EX-99.1 2 s104490_ex99-1.htm EXHIBIT 99-1

EXHIBIT 99.1

 

To Form 8-K dated October 26, 2016

SEACOAST BANKING CORPORATION OF FLORIDA

NEWS RELEASE

 

Stephen Fowle

Executive Vice President

Chief Financial Officer

(772) 463-8977

steve.fowle@seacoastbank.com

 

Seacoast Reports Third Quarter 2016 EPS Increased 85% on Record Loan Production and Expense Management

 

STUART, Fla., October 26, 2016 /PRNewswire/ — Seacoast Banking Corporation of Florida (“Seacoast” or “the Company”) (NASDAQ: SBCF) today reported results for the third quarter of 2016.

 

Seacoast reported net income of $9.1 million during the third quarter of 2016, a 106% or $4.7 million increase from the third quarter of 2015 and an increase of $3.8 million, or 71%, compared to the second quarter of 2016. Third quarter return on average assets (ROA) increased 31 basis points quarter-over-quarter to 0.82%, return on average equity increased 329 basis points to 8.4% and return on average tangible common equity1 (ROTCE) increased 429 basis points to 10.9%. Third quarter 2016 results include $2.6 million in costs related to consolidation of branches acquired through the BMO Harris acquisition and other nonrecurring items1.

 

Seacoast reported third quarter adjusted net income1 of $10.6 million, a 70% or $4.4 million increase year-over-year, and an increase of $1.8 million, or 21% (not annualized), from the prior quarter. Diluted earnings per common share (EPS) was $0.24, up 71% from $0.14 in the prior quarter and up 85% from $0.13 in the third quarter of 2015. Adjusted diluted EPS1 was $0.28, a $0.05 or 22% increase from the second quarter of 2016 and a gain of $0.10 or 56% from the year-ago period.

 

Net income for the first nine months of 2016 was $18.4 million compared to $16.1 million in the first nine months of 2015. Diluted EPS was $0.49 compared to $0.48 in the same period of 2015. Adjusted net income1 increased $7.8 million to $26.1 million for the first nine months of 2016 and adjusted1 diluted EPS increased 27% to $0.70.

 

Third Quarter 2016 Financial Highlights

·Total revenues increased $10.2 million, or 27% year-over-year to $47.4 million and increased $3.8 million, or 9% (not annualized), from the prior quarter.
·Net interest income increased $8.4 million or 29% year over year and $3.0 million or 9% above second quarter levels. Net interest margin increased six basis points, linked quarter, to 3.69%.

 

 - continued -

 

 

 

·Adjusted fully diluted earnings per share1 rose to $0.28, an increase of 56% year-over-year and 22% from the second quarter of 2016.

·Adjusted return on assets1 was 0.95%, an eleven basis points improvement over second quarter 2016. Adjusted return on tangible common equity1 gained 195 basis points, reaching 12. 6% during the third quarter.

 

Third Quarter 2016 Growth Highlights

·Loans grew $670 million or 32% from year-ago levels. Adjusting for acquisitions, loan growth was $330 million or 16%. Compared to the prior quarter, loans increased at a 23% annualized growth rate, adding $153 million sequentially.
·Consumer, small business, and mortgage loan production all hit record levels in the third quarter.
·Debit card spend reached a record high, up 20% from 2015 levels, as organic households grew 3.5% above third quarter 2015 levels. Interchange income increased 20%, as a result.

 

2016 Guidance

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

 

Dennis S. Hudson, III, Chairman and CEO said, “Seacoast’s continuing transformation delivered exceptional results for shareholders during the third quarter. Robust organic loan growth, combined with success serving customers gained through our recent acquisitions, enabled us to increase net interest income 29% and noninterest income 21% from last year.

 

“Total loans increased 23%, annualized, compared with the second quarter of this year as we achieved record volumes in our small business, consumer and residential businesses. $27 million of third quarter loan growth was related to loan purchases during the quarter. Excluding acquisitions, loans grew 16% compared to the third quarter of 2015. Our pace of consumer and small business lending is helping us maintain a granular loan portfolio and enabling us to limit commercial real estate to approximately 209% of total capital.

 

“With strong top-line growth, Seacoast drove positive operating leverage through continued branch closures and other cost savings measures related to our Orlando acquisitions and legacy expense base. Year-over-year revenues excluding securities gains grew 27%, outpacing the 18% increase in adjusted expenses1 during the corresponding period.

 

“Seacoast’s performance also reflects continued success in deepening relationships with current customers. The number of consumer loans and deposit accounts sold to existing customers increased at an annualized rate of 77% and 54% respectively, from prior year levels. Check deposits made outside the branch grew to 35% this quarter, up from 27% in the same period last year.”

 

 

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

 

 

 

 

“The success of our balanced growth strategy is apparent in the improved tangible results for shareholders. During the last four quarters, we delivered 56% growth in adjusted diluted EPS1 while improving adjusted ROA1 and ROTCE1 metrics by 18 basis points and 440 basis points, respectively. This improvement in performance positions Seacoast well as we continue to execute against our $1 per share goal for this year and look ahead to 2017,” Hudson concluded.

 

FINANCIAL HIGHLIGHTS  3Q16   2Q16   1Q16   4Q15   3Q15 
(Dollars in thousands except per share data)                    
                     
Total Assets   4,513,934    4,381,204    4,001,323    3,534,780    3,378,108 
                          
Loans   2,769,338    2,616,052    2,455,214    2,156,330    2,099,447 
                          
Deposits   3,510,493    3,501,316    3,222,447    2,844,387    2,742,296 
                          
Net Income   9,133    5,332    3,966    6,036    4,441 
                          
Diluted Earnings Per Share   0.24    0.14    0.11    0.18    0.13 
                          
Return on Average Assets (ROA)   0.82%   0.51%   0.44%   0.69%   0.52%
Return on Average Tangible Common Equity (ROTCE)   10.9    6.6    5.1    7.8    5.9 
                          
Net Interest Margin   3.69    3.63    3.68    3.67    3.75 
Efficiency Ratio   68.6    78.0    81.7    72.6    76.3 
                          
Pretax, Pre-provision Income (1)  $14,002   $8,842   $6,600   $10,130   $8,126 
                          
Average Diluted Shares Outstanding (000)   38,170    38,142    35,453    34,395    34,194 
Adjusted Net Income (1)  $10,588   $8,773   $6,758   $6,569   $6,232 
Adjusted Diluted Earnings Per Share (1)   0.28    0.23    0.19    0.19    0.18 
                          
Adjusted ROA (1)   0.95%   0.84%   0.75%   0.75%   0.77%
Adjusted ROTCE (1)   12.6    10.6    8.5    8.9    8.2 
                          
Adjusted Efficiency Ratio (1)   63.1    64.8    69.6    69.1    68.2 
Adjusted Pretax, Pre-provision Income (1)  $16,370   $14,607   $11,082   $10,990   $10,990 
                          
Annualized Adjusted Operating Expenses as a Percent of Average Assets (1)   2.78%   2.77%   3.05%   2.97%   3.07%

 

 

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

 

 

 

 

Acquisitions Update

“Our acquisitions of Floridian Financial Corporation and the BMO Harris’ Orlando banking operations in the first half of this year made Seacoast the largest Florida-based bank in Orlando, one of the nation’s fastest growing MSAs,” Hudson said. “Our strong results this quarter reflect the first full quarter of revenues from these acquisitions. During the quarter, we took the last of our redundant locations out of service, and we anticipate our fourth quarter results will benefit from the full expense reduction from these acquisitions.”

 

Florida Economic Update

"The Florida economy continues to show broad-based strength,” Hudson commented. “An October 2016 report released by Wells Fargo Securities Economics Group commented, ‘Florida’s economy continues to fire on all cylinders. Output, employment, income and population growth have comfortably outpaced the nation for the past four years. Moreover, Florida’s economy has continued to pick up steam over the past year while the U.S. economy lost momentum. Nonfarm employment is up 3.2 percent year-over-year, and the latest QCEW data suggest growth may be even stronger.2”

 

“Additionally, Florida’s residential real estate market remains steady. August statistics released by Florida Realtors indicates a year-over-year increase in closed sales and median sales price, while the median time to contract decreased to 40 days,” Hudson concluded.3

 

Third Quarter 2016 Income Statement Highlights

 

Strong Organic Growth Drives Continued Net Interest Income Improvement

Net interest income for the quarter totaled $37.4 million, an $8.4 million or 29% increase from third quarter 2015 levels. Net interest margin was 3.69%, down six basis points from the prior year.     Year-over-year net interest income improvement reflects strong organic loan growth combined with growth from successful acquisitions in the first half of the year. The decrease in margin reflects decreased loan yields, reflecting the current low interest rate environment, partially offset by improved balance sheet mix.

 

 

2 https://www08.wellsfargomedia.com/assets/pdf/commercial/insights/economics/regional-reports/state-south- chartbook-20161010.pdf

 

3 http://www.floridarealtors.org/ResearchAndStatistics/Florida-Market-Reports/Index.cfm

 

 

 

 

Net interest income increased $3.0 million or 9% (not annualized) compared to the second quarter of 2016 and net interest margin increased six basis points from 3.63% in the prior quarter. Improvement reflects strong loan growth and deployment of excess liquidity held at the time of the BMO Harris acquisition in the second quarter 2016.

 

Noninterest Income Growth Benefits from Acquisitions, Loan Growth

Noninterest income excluding securities gains, totaled $9.8 million for the third quarter of 2016, $1.7 million or 21% above the $8.1 million recorded in the same quarter of 2015. Significant contributors to the increase in noninterest income include mortgage banking revenue, which increased $0.7 million or 60% from the year-ago period; deposit service charges, which increased $0.5 million or 22%; interchange income, which increased $0.4 million or 20%; and other income, which increased $0.3 million or 45%. Digitally-driven product marketing and service delivery, combined with strong organic and acquisition-related household growth, drove the growth in noninterest income during the quarter.

 

Noninterest income excluding securities gains, increased $0.7 million or 7% (not annualized) from second quarter 2016 levels. Strength in mortgage banking revenue and acquisition-driven increases in deposit service charges provided significant lift despite a seasonally slower quarter.

 

Noninterest Expense Growth Reflects Merger Activity

Noninterest expense increased $4.3 million from the third quarter of 2015. Third quarter 2016 expenses were impacted by $2.6 million in acquisition and other nonrecurring expenses compared to $3.0 million in the third quarter of 2015. Adjusted noninterest expense1 increased $4.7 million from prior-year levels. The year-over-year increase in adjusted expense reflects ongoing costs related to the acquisitions of Floridian Financial Group and BMO Harris’ Orlando operations. Expenses also reflect costs to support significant organic growth and investment in the franchise. Revenues, excluding securities gains, grew 27% compared to prior year levels while adjusted noninterest expense1 grew 18% - providing 9% operating leverage. Ten full-service offices were taken out of service during the third quarter of 2016, most in the Central Florida region, with an anticipated favorable reduction to noninterest expenses prospectively.

 

Noninterest expense decreased $1.4 million from the second quarter, 2016 due to a higher level of merger expenses recorded in the second quarter related to 2016 acquisitions. Adjusted noninterest expense1 grew $1.8 million or 6%. Contributing to the higher adjusted noninterest expense1 during the third quarter of 2016 were salary and benefits costs, occupancy and equipment, and data processing expense, largely from acquisition activity. Additionally, incentive costs increased with strong third quarter production. Of note, our recent brush with Hurricane Matthew is not expected to have any material impact to noninterest expense in the fourth quarter.

 

 

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

 

 

 

 

Third Quarter 2016 Balance Sheet Highlights

 

Strong Originations Drive Loan Portfolio Even Higher

Net loans totaled $2.77 billion, an increase of $670 million or 32% above the third quarter 2015. Excluding acquisitions, loans increased $330 million or 16% above the prior year. Loans increased $153 million or 23%, annualized, from second quarter 2016.

 

Loan production continued at a strong pace across all business lines. Commercial loan originations for the quarter exceeded $109 million, well ahead of 2015 levels, with the commercial pipeline (in underwriting and approval or approved and not yet closed) totaling $119 million at September 30, 2016.

 

Consumer loan and small business originations totaled $88 million during the third quarter of 2016 compared to $53 million one year ago. Closed residential production for the quarter totaled $114 million compared with $74 million during the third quarter 2015, with a total residential pipeline of $79 million as of September 30, 2016, up from $38 million one year ago. $27 million of third quarter loan growth is related to marine and mortgage loan purchases made during the quarter.

 

(Dollars in thousands)  3Q16   2Q16   1Q16   4Q15   3Q15 
                     
Commercial pipeline  $119,394   $113,261   $97,953   $105,556   $104,915 
Commercial loans closed   109,078    111,133    67,252    80,003    71,823 
                          
Residential pipeline  $79,379   $66,083   $57,739   $30,340   $37,958 
Residential loans retained   68,748    64,003    36,335    24,905    36,027 
Residential loans sold   79,151    39,499    30,345    35,278    37,996 

 

Credit Quality Remains Stable and Strong

The provision for loan losses was $550,000 for the third quarter of 2016, down from $987,000 in the third quarter 2015 and $662,000 recorded in the second quarter 2016. The decrease in provision was driven by strong credit results, including $1.4 million in net recoveries collected during the quarter, offset by the impact of continued loan growth. The ratio of allowance for loan losses to non-acquisition related loans was 1.00% as of September 30 2016, a slight decrease from 1.01% as of June 30, 2016.

 

Additional highlights include:

·Nonperforming loans to total loans outstanding at the end of the third quarter decreased to 0.66%, down from 0.81% as of September 30, 2015;
·Nonperforming assets to total assets declined to 0.69%, compared to 0.73% one year ago. Of $31.2 million in nonperforming assets, eleven properties at a carrying value of $7.6 million relate to closed branch properties held as REO.

 

Deposits Built on Core Customer Growth and Acquired Deposits

Total deposits were $3.5 billion as of September 30, 2016, $768 million or 28% above the third quarter 2015. Core customer funding increased to $3.31 billion, a $728 million or 28% increase. Excluding acquisitions, core customer funding increased by $218 million or 8% and total deposits increased $127 million or 5% above the third quarter 2015. Core customer funding increased $14 million and total deposits grew $9 million compared to the second quarter 2016. Seacoast recognized growth in deposits despite seasonal drawdowns of public funds, planned decrease in high-cost acquired certificates of deposit and significant branch consolidation. This increase compares to a slight decrease in deposits, excluding acquired deposits, during the third quarter 2015.

 

 

 

 

Noninterest demand deposits grew $22 million or 2% (not annualized) from the second quarter of 2016 and $299 million or 34% from the third quarter of 2015. Excluding acquired deposits, noninterest demand deposits increased $114 million over the third quarter 2015 and represent fully one-third of total deposits.

 

(Dollars in thousands)  Third
Quarter
2016		   Second
Quarter
2016		   First
Quarter
2016		   Fourth
Quarter
2015		   Third
Quarter
2015		 
Customer Relationship Funding                    
                     
Noninterest demand  $1,168,542   $1,146,792   $1,054,069   $854,447   $869,877 
Interest-bearing demand   776,480    776,388    750,904    734,749    618,344 
Money market   858,931    860,930    741,657    665,353    660,632 
Savings   340,899    330,928    313,179    295,851    286,810 
Time certificates of deposit   365,641    386,278    362,638    293,987    306,633 
Total deposits  $3,510,493   $3,501,316   $3,222,447   $2,844,387   $2,742,296 
Customer sweep accounts  $167,693   $183,387   $198,330   $172,005   $148,607 
Total core customer funding4  $3,312,545   $3,298,425   $3,058,139   $2,722,405   $2,584,270 

Demand deposit mix

(noninterest bearing)

   33.3%   32.8%   32.7%   30.0%   31.7%

 

Other Highlights

 

Income Taxes

Seacoast recorded a $4.3 million income tax provision in the third quarter of 2016, compared to $2.8 million in the second quarter of 2016 and $2.7 million in the prior year. The third quarter 2016 tax provision benefited from the early adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. As a result, Seacoast recorded a benefit of $418,000, adding $0.01 per diluted share.

 

Excluding the adoption of ASU 2016-09, the year-to-date effective tax rate was 35.7%. Implementation of this new accounting standard will continue to have an impact on the effective tax rate in future periods depending on stock-based compensation grants and their related vesting and exercise timing, as well as stock price. 

 

 

4 Total deposits and customer sweep accounts, excluding time certificates of deposit.

 

 

 

 

Capital Ratios Remain at Strong Levels

The common equity tier 1 capital ratio (CET1) was 10.9%, total capital ratio was 13.4% and the tier 1 leverage ratio was 9.2% at September 30, 2016. Ratios decreased slightly as average assets increased due to the BMO Harris acquisition late in the second quarter.

 

Tangible book value per share increased $0.27 to $9.35 while book value per share increased $0.25 to $11.45 compared to the second quarter of 2016. Tangible common equity to assets was 8.0% at September 30, 2016.

 

Conference Call Information

Seacoast will host a conference call on Thursday, October 27, 2016 at 10:00 a.m. (Eastern Time) to discuss the earnings results. Investors may call in (toll-free) by dialing (888) 517-2458 (passcode: 9762 990). 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 October 27, by dialing (888) 843-7419 and using passcode: 9762 990.

 

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 October 27, 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 $4.5 billion in assets and $3.5 billion in deposits as of September 30, 2016. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, 47 traditional branches of its locally-branded wholly-owned subsidiary bank, Seacoast Bank, and five commercial banking centers. Offices stretch from Ft. Lauderdale, Boca Raton and West Palm Beach north through the Daytona Beach area, into Orlando and Central Florida, and west to Okeechobee and surrounding counties. More information about the Company is available at SeacoastBanking.com.

 

Cautionary Notice Regarding Forward-Looking Statements

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

 

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

 

 

 

 

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

 

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

 

Explanation of Certain Unaudited Non-GAAP Financial Measures

 

The measures entitled adjusted net income; adjusted diluted earnings per share; return on average tangible common equity; adjusted revenue; adjusted return on assets; adjusted return on average tangible common equity; adjusted efficiency ratio; adjusted pre-tax, pre-provision income; annualized adjusted operating expenses as a percent of average assets; and adjusted noninterest expense are not measures recognized under U.S. generally accepted accounting principles (GAAP) and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are net income, diluted earnings per share, return on average equity, revenues, return on average assets, return on average equity, expenses/revenues, net income, noninterest expense as a percent of average assets, and noninterest expense, respectively.

 

 

 

 

Management uses these non-GAAP financial measures in its analysis of the Company's performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company's performance, and if not provided would be requested by the investor community. The Company believes the non-GAAP measures enhance investors' understanding of the Company's business and performance. These measures are also useful in understanding performance trends and in facilitating 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 presents non-GAAP measures to remove or adjust for items like transaction related merger and acquisition costs or other costs or revenue items that are not related to the ongoing operations of the company as well as to adjust intangible assets and intangible asset amortization from acquired companies. The Company believes these measures are useful to investors because removing the amount of intangible assets and amortization thereof, and removing costs and revenues not related to ongoing operations of the company (the level of which may vary from company to company and from period to period), allows investors to more easily compare the Company's capital position and financial performance to other companies in the industry that present similar measures. The Company also believes that removing these items provides a more relevant measure of the Company's financial performance from period to period. These measures are utilized by management to assess the capital adequacy and profitability of the Company.

 

These disclosures should not be considered an alternative to GAAP. The computations of adjusted net income; adjusted diluted earnings per share; return on average tangible common equity; adjusted revenue; adjusted return on assets; adjusted return on average tangible common equity; adjusted efficiency ratio; adjusted pre-tax, pre-provision income; annualized adjusted operating expenses as a percent of average assets; and adjusted noninterest expense and the reconciliation of these measures are set forth in the tables below.5:

 

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

 

 

 

 

Dollars in thousands except per share data)   Third
Quarter		     Second
Quarter		     First
 Quarter		     Fourth
Quarter		     Third
Quarter		  
    2016     2016     2016     2015     2015  
Net income   $ 9,133     $ 5,332     $ 3,966     $ 6,036     $ 4,441  
                                         
BOLI Income     0       0       (464 )     0       0  
Security gains     (225 )     (47 )     (89 )     (1 )     (160 )
Bargain purchase gain     0       0       0       (416 )     0  
Total Adjustments to Revenue     (225 )     (47 )     (553 )     (417 )     (160 )
                                         
Severance     287       464       306       187       670  
Merger related charges     1,628       2,448       4,038       1,043       2,120  
Branch closure charges and costs related
to expense initiative		     678       1,121       691       0       0  
Other     0       0       0       0       121  
Miscellaneous losses     0       0       0       48       112  
Early redemption cost for FHLB advances     0       1,777       0       0       0  
Total Adjustments to Noninterest Expense     2,593       5,810       5,035       1,278       3,023  
                                         
Effective tax rate on adjustments     (913 )     (2,322 )     (1,690 )     (328 )     (1,072 )
Adjusted Net Income  (1)     10,588       8,773       6,758       6,569       6,232  
Earnings per diluted share, as reported   $ 0.24     $ 0.14     $ 0.11     $ 0.18     $ 0.13  
Adjusted earnings per diluted share (1)     0.28       0.23     $ 0.19       0.19       0.18  
Average shares outstanding (000)     38,170       38,142       35,453       34,395       34,194  
                                         
Adjusted Net Income(1)   $ 10,588     $ 8,773     $ 6,758     $ 6,569     $ 6,232  
Provision for loan losses     550       662       199       369       987  
Income taxes     5,232       5,172       4,125       4,052       3,771  
Adjusted pretax, pre-provision income (1)   $ 16,370     $ 14,607     $ 11,082     $ 10,990     $ 10,990  
Revenue   $ 47,437     $ 43,651     $ 38,941     $ 37,299     $ 37,253  
Total Adjustments to Revenue     (225 )     (47 )     (553 )     (417 )     (160 )
Adjusted Revenue(1)   $ 47,212     $ 43,604     $ 38,388     $ 36,882     $ 37,093  
                                         
Noninterest Expense   $ 33,435     $ 34,808     $ 32,341     $ 27,169     $ 29,127  
Total Adjustments to Noninterest Expense     2,593       5,810       5,035       1,278       3,023  
Adjusted Noninterest Expense(1)     30,842     $ 28,998     $ 27,306     $ 25,891     $ 26,104  
Adjusted Noninterest Expense     30,841       28,998       27,306       25,891       26,104  
Foreclosed property expense & amortization    intangible     (851 )     (553 )     (484 )     (324 )     (736 )
Net Adjusted Noninterest Expense     29,990       28,445       26,822       25,567       25,368  
Adjusted Revenue     47,212       43,604       38,388       36,882       37,093  
Impact of FTE adjustment     287       308       127       117       119  
Adjusted Revenue on a fully taxable equivalent basis     47,499       43,912       38,515       36,999       37,212  
                                         
Adjusted Efficiency Ratio(6)     63.14 %     64.78 %     69.64 %     69.10 %     68.17 %
                                         
Return on Average Assets (ROA)     0.82 %     0.51 %     0.44 %     0.69 %     0.52 %
Impacted of adjustments for Adjusted Net Income(7)     0.13       0.33       0.31       0.06       0.25  
Adjusted  Return on Average Assets (Adjusted ROA)     0.95 %     0.84 %     0.75 %     0.75 %     0.77 %
                                         
Return on Average Common Equity     8.4 %     5.2 %     4.3 %     6.8 %     5.1 %
Impact of removing average intangible assets and related amortization (8)     2.5       1.4       0.8       1.0       0.8  
Return on Average Tangible Common Equity  (ROTCE)     10.9 %     6.6 %     5.1 %     7.8 %     5.9 %
Impacted of adjustments for Adjusted Net Income 45)     1.7       4.0       3.4       1.1       2.3  
Adjusted Return on Average Tangible Common Equity     12.6 %     10.6 %     8.5 %     8.9 %     8.2 %

 

 

 

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

(6) Defined as ( adjusted 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 adjusted noninterest income).

(7) 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.

(8) Includes adjusted detailed in Total Adjustments to Revenue, Total Adjustments to Noninterest Expense and the Effective tax rate on adjustments

 

 

 

 

 

FINANCIAL  HIGHLIGHTS (Unaudited) 10/31/16
SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES    

 

(Dollars in thousands, except share data)  Three Months Ended   Nine Months Ended 
   September 30,   June 30,   September 30,   September 30,   September 30, 
   2016   2016   2015   2016   2015 
Summary of Earnings                         
Net income  $9,133   $5,332   $4,441   $18,431   $16,105 
Net interest income  (1)   37,735    34,801    29,130    102,885    80,752 
Net interest margin  (1), (2)   3.69    3.63    3.75    3.67    3.62 
                        . 
Performance Ratios                         
Return on average assets-GAAP basis (2), (3)   0.82%   0.51%   0.52%   0.60%   0.66%
Return on average shareholders' equity-GAAP basis (2), (3)   8.44    5.15    5.05    6.06    6.49 
Return on average tangible shareholders' equity-GAAP basis (2), (3), (4)   10.91    6.62    5.94    7.61    7.50 
Efficiency ratio (5)   68.60    78.01    76.29    75.69    71.23 
Noninterest income to total revenue   20.68    20.89    21.79    21.21    23.16 
                          
Per Share Data                         
Net income diluted-GAAP basis  $0.24   $0.14   $0.13   $0.49   $0.48 
Net income basic-GAAP basis   0.24    0.14    0.13    0.50    0.48 
Book value per share common   11.45    11.20    10.20    11.45    10.20 
Tangible book value per share   9.35    9.08    9.18    9.35    9.18 
Cash dividends declared   0.00    0.00    0.00    0.00    0.00 

 

 

 

(1)Calculated on a fully taxable equivalent basis using amortized cost.
(2)These ratios are stated on an annualized basis and are not necessarily indicative of future periods.
(3)The calculation of ROA and ROE do not include the mark-to-market unrealized gains (losses) because the unrealized gains (losses) are not included in net income.
(4)The Company defines tangible common equity as total shareholder's equity less intangible assets.
(5)Defined as (noninterest expense less foreclosed property expense and amortization of intangibles) divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains and bargain purchase gain, net).

 

 

 

 

FINANCIAL HIGHLIGHTS

 

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

 

   September 30,   June 30,   September 30, 
(Dollars in thousands, except share data)  2016   2016   2015 
             
Selected Financial Data               
Total assets  $4,513,934   $4,381,204   $3,378,108 
Securities available for sale (at fair value)   866,613    923,560    728,161 
Securities held for investment (at amortized cost)   392,138    401,570    209,047 
Net loans   2,746,654    2,595,327    2,080,119 
Deposits   3,510,493    3,501,316    2,742,296 
Total shareholders' equity   435,519    425,429    350,280 
                
Average Balances (Year-to-Date)               
Total average assets  $4,077,463   $3,904,091   $3,250,855 
Less: intangible assets   62,240    53,228    32,879 
Total average tangible assets  $4,015,223   $3,850,863   $3,217,976 
                
Total average equity  $406,080   $393,782   $331,966 
Less: intangible assets   62,240    53,228    32,879 
Total average tangible equity  $343,840   $340,554   $299,087 
                
Credit Analysis               
Net (recoveries) year-to-date - non-acquired loans  $(2,182)  $(854)  $(854)
Net charge-offs year-to-date - acquired loans   37    118    872 
Total net charge-offs (recoveries) year-to-date  $(2,145)  $(736)  $18 
                
Net (recoveries) to average loans (annualized) - non-acquired loans   (0.12)%   (0.07)%   (0.06)%
Net charge-offs to average loans (annualized) - acquired loans   0.01    0.01    0.06 
Total net charge-offs (recoveries) to average loans (annualized)   (0.11)   (0.06)   0.00 
                
Loan loss provision (recapture) year-to-date - non-acquired loans  $1,052   $403   $1,415 
Loan loss provision year-to-date - acquired loans   359    458    860 
Total loan loss provision year-to-date  $1,411   $861   $2,275 
                
Allowance to loans at end of period - non-acquired loans   1.00%   1.01%   1.11%
Discount for credit losses to acquired loans at end of period   4.24    3.96    4.13 
                
Nonperforming loans - non-acquired loans  $10,561   $10,919   $14,474 
Nonperforming loans - acquired loans   7,876    4,360    2,636 
Other real estate owned - non-acquired   3,681    3,791    4,183 
Other real estate owned - acquired   1,468    1,644    3,250 
Other real estate owned – branches out of service   7,585    3,259    0 
Total nonperforming assets  $31,171   $23,973   $24,543 
                
Restructured loans (accruing)  $19,272   $20,337   $20,543 
                
Purchased noncredit impaired loans  $484,006   $554,519   $347,262 
Purchased credit impaired loans   13,057    13,652    12,673 
Total acquired loans  $497,063   $568,171   $359,935 
                
Nonperforming loans to loans at end of period - non-acquired loans   0.38%   0.42%   0.69%
Nonperforming loans to loans at end of period - acquired loans   0.28    0.16    0.12 
Total nonperforming loans to loans at end of period   0.66    0.58    0.81 
                
Nonperforming assets to total assets - non-acquired   0.48%   0.41%   0.55%
Nonperforming assets to total assets - acquired   0.21    0.14    0.18 
Total nonperforming assets to total assets   0.69    0.55    0.73 

 

 

 

 

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

 

   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
(Dollars in thousands, except per share data)  2016   2015   2016   2015 
                 
Interest on securities:                    
Taxable  $6,966   $5,154   $19,253   $15,029 
Nontaxable   287    144    749    441 
Interest and fees on loans   31,932    25,276    87,210    69,285 
Interest on federal funds sold and other investments   429    249    1,152    747 
Total Interest Income   39,614    30,823    108,364    85,502 
                     
Interest on deposits   679    562    1,971    1,487 
Interest on time certificates   613    295    1,476    963 
Interest on borrowed money   874    955    2,754    2,665 
Total Interest Expense   2,166    1,812    6,201    5,115 
                     
Net Interest Income   37,448    29,011    102,163    80,387 
Provision for loan losses   550    987    1,411    2,275 
Net Interest Income After Provision for Loan Losses   36,898    28,024    100,752    78,112 
                     
Noninterest income:                    
Service charges on deposit accounts   2,698    2,217    7,057    6,334 
Trust fees   820    781    2,464    2,341 
Mortgage banking fees   1,885    1,177    4,248    3,297 
Brokerage commissions and fees   463    604    1,564    1,621 
Marine finance fees   138    258    558    947 
Interchange income   2,306    1,925    6,893    5,695 
Other deposit based EFT fees   109    88    352    298 
BOLI income   382    366    1,602    1,030 
Gain on participated loan   0    0    0    725 
Other   963    666    2,767    1,948 
    9,764    8,082    27,505    24,236 
Securities gains, net   225    160    361    160 
Total Noninterest Income   9,989    8,242    27,866    24,396 
                     
Noninterest expenses:                    
Salaries and wages   14,337    11,850    41,620    29,940 
Employee benefits   2,425    2,430    7,428    7,386 
Outsourced data processing costs   3,198    3,277    10,440    7,695 
Telephone / data lines   539    446    1,606    1,385 
Occupancy   3,675    2,396    10,292    6,430 
Furniture and equipment   1,228    883    3,509    2,434 
Marketing   780    1,099    2,786    3,300 
Legal and professional fees   2,213    2,189    7,226    5,442 
FDIC assessments   517    552    1,704    1,661 
Amortization of intangibles   728    397    1,767    1,027 
Asset dispositions expense   219    77    469    393 
Net (gain)/loss on other real estate owned and repossessed assets   (96)   262    (348)   396 
Early redemption cost for Federal Home Loan Bank advances   0    0    1,777    0 
Other   3,672    3,269    10,308    9,112 
Total Noninterest Expenses   33,435    29,127    100,584    76,601 
                     
Income Before Income Taxes   13,452    7,139    28,034    25,907 
Income taxes   4,319    2,698    9,603    9,802 
                     
Net Income  $9,133   $4,441   $18,431   $16,105 
                     
Per share of common stock:                    
                     
Net income diluted  $0.24   $0.13   $0.49   $0.48 
Net income basic   0.24    0.13    0.50    0.48 
Cash dividends declared   0.00    0.00    0.00    0.00 
                     
Average diluted shares outstanding   38,169,863    34,193,540    37,258,133    33,524,718 
Average basic shares outstanding   37,549,804    33,907,178    36,626,290    33,286,933 

 

 

 

 

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

 

   QUARTER 
   2016   2015 
(Dollars in thousands)  Third   Second   First   Fourth   Third 
                     
Interest on securities:                         
Taxable  $6,966   $6,603   $5,683   $5,312   $5,154 
Nontaxable   287    299    164    144    144 
Interest and fees on loans   31,932    29,244    26,034    25,184    25,276 
Interest on federal funds sold and other investments   429    433    290    275    249 
Total Interest Income   39,614    36,579    32,171    30,915    30,823 
                          
Interest on deposits   679    688    604    598    562 
Interest on time certificates   613    550    313    265    295 
Interest on borrowed money   874    848    1,032    952    955 
Total Interest Expense   2,166    2,086    1,949    1,815    1,812 
                          
Net Interest Income   37,448    34,493    30,222    29,100    29,011 
Provision for loan losses   550    662    199    369    987 
Net Interest Income After Provision for Loan Losses   36,898    33,831    30,023    28,731    28,024 
                          
Noninterest income:                         
Service charges on deposit accounts   2,698    2,230    2,129    2,229    2,217 
Trust fees   820    838    806    791    781 
Mortgage banking fees   1,885    1,364    999    955    1,177 
Brokerage commissions and fees   463    470    631    511    604 
Marine finance fees   138    279    141    205    258 
Interchange income   2,306    2,370    2,217    1,989    1,925 
Other deposit based EFT fees   109    116    127    99    88 
BOLI income   382    379    841    396    366 
Other   963    1,065    739    607    666 
    9,764    9,111    8,630    7,782    8,082 
Securities gains, net   225    47    89    1    160 
Bargain purchase gain, net   0    0    0    416    0 
Total Noninterest Income   9,989    9,158    8,719    8,199    8,242 
                          
Noninterest expenses:                         
Salaries and wages   14,337    13,884    13,399    11,135    11,850 
Employee benefits   2,425    2,521    2,482    2,178    2,430 
Outsourced data processing costs   3,198    2,803    4,439    2,455    3,277 
Telephone / data lines   539    539    528    412    446 
Occupancy   3,675    3,645    2,972    2,314    2,396 
Furniture and equipment   1,228    1,283    998    1,000    883 
Marketing   780    957    1,049    1,128    1,099 
Legal and professional fees   2,213    2,656    2,357    2,580    2,189 
FDIC assessments   517    643    544    551    552 
Amortization of intangibles   728    593    446    397    397 
Asset dispositions expense   219    160    90    79    77 
Net (gain)/loss on other real estate owned and repossessed assets   (96)   (201)   (51)   (157)   262 
Early redemption cost for Federal Home Loan Bank advances   0    1,777    0    0    0 
Other   3,672    3,548    3,088    3,097    3,269 
Total Noninterest Expenses   33,435    34,808    32,341    27,169    29,127 
                          
Income Before Income Taxes   13,452    8,181    6,401    9,761    7,139 
Income taxes   4,319    2,849    2,435    3,725    2,698 
                          
Net Income  $9,133   $5,332   $3,966   $6,036   $4,441 
                          
Per share of common stock:                         
                          
Net income diluted  $0.24   $0.14   $0.11   $0.18   $0.13 
Net income basic   0.24    0.14    0.11    0.18    0.13 
Cash dividends declared   0.00    0.00    0.00    0.00    0.00 
                          
Average diluted shares outstanding   38,169,863    38,141,550    35,452,968    34,395,373    34,193,540 
Average basic shares outstanding   37,549,804    37,470,071    34,848,875    34,115,697    33,907,178 

 

 

 

 

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

 

   September 30,   December 31,   September 30, 
(Dollars in thousands, except share data)  2016   2015   2015 
             
Assets               
Cash and due from banks  $89,777   $81,216   $69,650 
Interest bearing deposits with other banks   77,606    54,851    30,991 
Total Cash and Cash Equivalents   167,383    136,067    100,641 
                
Securities:               
Available for sale (at fair value)   866,613    790,766    728,161 
Held for investment (at amortized cost)   392,138    203,525    209,047 
Total Securities   1,258,751    994,291    937,208 
                
Loans held for sale   20,143    23,998    16,738 
                
Loans   2,769,338    2,156,330    2,099,447 
Less: Allowance for loan losses   (22,684)   (19,128)   (19,328)
Net Loans   2,746,654    2,137,202    2,080,119 
                
Bank premises and equipment, net   59,035    54,579    54,900 
Other real estate owned   12,734    7,039    7,433 
Goodwill   64,649    25,211    25,864 
Other intangible assets   15,291    8,594    8,991 
Bank owned life insurance   44,044    43,579    43,251 
Net deferred tax assets   58,848    60,274    61,046 
Other assets   66,402    43,946    41,917 
   $4,513,934   $3,534,780   $3,378,108 
                
Liabilities and Shareholders' Equity               
Liabilities               
Deposits               
Noninterest demand  $1,168,542   $854,447   $869,877 
Interest-bearing demand   776,480    734,749    618,344 
Savings   340,899    295,851    286,810 
Money market   858,931    665,353    660,632 
Other time certificates   166,987    153,318    163,028 
Brokered time certificates   8,218    9,403    8,323 
Time certificates of $100,000 or more   190,436    131,266    135,282 
Total Deposits   3,510,493    2,844,387    2,742,296 
                
Securities sold under agreements to repurchase   167,693    172,005    148,607 
Federal Home Loan Bank borrowings   305,000    50,000    50,000 
Subordinated debt   70,171    69,961    69,891 
Other liabilities   25,058    44,974    17,034 
    4,078,415    3,181,327    3,027,828 
                
Shareholders' Equity               
Common stock   3,799    3,435    3,435 
Additional paid in capital   453,007    399,162    398,067 
Accumulated deficit   (24,427)   (42,858)   (48,894)
Treasury stock   (691)   (73)   (38)
    431,688    359,666    352,570 
Accumulated other comprehensive income (loss), net   3,831    (6,213)   (2,290)
Total Shareholders' Equity   435,519    353,453    350,280 
   $4,513,934   $3,534,780   $3,378,108 
                
Common Shares Outstanding   38,025,020    34,351,409    34,346,456 

 

 

 

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)  Third   Second   First   Fourth   Third 
Net income  $9,133   $5,332   $3,966   $6,036   $4,441 
                          
Operating Ratios                         
Return on average assets-GAAP basis (2),(3)   0.82%   0.51%   0.44%   0.69%   0.52%
Return on average tangible assets (2),(3),(4)   0.88    0.56    0.48    0.73    0.56 
Return on average shareholders' equity-GAAP basis (2),(3)   8.44    5.15    4.30    6.78    5.05 
Efficiency ratio (5)   68.60    78.01    81.73    72.57    76.29 
Noninterest income to total revenue   20.68    20.89    22.21    21.10    21.79 
                          
Net interest margin (1),(2)   3.69    3.63    3.68    3.67    3.75 
Average equity to average assets   9.74    9.91    10.30    10.20    10.34 
                          
Credit Analysis                         
Net charge-offs (recoveries) - non-acquired loans  $(1,328)  $(315)  $(539)  $245   $(233)
Net charge-offs - acquired loans   (81)   (24)   142    324    683 
Total net charge-offs (recoveries)  $(1,409)  $(339)  $(397)  $569   $450 
                          
Net charge-offs (recoveries) to average loans - non-acquired loans   (0.20)%   (0.05)%   (0.10)%   0.05%   (0.04)%
Net charge-offs to average loans - acquired loans   (0.01)   0.00    0.03    0.06    0.12 
Total net charge-offs (recoveries) to average loans   (0.21)   (0.05)   (0.07)   0.11    0.08 
                          
Loan loss provision (recapture) - non-acquired loans  $649   $423   $(20)  $(40)  $852 
Loan loss provision - acquired loans   (99)   239    219    409    135 
Total loan loss provision  $550   $662   $199   $369   $987 
                          
Allowance to loans at end of period - non-acquired loans   1.00%   1.01%   1.04%   1.03%   1.11%
Discount for credit losses to acquired loans at end of period   4.24    3.96    3.79    4.24    4.13 
                          
Nonperforming loans - non-acquired loans  $10,561   $10,919   $11,881   $12,758   $14,474 
Nonperforming loans - acquired loans   7,876    4,360    3,707    4,628    2,636 
Other real estate owned - non-acquired   3,681    3,791    5,042    3,699    4,183 
Other real estate owned - acquired   1,468    1,644    2,415    3,340    3,250 
Other real estate owned – branches out of service   7,585    3,259    634    0    0 
Total nonperforming assets  $31,171   $23,973   $23,679   $24,425   $24,543 
                          
Restructured loans (accruing)  $19,272   $20,337   $19,956   $19,970   $20,543 
                          
Purchased noncredit impaired loans  $484,006   $554,519   $558,262   $320,349   $355,739 
Purchased credit impaired loans   13,057    13,652    16,531    12,109    12,673 
Total acquired loans  $497,063   $568,171   $574,793   $332,458   $368,412 
                          
Nonperforming loans to loans at end of period - non-acquired loans   0.38%   0.42%   0.48%   0.59%   0.69%
Nonperforming loans to loans at end of period - acquired loans   0.28    0.16    0.15    0.22    0.12 
Total nonperforming loans to loans at end of period   0.66    0.58    0.63    0.81    0.81 
                          
Nonperforming assets to total assets - non-acquired   0.48%   0.41%   0.44%   0.47%   0.55%
Nonperforming assets to total assets - acquired   0.21    0.14    0.15    0.22    0.18 
Total nonperforming assets to total assets   0.69    0.55    0.59    0.69    0.73 
                          
Per Share Common Stock                         
Net income diluted-GAAP basis  $0.24   $0.14   $0.11   $0.18   $0.13 
Net income basic-GAAP basis   0.24    0.14    0.11    0.18    0.13 
                          
Cash dividends declared   0.00    0.00    0.00    0.00    0.00 
Book value per share common   11.45    11.20    10.91    10.29    10.20 
                          
Average Balances                         
Total average assets  $4,420,438   $4,206,800   $3,601,381   $3,463,277   $3,373,858 
Less: Intangible assets   80,068    69,449    37,006    34,457    35,185 
Total average tangible assets  $4,340,370   $4,137,351   $3,564,375   $3,428,820   $3,338,673 
                          
Total average equity  $430,410   $416,748   $370,816   $353,392   $348,901 
Less: Intangible assets   80,068    69,449    37,006    34,457    35,185 
Total average tangible equity  $350,342   $347,299   $333,810   $318,935   $313,716 

 

 

 

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

 

 

 

 

   September 30,   December 31,   September 30, 
SECURITIES  2016   2015   2015 
             
U.S. Treasury and U.S. Government Agencies  $12,818   $3,911   $3,929 
Mortgage-backed   526,617    539,688    488,803 
Collateralized loan obligations   124,424    122,583    123,447 
Obligations of states and political subdivisions   64,434    39,891    33,037 
Corporate and other debt securities   76,638    44,273    39,918 
Private commercial mortgage backed securities   61,682    40,420    39,027 
Securities Available for Sale   866,613    790,766    728,161 
                
Mortgage-backed   350,644    162,225    167,747 
Collateralized loan obligations   41,494    41,300    41,300 
Securities Held for Investment   392,138    203,525    209,047 
Total Securities  $1,258,751   $994,291   $937,208 

 

 

   September 30,   December 31,   September 30, 
LOANS  2016   2015   2015 
                
Construction and land development  $153,901   $108,787   $96,036 
Real estate mortgage   2,126,923    1,733,163    1,714,120 
Installment loans to individuals   145,523    85,356    78,472 
Commercial and financial   342,502    228,517    210,335 
Other loans   489    507    484 
Total Loans  $2,769,338   $2,156,330   $2,099,447 

 

  

 

 

 

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

 

   2016   2015 
   Third Quarter   Second Quarter   Third Quarter 
   Average       Yield/   Average       Yield/   Average       Yield/ 
(Dollars in thousands)  Balance   Interest   Rate   Balance   Interest   Rate   Balance   Interest   Rate 
Assets                                             
Earning assets:                                             
Securities:                                             
Taxable  $1,264,345   $6,966    2.20%  $1,185,022   $6,603    2.23%  $966,764   $5,154    2.13%
Nontaxable   28,344    441    6.22    28,445    459    6.45    14,982    220    5.87 
Total Securities   1,292,689    7,407    2.29    1,213,468    7,062    2.33    981,746    5,374    2.19 
                                              
Federal funds sold and other investments   55,465    429    3.08    110,636    433    1.57    42,083    249    2.35 
                                              
Loans, net   2,720,121    32,065    4.69    2,532,533    29,392    4.67    2,060,326    25,319    4.88 
                                              
Total Earning Assets   4,068,275    39,901    3.90    3,856,637    36,887    3.85    3,084,155    30,942    3.98 
                                              
Allowance for loan losses   (21,934)             (20,185)             (19,294)          
Cash and due from banks   84,592              92,159              70,292           
Premises and equipment   62,552              63,149              54,436           
Intangible assets   80,068              69,449              35,185           
Bank owned life insurance   43,860              43,542              41,934           
Other assets   103,025              102,049              107,150           
                                              
   $4,420,438             $4,206,800             $3,373,858           
                                              
Liabilities and Shareholders' Equity                                             
Interest-bearing liabilities:                                             
Interest-bearing demand  $781,620   $151    0.08%  $755,206   $161    0.09%  $621,365   $116    0.07%
Savings   331,685    41    0.05    322,567    39    0.05    285,410    39    0.05 
Money market   864,228    487    0.22    810,709    488    0.24    637,840    407    0.25 
Time deposits   374,852    613    0.65    366,263    550    0.60    308,184    295    0.38 
Federal funds purchased and securities sold under agreements to repurchase   184,170    118    0.25    195,802    129    0.26    163,385    100    0.24 
Federal Home Loan Bank borrowings   223,467    240    0.43    171,011    215    0.51    70,109    418    2.37 
Other borrowings   70,137    516    2.93    70,064    504    2.89    68,961    437    2.52 
                                              
Total Interest-Bearing Liabilities   2,830,159    2,166    0.30    2,691,622    2,086    0.31    2,155,254    1,812    0.33 
                                              
Noninterest demand   1,131,073              1,059,039              849,468           
Other liabilities   28,796              39,391              20,235           
Total Liabilities   3,990,028              3,790,052              3,024,957           
                                              
Shareholders' equity   430,410              416,748              348,901           
                                              
   $4,420,438             $4,206,800             $3,373,858           
                                              
Interest expense as a % of earning assets             0.21%             0.22%             0.23%
Net interest income as a % of earning assets       $37,735    3.69%       $34,801    3.63%       $29,130    3.75%

 

 

 

(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)  Third Quarter   Second Quarter   First Quarter   Fourth Quarter   Third Quarter 
                     
Customer Relationship Funding (Period End)                         
Noninterest demand                         
Commercial  $892,876   $860,953   $768,890   $592,621   $619,960 
Retail   209,351    211,722    212,367    198,077    182,381 
Public funds   42,147    44,275    52,244    46,300    47,765 
Other   24,168    29,842    20,568    17,449    19,771 
    1,168,542    1,146,792    1,054,069    854,447    869,877 
                          
Interest-bearing demand                         
Commercial   100,824    102,105    101,767    77,500    69,037 
Retail   567,286    549,301    496,846    479,056    443,022 
Public funds   108,370    124,982    152,291    178,193    106,285 
    776,480    776,388    750,904    734,749    618,344 
                          
Total transaction accounts                         
Commercial   993,700    963,058    870,657    670,121    688,997 
Retail   776,637    761,023    709,213    677,133    625,403 
Public funds   150,517    169,257    204,535    224,493    154,050 
Other   24,168    29,842    20,568    17,449    19,771 
    1,945,022    1,923,180    1,804,973    1,589,196    1,488,221 
                          
Savings   340,899    330,928    313,179    295,851    286,810 
                          
Money market                         
Commercial   313,200    293,724    271,567    208,520    225,629 
Retail   411,550    419,821    380,233    312,756    306,138 
Public funds   134,181    147,385    89,857    144,077    128,865 
    858,931    860,930    741,657    665,353    660,632 
                          
Time certificates of deposit   365,641    386,278    362,638    293,987    306,633 
Total Deposits  $3,510,493   $3,501,316   $3,222,447   $2,844,387   $2,742,296 
                          
Customer sweep accounts  $167,693   $183,387   $198,330   $172,005   $148,607 
                          
Total core customer funding (1)  $3,312,545   $3,298,425   $3,058,139   $2,722,405   $2,584,270 

 

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