Seacoast Reports Improvements for the Third Quarter

Oct 21, 2010, 16:06 ET from Seacoast Banking Corporation of Florida

STUART, Fla., Oct. 21 /PRNewswire-FirstCall/ --

- "Switch to Seacoast" campaign accelerates new household and revenue growth

  • Revenue increases 8.5 percent annualized
  • Strong growth in fee income and margin expansion to 3.35 percent

- Credit quality improvements continue in the quarter

  • Nonperforming loans decline by 23.5 percent
  • Eliminated exposure to large residential construction and development loans

Seacoast Banking Corporation of Florida (Nasdaq-NMS: SBCF), today reported a significantly improved net loss for the third quarter of 2010 totaling $7,638,000, compared to $40,777,000 for the third quarter a year ago.  In addition, the net loss was lower for the first nine months of 2010, totaling $22,998,000, compared to $108,537,000 for 2009.  For the first nine months of 2009, the net loss was impacted by a $49.8 million goodwill impairment, as well as, much higher provisioning for loan losses. The net loss that is available to Common shareholders for the third quarter and year to date 2010 totaled $8,575,000, or $0.09 diluted earnings per share (DEPS) and $25,809,000, or $0.36 DEPS, respectively, compared to a loss of $1.21 DEPS and $4.58 DEPS a year ago for the same periods, respectively.

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Revenues increased on a linked quarter basis as a result of the Company's retail and small business deposit growth initiatives, improvements in loan production and significantly reduced levels of new problem loans.  Annualized revenue on a linked quarter basis grew by 8.5 percent as a result of improved margins and significant growth in noninterest income, while expenses net of credit related costs continued to decline.  

Nonperforming loans declined by 23.5 percent during the quarter and totaled 5.50 percent of loans outstanding.  Nonperforming loans have consistently declined for the past four quarters and have been reduced to $69.5 million, a level last achieved in the first quarter of 2008, compared with a peak level of $154.0 million or 10.23 percent of loans one year ago.  The improvement is the result of aggressive liquidation activities and a slowing of new problem loans.  Total loans (including nonperforming loans) delinquent 30 days or more fell to 4.66 percent of loans, the lowest level since the second quarter of 2008.  Early stage delinquencies (accruing loans 30 – 89 days past due) remained nominal at 0.60 percent of loans outstanding.  The allowance for loan losses remains strong at 3.04 percent compared with 3.10 percent the prior quarter and 3.25 percent the prior year when nonperforming assets peaked at $180.8 million.  

The Company's capital position remains strong with a total risk-based capital ratio of 18.9 percent at June 30, 2010, compared to 18.4 percent (estimated) at September 30, 2010.  New loan growth has been concentrated in industries that have not been as significantly impacted by the recession and residential home purchase transactions.  Accruing loans remained nearly unchanged at $1.194 billion at September 30, 2010, down only $15.9 million or 1.3 percent, as a result of loan production and less loans moving to nonaccrual status during the third quarter.  Total loans outstanding declined year-over-year by $241.2 million or 16.0 percent.  

Retail household growth for the entire year has improved as a result of the Company's retail deposit program and more recently expanded efforts to attract new commercial deposit accounts.  This quarter, new household acquisition was particularly strong with new personal checking retail relationships opened during the quarter up 19.1 percent from the same quarter a year ago and 14.1 percent from the second quarter.  Likewise, new commercial business checking deposit relationships opened increased by 30.7 percent compared with the same quarter one year ago.  

New personal checking relationships have increased as a result of our programs with improved market share, increased average services per household and decreased customer attrition.  Since initial implementation in 2008, the acquisition of new retail checking deposit households and the average services per household have increased 32.4 percent and 37.0 percent, respectively.

Nonperforming assets (nonperforming loans and foreclosed and repossessed assets) continued to decline each quarter in 2010, down $8 million from the second quarter and $79 million lower compared to the prior year's third quarter.  During the third quarter 2010, the Company sold approximately $5.8 million in nonperforming loans and foreclosed properties.  The sale included larger balance residential construction and land development loans.  This quarter the Company eliminated its exposure to large residential construction and land development loans.  Of the remaining small balance residential construction and land development loans of $21.3 million, $5.7 million are currently classified as nonperforming with an overall portfolio average balance of approximately $645,000.        

"The virtual elimination of our exposure to residential construction and land development loans which produced the majority of loan losses over the past three years allows us to accelerate our focus on revenue growth and franchise enhancement", said Dennis S. Hudson, III, Chairman and Chief Executive Officer of Seacoast.  "As predicted, our effort to address the slumping housing market in Florida which began early, well ahead of the industry as a whole, has positioned us to be among the first in the state to emerge from its negative effects."  

Other results for third quarter 2010:

  • Total revenues (excluding securities gains, net) increased $444,000 linked-quarter to $21.3 million, an increase of 8.5 percent annualized.
  • Service charges on deposits accounts increased 16.3 percent linked-quarter annualized as a result of 4,238 new households over the first nine months, up 11.2 percent compared to last year.
  • Debit card income for the quarter totaled $810,000, up $136,000 or 20.2 percent compared to the prior year's results, reflecting the growth in new deposit accounts.
  • Mortgage banking revenues grew as a result of expanded capacity and focused growth initiatives increasing year-over-year by $317,000 or 94.1 percent to $654,000 for the quarter.
  • Seacoast was the largest producer of residential mortgage purchase loans in its important and largest market, the Treasure Coast, for the first seven months of 2010.
  • Average checking and savings deposits grew 8.5 percent over the past year.
  • Noninterest bearing checking balances totaled 16.5 percent of average deposits at quarter-end compared with 15.8 percent the prior year.
  • Core deposits (total deposits excluding time deposits over $100,000 and brokered deposits) comprise 84.2 percent of deposits versus 78.6 percent a year ago.
  • Average cost of deposits totaled 0.84 percent, down 10 basis points from the second quarter of 2010 and 40 basis points lower compared to the prior year.  

Noninterest expenses totaled $20.2 million, down $262,000 from the prior year's third quarter.  Year-to-date noninterest expenses totaled $62.8 million compared to $61.1 million (excluding goodwill impairment) a year ago, all of which was attributed to higher legal and professional fees (including non-recurring consulting fees totaling approximately $2.1 million for development and implementation assistance related to our strategic plan and enterprise risk management projects).  The Company will continue to reduce its overhead and expects to implement cost saving measures in the last quarter of the year and the first quarter of 2011.  The goal is to reduce core operating expenses (total noninterest expense less nonrecurring professional fees for consulting, credit related legal costs and other direct expenses associated with other real estate owned ("OREO"), and losses from sale of OREO, collectively noncore operating expenses) by $2 million to $2.5 million annually.  Non-core operating expenses for the third quarter totaled $2.6 million, up from $1.1 million in the second quarter 2010.  On a year-to-date basis, non-core operating expenses totaled $8.9 million in 2010 compared to $5.0 million in 2009.  Core operating expenses totaled $17.7 million in the third quarter, slightly lower than the first and second quarter's results of $18.1 million and $18.2 million, respectively.   For the first nine months, core operating expenses totaled $53.9 million for 2010, down by $2.2 million from last year's first nine month total of $56.1 million, primarily the result of full year impacts of last year's branch consolidations.

Noninterest income, excluding securities gains and losses, increased 17.4 percent annualized when compared to the second quarter, reflecting increased revenues from service charges on deposit accounts, marine finance fees, wealth management, and mortgage banking fees offset by lower merchant income.  As previously indicated, the improvement in market share and focus programs to grow retail and commercial customer households is beginning to produce increased revenues.  While market uncertainty remains, we are seeing improvements across our business lines as we implement our "back to basics" community banking strategy.  We expect seasonal revenue improvements in these fee-based businesses to continue in the fourth quarter.

The net interest margin increased by 8 basis points to 3.35 percent in the third quarter 2010 compared to the second quarter of 2010 primarily as a result of lower nonperforming assets and lower costs for interest bearing liabilities.  Interest bearing deposit costs decreased 11 basis points to 1.01 percent in the third quarter 2010 and total interest bearing liabilities decreased from 1.17 percent for the second quarter to 1.09 percent in the third quarter.  The mix in deposits continues to improve as new households are on-boarded with average checking and savings deposits (excluding all time deposits) rising to 67 percent from 60 percent a year ago.  Checking and savings deposits totaled $1.134 billion at September 30, 2010, up $89 million or 8.5 percent compared to third quarter 2009.  Total average deposits declined $47.4 million over the year to $1.691 billion due to a $136.2 million decline in average time deposits attributable to the planned runoff of brokered and single service time deposit customers.  

The Company will host a conference call on Friday, October 22, 2010 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 October 22 by dialing (877) 213-9653 (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 October 22, 2010, an archived version of the webcast can be accessed from this same subsection of the website.  This webcast will be archived and available for one year.  

Seacoast, with approximately $2.0 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, 2009 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

Nine Months Ended

(Dollars in thousands,

September 30,

September 30,

  except share data)

2010


2009


2010


2009


Summary of Earnings









Net loss

$    (7,638)


$    (40,777)


$    (22,998)


$     (108,537)


Net loss available to common shareholders

(8,575)


(41,714)


(25,809)


(111,348)











Net interest income  (1)

16,532


19,101


50,107


56,329











Performance Ratios









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

(1.47)

%

(7.55)

%

(1.46)

%

(6.49)

%

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

(1.44)


(7.53)


(1.43)


(6.56)











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

(16.63)


(86.49)


(17.93)


(70.64)











Net interest margin  (1), (2)

3.35


3.74


3.35


3.61











Per Share Data









Net loss diluted-GAAP basis

$      (0.09)


$        (1.21)


$        (0.36)


$           (4.58)


Net loss basic-GAAP basis

(0.09)


(1.21)


(0.36)


(4.58)











Cash dividends declared

0.00


0.00


0.00


0.01























September 30,

    Increase/





2010


2009


    (Decrease)


Credit Analysis









Net charge-offs year-to-date



$      34,450


$      63,791


(46.0)

%

Net charge-offs to average loans



3.42

%

5.25

%

(34.9)


Loan loss provision year-to-date



$      27,705


$      83,253


(66.7)


Allowance to loans at end of period



3.04

%

3.25

%

(6.5)











Nonperforming loans



$      69,519


$    153,981


(54.9)


OREO



32,406


26,819


20.8


Total non-performing assets



$    101,925


$    180,800


(43.6)











Restructured loans (accruing)



$      64,403


$      16,061


301.0











Nonperforming assets to loans and other real









  estate owned at end of period



7.87

%

11.80

%

(33.3)











Nonperforming assets to total assets



5.06

%

8.45

%

(40.1)











Selected Financial Data









Total assets



$ 2,014,405


$ 2,139,915


(5.9)


Securities available for sale (at fair value)



426,931


342,742


24.6


Securities held for investment (at amortized cost)



23,500


19,296


21.8


Net loans



1,224,899


1,455,716


(15.9)


Deposits



1,637,030


1,761,287


(7.1)


Total shareholders' equity  



179,595


180,324


(0.4)


Common shareholders' equity



133,659


135,638


(1.5)


Book value per share common



1.43


2.57


(44.4)


Tangible book value per share



1.89


3.33


(43.2)


Tangible common book value per share (5)



1.39


2.48


(44.0)


Average shareholders' equity to average assets



8.15

%

9.18

%

(11.2)


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



6.48


6.14


5.5











Average Balances (Year-to-Date)









Total assets



$ 2,103,204


$ 2,237,422


(6.0)


Less: intangible assets



3,695


37,928


(90.3)


Total average tangible assets



$ 2,099,509


$ 2,199,494


(4.5)











Total equity



$    171,453


$    205,439


(16.5)


Less: intangible assets



3,695


37,928


(90.3)


Total average tangible equity



$    167,758


$    167,511


0.1





























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

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

(3)  The calculation of ROA and ROE do not include the mark-to-market unrealized gains (losses) because the unrealized gains (losses) are not included in net income (loss).

(4)  The Company believes that return on average assets and equity excluding the impacts of noncash amortization expense on intangible assets is a better measurement of the Company's trend in earnings growth.

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

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

n/m = not meaningful




CONDENSED CONSOLIDATED STATEMENTS OF INCOME


 (Unaudited)





SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


















Three Months Ended


Nine Months Ended



September 30,


September 30,

(Dollars in thousands, except per share data)


2010


2009


2010


2009










Interest on securities:









    Taxable


$       3,344


$       4,276


$     10,397


$     12,495

    Nontaxable


61


73


187


233

Interest and fees on loans


17,181


20,836


52,951


65,634

Interest on federal funds sold and other investments


252


163


763


420

        Total Interest Income


20,838


25,348


64,298


78,782










Interest on deposits


865


1,133


3,343


4,784

Interest on time certificates


2,725


4,283


8,798


14,813

Interest on borrowed money


787


881


2,266


3,040

        Total Interest Expense


4,377


6,297


14,407


22,637










        Net Interest Income


16,461


19,051


49,891


56,145

Provision for loan losses


8,866


45,374


27,705


83,253

        Net Interest Income (Loss) After Provision for Loan Losses


7,595


(26,323)


22,186


(27,108)










Noninterest income:









    Service charges on deposit accounts


1,511


1,732


4,335


4,879

    Trust income


500


517


1,467


1,555

    Mortgage banking fees


654


337


1,539


1,324

    Brokerage commissions and fees


306


326


849


1,095

    Marine finance fees


330


249


979


925

    Debit card income


810


674


2,349


1,955

    Other deposit based EFT fees


71


73


246


252

    Merchant income


322


371


1,200


1,355

    Other


297


348


998


1,074



4,801


4,627


13,962


14,414

    Securities gains, net


210


1,425


3,687


3,211

        Total Noninterest Income


5,011


6,052


17,649


17,625










Noninterest expenses:









    Salaries and wages


6,631


6,598


19,869


20,247

    Employee benefits


1,367


1,362


4,564


4,881

    Outsourced data processing costs


1,772


1,705


5,500


5,402

    Telephone / data lines


383


472


1,184


1,415

    Occupancy


1,928


2,072


5,781


6,283

    Furniture and equipment


595


675


1,789


2,004

    Marketing


577


639


2,146


1,548

    Legal and professional fees


2,491


1,653


6,194


4,648

    FDIC assessments


966


1,007


3,011


3,910

    Amortization of intangibles


212


315


773


944

    Asset dispositions expense


587


220


1,146


979

    Net loss on other real estate owned and repossessed assets


849


1,845


4,778


3,028

    Goodwill impairment


0


0


0


49,813

    Other


1,886


1,943


6,098


5,777

        Total Noninterest Expenses


20,244


20,506


62,833


110,879










        Loss Before Income Taxes


(7,638)


(40,777)


(22,998)


(120,362)

Provision for income taxes


0


0


0


11,825










        Net Loss


(7,638)


(40,777)


(22,998)


(108,537)

Preferred Stock Dividends and Accretion on Preferred Stock Discount


937


937


2,811


2,811

        Net Loss Available to Common Shareholders


$     (8,575)


$   (41,714)


$   (25,809)


$ (111,348)










Per share of common stock:


















    Net loss diluted


$       (0.09)


$       (1.21)


$       (0.36)


$       (4.58)

    Net loss basic


(0.09)


(1.21)


(0.36)


(4.58)

    Cash dividends declared


0.00


0.00


0.00


0.01










Average diluted shares outstanding


93,388,715


34,571,200


70,878,230


24,299,915

Average basic shares outstanding


93,388,715


34,571,200


70,878,230


24,299,915




CONDENSED CONSOLIDATED BALANCE SHEETS          




(Unaudited)



SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES














September 30,


December 31,


September 30,

(Dollars in thousands, except share amounts)


2010


2009


2009








Assets







  Cash and due from banks


$            27,833


$        32,200


$         32,515

  Interest bearing deposits with other banks


173,409


182,900


137,640

           Total  Cash and Cash Equivalents


201,242


215,100


170,155








  Securities:







       Available for sale (at fair value)


426,931


393,648


342,742

       Held for investment (at amortized cost)


23,500


17,087


19,296

           Total Securities


450,431


410,735


362,038








  Loans available for sale


7,799


18,412


5,857








  Loans, net of unearned income


1,263,346


1,397,503


1,504,566

  Less: Allowance for loan losses


(38,447)


(45,192)


(48,850)

           Net Loans


1,224,899


1,352,311


1,455,716








  Bank premises and equipment, net


36,689


38,932


42,143

  Other real estate owned


32,406


25,385


26,819

  Goodwill and other intangible assets


3,348


4,121


4,436

  Other assets


57,591


86,319


72,751



$       2,014,405


$   2,151,315


$    2,139,915








Liabilities and Shareholders' Equity







Liabilities







  Deposits







       Demand deposits (noninterest bearing)


$          276,739


$      268,789


$       264,092

       Savings deposits


814,098


838,288


788,154

       Other time certificates


287,406


326,070


332,788

       Brokered time certificates


11,788


38,656


55,469

       Time certificates of $100,000 or more


246,999


307,631


320,784

           Total Deposits


1,637,030


1,779,434


1,761,287








  Federal funds purchased and securities sold under







      agreements to repurchase, maturing within 30 days


62,522


105,673


68,797

   Borrowed funds


50,000


50,000


65,053

   Subordinated debt


53,610


53,610


53,610

   Other liabilities


31,648


10,663


10,844



1,834,810


1,999,380


1,959,591








Shareholders' Equity







   Preferred stock - Series A


45,936


44,999


44,686

   Common stock


9,345


5,887


5,285

   Additional paid in capital


221,426


178,096


166,800

   Retained earnings


(102,134)


(78,200)


(39,775)

   Treasury stock


(1)


(855)


(1,181)



174,572


149,927


175,815

   Accumulated other comprehensive gain, net


5,023


2,008


4,509

           Total Shareholders' Equity


179,595


151,935


180,324



$       2,014,405


$   2,151,315


$    2,139,915








Common Shares Outstanding


93,452,708


58,867,229


52,849,625








Note:  The balance sheet at December 31, 2009 has been derived from the audited financial statements at that date.




CONSOLIDATED QUARTERLY FINANCIAL  DATA 


(Unaudited)








SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES





















QUARTERS




2010


2009

Last 12

(Dollars in thousands, except per share data)

Third


Second


First


Fourth

Months

Net loss

$        (7,638)


$      (13,796)


$          (1,564)


$       (38,149)


$  (61,147)













Operating Ratios











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

(1.47)

%

(2.61)

%

(0.30)

%

(6.91)

%

(2.88)

%

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

(1.44)


(2.58)


(0.26)


(6.89)


(2.85)













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

(16.63)


(30.73)


(4.18)


(84.51)


(35.27)













  Net interest margin (1),(2)

3.35


3.27


3.48


3.37


3.35


  Average equity to average assets

8.83


8.49


7.13


8.18


8.16













Credit Analysis











  Net charge-offs

$       10,700


$       20,209


$           3,541


$        45,172


$   79,622


  Net charge-offs to average loans

3.29

%

5.95

%

1.03

%

12.12

%

5.76

%

  Loan loss provision

$         8,866


$       16,771


$           2,068


$        41,514


$   69,219


  Allowance to loans at end of period

3.04

%

3.10

%

3.18

%

3.23

%














 Restructured Loans (accruing)

$       64,403


$       64,876


$         60,032


$        57,433















  Nonperforming loans

$       69,519


$       90,885


$         96,321


$        97,876




  OREO

32,406


19,018


19,076


25,385




  Nonperforming assets

$     101,925


$     109,903


$       115,397


$      123,261




  Nonperforming assets to loans and











      other real estate owned at end











      of period

7.87

%

8.33

%

8.29

%

8.66

%



  Nonperforming assets to total assets

5.06


5.25


5.44


5.73




  Nonaccrual loans and accruing loans











      90 days or more past due to loans











      outstanding at end of period

5.50


6.99


7.03


7.01















Per Share Common Stock











  Net loss diluted-GAAP basis

$         (0.09)


$          (0.25)


$            (0.04)


$          (0.73)


$    (0.97)


  Net loss basic-GAAP basis

(0.09)


(0.25)


(0.04)


(0.73)


(0.97)













  Cash dividends declared

-


-


-


-


-


  Book value per share common

1.43


1.51


1.80


1.82















Average Balances











Total assets

$  2,062,857


$  2,120,388


$    2,127,074


$  2,189,699




Less: Intangible assets

3,452


3,669


3,969


4,274




Total average tangible assets

$  2,059,405


$  2,116,719


$    2,123,105


$  2,185,425















Total equity

$     182,202


$     180,093


$       151,731


$     179,093




Less: Intangible assets

3,452


3,669


3,969


4,274




Total average tangible equity

$     178,750


$     176,424


$       147,762


$     174,819




(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.































September 30,


December 31,


September 30,


SECURITIES





2010


2009


2009


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





$       4,226


$         3,688


$         1,198


Mortgage-backed





417,914


384,864


336,168


Obligations of states and political subdivisions





1,756


2,063


2,102


Other securities





3,035


3,033


3,274


  Securities Available for Sale





426,931


393,648


342,742













Mortgage-backed





20,752


12,853


14,589


Obligations of states and political subdivisions





2,748


4,234


4,707


  Securities Held for Investment





23,500


17,087


19,296


      Total Securities





$   450,431


$     410,735


$     362,038





























September 30,


December 31,


September 30,


LOANS





2010


2009


2009


Construction and land development





$     92,149


$     162,868


$     228,111


Real estate mortgage





1,064,739


1,109,077


1,143,476


Installment loans to individuals





52,192


64,024


66,739


Commercial and financial





53,982


61,058


65,954


Other loans





284


476


286


      Total Loans





$ 1,263,346


$  1,397,503


$  1,504,566





AVERAGE BALANCES, YIELDS AND RATES (1)

(Unaudited)









SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES













2010


2009




Third Quarter


Second Quarter


Third Quarter


Average

Yield/

Average

Yield/

Average

Yield/

(Dollars in thousands)

Balance

Rate


Balance

Rate


Balance

Rate











Assets










Earning assets:










   Securities:










        Taxable

$    402,970

3.32

%

$    388,538

3.42

%

$    348,770

4.90

%

        Nontaxable

5,463

6.81


5,703

6.10


6,742

6.59


                  Total Securities

408,433

3.37


394,241

3.46


355,512

4.93












   Federal funds sold and other










        investments

259,492

0.39


267,380

0.41


97,215

0.67












   Loans,  net

1,291,879

5.29


1,361,343

5.19


1,571,186

5.26












                 Total Earning Assets

1,959,804

4.23


2,022,964

4.22


2,023,913

4.98












Allowance for loan losses

(40,434)



(42,415)



(43,124)



Cash and due from banks

27,311



28,559



28,614



Premises and equipment

37,421



38,182



42,636



Other assets

78,755



73,098



90,189














$ 2,062,857



$ 2,120,388



$ 2,142,228























Liabilities and Shareholders' Equity










Interest-bearing liabilities:










     NOW  

$      73,188

0.28

%

$      52,258

0.36

%

$      50,662

0.51

%

     Savings deposits

107,241

0.15


105,984

0.23


102,429

0.28


     Money market accounts

675,273

0.46


726,018

0.62


618,240

0.64


     Time deposits

556,395

1.94


574,658

1.99


692,616

2.45


     Federal funds purchased and










       other short term borrowings

75,085

0.29


86,836

0.28


86,264

0.33


     Other borrowings

103,610

2.80


103,610

2.65


118,745

2.71












                    Total Interest-Bearing Liabilities

1,590,792

1.09


1,649,364

1.17


1,668,956

1.50












Demand deposits (noninterest-bearing)

278,424



279,960



273,972



Other liabilities

11,439



10,971



12,243



                    Total Liabilities

1,880,655



1,940,295



1,955,171













Shareholders' equity

182,202



180,093



187,057














$ 2,062,857



$ 2,120,388



$ 2,142,228













Interest expense as a % of earning assets  


0.89

%


0.96

%


1.23

%

Net interest income as a % of earning assets  


3.35



3.27



3.74
































(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.




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



(Unaudited)









SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES





































2008


2009


2010


Nonperforming




















Construction and land development


1st Qtr

2nd Qtr

3rd Qtr

4th Qtr


1st Qtr

2nd Qtr

3rd Qtr

4th Qtr


1st Qtr

2nd Qtr

3rd Qtr


3rd Qtr

Number

  Residential:



















    Condominiums

>$4 million


$        30.6

$     26.3

$     19.6

$         8.6


$       8.4

$       7.9

$       5.3

$        -


$       -

$       -

$      -


$        -

-


<$4 million


26.6

21.1

13.0

8.8


7.9

8.8

3.7

6.1


0.9

0.9

0.9


0.9

1




















    Town homes

>$4 million


19.4

17.1

17.1

-


-

-

-

-


-

-

-


-

-


<$4 million


4.4

2.9

4.6

6.1


4.2

2.3

-

-


-

-

-


-

-




















    Single Family Residences

>$4 million


20.8

21.2

13.5

11.9


6.6

6.5

-

-


-

-

-


-

-


<$4 million


35.9

28.3

23.7

14.9


13.9

10.3

7.1

4.1


3.9

3.6

3.8


0.3

4




















    Single Family Land & Lots

>$4 million


85.1

64.3

40.3

22.1


21.8

21.8

5.9

5.9


5.9

5.9

-


-

-


<$4 million


27.0

30.8

29.9

30.7


29.6

21.5

19.5

16.6


15.7

9.6

10.3


3.5

11




















    Multifamily

>$4 million


7.8

7.8

7.8

7.8


7.8

7.8

6.6

6.6


6.6

4.3

-


-

-


<$4 million


24.8

26.2

22.9

19.0


17.0

9.8

9.5

8.3


8.1

8.2

6.3


1.0

2




















TOTAL

>$4 million


163.7

136.7

98.3

50.4


44.6

44.0

17.8

12.5


12.5

10.2

-


-

-

TOTAL

<$4 million


118.7

109.3

94.1

79.5


72.6

52.7

39.8

35.1


28.6

22.3

21.3


5.7

18

GRAND TOTAL



$      282.4

$   246.0

$   192.4

$     129.9


$   117.2

$     96.7

$     57.6

$     47.6


$    41.1

$    32.5

$   21.3


$      5.7

18




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




(Unaudited)






SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES






























2008


2009


2010



1st Qtr

2nd Qtr

3rd Qtr

4th Qtr


1st Qtr

2nd Qtr

3rd Qtr

4th Qtr


1st Qtr

2nd Qtr

3rd Qtr

Construction and land development















  Residential















     Condominiums


$         57.2

$         47.4

$         32.6

$         17.4


$         16.3

$         16.7

$           9.0

$         6.1


$           0.9

$           0.9

$           0.9

     Townhomes


23.8

20.0

21.7

6.1


4.2

2.3

-

-


-



     Single family residences


56.7

49.5

37.2

26.8


20.5

16.8

7.1

4.1


3.9

3.6

3.8

     Single family land and lots


112.1

95.1

70.2

52.8


51.4

43.3

25.4

22.5


21.6

15.5

10.3

     Multifamily


32.6

34.0

30.7

26.8


24.8

17.6

16.1

14.9


14.7

12.5

6.3



282.4

246.0

192.4

129.9


117.2

96.7

57.6

47.6


41.1

32.5

21.3

  Commercial















     Office buildings


29.1

31.1

27.8

17.3


17.4

13.8

13.8

13.9


13.7

-

-

     Retail trade


60.4

63.6

68.5

68.7


70.0

55.9

23.0

3.9


3.9

-

-

     Land


92.5

75.4

73.9

73.3


60.9

51.2

50.8

45.6


45.7

38.5

35.1

     Industrial


16.9

20.8

20.7

13.3


9.0

8.5

8.2

2.5


2.5

0.3

0.3

     Healthcare


1.0

1.0

-

-


5.7

6.0

4.8

4.8


-

-

-

     Churches and educational facilities


-

0.1

-

-


-

-

-

-


-

-

-

     Lodging


-

-

-

-


0.6

-

-

-


-

-

-

     Convenience stores


1.8

-

-

-


-

-

-

-


-

-

-

     Marina


26.8

28.9

30.5

30.7


31.6

30.0

28.1

6.8


6.8

-

-

     Other


11.3

6.3

5.4

6.0


6.2

1.4

-

-


-

-

-



239.8

227.2

226.8

209.3


201.4

166.8

128.7

77.5


72.6

38.8

35.4

  Individuals















     Lot loans


39.4

40.0

38.4

35.7


34.0

32.4

30.7

29.3


28.9

27.4

26.3

     Construction


32.4

27.1

27.4

20.3


16.2

11.8

11.1

8.5


8.7

8.2

9.1



71.8

67.1

65.8

56.0


50.2

44.2

41.8

37.8


37.6

35.6

35.4

  Total construction and land development


594.0

540.3

485.0

395.2


368.8

307.7

228.1

162.9


151.3

106.9

92.1
















Real estate mortgages















  Residential real estate















     Adjustable


317.6

318.8

316.5

329.0


333.1

328.0

325.9

289.4


290.5

295.9

300.9

     Fixed rate


89.1

90.2

93.4

95.5


90.8

90.6

89.5

88.6


87.6

86.0

84.1

     Home equity mortgages


91.7

93.1

84.3

84.8


85.5

83.8

83.9

86.8


89.1

79.0

74.4

     Home equity lines


56.3

59.4

59.7

58.5


60.3

60.1

59.7

60.1


60.1

58.8

58.4



554.7

561.5

553.9

567.8


569.7

562.5

559.0

524.9


527.3

519.7

517.8

  Commercial real estate















     Office buildings


144.3

142.3

143.6

146.4


140.6

141.6

144.2

132.3


131.1

128.2

122.9

     Retail trade


83.8

93.5

101.6

111.9


109.1

120.0

151.4

164.6


163.5

155.9

152.0

     Land


-

-

0.6

-


-

-

-

-


-

-

-

     Industrial


104.3

93.3

92.2

94.7


95.3

93.0

89.3

88.4


81.7

84.0

79.8

     Healthcare


39.9

33.6

31.6

29.2


28.3

30.9

25.4

24.7


29.1

29.4

29.0

     Churches and educational facilities


40.2

36.5

35.6

35.2


34.8

34.6

30.8

29.6


29.1

28.5

29.4

     Recreation


2.8

1.8

1.8

1.7


1.7

1.4

3.3

3.0


3.0

3.0

2.9

     Multifamily


20.0

19.1

19.2

27.2


27.2

31.7

35.1

29.7


25.3

23.6

23.2

     Mobile home parks


3.2

3.1

3.1

3.0


3.0

5.6

5.6

5.4


5.3

2.6

2.6

     Lodging


27.9

28.0

26.7

26.6


26.3

26.3

25.6

25.5


23.5

23.4

22.1

     Restaurant


8.0

9.0

8.6

6.2


6.1

5.1

5.0

4.7


4.7

4.6

4.5

     Agricultural


12.4

9.0

8.7

8.5


8.2

11.8

12.0

11.7


11.4

10.8

10.7

     Convenience stores


23.1

24.9

23.6

23.5


23.3

23.2

22.8

22.1


22.3

21.0

18.9

     Other


40.1

41.6

42.5

43.6


43.0

47.6

34.0

42.4


41.0

47.8

48.9



550.0

535.7

539.4

557.7


546.9

572.8

584.5

584.1


571.0

562.8

546.9

  Total real estate mortgages


1,104.7

1,097.2

1,093.3

1,125.5


1,116.6

1,135.3

1,143.5

1,109.0


1,098.3

1,082.5

1,064.7
















Commercial & financial


93.9

94.8

88.5

82.8


75.5

71.8

66.0

61.1


62.1

49.9

54.0
















Installment loans to individuals















     Automobile and trucks


24.1

23.0

21.9

20.8


19.4

18.0

16.6

15.3


14.4

12.9

11.6

     Marine loans


33.3

25.2

26.0

26.0


26.3

26.9

26.8

26.4


25.3

27.3

19.7

     Other


27.5

27.9

27.4

26.1


25.7

24.3

23.3

22.3


21.7

20.8

20.9



84.9

76.1

75.3

72.9


71.4

69.2

66.7

64.0


61.4

61.0

52.2
















Other


0.5

0.4

0.5

0.3


0.3

0.3

0.3

0.5


0.2

0.3

0.3



$    1,878.0

$    1,808.8

$    1,742.6

$    1,676.7


$    1,632.6

$    1,584.3

$    1,504.6

$  1,397.5


$    1,373.3

$    1,300.6

$    1,263.3




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




SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES























2008


2009


2010



1st Qtr

2nd Qtr

3rd Qtr

4th Qtr


1st Qtr

2nd Qtr

3rd Qtr

4th Qtr


1st Qtr

2nd Qtr

3rd Qtr

Construction and land development















  Residential















     Condominiums


$         (3.0)

$         (9.8)

$       (14.8)

$       (15.2)


$         (1.1)

$           0.4

$         (7.7)

$         (2.9)


$         (5.2)

$            -

$            -

     Townhomes


(1.2)

(3.8)

1.7

(15.6)


(1.9)

(1.9)

(2.3)

-


-

-

-

     Single family residences


(2.3)

(7.2)

(12.3)

(10.4)


(6.3)

(3.7)

(9.7)

(3.0)


(0.2)

(0.3)

0.2

     Single family land and lots


(4.3)

(17.0)

(24.9)

(17.4)


(1.4)

(8.1)

(17.9)

(2.9)


(0.9)

(6.1)

(5.2)

     Multifamily


(1.9)

1.4

(3.3)

(3.9)


(2.0)

(7.2)

(1.5)

(1.2)


(0.2)

(2.2)

(6.2)



(12.7)

(36.4)

(53.6)

(62.5)


(12.7)

(20.5)

(39.1)

(10.0)


(6.5)

(8.6)

(11.2)

  Commercial















     Office buildings


(1.8)

2.0

(3.3)

(10.5)


0.1

(3.6)

-

0.1


(0.2)

(13.7)

-

     Retail trade


(8.6)

3.2

4.9

0.2


1.3

(14.1)

(32.9)

(19.1)


-

(3.9)

-

     Land


9.9

(17.1)

(1.5)

(0.6)


(12.4)

(9.7)

(0.4)

(5.2)


0.1

(7.2)

(3.4)

     Industrial


3.9

3.9

(0.1)

(7.4)


(4.3)

(0.5)

(0.3)

(5.7)


-

(2.2)

-

     Healthcare


-

-

(1.0)

-


5.7

0.3

(1.2)

-


(4.8)

-

-

     Churches and educational facilities


-

0.1

(0.1)

-


-

-

-

-


-

-

-

     Lodging


(11.2)

-

-

-


0.6

(0.6)

-

-


-

-

-

     Convenience stores


0.1

(1.8)

-

-


-

-

-

-


-

-

-

     Marina


3.7

2.1

1.6

0.2


0.9

(1.6)

(1.9)

(21.3)


(0.0)

(6.8)

-

     Other


1.4

(5.0)

(0.9)

0.6


0.2

(4.8)

(1.4)

-


-

-

-



(2.6)

(12.6)

(0.4)

(17.5)


(7.9)

(34.6)

(38.1)

(51.2)


(4.9)

(33.8)

(3.4)

  Individuals















     Lot loans


-

0.6

(1.6)

(2.7)


(1.7)

(1.6)

(1.7)

(1.4)


(0.4)

(1.5)

(1.1)

     Construction


(0.3)

(5.3)

0.3

(7.1)


(4.1)

(4.4)

(0.7)

(2.6)


0.2

(0.5)

0.9



(0.3)

(4.7)

(1.3)

(9.8)


(5.8)

(6.0)

(2.4)

(4.0)


(0.2)

(2.0)

(0.2)

  Total construction and land development


(15.6)

(53.7)

(55.3)

(89.8)


(26.4)

(61.1)

(79.6)

(65.2)


(11.6)

(44.4)

(14.8)
















Real estate mortgages















  Residential real estate















     Adjustable


(1.9)

1.2

(2.3)

12.5


4.1

(5.1)

(2.1)

(36.5)


1.1

5.4

5.0

     Fixed rate


1.6

1.1

3.2

2.1


(4.7)

(0.2)

(1.1)

(0.9)


(1.0)

(1.6)

(1.9)

     Home equity mortgages


0.3

1.4

(8.8)

0.5


0.7

(1.7)

0.1

2.9


2.3

(10.1)

(4.6)

     Home equity lines


(2.8)

3.1

0.3

(1.2)


1.8

(0.2)

(0.4)

0.4


-

(1.3)

(0.4)



(2.8)

6.8

(7.6)

13.9


1.9

(7.2)

(3.5)

(34.1)


2.4

(7.6)

(1.9)

  Commercial real estate















     Office buildings


12.6

(2.0)

1.3

2.8


(5.8)

1.0

2.6

(11.9)


(1.2)

(2.9)

(5.3)

     Retail trade


7.6

9.7

8.1

10.3


(2.8)

10.9

31.4

13.2


(1.1)

(7.6)

(3.9)

     Land


(5.3)

-

0.6

(0.6)


-

-

-

-


-

-

-

     Industrial


(1.2)

(11.0)

(1.1)

2.5


0.6

(2.3)

(3.7)

(0.9)


(6.7)

2.3

(4.2)

     Healthcare


7.5

(6.3)

(2.0)

(2.4)


(0.9)

2.6

(5.5)

(0.7)


4.4

0.3

(0.4)

     Churches and educational facilities


-

(3.7)

(0.9)

(0.4)


(0.4)

(0.2)

(3.8)

(1.2)


(0.5)

(0.6)

0.9

     Recreation


(0.2)

(1.0)

-

(0.1)


-

(0.3)

1.9

(0.3)


-

-

(0.1)

     Multifamily


6.2

(0.9)

0.1

8.0


-

4.5

3.4

(5.4)


(4.4)

(1.7)

(0.4)

     Mobile home parks


(0.7)

(0.1)

-

(0.1)


-

2.6

-

(0.2)


(0.1)

(2.7)

-

     Lodging


5.2

0.1

(1.3)

(0.1)


(0.3)

-

(0.7)

(0.1)


(2.0)

(0.1)

(1.3)

     Restaurant


(0.2)

1.0

(0.4)

(2.4)


(0.1)

(1.0)

(0.1)

(0.3)


-

(0.1)

(0.1)

     Agricultural


(0.5)

(3.4)

(0.3)

(0.2)


(0.3)

3.6

0.2

(0.3)


(0.3)

(0.6)

(0.1)

     Convenience stores


(0.1)

1.8

(1.3)

(0.1)


(0.2)

(0.1)

(0.4)

(0.7)


0.2

(1.3)

(2.1)

     Other


1.8

1.5

0.9

1.1


(0.6)

4.6

(13.6)

8.4


(1.4)

6.8

1.1



32.7

(14.3)

3.7

18.3


(10.8)

25.9

11.7

(0.4)


(13.1)

(8.2)

(15.9)

  Total real estate mortgages


29.9

(7.5)

(3.9)

32.2


(8.9)

18.7

8.2

(34.5)


(10.7)

(15.8)

(17.8)
















Commercial & financial


(32.8)

0.9

(6.3)

(5.7)


(7.3)

(3.7)

(5.8)

(4.9)


1.0

(12.2)

4.1
















Installment loans to individuals















     Automobile and trucks


(0.9)

(1.1)

(1.1)

(1.1)


(1.4)

(1.4)

(1.4)

(1.3)


(0.9)

(1.5)

(1.3)

     Marine loans


0.1

(8.1)

0.8

-


0.3

0.6

(0.1)

(0.4)


(1.1)

2.0

(7.6)

     Other


(0.7)

0.4

(0.5)

(1.3)


(0.4)

(1.4)

(1.0)

(1.0)


(0.6)

(0.9)

0.1



(1.5)

(8.8)

(0.8)

(2.4)


(1.5)

(2.2)

(2.5)

(2.7)


(2.6)

(0.4)

(8.8)




-

-

-



-

-

-



-

-

Other


(0.4)

(0.1)

0.1

(0.2)


-

-

-

0.2


(0.3)

0.1

-



$       (20.4)

$       (69.2)

$       (66.2)

$       (65.9)


$       (44.1)

$       (48.3)

$       (79.7)

$     (107.1)


$       (24.2)

$       (72.7)

$       (37.3)



SOURCE Seacoast Banking Corporation of Florida



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