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Press Release

Seacoast Reports Second Quarter 2017 Results

- Net Income Increased 44% Year-Over-Year to $7.7 Million; Net Revenue Increased 25% to $54.6 Million

- Expands into Highly Attractive Tampa MSA with Completion of GulfShore Acquisition

- Posts Another Record Quarter of Consumer and Small Business Originations

Company Release - 7/27/2017 4:07 PM ET

STUART, Fla., July 27, 2017 /PRNewswire/ -- Seacoast Banking Corporation of Florida ("Seacoast" or "the Company") (NASDAQ: SBCF) today reported net income of $7.7 million for the second quarter of 2017, a 44% or $2.3 million increase from the second quarter of 2016. Year to date net income as of June 30, 2017 was $15.6 million, a 68% or $6.3 million increase compared to the prior year period. The Company reported second quarter adjusted net income1 of $12.7 million, representing a 38% or $3.5 million increase from the second quarter of 2016. Year to date adjusted net income1 was $22.9 million, a 42% or $6.7 million increase compared to prior year to date results.

For the second quarter 2017, return on average tangible assets was 0.66%, return on average tangible shareholders' equity was 7.25%, and the efficiency ratio was 73.90%, compared to 0.56%, 6.62%, and 78.01%, respectively, in the second quarter of 2016.  Adjusted return on average tangible assets1 was 1.02%, adjusted return on average tangible shareholders' equity1 was 11.22%, and the adjusted efficiency ratio1 was 61.20%, compared to 0.89%, 10.60%, and 64.78%, respectively, in the second quarter of 2016. 

Dennis S. Hudson, III, Seacoast's Chairman and CEO, said "Our commitment to organic growth is producing continued consumer and small business loan growth, with a robust sales pipeline and expansion in households and customers, as we follow our credit guardrails and maintain loan granularity. Our loan growth is matched with continued execution of sound, accretive acquisitions that allow us to implement our proven integration playbook and strengthen our footprint in important Florida markets."

"Our investments over the last six months have helped put Seacoast in a position to successfully execute our Vision 2020 plan, based on modernizing how we sell while lowering our cost-to-serve. The signs of progress are already evident as we boost transactions outside the branch and provide a heightened level of banking convenience through mobile adoption." 

Guidance 

The Company is reiterating its previous guidance of $1.28 to $1.32 adjusted diluted earnings per share1 for full year 2017.

Notable Items Affecting Second Quarter 2017 Results

As Seacoast continues to scale and invest in its Vision 2020 objectives, certain items, many of which were introduced last quarter, aggregated to $8.2 million in noninterest expense in the second quarter.


  • Leveraging our proven acquisition playbook, we completed the acquisition of GulfShore Bank on April 7, 2017, expanding the Seacoast footprint to the Tampa market.  GulfShore and other merger and acquisition-related charges totaled $5.1 million2, including $3.0 million of compensation-related expense.  We added 36 full-time equivalent ("FTE") associates to our overall headcount to service the Tampa market.  These additions were partially offset by strategic headcount reductions in other areas.
  • We continued execution of our branch reduction strategy, completing five branch closures in the first half of this year.  Expenses associated with the four previously announced branch closures, and one additional closure in the second quarter, totaled $1.9 million2.
  • During the first quarter 2017, the Company onboarded a commercial lending team focused on specialized equipment lending for lower middle market companies.  The second quarter noninterest expense reflects the full $571 thousand impact of this team on noninterest expense.
  • During the second quarter, we recorded incentive expense totaling $247 thousand for one-time signing bonuses associated with investments in technology and audit talent as we scale our organization for growth.
  • We opened a second customer support center in Orlando during the quarter, expanding our ability to support growth and our customers' ever-increasing utilization of our 24/7 service model.  This contributed to an increase in expenses in the second quarter by approximately $200 thousand.
  • Net loss on other real estate owned and repossessed assets increased $507 thousand compared to the prior quarter, with a $346 thousand net gain in the first quarter, and losses of $161 thousand in the second quarter.

Second Quarter 2017 Financial Highlights

Income Statement


  • Net income was $7.7 million, or $0.18 per average common diluted share, compared to $7.9 million or $0.20 for the prior quarter and $5.3 million or $0.14 for the second quarter of 2016.  For the six months ended June 30, 2017, net income was $15.6 million compared to $9.3 million for the six months ended June 30, 2016.  Adjusted net income1 was $12.7 million, or $0.29 per average common diluted share, compared to $10.3 million or $0.26 for the prior quarter and $9.2 million or $0.24 for the second quarter of 2016.  For the six months ended June 30, 2017, adjusted net income1 was $22.9 million compared to $16.2 million for the six months ended June 30, 2016.
  • Net revenues were $54.6 million, an increase of $6.6 million or 14% compared to the prior quarter, and an increase of $11.0 million or 25% from the second quarter of 2016.  For the six months ended June 30, 2017, net revenues were $102.7 million, an increase of $20.1 million or 24% compared to the six months ended June 30, 2016. Adjusted revenues1 were $54.6 million, an increase of $6.6 million, or 14%, from the prior quarter and an increase of $11.0 million, or 25% from the second quarter of 2016.  For the six months ended June 30, 2017, adjusted revenues1 were $102.7 million, an increase of $20.7 million or 25% compared to the six months ended June 30, 2016.
  • Net interest income totaled $44.2 million, an increase of $6.0 million or 16% from the prior quarter and an increase of $9.7 million or 28% from the second quarter of 2016.  The current quarter benefited from accretion of $1.5 million associated with early payoffs on securities and acquired loans. For the six months ended June 30, 2017, net interest income totaled $82.3 million, an increase of $17.6 million or 27% compared to the six months ended June 30, 2016.
  • Noninterest income totaled $10.5 million, an increase of $0.6 million or 6% compared to the prior quarter and $1.3 million or 15% higher than the second quarter of 2016. For the six months ended June 30, 2017, noninterest income totaled $20.4 million, 14% higher than the six months ended June 30, 2016.  Mortgage banking fees declined quarter over quarter, the result of shifting consumer demand for construction product and tight inventory levels.  Offsetting the decline, marine finance fees increased quarter over quarter reflecting strong demand for marine vessels and a strategic shift to selling more production.  Other noninterest income also increased quarter over quarter by $451 thousand, largely the result of pricing increases implemented across the franchise on a number of services offered. 
  • Net interest margin was 3.84% in the current quarter compared to 3.63% in the prior quarter and 3.63% in the second quarter of 2016.  Net interest margin benefited from accretion on early payoffs of securities and acquired loans totaling 13 basis points.  The remaining increase quarter over quarter was primarily the result of higher short-term interest rates. 
  • The provision for loan losses was $1.4 million compared to $1.3 million in the prior quarter and $0.7 million in the second quarter of 2016, as a result of growth in loans outstanding.
  • Noninterest expense was $41.6 million compared to $34.7 million in the prior quarter and $34.8 million in the second quarter of 2016. For the six months ended June 30, 2017, noninterest expense was $76.4 million compared to $67.1 million for the six months ended June 30, 2016.
    • The current quarter included expenses of $1.9 million associated with branch reduction initiatives, which are expected to have a positive impact to expenses over the remainder of the year. In addition, $5.9 million of merger related charges and amortization of intangibles was incurred in the current quarter primarily related to the acquisition of GulfShore Bank in April 2017.
    • Adjusted noninterest expense1 was $33.8 million compared to $30.9 million in the prior quarter, and $28.4 million in the second quarter of 2016.  For the six months ended June 30, 2017, adjusted noninterest expense1 was $64.8 million compared to $55.3 million for the six months ended June 30, 2016.   The increase quarter over quarter is related to the addition of ongoing headcount and expenses associated with our new Tampa market operations totaling $1.1 million, a loss of $161 thousand on other real estate owned in the current quarter compared to a net gain of $346 thousand in the prior quarter, the full $571 thousand impact in the current quarter of the commercial lending team acquired in the first quarter, as well as other investments made in talent and professional services to scale the organization.
  • Seacoast recorded a $3.9 million income tax provision in the current quarter, compared to $4.1 million in the prior quarter and $2.8 million in the second quarter of 2016. Tax benefits in excess of stock-based compensation were $331 thousand in the current quarter and $234 thousand in the prior quarter.
  • Second quarter 2017 adjusted revenues1 increased 14% compared to prior quarter, while adjusted noninterest expense1 increased 9%, providing 5% operating leverage.
  • The efficiency ratio was 73.9% compared to 71.1% in the prior quarter and 78.0% in the second quarter of 2016.  The adjusted efficiency ratio1 decreased to 61.2% compared to 64.7% in the prior quarter and 64.8% in the second quarter of 2016. 

Balance Sheet

  • At June 30, 2017, the Company had total assets of $5.3 billion and total shareholders' equity of $577.4 million.  Book value per share was $13.29 and tangible book value per share was $10.55, compared to $12.34 and $10.41, respectively, at March 31, 2017.
  • Loan production remained strong across all categories.  Net loans totaled $3.3 billion at June 30, 2017, an increase of $355 million or 12% compared to March 31, 2017, and an increase of $709 million or 27% from June 30, 2016.  Excluding acquisitions, loans increased $463 million or 18% from the second quarter of 2016. 
    • Consumer and small business originations reached $98 million, a new record level, during the current quarter.
    • Commercial originations remain strong at $110 million. 
    • We continue to prudently manage CRE exposure. At 49% and 217% of total risk-based capital respectively, construction and land development and commercial real estate loan concentrations remain well below regulatory guidance.
    • Closed residential loans retained during the current quarter were $85 million, reflecting continued strong performance.
  • Pipelines (loans in underwriting and approval or approved and not yet closed) remain strong at $146 million in commercial, $72 million in mortgage, and $50 million in consumer and small business.
    • Commercial pipelines increased $23.7 million, or 19%, over prior quarter and $33.1 million, or 29%, over year-ago levels.
    • Mortgage pipelines decreased $6.7 million, or 9%, from prior quarter and increased $5.6 million, or 8%, over year-ago levels.
    • Consumer and small business increased from prior quarter by $5.2 million, or 12%, and from year-ago levels by $11.2 million, or 29%.
  • Total deposits were $4.0 billion as of June 30, 2017, an increase of $297 million, or 8%, compared to prior quarter and an increase of $474 million, or 14%, from the second quarter of 2016.
    • Deposit growth reflects our success in growing households both organically and through acquisitions. Since June 30, 2016, interest bearing deposits (interest bearing demand, savings and money markets deposits) increased $205 million, or 10%, to $2.2 billion, noninterest bearing demand deposits increased $162 million, or 14%, to $1.3 billion, and CDs increased $108 million, or 28%, to $494 million. Excluding acquired deposits, noninterest bearing deposits increased 8% and total deposits increased 1% compared to June 30, 2016.
    • The Company's balance sheet continues to be primarily core deposit funded. Core customer funding increased to $3.6 billion at June 30, 2017, a 5% increase from March 31, 2017 and an 11% increase from June 30, 2016.
    • Seacoast continues to benefit from our competitive cost of funds. Overall cost of deposits in the current quarter is 0.17%, reflecting the significant value of the deposit franchise.
  • Second quarter return on average assets (ROA) was 0.61%, compared to 0.68% in the prior quarter and 0.51% from the second quarter of 2016. Return on average tangible assets (ROTA) was 0.66%, compared to 0.74% in the prior quarter and 0.56% in the second quarter of 2016. Adjusted ROTA1 was 1.02% compared to 0.90% in the prior quarter and 0.89% in the second quarter of 2016.

Capital

  • Issued 2.6 million shares in connection with the acquisition of GulfShore Bank on April 7, 2017.
  • The common equity tier 1 capital ratio (CET1) was 12.1%, total capital ratio was 14.5% and the tier 1 leverage ratio was 10.3% at June 30, 2017. 
  • Tangible common equity to tangible assets was 8.9% at June 30, 2017.

Asset Quality

  • Nonperforming loans to total loans outstanding at June 30, 2017 decreased to 0.52% from 0.57% at March 31, 2017 and from 0.58% as of June 30, 2016.
  • Nonperforming assets to total assets declined to 0.49% at June 30, 2017, compared to 0.52% at March 31, 2017 and 0.55% one year ago.  Of the $25.7 million in nonperforming assets, $5 million relates to seven closed branch properties held as REO. 
  • The ratio of allowance for loan losses to non-acquisition related loans was 0.95% at June 30, 2017, 0.95% at March 31, 2017, and 0.99% at June 30, 2016.

 

 

 

FINANCIAL HIGHLIGHTS






(Dollars in thousands, except per share data)

2Q17

1Q17

4Q16

3Q16

2Q16









Selected Balance Sheet Data (at period end):







     Total Assets


$5,281,295

$4,769,775

$4,680,932

$4,513,934

$4,381,204

     Gross Loans



3,330,075

2,973,759

2,879,536

2,769,338

2,616,052

     Total Deposits



3,975,458

3,678,645

3,523,245

3,510,493

3,501,316









Performance Measures:








     Net Income


$7,676

$7,926

$10,771

$9,133

$5,332

     Net Interest Margin


3.84%

3.63%

3.56%

3.69%

3.63%

     Average Diluted Shares Outstanding (000)

43,556

39,499

38,252

38,170

38,142

     Diluted Earnings Per Share (EPS)

$0.18

$0.20

$0.28

$0.24

$0.14

Return on (annualized):








     Average Assets (ROA)

0.61%

0.68%

0.94%

0.82%

0.51%

     Average Tangible Common Equity   (ROTCE)

7.25

8.77

12.51

10.91

6.62

Efficiency Ratio


73.90

71.08

62.36

68.60

78.01









Adjusted Operating Measures1:








     Adjusted Net Income

$12,665

$10,270

$11,803

$11,061

$9,156

     Adjusted Diluted EPS


0.29

0.26

0.31

0.29

0.24

     Adjusted ROTA


1.02%

0.90%

1.05%

1.01%

0.89%

     Adjusted ROTCE


11.22

10.74

13.14

12.56

10.60

     Adjusted Efficiency Ratio

61.20

64.65

60.84

63.14

64.78

     Adjusted Noninterest Expenses as a Percentage of Average Tangible
Assets


2.73

2.71

2.56

2.76

2.76








Other Data







     Market Capitalization


$1,047,361

$976,368

$838,762

$611,824

$617,007

     Full Time Equivalent Employees


759

743

725

731

784

     Number of ATMs


76

76

77

80

85

     Full Service Banking Offices


45

46

47

47

57

 Registered Online Users


75,394

71,385

67,243

66,115

61,634

 Registered Mobile Users


55,013

50,729

47,131

44,128

38,619



1Non-GAAP measure, see "Explanation of Certain Unaudited Non-GAAP Financial Measures"
Effective in the first quarter of 2017, adjusted net income and adjusted noninterest expense exclude the effect of amortization of acquisition-related intangibles.  Prior periods have been revised to conform with the current period presentation.

Second Quarter and Year-to-Date 2017 Strategic Highlights

Modernizing How We Sell

  • The Company reached another significant milestone, surpassing 100,000 households during the quarter.
  • We had a record number of deposit accounts opened outside of the branch this quarter, with 13% of all deposit accounts being opened through non-branch channels including our website and 24/7 customer support center. 
  • On May 4, we announced the expansion of our presence in the South Florida market through our agreement to acquire Palm Beach Community Bank. This acquisition will build upon our previous investment, the acquisition of Grand Bankshares Inc., completed in July 2015.  On May 18, we signed an agreement to acquire NorthStar Banking Corporation, the holding company for NorthStar Bank, headquartered in Tampa, Florida. The addition of NorthStar Bank deepens our presence in the Tampa market and builds on our acquisition of GulfShore Bank completed in April 2017.
  • Consumer and small business loans originated in digital channels or by our customer support center grew 25% over first quarter 2017 and by 9% year-over-year. These are the fastest growing channels and reflects customers seeking the high level of convenience across our banking platform.

Lowering Our Cost to Serve

  • Mobile penetration increased to 32% of eligible primary consumer checking customers from 28% in June of last year. 
  • 39% of checks are now deposited outside the branch network, compared to 33% in June of last year. 
  • In the first half of 2017, we consolidated five banking center locations. Costs associated with closures in the second quarter were $1.9 million, and the associated benefits are expected to be more fully realized in the second half of the year.
  • Customer adoption of more convenient digital channels continues to grow. In June 2017, our non-teller transactions made up 50% of our total transaction volume, up from 41% two years ago.  We expect this shift in customer preference to continue to accelerate, requiring continued focus on building a digitally integrated business model.

Driving Improvements in How Our Business Operates

  • We recognized savings in the quarter due to the successful renegotiation of our agreement with a key technology and digital services provider. The agreement expands digital banking capabilities, improves service level agreements and increases our ability to scale. 
  • In the first quarter 2017, by opening a second customer support center in Orlando, we expanded our ability to support growth and our customers' ever-increasing utilization of our 24/7 service model.  This contributed to an increase in expenses in the current quarter by approximately $200 thousand, while providing us with access to a larger talent pool and helping strengthen our business continuity plan.
  • During the first half of 2017, we have invested to upgrade core infrastructure and relocate our primary data center to a hardened facility dedicated to providing resilient infrastructure services.

Scaling and Evolving Our Culture

  • Earlier this year Associates participated in our annual engagement survey, which measures items such as job satisfaction and commitment to our customers. Key scores in the survey rose across the board, surpassing the 90th percentile norm for employee engagement.
  • We welcomed 36 associates from GulfShore Bank. We continue to grow our talent base in this highly attractive market.  Joseph Caballero, former CEO of Gulfshore Bank will lead Seacoast's efforts in Tampa accepting a role as Tampa market executive.  Joe brings significant experience operating in the Tampa MSA, with over 25 years' experience in banking and middle market lending. 
  • Julie Kleffel, EVP and head of community banking was named an Orlando Business Journal 2017 Business Executive of the Year. She was recognized as part of the publication's annual Women Who Mean Business awards in April.

1Non-GAAP measure, see "Explanation of Certain Unaudited Non-GAAP Financial Measures"
Effective in the first quarter of 2017, adjusted net income and adjusted noninterest expense exclude the effect of amortization of acquisition-related intangibles.  Prior periods have been revised to conform with the current period presentation.

2Excluded from the calculation of Adjusted Noninterest Expense, a Non-GAAP measure.  See "Explanation of Certain Unaudited Non-GAAP Financial Measures."

OTHER INFORMATION

Conference Call Information

Seacoast will host a conference call on Friday, July 28, 2017 at 10:00 a.m. (Eastern Time) to discuss the earnings results.  Investors may call in (toll-free) by dialing (888) 517-2458 (passcode: 9982 916). Slides will be used during the conference call and may be accessed at Seacoast's website at SeacoastBanking.com by selecting "Presentations" under the heading "Investor Services."  A replay of the call will be available for one month, beginning late afternoon of July 28, by dialing (888) 843-7419 and using passcode: 9982 916.

Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast's website at SeacoastBanking.com. The link is located in the subsection "Presentations" under the heading "Investor Services." Beginning the afternoon of July 28, an archived version of the webcast can be accessed from this same subsection of the website.  The archived webcast will be available for one year.   

About Seacoast Banking Corporation of Florida (NASDAQ: SBCF)

Seacoast Banking Corporation of Florida is one of the largest community banks headquartered in Florida with approximately $5.3 billion in assets and $4.0 billion in deposits as of June 30, 2017. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, 45 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 the adjacent Tampa market, and west to Okeechobee and surrounding counties. More information about the Company is available at SeacoastBanking.com.

Cautionary Notice Regarding Forward-Looking Statements

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

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

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

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2016, under "Special Cautionary Notice Regarding Forward-looking Statements" and "Risk Factors", and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov.

 

FINANCIAL  HIGHLIGHTS 





(Unaudited)










SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES





























(Dollars in thousands, except per share data)

Three Months Ended


Six Months Ended



June 30,


March 31,


December 31,


September 30,


June 30,


June 30,


June 30,



2017


2017


2016


2016


2016


2017


2016


Summary of Earnings















Net income

$          7,676


$          7,926


$        10,771


$          9,133


$          5,332


$        15,602


$          9,298


Net interest income  (1)

44,320


38,377


37,628


37,735


34,801


82,697


65,150


Net interest margin  (1), (2)

3.84

%

3.63

%

3.56

%

3.69

%

3.63

%

3.74

%

3.65

%
















Performance Ratios















Return on average assets-GAAP basis (2)

0.61

%

0.68

%

0.94

%

0.82

%

0.51

%

0.64

%

0.48

%

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

0.66


0.74


1.00


0.88


0.56


0.70


0.52


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

1.02


0.90


1.05


1.01


0.89


0.96


0.85

















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

5.43


6.89


9.80


8.44


5.15


6.08


4.75


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

7.25


8.77


12.51


10.91


6.62


7.94


5.89


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

11.22


10.74


13.14


12.56


10.60


11.00


9.57


Efficiency ratio (4)

73.90


71.08


62.36


68.60


78.01


72.58


79.76


Adjusted efficiency ratio (5)

61.20


64.65


60.84


63.14


64.78


62.82


67.04


Noninterest income to total revenue

19.16


20.61


20.96


20.68


20.89


19.84


21.52


Average equity to average assets

11.17


9.93


9.56


9.74


9.91


10.58


10.09

















Per Share Data















Net income diluted-GAAP basis

$             0.18


$             0.20


$             0.28


$             0.24


$             0.14


$             0.38


$             0.25


Net income basic-GAAP basis

0.18


0.20


0.29


0.24


0.14


0.38


0.26


Adjusted earnings (5)

0.29


0.26


0.31


0.29


0.24


0.55


0.44

















Book value per share common

13.29


12.34


11.45


11.45


11.20


13.29


11.20


Tangible book value per share

10.55


10.41


9.37


9.35


9.08


10.55


9.08


Cash dividends declared

0.00


0.00


0.00


0.00


0.00


0.00


0.00

















Other Data















Market capitalization (6)

1,047,361


976,368


838,762


611,824


617,007


1,047,361


617,007


Full-time equivalent employees

759


743


725


731


784


759


784


Number of ATMs

76


76


77


80


85


76


85


Full service banking offices

45


46


47


47


57


45


57


Registered online users

75,394


71,385


67,243


66,115


61,634


75,394


61,634


Registered mobile devices

55,013


50,729


47,131


44,128


38,619


55,013


38,619
































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














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











(3)  The Company defines average tangible assets as total assets less intangible assets, 












      and tangible common equity as total shareholders' equity less intangible assets.













(4) Defined as (noninterest expense less foreclosed property expense and amortization of intangibles) divided by net operating revenue








     (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains).










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












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












 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME




(Unaudited)









SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES




























QUARTER


YTD


2017


2016


June 30,


June 30,

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

Second


First


Fourth


Third


Second


2017


2016















Interest on securities:














     Taxable

$          8,379


$          8,087


$          6,880


$          6,966


$          6,603


$        16,466


$        12,286

     Nontaxable

206


287


287


287


299


493


463

Interest and fees on loans

38,209


31,891


32,007


31,932


29,244


70,100


55,278

Interest on federal funds sold and other investments

604


510


517


429


433


1,114


723

         Total Interest Income

47,398


40,775


39,691


39,614


36,579


88,173


68,750















Interest on deposits

854


624


622


679


688


1,478


1,292

Interest on time certificates

814


566


598


613


550


1,380


863

Interest on borrowed money

1,574


1,420


1,046


874


848


2,994


1,880

         Total Interest Expense

3,242


2,610


2,266


2,166


2,086


5,852


4,035















         Net Interest Income

44,156


38,165


37,425


37,448


34,493


82,321


64,715

Provision for loan losses

1,401


1,304


1,000


550


662


2,705


861

         Net Interest Income After Provision for Loan Losses

42,755


36,861


36,425


36,898


33,831


79,616


63,854















Noninterest income:














     Service charges on deposit accounts

2,435


2,422


2,612


2,698


2,230


4,857


4,359

     Trust fees

917


880


969


820


838


1,797


1,644

     Mortgage banking fees

1,272


1,552


1,616


1,885


1,364


2,824


2,363

     Brokerage commissions and fees

351


377


480


463


470


728


1,101

     Marine finance fees

326


134


115


138


279


460


420

     Interchange income

2,671


2,494


2,334


2,306


2,370


5,165


4,587

     Other deposit based EFT fees

114


140


125


109


116


254


243

     BOLI income

757


733


611


382


379


1,490


1,220

     Other

1,624


1,173


1,060


963


1,065


2,797


1,804


10,467


9,905


9,922


9,764


9,111


20,372


17,741

     Securities gains, net

21


0


7


225


47


21


136

         Total Noninterest Income

10,488


9,905


9,929


9,989


9,158


20,393


17,877















Noninterest expenses:














     Salaries and wages

18,375


15,369


12,476


14,337


13,884


33,744


27,283

     Employee benefits

2,935


3,068


2,475


2,425


2,521


6,003


5,003

     Outsourced data processing costs

3,456


3,269


3,076


3,198


2,803


6,725


7,242

     Telephone / data lines

648


532


502


539


539


1,180


1,067

     Occupancy 

4,421


3,157


2,830


3,675


3,645


7,578


6,617

     Furniture and equipment 

1,679


1,391


1,211


1,228


1,283


3,070


2,281

     Marketing 

1,074


922


847


780


957


1,996


2,006

     Legal and professional fees

3,276


2,132


2,370


2,213


2,656


5,408


5,013

     FDIC assessments

650


570


661


517


643


1,220


1,187

     Amortization of intangibles

839


719


719


728


593


1,558


1,039

     Asset dispositions expense

136


53


84


219


160


189


250

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

161


(346)


(161)


(96)


(201)


(185)


(252)

     Early redemption cost for Federal Home Loan Bank advances

0


0


0


0


1,777


0


1,777

     Other 

3,975


3,910


3,207


3,672


3,548


7,885


6,636

         Total Noninterest Expenses

41,625


34,746


30,297


33,435


34,808


76,371


67,149















         Income Before Income Taxes

11,618


12,020


16,057


13,452


8,181


23,638


14,582

Income taxes

3,942


4,094


5,286


4,319


2,849


8,036


5,284















         Net Income

$          7,676


$          7,926


$        10,771


$          9,133


$          5,332


$        15,602


$          9,298















Per share of common stock:




























     Net income diluted

$             0.18


$             0.20


$             0.28


$             0.24


$             0.14


$             0.38


$             0.25

     Net income basic

0.18


0.20


0.29


0.24


0.14


0.38


0.26

     Cash dividends declared

0.00


0.00


0.00


0.00


0.00


0.00


0.00















Average diluted shares outstanding

43,556,285


39,498,835


38,252,351


38,169,863


38,141,550


41,538,769


36,797,259

Average basic shares outstanding

42,841,152


38,839,284


37,603,789


37,549,804


37,470,071


40,851,273


36,159,473


 

 

CONDENSED CONSOLIDATED BALANCE SHEETS          




(Unaudited)







SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES





















June 30,


March 31,


December 31,


September 30,


June 30,

(Dollars in thousands, except share data)


2017


2017


2016


2016


2016












Assets











   Cash and due from banks


$        88,133


$      133,923


$        82,520


$        89,777


$      113,028

   Interest bearing deposits with other banks


36,490


10,914


27,124


77,606


13,774

            Total Cash and Cash Equivalents


124,623


144,837


109,644


167,383


126,802












   Securities:











        Available for sale (at fair value)


1,016,744


909,275


950,503


866,613


923,560

        Held to maturity (at amortized cost)


397,096


379,657


372,498


392,138


401,570

            Total Securities 


1,413,840


1,288,932


1,323,001


1,258,751


1,325,130












   Loans held for sale


22,262


16,326


15,332


20,143


20,075












   Loans


3,330,075


2,973,759


2,879,536


2,769,338


2,616,052

   Less: Allowance for loan losses


(26,000)


(24,562)


(23,400)


(22,684)


(20,725)

            Net Loans


3,304,075


2,949,197


2,856,136


2,746,654


2,595,327












   Bank premises and equipment, net


56,765


58,611


58,684


59,035


63,817

   Other real estate owned


8,497


7,885


9,949


12,734


8,694

   Goodwill


101,739


64,649


64,649


64,649


64,123

   Other intangible assets, net


16,941


13,853


14,572


15,291


16,154

   Bank owned life insurance


88,003


85,237


84,580


44,044


43,729

   Net deferred tax assets


52,195


55,834


60,818


58,848


62,648

   Other assets


92,355


84,414


83,567


66,402


54,705

          Total Assets


$   5,281,295


$   4,769,775


$   4,680,932


$   4,513,934


$   4,381,204












Liabilities and Shareholders' Equity











Liabilities











   Deposits











        Noninterest demand


$   1,308,458


$   1,225,124


$   1,148,309


$   1,168,542


$   1,146,792

        Interest-bearing demand


934,861


870,457


873,727


776,480


776,388

        Savings


376,825


363,140


346,662


340,899


330,928

        Money market


861,119


821,606


802,697


858,931


860,930

        Other time certificates


155,265


153,840


159,887


166,987


172,816

        Brokered time certificates


149,270


66,741


7,342


8,218


9,216

        Time certificates of $100,000 or more


189,660


177,737


184,621


190,436


204,246

            Total Deposits


3,975,458


3,678,645


3,523,245


3,510,493


3,501,316












   Securities sold under agreements to repurchase


167,558


183,107


204,202


167,693


183,387

   Federal Home Loan Bank borrowings


395,000


302,000


415,000


305,000


151,000

   Subordinated debt


70,381


70,311


70,241


70,171


70,101

   Other liabilities


95,521


33,218


32,847


25,058


49,971

          Total Liabilities


4,703,918


4,267,281


4,245,535


4,078,415


3,955,775












Shareholders' Equity











   Common stock


4,339


4,075


3,802


3,799


3,799

   Additional paid in capital


574,842


510,806


454,001


453,007


451,542

   Accumulated earnings/(deficit)


1,945


(5,731)


(13,657)


(24,427)


(33,560)

   Treasury stock


(1,768)


(1,172)


(1,236)


(691)


(482)



579,358


507,978


442,910


431,688


421,299

   Accumulated other comprehensive income/(loss), net


(1,981)


(5,484)


(7,513)


3,831


4,130

          Total Shareholders' Equity


577,377


502,494


435,397


435,519


425,429

          Total Liabilities & Shareholders' Equity


$   5,281,295


$   4,769,775


$   4,680,932


$   4,513,934


$   4,381,204












Common Shares Outstanding


43,458,973


40,715,938


38,021,835


38,025,020


37,993,013












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




 

 

CONSOLIDATED QUARTERLY FINANCIAL  DATA





(Unaudited)






SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES























QUARTERS


2017


2016


(Dollars in thousands)

Second


First


Fourth


Third


Second













Credit Analysis 











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

$              368


$              260


$              142


$         (1,328)


$            (315)


   Net charge-offs (recoveries) - acquired loans

(405)


(118)


141


(81)


(24)


   Total net charge-offs (recoveries)

$              (37)


$              142


$              283


$         (1,409)


$            (339)













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

0.05

%

0.04

%

0.02

%

(0.20)

%

(0.05)

%

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

(0.05)


(0.02)


0.02


(0.01)


0.00


   Total net charge-offs (recoveries) to average loans

0.00


0.02


0.04


(0.21)


(0.05)













   Loan loss provision (recapture) - non-acquired loans

$          1,690


$          1,504


$          1,161


$              649


$              423


   Loan loss provision (recapture) - acquired loans

(289)


(200)


(161)


(99)


239


   Total loan loss provision 

$          1,401


$          1,304


$          1,000


$              550


$              662













   Allowance for loan losses - non-acquired loans

$        25,809


$        24,487


$        23,243


$        22,225


$        20,248


   Allowance for loan losses - acquired loans

191


75


157


459


477


   Total allowance for loan losses

$        26,000


$        24,562


$        23,400


$        22,684


$        20,725













   Non-acquired loans at end of period 

$   2,722,866


$   2,572,549


$   2,425,850


$   2,272,275


$   2,047,881


   Purchased noncredit impaired loans at end of period 

594,077


388,228


440,690


484,006


554,519


   Purchased credit impaired loans at end of period

13,132


12,982


12,996


13,057


13,652


   Total loans

$   3,330,075


$   2,973,759


$   2,879,536


$   2,769,338


$   2,616,052













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

0.95

%

0.95

%

0.96

%

0.98

%

0.99

%

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

0.03


0.02


0.03


0.09


0.08


   Discount for credit losses to acquired loans at end of period

3.37


4.25


4.18


4.24


3.96













End of Period











   Nonperforming loans - non-acquired loans

$        10,541


$        10,557


$        11,023


$        10,561


$        10,919


   Nonperforming loans - acquired loans

6,632


6,428


7,048


7,876


4,360


   Other real estate owned - non-acquired

1,748


2,790


3,041


3,681


3,791


   Other real estate owned - acquired

1,645


1,203


1,203


1,468


1,644


   Bank branches closed included in other real estate owned

5,104


3,892


5,705


7,585


3,259


   Total nonperforming assets

$        25,670


$        24,870


$        28,020


$        31,171


$        23,973













   Restructured loans (accruing)

$        16,941


$        18,125


$        17,711


$        19,272


$        20,337













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

0.32

%

0.36

%

0.38

%

0.38

%

0.42

%

   Nonperforming loans to loans at end of period - acquired loans

0.20


0.22


0.24


0.28


0.16


   Total nonperforming loans to loans at end of period

0.52


0.57


0.62


0.66


0.58













   Nonperforming assets to total assets - non-acquired

0.33

%

0.36

%

0.42

%

0.48

%

0.41

%

   Nonperforming assets to total assets - acquired

0.16


0.16


0.18


0.21


0.14


   Total nonperforming assets to total assets

0.49


0.52


0.60


0.69


0.55













Average Balances











   Total average assets

$   5,082,002


$   4,699,745


$   4,572,188


$   4,420,438


$   4,206,800


   Less: Intangible assets

114,563


78,878


79,620


80,068


69,449


   Total average tangible assets

$   4,967,439


$   4,620,867


$   4,492,568


$   4,340,370


$   4,137,351













   Total average equity

$      567,448


$      466,847


$      437,077


$      430,410


$      416,748


   Less: Intangible assets

114,563


78,878


79,620


80,068


69,449


   Total average tangible equity

$      452,885


$      387,969


$      357,457


$      350,342


$      347,299














June 30,


March 31,


December 31,


September 30,


June 30,


LOANS

2017


2017


2016


2016


2016













Construction and land development

$      230,574


$      174,992


$      160,116


$      153,901


$      142,387


Commercial real estate

1,464,068


1,354,140


1,357,592


1,293,512


1,239,508


Residential real estate

991,144


893,674


836,787


833,413


794,321


Installment loans to individuals

178,595


165,039


153,945


145,523


115,513


Commercial and financial

465,138


385,189


370,589


342,502


323,466


Other loans

556


725


507


489


857


       Total Loans

$   3,330,075


$   2,973,759


$   2,879,536


$   2,769,338


$   2,616,052













 

 

CONSOLIDATED QUARTERLY FINANCIAL  DATA






(Unaudited)





SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES






















June 30, 


March 31, 


 December 31, 


 September 30, 


June 30,

(Dollars in thousands)


2017


2017


2016


2016


2016













Customer Relationship Funding 











      Noninterest demand












Commercial


$      995,720


$      916,940


$      860,449


$      892,876


$      860,953


Retail


238,506


234,109


220,134


209,351


211,722


Public funds


47,691


52,126


48,690


42,147


44,275


Other


26,541


21,949


19,036


24,168


29,842




1,308,458


1,225,124


1,148,309


1,168,542


1,146,792













      Interest-bearing demand












Commercial


155,178


117,629


102,320


100,824


102,105


Retail


659,906


613,121


591,808


567,286


549,301


Public funds


119,777


139,707


179,599


108,370


124,982




934,861


870,457


873,727


776,480


776,388













      Total transaction accounts












Commercial


1,150,898


1,034,569


962,769


993,700


963,058


Retail


898,412


847,230


811,942


776,637


761,023


Public funds


167,468


191,833


228,289


150,517


169,257


Other


26,541


21,949


19,036


24,168


29,842




2,243,319


2,095,581


2,022,036


1,945,022


1,923,180













      Savings


376,825


363,140


346,662


340,899


330,928













      Money market












Commercial


351,871


313,094


286,879


313,200


293,724


Retail


427,575


414,886


411,696


411,550


419,821


Public funds


81,673


93,626


104,122


134,181


147,385




861,119


821,606


802,697


858,931


860,930













      Time certificates of deposit


494,195


398,318


351,850


365,641


386,278

            Total Deposits


$   3,975,458


$   3,678,645


$   3,523,245


$   3,510,493


$   3,501,316













      Customer sweep accounts


$      167,558


$      183,107


$      204,202


$      167,693


$      183,387













      Total core customer funding (1)


$   3,648,821


$   3,463,434


$   3,375,597


$   3,312,545


$   3,298,425

























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







 

 

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






(Unaudited)





SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES






























2017


2016


Second Quarter


First Quarter


Second Quarter


Average




Yield/


Average




Yield/


Average




Yield/

(Dollars in thousands)

Balance


Interest


Rate


Balance


Interest


Rate


Balance


Interest


Rate

Assets


















Earning assets:


















    Securities:


















         Taxable

$   1,261,017


$    8,379


2.66%


$   1,279,246


$   8,087


2.53%


$   1,185,022


$   6,603


2.23%

         Nontaxable 

28,092


316


4.50


27,833


441


6.34


28,445


459


6.45

                   Total Securities

1,289,109


8,695


2.70


1,307,079


8,528


2.61


1,213,468


7,062


2.33



















    Federal funds sold and other


















         investments

72,535


604


3.34


56,771


510


3.64


110,636


433


1.57



















    Loans, net

3,266,812


38,263


4.70


2,918,665


31,949


4.44


2,532,533


29,392


4.67



















                  Total Earning Assets

4,628,456


47,562


4.12


4,282,515


40,987


3.88


3,856,637


36,887


3.85



















Allowance for loan losses

(25,276)






(24,036)






(20,185)





Cash and due from banks

99,974






105,803






92,159





Premises and equipment

59,415






58,783






63,149





Intangible assets

114,563






78,878






69,449





Bank owned life insurance

87,514






84,811






43,542





Other assets

117,355






112,991






102,049























                  Total Assets

$   5,082,002






$   4,699,745






$   4,206,800























Liabilities and Shareholders' Equity


















Interest-bearing liabilities:


















      Interest-bearing demand

$      949,981


$       262


0.11%


$      834,244


$      163


0.08%


$      755,206


$      161


0.09%

      Savings

378,989


51


0.05


353,452


44


0.05


322,567


39


0.05

      Money market

868,427


541


0.25


803,795


417


0.21


810,709


488


0.24

      Time deposits

432,805


814


0.75


347,143


566


0.66


366,263


550


0.60

      Federal funds purchased and 


















        securities sold under agreements to repurchase

174,715


194


0.45


181,102


153


0.34


195,802


129


0.26

      Federal Home Loan Bank borrowings

323,780


780


0.97


426,144


702


0.67


171,011


215


0.51

      Other borrowings

70,343


600


3.42


70,273


565


3.26


70,064


504


2.89



















                     Total Interest-Bearing Liabilities

3,199,040


3,242


0.41


3,016,153


2,610


0.35


2,691,622


2,086


0.31



















Noninterest demand

1,283,255






1,183,813






1,059,039





Other liabilities

32,259






32,932






39,391





                     Total Liabilities 

4,514,554






4,232,898






3,790,052























Shareholders' equity

567,448






466,847






416,748























                     Total Liabilities & Equity

$   5,082,002






$   4,699,745






$   4,206,800























Interest expense as a % of earning assets  





0.28%






0.25%






0.22%

Net interest income as a % of earning assets  



$  44,320


3.84%




$ 38,377


3.63%




$ 34,801


3.63%





































(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.









 

 

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


(Unaudited)



SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


















2017


2016


Year to Date


Year to Date


Average




Yield/


Average




Yield/

(Dollars in thousands)

Balance


Interest


Rate


Balance


Interest


Rate

Assets












Earning assets:












    Securities:












         Taxable

$   1,270,081


$ 16,466


2.59%


$   1,090,662


$ 12,286


2.25%

         Nontaxable 

27,963


757


5.41


23,187


710


6.12

                   Total Securities

1,298,044


17,223


2.65


1,113,849


12,996


2.33













    Federal funds sold and other












         investments

64,697


1,114


3.47


81,425


723


1.79













    Loans, net

3,093,700


70,212


4.58


2,389,653


55,466


4.67













                  Total Earning Assets

4,456,441


88,549


4.01


3,584,927


69,185


3.88













Allowance for loan losses

(24,658)






(19,872)





Cash and due from banks

102,872






87,053





Premises and equipment

59,101






60,106





Intangible assets

96,819






53,228





Bank owned life insurance

86,170






43,594





Other assets

115,184






95,055

















                  Total Assets

$   4,891,929






$   3,904,091

















Liabilities and Shareholders' Equity












Interest-bearing liabilities:












      Interest-bearing demand

$      892,432


$      425


0.10%


$      732,645


$      316


0.09%

      Savings

366,291


95


0.05


312,887


76


0.05

      Money market

836,289


958


0.23


739,087


900


0.24

      Time deposits

390,211


1,380


0.71


335,332


863


0.52

      Federal funds purchased and 












        securities sold under agreements to repurchase

177,891


347


0.39


190,765


256


0.27

      Federal Home Loan Bank borrowings

374,680


1,482


0.80


114,160


624


1.10

      Other borrowings

70,308


1,165


3.34


70,025


1,000


2.87













                     Total Interest-Bearing Liabilities

3,108,102


5,852


0.38


2,494,901


4,035


0.33













Noninterest demand

1,233,809






982,635





Other liabilities

32,593






32,773





                     Total Liabilities 

4,374,504






3,510,309

















Shareholders' equity

517,425






393,782

















                     Total Liabilities & Equity

$   4,891,929






$   3,904,091

















Interest expense as a % of earning assets  





0.26%






0.23%

Net interest income as a % of earning assets  



$ 82,697


3.74%




$ 65,150


3.65%

























(1) On a fully taxable equivalent basis.  All yields and rates have been computed on an annualized basis using amortized cost.

      Fees on loans have been included in interest on loans.  Nonaccrual loans are included in loan balances.





 

 

Explanation of Certain Unaudited Non-GAAP Financial Measures


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

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

 

 

















QUARTER


YTD


(Dollars in thousands except per share data)

Second


First


Fourth


Third


Second


June 30,


June 30,


2017


2017


2016


2016


2016


2017


2016



$         7,676


$         7,926


$      10,771


$         9,133


$         5,332


$      15,602


$         9,298


Net income























BOLI income (benefits upon death)

0


0


0


0


0


0


(464)


Security gains

(21)


0


(7)


(225)


(47)


(21)


(136)


     Total Adjustments to Revenue

(21)


0


(7)


(225)


(47)


(21)


(600)

















Merger related charges

5,081


533


561


1,699


2,446


5,614


6,768


Amortization of intangibles

839


719


719


728


593


1,558


1,039


Branch reductions and other expense initiatives

1,876


2,572


163


894


1,587


4,448


2,300


Early redemption cost for FHLB advances

0


0


0


0


1,777


0


1,777


     Total Adjustments to Noninterest Expense

7,796


3,824


1,443


3,321


6,403


11,620


11,884

















Effective tax rate on adjustments 

(2,786)


(1,480)


(404)


(1,168)


(2,532)


(4,266)


(4,377)


     Adjusted Net Income

$      12,665


$      10,270


$      11,803


$      11,061


$         9,156


$      22,935


$      16,205


Earnings per diluted share, as reported

0.18


0.20


0.28


0.24


0.14


0.38


0.25


     Adjusted Earnings per Diluted Share 

0.29


0.26


0.31


0.29


0.24


0.55


0.44


Average shares outstanding (000)

43,556


39,499


38,252


38,170


38,142


41,543


36,797

















Revenue

$      54,644


$      48,070


$      47,354


$      47,437


$      43,651


$    102,714


$      82,592


Total Adjustments to Revenue

(21)


0


(7)


(225)


(47)


(21)


(600)


     Adjusted Revenue

54,623


48,070


47,347


47,212


43,604


102,693


81,992

















Noninterest Expense

41,625


34,746


30,297


33,435


34,808


76,371


67,149


Total Adjustments to Noninterest Expense

7,796


3,824


1,443


3,321


6,403


11,620


11,884


     Adjusted Noninterest Expense

33,829


30,922


28,854


30,114


28,405


64,751


55,265

















Adjusted Noninterest Expense

33,829


30,922


28,854


30,114


28,405


64,751


55,265


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

297


(293)


(78)


124


(41)


4


(3)


Net Adjusted Noninterest Expense

33,532


31,215


28,932


29,990


28,446


64,747


55,268

















Adjusted Revenue

54,623


48,070


47,347


47,212


43,604


102,693


81,992


Impact of FTE adjustment

164


211


204


287


308


375


435


Adjusted Revenue on a fully taxable equivalent basis

54,787


48,281


47,551


47,499


43,912


103,068


82,427


     Adjusted Efficiency Ratio

61.20

%

64.65

%

60.84

%

63.14

%

64.78

%

62.82


67.05

%
















Average Assets

$ 5,082,002


$ 4,699,745


$ 4,572,188


$ 4,420,438


$ 4,206,800


$ 4,891,929


$ 3,904,091


Less average goodwill and intangible assets

(114,563)


(78,878)


(79,620)


(80,068)


(69,449)


(96,819)


(53,228)


Average Tangible Assets

4,967,439


4,620,867


4,492,568


4,340,370


4,137,351


4,795,110


3,850,863

















Return on Average Assets (ROA)

0.61

%

0.68

%

0.94

%

0.82

%

0.51

%

0.64

%

0.48

%

Impact of removing average intangible assets and related amortization 

0.05


0.06


0.06


0.06


0.05


0.06


0.04


    Return on Tangible Average Assets (ROTA)

0.66


0.74


1.00


0.88


0.56


0.70


0.52


Impact of other adjustments for Adjusted Net Income 

0.36


0.16


0.05


0.13


0.33


0.26


0.33


    Adjusted Return on Average Tangible Assets

1.02


0.90


1.05


1.01


0.89


0.96


0.85

















Average Shareholders' Equity

$    567,448


$    466,847


$    437,077


$    430,410


$    416,748


$    517,425


$    393,782


Less average goodwill and intangible assets

(114,563)


(78,878)


(79,620)


(80,068)


(69,449)


(96,819)


(53,228)


Average Tangible Equity

452,885


387,969


357,457


350,342


347,299


420,606


340,554

















Return on Average Shareholders' Equity 

5.4

%

6.9

%

9.8

%

8.4

%

5.1

%

6.1

%

4.7

%

Impact of removing average intangible assets and related amortization 

1.9


1.9


2.7


2.5


1.5


1.8


1.2


    Return on Average Tangible Common Equity (ROTCE)

7.3


8.8


12.5


10.9


6.6


7.9


5.9


Impact of other adjustments for Adjusted Net Income 

3.9


1.9


0.6


1.7


4.0


3.1


3.7


    Adjusted Return on Average Tangible Common Equity 

11.2


10.7


13.1


12.6


10.6


11.0


9.6


 

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SOURCE Seacoast Banking Corporation of Florida