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Press Release

Seacoast Reports Third Quarter 2017 Results

Net Income Increased 85% Quarter-Over-Quarter to $14.2 Million; Net Revenue Increased 5% to $57.2 Million

Record Quarter for Commercial Originations; Loan Pipeline Near Record Level Entering Q4

Company Release - 10/26/2017 4:02 PM ET

STUART, Fla., Oct. 26, 2017 /PRNewswire/ -- Seacoast Banking Corporation of Florida ("Seacoast" or "the Company") (NASDAQ: SBCF) today reported net income of $14.2 million for the third quarter of 2017, a 56% or $5.1 million increase from the third quarter of 2016. Year to date net income as of September 30, 2017 was $29.8 million, a 62% or $11.4 million increase compared to the prior year period. The Company reported third quarter adjusted net income1 of $15.1 million, representing a 37% or $4.1 million increase from the third quarter of 2016. Year to date adjusted net income1 was $38.1 million, a 40% or $10.8 million increase compared to prior year to date results.

For the third quarter 2017, return on average tangible assets was 1.12%, return on average tangible shareholders' equity was 12.4%, and the efficiency ratio was 58.9%, compared to 0.88%, 10.9%, and 68.6%, respectively, in the third quarter of 2016.  Adjusted return on average tangible assets1 was 1.16%, adjusted return on average tangible shareholders' equity1 was 12.8%, and the adjusted efficiency ratio1 was 57.7%, compared to 1.01%, 12.6%, and 63.1%, respectively, in the third quarter of 2016. 

Dennis S. Hudson, III, Seacoast's Chairman and CEO, said "Our record third quarter results show the investments we have made over the past two years to modernize our banking platform and how we serve customers are resonating. We are successfully transforming Seacoast into an integrated financial services provider that is providing better experiences for our customers and creating value for our shareholders."

"We continue to execute our balanced growth strategy, expanding loans and households organically; maintaining portfolio granularity, to manage risk; and completing disciplined, accretive acquisitions. On October 20, we completed the acquisition and integration of NorthStar Bank, bolstering our presence in the attractive Tampa market, and expect to close and integrate Palm Beach Community Bank next month, expanding our presence into South Florida. Both transactions are on track to perform as we expected at announcement."

Charles M. Shaffer, Seacoast's Chief Financial Officer and Head of Strategy, said "At our investor day in early 2017, we laid out a vision for 2020 that showed significant improvement in Seacoast's return on assets, return on tangible common equity and efficiency.  This quarter's performance demonstrates that we are on track to achieve these goals. Seacoast continues to show strong momentum in top line revenue, while continuing to create operating leverage using the data analytics and the digital tool set we built over the past three years." 

Guidance 

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

Impact of Hurricane Irma on Third Quarter 2017 Results

In early September, the State of Florida was preparing for the potential impact of dangerous category 5 Hurricane Irma.  This caused a full two weeks of business interruption as a week was spent on preparation and a week on recovery.  Ultimately, the storm made landfall in the Florida Keys as a category 4 storm and a second landfall in Marco Island in southwest Florida.

The impact of Hurricane Irma on the quarter was approximately $0.01 per share.  Revenue was impacted in the form of waived service charges, slower activity in wealth management, and delayed closings on loans.  Direct expenses totaled $0.4 million, comprised of compensation for staff working throughout the storm to ensure our customers had digital and web access at all times, remote support from our backup site in Nashville, Tennessee, and recovery expenses to bring our branch network back on-line.  These direct incremental expenses were removed from the presentation of adjusted results.

In the days following the storm, we conducted site visits and inquiries with commercial customers throughout our markets to help assess potential recovery needs.  We had direct conversations with commercial customers covering 69% of the commercial portfolio, and expect any credit-related impacts to be nominal.

Our branches and operations facilities suffered no meaningful damage.

Third Quarter 2017 Financial Highlights

Income Statement

  • Net income was $14.2 million, or $0.32 per average common diluted share, compared to $7.7 million or $0.18 for the prior quarter and $9.1 million or $0.24 for the third quarter of 2016. For the nine months ended September 30, 2017, net income was $29.8 million compared to $18.4 million for the nine months ended September 30, 2016. Adjusted net income1 was $15.1 million, or $0.35 per average common diluted share, compared to $12.7 million or $0.29 for the prior quarter and $11.1 million or $0.29 for the third quarter of 2016. For the nine months ended September 30, 2017, adjusted net income1 was $38.1 million compared to $27.3 million for the nine months ended September 30, 2016.
                                                                             
  • Net revenues were $57.2 million, an increase of $2.5 million or 5% compared to the prior quarter, and an increase of $9.7 million or 21% from the third quarter of 2016. For the nine months ended September 30, 2017, net revenues were $159.9 million, an increase of $29.9 million or 23% compared to the nine months ended September 30, 2016. Adjusted revenues1 were $57.2 million, an increase of $2.6 million, or 5%, from the prior quarter and an increase of $10.0 million, or 21% from the third quarter of 2016. For the nine months ended September 30, 2017, adjusted revenues1 were $159.9 million, an increase of $30.7 million or 24% compared to the nine months ended September 30, 2016.
                                                                             
  • Net interest income totaled $45.7 million, an increase of $1.6 million or 4% from the prior quarter and an increase of $8.3 million or 22% from the third quarter of 2016. For the nine months ended September 30, 2017, net interest income totaled $128.1 million, an increase of $25.9 million or 25% compared to the nine months ended September 30, 2016.
                                                                             
  • Noninterest income totaled $11.4 million, an increase of $0.9 million or 9% compared to the prior quarter and an increase of $1.4 million or 14% from the third quarter of 2016. For the nine months ended September 30, 2017, noninterest income totaled $31.8 million, an increase of $4.0 million or 14% compared to the nine months ended September 30, 2016. Mortgage banking fees increased quarter over quarter, primarily due to a $57.7 million sale of conforming salable mortgages originated in prior quarters, which resulted in $0.8 million in mortgage banking fee income. In addition, late in the third quarter the Company made a $30 million investment in bank owned life insurance at a first-year tax equivalent return of 6.2%.
                                                                             
  • Net interest margin was 3.74% in the current quarter compared to 3.84% in the prior quarter and 3.69% in the third quarter of 2016. The decrease quarter over quarter was the result of lower accretion on both securities and loans when compared to the prior quarter, as well as higher interest expense on deposits and borrowings.
                                                                             
  • The provision for loan losses was $0.7 million compared to $1.4 million in the prior quarter and $0.6 million in the third quarter of 2016, reflecting the effect of sustained positive credit trends and lower net loan growth in the quarter.
                                                                             
  • Noninterest expense was $34.4 million compared to $41.6 million in the prior quarter and $33.4 million in the third quarter of 2016. For the nine months ended September 30, 2017, noninterest expense was $110.7 million compared to $100.6 million for the nine months ended September 30, 2016.
                                                                             
    • Merger related charges and costs related to several branch closures resulted in elevated expenses in the prior quarter totaling $7.0 million, compared to $0.4 million in the current quarter.
    • Adjusted noninterest expense1 was $32.8 million compared to $33.8 million in the prior quarter, and $30.1 million in the third quarter of 2016. For the nine months ended September 30, 2017, adjusted noninterest expense1 was $97.6 million compared to $85.4 million for the nine months ended September 30, 2016.
                                                                               
  • Seacoast recorded a $7.9 million income tax provision in the current quarter, compared to $3.9 million in the prior quarter and $4.3 million in the third quarter of 2016. Tax benefits in excess of stock-based compensation were $137 thousand in the current quarter, compared to $331 thousand in the prior quarter.
                                                                             
  • Third quarter 2017 adjusted revenues1 increased 5% compared to prior quarter, while adjusted noninterest expense1 decreased 3%, providing 8% operating leverage.
                                                                             
  • The efficiency ratio was 58.9% compared to 73.9% in the prior quarter and 68.6% in the third quarter of 2016. The adjusted efficiency ratio1 decreased to 57.7% compared to 61.2% in the prior quarter and 63.1% in the third quarter of 2016.

Balance Sheet

  • At September 30, 2017, the Company had total assets of $5.3 billion and total shareholders' equity of $594.4 million. Book value per share was $13.67 and tangible book value per share was $10.95, compared to $13.29 and $10.55, respectively, at June 30, 2017.
                                                                                          
  • Loan production was robust across all categories, despite the disruption of Hurricane Irma. Net loans totaled $3.4 billion at September 30, 2017, an increase of $54.7 million or 2% compared to June 30, 2017, and an increase of $612 million or 22% from September 30, 2016. Excluding acquisitions, loans increased $365 million or 13% from the third quarter of 2016.
    • Commercial originations reached a new record high of $146 million, up 34% compared to prior year quarter.
    • Consumer and small business originations were $86.9 million during the current quarter.
    • We continue to prudently manage CRE exposure. At 50% and 207% 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 $74 million.
                                                                                            
  • Pipelines (loans in underwriting and approval or approved and not yet closed) were $155 million in commercial, $64 million in mortgage, and $47 million in consumer and small business.
    • Commercial pipelines increased $9.0 million, or 6%, over prior quarter and $36.0 million, or 30%, over year-ago levels.
    • Mortgage pipelines were lower by $7.7 million, or 11%, from prior quarter and by $15.4 million, or 19%, compared to year-ago levels.
    • Consumer and small business decreased from prior quarter by $2.7 million, or 5%, and were higher than year-ago levels by $5.6 million, or 13%.
                                                                                            
  • Total deposits were $4.1 billion as of September 30, 2017, an increase of $137 million, or 3%, compared to prior quarter and an increase of $602 million, or 17%, from the third quarter of 2016.
    • Since September 30, 2016, interest bearing deposits (interest bearing demand, savings and money markets deposits) increased $209 million, or 11%, to $2.2 billion, noninterest bearing demand deposits increased $116 million, or 10%, to $1.2 billion, and CDs increased $277 million, or 76%, to $643 million.
    • Excluding acquired deposits, noninterest bearing deposits increased 4% and total deposits increased 1% compared to September 30, 2016.
    • The Company's balance sheet continues to be primarily core deposit funded. Core customer funding was $3.6 billion at September 30, 2017, flat compared to June 30, 2017 and an increase of 9% compared to September 30, 2016.
    • Overall cost of deposits in the current quarter is 0.22%, reflecting the significant value of the deposit franchise.
                                                                                            
  • Third quarter return on average assets (ROA) was 1.06%, compared to 0.61% in the prior quarter and 0.82% from the third quarter of 2016. Return on average tangible assets (ROTA) was 1.12%, compared to 0.66% in the prior quarter and 0.88% in the third quarter of 2016. Adjusted ROTA1 was 1.16% compared to 1.02% in the prior quarter and 1.01% in the third quarter of 2016.

Capital

  • The common equity tier 1 capital ratio (CET1) was 12.4%, total capital ratio was 14.8% and the tier 1 leverage ratio was 10.2% at September 30, 2017.
  • Tangible common equity to tangible assets was 9.1% at September 30, 2017, compared to 8.9% in the prior quarter, and 8.0% one year prior.

Asset Quality

  • Nonperforming loans to total loans outstanding at September 30, 2017 decreased to 0.42% from 0.52% at June 30, 2017 and from 0.67% as of September 30, 2016.
  • Nonperforming assets to total assets declined to 0.40% at September 30, 2017 from 0.49% at June 30, 2017 and 0.69% one year ago. Of the $21.5 million in nonperforming assets, $4 million relates to five closed branch properties held as REO.
  • The ratio of allowance for loan losses to total loans was 0.77% at September 30, 2017, 0.78% at June 30, 2017, and 0.82% at September 30, 2016. The ratio of allowance for loan losses to non-acquisition related loans was 0.91% at September 30, 2017, 0.95% at June 30, 2017, and 0.98% at September 30, 2016. The decline in coverage in the non-acquired loan ALLL was the result of improved credit quality and loan mix as well as another quarter of nominal losses in this portfolio. Additionally, commercial and commercial real estate concentration risk continues to decline as we continue to maintain a well-diversified and granular portfolio.

 

 

 

FINANCIAL HIGHLIGHTS






(Dollars in thousands, except per share data)

3Q17

2Q17

1Q17

4Q16

3Q16









Selected Balance Sheet Data (at period end):







     Total Assets


$5,340,299

$5,281,295

$4,769,775

$4,680,932

$4,513,934

     Gross Loans



3,384,991

3,330,075

2,973,759

2,879,536

2,769,338

     Total Deposits



4,112,600

3,975,458

3,678,645

3,523,245

3,510,493









Performance Measures:








     Net Income


$14,216

$7,676

$7,926

$10,771

$9,133

     Net Interest Margin


3.74%

3.84%

3.63%

3.56%

3.69%

     Average Diluted Shares Outstanding (000)

43,792

43,556

39,499

38,252

38,170

     Diluted Earnings Per Share (EPS)

$0.32

$0.18

$0.20

$0.28

$0.24

Return on (annualized):








     Average Assets (ROA)

1.06%

0.61%

0.68%

0.94%

0.82%

     Average Tangible Common Equity   (ROTCE)

12.4

7.3

8.8

12.5

10.9

Efficiency Ratio


58.9

73.9

71.1

62.4

68.6









Adjusted Operating Measures 1:








     Adjusted Net Income

$15,145

$12,665

$10,270

$11,803

$11,061

     Adjusted Diluted EPS


0.35

0.29

0.26

0.31

0.29

     Adjusted ROTA


1.16%

1.02%

0.90%

1.05%

1.01%

     Adjusted ROTCE


12.8

11.2

10.7

13.1

12.6

     Adjusted Efficiency Ratio

57.7

61.2

64.7

60.8

63.1

     Adjusted Noninterest Expenses as a Percentage of Average Tangible Assets


2.50

2.73

2.71

2.56

2.76








Other Data







     Market Capitalization


$1,039,506

$1,047,361

$976,368

$838,762

$611,824

     Full Time Equivalent Employees


762

759

743

725

731

     Number of ATMs


74

76

76

77

80

 

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.

Third Quarter and Year-to-Date 2017 Strategic Highlights  

Modernizing How We Sell

  • In late September, we received OCC approval to acquire both NorthStar Bank and Palm Beach Community Bank. The acquisition of NorthStar Bank, headquartered in Tampa, Florida, will deepen our presence in the Tampa market and build upon our acquisition of GulfShore Bank completed in April 2017. The acquisition of Palm Beach Community Bank will expand our presence in the South Florida market and build upon our acquisition of Grand Bankshares Inc., completed in July 2015. NorthStar Bank closed on October 20th, 2017, and Palm Beach Community Bank is expected to close in the fourth quarter of this year. Both acquisitions are on track to perform as expected at announcement.
  • The proportion of deposit accounts opened outside of our banking centers this quarter continues to increase, with 13.3% of all deposit accounts this quarter opened through our website or 24/7 customer support center.
  • We have made significant progress in modernizing our retail and small business sales strategy, focusing on enhancing customer lifetime value. We also began development on a commercial analytics portal that will connect our commercial bankers with the analytics and insights that we have provided our retail and small business teams. This portal will provide daily insight into customer behaviors, emerging customer needs, and suggested opportunities to enhance relationship value.
  • We also kicked off a project to improve our loan origination process this quarter. This effort will extend well into 2018. Using technology, partners, and lean process improvement we'll improve cycle times and strengthen the customer experience.

Lowering Our Cost to Serve

  • Mobile penetration increased during the quarter to more than 32% of eligible primary consumer checking customers from 29.5% in September of last year.
  • A new record 40% of checks are now deposited outside the banking center network, compared to 35% in September of last year.
  • In the first half of 2017, we consolidated five banking center locations. Looking forward into 2018, we expect to continue making progress towards our previously announced goal of reducing our branch footprint by 20% over a 24 to 36-month period.
  • Customer adoption of more convenient digital channels continues to grow. In September 2017, our non-teller transactions made up 52% of our total transaction volume, up from 43% 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

  • Hurricane Irma tested our disaster recovery plans. Before the storm, we dispatched a team of operations and IT associates to our recovery site to Nashville, Tennessee. This enabled us to continue to operate the bank during and immediately following the storm to ensure our customers had digital and web access at all times. Our back-up customer support center provided uninterrupted, 24/7 customer service.
  • We recognized our first full quarter of savings 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 August we announced the consolidation of our customer support center in Stuart. In the fourth quarter we'll be migrating all customer support operations to our Orlando location which we launched early this year. The new, expanded site supports our 24/7 customer service model and our growth strategy.

Scaling and Evolving Our Culture

  • This quarter we on-boarded key talent in the areas of digital marketing and compliance. These important additions to the Seacoast team help position us for future growth.
  • We completed our annual United Way campaign in alignment with our Promise #4: to invest in you and your community, breaking records three years in a row for participation and funds raised to support our communities. We also participated in the American Cancer Society "Making Strides Against Breast Cancer" walk across all of our markets.

OTHER INFORMATION

Conference Call Information 
Seacoast will host a conference call on Friday, October 27, 2017 at 10:00 a.m. (Eastern Time) to discuss the earnings results.  Investors may call in (toll-free) by dialing (888) 517-2513 (passcode: 8290 746). Slides will be used during the conference call and may be accessed at Seacoast's website at SeacoastBanking.com by selecting "Presentations" under the heading "Investor Services."  A replay of the call will be available for one month, beginning late afternoon of October 27, by dialing (888) 843-7419 and using passcode: 8290 746.

Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast's website at SeacoastBanking.com. The link is located in the subsection "Presentations" under the heading "Investor Services." Beginning the afternoon of October 27, an archived version of the webcast can be accessed from this same subsection of the website.  The archived webcast will be available for one year.   

About Seacoast Banking Corporation of Florida (NASDAQ: SBCF) 
Seacoast Banking Corporation of Florida is one of the largest community banks headquartered in Florida with approximately $5.3 billion in assets and $4.1 billion in deposits as of September 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


Nine Months Ended



September 30,


June 30,


March 31,


December 31,


September 30,


September 30,


September 30,



2017


2017


2017


2016


2016


2017


2016


Summary of Earnings















Net income

$          14,216


$          7,676


$          7,926


$        10,771


$          9,133


$        29,818


$        18,431


Net interest income  (1)

45,903


44,320


38,377


37,628


37,735


128,600


102,885


Net interest margin  (1), (2)

3.74

%

3.84

%

3.63

%

3.56

%

3.69

%

3.74

%

3.67

%
















Performance Ratios















Return on average assets-GAAP basis (2)

1.06

%

0.61

%

0.68

%

0.94

%

0.82

%

0.79

%

0.60

%

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

1.12


0.66


0.74


1.00


0.88


0.85


0.65


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

1.16


1.02


0.90


1.05


1.01


1.03


0.91

















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

9.59


5.43


6.89


9.80


8.44


7.37


6.06


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

12.45


7.25


8.77


12.51


10.91


9.57


7.61


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

12.80


11.22


10.74


13.14


12.56


11.65


10.59


Efficiency ratio (4)

58.93


73.90


71.08


62.36


68.60


67.70


75.69


Adjusted efficiency ratio (5)

57.69


61.20


64.65


60.84


63.14


60.98


65.62


Noninterest income to total revenue

20.06


19.16


20.61


20.96


20.68


19.92


21.21


Average equity to average assets

11.06


11.17


9.93


9.56


9.74


10.75


9.96

















Per Share Data















Net income diluted-GAAP basis

$              0.32


$             0.18


$             0.20


$             0.28


$             0.24


$             0.70


$             0.49


Net income basic-GAAP basis

0.33


0.18


0.20


0.29


0.24


0.72


0.50


Adjusted earnings (5)

0.35


0.29


0.26


0.31


0.29


0.90


0.73

















Book value per share common

13.66


13.29


12.34


11.45


11.45


13.66


11.45


Tangible book value per share

10.95


10.55


10.41


9.37


9.35


10.95


9.35


Cash dividends declared

0.00


0.00


0.00


0.00


0.00


0.00


0.00

















Other Data















Market capitalization (6)

1,039,506


1,047,361


976,368


838,762


611,824


1,039,506


611,824


Full-time equivalent employees

762


759


743


725


731


762


731


Number of ATMs

74


76


76


77


80


74


80


Full service banking offices

45


45


46


47


47


45


47


Registered online users

78,880


75,394


71,385


67,243


66,115


78,880


66,115


Registered mobile devices

58,032


55,013


50,729


47,131


44,128


58,032


44,128
































(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 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 gains, losses, and expenses on foreclosed properties) 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


September 30,


September 30,

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

Third


Second


First


Fourth


Third


2017


2016















Interest on securities:














     Taxable

$          8,823


$          8,379


$          8,087


$          6,880


$          6,966


$        25,289


$        19,253

     Nontaxable

189


206


287


287


287


682


749

Interest and fees on loans

40,403


38,209


31,891


32,007


31,932


110,503


87,210

Interest on federal funds sold and other investments

664


604


510


517


429


1,778


1,152

         Total Interest Income

50,079


47,398


40,775


39,691


39,614


138,252


108,364















Interest on deposits

930


854


624


622


679


2,408


1,971

Interest on time certificates

1,266


814


566


598


613


2,646


1,476

Interest on borrowed money

2,134


1,574


1,420


1,046


874


5,128


2,754

         Total Interest Expense

4,330


3,242


2,610


2,266


2,166


10,182


6,201















         Net Interest Income

45,749


44,156


38,165


37,425


37,448


128,070


102,163

Provision for loan losses

680


1,401


1,304


1,000


550


3,385


1,411

         Net Interest Income After Provision for Loan Losses

45,069


42,755


36,861


36,425


36,898


124,685


100,752















Noninterest income:














     Service charges on deposit accounts

2,626


2,435


2,422


2,612


2,698


7,483


7,057

     Trust fees

967


917


880


969


820


2,764


2,464

     Mortgage banking fees

2,138


1,272


1,552


1,616


1,885


4,962


4,248

     Brokerage commissions and fees

351


351


377


480


463


1,079


1,564

     Marine finance fees

137


326


134


115


138


597


558

     Interchange income

2,582


2,671


2,494


2,334


2,306


7,747


6,893

     Other deposit based EFT fees

100


114


140


125


109


354


352

     BOLI income

836


757


733


611


382


2,326


1,602

     Other

1,744


1,624


1,173


1,060


963


4,541


2,767


11,481


10,467


9,905


9,922


9,764


31,853


27,505

     Securities gains/(losses), net

(47)


21


0


7


225


(26)


361

         Total Noninterest Income

11,434


10,488


9,905


9,929


9,989


31,827


27,866















Noninterest expenses:














     Salaries and wages

15,627


18,375


15,369


12,476


14,337


49,371


41,620

     Employee benefits

2,917


2,935


3,068


2,475


2,425


8,920


7,428

     Outsourced data processing costs

3,231


3,456


3,269


3,076


3,198


9,956


10,440

     Telephone / data lines

573


648


532


502


539


1,753


1,606

     Occupancy 

2,447


4,421


3,157


2,830


3,675


10,025


10,292

     Furniture and equipment 

1,191


1,679


1,391


1,211


1,228


4,261


3,509

     Marketing 

1,298


1,074


922


847


780


3,294


2,786

     Legal and professional fees

2,560


3,276


2,132


2,370


2,213


7,968


7,226

     FDIC assessments

548


650


570


661


517


1,768


1,704

     Amortization of intangibles

839


839


719


719


728


2,397


1,767

     Asset dispositions expense

117


136


53


84


219


306


469

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

(414)


161


(346)


(161)


(96)


(599)


(348)

     Early redemption cost for Federal Home Loan Bank advances

0


0


0


0


0


0


1,777

     Other 

3,427


3,975


3,910


3,207


3,672


11,312


10,308

         Total Noninterest Expenses

34,361


41,625


34,746


30,297


33,435


110,732


100,584















         Income Before Income Taxes

22,142


11,618


12,020


16,057


13,452


45,780


28,034

Income taxes

7,926


3,942


4,094


5,286


4,319


15,962


9,603















         Net Income

$        14,216


$          7,676


$          7,926


$        10,771


$          9,133


$        29,818


$        18,431















Per share of common stock:




























     Net income diluted

$             0.32


$             0.18


$             0.20


$             0.28


$             0.24


$             0.70


$             0.49

     Net income basic

0.33


0.18


0.20


0.29


0.24


0.72


0.50

     Cash dividends declared

0.00


0.00


0.00


0.00


0.00


0.00


0.00















Average diluted shares outstanding

43,792,108


43,556,285


39,498,835


38,252,351


38,169,863


42,298,136


37,258,133

Average basic shares outstanding

43,151,248


42,841,152


38,839,284


37,603,789


37,549,804


41,626,356


36,626,290















 

 

CONDENSED CONSOLIDATED BALANCE SHEETS          




(Unaudited)







SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES























September 30,


June 30,


March 31,


December 31,


September 30,

(Dollars in thousands, except share data)


2017


2017


2017


2016


2016












Assets











   Cash and due from banks


$       114,621


$        88,133


133,923


$        82,520


$        89,777

   Interest bearing deposits with other banks


10,657


20,064


10,914


27,124


77,606

            Total Cash and Cash Equivalents


125,278


108,197


144,837


109,644


167,383












   Time deposits with other banks


14,591


16,426


0


0


0












   Securities:











        Available for sale (at fair value)


996,799


1,016,744


909,275


950,503


866,613

        Held to maturity (at amortized cost)


374,773


397,096


379,657


372,498


392,138

            Total Securities 


1,371,572


1,413,840


1,288,932


1,323,001


1,258,751












   Loans held for sale


29,447


22,262


16,326


15,332


20,143












   Loans


3,384,991


3,330,075


2,973,759


2,879,536


2,769,338

   Less: Allowance for loan losses


(26,232)


(26,000)


(24,562)


(23,400)


(22,684)

            Net Loans


3,358,759


3,304,075


2,949,197


2,856,136


2,746,654












   Bank premises and equipment, net


57,092


56,765


58,611


58,684


59,035

   Other real estate owned


7,142


8,497


7,885


9,949


12,734

   Goodwill


101,747


101,739


64,649


64,649


64,649

   Other intangible assets, net


16,102


16,941


13,853


14,572


15,291

   Bank owned life insurance


118,762


88,003


85,237


84,580


44,044

   Net deferred tax assets


43,951


52,195


55,834


60,818


58,848

   Other assets


95,856


92,355


84,414


83,567


66,402

          Total Assets


$    5,340,299


$   5,281,295


$   4,769,775


$   4,680,932


$   4,513,934












Liabilities and Shareholders' Equity











Liabilities











   Deposits











        Noninterest demand


$    1,284,118


$   1,308,458


$   1,225,124


$   1,148,309


$   1,168,542

        Interest-bearing demand


935,097


934,861


870,457


873,727


776,480

        Savings


379,499


376,825


363,140


346,662


340,899

        Money market


870,788


861,119


821,606


802,697


858,931

        Other time certificates


155,027


155,265


153,840


159,887


166,987

        Brokered time certificates


281,551


149,270


66,741


7,342


8,218

        Time certificates of $100,000 or more


206,520


189,660


177,737


184,621


190,436

            Total Deposits


4,112,600


3,975,458


3,678,645


3,523,245


3,510,493












   Securities sold under agreements to repurchase


142,153


167,558


183,107


204,202


167,693

   Federal Home Loan Bank borrowings


389,000


395,000


302,000


415,000


305,000

   Subordinated debt


70,451


70,381


70,311


70,241


70,171

   Other liabilities


31,654


95,521


33,218


32,847


25,058

          Total Liabilities


4,745,858


4,703,918


4,267,281


4,245,535


4,078,415












Shareholders' Equity











   Common stock


4,351


4,339


4,075


3,802


3,799

   Additional paid in capital


576,825


574,842


510,806


454,001


453,007

   Accumulated earnings/(deficit)


16,161


1,945


(5,731)


(13,657)


(24,427)

   Treasury stock


(1,730)


(1,768)


(1,172)


(1,236)


(691)



595,607


579,358


507,978


442,910


431,688

   Accumulated other comprehensive income/(loss), net


(1,166)


(1,981)


(5,484)


(7,513)


3,831

          Total Shareholders' Equity


594,441


577,377


502,494


435,397


435,519

          Total Liabilities & Shareholders' Equity


$    5,340,299


$   5,281,295


$   4,769,775


$   4,680,932


$   4,513,934












Common Shares Outstanding


43,512,179


43,458,973


40,715,938


38,021,835


38,025,020












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)

Third


Second


First


Fourth


Third













Credit Analysis 











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

$              612


$              304


$              211


$                87


$         (1,411)


   Net charge-offs (recoveries) - acquired loans

(333)


(405)


(118)


141


(81)


   Total net charge-offs (recoveries)

$              279


$            (101)


$                93


$              228


$         (1,492)













   TDR valuation adjustments

$              169


$                64


$                49


$                55


$                83













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

0.07

%

0.04

%

0.03

%

0.01

%

(0.21)

%

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

(0.04)


(0.05)


(0.02)


0.02


(0.01)


   Total net charge-offs (recoveries) to average loans

0.03


(0.01)


0.01


0.03


(0.22)













   Loan loss provision (recapture) - non-acquired loans

$              795


$          1,690


$          1,504


$          1,161


$              649


   Loan loss provision (recapture) - acquired loans

(115)


(289)


(200)


(161)


(99)


   Total loan loss provision 

$              680


$          1,401


$          1,304


$          1,000


$              550













   Allowance for loan losses - non-acquired loans

$        25,822


$        25,809


$        24,487


$        23,243


$        22,225


   Allowance for loan losses - acquired loans

410


191


75


157


459


   Total allowance for loan losses

$        26,232


$        26,000


$        24,562


$        23,400


$        22,684













   Non-acquired loans at end of period 

$   2,837,490


$   2,722,866


$   2,572,549


$   2,425,850


$   2,272,275


   Purchased noncredit impaired loans at end of period 

537,057


594,077


388,228


440,690


484,006


   Purchased credit impaired loans at end of period

10,443


13,132


12,982


12,996


13,057


   Total loans

$   3,384,990


$   3,330,075


$   2,973,759


$   2,879,536


$   2,769,338













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

0.91

%

0.95

%

0.95

%

0.96

%

0.98

%

   Total allowance for loan losses to total loans at end of period 

0.77


0.78


0.83


0.81


0.82


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

0.07


0.03


0.02


0.03


0.09


   Discount for credit losses to acquired loans at end of period

2.77


3.37


4.25


4.18


4.24













End of Period











   Nonperforming loans - non-acquired loans

$        10,877


$        10,541


$        10,557


$        11,023


$        10,561


   Nonperforming loans - acquired loans

3,498


6,632


6,428


7,048


7,876


   Other real estate owned - non-acquired

1,748


1,748


2,790


3,041


3,681


   Other real estate owned - acquired

1,632


1,645


1,203


1,203


1,468


   Bank branches closed included in other real estate owned

3,762


5,104


3,892


5,705


7,585


   Total nonperforming assets

$        21,517


$        25,670


$        24,870


$        28,020


$        31,171













   Restructured loans (accruing)

$        16,181


$        16,941


$        18,125


$        17,711


$        19,272













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

0.38

%

0.39

%

0.41

%

0.45

%

0.46

%

   Nonperforming loans to loans at end of period - acquired loans

0.64


1.09


1.60


1.55


1.58


   Allowance for loan losses to nonperforming loans - non-acquired loans 

237.40


244.84


231.95


210.86


210.44


   Total nonperforming loans to loans at end of period

0.42


0.52


0.57


0.63


0.67













   Nonperforming assets to total assets - non-acquired

0.31

%

0.33

%

0.36

%

0.42

%

0.48

%

   Nonperforming assets to total assets - acquired

0.10


0.16


0.16


0.18


0.21


   Total nonperforming assets to total assets

0.40


0.49


0.52


0.60


0.69













Average Balances











   Total average assets

$   5,316,119


$   5,082,002


$   4,699,745


$   4,572,188


$   4,420,438


   Less: Intangible assets

118,364


114,563


78,878


79,620


80,068


   Total average tangible assets

$   5,197,755


$   4,967,439


$   4,620,867


$   4,492,568


$   4,340,370













   Total average equity

$      587,919


$      567,448


$      466,847


$      437,077


$      430,410


   Less: Intangible assets

118,364


114,563


78,878


79,620


80,068


   Total average tangible equity

$      469,555


$      452,885


$      387,969


$      357,457


$      350,342














September 30,


June 30,


March 31,


December 31,


September 30,


LOANS

2017


2017


2017


2016


2016













Construction and land development

$      245,151


$      230,574


$      174,992


$      160,116


$      153,901


Commercial real estate

1,478,091


1,464,068


1,354,140


1,357,592


1,293,512


Residential real estate

941,169


991,144


893,674


836,787


833,413


Installment loans to individuals

184,485


178,595


165,039


153,945


145,523


Commercial and financial

535,457


465,138


385,189


370,589


342,502


Other loans

637


556


725


507


489


       Total Loans

$   3,384,990


$   3,330,075


$   2,973,759


$   2,879,536


$   2,769,338



































 

 

CONSOLIDATED QUARTERLY FINANCIAL  DATA






(Unaudited)





SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
























September 30,


June 30, 


March 31, 


 December 31, 


 September 30, 

(Dollars in thousands)


2017


2017


2017


2016


2016













Customer Relationship Funding 











      Noninterest demand












Commercial


$       997,749


$      995,720


$      916,940


$      860,449


$      892,876


Retail


217,809


238,506


234,109


220,134


209,351


Public funds


43,686


47,691


52,126


48,690


42,147


Other


24,874


26,541


21,949


19,036


24,168




1,284,118


1,308,458


1,225,124


1,148,309


1,168,542













      Interest-bearing demand












Commercial


156,176


155,178


117,629


102,320


100,824


Retail


670,705


659,906


613,121


591,808


567,286


Public funds


108,216


119,777


139,707


179,599


108,370




935,097


934,861


870,457


873,727


776,480













      Total transaction accounts












Commercial


1,153,925


1,150,898


1,034,569


962,769


993,700


Retail


888,514


898,412


847,230


811,942


776,637


Public funds


151,902


167,468


191,833


228,289


150,517


Other


24,874


26,541


21,949


19,036


24,168




2,219,215


2,243,319


2,095,581


2,022,036


1,945,022













      Savings


379,499


376,825


363,140


346,662


340,899













      Money market












Commercial


360,567


351,871


313,094


286,879


313,200


Retail


431,325


427,575


414,886


411,696


411,550


Public funds


78,896


81,673


93,626


104,122


134,181




870,788


861,119


821,606


802,697


858,931













      Time certificates of deposit


643,098


494,195


398,318


351,850


365,641

            Total Deposits


$    4,112,600


$   3,975,458


$   3,678,645


$   3,523,245


$   3,510,493













      Customer sweep accounts


$       142,153


$      167,558


$      183,107


$      204,202


$      167,693













      Total core customer funding (1)


$    3,611,655


$   3,648,821


$   3,463,434


$   3,375,597


$   3,312,545

























(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


Third Quarter


Second Quarter


Third Quarter


Average




Yield/


Average




Yield/


Average




Yield/

(Dollars in thousands)

Balance


Interest


Rate


Balance


Interest


Rate


Balance


Interest


Rate

Assets


















Earning assets:


















    Securities:


















         Taxable

$   1,356,276


$    8,823


2.60%


$   1,261,017


$   8,379


2.66%


$   1,264,345


$   6,966


2.20%

         Nontaxable 

26,256


290


4.42


28,092


316


4.50


28,344


441


6.22

                   Total Securities

1,382,532


9,113


2.64


1,289,109


8,695


2.70


1,292,689


7,407


2.29



















    Federal funds sold and other


















         investments

76,773


664


3.43


72,535


604


3.34


55,465


429


3.08



















    Loans, net

3,407,376


40,456


4.71


3,266,812


38,263


4.70


2,720,121


32,065


4.69



















                  Total Earning Assets

4,866,681


50,233


4.10


4,628,456


47,562


4.12


4,068,275


39,901


3.90



















Allowance for loan losses

(26,299)






(25,276)






(21,934)





Cash and due from banks

99,864






99,974






84,592





Premises and equipment

57,023






59,415






62,552





Intangible assets

118,364






114,563






80,068





Bank owned life insurance

95,759






87,514






43,860





Other assets

104,727






117,355






103,025























                  Total Assets

$   5,316,119






$   5,082,002






$   4,420,438























Liabilities and Shareholders' Equity


















Interest-bearing liabilities:


















      Interest-bearing demand

$      927,278


$       273


0.12%


$      949,981


$      262


0.11%


$      781,620


$      151


0.08%

      Savings

377,729


52


0.05


378,989


51


0.05


331,685


41


0.05

      Money market

870,166


605


0.28


868,427


541


0.25


864,228


487


0.22

      Time deposits

548,092


1,266


0.92


432,805


814


0.75


374,852


613


0.65

      Federal funds purchased and 


















        securities sold under agreements to repurchase

165,160


204


0.49


174,715


194


0.45


184,170


118


0.25

      Federal Home Loan Bank borrowings

439,755


1,293


1.17


323,780


780


0.97


223,467


240


0.43

      Other borrowings

70,409


637


3.59


70,343


600


3.42


70,137


516


2.93



















                     Total Interest-Bearing Liabilities

3,398,589


4,330


0.51


3,199,040


3,242


0.41


2,830,159


2,166


0.30



















Noninterest demand

1,276,779






1,283,255






1,131,073





Other liabilities

52,832






32,259






28,796





                     Total Liabilities 

4,728,200






4,514,554






3,990,028























Shareholders' equity

587,919






567,448






430,410























                     Total Liabilities & Equity

$   5,316,119






$   5,082,002






$   4,420,438























Interest expense as a % of earning assets  





0.35%






0.28%






0.21%

Net interest income as a % of earning assets  



$  45,903


3.74%




$ 44,320


3.84%




$ 37,735


3.69%





































(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

$   1,299,128


$       25,289


2.60%


$   1,148,979


$       19,252


2.23%


         Nontaxable 

27,388


1,047


5.10


24,919


1,150


6.16


                   Total Securities

1,326,516


26,336


2.65


1,173,898


20,403


2.32















    Federal funds sold and other













         investments

68,766


1,778


3.46


72,708


1,152


2.12















    Loans, net

3,199,408


110,668


4.62


2,500,613


87,531


4.68















                  Total Earning Assets

4,594,690


138,782


4.04


3,747,219


109,086


3.89















Allowance for loan losses

(25,211)






(20,564)






Cash and due from banks

101,858






86,227






Premises and equipment

58,401






60,927






Intangible assets

104,079






62,240






Bank owned life insurance

89,401






43,684






Other assets

111,661






97,730



















                  Total Assets

$   5,034,879






$   4,077,463



















Liabilities and Shareholders' Equity













Interest-bearing liabilities:













      Interest-bearing demand

$      904,175


$            698


0.10%


$      749,089


$            467


0.08%


      Savings

370,145


147


0.05


319,199


117


0.05


      Money market

847,705


1,563


0.25


781,105


1,387


0.24


      Time deposits

443,416


2,646


0.80


348,601


1,476


0.57


      Federal funds purchased and 













        securities sold under agreements to repurchase

173,601


551


0.42


188,551


374


0.26


      Federal Home Loan Bank borrowings

396,610


2,775


0.94


150,862


864


0.77


      Other borrowings

70,342


1,802


3.43


70,062


1,516


2.89















                     Total Interest-Bearing Liabilities

3,205,994


10,182


0.42


2,607,469


6,201


0.32















Noninterest demand

1,248,290






1,032,475






Other liabilities

39,414






31,439






                     Total Liabilities 

4,493,698






3,671,383



















Shareholders' equity

541,181






406,080



















                     Total Liabilities & Equity

$   5,034,879






$   4,077,463



















Interest expense as a % of earning assets  





0.30%






0.22%


Net interest income as a % of earning assets  



$     128,600


3.74%




$     102,885


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.



















 

 

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)

Third


Second


First


Fourth


Third


September 30,


September 30,


2017


2017


2017


2016


2016


2017


2016



$      14,216


$         7,676


$         7,926


$      10,771


$         9,133


$      29,818


$      18,431


Net income























BOLI income (benefits upon death)

0


0


0


0


0


0


(464)


Security gains

47


(21)


0


(7)


(225)


26


(361)


     Total Adjustments to Revenue

47


(21)


0


(7)


(225)


26


(825)

















Merger related charges

491


5,081


533


561


1,699


6,105


8,467


Amortization of intangibles

839


839


719


719


728


2,397


1,767


Business continuity expenses - Hurricane Irma

352


-


-


-


-


352


-


Branch reductions and other expense initiatives

(127)


1,876


2,572


163


894


4,321


3,194


Early redemption cost for FHLB advances

0


0


0


0


0


0


1,777


     Total Adjustments to Noninterest Expense

1,555


7,796


3,824


1,443


3,321


13,175


15,205

















Effective tax rate on adjustments 

(673)


(2,786)


(1,480)


(404)


(1,168)


(4,939)


(5,545)


     Adjusted Net Income

$      15,145


$      12,665


$      10,270


$      11,803


$      11,061


$      38,080


$      27,266


Earnings per diluted share, as reported

0.32


0.18


0.20


0.28


0.24


0.70


0.49


     Adjusted Earnings per Diluted Share 

0.35


0.29


0.26


0.31


0.29


0.90


0.73


Average shares outstanding (000)

43,792


43,556


39,499


38,252


38,170


42,298


37,258

















Revenue

$      57,183


$      54,644


$      48,070


$      47,354


$      47,437


$    159,897


$    130,029


Total Adjustments to Revenue

47


(21)


0


(7)


(225)


26


(825)


     Adjusted Revenue

57,230


54,623


48,070


47,347


47,212


159,923


129,204

















Noninterest Expense

34,361


41,625


34,746


30,297


33,435


110,732


100,584


Total Adjustments to Noninterest Expense

1,555


7,796


3,824


1,443


3,321


13,175


15,205


     Adjusted Noninterest Expense

32,806


33,829


30,922


28,854


30,114


97,557


85,379

















Adjusted Noninterest Expense

32,806


33,829


30,922


28,854


30,114


97,557


85,379


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

(298)


297


(293)


(78)


124


(294)


121


Net Adjusted Noninterest Expense

33,104


33,532


31,215


28,932


29,990


97,851


85,258

















Adjusted Revenue

57,230


54,623


48,070


47,347


47,212


159,923


129,204


Impact of FTE adjustment

154


164


211


204


287


529


722


Adjusted Revenue on a fully taxable equivalent basis

57,384


54,787


48,281


47,551


47,499


160,452


129,926


     Adjusted Efficiency Ratio

57.7

%

61.2

%

64.7

%

60.8

%

63.1

%

61.0


65.6

%
















Average Assets

$ 5,316,119


$ 5,082,002


$ 4,699,745


$ 4,572,188


$ 4,420,438


$ 5,034,879


$ 4,077,463


Less average goodwill and intangible assets

(118,364)


(114,563)


(78,878)


(79,620)


(80,068)


(104,079)


(62,240)


Average Tangible Assets

5,197,755


4,967,439


4,620,867


4,492,568


4,340,370


4,930,800


4,015,223

















Return on Average Assets (ROA)

1.06

%

0.61

%

0.68

%

0.94

%

0.82

%

0.79

%

0.60

%

Impact of removing average intangible assets and related amortization 

0.06


0.05


0.06


0.06


0.06


0.06


0.05


    Return on Tangible Average Assets (ROTA)

1.12


0.66


0.74


1.00


0.88


0.85


0.65


Impact of other adjustments for Adjusted Net Income 

0.04


0.36


0.16


0.05


0.13


0.18


0.26


    Adjusted Return on Average Tangible Assets

1.16


1.02


0.90


1.05


1.01


1.03


0.91

















Average Shareholders' Equity

$    587,919


$    567,448


$    466,847


$    437,077


$    430,410


$    541,181


$    406,084


Less average goodwill and intangible assets

(118,364)


(114,563)


(78,878)


(79,620)


(80,068)


(104,079)


(62,240)


Average Tangible Equity

469,555


452,885


387,969


357,457


350,342


437,102


343,844

















Return on Average Shareholders' Equity 

9.6

%

5.4

%

6.9

%

9.8

%

8.4

%

7.4

%

6.1

%

Impact of removing average intangible assets and related amortization 

2.8


1.9


1.9


2.7


2.5


2.2


1.5


    Return on Average Tangible Common Equity (ROTCE)

12.4


7.3


8.8


12.5


10.9


9.6


7.6


Impact of other adjustments for Adjusted Net Income 

0.4


3.9