EXHIBIT 99.1
To 8-K dated October 24, 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 NET INCOME PER SHARE OF
$0.31 FOR THE QUARTER AND $0.98 YEAR TO DATE
STUART, FL., October 24, 2006 – Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCF), a bank holding company whose principal subsidiary is Seacoast National Bank, today reported net income totaling $5,869,000 for the third quarter of 2006, a 5.5 percent increase over the same period a year ago. Diluted earnings per share (“DEPS”) for the third quarter of 2006 were $0.31, compared with $0.32 for the prior year. Year-to-date 2006 net income grew by 21.7 percent and totaled $18.2 million, compared to $14.9 million in the same period last year. Year-to-date DEPS was $0.98, which represented growth of 8.9 percent over $0.90 earned in 2005.
While earnings on a year-to-date basis were improved, results for the quarter were affected by a more challenging interest rate environment and a seasonal decline in fees related to the Company’s wealth management business and a particularly slow quarter for its marine finance business. Mortgage banking revenues also remained soft during the quarter.
Deposit pricing pressure intensified during the quarter, and deposits experienced seasonal balance declines which resulted in both an unfavorable change in deposit mix and a reduction in noninterest bearing deposit balances. We also believe that the slowdown in Florida housing activity may be affecting commercial deposit growth.
While current economic factors, including an inverted yield curve, may continue to challenge deposit growth and constrain margin expansion, seasonal factors are anticipated to be less meaningful in the coming quarter. The Company also anticipates revenues from its wealth management and marine finance businesses to show seasonal improvement over the next two quarters, consistent with past trends.
Third quarter highlights include:
•
Average loan balances grew by 12 percent annualized for the quarter and stood at $ 1.656 billion at quarter-end;
•
Net interest margin for the quarter remained strong at 4.22 percent, an increase from 4.01 percent one year earlier, although slightly below the 4.29 percent posted in the second quarter of 2006;
•
Deposit mix remained favorable compared to peers with noninterest bearing deposits to total deposits at 21.7 percent at quarter-end;
•
As in the past, the Company has no significant wholesale borrowings;
•
The loan-to-deposit ratio at quarter-end stood at 85 percent, compared with 68 percent one year earlier and 80 percent at June 30, 2006;
•
Century National Bank (acquired on April 30, 2005) was successfully integrated and rebranded into Seacoast National Bank in August 2006. This concludes all pending systems integration and rebranding activities;
•
Total noninterest expenses were reduced by $1.0 million or 5.0 percent on a linked quarter basis during the quarter (including $886,000 in reduced integration costs and other nonrecurring charges);
•
Additional opportunities arose to take advantage of potential market disruptions with announcements during the quarter by the Company’s two largest local competitors of their intent to sell to a large Ohio-based institution; and
•
During the quarter, the State of Florida and local governments concluded final negotiations that will locate three major California-based biotech research firms in the Company’s markets. These firms will use state and local funding to “seed” infrastructure development needed to attract other research firms and ancillary businesses to the State over the next few years.
“Over the past two years we have significantly improved our margins and operating performance as we have expanded our Florida footprint, which now spans 13 counties with 44 offices from Orlando to Palm Beach, including some of the fastest growing and wealthiest communities in the State. Assets have grown by 68.2 percent over the past two years and stand at $2.351 billion today,” commented Dennis S. Hudson, III, Chairman and Chief Executive Officer. “While our earnings growth has been strong over the past two years, the trends that emerged during the latest quarter slowed our progress in the near term. Although we expect some improvement related to seasonal factors in the coming quarters, headwinds related to the difficult interest rate environment and the effects of a slowing residential real estate market on economic activity generally in Florida are likely to remain with us well into next year. As reported last quarter, we have also begun a project that will critically review our overall expense structure which we believe could provide meaningful improvements to overhead in 2007 and beyond.”
Average loans, net for the quarter, increased $47.7 million, up 3.0 percent on a linked quarter basis, and increased $458.2 million or 39.0 percent from the third quarter 2005, including $204 million in loans acquired in the second quarter of 2006 with the acquisition of Big Lake National Bank. As expected, organic loan growth in the third quarter slowed from prior quarters as existing real estate construction projects were completed during the quarter and paid off. Loan growth is expected to range from 8 to 12 percent annualized in the fourth quarter 2006.
Overall credit quality remained satisfactory. During the quarter nonperforming assets grew due to the addition of a $9.6 million loan which was placed on nonaccrual. While the loan is fully secured and current as to principal and interest at September 30, 2006, the borrower is experiencing financial difficulties. It is expected that the loan will remain current as the guarantor has substantial liquid net worth, but was placed on nonaccrual in accordance with the Company’s loan policy. Third quarter 2006 net charge-offs totaled $23,000, compared to net loan recoveries of $76,000 for the second quarter of 2006 and year-to-date net recoveries totaled $133,000. After a third quarter provision for loan losses of $475,000, the Company’s loan loss allowance totaled $12.7 million or 0.77 percent of total loa ns.
The third quarter’s net interest margin of 4.22 percent represented an increase from the 4.01 percent achieved in the third quarter of 2005, but was 7 basis points lower than the second quarter 2006’s results of 4.29 percent. This decline, which was not expected, was largely attributable to margin pressure caused by a more competitive interest rate environment and a shift in deposit mix resulting from a $56.9 million decline in average noninterest bearing deposits during the quarter. The Company’s local competitors continued to aggressively increase their rates throughout the third quarter, causing additional unexpected margin compression. The Company has been and will continue to remain cautious in its pricing of its certificates of deposit as it believes the growing risk of a slowing national economy coul d produce lower short-term interest rates in the future.
Total cost of deposits was 2.29 percent, including noninterest bearing demand deposits. Our cost of deposits increased 30 basis points during the third quarter and was 97 basis points higher than the same period in 2005. The Company believes that the net interest margin is likely to remain under pressure as long as the yield curve remains inverted.
Fully taxable net interest income decreased to $23,144,000 or 3.7 percent from second quarter 2006, but was higher than last year’s third quarter by $4.1 million or 21.2 percent. The decrease in net interest income from the second quarter comes from the decline in earning assets for the reasons previously discussed and higher incremental deposit costs.
The cost for interest bearing deposits rose to 2.95 percent from 2.64 percent in the second quarter 2006. The higher interest rates and uncertain economic environment are expected to continue to pressure costs as customers seek higher yielding deposit products. Higher cost interest bearing time deposits increased $49.4 million or 9.2 percent during the third quarter 2006. Lower cost savings, NOW and money market balances decreased $56.2 million or 5.6 percent in the three months ended September 30, 2006.
Noninterest expenses totaled $18.9 million for the third quarter of 2006, a $1.0 million or 5.0 percent decrease on a linked quarter basis, of which $886,000 was related to reduced merger and other nonrecurring charges. The Company’s overhead ratio for the third quarter was 64.7 percent, compared to 61.1 percent, excluding merger and other nonrecurring charges for the second quarter of 2006. The Company has plans to complete its previously disclosed evaluation of every aspect of overhead during the fourth quarter, which we believe will produce lower operating costs in 2007 and an improved overhead ratio. We also completed our systems integration of Century National Bank and Big Lake National Bank, which have merged with Seacoast National Bank. Combining our banks and customers should have a favorable impact on our costs in the future.
Noninterest income, excluding securities losses, totaled $17.4 million for the first nine months of 2006 compared to $15.4 million in 2005, an increase of 12.7 percent. During the third quarter, wealth management fees were lower due to normal seasonal changes and were $566,000 lower when compared to the unusually strong results in the second quarter. Marine finance fees were down $390,000 compared to the second quarter, as higher fuel prices and higher interest rates dampened demand and resulted in fewer finance opportunities. Noninterest income related to mortgage production was also adversely affected by slowing residential sales and declined in the third quarter by $77,000 compared to the second quarter. Should seasonal conditions improve as expected in the fourth quarter, fees from these lines of business will b e higher than produced this quarter.
Seacoast will host a conference call on Wednesday, October 25 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: 15839500; leader: Dennis S. Hudson). Charts will be used during the conference call and may be accessed at Seacoast’s website atwww.seacoastbanking.net by selectingPresentations. A replay of the call will be available beginning the afternoon of October 25 by dialing (877) 213-9653 (domestic), using the passcode 15839500.
Seacoast Banking Corporation of Florida, with approximately $2.3 billion in assets, is one of the largest independent commercial banking organizations in Florida. Seacoast has 44 offices in South and Central Florida and is headquartered on Florida’s Treasure Coast, which is one of the wealthiest and fastest growing 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, 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 and regulatory changes; the risks of changes in interest rates on the level and composition o f deposits, loan demand, 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, 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.
- continued -
FINANCIAL HIGHLIGHTS | (Unaudited) | ||||||||||||||||||||||||||||||||||||||
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||
&nb sp; | |||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, | September 30, | September 30, | |||||||||||||||||||||||||||||||||||||
except per share data) | 2006 | 2005 | 2006 | 2005 | |||||||||||||||||||||||||||||||||||
Summary of Earnings | |||||||||||||||||||||||||||||||||||||||
Net income (GAAP) | $ | 5,869 | $ | 5,565 | $ | 18,169 | $ | 14,926 | |||||||||||||||||||||||||||||||
Merger and other nonrecurring charges | - | -- | 576 | - | |||||||||||||||||||||||||||||||||||
Earnings, excluding merger and other | |||||||||||||||||||||||||||||||||||||||
nonrecurring charges | 5,869 | 5,565 | 18,745 | 14,926 | |||||||||||||||||||||||||||||||||||
Amortization of core deposit premium | 205 | 118 | 491 | 269 | |||||||||||||||||||||||||||||||||||
Net interest rate swap (profits) losses | - | -- | - | 173 | |||||||||||||||||||||||||||||||||||
Cash operating earnings* | $ | 6,074 | $ | 5,683 | $ | 19,236 | $ | 15,368 | |||||||||||||||||||||||||||||||
Net interest income (1) | $ | 23,144 | $ | 19,091 | $ | 67,448 | $ | 52,235 | |||||||||||||||||||||||||||||||
Performance Ratios | |||||||||||||||||||||||||||||||||||||||
Return on average assets (2), (3) | |||||||||||||||||||||||||||||||||||||||
Using GAAP earnings | 0.99 | % | 1.09 | % | $ | 1.06 | % | 1.06 | % | ||||||||||||||||||||||||||||||
Using cash operating earnings* on average tangible assets | 1.05 | 1.14 | 1.15 | 1.10 | |||||||||||||||||||||||||||||||||||
Return on average | |||||||||||||||||||||||||||||||||||||||
shareholders' equity (2), (3) | |||||||||||||||||||||||||||||||||||||||
Using GAAP earnings | 11.03 | 14.59 | 12.61 | 14.94 | |||||||||||||||||||||||||||||||||||
Using cash operating earnings* on average tangible equity | 15.64 | 19.50 | 17.99 | 18.09 | |||||||||||||||||||||||||||||||||||
Net interest margin (1), (2) | 4.22 | 4.01 | 4.22 | 3.94 | |||||||||||||||||||||||||||||||||||
Per Share Data | |||||||||||||||||||||||||||||||||||||||
Net income diluted (GAAP) | $ | 0.31 | $ | 0.32 | $ | 0.98 | $ | 0.90 | |||||||||||||||||||||||||||||||
Merger and other nonrecurring charges | -- | -- | 0.03 | -- | |||||||||||||||||||||||||||||||||||
Earnings, excluding merger and other | |||||||||||||||||||||||||||||||||||||||
nonrecurring charges | 0.31 | 0.32 | 1.01 | 0.90 | |||||||||||||||||||||||||||||||||||
Amortization of core deposit premium | 0.01 | 0.01 | 0.02 | 0.02 | |||||||||||||||||||||||||||||||||||
Net interest rate swap (profits) losses | - | -- | - | 0.01 | |||||||||||||||||||||||||||||||||||
Cash operating earnings* diluted | $ | 0.32 | $ | 0.33 | $ | 1.03 | $ | 0.93 | |||||||||||||||||||||||||||||||
Net income basic (GAAP) | $ | 0.31 | $ | 0.33 | $ | 1.00 | $ | 0.92 | |||||||||||||||||||||||||||||||
Cash dividends declared | 0.15 | 0.15 | 0.45 | 0.43 |
(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 | |||||||||||
September 30, | Increase/ | ||||||||||
2006 | 2005 | (Decrease) | |||||||||
Credit Analysis | |||||||||||
Net charge-offs (recoveries) year-to-date | $ | (133) | $ | 167 | (179.6) | % | |||||
Net charge-offs (recoveries) to | |||||||||||
average loans | (0.01) | % | 0.02 | % | (150.0) | ||||||
Loan loss provision year-to-date | $ | 1,035 | $ | 987 | 4.9 | ||||||
Allowance to loans at end of period | 0.77 | % | 0.71 | % | 8.5 | ||||||
Nonperforming assets | $ | 10,437 | $ | 325 | 3,111.4 | ||||||
Nonperforming assets to loans and other | |||||||||||
real estate owned at end of period | 0.63 | % | 0.03 | % | 2,000.0 | ||||||
Selected Financial Data | |||||||||||
Total assets | $ | 2,351,297 | $ | 2,086,073 | 12.7 | ||||||
Securities – Held for sale (at fair value) | 345,971 | 404,777 | (14.5) | ||||||||
Securities – Held for investment (at amortized cost) | 137,197 | 157,369 | (12.8) | ||||||||
Net loans | 1,643,368 | 1,209,276 | 35.9 | ||||||||
Deposits | 1,957,893 | 1,778,574 | 10.1 | ||||||||
Shareholders’ equity | 208,560 | 149,526 | 39.5 | ||||||||
Book value per share | 10.99 | 8.76 | 25.5 | ||||||||
Tangible book value per share | 8.02 | 6.73 | 19.2 | ||||||||
Average shareholders' equity | |||||||||||
to average assets | 8.39 | % | 7.10 | % | 18.2 | ||||||
Average Balances (Year-to-Date) | |||||||||||
Total assets | $ | 2,295,345 | $ | 1,881,211 | 22.0 | ||||||
Less: Intangible assets | 49,686 | 19,945 | 149.1 | ||||||||
Total average tangible assets | $ | 2,245,659 | $ | 1,861,266 | 20.7 | ||||||
Total equity | $ | 192,647 | $ | 133,548 | 44.3 | ||||||
Less: Intangible assets | 49,686 | 19,945 | 149.1 | ||||||||
Total average tangible equity | $ | 142,961 | $ | 113,603 | 25.8 | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (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) | 2006 | 2005 | 2006 | 2005 | ||||||||
Interest on securities: | ||||||||||||
Taxable | $ | 5,366 | $ | 5,593 | $ | 16,883 | $ | 16,270 | ||||
Nontaxable | 97 | 15 | 206 | 51 | ||||||||
Interest and fees on loans | 30,730 | 19,560 | 82,717 | 51,394 | ||||||||
Interest on federal funds sold and other investments | 521 | 899 | 2,874 | 2,093 | ||||||||
Total Interest Income | 36,714 | 26,067 | 102,680 | 69,808 | ||||||||
| ||||||||||||
Interest on deposits | 5,366 | 2,565 | 13,542 | 6,097 | ||||||||
Interest on time certificates | 5,888 | 3,152 | 15,186 | 8,362 | ||||||||
Interest on borrowed money | 2,412 | 1,285 | 6,693 | 3,201 | ||||||||
Total Interest Expense | 13,666 | 7,002 | 35,421 | 17,660 | ||||||||
Net Interest Income | 23,048 | 19,065 | 67,259 | 52,148 | ||||||||
Provision for loan losses | 475 | 280 | 1,035 | 987 | ||||||||
Net Interest Income After Provision for Loan Losses | 22,573 | 18,785 | 66,224 | 51,161 | ||||||||
Noninterest income: | ||||||||||||
Service charges on deposit accounts | 1,866 | 1,356 | 4,909 | 3,695 | ||||||||
Trust income | 691 | 701 | 2,204 | 1,968 | ||||||||
Mortgage banking fees | 254 | 525 | 794 | 1,520 | ||||||||
Brokerage commissions and fees | 586 | 567 | 2,404 | 1,935 | ||||||||
Marine finance fees | 478 | 728 | 2,139 | 2,262 | ||||||||
Debit card income | 563 | 441 | 1,584 | 1,298 | ||||||||
Other deposit based EFT fees | 108 | 93 | 307 | 323 | ||||||||
Merchant income | 623 | 525 | 1,921 | 1,700 | ||||||||
Interest rate swap losses | -- | -- | -- | (267) | ||||||||
Other income | 402 | 343 | 1,132 | 994 | ||||||||
5,571 | 5,279 | 17,394 | 15,428 | |||||||||
Securities gains (losses), net | 2 | 34 | (84) | 78 | ||||||||
Total Noninterest Income | 5,573 | 5,313 | 17,310 | 15,506 | ||||||||
Noninterest expenses: | ||||||||||||
Salaries and wages | 7,805 | 6,123 | 22,667 | 17,053 | ||||||||
Employee benefits | 2,054 | 1,807 | 5,623 | 4,738 | ||||||||
Outsourced data processing costs | 1,746 | 1,629 | 5,675 | 4,868 | ||||||||
Occupancy expense | 1,947 | 1,346 | 5,542 | 3,738 | ||||||||
Furniture and equipment expense | 707 | 561 | 1,834 | 1,596 | ||||||||
Marketing expense | 952 | 776 | 2,795 | 2,505 | ||||||||
Legal and professional fees | 693 | 650 | 1,929 | 1,830 | ||||||||
FDIC assessments | 66 | 65 | 204 | 169 | ||||||||
Amortization of intangibles | 315 | 181 | 755 | 414 | ||||||||
Other expense | 2,602 | 2,270 | 7,848 | 6,451 | ||||||||
Total Noninterest Expenses | 18,887 | 15,408 | 54,872 | 43,362 | ||||||||
Income Before Income Taxes | 9,259 | 8,690 | 28,662 | 23,305 | ||||||||
Provision for income taxes | 3,390 | 3,125 | 10,493 | 8,379 | ||||||||
Net Income | $ | 5,869 | $ | 5,565 | $ | 18,169 | $ | 14,926 | ||||
Per share common stock: | ||||||||||||
Net income diluted | $ | 0.31 | $ | 0.32 | $ | 0.98 | $ | 0.90 | ||||
Net income basic | 0.31 | 0.33 | 1.00 | 0.92 | ||||||||
Cash dividends declared | 0.15 | 0.15 | 0.45 | 0.43 | ||||||||
Average diluted shares outstanding | 19,141,484 | 17,253,536 | 18,517,508 | 16,556,452 | ||||||||
Average basic shares outstanding | 18,767,257 | 16,856,109 | 18,142,813 | 16,175,803 | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
September 30, | December 31, | September 30, | |||||||||||
(Dollars in thousands) | 2006 | 2005 | 2005 | ||||||||||
Assets | |||||||||||||
Cash and due from banks | $ | 80,249 | $ | 67,373 | $ | 98,478 | |||||||
Federal funds sold and other investments | 14,096 | 153,120 | 125,769 | ||||||||||
Total Cash and Cash Equivalents | 94,345 | 220,493 | 224,247 | ||||||||||
Securities: |
|
| |||||||||||
Held for sale (at fair value) | 345,971 | 392,952 | 404,777 | ||||||||||
Held for investement (at amortized cost) | 137,197 | 150,072 | 157,369 | ||||||||||
Total Securities | 483,168 | 543,024 | 562,146 | ||||||||||
Loans available for sale | 3,516 | 2,440 | 8,132 | ||||||||||
Loans, net of unearned income | 1,656,061 | 1,289,995 | 1,217,919 | ||||||||||
Less: Allowance for loan losses | (12,693) | (9,006) | (8,643) | ||||||||||
Net Loans | 1,643,368 | 1,280,989 | 1,209,276 | ||||||||||
Bank premises and equipment | 36,400 | 22,218 | 21,559 | ||||||||||
Other real estate owned | -- | -- | -- | ||||||||||
Goodwill and other intangible assets | 56,394 | 33,901 | 34,461 | ||||||||||
Other assets | 34,106 | 29,109 | 26,252 | ||||||||||
$ | 2,351,297 | $ | 2,132,174 | $ | 2,086,073 | ||||||||
Liabilities and Shareholders’ Equity | |||||||||||||
Liabilities | |||||||||||||
Deposits | |||||||||||||
Demand deposits (noninterest bearing) | $ | 424,624 | $ | 472,996 | $ | 441,880 | |||||||
Savings deposits | 944,190 | 882,031 | 886,898 | ||||||||||
Other time deposits | 334,713 | 256,484 | 282,505 | ||||||||||
Time certificates of $100,000 or more | 254,366 | 172,708 | 167,291 | ||||||||||
Total Deposits | 1,957,893 | 1,784,219 | 1,778,574 | ||||||||||
Federal funds purchased and securities sold under agreements to repurchase, maturing within 30 days | 104,179 | 96,786 | 81,100 | ||||||||||
Borrowed funds | 26,516 | 45,485 | 45,556 | ||||||||||
Subordinated debt | 41,238 | 41,238 | 20,619 | ||||||||||
Other liabilities | 12,911 | 11,726 | 10,698 | ||||||||||
2,142,737 | 1,979,454 | 1,936,547 | |||||||||||
Shareholders' Equity | |||||||||||||
Preferred stock | -- | -- | -- | ||||||||||
Common stock | 1,899 | 1,710 | 1,710 | ||||||||||
Additional paid in capital | 91,309 | 46,258 | 46,193 | ||||||||||
Retained earnings | 122,145 | 112,271 | 108,898 | ||||||||||
Restricted stock awards | (3,998) | (3,447) | (3,695) | ||||||||||
Treasury stock | (90) | (218) | (325) | ||||||||||
211,265 | 156,574 | 152,781 | |||||||||||
Accumulated other comprehensive loss, net | (2,705) | (3,854) | (3,255) | ||||||||||
Total Shareholders’ Equity | 208,560 | 152,720 | 149,526 | ||||||||||
$ | 2,351,297 | $ | 2,132,174 | $ | 2,086,073 | ||||||||
Common Shares Outstanding | 18,980,329 | 17,084,315 | 17,074,287 | ||||||||||
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) | Third | Second | First | Fourth | Months | |||||||||||||||||||
Net income (GAAP) | $ | 5,869 | $ | 6,434 | $ | 5,866 | $ | 5,833 | $ | 24,002 | ||||||||||||||
Merger and other nonrecurring charges | -- | 576 | -- | -- | 576 | |||||||||||||||||||
Earnings, excluding merger and other | & nbsp; | |||||||||||||||||||||||
nonrecurring charges | 5,869 | 7,010 | 5,866 | 5,833 | 24,578 | |||||||||||||||||||
Amortization of core deposit premium | 205 | 209 | 77 | 77 | 568 | |||||||||||||||||||
Net interest rate swap (profits) losses | -- | -- | -- | -- | -- | |||||||||||||||||||
Cash operating earnings* | $ | 6,074 | $ | 7,219 | $ | 5,943 | $ | 5,910 | $ | 25,146 | ||||||||||||||
& nbsp; | ||||||||||||||||||||||||
Operating Ratios | & nbsp; | |||||||||||||||||||||||
Return on average assets (GAAP) (2),(3) | ||||||||||||||||||||||||
Using GAAP earnings | 0.99 | % | 1.07 | % | 1.13 | % | 1.10 | % | 1.07 | % | ||||||||||||||
Using cash operating earnings* on average tangible assets | 1.05 | 1.23 | 1.16 | 1.13 | 1.14 | |||||||||||||||||||
Return on average shareholders' equity (GAAP) (2),(3) | ||||||||||||||||||||||||
Using GAAP earnings | 11.03 | 12.43 | 14.98 | 14.96 | 13.11 | |||||||||||||||||||
Using cash operating earnings* on average tangible equity | 15.64 | 19.39 | 19.25 | 19.48 | 18.32 | |||||||||||||||||||
Net interest margin (1),(2) | 4.22 | 4.29 | 4.16 | 4.04 | 4.18 | |||||||||||||||||||
Average equity to average assets | 8.98 | 8.58 | 7.52 | 7.35 | 8.15 | |||||||||||||||||||
Credit Analysis | ||||||||||||||||||||||||
Net charge-offs (recoveries) | $ | 23 | $ | (76) | $ | (80) | (32) | $ | (165) | |||||||||||||||
Net charge-offs (recoveries) to average loans | 0.01 | % | (0.02) | % | (0.02) | % | (0.01) | % | (0.01) | % | ||||||||||||||
Loan loss provision | $ | 475 | $ | 280 | $ | 280 | $ | 330 | $ | 1,365 | ||||||||||||||
Allowance to loans at end of period | 0.77 | % | 0.76 | % | 0.70 | % | 0.70 | % | ||||||||||||||||
Nonperforming assets | $ | 10,437 | $ | 588 | $ | 240 | $ | 372 | ||||||||||||||||
Nonperforming assets to loans and other real estate owned at end of period | 0.63 | % | 0.04 | % | 0.02 | % | 0.03 | % | ||||||||||||||||
Nonaccrual loans and accruing loans 90 days or more past due to loans outstanding at end of period | 0.71 | 0.03 | 0.02 | 0.06 | ||||||||||||||||||||
Per Share Common Stock | ||||||||||||||||||||||||
Net income diluted (GAAP) | $ | 0.31 | $ | 0.34 | $ | 0.34 | $ | 0.34 | $ | 1.33 | ||||||||||||||
Merger and other nonrecurring charges | -- | 0.03 | -- | -- | 0.03 | |||||||||||||||||||
Earnings, excluding merger and other | ||||||||||||||||||||||||
nonrecurring charges | 0.31 | 0.37 | 0.34 | 0.34 | 1.36 | |||||||||||||||||||
Amortization of core deposit premium | 0.01 | 0.01 | -- | -- | 0.02 | |||||||||||||||||||
Net interest rate swap (profit) losses | -- | -- | -- | -- | -- | |||||||||||||||||||
Cash operating earnings* diluted | $ | 0.32 | $ | 0.38 | $ | 0.34 | $ | 0.34 | $ | 1.38 | ||||||||||||||
Net income basic (GAAP) | $ | 0.31 | $ | 0.34 | $ | 0.35 | $ | 0.35 | $ | 1.35 | ||||||||||||||
Cash dividends declared | 0.15 | 0.15 | 0.15 | 0.15 | 0.60 | |||||||||||||||||||
Book value per share | 10.99 | 10.70 | 9.09 |
| 8.94 | |||||||||||||||||||
&nb sp; | ||||||||||||||||||||||||
Average Balances | ||||||||||||||||||||||||
Total assets | $ | 2,350,862 | $ | 2,419,683 | $ | 2,112,876 | $ | 2,103,978 | ||||||||||||||||
Less: Intangible assets | 56,945 | 58,252 | 33,604 | 34,337 | ||||||||||||||||||||
Total average tangible assets | $ | 2,293,917 | $ | 2,361,431 | $ | 2,079,272 | $ | 2,069,641 | ||||||||||||||||
Total equity | $ | 211,024 | $ | 207,555 | $ | 158,787 | $ | 154,681 | ||||||||||||||||
Intangible assets | 56,945 | 58,252 | 33,604 | 34,337 | ||||||||||||||||||||
Total average tangible equity | $ | 154,079 | $ | 149,303 | $ | 125,183 | $ | 120,344 | ||||||||||||||||
(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 | September 30, 2006 | December 31, 2005 | September 30, 2005 | |||||
U.S. Treasury and U.S. Government Agencies | $ | 103,219 | $ | 71,189 | $ | 67,628 | ||
Mortgage-backed | 238,389 | 319,906 | 335,876 | |||||
Obligations of states and political subdivisions | 2,066 | -- | -- | |||||
Other securities | 2,297 | 1,857 | 1,273 | |||||
Securities Held for Sale | 345,971 | 392,952 | 404,777 | |||||
; | ||||||||
U.S. Treasury and U. S. Government Agencies | -- | 5,000 | 4,999 | |||||
Mortgage-backed | 130,567 | 143,877 | 151,174 | |||||
Obligations of states and political subdivisions | 6,630 | 1,195 | 1,196 | |||||
Securities Held for Investment | 137,197 | 150,072 | 157,369 | |||||
Total Securities | $ | 483,168 | $ | 543,024 | $ | 562,146 | ||
LOANS | September 30, 2006 | December 31, 2005 | September 30, 2005 | |||||
Construction and land development | $ | 542,601 | $ | 427,216 | $ | 417,249 | ||
Real estate mortgage | 911,630 | 680,877 | 626,794 | |||||
Installment loans to individuals | 83,235 | 82,942 | 87,458 | |||||
Commercial and financial | 117,738 | 98,653 | 86,073 | |||||
Other loans | 857 | 307 | 345 | |||||
Total Loans | $ | 1,656,061 | $ | 1,289,995 | $ | 1,217,919 | ||
AVERAGE BALANCES, YIELDS AND RATES (1) (Unaudited) | |
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
2006 | 2005 | |||||||||||||||
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 | $ | 493,810 | 4.35 | % | $ | 567,572 | 4.31 | % | $ | 603,477 | 3.71 | % | ||||
Nontaxable | 8,654 | 6.61 | 8,666 | 6.42 | 1,196 | 7.36 | ||||||||||
Total Securities | 502,464 | 4.39 | 576,238 | 4.34 | 604,673 | 3.71 | ||||||||||
Federal funds sold and other | ||||||||||||||||
investments | 38,832 | 5.32 | 86,260 | 4.73 | 107,000 | 3.33 | ||||||||||
Loans, net | 1,634,263 | 7.47 | 1,586,597 | 7.33 | 1,175,992 | 6.61 | ||||||||||
| ||||||||||||||||
Total Earning Assets | 2,175,559 | 6.71 | 2,249,095 | 6.47 | 1,887,665 | 5.48 | ||||||||||
Allowance for loan losses | (12,363) | (12,059) | (8,490) | |||||||||||||
Cash and due from banks | 74,680 | 74,788 | 67,683 | |||||||||||||
Premises and equipment | 37,162 | 32,771 | 21,397 | |||||||||||||
Other assets | 75,824 | 75,088 | 49,266 | |||||||||||||
$ | 2,350,862 | $ | 2,419,683 | $ | 2,017,521 | |||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||
NOW | $ | 208,948 | 1.72 | % | $ | 219,871 | 1.54 | % | $ | 125,211 | 0.67 | % | ||||
Savings deposits | 149,323 | 0.69 | 166,563 | 0.74 | 163,675 | 0.51 | ||||||||||
Money market accounts | 603,133 | 2.76 | 608,601 | 2.43 | 585,395 | 1.45 | ||||||||||
Time deposits | 552,589 | 4.23 | 533,577 | 3.91 | 406,813 | 3.07 | ||||||||||
Federal funds purchased and other short term borrowings | 107,401 | 4.42 | 105,140 | 4.12 | 79,167 | 2.72 | ||||||||||
Other borrowings | 67,572 | 7.14 | 67,533 | 6.68 | 64,386 | 4.57 | ||||||||||
Total Interest-Bearing Liabilities | 1,688,966 | 3.21 | 1,701,285 | 2.89 | 1,424,647 | 1.95 | ||||||||||
Demand deposits (noninterest-bearing) | 439,379 | 496,308 | 431,476 | |||||||||||||
Other liabilities | 11,493 | 14,535 | 10,099 | |||||||||||||
Total Liabilities | 2,139,838 | 2,212,128 | 1,866,222 | |||||||||||||
Shareholders' equity | 211,024 | 207,555 | 151,299 | |||||||||||||
$ | 2,350,862 | $ | 2,419,683 | $ | 2,017,521 | |||||||||||
Interest expense as a % of earning assets | 2.49 | % | 2.18 | % | 1.47 | % | ||||||||||
Net interest income as a % of earning assets | 4.22 | 4.29 | 4.01 | |||||||||||||
(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.