EXHIBIT 99.1

To Form 8-K dated July 26, 2012

 

NEWS RELEASE

 

SEACOAST BANKING CORPORATION OF FLORIDA

 

Dennis S. Hudson, III

Chairman and Chief Executive Officer

Seacoast Banking Corporation of Florida

(772) 288-6085

 

William R. Hahl

Executive Vice President/

Chief Financial Officer

(772) 221-2825

 

SEACOAST REPORTS SECOND QUARTER RESULTS

 

Highlights compared to a year ago

 

·      Demand deposit balances increased 22.3% 

·      Noninterest income (excluding securities gains) grew 14.8% 

·     Other real estate owned declined by 72% 

·     Nonperforming assets decline to 2.64% of assets  

·     Risk-based capital ratio of 18.4%

 

STUART, FL., July 26, 2012 – Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCF) (the “Company”) today reported a net loss for the quarter ended June 30, 2012 of $2.335 million compared with net income of $1.113 million one year earlier. The net loss for the first six months of 2012 was $1.397 million compared with net income of $1.471 million in the first six months of 2011. Including preferred stock dividends and accretion of $937,000, the net loss applicable to common shareholders was $3.272 million or $0.03 per average common diluted share for the second quarter 2012, compared to net income of $176,000 or $0.00 per average common diluted share for the second quarter of 2011.

 

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New household acquisition was strong again during the second quarter 2012. New personal retail checking relationships opened during the quarter rose 23.7 percent compared to the same quarter in 2011.  Likewise, new commercial business checking deposit relationships opened increased by 65.5 percent compared with the same quarter one year ago.  Along with the new relationships, our programs have improved market share, increased average services per household and improved customer retention.

 

We were pleased to complete all of the previously announced sales related to a substantial portion of foreclosed properties during the quarter. In addition, market conditions permitted us to negotiate and close additional foreclosed property sales during the quarter. As a result, other real estate owned fell by 54% during the quarter and 72% compared with one year earlier to $7.2 million at June 30, 2012. This represents the lowest level of other real estate owned since 2008. Nonperforming assets (loans on nonaccrual and other real estate owned) to total assets fell to 2.64% compared with 3.46% one year earlier.

 

During the quarter we also continued to review our remaining problem loan assets and took substantial write downs and added additional specific reserves for certain loan assets which we determined late in the quarter could potentially be liquidated over the balance of this year. As a result, the provision for loan losses was $6,455,000 for the quarter compared with $902,000 one year earlier. Nonperforming loans in the second quarter totaled 3.97 percent of loans outstanding nearly unchanged from 3.88 percent at June 30, 2011.

 

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The decision to further accelerate our problem loan liquidation activities was part of a larger project initiated during the quarter to improve earnings in the near term. We are currently evaluating a combination of additional actions we intend to take, including office consolidations, revenue enhancements, acceleration of growth initiatives and a variety of cost-saving opportunities.

 

“Our growth initiatives have proven to be effective as demonstrated by strong performance during the quarter and over the last year in household build, core deposit growth and revenue improvements. We are pleased with the steady improvement in asset quality, and we intend to make further improvements at a faster pace which will also help us achieve expense savings. While we are pleased with having produced four consecutive quarters of profitability prior to this quarter, we are taking action to restore higher levels of profitability while also recognizing the need to continue to support our growth initiatives,” said Dennis S. Hudson, III, Chairman and Chief Executive Officer. In addition, our franchise picks up value as total customer funding (total deposits and repurchase agreements, excluding certificates of deposits) increases. Customer funding was up $200 million or 15.9 percent compared to June 30, 2011 and totaled $1.456 billion at June 30, 2012.”

 

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		2012				2011
(Dollars in thousands)		Second Quarter				Second Quarter				Change
Customer Relationship Funding (Period End)
Demand deposits (noninterest bearing)		$	393,681			$	321,876				22.3	%
NOW			420,449				385,640				9.0
Savings deposits			156,019				125,221				24.6
Money market accounts			346,191				320,510				8.0
Time certificates of deposit			373,244				528,214				(29.3	)
Total Deposits			1,689,584				1,681,461				0.5
Sweep repurchase agreements			139,489				102,827				35.7
Total core customer funding (1)			1,455,829				1,256,074				15.9

(1) Total deposits and sweep repurchase agreements, excluding certificates of deposits.

 

The Company’s retail and business core deposit focus has produced strong growth in valuable deposit customer relationships and has resulted in increased balances and improved deposit mix. Small business and commercial relationship growth initiatives are also starting to produce improved loan growth. The improved deposit mix and lower rates paid on interest bearing deposits during the second quarter reduced the overall cost of total deposits to 0.37 percent, 9 basis points lower than in the first quarter 2012 and 33 basis points lower than the second quarter 2011.

 

Additional highlights include:

 

·

Mortgage banking revenue in the second quarter 2012 was up $279,000 or 44.8 percent compared to first quarter 2012, and up $393,000 or 77.2 percent over the prior year due to higher volume and spreads;

 

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·

Interchange income totaled $1,154,000 for the quarter, an increase of $83,000 or 7.7 percent compared to first quarter 2012 and up $159,000 or 16.0 percent over the prior year;

·

Total noninterest bearing deposits at June 30, 2012 comprised 23.3 percent of total deposits, up from 19.1 percent a year ago;

·

Checking account household growth was 7.1 percent annualized for the first half of 2012 compared to 3.5 percent annualized for the same period in 2011;

·

Regulatory capital ratios remained strong with the total risk based capital ratio of 18.4 percent (estimated) at June 30, 2012, compared with 18.6 percent in the prior quarter; and

·

Wealth management fees were up $55,000 or 6.8 percent linked quarter.

 

Over the last two years, the Company has experienced strong growth in core deposit customer relationships since implementing its growth strategy. A total of 10,635 new households started banking with Seacoast over the past 12 months, up 19.7 percent over the same period one year earlier. These new households have opened 10,382 new checking accounts, an increase of 21.9 percent over the number of new accounts opened during the prior twelve months. These new relationships have also increased services and average balances per household.

 

These results reflect our relationship-based growth strategy which will continue to strengthen our valuable customer franchise in the state of Florida. This strategy will continue to serve us well in the current environment and was designed to position the franchise for added earnings growth in a more typical yield curve environment and as excess liquidity is deployed into higher rate earning assets.

 

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Average total deposits for the second quarter ended June 30, 2012 totaled $1.7 billion, up slightly compared to June 30, 2011 and first quarter 2012. Compared to the prior year, the mix of deposits continued to improve with run-off of customers with single-service certificates of deposits offset by increases in lower cost and no cost deposits. The mix of deposits improved with low cost interest bearing NOW and savings deposits increasing $11.4 million or 5.1 percent annualized, and average demand deposits increasing $32.7 million or 37.0 percent annualized compared to the first quarter 2012. Average demand deposits increased $57.2 million or 17.3 percent compared with second quarter a year ago. The average cost of interest bearing core deposits (NOW, savings and MMDA) during the second quarter was 0.18 percent, down 13 basis points from the second quarter of 2011. Interest rates paid on certificate of deposit rates were also lower compared to the second quarter last year and totaled 1.12 percent during the second quarter 2012, a decline of 62 basis points. The average cost of total interest bearing liabilities was 0.59 percent, down 9 basis points compared to the first quarter 2012 and 36 basis points lower than the second quarter of 2011.

 

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Net interest income for the quarter totaled $16.0 million, down $534,000 compared to the prior year. The decline in net interest income this quarter was a result of lower yields due to Federal Reserve policy to lower interest rates, partially offset by lower deposit costs and lower rates paid on interest bearing liabilities. The net interest margin for the second quarter totaled 3.17 percent, down 16 basis points compared to the first quarter of 2012 and down 19 basis points compared to the second quarter 2011. In the first and second quarters of 2012, a portion of the investment portfolio was sold to manage interest rate risk and price risk. This also reduced net interest income compared to prior periods. Over the past 12 months, the net interest margin was aided by much lower nonperforming assets and lower costs for interest bearing liabilities, offset by lower asset yields caused by Federal Reserve actions to stimulate economic growth.  In addition the net interest margin continues to be negatively impacted by higher levels of overnight liquidity and short-term investments.  Interest bearing deposit costs decreased 11 basis points to 0.47 percent during the second quarter 2012, and the total cost of interest bearing liabilities decreased from 0.95 percent for the second quarter 2011 to 0.59 percent in the second quarter 2012.  The mix in deposits continues to improve, which strengthens the net interest margin, and is a result of our tactical activities designed to attract, onboard and retain new personal and business relationships.  Noninterest bearing demand deposits increased to 23.3 percent of total deposits from 19.1 percent a year ago, and total transaction accounts and customer sweep repurchase accounts now account for more than two-thirds of total customer relationship funding.

 

Loan growth has improved over the last twelve months with total loans outstanding increasing year-over-year by $32.4 million or 2.7 percent. Loan growth improved due to new loan production, excluding loans originated for sale, which totaled $243.5 million, which was offset by nonperforming loan resolutions and increased principal prepayments. Loan production over the last year has consisted primarily of commercial loans with average balances of approximately $350,600 comprised of owner occupied real estate loans amortizing adjustable rate prime residential loans with initial interest rates fixed for 3, 5 and 7-year terms, and consumer installment loans as follows:

 

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Residential loans		$	138,600,000
Commercial loans			68,000,000
Consumer loans			36,900,000
		$	243,500,000

 

The Company recorded a provision for loan losses in the second quarter 2012 of $6.5 million compared to $0.9 million for the second quarter of 2011. The allowance for loan losses as a percentage of loans was 2.02 percent at June 30, 2012, compared to 2.01 percent for the first quarter this year and 2.63 percent at June 30, 2011. The higher provision for loan losses resulted from our decision to accelerate plans to liquidate underperforming loans more quickly than originally planned. Current quarter net loan charge-offs totaled $6.3 million compared to $4.0 million for the second quarter 2011 and $3.4 million for the first quarter 2012.

 

Second quarter 2012 noninterest income, excluding securities gains, was up $282,000 or 5.7% compared to the first quarter and was up $672,000 or 14.8% compared to the second quarter of 2011. Mortgage banking fees increased by $279,000 compared to the first quarter of 2012 with revenues of $902,000, and were $393,000 higher than the second quarter 2011. Aggregate service charges on deposits and interchange income were up when compared to the first quarter 2012 and last year’s second quarter as a result of the increases in new business and retail households. Combined, these deposit account-related revenues totaled $2.6 million in the second quarter, up $100,000 or 3.9 percent compared with second quarter 2011.

 

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(Dollars in thousands)		Q-2  2012				Q-1 2012				Q-4 2011				Q-3 2011				Q-2  2011
Noninterest Income:
Service charges on deposit accounts		$	1,487			$	1,461			$	1,599			$	1,675			$	1,546
Trust income			564				573				530				541				517
Mortgage banking fees			902				623				680				556				509
Brokerage commissions and fees			298				234				258				321				223
Marine finance fees			244				330				333				229				349
Interchange income			1,154				1,071				953				969				995
Other deposit based EFT fees			84				99				78				71				79
Other			486				546				452				344				329
			5,219				4,937				4,883				4,706				4,547
Securities gains			3,615				3,374				1,083				137				0
Total		$	8,834			$	8,311			$	5,966			$	4,843			$	4,547

 

The Company’s residential lending group has produced solid, quality mortgage loan growth in 2012. A total of 409 applications were accepted in the second quarter 2012 for total loans of $95.2 million, and 784 applications were taken in the first six months for $186.1 million. A total of $26 million in residential mortgage loans were sold in the second quarter of 2012. Over the first six months of 2012, a total of $47 million in residential mortgage loans were sold, and $67 million were added to the portfolio.

 

Core operating expenses were nearly unchanged for the quarter, but were up by $2.1 million over the prior year, related mainly to the overall growth initiatives. 

 

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(Dollars in thousands)		Q-2 2012				Q-1 2012				Q-4 2011				Q-3 2011				Q-2 2011
Noninterest Expense:
Salaries and wages		$	7,435			$	7,055			$	7,301			$	6,902			$	6,534
Employee benefits			1,916				2,010				1,447				1,391				1,437
Outsourced data processing costs			1,834				1,721				1,677				1,685				1,699
Telephone / data lines			297				289				285				286				319
Occupancy expense			1,943				1,882				1,795				1,967				1,919
Furniture and equipment expense			607				495				525				555				618
Marketing expense			677				926				947				551				667
Legal and professional fees			1,637				1,776				1,299				1,496				1,585
FDIC assessments			707				706				679				687				688
Amortization of intangibles			196				201				212				211				212
Other			2,314				2,163				2,264				1,947				1,812
Total Core Operating Expense			19,563				19,224				18,431				17,678				17,490
Net loss on OREO			790				1,959				1,254				906				441
Asset dispositions expense			368				527				275				479				1,142
Total		$	20,721			$	21,710			$	19,960			$	19,063			$	19,073

 

Total noninterest expenses were up $1.6 million in the second quarter of 2012 compared to a year ago. Salaries wages and benefit expenses were higher by $1.4 million as a result of adding lending production personnel and increased incentive payments due to higher revenues generated from wealth management and residential lending production. Costs associated with outsourced data processing services were also higher as a result of the increased account levels associated with household growth. Total expenses remain elevated due to the continued costs associated with the management and disposal of nonperforming assets.

 

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The Company will host a conference call on Friday, July 27, 2012 at 9:00 a.m. (Eastern Time) to discuss its earnings results and business trends. Investors may call in (toll-free) by dialing (888) 517-2458 (access code: 7659998; leader: Dennis S. Hudson). Charts will be used during the conference call and may be accessed at the Company’s website at www.seacoastbanking.net by selecting Presentations under the heading Investor Services. A replay of the conference call will be available beginning the afternoon of July 27 by dialing (888) 843-7419 (domestic), using the passcode 7659998.

 

Alternatively, individuals may listen to the live webcast of the presentation by visiting the Company’s website at www.seacoastbanking.net. The link to the live audio webcast is located in the subsection Presentations under the heading Investor Relations. Beginning the afternoon of July 27, 2012, an archived version of the webcast can be accessed from this same subsection of the website. This webcast will be archived and available for one year.

 

Seacoast Banking Corporation of Florida has approximately $2.1 billion in assets. It is one of the largest independent commercial banking organizations in Florida, headquartered on Florida’s Treasure Coast, one of the wealthiest and fastest growing areas in the nation.

 

 

Cautionary Notice Regarding Forward-Looking Statements

 

This press release 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 Seacoast’s 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.

 

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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, 2011 under “Special Cautionary Notice Regarding Forward-Looking Statements” and “Risk Factors”, and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC’s Internet website at http://www.sec.gov.

 

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FINANCIAL HIGHLIGHTS                                       (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

 

		Three Months Ended								Six Months Ended
(Dollars in thousands,		June 30,								June 30,
except share data)		2012				2011				2012				2011
Summary of Earnings
Net income (loss)		$	(2,335	)		$	1,113			$	(1,397	)		$	1,471
Net income (loss) available to common shareholders			(3,272	)			176				(3,271	)			(403	)
Net interest income  (1)			16,052				16,596				32,741				33,114
Performance Ratios
Return on average assets-GAAP basis (2), (3)			(0.44	)%			0.21	%			(0.13	)%			0.14	%
Return on average tangible assets (2), (3), (4)			(0.42	)			0.24				(0.11	)			0.17
Return on average shareholders' equity-GAAP basis (2), (3)			(5.56	)			2.68				(1.68	)			1.79
Net interest margin  (1), (2)			3.17				3.36				3.25				3.42
Per Share Data
Net income (loss) diluted-GAAP basis		$	(0.03	)		$	0.00			$	(0.03	)		$	0.00
Net income (loss) basic-GAAP basis			(0.03	)			0.00				(0.03	)			0.00
Cash dividends declared			0.00				0.00				0.00				0.00

 

		June 30,								Increase/
		2012				2011				(Decrease)
Credit Analysis
Net charge-offs year-to-date		$	9,690			$	8,055				20.3	%
Net charge-offs to average loans			1.59	%			1.32	%			20.5
Loan loss provision year-to-date		$	8,760			$	1,542				468.1
Allowance to loans at end of period			2.02	%			2.63	%			(23.2	)
Nonperforming loans		$	48,482			$	46,165				5.0
Other real estate owned			7,219				25,877				(72.1	)
Total non-performing assets		$	55,701			$	72,042				(22.7	)
Restructured loans (accruing)		$	54,842			$	60,238				(9.0	)
Nonperforming assets to loans and other real estate owned at end of period			4.53	%			5.93	%			(23.6	)
Nonperforming assets to total assets			2.64	%			3.46	%			(23.7	)
Selected Financial Data
Total assets		$	2,106,514			$	2,082,863				1.1
Securities available for sale (at fair value)			562,691				611,231				(7.9	)
Securities held for investment (at amortized cost)			17,122				25,159				(31.9	)
Net loans			1,196,719				1,157,714				3.4
Deposits			1,689,584				1,681,461				0.5
Total shareholders' equity			165,453				171,148				(3.3	)
Common shareholders' equity			117,332				124,276				(5.6	)
Book value per share common			1.24				1.33				(6.8	)
Tangible book value per share			1.73				1.80				(3.9	)
Tangible common book value per share (5)			1.22				1.30				(6.2	)
Average shareholders' equity to average assets			7.87	%			8.06	%			(2.4	)
Tangible common equity to tangible assets (5), (6)			5.49				5.84				(6.0	)
Average Balances (Year-to-Date)
Total assets		$	2,129,949			$	2,057,099				3.5
Less: intangible assets			2,086				2,921				(28.6	)
Total average tangible assets		$	2,127,863			$	2,054,178				3.6
Total equity		$	167,665			$	165,748				1.2
Less: intangible assets			2,086				2,921				(28.6	)
Total average tangible equity		$	165,579			$	162,827				1.7

 

(1)

Calculated on a fully taxable equivalent basis using amortized cost.

(2)

These ratios are stated on an annualized basis and are not necessarily indicative of future periods.

(3)

The calculation of ROA and ROE do not include the mark-to-market unrealized gains (losses) because the unrealized gains (losses) are not included in net income (loss).

(4)

The Company believes that return on average assets and equity excluding the impacts of noncash amortization expense on intangible assets is a better measurement of the Company's trend in earnings growth.

(5)

The Company defines tangible common equity as total shareholders equity less preferred stock and intangible assets.

(6)

The ratio of tangible common equity to tangible assets is a non-GAAP ratio used by the investment community to measure capital adequacy.

 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME                     (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

 

		Three Months Ended								Six Months Ended
		June 30,								June 30,
(Dollars in thousands, except per share data)		2012				2011				2012				2011
Interest on securities:
Taxable		$	3,309			$	4,575			$	7,644			$	8,251
Nontaxable			23				38				47				85
Interest and fees on loans			14,707				15,476				29,481				31,689
Interest on federal funds sold and other investments			267				198				484				431
Total Interest Income			18,306				20,287				37,656				40,456
Interest on deposits			418				643				867				1,235
Interest on time certificates			1,133				2,307				2,633				4,655
Interest on borrowed money			748				796				1,507				1,569
Total Interest Expense			2,299				3,746				5,007				7,459
Net Interest Income			16,007				16,541				32,649				32,997
Provision for loan losses			6,455				902				8,760				1,542
Net Interest Income After Provision for Loan Losses			9,552				15,639				23,889				31,455
Noninterest income:
Service charges on deposit accounts			1,487				1,546				2,948				2,988
Trust income			564				517				1,137				1,040
Mortgage banking fees			902				509				1,525				904
Brokerage commissions and fees			298				223				532				543
Marine finance fees			244				349				574				647
Interchange income			1,154				995				2,225				1,886
Other deposit based EFT fees			84				79				183				169
Other			486				329				1,032				579
			5,219				4,547				10,156				8,756
Securities gains, net			3,615				0				6,989				0
Total Noninterest Income			8,834				4,547				17,145				8,756
Noninterest expenses:
Salaries and wages			7,435				6,534				14,490				13,085
Employee benefits			1,916				1,437				3,926				3,037
Outsourced data processing costs			1,834				1,699				3,555				3,221
Telephone / data lines			297				319				586				608
Occupancy			1,943				1,919				3,825				3,865
Furniture and equipment			607				618				1,102				1,211
Marketing			677				667				1,603				1,419
Legal and professional fees			1,637				1,585				3,413				3,342
FDIC assessments			707				688				1,413				1,647
Amortization of intangibles			196				212				397				424
Asset dispositions expense			368				441				895				1,527
Net loss on other real estate owned and repossessed assets			790				1,142				2,749				1,591
Other			2,314				1,812				4,477				3,763
Total Noninterest Expenses			20,721				19,073				42,431				38,740
Income (Loss) Before Income Taxes			(2,335	)			1,113				(1,397	)			1,471
Provision for income taxes			0				0				0				0
Net Income (Loss)			(2,335	)			1,113				(1,397	)			1,471
Preferred stock dividends and accretion on preferred stock discount			937				937				1,874				1,874
Net Income (Loss) Available to Common Shareholders		$	(3,272	)		$	176			$	(3,271	)		$	(403	)
Per share of common stock:
Net income (loss) diluted		$	(0.03	)		$	0.00			$	(0.03	)		$	0.00
Net income (loss) basic			(0.03	)			0.00				(0.03	)			0.00
Cash dividends declared			0.00				0.00				0.00				0.00
Average diluted shares outstanding			94,452,317				93,492,169				94,423,611				93,475,523
Average basic shares outstanding			93,667,231				93,492,169				93,642,680				93,475,523

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS                    (Unaudited)

SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES

 

		June 30,				December 31,				June 30,
(Dollars in thousands, except share data)		2012				2011				2011
Assets
Cash and due from banks		$	29,333			$	41,136			$	28,782
Interest bearing deposits with other banks			190,302				125,945				138,109
Total  Cash and Cash Equivalents			219,635				167,081				166,891
Securities:
Available for sale (at fair value)			562,691				648,362				611,231
Held for investment (at amortized cost)			17,122				19,977				25,159
Total Securities			579,813				668,339				636,390
Loans available for sale			11,186				6,795				4,758
Loans, net of deferred costs			1,221,354				1,208,074				1,188,945
Less: Allowance for loan losses			(24,635	)			(25,565	)			(31,231	)
Net Loans			1,196,719				1,182,509				1,157,714
Bank premises and equipment, net			35,044				34,227				34,892
Other real estate owned			7,219				20,946				25,877
Other intangible assets			1,892				2,289				2,713
Other assets			55,006				55,189				53,628
		$	2,106,514			$	2,137,375			$	2,082,863
Liabilities and Shareholders' Equity
Liabilities
Deposits
Demand deposits (noninterest bearing)		$	393,681			$	328,356			$	321,876
NOW			420,449				469,631				385,640
Savings deposits			156,019				133,578				125,221
Money market accounts			346,191				319,152				320,510
Other time certificates			207,062				244,886				274,565
Brokered time certificates			7,130				4,558				7,532
Time certificates of $100,000 or more			159,052				218,580				246,117
Total Deposits			1,689,584				1,718,741				1,681,461
Federal funds purchased and securities sold under agreements to repurchase, maturing within 30 days			139,489				136,252				102,827
Borrowed funds			50,000				50,000				50,000
Subordinated debt			53,610				53,610				53,610
Other liabilities			8,378				8,695				23,817
			1,941,061				1,967,298				1,911,715
Shareholders' Equity
Preferred stock - Series A			48,121				47,497				46,872
Common stock			9,477				9,469				9,354
Additional paid in capital			222,391				222,048				221,760
Accumulated deficit			(117,423	)			(114,152	)			(111,849	)
Treasury stock			(32	)			(13	)			(4	)
			162,534				164,849				166,133
Accumulated other comprehensive gain, net			2,919				5,228				5,015
Total Shareholders' Equity			165,453				170,077				171,148
		$	2,106,514			$	2,137,375			$	2,082,863
Common Shares Outstanding			94,779,981				94,686,801				93,541,902

 

Note: The balance sheet at December 31, 2011 has been derived from the audited financial statements at that date.

 

 

CONSOLIDATED QUARTERLY FINANCIAL DATA                       (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

 

		QUARTERS
		2012								2011								Last 12
(Dollars in thousands, except per share data)		Second				First				Fourth				Third				Months
Net income		$	(2,335	)		$	938			$	2,548			$	2,648			$	3,799
Operating Ratios
Return on average assets-GAAP basis (2),(3)			(0.44	)%			0.18	%			0.48	%			0.51	%			0.18	%
Return on average tangible assets (2),(3),(4)			(0.42	)			0.20				0.51				0.54				0.21
Return on average shareholders' equity-GAAP basis (2),(3)			(5.56	)			2.26				6.17				6.33				2.29
Net interest margin (1),(2)			3.17				3.33				3.42				3.44				3.34
Average equity to average assets			7.90				7.85				7.86				8.07				7.92
Credit Analysis
Net charge-offs		$	6,275			$	3,415			$	3,268			$	2,830			$	15,788
Net charge-offs to average loans			2.05	%			1.13	%			1.07	%			0.94	%			1.30	%
Loan loss provision		$	6,455			$	2,305			$	432			$	0			$	9,192
Allowance to loans at end of period			2.02	%			2.01	%			2.12	%			2.35	%
Restructured loans (accruing)		$	54,842				57,665				71,611				72,751
Nonperforming loans		$	48,482				41,716				28,526				32,627
Other real estate owned			7,219				15,530				20,946				23,702
Nonperforming assets		$	55,701			$	57,246			$	49,472			$	56,329
Nonperforming assets to loans and other real estate owned at end of period			4.53	%			4.65	%			4.03	%			4.57	%
Nonperforming assets to total assets			2.64				2.64				2.31				2.75
Nonaccrual loans and accruing loans 90 days or more past due to loans outstanding at end of period			3.97				3.43				2.36				2.70
Per Share Common Stock
Net income (loss) diluted-GAAP basis		$	(0.03	)		$	0.00			$	0.02			$	0.02			$	0.00
Net income (loss) basic-GAAP basis			(0.03	)			0.00				0.02				0.02			$	0.00
Cash dividends declared			-				-				-				-			$	-
Book value per share common			1.24				1.30				1.29				1.31
Average Balances
Total assets		$	2,133,713			$	2,126,186			$	2,085,466			$	2,054,856
Less: Intangible assets			1,988				2,184				2,392				2,605
Total average tangible assets		$	2,131,725			$	2,124,002			$	2,083,074			$	2,052,251
Total equity		$	168,457			$	166,874			$	163,857			$	165,845
Less: Intangible assets			1,988				2,184				2,392				2,605
Total average tangible equity		$	166,469			$	164,690			$	161,465			$	163,240

 

(1)

Calculated on a fully taxable equivalent basis using amortized cost.

(2)

These ratios are stated on an annualized basis and are not necessarily indicative of future periods.

(3)

The calculation of ROA and ROE do not include the mark-to-market unrealized gains (losses), because the unrealized gains (losses) are not included in net income (loss).

(4)

The Company believes that return on average assets and equity excluding the impacts of noncash amortization expense on intangible assets is a better measurement of the Company's trend in earnings growth.

 

		June 30,				December 31,				June 30,
SECURITIES		2012				2011				2011
U.S. Treasury and U.S. Government Agencies		$	1,714			$	1,724			$	4,224
Mortgage-backed			560,070				645,471				602,882
Obligations of states and political subdivisions			907				1,167				1,400
Other securities			0				0				2,725
Securities Available for Sale			562,691				648,362				611,231
Mortgage-backed			8,962				12,315				16,448
Obligations of states and political subdivisions			6,660				6,662				7,711
Other securities			1,500				1,000				1,000
Securities Held for Investment			17,122				19,977				25,159
Total Securities		$	579,813			$	668,339			$	636,390

 

		June 30,				December 31,				June 30,
LOANS		2012				2011				2011
Construction and land development		$	57,228			$	49,184			$	49,193
Real estate mortgage			1,057,551				1,054,599				1,039,997
Installment loans to individuals			50,133				50,611				51,351
Commercial and financial			56,220				53,105				48,012
Other loans			222				575				392
Total Loans		$	1,221,354			$	1,208,074			$	1,188,945

 

 

AVERAGE BALANCES, YIELDS AND RATES (1)                             (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

 

		2012																2011
		Second Quarter								First Quarter								Second Quarter
		Average				Yield/				Average				Yield/				Average				Yield/
(Dollars in thousands)		Balance				Rate				Balance				Rate				Balance				Rate
Assets
Earning assets:
Securities:
Taxable		$	552,501				2.40	%		$	620,666				2.79	%		$	591,265				3.10	%
Nontaxable			2,055				6.81				2,223				6.48				3,518				6.48
Total Securities			554,556				2.41				622,889				2.81				594,783				3.11
Federal funds sold and other investments			248,944				0.43				179,337				0.49				163,847				0.48
Loans,  net			1,231,239				4.81				1,213,796				4.91				1,221,388				5.09
Total Earning Assets			2,034,739				3.63				2,016,022				3.87				1,980,018				4.12
Allowance for loan losses			(23,677	)							(25,104	)							(33,425	)
Cash and due from banks			31,795								36,513								29,513
Premises and equipment			34,197								34,237								35,368
Other assets			56,659								64,518								72,384
		$	2,133,713							$	2,126,186							$	2,083,858
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
NOW (2)		$	423,240				0.16	%		$	432,515				0.17	%		$	392,514				0.26	%
Savings deposits			152,333				0.10				140,941				0.11				123,759				0.11
Money market accounts (2)			336,392				0.26				327,071				0.28				319,098				0.45
Time deposits			406,292				1.12				443,538				1.36				530,906				1.74
Federal funds purchased and other short term borrowings			146,510				0.25				147,413				0.23				105,134				0.27
Other borrowings			103,610				2.55				103,610				2.61				103,610				2.81
Total Interest-Bearing Liabilities			1,568,377				0.59				1,595,088				0.68				1,575,021				0.95
Demand deposits (noninterest-bearing)			388,060								355,362								330,858
Other liabilities			8,819								8,862								11,637
Total Liabilities			1,965,256								1,959,312								1,917,516
Shareholders' equity			168,457								166,874								166,342
		$	2,133,713							$	2,126,186							$	2,083,858
Interest expense as a % of earning assets							0.45	%							0.54	%							0.76	%
Net interest income as a % of earning assets							3.17								3.33								3.36

 

(1)

On a fully taxable equivalent basis. All yields and rates have been computed on an annualized basis using amortized cost. Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.

(2)

Certain reclassifications have been made to prior years' presentations to conform to the current year presentation.

 

 

CONSOLIDATED QUARTERLY FINANCIAL  DATA                           (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

 

		2012								2011
(Dollars in thousands)		Second Quarter				First Quarter				Fourth Quarter				Third Quarter				Second Quarter
Customer Relationship Funding (Period End)
Demand deposits (noninterest bearing)		$	393,681			$	394,532			$	328,356			$	324,256			$	321,876
NOW accounts			420,449				436,712				469,631				391,318				385,640
Money market accounts			346,191				330,409				319,152				327,654				320,510
Savings savings accounts			156,019				148,068				133,578				128,543				125,221
Time certificates of deposit			373,244				427,738				468,024				489,503				528,214
Total Deposits			1,689,584				1,737,459				1,718,741				1,661,274				1,681,461
Sweep repurchase agreements			139,489				149,316				136,252				106,562				102,827
Total core customer funding (1)			1,455,829				1,459,037				1,386,969				1,278,333				1,256,074

 

(1)

Total deposits and sweep repurchase agreements, excluding certificates of deposits.

 

 

QUARTERLY TRENDS - LOANS AT END OF PERIOD (Dollars in Millions)                 (Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

 

		2011																2012
		1st Qtr				2nd Qtr				3rd Qtr				4th Qtr				1st Qtr				2nd Qtr
Construction and land development
Residential
Condominiums		$	0.5			$	-			$	-			$	-			$	-			$	-
Townhomes			-				-				-				-				-				-
Single family residences			-				-				-				-				-				-
Single family land and lots			6.6				6.5				6.4				6.2				6.0				5.9
Multifamily			6.1				5.7				5.5				5.1				4.9				4.7
			13.2				12.2				11.9				11.3				10.9				10.6
Commercial
Office buildings			-				-				-				0.2				0.3				-
Retail trade			-				-				-				-				-				-
Land			33.9				10.3				10.2				9.3				9.2				10.7
Industrial			-				-				-				-				-				-
Healthcare			-				-				-				-				-				-
Churches and educational facilities			-				-				-				0.1				0.3				0.3
Lodging			-				-				-				-				-				-
Convenience stores			0.5				0.6				0.6				1.7				1.4				1.4
Marina			-				-				-				-				-				-
Other			-				-				-				-				-				-
			34.4				10.9				10.8				11.3				11.2				12.4
Individuals
Lot loans			20.8				19.4				18.6				17.9				18.4				17.6
Construction			7.3				6.7				6.4				8.7				13.5				16.6
			28.1				26.1				25.0				26.6				31.9				34.2
Total construction and land development			75.7				49.2				47.7				49.2				54.0				57.2
Real estate mortgages
Residential real estate
Adjustable			308.6				314.3				324.4				334.1				341.6				359.4
Fixed rate			86.6				88.8				92.8				97.0				96.2				95.4
Home equity mortgages			67.7				63.1				63.6				60.2				59.5				58.3
Home equity lines			57.4				56.9				55.1				54.9				53.0				50.8
			520.3				523.1				535.9				546.2				550.3				563.9
Commercial real estate
Office buildings			121.3				120.0				122.0				119.6				118.0				113.4
Retail trade			150.6				149.6				146.1				140.6				139.3				128.5
Industrial			76.3				68.5				72.5				70.7				70.0				72.0
Healthcare			26.6				26.3				29.6				38.8				40.2				42.0
Churches and educational facilities			28.6				28.2				27.8				27.4				27.0				26.7
Recreation			2.8				2.8				2.7				3.2				3.1				3.1
Multifamily			14.2				16.8				15.4				9.4				8.8				8.3
Mobile home parks			2.5				2.4				2.2				2.2				2.1				2.1
Lodging			21.7				20.0				19.8				19.6				19.4				19.3
Restaurant			4.2				4.3				4.3				4.7				4.6				4.7
Agricultural			9.2				9.2				8.9				8.8				7.6				7.4
Convenience stores			20.1				20.0				19.8				15.1				15.5				15.4
Marina			21.7				21.5				21.4				21.3				21.6				21.5
Other			27.4				27.3				26.9				27.0				29.3				29.3
			527.2				516.9				519.4				508.4				506.5				493.7
Total real estate mortgages			1,047.5				1,040.0				1,055.3				1,054.6				1,056.8				1,057.6
Commercial & financial			51.5				48.0				53.5				53.1				54.6				56.2
Installment loans to individuals
Automobile and trucks			10.1				9.5				9.2				8.7				8.2				8.1
Marine loans			19.4				20.2				21.6				19.9				21.1				20.8
Other			20.9				21.6				20.9				22.0				21.5				21.3
			50.4				51.3				51.7				50.6				50.8				50.2
Other			0.3				0.4				0.3				0.6				0.2				0.2
		$	1,225.4			$	1,188.9			$	1,208.5			$	1,208.1			$	1,216.4			$	1,221.4

 

 

QUARTERLY TRENDS - INCREASE (DECREASE) IN LOANS BY QUARTER (Dollars in Millions)       (Unauduited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

 

		2011																2012
		1st Qtr				2nd Qtr				3rd Qtr				4th Qtr				1st Qtr				2nd Qtr
Construction and land development
Residential
Condominiums		$	(0.4	)		$	(0.5	)		$	-			$	-			$	-			$	-
Townhomes			-				-				-				-				-				-
Single family residences			-				-				-				-				-				-
Single family land and lots			(0.4	)			(0.1	)			(0.1	)			(0.2	)			(0.2	)			(0.1	)
Multifamily			-				(0.4	)			(0.2	)			(0.4	)			(0.2	)			(0.2	)
			(0.8	)			(1.0	)			(0.3	)			(0.6	)			(0.4	)			(0.3	)
Commercial
Office buildings			-				-				-				0.2				0.1				(0.3	)
Retail trade			-				-				-				-				-				-
Land			0.3				(23.6	)			(0.1	)			(0.9	)			(0.1	)			1.5
Industrial			-				-				-				-				-				-
Healthcare			-				-				-				-				-				-
Churches and educational facilities			-				-				-				0.1				0.2				-
Lodging			-				-				-				-				-				-
Convenience stores			0.3				0.1				-				1.1				(0.3	)			-
Marina			-				-				-				-				-				-
Other			-				-				-				-				-				-
			0.6				(23.5	)			(0.1	)			0.5				(0.1	)			1.2
Individuals
Lot loans			(3.6	)			(1.4	)			(0.8	)			(0.7	)			0.5				(0.8	)
Construction			0.2				(0.6	)			(0.3	)			2.3				4.8				3.1
			(3.4	)			(2.0	)			(1.1	)			1.6				5.3				2.3
Total construction and land development			(3.6	)			(26.5	)			(1.5	)			1.5				4.8				3.2
Real estate mortgages
Residential real estate
Adjustable			5.3				5.7				10.1				9.7				7.5				17.8
Fixed rate			4.0				2.2				4.0				4.2				(0.8	)			(0.8	)
Home equity mortgages			(5.7	)			(4.6	)			0.5				(3.4	)			(0.7	)			(1.2	)
Home equity lines			(0.3	)			(0.5	)			(1.8	)			(0.2	)			(1.9	)			(2.2	)
			3.3				2.8				12.8				10.3				4.1				13.6
Commercial real estate
Office buildings			(0.7	)			(1.3	)			2.0				(2.4	)			(1.6	)			(4.6	)
Retail trade			(0.9	)			(1.0	)			(3.5	)			(5.5	)			(1.3	)			(10.8	)
Industrial			(1.7	)			(7.8	)			4.0				(1.8	)			(0.7	)			2.0
Healthcare			(3.4	)			(0.3	)			3.3				9.2				1.4				1.8
Churches and educational facilities			(0.2	)			(0.4	)			(0.4	)			(0.4	)			(0.4	)			(0.3	)
Recreation			(0.1	)			-				(0.1	)			0.5				(0.1	)			-
Multifamily			(8.2	)			2.6				(1.4	)			(6.0	)			(0.6	)			(0.5	)
Mobile home parks			-				(0.1	)			(0.2	)			-				(0.1	)			-
Lodging			(0.2	)			(1.7	)			(0.2	)			(0.2	)			(0.2	)			(0.1	)
Restaurant			(0.3	)			0.1				-				0.4				(0.1	)			0.1
Agricultural			(1.4	)			-				(0.3	)			(0.1	)			(1.2	)			(0.2	)
Convenience stores			1.5				(0.1	)			(0.2	)			(4.7	)			0.4				(0.1	)
Marina			(0.2	)			(0.2	)			(0.1	)			(0.1	)			0.3				(0.1	)
Other			(0.6	)			(0.1	)			(0.4	)			0.1				2.3				-
			(16.4	)			(10.3	)			2.5				(11.0	)			(1.9	)			(12.8	)
Total real estate mortgages			(13.1	)			(7.5	)			15.3				(0.7	)			2.2				0.8
Commercial & financial			2.7				(3.5	)			5.5				(0.4	)			1.5				1.6
Installment loans to individuals
Automobile and trucks			(0.8	)			(0.6	)			(0.3	)			(0.5	)			(0.5	)			(0.1	)
Marine loans			(0.4	)			0.8				1.4				(1.7	)			1.2				(0.3	)
Other			-				0.7				(0.7	)			1.1				(0.5	)			(0.2	)
			(1.2	)			0.9				0.4				(1.1	)			0.2				(0.6	)
Other			-				0.1				(0.1	)			0.3				(0.4	)			-
		$	(15.2	)		$	(36.5	)		$	19.6			$	(0.4	)		$	8.3			$	5.0