Net Income Increased 15% Year-Over-Year
to $16.3 Million
Seacoast Banking Corporation of Florida (“Seacoast” or “the
Company”) (NASDAQ: SBCF) reported net income of $16.3 million, or
$0.34 per share for the third quarter of 2018, up 15% or $2.1
million year-over-year. Seacoast reported adjusted net income1 of
$17.6 million, or $0.37 per share, representing a 16% or $2.5
million increase year-over-year.
For the third quarter 2018, return on average
tangible assets was 1.18%, return on average tangible shareholders’
equity was 12.0%, and the efficiency ratio was 57.0%, compared to
1.24%, 13.1% and 58.4%, respectively, in the prior quarter and
1.12%, 12.5%, and 58.9%, respectively, in the third quarter of
2017. Adjusted return on average tangible assets1 was 1.22%,
adjusted return on average tangible shareholders’ equity1 was
12.4%, and the adjusted efficiency ratio1 was 56.3%, compared to
1.28%, 13.5%, and 57.3%, respectively, in the prior quarter, and
1.16%, 12.8%, and 57.7%, respectively, in the third quarter of
2017.
Dennis S. Hudson, III, Seacoast’s Chairman and
CEO, said, “Our shareholders continue to benefit from Seacoast's
balanced growth strategy, combining organic growth with
value-creating acquisitions. Our data analytics and
proprietary tools are generating strong growth and returns to our
franchise, producing our third consecutive quarter of record
consumer and small business originations. Our underlying
fundamentals are robust, with increasing operating leverage, a
strong balance sheet, and a low-cost deposit base, positioning us
for continued growth and community banking leadership."
Hudson added, "Our acquisition of First Green
Bancorp, completed on October 19, is exceeding our expectations and
we fully expect to exceed the returns that we projected at the time
of announcement."
Charles M. Shaffer, Seacoast’s Chief Financial
Officer, said, “We maintained our disciplined approach to credit,
liquidity, and expense management, while continuing to make
investments in technology and talent, resulting in an increase in
tangible book value per share to $12.01 at period end, situating us
well to achieve our Vision 2020 goals. Our balance sheet continues
to perform as expected, with the net interest margin expanding 5
basis points, loan yields expanding 10 basis points, securities
yields expanding 15 basis points, and the cost of deposits only
increasing 4 basis points. With a loan to deposit ratio of 86% and
a ratio of tangible common equity to tangible assets of 9.8%, we
have the resources to invest in our organic growth
initiatives while maintaining the granularity and quality of our
loan portfolio."
1Non-GAAP measure, see “Explanation of Certain
Unaudited Non-GAAP Financial Measures”
Notable Items Impacting the Third
Quarter
Results for the third quarter were impacted by a
$3.1 million increase in the reserve for a single impaired loan,
originated in 2007, which we discussed last quarter upon moving to
nonaccrual. The increase in this specific reserve impacted earnings
per diluted share by 5 cents.
Completion of the Acquisition of First
Green Bancorp
On October 19, 2018, we completed the
acquisition of First Green Bancorp, Inc., headquartered in Orlando,
Florida. First Green operated seven branches in the Orlando,
Daytona and Ft. Lauderdale markets, with deposits of approximately
$664 million and loans of $676 million at September 30, 2018. We
expect the acquisition to have a tangible book value earn-back of
less than one year using the cross over method and to provide an
internal rate of return well over 25%. We are ahead of schedule on
our expense consolidation efforts, and are confident we will exceed
our announced returns and accretion targets.
"We welcome First Green's customers and
associates to the Seacoast family, and look forward to working
together as we build on our strengths and expand our franchise,"
Hudson added.
Third Quarter 2018 Financial
Highlights
Income Statement
- Net income was
$16.3 million, or $0.34 per diluted share, compared to $17.0
million or $0.35 for the prior quarter and $14.2 million or $0.32
for the third quarter of 2017. For the nine months ended September
30, 2018, net income was $51.3 million compared to $29.8 million
for the nine months ended September 30, 2017. Adjusted net income1
was $17.6 million, or $0.37 per diluted share, compared to $18.3
million or $0.38 for the prior quarter and $15.1 million or $0.35
for the third quarter of 2017. For the nine months ended September
30, 2018, adjusted net income1 was $55.2 million compared to $38.1
million for the nine months ended September 30, 2017.
- Net revenues were
$63.9 million, an increase of $0.9 million or 1% compared to the
prior quarter, and an increase of $6.7 million or 12% compared to
the third quarter of 2017. For the nine months ended September 30,
2018, net revenues were $188.8 million, an increase of $28.9
million or 18% compared to the nine months ended September 30,
2017. Adjusted revenues1 were $63.9 million, an increase of $0.9
million, or 1%, from the prior quarter and an increase of $6.7
million, or 12% from the third quarter of 2017. For the nine months
ended September 30, 2018, adjusted revenues1 were $189.0 million,
an increase of $29.1 million or 18% compared to the nine months
ended September 30, 2017.
- Net interest
income totaled $51.6 million, an increase of $1.4 million
or 3% from the prior quarter and an increase of $5.8 million or 13%
from the third quarter of 2017. For the nine months ended September
30, 2018, net interest income totaled $151.5 million, an increase
of $23.5 million or 18% compared to the nine months ended September
30, 2017.
- Net interest
margin was 3.82% in the current quarter compared to 3.77%
in the prior quarter and 3.74% in the third quarter of 2017.
Removing the impact of accretion of purchase discounts on acquired
loans, the net interest margin was 3.64% in the current quarter,
compared to 3.61% in the prior quarter and 3.54% in the third
quarter of 2017. Quarter over quarter, the yield on loans expanded
10 basis points, the yield on securities expanded 15 basis points,
and the cost of deposits increased 4 basis points.
- Noninterest income
totaled $12.3 million, a decrease of $0.4 million or 3% compared to
the prior quarter and an increase of $0.9 million or 7% from the
third quarter of 2017. For the nine months ended September 30,
2018, noninterest income totaled $37.3 million, 17% higher than the
nine months ended September 30, 2017. Growth in deposits and
increased customer engagement resulted in increases in the 2018
year to date period of $1.4 million in interchange income and $0.7
million in service charges on deposits when compared to the 2017
year to date period. Wealth management revenue, which includes
trust and brokerage services, continues to benefit from prior
investment in technology and talent, resulting in an increase of
$0.6 million compared to the nine months ended September 30, 2017.
Partially offsetting, mortgage banking fees decreased by $1.1
million during the nine months ended September 30, 2018. The prior
year benefited from two larger portfolio sales over the last two
quarters of 2017.
- The provision for loan
losses was $5.8 million, compared to $2.5 million in the
prior quarter and $0.7 million in the third quarter of 2017,
reflecting the effects of portfolio growth as well as an increase
of $3.1 million in the reserve for a single impaired loan. This
loan, which we discussed last quarter upon moving to nonaccrual,
was originated in 2007. This increase in specific reserve added 9
basis points to the nonacquired loan allowance as a percentage of
nonacquired loans.
- Noninterest
expense was $37.4 million, a decrease of $0.8 million or
2% to the prior quarter and an increase of $3.0 million or 9% from
the third quarter of 2017. Increases in salaries and wages and
employee benefits of $0.9 million quarter-over-quarter were the
result of investments in commercial bankers and talent to scale our
organization. More than offsetting, expenses were well controlled
during the quarter across other line items. For the nine months
ended September 30, 2018, noninterest expense was $112.8 million
compared to $110.7 million for the nine months ended September 30,
2017. Adjusted noninterest expense1 was $35.9 million compared to
$36.5 million in the prior quarter, and $32.8 million in the third
quarter of 2017. For the nine months ended September 30, 2018,
adjusted noninterest expense1 was $108.2 million compared to $97.6
million for the nine months ended September 30, 2017. As a
percentage of average tangible assets, adjusted noninterest
expense1 in the current quarter was 2.48% compared to 2.57% for the
prior quarter and 2.50% for the third quarter of 2017.
- Seacoast recorded $4.4 million in
income tax expense in the current quarter,
compared to $5.2 million in the prior quarter and $7.9 million in
the third quarter of 2017. Tax benefits related to stock-based
compensation were $0.4 million in the current quarter compared to
$0.2 million in the prior quarter.
- Year to date adjusted
revenues1 increased 18% compared to prior
year while adjusted noninterest
expense1 increased 10%, providing 8%
operating leverage.
- The efficiency
ratio was 57.0% compared to 58.4% in the prior quarter and
58.9% in the third quarter of 2017. The adjusted efficiency ratio1
was 56.3% compared to 57.3% in the prior quarter and 57.7% in the
third quarter of 2017.
Balance Sheet
- At September 30, 2018, the
Company had total assets of $5.9 billion and total
shareholders' equity of $733 million. Book value per share
was $15.50 and tangible book value per share was $12.01, compared
to $15.18 and $11.67, respectively, at June 30, 2018 and
$13.66 and $10.95, respectively, at September 30, 2017.
- Debt Securities
totaled $1.3 billion at September 30, 2018, a decrease of $46
million compared to prior quarter and a decrease of $74 million
from September 30, 2017. Given the current interest rate
environment, the securities portfolio is being used as a liquidity
source to fund loan growth.
- Net loans totaled
$4.0 billion at September 30, 2018, an increase of $80 million
compared to prior quarter or 9% annualized in the current quarter,
and an increase of $667 million or 20% from September 30,
2017. Excluding the impact of two acquisitions in the fourth
quarter of 2017, loans increased $267 million or 8% from
September 30, 2017. Loan production remains strong, supported
by analytics and expansion markets of Tampa, Orlando, and South
Florida.-- For the third consecutive quarter, consumer and small
business originations reached record highs, resulting in an
increase of 20% from the prior quarter to $125.9 million.--
Commercial originations were $131.0 million compared to $140.4
million in the prior quarter. Towards the end of the quarter, $16
million in production slid to fourth quarter, and was closed in
October.-- We continue to prudently manage commercial real estate
exposure. Construction and land development and commercial real
estate loans remain well below regulatory guidance at 59% and 199%
of total risk based capital, respectively.-- Closed residential
loans retained increased 5% quarter-over-quarter to $78.7
million.
- Pipelines (loans
in underwriting and approval or approved and not yet closed)
remained strong, totaling $315.2 million.-- Consumer and small
business pipelines reached a new peak of $59.7 million, an increase
of 13% sequentially and 27% compared to the prior year.--
Commercial pipelines were $196.5 million, an increase of 1%
sequentially and an increase of 26% compared to the prior year.--
Residential pipelines were $58.9 million, down $4.8 million from
the prior quarter.
- Total deposits were $4.6 billion as of
September 30, 2018, a decrease of $54 million sequentially and
an increase of $531 million, or 13%, from the prior year.--
Excluding acquired deposits, noninterest bearing deposits increased
8% while total deposits increased 4% compared to September 30,
2017.-- Despite the impact of seasonal trends on overall deposits,
year-over-year, interest bearing deposits (interest bearing demand,
savings and money market deposits) increased $216 million, or 10%,
to $2.4 billion, noninterest bearing demand deposits increased $205
million, or 16%, to $1.5 billion, and CDs increased $199 million,
or 55%, to $561 million.-- The Company’s balance sheet continues to
be primarily core deposit funded. Core customer funding was $4.1
billion at September 30, 2018, flat compared to June 30,
2018 and an increase of 13% compared to September 30, 2017.--
Overall cost of deposits remains low at 43 basis points, an
increase of only 4 basis points from the prior quarter.
- Third quarter return on
average tangible assets (ROTA) was 1.18%, compared to
1.24% in the prior quarter and 1.12% in the third quarter of 2017.
Adjusted ROTA1 was 1.22% compared to 1.28% in the prior quarter and
1.16% in the third quarter of 2017.
Capital
- Third quarter return on
average tangible common equity (ROTCE) was 12.04%,
compared to 13.08% in the prior quarter and 12.45% in the third
quarter of 2017. Adjusted ROTCE1 was 12.43% compared to 13.49% in
the prior quarter and 12.80% in the third quarter of 2017.
- The common equity tier 1
capital ratio (CET1) was 13.1%, total capital ratio was
15.5% and the tier 1 leverage ratio was 11.3% at September 30,
2018.
- Tangible common equity to
tangible assets was 9.85% at September 30, 2018,
compared to 9.56% at June 30, 2018, and 9.13% at
September 30, 2017.
Asset Quality
- Nonperforming loans to
total loans outstanding
was 0.56% at September 30, 2018, 0.61% at June 30, 2018,
and 0.38% at September 30, 2017.
- Nonperforming assets to
total assets was 0.52% at September 30, 2018, 0.58%
at June 30, 2018 and 0.40% at September 30, 2017.
Nonperforming assets decreased $3.8 million, the result of the sale
of a single REO property. The remaining balance includes $3.1
million in closed branch properties held as REO.
- The ratio
of allowance for loan losses to total loans was 0.83% at
September 30, 2018, 0.73% at June 30, 2018, and 0.77% at
September 30, 2017. The ratio of allowance for loan losses to
non-acquired loans was 0.98% at September 30, 2018, 0.88% at
June 30, 2018, and 0.91% at September 30, 2017. The
increase in coverage is primarily the result of a $3.1 million
increase in the reserve for a single impaired loan.
- Net charge-offs
were $0.8 million or 0.08% for the current quarter compared to $1.7
million in the prior quarter. Net charge-offs for the four most
recent quarters averaged 0.10%.
FINANCIAL HIGHLIGHTS |
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(Unaudited) |
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(Amounts in thousands except per share data) |
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Quarterly Trends |
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3Q'18 |
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2Q'18 |
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1Q'18 |
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4Q'17 |
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3Q'17 |
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Selected Balance Sheet Data: |
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Total Assets |
$ |
5,930,934 |
|
$ |
5,922,681 |
|
$ |
5,903,101 |
|
$ |
5,810,129 |
|
$ |
5,340,413 |
|
Gross Loans |
4,059,323 |
|
3,974,016 |
|
3,897,125 |
|
3,817,377 |
|
3,384,991 |
|
Total Deposits |
4,643,510 |
|
4,697,440 |
|
4,719,543 |
|
4,592,720 |
|
4,112,600 |
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Performance Measures: |
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Net Income |
$ |
16,322 |
|
$ |
16,964 |
|
$ |
18,027 |
|
$ |
13,047 |
|
$ |
14,216 |
|
Net Interest Margin |
3.82 |
% |
3.77 |
% |
3.80 |
% |
3.71 |
% |
3.74 |
% |
Average Diluted Shares Outstanding |
48,029 |
|
47,974 |
|
47,688 |
|
46,473 |
|
43,792 |
|
Diluted Earnings Per Share (EPS) |
$ |
0.34 |
|
$ |
0.35 |
|
$ |
0.38 |
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$ |
0.28 |
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$ |
0.32 |
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Return on (annualized): |
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Average Assets (ROA) |
1.10 |
% |
1.16 |
% |
1.25 |
% |
0.91 |
% |
1.06 |
% |
Average Return on Tangible Assets (ROTA) |
1.18 |
|
1.24 |
|
1.34 |
|
0.97 |
|
1.12 |
|
Average Tangible Common Equity (ROTCE) |
12.04 |
|
13.08 |
|
14.41 |
|
10.69 |
|
12.45 |
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Efficiency Ratio |
57.04 |
|
58.41 |
|
57.80 |
|
63.95 |
|
58.93 |
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Adjusted Operating Measures1: |
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Adjusted Net Income |
$ |
17,626 |
|
$ |
18,268 |
|
$ |
19,298 |
|
$ |
17,261 |
|
$ |
15,145 |
|
Adjusted Diluted EPS |
0.37 |
|
0.38 |
|
0.40 |
|
0.37 |
|
0.35 |
|
Adjusted ROTA |
1.22 |
% |
1.28 |
% |
1.38 |
% |
1.23 |
% |
1.16 |
% |
Adjusted ROTCE |
12.43 |
|
13.49 |
|
14.82 |
|
13.49 |
|
12.80 |
|
Adjusted Efficiency Ratio |
56.29 |
|
57.31 |
|
57.05 |
|
52.55 |
|
57.69 |
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Adjusted Noninterest Expenses as a |
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Percent of Average Tangible Assets |
2.48 |
|
2.57 |
|
2.55 |
|
2.24 |
|
2.50 |
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Other Data |
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Market capitalization2 |
$ |
1,380,275 |
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$ |
1,489,411 |
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$ |
1,243,644 |
|
$ |
1,182,796 |
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$ |
1,039,506 |
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Full-time equivalent employees |
835 |
|
826 |
|
814 |
|
805 |
|
762 |
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Number of ATMs |
86 |
|
87 |
|
86 |
|
85 |
|
76 |
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Full service banking offices |
49 |
|
49 |
|
49 |
|
51 |
|
45 |
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Registered online users |
94,400 |
|
92,107 |
|
91,636 |
|
83,881 |
|
78,880 |
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Registered mobile devices |
73,300 |
|
69,038 |
|
65,336 |
|
62,516 |
|
58,032 |
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1Non-GAAP measure, see “Explanation of Certain Unaudited
Non-GAAP Financial Measures”2Common 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 early last year.
|
Vision 2020 Targets |
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Return on Tangible Assets |
1.30% + |
|
Return on Tangible Common Equity |
16% + |
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Efficiency Ratio |
Below 50% |
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Third Quarter Strategic Highlights
Modernizing How We Sell
- This quarter we saw record consumer
and small business loan originations. The increase is attributable,
in part, to our commitment to serving small businesses and the
expansion of our Small Business Administration (SBA) program. On an
organic basis, small businesses represent our fastest growing
customer segment with 5% growth year-over year. This growth is
supported by our proprietary Connections portal, which provides our
teams with greater access and insight to customer service and sales
opportunities to better meet customer needs.
- Seacoast Wealth Management added
almost $100 million in new assets under management year to date. On
a net basis, assets under management have grown 21% year over year.
The resulting trust and brokerage revenues continue to rise, with
industry leading products including digital tools, and a growing
sales and support team throughout the footprint.
Lowering Our Cost to Serve
- We have consolidated five
banking center locations in the fourth quarter in conjunction with
the acquisition of First Green Bank and in alignment with our
Vision 2020 objective of reducing our footprint to meet the
evolving demands of our customers. Average deposits per branch are
expected to surpass $100 million by year end.
- New digital service enhancements
launched in October include mobile approval capability for wire
transfers, same day ACH, and card controls, providing even greater
digital access for our customers.
- We continue to aggressively move
transactions from the branch network to digital, with 53% of
transactions now originating through our digital channels.
Driving Improvements in How Our Business
Operates
- In the third quarter we launched a
large-scale initiative to implement a fully digital loan
origination platform across all business units. This follows our
successful rollout of our fully digital mortgage banking
origination platform. By investing in new technology, improving our
digital offerings, and providing best in class analytics, we
continue to create efficiency in our lending operations and
increase the productivity of our Bankers.
- Our expense control initiative
launched at the end of the second quarter, designed to reduce
overhead and help us become more streamlined in our approach, will
continue into next year. We are targeting $7 million in expense
reduction in 2019 which will be reinvested in expanding bankers in
Tampa and South Florida, installation of a fully digital loan
origination platform, and development of digital direct fulfillment
for small business lending. These investments will support growth
and greater operating leverage into 2020.
Scaling and Evolving Our Culture
- In August we announced Allen
Brinkman as Market President and Head of Commercial Banking for the
Tampa market. Brinkman brings senior leadership in a market that
has significant opportunity for growth. Brinkman previously worked
as President and CEO of SunTrust for the Tampa MSA.
- On July 1, we implemented a $15 per
hour minimum pay rate company-wide. Our associates are our most
important strength, and paying nearly twice the state minimum wage
supports our ability to attract and retain the best talent in the
market.
OTHER INFORMATION
Conference Call
InformationSeacoast will host a conference call on Friday,
October 26, 2018 at 10:00 a.m. (Eastern Time) to discuss the
earnings results. Investors may call in (toll-free) by dialing
(866) 294-4838 (passcode: 7746 433; 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
October 26, 2018 by dialing (888) 843-7419 (domestic) and using
passcode: 7746 433#.
Alternatively, individuals may listen to the
live webcast of the presentation by visiting Seacoast's website at
SeacoastBanking.com. The link is located in the subsection
"Presentations" under the heading "Investor Services." Beginning
the afternoon of October 26, 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 $5.9 billion in assets and $4.6 billion
in deposits as of September 30, 2018. The Company provides
integrated financial services including commercial and retail
banking, wealth management, and mortgage services to customers
through advanced banking solutions, 49 traditional branches of its
locally-branded wholly-owned subsidiary bank, Seacoast Bank, and
seven 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. More information about the Company is available at
http://www.Seacoastbanking.com/.
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, 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, estimates and intentions, and involve
known and unknown risks, uncertainties and other factors, which may
be beyond our control, and which may cause the actual results,
performance or achievements of Seacoast to be materially different
from future results, performance or achievements expressed or
implied by such forward-looking statements. You should not expect
us to update any forward-looking statements.
You can identify these forward-looking
statements through our use of words such as "may," "will,"
"anticipate," "assume," "should," "support", "indicate," "would,"
"believe," "contemplate," "expect," "estimate," "continue,"
"further", "point to," "project," "could," "intend" or other
similar words and expressions of the future. These forward-looking
statements may not be realized due to a variety of factors,
including, without limitation: the effects of future economic and
market conditions, including seasonality; governmental monetary and
fiscal policies, as well as legislative, 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. The risks of mergers and acquisitions, include,
without limitation: unexpected transaction costs, including the
costs of integrating operations; the risks that the businesses will
not be integrated successfully or that such integration may be more
difficult, time-consuming or costly than expected; the potential
failure to fully or timely realize expected revenues and revenue
synergies, including as the result of revenues following the merger
being lower than expected; the risk of deposit and customer
attrition; any changes in deposit mix; unexpected operating and
other costs, which may differ or change from expectations; the
risks of customer and employee loss and business disruption,
including, without limitation, as the result of difficulties in
maintaining relationships with employees; increased competitive
pressures and solicitations of customers by competitors; as well as
the difficulties and risks inherent with entering new markets.
All written or oral forward-looking statements
attributable to us are expressly qualified in their entirety by
this cautionary notice, including, without limitation, those risks
and uncertainties described in our annual report on Form 10-K for
the year ended December 31, 2017, 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
FINANCIAL
HIGHLIGHTS |
(Unaudited) |
|
|
|
|
|
SEACOAST BANKING CORPORATION
OF FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except per share
data) |
Quarterly Trends |
|
Nine Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q'18 |
|
2Q'18 |
|
1Q'18 |
|
4Q'17 |
|
3Q'17 |
|
3Q'18 |
|
3Q'17 |
|
Summary of Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
16,322 |
|
$ |
16,964 |
|
$ |
18,027 |
|
$ |
13,047 |
|
$ |
14,216 |
|
51,313 |
|
29,818 |
|
Adjusted net income (1) |
17,626 |
|
18,268 |
|
19,298 |
|
17,261 |
|
15,145 |
|
55,192 |
|
38,080 |
|
Net interest income (2) |
51,709 |
|
50,294 |
|
49,853 |
|
48,402 |
|
45,903 |
|
151,856 |
|
128,600 |
|
Net interest margin (2), (3) |
3.82 |
% |
3.77 |
% |
3.80 |
% |
3.71 |
% |
3.74 |
% |
3.79 |
% |
3.74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets-GAAP basis (3) |
1.10 |
% |
1.16 |
% |
1.25 |
% |
0.91 |
% |
1.06 |
% |
1.17 |
% |
0.79 |
% |
Return on average tangible assets (3),(4) |
1.18 |
|
1.24 |
|
1.34 |
|
0.97 |
|
1.12 |
|
1.25 |
|
0.85 |
|
Adjusted return on average tangible assets (1), (3), (4) |
1.22 |
|
1.28 |
|
1.38 |
|
1.23 |
|
1.16 |
|
1.29 |
|
1.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average shareholders' equity-GAAP basis (3) |
8.89 |
|
9.59 |
|
10.52 |
|
7.87 |
|
9.59 |
|
9.65 |
|
7.37 |
|
Return on average tangible shareholders' equity-GAAP basis
(3),(4) |
12.04 |
|
13.08 |
|
14.41 |
|
10.69 |
|
12.45 |
|
13.14 |
|
9.57 |
|
Adjusted return on average tangible common equity (1), (3),
(4) |
12.43 |
|
13.49 |
|
14.82 |
|
13.49 |
|
12.80 |
|
13.54 |
|
11.65 |
|
Efficiency ratio (5) |
57.04 |
|
58.41 |
|
57.80 |
|
63.95 |
|
58.93 |
|
57.75 |
|
67.70 |
|
Adjusted efficiency ratio (1) |
56.29 |
|
57.31 |
|
57.05 |
|
52.55 |
|
57.69 |
|
56.88 |
|
60.98 |
|
Noninterest income to total revenue |
19.31 |
|
20.28 |
|
19.95 |
|
35.49 |
|
20.06 |
|
19.84 |
|
19.92 |
|
Tangible common equity to tangible assets |
9.85 |
|
9.56 |
|
9.33 |
|
9.27 |
|
9.13 |
|
9.85 |
|
9.13 |
|
Loan-to-deposit ratio |
86.25 |
|
83.51 |
|
84.10 |
|
82.54 |
|
85.18 |
|
84.62 |
|
85.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income diluted-GAAP basis |
$ |
0.34 |
|
$ |
0.35 |
|
$ |
0.38 |
|
$ |
0.28 |
|
$ |
0.32 |
|
$ |
1.07 |
|
$ |
0.70 |
|
Net income basic-GAAP basis |
0.35 |
|
0.36 |
|
0.38 |
|
0.29 |
|
0.33 |
|
1.09 |
|
0.72 |
|
Adjusted earnings (1) |
0.37 |
|
0.38 |
|
0.40 |
|
0.37 |
|
0.35 |
|
1.15 |
|
0.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share common |
15.50 |
|
15.18 |
|
14.94 |
|
14.70 |
|
13.66 |
|
15.50 |
|
13.66 |
|
Tangible book value per share |
12.01 |
|
11.67 |
|
11.39 |
|
11.15 |
|
10.95 |
|
12.01 |
|
10.95 |
|
Cash dividends declared |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP measure - see "Explanation of Certain
Unaudited Non-GAAP Financial Measures." |
|
|
|
(2) Calculated on a fully taxable equivalent
basis using amortized cost. |
|
|
|
(3) These ratios are stated on an annualized
basis and are not necessarily indicative of future periods. |
|
|
|
(4) The Company defines tangible assets as total
assets less intangible assets, |
|
|
|
and tangible common equity as total shareholders'
equity less intangible assets. |
|
|
|
(5) Defined as (noninterest expense less amortization
of intangibles and gains, losses, and expenses on foreclosed
properties) |
|
|
|
divided by net operating revenue(net interest income
on a fully taxable equivalent basis plus noninterest income
excluding securities gains). |
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME |
|
(Unaudited) |
|
|
|
|
|
|
|
SEACOAST
BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Trends |
|
Nine Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars
in thousands, except per share data) |
3Q'18 |
|
2Q'18 |
|
1Q'18 |
|
4Q'17 |
|
3Q'17 |
|
3Q'18 |
|
3Q'17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
9,582 |
|
|
$ |
9,389 |
|
|
$ |
9,361 |
|
|
$ |
9,153 |
|
|
$ |
8,823 |
|
|
$ |
28,332 |
|
|
$ |
25,289 |
|
|
Nontaxable |
225 |
|
|
216 |
|
|
243 |
|
|
231 |
|
|
189 |
|
|
684 |
|
|
682 |
|
|
Interest and fees on
loans |
48,713 |
|
|
46,519 |
|
|
45,257 |
|
|
43,322 |
|
|
40,403 |
|
|
140,489 |
|
|
110,503 |
|
|
Interest on federal
funds sold and other investments |
634 |
|
|
585 |
|
|
616 |
|
|
638 |
|
|
664 |
|
|
1,835 |
|
|
1,778 |
|
|
Total Interest Income |
59,154 |
|
|
56,709 |
|
|
55,477 |
|
|
53,344 |
|
|
50,079 |
|
|
171,340 |
|
|
138,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits |
2,097 |
|
|
1,988 |
|
|
1,538 |
|
|
1,246 |
|
|
930 |
|
|
5,623 |
|
|
2,408 |
|
|
Interest on time
certificates |
2,975 |
|
|
2,629 |
|
|
2,179 |
|
|
2,032 |
|
|
1,266 |
|
|
7,783 |
|
|
2,646 |
|
|
Interest on borrowed
money |
2,520 |
|
|
1,885 |
|
|
1,998 |
|
|
1,840 |
|
|
2,134 |
|
|
6,403 |
|
|
5,128 |
|
|
Total Interest Expense |
7,592 |
|
|
6,502 |
|
|
5,715 |
|
|
5,118 |
|
|
4,330 |
|
|
19,809 |
|
|
10,182 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income |
51,562 |
|
|
50,207 |
|
|
49,762 |
|
|
48,226 |
|
|
45,749 |
|
|
151,531 |
|
|
128,070 |
|
|
Provision for loan
losses |
5,774 |
|
|
2,529 |
|
|
1,085 |
|
|
2,263 |
|
|
680 |
|
|
9,388 |
|
|
3,385 |
|
|
Net Interest Income After Provision for Loan
Losses |
45,788 |
|
|
47,678 |
|
|
48,677 |
|
|
45,963 |
|
|
45,069 |
|
|
142,143 |
|
|
124,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts |
2,833 |
|
|
2,674 |
|
|
2,672 |
|
|
2,566 |
|
|
2,626 |
|
|
8,179 |
|
|
7,483 |
|
|
Trust fees |
1,083 |
|
|
1,039 |
|
|
1,021 |
|
|
941 |
|
|
967 |
|
|
3,143 |
|
|
2,764 |
|
|
Mortgage banking
fees |
1,135 |
|
|
1,336 |
|
|
1,402 |
|
|
1,487 |
|
|
2,138 |
|
|
3,873 |
|
|
4,962 |
|
|
Brokerage commissions
and fees |
444 |
|
|
461 |
|
|
359 |
|
|
273 |
|
|
351 |
|
|
1,264 |
|
|
1,079 |
|
|
Marine finance
fees |
194 |
|
|
446 |
|
|
573 |
|
|
313 |
|
|
137 |
|
|
1,213 |
|
|
597 |
|
|
Interchange income |
3,119 |
|
|
3,076 |
|
|
2,942 |
|
|
2,836 |
|
|
2,582 |
|
|
9,137 |
|
|
7,747 |
|
|
BOLI income |
1,078 |
|
|
1,066 |
|
|
1,056 |
|
|
1,100 |
|
|
836 |
|
|
3,200 |
|
|
2,326 |
|
|
Other |
2,453 |
|
|
2,671 |
|
|
2,373 |
|
|
1,861 |
|
|
1,844 |
|
|
7,497 |
|
|
4,895 |
|
|
|
12,339 |
|
|
12,769 |
|
|
12,398 |
|
|
11,377 |
|
|
11,481 |
|
|
37,506 |
|
|
31,853 |
|
|
Gain on sale of VISA
stock |
— |
|
|
— |
|
|
— |
|
|
15,153 |
|
|
— |
|
|
— |
|
|
— |
|
|
Securities
gains/(losses), net |
(48 |
) |
|
(48 |
) |
|
(102 |
) |
|
112 |
|
|
(47 |
) |
|
(198 |
) |
|
(26 |
) |
|
Total Noninterest Income |
12,291 |
|
|
12,721 |
|
|
12,296 |
|
|
26,642 |
|
|
11,434 |
|
|
37,308 |
|
|
31,827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and wages |
17,129 |
|
|
16,429 |
|
|
15,381 |
|
|
16,321 |
|
|
15,627 |
|
|
48,939 |
|
|
49,371 |
|
|
Employee benefits |
3,205 |
|
|
3,034 |
|
|
3,081 |
|
|
2,812 |
|
|
2,917 |
|
|
9,320 |
|
|
8,920 |
|
|
Outsourced data
processing costs |
3,493 |
|
|
3,393 |
|
|
3,679 |
|
|
4,160 |
|
|
3,231 |
|
|
10,565 |
|
|
9,956 |
|
|
Telephone / data
lines |
624 |
|
|
643 |
|
|
612 |
|
|
538 |
|
|
573 |
|
|
1,879 |
|
|
1,753 |
|
|
Occupancy |
3,214 |
|
|
3,316 |
|
|
3,117 |
|
|
3,265 |
|
|
2,447 |
|
|
9,647 |
|
|
10,025 |
|
|
Furniture and
equipment |
1,367 |
|
|
1,468 |
|
|
1,457 |
|
|
1,806 |
|
|
1,191 |
|
|
4,292 |
|
|
4,261 |
|
|
Marketing |
1,139 |
|
|
1,344 |
|
|
1,252 |
|
|
1,490 |
|
|
1,298 |
|
|
3,735 |
|
|
3,294 |
|
|
Legal and professional
fees |
2,019 |
|
|
2,301 |
|
|
1,973 |
|
|
3,054 |
|
|
2,560 |
|
|
6,293 |
|
|
7,968 |
|
|
FDIC assessments |
431 |
|
|
595 |
|
|
598 |
|
|
558 |
|
|
548 |
|
|
1,624 |
|
|
1,768 |
|
|
Amortization of
intangibles |
1,004 |
|
|
1,004 |
|
|
989 |
|
|
964 |
|
|
839 |
|
|
2,997 |
|
|
2,397 |
|
|
Foreclosed property
expense and net (gain)/loss on sale |
(136 |
) |
|
405 |
|
|
192 |
|
|
(7 |
) |
|
(297 |
) |
|
461 |
|
|
(293 |
) |
|
Other |
3,910 |
|
|
4,314 |
|
|
4,833 |
|
|
4,223 |
|
|
3,427 |
|
|
13,057 |
|
|
11,312 |
|
|
Total Noninterest Expenses |
37,399 |
|
|
38,246 |
|
|
37,164 |
|
|
39,184 |
|
|
34,361 |
|
|
112,809 |
|
|
110,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes |
20,680 |
|
|
22,153 |
|
|
23,809 |
|
|
33,421 |
|
|
22,142 |
|
|
66,642 |
|
|
45,780 |
|
|
Income taxes |
4,358 |
|
|
5,189 |
|
|
5,782 |
|
|
20,374 |
|
|
7,926 |
|
|
15,329 |
|
|
15,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
16,322 |
|
|
$ |
16,964 |
|
|
$ |
18,027 |
|
|
$ |
13,047 |
|
|
$ |
14,216 |
|
|
$ |
51,313 |
|
|
$ |
29,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share of common
stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income diluted |
$ |
0.34 |
|
|
$ |
0.35 |
|
|
$ |
0.38 |
|
|
$ |
0.28 |
|
|
$ |
0.32 |
|
|
$ |
1.07 |
|
|
$ |
0.70 |
|
|
Net income basic |
0.35 |
|
|
0.36 |
|
|
0.38 |
|
|
0.29 |
|
|
0.33 |
|
|
1.09 |
|
|
0.72 |
|
|
Cash dividends
declared |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted shares
outstanding |
48,029,330 |
|
|
47,974,118 |
|
|
47,688,388 |
|
|
46,472,538 |
|
|
43,792,108 |
|
|
47,903,093 |
|
|
42,298,136 |
|
|
Average basic shares
outstanding |
47,205,383 |
|
|
47,164,909 |
|
|
46,951,829 |
|
|
45,541,099 |
|
|
43,151,248 |
|
|
47,108,302 |
|
|
41,626,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
(Unaudited) |
|
|
|
SEACOAST BANKING CORPORATION OF
FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
(Dollars
in thousands, except share data) |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks |
|
$ |
101,920 |
|
|
$ |
123,927 |
|
|
$ |
129,065 |
|
|
$ |
104,039 |
|
|
$ |
114,621 |
|
|
Interest
bearing deposits with other banks |
|
3,174 |
|
|
7,594 |
|
|
6,794 |
|
|
5,465 |
|
|
10,657 |
|
|
Total Cash and Cash Equivalents |
|
105,094 |
|
|
131,521 |
|
|
135,859 |
|
|
109,504 |
|
|
125,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time
deposits with other banks |
|
9,813 |
|
|
10,562 |
|
|
12,553 |
|
|
12,553 |
|
|
14,591 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
Securities: |
|
|
|
|
|
|
|
|
|
|
|
Available
for sale (at fair value) |
|
923,206 |
|
|
954,906 |
|
|
982,958 |
|
|
949,460 |
|
|
990,299 |
|
|
Held to
maturity (at amortized cost) |
|
367,387 |
|
|
382,137 |
|
|
400,647 |
|
|
416,863 |
|
|
374,773 |
|
|
Total Debt Securities |
|
1,290,593 |
|
|
1,337,043 |
|
|
1,383,605 |
|
|
1,366,323 |
|
|
1,365,072 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
held for sale |
|
16,172 |
|
|
14,707 |
|
|
20,887 |
|
|
24,306 |
|
|
29,447 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
4,059,323 |
|
|
3,974,016 |
|
|
3,897,125 |
|
|
3,817,377 |
|
|
3,384,991 |
|
|
Less:
Allowance for loan losses |
|
(33,865 |
) |
|
(28,924 |
) |
|
(28,118 |
) |
|
(27,122 |
) |
|
(26,232 |
) |
|
Net Loans |
|
4,025,458 |
|
|
3,945,092 |
|
|
3,869,007 |
|
|
3,790,255 |
|
|
3,358,759 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank
premises and equipment, net |
|
63,531 |
|
|
63,991 |
|
|
64,577 |
|
|
66,883 |
|
|
57,092 |
|
|
Other
real estate owned |
|
4,715 |
|
|
8,417 |
|
|
10,288 |
|
|
7,640 |
|
|
7,142 |
|
|
Goodwill |
|
148,555 |
|
|
148,555 |
|
|
148,555 |
|
|
147,578 |
|
|
101,747 |
|
|
Other
intangible assets, net |
|
16,508 |
|
|
17,319 |
|
|
18,246 |
|
|
19,099 |
|
|
16,102 |
|
|
Bank
owned life insurance |
|
122,561 |
|
|
121,602 |
|
|
120,654 |
|
|
123,981 |
|
|
118,762 |
|
|
Net
deferred tax assets |
|
25,822 |
|
|
26,021 |
|
|
24,427 |
|
|
25,417 |
|
|
43,951 |
|
|
Other
assets |
|
102,112 |
|
|
97,851 |
|
|
94,443 |
|
|
116,590 |
|
|
102,356 |
|
|
Total Assets |
|
$ |
5,930,934 |
|
|
$ |
5,922,681 |
|
|
$ |
5,903,101 |
|
|
$ |
5,810,129 |
|
|
$ |
5,340,299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
Noninterest demand |
|
$ |
1,488,689 |
|
|
$ |
1,463,652 |
|
|
$ |
1,488,261 |
|
|
$ |
1,400,227 |
|
|
$ |
1,284,118 |
|
|
Interest-bearing demand |
|
912,891 |
|
|
976,281 |
|
|
1,015,054 |
|
|
1,050,755 |
|
|
935,097 |
|
|
Savings |
|
451,958 |
|
|
444,736 |
|
|
437,878 |
|
|
434,346 |
|
|
379,499 |
|
|
Money
market |
|
1,036,940 |
|
|
1,023,170 |
|
|
1,035,531 |
|
|
931,458 |
|
|
870,788 |
|
|
Other
time certificates |
|
411,208 |
|
|
413,643 |
|
|
410,108 |
|
|
414,277 |
|
|
288,398 |
|
|
Brokered
time certificates |
|
192,182 |
|
|
228,602 |
|
|
184,405 |
|
|
217,385 |
|
|
281,551 |
|
|
Time
certificates of more than $250,000 |
|
149,642 |
|
|
147,356 |
|
|
148,306 |
|
|
144,272 |
|
|
73,149 |
|
|
Total Deposits |
|
4,643,510 |
|
|
4,697,440 |
|
|
4,719,543 |
|
|
4,592,720 |
|
|
4,112,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under agreements to repurchase |
|
189,035 |
|
|
200,050 |
|
|
173,249 |
|
|
216,094 |
|
|
142,153 |
|
|
Federal
Home Loan Bank borrowings |
|
261,000 |
|
|
205,000 |
|
|
208,000 |
|
|
211,000 |
|
|
389,000 |
|
|
Subordinated debt |
|
70,734 |
|
|
70,664 |
|
|
70,591 |
|
|
70,521 |
|
|
70,451 |
|
|
Other
liabilities |
|
33,824 |
|
|
33,364 |
|
|
29,857 |
|
|
30,130 |
|
|
31,654 |
|
|
Total Liabilities |
|
5,198,103 |
|
|
5,206,518 |
|
|
5,201,240 |
|
|
5,120,465 |
|
|
4,745,858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
|
|
Common
stock |
|
4,727 |
|
|
4,716 |
|
|
4,698 |
|
|
4,693 |
|
|
4,351 |
|
|
Additional paid in capital |
|
668,711 |
|
|
665,885 |
|
|
663,727 |
|
|
661,632 |
|
|
576,825 |
|
|
Retained
earnings |
|
81,112 |
|
|
64,790 |
|
|
47,825 |
|
|
29,914 |
|
|
16,161 |
|
|
Treasury
stock |
|
(2,854 |
) |
|
(2,884 |
) |
|
(2,279 |
) |
|
(2,359 |
) |
|
(1,730 |
) |
|
|
|
751,696 |
|
|
732,507 |
|
|
713,971 |
|
|
693,880 |
|
|
595,607 |
|
|
Accumulated other comprehensive loss, net |
|
(18,865 |
) |
|
(16,344 |
) |
|
(12,110 |
) |
|
(4,216 |
) |
|
(1,166 |
) |
|
Total Shareholders' Equity |
|
732,831 |
|
|
716,163 |
|
|
701,861 |
|
|
689,664 |
|
|
594,441 |
|
|
Total Liabilities & Shareholders' Equity |
|
$ |
5,930,934 |
|
|
$ |
5,922,681 |
|
|
$ |
5,903,101 |
|
|
$ |
5,810,129 |
|
|
$ |
5,340,299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding |
|
47,269,692 |
|
|
47,163,109 |
|
|
46,983,165 |
|
|
46,917,735 |
|
|
43,512,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED QUARTERLY FINANCIAL DATA |
(Unaudited) |
SEACOAST
BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
Quarterly Trends |
|
|
|
|
|
|
|
|
|
|
(Dollars
in thousands) |
3Q'18 |
|
2Q'18 |
|
1Q'18 |
|
4Q'17 |
|
3Q'17 |
|
|
|
|
|
|
|
|
|
|
Credit
Analysis |
|
|
|
|
|
|
|
|
|
Net
charge-offs (recoveries) - non-acquired loans |
$ |
800 |
|
|
$ |
1,715 |
|
|
$ |
117 |
|
|
$ |
1,475 |
|
|
$ |
612 |
|
Net
charge-offs (recoveries) - acquired loans |
(3 |
) |
|
(25 |
) |
|
(116 |
) |
|
(139 |
) |
|
(333 |
) |
Total net
charge-offs (recoveries) |
797 |
|
|
1,690 |
|
|
1 |
|
|
1,336 |
|
|
279 |
|
|
|
|
|
|
|
|
|
|
|
TDR
valuation adjustments |
$ |
36 |
|
|
$ |
33 |
|
|
$ |
88 |
|
|
$ |
37 |
|
|
$ |
169 |
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs (recoveries) to average loans - non-acquired loans |
0.08 |
% |
|
0.17 |
% |
|
0.01 |
% |
|
0.16 |
% |
|
0.07 |
% |
Net
charge-offs (recoveries) to average loans - acquired loans |
— |
|
|
— |
|
|
(0.01 |
) |
|
(0.02 |
) |
|
(0.04 |
) |
Total net
charge-offs (recoveries) to average loans |
0.08 |
|
|
0.17 |
|
|
0.00 |
|
|
0.14 |
|
|
0.03 |
|
|
|
|
|
|
|
|
|
|
|
Loan loss
provision - non-acquired loans |
$ |
5,640 |
|
|
$ |
2,591 |
|
|
$ |
1,383 |
|
|
$ |
2,053 |
|
|
$ |
795 |
|
Loan loss
provision (recapture) - acquired loans |
134 |
|
|
(62 |
) |
|
(298 |
) |
|
210 |
|
|
(115 |
) |
Total
loan loss provision |
$ |
5,774 |
|
|
$ |
2,529 |
|
|
$ |
1,085 |
|
|
$ |
2,263 |
|
|
$ |
680 |
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses - non-acquired loans |
$ |
33,188 |
|
|
$ |
28,384 |
|
|
$ |
27,541 |
|
|
$ |
26,363 |
|
|
$ |
25,822 |
|
Allowance
for loan losses - acquired loans |
677 |
|
|
540 |
|
|
577 |
|
|
759 |
|
|
410 |
|
Total
allowance for loan losses |
$ |
33,865 |
|
|
$ |
28,924 |
|
|
$ |
28,118 |
|
|
$ |
27,122 |
|
|
$ |
26,232 |
|
|
|
|
|
|
|
|
|
|
|
Non-acquired loans at end of period |
$ |
3,383,571 |
|
|
$ |
3,221,569 |
|
|
$ |
3,063,618 |
|
|
$ |
2,922,609 |
|
|
$ |
2,837,490 |
|
Purchased
noncredit impaired loans at end of period |
662,701 |
|
|
739,232 |
|
|
819,814 |
|
|
877,351 |
|
|
537,057 |
|
Purchased
credit impaired loans at end of period |
13,051 |
|
|
13,215 |
|
|
13,693 |
|
|
17,417 |
|
|
10,443 |
|
Total
loans |
$ |
4,059,323 |
|
|
$ |
3,974,016 |
|
|
$ |
3,897,125 |
|
|
$ |
3,817,377 |
|
|
$ |
3,384,990 |
|
|
|
|
|
|
|
|
|
|
|
Non-acquired loans
allowance for loan losses to non-acquired loans at end of
period |
0.98 |
% |
|
0.88 |
% |
|
0.90 |
% |
|
0.90 |
% |
|
0.91 |
% |
Total allowance for
loan losses to total loans at end of period |
0.83 |
|
|
0.73 |
|
|
0.72 |
|
|
0.71 |
|
|
0.77 |
|
Acquired loans
allowance for loan losses to acquired loans at end of period |
0.10 |
|
|
0.07 |
|
|
0.07 |
|
|
0.08 |
|
|
0.07 |
|
Discount for credit
losses to acquired loans at end of period |
2.25 |
|
|
2.31 |
|
|
2.32 |
|
|
2.33 |
|
|
2.77 |
|
|
|
|
|
|
|
|
|
|
|
End of
Period |
|
|
|
|
|
|
|
|
|
Nonperforming loans - non-acquired |
$ |
18,998 |
|
|
$ |
19,578 |
|
|
$ |
12,628 |
|
|
$ |
12,569 |
|
|
$ |
10,877 |
|
Nonperforming loans - acquired |
7,142 |
|
|
6,624 |
|
|
6,711 |
|
|
6,955 |
|
|
3,498 |
|
Other
real estate owned - non-acquired |
418 |
|
|
354 |
|
|
2,246 |
|
|
2,246 |
|
|
1,748 |
|
Other
real estate owned - acquired |
1,203 |
|
|
4,969 |
|
|
4,969 |
|
|
1,632 |
|
|
1,632 |
|
Bank
branches closed included in other real estate owned |
3,094 |
|
|
3,094 |
|
|
3,073 |
|
|
3,762 |
|
|
3,762 |
|
Total
nonperforming assets |
$ |
30,855 |
|
|
$ |
34,619 |
|
|
$ |
29,627 |
|
|
$ |
27,164 |
|
|
$ |
21,517 |
|
|
|
|
|
|
|
|
|
|
|
Restructured loans (accruing) |
$ |
13,797 |
|
|
$ |
14,241 |
|
|
$ |
14,777 |
|
|
$ |
15,559 |
|
|
$ |
16,181 |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to loans at end of period - non-acquired |
0.56 |
% |
|
0.61 |
% |
|
0.41 |
% |
|
0.43 |
% |
|
0.38 |
% |
Nonperforming loans to loans at end of period - acquired |
1.06 |
|
|
0.88 |
|
|
0.81 |
|
|
0.78 |
|
|
0.64 |
|
Total
nonperforming loans to loans at end of period |
0.64 |
|
|
0.66 |
|
|
0.50 |
|
|
0.51 |
|
|
0.42 |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets - non-acquired |
0.38 |
% |
|
0.39 |
% |
|
0.30 |
% |
|
0.32 |
% |
|
0.30 |
% |
Nonperforming assets to total assets - acquired |
0.14 |
|
|
0.19 |
|
|
0.20 |
|
|
0.15 |
|
|
0.09 |
|
Total
nonperforming assets to total assets |
0.52 |
|
|
0.58 |
|
|
0.50 |
|
|
0.47 |
|
|
0.40 |
|
|
|
|
|
|
|
|
|
|
|
Average
Balances |
|
|
|
|
|
|
|
|
|
Total
average assets |
$ |
5,903,327 |
|
|
$ |
5,878,035 |
|
|
$ |
5,851,688 |
|
|
$ |
5,716,230 |
|
|
$ |
5,316,119 |
|
Less:
Intangible assets |
165,534 |
|
|
166,393 |
|
|
167,136 |
|
|
149,432 |
|
|
118,364 |
|
Total
average tangible assets |
$ |
5,737,793 |
|
|
$ |
5,711,642 |
|
|
$ |
5,684,552 |
|
|
$ |
5,566,798 |
|
|
$ |
5,197,755 |
|
|
|
|
|
|
|
|
|
|
|
Total
average equity |
$ |
728,290 |
|
|
$ |
709,674 |
|
|
$ |
695,240 |
|
|
$ |
657,100 |
|
|
$ |
587,919 |
|
Less:
Intangible assets |
165,534 |
|
|
166,393 |
|
|
167,136 |
|
|
149,432 |
|
|
118,364 |
|
Total
average tangible equity |
$ |
562,756 |
|
|
$ |
543,281 |
|
|
$ |
528,104 |
|
|
$ |
507,668 |
|
|
$ |
469,555 |
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
LOANS |
2018 |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
Construction and land
development |
$ |
376,257 |
|
|
$ |
359,070 |
|
|
$ |
374,244 |
|
|
$ |
343,125 |
|
|
$ |
245,151 |
|
Commercial real estate
- Owner Occupied |
829,368 |
|
|
812,306 |
|
|
796,898 |
|
|
791,408 |
|
|
688,224 |
|
Commercial real estate
- Non-Owner Occupied |
897,331 |
|
|
888,989 |
|
|
848,341 |
|
|
848,584 |
|
|
789,867 |
|
Residential real
estate |
1,152,640 |
|
|
1,103,946 |
|
|
1,065,152 |
|
|
1,038,810 |
|
|
941,169 |
|
Consumer |
192,772 |
|
|
190,835 |
|
|
195,788 |
|
|
189,436 |
|
|
185,122 |
|
Commercial and
financial |
610,955 |
|
|
618,870 |
|
|
616,702 |
|
|
606,014 |
|
|
535,457 |
|
Total
Loans |
$ |
4,059,323 |
|
|
$ |
3,974,016 |
|
|
$ |
3,897,125 |
|
|
$ |
3,817,377 |
|
|
$ |
3,384,990 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES, INTEREST INCOME AND
EXPENSES, YIELDS AND RATES (1) |
(Unaudited) |
|
|
|
|
|
|
|
SEACOAST BANKING CORPORATION OF
FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q'18 |
|
2Q'18 |
|
3Q'17 |
|
|
Average |
|
|
|
Yield/ |
|
Average |
|
|
|
Yield/ |
|
Average |
|
|
|
Yield/ |
|
(Dollars in thousands) |
Balance |
|
Interest |
|
Rate |
|
Balance |
|
Interest |
|
Rate |
|
Balance |
|
Interest |
|
Rate |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
1,284,774 |
|
|
$ |
9,582 |
|
|
2.98 |
% |
$ |
1,324,280 |
|
|
$ |
9,389 |
|
|
2.84 |
% |
$ |
1,356,276 |
|
|
$ |
8,823 |
|
|
2.60 |
% |
Nontaxable |
31,411 |
|
|
283 |
|
|
3.60 |
|
32,055 |
|
|
273 |
|
|
3.41 |
|
26,256 |
|
|
290 |
|
|
4.42 |
|
Total Securities |
1,316,185 |
|
|
9,865 |
|
|
3.00 |
|
1,356,335 |
|
|
9,662 |
|
|
2.85 |
|
1,382,532 |
|
|
9,113 |
|
|
2.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investments |
51,255 |
|
|
634 |
|
|
4.91 |
|
49,387 |
|
|
585 |
|
|
4.75 |
|
76,773 |
|
|
664 |
|
|
3.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net |
4,008,527 |
|
|
48,802 |
|
|
4.83 |
|
3,948,460 |
|
|
46,549 |
|
|
4.73 |
|
3,407,376 |
|
|
40,456 |
|
|
4.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Earning Assets |
5,375,967 |
|
|
59,301 |
|
|
4.38 |
|
5,354,182 |
|
|
56,796 |
|
|
4.25 |
|
4,866,681 |
|
|
50,233 |
|
|
4.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
(29,259 |
) |
|
|
|
|
|
(29,234 |
) |
|
|
|
|
|
(26,299 |
) |
|
|
|
|
|
Cash and due from banks |
110,929 |
|
|
|
|
|
|
110,549 |
|
|
|
|
|
|
99,864 |
|
|
|
|
|
|
Premises and equipment |
63,771 |
|
|
|
|
|
|
64,445 |
|
|
|
|
|
|
57,023 |
|
|
|
|
|
|
Intangible assets |
165,534 |
|
|
|
|
|
|
166,393 |
|
|
|
|
|
|
118,364 |
|
|
|
|
|
|
Bank owned life insurance |
121,952 |
|
|
|
|
|
|
121,008 |
|
|
|
|
|
|
95,759 |
|
|
|
|
|
|
Other assets |
94,433 |
|
|
|
|
|
|
90,692 |
|
|
|
|
|
|
104,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
$ |
5,903,327 |
|
|
|
|
|
|
$ |
5,878,035 |
|
|
|
|
|
|
$ |
5,316,119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
$ |
939,527 |
|
|
$ |
426 |
|
|
0.18 |
% |
$ |
996,929 |
|
|
$ |
492 |
|
|
0.20 |
% |
$ |
927,278 |
|
|
$ |
273 |
|
|
0.12 |
% |
Savings |
444,935 |
|
|
170 |
|
|
0.15 |
|
439,691 |
|
|
118 |
|
|
0.11 |
|
377,729 |
|
|
52 |
|
|
0.05 |
|
Money market |
1,031,960 |
|
|
1,501 |
|
|
0.58 |
|
1,027,705 |
|
|
1,378 |
|
|
0.54 |
|
870,166 |
|
|
605 |
|
|
0.28 |
|
Time deposits |
779,608 |
|
|
2,975 |
|
|
1.51 |
|
790,404 |
|
|
2,629 |
|
|
1.33 |
|
548,092 |
|
|
1,266 |
|
|
0.92 |
|
Federal funds purchased and securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sold under agreements to repurchase |
204,097 |
|
|
463 |
|
|
0.90 |
|
179,540 |
|
|
334 |
|
|
0.75 |
|
165,160 |
|
|
204 |
|
|
0.49 |
|
Federal Home Loan Bank borrowings |
222,315 |
|
|
1,228 |
|
|
2.19 |
|
160,846 |
|
|
741 |
|
|
1.85 |
|
439,755 |
|
|
1,293 |
|
|
1.17 |
|
Other borrowings |
70,694 |
|
|
829 |
|
|
4.65 |
|
70,623 |
|
|
810 |
|
|
4.60 |
|
70,409 |
|
|
637 |
|
|
3.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Interest-Bearing
Liabilities |
3,693,136 |
|
|
7,592 |
|
|
0.82 |
|
3,665,738 |
|
|
6,502 |
|
|
0.71 |
|
3,398,589 |
|
|
4,330 |
|
|
0.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest demand |
1,451,751 |
|
|
|
|
|
|
1,473,331 |
|
|
|
|
|
|
1,276,779 |
|
|
|
|
|
|
Other liabilities |
30,150 |
|
|
|
|
|
|
29,292 |
|
|
|
|
|
|
52,832 |
|
|
|
|
|
|
Total Liabilities |
5,175,037 |
|
|
|
|
|
|
5,168,361 |
|
|
|
|
|
|
4,728,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
728,290 |
|
|
|
|
|
|
709,674 |
|
|
|
|
|
|
587,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities & Equity |
$ |
5,903,327 |
|
|
|
|
|
|
$ |
5,878,035 |
|
|
|
|
|
|
$ |
5,316,119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Deposits |
|
|
|
|
0.43 |
% |
|
|
|
|
0.39 |
% |
|
|
|
|
0.22 |
% |
Interest expense as a % of earning assets |
|
|
|
|
0.56 |
% |
|
|
|
|
0.49 |
% |
|
|
|
|
0.35 |
% |
Net interest income as a % of earning assets |
|
|
$ |
51,709 |
|
|
3.82 |
% |
|
|
$ |
50,294 |
|
|
3.77 |
% |
|
|
$ |
45,903 |
|
|
3.74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) On a fully taxable equivalent basis. All
yields and rates have been computed on an annualized basis using
amortized cost. |
|
|
|
|
|
Fees on loans have been included in interest on
loans. Nonaccrual loans are included in loan balances. |
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES, INTEREST INCOME AND
EXPENSES, YIELDS AND RATES (1) |
(Unaudited) |
|
|
|
SEACOAST BANKING CORPORATION OF
FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September
30, |
|
Nine Months Ended September 30, |
|
|
2018 |
|
2017 |
|
|
Average |
|
|
|
Yield/ |
|
Average |
|
|
|
Yield/ |
|
(Dollars in thousands) |
Balance |
|
Interest |
|
Rate |
|
Balance |
|
Interest |
|
Rate |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
1,323,164 |
|
|
$ |
28,332 |
|
|
2.85 |
% |
$ |
1,299,128 |
|
|
$ |
25,289 |
|
|
2.60 |
% |
Nontaxable |
32,031 |
|
|
863 |
|
|
3.59 |
|
27,388 |
|
|
1,047 |
|
|
5.10 |
|
Total Securities |
1,355,195 |
|
|
29,195 |
|
|
2.87 |
|
1,326,516 |
|
|
26,336 |
|
|
2.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and other |
|
|
|
|
|
|
|
|
|
|
|
|
investments |
52,253 |
|
|
1,835 |
|
|
4.70 |
|
68,766 |
|
|
1,778 |
|
|
3.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net |
3,943,617 |
|
|
140,635 |
|
|
4.77 |
|
3,199,408 |
|
|
110,668 |
|
|
4.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Earning Assets |
5,351,065 |
|
|
171,665 |
|
|
4.29 |
|
4,594,690 |
|
|
138,782 |
|
|
4.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
(28,660 |
) |
|
|
|
|
|
(25,211 |
) |
|
|
|
|
|
Cash and due from banks |
111,781 |
|
|
|
|
|
|
101,858 |
|
|
|
|
|
|
Premises and equipment |
64,708 |
|
|
|
|
|
|
58,401 |
|
|
|
|
|
|
Intangible assets |
166,348 |
|
|
|
|
|
|
104,079 |
|
|
|
|
|
|
Bank owned life insurance |
121,742 |
|
|
|
|
|
|
89,401 |
|
|
|
|
|
|
Other assets |
90,888 |
|
|
|
|
|
|
111,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
$ |
5,877,872 |
|
|
|
|
|
|
$ |
5,034,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
$ |
979,148 |
|
|
$ |
1,368 |
|
|
0.19 |
% |
$ |
904,175 |
|
|
$ |
698 |
|
|
0.10 |
% |
Savings |
440,054 |
|
|
392 |
|
|
0.12 |
|
370,145 |
|
|
147 |
|
|
0.05 |
|
Money market |
1,012,259 |
|
|
3,863 |
|
|
0.51 |
|
847,705 |
|
|
1,563 |
|
|
0.25 |
|
Time deposits |
782,283 |
|
|
7,783 |
|
|
1.33 |
|
443,416 |
|
|
2,646 |
|
|
0.80 |
|
Federal funds purchased and securities |
|
|
|
|
|
|
|
|
|
|
|
|
sold under agreements to repurchase |
186,643 |
|
|
1,071 |
|
|
0.77 |
|
173,601 |
|
|
551 |
|
|
0.42 |
|
Federal Home Loan Bank borrowings |
219,652 |
|
|
2,999 |
|
|
1.83 |
|
396,610 |
|
|
2,775 |
|
|
0.94 |
|
Other borrowings |
70,623 |
|
|
2,333 |
|
|
4.42 |
|
70,342 |
|
|
1,802 |
|
|
3.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Interest-Bearing Liabilities |
3,690,662 |
|
|
19,809 |
|
|
0.72 |
|
3,205,994 |
|
|
10,182 |
|
|
0.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest demand |
1,446,488 |
|
|
|
|
|
|
1,248,290 |
|
|
|
|
|
|
Other liabilities |
29,533 |
|
|
|
|
|
|
39,414 |
|
|
|
|
|
|
Total Liabilities |
5,166,683 |
|
|
|
|
|
|
4,493,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
711,189 |
|
|
|
|
|
|
541,181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities & Equity |
$ |
5,877,872 |
|
|
|
|
|
|
$ |
5,034,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Deposits |
|
|
|
|
0.38 |
% |
|
|
|
|
0.22 |
% |
Interest expense as a % of earning assets |
|
|
|
|
0.49 |
% |
|
|
|
|
0.30 |
% |
Net interest income as a % of earning assets |
|
|
$ |
151,856 |
|
|
3.79 |
% |
|
|
$ |
128,600 |
|
|
3.74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) On a fully taxable equivalent basis. All yields
and rates have been computed on an annualized basis using amortized
cost. |
|
|
|
|
|
Fees on loans have been included in interest on
loans. Nonaccrual loans are included in loan balances. |
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED QUARTERLY
FINANCIAL DATA |
|
|
|
|
|
|
SEACOAST BANKING CORPORATION OF FLORIDA AND
SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(Dollars in thousands) |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Customer Relationship Funding |
|
|
|
|
|
|
|
|
|
|
Noninterest demand |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
$ |
1,182,018 |
|
$ |
1,154,225 |
|
$ |
1,163,119 |
|
$ |
1,073,539 |
|
$ |
997,749 |
Retail |
|
|
233,472 |
|
236,838 |
|
252,055 |
|
253,454 |
|
217,809 |
Public funds |
|
|
42,474 |
|
44,182 |
|
49,014 |
|
50,837 |
|
43,686 |
Other |
|
|
30,725 |
|
28,407 |
|
24,073 |
|
22,397 |
|
24,874 |
|
|
|
1,488,689 |
|
1,463,652 |
|
1,488,261 |
|
1,400,227 |
|
1,284,118 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
167,865 |
|
181,646 |
|
164,359 |
|
157,272 |
|
156,176 |
Retail |
|
|
655,429 |
|
681,615 |
|
700,262 |
|
702,616 |
|
670,705 |
Public funds |
|
|
89,597 |
|
113,020 |
|
150,433 |
|
190,867 |
|
108,216 |
|
|
|
912,891 |
|
976,281 |
|
1,015,054 |
|
1,050,755 |
|
935,097 |
|
|
|
|
|
|
|
|
|
|
|
|
Total transaction accounts |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
1,349,883 |
|
1,335,871 |
|
1,327,478 |
|
1,230,811 |
|
1,153,925 |
Retail |
|
|
888,901 |
|
918,453 |
|
952,317 |
|
956,070 |
|
888,514 |
Public funds |
|
|
132,071 |
|
157,202 |
|
199,447 |
|
241,704 |
|
151,902 |
Other |
|
|
30,725 |
|
28,407 |
|
24,073 |
|
22,397 |
|
24,874 |
|
|
|
2,401,580 |
|
2,439,933 |
|
2,503,315 |
|
2,450,982 |
|
2,219,215 |
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
|
451,958 |
|
444,736 |
|
437,878 |
|
434,346 |
|
379,499 |
|
|
|
|
|
|
|
|
|
|
|
|
Money market |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
423,304 |
|
408,005 |
|
410,527 |
|
375,471 |
|
360,567 |
Retail |
|
|
524,415 |
|
522,783 |
|
522,882 |
|
471,086 |
|
431,325 |
Public funds |
|
|
89,221 |
|
92,382 |
|
102,122 |
|
84,901 |
|
78,896 |
|
|
|
1,036,940 |
|
1,023,170 |
|
1,035,531 |
|
931,458 |
|
870,788 |
|
|
|
|
|
|
|
|
|
|
|
|
Brokered time certificates of deposit |
|
192,182 |
|
228,602 |
|
184,405 |
|
217,385 |
|
281,551 |
Other time certificates of deposit |
|
560,850 |
|
560,999 |
|
558,414 |
|
558,549 |
|
361,547 |
|
|
753,032 |
|
789,601 |
|
742,819 |
|
775,934 |
|
643,098 |
Total Deposits |
|
$ |
4,643,510 |
|
$ |
4,697,440 |
|
$ |
4,719,543 |
|
$ |
4,592,720 |
|
$ |
4,112,600 |
|
|
|
|
|
|
|
|
|
|
|
|
Customer sweep accounts |
|
$ |
189,035 |
|
$ |
200,050 |
|
$ |
173,249 |
|
$ |
216,094 |
|
$ |
142,153 |
|
|
|
|
|
|
|
|
|
|
|
|
Total core customer funding (1) |
|
$ |
4,079,513 |
|
$ |
4,107,889 |
|
$ |
4,149,973 |
|
$ |
4,032,880 |
|
$ |
3,611,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total deposits and customer sweep accounts,
excluding certificates of deposit. |
|
|
|
|
|
|
|
|
|
Explanation of Certain Unaudited Non-GAAP Financial Measures
This presentation contains financial information
determined by methods other than Generally Accepted Accounting
Principles (“GAAP”). Management uses these non-GAAP financial
measures in its analysis of the Company’s performance and believes
these presentations provide useful supplemental information, and a
clearer understanding of the Company’s performance. The Company
believes the non-GAAP measures enhance investors’ understanding of
the Company’s business and performance and if not provided would be
requested by the investor community. These measures are also useful
in understanding performance trends and facilitate comparisons with
the performance of other financial institutions. The limitations
associated with operating measures are the risk that persons might
disagree as to the appropriateness of items comprising these
measures and that different companies might calculate these
measures differently. The Company provides reconciliations between
GAAP and these non-GAAP measures. These disclosures should not be
considered an alternative to GAAP.
GAAP TO NON-GAAP
RECONCILIATION |
|
|
|
|
|
|
|
|
|
|
|
|
SEACOAST BANKING CORPORATION
OF FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Trends |
|
Nine Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands except per share
data) |
3Q'18 |
|
2Q'18 |
|
1Q'18 |
|
4Q'17 |
|
3Q'17 |
|
3Q'18 |
|
3Q'17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
16,322 |
|
|
$ |
16,964 |
|
|
$ |
18,027 |
|
|
$ |
13,047 |
|
|
$ |
14,216 |
|
|
$ |
51,313 |
|
|
$ |
29,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of VISA stock |
— |
|
|
— |
|
|
— |
|
|
(15,153 |
) |
|
— |
|
|
— |
|
|
— |
|
Securities (gains)/losses, net |
48 |
|
|
48 |
|
|
102 |
|
|
(112 |
) |
|
47 |
|
|
198 |
|
|
26 |
|
Total Adjustments to Revenue |
48 |
|
|
48 |
|
|
102 |
|
|
(15,265 |
) |
|
47 |
|
|
198 |
|
|
26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger related charges |
482 |
|
|
695 |
|
|
470 |
|
|
6,817 |
|
|
491 |
|
|
1,647 |
|
|
6,105 |
|
Amortization of intangibles |
1,004 |
|
|
1,004 |
|
|
989 |
|
|
963 |
|
|
839 |
|
|
2,997 |
|
|
2,397 |
|
Business continuity expenses - Hurricane Irma |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
352 |
|
|
— |
|
|
352 |
|
Branch reductions and other expense initiatives |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(127 |
) |
|
— |
|
|
4,321 |
|
Total Adjustments to Noninterest Expense |
1,486 |
|
|
1,699 |
|
|
1,459 |
|
|
7,780 |
|
|
1,555 |
|
|
4,644 |
|
|
13,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate on adjustments |
(230 |
) |
|
(443 |
) |
|
(538 |
) |
|
3,147 |
|
|
(673 |
) |
|
(1,211 |
) |
|
(4,939 |
) |
Effect of change in corporate tax rate |
— |
|
|
— |
|
|
248 |
|
|
8,552 |
|
|
— |
|
|
248 |
|
|
— |
|
Adjusted Net Income |
$ |
17,626 |
|
|
$ |
18,268 |
|
|
$ |
19,298 |
|
|
$ |
17,261 |
|
|
$ |
15,145 |
|
|
$ |
55,192 |
|
|
$ |
38,080 |
|
Earnings per diluted share, as reported |
0.34 |
|
|
0.35 |
|
|
0.38 |
|
|
0.28 |
|
|
0.32 |
|
|
1.07 |
|
|
0.70 |
|
Adjusted Earnings per Diluted Share |
0.37 |
|
|
0.38 |
|
|
0.40 |
|
|
0.37 |
|
|
0.35 |
|
|
1.15 |
|
|
0.90 |
|
Average shares outstanding (000) |
|
48,029 |
|
|
|
47,974 |
|
|
|
47,688 |
|
|
|
46,473 |
|
|
|
43,792 |
|
|
|
47,903 |
|
|
|
42,298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
63,853 |
|
|
62,928 |
|
|
62,058 |
|
|
74,868 |
|
|
57,183 |
|
|
188,839 |
|
|
159,897 |
|
Total Adjustments to Revenue |
48 |
|
|
48 |
|
|
102 |
|
|
(15,265 |
) |
|
47 |
|
|
198 |
|
|
26 |
|
Adjusted Revenue |
63,901 |
|
|
62,976 |
|
|
62,160 |
|
|
59,603 |
|
|
57,230 |
|
|
189,037 |
|
|
159,923 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expense |
37,399 |
|
|
38,246 |
|
|
37,164 |
|
|
39,184 |
|
|
34,361 |
|
|
112,809 |
|
|
110,732 |
|
Total Adjustments to Noninterest Expense |
1,486 |
|
|
1,699 |
|
|
1,459 |
|
|
7,780 |
|
|
1,555 |
|
|
4,644 |
|
|
13,175 |
|
Adjusted Noninterest Expense |
35,913 |
|
|
36,547 |
|
|
35,705 |
|
|
31,404 |
|
|
32,806 |
|
|
108,165 |
|
|
97,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Noninterest Expense |
35,913 |
|
|
36,547 |
|
|
35,705 |
|
|
31,404 |
|
|
32,806 |
|
|
108,165 |
|
|
97,557 |
|
Foreclosed property expense and net (gain)/loss on sale |
(137 |
) |
|
405 |
|
|
192 |
|
|
(7 |
) |
|
(298 |
) |
|
460 |
|
|
(294 |
) |
Net Adjusted Noninterest Expense |
36,050 |
|
|
36,142 |
|
|
35,513 |
|
|
31,411 |
|
|
33,102 |
|
|
107,705 |
|
|
97,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Revenue |
63,901 |
|
|
62,976 |
|
|
62,160 |
|
|
59,603 |
|
|
57,230 |
|
|
189,037 |
|
|
159,923 |
|
Impact of FTE adjustment |
147 |
|
|
87 |
|
|
91 |
|
|
174 |
|
|
154 |
|
|
325 |
|
|
529 |
|
Adjusted Revenue on a fully taxable equivalent basis |
64,048 |
|
|
63,063 |
|
|
62,251 |
|
|
59,777 |
|
|
57,384 |
|
|
189,362 |
|
|
160,452 |
|
Adjusted Efficiency Ratio |
56.3 |
% |
|
57.3 |
% |
|
57.1 |
% |
|
52.6 |
% |
|
57.7 |
% |
|
56.9 |
% |
|
61.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Assets |
$ |
5,903,327 |
|
|
$ |
5,878,035 |
|
|
$ |
5,851,688 |
|
|
$ |
5,716,230 |
|
|
$ |
5,316,119 |
|
|
$ |
5,877,872 |
|
|
$ |
5,034,879 |
|
Less average goodwill and intangible assets |
(165,534 |
) |
|
(166,393 |
) |
|
(167,136 |
) |
|
(149,432 |
) |
|
(118,364 |
) |
|
(166,348 |
) |
|
(104,079 |
) |
Average Tangible Assets |
$ |
5,737,793 |
|
|
$ |
5,711,642 |
|
|
$ |
5,684,552 |
|
|
$ |
5,566,798 |
|
|
$ |
5,197,755 |
|
|
$ |
5,711,524 |
|
|
$ |
4,930,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average Assets (ROA) |
1.10 |
% |
|
1.16 |
% |
|
1.25 |
% |
|
0.91 |
% |
|
1.06 |
% |
|
1.17 |
% |
|
0.79 |
% |
Impact of removing average intangible assets and related
amortization |
0.08 |
|
|
0.08 |
|
|
0.09 |
|
|
0.06 |
|
|
0.06 |
|
|
0.08 |
|
|
0.06 |
|
Return on Tangible Average Assets (ROTA) |
1.18 |
|
|
1.24 |
|
|
1.34 |
|
|
0.97 |
|
|
1.12 |
|
|
1.25 |
|
|
0.85 |
|
Impact of other adjustments for Adjusted Net Income |
0.04 |
|
|
0.04 |
|
|
0.04 |
|
|
0.26 |
|
|
0.04 |
|
|
0.04 |
|
|
0.18 |
|
Adjusted Return on Average Tangible Assets |
1.22 |
|
|
1.28 |
|
|
1.38 |
|
|
1.23 |
|
|
1.16 |
|
|
1.29 |
|
|
1.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Shareholders' Equity |
$ |
728,290 |
|
|
$ |
709,674 |
|
|
$ |
695,240 |
|
|
$ |
657,100 |
|
|
$ |
587,919 |
|
|
$ |
711,189 |
|
|
$ |
541,181 |
|
Less average goodwill and intangible assets |
(165,534 |
) |
|
(166,393 |
) |
|
(167,136 |
) |
|
(149,432 |
) |
|
(118,364 |
) |
|
(166,348 |
) |
|
(104,079 |
) |
Average Tangible Equity |
$ |
562,756 |
|
|
$ |
543,281 |
|
|
$ |
528,104 |
|
|
$ |
507,668 |
|
|
$ |
469,555 |
|
|
$ |
544,841 |
|
|
$ |
437,102 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average Shareholders' Equity |
8.9 |
% |
|
9.6 |
% |
|
10.5 |
% |
|
7.9 |
% |
|
9.6 |
% |
|
9.6 |
% |
|
7.4 |
% |
Impact of removing average intangible assets and related
amortization |
3.5 |
|
|
3.5 |
|
|
3.9 |
|
|
2.8 |
|
|
2.9 |
|
|
3.5 |
|
|
2.2 |
|
Return on Average Tangible Common Equity (ROTCE) |
12.0 |
|
|
13.1 |
|
|
14.4 |
|
|
10.7 |
|
|
12.5 |
|
|
13.1 |
|
|
9.6 |
|
Impact of other adjustments for Adjusted Net Income |
0.4 |
|
|
0.4 |
|
|
0.4 |
|
|
2.8 |
|
|
0.3 |
|
|
0.4 |
|
|
2.0 |
|
Adjusted Return on Average Tangible Common
Equity |
12.4 |
|
|
13.5 |
|
|
14.8 |
|
|
13.5 |
|
|
12.8 |
|
|
13.5 |
|
|
11.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Seacoast Banking Corpora... (NASDAQ:SBCF)
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From Mar 2024 to Apr 2024
Seacoast Banking Corpora... (NASDAQ:SBCF)
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From Apr 2023 to Apr 2024