EXHIBIT 99.1
To 8-K dated October 26, 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 EARNINGS FOR THE THIRD QUARTER
STUART, FL., October 23, 2007 – Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCF), today reported net income for the third quarter of 2007 totaling $285,000 or $0.01 diluted earnings per share (DEPS), compared to $5,869,000 or $0.31 DEPS for the third quarter a year ago. For the first nine months of 2007, net income totaled $7,862,000 or $0.41 DEPS, compared to $18,169,000 or $0.98 DEPS for 2006. Earnings for the quarter were impacted by higher credit costs primarily related to residential development loans. The provision for loan losses totaled $8.4 million which reduced DEPS by $ 0.27 for the quarter.
“Sales activity for new residential real estate product continued to soften over the summer months in Florida after improving somewhat earlier in the year. We have continued to carefully and formally monitor, on a monthly basis, all credit relationships having exposure to the residential market. This quarter we classified as nonperforming several credit relationships that are either currently experiencing, or in the near term are likely to experience, cash flow difficulties. In those instances, we have performed a collateral evaluation (including the potential effects of existing sales contract cancellations) in response to recent changes in the market value for residential real estate and, as appropriate, have established valuation reserves,” said Dennis S. Hudson, III Chairman and Chief Executive Officer of Se acoast.
Operating results for the quarter, excluding the impact of the provision for loan losses, totaled approximately $5.1 million or cash earnings of approximately $0.27 per share. Noninterest expenses were impacted by the previously announced implementation of expense savings totaling approximately $1.5 million in the quarter, which were offset with higher nonrecurring expenses totaling approximately $1.0 million related to other professional fees, severance and employee recruitment costs. The expense reductions primarily relate to the elimination of executive bonus compensation for the year, lower incentive payouts for senior officers and reduced profit-sharing compensation, all as a result of lower than expected earnings performance. These savings will reduce compensation expense by approximately $500,000 in the fourth quar ter, and will remain in effect until the Company produces meaningful earnings improvements. Noninterest expenses are expected to total approximately $19 million in the fourth quarter. The Company has also identified additional savings totaling approximately $3.5 million annually that it intends to implement over the next two quarters involving the consolidation of branch offices, reductions in staff and a reduction in marketing costs and other professional fees.
Included in the results for the first nine months was the impact of the restructuring of the Company’s investment portfolio; therefore, net income, excluding securities restructuring losses, totaled $11.16 million for the nine months of 2007 or $0.58 DEPS.
Net interest income totaled $21.1 million for the quarter, a decline of $321,000 compared with the second quarter of 2007. The decline was primarily due to increased levels of nonperforming assets. The net interest margin declined by 15 basis points to 3.94 percent in the third quarter 2007 compared to the second quarter of 2007, primarily as a result of higher nonperforming assets and increased costs for interest bearing liabilities. Interest bearing deposit costs increased 10 basis points to 3.69 percent in the third quarter 2007, and total interest bearing liabilities increased from 3.79 percent for the second quarter to 3.88 percent in the third quarter. Since the Fed lowered rates 50 basis points on September 18, 2007, many of the Company’s deposit products have repriced; therefore, future cost for interes t bearing deposits should improve.
Interest bearing deposits declined $14.4 million over the past year and increased $4.4 million linked quarter for the three months ended September 30, 2007. Noninterest bearing demand deposits declined $15.9 million in the third quarter, consistent with past seasonal growth patterns experienced in many of the Company’s markets, and now comprise 18 percent of total deposits, down from 19 percent last quarter. Past growth in deposits related to seasonal improvements in the fourth and first quarters would suggest improved growth rates compared to the third quarter of 2007.
Total loans outstanding at September 30, 2007 increased 14.3 percent compared to September 30, 2006. With the addition of the new office in Broward County and increased lenders in the Orlando and Brevard County markets, the Company believes it can continue to grow its loan portfolio by approximately 10 percent over the next twelve months as a result of the improved commercial lending capacity. The Broward County market’s outstanding loans and deposits at September 30, 2007 totaled $49 million and $13 million, respectively. In addition, the commercial loan pipelines totaled $61 million for Broward and $94 million for Brevard/Orlando.
Noninterest income, excluding securities gains and losses, increased 8.0 percent when compared to the prior year’s third quarter, reflecting increased revenues primarily from service charges on deposit accounts and marine finance fees. Noninterest income declined by $705,000 or 10.4 percent when compared with the second quarter, due to reduced mortgage production and expected seasonally lower brokerage and marine fees.
Noninterest expenses totaled $19 million, up $140,000 from the prior year's third quarter. The Company previously announced that it would eliminate executive bonuses and lower incentive payouts and reduce profit-sharing as a result of lower earnings performance so far in 2007. These cost reductions totaled approximately $1.5 million for the quarter and are expected to save the Company about $500,000 in the fourth quarter.
Seacoast will host a conference call on Wednesday, October 24 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: 19349003; 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 October 24 by dialing (877) 213-9653 (domestic), using the passcode 19349003.
Seacoast Banking Corporation of Florida has approximately $2.3 billion in assets. It is one of the largest independent commercial banking organizations in Florida, 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 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 | Nine Months Ended | | | |
(Dollars in thousands, | | September 30, | | September 30, | | |
except per share data) | | 2007 | | 2006 | | | | 2007 | | 2006 | |
| | | | | | | | | | | | |
Summary of Earnings | | | | | | | | | | | |
Net income | $ | 285 | $ | 5,869 | | | $ | 7,862 | $ | 18,169 | |
Net income, excluding securities restructuring losses (5) | | 285 | | 5,869 | | | | 11,159 | | 18,169 | |
Net interest income (1) | $ | 21,147 | $ | 23,144 | | | $ | 64,047 | $ | 67,448 | |
| | | | | | | | & nbsp; | | | | |
Performance Ratios | | | | | | | | | | | |
Return on average assets-GAAP earnings (2), (3) | | 0.05 | % | 0.99 | % | | | 0.45 | % | 1.06 | % |
Return on average tangible assets (2),(3), (4),(5) | | 0.09 | | 1.05 | | | | 0.70 | | 1.11 | |
| | | | | | | | & nbsp; | | | | |
Return on average shareholders' equity–GAAP earnings (2), (3) | | 0.51 | | 11.03 | | | | 4.79 | | 12.61 | |
Return on average tangible shareholders’ equity (2),(3),(4),(5) | | 1.18 | | 15.64 | | | | 9.71 | | 17.45 | |
| | | | | | | | & nbsp; | | | | |
Net interest margin (1), (2) | | 3.94 | | 4.22 | | | | 3.99 | | 4.22 | |
| | | | | | | | & nbsp; | | | | |
Per Share Data | | | | | | | | | | | |
Net income diluted-GAAP earnings | $ | 0.01 | $ | 0.31 | | | $ | 0.41 | $ | 0.98 | |
Net income basic-GAAP earnings | | 0.02 | | 0.31 | | | | 0.41 | | 1.00 | |
| | | | | | | | & nbsp; | | | | |
Net income diluted-excluding securities restructuring losses (5) | | 0.01 | | 0.31 | | | | 0.58 | | 0.98 | |
Net income basic-excluding securities restructuring losses (5) | | 0.02 | | 0.31 | | | | 0.59 | | 1.00 | |
| | | | | | | | & nbsp; | | | | |
Cash dividends declared | | 0.16 | | 0.15 | | | | 0.48 | | 0.45 | |
(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.
(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.
FINANCIAL HIGHLIGHTS | (Unaudited) | | | | | | | |
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | | |
| | | | | | | | | |
| | | | September 30, | | Increase/ |
| | | | 2007 | | 2006 | | (Decrease) |
Credit Analysis | | | | | | | | |
Net charge-offs (recoveries) year-to-date | | $ | 1,307 | $ | (133) | | n/m | |
Net charge-offs (recoveries) to average loans | | | 0.10 | % | (0.01) | % | n/m | |
Loan loss provision year-to-date | | $ | 8,932 | $ | 1,035 | | 763.0 | % |
Allowance to loans at end of period | | 1.19 | % | 0.77 | % | 54.5 | |
Nonperforming assets | | $ | 45,894 | $ | 10,437 | | 339.7 | |
Nonperforming assets to loans and other real estate owned at end of period | | | 2.42 | % | 0.63 | % | 284.1 | |
| | | | | | | | | |
Selected Financial Data | | | | | | | | |
Total assets | | $ | 2,316,779 | $ | 2,351,297 | | (1.5 | ) |
Securities – Trading (at fair value) | | | 17,955 | | 0 | | n/m | |
Securities – Available for sale (at fair value) | | | 205,174 | | 345,971 | | (40.7 | ) |
Securities – Held for investment (at amortized cost) | | | 32,588 | | 137,197 | | (76.2 | ) |
Net loans | | | 1,870,574 | | 1,643,368 | | 13.8 | |
Deposits | | | 1,855,726 | | 1,957,893 | | (5.2 | ) |
Shareholders’ equity | | | 213,880 | | 208,560 | | 2.6 | |
Book value per share | | | 11.20 | | 10.99 | | 1.9 | |
Tangible book value per share | | | 8.22 | | 8.02 | | 2.6 | |
Average shareholders' equity to average assets | | | 9.48 | % | 8.39 | % | 13.0 | |
| | | | | | | | | |
Average Balances (Year-to-Date) | | | | | | | | |
Total assets | | $ | 2,311,782 | $ | 2,295,345 | | 0.7 | |
Less: Intangible assets | | | 57,138 | | 49,686 | | 15.0 | |
Total average tangible assets | | $ | 2,254,644 | $ | 2,245,659 | | 0.4 | |
| | | | | | | | | |
Total equity | | $ | 219,252 | $ | 192,647 | | 13.8 | |
Less: Intangible assets | | | 57,138 | | 49,686 | | 15.0 | |
Total average tangible equity | | $ | 162,114 | $ | 142,961 | | 13.4 | |
| | | | | | | | | |
| | | | | | | | | |
(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.
(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 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) | 2007 | | 2006 | | 2007 | | 2006 |
| | | | | | | | | |
Interest on securities: | | | | | | | | |
Taxable | $ | 3,069 | $ | 5,366 | $ | 11,374 | $ | 16,883 |
Nontaxable | | 88 | | 97 | | 274 | | 206 |
Interest and fees on loans | 34,316 | | 30,730 | | 99,796 | | 82,717 |
Interest on federal funds sold and other investments | 298 | | 521 | | 1,211 | | 2,874 |
Total Interest Income | 37,771 | | 36,714 | | 112,655 | | 102,680 |
| | | | | | | | |
Interest on deposits | | 6,261 | | 5,366 | | 17,760 | | 13,542 |
Interest on time certificates | 7,806 | | 5,888 | | 22,085 | | 15,186 |
Interest on borrowed money | 2,645 | | 2,412 | | 8,979 | | 6,693 |
Total Interest Expense | 16,712 | | 13,666 | | 48,824 | | 35,421 |
| | | | | | | | | |
Net Interest Income | 21,059 | | 23,048 | | 63,831 | | 67,259 |
Provision for loan losses | 8,375 | | 475 | | 8,932 | | 1,035 |
Net Interest Income After Provision for Loan Losses | 12,684 | | 22,573 | | 54,899 | | 66,224 |
| | | | | | | | | |
Noninterest income: | | | | | | | | |
Service charges on deposit accounts | 1,983 | | 1,866 | | 5,644 | | 4,909 |
Trust income | | 658 | | 691 | | 1,948 | | 2,204 |
Mortgage banking fees | 260 | | 254 | | 1,131 | | 794 |
Brokerage commissions and fees | 620 | | 586 | | 2,363 | | 2,404 |
Marine finance fees | 687 | | 478 | | 2,269 | | 2,139 |
Debit card income | 578 | | 563 | | 1,743 | | 1,584 |
Other deposit based EFT fees | 101 | | 108 | | 348 | | 307 |
Merchant income | 688 | | 623 | | 2,165 | | 1,921 |
Other | | 444 | | 402 | | 1,340 | | 1,132 |
| | | 6,019 | | 5,571 | | 18,951 | | 17,394 |
Securities restructuring losses | -- | | -- | | (5,118 | ) | -- |
Securities gains (losses), net | 22 | | 2 | | 46 | | (84) |
Total Noninterest Income | 6,041 | | 5,573 | | 13,879 | | 17,310 |
| | | | | | | | | |
Noninterest expenses: | | | | | | | | |
Salaries and wages | | 7,479 | | 7,805 | | 23,828 | | 22,667 |
Employee benefits | | 1,700 | | 2,054 | | 5,419 | | 5,623 |
Outsourced data processing costs | | 1,796 | | 1,746 | | 5,697 | | 5,675 |
Occupancy | | 1,928 | | 1,947 | | 5,721 | | 5,542 |
Furniture and equipment | 758 | | 707 | | 2,109 | | 1,834 |
Marketing | | 875 | | 952 | | 2,368 | | 2,795 |
Legal and professional fees | 1,327 | | 693 | | 3,002 | | 1,929 |
FDIC assessments | | 55 | | 66 | | 169 | | 204 |
Amortization of intangibles | | 315 | | 315 | | 944 | | 755 |
Other | | 2,794 | | 2,602 | | 8,374 | | 7,848 |
Total Noninterest Expenses | 19,027 | | 18,887 | | 57,631 | | 54,872 |
| | | | | | | | | |
Income Before Income Taxes | (302 | ) | 9,259 | | 11,147 | | 28,662 |
Provision for income taxes | (587 | ) | 3,390 | | 3,285 | | 10,493 |
| | | | | | | | | |
Net Income | $ | 285 | $ | 5,869 | $ | 7,862 | $ | 18,169 |
| | | | | | | | | |
Per share common stock: | | | | | | | | |
Net income diluted | $ | 0.01 | $ | 0.31 | $ | 0.41 | $ | 0.98 |
Net income basic | | 0.02 | | 0.31 | | 0.41 | | 1.00 |
Cash dividends declared | | 0.16 | | 0.15 | | 0.48 | | 0.45 |
| | | | | | | | | |
Average diluted shares outstanding | 19,165,880 | | 19,141,484 | | 19,180,773 | | 18,517,508 |
Average basic shares outstanding | 18,924,665 | | 18,767,257 | | 18,946,759 | | 18,142,813 |
| | | | | | | | | |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
| | | | | | | | |
| | | September 30, | | December 31, | | September 30, | |
(Dollars in thousands) | | 2007 | | 2006 | | 2006 | |
| | | | | | | | |
Assets | | | | | | | |
Cash and due from banks | $ | 44,680 | $ | 89,803 | $ | 80,249 | |
Federal funds sold and other investments | | 6,605 | | 2,412 | | 14,096 | |
Total Cash and Cash Equivalents | | 51,285 | | 92,215 | | 94,345 | |
Securities: | | | | | | | |
Trading (at fair value) | | 17,955 | | -- | | -- | |
Available for sale (at fair value) | | 205,174 | | 313,983 | | 345,971 | |
Held for investment (at amortized cost) | | 32,588 | | 129,958 | | 137,197 | |
Total Securities | | 255,717 | | 443,941 | | 483,168 | |
| | | | | | | | |
Loans available for sale | | 1,833 | | 5,888 | | 3,516 | |
| | | | | | | | |
Loans, net of unearned income | | 1,893,114 | | 1,733,111 | | 1,656,061 | |
Less: Allowance for loan losses | | (22,540 | ) | (14,915) | | (12,693 | ) |
Net Loans | | 1,870,574 | | 1,718,196 | | 1,643,368 | |
| | | | | | | | |
Bank premises and equipment, net | | 39,180 | | 37,070 | | 36,400 | |
Other real estate owned | | 240 | | -- | | -- | |
Goodwill and other intangible assets | | 56,767 | | 57,299 | | 56,394 | |
Other assets | | 41,183 | | 34,826 | | 34,106 | |
| | $ | 2,316,779 | $ | 2,389,435 | $ | 2,351,297 | |
Liabilities and Shareholders’ Equity | | | | | | | |
Liabilities | | | | | | | |
Deposits | | | | | | | |
Demand deposits (noninterest bearing) | $ | 336,816 | $ | 391,805 | $ | 424,624 | |
Savings deposits | | 886,806 | | 929,444 | | 944,190 | |
Other time deposits | | 340,440 | | 325,251 | | 334,713 | |
Time certificates of $100,000 or more | | 291,664 | | 244,518 | | 254,366 | |
Total Deposits | | 1,855,726 | | 1,891,018 | | 1,957,893 | |
| | | | | | | | |
Federal funds purchased and securities sold under agreements to repurchase, maturing within 30 days | 141,884 | | 206,476 | | 104,179 | | |
Borrowed funds | | 39,749 | | 26,522 | | 26,516 | |
Subordinated debt | | 53,610 | | 41,238 | | 41,238 | |
Other liabilities | | 11,930 | | 11,756 | | 12,911 | |
| | | 2,102,899 | | 2,177,010 | | 2,142,737 | |
| | | | | | | | |
Shareholders' Equity | | | | | | | |
Preferred stock | | -- | | -- | | -- | |
Common stock | | 1,914 | | 1,899 | | 1,899 | |
Additional paid in capital | | 90,752 | | 88,380 | | 87,311 | |
Retained earnings | | 123,538 | | 124,811 | | 122,145 | |
Treasury stock | | (1,430 | ) | (310) | | (90 | ) |
| | | 214,774 | | 214,780 | | 211,265 | |
Accumulated other comprehensive loss, net | | (894 | ) | (2,355) | | (2,705 | ) |
Total Shareholders’ Equity | $ | 213,880 | | 212,425 | | 208,560 | |
| | $ | 2,316,779 | $ | 2,389,435 | $ | 2,351,297 | |
| | | | | | | | |
Common Shares Outstanding | | 19,104,027 | | 18,974,295 | | 18,980,329 | |
| | | | | | | | |
Note: The balance sheet at December 31, 2006 has been derived from the audited financial statements at that date.
CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited) | | | | | |
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |
| | Quarters | | | |
| | 2007 | | 2006 | | | Last 12 |
(Dollars in thousands, except per share data) | Third | Second | First | | Fourth | | Months |
| | | | | | | | | | | | |
Net income | $ | 285 | $ | 4,808 | $ | 2,769 | $ | 5,685 | $ | 13,547 | |
Net income, excluding securities restructuring losses (5) | 285 | | 4,808 | | 6,066 | | 5,685 | | 16,844 | |
| | | | | | | | | | | |
Operating Ratios | | | | | | | | | | |
Return on average assets-GAAP earnings (2),(3) | 0.05 | % | 0.85 | % | 0.47 | % | 0.95 | % | 0.58 | % |
Return on average tangible assets (2), (3), (4), (5) | 0.09 | | 0.91 | | 1.09 | | 1.01 | | 0.78 | |
| | | | | | | | | | | |
Return on average shareholders' equity GAAP earnings (2),(3) | 0.51 | | 8.81 | | 5.16 | | 10.57 | | 6.22 | |
Return on average tangible shareholders’ equity (2), (3), (4), (5) | 1.18 | | 12.43 | | 15.83 | | 14.87 | | 10.98 | |
| | | | | | | | | | | |
Net interest margin (1),(2) | 3.94 | | 4.09 | | 3.92 | | 3.95 | | 3.98 | |
Average equity to average assets | 9.69 | | 9.62 | | 9.15 | | 8.99 | | 9.36 | |
| | | | | | | | | | | |
Credit Analysis | | | | | | | | | | |
Net charge-offs | $ | 1,039 | | $ | 143 | | $ | 125 | | 27 | | $ | 1,334 | |
Net charge-offs to average loans | 0.22 | % | 0.03 | % | 0.03 | % | 0.01 | % | 0.08 | % |
Loan loss provision | $ | 8,375 | $ | 1,107 | $ | (550) | $ | 2,250 | $ | 11,182 | |
Allowance to loans at end of period | 1.19 | % | 0.84 | % | 0.82 | % | 0.86 | % | | |
Nonperforming assets | $ | 45,894 | $ | 15,495 | $ | 4,088 | $ | 12,465 | | | |
Nonperforming assets to loans and other real estate owned at end of period | 2.42 | % | 0.85 | % | 0.23 | % | 0.72 | % | | |
Nonaccrual loans and accruing loans 90 days or more past due to loans outstanding at end of period | 2.44 | | 0.89 | | 0.27 | | 0.72 | | | |
| | | | | | | | | | | |
Per Share Common Stock | | | | | | | | | | |
Net income diluted-GAAP earnings | $ | 0.01 | $ | 0.25 | $ | 0.14 | $ | 0.30 | $ | 0.70 | |
Net income basic-GAAP earnings | 0.02 | | 0.25 | | 0.15 | | 0.30 | | 0.72 | |
| | | | | | | | | | | |
Net income diluted-excluding securities restructuring losses (5) | 0.01 | | 0.25 | | 0.32 | | 0.30 | | 0.88 | |
Net income basic-excluding securities restructuring losses (5) | 0.02 | | 0.25 | | 0.32 | | 0.30 | | 0.89 | |
| | | | | | | | | | | |
Cash dividends declared | 0.16 | | 0.16 | | 0.16 | | 0.16 | | 0.64 | |
Book value per share | | 11.20 | | | 11.32 | | 11.34 | | 11.20 | | | |
| | | | | | | | | | | |
Average Balances | | | | | | | | | | | |
Total assets | $ | 2,279,036 | $ | 2,277,678 | $ | 2,379,739 | $ | 2,372,784 | | | |
Less: Intangible assets | | 56,884 | | 57,322 | | 57,213 | | 56,230 | | | |
Total average tangible assets | $ | 2,222,152 | $ | 2,220,356 | $ | 2,322,526 | $ | 2,316,554 | | | |
| | | | | | | | &nbs p; | | | | |
Total Equity | $ | 220,868 | $ | 219,020 | $ | 217,834 | $ | 213,354 | | | |
Less: Intangible assets | | 56,884 | | 57,322 | | 57,213 | | 56,230 | | | |
Total average tangible equity | $ | 163,984 | $ | 161,698 | $ | 160,621 | $ | 157,124 | | | |
| | | | | | | | | | | | |
(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 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)
Excludes securities restructuring losses of $5,118 (or $3,297, net of taxes) recorded in the first quarter 2007.
CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited) (continued) |
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
(Dollars in thousands)
SECURITIES | | September 30, 2007 | December 31, 2006 | September 30, 2006 |
| | | | | | | | |
U.S. Treasury and U.S. Government Agencies | | $ | 17,995 | $ | -- | $ | -- |
Securities Trading | | | 17,955 | | -- | | -- |
| | | | | | | | |
U.S. Treasury and U.S. Government Agencies | | | 35,349 | | 94,676 | | 103,219 |
Mortgage-backed | | | 164,452 | | 214,661 | | 238,389 |
Obligations of states and political subdivisions | | | 2,117 | | 2,049 | | 2,066 |
Other securities | | | 3,256 | | 2,597 | | 2,297 |
Securities Available for Sale | | | 205,174 | | 313,983 | | 345,971 |
| | | | | | | | |
Mortgage-backed | | | 26,441 | | 123,587 | | 130,567 |
Obligations of states and political subdivisions | | | 6,147 | | 6,371 | | 6,630 |
Securities Held for Investment | | | 32,588 | | 129,958 | | 137,197 |
Total Securities | | $ | 255,717 | $ | 443,941 | $ | 483,168 |
| | | | | | | | |
| | | | | | | |
| | | | | | | | |
LOANS | | September 30, 2007 | December 31, 2006 | September 30, 2006 |
| | | | | | | | |
Construction and land development | | $ | 627,003 | $ | 571,133 | $ | 542,601 |
Real estate mortgage | | | 1,051,750 | | 949,824 | | 911,630 |
Installment loans to individuals | | | 78,641 | | 83,428 | | 83,235 |
Commercial and financial | | | 135,111 | | 128,101 | | 117,738 |
Other loans | | | 609 | | 625 | | 857 |
Total Loans | | $ | 1,893,114 | $ | 1,733,111 | $ | 1,656,061 |
| | | | | | | | |
AVERAGE BALANCES, YIELDS AND RATES (1) (Unaudited) |
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |
| | | 2007 | | 2006 |
| | | 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 | $ | 233,809 | 5.25 | % | $ | 267,308 | 5.34 | % | $ | 493,810 | 4.35 | % |
Nontaxable | | 8,216 | 6.33 | | 8,323 | 6.58 | | 8,654 | 6.61 | |
Total Securities | | 242,025 | 5.29 | | 275,631 | 5.37 | | 502,464 | 4.39 | |
| | | | | | | | | | | |
Federal funds sold and other | | | | | | | | | | |
investments | | 21,364 | 5.53 | | 48,140 | 5.52 | | 38,832 | 5.32 | |
| | | | | | | | | | | |
Loans, net | | 1,866,954 | 7.30 | | 1,783,156 | 7.41 | | 1,634,263 | 7.47 | |
| | | | | | | | | | |
Total Earning Assets | | 2,130,343 | 7.05 | | 2,106,927 | 7.10 | | 2,175,559 | 6.71 | |
| | | | | | | | | | | |
Allowance for loan losses | | (15,361) | | | (14,358) | | | (12,363) | | |
Cash and due from banks | | 47,633 | | | 70,274 | | | 74,680 | | |
Premises and equipment | | 39,190 | | | 38,445 | | | 37,162 | | |
Other assets | | 77,231 | | | 76,390 | | | 75,824 | | |
| | | | | | | | | | | |
| | $ | 2,279,036 | | $ | 2,277,678 | | $ | 2,350,862 | | |
| | | | | | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | |
NOW | $ | 53,842 | 2.78 | % | $ | 170,588 | 2.61 | % | $ | 208,948 | 1.72 | % |
Savings deposits | | 112,323 | 0.71 | | 121,159 | 0.71 | | 149,323 | 0.69 | |
Money market accounts | | 715,885 | 3.15 | | 591,403 | 3.13 | | 603,133 | 2.76 | |
Time deposits | | 629,479 | 4.92 | | 617,905 | 4.88 | | 552,589 | 4.23 | |
Federal funds purchased and other short term borrowings | | 127,163 | 4.41 | | 110,123 | 4.40 | | 107,401 | 4.42 | |
Other borrowings | | 69,860 | 7.00 | | 67,816 | 7.04 | | 67,572 | 7.14 | |
| | | | | | | | | | | |
Total Interest-Bearing Liabilities | | 1,708,552 | 3.88 | | 1,678,994 | 3.79 | | 1,688,966 | 3.21 | |
| | | | | | | | | | | |
Demand deposits (noninterest-bearing) | | 340,462 | | | 370,953 | | | 439,379 | | |
Other liabilities | | 9,154 | | | 8,711 | | | 11,493 | | |
Total Liabilities | | 2,058,168 | | | 2,058,658 | | | 2,139,838 | | |
| | | | | | | | | | | |
Shareholders' equity | | 220,868 | | | 219,020 | | | 211,024 | | |
| | | | | | | | | | | |
| | $ | 2,279,036 | | $ | 2,277,678 | | $ | 2,350,862 | | |
| | | | | | | | | | | |
Interest expense as a % of earning assets | | | 3.11 | % | | 3.02 | % | | 2.49 | % |
Net interest income as a % of earning assets | | | 3.94 | | | 4.09 | | | 4.22 | |
| | | | | | | | | | | |
(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.
