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Press Release

Seacoast Reports First Quarter 2017 Results

Net Income Increased 100% Year-Over-Year to $7.9 Million; Net Revenue Increased 23% to $48.1 Million

Record Consumer and Small Business Loan Originations; Commercial Origination and Mortgage Loan Strength Continues

Company Updates FY2017 Guidance

Company Release - 4/25/2017 5:08 PM ET

STUART, Fla., April 25, 2017 /PRNewswire/ -- Seacoast Banking Corporation of Florida ("Seacoast" or "the Company") (NASDAQ: SBCF) today reported net income of $7.9 million for the first quarter of 2017, a 100% or $4.0 million increase from the first quarter of 2016. The company reported first quarter adjusted net income1 of $10.3 million, representing a 46% or $3.2 million increase year-over-year.

Dennis S. Hudson, III, Seacoast's Chairman and CEO, said "We sustained our prior year momentum during the first quarter, with robust loan pipelines, interchange and household growth reaching record levels, as we continued initiatives to become more efficient as the year progresses."

"We incurred certain expenses in the first quarter 2017, notably higher than the fourth quarter last year, that position us well for the balance of this fiscal year. We also successfully completed a public offering of 2.7 million shares during the first quarter, generating net proceeds of $55.7 million and situating us to sustain our strong organic growth and make selective acquisitions. On April 7, we closed the GulfShore Bank acquisition, extending our proven integration strategy into the attractive Tampa market."

Notable Items Affecting First Quarter 2017 Results

Certain items during first quarter 2017, aggregating $3.6 million in noninterest expense, were significant in comparison to fourth quarter 2016, and position the Company for much stronger performance looking forward.

  • Return of seasonal 401(k) and payroll tax expense.
  • Restructured the executive team, with salary expense overlap and severance-related charges. This was largely complete by first quarter end.
  • Hired a commercial lending team, expected to be earnings accretive in fiscal year 2017.
  • Completed a reduction in force, resulting in severance expense during the first quarter.
  • Consolidated four branch locations, resulting in closure charges and severance in the first quarter, with anticipated benefits partially realized in the second quarter and more fully in the second half of 2017.

Guidance

The Company's previous baseline adjusted diluted earnings per share guidance of $1.24 to $1.28 remains unchanged.  The Company has updated its definition of adjusted net income to exclude the effect of the amortization of acquisition related intangibles.  Updating its guidance for this new definition and the greater number of shares in issue following the Company's capital raise, the Company has revised its 2017 expected adjusted diluted earnings per share guidance to $1.28 to $1.32.

First Quarter 2017 Financial Highlights

Income Statement

  • Net income was $7.9 million, or $0.20 per average common diluted share, compared to $0.28 for the prior quarter and $0.11 for the first quarter of 2016. Adjusted net income1 was $10.3 million, or $0.26 per average common diluted share, compared to $0.31 for the prior quarter and $0.20 for the first quarter of 2016.
  • Net revenues were $48.1 million, an increase of $716 thousand, or 2%, compared to the prior quarter and an increase of $9.1 million, or 23% year-over-year. Adjusted revenues1 were $48.1 million, an increase of $723 thousand, or 2%, from the prior quarter and an increase of $9.7 million, or 25% year-over-year.
    • Net interest income totaled $38.2 million in the first quarter of 2017, an increase of $740 thousand or 2% from the prior quarter. Compared to the prior year quarter, net interest income increased 26% or $7.9 million.
    • Noninterest income totaled $9.9 million for the first quarter of 2017, flat to the prior quarter and $1.2 million or 14% higher than the prior year quarter.
  • Net interest margin was 3.63% in the current quarter compared to 3.56% in the prior quarter and 3.68% in the prior year quarter.
  • The provision for loan losses increased from the prior quarter by $304 thousand and from the prior year quarter by $1.1 million to $1.3 million, as a result of growth in loans outstanding.
  • Noninterest expense increased $4.4 million sequentially and increased $2.4 million compared to the prior year quarter.
    • The current quarter included expenses of $2.6 million associated with consolidation activity in the retail branch network, the realignment of our executive team structure, and expenses associated with a reduction in workforce initiative. The earnings benefit from this work will be realized over the remainder of 2017. In addition, $1.3 million was included in the quarter for merger related charges and amortization of intangibles acquired through acquisitions.
    • Adjusted noninterest expense1 was $30.9 million, an increase of $2.1 million, or 7%, compared to the prior quarter and $4.1 million, or 15%, compared to the prior year quarter. The increase quarter over quarter is primarily the result of seasonal expense associated with payroll taxes and incentive compensation accruals, the hiring of a commercial lending team during the quarter, and expenses associated with an investor relations event.
  • Seacoast recorded a $4.1 million income tax provision in the first quarter of 2017, compared to $5.3 million in the fourth quarter of 2016 and $2.4 million in the first quarter of 2016. The Company adopted ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting" in the third quarter of 2016; as a result, benefits related to stock-based compensation were $234 thousand in the current quarter and $383 thousand in the prior quarter.
  • Revenues, excluding securities gains, increased 24% compared to prior year levels while adjusted noninterest expense1 increased 15%, providing 9% operating leverage.
  • The efficiency ratio increased to 71.1% compared to 62.4% in the prior quarter and improved from 81.7% in the prior year quarter. The adjusted efficiency ratio1 increased to 64.7% compared to 60.8% in the prior quarter and improved from 69.6% in the prior year quarter.

Balance Sheet

  • At March 31, 2017, the Company had total assets of $4.8 billion and total shareholders' equity of $502.5 million. Book value per share was $12.34 and tangible book value per share was $10.41, up $0.88 and $1.04, respectively from December 31, 2016.
  • Loan production continued at a strong pace across all business lines. Net loans totaled $2.95 billion at March 31, 2017, an increase of $93 million, or 3%, compared to December 31, 2016, and an increase of $514 million, or 21%, from year-ago levels. Excluding acquisitions, loans increased $456 million or 19% from year-ago levels. During the quarter, the Company purchased a residential adjustable mortgage pool, totaling $43 million.
    • Consumer and small business originations reached $90 million, a new record level, during the current quarter.
    • After recent record quarters, commercial originations remain strong at $95 million.
    • Closed residential loans retained during the quarter reached $78 million, reflecting continued strong performance.
  • Pipelines (loans in underwriting and approval or approved and not yet closed) remain strong at $123 million in commercial, $78 million in mortgage, and $44 million in consumer and small business.
    • Commercial pipelines increased $33.9 million, or 38%, over prior quarter and $24.8 million, or 25%, over year-ago levels.
    • Mortgage pipelines increased $5.7 million, or 8%, over prior quarter and $20.6 million, or 36%, from year-ago levels.
    • Consumer and small business declined from prior quarter by $1.4 million, or 3%, and increased from year-ago levels by $12.2 million, or 38%.
  • Total deposits were $3.7 billion as of March 31, 2017, an increase of $155 million, or 4%, compared to prior quarter and an increase of $456 million, or 14%, from the first quarter 2016.
    • Deposit growth reflects our success in growing households both organically and through acquisitions. Since March 31, 2016, interest bearing deposits (interest bearing demand, savings and money markets deposits) increased $249 million, or 14%, to $2.1 billion, noninterest bearing demand deposits increased $171 million, or 16%, to $1.2 billion, and CDs increased $36 million, or 10%, to $398 million. Excluding acquired deposits, noninterest bearing deposits increased 7% and total deposits increased 3% compared to March 31, 2016.
    • The Company's balance sheet continues to be primarily core deposit funded. Core customer funding increased to $3.5 billion at March 31, 2017, a 3% increase from December 31, 2016 and a 13% increase from March 31, 2016. Excluding acquisitions, core customer funding increased by $149 million, or 5%, from one year ago.
    • Seacoast's overall cost of deposits is 0.14%, in line with the prior quarter and 0.13% in the prior year quarter, reflecting the significant value of the deposit franchise.
  • First quarter return on average assets (ROA) was 0.68%, compared to 0.94% in the prior quarter and 0.44% in the prior year quarter. Return on average tangible assets (ROTA) was 0.74%, compared to 1.00% in the prior quarter and 0.48% in the prior year quarter. Adjusted ROTA1 was 0.90% compared to 1.05% in the prior quarter and 0.80% in the prior year quarter.

Capital

  • Completed a successful public offering of 2.7 million shares of common stock on February 21, 2017, generating net proceeds of $55.7 million.
  • The common equity tier 1 capital ratio (CET1) was 12.3%, total capital ratio was 14.9% and the tier 1 leverage ratio was 10.3% at March 31, 2017.
  • Tangible common equity to tangible assets was 9.0% at March 31, 2017.

Asset Quality

  • Nonperforming loans to total loans outstanding at March 31, 2017 decreased to 0.57% from 0.62% at December 31, 2016 and from 0.63% as of March 31, 2016.
  • Nonperforming assets to total assets declined to 0.52% at March 31, 2017, compared to 0.60% at December 31, 2016 and 0.59% one year ago. Of the $25 million in nonperforming assets, $4 million relates to six closed branch properties held as REO.
  • The ratio of allowance for loan losses to non-acquisition related loans was 0.95% at March 31, 2017, 0.96% at December 31, 2016, and 1.04% at March 31, 2016.

 

 

FINANCIAL HIGHLIGHTS






(Dollars in thousands, except per share data)

1Q17

4Q16

3Q16

2Q16

1Q16









Selected Balance Sheet Data (at period end):







     Total Assets


$4,769,775

$4,680,932

$4,513,934

$4,381,204

$4,001,323

     Gross Loans



2,973,759

2,879,536

2,769,338

2,616,052

2,455,214

     Total Deposits



3,678,645

3,523,245

3,510,493

3,501,316

3,222,447









Performance Measures:








     Net Income


$7,926

$10,771

$9,133

$5,332

$3,966

     Net Interest Margin


3.63%

3.56%

3.69%

3.63%

3.68%

     Average Diluted Shares Outstanding (000)

39,499

38,252

38,170

38,142

35,453

     Diluted Earnings Per Share (EPS)

$0.20

$0.28

$0.24

$0.14

$0.11

Return on (annualized):








     Average Assets (ROA)

0.68%

0.94%

0.82%

0.51%

0.44%

     Average Tangible Assets (ROTA)

0.74

1.00

0.88

0.56

0.48

     Average Tangible Common Equity   (ROTCE)

8.77

12.51

10.91

6.62

5.13

Efficiency Ratio


71.08

62.36

68.60

78.01

81.73









Adjusted Operating Measures1:








     Adjusted Net Income

$10,270

$11,803

$11,060

$9,156

$7,049

     Adjusted Diluted EPS


0.26

0.31

0.29

0.24

0.20

     Adjusted ROTA


0.90%

1.05%

1.01%

0.89%

0.80%

     Adjusted ROTCE


10.74

13.14

12.56

10.60

8.49

     Adjusted Efficiency Ratio

64.65

60.84

63.14

64.78

69.64

     Adjusted Noninterest Expenses as a Percentage of Average Tangible Assets


2.71

2.56

2.76

2.76

3.03








Other Data







     Market Capitalization


$976,933

$838,762

$611,824

$617,007

$597,275

     Full Time Equivalent Employees


743

725

731

784

728

     Number of ATMs


76

77

80

85

71

     Full Service Banking Offices


46

47

47

57

53

Registered Online Users


71,385

67,243

66,115

61,634

55,914

Registered Mobile Users


50,729

47,131

44,128

38,619

35,098




 

First Quarter 2017 Strategic Highlights

Modernizing How We Sell

  • New households served grew by a record 1,416 new households in March. This was achieved despite having fewer branches and fewer FTEs in the retail business unit.
  • Consumer loans closed remotely increased to 33%, from 0% one year prior.
  • Consumer and small business loans originated in digital channels or by our call center grew by 38%. These are the fastest growing channels as our customers migrate to these channels for convenience.
  • Invested $200 thousand in hiring a commercial banking team, to be headquartered in Tampa, Florida with nationwide distribution, primarily serving lower middle market commercial and industrial business relationships.

Lowering Our Cost to Serve

  • Closing four locations in the first half of 2017. Costs associated with branch closures in the current quarter were $515 thousand. This consolidation effort is expected to lower operating expenses by $2.0 million on an annual basis.
  • Customers continue to move to more convenient digital channels, and we still expect non-teller transactions to surpass teller transactions by this summer.
  • Initiated a reduction in workforce initiative during the first quarter, in line with our focus on efficiency.

Driving Improvements in How Our Business Operates

  • Last June, we launched our online mortgage portal, where customers can apply online, upload documents, and track where they are in the process. In the first quarter, 51% of customers who closed a loan utilized the portal. Customer adoption has exceeded our expectations and the online portal continues to improve both our customers' experience and our lenders' efficiency. Our goal by 2020 is to replicate this across our other major product platforms.
  • In the current quarter, we opened a new call center in the Orlando area to support our growth strategy. This new location supports our 24/7 customer service model, provides us with access to a larger talent pool, and helps us strengthen our business continuity plan.
  • In the current quarter, we invested $127 thousand in relocating our secondary data center to a managed service provider environment creating reliability and scalability to support the growth of the organization.

Scaling and Evolving Our Culture

  • In January 2017, we announced key leadership changes to drive our growth strategy. Charles M. (Chuck) Shaffer was appointed CFO and head of strategy, Julie Kleffel, who has headed small-business banking for the past two years, will succeed Shaffer as EVP, Community Banking, Jeffery (Jeff) Bray was appointed EVP of Service and Operations and Joe Forlenza joined us as EVP, Chief Audit Executive. We also welcomed Al Monserrat, CEO of RES Software, a leading digital workspace technology company, to the Seacoast board of directors.
  • On April 7th, we completed our acquisition of GulfShore Bank, adding Joe Caballero as EVP, Tampa Market President, anchoring Seacoast in one of the most attractive markets in Florida.

 

1

Non-GAAP measure, see "Explanation of Certain Unaudited Non-GAAP Financial Measures." Effective in the first quarter of 2017, adjusted net income and adjusted noninterest expense exclude the effect of amortization of acquisition-related intangibles.  Prior periods have been revised to conform with the current period presentation.

 

OTHER INFORMATION

Conference Call Information

Seacoast will host a conference call on Wednesday, April 26, 2017 at 10:00 a.m. (Eastern Time) to discuss the earnings results.  Investors may call in (toll-free) by dialing (800) 774-6070 (passcode: 7756 381). Slides will be used during the conference call and may be accessed at Seacoast's website at SeacoastBanking.com by selecting "Presentations" under the heading "Investor Services."  A replay of the call will be available for one month, beginning late afternoon of April 26, by dialing (888) 843-7419 and using passcode: 7756 381.

Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast's website at SeacoastBanking.com. The link is located in the subsection "Presentations" under the heading "Investor Services." Beginning the afternoon of April 26, an archived version of the webcast can be accessed from this same subsection of the website.  The archived webcast will be available for one year.   

About Seacoast Banking Corporation of Florida (NASDAQ: SBCF)

Seacoast Banking Corporation of Florida is one of the largest community banks headquartered in Florida with approximately $4.8 billion in assets and $3.7 billion in deposits as of March 31, 2017. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, 46 traditional branches of its locally-branded wholly-owned subsidiary bank, Seacoast Bank, and five commercial banking centers. Offices stretch from Ft. Lauderdale, Boca Raton and West Palm Beach north through the Daytona Beach area, into Orlando and Central Florida, and west to Okeechobee and surrounding counties. More information about the Company is available at SeacoastBanking.com.

Cautionary Notice Regarding Forward-Looking Statements

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

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

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

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2016, 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














(Dollars in thousands, except per share data)

Three Months Ended



March 31,


December 31,


September 30,


June 30,


March 31,



2017


2016


2016


2016


2016


Summary of Earnings











Net income

$   7,926


$   10,771


$   9,133


$   5,332


$   3,966


Net interest income  (1)

38,377


37,628


37,735


34,801


30,349


Net interest margin  (1), (2)

3.63

%

3.56

%

3.69

%

3.63

%

3.68

%










.


Performance Ratios











Return on average assets-GAAP basis (2)

0.68

%

0.94

%

0.82

%

0.51

%

0.44

%

Return on average tangible assets (2),(3)

0.74


1.00


0.88


0.56


0.48


Adjusted return on average tangible assets (2), (3), (5)

0.90


1.05


1.01


0.89


0.80













Return on average shareholders' equity-GAAP basis (2)

6.89


9.80


8.44


5.15


4.30


Return on average tangible shareholders' equity-GAAP basis (2),(3)

8.77


12.51


10.91


6.62


5.13


Adjusted return on average tangible common equity (2), (3), (5)

10.74


13.14


12.56


10.60


8.49


Efficiency ratio (4)

71.08


62.36


68.60


78.01


81.73


Adjusted efficiency ratio (5)

64.65


60.84


63.14


64.78


69.64


Noninterest income to total revenue

20.61


20.96


20.68


20.89


22.21


Average equity to average assets

9.93


9.56


9.74


9.91


10.30













Per Share Data











Net income diluted-GAAP basis

$   0.20


$   0.28


$   0.24


$   0.14


$   0.11


Net income basic-GAAP basis

0.20


0.29


0.24


0.14


0.11


Adjusted earnings (5)

0.26


0.31


0.29


0.24


0.20













Book value per share common

12.34


11.45


11.45


11.20


10.91


Tangible book value per share

10.41


9.37


9.35


9.08


9.17


Cash dividends declared

0.00


0.00


0.00


0.00


0.00













Other Data











Market capitalization (6)

976,368


838,762


611,824


617,007


597,275


Full-time equivalent employees

743


725


731


784


728


Number of ATMs

76


77


80


85


71


Full service banking offices

46


47


47


57


53


Registered online users

71,385


67,243


66,115


61,634


55,914


Registered mobile devices

50,729


47,131


44,128


38,619


35,098













(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 Company defines average tangible assets as total assets less intangible assets, 

and tangible common equity as total shareholder's equity less intangible assets.

(4)

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).

(5)

Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures."  

(6)

Common shares outstanding multiplied by closing bid price on last day of each period.  

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)





SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

















QUARTER


2017


2016

(Dollars in thousands, except share and per share data)

First


Fourth


Third


Second


First











Interest on securities:










     Taxable

$   8,087


$   6,880


$   6,966


$   6,603


$   5,683

     Nontaxable

287


287


287


299


164

Interest and fees on loans

31,891


32,007


31,932


29,244


26,034

Interest on federal funds sold and other investments

510


517


429


433


290

         Total Interest Income

40,775


39,691


39,614


36,579


32,171











Interest on deposits

624


622


679


688


604

Interest on time certificates

566


598


613


550


313

Interest on borrowed money

1,420


1,046


874


848


1,032

         Total Interest Expense

2,610


2,266


2,166


2,086


1,949











         Net Interest Income

38,165


37,425


37,448


34,493


30,222

Provision for loan losses

1,304


1,000


550


662


199

         Net Interest Income After Provision for Loan Losses

36,861


36,425


36,898


33,831


30,023











Noninterest income:










     Service charges on deposit accounts

2,422


2,612


2,698


2,230


2,129

     Trust fees

880


969


820


838


806

     Mortgage banking fees

1,552


1,616


1,885


1,364


999

     Brokerage commissions and fees

377


480


463


470


631

     Marine finance fees

134


115


138


279


141

     Interchange income

2,494


2,334


2,306


2,370


2,217

     Other deposit based EFT fees

140


125


109


116


127

     BOLI income

733


611


382


379


841

     Other

1,173


1,060


963


1,065


739


9,905


9,922


9,764


9,111


8,630

     Securities gains, net

0


7


225


47


89

         Total Noninterest Income

9,905


9,929


9,989


9,158


8,719











Noninterest expenses:










     Salaries and wages

15,369


12,476


14,337


13,884


13,399

     Employee benefits

3,068


2,475


2,425


2,521


2,482

     Outsourced data processing costs

3,269


3,076


3,198


2,803


4,439

     Telephone / data lines

532


502


539


539


528

     Occupancy 

3,157


2,830


3,675


3,645


2,972

     Furniture and equipment 

1,391


1,211


1,228


1,283


998

     Marketing 

922


847


780


957


1,049

     Legal and professional fees

2,132


2,370


2,213


2,656


2,357

     FDIC assessments

570


661


517


643


544

     Amortization of intangibles

719


719


728


593


446

     Asset dispositions expense

53


84


219


160


90

     Net gain on other real estate owned and repossessed assets

(346)


(161)


(96)


(201)


(51)

     Early redemption cost for Federal Home Loan Bank advances

0


0


0


1,777


0

     Other 

3,910


3,207


3,672


3,548


3,088

         Total Noninterest Expenses

34,746


30,297


33,435


34,808


32,341











         Income Before Income Taxes

12,020


16,057


13,452


8,181


6,401

Income taxes

4,094


5,286


4,319


2,849


2,435











         Net Income

$   7,926


$   10,771


$   9,133


$   5,332


$   3,966











Per share of common stock:




















     Net income diluted

$   0.20


$   0.28


$   0.24


$   0.14


$   0.11

     Net income basic

0.20


0.29


0.24


0.14


0.11

     Cash dividends declared

0.00


0.00


0.00


0.00


0.00











Average diluted shares outstanding

39,498,836


38,252,351


38,169,863


38,141,550


35,452,968

Average basic shares outstanding

38,839,285


37,603,789


37,549,804


37,470,071


34,848,875











 

CONDENSED CONSOLIDATED BALANCE SHEETS          





(Unaudited)



SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES























March 31,


December 31,


September 30,


June 30,


March 31,

(Dollars in thousands, except share data)

2017


2016


2016


2016


2016












Assets











   Cash and due from banks


$     133,923


$        82,520


$        89,777


$    113,028


$    113,178

   Interest bearing deposits with other banks

10,914


27,124


77,606


13,774


35,450

            Total  Cash and Cash Equivalents

144,837


109,644


167,383


126,802


148,628












   Securities:











        Available for sale (at fair value)

909,275


950,503


866,613


923,560


905,182

        Held to maturity (at amortized cost)

379,657


372,498


392,138


401,570


198,231

            Total Securities 


1,288,932


1,323,001


1,258,751


1,325,130


1,103,413












   Loans held for sale


16,326


15,332


20,143


20,075


19,867












   Loans


2,973,759


2,879,536


2,769,338


2,616,052


2,455,214

   Less: Allowance for loan losses


(24,562)


(23,400)


(22,684)


(20,725)


(19,724)

            Net Loans


2,949,197


2,856,136


2,746,654


2,595,327


2,435,490












   Bank premises and equipment, net


58,611


58,684


59,035


63,817


61,416

   Other real estate owned


7,885


9,949


12,734


8,694


8,091

   Goodwill


64,649


64,649


64,649


64,123


55,196

   Other intangible assets, net


13,853


14,572


15,291


16,154


11,524

   Bank owned life insurance


85,237


84,580


44,044


43,729


43,417

   Net deferred tax assets


55,834


60,818


58,848


62,648


67,049

   Other assets


84,414


83,567


66,402


54,705


47,232

          Total Assets


$  4,769,775


$   4,680,932


$   4,513,934


$ 4,381,204


$ 4,001,323












Liabilities and Shareholders' Equity










Liabilities











   Deposits











        Noninterest demand


$  1,225,124


$   1,148,309


$   1,168,542


$ 1,146,792


$ 1,054,069

        Interest-bearing demand


870,457


873,727


776,480


776,388


750,904

        Savings


363,140


346,662


340,899


330,928


313,179

        Money market


821,606


802,697


858,931


860,930


741,657

        Other time certificates


153,840


159,887


166,987


172,816


164,388

        Brokered time certificates


66,741


7,342


8,218


9,216


11,062

        Time certificates of $100,000 or more

177,737


184,621


190,436


204,246


187,188

            Total Deposits


3,678,645


3,523,245


3,510,493


3,501,316


3,222,447












   Securities sold under agreements to repurchase

183,107


204,202


167,693


183,387


198,330

   Federal Home Loan Bank borrowings

302,000


415,000


305,000


151,000


50,000

   Subordinated debt


70,311


70,241


70,171


70,101


70,031

   Other liabilities


33,218


32,847


25,058


49,971


46,727

          Total Liabilities


4,267,281


4,245,535


4,078,415


3,955,775


3,587,535












Shareholders' Equity











    Preferred stock - CBF Subsidiary REIT





0


0


0

   Common stock


4,075


3,802


3,799


3,799


3,792

   Additional paid in capital


510,806


454,001


453,007


451,542


450,389

   Accumulated deficit


(5,731)


(13,657)


(24,427)


(33,560)


(38,892)

   Treasury stock


(1,172)


(1,236)


(691)


(482)


(88)



507,978


442,910


431,688


421,299


415,201

   Accumulated other comprehensive loss, net

(5,484)


(7,513)


3,831


4,130


(1,413)

          Total Shareholders' Equity


502,494


435,397


435,519


425,429


413,788

          Total Liabilities & Shareholders' Equity

$  4,769,775


$   4,680,932


$   4,513,934


$ 4,381,204


$ 4,001,323












Common Shares Outstanding


40,715,938


38,021,835


38,025,020


37,993,013


37,922,250












Note:  The balance sheet at December 31, 2016 has been derived from the audited financial statements at that date.

 

CONSOLIDATED QUARTERLY FINANCIAL  DATA

(Unaudited)






SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES



















QUARTERS






2017


2016

(Dollars in thousands)

First


Fourth


Third


Second


First













Credit Analysis 











   Net charge-offs (recoveries) - non-acquired loans

$             260


$             142


$         (1,328)


$          (315)


$          (539)


   Net charge-offs (recoveries) - acquired loans

(118)


141


(81)


(24)


142


   Total net charge-offs (recoveries)

$             142


$             283


$         (1,409)


$          (339)


$          (397)













   Net charge-offs (recoveries) to average loans - non-acquired loans

0.04

%

0.02

%

(0.20)

%

(0.05)

%

(0.10)

%

   Net charge-offs to average loans - acquired loans

(0.02)


0.02


(0.01)


0.00


0.03


   Total net charge-offs (recoveries) to average loans

0.02


0.04


(0.21)


(0.05)


(0.07)













   Loan loss provision (recapture) - non-acquired loans

$          1,504


$          1,161


$              649


$            423


$            (20)


   Loan loss provision (recapture) - acquired loans

(200)


(161)


(99)


239


219


   Total loan loss provision 

$          1,304


$          1,000


$              550


$            662


$            199













   Allowance for loan losses - non-acquired loans

$        24,487


$        23,243


$        22,225


$       20,248


$       19,510


   Allowance for loan losses - acquired loans

75


157


459


477


214


   Total allowance for loan losses

$        24,562


$        23,400


$        22,684


$       20,725


$       19,724













   Non-acquired loans at end of period 

$  2,572,549


$   2,425,850


$   2,272,276


$ 2,047,881


$ 1,880,421


   Purchased noncredit impaired loans at end of period 

388,229


440,690


484,006


554,519


558,262


   Purchased credit impaired loans at end of period

12,981


12,996


13,057


13,652


16,531


   Total loans

$  2,973,759


$   2,879,536


$   2,769,339


$ 2,616,052


$ 2,455,214













   Non-acquired loans allowance for loan losses to non-acquired loans at end of period

0.95

%

0.96

%

0.98

%

0.99

%

1.04

%

   Acquired loans allowance for loan losses to acquired loans at end of period

0.02


0.03


0.09


0.08


0.04


   Purchase discount to acquired loans at end of period

4.25


4.18


4.24


3.96


3.79













End of Period











   Nonperforming loans - non-acquired loans

$        10,557


$        11,023


$        10,561


$       10,919


$       11,881


   Nonperforming loans - acquired loans

6,428


7,048


7,876


4,360


3,707


   Other real estate owned - non-acquired

2,790


3,041


3,681


3,791


5,042


   Other real estate owned - acquired

1,203


1,203


1,468


1,644


2,415


   Bank branches closed included in other real estate owned

3,892


5,705


7,585


3,259


634


   Total nonperforming assets

$        24,870


$        28,020


$        31,171


$       23,973


$       23,679













   Restructured loans (accruing)

$        18,125


$        17,711


$        19,272


$       20,337


$       19,956













   Nonperforming loans to loans at end of period - non-acquired loans

0.36

%

0.38

%

0.38

%

0.42

%

0.48

%

   Nonperforming loans to loans at end of period - acquired loans

0.22


0.24


0.28


0.16


0.15


   Total nonperforming loans to loans at end of period

0.57


0.62


0.66


0.58


0.63













   Nonperforming assets to total assets - non-acquired

0.36

%

0.42

%

0.48

%

0.41

%

0.44

%

   Nonperforming assets to total assets - acquired

0.16


0.18


0.21


0.14


0.15


   Total nonperforming assets to total assets

0.52


0.60


0.69


0.55


0.59













Average Balances











   Total average assets

$  4,699,745


$   4,572,188


$   4,420,438


$ 4,206,800


$ 3,601,381


   Less: Intangible assets

78,878


79,620


80,068


69,449


37,006


   Total average tangible assets

$  4,620,867


$   4,492,568


$   4,340,370


$ 4,137,351


$ 3,564,375













   Total average equity

$     466,847


$      437,077


$      430,410


$    416,748


$    370,816


   Less: Intangible assets

78,878


79,620


80,068


69,449


37,006


   Total average tangible equity

$     387,969


$      357,457


$      350,342


$    347,299


$    333,810














March 31,


December 31,


September 30,


June 30,


March 31,


LOANS

2017


2016


2016


2016


2016













Construction and land development

$     174,991


$      160,116


$      153,901


$    142,387


$    147,594


Commercial real estate

1,349,883


1,357,592


1,293,512


1,239,508


1,171,356


Residential real estate

893,675


836,787


833,413


794,321


762,838


Installment loans to individuals

165,040


153,945


145,523


115,513


95,183


Commercial and financial

389,445


370,589


342,501


323,466


277,775


Other loans

725


507


489


857


468


       Total Loans

$  2,973,759


$   2,879,536


$   2,769,339


$ 2,616,052


$ 2,455,214













 


 

CONSOLIDATED QUARTERLY FINANCIAL  DATA


(Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES






















March 31, 


December 31, 


September 30, 


June 30,


March 31, 

(Dollars in thousands)


2017


2016


2016


2016


2016













Customer Relationship Funding 











      Noninterest demand












Commercial


$     916,940


$          860,449


$           892,876


$    860,953


$    768,890


Retail


234,109


220,134


209,351


211,722


212,367


Public funds


52,126


48,690


42,147


44,275


52,244


Other


21,949


19,036


24,168


29,842


20,568




1,225,124


1,148,309


1,168,542


1,146,792


1,054,069













      Interest-bearing demand












Commercial


117,629


102,320


100,824


102,105


101,767


Retail


613,121


591,808


567,286


549,301


496,846


Public funds


139,707


179,599


108,370


124,982


152,291




870,457


873,727


776,480


776,388


750,904













      Total transaction accounts












Commercial


1,034,569


962,769


993,700


963,058


870,657


Retail


847,230


811,942


776,637


761,023


709,213


Public funds


191,833


228,289


150,517


169,257


204,535


Other


21,949


19,036


24,168


29,842


20,568




2,095,581


2,022,036


1,945,022


1,923,180


1,804,973













      Savings


363,140


346,662


340,899


330,928


313,179













      Money market












Commercial


313,094


286,879


313,200


293,724


271,567


Retail


414,886


411,696


411,550


419,821


380,233


Public funds


93,626


104,122


134,181


147,385


89,857




821,606


802,697


858,931


860,930


741,657













      Time certificates of deposit


398,318


351,850


365,641


386,278


362,638

            Total Deposits


$  3,678,645


$       3,523,245


$       3,510,493


$ 3,501,316


$ 3,222,447













      Customer sweep accounts


$     183,107


$          204,202


$           167,693


$    183,387


$    198,330













      Total core customer funding (1)


$  3,463,434


$       3,375,597


$       3,312,545


$ 3,298,425


$ 3,058,139

























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

 

 

AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES (1) 


(Unaudited)











SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
































2017


2016








First Quarter


Fourth Quarter




Average




Yield/


Average




Yield/


Average




Yield/

(Dollars in thousands)

Balance


Interest


Rate


Balance


Interest


Rate


Balance


Interest


Rate

Assets


















Earning assets:


















    Securities:


















         Taxable

$  1,279,246


$    8,087


2.53%


$  1,251,015


$    6,880


2.20%


$     996,301


$    5,683


2.28%

         Nontaxable 

27,833


441


6.34


28,589


441


6.17


17,929


251


5.60

                   Total Securities

1,307,080


8,528


2.61


1,279,604


7,321


2.29


1,014,230


5,934


2.34



















    Federal funds sold and other


















         investments

56,771


510


3.64


90,437


517


2.28


52,213


290


2.23



















    Loans,  net

2,918,665


31,949


4.44


2,833,895


32,056


4.50


2,246,773


26,074


4.67



















                  Total Earning Assets

4,282,515


40,987


3.88


4,203,936


39,894


3.78


3,313,216


32,298


3.92



















Allowance for loan losses

(24,036)






(22,819)






(19,558)





Cash and due from banks

105,803






90,082






81,947





Premises and equipment

58,783






59,108






57,062





Intangible assets

78,878






79,620






37,006





Bank owned life insurance

84,811






48,954






43,647





Other assets

112,994






113,307






88,061























                  Total Assets

$  4,699,745






$  4,572,188






$  3,601,381























Liabilities and Shareholders' Equity


















Interest-bearing liabilities:


















      Interest-bearing demand

$     834,244


$       163


0.08%


$     812,056


$       149


0.07%


$     710,083


$       155


0.09%

      Savings

353,452


44


0.05


343,753


44


0.05


303,207


37


0.05

      Money market

803,795


417


0.21


824,440


429


0.21


667,466


412


0.25

      Time deposits

347,143


566


0.66


360,712


598


0.66


304,401


313


0.41

      Federal funds purchased and 


















        securities sold under agreements to repurchase

181,102


153


0.34


184,612


110


0.24


185,728


127


0.28

      Federal Home Loan Bank borrowings

426,144


702


0.67


339,457


392


0.46


57,308


409


2.87

      Other borrowings

70,273


565


3.26


70,197


544


3.08


69,987


496


2.85



















                     Total Interest-Bearing Liabilities

3,016,153


2,610


0.35


2,935,227


2,266


0.31


2,298,180


1,949


0.34



















Noninterest demand

1,183,813






1,167,687






906,231





Other liabilities

32,932






32,197






26,154





                     Total Liabilities 

4,232,898






4,135,111






3,230,565























Shareholders' equity

466,847






437,077






370,816























                     Total Liabilities & Equity

$  4,699,745






$  4,572,188






$  3,601,381























Interest expense as a % of earning assets  





0.25%






0.21%






0.24%

Net interest income as a % of earning assets  



$ 38,377


3.63%




$ 37,628


3.56%




$ 30,349


3.68%





































(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.

 

Explanation of Certain Unaudited Non-GAAP Financial Measures

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

Effective in the first quarter of 2017, adjusted net income and adjusted noninterest expense exclude the effect of amortization of acquisition-related intangibles.  Prior periods have been revised to conform with the current period presentation.

 

RECONCILIATION OF NON-GAAP MEASURES

SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES

(Dollars in thousands except per share data)

First
Quarter

Fourth
Quarter

Third
Quarter

Second
Quarter

First
Quarter

2017

2016

2016

2016

2016


$      7,926

$    10,771

$      9,133

$      5,332

$      3,966

Net income

BOLI income (benefits upon death)

0

0

0

0

(464)

Security gains

0

(7)

(225)

(47)

(89)

     Total Adjustments to Revenue

0

(7)

(225)

(47)

(553)







Merger related charges

533

561

1,699

2,446

4,322

Amortization of intangibles

719

719

728

593

446

Branch reductions and other expense initiatives

2,572

163

894

1,587

713

Early redemption cost for FHLB advances

0

0

0

1,777

0

     Total Adjustments to Noninterest Expense

3,824

1,443

3,321

6,403

5,481







Effective tax rate on adjustments 

(1,480)

(404)

(1,168)

(2,532)

(1,845)

     Adjusted Net Income

$   10,270

$   11,803

$   11,061

$     9,156

$     7,049

Earnings per diluted share, as reported

0.20

0.28

0.24

0.14

0.11

     Adjusted Earnings per Diluted Share 

0.26

0.31

0.29

0.24

0.20

Average shares outstanding (000)

39,499

38,252

38,170

38,142

35,453







Revenue

$    48,070

$    47,354

$    47,437

$    43,651

$    38,941

Total Adjustments to Revenue

0

(7)

(225)

(47)

(553)

     Adjusted Revenue

48,070

47,347

47,212

43,604

38,388







Noninterest Expense

34,746

30,297

33,435

34,808

32,341

Total Adjustments to Noninterest Expense

3,824

1,443

3,321

6,403

5,481

     Adjusted Noninterest Expense

30,922

28,854

30,114

28,405

26,860







Adjusted Noninterest Expense

30,922

28,854

30,114

28,405

26,860

Foreclosed property expense and net (gain)/loss on sale 

(293)

(78)

124

(41)

38

Net Adjusted Noninterest Expense

31,215

28,932

29,990

28,446

26,822







Adjusted Revenue

48,070

47,347

47,212

43,604

38,388

Impact of FTE adjustment

211

204

287

308

127

Adjusted Revenue on a fully taxable equivalent basis

48,281

47,551

47,499

43,912

38,515

     Adjusted Efficiency Ratio

64.7%

60.8%

63.1%

64.8%

69.6%







Average Assets

$4,699,745

$4,572,188

$4,420,438

$4,206,800

$3,601,390

Less average goodwill and intangible assets

(78,878)

(79,620)

(80,068)

(69,449)

(37,015)

Average Tangible Assets

4,620,867

4,492,568

4,340,370

4,137,351

3,564,375







Return on Average Assets (ROA)

0.68%

0.94%

0.82%

0.51%

0.44%

Impact of removing average intangible assets and related amortization 

0.06%

0.06%

0.06%

0.05%

0.04%

    Return on Tangible Average Assets (ROTA)

0.74%

1.00%

0.88%

0.56%

0.48%

Impact of other adjustments for Adjusted Net Income 

0.16%

0.05%

0.13%

0.33%

0.32%

    Adjusted Return on Average Tangible Assets

0.90%

1.05%

1.01%

0.89%

0.80%







Average Shareholders' Equity

$   466,846

$   437,077

$   430,410

$   416,748

$   370,816

Less average goodwill and intangible assets

(78,878)

(79,620)

(80,068)

(69,449)

(37,015)

Average Tangible Equity

387,968

357,457

350,342

347,299

333,801







Return on Average Shareholders' Equity 

6.9%

9.8%

8.4%

5.1%

4.3%

Impact of removing average intangible assets and related amortization 

1.9%

2.7%

2.5%

1.5%

0.8%

    Return on Average Tangible Common Equity (ROTCE)

8.8%

12.5%

10.9%

6.6%

5.1%

Impact of other adjustments for Adjusted Net Income 

1.9%

0.6%

1.7%

4.0%

3.4%

    Adjusted Return on Average Tangible Common Equity 

10.7%

13.1%

12.6%

10.6%

8.5%







 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/seacoast-reports-first-quarter-2017-results-300445591.html

SOURCE Seacoast Banking Corporation of Florida