Net Income Increases 121% Year-Over-Year to $17.0 Million
Record Consumer and Small Business Loan Originations, Record Commercial Pipeline Entering the Third Quarter
STUART, Fla., July 26, 2018 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida (“Seacoast” or “the Company”) (NASDAQ:SBCF) reported net income of $17.0 million, or $0.35 per share for the second quarter of 2018, a 121% or $9.3 million increase year-over-year. Seacoast reported adjusted net income1 of $18.3 million, or $0.38 per share, representing a 44% or $5.6 million increase year-over-year.
For the second quarter 2018, return on average tangible assets was 1.24%, return on average tangible shareholders’ equity was 13.1%, and the efficiency ratio was 58.4%, compared to 1.34%, 14.4% and 57.8%, respectively, in the prior quarter and 0.66%, 7.3%, and 73.9%, respectively, in the second quarter of 2017. Adjusted return on average tangible assets1 was 1.28%, adjusted return on average tangible shareholders’ equity1 was 13.5%, and the adjusted efficiency ratio1 was 57.3%, compared to 1.38%, 14.8%, and 57.1%, respectively, in the prior quarter, and 1.02%, 11.2%, and 61.2%, respectively, in the second quarter of 2017.
Dennis S. Hudson, III, Seacoast’s Chairman and CEO, said “Seacoast’s balanced growth strategy, combining organic growth with value-creating acquisitions, continues to benefit our shareholders. Consumer and small business loan originations reached record levels and we exited the quarter with our commercial loan pipeline at an all-time high. Looking ahead, we expect our total loan growth to accelerate, driven by the combination of a robust pipeline, investments we have made in proprietary commercial banking technologies, and expanding our commercial platform within the Tampa and South Florida markets. During the quarter we announced the acquisition of First Green Bancorp, Inc., which will introduce more than 10,000 new customers in central and south Florida to Seacoast’s innovative banking platforms and deepen our presence in Orlando, Florida’s third-largest metropolitan area. We expect this acquisition to close early in the fourth quarter.”
Charles M. Shaffer, Seacoast’s Chief Financial Officer, said, “We continue to balance a disciplined approach to credit, liquidity, and expense management, while making investments in technology and talent, resulting in an increase in tangible book value per share to $11.67 at period end and positioning us well to deliver the strong performance we outlined in our Vision 2020 plan. With a loan to deposit ratio of 84% and a ratio of tangible common equity to tangible assets of 9.6%, our balance sheet provides us with the resources to prudently fund our organic growth initiatives while continuing to make accretive acquisitions.”
Notable Items Impacting the Second Quarter
Several notable items in aggregate impacted the quarter by approximately $0.05 per share. These include a $0.5 million reduction in accretion of purchase discounts on acquired loans quarter over quarter, and higher prepayments on the nonacquired originated loan portfolio which reduced loan growth by 3%. Additionally, we recognized $1.7 million in net charge-offs and $0.3 million in losses on the sale of other real estate owned during the quarter.
Second Quarter 2018 Financial Highlights
Income Statement
- Net income was $17.0 million, or $0.35 per diluted share, compared to $18.0 million or $0.38 for the prior quarter and $7.7 million or $0.18 for the second quarter of 2017. For the six months ended June 30, 2018, net income was $35.0 million compared to $15.6 million for the six months ended June 30, 2017. Adjusted net income1 was $18.3 million, or $0.38 per diluted share, compared to $19.3 million or $0.40 for the prior quarter and $12.7 million or $0.29 for the second quarter of 2017. For the six months ended June 30, 2018, adjusted net income1 was $37.6 million compared to $22.9 million for the six months ended June 30, 2017.
- Net revenues were $62.9 million, an increase of $0.9 million or 1% compared to the prior quarter, and an increase of $8.3 million or 15% compared to the second quarter of 2017. For the six months ended June 30, 2018, net revenues were $125.0 million, an increase of $22.3 million or 22% compared to the six months ended June 30, 2017. Adjusted revenues1 were $63.0 million, an increase of $0.8 million, or 1%, from the prior quarter and an increase of $8.4 million, or 15% from the second quarter of 2017. For the six months ended June 30, 2018, adjusted revenues1 were $125.1 million, an increase of $22.4 million or 22% compared to the six months ended June 30, 2017.
- Net interest income totaled $50.2 million, an increase of $0.4 million or 1% from the prior quarter and an increase of $6.1 million or 14% from the second quarter of 2017. For the six months ended June 30, 2018, net interest income totaled $100.0 million, an increase of $17.6 million or 21% compared to the six months ended June 30, 2017.
- Net interest margin was 3.77% in the current quarter compared to 3.80% in the prior quarter and 3.84% in the second quarter of 2017. Removing the impact of accretion of purchase discounts on acquired loans the net interest margin was 3.61% in the current quarter, compared to 3.60% in the prior quarter and 3.59% in the second quarter of 2017. Quarter over quarter accretion on purchase discounts on acquired loans declined by $0.5 million, impacting the net interest margin by 4 basis points.
- Noninterest income totaled $12.7 million, an increase of $0.4 million or 4% compared to the prior quarter and an increase of $2.2 million or 21% from the second quarter of 2017. For the six months ended June 30, 2018, noninterest income totaled $25.0 million, 23% higher than the six months ended June 30, 2017. Adjusted noninterest income1 totaled $12.8 million for the quarter, an increase of $0.4 million or 3% compared to prior quarter and an increase of $2.3 million or 22% from the second quarter of 2017. Following on the significant progress we made in the first quarter, second quarter results reflected growth across our businesses resulting in improvements in nearly every category. We continue to benefit from the investments we have made in Wealth Management and SBA lending.
- The provision for loan losses was $2.5 million, compared to $1.1 million in the prior quarter and $1.4 million in the second quarter of 2017, reflecting the effect of portfolio growth as well as $1.7 million in net charge-offs in the current quarter.
- Noninterest expense was $38.2 million compared to $37.2 million in the prior quarter and $41.6 million in the second quarter of 2017. For the six months ended June 30, 2018, noninterest expense was $75.4 million compared to $76.4 million for the six months ended June 30, 2017. In the current quarter, noninterest expense included $0.7 million in merger related expenses. Adjusted noninterest expense1 was $36.5 million compared to $35.7 million in the prior quarter, and $33.8 million in the second quarter of 2017. For the six months ended June 30, 2018, adjusted noninterest expense1 was $72.3 million compared to $64.8 million for the six months ended June 30, 2017. The increase in noninterest expense quarter over quarter was the result of continued investments in both talent and technology in the organization positioning Seacoast for continued robust profitability. We acquired two commercial banking team leaders, four commercial bankers, and made investments in talent to support scaling the organization prudently. During the second quarter, we granted 191,000 restricted shares, along with performance awards for up to an additional 356,000 shares upon meeting certain performance criteria. This investment for growth was granted deep into the organization, with the goal of providing meaningful value to our associates for achieving our performance objectives.
- Seacoast recorded $5.2 million in income tax expense in the current quarter, compared to $5.8 million in the prior quarter and $3.9 million in the second quarter of 2017. The effective tax rate of 23.4% in the current quarter reflects the positive impact of the new lower corporate tax rate. Prior quarter included the effect of an additional $0.3 million write down of deferred tax assets arising from measurement period adjustments on a prior year bank acquisition. The write down of those assets in the prior quarter increased the effective tax rate by 1.1% to 24.3%.
- Year to date adjusted revenues1 increased 22% compared to prior year while adjusted noninterest expense1 increased 12%, providing 10% operating leverage.
- The efficiency ratio was 58.4% compared to 57.8% in the prior quarter and 73.9% in the second quarter of 2017. The adjusted efficiency ratio1 was 57.3% compared to 57.1% in the prior quarter and 61.2% in the second quarter of 2017.
Balance Sheet
- At June 30, 2018, the Company had total assets of $5.9 billion and total shareholders' equity of $716 million. Book value per share was $15.18 and tangible book value per share was $11.67, compared to $14.94 and $11.39, respectively, at March 31, 2018 and $13.29 and $10.55, respectively, at June 30, 2017.
- Debt Securities totaled $1.3 billion at June 30, 2018, a decrease of $47 million compared to prior quarter and a decrease of $70 million from June 30, 2017. Given the current interest rate environment, the securities portfolio is being used as a liquidity source to fund loan growth.
- Net loans totaled $3.9 billion at June 30, 2018, an increase of $76 million compared to prior quarter or 8% annualized in the current quarter, and an increase of $641 million or 19% from June 30, 2017. Excluding the impact of two acquisitions in the fourth quarter of 2017, loans increased $237 million or 7% from June 30, 2017.
- During the current quarter, commercial originations were $140.4 million, consumer and small business originations for the quarter were a record $104.9 million and retained residential loans were $75.0 million.
- Loan growth for the quarter was impacted by higher loan prepayments when compared to the prior quarter, impacting annualized loan growth by 3%.
- We continue to prudently manage commercial real estate exposure. Construction and land development and commercial real estate loans remain well below regulatory guidance at 59% and 203% of total risk based capital, respectively.
- Pipelines (loans in underwriting and approval or approved and not yet closed) are at a record high for second quarter. At June 30, 2018, total pipelines were $311.6 million, an increase of 28% over the prior quarter and 16% compared to prior year.
- Commercial pipelines were $194.9 million, an increase of $72.2 million, or 59%, from prior quarter.
- Consumer and small business pipelines were $52.9 million, an increase of $2.6 million, or 5%, compared to the prior quarter.
- Residential pipelines were $63.7 million, decreasing by $7.0 million, or 10%, from prior quarter.
- Commercial pipelines were $194.9 million, an increase of $72.2 million, or 59%, from prior quarter.
- Total deposits were $4.7 billion as of June 30, 2018, a decrease of $22 million from prior quarter and an increase of $722 million, or 18%, from June 30, 2017. The quarter over quarter decline in deposit outstandings reflects a normal impact of the summer season in Florida.
- Year-over-year, interest bearing deposits (interest bearing demand, savings and money market deposits) increased $271 million, or 12%, to $2.4 billion, noninterest bearing demand deposits increased $155 million, or 12%, to $1.5 billion, and CDs increased $295 million, or 60%, to $790 million.
- Excluding acquired deposits, noninterest bearing deposits increased 4% while total deposits increased 5% compared to June 30, 2017.
- The Company’s balance sheet continues to be primarily core deposit funded. Core customer funding was $4.1 billion at June 30, 2018, compared to $4.1 billion at March 31, 2018 and $3.6 billion at June 30, 2017.
- Overall cost of deposits remains attractive at 39 basis points.
- Year-over-year, interest bearing deposits (interest bearing demand, savings and money market deposits) increased $271 million, or 12%, to $2.4 billion, noninterest bearing demand deposits increased $155 million, or 12%, to $1.5 billion, and CDs increased $295 million, or 60%, to $790 million.
- Second quarter return on average tangible assets (ROTA) was 1.24%, compared to 1.34% in the prior quarter and 0.66% in the second quarter of 2017. Adjusted ROTA1 was 1.28% compared to 1.38% in the prior quarter and 1.02% in the second quarter of 2017.
Capital
- Second quarter return on average tangible common equity (ROTCE) was 13.08%, compared to 14.41% in the prior quarter and 7.25% in the second quarter of 2017. Adjusted ROTCE1 was 13.49% compared to 14.82% in the prior quarter and 11.22% in the second quarter of 2017.
- The common equity tier 1 capital ratio (CET1) was 12.9%, total capital ratio was 15.2% and the tier 1 leverage ratio was 11.0% at June 30, 2018.
- Tangible common equity to tangible assets was 9.56% at June 30, 2018, compared to 9.33% at March 31, 2018, and 8.88% at June 30, 2017.
Asset Quality
- Nonperforming loans to total loans outstanding was 0.66% at June 30, 2018, 0.50% at March 31, 2018, and 0.52% at June 30, 2017. Nonperforming loans increased $7.0 million, the result of a transfer of a single credit to nonaccrual status.
- Nonperforming assets to total assets was 0.58% at June 30, 2018, 0.50% at March 31, 2018 and 0.49% at June 30, 2017. The $34.6 million in nonperforming assets includes $3.1 million in closed branch properties held as REO.
- The ratio of allowance for loan losses to total loans was 0.73% at June 30, 2018, 0.72% at March 31, 2018, and 0.78% at June 30, 2017.
- The ratio of allowance for loan losses to non-acquired loans was 0.88% at June 30, 2018, 0.90% at March 31, 2018, and 0.95% at June 30, 2017.
- Net charge-offs were $1.7 million or 0.17% for the current quarter compared to near zero in the prior quarter. Net charge-offs for the four most recent quarters averaged 0.09%.
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures”
| FINANCIAL HIGHLIGHTS | (Unaudited) | |||||||||||||||||||
| (Amounts in thousands except per share data) | ||||||||||||||||||||
| Quarterly Trends | ||||||||||||||||||||
| 2Q'18 | 1Q'18 | 4Q'17 | 3Q'17 | 2Q'17 | ||||||||||||||||
| Selected Balance Sheet Data: | ||||||||||||||||||||
| Total Assets | $ | 5,922,681 | $ | 5,903,101 | $ | 5,810,129 | $ | 5,340,413 | $ | 5,281,295 | ||||||||||
| Gross Loans | 3,974,016 | 3,897,125 | 3,817,377 | 3,384,991 | 3,330,075 | |||||||||||||||
| Total Deposits | 4,697,440 | 4,719,543 | 4,592,720 | 4,112,600 | 3,975,458 | |||||||||||||||
| Performance Measures: | ||||||||||||||||||||
| Net Income | $ | 16,964 | $ | 18,027 | $ | 13,047 | $ | 14,216 | $ | 7,676 | ||||||||||
| Net Interest Margin | 3.77 | % | 3.80 | % | 3.71 | % | 3.74 | % | 3.84 | % | ||||||||||
| Average Diluted Shares Outstanding | 47,974 | 47,688 | 46,473 | 43,792 | 43,556 | |||||||||||||||
| Diluted Earnings Per Share (EPS) | $ | 0.35 | $ | 0.38 | $ | 0.28 | $ | 0.32 | $ | 0.18 | ||||||||||
| Return on (annualized): | ||||||||||||||||||||
| Average Assets (ROA) | 1.16 | % | 1.25 | % | 0.91 | % | 1.06 | % | 0.61 | % | ||||||||||
| Average Tangible Common Equity (ROTCE) | 13.08 | 14.41 | 10.69 | 12.45 | 7.25 | |||||||||||||||
| Efficiency Ratio | 58.41 | 57.80 | 63.95 | 58.93 | 73.90 | |||||||||||||||
| Adjusted Operating Measures1: | ||||||||||||||||||||
| Adjusted Net Income | $ | 18,268 | $ | 19,298 | $ | 17,261 | $ | 15,145 | $ | 12,665 | ||||||||||
| Adjusted Diluted EPS | 0.38 | 0.40 | 0.37 | 0.35 | 0.29 | |||||||||||||||
| Adjusted ROTA | 1.28 | % | 1.38 | % | 1.23 | % | 1.16 | % | 1.02 | % | ||||||||||
| Adjusted ROTCE | 13.49 | 14.82 | 13.49 | 12.80 | 11.22 | |||||||||||||||
| Adjusted Efficiency Ratio | 57.31 | 57.05 | 52.55 | 57.69 | 61.20 | |||||||||||||||
| Adjusted Noninterest Expenses as a | ||||||||||||||||||||
| Percent of Average Tangible Assets | 2.57 | 2.55 | 2.24 | 2.50 | 2.73 | |||||||||||||||
| Other Data: | ||||||||||||||||||||
| Market capitalization2 | $ | 1,489,411 | $ | 1,243,644 | $ | 1,182,796 | $ | 1,039,506 | $ | 1,047,361 | ||||||||||
| Full-time equivalent employees | 826 | 814 | 805 | 762 | 759 | |||||||||||||||
| Number of ATMs | 87 | 86 | 85 | 76 | 76 | |||||||||||||||
| Full service banking offices | 49 | 49 | 51 | 45 | 45 | |||||||||||||||
| Registered online users | 92,107 | 91,636 | 83,881 | 78,880 | 75,394 | |||||||||||||||
| Registered mobile devices | 69,038 | 65,336 | 62,516 | 58,032 | 55,013 | |||||||||||||||
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures”
2Common shares outstanding multiplied by closing bid price on last day of each period
Acquisition of First Green Bancorp
On June 11, 2018 we announced the acquisition of First Green Bancorp, Inc., headquartered in Orlando, Florida, which we expect to close early in the fourth quarter. Pursuant to the terms of the merger agreement, First Green Bancorp, Inc. will be merged into Seacoast Banking Corporation, and First Green Bank will be merged into Seacoast Bank. Organized in 2009, First Green Bank has deposits of approximately $629 million and loans of $629 million. First Green operates seven branches in the Orlando, Daytona and Ft. Lauderdale markets. We expect the acquisition to be more than 10% accretive to earnings per share in 2019 excluding one-time transaction costs, and have a tangible book value earn-back of less than one year using the cross over method. The transaction is expected to provide an internal rate of return over 25%.
Vision 2020
We remain confident in our ability to achieve our Vision 2020 targets announced early last year. We continue to monitor the impact of the Tax Cuts and Jobs Act of 2017 and believe the impact of this important legislation will more fully materialize in the marketplace moving forward. Additionally, we announced the acquisition of First Green Bancorp, Inc., which is expected to close early in the fourth quarter. We believe both the Tax Cuts and Jobs Act of 2017 and the acquisition of First Green Bancorp, Inc. reinforce our ability to achieve these objectives.
| Vision 2020 Targets | |
| Return on Tangible Assets | 1.30%+ |
| Return on Tangible Common Equity | 16%+ |
| Efficiency Ratio | Below 50% |
Second Quarter Strategic Highlights
Modernizing How We Sell
- Seacoast Wealth Management added $75.1 million in new fee-based assets under management year to date, 65% of which were the direct result of referrals from the commercial, small business, and retail teams. The resulting trust and brokerage revenues continue to rise, with industry leading products including digital tools, and a growing sales and support team throughout the footprint.
- We launched our proprietary Commercial Banking Portal in June, providing customized banker dashboards with key indicators and alerts. With the Portal, our bankers have real-time updates on how their customers use our products and services, allowing them to provide more meaningful guidance and advice. We believe this tool will provide our Bankers the ability to significantly expand relationships moving forward.
- Other technology investments during the quarter included enhancements to our proprietary Connections portal, which provides our teams with greater access and insight to customer service and sales opportunities to better meet customer needs.
Lowering Our Cost to Serve
- We continue to implement footprint-related expense reduction strategies, consolidating three banking center locations in the last twelve months. Our upcoming First Green acquisition further provides opportunity to reposition our footprint, as six out of seven First Green branches are located within three miles of a Seacoast branch.
- An automated lending platform, currently in development with strategic technology partners, will create efficiencies by digitizing the onboarding journey with automation of underwriting activities and application of credit policies.
- We are in early project planning to fully overhaul our commercial lending process, bringing in new technology that will allow for process automation and greater results from our bankers.
Driving Improvements in How Our Business Operates
- Our 100% Florida-staffed call center provides 24/7 customer service, and in the second half of the year will implement a fully modernized software platform providing expanded self-serve options with additional security features.
- Partnering with specialized providers, we have created greater scalability in mortgage fulfillment while maintaining cycle times.
Scaling and Evolving Our Culture
- During the quarter we acquired new seasoned commercial banking leadership in the markets of Broward County and Tampa and added four new bankers to our team. Our goal is to add an additional ten commercial bankers before year end.
OTHER INFORMATION
Conference Call Information
Seacoast will host a conference call on Friday, July 27, 2018 at 10:00 a.m. (Eastern Time) to discuss the earnings results. Investors may call in (toll-free) by dialing (888) 466-9845 (passcode: 6353 188). 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 July 27, 2018 by dialing (888) 843-7419 and using passcode: 6353 188#.
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 July 27, an archived version of the webcast can be accessed from this same subsection of the website. The archived webcast will be available for one year.
About Seacoast Banking Corporation of Florida (NASDAQ:SBCF)
Seacoast Banking Corporation of Florida is one of the largest community banks headquartered in Florida with approximately $5.9 billion in assets and $4.7 billion in deposits as of June 30, 2018. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, 49 traditional branches of its locally-branded wholly-owned subsidiary bank, Seacoast Bank, and seven commercial banking centers. Offices stretch from Ft. Lauderdale, Boca Raton and West Palm Beach north through the Daytona Beach area, into Orlando and Central Florida and the adjacent Tampa market, and west to Okeechobee and surrounding counties. More information about the Company is available at http://www.Seacoastbanking.com.
Cautionary Notice Regarding Forward-Looking 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, 2017, under "Special Cautionary Notice Regarding Forward-looking Statements" and "Risk Factors", and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov.
Charles M. Shaffer
Executive Vice President
Chief Financial Officer
(772) 221-7003
Chuck.Shaffer@seacoastbank.com
| FINANCIAL HIGHLIGHTS | (Unaudited) | ||||||||||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||||||||
| (Dollars in thousands, except per share data) | Quarterly Trends | Six Months Ended | |||||||||||||||||||
| 2Q'18 | 1Q'18 | 4Q'17 | 3Q'17 | 2Q'17 | 2Q'18 | 2Q'17 | |||||||||||||||
| Summary of Earnings | |||||||||||||||||||||
| Net income | $ | 16,964 | $ | 18,027 | $ | 13,047 | $ | 14,216 | $ | 7,676 | $ | 34,991 | $ | 15,602 | |||||||
| Adjusted net income (1) | 18,268 | 19,298 | 17,261 | 15,145 | 12,665 | 37,566 | 22,935 | ||||||||||||||
| Net interest income (2) | 50,294 | 49,853 | 48,402 | 45,903 | 44,320 | 100,147 | 82,697 | ||||||||||||||
| Net interest margin (2), (3) | 3.77 | % | 3.80 | % | 3.71 | % | 3.74 | % | 3.84 | % | 3.78 | % | 3.74 | % | |||||||
| Performance Ratios | |||||||||||||||||||||
| Return on average assets-GAAP basis (3) | 1.16 | % | 1.25 | % | 0.91 | % | 1.06 | % | 0.61 | % | 1.20 | % | 0.64 | % | |||||||
| Return on average tangible assets (3),(4) | 1.24 | 1.34 | 0.97 | 1.12 | 0.66 | 1.29 | 0.70 | ||||||||||||||
| Adjusted return on average tangible assets (1), (3), (4) | 1.28 | 1.38 | 1.23 | 1.16 | 1.02 | 1.33 | 0.96 | ||||||||||||||
| Return on average shareholders' equity-GAAP basis (3) | 9.59 | 10.52 | 7.87 | 9.59 | 5.43 | 10.04 | 6.08 | ||||||||||||||
| Return on average tangible shareholders' equity-GAAP basis (3),(4) | 13.08 | 14.41 | 10.69 | 12.45 | 7.25 | 13.73 | 7.94 | ||||||||||||||
| Adjusted return on average tangible common equity (1), (3), (4) | 13.49 | 14.82 | 13.49 | 12.80 | 11.22 | 14.14 | 11.00 | ||||||||||||||
| Efficiency ratio (5) | 58.41 | 57.80 | 63.95 | 58.93 | 73.90 | 58.11 | 72.58 | ||||||||||||||
| Adjusted efficiency ratio (1) | 57.31 | 57.05 | 52.55 | 57.69 | 61.20 | 57.18 | 62.82 | ||||||||||||||
| Noninterest income to total revenue | 20.28 | 19.95 | 35.49 | 20.06 | 19.16 | 20.11 | 19.84 | ||||||||||||||
| Tangible common equity to tangible assets | 9.56 | 9.33 | 9.27 | 9.13 | 8.88 | 9.56 | 8.88 | ||||||||||||||
| Loan-to-deposit ratio | 83.51 | 84.10 | 82.54 | 85.18 | 83.48 | 83.51 | 83.48 | ||||||||||||||
| Per Share Data | |||||||||||||||||||||
| Net income diluted-GAAP basis | $ | 0.35 | $ | 0.38 | $ | 0.28 | $ | 0.32 | $ | 0.18 | $ | 0.73 | $ | 0.38 | |||||||
| Net income basic-GAAP basis | 0.36 | 0.38 | 0.29 | 0.33 | 0.18 | 0.74 | 0.38 | ||||||||||||||
| Adjusted earnings (1) | 0.38 | 0.40 | 0.37 | 0.35 | 0.29 | 0.79 | 0.55 | ||||||||||||||
| Book value per share common | 15.18 | 14.94 | 14.70 | 13.66 | 13.29 | 15.18 | 13.29 | ||||||||||||||
| Tangible book value per share | 11.67 | 11.39 | 11.15 | 10.95 | 10.55 | 11.67 | 10.55 | ||||||||||||||
| Cash dividends declared | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||
| (1) Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures." | |||||||||||||||||||||
| (2) Calculated on a fully taxable equivalent basis using amortized cost. | |||||||||||||||||||||
| (3) These ratios are stated on an annualized basis and are not necessarily indicative of future periods. | |||||||||||||||||||||
| (4) The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets. | |||||||||||||||||||||
| (5) Defined as (noninterest expense less amortization of intangibles and gains, losses, and expenses on foreclosed properties) divided by net operating revenue(net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains). | |||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | (Unaudited) | |||||||||||||||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | ||||||||||||||||||||||||||
| Quarterly Trends | YTD | |||||||||||||||||||||||||
| (Dollars in thousands, except share and per share data) | 2Q'18 | 1Q'18 | 4Q'17 | 3Q'17 | 2Q'17 | 2Q'18 | 2Q'17 | |||||||||||||||||||
| Interest on securities: | ||||||||||||||||||||||||||
| Taxable | $ | 9,389 | $ | 9,361 | $ | 9,153 | $ | 8,823 | $ | 8,379 | $ | 18,750 | $ | 16,466 | ||||||||||||
| Nontaxable | 216 | 243 | 231 | 189 | 206 | 459 | 493 | |||||||||||||||||||
| Interest and fees on loans | 46,519 | 45,257 | 43,322 | 40,403 | 38,209 | 91,776 | 70,100 | |||||||||||||||||||
| Interest on federal funds sold and other investments | 585 | 616 | 638 | 664 | 604 | 1,201 | 1,114 | |||||||||||||||||||
| Total Interest Income | 56,709 | 55,477 | 53,344 | 50,079 | 47,398 | 112,186 | 88,173 | |||||||||||||||||||
| Interest on deposits | 1,988 | 1,538 | 1,246 | 930 | 854 | 3,526 | 1,478 | |||||||||||||||||||
| Interest on time certificates | 2,629 | 2,179 | 2,032 | 1,266 | 814 | 4,808 | 1,380 | |||||||||||||||||||
| Interest on borrowed money | 1,885 | 1,998 | 1,840 | 2,134 | 1,574 | 3,883 | 2,994 | |||||||||||||||||||
| Total Interest Expense | 6,502 | 5,715 | 5,118 | 4,330 | 3,242 | 12,217 | 5,852 | |||||||||||||||||||
| Net Interest Income | 50,207 | 49,762 | 48,226 | 45,749 | 44,156 | 99,969 | 82,321 | |||||||||||||||||||
| Provision for loan losses | 2,529 | 1,085 | 2,263 | 680 | 1,401 | 3,614 | 2,705 | |||||||||||||||||||
| Net Interest Income After Provision for Loan Losses | 47,678 | 48,677 | 45,963 | 45,069 | 42,755 | 96,355 | 79,616 | |||||||||||||||||||
| Noninterest income: | ||||||||||||||||||||||||||
| Service charges on deposit accounts | 2,674 | 2,672 | 2,566 | 2,626 | 2,435 | 5,346 | 4,857 | |||||||||||||||||||
| Trust fees | 1,039 | 1,021 | 941 | 967 | 917 | 2,060 | 1,797 | |||||||||||||||||||
| Mortgage banking fees | 1,336 | 1,402 | 1,487 | 2,138 | 1,272 | 2,738 | 2,824 | |||||||||||||||||||
| Brokerage commissions and fees | 461 | 359 | 273 | 351 | 351 | 820 | 728 | |||||||||||||||||||
| Marine finance fees | 446 | 573 | 313 | 137 | 326 | 1,019 | 460 | |||||||||||||||||||
| Interchange income | 3,076 | 2,942 | 2,836 | 2,582 | 2,671 | 6,018 | 5,419 | |||||||||||||||||||
| BOLI income | 1,066 | 1,056 | 1,100 | 836 | 757 | 2,122 | 1,490 | |||||||||||||||||||
| Other | 2,671 | 2,373 | 1,861 | 1,844 | 1,738 | 5,044 | 2,797 | |||||||||||||||||||
| 12,769 | 12,398 | 11,377 | 11,481 | 10,467 | 25,167 | 20,372 | ||||||||||||||||||||
| Gain on sale of VISA stock | 0 | 0 | 15,153 | 0 | 0 | 0 | 0 | |||||||||||||||||||
| Securities gains/(losses), net | (48 | ) | (102 | ) | 112 | (47 | ) | 21 | (150 | ) | 21 | |||||||||||||||
| Total Noninterest Income | 12,721 | 12,296 | 26,642 | 11,434 | 10,488 | 25,017 | 20,393 | |||||||||||||||||||
| Noninterest expenses: | ||||||||||||||||||||||||||
| Salaries and wages | 16,429 | 15,381 | 16,321 | 15,627 | 18,375 | 31,810 | 33,744 | |||||||||||||||||||
| Employee benefits | 3,034 | 3,081 | 2,812 | 2,917 | 2,935 | 6,115 | 6,003 | |||||||||||||||||||
| Outsourced data processing costs | 3,393 | 3,679 | 4,160 | 3,231 | 3,456 | 7,072 | 6,725 | |||||||||||||||||||
| Telephone / data lines | 643 | 612 | 538 | 573 | 648 | 1,255 | 1,180 | |||||||||||||||||||
| Occupancy | 3,316 | 3,117 | 3,265 | 2,447 | 4,421 | 6,433 | 7,578 | |||||||||||||||||||
| Furniture and equipment | 1,468 | 1,457 | 1,806 | 1,191 | 1,679 | 2,925 | 3,070 | |||||||||||||||||||
| Marketing | 1,344 | 1,252 | 1,490 | 1,298 | 1,074 | 2,596 | 1,996 | |||||||||||||||||||
| Legal and professional fees | 2,301 | 1,973 | 3,054 | 2,560 | 3,276 | 4,274 | 5,408 | |||||||||||||||||||
| FDIC assessments | 595 | 598 | 558 | 548 | 650 | 1,193 | 1,220 | |||||||||||||||||||
| Amortization of intangibles | 1,004 | 989 | 964 | 839 | 839 | 1,993 | 1,558 | |||||||||||||||||||
| Foreclosed property expense and net (gain)/loss on sale | 405 | 192 | (7 | ) | (296 | ) | 297 | 597 | 4 | |||||||||||||||||
| Other | 4,314 | 4,833 | 4,223 | 3,427 | 3,975 | 9,147 | 7,885 | |||||||||||||||||||
| Total Noninterest Expenses | 38,246 | 37,164 | 39,184 | 34,361 | 41,625 | 75,410 | 76,371 | |||||||||||||||||||
| Income Before Income Taxes | 22,153 | 23,809 | 33,421 | 22,142 | 11,618 | 45,962 | 23,638 | |||||||||||||||||||
| Income taxes | 5,189 | 5,782 | 20,374 | 7,926 | 3,942 | 10,971 | 8,036 | |||||||||||||||||||
| Net Income | $ | 16,964 | $ | 18,027 | $ | 13,047 | $ | 14,216 | $ | 7,676 | $ | 34,991 | $ | 15,602 | ||||||||||||
| Per share of common stock: | ||||||||||||||||||||||||||
| Net income diluted | $ | 0.35 | $ | 0.38 | $ | 0.28 | $ | 0.32 | $ | 0.18 | $ | 0.73 | $ | 0.38 | ||||||||||||
| Net income basic | 0.36 | 0.38 | 0.29 | 0.33 | 0.18 | 0.74 | 0.38 | |||||||||||||||||||
| Cash dividends declared | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||
| Average diluted shares outstanding | 47,974,118 | 47,688,388 | 46,472,538 | 43,792,108 | 43,556,285 | 47,827,646 | 41,538,769 | |||||||||||||||||||
| Average basic shares outstanding | 47,164,909 | 46,951,829 | 45,541,099 | 43,151,248 | 42,841,152 | 47,058,958 | 40,851,273 | |||||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | (Unaudited) | ||||||||||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||||
| (Dollars in thousands, except share data) | 2018 | 2018 | 2017 | 2017 | 2017 | ||||||||||||||||
| Assets | |||||||||||||||||||||
| Cash and due from banks | $ | 123,927 | $ | 129,065 | $ | 104,039 | $ | 114,621 | $ | 88,133 | |||||||||||
| Interest bearing deposits with other banks | 7,594 | 6,794 | 5,465 | 10,657 | 20,064 | ||||||||||||||||
| Total Cash and Cash Equivalents | 131,521 | 135,859 | 109,504 | 125,278 | 108,197 | ||||||||||||||||
| Time deposits with other banks | 10,562 | 12,553 | 12,553 | 14,591 | 16,426 | ||||||||||||||||
| Debt Securities: | |||||||||||||||||||||
| Available for sale (at fair value) | 954,906 | 982,958 | 949,460 | 990,299 | 1,010,244 | ||||||||||||||||
| Held to maturity (at amortized cost) | 382,137 | 400,647 | 416,863 | 374,773 | 397,096 | ||||||||||||||||
| Total Debt Securities | 1,337,043 | 1,383,605 | 1,366,323 | 1,365,072 | 1,407,340 | ||||||||||||||||
| Loans held for sale | 14,707 | 20,887 | 24,306 | 29,447 | 22,262 | ||||||||||||||||
| Loans | 3,974,016 | 3,897,125 | 3,817,377 | 3,384,991 | 3,330,075 | ||||||||||||||||
| Less: Allowance for loan losses | (28,924 | ) | (28,118 | ) | (27,122 | ) | (26,232 | ) | (26,000 | ) | |||||||||||
| Net Loans | 3,945,092 | 3,869,007 | 3,790,255 | 3,358,759 | 3,304,075 | ||||||||||||||||
| Bank premises and equipment, net | 63,991 | 64,577 | 66,883 | 57,092 | 56,765 | ||||||||||||||||
| Other real estate owned | 8,417 | 10,288 | 7,640 | 7,142 | 8,497 | ||||||||||||||||
| Goodwill | 148,555 | 148,555 | 147,578 | 101,747 | 101,739 | ||||||||||||||||
| Other intangible assets, net | 17,319 | 18,246 | 19,099 | 16,102 | 16,941 | ||||||||||||||||
| Bank owned life insurance | 121,602 | 120,654 | 123,981 | 118,762 | 88,003 | ||||||||||||||||
| Net deferred tax assets | 26,021 | 24,427 | 25,417 | 43,951 | 52,195 | ||||||||||||||||
| Other assets | 97,851 | 94,443 | 116,590 | 102,356 | 98,855 | ||||||||||||||||
| Total Assets | $ | 5,922,681 | $ | 5,903,101 | $ | 5,810,129 | $ | 5,340,299 | $ | 5,281,295 | |||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||||
| Liabilities | |||||||||||||||||||||
| Deposits | |||||||||||||||||||||
| Noninterest demand | $ | 1,463,652 | $ | 1,488,261 | $ | 1,400,227 | $ | 1,284,118 | $ | 1,308,458 | |||||||||||
| Interest-bearing demand | 976,281 | 1,015,054 | 1,050,755 | 935,097 | 934,861 | ||||||||||||||||
| Savings | 444,736 | 437,878 | 434,346 | 379,499 | 376,825 | ||||||||||||||||
| Money market | 1,023,170 | 1,035,531 | 931,458 | 870,788 | 861,119 | ||||||||||||||||
| Other time certificates | 413,643 | 410,108 | 414,277 | 288,398 | 278,890 | ||||||||||||||||
| Brokered time certificates | 228,602 | 184,405 | 217,385 | 281,551 | 149,270 | ||||||||||||||||
| Time certificates of more than $250,000 | 147,356 | 148,306 | 144,272 | 73,149 | 66,035 | ||||||||||||||||
| Total Deposits | 4,697,440 | 4,719,543 | 4,592,720 | 4,112,600 | 3,975,458 | ||||||||||||||||
| Securities sold under agreements to repurchase | 200,050 | 173,249 | 216,094 | 142,153 | 167,558 | ||||||||||||||||
| Federal Home Loan Bank borrowings | 205,000 | 208,000 | 211,000 | 389,000 | 395,000 | ||||||||||||||||
| Subordinated debt | 70,664 | 70,591 | 70,521 | 70,451 | 70,381 | ||||||||||||||||
| Other liabilities | 33,364 | 29,857 | 30,130 | 31,654 | 95,521 | ||||||||||||||||
| Total Liabilities | 5,206,518 | 5,201,240 | 5,120,465 | 4,745,858 | 4,703,918 | ||||||||||||||||
| Shareholders' Equity | |||||||||||||||||||||
| Common stock | 4,716 | 4,698 | 4,693 | 4,351 | 4,339 | ||||||||||||||||
| Additional paid in capital | 665,885 | 663,727 | 661,632 | 576,825 | 574,842 | ||||||||||||||||
| Retained earnings | 64,790 | 47,825 | 29,914 | 16,161 | 1,945 | ||||||||||||||||
| Treasury stock | (2,884 | ) | (2,279 | ) | (2,359 | ) | (1,730 | ) | (1,768 | ) | |||||||||||
| 732,507 | 713,971 | 693,880 | 595,607 | 579,358 | |||||||||||||||||
| Accumulated other comprehensive loss, net | (16,344 | ) | (12,110 | ) | (4,216 | ) | (1,166 | ) | (1,981 | ) | |||||||||||
| Total Shareholders' Equity | 716,163 | 701,861 | 689,664 | 594,441 | 577,377 | ||||||||||||||||
| Total Liabilities & Shareholders' Equity | $ | 5,922,681 | $ | 5,903,101 | $ | 5,810,129 | $ | 5,340,299 | $ | 5,281,295 | |||||||||||
| Common Shares Outstanding | 47,163,109 | 46,983,165 | 46,917,735 | 43,512,179 | 43,458,973 | ||||||||||||||||
| Note: The balance sheet at December 31, 2017 has been derived from the audited financial statements at that date. | |||||||||||||||||||||
| CONSOLIDATED QUARTERLY FINANCIAL DATA | (Unaudited) | |||||||||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | ||||||||||||||||||||
| Quarterly Trends | ||||||||||||||||||||
| (Dollars in thousands) | 2Q'18 | 1Q'18 | 4Q'17 | 3Q'17 | 2Q'17 | |||||||||||||||
| Credit Analysis | ||||||||||||||||||||
| Net charge-offs (recoveries) - non-acquired loans | $ | 1,715 | $ | 117 | $ | 1,475 | $ | 612 | $ | 304 | ||||||||||
| Net charge-offs (recoveries) - acquired loans | (25 | ) | (116 | ) | (139 | ) | (333 | ) | (405 | ) | ||||||||||
| Total net charge-offs (recoveries) | $ | 1,690 | $ | 1 | $ | 1,336 | $ | 279 | $ | (101 | ) | |||||||||
| TDR valuation adjustments | $ | 33 | $ | 88 | $ | 37 | $ | 169 | $ | 64 | ||||||||||
| Net charge-offs (recoveries) to average loans - non-acquired loans | 0.17 | % | 0.01 | % | 0.16 | % | 0.07 | % | 0.04 | % | ||||||||||
| Net charge-offs (recoveries) to average loans - acquired loans | (0.00 | ) | (0.01 | ) | (0.02 | ) | (0.04 | ) | (0.05 | ) | ||||||||||
| Total net charge-offs (recoveries) to average loans | 0.17 | 0.00 | 0.14 | 0.03 | (0.01 | ) | ||||||||||||||
| Loan loss provision - non-acquired loans | $ | 2,591 | $ | 1,383 | $ | 2,053 | $ | 795 | $ | 1,690 | ||||||||||
| Loan loss provision (recapture) - acquired loans | (62 | ) | (298 | ) | 210 | (115 | ) | (289 | ) | |||||||||||
| Total loan loss provision | $ | 2,529 | $ | 1,085 | $ | 2,263 | $ | 680 | $ | 1,401 | ||||||||||
| Allowance for loan losses - non-acquired loans | $ | 28,384 | $ | 27,541 | $ | 26,363 | $ | 25,822 | $ | 25,809 | ||||||||||
| Allowance for loan losses - acquired loans | 540 | 577 | 759 | 410 | 191 | |||||||||||||||
| Total allowance for loan losses | $ | 28,924 | $ | 28,118 | $ | 27,122 | $ | 26,232 | $ | 26,000 | ||||||||||
| Non-acquired loans at end of period | $ | 3,221,569 | $ | 3,063,618 | $ | 2,922,609 | $ | 2,837,490 | $ | 2,722,866 | ||||||||||
| Purchased noncredit impaired loans at end of period | 739,232 | 819,814 | 877,351 | 537,057 | 594,077 | |||||||||||||||
| Purchased credit impaired loans at end of period | 13,215 | 13,693 | 17,417 | 10,443 | 13,132 | |||||||||||||||
| Total loans | $ | 3,974,016 | $ | 3,897,125 | $ | 3,817,377 | $ | 3,384,990 | $ | 3,330,075 | ||||||||||
| Non-acquired loans allowance for loan losses to non-acquired loans at end of period | 0.88 | % | 0.90 | % | 0.90 | % | 0.91 | % | 0.95 | % | ||||||||||
| Total allowance for loan losses to total loans at end of period | 0.73 | 0.72 | 0.71 | 0.77 | 0.78 | |||||||||||||||
| Acquired loans allowance for loan losses to acquired loans at end of period | 0.07 | 0.07 | 0.08 | 0.07 | 0.03 | |||||||||||||||
| Discount for credit losses to acquired loans at end of period | 2.31 | 2.32 | 2.33 | 2.77 | 3.37 | |||||||||||||||
| End of Period | ||||||||||||||||||||
| Nonperforming loans - non-acquired | $ | 19,578 | $ | 12,628 | $ | 12,569 | $ | 10,877 | $ | 10,541 | ||||||||||
| Nonperforming loans - acquired | 6,624 | 6,711 | 6,955 | 3,498 | 6,632 | |||||||||||||||
| Other real estate owned - non-acquired | 354 | 2,246 | 2,246 | 1,748 | 1,748 | |||||||||||||||
| Other real estate owned - acquired | 4,969 | 4,969 | 1,632 | 1,632 | 1,645 | |||||||||||||||
| Bank branches closed included in other real estate owned | 3,094 | 3,073 | 3,762 | 3,762 | 5,104 | |||||||||||||||
| Total nonperforming assets | $ | 34,619 | $ | 29,627 | $ | 27,164 | $ | 21,517 | $ | 25,670 | ||||||||||
| Restructured loans (accruing) | $ | 14,241 | $ | 14,777 | $ | 15,559 | $ | 16,181 | $ | 16,941 | ||||||||||
| Nonperforming loans to loans at end of period - non-acquired | 0.61 | % | 0.41 | % | 0.43 | % | 0.38 | % | 0.39 | % | ||||||||||
| Nonperforming loans to loans at end of period - acquired | 0.88 | 0.81 | 0.78 | 0.64 | 1.09 | |||||||||||||||
| Allowance for loan losses to nonperforming loans - non-acquired | 144.98 | 218.10 | 209.75 | 237.40 | 244.84 | |||||||||||||||
| Total nonperforming loans to loans at end of period | 0.66 | 0.50 | 0.51 | 0.42 | 0.52 | |||||||||||||||
| Nonperforming assets to total assets - non-acquired | 0.39 | % | 0.30 | % | 0.32 | % | 0.31 | % | 0.33 | % | ||||||||||
| Nonperforming assets to total assets - acquired | 0.19 | 0.20 | 0.15 | 0.10 | 0.16 | |||||||||||||||
| Total nonperforming assets to total assets | 0.58 | 0.50 | 0.47 | 0.40 | 0.49 | |||||||||||||||
| Average Balances | ||||||||||||||||||||
| Total average assets | $ | 5,878,035 | $ | 5,851,688 | $ | 5,716,230 | $ | 5,316,119 | $ | 5,082,002 | ||||||||||
| Less: Intangible assets | 166,393 | 167,136 | 149,432 | 118,364 | 114,563 | |||||||||||||||
| Total average tangible assets | $ | 5,711,642 | $ | 5,684,552 | $ | 5,566,798 | $ | 5,197,755 | $ | 4,967,439 | ||||||||||
| Total average equity | $ | 709,674 | $ | 695,240 | $ | 657,100 | $ | 587,919 | $ | 567,448 | ||||||||||
| Less: Intangible assets | 166,393 | 167,136 | 149,432 | 118,364 | 114,563 | |||||||||||||||
| Total average tangible equity | $ | 543,281 | $ | 528,104 | $ | 507,668 | $ | 469,555 | $ | 452,885 | ||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| LOANS | 2018 | 2018 | 2017 | 2017 | 2017 | |||||||||||||||
| Construction and land development | $ | 359,070 | $ | 374,244 | $ | 343,125 | $ | 245,151 | $ | 230,574 | ||||||||||
| Commercial real estate - Owner Occupied | 812,306 | 796,898 | 791,408 | 688,224 | 654,783 | |||||||||||||||
| Commercial real estate - Non-Owner Occupied | 888,989 | 848,341 | 848,584 | 789,867 | 809,285 | |||||||||||||||
| Residential real estate | 1,103,946 | 1,065,152 | 1,038,810 | 941,169 | 991,144 | |||||||||||||||
| Residential real estate | 190,835 | 195,788 | 189,436 | 185,122 | 179,151 | |||||||||||||||
| Commercial and financial | 618,870 | 616,702 | 606,014 | 535,457 | 465,138 | |||||||||||||||
| Total Loans | $ | 3,974,016 | $ | 3,897,125 | $ | 3,817,377 | $ | 3,384,990 | $ | 3,330,075 | ||||||||||
| AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES (1) | (Unaudited) | |||||||||||||||||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | ||||||||||||||||||||||||||||
| 2Q'18 | 1Q'18 | 2Q'17 | ||||||||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | Average | Yield/ | |||||||||||||||||||||||
| (Dollars in thousands) | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||
| Earning assets: | ||||||||||||||||||||||||||||
| Securities: | ||||||||||||||||||||||||||||
| Taxable | $ | 1,324,280 | $ | 9,389 | 2.84 | % | $ | 1,361,277 | $ | 9,361 | 2.75 | % | $ | 1,261,017 | $ | 8,379 | 2.66 | % | ||||||||||
| Nontaxable | 32,055 | 273 | 3.41 | 32,640 | 307 | 3.76 | 28,092 | 316 | 4.50 | |||||||||||||||||||
| Total Securities | 1,356,335 | 9,662 | 2.85 | 1,393,917 | 9,668 | 2.77 | 1,289,109 | 8,695 | 2.70 | |||||||||||||||||||
| Federal funds sold and other investments | 49,387 | 585 | 4.75 | 56,173 | 616 | 4.45 | 72,535 | 604 | 3.34 | |||||||||||||||||||
| Loans, net | 3,948,460 | 46,549 | 4.73 | 3,872,369 | 45,284 | 4.74 | 3,266,812 | 38,263 | 4.70 | |||||||||||||||||||
| Total Earning Assets | 5,354,182 | 56,796 | 4.25 | 5,322,459 | 55,568 | 4.23 | 4,628,456 | 47,562 | 4.12 | |||||||||||||||||||
| Allowance for loan losses | (29,234 | ) | (27,469 | ) | (25,276 | ) | ||||||||||||||||||||||
| Cash and due from banks | 110,549 | 113,899 | 99,974 | |||||||||||||||||||||||||
| Premises and equipment | 64,445 | 65,932 | 59,415 | |||||||||||||||||||||||||
| Intangible assets | 166,393 | 167,136 | 114,563 | |||||||||||||||||||||||||
| Bank owned life insurance | 121,008 | 122,268 | 87,514 | |||||||||||||||||||||||||
| Other assets | 90,692 | 87,463 | 117,356 | |||||||||||||||||||||||||
| Total Assets | $ | 5,878,035 | $ | 5,851,688 | $ | 5,082,002 | ||||||||||||||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||
| Interest-bearing demand | $ | 996,929 | $ | 492 | 0.20 | $ | 1,001,672 | $ | 450 | 0.18 | $ | 949,981 | $ | 262 | 0.11 | |||||||||||||
| Savings | 439,691 | 118 | 0.11 | 435,433 | 104 | 0.10 | 378,989 | 51 | 0.05 | |||||||||||||||||||
| Money market | 1,027,705 | 1,378 | 0.54 | 976,498 | 984 | 0.41 | 868,427 | 541 | 0.25 | |||||||||||||||||||
| Time deposits | 790,404 | 2,629 | 1.33 | 776,807 | 2,179 | 1.14 | 432,805 | 814 | 0.75 | |||||||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 179,540 | 334 | 0.75 | 175,982 | 274 | 0.63 | 174,715 | 194 | 0.45 | |||||||||||||||||||
| Federal Home Loan Bank borrowings | 160,846 | 741 | 1.85 | 276,389 | 1,030 | 1.51 | 323,780 | 780 | 0.97 | |||||||||||||||||||
| Other borrowings | 70,623 | 810 | 4.60 | 70,550 | 694 | 3.99 | 70,343 | 600 | 3.42 | |||||||||||||||||||
| Total Interest-Bearing Liabilities | 3,665,738 | 6,502 | 0.71 | 3,713,331 | 5,715 | 0.62 | 3,199,040 | 3,242 | 0.41 | |||||||||||||||||||
| Noninterest demand | 1,473,331 | 1,413,967 | 1,283,255 | |||||||||||||||||||||||||
| Other liabilities | 29,292 | 29,150 | 32,259 | |||||||||||||||||||||||||
| Total Liabilities | 5,168,361 | 5,156,448 | 4,514,554 | |||||||||||||||||||||||||
| Shareholders' equity | 709,674 | 695,240 | 567,448 | |||||||||||||||||||||||||
| Total Liabilities & Equity | $ | 5,878,035 | $ | 5,851,688 | $ | 5,082,002 | ||||||||||||||||||||||
| Interest expense as a % of earning assets | 0.49 | 0.44 | 0.28 | |||||||||||||||||||||||||
| Net interest income as a % of earning assets | $ | 50,294 | 3.77 | % | $ | 49,853 | 3.80 | % | $ | 44,320 | 3.84 | % | ||||||||||||||||
| (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 | ||||||||||||||||||
| 2018 | 2017 | |||||||||||||||||
| Year to Date | Year to Date | |||||||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||||||
| (Dollars in thousands) | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||
| Assets | ||||||||||||||||||
| Earning assets: | ||||||||||||||||||
| Securities: | ||||||||||||||||||
| Taxable | $ | 1,342,676 | $ | 18,750 | 2.79 | % | $ | 1,270,081 | $ | 16,466 | 2.59 | % | ||||||
| Nontaxable | 32,346 | 580 | 3.59 | 27,963 | 757 | 5.41 | ||||||||||||
| Total Securities | 1,375,022 | 19,330 | 2.81 | 1,298,044 | 17,223 | 2.65 | ||||||||||||
| Federal funds sold and other investments | 52,761 | 1,201 | 4.59 | 64,697 | 1,114 | 3.47 | ||||||||||||
| Loans, net | 3,910,625 | 91,833 | 4.74 | 3,093,700 | 70,212 | 4.58 | ||||||||||||
| Total Earning Assets | 5,338,408 | 112,364 | 4.24 | 4,456,441 | 88,549 | 4.01 | ||||||||||||
| Allowance for loan losses | (28,356 | ) | (24,658 | ) | ||||||||||||||
| Cash and due from banks | 112,215 | 102,872 | ||||||||||||||||
| Premises and equipment | 65,184 | 59,101 | ||||||||||||||||
| Intangible assets | 166,762 | 96,819 | ||||||||||||||||
| Bank owned life insurance | 121,635 | 86,170 | ||||||||||||||||
| Other assets | 89,086 | 115,184 | ||||||||||||||||
| Total Assets | $ | 5,864,934 | $ | 4,891,929 | ||||||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| Interest-bearing demand | $ | 999,287 | $ | 942 | 0.19 | % | $ | 892,432 | $ | 425 | 0.10 | % | ||||||
| Savings | 437,574 | 222 | 0.10 | 366,291 | 95 | 0.05 | ||||||||||||
| Money market | 1,002,243 | 2,362 | 0.48 | 836,289 | 958 | 0.23 | ||||||||||||
| Time deposits | 783,643 | 4,808 | 1.24 | 390,211 | 1,380 | 0.71 | ||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 177,771 | 608 | 0.69 | 177,891 | 347 | 0.39 | ||||||||||||
| Federal Home Loan Bank borrowings | 218,298 | 1,771 | 1.64 | 374,680 | 1,482 | 0.80 | ||||||||||||
| Other borrowings | 70,587 | 1,504 | 4.30 | 70,308 | 1,165 | 3.34 | ||||||||||||
| Total Interest-Bearing Liabilities | 3,689,403 | 12,217 | 0.67 | 3,108,102 | 5,852 | 0.38 | ||||||||||||
| Noninterest demand | 1,443,813 | 1,233,809 | ||||||||||||||||
| Other liabilities | 29,221 | 32,593 | ||||||||||||||||
| Total Liabilities | 5,162,437 | 4,374,504 | ||||||||||||||||
| Shareholders' equity | 702,497 | 517,425 | ||||||||||||||||
| Total Liabilities & Equity | $ | 5,864,934 | $ | 4,891,929 | ||||||||||||||
| Interest expense as a % of earning assets | 0.46 | 0.26 | ||||||||||||||||
| Net interest income as a % of earning assets | $ | 100,147 | 3.78 | % | $ | 82,697 | 3.74 | % | ||||||||||
| (1) On a fully taxable equivalent basis. All yields and rates have been computed on an annualized basis using amortized cost. | ||||||||||||||||||
| Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances. | ||||||||||||||||||
| CONSOLIDATED QUARTERLY FINANCIAL DATA | (Unaudited) | |||||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | ||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||
| (Dollars in thousands) | 2018 | 2018 | 2017 | 2017 | 2017 | |||||||||||
| Customer Relationship Funding | ||||||||||||||||
| Noninterest demand | ||||||||||||||||
| Commercial | $ | 1,154,225 | $ | 1,163,119 | $ | 1,073,539 | $ | 997,749 | $ | 995,720 | ||||||
| Retail | 236,838 | 252,055 | 253,454 | 217,809 | 238,506 | |||||||||||
| Public funds | 44,182 | 49,014 | 50,837 | 43,686 | 47,691 | |||||||||||
| Other | 28,407 | 24,073 | 22,397 | 24,874 | 26,541 | |||||||||||
| 1,463,652 | 1,488,261 | 1,400,227 | 1,284,118 | 1,308,458 | ||||||||||||
| Interest-bearing demand | ||||||||||||||||
| Commercial | 181,646 | 164,359 | 157,272 | 156,176 | 155,178 | |||||||||||
| Retail | 681,615 | 700,262 | 702,616 | 670,705 | 659,906 | |||||||||||
| Public funds | 113,020 | 150,433 | 190,867 | 108,216 | 119,777 | |||||||||||
| 976,281 | 1,015,054 | 1,050,755 | 935,097 | 934,861 | ||||||||||||
| Total transaction accounts | ||||||||||||||||
| Commercial | 1,335,871 | 1,327,478 | 1,230,811 | 1,153,925 | 1,150,898 | |||||||||||
| Retail | 918,453 | 952,317 | 956,070 | 888,514 | 898,412 | |||||||||||
| Public funds | 157,202 | 199,447 | 241,704 | 151,902 | 167,468 | |||||||||||
| Other | 28,407 | 24,073 | 22,397 | 24,874 | 26,541 | |||||||||||
| 2,439,933 | 2,503,315 | 2,450,982 | 2,219,215 | 2,243,319 | ||||||||||||
| Savings | 444,736 | 437,878 | 434,346 | 379,499 | 376,825 | |||||||||||
| Money market | ||||||||||||||||
| Commercial | 408,005 | 410,527 | 375,471 | 360,567 | 351,871 | |||||||||||
| Retail | 522,783 | 522,882 | 471,086 | 431,325 | 427,575 | |||||||||||
| Public funds | 92,382 | 102,122 | 84,901 | 78,896 | 81,673 | |||||||||||
| 1,023,170 | 1,035,531 | 931,458 | 870,788 | 861,119 | ||||||||||||
| Time certificates of deposit | 789,601 | 742,819 | 775,934 | 643,098 | 494,195 | |||||||||||
| Total Deposits | $ | 4,697,440 | $ | 4,719,543 | $ | 4,592,720 | $ | 4,112,600 | $ | 3,975,458 | ||||||
| Customer sweep accounts | $ | 200,050 | $ | 173,249 | $ | 216,094 | $ | 142,153 | $ | 167,558 | ||||||
| Total core customer funding (1) | $ | 4,107,889 | $ | 4,149,973 | $ | 4,032,880 | $ | 3,611,655 | $ | 3,648,821 | ||||||
| (1) Total deposits and customer sweep accounts, excluding certificates of deposit. | ||||||||||||||||
Explanation of Certain Unaudited Non-GAAP Financial Measures
This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance. The Company believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance and if not provided would be requested by the investor community. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently. The Company provides reconciliations between GAAP and these non-GAAP measures. These disclosures should not be considered an alternative to GAAP.
| Quarterly Trends | YTD | ||||||||||||||||||||||||||||
| (Dollars in thousands except per share data) | June 30, | June 30, | |||||||||||||||||||||||||||
| 2Q'18 | 1Q'18 | 4Q'17 | 3Q'17 | 2Q'17 | 2018 | 2017 | |||||||||||||||||||||||
| Net income | $ | 16,964 | $ | 18,027 | $ | 13,047 | $ | 14,216 | $ | 7,676 | $ | 34,991 | $ | 15,602 | |||||||||||||||
| Gain on sale of VISA stock | 0 | 0 | (15,153 | ) | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Securities (gains)/losses, net | 48 | 102 | (112 | ) | 47 | (21 | ) | 150 | (21 | ) | |||||||||||||||||||
| Total Adjustments to Revenue | 48 | 102 | (15,265 | ) | 47 | (21 | ) | 150 | (21 | ) | |||||||||||||||||||
| Merger related charges | 695 | 470 | 6,817 | 491 | 5,081 | 1,165 | 5,614 | ||||||||||||||||||||||
| Amortization of intangibles | 1,004 | 989 | 963 | 839 | 839 | 1,993 | 1,558 | ||||||||||||||||||||||
| Business continuity expenses - Hurricane Irma | 0 | 0 | 0 | 352 | 0 | 0 | 0 | ||||||||||||||||||||||
| Branch reductions and other expense initiatives | 0 | 0 | 0 | (127 | ) | 1,876 | 0 | 4,448 | |||||||||||||||||||||
| Total Adjustments to Noninterest Expense | 1,699 | 1,459 | 7,780 | 1,555 | 7,796 | 3,158 | 11,620 | ||||||||||||||||||||||
| Effective tax rate on adjustments | (443 | ) | (538 | ) | 3,147 | (673 | ) | (2,786 | ) | (981 | ) | (4,266 | ) | ||||||||||||||||
| Effect of change in corporate tax rate | 0 | 248 | 8,552 | 0 | 0 | 248 | 0 | ||||||||||||||||||||||
| Adjusted Net Income | $ | 18,268 | $ | 19,298 | $ | 17,261 | $ | 15,145 | $ | 12,665 | $ | 37,566 | $ | 22,935 | |||||||||||||||
| Earnings per diluted share, as reported | 0.35 | 0.38 | 0.28 | 0.32 | 0.18 | 0.73 | 0.38 | ||||||||||||||||||||||
| Adjusted Earnings per Diluted Share | 0.38 | 0.40 | 0.37 | 0.35 | 0.29 | 0.79 | 0.55 | ||||||||||||||||||||||
| Average shares outstanding (000) | 47,974 | 47,688 | 46,473 | 43,792 | 43,556 | 47,828 | 41,539 | ||||||||||||||||||||||
| Revenue | $ | 62,928 | $ | 62,058 | $ | 74,868 | $ | 57,183 | $ | 54,644 | $ | 124,985 | $ | 102,714 | |||||||||||||||
| Total Adjustments to Revenue | 48 | 102 | (15,265 | ) | 47 | (21 | ) | 150 | (21 | ) | |||||||||||||||||||
| Adjusted Revenue | 62,976 | 62,160 | 59,603 | 57,230 | 54,623 | 125,135 | 102,693 | ||||||||||||||||||||||
| Noninterest Expense | 38,246 | 37,164 | 39,184 | 34,361 | 41,625 | 75,410 | 76,371 | ||||||||||||||||||||||
| Total Adjustments to Noninterest Expense | 1,699 | 1,459 | 7,780 | 1,555 | 7,796 | 3,158 | 11,620 | ||||||||||||||||||||||
| Adjusted Noninterest Expense | 36,547 | 35,705 | 31,404 | 32,806 | 33,829 | 72,252 | 64,751 | ||||||||||||||||||||||
| Adjusted Noninterest Expense | 36,547 | 35,705 | 31,404 | 32,806 | 33,829 | 72,252 | 64,751 | ||||||||||||||||||||||
| Foreclosed property expense and net (gain)/loss on sale | 405 | 192 | (7 | ) | (296 | ) | 297 | 597 | 4 | ||||||||||||||||||||
| Net Adjusted Noninterest Expense | 36,142 | 35,513 | 31,411 | 33,102 | 33,532 | 71,655 | 64,747 | ||||||||||||||||||||||
| Adjusted Revenue | 62,976 | 62,160 | 59,603 | 57,230 | 54,623 | 125,135 | 102,693 | ||||||||||||||||||||||
| Impact of FTE adjustment | 87 | 91 | 174 | 154 | 164 | 178 | 375 | ||||||||||||||||||||||
| Adjusted Revenue on a fully taxable equivalent basis | 63,063 | 62,251 | 59,777 | 57,384 | 54,787 | 125,313 | 103,068 | ||||||||||||||||||||||
| Adjusted Efficiency Ratio | 57.3 | % | 57.1 | % | 52.6 | % | 57.7 | % | 61.2 | % | 57.2 | % | 62.8 | % | |||||||||||||||
| Average Assets | $ | 5,878,035 | $ | 5,851,688 | $ | 5,716,230 | $ | 5,316,119 | $ | 5,082,002 | $ | 5,864,934 | $ | 4,891,929 | |||||||||||||||
| Less average goodwill and intangible assets | (166,393 | ) | (167,136 | ) | (149,432 | ) | (118,364 | ) | (114,563 | ) | (166,762 | ) | (96,819 | ) | |||||||||||||||
| Average Tangible Assets | 5,711,642 | 5,684,552 | 5,566,798 | 5,197,755 | 4,967,439 | 5,698,172 | 4,795,110 | ||||||||||||||||||||||
| Return on Average Assets (ROA) | 1.16 | % | 1.25 | % | 0.91 | % | 1.06 | % | 0.61 | % | 1.20 | % | 0.64 | % | |||||||||||||||
| Impact of removing average intangible assets and related amortization | 0.08 | 0.09 | 0.06 | 0.06 | 0.05 | 0.09 | 0.06 | ||||||||||||||||||||||
| Return on Tangible Average Assets (ROTA) | 1.24 | 1.34 | 0.97 | 1.12 | 0.66 | 1.29 | 0.70 | ||||||||||||||||||||||
| Impact of other adjustments for Adjusted Net Income | 0.04 | 0.04 | 0.26 | 0.04 | 0.36 | 0.04 | 0.26 | ||||||||||||||||||||||
| Adjusted Return on Average Tangible Assets | 1.28 | 1.38 | 1.23 | 1.16 | 1.02 | 1.33 | 0.96 | ||||||||||||||||||||||
| Average Shareholders' Equity | $ | 709,674 | $ | 695,240 | $ | 657,100 | $ | 587,919 | $ | 567,448 | $ | 702,497 | $ | 517,425 | |||||||||||||||
| Less average goodwill and intangible assets | (166,393 | ) | (167,136 | ) | (149,432 | ) | (118,364 | ) | (114,563 | ) | (166,762 | ) | (96,819 | ) | |||||||||||||||
| Average Tangible Equity | 543,281 | 528,104 | 507,668 | 469,555 | 452,885 | 535,735 | 420,606 | ||||||||||||||||||||||
| Return on Average Shareholders' Equity | 9.6 | % | 10.5 | % | 7.9 | % | 9.6 | % | 5.4 | % | 10.0 | % | 6.1 | % | |||||||||||||||
| Impact of removing average intangible assets and related amortization | 3.5 | 3.9 | 2.8 | 2.9 | 1.9 | 3.7 | 1.8 | ||||||||||||||||||||||
| Return on Average Tangible Common Equity (ROTCE) | 13.1 | 14.4 | 10.7 | 12.5 | 7.3 | 13.7 | 7.9 | ||||||||||||||||||||||
| Impact of other adjustments for Adjusted Net Income | 0.4 | 0.4 | 2.8 | 0.3 | 3.9 | 0.4 | 3.1 | ||||||||||||||||||||||
| Adjusted Return on Average Tangible Common Equity | 13.5 | 14.8 | 13.5 | 12.8 | 11.2 | 14.1 | 11.0 | ||||||||||||||||||||||