STUART, Fla., April 23 /PRNewswire-FirstCall/ -- Seacoast Banking Corporation of Florida (Nasdaq: SBCF), a bank holding company whose principal subsidiary is Seacoast National Bank, today reported a first quarter 2009 net loss of $4.8 million compared to a net loss of $22.6 million for the fourth quarter of 2008. Including the impact of preferred stock of $937,000, the net loss applicable to common shareholders was $5.7 million or $0.30 per average common diluted share for the first quarter, compared to a net loss of $22.7 million or $1.19 per average common diluted share for the fourth quarter of 2008. Credit costs which were improved over the final quarter of 2008 remained high, while core earnings increased significantly due to reduced deposit costs, margin improvements, improved residential mortgage production and reductions in expenses.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050916/SEACOASTLOGO )
Other significant metrics for the first quarter 2009 include:
- The estimated total risk based capital ratio was 14.0 percent, unchanged from year end 2008;
- Tangible common equity to risk weighted assets was 7.08 percent unchanged from year end 2008;
- Liquidity remains strong and stable, supported by a diverse local retail and commercial deposit base, no overnight borrowings and over $800 million in excess liquidity sources available at March 31, 2009;
- Loan loss reserves increased to 1.99 percent compared to 1.22 percent at the end of the first quarter 2008;
- Total revenues were $22.9 million in the first quarter, up $976,000 or 17.8 percent annualized compared to the fourth quarter 2008;
- Residential mortgage applications increased by 121 percent from the fourth quarter of 2008 and 85 percent from the same quarter one year ago;
- A total of 2,581 new personal checking accounts were opened in the first quarter 2009, an increase of 30.9 percent compared to the fourth quarter 2008 and 11.3 percent increase over the results for the first quarter 2008;
- Average cost of deposits for the first quarter totaled 1.79 percent, down 34 basis points from the fourth quarter of 2008.
"We are beginning to see some signs of stability for residential real estate in our markets. Transactions have increased and inventories are headed down, despite the continued large volume of foreclosures. Most importantly, home prices are now showing some signs of firming in our markets and have achieved pricing levels associated with affordability last seen prior to the housing bubble," said Dennis S. Hudson, III, Chairman and Chief Executive Officer. "While we made real progress this quarter with improved core earnings, we continued to experience relatively high levels of credit stress, which will likely continue for a while as the economy finds a bottom."
Nonaccruing loans grew by $22.4 million from year end to $109.4 million or 6.7 percent of loans outstanding, in part due to stressed market conditions and also a ramping up of efforts to pursue troubled debt restructures with commercial and retail mortgage borrowers during the quarter. The Company will pursue loan restructures in selected cases where we expect to achieve better liquidation values than may be expected through other traditional collection activities. During the quarter, the Company also worked with retail mortgage customers, when possible, to achieve lower payment structures in an effort to avoid foreclosure. A total of 93 applications were received seeking restructured mortgages compared to 37 in the fourth quarter 2008. Troubled debt restructurings are part of the Company's loss mitigation activities and can include rate reductions, payment extensions and principal deferment. Company policy requires troubled debt restructures be classified as nonaccrual loans until (under certain circumstances) performance can be verified (typically six months). Troubled debt restructures included in nonperforming loans totaled $32.9 million at March 31, 2009, of which $24.0 million were current in accordance with restructured terms. At March 31, 2009, nonaccruing loans which totaled of $109.4 million have been written down by approximately $49.5 million or 31 percent of their original loan balance (including specific impairment reserves).
The unprecedented housing market decline and its impacts in Florida have for some time affected the Company's performance. Over the past two years, the Company has aggressively reduced its exposures to loan product types most exposed to the housing market decline. For example, residential construction and land development loans which peaked at 20.2 percent of loans in the first quarter of 2007 have been reduced to 3.6 percent of loans (excluding loans classified as nonaccrual) as of March 31, 2009. Other loan product types have been reduced as well, including commercial construction loans. These reduced exposures have resulted from timely and aggressive collection efforts, charge-offs and the sale of distressed loan assets. Loan sales over the past two years have totaled $119 million at an average price of approximately 64 percent of outstanding balances sold. These activities, undertaken early in the housing downturn, resulted in high levels of chargeoffs, but have in turn achieved a substantial reduction in risk to further valuation declines. The cumulative loan charge-off rate since the beginning of 2007 is calculated in the table below:
(Dollars in thousands)
Cumulative charge-offs since 1/1/07 $104,754*
Gross loan balance, 12/31/06 $1,733,111
Cumulative charge-off rate since 1/1/07 6.04%
*Including specific loan loss allowances at March 31, 2009.
Going forward, we anticipate loan sales will likely play a lesser role in connection with our loss mitigation efforts as we shift our focus to other strategies, including troubled debt restructures, where appropriate, for smaller commercial and consumer borrowers.
Operating earnings (before the provision for loan losses and income taxes) excluding one-time severance payments of $242,000 for the first quarter of 2009 totaled approximately $4.1 million, up from the $2.5 million earned in the fourth quarter 2008 which excludes one-time expenses totaling approximately $900,000. This improvement results from increased net interest income as a result of lower costs for deposits and other interest bearing liabilities, and decreased noninterest expenses the result of the implemented overhead reductions announced at year end.
Net interest income (on a tax equivalent basis) was $18.2 million, up $706,000 or 16.1 percent annualized from the fourth quarter 2008. The increase is a result of lower deposit costs and lower rates paid on all interest bearing liabilities, partially offset by a decline in loans, lower loan yields and higher nonperforming loans. The net interest margin increased 12 basis points and totaled 3.44 percent compared to the fourth quarter 2008.
Noninterest income, excluding securities gains and losses totaled $4.8 million, up $269,000 or 6.0 percent linked quarter on improved mortgage banking fees, merchant income, marine finance fees, debit card and deposit based EFT income. The revenues from these sources were partially offset by weaker revenues from wealth management, and with the economy in recession and unemployment increasing, the Company expects fees from this business to remain weak until the economy begins to improve.
Noninterest expenses totaled $19.1 million, down $1.3 million compared to the fourth quarter 2008. Total noninterest expenses, excluding legal and FDIC insurance premiums, declined approximately $859,000 or 4.9 percent, versus comparable noninterest expense amount for the first quarter of 2008. As a result of loan sales last year and the decline in the number of loans in litigation, the Company announced last quarter it believed legal costs would be lower in 2009. Legal costs remained elevated in the first quarter, but were modestly lower compared to the fourth quarter 2008. Salaries and benefits (excluding one time severance payments) for the first quarter 2009 declined $1.5 million or 15.4 percent from a year ago. Further overhead reductions are projected and should provide additional earning's benefit going forward in the range of $1.3 to $1.5 million.
The Company's retail core deposit focus has produced strong growth in core deposit customer relationships when compared to the prior year's and last quarter's results, and has resulted in increased balances which offset planned certificates of deposit runoff in the first quarter 2009. The improved deposit mix and lower rates paid on interest bearing deposits during the first quarter reduced the overall cost of deposits to 2.11 percent, 39 basis points lower than in the fourth quarter 2008.
Lower interest rates and increased emphasis on residential lending significantly increased this quarter's mortgage originations and mortgage banking fees. A total of 383 applications were taken in the first quarter 2009 for total loans of $92 million, an increase of 210 applications and $54 million of loans from the fourth quarter. Closed mortgage loans totaled $38 million for the quarter, $15 million higher than in the fourth quarter 2008. A total of $20.5 million of residential mortgage loans were sold in the first quarter 2009, which increased mortgage banking income by $315,000 or 171.2 percent compared with the fourth quarter 2008, and a $131,000 or 35.6 percent increase over the same period in 2008.
While total deposits at quarter end March 31, 2009 were up slightly from year end 2008, the mix of deposits improved with certificates of deposits declining $28 million, other lower cost interest bearing deposits ("core") increasing $25 million or 12.5 percent annualized, and demand deposits increasing $7 million or 9.5 percent annualized compared to the fourth quarter 2008. The average cost of core deposits during the first quarter was 1.10 percent, down 43 basis points from the fourth quarter. Certificate of deposit rates paid were also lower compared to the fourth quarter and totaled 3.25 percent during the first quarter, a decline of 34 basis points. The average cost of total interest liabilities was down 47 basis points compared to the fourth quarter at 2.05 percent.
Average deposits totaled $1.81 billion for the first quarter 2009, $30 million lower compared to the fourth quarter 2008, due to the shifting of public fund customer deposit balances in late December to sweep repurchase agreements. Total average deposits plus sweep repurchase agreements totaled $1.96 billion during the first quarter-end 2009, up $39 million or 8.2 percent annualized compared to the fourth quarter. Average deposits declined $103 million or 5.4 percent compared to the same period in 2008 as a result of deposit declines in the Company's central Florida region resulting from slower economic growth affecting the second half of 2008. Average noninterest bearing deposits totaled $274.4 for the first quarter 2009, nearly unchanged from the fourth quarter 2008, but a decline of $49.0 million compared to the same period in 2008. 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. This has been partially offset by our successful retail core deposit strategy implemented in early 2008. As reported throughout 2008, the Company has experienced strong growth in core deposit customer relationships. Total new bank households are up 20.7 percent annualized compared to the fourth quarter 2008. New personal checking relationships have increased as a result of the retail deposit growth strategy, which has improved market share, increased average services per household and decreased customer attrition. New personal checking household deposit balances for the first quarter increased $27 million or 7 percent linked quarter and average services per household have increased by 14 percent compared to a year ago.
Seacoast will host a conference call on Friday, April 24, 2009 at 9:30 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 April 24, by dialing (877) 213-9653 (domestic), using the passcode 5861577. Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast's website at www.seacoastbanking.net. The link is located in the subsection "Presentations" under the heading "Investor Services". Beginning the afternoon of April 24, 2009, an archived version of the webcast can be accessed from this same subsection of the website. The archived webcast will be available for one year.
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, 2008 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 at http://www.sec.gov.
FINANCIAL HIGHLIGHTS (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Three Months Ended
(Dollars in thousands, March 31,
except per share data) 2009 2008
------------------------ ---- ----
Summary of Earnings
Net income (loss) $(4,760) $1,763
Net income (loss) available to common
shareholders (5,697) 1,763
Net interest income (1) 18,241 20,562
Performance Ratios
Return on average assets-GAAP basis
(2), (3) (0.83)% 0.30%
Return on average tangible assets
(2), (3), (4) (0.82) 0.34
Return on average shareholders' equity-
GAAP basis (2), (3) (8.83) 3.28
Net interest margin (1), (2) 3.44 3.74
Per Share Data
Net income (loss) diluted-GAAP basis $(0.30) $0.09
Net income (loss) basic-GAAP basis (0.30) 0.09
Cash dividends declared 0.01 0.16
----------------------- ---- ----
(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.
(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.
n/m = not meaningful
FINANCIAL HIGHLIGHTS
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
(Dollars in thousands, March 31, Increase/
except per share data) 2009 2008 (Decrease)
------------------------ ---- ---- ---------------
Credit Analysis
Net charge-offs year-to-date $8,540 $4,401 94.0%
Net charge-offs to
average loans 2.07% 0.93% 122.6
Loan loss provision
year-to-date $11,652 $5,500 111.9
Allowance to loans at
end of period 1.99% 1.22% 63.1
Nonperforming loans $109,381 $64,730 69.0
Other real estate owned 12,684 940 1,249.7
------ ---
Total non-performing assets $122,065 65,670 85.9
-------- ------
Restructured loans (accruing) $3,309 $11 n/m
Nonperforming assets
to loans and other real estate
owned at end of period 7.42% 3.50% 112.0
Nonperforming assets
to total assets 5.29% 2.74% 93.1
Selected Financial Data
Total assets $2,308,933 $2,393,357 (3.5)
Securities - trading
(at fair value) 0 8,994 (100.0)
Securities - available for
sale (at fair value) 349,181 254,395 37.3
Securities - held for investment
(at amortized cost ) 26,655 31,061 (14.2)
Net loans 1,600,077 1,854,968 (13.7)
Deposits 1,814,308 1,945,738 (6.8)
Total shareholders' equity 213,706 214,953 (0.6)
Common shareholders' equity 169,606 214,953 (21.1)
Book value per share common 8.86 11.25 (21.2)
Tangible book value per share 8.29 8.31 (0.2)
Tangible common book
value per share 5.99 8.31 (27.9)
Average shareholders' equity
to average assets 9.45% 9.17% 3.1
Tangible common equity to
tangible assets 5.09 6.80 (25.1)
Average Balances (Year-to-Date)
Total assets $2,313,125 $2,357,528 (1.9)
Less: intangible assets 55,033 56,291 (2.2)
------ ------
Total average tangible assets $2,258,093 $2,301,237 (1.9)
---------- ----------
Total equity $218,609 $216,283 1.1
Less: intangible assets 55,033 56,291 (2.2)
------ ------
Total average tangible equity $163,577 $159,992 2.2
-------- --------
n/m = not meaningful
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Three Months Ended
March 31,
----------
(Dollars in thousands,
except per share data) 2009 2008
---------------------- ---- ----
Interest on securities:
Taxable $3,920 $3,586
Nontaxable 84 90
Interest and fees on loans 23,160 31,182
Interest on federal
funds sold and other investments 148 297
--- ---
Total Interest Income 27,312 35,155
Interest on deposits 2,229 5,805
Interest on time certificates 5,758 6,773
Interest on borrowed money 1,151 2,092
----- -----
Total Interest Expense 9,138 14,670
----- ------
Net Interest Income 18,174 20,485
Provision for loan losses 11,652 5,500
------ -----
Net Interest Income
After Provision for Loan Losses 6,522 14,985
Noninterest income:
Service charges on deposit accounts 1,585 1,850
Trust income 558 582
Mortgage banking fees 499 368
Brokerage commissions and fees 381 683
Marine finance fees 345 685
Debit card income 608 611
Other deposit based EFT fees 94 108
Merchant income 536 735
Other 150 540
--- ---
4,756 6,162
Securities gains (losses), net 0 0
- -
Total Noninterest Income 4,756 6,162
Noninterest expenses:
Salaries and wages 6,888 7,935
Employee benefits 1,782 2,025
Outsourced data processing costs 1,891 2,014
Telephone / data lines 484 438
Occupancy 2,154 1,843
Furniture and equipment 651 688
Marketing 488 598
Legal and professional fees 1,392 926
FDIC assessments 877 59
Amortization of intangibles 315 315
Other 2,187 1,843
----- -----
Total Noninterest Expenses 19,109 18,684
Income (Loss) Before Income Taxes (7,831) 2,463
Provision (benefit) for income taxes (3,071) 700
------ ---
Net Income (Loss) (4,760) 1,763
Preferred stock dividends and
accretion on preferred stock discount 937 0
--- -
Net Income (Loss) Available to
Common Shareholders $(5,697) $1,763
----------------------
Per share of common stock:
Net income (loss) diluted $(0.30) $0.09
Net income (loss) basic (0.30) 0.09
Cash dividends declared 0.01 0.16
Average diluted shares outstanding 19,069,437 19,046,420
Average basic shares outstanding 19,069,437 18,928,375
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
(Dollars in thousands, except March 31, December 31, March 31, share amounts) 2009 2008 2008
------------------ ---- ---- ----
Assets
Cash and due from banks $39,260 $46,002 $64,287
Federal funds sold 4,919 4,605 35,217
Interest bearing deposits with
other banks 105,312 100,585 0
------- ------- -
Total Cash and Cash
Equivalents 149,491 151,192 99,504
Securities:
Trading (at fair value) 0 0 8,994
Available for sale
(at fair value) 349,181 318,030 254,395
Held for investment
(at amortized cost) 26,655 27,871 31,061
------ ------ ------
Total
Securities 375,836 345,901 294,450
Loans available for sale 8,196 2,165 3,889
Loans, net of unearned income 1,632,577 1,676,728 1,877,968
Less: allowance
for loan losses (32,500) (29,388) (23,000)
------- ------- -------
Net Loans 1,600,077 1,647,340 1,854,968
Bank premises and equipment, net 43,685 44,122 42,403
Other real estate owned 12,684 5,035 940
Goodwill and other intangible
assets 54,879 55,193 56,137
Other assets 64,085 63,488 41,066
------ ------ ------
$2,308,933 $2,314,436 $2,393,357
---------- ---------- ----------
Liabilities and Shareholders' Equity
Liabilities
Deposits
Demand deposits
(noninterest bearing) $281,809 $275,262 $329,626
Savings deposits 827,251 802,201 986,794
Other time deposits 335,251 326,473 341,293
Brokered time certificates 72,872 100,463 0
Time certificates
of $100,000 or more 297,125 306,042 288,025
------- ------- -------
Total Deposits 1,814,308 1,810,441 1,945,738
Federal funds purchased and
securities sold under agreements
to repurchase, maturing within
30 days 152,947 157,496 94,895
Borrowed funds 65,239 65,302 65,307
Subordinated debt 53,610 53,610 53,610
Other liabilities 9,123 11,586 18,854
----- ------ ------
2,095,227 2,098,435 2,178,404
Shareholders' Equity
Preferred stock 44,100 43,787 0
Common stock 1,915 1,928 1,919
Additional paid in capital 100,005 99,788 91,288
Retained earnings 64,625 70,278 121,127
Treasury stock (1,824) (1,839) (1,134)
------ ------ ------
208,821 213,942 213,200
Accumulated other
comprehensive gain, net 4,885 2,059 1,753
----- ----- -----
Total Shareholders'
Equity 213,706 216,001 214,953
------- ------- -------
$2,308,933 $2,314,436 $2,393,357
--------- ---------- ----------
Common Shares Outstanding 19,149,828 19,171,779 19,114,879
--------------------------------------
Note: The balance sheet at December 31, 2008 has been derived from the audited financial statements at that date.
CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited)
--------------------------------- -----------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
QUARTERS
--------
2009 2008
---- ----
(Dollars in
thousands, except
per share data) First Fourth Third Second
------------------ --------- ------ ----- ------
Net loss $(4,760) $(22,596) $(3,448) $(21,316)
Operating Ratios
Return on
average
assets-GAAP
basis (2),(3) (0.83)% (3.99)% (0.60)% (3.65)%
Return on
average
tangible
assets
(2),(3),(4) (0.82) (4.05) (0.58) (3.70)
Return on average
shareholders'
equity-GAAP basis
(2),(3) (8.83) (45.92) (7.13) (39.79)
Net interest
margin (1),(2) 3.44 3.32 3.57 3.69
Average equity
to average
assets 9.45 8.68 8.43 9.17
Credit Analysis
Net charge-offs $8,540 $33,916 $9,290 $33,541
Net charge-offs
to average
loans 2.07% 7.76% 2.06% 7.28%
Loan loss
provision $11,652 $30,656 $10,241 $42,237
Allowance to loans
at end of period 1.99% 1.75% 1.87% 1.75%
Restructured
Loans
(accruing) $3,309 $12,616 $10 $11
Nonperforming
loans $109,381 $86,970 $75,793 $76,224
Other real
estate owned 12,684 5,035 4,551 4,547
------ ----- ----- -----
Nonperforming
assets $122,065 $92,005 $80,344 $80,771
-------- ------- ------- -------
Nonperforming
assets to loans
and other real
estate owned at
end of period 7.42% 5.47% 4.60% 4.45%
Nonperforming
assets to total
assets 5.29 3.97 3.61 3.52
Nonaccrual
loans and
accruing
loans 90 days
or more
past due to
loans
outstanding
at end of
period 6.97 5.30 4.42 4.23
Per Share Common
Stock
Net income
(loss) diluted-
GAAP basis $(0.30) $(1.19) $(0.18) $(1.12)
Net income
(loss) basic-
GAAP basis (0.30) (1.19) (0.18) (1.12)
Cash dividends
declared 0.01 0.01 0.01 0.16
Book value per
share 8.86 8.98 9.59 9.90
Average Balances
Total assets $2,313,125 $2,255,036 $2,282,821 $2,349,749
Less:
Intangible
assets 55,033 55,346 55,662 55,976
------ ------ ------ ------
Total average
tangible
assets $2,258,093 $2,199,690 $2,227,159 $2,293,773
---------- ---------- ---------- ----------
Total equity $218,609 $195,770 $192,469 $215,448
Less: Intangible
assets 55,033 55,346 55,662 55,976
------ ------ ------ ------
Total average
tangible equity $163,576 $140,424 $136,807 $159,472
-------- -------- -------- --------
Last
(Dollars in thousands, except 12
per share data) Months
----------------------------- -------
Net income (loss) $(52,120)
Operating Ratios
Return on average assets-GAAP
basis (2),(3) (2.27)%
Return on average tangible
assets (2),(3),(4) (2.29)
Return on average shareholders' equity-
GAAP basis (2),(3) (25.37)
Net interest margin (1),(2) 3.50
Average equity to average assets 8.93
Credit Analysis
Net charge-offs $85,287
Net charge-offs to average loans 4.83%
Loan loss provision $94,786
Allowance to loans at end of period
Restructured Loans (accruing)
Nonperforming loans
Other real estate owned
Nonperforming assets
Nonperforming assets to
loans and other real estate owned
at end of period
Nonperforming assets to total assets
Nonaccrual loans and accruing loans
90 days or more past due to loans
outstanding at end of period
Per Share Common Stock
Net income (loss) diluted-GAAP basis $(2.79)
Net income (loss) basic-GAAP basis (2.79)
Cash dividends declared 0.19
Book value per share
Average Balances
Total assets
Less: Intangible assets
Total average tangible assets
Total equity
Less: Intangible assets
Total average tangible equity
(1) Calculated on a fully taxable equivalent basis using amortized cost.
(2) These ratios are stated on an annualized basis and are not
necessarily indicative of future periods.
(3) The calculations of ROA and ROE do not include the mark-to-market
unrealized gains (losses), because the unrealized gains (losses)
are not included in net income.
(4) The Company believes that return on average assets and equity
excluding the impacts of noncash amortization expense on intangible
assets is a better measurement of the Company's trend in earnings
growth.
CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited)
-------------------------------------- -----------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
(Dollars in thousands)
----------------------
March 31, December 31, March 31,
SECURITIES 2009 2008 2008
----------- ---- ---- ----
U.S. Treasury and U.S.
Government Agencies $0 $0 $8,994
-- -- ------
Securities Trading 0 0 8,994
- - -----
U.S. Treasury and U.S.
Government Agencies 21,143 22,380 22,699
Mortgage-backed 322,787 290,423 226,498
Obligations of states and
political subdivisions 2,046 2,070 2,072
Other securities 3,205 3,157 3,126
----- ----- -----
Securities Available for
Sale 349,181 318,030 254,395
------- ------- -------
Mortgage-backed 21,033 22,248 24,918
Obligations of states and
political subdivisions 5,622 5,623 6,143
----- ----- -----
Securities Held for
Investment 26,655 27,871 31,061
------ ------ ------
Total Securities $375,836 $345,901 $294,450
======== ======== ========
March 31, December 31, March 31,
LOANS 2009 2008 2008
----- ---- ---- ----
Construction and land
development $368,832 $395,243 $593,992
Real estate mortgage 1,116,616 1,125,465 1,104,675
Instalment loans to
individuals 71,440 72,908 84,926
Commercial and financial 75,448 82,765 93,933
Other loans 241 347 442
--- --- ---
Total Loans $1,632,577 $1,676,728 $1,877,968
---------- ---------- ----------
AVERAGE BALANCES, YIELDS AND RATES (1) (Unaudited)
---------------------------------------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2009
----
First Quarter
-------------
Average Yield/
(Dollars in thousands) Balance Rate
---------------------- ------- ----
Assets
Earning assets:
Securities:
Taxable $351,286 4.46%
Nontaxable 7,646 6.59
----- ----
Total Securities 358,932 4.51
Federal funds sold and other
investments 121,633 0.49
Loans, net 1,670,353 5.63
--------- ----
Total Earning Assets 2,150,918 5.16
Allowance for loan losses (31,392)
Cash and due from banks 33,665
Premises and equipment 44,128
Other assets 115,806
-------
$2,313,125
----------
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
NOW $53,373 0.57%
Savings deposits 99,712 0.56
Money market accounts 664,946 1.23
Time deposits 718,008 3.25
Federal funds purchased and other
short term borrowings 154,185 0.49
Other borrowings 118,894 3.28
------- ----
Total Interest-Bearing Liabilities 1,809,118 2.05
Demand deposits (noninterest-bearing) 274,363
Other liabilities 11,035
------
Total Liabilities 2,094,516
Shareholders' equity 218,609
-------
$2,313,125
----------
Interest expense as a % of earning assets 1.72%
Net interest income as a % of earning assets 3.44
2008
----
Fourth Quarter First Quarter
--------------- ---------------
Average Yield/ Average Yield/
(Dollars in thousands) Balance Rate Balance Rate
---------------------- ------- ---- ----
Assets
Earning assets:
Securities:
Taxable $299,410 4.89% $280,487 5.11%
Nontaxable 7,886 5.93 8,166 6.51
----- ---- ----- ----
Total Securities 307,296 4.92 288,653 5.15
Federal funds sold and other
investments 55,101 1.09 26,311 4.54
Loans, net 1,737,896 5.68 1,897,625 6.62
--------- ---- --------- ----
Total Earning Assets 2,100,293 5.45 2,212,589 6.40
Allowance for loan losses (31,489) (22,563)
Cash and due from banks 36,743 46,614
Premises and equipment 44,121 42,029
Other assets 105,368 78,859
------- ------
$2,255,036 $2,357,528
---------- ----------
Liabilities and
Shareholders' Equity
Interest-bearing liabilities:
NOW $56,161 1.23% $65,752 2.41%
Savings deposits 99,155 0.64 104,591 0.70
Money market accounts 670,094 1.69 818,920 2.57
Time deposits 737,906 3.59 600,704 4.53
Federal funds purchased
and other short term
borrowings 88,253 0.83 103,541 2.45
Other borrowings 118,697 4.01 118,839 4.94
------- ---- ------- ----
Total Interest-Bearing
Liabilities 1,770,266 2.52 1,812,347 3.26
Demand deposits (noninterest-
bearing) 276,759 323,363
Other liabilities 12,241 5,535
------ -----
Total Liabilities 2,059,266 2,141,245
Shareholders' equity 195,770 216,283
------- -------
$2,255,036 $2,357,528
---------- ----------
Interest expense as a % of
earning assets 2.12% 2.67%
Net interest income as a % of
earning assets 3.32 3.74
---------------------------------------------
(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) (Unaudited)
------------------------------------------------------
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2008
----
Construction and land
development 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
--------------------- ------- ------- ------- -------
Residential:
>$4
Condominiums million $30.6 $26.3 $19.6 $8.6
<$4
million 26.6 21.1 13.0 8.8
>$4
Town homes million 19.4 17.1 17.1 -
<$4
million 4.4 2.9 4.6 6.1
Single Family >$4
Residences million 20.8 21.2 13.5 11.9
<$4
million 35.9 28.3 23.7 14.9
Single Family >$4
Land & Lots million 85.1 64.3 40.3 22.1
<$4
million 27.0 30.8 29.9 30.7
>$4
Multifamily million 7.8 7.8 7.8 7.8
<$4
million 24.8 26.2 22.9 19.0
---- ---- ---- ----
>$4
TOTAL million 163.7 136.7 98.3 50.4
<$4
TOTAL million 118.7 109.3 94.1 79.5
----- ----- ---- ----
GRAND TOTAL $282.4 $246.0 $192.4 $129.9
====== ====== ====== ======
2009 Nonperforming
---- -------------
Construction and land
development 1st Qtr 1st Qtr Number
--------------------- ------- ------- ------
Residential:
>$4
Condominiums million $8.4 $- -
<$4
million 7.9 2.4 1
>$4
Town homes million - - -
<$4
million 4.2 3.9 2
Single Family >$4
Residences million 6.6 - -
<$4
million 13.9 5.7 9
Single Family >$4
Land & Lots million 21.8 21.8 3
<$4
million 29.6 12.4 17
>$4
Multifamily million 7.8 7.8 1
<$4
million 17.0 4.1 5
---- --- -
>$4
TOTAL million 44.6 29.6 4
<$4
TOTAL million 72.6 28.5 34
---- ---- --
GRAND TOTAL $117.2 $58.1 38
====== ===== ==
QUARTERLY TRENDS - LOANS AT END OF PERIOD (Dollars in Millions)
(Unaudited)
---------------------------------------------------------------
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
======== ======== ======== ======== ========
2008 2009
---- ----
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr
------- ------- ------- ------- -------
Construction and land development
Residential
Condominiums $57.2 $47.4 $32.6 $17.4 $16.3
Townhomes 23.8 20.0 21.7 6.1 4.2
Single family
residences 56.7 49.5 37.2 26.8 20.5
Single family land and
lots 112.1 95.1 70.2 52.8 51.4
Multifamily 32.6 34.0 30.7 26.8 24.8
---- ---- ---- ---- ----
282.4 246.0 192.4 129.9 117.2
Commercial
Office buildings 29.1 31.1 27.8 17.3 17.4
Retail trade 60.4 63.6 68.5 68.7 70.0
Land 92.5 75.4 73.9 73.3 60.9
Industrial 16.9 20.8 20.7 13.3 9.0
Healthcare 1.0 1.0 - - 5.7
Churches and educational
facilities - 0.1 - - -
Lodging - - - - 0.6
Convenience stores 1.8 - - - -
Marina 26.8 28.9 30.5 30.7 31.6
Other 11.3 6.3 5.4 6.0 6.2
---- --- --- --- ---
239.8 227.2 226.8 209.3 201.4
Individuals
Lot loans 39.4 40.0 38.4 35.7 34.0
Construction 32.4 27.1 27.4 20.3 16.2
---- ---- ---- ---- ----
71.8 67.1 65.8 56.0 50.2
---- ---- ---- ---- ----
Total construction and
land development 594.0 540.3 485.0 395.2 368.8
Real estate mortgages
Residential real estate
Adjustable 317.6 318.8 316.5 329.0 333.1
Fixed rate 89.1 90.2 93.4 95.5 90.8
Home equity mortgages 91.7 93.1 84.3 84.8 85.5
Home equity lines 56.3 59.4 59.7 58.5 60.3
---- ---- ---- ---- ----
554.7 561.5 553.9 567.8 569.7
Commercial real estate
Office buildings 144.3 142.3 143.6 146.4 140.6
Retail trade 83.8 93.5 101.6 111.9 109.1
Land - - 0.6 - -
Industrial 104.3 93.3 92.2 94.7 95.3
Healthcare 39.9 33.6 31.6 29.2 28.3
Churches and educational
facilities 40.2 36.5 35.6 35.2 34.8
Recreation 2.8 1.8 1.8 1.7 1.7
Multifamily 20.0 19.1 19.2 27.2 27.2
Mobile home parks 3.2 3.1 3.1 3.0 3.0
Lodging 27.9 28.0 26.7 26.6 26.3
Restaurant 8.0 9.0 8.6 6.2 6.1
Agricultural 12.4 9.0 8.7 8.5 8.2
Convenience stores 23.1 24.9 23.6 23.5 23.3
Other 40.1 41.6 42.5 43.6 43.0
---- ---- ---- ---- ----
550.0 535.7 539.4 557.7 546.9
----- ----- ----- ----- -----
Total real estate
mortgages 1,104.7 1,097.2 1,093.3 1,125.5 1,116.6
Commercial & financial 93.9 94.8 88.5 82.8 75.5
Installment loans to individuals
Automobile and trucks 24.1 23.0 21.9 20.8 19.4
Marine loans 33.3 25.2 26.0 26.0 26.3
Other 27.5 27.9 27.4 26.1 25.7
---- ---- ---- ---- ----
84.9 76.1 75.3 72.9 71.4
Other 0.5 0.4 0.5 0.3 0.3
--- --- --- --- ---
$1,878.0 $1,808.8 $1,742.6 $1,676.7 $1,632.6
======== ======== ======== ======== ========
QUARTERLY TRENDS - INCREASE (DECREASE) IN LOANS BY QUARTER (Dollars in
Millions) (Unaudited)
-----------------------------------------------------------------------
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
===== ===== ===== ====
2008 2009
---- ----
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr
------- ------- ------- ------- -------
Construction and land development
Residential
Condominiums $(3.0) $(9.8) $(14.8) $(15.2) $(1.1)
Townhomes (1.2) (3.8) 1.7 (15.6) (1.9)
Single family
residences (2.3) (7.2) (12.3) (10.4) (6.3)
Single family land and
lots (4.3) (17.0) (24.9) (17.4) (1.4)
Multifamily (1.9) 1.4 (3.3) (3.9) (2.0)
---- --- ---- ---- ----
(12.7) (36.4) (53.6) (62.5) (12.7)
Commercial
Office buildings (1.8) 2.0 (3.3) (10.5) 0.1
Retail trade (8.6) 3.2 4.9 0.2 1.3
Land 9.9 (17.1) (1.5) (0.6) (12.4)
Industrial 3.9 3.9 (0.1) (7.4) (4.3)
Healthcare - - (1.0) - 5.7
Churches and educational
facilities - 0.1 (0.1) - -
Lodging (11.2) - - - 0.6
Convenience stores 0.1 (1.8) - - -
Marina 3.7 2.1 1.6 0.2 0.9
Other 1.4 (5.0) (0.9) 0.6 0.2
--- ---- ---- --- ---
(2.6) (12.6) (0.4) (17.5) (7.9)
Individuals
Lot loans - 0.6 (1.6) (2.7) (1.7)
Construction (0.3) (5.3) 0.3 (7.1) (4.1)
---- ---- --- ---- ----
(0.3) (4.7) (1.3) (9.8) (5.8)
---- ---- ---- ---- ----
Total construction and
land development (15.6) (53.7) (55.3) (89.8) (26.4)
Real estate mortgages
Residential real estate
Adjustable (1.9) 1.2 (2.3) 12.5 4.1
Fixed rate 1.6 1.1 3.2 2.1 (4.7)
Home equity mortgages 0.3 1.4 (8.8) 0.5 0.7
Home equity lines (2.8) 3.1 0.3 (1.2) 1.8
---- --- --- ---- ---
(2.8) 6.8 (7.6) 13.9 1.9
Commercial real estate
Office buildings 12.6 (2.0) 1.3 2.8 (5.8)
Retail trade 7.6 9.7 8.1 10.3 (2.8)
Land (5.3) - 0.6 (0.6) -
Industrial (1.2) (11.0) (1.1) 2.5 0.6
Healthcare 7.5 (6.3) (2.0) (2.4) (0.9)
Churches and educational
facilities - (3.7) (0.9) (0.4) (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) (0.3)
Restaurant (0.2) 1.0 (0.4) (2.4) (0.1)
Agricultural (0.5) (3.4) (0.3) (0.2) (0.3)
Convenience stores (0.1) 1.8 (1.3) (0.1) (0.2)
Other 1.8 1.5 0.9 1.1 (0.6)
--- --- --- --- ----
32.7 (14.3) 3.7 18.3 (10.8)
---- ----- --- ---- -----
Total real estate
mortgages 29.9 (7.5) (3.9) 32.2 (8.9)
Commercial & financial (32.8) 0.9 (6.3) (5.7) (7.3)
Installment loans to individuals
Automobile and trucks (0.9) (1.1) (1.1) (1.1) (1.4)
Marine loans 0.1 (8.1) 0.8 - 0.3
Other (0.7) 0.4 (0.5) (1.3) (0.4)
---- --- ---- ---- ----
(1.5) (8.8) (0.8) (2.4) (1.5)
Other (0.4) (0.1) 0.1 (0.2) -
---- ---- --- ---- -
$(20.4) $(69.2) $(66.2) $(65.9) $(44.1)
====== ====== ====== ====== ======
