EXHIBIT 99.1
To 8-K dated July 30, 2007
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 SECOND QUARTER RESULTS
STUART, FL., July 25, 2007 – Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCF), a bank holding company whose principal subsidiary is Seacoast National Bank, today announced 2007 second quarter net income of $4.81 million or $0.25 diluted earnings per share (“DEPS”) compared to $6.43 million or $0.34 DEPS for the second quarter of 2006.
For the first six months, net income totaled $7.58 million or $0.39 DEPS, compared to $12.30 million and $0.68 DEPS earned in 2006. Core operating earnings, excluding investment securities gains and losses, totaled $10.87 million for the first half of 2007 or $0.57 DEPS, compared to $12.30 million or $0.68 DEPS for the same period in 2006.
“The reduced core earnings growth for the second quarter is attributable to an increase in the provision for loan losses and higher overhead as a result of our investment in people and processes which will allow for continued strong loan and deposit growth. The Company has also experienced slowing revenue growth due to an unfavorable yield curve and the continued drag resulting from the unwinding of the residential real estate bubble. We believe that during this time of economic adjustment, it is best to stick with successful strategies which assure future earnings growth over many years,” said Dennis S. Hudson, III, Chairman and Chief Executive Officer.
“Our long-term perspective shows an increase in franchise value from growth in households serviced, enhancement of products and services offered, expansion in attractive markets and continued solid asset quality. As a result of our expansion activities and opportunities created by acquisition disruptions in our core markets, revenue producing personnel were added during the second quarter. While we can expect to continue to feel the effects of slowing economic conditions in South Florida over the remainder of this year, the activities we are undertaking to further develop our franchise are expected to produce meaningful improvements in earnings in 2008 and beyond.”
Other significant items during the first half of 2007 included:
•
A team of bankers in Broward County Florida was added and they have already garnered $3 million in deposits, closed $11 million in commercial lines and added $90 million to the Company’s loan pipelines;
•
Three commercial lenders joined the Treasure Coast market team. Two of the lenders were formerly with the largest community bank competitor that was recently acquired by National City. They have built their loan pipelines and should have funded loan balances in the second half of 2007;
•
Total noninterest income excluding securities transactions grew by 9.4 percent over the first six months of 2007 compared to the same period in 2006;
•
Mortgage banking revenues increased $331,000 in the first half of 2007 compared to the first six months of 2006, but with higher mortgage interest rates, production for the second half of 2007 may slow;
•
The Company engaged a nationally recognized bank consulting firm to assist the board and management with strategic planning and overhead ratio improvement through revenue generation;
•
Second quarter average interest bearing deposits increased 8.3 percent annualized; however, negative changes in mix resulted as higher cost money market and time deposits grew at a higher rate;
•
Loan growth increased during the second quarter as anticipated. Total loans at June 30, 2007 were up $80 million or 9.2 percent annualized for the first six months. Commercial loan production for the second quarter totaled $151 million, compared to $76 million in the first quarter and $106 million for the second quarter of 2006. With the added lending capabilities, management expects loan growth to be at the high end of the Company’s projected 8-10 percent range for the full twelve months; and
•
Net interest income (fully tax equivalent) totaled $21.5 million for the second quarter, up slightly from the first quarter on a $93 million smaller average earning asset base of $2.1 billion. As predicted, the net interest margin improved to 4.09 percent for the second quarter as a result of the investment portfolio restructuring announced in the first quarter 2007.
Nonperforming assets increased $14.9 million from a year ago and $3 million from year-end to $15.5 million or 0.85 percent of loans and other real estate owned outstanding at June 30, 2007. The increase this quarter consisted of several loans secured with real estate. As indicated last quarter, nonperforming loan balances will experience variability over the next few quarters. Net charge-offs remained low at $143,000 for the second quarter, compared to $125,000 for the first quarter 2007. For the first six months, annualized net charge-offs as a percent of average loans totaled 0.03 percent compared to recoveries of (0.02) percent a year earlier. The allowance for loan losses as a percentage of loans totaled 0.84 percent at June 30, 2007, compared to 0.76 percent one year earlier.
The provision for loan losses totaled $1.1 million, primarily as a result of the increased loan growth as noted above, as well as increased risk related to current market conditions.
Fully taxable net interest income for the second quarter 2007 was impacted by a smaller balance sheet as total deposit growth slowed as a result of normal seasonal trends and lower average balances for commercial customers that reduced noninterest bearing balances. In addition, the increase in nonaccrual loans reduced the yield on average loans by approximately 8 basis points, while the cost of interest bearing deposits was up 19 basis points to 3.59 percent due to growth in higher cost deposit products. As a result of the investment portfolio restructuring last quarter, the yield on average earning assets increased 18 basis points and the cost of total interest bearing liabilities increased by 5 basis points. This resulted in net interest margin increasing by 17 basis points to 4.09 percent from the first quarter 2007. & nbsp;However, with the smaller balance sheet, net interest income increased only $36,000 compared to the first quarter when average earning assets were $93 million higher. While net interest income is expected to grow during the remainder of the year due to loan growth, it is likely that the spread earned on the additional volumes will be lower than the second quarter’s net interest margin given a continued inverted yield curve.
During the second quarter, investments for the future were made by expanding into Ft. Lauderdale/Broward County, Florida, with the acquisition of a team of bankers from a successful nonpublic depository institution. This overhead added a total of approximately $260,000 in expenses in the second quarter. Other lending personnel additions increased salaries and wages by approximately $100,000 in the second quarter. The added overhead caused the Company’s overhead ratio to increase to 69.5 percent in the second quarter and is expected to remain at this level for the remainder of 2007. The added capabilities will allow us to produce more revenues and continue our growth and, if successful, will move the overhead ratio lower in 2008 as a result of greater revenue growth. A similar strategy was utilized when th e Company entered the Palm Beach County market in late 2002. The group of bankers deployed was successful in building a franchise in that market consisting of $370 million in loans at June 30, 2007 and funding totaling $92 million.
During the current quarter, fees related to marine loan production increased $130,000 or 18 percent compared to the first quarter for 2007, and added $856,000 to second quarter 2007 revenues. Brokerage commissions and fees totaled $989,000 for the second quarter, an improvement over the 2007 first quarter results of $754,000. Trust revenues increased to $663,000 for the second quarter, but were lower compared to the prior year’s results of $801,000, and stand at $1,290,000 at June 30, 2007, compared to $1,513,000 for the first six months of 2006. Trust income in 2006 included fees related to estate management services for which there were no comparable fees so far in 2007.
Seacoast will host a conference call on Thursday, 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: 18327742; leader: Dennis S. Hudson). Charts will be used during the conference call and may be accessed at Seacoast’s website atwww.seacoastbanking.net by selectingPresentationsunder the headingInvestor Services. A replay of the call will be available beginning the afternoon of July 26 by dialing (877) 213-9653 (domestic), using the passcode 18327742.
Seacoast, with approximately $2.3 billion in assets, is one of the largest independent commercial banking organizations in Florida. Seacoast has 43 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.
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Cautionary Notice Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, 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 of de posits, 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 mor e 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, 2006 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) | 2007 | 2006 | 2007 | 2006 | |||||||||
Summary of Earnings | |||||||||||||
Net income | $ 4,808 | $ | 6,434 | $ | 7,577 | $ | 12,300 | ||||||
Net income, excluding securities restructuring losses (5) | 4,808 | 6,434 | 10,874 | 12,300 | |||||||||
Net interest income (1) | 21,468 | 24,030 | 42,900 | 44,304 | |||||||||
Performance Ratios | |||||||||||||
Return on average assets-GAAP earnings (2), (3) | 0.85 | % | 1.07 | % | 0.66 | % | 1.09 | % | |||||
Return on average tangible assets (2), (3), (4), (5) | 0.91 | 1.13 | 1.00 | 1.14 | |||||||||
Return on average shareholders’ equity - | |||||||||||||
GAAP earnings (2), (3) | 8.81 | 12.43 | 7.00 | 13.53 | |||||||||
Return on average tangible shareholders’ equity (2), (3), (4), (5) | 12.43 | 17.85 | 14.12 | 18.48 | |||||||||
Net interest margin (1), (2) | 4.09 | 4.29 | 4.01 | 4.23 | |||||||||
Per Share Data | |||||||||||||
Net income diluted-GAAP earnings | $ 0.25 | $ | 0.34 | $ | 0.39 | $ | 0.68 | ||||||
Net income basic-GAAP earnings | 0.25 | 0.34 | 0.40 | 0.69 | |||||||||
Net income diluted-excluding securities restructuring losses (5) | 0.25 | 0.34 | 0.57 | 0.68 | |||||||||
Net income basic-excluding securities restructuring losses (5) | 0.25 | 0.34 | 0.57 | 0.69 | |||||||||
Cash dividends declared | 0.16 | 0.15 | 0.32 | 0.30 |
June 30, | Increase/ | |||||||||
2007 | 2006 | (Decrease) | ||||||||
Credit Analysis | ||||||||||
Net charge-offs (recoveries) year-to-date | $ | 268 | $ | (156 | ) | n/m | ||||
Net charge-offs (recoveries) to average loans | 0.03 | % | (0.02 | )% | n/m | |||||
Loan loss provision year-to-date | $ | 557 | $ | 560 | (0.5 | )% | ||||
Allowance to loans at end of period | 0.84 | % | 0.76 | % | 10.5 | |||||
Nonperforming assets | $ | 15,495 | $ | 588 | 2,535.2 | |||||
Nonperforming assets to loans and other | ||||||||||
real estate owned at end of period | 0.85 | % | 0.04 | % | 2,025.0 | |||||
Selected Financial Data | ||||||||||
Total assets | $ | 2,260,173 | $ | 2,415,242 | (6.4 | ) | ||||
Securities – Trading (at fair value) | 26,690 | 0 | n/m | |||||||
Securities – Available for sale (at fair value) | 183,132 | 367,766 | (50.2 | ) | ||||||
Securities – Held for investment (at amortized cost) | 33,863 | 141,734 | (76.1 | ) | ||||||
Net loans | 1,797,883 | 1,602,405 | 12.2 | |||||||
Deposits | 1,867,191 | 2,028,605 | (8.0 | ) | ||||||
Shareholders’ equity | 217,071 | 202,843 | 7.0 | |||||||
Book value per share | 11.32 | 10.70 | 5.8 | |||||||
Tangible book value per share | 8.35 | 7.68 | 8.6 | |||||||
Average shareholders' equity | ||||||||||
to average assets | 9.38 | % | 8.09 | % | 15.9 | |||||
Average Balances (Year-to-Date) | ||||||||||
Total assets | $ | 2,328,427 | $ | 2,267,127 | 2.7 | |||||
Less: Intangible assets | 57,268 | 45,996 | 24.5 | |||||||
Total average tangible assets | $ | 2,271,159 | $ | 2,221,131 | 2.3 | |||||
Total equity | $ | 218,430 | $ | 183,306 | 19.2 | |||||
Less: Intangible assets | 57,268 | 45,996 | 24.5 | |||||||
Total average tangible equity | $ | 161,162 | $ | 137,310 | 17.4 | |||||
(1)
Calculated on a fully taxable equivalent basis.
(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) on available for sale securities are not included in net income.
(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)
Excluding securities restructuring losses of $5,118 (or $3,297, net of taxes) recorded in the first quarter 2007.
n/m = not meaningful
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||||||
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||
June 30, | December 31, | June 30, | |||||||||
(Dollars in thousands) | 2007 | 2006 | 2006 | ||||||||
Assets | |||||||||||
Cash and due from banks | $ | 66,067 | $ | 89,803 | $ | 70,177 | |||||
Federal funds sold and other investments | 15,190 | 2,412 | 100,514 | ||||||||
Total Cash and Cash Equivalents | 81,257 | 92,215 | 170,691 | ||||||||
Securities: |
|
|
| ||||||||
Trading (at fair value) | 26,690 | 0 | 0 | ||||||||
Available for sale (at fair value) | 183,132 | 313,983 | 367,766 | ||||||||
Held for investment (at amortized cost) | 33,863 | 129,958 | 141,734 | ||||||||
Total Securities | 243,685 | 443,941 | 509,500 | ||||||||
Loans available for sale | 4,204 | 5,888 | 3,362 | ||||||||
Loans, net of unearned income | 1,813,087 | 1,733,111 | 1,614,646 | ||||||||
Less: Allowance for loan losses | (15,204) | (14,915) | (12,241) | ||||||||
Net Loans | 1,797,883 | 1,718,196 | 1,602,405 | ||||||||
Bank premises and equipment, net | 38,688 | 37,070 | 37,320 | ||||||||
Other real estate owned | 288 | 0 | 139 | ||||||||
Goodwill and other intangible assets | 57,019 | 57,299 | 57,149 | ||||||||
Other assets | 37,149 | 34,826 | 34,676 | ||||||||
$ | 2,260,173 | $ | 2,389,435 | $ | 2,415,242 | ||||||
Liabilities and Shareholders’ Equity | |||||||||||
Liabilities | |||||||||||
Deposits | |||||||||||
Demand deposits (noninterest bearing) | $ | 352,702 | $ | 391,805 | $ | 488,535 | |||||
Savings deposits | 885,851 | 929,444 | 1,000,385 | ||||||||
Other time deposits | 345,047 | 325,251 | 312,209 | ||||||||
Time certificates of $100,000 or more | 283,591 | 244,518 | 227,476 | ||||||||
Total Deposits | 1,867,191 | 1,891,018 | 2,028,605 | ||||||||
Federal funds purchased and securities sold under agreements to repurchase, maturing within 30 days | 96,927 | 206,476 | 104,941 | ||||||||
Borrowed funds | 14,521 | 26,522 | 26,218 | ||||||||
Subordinated debt | 53,610 | 41,238 | 41,238 | ||||||||
Other liabilities | 10,853 | 11,756 | 11,397 | ||||||||
2,043,102 | 2,177,010 | 2,212,399 | |||||||||
Shareholders' Equity | |||||||||||
Preferred stock | 0 | 0 | 0 | ||||||||
Common stock | 1,914 | 1,899 | 1,897 | ||||||||
Additional paid in capital | 90,748 | 88,380 | 86,997 | ||||||||
Retained earnings | 126,293 | 124,811 | 119,108 | ||||||||
Treasury stock | (34) | (310) | (121) | ||||||||
218,921 | 214,780 | 207,881 | |||||||||
Accumulated other comprehensive loss, net | (1,850) | (2,355) | (5,038) | ||||||||
Total Shareholders’ Equity | 217,071 | 212,425 | 202,843 | ||||||||
$ | 2,260,173 | $ | 2,389,435 | $ | 2,415,242 | ||||||
Common Share Outstanding | 19,172,239 | 18,974,295 | 18,958,534 | ||||||||
Note: The balance sheet at December 31, 2006 has been derived from the audited financial statements at that date.
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) | 2007 | 2006 | 2007 | 2006 | ||||||||||
Interest on securities: | ||||||||||||||
Taxable | $ | 3,566 | $ | 6,120 | $ | 8,305 | $ | 11,517 | ||||||
Nontaxable | 93 | 94 | 186 | 109 | ||||||||||
Interest and fees on loans | 32,930 | 28,976 | 65,480 | 51,987 | ||||||||||
Interest on federal funds sold and other investments | 662 | 1,018 | 913 | 2,353 | ||||||||||
Total Interest Income | 37,251 | 36,208 | 74,884 | 65,966 | ||||||||||
| ||||||||||||||
Interest on deposits | 5,937 | 4,837 | 11,499 | 8,176 | ||||||||||
Interest on time certificates | 7,511 | 5,206 | 14,279 | 9,298 | ||||||||||
Interest on borrowed money | 2,399 | 2,203 | 6,334 | 4,281 | ||||||||||
Total Interest Expense | 15,847 | 12,246 | 32,112 | 21,755 | ||||||||||
Net Interest Income | 21,404 | 23,962 | 42,772 | 44,211 | ||||||||||
Provision for loan losses | 1,107 | 280 | 557 | 560 | ||||||||||
Net Interest Income After Provision for Loan Losses | 20,297 | 23,682 | 42,215 | 43,651 | ||||||||||
Noninterest income: | ||||||||||||||
Service charges on deposit accounts | 1,928 | 1,801 | 3,661 | 3,043 | ||||||||||
Trust income | 663 | 801 | 1,290 | 1,513 | ||||||||||
Mortgage banking fees | 416 | 331 | 871 | 540 | ||||||||||
Brokerage commissions and fees | 989 | 1,042 | 1,743 | 1,818 | ||||||||||
Marine finance fees | 856 | 868 | 1,582 | 1,661 | ||||||||||
Debit card income | 597 | 558 | 1,165 | 1,021 | ||||||||||
Other deposit based EFT fees | 116 | 102 | 247 | 199 | ||||||||||
Merchant income | 721 | 619 | 1,477 | 1,298 | ||||||||||
Other income | 430 | 397 | 896 | 730 | ||||||||||
6,716 | 6,519 | 12,932 | 11,823 | |||||||||||
Securities restructuring losses | 0 | 0 | (5,118 | ) | 0 | |||||||||
Securities gains (losses), net | 26 | (97 | ) | 24 | (86) | |||||||||
Total Noninterest Income | 6,742 | 6,422 | 7,838 | 11,737 | ||||||||||
Noninterest expenses: | ||||||||||||||
Salaries and wages | 8,453 | 8,443 | 16,349 | 14,862 | ||||||||||
Employee benefits | 2,032 | 1,769 | 3,719 | 3,569 | ||||||||||
Outsourced data processing costs | 1,956 | 2,180 | 3,901 | 3,929 | ||||||||||
Occupancy | 1,919 | 2,062 | 3,793 | 3,595 | ||||||||||
Furniture and equipment | 699 | 591 | 1,351 | 1,127 | ||||||||||
Marketing | 793 | 926 | 1,493 | 1,843 | ||||||||||
Legal and professional fees | 843 | 699 | 1,675 | 1,236 | ||||||||||
FDIC assessments | 56 | 79 | 114 | 138 | ||||||||||
Amortization of intangibles | 314 | 321 | 629 | 440 | ||||||||||
Other | 2,836 | 2,806 | 5,580 | 5,246 | ||||||||||
Total Noninterest Expenses | 19,901 | 19,876 | 38,604 | 35,985 | ||||||||||
Income Before Income Taxes | 7,138 | 10,228 | 11,449 | 19,403 | ||||||||||
Provision for income taxes | 2,330 | 3,794 | 3,872 | 7,103 | ||||||||||
Net Income | $ | 4,808 | $ | 6,434 | $ | 7,577 | $ | 12,300 | ||||||
Per share common stock: | ||||||||||||||
Net income diluted | $ | 0.25 | $ | 0.34 | $ | 0.39 | $ | 0.68 | ||||||
Net income basic | 0.25 | 0.34 | 0.40 | 0.69 | ||||||||||
Cash dividends declared | 0.16 | 0.15 | 0.32 | 0.30 | ||||||||||
Average diluted shares outstanding | 19,221,438 | 19,103,077 | 19,188,343 | 18,200,400 | ||||||||||
Average basic shares outstanding | 18,955,848 | 18,727,475 | 18,957,989 | 17,825,416 | ||||||||||
CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited) | ||||||||||||||||||||||||||||
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | ||||||||||||||||||||||||||||
Quarters | ||||||||||||||||||||||||||||
2007 | 2006 | Last 12 | ||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | Second | First | Fourth | Third | Months | |||||||||||||||||||||||
Net income | $ | 4,808 | $ | 2,769 | $ | 5,685 | $ | 5,869 | $ | 19,131 | ||||||||||||||||||
Net income, excluding securities restructuring losses (5) | 4,808 | 6,066 | 5,685 | 5,869 | 22,428 | |||||||||||||||||||||||
Operating Ratios | ||||||||||||||||||||||||||||
Return on average assets-GAAP earnings (2), (3) | 0.85 | % | 0.47 | % | 0.95 | % | 0.99 | % | 0.82 | % | ||||||||||||||||||
Return on average tangible assets (2), (3), (4), (5) | 0.91 | 1.09 | 1.01 | 1.05 | 1.02 | |||||||||||||||||||||||
Return on average shareholders' equity-GAAP earnings (2), (3) | 8.81 | 5.16 | 10.57 | 11.03 | 8.89 | |||||||||||||||||||||||
Return on average tangible shareholders’ equity (2), (3), (4), (5) | 12.43 | 15.83 | 14.87 | 15.64 | 14.68 | |||||||||||||||||||||||
Net interest margin (1), (2) | 4.09 | 3.92 | 3.95 | 4.22 | 4.05 | |||||||||||||||||||||||
Average equity to average assets | 9.62 | 9.15 | 8.99 | 8.98 | 9.18 | |||||||||||||||||||||||
Credit Analysis | ||||||||||||||||||||||||||||
Net charge-offs | $ | 143 | $ | 125 | $ | 27 | $ | 23 | $ | 318 | ||||||||||||||||||
Net charge-offs to average loans | 0.03 | % | 0.03 | % | 0.01 | % | 0.01 | % | 0.02 | % | ||||||||||||||||||
Loan loss provision | $ | 1,107 | $ | (550) | $ | 2,250 | $ | 475 | $ | 3,282 | ||||||||||||||||||
Allowance to loans at end of period | 0.84 | % | 0.82 | % | 0.86 | % | 0.77 | % | ||||||||||||||||||||
Nonperforming assets | $ | 15,495 | $ | 4,088 | $ | 12,465 | $ | 10,437 | ||||||||||||||||||||
Nonperforming assets to loans and other real estate owned at end of period | 0.85 | % | 0.23 | % | 0.72 | % | 0.63 | % | ||||||||||||||||||||
Nonaccrual loans and accruing loans 90 days or more past due to loans outstanding at end of period | 0.89 | 0.27 | 0.72 | 0.71 | ||||||||||||||||||||||||
Per Share Common Stock | ||||||||||||||||||||||||||||
Net income diluted-GAAP earnings | $ | 0.25 | $ | 0.14 | $ | 0.30 | $ | 0.31 | $ | 1.00 | ||||||||||||||||||
Net income basic-GAAP earnings | 0.25 | 0.15 | 0.30 | 0.31 | 1.01 | |||||||||||||||||||||||
Net income diluted-excluding securities restructuring losses (5) | 0.25 | 0.32 | 0.30 | 0.31 | 1.18 | |||||||||||||||||||||||
Net income basic-excluding securities restructuring losses (5) | 0.25 | 0.32 | 0.30 | 0.31 | 1.18 | |||||||||||||||||||||||
Cash dividends declared | 0.16 | 0.16 | 0.16 | 0.15 | 0.63 | |||||||||||||||||||||||
Book value per share | 11.32 | 11.34 | 11.20 |
| 10.99 | |||||||||||||||||||||||
Average Balances | ||||||||||||||||||||||||||||
Total assets | $ | 2,277,678 | $ | 2,379,739 | $ | 2,372,784 | $ | 2,350,862 | ||||||||||||||||||||
Less: Intangible assets | 57,322 | 57,213 | 56,230 | 56,945 | ||||||||||||||||||||||||
Total average tangible assets | $ | 2,220,356 | $ | 2,322,526 | $ | 2,316,554 | $ | 2,293,917 | ||||||||||||||||||||
Total equity | $ | 219,020 | $ | 217,834 | $ | 213,354 | $ | 211,024 | ||||||||||||||||||||
Less: Intangible assets | 57,322 | 57,213 | 56,230 | 56,945 | ||||||||||||||||||||||||
Total average tangible equity | $ | 161,698 | $ | 160,621 | $ | 157,124 | $ | 154,079 | ||||||||||||||||||||
(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) on available for sale securities are not included in net income.
(4)
The Company believes that cash operating earnings excluding the impacts of noncash amortization expense on intangible assets is a better measurement of the Company’s trend in earnings growth.
(5)
Excludes securities restructuring losses of $5,118 (or $3,297, net of taxes) recorded in first quarter 2007.
CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited) (continued) |
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
(Dollars in thousands)
SECURITIES | June 30, 2007 | December 31, 2006 | June 30, 2006 | |||||||||||||
U.S. Treasury and U. S. Government Agencies | $ | 26,690 | $ | 0 | $ | 0 | ||||||||||
Securities – Trading | 26,690 | 0 | 0 | |||||||||||||
U.S. Treasury and U. S. Government Agencies | 35,044 | 94,676 | 106,266 | |||||||||||||
Mortgage-backed | 143,325 | 214,661 | 257,639 | |||||||||||||
Obligations of states and political subdivisions | 2,071 | 2,049 | 2,020 | |||||||||||||
Other securities | 2,692 | 2,597 | 1,841 | |||||||||||||
Securities – Available for Sale | 183,132 | 313,983 | 367,766 | |||||||||||||
Mortgage-backed | 27,693 | 123,587 | 135,101 | |||||||||||||
Obligations of states and political subdivisions | 6,170 | 6,371 | 6,633 | |||||||||||||
Securities – Held for Investment | 33,863 | 129,958 | 141,734 | |||||||||||||
Total Securities | $ | 243,685 | $ | 443,941 | $ | 509,500 | ||||||||||
LOANS | June 30, 2007 | December 31, 2006 |
| June 30, 2006 | ||||||||||||
Construction and land development | $ | 601,552 | $ | 571,133 | $ | 511,480 | ||||||||||
Real estate mortgage | 991,320 | 949,824 | 893,950 | |||||||||||||
Installment loans to individuals | 79,616 | 83,428 | 87,408 | |||||||||||||
Commercial and financial | 139,014 | 128,101 | 121,330 | |||||||||||||
Other loans | 1,585 | 625 | 478 | |||||||||||||
Total Loans | $ | 1,813,087 | $ | 1,733,111 | $ | 1,614,646 | ||||||||||
AVERAGE BALANCES, YIELDS AND RATES (Unaudited) | |
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
2007 | 2006 | ||||||||||||||||
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 | $ | 267,308 | 5.34 | % | $ | 427, 743 | 4.43 | % | $ | 567,572 | 4.31 | % | |||||
Nontaxable | 8,323 | 6.58 | 8,390 | 6.53 | 8,666 | 6.42 | |||||||||||
Total Securities | 275,631 | 5.37 | 436,133 | 4.47 | 576,238 | 4.34 | |||||||||||
Federal funds sold and other investments | 48,140 | 5.52 | 16,284 | 6.25 | 86,260 | 4.73 | |||||||||||
Loans, net | 1,783,156 | 7.41 | 1,747,797 | 7.52 | 1,586,597 | 7.33 | |||||||||||
| |||||||||||||||||
Total Earning Assets | 2,106,927 | 7.10 | 2,200,214 | 6.92 | 2,249,095 | 6.47 | |||||||||||
Allowance for loan losses | (14,358) | (14,973) | (12,059 | ) | |||||||||||||
Cash and due from banks | 70,274 | 77,101 | 74,788 | ||||||||||||||
Premises and equipment | 38,445 | 37,646 | 32,771 | ||||||||||||||
Other assets | 76,390 | 79,751 | 75,088 | ||||||||||||||
$ | 2,277,678 | $ | 2,379,739 | $ | 2,419,683 | ||||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||
NOW | $ | 170,588 | 2.61 | % | $ | 195,025 | 2.38 | % | $ | 219,871 | 1.54 | % | |||||
Savings deposits | 121,159 | 0.71 | 130,985 | 0.71 | 166,563 | 0.74 | |||||||||||
Money market accounts | 591,403 | 3.13 | 567,647 | 2.99 | 608,601 | 2.43 | |||||||||||
Time deposits | 617,905 | 4.88 | 576,972 | 4.76 | 533,577 | 3.91 | |||||||||||
Federal funds purchased and other short-term borrowings | 110,123 | 4.40 | 225,805 | 4.95 | 105,140 | 4.12 | |||||||||||
Other borrowings | 67,816 | 7.04 | 67,772 | 7.05 | 67,533 | 6.68 | |||||||||||
Total Interest-Bearing Liabilities | 1,678,994 | 3.79 | 1,764,206 | 3.74 | 1,701,285 | 2.89 | |||||||||||
Demand deposits (noninterest-bearing) | 370,953 | 387,299 | 496,308 | ||||||||||||||
Other liabilities | 8,711 | 10,400 | 14,535 | ||||||||||||||
Total Liabilities | 2,058,658 | 2,161,905 | 2,212,128 | ||||||||||||||
Shareholders' equity | 219,020 | 217,834 | 207,555 | ||||||||||||||
$ | 2,277,678 | $ | 2,379,739 | $ | 2,419,683 | ||||||||||||
Interest expense as a % of earning assets | 3.02 | % | 3.00 | % | 2.18 | % | |||||||||||
Net interest income as a % of earning assets | 4.09 | 3.92 | 4.29 | ||||||||||||||
(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.