Seacoast Reports $0.9 Million In Net Income For The Quarter
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 |
Q-4 |
Q-3 |
Q-2 |
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 |
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 |
||||||
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