Seacoast Q2 Net Income Rises More Than 200% Year-over-Year to $5.8 Million, or $0.18 per Share

Favorable Results Reflect Continued Revenue Growth from Accelerate Commercial Banking and Expanded Customer Acquisition, Cross-Selling and Efficiency Initiatives

Jul 23, 2015, 16:23 ET from Seacoast Banking Corporation of Florida

STUART, Fla., July 23, 2015 /PRNewswire/ --

Second Quarter 2015 Earnings Highlights

  • Revenues increased $1.5 million, or 4.5%, linked quarter to $34.5 million, and $11.9 million, or 53%, compared to Q2 2014,
  • Fee income increased $1.5 million, or 21%, sequentially and $3.0 million, or 50%, year-over-year,
  • Net interest margin increased 40 basis points year-over-year to 3.50%, reflecting improved balance sheet mix particularly due to increased lending,
  • Adjusted net income excluding merger costs and other adjustments1 increased 106% to $6.2 million, or $ 0.19 per diluted share, compared to $3.0 million, or $0.12 per diluted share, in Q2 2014.

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

Second Quarter 2015 Growth Highlights

  • Loans increased $83 million or 18% annualized compared to Q1 2015, and rose 45% year-over-year.  Excluding the acquisition of The BANKshares, loans increased $238 million or 18% compared to Q2 2014,
  • Total households increased a strong 5%, annualized from Q1 and 20% compared to Q2 2014.  Excluding BANKshares customers, year-over-year household growth was 5.3%,
  • Achieved record levels of business and consumer lending during the quarter, reflecting success in Accelerate Commercial Banking, as well as digitally-enabled marketing and cross-selling initiatives,
  • Closed the Grand Bancshares, Inc. acquisition and completed the conversion of Grand's customers over the July 17 weekend, adding approximately $190 million in deposits and $121 million in gross loans in the attractive Palm Beach market.

Seacoast Banking Corporation of Florida (NASDAQ: SBCF) today reported results for the second quarter of 2015.  Second quarter revenue rose $1.5 million, or 4.5%, to $34.5 million compared to $33.0 million in the prior quarter.  Net income increased $3.9 million, or 203%, to $5.8 million, compared to the second quarter of 2014, and decreased slightly from $5.9 million in the first quarter 2015. The company reported $0.18 diluted net income per common share compared with $0.07 in the second quarter last year, and $0.18 sequentially in the first quarter of 2015.

Net income improved 177% to $11.7 million, or $0.35 per diluted common share, for the first half of 2015 from $4.2 million, or $0.16 per diluted common share, for the first half of 2014.

"Our strategic focus on improving profitability, investing for growth and managing risk continues to yield consistent results, as demonstrated by our second quarter performance," said Dennis S. Hudson, III, Chairman and CEO.  "Investments to expand our Accelerate business banking platform, combined with increased digital marketing and cross sell efforts company-wide, are yielding strong results that demonstrate our value proposition and community bank approach are resonating in the marketplace."

"With our success comes additional expense, reflecting our growth and investment for the future," Hudson continued.  "These expenses include the addition of a receivables funding team from First Growth Capital (FGC), volume-related commissions, brand-based marketing in our Orlando markets and key senior management hires."

"We look forward to sustained growth as we leverage our recent acquisitions, most recently welcoming the customers and customer-serving associates from Grand Bancshares, Inc., which we successfully closed and integrated last week," Hudson concluded.

"Revenue increases drove the improvement in Seacoast's profitability and reflect significant organic growth, as well as benefits from acquisition activity," said Stephen A. Fowle, Executive Vice President and Chief Financial Officer.  "We continue to produce positive trends in loan production, fee income, and household growth, including record loan originations and record new household growth through the first half of the year.  During the quarter, we achieved outsized loan growth and strong fee income increases despite a seasonally slow quarter. Net interest income, taking into consideration an expected decrease in acquired loan accretion, also showed significant continued momentum."

FINANCIAL HIGHLIGHTS

(Dollars in thousands except per share data)

2Q15

1Q15

4Q14

3Q14

2Q14

Total Assets

$3,233,588

$3,231,956

$3,093,335

$2,361,813

$2,294,156

Loans

1,937,399

1,854,487

1,821,885

1,391,082

1,335,192

Deposits

2,605,177

2,609,825

2,416,534

1,808,550

1,805,537

Net Income (Loss) Available to Common  Shareholders

5,805

5,859

(1,517)

2,996

1,918

Diluted Earnings Per Share   

0.18

0.18

(0.05)

0.12

0.07

Return on Average Assets

0.72 %

0.75 %

(0.20 %)

0.52 %

0.33 %

Net Interest Margin

3.50

3.62

3.56

3.17

3.10

Efficiency Ratio

68.6

68.3

104.5

82.8

89.4

Pretax, Pre-provision Income (1)

$10,224

$9,832

($2,029)

$3,832

$1,938

 

Average Diluted Shares

     Outstanding (000)

33,234

33,136

33,124

26,026

25,998

Adjusted Net Income (1)

$6,172

$6,177

$4,179

$3,286

$2,990

Adjusted Diluted Earnings  

     Per Share (1)

0.19

0.19

0.13

0.13

0.12

Adjusted Return on Average Assets (1)

0.77 %

0.79 %

0.55 %

0.57 %

0.52 %

Adjusted Efficiency Ratio (1)

67.5

67.5

74.8

79.6

82.0

Adjusted Pretax, Pre-provision Income (1)

$10,815

$10,342

$7,464

$4,341

$3,821

Annualized Adjusted Core

     Operating Expenses as  

     a Percent of Average

     Assets (1)

2.91%

2.88%

3.13%

3.21%

3.24%

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

 

Acquisitions Update "Our 2014 acquisition of The BANKshares, continues to be a home run, opening the vibrant greater Orlando markets to us," said Hudson.  "Orlando remains one of the strongest markets in Florida, and we remain bullish on this area for growth and profitability."

"We are also excited to welcome the customers and customer-service team members from Grand Bancshares, Inc., which we successfully closed and integrated into our platform just last week," Hudson continued. "Our acquisition strategy is complementing our legacy banking business and is successfully adding new customers and opening new markets, fueling robust franchise growth."

Florida Economic Update "Our Florida markets, spanning much of the central Atlantic coastline and the greater Orlando markets, are growing at very healthy rates," said Hudson.  According to the June 2015 American Banker Magazine, "Florida is once again outgrowing the rest of the country, and some of its thriving community banks are emerging as real contenders to be the next state flagship." 

"Nonfarm employment rose on a year-over-year basis in 23 of Florida's 24 metropolitan areas and was unchanged in one area, Homosassa Springs.  The largest gains continue to be in the Orlando (47,200 new jobs), Tampa-St Petersburg (32,900 jobs) and Miami (27,900 jobs) metropolitan areas.  Fort Lauderdale (27,300 jobs), West Palm Beach (15,900 jobs) and Jacksonville (15,100 jobs) round out Florida's big 6 metro areas," according to the U.S. Department of Labor and Wells Fargo Securities, LLC.

"Our move into Orlando is going very well, and is providing excellent opportunities for growth," Hudson continued.  According to the Orlando Business Journal, "It was another record quarter for Florida tourism numbers, as the Sunshine State welcomed 28.4 million visitors in the first quarter, an increase of 6.2% over the same period a year ago.  (May 15, 2015)   "Visit Orlando reports that more than 62 million people visited Orlando in 2014, marking an all-time new record for the U.S. travel industry." (April 9, 2015) As an additional indication of the Orlando market growth, Orlando Realtors.org reported, "A leap in "normal" transactions has boosted Orlando area home sales more than 21% over June 2014 and to its highest number --3,435-- since the Orlando Regional REALTOR® Association began recording sales. In addition to skyrocketing sales, the median price for existing homes sold in June increased 7.73%."

Income Statement Highlights

Net Interest Income and Margin, up 40 basis points from 2Q14, Normalizes as Expected from the First Quarter Net interest income for the quarter totaled $25.8 million, a $9.0 million or 54% increase from second quarter 2014 levels.  Net interest income held flat with Q1 levels despite a significant amount of excess purchase loan accretion recognized in the first quarter.  Strong loan growth (a $55.0 million average balance increase) helped offset the impact of reduced purchased loan accretion.  Net interest margin increased 40 basis points from prior year levels to 3.50%.  Margin decreased twelve basis points sequentially, also related to purchased loan accretion.  Purchased loan accretion for the second quarter is near expected levels, although the timing of such loan accretion is expected to be unpredictable.   

Noninterest Income Boosted by New Account Growth Noninterest income increased $3.0 million or 50% from a year ago to $8.8 million and $1.5 million or 21% above the first quarter of 2015.  Year-over-year growth in all categories of service fee income reflects strength in customer acquisition and cross sell, as well as benefits of the successful BANKshares customer integration.  Linked-quarter noninterest income improvement was fueled by continued household growth.  Service charges on deposit accounts increased $113,000 and interchange income grew $296,000 from the first quarter of 2015.  Marine finance fees also grew $295,000 or 150% from the first quarter.  Adjusting for the gain on a participated loan of $725,000 during the quarter, fee income increased $813,000 or 11%.  Accounting treatment for $725,000 of discount accreted from the participated loan required this income to be included in other operating income rather than taken through the margin. 

Noninterest Expense Increases from Core Growth and Acquisition Seacoast's efficiency ratio improved to 68.6% in the second quarter of 2015 from 89.4% during the prior year.  This decrease is related to improved operating leverage, as strong revenue growth significantly outpaced expenses. 

Noninterest expense increased $3.6 million or 17% from prior year levels and $1.1 million or 5% from the first quarter 2015.  Year-over-year expense increases reflect the acquisition of The BANKshares, offset by planned expense reduction initiatives.  Linked quarter increases reflect investment in our franchise, and variable expenses related to a strong quarter of production. Notable increases include: the acquisition of FGC during the second quarter 2015 which contributed approximately $351,000 in expense; production-driven commission expense which added approximately $375,000; marketing expense focused on customer acquisition and for corporate branding in BANKshare's Orlando footprint which contributed $250,000 to the increase. 

Merger related expenses totaled $337,000 in the second quarter 2015 compared to $275,000 in the first quarter of 2015 and $1.2 million in the second quarter 2014.

Balance Sheet Highlights

Year-over-Year Deposit Growth Reflects Marketing Wins and Successful Acquisitions Total deposits increased 44.3% to $2.61 billion at June 30, 2015, from year ago levels.  Core customer funding increased to $2.47 billion at June 30, 2015, a $781.0 million increase from the second quarter of 2014.  Noninterest demand deposits grew $15.1 million, or 1.9% from the first quarter and $298.6 million or 58.6% from the second quarter of 2014.  As a result, noninterest demand deposits increased to 31.0% of total deposits, up from 28.2% one year ago.  Excluding the acquisition, core customer funding increased by $333.6 million or 19.8% from one year ago and total deposits increased $283.3 million or 15.7% from one year ago.  A 5% linked quarter household growth rate was offset by seasonal deposit balance decreases.

 

(Dollars in thousands)

Second Quarter

2015

First Quarter

2015

Fourth Quarter

2014

Third Quarter

2014

Second Quarter

2014

Customer Relationship Funding

      Noninterest demand  

$  808,429

$  793,336

$  725,238

$  522,001

$  509,798

      Interest-bearing demand

599,268

634,854

652,353

479,827

493,927

      Money market

621,973

596,600

450,172

344,726

335,246

      Savings

282,588

272,963

264,738

215,076

208,333

      Time certificates of deposit

292,919

312,072

324,033

246,920

258,233

            Total deposits

2,605,177

2,609,825

2,416,534

1,808,550

1,805,537

      Customer sweep accounts

157,676

170,023

153,640

124,436

141,662

      Total core customer funding (1)

2,469,934

2,467,776

2,246,141

1,686,066

1,688,966

  Demand deposit mix

 (noninterest bearing)

31.0%

30.4%

30.0%

28.9%

28.2%

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

 

Loan Growth and Pipelines at Trailing-Four-Quarter Highs Total loans were $1.94 billion at June 30, 2015, up $602.2 million from a year ago.  Excluding loans acquired in the BANKshares transaction, loans increased $237.9 million or 17.8% from the prior year's second quarter.

Commercial loan originations for the quarter were a strong $85.8 million, increasing $24.5 million or 39.9% over the first quarter and $32.6 million or 61.2% over the second quarter 2014. The commercial pipeline (in underwriting and approval or approved and not yet closed) totaled $108.5 million at June 30, 2015, yet again the highest in the trailing four quarters.

Closed residential production totaled $81.8 million compared to $55.8 million in the first quarter and $61.2 million in the second quarter of 2014. The residential pipeline continued to climb, totaling $53.9 million at June 30, 2015 compared to $48.5 million at March 31, 2014 and $28.3 million one year ago. Consumer loan and small business originations (inclusive of lines of credit) totaled $55.3 million in the second quarter of 2015 compared to $38.9 in the first quarter and $18.0 million one year ago.

 

(Dollars in thousands)

2Q 15

1Q15

4Q14

3Q14

2Q14

Commercial pipeline

$108,538

$82,143

$60,136

$45,534

$58,168

Commercial loans closed

85,815

61,357

94,719

72,630

53,250

Total Commercial loan originations and pipeline

$194,353

$143,500

$154,855

$118,164

$111,418

Residential pipeline

$53,902

$48,485

$21,351

$22,588

$28,345

Residential loans retained

45,596

23,951

31,598

31,781

33,203

Residential loans sold

36,182

31,896

26,336

34,228

27,994

Total Residential loan originations and pipeline

$135,680

$104,332

$79,285

$88,597

$89,542

Other Highlights

Credit Quality Maintains Strong Trends The provision for loan losses increased to $855,000 for the second quarter of 2015, up from a $1.4 million recapture in the second quarter 2014 and a $422,000 or 97% increase from $433,000 recorded in the first quarter 2015.  The second quarter provision is attributable to strong loan growth during the quarter.  The allowance for loan losses for non-acquired loans was 1.10% of total loans, compared to 1.13% in the first quarter 2015.

Additional highlights include:

  • Nonperforming loans to total loans outstanding at the end of the second quarter was 1.0%, down from 1.6% at June 30, 2014;
  • Nonperforming assets to total assets declined to 0.8%, compared to 1.2% a year ago.

Capital Ratios Continue to Improve from Earnings Momentum Tangible book value and book value per share each increased by $0.13 per share from the prior quarter to $8.87 and $9.84, respectively at the end of the second quarter.  Average tangible common equity to assets was a strong 9.24% for the second quarter 2015.

Conference Call Information Seacoast will host a conference call on Friday, July 24, 2015 at 1:00 p.m. (Eastern Time) to discuss the earnings results.  Investors may call in (toll-free) by dialing (888) 517-2513 (passcode: 7789246; host: Dennis S. Hudson). Slides will be used during the conference call and may be accessed at Seacoast's website at SeacoastBanking.com by selecting "Presentations" under the heading "Investor Services."  A replay of the call will be available for one month, beginning late afternoon of July 24, by dialing (888) 843-7419 (domestic), using the passcode 7789246.

Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast's website at SeacoastBanking.com. The link is located in the subsection "Presentations" under the heading "Investor Services." Beginning the afternoon of July 24, an archived version of the webcast can be accessed from this same subsection of the website.  The archived webcast will be available for one year.   

About Seacoast Banking Corporation of Florida (NASDAQ: SBCF) Seacoast Banking Corporation of Florida is one of the largest community banks headquartered in Florida with approximately $3.2 billion in assets and $2.6 billion in deposits as of June 30, 2015. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, 44 traditional branches of its locally-branded wholly-owned subsidiary bank, Seacoast Bank, and five commercial banking centers. Offices stretch from Ft. Lauderdale, Boca Raton and West Palm Beach north through the Space Coast of Florida, into Orlando and Central Florida, and west to Okeechobee and surrounding counties. More information about the Company is available at SeacoastBanking.com.

Sources: 

http://www.americanbanker.com/magazine/2015-06-01-1074530-1.html 

https://www08.wellsfargomedia.com/downloads/pdf/com/insights/economics/regional-reports/FL_Employment_07172015.pdf

http://www.floridatoday.com/story/news/local/2015/05/15/record-tourism-numbers-sunshine-state/27367565/

http://www.bizjournals.com/orlando/blog/2015/04/orlando-becomes-first-destination-to-surpass-60m.html

http://www.orlandorealtors.org/resource/resmgr/docs_market_pulse/MarketPulse072015.html       

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

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

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

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2014, under "Special Cautionary Notice Regarding Forward-looking Statements" and "Risk Factors", and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at  http://www.sec.gov.

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

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

(Dollars in thousands except per share data)

Second Quarter

 2015

First Quarter

 2015

Fourth Quarter

 2014

Third Quarter

 2014

Second Quarter

 2014

  

Net income

$5,805

$5,859

($1,517)

$2,996

$1,918

Severance

29

12

478

328

181

 

Merger related charges

337

275

2,722

399

1,234

 

Branch closure charges and costs related to expense initiatives

0

0

4,261

68

114

Marketing and brand refresh expense

0

0

697

0

0

 

Stock compensation expense and other incentive costs related to improved outlook

0

0

1,213

0

0

Security (gains)

0

0

(108)

(344)

0

Miscellaneous losses (gains)

0

0

119

(45)

144

Recovery of nonaccrual loan interest

0

0

0

(192)

0

Net loss on OREO and repossessed assets

53

81

9

156

92

Asset dispositions expense

173

143

103

139

118

Effective tax rate on adjustments

(225)

(193)

(3,798)

(219)

(811)

 

Adjusted Net Income (1)

6,172

6,177

4,179

3,286

2,990

Provision (recapture) for loan losses

855

433

118

(1,425)

(1,444)

Income taxes

3,788

3,732

3,167

2,480

2,275

Adjusted pretax, pre-provision income (1)

$10,815

$10,342

$7,464

$4,341

$3,821

Adjusted earnings per diluted share (1)

$0.19

$0.19

$0.13

$0.13

$0.12

Average shares outstanding (000)

33,234

33,136

33,124

26,026

25,998

(1)     Non-GAAP measure

 

 

FINANCIAL  HIGHLIGHTS 

(Unaudited)

SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES

(Dollars in thousands, except share data)

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

2015

2015

2014

2015

2014

Summary of Earnings

Net income (loss)

$             5,805

$         5,859

$           1,918

$           11,664

$           4,217

Net interest income  (1)

25,788

25,834

16,779

51,622

33,056

Net interest margin  (1), (2)

3.50

3.62

3.10

3.56

3.09

.

Performance Ratios

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

0.72

%

0.75

%

0.33

%

0.74

%

0.37

%

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

7.13

7.42

3.25

7.27

3.63

Return on average tangible shareholders' equity-GAAP basis (2), (3), (4)

8.20

8.51

3.47

8.35

3.86

Efficiency ratio (5)

68.57

68.33

89.42

68.45

86.91

Noninterest income to total revenue

25.63

22.13

26.06

23.92

25.80

Per Share Data

Net income (loss) diluted-GAAP basis

$               0.18

$            0.18

$              0.07

$               0.35

$              0.16

Net income (loss) basic-GAAP basis

0.18

0.18

0.07

0.35

0.16

Book value per share common

9.84

9.71

9.02

9.84

9.02

Tangible book value per share

8.87

8.74

9.00

8.87

9.00

Cash dividends declared

0.00

0.00

0.00

0.00

0.00

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

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

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

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

(4)  Defined as total shareholder's equity less intangible assets.

(5) Defined as (noninterest expense less foreclosed property expense and amortization of intangibles) divided by net operating revenue

(net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains).

 

 

FINANCIAL  HIGHLIGHTS 

SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES

June 30,

March 31,

June 30,

(Dollars in thousands, except share data)

2015

2015

2014

Selected Financial Data

Total assets 

$     3,233,588

$  3,231,956

$    2,294,156

Securities available for sale (at fair value)

762,086

730,232

518,353

Securities held for investment (at amortized cost)

214,777

223,061

156,498

Net loans

1,918,608

1,836,766

1,317,052

Deposits 

2,605,177

2,609,825

1,805,537

Total shareholders' equity  

326,856

321,844

234,439

Average Balances (Year-to-Date)

Total average assets

$     3,188,334

$  3,151,132

$    2,295,983

Less: intangible assets

31,707

31,221

525

Total average tangible assets

$     3,156,627

$  3,119,911

$    2,295,458

Total average equity

$        323,359

$     320,346

$       234,214

Less: intangible assets

31,707

31,221

525

Total average tangible equity

$        291,652

$     289,125

$       233,689

Credit Analysis

Net charge-offs (recoveries) year-to-date - non-acquired loans

$              (621)

$           (263)

$             (251)

Net charge-offs year-to-date - acquired loans

189

46

-

Total net charge-offs (recoveries) year-to-date

$              (432)

$           (217)

$             (251)

Net charge-offs (recoveries) to average loans (annualized) - non-acquired loans

(0.07)

%

(0.06)

%

(0.04)

%

Net charge-offs to average loans (annualized) - acquired loans

0.02

0.01

-

Total net charge-offs (recoveries) to average loans (annualized)

(0.05)

(0.05)

(0.04)

Loan loss provision (recapture) year-to-date - non-acquired loans

$                563

$             292

$          (2,179)

Loan loss provision year-to-date - acquired loans

725

141

-

Total loan loss provision (recapture) year-to-date

$             1,288

$             433

$          (2,179)

Allowance to loans at end of period - non-acquired loans

1.10

%

1.13

%

1.36

%

Discount for credit losses to acquired loans at end of period

3.32

3.56

-

Nonperforming loans - non-acquired loans

$           15,054

$       16,860

$         21,745

Nonperforming loans - acquired loans

4,543

4,196

-

Other real estate owned - non-acquired 

4,855

4,738

6,198

Other real estate owned - acquired 

1,053

1,431

-

Total nonperforming assets 

$           25,505

$       27,225

$         27,943

Restructured loans (accruing)

$           23,441

$       23,847

$         28,157

Purchased noncredit impaired loans

$        275,964

$     296,839

$                  -

Purchased credit impaired loans

6,562

7,119

-

Total acquired loans

$        282,526

$     303,958

$                  -

Nonperforming loans to loans at end of period - non-acquired loans

0.78

%

0.91

%

1.63

%

Nonperforming loans to loans at end of period - acquired loans

0.23

0.23

-

Total nonperforming loans to loans at end of period

1.01

1.14

1.63

Nonperforming assets to total assets - non-acquired 

0.62

%

0.67

%

1.22

%

Nonperforming assets to total assets - acquired 

0.17

0.17

-

Total nonperforming assets to total assets

0.79

0.84

1.22

 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

Three Months Ended

Six Months Ended

June 30,

June 30,

(Dollars in thousands, except per share data)

2015

2014

2015

2014

Interest on securities:

     Taxable

$           4,977

$          3,629

$        9,875

$            7,063

     Nontaxable

147

9

297

21

Interest and fees on loans

21,988

14,103

44,009

27,901

Interest on federal funds sold and other investments

249

246

498

514

         Total Interest Income

27,361

17,987

54,679

35,499

Interest on deposits

524

184

925

378

Interest on time certificates

321

386

668

793

Interest on borrowed money

850

692

1,710

1,382

         Total Interest Expense

1,695

1,262

3,303

2,553

         Net Interest Income

25,666

16,725

51,376

32,946

Provision (recapture) for loan losses

855

(1,444)

1,288

(2,179)

         Net Interest Income After Provision for Loan Losses

24,811

18,169

50,088

35,125

Noninterest income:

     Service charges on deposit accounts

2,115

1,484

4,117

2,991

     Trust fees

759

703

1,560

1,374

     Mortgage banking fees

1,032

855

2,120

1,516

     Brokerage commissions and fees

576

410

1,017

789

     Marine finance fees

492

340

689

594

     Interchange income

2,033

1,514

3,770

2,917

     Other deposit based EFT fees

96

83

210

181

     BOLI income

334

0

664

0

     Gain on participated loan

725

0

725

0

     Other

684

507

1,282

1,092

8,846

5,896

16,154

11,454

     Securities gains, net

0

0

0

17

         Total Noninterest Income

8,846

5,896

16,154

11,471

Noninterest expenses:

     Salaries and wages

9,301

7,768

18,090

15,392

     Employee benefits

2,541

2,081

4,956

4,263

     Outsourced data processing costs

2,234

1,811

4,418

3,506

     Telephone / data lines

443

306

939

599

     Occupancy 

2,011

1,888

4,034

3,726

     Furniture and equipment 

819

604

1,551

1,175

     Marketing 

1,226

675

2,201

1,488

     Legal and professional fees

1,590

2,272

3,253

3,213

     FDIC assessments

520

411

1,109

797

     Amortization of intangibles

315

196

630

392

     Asset dispositions expense

173

118

316

246

     Net loss on other real estate owned and repossessed assets

53

92

134

145

     Other 

3,062

2,461

5,843

4,524

         Total Noninterest Expenses

24,288

20,683

47,474

39,466

         Income Before Income Taxes

9,369

3,382

18,768

7,130

Income taxes

3,564

1,464

7,104

2,913

         Net Income

$           5,805

$          1,918

$      11,664

$            4,217

Per share of common stock:

     Net income diluted

$             0.18

$            0.07

$           0.35

$              0.16

     Net income basic

0.18

0.07

0.35

0.16

     Cash dividends declared

0.00

0.00

0.00

0.00

Average diluted shares outstanding

33,233,508

25,998,121

33,184,764

25,828,391

Average basic shares outstanding

32,978,006

25,826,825

32,971,670

25,659,159

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

QUARTER

2015

2014

(Dollars in thousands)

Second

First

Fourth

Third

Second

Interest on securities:

     Taxable

$        4,977

$            4,898

$        4,728

$        3,657

$        3,629

     Nontaxable

147

150

182

8

9

Interest and fees on loans

21,988

22,021

21,070

14,615

14,103

Interest on federal funds sold and other investments

249

249

292

211

246

         Total Interest Income

27,361

27,318

26,272

18,491

17,987

Interest on deposits

524

401

297

189

184

Interest on time certificates

321

347

375

370

386

Interest on borrowed money

850

860

867

704

692

         Total Interest Expense

1,695

1,608

1,539

1,263

1,262

         Net Interest Income

25,666

25,710

24,733

17,228

16,725

Provision (recapture) for loan losses

855

433

118

(1,425)

(1,444)

         Net Interest Income After Provision for Loan Losses

24,811

25,277

24,615

18,653

18,169

Noninterest income:

     Service charges on deposit accounts

2,115

2,002

2,208

1,753

1,484

     Trust fees

759

801

795

817

703

     Mortgage banking fees

1,032

1,088

716

825

855

     Brokerage commissions and fees

576

441

417

408

410

     Marine finance fees

492

197

445

281

340

     Interchange income

2,033

1,737

1,603

1,452

1,514

     Other deposit based EFT fees

96

114

92

70

83

     BOLI income

334

330

252

0

0

     Gain on participated loan

725

0

0

0

0

     Other

684

598

613

543

507

8,846

7,308

7,141

6,149

5,896

     Securities gains, net

0

0

108

344

0

         Total Noninterest Income

8,846

7,308

7,249

6,493

5,896

Noninterest expenses:

     Salaries and wages

9,301

8,789

11,676

8,064

7,768

     Employee benefits

2,541

2,415

2,461

2,049

2,081

     Outsourced data processing costs

2,234

2,184

3,506

1,769

1,811

     Telephone / data lines

443

496

419

313

306

     Occupancy 

2,011

2,023

2,325

1,879

1,888

     Furniture and equipment 

819

732

732

628

604

     Marketing 

1,226

975

1,163

925

675

     Legal and professional fees

1,590

1,663

2,555

1,103

2,272

     FDIC assessments

520

589

476

387

411

     Amortization of intangibles

315

315

446

195

196

     Asset dispositions expense

173

143

103

139

118

     Branch closures and new branding

0

0

4,958

0

0

     Net loss on other real estate owned and repossessed assets

53

81

9

156

92

     Other 

3,062

2,781

3,182

2,282

2,461

         Total Noninterest Expenses

24,288

23,186

34,011

19,889

20,683

         Income Before Income Taxes

9,369

9,399

(2,147)

5,257

3,382

Income taxes

3,564

3,540

(630)

2,261

1,464

         Net Income

$        5,805

$            5,859

$      (1,517)

$        2,996

$        1,918

Per share of common stock:

     Net income diluted

$           0.18

$               0.18

$        (0.05)

$          0.12

$          0.07

     Net income basic

0.18

0.18

(0.05)

0.12

0.07

     Cash dividends declared

0.00

0.00

0.00

0.00

0.00

Average diluted shares outstanding

33,233,508

33,135,618

33,123,525

26,025,693

25,998,121

Average basic shares outstanding

32,978,006

32,971,444

32,888,612

25,887,591

25,826,825

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS          

(Unaudited)

SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES

June 30,

December 31,

June 30,

(Dollars in thousands, except share data)

2015

2014

2014

Assets

   Cash and due from banks

$               86,904

$               64,411

$              40,175

   Interest bearing deposits with other banks

7,844

36,128

113,855

            Total  Cash and Cash Equivalents

94,748

100,539

154,030

   Securities:

        Available for sale (at fair value)

762,086

741,375

518,353

        Held for investment (at amortized cost)

214,777

207,904

156,498

            Total Securities 

976,863

949,279

674,851

   Loans available for sale

19,656

12,078

18,129

   Loans, net of deferred costs

1,937,399

1,821,885

1,335,192

   Less: Allowance for loan losses

(18,791)

(17,071)

(18,140)

            Net Loans

1,918,608

1,804,814

1,317,052

   Bank premises and equipment, net

50,028

45,086

34,653

   Other real estate owned

5,908

7,462

6,198

   Other intangible assets

6,824

7,454

326

   Goodwill

25,211

25,309

0

   Bank owned life insurance

36,291

35,679

0

   Other assets

99,451

105,635

88,917

$          3,233,588

$          3,093,335

$        2,294,156

Liabilities and Shareholders' Equity

Liabilities

   Deposits

        Noninterest demand

$             808,429

$             725,238

$            509,798

        Interest-bearing demand

599,268

652,353

493,927

        Savings

282,588

264,738

208,333

        Money market

621,973

450,172

335,246

        Other time certificates

158,091

173,247

144,001

        Brokered time certificates

8,237

7,034

8,040

        Time certificates of $100,000 or more

126,591

143,752

106,192

            Total Deposits

2,605,177

2,416,534

1,805,537

   Federal funds purchased and securities sold under

       agreements to repurchase, maturing within 30 days

172,676

233,640

141,662

    Borrowed funds

50,000

50,000

50,000

    Subordinated debt

64,670

64,583

53,610

    Other liabilities

14,209

15,927

8,908

2,906,732

2,780,684

2,059,717

Shareholders' Equity

    Common stock

3,300

3,300

2,599

    Additional paid in capital

380,553

379,249

302,088

    Accumulated deficit

(53,336)

(65,000)

(66,478)

    Treasury stock

(64)

(71)

(54)

330,453

317,478

238,155

    Accumulated other comprehensive (loss), net

(3,597)

(4,827)

(3,716)

            Total Shareholders' Equity

326,856

312,651

234,439

$          3,233,588

$          3,093,335

$        2,294,156

Common Shares Outstanding

33,220,511

33,136,592

25,998,823

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

 

 

CONSOLIDATED QUARTERLY FINANCIAL  DATA

(Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

QUARTERS

2015

2014

(Dollars in thousands, except per share data)

Second

First

Fourth

Third

Second

Net income (loss)

$                     5,805

$              5,859

$          (1,517)

$            2,996

$              1,918

Operating Ratios

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

0.72

%

0.75

%

(0.20)

%

0.52

%

0.33

%

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

0.75

0.79

(0.16)

0.54

0.36

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

7.13

7.42

(1.89)

4.97

3.25

   Efficiency ratio (5)

68.57

68.33

104.46

82.78

89.42

   Noninterest income to total revenue

25.63

22.13

22.40

26.30

26.06

   Net interest margin (1),(2)

3.50

3.62

3.56

3.17

3.10

   Average equity to average assets

10.12

10.17

10.51

10.37

10.27

Credit Analysis Excluding Acquired Loans

   Net charge-offs (recoveries) - non-acquired loans

$                      (358)

$               (263)

$               618

$              (856)

$               (112)

   Net charge-offs - acquired loans

143

46

-

-

-

   Total net charge-offs (recoveries)

$                      (215)

$               (217)

$               618

$              (856)

$               (112)

   Net charge-offs (recoveries) to average loans - non-acquired loans

(0.08)

%

(0.06)

%

0.14

%

(0.25)

%

(0.03)

%

   Net charge-offs (recoveries) to average loans - acquired loans

0.03

0.01

-

-

-

   Total net charge-offs (recoveries) to average loans

(0.05)

(0.05)

0.14

(0.25)

(0.03)

   Loan loss provision (recapture) - non-acquired loans

$                        271

$                 292

$                 54

$           (1,425)

$            (1,444)

   Loan loss provision (recapture) - acquired loans

584

141

64

-

-

   Total loan loss provision (recapture)

$                        855

$                 433

$               118

$           (1,425)

$            (1,444)

   Allowance to loans at end of period - non-acquired loans

1.10

%

1.13

%

1.14

%

1.26

%

1.36

%

   Discount for credit losses to acquired loans at end of period

3.32

3.56

3.56

-

-

   Nonperforming loans - non-acquired loans

$                  15,054

$            16,860

$         18,563

$          18,942

$           21,745

   Nonperforming loans - acquired loans

4,543

4,196

2,577

-

-

   Other real estate owned - non-acquired

4,855

4,738

5,567

5,018

6,198

   Other real estate owned - acquired

1,053

1,431

1,895

-

-

   Total nonperforming assets

$                  25,505

$            27,225

$         28,602

$          23,960

$           27,943

  Restructured loans (accruing)

$                  23,441

$            23,847

$         24,997

$          28,969

$           28,157

  Purchased noncredit impaired loans

$                275,964

$          296,839

$       326,066

$                   -

$                    -

  Purchased credit impaired loans

6,562

7,119

7,814

-

-

  Total acquired loans

$                282,526

$          303,958

$       333,880

$                   -

$                    -

   Nonperforming loans to loans at end of period - non-acquired loans

0.78

%

0.91

%

1.02

%

1.36

%

1.63

%

   Nonperforming loans to loans at end of period - acquired loans

0.23

0.23

0.14

-

-

   Total nonperforming loans to loans at end of period

1.01

1.14

1.16

1.36

1.63

   Nonperforming assets to total assets - non-acquired

0.62

%

0.67

%

0.78

%

1.01

%

1.22

%

   Nonperforming assets to total assets - acquired

0.17

0.17

0.14

-

-

   Total nonperforming assets to total assets

0.79

0.84

0.92

1.01

1.22

Per Share Common Stock

   Net income (loss) diluted-GAAP basis

$                       0.18

$                0.18

$            (0.05)

$               0.12

$                0.07

   Net income (loss) basic-GAAP basis

0.18

0.18

(0.05)

0.12

0.07

   Cash dividends declared

0.00

0.00

0.00

0.00

0.00

   Book value per share common

9.84

9.71

9.44

9.07

9.02

Average Balances

Total average assets

$             3,225,127

$      3,151,132

$    3,037,061

$     2,305,799

$      2,304,870

Less: Intangible assets

32,188

31,221

33,803

237

422

Total average tangible assets

$             3,192,939

$      3,119,911

$    3,003,258

$     2,305,562

$      2,304,448

Total average equity

$                326,338

$          320,346

$       319,233

$        239,031

$         236,632

Less: Intangible assets

32,188

31,221

33,803

237

422

Total average tangible equity

$                294,150

$          289,125

$       285,430

$        238,794

$         236,210

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

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

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

are not included in net income (loss).

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

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

(5) Defined as (noninterest expense less foreclosed property expense and amortization of intangibles) divided by net operating revenue

(net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains).

 

 

June 30,

December 31,

June 30,

SECURITIES 

2015

2014

2014

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

$           3,843

$            3,899

$                 100

Mortgage-backed

558,561

587,933

479,720

Collateralized loan obligations

124,241

125,225

32,260

Obligations of states and political subdivisions

22,873

24,318

6,273

Corporates

24,213

0

0

CMBS

20,587

0

0

Other

7,768

0

0

   Securities Available for Sale

762,086

741,375

518,353

Mortgage-backed

173,477

182,076

156,498

Collateralized loan obligations

41,300

25,828

0

   Securities Held for Investment

214,777

207,904

156,498

       Total Securities

$       976,863

$        949,279

$         674,851

 

 

 

June 30,

December 31,

June 30,

LOANS

2015

2014

2014

Construction and land development

$         95,178

$          87,036

$           57,393

Real estate mortgage

1,588,105

1,524,044

1,145,013

Installment loans to individuals

62,913

52,897

45,241

Commercial and financial

190,325

157,396

87,285

Other loans

878

512

260

       Total Loans

$    1,937,399

$     1,821,885

$      1,335,192

 

 

AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES (1) 

(Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

2015

2014

Second Quarter

First Quarter

Second Quarter

Average

Yield/

Average

Yield/

Average

Yield/

(Dollars in thousands)

Balance

Interest

Rate

Balance

Interest

Rate

Balance

Interest

Rate

Assets

Earning assets:

    Securities:

         Taxable

$         957,374

$        4,977

2.08%

$       939,015

$      4,898

2.09%

$      677,600

$    3,630

2.14%

         Nontaxable 

15,311

225

5.87

15,617

230

5.89

827

14

6.77

                   Total Securities

972,685

5,202

2.14

954,632

5,128

2.15

678,427

3,644

2.15

    Federal funds sold and other

         investments

79,031

249

1.26

92,934

249

1.09

153,410

246

0.64

    Loans,  net

1,904,011

22,032

4.64

1,848,965

22,065

4.84

1,338,415

14,151

4.24

                  Total Earning Assets

2,955,727

27,483

3.73

2,896,531

27,442

3.84

2,170,252

18,041

3.33

Allowance for loan losses

(18,247)

(17,385)

(19,784)

Cash and due from banks

71,858

63,689

35,735

Premises and equipment

49,275

46,605

34,948

Intangible assets

32,188

31,221

422

Bank owned life insurance

36,111

35,793

0

Other assets

98,215

94,678

83,297

$      3,225,127

$    3,151,132

$   2,304,870

Liabilities and Shareholders' Equity

Interest-bearing liabilities:

      Interest-bearing demand

$         612,433

$           110

0.07%

$       628,480

$         117

0.08%

$      498,285

$          94

0.08%

      Savings

279,354

41

0.06

268,041

39

0.06

205,686

23

0.04

      Money market

607,271

373

0.25

519,526

245

0.19

336,772

67

0.08

      Time deposits

303,802

321

0.42

318,343

347

0.44

259,325

386

0.60

      Federal funds purchased and 

        other short term borrowings

168,068

77

0.18

212,123

98

0.19

150,108

65

0.17

      Other borrowings

114,649

773

2.70

114,606

762

2.70

103,610

627

2.43

                Total Interest-Bearing Liabilities

2,085,577

1,695

0.33

2,061,119

1,608

0.32

1,553,786

1,262

0.33

Noninterest demand

795,707

753,620

505,892

Other liabilities

17,505

16,047

8,560

                  Total Liabilities 

2,898,789

2,830,786

2,068,238

Shareholders' equity

326,338

320,346

236,632

$      3,225,127

$    3,151,132

$   2,304,870

Interest expense as a % of earning assets  

0.23%

0.23%

0.23%

Net interest income as a % of earning assets  

$      25,788

3.50%

$    25,834

3.62%

$  16,779

3.10%

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

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

 

 

 

CONSOLIDATED QUARTERLY FINANCIAL  DATA

(Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

2015

2014

(Dollars in thousands)

Second Quarter

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

Customer Relationship Funding (Period End)

      Noninterest demand

Commercial

$            561,742

$           546,876

$         481,327

$          301,630

$         293,515

Retail

180,484

191,262

190,120

162,392

167,172

Public funds

47,913

38,529

41,201

39,329

33,223

Other

18,290

16,669

12,590

18,650

15,888

808,429

793,336

725,238

522,001

509,798

      Interest-bearing demand

Commercial

60,411

66,532

58,173

41,131

41,423

Retail

410,601

416,766

407,653

324,690

327,762

Public funds

128,256

151,556

186,527

114,006

124,742

599,268

634,854

652,353

479,827

493,927

      Total transaction accounts

Commercial

622,153

613,408

539,500

342,761

334,938

Retail

591,085

608,028

597,773

487,082

494,934

Public funds

176,169

190,085

227,728

153,335

157,965

Other

18,290

16,669

12,590

18,650

15,888

1,407,697

1,428,190

1,377,591

1,001,828

1,003,725

      Savings

282,588

272,963

264,738

215,076

208,333

      Money market

Commercial

191,061

185,668

172,417

118,385

114,662

Retail

272,853

274,203

264,725

218,376

213,927

Public funds

158,059

136,729

13,030

7,965

6,657

621,973

596,600

450,172

344,726

335,246

      Time certificates of deposit

292,919

312,072

324,033

246,920

258,233

            Total Deposits

$         2,605,177

$        2,609,825

$      2,416,534

$       1,808,550

$      1,805,537

      Customer sweep accounts

$            157,676

$           170,023

$         153,640

$          124,436

$         141,662

      Total core customer funding (1)

$         2,469,934

$        2,467,776

$      2,246,141

$       1,686,066

$      1,688,966

(1) Total deposits and customer sweep accounts, excluding certificates of deposits.

 

Logo - http://photos.prnewswire.com/prnh/20141218/165377LOGO

SOURCE Seacoast Banking Corporation of Florida



RELATED LINKS

http://www.seacoastbanking.net