EXHIBIT 99.1

To Form 8-K dated January 24, 2013

 

NEWS RELEASE

 

SEACOAST BANKING CORPORATION OF FLORIDA

 

Dennis S. Hudson, III

Chairman and Chief Executive Officer

Seacoast Banking Corporation of Florida

(772) 288-6085

 

William R. Hahl

Executive Vice President/

Chief Financial Officer

(772) 221-2825

 

SEACOAST REPORTS IMPROVEMENTS FOR

THE FOURTH QUARTER

 

Profitability improvement plan on target

·

Core costs down $625,000 in the fourth quarter, comparable with core cost reductions of $727,000 in the third quarter (versus second quarter 2012)

·

Targeting $7.4 million in reduced expenses in 2013

 

Continued acceleration in new households, deposit and fee income growth

·

Total households increase 9.4 percent year over year

·

Strong growth in noninterest bearing deposits of 28.8 percent over prior year

·

Fee based revenues up 14.9 percent year over year for the fourth quarter

 

Credit quality improvements continue in the quarter

·

Nonperforming loans decline by 7.9 percent compared to last quarter

·

Other real estate owned down 43.2 percent compared to 2011

 

 

STUART, FL., January 24, 2013 – Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCF), today reported 2012 fourth quarter net income of $240,000, compared to $2.5 million for the fourth quarter of 2011.  Net loss of $710,000 for the full year compared to net income of $6.7 million for the year 2011.  Net loss available to common shareholders for the fourth quarter and the year 2012 totaled, respectively, $697,000 or $0.01 diluted earnings per share (DEPS), and $4.5 million or $0.05 DEPS.  These figures compare to net income of $0.02 DEPS and $0.03 DEPS a year ago for the same periods, respectively.

 

Net pre-provision income, excluding securities gains, the change in fair value of loans available for sale, branch consolidation and severance costs and loss on sale of other real estate owned (“OREO”) and other assets was $2.9 million for the quarter. “Our growth initiatives continued to perform well during the quarter and for the entire year,” said Dennis S. Hudson, III, Chairman and Chief Executive Officer. “Loan growth began to accelerate this quarter as a result of our expanded business loan production teams, which helped us maintain a stable net interest margin.”

 

During 2012, we added 11 commercial loan officers, including 6 in the second half of 2012, to improve new loan production. In the fourth quarter 2012, new commercial loan production totaled $49.6 million, compared to $25.1 million last quarter. We expect to see continued growth in overall loan production throughout 2013 as additional resources are added and we further build upon our business household growth initiatives. This will include making further investments in revenue producing commercial and mortgage loan officers in 2013.

 

 

Net income for the year 2012 was impacted by our decision at mid-year to accelerate the reduction of problem loans and foreclosed properties. We took this action in part to take advantage of improving market conditions. These actions continued in the current quarter with $4.6 million in charge offs which were offset with $2.4 million in recoveries related to loans previously charged off. Shortly after year-end a problem commercial loan, which was moved last quarter to available for sale and valued based on market bids at $10.3 million was sold for a net loss (reflected in the quarter) of $1.2 million. Foreclosed properties were reduced by 43.2 percent during the year and nonperforming loans declined by 7.9 percent compared to the last quarter.

 

In addition, we took final charges totaling $490,000 during the current quarter related to branch consolidation and severance costs associated with our Profitability Improvement Plan for 2013 which was announced last quarter. This plan is on target and is expected to reduce our core overhead structure by approximately $4.9 million annually in 2013. We expect our losses on OREO and asset disposition expense will be reduced by $2.8 million in 2013 and we also expect the provision for loan losses to be significantly lower in 2013.

 

Highlights for the quarter:

 

·

In the fourth quarter loans increased $23.6 million or 7.9 percent annualized reflecting improving commercial and consumer loan production, as well as, continued strong residential mortgage production;

·

Mortgage banking fees for the quarter increased by $350,000 or 51.5% compared to 2011 and totaled $3.7 million for the year compared to $2.1 million for last year, up 73.4%;

·

Interchange fees and service charges on deposit accounts grew by 21.4% and 4.9%, respectively, compared with last year’s fourth quarter, reflecting strong growth in our core customer franchise;

 

 

·

Ending noninterest bearing demand deposits increased by $94.5 million or 28.8 percent for the year and 13.4 percent annualized linked quarter on continued strong core retail and commercial account growth;

·

Nonperforming loans declined by 7.9 percent compared to last quarter and nonperforming assets to total assets declined to 2.43 percent from 2.56 percent for the third quarter 2012;

·

Savings, NOW and money market deposits increased $91.2 million linked quarter or 9.8 percent, in part reflecting a seasonal increase in local municipalities’ deposits, which are up $95.9 million compared to a year ago; and

·

The improved deposit mix resulted in a decline of 6 and 36 basis points in the cost of deposits compared to the third quarter and fourth quarter a year ago, respectively.

 

Over the past several years we have implemented focused tactical initiatives designed to produce strong organic growth of our core customer account franchise. Since the fourth quarter 2010, we have increased total core customer funding by $377 million or 31.4 percent and improved our funding mix by increasing noninterest bearing deposits to 24.0 percent of total deposits from 17.7 percent at year end 2010. Total core customer funding increased by 13.8 percent over the past year.

 

 

(Dollars in thousands)		2012 Fourth Quarter				2011 Fourth Quarter				2010 Fourth Quarter				2012 vs 2011 Change				2012 vs 2010 Change
Customer Relationship Funding
Demand deposits (noninterest bearing)		$	422,833			$	328,356			$	289,621				28.8	%			46.0	%
NOW			509,371				469,631				401,005				8.5				27.0
Savings deposits			164,956				133,578				113,082				23.5				45.9
Money market accounts			343,915				319,152				298,538				7.8				15.2
Time certificates of deposit			317,886				468,024				534,982				(32.1	)			(40.6	)
Total Deposits			1,758,961				1,718,741				1,637,228				2.3				7.4
Sweep repurchase agreements			136,803				136,252				98,213				0.4				39.3
Total core customer funding (1)			1,577,878				1,386,969				1,200,459				13.8				31.4
Demand deposit mix (noninterest bearing)			24.0	%			19.1	%			17.7	%
Total checking and savings deposit mix (2)			81.9	%			72.8	%			67.3	%

 

(1)

Total deposits and sweep repurchase agreements, excluding certificates of deposits.

(2)

Total deposits less time certificates.

 

Seacoast has maintained strong regulatory capital ratios over the past two years.  The estimated total risk-based capital ratio at year-end increased to 18.3 percent, up from 17.8 percent at year end 2010.  The estimated tangible common equity ratio was 5.3 percent at year-end 2012. Recovering the deferred tax asset valuation allowance would increase this ratio to 7.2 percent. 

 

Average earning assets for the fourth quarter are up $35.8 million from the prior year with average loans up $31.7 million on retained loan production of $287 million over the last twelve months. New loan growth has been concentrated in smaller average balance commercial loans and residential home purchase transactions consistent with our concentration management objectives. Offsetting loan growth has been nonperforming loan resolutions, refinancing and early payoffs as a result of the low rate environment. Total loans increased to $1.226 billion at year-end 2012, up $18.0 million compared to the prior year and including available for sale loans increased by $47.2 million compared to a year ago.

 

 

Total revenue (excluding securities gains and change in fair value of loans available for sale) for year was $86.3 million, up $1.1 million as a result of increased loan growth, lower funding costs and improved fees as a result of retail and small business deposit account growth, and improvements in loan production.  Noninterest income (excluding securities gains) was up $726,000 or 14.9 percent in the fourth quarter compared with a year ago and was up for the full year by $3.1 million or 16.9 percent compared with 2011.

 

(Dollars in thousands)		Q-4 2012				Q-3 2012				Q-2 2012				Q-1 2012				Q-4 2011
Noninterest Income:
Service charges on deposit accounts		$	1,677			$	1,620			$	1,487			$	1,461			$	1,599
Trust income			592				550				564				573				530
Mortgage banking fees			1,030				1,155				902				623				680
Brokerage commissions and fees			292				247				298				234				258
Marine finance fees			258				279				244				330				333
Interchange income			1,157				1,119				1,154				1,071				953
Other deposit based EFT fees			83				70				84				99				78
Other			520				639				486				546				452
Total			5,609				5,679				5,219				4,937				4,883
Change in fair value of loans available for sale			(1,238	)			0				0				0				0
Securities gains			582				48				3,615				3,374				1,083
		$	4,953			$	5,727			$	8,834			$	8,311			$	5,966

 

Over the last three years we have been investing in people to expand and help drive further increases in revenues from mortgage banking. Mortgage banking fees increased $1.6 million or 73.4 percent for the year 2012 compared to 2011.

 

Additionally, investments were made in commercial relationship managers in 2012 to help accelerate our commercial loan production in 2013 and improve revenue growth in the last half of 2012.

 

Revenue earned from service charges on deposits, and interchange income increased over the prior year as a result of increased households.  Retail household growth has been a focus over the past several years and more recently the addition of new commercial relationship managers were added for increased loan production and has also aided in efforts to attract new commercial deposit accounts.  Household acquisition for 2012 included 6,585 new personal retail checking relationships, an increase of 9.4 percent from 2011.  Likewise, new commercial business checking deposit relationships increased by 21.9 percent compared with one year ago.  Along with the new relationships, our programs have improved market share, increased average services per household and decreased customer attrition.

 

Credit quality continued to improve this quarter with nonperforming loans declining $3.5 million from the third quarter 2012 and over $4.9 million of loans were moved to other real estate owned which increased by $3.0 million. Nonperforming assets totaled $52.8 million at quarter end, up $3.4 million compared to a year earlier but down $496,000 from last quarter. The ratio of nonaccrual loans and accruing loans delinquent 90 days or more to total loans at December 31, 2012 was 3.34 percent down from 3.70 percent at September 30, 2012. Early stage delinquencies (accruing loans 30–89 days past due) remained nominal at 0.29 percent of loans outstanding. These improvements together with lower net charge offs resulted in a lower allowance loan losses of 1.80 percent of total loans for the fourth quarter 2012 compared to 1.92 percent last quarter.

 

 

Core operating expenses (total noninterest expenses less losses on other real estate owned, expenses related to branch consolidation and organizational changes and other asset disposition expenses) have been managed lower throughout the year as noted in the table below.  Noninterest expenses for 2012 totaled $82.5 million compared to $77.8 million, an increase of $4.7 million. This was due to added personnel related to growth initiatives, increased health insurance expense, severance related to organizational changes, branch consolidation expenses and outsourced data processing costs. Core operating expenses were $18.9 million in the fourth quarter or an annual run rate of $75.6 million.

 

The organizational changes and branch closures completed during the third and fourth quarters together with the other components of our profitability implementation plan announced last quarter are expected to reduce core operating expenses in 2013.

 

 

Core operating expense trends are presented in the table below:

 

(Dollars in thousands)		Q-4 2012				Q-3 2012				Q-2 2012				Q-1 2012				Q-4 2011
Noninterest Expense:
Salaries and wages		$	7,259			$	7,442			$	7,435			$	7,055			$	6,889
Employee benefits			1,860				1,924				1,916				2,010				1,447
Outsourced data processing costs			1,904				1,923				1,834				1,721				1,677
Telephone / data lines			293				299				297				289				285
Occupancy expense			1,896				1,876				1,943				1,882				1,795
Furniture and equipment expense			585				556				607				495				525
Marketing expense			707				785				677				926				947
Legal and professional fees			1,114				1,122				1,637				1,776				1,299
FDIC assessments			697				695				707				706				679
Amortization of intangibles			195				196				196				201				212
Other			2,428				2,018				2,314				2,163				2,264
Total Core Operating Expense			18,938				18,836				19,563				19,224				18,019
Severance and organizational changes			84				839				0				0				412
Branch consolidation			407				232				0				0				0
Recovery of prior legal fees			0				(500	)			0				0				0
Net loss on OREO			157				561				790				1,959				1,254
Asset dispositions expense			200				364				368				527				275
Total		$	19,785			$	20,332			$	20,721			$	21,710			$	19,960

 

The net interest margin was up 5 basis points linked quarter to 3.22 percent, but was lower by 20 basis points compared to the fourth quarter of 2011. The margin was aided by lower costs for interest bearing liabilities increased and improved mix of earning assets, which was offset by lower asset yields caused by Federal Reserve actions to stimulate economic growth.  In addition the net interest margin continues to be impacted by higher levels of overnight liquidity and short-term investments.  The average cost of deposits decreased 6 basis points to 0.20 percent during the fourth quarter 2012, and the total cost of interest bearing liabilities decreased from 0.77 percent for the fourth quarter 2011 to 0.42 percent in the fourth quarter.  The mix in deposits continues to improve, which strengthens the net interest margin, and is a result of our tactical activities designed to attract, onboard and retain new household relationships.  Noninterest bearing demand deposits increased to 24.0 percent of total deposits from 19.1 percent a year ago and total transaction accounts and customer sweep repurchase agreements now account for more than half of total customer relationship funding.

 

 

The Company will host a conference call on Friday, January 25, 2013 at 9:00 a.m. (Eastern Time) to discuss its earnings results and business trends.  Investors may call in (toll-free) by dialing (888) 517-2458 (access code: 6117222; leader: Dennis S. Hudson).  Charts will be used during the conference call and may be accessed at Seacoast’s website at www.seacoastbanking.net by selecting “Presentations” under the heading “Investor Services”.  A replay of the conference call will be available beginning the afternoon of January 25 by dialing (888) 843-7419 (domestic), using the passcode 6117222.

 

Alternatively, individuals may listen to the live webcast of the presentation by visiting the Company’s website at www.seacoastbanking.net.  The link to the live audio webcast is located in the subsection “Presentations” under the heading “Investor Services”.  Beginning the afternoon of January 25, 2013, an archived version of the webcast can be accessed from this same subsection of the website.  This webcast will be archived and available for one year. 

 

Seacoast, with approximately $2.1 billion in assets, is one of the largest independent commercial banking organizations in Florida.  Seacoast has 34 offices in South and Central Florida and is headquartered on Florida’s Treasure Coast, which is one of the wealthiest areas in the nation.

 

 

Cautionary Notice Regarding Forward-Looking Statements

 

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, ability to realized deferred tax assets, cost savings, enhanced revenues, economic and seasonal conditions in our markets, and improvements to reported earnings that may be realized from cost controls and for integration of banks that we have acquired, as well as statements with respect to Seacoast’s objectives, expectations and intentions and other statements that are not historical facts. Actual results may differ from those set forth in the forward-looking statements.

 

Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance or achievements of Seacoast to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. You should not expect us to update any forward-looking statements.

 

You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “support”, “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “further”, “point to,” “project,” “could,” “intend” or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the effects of future economic and market conditions, including seasonality; governmental monetary and fiscal policies, as well as legislative, tax and regulatory changes; changes in accounting policies, rules and practices; the risks of changes in interest rates on the level and composition of deposits, loan demand, liquidity and the values of loan collateral, securities, and interest sensitive assets and liabilities; interest rate risks, sensitivities and the shape of the yield curve; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market areas and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the Internet; and the failure of assumptions underlying the establishment of reserves for possible loan losses. The risks of mergers and acquisitions, include, without limitation: unexpected transaction costs, including the costs of integrating operations; the risks that the businesses will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; the potential failure to fully or timely realize expected revenues and revenue synergies, including as the result of revenues following the merger being lower than expected; the risk of deposit and customer attrition; any changes in deposit mix; unexpected operating and other costs, which may differ or change from expectations; the risks of customer and employee loss and business disruption, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures and solicitations of customers by competitors; as well as the difficulties and risks inherent with entering new markets.

 

 

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2011 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								Twelve Months Ended
		December 31,								December 31,
(Dollars in thousands, except share data)		2012				2011				2012				2011
Summary of Earnings
Net income (loss)		$	240			$	2,548			$	(710	)		$	6,667
Net income (loss) available to common shareholders			(697	)			1,611				(4,458	)			2,919
Net interest income (1)			16,254				17,020				64,990				67,059
Performance Ratios
Return on average assets-GAAP basis (2), (3)			0.05	%			0.48	%			(0.03	)%			0.32	%
Return on average tangible assets (2), (3), (4)			0.07				0.51				(0.01	)			0.35
Return on average shareholders' equity-GAAP basis (2), (3)			0.58				6.17				(0.43	)			4.03
Net interest margin (1), (2)			3.22				3.42				3.22				3.42
Per Share Data
Net income (loss) diluted-GAAP basis		$	(0.01	)		$	0.02			$	(0.05	)		$	0.03
Net income (loss) basic-GAAP basis			(0.01	)			0.02				(0.05	)			0.03
Cash dividends declared			0.00				0.00				0.00				0.00

 

		December 31,								Increase/
		2012				2011				(Decrease)
Credit Analysis
Net charge-offs year-to-date		$	14,257			$	14,153				0.7	%
Net charge-offs to average loans			1.16	%			1.16	%			0.0
Loan loss provision year-to-date		$	10,796			$	1,974				446.9
Allowance to loans at end of period			1.80	%			2.12	%			(15.1	)
Nonperforming loans		$	40,955			$	28,526				43.6
Other real estate owned			11,887				20,946				(43.2	)
Total non-performing assets		$	52,842			$	49,472				6.8
Restructured loans (accruing)		$	41,946			$	71,611				(41.4	)
Nonperforming assets to loans and other real estate owned at end of period			4.27	%			4.03	%			6.0
Nonperforming assets to total assets			2.43	%			2.31	%			5.2
Selected Financial Data
Total assets		$	2,173,929			$	2,137,375				1.7
Securities available for sale (at fair value)			643,050				648,362				(0.8	)
Securities held for investment (at amortized cost)			13,818				19,977				(30.8	)
Net loans			1,203,977				1,182,509				1.8
Deposits			1,758,961				1,718,741				2.3
Total shareholders' equity			165,546				170,077				(2.7	)
Common shareholders' equity			116,800				122,580				(4.7	)
Book value per share common			1.23				1.29				(4.7	)
Tangible book value per share			1.73				1.77				(2.3	)
Tangible common book value per share (5)			1.22				1.27				(3.9	)
Average shareholders' equity to average assets			7.81	%			8.01	%			(2.5	)
Tangible common equity to tangible assets (5), (6)			5.31				5.63				(5.7	)
Average Balances (Year-to-Date)
Total assets		$	2,117,075			$	2,063,684				2.6
Less: intangible assets			1,889				2,708				(30.2	)
Total average tangible assets		$	2,115,186			$	2,060,976				2.6
Total equity		$	165,381			$	165,296				0.1
Less: intangible assets			1,889				2,708				(30.2	)
Total average tangible equity		$	163,492			$	162,588				0.6

 

(1)

Calculated on a fully taxable equivalent basis using amortized cost.

(2)

These ratios are stated on an annualized basis and are not necessarily indicative of future periods.

(3)

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

(4)

The Company believes that return on average assets and equity excluding the impacts of noncash amortization expense on intangible assets is a better measurement of the Company's trend in earnings growth.

(5)

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

(6)

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

n/m = not meaningful

 

 

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)		2012				2011				2012				2011
Interest on securities:
Taxable		$	3,130			$	4,499			$	13,964			$	17,500
Nontaxable			12				17				80				140
Interest and fees on loans			14,438				15,351				58,290				62,355
Interest on federal funds sold and other investments			226				191				953				797
Total Interest Income			17,806				20,058				73,287				80,792
Interest on deposits			275				531				1,522				2,371
Interest on time certificates			598				1,826				3,969				8,615
Interest on borrowed money			725				727				2,987				2,967
Total Interest Expense			1,598				3,084				8,478				13,953
Net Interest Income			16,208				16,974				64,809				66,839
Provision for loan losses			1,136				432				10,796				1,974
Net Interest Income After Provision for Loan Losses			15,072				16,542				54,013				64,865
Noninterest income:
Service charges on deposit accounts			1,677				1,599				6,245				6,262
Trust income			592				530				2,279				2,111
Mortgage banking fees			1,030				680				3,710				2,140
Brokerage commissions and fees			292				258				1,071				1,122
Marine finance fees			258				333				1,111				1,209
Interchange income			1,157				953				4,501				3,808
Other deposit based EFT fees			83				78				336				318
Other			520				452				2,191				1,375
			5,609				4,883				21,444				18,345
Change in fair value of loan held for sale			(1,238	)			0				(1,238	)			0
Securities gains, net			582				1,083				7,619				1,220
Total Noninterest Income			4,953				5,966				27,825				19,565
Noninterest expenses:
Salaries and wages			7,342				7,301				29,935				27,288
Employee benefits			1,860				1,447				7,710				5,875
Outsourced data processing costs			1,904				1,677				7,382				6,583
Telephone / data lines			293				285				1,178				1,179
Occupancy			2,241				1,795				8,146				7,627
Furniture and equipment			647				525				2,319				2,291
Marketing			707				947				3,095				2,917
Legal and professional fees			1,114				1,299				5,241				6,137
FDIC assessments			697				679				2,805				3,013
Amortization of intangibles			195				212				788				847
Asset dispositions expense			200				275				1,459				2,281
Net loss on other real estate owned and repossessed assets			157				1,254				3,467				3,751
Other			2,428				2,264				9,023				7,974
Total Noninterest Expenses			19,785				19,960				82,548				77,763
Income (Loss) Before Income Taxes			240				2,548				(710	)			6,667
Provision for income taxes			0				0				0				0
Net Income (Loss)			240				2,548				(710	)			6,667
Preferred stock dividends and accretion on preferred stock discount			937				937				3,748				3,748
Net Income (Loss) Available to Common Shareholders		$	(697	)		$	1,611			$	(4,458	)		$	2,919
Per share of common stock:
Net income (loss) diluted		$	(0.01	)		$	0.02			$	(0.05	)		$	0.03
Net income (loss) basic			(0.01	)			0.02				(0.05	)			0.03
Cash dividends declared			0.00				0.00				0.00				0.00
Average diluted shares outstanding			94,606,884				94,364,433				94,505,805				93,801,073
Average basic shares outstanding			93,909,930				93,570,748				93,743,787				93,511,983

 

 

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

 

		December 31,				December 31,
(Dollars in thousands, except share data)		2012				2011
Assets
Cash and due from banks		$	45,620			$	41,136
Interest bearing deposits with other banks			129,367				125,945
Total Cash and Cash Equivalents			174,987				167,081
Securities:
Available for sale (at fair value)			643,050				648,362
Held for investment (at amortized cost)			13,818				19,977
Total Securities			656,868				668,339
Loans available for sale			36,021				6,795
Loans, net of deferred costs			1,226,081				1,208,074
Less: Allowance for loan losses			(22,104	)			(25,565	)
Net Loans			1,203,977				1,182,509
Bank premises and equipment, net			34,465				34,227
Other real estate owned			11,887				20,946
Other intangible assets			1,501				2,289
Other assets			54,223				55,189
		$	2,173,929			$	2,137,375
Liabilities and Shareholders' Equity
Liabilities
Deposits
Demand deposits (noninterest bearing)		$	422,833			$	328,356
NOW			509,371				469,631
Savings deposits			164,956				133,578
Money market accounts			343,915				319,152
Other time certificates			182,495				244,886
Brokered time certificates			8,203				4,558
Time certificates of $100,000 or more			127,188				218,580
Total Deposits			1,758,961				1,718,741
Federal funds purchased and securities sold under agreements to repurchase, maturing within 30 days			136,803				136,252
Borrowed funds			50,000				50,000
Subordinated debt			53,610				53,610
Other liabilities			9,009				8,695
			2,008,383				1,967,298
Shareholders' Equity
Preferred stock - Series A			48,746				47,497
Common stock			9,484				9,469
Additional paid in capital			222,851				222,048
Accumulated deficit			(118,611	)			(114,152	)
Treasury stock			(62	)			(13	)
			162,408				164,849
Accumulated other comprehensive gain, net			3,138				5,228
Total Shareholders' Equity			165,546				170,077
		$	2,173,929			$	2,137,375
Common Shares Outstanding			94,837,170				94,686,801

 

Note: The balance sheet at December 31, 2011 has been derived from the audited financial statements at that date.

 

 

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

 

		QUARTERS
		2012																Last 12
(Dollars in thousands, except per share data)		Fourth				Third				Second				First				Months
Net income		$	240			$	447			$	(2,335	)		$	938			$	(710	)
Operating Ratios
Return on average assets-GAAP basis (2),(3)			0.05	%			0.08	%			(0.44	)%			0.18	%			(0.03	)%
Return on average tangible assets (2),(3),(4)			0.07				0.11				(0.42	)			0.20				(0.01	)
Return on average shareholders' equity-GAAP basis (2),(3)			0.58				1.09				(5.56	)			2.26				(0.43	)
Net interest margin (1),(2)			3.22				3.17				3.17				3.33				3.22
Average equity to average assets			7.73				7.77				7.90				7.85				7.81
Credit Analysis
Net charge-offs		$	2,151			$	2,416			$	6,275			$	3,415			$	14,257
Net charge-offs to average loans			0.69	%			0.79	%			2.05	%			1.13	%			1.16	%
Loan loss provision		$	1,136			$	900			$	6,455			$	2,305			$	10,796
Allowance to loans at end of period			1.80	%			1.92	%			2.02	%			2.01	%
Restructured loans (accruing)		$	41,946				44,179				54,842				57,665
Nonperforming loans		$	40,955				44,450				48,482				41,716
Other real estate owned			11,887				8,888				7,219				15,530
Nonperforming assets		$	52,842			$	53,338			$	55,701			$	57,246
Nonperforming assets to loans and other real estate owned at end of period			4.27	%			4.40	%			4.53	%			4.65	%
Nonperforming assets to total assets			2.43				2.56				2.64				2.64
Nonaccrual loans and accruing loans 90 days or more past due to loans outstanding at end of period			3.34				3.70				3.97				3.43
Per Share Common Stock
Net income (loss) diluted-GAAP basis		$	(0.01	)		$	(0.01	)		$	(0.03	)		$	0.00			$	(0.05	)
Net income (loss) basic-GAAP basis			(0.01	)			(0.01	)			(0.03	)			0.00			$	(0.05	)
Cash dividends declared			-				-				-				-			$	-
Book value per share common			1.23				1.25				1.24				1.30
Average Balances
Total assets		$	2,111,986			$	2,096,694			$	2,133,713			$	2,126,186
Less: Intangible assets			1,596				1,793				1,988				2,184
Total average tangible assets		$	2,110,390			$	2,094,901			$	2,131,725			$	2,124,002
Total equity		$	163,341			$	162,902			$	168,457			$	166,874
Less: Intangible assets			1,596				1,793				1,988				2,184
Total average tangible equity		$	161,745			$	161,109			$	166,469			$	164,690

 

(1)

Calculated on a fully taxable equivalent basis using amortized cost.

(2)

These ratios are stated on an annualized basis and are not necessarily indicative of future periods.

(3)

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

(4)

The Company believes that return on average assets and equity excluding the impacts of noncash amortization expense on intangible assets is a better measurement of the Company's trend in earnings growth.

 

		December 31,				December 31,
SECURITIES		2012				2011
U.S. Treasury and U.S. Government Agencies		$	1,707			$	1,724
Mortgage-backed			640,445				645,471
Obligations of states and political subdivisions			898				1,167
Other securities			0				0
Securities Available for Sale			643,050				648,362
Mortgage-backed			5,965				12,315
Obligations of states and political subdivisions			6,353				6,662
Other securities			1,500				1,000
Securities Held for Investment			13,818				19,977
Total Securities		$	656,868			$	668,339

 

		December 31,				December 31,
LOANS		2012				2011
Construction and land development		$	60,736			$	49,184
Real estate mortgage			1,056,159				1,054,599
Installment loans to individuals			46,930				50,611
Commercial and financial			61,903				53,105
Other loans			353				575
Total Loans		$	1,226,081			$	1,208,074

  

 

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

 

		2012																2011
		Fourth Quarter								Third Quarter								Fourth Quarter
		Average				Yield/				Average				Yield/				Average				Yield/
(Dollars in thousands)		Balance				Rate				Balance				Rate				Balance				Rate
Assets
Earning assets:
Securities:
Taxable		$	604,412				2.07	%		$	572,328				2.23	%		$	614,939				2.93	%
Nontaxable			1,670				4.31				1,972				6.49				2,591				4.17
Total Securities			606,082				2.08				574,300				2.24				617,530				2.93
Federal funds sold and other investments			162,599				0.55				209,461				0.46				147,017				0.52
Loans, net			1,241,711				4.64				1,223,313				4.68				1,210,028				5.05
Total Earning Assets			2,010,392				3.53				2,007,074				3.54				1,974,575				4.04
Allowance for loan losses			(23,820	)							(24,807	)							(27,689	)
Cash and due from banks			39,321								29,227								35,312
Premises and equipment			34,566								35,003								34,517
Other assets			51,527								50,197								68,751
		$	2,111,986							$	2,096,694							$	2,085,466
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
NOW (2)		$	449,476				0.11	%		$	419,007				0.15	%		$	422,480				0.20	%
Savings deposits			161,156				0.09				157,577				0.11				131,554				0.11
Money market accounts (2)			346,089				0.13				350,213				0.21				325,111				0.34
Time deposits			330,556				0.72				358,504				0.82				475,666				1.52
Federal funds purchased and other short term borrowings			131,628				0.23				140,932				0.24				127,956				0.22
Other borrowings			103,610				2.50				103,610				2.57				103,610				2.50
Total Interest-Bearing Liabilities			1,522,515				0.42				1,529,843				0.49				1,586,377				0.77
Demand deposits (noninterest-bearing)			416,482								394,467								326,215
Other liabilities			9,648								9,482								9,017
Total Liabilities			1,948,645								1,933,792								1,921,609
Shareholders' equity			163,341								162,902								163,857
		$	2,111,986							$	2,096,694							$	2,085,466
Interest expense as a % of earning assets							0.32	%							0.37	%							0.62	%
Net interest income as a % of earning assets							3.22								3.17								3.42

 

(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.
(2)	Certain reclassifications have been made to prior years' presentations to conform to the current year presentation.

 

 

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

 

 

		2012																2011
(Dollars in thousands)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
Customer Relationship Funding (Period End)
Demand deposits (noninterest bearing)		$	422,833			$	409,145			$	393,681			$	394,532			$	328,356
NOW accounts			509,371				420,477				420,449				436,712				469,631
Money market accounts			343,915				348,275				346,191				330,409				319,152
Savings savings accounts			164,956				158,208				156,019				148,068				133,578
Time certificates of deposit			317,886				343,361				373,244				427,738				468,024
Total Deposits			1,758,961				1,679,466				1,689,584				1,737,459				1,718,741
Sweep repurchase agreements			136,803				122,393				139,489				149,316				136,252
Total core customer funding (1)			1,577,878				1,458,498				1,455,829				1,459,037				1,386,969

 

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

 

 

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

 

		2011																2012
		1st Qtr				2nd Qtr				3rd Qtr				4th Qtr				1st Qtr				2nd Qtr				3rd Qtr				4th Qtr
Construction and land development
Residential
Condominiums		$	0.5			$	-			$	-			$	-			$	-			$	-			$	-			$	-
Townhomes			-				-				-				-				-				-				-				-
Single family residences			-				-				-				-				-				-				-				-
Single family land and lots			6.6				6.5				6.4				6.2				6.0				5.9				5.8				5.6
Multifamily			6.1				5.7				5.5				5.1				4.9				4.7				4.6				4.3
			13.2				12.2				11.9				11.3				10.9				10.6				10.4				9.9
Commercial
Office buildings			-				-				-				0.2				0.3				-				-				-
Retail trade			-				-				-				-				-				-				-				-
Land			33.9				10.3				10.2				9.3				9.2				10.7				9.8				9.6
Industrial			-				-				-				-				-				-				-				-
Healthcare			-				-				-				-				-				-				-				1.8
Churches and educational facilities			-				-				-				0.1				0.3				0.3				0.7				0.5
Lodging			-				-				-				-				-				-				-				-
Convenience stores			0.5				0.6				0.6				1.7				1.4				1.4				-				-
Marina			-				-				-				-				-				-				-				-
Other			-				-				-				-				-				-				-				-
			34.4				10.9				10.8				11.3				11.2				12.4				10.5				11.9
Individuals
Lot loans			20.8				19.4				18.6				17.9				18.4				17.6				16.4				16.7
Construction			7.3				6.7				6.4				8.7				13.5				16.6				18.9				22.2
			28.1				26.1				25.0				26.6				31.9				34.2				35.3				38.9
Total construction and land development			75.7				49.2				47.7				49.2				54.0				57.2				56.2				60.7
Real estate mortgages
Residential real estate
Adjustable			308.6				314.3				324.4				334.1				341.6				359.4				353.7				361.0
Fixed rate			86.6				88.8				92.8				97.0				96.2				95.4				99.7				99.0
Home equity mortgages			67.7				63.1				63.6				60.2				59.5				58.3				58.4				58.0
Home equity lines			57.4				56.9				55.1				54.9				53.0				50.8				50.6				51.4
			520.3				523.1				535.9				546.2				550.3				563.9				562.4				569.4
Commercial real estate
Office buildings			121.3				120.0				122.0				119.6				118.0				113.4				102.4				104.7
Retail trade			150.6				149.6				146.1				140.6				139.3				128.5				121.1				126.7
Industrial			76.3				68.5				72.5				70.7				70.0				72.0				71.3				72.6
Healthcare			26.6				26.3				29.6				38.8				40.2				42.0				35.8				40.7
Churches and educational facilities			28.6				28.2				27.8				27.4				27.0				26.7				26.2				28.6
Recreation			2.8				2.8				2.7				3.2				3.1				3.1				2.7				2.7
Multifamily			14.2				16.8				15.4				9.4				8.8				8.3				7.8				9.0
Mobile home parks			2.5				2.4				2.2				2.2				2.1				2.1				2.1				2.0
Lodging			21.7				20.0				19.8				19.6				19.4				19.3				19.1				18.7
Restaurant			4.2				4.3				4.3				4.7				4.6				4.7				4.4				3.5
Agricultural			9.2				9.2				8.9				8.8				7.6				7.4				7.3				6.1
Convenience stores			20.1				20.0				19.8				15.1				15.5				15.4				16.6				20.5
Marina			21.7				21.5				21.4				21.3				21.6				21.5				21.4				21.2
Other			27.4				27.3				26.9				27.0				29.3				29.3				35.6				29.8
			527.2				516.9				519.4				508.4				506.5				493.7				473.8				486.8
Total real estate mortgages			1,047.5				1,040.0				1,055.3				1,054.6				1,056.8				1,057.6				1,036.2				1,056.2
Commercial & financial			51.5				48.0				53.5				53.1				54.6				56.2				58.2				61.9
Installment loans to individuals
Automobile and trucks			10.1				9.5				9.2				8.7				8.2				8.1				8.0				7.8
Marine loans			19.4				20.2				21.6				19.9				21.1				20.8				23.0				18.4
Other			20.9				21.6				20.9				22.0				21.5				21.3				20.6				20.7
			50.4				51.3				51.7				50.6				50.8				50.2				51.6				46.9
Other			0.3				0.4				0.3				0.6				0.2				0.2				0.3				0.4
		$	1,225.4			$	1,188.9			$	1,208.5			$	1,208.1			$	1,216.4			$	1,221.4			$	1,202.5			$	1,226.1

 

 

QUARTERLY TRENDS - INCREASE (DECREASE) IN LOANS BY QUARTER (Dollars in Millions)	(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

 

		2011																2012
		1st Qtr				2nd Qtr				3rd Qtr				4th Qtr				1st Qtr				2nd Qtr				3rd Qtr				4th Qtr
Construction and land development
Residential
Condominiums		$	(0.4	)		$	(0.5	)		$	-			$	-			$	-			$	-			$	-				-
Townhomes			-				-				-				-				-				-				-				-
Single family residences			-				-				-				-				-				-				-				-
Single family land and lots			(0.4	)			(0.1	)			(0.1	)			(0.2	)			(0.2	)			(0.1	)			(0.1	)			(0.2	)
Multifamily			-				(0.4	)			(0.2	)			(0.4	)			(0.2	)			(0.2	)			(0.1	)			(0.3	)
			(0.8	)			(1.0	)			(0.3	)			(0.6	)			(0.4	)			(0.3	)			(0.2	)			(0.5	)
Commercial
Office buildings			-				-				-				0.2				0.1				(0.3	)			-				-
Retail trade			-				-				-				-				-				-				-				-
Land			0.3				(23.6	)			(0.1	)			(0.9	)			(0.1	)			1.5				(0.9	)			(0.2	)
Industrial			-				-				-				-				-				-				-				-
Healthcare			-				-				-				-				-				-				-				1.8
Churches and educational facilities			-				-				-				0.1				0.2				-				0.4				(0.2	)
Lodging			-				-				-				-				-				-				-				-
Convenience stores			0.3				0.1				-				1.1				(0.3	)			-				(1.4	)			-
Marina			-				-				-				-				-				-				-				-
Other			-				-				-				-				-				-				-				-
			0.6				(23.5	)			(0.1	)			0.5				(0.1	)			1.2				(1.9	)			1.4
Individuals
Lot loans			(3.6	)			(1.4	)			(0.8	)			(0.7	)			0.5				(0.8	)			(1.2	)			0.3
Construction			0.2				(0.6	)			(0.3	)			2.3				4.8				3.1				2.3				3.3
			(3.4	)			(2.0	)			(1.1	)			1.6				5.3				2.3				1.1				3.6
Total construction and land development			(3.6	)			(26.5	)			(1.5	)			1.5				4.8				3.2				(1.0	)			4.5
Real estate mortgages
Residential real estate
Adjustable			5.3				5.7				10.1				9.7				7.5				17.8				(5.7	)			7.3
Fixed rate			4.0				2.2				4.0				4.2				(0.8	)			(0.8	)			4.3				(0.7	)
Home equity mortgages			(5.7	)			(4.6	)			0.5				(3.4	)			(0.7	)			(1.2	)			0.1				(0.4	)
Home equity lines			(0.3	)			(0.5	)			(1.8	)			(0.2	)			(1.9	)			(2.2	)			(0.2	)			0.8
			3.3				2.8				12.8				10.3				4.1				13.6				(1.5	)			7.0
Commercial real estate
Office buildings			(0.7	)			(1.3	)			2.0				(2.4	)			(1.6	)			(4.6	)			(11.0	)			2.3
Retail trade			(0.9	)			(1.0	)			(3.5	)			(5.5	)			(1.3	)			(10.8	)			(7.4	)			5.6
Industrial			(1.7	)			(7.8	)			4.0				(1.8	)			(0.7	)			2.0				(0.7	)			1.3
Healthcare			(3.4	)			(0.3	)			3.3				9.2				1.4				1.8				(6.2	)			4.9
Churches and educational facilities			(0.2	)			(0.4	)			(0.4	)			(0.4	)			(0.4	)			(0.3	)			(0.5	)			2.4
Recreation			(0.1	)			-				(0.1	)			0.5				(0.1	)			-				(0.4	)			-
Multifamily			(8.2	)			2.6				(1.4	)			(6.0	)			(0.6	)			(0.5	)			(0.5	)			1.2
Mobile home parks			-				(0.1	)			(0.2	)			-				(0.1	)			-				-				(0.1	)
Lodging			(0.2	)			(1.7	)			(0.2	)			(0.2	)			(0.2	)			(0.1	)			(0.2	)			(0.4	)
Restaurant			(0.3	)			0.1				-				0.4				(0.1	)			0.1				(0.3	)			(0.9	)
Agricultural			(1.4	)			-				(0.3	)			(0.1	)			(1.2	)			(0.2	)			(0.1	)			(1.2	)
Convenience stores			1.5				(0.1	)			(0.2	)			(4.7	)			0.4				(0.1	)			1.2				3.9
Marina			(0.2	)			(0.2	)			(0.1	)			(0.1	)			0.3				(0.1	)			(0.1	)			(0.2	)
Other			(0.6	)			(0.1	)			(0.4	)			0.1				2.3				-				6.3				(5.8	)
			(16.4	)			(10.3	)			2.5				(11.0	)			(1.9	)			(12.8	)			(19.9	)			13.0
Total real estate mortgages			(13.1	)			(7.5	)			15.3				(0.7	)			2.2				0.8				(21.4	)			20.0
Commercial & financial			2.7				(3.5	)			5.5				(0.4	)			1.5				1.6				2.0				3.7
Installment loans to individuals
Automobile and trucks			(0.8	)			(0.6	)			(0.3	)			(0.5	)			(0.5	)			(0.1	)			(0.1	)			(0.2	)
Marine loans			(0.4	)			0.8				1.4				(1.7	)			1.2				(0.3	)			2.2				(4.6	)
Other			-				0.7				(0.7	)			1.1				(0.5	)			(0.2	)			(0.7	)			0.1
			(1.2	)			0.9				0.4				(1.1	)			0.2				(0.6	)			1.4				(4.7	)
Other			-				0.1				(0.1	)			0.3				(0.4	)			-				0.1				0.1
		$	(15.2	)		$	(36.5	)		$	19.6			$	(0.4	)		$	8.3			$	5.0			$	(18.9	)			23.6