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Press Release

Seacoast Achieves Ambitious 2016 Earnings Goal And Establishes Guidance for 2017

Fourth Quarter EPS Increased 56% Year-over-Year; Second Consecutive Quarter of Record Loan Production; Strong Expense Management and Ongoing Transformation Continue to Benefit Shareholders

Company Release - 2/1/2017 4:02 PM ET

STUART, Fla., Feb. 1, 2017 /PRNewswire/ -- Seacoast Banking Corporation of Florida ("Seacoast" or "the Company") (NASDAQ: SBCF) today reported results for the fourth quarter and full year 2016. 

Full-year 2016 net income improved $7.1 million to $29.2 million, up 32%; and fully diluted earnings per share increased 18% to $0.78 compared with $0.66 per diluted common share in 2015.  Adjusted net income1 increased to $37.5 million in 2016 from $25.3 million in 2015, up 48%; and adjusted diluted earnings per share1 rose 33% to $1.00 for the year, meeting Seacoast's 2016 earnings target. 

Fourth quarter 2016 net income totaled $10.8 million, an increase of $4.7 million, or 78%, from the same period of the prior year; and rose $1.6 million or 18% compared with third quarter 2016 levels.  Adjusted net income1 increased $4.8 million, or 73%, from year-ago levels and $0.7 million or 7%, above the third quarter.  Diluted earnings per common share (EPS) were $0.28 and adjusted diluted EPS1 were $0.30 in the fourth quarter, compared to diluted EPS of $0.18 and adjusted diluted EPS1 of $0.19 in the fourth quarter last year.

Seacoast announced 2017 earnings guidance with expected full year adjusted EPS of $1.24 to $1.28 per share. 

Growth and Transformation Highlights Reflect Significant Franchise Gains

  • Loans grew $723 million, or 34%, from year-ago levels.  Adjusting for acquisitions, loan growth was $383 million, or 18%.  Loans increased $110 million sequentially, recording a 16% annualized growth rate.
  • Seacoast maintained its balanced growth focus and conservative risk posture ending the year with commercial real estate loan concentration levels well below regulatory guidance.
  • Seacoast's customer-analytics-driven transformation continues with debit card spend up 17% year-over-year, a new high, consumer loans sold to existing customers up 62% and 37% of deposits made outside the branch.

Financial Highlights Reflect Significant Efficiency Gains

  • Full year total revenues increased $35.3 million, or 25%, year-over-year to $177.4 million, reflecting significant franchise growth.  Fourth quarter revenues increased $10.1 million, or 27%, from fourth quarter 2015 levels.
  • Fourth quarter efficiency ratio improved to 62.4%, down from 72.6% in the fourth quarter 2015. Adjusted efficiency ratio1 was 60.8% an 830 basis points improvement from fourth quarter 2015.
  • Fourth quarter return on average assets (ROA) and return on average equity (ROE) improved to 0.94% and 9.80%, up from 0.69% and 6.78%, respectively, in the fourth quarter 2015. Adjusted ROA1 was 0.99%, a 24 basis points improvement over fourth quarter 2015. Adjusted return on tangible common equity1 (ROTCE) gained 420 basis points, reaching 13.1% during the fourth quarter.

Dennis S. Hudson, III, Chairman and CEO said, "We are pleased that we achieved our $1.00 adjusted EPS goal for 2016. Seacoast's execution of our balanced growth strategy and continuing transformation drove exceptional franchise growth and performance improvement, allowing us to overcome unanticipated headwinds from a declining rate environment over much of 2016. 

"Continued analytics-driven marketing and improved sales execution, combined with the favorable Florida economy, drove record loan production.  This produced 16% annualized growth in total loans as compared with the third quarter of this year. We continue to honor our lending guardrails, resulting in a balanced approach and a well-diversified loan portfolio. Our portfolio remains extremely granular, with low commercial real estate concentration of approximately 214% of total capital.

"The fourth quarter also reflects the first full quarter of benefit from our 2016 acquisitions.  Organic growth, targeted expense reduction strategies, and successful merger implementations drove significant continued operating leverage.  Year-over-year revenues grew 27%, outpacing a twelve percent increase in noninterest expense over the corresponding period.  Adjusted revenues,1 excluding securities gains and a bargain purchase gain taken in Q4 2015, grew 28%, outpacing a 14% increase in adjusted expenses1 over this same period.

"On an annual basis, we've now moved nearly 1 million basic check deposits out of our branch network and in to lower cost channels like ATMs and mobile.  When looking at all routine transactions in total, our customers are increasingly choosing more convenient channels to manage routine transactions.  At this point, we expect we'll process more routine transactions through lower cost channels than in our branch network by July of this year.

"One year ago, we announced our $1.00 adjusted EPS goal for 2016.  This was an aggressive target, a 33% increase from the prior year. We achieved that goal, and exited 2016 with improved results in all key performance measures and strong momentum in each of our business units.  Adjusted ROA1 improved 24 basis points to 0.99% and adjusted ROTCE1 increased 420 basis points to 13.1% during last year.

"We begin 2017 with much improved performance and on a trajectory to outperform our peers. We will provide a broader discussion of our strategy to deliver long-term value for our shareholders and our three-year expectations at our upcoming investor day on February 22, 2017," Hudson concluded.

 

 

FINANCIAL HIGHLIGHTS

4Q16

3Q16

2Q16

1Q16

4Q15

(Dollars in thousands except per share data)













Total Assets


$4,680,932

$4,513,934

$4,381,204

$4,001,323

$3,534,780









Loans



2,879,536

2,769,338

2,616,052

2,455,214

2,156,330









Deposits



3,523,245

3,510,493

3,501,316

3,222,447

2,844,387









Net Income


10,771

9,133

5,332

3,966

6,036









Diluted Earnings Per Share   

0.28

0.24

0.14

0.11

0.18









Return on Average Assets
   (ROA)

0.94%

0.82%

0.51%

0.44%

0.69%

Return on Average Tangible   

 

12.5

10.9

6.6

5.1

7.8

     Common Equity(ROTCE)1














Net Interest Margin


3.56

3.69

3.63

3.68

3.67

Efficiency Ratio


62.4

68.6

78.0

81.7

72.6









Pretax, Pre-provision Income 1

$17,058

$14,002

$8,842

$6,600

$10,130









Average Diluted Shares






     Outstanding (000)


38,252

38,170

38,142

35,453

34,395

Adjusted Net Income 1

$11,337

$10,588

$8,773

$6,758

$6,569

Adjusted Diluted Earnings  

0.30

0.28

0.23

0.19

0.19

     Per Share 1















Adjusted ROA 1


0.99%

0.95%

0.84%

0.75%

0.75%

Adjusted ROTCE 1


13.1

12.6

10.6

8.5

8.9









Adjusted Efficiency Ratio 1

60.8

63.1

64.8

69.6

69.1

Adjusted Pretax, Pre-provision       

$17,775

$16,370

$14,607

$11,082

$10,990

     Income 1















Annualized Adjusted


2.57%

2.78%

2.77%

3.05%

2.97%

     Noninterest Expenses as  






     a Percentage of Average






     Assets 1







 

Acquisitions Update
During the fourth quarter, we announced our acquisition of GulfShore Bancshares, Inc. ("GulfShore") which accelerated our entry into the fast-growing, business-rich Tampa market, Florida's second largest. We look forward to welcoming GulfShore's customers to Seacoast following the integration, which is expected to be completed in the second quarter of 2017. 

"In Tampa, we intend to follow our Orlando playbook, which has made us a Top Ten bank in only 20 months. In the first half of 2016, we acquired Floridian Financial Corporation and BMO Harris' Orlando banking operations, making us the largest Florida-based bank in Orlando. Orlando now represents 37% of our franchise, measured by deposits, up from virtually no presence three years ago," Hudson said. 

Florida Economic Update
"Economic indicators continue to show strength for Florida's economy and housing market," Hudson commented.  "A December 2016 report released by Wells Fargo Securities Economics Group commented, 'The recently updated state GDP data and the Quarterly Census of Employment and Wages (QCEW) provide additional insight into Florida's recent strong economic performance.  Florida's economy grew 2.9 percent year to year in Q2, far exceeding the nation's 1.2 percent growth."  Hudson continued, "Their November report forecasted, 'We look for Florida's strong run of economic growth to carry over into 2017, albeit at a slightly more modest pace.  Real GDP should grow 3.3 percent next year and nonfarm payrolls should add around 235,000 new jobs.  Homebuilding should continue to gain momentum, as stronger jobs and income growth boosts household formation and encourages more job seekers to move to Florida.2

"Florida's residential real estate market remains solid.  November statistics released by Florida REALTORS continue to show a year-over-year increase in closed sales and median sales price, with time to contract continuing a shortening trend.  With this improvement, however, home prices still remain well below pre-recession levels." Hudson concluded.3

Management Update
"On January 26th, we announced that Charles M. (Chuck) Shaffer, who is currently executive vice president and head of community banking, was appointed chief financial officer and head of strategy, effective March 15th. This appointment reflects our commitment to identify and groom talent that will support the execution of our long-term growth strategy. Having spent nearly 20 years with Seacoast, across a variety of operational and financial roles, Chuck has the perfect complement of skills to lead Seacoast's financial and strategic initiatives. I would also like to thank Steve Fowle for his invaluable contribution to Seacoast's transformation over the past two years and wish him well in his next endeavor.

"I am also pleased to announce that we have appointed Julie Kleffel, currently executive vice president and head of small-business banking, to succeed Chuck as head of community banking, which includes our small-business unit. Julie has been a major asset in the growth of our small-business operations and possesses the leadership qualities that will enable her to continue to succeed in this new role," Hudson stated.

Conference Call and Investor Day Information
Seacoast will host a conference call on Thursday, February 2, 2017 at 10:00 a.m. (Eastern Time) to discuss the earnings results.  Investors may call in (toll-free) by dialing (800)-774-6070 (passcode: 9408 151). 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 February 2, by dialing (888) 843-7419 and using passcode:  9408 151.

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 February 2, 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.   

In addition, Seacoast will host an investor day in New York on Wednesday, February 22 from 8:00 a.m. to 12:00 p.m. Eastern Standard Time. Investors wishing to attend may contact Debra Policino via email at Debra.Policino@seacoastbank.com. The investor day will also be webcast and details will be provided closer to the date.

Fourth 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 $8.3 million, or 29%, increase from fourth quarter 2015 levels.  Net interest margin was 3.56%, down 11 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 was level compared to the third quarter of 2016 and net interest margin decreased 13 basis points from 3.69% in the prior quarter.  While quarter over quarter the Company recorded strong loan growth, the decrease reflects lower purchased loan accretion (approximately 6 basis points) combined with  the impact of wholesale leverage (approximately 5 basis points) which improved net interest income and reduced margin.

Noninterest Income Growth Benefits from Acquisitions, Loan Growth
Noninterest income totaled $9.9 million for the fourth quarter of 2016, $1.7 million, or 21%, above the $8.2 million recorded in the same quarter of 2015.  Excluding securities gains and a bargain purchase gain taken in the fourth quarter 2015, noninterest income totaled $9.9 million, $2.1 million, or 27%, above last year.  Significant contributors to the increase in noninterest income include mortgage banking revenue, which increased $0.7 million, or 69%, from the year-ago period; deposit service charges, which increased $0.4 million, or 17%; interchange income, which increased $0.3 million, or 17%; other income, which increased $0.5 million, or 75%, and bank owned life insurance ("BOLI")  income which increased $0.2 million, or 54%, due to additional purchases during the quarter.

Noninterest income excluding securities gains increased $0.2 million from third quarter 2016 levels.  Declines of $0.3 million in mortgage banking fees during the quarter were more than offset by increases in wealth management fees, up $0.2 million, or 13%, as a result of customer growth, additional BOLI income, up $0.2 million, or 60%, and growth-driven increases in transaction based services (service charges on deposits, interchange income, other deposit fees and other fees).  Transaction-based revenue increased, in aggregate, despite the disruption of Hurricane Matthew in October.

Noninterest Expense Growth Reflects Merger Activity
Noninterest expense increased $3.1 million from the fourth quarter of 2015, including $1.6 million higher compensation-related costs.  Fourth quarter 2016 expenses were impacted by $0.7 million in acquisition and other nonrecurring expenses compared to $1.3 million in the fourth quarter of 2015.  Adjusted noninterest expense1 increased $3.7 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, including salaries and benefits, occupancy and equipment, and data processing costs associated with the acquisitions, and costs to support significant organic growth and investment in the franchise.  Revenues, excluding securities gains and the bargain purchase gain recognized in fourth quarter 2015, grew $10.3 million, or 28%, compared to prior year levels while adjusted noninterest expense1 grew 14% primarily related to salaries, data processing, and occupancy expenses, which increased $1.7 million, $0.8 million, and $0.5 million, respectively. 

Noninterest expense decreased $3.1 million from the third quarter 2016, partially due to a higher level of merger expenses and other nonrecurring expenses recorded in the third quarter.    Of the salary decrease of $1.7 million, $0.9 million related to accrual reversals for cash and stock compensation incentives that we anticipate will start accruing again during first quarter 2017.  Adjusted noninterest expense1 declined $1.3 million, or 4%. Contributing to the lower adjusted noninterest expense1 during the fourth quarter of 2016 were $1.2 million of  reductions for salary costs, occupancy, and data processing expense. 

Fourth Quarter 2016 Balance Sheet Highlights

Strong Originations Drive Loan Portfolio Even Higher
Net loans totaled $2.88 billion, an increase of $723 million, or 34%, above the fourth quarter 2015.  Excluding acquisitions, loans increased $383 million, or 18%, above the prior year.  Loans increased $110 million or 16%, annualized, from third quarter 2016.      

Loan production continued at a record pace for a second consecutive quarter.  Commercial loan originations reached $145 million, a record quarter and well ahead of $80 million of production in the fourth quarter of 2015.  The commercial pipeline (in underwriting and approval or approved and not yet closed) totaled $89 million at December 31, 2016. 

Consumer loan and small business originations totaled $83 million during the fourth quarter of 2016 compared to $60 million one year ago. Closed residential production for the quarter totaled $119 million compared with $60 million during the fourth quarter 2015, with a total residential pipeline of $73 million as of December 31, 2016, up from a pipeline of $30 million one year ago.  

 

(Dollars in thousands)

4Q16

3Q16

2Q16

1Q16

4Q15







Commercial pipeline

$88,814

$119,394

$113,261

$97,953

$105,556

Commercial loans closed

144,975

109,078

111,133

67,252

80,003







Residential pipeline

$72,604

$79,379

$66,083

$57,739

$30,340

Residential loans retained

74,745

68,748

64,003

36,335

24,905

Residential loans sold

81,141

79,151

39,499

30,345

35,278

 

Credit Quality Remains Stable and Strong
The provision for loan losses was $1.0 million for the fourth quarter of 2016, up from $369,000 in the fourth quarter 2015 and $550,000 recorded in the third quarter 2016.  The higher provision was the result of  strong loan growth along with net charge-offs of $283,000 during the quarter, compared to $1.4 million in net recoveries collected during the third quarter 2016 and $569,000 in net charge-offs in the fourth quarter 2015. The ratio of allowance for loan losses to non-acquired loans was 0.96% as of December 31 2016, a slight decrease from 1.00% as of September 30, 2016. 

Additional highlights include:

  • Nonperforming assets to total assets declined to 0.60%, compared to 0.69% one year ago. Of $28.0 million in nonperforming assets, nine properties at a carrying value of $5.7 million relate to closed branch properties held as REO.
  • The ratio of allowance for loan losses to nonperforming loans stood at 106.8%, more than covering nonperforming loans.

Deposits Built on Core Customer Growth and Acquired Deposits
Total deposits were $3.52 billion as of December 31, 2016, $679 million or 24% above the fourth quarter 2015.  Core customer funding increased to $3.38 billion, a $653 million or 24% increase.  Excluding acquisitions, core customer funding increased by $143 million or 5% and total deposits increased $13 million or 2% above the fourth quarter 2015.  Core customer funding increased $63 million and total deposits grew $13 million compared to the third quarter 2016.  Seacoast realized growth in deposits despite planned decreases in high-cost acquired certificates of deposit and significant branch consolidation.  Total deposits per branch location increased to $75 million as of December 31, 2016, compared to $66 million one year prior.

Aggregate noninterest demand and low cost interest-bearing demand deposits increased $77 million or 4% (not annualized) from the third quarter of 2016 and $433 million or 27% from the fourth quarter of 2015.  Excluding acquired deposits, noninterest demand deposits increased $110 million over the fourth quarter 2015.  No cost demand and interest bearing demand accounts were 57% of deposit balances. 

 

(Dollars in thousands)


Fourth

Quarter

2016

Third

Quarter

2016

Second

Quarter

2016


First

Quarter

2016

Fourth

Quarter

2015



Customer Relationship Funding










      Noninterest demand 


$1,148,309

$1,168,542

$1,146,792


$1,054,069

$  854,447



      Interest-bearing demand


873,727

776,480

776,388


750,904

734,749



      Money market


802,697

858,931

860,930


741,657

665,353



      Savings


346,662

340,899

330,928


313,179

295,851



      Time certificates of deposit


351,850

365,641

386,278


362,638

293,987



            Total deposits


$3,523,245

$3,510,493

$3,501,316


$3,222,447

$2,844,387



      Customer sweep accounts


$204,202

$167,693

$183,387


$198,330

$172,005



      Total core customer funding


$3,375,597

$3,312,545

$3,298,425


$3,058,139

$2,722,405



  Demand deposit mix 
     
(noninterest bearing)


32.6%

33.3%

32.8%


32.7%

30.0%



 

Other Highlights

Income Taxes
Seacoast recorded a $5.3 million income tax provision in the fourth quarter of 2016, compared to $4.3 million in the third quarter of 2016 and $3.7 million in the prior year.  The fourth and third quarter 2016 tax provisions benefited from the early adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting.  As a result, Seacoast recorded a benefit of $383,000 and $418,000 for the fourth and third quarter, respectively, adding approximately $0.01 per diluted share to each quarter.

Excluding the adoption of ASU 2016-09, the total year effective tax rate was 35.6%, down from 37.9% in 2015, reflecting active management of the company's tax position.  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 10.8%, total capital ratio was 13.3% and the tier 1 leverage ratio was 9.2% at December 31, 2016, essentially flat with the prior quarter as strong earnings grew capital in line with balance sheet growth.

Tangible book value per share increased $0.02 to $9.37 while book value per share remained flat at $11.45 compared to the third quarter of 2016.  Tangible common equity to assets was 7.7% at December 31, 2016.  Tangible book value and tangible common equity ratios were impacted by earnings strength, offset by a decrease in unrealized gains (losses) on AFS securities.

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 $4.7 billion in assets and $3.5 billion in deposits as of December 31, 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.

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/fl-economic-outlook-20161101.pdf
3 http://blog.comerica.com/2016/11/15/florida-economy-gains-momentum-heading-into-2017/

Important information About the Proposed Merger and Where to Find It

This document does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Seacoast has filed a registration statement on Form S-4 with the SEC, which includes a preliminary proxy statement of GulfShore and a preliminary prospectus of Seacoast regarding the proposed merger with GulfShore into Seacoast.  After the registration statement is declared effective by the SEC, GulfShore will deliver a definitive proxy statement to its shareholders.  INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED MERGER AND OTHER DOCUMENTS FILED BY SEACOAST WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS WHEN THEY BECOME AVAILABLE, BECAUSE THEY DO OR WILL CONTAIN IMPORTANT INFORMATION.

Investors can obtain (when available) a free copy of the proxy statement/prospectus, as well as other filings containing information about Seacoast and GulfShore, at the SEC's website (http://www.sec.gov), with respect to information about Seacoast, and GulfShore's website (www.gulfshorebank.com), with respect to information about GulfShore.  Investors can also obtain these documents, free of charge, at http://www.seacoastbanking.com under the tab "Investor Relations" and then under the tab "Financials/Regulatory Filings."  Copies of the proxy statement/prospectus and any other filing by Seacoast with the SEC can also be obtained, free of charge, by directing a request to Investor Relations, 815 Colorado Avenue, P.O. Box 9012, Stuart, FL 34994, (772) 288-6085.

Seacoast, GulfShore, their respective directors and executive officers and other members of management and employees may be considered participants in the solicitation of proxies in connection with the proposed merger. Information about the directors and executive officers of Seacoast is set forth in its proxy statement for its 2016 annual meeting of shareholders, which was filed with the SEC on April 7, 2016, and amendments thereto, and its Current Reports on Form 8-K. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the Proxy Statement/Prospectus.  You may obtain free copies of these documents as described in the preceding paragraph.

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 the 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:

 

 

 

(Dollars in thousands except per share data)

Fourth

Quarter

Third

Quarter

Second
Quarter

First
Quarter

Fourth
Quarter


2016

2016

2016

2016

2015

Net income

$10,771

$9,133

$5,332

$3,966

$6,036







BOLI income (benefits upon a death)

0

0

0

(464)

0

Security gains

(7)

(225)

(47)

(89)

(1)

Bargain purchase gain

0

0

0

0

(416)

     Total Adjustments to Revenue

(7)

(225)

(47)

(553)

(417)







Severance

165

287

464

306

187

Merger related charges

559

1,628

2,448

4,038

1,043

Branch closure charges and costs related    to expense initiative

0

678

1,121

691

0

Miscellaneous losses

0

0

0

0

48

Early redemption cost for FHLB advances

0

0

1,777

0

0

     Total Adjustments to Noninterest Expense

724

2,593

5,810

5,035

1,278







Effective tax rate on adjustments

(152)

(913)

(2,322)

(1,690)

(328)

Adjusted Net Income 

$11,337

$10,588

$8,773

$6,758

$6,569

Earnings per diluted share, as reported

$0.28

$0.24

$0.14

$0.11

$0.18

Adjusted Earnings per Diluted Share

0.30

0.28

0.23

0.19

0.19

Average shares outstanding (000)

38,252

38,170

38,142

35,453

34,395







Adjusted net income

$11,337

$10,588

$8,773

$6,758

$6,569

Provision for loan losses

1,000

550

662

199

369

Income taxes

5,438

5,232

5,172

4,125

4,052

Adjusted Pretax, Pre-provision Income

$17,775

$16,370

$14,607

$11,082

$10,990

Revenue

$47,354

$47,437

$43,651

$38,941

$37,299

Total adjustments to revenue

(7)

(225)

(47)

(553)

(417)

     Adjusted Revenue

$47,347

$47,212

$43,604

$38,388

$36,882

Noninterest Expense

$30,297

$33,435

$34,808

$32,341

$27,169

Total adjustments to noninterest expense

724

2,593

5,810

5,035

1,278

     Adjusted Noninterest Expense

$29,573

$30,842

$28,998

$27,306

$25,891


Adjusted noninterest expense

$29,573

$30,842

$28,998

$27,306

$25,891


Foreclosed property expense & amortization of    intangibles

(641)

(851)

(553)

(484)

(324)


Net adjusted noninterest expense

$28,932

$29,990

$28,445

$26,822

$25,567


Adjusted revenue

$47,347

$47,212

$43,604

$38,388

$36,882


Impact of FTE adjustment

204

287

308

127

117


Adjusted revenue on a fully taxable equivalent basis

$47,551

$47,499

$43,912

$38,515

$36,999


Adjusted Efficiency Ratio

60.84%

63.14%

64.78%

69.64%

69.10%


Return on average assets (ROA)

0.94%

0.82%

0.51%

0.44%

0.69%


Impact of adjustments for adjusted net income

0.05

0.13

0.33

0.31

0.06


Adjusted  Return on Average Assets

(Adjusted ROA)

0.99%

0.95%

0.84%

0.75%

0.75%









Return on Average Common Equity

9.8%

8.4%

5.2%

4.3%

6.8%


Impact of removing average intangible assets and related amortization

2.7

2.5

1.4

0.8

1.0


Return on Average Tangible Common Equity  (ROTCE)

12.5

10.9

6.6

5.1

7.8


Impact of adjustments for adjusted net income

0.6

1.7

4.0

3.4

1.1


 Adjusted Return on Average Tangible Common Equity

13.1%

12.6%

10.6%

8.5%

8.9%


 

 

NONINTEREST EXPENSE








Fourth

Third

Second

First

Fourth



Quarter

Quarter

Quarter

Quarter

Quarter


(Dollars in thousands)

2016

2016

2016

2016

2015


Salaries and wages

$12,324

$13,431

$12,769

$12,137

$10,948


Employee benefits

2,475

2,397

2,476

2,389

2,178


Outsourced data processing costs

3,030

3,223

2,698

2,488

2,457


Telephone / data lines

502

539

539

529

412


Occupancy expense

2,783

2,806

2,523

2,251

2,314


Furniture and equipment expense

1,177

1,073

1,122

966

952


Marketing expense

816

768

836

997

1,128


Legal and professional fees

1,922

1,696

1,574

1,583

1,568


FDIC assessments

661

517

643

544

551


Asset Management Disposition

84

219

160

90

84


OREO & REPO Loss/(Gain)

(161)

(96)

(201)

(51)

(157)


Amortization of intangibles

719

727

594

446

397


Other

3,241

3,542

3,265

2,937

3,059


Total Adjusted Noninterest Expense

29,573

30,842

28,998

27,306

25,891


Severance and organizational changes

165

287

464

306

187


Legal and professional fees for acquisition and expense initiatives

559

1,628

2,448

4,038

1,043


Branch closure

0

678

1,121

691

0


Miscellaneous losses

0

0

0

0

48


Early redemption cost for FHLB advances

0

0

1,777

0

0


Total Noninterest Expense

$30,297

$33,435

$34,808

$32,341

$27,169









 

 

FINANCIAL  HIGHLIGHTS 



(Unaudited)








SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES






















(Dollars in thousands, except share data)

Three Months Ended


Twelve Months Ended



December 31,


September 30,


December 31,


December 31,


December 31,



2016


2016


2015


2016


2015


Summary of Earnings











Net income

$          10,771


$         9,133


$           6,036


$           29,202


$        22,141


Net interest income  (1)

37,628


37,735


29,216


140,514


109,968


Net interest margin  (1), (2)

3.56

%

3.69

%

3.67

%

3.63

%

3.64

%












Performance Ratios











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

0.94

%

0.82

%

0.69

%

0.69

%

0.67

%

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

9.80


8.44


6.78


7.06


6.56


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

12.51


10.91


7.83


8.87


7.59


Efficiency ratio (5)

62.36


68.60


72.57


72.13


71.58


Noninterest income to total revenue

20.96


20.68


21.10


21.14


22.63













Per Share Data











Net income diluted-GAAP basis

$              0.28


$            0.24


$              0.18


$               0.78


$             0.66


Net income basic-GAAP basis

0.29


0.24


0.18


0.79


0.66


Book value per share common

11.45


11.45


10.29


11.45


10.29


Tangible book value per share

9.37


9.35


9.31


9.37


9.31


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






























December 31,


September 30,


December 31,






(Dollars in thousands, except share data)

2016


2016


2015

















Selected Financial Data











Total assets 

$    4,680,932


$  4,513,934


$    3,534,780






Securities available for sale (at fair value)

950,503


866,613


790,766






Securities held for investment (at amortized cost)

372,498


392,138


203,525






Net loans

2,856,136


2,746,654


2,137,202






Deposits 

3,523,245


3,510,493


2,844,387






Total shareholders' equity  

435,397


435,519


353,453

















Average Balances (Year-to-Date)











Total average assets

$    4,201,822


$  4,077,463


$    3,304,397






Less: intangible assets

66,611


62,240


33,277






Total average tangible assets

$    4,135,211


$  4,015,223


$    3,271,120

















Total average equity

$       413,874


$     406,080


$       337,367






Less: intangible assets

66,611


62,240


33,277






Total average tangible equity

$       347,264


$     343,840


$       304,090

















Credit Analysis











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

$          (2,040)


$        (2,182)


$             (609)






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

178


37


1,196






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

$          (1,862)


$        (2,145)


$               587

















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

(0.08)

%

(0.12)

%

(0.03)

%





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

0.01


0.01


0.06






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

(0.07)


(0.11)


0.03

















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

$            2,213


$         1,052


$           1,375






Loan loss provision year-to-date - acquired loans

198


359


1,269






Total loan loss provision year-to-date

$            2,411


$         1,411


$           2,644

















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

0.96

%

1.00

%

1.03

%





Discount for credit losses to acquired loans at end of period

4.18


4.24


4.24

















Nonperforming loans - non-acquired loans

$          11,023


$       10,561


$         12,758






Nonperforming loans - acquired loans

7,048


7,876


4,628






Other real estate owned - non-acquired 

3,041


3,681


3,699






Other real estate owned - acquired 

1,203


1,468


3,340






Bank branches closed inculded in other real estate owned

5,705


7,585


0






Total nonperforming assets 

$          28,020


$       31,171


$         24,425

















Restructured loans (accruing)

$          17,711


$       19,272


$         19,970

















Purchased noncredit impaired loans

$       440,690


$     484,006


$       308,737






Purchased credit impaired loans

12,996


13,057


12,109






Total acquired loans

$       453,686


$     497,063


$       320,846

















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

0.38

%

0.38

%

0.59

%





Nonperforming loans to loans at end of period - acquired loans

0.24


0.28


0.22






Total nonperforming loans to loans at end of period

0.63


0.66


0.81

















Nonperforming assets to total assets - non-acquired 

0.42

%

0.48

%

0.47

%





Nonperforming assets to total assets - aquired 

0.18


0.21


0.22






Total nonperforming assets to total assets

0.60


0.69


0.69




























 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME


(Unaudited)







SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


















Three Months Ended


Twelve Months Ended



December 31,


December 31,

(Dollars in thousands, except per share data)


2016


2015


2016


2015










Interest on securities:









     Taxable


$           6,880


$        5,312


$      26,133


$          20,341

     Nontaxable


287


144


1,036


585

Interest and fees on loans


32,007


25,184


119,217


94,469

Interest on federal funds sold and other investments


517


275


1,669


1,022

         Total Interest Income


39,691


30,915


148,055


116,417










Interest on deposits


622


598


2,593


2,085

Interest on time certificates


598


265


2,074


1,228

Interest on borrowed money


1,046


952


3,800


3,617

         Total Interest Expense


2,266


1,815


8,467


6,930










         Net Interest Income


37,425


29,100


139,588


109,487

Provision for loan losses


1,000


369


2,411


2,644

         Net Interest Income After Provision for Loan Losses


36,425


28,731


137,177


106,843










Noninterest income:









     Service charges on deposit accounts


2,612


2,229


9,669


8,563

     Trust fees


969


791


3,433


3,132

     Mortgage banking fees


1,616


955


5,864


4,252

     Brokerage commissions and fees


480


511


2,044


2,132

     Marine finance fees


115


205


673


1,152

     Interchange income


2,334


1,989


9,227


7,684

     Other deposit based EFT fees


125


99


477


397

     BOLI income


611


396


2,213


1,426

     Gain on participated loan


0


0


0


725

     Other


1,060


607


3,827


2,555



9,922


7,782


37,427


32,018

     Securities gains, net


7


1


368


161

     Bargain purchase gain, net


0


416


0


416

         Total Noninterest Income


9,929


8,199


37,795


32,595










Noninterest expenses:









     Salaries and wages


12,476


11,135


54,096


41,075

     Employee benefits


2,475


2,178


9,903


9,564

     Outsourced data processing costs


3,076


2,455


13,516


10,150

     Telephone / data lines


502


412


2,108


1,797

     Occupancy 


2,830


2,314


13,122


8,744

     Furniture and equipment 


1,211


1,000


4,720


3,434

     Marketing 


847


1,128


3,633


4,428

     Legal and professional fees


2,370


2,580


9,596


8,022

     FDIC assessments


661


551


2,365


2,212

     Amortization of intangibles


719


397


2,486


1,424

     Asset dispositions expense


84


79


553


472

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


(161)


(157)


(509)


239

     Early redemption cost for Federal Home Loan Bank advances


0


0


1,777


0

     Other 


3,207


3,097


13,515


12,209

         Total Noninterest Expenses


30,297


27,169


130,881


103,770










         Income Before Income Taxes


16,058


9,761


44,091


35,668

Income taxes


5,286


3,725


14,889


13,527










         Net Income 


$        10,771


$        6,036


$      29,202


$          22,141










Per share of common stock:


















     Net income diluted


$             0.28


$          0.18


$           0.78


$              0.66

     Net income basic


0.29


0.18


0.79


0.66

     Cash dividends declared


0.00


0.00


0.00


0.00










Average diluted shares outstanding


38,252,351


34,395,373


37,508,046


33,744,171

Average basic shares outstanding


37,603,789


34,115,697


36,872,007


33,495,827



















 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)









SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES




















QUARTER


2016


2015

(Dollars in thousands, except per share data)

Fourth


Third


Second


First


Fourth











Interest on securities:










     Taxable

$           6,880


$        6,966


$        6,603


$        5,683


$        5,312

     Nontaxable

287


287


299


164


144

Interest and fees on loans

32,007


31,932


29,244


26,034


25,184

Interest on federal funds sold and other investments

517


429


433


290


275

         Total Interest Income

39,691


39,614


36,579


32,171


30,915











Interest on deposits

622


679


688


604


598

Interest on time certificates

598


613


550


313


265

Interest on borrowed money

1,046


874


848


1,032


952

         Total Interest Expense

2,266


2,166


2,086


1,949


1,815











         Net Interest Income

37,425


37,448


34,493


30,222


29,100

Provision for loan losses

1,000


550


662


199


369

         Net Interest Income After Provision for Loan Losses

36,425


36,898


33,831


30,023


28,731











Noninterest income:










     Service charges on deposit accounts

2,612


2,698


2,230


2,129


2,229

     Trust fees

969


820


838


806


791

     Mortgage banking fees

1,616


1,885


1,364


999


955

     Brokerage commissions and fees

480


463


470


631


511

     Marine finance fees

115


138


279


141


205

     Interchange income

2,334


2,306


2,370


2,217


1,989

     Other deposit based EFT fees

125


109


116


127


99

     BOLI income

611


382


379


841


396

     Other

1,060


963


1,065


739


607


9,922


9,764


9,111


8,630


7,782

     Securities gains, net

7


225


47


89


1

     Bargain purchase gain, net

0


0


0


0


416

         Total Noninterest Income

9,929


9,989


9,158


8,719


8,199











Noninterest expenses:










     Salaries and wages

12,476


14,337


13,884


13,399


11,135

     Employee benefits

2,475


2,425


2,521


2,482


2,178

     Outsourced data processing costs

3,076


3,198


2,803


4,439


2,455

     Telephone / data lines

502


539


539


528


412

     Occupancy 

2,830


3,675


3,645


2,972


2,314

     Furniture and equipment 

1,211


1,228


1,283


998


1,000

     Marketing 

847


780


957


1,049


1,128

     Legal and professional fees

2,370


2,213


2,656


2,357


2,580

     FDIC assessments

661


517


643


544


551

     Amortization of intangibles

719


728


593


446


397

     Asset dispositions expense

84


219


160


90


79

     Net gain on other real estate owned and repossessed assets

(161)


(96)


(201)


(51)


(157)

     Early redemption cost for Federal Home Loan Bank advances

0


0


1,777


0


0

     Other 

3,207


3,672


3,548


3,088


3,097

         Total Noninterest Expenses

30,297


33,435


34,808


32,341


27,169











         Income Before Income Taxes

16,057


13,452


8,181


6,401


9,761

Income taxes

5,286


4,319


2,849


2,435


3,725











         Net Income

$        10,771


$        9,133


$        5,332


$        3,966


$        6,036











Per share of common stock:




















     Net income diluted

$             0.28


$          0.24


$          0.14


$          0.11


$          0.18

     Net income basic

0.29


0.24


0.14


0.11


0.18

     Cash dividends declared

0.00


0.00


0.00


0.00


0.00











Average diluted shares outstanding

38,252,351


38,169,863


38,141,550


35,452,968


34,395,373

Average basic shares outstanding

37,603,789


37,549,804


37,470,071


34,848,875


34,115,697











 

CONDENSED CONSOLIDATED BALANCE SHEETS          

(Unaudited)



SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES










December 31,


December 31,

(Dollars in thousands, except share data)

2016


2015






Assets





   Cash and due from banks


$               82,520


$               81,216

   Interest bearing deposits with other banks

27,124


54,851

            Total  Cash and Cash Equivalents

109,644


136,067






   Securities:





        Available for sale (at fair value)

950,503


790,766

        Held for investment (at amortized cost)

372,498


203,525

            Total Securities 


1,323,001


994,291






   Loans held for sale


15,332


23,998






   Loans


2,879,536


2,156,330

   Less: Allowance for loan losses


(23,400)


(19,128)

            Net Loans


2,856,136


2,137,202






   Bank premises and equipment, net


58,684


54,579

   Other real estate owned


9,949


7,039

   Goodwill


64,649


25,211

   Other intangible assets


14,572


8,594

   Bank owned life insurance


84,580


43,579

   Net deferred tax assets


60,818


60,274

   Other assets


83,567


43,946



$          4,680,932


$          3,534,780






Liabilities and Shareholders' Equity




Liabilities





   Deposits





        Noninterest demand


$          1,148,309


$             854,447

        Interest-bearing demand


873,727


734,749

        Savings


346,662


295,851

        Money market


802,697


665,353

        Other time certificates


159,887


153,318

        Brokered time certificates


7,342


9,403

        Time certificates of $100,000 or more

184,621


131,266

            Total Deposits


3,523,245


2,844,387






   Securities sold under agreements to repurchase

204,202


172,005

   Federal Home Loan Bank borrowings

415,000


50,000

   Subordinated debt


70,241


69,961

   Other liabilities


32,847


44,974



4,245,535


3,181,327






Shareholders' Equity





   Common stock


3,802


3,435

   Additional paid in capital


454,001


399,162

   Accumulated deficit


(13,657)


(42,858)

   Treasury stock


(1,236)


(73)



442,910


359,666

   Accumulated other comprehensive (loss), net

(7,513)


(6,213)

            Total Shareholders' Equity


435,397


353,453



$          4,680,932


$          3,534,780






Common Shares Outstanding


38,021,835


34,351,409






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)

Fourth


Third


Second


First


Fourth


Net income

$                  10,771


$              9,133


$           5,332


$            3,966


$              6,036













Operating Ratios











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

0.94

%

0.82

%

0.51

%

0.44

%

0.69

%

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

1.00


0.88


0.56


0.48


0.73


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

9.80


8.44


5.15


4.30


6.78


   Efficiency ratio (5)

62.36


68.60


78.01


81.73


72.57


   Noninterest income to total revenue

20.96


20.68


20.89


22.21


21.10













   Net interest margin (1),(2)

3.56

%

3.69

%

3.63

%

3.68

%

3.67

%

   Average equity to average assets

9.56


9.74


9.91


10.30


10.20













Credit Analysis Excluding Acquired Loans











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

$                        142


$            (1,328)


$             (315)


$              (539)


$                 245


   Net charge-offs - acquired loans

141


(81)


(24)


142


324


   Total net charge-offs (recoveries)

$                        283


$            (1,409)


$             (339)


$              (397)


$                 569













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

0.02

%

(0.20)

%

(0.05)

%

(0.10)

%

0.05

%

   Net charge-offs to average loans - acquired loans

0.02


(0.01)


0.00


0.03


0.06


   Toral net charge-offs (recoveries) to average loans

0.04


(0.21)


(0.05)


(0.07)


0.11













   Loan loss provision (recapture) - non-acquired loans

$                     1,161


$                 649


$               423


$                (20)


$                 (40)


   Loan loss provision - acquired loans

(161)


(99)


239


219


409


   Total loan loss provision 

$                     1,000


$                 550


$               662


$                199


$                 369













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

0.96

%

1.00

%

1.01

%

1.04

%

1.03

%

   Discount for credit losses to acquired loans at end of period

4.18


4.24


3.96


3.79


4.24













   Nonperforming loans - non-acquired loans

$                  11,023


$            10,561


$         10,919


$          11,881


$           12,758


   Nonperforming loans - acquired loans

7,048


7,876


4,360


3,707


4,628


   Other real estate owned - non-acquired

3,041


3,681


3,791


5,042


3,699


   Other real estate owned - acquired

1,203


1,468


1,644


2,415


3,340


   Bank branches closed inculded in other real estate owned

5,705


7,585


3,259


634


0


   Total nonperforming assets

$                  28,020


$            31,171


$         23,973


$          23,679


$           24,425













  Restructured loans (accruing)

$                  17,711


$            19,272


$         20,337


$          19,956


$           19,970













  Purchased noncredit impaired loans

$                440,690


$          484,006


$       554,519


$        558,262


$         320,349


  Purchased credit impaired loans

12,996


13,057


13,652


16,531


12,109


  Total acquired loans

$                453,686


$          497,063


$       568,171


$        574,793


$         332,458













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

0.38

%

0.38

%

0.42

%

0.48

%

0.59

%

   Nonperforming loans to loans at end of period - acquired loans

0.24


0.28


0.16


0.15


0.22


   Total nonperforming loans to loans at end of period

0.63


0.66


0.58


0.63


0.81













   Nonperforming assets to total assets - non-acquired

0.42

%

0.48

%

0.41

%

0.44

%

0.47

%

   Nonperforming assets to total assets - acquired

0.18


0.21


0.14


0.15


0.22


   Total nonperforming assets to total assets

0.60


0.69


0.55


0.59


0.69













Per Share Common Stock











   Net income diluted-GAAP basis

$                       0.28


$                0.24


$              0.14


$               0.11


$                0.18


   Net income basic-GAAP basis

0.29


0.24


0.14


0.11


0.18













   Cash dividends declared

0.00


0.00


0.00


0.00


0.00


   Book value per share common

11.45


11.45


11.20


10.91


10.29













Average Balances











Total average assets

$             4,572,188


$      4,420,438


$    4,206,800


$     3,601,381


$      3,463,277


Less: Intangible assets

79,677


80,068


69,449


37,006


34,457


Total average tangible assets

$             4,492,512


$      4,340,370


$    4,137,351


$     3,564,375


$      3,428,820













Total average equity

$                437,077


$          430,410


$       416,748


$        370,816


$         353,392


Less: Intangible assets

79,677


80,068


69,449


37,006


34,457


Total average tangible equity

$                357,400


$          350,342


$       347,299


$        333,810


$         318,935













(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).













































December 31,


December 31,




SECURITIES 





2016


2015




Mortgage-backed











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





$         12,328


$            3,911




Mortgage-backed





616,820


539,688




Collateralized loan obligations





124,889


122,583




Obligations of states and political subdivisions





62,888


39,891




Corporate and other debt securities





73,861


44,273




Private commercial mortgage backed securities





59,717


40,420




   Securities Available for Sale





950,503


790,766















Mortgage-backed





313,576


162,225




Collateralized loan obligations





41,547


41,300




   Securities Held for Investment





355,123


203,525




       Total Securities





$    1,305,626


$        994,291










































December 31,


December 31,




LOANS





2016


2015















Construction and land development





$       160,116


$        108,787




Real estate mortgage





2,194,379


1,733,163




Installment loans to individuals





153,945


85,356




Commercial and financial





370,589


228,517




Other loans





507


507




       Total Loans





$    2,879,536


$     2,156,330


























 

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


(Unaudited)











SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


































2016


2015


Fourth Quarter


Third Quarter


Fourth Quarter


Average




Yield/


Average




Yield/


Average




Yield/

(Dollars in thousands)

Balance


Interest


Rate


Balance


Interest


Rate


Balance


Interest


Rate

Assets


















Earning assets:


















    Securities:


















         Taxable

$       1,251,015


$     6,880


2.20%


$  1,264,345


$    6,966


2.20%


$     924,730


$    5,312


2.30%

         Nontaxable 

28,589


441


6.17


28,344


441


6.22


14,932


220


5.89

                   Total Securities

1,279,604


7,321


2.29


1,292,689


7,407


2.29


939,662


5,532


2.35



















    Federal funds sold and other


















         investments

90,437


517


2.28


55,465


429


3.08


93,728


275


1.16



















    Loans, net

2,833,895


32,056


4.50


2,720,121


32,065


4.69


2,121,053


25,224


4.72



















                  Total Earning Assets

4,203,936


39,894


3.78


4,068,275


39,901


3.90


3,154,442


31,031


3.90



















Allowance for loan losses

(22,819)






(21,934)






(19,940)





Cash and due from banks

90,082






84,592






85,951





Premises and equipment

59,108






62,552






55,139





Intangible assets

79,620






80,068






34,457





Bank owned life insurance

48,954






43,860






43,419





Other assets

113,307






103,025






109,809
























$       4,572,188






$  4,420,438






$  3,463,277























Liabilities and Shareholders' Equity


















Interest-bearing liabilities:


















      Interest-bearing demand

$          812,056


$        149


0.07%


$     781,620


$        151


0.08%


$     666,640


$        129


0.08%

      Savings

343,753


44


0.05


331,685


41


0.05


292,761


39


0.05

      Money market

824,440


429


0.21


864,228


487


0.22


664,512


430


0.26

      Time deposits

360,712


598


0.66


374,852


613


0.65


299,189


265


0.35

      Federal funds purchased and 


















        securities sold under agreements to repurchase

184,612


110


0.24


184,170


118


0.25


168,444


89


0.21

      Federal Home Loan Bank borrowings

339,457


392


0.46


223,467


240


0.43


50,000


405


3.21

      Other borrowings

70,197


544


3.08


70,137


516


2.93


69,927


458


2.60



















                     Total Interest-Bearing Liabilities

2,935,227


2,266


0.31


2,830,159


2,166


0.30


2,211,473


1,815


0.33



















Noninterest demand

1,167,687






1,131,073






878,709





Other liabilities

32,197






28,796






19,703





                     Total Liabilities 

4,135,111






3,990,028






3,109,885























Shareholders' equity

437,077






430,410






353,392
























$       4,572,188






$  4,420,438






$  3,463,277























Interest expense as a % of earning assets  





0.21%






0.21%






0.23%

Net interest income as a % of earning assets  



$   37,628


3.56%




$  37,735


3.69%




$  29,216


3.67%





































(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)


Fourth Quarter


Third Quarter


Second Quarter


First Quarter


Fourth Quarter













Customer Relationship Funding (Period End)










      Noninterest demand












Commercial


$            860,449


$           892,876


$         860,953


$          768,890


$         592,621


Retail


220,134


209,351


211,722


212,367


198,077


Public funds


48,690


42,147


44,275


52,244


46,300


Other


19,036


24,168


29,842


20,568


17,449




1,148,309


1,168,542


1,146,792


1,054,069


854,447













      Interest-bearing demand












Commercial


102,320


100,824


102,105


101,767


77,500


Retail


591,808


567,286


549,301


496,846


479,056


Public funds


179,599


108,370


124,982


152,291


178,193




873,727


776,480


776,388


750,904


734,749













      Total transaction accounts












Commercial


962,769


993,700


963,058


870,657


670,121


Retail


811,942


776,637


761,023


709,213


677,133


Public funds


228,289


150,517


169,257


204,535


224,493


Other


19,036


24,168


29,842


20,568


17,449




2,022,036


1,945,022


1,923,180


1,804,973


1,589,196













      Savings


346,662


340,899


330,928


313,179


295,851













      Money market












Commercial


286,879


313,200


293,724


271,567


208,520


Retail


411,696


411,550


419,821


380,233


312,756


Public funds


104,122


134,181


147,385


89,857


144,077




802,697


858,931


860,930


741,657


665,353













      Time certificates of deposit


351,850


365,641


386,278


362,638


293,987

            Total Deposits


$         3,523,245


$        3,510,493


$      3,501,316


$       3,222,447


$      2,844,387













      Customer sweep accounts


$            204,202


$           167,693


$         183,387


$          198,330


$         172,005













      Total core customer funding (1)


$         3,375,597


$        3,312,545


$      3,298,425


$       3,058,139


$      2,722,405

























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































 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/seacoast-achieves-ambitious-2016-earnings-goal-and-establishes-guidance-for-2017-300400829.html

SOURCE Seacoast Banking Corporation of Florida