2018 Effective Tax Rate Expected to
Decline From Approximately 35.1% to 23.1%
Seacoast Banking Corporation of Florida (“Seacoast” or “the
Company”) (NASDAQ:SBCF) today reported the expected impact from the
Tax Cuts and Jobs Act of 2017 enacted on December 22, 2017. The
legislation is expected to result in a write down of approximately
$8.0 million to $9.0 million of the Company’s net deferred tax
asset in the fourth quarter of 2017. No significant impact to the
Company’s regulatory capital ratios is expected. Seacoast expects
its effective tax rate to decline from approximately 35.1% to 23.1%
beginning January 1, 2018, an anticipated 18% benefit to earnings
per share.
Dennis S. Hudson, III, Seacoast’s Chairman and
CEO, said “We expect the Tax Cuts and Jobs Act of 2017 will fuel
long-term growth in Florida and Seacoast intends to capitalize on
this tremendous opportunity. The additional financial resources
provided by the tax cut enable Seacoast to make appropriate
additional investments to further accelerate our earnings momentum
toward our Vision 2020 growth objectives and, we believe,
ultimately create further value for our customers, employees and
shareholders.”
Separately, Seacoast announced that it expects
to record a $15.2 million gain on sale of 200,000 shares of Visa
Class B common stock in the fourth quarter of 2017. The
Company acquired the shares from the Federal Deposit Insurance
Corporation during the first quarter of 2017. Seacoast continues to
hold 11,300 shares of Visa Class B common stock. The sale of
the shares provides $21 million in cash to the holding company.
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 $5.3 billion in assets and $4.1 billion
in deposits as of September 30, 2017. The Company provides
integrated financial services including commercial and retail
banking, wealth management, and mortgage services to customers
through advanced banking solutions, 51 traditional branches of its
locally-branded wholly-owned subsidiary bank, Seacoast Bank, and
five commercial banking centers. Offices stretch from Ft.
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.
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 expected impacts of changes to U.S. tax law,
including expectations regarding net deferred tax assets and
earnings per share, future financial and operating results, cost
savings, enhanced revenues, economic and seasonal conditions in our
markets, and improvements to reported earnings that may be realized
from cost controls and for integration of banks that we have
acquired, or expect to acquire, as well as statements with respect
to Seacoast's objectives, expectations and intentions and other
statements that are not historical facts. Actual results may
differ from those set forth in the forward-looking statements.
Forward-looking statements include statements
with respect to our beliefs, plans, objectives, goals,
expectations, anticipations, estimates and intentions, and involve
known and unknown risks, uncertainties and other factors, which may
be beyond our control, and which may cause the actual results,
performance or achievements of Seacoast to be materially different
from future results, performance or achievements expressed or
implied by such forward-looking statements. You should not expect
us to update any forward-looking statements.
You can identify these forward-looking
statements through our use of words such as "may," "will,"
"anticipate," "assume," "should," "support", "indicate," "would,"
"believe," "contemplate," "expect," "estimate," "continue,"
"further", "point to," "project," "could," "intend" or other
similar words and expressions of the future. These forward-looking
statements may not be realized due to a variety of factors,
including, without limitation: the effects of future economic and
market conditions, including seasonality; the risk that Seacoast
may not be able to realize the value of deferred tax assets;
governmental monetary and fiscal policies, 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; 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, 2016, 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 http://www.sec.gov.
Charles M. ShafferExecutive Vice PresidentChief Financial
Officer(772) 221-7003Chuck.Shaffer@seacoastbank.com
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