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Press Release

Seacoast Banking Reports Second Quarter 2016 Results

Second Quarter EPS Increased 27% to $0.14 Sequentially; Adjusted EPS1 Increased 21% to $0.23, Driven by Strong Revenue Growth

Company Release - 7/27/2016 5:18 PM ET

STUART, Fla., July 27, 2016 /PRNewswire/ -- Seacoast Banking Corporation of Florida ("Seacoast" or "the Company") (NASDAQ: SBCF) today reported results for the second quarter of 2016. 

Seacoast Banking Corporation of Florida

Seacoast reported net income of $5.3 million during the second quarter of 2016, compared to $4.0 million in the first quarter of 2016 and $5.8 million in the second quarter last year. Quarter over quarter, return on average assets (ROA) increased 7 basis points to 0.51% and return on tangible common equity (ROTCE) increased 150 basis points to 6.6%. During the quarter, Seacoast closed the previously announced acquisition of BMO Harris' Orlando Banking operations including 14 traditional branch locations and its business banking team; and the second quarter 2016 results include $5.8 million in charges taken in conjunction with the BMO acquisition, branch closures and other non-core items1

The Company reported second quarter adjusted net income[1] of $8.8 million, a year-over-year increase of $2.7 million, or 45% and an increase of  $2.0 million, or 30% (not annualized), from the prior quarter.  Diluted earnings per common share (EPS) was $0.14 and adjusted diluted EPS1 was $0.23, a $0.04 or 21% increase above the first quarter 2016 and $0.05 or 28% above the year-ago period.

Net income for the first half of 2016 was $9.3 million compared to $11.7 million in the first half of 2015.  Diluted EPS was $0.25 compared to $0.35 in the same period of 2015.  Adjusted net income[1] increased $3.4 million to $15.5 million for the first half of 2016 and adjusted[1] diluted EPS increased 15% to $0.42.

Second Quarter 2016 Earnings Highlights

  • Adjusted revenues1 increased $9.1 million, or 26% year-over-year, to $43.7 million; and increased $4.2 million, or 11% (not annualized), from the first quarter 2016.
  • Net interest income improved $8.8 million, or 34% year-over-year, reflecting continued strong organic growth combined with the impact of strategic acquisitions.
  • Adjusted fully diluted earnings per share[1] rose to $0.23, an increase of 28% year-over-year and 21% from the first quarter 2016.
  • Adjusted return on assets1 improved nine basis points to 0.84% over first quarter 2016; the return on tangible common equity1 eclipsed the double digit mark, reaching 10.6% during the second quarter.

Second Quarter 2016 Growth Highlights  

  • Loans grew $679 million or 35% from year-ago levels.  Adjusting for acquisitions, loans grew $234 million or 12% as consumer, small business, and mortgage loan production hit record levels during the second quarter.
  • Debit card volume also reached a record high, increasing 9% over the prior quarter and 18% over Q2 2015.
  • Acquisitions continue to fuel growth.  Customers acquired from BankFirst show a 27% increase in total services 18 months from acquisition and customers acquired from the Grand Bank acquisition show a 10% improvement in total services less than a year from acquisition.    
  • Seacoast completed the acquisition and integration of BMO Harris' Orlando banking operations during June 2016, making Seacoast the largest Florida-based bank in this MSA.     

2016 Guidance

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

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

Dennis S. Hudson, III, Chairman and CEO said, "Seacoast's increase in second quarter earnings shows the operating leverage created by our balanced growth strategy.  We are sustaining our momentum in organic growth with record consumer, small business and mortgage loan expansion, combined with value-creating acquisitions and robust risk management.  These successes provided a solid step forward towards our full-year 2016 adjusted EPS1 goal of $1.00.

"Total loans increased $679 million or 35% over second quarter 2015 levels and $161 million or 7%, compared to the first quarter of this year.  Excluding acquisitions, loans grew a strong 16%, annualized, from first quarter levels and 12% above the prior year's second quarter.  We are managing a granular loan portfolio while prudently limiting commercial real estate as a percent of total capital to ensure we are well-positioned for sustainable value creation.

'We continue to execute our broader transformation, modernizing our sales and service delivery models to better align with customers' rapidly changing expectations while retaining the best aspects of traditional community banking. Digital delivery of products and services through convenient non-branch channels again drove our consumer franchise this quarter.  For example, 32% of all deposits were made outside the branch, compared to 30% in the prior quarter.  Moreover, 23% of consumer loans were originated outside the branch, compared to 16% in Q2 2015.

"We are also beginning to realize significant cost savings through the execution of our digital transformation as our multi-channel delivery of banking services enables us to trim our physical presence while keeping customer satisfaction high.  For example, we entered the year with eight Orlando branches, and acquired six Floridian and 14 BMO Harris locations in that market. By the end of the third quarter we will operate a total of 15 branches in the Orlando MSA, substantially reducing our physical presence in this market.  We will continue to prudently refine our infrastructure as we move into the future.

"Data analytics and technology-assisted operational improvement are also helping us build efficiencies across our organization and drive process automation.  For example, during the second quarter, more than 40% of new consumer loan applications were provided a decision in an automated manner and loan documents were signed electronically, providing responsiveness and efficient service for our customers and cost savings for Seacoast.

"These facets of our strategy, when taken together, produced a solid step towards our long term goals.  ROTCE grew 150 basis points and our efficiency ratio improved 370 basis points. Our adjusted ROTCE1 improved 210 basis points to double digit levels and our adjusted efficiency ratio1 declined nearly 500 basis points to 65.1%, all while maintaining appropriate guardrails around our loan portfolio.  We believe this year represents an inflection point in the execution of our strategy as we continue our growth and drive urgency in expense rationalization.  We look forward to continued success over the next quarters and beyond," Hudson concluded. 

FINANCIAL HIGHLIGHTS


2Q16


1Q16


4Q15


3Q15


2Q15


(Dollars in thousands except per share data)












Total Assets


$4,381,204


$4,001,323


$3,534,780


$3,378,108


$3,233,588


Loans 


2,616,052


2,455,214


2,156,330


2,099,447


1,937,399


Deposits


3,501,316


3,222,447


2,844,387


2,742,296


2,605,177














Net Income 


5,332


3,966


6,036


4,441


5,805


Diluted Earnings Per Share    


0.14


0.11


0.18


0.13


0.18


Return on Average Assets (ROA)


0.51

%

0.44

%

0.69

%

0.52

%

0.72

%

Return on Average Tangible    


6.6


5.1


7.8


5.9


8.2


     Common Equity (ROTCE)












Net Interest Margin


3.63


3.68


3.67


3.75


3.50


Efficiency Ratio


78.0


81.7


72.6


76.3


68.6


Pretax, Pre-provision Income (1)


$8,842


$6,600


$10,130


$8,126


$10,224














Average Diluted Shares


38,142


35,453


34,395


34,194


33,234


     Outstanding (000)












Adjusted Net Income (1)


$8,773


$6,758


$6,569


$6,232


$6,031


Adjusted Diluted Earnings   


0.23


0.19


0.19


0.18


0.18


     Per Share (1)












Adjusted ROA (1)


0.84

%

0.75

%

0.75

%

0.77

%

0.75

%

Adjusted ROTCE (1)


10.6


8.5


8.9


8.2


8.7


Adjusted Efficiency Ratio (1)


65.1


70.0


69.1


69.4


68.4


Adjusted Pretax, Pre-provision        


$14,607


$11,082


$10,990


$10,990


$10,589


     Income (1)
























Annualized Adjusted 












     Operating Expenses as a Percent 












     of Average Assets (1)


2.77

%

3.05

%

3.00

%

3.10

%

2.98

%

 

 

Acquisitions Update
Hudson noted, "We are pleased to have completed the acquisition of BMO Harris' Orlando banking operations and we look forward to introducing Seacoast's product and services to these newly acquired customers.  We completed the BMO Harris integration in early June, one quarter after closing on our acquisition of Floridian Financial. These acquisitions bring together three established central-Florida franchises and propel Seacoast to a top-ten position in Orlando, making us the largest Florida based bank in that market. The BMO Harris acquisition is yet another in the recent series of successful acquisitions that have provided us with opportunity to further deploy our model of digital service delivery. 

"As a result of these recent acquisitions, as well as the successful integration of our BankFirst and Grand Bank branches, we continue to drive incremental value creation within Orlando and Palm Beach markets. Organic household growth remains very strong and cross sell statistics are above the healthy growth rates in our legacy markets," Hudson concluded.

Florida Economic Update
"Florida continues to gain recognition for its strong economy and business friendly environment," Hudson commented.  "Job growth continues to outpace the nation by a wide margin. A recent Wells Fargo Economics Group research report, dated May 2016, commented, 'While hiring decelerated in most of the country in May, Florida employers continued to add jobs at a breakneck pace. Following April's upwardly revised gain of 34,900 jobs, the state added another 24,500 jobs in May.'"

"Additionally, Florida made CNBC's 2016 top-ten list of the 'Best states for Business', citing a vibrant economy, solid infrastructure and strong workforce as top factors," Hudson concluded. "Florida's economic strength continues to serve as a tailwind as we execute on our fundamental business plan."

https://www08.wellsfargomedia.com/assets/pdf/commercial/insights/economics/regional-reports/fl-employment-20160617.pdf

Second Quarter 2016 Income Statement Highlights

Organic Growth along with Merger Activity Drives Net Interest Income Growth
Net interest income for the quarter totaled $34.8 million, a $9.0 million or 35% increase from second quarter 2015 levels.  Net interest margin expanded to 3.63%, a 13 basis point increase from the prior year. Year-over-year net interest income and margin increases reflect improved balance sheet mix combined with favorable yield / cost trends on all major asset and liability classes. Acquisition activity also contributed to net interest income gains as Seacoast welcomed customers from Floridian and BMO Harris, and continued to grow relationships with customers of other recent acquisitions. 

Net interest income increased $4.5 million in the second quarter of 2016 compared to the first quarter of 2016, while net interest margin decreased five basis points from 3.68% in the prior quarter. The net interest income improvement was built through continued organic and acquisition-related loan growth as well as purchases of investment securities in anticipation of the BMO Harris acquisition, which added deposits of $317 million and $64 million of business banking loans.  Investment securities leverage, combined with additional liquidity at the time of the acquisition, was the main contributor to net interest margin decline.

Noninterest Income Growth Driven by Franchise Growth
Noninterest income excluding securities gains, totaled $9.1 million for the second quarter of 2016, $0.3 million above $8.8 million recorded in the second quarter of 2015.  Included in second quarter 2015's noninterest income was a $725,000 gain on participated loan. Adjusting for the gain on the participated loan, fee income increased $1.0 million or 12%. Significant contributors to the increase in noninterest income include mortgage banking revenue of $1.4 million, which increased $0.3 million or 33% from the year-ago period reflecting record originations. Strong increases in interchange income and deposit service charges, up 17% and 5%, respectively, reflect intentional customer analytics-driven cross sell combined with strong household growth and customer engagement.   

Noninterest income excluding securities gains, increased $481,000 or 6% (not annualized) from first quarter 2016 levels.  First quarter 2016 noninterest income included $464,000 in unanticipated non-taxable income related to the Bank's investment in bank owned life insurance (BOLI).  Excluding securities gains and the unanticipated BOLI income for first quarter 2016, noninterest income increased $945,000 or 11% from first quarter.  Strength in mortgage banking revenue, as well as transaction-based fees such as interchange and deposit service charges also added to the linked-quarter gain.  Other noninterest income increased at a strong pace, representing growth in our businesses and returns on certain CRA investments.    

Noninterest Expense Reflects Merger Activity and Other Investments in Seacoast Strategy
Noninterest expense increased $10.5 million from the second quarter of 2015, largely driven by $5.8 million in expense related to the acquisition of 14 branch offices from BMO Harris on June 3, 2016 and other non-core expenses.  Adjusted noninterest expense1 increased $5.1 million from prior-year levels.  The year-over-year increase in adjusted expense reflects ongoing costs related to the 2015 and 2016 acquisitions of Grand Bankshares and Floridian Financial Group and BMO Harris' Orlando operations.  Expenses also reflect support of organic growth of and investment in the franchise. Larger drivers include salary and benefits costs, occupancy and equipment and data processing expense, largely from acquisition activity.  While adjusted noninterest expense grew 21% compared to prior year levels, revenues, excluding securities gains, grew 26% - providing 5% operating leverage.

Noninterest expense increased $2.5 million from the first quarter, 2016.  Adjusted noninterest expense1 grew $1.7 million or 6%. Contributing to the higher adjusted noninterest expense during the second quarter of 2016 were salary and benefits costs, occupancy and equipment and data processing expense, largely from acquisition activity. 

Second Quarter 2016 Balance Sheet Highlights

Strong Originations and Acquisition Activity Continue Loan Portfolio Build
Total loans were $2.62 billion, an increase of $679 million or 35% from the second quarter 2015.  Excluding acquired loans, loans increased $234 million or 12% above the prior year.  Loans increased $161 million or 7% (not annualized) from first quarter 2016.  Adjusted for the BMO Harris acquisition, loans increased $97 million or 4.0% (not annualized) linked-quarter.    

Loan production continued at a strong pace across all business lines. Commercial loan originations for the quarter exceeded $111 million, well ahead of 2015 levels, with the commercial pipeline (in underwriting and approval or approved and not yet closed) totaling $113 million at June 30, 2016. Consumer loan and small business originations totaled $81 million during the second quarter of 2016 compared to $55 million one year ago.

Closed residential production for the quarter totaled $104 million compared with $82 million during the second quarter 2015, with a total residential pipeline of $66 million as of June 30, 2016, up from $54 million one year ago.

(Dollars in thousands)


2Q16

1Q16

4Q15

3Q15

2Q15








Commercial pipeline


$113,261

$97,953

$105,556

$104,915

$108,538

Commercial loans closed


111,133

67,252

80,003

71,823

85,815

Total Commercial loan originations and pipeline


$224,394

$165,205

$185,559

$176,738

$194,353








Residential pipeline


$66,083

$57,739

$30,340

$37,958

$53,902

Residential loans retained


64,003

36,335

24,905

36,027

45,596

Residential loans sold


39,499

30,345

35,278

37,996

36,182

Total Residential loan originations and pipeline


$169,585

$124,419

$90,523

$111,981

$135,680

 

Credit Quality Remains Stable and Strong
The provision for loan losses was $662,000 for the second quarter of 2016, down from $855,000 in the second quarter 2015 and above $463,000 recorded in the first quarter 2016.  The decrease in provision was driven by strong credit metrics, including $339,000 in net recoveries collected during the quarter, offset by the impact of continued loan growth. The ratio of allowance for loan losses to non-acquired loans was 1.01% as of June 30 2016, a slight decrease from 1.03% as of December 31, 2015. 

Additional highlights include:

  • Nonperforming loans to total loans outstanding at the end of the second quarter decreased to 0.58%, down from 1.01% as of June 30, 2015;
  • Nonperforming assets to total assets declined to 0.55%, compared to 0.79% one year ago.

Deposits Built on Core Customer Growth and Acquired Deposits
Total deposits increased $3.5 billion, 34% above the second quarter 2015.  Core customer funding increased to $3.30 billion, an $828 million or 34% increase.  Excluding acquisitions, core customer funding increased by $158 million or 6% and total deposits increased $67 million or 3% above the second quarter 2015.  Core customer funding increased $240 million or 8% (not annualized) and total deposits grew $279 million or 9% (not annualized), compared to the prior quarter.  Excluding acquired deposits, core customer funding decreased slightly, by $16 million from end of first quarter 2016 levels, reflecting normal seasonality.

Noninterest demand deposits grew $93 million or 9% (not annualized) from the first quarter of 2016 and $338 million or 42% from the second quarter of 2015.  Excluding acquired deposits, noninterest demand deposits increased $140 million or 17% from the end of the second quarter 2015 and represent a strong 33% of total deposits.

(Dollars in thousands)


Second
Quarter
2016

First
Q
uarter
2016


Fourth
Quarter
2015

Third
Quarter
2015


Second
Quarter
2015


Customer Relationship Funding











Noninterest demand 


$1,146,791

$1,054,069


$  854,447

$  869,877


$  808,429



Interest-bearing demand


776,389

750,904


734,749

618,344


599,268



Money market


860,930

741,657


665,353

660,632


621,973



Savings


330,928

313,179


295,851

286,810


282,588



Time certificates of deposit


386,278

362,638


293,987

306,633


292,919




Total deposits


$3,501,316

$3,222,447


$2,844,387

$2,742,296


$2,605,177



Customer sweep accounts


$183,387

$198,330


$172,005

$148,607


$157,676



Total core customer funding (1)


$3,298,425

$3,058,139


$2,722,405

$2,584,270


$2,469,934



Demand deposit mix 
 (noninterest bearing)


32.8%

32.7%


30.0%

31.7%


31.0%



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

 

Other Highlights

Capital Ratios Remain Strong
As expected, capital ratios decreased in conjunction with the BMO Harris acquisition and remain well above regulatory requirements for well-capitalized institutions. The common equity tier 1 capital ratio (CET1) is estimated at 10.9% and the total capital ratio is estimated at 13.4% at June 30, 2016.  The tier 1 leverage ratio is estimated at 9.3% at June 30, 2016.  Ratios are down slightly as earnings during the first and second quarter were offset by acquisition activity.

Tangible book value per share increased $0.11 to $8.98 while book value per share increased $1.25 to $11.09 compared to the second quarter of 2015.  Average tangible common equity to assets was 8.4% at June 30, 2016. 

Conference Call Information
Seacoast will host a conference call on Thursday, July 28, 2016 at 10:00 a.m. (Eastern Time) to discuss the earnings results.  Investors may call in (toll-free) by dialing (800) 697-5978 (passcode: 7908 524). 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 July 28, by dialing (888) 843-7419 and using passcode: 7908 524.

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 July 28, 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 $4.4 billion in assets and $3.5 billion in deposits as of June 30, 2016. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, 52 traditional branches of its locally-branded wholly-owned subsidiary bank, Seacoast Bank, and five commercial banking centers. Offices stretch from Ft. Lauderdale, Boca Raton and West Palm Beach north through the Daytona Beach area, into Orlando and Central Florida, and west to Okeechobee and surrounding counties. More information about the Company is available at SeacoastBanking.com.

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

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

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

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

Explanation of Certain Unaudited Non-GAAP Financial Measures
This press release contains financial information determined by methods other than Generally Accepted Accounting Principles ("GAAP").  The financial highlights provide reconciliations between GAAP net income and adjusted net income, GAAP income and adjusted pretax, pre-provision income. Management uses these non-GAAP financial measures in its analysis of the Company's performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company's performance, and if not provided would be requested by the investor community. The Company believes the non-GAAP measures enhance investors' understanding of the Company's business and performance. These measures are also useful in understanding performance trends and 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.

To better evaluate its earnings, the Company removes certain items to arrive at adjusted net income, adjusted pretax, pre-provision income and adjusted diluted earnings per share (non-GAAP measures) as detailed in the table below(2):









Second
Quarter

First
Quarter

Fourth
Quarter

Third
Quarter

Second
Quarter

(Dollars in thousands except per share data)

2016

2016

2015

2015

2015







Net income (loss)

$5,332

$3,966

$6,036

$4,441

$5,805







Boli Income

0

(464)

0

0

0

Security (gains)

(47)

(89)

(1)

(160)

0

Bargain purchase gain

0

0

(416)

0

0

     Total Adjustments to Revenue

(47)

(553)

(417)

(160)

0







Severance

464

306

187

670

29

Merger related charges

2,448

4,038

1,043

2,120

337

Branch closure charges and costs related to expense initiatives

1,121

691

0

0

0

Other

0

0

0

121

0

Miscellaneous losses

0

0

48

112

0

Early redemption cost for FHLB advances

1,777

0

0

0

0

     Total Adjustments to Noninterest Expense

5,810

5,035

1,278

3,023

366







Effective tax rate on adjustments

(2,322)

(1,690)

(328)

(1,072)

(140)

Adjusted Net Income (1)

8,773

6,758

6,569

6,232

6,031

Adjusted earnings per diluted share (1)

$  0.23

$   0.19

$   0.19

$   0.18

$   0.18

Average shares outstanding (000)

38,142

35,453

34,395

34,194

33,234







Adjusted Net Income (1)

$8,773

$6,758

$6,569

$6,232

$6,031

Provision for loan losses

662

199

369

987

855

Income taxes

5,172

4,125

4,052

3,771

3,703

Adjusted pretax, pre-provision income (1)

$14,607

$11,082

$10,990

$10,990

$10,589







Revenue

$43,604

$38,852

$36,882

$37,093

$34,512

Total Adjustments to Revenue

(47)

(553)

(417)

(160)

0

     Adjusted Revenue

$43,651

$39,405

$37,299

$37,253

$34,512













Noninterest Expense

$34,808

$32,341

$27,169

$29,127

$24,288

Total Adjustments to Noninterest Expense

5,810

5,035

1,278

3,023

366

     Adjusted Noninterest Expense

$28,998

$27,306

$25,891

$26,104

$23,922

 

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

 

FINANCIAL  HIGHLIGHTS 


(Unaudited)


07/26/16


SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES












(Dollars in thousands, except share data)

Three Months Ended


Six Months Ended



June 30,


March 31,


June 30,


June 30,


June 30,



2016


2016


2015


2016


2015


Summary of Earnings











Net income

$         5,332


$         3,966


$         5,805


$    9,298


$ 11,664


Net interest income  (1)

34,801


30,349


25,788


65,150


51,622


Net interest margin  (1), (2)

3.63


3.68


3.50


3.65


3.56













Performance Ratios











Return on average assets-GAAP basis (2), (3)

0.51

%

0.44

%

0.72

%

0.48

%

0.74

%

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

5.15


4.30


7.13


4.75


7.27


Return on average tangible shareholders' equity-GAAP basis (2), (3), (4)

6.62


5.13


8.20


5.89


8.35


Efficiency ratio (5)

78.01


81.73


68.57


79.76


68.45


Noninterest income to total revenue

20.89


22.21


25.63


21.52


23.92













Per Share Data











Net income diluted-GAAP basis

$            0.14


$            0.11


$            0.18


$       0.25


$      0.35


Net income basic-GAAP basis

0.14


0.11


0.18


0.26


0.35


Book value per share common

11.20


10.91


9.84


11.20


9.84


Tangible book value per share

9.08


9.17


8.87


9.08


8.87


Cash dividends declared

0.00


0.00


0.00


0.00


0.00














(1)  Calculated on a fully taxable equivalent basis using amortized cost.

(2)  These ratios are stated on an annualized basis and are not necessarily indicative of future periods.

(3)  The calculation of ROA and ROE do not include the mark-to-market unrealized gains (losses) because the unrealized gains (losses) are not included in net income.

(4)  The Company defines tangible common equity as total shareholder's equity less intangible assets.

(5) Defined as (noninterest expense less foreclosed property expense and amortization of intangibles) divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains and bargain purchase gain, net).

 

 

FINANCIAL  HIGHLIGHTS 


SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES













June 30,


March 31,


June 30,


(Dollars in thousands, except share data)

2016


2016


2015









Selected Financial Data







Total assets 

$  4,381,204


$  4,001,323


$  3,233,588


Securities available for sale (at fair value)

923,560


905,182


762,086


Securities held for investment (at amortized cost)

401,570


198,231


214,777


Net loans

2,595,327


2,435,490


1,918,608


Deposits 

3,501,316


3,222,447


2,605,177


Total shareholders' equity  

425,429


413,788


326,856









Average Balances (Year-to-Date)







Total average assets

$  3,904,091


$  3,601,381


$  3,188,334


Less: intangible assets

53,228


37,006


31,707


Total average tangible assets

$  3,850,863


$  3,564,375


$  3,156,627









Total average equity

$     393,782


$     370,816


$     323,359


Less: intangible assets

53,228


37,006


31,707


Total average tangible equity

$     340,554


$     333,810


$     291,652









Credit Analysis







Net (recoveries) year-to-date - non-acquired loans

$           (854)


$           (539)


$           (621)


Net charge-offs year-to-date - acquired loans

118


142


189


Total net charge-offs (recoveries) year-to-date

$           (736)


$           (397)


$           (432)









Net (recoveries) to average loans (annualized) - non-acquired loans

(0.07)

%

(0.10)

%

(0.07)

%

Net charge-offs to average loans (annualized) - acquired loans

0.01


0.03


0.02


Total net charge-offs (recoveries) to average loans (annualized)

(0.06)


(0.07)


(0.05)









Loan loss provision (recapture) year-to-date - non-acquired loans

$             403


$             (20)


$             563


Loan loss provision year-to-date - acquired loans

458


219


725


Total loan loss provision year-to-date

$             861


$             199


$         1,288









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

1.01

%

1.04

%

1.10

%

Discount for credit losses to acquired loans at end of period

3.96


3.79


3.32









Nonperforming loans - non-acquired loans

$       10,919


$       11,881


$       15,054


Nonperforming loans - acquired loans

4,360


3,707


4,543


Other real estate owned - non-acquired 

3,791


5,042


4,855


Other real estate owned - acquired 

1,644


2,415


1,053


Other real estate owned – branches out of service

3,259


634


0


Total nonperforming assets 

$       23,973


$       23,679


$       25,505









Restructured loans (accruing)

$       20,337


$       19,956


$       23,441









Purchased noncredit impaired loans

$     554,519


$     558,262


$     275,964


Purchased credit impaired loans

13,652


16,531


6,562


Total acquired loans

$     568,171


$     574,793


$     282,526









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

0.42

%

0.48

%

0.78

%

Nonperforming loans to loans at end of period - acquired loans

0.16


0.15


0.23


Total nonperforming loans to loans at end of period

0.58


0.63


1.01









Nonperforming assets to total assets - non-acquired 

0.41

%

0.44

%

0.62

%

Nonperforming assets to total assets - acquired 

0.14


0.15


0.17


Total nonperforming assets to total assets

0.55


0.59


0.79
















 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME


(Unaudited)



SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
















Three Months Ended


Six Months Ended



June 30,


June 30,

(Dollars in thousands, except per share data)


2016


2015


2016


2015










Interest on securities:









     Taxable


$        6,603


$       4,977


$      12,286


$       9,875

     Nontaxable


299


147


463


297

Interest and fees on loans


29,244


21,988


55,278


44,009

Interest on federal funds sold and other investments


433


249


723


498

         Total Interest Income


36,579


27,361


68,750


54,679










Interest on deposits


688


524


1,292


925

Interest on time certificates


550


321


863


668

Interest on borrowed money


848


850


1,880


1,710

         Total Interest Expense


2,086


1,695


4,035


3,303










         Net Interest Income


34,493


25,666


64,715


51,376

Provision for loan losses


662


855


861


1,288

         Net Interest Income After Provision for Loan Losses


33,831


24,811


63,854


50,088










Noninterest income:









     Service charges on deposit accounts


2,230


2,115


4,359


4,117

     Trust fees


838


759


1,644


1,560

     Mortgage banking fees


1,364


1,032


2,363


2,120

     Brokerage commissions and fees


470


576


1,101


1,017

     Marine finance fees


279


492


420


689

     Interchange income


2,370


2,033


4,587


3,770

     Other deposit based EFT fees


116


96


243


210

     BOLI income


379


334


1,220


664

     Gain on participated loan


0


725


0


725

     Other


1,065


684


1,804


1,282



9,111


8,846


17,741


16,154

     Securities gains, net


47


0


136


0

         Total Noninterest Income


9,158


8,846


17,877


16,154










Noninterest expenses:









     Salaries and wages


13,884


9,301


27,283


18,090

     Employee benefits


2,521


2,541


5,003


4,956

     Outsourced data processing costs


2,803


2,234


7,242


4,418

     Telephone / data lines


539


443


1,067


939

     Occupancy 


3,645


2,011


6,617


4,034

     Furniture and equipment 


1,283


819


2,281


1,551

     Marketing 


957


1,226


2,006


2,201

     Legal and professional fees


2,656


1,590


5,013


3,253

     FDIC assessments


643


520


1,187


1,109

     Amortization of intangibles


593


315


1,039


630

     Asset dispositions expense


160


173


250


316

     Net (gain)/loss on other real estate owned and repossessed assets


(201)


53


(252)


134

     Early redemption cost for Federal Home Loan Bank advances


1,777


0


1,777


0

     Other 


3,548


3,062


6,636


5,843

         Total Noninterest Expenses


34,808


24,288


67,149


47,474










         Income Before Income Taxes


8,181


9,369


14,582


18,768

Income taxes


2,849


3,564


5,284


7,104










         Net Income


$        5,332


$       5,805


$        9,298


$     11,664










Per share of common stock:


















     Net income diluted


$           0.14


$         0.18


$           0.25


$         0.35

     Net income basic


0.14


0.18


0.26


0.35

     Cash dividends declared


0.00


0.00


0.00


0.00










Average diluted shares outstanding


38,141,550


33,233,508


36,797,259


33,184,764

Average basic shares outstanding


37,470,071


32,978,006


36,159,473


32,971,670










 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
















QUARTER


2016


2015

(Dollars in thousands)

Second


First


Fourth


Third


Second











Interest on securities:










     Taxable

$        6,603


$       5,683


$       5,312


$       5,154


$       4,977

     Nontaxable

299


164


144


144


147

Interest and fees on loans

29,244


26,034


25,184


25,276


21,988

Interest on federal funds sold and other investments

433


290


275


249


249

         Total Interest Income

36,579


32,171


30,915


30,823


27,361











Interest on deposits

688


604


598


562


524

Interest on time certificates

550


313


265


295


321

Interest on borrowed money

848


1,032


952


955


850

         Total Interest Expense

2,086


1,949


1,815


1,812


1,695











         Net Interest Income

34,493


30,222


29,100


29,011


25,666

Provision for loan losses

662


199


369


987


855

         Net Interest Income After Provision for Loan Losses

33,831


30,023


28,731


28,024


24,811











Noninterest income:










     Service charges on deposit accounts

2,230


2,129


2,229


2,217


2,115

     Trust fees

838


806


791


781


759

     Mortgage banking fees

1,364


999


955


1,177


1,032

     Brokerage commissions and fees

470


631


511


604


576

     Marine finance fees

279


141


205


258


492

     Interchange income

2,370


2,217


1,989


1,925


2,033

     Other deposit based EFT fees

116


127


99


88


96

     BOLI income

379


841


396


366


334

     Gain on participated loan

0


0


0


0


725

     Other

1,065


739


607


666


684


9,111


8,630


7,782


8,082


8,846

     Securities gains, net

47


89


1


160


0

     Bargain purchase gain, net

0


0


416


0


0

         Total Noninterest Income

9,158


8,719


8,199


8,242


8,846











Noninterest expenses:










     Salaries and wages

13,884


13,399


11,135


11,850


9,301

     Employee benefits

2,521


2,482


2,178


2,430


2,541

     Outsourced data processing costs

2,803


4,439


2,455


3,277


2,234

     Telephone / data lines

539


528


412


446


443

     Occupancy 

3,645


2,972


2,314


2,396


2,011

     Furniture and equipment 

1,283


998


1,000


883


819

     Marketing 

957


1,049


1,128


1,099


1,226

     Legal and professional fees

2,656


2,357


2,580


2,189


1,590

     FDIC assessments

643


544


551


552


520

     Amortization of intangibles

593


446


397


397


315

     Asset dispositions expense

160


90


79


77


173

     Net (gain)/loss on other real estate owned and repossessed assets

(201)


(51)


(157)


262


53

     Early redemption cost for Federal Home Loan Bank advances

1,777


0


0


0


0

     Other 

3,548


3,088


3,097


3,269


3,062

         Total Noninterest Expenses

34,808


32,341


27,169


29,127


24,288











         Income Before Income Taxes

8,181


6,401


9,761


7,139


9,369

Income taxes

2,849


2,435


3,725


2,698


3,564











         Net Income

$        5,332


$       3,966


$       6,036


$       4,441


$       5,805











Per share of common stock:




















     Net income diluted

$           0.14


$         0.11


$         0.18


$         0.13


$         0.18

     Net income basic

0.14


0.11


0.18


0.13


0.18

     Cash dividends declared

0.00


0.00


0.00


0.00


0.00











Average diluted shares outstanding

38,141,550


35,452,968


34,395,373


34,193,540


33,233,508

Average basic shares outstanding

37,470,071


34,848,875


34,115,697


33,907,178


32,978,006











 

 

CONDENSED CONSOLIDATED BALANCE SHEETS          


(Unaudited)

SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES












June 30,


December 31,


June 30,

(Dollars in thousands, except share data)


2016


2015


2015








Assets







   Cash and due from banks


$      113,028


$        81,216


$       86,904

   Interest bearing deposits with other banks


13,774


54,851


7,844

            Total  Cash and Cash Equivalents


126,802


136,067


94,748








   Securities:







        Available for sale (at fair value)


923,560


790,766


762,086

        Held for investment (at amortized cost)


401,570


203,525


214,777

            Total Securities 


1,325,130


994,291


976,863








   Loans held for sale


20,075


23,998


19,656








   Loans


2,616,052


2,156,330


1,937,399

   Less: Allowance for loan losses


(20,725)


(19,128)


(18,791)

            Net Loans


2,595,327


2,137,202


1,918,608








   Bank premises and equipment, net


63,817


54,579


50,028

   Other real estate owned


8,694


7,039


5,908

   Goodwill


64,123


25,211


25,211

   Other intangible assets


16,154


8,594


6,824

   Bank owned life insurance


43,729


43,579


36,291

   Net deferred tax assets


62,648


60,274


58,631

   Other assets


54,705


43,946


40,820



$  4,381,204


$   3,534,780


$ 3,233,588








Liabilities and Shareholders' Equity







Liabilities







   Deposits







        Noninterest demand


$  1,146,792


$      854,447


$    808,429

        Interest-bearing demand


776,388


734,749


599,268

        Savings


330,928


295,851


282,588

        Money market


860,930


665,353


621,973

        Other time certificates


172,816


153,318


158,091

        Brokered time certificates


9,216


9,403


8,237

        Time certificates of $100,000 or more


204,246


131,266


126,591

            Total Deposits


3,501,316


2,844,387


2,605,177








   Securities sold under agreements to repurchase


183,387


172,005


157,676

   Federal Home Loan Bank borrowings


151,000


50,000


65,000

   Subordinated debt


70,101


69,961


64,670

   Other liabilities


49,971


44,974


14,209



3,955,775


3,181,327


2,906,732








Shareholders' Equity







   Common stock


3,799


3,435


3,300

   Additional paid in capital


451,542


399,162


380,553

   Accumulated deficit


(33,560)


(42,858)


(53,336)

   Treasury stock


(482)


(73)


(64)



421,299


359,666


330,453

   Accumulated other comprehensive (loss), net


4,130


(6,213)


(3,597)

            Total Shareholders' Equity


425,429


353,453


326,856



$  4,381,204


$   3,534,780


$ 3,233,588








Common Shares Outstanding


37,993,013


34,351,409


33,220,511









Note:  The balance sheet at December 31, 2015 has been derived from the audited financial statements at that date.

 

 

CONSOLIDATED QUARTERLY FINANCIAL  DATA


(Unaudited)






SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES




















QUARTERS


2016


2015

(Dollars in thousands, except per share data)

Second


First


Fourth


Third


Second


Net income

$          5,332


$          3,966


$          6,036


$            4,441


$          5,805













Operating Ratios











   Return on average assets-GAAP basis (2),(3)

0.51

%

0.44

%

0.69

%

0.52

%

0.72

%

   Return on average tangible assets (2),(3),(4)

0.56


0.48


0.73


0.56


0.75


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

5.15


4.30


6.78


5.05


7.13


   Efficiency ratio (5)

78.01


81.73


72.57


76.29


68.57


   Noninterest income to total revenue

20.89


22.21


21.10


21.79


25.63













   Net interest margin (1),(2)

3.63


3.68


3.67


3.75


3.50


   Average equity to average assets

9.91


10.30


10.20


10.34


10.12













Credit Analysis Excluding Acquired Loans











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

$            (315)


$            (539)


$              245


$             (233)


$            (358)


   Net charge-offs - acquired loans

(24)


142


324


683


143


   Total net charge-offs (recoveries)

$            (339)


$            (397)


$              569


$               450


$            (215)













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

(0.05)

%

(0.10)

%

0.05

%

(0.04)

%

(0.08)

%

   Net charge-offs to average loans - acquired loans

0.00


0.03


0.06


0.12


0.03


   Total net charge-offs (recoveries) to average loans

(0.05)


(0.07)


0.11


0.08


(0.05)













   Loan loss provision (recapture) - non-acquired loans

$              423


$              (20)


$              (40)


$               852


$              271


   Loan loss provision - acquired loans

239


219


409


135


584


   Total loan loss provision 

$              662


$              199


$              369


$               987


$              855













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

1.01

%

1.04

%

1.03

%

1.11

%

1.10

%

   Discount for credit losses to acquired loans at end of period

3.96


3.79


4.24


4.13


3.32













   Nonperforming loans - non-acquired loans

$        10,919


$        11,881


$        12,758


$         14,474


$        15,054


   Nonperforming loans - acquired loans

4,360


3,707


4,628


2,636


4,543


   Other real estate owned - non-acquired

3,791


5,042


3,699


4,183


4,855


   Other real estate owned - acquired

1,644


2,415


3,340


3,250


1,053


   Other real estate owned – branches out of service

3,259


634


0


0


0


   Total nonperforming assets

$        23,973


$        23,679


$        24,425


$         24,543


$        25,505













  Restructured loans (accruing)

$        20,337


$        19,956


$        19,970


$         20,543


$        23,441













  Purchased noncredit impaired loans

$      554,519


$      558,262


$      320,349


$       355,739


$      284,978


  Purchased credit impaired loans

13,652


16,531


12,109


12,673


6,562


  Total acquired loans

$      568,171


$      574,793


$      332,458


$       368,412


$      291,540













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

0.42

%

0.48

%

0.59

%

0.69

%

0.78

%

   Nonperforming loans to loans at end of period - acquired loans

0.16


0.15


0.22


0.12


0.23


   Total nonperforming loans to loans at end of period

0.58


0.63


0.81


0.81


1.01













   Nonperforming assets to total assets - non-acquired

0.41

%

0.44

%

0.47

%

0.55

%

0.62

%

   Nonperforming assets to total assets - acquired

0.14


0.15


0.22


0.18


0.17


   Total nonperforming assets to total assets

0.55


0.59


0.69


0.73


0.79













Per Share Common Stock











   Net income diluted-GAAP basis

$             0.14


$             0.11


$             0.18


$              0.13


$             0.18


   Net income basic-GAAP basis

0.14


0.11


0.18


0.13


0.18













   Cash dividends declared

0.00


0.00


0.00


0.00


0.00


   Book value per share common

11.20


10.91


10.29


10.20


9.84













Average Balances











Total average assets

$   4,206,800


$   3,601,381


$   3,463,277


$    3,373,858


$   3,225,127


Less: Intangible assets

69,449


37,006


34,457


35,185


32,188


Total average tangible assets

$   4,137,351


$   3,564,375


$   3,428,820


$    3,338,673


$   3,192,939













Total average equity

$      416,748


$      370,816


$      353,392


$       348,901


$      326,338


Less: Intangible assets

69,449


37,006


34,457


35,185


32,188


Total average tangible equity

$      347,299


$      333,810


$      318,935


$       313,716


$      294,150



(1) Calculated on a fully taxable equivalent basis using amortized cost.

(2) These ratios are stated on an annualized basis and are not necessarily indicative of future periods.

(3) The calculation of ROA and ROE do not include the mark-to-market unrealized gains (losses), because the unrealized gains (losses) are not included in net income (loss).

(4) The Company believes that return on average assets and equity excluding the impacts of noncash amortization expense on intangible assets is a better measurement of the Company's trend in earnings growth.

(5) Defined as (noninterest expense less foreclosed property expense and amortization of intangibles) divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains and bargain purchase gain, net).

 



June 30,


December 31,


June 30,


SECURITIES 


2016


2015


2015










U.S. Treasury and U.S. Government Agencies


$        13,560


$            3,911


$          3,843


Mortgage-backed


601,392


539,688


558,561


Collateralized loan obligations


123,019


122,583


124,241


Obligations of states and political subdivisions


64,435


39,891


22,873


Corporate and other debt securities


77,699


44,273


31,981


Private commercial mortgage backed securities


43,455


40,420


20,587


   Securities Available for Sale


923,560


790,766


762,086










Mortgage-backed


360,126


162,225


173,477


Collateralized loan obligations


41,444


41,300


41,300


   Securities Held for Investment


401,570


203,525


214,777


       Total Securities


$   1,325,130


$       994,291


$      976,863




























June 30,


December 31,


June 30,


LOANS


2016


2015


2015










Construction and land development


$      142,387


$       108,787


$        95,178


Real estate mortgage


2,033,829


1,733,163


1,588,105


Installment loans to individuals


115,513


85,356


62,913


Commercial and financial


323,466


228,517


190,325


Other loans


857


507


878


       Total Loans


$   2,616,052


$    2,156,330


$   1,937,399










 

 

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


(Unaudited)





SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


























2016


2015


Second Quarter


First Quarter


Second Quarter


Average




Yield/


Average




Yield/


Average




Yield/

(Dollars in thousands)

Balance


Interest


Rate


Balance


Interest


Rate


Balance


Interest


Rate

Assets


















Earning assets:


















    Securities:


















         Taxable

$      1,185,022


$        6,603


2.23%


$       996,301


$      5,683


2.28%


$      957,374


$    4,977


2.08%

         Nontaxable 

28,445


459


6.45


17,929


251


5.60


15,311


225


5.87

                   Total Securities

1,213,468


7,062


2.33


1,014,230


5,934


2.34


972,685


5,202


2.14



















    Federal funds sold and other


















         investments

110,636


433


1.57


52,213


290


2.23


79,031


249


1.26



















    Loans,  net

2,532,533


29,392


4.67


2,246,773


26,074


4.67


1,904,011


22,032


4.64



















                  Total Earning Assets

3,856,637


36,887


3.85


3,313,216


32,298


3.92


2,955,727


27,483


3.73



















Allowance for loan losses

(20,185)






(19,558)






(18,247)





Cash and due from banks

92,159






81,947






71,858





Premises and equipment

63,149






57,062






49,275





Intangible assets

69,449






37,006






32,188





Bank owned life insurance

43,542






43,647






36,111





Other assets

102,049






88,061






98,215
























$      4,206,800






$    3,601,381






$   3,225,127























Liabilities and Shareholders' Equity


















Interest-bearing liabilities:


















      Interest-bearing demand

$         755,206


$           161


0.09%


$       710,083


$         155


0.09%


$      612,433


$        110


0.07%

      Savings

322,567


39


0.05


303,207


37


0.05


279,354


41


0.06

      Money market

810,709


488


0.24


667,466


412


0.25


607,271


373


0.25

      Time deposits

366,263


550


0.60


304,401


313


0.41


303,802


321


0.42

      Federal funds purchased and 


















        securities sold under agreements to repurchase

195,802


129


0.26


185,728


127


0.28


167,903


77


0.18

      Federal Home Loan Bank borrowings

171,011


215


0.51


57,308


409


2.87


50,165


400


3.20

      Other borrowings

70,064


504


2.89


69,987


496


2.85


64,649


373


2.31



















                     Total Interest-Bearing Liabilities

2,691,622


2,086


0.31


2,298,180


1,949


0.34


2,085,577


1,695


0.33



















Noninterest demand

1,059,039






906,231






795,707





Other liabilities

39,391






26,154






17,505





                     Total Liabilities 

3,790,052






3,230,565






2,898,789























Shareholders' equity

416,748






370,816






326,338
























$      4,206,800






$    3,601,381






$   3,225,127























Interest expense as a % of earning assets  





0.22%






0.24%






0.23%

Net interest income as a % of earning assets  



$      34,801


3.63%




$    30,349


3.68%




$  25,788


3.50%






































(1) On a fully taxable equivalent basis.  All yields and rates have been computed on an annualized basis using amortized cost. Fees on loans have been included in interest on loans.  Nonaccrual loans are included in loan balances.

 

 

CONSOLIDATED QUARTERLY FINANCIAL  DATA

(Unaudited)





SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES





















2016


2015

(Dollars in thousands)


Second Quarter


First Quarter


Fourth Quarter


Third Quarter


Second Quarter













Customer Relationship Funding (Period End)










      Noninterest demand












Commercial


$            860,953


$           768,890


$         592,621


$          619,960


$         561,742


Retail


211,722


212,367


198,077


182,381


180,484


Public funds


44,275


52,244


46,300


47,765


47,913


Other


29,842


20,568


17,449


19,771


18,290




1,146,792


1,054,069


854,447


869,877


808,429













      Interest-bearing demand












Commercial


102,105


101,767


77,500


69,037


60,411


Retail


549,301


496,846


479,056


443,022


410,601


Public funds


124,982


152,291


178,193


106,285


128,256




776,388


750,904


734,749


618,344


599,268













      Total transaction accounts












Commercial


963,058


870,657


670,121


688,997


622,153


Retail


761,023


709,213


677,133


625,403


591,085


Public funds


169,257


204,535


224,493


154,050


176,169


Other


29,842


20,568


17,449


19,771


18,290




1,923,180


1,804,973


1,589,196


1,488,221


1,407,697













      Savings


330,928


313,179


295,851


286,810


282,588













      Money market












Commercial


293,724


271,567


208,520


225,629


191,061


Retail


419,821


380,233


312,756


306,138


272,853


Public funds


147,385


89,857


144,077


128,865


158,059




860,930


741,657


665,353


660,632


621,973













      Time certificates of deposit


386,278


362,638


293,987


306,633


292,919

            Total Deposits


$         3,501,316


$        3,222,447


$      2,844,387


$       2,742,296


$      2,605,177













      Customer sweep accounts


$            183,387


$           198,330


$         172,005


$          148,607


$         157,676













      Total core customer funding (1)


$         3,298,425


$        3,058,139


$      2,722,405


$       2,584,270


$      2,469,934


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

 

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SOURCE Seacoast Banking Corporation of Florida