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8-K - CURRENT REPORT FORM 8-K - SEACOAST BANKING CORP OF FLORIDAv311591_8k.htm
EX-99.2 - EXHIBIT 99.2 - SEACOAST BANKING CORP OF FLORIDAv311591_ex99-2.htm
EX-99.1 - EXHIBIT 99.1 - SEACOAST BANKING CORP OF FLORIDAv311591_ex99-1.htm

 

 

EXHIBIT 99.3

To Form 8-K dated April 26, 2012

 

Seacoast Banking Corporation of Florida

 

First Quarter 2012

 

Cautionary Notice Regarding Forward-Looking Statements

 

This information 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 at http://www.sec.gov.

 

 
 

 

Highlights

 

First quarter net income of $938,000 improved when compared to the prior year
Solid capital position with estimated tangible common equity (TCE) ratio of 7.5% when DTA valuation allowance of $44.5 million is recaptured.
Other real estate owned declined by 25.9% from the prior quarter
Nonperforming assets fell to 2.6% of total assets compared to 4.3% last year
Organic growth in new households achieved higher levels resulting in 3,065 new household relationships during the first quarter
Liquidity remains strong with low cost core funding from deposits and sweep repos
Noninterest bearing demand deposit organic growth linked quarter was $66.2 million or 20.2%
Commercial loans closed totaled $13.5 million and the active pipeline grew to $98.0 million
Recurring expenses remain well managed
Operating trends continue to be encouraging and we remain acutely focused on executing client satisfaction and retention initiatives to drive steadily improving results

 

Capital Ratios

 

   1Q-2012
Estimate
   4Q-2011
Actual
   3Q-2011
Actual
   2Q-2011
Actual
 
                 
Tier 1 Capital Ratio   17.36%   17.51%   17.42%   17.65%
Total Risk Based Capital Ratio   18.62%   18.77%   18.68%   18.92%
YTD Average Equity to YTD Average Assets   7.85%   8.01%   8.06%   8.06%
Tangible Equity to Tangible Assets   7.79%   7.86%   8.22%   8.10%
Tangible Common Equity to Tangible Assets   5.58%   5.63%   5.91%   5.84%
Tangible Common Equity to Risk Weighted Assets   9.90%   9.81%   9.97%   10.09%

 

Credit Analysis

 

   ($ in thousands) 
   1Q-2012   4Q-2011   3Q-2011   2Q-2011   1Q-2011 
                     
Net charge-offs  $3,415   $3,268   $2,830   $4,024   $4,031 
Net charge-offs to average loans   1.13%   1.07%   0.94%   1.32%   1.32%
                          
Loan loss provision  $2,305   $432       $902   $640 
Allowance to loans at end of period   2.01%   2.12%   2.35%   2.63%   2.80%
Coverage ratio – NPLs   58.62%   89.62%   87.05%   67.65%   51.87%

 

 
 

 

Noninterest Expenses

Controllable Expenses Well Managed with Increased

Investments in Growth

 

   ($ in thousands)         
  

 

1Q–2012

  

 

4Q–2011

  

 

1Q–2011

  

1Q 2012

vs 4Q 2011

  

1Q 2012
vs 1Q 2011

 
                     
Noninterest expenses  $21,710   $19,960   $19,667    8.8%   10.4%
                          
Loss on mortgage buy-backs       283    -           
Severence       412               
TARP Legal and Professional Expenses   235                   
Strategic plan & credit related professional fees           247           
OREO and REPO expenses (1)   843    608    1,397           
Net loss on OREO and repossessed assets   1,959    1,254    449           
Nonrecurring expenses  $3,037   $2,557   $2,093    18.8%   45.1%
Expenses Associated with Revenue Growth (2)   1,332    1,113    945    19.7%   41.0%
Core operating expenses  $17,341   $16,290   $16,629    6.5%   4.3%
                     

(1)Does not include personnel expense related to credit administration or default management costs

 

(2)Expenses associated with revenue growth

  

   1Q–2012   4Q–2011   1Q–2011 
Salaries and Benefits for new CRMs  $358   $270   $236 
Incentives and Commissions   974    843    709 
   $1,332   $1,113   $945 

 

 

 
 

 

Core Ending Deposit Growth

Favorable Mix Shift

 

   ($ in thousands) 
   1Q-2012   Mix   4Q-2011   Mix   1Q-2011   Mix 
                         
Demand deposits (noninterest bearing)  $394,532    22.7%  $328,356    19.1%  $324,879    19.3%
Savings deposits   915,189    52.7%   922,361    53.7%   828,130    49.1%
Total Demand and Savings  $1,309,721    75.4%  $1,250,717    72.8%  $1,153,009    68.4%
                               
Other time certificates   231,060    13.3%   244,886    14.2%   278,437    16.5%
Brokered time certificates   7,113    0.4%   4,558    0.3%   7,371    0.4%
Time certificates of $100,000 or more   189,565    10.9%   218,580    12.7%   247,393    14.7%
Total Time Deposits  $427,738    24.6%  $468,024    27.2%  $533,201    31.6%
                               
Total Deposits  $1,737,459        $1,718,741        $1,686,210      

 

Core Ending Deposit Growth

 

   ($ in thousands) 
  

 

1Q-2012

  

 

4Q-2011

  

 

1Q-2011

  

Year

Over Year

 
                 
Demand deposits (noninterest bearing)  $394,532   $328,356   $324,879    21.4%
Savings deposits   915,189    922,361    828,130    10.5%
Total Demand and Savings  $1,309,721   $1,250,717   $1,153,009    13.6%
                     
Other time certificates   231,060    244,886    278,437    -17.0%
Brokered time certificates   7,113    4,558    7,371    -3.5%
Time certificates of $100,000 or more   189,565    218,580    247,393    -23.4%
Total Time Deposits  $427,738   $468,024   $533,201    -19.8%
                     
Total Deposits  $1,737,459   $1,718,741   $1,686,210    3.0%

 

 
 

  

Net Interest Margin

 

   1Q-11   2Q-11   3Q-11   4Q-11   1Q-12 
Net Interest Margin   3.48%   3.36%   3.44%   3.42%   3.33%

  

·Focus on deposit pricing and favorable deposit trends benefited the margin

 

Noninterest Income (excluding securities gains)

$ in thousands  Q-1-2012   Q-4-2011   Q-3-2011   Q-2-2011   Q-1-2011 
Total Noninterest Income (excluding securities gains)  $4,937   $4,883   $4,706   $4,547   $4,209 
                          
Highlights include:                         
Service Charges  $1,461   $1,599   $1,675   $1,546   $1,442 
Trust Income   573    530    541    517    523 
Mortgage Banking   623    680    556    509    395 
Brokerage   234    258    321    223    320 
Marine   330    333    229    349    298 
Interchange Income   1,071    953    969    995    891 

 

 
 

  

Service Area