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Seacoast Reports $0.9 Million In Net Income For The Quarter


News provided by

Seacoast Banking Corporation of Florida

Apr 26, 2012, 04:01 ET

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STUART, Fla., April 26, 2012 /PRNewswire/ --

Highlights for First Quarter 2012

  • Demand deposit balances increased 20.2%
  • Other real estate owned declined by 25.8 %
  • Noninterest income (excluding securities gains) grew 17.3%
  • Company exits government TARP program
  • Risk-based capital ratio grew year over year to 18.6%

Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCF), today reported first quarter 2012 net income of $938,000 compared to $358,000 for the same quarter last year.  Net income available to common shareholders for the first quarter 2012 totaled $1,000, or $0.00 per diluted common share, compared with 2011 net loss of $579 thousand, or $0.01 per diluted common share. Fourth quarter 2011 net income available to common shareholders was $1.6 million, or $0.02 per diluted common share. 

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

"We produced record growth in new households during the quarter and significant growth in consumer and business core deposit balances compared to the prior year.  We are finding that our distinctive business model is increasingly effective in growing our customer franchise which is the key to achieving sustainable growth in shareholder value," said Dennis S. Hudson, III, Chairman and Chief Executive Officer.  "During the quarter we were also pleased to exit the government's troubled asset relief program following the sale of our Class A Preferred Stock by the Treasury Department to new investors."

Earnings for the quarter, while improved over the prior year, were below our expectations due to our decision to reduce a significant amount of our nonperforming assets.  During the quarter we took advantage of market conditions to sell, at a faster pace than previously anticipated, a substantial portion of other real estate owned.  The assets were primarily commercial properties which were sold for cash on a conventional basis closing this quarter and next quarter.  We continue to believe reducing the level of problem assets as quickly as possible is an important factor in reducing overhead going forward.  We will remain focused on expanding our customer franchise in response to the significant opportunities we see to capture market share in our markets.  This is the key to revenue growth which when combined with reduced costs will drive earnings improvements.

Highlights for the quarter:

  • Other real estate owned fell to $15.5 million compared to $20.9 million last quarter and $24.1 million one year earlier.  Approximately 40 percent of the remaining portfolio is under contract to be sold in the second quarter;
  • Nonperforming assets fell to 2.64% of total assets at March 31, 2012 compared to 4.34% last year, but was up from 2.31% last quarter;
  • Noninterest bearing demand deposits grew $66.2 million or 20.2 percent linked quarter and now total 22.7 percent of total deposits, compared with 19.3 percent one year earlier;
  • Commercial and retail banking added 3,065 new household relationships during the first quarter of 2012 compared to 2,696 for the fourth quarter 2011;
  • Retail and commercial deposit related fees grew 11.1 percent, compared with one year earlier, and included a 20.2 percent growth in check and debit card fees; and
  • Mortgage banking fees grew 57.7 percent compared with one year earlier.

A key objective of our strategic plan is to produce strong organic growth of our customer deposit franchise.  During the quarter, our tactical initiatives produced significantly improved growth in customer relationship funding compared to the same quarter last year.  Total core customer funding increased by 15.0 percent over the past twelve months. 



2012


2011


Change


(Dollars in thousands)

First Quarter


First Quarter



Customer Relationship Funding (Period End)







      Demand deposits (noninterest bearing)

$    394,532


$  324,879


21.4

%

      NOW

436,712


396,369


10.2


      Savings deposits

148,068


120,819


22.6


      Money market accounts

330,409


310,942


6.3


      Time certificates of deposit

427,738


533,201


(19.8)


            Total Deposits

1,737,459


1,686,210


3.0


      Sweep repurchase agreements

149,316


115,185


29.6


      Total core customer funding (1)

1,459,037


1,268,194


15.0


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

New household acquisition was particularly strong for the first quarter 2012.  New personal retail checking relationships opened during the quarter rose 30.8 percent compared to the same quarter in 2011 and grew 9.8 percent compared with the fourth quarter of 2011.  Likewise, new commercial business checking deposit relationships opened increased by 22.9 percent compared with the same quarter one year ago.  Along with the new relationships, our programs have improved market share, increased average services per household and decreased customer attrition.

Total revenue was $25.0 million for the first quarter of 2012 compared with $20.7 million for the first quarter of 2011. The increase included a first quarter 2012 securities gain of $3.4 million, as well as higher fees primarily related to increased households and increased services per household, greater mortgage banking gains, marine finance fees, and interchange income.

Net interest income increased $186,000 to $16.6 million compared with the first quarter 2011 and resulted from loan growth and lower funding costs which was partially offset by a decline in the yield of investment securities portfolio and lower loan yields.  These factors reduced the net interest margin by 9 basis points to 3.33 percent for the first quarter compared with 3.42 percent for the fourth quarter and 3.48 percent in the first quarter of 2011.

Over the past 12 months the net interest margin was aided by much lower nonperforming assets and lower costs for interest bearing liabilities, offset by lower asset yields caused by Federal Reserve actions to stimulate economic growth.  In addition the net interest margin continues to be negatively impacted by higher levels of overnight liquidity and short-term investments.  Interest bearing deposit costs decreased 11 basis points to 0.58 percent during the first quarter 2012, and the total cost of interest bearing liabilities decreased from 0.98 percent for the first quarter 2011 to 0.68 percent in the first quarter 2012.  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 22.7 percent of total deposits from 19.3 percent a year ago and total transaction accounts and customer sweep repurchase accounts now account for more than half of total customer relationship funding.

Nonperforming assets of $57.2 million at March 31, 2012 declined $33.1 million, or 36.6 percent, compared with the first quarter 2011.  Accruing loans past due 90 days or more were $29,000 at March 31, 2012 and $0 at December 31, 2011. Net charge-offs declined to $3.4 million in the first quarter 2012 compared with $4.0 million in the last year's first quarter.  The allowance for loan losses was 2.01 percent of loans at March 31, 2012 compared to 2.12 at December 31, 2011.  Nonperforming loans declined by $24.5 million during the last twelve months and totaled 3.43 percent of loans outstanding at quarter-end.  Early stage delinquencies (accruing loans 30-89 days past due) remain nominal at 0.6 percent of loans outstanding. 

The provision for credit losses increased to $2.3 million for the first quarter compared with $640,000 in the first quarter 2011.  While overall credit quality continues to improve, a specific allowance attributable to loans moving to foreclosure was increased.  The provision for credit losses is expected to fall to a level more consistent with recent prior quarters going forward.

Noninterest income, excluding investment gains, was $4.9 million for the first quarter of 2012, up 17.3 percent compared with $4.2 million for the first quarter of 2011.  Residential mortgage revenue increased $228,000 or 57.7 percent compared with the first quarter last year due to increased production and service release premiums.  Interchange fees totaled $1.1 million for the first quarter 2012 and were up 20.2 percent compared with the first quarter 2011 primarily due to the increases in households.  

Revenue growth improved throughout 2011 and into 2012 as a result of retail and small business deposit account growth, and improvements in loan production.  

(Dollars in thousands)

Q-1
2012

Q-4
2011

Q-3
2011

Q-2
2011

Q-1

2011

Noninterest Income:






Service charges on deposit accounts

$1,461

$1,599

$1,675

$1,546

$1,442

Trust income

573

530

541

517

523

Mortgage banking fees

623

680

556

509

395

Brokerage commissions and fees

234

258

321

223

320

Marine finance fees

330

333

229

349

298

Interchange income

1,071

953

969

995

891

Other deposit based EFT fees

99

78

71

79

90

Other

546

452

344

329

250


4,937

4,883

4,706

4,547

4,209

Securities gains

3,374

1,083

137

0

0

    Total

$8,311

$5,966

$4,843

$4,547

$4,209


Loans grew to $1.216 billion at March 31, 2012, up 2.6 percent annualized from $1.208 billion at December 31, 2011. Commercial lending decreased $0.9 million during the first quarter but new client activity improved across diverse industries including medical and manufacturing. Consumer loans increased $9.6 million linked quarter mainly due to higher residential, auto and boat loans.  Average loans of $1.214 billion in the first quarter grew $22.5 million, or 1.8 percent, compared with the first quarter a year ago.  This is the third consecutive quarter of total loan growth as a result of improving loan production, stabilized credit quality and our tactical focus on growing market share in lower risk customer segments. 

Deposits grew to $1.737 billion at March 31, 2012 compared with $1.719 billion at December 31, 2011 and $1.686 billion at March 31, 2011.  Growth in transaction deposits in the first quarter 2012 of $33.3 million and savings and money market deposits of $25.7 million was partially offset by declines in retail certificates of deposit of $40.3 million.  Average deposits were $1.699 billion for the first quarter 2012, an increase of $42.7 million from the first quarter of 2011.

Seacoast strengthened its regulatory capital ratios as profitability was restored throughout 2011 and 2012.  The estimated total risk-based capital ratio at quarter-end increased to 18.6 percent, up from 18.2 percent a year ago.  The estimated tangible common equity ratio was 5.6 percent at March 31, 2012 and will increase to an estimated 7.5 percent when the deferred tax asset valuation allowance is released. 

Core operating expenses (total noninterest expenses less losses on other real estate owned and other asset disposition expenses) totaled $19.2 million for the quarter, up $793 thousand over the fourth quarter 2011.  Contributing to the increase for the quarter were significant increases in employee benefits expense of $563 thousand and legal and professional fees of approximately $477 thousand.  The increase in employee benefits expense was due to higher payroll taxes (typical for the first quarter), as well as higher health insurance and retirement costs.  The increase in legal and professional fees included higher costs related to the disposition of problem assets and costs related to the preferred stock sale by the Treasury Department.

Core operating expense trends are presented in the table below:

(dollars in thousands)


Q-1
2012

Q-4

2011

Q-3

 2011

Q-2

 2011

Q-1

2011

Noninterest Expense:














Salaries and wages


$7,055

$7,301

$6,902

$6,534

$6,551

Employee benefits


2,010

1,447

1,391

1,437

1,600

Outsourced data processing costs


1,721

1,677

1,685

1,699

1,522

Telephone / data lines


289

285

286

319

289

Occupancy expense


1,882

1,795

1,967

1,919

1,946

Furniture and equipment expense


495

525

555

618

593

Marketing expense


926

947

551

667

752

Legal and professional fees


1,776

1,299

1,496

1,585

1,757

FDIC assessments


706

679

687

688

959

Amortization of intangibles


201

212

211

212

212

Other


2,163

2,264

1,947

1,812

1,951

   Total Core Operating Expense


19,224

18,431

17,678

17,490

18,132








Net loss on OREO


1,959

1,254

906

441

449

Asset dispositions expense


527

275

479

1,142

1,086

   Total


$21,710

$19,960

$19,063

$19,073

$19,667

The Company will host a conference call on Friday, April 27, 2012 at 9:00 a.m. (Eastern Time) to discuss its earnings results and business trends.  Investors may call in (toll-free) by dialing (888) 517-2464 (access code: 5785075; 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 April 27 by dialing (888) 843-7419 (domestic), using the passcode 5785075.

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 April 27, 2012, 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 over $2.1 billion in assets, is one of the largest independent commercial banking organizations in Florida.  Seacoast has 39 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


(Dollars in thousands,



March 31,


   except share data)



2012


2011


Summary of Earnings







Net income 



$                     938


$            358


Net income (loss) available to common shareholders



1


(579)









Net interest income  (1)



16,689


16,518









Performance Ratios







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



0.18

%

0.07

%

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



0.20


0.10









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



2.26


0.88









Net interest margin  (1), (2)



3.33


3.48









Per Share Data







Net income (loss) diluted-GAAP basis



$                    0.00


$          (0.01)


Net income (loss) basic-GAAP basis



0.00


(0.01)









Cash dividends declared



0.00


0.00

















March 31,

     Increase/



2012


2011


    (Decrease)


Credit Analysis







Net charge-offs year-to-date

$            3,415


$                  4,031


(15.3)

%

Net charge-offs to average loans

1.13

%

1.32

%

(14.4)


Loan loss provision year-to-date

$            2,305


$                     640


260.2


Allowance to loans at end of period

2.01

%

2.80

%

(28.2)









Nonperforming loans

$          41,716


$                66,233


(37.0)


Other real estate owned

15,530


24,111


(35.6)


Total non-performing assets

$          57,246


$                90,344


(36.6)









Restructured loans (accruing)

$          57,665


$                76,935


(25.0)









Nonperforming assets to loans and other real







   estate owned at end of period

4.65

%

7.23

%

(35.7)









Nonperforming assets to total assets

2.64

%

4.34

%

(39.2)









Selected Financial Data







Total assets 

$       2,169,073


$           2,081,319


4.2


Securities available for sale (at fair value)

574,615


514,150


11.8


Securities held for investment (at amortized cost)

18,801


25,835


(27.2)


Net loans

1,191,937


1,191,030


0.1


Deposits 

1,737,459


1,686,210


3.0


Total shareholders' equity  

170,922


165,798


3.1


Common shareholders' equity

123,113


119,238


3.2


Book value per share common

1.30


1.28


1.6


Tangible book value per share

1.78


1.74


2.3


Tangible common book value per share (5)

1.28


1.24


3.2


Average shareholders' equity to average assets

7.85

%

8.14

%

(3.6)


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

5.58


5.60


(0.4)









Average Balances (Year-to-Date)







Total assets

$        2,126,186


$           2,030,045


4.7


Less: intangible assets

2,184


3,027


(27.8)


Total average tangible assets

$        2,124,002


$           2,027,018


4.8









Total equity

$           166,874


$              165,148


1.0


Less: intangible assets

2,184


3,027


(27.8)


Total average tangible equity

$           164,690


$              162,121


1.6























(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.


CONDENSED CONSOLIDATED STATEMENTS OF INCOME                                      (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES






Three Months Ended


March 31,

(Dollars in thousands, except per share data)

2012


2011





Interest on securities:




     Taxable

$          4,335


$            3,676

     Nontaxable

24


47

Interest and fees on loans

14,774


16,213

Interest on federal funds sold and other investments

217


233

         Total Interest Income

19,350


20,169





Interest on deposits

449


592

Interest on time certificates

1,500


2,348

Interest on borrowed money

759


773

         Total Interest Expense

2,708


3,713





         Net Interest Income

16,642


16,456

Provision for loan losses

2,305


640

         Net Interest Income After Provision for Loan Losses

14,337


15,816





Noninterest income:




     Service charges on deposit accounts

1,461


1,442

     Trust income

573


523

     Mortgage banking fees

623


395

     Brokerage commissions and fees

234


320

     Marine finance fees

330


298

     Interchange income

1,071


891

     Other deposit based EFT fees

99


90

     Other

546


250


4,937


4,209

     Securities gains, net

3,374


0

         Total Noninterest Income

8,311


4,209





Noninterest expenses:




     Salaries and wages

7,055


6,551

     Employee benefits

2,010


1,600

     Outsourced data processing costs

1,721


1,522

     Telephone / data lines

289


289

     Occupancy 

1,882


1,946

     Furniture and equipment 

495


593

     Marketing 

926


752

     Legal and professional fees

1,776


1,757

     FDIC assessments

706


959

     Amortization of intangibles

201


212

     Asset dispositions expense

527


1,086

     Net loss on other real estate owned and repossessed assets

1,959


449

     Other 

2,163


1,951

         Total Noninterest Expenses

21,710


19,667





         Income Before Income Taxes

938


358

Provision for income taxes

0


0





         Net Income 

938


358

Preferred stock dividends and accretion on preferred stock discount

937


937

         Net Income (Loss) Available to Common Shareholders

$                  1


$             (579)





Per share of common stock:








     Net income (loss) diluted

$            0.00


$            (0.01)

     Net income (loss) basic

0.00


(0.01)

     Cash dividends declared

0.00


0.00





Average diluted shares outstanding

94,394,906


93,458,692

Average basic shares outstanding

93,618,129


93,458,692





CONDENSED CONSOLIDATED BALANCE SHEETS          

(Unaudited)





SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES












March 31,


December 31,


March 31,

(Dollars in thousands, except share data)

2012


2011


2011







Assets






   Cash and due from banks

$               37,652


$             41,136


$          29,578

   Interest bearing deposits with other banks

234,382


125,945


197,960

            Total  Cash and Cash Equivalents

272,034


167,081


227,538







   Securities:






        Available for sale (at fair value)

574,615


648,362


514,150

        Held for investment (at amortized cost)

18,801


19,977


25,835

            Total Securities 

593,416


668,339


539,985







   Loans available for sale

8,214


6,795


3,095







   Loans, net of deferred costs

1,216,392


1,208,074


1,225,383

   Less: Allowance for loan losses

(24,455)


(25,565)


(34,353)

            Net Loans

1,191,937


1,182,509


1,191,030







   Bank premises and equipment, net

34,151


34,227


35,568

   Other real estate owned

15,530


20,946


24,111

   Other intangible assets

2,088


2,289


2,925

   Other assets

51,703


55,189


57,067


$          2,169,073


$        2,137,375


$     2,081,319







Liabilities and Shareholders' Equity






Liabilities






   Deposits






        Demand deposits (noninterest bearing)

$             394,532


$           328,356


$         324,879

        NOW

436,712


469,631


396,369

        Savings deposits 

148,068


133,578


120,819

        Money market accounts

330,409


319,152


310,942

        Other time certificates

231,060


244,886


278,437

        Brokered time certificates

7,113


4,558


7,371

        Time certificates of $100,000 or more

189,565


218,580


247,393

            Total Deposits

1,737,459


1,718,741


1,686,210







   Federal funds purchased and securities sold under






       agreements to repurchase, maturing within 30 days

149,316


136,252


115,185

    Borrowed funds

50,000


50,000


50,000

    Subordinated debt

53,610


53,610


53,610

    Other liabilities

7,766


8,695


10,516


1,998,151


1,967,298


1,915,521







Shareholders' Equity






    Preferred stock - Series A

47,809


47,497


46,560

    Common stock

9,474


9,469


9,351

    Additional paid in capital

222,295


222,048


221,688

    Accumulated deficit

(114,151)


(114,152)


(112,650)

    Treasury stock

(22)


(13)


(1)


165,405


164,849


164,948

    Accumulated other comprehensive gain, net

5,517


5,228


850

            Total Shareholders' Equity

170,922


170,077


165,798


$          2,169,073


$       2,137,375


$     2,081,319







Common Shares Outstanding

94,717,432


94,686,801


93,514,212







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


2011

Last 12


(Dollars in thousands, except per share data)

First


Fourth

Third

Second


Months 


Net income

$           938



$         2,548


$        2,648


$           1,113


$             7,247














Operating Ratios












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

0.18

%


0.48

%

0.51

%

0.21

%

0.35

%

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

0.20



0.51


0.54


0.24


0.36














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

2.26



6.17


6.33


2.68


4.37














   Net interest margin (1),(2)

3.33



3.42


3.44


3.36


3.39


   Average equity to average assets

7.85



7.86


8.07


7.98


7.94














Credit Analysis












   Net charge-offs

$           3,415



$           3,268


$           2,830


$            4,024


$             13,537


   Net charge-offs to average loans

1.13

%


1.07

%

0.94

%

1.32

%

1.12

%

   Loan loss provision

$           2,305



$              432


$                  0


$               902


$               3,639


   Allowance to loans at end of period

2.01

%


2.12

%

2.35

%

2.63

%















  Restructured loans (accruing)

$         57,665



$         71,611


$         72,751


$          60,238
















   Nonperforming loans

$         41,716



$         28,526


$         32,627


$          46,165




   Other real estate owned

15,530



20,946


23,702


25,877




   Nonperforming assets

$         57,246



$         49,472


$         56,329


$          72,042




   Nonperforming assets to loans and other












       real estate owned at end of period

4.65

%


4.03

%

4.57

%

5.93

%



   Nonperforming assets to total assets

2.64



2.31


2.75


3.46




   Nonaccrual loans and accruing loans 90 days or more












       past due to loans outstanding at end of period

3.43



2.36


2.70


3.88
















Per Share Common Stock












   Net income (loss) diluted-GAAP basis

$           0.00



$             0.02


$             0.02


$              0.00


$                 0.04


   Net income (loss) basic-GAAP basis

0.00



0.02


0.02


0.00


0.04














   Cash dividends declared

-



-


-


-


-


   Book value per share common

1.30



1.29


1.31


1.33
















Average Balances












Total assets

$    2,126,186



$    2,085,466


$    2,054,856


$     2,083,858




Less: Intangible assets

2,184



2,392


2,605


2,816




Total average tangible assets

$    2,124,002



$    2,083,074


$    2,052,251


$     2,081,042
















Total equity

$       166,874



$       163,857


$       165,845


$        166,342




Less: Intangible assets

2,184



2,392


2,605


2,816




Total average tangible equity

$       164,690



$       161,465


$       163,240


$        163,526
















(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.































March 31,


December 31,


March 31,


SECURITIES 






2012


2011


2011














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






$            1,718


$            1,724


$               4,208


Mortgage-backed






571,738


645,471


505,784


Obligations of states and political subdivisions






1,159


1,167


1,412


Other securities






0


0


2,746


   Securities Available for Sale






574,615


648,362


514,150














Mortgage-backed






10,640


12,315


17,122


Obligations of states and political subdivisions






6,661


6,662


7,713


Other securities






1,500


1,000


1,000


   Securities Held for Investment






18,801


19,977


25,835


       Total Securities






$        593,416


$        668,339


$           539,985
































March 31,


December 31,

March 31,


LOANS






2012


2011

2011


Construction and land development






$         54,018


$          49,184


$             75,718


Real estate mortgage






1,056,823


1,054,599


1,047,473


Installment loans to individuals






50,789


50,611


50,364


Commercial and financial






54,561


53,105


51,520


Other loans






201


575


308


       Total Loans






$     1,216,392


$     1,208,074


$        1,225,383


























AVERAGE BALANCES, YIELDS AND RATES (1)            (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES












2012


2011


First Quarter


Fourth Quarter


First Quarter


Average

Yield/

Average

Yield/

Average

Yield/

(Dollars in thousands)

Balance

Rate


Balance

Rate


Balance

Rate











Assets










Earning assets:










    Securities:










         Taxable

$              620,666

2.79

%

$                614,939

2.93

%

$          468,489

3.14

%

         Nontaxable 

2,223

6.48


2,591

4.17


3,921

7.45


                   Total Securities

622,889

2.81


617,530

2.93


472,410

3.17












    Federal funds sold and other










         investments

179,337

0.49


147,017

0.52


216,906

0.44












    Loans,  net

1,213,796

4.91


1,210,028

5.05


1,236,274

5.33












                  Total Earning Assets

2,016,022

3.87


1,974,575

4.04


1,925,590

4.26












Allowance for loan losses

(25,104)



(27,689)



(37,254)



Cash and due from banks

36,513



35,312



30,122



Premises and equipment

34,237



34,517



35,936



Other assets

64,518



68,751



75,651














$           2,126,186



$             2,085,466



$       2,030,045























Liabilities and Shareholders' Equity










Interest-bearing liabilities:










      NOW (2)

$              432,515

0.17

%

$                422,480

0.20

%

$           386,437

0.25

%

      Savings deposits 

140,941

0.11


131,554

0.11


116,896

0.11


      Money market accounts (2)

327,071

0.28


325,111

0.34


306,562

0.43


      Time deposits

443,538

1.36


475,666

1.52


534,401

1.78


      Federal funds purchased and 










        other short term borrowings

147,413

0.23


127,956

0.22


93,279

0.28


      Other borrowings

103,610

2.61


103,610

2.50


103,610

2.77












                     Total Interest-Bearing Liabilities

1,595,088

0.68


1,586,377

0.77


1,541,185

0.98












Demand deposits (noninterest-bearing)

355,362



326,215



312,310



Other liabilities

8,862



9,017



11,402



                     Total Liabilities 

1,959,312



1,921,609



1,864,897













Shareholders' equity

166,874



163,857



165,148














$           2,126,186



$             2,085,466



$       2,030,045













Interest expense as a % of earning assets  


0.54

%


0.62

%


0.78

%

Net interest income as a % of earning assets  


3.33



3.42



3.48
































(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)

First Quarter


Fourth Quarter


Third Quarter


Second Quarter


First Quarter











Customer Relationship Funding (Period End)










      Demand deposits (noninterest bearing)

$        394,532


$        328,356


$      324,256


$       321,876


$         324,879

      NOW accounts

436,712


469,631


391,318


385,640


396,369

      Money market accounts

330,409


319,152


327,654


320,510


310,942

      Savings savings accounts

148,068


133,578


128,543


125,221


120,819

      Time certificates of deposit

427,738


468,024


489,503


528,214


533,201

            Total Deposits

1,737,459


1,718,741


1,661,274


1,681,461


1,686,210











      Sweep repurchase agreements

149,316


136,252


106,562


102,827


115,185

      Total core customer funding (1)

1,459,037


1,386,969


1,278,333


1,256,074


1,268,194





















(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

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

      Multifamily

6.1

5.7

5.5

5.1


4.9


13.2

12.2

11.9

11.3


10.9

   Commercial







      Office buildings

-

-

-

0.2


0.3

      Retail trade

-

-

-

-


-

      Land

33.9

10.3

10.2

9.3


9.2

      Industrial

-

-

-

-


-

      Healthcare

-

-

-

-


-

      Churches and educational facilities

-

-

-

0.1


0.3

      Lodging

-

-

-

-


-

      Convenience stores

0.5

0.6

0.6

1.7


1.4

      Marina

-

-

-

-


-

      Other

-

-

-

-


-


34.4

10.9

10.8

11.3


11.2

   Individuals







      Lot loans

20.8

19.4

18.6

17.9


18.4

      Construction

7.3

6.7

6.4

8.7


13.5


28.1

26.1

25.0

26.6


31.9

   Total construction and land development

75.7

49.2

47.7

49.2


54.0








Real estate mortgages







   Residential real estate







      Adjustable

308.6

314.3

324.4

334.1


341.6

      Fixed rate

86.6

88.8

92.8

97.0


96.2

      Home equity mortgages

67.7

63.1

63.6

60.2


59.5

      Home equity lines

57.4

56.9

55.1

54.9


53.0


520.3

523.1

535.9

546.2


550.3

   Commercial real estate







      Office buildings

121.3

120.0

122.0

119.6


118.0

      Retail trade

150.6

149.6

146.1

140.6


139.3

      Industrial

76.3

68.5

72.5

70.7


70.0

      Healthcare

26.6

26.3

29.6

38.8


40.2

      Churches and educational facilities

28.6

28.2

27.8

27.4


27.0

      Recreation

2.8

2.8

2.7

3.2


3.1

      Multifamily

14.2

16.8

15.4

9.4


8.8

      Mobile home parks

2.5

2.4

2.2

2.2


2.1

      Lodging

21.7

20.0

19.8

19.6


19.4

      Restaurant

4.2

4.3

4.3

4.7


4.6

      Agricultural

9.2

9.2

8.9

8.8


7.6

      Convenience stores

20.1

20.0

19.8

15.1


15.5

      Marina

21.7

21.5

21.4

21.3


21.6

      Other

27.4

27.3

26.9

27.0


29.3


527.2

516.9

519.4

508.4


506.5

   Total real estate mortgages

1,047.5

1,040.0

1,055.3

1,054.6


1,056.8








Commercial & financial

51.5

48.0

53.5

53.1


54.6








Installment loans to individuals







      Automobile and trucks

10.1

9.5

9.2

8.7


8.2

      Marine loans

19.4

20.2

21.6

19.9


21.1

      Other

20.9

21.6

20.9

22.0


21.5


50.4

51.3

51.7

50.6


50.8








Other

0.3

0.4

0.3

0.6


0.2


$   1,225.4

$   1,188.9

$   1,208.5

1,208.1


1,216.4








QUARTERLY TRENDS - INCREASE (DECREASE) IN LOANS BY QUARTER (Dollars in Millions)    (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES









2011


2012