STUART, Fla., Jan. 25 /PRNewswire-FirstCall/ -- Seacoast Banking
Corporation of Florida (Nasdaq: SBCF), 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 ("DEPS") was $1.28 for 2006, compared to
$1.24 DEPS for the prior year, an increase of 3.2 percent. Cash operating
earnings*, excluding the impacts of merger and other charges net interest
rate swap (profits) losses, a non-recurring gain on the sale of a
partnership interest, and amortization of core deposit premium, totaled
$1.30 DEPS, up 2.4 percent from a year ago.
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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 will host a conference call on Friday, January 26 at 9:00 a.m.
(Eastern Time) to discuss the earnings results and business trends.
Investors may call in (toll-free) by dialing (866) 418-3599 (access code:
16765488; leader: Dennis S. Hudson). Charts will be used during the
conference call and may be accessed at Seacoast's website at
http://www.seacoastbanking.net by selecting Presentations under the heading
Investor Services. A replay of the call will be available beginning the
afternoon of January 26 by dialing (877) 213-9653 (domestic), using the
passcode 16765488.
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.
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, 2005 under "Special
Cautionary Notice Regarding Forward-Looking Statements," and otherwise in
our SEC reports and filings. Such reports are available upon request from
Seacoast, or from the Securities and Exchange Commission, including through
the SEC's Internet website at http://www.sec.gov.
* 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.
SOURCE Seacoast Banking Corporation of Florida
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Related links:
http://www.seacoastbanking.net
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20050916/SEACOASTLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Dennis S. Hudson, III, Chairman and Chief
Executive Officer, +1-772-288-6086, or William R. Hahl, Executive
Vice President-Chief Financial Officer, +1-772-221-2825, both of
Seacoast Banking Corporation of Florida
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