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Section 1: 8-K (FORM 8-K)

Document
false0000730708 0000730708 2019-10-24 2019-10-24



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) October 24, 2019

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 October 24, 2019, Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”) announced its financial results for the quarter ended September 30, 2019.
A copy of the press release announcing Seacoast’s results for the quarter ended September 30, 2019 is attached hereto as Exhibit 99.1 and incorporated herein by reference.

Item 7.01    Regulation FD Disclosure

On October 25, 2019, Seacoast will hold an investor conference call to discuss its financial results for the quarter ended September 30, 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 September 30, 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
 
 

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:  October 24, 2019
/s/ Charles M. Shaffer
 
CHARLES M. SHAFFER
 
Chief Operating Officer and Chief Financial Officer






EXHIBIT INDEX


Exhibit No.
 
Description
 
 



(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

SBCF 3Q 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 THIRD QUARTER 2019 EARNINGS RESULTS
Net Income Increased 57% Year-Over-Year to $25.6 Million
Improved Operating Leverage and Strong Performance in Both Commercial and Mortgage Banking Highlight 3Q Results

STUART, Fla., October 24, 2019 /GLOBE NEWSWIRE/ -- Seacoast Banking Corporation of Florida (“Seacoast” or the "Company”) (NASDAQ: SBCF) today reported third quarter 2019 net income of $25.6 million, or $0.49 per diluted share, up 57% or $9.3 million year-over-year. Seacoast reported third quarter 2019 adjusted net income1 of $27.7 million, or $0.53 per diluted share, an increase of 57% or $10.1 million compared to the third quarter of 2018.

For the third quarter of 2019, return on average tangible assets was 1.61%, return on average tangible shareholders’ equity was 14.7%, and the efficiency ratio was 48.6%, compared to 1.50%, 14.3% and 53.5%, respectively, in the prior quarter and 1.18%, 12.0%, and 57.0%, respectively, in the third quarter of 2018. Adjusted return on average tangible assets1 was 1.67%, adjusted return on average tangible shareholders’ equity1 was 15.3%, and the adjusted efficiency ratio1 was 49.0%, compared to 1.59%, 15.2%, and 51.4%, respectively, in the prior quarter, and 1.22%, 12.4%, and 56.3%, respectively, in the third quarter of 2018

Dennis S. Hudson, III, Seacoast’s Chairman and CEO, said, "During the third quarter, Seacoast reported a record $25.6 million in net income. Both our mortgage and commercial banking units showed continued momentum in the quarter, with robust loan originations generating disciplined growth in loan outstandings and a new record in mortgage banking fees. We are generating this growth and improving our operating leverage, all while delivering a highly disciplined credit portfolio."

Charles M. Shaffer, Seacoast’s Chief Operating Officer and Chief Financial Officer, said, “We continue to steadily build shareholder value through consistent growth in our tangible book value per share, ending the period at $14.30, an increase of 19% compared to one year prior. Year to date, we have generated 11% operating leverage, with adjusted revenues1 increasing 18%, and adjusted noninterest expense1 increasing 7%, in spite of a more challenging interest rate environment. Despite two reductions in the Federal Reserve overnight rate and a declining 10-year treasury rate, our net interest margin, excluding the discount on purchased loans, decreased only 3 basis points, a testament to the high quality balance sheet we continue to cultivate. This balance sheet is fortified with a robust capital base, strong asset quality, and a prudent liquidity position. We ended the quarter with a tangible common equity ratio of 11.1% supporting our ability to deploy capital for organic growth and opportunistic acquisitions. As the banking and economic cycle continues to mature, Seacoast is committed to maintaining its fortress balance sheet, built around strong capital and strict credit underwriting.”

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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Third Quarter 2019 Financial Highlights
Income Statement
Net income was $25.6 million, or $0.49 per diluted share, compared to $23.3 million, or $0.45, for the prior quarter and $16.3 million, or $0.34, for the third quarter of 2018. For the nine months ended September 30, 2019, net income was $71.6 million, or $1.38 per diluted share, compared to $51.3 million, or $1.07, for the nine months ended September 30, 2018. Adjusted net income1 was $27.7 million, or $0.53 per diluted share, compared to $25.8 million, or $0.50, for the prior quarter and $17.6 million, or $0.37, for the third quarter of 2018. For the nine months ended September 30, 2019, adjusted net income1 was $77.8 million, or $1.50 per diluted share, compared to $55.2 million, or $1.15, for the nine months ended September 30, 2018.
Net revenues were $74.9 million, an increase of $1.2 million, or 2%, compared to the prior quarter, and an increase of $11.0 million, or 17%, compared to the third quarter of 2018. For the nine months ended September 30, 2019, net revenues were $222.2 million, an increase of $33.4 million, or 18%, compared to the nine months ended September 30, 2018. Adjusted revenues1 were $74.8 million, an increase of $0.6 million, or 1%, from the prior quarter and an increase of $10.9 million, or 17%, from the third quarter of 2018. For the nine months ended September 30, 2019, adjusted revenues1 were $222.6 million, an increase of $33.5 million, or 18%, compared to the nine months ended September 30, 2018.
Net interest income totaled $60.9 million, an increase of $0.8 million, or 1%, from the prior quarter and an increase of $9.4 million, or 18%, from the third quarter of 2018. For the nine months ended September 30, 2019, net interest income was $181.9 million, an increase of $30.3 million, or 20%, compared to the nine months ended September 30, 2018.
Net interest margin was 3.89% in the third quarter of 2019, 3.94% in the second quarter of 2019 and 3.82% in the third quarter of 2018. Quarter-over-quarter, the yield on loans contracted 10 basis points, the yield on securities contracted 4 basis points, and the cost of deposits decreased 3 basis points. The impact on net interest margin from accretion of purchase discounts on acquired loans was 25 basis points in the third quarter of 2019, compared to 27 basis points in the prior quarter and 18 basis points in the third quarter of 2018. The Federal Reserve reduced the overnight rate twice by 25 basis points during the third quarter and the 10-year treasury rate fell by approximately 30 basis points, resulting in lower new earning asset yields and further declines in our variable rate earning asset portfolios. This was partially offset by our success in lowering the cost of funding, the result of our focus on maintaining deposit pricing discipline.
Noninterest income totaled $13.9 million, an increase of $0.4 million, or 3%, compared to the prior quarter and an increase of $1.7 million, or 13%, from the third quarter of 2018. For the nine months ended September 30, 2019, noninterest income was $40.4 million, an increase of $3.0 million, or 8%, compared to the nine months ended September 30, 2018. Changes in noninterest income from the second quarter of 2019 consisted of the following:
Mortgage banking fees increased by $0.4 million, reflecting the combination of increased refinance activity due to lower long term rates and a greater focus on generating saleable volume.
Interchange income decreased by $0.2 million, reflecting lower customer activity as a result of Hurricane Dorian.
Other noninterest income includes a $1.0 million BOLI death benefit.
During the quarter, $49.6 million of securities were sold with an average yield of 1.85%, resulting in a loss of $0.9 million. These funds were reinvested at an average yield of 2.65%.
The provision for loan losses was $2.3 million compared to $2.6 million in the prior quarter and $5.8 million in the third quarter of 2018.
Noninterest expense was $38.6 million, a decrease of $2.4 million, or 6%, compared to the prior quarter, the result of our proven success at disciplined cost control, and an increase of $1.2 million, or 3%, from the third quarter of 2018. For the nine months ended September 30, 2019, noninterest expense was $122.7 million, an increase of $9.9 million, or 9%, compared to the nine months ended September 30, 2018. Changes from the second quarter of 2019 in noninterest expense consisted of the following:

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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Salaries and wages decreased by $0.8 million. The second quarter's results included $1.1 million of one-time severance costs associated with the previously announced expense reduction initiative. Offsetting in the current quarter were additional incentives aligned with driving continued earnings growth.
Our continued proactive focus on efficiency and streamlining operations resulted in an additional $1.4 million in operating expense reductions from several expense categories, including $0.4 million in occupancy, $0.4 million in legal and professional fees, $0.3 million in telephone and data lines and $0.3 million in marketing.
During the third quarter, the FDIC announced the achievement of their target deposit insurance reserve ratio, resulting in our ability to apply previously awarded credits to our deposit insurance assessment. This resulted in $0.3 million in lower FDIC assessment expense for the quarter. The Company has remaining credits of $1.2 million, which will be applied to future assessments if the FDIC’s reserve ratio remains above the target threshold.
In late August, communities across our footprint prepared for the potential landfall of Hurricane Dorian. To ensure the safety of our associates and customers and to maintain uninterrupted digital and telephone access for our customers, we executed on our business continuity plans, transitioned operational activities to our backup facility, and closed our branches and corporate offices for one business day. Florida was ultimately spared a direct hit and our expenses, which were limited to preparing physical locations and to standing up the offsite operations hub, totaled $0.1 million.
Seacoast recorded $8.5 million in income tax expense in the third quarter of 2019, compared to $6.9 million in the prior quarter and $4.4 million in the third quarter of 2018. In September 2019, the State of Florida announced a reduction in the corporate income tax rate from 5.5% to 4.458% for the years 2019, 2020 and 2021. This change resulted in additional income tax expense of $1.1 million upon the write down of deferred tax assets affected by the change, offset by a $0.4 million benefit upon adjusting the year-to-date provision to the new statutory tax rate.  Tax benefits related to stock-based compensation were negligible in the third quarter of 2019, compared to $0.1 million in the prior quarter and $0.4 million in the third quarter of 2018.
Year to date adjusted revenues1 increased 18% compared to prior year while adjusted noninterest expense1 increased 7%, generating 11% operating leverage.
The efficiency ratio was 48.6% compared to 53.5% in the prior quarter and 57.0% in the third quarter of 2018. The adjusted efficiency ratio1 was 49.0% compared to 51.4% in the prior quarter and 56.3% in the third quarter of 2018. The reduction in both ratios was the outcome of our continued focus on streamlining operations, in combination with driving top-line revenue growth.

Balance Sheet
At September 30, 2019, the Company had total assets of $6.9 billion and total shareholders' equity of $962.7 million. Book value per share was $18.70 and tangible book value per share was $14.30, compared to $18.08 and $13.65, respectively, at June 30, 2019 and $15.50 and $12.01, respectively, at September 30, 2018. Year-over-year, tangible book value per share increased 19%, evidencing our commitment to building shareholder value.
Debt securities totaled $1.2 billion at September 30, 2019, a decrease of $7.5 million compared to the prior quarter and a decrease of $96.1 million from September 30, 2018. During the quarter, $49.6 million of securities were sold, with an average yield of 1.85%, resulting in a loss of $0.9 million. Purchases of securities during the quarter totaled $77.0 million at an average yield of 2.65%.
Loans totaled $5.0 billion at September 30, 2019, an increase of $98.2 million, or 2.0%, compared to the prior quarter, and an increase of $927.0 million, or 23%, from September 30, 2018. Changes in total loans consisted of the following:
New loan originations of $488 million, compared to $407 million in the prior quarter, resulted in net loan growth in the quarter of 8% on an annualized basis. Excluding the impact of the First Green acquisition in October 2018, loan outstandings have grown 7% year-over-year.

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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Commercial originations during the third quarter of 2019 were $282.2 million, an increase of $125.3 million, or 80%, compared to the second quarter of 2019 and an increase of $151.2 million, or 115%, compared to the third quarter of 2018. Increases in loan production reflect the addition of business bankers across the Company's footprint, solid execution by the legacy banking team, and higher customer loan demand due to lower long term interest rates. The third quarter of 2019 results include the opportunistic purchase of a $52.1 million commercial real estate loan portfolio.
Closed residential loans retained in the portfolio for the third quarter of 2019 were $22.4 million, down 57% from the second quarter of 2019 and down 72% from the third quarter of 2018. Closed residential loans sold for the third quarter of 2019 were $80.8 million, up 32% from the second quarter of 2019 and up 45% from the third quarter of 2018.
Consumer and small business originations for the third quarter of 2019 were $103.1 million, a decrease of 24% compared to the second quarter of 2019 and a decrease of 18% compared to the third quarter of 2018.
We continue to manage carefully the Company's exposure to commercial real estate. Construction and land development and commercial real estate loans remain well below regulatory guidance at 42% and 204% of total bank-level risk based capital, respectively, down from 51% and 205%, respectively, in the second quarter of 2019. On a consolidated basis, construction and land development and commercial real estate loans represent 39% and 191%, respectively, of total consolidated risk based capital.
The funded balances of our top 10 and top 20 relationships represented 19% and 33%, respectively, of total consolidated risk based capital, down from 21% and 38% compared to the third quarter of 2018 and down from 32% and 53% compared to the third quarter of 2016. Our largest committed exposure totals $30 million and our average commercial loan size is $350,000.
Pipelines (loans in underwriting and approval or approved and not yet closed) increased over the prior quarter, totaling $504.6 million as of September 30, 2019.
Commercial pipelines were $359.7 million, an increase of 38% sequentially and 83% compared to the prior year.
Retained residential pipelines were $43.4 million, significantly higher than the prior quarter, the result of a test launch of a correspondent mortgage banking channel focused on acquiring mass affluent, affluent and ultra-high net worth Florida customers.
Saleable residential pipelines were $35.1 million, a decrease of 25% sequentially and an increase of 94% compared to the prior year. The decrease in the saleable pipeline from the prior quarter reflects slowing refinance activity late in the quarter.
Consumer and small business pipelines were $66.3 million, an increase of 1% sequentially and an increase of 11% compared to the prior year.     
Total deposits were $5.7 billion as of September 30, 2019, an increase of $131.9 million, or 2%, sequentially and an increase of $1.0 billion, or 22%, from the prior year.
Interest-bearing deposits (interest-bearing demand, savings and money market deposits) increased year-over-year $400.7 million, or 17%, to $2.8 billion, noninterest bearing demand deposits increased $164.2 million, or 11%, to $1.7 billion, and CDs increased $464.7 million, or 62%, to $1.2 billion.
Third quarter balances reflect an increase from the prior quarter of $189.4 million in brokered deposits. We continue to actively manage our mix of brokered deposits and advances from the Federal Home Loan Bank to obtain the most advantageous rates.
Overall cost of deposits decreased to 73 basis points from 76 basis points in the prior quarter, reflecting the impact of the Federal Reserve's interest rate cuts and our focus on maintaining deposit pricing discipline.
Third quarter return on average tangible assets (ROTA) was 1.61%, compared to 1.50% in the prior quarter and 1.18% in the third quarter of 2018. Adjusted ROTA1 was 1.67% compared to 1.59% in the prior quarter and 1.22% in the third quarter of 2018.

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
Third quarter return on average tangible common equity (ROTCE) was 14.7%, compared to 14.3% in the prior quarter and 12.0% in the third quarter of 2018. Adjusted ROTCE1 was 15.3% compared to 15.2% in the prior quarter and 12.4% in the third quarter of 2018.
The tier 1 capital ratio was 14.9%, total capital ratio was 15.5% and the tier 1 leverage ratio was 12.0% at September 30, 2019.
Tangible common equity to tangible assets was 11.1% at September 30, 2019, compared to 10.7% at June 30, 2019 and 9.9% at September 30, 2018.
Asset Quality
Nonperforming loans to total loans outstanding was 0.52% at September 30, 2019, 0.47% at June 30, 2019, and 0.64% at September 30, 2018.
Nonperforming assets to total assets was 0.58% at September 30, 2019, 0.50% at June 30, 2019 and 0.52% at September 30, 2018. Nonperforming assets increased by $5.8 million to $39.6 million in the third quarter of 2019, primarily the result of five customer relationships moving to nonperforming status, all of which are either fully collateralized or previously written down to realizable values.
The ratio of allowance for loan losses to total loans was 0.67% at September 30, 2019, 0.69% at June 30, 2019, and 0.83% at September 30, 2018. The ratio of allowance for loan losses to non-acquired loans was 0.84% at September 30, 2019, 0.87% at June 30, 2019, and 0.98% at September 30, 2018.
Net charge-offs were $2.1 million or 0.17% of average loans for the third quarter of 2019 compared to $1.8 million, or 0.15% of average loans in the prior quarter.

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
 
 
 
(Unaudited)
 
 
 
 
(Amounts in thousands except per share data)
 
 
 
 
 
 
 
 
 
 
Quarterly Trends
 
 
 
 
 
 
 
 
 
 
 
 
 
3Q'19
 
2Q'19
 
1Q'19
 
4Q'18
 
3Q'18
 
Selected Balance Sheet Data:
 
 
 
 
 
 
 
 
 
 
Total Assets
$
6,890,645

 
$
6,824,886

 
$
6,783,389

 
$
6,747,659

 
$
5,930,934

 
Gross Loans
4,986,289

 
4,888,139

 
4,828,441

 
4,825,214

 
4,059,323

 
Total Deposits
5,673,141

 
5,541,209

 
5,605,578

 
5,177,240

 
4,643,510

 
 
 
 
 
 
 
 
 
 
 
 
Performance Measures:
 
 
 
 
 
 
 
 
 
 
Net Income
$
25,605

 
$
23,253

 
$
22,705

 
$
15,962

 
$
16,322

 
Net Interest Margin
3.89
%
 
3.94
%
 
4.02
%
 
4.00
%
 
3.82
%
 
Average Diluted Shares Outstanding
51,935

 
51,952

 
52,039

 
51,237

 
48,029

 
Diluted Earnings Per Share (EPS)
$
0.49

 
$
0.45

 
$
0.44

 
$
0.31

 
$
0.34

 
Return on (annualized):
 
 
 
 
 
 
 
 
 
 
Average Assets (ROA)
1.49
%
 
1.38
%
 
1.36
%
 
0.96
%
 
1.10
%
 
Average Tangible Assets (ROTA)
1.61

 
1.50

 
1.48

 
1.05

 
1.18

 
Average Tangible Common Equity (ROTCE)
14.73

 
14.30

 
14.86

 
10.94

 
12.04

 
Efficiency Ratio
48.62

 
53.48

 
56.55

 
65.76

 
57.04

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Operating Measures1:
 
 
 
 
 
 
 
 
 
 
Adjusted Net Income
$
27,731

 
$
25,818

 
$
24,205

 
$
23,893

 
$
17,626

 
Adjusted Diluted EPS
0.53

 
0.50

 
0.47

 
0.47

 
0.37

 
Adjusted ROTA
1.67
%
 
1.59
%
 
1.50
%
 
1.49
%
 
1.22
%
 
Adjusted ROTCE
15.30

 
15.17

 
15.11

 
15.44

 
12.43

 
Adjusted Efficiency Ratio
48.96

 
51.44

 
55.81

 
54.19

 
56.29

 
Adjusted Noninterest Expenses as a
 
 
 
 
 
 
 
 
 
 
Percent of Average Tangible Assets
2.22

 
2.34

 
2.55

 
2.46

 
2.48

 
 
 
 
 
 
 
 
 
 
 
 
Other Data:
 
 
 
 
 
 
 
 
 
 
Market capitalization2
$
1,303,010

 
$
1,309,158

 
$
1,354,759

 
$
1,336,415

 
$
1,380,275

 
Full-time equivalent employees
867

 
852

 
902

 
902

 
835

 
Number of ATMs
80

 
81

 
84

 
87

 
86

 
Full service banking offices
48

 
49

 
50

 
51

 
49

 
Registered online users
107,241

 
104,017

 
102,274

 
99,415

 
94,400

 
Registered mobile devices
96,384

 
92,281

 
87,844

 
83,151

 
73,300

 
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







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Vision 2020
We remain confident in our ability to achieve our 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 our Vision 2020 targets in February 2017, we have achieved a compounded annual growth rate in tangible book value per share of 13%, steadily building shareholder value.
Third Quarter Operating Highlights
Modernizing How We Sell
During the quarter the Company achieved record commercial and residential loan originations and pipelines are strong entering the fourth quarter.
Late in the quarter, the Company began testing a correspondent mortgage banking channel focused on acquiring mass affluent, affluent, and ultra-high net worth Florida customers. Our objective is to acquire customers using this channel and expand the value of these high quality relationships using data driven analytics.
Seacoast has partnered with a leading consumer insights firm to capture and analyze feedback from our customers. Program implementation and launch were completed in the third quarter with the objective of identifying additional customer opportunities.
Lowering Our Cost to Serve
In the third quarter of 2019, average deposits per banking center exceeded $118.2 million, up from $94.8 million during the same period last year.
Seacoast consolidated one banking center location in the third quarter of 2019, in addition to the two locations consolidated earlier this year.
Seacoast has reduced its physical footprint by 20% to meet the evolving needs of customers in the most cost-effective manner. This reduction was achieved ahead of plan due to successful M&A and the repositioning of the banking center network in strategic growth markets.
Driving Improvements in How Our Business Operates
Earlier this year Seacoast further enhanced its interactive voice response (IVR) system in its Florida-based Customer Support Center. The system provides customers with additional secure, self-serve options and expedited call routing processes. This investment provides added scalability and elevates the customer experience.
Late last year Seacoast launched a large-scale initiative to implement a fully digital loan origination platform across all business banking units. Implementation and launch were completed in the second quarter and full conversion from the legacy system was completed in the third quarter. This investment should lead to further gains in operational efficiency and banker productivity in 2020 and beyond.
Scaling and Evolving Our Culture
Seacoast continues to invest in business bankers. In the third quarter Seacoast on-boarded three new bankers, 18 year to date, in order to fully support the strong markets we serve. Seacoast has a robust pipeline of talent entering the fourth quarter of 2019 and will continue to opportunistically add top-tier bankers in the Tampa and South Florida markets.





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OTHER INFORMATION
Conference Call Information
Seacoast will host a conference call on October 25, 2019 at 10:00 a.m. (Eastern Time) to discuss the third quarter 2019 earnings results and business trends. Investors may call in (toll-free) by dialing (888) 517-2513 (passcode: 6648 701; 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 October 25, 2019 by dialing (888) 843-7419 (domestic) and using passcode: 6648 701#.

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 October 25, 2019, an archived version of the webcast can be accessed from this same subsection of the website. The archived webcast will be available for one year.

About Seacoast Banking Corporation of Florida (NASDAQ: SBCF)
Seacoast Banking Corporation of Florida is one of the largest community banks headquartered in Florida with approximately $6.9 billion in assets and $5.7 billion in deposits as of September 30, 2019. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, and 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.

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, 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





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institutions that adversely affect us or the banking industry; our concentration in commercial real estate loans; the failure of assumptions and estimates, as well as differences in, and changes to, economic, market and credit conditions; the impact on the valuation of our investments due to market volatility or counterparty payment risk; statutory and regulatory dividend restrictions; increases in regulatory capital requirements for banking organizations generally; the risks of mergers, acquisitions and divestitures, including our ability to continue to identify acquisition targets and successfully acquire desirable financial institutions; changes in technology or products that may be more difficult, costly, or less effective than anticipated; our ability to identify and address increased cybersecurity risks; inability of our risk management framework to manage risks associated with our business; dependence on key suppliers or vendors to obtain equipment or services for our business on acceptable terms; reduction in or the termination of our ability to use the mobile-based platform that is critical to our business growth strategy; the effects of war or other conflicts, acts of terrorism, natural disasters or other catastrophic events that may affect general economic conditions; unexpected outcomes of, and the costs associated with, existing or new litigation involving us; our ability to maintain adequate internal controls over financial reporting; potential claims, damages, penalties, fines and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions; the risks that our deferred tax assets could be reduced if estimates of future taxable income from our operations and tax planning strategies are less than currently estimated and sales of our capital stock could trigger a reduction in the amount of net operating loss carryforwards that we may be able to utilize for income tax purposes; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market areas and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the Internet; and the failure of assumptions underlying the establishment of reserves for possible loan losses.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2018, under "Special Cautionary Notice Regarding Forward-looking Statements" and "Risk Factors", and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at www.sec.gov.








FINANCIAL HIGHLIGHTS
(Unaudited)
 
 
 
 
 
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
 
 
 
 
 
 
 
 
 
 
 
Quarterly Trends
 
Nine Months Ended
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Amounts in thousands, except ratios and per share data)
3Q'19
 
2Q'19
 
1Q'19
 
4Q'18
 
3Q'18
 
3Q'19
 
3Q'18
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summary of Earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
25,605

 
$
23,253

 
$
22,705

 
$
15,962

 
$
16,322

 
$
71,563

 
$
51,313

 
Adjusted net income1
27,731

 
25,818

 
24,205

 
23,893

 
17,626

 
77,754

 
55,192

 
Net interest income2
61,027

 
60,219

 
60,861

 
60,100

 
51,709

 
182,107

 
151,856

 
Net interest margin2,3
3.89
%
 
3.94
%
 
4.02
%
 
4.00
%
 
3.82
%
 
3.95
%
 
3.79
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performance Ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets-GAAP basis3
1.49
%
 
1.38
%
 
1.36
%
 
0.96
%
 
1.10
%
 
1.41
%
 
1.17
%
 
Return on average tangible assets-GAAP basis3,4
1.61

 
1.50

 
1.48

 
1.05

 
1.18

 
1.53

 
1.25

 
Adjusted return on average tangible assets1,3,4
1.67

 
1.59

 
1.50

 
1.49

 
1.22

 
1.59

 
1.29

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average shareholders' equity-GAAP basis3
10.73

 
10.23

 
10.47

 
7.65

 
8.89

 
10.48

 
9.65

 
Return on average tangible common equity-GAAP basis3,4
14.73

 
14.30

 
14.86

 
10.94

 
12.04

 
14.63

 
13.14

 
Adjusted return on average tangible common equity1,3,4
15.30

 
15.17

 
15.11

 
15.44

 
12.43

 
15.20

 
13.54

 
Efficiency ratio5
48.62

 
53.48

 
56.55

 
65.76

 
57.04

 
52.85

 
57.75

 
Adjusted efficiency ratio1
48.96

 
51.44

 
55.81

 
54.19

 
56.29

 
52.05

 
56.88

 
Noninterest income to total revenue (excluding securities losses)
19.53

 
18.93

 
17.45

 
17.97

 
19.31

 
18.64

 
19.84

 
Tangible common equity to tangible assets4
11.05

 
10.65

 
10.18

 
9.72

 
9.85

 
11.05

 
9.85

 
Average loan-to-deposit ratio
88.35

 
87.27

 
90.55

 
89.14

 
86.25

 
88.70

 
84.62

 
End of period loan-to-deposit ratio
88.36

 
88.53

 
86.38

 
93.43

 
87.77

 
88.36

 
87.77

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Per Share Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income diluted-GAAP basis
$
0.49

 
$
0.45

 
$
0.44

 
$
0.31

 
$
0.34

 
$
1.38

 
$
1.07

 
Net income basic-GAAP basis
0.50

 
0.45

 
0.44

 
0.32

 
0.35

 
1.39

 
1.09

 
Adjusted earnings1
0.53

 
0.50

 
0.47

 
0.47

 
0.37

 
1.50

 
1.15

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Book value per share common
18.70

 
18.08

 
17.44

 
16.83

 
15.50

 
18.70

 
15.50

 
Tangible book value per share
14.30

 
13.65

 
12.98

 
12.33

 
12.01

 
14.30

 
12.01

 
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
 
Nine Months Ended
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Amounts in thousands, except per share data)
3Q'19
 
2Q'19
 
1Q'19
 
4Q'18
 
3Q'18
 
3Q'19
 
3Q'18
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest on securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
$
8,802

 
$
8,933

 
$
9,119

 
$
9,528

 
$
9,582

 
$
26,854

 
$
28,332

 
Nontaxable
131

 
143

 
151

 
200

 
225

 
425

 
684

 
Interest and fees on loans
63,092

 
62,288

 
62,287

 
59,495

 
48,713

 
187,667

 
140,489

 
Interest on federal funds sold and other investments
800

 
873

 
918

 
835

 
634

 
2,591

 
1,835

 
Total Interest Income
72,825

 
72,237

 
72,475

 
70,058

 
59,154

 
217,537

 
171,340

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest on deposits
4,334

 
4,825

 
3,873

 
3,140

 
2,097

 
13,032

 
5,623

 
Interest on time certificates
6,009

 
5,724

 
4,959

 
3,901

 
2,975

 
16,692

 
7,783

 
Interest on borrowed money
1,534

 
1,552

 
2,869

 
3,033

 
2,520

 
5,955

 
6,403

 
Total Interest Expense
11,877

 
12,101

 
11,701

 
10,074

 
7,592

 
35,679

 
19,809

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Interest Income
60,948

 
60,136

 
60,774

 
59,984

 
51,562

 
181,858

 
151,531

 
Provision for loan losses
2,251

 
2,551

 
1,397

 
2,342

 
5,774

 
6,199

 
9,388

 
Net Interest Income After Provision for Loan Losses
58,697

 
57,585

 
59,377

 
57,642

 
45,788

 
175,659

 
142,143

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service charges on deposit accounts
2,978

 
2,894

 
2,697

 
3,019

 
2,833

 
8,569

 
8,179

 
Trust fees
1,183

 
1,147

 
1,017

 
1,040

 
1,083

 
3,347

 
3,143

 
Mortgage banking fees
2,127

 
1,734

 
1,115

 
809

 
1,135

 
4,976

 
3,873

 
Brokerage commissions and fees
449

 
541

 
436

 
468

 
444

 
1,426

 
1,264

 
Marine finance fees
152

 
201

 
362

 
185

 
194

 
715

 
1,213

 
Interchange income
3,206

 
3,405

 
3,401

 
3,198

 
3,119

 
10,012

 
9,137

 
BOLI income
928

 
927

 
915

 
1,091

 
1,078

 
2,770

 
3,200

 
SBA gains
569

 
691

 
636

 
519

 
473

 
1,896

 
1,955

 
Other
3,198

 
2,503

 
2,266

 
2,810

 
1,980

 
7,967

 
5,542

 
 
14,790

 
14,043

 
12,845

 
13,139

 
12,339

 
41,678

 
37,506

 
Securities losses, net
(847
)
 
(466
)
 
(9
)
 
(425
)
 
(48
)
 
(1,322
)
 
(198
)
 
Total Noninterest Income
13,943

 
13,577

 
12,836

 
12,714

 
12,291

 
40,356

 
37,308

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and wages
18,640

 
19,420

 
18,506

 
22,172

 
17,129

 
56,566

 
48,939

 
Employee benefits
2,973

 
3,195

 
4,206

 
3,625

 
3,205

 
10,374

 
9,320

 
Outsourced data processing costs
3,711

 
3,876

 
3,845

 
5,809

 
3,493

 
11,432

 
10,565

 
Telephone / data lines
603

 
893

 
811

 
602

 
624

 
2,307

 
1,879

 
Occupancy
3,368

 
3,741

 
3,807

 
3,747

 
3,214

 
10,916

 
9,647

 
Furniture and equipment
1,528

 
1,544

 
1,757

 
2,452

 
1,367

 
4,829

 
4,292

 
Marketing
933

 
1,211

 
1,132

 
1,350

 
1,139

 
3,276

 
3,735

 
Legal and professional fees
1,648

 
2,033

 
2,847

 
3,668

 
2,019

 
6,528

 
6,293

 
FDIC assessments
56

 
337

 
488

 
571

 
431

 
881

 
1,624

 
Amortization of intangibles
1,456

 
1,456

 
1,458

 
1,303

 
1,004

 
4,370

 
2,997

 
Foreclosed property expense and net (gain)/loss on sale
262

 
(174
)
 
(40
)
 

 
(136
)
 
48

 
461

 
Other
3,405

 
3,468

 
4,282

 
4,165

 
3,910

 
11,155

 
13,057

 
Total Noninterest Expense
38,583

 
41,000

 
43,099

 
49,464

 
37,399

 
122,682

 
112,809

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Before Income Taxes
34,057

 
30,162

 
29,114

 
20,892

 
20,680

 
93,333

 
66,642

 
Income taxes
8,452

 
6,909

 
6,409

 
4,930

 
4,358

 
21,770

 
15,329

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income
$
25,605

 
$
23,253

 
$
22,705

 
$
15,962

 
$
16,322

 
$
71,563

 
$
51,313

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Per share of common stock:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income diluted
$
0.49

 
$
0.45

 
$
0.44

 
$
0.31

 
$
0.34

 
$
1.38

 
$
1.07

 
Net income basic
0.50

 
0.45

 
0.44

 
0.32

 
0.35

 
1.39

 
1.09

 
Cash dividends declared

 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average diluted shares outstanding
51,935

 
51,952

 
52,039

 
51,237

 
48,029

 
51,996

 
47,903

 
Average basic shares outstanding
51,473

 
51,446

 
51,359

 
50,523

 
47,205

 
51,426

 
47,108

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





CONDENSED CONSOLIDATED BALANCE SHEETS
 
(Unaudited)
 
 
 
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
 
 
 
 
 
 
 
 
 
 
 
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
(Amounts in thousands)
 
2019
 
2019
 
2019
 
2018
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
106,349

 
$
97,792

 
$
98,270

 
$
92,242

 
$
101,920

 
Interest bearing deposits with other banks
 
25,911

 
61,987

 
105,741

 
23,709

 
3,174

 
Total Cash and Cash Equivalents
 
132,260

 
159,779

 
204,011

 
115,951

 
105,094

 
 
 
 
 
 
 
 
 
 
 
 
 
Time deposits with other banks
 
4,579

 
4,980

 
8,174

 
8,243

 
9,813

 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Securities:
 
 
 
 
 
 
 
 
 
 
 
Available for sale (at fair value)
 
920,811

 
914,615

 
877,549

 
865,831

 
923,206

 
Held to maturity (at amortized cost)
 
273,644

 
287,302

 
295,485

 
357,949

 
367,387

 
Total Debt Securities
 
1,194,455

 
1,201,917

 
1,173,034

 
1,223,780

 
1,290,593

 
 
 
 
 
 
 
 
 
 
 
 
 
Loans held for sale
 
26,768

 
17,513

 
13,900

 
11,873

 
16,172

 
 
 
 
 
 
 
 
 
 
 
 
 
Loans
 
4,986,289

 
4,888,139

 
4,828,441

 
4,825,214

 
4,059,323

 
Less: Allowance for loan losses
 
(33,605
)
 
(33,505
)
 
(32,822
)
 
(32,423
)
 
(33,865
)
 
Net Loans
 
4,952,684

 
4,854,634

 
4,795,619

 
4,792,791

 
4,025,458

 
 
 
 
 
 
 
 
 
 
 
 
 
Bank premises and equipment, net
 
67,873

 
68,738

 
70,412

 
71,024

 
63,531

 
Other real estate owned
 
13,593

 
11,043

 
11,921

 
12,802

 
4,715

 
Goodwill
 
205,286

 
205,260

 
205,260

 
204,753

 
148,555

 
Other intangible assets, net
 
21,318

 
22,672

 
23,959

 
25,977

 
16,508

 
Bank owned life insurance
 
125,277

 
125,233

 
124,306

 
123,394

 
122,561

 
Net deferred tax assets
 
17,168

 
19,353

 
24,647

 
28,954

 
25,822

 
Other assets
 
129,384

 
133,764

 
128,146

 
128,117

 
102,112

 
Total Assets
 
$
6,890,645

 
$
6,824,886

 
$
6,783,389

 
$
6,747,659

 
$
5,930,934

 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Deposits
 
 
 
 
 
 
 
 
 
 
 
Noninterest demand
 
$
1,652,927

 
$
1,669,804

 
$
1,676,009

 
$
1,569,602

 
$
1,488,689

 
Interest-bearing demand
 
1,115,455

 
1,124,519

 
1,100,477

 
1,014,032

 
912,891

 
Savings
 
528,214

 
519,732

 
508,320

 
493,807

 
451,958

 
Money market
 
1,158,862

 
1,172,971

 
1,192,070

 
1,173,950

 
1,036,940

 
Other time certificates
 
537,183

 
553,107

 
539,202

 
513,312

 
411,208

 
Brokered time certificates
 
458,418

 
268,998

 
367,841

 
220,594

 
192,182

 
Time certificates of more than $250,000
 
222,082

 
232,078

 
221,659

 
191,943

 
149,642

 
Total Deposits
 
5,673,141

 
5,541,209

 
5,605,578

 
5,177,240

 
4,643,510

 
 
 
 
 
 
 
 
 
 
 
 
 
Securities sold under agreements to repurchase
 
70,414

 
82,015

 
148,005

 
214,323

 
189,035

 
Federal Home Loan Bank borrowings
 
50,000

 
140,000

 
3,000

 
380,000

 
261,000

 
Subordinated debt
 
71,014

 
70,944

 
70,874

 
70,804

 
70,734

 
Other liabilities
 
63,398

 
60,479

 
59,508

 
41,025

 
33,824

 
Total Liabilities
 
5,927,967

 
5,894,647

 
5,886,965

 
5,883,392

 
5,198,103

 
 
 
 
 
 
 
 
 
 
 
 
 
Shareholders' Equity
 
 
 
 
 
 
 
 
 
 
 
Common stock
 
5,148

 
5,146

 
5,141

 
5,136

 
4,727

 
Additional paid in capital
 
784,661

 
782,928

 
780,680

 
778,501

 
668,711

 
Retained earnings
 
168,637

 
143,032

 
119,779

 
97,074

 
81,112

 
Treasury stock
 
(6,079
)
 
(6,137
)
 
(4,959
)
 
(3,384
)
 
(2,854
)
 
 
 
952,367

 
924,969

 
900,641

 
877,327

 
751,696

 
Accumulated other comprehensive income/(loss), net
 
10,311

 
5,270

 
(4,217
)
 
(13,060
)
 
(18,865
)
 
Total Shareholders' Equity
 
962,678

 
930,239

 
896,424

 
864,267

 
732,831

 
Total Liabilities & Shareholders' Equity
 
$
6,890,645

 
$
6,824,886

 
$
6,783,389

 
$
6,747,659

 
$
5,930,934

 
 
 
 
 
 
 
 
 
 
 
 
 
Common shares outstanding
 
51,482

 
51,461

 
51,414

 
51,361

 
47,270

 
 
 
 
 
 
 
 
 
 
 
 
 






CONSOLIDATED QUARTERLY FINANCIAL DATA
(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Amounts in thousands)
3Q'19
 
2Q'19
 
1Q'19
 
4Q'18
 
3Q'18
 
 
 
 
 
 
 
 
 
 
Credit Analysis
 
 
 
 
 
 
 
 
 
Net charge-offs (recoveries) - non-acquired loans
$
2,106

 
$
1,621

 
$
762

 
$
3,693

 
$
800

Net charge-offs (recoveries) - acquired loans
5

 
220

 
201

 
56

 
(3
)
Total Net Charge-offs (Recoveries)
2,111

 
1,841

 
963

 
3,749

 
797

 
 
 
 
 
 
 
 
 
 
TDR valuation adjustments
$
40

 
$
27

 
$
35

 
$
35

 
$
36

 
 
 
 
 
 
 
 
 
 
Net charge-offs (recoveries) to average loans - non-acquired loans
0.17
%
 
0.13
%
 
0.06
%
 
0.32
%
 
0.08
%
Net charge-offs (recoveries) to average loans - acquired loans

 
0.02

 
0.02

 

 

Total Net Charge-offs (Recoveries) to Average Loans
0.17

 
0.15

 
0.08

 
0.32

 
0.08

 
 
 
 
 
 
 
 
 
 
Provision for loan losses - non-acquired loans
$
2,241

 
$
2,326

 
$
1,709

 
$
2,343

 
$
5,640

Provision for (recapture of) loan losses - acquired loans
10

 
225

 
(312
)
 
(1
)
 
134

Total Provision for Loan Losses
$
2,251

 
$
2,551

 
$
1,397

 
$
2,342

 
$
5,774

 
 
 
 
 
 
 
 
 
 
Allowance for loan losses - non-acquired loans
$
33,488

 
$
33,393

 
$
32,715

 
$
31,803

 
$
33,188

Allowance for loan losses - acquired loans
117

 
112

 
107

 
620

 
677

Total Allowance for Loan Losses
$
33,605

 
$
33,505

 
$
32,822

 
$
32,423

 
$
33,865

 
 
 
 
 
 
 
 
 
 
Non-acquired loans at end of period
$
4,010,299

 
$
3,817,358

 
$
3,667,221

 
$
3,588,251

 
$
3,383,571

Purchased noncredit impaired loans at end of period
962,609

 
1,057,200

 
1,147,432

 
1,222,529