EXHIBIT 99.1
To 8-K dated July 25, 2006
NEWS RELEASE
SEACOAST BANKING CORPORATION OF FLORIDA
Dennis S. Hudson, III
Chairman and Chief Executive Officer
Seacoast Banking Corporation of Florida
(772) 288-6086
William R. Hahl
Executive Vice President/
Chief Financial Officer
(772) 221-2825
SEACOAST REPORTS RECORD EARNINGS AND AN
IMPROVED NET INTEREST MARGIN
FOR THE SECOND QUARTER 2006
STUART, FL., July 25, 2006 – Seacoast Banking Corporation of Florida (NASDAQ: SBCF), a bank holding company whose principal subsidiary is Seacoast National Bank, announced earnings and highlights for the quarter ending June 30, 2006, including:
•
Earnings of $0.37 diluted earnings per share (DEPS) in the second quarter of 2006, excluding $0.03 DEPS in merger and other nonrecurring charges, up nine percent linked quarter (reported GAAP earnings of $0.34 DEPS include merger and other nonrecurring charges);
•
Earnings of $0.71 DEPS for the first six months of 2006, excluding $0.03 DEPS in merger and other nonrecurring charges, up 22 percent compared to the $0.58 DEPS for the same period a year ago (reported GAAP earnings of $0.68 DEPS include merger and other nonrecurring charges);
•
Higher net interest margin and increased net interest income;
•
Excellent credit quality;
•
The successful integration of Big Lake Financial Corporation (“Big Lake”) which was acquired on April 1, 2006 and rebranding of Seacoast’s principal subsidiary; and
•
A lower overhead ratio compared to prior quarter.
“The earnings momentum continued in the second quarter driven by higher net interest income, an improved net interest margin and a better mix of earning assets,” said Seacoast Chairman and Chief Executive Officer Dennis S. Hudson, III. “We are pleased with our progress so far this year and are particularly pleased with the success of our integration with Big Lake this quarter. Next quarter we will complete our planned systems integration with our Orlando affiliate, Century National Bank. Upon completion of these important projects we plan to bring greater focus on operating efficiency improvements for the company as a whole.”
Net income for the first half of 2006 totaled $12,876,000 or $0.71 DEPS, excluding $0.03 DEPS in merger and other nonrecurring charges, up 37.5 percent compared to $9,361,000 or $0.58 DEPS for 2005. (In 2005, the Company had no merger and other nonrecurring charges in the second quarter or for the first six months.) Net income (GAAP) for the first half of 2006 totaled $12,300,000 or $0.68 DEPS.
(continued)
Cash operating earnings for the second quarter of 2006 totaled $7,219,000 or $0.38 DEPS, up $1,761,000 or 32.3 percent over the same period last year and increased $1,276,000 or 21.5 percent from the first quarter 2006. (The Company believes that cash operating earnings, excluding the impacts of noncash interest rate swap fair value changes, noncash amortization expense, the one-time merger costs related to the Big Lake acquisition, and costs associated with the name change for the Company’s primary banking subsidiary, is a better measurement of the Company’s trend in operating earnings growth. Net cash payments and receipts from the interest rate swap have been immaterial for the periods presented.)
Taxable equivalent net interest income rose to $24,030,000, or 18.5 percent from first quarter 2006, and grew by 34.5 percent from last year’s second quarter, aided by further net interest margin expansion and strong organic loan growth, as well as the Big Lake acquisition.
The Big Lake acquisition included loans of $204 million and deposits of $301 million at March 31, 2006. This, together with strong growth in all markets served by the Company, resulted in total loan growth of $466 million or 40.6 percent since June 30, 2005. At June 30, 2006, the mix of loans outstanding was: 25 percent residential mortgage loans, 60 percent commercial and commercial real estate loans, and 15 percent consumer loans.
The second quarter’s net interest margin of 4.29 percent represented an increase from the 3.91 percent achieved in the second quarter of 2005, and was higher than the first quarter 2006’s results of 4.16 percent. Continued disciplined balance sheet management, including modest deposit account rate increases, allowed the margin to climb 25 basis points over the past 6 months. Overall net interest margin was favorably impacted by approximately 8 basis points in the second quarter as a result of the application of purchase accounting to the fixed rate loan and investment portfolios acquired from Big Lake.
Average noninterest bearing deposits and savings deposits (excluding certificates of deposits) in the second quarter of 2006 increased 17.9 percent from the same quarter a year ago, with a 14.2 percent year-over-year growth in average noninterest bearing deposits. These growth rates include the impact of the average deposits acquired from Big Lake. As anticipated, deposit growth slowed in the markets affected by the hurricanes that occurred in late 2004 and 2005, as insurance and other proceeds accumulated by customers were used to repair damages. Total average organic deposit growth for the prior twelve months increased by 5.0 percent. Average time deposits (excluding Big Lake) rose 24.6 percent, and increased this component of deposits to 26 percent of total deposits (after acquisition) from 24 percent a yea r ago. The change in deposit mix and rate increases by the Federal Reserve totaling 200 basis points over the past year impacted the cost of deposits, which increased to 1.99 percent in the current quarter from 1.18 percent in the second quarter 2005.
Credit quality was outstanding in the second quarter 2006. Nonperforming assets totaled only $588,000, or 0.04 percent of loans and other real estate, representing a slight increase from the year-end total of $372,000, entirely attributable to the loans acquired from Big Lake. Second quarter 2006 net loan recoveries totaled $76,000, compared to net loan recoveries of $80,000 for the first quarter of 2006. The Company has maintained strong and consistent credit quality and low net charge-offs. After a second quarter provision for loan losses of $280,000 and the acquired Big Lake allowance for loan losses of $2.5 million, the Company’s loan loss allowance totaled $12.2 million or 0.76 percent of total loans.
Noninterest income for the quarter, excluding interest rate swap profit (losses) and securities gains (losses), increased 22.1 percent when compared to the second quarter 2005. Revenues from service charges on deposit accounts, fees from electronic fund transfers, and mortgage banking fees increased in the second quarter compared to the first quarter in 2006, mostly as a result of the acquisition. Mortgage banking fees have been impacted by slowing production due to rates increasing and intense competition during the first six months of 2006. However, the new markets, as a result of the acquisition, improved the overall production for the Company in the second quarter and, more importantly, going forward. Marine finance fees and fees from wealth management services were higher than the prior year’s second quarter with no current impact from the Big Lake acquisition.
Noninterest expenses totaled $19.9 million for the second quarter of 2006, a $3.8 million increase from the previous quarter, of which $2.8 million was related to the Big Lake acquisition including $202,000 for deposit base intangible amortization. Also included in the increase was $304,000 in nonrecurring charges and costs associated with the principal bank subsidiary’s name change during the second quarter of 2006. Of the $2.0 million increase in salaries and wages from the first quarter, $526,000 was related to higher commissions and incentives associated with costs tied directly to incremental revenue production, and $1.1 million was Big Lake salaries and wages. The Company’s overhead ratio for the second quarter, excluding merger and other nonrecurring charges, was 61.1 percent, compared to 62.5 percent for the first quarter of 2006.
Seacoast will host a conference call on Wednesday, July 26 at 10:00 a.m. (Eastern Time) to discuss the earnings results and business trends. Investors may call in (toll-free) by dialing (800) 640-9765 (access code: 15092209; leader: Dennis Hudson). Charts will be used during the conference call and may be accessed at Seacoast’s website atwww.seacoastbanking.net under “Presentations”. A replay of the call will be available beginning the afternoon of July 26 by dialing (877) 213-9653 (domestic), using the passcode 15092209.
Seacoast Banking Corporation of Florida has over $2.4 billion in assets. It is one of the largest independent commercial banking organizations in Florida and is headquartered on Florida’s Treasure Coast, one of the wealthiest and fastest growing 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 the benefits of the integration and consolidation of Seacoast with Big Lake and Century, including future financial and operating results, cost savings, enhanced revenues, and accretion to reported earnings that may be realized from the merger, as well as statements with respect to Seacoast’s and Big Lake’s plans, 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 conditions; governmental monetary and fiscal policies, as well as legislative and regulatory changes; the risks of changes in interest rates on the level and composition of deposits, loan demand, and the value s of loan collateral, securities, and interest sensitive assets and liabilities; interest rate risks and sensitivities; 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 of Seacoast, Big Lake and Century 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 Big Lake and Century’s customers by competitors; as well as the difficulties and risks inherent with entering the Central Florida market.
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, 2005 under “Special Cautionary Notice Regarding Forward-Looking Statements,” and otherwise in our SEC reports and filings. Such reports are available upon request from Seacoast, 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 per share data) | 2006 | | 2005 | | 2006 | | 2005 | |
| | | | | | | | | |
Summary of Earnings | | | | | | | | |
Net income (GAAP) | $ 6,434 | $ | 5,475 | | $ 12,300 | $ | 9,361 | |
Merger and other nonrecurring charges | 576 | | - | | 576 | | - | |
Earnings, excluding merger and other | | | | | | | | |
nonrecurring charges | 7,010 | | 5,474 | | 12,876 | | 9,361 | |
Amortization of core deposit premium | 209 | | 144 | | 286 | | 151 | |
Net interest rate swap (profits) losses | - | | (162 | ) | - | | 174 | |
Cash operating earnings* | $ 7,219 | $ | 5,458 | | $ 13,162 | $ | 9,686 | |
| | | | | | | | | |
Net interest income (1) | 24,030 | | 17,867 | | 44,304 | | 33,144 | |
| | | | | | | | | |
Performance Ratios | | | | | | | | |
Return on average assets (2), (3) | | | | | | | | |
Using GAAP earnings | 1.07 | % | 1.13 | % | 1.09 | % | 1.04 | % |
Using cash operating earnings* on average tangible assets | 1.23 | | 1.14 | | 1.19 | | 1.09 | |
Return on average | | | | | | | | |
shareholders' equity (2), (3) | | | | | | | | |
Using GAAP earnings | 12.43 | | 16.07 | | 13.53 | | 15.16 | |
Using cash operating earnings* on average tangible equity | 19.39 | | 18.88 | | 19.33 | | 17.36 | |
Net interest margin (1), (2) | 4.29 | | 3.91 | | 4.23 | | 3.90 | |
| | | | | | | | | |
Per Share Data | | | | | | | | |
Net income diluted (GAAP) | $ 0.34 | $ | 0.33 | | $ 0.68 | $ | 0.58 | |
Merger and other nonrecurring charges | 0.03 | | - | | 0.03 | | - | |
Earnings, excluding merger and other | | | | | | | | |
Nonrecurring charges | 0.37 | | 0.33 | | 0.71 | | 0.58 | |
Amortization of core deposit premium | 0.01 | | 0.01 | | 0.01 | | 0.01 | |
Net interest rate swap (profits) losses | - | | (0.01 | ) | - | | 0.01 | |
Cash operating earnings* diluted | $ 0.38 | $ | 0.33 | | $ 0.72 | $ | 0.60 | |
Net income basic (GAAP) | 0.34 | | 0.33 | | 0.69 | | 0.59 | |
Cash dividends declared | 0.15 | | 0.14 | | 0.30 | | 0.28 | |
(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 calculations 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.
*
The Company believes that cash operating earnings excluding the impacts of noncash interest rate swap fair value changes, noncash amortization expense and the one-time merger costs related to the Big Lake acquisition which was completed on April 3, 2006, and costs associated with the name change announced for the Company’s primary banking subsidiary is a better measurement of the Company’s trend in operating earnings growth. Net cash payments and receipts from the interest rate swap have been immaterial for the periods presented.
FINANCIAL HIGHLIGHTS | (Unaudited) | | | | | | | |
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | | |
| | | | | | | | | |
| | | | June 30, | | Increase/ |
| | | | 2006 | | 2005 | | (Decrease) |
Credit Analysis | | | | | | | | |
Net charge-offs (recoveries) year-to-date | | $ | (156 | ) $ | 202 | | (177.2 | )% |
Net charge-offs (recoveries) to | | | | | | | | |
average loans | | | (0.02 | )% | 0.04 | % | (150.0 | )% |
Loan loss provision year-to-date | | | 560 | | 707 | | (20.8 | ) |
Allowance to loans at end of period | | 0.76 | % | 0.73 | % | 4.1 | |
Nonperforming assets | | $ | 588 | $ | 200 | | 194.0 | |
Nonperforming assets to loans and other | | | | | | | | |
real estate owned at end of period | | | 0.04 | % | 0.02 | % | 100.0 | |
| | | | | | | | | |
Selected Financial Data | | | | | | | | |
Total assets | | $ | 2,415,242 | $ | 2,052,175 | | 17.7 | |
Securities – Held for sale (at fair value) | | | 367,766 | | 461,685 | | (20.3 | ) |
Securities – Held for investment (at amortized cost) | | | 141,734 | | 170,573 | | (16.9 | ) |
Net loans | | | 1,602,405 | | 1,140,045 | | 40.6 | |
Deposits | | | 2,028,605 | | 1,743,895 | | 16.3 | |
Shareholders’ equity | | | 202,843 | | 146,877 | | 38.1 | |
Book value per share | | | 10.70 | | 8.63 | | 24.0 | |
Tangible book value per share | | | 7.68 | | 6.53 | | 17.6 | |
Average shareholders' equity | | | | | | | | |
to average assets | | | 8.09 | % | 6.87 | % | 17.8 | |
| | | | | | | | | |
Average Balances (Year-to-Date) | | | | | | | | |
Total assets | | $ | 2,267,127 | $ | 1,811,927 | | 25.1 | |
Less: Intangible assets | | | 45,996 | | 11,950 | | 284.9 | |
Total average tangible assets | | $ | 2,221,131 | $ | 1,799,977 | | 23.4 | |
| | | | | | | | | |
Total equity | | $ | 183,306 | $ | 124,525 | | 47.2 | |
Less: Intangible assets | | | 45,996 | | 11,950 | | 284.9 | |
Total average tangible equity | | $ | 137,310 | $ | 112,575 | | 22.0 | |
| | | | | | | | | |
| | | | | | | | | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (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) | 2006 | | 2005 | | 2006 | | 2005 |
| | | | | | | | | |
Interest on securities: | | | | | | | | |
Taxable | $ | 6,120 | $ | 5,707 | $ | 11,517 | $ | 10,677 |
Nontaxable | | 94 | | 18 | | 109 | | 36 |
Interest and fees on loans | 28,976 | | 17,348 | | 51,987 | | 31,834 |
Interest on federal funds sold and interest bearing deposits | 1,018 | | 774 | | 2,353 | | 1,194 |
Total Interest Income | 36,208 | | 23,847 | | 65,966 | | 43,741 |
| | | | | | | | |
Interest on deposits | | 4,837 | | 2,090 | | 8,176 | | 3,532 |
Interest on time certificates | 5,206 | | 2,797 | | 9,298 | | 5,210 |
Interest on borrowed money | 2,203 | | 1,121 | | 4,281 | | 1,916 |
Total Interest Expense | 12,246 | | 6,008 | | 21,755 | | 10,658 |
| | | | | | | | | |
Net Interest Income | 23,962 | | 17,839 | | 44,211 | | 33,083 |
Provision for loan losses | 280 | | 269 | | 560 | | 707 |
Net Interest Income After Provision for Loan Losses | 23,682 | | 17,570 | | 43,651 | | 32,376 |
| | | | | | | | | |
Noninterest income: | | | | | | | | |
Service charges on deposit accounts | 1,801 | | 1,246 | | 3,043 | | 2,339 |
Trust income | | 801 | | 684 | | 1,513 | | 1,267 |
Mortgage banking fees | 331 | | 425 | | 540 | | 995 |
Brokerage commissions and fees | 1,042 | | 634 | | 1,818 | | 1,368 |
Marine finance fees | 868 | | 836 | | 1,661 | | 1,534 |
Debit card income | 558 | | 441 | | 1,021 | | 857 |
Other deposit based EFT fees | 102 | | 109 | | 199 | | 230 |
Merchant income | 619 | | 605 | | 1,298 | | 1,175 |
Interest rate swap profits (losses) | 0 | | 249 | | 0 | | (267) |
Other income | | 397 | | 359 | | 730 | | 651 |
| | | 6,519 | | 5,588 | | 11,823 | | 10,149 |
Securities gains (losses) | (97 | ) | 41 | | (86 | ) | 44 |
Total Noninterest Income | 6,422 | | 5,629 | | 11,737 | | 10,193 |
| | | | | | | | | |
Noninterest expenses: | | | | | | | | |
Salaries and wages | | 8,443 | | 5,640 | | 14,862 | | 10,930 |
Employee benefits | | 1,769 | | 1,499 | | 3,569 | | 2,931 |
Outsourced data processing | | 2,180 | | 1,680 | | 3,929 | | 3,239 |
Occupancy expense | | 2,062 | | 1,244 | | 3,595 | | 2,392 |
Furniture and equipment expense | 591 | | 520 | | 1,127 | | 1,035 |
Marketing expense | | 926 | | 853 | | 1,843 | | 1,729 |
Legal and professional fees | 699 | | 639 | | 1,236 | | 1,180 |
FDIC assessments | | 79 | | 60 | | 138 | | 104 |
Amortization of intangibles | | 321 | | 222 | | 440 | | 233 |
Other expense | | 2,806 | | 2,285 | | 5,246 | | 4,181 |
Total Noninterest Expenses | 19,876 | | 14,642 | | 35,985 | | 27,954 |
| | | | | | | | | |
Income Before Income Taxes | 10,228 | | 8,557 | | 19,403 | | 14,615 |
Provision for income taxes | 3,794 | | 3,082 | | 7,103 | | 5,254 |
| | | | | | | | | |
Net Income | $ | 6,434 | $ | 5,475 | $ | 12,300 | $ | 9,361 |
| | | | | | | | | |
Per share common stock: | | | | | | | | |
Net income diluted | $ | 0.34 | $ | 0.33 | $ | 0.68 | $ | 0.58 |
Net income basic | | 0.34 | | 0.33 | | 0.69 | | 0.59 |
Cash dividends declared | | 0.15 | | 0.14 | | 0.30 | | 0.28 |
| | | | | | | | | |
Average diluted shares outstanding | 19,103,077 | | 16,706,162 | | 18,200,400 | | 16,202,134 |
Average basic shares outstanding | 18,727,475 | | 16,345,301 | | 17,825,416 | | 15,830,012 |
| | | | | | | | | |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
| | | | | | | | &n bsp; |
| | | June 30, | | December 31, | | June 30, | |
(Dollars in thousands) | | 2006 | | 2005 | | 2005 | |
| | | | | | | | |
Assets | | | | | | | |
Cash and due from banks | | $70,177 | $ | 67,373 | $ | 75,949 | |
Federal funds sold and interest bearing deposits | | 100,514 | | 153,120 | | 116,600 | |
Total Cash and Cash Equivalents | | 170,691 | | 220,493 | | 192,549 | |
Securities: | | | | | | | |
Held for sale (at fair value) | | 367,766 | | 392,952 | | 461,685 | |
Held for investement (at amortized cost) | | 141,734 | | 150,072 | | 170,573 | |
Total Securities | | 509,500 | | 543,024 | | 632,258 | |
| | | | | | | | |
Loans available for sale | | 3,362 | | 2,440 | | 5,887 | |
| | | | | | | | |
Loans, net of unearned income | | 1,614,646 | | 1,289,995 | | 1,148,373 | |
Less: Allowance for loan losses | | (12,241) | | (9,006) | | (8,328) | |
Net Loans | | 1,602,405 | | 1,280,989 | | 1,140,045 | |
| | | | | | | | |
Bank premises and equipment | | 37,320 | | 22,218 | | 21,166 | |
Other real estate owned | | 139 | | 0 | | 0 | |
Goodwill and other intangible assets | | 57,149 | | 33,901 | | 35,687 | |
Other assets | | 34,676 | | 29,109 | | 24,583 | |
| | | $2,415,242 | $ | 2,132,174 | $ | 2,052,175 | |
Liabilities and Shareholders’ Equity | | | | | | | |
Liabilities | | | | | | | |
Deposits | | | | | | | |
Demand deposits (noninterest bearing) | | $488,535 | $ | 472,996 | $ | 481,206 | |
Savings deposits | | 1,000,385 | | 882,031 | | 860,405 | |
Other time deposits | | 312,209 | | 256,484 | | 260,757 | |
Time certificates of $100,000 or more | | 227,476 | | 172,708 | | 141,527 | |
Total Deposits | | 2,028,605 | | 1,784,219 | | 1,743,895 | |
| | | | | | | | |
Federal funds purchased and securities sold under agreements to repurchase, maturing within 30 days | | 104,941 | | 96,786 | | 87,742 | |
Borrowed funds | | 26,218 | | 45,485 | | 43,854 | |
Subordinated debt | | 41,238 | | 41,238 | | 20,619 | |
Other liabilities | | 11,397 | | 11,726 | | 9,188 | |
| | | 2,212,399 | | 1,979,454 | | 1,905,298 | |
| | | | | | | | |
Shareholders' Equity | | | | | | | |
Preferred stock | | 0 | | 0 | | 0 | |
Common stock | | 1,897 | | 1,710 | | 1,710 | |
Additional paid in capital | | 90,998 | | 46,258 | | 46,169 | |
Retained earnings | | 119,108 | | 112,271 | | 106,008 | |
Restricted stock awards | | (4,001 | ) | (3,447) | | (3,702) | |
Treasury stock | | (121 | ) | (218) | | (913) | |
| | | 207,881 | | 156,574 | | 149,272 | |
Accumulated other comprehensive loss | | (5,038 | ) | (3,854 | ) | (2,395) | |
Total Shareholders’ Equity | | 202,843 | | 152,720 | | 146,877 | |
| | | $2,415,242 | $ | 2,132,174 | $ | 2,052,175 | |
| | | | | | | | |
Common Shares Outstanding | | 18,958,534 | | 17,084,315 | | 17,023,513 | |
| | | | | | | | |
Note: The balance sheet at December 31, 2005 has been derived from the audited financial statements at that date.
CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited) | | | | | |
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |
| | Quarters | | | |
| | 2006 | | 2005 | | | Last 12 |
(Dollars in thousands, except per share data) | Second | First | Fourth | | Third | | Months |
Net income (GAAP) | $ | 6,434 | $ 5,866 | | $5,833 | | $ 5,565 | $ | 23,698 | |
Merger and other nonrecurring charges | 576 | -- | | -- | | -- | | 576 | |
Earnings, excluding merger and other | | | | | | | | | |
nonrecurring charges | 7,010 | 5,866 | | 5,833 | | 5,565 | | 24,274 | |
Amortization of core deposit premium | 209 | 77 | | 77 | | 118 | | 481 | |
Net interest rate swap (profits) losses | -- | -- | | -- | | -- | | -- | |
Cash operating earnings* | $ | 7,219 | $ 5,943 | | $5,910 | | $ 5,683 | $ | 24,755 | |
Operating Ratios | | | | | | | | | |
Return on average assets (GAAP) (2),(3) | | | | | | | | | |
Using GAAP earnings | 1.07% | 1.13% | | 1.10 | % | 1.09 | % | 1.08 | % |
Using cash operating earnings* on average tangible assets | 1.23 | 1.16 | | 1.13 | | 1.14 | | 1.17 | |
Return on average shareholders' equity (GAAP) (2),(3) | | | | | | | | | |
Using GAAP earnings | 12.43 | 14.98 | | 14.96 | | 14.59 | | 13.87 | |
Using cash operating earnings* on average tangible equity | 19.39 | 19.25 | | 19.48 | | 19.50 | | 19.41 | |
Net interest margin (1),(2) | 4.29 | 4.16 | | 4.04 | | 4.01 | | 4.01 | |
Average equity to average assets | 8.58 | 7.52 | | 7.35 | | 7.50 | | 7.77 | |
Credit Analysis | | | | | | | | | |
Net charge-offs (recoveries) | $ (76) | $(80) | | $ (32) | | (35) | | | $ (233) | |
Net charge-offs (recoveries) to average loans | (0.02) % | (0.02)% | | (0.01) | % | (0.01) | % | (0.02) | % |
Loan loss provision | $ 280 | $280 | | $ 330 | | $ 280 | | $ 1,170 | |
Allowance to loans at end of period | 0.76% | 0.70% | | 0.70 | % | 0.71 | % | | |
Nonperforming assets |
$ 588 | $240 | | $ 372 | | $ 325 | | | |
Nonperforming assets to loans and other real estate owned at end of period | 0.04% | 0.02% | | 0.03 | % | 0.03 | % | | |
Nonaccrual loans and accruing loans 90 days or more past due to loans outstanding at end of period | 0.03 | 0.02 | | 0.06 | | 0.03 | | | |
Per Share Common Stock | | | | | | | | | |
Net income diluted (GAAP) | $ 0.34 | $0.34 | | $ 0.34 | | $ 0.32 | $ | 1.34 | |
Merger and other nonrecurring charges | 0.03 | -- | | -- | | -- | | 0.03 | |
Earnings, excluding merger and other | | | | | | | | | |
nonrecurring charges | 0.37 | 0.34 | | 0.34 | | 0.32 | | 1.37 | |
Amortization of core deposit premium | 0.01 | -- | | -- | | 0.01 | | 0.02 | |
Net interest rate swap (profit) losses | -- | -- | | -- | | -- | | -- | |
Cash operating earnings* diluted | $ | 0.38 | $0.34 | | $ 0.34 | | $ 0.33 | $ | 1.39 | |
| | | | | | | | | | |
Net income basic (GAAP) | | 0.34 | 0.35 | | 0.35 | | 0.33 | | 1.37 | |
Cash dividends declared | 0.15 | 0.15 | | 0.15 | | 0.15 | | 0.60 | |
Book value per share | 10.70 | 9.09 | | 8.94 | | 8.76 | | | |
Average Balances | | | | | | | | | |
Total assets | $ | 2,419,683 | $2,112,876 | | $2,103,978 | $ | 2,017,521 | | | |
Less: Intangible assets | 58,252 | 33,604 | | 34,337 | | 35,676 | | | |
Total average tangible assets | $ | 2,361,431 | $2,079,272 | | $2,069,641 | $ | 1,981,845 | | | |
| | | | | | | | | | |
Total equity | $ | 207,555 | $158,787 | | $154,681 | $ | 151,299 | | | |
Intangible assets | 58,252 | 33,604 | | 34,337 | | 35,676 | | | |
Total average tangible equity | $ | 149,303 | $125,183 | | 120,344 | $ | 115,623 | | | |
| | | | | | | | | | |
(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 calculations 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.
*
The Company believes that cash operating earnings excluding the impacts of noncash interest rate swap fair value changes, noncash amortization expense and the one-time merger costs related to the Big Lake acquisition which was completed on April 3, 2006, and costs associated with the name changes announced for the Company’s primary banking subsidiary is a better measurement of the Company’s trend in operating earnings growth. Net cash payments and receipts from the interest rate swap have been immaterial for the periods presented.
CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited) (continued) |
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
(Dollars in thousands)
SECURITIES | | | June 30, 2006 | | December 31, 2005 | | June 30, 2005 |
U.S. Treasury and U.S. Government Agencies | | $ | 106,266 | $ | 71,189 | $ | 78,682 |
Mortgage-backed | | | 257,639 | | 319,906 | | 382,196 |
Obligations of states and political subdivisions | | | 2,020 | | 0 | | 114 |
Other securities | | | 1,841 | | 1,857 | | 693 |
Securities Held for Sale | | | 367,766 | | 392,952 | | 461,685 |
| | | | | | | | |
U.S. Treasury and U. S. Government Agencies | | | 0 | | 5,000 | | 4,999 |
Mortgage-backed | | | 135,101 | | 143,877 | | 164,152 |
Obligations of states and political subdivisions | | | 6,633 | | 1,195 | | 1,422 |
Securities Held for Investment | | | 141,734 | | 150,072 | | 170,573 |
Total Securities | | $ | 509,500 | $ | 543,024 | $ | 632,258 |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
LOANS | | | June 30, 2006 | December 31, 2005 | | June 30, 2005 |
| | | | | | | | |
Construction and land development | | $ | 511,480 | $ | 427,216 | $ | 351,457 |
Real estate mortgage | | | 893,950 | | 680,877 | | 620,883 |
Installment loans to individuals | | | 87,408 | | 82,942 | | 89,791 |
Commercial and financial | | | 121,330 | | 98,653 | | 85,746 |
Other loans | | | 478 | | 307 | | 496 |
Total Loans | | $ | 1,614,646 | $ | 1,289,995 | $ | 1,148,373 |
| | | | | | | | |
AVERAGE BALANCES, YIELDS AND RATES (1) (Unaudited) |
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |
| | | 2006 | | 2005 |
| | | 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 | $ | 567,572 | 4.31 | % | $ | 535,790 | 4.03 | % | $ | 633,258 | 3.60 | % |
Nontaxable | | 8,666 | 6.42 | | 1,195 | 7.70 | | 1,423 | 7.59 | |
Total Securities | | 576,238 | 4.34 | | 536,985 | 4.04 | | 634,681 | 3.61 | |
| | | | | | | | | | | |
Federal funds sold and other | | | | | | | | | | |
investments | | 86,260 | 4.73 | | 121,592 | 4.45 | | 106,756 | 2.91 | |
| | | | | | | | | | | |
Loans, net | | 1,586,597 | 7.33 | | 1,318,291 | 7.08 | | 1,091,628 | 6.38 | |
| | | | | | | | | | |
Total Earning Assets | | 2,249,095 | 6.47 | | 1,976,868 | 6.11 | | 1,833,065 | 5.22 | |
| | | | | | | | | | | |
Allowance for loan losses | | (12,059 | ) | | (9,184 | ) | | (7,778 | ) | |
Cash and due from banks | | 74,788 | | | 71,065 | | | 63,988 | | |
Premises and equipment | | 32,771 | | | 23,432 | | | 21,008 | | |
Other assets | | 75,088 | | | 50,695 | | | 34,796 | | |
| | | | | | | | | | | |
| | $ | 2,419,683 | | $ | 2,112,876 | | $ | 1,945,079 | | |
| | | | | | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | |
NOW | $ | 219,871 | 1.54 | % | $ | 138,604 | 0.97 | % | $ | 105,678 | 0.57 | % |
Savings deposits | | 166,563 | 0.74 | | 145,094 | 0.51 | | 171,715 | 0.50 | |
Money market accounts | | 608,601 | 2.43 | | 593,403 | 1.93 | | 553,134 | 1.25 | |
Time deposits | | 533,577 | 3.91 | | 451,223 | 3.68 | | 393,308 | 2.85 | |
Federal funds purchased and other short term borrowings | | 105,140 | 4.12 | | 109,206 | 3.80 | | 81,178 | 2.36 | |
Other borrowings | | 67,533 | 6.68 | | 72,596 | 5.90 | | 60,505 | 4.27 | |
| | | | | | | | | | | |
Total Interest-Bearing Liabilities | | 1,701,285 | 2.89 | | 1,510,126 | 2.55 | | 1,365,518 | 1.76 | |
| | | | | | | | | | | |
Demand deposits (noninterest-bearing) | | 496,308 | | | 434,692 | | | 434,777 | | |
Other liabilities | | 14,535 | | | 9,271 | | | 8,125 | | |
Total Liabilities | | 2,212,128 | | | 1,954,089 | | | 1,808,420 | | |
| | | | | | | | | | | |
Shareholders' equity | | 207,555 | | | 158,787 | | | 136,659 | | |
| | | | | | | | | | | |
| | $ | 2,419,683 | | | 2,112,876 | | | 1,945,079 | | |
| | | | | | | | | | | |
Interest expense as a % of earning assets | | | 2.18 | % | | 1.95 | % | | 1.31 | % |
Net interest income as a % of earning assets | | | 4.29 | | | 4.16 | | | 3.91 | |
| | | | | | | | | | | |
(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.
