Seacoast Reports Record Earnings for the First Quarter

Apr 12, 2001, 01:00 ET from Seacoast Banking Corporation of Florida

    STUART, Fla., April 12 /PRNewswire/ --
 Seacoast Banking Corporation of Florida (Nasdaq:   SBCFA), a bank holding
 company whose subsidiary is First National Bank and Trust Company of the
 Treasure Coast, today reported net income totaling $3,278,000 for the first
 quarter of 2001, or $0.69 diluted earnings per share (DEPS), compared to
 $3,107,000 or $0.64 DEPS for the first quarter a year ago, an 8 percent
 increase.
     "Our record operating results were achieved through a continuation of an
 improved net interest margin, growing revenues from new noninterest income
 sources, and improved credit quality," commented Dennis S. Hudson, III, Chief
 Executive Officer of Seacoast.  "The results are particularly pleasing given
 the impact of recent stock market volatility on our retail brokerage
 revenues."
 
      Highlights for the quarter included the following:
 
     * Return on average assets increased to 1.17 percent compared to
 1.15 percent for the first quarter of 2000;
     * The return on average equity for the first quarter was 15.06 percent
 compared to 14.75 percent the first quarter of 2000;
     * Average equity to average assets remained strong at 7.76 percent
 compared to 7.82 percent one year earlier;
     * Residential mortgage production continued to grow with a total of
 $41 million in residential applications processed in the first quarter of 2001
 compared to $36 million in 2000, an increase of 14 percent;
     * Seacoast Marine originated loans totaling $8.5 million for the period
 ended March 31, 2001, compared to $8.2 million in the same period for 2000.
 
     The net interest margin for the quarter was 4.10 percent, representing an
 increase from the 3.93 percent achieved in the fourth quarter 2000, but lower
 than last year's first quarter margin of 4.24 percent. The improved net
 interest margin resulted from favorable monetary conditions and liquidity
 which enabled deposit rates to decline.
     Net interest income increased to $10,959,000 or 4.4 percent from fourth
 quarter 2000 and grew by 1.4 percent from last year's first quarter.
     The cost for interest bearing deposits declined to 4.32 percent from 4.41
 percent in the fourth quarter 2000.  The lower interest rates and uncertain
 economic environment are expected to aid the growth in deposits as customers
 seek the stability of bank products.  Average interest bearing deposits
 increased $17.8 million or 9.0 percent annualized growth during the first
 quarter 2001, compared to $16. 1 million or 8.5 percent one year ago.
     Average loans for the quarter were $835.5 million, up 5.5 percent from the
 first quarter last year, but a decrease of $1.6 million from the fourth
 quarter 2000.  During the first quarter 2001, the Company securitized $10
 million of residential mortgage loans and originated and sold another $14
 million to the secondary market.  The $10 million security was sold during the
 quarter and generated $78,000 in gains.  Other consumer loans increased an
 annualized 13.1 percent from the fourth quarter 2000.
     Noninterest income, excluding securities gains, increased 2.8 percent when
 compared to the prior year's first quarter, reflecting reduced revenues from
 investment management services, offset by growing revenues from new sources of
 noninterest income.  During 2000, the residential mortgage production function
 was refocused to originate and generate increased fee income from the sale of
 mortgage loans to the secondary market.  During the first quarter 2001,
 noninterest income related to mortgage loan production grew by 154 percent to
 $449,000 compared with $177,000 earned in the first quarter of 2000.
     Core deposit growth continued to enhance fees by increasing the customer
 base and usage of check cards.  During the first quarter 2001, a total of
 $166,000 in interchange income was earned compared to $92,000 for the same
 period in 2000 and $122,000 in the fourth quarter 2000.
     Beginning in the fourth quarter of 2000, slower economic activity affected
 revenues from investment management services.  This trend continued in the
 first quarter of 2001 with brokerage commissions and fees totaling $400,000, a
 decline of $85,000 from the fourth quarter of 2000 and a decline of $494,000
 from the first quarter of 2000, as a result of consumers shifting from the
 purchase of investment products to more conservative deposit products.
     Net loan recoveries were $6,000 for the first quarter of 2001, compared to
 net charge-offs of $252,000 and $133,000 for all of 2000 and 1999,
 respectively.  Loan delinquencies, nonaccruals and the percentage of loans
 past due 90 days to average loans declined to 0.25 percent at March 31, 2001,
 compared to 0.45 percent one year earlier.  Nonperforming assets declined by
 $1,501,000 and totaled only $2,254,000 at quarter-end.  The consistent
 superior credit quality and low net charge-offs allowed the Company to
 eliminate the provision for loan losses for the quarter.  The prior year's
 provision for the quarter was $150,000.
     Seacoast with approximately $1.2 billion in assets is the largest
 independent commercial bank headquartered on Florida's Treasure Coast, one of
 the wealthiest areas in Florida and among the fastest growing in the nation.
 
     "Safe Harbor" Statement under the Private Securities Litigation Reform Act
 of 1995:  Statements in this press release regarding Seacoast's business which
 are not historical facts are "forward-looking statements" that involve risks
 and uncertainties.
     For a discussion of such risks and uncertainties, which could cause actual
 results to differ from those contained in the forward-looking statements, see
 "Special Cautionary Notice Regarding Forward-Looking Statements" in the
 company's most recent Annual Report on Form 10-K.
 
     FINANCIAL HIGHLIGHTS (Unaudited)
     SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
 
                                                        Three Months Ended
     (Dollars in thousands,                                  March 31
     except per share data)                             2001           2000
     Summary of Earnings
     Net income                                        $3,278         $3,107
     Net interest income(1)                            10,959         10,805
 
     Performance Ratios
     Return on average assets
      (2), (3)                                          1.17%          1.15%
     Return on average
      shareholders' equity
      (2), (3)                                          15.06          14.75
     Net interest margin
      (1), (2)                                           4.10           4.24
 
     Per Share Data
     Net income diluted                                 $0.69          $0.64
     Net income basic                                    0.69           0.64
     Cash dividends declared
      on Class A common                                  0.28           0.26
 
 
                                            March 30,             Increase/
                                      2001            2000       (Decrease)
     Credit Analysis
     Net charge-offs (recoveries)       $(6)             $17      (135.3)%
     Net charge-offs to average
      loans                            0.00%           0.01%       (100.0)
     Loan loss provision                $ --            $150       (100.0)
     Allowance to loans at
      end of period                    0.87%           0.87%           0.0
     Nonperforming assets            $ 2,254         $ 3,755        (40.0)
     Nonperforming assets to
      loans and other
      real estate owned
      at end of period                 0.27%           0.46%        (41.3)
 
     Selected Financial Data
     Total assets                 $1,170,008      $1,109,998           5.4
     Securities, at market           221,960         192,501          15.3
     Securities, at
      amortized cost                  17,723          20,597        (14.0)
     Net loans                       823,932         802,101           2.7
     Deposits                        982,290         949,382           3.5
     Shareholders' equity             88,446          78,422          12.8
     Book value per share              18.79           16.30          15.3
     Tangible book value per share     17.85           15.23          17.2
     Average shareholders' equity
      to average assets                7.76%           7.82%         (0.8)
 
     (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.
 
     CONSOLIDATED QUARTERLY FINANCIAL DATA    (Unaudited)
     SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
 
                                        Quarters
 
     (Dollars in
     thousands,
     except per      2001          2000         2000         2000      Last 12
     share data)     First       Fourth        Third       Second      Months
 
     Operating Ratios
     Return on
      average
      assets
      (2),(3)        1.17%        1.05%        1.07%        1.11%       1.10%
     Return on
      average
      shareholders'
      equity (2),(3) 15.06        13.40        13.80        14.45       14.15
     Net interest
      margin (1),(2)  4.10         3.93         3.90         4.08        3.99
     Average equity
      to average
      assets          7.76         7.81         7.78         7.65        7.75
 
     Credit Analysis
      Net
      charge-offs
      (recoveries)    $(6)          $40         $144          $51        $229
     Net
      charge-offs
      to average
      loans          0.00%        0.02%        0.07%        0.02%       0.03%
     Loan loss
      provision      $ ---         $150         $150         $150        $450
     Allowance
      to loans
      at end
      of period      0.87%        0.85%        0.85%        0.86%
     Nonperforming
      assets        $2,254       $2,445       $2,397       $2,836
     Nonperforming
      assets to
      loans and other
      real estate
      owned at end
      of period      0.27%        0.29%        0.29%        0.34%
     Nonaccrual
      loans and
      accruing
      loans 90 days
      or more past
      due to loans
      outstanding
      at end of
      period          0.25         0.26         0.27         0.33
 
     Per Share
      Common Stock
     Net income
      diluted        $0.69        $0.62        $0.62        $0.63       $2.56
     Net income
      basic           0.69         0.62         0.63         0.64        2.58
     Cash dividends
      declared on
      Class A
      common          0.28         0.28         0.26         0.26        1.08
     Book value
      per share      18.79        17.87        17.26        16.64
 
     (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 ratios which may be expected for the entire year.
     (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.
 
 

SOURCE Seacoast Banking Corporation of Florida
    STUART, Fla., April 12 /PRNewswire/ --
 Seacoast Banking Corporation of Florida (Nasdaq:   SBCFA), a bank holding
 company whose subsidiary is First National Bank and Trust Company of the
 Treasure Coast, today reported net income totaling $3,278,000 for the first
 quarter of 2001, or $0.69 diluted earnings per share (DEPS), compared to
 $3,107,000 or $0.64 DEPS for the first quarter a year ago, an 8 percent
 increase.
     "Our record operating results were achieved through a continuation of an
 improved net interest margin, growing revenues from new noninterest income
 sources, and improved credit quality," commented Dennis S. Hudson, III, Chief
 Executive Officer of Seacoast.  "The results are particularly pleasing given
 the impact of recent stock market volatility on our retail brokerage
 revenues."
 
      Highlights for the quarter included the following:
 
     * Return on average assets increased to 1.17 percent compared to
 1.15 percent for the first quarter of 2000;
     * The return on average equity for the first quarter was 15.06 percent
 compared to 14.75 percent the first quarter of 2000;
     * Average equity to average assets remained strong at 7.76 percent
 compared to 7.82 percent one year earlier;
     * Residential mortgage production continued to grow with a total of
 $41 million in residential applications processed in the first quarter of 2001
 compared to $36 million in 2000, an increase of 14 percent;
     * Seacoast Marine originated loans totaling $8.5 million for the period
 ended March 31, 2001, compared to $8.2 million in the same period for 2000.
 
     The net interest margin for the quarter was 4.10 percent, representing an
 increase from the 3.93 percent achieved in the fourth quarter 2000, but lower
 than last year's first quarter margin of 4.24 percent. The improved net
 interest margin resulted from favorable monetary conditions and liquidity
 which enabled deposit rates to decline.
     Net interest income increased to $10,959,000 or 4.4 percent from fourth
 quarter 2000 and grew by 1.4 percent from last year's first quarter.
     The cost for interest bearing deposits declined to 4.32 percent from 4.41
 percent in the fourth quarter 2000.  The lower interest rates and uncertain
 economic environment are expected to aid the growth in deposits as customers
 seek the stability of bank products.  Average interest bearing deposits
 increased $17.8 million or 9.0 percent annualized growth during the first
 quarter 2001, compared to $16. 1 million or 8.5 percent one year ago.
     Average loans for the quarter were $835.5 million, up 5.5 percent from the
 first quarter last year, but a decrease of $1.6 million from the fourth
 quarter 2000.  During the first quarter 2001, the Company securitized $10
 million of residential mortgage loans and originated and sold another $14
 million to the secondary market.  The $10 million security was sold during the
 quarter and generated $78,000 in gains.  Other consumer loans increased an
 annualized 13.1 percent from the fourth quarter 2000.
     Noninterest income, excluding securities gains, increased 2.8 percent when
 compared to the prior year's first quarter, reflecting reduced revenues from
 investment management services, offset by growing revenues from new sources of
 noninterest income.  During 2000, the residential mortgage production function
 was refocused to originate and generate increased fee income from the sale of
 mortgage loans to the secondary market.  During the first quarter 2001,
 noninterest income related to mortgage loan production grew by 154 percent to
 $449,000 compared with $177,000 earned in the first quarter of 2000.
     Core deposit growth continued to enhance fees by increasing the customer
 base and usage of check cards.  During the first quarter 2001, a total of
 $166,000 in interchange income was earned compared to $92,000 for the same
 period in 2000 and $122,000 in the fourth quarter 2000.
     Beginning in the fourth quarter of 2000, slower economic activity affected
 revenues from investment management services.  This trend continued in the
 first quarter of 2001 with brokerage commissions and fees totaling $400,000, a
 decline of $85,000 from the fourth quarter of 2000 and a decline of $494,000
 from the first quarter of 2000, as a result of consumers shifting from the
 purchase of investment products to more conservative deposit products.
     Net loan recoveries were $6,000 for the first quarter of 2001, compared to
 net charge-offs of $252,000 and $133,000 for all of 2000 and 1999,
 respectively.  Loan delinquencies, nonaccruals and the percentage of loans
 past due 90 days to average loans declined to 0.25 percent at March 31, 2001,
 compared to 0.45 percent one year earlier.  Nonperforming assets declined by
 $1,501,000 and totaled only $2,254,000 at quarter-end.  The consistent
 superior credit quality and low net charge-offs allowed the Company to
 eliminate the provision for loan losses for the quarter.  The prior year's
 provision for the quarter was $150,000.
     Seacoast with approximately $1.2 billion in assets is the largest
 independent commercial bank headquartered on Florida's Treasure Coast, one of
 the wealthiest areas in Florida and among the fastest growing in the nation.
 
     "Safe Harbor" Statement under the Private Securities Litigation Reform Act
 of 1995:  Statements in this press release regarding Seacoast's business which
 are not historical facts are "forward-looking statements" that involve risks
 and uncertainties.
     For a discussion of such risks and uncertainties, which could cause actual
 results to differ from those contained in the forward-looking statements, see
 "Special Cautionary Notice Regarding Forward-Looking Statements" in the
 company's most recent Annual Report on Form 10-K.
 
     FINANCIAL HIGHLIGHTS (Unaudited)
     SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
 
                                                        Three Months Ended
     (Dollars in thousands,                                  March 31
     except per share data)                             2001           2000
     Summary of Earnings
     Net income                                        $3,278         $3,107
     Net interest income(1)                            10,959         10,805
 
     Performance Ratios
     Return on average assets
      (2), (3)                                          1.17%          1.15%
     Return on average
      shareholders' equity
      (2), (3)                                          15.06          14.75
     Net interest margin
      (1), (2)                                           4.10           4.24
 
     Per Share Data
     Net income diluted                                 $0.69          $0.64
     Net income basic                                    0.69           0.64
     Cash dividends declared
      on Class A common                                  0.28           0.26
 
 
                                            March 30,             Increase/
                                      2001            2000       (Decrease)
     Credit Analysis
     Net charge-offs (recoveries)       $(6)             $17      (135.3)%
     Net charge-offs to average
      loans                            0.00%           0.01%       (100.0)
     Loan loss provision                $ --            $150       (100.0)
     Allowance to loans at
      end of period                    0.87%           0.87%           0.0
     Nonperforming assets            $ 2,254         $ 3,755        (40.0)
     Nonperforming assets to
      loans and other
      real estate owned
      at end of period                 0.27%           0.46%        (41.3)
 
     Selected Financial Data
     Total assets                 $1,170,008      $1,109,998           5.4
     Securities, at market           221,960         192,501          15.3
     Securities, at
      amortized cost                  17,723          20,597        (14.0)
     Net loans                       823,932         802,101           2.7
     Deposits                        982,290         949,382           3.5
     Shareholders' equity             88,446          78,422          12.8
     Book value per share              18.79           16.30          15.3
     Tangible book value per share     17.85           15.23          17.2
     Average shareholders' equity
      to average assets                7.76%           7.82%         (0.8)
 
     (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.
 
     CONSOLIDATED QUARTERLY FINANCIAL DATA    (Unaudited)
     SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
 
                                        Quarters
 
     (Dollars in
     thousands,
     except per      2001          2000         2000         2000      Last 12
     share data)     First       Fourth        Third       Second      Months
 
     Operating Ratios
     Return on
      average
      assets
      (2),(3)        1.17%        1.05%        1.07%        1.11%       1.10%
     Return on
      average
      shareholders'
      equity (2),(3) 15.06        13.40        13.80        14.45       14.15
     Net interest
      margin (1),(2)  4.10         3.93         3.90         4.08        3.99
     Average equity
      to average
      assets          7.76         7.81         7.78         7.65        7.75
 
     Credit Analysis
      Net
      charge-offs
      (recoveries)    $(6)          $40         $144          $51        $229
     Net
      charge-offs
      to average
      loans          0.00%        0.02%        0.07%        0.02%       0.03%
     Loan loss
      provision      $ ---         $150         $150         $150        $450
     Allowance
      to loans
      at end
      of period      0.87%        0.85%        0.85%        0.86%
     Nonperforming
      assets        $2,254       $2,445       $2,397       $2,836
     Nonperforming
      assets to
      loans and other
      real estate
      owned at end
      of period      0.27%        0.29%        0.29%        0.34%
     Nonaccrual
      loans and
      accruing
      loans 90 days
      or more past
      due to loans
      outstanding
      at end of
      period          0.25         0.26         0.27         0.33
 
     Per Share
      Common Stock
     Net income
      diluted        $0.69        $0.62        $0.62        $0.63       $2.56
     Net income
      basic           0.69         0.62         0.63         0.64        2.58
     Cash dividends
      declared on
      Class A
      common          0.28         0.28         0.26         0.26        1.08
     Book value
      per share      18.79        17.87        17.26        16.64
 
     (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 ratios which may be expected for the entire year.
     (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.
 
 SOURCE  Seacoast Banking Corporation of Florida