STUART, Fla., Oct. 24 /PRNewswire-FirstCall/ -- Seacoast Banking
Corporation of Florida (Nasdaq: SBCF), a bank holding company whose
principal subsidiary is Seacoast National Bank, today reported net income
totaling $5,869,000 for the third quarter of 2006, a 5.5 percent increase
over the same period a year ago. Diluted earnings per share ("DEPS") for
the third quarter of 2006 were $0.31, compared with $0.32 for the prior
year. Year-to-date 2006 net income grew by 21.7 percent and totaled $18.2
million, compared to $14.9 million in the same period last year.
Year-to-date DEPS was $0.98, which represented growth of 8.9 percent over
$0.90 earned in 2005.
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While earnings on a year-to-date basis were improved, results for the
quarter were affected by a more challenging interest rate environment and a
seasonal decline in fees related to the Company's wealth management
business and a particularly slow quarter for its marine finance business.
Mortgage banking revenues also remained soft during the quarter.
Deposit pricing pressure intensified during the quarter, and deposits
experienced seasonal balance declines which resulted in both an unfavorable
change in deposit mix and a reduction in noninterest bearing deposit
balances. We also believe that the slowdown in Florida housing activity may
be affecting commercial deposit growth.
While current economic factors, including an inverted yield curve, may
continue to challenge deposit growth and constrain margin expansion,
seasonal factors are anticipated to be less meaningful in the coming
quarter. The Company also anticipates revenues from its wealth management
and marine finance businesses to show seasonal improvement over the next
two quarters, consistent with past trends.
Third quarter highlights include:
* Average loan balances grew by 12 percent annualized for the quarter and
stood at $1.656 billion at quarter-end;
* Net interest margin for the quarter remained strong at 4.22 percent, an
increase from 4.01 percent one year earlier, although slightly below
the 4.29 percent posted in the second quarter of 2006;
* Deposit mix remained favorable compared to peers with noninterest
bearing deposits to total deposits at 21.7 percent at quarter-end;
* As in the past, the Company has no significant wholesale borrowings;
* The loan-to-deposit ratio at quarter-end stood at 85 percent, compared
with 68 percent one year earlier and 80 percent at June 30, 2006;
* Century National Bank (acquired on April 30, 2005) was successfully
integrated and rebranded into Seacoast National Bank in August 2006.
This concludes all pending systems integration and rebranding
activities;
* Total noninterest expenses were reduced by $1.0 million or 5.0 percent
on a linked quarter basis during the quarter (including $886,000 in
reduced integration costs and other nonrecurring charges);
* Additional opportunities arose to take advantage of potential market
disruptions with announcements during the quarter by the Company's two
largest local competitors of their intent to sell to a large Ohio-based
institution; and
* During the 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.
"Over the past two years we have significantly improved our margins and
operating performance as we have expanded our Florida footprint, which now
spans 13 counties with 44 offices from Orlando to Palm Beach, including
some of the fastest growing and wealthiest communities in the State. Assets
have grown by 68.2 percent over the past two years and stand at $2.351
billion today," commented Dennis S. Hudson, III, Chairman and Chief
Executive Officer. "While our earnings growth has been strong over the past
two years, the trends that emerged during the latest quarter slowed our
progress in the near term. Although we expect some improvement related to
seasonal factors in the coming quarters, headwinds related to the difficult
interest rate environment and the effects of a slowing residential real
estate market on economic activity generally in Florida are likely to
remain with us well into next year. As reported last quarter, we have also
begun a project that will critically review our overall expense structure
which we believe could provide meaningful improvements to overhead in 2007
and beyond."
Average loans, net for the quarter, increased $47.7 million, up 3.0
percent on a linked quarter basis, and increased $458.2 million or 39.0
percent from the third quarter 2005, including $204 million in loans
acquired in the second quarter of 2006 with the acquisition of Big Lake
National Bank. As expected, organic loan growth in the third quarter slowed
from prior quarters as existing real estate construction projects were
completed during the quarter and paid off. Loan growth is expected to range
from 8 to 12 percent annualized in the fourth quarter 2006.
Overall credit quality remained satisfactory. During the quarter
nonperforming assets grew due to the addition of a $9.6 million loan which
was placed on nonaccrual. While the loan is fully secured and current as to
principal and interest at September 30, 2006, the borrower is experiencing
financial difficulties. It is expected that the loan will remain current as
the guarantor has substantial liquid net worth, but was placed on
nonaccrual in accordance with the Company's loan policy. Third quarter 2006
net charge- offs totaled $23,000, compared to net loan recoveries of
$76,000 for the second quarter of 2006 and year-to-date net recoveries
totaled $133,000. After a third quarter provision for loan losses of
$475,000, the Company's loan loss allowance totaled $12.7 million or 0.77
percent of total loans.
The third quarter's net interest margin of 4.22 percent represented an
increase from the 4.01 percent achieved in the third quarter of 2005, but
was 7 basis points lower than the second quarter 2006's results of 4.29
percent. This decline, which was not expected, was largely attributable to
margin pressure caused by a more competitive interest rate environment and
a shift in deposit mix resulting from a $56.9 million decline in average
noninterest bearing deposits during the quarter. The Company's local
competitors continued to aggressively increase their rates throughout the
third quarter, causing additional unexpected margin compression. The
Company has been and will continue to remain cautious in its pricing of its
certificates of deposit as it believes the growing risk of a slowing
national economy could produce lower short-term interest rates in the
future.
Total cost of deposits was 2.29 percent, including noninterest bearing
demand deposits. Our cost of deposits increased 30 basis points during the
third quarter and was 97 basis points higher than the same period in 2005.
The Company believes that the net interest margin is likely to remain under
pressure as long as the yield curve remains inverted.
Fully taxable net interest income decreased to $23,144,000 or 3.7
percent from second quarter 2006, but was higher than last year's third
quarter by $4.1 million or 21.2 percent. The decrease in net interest
income from the second quarter comes from the decline in earning assets for
the reasons previously discussed and higher incremental deposit costs.
The cost for interest bearing deposits rose to 2.95 percent from 2.64
percent in the second quarter 2006. The higher interest rates and uncertain
economic environment are expected to continue to pressure costs as
customers seek higher yielding deposit products. Higher cost interest
bearing time deposits increased $49.4 million or 9.2 percent during the
third quarter 2006. Lower cost savings, NOW and money market balances
decreased $56.2 million or 5.6 percent in the three months ended September
30, 2006.
Noninterest expenses totaled $18.9 million for the third quarter of
2006, a $1.0 million or 5.0 percent decrease on a linked quarter basis, of
which $886,000 was related to reduced merger and other nonrecurring
charges. The Company's overhead ratio for the third quarter was 64.7
percent, compared to 61.1 percent, excluding merger and other nonrecurring
charges for the second quarter of 2006. The Company has plans to complete
its previously disclosed evaluation of every aspect of overhead during the
fourth quarter, which we believe will produce lower operating costs in 2007
and an improved overhead ratio. We also completed our systems integration
of Century National Bank and Big Lake National Bank, which have merged with
Seacoast National Bank. Combining our banks and customers should have a
favorable impact on our costs in the future.
Noninterest income, excluding securities losses, totaled $17.4 million
for the first nine months of 2006 compared to $15.4 million in 2005, an
increase of 12.7 percent. During the third quarter, wealth management fees
were lower due to normal seasonal changes and were $566,000 lower when
compared to the unusually strong results in the second quarter. Marine
finance fees were down $390,000 compared to the second quarter, as higher
fuel prices and higher interest rates dampened demand and resulted in fewer
finance opportunities. Noninterest income related to mortgage production
was also adversely affected by slowing residential sales and declined in
the third quarter by $77,000 compared to the second quarter. Should
seasonal conditions improve as expected in the fourth quarter, fees from
these lines of business will be higher than produced this quarter.
Seacoast will host a conference call on Wednesday, October 25 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:
15839500; 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. A replay of the call
will be available beginning the afternoon of October 25 by dialing (877)
213-9653 (domestic), using the passcode 15839500.
Seacoast Banking Corporation of Florida, with approximately $2.3
billion in assets, is one of the largest independent commercial banking
organizations in Florida. Seacoast has 44 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.
FINANCIAL HIGHLIGHTS (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Three Months Ended Nine Months Ended
(Dollars in thousands, September 30, September 30,
except per share data) 2006 2005 2006 2005
Summary of Earnings
Net income (GAAP) $5,869 $5,565 $18,169 $14,926
Merger and other
nonrecurring charges - - 576 -
Earnings, excluding
merger and other
nonrecurring charges 5,869 5,565 18,745 14,926
Amortization of core
deposit premiums 205 118 491 269
Net interest rate swap
(profits) losses - - - 173
Cash operating earnings* $6,074 $5,683 $19,236 $15,368
Net interest income(1) $23,144 $19,091 $67,448 $52,235
Performance Ratios
Return on average assets(2),(3)
Using GAAP earnings 0.99% 1.09% 1.06% 1.06%
Using cash operating
earnings* on average
tangible assets 1.05 1.14 1.15 1.10
Return on average
shareholders' equity(2),(3)
Using GAAP earnings 11.03 14.59 12.61 14.94
Using cash operating
earnings* on average
tangible equity 15.64 19.50 17.99 18.09
Net interest margin(1),(2) 4.22 4.01 4.22 3.94
Per Share Data
Net income diluted (GAAP) $0.31 $0.32 $0.98 $0.90
Merger and other
nonrecurring charges - - 0.03 -
Earnings, excluding
merger and other
nonrecurring charges 0.31 0.32 1.01 0.90
Amortization of core
deposit premium 0.01 0.01 0.02 0.02
Net interest rate swap
(profits) losses - - - 0.01
Cash operating earnings*
diluted $0.32 $0.33 $1.03 $0.93
Net income basic (GAAP) $0.31 $0.33 $1.00 $0.92
Cash dividends declared 0.15 0.15 0.45 0.43
(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 one-time 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, September 30, Increase/
except per share data) 2006 2005 (Decrease)
Credit Analysis
Net charge-offs (recoveries)
year-to-date $(133) $167 (179.6)%
Net charge-offs (recoveries) to
average loans (0.01) % 0.02 % (150.0)
Loan loss provision year-to-date $1,035 $987 4.9
Allowance to loans at end of
period 0.77 % 0.71 % 8.5
Nonperforming assets $10,437 $325 3,111.4
Nonperforming assets to loans
and other real estate owned
at end of period 0.63 % 0.03 % 2,000.0
Selected Financial Data
Total assets $2,351,297 $2,086,073 12.7
Securities - Held for sale (at
fair value) 345,971 404,777 (14.5)
Securities - Held for investment
(at amortized cost ) 137,197 157,369 (12.8)
Net loans 1,643,368 1,209,276 35.9
Deposits 1,957,893 1,778,574 10.1
Shareholders' equity 208,560 149,526 39.5
Book value per share 10.99 8.76 25.5
Tangible book value per share 8.02 6.73 19.2
Average shareholders' equity
to average assets 8.39 % 7.10 % 18.2
Average Balances (Year-to-Date)
Total Assets $2,295,345 $1,881,211 22.0
Less: Intangible assets 49,686 19,945 149.1
Total average tangible assets $2,245,659 $1,861,266 20.7
Total equity $192,647 $133,548 44.3
Less: Intangible assets 49,686 19,945 149.1
Total average tangible equity $142,961 $113,603 25.8
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) 2006 2005 2006 2005
Interest on securities:
Taxable $5,366 $5,593 $16,883 $16,270
Nontaxable 97 15 206 51
Interest and fees on loans 30,730 19,560 82,717 51,394
Interest on federal funds
sold and other investments 521 899 2,874 2,093
Total Interest Income 36,714 26,067 102,680 69,808
Interest on deposits 5,366 2,565 13,542 6,097
Interest on time certificates 5,888 3,152 15,186 8,362
Interest on borrowed money 2,412 1,285 6,693 3,201
Total Interest Expense 13,666 7,002 35,421 17,660
Net Interest Income 23,048 19,065 67,259 52,148
Provision for loan losses 475 280 1,035 987
Net Interest Income
After Provision for
Loan Losses 22,573 18,785 66,224 51,161
Noninterest income:
Service charges on deposit
accounts 1,866 1,356 4,909 3,695
Trust income 691 701 2,204 1,968
Mortgage banking fees 254 525 794 1,520
Brokerage commissions
and fees 586 567 2,404 1,935
Marine finance fees 478 728 2,139 2,262
Debit card income 563 441 1,584 1,298
Other deposit based EFT fees 108 93 307 323
Merchant income 623 525 1,921 1,700
Interest rate swap losses - - - (267)
Other income 402 343 1,132 994
5,571 5,279 17,394 15,428
Securities gains (losses),
net 2 34 (84) 78
Total Noninterest Income 5,573 5,313 17,310 15,506
Noninterest expenses:
Salaries and wages 7,805 6,123 22,667 17,053
Employee benefits 2,054 1,807 5,623 4,738
Outsourced data
processing costs 1,746 1,629 5,675 4,868
Occupancy expense 1,947 1,346 5,542 3,738
Furniture and
equipment expense 707 561 1,834 1,596
Marketing expense 952 776 2,795 2,505
Legal and professional
fees 693 650 1,929 1,830
FDIC assessments 66 65 204 169
Amortization of
intangibles 315 181 755 414
Other expense 2,602 2,270 7,848 6,451
Total Noninterest
Expenses 18,887 15,408 54,872 43,362
Income Before Income Taxes 9,259 8,690 28,662 23,305
Provision for income taxes 3,390 3,125 10,493 8,379
Net Income $5,869 $5,565 $18,169 $14,926
Per share common stock:
Net income diluted $0.31 $0.32 $0.98 $0.90
Net income basic 0.31 0.33 1.00 0.92
Cash dividends declared 0.15 0.15 0.45 0.43
Average diluted shares
outstanding 19,141,484 17,253,536 18,517,508 16,556,452
Average basic shares
outstanding 18,767,257 16,856,109 18,142,813 16,175,803
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Sept. 30, Dec. 31, Sept. 30,
(Dollars in thousands) 2006 2005 2005
Assets
Cash and due from banks $80,249 $67,373 $98,478
Federal funds sold and other
investments 14,096 153,120 125,769
Total Cash and Cash Equivalents 94,345 220,493 224,247
Securities:
Held for sale (at fair value) 345,971 392,952 404,777
Held for investment (at
amortized cost) 137,197 150,072 157,369
Total Securities $483,168 $543,024 $562,146
Loans available for sale 3,516 2,440 8,132
Loans, net of unearned income 1,656,061 1,289,995 1,217,919
Less: Allowance for loan losses (12,693) (9,006) (8,643)
Net Loans 1,643,368 1,280,989 1,209,276
Bank premises and equipment 36,400 22,218 21,559
Other real estate owned - - -
Goodwill and other intangible assets 56,394 33,901 34,461
Other assets 34,106 29,109 26,252
$2,351,297 $2,132,174 $2,086,073
Liabilities and Shareholders' Equity
Liabilities
Deposits
Demand deposits (noninterest
bearing) $424,624 $472,996 $441,880
Savings deposits 944,190 882,031 886,898
Other time deposits 334,713 256,484 282,505
Time certificates of $100,000
or more 254,366 172,708 167,291
Total Deposits 1,957,893 1,784,219 1,778,574
Federal funds purchased and securities
sold under agreements to repurchase,
maturing within 30 days 104,179 96,786 81,100
Borrowed funds 26,516 45,485 45,556
Subordinated debt 41,238 41,238 20,619
Other liabilities 12,911 11,726 10,698
2,142,737 1,979,454 1,936,547
Shareholders' Equity
Preferred stock - - -
Common stock 1,899 1,710 1,710
Additional paid in capital 91,309 46,258 46,193
Retained earnings 122,145 112,271 108,898
Restricted stock awards (3,998) (3,447) (3,695)
Treasury stock (90) (218) (325)
211,265 156,574 152,781
Accumulated other comprehensive
loss, net (2,705) (3,854) (3,255)
Total Shareholders' Equity 208,560 152,720 149,526
$2,351,297 $2,132,174 $2,086,073
Common Shares Outstanding 18,980,329 17,084,315 17,074,287
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
2006
(Dollars in thousands, except
per share data) Third Second First
Net income (GAAP) $5,869 $6,434 $5,866
Merger and other nonrecurring
charges - 576 -
Earnings, excluding merger and
other nonrecurring charges 5,869 7,010 5,866
Amortization of core deposit
premium 205 209 77
Net interest rate swap (profits)
losses - - -
Cash operating earnings* $6,074 $7,219 $5,943
Operating Ratios
Return on average assets(2),(3)
Using GAAP earnings 0.99 % 1.07 % 1.13 %
Using cash operating
earnings* on average
tangible assets 1.05 1.23 1.16
Return on average
shareholders' equity (2),(3)
Using GAAP earnings 11.03 12.43 14.98
Using cash operating
earnings* on average
tangible equity 15.64 19.39 19.25
Net interest margin(1),(2) 4.22 4.29 4.16
Average equity to average
assets 8.98 8.58 7.52
Credit Analysis
Net charge-offs (recoveries) $23 $(76) $(80)
Net charge-offs (recoveries)
to average loans 0.01 % (0.02)% (0.02)%
Loan loss provision $475 $280 $280
Allowance to loans at end of
period 0.77 % 0.76 % 0.70 %
Nonperforming assets $10,437 $588 $240
Nonperforming assets to loans
and other real estate owned
at end of period 0.63 % 0.04 % 0.02 %
Nonaccrual loans and accruing
loans 90 days or more past
due to loans outstanding
at end of period 0.71 0.03 0.02
Per Share Common Stock
Net income diluted (GAAP) $0.31 $0.34 $0.34
Merger and other nonrecurring
charges - 0.03 -
Earnings, excluding merger
and other nonrecurring
charges 0.31 0.37 0.34
Amortization of core deposit
premium 0.01 0.01 -
Net interest rate swap
(profit) losses - - -
Cash operating earnings*
diluted $0.32 $0.38 $0.34
Net income basic (GAAP) $0.31 $0.34 $0.35
Cash dividends declared 0.15 0.15 0.15
Book value per share 10.99 10.70 9.09
Average Balances
Total assets $2,350,862 $2,419,683 $2,112,876
Less: Intangible assets 56,945 58,252 33,604
Total average tangible
assets $2,293,917 $2,361,431 $2,079,272
Total equity $211,024 $207,555 $158,787
Less: Intangible assets 56,945 58,252 33,604
Total average tangible equity $154,079 $149,303 $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 one-time 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 (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Quarters
(Dollars in thousands, except per 2005 Last 12
share data) Fourth Months
Net income (GAAP) $5,833 $24,002
Merger and other nonrecurring charges - 576
Earnings, excluding merger and other
nonrecurring charges 5,833 24,578
Amortization of core deposit premium 77 568
Net interest rate swap (profits)
losses - -
Cash operating earnings* $5,910 $25,146
Operating Ratios
Return on average assets (2),(3)
Using GAAP earnings 1.10 % 1.07 %
Using cash operating earnings*
on average tangible assets 1.13 1.14
Return on average shareholders'
equity (2),(3)
Using GAAP earnings 14.96 13.11
Using cash operating earnings*
on average tangible equity 19.48 18.32
Net interest margin (1),(2) 4.04 4.18
Average equity to average assets 7.35 8.15
Credit Analysis
Net charge-offs (recoveries) $(32) $(165)
Net charge-offs (recoveries) to
average loans (0.01)% (0.01)%
Loan loss provision $330 $1,365
Allowance to loans at end of
period 0.70 %
Nonperforming assets $372
Nonperforming assets to loans and
other real estate owned at end of
period 0.03 %
Nonaccrual loans and accruing
loans 90 days or more past due to loans
outstanding at end of period 0.06
Per Share Common Stock
Net income diluted (GAAP) $0.34 $1.33
Merger and other nonrecurring charges - 0.03
Earnings, excluding merger and
other nonrecurring charges 0.34 1.36
Amortization of core deposit premium - 0.02
Net interest rate swap (profit) losses - -
Cash operating earnings* diluted $0.34 $1.38
Net income basic (GAAP) $0.35 $1.35
Cash dividends declared 0.15 0.60
Book value per share 8.94
Average Balances
Total assets $2,103,978
Less: Intangible assets 34,337
Total average tangible assets $2,069,641
Total equity $154,681
Less: Intangible assets 34,337
Total average tangible equity $120,344
(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 one-time 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 (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
(Dollars in thousands)
Sept. 30, Dec. 31, Sept. 30,
SECURITIES 2006 2005 2005
U.S. Treasury and U.S. Government
Agencies $103,219 $71,189 $67,628
Mortgage-backed 238,389 319,906 335,876
Obligations of states and
political subdivisions 2,066 - -
Other securities 2,297 1,857 1,273
Securities Held for Sale 345,971 392,952 404,777
U.S. Treasury and U.S. Government
Agencies - 5,000 4,999
Mortgage-backed 130,567 143,877 151,174
Obligations of states and
political subdivisions 6,630 1,195 1,196
Securities Held for Investment 137,197 150,072 157,369
Total Securities $483,168 $543,024 $562,146
Sept. 30, Dec. 31, Sept. 30,
LOANS 2006 2005 2005
Construction and land development $542,601 $427,216 $417,249
Real estate mortgage 911,630 680,877 626,794
Installment loans to individuals 83,235 82,942 87,458
Commercial and financial 117,738 98,653 86,073
Other loans 857 307 345
Total Loans $1,656,061 $1,289,995 $1,217,919
AVERAGE BALANCES, YIELDS AND RATES (1) (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2006
Third Quarter Second Quarter
Average Yield/ Average Yield/
(Dollars in thousands) Balance Rate Balance Rate
Assets
Earning assets:
Securities:
Taxable $493,810 4.35 % $567,572 4.31 %
Nontaxable 8,654 6.61 8,666 6.42
Total Securities 502,464 4.39 576,238 4.34
Federal funds sold and other
investments 38,832 5.32 86,260 4.73
Loans, net 1,634,263 7.47 1,586,597 7.33
Total Earning Assets 2,175,559 6.71 2,249,095 6.47
Allowance for loan losses (12,363) (12,059)
Cash and due from banks 74,680 74,788
Premises and equipment 37,162 32,771
Other assets 75,824 75,088
$2,350,862 $2,419,683
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
NOW $208,948 1.72 % $219,871 1.54 %
Savings deposits 149,323 0.69 166,563 0.74
Money market accounts 603,133 2.76 608,601 2.43
Time deposits 552,589 4.23 533,577 3.91
Federal funds purchased and
other short term borrowings 107,401 4.42 105,140 4.12
Other borrowings 67,572 7.14 67,533 6.68
Total Interest-Bearing
Liabilities 1,688,966 3.21 1,701,285 2.89
Demand deposits (noninterest-
bearing) 439,379 496,308
Other liabilities 11,493 14,535
Total Liabilities 2,139,838 2,212,128
Shareholders' equity 211,024 207,555
$2,350,862 $2,419,683
Interest expense as a % of
earning assets 2.49 % 2.18 %
Net interest income as a % of
earning assets 4.22 4.29
(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.
AVERAGE BALANCES, YIELDS AND RATES (1) (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2005
Third Quarter
Average Yield/
(Dollars in thousands) Balance Rate
Assets
Earning assets:
Securities:
Taxable $603,477 3.71 %
Nontaxable 1,196 7.36
Total Securities 604,673 3.71
Federal funds sold and other
investments 107,000 3.33
Loans, net 1,175,992 6.61
Total Earning Assets 1,887,665 5.48
Allowance for loan losses (8,490)
Cash and due from banks 67,683
Premises and equipment 21,397
Other assets 49,266
$2,017,521
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
NOW $125,211 0.67 %
Savings deposits 163,675 0.51
Money market accounts 585,395 1.45
Time deposits 406,813 3.07
Federal funds purchased and other
short term borrowings 79,167 2.72
Other borrowings 64,386 4.57
Total Interest-Bearing Liabilities 1,424,647 1.95
Demand deposits (noninterest-bearing) 431,476
Other liabilities 10,099
Total Liabilities 1,866,222
Shareholders' equity 151,299
$2,017,521
Interest expense as a % of earning
assets 1.47 %
Net interest income as a % of earning
assets 4.01
(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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