Exhibit 99.1

 

Charles M. Shaffer

Executive Vice President

Chief Financial Officer

(772) 221-7003

Chuck.Shaffer@seacoastbank.com

 

 

SEACOAST REPORTS SECOND QUARTER 2018 RESULTS

 

Net Income Increases 121% Year-Over-Year to $17.0 Million

 

Record Consumer and Small Business Loan Originations, Record Commercial Pipeline Entering the Third Quarter

 

 

STUART, Fla., July 26, 2018 /GLOBE NEWSWIRE/ -- Seacoast Banking Corporation of Florida (“Seacoast” or “the Company”) (NASDAQ: SBCF) reported net income of $17.0 million, or $0.35 per share for the second quarter of 2018, a 121% or $9.3 million increase year-over-year. Seacoast reported adjusted net income¹ of $18.3 million, or $0.38 per share, representing a 44% or $5.6 million increase year-over-year.

 

For the second quarter 2018, return on average tangible assets was 1.24%, return on average tangible shareholders’ equity was 13.1%, and the efficiency ratio was 58.4%, compared to 1.34%, 14.4% and 57.8%, respectively, in the prior quarter and 0.66%, 7.3%, and 73.9%, respectively, in the second quarter of 2017.  Adjusted return on average tangible assets¹ was 1.28%, adjusted return on average tangible shareholders’ equity¹ was 13.5%, and the adjusted efficiency ratio¹ was 57.3%, compared to 1.38%, 14.8%, and 57.1%, respectively, in the prior quarter, and 1.02%, 11.2%, and 61.2%, respectively, in the second quarter of 2017.

 

Dennis S. Hudson, III, Seacoast’s Chairman and CEO, said “Seacoast’s balanced growth strategy, combining organic growth with value-creating acquisitions, continues to benefit our shareholders. Consumer and small business loan originations reached record levels and we exited the quarter with our commercial loan pipeline at an all-time high. Looking ahead, we expect our total loan growth to accelerate, driven by the combination of a robust pipeline, investments we have made in proprietary commercial banking technologies, and expanding our commercial platform within the Tampa and South Florida markets. During the quarter we announced the acquisition of First Green Bancorp, Inc., which will introduce more than 10,000 new customers in central and south Florida to Seacoast’s innovative banking platforms and deepen our presence in Orlando, Florida’s third-largest metropolitan area. We expect this acquisition to close early in the fourth quarter.”

 

Charles M. Shaffer, Seacoast’s Chief Financial Officer, said, “We continue to balance a disciplined approach to credit, liquidity, and expense management, while making investments in technology and talent, resulting in an increase in tangible book value per share to $11.67 at period end and positioning us well to deliver the strong performance we outlined in our Vision 2020 plan. With a loan to deposit ratio of 84% and a ratio of tangible common equity to tangible assets of 9.6%, our balance sheet provides us with the resources to prudently fund our organic growth initiatives while continuing to make accretive acquisitions.”

 

 

 

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

 

Notable Items Impacting the Second Quarter

 

Several notable items in aggregate impacted the quarter by approximately $0.05 per share. These include a $0.5 million reduction in accretion of purchase discounts on acquired loans quarter over quarter, and higher prepayments on the nonacquired originated loan portfolio which reduced loan growth by 3%. Additionally, we recognized $1.7 million in net charge-offs and $0.3 million in losses on the sale of other real estate owned during the quarter.

 

Second Quarter 2018 Financial Highlights

 

Income Statement

 

•

Net income was $17.0 million, or $0.35 per diluted share, compared to $18.0 million or $0.38 for the prior quarter and $7.7 million or $0.18 for the second quarter of 2017. For the six months ended June 30, 2018, net income was $35.0 million compared to $15.6 million for the six months ended June 30, 2017. Adjusted net income1 was $18.3 million, or $0.38 per diluted share, compared to $19.3 million or $0.40 for the prior quarter and $12.7 million or $0.29 for the second quarter of 2017. For the six months ended June 30, 2018, adjusted net income1 was $37.6 million compared to $22.9 million for the six months ended June 30, 2017.

 

•

Net revenues were $62.9 million, an increase of $0.9 million or 1% compared to the prior quarter, and an increase of $8.3 million or 15% compared to the second quarter of 2017. For the six months ended June 30, 2018, net revenues were $125.0 million, an increase of $22.3 million or 22% compared to the six months ended June 30, 2017. Adjusted revenues1 were $63.0 million, an increase of $0.8 million, or 1%, from the prior quarter and an increase of $8.4 million, or 15% from the second quarter of 2017. For the six months ended June 30, 2018, adjusted revenues1 were $125.1 million, an increase of $22.4 million or 22% compared to the six months ended June 30, 2017.

 

•

Net interest income totaled $50.2 million, an increase of $0.4 million or 1% from the prior quarter and an increase of $6.1 million or 14% from the second quarter of 2017. For the six months ended June 30, 2018, net interest income totaled $100.0 million, an increase of $17.6 million or 21% compared to the six months ended June 30, 2017.

 

•

Net interest margin was 3.77% in the current quarter compared to 3.80% in the prior quarter and 3.84% in the second quarter of 2017. Removing the impact of accretion of purchase discounts on acquired loans the net interest margin was 3.61% in the current quarter, compared to 3.60% in the prior quarter and 3.59% in the second quarter of 2017. Quarter over quarter accretion on purchase discounts on acquired loans declined by $0.5 million, impacting the net interest margin by 4 basis points.

 

•

Noninterest income totaled $12.7 million, an increase of $0.4 million or 4% compared to the prior quarter and an increase of $2.2 million or 21% from the second quarter of 2017. For the six months ended June 30, 2018, noninterest income totaled $25.0 million, 23% higher than the six months ended June 30, 2017. Adjusted noninterest income1 totaled $12.8 million for the quarter, an increase of $0.4 million or 3% compared to prior quarter and an increase of $2.3 million or 22% from the second quarter of 2017. Following on the significant progress we made in the first quarter, second quarter results reflected growth across our businesses resulting in improvements in nearly every category. We continue to benefit from the investments we have made in Wealth Management and SBA lending.

 

 

 

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

 

•

The provision for loan losses was $2.5 million, compared to $1.1 million in the prior quarter and $1.4 million in the second quarter of 2017, reflecting the effect of portfolio growth as well as $1.7 million in net charge-offs in the current quarter.

 

•

Noninterest expense was $38.2 million compared to $37.2 million in the prior quarter and $41.6 million in the second quarter of 2017. For the six months ended June 30, 2018, noninterest expense was $75.4 million compared to $76.4 million for the six months ended June 30, 2017. In the current quarter, noninterest expense included $0.7 million in merger related expenses. Adjusted noninterest expense1 was $36.5 million compared to $35.7 million in the prior quarter, and $33.8 million in the second quarter of 2017. For the six months ended June 30, 2018, adjusted noninterest expense1 was $72.3 million compared to $64.8 million for the six months ended June 30, 2017. The increase in noninterest expense quarter over quarter was the result of continued investments in both talent and technology in the organization positioning Seacoast for continued robust profitability. We acquired two commercial banking team leaders, four commercial bankers, and made investments in talent to support scaling the organization prudently. During the second quarter, we granted 191,000 restricted shares, along with performance awards for up to an additional 356,000 shares upon meeting certain performance criteria. This investment for growth was granted deep into the organization, with the goal of providing meaningful value to our associates for achieving our performance objectives.

 

•

Seacoast recorded $5.2 million in income tax expense in the current quarter, compared to $5.8 million in the prior quarter and $3.9 million in the second quarter of 2017. The effective tax rate of 23.4% in the current quarter reflects the positive impact of the new lower corporate tax rate. Prior quarter included the effect of an additional $0.3 million write down of deferred tax assets arising from measurement period adjustments on a prior year bank acquisition. The write down of those assets in the prior quarter increased the effective tax rate by 1.1% to 24.3%.

 

•

Year to date adjusted revenues1 increased 22% compared to prior year while adjusted noninterest expense1 increased 12%, providing 10% operating leverage.

 

•

The efficiency ratio was 58.4% compared to 57.8% in the prior quarter and 73.9% in the second quarter of 2017. The adjusted efficiency ratio1 was 57.3% compared to 57.1% in the prior quarter and 61.2% in the second quarter of 2017.

 

Balance Sheet

 

•

At June 30, 2018, the Company had total assets of $5.9 billion and total shareholders' equity of $716 million.  Book value per share was $15.18 and tangible book value per share was $11.67, compared to $14.94 and $11.39, respectively, at March 31, 2018 and $13.29 and $10.55, respectively, at June 30, 2017.

 

•

Debt Securities totaled $1.3 billion at June 30, 2018, a decrease of $47 million compared to prior quarter and a decrease of $70 million from June 30, 2017. Given the current interest rate environment, the securities portfolio is being used as a liquidity source to fund loan growth.

 

 

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

 

 

•

Net loans totaled $3.9 billion at June 30, 2018, an increase of $76 million compared to prior quarter or 8% annualized in the current quarter, and an increase of $641 million or 19% from June 30, 2017. Excluding the impact of two acquisitions in the fourth quarter of 2017, loans increased $237 million or 7% from June 30, 2017.

•

During the current quarter, commercial originations were $140.4 million, consumer and small business originations for the quarter were a record $104.9 million and retained residential loans were $75.0 million.

•

Loan growth for the quarter was impacted by higher loan prepayments when compared to the prior quarter, impacting annualized loan growth by 3%.

•

We continue to prudently manage commercial real estate exposure. Construction and land development and commercial real estate loans remain well below regulatory guidance at 59% and 203% of total risk based capital, respectively.

 

•

Pipelines (loans in underwriting and approval or approved and not yet closed) are at a record high for second quarter. At June 30, 2018, total pipelines were $311.6 million, an increase of 28% over the prior quarter and 16% compared to prior year.

•

Commercial pipelines were $194.9 million, an increase of $72.2 million, or 59%, from prior quarter.

•

Consumer and small business pipelines were $52.9 million, an increase of $2.6 million, or 5%, compared to the prior quarter.

•

Residential pipelines were $63.7 million, decreasing by $7.0 million, or 10%, from prior quarter.

 

•

Total deposits were $4.7 billion as of June 30, 2018, a decrease of $22 million from prior quarter and an increase of $722 million, or 18%, from June 30, 2017. The quarter over quarter decline in deposit outstandings reflects a normal impact of the summer season in Florida.

•

Year-over-year, interest bearing deposits (interest bearing demand, savings and money market deposits) increased $271 million, or 12%, to $2.4 billion, noninterest bearing demand deposits increased $155 million, or 12%, to $1.5 billion, and CDs increased $295 million, or 60%, to $790 million.

•

Excluding acquired deposits, noninterest bearing deposits increased 4% while total deposits increased 5% compared to June 30, 2017.

•

The Company’s balance sheet continues to be primarily core deposit funded. Core customer funding was $4.1 billion at June 30, 2018, compared to $4.1 billion at March 31, 2018 and $3.6 billion at June 30, 2017.

•

Overall cost of deposits remains attractive at 39 basis points.

 

•

Second quarter return on average tangible assets (ROTA) was 1.24%, compared to 1.34% in the prior quarter and 0.66% in the second quarter of 2017. Adjusted ROTA1 was 1.28% compared to 1.38% in the prior quarter and 1.02% in the second quarter of 2017.

 

Capital

 

•

Second quarter return on average tangible common equity (ROTCE) was 13.08%, compared to 14.41% in the prior quarter and 7.25% in the second quarter of 2017. Adjusted ROTCE1 was 13.49% compared to 14.82% in the prior quarter and 11.22% in the second quarter of 2017.

•

The common equity tier 1 capital ratio (CET1) was 12.9%, total capital ratio was 15.2% and the tier 1 leverage ratio was 11.0% at June 30, 2018.

•

Tangible common equity to tangible assets was 9.56% at June 30, 2018, compared to 9.33% at March 31, 2018, and 8.88% at June 30, 2017.

 

 

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

 

Asset Quality

 

•

Nonperforming loans to total loans outstanding was 0.66% at June 30, 2018, 0.50% at March 31, 2018, and 0.52% at June 30, 2017. Nonperforming loans increased $7.0 million, the result of a transfer of a single credit to nonaccrual status.

•

Nonperforming assets to total assets was 0.58% at June 30, 2018, 0.50% at March 31, 2018 and 0.49% at June 30, 2017. The $34.6 million in nonperforming assets includes $3.1 million in closed branch properties held as REO.

•

The ratio of allowance for loan losses to total loans was 0.73% at June 30, 2018, 0.72% at March 31, 2018, and 0.78% at June 30, 2017.

•

The ratio of allowance for loan losses to non-acquired loans was 0.88% at June 30, 2018, 0.90% at March 31, 2018, and 0.95% at June 30, 2017.

•

Net charge-offs were $1.7 million or 0.17% for the current quarter compared to near zero in the prior quarter. Net charge-offs for the four most recent quarters averaged 0.09%.

 

 

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

 

FINANCIAL HIGHLIGHTS										(Unaudited)
(Amounts in thousands except per share data)
			Quarterly Trends
			2Q'18				1Q'18				4Q'17				3Q'17				2Q'17
Selected Balance Sheet Data:
Total Assets		$	5,922,681			$	5,903,101			$	5,810,129			$	5,340,413			$	5,281,295
Gross Loans			3,974,016				3,897,125				3,817,377				3,384,991				3,330,075
Total Deposits			4,697,440				4,719,543				4,592,720				4,112,600				3,975,458
Performance Measures:
Net Income		$	16,964			$	18,027			$	13,047			$	14,216			$	7,676
Net Interest Margin			3.77	%			3.80	%			3.71	%			3.74	%			3.84	%
Average Diluted Shares Outstanding			47,974				47,688				46,473				43,792				43,556
Diluted Earnings Per Share (EPS)		$	0.35			$	0.38			$	0.28			$	0.32			$	0.18
Return on (annualized):
Average Assets (ROA)			1.16	%			1.25	%			0.91	%			1.06	%			0.61	%
Average Tangible Common Equity (ROTCE)			13.08				14.41				10.69				12.45				7.25
Efficiency Ratio			58.41				57.80				63.95				58.93				73.90
Adjusted Operating Measures1:
Adjusted Net Income		$	18,268			$	19,298			$	17,261			$	15,145			$	12,665
Adjusted Diluted EPS			0.38				0.40				0.37				0.35				0.29
Adjusted ROTA			1.28	%			1.38	%			1.23	%			1.16	%			1.02	%
Adjusted ROTCE			13.49				14.82				13.49				12.80				11.22
Adjusted Efficiency Ratio			57.31				57.05				52.55				57.69				61.20
Adjusted Noninterest Expenses as a
Percent of Average Tangible Assets			2.57				2.55				2.24				2.50				2.73
Other Data:
Market capitalization2		$	1,489,411			$	1,243,644			$	1,182,796			$	1,039,506			$	1,047,361
Full-time equivalent employees			826				814				805				762				759
Number of ATMs			87				86				85				76				76
Full service banking offices			49				49				51				45				45
Registered online users			92,107				91,636				83,881				78,880				75,394
Registered mobile devices			69,038				65,336				62,516				58,032				55,013

 

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

²Common shares outstanding multiplied by closing bid price on last day of each period

 

Acquisition of First Green Bancorp

 

On June 11, 2018 we announced the acquisition of First Green Bancorp, Inc., headquartered in Orlando, Florida, which we expect to close early in the fourth quarter. Pursuant to the terms of the merger agreement, First Green Bancorp, Inc. will be merged into Seacoast Banking Corporation, and First Green Bank will be merged into Seacoast Bank. Organized in 2009, First Green Bank has deposits of approximately $629 million and loans of $629 million. First Green operates seven branches in the Orlando, Daytona and Ft. Lauderdale markets. We expect the acquisition to be more than 10% accretive to earnings per share in 2019 excluding one-time transaction costs, and have a tangible book value earn-back of less than one year using the cross over method. The transaction is expected to provide an internal rate of return over 25%.

 

Vision 2020

 

We remain confident in our ability to achieve our Vision 2020 targets announced early last year. We continue to monitor the impact of the Tax Cuts and Jobs Act of 2017 and believe the impact of this important legislation will more fully materialize in the marketplace moving forward. Additionally, we announced the acquisition of First Green Bancorp, Inc., which is expected to close early in the fourth quarter. We believe both the Tax Cuts and Jobs Act of 2017 and the acquisition of First Green Bancorp, Inc. reinforce our ability to achieve these objectives.

 

 

	Vision 2020 Targets
Return on Tangible Assets	1.30%+
Return on Tangible Common Equity	16%+
Efficiency Ratio	Below 50%

 

 

Second Quarter Strategic Highlights

 

Modernizing How We Sell

 

•

Seacoast Wealth Management added $75.1 million in new fee-based assets under management year to date, 65% of which were the direct result of referrals from the commercial, small business, and retail teams.  The resulting trust and brokerage revenues continue to rise, with industry leading products including digital tools, and a growing sales and support team throughout the footprint.

•

We launched our proprietary Commercial Banking Portal in June, providing customized banker dashboards with key indicators and alerts. With the Portal, our bankers have real-time updates on how their customers use our products and services, allowing them to provide more meaningful guidance and advice. We believe this tool will provide our Bankers the ability to significantly expand relationships moving forward.

•

Other technology investments during the quarter included enhancements to our proprietary Connections portal, which provides our teams with greater access and insight to customer service and sales opportunities to better meet customer needs.

 

Lowering Our Cost to Serve

 

•

We continue to implement footprint-related expense reduction strategies, consolidating three banking center locations in the last twelve months. Our upcoming First Green acquisition further provides opportunity to reposition our footprint, as six out of seven First Green branches are located within three miles of a Seacoast branch.

•

An automated lending platform, currently in development with strategic technology partners, will create efficiencies by digitizing the onboarding journey with automation of underwriting activities and application of credit policies.

•

We are in early project planning to fully overhaul our commercial lending process, bringing in new technology that will allow for process automation and greater results from our bankers.

 

 

 

Driving Improvements in How Our Business Operates

 

•

Our 100% Florida-staffed call center provides 24/7 customer service, and in the second half of the year will implement a fully modernized software platform providing expanded self-serve options with additional security features.

•

Partnering with specialized providers, we have created greater scalability in mortgage fulfillment while maintaining cycle times.

 

Scaling and Evolving Our Culture

 

•

During the quarter we acquired new seasoned commercial banking leadership in the markets of Broward County and Tampa and added four new bankers to our team. Our goal is to add an additional ten commercial bankers before year end.

 

 

 

OTHER INFORMATION

 

Conference Call Information

 

Seacoast will host a conference call on Friday, July 27, 2018 at 10:00 a.m. (Eastern Time) to discuss the earnings results. Investors may call in (toll-free) by dialing (888) 466-9845 (passcode: 6353 188). 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 27, 2018 by dialing (888) 843-7419 and using passcode: 6353 188#.

 

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 27, 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 $5.9 billion in assets and $4.7 billion in deposits as of June 30, 2018. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, 49 traditional branches of its locally-branded wholly-owned subsidiary bank, Seacoast Bank, and seven 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 http://www.Seacoastbanking.com/.

 

Cautionary Notice Regarding Forward-Looking Statements

 

This press release contains "forward-looking statements" within the meaning, and protections, 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, tax law changes, and for integration of banks that we have acquired, or expect to acquire, as well as statements with respect to Seacoast's objectives, strategic plans, including Vision 2020, 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, 2017, 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)		Quarterly Trends																				Six Months Ended
			2Q'18				1Q'18				4Q'17				3Q'17				2Q'17				2Q'18				2Q'17
Summary of Earnings
Net income		$	16,964			$	18,027			$	13,047			$	14,216			$	7,676			$	34,991			$	15,602
Adjusted net income (1)			18,268				19,298				17,261				15,145				12,665				37,566				22,935
Net interest income  (2)			50,294				49,853				48,402				45,903				44,320				100,147				82,697
Net interest margin  (2), (3)			3.77	%			3.80	%			3.71	%			3.74	%			3.84	%			3.78	%			3.74	%
Performance Ratios
Return on average assets-GAAP basis (3)			1.16	%			1.25	%			0.91	%			1.06	%			0.61	%			1.20	%			0.64	%
Return on average tangible assets (3),(4)			1.24				1.34				0.97				1.12				0.66				1.29				0.70
Adjusted return on average tangible assets (1), (3), (4)			1.28				1.38				1.23				1.16				1.02				1.33				0.96
Return on average shareholders' equity-GAAP basis (3)			9.59				10.52				7.87				9.59				5.43				10.04				6.08
Return on average tangible shareholders' equity-GAAP basis (3),(4)			13.08				14.41				10.69				12.45				7.25				13.73				7.94
Adjusted return on average tangible common equity (1), (3), (4)			13.49				14.82				13.49				12.80				11.22				14.14				11.00
Efficiency ratio (5)			58.41				57.80				63.95				58.93				73.90				58.11				72.58
Adjusted efficiency ratio (1)			57.31				57.05				52.55				57.69				61.20				57.18				62.82
Noninterest income to total revenue			20.28				19.95				35.49				20.06				19.16				20.11				19.84
Tangible common equity to tangible assets			9.56				9.33				9.27				9.13				8.88				9.56				8.88
Loan-to-deposit ratio			83.51				84.10				82.54				85.18				83.48				83.51				83.48
Per Share Data
Net income diluted-GAAP basis		$	0.35			$	0.38			$	0.28			$	0.32			$	0.18			$	0.73			$	0.38
Net income basic-GAAP basis			0.36				0.38				0.29				0.33				0.18				0.74				0.38
Adjusted earnings (1)			0.38				0.40				0.37				0.35				0.29				0.79				0.55
Book value per share common			15.18				14.94				14.70				13.66				13.29				15.18				13.29
Tangible book value per share			11.67				11.39				11.15				10.95				10.55				11.67				10.55
Cash dividends declared			0.00				0.00				0.00				0.00				0.00				0.00				0.00

(1)

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

 

(2)

Calculated on a fully taxable equivalent basis using amortized cost.

 

(3)

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

 

(4)

The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.

 

(5)

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

 

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

 

		Quarterly Trends																				YTD
(Dollars in thousands, except share and per share data)			2Q'18				1Q'18				4Q'17				3Q'17				2Q'17				2Q'18				2Q'17
Interest on securities:
Taxable		$	9,389			$	9,361			$	9,153			$	8,823			$	8,379			$	18,750			$	16,466
Nontaxable			216				243				231				189				206				459				493
Interest and fees on loans			46,519				45,257				43,322				40,403				38,209				91,776				70,100
Interest on federal funds sold and other investments			585				616				638				664				604				1,201				1,114
Total Interest Income			56,709				55,477				53,344				50,079				47,398				112,186				88,173
Interest on deposits			1,988				1,538				1,246				930				854				3,526				1,478
Interest on time certificates			2,629				2,179				2,032				1,266				814				4,808				1,380
Interest on borrowed money			1,885				1,998				1,840				2,134				1,574				3,883				2,994
Total Interest Expense			6,502				5,715				5,118				4,330				3,242				12,217				5,852
Net Interest Income			50,207				49,762				48,226				45,749				44,156				99,969				82,321
Provision for loan losses			2,529				1,085				2,263				680				1,401				3,614				2,705
Net Interest Income After Provision for Loan Losses			47,678				48,677				45,963				45,069				42,755				96,355				79,616
Noninterest income:
Service charges on deposit accounts			2,674				2,672				2,566				2,626				2,435				5,346				4,857
Trust fees			1,039				1,021				941				967				917				2,060				1,797
Mortgage banking fees			1,336				1,402				1,487				2,138				1,272				2,738				2,824
Brokerage commissions and fees			461				359				273				351				351				820				728
Marine finance fees			446				573				313				137				326				1,019				460
Interchange income			3,076				2,942				2,836				2,582				2,671				6,018				5,419
BOLI income			1,066				1,056				1,100				836				757				2,122				1,490
Other			2,671				2,373				1,861				1,844				1,738				5,044				2,797
			12,769				12,398				11,377				11,481				10,467				25,167				20,372
Gain on sale of VISA stock			0				0				15,153				0				0				0				0
Securities gains/(losses), net			(48	)			(102	)			112				(47	)			21				(150	)			21
Total Noninterest Income			12,721				12,296				26,642				11,434				10,488				25,017				20,393
Noninterest expenses:
Salaries and wages			16,429				15,381				16,321				15,627				18,375				31,810				33,744
Employee benefits			3,034				3,081				2,812				2,917				2,935				6,115				6,003
Outsourced data processing costs			3,393				3,679				4,160				3,231				3,456				7,072				6,725
Telephone / data lines			643				612				538				573				648				1,255				1,180
Occupancy			3,316				3,117				3,265				2,447				4,421				6,433				7,578
Furniture and equipment			1,468				1,457				1,806				1,191				1,679				2,925				3,070
Marketing			1,344				1,252				1,490				1,298				1,074				2,596				1,996
Legal and professional fees			2,301				1,973				3,054				2,560				3,276				4,274				5,408
FDIC assessments			595				598				558				548				650				1,193				1,220
Amortization of intangibles			1,004				989				964				839				839				1,993				1,558
Foreclosed property expense and net (gain)/loss on sale			405				192				(7	)			(296	)			297				597				4
Other			4,314				4,833				4,223				3,427				3,975				9,147				7,885
Total Noninterest Expenses			38,246				37,164				39,184				34,361				41,625				75,410				76,371
Income Before Income Taxes			22,153				23,809				33,421				22,142				11,618				45,962				23,638
Income taxes			5,189				5,782				20,374				7,926				3,942				10,971				8,036
Net Income		$	16,964			$	18,027			$	13,047			$	14,216			$	7,676			$	34,991			$	15,602
Per share of common stock:
Net income diluted		$	0.35			$	0.38			$	0.28			$	0.32			$	0.18			$	0.73			$	0.38
Net income basic			0.36				0.38				0.29				0.33				0.18				0.74				0.38
Cash dividends declared			0.00				0.00				0.00				0.00				0.00				0.00				0.00
Average diluted shares outstanding			47,974,118				47,688,388				46,472,538				43,792,108				43,556,285				47,827,646				41,538,769
Average basic shares outstanding			47,164,909				46,951,829				45,541,099				43,151,248				42,841,152				47,058,958				40,851,273

 

 

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)		2018				2018				2017				2017				2017
Assets
Cash and due from banks		$	123,927			$	129,065			$	104,039			$	114,621			$	88,133
Interest bearing deposits with other banks			7,594				6,794				5,465				10,657				20,064
Total Cash and Cash Equivalents			131,521				135,859				109,504				125,278				108,197
Time deposits with other banks			10,562				12,553				12,553				14,591				16,426
Debt Securities:
Available for sale (at fair value)			954,906				982,958				949,460				990,299				1,010,244
Held to maturity (at amortized cost)			382,137				400,647				416,863				374,773				397,096
Total Debt Securities			1,337,043				1,383,605				1,366,323				1,365,072				1,407,340
Loans held for sale			14,707				20,887				24,306				29,447				22,262
Loans			3,974,016				3,897,125				3,817,377				3,384,991				3,330,075
Less: Allowance for loan losses			(28,924	)			(28,118	)			(27,122	)			(26,232	)			(26,000	)
Net Loans			3,945,092				3,869,007				3,790,255				3,358,759				3,304,075
Bank premises and equipment, net			63,991				64,577				66,883				57,092				56,765
Other real estate owned			8,417				10,288				7,640				7,142				8,497
Goodwill			148,555				148,555				147,578				101,747				101,739
Other intangible assets, net			17,319				18,246				19,099				16,102				16,941
Bank owned life insurance			121,602				120,654				123,981				118,762				88,003
Net deferred tax assets			26,021				24,427				25,417				43,951				52,195
Other assets			97,851				94,443				116,590				102,356				98,855
Total Assets		$	5,922,681			$	5,903,101			$	5,810,129			$	5,340,299			$	5,281,295
Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest demand		$	1,463,652			$	1,488,261			$	1,400,227			$	1,284,118			$	1,308,458
Interest-bearing demand			976,281				1,015,054				1,050,755				935,097				934,861
Savings			444,736				437,878				434,346				379,499				376,825
Money market			1,023,170				1,035,531				931,458				870,788				861,119
Other time certificates			413,643				410,108				414,277				288,398				278,890
Brokered time certificates			228,602				184,405				217,385				281,551				149,270
Time certificates of more than $250,000			147,356				148,306				144,272				73,149				66,035
Total Deposits			4,697,440				4,719,543				4,592,720				4,112,600				3,975,458
Securities sold under agreements to repurchase			200,050				173,249				216,094				142,153				167,558
Federal Home Loan Bank borrowings			205,000				208,000				211,000				389,000				395,000
Subordinated debt			70,664				70,591				70,521				70,451				70,381
Other liabilities			33,364				29,857				30,130				31,654				95,521
Total Liabilities			5,206,518				5,201,240				5,120,465				4,745,858				4,703,918
Shareholders' Equity
Common stock			4,716				4,698				4,693				4,351				4,339
Additional paid in capital			665,885				663,727				661,632				576,825				574,842
Retained earnings			64,790				47,825				29,914				16,161				1,945
Treasury stock			(2,884	)			(2,279	)			(2,359	)			(1,730	)			(1,768	)
			732,507				713,971				693,880				595,607				579,358
Accumulated other comprehensive loss, net			(16,344	)			(12,110	)			(4,216	)			(1,166	)			(1,981	)
Total Shareholders' Equity			716,163				701,861				689,664				594,441				577,377
Total Liabilities & Shareholders' Equity		$	5,922,681			$	5,903,101			$	5,810,129			$	5,340,299			$	5,281,295
Common Shares Outstanding			47,163,109				46,983,165				46,917,735				43,512,179				43,458,973
Note:  The balance sheet at December 31, 2017 has been derived from the audited financial statements at that date.

 

 

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

 

		Quarterly Trends
(Dollars in thousands)			2Q'18				1Q'18				4Q'17				3Q'17				2Q'17
Credit Analysis
Net charge-offs (recoveries) - non-acquired loans		$	1,715			$	117			$	1,475			$	612			$	304
Net charge-offs (recoveries) - acquired loans			(25	)			(116	)			(139	)			(333	)			(405	)
Total net charge-offs (recoveries)		$	1,690			$	1			$	1,336			$	279			$	(101	)
TDR valuation adjustments		$	33			$	88			$	37			$	169			$	64
Net charge-offs (recoveries) to average loans - non-acquired loans			0.17	%			0.01	%			0.16	%			0.07	%			0.04	%
Net charge-offs (recoveries) to average loans - acquired loans			(0.00	)			(0.01	)			(0.02	)			(0.04	)			(0.05	)
Total net charge-offs (recoveries) to average loans			0.17				0.00				0.14				0.03				(0.01	)
Loan loss provision - non-acquired loans		$	2,591			$	1,383			$	2,053			$	795			$	1,690
Loan loss provision (recapture) - acquired loans			(62	)			(298	)			210				(115	)			(289	)
Total loan loss provision		$	2,529			$	1,085			$	2,263			$	680			$	1,401
Allowance for loan losses - non-acquired loans		$	28,384			$	27,541			$	26,363			$	25,822			$	25,809
Allowance for loan losses - acquired loans			540				577				759				410				191
Total allowance for loan losses		$	28,924			$	28,118			$	27,122			$	26,232			$	26,000
Non-acquired loans at end of period		$	3,221,569			$	3,063,618			$	2,922,609			$	2,837,490			$	2,722,866
Purchased noncredit impaired loans at end of period			739,232				819,814				877,351				537,057				594,077
Purchased credit impaired loans at end of period			13,215				13,693				17,417				10,443				13,132
Total loans		$	3,974,016			$	3,897,125			$	3,817,377			$	3,384,990			$	3,330,075
Non-acquired loans allowance for loan losses to non-acquired loans at end of period			0.88	%			0.90	%			0.90	%			0.91	%			0.95	%
Total allowance for loan losses to total loans at end of period			0.73				0.72				0.71				0.77				0.78
Acquired loans allowance for loan losses to acquired loans at end of period			0.07				0.07				0.08				0.07				0.03
Discount for credit losses to acquired loans at end of period			2.31				2.32				2.33				2.77				3.37
End of Period
Nonperforming loans - non-acquired		$	19,578			$	12,628			$	12,569			$	10,877			$	10,541
Nonperforming loans - acquired			6,624				6,711				6,955				3,498				6,632
Other real estate owned - non-acquired			354				2,246				2,246				1,748				1,748
Other real estate owned - acquired			4,969				4,969				1,632				1,632				1,645
Bank branches closed included in other real estate owned			3,094				3,073				3,762				3,762				5,104
Total nonperforming assets		$	34,619			$	29,627			$	27,164			$	21,517			$	25,670
Restructured loans (accruing)		$	14,241			$	14,777			$	15,559			$	16,181			$	16,941
Nonperforming loans to loans at end of period - non-acquired			0.61	%			0.41	%			0.43	%			0.38	%			0.39	%
Nonperforming loans to loans at end of period - acquired			0.88				0.81				0.78				0.64				1.09
Allowance for loan losses to nonperforming loans - non-acquired			144.98				218.10				209.75				237.40				244.84
Total nonperforming loans to loans at end of period			0.66				0.50				0.51				0.42				0.52
Nonperforming assets to total assets - non-acquired			0.39	%			0.30	%			0.32	%			0.31	%			0.33	%
Nonperforming assets to total assets - acquired			0.19				0.20				0.15				0.10				0.16
Total nonperforming assets to total assets			0.58				0.50				0.47				0.40				0.49
Average Balances
Total average assets		$	5,878,035			$	5,851,688			$	5,716,230			$	5,316,119			$	5,082,002
Less: Intangible assets			166,393				167,136				149,432				118,364				114,563
Total average tangible assets		$	5,711,642			$	5,684,552			$	5,566,798			$	5,197,755			$	4,967,439
Total average equity		$	709,674			$	695,240			$	657,100			$	587,919			$	567,448
Less: Intangible assets			166,393				167,136				149,432				118,364				114,563
Total average tangible equity		$	543,281			$	528,104			$	507,668			$	469,555			$	452,885
			June 30,				March 31,				December 31,				September 30,				June 30,
LOANS			2018				2018				2017				2017				2017
Construction and land development		$	359,070			$	374,244			$	343,125			$	245,151			$	230,574
Commercial real estate - Owner Occupied			812,306				796,898				791,408				688,224				654,783
Commercial real estate - Non-Owner Occupied			888,989				848,341				848,584				789,867				809,285
Residential real estate			1,103,946				1,065,152				1,038,810				941,169				991,144
Consumer			190,835				195,788				189,436				185,122				179,151
Commercial and financial			618,870				616,702				606,014				535,457				465,138
Total Loans		$	3,974,016			$	3,897,125			$	3,817,377			$	3,384,990			$	3,330,075

 

 

 

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

 

			2Q'18												1Q'18												2Q'17
			Average								Yield/				Average								Yield/				Average								Yield/
(Dollars in thousands)			Balance				Interest				Rate				Balance				Interest				Rate				Balance				Interest				Rate
Assets
Earning assets:
Securities:
Taxable		$	1,324,280			$	9,389				2.84	%		$	1,361,277			$	9,361				2.75	%		$	1,261,017			$	8,379				2.66	%
Nontaxable			32,055				273				3.41				32,640				307				3.76				28,092				316				4.50
Total Securities			1,356,335				9,662				2.85				1,393,917				9,668				2.77				1,289,109				8,695				2.70
Federal funds sold and other
investments			49,387				585				4.75				56,173				616				4.45				72,535				604				3.34
Loans, net			3,948,460				46,549				4.73				3,872,369				45,284				4.74				3,266,812				38,263				4.70
Total Earning Assets			5,354,182				56,796				4.25				5,322,459				55,568				4.23				4,628,456				47,562				4.12
Allowance for loan losses			(29,234	)											(27,469	)											(25,276	)
Cash and due from banks			110,549												113,899												99,974
Premises and equipment			64,445												65,932												59,415
Intangible assets			166,393												167,136												114,563
Bank owned life insurance			121,008												122,268												87,514
Other assets			90,692												87,463												117,356
Total Assets		$	5,878,035											$	5,851,688											$	5,082,002
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand		$	996,929			$	492				0.20			$	1,001,672			$	450				0.18			$	949,981			$	262				0.11
Savings			439,691				118				0.11				435,433				104				0.10				378,989				51				0.05
Money market			1,027,705				1,378				0.54				976,498				984				0.41				868,427				541				0.25
Time deposits			790,404				2,629				1.33				776,807				2,179				1.14				432,805				814				0.75
Federal funds purchased and
securities sold under agreements to repurchase			179,540				334				0.75				175,982				274				0.63				174,715				194				0.45
Federal Home Loan Bank borrowings			160,846				741				1.85				276,389				1,030				1.51				323,780				780				0.97
Other borrowings			70,623				810				4.60				70,550				694				3.99				70,343				600				3.42
Total Interest-Bearing Liabilities			3,665,738				6,502				0.71				3,713,331				5,715				0.62				3,199,040				3,242				0.41
Noninterest demand			1,473,331												1,413,967												1,283,255
Other liabilities			29,292												29,150												32,259
Total Liabilities			5,168,361												5,156,448												4,514,554
Shareholders' equity			709,674												695,240												567,448
Total Liabilities & Equity		$	5,878,035											$	5,851,688											$	5,082,002
Interest expense as a % of earning assets											0.49												0.44												0.28
Net interest income as a % of earning assets						$	50,294				3.77	%						$	49,853				3.80	%						$	44,320				3.84	%

 

(1)

On a fully taxable equivalent basis. All yields and rates have been computed on an annualized basis using amortized cost. Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.

 

 

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

 

		June 30,				March 31,				December 31,				September 30,				June 30,
(Dollars in thousands)		2018				2018				2017				2017				2017
Customer Relationship Funding
Noninterest demand
Commercial		$	1,154,225			$	1,163,119			$	1,073,539			$	997,749			$	995,720
Retail			236,838				252,055				253,454				217,809				238,506
Public funds			44,182				49,014				50,837				43,686				47,691
Other			28,407				24,073				22,397				24,874				26,541
			1,463,652				1,488,261				1,400,227				1,284,118				1,308,458
Interest-bearing demand
Commercial			181,646				164,359				157,272				156,176				155,178
Retail			681,615				700,262				702,616				670,705				659,906
Public funds			113,020				150,433				190,867				108,216				119,777
			976,281				1,015,054				1,050,755				935,097				934,861
Total transaction accounts
Commercial			1,335,871				1,327,478				1,230,811				1,153,925				1,150,898
Retail			918,453				952,317				956,070				888,514				898,412
Public funds			157,202				199,447				241,704				151,902				167,468
Other			28,407				24,073				22,397				24,874				26,541
			2,439,933				2,503,315				2,450,982				2,219,215				2,243,319
Savings			444,736				437,878				434,346				379,499				376,825
Money market
Commercial			408,005				410,527				375,471				360,567				351,871
Retail			522,783				522,882				471,086				431,325				427,575
Public funds			92,382				102,122				84,901				78,896				81,673
			1,023,170				1,035,531				931,458				870,788				861,119
Time certificates of deposit			789,601				742,819				775,934				643,098				494,195
Total Deposits		$	4,697,440			$	4,719,543			$	4,592,720			$	4,112,600			$	3,975,458
Customer sweep accounts		$	200,050			$	173,249			$	216,094			$	142,153			$	167,558
Total core customer funding (1)		$	4,107,889			$	4,149,973			$	4,032,880			$	3,611,655			$	3,648,821

 

(1)

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

 

 

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.

 

 

		Quarterly Trends																				YTD
																						June 30,				June 30,
(Dollars in thousands except per share data)			2Q'18			1Q'18				4Q'17				3Q'17				2Q'17				2018				2017
Net income		$	16,964			$	18,027			$	13,047			$	14,216			$	7,676			$	34,991			$	15,602
Gain on sale of VISA stock			0				0				(15,153	)			0				0				0				0
Securities (gains)/losses, net			48				102				(112	)			47				(21	)			150				(21	)
Total Adjustments to Revenue			48				102				(15,265	)			47				(21	)			150				(21	)
Merger related charges			695				470				6,817				491				5,081				1,165				5,614
Amortization of intangibles			1,004				989				963				839				839				1,993				1,558
Business continuity expenses - Hurricane Irma			0				0				0				352				0				0				0
Branch reductions and other expense initiatives			0				0				0				(127	)			1,876				0				4,448
Total Adjustments to Noninterest Expense			1,699				1,459				7,780				1,555				7,796				3,158				11,620
Effective tax rate on adjustments			(443	)			(538	)			3,147				(673	)			(2,786	)			(981	)			(4,266	)
Effect of change in corporate tax rate			0				248				8,552				0				0				248				0
Adjusted Net Income		$	18,268			$	19,298			$	17,261			$	15,145			$	12,665			$	37,566			$	22,935
Earnings per diluted share, as reported			0.35				0.38				0.28				0.32				0.18				0.73				0.38
Adjusted Earnings per Diluted Share			0.38				0.40				0.37				0.35				0.29				0.79				0.55
Average shares outstanding (000)			47,974				47,688				46,473				43,792				43,556				47,828				41,539
Revenue		$	62,928			$	62,058			$	74,868			$	57,183			$	54,644			$	124,985			$	102,714
Total Adjustments to Revenue			48				102				(15,265	)			47				(21	)			150				(21	)
Adjusted Revenue			62,976				62,160				59,603				57,230				54,623				125,135				102,693
Noninterest Expense			38,246				37,164				39,184				34,361				41,625				75,410				76,371
Total Adjustments to Noninterest Expense			1,699				1,459				7,780				1,555				7,796				3,158				11,620
Adjusted Noninterest Expense			36,547				35,705				31,404				32,806				33,829				72,252				64,751
Adjusted Noninterest Expense			36,547				35,705				31,404				32,806				33,829				72,252				64,751
Foreclosed property expense and net (gain)/loss on sale			405				192				(7	)			(296	)			297				597				4
Net Adjusted Noninterest Expense			36,142				35,513				31,411				33,102				33,532				71,655				64,747
Adjusted Revenue			62,976				62,160				59,603				57,230				54,623				125,135				102,693
Impact of FTE adjustment			87				91				174				154				164				178				375
Adjusted Revenue on a fully taxable equivalent basis			63,063				62,251				59,777				57,384				54,787				125,313				103,068
Adjusted Efficiency Ratio			57.3	%			57.1	%			52.6	%			57.7	%			61.2	%			57.2	%			62.8	%
Average Assets		$	5,878,035			$	5,851,688			$	5,716,230			$	5,316,119			$	5,082,002			$	5,864,934			$	4,891,929
Less average goodwill and intangible assets			(166,393	)			(167,136	)			(149,432	)			(118,364	)			(114,563	)			(166,762	)			(96,819	)
Average Tangible Assets			5,711,642				5,684,552				5,566,798				5,197,755				4,967,439				5,698,172				4,795,110
Return on Average Assets (ROA)			1.16	%			1.25	%			0.91	%			1.06	%			0.61	%			1.20	%			0.64	%
Impact of removing average intangible assets and related amortization			0.08				0.09				0.06				0.06				0.05				0.09				0.06
Return on Tangible Average Assets (ROTA)			1.24				1.34				0.97				1.12				0.66				1.29				0.70
Impact of other adjustments for Adjusted Net Income			0.04				0.04				0.26				0.04				0.36				0.04				0.26
Adjusted Return on Average Tangible Assets			1.28				1.38				1.23				1.16				1.02				1.33				0.96
Average Shareholders' Equity		$	709,674			$	695,240			$	657,100			$	587,919			$	567,448			$	702,497			$	517,425
Less average goodwill and intangible assets			(166,393	)			(167,136	)			(149,432	)			(118,364	)			(114,563	)			(166,762	)			(96,819	)
Average Tangible Equity			543,281				528,104				507,668				469,555				452,885				535,735				420,606
Return on Average Shareholders' Equity			9.6	%			10.5	%			7.9	%			9.6	%			5.4	%			10.0	%			6.1	%
Impact of removing average intangible assets and related amortization			3.5				3.9				2.8				2.9				1.9				3.7				1.8
Return on Average Tangible Common Equity (ROTCE)			13.1				14.4				10.7				12.5				7.3				13.7				7.9
Impact of other adjustments for Adjusted Net Income			0.4				0.4				2.8				0.3				3.9				0.4				3.1
Adjusted Return on Average Tangible Common Equity			13.5				14.8				13.5				12.8				11.2				14.1				11.0