Exhibit 99.1

 

	CONTACTS:
	Stephen Fowle, EVP and CFO
	(772) 463-8977
	steve.fowle@seacoastbank.com

 

Seacoast Q3 Net Income Rises More Than 48% Year-over-Year to $4.4 Million

Revenue Growth Propels Adjusted Net Income Up 96% to $6.4 million, Adjusted Diluted Earnings Per Common Share Increases 46% to $0.19

 

Third Quarter 2015 Earnings Highlights

·

Revenues increased $2.6 million to a record $37.1 million, or 7.5% compared to Q2 2015, and $13.7 million, or 59% compared to Q3 2014.

·

Net interest margin increased 58 basis points year-over-year to 3.75% and net interest income improved $11.8 million or 69%, reflecting organic growth and acquisition activity.

·

Adjusted net income excluding merger costs and other adjustments1 increased 96% to $6.4 million, or $ 0.19 per diluted share, compared to $3.3 million, or $0.13 per diluted share, in Q3 2014.

 

Third Quarter 2015 Growth Highlights

·

Loans increased $162 million or 8% compared to Q2 2015, and rose 51% year-over-year. Excluding acquisitions, loans increased $58 million or 3% compared to Q2 2015 and $227 million or 16% from Q3 2014.

·

Total households increased a strong 4% (not annualized) compared to Q2 2015 and 23% compared to Q3 2014. Excluding acquisition, household growth accelerated to 6% (annualized) over Q2 levels.

·

Seacoast closed the Grand Bankshares, Inc. acquisition and completed the conversion of Grand’s customers over the July 17 weekend, adding approximately $188 million in deposits and $112 million in gross loans in the attractive Palm Beach market with minimal customer attrition.

 

STUART, Fla., October 22, 2015 /PRNewswire/ — Seacoast Banking Corporation of Florida (NASDAQ: SBCF) today reported results for the third quarter of 2015. Third quarter revenue rose $2.6 million, or 7.5%, to $37.1 million compared to $34.5 million in the prior quarter. Net income increased $1.4 million, or 48%, to $4.4 million, compared to the third quarter of 2014, and adjusted net income¹ increased $3.1 million or 96% from year-ago levels. Diluted earnings per common share were $0.13 and adjusted diluted earnings per common share¹ were $0.19 in the third quarter compared with $0.13 in the third quarter of 2014 and $0.19 in the second quarter of 2015.

 

¹ Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures”

 

 

Net income improved 123% to $16.1 million, or $0.48 per diluted common share, for the first three quarters of 2015 from $7.2 million, or $0.28 per diluted common share, for the first three quarters of 2014.

 

Dennis S. Hudson, III, Chairman and CEO said, "We continue to build momentum, growing our top-line and improving earnings and profitability while investing for the future and managing risk. Our balanced expansion strategy, combining strong organic growth with strategic acquisitions in attractive Florida markets, positions Seacoast for continued success.”

 

"As we strengthen our franchise, we have invested for the future, especially in high quality employees. This quarter’s expenses reflect the first full quarter with our receivables funding team from First Growth Capital (FGC), nearly a full quarter of Grand Bankshares in Palm Beach, and new hires to support organic revenue initiatives,” continued Hudson. “We look forward to considerable positive impact from these investments in succeeding quarters.”

 

"In addition to successfully integrating Palm Beach-based Grand Bankshares during the third quarter,” Hudson said, “we recently announced an agreement to purchase BMO Harris Bank’s Orlando banking franchise, including retail and business banking employees and customers. This acquisition builds on our 2014 acquisition of BankFIRST and makes us a Top-10 bank in the attractive Orlando market, adding nearly 8,500 additional households. We look forward to welcoming these customers in early 2016.”

 

FINANCIAL HIGHLIGHTS (Dollars in thousands except per share data)		3Q15				2Q15				1Q15				4Q14				3Q14
Total Assets		$	3,378,108			$	3,233,588			$	3,231,956			$	3,093,335			$	2,361,813
Loans			2,099,447				1,937,399				1,854,487				1,821,885				1,391,082
Deposits			2,742,296				2,605,177				2,609,825				2,416,534				1,808,550
Net Income (Loss) Available to Common  Shareholders			4,441				5,805				5,859				(1,517	)			2,996
Diluted Earnings Per Share			0.13				0.18				0.18				(0.05	)			0.12
Return on Average Assets			0.52	%			0.72	%			0.75	%			(0.20	%)			0.52	%
Net Interest Margin			3.75				3.50				3.62				3.56				3.17
Efficiency Ratio			76.3				68.6				68.3				104.5				82.8
Pretax, Pre-provision Income (1)		$	8,126			$	10,224			$	9,832			($	2,029	)		$	3,832
Average Diluted Shares Outstanding (000)			34,194				33,234				33,136				33,124				26,026
Adjusted Net Income (1)		$	6,433			$	6,172			$	6,177			$	4,179			$	3,286
Adjusted Diluted Earnings Per Share (1)			0.19				0.19				0.19				0.13				0.13
Adjusted Return on Average Assets (1)			0.76	%			0.77	%			0.79	%			0.55	%			0.57	%
Adjusted Efficiency Ratio (1)			68.2				67.5				67.5				74.8				79.6
Adjusted Pretax, Pre-provision Income (1)		$	11,328			$	10,815			$	10,342			$	7,464			$	4,341
Annualized Adjusted Core Operating Expenses as a Percent of Average Assets (1)			3.03	%			2.91	%			2.88	%			3.13	%			3.21	%

 

 

Acquisitions Update

 

Hudson noted that, “Seacoast continued to benefit from acquisitions integrated during the last four quarters. Our acquisition of Grand Bankshares on July 17 doubled our existing share in the attractive Palm Beach County market and made us the third-largest Florida-based bank doing business there.”

 

Nearly a year after completing our acquisition, customer metrics for Winter Park-based BankFIRST are extremely encouraging. Household growth for former BankFIRST customers was 7.5% annualized and cross-sell, the number of products used by each household, increased at a 9.4% annualized rate.

 

Florida Economic Update

"We continue to enjoy the tailwinds of a strong regional economy, with data showing that Florida is significantly outperforming the nation," said Hudson.

 

Wells Fargo’s Economics Group, in its report titled “Florida’s Economy Continues to See Solid Job Gains” stated, “On a year-over-year basis, nonfarm employment has risen a solid 3.3 percent throughout Florida, reflecting an increase of 261,500 jobs. The nation as a whole reported a gain of 2.1 percent over the year. Florida’s year-to-year job gains have exceeded the nation every month since April 2012.” The report noted that Florida’s unemployment rate dropped 0.2 percentage points to 5.3% in August with the steepest declines in areas hard hit by the housing slump and now recovering nicely.

 

The future also looks promising. In its “Southeast Florida 3^rd Quarter 2015 Market Outlook”, PNC Financial Services Group stated that, “…Southeast Florida’s economy will be an above-average performer in 2015 and 2016. A strengthening global economy will sustain trade and investment while rising real disposable income nationally will boost tourism.” The article continued, “Longer term, strong population growth, well-developed infrastructure and deep international linkages will give the region a higher trend rate of economic growth.”

 

Income Statement Highlights

 

Core Loan Growth and Acquisition Fuel Net Interest Income and Margin Expansion

Net interest income for the quarter totaled $29.0 million, an $11.8 million or 68% increase from third quarter 2014 levels. Net interest margin expanded to 3.75%, a 58 basis point, or an 18% increase from the prior year. Year-over-year net interest income and margin increases reflect acquisition activity, core deposit and loan growth, and the strategic investment of excess liquidity.

 

Net interest income increased $3.3 million or 13% and net interest margin expanded 25 basis points or 7% from 3.50% in the prior quarter. Linked quarter results reflect an improved balance sheet mix and acquisition activity. In addition, net interest income benefited from excess purchased loan accretion recognized from early loan payoffs, contributing approximately 10 basis points in margin to the quarter.

 

 

Noninterest Income

Noninterest income excluding security gains, totaled $8.1 million for the third quarter, an increase of $1.9 million or 31% from a year ago. Year-over-year growth in all categories of service fee income reflects strength in customer acquisition and cross sell, as well as benefits from acquisition activity.

 

Noninterest income declined from the prior quarter’s $8.8 million, the result of a $725,000 gain on a participated loan included in noninterest income in the second quarter. Excluding the gain on the participated loan, noninterest income was down slightly. A strong quarter for mortgage banking fees and wealth management was offset by seasonal volatility in marine lending fees.

 

Noninterest Expense Increases from Acquisition and Investments in Franchise

Noninterest expense increased $9.2 million or 46% from the third quarter 2014. Year-over-year expense increases reflect the acquisitions of The BANKshares, FGC and Grand Bankshares, merger related expenses and other one-time expenses totaling $3.0 million in the third quarter compared to $0.6 million in the prior year, and additional investments to promote organic growth.

 

Noninterest expense increased $4.8 million or 20% from the prior quarter. Excluding merger related charges and other one-time items, noninterest expenses grew $2.1 million or 9%. A significant amount of this increase is related to nearly a full quarter’s operating expense impact from the Grand Bankshares acquisition. Other areas of investment in the franchise include: a full quarter’s expense related to the acquisition of FGC during the second quarter 2015 which contributed approximately $309,000 in additional expense, production-driven commission and incentive expense which added approximately $352,000, core legal and professional fees that typically vary from quarter to quarter totaling $396,000, and marketing expense focused on customer acquisition and corporate brand awareness surrounding the Grand Bankshares Palm Beach footprint which contributed $133,000 to the increase.

 

Seacoast’s efficiency ratio was 76.3%, improving from 82.8% in the prior year. This decrease is related to improved operating leverage, as strong revenue growth outpaced expenses offset by a significant amount of merger related costs. Seacoast’s adjusted efficiency ratio¹ was 68.2%, a 14% improvement from the 79.6% one year ago and a slight increase from 67.5% in the second quarter 2015.

 

Balance Sheet Highlights

 

Deposit Growth Reflects Success of Core Customer Increase and Acquisitions

Total deposits increased 51.6% to $2.74 billion at September 30, 2015, from year ago levels. Core customer funding increased to $2.58 billion at September 30, 2015, an $898.2 million increase from the third quarter of 2014. Excluding acquisitions, core customer funding increased by $292.6 million or 17.4% from one year ago and total deposits increased $229.0 million or 12.7% from one year ago. Excluding Grand Bankshares, core customer funding decreased $45.5 million compared to the prior quarter, entirely due to seasonal declines in public funds.

 

Noninterest demand deposits grew $61.4 million, or 7.6% from the second quarter and $347.9 million or 66.6% from the third quarter of 2014. Noninterest demand deposits increased to 31.7% of total deposits, up from 28.9% one year ago.

 

¹ Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures”

 

(Dollars in thousands)		Third Quarter 2015				Second Quarter 2015				First Quarter 2015				Fourth Quarter 2014				Third Quarter 2014
Customer Relationship Funding
Noninterest demand		$	869,877			$	808,429			$	793,336			$	725,238			$	522,001
Interest-bearing demand			618,344				599,268				634,854				652,353				479,827
Money market			660,632				621,973				596,600				450,172				344,726
Savings			286,810				282,588				272,963				264,738				215,076
Time certificates of deposit			306,633				292,919				312,072				324,033				246,920
Total deposits			2,742,296				2,605,177				2,609,825				2,416,534				1,808,550
Customer sweep accounts			148,607				157,676				170,023				153,640				124,436
Total core customer funding (1)		$	2,584,270			$	2,469,934			$	2,467,776			$	2,246,141			$	1,686,066
Demand deposit mix (noninterest bearing)			31.7	%			31.0	%			30.4	%			30.0	%			28.9	%

(1)

Total deposits and customer sweep accounts, excluding time certificates of deposit.

 

Loans Up Substantially from Acquisition and Strong Core Growth

Total loans were $2.10 billion at September 30, 2015, an increase of $708 million or 51% from a year ago. Excluding acquired loans, loans increased $227 million or 16% from the prior year’s third quarter.

 

Commercial loan originations for the quarter were $71.8 million with the commercial pipeline (in underwriting and approval or approved and not yet closed) totaling a strong $104.9 million at September 30, 2015 only slightly below second quarter levels and well in excess of recent history. Consumer loan and small business originations (inclusive of lines of credit) totaled $51.1 million in the third quarter of 2015 compared to $55.3 million in the second quarter and $24.5 million one year ago.

 

Along with this strong loan growth, the portfolio continued to build granularity, with solid industry diversification. The average commercial and small business loan originated in the first three quarters of 2015 totaled only $278,000.

 

Closed residential production totaled $74.0 million compared with $66.0 million a year ago, with a total residential pipeline of $38.0 million at September 30, 2015 versus a pipeline of $22.6 million one year ago.

 

(Dollars in thousands)		3Q 15				2Q 15				1Q15				4Q14				3Q14
Commercial pipeline		$	104,915			$	108,538			$	82,143			$	60,136			$	45,534
Commercial loans closed			71,823				85,815				61,357				94,719				72,630
Total Commercial loan originations and pipeline		$	176,738			$	194,353			$	143,500			$	154,855			$	118,164
Residential pipeline		$	37,958			$	53,902			$	48,485			$	21,351			$	22,588
Residential loans retained			36,027				45,596				23,951				31,598				31,781
Residential loans sold			37,996				36,182				31,896				26,336				34,228
Total Residential loan originations and pipeline		$	111,981			$	135,680			$	104,332			$	79,285			$	88,597

 

 

Other Highlights

 

Credit Quality Remains Stable with Growth Trends

The provision for loan losses increased to $987,000 for the third quarter of 2015, up from a $1.4 million recapture in the third quarter 2014 and a $132,000 or 15% increase from $855,000 recorded in the second quarter 2015. The third quarter provision is attributable to loan growth during the quarter and was also impacted by $655,000 related to a single purchased credit impaired loan performing below our initial expectations. The allowance for loan losses for non-acquired loans was 1.11% of total loans, compared to 1.10% in the second quarter 2015.

 

Additional highlights include:

·

Nonperforming loans to total loans outstanding at the end of the third quarter was 0.8%, down from 1.4% at September 30, 2014;

·

Nonperforming assets to total assets declined to 0.7%, compared to 1.0% a year ago.

 

Capital Ratios Continue to Improve from Earnings Momentum

Capital ratios remain healthy and well above regulatory requirements for well-capitalized institutions. The common equity tier 1 capital ratio (CET1) is estimated at 12.9% and the total capital ratio is estimated at 15.5% at September 30, 2015. The tier 1 leverage ratio is estimated at 10.6% at September 30, 2015 compared to 10.1% at June 30, 2015.

 

Tangible book value increased $0.31 per share to $9.18 and book value per share increased $0.36 to $10.20 at September 30, 2015, versus the prior quarter. Average tangible common equity to assets was a strong 9.40% for the third quarter 2015.

 

Conference Call Information

Seacoast will host a conference call on Friday, October 23, 2015 at 1:00 p.m. (Eastern Time) to discuss the earnings results. Investors may call in (toll-free) by dialing (888) 517-2513 (passcode: 7789246; host: Dennis S. Hudson). Slides will be used during the conference call and may be accessed at Seacoast's website at SeacoastBanking.com by selecting "Presentations" under the heading "Investor Services." A replay of the call will be available for one month, beginning late afternoon of October 23, by dialing (888) 843-7419 (domestic), using the passcode 7789246.

 

Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast's website at SeacoastBanking.com. The link is located in the subsection "Presentations" under the heading "Investor Services." Beginning the afternoon of October 23, 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.

 

About Seacoast Banking Corporation of Florida (NASDAQ: SBCF)

Seacoast Banking Corporation of Florida is one of the largest community banks headquartered in Florida with approximately $3.4 billion in assets and $2.7 billion in deposits as of September 30, 2015. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, 43 traditional branches of its locally-branded wholly-owned subsidiary bank, Seacoast Bank, and five commercial banking centers. Offices stretch from Ft. Lauderdale, Boca Raton and West Palm Beach north through the Space Coast of Florida, into Orlando and Central Florida, and west to Okeechobee and surrounding counties. More information about the Company is available at SeacoastBanking.com.

 

 

Sources:

 

https://www08.wellsfargomedia.com/downloads/pdf/com/insights/economics/regional-reports/FL_Employment_09182015.pdf

http://www.fsfoa.org/documents/PNCMarketOutlook.pdf

 

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, 2014, 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.

 

 

Explanation of Certain Unaudited Non-GAAP Financial Measures

 

This press release contains financial information determined by methods other than Generally Accepted Accounting Principles ("GAAP"). The financial highlights provide reconciliations between GAAP net income and adjusted net income, GAAP income and adjusted pretax, pre-provision income. Management uses these non-GAAP financial measures in its analysis of the Company's performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company's performance. The Company believes the non-GAAP measures enhance investors' understanding of the Company's business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently. The Company provides reconciliations between GAAP and these non-GAAP measures. These disclosures should not be considered an alternative to GAAP.

 

To better evaluate its earnings, the Company removes certain items to arrive at adjusted net income, adjusted pretax, pre-provision income and adjusted diluted earnings per share (non-GAAP measures) as detailed in the table below:

 

(Dollars in thousands except per share data)		Third Quarter 2015				Second Quarter 2015				First Quarter 2015				Fourth Quarter 2014				Third Quarter 2014
Net income		$	4,441			$	5,805			$	5,859			$	(1,517	)		$	2,996
Severance			98				29				12				478				328
Merger related charges			2,692				337				275				2,722				399
Branch closure charges and costs related to expense initiatives			121				0				0				4,261				68
Marketing and brand refresh expense			0				0				0				697				0
Stock compensation expense and other incentive costs related to improved outlook			0				0				0				1,213				0
Security (gains)			(160	)			0				0				(108	)			(344	)
Miscellaneous losses (gains)			112				0				0				119				(45	)
Recovery of nonaccrual loan interest			0				0				0				0				(192	)
Net loss on OREO and repossessed assets			262				53				81				9				156
Asset dispositions expense			77				173				143				103				139
Effective tax rate on adjustments			(1,210	)			(225	)			(193	)			(3,798	)			(219	)
Adjusted Net Income (1)			6,433				6,172				6,177				4,179				3,286
Provision (recapture) for loan losses			987				855				433				118				(1,425	)
Income taxes			3,908				3,788				3,732				3,167				2,480
Adjusted pretax, pre-provision income (1)		$	11,328			$	10,815			$	10,342			$	7,464			$	4,341
Adjusted earnings per diluted share (1)		$	0.19			$	0.19			$	0.19			$	0.13			$	0.13
Average shares outstanding (000)			34,194				33,234				33,136				33,124				26,026

 

(1)

Non-GAAP measure

 

 

 

FINANCIAL  HIGHLIGHTS	(Unaudited)
SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES

 

(Dollars in thousands, except share data)		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,				September 30,
		2015				2015				2014				2015				2014
Summary of Earnings
Net income		$	4,441			$	5,805			$	2,996			$	16,105			$	7,213
Net interest income  (1)			29,130				25,788				17,282				80,752				50,338
Net interest margin  (1), (2)			3.75				3.50				3.17				3.62				3.11
																			.
Performance Ratios
Return on average assets-GAAP basis (2), (3)			0.52	%			0.72	%			0.52	%			0.66	%			0.42	%
Return on average shareholders' equity-GAAP basis (2), (3)			5.05				7.13				4.97				6.49				4.09
Return on average tangible shareholders' equity-GAAP basis (2), (3), (4)			5.94				8.20				5.19				7.50				4.31
Efficiency ratio (5)			76.29				68.57				82.78				71.23				85.49
Noninterest income to total revenue			21.79				25.63				26.30				23.16				25.97
Per Share Data
Net income diluted-GAAP basis		$	0.13			$	0.18			$	0.12			$	0.48			$	0.28
Net income basic-GAAP basis			0.13				0.18				0.12				0.48				0.28
Book value per share common			10.20				9.84				9.07				10.20				9.07
Tangible book value per share			9.18				8.87				9.06				9.18				9.06
Cash dividends declared			0.00				0.00				0.00				0.00				0.00

 

(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.

(4)

The Company defines tangible common equity as total shareholder's equity less intangible assets.

(5)

Defined as (noninterest expense less foreclosed property expense and amortization of intangibles) divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains).

 

 

FINANCIAL HIGHLIGHTS

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

 

		September 30,				June 30,				September 30,
(Dollars in thousands, except share data)		2015				2015				2014
Selected Financial Data
Total assets		$	3,378,108			$	3,233,588			$	2,361,813
Securities available for sale (at fair value)			728,161				762,086				601,541
Securities held for investment (at amortized cost)			209,047				214,777				176,724
Net loans			2,080,119				1,918,608				1,373,511
Deposits			2,742,296				2,605,177				1,808,550
Total shareholders' equity			350,280				326,856				235,955
Average Balances (Year-to-Date)
Total average assets		$	3,250,855			$	3,188,334			$	2,299,291
Less: intangible assets			32,879				31,707				428
Total average tangible assets		$	3,217,976			$	3,156,627			$	2,298,863
Total average equity		$	331,966			$	323,359			$	235,837
Less: intangible assets			32,879				31,707				428
Total average tangible equity		$	299,087			$	291,652			$	235,409
Credit Analysis
Net charge-offs (recoveries) year-to-date - non-acquired loans		$	(854	)		$	(621	)		$	(1,107	)
Net charge-offs year-to-date - acquired loans			872				189				-
Total net charge-offs (recoveries) year-to-date		$	18			$	(432	)		$	(1,107	)
Net charge-offs (recoveries) to average loans (annualized) - non-acquired loans			(0.06	)%			(0.07	)%			(0.11	)%
Net charge-offs to average loans (annualized) - acquired loans			0.06				0.02				-
Total net charge-offs (recoveries) to average loans (annualized)			0.00				(0.05	)			(0.11	)
Loan loss provision (recapture) year-to-date - non-acquired loans		$	1,415			$	563			$	(3,604	)
Loan loss provision year-to-date - acquired loans			860				725				-
Total loan loss provision (recapture) year-to-date		$	2,275			$	1,288			$	(3,604	)
Allowance to loans at end of period - non-acquired loans			1.11	%			1.10	%			1.26	%
Discount to acquired loans at end of period			4.13				3.32				-
Nonperforming loans - non-acquired loans		$	14,474			$	15,054			$	18,942
Nonperforming loans - acquired loans			2,636				4,543				-
Other real estate owned - non-acquired			4,183				4,855				5,018
Other real estate owned - acquired			3,250				1,053				-
Total nonperforming assets		$	24,543			$	25,505			$	23,960
Restructured loans (accruing)		$	20,543			$	23,441			$	28,969
Purchased noncredit impaired loans		$	347,262			$	275,964			$	-
Purchased credit impaired loans			12,673				6,562				-
Total acquired loans		$	359,935			$	282,526			$	-
Nonperforming loans to loans at end of period - non-acquired loans			0.69	%			0.78	%			1.36	%
Nonperforming loans to loans at end of period - acquired loans			0.12				0.23				-
Total nonperforming loans to loans at end of period			0.81				1.01				1.36
Nonperforming assets to total assets - non-acquired			0.55	%			0.62	%			1.01	%
Nonperforming assets to total assets - acquired			0.18				0.17				-
Total nonperforming assets to total assets			0.73				0.79				1.01

 

  

CONDENSED CONSOLIDATED STATEMENTS OF INCOME	(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

 

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
(Dollars in thousands, except per share data)		2015				2014				2015				2014
Interest on securities:
Taxable		$	5,154			$	3,657			$	15,029			$	10,720
Nontaxable			144				8				441				29
Interest and fees on loans			25,276				14,615				69,285				42,516
Interest on federal funds sold and other investments			249				211				747				725
Total Interest Income			30,823				18,491				85,502				53,990
Interest on deposits			562				189				1,487				567
Interest on time certificates			295				370				963				1,163
Interest on borrowed money			955				704				2,665				2,086
Total Interest Expense			1,812				1,263				5,115				3,816
Net Interest Income			29,011				17,228				80,387				50,174
Provision (recapture) for loan losses			987				(1,425	)			2,275				(3,604	)
Net Interest Income After Provision for Loan Losses			28,024				18,653				78,112				53,778
Noninterest income:
Service charges on deposit accounts			2,217				1,753				6,334				4,744
Trust fees			781				817				2,341				2,191
Mortgage banking fees			1,177				825				3,297				2,341
Brokerage commissions and fees			604				408				1,621				1,197
Marine finance fees			258				281				947				875
Interchange income			1,925				1,452				5,695				4,369
Other deposit based EFT fees			88				70				298				251
BOLI income			366				0				1,030				0
Gain on participated loan			0				0				725				0
Other			666				543				1,948				1,635
			8,082				6,149				24,236				17,603
Securities gains, net			160				344				160				361
Total Noninterest Income			8,242				6,493				24,396				17,964
Noninterest expenses:
Salaries and wages			11,850				8,064				29,940				23,456
Employee benefits			2,430				2,049				7,386				6,312
Outsourced data processing costs			3,277				1,769				7,695				5,275
Telephone / data lines			446				313				1,385				912
Occupancy			2,396				1,879				6,430				5,605
Furniture and equipment			883				628				2,434				1,803
Marketing			1,099				925				3,300				2,413
Legal and professional fees			2,189				1,103				5,442				4,316
FDIC assessments			552				387				1,661				1,184
Amortization of intangibles			397				195				1,027				587
Asset dispositions expense			77				139				393				385
Net loss on other real estate owned and repossessed assets			262				156				396				301
Other			3,269				2,282				9,112				6,806
Total Noninterest Expenses			29,127				19,889				76,601				59,355
Income Before Income Taxes			7,139				5,257				25,907				12,387
Income taxes			2,698				2,261				9,802				5,174
Net Income		$	4,441			$	2,996			$	16,105			$	7,213
Per share of common stock:
Net income diluted		$	0.13			$	0.12			$	0.48			$	0.28
Net income basic			0.13				0.12				0.48				0.28
Cash dividends declared			0.00				0.00				0.00				0.00
Average diluted shares outstanding			34,193,540				26,025,693				33,524,718				25,894,881
Average basic shares outstanding			33,907,178				25,887,591				33,286,933				25,736,140

 

  

CONDENSED CONSOLIDATED STATEMENTS OF INCOME	(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

 

		QUARTER
		2015												2014
(Dollars in thousands)		Third				Second				First				Fourth				Third
Interest on securities:
Taxable		$	5,154			$	4,977			$	4,898			$	4,728			$	3,657
Nontaxable			144				147				150				182				8
Interest and fees on loans			25,276				21,988				22,021				21,070				14,615
Interest on federal funds sold and other investments			249				249				249				292				211
Total Interest Income			30,823				27,361				27,318				26,272				18,491
Interest on deposits			562				524				401				297				189
Interest on time certificates			295				321				347				375				370
Interest on borrowed money			955				850				860				867				704
Total Interest Expense			1,812				1,695				1,608				1,539				1,263
Net Interest Income			29,011				25,666				25,710				24,733				17,228
Provision (recapture) for loan losses			987				855				433				118				(1,425	)
Net Interest Income After Provision for Loan Losses			28,024				24,811				25,277				24,615				18,653
Noninterest income:
Service charges on deposit accounts			2,217				2,115				2,002				2,208				1,753
Trust fees			781				759				801				795				817
Mortgage banking fees			1,177				1,032				1,088				716				825
Brokerage commissions and fees			604				576				441				417				408
Marine finance fees			258				492				197				445				281
Interchange income			1,925				2,033				1,737				1,603				1,452
Other deposit based EFT fees			88				96				114				92				70
BOLI income			366				334				330				252				0
Gain on participated loan			0				725				0				0				0
Other			666				684				598				613				543
			8,082				8,846				7,308				7,141				6,149
Securities gains, net			160				0				0				108				344
Total Noninterest Income			8,242				8,846				7,308				7,249				6,493
Noninterest expenses:
Salaries and wages			11,850				9,301				8,789				11,676				8,064
Employee benefits			2,430				2,541				2,415				2,461				2,049
Outsourced data processing costs			3,277				2,234				2,184				3,506				1,769
Telephone / data lines			446				443				496				419				313
Occupancy			2,396				2,011				2,023				2,325				1,879
Furniture and equipment			883				819				732				732				628
Marketing			1,099				1,226				975				1,163				925
Legal and professional fees			2,189				1,590				1,663				2,555				1,103
FDIC assessments			552				520				589				476				387
Amortization of intangibles			397				315				315				446				195
Asset dispositions expense			77				173				143				103				139
Branch closures and branding			0				0				0				4,958				0
Net loss on other real estate owned and repossessed assets			262				53				81				9				156
Other			3,269				3,062				2,781				3,182				2,282
Total Noninterest Expenses			29,127				24,288				23,186				34,011				19,889
Income Before Income Taxes			7,139				9,369				9,399				(2,147	)			5,257
Income taxes			2,698				3,564				3,540				(630	)			2,261
Net Income		$	4,441			$	5,805			$	5,859			$	(1,517	)		$	2,996
Per share of common stock:
Net income diluted		$	0.13			$	0.18			$	0.18			$	(0.05	)		$	0.12
Net income basic			0.13				0.18				0.18				(0.05	)			0.12
Cash dividends declared			0.00				0.00				0.00				0.00				0.00
Average diluted shares outstanding			34,193,540				33,233,508				33,135,618				33,123,525				26,025,693
Average basic shares outstanding			33,907,178				32,978,006				32,971,444				32,888,612				25,887,591

 

  

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

 

		September 30,				December 31,				September 30,
(Dollars in thousands, except share data)		2015				2014				2014
Assets
Cash and due from banks		$	69,650			$	64,411			$	39,934
Interest bearing deposits with other banks			30,991				36,128				18,962
Total Cash and Cash Equivalents			100,641				100,539				58,896
Securities:
Available for sale (at fair value)			728,161				741,375				601,541
Held for investment (at amortized cost)			209,047				207,904				176,724
Total Securities			937,208				949,279				778,265
Loans available for sale			16,738				12,078				18,484
Loans, net of deferred costs			2,099,447				1,821,885				1,391,082
Less: Allowance for loan losses			(19,328	)			(17,071	)			(17,571	)
Net Loans			2,080,119				1,804,814				1,373,511
Bank premises and equipment, net			54,900				45,086				34,809
Other real estate owned			7,433				7,462				5,018
Other intangible assets			8,991				7,454				130
Goodwill			25,864				25,309				0
Bank owned life insurance			43,251				35,679				0
Other assets			102,963				105,635				92,700
		$	3,378,108			$	3,093,335			$	2,361,813
Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest demand		$	869,877			$	725,238			$	522,001
Interest-bearing demand			618,344				652,353				479,827
Savings			286,810				264,738				215,076
Money market			660,632				450,172				344,726
Other time certificates			163,028				173,247				138,595
Brokered time certificates			8,323				7,034				7,025
Time certificates of $100,000 or more			135,282				143,752				101,300
Total Deposits			2,742,296				2,416,534				1,808,550
Federal funds purchased and securities sold under agreements to repurchase, maturing within 30 days			148,607				233,640				204,436
Borrowed funds			50,000				50,000				50,000
Subordinated debt			69,891				64,583				53,610
Other liabilities			17,034				15,927				9,262
			3,027,828				2,780,684				2,125,858
Shareholders' Equity
Common stock			3,435				3,300				2,600
Additional paid in capital			398,067				379,249				302,346
Accumulated deficit			(48,894	)			(65,000	)			(63,482	)
Treasury stock			(38	)			(71	)			(216	)
			352,570				317,478				241,248
Accumulated other comprehensive (loss), net			(2,290	)			(4,827	)			(5,293	)
Total Shareholders' Equity			350,280				312,651				235,955
		$	3,378,108			$	3,093,335			$	2,361,813
Common Shares Outstanding			34,346,456				33,136,592				26,027,634

 

Note: The balance sheet at December 31, 2014 has been derived from the audited financial statements at that date.

 

  

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

 

		QUARTERS
		2015												2014
(Dollars in thousands, except per share data)		Third				Second				First				Fourth				Third
Net income (loss)		$	4,441			$	5,805			$	5,859			$	(1,517	)		$	2,996
Operating Ratios
Return on average assets-GAAP basis (2),(3)			0.52	%			0.72	%			0.75	%			(0.20	)%			0.52	%
Return on average tangible assets (2),(3),(4)			0.56				0.75				0.79				(0.16	)			0.54
Return on average shareholders' equity-GAAP basis (2),(3)			5.05				7.13				7.42				(1.89	)			4.97
Efficiency ratio (5)			76.29				68.57				68.33				104.46				82.78
Noninterest income to total revenue			21.79				25.63				22.13				22.40				26.30
Net interest margin (1),(2)			3.75				3.50				3.62				3.56				3.17
Average equity to average assets			10.34				10.12				10.17				10.51				10.37
Credit Analysis Excluding Acquired Loans
Net charge-offs (recoveries) - non-acquired loans		$	(233	)		$	(358	)		$	(263	)		$	618			$	(856	)
Net charge-offs - acquired loans			683				143				46				-				-
Total net charge-offs (recoveries)		$	450			$	(215	)		$	(217	)		$	618			$	(856	)
Net charge-offs (recoveries) to average loans - non-acquired loans			(0.04	)%			(0.08	)%			(0.06	)%			0.14	%			(0.25	)%
Net charge-offs (recoveries) to average loans - acquired loans			0.12				0.03				0.01				-				-
Total net charge-offs (recoveries) to average loans			0.08				(0.05	)			(0.05	)			0.14				(0.25	)
Loan loss provision (recapture) - non-acquired loans		$	852			$	271			$	292			$	54			$	(1,425	)
Loan loss provision (recapture) - acquired loans			135				584				141				64				-
Total loan loss provision (recapture)		$	987			$	855			$	433			$	118			$	(1,425	)
Allowance to loans at end of period - non-acquired loans			1.11	%			1.10	%			1.13	%			1.14	%			1.26	%
Discount for credit losses to acquired loans at end of period			4.13				3.32				3.56				3.56				-
Nonperforming loans - non-acquired loans		$	14,474			$	15,054			$	16,860			$	18,563			$	18,942
Nonperforming loans - acquired loans			2,636				4,543				4,196				2,577				-
Other real estate owned - non-acquired			4,183				4,855				4,738				5,567				5,018
Other real estate owned - acquired			3,250				1,053				1,431				1,895				-
Total nonperforming assets		$	24,543			$	25,505			$	27,225			$	28,602			$	23,960
Restructured loans (accruing)		$	20,543			$	23,441			$	23,847			$	24,997			$	28,969
Purchased noncredit impaired loans		$	347,262			$	275,964			$	296,839			$	326,066			$	-
Purchased credit impaired loans			12,673				6,562				7,119				7,814				-
Total acquired loans		$	359,935			$	282,526			$	303,958			$	333,880			$	-
Nonperforming loans to loans at end of period - non-acquired loans			0.69	%			0.78	%			0.91	%			1.02	%			1.36	%
Nonperforming loans to loans at end of period - acquired loans			0.12				0.23				0.23				0.14				-
Total nonperforming loans to loans at end of period			0.81				1.01				1.14				1.16				1.36
Nonperforming assets to total assets - non-acquired			0.55	%			0.62	%			0.67	%			0.78	%			1.01	%
Nonperforming assets to total assets - acquired			0.18				0.17				0.17				0.14				-
Total nonperforming assets to total assets			0.73				0.79				0.84				0.92				1.01
Per Share Common Stock
Net income (loss) diluted-GAAP basis		$	0.13			$	0.18			$	0.18			$	(0.05	)		$	0.12
Net income (loss) basic-GAAP basis			0.13				0.18				0.18				(0.05	)			0.12
Cash dividends declared			0.00				0.00				0.00				0.00				0.00
Book value per share common			10.20				9.84				9.71				9.44				9.07
Average Balances
Total average assets		$	3,373,858			$	3,225,127			$	3,151,132			$	3,037,061			$	2,305,799
Less: Intangible assets			35,185				32,188				31,221				33,803				237
Total average tangible assets		$	3,338,673			$	3,192,939			$	3,119,911			$	3,003,258			$	2,305,562
Total average equity		$	348,901			$	326,338			$	320,346			$	319,233			$	239,031
Less: Intangible assets			35,185				32,188				31,221				33,803				237
Total average tangible equity		$	313,716			$	294,150			$	289,125			$	285,430			$	238,794

 

(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)

Defined as (noninterest expense less foreclosed property expense and amortization of intangibles) divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains).

 

		September 30,				December 31,				September 30,
SECURITIES		2015				2014				2014
U.S. Treasury and U.S. Government Agencies		$	3,929			$	3,899			$	100
Mortgage-backed			488,803				587,933				473,681
Collateralized loan obligations			123,447				125,225				121,500
Obligations of states and political subdivisions			33,037				24,318				6,260
Corporates			32,155				0				0
CMBS			39,027				0				0
Other			7,763				0				0
Securities Available for Sale			728,161				741,375				601,541
Mortgage-backed			167,747				182,076				176,724
Collateralized loan obligations			41,300				25,828				0
Securities Held for Investment			209,047				207,904				176,724
Total Securities		$	937,208			$	949,279			$	778,265

 

		September 30,				December 31,				September 30,
LOANS		2015				2014				2014
Construction and land development		$	96,036			$	87,036			$	57,851
Real estate mortgage			1,714,120				1,524,044				1,193,924
Installment loans to individuals			78,472				52,897				47,645
Commercial and financial			210,335				157,396				91,300
Other loans			484				512				362
Total Loans		$	2,099,447			$	1,821,885			$	1,391,082

 

  

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

 

		2015																								2014
		Third Quarter												Second Quarter												Third Quarter
		Average								Yield/				Average								Yield/				Average								Yield/
(Dollars in thousands)		Balance				Interest				Rate				Balance				Interest				Rate				Balance				Interest				Rate
Assets
Earning assets:
Securities:
Taxable		$	966,764			$	5,154				2.13	%		$	957,374			$	4,977				2.08	%		$	698,274			$	3,656				2.09	%
Nontaxable			14,982				220				5.87				15,311				225				5.87				742				13				7.01
Total Securities			981,746				5,374				2.19				972,685				5,202				2.14				699,016				3,669				2.10
Federal funds sold and other investments			42,083				249				2.35				79,031				249				1.26				98,711				211				0.85
Loans, net			2,060,326				25,319				4.88				1,904,011				22,032				4.64				1,365,978				14,665				4.26
Total Earning Assets			3,084,155				30,942				3.98				2,955,727				27,483				3.73				2,163,705				18,545				3.40
Allowance for loan losses			(19,294	)											(18,247	)											(17,972	)
Cash and due from banks			70,292												71,858												44,172
Premises and equipment			54,436												49,275												34,717
Intangible assets			35,185												32,188												237
Bank owned life insurance			41,934												36,111												0
Other assets			107,150												98,215												80,940
		$	3,373,858											$	3,225,127											$	2,305,799
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand		$	621,365			$	116				0.07	%		$	612,433			$	110				0.07	%		$	489,138			$	91				0.07	%
Savings			285,410				39				0.05				279,354				41				0.06				212,479				24				0.04
Money market			637,840				407				0.25				607,271				373				0.25				339,937				74				0.09
Time deposits			308,184				295				0.38				303,802				321				0.42				252,179				370				0.58
Federal funds purchased and other short term borrowings			183,494				112				0.24				168,068				77				0.18				153,696				69				0.18
Other borrowings			118,961				843				2.81				114,649				773				2.70				103,610				635				2.43
Total Interest-Bearing Liabilities			2,155,254				1,812				0.33				2,085,577				1,695				0.33				1,551,039				1,263				0.32
Noninterest demand			849,468												795,707												506,478
Other liabilities			20,235												17,505												9,251
Total Liabilities			3,024,957												2,898,789												2,066,768
Shareholders' equity			348,901												326,338												239,031
		$	3,373,858											$	3,225,127											$	2,305,799
Interest expense as a % of earning assets											0.23	%											0.23	%											0.23	%
Net interest income as a % of earning assets						$	29,130				3.75	%						$	25,788				3.50	%						$	17,282				3.17	%

 

(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.

 

  

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

 

		2015												2014
(Dollars in thousands)		Third Quarter				Second Quarter				First Quarter				Fourth Quarter				Third Quarter
Customer Relationship Funding (Period End)
Noninterest demand
Commercial		$	619,960			$	561,742			$	546,876			$	481,327			$	301,630
Retail			182,381				180,484				191,262				190,120				162,392
Public funds			47,765				47,913				38,529				41,201				39,329
Other			19,771				18,290				16,669				12,590				18,650
			869,877				808,429				793,336				725,238				522,001
Interest-bearing demand
Commercial			69,037				60,411				66,532				58,173				41,131
Retail			443,022				410,601				416,766				407,653				324,690
Public funds			106,285				128,256				151,556				186,527				114,006
			618,344				599,268				634,854				652,353				479,827
Total transaction accounts
Commercial			688,997				622,153				613,408				539,500				342,761
Retail			625,403				591,085				608,028				597,773				487,082
Public funds			154,050				176,169				190,085				227,728				153,335
Other			19,771				18,290				16,669				12,590				18,650
			1,488,221				1,407,697				1,428,190				1,377,591				1,001,828
Savings			286,810				282,588				272,963				264,738				215,076
Money market
Commercial			225,629				191,061				185,668				172,417				118,385
Retail			306,138				272,853				274,203				264,725				218,376
Public funds			128,865				158,059				136,729				13,030				7,965
			660,632				621,973				596,600				450,172				344,726
Time certificates of deposit			306,633				292,919				312,072				324,033				246,920
Total Deposits		$	2,742,296			$	2,605,177			$	2,609,825			$	2,416,534			$	1,808,550
Customer sweep accounts		$	148,607			$	157,676			$	170,023			$	153,640			$	124,436
Total core customer funding (1)		$	2,584,270			$	2,469,934			$	2,467,776			$	2,246,141			$	1,686,066

 

(1)

Total deposits and customer sweep accounts, excluding certificates of deposits.