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CST: 17/08/2019 18:20:45   

Seacoast Reports First Quarter 2019 Results

114 Days ago

Net Income Increased 26% Year-Over-Year to $22.7 Million

Net Interest Margin Expands to 4.02%

27% Annualized Growth in Noninterest Bearing Demand Deposits

STUART, Fla., April 25, 2019 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida (“Seacoast” or “the Company”) (NASDAQ: SBCF) today reported first quarter 2019 net income of $22.7 million, or $0.44 per share, up 26% or $4.7 million year-over-year. Seacoast reported first quarter 2019 adjusted net income1 of $24.2 million, or $0.47 per share, an increase of $4.9 million compared to the first quarter of 2018. First quarter 2019 results reflect the acquisition of First Green Bancorp, Inc., which closed on October 19, 2018.

For the first quarter of 2019, return on average tangible assets was 1.48%, return on average tangible shareholders’ equity was 14.9%, and the efficiency ratio was 56.6%, compared to 1.05%, 10.9% and 65.8%, respectively, in the prior quarter and 1.34%, 14.4%, and 57.8%, respectively, in the first quarter of 2018. Adjusted return on average tangible assets1 was 1.50%, adjusted return on average tangible shareholders’ equity1 was 15.1%, and the adjusted efficiency ratio1 was 55.8%, compared to 1.49%, 15.4%, and 54.2%, respectively, in the prior quarter, and 1.38%, 14.8%, and 57.1%, respectively, in the first quarter of 2018.

Dennis S. Hudson, III, Seacoast’s Chairman and CEO, said, “Seacoast’s balanced growth strategy, combining organic growth with value-creating acquisitions, continues to benefit our shareholders. We had an outstanding quarter of customer acquisition and deposit growth, with pipelines increasing in all loan categories, reflecting our strong fundamentals and position in attractive markets. The underlying strength of our customer franchise and the value of our unique combination of customer analytics, marketing automation, and experienced bankers in growing urban markets situates us well to deliver sustainable, profitable growth.”

Charles M. Shaffer, Seacoast’s Chief Financial Officer, said, “Our first quarter 2019 results demonstrate a continued focus on strong financial performance, disciplined credit underwriting, and increasing levels of liquidity. We continue to build a balance sheet that is supported by a robust customer franchise, with an ending loan to deposit ratio of 86%, providing ample room for expansion of loans which reinforces our net interest margin. We will also take proactive additional expense reduction measures during the second quarter of 2019 that we expect will result in an annual pre-tax expense reduction of approximately $10 million. These initiatives, our quarter-end tangible common equity ratio of 10.2%, increasing levels of liquidity and a healthy balance sheet support our ability to deploy capital for continued organic growth and disciplined opportunistic acquisitions."

 First Quarter 2019 Financial Highlights

Income Statement

  • Net income was $22.7 million, or $0.44 per diluted share, compared to $16.0 million or $0.31 for the prior quarter and $18.0 million or $0.38 for the first quarter of 2018. Adjusted net income1 was $24.2 million, or $0.47 per diluted share, compared to $23.9 million or $0.47 for the prior quarter and $19.3 million or $0.40 for the first quarter of 2018.
  • Net revenues were $73.6 million, an increase of $0.9 million or 1% compared to the prior quarter, and an increase of $11.6 million or 19% compared to the first quarter of 2018. Adjusted revenues1 were $73.6 million, an increase of $0.8 million, or 1%, from the prior quarter and an increase of $11.5 million, or 18%, from the first quarter of 2018.
  • Net interest income totaled $60.8 million, an increase of $0.8 million or 1% from the prior quarter and an increase of $11.0 million or 22% from the first quarter of 2018. The increase quarter over quarter was despite a flattening yield curve and two fewer days in the quarter.
  • Net interest margin was 4.02% in the first quarter of 2019, 4.00% in the fourth quarter of 2018 and 3.80% in the first quarter of 2018. Quarter over quarter, the yield on loans expanded 10 basis points, the yield on securities contracted 4 basis points, and the cost of deposits increased 13 basis points. The impact on net interest margin from accretion of purchase discounts on acquired loans was 26 basis points in the first quarter of 2019, 1 basis point below the prior quarter. The net interest margin continues to benefit from positive remixing of earning assets as well as actions taken to reduce reliance on Federal Home Loan Bank advances and migrate funding towards lower rate deposit balances.
  • Noninterest income totaled $12.8 million, an increase of $0.1 million or 1% compared to the prior quarter and an increase of $0.5 million or 4% from the first quarter of 2018. Sequentially, service charges on deposits declined by $0.3 million, the result of fewer business days in the first quarter, which was offset by mortgage banking fees which increased $0.3 million, the result of a successful introduction of new saleable residential mortgage products and a focus on generating saleable volume. SBA and marine-related fees improved modestly, the result of higher volumes in both units. Interchange income increased $0.2 million, sequentially, while wealth-related fees were down modestly, the result of lower equity valuations. Other income declined primarily due to the prior quarter benefiting from a $0.3 million bank owned life insurance ("BOLI") payout. The decline in BOLI-related income was the result of the cancellation of low yielding policies acquired in the First Green acquisition. Finally, securities losses were lower by $0.4 million sequentially.
  • The provision for loan losses was $1.4 million compared to $2.3 million in the prior quarter and $1.1 million in the first quarter of 2018.
  • Noninterest expense was $43.1 million, a decrease of $6.4 million or 13% compared to the prior quarter and an increase of $5.9 million or 16% from the first quarter of 2018. During the fourth quarter of 2018, the Company integrated the operations of First Green, recording $8.0 million in merger related charges. Noninterest expense in the first quarter included:
    • Lower salaries and wage expenses were offset by increases in employee benefits associated with higher seasonal payroll taxes and 401(k) plan contributions, typical of the first quarter.
    • We hired 10 business bankers in Fort Lauderdale and Tampa, augmenting the 10 business bankers hired in the fourth quarter.
    • As required by existing accounting guidance, we defer the net costs of loan originations. Such deferrals were lower quarter over quarter due to lower loan production, resulting in higher noninterest expense.
    • Two previously ongoing projects in risk management and lending operations were accelerated that will support the scaling of our business, resulting in higher professional fees in the quarter. We launched our small business direct loan origination platform ahead of schedule and will launch our digital commercial origination platform in June.
    • The quarter included merger related charges of $0.3 million due to the First Green acquisition and one banking center consolidation charge totaling $0.2 million.
    • Looking forward, during the second quarter of 2019, our continued focus on efficiency and streamlining operations will result in a reduction of approximately 50 full time equivalent employees. While the Company will incur severance charges of approximately $1.5 million, this in combination with other expense initiatives, including two more banking center closures, will result in approximately a $10 million annual pre-tax expense reduction.
  • Seacoast recorded $6.4 million in income tax expense in the first quarter of 2019, compared to $4.9 million in the prior quarter and $5.8 million in the first quarter of 2018. Tax benefits related to stock-based compensation were $0.6 million in the first quarter of 2019 and $0.4 million in the fourth quarter of 2018. Taxes in the fourth quarter of 2018 also included $0.5 million in additional expenses associated with the redemption of First Green's BOLI policies, which was removed from the presentation of adjusted results.
  • Adjusted revenues1 increased 18% compared to prior year while adjusted noninterest expense1 increased 15%, generating 3% operating leverage.
  • The efficiency ratio was 56.6% compared to 65.8% in the prior quarter and 57.8% in the first quarter of 2018. The adjusted efficiency ratio1 was 55.8% compared to 54.2% in the prior quarter and 57.1% in the first quarter of 2018. The increase quarter over quarter in the adjusted efficiency ratio, was primarily the result of a return of seasonal 401(k) and payroll tax expenses.

Balance Sheet

  • At March 31, 2019, the Company had total assets of $6.8 billion and total shareholders' equity of $896.4 million.  Book value per share was $17.44 and tangible book value per share was $12.98, compared to $16.83 and $12.33, respectively, at December 31, 2018 and $14.94 and $11.39, respectively, at March 31, 2018. Year-over-year, tangible book value per share increased 14%.
  • Debt securities totaled $1.2 billion at March 31, 2019, a decrease of $50.7 million compared to the prior quarter and a decrease of $210.6 million from March 31, 2018. The decrease included the sale of $35.0 million of certain low yielding securities, which resulted in a loss of $0.1 million in the first quarter of 2019. In addition, in connection with the adoption of new accounting guidance in January 2019, the Company elected to transfer securities with an aggregate amortized cost basis of $53.5 million and fair value of $52.8 million from the held-to-maturity designation to available-for-sale.
  • Loans totaled $4.8 billion at March 31, 2019, an increase of $3.2 million compared to the prior quarter, and an increase of $931.3 million or 24% from March 31, 2018.
    • Consumer and small business originations for the first quarter of 2019 were $118.5 million, an increase of 4% compared to the fourth quarter of 2018 and an increase of 20% compared to the first quarter of 2018.
    • Commercial originations during the first quarter of 2019 were $109.1 million, a decrease of 32% compared to the fourth quarter of 2018 and 11% compared to the first of quarter 2018, largely a reflection of seasonal trends.
    • We continue to prudently manage commercial real estate exposure. Construction and land development and commercial real estate loans remain well below regulatory guidance at 57% and 216% of total risk based capital, respectively, down from 63% and 227%, respectively, in the fourth quarter of 2018.
    • Closed residential loans retained in the portfolio for the first quarter of 2019 were $49.6 million, down 32% from the fourth quarter of 2018 and down 37% from the first quarter of 2018. This is consistent with the Residential Lending team's emphasis on generating saleable volume.
  • Pipelines (loans in underwriting and approval or approved and not yet closed) remained strong, totaling $290.2 million.
    • Consumer and small business pipelines were $67.6 million, an increase of 26% sequentially and 34% compared to the prior year.
    • Commercial pipelines were $177.3 million, an increase of 8% sequentially and 44% compared to the prior year.
    • Residential pipelines were $45.3 million, an increase of 4% sequentially and a decrease of 36% compared to the prior year.
  • Total deposits were $5.6 billion as of March 31, 2019, an increase of $428.3 million, or 8%, sequentially and an increase of $886.0 million, or 19%, from the prior year.
    • Interest-bearing deposits (interest-bearing demand, savings and money market deposits) increased year-over-year $312.4 million, or 13%, to $2.8 billion, noninterest bearing demand deposits increased $187.7 million, or 13%, to $1.7 billion, and CDs increased $385.9 million, or 52%, to $1.1 billion.
    • Total deposits grew 16% on an annualized basis during the quarter, excluding the favorable impact of $76 million of customer sweep repurchase agreements migrating to interest-bearing deposits and the acquisition of $147 million of brokered CDs.
    • During the quarter, noninterest bearing demand deposits grew 27% on an annualized basis.
    • Overall cost of deposits increased to 67 basis points, due in part to a strategic shift in funding from FHLB advances to brokered deposits. This shift impacted the cost of deposits by 3 basis points, but reduced the overall cost of funding.
  • First quarter return on average tangible assets (ROTA) was 1.48%, compared to 1.05% in the prior quarter and 1.34% in the first quarter of 2018. Adjusted ROTA1 was 1.50% compared to 1.49% in the prior quarter and 1.38% in the first quarter of 2018.

Capital

  • First quarter return on average tangible common equity (ROTCE) was 14.86%, compared to 10.94% in the prior quarter and 14.41% in the first quarter of 2018. Adjusted ROTCE1 was 15.11% compared to 15.44% in the prior quarter and 14.82% in the first quarter of 2018.
  • The common equity tier 1 capital ratio (CET1) was 14.3%, total capital ratio was 15.0% and the tier 1 leverage ratio was 11.2% at March 31, 2019.
  • Tangible common equity to tangible assets was 10.18% at March 31, 2019, compared to 9.72% at December 31, 2018 and 9.33% at March 31, 2018.

Asset Quality

  • Nonperforming loans to total loans outstanding was 0.46% at March 31, 2019, 0.55% at December 31, 2018, and 0.50% at March 31, 2018.
  • Nonperforming assets to total assets was 0.51% at March 31, 2019, 0.58% at December 31, 2018 and 0.50% at March 31, 2018. Nonperforming assets decreased $4.9 million in the first quarter of 2019, attributed primarily to the payoff of a $3.0 million acquired residential real estate loan.
  • The ratio of allowance for loan losses to total loans was 0.68% at March 31, 2019, 0.67% at December 31, 2018, and 0.72% at March 31, 2018. The ratio of allowance for loan losses to non-acquired loans was 0.89% at March 31, 2019, 0.89% at December 31, 2018, and 0.90% at March 31, 2018.
  • Net charge-offs were $1.0 million or 0.08% of average loans for the first quarter of 2019 compared to $3.7 million in the prior quarter.
               
FINANCIAL HIGHLIGHTS       (Unaudited)      
(Amounts in thousands except per share data)                
  Quarterly Trends
                   
  1Q'19   4Q'18   3Q'18   2Q'18   1Q'18
Selected Balance Sheet Data:                  
Total Assets $ 6,783,389     $ 6,747,659     $ 5,930,934     $ 5,922,681     $ 5,903,101  
Gross Loans 4,828,441     4,825,214     4,059,323     3,974,016     3,897,125  
Total Deposits 5,605,578     5,177,240     4,643,510     4,697,440     4,719,543  
                   
Performance Measures:                  
Net Income $ 22,705     $ 15,962     $ 16,322     $ 16,964     $ 18,027  
Net Interest Margin 4.02 %   4.00 %   3.82 %   3.77 %   3.80 %
Average Diluted Shares Outstanding 52,039     51,237     48,029     47,974     47,688  
Diluted Earnings Per Share (EPS) $ 0.44     $ 0.31     $ 0.34     $ 0.35     $ 0.38  
Return on (annualized):                  
Average Assets (ROA) 1.36 %   0.96 %   1.10 %   1.16 %   1.25 %
Average Return on Tangible Assets (ROTA) 1.48     1.05     1.18     1.24     1.34  
Average Tangible Common Equity (ROTCE) 14.86     10.94     12.04     13.08     14.41  
Efficiency Ratio 56.55     65.76     57.04     58.41     57.80  
                   
Adjusted Operating Measures1:                  
Adjusted Net Income $ 24,205     $ 23,893     $ 17,626     $ 18,268     $ 19,298  
Adjusted Diluted EPS 0.47     0.47     0.37     0.38     0.40  
Adjusted ROTA 1.50 %   1.49 %   1.22 %   1.28 %   1.38 %
Adjusted ROTCE 15.11     15.44     12.43     13.49     14.82  
Adjusted Efficiency Ratio 55.81     54.19     56.29     57.31     57.05  
Adjusted Noninterest Expenses as a                  
Percent of Average Tangible Assets 2.55     2.46     2.48     2.57     2.55  
                   
Other Data:                  
Market capitalization2 $ 1,354,759     $ 1,336,415     $ 1,380,275     $ 1,489,411     $ 1,243,644  
Full-time equivalent employees 902     902     835     826     814  
Number of ATMs 84     87     86     87     86  
Full service banking offices 50     51     49     49     49  
Registered online users 102,274     99,415     94,400     92,107     91,636  
Registered mobile devices 87,844     83,151     73,300     69,038     65,336  
 
1 Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures”
2 Common shares outstanding multiplied by closing bid price on last day of each period

Vision 2020

We remain confident in our ability to achieve our Vision 2020 targets announced in 2017.

    Vision 2020 Targets  
  Return on Tangible Assets 1.30% +  
  Return on Tangible Common Equity 16% +  
  Efficiency Ratio Below 50%  

First Quarter Operating Highlights

Modernizing How We Sell

  • In the first quarter, we completed a pilot program for automated fulfillment of small business loan products. The pilot was limited to a select group of products, and offers auto-decisioning and digitized onboarding. Once fully implemented, this technology will significantly reduce the cost to originate small business loans to current customers, while maintaining our strict credit underwriting culture.

Lowering Our Cost to Serve

  • We consolidated one banking center location in the first quarter of 2019 in alignment with our Vision 2020 objective of reducing our footprint to meet the evolving needs of our customers. We expect a six-month payback period, and recorded $0.2 million in associated expenses. We have two additional banking center consolidations planned in the second quarter of 2019. We expect negligible customer impact given the proximity to other banking centers and increased usage of digital channels by these customers.
  • At March 31, 2019, average deposits per banking center exceeded $112 million, up from $96 million at March 31, 2018.
  • During the second quarter of 2019, our continued focus on efficiency and streamlining operations will result in a reduction of approximately 50 full time equivalent employees. While the Company will incur severance charges of approximately $1.5 million, this in combination with other expense initiatives, including two more banking center closures, will result in approximately a $10 million annual pre-tax expense reduction.

Driving Improvements in How Our Business Operates

  • Late in 2018, we launched a large-scale initiative to implement a fully digital loan origination platform across all business banking units. This follows the successful rollout of our fully digital mortgage banking origination platform. This investment should provide financial returns through a significant improvement in efficiency and banker productivity in 2020 and beyond.

Scaling and Evolving Our Culture

  • We continue to invest in business bankers. In the first quarter of 2019 we on-boarded 10 new business bankers in order to fully support the strong markets we serve and to advance our growth and operating leverage objectives. We have a robust pipeline of talent as we enter the second quarter of 2019 and will continue to opportunistically add top-tier bankers in both the Fort Lauderdale and Tampa markets.
  • In the first quarter of 2019, Seacoast Bank’s 401(k) plan was recognized as a Best in Class 401(k) Plan for 2019 by PLANSPONSOR magazine. Associate participation in the 401(k) plan and Seacoast's contribution match differentiates us from industry peers.

1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures”

OTHER INFORMATION

Conference Call Information
Seacoast will host a conference call on April 26, 2019 at 10:00 a.m. (Eastern Time) to discuss the earnings results and business trends. Investors may call in (toll-free) by dialing (888) 424-8151 (passcode: 6617 843; host: Dennis S. Hudson). Charts will be used during the conference call and may be accessed at Seacoast's website at www.SeacoastBanking.com by selecting "Presentations" under the heading "News/Events" A replay of the call will be available for one month, beginning late afternoon of April 26, 2019 by dialing (888) 843-7419 (domestic) and using passcode: 6617 843#.

Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast's website at www.SeacoastBanking.com. The link is located in the subsection "Presentations" under the heading "Investor Services." Beginning the afternoon of April 26, 2019, an archived version of the webcast can be accessed from this same subsection of the website. The archived webcast will be available for one year.

About Seacoast Banking Corporation of Florida (NASDAQ: SBCF)
Seacoast Banking Corporation of Florida is one of the largest community banks headquartered in Florida with approximately $6.8 billion in assets and $5.6 billion in deposits as of March 31, 2019. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, and 50 traditional branches of its locally-branded wholly-owned subsidiary bank, Seacoast Bank. Offices stretch from Fort Lauderdale, Boca Raton and West Palm Beach north through the Daytona Beach area, into Orlando and Central Florida and the adjacent Tampa market, and west to Okeechobee and surrounding counties. More information about the Company is available at www.SeacoastBanking.com.

Cautionary Notice Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning, and protections, 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, tax law changes, and for integration of banks that we have acquired, or expect to acquire, as well as statements with respect to Seacoast's objectives, strategic plans, including Vision 2020, 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, assumptions, estimates and intentions about future performance 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.

All statements other than statements of historical fact could be 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”, “plan”, “point to”, “project”, “could”, “intend”, “target” 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, including interest rate policies of the Board of Governors of the Federal Reserve, as well as legislative, tax and regulatory changes; changes in accounting policies, rules and practices; the risks of changes in interest rates on the level and composition of deposits, loan demand, liquidity and the values of loan collateral, securities, and interest sensitive assets and liabilities; interest rate risks, sensitivities and the shape of the yield curve; changes in borrower credit risks and payment behaviors; changes in the availability and cost of credit and capital in the financial markets; changes in the prices, values and sales volumes of residential and commercial real estate; our ability to comply with any regulatory requirements; the effects of problems encountered by other financial institutions that adversely affect us or the banking industry; our concentration in commercial real estate loans; the failure of assumptions and estimates, as well as differences in, and changes to, economic, market and credit conditions; the impact on the valuation of our investments due to market volatility or counterparty payment risk; statutory and regulatory dividends restrictions; increases in regulatory capital requirements for banking organizations generally; the risks of mergers, acquisitions and divestitures, including our ability to continue to identify acquisition targets and successfully acquire desirable financial institutions; changes in technology or products that may be more difficult, costly, or less effective than anticipated; our ability to identify and address increased cybersecurity risks; inability of our risk management framework to manage risks associated with our business; dependence on key suppliers or vendors to obtain equipment or services for our business on acceptable terms; reduction in or the termination of our ability to use the mobile-based platform that is critical to our business growth strategy; the effects of war or other conflicts, acts of terrorism, natural disasters or other catastrophic events that may affect general economic conditions; unexpected outcomes of, and the costs associated with, existing or new litigation involving us; our ability to maintain adequate internal controls over financial reporting; potential claims, damages, penalties, fines and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions; the risks that our deferred tax assets could be reduced if estimates of future taxable income from our operations and tax planning strategies are less than currently estimated and sales of our capital stock could trigger a reduction in the amount of net operating loss carryforwards that we may be able to utilize for income tax purposes; 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.

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, 2018, under “Special Cautionary Notice Regarding Forward-looking Statements” and “Risk Factors”, and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at www.sec.gov.

Charles M. Shaffer
Executive Vice President
Chief Financial Officer
(772) 221-7003
Chuck.Shaffer@seacoastbank.com

 
FINANCIAL  HIGHLIGHTS (Unaudited)
SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES    
   
  Quarterly Trends
                   
(Amounts in thousands, except ratios and per share data) 1Q'19   4Q'18   3Q'18   2Q'18   1Q'18
                   
Summary of Earnings                  
Net income $ 22,705     $ 15,962     $ 16,322     $ 16,964     $ 18,027  
Adjusted net income1 24,205     23,893     17,626     18,268     19,298  
Net interest income2 60,861     60,100     51,709     50,294     49,853  
Net interest margin2,3 4.02 %   4.00 %   3.82 %   3.77 %   3.80 %
                   
Performance Ratios                  
Return on average assets-GAAP basis3 1.36 %   0.96 %   1.10 %   1.16 %   1.25 %
Return on average tangible assets-GAAP basis3,4 1.48     1.05     1.18     1.24     1.34  
Adjusted return on average tangible assets1,3,4 1.50     1.49     1.22     1.28     1.38  
                   
Return on average shareholders' equity-GAAP basis3 10.47     7.65     8.89     9.59     10.52  
Return on average tangible common equity-GAAP basis3,4 14.86     10.94     12.04     13.08     14.41  
Adjusted return on average tangible common equity1,3,4 15.11     15.44     12.43     13.49     14.82  
Efficiency ratio5 56.55     65.76     57.04     58.41     57.80  
Adjusted efficiency ratio1 55.81     54.19     56.29     57.31     57.05  
Noninterest income to total revenue 17.45     17.97     19.31     20.28     19.95  
Tangible common equity to tangible assets4 10.18     9.72     9.85     9.56     9.33  
Average loan-to-deposit ratio 90.55     89.14     86.25     83.51     84.10  
End of period loan-to-deposit ratio 86.38     93.43     87.77     84.91     83.02  
                   
Per Share Data                  
Net income diluted-GAAP basis $ 0.44     $ 0.31     $ 0.34     $ 0.35     $ 0.38  
Net income basic-GAAP basis 0.44     0.32     0.35     0.36     0.38  
Adjusted earnings1 0.47     0.47     0.37     0.38     0.40  
                   
Book value per share common 17.44     16.83     15.50     15.18     14.94  
Tangible book value per share 12.98     12.33     12.01     11.67     11.39  
Cash dividends declared                  
                   
                   
1 Non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures.”
2 Calculated on a fully taxable equivalent basis using amortized cost.
3 These ratios are stated on an annualized basis and are not necessarily indicative of future periods.
4 The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.
5 Defined as (noninterest expense less amortization of intangibles and gains, losses, and expenses on foreclosed properties) divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains).
 


CONDENSED CONSOLIDATED STATEMENTS OF INCOME   (Unaudited)    
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES        
   
  Quarterly Trends
                   
(Amounts in thousands, except per share data) 1Q'19   4Q'18   3Q'18   2Q'18   1Q'18
                   
Interest on securities:                  
Taxable $ 9,119     $ 9,528     $ 9,582     $ 9,389     $ 9,361  
Nontaxable 151     200     225     216     243  
Interest and fees on loans 62,287     59,495     48,713     46,519     45,257  
Interest on federal funds sold and other investments 918     835     634     585     616  
Total Interest Income 72,475     70,058     59,154     56,709     55,477  
                   
Interest on deposits 3,873     3,140     2,097     1,988     1,538  
Interest on time certificates 4,959     3,901     2,975     2,629     2,179  
Interest on borrowed money 2,869     3,033     2,520     1,885     1,998  
Total Interest Expense 11,701     10,074     7,592     6,502     5,715  
                   
Net Interest Income 60,774     59,984     51,562     50,207     49,762  
Provision for loan losses 1,397     2,342     5,774     2,529     1,085  
Net Interest Income After Provision for Loan Losses 59,377     57,642     45,788     47,678     48,677  
                   
Noninterest income:                  
Service charges on deposit accounts 2,697     3,019     2,833     2,674     2,672  
Trust fees 1,017     1,040     1,083     1,039     1,021  
Mortgage banking fees 1,115     809     1,135     1,336     1,402  
Brokerage commissions and fees 436     468     444     461     359  
Marine finance fees 362     185     194     446     573  
Interchange income 3,401     3,198     3,119     3,076     2,942  
BOLI income 915     1,091     1,078     1,066     1,056  
SBA gains 636     519     473     748     734  
Other 2,266     2,810     1,980     1,923     1,639  
  12,845     13,139     12,339     12,769     12,398  
Securities losses, net (9 )   (425 )   (48 )   (48 )   (102 )
Total Noninterest Income 12,836     12,714     12,291     12,721     12,296  
                   
                   
Noninterest expenses:                  
Salaries and wages 18,506     22,172     17,129     16,429     15,381  
Employee benefits 4,206     3,625     3,205     3,034     3,081  
Outsourced data processing costs 3,845     5,809     3,493     3,393     3,679  
Telephone / data lines 811     602     624     643     612  
Occupancy 3,807     3,747     3,214     3,316     3,117  
Furniture and equipment 1,757     2,452     1,367     1,468     1,457  
Marketing 1,132     1,350     1,139     1,344     1,252  
Legal and professional fees 2,847     3,668     2,019     2,301     1,973  
FDIC assessments 488     571     431     595     598  
Amortization of intangibles 1,458     1,303     1,004     1,004     989  
Foreclosed property expense and net (gain)/loss on sale (40 )       (136 )   405     192  
Other 4,282     4,165     3,910     4,314     4,833  
Total Noninterest Expense 43,099     49,464     37,399     38,246     37,164  
                   
Income Before Income Taxes 29,114     20,892     20,680     22,153     23,809  
Income taxes 6,409     4,930     4,358     5,189     5,782  
                   
Net Income $ 22,705     $ 15,962     $ 16,322     $ 16,964     $ 18,027  
                   
Per share of common stock:                  
                   
Net income diluted $ 0.44     $ 0.31     $ 0.34     $ 0.35     $ 0.38  
Net income basic 0.44     0.32     0.35     0.36     0.38  
Cash dividends declared                  
                   
Average diluted shares outstanding 52,039     51,237     48,029     47,974     47,688  
Average basic shares outstanding 51,359     50,523     47,205     47,165     46,952  
                   


CONDENSED CONSOLIDATED BALANCE SHEETS   (Unaudited)    
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES          
     
    March 31,   December 31,   September 30,   June 30,   March 31,
(Amounts in thousands)   2019   2018   2018   2018   2018
                     
Assets                    
Cash and due from banks   $ 98,270     $ 92,242     $ 101,920     $ 123,927     $ 129,065  
Interest bearing deposits with other banks   105,741     23,709     3,174     7,594     6,794  
Total Cash and Cash Equivalents   204,011     115,951     105,094     131,521     135,859  
                     
Time deposits with other banks   8,174     8,243     9,813     10,562     12,553  
                     
Debt Securities:                    
Available for sale (at fair value)   877,549     865,831     923,206     954,906     982,958  
Held to maturity (at amortized cost)   295,485     357,949     367,387     382,137     400,647  
Total Debt Securities   1,173,034     1,223,780     1,290,593     1,337,043     1,383,605  
                     
Loans held for sale   13,900     11,873     16,172     14,707     20,887  
                     
Loans   4,828,441     4,825,214     4,059,323     3,974,016     3,897,125  
Less: Allowance for loan losses   (32,822 )   (32,423 )   (33,865 )   (28,924 )   (28,118 )
Net Loans   4,795,619     4,792,791     4,025,458     3,945,092     3,869,007  
                     
Bank premises and equipment, net   70,412     71,024     63,531     63,991     64,577  
Other real estate owned   11,921     12,802     4,715     8,417     10,288  
Goodwill   205,260     204,753     148,555     148,555     148,555  
Other intangible assets, net   23,959     25,977     16,508     17,319     18,246  
Bank owned life insurance   124,306     123,394     122,561     121,602     120,654  
Net deferred tax assets   24,647     28,954     25,822     26,021     24,427  
Other assets   128,146     128,117     102,112     97,851     94,443  
Total Assets   $ 6,783,389     $ 6,747,659     $ 5,930,934     $ 5,922,681     $ 5,903,101  
                     
Liabilities and Shareholders' Equity                    
Liabilities                    
Deposits                    
Noninterest demand   $ 1,676,009     $ 1,569,602     $ 1,488,689     $ 1,463,652     $ 1,488,261  
Interest-bearing demand   1,100,477     1,014,032     912,891     976,281     1,015,054  
Savings   508,320     493,807     451,958     444,736     437,878  
Money market   1,192,070     1,173,950     1,036,940     1,023,170     1,035,531  
Other time certificates   539,202     513,312     411,208     413,643     410,108  
Brokered time certificates   367,841     220,594     192,182     228,602     184,405  
Time certificates of more than $250,000   221,659     191,943     149,642     147,356     148,306  
Total Deposits   5,605,578     5,177,240     4,643,510     4,697,440     4,719,543  
                     
Securities sold under agreements to repurchase   148,005     214,323     189,035     200,050     173,249  
Federal Home Loan Bank borrowings   3,000     380,000     261,000     205,000     208,000  
Subordinated debt   70,874     70,804     70,734     70,664     70,591  
Other liabilities   59,508     41,025     33,824     33,364     29,857  
Total Liabilities   5,886,965     5,883,392     5,198,103     5,206,518     5,201,240  
                     
Shareholders' Equity                    
Common stock   5,141     5,136     4,727     4,716     4,698  
Additional paid in capital   780,680     778,501     668,711     665,885     663,727  
Retained earnings   119,779     97,074     81,112     64,790     47,825  
Treasury stock   (4,959 )   (3,384 )   (2,854 )   (2,884 )   (2,279 )
    900,641     877,327     751,696     732,507     713,971  
Accumulated other comprehensive loss, net   (4,217 )   (13,060 )   (18,865 )   (16,344 )   (12,110 )
Total Shareholders' Equity   896,424     864,267     732,831     716,163     701,861  
Total Liabilities & Shareholders' Equity   $ 6,783,389     $ 6,747,659     $ 5,930,934     $ 5,922,681     $ 5,903,101  
                     
Common shares outstanding   51,414     51,361     47,270     47,163     46,983  
                     


CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES                
   
   
                   
(Amounts in thousands) 1Q'19   4Q'18   3Q'18   2Q'18   1Q'18
                   
Credit Analysis                  
Net charge-offs (recoveries) - non-acquired loans $ 762     $ 3,693     $ 800     $ 1,715     $ 117  
Net charge-offs (recoveries) - acquired loans 201     56     (3 )   (25 )   (116 )
Total Net Charge-offs (Recoveries) 963     3,749     797     1,690     1  
                   
TDR valuation adjustments $ 35     $ 35     $ 36     $ 33     $ 88  
                   
Net charge-offs (recoveries) to average loans - non-acquired loans 0.06 %   0.32 %   0.08 %   0.17 %   0.01 %
Net charge-offs (recoveries) to average loans - acquired loans 0.02                 (0.01 )
Total Net Charge-offs (Recoveries) to Average Loans 0.08     0.32     0.08     0.17      
                   
Provision for loan losses - non-acquired loans $ 1,709     $ 2,343     $ 5,640     $ 2,591     $ 1,383  
Provision for (recapture of) loan losses - acquired loans (312 )   (1 )   134     (62 )   (298 )
Total Provision for Loan Losses $ 1,397     $ 2,342     $ 5,774     $ 2,529     $ 1,085  
                   
Allowance for loan losses - non-acquired loans $ 32,715     $ 31,803     $ 33,188     $ 28,384     $ 27,541  
Allowance for loan losses - acquired loans 107     620     677     540     577  
Total Allowance for Loan Losses $ 32,822     $ 32,423     $ 33,865     $ 28,924     $ 28,118  
                   
Non-acquired loans at end of period $ 3,667,221     $ 3,588,251     $ 3,383,571     $ 3,221,569     $ 3,063,618  
Purchased noncredit impaired loans at end of period 1,147,432     1,222,529     662,701     739,232     819,814  
Purchased credit impaired loans at end of period 13,788     14,434     13,051     13,215     13,693  
Total Loans $ 4,828,441     $ 4,825,214     $ 4,059,323     $ 3,974,016     $ 3,897,125  
                   
Non-acquired loans allowance for loan losses to non-acquired loans at end of period 0.89 %   0.89 %   0.98 %   0.88 %   0.90 %
Total allowance for loan losses to total loans at end of period 0.68     0.67     0.83     0.73     0.72  
Purchase discount on acquired loans at end of period 3.80     3.86     2.25     2.31     2.32  
                   
End of Period                  
Nonperforming loans - non-acquired $ 15,423     $ 15,783     $ 18,998     $ 19,578     $ 12,628  
Nonperforming loans - acquired 6,990     10,693     7,142     6,624     6,711  
Other real estate owned - non-acquired 831     386     418     354     2,246  
Other real estate owned - acquired 1,725     3,020     1,203     4,969     4,969  
Bank branches closed included in other real estate owned 9,365     9,396     3,094     3,094     3,073  
Total Nonperforming Assets $ 34,334     $ 39,278     $ 30,855     $ 34,619     $ 29,627  
                   
Restructured loans (accruing) $ 14,857     $ 13,346     $ 13,797     $ 14,241     $ 14,777  
                   
Nonperforming loans to loans at end of period - non-acquired 0.42 %   0.44 %   0.56 %   0.61 %   0.41 %
Nonperforming loans to loans at end of period - acquired 0.60     0.86     1.06     0.88     0.81  
Total Nonperforming Loans to Loans at End of Period 0.46     0.55     0.64     0.66     0.50  
                   
Nonperforming assets to total assets - non-acquired 0.38 %   0.38 %   0.38 %   0.39 %   0.30 %
Nonperforming assets to total assets - acquired 0.13     0.20     0.14     0.19     0.20  
Total Nonperforming Assets to Total Assets 0.51     0.58     0.52     0.58     0.50  
                   
  March 31,   December 31,   September 30,   June 30,   March 31,
Loans 2019   2018   2018   2018   2018
                   
Construction and land development $ 417,565     $ 443,568     $ 376,257     $ 359,070     $ 374,244  
Commercial real estate - owner occupied 989,234     970,181     829,368     812,306     796,898  
Commercial real estate - non-owner occupied 1,173,183     1,161,885     897,331     888,989     848,341  
Residential real estate 1,329,166     1,324,377     1,152,640     1,103,946     1,065,152  
Consumer 206,414     202,881     192,772     190,835     195,788  
Commercial and financial 712,879     722,322     610,955     618,870     616,702  
Total Loans $ 4,828,441     $ 4,825,214     $ 4,059,323     $ 3,974,016     $ 3,897,125  
                   


AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1 (Unaudited)            
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES                        
                                   
                                   
  1Q'19   4Q'18   1Q'18
  Average       Yield/   Average       Yield/   Average       Yield/
(Amounts in thousands) Balance   Interest   Rate   Balance   Interest   Rate   Balance   Interest   Rate
                                   
Assets                                  
Earning assets:                                  
Securities:                                  
Taxable $ 1,186,374     $ 9,119     3.07 %   $ 1,227,648     $ 9,528     3.10 %   $ 1,361,277     $ 9,361     2.75 %
Nontaxable 26,561     190     2.86     29,255     252     3.45     32,640     307     3.76  
Total Securities 1,212,935     9,309     3.07     1,256,903     9,780     3.11     1,393,917     9,668     2.77  
                                   
Federal funds sold and other                                  
investments 91,136     918     4.09     87,146     835     3.80     56,173     616     4.45  
                                   
Loans, net 4,839,046     62,335     5.22     4,611,691     59,559     5.12     3,872,369     45,284     4.74  
                                   
Total Earning Assets 6,143,117     72,562     4.79     5,955,740     70,174     4.67     5,322,459     55,568     4.23  
                                   
Allowance for loan losses (32,966 )           (33,864 )           (27,469 )        
Cash and due from banks 99,940             124,299             113,899          
Premises and equipment 70,938             75,120             65,932          
Intangible assets 230,066             213,713             167,136          
Bank owned life insurance 123,708             132,495             122,268          
Other assets 136,175             122,367             87,463          
                                   
Total Assets $ 6,770,978             $ 6,589,870             $ 5,851,688          
                                   
Liabilities and Shareholders' Equity                                  
Interest-bearing liabilities:                                  
Interest-bearing demand $ 1,029,726     $ 839     0.33 %   $ 974,711     $ 515     0.21 %   $ 1,001,672     $ 450     0.18 %
Savings 500,347     477     0.39     509,434     418     0.33     435,433     104     0.10  
Money market 1,158,939     2,557     0.89     1,161,599     2,207     0.75     976,498     984     0.41  
Time deposits 1,042,346     4,959     1.93     899,153     3,901     1.72     776,807     2,179     1.14  
Federal funds purchased and securities                                  
sold under agreements to repurchase 185,032     550     1.21     242,963     732     1.20     175,982     274     0.63  
Federal Home Loan Bank borrowings 227,378     1,421     2.53     240,799     1,468     2.42     276,389     1,030     1.51  
Other borrowings 70,836     898     5.14     70,764     833     4.67     70,550     694     3.99  
                                   
Total Interest-Bearing Liabilities 4,214,604     11,701     1.13     4,099,423     10,074     0.97     3,713,331     5,715     0.62  
                                   
Noninterest demand 1,612,548             1,628,842             1,413,967          
Other liabilities 64,262             33,846             29,150          
Total Liabilities 5,891,414             5,762,111             5,156,448          
                                   
Shareholders' equity 879,564             827,759             695,240          
                                   
Total Liabilities & Equity $ 6,770,978             $ 6,589,870             $ 5,851,688          
                                   
Cost of deposits         0.67 %           0.54 %           0.33 %
Interest expense as a % of earning assets         0.77 %           0.67 %           0.44 %
Net interest income as a % of earning assets     $ 60,861     4.02 %       $ 60,100     4.00 %       $ 49,853     3.80 %
                                   
                                   
1 On a fully taxable equivalent basis.  All yields and rates have been computed using amortized cost.        
Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.        


CONSOLIDATED QUARTERLY FINANCIAL DATA     (Unaudited)      
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES            
     
    March 31,   December 31,   September 30,   June 30,   March 31,
(Amounts in thousands)   2019   2018   2018   2018   2018
                     
Customer Relationship Funding                    
Noninterest demand                    
Commercial   $ 1,298,468     $ 1,217,842     $ 1,182,018     $ 1,154,225     $ 1,163,119  
Retail   275,383     259,318     233,472     236,838     252,055  
Public funds   73,640     68,324     42,474     44,182     49,014  
Other   28,518     24,118     30,725     28,407     24,073  
Total Noninterest Demand   1,676,009     1,569,602     1,488,689     1,463,652     1,488,261  
                     
Interest-bearing demand                    
Commercial   289,544     211,879     167,865     181,646     164,359  
Retail   646,522     650,490     655,429     681,615     700,262  
Public funds   164,411     151,663     89,597     113,020     150,433  
Total Interest-Bearing Demand   1,100,477     1,014,032     912,891     976,281     1,015,054  
                     
Total transaction accounts                    
Commercial   1,588,012     1,429,721     1,349,883     1,335,871     1,327,478  
Retail   921,905     909,808     888,901     918,453     952,317  
Public funds   238,051     219,987     132,071     157,202     199,447  
Other   28,518     24,118     30,725     28,407     24,073  
Total Transaction Accounts   2,776,486     2,583,634     2,401,580     2,439,933     2,503,315  
                     
Savings   508,320     493,807     451,958     444,736     437,878  
                     
Money market                    
Commercial   500,649     459,380     423,304     408,005     410,527  
Retail   602,378     607,837     524,415     522,783     522,882  
Public funds   89,043     106,733     89,221     92,382     102,122  
Total Money Market   1,192,070     1,173,950     1,036,940     1,023,170     1,035,531  
                     
Brokered time certificates   367,841     220,594     192,182     228,602     184,405  
Other time certificates   760,861     705,255     560,850     560,999     558,414  
    1,128,702     925,849     753,032     789,601     742,819  
Total Deposits   $ 5,605,578     $ 5,177,240     $ 4,643,510     $ 4,697,440     $ 4,719,543  
                     
Customer sweep accounts   $ 148,005     $ 214,323     $ 189,035     $ 200,050     $ 173,249  
                     

Explanation of Certain Unaudited Non-GAAP Financial Measures

This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance. The Company believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance and if not provided would be requested by the investor community. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently. The Company provides reconciliations between GAAP and these non-GAAP measures. These disclosures should not be considered an alternative to GAAP.

               
GAAP TO NON-GAAP RECONCILIATION         (Unaudited)    
SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES                          
                   
  Quarterly Trends
                   
(Amounts in thousands, except per share data) 1Q'19   4Q'18   3Q'18   2Q'18   1Q'18
                                       
Net Income $ 22,705     $ 15,962     $ 16,322     $ 16,964     $ 18,027  
                   
Total noninterest income 12,836     12,714     12,291     12,721     12,296  
Securities losses, net 9     425     48     48     102  
BOLI benefits on death (included in other income)     (280 )            
Total Adjustments to Noninterest Income 9     145     48     48     102  
Total Adjusted Noninterest Income 12,845     12,859     12,339     12,769     12,398  
                   
Total noninterest expense 43,099     49,464     37,399     38,246     37,164  
Merger related charges (335 )   (8,034 )   (482 )   (695 )   (470 )
Amortization of intangibles (1,458 )   (1,303 )   (1,004 )   (1,004 )   (989 )
Branch reductions and other expense initiatives (208 )   (587 )            
Total Adjustments to Noninterest Expense (2,001 )   (9,924 )   (1,486 )   (1,699 )   (1,459 )
Total Adjusted Noninterest Expense 41,098     39,540     35,913     36,547     35,705  
                   
Income Taxes 6,409     4,930     4,358     5,189     5,782  
Tax effect of adjustments 510     2,623     230     443     538  
Taxes and tax penalties on acquisition-related BOLI redemption     (485 )            
Effect of change in corporate tax rate                 (248 )
Total Adjustments to Income Taxes 510     2,138     230     443     290  
Adjusted Income Taxes 6,919     7,068     4,588     5,632     6,072  
Adjusted Net Income $ 24,205     $ 23,893     $ 17,626     $ 18,268     $ 19,298  
                                       
Earnings per diluted share, as reported $ 0.44     $ 0.31     $ 0.34     $ 0.35     $ 0.38  
Adjusted Earnings per Diluted Share 0.47     0.47     0.37     0.38     0.40  
Average diluted shares outstanding 52,039     51,237     48,029     47,974     47,688  
                                       
Adjusted Noninterest Expense $ 41,098     $ 39,540     $ 35,913     $ 36,547     $ 35,705  
Foreclosed property expense and net gain/(loss) on sale 40         137     (405 )   (192 )
Net Adjusted Noninterest Expense $ 41,138     $ 39,540     $ 36,050     $ 36,142     $ 35,513  
                   
Revenue $ 73,610     $ 72,698     $ 63,853     $ 62,928     $ 62,058  
Total Adjustments to Revenue 9     145     48     48     102  
Impact of FTE adjustment 87     116     147     87     91  
Adjusted Revenue on a fully taxable equivalent basis $ 73,706     $ 72,959     $ 64,048     $ 63,063     $ 62,251  
Adjusted Efficiency Ratio 55.81 %   54.19 %   56.29 %   57.31 %   57.05 %
                                       
Average Assets $ 6,770,978     $ 6,589,870     $ 5,903,327     $ 5,878,035     $ 5,851,688  
Less average goodwill and intangible assets (230,066 )   (213,713 )   (165,534 )   (166,393 )   (167,136 )
Average Tangible Assets $ 6,540,912     $ 6,376,157     $ 5,737,793     $ 5,711,642     $ 5,684,552  
                             
Return on Average Assets (ROA) 1.36 %   0.96 %   1.10 %   1.16 %   1.25 %
Impact of removing average intangible assets and related amortization 0.12     0.09     0.08     0.08     0.09  
Return on Average Tangible Assets (ROTA) 1.48     1.05     1.18     1.24     1.34  
Impact of other adjustments for Adjusted Net Income 0.02     0.44     0.04     0.04     0.04  
Adjusted Return on Average Tangible Assets 1.50     1.49     1.22     1.28     1.38  
                   
Average Shareholders' Equity $ 879,564     $ 827,759     $ 728,290     $ 709,674     $ 695,240  
Less average goodwill and intangible assets (230,066 )   (213,713 )   (165,534 )   (166,393 )   (167,136 )
Average Tangible Equity $ 649,498   $ 614,046     $ 562,756     $ 543,281     $ 528,104  
                   
Return on Average Shareholders' Equity 10.47 %   7.65 %   8.89 %     9.59 %     10.52 %
Impact of removing average intangible assets and related amortization 4.39     3.29     3.15     3.49     3.89  
Return on Average Tangible Common Equity (ROTCE) 14.86     10.94     12.04     13.08     14.41  
Impact of other adjustments for Adjusted Net Income 0.25     4.50     0.39     0.41     0.41  
Adjusted Return on Average Tangible Common Equity 15.11     15.44     12.43     13.49     14.82  
                   

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