EX-99.1 2 v438825_ex99-1.htm EXHIBIT 99.1

EXHIBIT 99.1

To Form 8-K dated April 28, 2016

SEACOAST BANKING CORPORATION OF FLORIDA

NEWS RELEASE

Stephen Fowle

Executive Vice President

Chief Financial Officer

(772) 463-8977

Steve.fowle@seacoastbank.com

Seacoast Banking Reports First Quarter 2016 Results

Posts First Quarter Adjusted EPS of $0.19, Led by 4% Annualized Organic Household Growth, Increased Revenues, and Recent Acquisition Activity

First Quarter 2016 Earnings Highlights

Adjusted revenues¹ increased $5.9 million, or 18% year-over-year, to $38.9 million; and increased $2.0 million, or 5% (not annualized), from fourth quarter 2015 levels.

Net interest income improved $4.5 million, or 18% year-over-year, as organic loan growth was supplemented by successful acquisitions.

Net interest margin increased year-over-year and sequentially to 3.68%.

Adjusted net income¹ increased 10% to $6.8 million compared to $6.2 million in the first quarter 2015.

First Quarter 2016 Growth Highlights

Integration of Floridian Financial Group, Inc. was successfully completed during March, 2016, adding 3,400 households and locations in the Orlando and Daytona Beach markets.

Seacoast continues to leverage organic growth capabilities in acquired franchises. BankFirst and Grand continue to show strong annualized growth of 7%, surpassing solid 4% growth rate for Seacoast’s legacy franchise.

Core deposit growth continues to accelerate. Demand deposits grew 14% (not annualized) during the quarter, 7% excluding acquired deposits. Demand deposits represent more than 56% of total deposits and non-interest bearing checking accounts now comprise nearly 33% of deposits.

2016 Guidance

Seacoast reaffirms 2016 adjusted diluted EPS target of $1.00.

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

STUART, Fla., April 28, 2016 /PRNewswire/ — Seacoast Banking Corporation of Florida (“Seacoast” or “the Company”) (NASDAQ: SBCF) today reported results for the first quarter of 2016.

Seacoast reported first quarter net income of $3.2 million, compared to $5.9 million in the first quarter last year. During the period, Seacoast closed the previously announced acquisition of Floridian Financial Group, Inc. and results for the quarter include $5.5 million in charges taken in conjunction with the acquisition. Adjusted net income, including adjustments for Floridian expenses and other non-core items¹ increased $605,000 to $6.8 million, a 10% increase from year-ago levels, and increased $262,000, or 4% (not annualized), from the prior quarter. Diluted earnings per common share (EPS) were $0.09 and adjusted diluted EPS¹ were $0.19, unchanged compared to the first quarter last year and the prior quarter.

Dennis S. Hudson, III, Chairman and CEO said, “Our first quarter results demonstrate the impact of our digital transformation strategy, successful integration of recent acquisitions and disciplined loan growth. While our earnings were close to our expectations for the quarter, they do not fully reflect the profitability we expect over the balance of this year. The near-term drivers for our anticipated improved earnings are cost reductions, primarily related to branch consolidations, as well as revenue improvement resulting from these acquisitions and continued strong organic growth.

We expect to achieve a substantial portion of the cost savings from the integration of Floridian Bank and previously announced legacy branch consolidations during the second quarter. The remaining cost savings from Floridian and substantially all of the synergies related to the BMO Harris integration will be realized during the third quarter. These in-market acquisitions, together with organic and acquisition-related revenue growth, are expected to drive substantial earnings improvements throughout the balance of the year.

At year end we anticipate that Seacoast’s average deposits per branch network-wide will have increased to almost $80 million compared to $65 million at year end 2015. This improvement in efficiency will be enabled, in part, by our ongoing digital transformation and is a meaningful part of our path to achieving our earnings target for 2016.

We will continue to implement our digital strategy, which is enabling us to add new households, both organically and in our recently acquired banks; driving cross sells of services to existing customers; and transforming our business model, by providing us with opportunities to reduce our more-expensive legacy cost structure. Improvements this quarter include an increase in deposits made outside the branch to 31%, compared to 23% in the first quarter of 2015; an increase in consumer loans opened outside the branch to 19%, compared to 13% during the first quarter last year; and an increase in new deposit accounts opened outside the branch to 12%, compared to 5% in last year’s first quarter. Customer satisfaction continued at high levels, showing our ability to move customers to lower-cost distribution channels while further building customer engagement,” Hudson said.

Hudson added, “We believe that continued execution of Seacoast’s strategy, including investing in important initiatives, reducing expenses and executing on the right acquisition opportunities, will continue to produce improved results for shareholders. We have affirmed our adjusted diluted earnings per share¹ target of $1.00 for 2016.”

FINANCIAL HIGHLIGHTS (Dollars in thousands except per share data)	1Q16			4Q15			3Q15			2Q15			1Q15

Total Assets	$	4,000,543		$	3,534,780		$	3,378,108		$	3,233,588		$	3,231,956

Loans		2,455,214			2,156,330			2,099,447			1,937,399			1,854,487

Deposits		3,222,447			2,844,387			2,742,296			2,605,177			2,609,825

Net Income		3,186			6,036			4,441			5,805			5,859

Diluted Earnings Per Share		0.09			0.18			0.13			0.18			0.18

Return on Average Assets (ROA)		0.36	%		0.69	%		0.52	%		0.72	%		0.75	%
Return on Average Tangible Common Equity (ROTCE)		4.2			7.8			5.9			8.2			8.5

Net Interest Margin		3.68			3.67			3.75			3.50			3.62
Efficiency Ratio		85.0			72.6			76.3			68.6			68.3

Pretax, Pre-provision Income (1)	$	5,331		$	10,130		$	8,126		$	10,224		$	9,832
Average Diluted Shares Outstanding (000)		35,453			34,395			34,194			33,234			33,136
Adjusted Net Income (1)	$	6,782		$	6,520		$	6,433		$	6,172		$	6,177
Adjusted Diluted Earnings Per Share (1)		0.19			0.19			0.19			0.19			0.19

Adjusted ROA (1)		0.76	%		0.75	%		0.76	%		0.77	%		0.79	%
Adjusted ROTCE (1)		8.5			8.4			8.5			8.7			9.0

Adjusted Efficiency Ratio (1)		69.9			69.1			68.2			67.5			67.5
Adjusted Pretax, Pre-provision Income (1)	$	11,120		$	10,913		$	11,328		$	10,815		$	10,342

Annualized Adjusted Operating Expenses as a Percent of Average Assets (1)		3.08	%		2.93	%		3.03	%		2.91	%		2.88	%

Acquisitions Update

Hudson noted, “We are pleased to have completed our acquisition and flawless conversion of Floridian late in the first quarter. We now look forward to serving our new customers and expanded communities as we execute on savings opportunities, eliminating redundant functions and consolidating branch locations over the next six months. Our customer service model, combining convenience with customer analytics technology, has enabled us to drive accelerated levels of cross sell and revenue while growing households at an even faster rate in our acquired markets.

“Our success in Orlando and Palm Beach counties, where we acquired BankFirst and Grand Bank, continues,” Hudson stated. “Household growth remains very strong and cross sell statistics outpace growth in our legacy markets. Banking services for Grand and BankFirst customers increased at a 20% annualized rate compared to an 11% rate in our legacy franchise.

“As we welcome the new customers from Floridian, we look forward to completing our acquisition of BMO Harris’ Orlando banking operations and welcoming more than 8,000 customers late in the second quarter of this year, subject to customary closing conditions. This acquisition will further solidify our status in Orlando, propelling us to a top-10 position in this market,” Hudson concluded.

Florida Economic Update

"The strong Florida economy continues to amplify our success," said Hudson. “Florida’s first quarter job growth, as reported by ADP, continues to outpace the nation. Florida’s job growth rate in the first quarter exceeded national growth rate by 50% (with Florida growing 3% vs. a 2% national rate), continuing recent strength in Florida job creation.”

“Additionally, the Comerica Florida Economic Activity Index increased for the 22nd consecutive month in January. Almost all of the index components were positive for the month, indicating broad-based gains in the state economy. Only hotel occupancy dipped in January. The state economy is clearly accelerating and we expect to see ongoing growth for Florida over the remainder of this year…House prices and house construction are firming up. The state is also seeing increased net migration as baby boomer retirement increases. A recent Census Bureau report shows Florida metro areas among the fastest growing in the U.S.”

First Quarter 2016 Income Statement Highlights

Organic Growth Drives Net Interest Income Increases, Merger Activity Portends Further Gains

Net interest income for the quarter totaled $30.3 million, a $4.5 million or 18% increase from first quarter 2015 levels. Net interest margin expanded to 3.68%, a six basis point increase from the prior year. Year-over-year net interest income and margin increases reflect successful organic growth combined with improved balance sheet mix. Acquisition activity also contributed to net interest income gains as Seacoast welcomed customers from Floridian and continued to grow relationships with customers of other recent acquisitions. These factors more than offset a decrease in excess purchased loan fee accretion recorded in the first quarter 2015 (approximately 9-10 basis points of excess margin).

Net interest income increased $1.1 million and net interest margin increased one basis point, from 3.67% in the prior quarter. The improvement was built through continued growth and improved balance sheet mix, and offset the negative impact of a shorter number of days in the quarter. Each day impacts net interest income by approximately $340,000.

Noninterest Income Growth Driven by Franchise Growth

Noninterest income excluding securities gains, totaled $8.6 million for the first quarter of 2016. Included in this figure is $464,000 in unanticipated non-taxable income related to the Bank’s investment in bank owned life insurance (BOLI). Excluding securities gains and unanticipated BOLI income, adjusted noninterest income¹ was $8.2 million for the first quarter, an increase of $859,000 or 12% from the first quarter 2015. Strong increases in interchange income and deposit service charges, up 28% and 6%, respectively, reflect intentional customer analytics-driven cross sell combined with strong household growth and customer engagement. Analytics enabled cross sell has driven the number of households with debit cards from no growth in 2013 to more than 16% growth last year, excluding acquisitions. Increases in trust and brokerage businesses offset decreases in marine and mortgage banking revenues.

Adjusted noninterest income increased $385,000 or 5% (not annualized) from fourth quarter 2015 levels. Strength in interchange and trust and brokerage income contributed to this linked-quarter gain.

Noninterest Expense Reflects Merger Activity and Other Investment in Seacoast Strategy

Noninterest expense increased $10.4 million from the first quarter of 2015, largely driven by $5.5 million in expense related to the acquisition of Floridian on March 11, 2016. Adjusted noninterest expense¹ increased $4.4 million from prior-year levels. The year-over-year increase in adjusted expense reflects ongoing costs related to the 2015 acquisitions of FGC and Grand Bankshares. Additionally, expenses reflect support of organic growth of and investment in the franchise. Larger drivers include added salary and benefits related to additional headcount, largely from acquisition activity, decreased deferred loan origination costs and increased incentives.

Noninterest expense increased $6.4 million from the fourth quarter, 2015. Excluding merger related charges and other one-time items, adjusted noninterest expense¹ grew $1.3 million. Increased salary and benefit costs ($1.4 million) were primarily related to the negative impact of typical first quarter seasonality, such as higher employer 401(k) matching costs, incentive-related costs and certain employer-paid taxes; as well as to decreased deferred origination costs.

Adjustments to expenses for the first quarter 2016 relate largely to the Floridian acquisition ($5.5 million) including plans to consolidate five locations over the next two quarters. This acquisition will provide an IRR of near 20% or above and is immediately accretive to EPS, excluding transaction costs. One time charges were also taken for the planned closing of four legacy Seacoast branches in slower-growth, central Florida ($0.7 million) which is expected to result in annual savings of approximately $1 million.

First Quarter 2016 Balance Sheet Highlights

Strong Originations and Acquisition Activity Continue Loan Portfolio Build

Total loans were $2.46 billion at March 31, 2016, an increase of $601 million or 32% from a year ago. Excluding acquired loans, loans increased $208 million or 11% from the prior year’s first quarter. Loans increased $299 million or 14% (not annualized) from fourth quarter levels. Adjusted for the acquisition, loans increased $23 million or 1.9% from prior quarter levels, reflecting strong originations offset by sizable levels of pay downs during the first quarter.

Despite a seasonally slow quarter, loan production continued a strong pace across all business lines. Commercial loan originations for the quarter exceeded $67 million with the commercial pipeline (in underwriting and approval or approved and not yet closed) totaling $98 million at March 31, 2016, ahead of prior-year levels. Consumer loan and small business originations (inclusive of lines of credit) totaled $53 million in the first quarter of 2016 compared to $39 million one year ago.

Closed residential production for the quarter totaled $67 million compared with $56 million during the first quarter 2015, with a total residential pipeline of $58 million at March 31, 2016 up from $49 million one year ago.

(Dollars in thousands)	1Q16		4Q15		3Q15		2Q15		1Q15

Commercial pipeline	$	97,953	$	105,556	$	104,915	$	108,538	$	82,143
Commercial loans closed		67,252		80,003		71,823		85,815		61,357
Total Commercial loan originations and pipeline	$	165,205	$	185,559	$	176,738	$	194,353	$	143,500

Residential pipeline	$	57,739	$	30,340	$	37,958	$	53,902	$	48,485
Residential loans retained		36,335		24,905		36,027		45,596		23,951
Residential loans sold		30,345		35,278		37,996		36,182		31,896
Total Residential loan originations and pipeline	$	124,419	$	90,523	$	111,981	$	135,680	$	104,332

Credit Quality Remains Stable and Strong

The provision for loan losses was $199,000 for the first quarter of 2016, down from $433,000 in the first quarter 2015 and $369,000 recorded in the fourth quarter 2015. The decrease in provision was driven by strong credit metrics, including $397,000 in net recoveries collected during the quarter, partially offsetting the impact of continued loan growth. The ratio of allowance for loan losses to non-acquired loans rose to 1.04% as of March 31 2016, as slight increase from 1.03% as of December 31, 2015.

Additional highlights include:

Nonperforming loans to total loans outstanding at the end of the first quarter decreased to 0.63%, down from 1.14% as of March 31, 2015;

Nonperforming assets to total assets also declined to 0.59%, compared to 0.84% one year ago.

Deposits Built on Core Customer Growth and Acquired Deposits and Reflect Seasonal Public Funds Trends

Total deposits increased 23% to $3.22 billion at March 31, 2016, from year ago levels. Core customer funding increased to $3.06 billion at March 31, 2016, a $590 million, or 24% increase from the first quarter of 2015. Excluding acquisitions, core customer funding increased by $176 million or 7% from one year ago and total deposits increased $100 million or 4% from one year ago. Total deposits grew $378 million or 13% (not annualized) and core customer funding increased $336 million or 12% (not annualized) compared to the prior quarter. Excluding acquired deposits, total deposits increased $54 million or 2% (not annualized) from fourth quarter levels. First quarter 2016 deposit growth is impacted by a reduced focus on, and seasonal decreases in public fund balances, which decreased by $74 million during the quarter.

Noninterest demand deposits grew $200 million or 23% from the fourth quarter of 2015 and $261 million or 33% from the first quarter of 2105. Excluding acquired deposits, noninterest demand deposits increased $112 million, or 13% from the fourth quarter 2015. Noninterest demand deposits increased to a strong 33% of total deposits.

(Dollars in thousands)	First Quarter 2016			Fourth Quarter 2015			Third Quarter 2015			Second Quarter 2015			First Quarter 2015
Customer Relationship Funding
Noninterest demand	$	1,054,069		$	854,447		$	869,877		$	808,429		$	793,336
Interest-bearing demand		750,904			734,749			618,344			599,268			634,854
Money market		741,657			665,353			660,632			621,973			596,600
Savings		313,179			295,851			286,810			282,588			272,963
Time certificates of deposit		362,638			293,987			306,633			292,919			312,072
Total deposits	$	3,222,447		$	2,844,387		$	2,742,296		$	2,605,177		$	2,609,825
Customer sweep accounts	$	198,330		$	172,005		$	148,607		$	157,676		$	170,023
Total core customer funding (2)	$	3,058,139		$	2,722,405		$	2,584,270		$	2,469,934		$	2,467,776
Demand deposit mix (noninterest bearing)		32.7	%		30.0	%		31.7	%		31.0	%		30.4	%

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

Other Highlights

Capital Ratios Remain Strong

Capital ratios remain healthy and well above regulatory requirements for well-capitalized institutions. The common equity tier 1 capital ratio (CET1) is estimated at 12.0% and the total capital ratio is estimated at 14.6% at March 31, 2016. The tier 1 leverage ratio is estimated at 10.9% at March 31, 2016. Ratios are down slightly as earnings during the first quarter were offset by merger activity.

Tangible book value per share increased $0.41 to $9.15 while book value per share increased $1.18 to $10.89 compared to the first quarter of 2015. Average tangible common equity to assets was a strong 9.4% at March 31, 2016.

Conference Call Information

Seacoast will host a conference call on Friday, April 29, 2016 at 10:00 a.m. (Eastern Time) to discuss the earnings results. Investors may call in (toll-free) by dialing (800) 697-5978 (passcode: 7908 524). Slides will be used during the conference call and may be accessed at Seacoast's website at SeacoastBanking.com by selecting "Presentations" under the heading "Investor Services." A replay of the call will be available for one month, beginning late afternoon of April 29, by dialing (888) 843-7419 and using passcode: 7908 524.

Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast's website at SeacoastBanking.com. The link is located in the subsection "Presentations" under the heading "Investor Services." Beginning the afternoon of April 29, an archived version of the webcast can be accessed from this same subsection of the website. The archived webcast will be available for one year.

About Seacoast Banking Corporation of Florida (NASDAQ: SBCF)

Seacoast Banking Corporation of Florida is one of the largest community banks headquartered in Florida with approximately $4.0 billion in assets and $3.2 billion in deposits as of March 31, 2016. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, 53 traditional branches of its locally-branded wholly-owned subsidiary bank, Seacoast Bank, and five commercial banking centers. Offices stretch from Ft. Lauderdale, Boca Raton and West Palm Beach north through the Daytona Beach area, into Orlando and Central Florida, and west to Okeechobee and surrounding counties. More information about the Company is available at SeacoastBanking.com.

Sources:

http://blog.comerica.com/2016/03/29/comerica-banks-florida-index-sees-broad-based-gains/

http://www.adpemploymentreport.com

Cautionary Notice Regarding Forward-Looking Statements

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

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

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

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2015, under "Special Cautionary Notice Regarding Forward-looking Statements" and "Risk Factors", and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov.

Explanation of Certain Unaudited Non-GAAP Financial Measures

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

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

	First Quarter		Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Dollars in thousands except per share data)	2016		2015		2015		2015		2015

Net income (loss)	$	3,186	$	6,036	$	4,441	$	5,805	$	5,859
Severance		306		187		98		29		12
Merger related charges		5,307		1,043		2,692		337		275
Bargain purchase gain		0		-416		0		0		0
Branch closure charges and costs related to expense initiatives		691		0		0		0		0
Other		0		0		121		0		0
Security (gains)		-89		-1		-160		0		0
Miscellaneous losses		0		48		112		0		0
Net loss on OREO and repossessed assets		-51		-157		262		53		81
Asset dispositions expense		90		79		77		173		143
Boli Income		-464		0		0		0		0
Effective tax rate on adjustments		-2,194		-299		-1,210		-225		-193
Adjusted Net Income (1)		6,782		6,520		6,433		6,172		6,177
Provision for loan losses		199		369		987		855		433
Income taxes		4,139		4,024		3,908		3,788		3,732
Adjusted pretax, pre-provision income (1)	$	11,120	$	10,913	$	11,328	$	10,815	$	10,342
Adjusted earnings per diluted share (1)	$	0.19	$	0.19	$	0.19	$	0.19	$	0.19
Average shares outstanding (000)		35,453		34,395		34,194		33,234		33,136

FINANCIAL HIGHLIGHTS				(Unaudited)			05/03/16
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

(Dollars in thousands, except share data)	Three Months Ended
	March 31,			December 31,			March 31,
	2016			2015			2015
Summary of Earnings
Net income	$	3,186		$	6,036		$	5,859
Net interest income (1)		30,349			29,216			25,834
Net interest margin (1), (2)		3.68			3.67			3.62

Performance Ratios
Return on average assets-GAAP basis (2), (3)		0.36	%		0.69	%		0.75	%
Return on average shareholders' equity-GAAP basis (2), (3)		3.46			6.78			7.42
Return on average tangible shareholders' equity-GAAP basis (2), (3), (4)		4.19			7.83			8.51
Efficiency ratio (5)		84.98			72.57			68.33
Noninterest income to total revenue		22.21			21.10			22.13

Per Share Data
Net income diluted-GAAP basis	$	0.09		$	0.18		$	0.18
Net income basic-GAAP basis		0.09			0.18			0.18
Book value per share common		10.89			10.29			9.71
Tangible book value per share		9.15			9.31			8.74
Cash dividends declared		0.00			0.00			0.00

(1)

Calculated on a fully taxable equivalent basis using amortized cost.

(2)

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

(3)

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

(4)

The Company defines tangible common equity as total shareholder's equity less intangible assets.

(5)

Defined as (noninterest expense less foreclosed property expense and amortization of intangibles) divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains and bargain purchase gain, net).

FINANCIAL HIGHLIGHTS
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	March 31,			December 31,			March 31,
(Dollars in thousands, except share data)	2016			2015			2015

Selected Financial Data
Total assets	$	4,000,543		$	3,534,780		$	3,231,956
Securities available for sale (at fair value)		905,182			790,766			730,232
Securities held for investment (at amortized cost)		198,231			203,525			223,061
Net loans		2,435,490			2,137,202			1,836,766
Deposits		3,222,447			2,844,387			2,609,825
Total shareholders' equity		413,008			353,453			321,844

Average Balances (Year-to-Date)
Total average assets	$	3,601,381		$	3,304,397		$	3,151,132
Less: intangible assets		37,006			33,277			31,221
Total average tangible assets	$	3,564,375		$	3,271,120		$	3,119,911

Total average equity	$	370,816		$	337,367		$	320,346
Less: intangible assets		37,006			33,277			31,221
Total average tangible equity	$	333,810		$	304,090		$	289,125

Credit Analysis
Net (recoveries) year-to-date - non-acquired loans	$	(539	)	$	(609	)	$	(263	)
Net charge-offs year-to-date - acquired loans		142			1,196			46
Total net charge-offs (recoveries) year-to-date	$	(397	)	$	587		$	(217	)

Net (recoveries) to average loans (annualized) - non-acquired loans		(0.10	)%		(0.03	)%		(0.06	)%
Net charge-offs to average loans (annualized) - acquired loans		0.03			0.06			0.01
Total net charge-offs (recoveries) to average loans (annualized)		(0.07	)		0.03			(0.05	)

Loan loss provision (recapture) year-to-date - non-acquired loans	$	(20	)	$	1,375		$	292
Loan loss provision year-to-date - acquired loans		219			1,269			141
Total loan loss provision year-to-date	$	199		$	2,644		$	433

Allowance to loans at end of period - non-acquired loans		1.04	%		1.03	%		1.13	%
Discount for credit losses to acquired loans at end of period		3.79			4.24			3.56

Nonperforming loans - non-acquired loans	$	11,881		$	12,758		$	16,860
Nonperforming loans - acquired loans		3,707			4,628			4,196
Other real estate owned - non-acquired		5,676			3,699			4,738
Other real estate owned - acquired		2,415			3,340			1,431
Total nonperforming assets	$	23,679		$	24,425		$	27,225

Restructured loans (accruing)	$	19,956		$	19,970		$	23,847

Purchased noncredit impaired loans	$	558,262		$	320,349		$	293,124
Purchased credit impaired loans		16,531			12,109			7,119
Total acquired loans	$	574,793		$	332,458		$	300,243

Nonperforming loans to loans at end of period - non-acquired loans		0.48	%		0.59	%		0.91	%
Nonperforming loans to loans at end of period - acquired loans		0.15			0.22			0.23
Total nonperforming loans to loans at end of period		0.63			0.81			1.14

Nonperforming assets to total assets - non-acquired		0.44	%		0.47	%		0.67	%
Nonperforming assets to total assets - acquired		0.15			0.22			0.17
Total nonperforming assets to total assets		0.59			0.69			0.84

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)	2016			2015

Interest on securities:
Taxable	$	5,683		$	4,898
Nontaxable		164			150
Interest and fees on loans		26,034			22,021
Interest on federal funds sold and other investments		290			249
Total Interest Income		32,171			27,318

Interest on deposits		604			401
Interest on time certificates		313			347
Interest on borrowed money		1,032			860
Total Interest Expense		1,949			1,608

Net Interest Income		30,222			25,710
Provision for loan losses		199			433
Net Interest Income After Provision for Loan Losses		30,023			25,277

Noninterest income:
Service charges on deposit accounts		2,129			2,002
Trust fees		806			801
Mortgage banking fees		999			1,088
Brokerage commissions and fees		631			441
Marine finance fees		141			197
Interchange income		2,217			1,737
Other deposit based EFT fees		127			114
BOLI income		841			330
Other		739			598
		8,630			7,308
Securities gains, net		89			0
Total Noninterest Income		8,719			7,308

Noninterest expenses:
Salaries and wages		14,668			8,789
Employee benefits		2,482			2,415
Outsourced data processing costs		4,439			2,184
Telephone / data lines		528			496
Occupancy		2,972			2,023
Furniture and equipment		998			732
Marketing		1,049			975
Legal and professional fees		2,357			1,663
FDIC assessments		544			589
Amortization of intangibles		446			315
Asset dispositions expense		90			143
Net (gain)/loss on other real estate owned and repossessed assets		(51	)		81
Other		3,088			2,781
Total Noninterest Expenses		33,610			23,186

Income Before Income Taxes		5,132			9,399
Income taxes		1,946			3,540

Net Income	$	3,186		$	5,859

Per share of common stock:

Net income diluted	$	0.09		$	0.18
Net income basic		0.09			0.18
Cash dividends declared		0.00			0.00

Average diluted shares outstanding		35,452,968			33,135,618
Average basic shares outstanding		34,848,875			32,971,444

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

	QUARTER
	2016			2015
(Dollars in thousands)	First			Fourth			Third		Second		First

Interest on securities:
Taxable	$	5,683		$	5,312		$	5,154	$	4,977	$	4,898
Nontaxable		164			144			144		147		150
Interest and fees on loans		26,034			25,184			25,276		21,988		22,021
Interest on federal funds sold and other investments		290			275			249		249		249
Total Interest Income		32,171			30,915			30,823		27,361		27,318

Interest on deposits		604			598			562		524		401
Interest on time certificates		313			265			295		321		347
Interest on borrowed money		1,032			952			955		850		860
Total Interest Expense		1,949			1,815			1,812		1,695		1,608

Net Interest Income		30,222			29,100			29,011		25,666		25,710
Provision for loan losses		199			369			987		855		433
Net Interest Income After Provision for Loan Losses		30,023			28,731			28,024		24,811		25,277

Noninterest income:
Service charges on deposit accounts		2,129			2,229			2,217		2,115		2,002
Trust fees		806			791			781		759		801
Mortgage banking fees		999			955			1,177		1,032		1,088
Brokerage commissions and fees		631			511			604		576		441
Marine finance fees		141			205			258		492		197
Interchange income		2,217			1,989			1,925		2,033		1,737
Other deposit based EFT fees		127			99			88		96		114
BOLI income		841			396			366		334		330
Gain on participated loan		0			0			0		725		0
Other		739			607			666		684		598
		8,630			7,782			8,082		8,846		7,308
Securities gains, net		89			1			160		0		0
Bargain purchase gain, net		0			416			0		0		0
Total Noninterest Income		8,719			8,199			8,242		8,846		7,308

Noninterest expenses:
Salaries and wages		14,668			11,135			11,850		9,301		8,789
Employee benefits		2,482			2,178			2,430		2,541		2,415
Outsourced data processing costs		4,439			2,455			3,277		2,234		2,184
Telephone / data lines		528			412			446		443		496
Occupancy		2,972			2,314			2,396		2,011		2,023
Furniture and equipment		998			1,000			883		819		732
Marketing		1,049			1,128			1,099		1,226		975
Legal and professional fees		2,357			2,580			2,189		1,590		1,663
FDIC assessments		544			551			552		520		589
Amortization of intangibles		446			397			397		315		315
Asset dispositions expense		90			79			77		173		143
Net (gain)/loss on other real estate owned and repossessed assets		(51	)		(157	)		262		53		81
Other		3,088			3,097			3,269		3,062		2,781
Total Noninterest Expenses		33,610			27,169			29,127		24,288		23,186

Income Before Income Taxes		5,132			9,761			7,139		9,369		9,399
Income taxes		1,946			3,725			2,698		3,564		3,540

Net Income	$	3,186		$	6,036		$	4,441	$	5,805	$	5,859

Per share of common stock:

Net income diluted	$	0.09		$	0.18		$	0.13	$	0.18	$	0.18
Net income basic		0.09			0.18			0.13		0.18		0.18
Cash dividends declared		0.00			0.00			0.00		0.00		0.00

Average diluted shares outstanding		35,452,968			34,395,373			34,193,540		33,233,508		33,135,618
Average basic shares outstanding		34,848,875			34,115,697			33,907,178		32,978,006		32,971,444

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

	March 31,			December 31,			March 31,
(Dollars in thousands, except share data)	2016			2015			2015

Assets
Cash and due from banks	$	113,178		$	81,216		$	65,097
Interest bearing deposits with other banks		35,450			54,851			134,832
Total Cash and Cash Equivalents		148,628			136,067			199,929

Securities:
Available for sale (at fair value)		905,182			790,766			730,232
Held for investment (at amortized cost)		198,231			203,525			223,061
Total Securities		1,103,413			994,291			953,293

Loans held for sale		19,867			23,998			18,851

Loans		2,455,214			2,156,330			1,854,487
Less: Allowance for loan losses		(19,724	)		(19,128	)		(17,721	)
Net Loans		2,435,490			2,137,202			1,836,766

Bank premises and equipment, net		61,416			54,579			48,189
Other real estate owned		8,091			7,039			6,169
Goodwill		54,416			25,211			25,222
Other intangible assets		11,524			8,594			7,139
Bank owned life insurance		43,417			43,579			35,983
Net deferred tax assets		67,049			60,274			61,467
Other assets		47,232			43,946			38,948
	$	4,000,543		$	3,534,780		$	3,231,956

Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest demand	$	1,054,069		$	854,447		$	793,336
Interest-bearing demand		750,904			734,749			634,854
Savings		313,179			295,851			272,963
Money market		741,657			665,353			596,600
Other time certificates		164,388			153,318			166,905
Brokered time certificates		11,062			9,403			7,985
Time certificates of $100,000 or more		187,188			131,266			137,182
Total Deposits		3,222,447			2,844,387			2,609,825

Federal funds purchased and securities sold under agreements to repurchase, maturing within 30 days		198,330			172,005			170,023
Borrowed funds		50,000			50,000			50,000
Subordinated debt		70,031			69,961			64,627
Other liabilities		46,727			44,974			15,637
		3,587,535			3,181,327			2,910,112

Shareholders' Equity
Common stock		3,792			3,435			3,300
Additional paid in capital		450,389			399,162			379,740
Accumulated deficit		(39,672	)		(42,858	)		(59,140	)
Treasury stock		(88	)		(73	)		(83	)
		414,421			359,666			323,817
Accumulated other comprehensive (loss), net		(1,413	)		(6,213	)		(1,973	)
Total Shareholders' Equity		413,008			353,453			321,844
	$	4,000,543		$	3,534,780		$	3,231,956

Common Shares Outstanding		37,922,250			34,351,409			33,136,152

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

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

	QUARTERS
	2016			2015
(Dollars in thousands, except per share data)	First			Fourth			Third			Second			First
Net income	$	3,186		$	6,036		$	4,441		$	5,805		$	5,859

Operating Ratios
Return on average assets-GAAP basis (2),(3)		0.36	%		0.69	%		0.52	%		0.72	%		0.75	%
Return on average tangible assets (2),(3),(4)		0.39			0.73			0.56			0.75			0.79
Return on average shareholders' equity-GAAP basis (2),(3)		3.46			6.78			5.05			7.13			7.42
Efficiency ratio (5)		84.98			72.57			76.29			68.57			68.33
Noninterest income to total revenue		22.21			21.10			21.79			25.63			22.13

Net interest margin (1),(2)		3.68			3.67			3.75			3.50			3.62
Average equity to average assets		10.30			10.20			10.34			10.12			10.17

Credit Analysis Excluding Acquired Loans
Net charge-offs (recoveries) - non-acquired loans	$	(539	)	$	245		$	(233	)	$	(358	)	$	(263	)
Net charge-offs - acquired loans		142			324			683			143			46
Total net charge-offs (recoveries)	$	(397	)	$	569		$	450		$	(215	)	$	(217	)

Net charge-offs (recoveries) to average loans - non-acquired loans		(0.10	)%		0.05	%		(0.04	)%		(0.08	)%		(0.06	)%
Net charge-offs to average loans - acquired loans		0.03			0.06			0.12			0.03			0.01
Total net charge-offs (recoveries) to average loans		(0.07	)		0.11			0.08			(0.05	)		(0.05	)

Loan loss provision (recapture) - non-acquired loans	$	(20	)	$	(40	)	$	852		$	271		$	292
Loan loss provision - acquired loans		219			409			135			584			141
Total loan loss provision	$	199		$	369		$	987		$	855		$	433

Allowance to loans at end of period - non-acquired loans		1.04	%		1.03	%		1.11	%		1.10	%		1.13	%
Discount for credit losses to acquired loans at end of period		3.79			4.24			4.13			3.32			3.56

Nonperforming loans - non-acquired loans	$	11,881		$	12,758		$	14,474		$	15,054		$	16,860
Nonperforming loans - acquired loans		3,707			4,628			2,636			4,543			4,196
Other real estate owned - non-acquired		5,676			3,699			4,183			4,855			4,738
Other real estate owned - acquired		2,415			3,340			3,250			1,053			1,431
Total nonperforming assets	$	23,679		$	24,425		$	24,543		$	25,505		$	27,225

Restructured loans (accruing)	$	19,956		$	19,970		$	20,543		$	23,441		$	23,847

Purchased noncredit impaired loans	$	558,262		$	320,349		$	355,739		$	284,978		$	293,124
Purchased credit impaired loans		16,531			12,109			12,673			6,562			7,119
Total acquired loans	$	574,793		$	332,458		$	368,412		$	291,540		$	300,243

Nonperforming loans to loans at end of period - non-acquired loans		0.48	%		0.59	%		0.69	%		0.78	%		0.91	%
Nonperforming loans to loans at end of period - acquired loans		0.15			0.22			0.12			0.23			0.23
Total nonperforming loans to loans at end of period		0.63			0.81			0.81			1.01			1.14

Nonperforming assets to total assets - non-acquired		0.44	%		0.47	%		0.55	%		0.62	%		0.67	%
Nonperforming assets to total assets - acquired		0.15			0.22			0.18			0.17			0.17
Total nonperforming assets to total assets		0.59			0.69			0.73			0.79			0.84

Per Share Common Stock
Net income diluted-GAAP basis	$	0.09		$	0.18		$	0.13		$	0.18		$	0.18
Net income basic-GAAP basis		0.09			0.18			0.13			0.18			0.18

Cash dividends declared		0.00			0.00			0.00			0.00			0.00
Book value per share common		10.89			10.29			10.20			9.84			9.71

Average Balances
Total average assets	$	3,601,381		$	3,463,277		$	3,373,858		$	3,225,127		$	3,151,132
Less: Intangible assets		37,006			34,457			35,185			32,188			31,221
Total average tangible assets	$	3,564,375		$	3,428,820		$	3,338,673		$	3,192,939		$	3,119,911

Total average equity	$	370,816		$	353,392		$	348,901		$	326,338		$	320,346
Less: Intangible assets		37,006			34,457			35,185			32,188			31,221
Total average tangible equity	$	333,810		$	318,935		$	313,716		$	294,150		$	289,125

(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)

	March 31,		December 31,		March 31,
SECURITIES	2016		2015		2015

U.S. Treasury and U.S. Government Agencies	$	13,998	$	3,911	$	3,863
Mortgage-backed		620,840		539,688		575,905
Collateralized loan obligations		121,168		122,583		126,376
Obligations of states and political subdivisions		59,520		39,891		24,088
Corporate and other debt securities		46,172		44,273		0
Private commercial mortgage backed securities		43,484		40,420		0
Securities Available for Sale		905,182		790,766		730,232

Mortgage-backed		156,842		162,225		181,762
Collateralized loan obligations		41,389		41,300		41,299
Securities Held for Investment		198,231		203,525		223,061
Total Securities	$	1,103,413	$	994,291	$	953,293

	March 31,		December 31,		March 31,
LOANS	2016		2015		2015

Construction and land development	$	147,594	$	108,787	$	100,341
Real estate mortgage		1,934,194		1,733,163		1,532,522
Installment loans to individuals		95,183		85,356		57,239
Commercial and financial		277,775		228,517		164,050
Other loans		468		507		335
Total Loans	$	2,455,214	$	2,156,330	$	1,854,487

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

	2016								2015
	First Quarter								Fourth Quarter								First Quarter
	Average					Yield/			Average					Yield/			Average					Yield/
(Dollars in thousands)	Balance			Interest		Rate			Balance			Interest		Rate			Balance			Interest		Rate
Assets
Earning assets:
Securities:
Taxable	$	996,301		$	5,683		2.28	%	$	924,730		$	5,312		2.30	%	$	939,015		$	4,898		2.09	%
Nontaxable		17,929			251		5.60			14,932			220		5.89			15,617			230		5.89
Total Securities		1,014,230			5,934		2.34			939,662			5,532		2.35			954,632			5,128		2.15

Federal funds sold and other investments		52,213			290		2.23			93,728			275		1.16			92,934			249		1.09

Loans, net		2,246,773			26,074		4.67			2,121,053			25,224		4.72			1,848,965			22,065		4.84

Total Earning Assets		3,313,216			32,298		3.92			3,154,442			31,031		3.90			2,896,531			27,442		3.84

Allowance for loan losses		(19,558	)							(19,940	)							(17,385	)
Cash and due from banks		81,947								85,951								63,689
Premises and equipment		57,062								55,139								46,605
Intangible assets		37,006								34,457								31,221
Bank owned life insurance		43,647								43,419								35,793
Other assets		88,061								109,809								94,678

	$	3,601,381							$	3,463,277							$	3,151,132

Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand	$	710,083		$	155		0.09	%	$	666,640		$	129		0.08	%	$	628,480		$	117		0.08	%
Savings		303,207			37		0.05			292,761			39		0.05			268,041			39		0.06
Money market		667,466			412		0.25			664,512			430		0.26			519,526			245		0.19
Time deposits		304,401			313		0.41			299,189			265		0.35			318,343			347		0.44
Federal funds purchased and other short term borrowings		193,036			135		0.28			168,444			89		0.21			212,123			98		0.19
Other borrowings		119,987			897		3.01			119,927			863		2.85			114,606			762		2.70

Total Interest-Bearing Liabilities		2,298,180			1,949		0.34			2,211,473			1,815		0.33			2,061,119			1,608		0.32

Noninterest demand		906,231								878,709								753,620
Other liabilities		26,154								19,703								16,047
Total Liabilities		3,230,565								3,109,885								2,830,786

Shareholders' equity		370,816								353,392								320,346

	$	3,601,381							$	3,463,277							$	3,151,132

Interest expense as a % of earning assets							0.24	%							0.23	%							0.23	%
Net interest income as a % of earning assets				$	30,349		3.68	%				$	29,216		3.67	%				$	25,834		3.62	%

(1)

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

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

	2016		2015
(Dollars in thousands)	First Quarter		Fourth Quarter		Third Quarter		Second Quarter		First Quarter

Customer Relationship Funding (Period End)
Noninterest demand
Commercial	$	768,890	$	592,621	$	619,960	$	561,742	$	546,876
Retail		212,367		198,077		182,381		180,484		191,262
Public funds		52,244		46,300		47,765		47,913		38,529
Other		20,568		17,449		19,771		18,290		16,669
		1,054,069		854,447		869,877		808,429		793,336

Interest-bearing demand
Commercial		101,767		77,500		69,037		60,411		66,532
Retail		496,846		479,056		443,022		410,601		416,766
Public funds		152,291		178,193		106,285		128,256		151,556
		750,904		734,749		618,344		599,268		634,854

Total transaction accounts
Commercial		870,657		670,121		688,997		622,153		613,408
Retail		709,213		677,133		625,403		591,085		608,028
Public funds		204,535		224,493		154,050		176,169		190,085
Other		20,568		17,449		19,771		18,290		16,669
		1,804,973		1,589,196		1,488,221		1,407,697		1,428,190

Savings		313,179		295,851		286,810		282,588		272,963

Money market
Commercial		271,567		208,520		225,629		191,061		185,668
Retail		380,233		312,756		306,138		272,853		274,203
Public funds		89,857		144,077		128,865		158,059		136,729
		741,657		665,353		660,632		621,973		596,600

Time certificates of deposit		362,638		293,987		306,633		292,919		312,072
Total Deposits	$	3,222,447	$	2,844,387	$	2,742,296	$	2,605,177	$	2,609,825

Customer sweep accounts	$	198,330	$	172,005	$	148,607	$	157,676	$	170,023

Total core customer funding (1)	$	3,058,139	$	2,722,405	$	2,584,270	$	2,469,934	$	2,467,776

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