EXHIBIT 99.1

To Form 8-K dated July 27, 2017

Charles M. Shaffer

Executive Vice President

Chief Financial Officer

(772) 221-7003

Chuck.Shaffer@seacoastbank.com

 

SEACOAST REPORTS SECOND QUARTER 2017 RESULTS

 

· Net Income Increased 44% Year-Over-Year to $7.7 Million; Net Revenue Increased 25% to $54.6 Million

 

· Expands into Highly Attractive Tampa MSA with Completion of GulfShore Acquisition

 

· Posts Another Record Quarter of Consumer and Small Business Originations

 

STUART, Fla., July 27, 2017 /PRNewswire/ — Seacoast Banking Corporation of Florida (“Seacoast” or “the Company”) (NASDAQ: SBCF) today reported net income of $7.7 million for the second quarter of 2017, a 44% or $2.3 million increase from the second quarter of 2016. Year to date net income as of June 30, 2017 was $15.6 million, a 68% or $6.3 million increase compared to the prior year period. The Company reported second quarter adjusted net income¹ of $12.7 million, representing a 38% or $3.5 million increase from the second quarter of 2016. Year to date adjusted net income¹ was $22.9 million, a 42% or $6.7 million increase compared to prior year to date results.

 

For the second quarter 2017, return on average tangible assets was 0.66%, return on average tangible shareholders’ equity was 7.25%, and the efficiency ratio was 73.90%, compared to 0.56%, 6.62%, and 78.01%, respectively, in the second quarter of 2016.  Adjusted return on average tangible assets¹ was 1.02%, adjusted return on average tangible shareholders’ equity¹ was 11.22%, and the adjusted efficiency ratio¹ was 61.20%, compared to 0.89%, 10.60%, and 64.78%, respectively, in the second quarter of 2016. 

 

Dennis S. Hudson, III, Seacoast’s Chairman and CEO, said “Our commitment to organic growth is producing continued consumer and small business loan growth, with a robust sales pipeline and expansion in households and customers, as we follow our credit guardrails and maintain loan granularity. Our loan growth is matched with continued execution of sound, accretive acquisitions that allow us to implement our proven integration playbook and strengthen our footprint in important Florida markets.”

 

“Our investments over the last six months have helped put Seacoast in a position to successfully execute our Vision 2020 plan, based on modernizing how we sell while lowering our cost-to-serve. The signs of progress are already evident as we boost transactions outside the branch and provide a heightened level of banking convenience through mobile adoption.” 

 

Guidance

 

The Company is reiterating its previous guidance of $1.28 to $1.32 adjusted diluted earnings per share¹ for full year 2017.

 

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.

 

 

Notable Items Affecting Second Quarter 2017 Results

 

As Seacoast continues to scale and invest in its Vision 2020 objectives, certain items, many of which were introduced last quarter, aggregated to $8.2 million in noninterest expense in the second quarter.

 

·

Leveraging our proven acquisition playbook, we completed the acquisition of GulfShore Bank on April 7, 2017, expanding the Seacoast footprint to the Tampa market. GulfShore and other merger and acquisition-related charges totaled $5.1 million2, including $3.0 million of compensation-related expense. We added 36 full-time equivalent (“FTE”) associates to our overall headcount to service the Tampa market. These additions were partially offset by strategic headcount reductions in other areas.

·

We continued execution of our branch reduction strategy, completing five branch closures in the first half of this year. Expenses associated with the four previously announced branch closures, and one additional closure in the second quarter, totaled $1.9 million2.

·

During the first quarter 2017, the Company onboarded a commercial lending team focused on specialized equipment lending for lower middle market companies. The second quarter noninterest expense reflects the full $571 thousand impact of this team on noninterest expense.

·

During the second quarter, we recorded incentive expense totaling $247 thousand for one-time signing bonuses associated with investments in technology and audit talent as we scale our organization for growth.

·

We opened a second customer support center in Orlando during the quarter, expanding our ability to support growth and our customers’ ever-increasing utilization of our 24/7 service model. This contributed to an increase in expenses in the second quarter by approximately $200 thousand.

·

Net loss on other real estate owned and repossessed assets increased $507 thousand compared to the prior quarter, with a $346 thousand net gain in the first quarter, and losses of $161 thousand in the second quarter.

 

Second Quarter 2017 Financial Highlights

 

Income Statement

 

·

Net income was $7.7 million, or $0.18 per average common diluted share, compared to $7.9 million or $0.20 for the prior quarter and $5.3 million or $0.14 for the second quarter of 2016. For the six months ended June 30, 2017, net income was $15.6 million compared to $9.3 million for the six months ended June 30, 2016. Adjusted net income1 was $12.7 million, or $0.29 per average common diluted share, compared to $10.3 million or $0.26 for the prior quarter and $9.2 million or $0.24 for the second quarter of 2016. For the six months ended June 30, 2017, adjusted net income1 was $22.9 million compared to $16.2 million for the six months ended June 30, 2016.

 

·

Net revenues were $54.6 million, an increase of $6.6 million or 14% compared to the prior quarter, and an increase of $11.0 million or 25% from the second quarter of 2016. For the six months ended June 30, 2017, net revenues were $102.7 million, an increase of $20.1 million or 24% compared to the six months ended June 30, 2016. Adjusted revenues1 were $54.6 million, an increase of $6.6 million, or 14%, from the prior quarter and an increase of $11.0 million, or 25% from the second quarter of 2016. For the six months ended June 30, 2017, adjusted revenues1 were $102.7 million, an increase of $20.7 million or 25% compared to the six months ended June 30, 2016.

 

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.

 

²Excluded from the calculation of Adjusted Noninterest Expense, a Non-GAAP measure. See “Explanation of Certain Unaudited Non-GAAP Financial Measures.”

 

 

·

Net interest income totaled $44.2 million, an increase of $6.0 million or 16% from the prior quarter and an increase of $9.7 million or 28% from the second quarter of 2016. The current quarter benefited from accretion of $1.5 million associated with early payoffs on securities and acquired loans. For the six months ended June 30, 2017, net interest income totaled $82.3 million, an increase of $17.6 million or 27% compared to the six months ended June 30, 2016.

 

·

Noninterest income totaled $10.5 million, an increase of $0.6 million or 6% compared to the prior quarter and $1.3 million or 15% higher than the second quarter of 2016. For the six months ended June 30, 2017, noninterest income totaled $20.4 million, 14% higher than the six months ended June 30, 2016. Mortgage banking fees declined quarter over quarter, the result of shifting consumer demand for construction product and tight inventory levels. Offsetting the decline, marine finance fees increased quarter over quarter reflecting strong demand for marine vessels and a strategic shift to selling more production. Other noninterest income also increased quarter over quarter by $451 thousand, largely the result of pricing increases implemented across the franchise on a number of services offered.

 

·

Net interest margin was 3.84% in the current quarter compared to 3.63% in the prior quarter and 3.63% in the second quarter of 2016. Net interest margin benefited from accretion on early payoffs of securities and acquired loans totaling 13 basis points. The remaining increase quarter over quarter was primarily the result of higher short-term interest rates.

 

·

The provision for loan losses was $1.4 million compared to $1.3 million in the prior quarter and $0.7 million in the second quarter of 2016, as a result of growth in loans outstanding.

 

·

Noninterest expense was $41.6 million compared to $34.7 million in the prior quarter and $34.8 million in the second quarter of 2016. For the six months ended June 30, 2017, noninterest expense was $76.4 million compared to $67.1 million for the six months ended June 30, 2016.

 

·

The current quarter included expenses of $1.9 million associated with branch reduction initiatives, which are expected to have a positive impact to expenses over the remainder of the year. In addition, $5.9 million of merger related charges and amortization of intangibles was incurred in the current quarter primarily related to the acquisition of GulfShore Bank in April 2017.

·

Adjusted noninterest expense1 was $33.8 million compared to $30.9 million in the prior quarter, and $28.4 million in the second quarter of 2016. For the six months ended June 30, 2017, adjusted noninterest expense1 was $64.8 million compared to $55.3 million for the six months ended June 30, 2016. The increase quarter over quarter is related to the addition of ongoing headcount and expenses associated with our new Tampa market operations totaling $1.1 million, a loss of $161 thousand on other real estate owned in the current quarter compared to a net gain of $346 thousand in the prior quarter, the full $571 thousand impact in the current quarter of the commercial lending team acquired in the first quarter, as well as other investments made in talent and professional services to scale the organization.

 

·

Seacoast recorded a $3.9 million income tax provision in the current quarter, compared to $4.1 million in the prior quarter and $2.8 million in the second quarter of 2016. Tax benefits in excess of stock-based compensation were $331 thousand in the current quarter and $234 thousand in the prior quarter.

 

·

Second quarter 2017 adjusted revenues1 increased 14% compared to prior quarter, while adjusted noninterest expense1 increased 9%, providing 5% operating leverage.

 

·

The efficiency ratio was 73.9% compared to 71.1% in the prior quarter and 78.0% in the second quarter of 2016.  The adjusted efficiency ratio1 decreased to 61.2% compared to 64.7% in the prior quarter and 64.8% in the second quarter of 2016.

 

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.

 

 

Balance Sheet

 

·

At June 30, 2017, the Company had total assets of $5.3 billion and total shareholders' equity of $577.4 million.  Book value per share was $13.29 and tangible book value per share was $10.55, compared to $12.34 and $10.41, respectively, at March 31, 2017.

 

·

Loan production remained strong across all categories. Net loans totaled $3.3 billion at June 30, 2017, an increase of $355 million or 12% compared to March 31, 2017, and an increase of $709 million or 27% from June 30, 2016. Excluding acquisitions, loans increased $463 million or 18% from the second quarter of 2016.

·

Consumer and small business originations reached $98 million, a new record level, during the current quarter.

·

Commercial originations remain strong at $110 million.

·

We continue to prudently manage CRE exposure. At 49% and 217% of total risk-based capital respectively, construction and land development and commercial real estate loan concentrations remain well below regulatory guidance.

·

Closed residential loans retained during the current quarter were $85 million, reflecting continued strong performance.

 

·

Pipelines (loans in underwriting and approval or approved and not yet closed) remain strong at $146 million in commercial, $72 million in mortgage, and $50 million in consumer and small business.

·

Commercial pipelines increased $23.7 million, or 19%, over prior quarter and $33.1 million, or 29%, over year-ago levels.

·

Mortgage pipelines decreased $6.7 million, or 9%, from prior quarter and increased $5.6 million, or 8%, over year-ago levels.

·

Consumer and small business increased from prior quarter by $5.2 million, or 12%, and from year-ago levels by $11.2 million, or 29%.

 

·

Total deposits were $4.0 billion as of June 30, 2017, an increase of $297 million, or 8%, compared to prior quarter and an increase of $474 million, or 14%, from the second quarter of 2016.

·

Deposit growth reflects our success in growing households both organically and through acquisitions. Since June 30, 2016, interest bearing deposits (interest bearing demand, savings and money markets deposits) increased $205 million, or 10%, to $2.2 billion, noninterest bearing demand deposits increased $162 million, or 14%, to $1.3 billion, and CDs increased $108 million, or 28%, to $494 million. Excluding acquired deposits, noninterest bearing deposits increased 8% and total deposits increased 1% compared to June 30, 2016.

·

The Company’s balance sheet continues to be primarily core deposit funded. Core customer funding increased to $3.6 billion at June 30, 2017, a 5% increase from March 31, 2017 and an 11% increase from June 30, 2016.

·

Seacoast continues to benefit from our competitive cost of funds. Overall cost of deposits in the current quarter is 0.17%, reflecting the significant value of the deposit franchise.

 

·

Second quarter return on average assets (ROA) was 0.61%, compared to 0.68% in the prior quarter and 0.51% from the second quarter of 2016. Return on average tangible assets (ROTA) was 0.66%, compared to 0.74% in the prior quarter and 0.56% in the second quarter of 2016. Adjusted ROTA1 was 1.02% compared to 0.90% in the prior quarter and 0.89% in the second quarter of 2016.

 

Capital

 

·

Issued 2.6 million shares in connection with the acquisition of GulfShore Bank on April 7, 2017.

·

The common equity tier 1 capital ratio (CET1) was 12.1%, total capital ratio was 14.5% and the tier 1 leverage ratio was 10.3% at June 30, 2017.

·

Tangible common equity to tangible assets was 8.9% at June 30, 2017.

 

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.

 

 

Asset Quality

 

·

Nonperforming loans to total loans outstanding at June 30, 2017 decreased to 0.52% from 0.57% at March 31, 2017 and from 0.58% as of June 30, 2016.

·

Nonperforming assets to total assets declined to 0.49% at June 30, 2017, compared to 0.52% at March 31, 2017 and 0.55% one year ago. Of the $25.7 million in nonperforming assets, $5 million relates to seven closed branch properties held as REO.

·

The ratio of allowance for loan losses to non-acquisition related loans was 0.95% at June 30, 2017, 0.95% at March 31, 2017, and 0.99% at June 30, 2016.

 

FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)		2Q17				1Q17				4Q16				3Q16				2Q16
Selected Balance Sheet Data (at period end):
Total Assets		$	5,281,295			$	4,769,775			$	4,680,932			$	4,513,934			$	4,381,204
Gross Loans			3,330,075				2,973,759				2,879,536				2,769,338				2,616,052
Total Deposits			3,975,458				3,678,645				3,523,245				3,510,493				3,501,316
Performance Measures:
Net Income		$	7,676			$	7,926			$	10,771			$	9,133			$	5,332
Net Interest Margin			3.84	%			3.63	%			3.56	%			3.69	%			3.63	%
Average Diluted Shares Outstanding (000)			43,556				39,499				38,252				38,170				38,142
Diluted Earnings Per Share (EPS)		$	0.18			$	0.20			$	0.28			$	0.24			$	0.14
Return on (annualized):
Average Assets (ROA)			0.61	%			0.68	%			0.94	%			0.82	%			0.51	%
Average Tangible Common Equity   (ROTCE)			7.25				8.77				12.51				10.91				6.62
Efficiency Ratio			73.90				71.08				62.36				68.60				78.01
Adjusted Operating Measures1:
Adjusted Net Income		$	12,665			$	10,270			$	11,803			$	11,061			$	9,156
Adjusted Diluted EPS			0.29				0.26				0.31				0.29				0.24
Adjusted ROTA			1.02	%			0.90	%			1.05	%			1.01	%			0.89	%
Adjusted ROTCE			11.22				10.74				13.14				12.56				10.60
Adjusted Efficiency Ratio			61.20				64.65				60.84				63.14				64.78
Adjusted Noninterest Expenses as a Percentage of Average Tangible Assets			2.73				2.71				2.56				2.76				2.76
Other Data
Market Capitalization		$	1,047,361			$	976,368			$	838,762			$	611,824			$	617,007
Full Time Equivalent Employees			759				743				725				731				784
Number of ATMs			76				76				77				80				85
Full Service Banking Offices			45				46				47				47				57
Registered Online Users			75,394				71,385				67,243				66,115				61,634
Registered Mobile Users			55,013				50,729				47,131				44,128				38,619

 

Second Quarter and Year-to-Date 2017 Strategic Highlights

 

Modernizing How We Sell

 

·

The Company reached another significant milestone, surpassing 100,000 households during the quarter.

·

We had a record number of deposit accounts opened outside of the branch this quarter, with 13% of all deposit accounts being opened through non-branch channels including our website and 24/7 customer support center.

 

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.

 

 

·

On May 4, we announced the expansion of our presence in the South Florida market through our agreement to acquire Palm Beach Community Bank. This acquisition will build upon our previous investment, the acquisition of Grand Bankshares Inc., completed in July 2015. On May 18, we signed an agreement to acquire NorthStar Banking Corporation, the holding company for NorthStar Bank, headquartered in Tampa, Florida. The addition of NorthStar Bank deepens our presence in the Tampa market and builds on our acquisition of GulfShore Bank completed in April 2017.

·

Consumer and small business loans originated in digital channels or by our customer support center grew 25% over first quarter 2017 and by 9% year-over-year. These are the fastest growing channels and reflects customers seeking the high level of convenience across our banking platform.

 

Lowering Our Cost to Serve

 

·

Mobile penetration increased to 32% of eligible primary consumer checking customers from 28% in June of last year.

·

39% of checks are now deposited outside the branch network, compared to 33% in June of last year.

·

In the first half of 2017, we consolidated five banking center locations. Costs associated with closures in the second quarter were $1.9 million, and the associated benefits are expected to be more fully realized in the second half of the year.

·

Customer adoption of more convenient digital channels continues to grow. In June 2017, our non-teller transactions made up 50% of our total transaction volume, up from 41% two years ago. We expect this shift in customer preference to continue to accelerate, requiring continued focus on building a digitally integrated business model.

 

Driving Improvements in How Our Business Operates

 

·

We recognized savings in the quarter due to the successful renegotiation of our agreement with a key technology and digital services provider. The agreement expands digital banking capabilities, improves service level agreements and increases our ability to scale.

·

In the first quarter 2017, by opening a second customer support center in Orlando, we expanded our ability to support growth and our customers’ ever-increasing utilization of our 24/7 service model. This contributed to an increase in expenses in the current quarter by approximately $200 thousand, while providing us with access to a larger talent pool and helping strengthen our business continuity plan.

·

During the first half of 2017, we have invested to upgrade core infrastructure and relocate our primary data center to a hardened facility dedicated to providing resilient infrastructure services.

 

Scaling and Evolving Our Culture

 

·

Earlier this year Associates participated in our annual engagement survey, which measures items such as job satisfaction and commitment to our customers. Key scores in the survey rose across the board, surpassing the 90th percentile norm for employee engagement.

·

We welcomed 36 associates from GulfShore Bank. We continue to grow our talent base in this highly attractive market. Joseph Caballero, former CEO of Gulfshore Bank will lead Seacoast’s efforts in Tampa accepting a role as Tampa market executive. Joe brings significant experience operating in the Tampa MSA, with over 25 years’ experience in banking and middle market lending.

·

Julie Kleffel, EVP and head of community banking was named an Orlando Business Journal 2017 Business Executive of the Year. She was recognized as part of the publication's annual Women Who Mean Business awards in April.

 

 

OTHER INFORMATION

 

Conference Call Information

Seacoast will host a conference call on Friday, July 28, 2017 at 10:00 a.m. (Eastern Time) to discuss the earnings results. Investors may call in (toll-free) by dialing (888) 517-2458 (passcode: 9982 916). 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 July 28, by dialing (888) 843-7419 and using passcode: 9982 916.

 

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 July 28, 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 $5.3 billion in assets and $4.0 billion in deposits as of June 30, 2017. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, 45 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 the adjacent Tampa market, 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																				Six Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,				June 30,				June 30,
		2017				2017				2016				2016				2016				2017				2016
Summary of Earnings
Net income		$	7,676			$	7,926			$	10,771			$	9,133			$	5,332			$	15,602			$	9,298
Net interest income  (1)			44,320				38,377				37,628				37,735				34,801				82,697				65,150
Net interest margin  (1), (2)			3.84	%			3.63	%			3.56	%			3.69	%			3.63	%			3.74	%			3.65
Performance Ratios
Return on average assets-GAAP basis (2)			0.61	%			0.68	%			0.94	%			0.82	%			0.51	%			0.64	%			0.48
Return on average tangible assets (2),(3)			0.66				0.74				1.00				0.88				0.56				0.70				0.52
Adjusted return on average tangible assets (2), (3), (5)			1.02				0.90				1.05				1.01				0.89				0.96				0.85
Return on average shareholders' equity-GAAP basis (2)			5.43				6.89				9.80				8.44				5.15				6.08				4.75
Return on average tangible shareholders' equity-GAAP basis (2),(3)			7.25				8.77				12.51				10.91				6.62				7.94				5.89
Adjusted return on average tangible common equity (2), (3), (5)			11.22				10.74				13.14				12.56				10.60				11.00				9.57
Efficiency ratio (4)			73.90				71.08				62.36				68.60				78.01				72.58				79.76
Adjusted efficiency ratio (5)			61.20				64.65				60.84				63.14				64.78				62.82				67.04
Noninterest income to total revenue			19.16				20.61				20.96				20.68				20.89				19.84				21.52
Average equity to average assets			11.17				9.93				9.56				9.74				9.91				10.58				10.09
Per Share Data
Net income diluted-GAAP basis		$	0.18			$	0.20			$	0.28			$	0.24			$	0.14			$	0.38			$	0.25
Net income basic-GAAP basis			0.18				0.20				0.29				0.24				0.14				0.38				0.26
Adjusted earnings (5)			0.29				0.26				0.31				0.29				0.24				0.55				0.44
Book value per share common			13.29				12.34				11.45				11.45				11.20				13.29				11.20
Tangible book value per share			10.55				10.41				9.37				9.35				9.08				10.55				9.08
Cash dividends declared			0.00				0.00				0.00				0.00				0.00				0.00				0.00
Other Data
Market capitalization (6)			1,047,361				976,368				838,762				611,824				617,007				1,047,361				617,007
Full-time equivalent employees			759				743				725				731				784				759				784
Number of ATMs			76				76				77				80				85				76				85
Full service banking offices			45				46				47				47				57				45				57
Registered online users			75,394				71,385				67,243				66,115				61,634				75,394				61,634
Registered mobile devices			55,013				50,729				47,131				44,128				38,619				55,013				38,619

 

 

(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 shareholders' 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																				YTD
		2017								2016												June 30,				June 30,
(Dollars in thousands, except share and per share data)		Second				First				Fourth				Third				Second				2017				2016
Interest on securities:
Taxable		$	8,379			$	8,087			$	6,880			$	6,966			$	6,603			$	16,466			$	12,286
Nontaxable			206				287				287				287				299				493				463
Interest and fees on loans			38,209				31,891				32,007				31,932				29,244				70,100				55,278
Interest on federal funds sold and other investments			604				510				517				429				433				1,114				723
Total Interest Income			47,398				40,775				39,691				39,614				36,579				88,173				68,750
Interest on deposits			854				624				622				679				688				1,478				1,292
Interest on time certificates			814				566				598				613				550				1,380				863
Interest on borrowed money			1,574				1,420				1,046				874				848				2,994				1,880
Total Interest Expense			3,242				2,610				2,266				2,166				2,086				5,852				4,035
Net Interest Income			44,156				38,165				37,425				37,448				34,493				82,321				64,715
Provision for loan losses			1,401				1,304				1,000				550				662				2,705				861
Net Interest Income After Provision for Loan Losses			42,755				36,861				36,425				36,898				33,831				79,616				63,854
Noninterest income:
Service charges on deposit accounts			2,435				2,422				2,612				2,698				2,230				4,857				4,359
Trust fees			917				880				969				820				838				1,797				1,644
Mortgage banking fees			1,272				1,552				1,616				1,885				1,364				2,824				2,363
Brokerage commissions and fees			351				377				480				463				470				728				1,101
Marine finance fees			326				134				115				138				279				460				420
Interchange income			2,671				2,494				2,334				2,306				2,370				5,165				4,587
Other deposit based EFT fees			114				140				125				109				116				254				243
BOLI income			757				733				611				382				379				1,490				1,220
Other			1,624				1,173				1,060				963				1,065				2,797				1,804
			10,467				9,905				9,922				9,764				9,111				20,372				17,741
Securities gains, net			21				0				7				225				47				21				136
Total Noninterest Income			10,488				9,905				9,929				9,989				9,158				20,393				17,877
Noninterest expenses:
Salaries and wages			18,375				15,369				12,476				14,337				13,884				33,744				27,283
Employee benefits			2,935				3,068				2,475				2,425				2,521				6,003				5,003
Outsourced data processing costs			3,456				3,269				3,076				3,198				2,803				6,725				7,242
Telephone / data lines			648				532				502				539				539				1,180				1,067
Occupancy			4,421				3,157				2,830				3,675				3,645				7,578				6,617
Furniture and equipment			1,679				1,391				1,211				1,228				1,283				3,070				2,281
Marketing			1,074				922				847				780				957				1,996				2,006
Legal and professional fees			3,276				2,132				2,370				2,213				2,656				5,408				5,013
FDIC assessments			650				570				661				517				643				1,220				1,187
Amortization of intangibles			839				719				719				728				593				1,558				1,039
Asset dispositions expense			136				53				84				219				160				189				250
Net loss/(gain) on other real estate owned and repossessed assets			161				(346	)			(161	)			(96	)			(201	)			(185	)			(252	)
Early redemption cost for Federal Home Loan Bank advances			0				0				0				0				1,777				0				1,777
Other			3,975				3,910				3,207				3,672				3,548				7,885				6,636
Total Noninterest Expenses			41,625				34,746				30,297				33,435				34,808				76,371				67,149
Income Before Income Taxes			11,618				12,020				16,057				13,452				8,181				23,638				14,582
Income taxes			3,942				4,094				5,286				4,319				2,849				8,036				5,284
Net Income		$	7,676			$	7,926			$	10,771			$	9,133			$	5,332			$	15,602			$	9,298
Per share of common stock:
Net income diluted		$	0.18			$	0.20			$	0.28			$	0.24			$	0.14			$	0.38			$	0.25
Net income basic			0.18				0.20				0.29				0.24				0.14				0.38				0.26
Cash dividends declared			0.00				0.00				0.00				0.00				0.00				0.00				0.00
Average diluted shares outstanding			43,556,285				39,498,835				38,252,351				38,169,863				38,141,550				41,538,769				36,797,259
Average basic shares outstanding			42,841,152				38,839,284				37,603,789				37,549,804				37,470,071				40,851,273				36,159,473

 

 

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

 

		June 30,				March 31,				December 31,				September 30,				June 30,
(Dollars in thousands, except share data)		2017				2017				2016				2016				2016
Assets
Cash and due from banks		$	88,133			$	133,923			$	82,520			$	89,777			$	113,028
Interest bearing deposits with other banks			36,490				10,914				27,124				77,606				13,774
Total Cash and Cash Equivalents			124,623				144,837				109,644				167,383				126,802
Securities:
Available for sale (at fair value)			1,016,744				909,275				950,503				866,613				923,560
Held to maturity (at amortized cost)			397,096				379,657				372,498				392,138				401,570
Total Securities			1,413,840				1,288,932				1,323,001				1,258,751				1,325,130
Loans held for sale			22,262				16,326				15,332				20,143				20,075
Loans			3,330,075				2,973,759				2,879,536				2,769,338				2,616,052
Less: Allowance for loan losses			(26,000	)			(24,562	)			(23,400	)			(22,684	)			(20,725	)
Net Loans			3,304,075				2,949,197				2,856,136				2,746,654				2,595,327
Bank premises and equipment, net			56,765				58,611				58,684				59,035				63,817
Other real estate owned			8,497				7,885				9,949				12,734				8,694
Goodwill			101,739				64,649				64,649				64,649				64,123
Other intangible assets, net			16,941				13,853				14,572				15,291				16,154
Bank owned life insurance			88,003				85,237				84,580				44,044				43,729
Net deferred tax assets			52,195				55,834				60,818				58,848				62,648
Other assets			92,355				84,414				83,567				66,402				54,705
Total Assets		$	5,281,295			$	4,769,775			$	4,680,932			$	4,513,934			$	4,381,204
Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest demand		$	1,308,458			$	1,225,124			$	1,148,309			$	1,168,542			$	1,146,792
Interest-bearing demand			934,861				870,457				873,727				776,480				776,388
Savings			376,825				363,140				346,662				340,899				330,928
Money market			861,119				821,606				802,697				858,931				860,930
Other time certificates			155,265				153,840				159,887				166,987				172,816
Brokered time certificates			149,270				66,741				7,342				8,218				9,216
Time certificates of $100,000 or more			189,660				177,737				184,621				190,436				204,246
Total Deposits			3,975,458				3,678,645				3,523,245				3,510,493				3,501,316
Securities sold under agreements to repurchase			167,558				183,107				204,202				167,693				183,387
Federal Home Loan Bank borrowings			395,000				302,000				415,000				305,000				151,000
Subordinated debt			70,381				70,311				70,241				70,171				70,101
Other liabilities			95,521				33,218				32,847				25,058				49,971
Total Liabilities			4,703,918				4,267,281				4,245,535				4,078,415				3,955,775
Shareholders' Equity
Common stock			4,339				4,075				3,802				3,799				3,799
Additional paid in capital			574,842				510,806				454,001				453,007				451,542
Accumulated earnings/(deficit)			1,945				(5,731	)			(13,657	)			(24,427	)			(33,560	)
Treasury stock			(1,768	)			(1,172	)			(1,236	)			(691	)			(482	)
			579,358				507,978				442,910				431,688				421,299
Accumulated other comprehensive income/(loss), net			(1,981	)			(5,484	)			(7,513	)			3,831				4,130
Total Shareholders' Equity			577,377				502,494				435,397				435,519				425,429
Total Liabilities & Shareholders' Equity		$	5,281,295			$	4,769,775			$	4,680,932			$	4,513,934			$	4,381,204
Common Shares Outstanding			43,458,973				40,715,938				38,021,835				38,025,020				37,993,013

 

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)		Second				First				Fourth				Third				Second
Credit Analysis
Net charge-offs (recoveries) - non-acquired loans		$	368			$	260			$	142			$	(1,328	)		$	(315	)
Net charge-offs (recoveries) - acquired loans			(405	)			(118	)			141				(81	)			(24	)
Total net charge-offs (recoveries)		$	(37	)		$	142			$	283			$	(1,409	)		$	(339	)
Net charge-offs (recoveries) to average loans - non-acquired loans			0.05	%			0.04	%			0.02	%			(0.20	)%			(0.05	)%
Net charge-offs (recoveries) to average loans - acquired loans			(0.05	)			(0.02	)			0.02				(0.01	)			0.00
Total net charge-offs (recoveries) to average loans			0.00				0.02				0.04				(0.21	)			(0.05	)
Loan loss provision (recapture) - non-acquired loans		$	1,690			$	1,504			$	1,161			$	649			$	423
Loan loss provision (recapture) - acquired loans			(289	)			(200	)			(161	)			(99	)			239
Total loan loss provision		$	1,401			$	1,304			$	1,000			$	550			$	662
Allowance for loan losses - non-acquired loans		$	25,809			$	24,487			$	23,243			$	22,225			$	20,248
Allowance for loan losses - acquired loans			191				75				157				459				477
Total allowance for loan losses		$	26,000			$	24,562			$	23,400			$	22,684			$	20,725
Non-acquired loans at end of period		$	2,722,866			$	2,572,549			$	2,425,850			$	2,272,275			$	2,047,881
Purchased noncredit impaired loans at end of period			594,077				388,228				440,690				484,006				554,519
Purchased credit impaired loans at end of period			13,132				12,982				12,996				13,057				13,652
Total loans		$	3,330,075			$	2,973,759			$	2,879,536			$	2,769,338			$	2,616,052
Non-acquired loans allowance for loan losses to non-acquired loans at end of period			0.95	%			0.95	%			0.96	%			0.98	%			0.99	%
Acquired loans allowance for loan losses to acquired loans at end of period			0.03				0.02				0.03				0.09				0.08
Discount for credit losses to acquired loans at end of period			3.37				4.25				4.18				4.24				3.96
End of Period
Nonperforming loans - non-acquired loans		$	10,541			$	10,557			$	11,023			$	10,561			$	10,919
Nonperforming loans - acquired loans			6,632				6,428				7,048				7,876				4,360
Other real estate owned - non-acquired			1,748				2,790				3,041				3,681				3,791
Other real estate owned - acquired			1,645				1,203				1,203				1,468				1,644
Bank branches closed included in other real estate owned			5,104				3,892				5,705				7,585				3,259
Total nonperforming assets		$	25,670			$	24,870			$	28,020			$	31,171			$	23,973
Restructured loans (accruing)		$	16,941			$	18,125			$	17,711			$	19,272			$	20,337
Nonperforming loans to loans at end of period - non-acquired loans			0.32	%			0.36	%			0.38	%			0.38	%			0.42	%
Nonperforming loans to loans at end of period - acquired loans			0.20				0.22				0.24				0.28				0.16
Total nonperforming loans to loans at end of period			0.52				0.57				0.62				0.66				0.58
Nonperforming assets to total assets - non-acquired			0.33	%			0.36	%			0.42	%			0.48	%			0.41	%
Nonperforming assets to total assets - acquired			0.16				0.16				0.18				0.21				0.14
Total nonperforming assets to total assets			0.49				0.52				0.60				0.69				0.55
Average Balances
Total average assets		$	5,082,002			$	4,699,745			$	4,572,188			$	4,420,438			$	4,206,800
Less: Intangible assets			114,563				78,878				79,620				80,068				69,449
Total average tangible assets		$	4,967,439			$	4,620,867			$	4,492,568			$	4,340,370			$	4,137,351
Total average equity		$	567,448			$	466,847			$	437,077			$	430,410			$	416,748
Less: Intangible assets			114,563				78,878				79,620				80,068				69,449
Total average tangible equity		$	452,885			$	387,969			$	357,457			$	350,342			$	347,299
		June 30,				March 31,				December 31,				September 30,				June 30,
LOANS		2017				2017				2016				2016				2016
Construction and land development		$	230,574			$	174,992			$	160,116			$	153,901			$	142,387
Commercial real estate			1,464,068				1,354,140				1,357,592				1,293,512				1,239,508
Residential real estate			991,144				893,674				836,787				833,413				794,321
Installment loans to individuals			178,595				165,039				153,945				145,523				115,513
Commercial and financial			465,138				385,189				370,589				342,502				323,466
Other loans			556				725				507				489				857
Total Loans		$	3,330,075			$	2,973,759			$	2,879,536			$	2,769,338			$	2,616,052

 

 

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

 

		June 30,				March 31,				December 31,				September 30,				June 30,
(Dollars in thousands)		2017				2017				2016				2016				2016
Customer Relationship Funding
Noninterest demand
Commercial		$	995,720			$	916,940			$	860,449			$	892,876			$	860,953
Retail			238,506				234,109				220,134				209,351				211,722
Public funds			47,691				52,126				48,690				42,147				44,275
Other			26,541				21,949				19,036				24,168				29,842
			1,308,458				1,225,124				1,148,309				1,168,542				1,146,792
Interest-bearing demand
Commercial			155,178				117,629				102,320				100,824				102,105
Retail			659,906				613,121				591,808				567,286				549,301
Public funds			119,777				139,707				179,599				108,370				124,982
			934,861				870,457				873,727				776,480				776,388
Total transaction accounts
Commercial			1,150,898				1,034,569				962,769				993,700				963,058
Retail			898,412				847,230				811,942				776,637				761,023
Public funds			167,468				191,833				228,289				150,517				169,257
Other			26,541				21,949				19,036				24,168				29,842
			2,243,319				2,095,581				2,022,036				1,945,022				1,923,180
Savings			376,825				363,140				346,662				340,899				330,928
Money market
Commercial			351,871				313,094				286,879				313,200				293,724
Retail			427,575				414,886				411,696				411,550				419,821
Public funds			81,673				93,626				104,122				134,181				147,385
			861,119				821,606				802,697				858,931				860,930
Time certificates of deposit			494,195				398,318				351,850				365,641				386,278
Total Deposits		$	3,975,458			$	3,678,645			$	3,523,245			$	3,510,493			$	3,501,316
Customer sweep accounts		$	167,558			$	183,107			$	204,202			$	167,693			$	183,387
Total core customer funding (1)		$	3,648,821			$	3,463,434			$	3,375,597			$	3,312,545			$	3,298,425

 

(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
		Second Quarter												First Quarter												Second Quarter
		Average								Yield/				Average								Yield/				Average								Yield/
(Dollars in thousands)		Balance				Interest				Rate				Balance				Interest				Rate				Balance				Interest				Rate
Assets
Earning assets:
Securities:
Taxable		$	1,261,017			$	8,379				2.66	%		$	1,279,246			$	8,087				2.53	%		$	1,185,022			$	6,603				2.23	%
Nontaxable			28,092				316				4.50				27,833				441				6.34				28,445				459				6.45
Total Securities			1,289,109				8,695				2.70				1,307,079				8,528				2.61				1,213,468				7,062				2.33
Federal funds sold and other investments			72,535				604				3.34				56,771				510				3.64				110,636				433				1.57
Loans, net			3,266,812				38,263				4.70				2,918,665				31,949				4.44				2,532,533				29,392				4.67
Total Earning Assets			4,628,456				47,562				4.12				4,282,515				40,987				3.88				3,856,637				36,887				3.85
Allowance for loan losses			(25,276	)											(24,036	)											(20,185	)
Cash and due from banks			99,974												105,803												92,159
Premises and equipment			59,415												58,783												63,149
Intangible assets			114,563												78,878												69,449
Bank owned life insurance			87,514												84,811												43,542
Other assets			117,355												112,991												102,049
Total Assets		$	5,082,002											$	4,699,745											$	4,206,800
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand		$	949,981			$	262				0.11	%		$	834,244			$	163				0.08	%		$	755,206			$	161				0.09	%
Savings			378,989				51				0.05				353,452				44				0.05				322,567				39				0.05
Money market			868,427				541				0.25				803,795				417				0.21				810,709				488				0.24
Time deposits			432,805				814				0.75				347,143				566				0.66				366,263				550				0.60
Federal funds purchased and securities sold under agreements to repurchase			174,715				194				0.45				181,102				153				0.34				195,802				129				0.26
Federal Home Loan Bank borrowings			323,780				780				0.97				426,144				702				0.67				171,011				215				0.51
Other borrowings			70,343				600				3.42				70,273				565				3.26				70,064				504				2.89
Total Interest-Bearing Liabilities			3,199,040				3,242				0.41				3,016,153				2,610				0.35				2,691,622				2,086				0.31
Noninterest demand			1,283,255												1,183,813												1,059,039
Other liabilities			32,259												32,932												39,391
Total Liabilities			4,514,554												4,232,898												3,790,052
Shareholders' equity			567,448												466,847												416,748
Total Liabilities & Equity		$	5,082,002											$	4,699,745											$	4,206,800
Interest expense as a % of earning assets											0.28	%											0.25	%											0.22	%
Net interest income as a % of earning assets						$	44,320				3.84	%						$	38,377				3.63	%						$	34,801				3.63	%

 

(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.

 

 

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

 

		2017												2016
		Year to Date												Year to Date
		Average								Yield/				Average								Yield/
(Dollars in thousands)		Balance				Interest				Rate				Balance				Interest				Rate
Assets
Earning assets:
Securities:
Taxable		$	1,270,081			$	16,466				2.59	%		$	1,090,662			$	12,286				2.25	%
Nontaxable			27,963				757				5.41				23,187				710				6.12
Total Securities			1,298,044				17,223				2.65				1,113,849				12,996				2.33
Federal funds sold and other investments			64,697				1,114				3.47				81,425				723				1.79
Loans, net			3,093,700				70,212				4.58				2,389,653				55,466				4.67
Total Earning Assets			4,456,441				88,549				4.01				3,584,927				69,185				3.88
Allowance for loan losses			(24,658	)											(19,872	)
Cash and due from banks			102,872												87,053
Premises and equipment			59,101												60,106
Intangible assets			96,819												53,228
Bank owned life insurance			86,170												43,594
Other assets			115,184												95,055
Total Assets		$	4,891,929											$	3,904,091
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand		$	892,432			$	425				0.10	%		$	732,645			$	316				0.09	%
Savings			366,291				95				0.05				312,887				76				0.05
Money market			836,289				958				0.23				739,087				900				0.24
Time deposits			390,211				1,380				0.71				335,332				863				0.52
Federal funds purchased and securities sold under agreements to repurchase			177,891				347				0.39				190,765				256				0.27
Federal Home Loan Bank borrowings			374,680				1,482				0.80				114,160				624				1.10
Other borrowings			70,308				1,165				3.34				70,025				1,000				2.87
Total Interest-Bearing Liabilities			3,108,102				5,852				0.38				2,494,901				4,035				0.33
Noninterest demand			1,233,809												982,635
Other liabilities			32,593												32,773
Total Liabilities			4,374,504												3,510,309
Shareholders' equity			517,425												393,782
Total Liabilities & Equity		$	4,891,929											$	3,904,091
Interest expense as a % of earning assets											0.26	%											0.23	%
Net interest income as a % of earning assets						$	82,697				3.74	%						$	65,150				3.65	%

 

(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.

 

 

		QUARTER																				YTD
		Second				First				Fourth				Third				Second				June 30,				June 30,
(Dollars in thousands except per share data)		2017				2017				2016				2016				2016				2017				2016
Net income		$	7,676			$	7,926			$	10,771			$	9,133			$	5,332			$	15,602			$	9,298
BOLI income (benefits upon death)			0				0				0				0				0				0				(464	)
Security gains			(21	)			0				(7	)			(225	)			(47	)			(21	)			(136	)
Total Adjustments to Revenue			(21	)			0				(7	)			(225	)			(47	)			(21	)			(600	)
Merger related charges			5,081				533				561				1,699				2,446				5,614				6,768
Amortization of intangibles			839				719				719				728				593				1,558				1,039
Branch reductions and other expense initiatives			1,876				2,572				163				894				1,587				4,448				2,300
Early redemption cost for FHLB advances			0				0				0				0				1,777				0				1,777
Total Adjustments to Noninterest Expense			7,796				3,824				1,443				3,321				6,403				11,620				11,884
Effective tax rate on adjustments			(2,786	)			(1,480	)			(404	)			(1,168	)			(2,532	)			(4,266	)			(4,377	)
Adjusted Net Income		$	12,665			$	10,270			$	11,803			$	11,061			$	9,156			$	22,935			$	16,205
Earnings per diluted share, as reported			0.18				0.20				0.28				0.24				0.14				0.38				0.25
Adjusted Earnings per Diluted Share			0.29				0.26				0.31				0.29				0.24				0.55				0.44
Average shares outstanding (000)			43,556				39,499				38,252				38,170				38,142				41,543				36,797
Revenue		$	54,644			$	48,070			$	47,354			$	47,437			$	43,651			$	102,714			$	82,592
Total Adjustments to Revenue			(21	)			0				(7	)			(225	)			(47	)			(21	)			(600	)
Adjusted Revenue			54,623				48,070				47,347				47,212				43,604				102,693				81,992
Noninterest Expense			41,625				34,746				30,297				33,435				34,808				76,371				67,149
Total Adjustments to Noninterest Expense			7,796				3,824				1,443				3,321				6,403				11,620				11,884
Adjusted Noninterest Expense			33,829				30,922				28,854				30,114				28,405				64,751				55,265
Adjusted Noninterest Expense			33,829				30,922				28,854				30,114				28,405				64,751				55,265
Foreclosed property expense and net (gain)/loss on sale			297				(293	)			(78	)			124				(41	)			4				(3	)
Net Adjusted Noninterest Expense			33,532				31,215				28,932				29,990				28,446				64,747				55,268
Adjusted Revenue			54,623				48,070				47,347				47,212				43,604				102,693				81,992
Impact of FTE adjustment			164				211				204				287				308				375				435
Adjusted Revenue on a fully taxable equivalent basis			54,787				48,281				47,551				47,499				43,912				103,068				82,427
Adjusted Efficiency Ratio			61.20	%			64.65	%			60.84	%			63.14	%			64.78	%			62.82				67.05	%
Average Assets		$	5,082,002			$	4,699,745			$	4,572,188			$	4,420,438			$	4,206,800			$	4,891,929			$	3,904,091
Less average goodwill and intangible assets			(114,563	)			(78,878	)			(79,620	)			(80,068	)			(69,449	)			(96,819	)			(53,228	)
Average Tangible Assets			4,967,439				4,620,867				4,492,568				4,340,370				4,137,351				4,795,110				3,850,863
Return on Average Assets (ROA)			0.61	%			0.68	%			0.94	%			0.82	%			0.51	%			0.64	%			0.48	%
Impact of removing average intangible assets and related amortization			0.05				0.06				0.06				0.06				0.05				0.06				0.04
Return on Tangible Average Assets (ROTA)			0.66				0.74				1.00				0.88				0.56				0.70				0.52
Impact of other adjustments for Adjusted Net Income			0.36				0.16				0.05				0.13				0.33				0.26				0.33
Adjusted Return on Average Tangible Assets			1.02				0.90				1.05				1.01				0.89				0.96				0.85
Average Shareholders' Equity		$	567,448			$	466,847			$	437,077			$	430,410			$	416,748			$	517,425			$	393,782
Less average goodwill and intangible assets			(114,563	)			(78,878	)			(79,620	)			(80,068	)			(69,449	)			(96,819	)			(53,228	)
Average Tangible Equity			452,885				387,969				357,457				350,342				347,299				420,606				340,554
Return on Average Shareholders' Equity			5.4	%			6.9	%			9.8	%			8.4	%			5.1	%			6.1	%			4.7	%
Impact of removing average intangible assets and related amortization			1.9				1.9				2.7				2.5				1.5				1.8				1.2
Return on Average Tangible Common Equity (ROTCE)			7.3				8.8				12.5				10.9				6.6				7.9				5.9
Impact of other adjustments for Adjusted Net Income			3.9				1.9				0.6				1.7				4.0				3.1				3.7
Adjusted Return on Average Tangible Common Equity			11.2				10.7				13.1				12.6				10.6				11.0				9.6