Seacoast Banking Corporation of Florida 8K Seacoast Reports Results for First Quarter 2011 | SBCF 28 Apr 11

EXHIBIT 99.1
To Form 8-K dated April 25, 2011

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 RESULTS FOR
FIRST QUARTER 2011

–First operating profit since first quarter 2008 and sixth consecutive quarter of improved credit quality

–Nonperforming assets decline by 21.7 percent over prior year

–Household growth and seasonal improvements drive deposit growth to 12.1% annualized during the quarter

–Total risk-based capital ratio improves to record 18.2 percent

STUART, FL., April 25, 2011 – Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCF), a bank holding company whose principal subsidiary is Seacoast National Bank, today reported first quarter 2011 net income of $358,000, compared with a net loss of $10.2 million in the fourth quarter of 2010 and a net loss of $1.6 million a year earlier. Including preferred stock dividends and accretion of preferred stock discount of $937,000, the net loss applicable to common shareholders was $579,000 or $0.01 per average common diluted share for the first quarter, compared to a net loss of $11.1 million or $0.12 per average common diluted share in the fourth quarter and a net loss of $2.5 million or $0.04 per average common diluted share for the first quarter of 2010.

“The strategic framework we put in place over two years ago has enabled us to manage the effects of the real estate crisis effectively and on schedule,” said Dennis S. Hudson, III, Chairman and Chief Executive Officer. “We are now poised to accelerate our business plan to increase profitability and ultimately position Seacoast as a top-tier community bank, measured by low risk, strong organic growth and increased shareholder value.”

Revenue generation improvements accelerated during the quarter as a result of growth in core business and a stronger balance sheet as favorable new customer trends continued to bring increased deposit balances, lower deposit costs, improved margins and increased fees. A total of 2,146 new core households were added in the first quarter of 2011, up 28.0 percent over the prior year. Average noninterest bearing demand deposit balances for the first quarter increased 14.8 percent compared to the prior year. Noninterest bearing demand deposits now total 19.3 percent of total deposits compared to 15.8 percent one year earlier.

“Our performance improved significantly in the first quarter of 2011 due to the completion last year of our focused strategy to eliminate exposure to residential and commercial construction and land development loans,” said Hudson. These loans included our largest and most troubled borrowers and represented our highest loss content following the unprecedented real estate valuation declines in Florida. True to our prediction that nonaccrual loans had peaked in September 2009, we have seen six consecutive quarters of improvement since then. We now expect more rapid improvement in the next two quarters as several larger problem loan relationships, which together comprise approximately 50 percent of nonaccrual loans outstanding at March 31, 2011, are expected to be liquidated as a result of contracts executed late in the first quarter.”

Highlights for the first quarter 2011 include:

•

Core deposits (excluding certificates of deposits > $100,000 and brokered time certificates) increased 13.9 percent annualized, and noninterest bearing demand deposits increased 49.4 percent annualized compared to the fourth quarter 2010;

•

Average business and personal noninterest bearing checking deposit balances increased $7.8 million or 20.5 percent and $11.8 million or 43.1 percent annualized, respectively, compared to the fourth quarter 2010;

•

Debit card income for the quarter totaled $891,000, up $77,000 or 9.5 percent linked quarter, and up $174,000 or 24.3 percent compared to first quarter 2010 as a result of the increased households added over the last twelve months, as well as, seasonal impacts;

•

A reduced provision for loan losses was required in the first quarter of $640,000, a decline of $1.4 million from a year ago and $3.3 million lower than the fourth quarter 2010;

•

Nonperforming assets (NPAs), compared to the fourth quarter 2010, declined by approximately $3.6 million to 4.34 percent of total assets, and declined $25.1 million or 21.7 percent over the last twelve months;

•

Net interest margin increased to 3.48 percent, 6 basis points higher than last quarter and unchanged from the first quarter 2010;

•

Net interest income (taxable equivalent) totaled $16.5 million, compared to $16.4 million the prior quarter; the lower deposit costs, a slightly larger investment portfolio and a slower loan runoff were the primary reasons for net interest income stabilization;

•

The cost of interest bearing liabilities totaled 0.98 percent, 3 basis points lower than the fourth quarter 2010 and 27 basis points lower than first quarter 2010;

•

Tangible common equity ratio increased to 5.6 percent from 4.8 percent as of March 31, 2010; and

•

Total risk based capital increased to 18.2 percent, up from 15.3 percent as of March 31, 2010.

During the last twelve months, overall asset quality improved notably. Early stage delinquencies, nonperforming loans, and net charge-offs improved, and in some cases, significantly. In addition, the aforementioned reduction in nonaccrual loans expected in the second and third quarter is not expected to result in further charge-offs. Nonetheless, the economic outlook while improved remains uncertain, resulting in an elevated and stable allowance for credit losses. As of March 31, 2011, the allowance for loan losses was $34 million, a decline of $4 million from year-end, and it represented 2.80% of total loans compared to 3.04% and 3.18% of total loans as December 31, 2010 and March 31, 2010, respectively.

The tax benefit for the net operating loss carry forward for the first quarter totaled $172,000. The deferred tax valuation allowance was lowered by a like amount, and therefore there was no change in the carrying value of deferred tax assets which are supported by tax planning strategies. Due to limitations on the inclusion of deferred tax assets, regulatory capital ratios are unaffected. As our earnings continue to improve and credit losses moderate, we believe we can place increased reliance on our forecast of future taxable earnings, which would support realization of the deferred tax assets and increase the Company’s common shareholders’ equity by up to $48 million.

Solid growth in new households have increased noninterest income over the past year with service charges on deposit accounts up 5.1 percent and debit card income up 24.3 percent. Trust and brokerage commissions and fees also increased 9.9 percent and 11.9 percent, respectively, over the past year as financial markets have improved and our sales activities have improved. Service charges on deposit accounts fell slightly in the first quarter on a linked quarter basis primarily due to fewer days in the first quarter compared to the fourth quarter and increased average deposit balances. Revenue increased for debit card and other EFT transactions, attributable to increases in the number of customers served and a seasonal increase in transactions.


(dollars in thousands)		Q-1 2011		Q-4 2010		Q-3 2010		Q-2 2010		Q-1 2010

Noninterest Income:
Service charges on deposit accounts	$	1,442	$	1,590	$	1,511	$	1,452	$	1,372
Trust income		523		510		500		491		476
Mortgage banking fees		395		580		654		464		421
Brokerage commissions and fees		320		325		306		257		286
Marine finance fees		298		355		330		310		339
Debit card income		891		814		810		822		717
Other deposit based EFT fees		90		75		71		82		93
Other		250		338		350		374		459

Total		4,209		4,587		4,532		4,252		4,163
Gain on sale of merchant business		0		600		0		0		0

Total	$	4,209	$	5,187	$	4,532	$	4,252	$	4,163

Wealth management fees were up $8,000 linked quarter or 3.9 percent annualized and were up $81,000 or 10.6 percent compared to first quarter a year ago. Marine finance fees were lower by $57,000 compared to the fourth quarter and lower by $41,000 compared to a year ago, as $5 million of production was retained in the loan portfolio. Mortgage banking revenues declined by $185,000 this quarter compared to the fourth quarter 2010 as a result of a surge in home purchase closings before year-end and a seasonal slowing of home purchase transactions in early 2011.

Core operating expenses remained stable for the quarter and were improved over the prior year. Expenses associated with other real estate owned and asset dispositions were substantially reduced for the quarter compared with both the prior and year earlier period.


(dollars in thousands)		Q-1 2011		Q-4 2010		Q-3 2010		Q-2 2010		Q-1 2010

Noninterest Expense:
Salaries and wages	$	6,551	$	6,539	$	6,631	$	6,776	$	6,462
Employee benefits		1,600		1,153		1,367		1,419		1,778
Outsourced data processing costs		1,522		1,496		1,503		1,503		1,479
Telephone / data lines		289		321		383		402		399
Occupancy expense		1,946		1,699		1,928		1,911		1,942
Furniture and equipment expense		593		609		595		585		609
Marketing expense		752		764		577		913		656
Legal and professional fees		1,757		1,783		2,491		1,602		2,101
FDIC assessments		959		947		966		1,039		1,006
Amortization of intangibles		212		212		212		246		315
Other		1,951		2,330		1,886		2,060		2,152

Total Core Operating Expense		18,132		17,853		18,539		18,456		18,899
Net loss on OREO and repossessed assets		449		8,763		849		105		3,824
Asset dispositions expense		1,086		1,122		587		310		249

Total	$	19,667	$	27,738	$	19,975	$	18,871	$	22,972

Salaries, wages and benefits for the first quarter 2011 were nearly unchanged at $6.5 million from a year ago and when compared to the fourth quarter 2010. Employee benefit costs, which typically are higher in the first and second quarters each year as a result of higher payroll taxes and unemployment insurance costs, increased when compared to the fourth quarter, but were down year over year by $178,000 or 10.0 percent. Costs associated with foreclosed and repossessed asset disposition and management activities declined by $8.4 million compared to the fourth quarter 2010 and $2.5 million compared to a year earlier. Also decreasing this quarter compared to a year earlier were legal and professional fees, down $344,000 related to reduced risk management and strategic planning consulting assistance.

The Company’s retail core deposit focus has produced strong growth in core deposit customer relationships and has resulted in increased balances, which allowed for run-off in brokered and single service certificates of deposit. The improved deposit mix and lower rates paid on deposits during the first quarter reduced the overall cost of total deposits to 0.72 percent, 4 basis points lower than in the fourth quarter 2010 and 31 basis points below last year’s first quarter.

Total deposits, excluding brokered certificates of deposits totaled $1.7 billion at March 31, 2011, up $49 million or 12.1 percent annualized compared to year-end 2010 total deposits. The average cost of interest bearing deposits, excluding certificates of deposits, during the first quarter was 0.30 percent, unchanged from the fourth quarter and 29 basis points lower from first quarter 2010. Certificate of deposit rates paid were lower compared to the fourth quarter and totaled 1.78 percent during the first quarter of 2011, a decline of 10 basis points compared to the fourth quarter and 28 basis points lower compared to first quarter 2010.

The mix in deposits has improved with time certificates declining to 32 percent of total deposits, compared to 35 percent a year ago. The decline in deposits resulted from management’s decision not to retain higher rate single-service certificates of deposit clients. These balances declined by $82 million, year over year, and were replaced with lower cost new core deposit accounts. As previously reported, the Company has experienced strong growth in core deposit customer relationships since implementing its new deposit growth strategy. Net core household growth increased by 3.3 percent over the last twelve months with new personal checking relationships up 37.3 percent and new commercial business checking relationships increasing 61.6 percent during the first quarter 2011 compared to the same quarter a year earlier. These new relationships have improved market share and increased average services per household.

Seacoast will host a conference call on Monday, April 25, 2011 at 10:00 a.m. (Eastern Time) to discuss the earnings results and business trends. Investors may call in (toll-free) by dialing (888) 517-2464 (access code: 5785075; leader: Dennis S. Hudson). Charts will be used during the conference call and may be accessed at Seacoast’s website at by selecting “Presentations” under the heading “Investor Services”. A replay of the call will be available for one month, beginning the afternoon of April 25, 2011, by dialing (888) 843-7419 (domestic), using the passcode 5785075.

Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast’s website atwww.seacoastbanking.net. The link is located in the subsection “Presentations” under the heading “Investor Services”. Beginning the afternoon of April 25, 2011, an archived version of the webcast can be accessed from this same subsection of the website, and will be available for one year.

Seacoast Banking Corporation of Florida has approximately $2.1 billion in assets. It is one of the largest independent commercial banking organizations in Florida, and is headquartered on Florida’s Treasure Coast, one of the wealthiest and fastest growing areas in the nation.

Cautionary Notice Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, 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.

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, 2010 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.

FINANCIAL HIGHLIGHTS (Unaudited)

SEACOAST

BANKING

CORPORATION

FLORIDA

AND

SUBSIDIARIES


	Three Months Ended
(Dollars in thousands,	March 31,
except share data)	2011					2010
Summary of Earnings
Net income (loss)	$	358		$			(1,564	)
Net loss available to common shareholders		(579	)				(2,501	)
Net interest income (1)		16,518					17,288
Performance Ratios
Return on average assets-GAAP basis (2),(3)		0.07			%		(0.30	)%
Return on average tangible assets (2),(3),(4)		0.10					(0.26	)
Return on average shareholders’ equity–GAAP basis (2), (3)		0.88					(4.18	)
Net interest margin (1),(2)		3.48					3.48
Per Share Data
Net loss diluted-GAAP basis	$	(0.01	)	$			(0.04	)
Net loss basic-GAAP basis		(0.01	)				(0.04	)
Cash dividends declared		0.00					0.00


	March 31,						Increase/
(Dollars in thousands, except per share data)	2011			2010			(Decrease)
Credit Analysis
Net charge-offs year-to-date	$	4,031		$	3,541			13.8		%
Net charge-offs to average loans		1.32	%		1.03	%		28.2
Loan loss provision year-to-date	$	640		$	2,068			(69.1	)
Allowance to loans at end of period		2.80	%		3.18			(11.9	)
Nonperforming loans	$	66,233		$	96,321			(31.2	)
Other real estate owned		24,111			19,076			26.4

Total nonperforming assets	$	90,344		$	115,397			(21.7	)

Restructured loans (accruing)	$	76,935		$	60,032			28.2
Nonperforming assets to loans and other real estate owned at end of period		7.23	%		8.29	%		(12.8	)
Nonperforming assets to total assets		4.34	%		5.44	%		(20.2	)
Selected Financial Data
Total assets	$	2,081,319		$	2,119,966			(1.8	)
Securities – available for sale (at fair value)		514,150			365,986			40.5
Securities – held for investment (at amortized cost)		25,835			10,228			152.6
Net loans		1,191,030			1,329,559			(10.4	)
Deposits		1,686,210			1,759,433			(4.2	)
Total shareholders’ equity		165,798			151,183			9.7
Common shareholders’ equity		119,238			105,872			12.6
Book value per share common		1.28			1.80			(28.9	)
Tangible book value per share		1.74			2.50			(30.4	)
Tangible common book value per share (5)		1.24			1.73			(28.3	)
Average shareholders’ equity to average assets		8.14	%		7.13	%		14.2
Tangible common equity to tangible assets (5), (6)		5.60			4.82			16.2
Average Balances (Year-to-Date)
Total assets	$	2,030,045		$	2,127,074			(4.6	)
Less: intangible assets		3,027			3,969			(23.7	)

Total average tangible assets	$	2,027,018		$	2,123,105			(4.5	)

Total equity	$	165,148		$	151,731			8.8
Less: intangible assets		3,027			3,969			(23.7	)

Total average tangible equity	$	162,121		$	147,762			9.7

(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 (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)

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

(6)

The ratio of tangible common equity to tangible assets is a non-GAAP ratio used by the investment community to measure capital adequacy.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


	Three Months Ended
	March 31,
(Dollars in thousands, except per share data)	2011			2010
Interest on securities:
Taxable	$	3,676		$	3,727
Nontaxable		47			69
Interest and fees on loans		16,213			18,377
Interest on federal funds sold and other investments		233			239

Total Interest Income		20,169			22,412
Interest on deposits		592			1,241
Interest on time certificates		2,348			3,226
Interest on borrowed money		773			732

Total Interest Expense		3,713			5,199

Net Interest Income		16,456			17,213
Provision for loan losses		640			2,068

Net Interest Income After Provision for Loan Losses		15,816			15,145
Noninterest income:
Service charges on deposit accounts		1,442			1,372
Trust income		523			476
Mortgage banking fees		395			421
Brokerage commissions and fees		320			286
Marine finance fees		298			339
Debit card income		891			717
Other deposit based EFT fees		90			93
Other		250			459

		4,209			4,163
Securities gains, net		0			2,100

Total Noninterest Income		4,209			6,263
Noninterest expenses:
Salaries and wages		6,551			6,462
Employee benefits		1,600			1,778
Outsourced data processing costs		1,522			1,479
Telephone / data lines		289			399
Occupancy		1,946			1,942
Furniture and equipment		593			609
Marketing		752			656
Legal and professional fees		1,757			2,101
FDIC assessments		959			1,006
Amortization of intangibles		212			315
Asset dispositions expense		1,086			249
Net loss on other real estate owned and
repossessed assets		449			3,824
Other		1,951			2,152

Total Noninterest Expenses		19,667			22,972
Income (Loss) Before Income Taxes		358			(1,564	)
Provision for income taxes		0			0

Net Income (Loss)		358			(1,564	)
Preferred stock dividends and accretion on preferred stock discount		937			937

Net Loss Available to Common
Shareholders	$	(579	)	$	(2,501	)
Per share of common stock:
Net loss diluted	$	(0.01	)	$	(0.04	)
Net loss basic		(0.01	)		(0.04	)
Cash dividends declared		0.00			0.00
Average diluted shares outstanding		93,458,692			58,845,822
Average basic shares outstanding		93,458,692			58,845,822

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


	March 31,			December 31,			March 31,
(Dollars in thousands, except share data)	2011			2010			2010
Assets
Cash and due from banks	$	29,578		$	35,358		$	58,153
Interest bearing deposits with other banks		197,960			176,047			216,550

Total Cash and Cash Equivalents		227,538			211,405			274,703
Securities:
Available for sale (at fair value)		514,150			435,140			365,986
Held for investment (at amortized cost)		25,835			26,861			10,228

Total Securities		539,985			462,001			376,214
Loans available for sale		3,095			12,519			3,609
Loans, net of deferred costs		1,225,383			1,240,608			1,373,278
Less: Allowance for loan losses		(34,353	)		(37,744	)		(43,719	)

Net Loans		1,191,030			1,202,864			1,329,559
Bank premises and equipment, net		35,568			36,045			38,409
Other real estate owned		24,111			25,697			19,076
Other intangible assets		2,925			3,137			3,806
Other assets		57,067			62,713			74,590

	$	2,081,319		$	2,016,381		$	2,119,966

Liabilities and Shareholders’ Equity
Liabilities
Deposits
Demand deposits (noninterest bearing)	$	324,879		$	289,621		$	278,205
Savings deposits		828,130			812,625			865,909
Other time deposits		278,437			281,681			304,807
Brokered time deposits		7,371			7,093			24,640
Time certificates of $100,000 or more		247,393			246,208			285,872

Total Deposits		1,686,210			1,637,228			1,759,433
Federal funds purchased and securities sold under agreements to repurchase, maturing within 30 days		115,185			98,213			95,708
Borrowed funds		50,000			50,000			50,000
Subordinated debt		53,610			53,610			53,610
Other liabilities		10,516			11,031			10,032

		1,915,521			1,850,082			1,968,783
Shareholders’ Equity
Preferred stock – Series A		46,560			46,248			45,311
Common stock		9,351			9,349			5,891
Additional paid in capital		221,688			221,522			177,842
Accumulated deficit		(112,650	)		(112,652	)		(80,076	)
Treasury stock		(1	)		(1	)		(437	)

		164,948			164,466			148,531
Accumulated other comprehensive gain, net		850			1,833			2,652

Total Shareholders’ Equity		165,798			166,299			151,183

	$	2,081,319		$	2,016,381		$	2,119,966

Common Shares Outstanding		93,514,212			93,487,581			58,913,722

Note: The balance sheet at December 31, 2010 has been derived from the audited financial statements at that date.


CONSOLIDATED QUARTERLY FINANCIAL DATA(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	QUARTERS
	2011				2010														Last 12
(Dollars in thousands, except per share data)	First					Fourth				Third				Second					Months

Net loss	$	358				$	(10,205	)		$	(7,638	)			$	(13,796	)		$	(31,281	)
Operating Ratios
Return on average assets-GAAP basis (2),(3)		0.07		%			(2.01	)	%		(1.47	)	%			(2.61	)	%		(1.52	)	%
Return on average tangible assets (2),(3),(4)		0.10					(1.99	)			(1.44	)				(2.58	)			(1.50	)
Return on average shareholders’ equity -GAAP basis (2),(3)		0.88					(23.31	)			(16.63	)				(30.73	)			(17.84	)
Net interest margin (1),(2)		3.48					3.42				3.35					3.27				3.37
Average equity to average assets		8.14					8.63				8.83					8.49				8.53
Credit Analysis
Net charge-offs	$	4,031				$	4,678			$	10,700				$	20,209			$	39,618
Net charge-offs to average loans		1.32		%			1.47		%		3.29		%			5.95		%		3.08		%
Loan loss provision	$	640				$	3,975			$	8,866				$	16,771			$	30,252
Allowance to loans at end of period		2.80		%			3.04		%		3.04		%			3.10		%
Restructured loans (accruing)	$	76,935				$	66,350			$	64,403				$	64,876
Nonperforming loans	$	66,233				$	68,284			$	69,519				$	90,885
Other real estate owned		24,111					25,697				32,406					19,018

Nonperforming assets	$	90,344				$	93,981			$	101,925				$	109,903

Nonperforming assets to loans and other real estate owned at end of period		7.23		%			7.42		%		7.87		%			8.33		%
Nonperforming assets to total assets		4.34					4.66				5.06					5.25
Nonaccrual loans and accruing loans 90 days or more past due to loans outstanding at end of period		5.41					5.50				5.50					6.99
Per Share Common Stock
Net loss diluted-GAAP basis	$	(0.01	)			$	(0.12	)		$	(0.09	)			$	(0.25	)		$	(0.41	)
Net loss basic-GAAP basis		(0.01	)				(0.12	)			(0.09	)				(0.25	)			(0.41	)
Cash dividends declared		0.00					0.00				0.00					0.00				0.00
Book value per share common		1.28					1.28				1.43					1.51
Average Balances
Total assets	$	2,030,045				$	2,013,405			$	2,062,857				$	2,120,388
Less: Intangible assets		3,027					3,239				3,452					3,669

Total average tangible assets	$	2,027,018				$	2,010,166			$	2,059,405				$	2,116,719

Total equity	$	165,148				$	173,707			$	182,202				$	180,093
Less: Intangible assets		3,027					3,239				3,452					3,669

Total average tangible equity	$	162,121				$	170,468			$	178,750				$	176,424

(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 (loss).

(4)

CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited) (continued)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

(Dollars in thousands)


	March 31,		December 31,		March 31,
SECURITIES	2011		2010		2010
U.S. Treasury and U.S. Government Agencies	$	4,208	$	4,212	$	4,192
Mortgage-backed		505,784		426,477		356,693
Obligations of states and political subdivisions		1,412		1,709		2,066
Other securities		2,746		2,742		3,035

Securities Available for Sale		514,150		435,140		365,986

Mortgage-backed		17,122		18,963		5,996
Obligations of states and political subdivisions		7,713		7,398		4,232
Other securities		1,000		500		0

Securities Held for Investment		25,835		26,861		10,228

Total Securities	$	539,985	$	462,001	$	376,214

LOANS
Construction and land development	$	75,718	$	79,306	$	151,257
Real estate mortgage		1,047,473		1,060,597		1,098,274
Installment loans to individuals		50,364		51,602		61,422
Commercial and financial		51,520		48,825		62,134
Other loans		308		278		191

Total Loans	$	1,225,383	$	1,240,608	$	1,373,278

AVERAGE BALANCES, YIELDS AND RATES (1) (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


	2011							2010
	First Quarter							Fourth Quarter						First Quarter

	Average			Yield/				Average			Yield/			Average			Yield/
(Dollars in thousands)	Balance			Rate				Balance			Rate			Balance			Rate

Assets
Earning assets:
Securities:
Taxable	$	468,489			3.14	%		$	446,081			3.12	%	$	410,694			3.63	%
Nontaxable		3,921			7.45				4,293			5.59			6,256			6.71

Total Securities		472,410			3.17				450,374			3.15			416,950			3.73
Federal funds sold and other
investments		216,906			0.44				187,023			0.46			205,575			0.47
Loans, net		1,236,274			5.33				1,263,237			5.19			1,393,808			5.36

Total Earning Assets		1,925,590			4.26				1,900,634			4.24			2,016,333			4.52
Allowance for loan losses		(37,254	)						(39,443	)					(44,377	)
Cash and due from banks		30,122							33,024						30,975
Premises and equipment		35,936							36,460						39,773
Other assets		75,651							82,730						84,370

	$	2,030,045						$	2,013,405					$	2,127,074

Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
NOW	$	47,758			0.25	%		$	49,548			0.24	%	$	53,408			0.41	%
Savings deposits		116,896			0.11				110,382			0.11			102,777			0.24
Money market accounts		645,241			0.33				662,315			0.33			693,205			0.66
Time deposits		534,401			1.78				537,772			1.88			635,535			2.06
Federal funds purchased and other short term borrowings		93,279			0.28				83,183			0.27			103,676			0.25
Other borrowings		103,610			2.77				103,610			2.72			103,610			2.61

Total Interest-Bearing Liabilities		1,541,185			0.98				1,546,810			1.01			1,692,211			1.25
Demand deposits (noninterest-bearing)		312,310							280,412						272,122
Other liabilities		11,402							12,476						11,010

Total Liabilities		1,864,897							1,839,698						1,975,343
Shareholders’ equity		165,148							173,707						151,731

	$	2,030,045					$		2,013,405					$	2,127,074

Interest expense as a % of earning assets					0.78	%						0.82	%					1.05	%
Net interest income as a % of earning assets					3.48							3.42						3.48

(1)

On a fully taxable equivalent basis. All yields and rates have been computed on anannualized basis using amortized cost. Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.


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


		2009
(Dollars in millions)		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr

Construction and Land Development
Residential:
Condominiums	>$4 million	$	8.4	$	7.9	$	5.3	$	—
	<$4 million		7.9		8.8		3.7		6.1
Town homes	>$4 million		—		—		—		—
	<$4 million		4.2		2.3		—		—
Single Family Residences	>$4 million		6.6		6.5		—		—
	<$4 million		13.9		10.3		7.1		4.1
Single Family Land & Lots	>$4 million		21.8		21.8		5.9		5.9
	<$4 million		29.6		21.5		19.5		16.6
Multifamily	>$4 million		7.8		7.8		6.6		6.6
	<$4 million		17.0		9.8		9.5		8.3

TOTAL	>$4 million		44.6		44.0		17.8		12.5
TOTAL	<$4 million		72.6		52.7		39.8		35.1

GRAND TOTAL		$	117.2	$	96.7	$	57.6	$	47.6

QUARTERLY TRENDS – LOANS AT END OF PERIOD (Dollars in Millions) (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


		2010
((Dollars in millions)		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr

Construction and Land Development
Residential:
Condominiums	>$4 million	$	—	$	—	$	—	$	—
	<$4 million		0.9		0.9		0.9		0.9
Townhomes	>$4 million		—		—		—		—
	<$4 million		—		—		—		—
Single Family Residences	>$4 million		—		—		—		—
	<$4 million		3.9		3.6		3.8		—
Single Family Land & Lots	>$4 million		5.9		5.9		—		—
	<$4 million		15.7		9.6		10.3		7.0
Multifamily	>$4 million		6.6		4.3		—		—
	<$4 million		8.1		8.2		6.3		6.1

TOTAL	>$4 million		12.5		10.2		—		—
TOTAL	<$4 million		28.6		22.3		21.3		14.0

GRAND TOTAL		$	41.1	$	32.5	$	21.3	$	14.0

QUARTERLY TRENDS – LOANS AT END OF PERIOD (Dollars in Millions) (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


		2011		Nonperforming
( (Dollars in millions)		1st Qtr		1st Qtr		Number

Construction and Land Development
Residential:
Condominiums	>$4 million	$	—	$	—		—
	<$4 million		0.5		0.5		1
Townhomes	>$4 million		—		—		—
	<$4 million		—		—		—
Single Family Residences	>$4 million		—		—		—
	<$4 million		—		—		—
Single Family Land & Lots	>$4 million		—		—		—
	<$4 million		6.6		0.1		2
Multifamily	>$4 million		—		—		—
	<$4 million		6.1		1.0		2

TOTAL	>$4 million		—		—		—
TOTAL	<$4 million		13.2		1.6		5

GRAND TOTAL		$	13.2	$	1.6		5

QUARTERLY TRENDS – LOANS AT END OF PERIOD (Dollars in Millions) (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


	2009
(Dollars in millions)	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr

Construction and land development
Residential
Condominiums	$	16.3	$	16.7	$	9.0	$	6.1
Townhomes		4.2		2.3		—		—
Single family residences		20.5		16.8		7.1		4.1
Single family land and lots		51.4		43.3		25.4		22.5
Multifamily		24.8		17.6		16.1		14.9

		117.2		96.7		57.6		47.6
Commercial
Office buildings		17.4		13.8		13.8		13.9
Retail trade		70.0		55.9		23.0		3.9
Land		60.9		51.2		50.8		45.6
Industrial		9.0		8.5		8.2		2.5
Healthcare		5.7		6.0		4.8		4.8
Churches and educational facilities		—		—		—		—
Lodging		0.6		—		—		—
Convenience stores		—		—		—		—
Marina		31.6		30.0		28.1		6.8
Other		6.2		1.4		—		—

		201.4		166.8		128.7		77.5
Individuals
Lot loans		34.0		32.4		30.7		29.3
Construction		16.2		11.8		11.1		8.5

		50.2		44.2		41.8		37.8

Total construction and land development		368.8		307.7		228.1		162.9
Real estate mortgages
Residential real estate
Adjustable		333.1		328.0		325.9		289.4
Fixed rate		90.8		90.6		89.5		88.6
Home equity mortgages		85.5		83.8		83.9		86.8
Home equity lines		60.3		60.1		59.7		60.1

		569.7		562.5		559.0		524.9
Commercial real estate
Office buildings		140.6		141.6		144.2		132.3
Retail trade		109.1		120.0		151.4		164.6
Land		—		—		—		—
Industrial		95.3		93.0		89.3		88.4
Healthcare		28.3		30.9		25.4		24.7
Churches and educational facilities		34.8		34.6		30.8		29.6
Recreation		1.7		1.4		3.3		3.0
Multifamily		27.2		31.7		35.1		29.7
Mobile home parks		3.0		5.6		5.6		5.4
Lodging		26.3		26.3		25.6		25.5
Restaurant		6.1		5.1		5.0		4.7
Agricultural		8.2		11.8		12.0		11.7
Convenience stores		23.3		23.2		22.8		22.1
Marina		18.1		18.0		5.9		15.8
Other		24.9		29.6		28.1		26.6

		546.9		572.8		584.5		584.1

Total real estate mortgages		1,116.6		1,135.3		1,143.5		1,109.0
Commercial & financial		75.5		71.8		66.0		61.1
Installment loans to individuals
Automobile and trucks		19.4		18.0		16.6		15.3
Marine loans		26.3		26.9		26.8		26.4
Other		25.7		24.3		23.3		22.3

		71.4		69.2		66.7		64.0
Other		0.3		0.3		0.3		0.5

	$	1,632.6	$	1,584.3	$	1,504.6	$	1,397.5

QUARTERLY TRENDS – LOANS AT END OF PERIOD (cont’d) (Dollars in Millions)

(Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


	2010								2011
(Dollars in millions)	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr

Construction and land development
Residential
Condominiums	$	0.9	$	0.9	$	0.9	$	0.9	$	0.5
Townhomes		—		—		—		—		—
Single family residences		3.9		3.6		3.8		—		—
Single family land and lots		21.6		15.5		10.3		7.0		6.6
Multifamily		14.7		12.5		6.3		6.1		6.1

		41.1		32.5		21.3		14.0		13.2
Commercial
Office buildings		13.7		—		—		—		—
Retail trade		3.9		—		—		—		—
Land		45.7		38.5		35.1		33.6		33.9
Industrial		2.5		0.3		0.3		—		—
Healthcare		—		—		—		—		—
Churches and educational facilities		—		—		—		—		—
Lodging		—		—		—		—		—
Convenience stores		—		—		��		0.2		0.5
Marina		6.8		—		—		—		—
Other		—		—		—		—		—

		72.6		38.8		35.4		33.8		34.4
Individuals
Lot loans		28.9		27.4		26.3		24.4		20.8
Construction		8.7		8.2		9.1		7.1		7.3

		37.6		35.6		35.4		31.5		28.1

Total construction and land development		151.3		106.9		92.1		79.3		75.7
Real estate mortgages
Residential real estate
Adjustable		290.5		295.9		300.9		303.3		308.6
Fixed rate		87.6		86.0		84.1		82.6		86.6
Home equity mortgages		89.1		79.0		74.4		73.4		67.7
Home equity lines		60.1		58.8		58.4		57.7		57.4

		527.3		519.7		517.8		517.0		520.3
Commercial real estate
Office buildings		131.1		128.2		122.9		122.0		121.3
Retail trade		163.5		155.9		152.0		151.5		150.6
Land		—		—		—		—		—
Industrial		81.7		84.0		79.8		78.0		76.3
Healthcare		29.1		29.4		29.0		30.0		26.6
Churches and educational facilities		29.1		28.5		29.4		28.8		28.6
Recreation		3.0		3.0		2.9		2.9		2.8
Multifamily		25.3		23.6		23.2		22.4		14.2
Mobile home parks		5.3		2.6		2.6		2.5		2.5
Lodging		23.5		23.4		22.1		21.9		21.7
Restaurant		4.7		4.6		4.5		4.5		4.2
Agricultural		11.4		10.8		10.7		10.6		9.2
Convenience stores		22.3		21.0		18.9		18.6		20.1
Marina		15.7		22.2		22.1		21.9		21.7
Other		25.3		25.6		26.8		28.0		27.4

		571.0		562.8		546.9		543.6		527.2

Total real estate mortgages		1,098.3		1,082.5		1,064.7		1,060.6		1,047.5
Commercial & financial		62.1		49.9		54.0		48.8		51.5
Installment loans to individuals
Automobile and trucks		14.4		12.9		11.6		10.9		10.1
Marine loans		25.3		27.3		19.7		19.8		19.4
Other		21.7		20.8		20.9		20.9		20.9

		61.4		61.0		52.2		51.6		50.4
Other		0.2		0.3		0.3		0.3		0.3

	$	1,373.3	$	1,300.6	$	1,263.3	$	1,240.6	$	1,225.4

QUARTERLY TRENDS – INCREASE (DECREASE) IN LOANS BY QUARTER (Unaudited)

(Dollars in Millions)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


	2009
(Dollars in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr

Construction and land development
Residential
Condominiums	$	(1.1	)	$	0.4		$	(7.7	)	$	(2.9	)
Townhomes		(1.9	)		(1.9	)		(2.3	)		—
Single family residences		(6.3	)		(3.7	)		(9.7	)		(3.0	)
Single family land and lots		(1.4	)		(8.1	)		(17.9	)		(2.9	)
Multifamily		(2.0	)		(7.2	)		(1.5	)		(1.2	)

		(12.7	)		(20.5	)		(39.1	)		(10.0	)
Commercial
Office buildings		0.1			(3.6	)		—			0.1
Retail trade		1.3			(14.1	)		(32.9	)		(19.1	)
Land		(12.4	)		(9.7	)		(0.4	)		(5.2	)
Industrial		(4.3	)		(0.5	)		(0.3	)		(5.7	)
Healthcare		5.7			0.3			(1.2	)		—
Churches and educational facilities		—			—			—			—
Lodging		0.6			(0.6	)		—			—
Convenience stores		—			—			—			—
Marina		0.9			(1.6	)		(1.9	)		(21.3	)
Other		0.2			(4.8	)		(1.4	)		—

		(7.9	)		(34.6	)		(38.1	)		(51.2	)
Individuals
Lot loans		(1.7	)		(1.6	)		(1.7	)		(1.4	)
Construction		(4.1	)		(4.4	)		(0.7	)		(2.6	)

		(5.8	)		(6.0	)		(2.4	)		(4.0	)

Total construction and land development		(26.4	)		(61.1	)		(79.6	)		(65.2	)
Real estate mortgages
Residential real estate
Adjustable		4.1			(5.1	)		(2.1	)		(36.5	)
Fixed rate		(4.7	)		(0.2	)		(1.1	)		(0.9	)
Home equity mortgages		0.7			(1.7	)		0.1			2.9
Home equity lines		1.8			(0.2	)		(0.4	)		0.4

		1.9			(7.2	)		(3.5	)		(34.1	)
Commercial real estate
Office buildings		(5.8	)		1.0			2.6			(11.9	)
Retail trade		(2.8	)		10.9			31.4			13.2
Land		—			—			—			—
Industrial		0.6			(2.3	)		(3.7	)		(0.9	)
Healthcare		(0.9	)		2.6			(5.5	)		(0.7	)
Churches and educational facilities		(0.4	)		(0.2	)		(3.8	)		(1.2	)
Recreation		—			(0.3	)		1.9			(0.3	)
Multifamily		—			4.5			3.4			(5.4	)
Mobile home parks		—			2.6			—			(0.2	)
Lodging		(0.3	)		—			(0.7	)		(0.1	)
Restaurant		(0.1	)		(1.0	)		(0.1	)		(0.3	)
Agricultural		(0.3	)		3.6			0.2			(0.3	)
Convenience stores		(0.2	)		(0.1	)		(0.4	)		(0.7	)
Marina		(0.1	)		(0.1	)		(12.1	)		9.9
Other		(0.5	)		4.7			(1.5	)		(1.5	)

		(10.8	)		25.9			11.7			(0.4	)

Total real estate mortgages		(8.9	)		18.7			8.2			(34.5	)
Commercial & financial		(7.3	)		(3.7	)		(5.8	)		(4.9	)
Installment loans to individuals
Automobile and trucks		(1.4	)		(1.4	)		(1.4	)		(1.3	)
Marine loans		0.3			0.6			(0.1	)		(0.4	)
Other		(0.4	)		(1.4	)		(1.0	)		(1.0	)

		(1.5	)		(2.2	)		(2.5	)		(2.7	)
Other		—			—			—			0.2

	$	(44.1	)	$	(48.3	)	$	(79.7	)	$	(107.1	)

QUARTERLY TRENDS – INCREASE (DECREASE) IN LOANS BY QUARTER (cont’d)

(Dollars in Millions) (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


	2010												2011
(Dollars in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr

Construction and land development
Residential
Condominiums	$	(5.2	)	$	—		$	—		$	—		$	(0.4	)
Townhomes		—			—			—			—			—
Single family residences		(0.2	)		(0.3	)		0.2			(3.8	)		—
Single family land and lots		(0.9	)		(6.1	)		(5.2	)		(3.3	)		(0.4	)
Multifamily		(0.2	)		(2.2	)		(6.2	)		(0.2	)		—

		(6.5	)		(8.6	)		(11.2	)		(7.3	)		(0.8	)
Commercial
Office buildings		(0.2	)		(13.7	)		—			—			—
Retail trade		—			(3.9	)		—			—			—
Land		0.1			(7.2	)		(3.4	)		(1.5	)		0.3
Industrial		—			(2.2	)		—			(0.3	)		—
Healthcare		(4.8	)		—			—			—			—
Churches and educational facilities		—			—			—			—			—
Lodging		—			—			—			—			—
Convenience stores		—			—			—			0.2			0.3
Marina		—			(6.8	)		—			—			—
Other		—			—			—			—			—

		(4.9	)		(33.8	)		(3.4	)		(1.6	)		0.6
Individuals
Lot loans		(0.4	)		(1.5	)		(1.1	)		(1.9	)		(3.6	)
Construction		0.2			(0.5	)		0.9			(2.0	)		0.2

		(0.2	)		(2.0	)		(0.2	)		(3.9	)		(3.4	)

Total construction and land development		(11.6	)		(44.4	)		(14.8	)		(12.8	)		(3.6	)
Real estate mortgages
Residential real estate
Adjustable		1.1			5.4			5.0			2.4			5.3
Fixed rate		(1.0	)		(1.6	)		(1.9	)		(1.5	)		4.0
Home equity mortgages		2.3			(10.1	)		(4.6	)		(1.0	)		(5.7	)
Home equity lines		—			(1.3	)		(0.4	)		(0.7	)		(0.3	)

		2.4			(7.6	)		(1.9	)		(0.8	)		3.3
Commercial real estate
Office buildings		(1.2	)		(2.9	)		(5.3	)		(0.9	)		(0.7	)
Retail trade		(1.1	)		(7.6	)		(3.9	)		(0.5	)		(0.9	)
Land		—			—			—			—			—
Industrial		(6.7	)		2.3			(4.2	)		(1.8	)		(1.7	)
Healthcare		4.4			0.3			(0.4	)		1.0			(3.4	)
Churches and educational facilities		(0.5	)		(0.6	)		0.9			(0.6	)		(0.2	)
Recreation		—			—			(0.1	)		—			(0.1	)
Multifamily		(4.4	)		(1.7	)		(0.4	)		(0.8	)		(8.2	)
Mobile home parks		(0.1	)		(2.7	)		—			(0.1	)		—
Lodging		(2.0	)		(0.1	)		(1.3	)		(0.2	)		(0.2	)
Restaurant		—			(0.1	)		(0.1	)		—			(0.3	)
Agricultural		(0.3	)		(0.6	)		(0.1	)		(0.1	)		(1.4	)
Convenience stores		0.2			(1.3	)		(2.1	)		(0.3	)		1.5
Marina		(0.1	)		6.5			(0.1	)		(0.2	)		(0.2	)
Other		(1.3	)		0.3			1.2			1.2			(0.6	)

		(13.1	)		(8.2	)		(15.9	)		(3.3	)		(16.4	)

Total real estate mortgages		(10.7	)		(15.8	)		(17.8	)		(4.1	)		(13.1	)
Commercial & financial		1.0			(12.2	)		4.1			(5.2	)		2.7
Installment loans to individuals
Automobile and trucks		(0.9	)		(1.5	)		(1.3	)		(0.7	)		(0.8	)
Marine loans		(1.1	)		2.0			(7.6	)		0.1			(0.4	)
Other		(0.6	)		(0.9	)		0.1			—			—

		(2.6	)		(0.4	)		(8.8	)		(0.6	)		(1.2	)
Other		(0.3	)		0.1			—			—			—

	$	(24.2	)	$	(72.7	)	$	(37.3	)	$	(22.7	)	$	(15.2	)

Seacoast Banking Corporation of Florida (SBCF) 8-KSeacoast Reports Results for First Quarter 2011