SEACOAST BANKING CORP OF FLORIDA - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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EX-99.2 - EXHIBIT 99.2 - SEACOAST BANKING CORP OF FLORIDA	v465525_ex99-2.htm
EX-99.3 - EXHIBIT 99.3 - SEACOAST BANKING CORP OF FLORIDA	v465525_ex99-3.htm
8-K - FORM 8-K - SEACOAST BANKING CORP OF FLORIDA	v465525_8k.htm

EXHIBIT 99.1

To Form 8-K dated April 28, 2017

Charles M. Shaffer

Executive Vice President

Chief Financial Officer

(772) 221-7003

Chuck.Shaffer@seacoastbank.com

SEACOAST REPORTS FIRST QUARTER 2017 RESULTS

Net Income Increased 100% Year-Over-Year to $7.9 Million; Net Revenue Increased 23% to $48.1 Million

Record Consumer and Small Business Loan Originations; Commercial Origination and Mortgage Loan Strength Continues

Company Updates FY2017 Guidance

STUART, Fla., April 25, 2017 /PRNewswire/ -- Seacoast Banking Corporation of Florida (“Seacoast” or “the Company”) (NASDAQ: SBCF) today reported net income of $7.9 million for the first quarter of 2017, a 100% or $4.0 million increase from the first quarter of 2016. The company reported first quarter adjusted net income¹ of $10.3 million, representing a 46% or $3.2 million increase year-over-year.

Dennis S. Hudson, III, Seacoast’s Chairman and CEO, said “We sustained our prior year momentum during the first quarter, with robust loan pipelines, interchange and household growth reaching record levels, as we continued initiatives to become more efficient as the year progresses.”

“We incurred certain expenses in the first quarter 2017, notably higher than the fourth quarter last year, that position us well for the balance of this fiscal year. We also successfully completed a public offering of 2.7 million shares during the first quarter, generating net proceeds of $55.7 million and situating us to sustain our strong organic growth and make selective acquisitions. On April 7, we closed the GulfShore Bank acquisition, extending our proven integration strategy into the attractive Tampa market.”

Notable Items Affecting First Quarter 2017 Results

Certain items during first quarter 2017, aggregating $3.6 million in noninterest expense, were significant in comparison to fourth quarter 2016, and position the Company for much stronger performance looking forward.

Return of seasonal 401(k) and payroll tax expense.

Restructured the executive team, with salary expense overlap and severance-related charges. This was largely complete by first quarter end.

Hired a commercial lending team, expected to be earnings accretive in fiscal year 2017.

Completed a reduction in force, resulting in severance expense during the first quarter.

Consolidated four branch locations, resulting in closure charges and severance in the first quarter, with anticipated benefits partially realized in the second quarter and more fully in the second half of 2017.

Guidance

The Company’s previous baseline adjusted diluted earnings per share guidance of $1.24 to $1.28 remains unchanged. The Company has updated its definition of adjusted net income to exclude the effect of the amortization of acquisition related intangibles. Updating its guidance for this new definition and the greater number of shares in issue following the Company’s capital raise, the Company has revised its 2017 expected adjusted diluted earnings per share guidance to $1.28 to $1.32.

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

Effective in the first quarter of 2017, adjusted net income and adjusted noninterest expense exclude the effect of amortization of acquisition-related intangibles. Prior periods have been revised to conform with the current period presentation.

First Quarter 2017 Financial Highlights

Income Statement

Net income was $7.9 million, or $0.20 per average common diluted share, compared to $0.28 for the prior quarter and $0.11 for the first quarter of 2016. Adjusted net income¹ was $10.3 million, or $0.26 per average common diluted share, compared to $0.31 for the prior quarter and $0.20 for the first quarter of 2016.

Net revenues were $48.1 million, an increase of $716 thousand, or 2%, compared to the prior quarter and an increase of $9.1 million, or 23% year-over-year. Adjusted revenues¹ were $48.1 million, an increase of $723 thousand, or 2%, from the prior quarter and an increase of $9.7 million, or 25% year-over-year.

Net interest income totaled $38.2 million in the first quarter of 2017, an increase of $740 thousand or 2% from the prior quarter. Compared to the prior year quarter, net interest income increased 26% or $7.9 million.

Noninterest income totaled $9.9 million for the first quarter of 2017, flat to the prior quarter and $1.2 million or 14% higher than the prior year quarter.

Net interest margin was 3.63% in the current quarter compared to 3.56% in the prior quarter and 3.68% in the prior year quarter.

The provision for loan losses increased from the prior quarter by $304 thousand and from the prior year quarter by $1.1 million to $1.3 million, as a result of growth in loans outstanding.

Noninterest expense increased $4.4 million sequentially and increased $2.4 million compared to the prior year quarter.

The current quarter included expenses of $2.6 million associated with consolidation activity in the retail branch network, the realignment of our executive team structure, and expenses associated with a reduction in workforce initiative. The earnings benefit from this work will be realized over the remainder of 2017. In addition, $1.3 million was included in the quarter for merger related charges and amortization of intangibles acquired through acquisitions.

Adjusted noninterest expense¹ was $30.9 million, an increase of $2.1 million, or 7%, compared to the prior quarter and $4.1 million, or 15%, compared to the prior year quarter. The increase quarter over quarter is primarily the result of seasonal expense associated with payroll taxes and incentive compensation accruals, the hiring of a commercial lending team during the quarter, and expenses associated with an investor relations event.

Seacoast recorded a $4.1 million income tax provision in the first quarter of 2017, compared to $5.3 million in the fourth quarter of 2016 and $2.4 million in the first quarter of 2016. The Company adopted ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” in the third quarter of 2016; as a result, benefits related to stock-based compensation were $234 thousand in the current quarter and $383 thousand in the prior quarter.

Revenues, excluding securities gains, increased 24% compared to prior year levels while adjusted noninterest expense¹ increased 15%, providing 9% operating leverage.

The efficiency ratio increased to 71.1% compared to 62.4% in the prior quarter and improved from 81.7% in the prior year quarter. The adjusted efficiency ratio¹ increased to 64.7% compared to 60.8% in the prior quarter and improved from 69.6% in the prior year quarter.

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

Balance Sheet

At March 31, 2017, the Company had total assets of $4.8 billion and total shareholders' equity of $502.5 million. Book value per share was $12.34 and tangible book value per share was $10.41, up $0.88 and $1.04, respectively from December 31, 2016.

Loan production continued at a strong pace across all business lines. Net loans totaled $2.95 billion at March 31, 2017, an increase of $93 million, or 3%, compared to December 31, 2016, and an increase of $514 million, or 21%, from year-ago levels. Excluding acquisitions, loans increased $456 million or 19% from year-ago levels. During the quarter, the Company purchased a residential adjustable mortgage pool, totaling $43 million.

Consumer and small business originations reached $90 million, a new record level, during the current quarter.

After recent record quarters, commercial originations remain strong at $95 million.

Closed residential loans retained during the quarter reached $78 million, reflecting continued strong performance.

Pipelines (loans in underwriting and approval or approved and not yet closed) remain strong at $123 million in commercial, $78 million in mortgage, and $44 million in consumer and small business.

Commercial pipelines increased $33.9 million, or 38%, over prior quarter and $24.8 million, or 25%, over year-ago levels.

Mortgage pipelines increased $5.7 million, or 8%, over prior quarter and $20.6 million, or 36%, from year-ago levels.

Consumer and small business declined from prior quarter by $1.4 million, or 3%, and increased from year-ago levels by $12.2 million, or 38%.

Total deposits were $3.7 billion as of March 31, 2017, an increase of $155 million, or 4%, compared to prior quarter and an increase of $456 million, or 14%, from the first quarter 2016.

Deposit growth reflects our success in growing households both organically and through acquisitions. Since March 31, 2016, interest bearing deposits (interest bearing demand, savings and money markets deposits) increased $249 million, or 14%, to $2.1 billion, noninterest bearing demand deposits increased $171 million, or 16%, to $1.2 billion, and CDs increased $36 million, or 10%, to $398 million. Excluding acquired deposits, noninterest bearing deposits increased 7% and total deposits increased 3% compared to March 31, 2016.

The Company’s balance sheet continues to be primarily core deposit funded. Core customer funding increased to $3.5 billion at March 31, 2017, a 3% increase from December 31, 2016 and a 13% increase from March 31, 2016. Excluding acquisitions, core customer funding increased by $149 million, or 5%, from one year ago.

Seacoast’s overall cost of deposits is 0.14%, in line with the prior quarter and 0.13% in the prior year quarter, reflecting the significant value of the deposit franchise.

First quarter return on average assets (ROA) was 0.68%, compared to 0.94% in the prior quarter and 0.44% in the prior year quarter. Return on average tangible assets (ROTA) was 0.74%, compared to 1.00% in the prior quarter and 0.48% in the prior year quarter. Adjusted ROTA¹ was 0.90% compared to 1.05% in the prior quarter and 0.80% in the prior year quarter.

Capital

Completed a successful public offering of 2.7 million shares of common stock on February 21, 2017, generating net proceeds of $55.7 million.

The common equity tier 1 capital ratio (CET1) was 12.3%, total capital ratio was 14.9% and the tier 1 leverage ratio was 10.3% at March 31, 2017.

Tangible common equity to tangible assets was 9.0% at March 31, 2017.

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

Asset Quality

Nonperforming loans to total loans outstanding at March 31, 2017 decreased to 0.57% from 0.62% at December 31, 2016 and from 0.63% as of March 31, 2016.

Nonperforming assets to total assets declined to 0.52% at March 31, 2017, compared to 0.60% at December 31, 2016 and 0.59% one year ago. Of the $25 million in nonperforming assets, $4 million relates to six closed branch properties held as REO.

The ratio of allowance for loan losses to non-acquisition related loans was 0.95% at March 31, 2017, 0.96% at December 31, 2016, and 1.04% at March 31, 2016.

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

FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)	1Q17			4Q16			3Q16			2Q16			1Q16

Selected Balance Sheet Data (at period end):
Total Assets	$	4,769,775		$	4,680,932		$	4,513,934		$	4,381,204		$	4,001,323
Gross Loans		2,973,759			2,879,536			2,769,338			2,616,052			2,455,214
Total Deposits		3,678,645			3,523,245			3,510,493			3,501,316			3,222,447

Performance Measures:
Net Income	$	7,926		$	10,771		$	9,133		$	5,332		$	3,966
Net Interest Margin		3.63	%		3.56	%		3.69	%		3.63	%		3.68	%
Average Diluted Shares Outstanding (000)		39,499			38,252			38,170			38,142			35,453
Diluted Earnings Per Share (EPS)	$	0.20		$	0.28		$	0.24		$	0.14		$	0.11
Return on (annualized):
Average Assets (ROA)		0.68	%		0.94	%		0.82	%		0.51	%		0.44	%
Average Tangible Assets (ROTA)		0.74			1.00			0.88			0.56			0.48
Average Tangible Common Equity (ROTCE)		8.77			12.51			10.91			6.62			5.13
Efficiency Ratio		71.08			62.36			68.60			78.01			81.73

Adjusted Operating Measures¹:
Adjusted Net Income	$	10,270		$	11,803		$	11,060		$	9,156		$	7,049
Adjusted Diluted EPS		0.26			0.31			0.29			0.24			0.20
Adjusted ROTA		0.90	%		1.05	%		1.01	%		0.89	%		0.80	%
Adjusted ROTCE		10.74			13.14			12.56			10.60			8.49
Adjusted Efficiency Ratio		64.65			60.84			63.14			64.78			69.64
Adjusted Noninterest Expenses as a Percentage of Average Tangible Assets		2.71			2.56			2.76			2.76			3.03

Other Data
Market Capitalization	$	976,933		$	838,762		$	611,824		$	617,007		$	597,275
Full Time Equivalent Employees		743			725			731			784			728
Number of ATMs		76			77			80			85			71
Full Service Banking Offices		46			47			47			57			53
Registered Online Users		71,385			67,243			66,115			61,634			55,914
Registered Mobile Users		50,729			47,131			44,128			38,619			35,098

First Quarter 2017 Strategic Highlights

Modernizing How We Sell

New households served grew by a record 1,416 new households in March. This was achieved despite having fewer branches and fewer FTEs in the retail business unit.

Consumer loans closed remotely increased to 33%, from 0% one year prior.

Consumer and small business loans originated in digital channels or by our call center grew by 38%. These are the fastest growing channels as our customers migrate to these channels for convenience.

Invested $200 thousand in hiring a commercial banking team, to be headquartered in Tampa, Florida with nationwide distribution, primarily serving lower middle market commercial and industrial business relationships.

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

Lowering Our Cost to Serve

Closing four locations in the first half of 2017. Costs associated with branch closures in the current quarter were $515 thousand. This consolidation effort is expected to lower operating expenses by $2.0 million on an annual basis.

Customers continue to move to more convenient digital channels, and we still expect non-teller transactions to surpass teller transactions by this summer.

Initiated a reduction in workforce initiative during the first quarter, in line with our focus on efficiency.

Driving Improvements in How Our Business Operates

Last June, we launched our online mortgage portal, where customers can apply online, upload documents, and track where they are in the process. In the first quarter, 51% of customers who closed a loan utilized the portal. Customer adoption has exceeded our expectations and the online portal continues to improve both our customers’ experience and our lenders’ efficiency. Our goal by 2020 is to replicate this across our other major product platforms.

In the current quarter, we opened a new call center in the Orlando area to support our growth strategy. This new location supports our 24/7 customer service model, provides us with access to a larger talent pool, and helps us strengthen our business continuity plan.

In the current quarter, we invested $127 thousand in relocating our secondary data center to a managed service provider environment creating reliability and scalability to support the growth of the organization.

Scaling and Evolving Our Culture

In January 2017, we announced key leadership changes to drive our growth strategy. Charles M. (Chuck) Shaffer was appointed CFO and head of strategy, Julie Kleffel, who has headed small-business banking for the past two years, will succeed Shaffer as EVP, Community Banking, Jeffery (Jeff) Bray was appointed EVP of Service and Operations and Joe Forlenza joined us as EVP, Chief Audit Executive. We also welcomed Al Monserrat, CEO of RES Software, a leading digital workspace technology company, to the Seacoast board of directors.

On April 7^th, we completed our acquisition of GulfShore Bank, adding Joe Caballero as EVP, Tampa Market President, anchoring Seacoast in one of the most attractive markets in Florida.

OTHER INFORMATION

Conference Call Information

Seacoast will host a conference call on Wednesday, April 26, 2017 at 10:00 a.m. (Eastern Time) to discuss the earnings results. Investors may call in (toll-free) by dialing (800) 774-6070 (passcode: 7756 381). 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 April 26, by dialing (888) 843-7419 and using passcode: 7756 381.

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 April 26, 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.

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

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 $4.8 billion in assets and $3.7 billion in deposits as of March 31, 2017. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, 46 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 Daytona Beach area, into Orlando and Central Florida, and west to Okeechobee and surrounding counties. More information about the Company is available at SeacoastBanking.com.

Cautionary Notice Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, cost savings, enhanced revenues, economic and seasonal conditions in our markets, and improvements to reported earnings that may be realized from cost controls and for integration of banks that we have acquired, or expect to acquire, 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, 2016, 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

(Dollars in thousands, except per share data)	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2017			2016			2016			2016			2016
Summary of Earnings
Net income	$	7,926		$	10,771		$	9,133		$	5,332		$	3,966
Net interest income (1)		38,377			37,628			37,735			34,801			30,349
Net interest margin (1), (2)		3.63	%		3.56	%		3.69	%		3.63	%		3.68	%
														.
Performance Ratios
Return on average assets-GAAP basis (2)		0.68	%		0.94	%		0.82	%		0.51	%		0.44	%
Return on average tangible assets (2),(3)		0.74			1.00			0.88			0.56			0.48
Adjusted return on average tangible assets (2), (3), (5)		0.90			1.05			1.01			0.89			0.80

Return on average shareholders' equity-GAAP basis (2)		6.89			9.80			8.44			5.15			4.30
Return on average tangible shareholders' equity-GAAP basis (2),(3)		8.77			12.51			10.91			6.62			5.13
Adjusted return on average tangible common equity (2), (3), (5)		10.74			13.14			12.56			10.60			8.49
Efficiency ratio (4)		71.08			62.36			68.60			78.01			81.73
Adjusted efficiency ratio (5)		64.65			60.84			63.14			64.78			69.64
Noninterest income to total revenue		20.61			20.96			20.68			20.89			22.21
Average equity to average assets		9.93			9.56			9.74			9.91			10.30

Per Share Data
Net income diluted-GAAP basis	$	0.20		$	0.28		$	0.24		$	0.14		$	0.11
Net income basic-GAAP basis		0.20			0.29			0.24			0.14			0.11
Adjusted earnings (5)		0.26			0.31			0.29			0.24			0.20

Book value per share common		12.34			11.45			11.45			11.20			10.91
Tangible book value per share		10.41			9.37			9.35			9.08			9.17
Cash dividends declared		0.00			0.00			0.00			0.00			0.00

Other Data
Market capitalization (6)		976,368			838,762			611,824			617,007			597,275
Full-time equivalent employees		743			725			731			784			728
Number of ATMs		76			77			80			85			71
Full service banking offices		46			47			47			57			53
Registered online users		71,385			67,243			66,115			61,634			55,914
Registered mobile devices		50,729			47,131			44,128			38,619			35,098

(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 Company defines average tangible assets as total assets less intangible assets, and tangible common equity as total shareholder's equity less intangible assets.

(4)

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).

(5)

Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures."

(6)

Common shares outstanding multiplied by closing bid price on last day of each period.

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

	QUARTER
	2017			2016
(Dollars in thousands, except share and per share data)	First			Fourth			Third			Second			First

Interest on securities:
Taxable	$	8,087		$	6,880		$	6,966		$	6,603		$	5,683
Nontaxable		287			287			287			299			164
Interest and fees on loans		31,891			32,007			31,932			29,244			26,034
Interest on federal funds sold and other investments		510			517			429			433			290
Total Interest Income		40,775			39,691			39,614			36,579			32,171

Interest on deposits		624			622			679			688			604
Interest on time certificates		566			598			613			550			313
Interest on borrowed money		1,420			1,046			874			848			1,032
Total Interest Expense		2,610			2,266			2,166			2,086			1,949

Net Interest Income		38,165			37,425			37,448			34,493			30,222
Provision for loan losses		1,304			1,000			550			662			199
Net Interest Income After Provision for Loan Losses		36,861			36,425			36,898			33,831			30,023

Noninterest income:
Service charges on deposit accounts		2,422			2,612			2,698			2,230			2,129
Trust fees		880			969			820			838			806
Mortgage banking fees		1,552			1,616			1,885			1,364			999
Brokerage commissions and fees		377			480			463			470			631
Marine finance fees		134			115			138			279			141
Interchange income		2,494			2,334			2,306			2,370			2,217
Other deposit based EFT fees		140			125			109			116			127
BOLI income		733			611			382			379			841
Other		1,173			1,060			963			1,065			739
		9,905			9,922			9,764			9,111			8,630
Securities gains, net		0			7			225			47			89
Total Noninterest Income		9,905			9,929			9,989			9,158			8,719

Noninterest expenses:
Salaries and wages		15,369			12,476			14,337			13,884			13,399
Employee benefits		3,068			2,475			2,425			2,521			2,482
Outsourced data processing costs		3,269			3,076			3,198			2,803			4,439
Telephone / data lines		532			502			539			539			528
Occupancy		3,157			2,830			3,675			3,645			2,972
Furniture and equipment		1,391			1,211			1,228			1,283			998
Marketing		922			847			780			957			1,049
Legal and professional fees		2,132			2,370			2,213			2,656			2,357
FDIC assessments		570			661			517			643			544
Amortization of intangibles		719			719			728			593			446
Asset dispositions expense		53			84			219			160			90
Net gain on other real estate owned and repossessed assets		(346	)		(161	)		(96	)		(201	)		(51	)
Early redemption cost for Federal Home Loan Bank advances		0			0			0			1,777			0
Other		3,910			3,207			3,672			3,548			3,088
Total Noninterest Expenses		34,746			30,297			33,435			34,808			32,341

Income Before Income Taxes		12,020			16,057			13,452			8,181			6,401
Income taxes		4,094			5,286			4,319			2,849			2,435

Net Income	$	7,926		$	10,771		$	9,133		$	5,332		$	3,966

Per share of common stock:

Net income diluted	$	0.20		$	0.28		$	0.24		$	0.14		$	0.11
Net income basic		0.20			0.29			0.24			0.14			0.11
Cash dividends declared		0.00			0.00			0.00			0.00			0.00

Average diluted shares outstanding		39,498,836			38,252,351			38,169,863			38,141,550			35,452,968
Average basic shares outstanding		38,839,285			37,603,789			37,549,804			37,470,071			34,848,875

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

	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands, except share data)	2017			2016			2016			2016			2016

Assets
Cash and due from banks	$	133,923		$	82,520		$	89,777		$	113,028		$	113,178
Interest bearing deposits with other banks		10,914			27,124			77,606			13,774			35,450
Total Cash and Cash Equivalents		144,837			109,644			167,383			126,802			148,628

Securities:
Available for sale (at fair value)		909,275			950,503			866,613			923,560			905,182
Held to maturity (at amortized cost)		379,657			372,498			392,138			401,570			198,231
Total Securities		1,288,932			1,323,001			1,258,751			1,325,130			1,103,413

Loans held for sale		16,326			15,332			20,143			20,075			19,867

Loans		2,973,759			2,879,536			2,769,338			2,616,052			2,455,214
Less: Allowance for loan losses		(24,562	)		(23,400	)		(22,684	)		(20,725	)		(19,724	)
Net Loans		2,949,197			2,856,136			2,746,654			2,595,327			2,435,490

Bank premises and equipment, net		58,611			58,684			59,035			63,817			61,416
Other real estate owned		7,885			9,949			12,734			8,694			8,091
Goodwill		64,649			64,649			64,649			64,123			55,196
Other intangible assets, net		13,853			14,572			15,291			16,154			11,524
Bank owned life insurance		85,237			84,580			44,044			43,729			43,417
Net deferred tax assets		55,834			60,818			58,848			62,648			67,049
Other assets		84,414			83,567			66,402			54,705			47,232
Total Assets	$	4,769,775		$	4,680,932		$	4,513,934		$	4,381,204		$	4,001,323

Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest demand	$	1,225,124		$	1,148,309		$	1,168,542		$	1,146,792		$	1,054,069
Interest-bearing demand		870,457			873,727			776,480			776,388			750,904
Savings		363,140			346,662			340,899			330,928			313,179
Money market		821,606			802,697			858,931			860,930			741,657
Other time certificates		153,840			159,887			166,987			172,816			164,388
Brokered time certificates		66,741			7,342			8,218			9,216			11,062
Time certificates of $100,000 or more		177,737			184,621			190,436			204,246			187,188
Total Deposits		3,678,645			3,523,245			3,510,493			3,501,316			3,222,447

Securities sold under agreements to repurchase		183,107			204,202			167,693			183,387			198,330
Federal Home Loan Bank borrowings		302,000			415,000			305,000			151,000			50,000
Subordinated debt		70,311			70,241			70,171			70,101			70,031
Other liabilities		33,218			32,847			25,058			49,971			46,727
Total Liabilities		4,267,281			4,245,535			4,078,415			3,955,775			3,587,535

Shareholders' Equity
Preferred stock - CBF Subsidiary REIT								0			0			0
Common stock		4,075			3,802			3,799			3,799			3,792
Additional paid in capital		510,806			454,001			453,007			451,542			450,389
Accumulated deficit		(5,731	)		(13,657	)		(24,427	)		(33,560	)		(38,892	)
Treasury stock		(1,172	)		(1,236	)		(691	)		(482	)		(88	)
		507,978			442,910			431,688			421,299			415,201
Accumulated other comprehensive loss, net		(5,484	)		(7,513	)		3,831			4,130			(1,413	)
Total Shareholders' Equity		502,494			435,397			435,519			425,429			413,788
Total Liabilities & Shareholders' Equity	$	4,769,775		$	4,680,932		$	4,513,934		$	4,381,204		$	4,001,323

Common Shares Outstanding		40,715,938			38,021,835			38,025,020			37,993,013			37,922,250

Note: The balance sheet at December 31, 2016 has been derived from the audited financial statements at that date.

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

	QUARTERS
	2017			2016
(Dollars in thousands)	First			Fourth			Third			Second			First

Credit Analysis
Net charge-offs (recoveries) - non-acquired loans	$	260		$	142		$	(1,328	)	$	(315	)	$	(539	)
Net charge-offs (recoveries) - acquired loans		(118	)		141			(81	)		(24	)		142
Total net charge-offs (recoveries)	$	142		$	283		$	(1,409	)	$	(339	)	$	(397	)

Net charge-offs (recoveries) to average loans - non-acquired loans		0.04	%		0.02	%		(0.20	)%		(0.05	)%		(0.10	)%
Net charge-offs to average loans - acquired loans		(0.02	)		0.02			(0.01	)		0.00			0.03
Total net charge-offs (recoveries) to average loans		0.02			0.04			(0.21	)		(0.05	)		(0.07	)

Loan loss provision (recapture) - non-acquired loans	$	1,504		$	1,161		$	649		$	423		$	(20	)
Loan loss provision (recapture) - acquired loans		(200	)		(161	)		(99	)		239			219
Total loan loss provision	$	1,304		$	1,000		$	550		$	662		$	199

Allowance for loan losses - non-acquired loans	$	24,487		$	23,243		$	22,225		$	20,248		$	19,510
Allowance for loan losses - acquired loans		75			157			459			477			214
Total allowance for loan losses	$	24,562		$	23,400		$	22,684		$	20,725		$	19,724

Non-acquired loans at end of period	$	2,572,549		$	2,425,850		$	2,272,276		$	2,047,881		$	1,880,421
Purchased noncredit impaired loans at end of period		388,229			440,690			484,006			554,519			558,262
Purchased credit impaired loans at end of period		12,981			12,996			13,057			13,652			16,531
Total loans	$	2,973,759		$	2,879,536		$	2,769,339		$	2,616,052		$	2,455,214

Non-acquired loans allowance for loan losses to non-acquired loans at end of period		0.95	%		0.96	%		0.98	%		0.99	%		1.04	%
Acquired loans allowance for loan losses to acquired loans at end of period		0.02			0.03			0.09			0.08			0.04
Purchase discount to acquired loans at end of period		4.25			4.18			4.24			3.96			3.79

End of Period
Nonperforming loans - non-acquired loans	$	10,557		$	11,023		$	10,561		$	10,919		$	11,881
Nonperforming loans - acquired loans		6,428			7,048			7,876			4,360			3,707
Other real estate owned - non-acquired		2,790			3,041			3,681			3,791			5,042
Other real estate owned - acquired		1,203			1,203			1,468			1,644			2,415
Bank branches closed included in other real estate owned		3,892			5,705			7,585			3,259			634
Total nonperforming assets	$	24,870		$	28,020		$	31,171		$	23,973		$	23,679

Restructured loans (accruing)	$	18,125		$	17,711		$	19,272		$	20,337		$	19,956

Nonperforming loans to loans at end of period - non-acquired loans		0.36	%		0.38	%		0.38	%		0.42	%		0.48	%
Nonperforming loans to loans at end of period - acquired loans		0.22			0.24			0.28			0.16			0.15
Total nonperforming loans to loans at end of period		0.57			0.62			0.66			0.58			0.63

Nonperforming assets to total assets - non-acquired		0.36	%		0.42	%		0.48	%		0.41	%		0.44	%
Nonperforming assets to total assets - acquired		0.16			0.18			0.21			0.14			0.15
Total nonperforming assets to total assets		0.52			0.60			0.69			0.55			0.59

Average Balances
Total average assets	$	4,699,745		$	4,572,188		$	4,420,438		$	4,206,800		$	3,601,381
Less: Intangible assets		78,878			79,620			80,068			69,449			37,006
Total average tangible assets	$	4,620,867		$	4,492,568		$	4,340,370		$	4,137,351		$	3,564,375

Total average equity	$	466,847		$	437,077		$	430,410		$	416,748		$	370,816
Less: Intangible assets		78,878			79,620			80,068			69,449			37,006
Total average tangible equity	$	387,969		$	357,457		$	350,342		$	347,299		$	333,810

		March 31,			December 31,			September 30,			June 30,			March 31,
LOANS		2017			2016			2016			2016			2016

Construction and land development	$	174,991		$	160,116		$	153,901		$	142,387		$	147,594
Commercial real estate		1,349,883			1,357,592			1,293,512			1,239,508			1,171,356
Residential real estate		893,675			836,787			833,413			794,321			762,838
Installment loans to individuals		165,040			153,945			145,523			115,513			95,183
Commercial and financial		389,445			370,589			342,501			323,466			277,775
Other loans		725			507			489			857			468
Total Loans	$	2,973,759		$	2,879,536		$	2,769,339		$	2,616,052		$	2,455,214

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

	March 31,		December 31,		September 30,		June 30,		March 31,
(Dollars in thousands)	2017		2016		2016		2016		2016

Customer Relationship Funding
Noninterest demand
Commercial	$	916,940	$	860,449	$	892,876	$	860,953	$	768,890
Retail		234,109		220,134		209,351		211,722		212,367
Public funds		52,126		48,690		42,147		44,275		52,244
Other		21,949		19,036		24,168		29,842		20,568
		1,225,124		1,148,309		1,168,542		1,146,792		1,054,069

Interest-bearing demand
Commercial		117,629		102,320		100,824		102,105		101,767
Retail		613,121		591,808		567,286		549,301		496,846
Public funds		139,707		179,599		108,370		124,982		152,291
		870,457		873,727		776,480		776,388		750,904

Total transaction accounts
Commercial		1,034,569		962,769		993,700		963,058		870,657
Retail		847,230		811,942		776,637		761,023		709,213
Public funds		191,833		228,289		150,517		169,257		204,535
Other		21,949		19,036		24,168		29,842		20,568
		2,095,581		2,022,036		1,945,022		1,923,180		1,804,973

Savings		363,140		346,662		340,899		330,928		313,179

Money market
Commercial		313,094		286,879		313,200		293,724		271,567
Retail		414,886		411,696		411,550		419,821		380,233
Public funds		93,626		104,122		134,181		147,385		89,857
		821,606		802,697		858,931		860,930		741,657

Time certificates of deposit		398,318		351,850		365,641		386,278		362,638
Total Deposits	$	3,678,645	$	3,523,245	$	3,510,493	$	3,501,316	$	3,222,447

Customer sweep accounts	$	183,107	$	204,202	$	167,693	$	183,387	$	198,330

Total core customer funding (1)	$	3,463,434	$	3,375,597	$	3,312,545	$	3,298,425	$	3,058,139

(1)

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

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

	2017							2016
		First Quarter							Fourth Quarter							First Quarter
		Average				Yield/			Average				Yield/			Average				Yield/
(Dollars in thousands)		Balance			Interest	Rate			Balance			Interest	Rate			Balance			Interest	Rate
Assets
Earning assets:
Securities:
Taxable	$	1,279,246		$	8,087	2.53	%	$	1,251,015		$	6,880	2.20	%	$	996,301		$	5,683	2.28	%
Nontaxable		27,833			441	6.34			28,589			441	6.17			17,929			251	5.60
Total Securities		1,307,080			8,528	2.61			1,279,604			7,321	2.29			1,014,230			5,934	2.34

Federal funds sold and other
investments		56,771			510	3.64			90,437			517	2.28			52,213			290	2.23

Loans, net		2,918,665			31,949	4.44			2,833,895			32,056	4.50			2,246,773			26,074	4.67

Total Earning Assets		4,282,515			40,987	3.88			4,203,936			39,894	3.78			3,313,216			32,298	3.92

Allowance for loan losses		(24,036	)						(22,819	)						(19,558	)
Cash and due from banks		105,803							90,082							81,947
Premises and equipment		58,783							59,108							57,062
Intangible assets		78,878							79,620							37,006
Bank owned life insurance		84,811							48,954							43,647
Other assets		112,994							113,307							88,061

Total Assets	$	4,699,745						$	4,572,188						$	3,601,381

Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand	$	834,244		$	163	0.08	%	$	812,056		$	149	0.07	%	$	710,083		$	155	0.09	%
Savings		353,452			44	0.05			343,753			44	0.05			303,207			37	0.05
Money market		803,795			417	0.21			824,440			429	0.21			667,466			412	0.25
Time deposits		347,143			566	0.66			360,712			598	0.66			304,401			313	0.41
Federal funds purchased and
securities sold under agreements to repurchase		181,102			153	0.34			184,612			110	0.24			185,728			127	0.28
Federal Home Loan Bank borrowings		426,144			702	0.67			339,457			392	0.46			57,308			409	2.87
Other borrowings		70,273			565	3.26			70,197			544	3.08			69,987			496	2.85

Total Interest-Bearing Liabilities		3,016,153			2,610	0.35			2,935,227			2,266	0.31			2,298,180			1,949	0.34

Noninterest demand		1,183,813							1,167,687							906,231
Other liabilities		32,932							32,197							26,154
Total Liabilities		4,232,898							4,135,111							3,230,565

Shareholders' equity		466,847							437,077							370,816

Total Liabilities & Equity	$	4,699,745						$	4,572,188						$	3,601,381

Interest expense as a % of earning assets						0.25	%						0.21	%						0.24	%
Net interest income as a % of earning assets				$	38,377	3.63	%				$	37,628	3.56	%				$	30,349	3.68	%

(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.

Explanation of Certain Unaudited Non-GAAP Financial Measures

This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). 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 and if not provided would be requested by the investor community. 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.

Effective in the first quarter of 2017, adjusted net income and adjusted noninterest expense exclude the effect of amortization of acquisition-related intangibles. Prior periods have been revised to conform with the current period presentation.

RECONCILIATION OF NON-GAAP MEASURES

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

(Dollars in thousands except per share data)	First Quarter 2017			Fourth Quarter 2016			Third Quarter 2016			Second Quarter 2016			First Quarter 2016
Net income	$	7,926		$	10,771		$	9,133		$	5,332		$	3,966
BOLI income (benefits upon death)		0			0			0			0			(464	)
Security gains		0			(7	)		(225	)		(47	)		(89	)
Total Adjustments to Revenue		0			(7	)		(225	)		(47	)		(553	)

Merger related charges		533			561			1,699			2,446			4,322
Amortization of intangibles		719			719			728			593			446
Branch reductions and other expense initiatives		2,572			163			894			1,587			713
Early redemption cost for FHLB advances		0			0			0			1,777			0
Total Adjustments to Noninterest Expense		3,824			1,443			3,321			6,403			5,481

Effective tax rate on adjustments		(1,480	)		(404	)		(1,168	)		(2,532	)		(1,845	)
Adjusted Net Income	$	10,270		$	11,803		$	11,061		$	9,156		$	7,049
Earnings per diluted share, as reported		0.20			0.28			0.24			0.14			0.11
Adjusted Earnings per Diluted Share		0.26			0.31			0.29			0.24			0.20
Average shares outstanding (000)		39,499			38,252			38,170			38,142			35,453

Revenue	$	48,070		$	47,354		$	47,437		$	43,651		$	38,941
Total Adjustments to Revenue		0			(7	)		(225	)		(47	)		(553	)
Adjusted Revenue		48,070			47,347			47,212			43,604			38,388

Noninterest Expense		34,746			30,297			33,435			34,808			32,341
Total Adjustments to Noninterest Expense		3,824			1,443			3,321			6,403			5,481
Adjusted Noninterest Expense		30,922			28,854			30,114			28,405			26,860

Adjusted Noninterest Expense		30,922			28,854			30,114			28,405			26,860
Foreclosed property expense and net (gain)/loss on sale		(293	)		(78	)		124			(41	)		38
Net Adjusted Noninterest Expense		31,215			28,932			29,990			28,446			26,822

Adjusted Revenue		48,070			47,347			47,212			43,604			38,388
Impact of FTE adjustment		211			204			287			308			127
Adjusted Revenue on a fully taxable equivalent basis		48,281			47,551			47,499			43,912			38,515
Adjusted Efficiency Ratio		64.7	%		60.8	%		63.1	%		64.8	%		69.6	%

Average Assets	$	4,699,745		$	4,572,188		$	4,420,438		$	4,206,800		$	3,601,390
Less average goodwill and intangible assets		(78,878	)		(79,620	)		(80,068	)		(69,449	)		(37,015	)
Average Tangible Assets		4,620,867			4,492,568			4,340,370			4,137,351			3,564,375

Return on Average Assets (ROA)		0.68	%		0.94	%		0.82	%		0.51	%		0.44	%
Impact of removing average intangible assets and related amortization		0.06	%		0.06	%		0.06	%		0.05	%		0.04	%
Return on Tangible Average Assets (ROTA)		0.74	%		1.00	%		0.88	%		0.56	%		0.48	%
Impact of other adjustments for Adjusted Net Income		0.16	%		0.05	%		0.13	%		0.33	%		0.32	%
Adjusted Return on Average Tangible Assets		0.90	%		1.05	%		1.01	%		0.89	%		0.80	%

Average Shareholders' Equity	$	466,846		$	437,077		$	430,410		$	416,748		$	370,816
Less average goodwill and intangible assets		(78,878	)		(79,620	)		(80,068	)		(69,449	)		(37,015	)
Average Tangible Equity		387,968			357,457			350,342			347,299			333,801

Return on Average Shareholders' Equity		6.9	%		9.8	%		8.4	%		5.1	%		4.3	%
Impact of removing average intangible assets and related amortization		1.9	%		2.7	%		2.5	%		1.5	%		0.8	%
Return on Average Tangible Common Equity (ROTCE)		8.8	%		12.5	%		10.9	%		6.6	%		5.1	%
Impact of other adjustments for Adjusted Net Income		1.9	%		0.6	%		1.7	%		4.0	%		3.4	%
Adjusted Return on Average Tangible Common Equity		10.7	%		13.1	%		12.6	%		10.6	%		8.5	%

SEACOAST BANKING CORP OF FLORIDA - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - April 28, 2017

Attached files

SEACOAST BANKING CORP OF FLORIDA Reports