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CST: 17/08/2019 18:22:26   

Seacoast Reports Record Second Quarter 2019 Earnings Results

23 Days ago

Net Income Increased 37% Year-Over-Year to $23.3 Million

Improved Operating Leverage and Strong Noninterest Income Highlight Quarterly Results

STUART, Fla., July 25, 2019 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida (“Seacoast” or the "Company”) (NASDAQ: SBCF) today reported second quarter 2019 net income of $23.3 million, or $0.45 per diluted share, up 37% or $6.3 million year-over-year. Seacoast reported second quarter 2019 adjusted net income1 of $25.8 million, or $0.50 per diluted share, an increase of 41% or $7.6 million compared to the second quarter of 2018.

For the second quarter of 2019, return on average tangible assets was 1.50%, return on average tangible shareholders’ equity was 14.3%, and the efficiency ratio was 53.5%, compared to 1.48%, 14.9% and 56.6%, respectively, in the prior quarter and 1.24%, 13.1%, and 58.4%, respectively, in the second quarter of 2018. Adjusted return on average tangible assets1 was 1.59%, adjusted return on average tangible shareholders’ equity1 was 15.2%, and the adjusted efficiency ratio1 was 51.4%, compared to 1.50%, 15.1%, and 55.8%, respectively, in the prior quarter, and 1.28%, 13.5%, and 57.3%, respectively, in the second quarter of 2018.

Dennis S. Hudson, III, Seacoast’s Chairman and CEO, said, "During the quarter, we achieved record earnings, resulting in a 41% year-over-year increase in adjusted net income1 and 17% year-over-year growth in tangible book value per share. We continue to build a very high quality balance sheet, fortified with a growing capital base, strong asset quality trends, and a well-managed liquidity position."

Hudson added, "Highlights in the quarter included continued expansion of our business banking team in Tampa and South Florida, strong performance from our mortgage banking group, and completion of our $10 million annual expense reduction initiative, all resulting in an improvement in our adjusted efficiency ratio1, declining 4% from the prior quarter to 51.4%."

Charles M. Shaffer, Seacoast’s Chief Operating Officer and Chief Financial Officer, said, “Our second quarter 2019 results demonstrate that our focus on strong financial performance, disciplined credit underwriting, and franchise expansion in robust markets continues to create value for shareholders. During the quarter, we continued to drive improved operating leverage while delivering a strictly underwritten credit portfolio that is well diversified in terms of asset mix and granularity. We have built a balance sheet that is supported by an excellent customer franchise, with an average loan to deposit ratio of 87.3%, providing ample room for expansion of loans. We ended the quarter with a tangible common equity ratio of 10.7% and healthy levels of liquidity, both of which should support our ability to deploy capital for continued organic growth and disciplined opportunistic acquisitions."

Second Quarter 2019 Financial Highlights

Income Statement

  • Net income was $23.3 million, or $0.45 per diluted share, compared to $22.7 million, or $0.44, for the prior quarter and $17.0 million, or $0.35, for the second quarter of 2018. For the six months ended June 30, 2019, net income was $46.0 million, or $0.88 per diluted share, compared to $35.0 million, or $0.73, for the six months ended June 30, 2018. Adjusted net income1 was $25.8 million, or $0.50 per diluted share, compared to $24.2 million, or $0.47, for the prior quarter and $18.3 million, or $0.38, for the second quarter of 2018. For the six months ended June 30, 2019, adjusted net income1 was $50.0 million, or $0.96 per diluted share, compared to $37.6 million, or $0.79, for the six months ended June 30, 2018.

  • Net revenues were $73.7 million, an increase of $0.1 million, compared to the prior quarter, and an increase of $10.8 million, or 17%, compared to the second quarter of 2018. For the six months ended June 30, 2019, net revenues were $147.3 million, an increase of $22.3 million, or 18%, compared to the six months ended June 30, 2018. Adjusted revenues1 were $74.2 million, an increase of $0.6 million, or 1%, from the prior quarter and an increase of $11.2 million, or 18%, from the second quarter of 2018. For the six months ended June 30, 2019, adjusted revenues1 were $147.8 million, an increase of $22.7 million, or 18%, compared to the six months ended June 30, 2018.

  • Net interest income totaled $60.1 million, a decrease of $0.6 million, or 1%, from the prior quarter and an increase of $9.9 million, or 20%, from the second quarter of 2018. For the six months ended June 30, 2019, net interest income was $120.9 million, an increase of $20.9 million, or 21%, compared to the six months ended June 30, 2018.

  • Net interest margin was 3.94% in the second quarter of 2019, 4.02% in the first quarter of 2019 and 3.77% in the second quarter of 2018. Quarter-over-quarter, the yield on loans contracted 6 basis points, the yield on securities contracted 2 basis points, and the cost of deposits increased 9 basis points. The impact on net interest margin from accretion of purchase discounts on acquired loans was 27 basis points in the second quarter of 2019, compared to 26 basis points in the prior quarter and 17 basis points in the second quarter of 2018. During the quarter, the yield curve declined across all points on the curve, affecting variable rate loans and securities, and reducing add-on rates for new loans originated. Of note, late in the quarter, deposit rate pressure began to abate.

  • Noninterest income totaled $13.6 million, an increase of $0.7 million, or 6%, compared to the prior quarter and an increase of $0.9 million, or 7%, from the second quarter of 2018. For the six months ended June 30, 2019, noninterest income was $26.4 million, an increase of $1.4 million, or 6%, compared to the six months ended June 30, 2018. Sequentially, noninterest income increased across nearly every category. Highlights include an increase of $0.6 million in mortgage banking fees, reflecting increasing success in generating saleable mortgage volume, a $0.2 million increase in wealth-related fees attributed to continued growth in assets under management, a $0.2 million increase in service charges on deposits, in part the result of increased revenue from treasury products, and a $0.2 million increase in other income, primarily attributed to higher swap fees. During the quarter, $38.2 million of securities were sold with an average yield of 1.85%, resulting in a loss of $0.6 million. These funds were reinvested at an average yield of 2.90%.

  • The provision for loan losses was $2.6 million compared to $1.4 million in the prior quarter and $2.5 million in the second quarter of 2018.

  • Noninterest expense was $41.0 million, a decrease of $2.1 million, or 5%, compared to the prior quarter and an increase of $2.8 million, or 7%, from the second quarter of 2018. For the six months ended June 30, 2019, noninterest expense was $84.1 million, an increase of $8.7 million, or 12%, compared to the six months ended June 30, 2018. Sequentially, changes from the first quarter of 2019 in noninterest expense consisted of the following:

    º Salaries and wages increased by $0.9 million, attributed to $1.1 million in severance costs associated with the reduction of 50 full time equivalent employees as previously announced. The full benefit of the reduction in force should be realized in the third quarter.

    º Employee benefits decreased $1.0 million attributed to the reduction in full time equivalent employees, lower seasonal payroll taxes and 401(k) plan contributions, and lower health insurance claims when compared to the first quarter of 2019.

    º Legal and professional fees decreased by $0.8 million primarily due to higher expenses incurred in the first quarter of 2019 on projects in risk management and lending operations, leading to the successful launch of our commercial digital origination platform.

    º Our continued focus on efficiency and streamlining operations resulted in decreases across several categories, most notably a decrease of $0.8 million in other expenses and $0.2 million in furniture and equipment.

    º During the quarter, we closed one banking center location, resulting in a $0.3 million one-time expense which is included in occupancy expense. We will close an additional banking center location in the third quarter.

  • Seacoast recorded $6.9 million in income tax expense in the second quarter of 2019, compared to $6.4 million in the prior quarter and $5.2 million in the second quarter of 2018. Tax benefits related to stock-based compensation were $0.1 million in the second quarter compared to $0.6 million in the prior quarter, during which a significant amount of previously granted awards vested. The quarter-over-quarter change unfavorably impacted earnings per share by one cent.

  • Year to date adjusted revenues1 increased 18% compared to prior year while adjusted noninterest expense1 increased 10%, generating 8% operating leverage.

  • The efficiency ratio was 53.5% compared to 56.6% in the prior quarter and 58.4% in the second quarter of 2018. The adjusted efficiency ratio1 was 51.4% compared to 55.8% in the prior quarter and 57.3% in the second quarter of 2018. The reduction in both ratios was the outcome of our continued focus on streamlining operations, in combination with driving top-line revenue improvements.

Balance Sheet

  • At June 30, 2019, the Company had total assets of $6.8 billion and total shareholders' equity of $930.2 million.  Book value per share was $18.08 and tangible book value per share was $13.65, compared to $17.44 and $12.98, respectively, at March 31, 2019 and $15.18 and $11.67, respectively, at June 30, 2018. Year-over-year, tangible book value per share increased 17%.

  • Debt securities totaled $1.2 billion at June 30, 2019, an increase of $28.9 million compared to the prior quarter and a decrease of $135.1 million from June 30, 2018. During the quarter, $38.2 million of securities were sold, with an average yield of 1.85%, resulting in a loss of $0.6 million. Purchases of securities during the quarter totaled $87.4 million at an average yield of 2.90%.

  • Loans totaled $4.9 billion at June 30, 2019, an increase of $59.7 million, or 1.2%, compared to the prior quarter, and an increase of $914.1 million, or 23%, from June 30, 2018.

  • New loan originations of $407 million, compared to $310 million in the prior quarter, resulted in net loan growth in the quarter of 5% on an annualized basis, overcoming a $59 million increase in early loan payoffs when compared to the prior quarter. During the second quarter, we saw acceleration in commercial real estate loans being refinanced away with minimal or no covenants, limited or no guarantees, in combination with increasing leverage in projects. Additionally, we allowed a few higher risk loans to be refinanced away in categories such as marinas, hotels, and speculative construction. We remain patient and committed to our strict underwriting principles.

  • Consumer and small business originations for the second quarter of 2019 were a record $136.5 million, an increase of 15% compared to the first quarter of 2019 and an increase of 30% compared to the second quarter of 2018.

  • Commercial originations during the second quarter of 2019 were $157.0 million, an increase of 44% compared to the first quarter of 2019 and an increase of 12% compared to the second of quarter 2018.

  • Closed residential loans retained in the portfolio for the second quarter of 2019 were $51.8 million, up 4% from the first quarter of 2019 and down 31% from the second quarter of 2018. The decrease from prior year is consistent with the mortgage banking team's shift towards generating saleable volume and away from residential construction lending.

  • We continue to manage the Company's exposure to commercial real estate. Construction and land development and commercial real estate loans remain well below regulatory guidance at 51% and 205% of total bank-level risk based capital, respectively, down from 57% and 216%, respectively, in the first quarter of 2019. On a consolidated basis, inclusive of capital at the holding company, construction and land development and commercial real estate loans represent 48% and 192%, respectively, of total consolidated risk based capital.

  • Concentrations continue to be well managed with an average commercial loan size of approximately $350,000. The top 10 and top 20 relationships represented 19% and 34%, respectively, of total consolidated risk based capital, down from 25% and 42% compared to second quarter of 2018 and down from 29% and 48% compared to second quarter of 2016. Our largest committed exposure totals $29 million.

  • Pipelines (loans in underwriting and approval or approved and not yet closed) remained strong, totaling $377.6 million as of June 30, 2019.

  • Consumer and small business pipelines were $65.5 million, a decrease of 3% sequentially and an increase of 24% compared to the prior year.

  • Commercial pipelines were $261.6 million, an increase of 48% sequentially and 34% compared to the prior year.

  • Residential pipelines were $50.5 million, an increase of 11% sequentially and a decrease of 21% compared to the prior year, consistent with a shift in focus to generating saleable volume, which at June 30, 2019 represents 90% of the residential pipeline.

  • Total deposits were $5.5 billion as of June 30, 2019, a decrease of $64.4 million, or 1.1%, sequentially and an increase of $843.8 million, or 18%, from the prior year.

  • Total deposits grew 3% on an annualized basis quarter-over-quarter, excluding the impact of a $99 million reduction in brokered time deposits. The decrease in brokered time deposits was the result of a shift towards lower rate Federal Home Loan Bank advances in the second quarter.

  • During the second quarter, we accelerated the velocity of our commercial customer acquisition, with business checking balances growing 8% on an annualized basis overcoming seasonal pressure, the result of expansion of our business banking franchise in the Tampa and Fort Lauderdale markets.

  • Interest-bearing deposits (interest-bearing demand, savings and money market deposits) increased year-over-year $373.0 million, or 15%, to $2.8 billion, noninterest bearing demand deposits increased $206.2 million, or 14%, to $1.7 billion, and CDs increased $264.6 million, or 34%, to $1.1 billion.

  • Overall cost of deposits increased to 76 basis points. Of note, late in the quarter, deposit rate pressure began to abate.

  • Second quarter return on average tangible assets (ROTA) was 1.50%, compared to 1.48% in the prior quarter and 1.24% in the second quarter of 2018. Adjusted ROTA1 was 1.59% compared to 1.50% in the prior quarter and 1.28% in the second quarter of 2018.

Capital

  • Second quarter return on average tangible common equity (ROTCE) was 14.3%, compared to 14.9% in the prior quarter and 13.1% in the second quarter of 2018. Adjusted ROTCE1 was 15.2% compared to 15.1% in the prior quarter and 13.5% in the second quarter of 2018.

  • The tier 1 capital ratio was 14.6%, total capital ratio was 15.2% and the tier 1 leverage ratio was 11.7% at June 30, 2019.

  • Tangible common equity to tangible assets was 10.7% at June 30, 2019, compared to 10.2% at March 31, 2019 and 9.6% at June 30, 2018.

Asset Quality

  • Nonperforming loans to total loans outstanding was 0.47% at June 30, 2019, 0.46% at March 31, 2019, and 0.66% at June 30, 2018.

  • Nonperforming assets to total assets was 0.50% at June 30, 2019, 0.51% at March 31, 2019 and 0.58% at June 30, 2018. Nonperforming assets decreased by $0.5 million to $33.8 million in the second quarter of 2019.

  • The ratio of allowance for loan losses to total loans was 0.69% at June 30, 2019, 0.68% at March 31, 2019, and 0.73% at June 30, 2018. The ratio of allowance for loan losses to non-acquired loans was 0.87% at June 30, 2019, 0.89% at March 31, 2019, and 0.88% at June 30, 2018.

  • Net charge-offs were $1.8 million or 0.15% of average loans for the second quarter of 2019 compared to $1.0 million, or 0.08% of average loans in the prior quarter.
FINANCIAL HIGHLIGHTS       (Unaudited)      
(Amounts in thousands except per share data)                
  Quarterly Trends
                   
  2Q'19   1Q'19   4Q'18   3Q'18   2Q'18
Selected Balance Sheet Data:                  
Total Assets $ 6,824,886     $ 6,783,389     $ 6,747,659     $ 5,930,934     $ 5,922,681  
Gross Loans 4,888,139     4,828,441     4,825,214     4,059,323     3,974,016  
Total Deposits 5,541,209     5,605,578     5,177,240     4,643,510     4,697,440  
                   
Performance Measures:                  
Net Income $ 23,253     $ 22,705     $ 15,962     $ 16,322     $ 16,964  
Net Interest Margin 3.94 %   4.02 %   4.00 %   3.82 %   3.77 %
Average Diluted Shares Outstanding 51,952     52,039     51,237     48,029     47,974  
Diluted Earnings Per Share (EPS) $ 0.45     $ 0.44     $ 0.31     $ 0.34     $ 0.35  
Return on (annualized):                  
Average Assets (ROA) 1.38 %   1.36 %   0.96 %   1.10 %   1.16 %
Average Tangible Assets (ROTA) 1.50     1.48     1.05     1.18     1.24  
Average Tangible Common Equity (ROTCE) 14.30     14.86     10.94     12.04     13.08  
Efficiency Ratio 53.48     56.55     65.76     57.04     58.41  
                   
Adjusted Operating Measures1:                  
Adjusted Net Income $ 25,818     $ 24,205     $ 23,893     $ 17,626     $ 18,268  
Adjusted Diluted EPS 0.50     0.47     0.47     0.37     0.38  
Adjusted ROTA 1.59 %   1.50 %   1.49 %   1.22 %   1.28 %
Adjusted ROTCE 15.17     15.11     15.44     12.43     13.49  
Adjusted Efficiency Ratio 51.44     55.81     54.19     56.29     57.31  
Adjusted Noninterest Expenses as a                  
Percent of Average Tangible Assets 2.34     2.55     2.46     2.48     2.57  
                   
Other Data:                  
Market capitalization2 $ 1,309,158     $ 1,354,759     $ 1,336,415     $ 1,380,275     $ 1,489,411  
Full-time equivalent employees 852     902     902     835     826  
Number of ATMs 81     84     87     86     87  
Full service banking offices 49     50     51     49     49  
Registered online users 104,017     102,274     99,415     94,400     92,107  
Registered mobile devices 92,281     87,844     83,151     73,300     69,038  
1 Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP
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%

Second Quarter Operating Highlights

Modernizing How We Sell

  • After a successful pilot program early this year, we launched marketing efforts in the second quarter highlighting automated fulfillment for small business loan products. While currently limited to a select group of products, the platform offers digitized onboarding and should significantly reduce the cost to originate small business loans to current customers, while maintaining our strict underwriting principles.

Lowering Our Cost to Serve

  • We consolidated one banking center location in the second quarter of 2019 with an eight month payback period and one-time expense of $0.3 million. We have one remaining consolidation planned for the third quarter of 2019.

  • We’ve now achieved our Vision 2020 objective of reducing our footprint by 20% to meet the evolving needs of our customers. We were able to achieve this objective ahead of plan due to successful M&A and the repositioning of our banking center network in strategic growth markets.

  • At quarter end, average deposits per banking center exceeded $113 million, up from $96 million during the same period last year.

  • During the quarter, we completed our previously announced $10 million annual expense reduction initiative, which included reducing the full time equivalent employee count by 50, renegotiating key vendor contracts, and reducing expenses across a number of line items.

Driving Improvements in How Our Business Operates

  • Late last year we launched a large-scale initiative to implement a fully digital loan origination platform across all business banking units. In the second quarter, the implementation and launch were completed. This follows the successful rollout of our fully digital mortgage banking origination platform. This investment should lead to significant improvement in operational efficiency and banker productivity in 2020 and beyond.

Scaling and Evolving Our Culture

  • We continue to invest in business bankers. In the second quarter we on-boarded 5 new bankers, 15 year to date, in order to fully support the strong markets we serve. We have a robust pipeline of talent as we enter the third quarter of 2019 and will continue to opportunistically add top-tier bankers in the Tampa and Fort Lauderdale markets.

OTHER INFORMATION

Conference Call Information
Seacoast will host a conference call on July 26, 2019 at 10:00 a.m. (Eastern Time) to discuss the second quarter 2019 earnings results and business trends. Investors may call in (toll-free) by dialing (888) 517-2513 (passcode: 8644 001; 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 July 26, 2019 by dialing (888) 843-7419 (domestic) and using passcode: 8644 001#.

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 July 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 $5.5 billion in deposits as of June 30, 2019. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, and 49 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; uncertainty related to the impact of LIBOR calculations on securities and loans; 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 dividend 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.

 

FINANCIAL HIGHLIGHTS (Unaudited)        
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES            
   
  Quarterly Trends   Six  Months Ended
                           
(Amounts in thousands, except ratios and per share data) 2Q'19   1Q'19   4Q'18   3Q'18   2Q'18   2Q'19   2Q'18
                           
Summary of Earnings                          
Net income $ 23,253     $ 22,705     $ 15,962     $ 16,322     $ 16,964     45,958     34,991  
Adjusted net income1 25,818     24,205     23,893     17,626     18,268     50,023     37,566  
Net interest income2 60,219     60,861     60,100     51,709     50,294     121,080     100,147  
Net interest margin2,3 3.94 %   4.02 %   4.00 %   3.82 %   3.77 %   3.98 %   3.78 %
                           
Performance Ratios                          
Return on average assets-GAAP basis3 1.38 %   1.36 %   0.96 %   1.10 %   1.16 %   1.37 %   1.20 %
Return on average tangible assets-GAAP basis3,4 1.50     1.48     1.05     1.18     1.24     1.49     1.29  
Adjusted return on average tangible assets1,3,4 1.59     1.50     1.49     1.22     1.28     1.55     1.33  
                           
Return on average shareholders' equity-GAAP basis3 10.23     10.47     7.65     8.89     9.59     10.35     10.04  
Return on average tangible common equity-GAAP basis3,4 14.30     14.86     10.94     12.04     13.08     14.57     13.73  
Adjusted return on average tangible common equity1,3,4 15.17     15.11     15.44     12.43     13.49     15.14     14.14  
Efficiency ratio5 53.48     56.55     65.76     57.04     58.41     55.01     58.11  
Adjusted efficiency ratio1 51.44     55.81     54.19     56.29     57.31     53.62     57.18  
Noninterest income to total revenue (excluding securities losses) 18.93     17.45     17.97     19.31     20.28     18.19     20.11  
Tangible common equity to tangible assets4 10.65     10.18     9.72     9.85     9.56     10.65     9.56  
Average loan-to-deposit ratio 87.27     90.55     89.14     86.25     83.51     88.87     83.80  
End of period loan-to-deposit ratio 88.53     86.38     93.43     87.77     84.91     88.53     84.91  
                           
Per Share Data                          
Net income diluted-GAAP basis $ 0.45     $ 0.44     $ 0.31     $ 0.34     $ 0.35     $ 0.88     $ 0.73  
Net income basic-GAAP basis 0.45     0.44     0.32     0.35     0.36     0.89     0.74  
Adjusted earnings1 0.50     0.47     0.47     0.37     0.38     0.96     0.79  
                           
Book value per share common 18.08     17.44     16.83     15.50     15.18     18.08     15.18  
Tangible book value per share 13.65     12.98     12.33     12.01     11.67     13.65     11.67  
Cash dividends declared                          
                           
                           
1 Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP.    
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   Six  Months Ended
                           
(Amounts in thousands, except per share data) 2Q'19   1Q'19   4Q'18   3Q'18   2Q'18   2Q'19   2Q'18
                           
Interest on securities:                          
Taxable $ 8,933     $ 9,119     $ 9,528     $ 9,582     $ 9,389     $ 18,052     $ 18,750  
Nontaxable 143     151     200     225     216     294     459  
Interest and fees on loans 62,288     62,287     59,495     48,713     46,519     124,575     91,776  
Interest on federal funds sold and other investments 873     918     835     634     585     1,791     1,201  
Total Interest Income 72,237     72,475     70,058     59,154     56,709     144,712     112,186  
                           
Interest on deposits 4,825     3,873     3,140     2,097     1,988     8,698     3,526  
Interest on time certificates 5,724     4,959     3,901     2,975     2,629     10,683     4,808  
Interest on borrowed money 1,552     2,869     3,033     2,520     1,885     4,421     3,883  
Total Interest Expense 12,101     11,701     10,074     7,592     6,502     23,802     12,217  
                           
Net Interest Income 60,136     60,774     59,984     51,562     50,207     120,910     99,969  
Provision for loan losses 2,551     1,397     2,342     5,774     2,529     3,948     3,614  
Net Interest Income After Provision for Loan Losses 57,585     59,377     57,642     45,788     47,678     116,962     96,355  
                           
Noninterest income:                          
Service charges on deposit accounts 2,894     2,697     3,019     2,833     2,674     5,591     5,346  
Trust fees 1,147     1,017     1,040     1,083     1,039     2,164     2,060  
Mortgage banking fees 1,734     1,115     809     1,135     1,336     2,849     2,738  
Brokerage commissions and fees 541     436     468     444     461     977     820  
Marine finance fees 201     362     185     194     446     563     1,019  
Interchange income 3,405     3,401     3,198     3,119     3,076     6,806     6,018  
BOLI income 927     915     1,091     1,078     1,066     1,842     2,122  
SBA gains 691     636     519     473     748     1,327     1,482  
Other 2,503     2,266     2,810     1,980     1,923     4,769     3,562  
  14,043     12,845     13,139     12,339     12,769     26,888     25,167  
Securities losses, net (466 )   (9 )   (425 )   (48 )   (48 )   (475 )   (150 )
Total Noninterest Income 13,577     12,836     12,714     12,291     12,721     26,413     25,017  
                           
                           
Noninterest expenses:                          
Salaries and wages 19,420     18,506     22,172     17,129     16,429     37,926     31,810  
Employee benefits 3,195     4,206     3,625     3,205     3,034     7,401     6,115  
Outsourced data processing costs 3,876     3,845     5,809     3,493     3,393     7,721     7,072  
Telephone / data lines 893     811     602     624     643     1,704     1,255  
Occupancy 3,741     3,807     3,747     3,214     3,316     7,548     6,433  
Furniture and equipment 1,544     1,757     2,452     1,367     1,468     3,301     2,925  
Marketing 1,211     1,132     1,350     1,139     1,344     2,343     2,596  
Legal and professional fees 2,033     2,847     3,668     2,019     2,301     4,880     4,274  
FDIC assessments 337     488     571     431     595     825     1,193  
Amortization of intangibles 1,456     1,458     1,303     1,004     1,004     2,914     1,993  
Foreclosed property expense and net (gain)/loss on sale (174 )   (40 )       (136 )   405     (214 )   597  
Other 3,468     4,282     4,165     3,910     4,314     7,750     9,147  
Total Noninterest Expense 41,000     43,099     49,464     37,399     38,246     84,099     75,410  
                           
Income Before Income Taxes 30,162     29,114     20,892     20,680     22,153     59,276     45,962  
Income taxes 6,909     6,409     4,930     4,358     5,189     13,318     10,971  
                           
Net Income $ 23,253     $ 22,705     $ 15,962     $ 16,322     $ 16,964     $ 45,958     $ 34,991  
                           
Per share of common stock:                          
                           
Net income diluted $ 0.45     $ 0.44     $ 0.31     $ 0.34     $ 0.35     $ 0.88     $ 0.73  
Net income basic 0.45     0.44     0.32     0.35     0.36     0.89     0.74  
Cash dividends declared                          
                           
Average diluted shares outstanding 51,952     52,039     51,237     48,029     47,974     51,998     47,828  
Average basic shares outstanding 51,446     51,359     50,523     47,205     47,165     51,403     47,059  
                           


CONDENSED CONSOLIDATED BALANCE SHEETS   (Unaudited)    
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES          
     
    June 30,   March 31,   December 31,   September 30,   June 30,
(Amounts in thousands)   2019   2019   2018   2018   2018
                     
Assets                    
Cash and due from banks   $ 97,792     $ 98,270     $ 92,242     $ 101,920     $ 123,927  
Interest bearing deposits with other banks   61,987     105,741     23,709     3,174     7,594  
Total Cash and Cash Equivalents   159,779     204,011     115,951     105,094     131,521  
                     
Time deposits with other banks   4,980     8,174     8,243     9,813     10,562  
                     
Debt Securities:                    
Available for sale (at fair value)   914,615     877,549     865,831     923,206     954,906  
Held to maturity (at amortized cost)   287,302     295,485     357,949     367,387     382,137  
Total Debt Securities   1,201,917     1,173,034     1,223,780     1,290,593     1,337,043  
                     
Loans held for sale   17,513     13,900     11,873     16,172     14,707  
                     
Loans   4,888,139     4,828,441     4,825,214     4,059,323     3,974,016  
Less: Allowance for loan losses   (33,505 )   (32,822 )   (32,423 )   (33,865 )   (28,924 )
Net Loans   4,854,634     4,795,619     4,792,791     4,025,458     3,945,092  
                     
Bank premises and equipment, net   68,738     70,412     71,024     63,531     63,991  
Other real estate owned   11,043     11,921     12,802     4,715     8,417  
Goodwill   205,260     205,260     204,753     148,555     148,555  
Other intangible assets, net   22,672     23,959     25,977     16,508     17,319  
Bank owned life insurance   125,233     124,306     123,394     122,561     121,602  
Net deferred tax assets   19,353     24,647     28,954     25,822     26,021  
Other assets   133,764     128,146     128,117     102,112     97,851  
Total Assets   $ 6,824,886     $ 6,783,389     $ 6,747,659     $ 5,930,934     $ 5,922,681  
                     
Liabilities and Shareholders' Equity                    
Liabilities                    
Deposits                    
Noninterest demand   $ 1,669,804     $ 1,676,009     $ 1,569,602     $ 1,488,689     $ 1,463,652  
Interest-bearing demand   1,124,519     1,100,477     1,014,032     912,891     976,281  
Savings   519,732     508,320     493,807     451,958     444,736  
Money market   1,172,971     1,192,070     1,173,950     1,036,940     1,023,170  
Other time certificates   553,107     539,202     513,312     411,208     413,643  
Brokered time certificates   268,998     367,841     220,594     192,182     228,602  
Time certificates of more than $250,000   232,078     221,659     191,943     149,642     147,356  
Total Deposits   5,541,209     5,605,578     5,177,240     4,643,510     4,697,440  
                     
Securities sold under agreements to repurchase   82,015     148,005     214,323     189,035     200,050  
Federal Home Loan Bank borrowings   140,000     3,000     380,000     261,000     205,000  
Subordinated debt   70,944     70,874     70,804     70,734     70,664  
Other liabilities   60,479     59,508     41,025     33,824     33,364  
Total Liabilities   5,894,647     5,886,965     5,883,392     5,198,103     5,206,518  
                     
Shareholders' Equity                    
Common stock   5,146     5,141     5,136     4,727     4,716  
Additional paid in capital   782,928     780,680     778,501     668,711     665,885  
Retained earnings   143,032     119,779     97,074     81,112     64,790  
Treasury stock   (6,137 )   (4,959 )   (3,384 )   (2,854 )   (2,884 )
    924,969     900,641     877,327     751,696     732,507  
Accumulated other comprehensive income/(loss), net   5,270     (4,217 )   (13,060 )   (18,865 )   (16,344 )
Total Shareholders' Equity   930,239     896,424     864,267     732,831     716,163  
Total Liabilities & Shareholders' Equity   $ 6,824,886     $ 6,783,389     $ 6,747,659     $ 5,930,934     $ 5,922,681  
                     
Common shares outstanding   51,461     51,414     51,361     47,270     47,163  
                     


CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES                
   
                   
(Amounts in thousands) 2Q'19   1Q'19   4Q'18   3Q'18   2Q'18
                   
Credit Analysis                  
Net charge-offs (recoveries) - non-acquired loans $ 1,621     $ 762     $ 3,693     $ 800     $ 1,715  
Net charge-offs (recoveries) - acquired loans 220     201     56     (3 )   (25 )
Total Net Charge-offs (Recoveries) 1,841     963     3,749     797     1,690  
                   
TDR valuation adjustments $ 27     $ 35     $ 35     $ 36     $ 33  
                   
Net charge-offs (recoveries) to average loans - non-acquired loans 0.13 %   0.06 %   0.32 %   0.08 %   0.17 %
Net charge-offs (recoveries) to average loans - acquired loans 0.02     0.02              
Total Net Charge-offs (Recoveries) to Average Loans 0.15     0.08     0.32     0.08     0.17  
                   
Provision for loan losses - non-acquired loans $ 2,326     $ 1,709     $ 2,343     $ 5,640     $ 2,591  
Provision for (recapture of) loan losses - acquired loans 225     (312 )   (1 )   134     (62 )
Total Provision for Loan Losses $ 2,551     $ 1,397     $ 2,342     $ 5,774     $ 2,529  
                   
Allowance for loan losses - non-acquired loans $ 33,393     $ 32,715     $ 31,803     $ 33,188     $ 28,384  
Allowance for loan losses - acquired loans 112     107     620     677     540  
Total Allowance for Loan Losses $ 33,505     $ 32,822     $ 32,423     $ 33,865     $ 28,924  
                   
Non-acquired loans at end of period $ 3,817,358     $ 3,667,221     $ 3,588,251     $ 3,383,571     $ 3,221,569  
Purchased noncredit impaired loans at end of period 1,057,200     1,147,432     1,222,529     662,701     739,232  
Purchased credit impaired loans at end of period 13,581     13,788     14,434     13,051     13,215  
Total Loans $ 4,888,139     $ 4,828,441     $ 4,825,214     $ 4,059,323     $ 3,974,016  
                   
Non-acquired loans allowance for loan losses to non-acquired loans at end of period 0.87 %   0.89 %   0.89 %   0.98 %   0.88 %
Total allowance for loan losses to total loans at end of period 0.69     0.68     0.67     0.83     0.73  
Purchase discount on acquired loans at end of period 3.76     3.80     3.86     2.25     2.31  
                   
End of Period                  
Nonperforming loans - non-acquired $ 15,810     $ 15,423     $ 15,783     $ 18,998     $ 19,578  
Nonperforming loans - acquired 6,986     6,990     10,693     7,142     6,624  
Other real estate owned - non-acquired 66     831     386     418     354  
Other real estate owned - acquired 1,612     1,725     3,020     1,203     4,969  
Bank branches closed included in other real estate owned 9,365     9,365     9,396     3,094     3,094  
Total Nonperforming Assets $ 33,839     $ 34,334     $ 39,278     $ 30,855     $ 34,619  
                   
Restructured loans (accruing) $ 14,534     $ 14,857     $ 13,346     $ 13,797     $ 14,241  
                   
Nonperforming loans to loans at end of period - non-acquired 0.41 %   0.42 %   0.44 %   0.56 %   0.61 %
Nonperforming loans to loans at end of period - acquired 0.65     0.60     0.86     1.06     0.88  
Total Nonperforming Loans to Loans at End of Period 0.47     0.46     0.55     0.64     0.66  
                   
Nonperforming assets to total assets - non-acquired 0.37 %   0.38 %   0.38 %   0.38 %   0.39 %
Nonperforming assets to total assets - acquired 0.13     0.13     0.20     0.14     0.19  
Total Nonperforming Assets to Total Assets 0.50     0.51     0.58     0.52     0.58  
                   
  June 30,   March 31,   December 31,   September 30,   June 30,
Loans 2019   2019   2018   2018   2018
                   
Construction and land development $ 379,991     $ 417,565     $ 443,568     $ 376,257     $ 359,070  
Commercial real estate - owner occupied 1,005,876     989,234     970,181     829,368     812,306  
Commercial real estate - non-owner occupied 1,184,409     1,173,183     1,161,885     897,331     888,989  
Residential real estate 1,400,184     1,329,166     1,324,377     1,152,640     1,103,946  
Consumer 215,932     206,414     202,881     192,772     190,835  
Commercial and financial 701,747     712,879     722,322     610,955     618,870  
Total Loans $ 4,888,139     $ 4,828,441     $ 4,825,214     $ 4,059,323     $ 3,974,016  
                   


AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1 (Unaudited)            
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES                        
                                   
  2Q'19   1Q'19   2Q'18
  Average       Yield/   Average       Yield/   Average       Yield/
(Amounts in thousands) Balance   Interest   Rate   Balance   Interest   Rate   Balance   Interest   Rate
                                   
Assets                                  
Earning assets:                                  
Securities:                                  
Taxable $ 1,169,891     $ 8,933     3.05 %   $ 1,186,374     $ 9,119     3.07 %   $ 1,324,280     $ 9,389     2.84 %
Nontaxable 24,110     179     2.96     26,561     190     2.86     32,055     273     3.41  
Total Securities 1,194,001     9,112     3.05     1,212,935     9,309     3.07     1,356,335     9,662     2.85  
                                   
Federal funds sold and other                                  
investments 91,481     873     3.83     91,136     918     4.09     49,387     585     4.75  
                                   
Loans, net 4,841,751     62,335     5.16     4,839,046     62,335     5.22     3,948,460     46,549     4.73  
                                   
Total Earning Assets 6,127,233     72,320     4.73     6,143,117     72,562     4.79     5,354,182     56,796     4.25  
                                   
Allowance for loan losses (32,806 )           (32,966 )           (29,234 )        
Cash and due from banks 91,160             99,940             110,549          
Premises and equipment 69,890             70,938             64,445          
Intangible assets 228,706             230,066             166,393          
Bank owned life insurance 124,631             123,708             121,008          
Other assets 126,180             136,175             90,692          
                                   
Total Assets $ 6,734,994             $ 6,770,978             $ 5,878,035          
                                   
Liabilities and Shareholders' Equity                                  
Interest-bearing liabilities:                                  
Interest-bearing demand $ 1,118,703     $ 1,150     0.41 %   $ 1,029,726     $ 839     0.33 %   $ 996,929     $ 492     0.20 %
Savings 513,773     586     0.46     500,347     477     0.39     439,691     118     0.11  
Money market 1,179,345     3,089     1.05     1,158,939     2,557     0.89     1,027,705     1,378     0.54  
Time deposits 1,089,020     5,724     2.11     1,042,346     4,959     1.93     790,404     2,629     1.33  
Federal funds purchased and securities                                  
sold under agreements to repurchase 91,614     355     1.55     185,032     550     1.21     179,540     334     0.75  
Federal Home Loan Bank borrowings 51,571     329     2.56     227,378     1,421     2.53     160,846     741     1.85  
Other borrowings 70,903     868     4.91     70,836     898     5.14     70,623     810     4.60  
                                   
Total Interest-Bearing Liabilities 4,114,929     12,101     1.18     4,214,604     11,701     1.13     3,665,738     6,502     0.71  
                                   
Noninterest demand 1,646,934             1,612,548             1,473,331          
Other liabilities 61,652             64,262             29,292          
Total Liabilities 5,823,515             5,891,414             5,168,361          
                                   
Shareholders' equity 911,479             879,564             709,674          
                                   
Total Liabilities & Equity $ 6,734,994             $ 6,770,978             $ 5,878,035          
                                   
Cost of deposits         0.76 %           0.67 %           0.39 %
Interest expense as a % of earning assets         0.79 %           0.77 %           0.49 %
Net interest income as a % of earning assets     $ 60,219     3.94 %       $ 60,861     4.02 %       $ 50,294     3.77 %
                                   
                                   
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.        


AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1 (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES                
   
  Six Months Ended June 30, 2019   Six Months Ended June 30, 2018
  Average       Yield/   Average       Yield/
(Amounts in thousands, except ratios) Balance   Interest   Rate   Balance   Interest   Rate
                       
Assets                      
Earning assets:                      
Securities:                      
Taxable $ 1,178,087     $ 18,052     3.06 %   $ 1,342,676     $ 18,750     2.79 %
Nontaxable 25,329     368     2.91     32,346     580     3.59  
Total Securities 1,203,416     18,420     3.06     1,375,022     19,330     2.81  
                       
Federal funds sold and other                      
investments 91,310     1,791     3.96     52,761     1,201     4.59  
                       
Loans, net 4,840,406     124,671     5.19     3,910,625     91,833     4.74  
                       
Total Earning Assets 6,135,132     144,882     4.76     5,338,408     112,364     4.24  
                       
Allowance for loan losses (32,885 )           (28,356 )        
Cash and due from banks 95,526             112,215          
Premises and equipment 70,411             65,184          
Intangible assets 229,382             166,762          
Bank owned life insurance 124,172             121,635          
Other assets 131,148             89,086          
                       
Total Assets $ 6,752,886             $ 5,864,934          
                       
Liabilities and Shareholders' Equity                      
Interest-bearing liabilities:                      
Interest-bearing demand $ 1,074,460     $ 1,989     0.37 %   $ 999,287     $ 942     0.19 %
Savings 507,097     1,062     0.42     437,574     222     0.10  
Money market 1,169,198     5,647     0.97     1,002,243     2,362     0.48  
Time deposits 1,065,812     10,683     2.02     783,643     4,808     1.24  
Federal funds purchased and securities                      
sold under agreements to repurchase 138,065     905     1.32     177,771     608     0.69  
Federal Home Loan Bank borrowings 138,989     1,750     2.54     218,298     1,771     1.64  
Other borrowings 70,870     1,766     5.03     70,587     1,504     4.30  
                       
Total Interest-Bearing Liabilities 4,164,491     23,802     1.15     3,689,403     12,217     0.67  
                       
Noninterest demand 1,629,836             1,443,813          
Other liabilities 62,949             29,221          
Total Liabilities 5,857,276             5,162,437          
                       
Shareholders' equity 895,610             702,497          
                       
Total Liabilities & Equity $ 6,752,886             $ 5,864,934          
                       
Cost of deposits         0.72 %           0.36 %
Interest expense as a % of earning assets         0.78 %           0.46 %
Net interest income as a % of earning assets     $ 121,080     3.98 %       $ 100,147     3.78 %
                       
                       
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            
       
      June 30,   March 31,   December 31,   September 30,   June 30,
(Amounts in thousands)   2019   2019   2018   2018   2018
                       
Customer Relationship Funding                    
Noninterest demand                    
Commercial     $ 1,323,743     $ 1,298,468     $ 1,217,842     $ 1,182,018     $ 1,154,225  
Retail     251,879     275,383     259,318     233,472     236,838  
Public funds     65,822     73,640     68,324     42,474     44,182  
Other     28,360     28,518     24,118     30,725     28,407  
Total Noninterest Demand   1,669,804     1,676,009     1,569,602     1,488,689     1,463,652  
                       
Interest-bearing demand                    
Commercial     323,818     289,544     211,879     167,865     181,646  
Retail     634,099     646,522     650,490     655,429     681,615  
Public funds     166,602     164,411     151,663     89,597     113,020  
Total Interest-Bearing Demand   1,124,519     1,100,477     1,014,032     912,891     976,281  
                       
Total transaction accounts                    
Commercial     1,647,561     1,588,012     1,429,721     1,349,883     1,335,871  
Retail     885,978     921,905     909,808     888,901     918,453  
Public funds     232,424     238,051     219,987     132,071     157,202  
Other     28,360     28,518     24,118     30,725     28,407  
Total Transaction Accounts   2,794,323     2,776,486     2,583,634     2,401,580     2,439,933  
                       
Savings     519,732     508,320     493,807     451,958     444,736  
                       
Money market                    
Commercial     517,041     500,649     459,380     423,304     408,005  
Retail     590,320     602,378     607,837     524,415     522,783  
Public funds     65,610     89,043     106,733     89,221     92,382  
Total Money Market   1,172,971     1,192,070     1,173,950     1,036,940     1,023,170  
                       
Brokered time certificates   268,998     367,841     220,594     192,182     228,602  
Other time certificates   785,185     760,861     705,255     560,850     560,999  
    1,054,183     1,128,702     925,849     753,032     789,601  
Total Deposits   $ 5,541,209     $ 5,605,578     $ 5,177,240     $ 4,643,510     $ 4,697,440  
                       
Customer sweep accounts   $ 82,015     $ 148,005     $ 214,323     $ 189,035     $ 200,050  
                       

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 define or 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   Six  Months Ended
                           
(Amounts in thousands, except per share data) 2Q'19   1Q'19   4Q'18   3Q'18   2Q'18   2Q'19   2Q'18
                           
Net Income $ 23,253     $ 22,705     $ 15,962     $ 16,322     $ 16,964     $ 45,958     $ 34,991  
                           
Total noninterest income 13,577     12,836     12,714     12,291     12,721     26,413     25,017  
Securities losses, net 466     9     425     48     48     475     150  
BOLI benefits on death (included in other income)         (280 )                
Total Adjustments to Noninterest Income 466     9     145     48     48     475     150  
Total Adjusted Noninterest Income 14,043     12,845     12,859     12,339     12,769     26,888     25,167  
                           
Total noninterest expense 41,000     43,099     49,464     37,399     38,246     84,099     75,410  
Merger related charges     (335 )   (8,034 )   (482 )   (695 )   (335 )   (1,165 )
Amortization of intangibles (1,456 )   (1,458 )   (1,303 )   (1,004 )   (1,004 )   (2,914 )   (1,993 )
Branch reductions and other expense initiatives (1,517 )   (208 )   (587 )           (1,725 )    
Total Adjustments to Noninterest Expense (2,973 )   (2,001 )   (9,924 )   (1,486 )   (1,699 )   (4,974 )   (3,158 )
Total Adjusted Noninterest Expense 38,027     41,098     39,540     35,913     36,547     79,125     72,252  
                           
Income Taxes 6,909     6,409     4,930     4,358     5,189     13,318     10,971  
Tax effect of adjustments 874     510     2,623     230     443     1,384     981  
Taxes and tax penalties on acquisition-related BOLI redemption         (485 )                
Effect of change in corporate tax rate                         (248 )
Total Adjustments to Income Taxes 874     510     2,138     230     443     1,384     733  
Adjusted Income Taxes 7,783     6,919     7,068     4,588     5,632     14,702     11,704  
Adjusted Net Income $ 25,818     $ 24,205     $ 23,893     $ 17,626     $ 18,268     $ 50,023     $ 37,566  
                           
Earnings per diluted share, as reported $ 0.45     $ 0.44     $ 0.31     $ 0.34     $ 0.35     $ 0.88     $ 0.73  
Adjusted Earnings per Diluted Share 0.50     0.47     0.47     0.37     0.38     0.96     0.79  
Average diluted shares outstanding 51,952     52,039     51,237     48,029     47,974     51,998     47,828  
                           
Adjusted Noninterest Expense $ 38,027     $ 41,098     $ 39,540     $ 35,913     $ 36,547     $ 79,125     $ 72,252  
Foreclosed property expense and net gain/(loss) on sale 174     40         137     (405 )   214     (597 )
Net Adjusted Noninterest Expense $ 38,201     $ 41,138     $ 39,540     $ 36,050     $ 36,142     $ 79,339     $ 71,655  
                           
Revenue $ 73,713     $ 73,610     $ 72,698     $ 63,853     $ 62,928     $ 147,323     $ 124,986  
Total Adjustments to Revenue 466     9     145     48     48     475     150  
Impact of FTE adjustment 83     87     116     147     87     170     178  
Adjusted Revenue on a fully taxable equivalent basis $ 74,262     $ 73,706     $ 72,959     $ 64,048     $ 63,063     $ 147,968     $ 125,314  
Adjusted Efficiency Ratio 51.44 %   55.81 %   54.19 %   56.29 %   57.31 %   53.62 %   57.18 %
                           
Average Assets $ 6,734,994     $ 6,770,978     $ 6,589,870     $ 5,903,327     $ 5,878,035     $ 6,752,886     $ 5,864,934  
Less average goodwill and intangible assets (228,706 )   (230,066 )   (213,713 )   (165,534 )   (166,393 )   (229,382 )   (166,762 )
Average Tangible Assets $ 6,506,288     $ 6,540,912     $ 6,376,157     $ 5,737,793     $ 5,711,642     $ 6,523,504     $ 5,698,172  
                           
Return on Average Assets (ROA) 1.38 %   1.36 %   0.96 %   1.10 %   1.16 %   1.37 %   1.20 %
Impact of removing average intangible assets and related amortization 0.12     0.12     0.09     0.08     0.08     0.12     0.09  
Return on Average Tangible Assets (ROTA) 1.50     1.48     1.05     1.18     1.24     1.49     1.29  
Impact of other adjustments for Adjusted Net Income 0.09     0.02     0.44     0.04     0.04     0.06     0.04  
Adjusted Return on Average Tangible Assets 1.59     1.50     1.49     1.22     1.28     1.55     1.33  
                           
Average Shareholders' Equity $ 911,479     $ 879,564     $ 827,759     $ 728,290     $ 709,674     $ 895,610     $ 702,497  
Less average goodwill and intangible assets (228,706 )   (230,066 )   (213,713 )   (165,534 )   (166,393 )   (229,382 )   (166,762 )
Average Tangible Equity $ 682,773     $ 649,498     $ 614,046     $ 562,756     $ 543,281     $ 666,228     $ 535,735  
                           
Return on Average Shareholders' Equity 10.23 %   10.47 %   7.65 %   8.89 %   9.59 %   10.35 %   10.04 %
Impact of removing average intangible assets and related amortization 4.07     4.39     3.29     3.15     3.49     4.22     3.69  
Return on Average Tangible Common Equity (ROTCE) 14.30     14.86     10.94     12.04     13.08     14.57     13.73  
Impact of other adjustments for Adjusted Net Income 0.87     0.25     4.50     0.39     0.41     0.57     0.41  
Adjusted Return on Average Tangible Common Equity 15.17     15.11     15.44     12.43     13.49     15.14     14.14  
                           
Loan interest income excluding accretion on acquired loans $ 58,169     $ 58,397     $ 55,470     $ 46,349     $ 44,341     $ 116,568     $ 87,817  
Accretion on acquired loans 4,166     3,938     4,089     2,453     2,208     8,103     4,016  
Loan interest income $ 62,335     $ 62,335     $ 59,559     $ 48,802     $ 46,549     $ 124,671     $ 91,833  
                           
                           
                           
                           
GAAP TO NON-GAAP RECONCILIATION   (Unaudited)            
SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES                    
                           
  Quarterly Trends   Six  Months Ended
                           
(Amounts in thousands, except per share data) 2Q'19   1Q'19   4Q'18   3Q'18   2Q'18   2Q'19   2Q'18
                           
Yield on loans excluding accretion on acquired loans 4.82 %   4.89 %   4.77 %   4.59 %   4.50 %   4.86 %   4.53 %
Impact of accretion on acquired loans 0.34     0.33     0.35     0.24     0.23     0.33     0.21  
Yield on loans 5.16     5.22     5.12     4.83     4.73     5.19     4.74  
                           
Net interest income excluding accretion on acquired loans $ 56,053     $ 56,923     $ 56,011     $ 49,256     $ 48,086     $ 116,962     $ 96,131  
Accretion on acquired loans 4,166     3,938     4,089     2,453     2,208     4,118     4,016  
Net Interest Income $ 60,219     $ 60,861     $ 60,100     $ 51,709     $ 50,294     $ 121,080     $ 100,147  
                           
Net interest margin excluding accretion on acquired loans 3.67 %   3.76 %   3.73 %   3.64 %   3.60 %   3.71 %   3.63 %
Impact of accretion on acquired loans 0.27     0.26     0.27     0.18     0.17     0.27     0.15  
Net Interest Margin 3.94     4.02     4.00     3.82     3.77     3.98     3.78  

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

 

 

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