Seacoast Reports Improvements For The Fourth Quarter

STUART, Fla., Jan. 24, 2013 /PRNewswire/ --  

Profitability improvement plan on target  

  • Core costs down $625,000 in the fourth quarter, comparable with core cost reductions of $727,000 in the third quarter (versus second quarter 2012)
  • Targeting $7.4 million in reduced expenses in 2013

Continued acceleration in new households, deposit and fee income growth

  • Total households increase 9.4 percent year over year
  • Strong growth in noninterest bearing deposits of 28.8 percent over prior year
  • Fee based revenues up 14.9 percent year over year for the fourth quarter

Credit quality improvements continue in the quarter

  • Nonperforming loans decline by 7.9 percent compared to last quarter
  • Other real estate owned down 43.2 percent compared to 2011

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

(Logo: http://photos.prnewswire.com/prnh/20050916/SEACOASTLOGO )

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

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

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

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

Highlights for the quarter:

  • In the fourth quarter loans increased $23.6 million or 7.9 percent annualized reflecting improving commercial and consumer loan production, as well as, continued strong residential mortgage production;
  • Mortgage banking fees for the quarter increased by $350,000 or 51.5% compared to 2011 and totaled $3.7 million for the year compared to $2.1 million for last year, up 73.4%;
  • Interchange fees and service charges on deposit accounts grew by 21.4% and 4.9%, respectively, compared with last year's fourth quarter, reflecting strong growth in our core customer franchise;
  • Ending noninterest bearing demand deposits increased by $94.5 million or 28.8 percent for the year and 13.4 percent annualized linked quarter on continued strong core retail and commercial account growth;
  • Nonperforming loans declined by 7.9 percent compared to last quarter and nonperforming assets to total assets declined to 2.43 percent from 2.56 percent for the third quarter 2012;
  • Savings, NOW and money market deposits increased $91.2 million linked quarter or 9.8 percent, in part reflecting a seasonal increase in local municipalities' deposits, which are up $95.9 million compared to a year ago; and
  • The improved deposit mix resulted in a decline of 6 and 36 basis points in the cost of deposits compared to the third quarter and fourth quarter a year ago, respectively.

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








2012 vs 2011

Change


2012 vs 2010

Change


(Dollars in thousands)

2012

Fourth

Quarter


2011

Fourth

Quarter


2010

Fourth

Quarter




Customer Relationship Funding











      Demand deposits (noninterest bearing)

$    422,833


$    328,356


$     289,621


28.8

%

46.0

%

      NOW

509,371


469,631


401,005


8.5


27.0


      Savings deposits

164,956


133,578


113,082


23.5


45.9


      Money market accounts

343,915


319,152


298,538


7.8


15.2


      Time certificates of deposit

317,886


468,024


534,982


(32.1)


(40.6)


            Total Deposits

$ 1,758,961


$ 1,718,741


$  1,637,228


2.3


7.4


      Sweep repurchase agreements

$    136,803


$    136,252


$       98,213


0.4


39.3


      Total core customer funding (1)

$ 1,577,878


$ 1,386,969


$  1,200,459


13.8


31.4


Demand deposit mix (noninterest bearing)

24.0

%

19.1

%

17.7

%





Total checking and savings deposit mix (2)

81.9

%

72.8

%

67.3

%
















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




(2) Total deposits less time certificates.







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

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

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

(Dollars in thousands)

Q-4
2012

Q-3
2012

Q-2
2012

Q-1
2012

Q-4

2011

Noninterest Income:






Service charges on deposit accounts

$1,677

$1,620

$1,487

$1,461

$1,599

Trust income

592

550

564

573

530

Mortgage banking fees

1,030

1,155

902

623

680

Brokerage commissions and fees

292

247

298

234

258

Marine finance fees

258

279

244

330

333

Interchange income

1,157

1,119

1,154

1,071

953

Other deposit based EFT fees

83

70

84

99

78

Other

520

639

486

546

452

   Total

5,609

5,679

5,219

4,937

4,883

Change in fair value of loans available for sale

(1,238)

0

0

0

0

Securities gains

582

48

3,615

3,374

1,083


$4,953

$5,727

$8,834

$8,311

$5,966

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

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

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

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

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

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

Core operating expense trends are presented in the table below:

(Dollars in thousands)


Q-4

 2012

Q-3

2012

Q-2

2012

Q-1

2012

Q-4

2011

Noninterest Expense:














Salaries and wages


$7,259

$7,442

$7,435

$7,055

$6,889

Employee benefits


1,860

1,924

1,916

2,010

1,447

Outsourced data processing costs


1,904

1,923

1,834

1,721

1,677

Telephone / data lines


293

299

297

289

285

Occupancy expense


1,896

1,876

1,943

1,882

1,795

Furniture and equipment expense


585

556

607

495

525

Marketing expense


707

785

677

926

947

Legal and professional fees


1,114

1,122

1,637

1,776

1,299

FDIC assessments


697

695

707

706

679

Amortization of intangibles


195

196

196

201

212

Other


2,428

2,018

2,314

2,163

2,264

   Total Core Operating Expense


18,938

18,836

19,563

19,224

18,019








Severance and organizational changes


84

839

0

0

412

Branch consolidation


407

232

0

0

0

Recovery of prior legal fees


0

(500)

0

0

0

Net loss on OREO


157

561

790

1,959

1,254

Asset dispositions expense


200

364

368

527

275

   Total


$19,785

$20,332

$20,721

$21,710

$19,960

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

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

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

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

Cautionary Notice Regarding Forward-Looking Statements

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

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

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

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2011 under "Special Cautionary Notice Regarding Forward-Looking Statements" and "Risk Factors", and otherwise in our SEC reports and filings.  Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov.

FINANCIAL HIGHLIGHTS

(Unaudited)








SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
















Three Months Ended


Twelve Months Ended


(Dollars in thousands, except share data)

December 31,


December 31,



2012


2011


2012


2011


Summary of Earnings









Net income (loss)

$ 240


$ 2,548


$ (710)


$ 6,667


Net income (loss) available to common shareholders

(697)


1,611


(4,458)


2,919











Net interest income (1)

16,254


17,020


64,990


67,059











Performance Ratios









Return on average assets-GAAP basis (2), (3)

0.05

%

0.48

%

(0.03)

%

0.32

%

Return on average tangible assets (2), (3), (4)

0.07


0.51


(0.01)


0.35











Return on average shareholders' equity-GAAP basis (2), (3)

0.58


6.17


(0.43)


4.03











Net interest margin (1), (2)

3.22


3.42


3.22


3.42











Per Share Data









Net income (loss) diluted-GAAP basis

$ (0.01)


$ 0.02


$ (0.05)


$ 0.03


Net income (loss) basic-GAAP basis

(0.01)


0.02


(0.05)


0.03











Cash dividends declared

0.00


0.00


0.00


0.00























December 31,

Increase/





2012


2011


(Decrease)


Credit Analysis









Net charge-offs year-to-date



$ 14,257


$ 14,153


0.7

%

Net charge-offs to average loans



1.16

%

1.16

%

0.0


Loan loss provision year-to-date



$ 10,796


$ 1,974


446.9


Allowance to loans at end of period



1.80

%

2.12

%

(15.1)











Nonperforming loans



$ 40,955


$ 28,526


43.6


Other real estate owned



11,887


20,946


(43.2)


Total non-performing assets



$ 52,842


$ 49,472


6.8











Restructured loans (accruing)



$ 41,946


$ 71,611


(41.4)











Nonperforming assets to loans and other real









estate owned at end of period



4.27

%

4.03

%

6.0











Nonperforming assets to total assets



2.43

%

2.31

%

5.2











Selected Financial Data









Total assets



$ 2,173,929


$ 2,137,375


1.7


Securities available for sale (at fair value)



643,050


648,362


(0.8)


Securities held for investment (at amortized cost)



13,818


19,977


(30.8)


Net loans



1,203,977


1,182,509


1.8


Deposits



1,758,961


1,718,741


2.3


Total shareholders' equity



165,546


170,077


(2.7)


Common shareholders' equity



116,800


122,580


(4.7)


Book value per share common



1.23


1.29


(4.7)


Tangible book value per share



1.73


1.77


(2.3)


Tangible common book value per share (5)



1.22


1.27


(3.9)


Average shareholders' equity to average assets



7.81

%

8.01

%

(2.5)


Tangible common equity to tangible assets (5), (6)



5.31


5.63


(5.7)











Average Balances (Year-to-Date)









Total assets



$ 2,117,075


$ 2,063,684


2.6


Less: intangible assets



1,889


2,708


(30.2)


Total average tangible assets



$ 2,115,186


$ 2,060,976


2.6











Total equity



$ 165,381


$ 165,296


0.1


Less: intangible assets



1,889


2,708


(30.2)


Total average tangible equity



$ 163,492


$ 162,588


0.6





























(1) Calculated on a fully taxable equivalent basis using amortized cost.

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

(3) The calculation of ROA and ROE do not include the mark-to-market unrealized gains (losses) because

the unrealized gains (losses) are not included in net income (loss).

(4) The Company believes that return on average assets and equity excluding the impacts of noncash amortization

expense on intangible assets is a better measurement of the Company's trend in earnings growth.

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

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

n/m = not meaningful



















CONDENSED CONSOLIDATED STATEMENTS OF INCOME


(Unaudited)





SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES















Three Months Ended


Twelve Months Ended


December 31,


December 31,

(Dollars in thousands, except per share data)

2012


2011


2012


2011









Interest on securities:








Taxable

$ 3,130


$ 4,499


$ 13,964


$ 17,500

Nontaxable

12


17


80


140

Interest and fees on loans

14,438


15,351


58,290


62,355

Interest on federal funds sold and other investments

226


191


953


797

Total Interest Income

17,806


20,058


73,287


80,792









Interest on deposits

275


531


1,522


2,371

Interest on time certificates

598


1,826


3,969


8,615

Interest on borrowed money

725


727


2,987


2,967

Total Interest Expense

1,598


3,084


8,478


13,953









Net Interest Income

16,208


16,974


64,809


66,839

Provision for loan losses

1,136


432


10,796


1,974

Net Interest Income After Provision for Loan Losses

15,072


16,542


54,013


64,865









Noninterest income:








Service charges on deposit accounts

1,677


1,599


6,245


6,262

Trust income

592


530


2,279


2,111

Mortgage banking fees

1,030


680


3,710


2,140

Brokerage commissions and fees

292


258


1,071


1,122

Marine finance fees

258


333


1,111


1,209

Interchange income

1,157


953


4,501


3,808

Other deposit based EFT fees

83


78


336


318

Other

520


452


2,191


1,375


5,609


4,883


21,444


18,345

Change in fair value of loan held for sale

(1,238)


0


(1,238)


0

Securities gains, net

582


1,083


7,619


1,220

Total Noninterest Income

4,953


5,966


27,825


19,565









Noninterest expenses:








Salaries and wages

7,342


7,301


29,935


27,288

Employee benefits

1,860


1,447


7,710


5,875

Outsourced data processing costs

1,904


1,677


7,382


6,583

Telephone / data lines

293


285


1,178


1,179

Occupancy

2,241


1,795


8,146


7,627

Furniture and equipment

647


525


2,319


2,291

Marketing

707


947


3,095


2,917

Legal and professional fees

1,114


1,299


5,241


6,137

FDIC assessments

697


679


2,805


3,013

Amortization of intangibles

195


212


788


847

Asset dispositions expense

200


275


1,459


2,281

Net loss on other real estate owned and repossessed assets

157


1,254


3,467


3,751

Other

2,428


2,264


9,023


7,974

Total Noninterest Expenses

19,785


19,960


82,548


77,763









Income (Loss) Before Income Taxes

240


2,548


(710)


6,667

Provision for income taxes

0


0


0


0









Net Income (Loss)

240


2,548


(710)


6,667

Preferred stock dividends and accretion on preferred stock discount

937


937


3,748


3,748

Net Income (Loss) Available to Common Shareholders

$ (697)


$ 1,611


$ (4,458)


$ 2,919









Per share of common stock:
















Net income (loss) diluted

$ (0.01)


$ 0.02


$ (0.05)


$ 0.03

Net income (loss) basic

(0.01)


0.02


(0.05)


0.03

Cash dividends declared

0.00


0.00


0.00


0.00









Average diluted shares outstanding

94,606,884


94,364,433


94,505,805


93,801,073

Average basic shares outstanding

93,909,930


93,570,748


93,743,787


93,511,983

















CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)




SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES









December 31,


December 31,


(Dollars in thousands, except share data)

2012


2011







Assets





Cash and due from banks

$ 45,620


$ 41,136


Interest bearing deposits with other banks

129,367


125,945


Total Cash and Cash Equivalents

174,987


167,081







Securities:





Available for sale (at fair value)

643,050


648,362


Held for investment (at amortized cost)

13,818


19,977


Total Securities

656,868


668,339







Loans available for sale

36,021


6,795







Loans, net of deferred costs

1,226,081


1,208,074


Less: Allowance for loan losses

(22,104)


(25,565)


Net Loans

1,203,977


1,182,509







Bank premises and equipment, net

34,465


34,227


Other real estate owned

11,887


20,946


Other intangible assets

1,501


2,289


Other assets

54,223


55,189



$ 2,173,929


$ 2,137,375







Liabilities and Shareholders' Equity





Liabilities





Deposits





Demand deposits (noninterest bearing)

$ 422,833


$ 328,356


NOW

509,371


469,631


Savings deposits

164,956


133,578


Money market accounts

343,915


319,152


Other time certificates

182,495


244,886


Brokered time certificates

8,203


4,558


Time certificates of $100,000 or more

127,188


218,580


Total Deposits

1,758,961


1,718,741







Federal funds purchased and securities sold under





agreements to repurchase, maturing within 30 days

136,803


136,252


Borrowed funds

50,000


50,000


Subordinated debt

53,610


53,610


Other liabilities

9,009


8,695



2,008,383


1,967,298







Shareholders' Equity





Preferred stock - Series A

48,746


47,497


Common stock

9,484


9,469


Additional paid in capital

222,851


222,048


Accumulated deficit

(118,611)


(114,152)


Treasury stock

(62)


(13)



162,408


164,849


Accumulated other comprehensive gain, net

3,138


5,228


Total Shareholders' Equity

165,546


170,077



$ 2,173,929


$ 2,137,375







Common Shares Outstanding

94,837,170


94,686,801







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












CONSOLIDATED QUARTERLY FINANCIAL DATA



(Unaudited)








SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES




















QUARTERS




2012

Last 12


(Dollars in thousands, except per share data)

Fourth

Third

Second

First

Months


Net income

$ 240


$ 447


$ (2,335)


$ 938


$ (710)













Operating Ratios











Return on average assets-GAAP basis (2),(3)

0.05

%

0.08

%

(0.44)

%

0.18

%

(0.03)

%

Return on average tangible assets (2),(3),(4)

0.07


0.11


(0.42)


0.20


(0.01)













Return on average shareholders' equity-GAAP basis (2),(3)

0.58


1.09


(5.56)


2.26


(0.43)













Net interest margin (1),(2)

3.22


3.17


3.17


3.33


3.22


Average equity to average assets

7.73


7.77


7.90


7.85


7.81













Credit Analysis











Net charge-offs

$ 2,151


$ 2,416


$ 6,275


$ 3,415


$ 14,257


Net charge-offs to average loans

0.69

%

0.79

%

2.05

%

1.13

%

1.16

%

Loan loss provision

$ 1,136


$ 900


$ 6,455


$ 2,305


$ 10,796


Allowance to loans at end of period

1.80

%

1.92

%

2.02

%

2.01

%














Restructured loans (accruing)

$ 41,946


44,179


54,842


57,665















Nonperforming loans

$ 40,955


44,450


48,482


41,716




Other real estate owned

11,887


8,888


7,219


15,530




Nonperforming assets

$ 52,842


$ 53,338


$ 55,701


$ 57,246




Nonperforming assets to loans and other











real estate owned at end of period

4.27

%

4.40

%

4.53

%

4.65

%



Nonperforming assets to total assets

2.43


2.56


2.64


2.64




Nonaccrual loans and accruing loans 90 days or more











past due to loans outstanding at end of period

3.34


3.70


3.97


3.43















Per Share Common Stock











Net income (loss) diluted-GAAP basis

$ (0.01)


$ (0.01)


$ (0.03)


$ 0.00


$ (0.05)


Net income (loss) basic-GAAP basis

(0.01)


(0.01)


(0.03)


0.00


$ (0.05)













Cash dividends declared

-


-


-


-


$ -


Book value per share common

1.23


1.25


1.24


1.30















Average Balances











Total assets

$ 2,111,986


$ 2,096,694


$ 2,133,713


$ 2,126,186




Less: Intangible assets

1,596


1,793


1,988


2,184




Total average tangible assets

$ 2,110,390


$ 2,094,901


$ 2,131,725


$ 2,124,002















Total equity

$ 163,341


$ 162,902


$ 168,457


$ 166,874




Less: Intangible assets

1,596


1,793


1,988


2,184




Total average tangible equity

$ 161,745


$ 161,109


$ 166,469


$ 164,690















(1) Calculated on a fully taxable equivalent basis using amortized cost.


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


(3) The calculation of ROA and ROE do not include the mark-to-market unrealized gains (losses), because the unrealized gains (losses)

are not included in net income (loss).

(4) The Company believes that return on average assets and equity excluding the impacts of noncash amortization

expense on intangible assets is a better measurement of the Company's trend in earnings growth.




























December 31,


December 31,




SECURITIES





2012


2011




Mortgage-backed











U.S. Treasury and U.S. Government Agencies





$ 1,707


$ 1,724




Mortgage-backed





640,445


645,471




Obligations of states and political subdivisions





898


1,167




Other securities





0


0




Securities Available for Sale





643,050


648,362















Mortgage-backed





5,965


12,315




Obligations of states and political subdivisions





6,353


6,662




Other securities





1,500


1,000




Securities Held for Investment





13,818


19,977




Total Securities





$ 656,868


$ 668,339































December 31,


December 31,




LOANS





2012


2011




Construction and land development





$ 60,736


$ 49,184




Real estate mortgage





1,056,159


1,054,599




Installment loans to individuals





46,930


50,611




Commercial and financial





61,903


53,105




Other loans





353


575




Total Loans





$ 1,226,081


$ 1,208,074
















































AVERAGE BALANCES, YIELDS AND RATES (1)

(Unaudited)









SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES



















2012


2011



Fourth Quarter


Third Quarter


Fourth Quarter


Average

Yield/


Average

Yield/


Average

Yield/


(Dollars in thousands)

Balance

Rate


Balance

Rate


Balance

Rate












Assets










Earning assets:










Securities:










Taxable

$ 604,412

2.07

%

$ 572,328

2.23

%

$ 614,939

2.93

%

Nontaxable

1,670

4.31


1,972

6.49


2,591

4.17


Total Securities

606,082

2.08


574,300

2.24


617,530

2.93












Federal funds sold and other










investments

162,599

0.55


209,461

0.46


147,017

0.52












Loans, net

1,241,711

4.64


1,223,313

4.68


1,210,028

5.05












Total Earning Assets

2,010,392

3.53


2,007,074

3.54


1,974,575

4.04












Allowance for loan losses

(23,820)



(24,807)



(27,689)



Cash and due from banks

39,321



29,227



35,312



Premises and equipment

34,566



35,003



34,517



Other assets

51,527



50,197



68,751














$ 2,111,986



$ 2,096,694



$ 2,085,466























Liabilities and Shareholders' Equity










Interest-bearing liabilities:










NOW (2)

$ 449,476

0.11

%

$ 419,007

0.15

%

$ 422,480

0.20

%

Savings deposits

161,156

0.09


157,577

0.11


131,554

0.11


Money market accounts (2)

346,089

0.13


350,213

0.21


325,111

0.34


Time deposits

330,556

0.72


358,504

0.82


475,666

1.52


Federal funds purchased and










other short term borrowings

131,628

0.23


140,932

0.24


127,956

0.22


Other borrowings

103,610

2.50


103,610

2.57


103,610

2.50












Total Interest-Bearing Liabilities

1,522,515

0.42


1,529,843

0.49


1,586,377

0.77












Demand deposits (noninterest-bearing)

416,482



394,467



326,215



Other liabilities

9,648



9,482



9,017



Total Liabilities

1,948,645



1,933,792



1,921,609













Shareholders' equity

163,341



162,902



163,857














$ 2,111,986



$ 2,096,694



$ 2,085,466













Interest expense as a % of earning assets


0.32

%


0.37

%


0.62

%

Net interest income as a % of earning assets


3.22



3.17



3.42
































(1) On a fully taxable equivalent basis. All yields and rates have been computed on an annualized basis using amortized cost.

Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.

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











CONSOLIDATED QUARTERLY FINANCIAL DATA



(Unaudited)






SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES




















2012


2011

(Dollars in thousands)

Fourth Quarter


Third Quarter


Second Quarter


First Quarter


Fourth Quarter












Customer Relationship Funding (Period End)










Demand deposits (noninterest bearing)

$ 422,833


$ 409,145


$ 393,681


$ 394,532


$ 328,356

NOW accounts

509,371


420,477


420,449


436,712


469,631

Money market accounts

343,915


348,275


346,191


330,409


319,152

Savings savings accounts

164,956


158,208


156,019


148,068


133,578

Time certificates of deposit

317,886


343,361


373,244


427,738


468,024

Total Deposits

1,758,961


1,679,466


1,689,584


1,737,459


1,718,741












Sweep repurchase agreements

136,803


122,393


139,489


149,316


136,252

Total core customer funding (1)

1,577,878


1,458,498


1,455,829


1,459,037


1,386,969























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













QUARTERLY TRENDS - LOANS AT END OF PERIOD (Dollars in Millions)


(Unaudited)



SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


















2011


2012


1st Qtr

2nd Qtr

3rd Qtr

4th Qtr


1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Construction and land development










Residential










Condominiums

$ 0.5

$ -

$ -

$ -


$ -

$ -

$ -

$ -

Townhomes

-

-

-

-


-

-

-

-

Single family residences

-

-

-

-


-

-

-

-

Single family land and lots

6.6

6.5

6.4

6.2


6.0

5.9

5.8

5.6

Multifamily

6.1

5.7

5.5

5.1


4.9

4.7

4.6

4.3


13.2

12.2

11.9

11.3


10.9

10.6

10.4

9.9

Commercial










Office buildings

-

-

-

0.2


0.3

-

-

-

Retail trade

-

-

-

-


-

-

-

-

Land

33.9

10.3

10.2

9.3


9.2

10.7

9.8

9.6

Industrial

-

-

-

-


-

-

-

-

Healthcare

-

-

-

-


-

-

-

1.8

Churches and educational facilities

-

-

-

0.1


0.3

0.3

0.7

0.5

Lodging

-

-

-

-


-

-

-

-

Convenience stores

0.5

0.6

0.6

1.7


1.4

1.4

-

-

Marina

-

-

-

-


-

-

-

-

Other

-

-

-

-


-

-

-

-


34.4

10.9

10.8

11.3


11.2

12.4

10.5

11.9

Individuals










Lot loans

20.8

19.4

18.6

17.9


18.4

17.6

16.4

16.7

Construction

7.3

6.7

6.4

8.7


13.5

16.6

18.9

22.2


28.1

26.1

25.0

26.6


31.9

34.2

35.3

38.9

Total construction and land development

75.7

49.2

47.7

49.2


54.0

57.2

56.2

60.7











Real estate mortgages










Residential real estate










Adjustable

308.6

314.3

324.4

334.1


341.6

359.4

353.7

361.0

Fixed rate

86.6

88.8

92.8

97.0


96.2

95.4

99.7

99.0

Home equity mortgages

67.7

63.1

63.6

60.2


59.5

58.3

58.4

58.0

Home equity lines

57.4

56.9

55.1

54.9


53.0

50.8

50.6

51.4


520.3

523.1

535.9

546.2


550.3

563.9

562.4

569.4

Commercial real estate










Office buildings

121.3

120.0

122.0

119.6


118.0

113.4

102.4

104.7

Retail trade

150.6

149.6

146.1

140.6


139.3

128.5

121.1

126.7

Industrial

76.3

68.5

72.5

70.7


70.0

72.0

71.3

72.6

Healthcare

26.6

26.3

29.6

38.8


40.2

42.0

35.8

40.7

Churches and educational facilities

28.6

28.2

27.8

27.4


27.0

26.7

26.2

28.6

Recreation

2.8

2.8

2.7

3.2


3.1

3.1

2.7

2.7

Multifamily

14.2

16.8

15.4

9.4


8.8

8.3

7.8

9.0

Mobile home parks

2.5

2.4

2.2

2.2


2.1

2.1

2.1

2.0

Lodging

21.7

20.0

19.8

19.6


19.4

19.3

19.1

18.7

Restaurant

4.2

4.3

4.3

4.7


4.6

4.7

4.4

3.5

Agricultural

9.2

9.2

8.9

8.8


7.6

7.4

7.3

6.1

Convenience stores

20.1

20.0

19.8

15.1


15.5

15.4

16.6

20.5

Marina

21.7

21.5

21.4

21.3


21.6

21.5

21.4

21.2

Other

27.4

27.3

26.9

27.0


29.3

29.3

35.6

29.8


527.2

516.9

519.4

508.4


506.5

493.7

473.8

486.8

Total real estate mortgages

1,047.5

1,040.0

1,055.3

1,054.6


1,056.8

1,057.6

1,036.2

1,056.2











Commercial & financial

51.5

48.0

53.5

53.1


54.6