Seacoast Banking Corporation of Florida (SBCF) 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

To Form 8-K dated July 28, 2011

NEWS RELEASE

SEACOAST BANKING CORPORATION OF FLORIDA

Dennis S. Hudson, III
Chairman and Chief Executive Officer
Seacoast Banking Corporation of Florida
(772) 288-6085

William R. Hahl
Executive Vice President &
Chief Financial Officer
(772) 221-2825

SEACOAST REPORTS IMPROVED EARNINGS AND CREDIT QUALITY FOR

SECOND QUARTER 2011

• Earnings increase for second consecutive quarter

• Nonperforming loans declined by 49.2% over the last twelve months, 30.3% for the quarter

• Average low cost deposits (NOW & savings) increased 17.4% annualized during the quarter

• Average demand deposits increased 23.8% annualized during the quarter and were up 18.2% over the prior year

STUART, FL., July 28, 2011 — Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCF), today reported a second quarter 2011 net income of $1.1 million, compared to a net loss of $13.8 million for the second quarter of 2010. For the first six months of 2011 net income totaled $1.5 million compared to a net loss of $15.4 million a year ago. Including preferred stock dividends and accretion of $937,000, the net income applicable to common shareholders was $176,000 or $0.00 per average common diluted share for the second quarter, compared to a net loss of $14.7 million or $0.25 per average common diluted share for the second quarter of 2010.

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Nonperforming loans fell for the seventh consecutive quarter to 3.88 percent of loans outstanding compared with a peak level of 10.23 percent at September 30, 2009 as new problem credit inflows continued to moderate and liquidation activities were accelerated. As previously forecast the Company closed on contracts liquidating $27.5 million of nonperforming loans and $3.5 million of OREO properties during the quarter. Nonperforming assets fell to 3.46 percent of total assets from 5.25 percent a year ago and totaled $72.0 million at June 30, 2011, a dollar level last achieved in December 2007. Nonperforming loans are expected to continue to decline in the second half of 2011.

“Our results in the second quarter were consistent with our expectations for continued earnings improvement during the year”, said Dennis S. Hudson, III, Chairman and Chief Executive Officer. “Revenues continued to grow and included a strong 8.0 percent linked quarter increase in noninterest income as we continued to successfully execute our core growth strategy. Our focus on building new core checking account relationships continued to gain momentum with average noninterest bearing checking balances growing 18.2 percent over the prior year and 23.8 percent (annualized) on a linked quarter basis. Average repurchase agreement funding for the quarter grew by 21.1 percent compared with the prior year reflecting our success in building larger core business and local governmental relationships.”

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Additional highlights include:

• Mortgage banking revenue in the second quarter 2011 was up $45,000 or 9.7 percent compared to second quarter 2010 due to higher volume and spreads;

• Marine finance revenue totaled $349,000 for the quarter, 12.6 percent higher than a year ago;

• Service charges on deposit accounts totaled $1.546 million for the quarter, an increase of 6.5 percent over the same quarter last year;

• Interchange income totaled $995,000 for the quarter, an increase of $173,000 or 21.0 percent compared to second quarter 2010;

• Total noninterest bearing deposits at June 30, 2011 comprised 19.1 percent of total deposits up from 16.1 percent a year ago;

• Checking account household growth was 4.9 percent annualized for the first six months of 2011;

• Regulatory capital ratios improved during the quarter with the total risk based capital ratio increasing to 18.9 percent (estimated) at June 30, 2011, compared with 18.2 percent in the prior quarter; and

• Tangible common equity (TCE) ratio improved to 5.84 percent from 5.60 percent in the prior quarter; a future recapture of the deferred tax asset valuation allowance would add (proforma) approximately 200 basis points to the TCE ratio.

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Net interest income for the quarter totaled $16.5 million, unchanged from the first quarter, and up $324,000 or 2% compared with second quarter 2010. The increase over the prior year’s second quarter net interest income is a result of lower deposit costs and lower rates paid on interest bearing liabilities, and a slightly larger investment portfolio. The net interest margin for the second quarter totaled 3.36 percent, down 12 basis points compared to the first quarter 2011, and 9 basis points higher than the second quarter 2010. In the first quarter of 2011, collection of interest on nonaccrual loans increased, while in the second quarter there was a higher level of interest income reversed related to nonaccrual loans. A stable margin is expected going forward, as a result of lower levels of nonperforming loans. For the first six months of 2011 the margin was 3.42 percent, up six basis points compared with the prior year’s first six months.

The Company recorded a provision for loan losses in the second quarter 2011 of $0.90 million compared to $0.64 million for the first quarter and $16.8 million for the second quarter of 2010. The allowance for loan losses as a percentage of loans was 2.63 percent at June 30, 2011, compared to 2.80 percent for the first quarter this year and 3.10 percent at June 30, 2010. The reduction in the allowance for the quarter is consistent with lower overall risk in the loan portfolio as both the concentration and loan size have been reduced, particularly in the construction and land development portfolios where the majority of prior loan losses occurred. Current quarter net loan charge-offs totaled $4.0 million compared to $20.2 million for the second quarter 2010 and $4.0 million for the first quarter 2011.

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Second quarter 2011 noninterest income was up $338,000 compared to the first quarter and was up $295,000 compared to the second quarter of 2010. Mortgage banking fees were up $114,000 compared to the first quarter of 2011 with revenues of $509,000, up $45,000 compared with second quarter 2010. Service charges on deposits and interchange income were both up when compared to the first quarter 2011 and last year’s second quarter as a result of the increases in new business and retail households. Combined these deposit account related revenues totaled $2.5 million in the second quarter, up $267,000 or 11.7 percent compared with second quarter 2010.

	Q-2		Q-1		Q-4		Q-3		Q-2
(dollars in thousands)	2011		2011		2010		2010		2010
Noninterest Income:
Service charges on deposit accounts	$	1,546	$	1,442	$	1,590	$	1,511	$	1,452
Trust income		517		523		510		500		491
Mortgage banking fees		509		395		580		654		464
Brokerage commissions and fees		223		320		325		306		257
Marine finance fees		349		298		355		330		310
Interchange income		995		891		814		810		822
Other deposit based EFT fees		79		90		75		71		82
Other		329		250		338		350		374
Total		4,547		4,209		4,587		4,532		4,252
Gain on sale of merchant business		0		0		600		0		0
Total	$	4,547	$	4,209	$	5,187	$	4,532	$	4,252

Core operating expenses declined by $642,000 for the quarter and were lower by $966,000 over the prior year. Expenses associated with other real estate owned and asset dispositions were stable compared to the reduced level of the first quarter, but higher by $1.2 million compared with the prior year second quarter. Salaries, wages and benefits for the second quarter 2011 declined $224,000 or 2.7 percent from a year ago, and were $313,000 lower for the first six months compared to the same period in 2010.FDIC assessments were lower by $271,000 for the second quarter compared with first quarter and were down by $351,000 compared to last year’s assessments implemented during the quarter.

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	Q-2		Q-1		Q-4		Q-3		Q-2
(dollars in thousands)	2011		2011		2010		2010		2010
Noninterest Expense:
Salaries and wages	$	6,534	$	6,551	$	6,539	$	6,631	$	6,776
Employee benefits		1,437		1,600		1,153		1,367		1,419
Outsourced data processing costs		1,699		1,522		1,496		1,503		1,503
Telephone / data lines		319		289		321		383		402
Occupancy expense		1,919		1,946		1,699		1,928		1,911
Furniture and equipment expense		618		593		609		595		585
Marketing expense		667		752		764		577		913
Legal and professional fees		1,585		1,757		1,783		2,491		1,602
FDIC assessments		688		959		947		966		1,039
Amortization of intangibles		212		212		212		212		246
Other		1,812		1,951		2,330		1,886		2,060
Total Core Operating Expense		17,490		18,132		17,853		18,539		18,456
Net loss on OREO and repossessed assets		441		449		8,763		849		105
Asset dispositions expense		1,142		1,086		1,122		587		310
Total	$	19,073	$	19,667	$	27,738	$	19,975	$	18,871

The Company’s residential lending group has produced solid, quality mortgage loan growth in 2011. A total of 272 applications were accepted in the second quarter 2011 for total loans of $59.7 million, and 630 applications were taken in the first six months for $139.5 million. Closed mortgage loans totaled $50 million for the quarter, up $18 million compared with the first quarter 2011. A total of $19 million in residential mortgage loans were sold in the second quarter of 2011. Over the first six months of 2011, a total of $32 million in residential mortgage loans were sold, and $50 million were added to the portfolio.

The Company’s retail and business core deposit focus has produced strong growth in core deposit customer relationships and has resulted in increased balances and improved deposit mix. The improved deposit mix and lower rates paid on interest bearing deposits during the second quarter reduced the overall cost of total deposits to 0.70 percent, 2 basis points lower than in the first quarter 2011 and 24 basis points lower than the second quarter 2010.

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Average total deposits for the second quarter ended June 30, 2011 were up $41 million or 9.9 percent annualized compared to March 31, 2011, and ending deposits were nearly unchanged compared to first quarter at $1.681 million. Compared to the prior year, average total deposits were lower by $34 million due to a planned deposit runoff of customers with single-service certificates of deposit and brokered certificates as they matured. The mix of deposits improved with low cost average interest bearing NOW and savings deposits increasing $25 million or 12.6 percent annualized, and average demand deposits increasing $19 million or 23.8 percent annualized compared to the first quarter 2011. Average demand deposits increased $50.9 million or 18.2 percent compared with second quarter a year ago. The average cost of interest bearing core deposits (NOW, savings and MMDA) during the second quarter was 0.31 percent, down 25 basis points from the second quarter of 2010. Interest rates paid on certificate of deposit rates were also lower compared to the second quarter last year and totaled 1.74 percent during the second quarter 2011, a decline of 25 basis points. The average cost of total interest bearing liabilities was 0.95 percent, down 3 basis points compared to the first quarter 2011 and 22 basis points lower than the second quarter of 2010.

As previously reported, the Company has experienced strong growth in core deposit customer relationships since implementing its core growth strategy. A total of 7,645 new households started banking with Seacoast over the past year, up 23.8 percent over the same period one year earlier. These new households have opened 8,035 new checking accounts, an increase of 35.3 percent over the number of new accounts opened during the prior twelve months. These new relationships have also increased average services and average balances per household.

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Seacoast will host a conference call on Friday, July 29, 2011 at 9:00 a.m. (Eastern Time) to discuss the earnings results and business trends. Investors may call in (toll-free) by dialing (888) 517-2464 (passcode: 5785075; host: Dennis S. Hudson). Charts will be used during the conference call and may be accessed at Seacoast’s website atwww.seacoastbanking.net by selecting “Presentations” under the heading “Investor Services”. A replay of the call will be available for one month, beginning the afternoon of July 29, by dialing (888) 843-7419 (domestic), using the passcode 5785075.

Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast’s website atwww.seacoastbanking.net. The link is located in the subsection “Presentations” under the heading “Investor Services”. Beginning the afternoon of July 29, 2011, 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.

Seacoast, with approximately $2.1 billion in assets, is one of the largest independent commercial banking organizations in Florida. Seacoast has 39 offices in South and Central Florida and is headquartered on Florida’s Treasure Coast, which is one of the wealthiest areas in the nation.

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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, ability to realized deferred tax assets, 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, 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.

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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, 2010 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 athttp://www.sec.gov.

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FINANCIAL HIGHLIGHTS(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	Three Months Ended						Six Months Ended
(Dollars in thousands,	June 30,						June 30,
except share data)	2011			2010			2011			2010
Summary of Earnings
Net income (loss)	$	1,113		$	(13,796	)	$	1,471		$	(15,360	)
Net income (loss) available to common shareholders		176			(14,733	)		(403	)		(17,234	)
Net interest income (1)		16,596			16,286			33,114			33,575
Performance Ratios
Return on average assets-GAAP basis (2), (3)		0.21	%		(2.61	)%		0.14	%		(1.46	)%
Return on average tangible assets (2), (3), (4)		0.24			(2.58	)		0.17			(1.43	)
Return on average shareholders’ equity-GAAP basis (2), (3)		2.68			(30.73	)		1.79			(18.66	)
Net interest margin (1), (2)		3.36			3.27			3.42			3.36
Per Share Data
Net income (loss) diluted-GAAP basis	$	0.00		$	(0.25	)	$	0.00		$	(0.29	)
Net income (loss) basic-GAAP basis		0.00			(0.25	)		0.00			(0.29	)
Cash dividends declared		0.00			0.00			0.00			0.00

	June 30,						Increase/
	2011			2010			(Decrease)
Credit Analysis
Net charge-offs year-to-date	$	8,055		$	23,750			(66.1	)%
Net charge-offs to average loans		1.32	%		3.48	%		(62.1	)
Loan loss provision year-to-date	$	1,542		$	18,839			(91.8	)
Allowance to loans at end of period		2.63	%		3.10	%		(15.2	)
Nonperforming loans	$	46,165		$	90,885			(49.2	)
OREO		25,877			19,018			36.1
Total non-performing assets	$	72,042		$	109,903			(34.4	)
Restructured loans (accruing)	$	60,238		$	64,876			(7.1	)
Nonperforming assets to loans and other real estate owned at end of period		5.93	%		8.33	%		(28.8	)
Nonperforming assets to total assets		3.46	%		5.25	%		(34.1	)
Selected Financial Data
Total assets	$	2,082,863		$	2,092,812			(0.5	)
Securities available for sale (at fair value)		611,231			384,449			59.0
Securities held for investment (at amortized cost)		25,159			9,332			169.6
Net loans		1,157,714			1,260,319			(8.1	)
Deposits		1,681,461			1,715,894			(2.0	)
Total shareholders’ equity		171,148			186,990			(8.5	)
Common shareholders’ equity		124,276			141,367			(12.1	)
Book value per share common		1.33			1.51			(11.9	)
Tangible book value per share		1.80			1.96			(8.2	)
Tangible common book value per share (5)		1.30			1.47			(11.6	)
Average shareholders’ equity to average assets		8.06	%		7.82	%		3.1
Tangible common equity to tangible assets (5), (6)		5.84			6.60			(11.5	)
Average Balances (Year-to-Date)
Total assets	$	2,057,099		$	2,123,713			(3.1	)
Less: intangible assets		2,921			3,818			(23.5	)
Total average tangible assets	$	2,054,178		$	2,119,895			(3.1	)
Total equity	$	165,748		$	165,990			(0.1	)
Less: intangible assets		2,921			3,818			(23.5	)
Total average tangible equity	$	162,827		$	162,172			0.4

(1)	Calculated on a fully taxable equivalent basis using amortized cost.
(2)	These ratios are stated on an annualized basis and are not necessarily indicative of future periods.
(3)	The calculation of ROA and ROE do not include the mark-to-market unrealized gains (losses) because the unrealized gains (losses) are not included in net income (loss).
(4)	The Company believes that return on average assets and equity excluding the impacts of noncash amortization expense on intangible assets is a better measurement of the Company’s trend in earnings growth.
(5)	The Company defines tangible common equity as total shareholders equity less preferred stock and intangible assets.
(6)	The ratio of tangible common equity to tangible assets is a non-GAAP ratio used by the investment community to measure capital adequacy.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(Dollars in thousands, except per share data)	2011		2010			2011			2010
Interest on securities:
Taxable	$	4,575	$	3,326		$	8,251		$	7,053
Nontaxable		38		57			85			126
Interest and fees on loans		15,476		17,393			31,689			35,770
Interest on federal funds sold and other investments		198		272			431			511
Total Interest Income		20,287		21,048			40,456			43,460
Interest on deposits		643		1,237			1,235			2,478
Interest on time certificates		2,307		2,847			4,655			6,073
Interest on borrowed money		796		747			1,569			1,479
Total Interest Expense		3,746		4,831			7,459			10,030
Net Interest Income		16,541		16,217			32,997			33,430
Provision for loan losses		902		16,771			1,542			18,839
Net Interest Income After Provision for Loan Losses		15,639		(554	)		31,455			14,591
Noninterest income:
Service charges on deposit accounts		1,546		1,452			2,988			2,824
Trust income		517		491			1,040			967
Mortgage banking fees		509		464			904			885
Brokerage commissions and fees		223		257			543			543
Marine finance fees		349		310			647			649
Debit card income		995		822			1,886			1,539
Other deposit based EFT fees		79		82			169			175
Other		329		374			579			833
		4,547		4,252			8,756			8,415
Securities gains, net		0		1,377			0			3,477
Total Noninterest Income		4,547		5,629			8,756			11,892
Noninterest expenses:
Salaries and wages		6,534		6,776			13,085			13,238
Employee benefits		1,437		1,419			3,037			3,197
Outsourced data processing costs		1,699		1,503			3,221			2,982
Telephone / data lines		319		402			608			801
Occupancy		1,919		1,911			3,865			3,853
Furniture and equipment		618		585			1,211			1,194
Marketing		667		913			1,419			1,569
Legal and professional fees		1,585		1,602			3,342			3,703
FDIC assessments		688		1,039			1,647			2,045
Amortization of intangibles		212		246			424			561
Asset dispositions expense		441		310			1,527			559
Net loss on other real estate owned and repossessed assets		1,142		105			1,591			3,929
Other		1,812		2,060			3,763			4,212
Total Noninterest Expenses		19,073		18,871			38,740			41,843
Income (Loss) Before Income Taxes		1,113		(13,796	)		1,471			(15,360	)
Provision for income taxes		0		0			0			0
Net Income (Loss)		1,113		(13,796	)		1,471			(15,360	)
Preferred stock dividends and accretion on preferred stock discount		937		937			1,874			1,874
Net Income (Loss) Available to Common Shareholders	$	176	$	(14,733	)	$	(403	)	$	(17,234	)
Per share of common stock:
Net income (loss) diluted	$	0.00	$	(0.25	)	$	0.00		$	(0.29	)
Net income (loss) basic		0.00		(0.25	)		0.00			(0.29	)
Cash dividends declared		0.00		0.00			0.00			0.00
Average diluted shares outstanding		93,492,169		60,020,561			93,475,523			59,436,437
Average basic shares outstanding		93,492,169		60,020,561			93,475,523			59,436,437

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	June 30,			December 31,			June 30,
(Dollars in thousands, except share data)	2011			2010			2010
Assets
Cash and due from banks	$	28,782		$	35,358		$	28,971
Interest bearing deposits with other banks		138,109			176,047			283,314
Total Cash and Cash Equivalents		166,891			211,405			312,285
Securities:
Available for sale (at fair value)		611,231			435,140			384,449
Held for investment (at amortized cost)		25,159			26,861			9,332
Total Securities		636,390			462,001			393,781
Loans available for sale		4,758			12,519			7,372
Loans, net of deferred costs		1,188,945			1,240,608			1,300,600
Less: Allowance for loan losses		(31,231	)		(37,744	)		(40,281	)
Net Loans		1,157,714			1,202,864			1,260,319
Bank premises and equipment, net		34,892			36,045			37,668
Other real estate owned		25,877			25,697			19,018
Other intangible assets		2,713			3,137			3,560
Other assets		53,628			62,713			58,809
	$	2,082,863		$	2,016,381		$	2,092,812
Liabilities and Shareholders’ Equity
Liabilities
Deposits
Demand deposits (noninterest bearing)	$	321,876		$	289,621		$	276,455
Savings deposits		831,371			812,625			877,544
Other time certificates		274,565			281,681			288,310
Brokered time certificates		7,532			7,093			19,788
Time certificates of $100,000 or more		246,117			246,208			253,797
Total Deposits		1,681,461			1,637,228			1,715,894
Federal funds purchased and securities sold under agreements to repurchase, maturing within 30 days		102,827			98,213			75,310
Borrowed funds		50,000			50,000			50,000
Subordinated debt		53,610			53,610			53,610
Other liabilities		23,817			11,031			11,008
		1,911,715			1,850,082			1,905,822
Shareholders’ Equity
Preferred stock — Series A		46,872			46,248			45,623
Preferred stock — Series B		0			0			47,876
Common stock		9,354			9,349			5,895
Additional paid in capital		221,760			221,522			177,552
Accumulated deficit		(111,849	)		(112,652	)		(94,184	)
Treasury stock		(4	)		(1	)		(6	)
		166,133			164,466			182,756
Accumulated other comprehensive gain, net		5,015			1,833			4,234
Total Shareholders’ Equity		171,148			166,299			186,990
	$	2,082,863		$	2,016,381		$	2,092,812
Common Shares Outstanding		93,541,902			93,487,581			58,950,016

Note: The balance sheet at December 31, 2010 has been derived from the audited financial statements at that date.

CONSOLIDATED QUARTERLY FINANCIAL DATA(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	QUARTERS
	2011						2010						Last 12
(Dollars in thousands, except per share data)	Second			First			Fourth			Third			Months
Net income (loss)	$	1,113		$	358		$	(10,205	)	$	(7,638	)	$	(16,372	)
Operating Ratios
Return on average assets-GAAP basis (2),(3)		0.21	%		0.07	%		(2.01	)%		(1.47	)%		(0.80	)%
Return on average tangible assets (2),(3),(4)		0.24			0.10			(1.99	)		(1.44	)		(0.77	)
Return on average shareholders’ equity-GAAP basis (2),(3)		2.68			0.88			(23.31	)		(16.63	)		(9.52	)
Net interest margin (1),(2)		3.36			3.48			3.42			3.35			3.40
Average equity to average assets		7.98			8.14			8.63			8.83			8.39
Credit Analysis
Net charge-offs	$	4,024		$	4,031		$	4,678		$	10,700		$	23,433
Net charge-offs to average loans		1.32	%		1.32	%		1.47	%		3.29	%		1.87	%
Loan loss provision	$	902		$	640		$	3,975		$	8,866		$	14,383
Allowance to loans at end of period		2.63	%		2.80	%		3.04	%		3.04	%
Restructured Loans (accruing)	$	60,238			76,935			66,350			64,403
Nonperforming loans	$	46,165			66,233			68,284			69,519
OREO		25,877			24,111			25,697			32,406
Nonperforming assets	$	72,042		$	90,344		$	93,981		$	101,925
Nonperforming assets to loans and other real estate owned at end of period		5.93	%		7.23	%		7.42	%		7.87	%
Nonperforming assets to total assets		3.46			4.34			4.66			5.06
Nonaccrual loans and accruing loans 90 days or more past due to loans outstanding at end of period		3.88			5.41			5.50			5.50
Per Share Common Stock
Net income (loss) diluted-GAAP basis	$	0.00		$	(0.01	)	$	(0.12	)	$	(0.09	)	$	(0.22	)
Net income (loss) basic-GAAP basis		0.00			(0.01	)		(0.12	)		(0.09	)	$	(0.22	)
Cash dividends declared		—			—			—			—		$	—
Book value per share common		1.33			1.28			1.28			1.43
Average Balances
Total assets	$	2,083,858		$	2,030,045		$	2,013,405		$	2,062,857
Less: Intangible assets		2,816			3,027			3,239			3,452
Total average tangible assets	$	2,081,042		$	2,027,018		$	2,010,166		$	2,059,405
Total equity	$	166,342		$	165,148		$	173,707		$	182,202
Less: Intangible assets		2,816			3,027			3,239			3,452
Total average tangible equity	$	163,526		$	162,121		$	170,468		$	178,750

(1)	Calculated on a fully taxable equivalent basis using amortized cost.
(2)	These ratios are stated on an annualized basis and are not necessarily indicative of future periods.
(3)	The calculation of ROA and ROE do not include the mark-to-market unrealized gains (losses), because the unrealized gains (losses) are not included in net income (loss).
(4)	The Company believes that return on average assets and equity excluding the impacts of noncash amortization expense on intangible assets is a better measurement of the Company’s trend in earnings growth.

	June 30,		December 31,		June 30,
SECURITIES	2011		2010		2010
U.S. Treasury and U.S. Government Agencies	$	4,224	$	4,212	$	5,312
Mortgage-backed		602,882		426,477		374,377
Obligations of states and political subdivisions		1,400		1,709		1,729
Other securities		2,725		2,742		3,031
Securities Available for Sale		611,231		435,140		384,449
Mortgage-backed		16,448		18,963		5,364
Obligations of states and political subdivisions		7,711		7,398		3,968
Other securities		1,000		500		0
Securities Held for Investment		25,159		26,861		9,332
Total Securities	$	636,390	$	462,001	$	393,781

	June 30,		December 31,		June 30,
LOANS	2011		2010		2010
Construction and land development	$	49,193	$	79,306	$	106,825
Real estate mortgage		1,039,997		1,060,597		1,082,518
Installment loans to individuals		51,351		51,602		61,005
Commercial and financial		48,012		48,825		49,949
Other loans		392		278		303
Total Loans	$	1,188,945	$	1,240,608	$	1,300,600

AVERAGE BALANCES, YIELDS AND RATES⁽¹⁾(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	2011												2010
	Second Quarter						First Quarter						Second Quarter
	Average			Yield/			Average			Yield/			Average			Yield/
(Dollars in thousands)	Balance			Rate			Balance			Rate			Balance			Rate
Assets
Earning assets:
Securities:
Taxable	$	591,265			3.10	%	$	468,489			3.14	%	$	388,538			3.42	%
Nontaxable		3,518			6.48			3,921			7.45			5,703			6.10
Total Securities		594,783			3.11			472,410			3.17			394,241			3.46
Federal funds sold and other investments		163,847			0.48			216,906			0.44			267,380			0.41
Loans, net		1,221,388			5.09			1,236,274			5.33			1,361,343			5.19
Total Earning Assets		1,980,018			4.12			1,925,590			4.26			2,022,964			4.22
Allowance for loan losses		(33,425	)					(37,254	)					(42,415	)
Cash and due from banks		29,513						30,122						28,559
Premises and equipment		35,368						35,936						38,182
Other assets		72,384						75,651						73,098
	$	2,083,858					$	2,030,045					$	2,120,388
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
NOW	$	48,043			0.26	%	$	47,758			0.25	%	$	52,258			0.36	%
Savings deposits		123,759			0.11			116,896			0.11			105,984			0.23
Money market accounts		663,569			0.35			645,241			0.33			726,018			0.62
Time deposits		530,906			1.74			534,401			1.78			574,658			1.99
Federal funds purchased and other short term borrowings		105,134			0.27			93,279			0.28			86,836			0.28
Other borrowings		103,610			2.81			103,610			2.77			103,610			2.65
Total Interest-Bearing Liabilities		1,575,021			0.95			1,541,185			0.98			1,649,364			1.17
Demand deposits (noninterest-bearing)		330,858						312,310						279,960
Other liabilities		11,637						11,402						10,971
Total Liabilities		1,917,516						1,864,897						1,940,295
Shareholders’ equity		166,342						165,148						180,093
	$	2,083,858					$	2,030,045					$	2,120,388
Interest expense as a % of earning assets					0.76	%					0.78	%					0.96	%
Net interest income as a % of earning assets					3.36						3.48						3.27

(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.

QUARTERLY TRENDS — LOANS AT END OF PERIOD (Dollars in Millions)(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

		2009								2010								2011				Nonperforming
Construction and land development		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		2nd Qtr		Number
Residential:
Condominiums	>$4 million	$	8.4	$	7.9	$	5.3	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—		—
	<$4 million		7.9		8.8		3.7		6.1		0.9		0.9		0.9		0.9		0.5		0.04		0.04		1
Town homes	>$4 million		—		—		—		—		—		—		—		—		—		—		—		—
	<$4 million		4.2		2.3		—		—		—		—		—		—		—		—		—		—
Single Family Residences	>$4 million		6.6		6.5		—		—		—		—		—		—		—		—		—		—
	<$4 million		13.9		10.3		7.1		4.1		3.9		3.6		3.8		—		—		—		—		—
Single Family Land & Lots	>$4 million		21.8		21.8		5.9		5.9		5.9		5.9		—		—		—		—		—		—
	<$4 million		29.6		21.5		19.5		16.6		15.7		9.6		10.3		7.0		6.6		6.5		0.04		2
Multifamily	>$4 million		7.8		7.8		6.6		6.6		6.6		4.3		—		—		—		—		—		—
	<$4 million		17.0		9.8		9.5		8.3		8.1		8.2		6.3		6.1		6.1		5.7		1.1		2
TOTAL	>$4 million		44.6		44.0		17.8		12.5		12.5		10.2		—		—		—		—		—		—
TOTAL	<$4 million		72.6		52.7		39.8		35.1		28.6		22.3		21.3		14.0		13.2		12.2		1.2		5
GRAND TOTAL		$	117.2	$	96.7	$	57.6	$	47.6	$	41.1	$	32.5	$	21.3	$	14.0	$	13.2	$	12.2	$	1.2		5

QUARTERLY TRENDS — LOANS AT END OF PERIOD (Dollars in Millions)(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	2009								2010								2011
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr
Construction and land development
Residential
Condominiums	$	16.3	$	16.7	$	9.0	$	6.1	$	0.9	$	0.9	$	0.9	$	0.9	$	0.5	$	—
Townhomes		4.2		2.3		—		—		—		—		—		—		—		—
Single family residences		20.5		16.8		7.1		4.1		3.9		3.6		3.8		—		—		—
Single family land and lots		51.4		43.3		25.4		22.5		21.6		15.5		10.3		7.0		6.6		6.5
Multifamily		24.8		17.6		16.1		14.9		14.7		12.5		6.3		6.1		6.1		5.7
		117.2		96.7		57.6		47.6		41.1		32.5		21.3		14.0		13.2		12.2
Commercial
Office buildings		17.4		13.8		13.8		13.9		13.7		—		—		—		—		—
Retail trade		70.0		55.9		23.0		3.9		3.9		—		—		—		—		—
Land		60.9		51.2		50.8		45.6		45.7		38.5		35.1		33.6		33.9		10.3
Industrial		9.0		8.5		8.2		2.5		2.5		0.3		0.3		—		—		—
Healthcare		5.7		6.0		4.8		4.8		—		—		—		—		—		—
Churches and educational facilities		—		—		—		—		—		—		—		—		—		—
Lodging		0.6		—		—		—		—		—		—		—		—		—
Convenience stores		—		—		—		—		—		—		—		0.2		0.5		0.6
Marina		31.6		30.0		28.1		6.8		6.8		—		—		—		—		—
Other		6.2		1.4		—		—		—		—		—		—		—		—
		201.4		166.8		128.7		77.5		72.6		38.8		35.4		33.8		34.4		10.9
Individuals
Lot loans		34.0		32.4		30.7		29.3		28.9		27.4		26.3		24.4		20.8		19.4
Construction		16.2		11.8		11.1		8.5		8.7		8.2		9.1		7.1		7.3		6.7
		50.2		44.2		41.8		37.8		37.6		35.6		35.4		31.5		28.1		26.1
Total construction and land development		368.8		307.7		228.1		162.9		151.3		106.9		92.1		79.3		75.7		49.2
Real estate mortgages
Residential real estate
Adjustable		333.1		328.0		325.9		289.4		290.5		295.9		300.9		303.3		308.6		314.3
Fixed rate		90.8		90.6		89.5		88.6		87.6		86.0		84.1		82.6		86.6		88.8
Home equity mortgages		85.5		83.8		83.9		86.8		89.1		79.0		74.4		73.4		67.7		63.1
Home equity lines		60.3		60.1		59.7		60.1		60.1		58.8		58.4		57.7		57.4		56.9
		569.7		562.5		559.0		524.9		527.3		519.7		517.8		517.0		520.3		523.1
Commercial real estate
Office buildings		140.6		141.6		144.2		132.3		131.1		128.2		122.9		122.0		121.3		120.0
Retail trade		109.1		120.0		151.4		164.6		163.5		155.9		152.0		151.5		150.6		149.6
Land		—		—		—		—		—		—		—		—		—		—
Industrial		95.3		93.0		89.3		88.4		81.7		84.0		79.8		78.0		76.3		68.5
Healthcare		28.3		30.9		25.4		24.7		29.1		29.4		29.0		30.0		26.6		26.3
Churches and educational facilities		34.8		34.6		30.8		29.6		29.1		28.5		29.4		28.8		28.6		28.2
Recreation		1.7		1.4		3.3		3.0		3.0		3.0		2.9		2.9		2.8		2.8
Multifamily		27.2		31.7		35.1		29.7		25.3		23.6		23.2		22.4		14.2		16.8
Mobile home parks		3.0		5.6		5.6		5.4		5.3		2.6		2.6		2.5		2.5		2.4
Lodging		26.3		26.3		25.6		25.5		23.5		23.4		22.1		21.9		21.7		20.0
Restaurant		6.1		5.1		5.0		4.7		4.7		4.6		4.5		4.5		4.2		4.3
Agricultural		8.2		11.8		12.0		11.7		11.4		10.8		10.7		10.6		9.2		9.2
Convenience stores		23.3		23.2		22.8		22.1		22.3		21.0		18.9		18.6		20.1		20.0
Marina		18.1		18.0		5.9		15.8		15.7		22.2		22.1		21.9		21.7		21.5
Other		24.9		29.6		28.1		26.6		25.3		25.6		26.8		28.0		27.4		27.3
		546.9		572.8		584.5		584.1		571.0		562.8		546.9		543.6		527.2		516.9
Total real estate mortgages		1,116.6		1,135.3		1,143.5		1,109.0		1,098.3		1,082.5		1,064.7		1,060.6		1,047.5		1,040.0
Commercial & financial		75.5		71.8		66.0		61.1		62.1		49.9		54.0		48.8		51.5		48.0
Installment loans to individuals
Automobile and trucks		19.4		18.0		16.6		15.3		14.4		12.9		11.6		10.9		10.1		9.5
Marine loans		26.3		26.9		26.8		26.4		25.3		27.3		19.7		19.8		19.4		20.2
Other		25.7		24.3		23.3		22.3		21.7		20.8		20.9		20.9		20.9		21.6
		71.4		69.2		66.7		64.0		61.4		61.0		52.2		51.6		50.4		51.3
Other		0.3		0.3		0.3		0.5		0.2		0.3		0.3		0.3		0.3		0.4
	$	1,632.6	$	1,584.3	$	1,504.6	$	1,397.5	$	1,373.3	$	1,300.6	$	1,263.3	$	1,240.6	$	1,225.4	$	1,188.9

QUARTERLY TRENDS — INCREASE (DECREASE) IN LOANS BY QUARTER (Dollars in Millions)Unaudited
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	2009												2010												2011
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr
Construction and land development
Residential
Condominiums	$	(1.1	)	$	0.4		$	(7.7	)	$	(2.9	)	$	(5.2	)	$	—		$	—		$	—		$	(0.4	)	$	(0.5	)
Townhomes		(1.9	)		(1.9	)		(2.3	)		—			—			—			—			—			—			—
Single family residences		(6.3	)		(3.7	)		(9.7	)		(3.0	)		(0.2	)		(0.3	)		0.2			(3.8	)		—			—
Single family land and lots		(1.4	)		(8.1	)		(17.9	)		(2.9	)		(0.9	)		(6.1	)		(5.2	)		(3.3	)		(0.4	)		(0.1	)
Multifamily		(2.0	)		(7.2	)		(1.5	)		(1.2	)		(0.2	)		(2.2	)		(6.2	)		(0.2	)		—			(0.4	)
		(12.7	)		(20.5	)		(39.1	)		(10.0	)		(6.5	)		(8.6	)		(11.2	)		(7.3	)		(0.8	)		(1.0	)
Commercial
Office buildings		0.1			(3.6	)		—			0.1			(0.2	)		(13.7	)		—			—			—			—
Retail trade		1.3			(14.1	)		(32.9	)		(19.1	)		—			(3.9	)		—			—			—			—
Land		(12.4	)		(9.7	)		(0.4	)		(5.2	)		0.1			(7.2	)		(3.4	)		(1.5	)		0.3			(23.6	)
Industrial		(4.3	)		(0.5	)		(0.3	)		(5.7	)		—			(2.2	)		—			(0.3	)		—			—
Healthcare		5.7			0.3			(1.2	)		—			(4.8	)		—			—			—			—			—
Churches and educational facilities		—			—			—			—			—			—			—			—			—			—
Lodging		0.6			(0.6	)		—			—			—			—			—			—			—			—
Convenience stores		—			—			—			—			—			—			—			0.2			0.3			0.1
Marina		0.9			(1.6	)		(1.9	)		(21.3	)		(0.0	)		(6.8	)		—			—			—			—
Other		0.2			(4.8	)		(1.4	)		—			—			—			—			—			—			—
		(7.9	)		(34.6	)		(38.1	)		(51.2	)		(4.9	)		(33.8	)		(3.4	)		(1.6	)		0.6			(23.5	)
Individuals
Lot loans		(1.7	)		(1.6	)		(1.7	)		(1.4	)		(0.4	)		(1.5	)		(1.1	)		(1.9	)		(3.6	)		(1.4	)
Construction		(4.1	)		(4.4	)		(0.7	)		(2.6	)		0.2			(0.5	)		0.9			(2.0	)		0.2			(0.6	)
		(5.8	)		(6.0	)		(2.4	)		(4.0	)		(0.2	)		(2.0	)		(0.2	)		(3.9	)		(3.4	)		(2.0	)
Total construction and land development		(26.4	)		(61.1	)		(79.6	)		(65.2	)		(11.6	)		(44.4	)		(14.8	)		(12.8	)		(3.6	)		(26.5	)
Real estate mortgages
Residential real estate
Adjustable		4.1			(5.1	)		(2.1	)		(36.5	)		1.1			5.4			5.0			2.4			5.3			5.7
Fixed rate		(4.7	)		(0.2	)		(1.1	)		(0.9	)		(1.0	)		(1.6	)		(1.9	)		(1.5	)		4.0			2.2
Home equity mortgages		0.7			(1.7	)		0.1			2.9			2.3			(10.1	)		(4.6	)		(1.0	)		(5.7	)		(4.6	)
Home equity lines		1.8			(0.2	)		(0.4	)		0.4			—			(1.3	)		(0.4	)		(0.7	)		(0.3	)		(0.5	)
		1.9			(7.2	)		(3.5	)		(34.1	)		2.4			(7.6	)		(1.9	)		(0.8	)		3.3			2.8
Commercial real estate
Office buildings		(5.8	)		1.0			2.6			(11.9	)		(1.2	)		(2.9	)		(5.3	)		(0.9	)		(0.7	)		(1.3	)
Retail trade		(2.8	)		10.9			31.4			13.2			(1.1	)		(7.6	)		(3.9	)		(0.5	)		(0.9	)		(1.0	)
Land		—			—			—			—			—			—			—			—			—			—
Industrial		0.6			(2.3	)		(3.7	)		(0.9	)		(6.7	)		2.3			(4.2	)		(1.8	)		(1.7	)		(7.8	)
Healthcare		(0.9	)		2.6			(5.5	)		(0.7	)		4.4			0.3			(0.4	)		1.0			(3.4	)		(0.3	)
Churches and educational facilities		(0.4	)		(0.2	)		(3.8	)		(1.2	)		(0.5	)		(0.6	)		0.9			(0.6	)		(0.2	)		(0.4	)
Recreation		—			(0.3	)		1.9			(0.3	)		—			—			(0.1	)		—			(0.1	)		—
Multifamily		—			4.5			3.4			(5.4	)		(4.4	)		(1.7	)		(0.4	)		(0.8	)		(8.2	)		2.6
Mobile home parks		—			2.6			—			(0.2	)		(0.1	)		(2.7	)		—			(0.1	)		—			(0.1	)
Lodging		(0.3	)		—			(0.7	)		(0.1	)		(2.0	)		(0.1	)		(1.3	)		(0.2	)		(0.2	)		(1.7	)
Restaurant		(0.1	)		(1.0	)		(0.1	)		(0.3	)		—			(0.1	)		(0.1	)		—			(0.3	)		0.1
Agricultural		(0.3	)		3.6			0.2			(0.3	)		(0.3	)		(0.6	)		(0.1	)		(0.1	)		(1.4	)		—
Convenience stores		(0.2	)		(0.1	)		(0.4	)		(0.7	)		0.2			(1.3	)		(2.1	)		(0.3	)		1.5			(0.1	)
Marina		(0.1	)		(0.1	)		(12.1	)		9.9			(0.1	)		6.5			(0.1	)		(0.2	)		(0.2	)		(0.2	)
Other		(0.5	)		4.7			(1.5	)		(1.5	)		(1.3	)		0.3			1.2			1.2			(0.6	)		(0.1	)
		(10.8	)		25.9			11.7			(0.4	)		(13.1	)		(8.2	)		(15.9	)		(3.3	)		(16.4	)		(10.3	)
Total real estate mortgages		(8.9	)		18.7			8.2			(34.5	)		(10.7	)		(15.8	)		(17.8	)		(4.1	)		(13.1	)		(7.5	)
Commercial & financial		(7.3	)		(3.7	)		(5.8	)		(4.9	)		1.0			(12.2	)		4.1			(5.2	)		2.7			(3.5	)
Installment loans to individuals
Automobile and trucks		(1.4	)		(1.4	)		(1.4	)		(1.3	)		(0.9	)		(1.5	)		(1.3	)		(0.7	)		(0.8	)		(0.6	)
Marine loans		0.3			0.6			(0.1	)		(0.4	)		(1.1	)		2.0			(7.6	)		0.1			(0.4	)		0.8
Other		(0.4	)		(1.4	)		(1.0	)		(1.0	)		(0.6	)		(0.9	)		0.1			—			—			0.7
		(1.5	)		(2.2	)		(2.5	)		(2.7	)		(2.6	)		(0.4	)		(8.8	)		(0.6	)		(1.2	)		0.9
Other		—			—			—			0.2			(0.3	)		0.1			—			—			—			0.1
	$	(44.1	)	$	(48.3	)	$	(79.7	)	$	(107.1	)	$	(24.2	)	$	(72.7	)	$	(37.3	)	$	(22.7	)	$	(15.2	)	$	(36.5	)