Seacoast Banking Corporation of Florida (“Seacoast” or the
"Company”) (NASDAQ: SBCF) today reported net income in the first
quarter of 2020 of $0.7 million, or $0.01 per diluted share,
including $4.6 million in merger-related charges and provision for
loan losses of $29.5 million. The net interest margin increased 9
basis points to 3.93%, the ratio of tangible common equity to
tangible assets was 10.68% and Tier 1 capital was 15.5% at
March 31, 2020.
Dennis S. Hudson, III, Seacoast’s Chairman and
CEO, said, “Our results for the first quarter of 2020, as with all
businesses, must be framed within the context of COVID-19 and its
impact on our communities. Our priority in addressing the pandemic
thus far has been to carefully adjust our operations to protect the
health and welfare of our associates and customers while continuing
to offer digital banking products and services that can be accessed
anywhere.”
Hudson added, “With over 90 years’ experience in
an area prone to hurricanes, Seacoast has a robust and well tested
business continuity program that has rapidly mobilized our response
to this crisis. We shifted branch operations to remain open by
drive-thru or lobby appointment only, implemented enhanced cleaning
protocols, and our operational teams are working remotely or in
staggered shifts. As an SBA preferred lender, we are
well-positioned to help our business customers access the Paycheck
Protection Program (“PPP”). We processed over 1,600 loans, totaling
over $388 million in the first round of the program. I am proud of
our team's exceptional effort to support our communities through
this unprecedented time.”
Charles M. Shaffer, Seacoast’s Chief Operating
Officer and Chief Financial Officer, said, “In 2019, Seacoast
delivered record financial performance, driven by our balanced
growth strategy and emphasis on efficient operations. With
extraordinary circumstances now facing all of us, we believe that
we are well-positioned when compared to peers for the challenges
that lie ahead. We enter this period from a position of strength,
with our prior strategic initiatives resulting in a robust capital
base, a diverse loan portfolio and a prudent liquidity position
that should allow us to support our customers despite the uncertain
environment. First quarter results include strong performance
across multiple business lines, including record new asset
acquisition in wealth management and maximizing market
opportunities in mortgage banking. We will continue our commitment
to maintaining a fortress balance sheet, demonstrating resilience
while generating shareholder value over the long term.”
Adoption of CECLOn January 1,
2020, the Company adopted new accounting guidance that introduces
the current expected credit losses (“CECL”) methodology for
estimating allowances for credit losses. The adoption resulted in
an increase to the allowance for credit losses on loans of $21.2
million and an addition to the reserve for unfunded commitments of
$1.8 million. Under the accounting rules, adoption had no impact on
the income statement and resulted in an adjustment to retained
earnings, net of taxes, of $16.9 million. In March 2020, regulatory
guidance was issued that allows banking organizations to delay the
effects of CECL on regulatory capital calculations for two years,
followed by a three-year transition period. As a result,
initial adoption at January 1, 2020 had no impact on the Company’s
regulatory capital ratios.
Acquisition of First Bank of the Palm
BeachesThe purchase of First Bank of the Palm Beaches
("FBPB") in the first quarter of 2020 increases Seacoast’s market
share as the #1 community bank in the attractive Palm Beach market.
FBPB operated two branches, which have converted to Seacoast
branches, with deposits of $174 million and loans of $147 million
at the time of acquisition. The Company increased its allowance for
credit losses at the time of acquisition by $2.3 million, recording
provision for credit losses of $1.8 million. The remaining $0.5
million, which represents the allowance on purchased credit
deteriorated loans, was recorded as part of the purchase price in
accordance with the new CECL guidance.
First Quarter 2020 Financial
Results
Income Statement
- Net income was
$0.7 million, or $0.01 per diluted share, compared to $27.2
million, or $0.52, for the prior quarter and $22.7 million, or
$0.44, for the first quarter of 2019. Adjusted net income1 was $5.5
million, or $0.10 per diluted share, compared to $26.8 million, or
$0.52, for the prior quarter and $24.2 million, or $0.47, for the
first quarter of 2019.
- Net revenues were
$77.9 million, a decrease of $0.3 million compared to the prior
quarter, and an increase of $4.3 million, or 6%, compared to the
first quarter of 2019. Adjusted revenues1 were $77.8 million, an
increase of $2.2 million, or 3%, from the prior quarter and an
increase of $4.2 million, or 6%, from the first quarter of
2019.
- Net interest
income totaled $63.2 million, an increase of $1.4 million,
or 2%, from the prior quarter and an increase of $2.4 million, or
4%, from the first quarter of 2019.
- Net interest
margin was 3.93% in the first quarter of 2020, 3.84% in
the fourth quarter of 2019 and 4.02% in the first quarter of 2019.
Compared to the fourth quarter of 2019, the yield on loans
increased 1 basis point due to an increase in accretion of purchase
discounts on acquired loans offset by the impact of Federal Reserve
rate cuts in March 2020. The effect on net interest margin from
accretion of purchase discounts on acquired loans was 27 basis
points in the first quarter of 2020, compared to 21 basis points in
the fourth quarter of 2019 and 26 basis points in the first quarter
of 2019. Excluding the impact of accretion, the net interest margin
increased 3 basis points from the prior quarter and the yield on
loans contracted 6 basis points. The 13 basis point increase in the
yield on securities reflects prepayment penalties received on early
payoffs of mortgage-backed securities. The cost of deposits
decreased 4 basis points to 0.57%. The full benefit resulting from
reductions in offered customer deposit rates was muted by strategic
efforts to increase brokered deposit funding, bolstering the
Company's liquidity, a prudent action arising from the current
economic environment.
- Noninterest income
totaled $14.7 million, a decrease of $1.7 million, or 10%, compared
to the prior quarter and an increase of $1.9 million, or 14%,
compared to the previous year. Results for the fourth quarter of
2019 included $2.5 million in realized gains on sales of
securities. Other changes in noninterest income compared to the
fourth quarter of 2019 consisted of the following:
- Mortgage banking fees increased
$0.7 million to $2.2 million, reflecting a vibrant residential
refinance market.
- Wealth management income increased
by $0.3 million, or 18%, to a record $1.9 million, with an
additional $44 million in new assets under management acquired in
the first quarter of 2020.
- Other income increased $0.8 million
on higher revenue from SBIC investments.
- SBA gains were lower by $0.4
million, the result of lower production of saleable SBA loans.
- The provision for credit
losses was $29.5 million compared to $4.8 million in the
prior quarter and $1.4 million in the first quarter of 2019. Under
the CECL approach, the Company establishes a reserve for the full
amount of expected credit losses over the life of the loans. The
estimate is based on current conditions and reasonable and
supportable forecasts. The use of CECL requires earlier
recognition, when compared with the previous accounting guidance,
of credit losses that are deemed expected but not yet probable.
Given the uncertainty of the current economic environment,
management applied significant judgment in estimating the impact on
the portfolio of potential economic downturn scenarios, including
the severity and duration of these scenarios and the potential
impact of the government's economic support programs.
- Noninterest
expense was $47.8 million, an increase of $9.7 million, or
26%, compared to the prior quarter and an increase of $4.7 million,
or 11%, from the first quarter of 2019. The first quarter of 2020
included $4.6 million in merger-related charges, including change
in control payments, legal and investment banking fees, and
technology contract termination fees associated with the FBPB and
Fourth Street Banking Company acquisitions. Merger-related charges
are removed from the presentation of adjusted results. Changes from
the fourth quarter of 2019 consisted of the following:
- Salaries, wages, and employee
benefits increased $7.4 million, of which $2.2 million was
acquisition- related. The remaining increase was the result of
recruiting seasoned bankers, a return of payroll taxes and 401(k)
contribution expenses, and the reactivation of incentive accruals,
all in line with prior years' seasonality. Additionally, the first
quarter included $0.3 million in bonuses for retail associates, who
are keeping critical functions operating at full capacity through
this pandemic. Lastly, deferred loan origination costs were
impacted by $0.5 million, the result of fewer loans
originated.
- Legal and professional fees
increased $1.3 million, of which $1.1 million was
acquisition-related.
- Marketing expenses increased by
$0.4 million, reflecting acquisition-related costs of $0.1 million
and first quarter 2020 deposit promotions.
- Data processing costs increased
$1.0 million, including $0.8 million in merger-related data
conversion expenses.
- The sale of a former branch
property resulted in a $0.3 million gain.
- Seacoast recorded $0.2 million of
income tax benefit in the first quarter of 2020,
compared to tax expense of $8.1 million in the prior quarter and
$6.4 million in the first quarter of 2019. Tax benefits related to
stock-based compensation totaled $0.3 million in the first quarter
of 2020, compared to $0.1 million in the fourth quarter of 2019 and
$0.6 million in the first quarter of 2019.
- First quarter adjusted
revenues1 increased 6% compared to prior year quarter
while adjusted noninterest expense1 increased 1%,
generating 5% operating leverage.
- The efficiency
ratio was 59.8% compared to 48.4% in the prior quarter and
56.6% in the first quarter of 2019. The adjusted efficiency ratio1
was 53.6% compared to 47.5% in the preceding quarter, impacted by
typical seasonality, and was 55.8% in the first quarter of
2019.
1Non-GAAP measure, see “Explanation of Certain
Unaudited Non-GAAP Financial Measures" for more information and for
a reconciliation to GAAP.
Balance Sheet
- At March 31, 2020, the Company had total
assets of $7.4 billion and total shareholders' equity of
$991.8 million. Book value per share was $18.82, and tangible book
value per share was $14.42, compared to $19.13 and $14.76,
respectively, at December 31, 2019 and $17.44 and $12.98,
respectively, at March 31, 2019. Year-over-year, tangible book
value per share increased by 11%.
- Debt securities totaled $1.2 billion at
March 31, 2020, a decrease of $45.5 million compared to
December 31, 2019 and a decrease of $10.4 million from
March 31, 2019.
- Loans totaled $5.3 billion at March 31,
2020, an increase of $118.8 million, or 2%, compared to December
31, 2019, and an increase of $488.8 million, or 10%, from
March 31, 2019. Excluding FBPB acquired loans, which were
valued at $146.9 million, loans outstanding declined by $28.1
million, driven by a purposeful slowing of originations during the
quarter as the impact of COVID-19 on our local economies became
apparent.
- Seacoast began accepting applications from customers on Friday,
April 3 for the Paycheck Protection Program ("PPP") established by
the Coronavirus Aid, Relief and Economic Security Act (the "CARES
Act"). In the first round of the program, Seacoast processed over
1,600 loans for its customers, totaling over $388 million. As an
SBA preferred lender, the Company will continue its focus in
helping small businesses access the program in the second
quarter.
- New loan originations were $323.5 million in the first quarter
of 2020, compared to $587.1 million in the fourth quarter of 2019
and $309.8 million in the first quarter of 2019.
- Commercial originations during the first quarter of 2020 were
$183.3 million, compared to $304.3 million in the fourth quarter of
2019 and $186.0 million in the first quarter of 2019.
- Residential loan originations were $88.6 million in the first
quarter of 2020, compared to $126.0 million in the fourth quarter
of 2019 and $82.2 million in the first quarter of 2019.
- Consumer originations in the first quarter of 2020 were $51.5
million, compared to $57.7 million in the fourth quarter of 2019
and $41.6 million in the first quarter of 2019.
- Pipelines (loans in underwriting and approval
or approved and not yet closed) totaled $287.3 million at
March 31, 2020, with notable decreases in commercial and small
business due to COVID-19 and the resulting economic impacts, offset
by continued residential refinancing activity. Early in the second
quarter of 2020, the Company's business bankers and operational
resources have been focused on supporting borrowers with access to
PPP program funds.
- Commercial pipelines were $171.1 million as of March 31,
2020, compared to $277.8 million as of the prior quarter end and
$193.7 million as of March 31, 2019. The decline in pipeline
quarter over quarter was the result of a more selective approach on
new credits given the economic outlook associated with
COVID-19.
- Residential saleable pipelines were $75.2 million as of
March 31, 2020 compared to $19.0 million as of the prior
quarter end and $25.9 million as of March 31, 2019. The
increase reflects the impact of a vibrant refinance market.
- Retained residential pipelines were $11.8 million as of
March 31, 2020, compared to $19.1 million as of the prior
quarter end and $19.3 million as of March 31, 2019. The
decrease is the result of the Company's focus on generating
saleable production.
- Consumer pipelines were $29.1 million as of March 31,
2020, compared to $23.3 million as of the prior quarter end and
$51.3 million as of March 31, 2019.
- Total deposits were $5.9 billion as of
March 31, 2020, an increase of $302.7 million, or 5%,
sequentially and an increase of $281.9 million, or 5%, from the
prior year.
- The acquisition of FBPB contributed $174 million in
deposits.
- The overall cost of deposits declined to 57 basis points in the
first quarter of 2020 from 61 basis points in the prior quarter,
reflecting the impact of rate cuts by the Federal Reserve during
the first quarter of 2020, moderated by the strategic use of
brokered deposits to bolster liquidity.
- Total transaction accounts increased 6% quarter-over-quarter,
including $72.1 million acquired from FBPB. Transaction accounts
continue to represent 50% of overall deposit funding.
- Interest-bearing deposits (interest-bearing demand, savings and
money market deposits) increased year-over-year $112.5 million, or
4%, to $2.9 billion, noninterest-bearing demand deposits increased
$27.6 million, or 2%, to $1.7 billion, and CDs (excluding brokered)
decreased $88.1 million, or 12%, to $672.7 million.
Asset Quality
- Seacoast is supporting the needs of
its communities with access to payment deferral programs for
borrowers experiencing financial hardship. As of April 22,
2020, approximately 2,500 borrowers with $1 billion in outstanding
balances were participating in a payment deferral plan. Our bankers
are taking proactive steps to assist our borrowers in evaluating
their circumstances, planning for cash needs, and identifying CARES
Act and other programs that can provide further support in these
uncertain times. Our relationship-based approach, with bankers that
are deeply knowledgeable about their customers and communities,
will continue to provide valuable information and insight as we
carefully manage credit decisions in the coming months.
- Nonperforming loans to
total loans outstanding
were 0.48% at March 31, 2020, 0.52% at December 31, 2019,
and 0.46% at March 31, 2019.
- Nonperforming assets to
total assets were 0.55% at March 31, 2020, 0.55% at
December 31, 2019 and 0.51% at March 31, 2019. Activity
in other real estate owned included a $5.5 million loan transferred
in, offset by the sale of a $3.3 million former branch
property.
- The ratio
of allowance for credit losses to total loans was 1.61% at
March 31, 2020, 0.68% at December 31, 2019, and 0.68% at
March 31, 2019.
- Net charge-offs
were $1.0 million, or 0.07%, of average loans for the first quarter
of 2020 compared to $3.2 million, or 0.25%, of average loans in the
fourth quarter of 2019 and $1.0 million, or 0.08% of average loans
in the first quarter of 2019. Net charge-offs for the four most
recent quarters averaged 0.16%.
- Portfolio
diversification, in terms of asset mix, industry, and loan
type, has been a critical element of the Company's lending
strategy. Exposure across industries and collateral types is
broadly distributed.
- The Company does not have any
purchased loan syndications, shared national credits, or
mezzanine finance.
- Since the outbreak of COVID-19, the
Company has not experienced any material increase in
consumer or commercial line
utilization.
- The funded balances of the
top 10 and top 20 relationships represented 20%
and 37%, respectively, of total consolidated risk-based capital, a
decrease compared to 27% and 46% three years ago, in the first
quarter of 2017. Seacoast's average commercial loan size is
$375,000.
- Construction and land
development and commercial real estate
loans remain well below regulatory guidance at 35% and
193% of total bank-level risk based capital, respectively, compared
to 40% and 204% respectively, in the fourth quarter of 2019. On a
consolidated basis, construction and land development and
commercial real estate loans represent 32% and 181%, respectively,
of total consolidated risk-based capital.
Capital and Liquidity
- The tier 1 capital
ratio was 15.5%, total capital ratio was
16.5% and the tier 1 leverage ratio was 12.4% at
March 31, 2020
- Tangible common equity to
tangible assets was 10.7% at March 31, 2020, compared
to 11.1% at December 31, 2019 and 10.18% at March 31,
2019.
- Cash and cash equivalents at
March 31, 2020 totaled $314.9 million, an increase of $190.3
million from December 31, 2019.
- At March 31, 2020, the Company
had available unsecured lines of credit of $160.0 million and lines
of credit under lendable collateral value of $1.2 billion. $851.5
million of debt securities and $830.0 million in residential and
commercial real estate loans are available as collateral for
potential borrowings.
| FINANCIAL HIGHLIGHTS |
|
|
|
|
|
|
|
| (Amounts in thousands
except per share data) |
(Unaudited) |
| |
Quarterly
Trends |
| |
|
|
|
|
|
|
|
|
|
| |
1Q'20 |
|
4Q'19 |
|
3Q'19 |
|
2Q'19 |
|
1Q'19 |
| Selected Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
|
Total Assets |
$ |
7,352,894 |
|
|
$ |
7,108,511 |
|
|
$ |
6,890,645 |
|
|
$ |
6,824,886 |
|
|
$ |
6,783,389 |
|
|
Gross Loans |
5,317,208 |
|
|
5,198,404 |
|
|
4,986,289 |
|
|
4,888,139 |
|
|
4,828,441 |
|
|
Total Deposits |
5,887,499 |
|
|
5,584,753 |
|
|
5,673,141 |
|
|
5,541,209 |
|
|
5,605,578 |
|
| |
|
|
|
|
|
|
|
|
|
| Performance Measures: |
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
709 |
|
|
$ |
27,176 |
|
|
$ |
25,605 |
|
|
$ |
23,253 |
|
|
$ |
22,705 |
|
|
Net Interest Margin |
3.93 |
% |
|
3.84 |
% |
|
3.89 |
% |
|
3.94 |
% |
|
4.02 |
% |
|
Average Diluted Shares Outstanding |
52,284 |
|
|
52,081 |
|
|
51,935 |
|
|
51,952 |
|
|
52,039 |
|
|
Diluted Earnings Per Share (EPS) |
$ |
0.01 |
|
|
$ |
0.52 |
|
|
$ |
0.49 |
|
|
$ |
0.45 |
|
|
$ |
0.44 |
|
|
Return on (annualized): |
|
|
|
|
|
|
|
|
|
|
Average Assets (ROA) |
0.04 |
% |
|
1.54 |
% |
|
1.49 |
% |
|
1.38 |
% |
|
1.36 |
% |
|
Average Tangible Assets (ROTA) |
0.11 |
|
|
1.66 |
|
|
1.61 |
|
|
1.50 |
|
|
1.48 |
|
|
Average Tangible Common Equity (ROTCE) |
0.95 |
|
|
14.95 |
|
|
14.73 |
|
|
14.30 |
|
|
14.86 |
|
|
Efficiency Ratio |
59.85 |
|
|
48.36 |
|
|
48.62 |
|
|
53.48 |
|
|
56.55 |
|
| |
|
|
|
|
|
|
|
|
|
| Adjusted Operating Measures1: |
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income |
$ |
5,462 |
|
|
$ |
26,837 |
|
|
$ |
27,731 |
|
|
$ |
25,818 |
|
|
$ |
24,205 |
|
|
Adjusted Diluted EPS |
0.10 |
|
|
0.52 |
|
|
0.53 |
|
|
0.50 |
|
|
0.47 |
|
|
Adjusted ROTA |
0.32 |
% |
|
1.57 |
% |
|
1.67 |
% |
|
1.59 |
% |
|
1.50 |
% |
|
Adjusted ROTCE |
2.86 |
|
|
14.19 |
|
|
15.30 |
|
|
15.17 |
|
|
15.11 |
|
|
Adjusted Efficiency Ratio |
53.61 |
|
|
47.52 |
|
|
48.96 |
|
|
51.44 |
|
|
55.81 |
|
|
Adjusted Noninterest Expense as a Percent of Average Tangible
Assets |
2.44 |
|
|
2.11 |
|
|
2.22 |
|
|
2.34 |
|
|
2.55 |
|
| |
|
|
|
|
|
|
|
|
|
| Other Data: |
|
|
|
|
|
|
|
|
|
|
Market capitalization2 |
$ |
965,097 |
|
|
$ |
1,574,775 |
|
|
$ |
1,303,010 |
|
|
$ |
1,309,158 |
|
|
$ |
1,354,759 |
|
|
Full-time equivalent employees |
919 |
|
|
867 |
|
|
867 |
|
|
852 |
|
|
902 |
|
|
Number of ATMs |
76 |
|
|
78 |
|
|
80 |
|
|
81 |
|
|
84 |
|
|
Full-service banking offices |
50 |
|
|
48 |
|
|
48 |
|
|
49 |
|
|
50 |
|
|
Registered online users |
113,598 |
|
|
109,684 |
|
|
107,241 |
|
|
104,017 |
|
|
102,274 |
|
|
Registered mobile devices |
104,108 |
|
|
99,361 |
|
|
96,384 |
|
|
92,281 |
|
|
87,844 |
|
| 1Non-GAAP measure, see “Explanation of Certain
Unaudited Non-GAAP Financial Measures" for more information and a
reconciliation to GAAP |
| 2Common shares outstanding multiplied by closing
bid price on last day of each period |
| |
Vision 2020
Prior to the emergence of COVID-19, Seacoast was
on track to achieve its announced Vision 2020 performance targets
exiting 2020, which included an efficiency ratio below 50%, return
on tangible assets above 1.30%, and a return on tangible common
equity above 16%. Changes in the outlook for the economy as a
result of COVID-19 will affect achievement of these targets, though
it is difficult to predict to what extent. The Company intends to
continue to carefully manage operating efficiency, maintain prudent
credit oversight and a robust capital position. Although the
business and economic impacts of COVID-19 present obvious
challenges to Seacoast's operating environment, the Company is
confident that its established conservative posture entering this
uncertain period should serve it well.
First Quarter Operating Highlights
Modernizing How Seacoast Sells
- During the first quarter of 2020,
Seacoast introduced digital closing and notarization capabilities
for residential mortgages. This technology allows the borrower,
closing agent, loan officer, witnesses and a notary public to
digitally participate in the electronic signing of all mortgage
documents, enabling secure and fully remote loan closings. This
technology has allowed remote loan closings to occur despite the
stay-at-home orders that have been issued across our
footprint.
- Seacoast's continuous focus on and
recent investments in operational resilience have provided a
reliable experience for customers. Utilization of remote
capabilities, web-enabled conferencing and digital tools ensure
associates can serve their clients safely and effectively.
Lowering Cost to Serve
- At March 31, 2020, deposits per banking center were $118
million, compared to $116 million at December 31, 2019 and
$112 million at March 31, 2019.
- Registered online users have increased by 11% from one year
ago, with the number of registered mobile devices in March
exceeding 100,000. Customers are seeking the convenient security of
mobile banking. Since the beginning of the pandemic, online logins
have increased by 42%, visits to the Seacoast website increased
47%, and customer requests made through the website increased more
than 200%.
Driving Improvements to
Operations
- During the first quarter of 2020, Seacoast completed projects
to improve the speed and quality of the items processing workflow
and scale its source document archiving capabilities through
outsourcing, while redeploying associates to other projects.
- In response to heightened call volumes in the call center,
Seacoast installed a virtual assistant that is allowing customers
to chat with an automated response unit to resolve everyday banking
needs such as checking balances or payments. This technology will
be useful in lowering the cost to serve customers in future
periods.
Scaling and Evolving Seacoast's
Culture
- Seacoast's balanced growth
strategy, combining organic growth with value-creating
acquisitions, continues to benefit shareholders and provide new
opportunities for associates. The purchase of FBPB in the first
quarter of 2020 added experienced bankers in a growing market,
further supporting sustainable, profitable growth. The acquisition
increases Seacoast’s market share as the #1 community bank in the
attractive Palm Beach market, bringing the combined company to over
$821 million in total deposits in Palm Beach County.
- The proposed acquisition of Fourth
Street Banking Company, the holding company for Freedom Bank of St.
Petersburg, is expected to be completed in August 2020, with the
COVID-19 pandemic prompting a delay from the anticipated June
closing.
OTHER INFORMATION
Conference Call
InformationSeacoast will host a conference call on
April 29, 2020 at 10:00 a.m. (Eastern Time) to discuss the
first quarter 2020 earnings results and business trends. Investors
may call in (toll-free) by dialing (888) 517-2513 (passcode: 7733
193; 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 29, 2020 by
dialing (888) 843-7419 (domestic) and using passcode: 7733
193#.
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 29, 2020, 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 $7.4 billion in assets and $5.9 billion
in deposits as of March 31, 2020. 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.
Additional InformationSeacoast
has filed a registration statement on Form S-4 with the United
States Securities and Exchange Commission (the “SEC”) in connection
with the proposed merger of Fourth Street Banking Company (“Fourth
Street”) with and into Seacoast and Freedom Bank with and into
Seacoast Bank. The registration statement in connection with the
Fourth Street merger includes a proxy statement of Fourth Street
and a prospectus of Seacoast. A definitive proxy
statement/prospectus will be mailed to shareholders of Fourth
Street. This communication does not constitute an offer to sell or
the solicitation of an offer to buy any securities or a
solicitation of any vote or approval. WE URGE INVESTORS TO
READ THE PROXY STATEMENTS/PROSPECTUSES AND ANY OTHER DOCUMENTS TO
BE FILED WITH THE SEC IN CONNECTION WITH THE MERGERS OR
INCORPORATED BY REFERENCE IN THE PROXY STATEMENTS/PROSPECTUSES
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
Investors may obtain (when available) these
documents free of charge at the SEC’s Web site (www.sec.gov).
In addition, documents filed with the SEC by Seacoast will be
available free of charge by contacting Investor Relations at (772)
288-6085.
Fourth Street, its directors, and executive
officers and other members of management and employees may be
considered participants in the solicitation of proxies in
connection with the merger of the proposed merger of Fourth Street
with and into Seacoast. Information regarding the participants in
the proxy solicitation of Fourth Street and a description of its
direct and indirect interests, by security holdings or otherwise,
is contained in the proxy statement/prospectus and other relevant
materials to be filed with the SEC.
Cautionary Notice Regarding
Forward-Looking StatementsThis 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, new initiatives and for
integration of banks that we have acquired, or expect to acquire,
including FBPB, 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,
any of which may be impacted by the COVID-19 pandemic and related
effects on the U.S. economy. 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 and the adverse impact of COVID-19 (economic and
otherwise); 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, including the
impact of the adoption of CECL; 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, health
emergencies, epidemics or pandemics, 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.
The risks relating to the FBPB merger and Fourth
Street proposed merger include, without limitation: the timing to
consummate the proposed merger; the risk that a condition to
closing of the proposed merger may not be satisfied; the risk that
the merger is not completed at all; the diversion of management
time on issues related to the proposed merger; unexpected
transaction costs, including the costs of integrating operations;
the risks that the businesses will not be integrated successfully
or that such integration may be more difficult, time- consuming or
costly than expected; the potential failure to fully or timely
realize expected revenues and revenue synergies, including as the
result of revenues following the mergers being lower than expected;
the risk of deposit and customer attrition; any changes in deposit
mix; unexpected operating and other costs, which may differ or
change from expectations; the risks of customer and employee loss
and business disruptions, including, without limitation, as the
result of difficulties in maintaining relationships with employees;
increased competitive pressures and solicitations of customers by
competitors; as well as the difficulties and risks inherent with
entering new markets.
Given the many unknowns and risks being heavily
weighted to the downside, our forward-looking statements are
subject to the risk that conditions will be substantially different
than we are currently expecting. If efforts to contain COVID-19 are
unsuccessful and restrictions on movement last into the third
quarter or beyond, the recession would be much longer and much more
severe. Ineffective fiscal stimulus, or an extended delay in
implementing it, are also major downside risks. The deeper the
recession is, and the longer it lasts, the more it will damage
consumer fundamentals and sentiment. This could both prolong the
recession, and/or make any recovery weaker. Similarly, the
recession could damage business fundamentals. And an extended
global recession due to COVID-19 would weaken the U.S. recovery. As
a result, the outbreak and its consequences, including responsive
measures to manage it, have had and are likely to continue to have
an adverse effect, possibly materially, on our business and
financial performance by adversely affecting, possibly materially,
the demand and profitability of our products and services, the
valuation of assets and our ability to meet the needs of our
customers.
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, 2019, 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 |
| |
|
|
|
|
|
|
|
|
|
| (Amounts in thousands,
except ratios and per share data) |
1Q'20 |
|
4Q'19 |
|
3Q'19 |
|
2Q'19 |
|
1Q'19 |
| |
|
|
|
|
|
|
|
|
|
| Summary of Earnings |
|
|
|
|
|
|
|
|
|
| Net
income |
$ |
709 |
|
|
$ |
27,176 |
|
|
$ |
25,605 |
|
|
$ |
23,253 |
|
|
$ |
22,705 |
|
| Adjusted net income1 |
5,462 |
|
|
26,837 |
|
|
27,731 |
|
|
25,818 |
|
|
24,205 |
|
| Net interest income2 |
63,291 |
|
|
61,846 |
|
|
61,027 |
|
|
60,219 |
|
|
60,861 |
|
| Net interest margin2,3 |
3.93 |
% |
|
3.84 |
% |
|
3.89 |
% |
|
3.94 |
% |
|
4.02 |
% |
| |
|
|
|
|
|
|
|
|
|
| Performance Ratios |
|
|
|
|
|
|
|
|
|
| Return on average assets-GAAP basis3 |
0.04 |
% |
|
1.54 |
% |
|
1.49 |
% |
|
1.38 |
% |
|
1.36 |
% |
| Return on average tangible assets-GAAP basis3,4 |
0.11 |
|
|
1.66 |
|
|
1.61 |
|
|
1.50 |
|
|
1.48 |
|
| Adjusted return on average tangible assets1,3,4 |
0.32 |
|
|
1.57 |
|
|
1.67 |
|
|
1.59 |
|
|
1.50 |
|
| |
|
|
|
|
|
|
|
|
|
| Return on average shareholders' equity-GAAP basis3 |
0.29 |
|
|
11.04 |
|
|
10.73 |
|
|
10.23 |
|
|
10.47 |
|
| Return on average tangible common equity-GAAP basis3,4 |
0.95 |
|
|
14.95 |
|
|
14.73 |
|
|
14.30 |
|
|
14.86 |
|
| Adjusted return on average tangible common equity1,3,4 |
2.86 |
|
|
14.19 |
|
|
15.30 |
|
|
15.17 |
|
|
15.11 |
|
| Efficiency ratio5 |
59.85 |
|
|
48.36 |
|
|
48.62 |
|
|
53.48 |
|
|
56.55 |
|
| Adjusted efficiency ratio1 |
53.61 |
|
|
47.52 |
|
|
48.96 |
|
|
51.44 |
|
|
55.81 |
|
| Noninterest income to total revenue (excluding securities
gains/losses) |
18.84 |
|
|
18.30 |
|
|
19.53 |
|
|
18.93 |
|
|
17.45 |
|
| Tangible common equity to tangible assets4 |
10.68 |
|
|
11.05 |
|
|
11.05 |
|
|
10.65 |
|
|
10.18 |
|
| Average loan-to-deposit ratio |
93.02 |
|
|
90.71 |
|
|
88.35 |
|
|
87.27 |
|
|
90.55 |
|
| End of period loan-to-deposit ratio |
90.81 |
|
|
93.44 |
|
|
88.36 |
|
|
88.53 |
|
|
86.38 |
|
| |
|
|
|
|
|
|
|
|
|
| Per Share Data |
|
|
|
|
|
|
|
|
|
| Net income diluted-GAAP basis |
$ |
0.01 |
|
|
$ |
0.52 |
|
|
$ |
0.49 |
|
|
$ |
0.45 |
|
|
$ |
0.44 |
|
| Net income basic-GAAP basis |
0.01 |
|
|
0.53 |
|
|
0.50 |
|
|
0.45 |
|
|
0.44 |
|
| Adjusted earnings1 |
0.10 |
|
|
0.52 |
|
|
0.53 |
|
|
0.50 |
|
|
0.47 |
|
| |
|
|
|
|
|
|
|
|
|
| Book value per share common |
18.82 |
|
|
19.13 |
|
|
18.70 |
|
|
18.08 |
|
|
17.44 |
|
| Tangible book value per share |
14.42 |
|
|
14.76 |
|
|
14.30 |
|
|
13.65 |
|
|
12.98 |
|
| Cash dividends declared |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| 1Non-GAAP measure - see "Explanation of Certain
Unaudited Non-GAAP Financial Measures" for more information and a
reconciliation to GAAP. |
| 2Calculated on a fully taxable equivalent basis
using amortized cost. |
| 3These ratios are stated on an annualized basis
and are not necessarily indicative of future periods. |
| 4The Company defines tangible assets as total
assets less intangible assets, and tangible common equity as total
shareholders' equity less intangible assets. |
| 5Defined 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 and losses). |
| |
| CONDENSED
CONSOLIDATED STATEMENTS OF INCOME |
|
|
|
|
(Unaudited) |
|
|
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| |
Quarterly
Trends |
| |
|
|
|
|
|
|
|
|
|
| (Amounts in thousands,
except per share data) |
1Q'20 |
|
4Q'19 |
|
3Q'19 |
|
2Q'19 |
|
1Q'19 |
| |
|
|
|
|
|
|
|
|
|
| Interest on securities: |
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
8,696 |
|
|
$ |
8,500 |
|
|
$ |
8,802 |
|
|
$ |
8,933 |
|
|
$ |
9,119 |
|
|
Nontaxable |
122 |
|
|
130 |
|
|
131 |
|
|
143 |
|
|
151 |
|
| Interest and fees on loans |
63,440 |
|
|
62,868 |
|
|
63,092 |
|
|
62,288 |
|
|
62,287 |
|
| Interest on federal funds sold and other investments |
734 |
|
|
788 |
|
|
800 |
|
|
873 |
|
|
918 |
|
|
Total Interest Income |
72,992 |
|
|
72,286 |
|
|
72,825 |
|
|
72,237 |
|
|
72,475 |
|
| |
|
|
|
|
|
|
|
|
|
| Interest on deposits |
3,190 |
|
|
3,589 |
|
|
4,334 |
|
|
4,825 |
|
|
3,873 |
|
| Interest on time certificates |
4,768 |
|
|
5,084 |
|
|
6,009 |
|
|
5,724 |
|
|
4,959 |
|
| Interest on borrowed money |
1,857 |
|
|
1,853 |
|
|
1,534 |
|
|
1,552 |
|
|
2,869 |
|
|
Total Interest Expense |
9,815 |
|
|
10,526 |
|
|
11,877 |
|
|
12,101 |
|
|
11,701 |
|
| |
|
|
|
|
|
|
|
|
|
|
Net Interest Income |
63,177 |
|
|
61,760 |
|
|
60,948 |
|
|
60,136 |
|
|
60,774 |
|
| Provision for credit losses |
29,513 |
|
|
4,800 |
|
|
2,251 |
|
|
2,551 |
|
|
1,397 |
|
|
Net Interest Income After Provision for Credit
Losses |
33,664 |
|
|
56,960 |
|
|
58,697 |
|
|
57,585 |
|
|
59,377 |
|
| |
|
|
|
|
|
|
|
|
|
| Noninterest income: |
|
|
|
|
|
|
|
|
|
| Service charges on deposit accounts |
2,825 |
|
|
2,960 |
|
|
2,978 |
|
|
2,894 |
|
|
2,697 |
|
| Interchange income |
3,246 |
|
|
3,387 |
|
|
3,206 |
|
|
3,405 |
|
|
3,401 |
|
| Wealth management income |
1,867 |
|
|
1,579 |
|
|
1,632 |
|
|
1,688 |
|
|
1,453 |
|
| Mortgage banking fees |
2,208 |
|
|
1,514 |
|
|
2,127 |
|
|
1,734 |
|
|
1,115 |
|
| Marine finance fees |
146 |
|
|
338 |
|
|
153 |
|
|
201 |
|
|
362 |
|
| SBA gains |
139 |
|
|
576 |
|
|
569 |
|
|
691 |
|
|
636 |
|
| BOLI income |
886 |
|
|
904 |
|
|
928 |
|
|
927 |
|
|
915 |
|
| Other |
3,352 |
|
|
2,579 |
|
|
3,197 |
|
|
2,503 |
|
|
2,266 |
|
| |
14,669 |
|
|
13,837 |
|
|
14,790 |
|
|
14,043 |
|
|
12,845 |
|
| Securities gains (losses), net |
19 |
|
|
2,539 |
|
|
(847 |
) |
|
(466 |
) |
|
(9 |
) |
|
Total Noninterest Income |
14,688 |
|
|
16,376 |
|
|
13,943 |
|
|
13,577 |
|
|
12,836 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Noninterest expenses: |
|
|
|
|
|
|
|
|
|
| Salaries and wages |
23,698 |
|
|
17,263 |
|
|
18,640 |
|
|
19,420 |
|
|
18,506 |
|
| Employee benefits |
4,255 |
|
|
3,323 |
|
|
2,973 |
|
|
3,195 |
|
|
4,206 |
|
| Outsourced data processing costs |
4,633 |
|
|
3,645 |
|
|
3,711 |
|
|
3,876 |
|
|
3,845 |
|
| Telephone / data lines |
714 |
|
|
651 |
|
|
603 |
|
|
893 |
|
|
811 |
|
| Occupancy |
3,353 |
|
|
3,368 |
|
|
3,368 |
|
|
3,741 |
|
|
3,807 |
|
| Furniture and equipment |
1,623 |
|
|
1,416 |
|
|
1,528 |
|
|
1,544 |
|
|
1,757 |
|
| Marketing |
1,278 |
|
|
885 |
|
|
933 |
|
|
1,211 |
|
|
1,132 |
|
| Legal and professional fees |
3,363 |
|
|
2,025 |
|
|
1,648 |
|
|
2,033 |
|
|
2,847 |
|
| FDIC assessments |
— |
|
|
— |
|
|
56 |
|
|
337 |
|
|
488 |
|
| Amortization of intangibles |
1,456 |
|
|
1,456 |
|
|
1,456 |
|
|
1,456 |
|
|
1,458 |
|
| Foreclosed property expense and net (gain)/loss on sale |
(315 |
) |
|
3 |
|
|
262 |
|
|
(174 |
) |
|
(40 |
) |
| Other |
3,740 |
|
|
4,022 |
|
|
3,405 |
|
|
3,468 |
|
|
4,282 |
|
|
Total Noninterest Expense |
47,798 |
|
|
38,057 |
|
|
38,583 |
|
|
41,000 |
|
|
43,099 |
|
| |
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes |
554 |
|
|
35,279 |
|
|
34,057 |
|
|
30,162 |
|
|
29,114 |
|
| Income taxes |
(155 |
) |
|
8,103 |
|
|
8,452 |
|
|
6,909 |
|
|
6,409 |
|
| |
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
709 |
|
|
$ |
27,176 |
|
|
$ |
25,605 |
|
|
$ |
23,253 |
|
|
$ |
22,705 |
|
| |
|
|
|
|
|
|
|
|
|
| Per share of common stock: |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Net income diluted |
$ |
0.01 |
|
|
$ |
0.52 |
|
|
$ |
0.49 |
|
|
$ |
0.45 |
|
|
$ |
0.44 |
|
| Net income basic |
0.01 |
|
|
0.53 |
|
|
0.50 |
|
|
0.45 |
|
|
0.44 |
|
| Cash dividends declared |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
| Average diluted shares outstanding |
52,284 |
|
|
52,081 |
|
|
51,935 |
|
|
51,952 |
|
|
52,039 |
|
| Average basic shares outstanding |
51,803 |
|
|
51,517 |
|
|
51,473 |
|
|
51,446 |
|
|
51,359 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
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) |
2020 |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
| |
|
|
|
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
82,111 |
|
|
$ |
89,843 |
|
|
$ |
106,349 |
|
|
$ |
97,792 |
|
|
$ |
98,270 |
|
|
Interest bearing deposits with other banks |
232,763 |
|
|
34,688 |
|
|
25,911 |
|
|
61,987 |
|
|
105,741 |
|
|
Total Cash and Cash Equivalents |
314,874 |
|
|
124,531 |
|
|
132,260 |
|
|
159,779 |
|
|
204,011 |
|
| |
|
|
|
|
|
|
|
|
|
|
Time deposits with other banks |
3,742 |
|
|
3,742 |
|
|
4,579 |
|
|
4,980 |
|
|
8,174 |
|
| |
|
|
|
|
|
|
|
|
|
|
Debt Securities: |
|
|
|
|
|
|
|
|
|
|
Available for sale (at fair value) |
910,311 |
|
|
946,855 |
|
|
920,811 |
|
|
914,615 |
|
|
877,549 |
|
|
Held to maturity (at amortized cost) |
252,373 |
|
|
261,369 |
|
|
273,644 |
|
|
287,302 |
|
|
295,485 |
|
|
Total Debt Securities |
1,162,684 |
|
|
1,208,224 |
|
|
1,194,455 |
|
|
1,201,917 |
|
|
1,173,034 |
|
| |
|
|
|
|
|
|
|
|
|
|
Loans held for sale |
29,281 |
|
|
20,029 |
|
|
26,768 |
|
|
17,513 |
|
|
13,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
5,317,208 |
|
|
5,198,404 |
|
|
4,986,289 |
|
|
4,888,139 |
|
|
4,828,441 |
|
|
Less: Allowance for credit losses |
(85,411 |
) |
|
(35,154 |
) |
|
(33,605 |
) |
|
(33,505 |
) |
|
(32,822 |
) |
|
Net Loans |
5,231,797 |
|
|
5,163,250 |
|
|
4,952,684 |
|
|
4,854,634 |
|
|
4,795,619 |
|
| |
|
|
|
|
|
|
|
|
|
|
Bank premises and equipment, net |
71,540 |
|
|
66,615 |
|
|
67,873 |
|
|
68,738 |
|
|
70,412 |
|
|
Other real estate owned |
14,640 |
|
|
12,390 |
|
|
13,593 |
|
|
11,043 |
|
|
11,921 |
|
|
Goodwill |
212,085 |
|
|
205,286 |
|
|
205,286 |
|
|
205,260 |
|
|
205,260 |
|
|
Other intangible assets, net |
19,461 |
|
|
20,066 |
|
|
21,318 |
|
|
22,672 |
|
|
23,959 |
|
|
Bank owned life insurance |
127,067 |
|
|
126,181 |
|
|
125,277 |
|
|
125,233 |
|
|
124,306 |
|
|
Net deferred tax assets |
19,766 |
|
|
16,457 |
|
|
17,168 |
|
|
19,353 |
|
|
24,647 |
|
|
Other assets |
145,957 |
|
|
141,740 |
|
|
129,384 |
|
|
133,764 |
|
|
128,146 |
|
|
Total Assets |
$ |
7,352,894 |
|
|
$ |
7,108,511 |
|
|
$ |
6,890,645 |
|
|
$ |
6,824,886 |
|
|
$ |
6,783,389 |
|
| |
|
|
|
|
|
|
|
|
|
| Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
Noninterest demand |
$ |
1,703,628 |
|
|
$ |
1,590,493 |
|
|
$ |
1,652,927 |
|
|
$ |
1,669,804 |
|
|
$ |
1,676,009 |
|
|
Interest-bearing demand |
1,234,193 |
|
|
1,181,732 |
|
|
1,115,455 |
|
|
1,124,519 |
|
|
1,100,477 |
|
|
Savings |
554,836 |
|
|
519,152 |
|
|
528,214 |
|
|
519,732 |
|
|
508,320 |
|
|
Money market |
1,124,378 |
|
|
1,108,363 |
|
|
1,158,862 |
|
|
1,172,971 |
|
|
1,192,070 |
|
|
Other time certificates |
489,669 |
|
|
504,837 |
|
|
537,183 |
|
|
553,107 |
|
|
539,202 |
|
|
Brokered time certificates |
597,715 |
|
|
472,857 |
|
|
458,418 |
|
|
268,998 |
|
|
367,841 |
|
|
Time certificates of more than $250,000 |
183,080 |
|
|
207,319 |
|
|
222,082 |
|
|
232,078 |
|
|
221,659 |
|
|
Total Deposits |
5,887,499 |
|
|
5,584,753 |
|
|
5,673,141 |
|
|
5,541,209 |
|
|
5,605,578 |
|
| |
|
|
|
|
|
|
|
|
|
|
Securities sold under agreements to repurchase |
64,723 |
|
|
86,121 |
|
|
70,414 |
|
|
82,015 |
|
|
148,005 |
|
|
Federal Home Loan Bank borrowings |
265,000 |
|
|
315,000 |
|
|
50,000 |
|
|
140,000 |
|
|
3,000 |
|
|
Subordinated debt |
71,155 |
|
|
71,085 |
|
|
71,014 |
|
|
70,944 |
|
|
70,874 |
|
|
Other liabilities |
72,730 |
|
|
65,913 |
|
|
63,398 |
|
|
60,479 |
|
|
59,508 |
|
|
Total Liabilities |
6,361,107 |
|
|
6,122,872 |
|
|
5,927,967 |
|
|
5,894,647 |
|
|
5,886,965 |
|
| |
|
|
|
|
|
|
|
|
|
| Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
Common stock |
5,271 |
|
|
5,151 |
|
|
5,148 |
|
|
5,146 |
|
|
5,141 |
|
|
Additional paid in capital |
809,533 |
|
|
786,242 |
|
|
784,661 |
|
|
782,928 |
|
|
780,680 |
|
|
Retained earnings |
179,646 |
|
|
195,813 |
|
|
168,637 |
|
|
143,032 |
|
|
119,779 |
|
|
Treasury stock |
(7,422 |
) |
|
(6,032 |
) |
|
(6,079 |
) |
|
(6,137 |
) |
|
(4,959 |
) |
| |
987,028 |
|
|
981,174 |
|
|
952,367 |
|
|
924,969 |
|
|
900,641 |
|
|
Accumulated other comprehensive income/(loss), net |
4,759 |
|
|
4,465 |
|
|
10,311 |
|
|
5,270 |
|
|
(4,217 |
) |
|
Total Shareholders' Equity |
991,787 |
|
|
985,639 |
|
|
962,678 |
|
|
930,239 |
|
|
896,424 |
|
|
Total Liabilities & Shareholders' Equity |
$ |
7,352,894 |
|
|
$ |
7,108,511 |
|
|
$ |
6,890,645 |
|
|
$ |
6,824,886 |
|
|
$ |
6,783,389 |
|
| |
|
|
|
|
|
|
|
|
|
| Common shares outstanding |
52,709 |
|
|
51,514 |
|
|
51,482 |
|
|
51,461 |
|
|
51,414 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED QUARTERLY FINANCIAL DATA |
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
| SEACOAST BANKING CORPORATION
OF FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
| |
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands) |
1Q'20 |
|
4Q'19 |
|
3Q'19 |
|
2Q'19 |
|
1Q'19 |
| |
|
|
|
|
|
|
|
|
|
| Credit
Analysis |
|
|
|
|
|
|
|
|
|
|
Net charge-offs - non-acquired loans |
$ |
1,316 |
|
|
$ |
2,930 |
|
|
$ |
2,106 |
|
|
$ |
1,621 |
|
|
$ |
762 |
|
|
Net (recoveries) charge-offs - acquired loans |
(342 |
) |
|
295 |
|
|
5 |
|
|
220 |
|
|
201 |
|
|
Total Net Charge-offs |
974 |
|
|
3,225 |
|
|
2,111 |
|
|
1,841 |
|
|
963 |
|
| |
|
|
|
|
|
|
|
|
|
|
TDR valuation adjustments |
$ |
24 |
|
|
$ |
27 |
|
|
$ |
40 |
|
|
$ |
27 |
|
|
$ |
35 |
|
| |
|
|
|
|
|
|
|
|
|
|
Net charge-offs to average loans - non-acquired loans |
0.10 |
% |
|
0.23 |
% |
|
0.17 |
% |
|
0.13 |
% |
|
0.06 |
% |
|
Net (recoveries) charge-offs to average loans - acquired loans |
(0.03 |
) |
|
0.02 |
|
|
— |
|
|
0.02 |
|
|
0.02 |
|
|
Total Net Charge-offs to Average Loans |
0.07 |
|
|
0.25 |
|
|
0.17 |
|
|
0.15 |
|
|
0.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses - non-acquired loans |
$ |
25,688 |
|
|
$ |
4,041 |
|
|
$ |
2,241 |
|
|
$ |
2,326 |
|
|
$ |
1,709 |
|
|
Provision for (recapture of) credit losses - acquired loans |
3,825 |
|
|
759 |
|
|
10 |
|
|
225 |
|
|
(312 |
) |
|
Total Provision for Credit Losses |
$ |
29,513 |
|
|
$ |
4,800 |
|
|
$ |
2,251 |
|
|
$ |
2,551 |
|
|
$ |
1,397 |
|
| |
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses - non-acquired loans |
$ |
69,498 |
|
|
$ |
34,573 |
|
|
$ |
33,488 |
|
|
$ |
33,393 |
|
|
$ |
32,715 |
|
|
Allowance for credit losses - acquired loans |
15,913 |
|
|
581 |
|
|
117 |
|
|
112 |
|
|
107 |
|
|
Total Allowance for Credit Losses1 |
$ |
85,411 |
|
|
$ |
35,154 |
|
|
$ |
33,605 |
|
|
$ |
33,505 |
|
|
$ |
32,822 |
|
| |
|
|
|
|
|
|
|
|
|
|
Non-acquired loans at end of period |
$ |
4,373,378 |
|
|
$ |
4,317,919 |
|
|
$ |
4,010,299 |
|
|
$ |
3,817,358 |
|
|
$ |
3,667,221 |
|
|
Acquired loans at end of period |
943,830 |
|
|
880,485 |
|
|
975,990 |
|
|
1,070,781 |
|
|
1,161,220 |
|
|
Total Loans |
$ |
5,317,208 |
|
|
$ |
5,198,404 |
|
|
$ |
4,986,289 |
|
|
$ |
4,888,139 |
|
|
$ |
4,828,441 |
|
| |
|
|
|
|
|
|
|
|
|
| Non-acquired loans allowance
for credit losses to non-acquired loans at end of period |
1.59 |
% |
|
0.80 |
% |
|
0.84 |
% |
|
0.87 |
% |
|
0.89 |
% |
| Total allowance for credit
losses to total loans at end of period |
1.61 |
|
|
0.68 |
|
|
0.67 |
|
|
0.69 |
|
|
0.68 |
|
| Purchase discount on acquired
loans at end of period |
3.36 |
|
|
3.83 |
|
|
3.76 |
|
|
3.76 |
|
|
3.80 |
|
| |
|
|
|
|
|
|
|
|
|
| End of
Period |
|
|
|
|
|
|
|
|
|
|
Nonperforming loans - non-acquired |
$ |
17,898 |
|
|
$ |
20,990 |
|
|
$ |
20,400 |
|
|
$ |
15,810 |
|
|
$ |
15,423 |
|
|
Nonperforming loans - acquired |
7,684 |
|
|
5,965 |
|
|
5,644 |
|
|
6,986 |
|
|
6,990 |
|
|
Other real estate owned - non-acquired |
10,676 |
|
|
5,177 |
|
|
5,177 |
|
|
66 |
|
|
831 |
|
|
Other real estate owned - acquired |
372 |
|
|
372 |
|
|
1,574 |
|
|
1,612 |
|
|
1,725 |
|
|
Bank branches closed included in other real estate owned |
3,592 |
|
|
6,842 |
|
|
6,842 |
|
|
9,365 |
|
|
9,365 |
|
|
Total Nonperforming Assets |
$ |
40,222 |
|
|
$ |
39,346 |
|
|
$ |
39,637 |
|
|
$ |
33,839 |
|
|
$ |
34,334 |
|
| |
|
|
|
|
|
|
|
|
|
|
Restructured loans (accruing) |
$ |
10,833 |
|
|
$ |
11,100 |
|
|
$ |
12,395 |
|
|
$ |
14,534 |
|
|
$ |
14,857 |
|
| |
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to loans at end of period - non-acquired |
0.41 |
% |
|
0.49 |
% |
|
0.51 |
% |
|
0.41 |
% |
|
0.42 |
% |
|
Nonperforming loans to loans at end of period - acquired |
0.81 |
|
|
0.68 |
|
|
0.58 |
|
|
0.65 |
|
|
0.60 |
|
|
Total Nonperforming Loans to Loans at End of Period |
0.48 |
|
|
0.52 |
|
|
0.52 |
|
|
0.47 |
|
|
0.46 |
|
| |
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets - non-acquired |
0.44 |
% |
|
0.46 |
% |
|
0.47 |
% |
|
0.37 |
% |
|
0.38 |
% |
|
Nonperforming assets to total assets - acquired |
0.11 |
|
|
0.09 |
|
|
0.11 |
|
|
0.13 |
|
|
0.13 |
|
|
Total Nonperforming Assets to Total Assets |
0.55 |
|
|
0.55 |
|
|
0.58 |
|
|
0.50 |
|
|
0.51 |
|
| |
|
|
|
|
|
|
|
|
|
| |
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
| Loans |
2020 |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
| |
|
|
|
|
|
|
|
|
|
| Construction and land
development |
$ |
295,405 |
|
|
$ |
325,113 |
|
|
$ |
326,324 |
|
|
$ |
379,991 |
|
|
$ |
417,565 |
|
| Commercial real estate - owner
occupied |
1,082,893 |
|
|
1,034,963 |
|
|
1,025,040 |
|
|
1,005,876 |
|
|
989,234 |
|
| Commercial real estate -
non-owner occupied |
1,381,096 |
|
|
1,344,008 |
|
|
1,285,327 |
|
|
1,184,409 |
|
|
1,173,183 |
|
| Residential real estate |
1,559,754 |
|
|
1,507,863 |
|
|
1,409,946 |
|
|
1,400,184 |
|
|
1,329,166 |
|
| Consumer |
202,022 |
|
|
208,205 |
|
|
217,366 |
|
|
215,932 |
|
|
206,414 |
|
| Commercial and financial |
796,038 |
|
|
778,252 |
|
|
722,286 |
|
|
701,747 |
|
|
712,879 |
|
|
Total Loans |
$ |
5,317,208 |
|
|
$ |
5,198,404 |
|
|
$ |
4,986,289 |
|
|
$ |
4,888,139 |
|
|
$ |
4,828,441 |
|
|
|
|
|
|
|
|
|
|
|
|
| 1See section
titled "Current Expected Credit Losses ("CECL") Adopted on January
1, 2020 |
| |
| AVERAGE
BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES
1 |
(Unaudited) |
|
|
|
|
|
|
| SEACOAST
BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
1Q'20 |
|
4Q'19 |
|
1Q'19 |
| |
Average |
|
|
|
Yield/ |
|
Average |
|
|
|
Yield/ |
|
Average |
|
|
|
Yield/ |
|
(Amounts in thousands) |
Balance |
|
Interest |
|
Rate |
|
Balance |
|
Interest |
|
Rate |
|
Balance |
|
Interest |
|
Rate |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
1,152,473 |
|
|
$ |
8,696 |
|
|
3.02 |
% |
|
$ |
1,179,843 |
|
|
$ |
8,500 |
|
|
2.88 |
% |
|
$ |
1,186,374 |
|
|
$ |
9,119 |
|
|
3.07 |
% |
|
Nontaxable |
19,740 |
|
|
152 |
|
|
3.09 |
|
|
20,709 |
|
|
162 |
|
|
3.13 |
|
|
26,561 |
|
|
190 |
|
|
2.86 |
|
|
Total Securities |
1,172,213 |
|
|
8,848 |
|
|
3.02 |
|
|
1,200,552 |
|
|
8,662 |
|
|
2.89 |
|
|
1,212,935 |
|
|
9,309 |
|
|
3.07 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and other investments |
87,924 |
|
|
734 |
|
|
3.36 |
|
|
84,961 |
|
|
788 |
|
|
3.68 |
|
|
91,136 |
|
|
918 |
|
|
4.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net |
5,215,234 |
|
|
63,524 |
|
|
4.90 |
|
|
5,104,272 |
|
|
62,922 |
|
|
4.89 |
|
|
4,839,046 |
|
|
62,335 |
|
|
5.22 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Earning Assets |
6,475,371 |
|
|
73,106 |
|
|
4.54 |
|
|
6,389,785 |
|
|
72,372 |
|
|
4.49 |
|
|
6,143,117 |
|
|
72,562 |
|
|
4.79 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses |
(56,931 |
) |
|
|
|
|
|
(34,072 |
) |
|
|
|
|
|
(32,966 |
) |
|
|
|
|
|
Cash and due from banks |
90,084 |
|
|
|
|
|
|
99,008 |
|
|
|
|
|
|
99,940 |
|
|
|
|
|
|
Premises and equipment |
67,585 |
|
|
|
|
|
|
67,485 |
|
|
|
|
|
|
70,938 |
|
|
|
|
|
|
Intangible assets |
226,712 |
|
|
|
|
|
|
226,060 |
|
|
|
|
|
|
230,066 |
|
|
|
|
|
|
Bank owned life insurance |
126,492 |
|
|
|
|
|
|
125,597 |
|
|
|
|
|
|
123,708 |
|
|
|
|
|
|
Other assets |
126,230 |
|
|
|
|
|
|
122,351 |
|
|
|
|
|
|
136,175 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
$ |
7,055,543 |
|
|
|
|
|
|
$ |
6,996,214 |
|
|
|
|
|
|
$ |
6,770,978 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
$ |
1,173,930 |
|
|
$ |
834 |
|
|
0.29 |
% |
|
$ |
1,190,681 |
|
|
$ |
983 |
|
|
0.33 |
% |
|
$ |
1,029,726 |
|
|
$ |
839 |
|
|
0.33 |
% |
|
Savings |
526,727 |
|
|
348 |
|
|
0.27 |
|
|
528,771 |
|
|
422 |
|
|
0.32 |
|
|
500,347 |
|
|
477 |
|
|
0.39 |
|
|
Money market |
1,128,757 |
|
|
2,008 |
|
|
0.72 |
|
|
1,148,453 |
|
|
2,184 |
|
|
0.75 |
|
|
1,158,939 |
|
|
2,557 |
|
|
0.89 |
|
|
Time deposits |
1,151,750 |
|
|
4,768 |
|
|
1.67 |
|
|
1,078,297 |
|
|
5,084 |
|
|
1.87 |
|
|
1,042,346 |
|
|
4,959 |
|
|
1.93 |
|
|
Securities sold under agreements to repurchase |
71,065 |
|
|
167 |
|
|
0.95 |
|
|
73,693 |
|
|
226 |
|
|
1.22 |
|
|
185,032 |
|
|
550 |
|
|
1.21 |
|
|
Federal funds purchased and Federal Home Loan Bank
borrowings |
250,022 |
|
|
968 |
|
|
1.56 |
|
|
181,134 |
|
|
845 |
|
|
1.85 |
|
|
227,378 |
|
|
1,421 |
|
|
2.53 |
|
|
Other borrowings |
71,114 |
|
|
722 |
|
|
4.08 |
|
|
71,045 |
|
|
782 |
|
|
4.37 |
|
|
70,836 |
|
|
898 |
|
|
5.14 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Interest-Bearing Liabilities |
4,373,365 |
|
|
9,815 |
|
|
0.90 |
|
|
4,272,074 |
|
|
10,526 |
|
|
0.98 |
|
|
4,214,604 |
|
|
11,701 |
|
|
1.13 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest demand |
1,625,215 |
|
|
|
|
|
|
1,680,734 |
|
|
|
|
|
|
1,612,548 |
|
|
|
|
|
|
Other liabilities |
62,970 |
|
|
|
|
|
|
67,206 |
|
|
|
|
|
|
64,262 |
|
|
|
|
|
|
Total Liabilities |
6,061,550 |
|
|
|
|
|
|
6,020,014 |
|
|
|
|
|
|
5,891,414 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
993,993 |
|
|
|
|
|
|
976,200 |
|
|
|
|
|
|
879,564 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities & Equity |
$ |
7,055,543 |
|
|
|
|
|
|
$ |
6,996,214 |
|
|
|
|
|
|
$ |
6,770,978 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of deposits |
|
|
|
|
0.57 |
% |
|
|
|
|
|
0.61 |
% |
|
|
|
|
|
0.67 |
% |
| Interest expense as a % of
earning assets |
|
|
|
|
0.61 |
% |
|
|
|
|
|
0.65 |
% |
|
|
|
|
|
0.77 |
% |
| Net interest income as a % of
earning assets |
|
|
$ |
63,291 |
|
|
3.93 |
% |
|
|
|
$ |
61,846 |
|
|
3.84 |
% |
|
|
|
$ |
60,861 |
|
|
4.02 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1On 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) |
2020 |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
| |
|
|
|
|
|
|
|
|
|
| Customer Relationship Funding |
|
|
|
|
|
|
|
|
|
|
Noninterest demand |
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
1,336,352 |
|
|
$ |
1,233,475 |
|
|
$ |
1,314,102 |
|
|
$ |
1,323,743 |
|
|
$ |
1,298,468 |
|
|
Retail |
271,916 |
|
|
246,717 |
|
|
241,734 |
|
|
251,879 |
|
|
275,383 |
|
|
Public funds |
71,029 |
|
|
85,122 |
|
|
65,869 |
|
|
65,822 |
|
|
73,640 |
|
|
Other |
24,331 |
|
|
25,179 |
|
|
31,222 |
|
|
28,360 |
|
|
28,518 |
|
|
Total Noninterest Demand |
1,703,628 |
|
|
1,590,493 |
|
|
1,652,927 |
|
|
1,669,804 |
|
|
1,676,009 |
|
| |
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
|
|
|
|
|
|
|
|
|
|
Commercial |
349,315 |
|
|
319,993 |
|
|
342,376 |
|
|
323,818 |
|
|
289,544 |
|
|
Retail |
671,378 |
|
|
641,762 |
|
|
622,833 |
|
|
634,099 |
|
|
646,522 |
|
|
Public funds |
213,500 |
|
|
219,977 |
|
|
150,246 |
|
|
166,602 |
|
|
164,411 |
|
|
Total Interest-Bearing Demand |
1,234,193 |
|
|
1,181,732 |
|
|
1,115,455 |
|
|
1,124,519 |
|
|
1,100,477 |
|
| |
|
|
|
|
|
|
|
|
|
|
Total transaction accounts |
|
|
|
|
|
|
|
|
|
|
Commercial |
1,685,667 |
|
|
1,553,468 |
|
|
1,656,478 |
|
|
1,647,561 |
|
|
1,588,012 |
|
|
Retail |
943,294 |
|
|
888,479 |
|
|
864,567 |
|
|
885,978 |
|
|
921,905 |
|
|
Public funds |
284,529 |
|
|
305,099 |
|
|
216,115 |
|
|
232,424 |
|
|
238,051 |
|
|
Other |
24,331 |
|
|
25,179 |
|
|
31,222 |
|
|
28,360 |
|
|
28,518 |
|
|
Total Transaction Accounts |
2,937,821 |
|
|
2,772,225 |
|
|
2,768,382 |
|
|
2,794,323 |
|
|
2,776,486 |
|
| |
|
|
|
|
|
|
|
|
|
|
Savings |
554,836 |
|
|
519,152 |
|
|
528,214 |
|
|
519,732 |
|
|
508,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market |
|
|
|
|
|
|
|
|
|
|
Commercial |
487,759 |
|
|
494,803 |
|
|
513,477 |
|
|
517,041 |
|
|
500,649 |
|
|
Retail |
572,785 |
|
|
553,075 |
|
|
583,917 |
|
|
590,320 |
|
|
602,378 |
|
|
Public funds |
63,834 |
|
|
60,485 |
|
|
61,468 |
|
|
65,610 |
|
|
89,043 |
|
|
Total Money Market |
1,124,378 |
|
|
1,108,363 |
|
|
1,158,862 |
|
|
1,172,971 |
|
|
1,192,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokered time certificates |
597,715 |
|
|
472,857 |
|
|
458,418 |
|
|
268,998 |
|
|
367,841 |
|
|
Other time certificates |
672,749 |
|
|
712,156 |
|
|
759,265 |
|
|
785,185 |
|
|
760,861 |
|
|
|
1,270,464 |
|
|
1,185,013 |
|
|
1,217,683 |
|
|
1,054,183 |
|
|
1,128,702 |
|
|
Total Deposits |
$ |
5,887,499 |
|
|
$ |
5,584,753 |
|
|
$ |
5,673,141 |
|
|
$ |
5,541,209 |
|
|
$ |
5,605,578 |
|
| |
|
|
|
|
|
|
|
|
|
| Customer sweep accounts |
$ |
64,723 |
|
|
$ |
86,121 |
|
|
$ |
70,414 |
|
|
$ |
82,015 |
|
|
$ |
148,005 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
CURRENT EXPECTED CREDIT LOSSES ("CECL") ADOPTED ON JANUARY
1, 2020 |
|
|
|
|
| SEACOAST BANKING CORPORATION OF FLORIDA AND
SUBSIDIARIES |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
January 1, |
|
|
|
|
|
|
|
|
| ($ in thousands) |
2020 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Impact of Adoption |
|
|
|
|
|
|
|
|
|
| Increase to
allowance for non-acquired loans |
$ |
10,577 |
|
|
|
|
|
|
|
|
|
| Increase to allowance for acquired loans |
10,649 |
|
|
|
|
|
|
|
|
|
| Reversal of contra-loan balances for purchased credit impaired
loans, now included in allowance |
(706 |
) |
|
|
|
|
|
|
|
|
| Increase to reserve for unfunded commitments (included in Other
Liabilities) |
1,837 |
|
|
|
|
|
|
|
|
|
| Tax effect |
(5,481 |
) |
|
|
|
|
|
|
|
|
| Decrease to retained earnings upon adoption |
$ |
16,876 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
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 |
| |
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands, except per share data) |
1Q'20 |
|
4Q'19 |
|
3Q'19 |
|
2Q'19 |
|
1Q'19 |
| |
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
709 |
|
|
$ |
27,176 |
|
|
$ |
25,605 |
|
|
$ |
23,253 |
|
|
$ |
22,705 |
|
| |
|
|
|
|
|
|
|
|
|
| Total noninterest income |
14,688 |
|
|
16,376 |
|
|
13,943 |
|
|
13,577 |
|
|
12,836 |
|
| Securities (gains) losses,
net |
(19 |
) |
|
(2,539 |
) |
|
847 |
|
|
466 |
|
|
9 |
|
| BOLI benefits on death
(included in other income) |
— |
|
|
— |
|
|
(956 |
) |
|
— |
|
|
— |
|
|
Total Adjustments to Noninterest Income |
(19 |
) |
|
(2,539 |
) |
|
(109 |
) |
|
466 |
|
|
9 |
|
|
Total Adjusted Noninterest Income |
14,669 |
|
|
13,837 |
|
|
13,834 |
|
|
14,043 |
|
|
12,845 |
|
| |
|
|
|
|
|
|
|
|
|
| Total noninterest expense |
47,798 |
|
|
38,057 |
|
|
38,583 |
|
|
41,000 |
|
|
43,099 |
|
| Merger related charges |
(4,553 |
) |
|
(634 |
) |
|
— |
|
|
— |
|
|
(335 |
) |
| Amortization of
intangibles |
(1,456 |
) |
|
(1,456 |
) |
|
(1,456 |
) |
|
(1,456 |
) |
|
(1,458 |
) |
| Business continuity
expenses |
(307 |
) |
|
— |
|
|
(95 |
) |
|
— |
|
|
— |
|
| Branch reductions and other
expense initiatives |
— |
|
|
— |
|
|
(121 |
) |
|
(1,517 |
) |
|
(208 |
) |
|
Total Adjustments to Noninterest Expense |
(6,316 |
) |
|
(2,090 |
) |
|
(1,672 |
) |
|
(2,973 |
) |
|
(2,001 |
) |
|
Total Adjusted Noninterest Expense |
41,482 |
|
|
35,967 |
|
|
36,911 |
|
|
38,027 |
|
|
41,098 |
|
| |
|
|
|
|
|
|
|
|
|
| Income Taxes |
(155 |
) |
|
8,103 |
|
|
8,452 |
|
|
6,909 |
|
|
6,409 |
|
| Tax effect of adjustments |
1,544 |
|
|
(110 |
) |
|
572 |
|
|
874 |
|
|
510 |
|
| Effect of change in corporate
tax rate on deferred tax assets |
— |
|
|
— |
|
|
(1,135 |
) |
|
— |
|
|
— |
|
|
Total Adjustments to Income Taxes |
1,544 |
|
|
(110 |
) |
|
(563 |
) |
|
874 |
|
|
510 |
|
|
Adjusted Income Taxes |
1,389 |
|
|
7,993 |
|
|
7,889 |
|
|
7,783 |
|
|
6,919 |
|
|
Adjusted Net Income |
$ |
5,462 |
|
|
$ |
26,837 |
|
|
$ |
27,731 |
|
|
$ |
25,818 |
|
|
$ |
24,205 |
|
| |
|
|
|
|
|
|
|
|
|
| Earnings per diluted share, as
reported |
$ |
0.01 |
|
|
$ |
0.52 |
|
|
$ |
0.49 |
|
|
$ |
0.45 |
|
|
$ |
0.44 |
|
| Adjusted Earnings per
Diluted Share |
0.10 |
|
|
0.52 |
|
|
0.53 |
|
|
0.50 |
|
|
0.47 |
|
| Average diluted shares
outstanding |
52,284 |
|
|
52,081 |
|
|
51,935 |
|
|
51,952 |
|
|
52,039 |
|
| |
|
|
|
|
|
|
|
|
|
| Adjusted Noninterest
Expense |
$ |
41,482 |
|
|
$ |
35,967 |
|
|
$ |
36,911 |
|
|
$ |
38,027 |
|
|
$ |
41,098 |
|
| Foreclosed property expense
and net gain/(loss) on sale |
315 |
|
|
(3 |
) |
|
(262 |
) |
|
174 |
|
|
40 |
|
|
Net Adjusted Noninterest Expense |
$ |
41,797 |
|
|
$ |
35,964 |
|
|
$ |
36,649 |
|
|
$ |
38,201 |
|
|
$ |
41,138 |
|
| |
|
|
|
|
|
|
|
|
|
| Revenue |
$ |
77,865 |
|
|
$ |
78,136 |
|
|
$ |
74,891 |
|
|
$ |
73,713 |
|
|
$ |
73,610 |
|
| Total Adjustments to
Revenue |
(19 |
) |
|
(2,539 |
) |
|
(109 |
) |
|
466 |
|
|
9 |
|
| Impact of FTE adjustment |
115 |
|
|
87 |
|
|
79 |
|
|
83 |
|
|
87 |
|
|
Adjusted Revenue on a fully taxable equivalent
basis |
$ |
77,961 |
|
|
$ |
75,684 |
|
|
$ |
74,861 |
|
|
$ |
74,262 |
|
|
$ |
73,706 |
|
| Adjusted Efficiency Ratio |
53.61 |
% |
|
47.52 |
% |
|
48.96 |
% |
|
51.44 |
% |
|
55.81 |
% |
| |
|
|
|
|
|
|
|
|
|
| Average Assets |
$ |
7,055,543 |
|
|
$ |
6,996,214 |
|
|
$ |
6,820,576 |
|
|
$ |
6,734,994 |
|
|
$ |
6,770,978 |
|
| Less average goodwill and
intangible assets |
(226,712 |
) |
|
(226,060 |
) |
|
(227,389 |
) |
|
(228,706 |
) |
|
(230,066 |
) |
|
Average Tangible Assets |
$ |
6,828,831 |
|
|
$ |
6,770,154 |
|
|
$ |
6,593,187 |
|
|
$ |
6,506,288 |
|
|
$ |
6,540,912 |
|
| |
|
|
|
|
|
|
|
|
|
| Return on Average Assets
(ROA) |
0.04 |
% |
|
1.54 |
% |
|
1.49 |
% |
|
1.38 |
% |
|
1.36 |
% |
| Impact of removing average intangible assets and related
amortization |
0.07 |
|
|
0.12 |
|
|
0.12 |
|
|
0.12 |
|
|
0.12 |
|
|
Return on Average Tangible Assets (ROTA) |
0.11 |
|
|
1.66 |
|
|
1.61 |
|
|
1.50 |
|
|
1.48 |
|
| Impact of other adjustments
for Adjusted Net Income |
0.21 |
|
|
(0.09 |
) |
|
0.06 |
|
|
0.09 |
|
|
0.02 |
|
|
Adjusted Return on Average Tangible Assets |
0.32 |
|
|
1.57 |
|
|
1.67 |
|
|
1.59 |
|
|
1.50 |
|
| |
|
|
|
|
|
|
|
|
|
| Average Shareholders'
Equity |
$ |
993,993 |
|
|
$ |
976,200 |
|
|
$ |
946,670 |
|
|
$ |
911,479 |
|
|
$ |
879,564 |
|
| Less average goodwill and
intangible assets |
(226,712 |
) |
|
(226,060 |
) |
|
(227,389 |
) |
|
(228,706 |
) |
|
(230,066 |
) |
|
Average Tangible Equity |
$ |
767,281 |
|
|
$ |
750,140 |
|
|
$ |
719,281 |
|
|
$ |
682,773 |
|
|
$ |
649,498 |
|
| |
|
|
|
|
|
|
|
|
|
| Return on Average
Shareholders' Equity |
0.29 |
% |
|
11.04 |
% |
|
10.73 |
% |
|
10.23 |
% |
|
10.47 |
% |
| Impact of removing average intangible assets and related
amortization |
0.66 |
|
|
3.91 |
|
|
4.00 |
|
|
4.07 |
|
|
4.39 |
|
|
Return on Average Tangible Common Equity
(ROTCE) |
0.95 |
|
|
14.95 |
|
|
14.73 |
|
|
14.30 |
|
|
14.86 |
|
| Impact of other adjustments
for Adjusted Net Income |
1.91 |
|
|
(0.76 |
) |
|
0.57 |
|
|
0.87 |
|
|
0.25 |
|
|
Adjusted Return on Average Tangible Common
Equity |
2.86 |
|
|
14.19 |
|
|
15.30 |
|
|
15.17 |
|
|
15.11 |
|
|
|
|
|
|
|
|
|
|
|
|
| Loan interest income excluding
accretion on acquired loans |
$ |
59,237 |
|
|
$ |
59,515 |
|
|
$ |
59,279 |
|
|
$ |
58,169 |
|
|
$ |
58,397 |
|
| Accretion on acquired
loans |
4,287 |
|
|
3,407 |
|
|
3,859 |
|
|
4,166 |
|
|
3,938 |
|
|
Loan interest income1 |
$ |
63,524 |
|
|
$ |
62,922 |
|
|
$ |
63,138 |
|
|
$ |
62,335 |
|
|
$ |
62,335 |
|
|
|
|
|
|
|
|
|
|
|
|
| 1On a fully
taxable equivalent basis. All yields and rates have been computed
using amortized cost. |
| Yield on loans excluding
accretion on acquired loans |
4.57 |
% |
|
4.63 |
% |
|
4.76 |
% |
|
4.82 |
% |
|
4.89 |
% |
| Impact of accretion on
acquired loans |
0.33 |
|
|
0.26 |
|
|
0.30 |
|
|
0.34 |
|
|
0.33 |
|
|
Yield on loans |
4.90 |
|
|
4.89 |
|
|
5.06 |
|
|
5.16 |
|
|
5.22 |
|
| |
|
|
|
|
|
|
|
|
|
| Net interest income excluding
accretion on acquired loans |
$ |
59,004 |
|
|
$ |
58,439 |
|
|
$ |
57,168 |
|
|
$ |
56,053 |
|
|
$ |
56,923 |
|
| Accretion on acquired
loans |
4,287 |
|
|
3,407 |
|
|
3,859 |
|
|
4,166 |
|
|
3,938 |
|
|
Net Interest Income1 |
$ |
63,291 |
|
|
$ |
61,846 |
|
|
$ |
61,027 |
|
|
$ |
60,219 |
|
|
$ |
60,861 |
|
| |
|
|
|
|
|
|
|
|
|
| Net interest margin excluding
accretion on acquired loans |
3.66 |
% |
|
3.63 |
% |
|
3.64 |
% |
|
3.67 |
% |
|
3.76 |
% |
| Impact of accretion on
acquired loans |
0.27 |
|
|
0.21 |
|
|
0.25 |
|
|
0.27 |
|
|
0.26 |
|
|
Net Interest Margin |
3.93 |
|
|
3.84 |
|
|
3.89 |
|
|
3.94 |
|
|
4.02 |
|
| |
|
|
|
|
|
|
|
|
|
| Security interest income
excluding tax equivalent adjustment |
$ |
8,817 |
|
|
$ |
8,630 |
|
|
$ |
8,933 |
|
|
$ |
9,076 |
|
|
$ |
9,270 |
|
| Tax equivalent adjustment on
securities |
31 |
|
|
32 |
|
|
33 |
|
|
36 |
|
|
39 |
|
|
Security interest income1 |
$ |
8,848 |
|
|
$ |
8,662 |
|
|
$ |
8,966 |
|
|
$ |
9,112 |
|
|
$ |
9,309 |
|
| |
|
|
|
|
|
|
|
|
|
| Loan interest income excluding
tax equivalent adjustment |
$ |
63,440 |
|
|
$ |
62,867 |
|
|
$ |
63,091 |
|
|
$ |
62,287 |
|
|
$ |
62,287 |
|
| Tax equivalent adjustment on
loans |
84 |
|
|
55 |
|
|
47 |
|
|
48 |
|
|
48 |
|
|
Loan interest income1 |
$ |
63,524 |
|
|
$ |
62,922 |
|
|
$ |
63,138 |
|
|
$ |
62,335 |
|
|
$ |
62,335 |
|
| |
|
|
|
|
|
|
|
|
|
| Net interest income excluding
tax equivalent adjustment |
$ |
63,176 |
|
|
$ |
61,759 |
|
|
$ |
60,947 |
|
|
$ |
60,135 |
|
|
$ |
60,774 |
|
| Tax equivalent adjustment on
securities |
31 |
|
|
32 |
|
|
33 |
|
|
36 |
|
|
39 |
|
| Tax equivalent adjustment on
loans |
84 |
|
|
55 |
|
|
47 |
|
|
48 |
|
|
48 |
|
|
Net Interest Income1 |
$ |
63,291 |
|
|
$ |
61,846 |
|
|
$ |
61,027 |
|
|
$ |
60,219 |
|
|
$ |
60,861 |
|
|
|
|
|
|
|
|
|
|
|
|
| 1On a fully
taxable equivalent basis. All yields and rates have been computed
using amortized cost. |
| |
Charles M. ShafferExecutive Vice PresidentChief Operating
Officer andChief Financial Officer(772)
221-7003Chuck.Shaffer@seacoastbank.com
Seacoast Banking Corpora... (NASDAQ:SBCF)
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Seacoast Banking Corpora... (NASDAQ:SBCF)
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