Attached files
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8-K - LIVE FILING - SEACOAST BANKING CORP OF FLORIDA | htm_37292.htm |
EX-99.1 - EX-99.1 - SEACOAST BANKING CORP OF FLORIDA | exhibit1.htm |
EX-99.2 - EX-99.2 - SEACOAST BANKING CORP OF FLORIDA | exhibit2.htm |
EXHIBIT 99.3
To Form 8-K dated April 21, 2010
Seacoast Banking Corporation of Florida
First Quarter 2010
Cautionary Notice Regarding Forward-Looking Statements
This information contains forward-looking statements within the meaning 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, ability to realized deferred tax assets, cost savings, enhanced revenues, economic and seasonal conditions in our markets, and improvements to reported earnings that may be realized from cost controls and for integration of banks that we have acquired, as well as statements with respect to Seacoasts objectives, expectations and intentions and other statements that are not historical facts. Actual results may differ from those set forth in the forward-looking statements.
Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance or achievements of Seacoast to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. You should not expect us to update any forward-looking statements.
You can identify these forward-looking statements through our use of words such as may, will, anticipate, assume, should, support, indicate, would, believe, contemplate, expect, estimate, continue, further, point to, project, could, intend or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the effects of future economic and market conditions, including seasonality; governmental monetary and fiscal policies, as well as legislative, tax and regulatory changes; changes in accounting policies, rules and practices; the risks of changes in interest rates on the level and composition of deposits, loan demand, liquidity and the values of loan collateral, securities, and interest sensitive assets and liabilities; interest rate risks, sensitivities and the shape of the yield curve; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market areas and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the Internet; and the failure of assumptions underlying the establishment of reserves for possible loan losses. The risks of mergers and acquisitions, include, without limitation: unexpected transaction costs, including the costs of integrating operations; the risks that the businesses will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; the potential failure to fully or timely realize expected revenues and revenue synergies, including as the result of revenues following the merger being lower than expected; the risk of deposit and customer attrition; any changes in deposit mix; unexpected operating and other costs, which may differ or change from expectations; the risks of customer and employee loss and business disruption, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures and solicitations of customers by competitors; as well as the difficulties and risks inherent with entering new markets.
All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2009 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 SECs Internet website at http://www.sec.gov.
Highlights
| In April we completed a private placement of securities totaling $50 million to further strengthen our capital structure |
| Solid capital position with estimated tangible common equity (TCE) of 6.9% including capital raised in April 2010 |
| Encouraging asset quality trends continue to improve with inflows to nonaccrual loans declining from $75 million in 3Q 2009 to $12 million this quarter |
| Nonperforming loans declined from $97.9 million at December 31, 2009 to $96.3 million during the quarter |
| Liquidity remains strong with low cost core funding from deposits and sweep repos |
| Cost of deposits declined 12 basis points to 1.03%; total interest bearing liabilities down 13 basis points to 1.25% |
| The impact of asset quality deterioration and weak demand on revenue was offset with better deposit mix and growth in low cost deposits |
| Focus remains on core deposit growth, risk mitigation and expense management |
| Expenses well managed; core operating expenses have declined year over year; however credit related expenses continue to impact results |
Capital Ratios
Continue to improve
1Q-2010 | 4Q-2009 | 3Q-2009 | 2Q-2009 | |||||||||||||
Estimate | Actual | Actual | Actual | |||||||||||||
Tier 1 Capital Ratio
|
13.83 | % | 13.75 | % | 14.94 | % | 11.83 | % | ||||||||
Total Risk Based Capital Ratio
|
15.29 | % | 15.17 | % | 16.22 | % | 13.41 | % | ||||||||
YTD Average Equity to YTD Average Assets |
7.13% |
8.92% |
9.18% |
9.40% |
||||||||||||
Tangible Equity to Tangible Assets
|
6.96 | % | 6.88 | % | 8.24 | % | 6.75 | % | ||||||||
Tangible Common Equity to Tangible Assets |
4.82%* |
4.79% |
6.14% |
4.66% |
||||||||||||
Tangible Common Equity to Risk Weighted Assets |
7.53% |
7.29% |
8.84% |
6.29% |
6.9% pro-forma with net proceeds of capital raise, assuming conversion to common stock
Funding & Liquidity
Stable Funding Profile and Very Strong Liquidity Position
Funding
| Deposits and sweep repo base -Customer deposits and sweep repos were $1.839 million at March 31, 2010 (1) -Customer deposits and sweep repos compose 94% of total funding (2) |
|
Liquidity | ||
| Daily overnight borrowing position maintained at zero since year-end 2008 |
| On balance sheet cash liquidity averaged approximately $190 million for the first quarter |
| Combined available contingent liquidity from the Federal Reserve, FHLB, and free securities approximately $556 million |
(1) | Excludes brokered deposits; but includes Certificate of Deposit Account Registry Service (CDARS) deposits |
(2) | Total funding includes customer deposits, broker deposits, sweep repos, borrowed funds and subordinated debt. |
Noninterest Expense
Controllable Expenses Well Managed
1Q 2010 vs 4Q | ||||||||||||||||||||
2009 | 1Q 2009 vs 1Q | |||||||||||||||||||
($in thousands) | (2) | 2009 | ||||||||||||||||||
1Q2010 | 4Q2009 | 1Q2009 | ||||||||||||||||||
Noninterest Expenses |
$ | 23,369 | $ | 20,868 | $ | 19,335 | 12.0 | % | 20.9 | % | ||||||||||
Nonrecurring: |
||||||||||||||||||||
Severance |
5 | 46 | 242 | |||||||||||||||||
Professional fees |
771 | 832 | | |||||||||||||||||
Legal settlement |
150 | | 39 | |||||||||||||||||
Branch closures |
150 | 905 | 107 | |||||||||||||||||
Other |
| | (224 | ) | ||||||||||||||||
Total nonrecurring expenses |
$ | 1,076 | $ | 1,783 | 164 | |||||||||||||||
Adjusted Noninterest Expense |
$ | 22,293 | $ | 19,085 | $ | 19,171 | 16.8 | % | 16.3 | % | ||||||||||
FDIC Expense |
1,006 | 1,042 | 877 | |||||||||||||||||
Net loss on OREO and other
asset dispositions |
4,073 | 1,415 | 502 | |||||||||||||||||
Credit Costs (1) |
494 | 818 | 691 | |||||||||||||||||
Controllable Expenses |
$ | 16,720 | $ | 15,810 | $ | 17,101 | 5.8 | % | -2.2 | % |
(1) Includes credit and collections
(2) | First quarter expense are normally higher as a result of payroll taxes, healthcare and unemployment insurance expense |
Core Deposit Growth
Emerging Strong Growth in Low Cost and No Cost Deposits
($ in thousands) | ||||||||||||
1Q2010 | 4Q2009 | 1Q2009 | ||||||||||
Demand deposits
(noninterest bearing) |
$ | 278,205 | $ | 268,789 | $ | 281,809 | ||||||
Savings deposits |
865,909 | 838,288 | 827,251 | |||||||||
Other time certificates |
304,807 | 326,070 | 335,251 | |||||||||
Core Deposits |
$ | 1,448,921 | $ | 1,433,147 | $ | 1,444,311 | ||||||
Brokered time certificates |
24,640 | 38,656 | 72,872 | |||||||||
Time certificates of
$100,000 or more |
285,872 | 307,631 | 297,125 | |||||||||
Total Deposits |
$ | 1,759,433 | $ | 1,779,434 | $ | 1,814,308 | ||||||
Excluding brokered time deposits |
$ | 1,734,793 | $ | 1,740,778 | $ | 1,741,436 | ||||||
Total Demand and Savings |
$ | 1,144,114 | $ | 1,107,077 | $ | 1,109,060 |
($ in thousands) | ||||||||||||
Year over Year | Growth for Quarter | Annualized | ||||||||||
Demand deposits
(noninterest bearing) |
-1.28 | % | 3.50 | % | 14.01 | % | ||||||
Savings deposits |
4.67 | % | 3.29 | % | 13.18 | % | ||||||
Other time certificates |
-9.08 | % | -6.52 | % | -26.08 | % | ||||||
Core Deposits |
0.32 | % | 1.10 | % | 4.40 | % | ||||||
Brokered time certificates |
-66.19 | % | -36.26 | % | -145.03 | % | ||||||
Time certificates of
$100,000 or more |
-3.79 | % | -7.07 | % | -28.29 | % | ||||||
Total Deposits |
-3.02 | % | -1.12 | % | -4.50 | % | ||||||
Excluding brokered time deposits |
-0.38 | % | -0.34 | % | -1.38 | % | ||||||
Total Demand and Savings |
3.16 | % | 3.35 | % | 13.38 | % |
Core Deposit Growth
Favorable Mix Shift
($ in thousands) | ||||||||
1Q2010 | Mix | |||||||
Demand deposits (noninterest
bearing) |
$ | 278,205 | 15.81 | % | ||||
Savings deposits |
865,909 | 49.22 | % | |||||
Total Demand and Savings |
$ | 1,144,114 | 65.03 | % | ||||
Other time certificates |
304,807 | 17.32 | % | |||||
Brokered time certificates |
24,640 | 1.40 | % | |||||
Time certificates of $100,000 or more |
285,872 | 16.25 | % | |||||
Total Time Deposits |
$ | 615,319 | 34.97 | % | ||||
Total Deposits |
$ | 1,759,433 |
($ in thousands) | ||||||||||||||||||||
4Q2009 | Mix | 1Q2009 | Mix | |||||||||||||||||
Demand deposits |
||||||||||||||||||||
(noninterest bearing) | $268,789 | 15.11 | % | $ | 281,809 | 15.53 | % | |||||||||||||
Savings deposits | 838,288 | 47.11 | % | 827,251 | 45.60 | % | ||||||||||||||
Core Demand and Savings | $1,107,077 | 62.22 | % | $ | 1,109,060 | 61.13 | % | |||||||||||||
Other time certificates | 326,070 | 18.32 | % | 335,251 | 18.48 | % | ||||||||||||||
Brokered time certificates |
38,656 | 2.17 | % | 72,872 | 4.02 | % | ||||||||||||||
Time certificates of |
||||||||||||||||||||
$100,000 or more | 307,631 | 17.29 | % | 297,125 | 16.38 | % | ||||||||||||||
Total Time Deposits | $672,357 | 37.78 | % | $ | 705,248 | 38.87 | % | |||||||||||||
Total Deposits | $1,779,434 | $ | 1,814,308 |
Net Interest Margin
(Dollars in thousands) | Q1-09 | Q2-09 | Q3-09 | Q4-09 | Q1-10 | |||||||||||||||
Net Interest Margin |
3.44 | % | 3.65 | % | 3.74 | % | 3.37 | % | 3.48 | % |
| Focus on deposit pricing and positive mix change benefited the margin in the first quarter |
| Based on current assumptions, margin expected to be relatively stable with some expansion possible |
Service Area
| Seminole County |
| Orange County |
| Brevard County |
| Indian River County |
| Okeechobee County |
| St. Lucie County |
| Martin County |
| Palm Beach County |
| Broward County |
| Hardee County |
| Highlands County |
| Desoto County |
| Glades County |
| Hendry County |