Seacoast Banking Corporation of Florida (“Seacoast” or the
"Company”) (NASDAQ: SBCF) today reported second quarter 2019 net
income of $23.3 million, or $0.45 per diluted share, up 37% or $6.3
million year-over-year. Seacoast reported second quarter 2019
adjusted net income1 of $25.8 million, or $0.50 per diluted share,
an increase of 41% or $7.6 million compared to the second quarter
of 2018.
For the second quarter of 2019, return on
average tangible assets was 1.50%, return on average tangible
shareholders’ equity was 14.3%, and the efficiency ratio was 53.5%,
compared to 1.48%, 14.9% and 56.6%, respectively, in the prior
quarter and 1.24%, 13.1%, and 58.4%, respectively, in the second
quarter of 2018. Adjusted return on average tangible assets1
was 1.59%, adjusted return on average tangible shareholders’
equity1 was 15.2%, and the adjusted efficiency ratio1 was 51.4%,
compared to 1.50%, 15.1%, and 55.8%, respectively, in the prior
quarter, and 1.28%, 13.5%, and 57.3%, respectively, in the second
quarter of 2018.
Dennis S. Hudson, III, Seacoast’s Chairman and
CEO, said, "During the quarter, we achieved record earnings,
resulting in a 41% year-over-year increase in adjusted net income1
and 17% year-over-year growth in tangible book value per share. We
continue to build a very high quality balance sheet, fortified with
a growing capital base, strong asset quality trends, and a
well-managed liquidity position."
Hudson added, "Highlights in the quarter
included continued expansion of our business banking team in Tampa
and South Florida, strong performance from our mortgage banking
group, and completion of our $10 million annual expense reduction
initiative, all resulting in an improvement in our adjusted
efficiency ratio1, declining 4% from the prior quarter to
51.4%."
Charles M. Shaffer, Seacoast’s Chief Operating
Officer and Chief Financial Officer, said, “Our second quarter 2019
results demonstrate that our focus on strong financial performance,
disciplined credit underwriting, and franchise expansion in robust
markets continues to create value for shareholders. During the
quarter, we continued to drive improved operating leverage while
delivering a strictly underwritten credit portfolio that is well
diversified in terms of asset mix and granularity. We have built a
balance sheet that is supported by an excellent customer franchise,
with an average loan to deposit ratio of 87.3%, providing ample
room for expansion of loans. We ended the quarter with a tangible
common equity ratio of 10.7% and healthy levels of liquidity, both
of which should support our ability to deploy capital for continued
organic growth and disciplined opportunistic acquisitions."
Second Quarter 2019 Financial
Highlights
Income Statement
- Net income was $23.3 million, or $0.45 per
diluted share, compared to $22.7 million, or $0.44, for the prior
quarter and $17.0 million, or $0.35, for the second quarter of
2018. For the six months ended June 30, 2019, net income was
$46.0 million, or $0.88 per diluted share, compared to $35.0
million, or $0.73, for the six months ended June 30, 2018.
Adjusted net income1 was $25.8 million, or $0.50 per diluted share,
compared to $24.2 million, or $0.47, for the prior quarter and
$18.3 million, or $0.38, for the second quarter of 2018. For the
six months ended June 30, 2019, adjusted net income1 was $50.0
million, or $0.96 per diluted share, compared to $37.6 million, or
$0.79, for the six months ended June 30, 2018.
- Net revenues were $73.7 million, an increase
of $0.1 million, compared to the prior quarter, and an increase of
$10.8 million, or 17%, compared to the second quarter of 2018. For
the six months ended June 30, 2019, net revenues were $147.3
million, an increase of $22.3 million, or 18%, compared to the six
months ended June 30, 2018. Adjusted revenues1 were $74.2
million, an increase of $0.6 million, or 1%, from the prior quarter
and an increase of $11.2 million, or 18%, from the second quarter
of 2018. For the six months ended June 30, 2019, adjusted
revenues1 were $147.8 million, an increase of $22.7 million, or
18%, compared to the six months ended June 30, 2018.
- Net interest income totaled $60.1 million, a
decrease of $0.6 million, or 1%, from the prior quarter and an
increase of $9.9 million, or 20%, from the second quarter of 2018.
For the six months ended June 30, 2019, net interest income
was $120.9 million, an increase of $20.9 million, or 21%, compared
to the six months ended June 30, 2018.
- Net interest margin was 3.94% in the second
quarter of 2019, 4.02% in the first quarter of 2019 and 3.77% in
the second quarter of 2018. Quarter-over-quarter, the yield on
loans contracted 6 basis points, the yield on securities contracted
2 basis points, and the cost of deposits increased 9 basis points.
The impact on net interest margin from accretion of purchase
discounts on acquired loans was 27 basis points in the second
quarter of 2019, compared to 26 basis points in the prior quarter
and 17 basis points in the second quarter of 2018. During the
quarter, the yield curve declined across all points on the curve,
affecting variable rate loans and securities, and reducing add-on
rates for new loans originated. Of note, late in the quarter,
deposit rate pressure began to abate.
- Noninterest income totaled $13.6 million, an
increase of $0.7 million, or 6%, compared to the prior quarter and
an increase of $0.9 million, or 7%, from the second quarter of
2018. For the six months ended June 30, 2019, noninterest
income was $26.4 million, an increase of $1.4 million, or 6%,
compared to the six months ended June 30, 2018. Sequentially,
noninterest income increased across nearly every category.
Highlights include an increase of $0.6 million in mortgage banking
fees, reflecting increasing success in generating saleable mortgage
volume, a $0.2 million increase in wealth-related fees attributed
to continued growth in assets under management, a $0.2 million
increase in service charges on deposits, in part the result of
increased revenue from treasury products, and a $0.2 million
increase in other income, primarily attributed to higher swap fees.
During the quarter, $38.2 million of securities were sold with an
average yield of 1.85%, resulting in a loss of $0.6 million. These
funds were reinvested at an average yield of 2.90%.
- The provision for loan losses was $2.6 million
compared to $1.4 million in the prior quarter and $2.5 million in
the second quarter of 2018.
- Noninterest expense was $41.0 million, a
decrease of $2.1 million, or 5%, compared to the prior quarter and
an increase of $2.8 million, or 7%, from the second quarter of
2018. For the six months ended June 30, 2019, noninterest
expense was $84.1 million, an increase of $8.7 million, or 12%,
compared to the six months ended June 30, 2018. Sequentially,
changes from the first quarter of 2019 in noninterest expense
consisted of the following:º Salaries and wages increased by $0.9
million, attributed to $1.1 million in severance costs associated
with the reduction of 50 full time equivalent employees as
previously announced. The full benefit of the reduction in force
should be realized in the third quarter.º Employee benefits
decreased $1.0 million attributed to the reduction in full time
equivalent employees, lower seasonal payroll taxes and 401(k) plan
contributions, and lower health insurance claims when compared to
the first quarter of 2019.º Legal and professional fees
decreased by $0.8 million primarily due to higher expenses incurred
in the first quarter of 2019 on projects in risk management and
lending operations, leading to the successful launch of our
commercial digital origination platform.º Our continued focus
on efficiency and streamlining operations resulted in decreases
across several categories, most notably a decrease of $0.8 million
in other expenses and $0.2 million in furniture and
equipment.º During the quarter, we closed one banking center
location, resulting in a $0.3 million one-time expense which is
included in occupancy expense. We will close an additional banking
center location in the third quarter.
- Seacoast recorded $6.9 million in income tax
expense in the second quarter of 2019, compared to $6.4
million in the prior quarter and $5.2 million in the second quarter
of 2018. Tax benefits related to stock-based compensation were $0.1
million in the second quarter compared to $0.6 million in the prior
quarter, during which a significant amount of previously granted
awards vested. The quarter-over-quarter change unfavorably impacted
earnings per share by one cent.
- Year to date adjusted revenues1 increased 18%
compared to prior year while adjusted noninterest
expense1 increased 10%, generating 8% operating
leverage.
- The efficiency ratio was 53.5% compared to
56.6% in the prior quarter and 58.4% in the second quarter of 2018.
The adjusted efficiency ratio1 was 51.4% compared to 55.8% in the
prior quarter and 57.3% in the second quarter of 2018. The
reduction in both ratios was the outcome of our continued focus on
streamlining operations, in combination with driving top-line
revenue improvements.
Balance Sheet
- At June 30, 2019, the Company had total
assets of $6.8 billion and total shareholders' equity of
$930.2 million. Book value per share was $18.08 and tangible
book value per share was $13.65, compared to $17.44 and $12.98,
respectively, at March 31, 2019 and $15.18 and $11.67,
respectively, at June 30, 2018. Year-over-year, tangible book
value per share increased 17%.
- Debt securities totaled $1.2 billion at
June 30, 2019, an increase of $28.9 million compared to the
prior quarter and a decrease of $135.1 million from June 30,
2018. During the quarter, $38.2 million of securities were sold,
with an average yield of 1.85%, resulting in a loss of $0.6
million. Purchases of securities during the quarter totaled $87.4
million at an average yield of 2.90%.
- Loans totaled $4.9 billion at June 30,
2019, an increase of $59.7 million, or 1.2%, compared to the prior
quarter, and an increase of $914.1 million, or 23%, from
June 30, 2018.
- New loan originations of $407 million, compared to $310 million
in the prior quarter, resulted in net loan growth in the quarter of
5% on an annualized basis, overcoming a $59 million increase in
early loan payoffs when compared to the prior quarter. During the
second quarter, we saw acceleration in commercial real estate loans
being refinanced away with minimal or no covenants, limited or no
guarantees, in combination with increasing leverage in projects.
Additionally, we allowed a few higher risk loans to be refinanced
away in categories such as marinas, hotels, and speculative
construction. We remain patient and committed to our strict
underwriting principles.
- Consumer and small business originations for the second quarter
of 2019 were a record $136.5 million, an increase of 15% compared
to the first quarter of 2019 and an increase of 30% compared to the
second quarter of 2018.
- Commercial originations during the second quarter of 2019 were
$157.0 million, an increase of 44% compared to the first quarter of
2019 and an increase of 12% compared to the second of quarter
2018.
- Closed residential loans retained in the portfolio for the
second quarter of 2019 were $51.8 million, up 4% from the first
quarter of 2019 and down 31% from the second quarter of 2018. The
decrease from prior year is consistent with the mortgage banking
team's shift towards generating saleable volume and away from
residential construction lending.
- We continue to manage the Company's exposure to commercial real
estate. Construction and land development and commercial real
estate loans remain well below regulatory guidance at 51% and 205%
of total bank-level risk based capital, respectively, down from 57%
and 216%, respectively, in the first quarter of 2019. On a
consolidated basis, inclusive of capital at the holding company,
construction and land development and commercial real estate loans
represent 48% and 192%, respectively, of total consolidated risk
based capital.
- Concentrations continue to be well managed with an average
commercial loan size of approximately $350,000. The top 10 and top
20 relationships represented 19% and 34%, respectively, of total
consolidated risk based capital, down from 25% and 42% compared to
second quarter of 2018 and down from 29% and 48% compared to second
quarter of 2016. Our largest committed exposure totals $29
million.
- Pipelines (loans in underwriting and approval
or approved and not yet closed) remained strong, totaling $377.6
million as of June 30, 2019.
- Consumer and small business pipelines were $65.5 million, a
decrease of 3% sequentially and an increase of 24% compared to the
prior year.
- Commercial pipelines were $261.6 million, an increase of 48%
sequentially and 34% compared to the prior year.
- Residential pipelines were $50.5 million, an increase of 11%
sequentially and a decrease of 21% compared to the prior year,
consistent with a shift in focus to generating saleable volume,
which at June 30, 2019 represents 90% of the residential
pipeline.
- Total deposits were $5.5 billion as of
June 30, 2019, a decrease of $64.4 million, or 1.1%,
sequentially and an increase of $843.8 million, or 18%, from the
prior year.
- Total deposits grew 3% on an annualized basis
quarter-over-quarter, excluding the impact of a $99 million
reduction in brokered time deposits. The decrease in brokered time
deposits was the result of a shift towards lower rate Federal Home
Loan Bank advances in the second quarter.
- During the second quarter, we accelerated the velocity of our
commercial customer acquisition, with business checking balances
growing 8% on an annualized basis overcoming seasonal pressure, the
result of expansion of our business banking franchise in the Tampa
and Fort Lauderdale markets.
- Interest-bearing deposits (interest-bearing demand, savings and
money market deposits) increased year-over-year $373.0 million, or
15%, to $2.8 billion, noninterest bearing demand deposits increased
$206.2 million, or 14%, to $1.7 billion, and CDs increased $264.6
million, or 34%, to $1.1 billion.
- Overall cost of deposits increased to 76 basis points. Of note,
late in the quarter, deposit rate pressure began to abate.
- Second quarter return on average tangible assets
(ROTA) was 1.50%, compared to 1.48% in the prior quarter
and 1.24% in the second quarter of 2018. Adjusted ROTA1 was 1.59%
compared to 1.50% in the prior quarter and 1.28% in the second
quarter of 2018.
Capital
- Second quarter return on average tangible common equity
(ROTCE) was 14.3%, compared to 14.9% in the prior quarter
and 13.1% in the second quarter of 2018. Adjusted ROTCE1 was 15.2%
compared to 15.1% in the prior quarter and 13.5% in the second
quarter of 2018.
- The tier 1 capital ratio was 14.6%,
total capital ratio was 15.2% and the tier
1 leverage ratio was 11.7% at June 30, 2019.
- Tangible common equity to tangible assets was
10.7% at June 30, 2019, compared to 10.2% at March 31, 2019
and 9.6% at June 30, 2018.
Asset Quality
- Nonperforming loans to total
loans outstanding was 0.47% at
June 30, 2019, 0.46% at March 31, 2019, and 0.66% at
June 30, 2018.
- Nonperforming assets to total assets was 0.50%
at June 30, 2019, 0.51% at March 31, 2019 and 0.58% at
June 30, 2018. Nonperforming assets decreased by $0.5 million
to $33.8 million in the second quarter of 2019.
- The ratio of allowance for loan losses
to total loans was 0.69% at June 30, 2019, 0.68% at
March 31, 2019, and 0.73% at June 30, 2018. The ratio of
allowance for loan losses to non-acquired loans was 0.87% at
June 30, 2019, 0.89% at March 31, 2019, and 0.88% at
June 30, 2018.
- Net charge-offs were $1.8 million or 0.15% of
average loans for the second quarter of 2019 compared to $1.0
million, or 0.08% of average loans in the prior quarter.
FINANCIAL
HIGHLIGHTS |
|
|
|
(Unaudited) |
|
|
|
(Amounts in
thousands except per share data) |
|
|
|
|
|
|
|
|
|
Quarterly Trends |
|
|
|
|
|
|
|
|
|
|
|
2Q'19 |
|
1Q'19 |
|
4Q'18 |
|
3Q'18 |
|
2Q'18 |
Selected Balance Sheet
Data: |
|
|
|
|
|
|
|
|
|
Total Assets |
$ |
6,824,886 |
|
|
$ |
6,783,389 |
|
|
$ |
6,747,659 |
|
|
$ |
5,930,934 |
|
|
$ |
5,922,681 |
|
Gross Loans |
4,888,139 |
|
|
4,828,441 |
|
|
4,825,214 |
|
|
4,059,323 |
|
|
3,974,016 |
|
Total Deposits |
5,541,209 |
|
|
5,605,578 |
|
|
5,177,240 |
|
|
4,643,510 |
|
|
4,697,440 |
|
|
|
|
|
|
|
|
|
|
|
Performance Measures: |
|
|
|
|
|
|
|
|
|
Net Income |
$ |
23,253 |
|
|
$ |
22,705 |
|
|
$ |
15,962 |
|
|
$ |
16,322 |
|
|
$ |
16,964 |
|
Net Interest Margin |
3.94 |
% |
|
4.02 |
% |
|
4.00 |
% |
|
3.82 |
% |
|
3.77 |
% |
Average Diluted Shares Outstanding |
51,952 |
|
|
52,039 |
|
|
51,237 |
|
|
48,029 |
|
|
47,974 |
|
Diluted Earnings Per Share (EPS) |
$ |
0.45 |
|
|
$ |
0.44 |
|
|
$ |
0.31 |
|
|
$ |
0.34 |
|
|
$ |
0.35 |
|
Return on (annualized): |
|
|
|
|
|
|
|
|
|
Average Assets (ROA) |
1.38 |
% |
|
1.36 |
% |
|
0.96 |
% |
|
1.10 |
% |
|
1.16 |
% |
Average Tangible Assets (ROTA) |
1.50 |
|
|
1.48 |
|
|
1.05 |
|
|
1.18 |
|
|
1.24 |
|
Average Tangible Common Equity (ROTCE) |
14.30 |
|
|
14.86 |
|
|
10.94 |
|
|
12.04 |
|
|
13.08 |
|
Efficiency Ratio |
53.48 |
|
|
56.55 |
|
|
65.76 |
|
|
57.04 |
|
|
58.41 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Measures1: |
|
|
|
|
|
|
|
|
|
Adjusted Net Income |
$ |
25,818 |
|
|
$ |
24,205 |
|
|
$ |
23,893 |
|
|
$ |
17,626 |
|
|
$ |
18,268 |
|
Adjusted Diluted EPS |
0.50 |
|
|
0.47 |
|
|
0.47 |
|
|
0.37 |
|
|
0.38 |
|
Adjusted ROTA |
1.59 |
% |
|
1.50 |
% |
|
1.49 |
% |
|
1.22 |
% |
|
1.28 |
% |
Adjusted ROTCE |
15.17 |
|
|
15.11 |
|
|
15.44 |
|
|
12.43 |
|
|
13.49 |
|
Adjusted Efficiency Ratio |
51.44 |
|
|
55.81 |
|
|
54.19 |
|
|
56.29 |
|
|
57.31 |
|
Adjusted Noninterest Expenses as a |
|
|
|
|
|
|
|
|
|
Percent of Average Tangible Assets |
2.34 |
|
|
2.55 |
|
|
2.46 |
|
|
2.48 |
|
|
2.57 |
|
|
|
|
|
|
|
|
|
|
|
Other Data: |
|
|
|
|
|
|
|
|
|
Market capitalization2 |
$ |
1,309,158 |
|
|
$ |
1,354,759 |
|
|
$ |
1,336,415 |
|
|
$ |
1,380,275 |
|
|
$ |
1,489,411 |
|
Full-time equivalent employees |
852 |
|
|
902 |
|
|
902 |
|
|
835 |
|
|
826 |
|
Number of ATMs |
81 |
|
|
84 |
|
|
87 |
|
|
86 |
|
|
87 |
|
Full service banking offices |
49 |
|
|
50 |
|
|
51 |
|
|
49 |
|
|
49 |
|
Registered online users |
104,017 |
|
|
102,274 |
|
|
99,415 |
|
|
94,400 |
|
|
92,107 |
|
Registered mobile devices |
92,281 |
|
|
87,844 |
|
|
83,151 |
|
|
73,300 |
|
|
69,038 |
|
1Non-GAAP
measure, see “Explanation of Certain Unaudited Non-GAAP Financial
Measures" for more information and a reconciliation to GAAP |
2Common shares
outstanding multiplied by closing bid price on last day of each
period |
Vision 2020
We remain confident in our ability to achieve
our Vision 2020 targets announced in 2017.
|
Vision 2020 Targets |
Return on Tangible Assets |
1.30% + |
Return on Tangible Common Equity |
16% + |
Efficiency Ratio |
Below 50% |
Second Quarter Operating Highlights
Modernizing How We Sell
- After a successful pilot program early this year, we launched
marketing efforts in the second quarter highlighting automated
fulfillment for small business loan products. While currently
limited to a select group of products, the platform offers
digitized onboarding and should significantly reduce the cost to
originate small business loans to current customers, while
maintaining our strict underwriting principles.
Lowering Our Cost to Serve
- We consolidated one banking center location in the second
quarter of 2019 with an eight month payback period and one-time
expense of $0.3 million. We have one remaining consolidation
planned for the third quarter of 2019.
- We’ve now achieved our Vision 2020 objective of reducing our
footprint by 20% to meet the evolving needs of our customers. We
were able to achieve this objective ahead of plan due to successful
M&A and the repositioning of our banking center network in
strategic growth markets.
- At quarter end, average deposits per banking center exceeded
$113 million, up from $96 million during the same period last
year.
- During the quarter, we completed our previously announced $10
million annual expense reduction initiative, which included
reducing the full time equivalent employee count by 50,
renegotiating key vendor contracts, and reducing expenses across a
number of line items.
Driving Improvements in How Our Business
Operates
- Late last year we launched a large-scale initiative to
implement a fully digital loan origination platform across all
business banking units. In the second quarter, the implementation
and launch were completed. This follows the successful rollout of
our fully digital mortgage banking origination platform. This
investment should lead to significant improvement in operational
efficiency and banker productivity in 2020 and beyond.
Scaling and Evolving Our
Culture
- We continue to invest in business bankers. In the second
quarter we on-boarded 5 new bankers, 15 year to date, in order to
fully support the strong markets we serve. We have a robust
pipeline of talent as we enter the third quarter of 2019 and will
continue to opportunistically add top-tier bankers in the Tampa and
Fort Lauderdale markets.
OTHER INFORMATION
Conference Call
InformationSeacoast will host a conference call on
July 26, 2019 at 10:00 a.m. (Eastern Time) to discuss the
second quarter 2019 earnings results and business trends. Investors
may call in (toll-free) by dialing (888) 517-2513 (passcode: 8644
001; host: Dennis S. Hudson). Charts will be used during the
conference call and may be accessed at Seacoast's website at
www.SeacoastBanking.com by selecting "Presentations" under the
heading "News/Events" A replay of the call will be available for
one month, beginning late afternoon of July 26, 2019 by
dialing (888) 843-7419 (domestic) and using passcode: 8644
001#.
Alternatively, individuals may listen to the
live webcast of the presentation by visiting Seacoast's website at
www.SeacoastBanking.com. The link is located in the subsection
"Presentations" under the heading "Investor Services." Beginning
the afternoon of July 26, 2019, 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 $6.8 billion in assets and $5.5 billion
in deposits as of June 30, 2019. The Company provides
integrated financial services including commercial and retail
banking, wealth management, and mortgage services to customers
through advanced banking solutions, and 49 traditional branches of
its locally-branded, wholly-owned subsidiary bank, Seacoast Bank.
Offices stretch from Fort Lauderdale, Boca Raton and West Palm
Beach north through the Daytona Beach area, into Orlando and
Central Florida and the adjacent Tampa market, and west to
Okeechobee and surrounding counties. More information about the
Company is available at www.SeacoastBanking.com.
Cautionary Notice Regarding
Forward-Looking StatementsThis press release contains
"forward-looking statements" within the meaning, and protections,
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, including, without limitation,
statements about future financial and operating results, cost
savings, enhanced revenues, economic and seasonal conditions in our
markets, and improvements to reported earnings that may be realized
from cost controls, tax law changes, and for integration of banks
that we have acquired, or expect to acquire, as well as statements
with respect to Seacoast's objectives, strategic plans, including
Vision 2020, expectations and intentions and other statements that
are not historical facts. Actual results may differ from those set
forth in the forward-looking statements.
Forward-looking statements include statements
with respect to our beliefs, plans, objectives, goals,
expectations, anticipations, assumptions, estimates and intentions
about future performance and involve known and unknown risks,
uncertainties and other factors, which may be beyond our control,
and which may cause the actual results, performance or achievements
of Seacoast to be materially different from future results,
performance or achievements expressed or implied by such
forward-looking statements. You should not expect us to update any
forward-looking statements.
All statements other than statements of
historical fact could be forward-looking statements. You can
identify these forward-looking statements through our use of words
such as "may", "will", "anticipate", "assume", "should", "support",
"indicate", "would", "believe", "contemplate", "expect",
"estimate", "continue", "further", "plan", "point to", "project",
"could", "intend", "target" or other similar words and expressions
of the future. These forward-looking statements may not be realized
due to a variety of factors, including, without limitation: the
effects of future economic and market conditions, including
seasonality; governmental monetary and fiscal policies, including
interest rate policies of the Board of Governors of the Federal
Reserve, as well as legislative, tax and regulatory changes;
changes in accounting policies, rules and practices; the risks of
changes in interest rates on the level and composition of deposits,
loan demand, liquidity and the values of loan collateral,
securities, and interest sensitive assets and liabilities; interest
rate risks, sensitivities and the shape of the yield curve;
uncertainty related to the impact of LIBOR calculations on
securities and loans; changes in borrower credit risks and payment
behaviors; changes in the availability and cost of credit and
capital in the financial markets; changes in the prices, values and
sales volumes of residential and commercial real estate; our
ability to comply with any regulatory requirements; the effects of
problems encountered by other financial institutions that adversely
affect us or the banking industry; our concentration in commercial
real estate loans; the failure of assumptions and estimates, as
well as differences in, and changes to, economic, market and credit
conditions; the impact on the valuation of our investments due to
market volatility or counterparty payment risk; statutory and
regulatory dividend restrictions; increases in regulatory capital
requirements for banking organizations generally; the risks of
mergers, acquisitions and divestitures, including our ability to
continue to identify acquisition targets and successfully acquire
desirable financial institutions; changes in technology or products
that may be more difficult, costly, or less effective than
anticipated; our ability to identify and address increased
cybersecurity risks; inability of our risk management framework to
manage risks associated with our business; dependence on key
suppliers or vendors to obtain equipment or services for our
business on acceptable terms; reduction in or the termination of
our ability to use the mobile-based platform that is critical to
our business growth strategy; the effects of war or other
conflicts, acts of terrorism, natural disasters or other
catastrophic events that may affect general economic conditions;
unexpected outcomes of, and the costs associated with, existing or
new litigation involving us; our ability to maintain adequate
internal controls over financial reporting; potential claims,
damages, penalties, fines and reputational damage resulting from
pending or future litigation, regulatory proceedings and
enforcement actions; the risks that our deferred tax assets could
be reduced if estimates of future taxable income from our
operations and tax planning strategies are less than currently
estimated and sales of our capital stock could trigger a reduction
in the amount of net operating loss carryforwards that we may be
able to utilize for income tax purposes; the effects of competition
from other commercial banks, thrifts, mortgage banking firms,
consumer finance companies, credit unions, securities brokerage
firms, insurance companies, money market and other mutual funds and
other financial institutions operating in our market areas and
elsewhere, including institutions operating regionally, nationally
and internationally, together with such competitors offering
banking products and services by mail, telephone, computer and the
Internet; and the failure of assumptions underlying the
establishment of reserves for possible loan losses.
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, 2018, under "Special Cautionary Notice
Regarding Forward-looking Statements" and "Risk Factors", and
otherwise in our SEC reports and filings. Such reports are
available upon request from the Company, or from the Securities and
Exchange Commission, including through the SEC's Internet website
at www.sec.gov.
FINANCIAL
HIGHLIGHTS |
(Unaudited) |
|
|
|
|
SEACOAST BANKING CORPORATION OF FLORIDA AND
SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
Quarterly
Trends |
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands,
except ratios and per share data) |
2Q'19 |
|
1Q'19 |
|
4Q'18 |
|
3Q'18 |
|
2Q'18 |
|
2Q'19 |
|
2Q'18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
23,253 |
|
|
$ |
22,705 |
|
|
$ |
15,962 |
|
|
$ |
16,322 |
|
|
$ |
16,964 |
|
|
45,958 |
|
|
34,991 |
|
Adjusted net income1 |
25,818 |
|
|
24,205 |
|
|
23,893 |
|
|
17,626 |
|
|
18,268 |
|
|
50,023 |
|
|
37,566 |
|
Net interest income2 |
60,219 |
|
|
60,861 |
|
|
60,100 |
|
|
51,709 |
|
|
50,294 |
|
|
121,080 |
|
|
100,147 |
|
Net interest margin2,3 |
3.94 |
% |
|
4.02 |
% |
|
4.00 |
% |
|
3.82 |
% |
|
3.77 |
% |
|
3.98 |
% |
|
3.78 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets-GAAP basis3 |
1.38 |
% |
|
1.36 |
% |
|
0.96 |
% |
|
1.10 |
% |
|
1.16 |
% |
|
1.37 |
% |
|
1.20 |
% |
Return on average tangible assets-GAAP basis3,4 |
1.50 |
|
|
1.48 |
|
|
1.05 |
|
|
1.18 |
|
|
1.24 |
|
|
1.49 |
|
|
1.29 |
|
Adjusted return on average tangible assets1,3,4 |
1.59 |
|
|
1.50 |
|
|
1.49 |
|
|
1.22 |
|
|
1.28 |
|
|
1.55 |
|
|
1.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average shareholders' equity-GAAP basis3 |
10.23 |
|
|
10.47 |
|
|
7.65 |
|
|
8.89 |
|
|
9.59 |
|
|
10.35 |
|
|
10.04 |
|
Return on average tangible common equity-GAAP basis3,4 |
14.30 |
|
|
14.86 |
|
|
10.94 |
|
|
12.04 |
|
|
13.08 |
|
|
14.57 |
|
|
13.73 |
|
Adjusted return on average tangible common equity1,3,4 |
15.17 |
|
|
15.11 |
|
|
15.44 |
|
|
12.43 |
|
|
13.49 |
|
|
15.14 |
|
|
14.14 |
|
Efficiency ratio5 |
53.48 |
|
|
56.55 |
|
|
65.76 |
|
|
57.04 |
|
|
58.41 |
|
|
55.01 |
|
|
58.11 |
|
Adjusted efficiency ratio1 |
51.44 |
|
|
55.81 |
|
|
54.19 |
|
|
56.29 |
|
|
57.31 |
|
|
53.62 |
|
|
57.18 |
|
Noninterest income to total revenue (excluding securities
losses) |
18.93 |
|
|
17.45 |
|
|
17.97 |
|
|
19.31 |
|
|
20.28 |
|
|
18.19 |
|
|
20.11 |
|
Tangible common equity to tangible assets4 |
10.65 |
|
|
10.18 |
|
|
9.72 |
|
|
9.85 |
|
|
9.56 |
|
|
10.65 |
|
|
9.56 |
|
Average loan-to-deposit ratio |
87.27 |
|
|
90.55 |
|
|
89.14 |
|
|
86.25 |
|
|
83.51 |
|
|
88.87 |
|
|
83.80 |
|
End of period loan-to-deposit ratio |
88.53 |
|
|
86.38 |
|
|
93.43 |
|
|
87.77 |
|
|
84.91 |
|
|
88.53 |
|
|
84.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income diluted-GAAP basis |
$ |
0.45 |
|
|
$ |
0.44 |
|
|
$ |
0.31 |
|
|
$ |
0.34 |
|
|
$ |
0.35 |
|
|
$ |
0.88 |
|
|
$ |
0.73 |
|
Net income basic-GAAP basis |
0.45 |
|
|
0.44 |
|
|
0.32 |
|
|
0.35 |
|
|
0.36 |
|
|
0.89 |
|
|
0.74 |
|
Adjusted earnings1 |
0.50 |
|
|
0.47 |
|
|
0.47 |
|
|
0.37 |
|
|
0.38 |
|
|
0.96 |
|
|
0.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share common |
18.08 |
|
|
17.44 |
|
|
16.83 |
|
|
15.50 |
|
|
15.18 |
|
|
18.08 |
|
|
15.18 |
|
Tangible book value per share |
13.65 |
|
|
12.98 |
|
|
12.33 |
|
|
12.01 |
|
|
11.67 |
|
|
13.65 |
|
|
11.67 |
|
Cash dividends declared |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Non-GAAP measure - see "Explanation of Certain
Unaudited Non-GAAP Financial Measures" for more information and a
reconciliation to GAAP. |
|
|
2Calculated on a fully taxable equivalent basis
using amortized cost. |
|
|
3These ratios are stated on an annualized basis
and are not necessarily indicative of future periods. |
|
|
4The Company defines tangible assets as total
assets less intangible assets, and tangible common equity as total
shareholders' equity less intangible assets. |
|
|
5Defined as noninterest expense less amortization
of intangibles and gains, losses, and expenses on foreclosed
properties divided by net operating revenue (net interest
income on a fully taxable equivalent basis plus noninterest income
excluding securities gains). |
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|
(Unaudited) |
|
|
|
|
|
|
SEACOAST BANKING CORPORATION OF FLORIDA AND
SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
Quarterly
Trends |
|
Six Months
Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands,
except per share data) |
2Q'19 |
|
1Q'19 |
|
4Q'18 |
|
3Q'18 |
|
2Q'18 |
|
2Q'19 |
|
2Q'18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
8,933 |
|
|
$ |
9,119 |
|
|
$ |
9,528 |
|
|
$ |
9,582 |
|
|
$ |
9,389 |
|
|
$ |
18,052 |
|
|
$ |
18,750 |
|
Nontaxable |
143 |
|
|
151 |
|
|
200 |
|
|
225 |
|
|
216 |
|
|
294 |
|
|
459 |
|
Interest and fees on loans |
62,288 |
|
|
62,287 |
|
|
59,495 |
|
|
48,713 |
|
|
46,519 |
|
|
124,575 |
|
|
91,776 |
|
Interest on federal funds sold and other investments |
873 |
|
|
918 |
|
|
835 |
|
|
634 |
|
|
585 |
|
|
1,791 |
|
|
1,201 |
|
Total Interest Income |
72,237 |
|
|
72,475 |
|
|
70,058 |
|
|
59,154 |
|
|
56,709 |
|
|
144,712 |
|
|
112,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
4,825 |
|
|
3,873 |
|
|
3,140 |
|
|
2,097 |
|
|
1,988 |
|
|
8,698 |
|
|
3,526 |
|
Interest on time certificates |
5,724 |
|
|
4,959 |
|
|
3,901 |
|
|
2,975 |
|
|
2,629 |
|
|
10,683 |
|
|
4,808 |
|
Interest on borrowed money |
1,552 |
|
|
2,869 |
|
|
3,033 |
|
|
2,520 |
|
|
1,885 |
|
|
4,421 |
|
|
3,883 |
|
Total Interest Expense |
12,101 |
|
|
11,701 |
|
|
10,074 |
|
|
7,592 |
|
|
6,502 |
|
|
23,802 |
|
|
12,217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income |
60,136 |
|
|
60,774 |
|
|
59,984 |
|
|
51,562 |
|
|
50,207 |
|
|
120,910 |
|
|
99,969 |
|
Provision for loan losses |
2,551 |
|
|
1,397 |
|
|
2,342 |
|
|
5,774 |
|
|
2,529 |
|
|
3,948 |
|
|
3,614 |
|
Net Interest Income After Provision for Loan
Losses |
57,585 |
|
|
59,377 |
|
|
57,642 |
|
|
45,788 |
|
|
47,678 |
|
|
116,962 |
|
|
96,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
2,894 |
|
|
2,697 |
|
|
3,019 |
|
|
2,833 |
|
|
2,674 |
|
|
5,591 |
|
|
5,346 |
|
Trust fees |
1,147 |
|
|
1,017 |
|
|
1,040 |
|
|
1,083 |
|
|
1,039 |
|
|
2,164 |
|
|
2,060 |
|
Mortgage banking fees |
1,734 |
|
|
1,115 |
|
|
809 |
|
|
1,135 |
|
|
1,336 |
|
|
2,849 |
|
|
2,738 |
|
Brokerage commissions and fees |
541 |
|
|
436 |
|
|
468 |
|
|
444 |
|
|
461 |
|
|
977 |
|
|
820 |
|
Marine finance fees |
201 |
|
|
362 |
|
|
185 |
|
|
194 |
|
|
446 |
|
|
563 |
|
|
1,019 |
|
Interchange income |
3,405 |
|
|
3,401 |
|
|
3,198 |
|
|
3,119 |
|
|
3,076 |
|
|
6,806 |
|
|
6,018 |
|
BOLI income |
927 |
|
|
915 |
|
|
1,091 |
|
|
1,078 |
|
|
1,066 |
|
|
1,842 |
|
|
2,122 |
|
SBA gains |
691 |
|
|
636 |
|
|
519 |
|
|
473 |
|
|
748 |
|
|
1,327 |
|
|
1,482 |
|
Other |
2,503 |
|
|
2,266 |
|
|
2,810 |
|
|
1,980 |
|
|
1,923 |
|
|
4,769 |
|
|
3,562 |
|
|
14,043 |
|
|
12,845 |
|
|
13,139 |
|
|
12,339 |
|
|
12,769 |
|
|
26,888 |
|
|
25,167 |
|
Securities losses, net |
(466 |
) |
|
(9 |
) |
|
(425 |
) |
|
(48 |
) |
|
(48 |
) |
|
(475 |
) |
|
(150 |
) |
Total Noninterest Income |
13,577 |
|
|
12,836 |
|
|
12,714 |
|
|
12,291 |
|
|
12,721 |
|
|
26,413 |
|
|
25,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and wages |
19,420 |
|
|
18,506 |
|
|
22,172 |
|
|
17,129 |
|
|
16,429 |
|
|
37,926 |
|
|
31,810 |
|
Employee benefits |
3,195 |
|
|
4,206 |
|
|
3,625 |
|
|
3,205 |
|
|
3,034 |
|
|
7,401 |
|
|
6,115 |
|
Outsourced data processing costs |
3,876 |
|
|
3,845 |
|
|
5,809 |
|
|
3,493 |
|
|
3,393 |
|
|
7,721 |
|
|
7,072 |
|
Telephone / data lines |
893 |
|
|
811 |
|
|
602 |
|
|
624 |
|
|
643 |
|
|
1,704 |
|
|
1,255 |
|
Occupancy |
3,741 |
|
|
3,807 |
|
|
3,747 |
|
|
3,214 |
|
|
3,316 |
|
|
7,548 |
|
|
6,433 |
|
Furniture and equipment |
1,544 |
|
|
1,757 |
|
|
2,452 |
|
|
1,367 |
|
|
1,468 |
|
|
3,301 |
|
|
2,925 |
|
Marketing |
1,211 |
|
|
1,132 |
|
|
1,350 |
|
|
1,139 |
|
|
1,344 |
|
|
2,343 |
|
|
2,596 |
|
Legal and professional fees |
2,033 |
|
|
2,847 |
|
|
3,668 |
|
|
2,019 |
|
|
2,301 |
|
|
4,880 |
|
|
4,274 |
|
FDIC assessments |
337 |
|
|
488 |
|
|
571 |
|
|
431 |
|
|
595 |
|
|
825 |
|
|
1,193 |
|
Amortization of intangibles |
1,456 |
|
|
1,458 |
|
|
1,303 |
|
|
1,004 |
|
|
1,004 |
|
|
2,914 |
|
|
1,993 |
|
Foreclosed property expense and net (gain)/loss on sale |
(174 |
) |
|
(40 |
) |
|
— |
|
|
(136 |
) |
|
405 |
|
|
(214 |
) |
|
597 |
|
Other |
3,468 |
|
|
4,282 |
|
|
4,165 |
|
|
3,910 |
|
|
4,314 |
|
|
7,750 |
|
|
9,147 |
|
Total Noninterest Expense |
41,000 |
|
|
43,099 |
|
|
49,464 |
|
|
37,399 |
|
|
38,246 |
|
|
84,099 |
|
|
75,410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes |
30,162 |
|
|
29,114 |
|
|
20,892 |
|
|
20,680 |
|
|
22,153 |
|
|
59,276 |
|
|
45,962 |
|
Income taxes |
6,909 |
|
|
6,409 |
|
|
4,930 |
|
|
4,358 |
|
|
5,189 |
|
|
13,318 |
|
|
10,971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
23,253 |
|
|
$ |
22,705 |
|
|
$ |
15,962 |
|
|
$ |
16,322 |
|
|
$ |
16,964 |
|
|
$ |
45,958 |
|
|
$ |
34,991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share of common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income diluted |
$ |
0.45 |
|
|
$ |
0.44 |
|
|
$ |
0.31 |
|
|
$ |
0.34 |
|
|
$ |
0.35 |
|
|
$ |
0.88 |
|
|
$ |
0.73 |
|
Net income basic |
0.45 |
|
|
0.44 |
|
|
0.32 |
|
|
0.35 |
|
|
0.36 |
|
|
0.89 |
|
|
0.74 |
|
Cash dividends declared |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted shares outstanding |
51,952 |
|
|
52,039 |
|
|
51,237 |
|
|
48,029 |
|
|
47,974 |
|
|
51,998 |
|
|
47,828 |
|
Average basic shares outstanding |
51,446 |
|
|
51,359 |
|
|
50,523 |
|
|
47,205 |
|
|
47,165 |
|
|
51,403 |
|
|
47,059 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
(Unaudited) |
|
|
SEACOAST BANKING CORPORATION OF FLORIDA AND
SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(Amounts in thousands) |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
97,792 |
|
|
$ |
98,270 |
|
|
$ |
92,242 |
|
|
$ |
101,920 |
|
|
$ |
123,927 |
|
Interest bearing deposits with other banks |
|
61,987 |
|
|
105,741 |
|
|
23,709 |
|
|
3,174 |
|
|
7,594 |
|
Total Cash and Cash Equivalents |
|
159,779 |
|
|
204,011 |
|
|
115,951 |
|
|
105,094 |
|
|
131,521 |
|
|
|
|
|
|
|
|
|
|
|
|
Time deposits with other banks |
|
4,980 |
|
|
8,174 |
|
|
8,243 |
|
|
9,813 |
|
|
10,562 |
|
|
|
|
|
|
|
|
|
|
|
|
Debt Securities: |
|
|
|
|
|
|
|
|
|
|
Available for sale (at fair value) |
|
914,615 |
|
|
877,549 |
|
|
865,831 |
|
|
923,206 |
|
|
954,906 |
|
Held to maturity (at amortized cost) |
|
287,302 |
|
|
295,485 |
|
|
357,949 |
|
|
367,387 |
|
|
382,137 |
|
Total Debt Securities |
|
1,201,917 |
|
|
1,173,034 |
|
|
1,223,780 |
|
|
1,290,593 |
|
|
1,337,043 |
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for sale |
|
17,513 |
|
|
13,900 |
|
|
11,873 |
|
|
16,172 |
|
|
14,707 |
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
4,888,139 |
|
|
4,828,441 |
|
|
4,825,214 |
|
|
4,059,323 |
|
|
3,974,016 |
|
Less: Allowance for loan losses |
|
(33,505 |
) |
|
(32,822 |
) |
|
(32,423 |
) |
|
(33,865 |
) |
|
(28,924 |
) |
Net Loans |
|
4,854,634 |
|
|
4,795,619 |
|
|
4,792,791 |
|
|
4,025,458 |
|
|
3,945,092 |
|
|
|
|
|
|
|
|
|
|
|
|
Bank premises and equipment, net |
|
68,738 |
|
|
70,412 |
|
|
71,024 |
|
|
63,531 |
|
|
63,991 |
|
Other real estate owned |
|
11,043 |
|
|
11,921 |
|
|
12,802 |
|
|
4,715 |
|
|
8,417 |
|
Goodwill |
|
205,260 |
|
|
205,260 |
|
|
204,753 |
|
|
148,555 |
|
|
148,555 |
|
Other intangible assets, net |
|
22,672 |
|
|
23,959 |
|
|
25,977 |
|
|
16,508 |
|
|
17,319 |
|
Bank owned life insurance |
|
125,233 |
|
|
124,306 |
|
|
123,394 |
|
|
122,561 |
|
|
121,602 |
|
Net deferred tax assets |
|
19,353 |
|
|
24,647 |
|
|
28,954 |
|
|
25,822 |
|
|
26,021 |
|
Other assets |
|
133,764 |
|
|
128,146 |
|
|
128,117 |
|
|
102,112 |
|
|
97,851 |
|
Total Assets |
|
$ |
6,824,886 |
|
|
$ |
6,783,389 |
|
|
$ |
6,747,659 |
|
|
$ |
5,930,934 |
|
|
$ |
5,922,681 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
Noninterest demand |
|
$ |
1,669,804 |
|
|
$ |
1,676,009 |
|
|
$ |
1,569,602 |
|
|
$ |
1,488,689 |
|
|
$ |
1,463,652 |
|
Interest-bearing demand |
|
1,124,519 |
|
|
1,100,477 |
|
|
1,014,032 |
|
|
912,891 |
|
|
976,281 |
|
Savings |
|
519,732 |
|
|
508,320 |
|
|
493,807 |
|
|
451,958 |
|
|
444,736 |
|
Money market |
|
1,172,971 |
|
|
1,192,070 |
|
|
1,173,950 |
|
|
1,036,940 |
|
|
1,023,170 |
|
Other time certificates |
|
553,107 |
|
|
539,202 |
|
|
513,312 |
|
|
411,208 |
|
|
413,643 |
|
Brokered time certificates |
|
268,998 |
|
|
367,841 |
|
|
220,594 |
|
|
192,182 |
|
|
228,602 |
|
Time certificates of more than $250,000 |
|
232,078 |
|
|
221,659 |
|
|
191,943 |
|
|
149,642 |
|
|
147,356 |
|
Total Deposits |
|
5,541,209 |
|
|
5,605,578 |
|
|
5,177,240 |
|
|
4,643,510 |
|
|
4,697,440 |
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under agreements to repurchase |
|
82,015 |
|
|
148,005 |
|
|
214,323 |
|
|
189,035 |
|
|
200,050 |
|
Federal Home Loan Bank borrowings |
|
140,000 |
|
|
3,000 |
|
|
380,000 |
|
|
261,000 |
|
|
205,000 |
|
Subordinated debt |
|
70,944 |
|
|
70,874 |
|
|
70,804 |
|
|
70,734 |
|
|
70,664 |
|
Other liabilities |
|
60,479 |
|
|
59,508 |
|
|
41,025 |
|
|
33,824 |
|
|
33,364 |
|
Total Liabilities |
|
5,894,647 |
|
|
5,886,965 |
|
|
5,883,392 |
|
|
5,198,103 |
|
|
5,206,518 |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
Common stock |
|
5,146 |
|
|
5,141 |
|
|
5,136 |
|
|
4,727 |
|
|
4,716 |
|
Additional paid in capital |
|
782,928 |
|
|
780,680 |
|
|
778,501 |
|
|
668,711 |
|
|
665,885 |
|
Retained earnings |
|
143,032 |
|
|
119,779 |
|
|
97,074 |
|
|
81,112 |
|
|
64,790 |
|
Treasury stock |
|
(6,137 |
) |
|
(4,959 |
) |
|
(3,384 |
) |
|
(2,854 |
) |
|
(2,884 |
) |
|
|
924,969 |
|
|
900,641 |
|
|
877,327 |
|
|
751,696 |
|
|
732,507 |
|
Accumulated other comprehensive income/(loss), net |
|
5,270 |
|
|
(4,217 |
) |
|
(13,060 |
) |
|
(18,865 |
) |
|
(16,344 |
) |
Total Shareholders' Equity |
|
930,239 |
|
|
896,424 |
|
|
864,267 |
|
|
732,831 |
|
|
716,163 |
|
Total Liabilities & Shareholders' Equity |
|
$ |
6,824,886 |
|
|
$ |
6,783,389 |
|
|
$ |
6,747,659 |
|
|
$ |
5,930,934 |
|
|
$ |
5,922,681 |
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
51,461 |
|
|
51,414 |
|
|
51,361 |
|
|
47,270 |
|
|
47,163 |
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED QUARTERLY FINANCIAL DATA |
(Unaudited) |
SEACOAST BANKING
CORPORATION OF FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands) |
2Q'19 |
|
1Q'19 |
|
4Q'18 |
|
3Q'18 |
|
2Q'18 |
|
|
|
|
|
|
|
|
|
|
Credit
Analysis |
|
|
|
|
|
|
|
|
|
Net charge-offs (recoveries) - non-acquired loans |
$ |
1,621 |
|
|
$ |
762 |
|
|
$ |
3,693 |
|
|
$ |
800 |
|
|
$ |
1,715 |
|
Net charge-offs (recoveries) - acquired loans |
220 |
|
|
201 |
|
|
56 |
|
|
(3 |
) |
|
(25 |
) |
Total Net Charge-offs (Recoveries) |
1,841 |
|
|
963 |
|
|
3,749 |
|
|
797 |
|
|
1,690 |
|
|
|
|
|
|
|
|
|
|
|
TDR valuation adjustments |
$ |
27 |
|
|
$ |
35 |
|
|
$ |
35 |
|
|
$ |
36 |
|
|
$ |
33 |
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (recoveries) to average loans - non-acquired
loans |
0.13 |
% |
|
0.06 |
% |
|
0.32 |
% |
|
0.08 |
% |
|
0.17 |
% |
Net charge-offs (recoveries) to average loans - acquired loans |
0.02 |
|
|
0.02 |
|
|
— |
|
|
— |
|
|
— |
|
Total Net Charge-offs (Recoveries) to Average
Loans |
0.15 |
|
|
0.08 |
|
|
0.32 |
|
|
0.08 |
|
|
0.17 |
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses - non-acquired loans |
$ |
2,326 |
|
|
$ |
1,709 |
|
|
$ |
2,343 |
|
|
$ |
5,640 |
|
|
$ |
2,591 |
|
Provision for (recapture of) loan losses - acquired loans |
225 |
|
|
(312 |
) |
|
(1 |
) |
|
134 |
|
|
(62 |
) |
Total Provision for Loan Losses |
$ |
2,551 |
|
|
$ |
1,397 |
|
|
$ |
2,342 |
|
|
$ |
5,774 |
|
|
$ |
2,529 |
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses - non-acquired loans |
$ |
33,393 |
|
|
$ |
32,715 |
|
|
$ |
31,803 |
|
|
$ |
33,188 |
|
|
$ |
28,384 |
|
Allowance for loan losses - acquired loans |
112 |
|
|
107 |
|
|
620 |
|
|
677 |
|
|
540 |
|
Total Allowance for Loan Losses |
$ |
33,505 |
|
|
$ |
32,822 |
|
|
$ |
32,423 |
|
|
$ |
33,865 |
|
|
$ |
28,924 |
|
|
|
|
|
|
|
|
|
|
|
Non-acquired loans at end of period |
$ |
3,817,358 |
|
|
$ |
3,667,221 |
|
|
$ |
3,588,251 |
|
|
$ |
3,383,571 |
|
|
$ |
3,221,569 |
|
Purchased noncredit impaired loans at end of period |
1,057,200 |
|
|
1,147,432 |
|
|
1,222,529 |
|
|
662,701 |
|
|
739,232 |
|
Purchased credit impaired loans at end of period |
13,581 |
|
|
13,788 |
|
|
14,434 |
|
|
13,051 |
|
|
13,215 |
|
Total Loans |
$ |
4,888,139 |
|
|
$ |
4,828,441 |
|
|
$ |
4,825,214 |
|
|
$ |
4,059,323 |
|
|
$ |
3,974,016 |
|
|
|
|
|
|
|
|
|
|
|
Non-acquired loans allowance
for loan losses to non-acquired loans at end of period |
0.87 |
% |
|
0.89 |
% |
|
0.89 |
% |
|
0.98 |
% |
|
0.88 |
% |
Total allowance for loan
losses to total loans at end of period |
0.69 |
|
|
0.68 |
|
|
0.67 |
|
|
0.83 |
|
|
0.73 |
|
Purchase discount on acquired
loans at end of period |
3.76 |
|
|
3.80 |
|
|
3.86 |
|
|
2.25 |
|
|
2.31 |
|
|
|
|
|
|
|
|
|
|
|
End of
Period |
|
|
|
|
|
|
|
|
|
Nonperforming loans - non-acquired |
$ |
15,810 |
|
|
$ |
15,423 |
|
|
$ |
15,783 |
|
|
$ |
18,998 |
|
|
$ |
19,578 |
|
Nonperforming loans - acquired |
6,986 |
|
|
6,990 |
|
|
10,693 |
|
|
7,142 |
|
|
6,624 |
|
Other real estate owned - non-acquired |
66 |
|
|
831 |
|
|
386 |
|
|
418 |
|
|
354 |
|
Other real estate owned - acquired |
1,612 |
|
|
1,725 |
|
|
3,020 |
|
|
1,203 |
|
|
4,969 |
|
Bank branches closed included in other real estate owned |
9,365 |
|
|
9,365 |
|
|
9,396 |
|
|
3,094 |
|
|
3,094 |
|
Total Nonperforming Assets |
$ |
33,839 |
|
|
$ |
34,334 |
|
|
$ |
39,278 |
|
|
$ |
30,855 |
|
|
$ |
34,619 |
|
|
|
|
|
|
|
|
|
|
|
Restructured loans (accruing) |
$ |
14,534 |
|
|
$ |
14,857 |
|
|
$ |
13,346 |
|
|
$ |
13,797 |
|
|
$ |
14,241 |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to loans at end of period - non-acquired |
0.41 |
% |
|
0.42 |
% |
|
0.44 |
% |
|
0.56 |
% |
|
0.61 |
% |
Nonperforming loans to loans at end of period - acquired |
0.65 |
|
|
0.60 |
|
|
0.86 |
|
|
1.06 |
|
|
0.88 |
|
Total Nonperforming Loans to Loans at End of Period |
0.47 |
|
|
0.46 |
|
|
0.55 |
|
|
0.64 |
|
|
0.66 |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets - non-acquired |
0.37 |
% |
|
0.38 |
% |
|
0.38 |
% |
|
0.38 |
% |
|
0.39 |
% |
Nonperforming assets to total assets - acquired |
0.13 |
|
|
0.13 |
|
|
0.20 |
|
|
0.14 |
|
|
0.19 |
|
Total Nonperforming Assets to Total Assets |
0.50 |
|
|
0.51 |
|
|
0.58 |
|
|
0.52 |
|
|
0.58 |
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
Loans |
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
Construction and land
development |
$ |
379,991 |
|
|
$ |
417,565 |
|
|
$ |
443,568 |
|
|
$ |
376,257 |
|
|
$ |
359,070 |
|
Commercial real estate - owner
occupied |
1,005,876 |
|
|
989,234 |
|
|
970,181 |
|
|
829,368 |
|
|
812,306 |
|
Commercial real estate -
non-owner occupied |
1,184,409 |
|
|
1,173,183 |
|
|
1,161,885 |
|
|
897,331 |
|
|
888,989 |
|
Residential real estate |
1,400,184 |
|
|
1,329,166 |
|
|
1,324,377 |
|
|
1,152,640 |
|
|
1,103,946 |
|
Consumer |
215,932 |
|
|
206,414 |
|
|
202,881 |
|
|
192,772 |
|
|
190,835 |
|
Commercial and financial |
701,747 |
|
|
712,879 |
|
|
722,322 |
|
|
610,955 |
|
|
618,870 |
|
Total Loans |
$ |
4,888,139 |
|
|
$ |
4,828,441 |
|
|
$ |
4,825,214 |
|
|
$ |
4,059,323 |
|
|
$ |
3,974,016 |
|
|
|
|
|
|
|
|
|
|
|
AVERAGE
BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES
1 |
(Unaudited) |
|
|
|
|
|
|
SEACOAST
BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q'19 |
|
1Q'19 |
|
2Q'18 |
|
Average |
|
|
|
Yield/ |
|
Average |
|
|
|
Yield/ |
|
Average |
|
|
|
Yield/ |
(Amounts in thousands) |
Balance |
|
Interest |
|
Rate |
|
Balance |
|
Interest |
|
Rate |
|
Balance |
|
Interest |
|
Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
1,169,891 |
|
|
$ |
8,933 |
|
|
3.05 |
% |
|
$ |
1,186,374 |
|
|
$ |
9,119 |
|
|
3.07 |
% |
|
$ |
1,324,280 |
|
|
$ |
9,389 |
|
|
2.84 |
% |
Nontaxable |
24,110 |
|
|
179 |
|
|
2.96 |
|
|
26,561 |
|
|
190 |
|
|
2.86 |
|
|
32,055 |
|
|
273 |
|
|
3.41 |
|
Total Securities |
1,194,001 |
|
|
9,112 |
|
|
3.05 |
|
|
1,212,935 |
|
|
9,309 |
|
|
3.07 |
|
|
1,356,335 |
|
|
9,662 |
|
|
2.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investments |
91,481 |
|
|
873 |
|
|
3.83 |
|
|
91,136 |
|
|
918 |
|
|
4.09 |
|
|
49,387 |
|
|
585 |
|
|
4.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net |
4,841,751 |
|
|
62,335 |
|
|
5.16 |
|
|
4,839,046 |
|
|
62,335 |
|
|
5.22 |
|
|
3,948,460 |
|
|
46,549 |
|
|
4.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Earning Assets |
6,127,233 |
|
|
72,320 |
|
|
4.73 |
|
|
6,143,117 |
|
|
72,562 |
|
|
4.79 |
|
|
5,354,182 |
|
|
56,796 |
|
|
4.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
(32,806 |
) |
|
|
|
|
|
(32,966 |
) |
|
|
|
|
|
(29,234 |
) |
|
|
|
|
Cash and due from banks |
91,160 |
|
|
|
|
|
|
99,940 |
|
|
|
|
|
|
110,549 |
|
|
|
|
|
Premises and equipment |
69,890 |
|
|
|
|
|
|
70,938 |
|
|
|
|
|
|
64,445 |
|
|
|
|
|
Intangible assets |
228,706 |
|
|
|
|
|
|
230,066 |
|
|
|
|
|
|
166,393 |
|
|
|
|
|
Bank owned life insurance |
124,631 |
|
|
|
|
|
|
123,708 |
|
|
|
|
|
|
121,008 |
|
|
|
|
|
Other assets |
126,180 |
|
|
|
|
|
|
136,175 |
|
|
|
|
|
|
90,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
$ |
6,734,994 |
|
|
|
|
|
|
$ |
6,770,978 |
|
|
|
|
|
|
$ |
5,878,035 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
$ |
1,118,703 |
|
|
$ |
1,150 |
|
|
0.41 |
% |
|
$ |
1,029,726 |
|
|
$ |
839 |
|
|
0.33 |
% |
|
$ |
996,929 |
|
|
$ |
492 |
|
|
0.20 |
% |
Savings |
513,773 |
|
|
586 |
|
|
0.46 |
|
|
500,347 |
|
|
477 |
|
|
0.39 |
|
|
439,691 |
|
|
118 |
|
|
0.11 |
|
Money market |
1,179,345 |
|
|
3,089 |
|
|
1.05 |
|
|
1,158,939 |
|
|
2,557 |
|
|
0.89 |
|
|
1,027,705 |
|
|
1,378 |
|
|
0.54 |
|
Time deposits |
1,089,020 |
|
|
5,724 |
|
|
2.11 |
|
|
1,042,346 |
|
|
4,959 |
|
|
1.93 |
|
|
790,404 |
|
|
2,629 |
|
|
1.33 |
|
Federal funds purchased and securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sold under agreements to repurchase |
91,614 |
|
|
355 |
|
|
1.55 |
|
|
185,032 |
|
|
550 |
|
|
1.21 |
|
|
179,540 |
|
|
334 |
|
|
0.75 |
|
Federal Home Loan Bank borrowings |
51,571 |
|
|
329 |
|
|
2.56 |
|
|
227,378 |
|
|
1,421 |
|
|
2.53 |
|
|
160,846 |
|
|
741 |
|
|
1.85 |
|
Other borrowings |
70,903 |
|
|
868 |
|
|
4.91 |
|
|
70,836 |
|
|
898 |
|
|
5.14 |
|
|
70,623 |
|
|
810 |
|
|
4.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Interest-Bearing Liabilities |
4,114,929 |
|
|
12,101 |
|
|
1.18 |
|
|
4,214,604 |
|
|
11,701 |
|
|
1.13 |
|
|
3,665,738 |
|
|
6,502 |
|
|
0.71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest demand |
1,646,934 |
|
|
|
|
|
|
1,612,548 |
|
|
|
|
|
|
1,473,331 |
|
|
|
|
|
Other liabilities |
61,652 |
|
|
|
|
|
|
64,262 |
|
|
|
|
|
|
29,292 |
|
|
|
|
|
Total Liabilities |
5,823,515 |
|
|
|
|
|
|
5,891,414 |
|
|
|
|
|
|
5,168,361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
911,479 |
|
|
|
|
|
|
879,564 |
|
|
|
|
|
|
709,674 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities & Equity |
$ |
6,734,994 |
|
|
|
|
|
|
$ |
6,770,978 |
|
|
|
|
|
|
$ |
5,878,035 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of deposits |
|
|
|
|
0.76 |
% |
|
|
|
|
|
0.67 |
% |
|
|
|
|
|
0.39 |
% |
Interest expense as a % of
earning assets |
|
|
|
|
0.79 |
% |
|
|
|
|
|
0.77 |
% |
|
|
|
|
|
0.49 |
% |
Net interest income as a % of
earning assets |
|
|
$ |
60,219 |
|
|
3.94 |
% |
|
|
|
$ |
60,861 |
|
|
4.02 |
% |
|
|
|
$ |
50,294 |
|
|
3.77 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1On a fully
taxable equivalent basis. All yields and rates have been
computed using amortized cost. |
|
|
|
|
Fees on loans
have been included in interest on loans. Nonaccrual loans are
included in loan balances. |
|
|
|
|
AVERAGE
BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES
1 |
(Unaudited) |
SEACOAST
BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2019 |
|
Six Months Ended June 30, 2018 |
|
Average |
|
|
|
Yield/ |
|
Average |
|
|
|
Yield/ |
(Amounts in thousands, except ratios) |
Balance |
|
Interest |
|
Rate |
|
Balance |
|
Interest |
|
Rate |
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
1,178,087 |
|
|
$ |
18,052 |
|
|
3.06 |
% |
|
$ |
1,342,676 |
|
|
$ |
18,750 |
|
|
2.79 |
% |
Nontaxable |
25,329 |
|
|
368 |
|
|
2.91 |
|
|
32,346 |
|
|
580 |
|
|
3.59 |
|
Total Securities |
1,203,416 |
|
|
18,420 |
|
|
3.06 |
|
|
1,375,022 |
|
|
19,330 |
|
|
2.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and other |
|
|
|
|
|
|
|
|
|
|
|
investments |
91,310 |
|
|
1,791 |
|
|
3.96 |
|
|
52,761 |
|
|
1,201 |
|
|
4.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net |
4,840,406 |
|
|
124,671 |
|
|
5.19 |
|
|
3,910,625 |
|
|
91,833 |
|
|
4.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Earning Assets |
6,135,132 |
|
|
144,882 |
|
|
4.76 |
|
|
5,338,408 |
|
|
112,364 |
|
|
4.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
(32,885 |
) |
|
|
|
|
|
(28,356 |
) |
|
|
|
|
Cash and due from banks |
95,526 |
|
|
|
|
|
|
112,215 |
|
|
|
|
|
Premises and equipment |
70,411 |
|
|
|
|
|
|
65,184 |
|
|
|
|
|
Intangible assets |
229,382 |
|
|
|
|
|
|
166,762 |
|
|
|
|
|
Bank owned life insurance |
124,172 |
|
|
|
|
|
|
121,635 |
|
|
|
|
|
Other assets |
131,148 |
|
|
|
|
|
|
89,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
$ |
6,752,886 |
|
|
|
|
|
|
$ |
5,864,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
$ |
1,074,460 |
|
|
$ |
1,989 |
|
|
0.37 |
% |
|
$ |
999,287 |
|
|
$ |
942 |
|
|
0.19 |
% |
Savings |
507,097 |
|
|
1,062 |
|
|
0.42 |
|
|
437,574 |
|
|
222 |
|
|
0.10 |
|
Money market |
1,169,198 |
|
|
5,647 |
|
|
0.97 |
|
|
1,002,243 |
|
|
2,362 |
|
|
0.48 |
|
Time deposits |
1,065,812 |
|
|
10,683 |
|
|
2.02 |
|
|
783,643 |
|
|
4,808 |
|
|
1.24 |
|
Federal funds purchased and securities |
|
|
|
|
|
|
|
|
|
|
|
sold under agreements to repurchase |
138,065 |
|
|
905 |
|
|
1.32 |
|
|
177,771 |
|
|
608 |
|
|
0.69 |
|
Federal Home Loan Bank borrowings |
138,989 |
|
|
1,750 |
|
|
2.54 |
|
|
218,298 |
|
|
1,771 |
|
|
1.64 |
|
Other borrowings |
70,870 |
|
|
1,766 |
|
|
5.03 |
|
|
70,587 |
|
|
1,504 |
|
|
4.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Interest-Bearing Liabilities |
4,164,491 |
|
|
23,802 |
|
|
1.15 |
|
|
3,689,403 |
|
|
12,217 |
|
|
0.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest demand |
1,629,836 |
|
|
|
|
|
|
1,443,813 |
|
|
|
|
|
Other liabilities |
62,949 |
|
|
|
|
|
|
29,221 |
|
|
|
|
|
Total Liabilities |
5,857,276 |
|
|
|
|
|
|
5,162,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
895,610 |
|
|
|
|
|
|
702,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities & Equity |
$ |
6,752,886 |
|
|
|
|
|
|
$ |
5,864,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of deposits |
|
|
|
|
0.72 |
% |
|
|
|
|
|
0.36 |
% |
Interest expense as a % of
earning assets |
|
|
|
|
0.78 |
% |
|
|
|
|
|
0.46 |
% |
Net interest income as a % of
earning assets |
|
|
$ |
121,080 |
|
|
3.98 |
% |
|
|
|
$ |
100,147 |
|
|
3.78 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1On a fully
taxable equivalent basis. All yields and rates have been
computed using amortized cost. |
Fees on loans
have been included in interest on loans. Nonaccrual loans are
included in loan balances. |
CONSOLIDATED QUARTERLY FINANCIAL DATA |
|
|
(Unaudited) |
|
|
|
SEACOAST BANKING CORPORATION OF FLORIDA AND
SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(Amounts in thousands) |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
Customer Relationship Funding |
|
|
|
|
|
|
|
|
|
|
Noninterest demand |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
$ |
1,323,743 |
|
|
$ |
1,298,468 |
|
|
$ |
1,217,842 |
|
|
$ |
1,182,018 |
|
|
$ |
1,154,225 |
|
Retail |
|
|
251,879 |
|
|
275,383 |
|
|
259,318 |
|
|
233,472 |
|
|
236,838 |
|
Public funds |
|
|
65,822 |
|
|
73,640 |
|
|
68,324 |
|
|
42,474 |
|
|
44,182 |
|
Other |
|
|
28,360 |
|
|
28,518 |
|
|
24,118 |
|
|
30,725 |
|
|
28,407 |
|
Total Noninterest Demand |
|
1,669,804 |
|
|
1,676,009 |
|
|
1,569,602 |
|
|
1,488,689 |
|
|
1,463,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
323,818 |
|
|
289,544 |
|
|
211,879 |
|
|
167,865 |
|
|
181,646 |
|
Retail |
|
|
634,099 |
|
|
646,522 |
|
|
650,490 |
|
|
655,429 |
|
|
681,615 |
|
Public funds |
|
|
166,602 |
|
|
164,411 |
|
|
151,663 |
|
|
89,597 |
|
|
113,020 |
|
Total Interest-Bearing Demand |
|
1,124,519 |
|
|
1,100,477 |
|
|
1,014,032 |
|
|
912,891 |
|
|
976,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total transaction accounts |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
1,647,561 |
|
|
1,588,012 |
|
|
1,429,721 |
|
|
1,349,883 |
|
|
1,335,871 |
|
Retail |
|
|
885,978 |
|
|
921,905 |
|
|
909,808 |
|
|
888,901 |
|
|
918,453 |
|
Public funds |
|
|
232,424 |
|
|
238,051 |
|
|
219,987 |
|
|
132,071 |
|
|
157,202 |
|
Other |
|
|
28,360 |
|
|
28,518 |
|
|
24,118 |
|
|
30,725 |
|
|
28,407 |
|
Total Transaction Accounts |
|
2,794,323 |
|
|
2,776,486 |
|
|
2,583,634 |
|
|
2,401,580 |
|
|
2,439,933 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
|
519,732 |
|
|
508,320 |
|
|
493,807 |
|
|
451,958 |
|
|
444,736 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
517,041 |
|
|
500,649 |
|
|
459,380 |
|
|
423,304 |
|
|
408,005 |
|
Retail |
|
|
590,320 |
|
|
602,378 |
|
|
607,837 |
|
|
524,415 |
|
|
522,783 |
|
Public funds |
|
|
65,610 |
|
|
89,043 |
|
|
106,733 |
|
|
89,221 |
|
|
92,382 |
|
Total Money Market |
|
1,172,971 |
|
|
1,192,070 |
|
|
1,173,950 |
|
|
1,036,940 |
|
|
1,023,170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokered time certificates |
|
268,998 |
|
|
367,841 |
|
|
220,594 |
|
|
192,182 |
|
|
228,602 |
|
Other time certificates |
|
785,185 |
|
|
760,861 |
|
|
705,255 |
|
|
560,850 |
|
|
560,999 |
|
|
|
1,054,183 |
|
|
1,128,702 |
|
|
925,849 |
|
|
753,032 |
|
|
789,601 |
|
Total Deposits |
|
$ |
5,541,209 |
|
|
$ |
5,605,578 |
|
|
$ |
5,177,240 |
|
|
$ |
4,643,510 |
|
|
$ |
4,697,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer sweep accounts |
|
$ |
82,015 |
|
|
$ |
148,005 |
|
|
$ |
214,323 |
|
|
$ |
189,035 |
|
|
$ |
200,050 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Explanation of Certain Unaudited Non-GAAP Financial
Measures
This presentation contains financial information determined by
methods other than Generally Accepted Accounting Principles
(“GAAP”). Management uses these non-GAAP financial measures in its
analysis of the Company’s performance and believes these
presentations provide useful supplemental information, and a
clearer understanding of the Company’s performance. The Company
believes the non-GAAP measures enhance investors’ understanding of
the Company’s business and performance and if not provided would be
requested by the investor community. These measures are also useful
in understanding performance trends and facilitate comparisons with
the performance of other financial institutions. The limitations
associated with operating measures are the risk that persons might
disagree as to the appropriateness of items comprising these
measures and that different companies might define or calculate
these measures differently. The Company provides reconciliations
between GAAP and these non-GAAP measures. These disclosures should
not be considered an alternative to GAAP.
GAAP TO NON-GAAP RECONCILIATION |
|
(Unaudited) |
|
|
|
|
|
|
SEACOAST
BANKING CORPORATION OF FLORIDA AND
SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Trends |
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands, except per share data) |
2Q'19 |
|
1Q'19 |
|
4Q'18 |
|
3Q'18 |
|
2Q'18 |
|
2Q'19 |
|
2Q'18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
$ |
23,253 |
|
|
$ |
22,705 |
|
|
$ |
15,962 |
|
|
$ |
16,322 |
|
|
$ |
16,964 |
|
|
$ |
45,958 |
|
|
$ |
34,991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest income |
13,577 |
|
|
12,836 |
|
|
12,714 |
|
|
12,291 |
|
|
12,721 |
|
|
26,413 |
|
|
25,017 |
|
Securities losses, net |
466 |
|
|
9 |
|
|
425 |
|
|
48 |
|
|
48 |
|
|
475 |
|
|
150 |
|
BOLI benefits on death
(included in other income) |
— |
|
|
— |
|
|
(280 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total Adjustments to Noninterest Income |
466 |
|
|
9 |
|
|
145 |
|
|
48 |
|
|
48 |
|
|
475 |
|
|
150 |
|
Total Adjusted Noninterest Income |
14,043 |
|
|
12,845 |
|
|
12,859 |
|
|
12,339 |
|
|
12,769 |
|
|
26,888 |
|
|
25,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
41,000 |
|
|
43,099 |
|
|
49,464 |
|
|
37,399 |
|
|
38,246 |
|
|
84,099 |
|
|
75,410 |
|
Merger related charges |
— |
|
|
(335 |
) |
|
(8,034 |
) |
|
(482 |
) |
|
(695 |
) |
|
(335 |
) |
|
(1,165 |
) |
Amortization of
intangibles |
(1,456 |
) |
|
(1,458 |
) |
|
(1,303 |
) |
|
(1,004 |
) |
|
(1,004 |
) |
|
(2,914 |
) |
|
(1,993 |
) |
Branch reductions and other
expense initiatives |
(1,517 |
) |
|
(208 |
) |
|
(587 |
) |
|
— |
|
|
— |
|
|
(1,725 |
) |
|
— |
|
Total Adjustments to Noninterest Expense |
(2,973 |
) |
|
(2,001 |
) |
|
(9,924 |
) |
|
(1,486 |
) |
|
(1,699 |
) |
|
(4,974 |
) |
|
(3,158 |
) |
Total Adjusted Noninterest Expense |
38,027 |
|
|
41,098 |
|
|
39,540 |
|
|
35,913 |
|
|
36,547 |
|
|
79,125 |
|
|
72,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Taxes |
6,909 |
|
|
6,409 |
|
|
4,930 |
|
|
4,358 |
|
|
5,189 |
|
|
13,318 |
|
|
10,971 |
|
Tax effect of adjustments |
874 |
|
|
510 |
|
|
2,623 |
|
|
230 |
|
|
443 |
|
|
1,384 |
|
|
981 |
|
Taxes and tax penalties on
acquisition-related BOLI redemption |
— |
|
|
— |
|
|
(485 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Effect of change in corporate
tax rate |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(248 |
) |
Total Adjustments to Income Taxes |
874 |
|
|
510 |
|
|
2,138 |
|
|
230 |
|
|
443 |
|
|
1,384 |
|
|
733 |
|
Adjusted Income Taxes |
7,783 |
|
|
6,919 |
|
|
7,068 |
|
|
4,588 |
|
|
5,632 |
|
|
14,702 |
|
|
11,704 |
|
Adjusted Net Income |
$ |
25,818 |
|
|
$ |
24,205 |
|
|
$ |
23,893 |
|
|
$ |
17,626 |
|
|
$ |
18,268 |
|
|
$ |
50,023 |
|
|
$ |
37,566 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted share, as
reported |
$ |
0.45 |
|
|
$ |
0.44 |
|
|
$ |
0.31 |
|
|
$ |
0.34 |
|
|
$ |
0.35 |
|
|
$ |
0.88 |
|
|
$ |
0.73 |
|
Adjusted Earnings per
Diluted Share |
0.50 |
|
|
0.47 |
|
|
0.47 |
|
|
0.37 |
|
|
0.38 |
|
|
0.96 |
|
|
0.79 |
|
Average diluted shares
outstanding |
51,952 |
|
|
52,039 |
|
|
51,237 |
|
|
48,029 |
|
|
47,974 |
|
|
51,998 |
|
|
47,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Noninterest
Expense |
$ |
38,027 |
|
|
$ |
41,098 |
|
|
$ |
39,540 |
|
|
$ |
35,913 |
|
|
$ |
36,547 |
|
|
$ |
79,125 |
|
|
$ |
72,252 |
|
Foreclosed property expense
and net gain/(loss) on sale |
174 |
|
|
40 |
|
|
— |
|
|
137 |
|
|
(405 |
) |
|
214 |
|
|
(597 |
) |
Net Adjusted Noninterest Expense |
$ |
38,201 |
|
|
$ |
41,138 |
|
|
$ |
39,540 |
|
|
$ |
36,050 |
|
|
$ |
36,142 |
|
|
$ |
79,339 |
|
|
$ |
71,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
73,713 |
|
|
$ |
73,610 |
|
|
$ |
72,698 |
|
|
$ |
63,853 |
|
|
$ |
62,928 |
|
|
$ |
147,323 |
|
|
$ |
124,986 |
|
Total Adjustments to
Revenue |
466 |
|
|
9 |
|
|
145 |
|
|
48 |
|
|
48 |
|
|
475 |
|
|
150 |
|
Impact of FTE adjustment |
83 |
|
|
87 |
|
|
116 |
|
|
147 |
|
|
87 |
|
|
170 |
|
|
178 |
|
Adjusted Revenue on a fully taxable equivalent
basis |
$ |
74,262 |
|
|
$ |
73,706 |
|
|
$ |
72,959 |
|
|
$ |
64,048 |
|
|
$ |
63,063 |
|
|
$ |
147,968 |
|
|
$ |
125,314 |
|
Adjusted Efficiency Ratio |
51.44 |
% |
|
55.81 |
% |
|
54.19 |
% |
|
56.29 |
% |
|
57.31 |
% |
|
53.62 |
% |
|
57.18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Assets |
$ |
6,734,994 |
|
|
$ |
6,770,978 |
|
|
$ |
6,589,870 |
|
|
$ |
5,903,327 |
|
|
$ |
5,878,035 |
|
|
$ |
6,752,886 |
|
|
$ |
5,864,934 |
|
Less average goodwill and
intangible assets |
(228,706 |
) |
|
(230,066 |
) |
|
(213,713 |
) |
|
(165,534 |
) |
|
(166,393 |
) |
|
(229,382 |
) |
|
(166,762 |
) |
Average Tangible Assets |
$ |
6,506,288 |
|
|
$ |
6,540,912 |
|
|
$ |
6,376,157 |
|
|
$ |
5,737,793 |
|
|
$ |
5,711,642 |
|
|
$ |
6,523,504 |
|
|
$ |
5,698,172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average Assets
(ROA) |
1.38 |
% |
|
1.36 |
% |
|
0.96 |
% |
|
1.10 |
% |
|
1.16 |
% |
|
1.37 |
% |
|
1.20 |
% |
Impact of removing average intangible assets and related
amortization |
0.12 |
|
|
0.12 |
|
|
0.09 |
|
|
0.08 |
|
|
0.08 |
|
|
0.12 |
|
|
0.09 |
|
Return on Average Tangible Assets (ROTA) |
1.50 |
|
|
1.48 |
|
|
1.05 |
|
|
1.18 |
|
|
1.24 |
|
|
1.49 |
|
|
1.29 |
|
Impact of other adjustments
for Adjusted Net Income |
0.09 |
|
|
0.02 |
|
|
0.44 |
|
|
0.04 |
|
|
0.04 |
|
|
0.06 |
|
|
0.04 |
|
Adjusted Return on Average Tangible Assets |
1.59 |
|
|
1.50 |
|
|
1.49 |
|
|
1.22 |
|
|
1.28 |
|
|
1.55 |
|
|
1.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Shareholders'
Equity |
$ |
911,479 |
|
|
$ |
879,564 |
|
|
$ |
827,759 |
|
|
$ |
728,290 |
|
|
$ |
709,674 |
|
|
$ |
895,610 |
|
|
$ |
702,497 |
|
Less average goodwill and
intangible assets |
(228,706 |
) |
|
(230,066 |
) |
|
(213,713 |
) |
|
(165,534 |
) |
|
(166,393 |
) |
|
(229,382 |
) |
|
(166,762 |
) |
Average Tangible Equity |
$ |
682,773 |
|
|
$ |
649,498 |
|
|
$ |
614,046 |
|
|
$ |
562,756 |
|
|
$ |
543,281 |
|
|
$ |
666,228 |
|
|
$ |
535,735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average
Shareholders' Equity |
10.23 |
% |
|
10.47 |
% |
|
7.65 |
% |
|
8.89 |
% |
|
9.59 |
% |
|
10.35 |
% |
|
10.04 |
% |
Impact of removing average intangible assets and related
amortization |
4.07 |
|
|
4.39 |
|
|
3.29 |
|
|
3.15 |
|
|
3.49 |
|
|
4.22 |
|
|
3.69 |
|
Return on Average Tangible Common Equity
(ROTCE) |
14.30 |
|
|
14.86 |
|
|
10.94 |
|
|
12.04 |
|
|
13.08 |
|
|
14.57 |
|
|
13.73 |
|
Impact of other adjustments
for Adjusted Net Income |
0.87 |
|
|
0.25 |
|
|
4.50 |
|
|
0.39 |
|
|
0.41 |
|
|
0.57 |
|
|
0.41 |
|
Adjusted Return on Average Tangible Common
Equity |
15.17 |
|
|
15.11 |
|
|
15.44 |
|
|
12.43 |
|
|
13.49 |
|
|
15.14 |
|
|
14.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan interest income excluding
accretion on acquired loans |
$ |
58,169 |
|
|
$ |
58,397 |
|
|
$ |
55,470 |
|
|
$ |
46,349 |
|
|
$ |
44,341 |
|
|
$ |
116,568 |
|
|
$ |
87,817 |
|
Accretion on acquired
loans |
4,166 |
|
|
3,938 |
|
|
4,089 |
|
|
2,453 |
|
|
2,208 |
|
|
8,103 |
|
|
4,016 |
|
Loan interest income |
$ |
62,335 |
|
|
$ |
62,335 |
|
|
$ |
59,559 |
|
|
$ |
48,802 |
|
|
$ |
46,549 |
|
|
$ |
124,671 |
|
|
$ |
91,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP TO NON-GAAP RECONCILIATION |
|
(Unaudited) |
|
|
|
|
|
|
SEACOAST
BANKING CORPORATION OF FLORIDA AND
SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Trends |
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands, except per share data) |
2Q'19 |
|
1Q'19 |
|
4Q'18 |
|
3Q'18 |
|
2Q'18 |
|
2Q'19 |
|
2Q'18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on loans excluding
accretion on acquired loans |
4.82 |
% |
|
4.89 |
% |
|
4.77 |
% |
|
4.59 |
% |
|
4.50 |
% |
|
4.86 |
% |
|
4.53 |
% |
Impact of accretion on
acquired loans |
0.34 |
|
|
0.33 |
|
|
0.35 |
|
|
0.24 |
|
|
0.23 |
|
|
0.33 |
|
|
0.21 |
|
Yield on loans |
5.16 |
|
|
5.22 |
|
|
5.12 |
|
|
4.83 |
|
|
4.73 |
|
|
5.19 |
|
|
4.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income excluding
accretion on acquired loans |
$ |
56,053 |
|
|
$ |
56,923 |
|
|
$ |
56,011 |
|
|
$ |
49,256 |
|
|
$ |
48,086 |
|
|
$ |
116,962 |
|
|
$ |
96,131 |
|
Accretion on acquired
loans |
4,166 |
|
|
3,938 |
|
|
4,089 |
|
|
2,453 |
|
|
2,208 |
|
|
4,118 |
|
|
4,016 |
|
Net Interest Income |
$ |
60,219 |
|
|
$ |
60,861 |
|
|
$ |
60,100 |
|
|
$ |
51,709 |
|
|
$ |
50,294 |
|
|
$ |
121,080 |
|
|
$ |
100,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin excluding
accretion on acquired loans |
3.67 |
% |
|
3.76 |
% |
|
3.73 |
% |
|
3.64 |
% |
|
3.60 |
% |
|
3.71 |
% |
|
3.63 |
% |
Impact of accretion on
acquired loans |
0.27 |
|
|
0.26 |
|
|
0.27 |
|
|
0.18 |
|
|
0.17 |
|
|
0.27 |
|
|
0.15 |
|
Net Interest Margin |
3.94 |
|
|
4.02 |
|
|
4.00 |
|
|
3.82 |
|
|
3.77 |
|
|
3.98 |
|
|
3.78 |
|
Charles M. ShafferExecutive Vice PresidentChief Operating
Officer and Chief Financial Officer(772)
221-7003Chuck.Shaffer@seacoastbank.com
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