EX-99.1 2 v343167_ex99-1.htm EXHIBIT 99.1

 

EXHIBIT 99.1

To Form 8-K dated April 25, 2013

 

NEWS RELEASE

 

SEACOAST BANKING CORPORATION OF FLORIDA

 

Dennis S. Hudson, III

Chairman and Chief Executive Officer

Seacoast Banking Corporation of Florida

(772) 288-6085

 

William R. Hahl

Executive Vice President/

Chief Financial Officer

(772) 221-2825

 

SEACOAST REPORTS $2.0 MILLION IN NET INCOME FOR THE QUARTER

 

Expense reductions on target

·Core expenses down $920,000 compared to year ago
·Total expenses down $2.8 million or 12.7% compared to year ago
·Targeting at least $7.4 million in reduced expenses for 2013

 

Revenue and growth initiatives produce results

·Noninterest income (excluding securities gains) up 20.1%
·Average demand deposit balances up 22.1%
·Loan production strong at $119 million during the quarter

 

Credit quality improvements continue

·Nonperforming loans fall to 2.88% of loans
·Other real estate owned declined by 30.1%
·Allowance coverage for nonperforming loans increased to 61.2%

 

STUART, FL., April 25, 2013 – Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCF), today reported first quarter 2013 net income of $2,044,000 compared to $938,000 for the same quarter last year. Net income available to common shareholders for the first quarter 2013 totaled $1,107,000 or $0.01 per diluted common share, compared with $1,000 or $0.00 per diluted common share for 2012.

 

“We made substantial progress this quarter as our previously announced expense reductions were implemented and our revenue initiatives continued to build momentum. We see further opportunities for growth in commercial lending in particular, as we continue to add key personnel in our Central and South Florida markets,” said Dennis S. Hudson III, Chairman and Chief Executive Officer. “Over the past year we have invested significant resources to support and more rapidly deploy commercial lending personnel in our markets. In addition we have continued to invest in our consumer and residential lending platforms and better integrate the sale of credit products into our retail banking franchise as the local economic environment has improved.

 

 
 

 

We remain focused on expanding our customer franchise and expect strong loan production, core deposit growth and fees generated to continue as we execute our growth initiatives. Although the interest rate environment remains a challenge to better revenue growth, exceptional execution of our growth initiatives by our associates and continued focus on improving our cost structure is the key to improved results in the months ahead.

 

Growth Initiatives Build Core Earnings

 

·Total revenues, excluding securities gains and loss on sale of commercial loan, for the quarter ended March 31, 2013 were $21.9 million, compared to $21.8 million for the fourth quarter 2012 and up $352,000 compared to first quarter 2012;
·Average noninterest bearing deposits totaled $433.8 million in the first quarter 2013, up $17.3 million or 4.2 percent compared to the fourth quarter 2012, and up $78.4 million or 22.1 percent from the same quarter last year;
·First quarter average loans increased $6.0 million or 1.9 percent annualized and were up $33.9 million year over year or a growth rate of 2.8 percent; and
·Average total deposits increased $29.2 million or 1.7 percent linked quarter

 

Over the last several years, our focused tactical initiatives have produced strong organic core customer deposit account growth and increased core customer funding. Core customer funding totaled $1,616 million at March 31, 2013, up $157 million from last year’s first quarter and up 27.4 percent since the first quarter 2011. In addition deposit mix continued to improve with noninterest bearing deposits increasing to almost 26 percent of total deposits at quarter end 2013.

 

(Dollars in thousands)  First
Quarter
2013		   First
Quarter
2012		   First
Quarter
2011		   2013 vs
2012
Change		   2012 vs
2011
Change		 
Customer Relationship Funding                         
Demand deposits (noninterest bearing)  $453,144   $394,532   $324,879    14.9%   21.4%
NOW   482,913    436,712    396,369    10.6    10.2 
Money market accounts   341,216    330,409    310,942    3.3    6.3 
Savings deposits   177,213    148,068    120,819    19.7    22.6 
Time certificates of deposit   307,678    427,738    533,201    (28.1)   (19.8)
Total deposits   1,762,164    1,737,459    1,686,210    1.4    3.0 
Sweep repurchase agreements   161,678    146,316    115,185    10.5    27.0 
Total core customer funding (1)   1,616,164    1,459,037    1,268,194    10.8    15.0 
Demand deposit mix (noninterest bearing)   25.7%   22.7%   19.3%          

 

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

 

 
 

 

Additional growth highlights for first quarter 2013:

 

·Interchange fees and service charges on deposit accounts grew by 18.0% and 6.2%, respectively, compared to last year’s first quarter;
·Fees from wealth management services increased to $1.1 million for the first quarter, up $294,000 or 36.4 percent compared to a year ago; and
·Improved deposit mix continued to lower deposit costs, which declined to 17 basis points for the quarter, down 29 basis points year over year

 

The following details noninterest income for the first quarter ended March 31, 2013 compared to the last four quarters:

 

Credit Quality Improves

 

(Dollars in thousands)  First
Quarter
2013		   Fourth
Quarter
2012		   Third
Quarter
2012		   Second
Quarter
2012		   First
Quarter
2012		 
Noninterest Income:                         
Service charges on deposit accounts  $1,551   $1,677   $1,620   $1,487   $1,461 
Trust income   676    592    550    564    573 
Mortgage banking fees   1,114    1,030    1,155    902    623 
Brokerage commissions and fees   425    292    247    298    234 
Marine finance fees   272    258    279    244    330 
Interchange income   1,264    1,157    1,119    1,154    1,071 
Other deposit based EFT fees   98    83    70    84    99 
Other   531    520    639    486    546 
Loss on sale of commercial loan held for sale   0    (1,238)   0    0    0 
Total   5,931    4,371    5,679    5,219    4,937 
                          
Securities gains, net   25    582    48    3,615    3,374 
   $5,956   $4,953   $5,727   $8,834   $8,311 

 

·Net charge-offs declined to $1.5 million in the first quarter 2013 compared to $3.4 million a year ago or a decrease of 55.6 percent;
·Nonperforming loans totaled 2.88 percent of loans, compared with 3.34 percent last quarter and 3.43 percent one year ago;
·Nonperforming assets to total assets of 2.09 percent is lower compared to 2.64 percent a year ago;
·The allowance coverage ratio for nonperforming loans increased to 61.2 percent at quarter-end; and
·Net charge-offs as a ratio of average loans declined to 0.49 percent compared to 0.69 percent for the last quarter and 1.13 percent for the first quarter 2012.

 

 
 

 

(Dollars in thousands)  First
Quarter
2013		   Fourth
Quarter
2012		   Third
Quarter
2012		   Second
Quarter
2012		   First
Quarter
2012		 
                          
Net charge-offs  $1,517   $2,151   $2,416   $6,275   $3,415 
Net charge-offs to average loans   0.49%   0.69%   0.79%   2.05%   1.13%
                          
Loan loss provision  $953   $1,136   $900   $6,455   $2,305 
Allowance to loans at end of period   1.76%   1.80%   1.92%   2.02%   2.01%
                          
Restructured loans (accruing)  $41,170   $41,946   $44,179   $54,842   $57,665 
                          
Nonperforming loans  $35,208   $40,955   $44,450   $48,482   $41,716 
Other real estate owned   10,850    11,887    8,888    7,219    15,530 
Nonperforming assets  $46,058   $52,842   $53,338   $55,701   $57,246 
                          
Nonaccrual loans and accruing loans 90 days or more past due to loans outstanding at end of period   2.88%   3.34%   3.70%   3.97%   3.43%
                          
Nonperforming assets to total assets   2.09    2.43    2.56    2.64    2.64 

 

Noninterest Expenses Meaningfully Reduced

 

Previously announced plans to reduce both core operating expenses and total expenses were fully implemented at year end which meaningfully reduced our expense structure in the first quarter of 2013. Total noninterest expenses fell by $2.8 million or 12.7 percent for the quarter compared with the prior year. Contributing to the decline were substantial improvements in expenses related to OREO and other asset dispositions as overall asset quality continued to improve as well as reduced core operating expenses.

 

Core Operating Expenses for the quarter were reduced by $920 thousand or 4.8 percent compared with the prior year and were down $868 thousand or 4.6 percent compared with the fourth quarter of 2012. Core operating expenses for the quarter included $538 thousand in salaries and employee benefits expense associated with investments in new lending personnel related to our growth initiatives.

 

 
 

 

Noninterest expenses for the first quarter 2013 are presented below compared to the prior four quarters:

 

(Dollars in thousands)  First
Quarter
 2013		  

Fourth

Quarter
 2012

   Third
Quarter
2012		  

Second

Quarter
2012

   First
Quarter
2012		 
Noninterest Expense:                         
                          
Salaries and wages  $7,437   $7,258   $7,442   $7,297   $7,055 
Employee benefits   2,223    1,860    1,924    1,916    2,010 
Outsourced data processing costs   1,498    1,904    1,923    1,834    1,721 
Telephone / data lines   285    293    299    297    289 
Occupancy expense   1,755    1,896    1,876    1,818    1,882 
Furniture and equipment expense   561    585    556    607    495 
Marketing expense   449    707    785    677    926 
Legal and professional fees   796    1,114    1,122    1,637    1,541 
FDIC assessments   717    697    695    707    706 
Amortization of intangibles   195    195    196    196    201 
Other   2,153    2,428    2,018    2,314    2,163 
Total Core Operating Expense   18,069    18,937    18,836    19,300    18,989 
                          
Severance and organizational changes   33    84    839    138    0 
Legal and professional –                         
preferred stock registration   0    0    0    0    235 
Branch consolidation   0    407    232    125    0 
Recovery of prior legal fees   0    0    (500)   0    0 
Net loss on OREO and repossessed assets   567    157    561    790    1,959 
Asset dispositions expense   290    200    364    368    527 
Total  $18,959   $19,785   $20,332   $20,721   $21,710 

 

Over the past year, we also redeployed overhead into additional loan production personnel while simultaneously reducing overall operating expenses. We believe these investments are particularly important in the current low rate environment. Investments in additional lending and credit support personnel have been significant over the past year and are a critical component of our commercial and business banking growth plan. Annual salaries and benefits added to our lending and credit support teams during each of the past two years and for the quarter are presented in the table below:

 

Annual Salaries and Benefits Added to Lending and Credit Support Teams

 

   First
Quarter		   Year-end     
(Dollars in thousands)  2013   2012   2011   Total 
Loan production and support personnel:                    
                     
Commercial  $231   $2,065   $527      
Residential   33    396    248      
   $264   $2,461   $775   $3,500 

 

 
 

 

As shown in the table below, total loan originations and pipeline balances have been growing over the prior four quarters and now total over $100 million for the first quarter 2013 as a result of the investments in revenue producing personnel in 2011 and 2012. Also included in the table below, are the salaries and benefits associated with new commercial loan officers and credit support personnel with tenures of six months or less for each quarter of 2012 and the first quarter of 2013. These costs are included in core operating expenses, are significant and are considered investments that impact our efficiency in the short run.

 

(Dollars in thousands)  First
Quarter
2013		   Fourth
Quarter
2012		   Third
Quarter
2012		   Second
Quarter
2012		   First
Quarter
2012		 
                     
Commercial pipeline  $63,842   $26,809   $45,769   $29,858   $35,705 
Commercial loans closed   36,973    49,190    24,628    21,710    13,354 
Total loan originations and pipeline  $100,815   $75,999   $70,397   $51,568   $49,059 
Salaries and benefits, lenders and support personnel < six months  $538   $345   $332   $228   $204 
Total revenues, excluding securities gains and loss on sale of commercial loan  $21,931   $21,817   $21,631   $21,226   $21,579 

 

Our revenue growth is being positively impacted with increased loan production by our investment in new loan production personnel and core operating leverage is expected to improve in the future as productivity improves.

 

The Company will host a conference call on Friday, April 26, 2013 at 9:00 a.m. (Eastern Time) to discuss its earnings results and business trends. Investors may call in (toll-free) by dialing (888) 517-2458 (access code: 6117222; leader: Dennis S. Hudson). Charts will be used during the conference call and may be accessed at Seacoast’s website at www.seacoastbanking.net by selecting “Presentations” under the heading “Investor Services”. A replay of the conference call will be available beginning the afternoon of April 26 by dialing (888) 843-7419 (domestic), using the passcode 6117222.

 

Alternatively, individuals may listen to the live webcast of the presentation by visiting the Company’s website at www.seacoastbanking.net.  The link to the live audio webcast is located in the subsection “Presentations” under the heading “Investor Services”.  Beginning the afternoon of April 26, 2013, an archived version of the webcast can be accessed from this same subsection of the website.  This webcast will be archived and available for one year.

 

Seacoast, with over $2.2 billion in assets, is one of the largest independent commercial banking organizations in Florida.  Seacoast has 34 offices in South and Central Florida and is headquartered on Florida’s Treasure Coast, which is one of the wealthiest areas in the nation.

 

 
 

 

Cautionary Notice Regarding Forward-Looking Statements

 

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

 

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

 

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

 

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2012 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 
(Dollars in thousands,  March 31, 
except share data)  2013   2012 
Summary of Earnings          
Net income  $2,044   $938 
Net income available to common shareholders   1,107    1 
           
Net interest income (1)   16,055    16,689 
           
Performance Ratios          
Return on average assets-GAAP basis (2), (3)   0.38%   0.18%
Return on average tangible assets (2), (3), (4)   0.41    0.20 
           
Return on average shareholders' equity-GAAP basis (2), (3)   5.09    2.26 
           
Net interest margin  (1), (2)   3.15    3.33 
           
Per Share Data          
Net income diluted-GAAP basis  $0.01   $0.00 
Net income basic-GAAP basis   0.01    0.00 
           
Cash dividends declared   0.00    0.00 

 

   March 31,   Increase/ 
   2013   2012   (Decrease) 
Credit Analysis               
Net charge-offs year-to-date  $1,517   $3,415    (55.6)%
Net charge-offs to average loans   0.49%   1.13%   (56.6)
Loan loss provision year-to-date  $953   $2,305    (58.7)
Allowance to loans at end of period   1.76%   2.01%   (12.4)
                
Nonperforming loans  $35,208   $41,716    (15.6)
Other real estate owned   10,850    15,530    (30.1)
Total nonperforming assets  $46,058   $57,246    (19.5)
                
Restructured loans (accruing)  $41,170   $57,665    (28.6)
                
Nonperforming assets to loans and other real estate owned at end of period   3.73%   4.65%   (19.8)
                
Nonperforming assets to total assets   2.09%   2.64%   (20.8)
                
Selected Financial Data               
Total assets  $2,202,049   $2,169,073    1.5 
Securities available for sale (at fair value)   649,196    574,615    13.0 
Securities held for investment (at amortized cost)   0    18,801    (100.0)
Net loans   1,202,270    1,191,937    0.9 
Deposits   1,762,164    1,737,459    1.4 
Total shareholders' equity   166,705    170,922    (2.5)
Common shareholders' equity   117,647    123,113    (4.4)
Book value per share common   1.24    1.30    (4.6)
Tangible book value per share   1.74    1.78    (2.2)
Tangible common book value per share (5)   1.23    1.28    (3.9)
Average shareholders' equity to average assets   7.50%   7.85%   (4.5)
Tangible common equity to tangible assets (5), (6)   5.29    5.58    (5.2)
                
Average Balances (Year-to-Date)               
Total assets  $2,169,329   $2,126,186    2.0 
Less: intangible assets   1,395    2,184    (36.1)
Total average tangible assets  $2,167,934   $2,124,002    2.1 
                
Total equity  $162,795   $166,874    (2.4)
Less: intangible assets   1,395    2,184    (36.1)
Total average tangible equity  $161,400   $164,690    (2.0)

 

 

 

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

n/m = not meaningful

 

 
 

 

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

 

   Three Months Ended 
   March 31, 
(Dollars in thousands, except per share data)  2013   2012 
         
Interest on securities:          
Taxable  $3,184   $4,335 
Nontaxable   18    24 
Interest and fees on loans   14,027    14,774 
Interest on federal funds sold and other investments   228    217 
Total Interest Income   17,457    19,350 
           
Interest on deposits   208    449 
Interest on time certificates   532    1,500 
Interest on borrowed money   717    759 
Total Interest Expense   1,457    2,708 
           
Net Interest Income   16,000    16,642 
Provision for loan losses   953    2,305 
Net Interest Income After Provision for Loan Losses   15,047    14,337 
           
Noninterest income:          
Service charges on deposit accounts   1,551    1,461 
Trust income   676    573 
Mortgage banking fees   1,114    623 
Brokerage commissions and fees   425    234 
Marine finance fees   272    330 
Interchange income   1,264    1,071 
Other deposit based EFT fees   98    99 
Other   531    546 
    5,931    4,937 
Securities gains, net   25    3,374 
Total Noninterest Income   5,956    8,311 
           
Noninterest expenses:          
Salaries and wages   7,470    7,055 
Employee benefits   2,223    2,010 
Outsourced data processing costs   1,498    1,721 
Telephone / data lines   285    289 
Occupancy   1,755    1,882 
Furniture and equipment   561    495 
Marketing   449    926 
Legal and professional fees   796    1,776 
FDIC assessments   717    706 
Amortization of intangibles   195    201 
Asset dispositions expense   290    527 
Net loss on other real estate owned and repossessed assets   567    1,959 
Other   2,153    2,163 
Total Noninterest Expenses   18,959    21,710 
           
Income Before Income Taxes   2,044    938 
Provision for income taxes   0    0 
           
Net Income   2,044    938 
Preferred stock dividends and accretion on preferred stock discount   937    937 
Net Income Available to Common Shareholders  $1,107   $1 
           
Per share of common stock:          
           
Net income diluted  $0.01   $0.00 
Net income basic   0.01    0.00 
Cash dividends declared   0.00    0.00 
           
Average diluted shares outstanding   94,626,076    94,394,906 
Average basic shares outstanding   93,947,141    93,618,129 

 

 

 

 
 

 

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

 

   March 31,   December 31,   March 31, 
(Dollars in thousands, except share data)  2013   2012   2012 
             
Assets               
Cash and due from banks  $34,982   $45,620   $37,652 
Interest bearing deposits with other banks   192,069    129,367    234,382 
Total Cash and Cash Equivalents   227,051    174,987    272,034 
                
Securities:               
Available for sale (at fair value)   649,196    643,050    574,615 
Held for investment (at amortized cost)   0    13,818    18,801 
Total Securities   649,196    656,868    593,416 
                
Loans available for sale   24,206    36,021    8,214 
                
Loans, net of deferred costs   1,223,810    1,226,081    1,216,392 
Less: Allowance for loan losses   (21,540)   (22,104)   (24,455)
Net Loans   1,202,270    1,203,977    1,191,937 
                
Bank premises and equipment, net   34,620    34,465    34,151 
Other real estate owned   10,850    11,887    15,530 
Other intangible assets   1,305    1,501    2,088 
Other assets   52,551    54,223    51,703 
   $2,202,049   $2,173,929   $2,169,073 
                
Liabilities and Shareholders' Equity               
Liabilities               
Deposits               
Demand deposits (noninterest bearing)  $453,144   $422,833   $394,532 
NOW   482,913    509,371    436,712 
Savings deposits   177,213    164,956    148,068 
Money market accounts   341,216    343,915    330,409 
Other time certificates   175,934    182,495    231,060 
Brokered time certificates   10,169    8,203    7,113 
Time certificates of $100,000 or more   121,575    127,188    189,565 
Total Deposits   1,762,164    1,758,961    1,737,459 
                
Federal funds purchased and securities sold under agreements to repurchase, maturing within 30 days   161,678    136,803    149,316 
Borrowed funds   50,000    50,000    50,000 
Subordinated debt   53,610    53,610    53,610 
Other liabilities   7,892    9,009    7,766 
    2,035,344    2,008,383    1,998,151 
                
Shareholders' Equity               
Preferred stock - Series A   49,058    48,746    47,809 
Common stock   9,485    9,484    9,474 
Additional paid in capital   222,940    222,851    222,295 
Accumulated deficit   (117,504)   (118,611)   (114,151)
Treasury stock   (25)   (62)   (22)
    163,954    162,408    165,405 
Accumulated other comprehensive gain, net   2,751    3,138    5,517 
Total Shareholders' Equity   166,705    165,546    170,922 
   $2,202,049   $2,173,929   $2,169,073 
                
Common Shares Outstanding   94,850,027    94,837,170    94,717,432 

 

 

Note: The balance sheet at December 31, 2012 has been derived from the audited financial statements at that date.

 

 
 

 

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

 

   QUARTERS     
   2013   2012   Last 12 
(Dollars in thousands, except per share data)  First   Fourth   Third   Second   Months 
Net income (loss)  $2,044   $240   $447   $(2,335)  $396 
                          
Operating Ratios                         
Return on average assets-GAAP basis (2),(3)   0.38%   0.05%   0.08%   (0.44)%   0.02%
Return on average tangible assets (2),(3),(4)   0.41    0.07    0.11    (0.42)   0.04 
                          
Return on average shareholders' equity-GAAP basis (2),(3)   5.09    0.58    1.09    (5.56)   0.24 
                          
Net interest margin (1),(2)   3.15    3.22    3.17    3.17    3.17 
Average equity to average assets   7.50    7.73    7.77    7.90    7.73 
                          
Credit Analysis                         
Net charge-offs  $1,517   $2,151   $2,416   $6,275   $12,359 
Net charge-offs to average loans   0.49%   0.69%   0.79%   2.05%   1.00%
Loan loss provision  $953   $1,136   $900   $6,455   $9,444 
Allowance to loans at end of period   1.76%   1.80%   1.92%   2.02%     
                          
Restructured loans (accruing)  $41,170    41,946    44,179    54,842      
                          
Nonperforming loans  $35,208    40,955    44,450    48,482      
Other real estate owned   10,850    11,887    8,888    7,219      
Nonperforming assets  $46,058   $52,842   $53,338   $55,701      
Nonperforming assets to loans and other real estate owned at end of period   3.73%   4.27%   4.40%   4.53%     
Nonperforming assets to total assets   2.09    2.43    2.56    2.64      
Nonaccrual loans and accruing loans 90 days or more past due to loans outstanding at end of period   2.88    3.34    3.70    3.97      
                          
Per Share Common Stock                         
Net income (loss) diluted-GAAP basis  $0.01   $(0.01)  $(0.01)  $(0.03)  $(0.04)
Net income (loss) basic-GAAP basis   0.01    (0.01)   (0.01)   (0.03)  $(0.04)
                          
Cash dividends declared   0.00    0.00    0.00    0.00    0.00 
Book value per share common   1.24    1.23    1.25    1.24      
                          
Average Balances                         
Total assets  $2,169,329   $2,111,986   $2,096,694   $2,133,713      
Less: Intangible assets   1,395    1,596    1,793    1,988      
Total average tangible assets  $2,167,934   $2,110,390   $2,094,901   $2,131,725      
                          
Total equity  $162,795   $163,341   $162,902   $168,457      
Less: Intangible assets   1,395    1,596    1,793    1,988      
Total average tangible equity  $161,400   $161,745   $161,109   $166,469      

 

 

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

 

   March 31,   December 31,   March 31, 
SECURITIES  2013   2012   2012 
             
U.S. Treasury and U.S. Government Agencies  $1,202   $1,707   $1,718 
Mortgage-backed   638,571    640,445    571,738 
Obligations of states and political subdivisions   7,885    898    1,159 
Other securities   1,538    0    0 
Securities Available for Sale   649,196    643,050    574,615 
                
Mortgage-backed   0    5,965    10,640 
Obligations of states and political subdivisions   0    6,353    6,661 
Other securities   0    1,500    1,500 
Securities Held for Investment (1)   0    13,818    18,801 
Total Securities  $649,196   $656,868   $593,416 

 

 

(1)Securities Held for Investment were transferred to Securities Available for Sale for more options to manage interest rate risk prospectively.

 

   March 31,   December 31,   March 31, 
LOANS  2013   2012   2012 
Construction and land development  $62,851   $60,736   $54,018 
Real estate mortgage   1,052,766    1,056,159    1,056,823 
Installment loans to individuals   43,248    46,930    50,789 
Commercial and financial   64,752    61,903    54,561 
Other loans   193    353    201 
Total Loans  $1,223,810   $1,226,081   $1,216,392 

 

 

 

 
 

 

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

 

   2013   2012 
   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  $646,184    1.97%  $604,412    2.07%  $620,666    2.79%
Nontaxable   1,666    6.37    1,670    4.31    2,223    6.48 
Total Securities   647,850    1.98    606,082    2.08    622,889    2.81 
                               
Federal funds sold and other investments   172,505    0.54    162,599    0.55    179,337    0.49 
                               
Loans,  net   1,247,666    4.57    1,241,711    4.64    1,213,796    4.91 
                               
Total Earning Assets   2,068,021    3.43    2,010,392    3.53    2,016,022    3.87 
                               
Allowance for loan losses   (22,018)        (23,820)        (25,104)     
Cash and due from banks   34,706         39,321         36,513      
Premises and equipment   34,516         34,566         34,237      
Other assets   54,104         51,527         64,518      
                               
   $2,169,329        $2,111,986        $2,126,186      
                               
Liabilities and Shareholders' Equity                              
Interest-bearing liabilities:                              
NOW (2)  $474,915    0.10%  $449,476    0.11%  $432,515    0.17%
Savings deposits   170,502    0.06    161,156    0.09    140,941    0.11 
Money market accounts (2)   341,833    0.08    346,089    0.13    327,071    0.28 
Time deposits   311,945    0.69    330,556    0.72    443,538    1.36 
Federal funds purchased and other short term borrowings   160,600    0.21    131,628    0.23    147,413    0.23 
Other borrowings   103,610    2.48    103,610    2.50    103,610    2.61 
                               
Total Interest-Bearing Liabilities   1,563,405    0.38    1,522,515    0.42    1,595,088    0.68 
                               
Demand deposits (noninterest-bearing)   433,757         416,482         355,362      
Other liabilities   9,372         9,648         8,862      
Total Liabilities   2,006,534         1,948,645         1,959,313      
                               
Shareholders' equity   162,795         163,341         166,874      
                               
   $2,169,329        $2,111,986        $2,126,186      
                               
Interest expense as a % of earning assets        0.29%        0.32%        0.54%
Net interest income as a % of earning assets        3.15         3.22         3.33 

 

 

(1)On a fully taxable equivalent basis. All yields and rates have been computed on an annualized basis using amortized cost. Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.

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

 

 
 

 

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

 

   2013   2012 
(Dollars in thousands)  First Quarter   Fourth Quarter   Third Quarter   Second Quarter   First Quarter 
                     
Customer Relationship Funding (Period End)                         
Demand deposits (noninterest bearing)  $453,144   $422,833   $409,145   $393,681   $394,532 
NOW accounts   482,913    509,371    420,477    420,449    436,712 
Money market accounts   341,216    343,915    348,275    346,191    330,409 
Savings accounts   177,213    164,956    158,208    156,019    148,068 
Time certificates of deposit   307,678    317,886    343,361    373,244    427,738 
Total Deposits   1,762,164    1,758,961    1,679,466    1,689,584    1,737,459 
                          
Sweep repurchase agreements   161,678    136,803    122,393    139,489    149,316 
Total core customer funding (1)   1,616,164    1,577,878    1,458,498    1,455,829    1,459,037 

 

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

 

 
 

 

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

 

   2012   2013 
   1st Qtr   2nd Qtr   3rd Qtr   4th Qtr   1st Qtr 
Construction and land development                         
Residential                         
Condominiums  $-   $-   $-   $-   $- 
Townhomes   -    -    -    -    - 
Single family residences   -    -    -    -    - 
Single family land and lots   6.0    5.9    5.8    5.6    4.9 
Multifamily   4.9    4.7    4.6    4.3    3.9 
    10.9    10.6    10.4    9.9    8.8 
Commercial                         
Office buildings   0.3    -    -    -    1.1 
Retail trade   -    -    -    -    - 
Land   9.2    10.7    9.8    9.6    11.0 
Industrial   -    -    -    -    - 
Healthcare   -    -    -    1.8    3.3 
Churches and educational facilities   0.3    0.3    0.7    0.5    1.2 
Lodging   -    -    -    -    - 
Convenience stores   1.4    1.4    -    -    - 
Marina   -    -    -    -    - 
Other   -    -    -    -    - 
    11.2    12.4    10.5    11.9    16.6 
Individuals                         
Lot loans   18.4    17.6    16.4    16.7    16.6 
Construction   13.5    16.6    18.9    22.2    20.8 
    31.9    34.2    35.3    38.9    37.4 
Total construction and land development   54.0    57.2    56.2    60.7    62.8 
                          
Real estate mortgages                         
Residential real estate                         
Adjustable   341.6    359.4    353.7    361.0    365.8 
Fixed rate   96.2    95.4    99.7    99.0    98.2 
Home equity mortgages   59.5    58.3    58.4    58.0    61.3 
Home equity lines   53.0    50.8    50.6    51.4    49.3 
    550.3    563.9    562.4    569.4    574.6 
Commercial real estate                         
Office buildings   118.0    113.4    102.4    104.7    104.2 
Retail trade   139.3    128.5    121.1    126.7    122.2 
Industrial   70.0    72.0    71.3    72.6    73.4 
Healthcare   40.2    42.0    35.8    40.7    39.4 
Churches and educational facilities   27.0    26.7    26.2    28.6    26.9 
Recreation   3.1    3.1    2.7    2.7    2.6 
Multifamily   8.8    8.3    7.8    9.0    8.5 
Mobile home parks   2.1    2.1    2.1    2.0    2.0 
Lodging   19.4    19.3    19.1    18.7    18.0 
Restaurant   4.6    4.7    4.4    3.5    8.7 
Agricultural   7.6    7.4    7.3    6.1    5.9 
Convenience stores   15.5    15.4    16.6    20.5    20.2 
Marina   21.6    21.5    21.4    21.2    21.1 
Other   29.3    29.3    35.6    29.8    25.1 
    506.5    493.7    473.8    486.8    478.2 
Total real estate mortgages   1,056.8    1,057.6    1,036.2    1,056.2    1,052.8 
                          
Commercial & financial   54.6    56.2    58.2    61.9    64.8 
                          
Installment loans to individuals                         
Automobile and trucks   8.2    8.1    8.0    7.8    7.8 
Marine loans   21.1    20.8    23.0    18.4    15.4 
Other   21.5    21.3    20.6    20.7    20.0 
    50.8    50.2    51.6    46.9    43.2 
                          
Other   0.2    0.2    0.3    0.4    0.2 
    1,216.4    1,221.4    1,202.5    1,226.1    1,223.8 

 

 
 

 

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

 

   2012   2013 
   1st Qtr   2nd Qtr   3rd Qtr   4th Qtr   1st Qtr 
Construction and land development                         
Residential                         
Condominiums  $-   $-   $-   $-   $- 
Townhomes   -    -    -    -    - 
Single family residences   -    -    -    -    - 
Single family land and lots   (0.2)   (0.1)   (0.1)   (0.2)   (0.7)
Multifamily   (0.2)   (0.2)   (0.1)   (0.3)   (0.4)
    (0.4)   (0.3)   (0.2)   (0.5)   (1.1)
Commercial                         
Office buildings   0.1    (0.3)   -    -    1.1 
Retail trade   -    -    -    -    - 
Land   (0.1)   1.5    (0.9)   (0.2)   1.4 
Industrial   -    -    -    -    - 
Healthcare   -    -    -    1.8    1.5 
Churches and educational facilities   0.2    -    0.4    (0.2)   0.7 
Lodging   -    -    -    -    - 
Convenience stores   (0.3)   -    (1.4)   -    - 
Marina   -    -    -    -    - 
Other   -    -    -    -    - 
    (0.1)   1.2    (1.9)   1.4    4.7 
Individuals                         
Lot loans   0.5    (0.8)   (1.2)   0.3    (0.1)
Construction   4.8    3.1    2.3    3.3    (1.4)
    5.3    2.3    1.1    3.6    (1.5)
Total construction and land development   4.8    3.2    (1.0)   4.5    2.1 
                          
Real estate mortgages                         
Residential real estate                         
Adjustable   7.5    17.8    (5.7)   7.3    4.8 
Fixed rate   (0.8)   (0.8)   4.3    (0.7)   (0.8)
Home equity mortgages   (0.7)   (1.2)   0.1    (0.4)   3.3 
Home equity lines   (1.9)   (2.2)   (0.2)   0.8    (2.1)
    4.1    13.6    (1.5)   7.0    5.2 
Commercial real estate                         
Office buildings   (1.6)   (4.6)   (11.0)   2.3    (0.5)
Retail trade   (1.3)   (10.8)   (7.4)   5.6    (4.5)
Industrial   (0.7)   2.0    (0.7)   1.3    0.8 
Healthcare   1.4    1.8    (6.2)   4.9    (1.3)
Churches and educational facilities   (0.4)   (0.3)   (0.5)   2.4    (1.7)
Recreation   (0.1)   -    (0.4)   -    (0.1)
Multifamily   (0.6)   (0.5)   (0.5)   1.2    (0.5)
Mobile home parks   (0.1)   -    -    (0.1)   - 
Lodging   (0.2)   (0.1)   (0.2)   (0.4)   (0.7)
Restaurant   (0.1)   0.1    (0.3)   (0.9)   5.2 
Agricultural   (1.2)   (0.2)   (0.1)   (1.2)   (0.2)
Convenience stores   0.4    (0.1)   1.2    3.9    (0.3)
Marina   0.3    (0.1)   (0.1)   (0.2)   (0.1)
Other   2.3    -    6.3    (5.8)   (4.7)
    (1.9)   (12.8)   (19.9)   13.0    (8.6)
Total real estate mortgages   2.2    0.8    (21.4)   20.0    (3.4)
                          
Commercial & financial   1.5    1.6    2.0    3.7    2.9 
                          
Installment loans to individuals                         
Automobile and trucks   (0.5)   (0.1)   (0.1)   (0.2)   - 
Marine loans   1.2    (0.3)   2.2    (4.6)   (3.0)
Other   (0.5)   (0.2)   (0.7)   0.1    (0.7)
    0.2    (0.6)   1.4    (4.7)   (3.7)
                          
Other   (0.4)   -    0.1    0.1    (0.2)
   $8.3   $5.0   $(18.9)  $23.6   $(2.3)