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Press Release

Seacoast Reports Third Quarter 2016 EPS Increased 85% on Record Loan Production and Expense Management

Company Release - 10/26/2016 6:16 PM ET

STUART, Fla., Oct. 26, 2016 /PRNewswire/ -- Seacoast Banking Corporation of Florida ("Seacoast" or "the Company") (NASDAQ: SBCF) today reported results for the third quarter of 2016.

Seacoast reported net income of $9.1 million during the third quarter of 2016, a 106% or $4.7 million increase from the third quarter of 2015 and an increase of $3.8 million, or 71%, compared to the second quarter of 2016.  Third quarter return on average assets (ROA) increased 31 basis points quarter-over-quarter to 0.82%, return on average equity increased 329 basis points to 8.4% and return on average tangible common equity1 (ROTCE) increased 429 basis points to 10.9%.  Third quarter 2016 results include $2.6 million in costs related to consolidation of branches acquired through the BMO Harris acquisition and other nonrecurring items1.

Seacoast reported third quarter adjusted net income1 of $10.6 million, a 70% or $4.4 million increase year-over-year, and an increase of  $1.8 million, or 21% (not annualized), from the prior quarter.  Diluted earnings per common share (EPS) was $0.24, up 71% from $0.14 in the prior quarter and up 85% from $0.13 in the third quarter of 2015.  Adjusted diluted EPS1 was $0.28, a $0.05 or 22% increase from the second quarter of 2016 and a gain of $0.10 or 56% from the year-ago period.

Net income for the first nine months of 2016 was $18.4 million compared to $16.1 million in the first nine months of 2015.  Diluted EPS was $0.49 compared to $0.48 in the same period of 2015.  Adjusted net income1 increased $7.8 million to $26.1 million for the first nine months of 2016 and adjusted1 diluted EPS increased 27% to $0.70.

Third Quarter 2016 Financial Highlights

  • Total revenues increased $10.2 million, or 27% year-over-year to $47.4 million and increased $3.8 million, or 9% (not annualized), from the prior quarter.
  • Net interest income increased $8.4 million or 29% year over year and $3.0 million or 9% above second quarter levels. Net interest margin increased six basis points, linked quarter, to 3.69%.
  • Adjusted fully diluted earnings per share1 rose to $0.28, an increase of 56% year-over-year and 22% from the second quarter of 2016.
  • Adjusted return on assets1 was 0.95%, an eleven basis points improvement over second quarter 2016. Adjusted return on tangible common equity1 gained 195 basis points, reaching 12. 6% during the third quarter.

Third Quarter 2016 Growth Highlights

  • Loans grew $670 million or 32% from year-ago levels.  Adjusting for acquisitions, loan growth was $330 million or 16%.  Compared to the prior quarter, loans increased at a 23% annualized growth rate, adding $153 million sequentially.
  • Consumer, small business, and mortgage loan production all hit record levels in the third quarter.
  • Debit card spend reached a record high, up 20% from 2015 levels, as organic households grew 3.5% above third quarter 2015 levels.  Interchange income increased 20%, as a result.

2016 Guidance

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

Dennis S. Hudson, III, Chairman and CEO said, "Seacoast's continuing transformation delivered exceptional results for shareholders during the third quarter. Robust organic loan growth, combined with success serving customers gained through our recent acquisitions, enabled us to increase net interest income 29% and noninterest income 21% from last year.

"Total loans increased 23%, annualized, compared with the second quarter of this year as we achieved record volumes in our small business, consumer and residential businesses.  $27 million of third quarter loan growth was related to loan purchases during the quarter.  Excluding acquisitions, loans grew 16% compared to the third quarter of 2015.  Our pace of consumer and small business lending is helping us maintain a granular loan portfolio and enabling us to limit commercial real estate to approximately 209% of total capital.

"With strong top-line growth, Seacoast drove positive operating leverage through continued branch closures and other cost savings measures related to our Orlando acquisitions and legacy expense base.  Year-over-year revenues excluding securities gains grew 27%, outpacing the 18% increase in adjusted expenses1 during the corresponding period.

"Seacoast's performance also reflects continued success in deepening relationships with current customers.  The number of consumer loans and deposit accounts sold to existing customers increased at an annualized rate of 77% and 54% respectively, from prior year levels. Check deposits made outside the branch grew to 35% this quarter, up from 27% in the same period last year."

"The success of our balanced growth strategy is apparent in the improved tangible results for shareholders. During the last four quarters, we delivered 56% growth in adjusted diluted EPS1 while improving adjusted ROA1 and ROTCE1 metrics by 18 basis points and 440 basis points, respectively. This improvement in performance positions Seacoast well as we continue to execute against our $1 per share goal for this year and look ahead to 2017," Hudson concluded.

 

FINANCIAL HIGHLIGHTS

3Q16

2Q16

1Q16

4Q15

3Q15

(Dollars in thousands except per share data)


Total Assets


4,513,934

4,381,204

4,001,323

3,534,780

3,378,108









Loans



2,769,338

2,616,052

2,455,214

2,156,330

2,099,447









Deposits



3,510,493

3,501,316

3,222,447

2,844,387

2,742,296









Net Income


9,133

5,332

3,966

6,036

4,441









Diluted Earnings Per Share

0.24

0.14

0.11

0.18

0.13









Return on Average Assets

0.82%

0.51%

0.44%

0.69%

0.52%

(ROA)

Return on Average Tangible

10.9

6.6

5.1

7.8

5.9

     Common Equity (ROTCE)














Net Interest Margin


3.69

3.63

3.68

3.67

3.75

Efficiency Ratio


68.6

78.0

81.7

72.6

76.3









Pretax, Pre-provision Income (1)

$14,002

$8,842

$6,600

$10,130

$8,126









Average Diluted Shares






     Outstanding (000)


38,170

38,142

35,453

34,395

34,194

Adjusted Net Income (1)

$10,588

$8,773

$6,758

$6,569

$6,232

Adjusted Diluted Earnings

0.28

0.23

0.19

0.19

0.18

     Per Share (1)















Adjusted ROA (1)


0.95%

0.84%

0.75%

0.75%

0.77%

Adjusted ROTCE (1)


12.6

10.6

8.5

8.9

8.2









Adjusted Efficiency Ratio (1)

63.1

64.8

69.6

69.1

68.2

Adjusted Pretax, Pre-provision

$16,370

$14,607

$11,082

$10,990

$10,990

     Income (1)















Annualized Adjusted


2.78%

2.77%

3.05%

2.97%

3.07%

     Operating Expenses as






     a Percent of Average






     Assets (1)








 

Acquisitions Update
"Our acquisitions of Floridian Financial Corporation and the BMO Harris' Orlando banking operations in the first half of this year made Seacoast the largest Florida-based bank in Orlando, one of the nation's fastest growing MSAs," Hudson said.  "Our strong results this quarter reflect the first full quarter of revenues from these acquisitions.  During the quarter, we took the last of our redundant locations out of service, and we anticipate our fourth quarter results will benefit from the full expense reduction from these acquisitions."

Florida Economic Update
"The Florida economy continues to show broad-based strength," Hudson commented.  "An October 2016 report released by Wells Fargo Securities Economics Group commented, 'Florida's economy continues to fire on all cylinders. Output, employment, income and population growth have comfortably outpaced the nation for the past four years. Moreover, Florida's economy has continued to pick up steam over the past year while the U.S. economy lost momentum. Nonfarm employment is up 3.2 percent year-over-year, and the latest QCEW data suggest growth may be even stronger.2"

"Additionally, Florida's residential real estate market remains steady.  August statistics released by Florida REALTORS indicates a year-over-year increase in closed sales and median sales price, while the median time to contract decreased to 40 days," Hudson concluded.3

Third Quarter 2016 Income Statement Highlights

Strong Organic Growth Drives Continued Net Interest Income Improvement
Net interest income for the quarter totaled $37.4 million, an $8.4 million or 29% increase from third quarter 2015 levels.  Net interest margin was 3.69%, down six basis points from the prior year.  Year-over-year net interest income improvement reflects strong organic loan growth combined with growth from successful acquisitions in the first half of the year.  The decrease in margin reflects decreased loan yields, reflecting the current low interest rate environment, partially offset by improved balance sheet mix.

Net interest income increased $3.0 million or 9% (not annualized) compared to the second quarter of 2016 and net interest margin increased six basis points from 3.63% in the prior quarter.  Improvement reflects strong loan growth and deployment of excess liquidity held at the time of the BMO Harris acquisition in the second quarter 2016.

Noninterest Income Growth Benefits from Acquisitions, Loan Growth
Noninterest income excluding securities gains, totaled $9.8 million for the third quarter of 2016, $1.7 million or 21% above the $8.1 million recorded in the same quarter of 2015.  Significant contributors to the increase in noninterest income include mortgage banking revenue, which increased $0.7 million or 60% from the year-ago period; deposit service charges, which increased $0.5 million or 22%; interchange income, which increased $0.4 million or 20%; and other income, which increased $0.3 million or 45%.  Digitally-driven product marketing and service delivery, combined with strong organic and acquisition-related household growth, drove the growth in noninterest income during the quarter.

Noninterest income excluding securities gains, increased $0.7 million or 7% (not annualized) from second quarter 2016 levels.  Strength in mortgage banking revenue and acquisition-driven increases in deposit service charges provided significant lift despite a seasonally slower quarter.

Noninterest Expense Growth Reflects Merger Activity
Noninterest expense increased $4.3 million from the third quarter of 2015.  Third quarter 2016 expenses were impacted by $2.6 million in acquisition and other nonrecurring expenses compared to $3.0 million in the third quarter of 2015.  Adjusted noninterest expense1 increased $4.7 million from prior-year levels.  The year-over-year increase in adjusted expense reflects ongoing costs related to the acquisitions of Floridian Financial Group and BMO Harris' Orlando operations.  Expenses also reflect costs to support significant organic growth and investment in the franchise.  Revenues, excluding securities gains, grew 27% compared to prior year levels while adjusted noninterest expense1 grew 18% - providing 9% operating leverage.  Ten full-service offices were taken out of service during the third quarter of 2016, most in the Central Florida region, with an anticipated favorable reduction to noninterest expenses prospectively.

Noninterest expense decreased $1.4 million from the second quarter, 2016 due to a higher level of merger expenses recorded in the second quarter related to 2016 acquisitions.  Adjusted noninterest expense1 grew $1.8 million or 6%. Contributing to the higher adjusted noninterest expense1 during the third quarter of 2016 were salary and benefits costs, occupancy and equipment, and data processing expense, largely from acquisition activity.  Additionally, incentive costs increased with strong third quarter production.  Of note, our recent brush with Hurricane Matthew is not expected to have any material impact to noninterest expense in the fourth quarter.

Third Quarter 2016 Balance Sheet Highlights

Strong Originations Drive Loan Portfolio Even Higher
Net loans totaled $2.77 billion, an increase of $670 million or 32% above the third quarter 2015.  Excluding acquisitions, loans increased $330 million or 16% above the prior year.  Loans increased $153 million or 23%, annualized, from second quarter 2016.      

Loan production continued at a strong pace across all business lines.  Commercial loan originations for the quarter exceeded $109 million, well ahead of 2015 levels, with the commercial pipeline (in underwriting and approval or approved and not yet closed) totaling $119 million at September 30, 2016.

Consumer loan and small business originations totaled $88 million during the third quarter of 2016 compared to $53 million one year ago.  Closed residential production for the quarter totaled $114 million compared with $74 million during the third quarter 2015, with a total residential pipeline of $79 million as of September 30, 2016, up from $38 million one year ago.  $27 million of third quarter loan growth is related to marine and mortgage loan purchases made during the quarter.

(Dollars in thousands)


3Q16

2Q16

1Q16

4Q15

3Q15








Commercial pipeline


$119,394

$113,261

$97,953

$105,556

$104,915

Commercial loans closed


109,078

111,133

67,252

80,003

71,823








Residential pipeline


$79,379

$66,083

$57,739

$30,340

$37,958

Residential loans retained


68,748

64,003

36,335

24,905

36,027

Residential loans sold


79,151

39,499

30,345

35,278

37,996

 

Credit Quality Remains Stable and Strong
The provision for loan losses was $550,000 for the third quarter of 2016, down from $987,000 in the third quarter 2015 and $662,000 recorded in the second quarter 2016.  The decrease in provision was driven by strong credit results, including $1.4 million in net recoveries collected during the quarter, offset by the impact of continued loan growth. The ratio of allowance for loan losses to non-acquisition related loans was 1.00% as of September 30 2016, a slight decrease from 1.01% as of June 30, 2016.

Additional highlights include:

  • Nonperforming loans to total loans outstanding at the end of the third quarter decreased to 0.66%, down from 0.81% as of September 30, 2015;
  • Nonperforming assets to total assets declined to 0.69%, compared to 0.73% one year ago. Of $31.2 million in nonperforming assets, eleven properties at a carrying value of $7.6 million relate to closed branch properties held as REO.

Deposits Built on Core Customer Growth and Acquired Deposits
Total deposits were $3.5 billion as of September 30, 2016, $768 million or 28% above the third quarter 2015.  Core customer funding increased to $3.31 billion, a $728 million or 28% increase.  Excluding acquisitions, core customer funding increased by $218 million or 8% and total deposits increased $127 million or 5% above the third quarter 2015.  Core customer funding increased $14 million and total deposits grew $9 million compared to the second quarter 2016.  Seacoast recognized growth in deposits despite seasonal drawdowns of public funds, planned decrease in high-cost acquired certificates of deposit and significant branch consolidation.   This increase compares to a slight decrease in deposits, excluding acquired deposits, during the third quarter 2015.

Noninterest demand deposits grew $22 million or 2% (not annualized) from the second quarter of 2016 and $299 million or 34% from the third quarter of 2015.  Excluding acquired deposits, noninterest demand deposits increased $114 million over the third quarter 2015 and represent fully one-third of total deposits.

(Dollars in thousands)


Third

Quarter

2016


Second

Quarter

2016


First

Quarter

2016


Fourth

Quarter

2015


Third
Quarter

2015

Customer Relationship Funding











      Noninterest demand


$1,168,542


$1,146,792


$1,054,069


$  854,447


$  869,877

      Interest-bearing demand


776,480


776,388


750,904


734,749


618,344

      Money market


858,931


860,930


741,657


665,353


660,632

      Savings


340,899


330,928


313,179


295,851


286,810

      Time certificates of deposit


365,641


386,278


362,638


293,987


306,633

            Total deposits


$3,510,493


$3,501,316


$3,222,447


$2,844,387


$2,742,296

      Customer sweep accounts


$167,693


$183,387


$198,330


$172,005


$148,607

      Total core customer funding4


$3,312,545


$3,298,425


$3,058,139


$2,722,405


$2,584,270

  Demand deposit mix


33.3%


32.8%


32.7%


30.0%


31.7%

(noninterest bearing)



 

Other Highlights

Income Taxes
Seacoast recorded a $4.3 million income tax provision in the third quarter of 2016, compared to $2.8 million in the second quarter of 2016 and $2.7 million in the prior year.  The third quarter 2016 tax provision benefited from the early adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting.  As a result, Seacoast recorded a benefit of $418,000, adding $0.01 per diluted share.

Excluding the adoption of ASU 2016-09, the year-to-date effective tax rate was 35.7%. Implementation of this new accounting standard will continue to have an impact on the effective tax rate in future periods depending on stock-based compensation grants and their related vesting and exercise timing, as well as stock price.

Capital Ratios Remain at Strong Levels
The common equity tier 1 capital ratio (CET1) was 10.9%, total capital ratio was 13.4% and the tier 1 leverage ratio was 9.2% at September 30, 2016.  Ratios decreased slightly as average assets increased due to the BMO Harris acquisition late in the second quarter.

Tangible book value per share increased $0.27 to $9.35 while book value per share increased $0.25 to $11.45 compared to the second quarter of 2016.  Tangible common equity to assets was 8.0% at September 30, 2016.

Conference Call Information
Seacoast will host a conference call on Thursday, October 27, 2016 at 10:00 a.m. (Eastern Time) to discuss the earnings results.  Investors may call in (toll-free) by dialing (888) 517-2458 (passcode: 9762 990). 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 October 27, by dialing (888) 843-7419 and using passcode: 9762 990.

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 October 27, 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 $4.5 billion in assets and $3.5 billion in deposits as of September 30, 2016. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, 47 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
The measures entitled adjusted net income; adjusted diluted earnings per share; return on average tangible common equity; adjusted revenue; adjusted return on assets; adjusted return on average tangible common equity; adjusted efficiency ratio; adjusted pre-tax, pre-provision income; annualized adjusted operating expenses as a percent of average assets; and adjusted noninterest expense are not measures recognized under U.S. generally accepted accounting principles (GAAP) and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are net income, diluted earnings per share, return on average equity, revenues, return on average assets, return on average equity, expenses/revenues, net income, noninterest expense as a percent of average assets, and noninterest expense, respectively.

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 in facilitating 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 presents non-GAAP measures to remove or adjust for items like transaction related merger and acquisition costs or other costs or revenue items that are not related to the ongoing operations of the company as well as to adjust intangible assets and intangible asset amortization from acquired companies.  The Company believes these measures are useful to investors because removing the amount of intangible assets and amortization thereof, and removing costs and revenues not related to ongoing operations of the company (the level of which may vary from company to company and from period to period), allows investors to more easily compare the Company's capital position and financial performance to other companies in the industry that present similar measures. The Company also believes that removing these items provides a more relevant measure of the Company's financial performance from period to period. These measures are utilized by management to assess the capital adequacy and profitability of the Company.

These disclosures should not be considered an alternative to GAAP. The computations of adjusted net income; adjusted diluted earnings per share; return on average tangible common equity; adjusted revenue; adjusted return on assets; adjusted return on average tangible common equity; adjusted efficiency ratio; adjusted pre-tax, pre-provision income; annualized adjusted operating expenses as a percent of average assets; and adjusted noninterest expense and the reconciliation of these measures are set forth in the tables below.5:

 

 

Dollars in thousands except per share data)

Third

Quarter

Second
Quarter

First
Quarter

Fourth
Quarter

Third
Quarter


2016

2016

2016

2015

2015

Net income

$9,133

$5,332

$3,966

$6,036

$4,441







BOLI Income

0

0

(464)

0

0

Security gains

(225)

(47)

(89)

(1)

(160)

Bargain purchase gain

0

0

0

(416)

0

     Total Adjustments to Revenue

(225)

(47)

(553)

(417)

(160)







Severance

287

464

306

187

670

Merger related charges

1,628

2,448

4,038

1,043

2,120

Branch closure charges and costs related

678

1,121

691

0

0

to expense initiative

Other

0

0

0

0

121

Miscellaneous losses

0

0

0

48

112

Early redemption cost for FHLB advances

0

1,777

0

0

0

     Total Adjustments to Noninterest Expense

2,593

5,810

5,035

1,278

3,023







Effective tax rate on adjustments

(913)

(2,322)

(1,690)

(328)

(1,072)

Adjusted Net Income  1

10,588

8,773

6,758

6,569

6,232

Earnings per diluted share, as reported

$0.24

$0.14

$0.11

$0.18

$0.13

Adjusted earnings per diluted share 1

0.28

0.23

$0.19

0.19

0.18

Average shares outstanding (000)

38,170

38,142

35,453

34,395

34,194







Adjusted Net Income1

$10,588

$8,773

$6,758

$6,569

$6,232

Provision for loan losses

550

662

199

369

987

Income taxes

5,232

5,172

4,125

4,052

3,771

Adjusted pretax, pre-provision income 1

$16,370

$14,607

$11,082

$10,990

$10,990







Revenue

$47,437

$43,651

$38,941

$37,299

$37,253

Total Adjustments to Revenue

(225)

(47)

(553)

(417)

(160)

     Adjusted Revenue1

$47,212

$43,604

$38,388

$36,882

$37,093







Noninterest Expense

$33,435

$34,808

$32,341

$27,169

$29,127

Total Adjustments to Noninterest Expense

2,593

5,810

5,035

1,278

3,023

     Adjusted Noninterest Expense1

30,842

$28,998

$27,306

$25,891

$26,104








Adjusted Noninterest Expense

30,841

28,998

27,306

25,891

26,104


Foreclosed property expense & amortization

(851)

(553)

(484)

(324)

(736)

intangible









Net Adjusted Noninterest Expense

29,990

28,445

26,822

25,567

25,368









Adjusted Revenue

47,212

43,604

38,388

36,882

37,093









Impact of FTE adjustment

287

308

127

117

119


Adjusted Revenue on a fully taxable equivalent
basis

47,499

43,912

38,515

36,999

37,212









Adjusted Efficiency Ratio(6)

63.14%

64.78%

69.64%

69.10%

68.17%









Return on Average Assets (ROA)

0.82%

0.51%

0.44%

0.69%

0.52%


Impacted of adjustments for Adjusted Net Income
(7)

0.13

0.33

0.31

0.06

0.25


Adjusted  Return on Average Assets (Adjusted
ROA)

0.95%

0.84%

0.75%

0.75%

0.77%
















Return on Average Common Equity

8.4%

5.2%

4.3%

6.8%

5.1%


Impact of removing average intangible assets and
related amortization (8)

2.5

1.4

0.8

1.0

0.8


Return on Average Tangible Common Equity
(ROTCE)

10.9%

6.6%

5.1%

7.8%

5.9%


Impacted of adjustments for Adjusted Net Income
78)

1.7

4.0

3.4

1.1

2.3


Adjusted Return on Average Tangible
Common Equity

12.6%

10.6%

8.5%

8.9%

8.2%



 

 

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


2 https://www08.wellsfargomedia.com/assets/pdf/commercial/insights/economics/regional-reports/state-south-chartbook-20161010.pdf


3 http://www.floridarealtors.org/ResearchAndStatistics/Florida-Market-Reports/Index.cfm


4 Total deposits and customer sweep accounts, excluding time certificates of deposit.


 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


6 Defined as ( adjusted 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 adjusted noninterest income).  


7  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.  


8  Includes adjusted detailed in Total Adjustments to Revenue, Total Adjustments to Noninterest Expense and the Effective tax rate on adjustments  

 

 

FINANCIAL  HIGHLIGHTS

(Unaudited)


10/24/16


SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES




(Dollars in thousands, except share data)

Three Months Ended

Nine Months Ended



September 30,


June 30,


September 30,


September 30,


September 30,



2016


2016


2015


2016


2015


Summary of Earnings











Net income

$

9,133


$

5,332


$

4,441


$

18,431


$

16,105


Net interest income  (1)

37,735


34,801


29,130


102,885


80,752


Net interest margin  (1), (2)

3.69


3.63


3.75


3.67


3.62













Performance Ratios











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

0.82

%

0.51

%

0.52

%

0.60

%

0.66

%

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

8.44


5.15


5.05


6.06


6.49


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

10.91


6.62


5.94


7.61


7.50


Efficiency ratio (5)

68.60


78.01


76.29


75.69


71.23


Noninterest income to total revenue

20.68


20.89


21.79


21.21


23.16













Per Share Data











Net income diluted-GAAP basis

$

0.24


$

0.14


$

0.13


$

0.49


$

0.48


Net income basic-GAAP basis

0.24


0.14


0.13


0.50


0.48


Book value per share common

11.45


11.20


10.20


11.45


10.20


Tangible book value per share

9.35


9.08


9.18


9.35


9.18


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




September 30,


June 30,


September 30,


(Dollars in thousands, except share data)

2016


2016


2015









Selected Financial Data







Total assets

$

4,513,934


$

4,381,204


$

3,378,108


Securities available for sale (at fair value)

866,613


923,560


728,161


Securities held for investment (at amortized cost)

392,138


401,570


209,047


Net loans

2,746,654


2,595,327


2,080,119


Deposits

3,510,493


3,501,316


2,742,296


Total shareholders' equity

435,519


425,429


350,280









Average Balances (Year-to-Date)







Total average assets

$

4,077,463


$

3,904,091


$

3,250,855


Less: intangible assets

62,240


53,228


32,879


Total average tangible assets

$

4,015,223


$

3,850,863


$

3,217,976









Total average equity

$

406,080


$

393,782


$

331,966


Less: intangible assets

62,240


53,228


32,879


Total average tangible equity

$

343,840


$

340,554


$

299,087









Credit Analysis







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

$

(2,182)


$

(854)


$

(854)


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

37


118


872


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

$

(2,145)


$

(736)


$

18









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

(0.12)

%

(0.07)

%

(0.06)

%

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

0.01


0.01


0.06


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

(0.11)


(0.06)


0.00









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

$

1,052


$

403


$

1,415


Loan loss provision year-to-date - acquired loans

359


458


860


Total loan loss provision year-to-date

$

1,411


$

861


$

2,275









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

1.00

%

1.01

%

1.11

%

Discount for credit losses to acquired loans at end of period

4.24


3.96


4.13









Nonperforming loans - non-acquired loans

$

10,561


$

10,919


$

14,474


Nonperforming loans - acquired loans

7,876


4,360


2,636


Other real estate owned - non-acquired

3,681


3,791


4,183


Other real estate owned - acquired

1,468


1,644


3,250


Other real estate owned – branches out of service

7,585


3,259


0


Total nonperforming assets

$

31,171


$

23,973


$

24,543









Restructured loans (accruing)

$

19,272


$

20,337


$

20,543









Purchased noncredit impaired loans

$

484,006


$

554,519


$

347,262


Purchased credit impaired loans

13,057


13,652


12,673


Total acquired loans

$

497,063


$

568,171


$

359,935









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

0.38

%

0.42

%

0.69

%

Nonperforming loans to loans at end of period - acquired loans

0.28


0.16


0.12


Total nonperforming loans to loans at end of period

0.66


0.58


0.81









Nonperforming assets to total assets - non-acquired

0.48

%

0.41

%

0.55

%

Nonperforming assets to total assets - acquired

0.21


0.14


0.18


Total nonperforming assets to total assets

0.69


0.55


0.73


 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES



Three Months Ended


Nine Months Ended


September 30,


September 30,

(Dollars in thousands, except per share data)

2016


2015


2016


2015









Interest on securities:








     Taxable

$

6,966


$

5,154


$

19,253


$

15,029

     Nontaxable

287


144


749


441

Interest and fees on loans

31,932


25,276


87,210


69,285

Interest on federal funds sold and other investments

429


249


1,152


747

         Total Interest Income

39,614


30,823


108,364


85,502









Interest on deposits

679


562


1,971


1,487

Interest on time certificates

613


295


1,476


963

Interest on borrowed money

874


955


2,754


2,665

         Total Interest Expense

2,166


1,812


6,201


5,115









         Net Interest Income

37,448


29,011


102,163


80,387

Provision for loan losses

550


987


1,411


2,275

         Net Interest Income After Provision for Loan Losses

36,898


28,024


100,752


78,112









Noninterest income:








     Service charges on deposit accounts

2,698


2,217


7,057


6,334

     Trust fees

820


781


2,464


2,341

     Mortgage banking fees

1,885


1,177


4,248


3,297

     Brokerage commissions and fees

463


604


1,564


1,621

     Marine finance fees

138


258


558


947

     Interchange income

2,306


1,925


6,893


5,695

     Other deposit based EFT fees

109


88


352


298

     BOLI income

382


366


1,602


1,030

     Gain on participated loan

0


0


0


725

     Other

963


666


2,767


1,948


9,764


8,082


27,505


24,236

     Securities gains, net

225


160


361


160

         Total Noninterest Income

9,989


8,242


27,866


24,396









Noninterest expenses:








     Salaries and wages

14,337


11,850


41,620


29,940

     Employee benefits

2,425


2,430


7,428


7,386

     Outsourced data processing costs

3,198


3,277


10,440


7,695

     Telephone / data lines

539


446


1,606


1,385

     Occupancy

3,675


2,396


10,292


6,430

     Furniture and equipment

1,228


883


3,509


2,434

     Marketing

780


1,099


2,786


3,300

     Legal and professional fees

2,213


2,189


7,226


5,442

     FDIC assessments

517


552


1,704


1,661

     Amortization of intangibles

728


397


1,767


1,027

     Asset dispositions expense

219


77


469


393

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

(96)


262


(348)


396

     Early redemption cost for Federal Home Loan Bank advances

0


0


1,777


0

     Other

3,672


3,269


10,308


9,112

         Total Noninterest Expenses

33,435


29,127


100,584


76,601









         Income Before Income Taxes

13,452


7,139


28,034


25,907

Income taxes

4,319


2,698


9,603


9,802









         Net Income

$

9,133


$

4,441


$

18,431


$

16,105









Per share of common stock:
















     Net income diluted

$

0.24


$

0.13


$

0.49


$

0.48

     Net income basic

0.24


0.13


0.50


0.48

     Cash dividends declared

0.00


0.00


0.00


0.00









Average diluted shares outstanding

38,169,863


34,193,540


37,258,133


33,524,718

Average basic shares outstanding

37,549,804


33,907,178


36,626,290


33,286,933


 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES



QUARTER


2016


2015

(Dollars in thousands)

Third


Second


First


Fourth


Third











Interest on securities:










     Taxable

$

6,966


$

6,603


$

5,683


$

5,312


$

5,154

     Nontaxable

287


299


164


144


144

Interest and fees on loans

31,932


29,244


26,034


25,184


25,276

Interest on federal funds sold and other investments

429


433


290


275


249

         Total Interest Income

39,614


36,579


32,171


30,915


30,823











Interest on deposits

679


688


604


598


562

Interest on time certificates

613


550


313


265


295

Interest on borrowed money

874


848


1,032


952


955

         Total Interest Expense

2,166


2,086


1,949


1,815


1,812











         Net Interest Income

37,448


34,493


30,222


29,100


29,011

Provision for loan losses

550


662


199


369


987

         Net Interest Income After Provision for Loan Losses

36,898


33,831


30,023


28,731


28,024











Noninterest income:










     Service charges on deposit accounts

2,698


2,230


2,129


2,229


2,217

     Trust fees

820


838


806


791


781

     Mortgage banking fees

1,885


1,364


999


955


1,177

     Brokerage commissions and fees

463


470


631


511


604

     Marine finance fees

138


279


141


205


258

     Interchange income

2,306


2,370


2,217


1,989


1,925

     Other deposit based EFT fees

109


116


127


99


88

     BOLI income

382


379


841


396


366

     Other

963


1,065


739


607


666


9,764


9,111


8,630


7,782


8,082

     Securities gains, net

225


47


89


1


160

     Bargain purchase gain, net

0


0


0


416


0

         Total Noninterest Income

9,989


9,158


8,719


8,199


8,242











Noninterest expenses:










     Salaries and wages

14,337


13,884


13,399


11,135


11,850

     Employee benefits

2,425


2,521


2,482


2,178


2,430

     Outsourced data processing costs

3,198


2,803


4,439


2,455


3,277

     Telephone / data lines

539


539


528


412


446

     Occupancy

3,675


3,645


2,972


2,314


2,396

     Furniture and equipment

1,228


1,283


998


1,000


883

     Marketing

780


957


1,049


1,128


1,099

     Legal and professional fees

2,213


2,656


2,357


2,580


2,189

     FDIC assessments

517


643


544


551


552

     Amortization of intangibles

728


593


446


397


397

     Asset dispositions expense

219


160


90


79


77

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

(96)


(201)


(51)


(157)


262

     Early redemption cost for Federal Home Loan Bank advances

0


1,777


0


0


0

     Other

3,672


3,548


3,088


3,097


3,269

         Total Noninterest Expenses

33,435


34,808


32,341


27,169


29,127











         Income Before Income Taxes

13,452


8,181


6,401


9,761


7,139

Income taxes

4,319


2,849


2,435


3,725


2,698











         Net Income

$

9,133


$

5,332


$

3,966


$

6,036


$

4,441











Per share of common stock:




















     Net income diluted

$

0.24


$

0.14


$

0.11


$

0.18


$

0.13

     Net income basic

0.24


0.14


0.11


0.18


0.13

     Cash dividends declared

0.00


0.00


0.00


0.00


0.00











Average diluted shares outstanding

38,169,863


38,141,550


35,452,968


34,395,373


34,193,540

Average basic shares outstanding

37,549,804


37,470,071


34,848,875


34,115,697


33,907,178











 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES



September 30,


December 31,


September 30,

(Dollars in thousands, except share data)

2016


2015


2015







Assets






   Cash and due from banks

$

89,777


$

81,216


$

69,650

   Interest bearing deposits with other banks

77,606


54,851


30,991

            Total  Cash and Cash Equivalents

167,383


136,067


100,641







   Securities:






        Available for sale (at fair value)

866,613


790,766


728,161

        Held for investment (at amortized cost)

392,138


203,525


209,047

            Total Securities

1,258,751


994,291


937,208







   Loans held for sale

20,143


23,998


16,738







   Loans

2,769,338


2,156,330


2,099,447

   Less: Allowance for loan losses

(22,684)


(19,128)


(19,328)

            Net Loans

2,746,654


2,137,202


2,080,119







   Bank premises and equipment, net

59,035


54,579


54,900

   Other real estate owned

12,734


7,039


7,433

   Goodwill

64,649


25,211


25,864

   Other intangible assets

15,291


8,594


8,991

   Bank owned life insurance

44,044


43,579


43,251

   Net deferred tax assets

58,848


60,274


61,046

   Other assets

66,402


43,946


41,917


$

4,513,934


$

3,534,780


$

3,378,108







Liabilities and Shareholders' Equity






Liabilities






   Deposits






        Noninterest demand

$

1,168,542


$

854,447


$

869,877

        Interest-bearing demand

776,480


734,749


618,344

        Savings

340,899


295,851


286,810

        Money market

858,931


665,353


660,632

        Other time certificates

166,987


153,318


163,028

        Brokered time certificates

8,218


9,403


8,323

        Time certificates of $100,000 or more

190,436


131,266


135,282

            Total Deposits

3,510,493


2,844,387


2,742,296







   Securities sold under agreements to repurchase

167,693


172,005


148,607

   Federal Home Loan Bank borrowings

305,000


50,000


50,000

   Subordinated debt

70,171


69,961


69,891

   Other liabilities

25,058


44,974


17,034


4,078,415


3,181,327


3,027,828







Shareholders' Equity






   Common stock

3,799


3,435


3,435

   Additional paid in capital

453,007


399,162


398,067

   Accumulated deficit

(24,427)


(42,858)


(48,894)

   Treasury stock

(691)


(73)


(38)


431,688


359,666


352,570

   Accumulated other comprehensive income (loss), net

3,831


(6,213)


(2,290)

            Total Shareholders' Equity

435,519


353,453


350,280


$

4,513,934


$

3,534,780


$

3,378,108







Common Shares Outstanding

38,025,020


34,351,409


34,346,456


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)

Third


Second


First


Fourth


Third


Net income

$

9,133


$

5,332


$

3,966


$

6,036


$

4,441












Operating Ratios











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

0.82

%

0.51

%

0.44

%

0.69

%

0.52

%

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

0.88


0.56


0.48


0.73


0.56


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

8.44


5.15


4.30


6.78


5.05


   Efficiency ratio (5)

68.60


78.01


81.73


72.57


76.29


   Noninterest income to total revenue

20.68


20.89


22.21


21.10


21.79













   Net interest margin (1),(2)

3.69


3.63


3.68


3.67


3.75


   Average equity to average assets

9.74


9.91


10.30


10.20


10.34













Credit Analysis











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

$

(1,328)


$

(315)


$

(539)


$

245


$

(233)

   Net charge-offs - acquired loans

(81)


(24)


142


324


683


   Total net charge-offs (recoveries)

$

(1,409)


$

(339)


$

(397)


$

569


$

450












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

(0.20)

%

(0.05)

%

(0.10)

%

0.05

%

(0.04)

%

   Net charge-offs to average loans - acquired loans

(0.01)


0.00


0.03


0.06


0.12


   Total net charge-offs (recoveries) to average loans

(0.21)


(0.05)


(0.07)


0.11


0.08













   Loan loss provision (recapture) - non-acquired loans

$

649


$

423


$

(20)


$

(40)


$

852

   Loan loss provision - acquired loans

(99)


239


219


409


135


   Total loan loss provision

$

550


$

662


$

199


$

369


$

987












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

1.00

%

1.01

%

1.04

%

1.03

%

1.11

%

   Discount for credit losses to acquired loans at end of period

4.24


3.96


3.79


4.24


4.13













   Nonperforming loans - non-acquired loans

$

10,561


$

10,919


$

11,881


$

12,758


$

14,474

   Nonperforming loans - acquired loans

7,876


4,360


3,707


4,628


2,636


   Other real estate owned - non-acquired

3,681


3,791


5,042


3,699


4,183


   Other real estate owned - acquired

1,468


1,644


2,415


3,340


3,250


   Other real estate owned – branches out of service

7,585


3,259


634


0


0


   Total nonperforming assets

$

31,171


$

23,973


$

23,679


$

24,425


$

24,543












  Restructured loans (accruing)

$

19,272


$

20,337


$

19,956


$

19,970


$

20,543












  Purchased noncredit impaired loans

$

484,006


$

554,519


$

558,262


$

320,349


$

355,739

  Purchased credit impaired loans

13,057


13,652


16,531


12,109


12,673


  Total acquired loans

$

497,063


$

568,171


$

574,793


$

332,458


$

368,412












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

0.38

%

0.42

%

0.48

%

0.59

%

0.69

%

   Nonperforming loans to loans at end of period - acquired loans

0.28


0.16


0.15


0.22


0.12


   Total nonperforming loans to loans at end of period

0.66


0.58


0.63


0.81


0.81













   Nonperforming assets to total assets - non-acquired

0.48

%

0.41

%

0.44

%

0.47

%

0.55

%

   Nonperforming assets to total assets - acquired

0.21


0.14


0.15


0.22


0.18


   Total nonperforming assets to total assets

0.69


0.55


0.59


0.69


0.73













Per Share Common Stock











   Net income diluted-GAAP basis

$

0.24


$

0.14


$

0.11


$

0.18


$

0.13

   Net income basic-GAAP basis

0.24


0.14


0.11


0.18


0.13













   Cash dividends declared

0.00


0.00


0.00


0.00


0.00


   Book value per share common

11.45


11.20


10.91


10.29


10.20













Average Balances











Total average assets

$

4,420,438


$

4,206,800


$

3,601,381


$

3,463,277


$

3,373,858

Less: Intangible assets

80,068


69,449


37,006


34,457


35,185


Total average tangible assets

$

4,340,370


$

4,137,351


$

3,564,375


$

3,428,820


$

3,338,673












Total average equity

$

430,410


$

416,748


$

370,816


$

353,392


$

348,901

Less: Intangible assets

80,068


69,449


37,006


34,457


35,185


Total average tangible equity

$

350,342


$

347,299


$

333,810


$

318,935


$

313,716


(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).





September 30,


December 31,


September 30,


SECURITIES

2016


2015


2015


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

$

12,818


$

3,911


$

3,929


Mortgage-backed

526,617


539,688


488,803


Collateralized loan obligations

124,424


122,583


123,447


Obligations of states and political subdivisions

64,434


39,891


33,037


Corporate and other debt securities

76,638


44,273


39,918


Private commercial mortgage backed securities

61,682


40,420


39,027


   Securities Available for Sale

866,613


790,766


728,161









Mortgage-backed

350,644


162,225


167,747


Collateralized loan obligations

41,494


41,300


41,300


   Securities Held for Investment

392,138


203,525


209,047


       Total Securities

$

1,258,751


$

994,291


$

937,208
























September 30,


December 31,


September 30,


LOANS

2016


2015


2015









Construction and land development

$

153,901


$

108,787


$

96,036


Real estate mortgage

2,126,923


1,733,163


1,714,120


Installment loans to individuals

145,523


85,356


78,472


Commercial and financial

342,502


228,517


210,335


Other loans

489


507


484


       Total Loans

$

2,769,338


$

2,156,330


$

2,099,447



 

 

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

(Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES



2016


2015


Third Quarter


Second Quarter


Third Quarter


Average




Yield/


Average




Yield/


Average




Yield/

(Dollars in thousands)

Balance


Interest


Rate


Balance


Interest


Rate


Balance


Interest


Rate

Assets


















Earning assets:


















    Securities:


















         Taxable

$

1,264,345


$

6,966


2.20%


$

1,185,022


$

6,603


2.23%


$

966,764


$

5,154


2.13%

         Nontaxable

28,344


441


6.22


28,445


459


6.45


14,982


220


5.87

                   Total Securities

1,292,689


7,407


2.29


1,213,468


7,062


2.33


981,746


5,374


2.19



















    Federal funds sold and other


















         investments

55,465


429


3.08


110,636


433


1.57


42,083


249


2.35



















    Loans,  net

2,720,121


32,065


4.69


2,532,533


29,392


4.67


2,060,326


25,319


4.88



















                  Total Earning Assets

4,068,275


39,901


3.90


3,856,637


36,887


3.85


3,084,155


30,942


3.98



















Allowance for loan losses

(21,934)






(20,185)






(19,294)





Cash and due from banks

84,592






92,159






70,292





Premises and equipment

62,552






63,149






54,436





Intangible assets

80,068






69,449






35,185





Bank owned life insurance

43,860






43,542






41,934





Other assets

103,025






102,049






107,150
























$

4,420,438






$

4,206,800






$

3,373,858























Liabilities and Shareholders' Equity


















Interest-bearing liabilities:


















      Interest-bearing demand

$

781,620


$

151


0.08%


$

755,206


$

161


0.09%


$

621,365


$

116


0.07%

      Savings

331,685


41


0.05


322,567


39


0.05


285,410


39


0.05

      Money market

864,228


487


0.22


810,709


488


0.24


637,840


407


0.25

      Time deposits

374,852


613


0.65


366,263


550


0.60


308,184


295


0.38

      Federal funds purchased and


















        securities sold under agreements to repurchase

184,170


118


0.25


195,802


129


0.26


163,385


100


0.24

      Federal Home Loan Bank borrowings

223,467


240


0.43


171,011


215


0.51


70,109


418


2.37

      Other borrowings

70,137


516


2.93


70,064


504


2.89


68,961


437


2.52



















                     Total Interest-Bearing Liabilities

2,830,159


2,166


0.30


2,691,622


2,086


0.31


2,155,254


1,812


0.33



















Noninterest demand

1,131,073






1,059,039






849,468





Other liabilities

28,796






39,391






20,235





                     Total Liabilities

3,990,028






3,790,052






3,024,957























Shareholders' equity

430,410






416,748






348,901
























$

4,420,438






$

4,206,800






$

3,373,858























Interest expense as a % of earning assets





0.21%






0.22%






0.23%

Net interest income as a % of earning assets



$

37,735


3.69%




$

34,801


3.63%




$

29,130


3.75%





































(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)

Third Quarter


Second Quarter


First Quarter


Fourth Quarter


Third Quarter











Customer Relationship Funding (Period End)










Noninterest demand










Commercial

$

892,876


$

860,953


$

768,890


$

592,621


$

619,960

Retail

209,351


211,722


212,367


198,077


182,381

Public funds

42,147


44,275


52,244


46,300


47,765

Other

24,168


29,842


20,568


17,449


19,771


1,168,542


1,146,792


1,054,069


854,447


869,877











Interest-bearing demand










Commercial

100,824


102,105


101,767


77,500


69,037

Retail

567,286


549,301


496,846


479,056


443,022

Public funds

108,370


124,982


152,291


178,193


106,285


776,480


776,388


750,904


734,749


618,344











Total transaction accounts










Commercial

993,700


963,058


870,657


670,121


688,997

Retail

776,637


761,023


709,213


677,133


625,403

Public funds

150,517


169,257


204,535


224,493


154,050

Other

24,168


29,842


20,568


17,449


19,771


1,945,022


1,923,180


1,804,973


1,589,196


1,488,221











Savings

340,899


330,928


313,179


295,851


286,810











Money market










Commercial

313,200


293,724


271,567


208,520


225,629

Retail

411,550


419,821


380,233


312,756


306,138

Public funds

134,181


147,385