit metrics. The remaining questions are related to how quickly and strongly the economy recovers and where home values will trend from here. At this time, we are looking forward to continued improvement in our results as 2011 progresses.

Thanks, Bill. I thought I would close with a few comments on our deferred tax asset, the DTA. The support for our decision, which occurred some time back, to place a reserve on our deferred tax asset was largely the uncertainty with respect to emerging credit costs and the impact this was to have on our profitability. As our credit risk improves and as non-accruing loans decline, our visibility with respect to future profitability begins to improve and we can place increased reliance on our forecast. Further supporting our forecast of future earnings is our success in growing our customer base and the resulting improvements in revenues and the impact on bottom-line performance. So we believe a decision to recapture deferred tax assets requires a supportable forecast of future taxable earnings and the elimination of the basis for which the reserve was created in the first place, which we feel is beginning to be supported by our improving credit risk profile. Realization of this asset could increase common shareholders’ equity by up to $48 million. We are not certain of the timing, but we look forward to discussing our results with you over the balance of this year and hopefully get to a point where we can begin to realize the asset.

Finally, I want to conclude by thanking all of our 500 Seacoast associates for the results that they have produced this quarter and for the hard work and the often difficult work that each of them have undertaken to help get us here. Your commitment to each other and to our customers has been outstanding and is deeply appreciated.

At this point, I’d like to open the call for questions, and we’ll turn the call back to the 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. There will be a delay before the first question is announced. If you are using a speakerphone, you may need to pick up the handset first before pressing the numbers. Once again, if you have a question, please press star then one on your touchtone phone.

The first question is from Joe Fenech from Sandler O’Neill. Please go ahead.

Denny, the main question I have for you is with respect to capital. If I look at your capital position, it seems as though we are coming to the point where that TCE ratio bottoms out, if we are not there already, but you do still have TARP and the TCE is still at the lower end of your peer group. On the other hand, as you just talked about, the DTA is going to help you at some point pretty substantially. I mean, how do you see the capital situation playing out? Are you content to wait it out, knowing that that benefit is there down the road, even if the timing is a bit uncertain? Or would you consider raising a bit more capital here just to solidify yourself a little bit more in anticipation of that?

Well, you know, you are right about the TCE and I understand what you are saying. You look at our regulatory ratios, however, and they are extremely full and solid. We are moving into a future of capital accretion and I think it would be sensible probably for us to delay any decision on the whole repayment issue until we get a little further down the road. We don’t have any present plans to pursue that in the near term, and that is, in part, and largely due to the fact that we see much improved performance coming over the next year. Again, once we get back to accreting capital, you see the TCE ratio start to improve pretty meaningfully. So the press for us is to improve our ability to earn over the next 12 months and improve our actual earnings over the next 12 months and that’s where we are headed, that’s what we are looking at, and that’s what is going to be good for shareholders.

Fair enough. And then a different topic, Denny. What’s the likelihood you think that these settlements you talked about will close as planned? Just trying to get a sense as to whether you think this is as close to 100% done deal as you can get without it actually happening, or if there are certain things that you still need to have to happen in order to get those sales closed.

Right, well before I answer that question, just one other comment on looking forward with the DTA. You mentioned you thought maybe our TCE ratio had bottomed or was bottoming, and we would share that view as we look forward. So we see some nice accretion out over the next year as we get into a stronger position with better core earnings, particularly in the second half of the year.

To answer your question on the transactions, there are no contingencies in the transactions and so we feel pretty confident about them. But, you know, like any transaction anywhere, anything can happen, so we are cautious. But it’s a significant enough issue, a significant enough series of transactions that we felt the need to disclose it. So, I guess that’s all I have to say on that. Russ, do you have any other comments; do you agree?

Okay. And then lastly, Denny, your best guess at this point, and I know it’s tough to say, but when do we see the loan balances level off a bit, or the new stuff you are putting on offset the payoffs and the workouts of the remaining problems that you have—your best guess, is that a 2011 event?

Yeah, well setting aside the potential significant payoffs coming of non-accrual loans, we are already there in terms of seeing some stabilization. Russ, I think, in the last month, we actually saw loan growth, right?

Yeah. We are seeing loan growth in C&I and in owner-occupied real estate; we have a strong pipeline in that area; and we see continued improvement in the credit quality.

I think I said back in July of last year that we had finalized all of our workout issues and moved some of our softer workouts back into our Special Assets area. So late last year, we really began to get back out in the market to do a much more aggressive job—not that we had left the market, but got much more focused on the business side and commercial side—and we are now seeing those pipelines develop very nicely. And I think we will have some good stuff to talk about over the next couple of quarters.

So just to be clear, we think the declining loan balances have pretty well come to an end, except for the fact that we have got these problem loans that are going to liquidate at some point, and that will be a drag on growth. But that’s a big turnaround.

Okay. And then the increase in accruing restructured loans this quarter, can you talk a little bit about that?

As there is continued high unemployment in our markets, we work with our customers. We also have some commercial accounts that we’ve had very good success restructuring without any re-defaults. Our re-defaults on the residential side are half of what the industry average is. As we have reported before, we continue to experience about a 20% re-default rate on the residential side versus an industry standard of 40%. So, we believe we do a superior job, both in identifying, declaring and working through the issues and in restructuring loans with borrowers for their success in being able to repay us; and it’s a collection strategy that will produce better results for us.

And I think that’s the key, Joe. We have a high level of troubled debt restructures relative to peers and others, but we think it was an appropriate strategy to pursue. We have been very proactive in reaching out, particularly to some of our commercial borrowers. About two thirds of the TDRs are commercial and about one third are residential. The commercial proactive stance that we have taken has been very effective, we think, in improving our risk profile as we’ve gone forward, and so it’s working well. We said before it happened that this was what we were going to do. We said that about 18 months ago and it’s worked very well. Most of those loans are CRE loans on the commercial side of TDR.

Thank you. The next question is from Christopher Marinac from FIG Partners. Please go ahead.

I wanted to ask about the pending loan sales that you mentioned in the press release. What happens mechanically in the income statement when those occur? Is there any additional charge-offs or net loss on OREO that occurs when that is finalized?

Got it, okay. And then, is there any stabilization or maybe trend that you can talk about in the charge-off level? Would this be a good quarter to look at it as a guidepost or will you have some volatility in charge-offs still?

It’s certainly possible we could still have some volatility in charge-offs. We think the overall trend is down. I guess the wildcard would be any new problem credits deteriorating. Known issues, known problems, we feel pretty confident about those, but that’s always a possibility in this kind of tough environment we still are in today. So, we think, relative to a year ago or two years ago, nothing like that is ahead of us because we have eliminated the risk; it’s gone. Construction book is completely liquidated. What we have left is well contained, well understood and well reserved for, so it would just be a handful of deteriorations we might see over the next year. We don’t see it at the moment, otherwise we would have said something about it, but that’s a possibility. We could see some volatility, but nothing like we saw the last two years....much more contained and small. And we think the overall trends should continue to improve.

Great. And then I guess just to follow up on the new loan growth that you had mentioned, and Russ had mentioned as well, in C&I particularly, how are those priced relative to the competition? And also how do you think about new loans in terms of reserves, just in isolation, of course, for any new loan growth?

Well, the pricing is...as you know, we try to get as much as we possibly can in relation to the competition, but I think we are competitively priced. It is a price sensitive market right now, so we are working as hard as we can to get the pricing up and the fees. What we are really focused on is the full relationship with the customer, the full deposit relationship and any other ancillary business we can get: their mortgage, car loan, any opportunity we may have.

We are targeting our business lending in specific segments that have a better outlook today; and those segments, which should come as no surprise to you, are being targeted by other banks. The competition is there in those segments of the market that are performing well and likely to continue to perform well. It’s a challenge but we are making some progress, and we think have a value proposition that really helps us make that argument that we are really the only convenient local bank left in most of our markets given what happened here.

Answering your question on the allowance for the new loans, the amount that’s reserved on the new loans has been formed by our history of loss, as well as subjective factors, and we appropriately reserve new loans coming on.

Thank you. The next question is from Jefferson Harralson from KBW. Please go ahead.

I think you mentioned a change in how you are thinking about the marine finance loans. It sounded like you’re going to be keeping more on the balance sheet. Can you talk about that; was there a change in the gain on the sales of them? Could you have gotten less with them if you had sold them, or is it just an asset that you want to keep on the books to help grow the balance sheet?

Yeah, good question. No change in our outlook for marine. We are not going to add marine loans into the portfolio. We just had a couple of loans that we added this quarter that were mentioned, but it really was insignificant. No change there.

We’ve always retained a small portion of those loans that are locally generated; this would be for local borrowers, and we just had a couple of loans there that were added to the portfolio.

All right, thank you. And just a follow-up on the C&I growth this quarter, which was great to see. Can you just talk about the types of companies that you’re doing business with that are showing that growth?

Well, as Denny pointed out, it’s very targeted to professionals; primarily in our market, its in the medical area, but we are seeing across the board an increased pipeline in all of our markets, including Orlando, Palm Beach and the Treasure Coast, of loans to professionals and small businesses.

Thank you. The next question is from David Bishop from Stifel Nicolaus. Please go ahead.

Most of my questions have been answered, but I don’t know if you have it off the top of your head or have that in front of you, the level of special mention loans? I know that’s something that banks must start to disclose on ...

Yeah, you know what? We didn’t bring that with us or in the press release, but it will be in our 10-Q. We didn’t see any substantial change in that. You know, just things continue to rock along there. No big moves at all, one way or the other from year-end.

And then, there’s a slide in terms of the core operating expense level bumping around $17.5 million or so. As you look out in terms of the migration towards core profitability, do you see any improvement over and above that level that we saw in the first quarter, that $17.5 million run rate?

We think that could happen, particularly in the second half of the year as we resolve some of these credits and the overhead associated with that, particularly legal expenses and that sort of thing really begin to moderate. We see that coming down in the second half, plus we are working on some internal initiatives to re-challenge our overhead levels and improve efficiencies at different areas that may see some pickup there. On the other hand, we see improved volumes out later this year, particularly in the lending area, and those improved volumes are going to offset the efficiency pickups as we produce more loans. So it’ll be a more efficient enterprise, but we are really focusing most of our attention on the revenue side of the equation. That’s what’s out of whack.

Thank you. The next question is from Mac Hodgson from SunTrust Robinson. Please go ahead.

Along those same lines, an expense-related question. Your footnote on that non-adjusted expense line, that it doesn’t include—or rather core doesn’t exclude—expenses related to credit admin and default management costs. Do you have any idea of the level of expenses that’s in that number that’s related to those two items?

Yeah, it’s a good question. We haven’t disclosed that information. That’s probably something we’ll start looking at though as we project forward, so we don’t have anything to say there. Any comments, Bill?

Just what you said, that it’ll probably be a balancing thing. As those costs go down, the cost of producing more loans is going to shift, so I don’t think it’ll be a full cost-out there.

Well, you know, if you look back historically, Seacoast operated with an efficiency ratio in the mid to high 60s. And when you look at other well run banks throughout the country that are executing a similar strategy as we are, which is very much focused on deposit acquisition—a deposit focus and low risk focus—you see similar efficiency ratios. So our near-term objective is to get back to that level, which we think we can do. Then longer term, I think we have to be challenged to bring it down into the low 60s. But shorter term, we want to get it back, as quickly as possible, into the high 60s and then bring it on down.

Okay. And then, just to clarify, the comments about the pending problem loan payoffs, you said about 50% of the non-performers, so that’s around $30 million. Is that how we should think about what’s coming off?

Thank you. Once again, if you would like to ask a question, please press star then one on your touchtone phone. The next question is from Michael Rose from Raymond James. Please go ahead.

Just had a question on the loan yields. They have kind of bumped around a little bit. Just trying to look at what you’re booking new production at and maybe how that’s varied based on competition. And then, on the other side of the equation, how much more room do you have on the funding side to lower funding costs? Thanks.

Well, we’ve been consistent on the yield. (cross talking) I think what you are seeing in movement is some “noise” (cross talking).

Yeah, that’s probably a fair way to place that. And on the funding side, I think we’ll see some improvement as we did even this quarter; but it’ll be principally driven by, as it has been, the mix and the re-pricing on the CD portfolio, which is about 1.78%. So as we get some maturities—basically, they are longer term CDs that are coming up for renewal—we will see some improvement in the funding side (cross talking).

Also on the funding side, I think we will see continued growth in some of the lowest cost categories, which actually will now, as we look forward, start producing net revenues because it’ll actually start growing the overall portfolio. I think you are right, Michael; we have run through a lot of low fruit in terms of replacement. Now we will start seeing the overall deposit portfolio grow and be invested into loans and the investment portfolio and at positive spreads.

As for your first question on the loan yields, I don’t know that we quite answered that, but we think that some of the volatility you have seen starts to diminish as we get through this period where we had a lot of adds and deletes in terms of loans going on and off of non-accrual and the like. That gets more stable going forward.

Thank you. The next question is from Kenneth James from Stern Agee. Please go ahead.

I wonder if you could comment on the pending loan/NPA workouts. Was that the driver of the magnitude of the reserve release this quarter, or will that spill over more into next quarter? I guess, basically, what I’m asking is, should we expect the gap between NCOs and provision to be narrower than it was this quarter going forward, or not?

Yeah. A good portion of that had been previously recognized; some of it accounted for what happened this quarter. However, if you look at the allowance analysis that we produce every quarter, the overall risk in the portfolio is really beginning to moderate and reduce. That was probably a bigger driver than the specific transactions, because those transactions had been largely reserved or written down or whatever over the past year. But some of it was in there. I think, to get to your question, the bigger issue is that the risk level in the portfolio continues to abate, and as that occurs, the pressures on the provision begin to recede a little bit.

Okay. And then last quarter you made some commentary about taking an enterprise-wide review of expenses and possibly having some more detailed expense saving assumptions or cost saving measures for this year. Is there any color on that?

Yeah. Not yet and it’s something we said we were going to initiate in the first quarter and we have. We are looking at that. As we continue to have specific information to share, we’ll share it with you. On the other side of that equation are the growth opportunities in the market with the banks that have failed. Frankly, the success of our business model now is that it is really beginning to gain momentum on the other side. So it’s a matter of continuing to grow revenues without growing overhead, and pushing overhead down as some of the cost of the problems begins to quickly moderate over the next year. We think by time we get to the end of this year, the whole equation looks—in terms of the overhead ratio—a lot better.

Thank you. The next question is from Marc Heilweil from Spectrum Advisory. Please go ahead.

I wonder if you could give us a little commentary— I realize this is politically difficult–on the current regulatory environment that you are encountering and whether it’s creating any pluses or minuses for you?

Well, I would say specific to the institution, we have a very good working relationship with our primary regulators and, frankly, they have been very helpful to us as we have gone forward through this rather difficult period of the last few years. There is, as you well know, great uncertainty with respect to the Dodd-Frank issues and the like and what impact that’s going to have on the industry going forward, and we’ll just have to see how that affects us.

But you’ve made some comments about the difficult environment and the uncertainty. Are there any specifics that you would single out that are on your mind that would perhaps impede the comeback that the institution is...

Yeah. Well, on the one hand, they’re probably too numerous to discuss on this call. If you want to call me later, I’d be happy to talk with you a little more about it. But, suffice it to say, that’s just part of our business world and that’s what we deal with every day.

Well, I guess this is coming from somebody who is not familiar with the low level...or the activity in your market area exactly. Is there something in the market area that is of particular concern to you that’s going on right now?

Well, you know, the markets are healing and improving. Unemployment remains very high in our markets, in some of our markets as high as 13% or so. That’s down from 15%, but a pretty horrific environment from that standpoint. But home prices have stabilized. Even though you’ve seen a decline in home transactions announced nationally, transactions have actually been fairly strong here since late last year— a little bit of a dip in the first quarter in closings, but we still see very, very strong pipelines now looking out over the next two quarters. That’s what I’m hearing from realtors. Housing has been the big question down here and that appears to be improving. We are still very cautious, very concerned, because unemployment is still higher than it really needs to be long term, but we’ve seen some stability and improvement. Housing prices are now at a level of affordability that I think could begin to create somewhat of a floor under pricing, which is positive for us. Thank you.

Thank you. The next question is from David Bishop from Stifel Nicolaus. Please go ahead.

Yeah, Denny, just a quick follow-up as it relates to whether you are seeing some pockets of loan demand there. Are you seeing any revamping or a shift in terms of the competitive landscape out there, or are some of the super regionals starting to burrow down in the market? Is it getting frothy or any more competitive out there?

Yeah. It’s competitive. I think the main difference is it’s Seacoast, on the one hand, and four or five megabanks on the other hand, and nobody in the middle—and that’s going to help us. Russ, do you have some comments?

Well, we’re starting to see competitors such as TD and PNC get a bit of leg in the market, but the other major competitors are pretty quiet. B of A and Wells are really still not aggressive in our market.

Have you seen much from any calling efforts (inaudible)...from special interests, you know, via FDIC transactions from some out-of-market banks. Anything from that prospective yet?

And once again, if you would like to ask a question, please press star then one on your touchtone phone. The next question is a follow-up question from Joe Fenech from Sandler O’Neill. Please go ahead.

Okay. Any preliminary thoughts in terms of (cross talking) ...you can’t discuss details, but...

If we had anything we needed to work in, we would have done it in March. I mean, no change, nothing to really talk about there. It was a positive review; we are making progress. Progress is recognized, and we look forward to the rest of the year.

Great. Well, thank you very much for attending today and we look forward to reporting our results after the second quarter. Thank you.

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

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

•

Loss of $579,000, or $0.01 per share, improved significantly compared to last year

•

Solid capital position with estimated tangible common equity (TCE) ratio of 7.7% when DTA valuation allowance of $47.7 million is recaptured.

•

Nonperforming loans declined from $68.2 million at December 31, 2010 to $66.2 million during the quarter

•

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

•

Cost of deposits for the quarter declined 4 basis points to 0.72%; total interest bearing liabilities down 3 basis points to .98%

•

Improved asset quality trends continued with nonperforming assets, nonaccrual loans and net charge-offs all declining

•

Operating trends continue to be encouraging and we remain acutely focused on executing client satisfaction and retention initiatives to drive steadily improving results


	1Q-2011			4Q-2010			3Q-2010			2Q-2010
	Estimate			Actual			Actual			Actual
Tier 1 Capital Ratio		16.94	%		16.57	%		17.11	%		17.62	%
Total Risk Based Capital Ratio		18.21	%		17.84	%		18.38	%		18.89	%
YTD Average Equity to YTD Average Assets		8.14	%		8.27	%		8.15	%		7.82	%
Tangible Equity to Tangible Assets		7.84	%		8.10	%		8.76	%		8.78	%
Tangible Common Equity to Tangible Assets		5.60	%		5.81	%		6.48	%		6.60	%
Tangible Common Equity to Risk Weighted Assets		9.47	%		9.43	%		10.32	%		10.78	%

Funding & Liquidity
Stable Funding Profile and Strong Liquidity Position

- Customer deposits and sweep repos were $1.800 billion at March 31, 2011 ⁽¹⁾

•

On balance sheet cash liquidity averaged approximately $204 billion for the first quarter

•

Combined available contingent liquidity from the Federal Reserve, FHLB, and free securities approximately $739 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.

(1)

Does not include personnel expense related to credit administration or default management costs


	($ in thousands)
	1Q-2011		Mix			1Q-2010		Mix
Demand deposits (noninterest bearing)	$	324,879		19.27	%	$	278,205		15.81	%
Savings deposits		828,130		49.11	%		865,909		49.22	%

Total Demand and Savings	$	1,153,009		68.37	%	$	1,144,114		65.03	%
Other time certificates		278,437		16.51	%		304,807		17.32	%
Brokered time certificates		7,371		0.44	%		24,640		1.40	%
Time certificates of $100,000 or more		247,393		14.67	%		285,872		16.25	%

Total Time Deposits	$	533,201		31.63	%	$	615,319		34.97	%

Total Deposits	$	1,686,210				$	1,759,433

•

Margin is expected to remain stable until accruing loans outstanding begin to increase


$ in thousands	Q-1-2011		Q-4-2010		Q-3-2010		Q-2-2010		Q-1-2010
Total Noninterest Income (excluding securities gains)	$	4,209	$	5,283	$	4,801	$	4,601	$	4,163
Gains on sale of merchant services		—		600		—		—		—

	$	4,209		4,683	$	4,801	$	,4601	$	4,163
Highlights include:
Service Charges	$	1,442	$	1,590	$	1,511	$	1,452	$	1,372
Trust Income		523		510		500		491		476
Mortgage Banking		395		580		654		464		421
Brokerage		320		325		306		257		286
Marine		298		355		330		310		339
Debit Card		891		814		810		822		717


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

April 28, 2011	By:	/s/ Dennis S. Hudson, III

		Name: Dennis S. Hudson, III
		Title: Chairman & Chief Executive Officer


Exhibit No.		Description

99.1		Press Release dated April 25, 2011 with respect to Seacoast Banking Corporation of Florida’s financial results for the first quarter ended March 31, 2011
99.2		Transcript of Seacoast’s investor conference call held on April 25, 2011 to discuss the Company’s financial results for the first quarter ended March 31, 2011
99.3		Data on website containing information used in the conference call held on April 25, 2011


	($ in thousands)
	1Q–2011		4Q–2010		1Q–2010
Noninterest expenses	$	19,667	$	27,834	$	22,972
Strategic plan & credit related professional fees		247		179		771
OREO and REPO expenses (1)		1,397		1,414		527
Net loss on OREO & repossessed Assets		449		8,763		3,824

Nonrecurring expenses	$	2,093	$	10,356	$	5,122

Core operating expenses	$	17,574	$	17,478	$	17,850


	1Q 2011			1Q 2011
	vs 4Q 2010			vs 1Q 2010
Noninterest expenses		-29.3	%		-14.4	%
Strategic plan & credit related professional fees
OREO and REPO expenses (1)
Net loss on OREO & repossessed Assets
Nonrecurring expenses		-79.8	%		-59.1	%
Core operating expenses		0.5	%		-1.5	%


Date of Report (Date of Earliest Event Reported):		April 25, 2011


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


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


• •		Favorable deposit volume and mix trends continued Expenses remain well managed


	1Q-10			2Q-10			3Q-10			4Q-10			1Q-11
Net Interest Margin		3.48	%		3.27	%		3.35	%		3.42	%		3.48	%