Seacoast Banking Corporation of Florida (SBCF) 8-K Seacoast Reports Improved Earnings and Credit Quality for Third Quarter 2011

EXHIBIT 99.1
To Form 8-K dated October 20, 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
THIRD QUARTER 2011

–Earnings increase 12 percent annualized for third quarter

–Nonperforming loans down 79% compared to peak levels in 2009

–Ending loans increased $19.6 million linked quarter or 6.6% annualized

–Average demand deposits increased 15.9% over the prior year

STUART, FL., October 20, 2011 — Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCF) today reported a third quarter 2011 net income of $2.6 million, compared to a net loss of $7.6 million for the third quarter of 2010. For the first nine months of 2011, net income totaled $4.1 million compared to a net loss of $23.0 million a year ago. Including preferred stock dividends and accretion of $937,000, the net income applicable to common shareholders was $1.7 million or $0.02 per average common diluted share for the third quarter, compared to a net loss of $8.6 million or $0.09 per average common diluted share for the third quarter of 2010.

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Nonperforming loans to loans outstanding continued to trend lower at 2.70 percent, marking the eighth consecutive quarterly decline from the peak level of 10.23 percent at September 30, 2009. Nonperforming assets fell to 2.75 percent of total assets from 5.06 percent a year ago and totaled $56.3 million at September 30, 2011, a dollar level last achieved at September 30, 2007.

Revenues continued to grow and improved to $21.7 million for the quarter, up $623,000 linked quarter and $508,000 compared to a year ago. New customer growth has produced increases in consumer and commercial core checking account relationships resulting in better deposit mix and increased deposit fees and interchange income. Average noninterest bearing checking balances for the third quarter totaled $323 million, up $44 million or 15.9 percent over the prior year.

“Seacoast’s third quarter results were improved and reflected continued sequential revenue growth and improved credit trends,” said Dennis S. Hudson, III, Chairman and Chief Executive Officer. “Bottom-line results were the best the Company has generated since 2007.

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Balance Sheet Highlights

Total loans were $1,209 million at September 30, 2011, and grew $20 million or 6.6 percent annualized linked quarter, the first quarterly increase since 2007. Loan growth benefited from reduced need to liquidate problem loans and continued strong residential production. There were also improvements in commercial production resulting from a focused program to target small business segments less impacted by the lingering effects of the recession.

Total deposits were $1,661 million at September 30, 2011, increasing $24 million or 1.5 percent compared with a year ago. Noninterest bearing checking balances totaled $324 million, up $48 million or 17.2 percent compared with last year. Total transaction accounts (demand deposit, NOW and money markets) were up $61 million or 6.2 percent and totaled $1,043 million compared to $982.1 million at September 30, 2010. Savings balances increased $20 million to $128 million at quarter-end. Retail certificates of deposit continued to decline with a reduction of $38.7 million or 7.3 percent in the third quarter, and $56.7 million lower than in the third quarter last year.

The Company’s balance sheet continues to be primarily core funded with a loan-to-deposit ratio of 72.7 percent at September 30, 2011, and a strong liquidity position to support further growth.

Capital levels remained strong again this quarter with the Tier 1 capital ratio estimated at 17.4 percent at September 30, 2011 compared with 17.1 percent a year ago. With the strong capital ratios, the Company is well positioned to take advantage of growth opportunities in its core markets.

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Credit Quality Highlights

Improvement in overall credit quality continued in the third quarter. Nonperforming assets decreased $45.6 million to $56.2 million at September 30, 2011 compared to September 30, 2010. Net charge-offs declined from $10.7 million in the third quarter 2010 to $2.8 million for this year’s third quarter. The allowance for loan losses is 87 percent of nonperforming loans as of September 30, 2011 compared with 55 percent for 2010.

Additional highlights include:

• Mortgage banking revenue in the third quarter 2011 was up $47,000 or 9.2 percent linked quarter due to higher volume and spreads;

• Service charges on deposit accounts totaled $1.675 million for the quarter, an increase of 10.9 percent over the same quarter last year and up 8.3 percent linked quarter;

• Wealth management fees totaled $862,000 for the third quarter 2011, up $56,000 or 6.9 percent compared to the same quarter 2010;

• Interchange income totaled $969,000 for the quarter, an increase of $159,000 or 19.6 percent compared to third quarter 2010;

• Total noninterest bearing deposits at September 30, 2011 comprised 19.5 percent of total deposits, up from 16.9 percent a year ago;

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• Checking account household growth was 4.6 percent annualized for the first nine months of 2011; and

• Tangible common equity (TCE) ratio improved to 5.91 percent from 5.84 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.

Net interest income for the quarter totaled $16.9 million, up $393,000 compared with third quarter 2010. The increase over the prior year’s third quarter net interest income is a result of lower deposit costs and lower rates paid on interest bearing liabilities, and a larger investment portfolio. The net interest margin for the third quarter totaled 3.44 percent, up 8 basis points compared to the second quarter 2011, and 9 basis points higher than the third quarter 2010. A stable margin is expected going forward, as a result of lower levels of nonperforming loans and increased loan balances. For the first nine months of 2011, the margin was 3.43 percent, up 8 basis points compared with the prior year’s first nine months.

The Company recorded no provision for loan losses in the third quarter 2011, compared to $0.9 million for the second quarter and $8.9 million for the third quarter of 2010. The allowance for loan losses as a percentage of loans was 2.35 percent at September 30, 2011, compared to 2.63 percent for the second quarter this year and 3.04 percent at September 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 $2.8 million compared to $10.7 million for the third quarter 2010 and $4.0 million for the second quarter 2011.

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Third quarter 2011 noninterest income, excluding securities gains and losses, was up $159,000 compared to the second quarter and was up $174,000 compared to the third quarter of 2010. Mortgage banking fees were up $47,000 compared to the second quarter of 2011 with revenues of $556,000, down $98,000 compared with third quarter 2010. Service charges on deposits and interchange income were both up when compared to last year’s third quarter as a result of the increases in new business and retail households. Combined revenues related to these deposit account types totaled $2.6 million in the third quarter, up $323,000 or 13.9 percent compared with third quarter 2010.

	Q-3		Q-2		Q-1		Q-4		Q-3
(dollars in thousands)	2011		2011		2011		2010		2010
Noninterest Income:
Service charges on deposit accounts	$	1,675	$	1,546	$	1,442	$	1,590	$	1,511
Trust income		541		517		523		510		500
Mortgage banking fees		556		509		395		580		654
Brokerage commissions and fees		321		223		320		325		306
Marine finance fees		229		349		298		355		330
Interchange income		969		995		891		814		810
Other deposit based EFT fees		71		79		90		75		71
Other		344		329		250		338		350
Total		4,706		4,547		4,209		4,587		4,532
Gain on sale of merchant business		0		0		0		600		0
Total	$	4,706	$	4,547	$	4,209	$	5,187	$	4,532

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Core operating expenses increased by $188,000 for the quarter but were lower by $861,000 over the prior year. Expenses associated with other real estate owned and asset dispositions were lower by $198,000 compared to the second quarter, and down by $51,000 compared with the prior year third quarter. Salaries, wages and benefits for the third quarter 2011 increased $322,000 or 4.0 percent from the second quarter 2011, and were $295,000 or 3.7 percent higher when compared to the same period in 2010, as the result of added commercial lenders and higher commissions from increased residential loan production.FDIC assessments were unchanged for the third quarter compared with second quarter but were down by $279,000 compared to last year’s assessments.

	Q-3		Q-2		Q-1		Q-4		Q-3
(dollars in thousands)	2011		2011		2011		2010		2010
Noninterest Expense:
Salaries and wages	$	6,902	$	6,534	$	6,551	$	6,539	$	6,631
Employee benefits		1,391		1,437		1,600		1,153		1,367
Outsourced data processing costs		1,685		1,699		1,522		1,496		1,503
Telephone / data lines		286		319		289		321		383
Occupancy expense		1,967		1,919		1,946		1,699		1,928
Furniture and equipment expense		555		618		593		609		595
Marketing expense		551		667		752		764		577
Legal and professional fees		1,496		1,585		1,757		1,783		2,491
FDIC assessments		687		688		959		947		966
Amortization of intangibles		211		212		212		212		212
Other		1,947		1,812		1,951		2,330		1,886
Total Core Operating Expense		17,678		17,490		18,132		17,853		18,539
Net loss on OREO and repossessed assets		906		441		449		8,763		849
Asset dispositions expense		479		1,142		1,086		1,122		587
Total	$	19,063	$	19,073	$	19,667	$	27,738	$	19,975

The Company’s residential lending group has produced solid, quality mortgage loan growth in 2011. A total of 329 applications were accepted in the third quarter 2011 for total loans of $87 million, and 988 applications were taken in the first nine months for $233.1 million. Closed mortgage loans totaled $53 million for the quarter, up $3 million compared with the second quarter 2011. A total of $17 million in residential mortgage loans were sold in the third quarter of 2011. Over the first nine months of 2011, a total of $49 million in residential mortgage loans were sold and $86 million were added to the portfolio.

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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 third quarter reduced the overall cost of total deposits to 0.65 percent, 5 basis points lower than in the second quarter 2011 and 19 basis points lower than the third quarter 2010.

Average total deposits for the third quarter ended September 30, 2011 were $1,675 million, $16 million lower than in the third quarter 2010, and ending deposits were seasonally lower compared to second quarter at $1,661 million. Compared to the prior year, deposits were lower due to a planned deposit runoff of customers with single-service certificates of deposit and brokered certificates as they matured. The mix of deposits continued to improve in the third quarter with low cost average interest bearing NOW and savings deposits increasing $7 million or 3.1 percent annualized, and average demand deposits stable at $323 million compared to the second quarter 2011 at $331 million. Average demand deposits increased $44 million or 15.9 percent compared with third quarter a year ago. The average cost of interest bearing core deposits (NOW, savings and money market deposit accounts) during the third quarter was 0.29 percent, down 11 basis points from the third quarter of 2010. Interest rates paid on certificates of deposit were also lower compared to the third quarter last year and totaled 1.66 percent during the third quarter 2011, a decline of 28 basis points. The average cost of total interest bearing liabilities was 0.87 percent, down 8 basis points compared to the second quarter 2011 and 22 basis points lower than the third quarter of 2010.

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As previously reported, the Company has experienced strong growth in core deposit customer relationships since implementing its core growth strategy. A total of 8,065 new households started banking with Seacoast over the past year, up 27.2 percent over the same period one year earlier. These new households have opened 8,523 new checking accounts, an increase of 36.8 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.

Seacoast will host a conference call on Friday, October 21, 2011 at 9:30 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 October 21, 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 October 21, 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.

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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.

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.

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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, 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						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands,except share data)	2011			2010			2011			2010
Summary of Earnings
Net income (loss)	$	2,648		$	(7,638	)	$	4,119		$	(22,998	)
Net income (loss) available to common shareholders		1,711			(8,575	)		1,308			(25,809	)
Net interest income (1)		16,925			16,532			50,039			50,107
Performance Ratios
Return on average assets-GAAP basis (2), (3)		0.51	%		(1.47	)%		0.27	%		(1.46	)%
Return on average tangible assets (2), (3), (4)		0.54			(1.44	)		0.30			(1.43	)
Return on average shareholders’ equity-GAAP basis (2), (3)		6.33			(16.63	)		3.32			(17.93	)
Net interest margin (1), (2)		3.44			3.35			3.43			3.35
Per Share Data
Net income (loss) diluted-GAAP basis	$	0.02		$	(0.09	)	$	0.01		$	(0.36	)
Net income (loss) basic-GAAP basis		0.02			(0.09	)		0.01			(0.36	)
Cash dividends declared		0.00			0.00			0.00			0.00

	September 30,						Increase/
	2011			2010			(Decrease)
Credit Analysis
Net charge-offs year-to-date	$	10,885		$	34,450			(68.4	)%
Net charge-offs to average loans		1.19	%		3.42	%		(65.2	)
Loan loss provision year-to-date	$	1,542		$	27,705			(94.4	)
Allowance to loans at end of period		2.35	%		3.04	%		(22.7	)
Nonperforming loans	$	32,627		$	69,519			(53.1	)
Other real estate owned		23,702			32,406			(26.9	)
Total nonperforming assets	$	56,329		$	101,925			(44.7	)
Restructured loans (accruing)	$	72,751		$	64,403			13.0
Nonperforming assets to loans and other real estate owned at end of period		4.57	%		7.87	%		(41.9	)
Nonperforming assets to total assets		2.75	%		5.06	%		(45.7	)
Selected Financial Data
Total assets	$	2,051,037		$	2,014,405			1.8
Securities available for sale (at fair value)		611,195			426,931			43.2
Securities held for investment (at amortized cost)		24,575			23,500			4.6
Net loans		1,180,147			1,224,899			(3.7	)
Deposits		1,661,274			1,637,030			1.5
Total shareholders’ equity		170,793			179,595			(4.9	)
Common shareholders’ equity		123,608			133,659			(7.5	)
Book value per share common		1.31			1.43			(8.4	)
Tangible book value per share		1.78			1.89			(5.8	)
Tangible common book value per share (5)		1.28			1.39			(7.9	)
Average shareholders’ equity to average assets		8.06	%		8.15	%		(1.1	)
Tangible common equity to tangible assets (5), (6)		5.91			6.48			(8.8	)
Average Balances (Year-to-Date)
Total assets	$	2,056,344		$	2,103,204			(2.2	)
Less: intangible assets		2,814			3,695			(23.8	)
Total average tangible assets	$	2,053,530		$	2,099,509			(2.2	)
Total equity	$	165,781		$	171,453			(3.3	)
Less: intangible assets		2,814			3,695			(23.8	)
Total average tangible equity	$	162,967		$	167,758			(2.9	)

(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					Nine Months Ended
	September 30,					September 30,
(Dollars in thousands, except per share data)	2011		2010			2011		2010
Interest on securities:
Taxable	$	4,750	$	3,344		$	13,001	$	10,397
Nontaxable		38		61			123		187
Interest and fees on loans		15,315		17,181			47,004		52,951
Interest on federal funds sold and other investments		175		252			606		763
Total Interest Income		20,278		20,838			60,734		64,298
Interest on deposits		605		865			1,840		3,343
Interest on time certificates		2,134		2,725			6,789		8,798
Interest on borrowed money		671		787			2,240		2,266
Total Interest Expense		3,410		4,377			10,869		14,407
Net Interest Income		16,868		16,461			49,865		49,891
Provision for loan losses		0		8,866			1,542		27,705
Net Interest Income After Provision for Loan Losses		16,868		7,595			48,323		22,186
Noninterest income:
Service charges on deposit accounts		1,675		1,511			4,663		4,335
Trust income		541		500			1,581		1,467
Mortgage banking fees		556		654			1,460		1,539
Brokerage commissions and fees		321		306			864		849
Marine finance fees		229		330			876		979
Interchange income		969		810			2,855		2,349
Other deposit based EFT fees		71		71			240		246
Other		344		350			923		1,183
		4,706		4,532			13,462		12,947
Securities gains, net		137		210			137		3,687
Total Noninterest Income		4,843		4,742			13,599		16,634
Noninterest expenses:
Salaries and wages		6,902		6,631			19,987		19,869
Employee benefits		1,391		1,367			4,428		4,564
Outsourced data processing costs		1,685		1,503			4,906		4,485
Telephone / data lines		286		383			894		1,184
Occupancy		1,967		1,928			5,832		5,781
Furniture and equipment		555		595			1,766		1,789
Marketing		551		577			1,970		2,146
Legal and professional fees		1,496		2,491			4,838		6,194
FDIC assessments		687		966			2,334		3,011
Amortization of intangibles		211		212			635		773
Asset dispositions expense		479		587			2,006		1,146
Net loss on other real estate owned and repossessed assets		906		849			2,497		4,778
Other		1,947		1,886			5,710		6,098
Total Noninterest Expenses		19,063		19,975			57,803		61,818
Income (Loss) Before Income Taxes		2,648		(7,638	)		4,119		(22,998	)
Provision for income taxes		0		0			0		0
Net Income (Loss)		2,648		(7,638	)		4,119		(22,998	)
Preferred stock dividends and accretion on preferred stock discount		937		937			2,811		2,811
Net Income (Loss) Available to Common Shareholders	$	1,711	$	(8,575	)	$	1,308	$	(25,809	)
Per share of common stock:
Net income (loss) diluted	$	0.02	$	(0.09	)	$	0.01	$	(0.36	)
Net income (loss) basic		0.02		(0.09	)		0.01		(0.36	)
Cash dividends declared		0.00		0.00			0.00		0.00
Average diluted shares outstanding		93,878,199		93,388,715			93,611,223		70,878,230
Average basic shares outstanding		93,524,950		93,388,715			93,492,180		70,878,230

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	September 30,			December 31,			September 30,
(Dollars in thousands, except share data)	2011			2010			2010
Assets
Cash and due from banks	$	29,307		$	35,358		$	27,833
Interest bearing deposits with other banks		87,578			176,047			173,409
Total Cash and Cash Equivalents		116,885			211,405			201,242
Securities:
Available for sale (at fair value)		611,195			435,140			426,931
Held for investment (at amortized cost)		24,575			26,861			23,500
Total Securities		635,770			462,001			450,431
Loans available for sale		6,897			12,519			7,799
Loans, net of deferred costs		1,208,548			1,240,608			1,263,346
Less: Allowance for loan losses		(28,401	)		(37,744	)		(38,447	)
Net Loans		1,180,147			1,202,864			1,224,899
Bank premises and equipment, net		34,599			36,045			36,689
Other real estate owned		23,702			25,697			32,406
Other intangible assets		2,501			3,137			3,348
Other assets		50,536			62,713			57,591
	$	2,051,037		$	2,016,381		$	2,014,405
Liabilities and Shareholders’ Equity
Liabilities
Deposits
Demand deposits (noninterest bearing)	$	324,256		$	289,621		$	276,739
Savings deposits		847,515			812,625			814,098
Other time certificates		257,486			281,681			287,406
Brokered time certificates		5,252			7,093			11,788
Time certificates of $100,000 or more		226,765			246,208			246,999
Total Deposits		1,661,274			1,637,228			1,637,030
Federal funds purchased and securities sold under agreements to repurchase, maturing within 30 days		106,562			98,213			62,522
Borrowed funds		50,000			50,000			50,000
Subordinated debt		53,610			53,610			53,610
Other liabilities		8,798			11,031			31,648
		1,880,244			1,850,082			1,834,810
Shareholders’ Equity
Preferred stock — Series A		47,185			46,248			45,936
Common stock		9,470			9,349			9,345
Additional paid in capital		221,797			221,522			221,426
Accumulated deficit		(115,764	)		(112,652	)		(102,134	)
Treasury stock		(6	)		(1	)		(1	)
		162,682			164,466			174,572
Accumulated other comprehensive gain, net		8,111			1,833			5,023
Total Shareholders’ Equity		170,793			166,299			179,595
	$	2,051,037		$	2,016,381		$	2,014,405
Common Shares Outstanding		94,696,906			93,487,581			93,452,708

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)	Third			Second			First			Fourth			Months
Net income (loss)	$	2,648		$	1,113		$	358		$	(10,205	)	$	(6,086	)
Operating Ratios
Return on average assets-GAAP basis (2),(3)		0.51	%		0.21	%		0.07	%		(2.01	)%		(0.30	)%
Return on average tangible assets (2),(3),(4)		0.54			0.24			0.10			(1.99	)		(0.27	)
Return on average shareholders’ equity-GAAP basis (2),(3)		6.33			2.68			0.88			(23.31	)		(3.63	)
Net interest margin (1),(2)		3.44			3.36			3.48			3.42			3.42
Average equity to average assets		8.07			7.98			8.14			8.63			8.20
Credit Analysis
Net charge-offs	$	2,830		$	4,024		$	4,031		$	4,678		$	15,563
Net charge-offs to average loans		0.94	%		1.32	%		1.32	%		1.47	%		1.27	%
Loan loss provision	$	0		$	902		$	640		$	3,975		$	5,517
Allowance to loans at end of period		2.35	%		2.63	%		2.80	%		3.04	%
Restructured Loans (accruing)	$	72,751			60,238			76,935			66,350
Nonperforming loans	$	32,627			46,165			66,233			68,284
Other real estate owned		23,702			25,877			24,111			25,697
Nonperforming assets	$	56,329		$	72,042		$	90,344		$	93,981
Nonperforming assets to loans and other real estate owned at end of period		4.57	%		5.93	%		7.23	%		7.42	%
Nonperforming assets to total assets		2.75			3.46			4.34			4.66
Nonaccrual loans and accruing loans 90 days or more past due to loans outstanding at end of period		2.70			3.88			5.41			5.50
Per Share Common Stock
Net income (loss) diluted-GAAP basis	$	0.02		$	0.00		$	(0.01	)	$	(0.12	)	$	(0.11	)
Net income (loss) basic-GAAP basis		0.02			0.00			(0.01	)		(0.12	)	$	(0.11	)
Cash dividends declared		—			—			—			—		$	—
Book value per share common		1.31			1.33			1.28			1.28
Average Balances
Total assets	$	2,054,856		$	2,083,858		$	2,030,045		$	2,013,405
Less: Intangible assets		2,605			2,816			3,027			3,239
Total average tangible assets	$	2,052,251		$	2,081,042		$	2,027,018		$	2,010,166
Total equity	$	165,845		$	166,342		$	165,148		$	173,707
Less: Intangible assets		2,605			2,816			3,027			3,239
Total average tangible equity	$	163,240		$	163,526		$	162,121		$	170,468

(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.

	September 30,		December 31,		September 30,
SECURITIES	2011		2010		2010
U.S. Treasury and U.S. Government Agencies	$	4,226	$	4,212	$	4,226
Mortgage-backed		603,089		426,477		417,914
Obligations of states and political subdivisions		1,158		1,709		1,756
Other securities		2,722		2,742		3,035
Securities Available for Sale		611,195		435,140		426,931
Mortgage-backed		16,117		18,963		20,752
Obligations of states and political subdivisions		7,458		7,398		2,748
Other securities		1,000		500		0
Securities Held for Investment		24,575		26,861		23,500
Total Securities	$	635,770	$	462,001	$	450,431

	September 30,		December 31,		September 30,
LOANS	2011		2010		2010
Construction and land development	$	47,653	$	79,306	$	92,149
Real estate mortgage		1,055,276		1,060,597		1,064,739
Installment loans to individuals		51,736		51,602		52,192
Commercial and financial		53,534		48,825		53,982
Other loans		349		278		284
Total Loans	$	1,208,548	$	1,240,608	$	1,263,346

AVERAGE BALANCES, YIELDS AND RATES⁽¹⁾ (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	2011												2010
	Third Quarter						Second Quarter						Third Quarter
	Average			Yield/			Average			Yield/			Average			Yield/
(Dollars in thousands)	Balance			Rate			Balance			Rate			Balance			Rate
Assets
Earning assets:
Securities:
Taxable	$	624,811			3.04	%	$	591,265			3.10	%	$	402,970			3.32	%
Nontaxable		3,392			6.72			3,518			6.48			5,463			6.81
Total Securities		628,203			3.06			594,783			3.11			408,433			3.37
Federal funds sold and other investments		127,072			0.54			163,847			0.48			259,492			0.39
Loans, net		1,197,686			5.09			1,221,388			5.09			1,291,879			5.29
Total Earning Assets		1,952,961			4.13			1,980,018			4.12			1,959,804			4.23
Allowance for loan losses		(30,666	)					(33,425	)					(40,434	)
Cash and due from banks		27,044						29,513						27,311
Premises and equipment		34,782						35,368						37,421
Other assets		70,735						72,384						78,755
	$	2,054,856					$	2,083,858					$	2,062,857
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
NOW (2)	$	394,399			0.24	%	$	392,514			0.26	%	$	395,043			0.30	%
Savings deposits		126,800			0.11			123,759			0.11			107,241			0.15
Money market accounts (2)		320,683			0.41			319,098			0.45			353,418			0.59
Time deposits		510,755			1.66			530,906			1.74			556,395			1.94
Federal funds purchased and other short term borrowings		99,311			0.27			105,134			0.27			75,085			0.29
Other borrowings		103,610			2.31			103,610			2.81			103,610			2.80
Total Interest-Bearing Liabilities		1,555,558			0.87			1,575,021			0.95			1,590,792			1.09
Demand deposits (noninterest-bearing)		322,646						330,858						278,424
Other liabilities		10,807						11,637						11,439
Total Liabilities		1,889,011						1,917,516						1,880,655
Shareholders’ equity		165,845						166,342						182,202
	$	2,054,856					$	2,083,858					$	2,062,857
Interest expense as a % of earning assets					0.69	%					0.76	%					0.89	%
Net interest income as a % of earning assets					3.44						3.36						3.35

(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.
(2)	Certain reclassifications have been made to prior years’ presentation to conform to the current year presentation.

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		3rd Qtr		3rd 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		—		—		—		—
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		6.4		0.1		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		5.5		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		11.9		1.2		4
GRAND TOTAL		$	117.2	$	96.7	$	57.6	$	47.6	$	41.1	$	32.5	$	21.3	$	14.0	$	13.2	$	12.2	$	11.9	$	1.2		4

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		3rd 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		6.4
Multifamily		24.8		17.6		16.1		14.9		14.7		12.5		6.3		6.1		6.1		5.7		5.5
		117.2		96.7		57.6		47.6		41.1		32.5		21.3		14.0		13.2		12.2		11.9
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		10.2
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		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		10.8
Individuals
Lot loans		34.0		32.4		30.7		29.3		28.9		27.4		26.3		24.4		20.8		19.4		18.6
Construction		16.2		11.8		11.1		8.5		8.7		8.2		9.1		7.1		7.3		6.7		6.4
		50.2		44.2		41.8		37.8		37.6		35.6		35.4		31.5		28.1		26.1		25.0
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		47.7
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		324.4
Fixed rate		90.8		90.6		89.5		88.6		87.6		86.0		84.1		82.6		86.6		88.8		92.8
Home equity mortgages		85.5		83.8		83.9		86.8		89.1		79.0		74.4		73.4		67.7		63.1		63.6
Home equity lines		60.3		60.1		59.7		60.1		60.1		58.8		58.4		57.7		57.4		56.9		55.1
		569.7		562.5		559.0		524.9		527.3		519.7		517.8		517.0		520.3		523.1		535.9
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		122.0
Retail trade		109.1		120.0		151.4		164.6		163.5		155.9		152.0		151.5		150.6		149.6		146.1
Land		—		—		—		—		—		—		—		—		—		—		—
Industrial		95.3		93.0		89.3		88.4		81.7		84.0		79.8		78.0		76.3		68.5		72.5
Healthcare		28.3		30.9		25.4		24.7		29.1		29.4		29.0		30.0		26.6		26.3		29.6
Churches and educational facilities		34.8		34.6		30.8		29.6		29.1		28.5		29.4		28.8		28.6		28.2		27.8
Recreation		1.7		1.4		3.3		3.0		3.0		3.0		2.9		2.9		2.8		2.8		2.7
Multifamily		27.2		31.7		35.1		29.7		25.3		23.6		23.2		22.4		14.2		16.8		15.4
Mobile home parks		3.0		5.6		5.6		5.4		5.3		2.6		2.6		2.5		2.5		2.4		2.2
Lodging		26.3		26.3		25.6		25.5		23.5		23.4		22.1		21.9		21.7		20.0		19.8
Restaurant		6.1		5.1		5.0		4.7		4.7		4.6		4.5		4.5		4.2		4.3		4.3
Agricultural		8.2		11.8		12.0		11.7		11.4		10.8		10.7		10.6		9.2		9.2		8.9
Convenience stores		23.3		23.2		22.8		22.1		22.3		21.0		18.9		18.6		20.1		20.0		19.8
Marina		18.1		18.0		5.9		15.8		15.7		22.2		22.1		21.9		21.7		21.5		21.4
Other		24.9		29.6		28.1		26.6		25.3		25.6		26.8		28.0		27.4		27.3		26.9
		546.9		572.8		584.5		584.1		571.0		562.8		546.9		543.6		527.2		516.9		519.4
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		1,055.3
Commercial & financial		75.5		71.8		66.0		61.1		62.1		49.9		54.0		48.8		51.5		48.0		53.5
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		9.2
Marine loans		26.3		26.9		26.8		26.4		25.3		27.3		19.7		19.8		19.4		20.2		21.6
Other		25.7		24.3		23.3		22.3		21.7		20.8		20.9		20.9		20.9		21.6		20.9
		71.4		69.2		66.7		64.0		61.4		61.0		52.2		51.6		50.4		51.3		51.7
Other		0.3		0.3		0.3		0.5		0.2		0.3		0.3		0.3		0.3		0.4		0.3
	$	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	$	1,208.5

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			3rd 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	)		(0.1	)
Multifamily		(2.0	)		(7.2	)		(1.5	)		(1.2	)		(0.2	)		(2.2	)		(6.2	)		(0.2	)		—			(0.4	)		(0.2	)
		(12.7	)		(20.5	)		(39.1	)		(10.0	)		(6.5	)		(8.6	)		(11.2	)		(7.3	)		(0.8	)		(1.0	)		(0.3	)
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	)		(0.1	)
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	)		(0.1	)
Individuals
Lot loans		(1.7	)		(1.6	)		(1.7	)		(1.4	)		(0.4	)		(1.5	)		(1.1	)		(1.9	)		(3.6	)		(1.4	)		(0.8	)
Construction		(4.1	)		(4.4	)		(0.7	)		(2.6	)		0.2			(0.5	)		0.9			(2.0	)		0.2			(0.6	)		(0.3	)
		(5.8	)		(6.0	)		(2.4	)		(4.0	)		(0.2	)		(2.0	)		(0.2	)		(3.9	)		(3.4	)		(2.0	)		(1.1	)
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	)		(1.5	)
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			10.1
Fixed rate		(4.7	)		(0.2	)		(1.1	)		(0.9	)		(1.0	)		(1.6	)		(1.9	)		(1.5	)		4.0			2.2			4.0
Home equity mortgages		0.7			(1.7	)		0.1			2.9			2.3			(10.1	)		(4.6	)		(1.0	)		(5.7	)		(4.6	)		0.5
Home equity lines		1.8			(0.2	)		(0.4	)		0.4			—			(1.3	)		(0.4	)		(0.7	)		(0.3	)		(0.5	)		(1.8	)
		1.9			(7.2	)		(3.5	)		(34.1	)		2.4			(7.6	)		(1.9	)		(0.8	)		3.3			2.8			12.8
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	)		2.0
Retail trade		(2.8	)		10.9			31.4			13.2			(1.1	)		(7.6	)		(3.9	)		(0.5	)		(0.9	)		(1.0	)		(3.5	)
Land		—			—			—			—			—			—			—			—			—			—			—
Industrial		0.6			(2.3	)		(3.7	)		(0.9	)		(6.7	)		2.3			(4.2	)		(1.8	)		(1.7	)		(7.8	)		4.0
Healthcare		(0.9	)		2.6			(5.5	)		(0.7	)		4.4			0.3			(0.4	)		1.0			(3.4	)		(0.3	)		3.3
Churches and educational facilities		(0.4	)		(0.2	)		(3.8	)		(1.2	)		(0.5	)		(0.6	)		0.9			(0.6	)		(0.2	)		(0.4	)		(0.4	)
Recreation		—			(0.3	)		1.9			(0.3	)		—			—			(0.1	)		—			(0.1	)		—			(0.1	)
Multifamily		—			4.5			3.4			(5.4	)		(4.4	)		(1.7	)		(0.4	)		(0.8	)		(8.2	)		2.6			(1.4	)
Mobile home parks		—			2.6			—			(0.2	)		(0.1	)		(2.7	)		—			(0.1	)		—			(0.1	)		(0.2	)
Lodging		(0.3	)		—			(0.7	)		(0.1	)		(2.0	)		(0.1	)		(1.3	)		(0.2	)		(0.2	)		(1.7	)		(0.2	)
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	)		—			(0.3	)
Convenience stores		(0.2	)		(0.1	)		(0.4	)		(0.7	)		0.2			(1.3	)		(2.1	)		(0.3	)		1.5			(0.1	)		(0.2	)
Marina		(0.1	)		(0.1	)		(12.1	)		9.9			(0.1	)		6.5			(0.1	)		(0.2	)		(0.2	)		(0.2	)		(0.1	)
Other		(0.5	)		4.7			(1.5	)		(1.5	)		(1.3	)		0.3			1.2			1.2			(0.6	)		(0.1	)		(0.4	)
		(10.8	)		25.9			11.7			(0.4	)		(13.1	)		(8.2	)		(15.9	)		(3.3	)		(16.4	)		(10.3	)		2.5
Total real estate mortgages		(8.9	)		18.7			8.2			(34.5	)		(10.7	)		(15.8	)		(17.8	)		(4.1	)		(13.1	)		(7.5	)		15.3
Commercial & financial		(7.3	)		(3.7	)		(5.8	)		(4.9	)		1.0			(12.2	)		4.1			(5.2	)		2.7			(3.5	)		5.5
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	)		(0.3	)
Marine loans		0.3			0.6			(0.1	)		(0.4	)		(1.1	)		2.0			(7.6	)		0.1			(0.4	)		0.8			1.4
Other		(0.4	)		(1.4	)		(1.0	)		(1.0	)		(0.6	)		(0.9	)		0.1			—			—			0.7			(0.7	)
		(1.5	)		(2.2	)		(2.5	)		(2.7	)		(2.6	)		(0.4	)		(8.8	)		(0.6	)		(1.2	)		0.9			0.4
Other		—			—			—			0.2			(0.3	)		0.1			—			—			—			0.1			(0.1	)
	$	(44.1	)	$	(48.3	)	$	(79.7	)	$	(107.1	)	$	(24.2	)	$	(72.7	)	$	(37.3	)	$	(22.7	)	$	(15.2	)	$	(36.5	)	$	19.6