UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported)
April 28, 2015
SEACOAST BANKING CORPORATION OF FLORIDA |
(Exact Name of Registrant as Specified in Charter) |
Florida |
|
0-13660 |
|
59-2260678 |
(State or Other Jurisdiction
of Incorporation) |
|
(Commission
File Number |
|
(IRS Employer
Identification No.) |
815 Colorado Avenue, Stuart, FL |
|
34994 |
(Address of Principal Executive Offices) |
|
(Zip Code) |
Registrant’s telephone number, including
area code (772) 287-4000
Check the appropriate box below if the Form
8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(see General Instruction A.2.)
| ¨ | Written communications pursuant to Rule
425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12
under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant
to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant
to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
SEACOAST BANKING CORPORATION OF FLORIDA
Item 2.02 Results of Operations and Financial
Condition
On April 28, 2015, the Seacoast Banking Corporation
of Florida (“Seacoast” or the “Company”) announced its financial results for the first quarter ended March
31, 2015.
A copy of the press release announcing Seacoast’s
results for the first quarter ended March 31, 2015 is attached hereto as Exhibit 99.1 and incorporated herein by reference.
Item 7.01 Regulation FD Disclosure
On April 29, 2015, Seacoast held an investor
conference call to discuss its financial results for the first quarter ended March 31, 2015. A transcript of this conference call
is attached hereto as Exhibit 99.2 and incorporated herein by reference. Also attached as Exhibit 99.3 are charts (available on
the Company’s website at www.seacoastbanking.com) containing information used in the conference call and incorporated herein
by reference. All information included in the transcript and the charts is presented as of March 31, 2015, and the Company does
not assume any obligation to correct or update said information in the future.
The information in Items 2.02 and 7.01, as
well as Exhibits 99.1, 99.2 and 99.3, is being furnished and shall not be deemed “filed” for purposes of Section 18
of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act
of 1933.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit No. |
|
Description |
99.1 |
|
Press Release dated April 28, 2015 with respect to Seacoast’s financial results for the first quarter ended March 31, 2015 |
|
|
|
99.2 |
|
Transcript of Seacoast’s investor conference call held on April 29, 2015 to discuss the Company’s financial results for the first quarter ended March 31, 2015 |
|
|
|
99.3 |
|
Data on website containing information used in the conference
call held on April 29, 2015 |
Exhibits 99.1, 99.2 and 99.3 referenced herein
contain “forward-looking statements” within the meaning 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,
ability to realized deferred tax assets, cost savings, enhanced revenues, economic and seasonal conditions in our markets, and
improvements to reported earnings that may be realized from cost controls and for integration of banks that we have acquired, as
well as statements with respect to Seacoast’s objectives, expectations and intentions and other statements that are not historical
facts. Actual results may differ from those set forth in the forward-looking statements.
Forward-looking statements include statements
with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, and involve known
and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance
or achievements of Seacoast to be materially different from future results, performance or achievements expressed or implied by
such forward-looking statements. You should not expect us to update any forward-looking statements.
You can identify these forward-looking statements
through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,”
“support”, “indicate,” “would,” “believe,” “contemplate,” “expect,”
“estimate,” “continue,” “further”, “point to,” “project,” “could,”
“intend” or other similar words and expressions of the future. These forward-looking statements may not be realized
due to a variety of factors, including, without limitation: the effects of future economic and market conditions, including seasonality;
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, 2014 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.
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
|
SEACOAST BANKING CORPORATION OF FLORIDA |
|
(Registrant) |
|
|
|
Date: May 1, 2015 |
By: |
/s/ Dennis S. Hudson, III |
|
|
Dennis S. Hudson, III |
|
|
Chairman and Chief Executive Officer |
EXHIBIT INDEX
Exhibit No. |
|
Description |
|
|
|
99.1 |
|
Press Release dated April 28, 2015 with respect to Seacoast’s financial results for the first quarter ended March 31, 2015 |
|
|
|
99.2 |
|
Transcript of Seacoast’s investor conference call held on April 29, 2015 to discuss the Company’s financial results for the first quarter ended March 31, 2015 |
|
|
|
99.3 |
|
Data on website containing information used in the conference
call held on April 29, 2015 |
EXHIBIT 99.1
To Form 8-K dated April 28, 2015
NEWS RELEASE
SEACOAST BANKING CORPORATION OF FLORIDA
Dennis S.
Hudson, III
Chairman and
Chief Executive Officer
Seacoast Banking
Corporation of Florida
(772) 288-6085
William R.
Hahl
Executive
Vice President
(772) 221-2825
Stephen Fowle
Executive
Vice President
Chief Financial
Officer
(772) 463-8977
Seacoast Banking Earnings Increase 155%
YOY to $5.9 Million, or $0.18 per Share, in 1Q15 Fueled by Strong Growth, Improving Operating Efficiency and Margin Expansion
First Quarter 2015 Earnings Highlights
| · | Net
income grew 155% to $5.9 million, or $0.18 per diluted share, from $2.3 million, or $0.09
per diluted share, in the first quarter of 2014. In the fourth quarter of 2014, the net
loss was $1.5 million, or $0.05 per diluted share. |
| · | Adjusted
net income,(1) (excluding merger costs and other adjustments) increased 48%
to $6.2 million or $ 0.19 per diluted share, for the first quarter 2015, compared to
$4.2 million, or $0.13 per diluted share in 4Q14. |
| · | Revenues
increased as Seacoast continued to grow its businesses. Revenues increased $11.2 million
or 52% above first quarter 2014 levels and $1.1 million or 15%, annualized, linked quarter.
|
| · | Net
interest margin improved to 3.62% compared with 3.56% in preceding quarter, and 3.07%
in the first quarter a year ago due to loan growth, including the acquisition of The
BANKshares, Inc., and investment of excess cash. |
| · | Operating
efficiencies improved significantly with fully implemented previously announced expense
reductions. The efficiency ratio improved to 68.3% for the quarter, compared to 84.3%
in the first quarter a year ago. |
(1) Non-GAAP measure
First Quarter 2015 Growth Highlights
| · | Total
loans increased $32.6 million or 7% (annualized)
from the fourth quarter 2014, and increased 41.3% from
a year ago. Excluding the acquisition of The BANKshares, loans increased $218.7 million
or 15.9% from prior year levels. |
| · | Deposits
increased $193.3 million or 8.0% (not annualized) from the prior quarter and 43.4% from
a year earlier. Excluding the acquisition of The BANKshares, deposits increased $273.7
million or 15.0% from prior year levels. |
| · | Noninterest
bearing deposits grew to 30.4% of total deposits, from 28.2% one year ago. |
| · | During
the first quarter, Seacoast announced the agreement to acquire Grand Bankshares, Inc.
which will add approximately $208 million in assets, $184 million in deposits, and $127
million in gross loans to Seacoast's operations, along with 3 branch locations in Palm
Beach County. |
STUART,
FL., April 28, 2015 – Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCF) today reported that first quarter 2015
profits more than doubled from a year ago, fueled by expanding net interest margin, growing operating efficiencies and strong
loan and deposit growth. Net income increased 154.8% to $5.9 million, or $0.18 per diluted share, from $2.3 million, or $0.09
per share, in the first quarter of 2014. The company reported a loss of $1.5 million, or $0.05 per diluted share, in the fourth
quarter of 2014. Excluding merger related charges and other adjustments as described below, adjusted net income (non-GAAP measure)
increased 47.8% to $6.2 million or $0.19 per diluted common share, compared to $4.2 million, or $0.13 per diluted common share
in the preceding quarter and $2.5 million, or $0.10 per diluted common share, a year ago.
“Our
results this quarter reflect our focus on controlling risk, improving profitability and making the necessary investments to drive
our future growth. Effectively managing each of these areas is key to helping our organization take advantage of the opportunities
we see ahead. Consistent growth in our core business continues to improve, driven by ongoing sales effectiveness and expanded
marketing efforts. Given these factors, revenue growth during the quarter exceeded our expectations, in part due to better than
expected results from customers acquired via the Central Florida acquisition, as well as better household growth in our legacy
markets,” said Dennis S. Hudson, III, Chairman and CEO. “Additionally, we were also pleased to announce another acquisition
this quarter, which will strengthen our business in the attractive Palm Beach County market. This acquisition, along with our
prior acquisition in the Central Florida market, positions us to further capitalize on the improving Florida economy.”
FINANCIAL
HIGHLIGHTS: (Dollars
in thousands, except per share data) | |
First
Quarter 2015 | | |
Fourth
Quarter 2014 | | |
Third
Quarter 2014 | | |
Second
Quarter 2014 | | |
First
Quarter 2014 | |
| |
| | |
| | |
| | |
| | |
| |
Total Assets | |
$ | 3,231,956 | | |
$ | 3,093,335 | | |
$ | 2,361,813 | | |
$ | 2,294,156 | | |
$ | 2,315,992 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Loans | |
$ | 1,854,487 | | |
$ | 1,821,885 | | |
$ | 1,391,082 | | |
$ | 1,335,192 | | |
$ | 1,312,456 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Deposits | |
$ | 2,609,825 | | |
$ | 2,416,534 | | |
$ | 1,808,550 | | |
$ | 1,805,537 | | |
$ | 1,819,795 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Net Income (Loss) Available to Common Shareholders | |
$ | 5,859 | | |
$ | (1,517 | ) | |
$ | 2,996 | | |
$ | 1,918 | | |
$ | 2,299 | |
Diluted Earnings Per Share | |
$ | 0.18 | | |
$ | (0.05 | ) | |
$ | 0.12 | | |
$ | 0.07 | | |
$ | 0.09 | |
Return on Average Assets | |
| 0.75 | % | |
| (0.20 | )% | |
| 0.52 | % | |
| 0.33 | % | |
| 0.41 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Net Interest Margin | |
| 3.62 | % | |
| 3.56 | % | |
| 3.17 | % | |
| 3.10 | % | |
| 3.07 | % |
Efficiency Ratio | |
| 68.3 | | |
| 104.5 | | |
| 82.8 | | |
| 89.4 | | |
| 84.3 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Pretax, Pre-provision Income (1) | |
$ | 9,832 | | |
$ | (2,029 | ) | |
$ | 3,832 | | |
$ | 1,938 | | |
$ | 3,013 | |
Average Diluted Shares Outstanding | |
| 33,135 | | |
| 33,124 | | |
| 26,026 | | |
| 25,998 | | |
| 25,657 | |
Adjusted Diluted Earnings
Per Share (1) | |
$ | 0.19 | | |
$ | 0.13 | | |
$ | 0.13 | | |
$ | 0.12 | | |
$ | 0.10 | |
Adjusted
Return on Average Assets (1) | |
| 0.79 | % | |
| 0.55 | % | |
| 0.57 | % | |
| 0.52 | % | |
| 0.45 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Adjusted
Efficiency Ratio (1) | |
| 67.4 | | |
| 74.8 | | |
| 80.2 | | |
| 82.1 | | |
| 83.3 | |
Adjusted
Pretax, Pre-provision Income (1) | |
$ | 10,342 | | |
$ | 7,464 | | |
$ | 4,341 | | |
$ | 3,821 | | |
$ | 3,395 | |
Annualized
Adjusted Core Operating
Expenses as a
Percent of Average Assets
(1) | |
| 2.92 | | |
| 3.19 | | |
| 3.24 | | |
| 3.27 | | |
| 3.26 | |
Balance Sheet Highlights
“The
investments we made last year in digital access and automated and digital marketing technology are paying off, as our sales team
continues to build momentum. These new tools for data mining, automated outreach and targeted product offerings are generating
strong results and helping to fuel growth in low-cost customer funding and loans,” said Hudson. “These investments,
along with improvements in face to face sales effectiveness, are reflected in a 5% annualized growth in net households over the
last three months.”
Seacoast Continues to Expand
its Low-Cost Funding Base through Organic Growth and Acquisitions
Total deposits
increased a strong $193.3 million, or 8.0% (not annualized), from fourth quarter levels. Core customer funding increased $221.6
million, or 9.9% (not annualized), during the same period. The growth is the result of increased focus on growing small business
relationships in the more populated metropolitan areas of Palm Beach County and Central Florida. In addition, the Company continues
to expand its focus on growing relationships with governmental entities, resulting in an increase of $95.8 million in new public
funding relationships.
Total deposits
were $2.61 billion at March 31, 2015, an increase of $790.0 million above the first quarter of 2014. Excluding deposits acquired
in the BANKshares transaction, total deposits increased $273.7 million or 15.0% from one year ago. Core customer funding totaled
$2.47 billion at March 31, 2015, a $753.4 million increase from the first quarter of 2014. Excluding the acquisition, core customer
funding increased by $306.0 million or 15.1%. Demand deposits increased $68.1 million, or 9.4% from the prior quarter and $279.4
million or 54.4% from the first quarter of 2014 and represent 30.4% of total deposits, up from 28.2% one year ago.
(Dollars
in thousands) | |
First
Quarter 2015 | | |
Fourth
Quarter 2014 | | |
First Quarter 2014 | | |
1Q15
vs 4Q14 Change | | |
1Q15
vs 1Q14
Change | |
Customer Relationship
Funding | |
| | | |
| | | |
| | | |
| | | |
| | |
Demand
deposits (noninterest bearing) | |
$ | 793,336 | | |
$ | 725,238 | | |
$ | 513,925 | | |
| 9.4 | % | |
| 54.4 | % |
NOW | |
| 634,854 | | |
| 652,353 | | |
| 504,698 | | |
| (2.7 | ) | |
| 25.8 | |
Money market accounts | |
| 596,600 | | |
| 450,172 | | |
| 337,408 | | |
| 32.5 | | |
| 76.8 | |
Savings deposits | |
| 272,963 | | |
| 264,738 | | |
| 202,170 | | |
| 3.1 | | |
| 35.0 | |
Time certificates
of deposit | |
| 312,072 | | |
| 324,033 | | |
| 261,594 | | |
| (3.7 | ) | |
| 19.3 | |
Total deposits | |
| 2,609,825 | | |
| 2,416,534 | | |
| 1,819,795 | | |
| 8.0 | | |
| 43.4 | |
Sweep repurchase agreements | |
| 170,023 | | |
| 153,640 | | |
| 156,136 | | |
| 10.7 | | |
| 8.9 | |
Total core customer funding (1) | |
| 2,467,776 | | |
| 2,246,141 | | |
| 1,714,337 | | |
| 9.9 | | |
| 43.9 | |
Demand
deposit mix (noninterest
bearing) | |
| 30.4 | % | |
| 30.0 | % | |
| 28.2 | % | |
| | | |
| | |
| (1) | Total
deposits and sweep repurchase agreements, excluding certificates of deposits. |
Strong
Loan Growth Reflects Seacoast Sales Momentum and a Vibrant Florida Economy
Total
loans were $1.85 billion at March 31, 2015, up $542.0 million from a year ago. Excluding loans acquired in the BANKshares transaction,
loans increased $218.7 million or 15.9% from the prior year.
Commercial
loan originations for the quarter totaled $61.4 million despite a seasonally slower quarter for commercial loan closing. Commercial
loan closings increased $24.0 million or 64.1% over the first quarter 2014. The commercial pipeline (in underwriting and approval
or approved and not yet closed) totaled $82.1 million at March 31, 2015, the highest in the trailing four quarters, indicating
continued strength.
(Dollars
in thousands) | |
First
Quarter 2015 | | |
Fourth
Quarter 2014 | | |
Third
Quarter 2014 | | |
Second
Quarter 2014 | | |
First
Quarter 2014 | |
| |
| | |
| | |
| | |
| | |
| |
Commercial pipeline | |
$ | 82,143 | | |
$ | 60,136 | | |
$ | 45,534 | | |
$ | 58,168 | | |
$ | 29,936 | |
Commercial loans closed | |
| 61,357 | | |
| 94,719 | | |
| 72,630 | | |
| 53,250 | | |
| 37,386 | |
Total loan originations and pipeline | |
$ | 143,500 | | |
$ | 154,855 | | |
$ | 118,164 | | |
$ | 111,418 | | |
$ | 67,322 | |
Closed residential
production totaled $55.8 million compared to $57.9 million in the fourth quarter and $40.0 million in the first quarter of 2014.
The residential pipeline totaled $48.5 million at March 31, 2015 compared to $21.4 million at December 31, 2014 and $26.7 million
one year ago. Consumer loan and small business originations (inclusive of lines of credit) totaled $38.9 million in the first
quarter of 2015 compared to $10.5 million one year ago.
Income Statement Highlights
Net interest
Income at Record Level, Margin Increases Meaningfully
Net
interest income for the quarter totaled $25.7 million, a $1.0 million or 4% (not annualized) increase from the prior quarter.
Net interest margin for the quarter increased to 3.62% versus 3.56% in the fourth quarter of 2014. Improvement in net interest
income and margin was the result of increased loan growth (a $54.5 million average balance increase), the reinvestment of excess
cash balances, and additional accretion on purchased loans.
Noninterest
Income Increase Reflects Customer Growth and Strong Mortgage Banking Results
Noninterest
income (excluding security gains) increased $167,000 from fourth quarter 2014. Mortgage banking fees and interchange income, up
$372,000 and $134,000, respectively, over the prior quarter offset seasonally (fewer number of days) and lower service charges
on deposits and marine finance fees.
(Dollars
in thousands) | |
First
Quarter 2015 | | |
Fourth
Quarter 2014 | | |
Third
Quarter 2014 | | |
Second
Quarter 2014 | | |
First
Quarter 2014 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Service charges on deposit accounts | |
$ | 2,002 | | |
$ | 2,208 | | |
$ | 1,753 | | |
$ | 1,484 | | |
$ | 1,507 | |
Trust fees | |
| 801 | | |
| 795 | | |
| 817 | | |
| 703 | | |
| 671 | |
Mortgage banking fees | |
| 1,088 | | |
| 716 | | |
| 825 | | |
| 855 | | |
| 661 | |
Brokerage commissions and fees | |
| 441 | | |
| 417 | | |
| 408 | | |
| 410 | | |
| 379 | |
Marine finance fees | |
| 197 | | |
| 445 | | |
| 281 | | |
| 340 | | |
| 254 | |
Interchange income | |
| 1,737 | | |
| 1,603 | | |
| 1,452 | | |
| 1,514 | | |
| 1,403 | |
Bank owned life insurance | |
| 330 | | |
| 252 | | |
| 0 | | |
| 0 | | |
| 0 | |
Other deposit based EFT fees | |
| 114 | | |
| 92 | | |
| 70 | | |
| 83 | | |
| 98 | |
Other | |
| 598 | | |
| 613 | | |
| 543 | | |
| 507 | | |
| 585 | |
Total | |
| 7,308 | | |
| 7,141 | | |
| 6,149 | | |
| 5,896 | | |
| 5,558 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Securities gains, net | |
| 0 | | |
| 108 | | |
| 344 | | |
| 0 | | |
| 17 | |
| |
$ | 7,308 | | |
$ | 7,249 | | |
$ | 6,493 | | |
$ | 5,896 | | |
$ | 5,575 | |
Noninterest
Expense Decreases Significantly Linked Quarter as Cost Efficiencies Register
Non-interest
expense dropped significantly from fourth quarter 2014 levels, when sizable merger and restructuring charges were recorded. Core
operating expense (non-GAAP) totaled $22.7 million for the first quarter of 2015 compared to $24.4 million in the fourth quarter
of 2014. The improvement in core operating expense and our adjusted efficiency ratio (non-GAAP measure) (67.4% in 1Q15 versus
74.8% in 4Q14) is reflective of a full quarter benefit from expense reduction initiatives. The strategic cost initiatives we completed
in the fourth quarter of 2014 became fully realized this quarter and are reflected in our lower employee costs (salaries and wages)
and other fixed cost (primarily occupancy expense) infrastructure. We achieved these savings with our revenue producing staff
intact to continue the sales momentum we have established over the prior quarters.
Merger
related charges for the Grand Bankshares acquisition totaled $212,000 in the first quarter and are estimated to total approximately
$3.6 million in aggregate.
(Dollars
in thousands) | |
First
Quarter 2015 | | |
Fourth
Quarter 2014 | | |
Third
Quarter 2014 | | |
Second
Quarter 2014 | | |
First
Quarter
2014 | |
Noninterest Expense: | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Salaries and wages | |
$ | 8,777 | | |
$ | 9,998 | | |
$ | 7,868 | | |
$ | 7,587 | | |
$ | 7,412 | |
Employee benefits | |
| 2,415 | | |
| 2,461 | | |
| 2,049 | | |
| 2,081 | | |
| 2,182 | |
Outsourced data processing costs | |
| 2,184 | | |
| 1,925 | | |
| 1,769 | | |
| 1,811 | | |
| 1,695 | |
Telephone / data lines | |
| 496 | | |
| 419 | | |
| 313 | | |
| 306 | | |
| 293 | |
Occupancy expense | |
| 2,023 | | |
| 2,325 | | |
| 1,879 | | |
| 1,888 | | |
| 1,838 | |
Furniture and equipment expense | |
| 732 | | |
| 683 | | |
| 628 | | |
| 604 | | |
| 571 | |
Marketing expense | |
| 975 | | |
| 1,072 | | |
| 717 | | |
| 675 | | |
| 813 | |
Legal and professional fees | |
| 1,388 | | |
| 1,741 | | |
| 884 | | |
| 924 | | |
| 935 | |
FDIC assessments | |
| 589 | | |
| 476 | | |
| 387 | | |
| 411 | | |
| 386 | |
Amortization of intangibles | |
| 315 | | |
| 446 | | |
| 195 | | |
| 196 | | |
| 196 | |
Other | |
| 2,781 | | |
| 2,863 | | |
| 2,155 | | |
| 2,317 | | |
| 2,063 | |
Total Core Operating Expense | |
| 22,675 | | |
| 24,409 | | |
| 18,844 | | |
| 18,800 | | |
| 18,384 | |
Non-GAAP adjustments | |
| | | |
| | | |
| | | |
| | | |
| | |
Severance | |
| 12 | | |
| 478 | | |
| 328 | | |
| 181 | | |
| 212 | |
Merger related charges | |
| 275 | | |
| 2,722 | | |
| 399 | | |
| 1,234 | | |
| 6 | |
Branch closure charges and costs related to expense
initiatives | |
| 0 | | |
| 4,261 | | |
| 68 | | |
| 114 | | |
| 0 | |
Marketing and brand refresh expense | |
| 0 | | |
| 697 | | |
| 0 | | |
| 0 | | |
| 0 | |
Stock compensation expense and other incentive costs
related to improved outlook | |
| 0 | | |
| 1,213 | | |
| 0 | | |
| 0 | | |
| 0 | |
Miscellaneous losses (gains) | |
| 0 | | |
| 119 | | |
| (45 | ) | |
| 144 | | |
| 0 | |
Net loss on OREO and repossessed assets | |
| 81 | | |
| 9 | | |
| 156 | | |
| 92 | | |
| 53 | |
Asset dispositions expense | |
| 143 | | |
| 103 | | |
| 139 | | |
| 118 | | |
| 128 | |
Total Non-Interest
Expenses | |
$ | 23,186 | | |
$ | 34,011 | | |
$ | 19,889 | | |
$ | 20,683 | | |
$ | 18,789 | |
Income
Taxes
The
effective tax rate in the first quarter decreased to 37.7 % from 44.4% (higher from nondeductible merger related charges) for
the 2014 calendar year. The improvement over the prior year also reflects the full effect of income from the acquisition of tax
exempt bank owned life insurance policies and tax exempt investments in the fourth quarter of 2014.
Other Highlights
Credit
Quality Maintains Strong Trends
The
provision for loan losses was $433,000 for the first quarter of 2015 compared to $118,000 in the fourth quarter of 2014 and a
recapture of $735,000 in the first quarter 2014. The allowance for loan losses to loans for non-acquired loans ended at 1.13%,
in line with the fourth quarter 2014 of 1.14%. Additional highlights include:
| · | Nonperforming
loans to total loans outstanding at the end of the first quarter of 1.1%, down from 2.0
% at March 31, 2014; |
| · | Nonperforming
assets to total assets declined to 0.8%, compared to 1.4% a year ago; |
Earnings
Continue to Expand Already Strong Capital Ratios
Capital
ratios remain healthy and well above regulatory requirements for well-capitalized institutions. The common equity tier 1 capital
ratio (CET1) under the new Basel III standardized transition approach is estimated at 13.2% at March 31, 2015, well above the
6.5% regulatory threshold for well-capitalized institutions. The total risk based capital ratio is estimated at 15.6% at March
31, 2015 compared to 16.3% at year end 2014. The tier 1 leverage ratio is estimated at 10.0% at March 31, 2015 compared to 10.3%
at December 31, 2014. Tangible book value per share increased from year end 2014 by $0.29 per share to $8.74.
Explanation of Certain Unaudited Non-GAAP
Financial Measures
This
press release contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”).
The financial highlights provide reconciliations between GAAP net income and adjusted net income, GAAP income and adjusted pretax,
pre-provision income. 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.
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. Reconciliations
of GAAP to non-GAAP measures - all amounts are in thousands except per share data (unaudited).
To
better evaluate its earnings, the Company removes certain items to arrive at Adjusted net income, Adjusted pretax, pre-provision
income and Adjusted diluted earnings per share (non-GAAP measures) as detailed in the table below:
(Dollars
in thousands) | |
First
Quarter 2015 | | |
Fourth
Quarter 2014 | | |
Third
Quarter 2014 | | |
Second
Quarter 2014 | | |
First
Quarter 2014 | |
| |
| | |
| | |
| | |
| | |
| |
Net
income | |
$ | 5,859 | | |
$ | (1,517 | ) | |
$ | 2,996 | | |
$ | 1,918 | | |
$ | 2,299 | |
Severance | |
| 12 | | |
| 478 | | |
| 328 | | |
| 181 | | |
| 212 | |
Merger related charges | |
| 275 | | |
| 2,722 | | |
| 399 | | |
| 1,234 | | |
| 6 | |
Branch closure charges and costs related to expense
initiatives | |
| 0 | | |
| 4,261 | | |
| 68 | | |
| 114 | | |
| 0 | |
Marketing and brand refresh expense | |
| 0 | | |
| 697 | | |
| 0 | | |
| 0 | | |
| 0 | |
Stock compensation expense and other incentive
costs related to improved outlook | |
| 0 | | |
| 1,213 | | |
| 0 | | |
| 0 | | |
| 0 | |
Security (gains) | |
| 0 | | |
| (108 | ) | |
| (344 | ) | |
| 0 | | |
| (17 | ) |
Miscellaneous losses (gains) | |
| 0 | | |
| 119 | | |
| (45 | ) | |
| 144 | | |
| 0 | |
Recovery of nonaccrual loan interest | |
| 0 | | |
| 0 | | |
| (192 | ) | |
| 0 | | |
| 0 | |
Net loss on OREO and repossessed assets | |
| 81 | | |
| 9 | | |
| 156 | | |
| 92 | | |
| 53 | |
Asset dispositions expense | |
| 143 | | |
| 103 | | |
| 139 | | |
| 118 | | |
| 128 | |
Effective tax rate on adjustments | |
| (193 | ) | |
| (3,798 | ) | |
| (219 | ) | |
| (811 | ) | |
| (148 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Adjusted
Net Income (1) | |
$ | 6,177 | | |
$ | 4,179 | | |
$ | 3,286 | | |
$ | 2,990 | | |
$ | 2,533 | |
Provision (recapture) for loan losses | |
| 433 | | |
| 118 | | |
| (1,425 | ) | |
| (1,444 | ) | |
| (735 | ) |
Income taxes | |
| 3,732 | | |
| 3,167 | | |
| 2,480 | | |
| 2,275 | | |
| 1,597 | |
Adjusted pretax, pre-provision
income (1) | |
$ | 10,342 | | |
$ | 7,464 | | |
$ | 4,341 | | |
$ | 3,821 | | |
$ | 3,395 | |
Adjusted earnings per diluted share (1) | |
$ | 0.19 | | |
$ | 0.13 | | |
$ | 0.13 | | |
$ | 0.12 | | |
$ | 0.10 | |
Average shares outstanding | |
| 33,135 | | |
| 33,124 | | |
| 26,026 | | |
| 25,998 | | |
| 25,657 | |
Conference Call Information
Seacoast
will host a conference call on Wednesday, April 29, 2015 at 9:00 a.m. (Eastern Time) to discuss the earnings results. Investors
may call in at (800) 774-6070 (passcode: 7789246; host: Dennis S. Hudson). Slides will be used during the conference call
and may be accessed at Seacoast’s website at SeacoastBanking.net by selecting “Presentations” under the heading
“Investor Services.” A replay of the call will be available for one month, the afternoon of April 29, by dialing
(888) 843-7419 (domestic), using the passcode 7789246.
Alternatively,
individuals may listen to the live webcast of the presentation by visiting Seacoast’s website at SeacoastBanking.net.
The link is located in the subsection “Presentations” under the heading “Investor Services.” Beginning
the afternoon of April 29, 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 $3.1 billion
in assets and $2.4 billion in deposits as of December 31, 2014. The Company provides integrated financial services including commercial
and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, 42 traditional branches
of its locally-branded wholly-owned subsidiary bank, Seacoast Bank, and five commercial banking centers. Offices stretch from
Ft. Lauderdale, Boca Raton and West Palm Beach north through the Space Coast of Florida, into Orlando and Central Florida, and
west to Okeechobee and surrounding counties. More information about the Company is available at SeacoastBanking.com.
Sources:
https://www08.wellsfargomedia.com/downloads/pdf/com/insights/economics/regional-reports/FL_Economic_Outlook_03202015.pdf
_____________________________________________________________
Cautionary Notice Regarding Forward-Looking
Statements
This press
release contains “forward-looking statements” within the meaning 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, ability to realized deferred tax assets, cost savings, enhanced revenues, economic and seasonal conditions in our markets,
and improvements to reported earnings that may be realized from cost controls and for integration of banks that we have acquired,
as well as statements with respect to Seacoast’s objectives, expectations and intentions and other statements that are not
historical facts. Actual results may differ from those set forth in the forward-looking statements.
Forward-looking
statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and
intentions, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may
cause the actual results, performance or achievements of Seacoast to be materially different from future results, performance
or achievements expressed or implied by such forward-looking statements. You should not expect us to update any forward-looking
statements.
You can
identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,”
“assume,” “should,” “support”, “indicate,” “would,” “believe,”
“contemplate,” “expect,” “estimate,” “continue,” “further”, “point
to,” “project,” “could,” “intend” or other similar words and expressions of the future.
These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the effects of
future economic and market conditions, including seasonality; 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,
2014, 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.
FINANCIAL HIGHLIGHTS |
(Unaudited) |
|
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
(Dollars in thousands, except share data) | |
Three Months Ended | |
| |
March 31, | | |
December 31, | | |
March 31, | |
| |
2015 | | |
2014 | | |
2014 | |
Summary of Earnings | |
| | | |
| | | |
| | |
Net income (loss) | |
$ | 5,859 | | |
$ | (1,517 | ) | |
$ | 2,299 | |
Net interest income (1) | |
| 25,834 | | |
| 24,883 | | |
| 16,277 | |
Net interest margin (1), (2) | |
| 3.62 | | |
| 3.56 | | |
| 3.07 | |
| |
| | | |
| | | |
| | |
Performance Ratios | |
| | | |
| | | |
| | |
Return on average assets-GAAP basis (2), (3) | |
| 0.75 | % | |
| (0.20 | )% | |
| 0.41 | |
Return on average shareholders' equity-GAAP basis (2), (3) | |
| 7.42 | | |
| (1.89 | ) | |
| 4.02 | |
Return on average tangible shareholders' equity-GAAP basis (2), (3), (4) | |
| 8.51 | | |
| (1.71 | ) | |
| 4.26 | |
Efficiency ratio (5) | |
| 68.33 | | |
| 104.46 | | |
| 84.30 | |
Noninterest income to total revenue | |
| 22.13 | | |
| 22.40 | | |
| 25.52 | |
| |
| | | |
| | | |
| | |
Per Share Data | |
| | | |
| | | |
| | |
Net income (loss) diluted-GAAP basis | |
$ | 0.18 | | |
$ | (0.05 | ) | |
$ | 0.09 | |
Net income (loss) basic-GAAP basis | |
| 0.18 | | |
| (0.05 | ) | |
| 0.09 | |
Book value per share common | |
| 9.71 | | |
| 9.44 | | |
| 8.79 | |
Tangible book value per share | |
| 8.74 | | |
| 8.45 | | |
| 8.77 | |
Cash dividends declared | |
| 0.00 | | |
| 0.00 | | |
| 0.00 | |
(1) |
Calculated on a fully taxable equivalent basis using amortized cost. |
(2) |
These ratios are stated on an annualized basis and are not necessarily indicative of future periods. |
(3) |
The calculation of ROA and ROE do not include the mark-to-market unrealized gains (losses) because the unrealized gains (losses)are not included in net income (loss). |
(4) |
The Company defines tangible common equity as total shareholder's equity less intangible assets. |
(5) |
Defined as (noninterest expense less foreclosed property expense and amortization of intangibles) divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains). |
FINANCIAL HIGHLIGHTS |
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
| |
March 31, | | |
December 31, | | |
March 31, | |
(Dollars in thousands, except share data) | |
2015 | | |
2014 | | |
2014 | |
| |
| | |
| | |
| |
Selected Financial Data | |
| | | |
| | | |
| | |
Total assets | |
$ | 3,231,956 | | |
$ | 3,093,335 | | |
$ | 2,315,992 | |
Securities available for sale (at fair value) | |
| 730,232 | | |
| 741,375 | | |
| 658,512 | |
Securities held for investment (at amortized cost) | |
| 223,061 | | |
| 207,904 | | |
| 0 | |
Net loans | |
| 1,836,766 | | |
| 1,804,814 | | |
| 1,292,984 | |
Deposits | |
| 2,609,825 | | |
| 2,416,534 | | |
| 1,819,795 | |
Total shareholders' equity | |
| 321,844 | | |
| 312,651 | | |
| 228,382 | |
| |
| | | |
| | | |
| | |
Average Balances (Year-to-Date) | |
| | | |
| | | |
| | |
Total average assets | |
$ | 3,151,132 | | |
$ | 2,485,259 | | |
$ | 2,286,998 | |
Less: intangible assets | |
| 31,221 | | |
| 8,840 | | |
| 629 | |
Total average tangible assets | |
$ | 3,119,911 | | |
$ | 2,476,419 | | |
$ | 2,286,369 | |
| |
| | | |
| | | |
| | |
Total average equity | |
$ | 320,346 | | |
$ | 256,867 | | |
$ | 231,769 | |
Less: intangible assets | |
| 31,221 | | |
| 8,840 | | |
| 629 | |
Total average tangible equity | |
$ | 289,125 | | |
$ | 248,027 | | |
$ | 231,140 | |
| |
| | | |
| | | |
| | |
Credit Analysis | |
| | | |
| | | |
| | |
Net charge-offs (recoveries) year-to-date - non-acquired loans | |
$ | (263 | ) | |
$ | (489 | ) | |
$ | (139 | ) |
Net charge-offs year-to-date - acquired loans | |
| 46 | | |
| - | | |
| - | |
Total net charge-offs (recoveries) year-to-date | |
| (217 | ) | |
| (489 | ) | |
| (139 | ) |
| |
| | | |
| | | |
| | |
Net charge-offs (recoveries) to average loans (annualized) - non-acquired loans | |
| (0.06 | )% | |
| (0.03 | )% | |
| (0.04 | ) |
Net charge-offs to average loans (annualized) - acquired loans | |
| 0.01 | | |
| - | | |
| - | |
Total net charge-offs (recoveries) to average loans (annualized) | |
| (0.05 | )% | |
| (0.03 | )% | |
| (0.04 | ) |
| |
| | | |
| | | |
| | |
Loan loss provision (recapture) year-to-date - non-acquired loans | |
$ | 292 | | |
$ | (3,550 | ) | |
$ | (735 | ) |
Loan loss provision year-to-date - acquired loans | |
| 141 | | |
| 64 | | |
| - | |
Total loan loss provision (recapture) year-to-date | |
| 433 | | |
| (3,486 | ) | |
| (735 | ) |
| |
| | | |
| | | |
| | |
Allowance to loans at end of period - non-acquired loans | |
| 1.13 | % | |
| 1.14 | % | |
| 1.48 | |
Discount for credit losses to acquired loans at end of period | |
| 3.56 | | |
| 3.56 | | |
| - | |
| |
| | | |
| | | |
| | |
Nonperforming loans - non-acquired loans | |
$ | 16,860 | | |
$ | 18,563 | | |
$ | 26,220 | |
Nonperforming loans - acquired loans | |
| 4,196 | | |
| 2,577 | | |
| - | |
Other real estate owned - non-acquired | |
| 4,738 | | |
| 5,567 | | |
| 6,369 | |
Other real estate owned - acquired | |
| 1,431 | | |
| 1,895 | | |
| - | |
Total nonperforming assets | |
$ | 27,225 | | |
$ | 28,602 | | |
$ | 32,589 | |
| |
| | | |
| | | |
| | |
Restructured loans (accruing) | |
$ | 23,847 | | |
$ | 24,997 | | |
$ | 24,537 | |
| |
| | | |
| | | |
| | |
Purchased noncredit impaired loans | |
$ | 296,839 | | |
$ | 326,066 | | |
$ | - | |
Purchased credit impaired loans | |
| 7,119 | | |
| 7,814 | | |
| - | |
Total acquired loans | |
$ | 303,958 | | |
$ | 333,880 | | |
$ | - | |
| |
| | | |
| | | |
| | |
Nonperforming loans to loans at end of period - non-acquired loans | |
| 0.91 | % | |
| 1.02 | % | |
| 2.00 | |
Nonperforming loans to loans at end of period - acquired loans | |
| 0.23 | | |
| 0.14 | | |
| - | |
Total nonperforming loans to loans at end of period | |
| 1.14 | % | |
| 1.16 | % | |
| 2.00 | |
| |
| | | |
| | | |
| | |
Nonperforming assets to total assets - non-acquired | |
| 0.67 | % | |
| 0.78 | % | |
| 1.41 | |
Nonperforming assets to total assets - aquired | |
| 0.17 | | |
| 0.14 | | |
| - | |
Total nonperforming assets to total assets | |
| 0.84 | % | |
| 0.92 | % | |
| 1.41 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
(Unaudited) |
|
|
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
| |
Three Months Ended | |
| |
March 31, | |
(Dollars in thousands, except per share data) | |
2015 | | |
2014 | |
| |
| | |
| |
Interest on securities: | |
| | | |
| | |
Taxable | |
$ | 4,898 | | |
$ | 3,434 | |
Nontaxable | |
| 150 | | |
| 12 | |
Interest and fees on loans | |
| 22,021 | | |
| 13,798 | |
Interest on federal funds sold and other investments | |
| 249 | | |
| 268 | |
Total Interest Income | |
| 27,318 | | |
| 17,512 | |
| |
| | | |
| | |
Interest on deposits | |
| 401 | | |
| 194 | |
Interest on time certificates | |
| 347 | | |
| 407 | |
Interest on borrowed money | |
| 860 | | |
| 690 | |
Total Interest
Expense | |
| 1,608 | | |
| 1,291 | |
| |
| | | |
| | |
Net Interest Income | |
| 25,710 | | |
| 16,221 | |
Provision (recapture) for loan losses | |
| 433 | | |
| (735 | ) |
Net Interest Income After Provision
for Loan Losses | |
| 25,277 | | |
| 16,956 | |
| |
| | | |
| | |
Noninterest income: | |
| | | |
| | |
Service charges on deposit accounts | |
| 2,002 | | |
| 1,507 | |
Trust fees | |
| 801 | | |
| 671 | |
Mortgage banking fees | |
| 1,088 | | |
| 661 | |
Brokerage commissions and fees | |
| 441 | | |
| 379 | |
Marine finance fees | |
| 197 | | |
| 254 | |
Interchange income | |
| 1,737 | | |
| 1,403 | |
Other deposit based EFT fees | |
| 114 | | |
| 98 | |
BOLI income | |
| 330 | | |
| 0 | |
Other | |
| 598 | | |
| 585 | |
| |
| 7,308 | | |
| 5,558 | |
Securities gains, net | |
| 0 | | |
| 17 | |
Total Noninterest Income | |
| 7,308 | | |
| 5,575 | |
| |
| | | |
| | |
Noninterest expenses: | |
| | | |
| | |
Salaries and wages | |
| 8,789 | | |
| 7,624 | |
Employee benefits | |
| 2,415 | | |
| 2,182 | |
Outsourced data processing costs | |
| 2,184 | | |
| 1,695 | |
Telephone / data lines | |
| 496 | | |
| 293 | |
Occupancy | |
| 2,023 | | |
| 1,838 | |
Furniture and equipment | |
| 732 | | |
| 571 | |
Marketing | |
| 975 | | |
| 813 | |
Legal and professional fees | |
| 1,663 | | |
| 941 | |
FDIC assessments | |
| 589 | | |
| 386 | |
Amortization of intangibles | |
| 315 | | |
| 196 | |
Asset dispositions expense | |
| 143 | | |
| 128 | |
Net loss on other real estate owned and repossessed assets | |
| 81 | | |
| 53 | |
Other | |
| 2,781 | | |
| 2,063 | |
Total Noninterest Expenses | |
| 23,186 | | |
| 18,783 | |
| |
| | | |
| | |
Income Before Income Taxes | |
| 9,399 | | |
| 3,748 | |
Income taxes | |
| 3,540 | | |
| 1,449 | |
| |
| | | |
| | |
Net Income | |
$ | 5,859 | | |
$ | 2,299 | |
| |
| | | |
| | |
Per share of common stock: | |
| | | |
| | |
| |
| | | |
| | |
Net income diluted | |
$ | 0.18 | | |
$ | 0.09 | |
Net income basic | |
| 0.18 | | |
| 0.09 | |
Cash dividends declared | |
| 0.00 | | |
| 0.00 | |
| |
| | | |
| | |
Average diluted shares outstanding | |
| 33,135,618 | | |
| 25,656,775 | |
Average basic shares outstanding | |
| 32,971,444 | | |
| 25,489,630 | |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
|
|
|
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
|
|
|
| |
March 31, | | |
December 31, | | |
March 31, | |
(Dollars in thousands, except share data) | |
2015 | | |
2014 | | |
2014 | |
| |
| | |
| | |
| |
Assets | |
| | | |
| | | |
| | |
Cash and due from banks | |
$ | 65,097 | | |
$ | 64,411 | | |
$ | 44,984 | |
Interest bearing deposits with other banks | |
| 134,832 | | |
| 36,128 | | |
| 173,794 | |
Total Cash and Cash Equivalents | |
| 199,929 | | |
| 100,539 | | |
| 218,778 | |
| |
| | | |
| | | |
| | |
Securities: | |
| | | |
| | | |
| | |
Available for sale (at fair value) | |
| 730,232 | | |
| 741,375 | | |
| 658,512 | |
Held for investment (at amortized cost) | |
| 223,061 | | |
| 207,904 | | |
| 0 | |
Total Securities | |
| 953,293 | | |
| 949,279 | | |
| 658,512 | |
| |
| | | |
| | | |
| | |
Loans available for sale | |
| 18,851 | | |
| 12,078 | | |
| 11,038 | |
| |
| | | |
| | | |
| | |
Loans, net of deferred costs | |
| 1,854,487 | | |
| 1,821,885 | | |
| 1,312,456 | |
Less: Allowance for loan losses | |
| (17,721 | ) | |
| (17,071 | ) | |
| (19,472 | ) |
Net Loans | |
| 1,836,766 | | |
| 1,804,814 | | |
| 1,292,984 | |
| |
| | | |
| | | |
| | |
Bank premises and equipment, net | |
| 48,189 | | |
| 45,086 | | |
| 35,057 | |
Other real estate owned | |
| 6,169 | | |
| 7,462 | | |
| 6,369 | |
Other intangible assets | |
| 7,139 | | |
| 7,454 | | |
| 522 | |
Goodwill | |
| 25,222 | | |
| 25,309 | | |
| 0 | |
Bank owned life insurance | |
| 35,983 | | |
| 35,679 | | |
| 0 | |
Other assets | |
| 100,415 | | |
| 105,635 | | |
| 92,732 | |
| |
$ | 3,231,956 | | |
$ | 3,093,335 | | |
$ | 2,315,992 | |
| |
| | | |
| | | |
| | |
Liabilities and Shareholders' Equity | |
| | | |
| | | |
| | |
Liabilities | |
| | | |
| | | |
| | |
Deposits | |
| | | |
| | | |
| | |
Demand deposits (noninterest bearing) | |
$ | 793,336 | | |
$ | 725,238 | | |
$ | 513,925 | |
NOW | |
| 634,854 | | |
| 652,353 | | |
| 504,698 | |
Savings deposits | |
| 272,963 | | |
| 264,738 | | |
| 202,170 | |
Money market accounts | |
| 596,600 | | |
| 450,172 | | |
| 337,408 | |
Other time certificates | |
| 166,905 | | |
| 173,247 | | |
| 148,971 | |
Brokered time certificates | |
| 7,985 | | |
| 7,034 | | |
| 9,619 | |
Time certificates of $100,000 or more | |
| 137,182 | | |
| 143,752 | | |
| 103,004 | |
Total Deposits | |
| 2,609,825 | | |
| 2,416,534 | | |
| 1,819,795 | |
| |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | |
Federal funds purchased and securities sold under agreements to repurchase, maturing within 30
days | |
| 170,023 | | |
| 233,640 | | |
| 156,136 | |
Borrowed funds | |
| 50,000 | | |
| 50,000 | | |
| 50,000 | |
Subordinated debt | |
| 64,627 | | |
| 64,583 | | |
| 53,610 | |
Other liabilities | |
| 15,637 | | |
| 15,927 | | |
| 8,069 | |
| |
| 2,910,112 | | |
| 2,780,684 | | |
| 2,087,610 | |
| |
| | | |
| | | |
| | |
Shareholders' Equity | |
| | | |
| | | |
| | |
Common stock | |
| 3,300 | | |
| 3,300 | | |
| 2,599 | |
Additional paid in capital | |
| 379,740 | | |
| 379,249 | | |
| 301,918 | |
Accumulated deficit | |
| (59,140 | ) | |
| (65,000 | ) | |
| (68,396 | ) |
Treasury stock | |
| (83 | ) | |
| (71 | ) | |
| (39 | ) |
| |
| 323,817 | | |
| 317,478 | | |
| 236,082 | |
Accumulated other comprehensive (loss), net | |
| (1,973 | ) | |
| (4,827 | ) | |
| (7,700 | ) |
Total Shareholders' Equity | |
| 321,844 | | |
| 312,651 | | |
| 228,382 | |
| |
$ | 3,231,956 | | |
$ | 3,093,335 | | |
$ | 2,315,992 | |
| |
| | | |
| | | |
| | |
Common Shares Outstanding | |
| 33,136,152 | | |
| 33,136,592 | | |
| 25,984,488 | |
Note: The balance sheet at December 31, 2014 has
been derived from the audited financial statements at that date.
CONSOLIDATED
QUARTERLY FINANCIAL DATA |
|
|
|
(Unaudited) |
|
|
|
|
|
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
| |
QUARTERS | |
| |
2015 | | |
2014 | |
(Dollars in thousands, except per share data) | |
First | | |
Fourth | | |
Third | | |
Second | | |
First | |
Net income (loss) | |
$ | 5,859 | | |
$ | (1,517 | ) | |
$ | 2,996 | | |
$ | 1,918 | | |
$ | 2,299 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Operating Ratios | |
| | | |
| | | |
| | | |
| | | |
| | |
Return on average assets-GAAP basis (2),(3) | |
| 0.75 | % | |
| (0.20 | )% | |
| 0.52 | % | |
| 0.33 | % | |
| 0.41 | % |
Return on average tangible assets (2),(3),(4) | |
| 0.79 | | |
| (0.16 | ) | |
| 0.54 | | |
| 0.36 | | |
| 0.43 | |
Return on average shareholders' equity-GAAP basis (2),(3) | |
| 7.42 | | |
| (1.89 | ) | |
| 4.97 | | |
| 3.25 | | |
| 4.02 | |
Efficiency ratio (5) | |
| 68.33 | | |
| 104.46 | | |
| 82.78 | | |
| 89.42 | | |
| 84.30 | |
Noninterest income to total revenue | |
| 22.13 | | |
| 22.40 | | |
| 26.30 | | |
| 26.06 | | |
| 25.52 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Net interest margin (1),(2) | |
| 3.62 | | |
| 3.56 | | |
| 3.17 | | |
| 3.10 | | |
| 3.07 | |
Average equity to average assets | |
| 10.17 | | |
| 10.51 | | |
| 10.37 | | |
| 10.27 | | |
| 10.13 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Credit Analysis | |
| | | |
| | | |
| | | |
| | | |
| | |
Net charge-offs (recoveries) - non-acquired loans | |
$ | (263 | ) | |
$ | 618 | | |
$ | (856 | ) | |
$ | (112 | ) | |
$ | (139 | ) |
Net charge-offs - acquired loans | |
| 46 | | |
| - | | |
| - | | |
| - | | |
| - | |
Total net charge-offs (recoveries) | |
| (217 | ) | |
| 618 | | |
| (856 | ) | |
| (112 | ) | |
| (139 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Net charge-offs (recoveries) to average loans - non-acquired loans | |
| (0.06 | )% | |
| 0.14 | % | |
| (0.25 | )% | |
| (0.03 | )% | |
| (0.04 | )% |
Net charge-offs (recoveries) to average loans - acquired loans | |
| 0.01 | | |
| - | | |
| - | | |
| - | | |
| - | |
Toral net charge-offs (recoveries) to average loans | |
| (0.05 | ) | |
| 0.14 | | |
| (0.25 | ) | |
| (0.03 | ) | |
| (0.04 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Loan loss provision (recapture) - non-acquired loans | |
$ | 292 | | |
$ | 54 | | |
$ | (1,425 | ) | |
$ | (1,444 | ) | |
$ | (735 | ) |
Loan loss provision (recapture) - acquired loans | |
| 141 | | |
| 64 | | |
| - | | |
| - | | |
| - | |
Total loan loss provision (recapture) | |
| 433 | | |
| 118 | | |
| (1,425 | ) | |
| (1,444 | ) | |
| (735 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Allowance to loans at end of period - non-acquired loans | |
| 1.13 | % | |
| 1.14 | % | |
| 1.26 | % | |
| 1.36 | % | |
| 1.48 | % |
Discount for credit losses to acquired loans at end of period | |
| 3.56 | % | |
| 3.56 | % | |
| - | % | |
| - | % | |
| - | % |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Nonperforming loans - non-acquired loans | |
$ | 16,860 | | |
$ | 18,563 | | |
$ | 18,942 | | |
$ | 21,745 | | |
$ | 26,220 | |
Nonperforming loans - acquired loans | |
| 4,196 | | |
| 2,577 | | |
| - | | |
| - | | |
| - | |
Other real estate owned - non-acquired | |
| 4,738 | | |
| 5,567 | | |
| 5,018 | | |
| 6,198 | | |
| 6,369 | |
Other real estate owned - acquired | |
| 1,431 | | |
| 1,895 | | |
| - | | |
| - | | |
| - | |
Total nonperforming assets | |
$ | 27,225 | | |
$ | 28,602 | | |
$ | 23,960 | | |
$ | 27,943 | | |
$ | 32,589 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Restructured loans (accruing) | |
$ | 23,847 | | |
$ | 24,997 | | |
$ | 28,969 | | |
$ | 28,157 | | |
$ | 24,537 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Purchased noncredit impaired loans | |
$ | 296,839 | | |
$ | 326,066 | | |
$ | - | | |
$ | - | | |
$ | - | |
Purchased credit impaired loans | |
| 7,119 | | |
| 7,814 | | |
| - | | |
| - | | |
| - | |
Total acquired loans | |
$ | 303,958 | | |
$ | 333,880 | | |
$ | 0 | | |
$ | 0 | | |
$ | 0 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Nonperforming loans to loans at end of period - non-acquired loans | |
| 0.91 | % | |
| 1.02 | % | |
| 1.36 | % | |
| 1.63 | % | |
| 2.00 | % |
Nonperforming loans to loans at end of period - acquired loans | |
| 0.23 | | |
| 0.14 | | |
| - | | |
| - | | |
| - | |
Total nonperforming loans to loans at end of period | |
| 1.14 | % | |
| 1.16 | % | |
| 1.36 | % | |
| 1.63 | % | |
| 2.00 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Nonperforming assets to total assets - non-acquired | |
| 0.67 | % | |
| 0.78 | % | |
| 1.01 | % | |
| 1.22 | % | |
| 1.41 | % |
Nonperforming assets to total assets - acquired | |
| 0.17 | | |
| 0.14 | | |
| - | | |
| - | | |
| - | |
Total nonperforming assets to total assets | |
| 0.84 | | |
| 0.92 | | |
| 1.01 | | |
| 1.22 | | |
| 1.41 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Per Share Common Stock | |
| | | |
| | | |
| | | |
| | | |
| | |
Net income (loss) diluted-GAAP basis | |
$ | 0.18 | | |
$ | (0.05 | ) | |
$ | 0.12 | | |
$ | 0.07 | | |
$ | 0.09 | |
Net income (loss) basic-GAAP basis | |
| 0.18 | | |
| (0.05 | ) | |
| 0.12 | | |
| 0.07 | | |
| 0.09 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Cash dividends declared | |
| 0.00 | | |
| 0.00 | | |
| 0.00 | | |
| 0.00 | | |
| 0.00 | |
Book value per share common | |
| 9.71 | | |
| 9.44 | | |
| 9.07 | | |
| 9.02 | | |
| 8.79 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Average Balances | |
| | | |
| | | |
| | | |
| | | |
| | |
Total average assets | |
$ | 3,151,132 | | |
$ | 3,037,061 | | |
$ | 2,305,799 | | |
$ | 2,304,870 | | |
$ | 2,286,998 | |
Less: Intangible assets | |
| 31,221 | | |
| 33,803 | | |
| 237 | | |
| 422 | | |
| 629 | |
Total average tangible assets | |
$ | 3,119,911 | | |
$ | 3,003,258 | | |
$ | 2,305,562 | | |
$ | 2,304,448 | | |
$ | 2,286,369 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Total average equity | |
$ | 320,346 | | |
$ | 319,233 | | |
$ | 239,031 | | |
$ | 236,632 | | |
$ | 231,769 | |
Less: Intangible assets | |
| 31,221 | | |
| 33,803 | | |
| 237 | | |
| 422 | | |
| 629 | |
Total average tangible equity | |
$ | 289,125 | | |
$ | 285,430 | | |
$ | 238,794 | | |
$ | 236,210 | | |
$ | 231,140 | |
(1) |
Calculated on a fully taxable equivalent basis using amortized cost. |
(2) |
These ratios are stated on an annualized basis and are not necessarily indicative of future periods. |
(3) |
The calculation of ROA and ROE do not include the mark-to-market unrealized gains (losses), because the unrealized gains (losses) are not included in net income (loss). |
(4) |
The Company believes that return on average assets and equity excluding the impacts of noncash amortization expense on intangible assets is a better measurement of the Company's trend in earnings growth. |
(5) |
Defined as (noninterest expense less foreclosed property expense and amortization of intangibles) divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains). |
| |
March 31, | | |
December 31, | | |
March 31, | |
SECURITIES | |
2015 | | |
2014 | | |
2014 | |
| |
| | |
| | |
| |
U.S. Treasury and U.S. Government Agencies | |
$ | 3,863 | | |
$ | 3,899 | | |
$ | 100 | |
Mortgage-backed | |
| 575,907 | | |
| 587,933 | | |
| 619,951 | |
Collateralized loan obligations | |
| 126,375 | | |
| 125,225 | | |
| 32,215 | |
Obligations of states and political subdivisions | |
| 24,087 | | |
| 24,318 | | |
| 6,246 | |
Securities Available
for Sale | |
| 730,232 | | |
| 741,375 | | |
| 658,512 | |
| |
| | | |
| | | |
| | |
Mortgage-backed | |
| 181,762 | | |
| 182,076 | | |
| 0 | |
Collateralized loan obligations | |
| 41,299 | | |
| 25,828 | | |
| 0 | |
Securities Held
for Investment | |
| 223,061 | | |
| 207,904 | | |
| - | |
Total Securities | |
$ | 953,293 | | |
$ | 949,279 | | |
$ | 658,512 | |
| |
March 31, | | |
December 31, | | |
March 31, | |
LOANS | |
2015 | | |
2014 | | |
2014 | |
| |
| | |
| | |
| |
Construction and land development | |
$ | 100,341 | | |
$ | 87,036 | | |
$ | 67,197 | |
Real estate mortgage | |
| 1,532,522 | | |
| 1,524,044 | | |
| 1,121,027 | |
Installment loans to individuals | |
| 57,239 | | |
| 52,897 | | |
| 44,601 | |
Commercial and financial | |
| 164,050 | | |
| 157,396 | | |
| 79,401 | |
Other loans | |
| 335 | | |
| 512 | | |
| 230 | |
Total Loans | |
$ | 1,854,487 | | |
$ | 1,821,885 | | |
$ | 1,312,456 | |
AVERAGE BALANCES |
(Unaudited) |
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
| |
QUARTER | | |
Percent Change vs. | |
| |
2015 | | |
2014 | | |
4th Qtr | | |
1st Qtr | |
(Dollars in thousands) | |
First | | |
Fourth | | |
Third | | |
Second | | |
First | | |
2014 | | |
2014 | |
| |
| | |
| | |
| | |
| | |
| | |
| | |
| |
Assets | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Earning assets: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Securities: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Taxable | |
$ | 939,015 | | |
$ | 897,472 | | |
$ | 698,274 | | |
$ | 677,600 | | |
$ | 653,646 | | |
| 4.6 | % | |
| 43.7 | % |
Nontaxable | |
| 15,617 | | |
| 15,871 | | |
| 742 | | |
| 827 | | |
| 1,016 | | |
| (1.6 | ) | |
| 1437.1 | |
Total Securities | |
| 954,632 | | |
| 913,343 | | |
| 699,016 | | |
| 678,427 | | |
| 654,662 | | |
| 4.5 | | |
| 45.8 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Federal funds sold and other investments | |
| 92,934 | | |
| 63,690 | | |
| 98,711 | | |
| 153,410 | | |
| 188,048 | | |
| 45.9 | | |
| (50.6 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Loans, net | |
| 1,848,965 | | |
| 1,794,423 | | |
| 1,365,978 | | |
| 1,338,415 | | |
| 1,307,796 | | |
| 3.0 | | |
| 41.4 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total Earning Assets | |
| 2,896,531 | | |
| 2,771,456 | | |
| 2,163,705 | | |
| 2,170,252 | | |
| 2,150,506 | | |
| 4.5 | | |
| 34.7 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Allowance for loan losses | |
| (17,385 | ) | |
| (18,723 | ) | |
| (17,972 | ) | |
| (19,784 | ) | |
| (20,205 | ) | |
| (7.1 | ) | |
| (14.0 | ) |
Cash and due from banks | |
| 63,689 | | |
| 88,745 | | |
| 44,172 | | |
| 35,735 | | |
| 37,186 | | |
| (28.2 | ) | |
| 71.3 | |
Premises and equipment | |
| 46,605 | | |
| 47,379 | | |
| 34,717 | | |
| 34,948 | | |
| 34,731 | | |
| (1.6 | ) | |
| 34.2 | |
Intangible assets | |
| 31,221 | | |
| 33,803 | | |
| 237 | | |
| 422 | | |
| 629 | | |
| (7.6 | ) | |
| n/m | |
Bank owned life insurance | |
| 35,793 | | |
| 24,417 | | |
| 0 | | |
| 0 | | |
| 0 | | |
| 46.6 | | |
| n/m | |
Other assets | |
| 94,678 | | |
| 89,984 | | |
| 80,940 | | |
| 83,297 | | |
| 84,151 | | |
| 5.2 | | |
| 12.5 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
$ | 3,151,132 | | |
$ | 3,037,061 | | |
$ | 2,305,799 | | |
$ | 2,304,870 | | |
$ | 2,286,998 | | |
| 3.8 | | |
| 37.8 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Liabilities and Shareholders' Equity | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Interest-bearing liabilities: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
NOW | |
$ | 628,480 | | |
$ | 585,895 | | |
$ | 489,138 | | |
$ | 498,285 | | |
$ | 507,313 | | |
| 7.3 | % | |
| 23.9 | % |
Savings deposits | |
| 268,041 | | |
| 263,066 | | |
| 212,479 | | |
| 205,686 | | |
| 197,300 | | |
| 1.9 | | |
| 35.9 | |
Money market accounts | |
| 519,526 | | |
| 457,364 | | |
| 339,937 | | |
| 336,772 | | |
| 330,787 | | |
| 13.6 | | |
| 57.1 | |
Time deposits | |
| 318,343 | | |
| 327,327 | | |
| 252,179 | | |
| 259,325 | | |
| 270,215 | | |
| (2.7 | ) | |
| 17.8 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Federal funds purchased and
other short term borrowings | |
| 212,123 | | |
| 227,806 | | |
| 153,696 | | |
| 150,108 | | |
| 155,656 | | |
| (6.9 | ) | |
| 36.3 | |
Other borrowings | |
| 114,606 | | |
| 114,560 | | |
| 103,610 | | |
| 103,610 | | |
| 103,610 | | |
| 0.0 | | |
| 10.6 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total Interest-Bearing Liabilities | |
| 2,061,119 | | |
| 1,976,018 | | |
| 1,551,039 | | |
| 1,553,786 | | |
| 1,564,881 | | |
| 4.3 | | |
| 31.7 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Demand deposits (noninterest-bearing) | |
| 753,620 | | |
| 728,410 | | |
| 506,478 | | |
| 505,892 | | |
| 481,048 | | |
| 3.5 | | |
| 56.7 | |
Other liabilities | |
| 16,047 | | |
| 13,400 | | |
| 9,251 | | |
| 8,560 | | |
| 9,300 | | |
| 19.8 | | |
| 72.5 | |
Total Liabilities | |
| 2,830,786 | | |
| 2,717,828 | | |
| 2,066,768 | | |
| 2,068,238 | | |
| 2,055,229 | | |
| 4.2 | | |
| 37.7 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Shareholders' equity | |
| 320,346 | | |
| 319,233 | | |
| 239,031 | | |
| 236,632 | | |
| 231,769 | | |
| 0.3 | | |
| 38.2 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
$ | 3,151,132 | | |
$ | 3,037,061 | | |
$ | 2,305,799 | | |
$ | 2,304,870 | | |
$ | 2,286,998 | | |
| 3.8 | | |
| 37.8 | |
n/m = not meaningful
AVERAGE YIELDS / RATES (1) |
(Unaudited) |
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
| |
QUARTER | |
| |
2015 | | |
2014 | |
(Dollars in thousands) | |
First | | |
Fourth | | |
Third | | |
Second | | |
First | |
| |
| | |
| | |
| | |
| | |
| |
Assets | |
| | | |
| | | |
| | | |
| | | |
| | |
Earning assets: | |
| | | |
| | | |
| | | |
| | | |
| | |
Securities: | |
| | | |
| | | |
| | | |
| | | |
| | |
Taxable | |
| 2.09 | % | |
| 2.13 | % | |
| 2.09 | % | |
| 2.14 | % | |
| 2.10 | % |
Nontaxable | |
| 5.89 | | |
| 5.90 | | |
| 7.01 | | |
| 6.77 | | |
| 6.69 | |
Total Securities | |
| 2.15 | | |
| 2.19 | | |
| 2.10 | | |
| 2.15 | | |
| 2.11 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Federal funds sold and other investments | |
| 1.09 | | |
| 1.82 | | |
| 0.85 | | |
| 0.64 | | |
| 0.58 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Loans, net | |
| 4.84 | | |
| 4.67 | | |
| 4.26 | | |
| 4.24 | | |
| 4.29 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Total Earning
Assets | |
| 3.84 | | |
| 3.78 | | |
| 3.40 | | |
| 3.33 | | |
| 3.31 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Liabilities and Shareholders' Equity | |
| | | |
| | | |
| | | |
| | | |
| | |
Interest-bearing liabilities: | |
| | | |
| | | |
| | | |
| | | |
| | |
NOW | |
| 0.08 | | |
| 0.08 | | |
| 0.07 | | |
| 0.08 | | |
| 0.08 | |
Savings deposits | |
| 0.06 | | |
| 0.06 | | |
| 0.04 | | |
| 0.04 | | |
| 0.05 | |
Money market accounts | |
| 0.19 | | |
| 0.12 | | |
| 0.09 | | |
| 0.08 | | |
| 0.08 | |
Time deposits | |
| 0.44 | | |
| 0.45 | | |
| 0.58 | | |
| 0.60 | | |
| 0.61 | |
Federal funds purchased
and other short term borrowings | |
| 0.19 | | |
| 0.17 | | |
| 0.18 | | |
| 0.17 | | |
| 0.17 | |
Other borrowings | |
| 2.70 | | |
| 2.67 | | |
| 2.43 | | |
| 2.43 | | |
| 2.44 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Total Interest-Bearing
Liabilities | |
| 0.32 | | |
| 0.31 | | |
| 0.32 | | |
| 0.33 | | |
| 0.33 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Interest expense as a % of earning assets | |
| 0.23 | | |
| 0.22 | | |
| 0.23 | | |
| 0.23 | | |
| 0.24 | |
Net interest income as a % of earning assets | |
| 3.62 | | |
| 3.56 | | |
| 3.17 | | |
| 3.10 | | |
| 3.07 | |
| (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. |
INTEREST INCOME / EXPENSE (1) |
(Unaudited) |
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
| |
QUARTER | | |
Percent Change vs. | |
| |
2015 | | |
2014 | | |
4th Qtr | | |
1st Qtr | |
(Dollars in thousands) | |
First | | |
Fourth | | |
Third | | |
Second | | |
First | | |
2014 | | |
2014 | |
| |
| | |
| | |
| | |
| | |
| | |
| | |
| |
Assets | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Earning assets: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Securities: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Taxable | |
$ | 4,898 | | |
$ | 4,773 | | |
$ | 3,656 | | |
$ | 3,630 | | |
$ | 3,434 | | |
| 2.6 | % | |
| 42.6 | % |
Nontaxable | |
| 230 | | |
| 234 | | |
| 13 | | |
| 14 | | |
| 17 | | |
| (1.7 | ) | |
| 1,252.9 | |
Total Securities | |
| 5,128 | | |
| 5,007 | | |
| 3,669 | | |
| 3,644 | | |
| 3,451 | | |
| 2.4 | | |
| 48.6 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Federal funds sold and other investments | |
| 249 | | |
| 292 | | |
| 211 | | |
| 246 | | |
| 268 | | |
| (14.7 | ) | |
| (7.1 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Loans, net | |
| 22,065 | | |
| 21,123 | | |
| 14,665 | | |
| 14,151 | | |
| 13,849 | | |
| 4.5 | | |
| 59.3 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total Earning Assets | |
| 27,442 | | |
| 26,422 | | |
| 18,545 | | |
| 18,041 | | |
| 17,568 | | |
| 3.9 | | |
| 56.2 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Liabilities | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Interest-bearing liabilities: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
NOW | |
| 117 | | |
| 112 | | |
| 91 | | |
| 94 | | |
| 102 | | |
| 4.5 | | |
| 14.7 | |
Savings deposits | |
| 39 | | |
| 42 | | |
| 24 | | |
| 23 | | |
| 24 | | |
| (7.1 | ) | |
| 62.5 | |
Money market accounts | |
| 245 | | |
| 143 | | |
| 74 | | |
| 67 | | |
| 68 | | |
| 71.3 | | |
| 260.3 | |
Time deposits | |
| 347 | | |
| 375 | | |
| 370 | | |
| 386 | | |
| 407 | | |
| (7.5 | ) | |
| (14.7 | ) |
Federal funds purchased and | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
other short term borrowings | |
| 98 | | |
| 97 | | |
| 69 | | |
| 65 | | |
| 66 | | |
| 1.0 | | |
| 48.5 | |
Other borrowings | |
| 762 | | |
| 770 | | |
| 635 | | |
| 627 | | |
| 624 | | |
| (1.0 | ) | |
| 22.1 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total Interest-Bearing Liabilities | |
| 1,608 | | |
| 1,539 | | |
| 1,263 | | |
| 1,262 | | |
| 1,291 | | |
| 4.5 | | |
| 24.6 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net interest income | |
| 25,834 | | |
| 24,883 | | |
| 17,282 | | |
| 16,779 | | |
| 16,277 | | |
| 3.8 | | |
| 58.7 | |
(1) On a fully taxable equivalent basis. Fees on loans
have been included in interest on loans
CONSOLIDATED QUARTERLY FINANCIAL DATA |
|
(Unaudited) |
|
|
|
|
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
| |
2015 | | |
2014 | |
(Dollars in thousands) | |
First
Quarter | | |
Fourth Quarter | | |
Third Quarter | | |
Second Quarter | | |
First Quarter | |
| |
| | |
| | |
| | |
| | |
| |
Customer Relationship Funding (Period
End) | |
| | | |
| | | |
| | | |
| | | |
| | |
Demand deposits (noninterest bearing) | |
| | | |
| | | |
| | | |
| | | |
| | |
Commercial | |
$ | 546,876 | | |
$ | 481,327 | | |
$ | 301,630 | | |
$ | 293,515 | | |
$ | 291,221 | |
Retail | |
| 191,262 | | |
| 190,120 | | |
| 162,392 | | |
| 167,172 | | |
| 173,698 | |
Public funds | |
| 38,529 | | |
| 41,201 | | |
| 39,329 | | |
| 33,223 | | |
| 34,636 | |
Other | |
| 16,669 | | |
| 12,590 | | |
| 18,650 | | |
| 15,888 | | |
| 14,370 | |
| |
| 793,336 | | |
| 725,238 | | |
| 522,001 | | |
| 509,798 | | |
| 513,925 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
NOW accounts | |
| | | |
| | | |
| | | |
| | | |
| | |
Commercial | |
| 66,532 | | |
| 58,173 | | |
| 41,131 | | |
| 41,423 | | |
| 41,281 | |
Retail | |
| 416,766 | | |
| 407,653 | | |
| 324,690 | | |
| 327,762 | | |
| 329,226 | |
Public funds | |
| 151,556 | | |
| 186,527 | | |
| 114,006 | | |
| 124,742 | | |
| 134,191 | |
| |
| 634,854 | | |
| 652,353 | | |
| 479,827 | | |
| 493,927 | | |
| 504,698 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Total Transaction Accounts | |
| | | |
| | | |
| | | |
| | | |
| | |
Commercial | |
| 613,408 | | |
| 539,500 | | |
| 342,761 | | |
| 334,938 | | |
| 332,502 | |
Retail | |
| 608,028 | | |
| 597,773 | | |
| 487,082 | | |
| 494,934 | | |
| 502,924 | |
Public funds | |
| 190,085 | | |
| 227,728 | | |
| 153,335 | | |
| 157,965 | | |
| 168,827 | |
Other | |
| 16,669 | | |
| 12,590 | | |
| 18,650 | | |
| 15,888 | | |
| 14,370 | |
| |
| 1,428,190 | | |
| 1,377,591 | | |
| 1,001,828 | | |
| 1,003,725 | | |
| 1,018,623 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Savings accounts | |
| 272,963 | | |
| 264,738 | | |
| 215,076 | | |
| 208,333 | | |
| 202,170 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Money market accounts | |
| | | |
| | | |
| | | |
| | | |
| | |
Commercial | |
| 185,668 | | |
| 172,417 | | |
| 118,385 | | |
| 114,662 | | |
| 109,158 | |
Retail | |
| 274,203 | | |
| 264,725 | | |
| 218,376 | | |
| 213,927 | | |
| 221,762 | |
Public funds | |
| 136,729 | | |
| 13,030 | | |
| 7,965 | | |
| 6,657 | | |
| 6,488 | |
| |
| 596,600 | | |
| 450,172 | | |
| 344,726 | | |
| 335,246 | | |
| 337,408 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Time certificates of deposit | |
| 312,072 | | |
| 324,033 | | |
| 246,920 | | |
| 258,233 | | |
| 261,594 | |
Total
Deposits | |
$ | 2,609,825 | | |
$ | 2,416,534 | | |
$ | 1,808,550 | | |
$ | 1,805,537 | | |
$ | 1,819,795 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Sweep repurchase agreements | |
$ | 170,023 | | |
$ | 153,640 | | |
$ | 124,436 | | |
$ | 141,662 | | |
$ | 156,136 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Total core customer funding
(1) | |
$ | 2,467,776 | | |
$ | 2,246,141 | | |
$ | 1,686,066 | | |
$ | 1,688,966 | | |
$ | 1,714,337 | |
(1) Total deposits and sweep repurchase agreements, excluding
certificates of deposits.
QUARTERLY TRENDS - LOANS AT END OF PERIOD (Dollars in Millions)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
| |
2015 | | |
2014 | |
| |
1st Qtr | | |
4th Qtr | | |
3rd Qtr | | |
2nd Qtr | | |
1st Qtr | |
Installment loans to individuals | |
| | | |
| | | |
| | | |
| | | |
| | |
Automobile and trucks | |
$ | 10.0 | | |
$ | 7.8 | | |
$ | 6.6 | | |
$ | 6.1 | | |
$ | 6.2 | |
Marine loans | |
| 28.7 | | |
| 26.2 | | |
| 24.4 | | |
| 23.3 | | |
| 20.8 | |
Other | |
| 18.5 | | |
| 18.9 | | |
| 16.6 | | |
| 15.8 | | |
| 17.6 | |
| |
| 57.2 | | |
| 52.9 | | |
| 47.6 | | |
| 45.2 | | |
| 44.6 | |
Construction and land development to individuals | |
| | | |
| | | |
| | | |
| | | |
| | |
Lot loans | |
| 16.0 | | |
| 15.5 | | |
| 13.3 | | |
| 13.1 | | |
| 13.3 | |
Construction | |
| 23.0 | | |
| 18.2 | | |
| 17.0 | | |
| 16.7 | | |
| 24.4 | |
| |
| 39.0 | | |
| 33.7 | | |
| 30.3 | | |
| 29.8 | | |
| 37.7 | |
Residential real estate | |
| | | |
| | | |
| | | |
| | | |
| | |
Adjustable | |
| 436.3 | | |
| 441.2 | | |
| 417.0 | | |
| 407.7 | | |
| 392.5 | |
Fixed rate | |
| 93.0 | | |
| 93.9 | | |
| 92.2 | | |
| 91.0 | | |
| 89.8 | |
Home equity mortgages | |
| 69.6 | | |
| 71.8 | | |
| 52.1 | | |
| 54.9 | | |
| 60.6 | |
Home equity lines | |
| 84.7 | | |
| 80.0 | | |
| 62.0 | | |
| 53.2 | | |
| 49.7 | |
| |
| 683.6 | | |
| 686.9 | | |
| 623.3 | | |
| 606.8 | | |
| 592.6 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
TOTAL CONSUMER | |
| 779.8 | | |
| 773.5 | | |
| 701.2 | | |
| 681.8 | | |
| 674.9 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Commercial & financial | |
| 164.1 | | |
| 157.4 | | |
| 91.3 | | |
| 87.3 | | |
| 79.4 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Construction and land development for commercial | |
| | | |
| | | |
| | | |
| | | |
| | |
Residential | |
| | | |
| | | |
| | | |
| | | |
| | |
Single family residences | |
| 9.1 | | |
| 6.8 | | |
| 4.8 | | |
| 5.1 | | |
| 1.8 | |
Single family land and lots | |
| 5.9 | | |
| 6.1 | | |
| 4.3 | | |
| 4.5 | | |
| 4.7 | |
Townhomes | |
| 1.1 | | |
| 0.3 | | |
| - | | |
| 1.1 | | |
| 0.5 | |
Multifamily | |
| 2.8 | | |
| 3.0 | | |
| 3.5 | | |
| 3.5 | | |
| 3.6 | |
| |
| 18.9 | | |
| 16.2 | | |
| 12.6 | | |
| 14.2 | | |
| 10.6 | |
Commercial | |
| | | |
| | | |
| | | |
| | | |
| | |
Office buildings | |
| 2.8 | | |
| 1.6 | | |
| - | | |
| - | | |
| - | |
Retail trade | |
| 1.0 | | |
| 0.7 | | |
| 2.5 | | |
| 2.4 | | |
| 2.9 | |
Restaurant | |
| 1.0 | | |
| - | | |
| - | | |
| - | | |
| - | |
Land | |
| 20.9 | | |
| 18.2 | | |
| 4.2 | | |
| 4.1 | | |
| 4.4 | |
Healthcare | |
| - | | |
| - | | |
| - | | |
| - | | |
| 7.1 | |
Churches and educational facilities | |
| 1.7 | | |
| 2.9 | | |
| 1.0 | | |
| 1.6 | | |
| 1.1 | |
Lodging | |
| 7.1 | | |
| 7.1 | | |
| 6.9 | | |
| 5.2 | | |
| 3.4 | |
Convenience stores | |
| 3.5 | | |
| 3.2 | | |
| 0.3 | | |
| 0.1 | | |
| - | |
Industrial buildings | |
| 2.3 | | |
| 2.7 | | |
| - | | |
| - | | |
| - | |
Auto and RV dealerships | |
| 0.3 | | |
| 0.3 | | |
| - | | |
| - | | |
| - | |
Other | |
| 1.9 | | |
| 0.4 | | |
| - | | |
| - | | |
| - | |
| |
| 42.5 | | |
| 37.1 | | |
| 14.9 | | |
| 13.4 | | |
| 18.9 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Total construction and land development | |
| 61.4 | | |
| 53.3 | | |
| 27.5 | | |
| 27.6 | | |
| 29.5 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Commercial real estate | |
| | | |
| | | |
| | | |
| | | |
| | |
Office buildings | |
| 239.3 | | |
| 235.7 | | |
| 127.1 | | |
| 122.8 | | |
| 120.0 | |
Retail trade | |
| 201.8 | | |
| 205.5 | | |
| 163.4 | | |
| 142.8 | | |
| 142.0 | |
Industrial | |
| 164.5 | | |
| 157.3 | | |
| 89.6 | | |
| 82.2 | | |
| 76.7 | |
Healthcare | |
| 50.9 | | |
| 50.6 | | |
| 40.7 | | |
| 41.6 | | |
| 44.1 | |
Churches and educational facilities | |
| 27.1 | | |
| 26.1 | | |
| 26.0 | | |
| 26.7 | | |
| 26.9 | |
Recreation | |
| 3.2 | | |
| 3.2 | | |
| 3.3 | | |
| 3.3 | | |
| 2.4 | |
Multifamily | |
| 17.1 | | |
| 17.4 | | |
| 17.0 | | |
| 18.7 | | |
| 17.2 | |
Mobile home parks | |
| 1.6 | | |
| 1.7 | | |
| 1.7 | | |
| 1.7 | | |
| 1.8 | |
Lodging | |
| 16.7 | | |
| 16.9 | | |
| 16.9 | | |
| 17.0 | | |
| 16.9 | |
Restaurant | |
| 5.5 | | |
| 3.3 | | |
| 3.3 | | |
| 3.9 | | |
| 3.7 | |
Agricultural | |
| 2.4 | | |
| 2.6 | | |
| 2.6 | | |
| 4.6 | | |
| 4.7 | |
Convenience stores | |
| 20.7 | | |
| 21.2 | | |
| 23.3 | | |
| 20.9 | | |
| 22.0 | |
Marina | |
| 18.3 | | |
| 18.5 | | |
| 18.6 | | |
| 18.5 | | |
| 20.6 | |
Other | |
| 79.8 | | |
| 77.2 | | |
| 37.2 | | |
| 33.5 | | |
| 29.4 | |
| |
| 848.9 | | |
| 837.2 | | |
| 570.7 | | |
| 538.2 | | |
| 528.4 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
TOTAL COMMERCIAL | |
| 1,074.4 | | |
| 1,047.9 | | |
| 689.5 | | |
| 653.1 | | |
| 637.3 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Other | |
| 0.3 | | |
| 0.5 | | |
| 0.4 | | |
| 0.3 | | |
| 0.2 | |
| |
$ | 1,854.5 | | |
$ | 1,821.9 | | |
$ | 1,391.1 | | |
$ | 1,335.2 | | |
$ | 1,312.4 | |
QUARTERLY TRENDS - INCREASE (DECREASE) IN LOANS BY
QUARTER (Dollars in Millions)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
| |
2015 | | |
2014 | |
| |
1st Qtr | | |
4th Qtr | | |
3rd Qtr | | |
2nd Qtr | | |
1st Qtr | |
Installment loans to individuals | |
| | | |
| | | |
| | | |
| | | |
| | |
Automobile and trucks | |
$ | 2.2 | | |
$ | 1.2 | | |
$ | 0.5 | | |
$ | (0.1 | ) | |
$ | (0.4 | ) |
Marine loans | |
| 2.5 | | |
| 1.8 | | |
| 1.1 | | |
| 2.5 | | |
| 0.6 | |
Other | |
| (0.4 | ) | |
| 2.3 | | |
| 0.8 | | |
| (1.8 | ) | |
| (0.3 | ) |
| |
| 4.3 | | |
| 5.3 | | |
| 2.4 | | |
| 0.6 | | |
| (0.1 | ) |
Construction and land development to individuals | |
| | | |
| | | |
| | | |
| | | |
| | |
Lot loans | |
| 0.5 | | |
| 2.2 | | |
| 0.2 | | |
| (0.2 | ) | |
| 0.4 | |
Construction | |
| 4.8 | | |
| 1.2 | | |
| 0.3 | | |
| (7.7 | ) | |
| 3.1 | |
| |
| 5.3 | | |
| 3.4 | | |
| 0.5 | | |
| (7.9 | ) | |
| 3.5 | |
Residential real estate | |
| | | |
| | | |
| | | |
| | | |
| | |
Adjustable | |
| (4.9 | ) | |
| 24.2 | | |
| 9.3 | | |
| 15.2 | | |
| 0.6 | |
Fixed rate | |
| (0.9 | ) | |
| 1.7 | | |
| 1.2 | | |
| 1.2 | | |
| (1.3 | ) |
Home equity mortgages | |
| (2.2 | ) | |
| 19.7 | | |
| (2.8 | ) | |
| (5.7 | ) | |
| (1.4 | ) |
Home equity lines | |
| 4.7 | | |
| 18.0 | | |
| 8.8 | | |
| 3.5 | | |
| 2.0 | |
| |
| (3.3 | ) | |
| 63.6 | | |
| 16.5 | | |
| 14.2 | | |
| (0.1 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
TOTAL CONSUMER | |
| 6.3 | | |
| 72.3 | | |
| 19.4 | | |
| 6.9 | | |
| 3.3 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Commercial & financial | |
| 6.7 | | |
| 66.1 | | |
| 4.0 | | |
| 7.9 | | |
| 0.8 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Construction and land development for commercial | |
| | | |
| | | |
| | | |
| | | |
| | |
Residential | |
| | | |
| | | |
| | | |
| | | |
| | |
Single family residences | |
| 2.3 | | |
| 2.0 | | |
| (0.3 | ) | |
| 3.3 | | |
| (0.2 | ) |
Single family land and lots | |
| (0.2 | ) | |
| 1.8 | | |
| (0.2 | ) | |
| (0.2 | ) | |
| (0.2 | ) |
Townhomes | |
| 0.8 | | |
| 0.3 | | |
| (1.1 | ) | |
| 0.6 | | |
| 0.5 | |
Multifamily | |
| (0.2 | ) | |
| (0.5 | ) | |
| - | | |
| (0.1 | ) | |
| (0.1 | ) |
| |
| 2.7 | | |
| 3.6 | | |
| (1.6 | ) | |
| 3.6 | | |
| 0.0 | |
Commercial | |
| | | |
| | | |
| | | |
| | | |
| | |
Office buildings | |
| 1.2 | | |
| 1.6 | | |
| - | | |
| - | | |
| - | |
Retail trade | |
| 0.3 | | |
| (1.8 | ) | |
| 0.1 | | |
| (0.5 | ) | |
| (4.8 | ) |
Restaurant | |
| 1.0 | | |
| - | | |
| - | | |
| - | | |
| - | |
Land | |
| 2.7 | | |
| 14.0 | | |
| 0.1 | | |
| (0.3 | ) | |
| (0.5 | ) |
Healthcare | |
| - | | |
| - | | |
| - | | |
| (7.1 | ) | |
| 1.7 | |
Churches and educational facilities | |
| (1.2 | ) | |
| 1.9 | | |
| (0.6 | ) | |
| 0.5 | | |
| (2.7 | ) |
Lodging | |
| - | | |
| 0.2 | | |
| 1.7 | | |
| 1.8 | | |
| 2.5 | |
Convenience stores | |
| 0.3 | | |
| 2.9 | | |
| 0.2 | | |
| 0.1 | | |
| - | |
Industrial buildings | |
| (0.4 | ) | |
| 2.7 | | |
| - | | |
| - | | |
| - | |
Auto and RV dealerships | |
| - | | |
| 0.3 | | |
| - | | |
| - | | |
| - | |
Other | |
| 1.5 | | |
| 0.4 | | |
| - | | |
| - | | |
| - | |
| |
| 5.4 | | |
| 22.2 | | |
| 1.5 | | |
| (5.5 | ) | |
| (3.8 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Total construction and land development | |
| 8.1 | | |
| 25.8 | | |
| (0.1 | ) | |
| (1.9 | ) | |
| (3.8 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Commercial real estate | |
| | | |
| | | |
| | | |
| | | |
| | |
Office buildings | |
| 3.6 | | |
| 108.6 | | |
| 4.3 | | |
| 2.8 | | |
| 1.3 | |
Retail trade | |
| (3.7 | ) | |
| 42.1 | | |
| 20.6 | | |
| 0.8 | | |
| 11.4 | |
Industrial | |
| 7.2 | | |
| 67.7 | | |
| 7.4 | | |
| 5.5 | | |
| (4.4 | ) |
Healthcare | |
| 0.3 | | |
| 9.9 | | |
| (0.9 | ) | |
| (2.5 | ) | |
| (1.4 | ) |
Churches and educational facilities | |
| 1.0 | | |
| 0.1 | | |
| (0.7 | ) | |
| (0.2 | ) | |
| 1.6 | |
Recreation | |
| - | | |
| (0.1 | ) | |
| - | | |
| 0.9 | | |
| (0.1 | ) |
Multifamily | |
| (0.3 | ) | |
| 0.4 | | |
| (1.7 | ) | |
| 1.5 | | |
| 0.4 | |
Mobile home parks | |
| (0.1 | ) | |
| - | | |
| - | | |
| (0.1 | ) | |
| (0.1 | ) |
Lodging | |
| (0.2 | ) | |
| - | | |
| (0.1 | ) | |
| 0.1 | | |
| (0.2 | ) |
Restaurant | |
| 2.2 | | |
| - | | |
| (0.6 | ) | |
| 0.2 | | |
| - | |
Agricultural | |
| (0.2 | ) | |
| - | | |
| (2.0 | ) | |
| (0.1 | ) | |
| (2.3 | ) |
Convenience stores | |
| (0.5 | ) | |
| (2.1 | ) | |
| 2.4 | | |
| (1.1 | ) | |
| 1.2 | |
Marina | |
| (0.2 | ) | |
| (0.1 | ) | |
| 0.1 | | |
| (2.1 | ) | |
| (0.7 | ) |
Other | |
| 2.6 | | |
| 40.0 | | |
| 3.7 | | |
| 4.1 | | |
| 1.3 | |
| |
| 11.7 | | |
| 266.5 | | |
| 32.5 | | |
| 9.8 | | |
| 8.0 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
TOTAL COMMERCIAL | |
| 26.5 | | |
| 358.4 | | |
| 36.4 | | |
| 15.8 | | |
| 5.0 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Other | |
| (0.2 | ) | |
| 0.1 | | |
| 0.1 | | |
| 0.1 | | |
| (0.1 | ) |
| |
$ | 32.6 | | |
$ | 430.8 | | |
$ | 55.9 | | |
$ | 22.8 | | |
$ | 8.2 | |
EXHIBIT 99.2
To Form 8-K dated April 28, 2015
Seacoast Banking Corporation of Florida
First Quarter 2015 Earnings Conference Call
April 29, 2015
9:00 AM Eastern Time
Company Participants:
Dennis S. Hudson, III, Chairman and Chief Executive Officer, Seacoast
Banking Corporation of Florida
Charles K. Cross, Jr., Executive Vice President, Commercial Banking,
Seacoast Banking Corporation of Florida
Charles Shaffer, Executive Vice President, Community Banking, Seacoast
Banking Corporation of Florida
Stephen A. Fowle, Executive Vice President and Chief Financial Officer,
Seacoast Banking Corporation of Florida
William R. Hahl, Executive Vice President and Former Chief Financial
Officer, Seacoast Banking Corporation of Florida
Other Participants:
Taylor Brodarick, Vice President, Guggenheim Securities, LLC
Joseph Fenech, Managing Director - Equity Research, Hovde Group
Management Remarks:
Operator: Welcome to the Seacoast First
Quarter Earnings Conference call. My name is Christine and I will be the operator for today’s call. At this time all participants
are in a listen-only mode. Later we will conduct a question-and-answer session. Please note that this conference is being recorded.
I will now turn the call over to Mr. Dennis
Hudson. You may begin.
Dennis Hudson: Thank you very much,
and welcome to the Seacoast’s First Quarter 2015 Conference Call. Before I begin, as always, I direct your attention to the
statement contained at the end of the press release regarding forward-looking statements. During our call we are going to be discussing
certain issues that constitute forward-looking statements within the meaning of the Securities and Exchange Act and as a result
our comments are intended to be covered within the meaning of the Act. The earnings release and the slides that go along with this
call are also posted on our website SeacoastBanking.net and they can be found under Presentations.
With me today are Chuck Cross, who heads up
our Commercial Business banking line; Chuck Shaffer, who heads up our Consumer and Small Business banking line; and David Houdeshell,
our Chief Credit Officer. Also with me today is Bill Hahl, who is retiring as our CFO and has served us very well over the past
25 years. Also our new CFO, Steve Fowle is here, and as you know he joined our team just a few weeks ago. So welcome, everybody.
We started the year without missing a beat,
continuing to build on the momentum we established last year. Just a few months after we closed and successfully integrated the
acquisition of BANKshares in Orlando, we announced our agreement to acquire Grand Bankshares in North Palm Beach. As we noted in
the release, both these acquisitions expand our presence in two of Florida’s fastest growing markets and position Seacoast
to benefit from the accelerating economic recovery here in the state.
Profitability in the first quarter was strong
with net income growing 155% year-over-year to $5.9 million or $0.18 per share, up from $2.3 million or $0.09 per share in the
first quarter a year ago. If you exclude the cost for mergers and acquisitions in the quarter, adjusted net income in the first
quarter grew 48% to $6.2 million or $0.19 per share from $4.2 million or $0.13 per share in the preceding quarter.
Our loan pipelines remain very strong. We are
up 37% in the quarter, jumping to $82.1 million, which is the highest level we have seen for some time. Net loans increased at
a 7% annualized rate in the quarter and grew 41% year-over-year. Excluding the BANKshares loans that were acquired in the fourth
quarter, the loan portfolio grew 15.9% year-over-year. Deposits are also growing at a darn good clip, up 8% in the quarter and
43% in the year, and that growth was about 15% in terms of total deposits when you exclude the impact of the acquisition.
Our loan portfolio and our customer growth
rates, as well as product penetration within our customer base, is continuing to build momentum, and we think the potential for
both our existing markets and our new markets is very favorable. Over the first quarter, revenues grew 52% year-over-year, reflecting
the acquisition, the growing impact of our strategic investment and an improving Florida marketplace.
And Florida continues to generate a pretty
sunny economic forecast. According to the University of Central Florida, 2014 had solid job growth, declining unemployment and
high consumer confidence—and it just keeps getting better. Economic growth picked up considerably across Florida over the
past year. Non-farm employment rose 3.7% as businesses and the public sector created some 285,000 new jobs. Growth continues to
be exceptionally broad based in every key industry category, posting solid gains over the past year. Construction employment accounts
for just 5.2% of Florida’s employment base, down from 8.7% at the height of the housing boom and the long run average of
around 6.5%.
Florida’s job market has improved on
a number of important fronts. Job gains are much more diverse than they had been earlier, and the few sectors that had been lagging,
most notably financial services and government, are now growing modestly. Job growth has also picked up across the stage with all
of the state’s 24 metropolitan areas posting solid year-to-year job gains. Our unemployment rate has also fallen dramatically
and now stands at 5.7% for March, down from 6.5% a year ago.
Housing demand is also on solid ground. Home
sales in Florida are picking up, with the number of closed sales in Florida 10% higher than a year ago and even more growth in
pending sales, indicating the number of closed sales should remain high in the near-term. However, despite the stronger than average
growth in sales, home price appreciation is merely tracking the national average and prices are still far below their pre-recession
peak. We are seeing strong demand for new housing with new permits for both single-family and multifamily units rebounding, but
not anywhere close to the levels that we saw before the recession, which is a good thing.
As we announced a couple of weeks ago, we are
expanding our presence in the Palm Beach County market with the acquisition of Grand Bankshares, and we think it’s a terrific
market. West Palm Beach also posted solid gains in 2014, with non-farm payrolls 3.3% higher than a year earlier. Home prices are
up 8.2% from a year ago as rapidly growing population and strong immigration into the state continues to fuel demand for housing.
West Palm Beach should continue to see reasonable improvements, I think, in its economy. An aging population will increase demand
for already large and rapidly growing health services industry. Above average population growth and in-migration is going to drive
gains as well in the local economy.
So we like operating in the Florida economy.
We think we have a franchise in some of the best territory in the state, and frankly in the U.S., and we think it’s starting
to show on our financial results.
Which brings me back to the first quarter financial
performance: Our adjusted earnings for the quarter increased 48% to $6.2 million or $0.19 a share, up from $4.2 million or $0.13
per share last quarter, and more than double the $2.5 million or $0.10 a share earned in the first quarter a year ago. These numbers
exclude adjustments for one-timers, and those one-timers were primarily our merger related costs, branch closing costs and a few
other items we listed in the press release.
Our adjusted pretax pre-provision earnings
were up 39% over the fourth quarter, and they were more than triple what we generated in the first quarter of last year. This improvement
in adjusted pretax pre-provision earnings shows the growing earnings power of our franchise fueled by the addition of the Greater
Orlando market which came from our acquisition, the streamlining initiatives we put in place last year, the organic growth we are
generating from our lending teams and our technology-based marketing efforts.
Loan growth continued to build as well during
the first quarter, with the portfolio increasing 41% year-over-year, with solid organic growth in every category as our lending
teams continue to reach out to new and existing customers. Total loans grew at a 7% annualized rate to $1.85 billion at quarter
end. Our commercial pipeline of loans in the first quarter, which is normally seasonally slow, came in, as I said earlier, at $82.1
million and was much better than we have seen for several years. The residential pipeline showed even more strength, more than
doubling to $48.5 million at the end of the quarter from $21.4 million at the end of December and up from $26.7 million a year
ago. We are very pleased with the pace of activity and the quality of loans that are coming to our lenders.
While commercial lending is seasonally slow
in the first quarter, deposit gathering is typically just the opposite—and this year was no exception. Our low cost funding
growth was robust in the first quarter, with non-interest deposits up 9.4% in the quarter and up 13.8% for the year, excluding
any impact from the acquisition. Overall deposit growth was up 33% for the year and was up 15% without the contribution from the
BANKshares acquisition. Much of the growth in our non-interest bearing deposits over the past couple of quarters reflects our success
in attracting commercial and small business customers, both through our Accelerate channel and also across our branch system. In
fact, our DDA mix has now improved to 30.4% of total deposits, up from 28.2% of total deposits just over the last year. Our total
cost to deposits in the first quarter was 12 basis points.
In addition to solid loan growth, the accretion
from the acquired portfolio contributed to margin expansion in the quarter. Our NIM came in at 3.62%, which was a bit better than
we had estimated last quarter. We have been predicting that margin will stabilize at best and possibly trend a few basis points
lower if interest rates remain unchanged. So while a four basis point improvement was good news in the quarter, we are still predicting
that, all things equal, the margin will be in a range closer to 3.5% or perhaps slightly lower over the remainder of 2015.
Accretion from prepayments of some of our purchased
loans added 9 or 10 basis points to the NIM this quarter. If interest rates increase, we could see further improvement in the net
interest margin in the short-term. We are asset-sensitive and our ALCO model indicates that when rates increase 100 basis points,
net interest income should increase approximately 9%.
Our non-interest income grew 2.3% in the quarter
and 31.5% year-over-year with strong contributions from mortgage banking fees and interchange income. As we noted last quarter,
we added a new source of income from bank-owned life insurance compared to last year’s first quarter, which was partially
generated from investments acquired with BANKshares and from new investments we initiated during the quarter. Marine finance fees
were down in the quarter reflecting our decision to start portfolioing a few of these loans rather than selling them in the secondary
market.
We’ve talked about our efforts to reduce
overhead costs and streamline our operating platform over the past year, and our non-interest expense shows solid improvement in
operating efficiencies. Our core operating expenses were down $1.7 million in the quarter or 7%, which includes the operations
of BANKshares. Our efficiency ratio came in at 67.4% excluding merger costs for the quarter. So we are pretty happy with this progress
and we are looking to continue to make further improvements to get down to our goal in the mid-60s in the near future.
In summary, I’m delighted with our performance
this quarter. Our team has really come together to put in place some great programs that are starting to show some very interesting
results. I think we even have more potential opportunities to capitalize as we look forward in the coming quarters. So we will
keep you posted. At this point let’s open it up for a few questions for the team.
Q & A Session:
Operator: Our first question comes from
Joe Fenech from Hovde Group.
Joe Fenech: More of a big picture
question for you, Denny. Relative to where you were a year ago, obviously the improvement in profitability to today has been
pretty stark. My question is how far do you think you could take this with the company as it’s structured today, pro
forma of course with Grand? In other words, is a sustainable 1% ROA achievable in next 12 months or so; or are there some
things that are little out of your control like higher rates and maybe a deal that you need to happen to get you there?
Dennis Hudson: Good question. I
think we continue to head towards the 1% return on asset mark to get our performance back to what I would consider an
acceptable level, and I think that is certainly doable over time. The answer to the question will depend on what kind
of investments we are making today and the investments we made two years ago are paying off big time today. If you think
about it, our Accelerate channel now has operating expenses of probably around $5 million a year; those expenses didn’t
exist two years ago, and they are now producing tremendous results for us.
So it’s a careful balance, as you well
know, between the investments needed to get us accelerating down the road more quickly and the need for improved operating performance.
I think we achieved a significant milestone this quarter as we brought together all of the things we talked about in the short-term
over the last year, notably the cost-outs that we worked on, and the impact of the acquisition being as good or better than we
had advertised. We have another acquisition that, as you know, provides meaningful accretion starting in the second half of this
year, and I think, again, as we look forward we will continue to see growth in earnings and progress against this medium-term goal
of getting to a 1% return on assets. I hope that helps.
Joe Fenech: Denny, you talked
in your notes about Grand, you talked about the purchase capital contribution to NIM this past quarter and your NIM outlook.
Does that outlook include your expectations pro forma from Grand? And if not, what is your thought on the impact that has to
that 3.50% or so NIM guidance you gave?
Dennis Hudson: And the answer is that
it does not include the impact of the Grand acquisition. We were just simply looking at a steady rate over the next quarter or
two, just kind of a steady to slightly down margin.
Joe Fenech: So your early read is that
Grand is accretive to that 3.50% or so margin, or too early to tell?
Steve Fowle: I’d expect that acquisitions
tend to be accretive but tend to be very lumpy in terms of when the accretion hits and doesn’t hit.
Joe Fenech: And then, Denny, whether
seasonal—
Dennis Hudson: I think what
you are trying to ask is, what kind of impact is Grand going to have on margin? As we know, there will be lots of merger
charges in Q3, but the margin should be as good or probably slightly accretive.
Joe Fenech: And then, Denny, were there
seasonal considerations or anything unusual on the expense base this quarter, or is the just under $23 million a good quarterly
run rate to use here on a core basis going forward?
Dennis Hudson: I think it’s a
good run rate.
Joe Fenech: Then last one for me, on
the M&A front, Denny, I know you have done some attractive smaller deals here. Is there a larger one or two out there that
makes sense for you, or are these smaller transactions more along the lines of what we could see going forward? What’s your
appetite, generally, for additional M&A?
Dennis Hudson: I think our focus remains
on continuing to grow organically; that’s our key objective here. There is tremendous value-add to long-term shareholder
value if we can get organic growth. Obviously, our priority would be acquisitions that would tend to be smaller probably and would
fit well into our franchise, but our focus remains on improving our performance, growing organically, and finding opportunistic
type opportunities out ahead of us in terms of acquisition. The two that we have done over the last year or so we think are going
to be very, very helpful to us. And we would hope if we did something else, that it would be equally good in terms of helping us
improve our performance and build out our ability to grow organically over time.
Operator: Our next question comes from
Taylor Brodarick from Guggenheim Securities.
Taylor Brodarick: I guess, the first
question will be on deposit pricing. Obviously, it’s been kind of held in a low 30 bps, but I’m wondering about the
pricing pressure going forward given the strength of your markets, and are you willing to not be as flexible on pricing given your
loan to deposit ratio?
Chuck Shaffer: I wouldn’t expect
pricing to go up much as we move forward. If we grow the deposit base, we are continuing to focus on small business and consumer.
We have taken a few opportunities where some governmental things came along and put that in the base. As we move into Central Florida
market and South Florida, it is more competitive on the deposit side, there are more offers out there, but I wouldn't expect it
to materially impact our cost of deposits.
Dennis Hudson: It’s important
to keep your eye on our strategic focus as we look ahead, and our strategic focus is on no cost, low cost deposits, period. We
see tremendous opportunity for us to gain share as we move forward, and that’s been proven over the last several years as
we improved our deposit mix.
Taylor Brodarick: I guess just
hearing some of your other in-market peers talk about rationality a little south of your core market, I’m just
curious if any of that out-sized pricing has creeped into your markets?
Chuck Shaffer: No. We really haven’t
seen that yet.
Taylor Brodarick: I’m just talking
about loans, of course.
Chuck Shaffer: Oh, on loans?
Taylor Brodarick: Yes.
Chuck Cross: Florida, especially South
Florida, has always been a very competitive pricing market and it remains competitive today.
Dennis Hudson: Yes, and I say all the
time that there has never been a time in my career where we couldn’t complain about crazy competition in pricing and so forth.
When it gets too crazy, we exit the discussion, is all I can say. We really stay focused on relationships, but it’s a fight
every day. There has never been a day when we haven’t had those things, but you can’t use it as an excuse. You move
forward and talk to more customers, and ultimately you find customers that are interested in what we have to offer in terms of
our value, and we seem to be pretty successful.
Taylor Brodarick: I guess one last for
me, an update on what to expect. I think I had $1.5 million to $2 million of merger charges the next couple of quarters, does that
seem like it’s in the ball park?
Dennis Hudson: We are going to have
minor costs probably in the upcoming quarter. I would say that sounds, if anything, at or slightly high. As we look to Q3, of course,
we will have the charges related to the closing of Grand Bank, which would be higher than that. I think we had a number that we
disclosed in the announcement. For the total, I think it was $3.5 million. That’s spread over multiple quarters, but most
of it is in the third quarter.
Bill Hahl: …both Seacoast and
Grand Bank’s total merger costs.
Taylor Brodarick: Thank you everyone.
Operator: We have no further questions
at this time.
Dennis Hudson: Well, very good. Thank
you all for attending today and we look forward to updating you next quarter. Thank you.
Operator: Thank you, and thank you ladies
and gentlemen. This concludes today’s conference. Thank you for participating. You may now disconnect.
Exhibit 99.3
First Quarter 2015 April 29 th , 2015
2 Cautionary Notice Regarding Forward - Looking Statements This press release contains “forward - looking statements” within the meaning of Section 27 A of the Securities Act of 1933 and Section 21 E of the Securities Exchange Act of 1934 , including, without limitation, statements about future financial and operating results, ability to realized deferred tax assets, cost savings, enhanced revenues, economic and seasonal conditions in our markets, and improvements to reported earnings that may be realized from cost controls and for integration of banks that we have acquired, as well as statements with respect to Seacoast’s objectives, expectations and intentions and other statements that are not historical facts . Actual results may differ from those set forth in the forward - looking statements . Forward - looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance or achievements of Seacoast to be materially different from future results, performance or achievements expressed or implied by such forward - looking statements . You should not expect us to update any forward - looking statements . You can identify these forward - looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “support”, “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “further”, “point to,” “project,” “could,” “intend” or other similar words and expressions of the future . These forward - looking statements may not be realized due to a variety of factors, including, without limitation : the effects of future economic and market conditions, including seasonality ; 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 , 2014 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 . First Quarter 2015
First Quarter 2015 3 Financial Highlights Growth Highlights Q1 2015 Financial and Growth Highlights • Total loans increased $32.6 million or 7% (annualized) from Q4 14, and increased 41.3% from a year ago. Excluding the acquisition of BANKshares , loans increased $218.7 million or 15.9% from prior year levels. • Deposits increased $193.3 million or 8.0% from the prior quarter and 43.4% from a year earlier. Excluding the acquisition of BANKshares , deposits increased $273.7 million or 15.0% from prior year levels. • Acquired Grand Bankshares , Inc. (estimated to close in 3Q 15) adding approximately $208 million in assets, $184 million in deposits, and $127 million in gross loans to Seacoast's operations, along with 3 branch locations in Palm Beach County . • Net income grew 155% to $5.9 million, or $0.18 per diluted share, versus $2.3 million, or $0.09 per diluted share, in 1Q 14 and a net loss of $1.5 million, or ($0.05) per diluted share in Q4 14. • Adjusted net income (1) , for the Q1 2015 increased 47.8 % to $6.2 million or $ 0.19 per diluted share, compared to $4.2 million, or $0.13 per diluted share in 4Q14. • Net interest margin improved to 3.62% compared with 3.56% in preceding quarter due to loan growth, acquisition, and investment purchases . (1) Non - GAAP measure, excludes merger related charges, branch closure expenses, and other adjustments (See Appendix for reconciliation to GAA P)
First Quarter 2015 4 Earnings Trend Improve • The effective tax rate in the first quarter decreased to 37.7 % from 44.4% (higher from nondeductible merger related charges) for the 2014 calendar year. • Adjusted Pretax, pre - provision income (1) significantly improved indicative of higher quality earnings. (Dollars in thousands) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter 2015 2014 2014 2014 2014 GAAP Net Income $5,859 ($1,517) $2,996 $1,918 $ 2,299 GAAP Earnings per diluted share $ 0.18 ($0.05) $ 0.12 $ 0.07 $ 0.09 Adjusted Net Income (1) $6,177 $4,179 $3,286 $2,990 $2,533 Adjusted Pretax, pre - provision income (1) $10,342 $7,464 $4,341 $3,821 $3,395 Adjusted Earnings per diluted share (1) $0.19 $0.13 $0.13 $0.12 $0.10 Average shares outstanding 33,135 33,124 26,026 25,998 25,657 (1) Non - GAAP measure, excludes merger related charges, branch closure expenses, and other adjustments (See Appendix for reconciliation to GAA P)
First Quarter 2015 5 Loan Growth Momentum Continues • Total loans were $ 1.854 billion at March 31, 2015, up $32.6 million from December 31, 2014, or 1.8% (7% annualized) from the fourth quarter. • The commercial pipeline (in underwriting and approval or approved and not yet closed) totaled $82.1 million at March 31, 2015, the highest in the trailing four quarters and suggests continued strength. • T he residential pipeline totals $48.5 million at March 31, 2015 compared to $21.4 million at December 31, 2014 and $26.7 million one year ago. $675 $682 $701 $774 $780 $637 $653 $690 $1,048 $ 1,074 $1,312 $1,335 $1,391 $ 1,822 $ 1,854 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Total Loans ($ in Millions) Consumer Commercial
First Quarter 2015 6 Deposit Balances Extend Growth Trends • Average noninterest bearing demand deposits increased to 30.3% of total deposits compared with 26.9% for the first quarter 2014 • Average Low/No cost deposits increased to 87.2% of total deposits compared to 84.9% one year ago $481 $506 $506 $728 $754 $ 1,036 $ 1,041 $1,042 $ 1,307 $ 1,416 $270 $259 $252 $327 $318 $1,787 $1,806 $1,800 $2,362 $2,488 $0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 $2,250 $2,500 $2,750 $3,000 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Average Deposit Balances ($ in Millions) Non Interest Bearing Low Cost Deposits Time Deposits
First Quarter 2015 7 Funding Costs Remain Low 14 13 12 11 12 33 33 32 31 32 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Funding Costs (in BPS) Deposit Costs Interest Bearing
First Quarter 2015 8 • Net interest income for the quarter totaled $ 25.7 million, a $1 million or 15% annualized linked quarter . • Net interest margin for the quarter increased to 3.62% versus prior quarter of 3.56% in the fourth quarter 2014. • Improvement in net interest income and margin was the result of increased loan growth (a $54.5 million average balance increase), the reinvestment of excess cash balances, and additional accretion on purchased loans. $16,277 $16,779 $17,282 $24,883 $25,834 3.07% 3.10% 3.17% 3.56% 3.62% 0 5,000 10,000 15,000 20,000 25,000 30,000 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Net Interest Income and Net Interest Margin ($ in thousands) Net Interest Income Net Interest Margin Net Interest Income and Margin Meaningfully Improved
First Quarter 2015 9 Non Interest Income • Non interest income (excluding security gains) increased $167,000 from December 31, 2014. • Mortgage Banking fees increased $372,000 over the prior quarter and interchange income increased $134,000 over the prior quarter offset seasonally with fewer number of days for service charges on deposits and by marine finance fees. $1,507 $1,484 $1,753 $2,208 $2,002 $661 $855 $825 $716 $1,088 $1,050 $1,113 $1,225 $1,212 $1,242 $254 $340 $281 $445 $197 $1,403 $1,514 $1,452 $1,603 $1,737 $252 $330 $683 $590 $613 $705 $712 $5,558 $5,896 $6,149 $7,141 $7,308 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Non Interest Income ($ in Thousands) Service Charges on Deposits Mortgage Banking Fees Wealth Management Income Marine Finance Interchange Income BOLI Other
First Quarter 2015 10 Non Interest Expense Moderates $9,594 $9,668 $9,917 $12,459 $ 11,192 $1,695 $1,811 $1,769 $1,925 $2,184 $2,702 $2,798 $2,820 $ 3,427 $ 3,251 $813 $675 $717 $1,072 $975 $935 $924 $884 $1,741 $1,388 $386 $411 $387 $476 $589 $2,259 $2,513 $2,350 $ 3,309 $ 3,096 $18,384 $18,800 $18,844 $ 24,409 $ 22,675 $0 $3,000 $6,000 $9,000 $12,000 $15,000 $18,000 $21,000 $24,000 $27,000 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Core Operating Expenses (1) ($ in Thousands) Salaries and Benefits Data Processing Cost Occupancy / Telephone Marketing Legal and Professional FDIC Other • Core operating expense (non - GAAP) totaled $22.7 million for the first quarter of 2015 compared to $24.4 million in the fourth quarter of 2014. • The improvement in core operating expense and our adjusted efficiency ratio (67.4% in 1Q15 versus 74.8% in 4Q14) is reflective of a full quarter benefit from expense reduction initiatives completed in Q4 14. (1) Non - GAAP measure, excludes merger related charges, branch closure expenses, and other adjustments (See Appendix for reconciliation to GAA P)
SBCF Florida’s Economic Improvement • Employment increased 3.7% in 2014 with 285,00 net new jobs • Construction employment accounts for just 5.2% of jobs, down from 8.7% at the peak and 6.5% on average • Unemployment as of March is down to 5.7% from 6.5% a year ago. First Quarter 2015 11
12 Source: Wells Fargo Securities Florida Economic Outlook March 2015 . First Quarter 2015
13 Source: Wells Fargo Securities Florida Economic Outlook March 2015 . First Quarter 2015
14 Source: Wells Fargo Securities Florida Economic Outlook March 2015 . First Quarter 2015
15 Source: Wells Fargo Securities Florida Economic Outlook March 2015 . First Quarter 2015
First Quarter 2015 16 Appendix
First Quarter 2015 17 Explanation of Certain Unaudited Non - GAAP Financial M easures • This press release contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). The financial highlights provide reconciliations between GAAP net income and adjusted net income, GAAP income and adjusted pretax, preprovision income. 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. 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.
First Quarter 2015 18 Net Income - GAAP to Non - GAAP Reconciliation: Presented below is net income excluding adjustments for merger related charges, branch closure charges, and other non core expenses. The Company believes that these results of operations are a more meaningful depiction of the underlying fundamentals of its business and ove rall performance. (1) Non - GAAP measure, excludes merger related charges, branch closure expenses, and other adjustments (See Appendix for reconciliation to GAA P) (Dollars in thousands) First Quarter 2015 Fourth Quarter 2014 Third Quarter 2014 Second Quarter 2014 First Quarter 2014 Net income $5,859 ($1,517) $2,996 $1,918 $2,299 Severance 12 478 328 181 212 Merger related charges 275 2,722 399 1,234 6 Branch closure charges and costs related to expense initiatives 0 4,261 68 114 0 Marketing and brand refresh expense 0 697 0 0 0 Stock compensation expense and other incentive costs related to improved outlook 0 1,213 0 0 0 Security (gains) 0 (108) (344) 0 (17) Miscellaneous losses (gains) 0 119 (45) 144 0 Recovery of nonaccrual loan interest 0 0 (192) 0 0 Net loss on OREO and repossessed assets 81 9 156 92 53 Asset dispositions expense 143 103 139 118 128 Effective tax rate on adjustments (193) (3,798) (219) (811) (148) Adjusted Net Income (1) $6,177 $4,179 $3,286 $2,990 $2,533 Provision (recapture) for loan losses 433 118 (1,425) (1,444) (735) Income taxes 3,732 3,167 2,480 2,275 1,597 Adjusted pretax, pre-provision income (1) $10,342 $7,464 $4,341 $3,821 $3,395 Adjusted earnings per diluted share (1) $0.19 $0.13 $0.13 $0.12 $0.10 Average shares outstanding 33,135 33,124 26,026 25,998 25,657
First Quarter 2015 19 Non - Interest Expense - GAAP to Non - GAAP Reconciliation: Presented below is core operating expenses and other non core expenses. The Company believes that these results of operations are a more meaningful depiction of the underlying fundamentals of its business and overall performance. (1) Non - GAAP measure, excludes merger related charges, branch closure expenses, and other adjustments (See Appendix for reconciliation to GAA P) (Dollars in thousands) First Quarter 2015 Fourth Quarter 2014 Third Quarter 2014 Second Quarter 2014 First Quarter 2014 Noninterest Expense: Salaries and wages $8,777 $9,998 $7,868 $7,587 $7,412 Employee benefits 2,415 2,461 2,049 2,081 2,182 Outsourced data processing costs 2,184 1,925 1,769 1,811 1,695 Telephone / data lines 496 419 313 306 293 Occupancy expense 2,023 2,325 1,879 1,888 1,838 Furniture and equipment expense 732 683 628 604 571 Marketing expense 975 1,072 717 675 813 Legal and professional fees 1,388 1,741 884 924 935 FDIC assessments 589 476 387 411 386 Amortization of intangibles 315 446 195 196 196 Other 2,781 2,863 2,155 2,317 2,063 Total Core Operating Expense 22,675 24,409 18,844 18,800 18,384 Non-GAAP adjustments Severance 12 478 328 181 212 Merger related charges 275 2,722 399 1,234 6 Branch closure charges and costs related to expense initiatives 0 4,261 68 114 0 Marketing and brand refresh expense 0 697 0 0 0 Stock compensation expense and other incentive costs related to improved outlook 0 1,213 0 0 0 Miscellaneous losses (gains) 0 119 (45) 144 0 Net loss on OREO and repossessed assets 81 9 156 92 53 Asset dispositions expense 143 103 139 118 128 Total Adjusted Operating Expenses $23,186 $34,011 $19,889 $20,683 $18,789
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