SEACOAST BANKING CORPORATION OF FLORIDA 
By STUART, Fla., Jan. 24, 2013 /PRNewswire/ --
Profitability improvement plan on target
-- Core costs down $625,000 in the fourth quarter, comparable with core
cost reductions of $727,000 in the third quarter (versus second quarter
2012)
-- Targeting $7.4 million in reduced expenses in 2013
Continued acceleration in new households, deposit and fee income growth
-- Total households increase 9.4 percent year over year
-- Strong growth in noninterest bearing deposits of 28.8 percent over prior
year
-- Fee based revenues up 14.9 percent year over year for the fourth quarter
Credit quality improvements continue in the quarter
-- Nonperforming loans decline by 7.9 percent compared to last quarter
-- Other real estate owned down 43.2 percent compared to 2011
Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCF), today reported 2012 fourth quarter net income of $240,000, compared to $2.5 million for the fourth quarter of 2011. Net loss of $710,000 for the full year compared to net income of $6.7 million for the year 2011. Net loss available to common shareholders for the fourth quarter and the year 2012 totaled, respectively, $697,000 or $0.01 diluted earnings per share (DEPS), and $4.5 million or $0.05 DEPS. These figures compare to net income of $0.02 DEPS and $0.03 DEPS a year ago for the same periods, respectively.
(Logo: http://photos.prnewswire.com/prnh/20050916/SEACOASTLOGO )
Net pre-provision income, excluding securities gains, the change in fair value of loans available for sale, branch consolidation and severance costs and loss on sale of other real estate owned ("OREO") and other assets was $2.9 million for the quarter. "Our growth initiatives continued to perform well during the quarter and for the entire year," said Dennis S. Hudson, III, Chairman and Chief Executive Officer. "Loan growth began to accelerate this quarter as a result of our expanded business loan production teams, which helped us maintain a stable net interest margin."
During 2012, we added 11 commercial loan officers, including 6 in the second half of 2012, to improve new loan production. In the fourth quarter 2012, new commercial loan production totaled $49.6 million, compared to $25.1 million last quarter. We expect to see continued growth in overall loan production throughout 2013 as additional resources are added and we further build upon our business household growth initiatives. This will include making further investments in revenue producing commercial and mortgage loan officers in 2013.
Net income for the year 2012 was impacted by our decision at mid-year to accelerate the reduction of problem loans and foreclosed properties. We took this action in part to take advantage of improving market conditions. These actions continued in the current quarter with $4.6 million in charge offs which were offset with $2.4 million in recoveries related to loans previously charged off. Shortly after year-end a problem commercial loan, which was moved last quarter to available for sale and valued based on market bids at $10.3 million was sold for a net loss (reflected in the quarter) of $1.2 million. Foreclosed properties were reduced by 43.2 percent during the year and nonperforming loans declined by 7.9 percent compared to the last quarter.
In addition, we took final charges totaling $490,000 during the current quarter related to branch consolidation and severance costs associated with our Profitability Improvement Plan for 2013 which was announced last quarter. This plan is on target and is expected to reduce our core overhead structure by approximately $4.9 million annually in 2013. We expect our losses on OREO and asset disposition expense will be reduced by $2.8 million in 2013 and we also expect the provision for loan losses to be significantly lower in 2013.
Highlights for the quarter:
-- In the fourth quarter loans increased $23.6 million or 7.9 percent
annualized reflecting improving commercial and consumer loan production,
as well as, continued strong residential mortgage production;
-- Mortgage banking fees for the quarter increased by $350,000 or 51.5%
compared to 2011 and totaled $3.7 million for the year compared to $2.1
million for last year, up 73.4%;
-- Interchange fees and service charges on deposit accounts grew by 21.4%
and 4.9%, respectively, compared with last year's fourth quarter,
reflecting strong growth in our core customer franchise;
-- Ending noninterest bearing demand deposits increased by $94.5 million or
28.8 percent for the year and 13.4 percent annualized linked quarter on
continued strong core retail and commercial account growth;
-- Nonperforming loans declined by 7.9 percent compared to last quarter and
nonperforming assets to total assets declined to 2.43 percent from 2.56
percent for the third quarter 2012;
-- Savings, NOW and money market deposits increased $91.2 million linked
quarter or 9.8 percent, in part reflecting a seasonal increase in local
municipalities' deposits, which are up $95.9 million compared to a year
ago; and
-- The improved deposit mix resulted in a decline of 6 and 36 basis points
in the cost of deposits compared to the third quarter and fourth quarter
a year ago, respectively.
Over the past several years we have implemented focused tactical initiatives designed to produce strong organic growth of our core customer account franchise. Since the fourth quarter 2010, we have increased total core customer funding by $377 million or 31.4 percent and improved our funding mix by increasing noninterest bearing deposits to 24.0 percent of total deposits from 17.7 percent at year end 2010. Total core customer funding increased by 13.8 percent over the past year.
2012 vs 2011 2012 vs 2010
Change Change
------ ------
(Dollars in thousands) 2012 2011 2010
Fourth Fourth Fourth
Quarter Quarter Quarter
--- ------- ------- -------
Customer Relationship Funding
Demand deposits (noninterest bearing) $422,833 $328,356 $289,621 28.8% 46.0%
NOW 509,371 469,631 401,005 8.5 27.0
Savings deposits 164,956 133,578 113,082 23.5 45.9
Money market accounts 343,915 319,152 298,538 7.8 15.2
Time certificates of deposit 317,886 468,024 534,982 (32.1) (40.6)
------- ------- -------
Total Deposits $1,758,961 $1,718,741 $1,637,228 2.3 7.4
Sweep repurchase agreements $136,803 $136,252 $98,213 0.4 39.3
Total core customer funding (1) $1,577,878 $1,386,969 $1,200,459 13.8 31.4
Demand deposit mix (noninterest bearing) 24.0% 19.1% 17.7%
Total checking and savings deposit mix (2) 81.9% 72.8% 67.3%
----------------------------------------- ---- ---- ----
(1) Total deposits and sweep repurchase agreements, excluding certificates of deposits.
(2) Total deposits less time certificates.
Seacoast has maintained strong regulatory capital ratios over the past two years. The estimated total risk-based capital ratio at year-end increased to 18.3 percent, up from 17.8 percent at year end 2010. The estimated tangible common equity ratio was 5.3 percent at year-end 2012. Recovering the deferred tax asset valuation allowance would increase this ratio to 7.2 percent.
Average earning assets for the fourth quarter are up $35.8 million from the prior year with average loans up $31.7 million on retained loan production of $287 million over the last twelve months. New loan growth has been concentrated in smaller average balance commercial loans and residential home purchase transactions consistent with our concentration management objectives. Offsetting loan growth has been nonperforming loan resolutions, refinancing and early payoffs as a result of the low rate environment. Total loans increased to $1.226 billion at year-end 2012, up $18.0 million compared to the prior year and including available for sale loans increased by $47.2 million compared to a year ago.
Total revenue (excluding securities gains and change in fair value of loans available for sale) for year was $86.3 million, up $1.1 million as a result of increased loan growth, lower funding costs and improved fees as a result of retail and small business deposit account growth, and improvements in loan production. Noninterest income (excluding securities gains) was up $726,000 or 14.9 percent in the fourth quarter compared with a year ago and was up for the full year by $3.1 million or 16.9 percent compared with 2011.
(Dollars in thousands) Q-4 Q-3 Q-2 Q-1 Q-4
2012 2012 2012 2012 2011
--- ---- ---- ---- ---- ----
Noninterest Income:
Service charges on deposit accounts $1,677 $1,620 $1,487 $1,461 $1,599
Trust income 592 550 564 573 530
Mortgage banking fees 1,030 1,155 902 623 680
Brokerage commissions and fees 292 247 298 234 258
Marine finance fees 258 279 244 330 333
Interchange income 1,157 1,119 1,154 1,071 953
Other deposit based EFT fees 83 70 84 99 78
Other 520 639 486 546 452
--- --- --- --- ---
Total 5,609 5,679 5,219 4,937 4,883
Change in fair value of loans available for sale (1,238) 0 0 0 0
Securities gains 582 48 3,615 3,374 1,083
--- --- ----- ----- -----
$4,953 $5,727 $8,834 $8,311 $5,966
====== ====== ====== ====== ======
Over the last three years we have been investing in people to expand and help drive further increases in revenues from mortgage banking. Mortgage banking fees increased $1.6 million or 73.4 percent for the year 2012 compared to 2011.
Additionally, investments were made in commercial relationship managers in 2012 to help accelerate our commercial loan production in 2013 and improve revenue growth in the last half of 2012.
Revenue earned from service charges on deposits, and interchange income increased over the prior year as a result of increased households. Retail household growth has been a focus over the past several years and more recently the addition of new commercial relationship managers were added for increased loan production and has also aided in efforts to attract new commercial deposit accounts. Household acquisition for 2012 included 6,585 new personal retail checking relationships, an increase of 9.4 percent from 2011. Likewise, new commercial business checking deposit relationships increased by 21.9 percent compared with one year ago. Along with the new relationships, our programs have improved market share, increased average services per household and decreased customer attrition.
Credit quality continued to improve this quarter with nonperforming loans declining $3.5 million from the third quarter 2012 and over $4.9 million of loans were moved to other real estate owned which increased by $3.0 million. Nonperforming assets totaled $52.8 million at quarter end, up $3.4 million compared to a year earlier but down $496,000 from last quarter. The ratio of nonaccrual loans and accruing loans delinquent 90 days or more to total loans at December 31, 2012 was 3.34 percent down from 3.70 percent at September 30, 2012. Early stage delinquencies (accruing loans 30-89 days past due) remained nominal at 0.29 percent of loans outstanding. These improvements together with lower net charge offs resulted in a lower allowance loan losses of 1.80 percent of total loans for the fourth quarter 2012 compared to 1.92 percent last quarter.
Core operating expenses (total noninterest expenses less losses on other real estate owned, expenses related to branch consolidation and organizational changes and other asset disposition expenses) have been managed lower throughout the year as noted in the table below. Noninterest expenses for 2012 totaled $82.5 million compared to $77.8 million, an increase of $4.7 million. This was due to added personnel related to growth initiatives, increased health insurance expense, severance related to organizational changes, branch consolidation expenses and outsourced data processing costs. Core operating expenses were $18.9 million in the fourth quarter or an annual run rate of $75.6 million.
The organizational changes and branch closures completed during the third and fourth quarters together with the other components of our profitability implementation plan announced last quarter are expected to reduce core operating expenses in 2013.
Core operating expense trends are presented in the table below:
(Dollars in thousands) Q-4 Q-3 Q-2 Q-1 Q-4
2012 2012 2012 2012 2011
---- ---- ---- ---- ----
Noninterest Expense:
Salaries and wages $7,259 $7,442 $7,435 $7,055 $6,889
Employee benefits 1,860 1,924 1,916 2,010 1,447
Outsourced data processing costs 1,904 1,923 1,834 1,721 1,677
Telephone / data lines 293 299 297 289 285
Occupancy expense 1,896 1,876 1,943 1,882 1,795
Furniture and equipment expense 585 556 607 495 525
Marketing expense 707 785 677 926 947
Legal and professional fees 1,114 1,122 1,637 1,776 1,299
FDIC assessments 697 695 707 706 679
Amortization of intangibles 195 196 196 201 212
Other 2,428 2,018 2,314 2,163 2,264
----- ----- ----- ----- -----
Total Core Operating Expense 18,938 18,836 19,563 19,224 18,019
Severance and organizational changes 84 839 0 0 412
Branch consolidation 407 232 0 0 0
Recovery of prior legal fees 0 (500) 0 0 0
Net loss on OREO 157 561 790 1,959 1,254
Asset dispositions expense 200 364 368 527 275
--- --- --- --- ---
Total $19,785 $20,332 $20,721 $21,710 $19,960
======= ======= ======= ======= =======
The net interest margin was up 5 basis points linked quarter to 3.22 percent, but was lower by 20 basis points compared to the fourth quarter of 2011. The margin was aided by lower costs for interest bearing liabilities increased and improved mix of earning assets, which was offset by lower asset yields caused by Federal Reserve actions to stimulate economic growth. In addition the net interest margin continues to be impacted by higher levels of overnight liquidity and short-term investments. The average cost of deposits decreased 6 basis points to 0.20 percent during the fourth quarter 2012, and the total cost of interest bearing liabilities decreased from 0.77 percent for the fourth quarter 2011 to 0.42 percent in the fourth quarter. The mix in deposits continues to improve, which strengthens the net interest margin, and is a result of our tactical activities designed to attract, onboard and retain new household relationships. Noninterest bearing demand deposits increased to 24.0 percent of total deposits from 19.1 percent a year ago and total transaction accounts and customer sweep repurchase agreements now account for more than half of total customer relationship funding.
The Company will host a conference call on Friday, January 25, 2013 at 9:00 a.m. (Eastern Time) to discuss its earnings results and business trends. Investors may call in (toll-free) by dialing (888) 517-2458 (access code: 6117222; leader: Dennis S. Hudson). Charts will be used during the conference call and may be accessed at Seacoast's website at www.seacoastbanking.net by selecting "Presentations" under the heading "Investor Services". A replay of the conference call will be available beginning the afternoon of January 25 by dialing (888) 843-7419 (domestic), using the passcode 6117222.
Alternatively, individuals may listen to the live webcast of the presentation by visiting the Company's website at www.seacoastbanking.net. The link to the live audio webcast is located in the subsection "Presentations" under the heading "Investor Services". Beginning the afternoon of January 25, 2013, an archived version of the webcast can be accessed from this same subsection of the website. This webcast will be archived and available for one year.
Seacoast, with approximately $2.1 billion in assets, is one of the largest independent commercial banking organizations in Florida. Seacoast has 34 offices in South and Central Florida and is headquartered on Florida's Treasure Coast, which is one of the wealthiest areas in the nation.
Cautionary Notice Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, ability to realized deferred tax assets, cost savings, enhanced revenues, economic and seasonal conditions in our markets, and improvements to reported earnings that may be realized from cost controls and for integration of banks that we have acquired, as well as statements with respect to Seacoast's objectives, expectations and intentions and other statements that are not historical facts. Actual results may differ from those set forth in the forward-looking statements.
Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance or achievements of Seacoast to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. You should not expect us to update any forward-looking statements.
You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "support", "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "further", "point to," "project," "could," "intend" or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the effects of future economic and market conditions, including seasonality; governmental monetary and fiscal policies, as well as legislative, tax and regulatory changes; changes in accounting policies, rules and practices; the risks of changes in interest rates on the level and composition of deposits, loan demand, liquidity and the values of loan collateral, securities, and interest sensitive assets and liabilities; interest rate risks, sensitivities and the shape of the yield curve; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market areas and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the Internet; and the failure of assumptions underlying the establishment of reserves for possible loan losses. The risks of mergers and acquisitions, include, without limitation: unexpected transaction costs, including the costs of integrating operations; the risks that the businesses will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; the potential failure to fully or timely realize expected revenues and revenue synergies, including as the result of revenues following the merger being lower than expected; the risk of deposit and customer attrition; any changes in deposit mix; unexpected operating and other costs, which may differ or change from expectations; the risks of customer and employee loss and business disruption, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures and solicitations of customers by competitors; as well as the difficulties and risks inherent with entering new markets.
All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2011 under "Special Cautionary Notice Regarding Forward-Looking Statements" and "Risk Factors", and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov.
FINANCIAL HIGHLIGHTS (Unaudited)
-------------------- ----------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Three Months Ended Twelve Months Ended
(Dollars in thousands, except share data) December 31, December 31,
------------ ------------
2012 2011 2012 2011
---- ---- ---- ----
Summary of Earnings
Net income (loss) $240 $2,548 $(710) $6,667
Net income (loss) available to common shareholders (697) 1,611 (4,458) 2,919
Net interest income (1) 16,254 17,020 64,990 67,059
Performance Ratios
Return on average assets-GAAP basis (2), (3) 0.05% 0.48% (0.03)% 0.32%
Return on average tangible assets (2), (3), (4) 0.07 0.51 (0.01) 0.35
Return on average shareholders' equity-GAAP basis (2), (3) 0.58 6.17 (0.43) 4.03
Net interest margin (1), (2) 3.22 3.42 3.22 3.42
Per Share Data
Net income (loss) diluted-GAAP basis $(0.01) $0.02 $(0.05) $0.03
Net income (loss) basic-GAAP basis (0.01) 0.02 (0.05) 0.03
Cash dividends declared 0.00 0.00 0.00 0.00
Increase/
December 31,
------------
2012 2011 (Decrease)
---- ---- ---------
Credit Analysis
Net charge-offs year-to-date $14,257 $14,153 0.7%
Net charge-offs to average loans 1.16% 1.16% 0.0
Loan loss provision year-to-date $10,796 $1,974 446.9
Allowance to loans at end of period 1.80% 2.12% (15.1)
Nonperforming loans $40,955 $28,526 43.6
Other real estate owned 11,887 20,946 (43.2)
Total non-performing assets $52,842 $49,472 6.8
------- -------
Restructured loans (accruing) $41,946 $71,611 (41.4)
Nonperforming assets to loans and other real
estate owned at end of period 4.27% 4.03% 6.0
Nonperforming assets to total assets 2.43% 2.31% 5.2
Selected Financial Data
Total assets $2,173,929 $2,137,375 1.7
Securities available for sale (at fair value) 643,050 648,362 (0.8)
Securities held for investment (at amortized cost) 13,818 19,977 (30.8)
Net loans 1,203,977 1,182,509 1.8
Deposits 1,758,961 1,718,741 2.3
Total shareholders' equity 165,546 170,077 (2.7)
Common shareholders' equity 116,800 122,580 (4.7)
Book value per share common 1.23 1.29 (4.7)
Tangible book value per share 1.73 1.77 (2.3)
Tangible common book value per share (5) 1.22 1.27 (3.9)
Average shareholders' equity to average assets 7.81% 8.01% (2.5)
Tangible common equity to tangible assets (5), (6) 5.31 5.63 (5.7)
Average Balances (Year-to-Date)
Total assets $2,117,075 $2,063,684 2.6
Less: intangible assets 1,889 2,708 (30.2)
Total average tangible assets $2,115,186 $2,060,976 2.6
---------- ----------
Total equity $165,381 $165,296 0.1
Less: intangible assets 1,889 2,708 (30.2)
Total average tangible equity $163,492 $162,588 0.6
-------- --------
(1) Calculated on a fully taxable equivalent basis using amortized cost.
(2) These ratios are stated on an annualized basis and are not necessarily indicative of future periods.
(3) The calculation of ROA and ROE do not include the mark-to-market unrealized gains (losses) because
the unrealized gains (losses) are not included in net income (loss).
(4) The Company believes that return on average assets and equity excluding the impacts of noncash amortization
expense on intangible assets is a better measurement of the Company's trend in earnings growth.
(5) The Company defines tangible common equity as total shareholders equity less preferred stock and intangible assets.
(6) The ratio of tangible common equity to tangible assets is a non-GAAP ratio used by the investment community to measure capital adequacy.
n/m = not meaningful
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
------------------------------------------- ----------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
(Dollars in thousands, except per share data) 2012 2011 2012 2011
-------------------------------------------- ---- ---- ---- ----
Interest on securities:
Taxable $3,130 $4,499 $13,964 $17,500
Nontaxable 12 17 80 140
Interest and fees on loans 14,438 15,351 58,290 62,355
Interest on federal funds sold and other investments 226 191 953 797
--- --- --- ---
Total Interest Income 17,806 20,058 73,287 80,792
Interest on deposits 275 531 1,522 2,371
Interest on time certificates 598 1,826 3,969 8,615
Interest on borrowed money 725 727 2,987 2,967
--- --- -----
Total Interest Expense 1,598 3,084 8,478 13,953
----- ----- ----- ------
Net Interest Income 16,208 16,974 64,809 66,839
Provision for loan losses 1,136 432 10,796 1,974
----- --- ------ -----
Net Interest Income After Provision for Loan Losses 15,072 16,542 54,013 64,865
Noninterest income:
Service charges on deposit accounts 1,677 1,599 6,245 6,262
Trust income 592 530 2,279 2,111
Mortgage banking fees 1,030 680 3,710 2,140
Brokerage commissions and fees 292 258 1,071 1,122
Marine finance fees 258 333 1,111 1,209
Interchange income 1,157 953 4,501 3,808
Other deposit based EFT fees 83 78 336 318
Other 520 452 2,191 1,375
--- --- ----- -----
5,609 4,883 21,444 18,345
Change in fair value of loan held for sale (1,238) 0 (1,238) 0
Securities gains, net 582 1,083 7,619 1,220
--- ----- ----- -----
Total Noninterest Income 4,953 5,966 27,825 19,565
Noninterest expenses:
Salaries and wages 7,342 7,301 29,935 27,288
Employee benefits 1,860 1,447 7,710 5,875
Outsourced data processing costs 1,904 1,677 7,382 6,583
Telephone / data lines 293 285 1,178 1,179
Occupancy 2,241 1,795 8,146 7,627
Furniture and equipment 647 525 2,319 2,291
Marketing 707 947 3,095 2,917
Legal and professional fees 1,114 1,299 5,241 6,137
FDIC assessments 697 679 2,805 3,013
Amortization of intangibles 195 212 788 847
Asset dispositions expense 200 275 1,459 2,281
Net loss on other real estate owned and repossessed assets 157 1,254 3,467 3,751
Other 2,428 2,264 9,023 7,974
----- ----- ----- -----
Total Noninterest Expenses 19,785 19,960 82,548 77,763
Income (Loss) Before Income Taxes 240 2,548 (710) 6,667
Provision for income taxes 0 0 0 0
--- --- --- ---
Net Income (Loss) 240 2,548 (710) 6,667
Preferred stock dividends and accretion on preferred stock discount 937 937 3,748 3,748
--- --- -----
Net Income (Loss) Available to Common Shareholders $(697) $1,611 $(4,458) $2,919
----- ------ ------- ------
Per share of common stock:
Net income (loss) diluted $(0.01) $0.02 $(0.05) $0.03
Net income (loss) basic (0.01) 0.02 (0.05) 0.03
Cash dividends declared 0.00 0.00 0.00 0.00
Average diluted shares outstanding 94,606,884 94,364,433 94,505,805 93,801,073
Average basic shares outstanding 93,909,930 93,570,748 93,743,787 93,511,983
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
------------------------------------- ----------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
December 31, December 31,
(Dollars in thousands, except share data) 2012 2011
---------------------------------------- ---- ----
Assets
Cash and due from banks $45,620 $41,136
Interest bearing deposits with other banks 129,367 125,945
------- -------
Total Cash and Cash Equivalents 174,987 167,081
Securities:
Available for sale (at fair value) 643,050 648,362
Held for investment (at amortized cost) 13,818 19,977
------ ------
Total Securities 656,868 668,339
Loans available for sale 36,021 6,795
Loans, net of deferred costs 1,226,081 1,208,074
Less: Allowance for loan losses (22,104) (25,565)
------- -------
Net Loans 1,203,977 1,182,509
Bank premises and equipment, net 34,465 34,227
Other real estate owned 11,887 20,946
Other intangible assets 1,501 2,289
Other assets 54,223 55,189
------ ------
$2,173,929 $2,137,375
---------- ----------
Liabilities and Shareholders' Equity
Liabilities
Deposits
Demand deposits (noninterest bearing) $422,833 $328,356
NOW 509,371 469,631
Savings deposits 164,956 133,578
Money market accounts 343,915 319,152
Other time certificates 182,495 244,886
Brokered time certificates 8,203 4,558
Time certificates of $100,000 or more 127,188 218,580
------- -------
Total Deposits 1,758,961 1,718,741
Federal funds purchased and securities sold under
agreements to repurchase, maturing within 30 days 136,803 136,252
Borrowed funds 50,000 50,000
Subordinated debt 53,610 53,610
Other liabilities 9,009 8,695
----- -----
2,008,383 1,967,298
Shareholders' Equity
Preferred stock - Series A 48,746 47,497
Common stock 9,484 9,469
Additional paid in capital 222,851 222,048
Accumulated deficit (118,611) (114,152)
Treasury stock (62) (13)
--- ---
162,408 164,849
Accumulated other comprehensive gain, net 3,138 5,228
----- -----
Total Shareholders' Equity 165,546 170,077
------- -------
$2,173,929 $2,137,375
---------- ----------
Common Shares Outstanding 94,837,170 94,686,801
Note: The balance sheet at December 31, 2011 has been derived from the audited financial statements at that date.
CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited)
------------------------------------- ----------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
QUARTERS
--------
2012 Last 12
----
(Dollars in thousands, except per share data) Fourth Third Second First Months
-------------------------------------------- ------ ----- ------ ----- ------
Net income $240 $447 $(2,335) $938 $(710)
Operating Ratios
Return on average assets-GAAP basis (2),(3) 0.05% 0.08% (0.44)% 0.18% (0.03)%
Return on average tangible assets (2),(3),(4) 0.07 0.11 (0.42) 0.20 (0.01)
Return on average shareholders' equity-GAAP basis (2),(3) 0.58 1.09 (5.56) 2.26 (0.43)
Net interest margin (1),(2) 3.22 3.17 3.17 3.33 3.22
Average equity to average assets 7.73 7.77 7.90 7.85 7.81
Credit Analysis
Net charge-offs $2,151 $2,416 $6,275 $3,415 $14,257
Net charge-offs to average loans 0.69% 0.79% 2.05% 1.13% 1.16%
Loan loss provision $1,136 $900 $6,455 $2,305 $10,796
Allowance to loans at end of period 1.80% 1.92% 2.02% 2.01%
Restructured loans (accruing) $41,946 44,179 54,842 57,665
Nonperforming loans $40,955 44,450 48,482 41,716
Other real estate owned 11,887 8,888 7,219 15,530
Nonperforming assets $52,842 $53,338 $55,701 $57,246
------- ------- ------- -------
Nonperforming assets to loans and other
real estate owned at end of period 4.27% 4.40% 4.53% 4.65%
Nonperforming assets to total assets 2.43 2.56 2.64 2.64
Nonaccrual loans and accruing loans 90 days or more
past due to loans outstanding at end of period 3.34 3.70 3.97 3.43
Per Share Common Stock
Net income (loss) diluted-GAAP basis $(0.01) $(0.01) $(0.03) $0.00 $(0.05)
Net income (loss) basic-GAAP basis (0.01) (0.01) (0.03) 0.00 $(0.05)
Cash dividends declared - - - - $ -
Book value per share common 1.23 1.25 1.24 1.30
Average Balances
Total assets $2,111,986 $2,096,694 $2,133,713 $2,126,186
Less: Intangible assets 1,596 1,793 1,988 2,184
Total average tangible assets $2,110,390 $2,094,901 $2,131,725 $2,124,002
---------- ---------- ---------- ----------
Total equity $163,341 $162,902 $168,457 $166,874
Less: Intangible assets 1,596 1,793 1,988 2,184
Total average tangible equity $161,745 $161,109 $166,469 $164,690
----------------------------- -------- -------- -------- --------
(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.
December 31, December 31,
SECURITIES 2012 2011
---------- ---- ----
Mortgage-backed
U.S. Treasury and U.S. Government Agencies $1,707 $1,724
Mortgage-backed 640,445 645,471
Obligations of states and political subdivisions 898 1,167
Other securities 0 0
--- ---
Securities Available for Sale 643,050 648,362
------- -------
Mortgage-backed 5,965 12,315
Obligations of states and political subdivisions 6,353 6,662
Other securities 1,500 1,000
----- -----
Securities Held for Investment 13,818 19,977
------ ------
Total Securities $656,868 $668,339
-------- --------
December 31, December 31,
LOANS 2012 2011
----- ---- ----
Construction and land development $60,736 $49,184
Real estate mortgage 1,056,159 1,054,599
Installment loans to individuals 46,930 50,611
Commercial and financial 61,903 53,105
Other loans 353 575
--- ---
Total Loans $1,226,081 $1,208,074
---------- ----------
AVERAGE BALANCES, YIELDS AND RATES (1) (Unaudited)
------------------------------------- ----------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2012 2011
---- ----
Fourth Quarter Third Quarter Fourth Quarter
-------------- ------------- --------------
Average Yield/ Average Yield/ Average Yield/
(Dollars in thousands) Balance Rate Balance Rate Balance Rate
--------------------- ------- ---- ------- ---- ------- ----
Assets
Earning assets:
Securities:
Taxable $604,412 2.07% $572,328 2.23% $614,939 2.93%
Nontaxable 1,670 4.31 1,972 6.49 2,591 4.17
----- ---- ----- ---- ----- ----
Total Securities 606,082 2.08 574,300 2.24 617,530 2.93
Federal funds sold and other
investments 162,599 0.55 209,461 0.46 147,017 0.52
Loans, net 1,241,711 4.64 1,223,313 4.68 1,210,028 5.05
--------- ---- --------- ---- --------- ----
Total Earning Assets 2,010,392 3.53 2,007,074 3.54 1,974,575 4.04
Allowance for loan losses (23,820) (24,807) (27,689)
Cash and due from banks 39,321 29,227 35,312
Premises and equipment 34,566 35,003 34,517
Other assets 51,527 50,197 68,751
------ ------ ------
$2,111,986 $2,096,694 $2,085,466
---------- ---------- ----------
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
NOW (2) $449,476 0.11% $419,007 0.15% $422,480 0.20%
Savings deposits 161,156 0.09 157,577 0.11 131,554 0.11
Money market accounts (2) 346,089 0.13 350,213 0.21 325,111 0.34
Time deposits 330,556 0.72 358,504 0.82 475,666 1.52
Federal funds purchased and
other short term borrowings 131,628 0.23 140,932 0.24 127,956 0.22
Other borrowings 103,610 2.50 103,610 2.57 103,610 2.50
------- ---- ------- ---- ------- ----
Total Interest-Bearing Liabilities 1,522,515 0.42 1,529,843 0.49 1,586,377 0.77
Demand deposits (noninterest-bearing) 416,482 394,467 326,215
Other liabilities 9,648 9,482 9,017
----- ----- -----
Total Liabilities 1,948,645 1,933,792 1,921,609
Shareholders' equity 163,341 162,902 163,857
------- ------- -------
$2,111,986 $2,096,694 $2,085,466
---------- ---------- ----------
Interest expense as a % of earning assets 0.32% 0.37% 0.62%
Net interest income as a % of earning assets 3.22 3.17 3.42
(1) On a fully taxable equivalent basis. All yields and rates have been computed on an annualized basis using amortized cost.
Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.
(2) Certain reclassifications have been made to prior years' presentations to conform to the current year presentation.
CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited)
------------------------------------- ----------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2012 2011
---- ----
(Dollars in thousands) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter
--------------------- -------------- ------------- -------------- ------------- --------------
Customer Relationship Funding (Period End)
Demand deposits (noninterest bearing) $422,833 $409,145 $393,681 $394,532 $328,356
NOW accounts 509,371 420,477 420,449 436,712 469,631
Money market accounts 343,915 348,275 346,191 330,409 319,152
Savings savings accounts 164,956 158,208 156,019 148,068 133,578
Time certificates of deposit 317,886 343,361 373,244 427,738 468,024
------- ------- ------- ------- -------
Total Deposits 1,758,961 1,679,466 1,689,584 1,737,459 1,718,741
Sweep repurchase agreements 136,803 122,393 139,489 149,316 136,252
Total core customer funding (1) 1,577,878 1,458,498 1,455,829 1,459,037 1,386,969
(1) Total deposits and sweep repurchase agreements, excluding certificates of deposits.
QUARTERLY TRENDS - LOANS AT END OF PERIOD (Dollars in Millions) (Unaudited)
-------------------------------------------------------------- ----------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2011 2012
---- ----
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
------- ------- ------- ------- ------- ------- ------- -------
Construction and land development
Residential
Condominiums $0.5 $ - $ - $ - $ - $ - $ - $ -
Townhomes - - - - - - - -
Single family residences - - - - - - - -
Single family land and lots 6.6 6.5 6.4 6.2 6.0 5.9 5.8 5.6
Multifamily 6.1 5.7 5.5 5.1 4.9 4.7 4.6 4.3
--- --- --- --- --- --- --- ---
13.2 12.2 11.9 11.3 10.9 10.6 10.4 9.9
Commercial
Office buildings - - - 0.2 0.3 - - -
Retail trade - - - - - - - -
Land 33.9 10.3 10.2 9.3 9.2 10.7 9.8 9.6
Industrial - - - - - - - -
Healthcare - - - - - - - 1.8
Churches and educational facilities - - - 0.1 0.3 0.3 0.7 0.5
Lodging - - - - - - - -
Convenience stores 0.5 0.6 0.6 1.7 1.4 1.4 - -
Marina - - - - - - - -
Other - - - - - - - -
--- --- --- --- --- --- --- ---
34.4 10.9 10.8 11.3 11.2 12.4 10.5 11.9
Individuals
Lot loans 20.8 19.4 18.6 17.9 18.4 17.6 16.4 16.7
Construction 7.3 6.7 6.4 8.7 13.5 16.6 18.9 22.2
--- --- --- --- ---- ---- ---- ----
28.1 26.1 25.0 26.6 31.9 34.2 35.3 38.9
---- ---- ---- ---- ---- ---- ---- ----
Total construction and land development 75.7 49.2 47.7 49.2 54.0 57.2 56.2 60.7
Real estate mortgages
Residential real estate
Adjustable 308.6 314.3 324.4 334.1 341.6 359.4 353.7 361.0
Fixed rate 86.6 88.8 92.8 97.0 96.2 95.4 99.7 99.0
Home equity mortgages 67.7 63.1 63.6 60.2 59.5 58.3 58.4 58.0
Home equity lines 57.4 56.9 55.1 54.9 53.0 50.8 50.6 51.4
---- ---- ---- ---- ---- ---- ---- ----
520.3 523.1 535.9 546.2 550.3 563.9 562.4 569.4
Commercial real estate
Office buildings 121.3 120.0 122.0 119.6 118.0 113.4 102.4 104.7
Retail trade 150.6 149.6 146.1 140.6 139.3 128.5 121.1 126.7
Industrial 76.3 68.5 72.5 70.7 70.0 72.0 71.3 72.6
Healthcare 26.6 26.3 29.6 38.8 40.2 42.0 35.8 40.7
Churches and educational facilities 28.6 28.2 27.8 27.4 27.0 26.7 26.2 28.6
Recreation 2.8 2.8 2.7 3.2 3.1 3.1 2.7 2.7
Multifamily 14.2 16.8 15.4 9.4 8.8 8.3 7.8 9.0
Mobile home parks 2.5 2.4 2.2 2.2 2.1 2.1 2.1 2.0
Lodging 21.7 20.0 19.8 19.6 19.4 19.3 19.1 18.7
Restaurant 4.2 4.3 4.3 4.7 4.6 4.7 4.4 3.5
Agricultural 9.2 9.2 8.9 8.8 7.6 7.4 7.3 6.1
Convenience stores 20.1 20.0 19.8 15.1 15.5 15.4 16.6 20.5
Marina 21.7 21.5 21.4 21.3 21.6 21.5 21.4 21.2
Other 27.4 27.3 26.9 27.0 29.3 29.3 35.6 29.8
---- ---- ---- ---- ---- ---- ---- ----
527.2 516.9 519.4 508.4 506.5 493.7 473.8 486.8
----- ----- ----- ----- ----- ----- ----- -----
Total real estate mortgages 1,047.5 1,040.0 1,055.3 1,054.6 1,056.8 1,057.6 1,036.2 1,056.2
Commercial & financial 51.5 48.0 53.5 53.1 54.6 56.2 58.2 61.9
Installment loans to individuals
Automobile and trucks 10.1 9.5 9.2 8.7 8.2 8.1 8.0 7.8
Marine loans 19.4 20.2 21.6 19.9 21.1 20.8 23.0 18.4
Other 20.9 21.6 20.9 22.0 21.5 21.3 20.6 20.7
---- ---- ---- ---- ---- ---- ---- ----
50.4 51.3 51.7 50.6 50.8 50.2 51.6 46.9
Other 0.3 0.4 0.3 0.6 0.2 0.2 0.3 0.4
--- --- --- --- --- --- --- ---
$1,225.4 $1,188.9 $1,208.5 $1,208.1 $1,216.4 $1,221.4 $1,202.5 $1,226.1
======== ======== ======== ======== ======== ======== ======== ========
QUARTERLY TRENDS - INCREASE (DECREASE) IN LOANS BY QUARTER (Dollars in Millions) (Unaudited)
------------------------------------------------------------------------------- ----------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2011 2012
---- ----
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
------- ------- ------- ------- ------- ------- ------- -------
Construction and land development
Residential
Condominiums $(0.4) $(0.5) $ - $ - $ - $ - $ - -
Townhomes - - - - - - - -
Single family residences - - - - - - - -
Single family land and lots (0.4) (0.1) (0.1) (0.2) (0.2) (0.1) (0.1) (0.2)
Multifamily - (0.4) (0.2) (0.4) (0.2) (0.2) (0.1) (0.3)
--- ---- ---- ---- ---- ---- ---- ----
(0.8) (1.0) (0.3) (0.6) (0.4) (0.3) (0.2) (0.5)
Commercial
Office buildings - - - 0.2 0.1 (0.3) - -
Retail trade - - - - - - - -
Land 0.3 (23.6) (0.1) (0.9) (0.1) 1.5 (0.9) (0.2)
Industrial - - - - - - - -
Healthcare - - - - - - - 1.8
Churches and educational facilities - - - 0.1 0.2 - 0.4 (0.2)
Lodging - - - - - - - -
Convenience stores 0.3 0.1 - 1.1 (0.3) - (1.4) -
Marina - - - - - - - -
Other - - - - - - - -
--- --- --- --- --- --- --- ---
0.6 (23.5) (0.1) 0.5 (0.1) 1.2 (1.9) 1.4
Individuals
Lot loans (3.6) (1.4) (0.8) (0.7) 0.5 (0.8) (1.2) 0.3
Construction 0.2 (0.6) (0.3) 2.3 4.8 3.1 2.3 3.3
--- ---- ---- --- --- --- --- ---
(3.4) (2.0) (1.1) 1.6 5.3 2.3 1.1 3.6
---- ---- ---- --- --- --- --- ---
Total construction and land development (3.6) (26.5) (1.5) 1.5 4.8 3.2 (1.0) 4.5
Real estate mortgages
Residential real estate
Adjustable 5.3 5.7 10.1 9.7 7.5 17.8 (5.7) 7.3
Fixed rate 4.0 2.2 4.0 4.2 (0.8) (0.8) 4.3 (0.7)
Home equity mortgages (5.7) (4.6) 0.5 (3.4) (0.7) (1.2) 0.1 (0.4)
Home equity lines (0.3) (0.5) (1.8) (0.2) (1.9) (2.2) (0.2) 0.8
---- ---- ---- ---- ---- ---- ---- ---
3.3 2.8 12.8 10.3 4.1 13.6 (1.5) 7.0
Commercial real estate
Office buildings (0.7) (1.3) 2.0 (2.4) (1.6) (4.6) (11.0) 2.3
Retail trade (0.9) (1.0) (3.5) (5.5) (1.3) (10.8) (7.4) 5.6
Industrial (1.7) (7.8) 4.0 (1.8) (0.7) 2.0 (0.7) 1.3
Healthcare (3.4) (0.3) 3.3 9.2 1.4 1.8 (6.2) 4.9
Churches and educational facilities (0.2) (0.4) (0.4) (0.4) (0.4) (0.3) (0.5) 2.4
Recreation (0.1) - (0.1) 0.5 (0.1) - (0.4) -
Multifamily (8.2) 2.6 (1.4) (6.0) (0.6) (0.5) (0.5) 1.2
Mobile home parks - (0.1) (0.2) - (0.1) - - (0.1)
Lodging (0.2) (1.7) (0.2) (0.2) (0.2) (0.1) (0.2) (0.4)
Restaurant (0.3) 0.1 - 0.4 (0.1) 0.1 (0.3) (0.9)
Agricultural (1.4) - (0.3) (0.1) (1.2) (0.2) (0.1) (1.2)
Convenience stores 1.5 (0.1) (0.2) (4.7) 0.4 (0.1) 1.2 3.9
Marina (0.2) (0.2) (0.1) (0.1) 0.3 (0.1) (0.1) (0.2)
Other (0.6) (0.1) (0.4) 0.1 2.3 - 6.3 (5.8)
---- ---- ---- --- --- --- --- ----
(16.4) (10.3) 2.5 (11.0) (1.9) (12.8) (19.9) 13.0
----- ----- --- ----- ---- ----- ----- ----
Total real estate mortgages (13.1) (7.5) 15.3 (0.7) 2.2 0.8 (21.4) 20.0
Commercial & financial 2.7 (3.5) 5.5 (0.4) 1.5 1.6 2.0 3.7
Installment loans to individuals
Automobile and trucks (0.8) (0.6) (0.3) (0.5) (0.5) (0.1) (0.1) (0.2)
Marine loans (0.4) 0.8 1.4 (1.7) 1.2 (0.3) 2.2 (4.6)
Other - 0.7 (0.7) 1.1 (0.5) (0.2) (0.7) 0.1
--- --- ---- --- ---- ---- ---- ---
(1.2) 0.9 0.4 (1.1) 0.2 (0.6) 1.4 (4.7)
Other - 0.1 (0.1) 0.3 (0.4) - 0.1 0.1
--- --- ---- --- ---- --- --- ---
$(15.2) $(36.5) $19.6 $(0.4) $8.3 $5.0 $(18.9) 23.6
====== ====== ===== ===== ==== ==== ====== ====
SOURCE Seacoast Banking Corporation of Florida
