STUART, Fla., Oct. 18 /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 reported net income of $3,880,000, or $0.25 diluted earnings per share
("DEPS"), up 13.6 percent compared to the prior year's net income for the same
quarter of $3,415,000, or $0.22 DEPS.
"Third quarter results reflect improving performance in key businesses and
our success in growing high-quality, high-value, long-term customer
relationships in markets many consider to be the most attractive in the state
of Florida," commented Dennis S. Hudson, III, President and Chief Executive
Officer. "Our focus remains on strategies that reward shareholders and
improve earnings over the long term."
Mr. Hudson noted that "the Company is being recognized as the commercial
bank best able to provide products and services that meet individual needs of
south Florida businesses." The Company's commercial lenders have originated
$280 million of new loans so far in 2004, which has increased loans
outstanding by $150.4 million or 21.2 percent compared to year-end December
31, 2003. The progress reflects the Company's successful transformation into
higher levels of commercial real estate loans while improving upon its
dominating franchise in its attractive and high-growth markets. In addition,
extraordinary opportunities caused by large competitors' acquisitions have
resulted in vastly improved loan and core deposit growth.
Highlights for the period include:
* A 13.6 percent increase in net income for the third quarter of 2004,
compared to the prior year, with a 13.6 percent increase in diluted earnings
per share;
* Demand deposit and low-cost savings deposit growth over the last twelve
months of 18.6 percent and 13.6 percent, respectively;
* Loan growth of 8.8 percent for the third quarter 2004 and 29.4 percent
over the last twelve months; and
* A net interest margin of 3.97 percent for the third quarter 2004,
compared to 3.31 percent a year earlier, and up 13 basis points over the
second quarter 2004.
Net income for the nine months ended September 30, 2004, increased
$1.2 million or 11.8 percent to $11.4 million or $0.72 DEPS, compared to
$10.2 million and DEPS of $0.65 for the same period last year.
The return on average equity was 14.13 percent in the September 2004
quarter and 14.05 percent for the nine months then ended. The return on
average assets for the most recent quarter was 1.09 percent compared to 1.04
percent one year ago.
Net interest income (taxable equivalent basis) for the three and nine
months periods ended September 30, 2004 grew by 29.5 percent and 19.4 percent,
respectively when compared to the same periods in 2003. The net interest
margin was 3.97 percent in the current quarter, up 13 basis points on a linked
quarter basis and 3.90 percent for the nine month period. The positive trend
in the net interest margin has been achieved in conjunction with the reporting
of better loan and deposit growth while maintaining low-cost deposit balances,
especially savings and demand deposits. Interest bearing deposit costs
averaged 1.29 percent in the current quarter and 1.28 percent for the first
nine months.
At September 30, 2004, total deposits increased by $100 million or 9.2
percent over the last twelve months. Demand deposits now represent 21.2
percent of total deposits, up from 19.5 percent a year earlier. Higher cost
certificates of deposit as a percent of total deposits declined to 29.5
percent compared to 33.1 percent at September 30, 2003.
Quarterly loan growth was $70 million, an annualized growth rate of 35.4
percent. Commercial and commercial real estate loan growth was $60 million in
the quarter, an annualized loan growth of 56.8 percent. Loan demand and
originations in both the Company's existing and new markets has been
exceptional so far this year. The positive loan growth trend should continue
for the remainder of 2004 due to commercial real estate loan originations that
are expected to be funded and a strong loan pipeline.
At quarter end, nonperforming assets were $389,000, a decline of
$2.2 million from the second quarter, due to the sale of an OREO property at a
gain. The allowance for loan losses at September 30, 2004 was $6.5 million,
up $337,000 over year-end December 31, 2003. The allowance is considered
adequate to cover the risks associated with the loan portfolio. Nonperforming
loans to total loans were six basis points and year-to-date net charge-offs
were four basis points, both consistent with prior periods and reflective of
the Company's consistent and exceptional credit quality.
Noninterest income, excluding securities gains and losses declined
$240,000 in the current quarter compared to the three months ended June 30,
2004. Declines in revenues from Seacoast Marine Finance and from investment
management services were partially offset by increased fees from deposit
service charges from customers and higher mortgage banking revenues. Both
lines of businesses were disrupted for approximately two weeks plus in
September by two hurricanes that directly hit the Company's markets and
resulted in fewer opportunities to transact business. Residential production
remains strong in the Company's markets. The Company has generated more
adjustable rate mortgages this year and it has elected to retain these credits
in its loan portfolio, therefore reducing the mortgage banking fees generated
from sales. Compared to the third quarter 2003, mortgage banking revenues
were $575,000 lower for the three months ended September 30, 2004. Year to
date residential mortgage originations totaled $182 million compared to
$209 million for the first nine months of 2003. This business was also
negatively impacted in September by the two hurricanes.
Noninterest expenses increased 12.7 percent for the three month period
ended September 30, 2004 over the comparable period in 2003 due to expenses
associated with the hurricanes, additional resources needed as a result of
market expansion, and increased incentive compensation tied to the Company's
improved performance. "We are very proud of the commitment and dedication
exhibited by our staff during the aftermath of the destruction inflicted by
two very powerful hurricanes," said Hudson. "In appreciation of their
efforts, we paid $500 to our non-officer employees to assist them in dealing
with their individual losses." These payments and other known losses from
these storms added approximately $250,000 to noninterest expenses this quarter
and should have no further earnings consequences.
The Company expects to continue to expand its commercial banking business
in 2004 and 2005 through market extension in the high growth contiguous
counties of Palm Beach and Brevard. Three new commercial bankers familiar
with these markets have joined the Company and should have immediate positive
impacts. All of these new employees and support staff joined the Company
throughout the third quarter 2004. One new office was opened in Brevard
County during the quarter. Two offices were opened in Palm Beach County in
2003 and three additional offices are under construction with two to open in
early 2005 and the other in late 2005 or early 2006.
Seacoast management will host a conference call on October 19 at 11:00
a.m. (Eastern Time) to discuss the earnings results and business trends.
Investors may call in (toll-free) by dialing 866-244-4518 (passcode: 570459;
leader: Dennis Hudson, III). Charts will be used during the conference call
and may be accessed at Seacoast's website at http://www.seacoastbanking.net
under "Presentations". A replay of the call will be available beginning the
afternoon of October 19 by dialing 866-219-1444 (domestic), using the passcode
570459.
Seacoast, with approximately $1.4 billion of assets, is one of the largest
independent commercial banking organizations in Florida. Seacoast is
headquartered on Florida's Treasure Coast, which is 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 Nine Months Ended
(Dollars in
thousands, except September 30, September 30,
per share data) 2004 2003 2004 2003
Summary of Earnings
Net income $3,880 $3,415 $11,391 $10,188
Net interest
income (1) 13,498 10,425 38,749 32,452
Performance Ratios
Return on average
assets (2), (3) 1.09 % 1.04 % 1.09 % 1.05 %
Return on average
shareholders'
equity (2), (3) 14.13 13.27 14.05 13.48
Net interest margin
(1), (2) 3.97 3.31 3.90 3.52
Per Share Data
Net income diluted $0.25 $0.22 $0.72 $0.65
Net income basic 0.25 0.22 0.74 0.66
Cash dividends
declared 0.14 0.13 0.40 0.33
September 30, Increase/
2004 2003 (Decrease)
Credit Analysis
Net charge-offs year-
to-date $213 $686 (69.0)%
Net charge-offs to
average loans 0.04 % 0.14 % (71.4)
Loan loss provision
year-to-date $550 $-- n/m
Allowance to loans at
end of period 0.76 % 0.92 % (17.4)
Nonperforming assets $389 $3,225 (87.9)
Nonperforming assets
to loans and other real
estate owned
at end of period 0.05 % 0.48 % (89.6)
Selected Financial
Data
Total assets $1,397,965 $1,319,431 6.0
Securities - Trading
(at fair value) -- 6,531 (100.0)
Securities -
Available for sale
(at fair value) 398,152 471,995 (15.6)
Securities - Held for
investment (at
amortized cost) 69,845 100,201 (30.3)
Net loans 852,676 657,951 29.6
Deposits 1,180,784 1,080,992 9.2
Shareholders' equity 107,636 103,476 4.0
Book value per share 6.97 6.75 3.3
Tangible book value
per share 6.79 6.56 3.5
Average shareholders'
equity to average assets 7.78 % 7.80 % (0.3)
(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 Nine Months Ended
September 30, September 30,
(Dollars in thousands,
except per share data) 2004 2003 2004 2003
Interest on securities:
Taxable $4,530 $3,681 $13,786 $11,430
Nontaxable 29 38 85 119
Interest and fees on loans 12,480 10,592 35,007 33,466
Interest on federal funds
sold 3 18 66 59
Total Interest Income 17,042 14,329 48,944 45,074
Interest on deposits 1,094 759 2,769 2,526
Interest on time
certificates 1,944 2,380 6,044 7,677
Interest on borrowed money 542 801 1,484 2,531
Total Interest Expense 3,580 3,940 10,297 12,734
Net Interest Income 13,462 10,389 38,647 32,340
Provision for loan losses 250 0 550 0
Net Interest Income
After Provision for
Loan Losses 13,212 10,389 38,097 32,340
Noninterest income:
Service charges on
deposit accounts 1,201 1,279 3,402 3,698
Trust income 556 494 1,611 1,545
Mortgage banking fees 523 1,098 1,477 3,959
Brokerage commissions
and fees 523 364 1,909 1,370
Marine finance fees 640 903 2,397 2,569
Debit card income 348 301 997 910
Other deposit based
EFT fees 108 106 353 327
Merchant income 503 405 1,508 1,215
Other income 428 347 1,051 1,075
4,830 5,297 14,705 16,668
Securities gains (losses) 16 (4) 26 (1,172)
Total Noninterest Income 4,846 5,293 14,731 15,496
Noninterest expenses:
Salaries and wages 5,004 4,214 14,112 12,646
Employee benefits 1,288 1,123 3,951 3,551
Outsourced data
processing 1,451 1,367 4,336 3,968
Occupancy expense 1,093 977 3,215 2,947
Furniture and
equipment expense 500 451 1,480 1,377
Marketing expense 582 492 1,835 1,560
Legal and
professional fees 375 339 1,037 1,117
FDIC assessments 42 44 126 126
Amortization of
intangibles 0 24 0 150
Other expense 1,692 1,637 5,082 4,906
Total Noninterest
Expenses 12,027 10,668 35,174 32,348
Income Before Income
Taxes 6,031 5,014 17,654 15,488
Provision for income taxes 2,151 1,599 6,263 5,300
Net Income $3,880 $3,415 $11,391 $10,188
Per share common stock:
Net income diluted $0.25 $0.22 $0.72 $0.65
Net income basic 0.25 0.22 0.74 0.66
Cash dividends
declared 0.14 0.13 0.40 0.33
Average diluted shares
outstanding 15,704,794 15,620,117 15,761,390 15,644,581
Average basic shares
outstanding 15,299,443 15,326,353 15,353,792 15,322,684
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Sept. 30, Dec. 31, Sept. 30,
(Dollars in thousands) 2004 2003 2003
Assets
Cash and due from banks $37,274 $44,928 $40,919
Federal funds sold and interest
bearing deposits 258 255 255
Securities:
Trading (at fair value) -- -- 6,531
Available for sale (at fair
value) 398,152 484,223 471,995
Held for sale (at amortized
cost) 69,845 80,866 100,201
Total Securities 467,997 565,089 578,727
Loans available for sale 3,335 5,403 6,162
Loans 859,173 708,792 664,091
Less: Allowance for loan losses (6,497) (6,160) (6,140)
Net Loans 852,676 702,632 657,951
Bank premises and equipment 18,589 16,847 16,777
Other real estate owned -- 1,954 2,029
Other assets 16,009 16,715 16,611
$1,396,138 $1,353,823 $1,319,431
Liabilities and Shareholders' Equity
Liabilities
Deposits
Demand deposits (noninterest
bearing) $248,355 $233,087 $210,771
Savings deposits 582,255 527,400 512,433
Other time deposits 241,993 262,904 268,824
Time certificates of $100,000
or more 106,354 106,251 88,964
Total Deposits 1,178,957 1,129,642 1,080,992
Federal funds purchased and
securities sold under
agreements to repurchase,
maturing within 30 days 61,829 74,158 63,746
Other borrowings 40,047 40,000 65,000
Other liabilities 7,669 5,939 6,217
1,288,502 1,249,739 1,215,955
Shareholders' Equity
Preferred stock -- -- --
Common stock 1,710 1,710 1,710
Additional paid in capital 26,911 26,911 26,839
Retained earnings 100,127 95,336 93,901
Restricted stock awards (2,478) (1,947) --
Treasury stock (16,686) (15,350) (17,841)
109,584 106,660 104,609
Accumulated comprehensive loss (1,948) (2,576) (1,133)
Total Shareholders' Equity 107,636 104,084 103,476
$1,396,138 $1,353,823 $1,319,431
Common Shares Outstanding 15,441,560 15,503,626 15,325,274
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
2004 2003
(Dollars in thousands, Last 12
except per share data) Third Second First Fourth Months
Operating Ratios
Return on average
assets (2),(3) 1.09 % 1.11 % 1.05 % 1.14 % 1.11 %
Return on average
shareholders' equity
(2),(3) 14.13 14.39 13.31 14.46 14.18
Net interest margin
(1),(2) 3.97 3.84 3.84 3.70 3.85
Average equity to
average assets 7.71 7.71 7.91 7.87 7.80
Credit Analysis
Net charge-offs
(recoveries) $196 $(18) $35 $(20) $193
Net charge-offs
(recoveries) to
average loans 0.09 % (0.01)% 0.02 % (0.01)% 0.03 %
Loan loss provision $250 $150 $150 $-- $550
Allowance to loans at
end of period 0.76 % 0.82 % 0.85 % 0.87 %
Nonperforming assets $389 $2,557 $2,325 $3,045
Nonperforming assets
to loans and other
real estate owned
at end of period 0.05 % 0.32 % 0.31 % 0.43 %
Nonaccrual loans and
accruing loans 90
days or more past
due to loans
outstanding at
end of period 0.06 0.08 0.09 0.16
Per Share Common Stock
Net income diluted $0.25 $0.25 $0.23 $0.24 $0.97
Net income basic 0.25 0.25 0.23 0.25 0.98
Cash dividends
declared 0.14 0.13 0.13 0.13 0.53
Book value per share 6.97 6.77 6.90 6.71
(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
Sept. 30, Dec. 31, Sept. 30,
SECURITIES 2004 2003 2003
Mortgage-backed $-- $-- $6,531
Securities Trading -- -- 6,531
U.S. Treasury and U.S. Government
Agencies 20,795 1,002 1,599
Mortgage-backed 371,523 477,018 464,220
Other securities 5,834 6,203 6,176
Securities Available for Sale 398,152 484,223 471,995
U.S. Treasury and U.S. Government
Agencies 4,999 4,998 4,998
Mortgage-backed 62,616 73,585 92,254
Obligations of states and political
subdivisions 2,230 2,283 2,949
Securities Held for Investment 69,845 80,866 100,201
Total Securities $467,997 $565,089 $578,727
Sept. 30, Dec. 31, Sept. 30,
LOANS 2004 2003 2003
Real estate construction $171,351 $107,315 $93,516
Real estate mortgage 550,171 470,391 449,528
Instalment loans to individuals 81,768 84,512 78,933
Commercial and financial 55,614 46,310 41,934
Other loans 269 264 180
Total Loans $859,173 $708,792 $664,091
AVERAGE BALANCES, YIELDS AND RATES(1)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2004 2003
Third Quarter Second Quarter Third Quarter
(Dollars in Average Yield/ Average Yield/ Average Yield/
thousands) Balance Rate Balance Rate Balance Rate
Assets
Earning assets:
Securities:
Taxable $518,637 3.49 % $562,030 3.37 % $575,915 2.56 %
Nontaxable 2,180 8.07 2,181 7.89 2,924 7.93
Total
Securities 520,817 3.51 564,211 3.39 578,839 2.58
Federal funds
sold and other
short-term
investments 1,166 1.02 11,219 0.97 7,265 0.98
Loans, net 827,880 5.99 762,092 5.97 662,425 6.35
Total Earning
Assets 1,349,863 5.02 1,337,522 4.85 1,248,529 4.56
Allowance for loan
losses (6,420) (6,339) (6,123)
Cash and due from
banks 34,787 38,348 31,240
Premises and
equipment 18,408 17,365 16,858
Other assets 13,473 14,360 11,472
$1,410,111 $1,401,256 $1,301,976
Liabilities and
Shareholders'
Equity
Interest-bearing
liabilities:
NOW (including
Super NOW) $70,026 0.47 % $78,409 0.46 % $61,928 0.47 %
Savings
deposits 159,258 0.51 162,803 0.51 154,759 0.51
Money market
accounts 358,530 0.90 326,922 0.75 290,248 0.67
Time deposits 347,337 2.23 357,155 2.20 365,558 2.58
Federal funds
purchased and
securities sold
under agreements
to repurchase 68,020 1.15 69,184 0.84 50,596 0.60
Other
borrowings 39,784 3.45 39,926 3.27 65,000 4.43
Total
Interest-
Bearing
Liabilities 1,042,955 1.37 1,034,399 1.30 988,089 1.58
Demand deposits
(noninterest-
bearing) 250,871 252,435 205,740
Other liabilities 7,536 6,346 6,069
Total
Liabilities 1,301,362 1,293,180 1,199,898
Shareholders'
equity 108,749 108,076 102,078
$1,410,111 $1,401,256 $1,301,976
Interest expense as
a % of earning
assets 1.06 % 1.00 % 1.25 %
Net interest income
as a % of earning
assets 3.97 3.84 3.31
(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
 back to top
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
|
