Seacoast Banking Corporation of Florida (SBCF) 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

To Form 8-K dated July 29, 2013

NEWS RELEASE

SEACOAST BANKING CORPORATION OF FLORIDA

Dennis S. Hudson, III

Chairman and Chief Executive Officer

Seacoast Banking Corporation of Florida

(772) 288-6085

William R. Hahl

Executive Vice President/

Chief Financial Officer

(772) 221-2825

SEACOAST REPORTS $2.9 MILLION IN NET INCOME FOR THE QUARTER

Revenue and growth initiatives produce results

· Noninterest income (excluding securities gains) up 21.4 percent

· Ending net loan balances up 4.1 percent compared to a year ago and were up 14.6 percent linked quarter annualized

· Noninterest income to total revenue increased to 28.2 percent compared to 24.6 percent a year ago

Expense reductions are on target

· Total expenses down $1.7 million or 8.1 percent for the quarter

· Core expenses down 3.0 percent year to date compared to year ago

· Targeting at least $7.4 million in reduced expenses for 2013

Investments in loan production personnel producing results

· Higher loan production for the quarter of $183.0 million a sequential increase of 53.3 percent

· Much stronger commercial production of $68.4 million, a $31.4 million sequential increase

· Consumer loan production increased $32.4 million sequentially and totaled $114.4 million

STUART, FL., July 29, 2013 – Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCF), today reported second quarter 2013 net income of $2,954,000 compared to a net loss of $2,335,000 for the same quarter last year. Net income available to common shareholders for the second quarter 2013 totaled $2,017,000 or $0.02 per diluted common share, compared with a net loss of $3,272,000 or $0.03 per diluted common share for 2012.

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“Revenue growth continued to pick up momentum during the quarter as loan production was much improved. Noninterest revenue continued to increase as core expense and total expenses declined when compared to the prior year,” said Dennis S. Hudson, III Chairman and CEO. 

Growth Initiatives Build Core Earnings

· Total revenues, excluding securities gains for the quarter ended June 30, 2013 were $22.4 million, compared to $21.9 million for the first quarter 2013 and up $1.2 million compared to second quarter 2012. Year to date revenues were $44.4 million compared to $42.8 million a year ago;

· Period-end noninterest bearing deposits totaled $468.5 million at June 30, 2013, up $74.8 million or 19.0 percent from the same quarter last year;

· Second quarter average loans increased $22.1 million linked quarter or 7.1 percent annualized and were up $38.6 million year over year or a growth rate of 3.1 percent; and

· Average total deposits increased $32.3 million or 1.9 percent year over year.

Over the last several years, our focused tactical initiatives have produced strong organic core customer deposit account growth and increased core customer funding. Core customer funding totaled $1.6 billion at June 30, 2013, up $147 million from last year’s second quarter and up 27.6 percent since the second quarter 2011. In addition deposit mix continued to improve with noninterest bearing deposits increasing to almost 27 percent of total deposits at quarter end 2013.

(Dollars in thousands)	Second Quarter 2013			Second Quarter 2012			Second Quarter 2011			2013 vs 2012 Change			2012 vs 2011 Change
Customer Relationship Funding
Demand deposits (noninterest bearing)	$	468,517		$	393,681		$	321,876			19.0	%		22.3	%
NOW		453,069			420,449			385,640			7.8			9.0
Money market accounts		335,947			346,191			320,510			(3.0	)		8.0
Savings deposits		184,219			156,019			125,221			18.1			24.6
Time certificates of deposit		296,857			373,244			528,214			(20.5	)		(29.3	)
Total deposits		1,738,609			1,689,584			1,681,461			2.9			0.5
Sweep repurchase agreements		160,934			139,489			102,827			15.4			35.7
Total core customer funding (1)		1,602,686			1,455,829			1,256,074			10.1			15.9
Demand deposit mix (noninterest bearing)		26.9	%		23.3	%		19.1	%

(1) Total deposits and sweep repurchase agreements, excluding certificates of deposits.

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Additional growth highlights for second quarter 2013:

· Interchange fees and service charges on deposit accounts grew by 20.3% and 10.4%, respectively, compared to last year’s second quarter;

· Fees from wealth management services totaled $1,037,000 for the second quarter, up $175,000 or 20.3 percent compared to a year ago; and

· Mortgage Banking fees increased $354,000 or 39.2 percent for the quarter compared to the second quarter a year ago.

The following details noninterest income for the second quarter ended June 30, 2013 compared to the last four quarters:

(Dollars in thousands)	Second Quarter 2013		First Quarter 2013		Fourth Quarter 2012			Third Quarter 2012		Second Quarter 2012
Noninterest Income:
Service charges on deposit accounts	$	1,641	$	1,551	$	1,677		$	1,620	$	1,487
Trust income		675		676		592			550		564
Mortgage banking fees		1,256		1,114		1,030			1,155		902
Brokerage commissions and fees		362		425		292			247		298
Marine finance fees		419		272		258			279		244
Interchange income		1,388		1,264		1,157			1,119		1,154
Other deposit based EFT fees		87		98		83			70		84
Other		507		531		520			639		486
Total		6,335		5,931		5,609			5,679		5,219
Loss on sale of commercial loan held for sale		0		0		(1,238	)		0		0
Securities gains, net		114		25		582			48		3,615
	$	6,449	$	5,956	$	4,953		$	5,727	$	8,834

Credit Quality Improves

· Net charge-offs declined to $2.0 million in the second quarter 2013 compared to $6.3 million a year ago;

· Nonperforming loans totaled 2.63 percent of loans, compared with 2.88 percent last quarter and 3.97 percent one year ago;

· Nonperforming assets to total assets of 1.98 percent is lower compared to 2.64 percent a year ago;

· Net charge-offs as a ratio of average loans for the first six months declined to 0.57 percent compared to 1.59 percent for 2012;

· Restructured loans reduced to $29.6 million down 28.1% linked quarter; and

· Net loss on other real estate owned and repossessed assets declined by $297,000 or 37.6% during the second quarter year over year.

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(Dollars in thousands )	Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
Net charge-offs	$	2,027		$	1,517		$	2,151		$	2,416		$	6,275
Net charge-offs to  average loans		0.64	%		0.49	%		0.69	%		0.79	%		2.05	%
Loan loss provision	$	565		$	953		$	1,136		$	900		$	6,455
Allowance to loans at  end of period		1.59	%		1.76	%		1.80	%		1.92	%		2.02	%
Restructured loans  (accruing)	$	29,612		$	41,170		$	41,946		$	44,179		$	54,842
Nonperforming loans	$	33,266		$	35,208		$	40,955		$	44,450		$	48,482
Other real estate owned		10,063			10,850			11,887			8,888			7,219
Nonperforming assets	$	43,329		$	46,058		$	52,842		$	53,338		$	55,701
Nonaccrual loans and accruing loans 90 days or more past due to loans outstanding at end of period		2.63	%		2.88	%		3.34	%		3.70	%		3.97	%
Nonperforming assets to  total assets		1.98			2.09			2.43			2.56			2.64

Noninterest Expenses

Previously announced plans to reduce both core operating expenses and total expenses were fully implemented at year end which meaningfully reduced our expense structure for 2013. Total noninterest expenses fell by $1.7 million or 8.1 percent for the quarter compared with the prior year. Contributing to the decline were much lower expenses related to OREO and other asset disposition costs as overall asset quality continued to improve as well as reduced core operating expenses.

Core Operating Expenses for the quarter were reduced by $220 thousand or 1.1 percent compared with the prior year and were down $1.1 million or 3.0 percent for the first six months compared to 2012. Core operating expenses for the quarter included $585 thousand in salaries and employee benefits expense associated with investments in new lending and credit personnel related to our growth initiatives.

Noninterest expenses for the second quarter 2013 are presented below compared to the prior four quarters:

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(Dollars in thousands)	Second Quarter  2013			First Quarter  2013		Fourth Quarter  2012		Third Quarter 2012			Second Quarter 2012
Noninterest Expense:
Salaries and wages	$	7,892		$	7,437	$	7,258	$	7,442		$	7,297
Employee benefits		1,823			2,223		1,860		1,924			1,916
Outsourced data processing costs		1,631			1,498		1,904		1,923			1,834
Telephone / data lines		325			285		293		299			297
Occupancy expense		1,775			1,755		1,896		1,876			1,818
Furniture and equipment expense		571			561		585		556			607
Marketing expense		685			449		707		785			677
Legal and professional fees		949			796		1,114		1,122			1,637
FDIC assessments		720			717		697		695			707
Amortization of intangibles		197			195		195		196			196
Other		2,512			2,153		2,428		2,018			2,314
Total Core Operating Expense		19,080			18,069		18,937		18,836			19,300
Severance and organizational changes		10			33		84		839			138
Branch consolidation		0			0		407		232			125
Recovery of prior legal fees		(650	)		0		0		(500	)		0
Net loss on OREO and repossessed assets		493			567		157		561			790
Asset dispositions expense		111			290		200		364			368
Total	$	19,044		$	18,959	$	19,785	$	20,332		$	20,721

Over the past year, we redeployed overhead into additional loan production personnel while simultaneously reducing overall operating expenses. We believe these investments are particularly important in the current low rate environment. Investments in additional lending and credit support personnel have been significant over the past year and are a critical component of our commercial and business banking growth plan. Annual salaries and benefits added to our lending and credit support teams during each of the past two years and year-to-date for 2013 are presented in the table below:

Annual Salaries and Benefits Added to Lending and Credit Support Teams

(Dollars in thousands)	Year to Date		Year-end
	2013		2012		2011		Total
Loan production and support personnel:
Commercial	$	400	$	2,065	$	527
Residential		41		396		248
	$	441	$	2,461	$	775	$	3,677

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As shown in the table below, total loan originations and pipeline balances have been growing over the prior four quarters and now total over $115 million for the second quarter 2013 as a result of the investments in revenue producing personnel in 2011 and 2012. Also included in the table below, are the salaries and benefits associated with new commercial loan officers and credit support personnel with tenures of six months or less for each quarter of 2013 and the last three quarters of 2012. These costs are included in core operating expenses, are significant and are considered investments that impact our efficiency in the short run.

(Dollars in thousands)	Second Quarter 2013		First Quarter 2013		Fourth Quarter 2012		Third Quarter 2012		Second Quarter 2012
Commercial pipeline	$	46,850	$	63,842	$	26,809	$	45,769	$	29,858
Commercial loans closed		68,388		36,973		49,190		24,628		21,710
Total loan originations and pipeline	$	115,238	$	100,815	$	75,999	$	70,397	$	51,568
Salaries and benefits, lenders and support personnel < six months	$	585	$	538	$	345	$	332	$	228
Total revenues, excluding securities gains and loss on sale of commercial loan	$	22,449	$	21,931	$	21,817	$	21,631	$	21,226

Our revenue growth is being positively impacted with increased loan production by our investment in new loan production personnel and core operating leverage is expected to improve in the future as productivity improves.

The Company’s tier 1 capital ratio was 17.0 percent and the total risk based capital ratio was 18.3 percent at June 30, 2013. The tangible common equity ratio was 5.31 percent at June 30, 2013. Adjusting the tangible common equity ratio for the reversal of the deferred tax valuation allowance would increase the ratio to approximately 7.25 percent. Our improved earnings and lower credit risk continue to increase the likelihood that the allowance will be recovered as early as this year.

The Company will host a conference call on Monday, July 29, 2013 at 10:00 a.m. (Eastern Time) to discuss its earnings results and business trends.  Investors may call in (toll-free) by dialing (888) 517-2458 (access code: 6117222; leader: Dennis S. Hudson).  Charts will be used during the conference call and may be accessed at Seacoast’s website atwww.seacoastbanking.net by selecting “Presentations” under the heading “Investor Services”.  A replay of the conference call will be available beginning the afternoon of July 29 by dialing (888) 843-7419 (domestic), using the passcode 6117222.

Alternatively, individuals may listen to the live webcast of the presentation by visiting the Company’s website atwww.seacoastbanking.net.  The link to the live audio webcast is located in the subsection “Presentations” under the heading “Investor Services”.  Beginning the afternoon of July 29, 2013, an archived version of the webcast can be accessed from this same subsection of the website.  This webcast will be archived and available for one year. 

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With over $2 billion in assets, 34 traditional branches and offering business banking loan and deposit products and services in 5 Accelerate offices fueled by the power of Seacoast National Bank, Seacoast is one of the largest community banks headquartered in Florida. Offices stretch from Broward County north through the Treasure Coast and into Orlando, and west to Okeechobee and surrounding counties.

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, ability to realized deferred tax assets, 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, tax and regulatory changes; changes in accounting policies, rules and practices; the risks of changes in interest rates on the level and composition of deposits, loan demand, liquidity 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.

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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, 2012 under “Special Cautionary Notice Regarding Forward-Looking Statements” and “Risk Factors”, and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, 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

(Dollars in thousands, except share data)	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2013			2013			2012			2013			2012
Summary of Earnings
Net income	$	2,954		$	2,044		$	(2,335	)	$	4,998		$	(1,397	)
Net income available to common shareholders		2,017			1,107			(3,272	)		3,124			(3,271	)
Net interest income  (1)		16,172			16,055			16,052			32,227			32,741
Net interest margin  (1), (2)		3.12			3.15			3.17			3.13			3.25
Performance Ratios
Return on average assets-GAAP basis (2), (3)		0.54	%		0.38	%		(0.44	)%		0.46	%		(0.13	)%
Return on average shareholders' equity-GAAP basis (2), (3)		7.19			5.09			(5.56	)		6.15			(1.68	)
Return on average tangible common shareholders' equity-GAAP basis (2), (3), (4)		10.37			7.37			(7.91	)		8.79			(2.39	)
Efficiency ratio (5)		81.06			81.45			91.05			81.25			89.49
Noninterest income to total revenue		28.22			27.00			24.60			27.64			23.70
Per Share Data
Net income diluted-GAAP basis	$	0.02		$	0.01		$	(0.03	)	$	0.03		$	(0.03	)
Net income basic-GAAP basis		0.02			0.01			(0.03	)		0.03			(0.03	)
Book value per share common		1.18			1.24			1.24			1.18			1.24
Tangible book value per share		1.69			1.74			1.73			1.69			1.73
Tangible common book value per share (4)		1.17			1.23			1.22			1.17			1.22
Cash dividends declared		0.00			0.00			0.00			0.00			0.00

(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 calculation of ROA and ROE do not include the mark-to-market unrealized gains (losses) becausethe unrealized gains (losses) are not included in net income (loss).

(4) The Company defines tangible common equity as total shareholders equity less preferred stock and intangible assets.

(5) Defined as (non-interest expense less foreclosed property expense and amortization of intangibles) divided by net operating revenue.

n/m = not meaningful

FINANCIAL HIGHLIGHTS

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	June 30,			March 31,			June 30,
(Dollars in thousands, except share data)	2013			2013			2012
Selected Financial Data
Total assets	$	2,183,680		$	2,202,049		$	2,106,514
Securities available for sale (at fair value)		672,809			649,196			562,691
Net loans		1,245,815			1,202,270			1,196,719
Deposits		1,738,609			1,762,164			1,689,584
Total shareholders' equity		161,248			166,705			165,453
Common shareholders' equity		111,878			117,647			117,332
Average Balances (Year-to-Date)
Total assets	$	2,173,810		$	2,169,329		$	2,129,949
Less: intangible assets		1,299			1,395			2,086
Total average tangible assets	$	2,172,511		$	2,167,934		$	2,127,863
Total equity	$	163,776		$	162,795		$	167,665
Less: intangible assets		1,299			1,395			2,086
Total average tangible equity	$	162,477		$	161,400		$	165,579
Credit Analysis
Net charge-offs year-to-date	$	3,545		$	1,517		$	9,690
Net charge-offs to average loans (annualized)		0.57	%		0.49	%		1.59	%
Loan loss provision year-to-date	$	1,518		$	953		$	8,760
Allowance to loans at end of period		1.59	%		1.76	%		2.02	%
Nonperforming loans	$	33,266		$	35,208		$	48,482
Other real estate owned		10,063			10,850			7,219
Total nonperforming assets	$	43,329		$	46,058		$	55,701
Restructured loans (accruing)	$	29,612		$	41,170		$	54,842
Nonperforming loans to loans at end of period		2.63	%		2.88	%		3.97	%
Nonperforming assets to total assets		1.98	%		2.09	%		2.64	%

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)	2013		2012			2013		2012
Interest on securities:
Taxable	$	3,008	$	3,309		$	6,077	$	7,644
Nontaxable		18		23			150		47
Interest and fees on loans		14,264		14,707			28,291		29,481
Interest on federal funds sold and other investments		225		267			452		484
Total Interest Income		17,515		18,306			34,970		37,656
Interest on deposits		191		418			399		867
Interest on time certificates		501		1,133			1,033		2,633
Interest on borrowed money		708		748			1,424		1,507
Total Interest Expense		1,400		2,299			2,856		5,007
Net Interest Income		16,115		16,007			32,114		32,649
Provision for loan losses		565		6,455			1,518		8,760
Net Interest Income After Provision for Loan Losses		15,550		9,552			30,596		23,889
Noninterest income:
Service charges on deposit accounts		1,641		1,487			3,192		2,948
Trust income		675		564			1,351		1,137
Mortgage banking fees		1,256		902			2,370		1,525
Brokerage commissions and fees		362		298			787		532
Marine finance fees		419		244			691		574
Interchange income		1,388		1,154			2,652		2,225
Other deposit based EFT fees		87		84			185		183
Other		507		486			1,038		1,032
		6,335		5,219			12,266		10,156
Securities gains, net		114		3,615			139		6,989
Total Noninterest Income		6,449		8,834			12,405		17,145
Noninterest expenses:
Salaries and wages		7,902		7,435			15,372		14,490
Employee benefits		1,823		1,916			4,046		3,926
Outsourced data processing costs		1,630		1,834			3,129		3,555
Telephone / data lines		325		297			610		586
Occupancy		1,775		1,943			3,530		3,825
Furniture and equipment		571		607			1,132		1,102
Marketing		685		677			1,134		1,603
Legal and professional fees		299		1,637			1,095		3,413
FDIC assessments		720		707			1,437		1,413
Amortization of intangibles		196		196			392		397
Asset dispositions expense		111		368			401		895
Net loss on other real estate owned and repossessed assets		493		790			1,060		2,749
Other		2,516		2,314			4,665		4,477
Total Noninterest Expenses		19,046		20,721			38,003		42,431
Income Before Income Taxes		2,954		(2,335	)		4,998		(1,397	)
Provision for income taxes		0		0			0		0
Net Income		2,954		(2,335	)		4,998		(1,397	)
Preferred stock dividends and accretion on preferred stock discount		937		937			1,874		1,874
Net Income Available to Common Shareholders	$	2,017	$	(3,272	)	$	3,124	$	(3,271	)
Per share of common stock:
Net income diluted	$	0.02	$	(0.03	)	$	0.03	$	(0.03	)
Net income basic		0.02		(0.03	)		0.03		(0.03	)
Cash dividends declared		0.00		0.00			0.00		0.00
Average diluted shares outstanding		94,682,401		94,452,317			94,654,394		94,423,611
Average basic shares outstanding		93,973,256		93,667,231			93,960,270		93,642,680

CONDENSED CONSOLIDATED BALANCE SHEETS	(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	June 30,			December 31,			June 30,
(Dollars in thousands, except share data)	2013			2012			2012
Assets
Cash and due from banks	$	33,673		$	45,620		$	29,333
Interest bearing deposits with other banks		106,446			129,367			190,302
Total Cash and Cash Equivalents		140,119			174,987			219,635
Securities:
Available for sale (at fair value)		672,809			643,050			562,691
Held for investment (at amortized cost)		0			13,818			17,122
Total Securities		672,809			656,868			579,813
Loans available for sale		26,029			36,021			11,186
Loans, net of deferred costs		1,265,893			1,226,081			1,221,354
Less: Allowance for loan losses		(20,078	)		(22,104	)		(24,635	)
Net Loans		1,245,815			1,203,977			1,196,719
Bank premises and equipment, net		35,029			34,465			35,044
Other real estate owned		10,063			11,887			7,219
Other intangible assets		1,109			1,501			1,892
Other assets		52,707			54,223			55,006
	$	2,183,680		$	2,173,929		$	2,106,514
Liabilities and Shareholders' Equity
Liabilities
Deposits
Demand deposits (noninterest bearing)	$	468,517		$	422,833		$	393,681
NOW		453,069			509,371			420,449
Savings deposits		184,219			164,956			156,019
Money market accounts		335,947			343,915			346,191
Other time certificates		168,710			182,495			207,062
Brokered time certificates		9,820			8,203			7,130
Time certificates of $100,000 or more		118,327			127,188			159,052
Total Deposits		1,738,609			1,758,961			1,689,584
Federal funds purchased and securities sold under agreements to repurchase, maturing within 30 days		160,934			136,803			139,489
Borrowed funds		50,000			50,000			50,000
Subordinated debt		53,610			53,610			53,610
Other liabilities		19,279			9,009			8,378
		2,022,432			2,008,383			1,941,061
Shareholders' Equity
Preferred stock - Series A		49,370			48,746			48,121
Common stock		9,487			9,484			9,477
Additional paid in capital		223,026			222,851			222,391
Accumulated deficit		(115,487	)		(118,611	)		(117,423	)
Treasury stock		(12	)		(62	)		(32	)
		166,384			162,408			162,534
Accumulated other comprehensive gain, net		(5,136	)		3,138			2,919
Total Shareholders' Equity		161,248			165,546			165,453
	$	2,183,680		$	2,173,929		$	2,106,514
Common Shares Outstanding		94,911,466			94,837,170			94,779,981

Note: The balance sheet at December 31, 2012 has been derived from the audited financial statements at that date.

CONSOLIDATED QUARTERLY FINANCIAL  DATA	(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	QUARTERS
	2013						2012
(Dollars in thousands, except per share data)	Second			First			Fourth			Third			Second
Net income (loss)	$	2,954		$	2,044		$	240		$	447		$	(2,335	)
Operating Ratios
Return on average assets-GAAP basis (2),(3)		0.54	%		0.38	%		0.05	%		0.08	%		(0.44	)%
Return on average tangible assets (2),(3),(4)		0.57			0.41			0.07			0.11			(0.42	)
Return on average shareholders' equity-GAAP basis (2),(3)		7.19			5.09			0.58			1.09			(5.56	)
Efficiency ratio (5)		81.06			81.45			87.97			88.64			91.05
Noninterest income to total revenue		28.22			27.00			25.71			26.25			24.60
Net interest margin (1),(2)		3.12			3.15			3.22			3.17			3.17
Average equity to average assets		7.56			7.50			7.73			7.77			7.90
Credit Analysis
Net charge-offs	$	2,028		$	1,517		$	2,151		$	2,416		$	6,275
Net charge-offs to average loans		0.64	%		0.49	%		0.69	%		0.79	%		2.05	%
Loan loss provision	$	565		$	953		$	1,136		$	900		$	6,455
Allowance to loans at end of period		1.59	%		1.76	%		1.80	%		1.92	%		2.02	%
Restructured loans (accruing)	$	29,612			41,170			41,946			44,179			54,842
Nonperforming loans	$	33,266			35,208			40,955			44,450			48,482
Other real estate owned		10,063			10,850			11,887			8,888			7,219
Nonperforming assets	$	43,329		$	46,058		$	52,842		$	53,338		$	55,701
Nonperforming loans to loans at end of period		2.63	%		2.88	%		3.34	%		3.70	%		3.97	%
Nonperforming assets to total assets		1.98			2.09			2.43			2.56			2.64
Per Share Common Stock
Net income (loss) diluted-GAAP basis	$	0.02		$	0.01		$	(0.01	)	$	(0.01	)	$	(0.03	)
Net income (loss) basic-GAAP basis		0.02			0.01			(0.01	)		(0.01	)		(0.03	)
Cash dividends declared		0.00			0.00			0.00			0.00			0.00
Book value per share common		1.18			1.24			1.23			1.25			1.24
Average Balances
Total assets	$	2,178,242		$	2,169,329		$	2,111,986		$	2,096,694		$	2,133,713
Less: Intangible assets		1,205			1,395			1,596			1,793			1,988
Total average tangible assets	$	2,177,037		$	2,167,934		$	2,110,390		$	2,094,901		$	2,131,725
Total equity	$	164,746		$	162,795		$	163,341		$	162,902		$	168,457
Less: Intangible assets		1,205			1,395			1,596			1,793			1,988
Total average tangible equity	$	163,541		$	161,400		$	161,745		$	161,109		$	166,469

(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 calculation 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 (loss).

(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) Defined as (non-interest expense less foreclosed property expense and amortization of intangibles) divided by net operating revenue(net interest income on a fully taxable equivalent basis plus non-interest income excluding securities gains)

	June 30,		December 31,		June 30,
SECURITIES	2013		2012		2012
U.S. Treasury and U.S. Government Agencies	$	101	$	1,707	$	1,714
Mortgage-backed		631,228		640,445		560,070
Collateralized loan obligations		32,527		0		0
Obligations of states and political subdivisions		7,465		898		907
Other securities		1,488		0		0
Securities Available for Sale		672,809		643,050		562,691
Mortgage-backed		0		5,965		8,962
Obligations of states and political subdivisions		0		6,353		6,660
Other securities		0		1,500		1,500
Securities Held for Investment (1)		0		13,818		17,122
Total Securities	$	672,809	$	656,868	$	579,813

(1) Securities Held for Investment were transferred to Securities Available for Sale for more options to manage interest rate risk prospectively.

	June 30,		December 31,		June 30,
LOANS	2013		2012		2012
Construction and land development	$	61,116	$	60,736	$	57,228
Real estate mortgage		1,094,976		1,056,159		1,057,551
Installment loans to individuals		44,296		46,930		50,133
Commercial and financial		65,224		61,903		56,220
Other loans		281		353		222
Total Loans	$	1,265,893	$	1,226,081	$	1,221,354

AVERAGE BALANCES	(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	QUARTER															Percent Change vs.
	2013						2012									1st Qtr				2nd Qtr
(Dollars in thousands)		Second			First			Fourth			Third			Second			2013				2012
Assets
Earning assets:
Securities:
Taxable	$	639,769		$	646,184		$	604,412		$	572,328		$	552,501			(1.0	)%			15.8	%
Nontaxable		1,647			1,666			1,670			1,972			2,055			(1.1	)			(19.8	)
Total Securities		641,416			647,850			606,082			574,300			554,556			(1.0	)			15.7
Federal funds sold and other investments		168,740			172,505			162,599			209,461			248,944			(2.2	)			(32.2	)
Loans, net		1,269,789			1,247,666			1,241,711			1,223,313			1,231,239			1.8				3.1
Total Earning Assets		2,079,945			2,068,021			2,010,392			2,007,074			2,034,739			0.6				2.2
Allowance for loan losses		(21,515	)		(22,018	)		(23,820	)		(24,807	)		(23,677	)		(2.3	)			(9.1	)
Cash and due from banks		34,279			34,706			39,321			29,227			31,795			(1.2	)			7.8
Premises and equipment		35,121			34,516			34,566			35,003			34,197			1.8		��		2.7
Other assets		50,412			54,104			51,527			50,197			56,659			(6.8	)			(11.0	)
	$	2,178,242		$	2,169,329		$	2,111,986		$	2,096,694		$	2,133,713			0.4				2.1
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
NOW	$	461,005		$	474,915		$	449,476		$	419,007		$	423,240			(2.9	)%			8.9	%
Savings deposits		180,915			170,502			161,156			157,577			152,333			6.1				18.8
Money market accounts		339,058			341,833			346,089			350,213			336,392			(0.8	)			0.8
Time deposits		302,110			311,945			330,556			358,504			406,292			(3.2	)			(25.6	)
Federal funds purchased and other short term borrowings		159,847			160,600			131,628			140,932			146,510			(0.5	)			9.1
Other borrowings		103,610			103,610			103,610			103,610			103,610			0.0				0.0
Total Interest-Bearing Liabilities		1,546,545			1,563,405			1,522,515			1,529,843			1,568,377			(1.1	)			(1.4	)
Demand deposits (noninterest-bearing)		455,525			433,757			416,482			394,467			388,060			5.0				17.4
Other liabilities		11,426			9,372			9,648			9,482			8,819			21.9				29.6
Total Liabilities		2,013,496			2,006,534			1,948,645			1,933,792			1,965,256			0.3				2.5
Shareholders' equity		164,746			162,795			163,341			162,902			168,457			1.2				(2.2	)
	$	2,178,242		$	2,169,329		$	2,111,986		$	2,096,694		$	2,133,713			0.4				2.1

AVERAGE YIELDS / RATES(1)	(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	QUARTER
	2013						2012
(Dollars in thousands)	Second			First			Fourth			Third			Second
Assets
Earning assets:
Securities:
Taxable		1.88	%		1.97	%		2.07	%		2.23	%		2.40	%
Nontaxable		6.57			6.37			4.31			6.48			6.81
Total Securities		1.89			1.98			2.08			2.24			2.41
Federal funds sold and other investments		0.53			0.54			0.55			0.46			0.43
Loans, net		4.52			4.57			4.64			4.68			4.81
Total Earning Assets		3.39			3.43			3.53			3.54			3.63
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
NOW		0.09			0.10			0.11			0.15			0.16
Savings deposits		0.05			0.06			0.09			0.11			0.10
Money market accounts		0.08			0.08			0.13			0.21			0.26
Time deposits		0.67			0.69			0.72			0.82			1.12
Federal funds purchased and other short term borrowings		0.18			0.21			0.23			0.24			0.25
Other borrowings		2.46			2.48			2.50			2.57			2.55
Total Interest-Bearing Liabilities		0.36			0.38			0.42			0.49			0.59
Interest expense as a % of earning assets		0.27			0.29			0.32			0.37			0.45
Net interest income as a % of earning assets		3.12			3.15			3.22			3.17			3.17

(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.

INTEREST INCOME / EXPENSE(1)	(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	QUARTER										Percent Change vs.
	2013				2012						1st Qtr			2nd Qtr
(Dollars in thousands)	Second		First		Fourth		Third		Second		2013			2012
Assets
Earning assets:
Securities:
Taxable	$	3,008	$	3,184	$	3,130	$	3,190	$	3,309		(5.5	)%		(9.1	)%
Nontaxable		27		27		19		32		35		0.2			(22.7	)
Total Securities		3,035		3,211		3,149		3,222		3,344		(5.5	)		(9.2	)
Federal funds sold and other investments		225		228		226		243		267		(1.2	)		(15.8	)
Loans, net		14,312		14,073		14,477		14,403		14,740		1.7			(2.9	)
Total Earning Assets		17,572		17,512		17,852		17,868		18,351		0.3			(4.2	)
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
NOW		101		112		128		156		165		(10.0	)		(38.9	)
Savings deposits		24		26		36		42		39		(6.8	)		(38.1	)
Money market accounts		67		70		111		182		214		(4.7	)		(68.8	)
Time deposits		501		532		598		738		1,133		(5.7	)		(55.7	)
Federal funds purchased and other short term borrowings		73		83		75		86		92		(12.5	)		(20.7	)
Other borrowings		634		634		650		669		656		0.0			(3.3	)
Total Interest-Bearing Liabilities		1,400		1,457		1,598		1,873		2,299		(3.9	)		(39.1	)
Net interest income		16,172		16,055		16,254		15,995		16,052		0.7			0.7

(1) On a fully taxable equivalent basis. Fees on loans have been included in interest on loans

CONSOLIDATED QUARTERLY FINANCIAL DATA	(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	2013					2012
(Dollars in thousands)	Second Quarter		First Quarter			Fourth Quarter		Third Quarter		Second Quarter
Customer Relationship Funding (Period End)
Demand deposits (noninterest bearing)
Commercial	$	260,325	$	246,849	#	$	232,413	$	220,225	$	212,179
Retail		163,551		167,515			153,429		156,329		156,362
Public funds		29,487		26,166			21,799		16,103		11,168
Other		15,154		12,613			15,193		16,488		13,972
	$	468,517	$	453,144		$	422,833	$	409,145	$	393,681
NOW accounts
Commercial		35,714		39,303			32,701		33,083		32,989
Retail		308,390		307,546			308,633		296,078		297,581
Public funds		108,965		136,065			168,037		91,316		89,877
	$	453,069	$	482,914		$	509,371	$	420,477	$	420,448
Total Transaction Accounts
Commercial		296,039		286,152			265,114		253,308		245,168
Retail		471,941		475,060			462,062		452,407		453,943
Public funds		138,452		162,231			189,836		107,419		101,045
Other		15,154		12,613			15,193		16,488		13,972
	$	921,586	$	936,057		$	932,205	$	829,622	$	814,129
Savings accounts		184,219		177,213			164,956		158,208		156,019
Money market accounts
Commercial		109,938		111,580			114,965		122,485		116,440
Retail		216,370		220,555			220,601		216,775		218,177
Public funds		9,639		9,081			8,349		9,015		11,574
	$	335,947	$	341,216		$	343,915	$	348,275	$	346,191
Time certificates of deposit		296,857		307,678			317,886		343,361		373,244
Total Deposits	$	1,738,611	$	1,762,166		$	1,758,961	$	1,679,466	$	1,689,584
Sweep repurchase agreements		160,934		161,678			136,803		122,393		139,489
Total core customer funding (1)	$	1,602,688	$	1,616,164		$	1,577,878	$	1,458,498	$	1,455,829

(1) Total deposits and sweep repurchase agreements, excluding certificates of deposits.

QUARTERLY TRENDS - LOANS AT END OF PERIOD (Dollars in Millions)	(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	2012								2013
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr
Installment loans to individuals
Automobile and trucks	$	8.2	$	8.1	$	8.0	$	7.8	$	7.8	$	7.5
Marine loans		21.1		20.8		23.0		18.4		15.4		16.7
Other		21.5		21.3		20.6		20.7		20.0		20.1
		50.8		50.2		51.6		46.9		43.2		44.3
Construction and land development to individuals
Lot loans		18.4		17.6		16.4		16.7		16.6		15.5
Construction		13.5		16.6		18.9		22.2		20.8		20.7
		31.9		34.2		35.3		38.9		37.4		36.2
Residential real estate
Adjustable		341.6		359.4		353.7		361.0		365.8		372.6
Fixed rate		96.2		95.4		99.7		99.0		98.2		97.5
Home equity mortgages		59.5		58.3		58.4		58.0		61.3		62.2
Home equity lines		53.0		50.8		50.6		51.4		49.3		49.1
		550.3		563.9		562.4		569.4		574.6		581.4
TOTAL CONSUMER		633.0		648.3		649.3		655.2		655.2		661.9
Commercial & financial		54.6		56.2		58.2		61.9		64.8		65.2
Construction and land development for commercial
Residential
Single family land and lots		6.0		5.9		5.8		5.6		4.9		5.0
Multifamily		4.9		4.7		4.6		4.3		3.9		3.9
		10.9		10.6		10.4		9.9		8.8		8.9
Commercial
Office buildings		0.3		-		-		-		1.1		1.6
Retail trade		-		-		-		-		-		1.8
Land		9.2		10.7		9.8		9.6		7.8		7.2
Healthcare		-		-		-		1.8		3.3		2.9
Churches and educational facilities		0.3		0.3		0.7		0.5		1.2		2.5
Convenience stores		1.4		1.4		-		-		-		-
		11.2		12.4		10.5		11.9		13.4		16.0
Total construction and land development		22.1		23.0		20.9		21.8		22.2		24.9
Commercial real estate
Office buildings		118.0		113.4		102.4		104.7		112.5		112.0
Retail trade		139.3		128.5		121.1		126.7		122.2		135.5
Industrial		70.0		72.0		71.3		72.6		73.4		83.3
Healthcare		40.2		42.0		35.8		40.7		39.4		42.1
Churches and educational facilities		27.0		26.7		26.2		28.6		26.9		26.4
Recreation		3.1		3.1		2.7		2.7		2.6		2.6
Multifamily		8.8		8.3		7.8		9.0		8.5		9.5
Mobile home parks		2.1		2.1		2.1		2.0		2.0		1.9
Lodging		19.4		19.3		19.1		18.7		18.0		17.5
Restaurant		4.6		4.7		4.4		3.5		3.6		3.5
Agricultural		7.6		7.4		7.3		6.1		5.9		7.1
Convenience stores		15.5		15.4		16.6		20.5		20.2		20.2
Marina		21.6		21.5		21.4		21.2		21.1		20.9
Other		29.3		29.3		35.6		29.8		25.1		31.1
		506.5		493.7		473.8		486.8		481.4		513.6
TOTAL COMMERCIAL		583.2		572.9		552.9		570.5		568.4		603.7
Other		0.2		0.2		0.3		0.4		0.2		0.3
	$	1,216.4	$	1,221.4	$	1,202.5	$	1,226.1	$	1,223.8	$	1,265.9

QUARTERLY TRENDS - INCREASE (DECREASE) IN LOANS BY QUARTER (Dollars in Millions)(Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	2012												2013
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr
Installment loans to individuals
Automobile and trucks	$	(0.5	)	$	(0.1	)	$	(0.1	)	$	(0.2	)	$	-		$	(0.3	)
Marine loans		1.2			(0.3	)		2.2			(4.6	)		(3.0	)		1.3
Other		(0.5	)		(0.2	)		(0.7	)		0.1			(0.7	)		0.1
		0.2			(0.6	)		1.4			(4.7	)		(3.7	)		1.1
Construction and land development to individuals
Lot loans		0.5			(0.8	)		(1.2	)		0.3			(0.1	)		(1.1	)
Construction		4.8			3.1			2.3			3.3			(1.4	)		(0.1	)
		5.3			2.3			1.1			3.6			(1.5	)		(1.2	)
Residential real estate
Adjustable		7.5			17.8			(5.7	)		7.3			4.8			6.8
Fixed rate		(0.8	)		(0.8	)		4.3			(0.7	)		(0.8	)		(0.7	)
Home equity mortgages		(0.7	)		(1.2	)		0.1			(0.4	)		3.3			0.9
Home equity lines		(1.9	)		(2.2	)		(0.2	)		0.8			(2.1	)		(0.2	)
		4.1			13.6			(1.5	)		7.0			5.2			6.8
TOTAL CONSUMER		9.6			15.3			1.0			5.9			0.0			6.7
Commercial & financial		1.5			1.6			2.0			3.7			2.9			0.4
Construction and land development for commercial
Residential
Single family land and lots		(0.2	)		(0.1	)		(0.1	)		(0.2	)		(0.7	)		0.1
Multifamily		(0.2	)		(0.2	)		(0.1	)		(0.3	)		(0.4	)		-
		(0.4	)		(0.3	)		(0.2	)		(0.5	)		(1.1	)		0.1
Commercial
Office buildings		0.1			(0.3	)		-			-			1.1			0.5
Retail trade		-			-			-			-			-			1.8
Land		(0.1	)		1.5			(0.9	)		(0.2	)		(1.8	)		(0.6	)
Healthcare		-			-			-			1.8			1.5			(0.4	)
Churches and educational facilities		0.2			-			0.4			(0.2	)		0.7			1.3
Convenience stores		(0.3	)		-			(1.4	)		-			-			-
		(0.1	)		1.2			(1.9	)		1.4			1.5			2.6
Total construction and land development		(0.5	)		0.9			(2.1	)		0.9			0.4			2.7
Commercial real estate
Office buildings		(1.6	)		(4.6	)		(11.0	)		2.3			7.8			(0.5	)
Retail trade		(1.3	)		(10.8	)		(7.4	)		5.6			(4.5	)		13.3
Industrial		(0.7	)		2.0			(0.7	)		1.3			0.8			9.9
Healthcare		1.4			1.8			(6.2	)		4.9			(1.3	)		2.7
Churches and educational facilities		(0.4	)		(0.3	)		(0.5	)		2.4			(1.7	)		(0.5	)
Recreation		(0.1	)		-			(0.4	)		-			(0.1	)		-
Multifamily		(0.6	)		(0.5	)		(0.5	)		1.2			(0.5	)		1.0
Mobile home parks		(0.1	)		-			-			(0.1	)		-			(0.1	)
Lodging		(0.2	)		(0.1	)		(0.2	)		(0.4	)		(0.7	)		(0.5	)
Restaurant		(0.1	)		0.1			(0.3	)		(0.9	)		0.1			(0.1	)
Agricultural		(1.2	)		(0.2	)		(0.1	)		(1.2	)		(0.2	)		1.2
Convenience stores		0.4			(0.1	)		1.2			3.9			(0.3	)		-
Marina		0.3			(0.1	)		(0.1	)		(0.2	)		(0.1	)		(0.2	)
Other		2.3			-			6.3			(5.8	)		(4.7	)		6.0
		(1.9	)		(12.8	)		(19.9	)		13.0			(5.4	)		32.2
TOTAL COMMERCIAL		(0.9	)		(10.3	)		(20.0	)		17.6			(2.1	)		35.3
Other		(0.4	)		-			0.1			0.1			(0.2	)		0.1
	$	8.3		$	5.0		$	(18.9	)	$	23.6		$	(2.3	)	$	42.1