STUART, Fla., July 26 /PRNewswire-FirstCall/ -- Seacoast Banking
Corporation of Florida (Nasdaq: SBCF), a bank holding company whose
principal subsidiary is First National Bank and Trust Company of the
Treasure Coast, today announced 2004 second quarter net income of $3.886
million or $0.25 diluted earnings per share ("DEPS"), up 9.5 percent
compared to the $3.550 million or $0.23 DEPS in the year-ago quarter.
For the first six months, net income totaled $7.511 million or $0.48
DEPS, an increase of 10.9 percent compared to $6.773 million and $0.43
DEPS earned in 2003.
"Over the past year we began implementing an expansion of new offices
and personnel. The improved growth in assets, loans and deposits is
beginning to prove our expansion successful. In addition, the change in
loan mix, which began over two years ago, from long-term fixed rate
residential lending to shorter term higher yield commercial and consumer
lending, has combined to produce higher total revenues and reduced exposure
to rising interest rates," said Dennis S. Hudson, III, President and Chief
Executive Officer. "Overshadowing the improvements this quarter, however,
are the prospects for future growth and the attractive demographics of our
markets, which should bring continued growth in earnings, loans and
deposits. The current and future business conditions in the company's
markets remain exceptional."
Highlights for the quarter include the following:
- Assets, loans and deposits at the end of the second quarter increased
8.2 percent, 21.2 percent and 10.5 percent, respectively, over the
prior year; assets totaled $1.428 billion, loans totaled $789.3 million
and deposits totaled $1.188 billion at June 30, 2004;
- Total revenues (net interest income and noninterest income combined)
totaled $17.9 million, up 13.5 percent on an annualized basis from the
first quarter;
- Net interest income gained 12.1 percent on an annualized basis over
the first quarter and was up $2.1 million or 19.0 percent over prior
year's second quarter. For the first six months of 2004, net interest
income increased 15.0 percent over the prior year;
- Total noninterest income (excluding securities gains and losses) grew
an annualized 17.5 percent during the second quarter with improved
income from marine finance fees and debit card transaction fees. Marine
loan originations increased $11.7 million or 28.9 percent over the first
quarter 2004;
- Residential loan production was $72 million for the quarter and
$124 million for the first six months, compared to $68 million and
$153 million for the same periods in 2003, respectively. Revenues
from mortgage banking in 2004 have been in line with expectations, but
lower than a year ago, as the majority of mortgage originations have
been adjustable rate products which have been retained in the loan
portfolio;
- Seacoast Marine originated a total of $52 million in loans for the
second quarter with total fees of $994,000, up 15.7 percent when
compared to $859,000 for the same period in 2003;
- The solid earnings performance over the last year has maintained the
Company's strong capital position with an average equity to asset
ratio of 7.81 percent and an increase in book value per share from $6.63
to $6.77;
- For the three months ended June 30, 2004, reported return on average
assets was 1.11 percent, and return on total average equity was 14.39
percent.
Nonperforming assets decreased $681,000 from a year ago to $2.6 million
or 0.32 percent of loans and other real estate owned outstanding at June 30,
2004. Net charge-offs were $17,000 for the first six months of 2004,
compared to $715,000 for same period for 2003. The allowance for loan
losses totaled $6.4 million and represented 0.82 percent of loans, compared
to 0.94 percent in the prior year. The Company's net charge-offs and
nonperforming asset levels have historically been much better than industry
averages. The Company's historically low charge-offs and exceptional and
improving credit measures mitigated the required addition to the allowance
for loan losses due to loan growth. The Company's current reserve coverage
of nonperforming assets is 251 percent, compared to 190 percent at June 30,
2003. Management believes that its credit underwriting systems and
processes have remained effective and expects all measures of credit quality
to remain strong and stable. Therefore, the provision charged to operations
for the first six months has been minimal, absent a required component for
higher historical loan losses.
Fully taxable net interest income for the second quarter 2004 was
$13.3 million, up 19 percent from the same period a year earlier. The net
interest margin for the quarter was 4.00 percent, compared to 3.98 percent
last quarter and 3.63 percent in the second quarter 2003. The improvement
in net interest income and the margin was achieved by a continuation of
strong loan and deposit growth and benefited from the planned changes in
loan mix.
The expansion into Palm Beach has added to the Company's overall
commercial and commercial real estate lending capabilities over the last
twelve months. Commercial and commercial real estate loans originated
exceeded $147 million for the first six months of 2004, compared to $82
million for the same period in 2003. A total of $43 million of fixed rate
residential mortgage loans was closed in the first half of 2004 and
approximately $41 million was sold in the secondary market. The growth in
shorter duration commercial and consumer loans, combined with the sale of
long-term fixed rate 1-4 family loans, has improved the mix of the loan
portfolio. At June 30, 2004, the loan portfolio was comprised of: 28
percent residential real estate mortgage loans, 47 percent commercial real
estate, 6 percent commercial and industrial loans, and 19 percent consumer
loans.
The combination of favorable economic conditions and the expansion into
Palm Beach County should have greater impact on loan and deposit growth as
the year progresses. Two additional branch locations are scheduled to open
in late 2004 or early 2005. Average loans increased $31.8 million in the
second quarter 2004 or 4.4 percent, compared with an increase of $41.0
million or 5.9 percent during the first quarter of 2004. Average interest-
bearing deposit costs declined 7 basis points in the second quarter to 1.24
percent, and average interest bearing deposits increased by $29.6 million or
3.3 percent (13.2 percent annualized). Average demand deposits rose $56.0
million or 28.5 percent at quarter-end compared to a year ago and now
represent 21.4 percent of total deposits, compared to 18.3 percent a year
earlier.
Brokerage commissions and fees totaled $671,000 for the second quarter,
an improvement over the $586,000 earned in the prior year's second quarter.
For the first six months of 2004, brokerage commissions and fees totaled
$1.4 million, 37.8 percent higher than 2003's first six months. Trust
revenues were $517,000 for the second quarter, compared to the prior year's
results of $527,000, and stood at $1,055,000 at June 30, 2004, compared to
$1,051,000 for the first six months of 2003.
Noninterest expenses totaled $11.6 million, in line with the first
quarter results and the Company's expectations. Noninterest expenses
increased 6.8 percent for the first six months of 2004 when compared to
2003. The higher quarterly and six-month expenses are associated with
additional resources needed as a result of expanded market presence and
incentive compensation tied to the Company's improved performance. The
Company's overhead ratio for the second quarter was 65.3 percent and 65.9
percent for the first six months.
Seacoast will host a conference call on July 26, 2004 at 9:30 a.m.
(Eastern Time) to discuss the earnings results and business trends.
Investors may call in by dialing 888-639-6218 (passcode: 524179; leader:
Dennis S. Hudson, III). A replay of the call will be available beginning
the afternoon of July 26 by dialing 866-219-1444 (domestic), using the
passcode 524179.
Seacoast Banking Corporation of Florida has approximately $1.4 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.
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.
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 Banking Corporation of
Florida ("Seacoast" or the "Company") 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," "indicate,"
"would," "believe," "contemplate," "expect," "estimate," "continue," "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 conditions; 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 and sensitivities; 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 the Company's market area 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; the failure of assumptions underlying the
establishment of reserves for possible loan losses, and the risks of mergers
and acquisitions, including, without limitation, the related costs,
including integrating operations as part of these transactions, and the
failure to achieve the expected gains, revenue growth and/or expense savings
from such transactions.
All written or oral forward-looking statements attributable to the
Company are expressly qualified in their entirety by this Cautionary Notice
including, without limitation, those risks and uncertainties, described in
the Company's annual report on Form 10-K for the year ended December 31,
2003 under "Special Cautionary Notice Regarding Forward-Looking Statements"
and otherwise in the Company's SEC reports and filings. Such reports are
available upon request from Seacoast, or from the Securities and Exchange
Commission, including the SEC's 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) 2004 2003 2004 2003
Summary of Earnings
Net income $3,886 $3,550 $7,511 $6,773
Net interest
income(1) 13,324 11,198 26,256 22,837
Performance Ratios
Return on average
assets(2),(3) 1.11 % 1.09 % 1.09 % 1.06 %
Return on average
shareholders'
equity(2),(3) 14.39 14.08 13.93 13.58
Net interest
margin(1),(2) 4.00 3.63 4.00 3.76
Per Share Data(A)
Net income diluted $0.25 $0.23 $0.48 $0.43
Net income basic 0.25 0.23 0.49 0.44
Cash dividends
declared 0.13 0.10 0.26 0.20
June 30, Increase/
2004 2003 (Decrease)
Credit Analysis
Net charge-offs year-
to-date $17 $715 (97.6)%
Net charge-offs to
average loans -- % 0.21 % (100.0)
Loan loss provision
year-to-date $300 $-- n/m
Allowance to loans at
end of period 0.82 % 0.94 % (12.8)
Nonperforming assets $2,557 $3,238 (21.0)
Nonperforming assets
to loans and other real
estate owned
at end of period 0.32 % 0.50 % (36.0)
Selected Financial
Data
Total assets $1,428,109 $1,320,151 8.2
Securities - Trading
(at fair value) 1,080 10,949 (90.1)
Securities - Available
for sale (at fair value) 477,754 463,848 3.0
Securities - Held for
investment (at
amortized cost) 76,656 113,720 (32.6)
Net loans 782,901 645,380 21.3
Deposits 1,188,165 1,075,252 10.5
Shareholders' equity 104,713 101,570 3.1
Book value per share(A) 6.77 6.63 2.1
Tangible book value
per share (A) 6.59 6.43 2.5
Average shareholders'
equity to average assets 7.81 % 7.77 % 0.5
(A) Reflects 10% stock dividend paid as a stock split effective August
1, 2003.
(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.
n/m = not meaningful
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (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) 2004 2003 2004 2003
Interest on securities:
Taxable $4,742 $3,716 $9,256 $7,749
Nontaxable 28 40 56 81
Interest and fees on loans 11,829 11,702 23,532 23,684
Interest on federal funds
sold 27 20 63 41
Total Interest
Income 16,626 15,478 32,907 31,555
Interest on deposits 907 864 1,675 1,767
Interest on time
certificates 1,957 2,596 4,100 5,297
Interest on borrowed money 470 857 942 1,730
Total Interest
Expense 3,334 4,317 6,717 8,794
Net Interest Income 13,292 11,161 26,190 22,761
Provision for loan losses 150 0 300 0
Net Interest Income
After Provision for
Loan Losses 13,142 11,161 25,890 22,761
Noninterest income:
Service charges on
deposit accounts 1,094 1,202 2,201 2,419
Trust income 517 527 1,055 1,051
Mortgage banking fees 472 1,223 954 2,861
Brokerage commissions
and fees 671 586 1,386 1,006
Marine finance fees 994 859 1,757 1,666
Debit card income 351 320 649 609
Other deposit based
EFT fees 117 105 245 221
Other income 314 368 623 728
4,530 5,190 8,870 10,561
Securities gains (losses) (46) (11) 10 (1,168)
Total Noninterest
Income 4,484 5,179 8,880 9,393
Noninterest expenses:
Salaries and wages 4,609 4,273 9,108 8,432
Employee benefits 1,216 1,212 2,663 2,428
Outsourced data
processing 1,484 1,315 2,885 2,601
Occupancy expense 1,046 976 2,122 1,970
Furniture and
equipment expense 497 427 980 926
Marketing expense 603 518 1,253 1,068
Legal and
professional fees 372 370 662 778
FDIC assessments 43 41 84 82
Amortization of
intangibles 0 63 0 126
Other expense 1,750 1,610 3,390 3,269
Total Noninterest
Expenses 11,620 10,805 23,147 21,680
Income Before Income
Taxes 6,006 5,535 11,623 10,474
Provision for income taxes 2,120 1,985 4,112 3,701
Net Income $3,886 $3,550 $7,511 $6,773
Per share common stock
(A):
Net income diluted $0.25 $0.23 $0.48 $0.43
Net income basic 0.25 0.23 0.49 0.44
Cash dividends
declared 0.13 0.10 0.26 0.20
Average diluted shares
outstanding 15,737,475 15,640,582 15,789,999 15,657,015
Average basic shares
outstanding 15,331,382 15,325,412 15,381,266 15,320,819
(A) Reflects 10% stock dividend paid as a stock split effective August
1, 2003.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
June 30, December 31, June 30,
(Dollars in thousands) 2004 2003 2003
Assets
Cash and due from banks $48,633 $44,928 $37,522
Federal funds sold and interest
bearing deposits 257 255 254
Securities:
Trading (at fair value) 1,080 -- 10,949
Available for sale (at fair
value) 477,754 484,223 463,848
Held for sale (at amortized
cost) 76,656 80,866 113,720
Total Securities 555,490 565,089 588,517
Loans sold and available for sale 3,901 5,403 13,675
Loans 789,344 708,792 651,491
Less: Allowance for loan losses (6,443) (6,160) (6,111)
Net Loans 782,901 702,632 645,380
Bank premises and equipment 18,119 16,847 16,748
Other real estate owned 1,913 1,954 50
Other assets 16,895 16,715 18,005
$1,428,109 $1,353,823 $1,320,151
Liabilities and Shareholders' Equity
Liabilities
Deposits
Demand deposits (noninterest
bearing) $251,775 $233,087 $204,599
Savings deposits 587,539 527,400 497,930
Other time deposits 245,515 262,904 278,281
Time certificates of $100,000
or more 103,336 106,251 94,442
Total Deposits 1,188,165 1,129,642 1,075,252
Federal funds purchased and
securities sold under
agreements to repurchase,
maturing within 30 days 78,829 74,158 71,919
Other borrowings 39,781 40,000 65,000
Other liabilities 16,621 5,939 6,410
1,323,396 1,249,739 1,218,581
Shareholders' Equity
Preferred stock -- -- --
Common stock 1,710 1,710 1,710
Additional paid in capital 26,911 26,911 26,839
Retained earnings 98,826 95,336 92,489
Restricted stock awards (2,478) (1,947) --
Treasury stock (16,258) (15,350) (17,800)
108,711 106,660 103,238
Other comprehensive income (loss) (3,998) (2,576) (1,668)
Total Shareholders' Equity 104,713 104,084 101,570
$1,428,109 $1,353,823 $1,320,151
Common Shares Outstanding 15,463,808 15,503,626 15,328,669
Note: The balance sheet at December 31, 2003 has been derived from the
audited financial statements at that date.
CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Quarters
(Dollars in thousands, 2004 2003 Last 12
except per share data) Second First Fourth Third Months
Operating Ratios
Return on average
assets(2),(3) 1.11 % 1.05 % 1.14 % 1.04 % 1.09 %
Return on average
shareholders'
equity(2),(3) 14.39 13.31 14.46 13.27 13.97
Net interest
margin(1),(2) 4.00 3.98 3.82 3.44 3.83
Average equity to
average assets 7.71 7.91 7.87 7.84 7.83
Credit Analysis
Net charge-offs $(18) $35 $(20) $(29) $(32)
Net charge-offs to
average loans (0.01)% 0.02 % (0.01)% (0.02)% -- %
Loan loss provision $150 $150 $-- $-- $300
Allowance to loans
at end of period 0.82 % 0.85 % 0.87 % 0.92 %
Nonperforming
assets $2,557 $2,325 $3,045 $3,225
Nonperforming
assets to loans
and other real
estate owned at
end of period 0.32 % 0.31 % 0.43 % 0.48 %
Nonaccrual loans
and accruing loans
90 days or more
past due to loans
outstanding at
end of period 0.08 0.09 0.16 0.18
Per Share Common Stock(A)
Net income diluted $0.25 $0.23 $0.24 $0.22 $0.94
Net income basic 0.25 0.23 0.25 0.22 0.95
Cash dividends
declared 0.13 0.13 0.13 0.13 0.52
Book value per
share 6.77 6.90 6.71 6.75
(A) Reflects 10% stock dividend paid as a stock split effective August
1, 2003.
(1) Calculated on a fully taxable equivalent basis using amortized cost.
(2) These ratios are stated on an annualized basis and are not
necessarily indicative of ratios which may be expected for the entire
year.
(3) The calculation of ROA and ROE do not include the mark-to-market
unrealized gains (losses), because the unrealized gains (losses)
are not included in net income.
CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
June 30, December 31, June 30,
SECURITIES 2004 2003 2003
Mortgage-backed $1,080 $-- $10,949
Securites Trading 1,080 -- 10,949
U.S. Treasury and U.S. Government
Agencies 20,527 1,002 6,585
Mortgage-backed 451,601 477,018 451,109
Other securities 5,626 6,203 6,154
Securities Available for Sale 477,754 484,223 463,848
U.S. Treasury and U.S. Government
Agencies 4,998 4,998 4,997
Mortgage-backed 69,427 73,585 105,598
Obligations of states and political
subdivisions 2,231 2,283 3,125
Securities Held for Investment 76,656 80,866 113,720
Total Securities $555,490 $565,089 $588,517
June 30, December 31, June 30,
LOANS 2004 2003 2003
Real estate construction $147,780 $107,315 $83,871
Real estate mortgage 516,025 470,391 444,492
Instalment loans to individuals 78,529 84,512 79,295
Commercial and financial 46,751 46,310 43,034
Other loans 259 264 799
Total Loans $789,344 $708,792 $651,491
AVERAGE BALANCES, YIELDS AND RATES (1) (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2004 2003
Second Quarter First Quarter Second Quarter
Average Yield/ Average Yield/ Average Yield/
Balance Rate Balance Rate Balance Rate
(Dollars in thousands)
Assets
Earning assets:
Securities:
Taxable $562,030 3.37 % $546,639 3.30 % $555,142 2.68 %
Nontaxable 2,181 7.89 2,182 7.88 2,980 8.05
Total Securities 564,211 3.39 548,821 3.32 558,122 2.71
Federal funds sold
and other short-term
investments 11,219 0.97 15,150 0.96 6,769 1.19
Loans, net 762,092 6.23 730,308 6.37 671,740 7.00
Total Earning
Assets 1,337,522 5.00 1,294,279 5.02 1,236,631 5.03
Allowance for loan
losses (6,339) (6,200) (6,542)
Cash and due from
banks 38,348 36,985 47,638
Premises and
equipment 17,365 16,969 16,339
Other assets 14,360 14,324 11,687
$1,401,256 $1,356,357 $1,305,753
Liabilities and
Shareholders'
Equity
Interest-bearing
liabilities:
NOW (including
Super NOW) $78,409 0.46 % $74,402 0.46 % $66,854 0.58 %
Savings deposits 162,803 0.51 159,594 0.51 150,818 0.55
Money market
accounts 326,922 0.75 293,111 0.66 283,526 0.79
Time deposits 357,155 2.20 368,584 2.34 375,143 2.78
Federal funds
purchased and
securities sold
under agreements
to repurchase 69,184 0.84 79,989 0.85 62,430 0.83
Other borrowings 39,926 3.27 39,962 3.04 65,000 4.49
Total Interest-
Bearing
Liabilities 1,034,399 1.30 1,015,642 1.34 1,003,771 1.73
Demand deposits
(noninterest-
bearing) 252,435 228,526 196,451
Other liabilities 6,346 4,839 4,406
Total
Liabilities 1,293,180 1,249,007 1,204,628
Shareholders'
equity 108,076 107,350 101,125
$1,401,256 $1,356,357 $1,305,753
Interest expense as a
% of earning assets 1.00 % 1.05 % 1.40 %
Net interest income as
a % of earning assets 4.00 3.98 3.63
(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
Company News On-Call:
http://www.prnewswire.com/comp/105663.html
CONTACT:
Dennis S. Hudson, III, President and Chief
Executive Officer, +1-772-288-6086, or William R. Hahl, Executive
Vice President and Chief Financial Officer, +1-772-221-2825, both
of Seacoast Banking Corporation of Florida
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