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Section 1: 8-K (8-K)

Document
false0000730708 0000730708 2020-01-23 2020-01-23



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported) January 23, 2020

SEACOAST BANKING CORPORATION OF FLORIDA
(Exact Name of Registrant as Specified in Charter)

Florida
000-13660
59-2260678
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)

815 COLORADO AVENUE,
STUART
FL
 
34994
(Address of Principal Executive Offices)
 
(Zip Code)


Registrant’s telephone number, including area code (772) 287-4000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.)

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock
SBCF
Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  






SEACOAST BANKING CORPORATION OF FLORIDA



Item 2.02    Results of Operations and Financial Condition

On January 23, 2020, Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”) announced its financial results for the quarter and year ended December 31, 2019. A copy of the press release announcing Seacoast’s results for the quarter and year ended December 31, 2019 is attached hereto as Exhibit 99.1 and incorporated herein by reference.

Item 7.01    Regulation FD Disclosure

On January 24, 2020, Seacoast will hold an investor conference call to discuss its financial results for the quarter and year ended December 31, 2019. Attached as Exhibit 99.2 are charts (available on the Company’s website at www.seacoastbanking.com) containing information used in the conference call and incorporated herein by reference. All information included in the charts is presented as of December 31, 2019, and the Company does not assume any obligation to correct or update said information in the future.

The information in Items 2.02 and 7.01, as well as Exhibits 99.1 and 99.2 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.

Item 9.01    Financial Statements and Exhibits

(d) Exhibits

Exhibit No.
 
Description
99.1
 
99.2
 
104
 
Cover Page Interactive Data File (embedded within the Inline XBRL document)

Exhibits 99.1 and 99.2 referenced herein, contain “forward-looking statements” within the meaning of Section 28A 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, new initiatives 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.

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.







SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SEACOAST BANKING CORPORATION OF FLORIDA
(Registrant)

Date:  January 23, 2020
/s/ Charles M. Shaffer
 
CHARLES M. SHAFFER
 
Chief Operating Officer and Chief Financial Officer




(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

SBCF 4Q 2019 Earnings Release Combined Document
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Charles M. Shaffer
Executive Vice President
Chief Operating Officer and
Chief Financial Officer
(772) 221-7003
[email protected]

SEACOAST REPORTS RECORD FOURTH QUARTER AND FULL YEAR 2019 RESULTS
Full Year 2019 Net Income Increased 47% to $98.7 million
Continued Improvements in Operating Leverage and Record Loan Originations
Highlight 4Q Results

STUART, Fla., January 23, 2020 /GLOBE NEWSWIRE/ -- Seacoast Banking Corporation of Florida (“Seacoast” or the "Company”) (NASDAQ: SBCF) today reported fourth quarter 2019 net income of $27.2 million, or $0.52 per diluted share, an increase of 70%, or $11.2 million, year-over-year. For the full year 2019, net income was $98.7 million, or $1.90 per share, an increase of 47% year-over-year. Seacoast reported fourth quarter 2019 adjusted net income1 of $26.8 million, or $0.52 per diluted share, an increase of 12%, or $2.9 million, compared to the fourth quarter of 2018. For the full year 2019, adjusted net income1 was $104.6 million, or $2.01 per share, an increase of 32% year-over-year.

For the fourth quarter of 2019, return on average tangible assets was 1.66%, return on average tangible shareholders’ equity was 15.0%, and the efficiency ratio was 48.4%, compared to 1.05%, 10.9%, and 65.8%, respectively, in the fourth quarter of 2018. For the year ended December 31, 2019, return on average tangible assets was 1.56%, return on average tangible shareholders' equity was 14.7% and the efficiency ratio was 51.7% compared to 1.20%, 14.1% and 60.0% for the year ended December 31, 2018.

Adjusted return on average tangible assets1 was 1.57%, adjusted return on average tangible shareholders’ equity1 was 14.2%, and the adjusted efficiency ratio1 was 47.5% in the fourth quarter of 2019, compared to 1.49%, 15.4%, and 54.2%, respectively, in the fourth quarter of 2018. For the year ended December 31, 2019, adjusted return on average tangible assets1 was 1.58%, adjusted return on average tangible shareholders' equity1 was 14.9% and the adjusted efficiency ratio1 was 50.9%, compared to 1.35%, 14.1% and 56.1% for the year ended December 31, 2018.

Dennis S. Hudson, III, Seacoast’s Chairman and CEO, said, "The Seacoast team closed another record year with net income of $27.2 million for the fourth quarter and $98.7 million for the full year 2019. We continue to generate disciplined growth as reflected in record originations for the quarter of $587 million, while maintaining our strict underwriting guidelines and delivering continued improvements in operating leverage."

Hudson added, "During the quarter, we announced the upcoming acquisition of First Bank of the Palm Beaches. This acquisition builds upon our two previous Palm Beach County acquisitions and strengthens our presence in Florida's largest and the nation's seventh largest MSA. We are also excited to announce the acquisition of Fourth Street Banking Company, the holding company for Freedom Bank of St. Petersburg. This is an exceptional addition to our two previous acquisitions in the state's second largest MSA. The combination of this acquisition and the First Bank transaction will provide earnings per share accretion of more than 5% to 2021 and has minimal up front dilution to tangible book value per share, earned back in less than two years."

Charles M. Shaffer, Seacoast’s Chief Operating Officer and Chief Financial Officer, said, “We delivered another quarter of consistent growth in tangible book value per share, ending the period at $14.76, up 20% over the prior year. During the fourth quarter, net interest margin declined only 1 basis point excluding the impact of accretion of purchase discounts on acquired loans, demonstrating the exceptional quality of our balance sheet and customer franchise. This balance sheet is fortified with a robust capital base, strong asset quality and a prudent liquidity position. As the banking cycle

1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.    

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continues to mature, Seacoast is committed to maintaining its fortress balance sheet, built on strong capital and strict credit underwriting.”
Fourth Quarter 2019 Financial Highlights
Income Statement
Net income was $27.2 million, or $0.52 per diluted share, compared to $25.6 million, or $0.49, for the prior quarter and $16.0 million, or $0.31, for the fourth quarter of 2018. For the year ended December 31, 2019, net income was $98.7 million, or $1.90 per diluted share, compared to $67.3 million, or $1.38, for the year ended December 31, 2018. Adjusted net income1 was $26.8 million, or $0.52 per diluted share, compared to $27.7 million, or $0.53, for the prior quarter and $23.9 million, or $0.47, for the fourth quarter of 2018. For the year ended December 31, 2019, adjusted net income1 was $104.6 million, or $2.01 per diluted share, compared to $79.1 million, or $1.62, for the year ended December 31, 2018.
Net revenues were $78.1 million, an increase of $3.2 million, or 4%, compared to the prior quarter, and an increase of $5.4 million, or 7%, compared to the fourth quarter of 2018. For the year ended December 31, 2019, net revenues were $300.4 million, an increase of $38.8 million, or 15%, compared to the year ended December 31, 2018. Adjusted revenues1 were $75.6 million, an increase of $0.8 million, or 1%, from the prior quarter and an increase of $2.8 million, or 4%, from the fourth quarter of 2018. For the year ended December 31, 2019, adjusted revenues1 were $298.2 million, an increase of $36.3 million, or 14%, compared to the year ended December 31, 2018.
Net interest income totaled $61.8 million, an increase of $0.8 million, or 1%, from the prior quarter and an increase of $1.8 million, or 3%, from the fourth quarter of 2018. For the year ended December 31, 2019, net interest income was $243.6 million, an increase of $32.1 million, or 15%, compared to the year ended December 31, 2018.
Net interest margin was 3.84% in the fourth quarter of 2019, 3.89% in the third quarter of 2019 and 4.00% in the fourth quarter of 2018. Quarter-over-quarter, the yield on loans contracted 17 basis points, the yield on securities contracted 12 basis points, and the cost of deposits decreased 12 basis points. The impact on net interest margin from accretion of purchase discounts on acquired loans was 21 basis points in the fourth quarter of 2019, compared to 25 basis points in the prior quarter and 27 basis points in the fourth quarter of 2018. Excluding the impact of accretion, the net interest margin decreased only 1 basis point from the prior quarter and the yield on loans contracted 13 basis points. Decreases in the yield on both loans and securities reflect the impact of a lower interest rate environment, affecting variable-rate portfolios and resulting in lower add-on rates for new loans originated and securities purchased.
Noninterest income totaled $16.4 million, an increase of $2.4 million, or 17%, compared to the prior quarter and an increase of $3.7 million, or 29%, from the fourth quarter of 2018. For the year ended December 31, 2019, noninterest income was $56.7 million, an increase of $6.7 million, or 13%, compared to the year ended December 31, 2018. Changes in noninterest income consisted of the following:
After a record third quarter boosted by refinance activity, mortgage banking fees decreased $0.6 million in the fourth quarter to $1.5 million. For the full year, mortgage banking fees increased $1.8 million, or 39%, to $6.5 million compared to the prior year, reflecting our strategic focus on generating saleable volume.
Interchange income increased $0.2 million, or 6%, in the fourth quarter, and $1.1 million, or 9%, for the full year, the result of increased transaction activity across a growing customer base.
Lower other income in the fourth quarter reflects the $1.0 million BOLI death benefit recorded in the third quarter partially offset by swap fees of $0.6 million in the fourth quarter of 2019.
During the quarter, securities gains of $2.5 million resulted from the opportunistic sale of $79.8 million of longer duration bonds yielding 2.8% transacted when the 10-year treasury rate declined early in the quarter.
The provision for loan losses was $4.8 million compared to $2.3 million in the prior quarter and $2.3 million in the fourth quarter of 2018. The increase in provision primarily reflects strong loan growth in the fourth quarter of 2019 and a modestly higher increase in net charge-offs during the fourth quarter when compared to the third quarter of

1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.    

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2019. Looking back over the last four quarters, net charge offs were 0.16% of average loans outstanding, in line with our expectations and reflecting continued strong asset quality trends.
Noninterest expense was $38.1 million, a decrease of $0.5 million, or 1%, compared to the prior quarter and a decrease of $11.4 million, or 23%, from the fourth quarter of 2018. For the year ended December 31, 2019, noninterest expense was $160.7 million, a decrease of $1.5 million, or 1%, compared to the year ended December 31, 2018. Changes from the third quarter of 2019 in noninterest expense consisted of the following:
Salaries and benefits decreased $1.0 million on a combined basis, the result of lower incentive accruals and our continued proven success at focusing on cost control across the franchise.
Legal and professional fees increased $0.4 million, including $0.6 million incurred in the fourth quarter for merger related activities.
Other expenses increased $0.6 million, including increases of $0.3 million in lending-related costs to support increased production and $0.2 million in recruiting and supporting the onboarding of new sales talent. For the full year, other expenses are down $2.0 million compared to 2018, reflecting our continued focus on efficiency and streamlining operations.
During the third quarter of 2019, the FDIC announced the achievement of their target deposit insurance reserve ratio, resulting in our ability to offset FDIC assessments with previously awarded credits. The Company has remaining credits of $0.7 million, which will be applied to future assessments if the FDIC’s reserve ratio remains above the target threshold.
Seacoast recorded $8.1 million in income tax expense in the fourth quarter of 2019, compared to $8.5 million in the prior quarter and $4.9 million in the fourth quarter of 2018. The prior quarter included net additional income tax expense of $0.7 million resulting from the change in the Florida corporate income tax rate.
Year to date adjusted revenues1 increased 14% compared to prior year while adjusted noninterest expense1 increased 3%, generating 11% operating leverage.
The efficiency ratio was 48.4% compared to 48.6% in the prior quarter and 65.8% in the fourth quarter of 2018. The adjusted efficiency ratio1 was 47.5% compared to 49.0% in the prior quarter and 54.2% in the fourth quarter of 2018.

Balance Sheet
At December 31, 2019, the Company had total assets of $7.1 billion and total shareholders' equity of $985.6 million. Book value per share was $19.13 and tangible book value per share was $14.76, compared to $18.70 and $14.30, respectively, at September 30, 2019 and $16.83 and $12.33, respectively, at December 31, 2018. Year-over-year, tangible book value per share increased 20%.
Debt Securities totaled $1.2 billion at December 31, 2019, an increase of $13.8 million compared to September 30, 2019 and a decrease of $15.6 million from December 31, 2018. During the quarter, securities gains of $2.5 million resulted from the opportunistic sale of $79.8 million of longer duration bonds yielding 2.8% transacted when the 10-year treasury rate declined early in the quarter.
Loans totaled $5.2 billion at December 31, 2019, an increase of $212.1 million, or 4%, compared to September 30, 2019, and an increase of $373.2 million, or 8%, from December 31, 2018. Changes in total loans consisted of the following:
New loan originations of $587 million, compared to $488 million in the prior quarter, contributed to net loan growth in the quarter of 17% on an annualized basis. Excluding the $99.0 million residential mortgage portfolio purchased during the quarter, net loan growth was 9% on an annualized basis. Loans outstanding have grown 8% year-over-year.
Commercial originations during the fourth quarter of 2019 were $247.0 million, a decrease of $35.2 million, or 12%, compared to the third quarter of 2019. Excluding the purchase of a $52.1 million commercial real estate loan portfolio in the third quarter of 2019, commercial originations increased in the

1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.    

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fourth quarter $16.8 million, or 7%. Compared to the fourth quarter of 2018, commercial originations increased $87.6 million, or 55%.
Residential loan originations were $225.1 million in the fourth quarter of 2019, compared to $103.1 million in the third quarter of 2019 and $104.7 million in the fourth quarter of 2018. Originations in the fourth quarter of 2019 include the opportunistic purchase of a $99.0 million residential mortgage portfolio. Excluding that purchase, residential loan originations increased $28.8 million, or 30%, compared to the third quarter of 2019, and $21.3 million, or 20%, compared to the fourth quarter of 2018.
Consumer and small business originations for the fourth quarter of 2019 were $115.0 million, an increase of 12% compared to the third quarter of 2019 and an increase of 1% compared to the fourth quarter of 2018.
The Company continues to prudently manage commercial real estate exposure. Construction and land development and commercial real estate loans remain well below regulatory guidance at 40% and 204% of total bank-level risk based capital, respectively, compared to 42% and 204%, respectively, in the third quarter of 2019. On a consolidated basis, construction and land development and commercial real estate loans represent 38% and 191%, respectively, of total consolidated risk based capital.
The funded balances of our top 10 and top 20 relationships represented 21% and 39%, respectively, of total consolidated risk based capital, compared to 22% and 37% in the fourth quarter of 2018 and 34% and 54% in the fourth quarter of 2016. Our average commercial loan size is $365,000.
Pipelines (loans in underwriting and approval or approved and not yet closed) totaled $339.2 million at December 31, 2019.
Commercial pipelines were $256.0 million, an increase of 56% compared to December 31, 2018. The increase year-over-year reflects the successful addition of talent to our commercial banking team and better execution across the franchise.
Residential saleable pipelines were $19.0 million, an increase of 40% compared to December 31, 2018. The year-over-year increase reflects our continued strategic focus of generating saleable volume and the addition of talent across the franchise.
Retained residential pipelines were $19.1 million, a decrease of 37% compared to December 31, 2018. The year-over-year decrease reflects our continued strategic focus on generating saleable volume.
Consumer and small business pipelines were $45.1 million, a decrease of 16% compared to December 31, 2018.     
Total deposits were $5.6 billion as of December 31, 2019, a decrease of $88.4 million, or 2%, sequentially and an increase of $407.5 million, or 8%, from the prior year.
Overall cost of deposits declined to 61 basis points in the fourth quarter of 2019 from 73 basis points in the prior quarter, reflecting the impact of interest rate cuts in the second half of 2019 by the Federal Reserve. By keeping a targeted focus on customer acquisition and a relationship-driven strategy, the Company has successfully maintained discipline in deposit pricing.
Total transaction accounts increased 7% year-over-year, reflecting continued strong growth in core customer balances, and represent 50% of overall deposit funding.
Interest-bearing deposits (interest-bearing demand, savings and money market deposits) increased year-over-year $127.5 million, or 5%, to $2.8 billion, noninterest bearing demand deposits increased $20.9 million, or 1%, to $1.6 billion, and CDs (excluding brokered) increased $6.9 million, or 1%, to $712.2 million.
Fourth quarter return on average tangible assets (ROTA) was 1.66%, compared to 1.61% in the prior quarter and 1.05% in the fourth quarter of 2018. Adjusted ROTA1 was 1.57% compared to 1.67% in the prior quarter and 1.49% in the fourth quarter of 2018. The decline in adjusted ROTA1 in the current quarter reflects the impact of higher provision expense and substantial loan growth, partially offset by higher net interest income and lower noninterest expense.

1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.    

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Capital
Fourth quarter return on average tangible common equity (ROTCE) was 15.0%, compared to 14.7% in the prior quarter and 10.9% in the fourth quarter of 2018. Adjusted ROTCE1 was 14.2% compared to 15.3% in the prior quarter and 15.4% in the fourth quarter of 2018. The decline in adjusted ROTCE1 in the fourth quarter reflects the impact of a robust growing capital base.
The tier 1 capital ratio was 15.0%, total capital ratio was 15.7% and the tier 1 leverage ratio was 12.2% at December 31, 2019.
Tangible common equity to tangible assets was 11.1% at December 31, 2019, compared to 11.1% at September 30, 2019 and 9.7% at December 31, 2018.
Asset Quality
Nonperforming loans to total loans outstanding was 0.52% at December 31, 2019, 0.52% at September 30, 2019, and 0.55% at December 31, 2018.
Nonperforming assets to total assets was 0.55% at December 31, 2019, 0.58% at September 30, 2019 and 0.58% at December 31, 2018.
The ratio of allowance for loan losses to total loans was 0.68% at December 31, 2019, 0.67% at September 30, 2019, and 0.67% at December 31, 2018. The ratio of allowance for loan losses to non-acquired loans was 0.80% at December 31, 2019, 0.84% at September 30, 2019, and 0.89% at December 31, 2018.
Net charge-offs were $3.2 million, or 0.25%, of average loans for the fourth quarter of 2019 compared to $2.1 million, or 0.17%, of average loans in the third quarter of 2019 and $3.7 million, or 0.32% of average loans in the fourth quarter of 2018. Net charge-offs for the four most recent quarters averaged 0.16%, in line with our expectations for full year 2019.

1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.    

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FINANCIAL HIGHLIGHTS
 
 
 
 
 
 
 
 
(Amounts in thousands except per share data)
(Unaudited)
 
 
Quarterly Trends
 
 
 
 
 
 
 
 
 
 
 
 
 
4Q'19
 
3Q'19
 
2Q'19
 
1Q'19
 
4Q'18
 
Selected Balance Sheet Data:
 
 
 
 
 
 
 
 
 
 
Total Assets
$
7,108,511

 
$
6,890,645

 
$
6,824,886

 
$
6,783,389

 
$
6,747,659

 
Gross Loans
5,198,404

 
4,986,289

 
4,888,139

 
4,828,441

 
4,825,214

 
Total Deposits
5,584,753

 
5,673,141

 
5,541,209

 
5,605,578

 
5,177,240

 
 
 
 
 
 
 
 
 
 
 
 
Performance Measures:
 
 
 
 
 
 
 
 
 
 
Net Income
$
27,176

 
$
25,605

 
$
23,253

 
$
22,705

 
$
15,962

 
Net Interest Margin
3.84
%
 
3.89
%
 
3.94
%
 
4.02
%
 
4.00
%
 
Average Diluted Shares Outstanding
52,081

 
51,935

 
51,952

 
52,039

 
51,237

 
Diluted Earnings Per Share (EPS)
$
0.52

 
$
0.49

 
$
0.45

 
$
0.44

 
$
0.31

 
Return on (annualized):
 
 
 
 
 
 
 
 
 
 
Average Assets (ROA)
1.54
%
 
1.49
%
 
1.38
%
 
1.36
%
 
0.96
%
 
Average Tangible Assets (ROTA)
1.66

 
1.61

 
1.50

 
1.48

 
1.05

 
Average Tangible Common Equity (ROTCE)
14.95

 
14.73

 
14.30

 
14.86

 
10.94

 
Efficiency Ratio
48.36

 
48.62

 
53.48

 
56.55

 
65.76

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Operating Measures1:
 
 
 
 
 
 
 
 
 
 
Adjusted Net Income
$
26,837

 
$
27,731

 
$
25,818

 
$
24,205

 
$
23,893

 
Adjusted Diluted EPS
0.52

 
0.53

 
0.50

 
0.47

 
0.47

 
Adjusted ROTA
1.57
%
 
1.67
%
 
1.59
%
 
1.50
%
 
1.49
%
 
Adjusted ROTCE
14.19

 
15.30

 
15.17

 
15.11

 
15.44

 
Adjusted Efficiency Ratio
47.52

 
48.96

 
51.44

 
55.81

 
54.19

 
Adjusted Noninterest Expense as a
Percent of Average Tangible Assets
2.11

 
2.22

 
2.34

 
2.55

 
2.46

 
 
 
 
 
 
 
 
 
 
 
 
Other Data:
 
 
 
 
 
 
 
 
 
 
Market capitalization2
$
1,574,775

 
$
1,303,010

 
$
1,309,158

 
$
1,354,759

 
$
1,336,415

 
Full-time equivalent employees
867

 
867

 
852

 
902

 
902

 
Number of ATMs
78

 
80

 
81

 
84

 
87

 
Full service banking offices
48

 
48

 
49

 
50

 
51

 
Registered online users
109,684

 
107,241

 
104,017

 
102,274

 
99,415

 
Registered mobile devices
99,361

 
96,384

 
92,281

 
87,844

 
83,151

 
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
Seacoast remains confident in the Company's ability to achieve Vision 2020 targets announced in February 2017.
 
Vision 2020 Targets
Return on Tangible Assets
1.30% +
Return on Tangible Common Equity
16% +
Efficiency Ratio
Below 50%
Since announcing Vision 2020 targets in February 2017, the Company has achieved a compounded annual growth rate in tangible book value per share of 13%, steadily building shareholder value.
Fourth Quarter and Full Year 2019 Operating Highlights
Modernizing How Seacoast Sells
In 2019, interchange income increased by $1.1 million, or 9%, compared to the prior year as Seacoast’s debit card program surpassed $1 billion in retail sales. The Company’s debit card program consistently performs in the top quartile of Visa partner banks of similar size.
Seacoast Wealth Management added approximately $140 million in new assets under management in 2019, growing 27% year-over-year. Growth in assets under management, industry leading products and investments in sales and support teams throughout the footprint resulted in a 7% increase year-over-year in wealth related revenue.
Seacoast has partnered with a leading consumer insights firm to capture and analyze feedback from customers. Program implementation and launch were completed in the third quarter of 2019, with the objective of identifying additional customer opportunities.
Lowering Cost to Serve
Seacoast consolidated three banking center locations in 2019, achieving the Vision 2020 objective of reducing the footprint by 20% to meet evolving customer needs. At December 31, 2019, deposits per banking center exceeded $116 million compared to $102 million at December 31, 2018
Driving Improvements to Operations
In 2019, Seacoast's continued focus on efficiency and streamlining operations improved adjusted noninterest expenses1 as a percent of average tangible assets to 2.11% in the fourth quarter compared to 2.46% a year ago.
Earlier this year, Seacoast further enhanced the interactive voice response (IVR) system in the Florida-based Customer Support Center. The system provides customers with secure, self-serve options and expedites call routing processes. During the fourth quarter of 2019, more than 215,000 routine customer service calls were serviced solely by the IVR system. This represented 71% of total customer service calls received. This investment should continue to provide added scalability and elevate the customer experience in 2020.
Late in 2018, Seacoast launched a large-scale initiative to implement a fully digital loan origination platform across all business banking units. In the fourth quarter of 2019, this platform enabled record loan originations in the commercial banking team. The Company recognized $350,000 in annualized expense reductions as a result of this platform implementation. This investment should lead to further gains in operational efficiency and banker productivity in 2020 and beyond.
Scaling and Evolving Seacoast's Culture
Seacoast's balanced growth strategy, combining organic growth with value-creating acquisitions, continues to benefit shareholders and provide new opportunities for associates. The pending acquisitions of First Bank of the Palm Beaches and Fourth Street Banking Company, subject to shareholder and regulatory approvals, will add experienced bankers in two growing markets and will further support the Company's sustainable and profitable growth.



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OTHER INFORMATION
Conference Call Information
Seacoast will host a conference call on January 24, 2020 at 10:00 a.m. (Eastern Time) to discuss the fourth quarter and full year 2019 earnings results and business trends. Investors may call in (toll-free) by dialing (888) 517-2513 (passcode: 7556 513; 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 January 24, 2020 by dialing (888) 843-7419 (domestic) and using passcode: 7556 513#.

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 January 24, 2020, 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 $7.1 billion in assets and $5.6 billion in deposits as of December 31, 2019. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, and 48 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.

Additional Information
Seacoast has filed a registration statement on Form S-4 with the United States Securities and Exchange Commission (the “SEC”) in connection with the proposed merger of First Bank of the Palm Beaches (“First Bank”) with and into Seacoast Bank and will file a registration statement on Form S-4 with the SEC in connection with the proposed merger of Fourth Street Banking Company (“Fourth Street”) with and into Seacoast and Freedom Bank with and into Seacoast Bank. The registration statement in connection with the First Bank merger includes a proxy statement of First Bank and a prospectus of Seacoast and the registration statement in connection with the Fourth Street merger will include a proxy statement of Fourth Street and a prospectus of Seacoast. A definitive proxy statement/prospectus will be mailed to shareholders of First Bank and Fourth Street.  This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.  WE URGE INVESTORS TO READ THE PROXY STATEMENTS/PROSPECTUSES AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE MERGERS OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENTS/PROSPECTUSES BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.

Investors may obtain (when available) these documents free of charge at the SEC’s Web site (www.sec.gov). In addition, documents filed with the SEC by Seacoast will be available free of charge by contacting Investor Relations at (772) 288-6085.

First Bank and Fourth Street, their directors, and executive officers and other members of management and employees may be considered participants in the solicitation of proxies in connection with the proposed mergers of First Bank with and into Seacoast Bank and Fourth Street with and into Seacoast. Information regarding the participants in the proxy solicitation of First Bank and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC. Information regarding the participants in the proxy solicitation of Fourth Street and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC.
 


1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.    

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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, new initiatives and for integration of banks that we have acquired, or expect to acquire, including First Bank, 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.






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The risks relating to the proposed First Bank and Fourth Street mergers include, without limitation: the timing to consummate the proposed mergers; the risk that a condition to closing of the proposed mergers may not be satisfied; the risk that a regulatory approval that may be required for the proposed mergers is not obtained or is obtained subject to conditions that are not anticipated; the diversion of management time on issues related to the proposed mergers; 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 mergers 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 disruptions, 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, 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
 
Twelve Months Ended
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Amounts in thousands, except ratios and per share data)
4Q'19
 
3Q'19
 
2Q'19
 
1Q'19
 
4Q'18
 
4Q'19
 
4Q'18
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summary of Earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
27,176

 
$
25,605

 
$
23,253

 
$
22,705

 
$
15,962

 
$
98,739

 
$
67,275

 
Adjusted net income1
26,837

 
27,731

 
25,818

 
24,205

 
23,893

 
104,591

 
79,085

 
Net interest income2
61,846

 
61,027

 
60,219

 
60,861

 
60,100

 
243,953

 
211,956

 
Net interest margin2,3
3.84
%
 
3.89
%
 
3.94
%
 
4.02
%
 
4.00
%
 
3.92
%
 
3.85
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performance Ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets-GAAP basis3
1.54
%
 
1.49
%
 
1.38
%
 
1.36
%
 
0.96
%
 
1.45
%
 
1.11
%
 
Return on average tangible assets-GAAP basis3,4
1.66

 
1.61

 
1.50

 
1.48

 
1.05

 
1.56

 
1.20

 
Adjusted return on average tangible assets1,3,4
1.57

 
1.67

 
1.59

 
1.50

 
1.49

 
1.58

 
1.35

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average shareholders' equity-GAAP basis3
11.04

 
10.73

 
10.23

 
10.47

 
7.65

 
10.63

 
9.08

 
Return on average tangible common equity-GAAP basis3,4
14.95

 
14.73

 
14.30

 
14.86

 
10.94

 
14.72

 
12.54

 
Adjusted return on average tangible common equity1,3,4
14.19

 
15.30

 
15.17

 
15.11

 
15.44

 
14.93

 
14.06

 
Efficiency ratio5
48.36

 
48.62

 
53.48

 
56.55

 
65.76

 
51.71

 
59.98

 
Adjusted efficiency ratio1
47.52

 
48.96

 
51.44

 
55.81

 
54.19

 
50.90

 
56.13

 
Noninterest income to total revenue (excluding securities gains/losses)
18.30

 
19.53

 
18.93

 
17.45

 
17.97

 
18.56

 
19.32

 
Tangible common equity to tangible assets4
11.05

 
11.05

 
10.65

 
10.18

 
9.72

 
11.05

 
9.72

 
Average loan-to-deposit ratio
90.71

 
88.35

 
87.27

 
90.55

 
89.14

 
89.21

 
85.85

 
End of period loan-to-deposit ratio
93.44

 
88.36

 
88.53

 
86.38

 
93.43

 
93.44

 
93.43

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Per Share Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income diluted-GAAP basis
$
0.52

 
$
0.49

 
$
0.45

 
$
0.44

 
$
0.31

 
$
1.90

 
$
1.38

 
Net income basic-GAAP basis
0.53

 
0.50

 
0.45

 
0.44

 
0.32

 
1.92

 
1.40

 
Adjusted earnings1
0.52

 
0.53

 
0.50

 
0.47

 
0.47

 
2.01

 
1.62

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Book value per share common
19.13

 
18.70

 
18.08

 
17.44

 
16.83

 
19.13

 
16.83

 
Tangible book value per share
14.76

 
14.30

 
13.65

 
12.98

 
12.33

 
14.76

 
12.33

 
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
 
Twelve Months Ended
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Amounts in thousands, except per share data)
4Q'19
 
3Q'19
 
2Q'19
 
1Q'19
 
4Q'18
 
4Q'19
 
4Q'18
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest on securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
$
8,500

 
$
8,802

 
$
8,933

 
$
9,119

 
$
9,528

 
$
35,354

 
$
37,860

 
Nontaxable
130

 
131

 
143

 
151

 
200

 
555

 
884

 
Interest and fees on loans
62,868

 
63,092

 
62,288

 
62,287

 
59,495

 
250,535

 
199,984

 
Interest on federal funds sold and other investments
788

 
800

 
873

 
918

 
835

 
3,379

 
2,670

 
Total Interest Income
72,286

 
72,825

 
72,237

 
72,475

 
70,058

 
289,823

 
241,398

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest on deposits
3,589

 
4,334

 
4,825

 
3,873

 
3,140

 
16,621

 
8,763

 
Interest on time certificates
5,084

 
6,009

 
5,724

 
4,959

 
3,901

 
21,776

 
11,684

 
Interest on borrowed money
1,853

 
1,534

 
1,552

 
2,869

 
3,033

 
7,808

 
9,436

 
Total Interest Expense
10,526

 
11,877

 
12,101

 
11,701

 
10,074

 
46,205

 
29,883

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Interest Income
61,760

 
60,948

 
60,136

 
60,774

 
59,984

 
243,618

 
211,515

 
Provision for loan losses
4,800

 
2,251

 
2,551

 
1,397

 
2,342

 
10,999

 
11,730

 
Net Interest Income After Provision for Loan Losses
56,960

 
58,697

 
57,585

 
59,377

 
57,642

 
232,619

 
199,785

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service charges on deposit accounts
2,960

 
2,978

 
2,894

 
2,697

 
3,019

 
11,529

 
11,198

 
Trust fees
1,096

 
1,183

 
1,147

 
1,017

 
1,040

 
4,443

 
4,183

 
Mortgage banking fees
1,514

 
2,127

 
1,734

 
1,115

 
809

 
6,490

 
4,682

 
Brokerage commissions and fees
483

 
449

 
541

 
436

 
468

 
1,909

 
1,732

 
Marine finance fees
338

 
153

 
201

 
362

 
185

 
1,054

 
1,398

 
Interchange income
3,387

 
3,206

 
3,405

 
3,401

 
3,198

 
13,399

 
12,335

 
BOLI income
904

 
928

 
927

 
915

 
1,091

 
3,674

 
4,291

 
SBA gains
576

 
569

 
691

 
636

 
519

 
2,472

 
2,474

 
Other
2,579

 
3,197

 
2,503

 
2,266

 
2,810

 
10,545

 
8,352

 
 
13,837

 
14,790

 
14,043

 
12,845

 
13,139

 
55,515

 
50,645

 
Securities gains/(losses), net
2,539

 
(847
)
 
(466
)
 
(9
)
 
(425
)
 
1,217

 
(623
)
 
Total Noninterest Income
16,376

 
13,943

 
13,577

 
12,836

 
12,714

 
56,732

 
50,022

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and wages
17,263

 
18,640

 
19,420

 
18,506

 
22,172

 
73,829

 
71,111

 
Employee benefits
3,323

 
2,973

 
3,195

 
4,206

 
3,625

 
13,697

 
12,945

 
Outsourced data processing costs
3,645

 
3,711

 
3,876

 
3,845

 
5,809

 
15,077

 
16,374

 
Telephone / data lines
651

 
603

 
893

 
811

 
602

 
2,958

 
2,481

 
Occupancy
3,368

 
3,368

 
3,741

 
3,807

 
3,747

 
14,284

 
13,394

 
Furniture and equipment
1,416

 
1,528

 
1,544

 
1,757

 
2,452

 
6,245

 
6,744

 
Marketing
885

 
933

 
1,211

 
1,132

 
1,350

 
4,161

 
5,085

 
Legal and professional fees
2,025

 
1,648

 
2,033

 
2,847

 
3,668

 
8,553

 
9,961

 
FDIC assessments
0

 
56

 
337

 
488

 
571

 
881

 
2,195

 
Amortization of intangibles
1,456

 
1,456

 
1,456

 
1,458

 
1,303

 
5,826

 
4,300

 
Foreclosed property expense and net (gain)/loss on sale
3

 
262

 
(174
)
 
(40
)
 
0

 
51

 
461

 
Other
4,022

 
3,405

 
3,468

 
4,282

 
4,165

 
15,177

 
17,222

 
Total Noninterest Expense
38,057

 
38,583

 
41,000

 
43,099

 
49,464

 
160,739

 
162,273

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Before Income Taxes
35,279

 
34,057

 
30,162

 
29,114

 
20,892

 
128,612

 
87,534

 
Income taxes
8,103

 
8,452

 
6,909

 
6,409

 
4,930

 
29,873

 
20,259

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income
$
27,176

 
$
25,605

 
$
23,253

 
$
22,705

 
$
15,962

 
$
98,739

 
$
67,275

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Per share of common stock:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income diluted
$
0.52

 
$
0.49

 
$
0.45

 
$
0.44

 
$
0.31

 
$
1.90

 
$
1.38

 
Net income basic
0.53

 
0.50

 
0.45

 
0.44

 
0.32

 
1.92

 
1.40

 
Cash dividends declared

 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average diluted shares outstanding
52,081

 
51,935

 
51,952

 
52,039

 
51,237

 
52,029

 
48,748

 
Average basic shares outstanding
51,517

 
51,473

 
51,446

 
51,359

 
50,523

 
51,449

 
47,969

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





CONDENSED CONSOLIDATED BALANCE SHEETS
 
(Unaudited)
 
 
 
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
 
 
 
 
 
 
 
 
 
 
 
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
(Amounts in thousands)
 
2019
 
2019
 
2019
 
2019
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
89,843

 
$
106,349

 
$
97,792

 
$
98,270

 
$
92,242

 
Interest bearing deposits with other banks
 
34,688

 
25,911

 
61,987

 
105,741

 
23,709

 
Total Cash and Cash Equivalents
 
124,531

 
132,260

 
159,779

 
204,011

 
115,951

 
 
 
 
 
 
 
 
 
 
 
 
 
Time deposits with other banks
 
3,742

 
4,579

 
4,980

 
8,174

 
8,243

 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Securities:
 
 
 
 
 
 
 
 
 
 
 
Available for sale (at fair value)
 
946,855

 
920,811

 
914,615

 
877,549

 
865,831

 
Held to maturity (at amortized cost)
 
261,369

 
273,644

 
287,302

 
295,485

 
357,949

 
Total Debt Securities
 
1,208,224

 
1,194,455

 
1,201,917

 
1,173,034

 
1,223,780

 
 
 
 
 
 
 
 
 
 
 
 
 
Loans held for sale
 
20,029

 
26,768

 
17,513

 
13,900

 
11,873

 
 
 
 
 
 
 
 
 
 
 
 
 
Loans
 
5,198,404

 
4,986,289

 
4,888,139

 
4,828,441

 
4,825,214

 
Less: Allowance for loan losses
 
(35,154
)
 
(33,605
)
 
(33,505
)
 
(32,822
)
 
(32,423
)
 
Net Loans
 
5,163,250

 
4,952,684

 
4,854,634

 
4,795,619

 
4,792,791

 
 
 
 
 
 
 
 
 
 
 
 
 
Bank premises and equipment, net
 
66,615

 
67,873

 
68,738

 
70,412

 
71,024

 
Other real estate owned
 
12,390

 
13,593

 
11,043

 
11,921

 
12,802

 
Goodwill
 
205,286

 
205,286

 
205,260

 
205,260

 
204,753

 
Other intangible assets, net
 
20,066

 
21,318

 
22,672

 
23,959

 
25,977

 
Bank owned life insurance
 
126,181

 
125,277

 
125,233

 
124,306

 
123,394

 
Net deferred tax assets
 
16,457

 
17,168

 
19,353

 
24,647

 
28,954

 
Other assets
 
141,740

 
129,384

 
133,764

 
128,146

 
128,117

 
Total Assets
 
$
7,108,511

 
$
6,890,645

 
$
6,824,886

 
$
6,783,389

 
$
6,747,659

 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Deposits
 
 
 
 
 
 
 
 
 
 
 
Noninterest demand
 
$
1,590,493

 
$
1,652,927

 
$
1,669,804

 
$
1,676,009

 
$
1,569,602

 
Interest-bearing demand
 
1,181,732

 
1,115,455

 
1,124,519

 
1,100,477

 
1,014,032

 
Savings
 
519,152

 
528,214

 
519,732

 
508,320

 
493,807

 
Money market
 
1,108,363

 
1,158,862

 
1,172,971

 
1,192,070

 
1,173,950

 
Other time certificates
 
504,837

 
537,183

 
553,107

 
539,202

 
513,312

 
Brokered time certificates
 
472,857

 
458,418

 
268,998

 
367,841

 
220,594

 
Time certificates of more than $250,000
 
207,319

 
222,082

 
232,078

 
221,659

 
191,943

 
Total Deposits
 
5,584,753

 
5,673,141

 
5,541,209

 
5,605,578

 
5,177,240

 
 
 
 
 
 
 
 
 
 
 
 
 
Securities sold under agreements to repurchase
 
86,121

 
70,414

 
82,015

 
148,005

 
214,323

 
Federal Home Loan Bank borrowings
 
315,000

 
50,000

 
140,000

 
3,000

 
380,000

 
Subordinated debt
 
71,085

 
71,014

 
70,944

 
70,874

 
70,804

 
Other liabilities
 
65,913

 
63,398

 
60,479

 
59,508

 
41,025

 
Total Liabilities
 
6,122,872

 
5,927,967

 
5,894,647

 
5,886,965

 
5,883,392

 
 
 
 
 
 
 
 
 
 
 
 
 
Shareholders' Equity
 
 
 
 
 
 
 
 
 
 
 
Common stock
 
5,151

 
5,148

 
5,146

 
5,141

 
5,136

 
Additional paid in capital
 
786,242

 
784,661

 
782,928

 
780,680

 
778,501

 
Retained earnings
 
195,813

 
168,637

 
143,032

 
119,779

 
97,074

 
Treasury stock
 
(6,032
)
 
(6,079
)
 
(6,137
)
 
(4,959
)
 
(3,384
)
 
 
 
981,174

 
952,367

 
924,969

 
900,641

 
877,327

 
Accumulated other comprehensive income/(loss), net
 
4,465

 
10,311

 
5,270

 
(4,217
)
 
(13,060
)
 
Total Shareholders' Equity
 
985,639

 
962,678

 
930,239

 
896,424

 
864,267

 
Total Liabilities & Shareholders' Equity
 
$
7,108,511

 
$
6,890,645

 
$
6,824,886

 
$
6,783,389

 
$
6,747,659

 
 
 
 
 
 
 
 
 
 
 
 
 
Common shares outstanding
 
51,514

 
51,482

 
51,461

 
51,414

 
51,361

 
 
 
 
 
 
 
 
 
 
 
 
 






CONSOLIDATED QUARTERLY FINANCIAL DATA
(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Amounts in thousands)
4Q'19
 
3Q'19
 
2Q'19
 
1Q'19
 
4Q'18
 
 
 
 
 
 
 
 
 
 
Credit Analysis
 
 
 
 
 
 
 
 
 
Net charge-offs (recoveries) - non-acquired loans
$
2,930

 
$
2,106

 
$
1,621

 
$
762

 
$
3,693

Net charge-offs (recoveries) - acquired loans
295

 
5

 
220

 
201

 
56

Total Net Charge-offs (Recoveries)
3,225

 
2,111

 
1,841

 
963

 
3,749

 
 
 
 
 
 
 
 
 
 
TDR valuation adjustments
$
27

 
$
40

 
$
27

 
$
35

 
$
35

 
 
 
 
 
 
 
 
 
 
Net charge-offs (recoveries) to average loans - non-acquired loans
0.23
%
 
0.17
%
 
0.13
%
 
0.06
%
 
0.32
%
Net charge-offs (recoveries) to average loans - acquired loans
0.02

 

 
0.02

 
0.02

 

Total Net Charge-offs (Recoveries) to Average Loans
0.25

 
0.17

 
0.15

 
0.08

 
0.32

 
 
 
 
 
 
 
 
 
 
Provision for loan losses - non-acquired loans
$
4,041

 
$
2,241

 
$
2,326

 
$
1,709

 
$
2,343

Provision for (recapture of) loan losses - acquired loans
759

 
10

 
225

 
(312
)
 
(1
)
Total Provision for Loan Losses
$
4,800

 
$
2,251

 
$
2,551

 
$
1,397

 
$
2,342

 
 
 
 
 
 
 
 
 
 
Allowance for loan losses - non-acquired loans
$
34,573

 
$
33,488

 
$
33,393

 
$
32,715

 
$
31,803

Allowance for loan losses - acquired loans
581

 
117

 
112

 
107

 
620

Total Allowance for Loan Losses
$
35,154

 
$
33,605

 
$