SEACOAST BANKING CORPORATION OF FLORIDA 
By STUART, Fla., Jan. 26, 2012 /PRNewswire/ -- Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCF), today reported 2011 fourth quarter net income of $2.5 million, up $12.8 million compared to the fourth quarter of 2010. Net income was $6.7 million for the full year compared to the net loss for the year 2010 totaling $33.2 million. Net income available to Common shareholders for the fourth quarter and the year 2011 totaled, respectively, $1.6 million or $0.02 diluted earnings per share (DEPS), and $2.9 million or $0.03 DEPS. These figures compare to a loss of $0.12 DEPS and $0.48 DEPS a year ago for the same periods, respectively.
(Logo: http://photos.prnewswire.com/prnh/20050916/SEACOASTLOGO)
"We are pleased with the quarter as it represented good progress against our strategic plan even with significant headwinds from the operating and interest rate environment," said Dennis S. Hudson, III, Chairman and Chief Executive Officer. "There were many positives that confirm we are making significant progress to improve profitability and add to long-term earnings growth. Net interest income increased, reflecting loan and deposit growth. Noninterest income increased, reflecting growth in key activities such as mortgage banking gains, and fees earned from increased households and business deposit relationships, as well as, an increase in fees from wealth management. Noninterest expenses declined significantly as a result of meaningful improvements in credit quality.
"Generating improved returns while reducing risk for our shareholders is our key objective," Hudson continued. "Over the last two years, we have significantly improved the risk profile of the balance sheet by increasing capital, strengthening reserves, and reducing the concentrations of higher risk noncore commercial real estate loans."
Highlights for the quarter:
-- Fourth quarter results reflected growth in customers, loans and deposits
with improving overall credit quality and disciplined core expense
management;
-- Commercial and retail banking added 2,696 new household relationships
during the fourth quarter of 2011. For the year 2011, new households
totaled 8,515, almost 1.2 times the growth in 2010;
-- Average accruing commercial loan balances grew $10 million and
residential loan balances increased $20 million compared to third
quarter 2011;
-- Commercial loans closed totaled approximately $18.6 million, the highest
quarterly production in 2011;
-- Nonperforming loans fell to 2.36 percent of loans compared to 2.70
percent last quarter and 5.50 percent one year earlier; and
-- Other real estate owned fell to $20.9 million compared to $23.7 million
last quarter and $25.7 million one year earlier.
A key objective of our strategic plan is to produce strong organic growth of our customer deposit franchise. During the quarter, our tactical initiatives produced significantly improved growth in customer relationship funding compared to the same quarter last year. Total core customer funding increased by 15.5 percent over the past year.
2011 2010 Change
------
Fourth Fourth
(Dollars in thousands) Quarter Quarter
---------------------- ------- -------
Customer Relationship Funding (Period
End)
Demand deposits (noninterest bearing) $328,356 $289,621 13.4 %
NOW 469,631 401,005 17.1
Savings deposits 133,578 113,082 18.1
Money market accounts 319,152 298,538 6.9
Time certificates of deposit 468,024 534,982 (12.5)
------- -------
Total Deposits 1,718,741 1,637,228 5.0
Sweep repurchase agreements 136,252 98,213 38.7
Total core customer funding (1) 1,386,969 1,200,459 15.5
------------------------------- --------- --------- ----
(1) Total deposits and sweep repurchase agreements, excluding certificates of deposits.
Seacoast strengthened its regulatory capital ratios as profitability was restored throughout the year. The estimated total risk-based capital ratio at year-end increased to 18.8 percent, up from 17.8 percent a year ago. The estimated tangible common equity ratio was 5.6 percent at year-end 2011 and will increase to an estimated 7.6 percent when the deferred tax asset valuation allowance is released.
With a strong balance sheet and reduced aggregate credit risk, the board and executive management have been focused on improvements designed to increase profitability and ultimately position Seacoast as a top-tier community bank as measured by low risk, strong organic growth and increased shareholder value.
Revenue growth improved throughout 2011 as a result of retail and small business deposit account growth, and improvements in loan production. Excluding $600,000 realized on the sale of the Company's merchant business in the fourth quarter 2010, noninterest income was up $296,000 or 6.5 percent in the fourth quarter compared with a year ago and was up for the full year by $811,000 or 4.6 percent compared with 2010.
(Dollars in thousands) Q-4 Q-3 Q-2 Q-1 Q-4
---------------------- 2011 2011 2011 2011 2010
---- ---- ---- ---- ----
Noninterest Income:
Service charges on deposit
accounts $1,599 $1,675 $1,546 $1,442 $1,590
Trust income 530 541 517 523 510
Mortgage banking fees 680 556 509 395 580
Brokerage commissions and fees 258 321 223 320 325
Marine finance fees 333 229 349 298 355
Interchange income 953 969 995 891 814
Other deposit based EFT fees 78 71 79 90 75
Other 452 344 329 250 338
Total 4,883 4,706 4,547 4,209 4,587
Gain on sale of merchant business 0 0 0 0 600
--- --- --- --- ---
$4,883 $4,706 $4,547 $4,209 $5,187
====== ====== ====== ====== ======
Revenue earned from service charges on deposits, and interchange income improved over the prior year as a result of increased households. Retail household growth for the entire year has improved as a result of the Company's retail deposit program and expanded efforts to attract new commercial deposit accounts. New household acquisition was particularly strong for the fourth quarter; new personal retail checking relationships opened during the quarter rose 20.2 percent from the same quarter of 2010 and 27.3 percent from the third quarter of 2011. Likewise, new commercial business checking deposit relationships increased by 11.8 percent compared with the same quarter one year ago. Along with the new relationships, our programs have improved market share, increased average services per household and decreased customer attrition.
Nonperforming loans declined by $39.8 million, or 58.2 percent during the year and totaled 2.36 percent of loans outstanding at year-end. Early stage delinquencies (accruing loans 30-89 days past due) remain nominal at 0.42 percent of loans outstanding. The allowance for loan losses totals $25.6 million or 2.12 percent of loans, down slightly from 2.35 percent the prior quarter and 3.04 percent at year-end 2010. Other real estate owned ("OREO") balances declined by $4.8 million or 18.5 percent from the prior year as the result of sales and fewer loans foreclosed.
Accruing loans increased by approximately $7 million to $1.18 billion at year-end, which was the first yearly increase in accruing loans since 2007 as more resources have been dedicated to loan production and problem loan management declined. This is the second consecutive quarter of total loan growth as a result of improving loan production, stabilized credit quality and our tactical focus on growing market share in lower risk customer segments.
Core operating expenses (total noninterest expenses less losses on other real estate owned and other asset disposition expenses) have been well managed throughout the year as noted in the table below. Fourth quarter salary costs were higher by $399,000 compared to the third quarter as a result of severance payments as several positions were eliminated which will lower quarterly salary expense by approximately $125,000 going forward. Noninterest expenses for the quarter totaled $20.0 million a decline of $7.8 million from the prior year's fourth quarter, entirely due to lower expenses for OREO and other asset dispositions which totaled $1.5 million in the fourth quarter 2011 compared to $9.9 million the prior year. Noninterest expenses for 2011 totaled $77.8 million compared to $89.6 million, a decrease of $11.8 million. This was due to lower consulting fees of approximately $1.3 million for development and implementation assistance related to our strategic plan and enterprise risk management projects in 2010, reduced legal fees of $0.4 million, and lower expense for OREO and other asset dispositions which totaled $15.8 million last year, compared to $6.0 million in 2011. Core operating expenses were $18.4 million in the fourth quarter, up approximately $578,000 primarily related to the aforementioned higher severance costs, data processing as the result of household and account growth, employee benefits and additional marketing and promotion expenses. Offsetting were much lower legal and professional fees as a result of fewer problem assets.
Core operating expense trends are presented in the table below:
(dollars in thousands) Q-4 Q-3 Q-2 Q-1 Q-4
2011 2011 2011 2011 2010
---- ---- ---- ---- ----
Noninterest Expense:
Salaries and wages $7,301 $6,902 $6,534 $6,551 $6,539
Employee benefits 1,447 1,391 1,437 1,600 1,153
Outsourced data processing
costs 1,677 1,685 1,699 1,522 1,496
Telephone / data lines 285 286 319 289 321
Occupancy expense 1,795 1,967 1,919 1,946 1,699
Furniture and equipment
expense 525 555 618 593 609
Marketing expense 947 551 667 752 764
Legal and professional fees 1,299 1,496 1,585 1,757 1,783
FDIC assessments 679 687 688 959 947
Amortization of intangibles 212 211 212 212 212
Other 2,264 1,947 1,812 1,951 2,330
----- ----- ----- ----- -----
Total Core Operating Expense 18,431 17,678 17,490 18,132 17,853
Net loss on OREO 1,254 906 441 449 8,763
Asset dispositions expense 275 479 1,142 1,086 1,122
--- --- ----- ----- -----
Total $19,960 $19,063 $19,073 $19,667 $27,738
======= ======= ======= ======= =======
The net interest margin remained unchanged at 3.42 percent in the fourth quarter 2011 compared to the fourth quarter of 2010 aided by much lower nonperforming assets and lower costs for interest bearing liabilities, but offsetting were lower asset yields caused by Federal Reserve actions to stimulate economic growth. In addition the net interest margin continues to be negatively impacted by higher levels of overnight liquidity and short-term investments. Interest bearing deposit costs decreased 11 basis points to 0.69 percent during the fourth quarter 2011, and the total cost of interest bearing liabilities decreased from 1.01 percent for the fourth quarter 2010 to 0.77 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 19.1 percent of total deposits from 17.7 percent a year ago and total transaction accounts and customer sweep repurchases now account for more than half of total customer relationship funding.
The Company will host a conference call on Friday, January 27, 2012 at 9:00 a.m. (Eastern Time) to discuss its earnings results and business trends. Investors may call in (toll-free) by dialing (888) 517-2464 (access code: 5785075; 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 27 by dialing (888) 843-7419 (domestic), using the passcode 5785075.
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 27, 2012, 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 39 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, 2010 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, December 31, December 31,
------------ ------------
except share data) 2011 2010 2011 2010
------------------ ---- ---- ---- ----
Summary of Earnings
Net income (loss) $2,548 $(10,205) $6,667 $(33,203)
Net income (loss)
available to common
shareholders 1,611 (11,142) 2,919 (36,951)
Net interest income
(1) 17,020 16,379 67,059 66,485
Performance Ratios
Return on average
assets-GAAP basis
(2), (3) 0.48% (2.01) % 0.32% (1.60) %
Return on average
tangible assets (2),
(3), (4) 0.51 (1.99) 0.35 (1.57)
Return on average
shareholders' equity-
GAAP basis (2), (3) 6.17 (23.31) 4.03 (19.30)
Net interest margin
(1), (2) 3.42 3.42 3.42 3.37
Per Share Data
Net income (loss)
diluted-GAAP basis $0.02 $(0.12) $0.03 $(0.48)
Net income (loss)
basic-GAAP basis 0.02 (0.12) 0.03 (0.48)
Cash dividends
declared 0.00 0.00 0.00 0.00
December 31, Increase/
------------
2011 2010 (Decrease)
---- ---- ----------
Credit Analysis
Net charge-offs year-
to-date $14,153 $39,128 (63.8) %
Net charge-offs to
average loans 1.16% 2.95% (60.7)
Loan loss provision
year-to-date $1,974 $31,680 (93.8)
Allowance to loans at
end of period 2.12% 3.04% (30.3)
Nonperforming loans $28,526 $68,284 (58.2)
Other real estate
owned 20,946 25,697 (18.5)
Total non-performing
assets $49,472 $93,981 (47.4)
------- -------
Restructured loans
(accruing) $71,611 $66,350 7.9
Nonperforming assets
to loans and other
real
estate owned at end of
period 4.03% 7.42% (45.7)
Nonperforming assets
to total assets 2.31% 4.66% (50.4)
Selected Financial
Data
Total assets $2,137,375 $2,016,381 6.0
Securities available
for sale (at fair
value) 648,362 435,140 49.0
Securities held for
investment (at
amortized cost) 19,977 26,861 (25.6)
Net loans 1,182,509 1,202,864 (1.7)
Deposits 1,718,741 1,637,228 5.0
Total shareholders'
equity 170,077 166,299 2.3
Common shareholders'
equity 122,580 120,051 2.1
Book value per share
common 1.29 1.28 0.8
Tangible book value
per share 1.77 1.75 1.1
Tangible common book
value per share (5) 1.27 1.25 1.6
Average shareholders'
equity to average
assets 8.01% 8.27% (3.1)
Tangible common equity
to tangible assets
(5), (6) 5.63 5.81 (3.1)
Average Balances
(Year-to-Date)
Total assets $2,063,684 $2,080,570 (0.8)
Less: intangible
assets 2,708 3,580 (24.4)
Total average tangible
assets $2,060,976 $2,076,990 (0.8)
---------- ----------
Total equity $165,296 $172,022 (3.9)
Less: intangible
assets 2,708 3,580 (24.4)
Total average tangible
equity $162,588 $168,442 (3.5)
-------- --------
(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.
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) 2011 2010 2011 2010
----------------------- ---- ---- ---- ----
Interest on securities:
Taxable $4,499 $3,484 $17,500 $13,881
Nontaxable 17 40 140 227
Interest and fees on loans 15,351 16,503 62,355 69,454
Interest on federal funds
sold and other investments 191 216 797 979
--- --- --- ---
Total Interest Income 20,058 20,243 80,792 84,541
Interest on deposits 531 609 2,371 3,952
Interest on time
certificates 1,826 2,547 8,615 11,345
Interest on borrowed money 727 766 2,967 3,032
--- --- ----- -----
Total Interest Expense 3,084 3,922 13,953 18,329
----- ----- ------ ------
Net Interest Income 16,974 16,321 66,839 66,212
Provision for loan losses 432 3,975 1,974 31,680
--- ----- ----- ------
Net Interest Income After
Provision for Loan Losses 16,542 12,346 64,865 34,532
Noninterest income:
Service charges on deposit
accounts 1,599 1,590 6,262 5,925
Trust income 530 510 2,111 1,977
Mortgage banking fees 680 580 2,140 2,119
Brokerage commissions and
fees 258 325 1,122 1,174
Marine finance fees 333 355 1,209 1,334
Interchange income 953 814 3,808 3,163
Other deposit based EFT
fees 78 75 318 321
Other 452 938 1,375 2,121
--- --- ----- -----
4,883 5,187 18,345 18,134
Securities gains, net 1,083 0 1,220 3,687
----- --- ----- -----
Total Noninterest Income 5,966 5,187 19,565 21,821
Noninterest expenses:
Salaries and wages 7,301 6,539 27,288 26,408
Employee benefits 1,447 1,153 5,875 5,717
Outsourced data processing
costs 1,677 1,496 6,583 5,981
Telephone / data lines 285 321 1,179 1,505
Occupancy 1,795 1,699 7,627 7,480
Furniture and equipment 525 609 2,291 2,398
Marketing 947 764 2,917 2,910
Legal and professional fees 1,299 1,783 6,137 7,977
FDIC assessments 679 947 3,013 3,958
Amortization of intangibles 212 212 847 985
Asset dispositions expense 275 1,122 2,281 2,268
Net loss on other real
estate owned and
repossessed assets 1,254 8,763 3,751 13,541
Other 2,264 2,330 7,974 8,428
----- ----- ----- -----
Total Noninterest Expenses 19,960 27,738 77,763 89,556
Income (Loss) Before Income
Taxes 2,548 (10,205) 6,667 (33,203)
Provision for income taxes 0 0 0 0
--- --- --- ---
Net Income (Loss) 2,548 (10,205) 6,667 (33,203)
Preferred stock dividends
and accretion on preferred
stock discount 937 937 3,748 3,748
--- --- ----- -----
Net Income (Loss) Available
to Common Shareholders $1,611 $(11,142) $2,919 $(36,951)
------ -------- ------ --------
Per share of common stock:
Net income (loss) diluted $0.02 $(0.12) $0.03 $(0.48)
Net income (loss) basic 0.02 (0.12) 0.03 (0.48)
Cash dividends declared 0.00 0.00 0.00 0.00
Average diluted shares
outstanding 94,364,433 93,426,748 93,801,073 76,561,692
Average basic shares
outstanding 93,570,748 93,426,748 93,511,983 76,561,692
-------------------- ---------- ---------- ---------- ----------
CONDENSED
CONSOLIDATED
BALANCE SHEETS (Unaudited)
--------------- -----------
SEACOAST BANKING CORPORATION OF FLORIDA AND
SUBSIDIARIES
December 31, December 31,
(Dollars in
thousands, except
share data) 2011 2010
------------------ ---- ----
Assets
Cash and due from
banks $41,136 $35,358
Interest bearing
deposits with
other banks 125,945 176,047
------- -------
Total Cash and
Cash Equivalents 167,081 211,405
Securities:
Available for sale
(at fair value) 648,362 435,140
Held for
investment (at
amortized cost) 19,977 26,861
------ ------
Total Securities 668,339 462,001
Loans available
for sale 6,795 12,519
Loans, net of
deferred costs 1,208,074 1,240,608
Less: Allowance
for loan losses (25,565) (37,744)
------- -------
Net Loans 1,182,509 1,202,864
Bank premises and
equipment, net 34,227 36,045
Other real estate
owned 20,946 25,697
Other intangible
assets 2,289 3,137
Other assets 55,189 62,713
------ ------
$2,137,375 $2,016,381
---------- ----------
Liabilities and
Shareholders'
Equity
Liabilities
Deposits
Demand deposits
(noninterest
bearing) $328,356 $289,621
NOW 469,631 401,005
Savings deposits 133,578 113,082
Money market
accounts 319,152 298,538
Other time
certificates 244,886 281,681
Brokered time
certificates 4,558 7,093
Time certificates
of $100,000 or
more 218,580 246,208
------- -------
Total Deposits 1,718,741 1,637,228
Federal funds
purchased and
securities sold
under
agreements to
repurchase,
maturing within
30 days 136,252 98,213
Borrowed funds 50,000 50,000
Subordinated debt 53,610 53,610
Other liabilities 8,695 11,031
----- ------
1,967,298 1,850,082
Shareholders'
Equity
Preferred stock -
Series A 47,497 46,248
Common stock 9,469 9,349
Additional paid in
capital 222,048 221,522
Accumulated
deficit (114,152) (112,652)
Treasury stock (13) (1)
--- ---
164,849 164,466
Accumulated other
comprehensive
gain, net 5,228 1,833
----- -----
Total
Shareholders'
Equity 170,077 166,299
------- -------
$2,137,375 $2,016,381
---------- ----------
Common Shares
Outstanding 94,686,801 93,487,581
Note: The balance sheet at December 31, 2010 has been
derived from the audited financial statements at that
date.
CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited)
-------------------------------------- -----------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
QUARTERS
--------
2011 Last 12
----
(Dollars in thousands,
except per share data) Fourth Third Second First Months
----------------------- ------ ----- ------ ----- ------
Net income $2,548 $2,648 $1,113 $358 $6,667
Operating Ratios
Return on average
assets-GAAP basis
(2),(3) 0.48% 0.51% 0.21% 0.07% 0.32%
Return on average
tangible assets
(2),(3),(4) 0.51 0.54 0.24 0.10 0.35
Return on average
shareholders' equity-
GAAP 6.17 6.33 2.68 0.88 4.03
basis (2),(3)
Net interest margin
(1),(2) 3.42 3.44 3.36 3.48 3.42
Average equity to
average assets 7.86 8.07 7.98 8.14 8.01
Credit Analysis
Net charge-offs $3,268 $2,830 $4,024 $4,031 $14,153
Net charge-offs to
average loans 1.07% 0.94% 1.32% 1.32% 1.16%
Loan loss provision $432 $0 $902 $640 $1,974
Allowance to loans at
end of period 2.12% 2.35% 2.63% 2.80%
Restructured loans
(accruing) $71,611 72,751 60,238 76,935
Nonperforming loans $28,526 32,627 46,165 66,233
Other real estate owned 20,946 23,702 25,877 24,111
Nonperforming assets $49,472 $56,329 $72,042 $90,344
------- ------- ------- -------
Nonperforming assets to loans and other
real estate owned at
end of period 4.03% 4.57% 5.93% 7.23%
Nonperforming assets to
total assets 2.31 2.75 3.46 4.34
Nonaccrual loans and accruing loans 90
days or more
past due to loans
outstanding at end of
period 2.36 2.70 3.88 5.41
Per Share Common Stock
Net income (loss)
diluted-GAAP basis $0.02 $0.02 $0.00 $(0.01) $0.03
Net income (loss)
basic-GAAP basis 0.02 0.02 0.00 (0.01) $0.03
Cash dividends declared - - - - $-
Book value per share
common 1.29 1.31 1.33 1.28
Average Balances
Total assets $2,085,466 $2,054,856 $2,083,858 $2,030,045
Less: Intangible assets 2,392 2,605 2,816 3,027
Total average tangible
assets $2,083,074 $2,052,251 $2,081,042 $2,027,018
---------- ---------- ---------- ----------
Total equity $163,857 $165,845 $166,342 $165,148
Less: Intangible assets 2,392 2,605 2,816 3,027
Total average tangible
equity $161,465 $163,240 $163,526 $162,121
---------------------- -------- -------- -------- --------
(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 2011 2010
---------- ---- ----
U.S. Treasury and U.S. Government Agencies $1,724 $4,212
Mortgage-backed 645,471 426,477
Obligations of states and political
subdivisions 1,167 1,709
Other securities 0 2,742
--- -----
Securities Available for Sale 648,362 435,140
------- -------
Mortgage-backed 12,315 18,963
Obligations of states and political
subdivisions 6,662 7,398
Other securities 1,000 500
----- ---
Securities Held for Investment 19,977 26,861
------ ------
Total Securities $668,339 $462,001
-------- --------
December 31, December 31,
LOANS 2011 2010
----- ---- ----
Construction and land development $49,184 $79,306
Real estate mortgage 1,054,599 1,060,597
Installment loans to individuals 50,611 51,602
Commercial and financial 53,105 48,825
Other loans 575 278
--- ---
Total Loans $1,208,074 $1,240,608
---------- ----------
AVERAGE BALANCES, YIELDS AND RATES
(1) (Unaudited)
---------------------------------- -----------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2011 2010
- ----
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 $614,939 2.93% $624,811 3.04% $446,081 3.12%
Nontaxable 2,591 4.17 3,392 6.72 4,293 5.59
----- ---- ----- ---- ----- ----
Total Securities 617,530 2.93 628,203 3.06 450,374 3.15
Federal funds sold and other
investments 147,017 0.52 127,072 0.54 187,023 0.46
Loans, net 1,210,028 5.05 1,197,686 5.09 1,263,237 5.19
--------- ---- --------- ---- --------- ----
Total Earning
Assets 1,974,575 4.04 1,952,961 4.13 1,900,634 4.24
Allowance for
loan losses (27,689) (30,666) (39,443)
Cash and due from
banks 35,312 27,044 33,024
Premises and
equipment 34,517 34,782 36,460
Other assets 68,751 70,735 82,730
------ ------ ------
$2,085,466 $2,054,856 $2,013,405
---------- ---------- ----------
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
NOW (2) $422,480 0.20% $394,399 0.24% $396,920 0.24%
Savings deposits 131,554 0.11 126,800 0.11 110,382 0.11
Money market
accounts (2) 325,111 0.34 320,683 0.41 314,943 0.43
Time deposits 475,666 1.52 510,755 1.66 537,772 1.88
Federal funds purchased and
other short term
borrowings 127,956 0.22 99,311 0.27 83,183 0.27
Other borrowings 103,610 2.50 103,610 2.31 103,610 2.72
------- ---- ------- ---- ------- ----
Total Interest-
Bearing
Liabilities 1,586,377 0.77 1,555,558 0.87 1,546,810 1.01
Demand deposits
(noninterest-
bearing) 326,215 322,646 280,412
Other liabilities 9,017 10,807 12,476
----- ------ ------
Total Liabilities 1,921,609 1,889,011 1,839,698
Shareholders'
equity 163,857 165,845 173,707
------- ------- -------
$2,085,466 $2,054,856 $2,013,405
---------- ---------- ----------
Interest expense as a % of earning
assets 0.62% 0.69% 0.82%
Net interest income as a % of earning
assets 3.42 3.44 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
2011 2010
---- ----
(Dollars in
thousands) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter
----------- -------------- ------------- -------------- ------------- --------------
Customer
Relationship
Funding (Period
End)
Demand deposits
(noninterest
bearing) $328,356 $324,256 $321,876 $324,879 $289,621
NOW 469,631 391,318 385,640 396,369 401,005
Savings deposits 133,578 128,543 125,221 120,819 113,082
Money market
accounts 319,152 327,654 320,510 310,942 298,538
Time certificates
of deposit 468,024 489,503 528,214 533,201 534,982
------- ------- ------- ------- -------
Total Deposits 1,718,741 1,661,274 1,681,461 1,686,210 1,637,228
Sweep repurchase
agreements 136,252 106,562 102,827 115,185 98,213
Total core
customer funding
(1) 1,386,969 1,278,333 1,256,074 1,268,194 1,200,459
(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
2010 2011 Nonperforming
---- ---- -------------
Construction and
land 1st 2nd 3rd
development 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Qtr Qtr Qtr 4th Qtr 4th Qtr Number
---------------- ------- ------- ------- ------- ---- ---- ---- ------- ------- ------
Residential:
>$4
Condominiums million $- $- $- $- $- $- $- $- $- -
<$4
million 0.9 0.9 0.9 0.9 0.5 - - - - -
Town >$4
homes million - - - - - - - - - -
<$4
million - - - - - - - - - -
Single
Family >$4
Residences million - - - - - - - - - -
<$4
million 3.9 3.6 3.8 - - - - - - -
Single
Family
Land & >$4
Lots million 5.9 5.9 - - - - - - - -
<$4
million 15.7 9.6 10.3 7.0 6.6 6.5 6.4 6.2 0.1 2
>$4
Multifamily million 6.6 4.3 - - - - - - - -
<$4
million 8.1 8.2 6.3 6.1 6.1 5.7 5.5 5.1 1.0 2
--- --- --- --- --- --- ---
>$4
TOTAL million 12.5 10.2 - - - - - - - -
<$4
TOTAL million 28.6 22.3 21.3 14.0 13.2 12.2 11.9 11.3 1.1 4
---- ---- ---- ---- ---- ---- ---
GRAND TOTAL $41.1 $32.5 $21.3 $14.0 $13.2 $12.2 $11.9 $11.3 $1.1 4
===== ===== ===== ===== ===== ===== ===== ===== ==== ===
QUARTERLY TRENDS - LOANS AT END OF PERIOD (Dollars in Millions) (Unaudited)
--------------------------------------------------------------- -----------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2010 2011
---- ----
4th
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr Qtr
------- ------- ------- ------- ------- ------- ------- ---
Construction
and land
development
Residential
Condominiums $0.9 $0.9 $0.9 $0.9 $0.5 $- $- $-
Townhomes - - - - - - - -
Single
family
residences 3.9 3.6 3.8 - - - - -
Single
family
land and
lots 21.6 15.5 10.3 7.0 6.6 6.5 6.4 6.2
Multifamily 14.7 12.5 6.3 6.1 6.1 5.7 5.5 5.1
---- ---- --- --- --- --- --- ---
41.1 32.5 21.3 14.0 13.2 12.2 11.9 11.3
Commercial
Office
buildings 13.7 - - - - - - 0.2
Retail
trade 3.9 - - - - - - -
Land 45.7 38.5 35.1 33.6 33.9 10.3 10.2 9.3
Industrial 2.5 0.3 0.3 - - - - -
Healthcare - - - - - - - -
Churches
and
educational
facilities - - - - - - - 0.1
Lodging - - - - - - - -
Convenience
stores - - - 0.2 0.5 0.6 0.6 1.7
Marina 6.8 - - - - - - -
Other - - - - - - - -
--- --- --- --- --- --- --- ---
72.6 38.8 35.4 33.8 34.4 10.9 10.8 11.3
Individuals
Lot loans 28.9 27.4 26.3 24.4 20.8 19.4 18.6 17.9
Construction 8.7 8.2 9.1 7.1 7.3 6.7 6.4 8.7
--- --- --- --- --- --- --- ---
37.6 35.6 35.4 31.5 28.1 26.1 25.0 26.6
---- ---- ---- ---- ---- ---- ---- ----
Total
construction
and land
development 151.3 106.9 92.1 79.3 75.7 49.2 47.7 49.2
Real
estate
mortgages
Residential
real
estate
Adjustable 290.5 295.9 300.9 303.3 308.6 314.3 324.4 334.1
Fixed rate 87.6 86.0 84.1 82.6 86.6 88.8 92.8 97.0
Home
equity
mortgages 89.1 79.0 74.4 73.4 67.7 63.1 63.6 60.2
Home
equity
lines 60.1 58.8 58.4 57.7 57.4 56.9 55.1 54.9
---- ---- ---- ---- ---- ---- ---- ----
527.3 519.7 517.8 517.0 520.3 523.1 535.9 546.2
Commercial
real
estate
Office
buildings 131.1 128.2 122.9 122.0 121.3 120.0 122.0 119.6
Retail
trade 163.5 155.9 152.0 151.5 150.6 149.6 146.1 140.6
Industrial 81.7 84.0 79.8 78.0 76.3 68.5 72.5 70.7
Healthcare 29.1 29.4 29.0 30.0 26.6 26.3 29.6 38.8
Churches
and
educational
facilities 29.1 28.5 29.4 28.8 28.6 28.2 27.8 27.4
Recreation 3.0 3.0 2.9 2.9 2.8 2.8 2.7 3.2
Multifamily 25.3 23.6 23.2 22.4 14.2 16.8 15.4 9.4
Mobile
home
parks 5.3 2.6 2.6 2.5 2.5 2.4 2.2 2.2
Lodging 23.5 23.4 22.1 21.9 21.7 20.0 19.8 19.6
Restaurant 4.7 4.6 4.5 4.5 4.2 4.3 4.3 4.7
Agricultural 11.4 10.8 10.7 10.6 9.2 9.2 8.9 8.8
Convenience
stores 22.3 21.0 18.9 18.6 20.1 20.0 19.8 15.1
Marina 15.7 22.2 22.1 21.9 21.7 21.5 21.4 21.3
Other 25.3 25.6 26.8 28.0 27.4 27.3 26.9 27.0
---- ---- ---- ---- ---- ---- ---- ----
571.0 562.8 546.9 543.6 527.2 516.9 519.4 508.4
----- ----- ----- ----- ----- ----- ----- -----
Total real
estate
mortgages 1,098.3 1,082.5 1,064.7 1,060.6 1,047.5 1,040.0 1,055.3 1,054.6
Commercial
&
financial 62.1 49.9 54.0 48.8 51.5 48.0 53.5 53.1
Installment
loans to
individuals
Automobile
and trucks 14.4 12.9 11.6 10.9 10.1 9.5 9.2 8.7
Marine
loans 25.3 27.3 19.7 19.8 19.4 20.2 21.6 19.9
Other 21.7 20.8 20.9 20.9 20.9 21.6 20.9 22.0
---- ---- ---- ---- ---- ---- ---- ----
61.4 61.0 52.2 51.6 50.4 51.3 51.7 50.6
Other 0.2 0.3 0.3 0.3 0.3 0.4 0.3 0.6
--- --- --- --- --- --- --- ---
$1,373.3 $1,300.6 $1,263.3 $1,240.6 $1,225.4 $1,188.9 $1,208.5 $1,208.1
======== ======== ======== ======== ======== ======== ======== ========
QUARTERLY TRENDS -INCREASE (DECREASE) IN LOANS BY QUARTER (Dollars in
Millions) (Unaudited)
--------------------------------------------------------------------- -----------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2010 2011
---- ----
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
------- ------- ------- ------- ------- ------- ------- -------
Construction
and land
development
Residential
Condominiums $(5.2) $- $- $- $(0.4) $(0.5) $- $-
Townhomes - - - - - - - -
Single
family
residences (0.2) (0.3) 0.2 (3.8) - - - -
Single
family
land and
lots (0.9) (6.1) (5.2) (3.3) (0.4) (0.1) (0.1) (0.2)
Multifamily (0.2) (2.2) (6.2) (0.2) - (0.4) (0.2) (0.4)
---- ---- ---- ---- --- ---- ---- ----
(6.5) (8.6) (11.2) (7.3) (0.8) (1.0) (0.3) (0.6)
Commercial
Office
buildings (0.2) (13.7) - - - - - 0.2
Retail
trade - (3.9) - - - - - -
Land 0.1 (7.2) (3.4) (1.5) 0.3 (23.6) (0.1) (0.9)
Industrial - (2.2) - (0.3) - - - -
Healthcare (4.8) - - - - - - -
Churches
and
educational
facilities - - - - - - - 0.1
Lodging - - - - - - - -
Convenience
stores - - - 0.2 0.3 0.1 - 1.1
Marina (0.0) (6.8) - - - - - -
Other - - - - - - - -
--- --- --- --- --- --- --- ---
(4.9) (33.8) (3.4) (1.6) 0.6 (23.5) (0.1) 0.5
Individuals
Lot loans (0.4) (1.5) (1.1) (1.9) (3.6) (1.4) (0.8) (0.7)
Construction 0.2 (0.5) 0.9 (2.0) 0.2 (0.6) (0.3) 2.3
--- ---- --- ---- --- ---- ---- ---
(0.2) (2.0) (0.2) (3.9) (3.4) (2.0) (1.1) 1.6
---- ---- ---- ---- ---- ---- ---- ---
Total
construction
and land
development (11.6) (44.4) (14.8) (12.8) (3.6) (26.5) (1.5) 1.5
Real estate
mortgages
Residential
real estate
Adjustable 1.1 5.4 5.0 2.4 5.3 5.7 10.1 9.7
Fixed rate (1.0) (1.6) (1.9) (1.5) 4.0 2.2 4.0 4.2
Home equity
mortgages 2.3 (10.1) (4.6) (1.0) (5.7) (4.6) 0.5 (3.4)
Home equity
lines - (1.3) (0.4) (0.7) (0.3) (0.5) (1.8) (0.2)
--- ---- ---- ---- ---- ---- ---- ----
2.4 (7.6) (1.9) (0.8) 3.3 2.8 12.8 10.3
Commercial
real
estate
Office
buildings (1.2) (2.9) (5.3) (0.9) (0.7) (1.3) 2.0 (2.4)
Retail
trade (1.1) (7.6) (3.9) (0.5) (0.9) (1.0) (3.5) (5.5)
Industrial (6.7) 2.3 (4.2) (1.8) (1.7) (7.8) 4.0 (1.8)
Healthcare 4.4 0.3 (0.4) 1.0 (3.4) (0.3) 3.3 9.2
Churches
and
educational
facilities (0.5) (0.6) 0.9 (0.6) (0.2) (0.4) (0.4) (0.4)
Recreation - - (0.1) - (0.1) - (0.1) 0.5
Multifamily (4.4) (1.7) (0.4) (0.8) (8.2) 2.6 (1.4) (6.0)
Mobile home
parks (0.1) (2.7) - (0.1) - (0.1) (0.2) -
Lodging (2.0) (0.1) (1.3) (0.2) (0.2) (1.7) (0.2) (0.2)
Restaurant - (0.1) (0.1) - (0.3) 0.1 - 0.4
Agricultural (0.3) (0.6) (0.1) (0.1) (1.4) - (0.3) (0.1)
Convenience
stores 0.2 (1.3) (2.1) (0.3) 1.5 (0.1) (0.2) (4.7)
Marina (0.1) 6.5 (0.1) (0.2) (0.2) (0.2) (0.1) (0.1)
Other (1.3) 0.3 1.2 1.2 (0.6) (0.1) (0.4) 0.1
---- --- --- --- ---- ---- ---- ---
(13.1) (8.2) (15.9) (3.3) (16.4) (10.3) 2.5 (11.0)
----- ---- ----- ---- ----- ----- --- -----
Total real
estate
mortgages (10.7) (15.8) (17.8) (4.1) (13.1) (7.5) 15.3 (0.7)
Commercial
&
financial 1.0 (12.2) 4.1 (5.2) 2.7 (3.5) 5.5 (0.4)
Installment
loans to
individuals
Automobile
and trucks (0.9) (1.5) (1.3) (0.7) (0.8) (0.6) (0.3) (0.5)
Marine
loans (1.1) 2.0 (7.6) 0.1 (0.4) 0.8 1.4 (1.7)
Other (0.6) (0.9) 0.1 - - 0.7 (0.7) 1.1
---- ---- --- --- --- --- ---- ---
(2.6) (0.4) (8.8) (0.6) (1.2) 0.9 0.4 (1.1)
Other (0.3) 0.1 - - - 0.1 (0.1) 0.3
---- --- --- --- --- --- ---- ---
$(24.2) $(72.7) $(37.3) $(22.7) $(15.2) $(36.5) $19.6 $(0.4)
====== ====== ====== ====== ====== ====== ===== =====
SOURCE Seacoast Banking Corporation of Florida
