EXHIBIT 99.3
To 8-K dated January 25, 2007
Seacoast Banking Corporation of Florida
Fourth Quarter 2006 Financial Highlights
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 mergers, as well as statements with respect to Seacoast, Big Lake and Century’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.
Capitalizing on Market Disruption
Treasue Coast Market
| | | Martin | | St. Lucie | | Indian River | | Total Offices |
| | | Deposits | Offices | | Deposits | Offices | | Deposits | Offices | | |
Seacoast | | 755,626 | 11 | | 285,461 | 8 | | 230,440 | 8 | | 27 |
National City | | 383,569 | 8 | | 883,844 | 11 | | 37,513 | 6 | | 25 |
Wachovia | | 533,193 | 10 | | 500,517 | 7 | | 1,383,533 | 10 | | 27 |
Bank of America | | 558,301 | 10 | | 432,575 | 8 | | 364,071 | 6 | | 24 |
SunTrust | | 139,616 | 3 | | 295,704 | 5 | | 251,832 | 6 | | 14 |
Riverside | | 151,346 | 3 | | 998,661 | 8 | | 169,781 | 4 | | 15 |
Alabama National | | -- | | | -- | | | 403,496 | 5 | | 5 |
Over $1.5 billion in local community bank deposits will transfer to Cleveland
Source: SNL Financial June 2006
Capitalizing on Market Disruption
Local Community Banks in Treasure Coast Market |
| | | Deposits | | Offices |
Seacoast | | 1,271,527 | | 27 |
Riverside | | 1,319,788 | | 15 |
Gulfstream | | 268,166 | | 2 |
Peoples Bank | | 134,523 | | 3 |
First Bank of Indiantown | 68,545 | | 2 |
Marine Bank | | 89,754 | | 2 |
Source: SNL Financial June 2006
Total Revenues Increase
(Dollars in thousands) | QTR4 06 | QTR4 05 | Growth | % Growth |
Net Interest Income | $ 21,846 | $ 20,062 | $ 1,784 | 8.9 | % |
Noninterest Income | 5,719 | 5,089 | 630 | 12.4 | |
Total Revenues | $ 27,565 | $ 25,151 | $ 2,414 | 9.6 | % |
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Dollars in Thousands; Excludes Provision for Loan Losses, Interest Rate Swap Profits (Losses), Gains on Sale of Partnership Interest and Securities Gains (Losses)
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Calculated on a Fully Taxable Equivalent Basis
Overhead Ratio
| | Q4-04 | | | |
Overhead Ratio | 65.0% | | | |
| | | | | |
| | Q1-05 | Q2-05 | Q3-05 | Q4-05 |
Overhead Ratio | 65.4% | 62.1% | 62.5% | 62.1% |
| | | | | |
| | Q1-06 | Q2-06 | Q3-06 | Q4-06 |
Overhead Ratio | 62.5% | 61.1% | 64.7% | 64.8% |
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Noninterest Income Excludes Security Gains (Losses), Gain on Sale of Partnership Interest and Interest Rate Swap Profits (Losses)
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Noninterest Expense Excludes Merger/Nonrecurring Charges and Non-cash Core Deposit Intangible Amortization
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Net Interest Income is included on a Tax Equivalent Basis
Loan Growth
Loan Growth Remains Strong at a 19% Growth Rate Year over Year, Excluding Big Lake Loans of $197 Million
(Dollars in thousands) | Q4-2005 | Q1-2006 | Q2-2006 | Q3-2006 | Q4-2006 |
Loans, net of unearned income | $1,289,995 | $1,339,070 | $1,614,646 | $1,656,061 | 1,733,111 |
Commercial Lending Originations
(Dollars in thousands) | Q4-2005 | Q1-2006 | Q2-2006 | Q3-2006 | Q4-2006 |
Commercial Originations* | $112,000 | $117,000 | $106,000 | $80,000 | $140,000 |
* Includes Commercial Real Estate
Deposit Performance
Deposits Decline 8.4% Over Last Twelve Months, Excluding Big Lake Deposits of $256 Million
(Dollars in millions) | Q4-04 | | | |
Core Deposits | 907 | | | |
Time Deposits > $100,000 | 120 | | | |
DDA | 345 | | | |
| | | | | |
(Dollars in millions) | Q1-05 | Q2-05 | Q3-05 | Q4-05 |
Core Deposits | 976 | 1,120 | 1,170 | 1,138 |
Time Deposits > $100,000 | 133 | 142 | 167 | 173 |
DDA | 367 | 482 | 442 | 473 |
| | | | | |
(Dollars in millions) | Q1-06 | Q2-06 | Q3-06 | Q4-06(1) |
Core Deposits * | 1,170 | 1,313 | 1,279 | 1,255 |
Time Deposits >$100,000 | 193 | 227 | 254 | 244 |
DDA | 441 | 489 | 425 | 392 |
*Includes Time Deposits < $100,000
(1) DDA Mix 21%
Deposit Mix
| | QTR2 06 | | QTR3 06 | | QTR4 06 | |
Demand | 24 | % | 22 | % | 21 | % |
Core * | 65 | | 65 | | 66 | |
Time Deposits > $100,000 | 11 | | 13 | | 13 | |
Total | 100 | % | 100 | % | 100 | % |
*Includes Time Deposits < $100,000
Cost of Deposits
| Q1-05 | Q2-05 | Q3-05 | Q4-05 |
Fed Funds Rate | 2.75% | 3.25% | 3.75% | 4.25% |
Cost of Deposits | 1.09% | 1.18% | 1.32% | 1.54% |
| | | | | |
| Q1-06 | Q2-06 | Q3-06 | Q4-06 |
Fed Funds Rate | 4.75% | 5.25% | 5.25% | 5.25% |
Cost of Deposits | 1.71% | 1.99% | 2.29% | 2.54% |
Average Earning Asset Growth
(Dollars in billions) | Q1-05 | Q2-05 | Q3-05 | Q4-05 |
Average Earning Assets | $1.59 | $1.83 | $1.89 | $1.97 |
(Dollars in billions) | Q1-06 | Q2-06 | Q3-06 | Q4-06 |
Average Earning Assets | $1.98 | $2.25 | $2.18 | $2.19 |
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Average loans represent 77% of earning assets at December 31, 2006, compared to 63% at December 31, 2005 and 60% at December 31, 2004
Prime Based Loans
(Dollars in thousands) | Q4-05 | Q1-06 | Q2-06 | Q3-06 | Q4-06 |
Prime Based Loans | $416,000 | $426,000 | $496,000 | $507,000 | $528,000 |
Total Floating Rate Assets
Floating Rate Assets (Loans, Investments, and Overnight Funds)
(Dollars in thousands) | Q4-05 | Q1-06 | Q2-06 | Q3-06 | Q4-06 |
Ending Floating Rate Assets | $677,000 | $632,000 | $644,000 | $568,000 | $593,000 |
Prime Rate | 7.25% | 7.75% | 8.25% | 8.25% | 8.25% |
Net Interest Margin and Net Interest Income
(Dollars in thousands) | Q4-05 | Q1-06 | Q2-06 | Q3-06 | Q4-06 |
Net Interest Margin | 4.04% | 4.16% | 4.29% | 4.22% | 3.95% |
Net Interest Income | $20,062 | $20,274 | $24,030 | $23,144 | $21,846 |
Excludes Provision for Loan Losses; Calculated on a Fully Taxable Equivalent Basis using Amortized Cost
Service Area
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Seminole County
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Orange County
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Brevard County
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Indian River County
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Okeechobee County
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St. Lucie County
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Martin County
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Palm Beach County
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Hardee County
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Highlands County
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Desoto County
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Glades County
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Hendry County
