STUART, Fla., Jan. 27 /PRNewswire-FirstCall/ -- Seacoast Banking
Corporation of Florida (Nasdaq: SBCF), a bank holding company whose principal
subsidiary is Seacoast National Bank, today reported a loss of $18.1 million
or $0.95 per average common diluted share for the fourth quarter, compared to
net income available to common shareholders of $1.9 million or $0.10 per
average common diluted share in the fourth quarter a year ago. For the year
2008, net income available to common shareholders was a loss of $41.1 million
or $2.16 per average common diluted share, compared to net income of $9.8
million or $0.51 per average common diluted share in 2007.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050916/SEACOASTLOGO )
The Company's results for the year and the fourth quarter were impacted by
the unprecedented housing market decline and its effect on residential
construction and land development loans. A comprehensive effort to reduce
this exposure (begun in 2007) was continued during 2008, resulting in a
decline in this portfolio to 7.8 percent of total loans from 20.2 percent in
early 2007. The reduced exposure resulted from timely and aggressive
collection efforts, charge-offs and a significant volume of loan sales
throughout the year, including $29 million in sales closed during the fourth
quarter of 2008. The reduction in the Company's exposure to residential
construction and land development loans, conducted in response to
deteriorating market conditions, resulted in significant losses in 2008, but
should reduce earnings volatility in the future.
The Company's capital position remains strong with a total risk-based
capital ratio improving from 11.7 percent at September 30, 2008 to
approximately 13.8 percent at year-end 2008. This ratio is expected to
continue to improve due to a decline in risk-based asset levels and improved
earnings in 2009. In December 2008, the Company sold $50 million in Series A
Perpetual Preferred Stock to the United States Department of the Treasury
through its participation in the Troubled Assets Relief Program ("TARP")
Capital Purchase Program, which further strengthened the Company's already
"well capitalized" status. A stronger capital base allowed the Company to
increase its local residential lending over the prior quarter with over $36
million in residential and consumer loans closed or approved at year-end, up
16 percent compared to the third quarter. In addition, working with
distressed borrowers, the Company entered into various loan restructuring
arrangements, impacting both retail and commercial customers. The Company
expects to continue to prudently explore opportunities to work with customers
experiencing distress, as well as increase credit availability to qualified
residential homeowners as a result of its improved capital position.
Liquidity remains strong and stable, supported by the Bank's diverse local
retail and commercial deposit base, no overnight borrowings and over $800
million of excess liquidity available at December 31, 2008. The Company's
outstanding wholesale funding represented approximately 7 percent of total
assets at year-end 2008, comprised of longer term Federal Home Loan advances
and a small portfolio of brokered certificates of deposit. During July 2008,
the Company tested its ability to access the brokered certificates of deposit
market and had approximately $75 million in brokered deposits at year-end, the
majority having maturities ranging from three months to one year. In
addition, during the second half of 2008, some the Bank's existing customers
utilized the CDARS program to obtain 100 percent FDIC insurance coverage for
larger balance certificate of deposits which are required to be classified as
brokered certificates.
During the fourth quarter, the Company undertook a comprehensive review of
its expense structure and developed a plan to reduce expenses by $7.6 million
(annualized) over the next year. Reductions in overhead totaling $5.0 million
have been implemented and are effective January 1, 2009. These savings will
be offset by increased FDIC insurance costs of approximately $2.3 million
compared with 2008, as a result of the restoration of premiums by the FDIC
during the last year, anticipated increases in the premium rates and the
Company's participation in the FDIC's Temporary Liquidity Guarantee Program.
The Company believes other cost-saving measures may be implemented during 2009
that are currently under consideration and which will be communicated with the
quarterly announcements of earnings during 2009. The expense reductions
impacting 2009 are broad and include the elimination of bonus compensation for
most positions and profit-sharing contributions for all associates, reductions
in matching contributions associated with salary savings plans, lower
credit-related costs, executive retirements, job eliminations, branch
consolidations, freezing of executive salaries and board compensation, and
reduced salary increases for other associates. Executive cash incentive
compensation was not paid in 2008 and is not anticipated to be paid in 2009.
Net interest income (on a tax equivalent basis) was $17.5 million, lower
than the $20.7 million for the fourth quarter 2007 and $1.7 million below
third quarter 2008 as a result of a decline in loans, lower loan yields and
higher nonperforming loans. These adverse impacts were partially offset by
reduced deposit costs, but still produced a lower net interest margin, which
totaled 3.32 percent, down 39 basis points in the fourth quarter 2008 compared
with 3.71 percent for the same quarter 2007 and 3.57 percent for the third
quarter 2008.
Average loans outstanding during the fourth quarter 2008 were $176.1
million lower than the same quarter of 2007, and ending loans (net of unearned
income) were $221.7 million or 11.7 percent lower than a year ago. The yield
on loans in the fourth quarter 2008 was 127 basis points lower than the same
period in 2007. Nonperforming loans at year-end 2008 were $20.1 million
higher compared to 2007. Average noninterest bearing deposits in the fourth
quarter 2008 declined by $61.0 million compared to the same period in 2007.
More recently, noninterest bearing deposits at December 31, 2008 totaled $275
million, a decline of $10 million on a linked quarter basis. These declines
in deposits are primarily the result of a decline in the Company's central
Florida region, as explained below, and customers generally maintaining lower
average balances due to the economic slowdown and an increased demand for
interest bearing deposits, particularly certificates of deposit. Average
interest bearing deposits in the fourth quarter totaled $1.56 billion,
unchanged when compared to the same quarter for 2007. As a result of the low
interest rate environment, customers have deposited more funds into
certificates of deposit, while maintaining lower average balances in savings
and other liquid deposit products that pay no interest or a lower interest
rate. Average balances for certificates of deposits increased by $121 million
to $738 million for the fourth quarter of 2008 compared to the same period in
2007. The average rate paid in the fourth quarter 2008 for certificates of
deposits was 3.59 percent, 123 basis points lower than the rate paid for the
same period in 2007.
Total deposits plus sweep repurchase agreements totaled $1.97 billion at
year-end 2008, and were lower by $107.5 million compared to the prior year.
The Company's central Florida region's deposits and sweep repurchase
agreements declined by $195 million, attributable to the real estate related
economic decline impacting its commercial customers' business activities
resulting in lower average deposit balances.
As reported throughout the year, the Company has been executing a retail
core deposit strategy and has experienced strong growth in core deposit
customer relationships when compared to the prior year's results. While total
deposits declined for the reasons discussed above, deposit growth in the
Company's other markets was stronger and is producing better than expected
deposit growth. New personal checking relationships have increased as a
result of the new retail deposit growth strategy, which has improved market
share, increased average services per household and decreased customer
attrition. New personal checking household average deposit balances and
average services per household have increased by 68 percent and 17 percent,
respectively, compared to new personal checking households for the same period
in 2007.
During the quarter, many of the Company's residential development loans
continued to deteriorate as market conditions remained stressed, and as a
result, a number of loans previously identified as problem credits were placed
on nonaccrual status. Nonperforming loans grew by approximately $11 million
from the third quarter of 2008 to $87 million. Approximately $29 million in
larger residential construction and development loans were sold during the
quarter, including approximately $18 million that were nonperforming at the
end of the third quarter. Our strengthened capital position, resulting from
participation in the government funded TARP Capital Purchase Program, allowed
the Company to pursue troubled debt restructures with several commercial and
retail borrowers during the quarter.
"We continue to pursue a comprehensive approach to reduce our exposure to
residential construction and development loans," said Dennis S. Hudson, III,
Chairman and Chief Executive Officer. "Because we began these efforts early,
well ahead of the industry as a whole, we achieved significant progress during
2008. This was accomplished through aggressive loan sales, write-downs and,
where possible, working with performing borrowers to discount and sell
product." The residential construction and development portfolio which peaked
at $340.0 million at the end of 2006 was reduced to $295.1 million at the end
of 2007 and reduced significantly to $129.9 million at December 31, 2008.
Moreover, a focus on reducing large loan exposures in this portfolio during
2008 resulted in a reduction in loans of $4 million and larger from $163.7
million or 70 percent of total risk-based capital at March 31, 2008 to $50.4
million or 22 percent of total risk based capital at year-end. "While
painful, this comprehensive approach is designed to lower the Company's credit
risk profile as quickly as possible during this period of dramatic and
continuing deterioration. The number of large balance exposures was
materially reduced during 2008, and as a result we expect loss severity and
loss volatility coming out of this portfolio will improve in the coming year,"
added Mr. Hudson.
The Company has no exposure to loans or investments with sub-prime
collateral, nor has it ever originated or purchased Alt-A loans or option-ARM
loans which have recently been a cause for concern in the industry. The
Company's residential and consumer loan portfolios have evidenced increased
stress, but are expected to perform reasonably well in light of current market
conditions.
Other highlights for the total year and fourth quarter 2008:
-- Tangible common equity to tangible assets totaled 5.37 percent,
tangible total equity equaled 7.30 percent at year-end, and all regulatory
capital ratios exceeded regulatory standards for "well capitalized" status;
-- Loan loss reserves remained a strong 1.75 percent compared to 1.15
percent at the end of the prior year;
-- Residential loans in the process of foreclosure declined $1.3 million
from the third quarter 2008 to $4.2 million at the end of the year;
-- Internally criticized loans, which grew significantly over the past two
years as a result of deteriorating market conditions, declined in the second
half of 2008;
-- The retail core deposit strategy, which began in the second quarter
2008, produced a total of 7,387 new households for the year, an increase of
11.6 percent compared to the prior year. During the fourth quarter, the
impact was more significant as approximately 1,800 new households were added,
an increase of 28.8 percent over fourth quarter 2007;
-- Net interest income totaled $77.5 million for the year, and the net
interest margin was 3.58 percent, 34 basis points lower than the prior year;
-- Average cost of interest bearing liabilities for the fourth quarter
totaled 2.52 percent, down 119 basis points from the fourth quarter of 2007;
and
-- Noninterest expenses totaled $78.2 million for the year 2008, in line
with expectations and $791,000 higher than year ended 2007.
Operating earnings (before the provision for loan losses and taxes) for
the quarter totaled approximately $1.6 million, down from $4.3 million in the
third quarter 2008 as a result of one-time expenses totaling approximately
$900,000, increased credit-related costs of $200,000, weak fee-based revenues
due to the soft economy, and lower net interest income caused by both negative
loan growth, elevated nonaccrual loans and the Federal Reserve lowering rates
175 basis points in the fourth quarter. It is expected that net interest
income will benefit from the lower interest rate environment as deposit costs
are lowered beginning in the first quarter 2009. Operating earnings
pre-provision are also expected to improve due to the expense reductions as
discussed above.
Noninterest expenses totaled $20.4 million, up $598,000 from the prior
year's fourth quarter and $490,000 from the third quarter of 2008. Legal and
professional fees associated with loan collection efforts of approximately
$900,000 and nonrecurring expenses of approximately $900,000 accounted for the
increase over the prior year's fourth quarter results, and nonrecurring
expenses accounted for the increase linked quarter. For the year, noninterest
expenses totaled $78.2 million compared to $77.4 million a year ago. The
Company believes that the higher level of legal costs experienced this year,
and particularly more recently, should begin to decline in 2009, as the
majority of loans which have accounted for the elevated expense levels are now
further along in the collection process. In addition, loan sales completed
over the past three quarters should result in lower collection costs going
forward.
Noninterest income, excluding securities gains and losses and losses on
repossessed and foreclosed assets, declined 6.4 percent when compared to the
third quarter of 2008, reflecting decreased revenues primarily from wealth
management fees, marine finance fees, mortgage banking fees and merchant
income. The tight credit markets were responsible for much lower marine
finance activities and slower mortgage originations, although applications in
December 2008 for residential loans increased significantly as mortgage rates
were lower than in previous months. Merchant income, wealth management, and
other revenue tied to transaction volumes were all lower as a result of the
economic recession. The Company expects these revenue sources to be weaker
until the economy begins to improve.
Seacoast will host a conference call on Wednesday, January 28, 2009 at
9:00 a.m. (Eastern Time) to discuss the earnings results and business trends.
Investors may call in (toll-free) by dialing (866) 712-7678 (access code:
5861577; leader: Dennis S. Hudson). Charts will be used during the conference
call and may be accessed at Seacoast's website at www.seacoastbanking.net by
selecting "Presentations" under the heading "Investor Services". A replay of
the call will be available for one month, beginning the afternoon of January
28, by dialing (877) 213-9653 (domestic), using the passcode 5861577.
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.
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, 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, 2007 under "Special
Cautionary Notice Regarding Forward-Looking Statements" and "Risk Factors",
and otherwise in our SEC reports and filings, including our quarterly report
on Form 10Q/A for the nine months ended September 30, 2008. Such reports are
available upon request from the Company, or from the Securities and Exchange
Commission, including through the SEC's Internet website at
http://www.sec.gov.
FINANCIAL HIGHLIGHTS (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Three Months Ended Twelve Months Ended
(Dollars in thousands, December 31, December 31,
except per share data) 2008 2007 2008 2007
Summary of Earnings
Net income (loss) $(17,996) $1,903 $(40,997) $9,765
Net income (loss)
available to common
shareholders (18,079) 1,903 (41,080) 9,765
Net interest income (1) 17,535 20,724 77,517 84,771
Performance Ratios
Return on average assets-
GAAP basis (2), (3) (3.17)% 0.32% (1.77)% 0.42%
Return on average tangible
assets (2), (3), (4), (5) (3.22) 0.36 (1.78) 0.61
Return on average shareholders'
equity GAAP basis(2),(3) (36.57) 3.48 (20.01) 4.46
Net interest margin (1), (2) 3.32 3.71 3.58 3.92
Per Share Data
Net income (loss) diluted-
GAAP basis $(0.95) $0.10 $(2.16) $0.51
Net income (loss) basic-
GAAP basis (0.95) 0.10 (2.16) 0.52
Cash dividends declared 0.01 0.16 0.34 0.64
(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) on available for sale securities 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) Excludes securities restructuring losses of $5,118 (or $3,297, net of
taxes) recorded in first quarter 2007.
n/m = not meaningful
FINANCIAL HIGHLIGHTS (cont'd) (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
(Dollars in thousands, December 31, Increase/
except per share data) 2008 2007 (Decrease)
Credit Analysis
Net charge-offs year-to-date $81,148 $5,758 1,309.3 %
Net charge-offs to average loans 4.45 % 0.31 % 1,335.5
Loan loss provision year-to-date $88,634 $12,745 595.4
Allowance to loans at end of
period 1.75 % 1.15 % 52.2
Nonperforming loans $86,970 $67,834 28.2
Other real estate owned 5,035 735 585.0
Total nonperforming assets $92,005 $68,569 34.2
Nonperforming assets to loans
and other real estate owned at
end of period 5.47 % 3.61 % 51.5
Nonperforming assets to total
assets 3.97 2.83 40.3
Selected Financial Data
Total assets $2,319,036 $2,419,874 (4.2)
Securities - trading (at fair
value) 0 13,913 (100.0)
Securities - available for sale
(at fair value) 318,030 254,916 24.8
Securities - held for investment
(at amortized cost) 27,871 31,900 (12.6)
Net loans 1,647,340 1,876,487 (12.2)
Deposits 1,810,441 1,987,333 (8.9)
Total shareholders' equity 220,518 214,381 2.9
Common shareholders' equity 176,731 214,381 (17.6)
Book value per share common 9.22 11.22 (17.8)
Tangible book value per share 8.63 8.26 4.5
Tangible common book value per share 6.34 8.26 (23.2)
Average shareholders' equity
to average assets 8.87 % 9.41 % (5.7)
Tangible common equity to
tangible assets 5.37 6.68 (19.6)
Average Balances (Year-to-Date)
Total assets $2,311,052 $2,324,209 (0.6)
Less: intangible assets 55,817 57,004 (2.1)
Total average tangible assets $2,255,235 $2,267,205 (0.5)
Total equity $204,933 $218,728 (6.3)
Less: intangible assets 55,817 57,004 (2.1)
Total average tangible equity $149,116 $161,724 (7.8)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Three Months Ended Twelve Months Ended
December 31, December 31,
(Dollars in thousands,
except per share data) 2008 2007 2008 2007
Interest on securities:
Taxable $3,663 $3,438 $14,198 $14,812
Nontaxable 78 90 348 364
Interest and fees on loans 24,788 33,503 111,313 133,299
Interest on federal funds
sold and other investments 151 420 1,225 1,631
Total Interest Income 28,680 37,451 127,084 150,106
Interest on deposits 3,179 6,540 17,295 24,300
Interest on time certificates 6,654 7,495 26,117 29,580
Interest on borrowed money 1,380 2,778 6,441 11,757
Total Interest Expense 11,213 16,813 49,853 65,637
Net Interest Income 17,467 20,638 77,231 84,469
Provision for loan losses 30,656 3,813 88,634 12,745
Net Interest Income
(Loss) After Provision
for Loan Losses (13,189) 16,825 (11,403) 71,724
Noninterest income:
Service charges on
deposit accounts 1,833 2,070 7,389 7,714
Trust income 574 627 2,344 2,575
Mortgage banking fees 184 278 1,118 1,409
Brokerage commissions
and fees 447 572 2,097 2,935
Marine finance fees 318 596 2,304 2,865
Debit card income 574 563 2,453 2,306
Other deposit based
EFT fees 83 103 359 451
Merchant income 487 676 2,399 2,841
Other income (1) (13) 474 1,102 1,814
4,487 5,959 21,565 24,910
Securities
restructuring losses 0 0 0 (5,118)
Securities gains, net 0 24 355 70
Total Noninterest
Income 4,487 5,983 21,920 19,862
Noninterest expenses:
Salaries and wages 7,083 7,747 30,159 31,575
Employee benefits 1,664 1,918 7,173 7,337
Outsourced data
processing costs 1,812 1,884 7,612 7,581
Telephone / data lines 498 468 1,896 1,905
Occupancy expense 2,256 1,956 8,292 7,677
Furniture and equipment
expense 706 754 2,841 2,863
Marketing expense 600 707 2,614 3,075
Legal and professional
fees 2,117 1,068 5,662 4,070
FDIC assessments 1,034 56 2,028 225
Amortization of
intangibles 315 315 1,259 1,259
Other expense 2,305 2,919 8,678 9,856
Total Noninterest
Expenses 20,390 19,792 78,214 77,423
Income (Loss)
Before Income
Taxes (29,092) 3,016 (67,697) 14,163
Provision (benefit) for
income taxes (11,096) 1,113 (26,700) 4,398
Net Income (Loss) (17,996) 1,903 (40,997) 9,765
US Treasury Preferred
Dividends 83 0 83 0
Net Income (Loss)
Available to Common
Shareholders $(18,079) $1,903 $(41,080) $9,765
Per share common stock:
Net income (loss)
diluted $(0.95) $0.10 $(2.16) $0.51
Net income (loss)
basic (0.95) 0.10 (2.16) 0.52
Cash dividends
declared 0.01 0.16 0.34 0.64
Average diluted shares
outstanding 19,044,853 19,088,824 18,997,757 19,157,597
Average basic shares
outstanding 19,044,853 18,906,221 18,997,757 18,936,541
(1) Includes write down on repossessed assets
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
(Dollars in thousands, December 31, December 31,
except share amounts) 2008 2007
Assets
Cash and due from banks $46,002 $50,490
Federal funds sold and other investments 105,190 47,985
Total Cash and Cash Equivalents 151,192 98,475
Securities:
Trading (at fair value) 0 13,913
Available for sale (at fair value) 318,030 254,916
Held for investment
(at amortized cost) 27,871 31,900
Total Securities 345,901 300,729
Loans available for sale 2,165 3,660
Loans, net of unearned income 1,676,728 1,898,389
Less: Allowance for loan losses (29,388) (21,902)
Net Loans 1,647,340 1,876,487
Bank premises and equipment, net 44,122 40,926
Other real estate owned 5,035 735
Goodwill and other intangible assets 55,193 56,452
Other assets 68,088 42,410
$2,319,036 $2,419,874
Liabilities and Shareholders' Equity
Liabilities
Deposits
Demand deposits (noninterest bearing) $275,262 $327,646
Savings deposits 802,201 1,056,025
Other time certificates 326,473 332,838
Brokered time certificates 100,463 0
Time certificates of $100,000 or more 306,042 270,824
Total Deposits 1,810,441 1,987,333
Federal funds purchased and securities
sold under agreements to repurchase,
maturing within 30 days 157,496 88,100
Borrowed funds 65,302 65,030
Subordinated debt 53,610 53,610
Other liabilities 11,669 11,420
2,098,518 2,205,493
Shareholders' Equity
Preferred stock 43,787 0
Common stock 1,928 1,920
Additional paid in capital 99,788 90,924
Retained earnings 74,795 122,396
Treasury stock (1,839) (1,193)
218,459 214,047
Accumulated other comprehensive gain, net 2,059 334
Total Shareholders' Equity 220,518 214,381
$2,319,036 $2,419,874
Common Shares Outstanding 19,171,779 19,110,089
Note: The balance sheet at December 31, 2007 has been derived from the
audited financial statements at that date.
CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
QUARTERS
2008
(Dollars in thousands, Last 12
except per share data) Fourth Third Second First Months
Net income (loss) $(17,996) $(3,448) $(21,316) $1,763 $(40,997)
Operating Ratios
Return on average
assets-GAAP
basis (2), (3) (3.17)% (0.60)% (3.65)% 0.30% (1.77)%
Return on average
tangible assets
(2), (3), (4) (3.22) (0.58) (3.70) 0.34 (1.78)
Return on average
shareholders'
equity-GAAP basis
(2), (3) (36.57) (7.13) (39.79) 3.28 (20.01)
Net interest margin
(1), (2) 3.32 3.57 3.69 3.74 3.58
Average equity to
average assets 8.68 8.43 9.17 9.17 8.87
Credit Analysis
Net charge-offs $33,916 $9,290 $33,541 $4,401 $81,148
Net charge-offs to
average loans 7.76% 2.06% 7.28% 0.93% 4.45%
Loan loss
provision $30,656 $10,241 $42,237 $5,500 $88,634
Allowance to loans
at end of period 1.75% 1.87% 1.75% 1.22%
Nonperforming
loans $86,970 $75,793 $76,224 $64,730
Other real estate
owned 5,035 4,551 4,547 940
Nonperforming
assets $92,005 $80,344 $80,771 $65,670
Nonperforming assets to
loans and other real
estate owned at
end of period 5.47% 4.60% 4.45% 3.50%
Nonperforming assets
to total assets 3.97 3.61 3.52 2.74
Nonaccrual loans and
accruing loans 90
days or more past due
to loans outstanding
at end of period 5.30 4.42 4.23 3.46
Per Share Common Stock
Net income (loss)
diluted-GAAP
basis $(0.95) $(0.18) $(1.12) $0.09 $(2.16)
Net income (loss)
basic-GAAP basis (0.95) (0.18) (1.12) 0.09 (2.16)
Cash dividends
declared 0.01 0.01 0.16 0.16 0.34
Book value per
share common 9.22 9.59 9.90 11.25
Average Balances
Total assets $2,255,036 $2,282,821 $2,349,749 $2,357,528
Less: Intangible
assets 55,346 55,662 55,976 56,291
Total average
tangible
assets $2,199,690 $2,227,159 $2,293,773 $2,301,237
Total equity $195,770 $192,469 $215,448 $216,283
Less: Intangible
assets 55,346 55,662 55,976 56,291
Total average
tangible
equity $140,424 $136,807 $159,472 $159,992
(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 operating
earnings growth.
CONSOLIDATED QUARTERLY FINANCIAL DATA
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
(Dollars in thousands)
December 31, December 31,
SECURITIES 2008 2007
U.S. Treasury and U.S. Government Agencies $0 $13,913
Securities Trading 0 13,913
U.S. Treasury and U.S. Government Agencies 22,380 30,405
Mortgage-backed 290,424 218,937
Obligations of states and political
subdivisions 2,069 2,057
Other securities 3,157 3,517
Securities Available for Sale 318,030 254,916
Mortgage-backed 22,247 25,755
Obligations of states and political
subdivisions 5,624 6,145
Securities Held for Investment 27,871 31,900
Total Securities $345,901 $300,729
December 31, December 31,
LOANS 2008 2007
Construction and land development $395,243 $609,567
Real estate mortgage 1,125,465 1,074,814
Instalment loans to individuals 72,908 86,362
Commercial and financial 82,765 126,695
Other loans 347 951
Total Loans $1,676,728 $1,898,389
AVERAGE BALANCES, YIELDS AND RATES (1) (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2008 2007
Fourth Quarter Third Quarter Fourth Quarter
Average Yield/ Average Yield/ Average Yield/
Balance Rate Balance Rate Balance Rate
(Dollars in thousands)
Assets
Earning assets:
Securities:
Taxable $299,410 4.89% $276,777 4.94% $263,562 5.22%
Nontaxable 7,886 5.93 8,151 6.53 8,168 6.46
Total
Securities 307,296 4.92 284,928 4.99 271,730 5.26
Federal funds
sold and other
investments 55,101 1.09 53,220 2.41 33,351 5.00
Loans, net 1,737,896 5.68 1,798,357 6.01 1,913,991 6.95
Total Earning
Assets 2,100,293 5.45 2,136,505 5.78 2,219,072 6.71
Allowance for loan
losses (31,489) (37,705) (22,607)
Cash and due from banks 36,743 35,788 46,752
Premises and equipment 44,121 43,378 40,233
Other assets 105,368 104,855 77,636
$2,255,036 $2,282,821 $2,361,086
Liabilities and
Shareholders' Equity
Interest-bearing
liabilities:
NOW $56,161 1.23% $72,691 1.65% $77,999 2.80%
Savings deposits 99,155 0.64 103,550 0.73 105,789 0.71
Money market
accounts 670,094 1.69 716,166 1.97 764,200 3.01
Time deposits 737,906 3.59 691,486 3.64 616,621 4.82
Federal funds
purchased and
other short term
borrowings 88,253 0.83 82,730 1.55 132,606 3.82
Other borrowings 118,697 4.01 118,705 3.92 102,987 5.78
Total
Interest-
Bearing
Liabil-
ities 1,770,266 2.52 1,785,328 2.64 1,800,202 3.71
Demand deposits
(noninterest-bearing) 276,759 293,951 336,432
Other liabilities 12,241 11,073 7,280
Total
Liabil-
ities 2,059,266 2,090,352 2,143,914
Shareholders' equity 195,770 192,469 217,172
$2,255,036 $2,282,821 $2,361,086
Interest expense as
a % of earning assets 2.12% 2.21% 3.01%
Net interest income
as a % of earning assets 3.32 3.57 3.71
(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.
QUARTERLY TRENDS - LOANS AT END OF PERIOD (Dollars in Millions)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2008
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Number
Construction and Land
Development
Residential:
Condominiums >$4 million $30.6 $26.3 $19.6 $8.6 1
<$4 million 26.6 21.1 13.0 8.8 7
Town homes >$4 million 19.4 17.1 17.1 - -
<$4 million 4.4 2.9 4.6 6.1 12
Single
Family >$4 million 20.8 21.2 13.5 11.9 2
Residences <$4 million 35.9 28.3 23.7 14.9 20
Single
Family Land >$4 million 85.1 64.3 40.3 22.1 3
& Lots <$4 million 27.0 30.8 29.9 30.7 53
Multifamily >$4 million 7.8 7.8 7.8 7.8 1
<$4 million 24.8 26.2 22.9 19.0 14
TOTAL >$4 million 163.7 136.7 98.3 50.4 7
TOTAL <$4 million 118.7 109.3 94.1 79.5 106
GRAND TOTAL $282.4 $246.0 $192.4 $129.9 113
QUARTERLY TRENDS - LOANS AT END OF PERIOD (Dollars in Millions)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Nonperforming
4th Qtr Number
Construction and Land
Development
Residential:
Condominiums >$4 million $- -
<$4million 2.8 1
Town homes >$4 million - -
<$4 million 5.1 2
Single
Family >$4 million - -
Residences <$4 million 5.7 9
Single
Family Land >$4 million 22.1 3
& Lots <$4 million 11.6 15
Multifamily >$4 million 7.8 1
<$4 million 5.1 4
TOTAL >$4 million 29.9 4
TOTAL <$4 million 30.3 31
GRAND TOTAL $60.2 35
QUARTERLY TRENDS - LOANS AT END OF PERIOD (Dollars in Millions)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2006 2007
4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Construction and land
development
Residential
Condominiums $94.8 $84.4 $74.2 $72.5 $60.2
Townhomes 10.4 9.9 11.3 25.0 25.0
Single family
residences 80.3 100.9 66.6 63.9 59.0
Single family land
and lots 106.3 107.7 129.0 128.4 116.4
Multifamily 48.2 48.7 46.6 33.8 34.5
340.0 351.6 327.7 323.6 295.1
Commercial
Office buildings 14.1 17.6 19.2 22.4 30.9
Retail trade 16.1 12.5 26.4 50.2 69.0
Land 93.5 93.4 99.4 86.2 82.6
Industrial 6.3 8.9 13.1 16.9 13.0
Healthcare 2.0 2.5 3.0 1.0 1.0
Churches and
educational
facilities 2.1 1.8 1.9 1.9 -
Lodging 2.1 4.8 11.2 11.2 11.2
Convenience stores 0.5 0.5 1.0 1.4 1.7
Marina 2.2 2.2 2.2 21.9 23.1
Other 0.9 2.8 12.8 8.6 9.9
139.8 147.0 190.2 221.7 242.4
Individuals
Lot loans 40.6 40.5 40.0 40.7 39.4
Construction 50.7 41.7 43.6 41.0 32.7
91.3 82.2 83.6 81.7 72.1
Total construction
and land development 571.1 580.8 601.5 627.0 609.6
Real estate mortgages
Residential real
estate
Adjustable 277.7 285.4 298.4 313.0 319.5
Fixed rate 87.9 87.9 87.6 88.1 87.5
Home equity
mortgages 95.9 97.3 90.0 90.8 91.4
Home equity lines 50.9 51.4 56.6 55.1 59.1
512.4 522.0 532.6 547.0 557.5
Commercial real
estate
Office buildings 109.2 113.4 116.1 125.6 131.7
Retail trade 50.9 62.0 62.8 74.9 76.2
Land - - - 2.6 5.3
Industrial 64.3 66.3 84.7 100.2 105.5
Healthcare 40.7 40.5 39.7 33.2 32.4
Churches and
educational
facilities 32.3 32.9 32.7 36.0 40.2
Recreation 4.4 4.4 4.5 4.7 3.0
Multifamily 9.9 8.4 10.4 11.3 13.8
Mobile home parks 6.0 3.0 4.0 4.0 3.9
Lodging 19.1 16.9 16.8 22.3 22.7
Restaurant 11.7 11.2 9.6 7.2 8.2
Agricultural 26.1 24.5 23.4 19.6 12.9
Convenience stores 22.0 22.2 23.6 23.5 23.2
Other 40.8 38.8 30.5 39.7 38.3
437.4 444.5 458.8 504.8 517.3
Total real estate
mortgages 949.8 966.5 991.4 1,051.8 1,074.8
Commercial & financial 128.1 112.1 139.0 135.1 126.7
Installment loans to
individuals
Automobile and trucks 22.3 23.3 23.6 24.8 25.0
Marine loans 32.5 30.1 26.6 24.8 33.2
Other 28.6 29.8 29.4 29.0 28.2
83.4 83.2 79.6 78.6 86.4
Other 0.7 0.7 1.6 0.6 0.9
$1,733.1 $1,743.3 $1,813.1 $1,893.1 $1,898.4
QUARTERLY TRENDS - LOANS AT END OF PERIOD (Dollars in Millions)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2008
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Construction and land development
Residential
Condominiums $57.2 $47.4 $32.6 $17.4
Townhomes 23.8 20.0 21.7 6.1
Single family residences 56.7 49.5 37.2 26.8
Single family land and lots 112.1 95.1 70.2 52.8
Multifamily 32.6 34.0 30.7 26.8
282.4 246.0 192.4 129.9
Commercial
Office buildings 29.1 31.1 27.8 17.3
Retail trade 60.4 63.6 68.5 68.7
Land 92.5 75.4 73.9 73.3
Industrial 16.9 20.8 20.7 13.3
Healthcare 1.0 1.0 - -
Churches and educational
facilities - 0.1 - -
Lodging - - - -
Convenience stores 1.8 - - -
Marina 26.8 28.9 30.5 30.7
Other 11.3 6.3 5.4 6.0
239.8 227.2 226.8 209.3
Individuals
Lot loans 39.4 40.0 38.4 35.7
Construction 32.4 27.1 27.4 20.3
71.8 67.1 65.8 56.0
Total construction and land
development 594.0 540.3 485.0 395.2
Real estate mortgages
Residential real estate
Adjustable 317.6 318.8 316.5 329.0
Fixed rate 89.1 90.2 93.4 95.5
Home equity mortgages 91.7 93.1 84.3 84.8
Home equity lines 56.3 59.4 59.7 58.5
554.7 561.5 553.9 567.8
Commercial real estate
Office buildings 144.3 142.3 143.6 146.4
Retail trade 83.8 93.5 101.6 111.9
Land - - 0.6 -
Industrial 104.3 93.3 92.2 94.7
Healthcare 39.9 33.6 31.6 29.2
Churches and educational
facilities 40.2 36.5 35.6 35.2
Recreation 2.8 1.8 1.8 1.7
Multifamily 20.0 19.1 19.2 27.2
Mobile home parks 3.2 3.1 3.1 3.0
Lodging 27.9 28.0 26.7 26.6
Restaurant 8.0 9.0 8.6 6.2
Agricultural 12.4 9.0 8.7 8.5
Convenience stores 23.1 24.9 23.6 23.5
Other 40.1 41.6 42.5 43.6
550.0 535.7 539.4 557.7
Total real estate mortgages 1,104.7 1,097.2 1,093.3 1,125.5
Commercial & financial 93.9 94.8 88.5 82.8
Installment loans to individuals
Automobile and trucks 24.1 23.0 21.9 20.8
Marine loans 33.3 25.2 26.0 26.0
Other 27.5 27.9 27.4 26.1
84.9 76.1 75.3 72.9
Other 0.5 0.4 0.5 0.3
$1,878.0 $1,808.8 $1,742.6 $1,676.7
QUARTERLY TRENDS - INCREASE (DECREASE) IN LOANS BY QUARTER
(Dollars in Millions)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2007
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Construction and land development
Residential
Condominiums $(10.4) $(10.2) $(1.7) $(12.3)
Townhomes (0.5) 1.4 13.7 -
Single family residences 20.6 (34.3) (2.7) (4.9)
Single family land and lots 1.4 21.3 (0.6) (12.0)
Multifamily 0.5 (2.1) (12.8) 0.7
11.6 (23.9) (4.1) (28.5)
Commercial
Office buildings 3.5 1.6 3.2 8.5
Retail trade (3.6) 13.9 23.8 18.8
Land (0.1) 6.0 (13.2) (3.6)
Industrial 2.6 4.2 3.8 (3.9)
Healthcare 0.5 0.5 (2.0) -
Churches and educational
facilities (0.3) 0.1 - (1.9)
Lodging 2.7 6.4 - -
Convenience stores - 0.5 0.4 0.3
Marina - - 19.7 1.2
Other 1.9 10.0 (4.2) 1.3
7.2 43.2 31.5 20.7
Individuals
Lot loans (0.1) (0.5) 0.7 (1.3)
Construction (9.0) 1.9 (2.6) (8.3)
(9.1) 1.4 (1.9) (9.6)
Total construction and land
development 9.7 20.7 25.5 (17.4)
Real estate mortgages
Residential real estate
Adjustable 7.7 13.0 14.6 6.5
Fixed rate - (0.3) 0.5 (0.6)
Home equity mortgages 1.4 (7.3) 0.8 0.6
Home equity lines 0.5 5.2 (1.5) 4.0
9.6 10.6 14.4 10.5
Commercial real estate
Office buildings 4.2 2.7 9.5 6.1
Retail trade 11.1 0.8 12.1 1.3
Land - - 2.6 2.7
Industrial 2.0 18.4 15.5 5.3
Healthcare (0.2) (0.8) (6.5) (0.8)
Churches and educational
facilities 0.6 (0.2) 3.3 4.2
Recreation - 0.1 0.2 (1.7)
Multifamily (1.5) 2.0 0.9 2.5
Mobile home parks (3.0) 1.0 - (0.1)
Lodging (2.2) (0.1) 5.5 0.4
Restaurant (0.5) (1.6) (2.4) 1.0
Agricultural (1.6) (1.1) (3.8) (6.7)
Convenience stores 0.2 1.4 (0.1) (0.3)
Other (2.0) (8.3) 9.2 (1.4)
7.1 14.3 46.0 12.5
Total real estate mortgages 16.7 24.9 60.4 23.0
Commercial & financial (16.0) 26.9 (3.9) (8.4)
Installment loans to individuals
Automobile and trucks 1.0 0.3 1.2 0.2
Marine loans (2.4) (3.5) (1.8) 8.4
Other 1.2 (0.4) (0.4) (0.8)
(0.2) (3.6) (1.0) 7.8
Other - 0.9 (1.0) 0.3
$10.2 $69.8 $80.0 $5.3
QUARTERLY TRENDS - INCREASE (DECREASE) IN LOANS BY QUARTER
(Dollars in Millions)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2008
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Construction and land development
Residential
Condominiums $(3.0) $(9.8) $(14.8) $(15.2)
Townhomes (1.2) (3.8) 1.7 (15.6)
Single family residences (2.3) (7.2) (12.3) (10.4)
Single family land and lots (4.3) (17.0) (24.9) (17.4)
Multifamily (1.9) 1.4 (3.3) (3.9)
(12.7) (36.4) (53.6) (62.5)
Commercial
Office buildings (1.8) 2.0 (3.3) (10.5)
Retail trade (8.6) 3.2 4.9 0.2
Land 9.9 (17.1) (1.5) (0.6)
Industrial 3.9 3.9 (0.1) (7.4)
Healthcare - - (1.0) -
Churches and educational
facilities - 0.1 (0.1) -
Lodging (11.2) - - -
Convenience stores 0.1 (1.8) - -
Marina 3.7 2.1 1.6 0.2
Other 1.4 (5.0) (0.9) 0.6
(2.6) (12.6) (0.4) (17.5)
Individuals
Lot loans - 0.6 (1.6) (2.7)
Construction (0.3) (5.3) 0.3 (7.1)
(0.3) (4.7) (1.3) (9.8)
Total construction and land
development (15.6) (53.7) (55.3) (89.8)
Real estate mortgages
Residential real estate
Adjustable (1.9) 1.2 (2.3) 12.5
Fixed rate 1.6 1.1 3.2 2.1
Home equity mortgages 0.3 1.4 (8.8) 0.5
Home equity lines (2.8) 3.1 0.3 (1.2)
(2.8) 6.8 (7.6) 13.9
Commercial real estate
Office buildings 12.6 (2.0) 1.3 2.8
Retail trade 7.6 9.7 8.1 10.3
Land (5.3) - 0.6 (0.6)
Industrial (1.2) (11.0) (1.1) 2.5
Healthcare 7.5 (6.3) (2.0) (2.4)
Churches and educational
facilities - (3.7) (0.9) (0.4)
Recreation (0.2) (1.0) - (0.1)
Multifamily 6.2 (0.9) 0.1 8.0
Mobile home parks (0.7) (0.1) - (0.1)
Lodging 5.2 0.1 (1.3) (0.1)
Restaurant (0.2) 1.0 (0.4) (2.4)
Agricultural (0.5) (3.4) (0.3) (0.2)
Convenience stores (0.1) 1.8 (1.3) (0.1)
Other 1.8 1.5 0.9 1.1
32.7 (14.3) 3.7 18.3
Total real estate mortgages 29.9 (7.5) (3.9) 32.2
Commercial & financial (32.8) 0.9 (6.3) (5.7)
Installment loans to individuals
Automobile and trucks (0.9) (1.1) (1.1) (1.1)
Marine loans 0.1 (8.1) 0.8 -
Other (0.7) 0.4 (0.5) (1.3)
(1.5) (8.8) (0.8) (2.4)
Other (0.4) (0.1) 0.1 (0.2)
$(20.4) $(69.2) $(66.2) $(65.9)
