STUART, Fla., May 11 /PRNewswire-FirstCall/ -- As reported previously
in its earnings release for the first quarter of 2007, Seacoast elected to
early adopt Financial Accounting Standards (FAS) 159 and selected
approximately $251 million of investment securities to be reported
beginning January 1, 2007 at fair value. Subsequent to quarter end $225
million of these securities were repositioned based on a revised outlook
with regard to the Company's interest rate exposures. A transition
adjustment, net of tax of $3.7 million, to the carrying value for the
securities selected for fair value accounting was initially made as a
charge to beginning retained earnings in accordance with the Company's
understanding and interpretation of FAS 159 following a thoughtful
evaluation and extensive discussion by management, the Audit Committee, and
the Company's independent registered public accounting firm. Additional
interpretations of the requirements for early adoption of FAS 159 including
general comments made more recently by the Securities and Exchange
Commission and further analysis by the accounting industry have caused the
Company to conclude that it should record the entire transition adjustment
as a charge to earnings for the first quarter of 2007 rather than a charge
to beginning retained earnings. Accordingly, the Company will include this
adjustment in its Condensed Consolidated Statement of Income for the first
quarter of 2007 in its Form 10-Q which will be filed with the Commission.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050916/SEACOASTLOGO )
As stated in the earnings release for the first quarter 2007 the
securities repositioning is expected to improve overall margin performance
in the coming quarters. This revision is expected to reduce GAAP earnings
for the first quarter by approximately $3.7 million or $ 0.20 diluted
earnings per share. This decision has no effect on operating earnings for
the first quarter.
The impact of this change on net income and diluted earnings per share
(DEPS) for first quarter 2007 is summarized below:
AMOUNT DEPS
Previously Reported Net Income $ 6,427 $ 0.34
Less: Trading account profits
(net of tax) 365 0 .02
Operating Earnings 6,062 0.32
Less: Securities Losses (net of tax) 3,293 0.18
Net Income $ 2,769 $ 0.14
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, 2006 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.
SOURCE Seacoast Banking Corporation of Florida
 back to top
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, +1-772-221-282, both of
Seacoast Banking Corporation of Florida
|
