STUART, Fla., July 24 FL-SeacoastBankingERN
STUART, Fla., July 24 /PRNewswire-FirstCall/ -- Seacoast Banking
Corporation of Florida (Nasdaq: SBCF) (the "Company") today reported that the
Company's net loss for the quarter ended June 30, 2008 totaled $21.3 million,
or $1.12 per share, compared with net income of $4,808,000 or $0.25 per
diluted share one year earlier. The total loss for the first six months of
2008 totals $19.6 million or $1.03 per share, compared with net income of
$7,577,000 or $0.39 in the first six months of 2007.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050916/SEACOASTLOGO )
The Company's capital position remains strong with a total risk-based
capital ratio of approximately 11.52 percent at June 30, 2008. This ratio is
expected to increase due to an anticipated decline in risk-based asset levels
in 2008, as a result of previously discussed declines in anticipated new loan
production.
Earnings for the quarter were impacted by higher credit costs as the
Company substantially reduced the carrying value of certain residential
development and land loans and significantly increased its reserve for loan
losses. In light of current conditions, asset quality remains strong in the
Company's other loan portfolios. The significant actions taken at quarter end
will strengthen the Company's ability to reduce the level of non performing
assets in the future. Earnings are expected to return to profitability in the
coming quarter and for the second half of the year.
In recent years, the Company raised an aggregate of $52 million in new
capital through three offerings of trust preferred securities, including one
which was completed in mid 2007. This new capital was raised at favorable
rates and the proceeds were contributed to the Company's banking subsidiary,
Seacoast National Bank, which continues to maintain strong capital levels.
Although there is presently no plan to raise additional capital, the Company
filed a shelf registration statement during this quarter relating to a variety
of debt and equity instruments to provide future flexibility in raising
capital in order to take advantage of opportunities that become available or
should the need arise.
Liquidity remains strong with a total of $480 million in funding available
from a variety of sources at quarter end. The Company does not rely on
wholesale funding and maintains a diverse retail deposit base in its markets.
The Company's deposit base comprises 90% of total funding sources for the
Company.
"While there was a significant improvement during the quarter in the
volume of residential real estate transactions in our markets, which is
encouraging, much of the improvement came from distress sales which continue
to weigh on valuations. We believe these recent transactions may have
negatively impacted values associated with land parcels that secure many of
our non-performing assets which are now moving closer to liquidation. As a
result we substantially reduced the carrying value of a number of larger
residential land exposures including several that were added as nonperforming
assets at quarter-end. Furthermore, we significantly increased our reserve
for loan losses as a result of the weaker market conditions," said Dennis S.
Hudson, III, Chairman and Chief Executive Officer. "We were among the first
to recognize the housing deterioration in Florida that began in mid 2006 with
an initial reserve build that occurred in the final quarter of that year.
Since that time, we have committed significant resources to aggressively
manage and quantify our exposure, which has provided us with a realistic and
timely understanding of evolving market conditions. We now believe we are
entering the home stretch, and we will hopefully be among the first banks to
show improvement."
The Company has no exposure to loans or investments with sub-prime
collateral, nor has it ever originated or purchased Alt A loans or option ARM
loans which have recently been a cause for concern in the industry. The
Company's residential and consumer loan portfolios should continue to perform
well in light of current market conditions.
The Company anticipates that it will pay a de minimis cash dividend to
shareholders in the third quarter which will further strengthen its capital
position during this period of economic uncertainty. Going forward, the cash
dividend will not be increased until earnings improve. Should credit costs
begin to moderate as currently anticipated, and should financial share price
valuations remain depressed, the Company may consider share repurchases at a
later date as an alternative to increasing the cash dividend and as a way to
increase shareholder value.
Excluding the impact of credit costs, core earnings (net income before the
provision for loan losses and after taxes) for the second quarter of 2008
totaled $4.6 million, or approximately $0.24 per share, compared with $5.1
million or $0.27 per share for the first quarter of 2008. The Company's net
interest margin remained stable at 3.69 percent, compared with 3.74 percent in
the first quarter of 2008.
"Our core earnings (before credit costs) remained stable despite very
challenging market conditions. These results reflect our relationship-based
growth strategy that has for many years produced what has become one of the
most valuable core deposit franchises in the state of Florida. This strategy
continues to serve us well in the current environment, as it has allowed us to
avoid the impacts of costly wholesale funding and maintain a strong liquidity
position," said Mr. Hudson. "The fundamentals of our business model remain
very much in place and should continue to produce solid underlying earnings
support as we proceed through the current credit cycle. We will continue to
evaluate our cost structure in light of market conditions in order to maintain
stable core earnings".
Other results for second quarter 2008:
-- Capital ratios remained strong with Tier 1 capital of 10.27 percent,
total risk based capital at 11.52 percent, and average equity to average
assets at 9.17 percent.
-- Loan loss reserve increased to a strong 1.75 percent from 1.22 percent
the prior quarter and 0.84 percent in the prior year.
-- Net interest income remained stable at $20.2 million for the second
quarter, and the net interest margin was nearly unchanged at 3.69 percent.
-- Net noninterest expense (noninterest expense minus noninterest income)
grew by $876,000 linked quarter, primarily as a result of one-time benefits
recorded in the first quarter 2008 related to redemption of VISA, Inc. shares
and an increased FDIC premium expense in the second quarter.
-- Retail interest bearing savings and transaction deposits increased
$22.3 million, up 16.0 percent annualized from the first quarter 2008.
-- Average deposits on the Treasure Coast increased 5.8 percent, while
total average deposits grew over $50 million or 2.7 percent compared to second
quarter a year ago.
-- Average cost of interest bearing liabilities totaled 2.68 percent, down
58 basis points from the first quarter of 2008.
Nonperforming assets increased by $15 million compared to the end of the
first quarter of 2008. The majority of the increase in nonperforming assets
is land and acquisition and development loans related to residential real
estate. The Company does not anticipate that the levels of nonperforming
assets will increase substantially in the coming quarter. The carrying value
of nonperforming loans reflects management's evaluation of the current
conditions affecting real estate values and market conditions at the end of
the second quarter 2008.
The Company increased loan loss reserves as a result of the continued
weakness in loans related to residential development and, during the second
quarter of 2008, provided $8.7 million in excess of net charge-offs to the
allowance for loan losses, which now totals 1.75 percent of total loans
outstanding. Net loan charge-offs totaled $33.5 million in the second quarter
and $37.9 million year-to-date.
The net interest margin for the second quarter of 2008 of 3.69 percent was
5 basis points lower compared to the first quarter of 2008, and down 40 basis
points year-over-year. Net interest income declined by approximately
$300,000, totaling $20.2 million for the second quarter when compared to the
first quarter of 2008, and was lower by $1.2 million compared to the second
quarter of 2007. The stable net interest margin was achieved in spite of the
negative impacts from nonperforming assets, and benefited from lower cost of
interest bearing liabilities and improving deposit mix. The margin was also
affected by lower loan demand, with average total loans for the second quarter
2008 down $43.6 million linked-quarter and $60.0 million versus fourth quarter
2007.
Noninterest expenses were up $556,000 in the second quarter of 2008
compared to the first quarter as a result of higher FDIC insurance premiums,
as the Company's credit for prior premiums has all been fully applied to this
year's assessments. Also in the first quarter, the Company reversed an
accrual for VISA litigation settlement claims resulting in lower expenses.
Without the impact of these items, total overhead expenditures were nearly
unchanged quarter-to-quarter. Salaries wages and benefit expenses were lower
by $818,000 on reduced headcount and lower accruals for incentive payments due
to lower revenues generated from wealth management and weak commercial lending
production. These savings were offset by increased marketing costs to support
the Company's retail core deposit growth activities and a full quarter's cost
for new branches opened during the first half of the year. Year-to-date
expenses are $680,000, or 1.8 percent lower than the same period in 2007.
Management believes that total noninterest expenses for 2008 will not vary
significantly from the prior year.
Consistent with the first quarter's results for 2008, loan growth in the
second quarter was much slower than in the prior year with total loans
outstanding decreasing year-over-year by $4.3 million, or 0.2 percent,
compared with an increase of $165.3 million, or 9.5 percent for the year ended
December 31, 2007. Loan growth is expected to continue to be weak for the
remainder of the year and the first half of 2009. Total deposits
year-over-year increased by $23.2 million, or 1.2 percent.
Average deposits for the second quarter of 2008 increased $9.2 million
linked-quarter, compared to a $12.3 million increase in the first quarter of
2008. Deposit growth in the second quarter, which historically experiences a
seasonal decline, was stronger than expected due to retail deposit growth.
The Company instituted a focused retail deposit growth strategy earlier in the
year, which has improved the promoted retail customer deposit account growth
with these deposits increasing by $75 million in the second quarter 2008.
Since the promotion began in February 2008, the Company believes it has
increased its market share during this period of off-season slow growth. In
addition, the Company's customer base includes local municipalities and
governmental agencies that maintain significantly higher balances from
November through April each year. This factor caused ending deposit balances
on a linked-quarter basis to decline by $55.3 million.
Total noninterest income, excluding securities gains and losses, was lower
in the second quarter compared to the first quarter, primarily as the result
of income received from the redemption of Visa, Inc shares totaling $305,000.
Year-over-year noninterest income for the six months ended June 30, 2008,
excluding securities gains and losses, decreased $928,000, with $662,000 of
this difference caused by lower securities brokerage revenue and the remainder
due to lower consumer fees from merchant income and mortgage banking fees, all
as a result of the real estate driven economic recession. Marine finance fees
improved in both the second quarter and on a year-to-date basis. While
overall transaction levels are lower, the Company has gained market share as a
result of tighter credit limiting the ability of some competitors to handle
transactions. Mortgage banking fees were nearly unchanged from the first
quarter, in spite of the uncertainties of the mortgage markets and tighter
credit standards. While recent conditions have improved modestly, market
conditions remain unfavorable for increased revenue generation this year as a
result of lower transaction volume.
The Company will host a conference call on Friday, July 25, 2008 at 10:00
a.m. (Eastern Time) to discuss its earnings results and business trends.
Investors may call in (toll-free) by dialing (800) 640-9765 (access code:
22174773; leader: Dennis S. Hudson). Charts will be used during the
conference call and may be accessed at the Company'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 July 25 by dialing (877) 213-9653 (domestic), using the passcode
22174773.
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 Relations. Beginning the afternoon of July 25,
2008, 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 Banking Corporation of Florida has approximately $2.3 billion in
assets. It is one of the largest independent commercial banking organizations
in Florida, headquartered on Florida's Treasure Coast, 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.
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, 2007 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 Six Months Ended
(Dollars in thousands, June 30, June 30,
except per share data)2008 20072008 2007
Summary of Earnings
Net income (loss)$(21,316) $4,808$(19,553) $7,577
Net income (loss), excluding
securities restructuring
losses (5) (21,316)4,808 (19,553) 10,874
Net interest income (1)20,23421,468 40,79642,900
Performance Ratios
Return on average assets-
GAAP basis (2), (3)(3.65) % 0.85 % (1.67) % 0.66 %
Return on average tangible
assets (2), (3), (4), (5) (3.70) 0.91 (1.68) 1.00
Return on average
shareholders' equity-GAAP
basis (2), (3)(39.79) 8.81 (18.22) 7.00
Return on average tangible
shareholders' equity (2),
(3), (4), (5) (53.27)12.43 (24.13)14.12
Net interest margin (1),
(2) 3.69 4.093.71 4.01
Per Share Data
Net income (loss) diluted-
GAAP basis$(1.12)$0.25 $(1.03)$0.39
Net income (loss) basic-GAAP
basis (1.12) 0.25 (1.03) 0.40
Net income (loss) diluted-
excluding securities
restructuring losses (5) (1.12) 0.25 (1.03) 0.57
Net income (loss) basic-
excluding securities
restructuring losses (5) (1.12) 0.25 (1.03) 0.57
Cash dividends declared 0.16 0.160.32 0.32
June 30, Increase/
2008 2007 (Decrease)
Credit Analysis
Net charge-offs year-to-date $37,942 $26814,057.5 %
Net charge-offs to average loans 4.07 %0.03 % 13,466.7
Loan loss provision year-to-date $47,737 $557 8,470.4
Allowance to loans at end of
period 1.75 %0.84 % 108.3
Nonperforming assets $80,771 $15,495 421.3
Nonperforming assets to loans and
other real estate owned at end of
period 4.45 %0.85 % 423.5
Selected Financial Data
Total assets $2,296,999$2,260,173 1.6
Securities - Trading (at fair
value) 026,690 (100.0)
Securities - Available for sale
(at fair value) 255,798 183,13239.7
Securities - Held for investment
(at amortized cost) 29,91333,863 (11.7)
Net loans 1,777,090 1,797,883(1.2)
Deposits1,890,401 1,867,191 1.2
Shareholders' equity 190,182 217,071 (12.4)
Book value per share 9.90 11.32 (12.5)
Tangible book value per share6.97 8.35 (16.5)
Average shareholders' equity
to average assets 9.17 %9.38 % (2.2)
Average Balances (Year-to-Date)
Total assets $2,353,639$2,328,427 1.1
Less: Intangible assets 56,13357,268(2.0)
Total average tangible assets $2,297,506$2,271,159 1.2
Total equity $215,865 $218,430(1.2)
Less: Intangible assets 56,13357,268(2.0)
Total average tangible equity$159,732 $161,162(0.9)
(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) Excludes securities restructuring losses of $5,118 (or $3,297, net of
taxes) recorded in first quarter 2007.
n/m = not meaningful
CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Three Months Ended Six Months Ended
June 30,June 30,
(Dollars in
thousands, except
per share data) 2008200720082007
Interest on
securities:
Taxable $3,531 $3,566 $7,117 $8,305
Nontaxable90 93 180 186
Interest and fees
on loans 28,197 32,930 59,379 65,480
Interest on
federal funds
sold and other
investments 455 662 752 913
Total Interest
Income 32,273 37,251 67,428 74,884
Interest on
deposits 4,278 5,937 10,083 11,499
Interest on time
certificates 6,356 7,511 13,129 14,279
Interest on
borrowed money 1,477 2,399 3,569 6,334
Total Interest
Expense12,111 15,847 26,781 32,112
Net Interest
Income 20,162 21,404 40,647 42,772
Provision for loan
losses42,237 1,107 47,737 557
Net Interest
Income (Loss)
After Provision
for Loan Losses (22,075) 20,297 (7,090) 42,215
Noninterest
income:
Service
charges on
deposit
accounts 1,812 1,928 3,662 3,661
Trust income 591 663 1,173 1,290
Mortgage
banking fees350 416 718 871
Brokerage
commissions
and fees515 989 1,198 1,743
Marine
finance fees930 856 1,615 1,582
Debit card
income 648 597 1,259 1,165
Other deposit
based EFT
fees 86 116 194 247
Merchant
income 667 721 1,402 1,477
Other243 430 783 896
5,842 6,716 12,004 12,932
Securities
restructuring
losses 0 0 0 (5,118)
Securities
gains
(losses),
net355 26 355 24
Total
Noninterest
Income 6,197 6,742 12,359 7,838
Noninterest
expenses:
Salaries and
wages 7,428 8,453 15,363 16,349
Employee
benefits 1,714 2,032 3,739 3,719
Outsourced
data
processing
costs 1,983 1,956 3,997 3,901
Telephone /
data lines 489 494 927 977
Occupancy 2,081 1,919 3,924 3,793
Furniture and
equipment 747 699 1,435 1,351
Marketing871 793 1,469 1,493
Legal and
professional
fees932 843 1,858 1,675
FDIC
assessments 392 56 451 114
Amortization
of
intangibles 314 314 629 629
Other 2,289 2,342 4,132 4,603
Total
Noninterest
Expenses19,240 19,901 37,924 38,604
Income
(Loss)
Before
Income
Taxes (35,118) 7,138 (32,655) 11,449
Provision
(benefit) for
income taxes (13,802) 2,330 (13,102) 3,872
Net Income
(Loss)$(21,316) $4,808$(19,553) $7,577
Per share common
stock:
Net income
(loss)
diluted $(1.12) $0.25 $(1.03) $0.39
Net income
(loss) basic (1.12) 0.25 (1.03) 0.40
Cash
dividends
declared 0.160.160.320.32
Average diluted
shares
outstanding 18,986,163 19,221,438 18,957,269 19,188,343
Average basic
shares
outstanding 18,986,163 18,955,848 18,957,269 18,957,989
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
June 30, December 31, June 30,
(Dollars in thousands) 200820072007
Assets
Cash and due from banks$45,495 $50,490 $66,067
Federal funds sold and other
investments24,792 47,985 15,190
Total Cash and Cash
Equivalents 70,287 98,475 81,257
Securities:
Trading (at fair value) 0 13,913 26,690
Available for sale (at fair
value) 255,798 254,916 183,132
Held for investment (at
amortized cost) 29,913 31,900 33,863
Total Securities 285,711 300,729 243,685
Loans available for sale 3,643 3,660 4,204
Loans, net of unearned income1,808,787 1,898,389 1,813,087
Less: Allowance for loan losses(31,697)(21,902)(15,204)
Net Loans 1,777,090 1,876,487 1,797,883
Bank premises and equipment, net42,888 40,926 38,688
Other real estate owned 4,547 735 288
Goodwill and other intangible
assets 55,823 56,452 57,019
Other assets57,010 42,410 37,149
$2,296,999 $2,419,874 $2,260,173
Liabilities and Shareholders' Equity
Liabilities
Deposits
Demand deposits (noninterest
bearing)$313,577$327,646$352,702
Savings deposits 938,645 1,056,025 885,851
Other time deposits 354,268 332,838 345,047
Time certificates of $100,000
or more 283,911 270,824 283,591
Total Deposits 1,890,401 1,987,333 1,867,191
Federal funds purchased and
securities sold under
agreements to repurchase,
maturing within 30 days86,830 88,100 96,927
Borrowed funds 65,083 65,030 14,521
Subordinated debt 53,610 53,610 53,610
Other liabilities 10,893 11,420 10,853
2,106,817 2,205,493 2,043,102
Shareholders' Equity
Preferred stock 0 0 0
Common stock1,928 1,920 1,914
Additional paid in capital 92,120 90,924 90,748
Retained earnings 96,741 122,396 126,293
Treasury stock (964) (1,193)(34)
189,825 214,047 218,921
Accumulated other comprehensive
gain (loss), net 357 334 (1,850)
Total Shareholders' Equity190,182 214,381 217,071
$2,296,999 $2,419,874 $2,260,173
Common Shares Outstanding 19,219,113 19,110,089 19,172,239
CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Quarters
(Dollars in thousands, 20082007 Last 12
except per share data)SecondFirst FourthThird Months
Net income (loss) $(21,316)$1,763 $1,903 $ 285 $(17,365)
Operating Ratios
Return on average
assets -GAAP basis
(2),(3) (3.65)% 0.30% 0.32% 0.05% (0.74)%
Return on average
tangible assets
(2), (3), (4) (3.70) 0.34 0.36 0.09(0.73)
Return on average
shareholders'
equity-GAAP
basis (2),(3)(39.79) 3.28 3.48 0.51(7.98)
Return on average
tangible shareholders'
equity (2), (3), (4) (53.27) 4.95 5.21 1.18 (10.28)
Net interest margin
(1),(2)3.69 3.74 3.71 3.94 3.77
Average equity to
average assets 9.17 9.17 9.20 9.69 9.31
Credit Analysis
Net charge-offs $ 33,541 $4,401 $4,451 $1,039 $43,432
Net charge-offs to
average loans 7.28% 0.93% 0.92% 0.22%2.31%
Loan loss provision $ 42,237 $5,500 $3,813 $8,375 $59,925
Allowance to loans at
end of period 1.75% 1.22% 1.15% 1.19%
Nonperforming
assets $ 80,771$65,670$68,569$45,894
Nonperforming assets
to loans and other
real estate owned at
end of period 4.45% 3.50% 3.61% 2.42%
Nonaccrual loans and
accruing loans 90 days
or more past due to
loans outstanding
at end of period 4.23 3.46% 3.57% 2.44%
Per Share Common Stock
Net income (loss)
diluted-GAAP basis $(1.12) $0.09 $0.10 $0.01 $(0.92)
Net income (loss)
basic-GAAP basis (1.12) 0.09 0.10 $0.02(0.91)
Cash dividends declared 0.16 0.16 0.16 0.16 0.64
Book value per share9.90 11.25 11.22 11.20
Average Balances
Total assets$2,349,749 $2,357,528 $2,361,086 $2,279,036
Less: Intangible
assets 55,976 56,291 56,605 56,884
Total average
tangible assets$2,293,773 $2,301,237 $2,304,481 $2,222,152
Total equity $215,448 $216,283 $217,172 $ 220,868
Less: Intangible assets 55,976 56,291 56,605 56,884
Total average tangible
equity $159,472 $159,992 $160,567 $ 163,984
(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) on available for sale securities 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 operating earnings growth.
CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
June 30, December 31, June 30,
SECURITIES 200820072007
U.S. Treasury and U.S. Government
Agencies $0 $13,913 $26,690
Securities - Trading0 13,913 26,690
U.S. Treasury and U.S. Government
Agencies 22,452 30,405 35,044
Mortgage-backed 227,977 218,937 143,325
Obligations of states and political
subdivisions 2,033 2,057 2,071
Other securities 3,336 3,517 2,692
Securities - Available for Sale 255,798 254,916 183,132
Mortgage-backed 23,772 25,755 27,693
Obligations of states and political
subdivisions 6,141 6,145 6,170
Securities - Held for Investment 29,913 31,900 33,863
Total Securities $285,711$300,729$243,685
June 30, December 31, June 30,
LOANS200820072007
Construction and land development$540,283$609,567$601,552
Real estate mortgage1,097,232 1,074,814 991,320
Installment loans to individuals 76,098 86,362 79,616
Commercial and financial 94,812 126,695 139,014
Other loans 362 951 1,585
Total Loans $1,808,787 $1,898,389 $1,813,087
AVERAGE BALANCES, YIELDS AND RATES (1) (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2008
Second QuarterFirst Quarter
Average Yield/AverageYield/
(Dollars in thousands)Balance Rate Balance Rate
Assets
Earning assets:
Securities:
Taxable $280,623 5.03 % $280,487 5.11 %
Nontaxable 8,164 6.57 8,166 6.51
Total Securities 288,787 5.08 288,653 5.15
Federal funds sold and other
investments 64,558 2.83 26,311 4.54
Loans, net1,854,015 6.12 1,897,625 6.62
Total Earning Assets2,207,360 5.89 2,212,589 6.40
Allowance for loan losses (22,992) (22,563)
Cash and due from banks 46,05746,614
Premises and equipment 42,88542,029
Other assets 76,43978,859
$2,349,749$2,357,528
Liabilities and Shareholders'
Equity
Interest-bearing liabilities:
NOW $70,135 1.47 % $65,752 2.41 %
Savings deposits 106,277 0.72 104,591 0.70
Money market accounts 788,389 1.95 818,920 2.57
Time deposits 641,092 3.99 600,704 4.53
Federal funds purchased
and other
short-term borrowings 90,136 1.47 103,541 2.45
Other borrowings 118,816 3.89 118,839 4.94
Total Interest-Bearing
Liabilities1,814,845 2.68 1,812,347 3.26
Demand deposits (noninterest-
bearing) 316,614 323,363
Other liabilities 2,842 5,535
Total Liabilities 2,134,301 2,141,245
Shareholders' equity215,448 216,283
$2,349,749$2,357,528
Interest expense as a % of
earning assets 2.21 %2.67 %
Net interest income as a % of
earning assets 3.69 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.
AVERAGE BALANCES, YIELDS AND RATES (1)(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2007
Second Quarter
AverageYield/
(Dollars in thousands) Balance Rate
Assets
Earning assets:
Securities:
Taxable$267,308 5.34 %
Nontaxable8,323 6.58
Total Securities 275,631 5.37
Federal funds sold and other
investments 48,140 5.52
Loans, net 1,783,156 7.41
Total Earning Assets 2,106,927 7.10
Allowance for loan losses(14,358)
Cash and due from banks 70,274
Premises and equipment38,445
Other assets 76,390
$2,277,678
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
NOW $170,588 2.61 %
Savings deposits 121,159 0.71
Money market accounts 591,403 3.13
Time deposits 617,905 4.88
Federal funds purchased
and other
short-term borrowings 110,123 4.40
Other borrowings67,816 7.04
Total Interest-Bearing
Liabilities 1,678,994 3.79
Demand deposits (noninterest-bearing)370,953
Other liabilities 8,711
Total Liabilities2,058,658
Shareholders' equity 219,020
$2,277,678
Interest expense as a % of earning
assets 3.02 %
Net interest income as a % of earning
assets 4.09
(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.
SOURCE Seacoast Banking Corporation of Florida
