SEACOAST BANKING CORPORATION OF FLORIDA 
By STUART, Fla., April 24, 2014 /PRNewswire/ -- Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCF), today reported first quarter 2014 net income available to common shareholders of $2.3 million or $0.09 per diluted common share, compared with $1.1 million, or $.06 per diluted common share for 2013. The income resulted from improved earnings and redemption of the company's preferred stock outstanding on December 31, 2013. Seacoast's pretax income for the first quarter of $3.7 million was up 83.4 percent compared to a year ago, while net income was $2.3 million compared to $2.0 million for the same quarter last year. There was no tax provision in the prior period due to the impact of the valuation allowance for the company's deferred tax assets which was subsequently fully recovered in the third quarter of 2013.
http://photos.prnewswire.com/prnvar/20050916/SEACOASTLOGO
The improved earnings for the quarter reflect growth in customer deposit and loan relationships, improved credit costs and reduced core operating expenses which were offset by lower mortgage banking revenue and severance costs associated with cost reductions announced in the prior quarter. Additional spending related to customer growth initiatives and increased customer adoption of new digital products were also absorbed during the quarter.
Customer Relationship Growth Improves
-- Average noninterest bearing demand deposits were up $47.3 million, or
10.9 percent compared with the prior year and $18.2 million, or 15.6
percent linked quarter annualized
-- Ending noninterest bearing demand deposits increased to 28.2 percent of
total deposits compared with 22.7 percent for the first quarter 2012
-- Ending net loan balances increased by 7.5 percent, or $90.7 million
compared to first quarter 2013, and $8.8 million linked quarter
Additional Cost Reductions Announced
As previously announced, we implemented annual cost reductions totaling $1.4 million late in the first quarter which resulted in severance expense totaling $212,000 for the quarter. We have identified and are currently implementing an additional $1.9 million in cost reductions to better align our expense structure as we continue making the investments needed to drive sustainable long term customer growth. We expect our core operating expenses to fall below $17.9 million per quarter when these reductions are fully absorbed starting in the third quarter.
Innovation Driving Growth
During the quarter spending for new digital products, increased digital adoption and new personnel in marketing and data analytics totaled approximately $860,000 annualized, which we expect to grow to approximately $1.3 million annualized by year end. Growth in new households continued to accelerate with net new households produced during the quarter more than doubling over the same period in the prior year. As of quarter end, 47 percent of our online customers have adopted our mobile product offerings. The total number of services utilized by our retail customers increased to an average of 3.4 per household, primarily due to an increase in debit card activation, direct deposit and mobile banking users. We continue to focus on helping our customers discover more convenient ways to manage their financial lives while we also work to reduce our legacy fixed costs.
Acquisition Announced
Seacoast also announced today it has entered into a definitive agreement to acquire The BANKshares, Inc., a commercial bank headquartered in Winter Park, Florida, with $656 million in assets. Information concerning the merger is contained in a press release separately issued concurrent with this first quarter earnings release. Seacoast Chairman and CEO Dennis Hudson will discuss the merits of the acquisition during tomorrow's previously scheduled earnings conference call. Dial in instructions are provided below.
"We see enormous opportunities for growth in our markets and throughout Florida. Community banking will continue to be impacted by the transformation in customer convenience that is effecting banks of all sizes. We are working to position Seacoast to grow and prosper as consumers and businesses alike are quickly discovering new and more convenient ways to access and manage their financial lives. We see opportunities to capitalize on these new growth opportunities as we add key personnel in our Central and South Florida markets," said Dennis S. Hudson III, Chairman and Chief Executive Officer. "Over the past year we have invested significant resources to support this changing environment while cutting legacy costs, which will ultimately be significantly reduced resulting in further improvements to our operating leverage."
Additional detailed information concerning the quarter is presented below.
Deposit Growth Continues:
Our customer relationship strategy continues to produce low cost funding with retail and business households, which will prove particularly valuable as interest rates increase in the future and result in higher core revenues from both wider margins and increased usage of electronic and digital payment options. Deposit mix continued to improve in the first quarter with noninterest bearing demand deposits increasing to 28.2 percent of total deposits at the end of the first quarter, from 22.7 percent two years earlier. The improved deposit mix resulted in lower total interest expense, which declined $166,000 year over year.
(Dollars in thousands) First First First 2014 vs 2014 vs
Quarter Quarter 2013 2012
Quarter Change Change
2013 2012
2014
--- ----
Customer Relationship Funding
Demand deposits $513,925 $453,144 $394,532 13.4% 30.3%
(noninterest bearing)
NOW 504,698 482,913 436,712 4.5 15.6
Money market accounts 337,408 341,216 330,409 (1.1) 2.1
Savings deposits 202,170 177,213 148,068 14.1 36.5
Time certificates of deposit 261,594 307,678 427,738 (15.0) (38.8)
------- ------- -------
Total deposits 1,819,795 1,762,164 1,737,459 3.3 4.7
Sweep repurchase agreements 156,136 161,678 149,316 (3.4) 4.6
Total core customer funding (1) 1,714,337 1,616,164 1,459,037 6.1 17.5
Demand deposit mix 28.2% 25.7% 22.7%
(noninterest bearing)
--------------------
(1) Total deposits and sweep repurchase agreements, excluding certificates of deposits.
Credit Quality now at Pre-Crisis Levels:
-- Restructured loans reduced to $24.5 million, down $16.6 million compared
to a year ago;
-- Nonperforming loans totaled 2.0 percent of loans, compared with 2.1
percent last quarter and 2.9 percent one year ago; and
-- Nonperforming assets to total assets declined to 1.4 percent, compared
to 2.1 percent a year ago.
(Dollars in thousands ) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter
2014 2013 2013 2013 2013
---- ---- ---- ---- ----
Net charge-offs $(139) $838 $842 $2,027 $1,517
(recoveries)
Net charge-offs
(recoveries) to
average loans (0.04)% 0.26% 0.26% 0.64% 0.49%
$(735) $490 $1,180 $565 $953
Loan loss provision
Allowance to loans at
end of period 1.48% 1.54% 1.62% 1.59% 1.76%
Restructured loans
(accruing) $24,537 $25,137 $25,509 $29,612 $41,170
Nonperforming loans $26,220 $27,672 $28,724 $33,266 $35,208
Other real estate owned 6,369 6,860 5,589 10,063 10,850
----- ----- ----- ------ ------
Nonperforming assets $32,589 $34,532 $34,313 $43,329 $46,058
------- ------- ------- ------- -------
Nonperforming loans
to loans outstanding
at end of period 2.00% 2.12% 2.27% 2.63% 2.88%
Nonperforming assets to
total assets 1.41 1.52 1.60 1.98 2.09
Noninterest Income:
Noninterest income fell short of the prior quarter by 6.8 percent primarily due to a decline in mortgage banking fees as a result of lower mortgage demand and lower service charges on deposits resulting from seasonally higher average balances. Both items were also impacted by two fewer days in the first quarter compared to the fourth quarter. Interchange fees were up by 11.0 percent, or $139,000 compared to the same period last year due to higher usage and increased customers.
(Dollars in thousands) First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
2014 2013 2013 2013 2013
--- ---- ---- ---- ---- ----
Service charges on deposit accounts $1,507 $1,778 $1,741 $1,641 $1,551
Trust income 671 693 667 675 676
Mortgage banking fees 661 728 1,075 1,256 1,114
Brokerage commissions and fees 379 461 383 362 425
Marine finance fees 254 215 283 419 272
Interchange income 1,403 1,394 1,358 1,388 1,264
Other deposit based EFT fees 98 80 77 87 98
Other 585 617 503 507 531
Total 5,558 5,966 6,087 6,335 5,931
Securities gains, net 17 0 280 114 25
--- --- --- --- ---
$5,575 $5,966 $6,367 $6,449 $5,956
====== ====== ====== ====== ======
Noninterest Expenses:
Total noninterest expenses of $18.8 million decreased by $176,000, or 0.9 percent compared with the same period last year. Contributing to the reduction in expenses were lower costs in salaries and wages as a result of ongoing expense management, as well as, lower commissions in mortgage banking and wealth fees, year over year. Partially offsetting the reduction in costs were higher levels of marketing expense, up 81.1 percent from first quarter 2013, due to continued focus on expanding the Seacoast brand, digital communications, and building organic growth.
Persistent emphasis on expense reduction resulted in the successful implementation of first quarter cost savings totaling $1.4 million annually. These savings were the result of negotiations with our current vendors for competitive pricing, changes to the organizational structure, and the termination of regulatory agreements and requirements. Our focus remains on building our customer franchise and increasing our loan production, while investing in resources to support revenue growth. Further second quarter cost saving initiatives, forecasted at $1.9 million annually, have been identified and are currently being implemented. These continued efforts in cost management will increase our efficiency through the reduction of legacy costs and other operational expense.
First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter
(Dollars in thousands) 2014 2013 2013 2013 2013
---- ---- ---- ---- ----
Noninterest Expense:
Salaries and wages $7,412 $8,077 $7,533 $7,892 $7,437
Employee benefits 2,182 1,568 1,713 1,823 2,223
Outsourced data processing costs 1,695 1,586 1,657 1,631 1,498
Telephone / data lines 293 325 318 325 285
Occupancy expense 1,838 1,824 1,824 1,775 1,755
Furniture and equipment expense 571 597 605 571 561
Marketing expense 813 749 456 685 449
Legal and professional fees 941 839 874 949 796
FDIC assessments 386 451 713 720 717
Amortization of intangibles 196 196 195 197 195
Other 2,063 2,414 2,203 2,512 2,153
----- ----- ----- ----- -----
Total Core Operating Expense 18,390 18,626 18,091 19,080 18,069
Severance and organizational changes 24 10 33
212 0
Branch consolidation 0 0 0 0 0
Miscellaneous Losses 0 190 0 0 0
Recovery of prior legal fees 0 (350) 0 (650) 0
Net loss on OREO and repossessed assets 53 0 229 493 567
Asset dispositions expense 128 180 159 111 290
--- --- --- --- ---
Total $18,783 $18,646 $18,503 $19,044 $18,959
======= ======= ======= ======= =======
During the first quarter of 2014, we slowed the growth rate for investments in commercial loan production personnel compared to the prior two years. Our prior year's commercial banking expansion included three Accelerate offices in the Orlando MSA. For the first quarter, 2014, total commercial loan balances outstanding increased $69 million, or 12.1 percent compared to the prior year. Ending consumer loan balances at first quarter 2014 increased by 3.0 percent year over year, with residential loan balances increasing $18 million, or 3.1 percent.
The Company's tier 1 capital ratio is estimated at 17.5 percent and the total risk based capital ratio at 18.7 percent at March 31, 2014. The tier 1 leverage ratio was 10.6 percent at March 31, 2014. The Company closed on the sale of an additional $25 million in common equity in January 2014 related to the fourth quarter capital raise, which has further strengthened our capital ratios during the quarter.
Seacoast will host a conference call on Friday, April 25, 2014 at 9:30 a.m. (Eastern Time) to discuss the earnings results, business trends and the acquisition of BANKshares, Inc. Investors may call in (toll-free) by dialing (888) 517-2458 (passcode: 7789246; host: Dennis S. Hudson). Slides will be used during the conference call and may be accessed at Seacoast's website at SeacoastBanking.net by selecting "Presentations" under the heading "Investor Services." A replay of the call will be available for one month, beginning the afternoon of April 25, by dialing (888) 843-7419 (domestic), using the passcode 7789246.
Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast's website at SeacoastBanking.net. The link is located in the subsection "Presentations" under the heading "Investor Services." Beginning the afternoon of April 25, 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.
Seacoast Banking Corporation of Florida is one of the largest community banks headquartered in Florida with approximately $2.3 billion in assets and $1.8 billion in deposits as of March 31, 2014. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through 34 traditional branches of its locally-branded wholly-owned subsidiary bank, Seacoast National Bank, and five Accelerate offices fueled by the power of Seacoast National Bank. Offices stretch from Fort Lauderdale north through the Treasure Coast and into Orlando, and west to Okeechobee and surrounding counties.
________________________________________________________________
Cautionary Notice Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, ability to realized deferred tax assets, cost savings, enhanced revenues, economic and seasonal conditions in our markets, and improvements to reported earnings that may be realized from cost controls and for integration of banks that we have acquired, as well as statements with respect to Seacoast's objectives, expectations and intentions and other statements that are not historical facts. Actual results may differ from those set forth in the forward-looking statements.
Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance or achievements of Seacoast to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. You should not expect us to update any forward-looking statements.
You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "support", "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "further", "point to," "project," "could," "intend" or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the effects of future economic and market conditions, including seasonality; governmental monetary and fiscal policies, as well as legislative, tax and regulatory changes; changes in accounting policies, rules and practices; the risks of changes in interest rates on the level and composition of deposits, loan demand, liquidity and the values of loan collateral, securities, and interest sensitive assets and liabilities; interest rate risks, sensitivities and the shape of the yield curve; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market areas and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the Internet; and the failure of assumptions underlying the establishment of reserves for possible loan losses. The risks of mergers and acquisitions, include, without limitation: unexpected transaction costs, including the costs of integrating operations; the risks that the businesses will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; the potential failure to fully or timely realize expected revenues and revenue synergies, including as the result of revenues following the merger being lower than expected; the risk of deposit and customer attrition; any changes in deposit mix; unexpected operating and other costs, which may differ or change from expectations; the risks of customer and employee loss and business disruption, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures and solicitations of customers by competitors; as well as the difficulties and risks inherent with entering new markets.
All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2013 under "Special Cautionary Notice Regarding Forward-Looking Statements" and "Risk Factors", and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov.
FINANCIAL HIGHLIGHTS (Unaudited) 04/24/14
--------------------- ---------- --------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
(Dollars in thousands, except share data) Three Months Ended
----------------------------------------
March 31, December 31, March 31,
2014 2013 2013
---- ---- ----
Summary of Earnings
Net income (loss) $2,299 $1,850 $2,044
Net income available to common shareholders (loss) 2,299 588 1,107
Net interest income (1) 16,277 16,336 16,055
Net interest margin (1), (2) 3.07 3.08 3.15
Performance Ratios
Return on average assets-GAAP basis (2), (3) 0.41% 0.33% 0.38%
Return on average shareholders' equity-GAAP basis (2), (3) 4.02 3.10 5.09
Return on average tangible common shareholders' equity-GAAP basis (2), (3), (4) 4.26 3.32 4.45
Efficiency ratio (5) 84.30 81.92 81.45
Noninterest income to total revenue 25.52 26.82 27.04
Per Share Data
Net income (loss) diluted-GAAP basis (6) $0.09 $0.03 $0.06
Net income (loss) basic-GAAP basis (6) 0.09 0.03 0.06
Book value per share common (6) 8.79 8.40 6.20
Tangible book value per share (6) 8.77 8.37 8.70
Tangible common book value per share (4), (6) 8.77 8.37 6.15
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 (loss).
(4) The Company defines tangible common equity as total shareholder's equity less preferred stock and 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).
(6) Calculated based on total shares outstanding subsequent to the 5/1 reverse stock split.
FINANCIAL HIGHLIGHTS
---------------------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
March 31, December 31, March 31,
(Dollars in thousands, except share data) 2014 2013 2013
---------------------------------------- ---- ---- ----
Selected Financial Data
Total assets $2,315,992 $2,268,940 $2,202,049
Securities available for sale (at fair value) 658,512 641,611 649,196
Net loans 1,292,984 1,284,139 1,202,270
Deposits 1,819,795 1,806,045 1,762,164
Total shareholders' equity 228,382 198,604 166,705
Common shareholders' equity 228,382 198,604 117,647
Average Balances (Year-to-Date)
Total average assets $2,286,998 $2,186,757 $2,169,329
Less: intangible assets 629 1,104 1,395
Total average tangible assets $2,286,369 $2,185,653 $2,167,934
---------- ---------- ----------
Total average equity $231,769 $183,304 $162,795
Less: intangible assets 629 1,104 1,395
Total average tangible equity $231,140 $182,200 $161,400
-------- -------- --------
Credit Analysis
Net charge-offs year-to-date $(139) $5,224 $1,517
Net charge-offs to average loans (annualized) (0.04)% 0.41% 0.49%
Loan loss provision year-to-date $(735) $3,188 $953
Allowance to loans at end of period 1.48% 1.54% 1.76%
Nonperforming loans $26,220 $27,672 $35,208
Other real estate owned 6,369 6,860 10,850
Total nonperforming assets $32,589 $34,532 $46,058
------- ------- -------
Restructured loans (accruing) $24,537 $25,137 $41,170
Nonperforming loans to loans at end of period 2.00% 2.12% 2.88%
Nonperforming assets to total assets 1.41% 1.52% 2.09%
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) 04/24/14
------------------------------------------- ---------- --------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Three Months Ended
March 31,
---------
(Dollars in thousands, except per share data) 2014 2013
-------------------------------------------- ---- ----
Interest on securities:
Taxable $3,434 $3,184
Nontaxable 12 18
Interest and fees on loans 13,798 14,027
Interest on federal funds sold and other investments 268 228
--- ---
Total Interest Income 17,512 17,457
Interest on deposits 194 208
Interest on time certificates 407 532
Interest on borrowed money 690 717
--- ---
Total Interest Expense 1,291 1,457
----- -----
Net Interest Income 16,221 16,000
Provision for loan losses (735) 953
---- ---
Net Interest Income After Provision for Loan Losses 16,956 15,047
Noninterest income:
Service charges on deposit accounts 1,507 1,551
Trust income 671 676
Mortgage banking fees 661 1,114
Brokerage commissions and fees 379 425
Marine finance fees 254 272
Interchange income 1,403 1,264
Other deposit based EFT fees 98 98
Other 585 531
--- ---
5,558 5,931
Securities gains, net 17 25
--- ---
Total Noninterest Income 5,575 5,956
Noninterest expenses:
Salaries and wages 7,624 7,470
Employee benefits 2,182 2,223
Outsourced data processing costs 1,695 1,498
Telephone / data lines 293 285
Occupancy 1,838 1,755
Furniture and equipment 571 561
Marketing 813 449
Legal and professional fees 941 796
FDIC assessments 386 717
Amortization of intangibles 196 195
Asset dispositions expense 128 290
Net loss on other real estate owned and repossessed assets 53 567
Other 2,063 2,153
----- -----
Total Noninterest Expenses 18,783 18,959
Income Before Income Taxes 3,748 2,044
Income taxes (benefit) 1,449 0
----- ---
Net Income 2,299 2,044
Preferred stock dividends and accretion on preferred stock discount - 937
--- ---
Net Income Available to Common Shareholders $2,299 $1,107
------ ------
Per share of common stock:
Net income diluted $0.09 $0.06
Net income basic 0.09 0.06
Cash dividends declared 0.00 0.00
Average diluted shares outstanding 25,656,775 18,925,215
Average basic shares outstanding 25,489,630 18,789,428
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) 04/24/14
------------------------------------- ---------- --------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
March 31, December 31, March 31,
(Dollars in thousands, except share data) 2014 2013 2013
---------------------------------------- ---- ---- ----
Assets
Cash and due from banks $44,984 $48,561 $34,982
Interest bearing deposits with other banks 173,794 143,063 192,069
------- ------- -------
Total Cash and Cash Equivalents 218,778 191,624 227,051
Securities:
Available for sale (at fair value) 658,512 641,611 649,196
Loans available for sale 11,038 13,832 24,206
Loans, net of deferred costs 1,312,456 1,304,207 1,223,810
Less: Allowance for loan losses (19,472) (20,068) (21,540)
------- ------- -------
Net Loans 1,292,984 1,284,139 1,202,270
Bank premises and equipment, net 35,057 34,505 34,620
Other real estate owned 6,369 6,860 10,850
Other intangible assets 522 718 1,305
Other assets 92,732 95,651 52,551
------ ------ ------
$2,315,992 $2,268,940 $2,202,049
---------- ---------- ----------
Liabilities and Shareholders' Equity
Liabilities
Deposits
Demand deposits (noninterest bearing) $513,925 $464,006 $453,144
NOW 504,698 540,288 482,913
Savings deposits 202,170 192,491 177,213
Money market accounts 337,408 331,184 341,216
Other time certificates 148,971 154,743 175,934
Brokered time certificates 9,619 9,776 10,169
Time certificates of $100,000 or more 103,004 113,557 121,575
------- ------- -------
Total Deposits 1,819,795 1,806,045 1,762,164
Federal funds purchased and securities sold under
agreements to repurchase, maturing within 30 days 156,136 151,310 161,678
Borrowed funds 50,000 50,000 50,000
Subordinated debt 53,610 53,610 53,610
Other liabilities 8,069 9,371 7,892
----- ----- -----
2,087,610 2,070,336 2,035,344
Shareholders' Equity
Preferred stock - Series A 0 0 49,058
Common stock 2,599 2,364 9,485
Additional paid in capital 301,918 277,290 222,940
Accumulated deficit (68,396) (70,695) (117,504)
Treasury stock (39) (11) (25)
--- --- ---
236,082 208,948 163,954
Accumulated other comprehensive gain (loss), net (7,700) (10,344) 2,751
------ ------- -----
Total Shareholders' Equity 228,382 198,604 166,705
------- ------- -------
$2,315,992 $2,268,940 $2,202,049
---------- ---------- ----------
Common Shares Outstanding 25,984,488 23,637,434 18,970,005
Note: The balance sheet at December 31, 2013 has been derived from the audited financial statements at that date.
CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited) 04/24/14
-------------------------------------- ---------- --------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
QUARTERS
--------
2014 2013
---- ----
(Dollars in thousands, except per share data) First Fourth Third Second First
-------------------------------------------- ----- ------ ----- ------ -----
Net income (loss) $2,299 $1,850 $45,141 $2,954 $2,044
Operating Ratios
Return on average assets-GAAP basis (2),(3),(5) 0.41% 0.33% 8.32% 0.54% 0.38%
Return on average tangible assets (2),(3),(4) 0.43 0.35 8.34 0.57 0.41
Return on average shareholders' equity-GAAP basis (2),(3),(5) 4.02 3.10 106.55 7.19 5.09
Efficiency ratio (6) 84.30 81.92 78.05 81.05 81.45
Noninterest income to total revenue 25.52 26.82 26.58 28.22 27.04
Net interest margin (1),(2) 3.07 3.08 3.25 3.12 3.15
Average equity to average assets 10.13 10.55 7.80 7.56 7.50
Credit Analysis
Net charge-offs (recoveries) $(139) $838 $842 $2,027 $1,517
Net charge-offs to average loans (recoveries) (0.04)% 0.26% 0.26% 0.64% 0.49%
Loan loss provision $(735) $490 $1,180 $565 $953
Allowance to loans at end of period 1.48% 1.54% 1.62% 1.59% 1.76%
Restructured loans (accruing) $24,537 $25,137 $25,509 $29,612 $41,170
Nonperforming loans $26,220 $27,672 $28,724 $33,266 $35,208
Other real estate owned 6,369 6,860 5,589 10,063 10,850
Nonperforming assets $32,589 $34,532 $34,313 $43,329 $46,058
------- ------- ------- ------- -------
Nonperforming loans to loans at end of period 2.00% 2.12% 2.27% 2.63% 2.88%
Nonperforming assets to total assets 1.41 1.52 1.60 1.98 2.09
Per Share Common Stock
Net income (loss) diluted-GAAP basis (7) $0.09 $0.03 $2.31 $0.11 $0.06
Net income (loss) basic-GAAP basis (7) 0.09 0.03 2.35 0.11 0.06
Cash dividends declared (7) 0.00 0.00 0.00 0.00 0.00
Book value per share common (7) 8.79 8.40 8.12 5.89 6.20
Average Balances
Total average assets $2,286,998 $2,245,155 $2,153,830 $2,178,242 $2,169,329
Less: Intangible assets 629 813 1,009 1,205 1,395
Total average tangible assets $2,286,369 $2,244,342 $2,152,821 $2,177,038 $2,167,934
---------- ---------- ---------- ---------- ----------
Total average equity $231,769 $236,950 $168,078 $164,747 $162,795
Less: Intangible assets 629 813 1,009 1,205 1,395
Total average tangible equity $231,140 $236,137 $167,069 $163,541 $161,400
----------------------------- -------- -------- -------- -------- --------
(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) Excluding the income tax benefit related to the reversal of the valuation allowance for deferred tax assets and reflecting
tax provisioning of $1,351 for the third quarter 2013, adjusted return on average assets and adjusted return on average shareholder's
equity for the third quarter was 0.40 percent and 5.07 percent, respectively.
(6) 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).
(7) Calculated based on total shares outstanding subsequent to the 5/1 reverse stock split.
March 31, December 31, March 31,
SECURITIES 2014 2013 2013
---------- ---- ---- ----
U.S. Treasury and U.S. Government Agencies $100 $100 $1,202
Mortgage-backed 619,951 602,568 638,571
Collateralized loan obligations 32,215 32,179 -
Obligations of states and political subdivisions 6,246 6,764 7,885
Other securities - - 1,538
Securities Available for Sale $658,512 $641,611 $649,196
-------- -------- --------
March 31, December 31, March 31,
LOANS 2014 2013 2013
----- ---- ---- ----
Construction and land development $67,197 $67,450 $62,851
Real estate mortgage 1,121,027 1,113,128 1,052,766
Installment loans to individuals 44,601 44,713 43,248
Commercial and financial 79,401 78,636 64,752
Other loans 230 280 193
--- --- ---
Total Loans $1,312,456 $1,304,207 $1,223,810
---------- ---------- ----------
AVERAGE BALANCES (Unaudited) 04/24/14
---------------- ---------- --------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
QUARTER Percent Change vs.
-------
2014 2013 4th Qtr 1st Qtr
----
(Dollars in thousands) First Fourth Third Second First 2013 2013
--------------------- ----- ------ ----- ------ ----- ---- ----
Assets
Earning assets:
Securities:
Taxable $653,646 $655,176 $664,103 $639,769 $646,184 (0.2)% 1.2%
Nontaxable 1,016 1,560 1,560 1,647 1,666 (34.9) (39.0)
----- ----- ----- ----- -----
Total Securities 654,662 656,736 665,663 641,416 647,850 (0.3) 1.1
Federal funds sold and other
investments 188,048 156,823 113,798 168,740 172,505 19.9 9.0
Loans, net 1,307,796 1,293,373 1,278,391 1,269,789 1,247,666 1.1 4.8
--------- --------- --------- --------- ---------
Total Earning Assets 2,150,506 2,106,932 2,057,852 2,079,945 2,068,021 2.1 4.0
Allowance for loan losses (20,205) (20,817) (20,206) (21,515) (22,018) (2.9) (8.2)
Cash and due from banks 37,186 40,836 35,810 34,279 34,706 (8.9) 7.1
Premises and equipment 34,731 34,750 34,834 35,121 34,516 (0.1) 0.6
Other assets 84,780 83,454 45,540 50,412 54,104 1.6 56.7
------ ------ ------ ------ ------
$2,286,998 $2,245,155 $2,153,830 $2,178,242 $2,169,329 1.9 5.4
---------- ---------- ---------- ---------- ----------
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
NOW $507,313 $483,569 $447,350 $461,005 $474,915 4.9% 6.8%
Savings deposits 197,300 190,558 185,918 180,915 170,502 3.5 15.7
Money market accounts 330,787 332,576 336,229 339,058 341,833 (0.5) (3.2)
Time deposits 270,215 282,543 289,408 302,110 311,945 (4.4) (13.4)
Federal funds purchased and
other short term borrowings 155,656 142,999 157,607 159,847 160,600 8.9 (3.1)
Other borrowings 103,610 103,610 103,610 103,610 103,610 0.0 0.0
------- ------- ------- ------- -------
Total Interest-Bearing Liabilities 1,564,881 1,535,855 1,520,122 1,546,545 1,563,405 1.9 0.1
Demand deposits (noninterest-bearing) 481,048 462,830 454,642 455,525 433,757 3.9 10.9
Other liabilities 9,300 9,520 10,988 11,425 9,372 (2.3) (0.8)
----- ----- ------ ------ -----
Total Liabilities 2,055,229 2,008,205 1,985,752 2,013,495 2,006,534 2.3 2.4
Shareholders' equity 231,769 236,950 168,078 164,747 162,795 (2.2) 42.4
------- ------- ------- ------- -------
$2,286,998 $2,245,155 $2,153,830 $2,178,242 $2,169,329 1.9 5.4
---------- ---------- ---------- ---------- ----------
AVERAGE YIELDS / RATES (1) (Unaudited)
--------------------------- ----------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
QUARTER
-------
2014 2013
---- ----
(Dollars in thousands) First Fourth Third Second First
--------------------- ----- ------ ----- ------ -----
Assets
Earning assets:
Securities:
Taxable 2.10% 2.11% 1.93% 1.88% 1.97%
Nontaxable 6.69 6.41 6.67 6.55 6.37
---- ---- ---- ---- ----
Total Securities 2.11 2.12 1.95 1.89 1.98
Federal funds sold and other
investments 0.58 0.57 0.67 0.53 0.54
Loans, net 4.29 4.29 4.59 4.52 4.57
---- ---- ---- ---- ----
Total Earning Assets 3.31 3.33 3.52 3.39 3.43
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
NOW 0.08 0.08 0.08 0.09 0.10
Savings deposits 0.05 0.05 0.05 0.05 0.06
Money market accounts 0.08 0.09 0.08 0.08 0.08
Time deposits 0.61 0.62 0.64 0.67 0.69
Federal funds purchased and
other short term borrowings 0.17 0.17 0.17 0.18 0.21
Other borrowings 2.44 2.44 2.44 2.45 2.48
---- ---- ---- ---- ----
Total Interest-Bearing Liabilities 0.33 0.35 0.36 0.36 0.38
Interest expense as a % of earning assets 0.24 0.25 0.26 0.27 0.29
Net interest income as a % of earning assets 3.07 3.08 3.25 3.12 3.15
(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.
INTEREST INCOME / EXPENSE (1) (Unaudited)
----------------------------- ----------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
QUARTER Percent Change vs.
-------
2014 2013 4th Qtr 1st Qtr
---- ----
(Dollars in thousands) First Fourth Third Second First 2013 2013
--------------------- ----- ------ ----- ------ ----- ---- ----
Assets
Earning assets:
Securities:
Taxable $3,434 $3,452 $3,212 $3,008 $3,184 (0.5)% 7.9%
Nontaxable 17 25 26 27 27 (32.0) (37.0)
--- --- --- --- ---
Total Securities 3,451 3,477 3,238 3,035 3,211 (0.7) 7.5
Federal funds sold and other
investments 268 224 192 224 228 (19.6) 17.5
Loans, net 13,849 13,974 14,804 14,312 14,073 (0.9) (1.6)
------ ------ ------ ------ ------
Total Earning Assets 17,568 17,675 18,234 17,571 17,512 (0.6) 0.3
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
NOW 102 96 93 100 112 6.3 (8.9)
Savings deposits 24 26 25 24 26 (7.7) (7.7)
Money market accounts 68 74 69 67 70 (8.1) (2.9)
Time deposits 407 444 470 501 532 (8.3) (23.4)
Federal funds purchased and
other short term borrowings 66 62 68 73 83 6.5 (20.5)
Other borrowings 624 637 637 634 634 (2.0) (1.6)
--- --- --- --- ---
Total Interest-Bearing Liabilities 1,291 1,339 1,362 1,399 1,457 (3.6) (11.4)
----- ----- ----- ----- -----
Net interest income 16,277 16,336 16,872 16,172 16,055 (0.4) 1.4
------ ------ ------ ------ ------
(1) On a fully taxable equivalent basis. Fees on loans have been included in interest on loans.
CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited) 04/24/14
-------------------------------------- ---------- --------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2014 2013
---- ----
(Dollars in thousands) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter
--------------------- ------------- -------------- ------------- -------------- -------------
Customer Relationship Funding (Period End)
Demand deposits (noninterest bearing)
Commercial $291,221 $261,938 $254,373 $260,325 $246,849
Retail 173,698 159,117 155,281 163,551 167,516
Public funds 34,636 32,971 27,002 29,487 26,166
Other 14,370 9,980 16,293 15,154 12,613
513,925 464,006 452,949 468,517 453,144
NOW accounts
Commercial 41,281 43,241 35,029 35,714 39,303
Retail 329,226 324,583 305,055 308,390 307,545
Public funds 134,191 172,464 100,785 108,965 136,065
------------
504,698 540,288 440,869 453,069 482,913
Total Transaction Accounts
Commercial 332,501 305,179 289,402 296,039 286,152
Retail 502,924 483,700 460,336 471,941 475,061
Public funds 168,828 205,435 127,787 138,452 162,231
Other 14,370 9,980 16,293 15,154 12,613
1,018,623 1,004,294 893,818 921,586 936,057
Savings accounts 202,170 192,491 187,181 184,219 177,213
Money market accounts
Commercial 109,158 100,601 107,767 109,938 111,580
Retail 221,762 221,062 217,176 216,370 220,555
Public funds 6,488 9,521 9,735 9,639 9,081
------------
337,408 331,184 334,678 335,947 341,216
Time certificates of deposit 261,594 278,076 283,233 296,857 307,678
------- ------- -------
Total Deposits $1,819,795 $1,806,045 $1,698,910 $1,738,609 $1,762,164
========== ========== ========== ========== ==========
Sweep repurchase agreements $156,136 $151,310 $134,338 $160,934 $161,678
======== ======== ======== ======== ========
Total core customer funding (1) $1,714,337 $1,679,279 $1,550,015 $1,602,686 $1,616,164
========== ========== ========== ========== ==========
(1) Total deposits and sweep repurchase agreements, excluding certificates of deposits.
QUARTERLY TRENDS - LOANS AT END OF PERIOD (Dollars in Millions) 04/24/14
-------------------------------------------------------------- --------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2014 2013
---- ----
1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
------- ------- ------- ------- -------
Installment loans to individuals
Automobile and trucks $6.2 $6.6 $7.1 $7.5 $7.8
Marine loans 20.8 20.2 21.3 16.7 15.4
Other 17.6 17.9 18.8 20.1 20.0
---- ---- ---- ---- ----
44.6 44.7 47.2 44.3 43.2
Construction and land development to individuals
Lot loans 13.3 12.9 14.7 15.5 16.6
Construction 24.4 21.3 19.7 20.7 20.8
---- ---- ---- ---- ----
37.7 34.2 34.4 36.2 37.4
Residential real estate
Adjustable 392.5 391.9 378.4 372.6 365.8
Fixed rate 89.8 91.1 94.7 97.5 98.2
Home equity mortgages 60.6 62.0 61.8 62.2 61.3
Home equity lines 49.7 47.7 47.7 49.1 49.3
---- ---- ---- ---- ----
592.6 592.7 582.6 581.4 574.6
----- ----- ----- ----- -----
TOTAL CONSUMER 674.9 671.6 664.2 661.9 655.2
----- ----- ----- ----- -----
Commercial & financial 79.4 78.6 70.8 65.2 64.8
Construction and land development for commercial
Residential
Single family residences 1.8 2.0 - - -
Single family land and lots 4.7 4.9 4.9 5.0 4.9
Townhomes 0.5 - - - -
Multifamily 3.6 3.7 3.8 3.9 3.9
--- --- --- --- ---
10.6 10.6 8.7 8.9 8.8
Commercial
Office buildings - - 1.6 1.6 1.1
Retail trade 2.9 7.7 1.8 1.8 -
Land 4.4 4.9 7.3 7.2 7.8
Healthcare 7.1 5.4 4.7 2.9 3.3
Churches and educational facilities 1.1 3.8 4.0 2.5 1.2
Lodging 3.4 0.9 0.3 - -
18.9 22.7 19.7 16.0 13.4
---- ---- ---- ---- ----
Total construction and land development 29.5 33.3 28.4 24.9 22.2
Commercial real estate
Office buildings 120.0 118.7 118.2 112.0 112.5
Retail trade 142.0 130.6 128.9 135.5 122.2
Industrial 76.7 81.1 79.6 83.3 73.4
Healthcare 44.1 45.5 38.8 42.1 39.4
Churches and educational facilities 26.9 25.3 24.2 26.4 26.9
Recreation 2.4 2.5 2.5 2.6 2.6
Multifamily 17.2 16.8 6.2 9.5 8.5
Mobile home parks 1.8 1.9 1.9 1.9 2.0
Lodging 16.9 17.1 17.3 17.5 18.0
Restaurant 3.7 3.7 3.8 3.5 3.6
Agricultural 4.7 7.0 7.2 7.1 5.9
Convenience stores 22.0 20.8 21.0 20.2 20.2
Marina 20.6 21.3 21.5 20.9 21.1
Other 29.4 28.1 27.9 31.1 25.1
---- ---- ---- ---- ----
528.4 520.4 499.0 513.6 481.4
----- ----- ----- ----- -----
TOTAL COMMERCIAL 637.3 632.3 598.2 603.7 568.4
----- ----- ----- ----- -----
Other 0.2 0.3 0.5 0.3 0.2
--- --- --- --- ---
$1,312.4 $1,304.2 $1,262.9 $1,265.9 $1,223.8
======== ======== ======== ======== ========
QUARTERLY TRENDS - INCREASE (DECREASE) IN LOANS BY QUARTER (Dollars in Millions) 04/24/14
------------------------------------------------------------------------------- --------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2014 2013
---- ----
1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
------- ------- ------- ------- -------
Installment loans to individuals
Automobile and trucks $(0.4) $(0.5) $(0.4) $(0.3) $ -
Marine loans 0.6 (1.1) 4.6 1.3 (3.0)
Other (0.3) (0.9) (1.3) 0.1 (0.7)
---- ---- ---- --- ----
(0.1) (2.5) 2.9 1.1 (3.7)
Construction and land development to individuals
Lot loans 0.4 (1.8) (0.8) (1.1) (0.1)
Construction 3.1 1.6 (1.0) (0.1) (1.4)
--- --- ---- ---- ----
3.5 (0.2) (1.8) (1.2) (1.5)
Residential real estate
Adjustable 0.6 13.5 5.8 6.8 4.8
Fixed rate (1.3) (3.6) (2.8) (0.7) (0.8)
Home equity mortgages (1.4) 0.2 (0.4) 0.9 3.3
Home equity lines 2.0 - (1.4) (0.2) (2.1)
--- --- ---- ---- ----
(0.1) 10.1 1.2 6.8 5.2
---- ---- --- --- ---
TOTAL CONSUMER 3.3 7.4 2.3 6.7 -
--- --- --- --- ---
Commercial & financial 0.8 7.8 5.6 0.4 2.9
Construction and land development for commercial
Residential
Single family residences (0.2) 2.0 - - -
Single family land and lots (0.2) - (0.1) 0.1 (0.7)
Townhomes 0.5 - - - -
Multifamily (0.1) (0.1) (0.1) - (0.4)
---- ---- ---- --- ----
(0.0) 1.9 (0.2) 0.1 (1.1)
Commercial
Office buildings - (1.6) - 0.5 1.1
Retail trade (4.8) 5.9 - 1.8 -
Land (0.5) (2.4) 0.1 (0.6) (1.8)
Healthcare 1.7 0.7 1.8 (0.4) 1.5
Churches and educational facilities (2.7) (0.2) 1.5 1.3 0.7
Lodging 2.5 0.6 0.3 - -
(3.8) 3.0 3.7 2.6 1.5
---- --- --- --- ---
Total construction and land development (3.8) 4.9 3.5 2.7 0.4
Commercial real estate
Office buildings 1.3 0.5 6.2 (0.5) 7.8
Retail trade 11.4 1.7 (6.6) 13.3 (4.5)
Industrial (4.4) 1.5 (3.7) 9.9 0.8
Healthcare (1.4) 6.7 (3.3) 2.7 (1.3)
Churches and educational facilities 1.6 1.1 (2.2) (0.5) (1.7)
Recreation (0.1) - (0.1) - (0.1)
Multifamily 0.4 10.6 (3.3) 1.0 (0.5)
Mobile home parks (0.1) - - (0.1) -
Lodging (0.2) (0.2) (0.2) (0.5) (0.7)
Restaurant - (0.1) 0.3 (0.1) 0.1
Agricultural (2.3) (0.2) 0.1 1.2 (0.2)
Convenience stores 1.2 (0.2) 0.8 - (0.3)
Marina (0.7) (0.2) 0.6 (0.2) (0.1)
Other 1.3 0.2 (3.2) 6.0 (4.7)
--- --- ---- --- ----
8.0 21.4 (14.6) 32.2 (5.4)
--- ---- ----- ---- ----
TOTAL COMMERCIAL 5.0 34.1 (5.5) 35.3 (2.1)
--- ---- ---- ---- ----
Other (0.1) (0.2) 0.2 0.1 (0.2)
---- ---- --- --- ----
$8.2 $41.3 $(3.0) $42.1 $(2.3)
==== ===== ===== ===== =====
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SOURCE Seacoast Banking Corporation of Florida
