STUART, Fla., Oct. 16 /PRNewswire-FirstCall/ -- Seacoast Banking
Corporation of Florida (Nasdaq: SBCF), a bank holding company whose
principal subsidiary is Seacoast National Bank, announced today that it
expects a loan loss provision in the third quarter of approximately $8.4
million and nonperforming loans to increase to approximately 2.4 percent of
loans at quarter-end. The company attributes the reserve strengthening to
continued softening of residential real estate markets in South Florida and
resulting valuation declines. The allowance for loan losses is expected to
total approximately 1.19% of loans at quarter-end. Nonperforming loans at
quarter end will primarily consist of residential development loans secured
with single family homes, lots and land. A substantial portion of the
provision expense for the quarter is related to valuation adjustments
(based on current appraisal information) associated with real estate held
as collateral for nonperforming loans.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050916/SEACOASTLOGO )
Seacoast also announced the implementation of expense savings totaling
approximately $2.0 million for 2007. The expense reductions are primarily
the elimination of executive bonus compensation for the year, lower
incentive payouts for senior officers and reduced profit sharing
compensation, all as a result of lower than expected earnings performance.
These savings will reduce compensation expense by approximately $1.5
million in the third quarter and approximately $500 thousand in the fourth
quarter and will remain in effect until the Company produces meaningful
earnings improvements. The Company has also identified additional savings
totaling approximately $3.5 million annually that it intends to implement
over the next two quarters involving the consolidation of four branch
offices, reductions in staff and reductions in marketing costs and other
professional fees.
Seacoast intends to release quarter-end results on Tuesday, October 23,
2007 after the market closes. The Company will host a conference call on
Wednesday, October 24 at 10:00 a.m. (Eastern Time) to discuss the earnings
results and business trends. Investors may call in (toll-free) by dialing
(800) 640-9765 (access code: 19349003; 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 October 24 by dialing (877) 213-9653 (domestic), using the
passcode 19349003.
Investors may access a copy of Seacoast's earnings results on Tuesday,
October 23, 2007 at the company's website at http://www.seacoastbanking.net and
selecting Press Releases under the heading About Seacoast.
Seacoast, with approximately $2.3 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, 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
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Related links:
http://www.seacoastbanking.net
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CONTACT:
Dennis S. Hudson, III, Chairman 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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