STUART, Fla., Jan. 25 /PRNewswire-FirstCall/ -- Seacoast Banking Corporation of Florida , a bank holding company whose principal subsidiary is Seacoast National Bank, reported net income totaling $23.9 million for 2006, compared to $20.8 million for the prior year. Diluted earnings per share (
While earnings for the entire year improved, results for the last two quarters were affected by a more challenging interest rate environment and deposit declines as a result of the slowdown in Florida housing activity [and intensified deposit competition] that emerged during the second half of 2006. Fourth quarter earnings totaled $0.30 DEPS compared to $0.34 DEPS a year ago and $0.31 DEPS for the third quarter 2006. Earnings for the quarter were impacted by a substantial increase in the provision for loan losses. During the quarter, the Company undertook a comprehensive review of all large credits, primarily construction loans, where the primary source of repayment is related to the sale of residential real estate. The review was undertaken to ensure that there was proper identification of risks associated with recent changes in market conditions impacting the Florida real estate market. While no immediate losses or impaired loans were identified, the change in market condition was partially responsible for an increased provision in the fourth quarter totaling $2,250,000 or $0.08 DEPS, compared to $330,000 or $0.01 DEPS a year ago and $475,000 or $0.02 DEPS in the third quarter 2006. The Company anticipates future provisioning to be more closely aligned with loan growth.
Revenues grew in the fourth quarter with fees from mortgage banking activities and marine finance fees improving, as expected from third quarter results. The Company also realized a gain related to the sale of an office building in which Seacoast National Bank was a 10% limited partner during the fourth quarter which totaled $1.1 million or $0.04 DEPS.
"Seacoast ends an eventful and challenging 2006 with a strong balance sheet and the people, processes, capital, and expanded markets to allow for stronger future performance," commented Dennis S. Hudson, III, Chairman and Chief Executive Officer of Seacoast.
Highlights for the year included the following: - Loan balances grew by 34.4 percent for the year and stood at $ 1.733 billion, including organic growth of 18.5 percent, and fourth quarter loan balances increased $77 million; - Net interest margin for the year increased by 18 basis points to 4.15 percent; - Earning assets increased $193 million to $2.18 billion for the year ended 2006; - Deposit mix remained favorable compared to peers with noninterest bearing deposits to total deposits at 20.7 percent at year-end; - Fees from wealth management services increased $725,000 or 14.1 percent; - Debit card and other electronic transaction fees increased $439,000, up 20.6 percent as a result of more customers and increased transactions; - As in the past, the Company has no significant wholesale borrowings; - The loan-to-deposit ratio at year-end was 92 percent, compared to 72 percent one year earlier; - Big Lake National Bank (acquired on April 1, 2006), and Century National Bank were successfully integrated and rebranded, along with our legacy bank charter, First National Bank & Trust Company of the Treasure Coast, into Seacoast National Bank; - Tangible equity to assets increased to 6.49 percent at year-end, compared to 5.57 percent a year ago; - Additional opportunities arose to take advantage of potential market disruptions with the recent sale by two of the Company's largest local Treasure Coast competitors to a large Ohio-based institution; - During the third quarter, the State of Florida and local governments concluded final negotiations that will locate three major California based biotech research firms in the Company's markets. These firms will use state and local funding to "seed" infrastructure development needed to attract other research firms and ancillary businesses to the State over the next few years; and - During the second half of the year, CVS Pharmacies opened a major regional distribution center in Indian River County, which will employ 350 workers by the end of 2007.
The net interest margin for the fourth quarter was 3.95 percent, representing a decline from the 4.04 percent achieved during the same period one year earlier and 4.22 percent in the third quarter of 2006. The decline in the net interest margin resulted from a continued shift in deposit mix from lower cost deposits to higher cost time deposits resulting from an inverted yield curve, increased deposit competition, and from seasonal increases in public fund customer balances that result in spreads of less than 1.0%.
The cost for interest bearing deposits increased to 3.25 percent from 2.95 percent in the third quarter 2006 and 2.05 percent in the fourth quarter a year ago. Average noninterest bearing demand deposits declined by $23.6 million and average lower cost savings, NOW and money market balances declined $34.6 million, compared to the third quarter 2006, while higher cost average time deposits increased $28.9 million.
Net interest income for the fourth quarter declined by $1.3 million or 5.6 percent from the third quarter, but was up $1.8 million or 8.9 percent when compared to fourth quarter 2005. Operating revenue totaled $27.5 million a decline of $1.1 million from the third quarter, but increased year-over-year by $2.4 million or 9.4 percent. The pressure on the net interest margin, and net interest income, are likely to carryover into 2007, although more modestly than in the second half of 2006, provided loan growth targets are achieved. The Company is reviewing balance sheet strategies to lessen the margin impact of a continued inverted yield curve.
Average loans outstanding increased 35.9 percent compared to the same quarter one year earlier. This growth resulted from strong organic growth in the Company's markets as well as an acquisition completed in the second quarter of 2006. The impact of a slower housing market is impacting the Company's loan pipelines and it is believed that slower growth will result for 2007. The Company's expansion into Palm Beach and Brevard counties and its acquisitions over the past two years has allowed for greater loan opportunities and the Company expects loan growth to range in high single digits in 2007. The recent acquisition of the Company's two largest community bank competitors by a large Cleveland, Ohio based bank and the integration and rebranding planned for early 2007 could improve the Company's prospects for loan and deposit growth in 2007.
Noninterest income, excluding securities gains (losses) and the nonrecurring gain on the sale of a partnership interest of $1.1 million, increased 12.7 percent when compared to the prior year, reflecting increased revenues from debit card interchange fees, merchant income, and Trust and investment management services, as well as increased fees from service charges on deposit accounts as a result of the acquisition of Big Lake National Bank. During the past two years, noninterest income related to mortgage loan production has declined due to lower volumes and more production being retained in the loan portfolio. Total outstanding residential loan balances have increased 18 percent over the past year in a higher rate environment. The Company expects that fee income from mortgage banking activities will continue to be challenged due to a slower housing market. For the total year 2006, commissions and fees from Trust and investment management services increased 14.1 percent compared to 2005. Over the long term, the Company expects fees from wealth management services to grow at a rate of approximately 10 percent per year.
Noninterest expenses declined $714,000 or 3.8 percent from the third quarter, as a result of lower incentive expense based on the decline in the rate of earnings growth and the Company's overall performance compared to expectations. Noninterest expenses for the quarter included added spending related to rebranding the subsidiary bank and costs associated with attracting customers of the acquired local competitors, totaling approximately $314,000 or $0.01 DEPS. The Company is completing a review of its processes, operations and costs, and based on this review, the Company has targeted quarterly overhead to remain relatively flat in 2007 when compared to 2006, after adjusting for the acquisition completed in the second quarter of 2006.
The Company has maintained strong and consistent credit quality and low net charge-offs over the long term and consistently lower net charge-offs than its peers. Remarkably, net loan recoveries of $106,000 were recorded for 2006, compared to net charge-offs of $134,000 for 2005. Nonaccrual loans and loans past due 90 days to average loans totaled 0.72 percent at year-end 2006, up from 0.03 percent a year earlier. Most of this increase was related to a loan placed on nonaccrual during the third quarter of 2006 which has a current balance of approximately $8.0 million. This loan is secured with both new and used boat inventory which is in the process of being liquidated. This relationship dates back a number of years and represents the only retail floor plan loan in the Company's loan portfolio. The market value of the collateral is believed to be sufficient to cover the loan balance, provided the liquidation occurs on a timely basis and in an orderly fashion. The borrower recently filed for bankruptcy protection and the Company immediately increased the specific loan loss allowance established last quarter from $280,000 to $1.1 million.
Seacoast, with approximately $2.4 billion of assets, is one of the largest independent commercial banking organizations in Florida. Seacoast has 43 offices in South and Central Florida and is headquartered on Florida's Treasure Coast, which is one of the wealthiest and fastest growing 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, 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 and regulatory changes; the risks of changes in interest rates on the level and composition of deposits, loan demand, 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.
* The Company believes that cash operating earnings, excluding the impacts of noncash interest rate swap fair value changes, noncash amortization expense, the merger costs related to the Big Lake acquisition, gain on sale of a partnership interest, and costs associated with the name change for the Company's primary banking subsidiary, is a better measurement of the Company's trend in operating earnings growth. Net cash payments and receipts from the interest rate swap have been immaterial for the periods presented. FINANCIAL HIGHLIGHTS (Unaudited) SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES Three Months Ended Twelve Months Ended (Dollars in thousands, December 31, December 31, except per share data) 2006 2005 2006 2005 Summary of Earnings Net income (GAAP) $5,685 $5,833 $23,854 $20,759 Merger and other charges - - 576 - Earnings, excluding merger and other charges 5,685 5,833 24,430 20,759 Amortization of core deposit premiums 205 77 696 346 Gain on sale of partnership interest (746) - (746) - Net interest rate swap (profits) losses - - - 173 Cash operating earnings* $5,145 $5,910 $24,380 $21,278 Net interest income(1) $21,846 $20,062 $89,294 $72,297 Performance Ratios Return on average assets (2),(3) Using GAAP earnings 0.95 % 1.10 % 1.03 % 1.07 % Using cash operating earnings* on average tangible assets 0.88 1.13 1.08 1.11 Return on average shareholders' equity (2),(3) Using GAAP earnings 10.57 14.96 12.06 14.95 Using cash operating earnings* on average tangible equity 12.99 19.48 16.64 18.45 Net interest margin (1),(2) 3.95 4.04 4.15 3.97 Per Share Data Net income diluted (GAAP) $0.30 $0.34 $1.28 $1.24 Merger and other charges - - 0.03 - Earnings, excluding merger and other charges 0.30 0.34 1.31 1.24 Amortization of core deposit premium 0.01 - 0.03 0.02 Gain on sale of partnership interest (0.04) - (0.04) - Net interest rate swap (profits) losses - - - 0.01 Cash operating earnings* diluted $0.27 $0.34 $1.30 $1.27 Net income basic (GAAP) $0.30 $0.35 $1.30 $1.27 Cash dividends declared 0.16 0.15 0.61 0.58 (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 calculations 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. * The Company believes that cash operating earnings excluding the impacts of noncash interest rate swap fair value changes, noncash amortization expense and the merger costs related to the Big Lake acquisition which was completed on April 3, 2006 and costs associated with the name change announced for the Company's primary banking subsidiary is a better measurement of the Company's trend in operating earnings growth. Net cash payments and receipts from the interest rate swap have been immaterial for the periods presented. FINANCIAL HIGHLIGHTS (cont'd) (Unaudited) SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES (Dollars in thousands, December 31, Increase/ except per share data) 2006 2005 (Decrease) Credit Analysis Net charge-offs (recoveries) year-to-date $(106) $134 (179.1)% Net charge-offs (recoveries) to average loans (0.01) % 0.01 % (200.0) Loan loss provision year-to-date $3,285 $1,317 149.4 Allowance to loans at end of period 0.86 % 0.70 % 22.9 Nonperforming assets $12,465 $372 3,250.8 Nonperforming assets to loans and other real estate owned at end of period 0.72 % 0.03 % 2,300.0 Selected Financial Data Total assets $2,389,435 $2,132,174 12.1 Securities - Held for sale (at fair value) 313,983 392,952 (20.1) Securities - Held for investment (at amortized cost ) 129,958 150,072 (13.4) Net loans 1,718,196 1,280,989 34.1 Deposits 1,891,018 1,784,219 6.0 Shareholders' equity 212,425 152,720 39.1 Book value per share 11.20 8.94 25.3 Tangible book value per share 8.18 6.95 17.7 Average shareholders' equity to average assets 8.55 % 7.17 % 19.2 Average Balances (Year-to-Date) Total Assets $2,314,864 $1,937,361 19.5 Less: Intangible assets 51,335 23,573 117.8 Total average tangible assets $2,263,529 $1,913,788 18.3 Total equity $197,866 $138,875 42.5 Less: Intangible assets 51,335 23,573 117.8 Total average tangible equity $146,531 $115,302 27.1 CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES Three Months Ended Twelve Months Ended December 31, December 31, (Dollars in thousands, except per share data) 2006 2005 2006 2005 Interest on securities: Taxable $5,050 $5,482 $21,933 $21,752 Nontaxable 92 15 298 66 Interest and fees on loans 31,671 21,564 114,388 72,958 Interest on federal funds sold and other investments 334 1,531 3,208 3,624 Total Interest Income 37,147 28,592 139,827 98,400 Interest on deposits 5,642 2,998 19,184 9,095 Interest on time certificates 6,700 3,863 21,886 12,225 Interest on borrowed money 3,024 1,694 9,717 4,895 Total Interest Expense 15,366 8,555 50,787 26,215 Net Interest Income 21,781 20,037 89,040 72,185 Provision for loan losses 2,250 330 3,285 1,317 Net Interest Income After Provision for Loan Losses 19,531 19,707 85,755 70,868 Noninterest income: Service charges on deposit accounts 1,875 1,327 6,784 5,022 Trust income 654 605 2,858 2,573 Mortgage banking fees 337 290 1,131 1,810 Brokerage commissions and fees 598 627 3,002 2,562 Marine finance fees 570 806 2,709 3,068 Debit card income 565 416 2,149 1,714 Other deposit based EFT fees 114 94 421 417 Merchant income 624 530 2,545 2,230 Interest rate swap losses - - - (267) Other income 382 394 1,514 1,388 5,719 5,089 23,113 20,517 Gain on sale of partnership interest 1,147 - 1,147 - Securities gains (losses), net (73) 50 (157) 128 Total Noninterest Income 6,793 5,139 24,103 20,645 Noninterest expenses: Salaries and wages 6,479 6,730 29,146 23,783 Employee benefits 1,699 1,575 7,322 6,313 Outsourced data processing costs 1,768 1,609 7,443 6,477 Occupancy expense 1,893 1,388 7,435 5,126 Furniture and equipment expense 689 525 2,523 2,121 Marketing expense 1,564 689 4,359 3,194 Legal and professional fees 863 765 2,792 2,595 FDIC assessments 121 56 325 225 Amortization of intangibles 315 119 1,070 533 Other expense 2,782 2,282 10,630 8,733 Total Noninterest Expenses 18,173 15,738 73,045 59,100 Income Before Income Taxes 8,151 9,108 36,813 32,413 Provision for income taxes 2,466 3,275 12,959 11,654 Net Income $5,685 $5,833 $23,854 $20,759 Per share common stock: Net income diluted $0.30 $0.34 $1.28 $1.24 Net income basic 0.30 0.35 1.30 1.27 Cash dividends declared 0.16 0.15 0.61 0.58 Average diluted shares outstanding 19,129,452 17,287,715 18,671,752 16,749,386 Average basic shares outstanding 18,787,297 16,883,719 18,305,258 16,361,196 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES December 31, December 31, (Dollars in thousands) 2006 2005 Assets Cash and due from banks $89,803 $67,373 Federal funds sold and other investments 2,412 153,120 Total Cash and Cash Equivalents 92,215 220,493 Securities: Held for sale (at fair value) 313,983 392,952 Held for investment (at amortized cost) 129,958 150,072 Total Securities $443,941 $543,024 Loans available for sale 5,888 2,440 Loans, net of unearned income 1,733,111 1,289,995 Less: Allowance for loan losses (14,915) (9,006) Net Loans 1,718,196 1,280,989 Bank premises and equipment 37,070 22,218 Other real estate owned - - Goodwill and other intangible assets 57,299 33,901 Other assets 34,826 29,109 $2,389,435 $2,132,174 Liabilities and Shareholders' Equity Liabilities Deposits Demand deposits (noninterest bearing) $391,805 $472,996 Savings deposits 929,444 882,031 Other time deposits 325,251 256,484 Time certificates of $100,000 or more 244,518 172,708 Total Deposits 1,891,018 1,784,219 Federal funds purchased and securities sold under agreements to repurchase, maturing within 30 days 206,476 96,786 Borrowed funds 26,522 45,485 Subordinated debt 41,238 41,238 Other liabilities 11,756 11,726 2,177,010 1,979,454 Shareholders' Equity Preferred stock - - Common stock 1,899 1,710 Additional paid in capital 91,561 46,347 Retained earnings 124,811 112,182 Restricted stock awards (3,181) (3,447) Treasury stock (310) (218) 214,780 156,574 Accumulated other comprehensive loss, net (2,355) (3,854) Total Shareholders' Equity 212,425 152,720 $2,389,435 $2,132,174 Common Shares Outstanding 18,974,295 17,084,315 Note: The balance sheet at December 31, 2005 has been derived from the audited financial statements at that date. CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited) SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES Quarters Quarters 2006 (Dollars in thousands, except per share data) Fourth Third Second Net income (GAAP) $5,685 $5,869 $6,434 Merger and other charges - - 576 Earnings, excluding merger and other charges 5,685 5,869 7,010 Amortization of core deposit premium 205 205 209 Gain on sale of partnership interest (746) - - Cash operating earnings* $5,145 $6,074 $7,219 Operating Ratios Return on average assets (2),(3) Using GAAP earnings 0.95 % 0.99 % 1.07 Using cash operating earnings* on average tangible assets 0.88 1.05 1.23 Return on average shareholders' equity (2),(3) Using GAAP earnings 10.57 11.03 12.43 Using cash operating earnings* on average tangible equity 12.99 15.64 19.39 Net interest margin (1),(2) 3.95 4.22 4.29 Average equity to average assets 8.99 8.98 8.58 Credit Analysis Net charge-offs (recoveries) $27 $23 $(76) Net charge-offs (recoveries) to average loans 0.01 % 0.01 % (0.02) Loan loss provision $2,250 $475 $280 Allowance to loans at end of period 0.86 % 0.77 % 0.76 Nonperforming assets $12,465 $10,437 $588 Nonperforming assets to loans and other real estate owned at end of period 0.72 % 0.63 % 0.04 Nonaccrual loans and accruing loans 90 days or more past due to loans outstanding at end of period 0.72 0.71 0.03 Per Share Common Stock Net income diluted (GAAP) $0.30 $0.31 $0.34 Merger and other charges - - 0.03 Earnings, excluding merger and other charges 0.30 0.31 0.37 Amortization of core deposit premium 0.01 0.01 0.01 Gain on sale of partnership interest (0.04) - - Cash operating earnings* diluted $0.27 $0.32 $0.38 Net income basic (GAAP) $0.30 $0.31 $0.34 Cash dividends declared 0.16 0.15 0.15 Book value per share 11.20 10.99 10.70 Average Balances Total assets $2,372,784 $2,350,862 $2,419,683 Less: Intangible assets 56,230 56,945 58,252 Total average tangible assets $2,316,554 $2,293,917 $2,361,431 Total equity $213,354 $211,024 $207,555 Less: Intangible assets 56,230 56,945 58,252 Total average tangible equity $157,124 $154,079 $149,303 CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited) SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES (Dollars in thousands, 2006 Last 12 except per share data) First Months Net income (GAAP) $5,866 $23,854 Merger and other charges - 576 Earnings, excluding merger and other charges 5,866 24,430 Amortization of core deposit premium 77 696 Gain on sale of partnership interest - (746) Cash operating earnings* $5,943 $24,380 Operating Ratios Return on average assets (2),(3) Using GAAP earnings 1.13 % 1.03 Using cash operating earnings* on average tangible assets 1.16 1.08 Return on average shareholders' equity (2),(3) Using GAAP earnings 14.98 12.06 Using cash operating earnings* on average tangible equity 19.25 16.64 Net interest margin (1),(2) 4.16 4.15 Average equity to average assets 7.52 8.55 Credit Analysis Net charge-offs (recoveries) $(80) $(106) Net charge-offs (recoveries) to average loans (0.02)% (0.01) Loan loss provision $280 $3,285 Allowance to loans at end of period 0.70 % Nonperforming assets $240 Nonperforming assets to loans and other real estate owned at end of period 0.02 % Nonaccrual loans and accruing loans 90 days or more past due to loans outstanding at end of period 0.02 Per Share Common Stock Net income diluted (GAAP) $0.34 $1.28 Merger and other charges - 0.03 Earnings, excluding merger and other charges 0.34 1.31 Amortization of core deposit premium - 0.03 Gain on sale of partnership interest - (0.04) Cash operating earnings* diluted $0.34 $1.30 Net income basic (GAAP) $0.35 $1.30 Cash dividends declared 0.15 0.61 Book value per share 9.09 Average Balances Total assets $2,112,876 Less: Intangible assets 33,604 Total average tangible assets $2,079,272 Total equity $158,787 Less: Intangible assets 33,604 Total average tangible equity $125,183 (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 calculations 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. * The Company believes that cash operating earnings excluding the impacts of noncash interest rate swap fair value changes, noncash amortization expense and the merger costs related to the Big Lake acquisition which was completed on April 3, 2006 and costs associated with the name change announced for the Company's primary banking subsidiary is a better measurement of the Company's trend in operating earnings growth. Net cash payments and receipts from the interest rate swap have been immaterial for the periods presented. CONSOLIDATED QUARTERLY FINANCIAL DATA SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES (Dollars in thousands) December 31, December 31, SECURITIES 2006 2005 U.S. Treasury and U.S. Government Agencies $94,676 $71,189 Mortgage-backed 214,661 319,906 Obligations of states and political subdivisions 2,049 - Other securities 2,597 1,857 Securities Held for Sale 313,983 392,952 U.S. Treasury and U.S. Government Agencies - 5,000 Mortgage-backed 123,587 143,877 Obligations of states and political subdivisions 6,371 1,195 Securities Held for Investment 129,958 150,072 Total Securities $443,941 $543,024 December 31, December 31, LOANS 2006 2005 Construction and land development $571,133 $427,216 Real estate mortgage 949,824 680,877 Installment loans to individuals 83,428 82,942 Commercial and financial 128,101 98,653 Other loans 625 307 Total Loans $1,733,111 $1,289,995 AVERAGE BALANCES, YIELDS AND RATES (1) (Unaudited) SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES 2006 2005 Fourth Quarter Third Quarter Average Yield/ Average Yield/ (Dollars in thousands) Balance Rate Balance Rate Assets Earning assets: Securities: Taxable $462,628 4.37 % $493,810 4.35 % Nontaxable 8,409 6.47 8,654 6.61 Total Securities 471,037 4.40 502,464 4.39 Federal funds sold and other investments 24,872 5.33 38,832 5.32 Loans, net 1,698,552 7.40 1,634,263 7.47 Total Earning Assets 2,194,461 6.73 2,175,559 6.71 Allowance for loan losses (12,842) (12,363) Cash and due from banks 76,523 74,680 Premises and equipment 36,731 37,162 Other assets 77,911 75,824 $2,372,784 $2,350,862 Liabilities and Shareholders' Equity Interest-bearing liabilities: NOW $198,610 2.10 % $208,948 1.72 % Savings deposits 136,410 0.71 149,323 0.69 Money market accounts 591,740 2.92 603,133 2.76 Time deposits 581,520 4.57 552,589 4.23 Federal funds purchased and other short term borrowings 154,065 4.68 107,401 4.42 Other borrowings 67,798 7.06 67,572 7.14 Total Interest-Bearing Liabilities 1,730,143 3.52 1,688,966 3.21 Demand deposits (noninterest- bearing) 415,791 439,379 Other liabilities 13,496 11,493 Total Liabilities 2,159,430 2,139,838 Shareholders' equity 213,354 211,024 $2,372,784 $2,350,862 Interest expense as a % of earning assets 2.78 % 2.49 % Net interest income as a % of earning assets 3.95 4.22 AVERAGE BALANCES, YIELDS AND RATES(1) (Unaudited) SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES 2005 Fourth Quarter Average Yield/ (Dollars in thousands) Balance Rate Assets Earning assets: Securities: Taxable $567,382 3.86 % Nontaxable 1,196 7.69 Total Securities 568,578 3.87 Federal funds sold and other investments 154,144 3.94 Loans, net 1,249,461 6.85 Total Earning Assets 1,972,183 5.76 Allowance for loan losses (8,800) Cash and due from banks 70,150 Premises and equipment 21,674 Other assets 48,771 $2,103,978 Liabilities and Shareholders' Equity Interest-bearing liabilities: NOW $137,457 0.89 % Savings deposits 152,807 0.51 Money market accounts 589,275 1.68 Time deposits 449,657 3.41 Federal funds purchased and other short term borrowings 94,719 3.25 Other borrowings 72,504 5.02 Total Interest-Bearing Liabilities 1,496,419 2.27 Demand deposits (noninterest-bearing) 442,534 Other liabilities 10,344 Total Liabilities 1,949,297 Shareholders' equity 154,681 $2,103,978 Interest expense as a % of earning assets 1.72 % Net interest income as a % of earning assets 4.04 (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.
Seacoast Banking Corporation of Florida
