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8-K - CURRENT REPORT - SEACOAST BANKING CORP OF FLORIDAv333194_8k.htm
EX-99.2 - EXHIBIT 99.2 - SEACOAST BANKING CORP OF FLORIDAv333194_ex99-2.htm
EX-99.1 - EXHIBIT 99.1 - SEACOAST BANKING CORP OF FLORIDAv333194_ex99-1.htm

 

EXHIBIT 99.3

To Form 8-K dated January 24, 2013

 

Seacoast Banking Corporation of Florida

 

Fourth Quarter 2012

 

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.

 

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.

 

 
 

 

Highlights

 

4Q net interest margin increased 5 basis points to 3.22%

 

Residential mortgage production remained strong

 

Noninterest income* in the fourth quarter was up 14.9% compared to prior year

 

Core operating expenses well managed

 

Noninterest bearing demand deposit organic growth was $94.5 million or 28.8% year over year

 

Other real estate owned declined by 43% year over year

 

Solid capital position with estimated tangible common equity (TCE) ratio of 7.2% when DTA valuation allowance of $44.5 million is recaptured.

 

Distinctive value proposition has continued to grow the franchise and improve long term profitability and shareholder value

 

* Excluding securities gains and change in fair value of a commercial loan available for sale

 

 
 

 

Noninterest Income *


Growth in deposit accounts and mortgage banking leads to improved fee growth

 

(In thousands)

 

 

* Excluding securities gains and change in fair value of a commercial loan available for sale

 

 
 

 

Noninterest Expense


Core operating expense managed

 

 

 
 

 

Net Interest Margin

 

 

Opportunities:

 

Loan growth
Reduction of cost of deposits
Nonperforming asset resolution

 

Threats:

 

Market pressures

 

 
 

 

Mortgage Banking Gains

Our focus on building production capacity is paying off

 

Building Fee Based Revenues

 

 

 
 

 

Interchange Income


Our focus on building franchise households is paying off

 

Building Fee Based Revenues

 

 

 
 

 

Positive Household Growth

 

Aggregate Households

 

 

 
 

 

Demand Deposits – Personal

 

Building the Balance Sheet

 

 

 
 

 

Demand Deposits – Business

 

Building the Balance Sheet

 

 

 
 

 

Core Ending Deposit Growth

 

Favorable core growth rate

 

   (In millions)     
   4Q-2011   4Q-2012  

Year

Over Year

Increase

(Decrease)

 
             
Noninterest Bearing Deposits  $328   $423    28.8%
Savings Deposits   922    1,018    10.4%
                
Other Time Certificates   249    191    -23.3%
                
Time certificates of $100,000 or more   219    127    -41.8%
                
Total Deposits  $1,719   $1,759      

 

 
 

 

Core Ending Deposits


Favorable trend in lower cost deposits

 

 

 
 

 

Credit Analysis

 

   ($ in thousands) 
   4Q-2012   3Q-2012   2Q-2012   1Q-2012   4Q-2011 
                     
Net charge-offs  $2,151   $2,416   $6,275   $3,415   $3,268 
Net charge-offs to average loans   0.69%   0.79%   2.05%   1.13%   1.07%
                          
Loan loss provision  $1,136   $900   $6,455   $2,305   $432 
Allowance to loans at end of period   1.80%   1.92%   2.02%   2.01%   2.12%
Coverage ratio – NPLs   53.97%   52.01%   50.81%   58.62%   89.62%

 

 
 

 

Capital Ratios

 

   4Q-2012
Estimate
   3Q-2012
Actual
   2Q-2012
Actual
   1Q-2012
Actual
 
                 
Tier 1 Capital Ratio   17.08%   17.41%   17.17%   17.36%
Total Risk Based Capital Ratio   18.33%   18.67%   18.43%   18.62%
YTD Average Equity to YTD Average Assets   7.81%   7.84%   7.87%   7.85%
Tangible Equity to Tangible Assets   7.55%   7.96%   7.77%   7.79%
Tangible Common Equity to Tangible Assets   5.31%   5.63%   5.49%   5.58%
Tangible Common Equity to Risk Weighted Assets   9.29%   9.63%   9.52%   9.90%