Full-Year 2017 Net Income Increased 47%
to $42.9 Million
Seacoast Banking Corporation of Florida (“Seacoast” or “the
Company”) (NASDAQ:SBCF) today reported net income of $13.0 million,
or $0.28 per share for the fourth quarter of 2017, a 21% or $2.3
million increase from the fourth quarter of 2016. The Company
reported fourth quarter adjusted net income1 of $17.3 million, or
$0.37 per share, representing a 46% or $5.5 million increase from
the fourth quarter of 2016. Full-year 2017 net income was
$42.9 million, or $0.99 per share, a 47% or $13.7 million increase
compared to prior year results. Full-year 2017 adjusted net
income1 was $55.3 million, or $1.28 per share, a 42% or $16.3
million increase compared to prior year results.
For the fourth quarter 2017, return on average
tangible assets was 0.97%, return on average tangible shareholders’
equity was 10.7%, and the efficiency ratio was 64.0%, compared to
1.12%, 12.5% and 58.9%, respectively, in the prior quarter and
1.00%, 12.5%, and 62.4%, respectively, in the fourth quarter of
2016. Adjusted return on average tangible assets1 was 1.23%,
adjusted return on average tangible shareholders’ equity1 was
13.5%, and the adjusted efficiency ratio1 was 52.6%, compared to
1.16%, 12.8%, and 57.7%, respectively, in the prior quarter, and
1.05%, 13.1%, and 60.8%, respectively, in the fourth quarter of
2016.
Dennis S. Hudson, III, Seacoast’s Chairman and
CEO, said, “Seacoast’s 2017 performance demonstrated our ability to
consistently grow our banking franchise through both organic
initiatives and prudent acquisitions, while simultaneously
delivering record shareholder returns, highlighted by a 23%
year-over-year increase in adjusted earnings per share. As we
navigated the near-term impact of Hurricane Irma, we continued to
drive earnings expansion while retaining the quality of our loan
portfolio and investing to support our long-term growth
objectives.”
Hudson added, “We expect that the recently
passed Tax Cuts and Jobs Act of 2017 will further strengthen
economic fundamentals across Florida. Our expansion into South
Florida, Orlando and Tampa positions Seacoast to capture this
expected economic growth in the coming year as we provide a
compelling value proposition for consumers and business customers
living and operating in these markets.”
Hudson concluded, “The continued execution of
our balanced growth strategy, combined with the additional
financial resources provided by the tax cut, will enable Seacoast
to accelerate investments in our franchise, deliver incremental
value for all stakeholders, and further advance our momentum toward
our Vision 2020 objectives, which we introduced at our investor day
last year.”
Charles M. Shaffer, Seacoast’s Chief Financial
Officer, said, “We have been successful in allocating capital
throughout the year into accretive opportunities, offsetting the
initial dilution from our share issuance in February 2017. We have
increased our tangible book value per share from $9.37 per share at
the start of the year to $11.15 at year end, representing 19%
growth in tangible capital per share. We are exiting the year
with a ratio of tangible common equity to tangible assets of 9.4%
and a loan to deposit ratio of 83%, providing both capital and
low-cost funding for accretive growth in 2018. Our low cost of
funding and asset sensitive balance sheet position us well for
continued earnings growth in 2018.”
Update on Vision 2020 and the Tax Cuts and Jobs Act of
2017
We are confident in our ability to achieve our Vision 2020
targets announced at investor day in February of 2017. The
enactment of the Tax Cuts and Jobs Act of 2017 on December 22, 2017
should have a significant positive impact on the United States
economy and growth in our Florida markets. This clearly
creates an opportunity for us to accelerate the achievement of our
Vision 2020 objectives, through increased growth and appropriate
investments. As the impact of this new legislation on our
operating markets materializes, we will provide further updates on
our progress and updated objectives.
|
Vision 2020 Targets |
Return on Tangible Assets |
1.30%+ |
Return on Tangible Common Equity |
16%+ |
Efficiency Ratio |
Below 50% |
Notable Items Affecting Fourth Quarter 2017 Results;
These Items are Excluded from the Presentation of Adjusted
Results
- Additional income tax expense of $8.6 million was recorded to
write down the Company’s net deferred tax asset as a result of the
Tax Cuts and Jobs Act of 2017. This estimate is subject to
additional procedures which could result in further adjustments in
future periods.
- A $15.2 million gain on the sale of shares of Visa Class B
stock was recorded in the fourth quarter. These shares were
purchased in early 2017.
- Merger and acquisition related charges associated with the
purchase of Palm Beach Community Bank and NorthStar Banking
Corporation totaled $6.8 million. These charges primarily
represent change in control payments, legal and investment banking
fees, and technology contract termination fees associated with the
two acquisitions.
Update on Hurricane
Impacts
- The Company recorded a charge-off of $0.6 million related to a
customer with a Caribbean export business which was severely
impacted by the fall season hurricanes.
- Loan pipelines and production across all business lines were
disrupted by the storms, the result of business interruption over
multiple weeks in the fourth quarter.
Fourth Quarter 2017 Financial
Highlights
Income Statement
- Net income was $13.0 million, or $0.28 per
average common diluted share, compared to $14.2 million or $0.32
for the prior quarter and $10.8 million or $0.28 for the fourth
quarter of 2016. For the year ended December 31, 2017, net
income was $42.9 million, or $0.99 per average common diluted
share, compared to $29.2 million or $0.78 for the year ended
December 31, 2016. Adjusted net income1 was $17.3 million, or
$0.37 per average common diluted share, compared to $15.1 million
or $0.35 for the prior quarter and $11.8 million or $0.31 for the
fourth quarter of 2016. For the year ended December 31, 2017,
adjusted net income1 was $55.3 million, or $1.28 per average common
diluted share, compared to $39.1 million or $1.04 for the year
ended December 31, 2016.
- Net revenues were $74.9 million, an increase
of $17.7 million or 31% compared to the prior quarter, and an
increase of $27.5 million or 58% from the fourth quarter of
2016. For the year ended December 31, 2017, net revenues were
$234.8 million, an increase of $57.4 million or 32% compared to the
year ended December 31, 2016. Adjusted revenues1 were $59.6
million, an increase of $2.4 million, or 4%, from the prior quarter
and an increase of $12.3 million, or 26% from the fourth quarter of
2016. For the year ended December 31, 2017, adjusted
revenues1 were $219.5 million, an increase of $43.0 million or 24%
compared to the year ended December 31, 2016.
- Net interest income totaled $48.2 million, an
increase of $2.5 million or 5% from the prior quarter and an
increase of $10.8 million or 29% from the fourth quarter of
2016. For the year ended December 31, 2017, net interest
income totaled $176.3 million, an increase of $36.7 million or 26%
compared to the year ended December 31, 2016.
- Noninterest income totaled
$26.6 million, an increase of $15.2 million or 133% compared to the
prior quarter and an increase of $16.7 million or 168% from the
fourth quarter of 2016. For the year ended December 31, 2017,
noninterest income totaled $58.5 million, an increase of $20.7
million or 55% compared to the year ended December 31, 2016.
Adjusted noninterest income1 totaled $11.4 million for the
quarter, in line with the prior quarter and an increase of $1.5
million or 15% from the fourth quarter of 2016. For the year
ended December 31, 2017, adjusted noninterest income1 totaled $43.2
million, an increase of $6.3 million or 17% compared to the year
ended December 31, 2016. During the quarter the Company sold
$28.4 million of residential mortgages originated in prior quarters
at a $477 thousand gross premium, recorded as mortgage banking fee
income. Brokerage commissions and fees were impacted by a
transition during the quarter to a new broker-dealer, and by the
effects of Hurricane Irma. Looking forward, we expect the
technology solution provided by the new broker-dealer to provide
further opportunities for growth. A focus on spend
stimulation in the quarter drove additional growth in debit
interchange income.
- Net interest margin was 3.71% in the current
quarter compared to 3.74% in the prior quarter and 3.56% in the
fourth quarter of 2016. For the year ended December 31, 2017,
the net interest margin was 3.73% compared to 3.63% for the year
ended December 31, 2016. The net interest margin was
affected this quarter when compared to the prior quarter by higher
rates on deposits and lower non-cash related loan
accretion.
- The provision for loan losses was $2.3 million
compared to $0.7 million in the prior quarter and $1.0 million in
the fourth quarter of 2016. The increase of $1.6 million in the
current quarter primarily reflects the effect of higher
charge-offs. As discussed in the hurricane update above, $0.6
million of the current quarter charge-offs related to a single
borrower whose business exporting to the Caribbean was
significantly impacted by the storms. For the year ended
December 31, 2017, the provision for loan losses was $5.6 million
compared to $2.4 million for the year ended December 31, 2016,
primarily the result of organic growth in the portfolio.
- Noninterest expense was $39.2 million compared
to $34.4 million in the prior quarter and $30.3 million in the
fourth quarter of 2016. For the year ended December 31, 2017,
noninterest expense was $150.0 million compared to $130.9 million
in 2016. Adjusted noninterest expense1 was $31.4 million
compared to $32.8 million in the prior quarter, and $28.9 million
in the fourth quarter of 2016. For the year ended
December 31, 2017, adjusted noninterest expense1 was $129.0 million
compared to $114.2 million in 2016.
- The current quarter’s noninterest expense includes an
adjustment of $2.0 million of performance related incentives, and
merger and acquisition related charges totaling $6.8 million.
The merger and acquisition related charges primarily represent
change in control payments, legal fees and investment banking, and
technology contract termination fees associated with the two
acquisitions.
- Seacoast recorded a $20.4 million income tax
provision in the current quarter, compared to $7.9 million
in the prior quarter and $5.3 million in the fourth quarter of
2016. For the year ended December 31, 2017, the income tax
provision was $36.3 million, compared to $14.9 million in
2016. This quarter’s tax provisioning included an $8.6
million charge for the write down of the company’s net deferred tax
asset associated with the Tax Cuts and Jobs Act of 2017.
- Fourth quarter 2017 adjusted revenues1
increased 4% compared to prior quarter, while adjusted noninterest
expense1 decreased 4%, providing 8% operating leverage. Full-year
2017 adjusted revenues1 increased 24% compared to prior year
results, while adjusted noninterest expense1 increased 13%,
providing 11% operating leverage.
- The efficiency ratio was 64.0% compared to
58.9% in the prior quarter and 62.4% in the fourth quarter of
2016. For the year ended December 31, 2017, the efficiency
ratio was 66.7% compared to 72.1% in 2016. The adjusted
efficiency ratio1 decreased to 52.6% compared to 57.7% in the prior
quarter and 60.8% in the fourth quarter of 2016. For the year
ended December 31, 2017 the adjusted efficiency ratio decreased to
57.0% compared to 64.6% in 2016.
Balance Sheet
- At December 31, 2017, the Company had total
assets of $5.8 billion and total shareholders' equity of
$689.7 million. Book value per share was $14.70 and tangible
book value per share was $11.15, compared to $13.66 and $10.95,
respectively, at September 30, 2017 and $11.45 and $9.37,
respectively, at December 31, 2016.
- Net loans totaled $3.8 billion at December 31,
2017, an increase of $432 million or 13% compared to September 30,
2017, and an increase of $934 million or 33% from December 31,
2016. Excluding acquisitions, loans increased $278 million or
10% from December 31, 2016.
- During the fourth quarter, commercial originations were $132
million, consumer and small business originations were $80 million,
and closed residential loans retained were $75.6 million.
- We continue to prudently manage CRE exposure. At 61% and 209%
of total risk-based capital respectively, construction and land
development and commercial real estate loan concentrations remain
well below regulatory guidance.
- Pipelines (loans in underwriting and approval
or approved and not yet closed) at year end continued to reflect
the lingering effects of the fall season hurricanes. At
December 31, 2017, pipelines were $119 million in commercial, $49
million in mortgage, and $39 million in consumer and small
business.
- Commercial pipelines decreased by $36 million, or 23%, from
prior quarter and have increased $30 million, or 34%, over year-ago
levels.
- Mortgage pipelines were lower by $15 million, or 24%, from
prior quarter and by $24 million, or 33%, compared to year-ago
levels.
- Consumer and small business decreased from prior quarter by $8
million, or 17%, and were lower than year-ago levels by $7 million,
or 16%.
- Total deposits were $4.6 billion as of
December 31, 2017, an increase of $480 million, or 12%, compared to
September 30, 2017 and an increase of $1.1 billion, or 30%, from
December 31, 2016.
- During 2017, interest bearing deposits (interest bearing
demand, savings and money markets deposits) increased $393 million,
or 19%, to $2.4 billion, noninterest bearing demand deposits
increased $252 million, or 22%, to $1.4 billion, and CDs increased
$424 million, or 121%, to $776 million.
- Excluding acquired deposits, noninterest bearing deposits
increased 7% and total deposits increased 4% compared to December
31, 2016.
- The Company’s balance sheet continues to be primarily core
deposit funded. Core customer funding was $4.0 billion at December
31, 2017, compared to $3.6 billion at September 30, 2017 and $3.4
billion at December 31, 2016.
- Organic deposits grew 2% compared to prior quarter, with
annualized quarterly growth of 10%.
- Overall cost of deposits in the fourth quarter was 0.29%,
reflecting the significant value of the deposit franchise.
- Fourth quarter return on average assets (ROA)
was 0.91%, compared to 1.06% in the prior quarter and 0.94% from
the fourth quarter of 2016. Return on average tangible assets
(ROTA) was 0.97%, compared to 1.12% in the prior quarter and 1.00%
in the fourth quarter of 2016. Adjusted ROTA1 was 1.23% compared to
1.16% in the prior quarter and 1.05% in the fourth quarter of
2016.
Capital
- The common equity tier 1 capital ratio (CET1)
was 12.0%, total capital ratio was 14.2% and the tier 1 leverage
ratio was 10.6% at December 31, 2017.
- Tangible common equity to tangible assets was
9.4% at December 31, 2017, compared to 9.1% at September 30, 2017,
and 7.7% at December 31, 2016.
Asset Quality
- Nonperforming loans to total
loans outstanding was 0.47% at December 31, 2017,
0.42% at September 30, 2017, and 0.63% at December 31, 2016.
- Nonperforming assets to total assets was 0.44%
at December 31, 2017, 0.40% at September 30, 2017 and 0.60% at
December 31, 2016. Of the $25.7 million in nonperforming
assets, $4 million related to five closed branch properties held as
REO.
- The ratio of allowance for loan losses
to total loans was 0.71% at December 31, 2017, 0.77% at
September 30, 2017, and 0.81% at December 31, 2016. The ratio
of allowance for loan losses to non-acquired loans was 0.90% at
December 31, 2017, 0.91% at September 30, 2017, and 0.96% at
December 31, 2016. The ratio of allowance for
loan losses to acquired loans was 0.08% at December 31, 2017, 0.07%
at September 30, 2017, and 0.03% at December 31, 2016.
FINANCIAL HIGHLIGHTS |
|
|
|
|
|
(Dollars
in thousands, except per share data) |
4Q17 |
3Q17 |
2Q17 |
1Q17 |
4Q16 |
|
|
|
|
|
|
Selected
Balance Sheet Data (at period end): |
|
|
|
|
|
Total
Assets |
$ |
5,810,129 |
|
$ |
5,340,299 |
|
$ |
5,281,295 |
|
$ |
4,769,775 |
|
$ |
4,680,932 |
Gross Loans |
|
3,817,377 |
|
|
3,384,991 |
|
|
3,330,075 |
|
|
2,973,759 |
|
|
2,879,536 |
Total
Deposits |
|
4,592,720 |
|
|
4,112,600 |
|
|
3,975,458 |
|
|
3,678,645 |
|
|
3,523,245 |
|
|
|
|
|
|
Performance
Measures: |
|
|
|
|
|
Net Income |
$ |
13,047 |
|
$ |
14,216 |
|
$ |
7,676 |
|
$ |
7,926 |
|
$ |
10,771 |
Net Interest
Margin |
|
3.71% |
|
|
3.74 % |
|
|
3.84 % |
|
|
3.63 % |
|
|
3.56 % |
Average Diluted
Shares Outstanding (000) |
|
46,673 |
|
|
43,792 |
|
|
43,556 |
|
|
39,499 |
|
|
38,252 |
Diluted Earnings
Per Share (EPS) |
$ |
0.28 |
|
$ |
0.32 |
|
$ |
0.18 |
|
$ |
0.20 |
|
$ |
0.28 |
Return on
(annualized): |
|
|
|
|
|
Average Assets
(ROA) |
|
0.91% |
|
|
1.06% |
|
|
0.61% |
|
|
0.68% |
|
|
0.94% |
Average Tangible
Common Equity (ROTCE) |
|
10.7 |
|
|
12.5 |
|
|
7.3 |
|
|
8.8 |
|
|
12.5 |
Efficiency Ratio |
|
64.0 |
|
|
58.9 |
|
|
73.9 |
|
|
71.1 |
|
|
62.4 |
|
|
|
|
|
|
Adjusted
Operating Measures 1: |
|
|
|
|
|
Adjusted Net
Income |
$ |
17,261 |
|
$ |
15,145 |
|
$ |
12,665 |
|
$ |
10,270 |
|
$ |
11,803 |
Adjusted Diluted
EPS |
|
0.37 |
|
|
0.35 |
|
|
0.29 |
|
|
0.26 |
|
|
0.31 |
Adjusted
ROTA |
|
1.23% |
|
|
1.16% |
|
|
1.02% |
|
|
0.90% |
|
|
1.05% |
Adjusted
ROTCE |
|
13.5 |
|
|
12.8 |
|
|
11.2 |
|
|
10.7 |
|
|
13.1 |
Adjusted
Efficiency Ratio |
|
52.6 |
|
|
57.7 |
|
|
61.2 |
|
|
64.7 |
|
|
60.8 |
Adjusted
Noninterest Expenses as a Percentage of
Average Tangible Assets |
|
2.24 |
|
|
2.50 |
|
|
2.73 |
|
|
2.71 |
|
|
2.56 |
|
|
|
|
|
|
Other
Data |
|
|
|
|
|
Market Capitalization2 |
$ |
1,182,796 |
|
$ |
1,039,506 |
|
$ |
1,047,361 |
|
$ |
976,368 |
|
$ |
838,762 |
Full Time
Equivalent Employees |
|
805 |
|
|
762 |
|
|
759 |
|
|
743 |
|
|
725 |
Number of
ATMs |
|
85 |
|
|
74 |
|
|
76 |
|
|
76 |
|
|
77 |
Full service
banking offices |
|
51 |
|
|
45 |
|
|
45 |
|
|
46 |
|
|
47 |
Registered
online users |
|
83,881 |
|
|
78,880 |
|
|
75,394 |
|
|
71,385 |
|
|
67,243 |
Registered
mobile devices |
|
62,516 |
|
|
58,032 |
|
|
55,013 |
|
|
50,729 |
|
|
47,131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Non-GAAP measure, see “Explanation of Certain Unaudited
Non-GAAP Financial Measures”Effective in the first quarter of 2017,
adjusted net income and adjusted noninterest expense exclude the
effect of amortization of acquisition-related intangibles.
Prior periods have been revised to conform with the current period
presentation.2 Common shares outstanding multiplied by closing bid
price on last day of each period.
Fourth Quarter and 2017 Strategic
Highlights
Vision 2020, which we rolled out in the first
quarter of last year, connects innovation and investments over the
coming years to desired changes in our operating model, and to
enhanced digital customer experience and shareholder
returns.
Our operational execution during 2017 has
enabled us to remain on track to achieve our Vision 2020
objectives. In 2018, we’ll invest a portion of the tax savings
associated with the Tax Cuts and Jobs Act of 2017 to accelerate the
achievement of these objectives.
Modernizing How We Sell
- This year we continued our efforts to deepen customer
relationships outside of our banking centers. The number of
deposit accounts opened through our website and 24/7 customer
support center grew by 12% year over year. Our Customer
support center also originated $32.7 million in consumer and small
business loans.
- Our Commercial Banking and Operations teams partnered to
increase efficiency across the loan origination process with a
focus on optimizing technology, improving cycle time, and enhancing
vendor partnerships. This effort will continue well into
2018.
Lowering Our Cost to Serve
- Customer adoption of more convenient digital channels continues
to grow. This summer, non-teller transactions surpassed teller
transactions and 41% of checks are now deposited outside of the
banking center network, compared to 37% in December of 2016.
We expect this shift in customer preference to continue, requiring
continued focus on building a digitally integrated business
model.
Driving Improvements in How Our Business
Operates
- This year we successfully renegotiated our agreement with a key
technology and digital services provider. The agreement expands
digital banking capabilities, improves service level agreements,
and increases our ability to scale.
- In November, we consolidated our customer support center in
Stuart, migrating all customer support operations to our Orlando
location. The modernized, expanded site supports our 24/7 customer
service model and our growth strategy.
Scaling and Evolving Our Culture
- In the first quarter of 2018, a Chief Technology Officer was
added to the executive team.
- We also on-boarded key talent in the areas of data analysis,
digital marketing, business-to-business marketing and compliance.
These important additions to the Seacoast team help position us for
future growth.
OTHER INFORMATION
Conference Call
InformationSeacoast will host a conference call on Friday,
January 26, 2018 at 10:00 a.m. (Eastern Time) to discuss the
earnings results. Investors may call in (toll-free) by
dialing (888) 517-2458 (passcode: 6006 509). Slides will be used
during the conference call and may be accessed at Seacoast's
website at SeacoastBanking.com by selecting "Presentations" under
the heading "Investor Services." A replay of the call will be
available for one month, beginning late afternoon of January 26,
2018 by dialing (888) 843-7419 and using passcode: 6006 509.
Alternatively, individuals may listen to the
live webcast of the presentation by visiting Seacoast's website at
SeacoastBanking.com. The link is located in the subsection
"Presentations" under the heading "Investor Services." Beginning
the afternoon of January 26, an archived version of the webcast can
be accessed from this same subsection of the website. The
archived webcast will be available for one year.
About Seacoast Banking Corporation of
Florida (NASDAQ:SBCF)Seacoast Banking Corporation of
Florida is one of the largest community banks headquartered in
Florida with approximately $5.8 billion in assets and $4.6 billion
in deposits as of December 31, 2017. The Company provides
integrated financial services including commercial and retail
banking, wealth management, and mortgage services to customers
through advanced banking solutions, 51 traditional branches of its
locally-branded wholly-owned subsidiary bank, Seacoast Bank, and
five commercial banking centers. Offices stretch from Ft.
Lauderdale, Boca Raton and West Palm Beach north through the
Daytona Beach area, into Orlando and Central Florida and the
adjacent Tampa market, and west to Okeechobee and surrounding
counties. More information about the Company is available at
SeacoastBanking.com.
Cautionary Notice Regarding
Forward-Looking Statements This press release contains
"forward-looking statements" within the meaning, and protections,
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, including, without limitation,
statements about future financial and operating results, cost
savings, enhanced revenues, economic and seasonal conditions in our
markets, and improvements to reported earnings that may be realized
from cost controls, tax law changes, and for integration of banks
that we have acquired, or expect to acquire, as well as statements
with respect to Seacoast's objectives, strategic plans, including
Vision 2020, expectations and intentions and other statements that
are not historical facts. Actual results may differ from
those set forth in the forward-looking statements.
Forward-looking statements include statements
with respect to our beliefs, plans, objectives, goals,
expectations, anticipations, 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, 2016, under "Special Cautionary Notice
Regarding Forward-looking Statements" and "Risk Factors", and
otherwise in our SEC reports and filings. Such reports are
available upon request from the Company, or from the Securities and
Exchange Commission, including through the SEC's Internet website
at http://www.sec.gov.
Charles M. ShafferExecutive Vice PresidentChief
Financial Officer(772) 221-7003Chuck.Shaffer@seacoastbank.com
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS |
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
SEACOAST BANKING CORPORATION OF
FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except per share data) |
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2017 |
|
|
2017 |
|
|
2017 |
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Summary of Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
13,047 |
|
$ |
14,216 |
|
$ |
7,676 |
|
$ |
7,926 |
|
$ |
10,771 |
|
$ |
42,865 |
|
$ |
29,202 |
|
Net
interest income (1) |
|
48,402 |
|
|
45,903 |
|
|
44,320 |
|
|
38,377 |
|
|
37,628 |
|
|
177,002 |
|
|
140,514 |
|
Net
interest margin (1), (2) |
|
3.71 |
% |
|
3.74 |
% |
|
3.84 |
% |
|
3.63 |
% |
|
3.56 |
% |
|
3.73 |
% |
|
3.63 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
on average assets-GAAP basis (2) |
|
0.91 |
% |
|
1.06 |
% |
|
0.61 |
% |
|
0.68 |
% |
|
0.94 |
% |
|
0.82 |
% |
|
0.69 |
% |
Return
on average tangible assets (2),(3) |
|
0.97 |
|
|
1.12 |
|
|
0.66 |
|
|
0.74 |
|
|
1.00 |
|
|
0.88 |
|
|
0.75 |
|
Adjusted
return on average tangible assets (2), (3), (5) |
|
1.23 |
|
|
1.16 |
|
|
1.02 |
|
|
0.90 |
|
|
1.05 |
|
|
1.09 |
|
|
0.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
on average shareholders' equity-GAAP basis (2) |
|
7.87 |
|
|
9.59 |
|
|
5.43 |
|
|
6.89 |
|
|
9.80 |
|
|
7.51 |
|
|
7.06 |
|
Return
on average tangible shareholders' equity-GAAP basis (2),(3) |
|
10.69 |
|
|
12.45 |
|
|
7.25 |
|
|
8.77 |
|
|
12.51 |
|
|
9.90 |
|
|
8.87 |
|
Adjusted
return on average tangible common equity (2), (3), (5) |
|
13.49 |
|
|
12.80 |
|
|
11.22 |
|
|
10.74 |
|
|
13.14 |
|
|
12.17 |
|
|
11.25 |
|
Efficiency ratio
(4) |
|
63.95 |
|
|
58.93 |
|
|
73.90 |
|
|
71.08 |
|
|
62.36 |
|
|
66.68 |
|
|
72.13 |
|
Adjusted efficiency
ratio (5) |
|
52.55 |
|
|
57.69 |
|
|
61.20 |
|
|
64.65 |
|
|
60.84 |
|
|
57.02 |
|
|
64.60 |
|
Noninterest income to total revenue |
|
35.49 |
|
|
20.06 |
|
|
19.16 |
|
|
20.61 |
|
|
20.96 |
|
|
24.88 |
|
|
21.14 |
|
Average
equity to average assets |
|
11.50 |
|
|
11.06 |
|
|
11.17 |
|
|
9.93 |
|
|
9.56 |
|
|
10.96 |
|
|
9.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income diluted-GAAP basis |
$ |
0.28 |
|
$ |
0.32 |
|
$ |
0.18 |
|
$ |
0.20 |
|
$ |
0.28 |
|
$ |
0.99 |
|
$ |
0.78 |
|
Net
income basic-GAAP basis |
|
0.29 |
|
|
0.33 |
|
|
0.18 |
|
|
0.20 |
|
|
0.29 |
|
|
1.01 |
|
|
0.79 |
|
Adjusted
earnings (5) |
|
0.37 |
|
|
0.35 |
|
|
0.29 |
|
|
0.26 |
|
|
0.31 |
|
|
1.28 |
|
|
1.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book
value per share common |
|
14.70 |
|
|
13.66 |
|
|
13.29 |
|
|
12.34 |
|
|
11.45 |
|
|
14.70 |
|
|
11.45 |
|
Tangible
book value per share |
|
11.15 |
|
|
10.95 |
|
|
10.55 |
|
|
10.41 |
|
|
9.37 |
|
|
11.15 |
|
|
9.37 |
|
Cash
dividends declared |
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
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 Company defines tangible assets as total assets
less intangible assets, and
tangible common equity as total shareholders' equity less
intangible assets. |
|
(4)
Defined as (noninterest expense less gains, losses, and expenses on
foreclosed properties) divided by net operating revenue
(net interest income on a fully taxable equivalent
basis plus noninterest income excluding securities
gains). |
(5)
Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP
Financial Measures." |
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME |
(Unaudited) |
|
|
|
|
|
|
|
SEACOAST BANKING CORPORATION OF FLORIDA AND
SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUARTER |
|
YTD |
|
|
2017 |
|
|
|
2016 |
|
|
December 31, |
|
December 31, |
(Dollars in thousands, except share and per share data) |
Fourth |
Third |
Second |
First |
|
Fourth |
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
on securities: |
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
9,153 |
|
$ |
8,823 |
|
$ |
8,379 |
$ |
8,087 |
|
|
$ |
6,880 |
|
|
$ |
34,442 |
|
|
$ |
26,133 |
|
Nontaxable |
|
231 |
|
|
189 |
|
|
206 |
|
287 |
|
|
|
287 |
|
|
|
913 |
|
|
|
1,036 |
|
Interest
and fees on loans |
|
43,322 |
|
|
40,403 |
|
|
38,209 |
|
31,891 |
|
|
|
32,007 |
|
|
|
153,825 |
|
|
|
119,217 |
|
Interest
on federal funds sold and other investments |
|
638 |
|
|
664 |
|
|
604 |
|
510 |
|
|
|
517 |
|
|
|
2,416 |
|
|
|
1,669 |
|
Total Interest Income |
|
53,344 |
|
|
50,079 |
|
|
47,398 |
|
40,775 |
|
|
|
39,691 |
|
|
|
191,596 |
|
|
|
148,055 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
on deposits |
|
1,246 |
|
|
930 |
|
|
854 |
|
624 |
|
|
|
622 |
|
|
|
3,654 |
|
|
|
2,593 |
|
Interest
on time certificates |
|
2,032 |
|
|
1,266 |
|
|
814 |
|
566 |
|
|
|
598 |
|
|
|
4,678 |
|
|
|
2,074 |
|
Interest
on borrowed money |
|
1,840 |
|
|
2,134 |
|
|
1,574 |
|
1,420 |
|
|
|
1,046 |
|
|
|
6,968 |
|
|
|
3,800 |
|
Total Interest
Expense |
|
5,118 |
|
|
4,330 |
|
|
3,242 |
|
2,610 |
|
|
|
2,266 |
|
|
|
15,300 |
|
|
|
8,467 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income |
|
48,226 |
|
|
45,749 |
|
|
44,156 |
|
38,165 |
|
|
|
37,425 |
|
|
|
176,296 |
|
|
|
139,588 |
|
Provision for loan losses |
|
2,263 |
|
|
680 |
|
|
1,401 |
|
1,304 |
|
|
|
1,000 |
|
|
|
5,648 |
|
|
|
2,411 |
|
Net Interest Income After Provision
for Loan Losses |
|
45,963 |
|
|
45,069 |
|
|
42,755 |
|
36,861 |
|
|
|
36,425 |
|
|
|
170,648 |
|
|
|
137,177 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
2,566 |
|
|
2,626 |
|
|
2,435 |
|
2,422 |
|
|
|
2,612 |
|
|
|
10,049 |
|
|
|
9,669 |
|
Trust fees |
|
941 |
|
|
967 |
|
|
917 |
|
880 |
|
|
|
969 |
|
|
|
3,705 |
|
|
|
3,433 |
|
Mortgage banking fees |
|
1,487 |
|
|
2,138 |
|
|
1,272 |
|
1,552 |
|
|
|
1,616 |
|
|
|
6,449 |
|
|
|
5,864 |
|
Brokerage commissions and fees |
|
273 |
|
|
351 |
|
|
351 |
|
377 |
|
|
|
480 |
|
|
|
1,352 |
|
|
|
2,044 |
|
Marine finance fees |
|
313 |
|
|
137 |
|
|
326 |
|
134 |
|
|
|
115 |
|
|
|
910 |
|
|
|
673 |
|
Interchange income |
|
2,836 |
|
|
2,582 |
|
|
2,671 |
|
2,494 |
|
|
|
2,334 |
|
|
|
10,583 |
|
|
|
9,227 |
|
Other deposit based EFT fees |
|
111 |
|
|
100 |
|
|
114 |
|
140 |
|
|
|
125 |
|
|
|
465 |
|
|
|
477 |
|
BOLI income |
|
1,100 |
|
|
836 |
|
|
757 |
|
733 |
|
|
|
611 |
|
|
|
3,426 |
|
|
|
2,213 |
|
Other |
|
1,750 |
|
|
1,744 |
|
|
1,624 |
|
1,173 |
|
|
|
1,060 |
|
|
|
6,291 |
|
|
|
3,827 |
|
|
|
11,377 |
|
|
11,481 |
|
|
10,467 |
|
9,905 |
|
|
|
9,922 |
|
|
|
43,230 |
|
|
|
37,427 |
|
Gain on sale of VISA stock |
|
15,153 |
|
|
0 |
|
|
0 |
|
0 |
|
|
|
0 |
|
|
|
15,153 |
|
|
|
0 |
|
Securities gains/(losses), net |
|
112 |
|
|
(47 |
) |
|
21 |
|
0 |
|
|
|
7 |
|
|
|
86 |
|
|
|
368 |
|
Total Noninterest
Income |
|
26,642 |
|
|
11,434 |
|
|
10,488 |
|
9,905 |
|
|
|
9,929 |
|
|
|
58,469 |
|
|
|
37,795 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
Salaries and wages |
|
16,321 |
|
|
15,627 |
|
|
18,375 |
|
15,369 |
|
|
|
12,476 |
|
|
|
65,692 |
|
|
|
54,096 |
|
Employee benefits |
|
2,812 |
|
|
2,917 |
|
|
2,935 |
|
3,068 |
|
|
|
2,475 |
|
|
|
11,732 |
|
|
|
9,903 |
|
Outsourced data processing costs |
|
4,160 |
|
|
3,231 |
|
|
3,456 |
|
3,269 |
|
|
|
3,076 |
|
|
|
14,116 |
|
|
|
13,516 |
|
Telephone / data lines |
|
538 |
|
|
573 |
|
|
648 |
|
532 |
|
|
|
502 |
|
|
|
2,291 |
|
|
|
2,108 |
|
Occupancy |
|
3,265 |
|
|
2,447 |
|
|
4,421 |
|
3,157 |
|
|
|
2,830 |
|
|
|
13,290 |
|
|
|
13,122 |
|
Furniture and equipment |
|
1,806 |
|
|
1,191 |
|
|
1,679 |
|
1,391 |
|
|
|
1,211 |
|
|
|
6,067 |
|
|
|
4,720 |
|
Marketing |
|
1,490 |
|
|
1,298 |
|
|
1,074 |
|
922 |
|
|
|
847 |
|
|
|
4,784 |
|
|
|
3,633 |
|
Legal and professional fees |
|
3,054 |
|
|
2,560 |
|
|
3,276 |
|
2,132 |
|
|
|
2,370 |
|
|
|
11,022 |
|
|
|
9,596 |
|
FDIC assessments |
|
558 |
|
|
548 |
|
|
650 |
|
570 |
|
|
|
661 |
|
|
|
2,326 |
|
|
|
2,365 |
|
Amortization of intangibles |
|
964 |
|
|
839 |
|
|
839 |
|
719 |
|
|
|
719 |
|
|
|
3,361 |
|
|
|
2,486 |
|
Asset dispositions expense |
|
105 |
|
|
117 |
|
|
136 |
|
53 |
|
|
|
84 |
|
|
|
411 |
|
|
|
553 |
|
Net loss/(gain) on other real estate owned and repossessed
assets |
|
(112 |
) |
|
(414 |
) |
|
161 |
|
(346 |
) |
|
|
(161 |
) |
|
|
(711 |
) |
|
|
(509 |
) |
Early redemption cost for Federal Home Loan Bank advances |
|
0 |
|
|
0 |
|
|
0 |
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
1,777 |
|
Other |
|
4,223 |
|
|
3,427 |
|
|
3,975 |
|
3,910 |
|
|
|
3,207 |
|
|
|
15,535 |
|
|
|
13,515 |
|
Total Noninterest
Expenses |
|
39,184 |
|
|
34,361 |
|
|
41,625 |
|
34,746 |
|
|
|
30,297 |
|
|
|
149,916 |
|
|
|
130,881 |
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes |
|
33,421 |
|
|
22,142 |
|
|
11,618 |
|
12,020 |
|
|
|
16,057 |
|
|
|
79,201 |
|
|
|
44,091 |
|
Income
taxes |
|
20,374 |
|
|
7,926 |
|
|
3,942 |
|
4,094 |
|
|
|
5,286 |
|
|
|
36,336 |
|
|
|
14,889 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
13,047 |
|
$ |
14,216 |
|
$ |
7,676 |
$ |
7,926 |
|
|
$ |
10,771 |
|
|
$ |
42,865 |
|
|
$ |
29,202 |
|
|
|
|
|
|
|
|
|
|
|
|
Per
share of common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income diluted |
$ |
0.28 |
|
$ |
0.32 |
|
$ |
0.18 |
$ |
0.20 |
|
|
$ |
0.28 |
|
|
$ |
0.99 |
|
|
$ |
0.78 |
|
Net income basic |
|
0.29 |
|
|
0.33 |
|
|
0.18 |
|
0.20 |
|
|
|
0.29 |
|
|
|
1.01 |
|
|
|
0.79 |
|
Cash dividends declared |
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
Average
diluted shares outstanding |
|
46,672,538 |
|
|
43,792,108 |
|
|
43,556,285 |
|
39,498,835 |
|
|
|
38,252,351 |
|
|
|
43,350,314 |
|
|
|
37,508,046 |
|
Average
basic shares outstanding |
|
45,541,099 |
|
|
43,151,248 |
|
|
42,841,152 |
|
38,839,284 |
|
|
|
37,603,789 |
|
|
|
42,613,086 |
|
|
|
36,872,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(Unaudited) |
|
|
|
SEACOAST BANKING CORPORATION OF
FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
(Dollars in thousands, except share data) |
|
2017 |
|
|
2017 |
|
|
2017 |
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
Cash and due from banks |
$ |
104,039 |
|
$ |
114,621 |
|
|
88,133 |
|
$ |
133,923 |
|
$ |
82,520 |
|
Interest bearing deposits with other banks |
|
5,465 |
|
|
10,657 |
|
|
20,064 |
|
|
10,914 |
|
|
27,124 |
|
Total Cash and Cash
Equivalents |
|
109,504 |
|
|
125,278 |
|
|
108,197 |
|
|
144,837 |
|
|
109,644 |
|
|
|
|
|
|
|
Time deposits with other banks |
|
12,553 |
|
|
14,591 |
|
|
16,426 |
|
|
0 |
|
|
0 |
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
Available for sale (at fair value) |
|
955,804 |
|
|
996,799 |
|
|
1,016,744 |
|
|
909,275 |
|
|
950,503 |
|
Held to maturity (at amortized cost) |
|
416,863 |
|
|
374,773 |
|
|
397,096 |
|
|
379,657 |
|
|
372,498 |
|
Total
Securities |
|
1,372,667 |
|
|
1,371,572 |
|
|
1,413,840 |
|
|
1,288,932 |
|
|
1,323,001 |
|
|
|
|
|
|
|
Loans held for
sale |
|
24,306 |
|
|
29,447 |
|
|
22,262 |
|
|
16,326 |
|
|
15,332 |
|
|
|
|
|
|
|
Loans |
|
3,817,377 |
|
|
3,384,991 |
|
|
3,330,075 |
|
|
2,973,759 |
|
|
2,879,536 |
|
Less: Allowance for loan losses |
|
(27,122 |
) |
|
(26,232 |
) |
|
(26,000 |
) |
|
(24,562 |
) |
|
(23,400 |
) |
Net Loans |
|
3,790,255 |
|
|
3,358,759 |
|
|
3,304,075 |
|
|
2,949,197 |
|
|
2,856,136 |
|
|
|
|
|
|
|
Bank premises and equipment, net |
|
66,883 |
|
|
57,092 |
|
|
56,765 |
|
|
58,611 |
|
|
58,684 |
|
Other real estate owned |
|
7,640 |
|
|
7,142 |
|
|
8,497 |
|
|
7,885 |
|
|
9,949 |
|
Goodwill |
|
147,578 |
|
|
101,747 |
|
|
101,739 |
|
|
64,649 |
|
|
64,649 |
|
Other intangible assets, net |
|
19,099 |
|
|
16,102 |
|
|
16,941 |
|
|
13,853 |
|
|
14,572 |
|
Bank owned life insurance |
|
123,981 |
|
|
118,762 |
|
|
88,003 |
|
|
85,237 |
|
|
84,580 |
|
Net deferred tax assets |
|
25,417 |
|
|
43,951 |
|
|
52,195 |
|
|
55,834 |
|
|
60,818 |
|
Other assets |
|
110,246 |
|
|
95,856 |
|
|
92,355 |
|
|
84,414 |
|
|
83,567 |
|
Total Assets |
$ |
5,810,129 |
|
$ |
5,340,299 |
|
$ |
5,281,295 |
|
$ |
4,769,775 |
|
$ |
4,680,932 |
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
Liabilities |
|
|
|
|
|
Deposits |
|
|
|
|
|
Noninterest demand |
$ |
1,400,227 |
|
$ |
1,284,118 |
|
$ |
1,308,458 |
|
$ |
1,225,124 |
|
$ |
1,148,309 |
|
Interest-bearing demand |
|
1,050,755 |
|
|
935,097 |
|
|
934,861 |
|
|
870,457 |
|
|
873,727 |
|
Savings |
|
434,346 |
|
|
379,499 |
|
|
376,825 |
|
|
363,140 |
|
|
346,662 |
|
Money market |
|
931,458 |
|
|
870,788 |
|
|
861,119 |
|
|
821,606 |
|
|
802,697 |
|
Other time certificates |
|
202,430 |
|
|
155,027 |
|
|
155,265 |
|
|
153,840 |
|
|
159,887 |
|
Brokered time certificates |
|
217,385 |
|
|
281,551 |
|
|
149,270 |
|
|
66,741 |
|
|
7,342 |
|
Time certificates of $100,000 or more |
|
356,119 |
|
|
206,520 |
|
|
189,660 |
|
|
177,737 |
|
|
184,621 |
|
Total Deposits |
|
4,592,720 |
|
|
4,112,600 |
|
|
3,975,458 |
|
|
3,678,645 |
|
|
3,523,245 |
|
|
|
|
|
|
|
Securities sold under agreements to repurchase |
|
216,094 |
|
|
142,153 |
|
|
167,558 |
|
|
183,107 |
|
|
204,202 |
|
Federal Home Loan Bank borrowings |
|
211,000 |
|
|
389,000 |
|
|
395,000 |
|
|
302,000 |
|
|
415,000 |
|
Subordinated debt |
|
70,521 |
|
|
70,451 |
|
|
70,381 |
|
|
70,311 |
|
|
70,241 |
|
Other liabilities |
|
30,130 |
|
|
31,654 |
|
|
95,521 |
|
|
33,218 |
|
|
32,847 |
|
Total Liabilities |
|
5,120,465 |
|
|
4,745,858 |
|
|
4,703,918 |
|
|
4,267,281 |
|
|
4,245,535 |
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
Common stock |
|
4,693 |
|
|
4,351 |
|
|
4,339 |
|
|
4,075 |
|
|
3,802 |
|
Additional paid in capital |
|
661,632 |
|
|
576,825 |
|
|
574,842 |
|
|
510,806 |
|
|
454,001 |
|
Accumulated earnings/(deficit) |
|
29,208 |
|
|
16,161 |
|
|
1,945 |
|
|
(5,731 |
) |
|
(13,657 |
) |
Treasury stock |
|
(2,359 |
) |
|
(1,730 |
) |
|
(1,768 |
) |
|
(1,172 |
) |
|
(1,236 |
) |
|
|
693,174 |
|
|
595,607 |
|
|
579,358 |
|
|
507,978 |
|
|
442,910 |
|
Accumulated other comprehensive income/(loss), net |
|
(3,510 |
) |
|
(1,166 |
) |
|
(1,981 |
) |
|
(5,484 |
) |
|
(7,513 |
) |
Total Shareholders'
Equity |
|
689,664 |
|
|
594,441 |
|
|
577,377 |
|
|
502,494 |
|
|
435,397 |
|
Total Liabilities &
Shareholders' Equity |
$ |
5,810,129 |
|
$ |
5,340,299 |
|
$ |
5,281,295 |
|
$ |
4,769,775 |
|
$ |
4,680,932 |
|
|
|
|
|
|
|
Common Shares
Outstanding |
|
46,917,735 |
|
|
43,512,179 |
|
|
43,458,973 |
|
|
40,715,938 |
|
|
38,021,835 |
|
|
|
|
|
|
|
Note: The balance sheet at December 31, 2016 has been
derived from the audited financial statements at that
date. |
|
CONSOLIDATED QUARTERLY
FINANCIAL
DATA |
|
|
|
|
(Unaudited) |
|
|
|
|
|
SEACOAST BANKING CORPORATION OF FLORIDA AND
SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUARTERS |
|
|
2017 |
|
|
|
2016 |
|
|
(Dollars in thousands) |
Fourth |
|
Third |
|
Second |
|
First |
|
Fourth |
|
|
|
|
|
|
|
|
|
|
|
|
Credit Analysis |
|
|
|
|
|
|
|
|
|
|
Net charge-offs (recoveries) - non-acquired loans |
$ |
1,475 |
|
|
$ |
612 |
|
|
$ |
304 |
|
|
$ |
211 |
|
|
$ |
87 |
|
|
Net charge-offs (recoveries) - acquired loans |
|
(139 |
) |
|
|
(333 |
) |
|
|
(405 |
) |
|
|
(118 |
) |
|
|
141 |
|
|
Total net charge-offs (recoveries) |
$ |
1,336 |
|
|
$ |
279 |
|
|
$ |
(101 |
) |
|
$ |
93 |
|
|
$ |
228 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TDR valuation adjustments |
$ |
37 |
|
|
$ |
169 |
|
|
$ |
64 |
|
|
$ |
49 |
|
|
$ |
55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (recoveries) to average loans - non-acquired
loans |
|
0.16 |
|
% |
|
0.07 |
|
% |
|
0.04 |
|
% |
|
0.03 |
|
% |
|
0.01 |
|
% |
Net charge-offs (recoveries) to average loans - acquired loans |
|
(0.02 |
) |
|
|
(0.04 |
) |
|
|
(0.05 |
) |
|
|
(0.02 |
) |
|
|
0.02 |
|
|
Total net charge-offs (recoveries) to average loans |
|
0.14 |
|
|
|
0.03 |
|
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan loss provision (recapture) - non-acquired loans |
$ |
2,053 |
|
|
$ |
795 |
|
|
$ |
1,690 |
|
|
$ |
1,504 |
|
|
$ |
1,161 |
|
|
Loan loss provision (recapture) - acquired loans |
|
210 |
|
|
|
(115 |
) |
|
|
(289 |
) |
|
|
(200 |
) |
|
|
(161 |
) |
|
Total loan loss provision |
$ |
2,263 |
|
|
$ |
680 |
|
|
$ |
1,401 |
|
|
$ |
1,304 |
|
|
$ |
1,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses - non-acquired loans |
$ |
26,363 |
|
|
$ |
25,822 |
|
|
$ |
25,809 |
|
|
$ |
24,487 |
|
|
$ |
23,243 |
|
|
Allowance for loan losses - acquired loans |
|
759 |
|
|
|
410 |
|
|
|
191 |
|
|
|
75 |
|
|
|
157 |
|
|
Total allowance for loan losses |
$ |
27,122 |
|
|
$ |
26,232 |
|
|
$ |
26,000 |
|
|
$ |
24,562 |
|
|
$ |
23,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-acquired loans at end of period |
$ |
2,922,609 |
|
|
$ |
2,837,490 |
|
|
$ |
2,722,866 |
|
|
$ |
2,572,549 |
|
|
$ |
2,425,850 |
|
|
Purchased noncredit impaired loans at end of period |
|
877,351 |
|
|
|
537,057 |
|
|
|
594,077 |
|
|
|
388,228 |
|
|
|
440,690 |
|
|
Purchased credit impaired loans at end of period |
|
17,417 |
|
|
|
10,443 |
|
|
|
13,132 |
|
|
|
12,982 |
|
|
|
12,996 |
|
|
Total loans |
$ |
3,817,377 |
|
|
$ |
3,384,990 |
|
|
$ |
3,330,075 |
|
|
$ |
2,973,759 |
|
|
$ |
2,879,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-acquired loans allowance for loan losses to non-acquired loans
at end of period |
|
0.90 |
|
% |
|
0.91 |
|
% |
|
0.95 |
|
% |
|
0.95 |
|
% |
|
0.96 |
|
% |
Total allowance for loan losses to total loans at end of
period |
|
0.71 |
|
|
|
0.77 |
|
|
|
0.78 |
|
|
|
0.83 |
|
|
|
0.81 |
|
|
Acquired loans allowance for loan losses to acquired loans at end
of period |
|
0.08 |
|
|
|
0.07 |
|
|
|
0.03 |
|
|
|
0.02 |
|
|
|
0.03 |
|
|
Discount for credit losses to acquired loans at end of period |
|
2.33 |
|
|
|
2.77 |
|
|
|
3.37 |
|
|
|
4.25 |
|
|
|
4.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
End of Period |
|
|
|
|
|
|
|
|
|
|
Nonperforming loans - non-acquired loans |
$ |
11,088 |
|
|
$ |
10,877 |
|
|
$ |
10,541 |
|
|
$ |
10,557 |
|
|
$ |
11,023 |
|
|
Nonperforming loans - acquired loans |
|
6,955 |
|
|
|
3,498 |
|
|
|
6,632 |
|
|
|
6,428 |
|
|
|
7,048 |
|
|
Other real estate owned - non-acquired |
|
2,246 |
|
|
|
1,748 |
|
|
|
1,748 |
|
|
|
2,790 |
|
|
|
3,041 |
|
|
Other real estate owned - acquired |
|
1,632 |
|
|
|
1,632 |
|
|
|
1,645 |
|
|
|
1,203 |
|
|
|
1,203 |
|
|
Bank branches closed included in other real estate owned |
|
3,762 |
|
|
|
3,762 |
|
|
|
5,104 |
|
|
|
3,892 |
|
|
|
5,705 |
|
|
Total nonperforming assets |
$ |
25,683 |
|
|
$ |
21,517 |
|
|
$ |
25,670 |
|
|
$ |
24,870 |
|
|
$ |
28,020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructured loans (accruing) |
$ |
15,559 |
|
|
$ |
16,181 |
|
|
$ |
16,941 |
|
|
$ |
18,125 |
|
|
$ |
17,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to loans at end of period - non-acquired
loans |
|
0.38 |
|
% |
|
0.38 |
|
% |
|
0.39 |
|
% |
|
0.41 |
|
% |
|
0.45 |
|
% |
Nonperforming loans to loans at end of period - acquired loans |
|
0.78 |
|
|
|
0.64 |
|
|
|
1.09 |
|
|
|
1.60 |
|
|
|
1.55 |
|
|
Allowance for loan losses to nonperforming loans - non-acquired
loans |
|
237.76 |
|
|
|
237.40 |
|
|
|
244.84 |
|
|
|
231.95 |
|
|
|
210.86 |
|
|
Total nonperforming loans to loans at end of period |
|
0.47 |
|
|
|
0.42 |
|
|
|
0.52 |
|
|
|
0.57 |
|
|
|
0.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets - non-acquired |
|
0.29 |
|
% |
|
0.31 |
|
% |
|
0.33 |
|
% |
|
0.36 |
|
% |
|
0.42 |
|
% |
Nonperforming assets to total assets - acquired |
|
0.15 |
|
|
|
0.10 |
|
|
|
0.16 |
|
|
|
0.16 |
|
|
|
0.18 |
|
|
Total nonperforming assets to total assets |
|
0.44 |
|
|
|
0.40 |
|
|
|
0.49 |
|
|
|
0.52 |
|
|
|
0.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances |
|
|
|
|
|
|
|
|
|
|
Total average assets |
$ |
5,716,230 |
|
|
$ |
5,316,119 |
|
|
$ |
5,082,002 |
|
|
$ |
4,699,745 |
|
|
$ |
4,572,188 |
|
|
Less: Intangible assets |
|
149,432 |
|
|
|
118,364 |
|
|
|
114,563 |
|
|
|
78,878 |
|
|
|
79,620 |
|
|
Total average tangible assets |
$ |
5,566,798 |
|
|
$ |
5,197,755 |
|
|
$ |
4,967,439 |
|
|
$ |
4,620,867 |
|
|
$ |
4,492,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average equity |
$ |
657,100 |
|
|
$ |
587,919 |
|
|
$ |
567,448 |
|
|
$ |
466,847 |
|
|
$ |
437,077 |
|
|
Less: Intangible assets |
|
149,432 |
|
|
|
118,364 |
|
|
|
114,563 |
|
|
|
78,878 |
|
|
|
79,620 |
|
|
Total average tangible equity |
$ |
507,668 |
|
|
$ |
469,555 |
|
|
$ |
452,885 |
|
|
$ |
387,969 |
|
|
$ |
357,457 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
LOANS |
|
2017 |
|
|
|
2017 |
|
|
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land development |
$ |
343,195 |
|
|
$ |
245,151 |
|
|
$ |
230,574 |
|
|
$ |
174,992 |
|
|
$ |
160,116 |
|
|
Commercial real estate |
|
1,639,991 |
|
|
|
1,478,091 |
|
|
|
1,464,068 |
|
|
|
1,354,140 |
|
|
|
1,357,592 |
|
|
Residential real estate |
|
1,038,740 |
|
|
|
941,169 |
|
|
|
991,144 |
|
|
|
893,674 |
|
|
|
836,787 |
|
|
Installment loans to individuals |
|
188,712 |
|
|
|
184,485 |
|
|
|
178,595 |
|
|
|
165,039 |
|
|
|
153,945 |
|
|
Commercial and financial |
|
606,015 |
|
|
|
535,457 |
|
|
|
465,138 |
|
|
|
385,189 |
|
|
|
370,589 |
|
|
Other
loans |
|
724 |
|
|
|
637 |
|
|
|
556 |
|
|
|
725 |
|
|
|
507 |
|
|
Total Loans |
$ |
3,817,377 |
|
|
$ |
3,384,990 |
|
|
$ |
3,330,075 |
|
|
$ |
2,973,759 |
|
|
$ |
2,879,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED QUARTERLY
FINANCIAL
DATA |
|
|
|
|
(Unaudited) |
|
|
|
|
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(Dollars in thousands) |
|
2017 |
|
|
2017 |
|
|
2017 |
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
Customer Relationship
Funding |
|
|
|
|
|
|
|
|
|
Noninterest demand |
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
1,073,539 |
|
$ |
997,749 |
|
$ |
995,720 |
|
$ |
916,940 |
|
$ |
860,449 |
|
Retail |
|
253,454 |
|
|
217,809 |
|
|
238,506 |
|
|
234,109 |
|
|
220,134 |
|
Public funds |
|
50,837 |
|
|
43,686 |
|
|
47,691 |
|
|
52,126 |
|
|
48,690 |
|
Other |
|
22,397 |
|
|
24,874 |
|
|
26,541 |
|
|
21,949 |
|
|
19,036 |
|
|
|
1,400,227 |
|
|
1,284,118 |
|
|
1,308,458 |
|
|
1,225,124 |
|
|
1,148,309 |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
157,272 |
|
|
156,176 |
|
|
155,178 |
|
|
117,629 |
|
|
102,320 |
|
Retail |
|
702,616 |
|
|
670,705 |
|
|
659,906 |
|
|
613,121 |
|
|
591,808 |
|
Public funds |
|
190,867 |
|
|
108,216 |
|
|
119,777 |
|
|
139,707 |
|
|
179,599 |
|
|
|
1,050,755 |
|
|
935,097 |
|
|
934,861 |
|
|
870,457 |
|
|
873,727 |
|
|
|
|
|
|
|
|
|
|
|
Total transaction accounts |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
1,230,811 |
|
|
1,153,925 |
|
|
1,150,898 |
|
|
1,034,569 |
|
|
962,769 |
|
Retail |
|
956,070 |
|
|
888,514 |
|
|
898,412 |
|
|
847,230 |
|
|
811,942 |
|
Public funds |
|
241,704 |
|
|
151,902 |
|
|
167,468 |
|
|
191,833 |
|
|
228,289 |
|
Other |
|
22,397 |
|
|
24,874 |
|
|
26,541 |
|
|
21,949 |
|
|
19,036 |
|
|
|
2,450,982 |
|
|
2,219,215 |
|
|
2,243,319 |
|
|
2,095,581 |
|
|
2,022,036 |
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
434,346 |
|
|
379,499 |
|
|
376,825 |
|
|
363,140 |
|
|
346,662 |
|
|
|
|
|
|
|
|
|
|
|
Money market |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
375,471 |
|
|
360,567 |
|
|
351,871 |
|
|
313,094 |
|
|
286,879 |
|
Retail |
|
471,086 |
|
|
431,325 |
|
|
427,575 |
|
|
414,886 |
|
|
411,696 |
|
Public funds |
|
84,901 |
|
|
78,896 |
|
|
81,673 |
|
|
93,626 |
|
|
104,122 |
|
|
|
931,458 |
|
|
870,788 |
|
|
861,119 |
|
|
821,606 |
|
|
802,697 |
|
|
|
|
|
|
|
|
|
|
|
Time certificates of deposit |
|
775,934 |
|
|
643,098 |
|
|
494,195 |
|
|
398,318 |
|
|
351,850 |
Total Deposits |
$ |
4,592,720 |
|
$ |
4,112,600 |
|
$ |
3,975,458 |
|
$ |
3,678,645 |
|
$ |
3,523,245 |
|
|
|
|
|
|
|
|
|
|
|
Customer sweep accounts |
$ |
216,094 |
|
$ |
142,153 |
|
$ |
167,558 |
|
$ |
183,107 |
|
$ |
204,202 |
|
|
|
|
|
|
|
|
|
|
|
Total core customer funding (1) |
$ |
4,032,880 |
|
$ |
3,611,655 |
|
$ |
3,648,821 |
|
$ |
3,463,434 |
|
$ |
3,375,597 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total deposits and customer sweep accounts, excluding
certificates of deposits. |
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES, INTEREST INCOME AND
EXPENSES, YIELDS AND RATES (1) |
|
|
|
|
(Unaudited) |
|
|
|
|
|
SEACOAST BANKING CORPORATION OF FLORIDA AND
SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
|
|
2016 |
|
|
Fourth Quarter |
|
|
Third Quarter |
|
|
Fourth Quarter |
|
|
Average |
|
|
|
Yield/ |
|
|
Average |
|
|
|
Yield/ |
|
|
Average |
|
|
|
Yield/ |
|
(Dollars in thousands) |
Balance |
|
Interest |
|
Rate |
|
|
Balance |
|
Interest |
|
Rate |
|
|
Balance |
|
Interest |
|
Rate |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
1,369,921 |
|
|
$ |
9,153 |
|
2.67 |
% |
|
$ |
1,356,276 |
|
|
$ |
8,823 |
|
2.60 |
% |
|
$ |
1,251,015 |
|
|
$ |
6,880 |
|
2.20 |
% |
Nontaxable |
|
31,282 |
|
|
|
354 |
|
4.53 |
|
|
|
26,256 |
|
|
|
290 |
|
4.42 |
|
|
|
28,589 |
|
|
|
441 |
|
6.17 |
|
Total Securities |
|
1,401,203 |
|
|
|
9,507 |
|
2.71 |
|
|
|
1,382,532 |
|
|
|
9,113 |
|
2.64 |
|
|
|
1,279,604 |
|
|
|
7,321 |
|
2.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investments |
|
79,025 |
|
|
|
638 |
|
3.20 |
|
|
|
76,773 |
|
|
|
664 |
|
3.43 |
|
|
|
90,437 |
|
|
|
517 |
|
2.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net |
|
3,691,344 |
|
|
|
43,375 |
|
4.66 |
|
|
|
3,407,376 |
|
|
|
40,456 |
|
4.71 |
|
|
|
2,833,895 |
|
|
|
32,056 |
|
4.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Earning Assets |
|
5,171,572 |
|
|
|
53,520 |
|
4.11 |
|
|
|
4,866,681 |
|
|
|
50,233 |
|
4.10 |
|
|
|
4,203,936 |
|
|
|
39,894 |
|
3.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
(26,298 |
) |
|
|
|
|
|
|
|
(26,299 |
) |
|
|
|
|
|
|
|
(22,819 |
) |
|
|
|
|
|
Cash and
due from banks |
|
121,109 |
|
|
|
|
|
|
|
|
99,864 |
|
|
|
|
|
|
|
|
90,082 |
|
|
|
|
|
|
Premises
and equipment |
|
64,121 |
|
|
|
|
|
|
|
|
57,023 |
|
|
|
|
|
|
|
|
59,108 |
|
|
|
|
|
|
Intangible assets |
|
149,432 |
|
|
|
|
|
|
|
|
118,364 |
|
|
|
|
|
|
|
|
79,620 |
|
|
|
|
|
|
Bank
owned life insurance |
|
123,272 |
|
|
|
|
|
|
|
|
95,759 |
|
|
|
|
|
|
|
|
48,954 |
|
|
|
|
|
|
Other
assets |
|
113,022 |
|
|
|
|
|
|
|
|
104,727 |
|
|
|
|
|
|
|
|
113,307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
$ |
5,716,230 |
|
|
|
|
|
|
|
$ |
5,316,119 |
|
|
|
|
|
|
|
$ |
4,572,188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
$ |
976,295 |
|
|
$ |
367 |
|
0.15 |
% |
|
$ |
927,278 |
|
|
$ |
273 |
|
0.12 |
% |
|
$ |
812,056 |
|
|
$ |
149 |
|
0.07 |
% |
Savings |
|
431,124 |
|
|
|
94 |
|
0.09 |
|
|
|
377,729 |
|
|
|
52 |
|
0.05 |
|
|
|
343,753 |
|
|
|
44 |
|
0.05 |
|
Money market |
|
929,914 |
|
|
|
785 |
|
0.33 |
|
|
|
870,166 |
|
|
|
605 |
|
0.28 |
|
|
|
824,440 |
|
|
|
429 |
|
0.21 |
|
Time deposits |
|
761,720 |
|
|
|
2,032 |
|
1.06 |
|
|
|
548,092 |
|
|
|
1,266 |
|
0.92 |
|
|
|
360,712 |
|
|
|
598 |
|
0.66 |
|
Federal funds purchased and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
securities sold under agreements to repurchase |
|
166,006 |
|
|
|
231 |
|
0.55 |
|
|
|
165,160 |
|
|
|
204 |
|
0.49 |
|
|
|
184,612 |
|
|
|
110 |
|
0.24 |
|
Federal Home Loan Bank borrowings |
|
320,380 |
|
|
|
968 |
|
1.20 |
|
|
|
439,755 |
|
|
|
1,293 |
|
1.17 |
|
|
|
339,457 |
|
|
|
392 |
|
0.46 |
|
Other borrowings |
|
70,480 |
|
|
|
641 |
|
3.61 |
|
|
|
70,409 |
|
|
|
637 |
|
3.59 |
|
|
|
70,197 |
|
|
|
544 |
|
3.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Interest-Bearing
Liabilities |
|
3,655,919 |
|
|
|
5,118 |
|
0.56 |
|
|
|
3,398,589 |
|
|
|
4,330 |
|
0.51 |
|
|
|
2,935,227 |
|
|
|
2,266 |
|
0.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest demand |
|
1,373,403 |
|
|
|
|
|
|
|
|
1,276,779 |
|
|
|
|
|
|
|
|
1,167,687 |
|
|
|
|
|
|
Other
liabilities |
|
29,808 |
|
|
|
|
|
|
|
|
52,832 |
|
|
|
|
|
|
|
|
32,197 |
|
|
|
|
|
|
Total
Liabilities |
|
5,059,130 |
|
|
|
|
|
|
|
|
4,728,200 |
|
|
|
|
|
|
|
|
4,135,111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
657,100 |
|
|
|
|
|
|
|
|
587,919 |
|
|
|
|
|
|
|
|
437,077 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities &
Equity |
$ |
5,716,230 |
|
|
|
|
|
|
|
$ |
5,316,119 |
|
|
|
|
|
|
|
$ |
4,572,188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense as a % of earning assets |
|
|
|
|
0.39 |
% |
|
|
|
|
|
0.35 |
% |
|
|
|
|
|
0.21 |
% |
Net
interest income as a % of earning assets |
|
|
$ |
48,402 |
|
3.71 |
% |
|
|
|
$ |
45,903 |
|
3.74 |
% |
|
|
|
$ |
37,628 |
|
3.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) On a fully taxable equivalent basis. All yields and
rates have been computed on an annualized basis using amortized
cost. |
|
|
|
Fees on loans have been included in
interest on loans. Nonaccrual loans are included in loan
balances. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES, INTEREST INCOME AND EXPENSES,
YIELDS AND RATES (1) |
|
|
|
|
|
|
(Unaudited) |
|
|
|
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
Year to Date |
|
|
Year to Date |
|
|
Average |
|
|
|
Yield/ |
|
|
Average |
|
|
|
Yield/ |
|
(Dollars in thousands) |
Balance |
|
Interest |
|
Rate |
|
|
Balance |
|
Interest |
|
Rate |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
1,316,972 |
|
|
$ |
34,442 |
|
2.61 |
% |
|
$ |
1,174,627 |
|
|
$ |
26,133 |
|
2.22 |
% |
Nontaxable |
|
28,369 |
|
|
|
1,401 |
|
4.94 |
|
|
|
25,841 |
|
|
|
1,592 |
|
6.16 |
|
Total Securities |
|
1,345,341 |
|
|
|
35,843 |
|
2.66 |
|
|
|
1,200,468 |
|
|
|
27,725 |
|
2.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
investments |
|
71,352 |
|
|
|
2,416 |
|
3.39 |
|
|
|
75,442 |
|
|
|
1,669 |
|
2.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net |
|
3,323,403 |
|
|
|
154,043 |
|
4.64 |
|
|
|
2,584,389 |
|
|
|
119,587 |
|
4.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Earning Assets |
|
4,740,096 |
|
|
|
192,302 |
|
4.06 |
|
|
|
3,860,299 |
|
|
|
148,981 |
|
3.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
(25,485 |
) |
|
|
|
|
|
|
|
(21,131 |
) |
|
|
|
|
|
Cash and
due from banks |
|
106,710 |
|
|
|
|
|
|
|
|
88,919 |
|
|
|
|
|
|
Premises
and equipment |
|
59,842 |
|
|
|
|
|
|
|
|
60,470 |
|
|
|
|
|
|
Intangible assets |
|
115,511 |
|
|
|
|
|
|
|
|
66,611 |
|
|
|
|
|
|
Bank
owned life insurance |
|
97,939 |
|
|
|
|
|
|
|
|
45,009 |
|
|
|
|
|
|
Other
assets |
|
112,004 |
|
|
|
|
|
|
|
|
101,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
$ |
5,206,617 |
|
|
|
|
|
|
|
$ |
4,201,822 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
$ |
922,353 |
|
|
$ |
1,065 |
|
0.12 |
% |
|
$ |
764,917 |
|
|
$ |
616 |
|
0.08 |
% |
Savings |
|
385,515 |
|
|
|
241 |
|
0.06 |
|
|
|
325,371 |
|
|
|
161 |
|
0.05 |
|
Money market |
|
868,427 |
|
|
|
2,348 |
|
0.27 |
|
|
|
791,998 |
|
|
|
1,816 |
|
0.23 |
|
Time deposits |
|
523,646 |
|
|
|
4,678 |
|
0.89 |
|
|
|
351,646 |
|
|
|
2,074 |
|
0.59 |
|
Federal funds purchased and |
|
|
|
|
|
|
|
|
|
|
|
|
|
securities sold under agreements to repurchase |
|
171,686 |
|
|
|
782 |
|
0.46 |
|
|
|
187,560 |
|
|
|
484 |
|
0.26 |
|
Federal Home Loan Bank borrowings |
|
377,396 |
|
|
|
3,743 |
|
0.99 |
|
|
|
198,268 |
|
|
|
1,256 |
|
0.63 |
|
Other borrowings |
|
70,377 |
|
|
|
2,443 |
|
3.47 |
|
|
|
70,097 |
|
|
|
2,060 |
|
2.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Interest-Bearing
Liabilities |
|
3,319,400 |
|
|
|
15,300 |
|
0.46 |
|
|
|
2,689,857 |
|
|
|
8,467 |
|
0.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest demand |
|
1,279,825 |
|
|
|
|
|
|
|
|
1,066,463 |
|
|
|
|
|
|
Other
liabilities |
|
36,993 |
|
|
|
|
|
|
|
|
31,628 |
|
|
|
|
|
|
Total
Liabilities |
|
4,636,218 |
|
|
|
|
|
|
|
|
3,787,948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
570,399 |
|
|
|
|
|
|
|
|
413,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities &
Equity |
$ |
5,206,617 |
|
|
|
|
|
|
|
$ |
4,201,822 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense as a % of earning assets |
|
|
|
|
0.32 |
% |
|
|
|
|
|
0.22 |
% |
Net
interest income as a % of earning assets |
|
|
$ |
177,002 |
|
3.73 |
% |
|
|
|
$ |
140,514 |
|
3.63 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Explanation of Certain
Unaudited Non-GAAP Financial Measures |
This presentation
contains financial information determined by methods other than
Generally Accepted Accounting Principles (“GAAP”). Management uses
these non-GAAP financial measures in its analysis of the Company’s
performance and believes these presentations provide useful
supplemental information, and a clearer understanding of the
Company’s performance. The Company believes the non-GAAP measures
enhance investors’ understanding of the Company’s business and
performance and if not provided would be requested by the investor
community. These measures are also useful in understanding
performance trends and facilitate comparisons with the performance
of other financial institutions. The limitations associated with
operating measures are the risk that persons might disagree as to
the appropriateness of items comprising these measures and that
different companies might calculate these measures differently. The
Company provides reconciliations between GAAP and these non-GAAP
measures. These disclosures should not be considered an alternative
to GAAP. Effective in the first quarter of 2017, adjusted net
income and adjusted noninterest expense exclude the effect of
amortization of acquisition-related intangibles. Prior
periods have been revised to conform with the current period
presentation. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUARTER |
|
YTD |
|
(Dollars in thousands except per share data) |
Fourth |
|
Third |
|
Second |
|
First |
|
Fourth |
|
December 31, |
|
December 31, |
|
|
2017 |
|
|
2017 |
|
|
2017 |
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
$ |
13,047 |
|
$ |
14,216 |
|
$ |
7,676 |
|
$ |
7,926 |
|
$ |
10,771 |
|
$ |
42,865 |
|
$ |
29,202 |
|
Net
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOLI
income (benefits upon death) |
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
(464) |
|
Gain on
Sale of Visa Class B Shares |
|
(15,153) |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
(15,153) |
|
|
0 |
|
Security
(gains) / losses |
|
(112) |
|
|
47 |
|
|
(21) |
|
|
0 |
|
|
(7) |
|
|
(86) |
|
|
(368) |
|
Total Adjustments to
Revenue |
|
(15,265) |
|
|
47 |
|
|
(21) |
|
|
0 |
|
|
(7) |
|
|
(15,239) |
|
|
(832) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger
related charges |
|
6,817 |
|
|
491 |
|
|
5,081 |
|
|
533 |
|
|
561 |
|
|
12,922 |
|
|
9,028 |
|
Amortization of intangibles |
|
963 |
|
|
839 |
|
|
839 |
|
|
719 |
|
|
719 |
|
|
3,360 |
|
|
2,486 |
|
Business
continuity expenses - Hurricane Irma |
|
0 |
|
|
352 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
352 |
|
|
0 |
|
Branch
reductions and other expense initiatives |
|
0 |
|
|
(127) |
|
|
1,876 |
|
|
2,572 |
|
|
163 |
|
|
4,321 |
|
|
3,357 |
|
Early
redemption cost for FHLB advances |
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
1,777 |
|
Total Adjustments to Noninterest
Expense |
|
7,780 |
|
|
1,555 |
|
|
7,796 |
|
|
3,824 |
|
|
1,443 |
|
|
20,955 |
|
|
16,648 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate on adjustments |
|
3,147 |
|
|
(673) |
|
|
(2,786) |
|
|
(1,480) |
|
|
(404) |
|
|
(1,792) |
|
|
(5,949) |
|
Effect
of change in corporate tax rate |
|
8,552 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
8,552 |
|
|
0 |
|
Adjusted Net Income |
$ |
17,261 |
|
$ |
15,145 |
|
$ |
12,665 |
|
$ |
10,270 |
|
$ |
11,803 |
|
$ |
55,341 |
|
$ |
39,069 |
|
Earnings
per diluted share, as reported |
|
0.28 |
|
|
0.32 |
|
|
0.18 |
|
|
0.20 |
|
|
0.28 |
|
|
0.99 |
|
|
0.78 |
|
Adjusted Earnings per Diluted
Share |
|
0.37 |
|
|
0.35 |
|
|
0.29 |
|
|
0.26 |
|
|
0.31 |
|
|
1.28 |
|
|
1.04 |
|
Average
shares outstanding (000) |
|
46,673 |
|
|
43,792 |
|
|
43,556 |
|
|
39,499 |
|
|
38,252 |
|
|
43,350 |
|
|
37,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
74,868 |
|
$ |
57,183 |
|
$ |
54,644 |
|
$ |
48,070 |
|
$ |
47,354 |
|
$ |
234,765 |
|
$ |
177,383 |
|
Total
Adjustments to Revenue |
|
(15,265) |
|
|
47 |
|
|
(21) |
|
|
0 |
|
|
(7) |
|
|
(15,239) |
|
|
(832) |
|
Adjusted Revenue |
|
59,603 |
|
|
57,230 |
|
|
54,623 |
|
|
48,070 |
|
|
47,347 |
|
|
219,526 |
|
|
176,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expense |
|
39,184 |
|
|
34,361 |
|
|
41,625 |
|
|
34,746 |
|
|
30,297 |
|
|
149,916 |
|
|
130,881 |
|
Total
Adjustments to Noninterest Expense |
|
7,780 |
|
|
1,555 |
|
|
7,796 |
|
|
3,824 |
|
|
1,443 |
|
|
20,955 |
|
|
16,648 |
|
Adjusted Noninterest
Expense |
|
31,404 |
|
|
32,806 |
|
|
33,829 |
|
|
30,922 |
|
|
28,854 |
|
|
128,961 |
|
|
114,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Noninterest Expense |
|
31,404 |
|
|
32,806 |
|
|
33,829 |
|
|
30,922 |
|
|
28,854 |
|
|
128,961 |
|
|
114,233 |
|
Foreclosed property expense and net (gain)/loss on sale |
|
(7) |
|
|
(298) |
|
|
297 |
|
|
(293) |
|
|
(78) |
|
|
(301) |
|
|
43 |
|
Net
Adjusted Noninterest Expense |
|
31,411 |
|
|
33,104 |
|
|
33,532 |
|
|
31,215 |
|
|
28,932 |
|
|
129,262 |
|
|
114,190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Revenue |
|
59,603 |
|
|
57,230 |
|
|
54,623 |
|
|
48,070 |
|
|
47,347 |
|
|
219,526 |
|
|
176,551 |
|
Impact of FTE
adjustment |
|
174 |
|
|
154 |
|
|
164 |
|
|
211 |
|
|
204 |
|
|
703 |
|
|
204 |
|
Adjusted Revenue on a
fully taxable equivalent basis |
|
59,777 |
|
|
57,384 |
|
|
54,787 |
|
|
48,281 |
|
|
47,551 |
|
|
220,229 |
|
|
176,755 |
|
Adjusted Efficiency
Ratio |
|
52.6 |
% |
|
57.7 |
% |
|
61.2 |
% |
|
64.7 |
% |
|
60.8 |
% |
|
58.7 |
% |
|
64.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Assets |
$ |
5,716,230 |
|
$ |
5,316,119 |
|
$ |
5,082,002 |
|
$ |
4,699,745 |
|
$ |
4,572,188 |
|
$ |
5,206,617 |
|
$ |
4,201,819 |
|
Less average goodwill
and intangible assets |
|
(149,432) |
|
|
(118,364) |
|
|
(114,563) |
|
|
(78,878) |
|
|
(79,620) |
|
|
(115,511) |
|
|
(66,608) |
|
Average Tangible
Assets |
|
5,566,798 |
|
|
5,197,755 |
|
|
4,967,439 |
|
|
4,620,867 |
|
|
4,492,568 |
|
|
5,091,106 |
|
|
4,135,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average
Assets (ROA) |
|
0.91 |
% |
|
1.06 |
% |
|
0.61 |
% |
|
0.68 |
% |
|
0.94 |
% |
|
0.82 |
% |
|
0.69 |
% |
Impact of removing
average intangible assets and related amortization |
|
0.06 |
|
|
0.06 |
|
|
0.05 |
|
|
0.06 |
|
|
0.06 |
|
|
0.06 |
|
|
0.05 |
|
Return on Tangible Average Assets (ROTA) |
|
0.97 |
|
|
1.12 |
|
|
0.66 |
|
|
0.74 |
|
|
1.00 |
|
|
0.88 |
|
|
0.74 |
|
Impact of other
adjustments for Adjusted Net Income |
|
0.26 |
|
|
0.04 |
|
|
0.36 |
|
|
0.16 |
|
|
0.05 |
|
|
0.21 |
|
|
0.20 |
|
Adjusted Return on Average Tangible
Assets |
|
1.23 |
|
|
1.16 |
|
|
1.02 |
|
|
0.90 |
|
|
1.05 |
|
|
1.09 |
|
|
0.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Shareholders'
Equity |
$ |
657,100 |
|
$ |
587,919 |
|
$ |
567,448 |
|
$ |
466,847 |
|
$ |
437,077 |
|
$ |
570,399 |
|
$ |
406,084 |
|
Less average goodwill
and intangible assets |
|
(149,432) |
|
|
(118,364) |
|
|
(114,563) |
|
|
(78,878) |
|
|
(79,620) |
|
|
(115,511) |
|
|
(66,608) |
|
Average Tangible
Equity |
|
507,668 |
|
|
469,555 |
|
|
452,885 |
|
|
387,969 |
|
|
357,457 |
|
|
454,888 |
|
|
339,476 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average
Shareholders' Equity |
|
7.9 |
% |
|
9.6 |
% |
|
5.4 |
% |
|
6.9 |
% |
|
9.8 |
% |
|
7.5 |
% |
|
7.2 |
% |
Impact of removing
average intangible assets and related amortization |
|
2.8 |
|
|
2.9 |
|
|
1.9 |
|
|
1.9 |
|
|
2.7 |
|
|
2.4 |
|
|
1.9 |
|
Return on Average Tangible Common Equity (ROTCE) |
|
10.7 |
|
|
12.5 |
|
|
7.3 |
|
|
8.8 |
|
|
12.5 |
|
|
9.9 |
|
|
9.1 |
|
Impact of other
adjustments for Adjusted Net Income |
|
2.8 |
|
|
0.3 |
|
|
3.9 |
|
|
1.9 |
|
|
0.6 |
|
|
2.3 |
|
|
2.4 |
|
Adjusted Return on Average Tangible
Common Equity |
|
13.5 |
|
|
12.8 |
|
|
11.2 |
|
|
10.7 |
|
|
13.1 |
|
|
12.2 |
|
|
11.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Please visit Seacoast Bank’s website for a PDF version of this
press release and information on the 4th Quarter 2017 Earnings
Conference Call:
http://www.seacoastbanking.com/presentations.aspx?iid=100425
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