Full-Year 2017 Net Income Increased 47% to $42.9 Million
Achieved 19% Growth in Year-Over-Year Tangible Book Value per Share
Fourth Quarter Net Income Increased 21% Over the Prior Year Quarter to $13.0 Million
STUART, Fla., Jan. 25, 2018 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida (“Seacoast” or “the Company”) (NASDAQ:SBCF) today reported net income of $13.0 million, or $0.28 per share for the fourth quarter of 2017, a 21% or $2.3 million increase from the fourth quarter of 2016. The Company reported fourth quarter adjusted net income1 of $17.3 million, or $0.37 per share, representing a 46% or $5.5 million increase from the fourth quarter of 2016. Full-year 2017 net income was $42.9 million, or $0.99 per share, a 47% or $13.7 million increase compared to prior year results. Full-year 2017 adjusted net income1 was $55.3 million, or $1.28 per share, a 42% or $16.3 million increase compared to prior year results.
For the fourth quarter 2017, return on average tangible assets was 0.97%, return on average tangible shareholders’ equity was 10.7%, and the efficiency ratio was 64.0%, compared to 1.12%, 12.5% and 58.9%, respectively, in the prior quarter and 1.00%, 12.5%, and 62.4%, respectively, in the fourth quarter of 2016. Adjusted return on average tangible assets1 was 1.23%, adjusted return on average tangible shareholders’ equity1 was 13.5%, and the adjusted efficiency ratio1 was 52.6%, compared to 1.16%, 12.8%, and 57.7%, respectively, in the prior quarter, and 1.05%, 13.1%, and 60.8%, respectively, in the fourth quarter of 2016.
Dennis S. Hudson, III, Seacoast’s Chairman and CEO, said, “Seacoast’s 2017 performance demonstrated our ability to consistently grow our banking franchise through both organic initiatives and prudent acquisitions, while simultaneously delivering record shareholder returns, highlighted by a 23% year-over-year increase in adjusted earnings per share. As we navigated the near-term impact of Hurricane Irma, we continued to drive earnings expansion while retaining the quality of our loan portfolio and investing to support our long-term growth objectives.”
Hudson added, “We expect that the recently passed Tax Cuts and Jobs Act of 2017 will further strengthen economic fundamentals across Florida. Our expansion into South Florida, Orlando and Tampa positions Seacoast to capture this expected economic growth in the coming year as we provide a compelling value proposition for consumers and business customers living and operating in these markets.”
Hudson concluded, “The continued execution of our balanced growth strategy, combined with the additional financial resources provided by the tax cut, will enable Seacoast to accelerate investments in our franchise, deliver incremental value for all stakeholders, and further advance our momentum toward our Vision 2020 objectives, which we introduced at our investor day last year.”
Charles M. Shaffer, Seacoast’s Chief Financial Officer, said, “We have been successful in allocating capital throughout the year into accretive opportunities, offsetting the initial dilution from our share issuance in February 2017. We have increased our tangible book value per share from $9.37 per share at the start of the year to $11.15 at year end, representing 19% growth in tangible capital per share. We are exiting the year with a ratio of tangible common equity to tangible assets of 9.4% and a loan to deposit ratio of 83%, providing both capital and low-cost funding for accretive growth in 2018. Our low cost of funding and asset sensitive balance sheet position us well for continued earnings growth in 2018.”
Update on Vision 2020 and the Tax Cuts and Jobs Act of 2017
We are confident in our ability to achieve our Vision 2020 targets announced at investor day in February of 2017. The enactment of the Tax Cuts and Jobs Act of 2017 on December 22, 2017 should have a significant positive impact on the United States economy and growth in our Florida markets. This clearly creates an opportunity for us to accelerate the achievement of our Vision 2020 objectives, through increased growth and appropriate investments. As the impact of this new legislation on our operating markets materializes, we will provide further updates on our progress and updated objectives.
| Vision 2020 Targets | |
| Return on Tangible Assets | 1.30%+ |
| Return on Tangible Common Equity | 16%+ |
| Efficiency Ratio | Below 50% |
Notable Items Affecting Fourth Quarter 2017 Results; These Items are Excluded from the Presentation of Adjusted Results
- Additional income tax expense of $8.6 million was recorded to write down the Company’s net deferred tax asset as a result of the Tax Cuts and Jobs Act of 2017. This estimate is subject to additional procedures which could result in further adjustments in future periods.
- A $15.2 million gain on the sale of shares of Visa Class B stock was recorded in the fourth quarter. These shares were purchased in early 2017.
- Merger and acquisition related charges associated with the purchase of Palm Beach Community Bank and NorthStar Banking Corporation totaled $6.8 million. These charges primarily represent change in control payments, legal and investment banking fees, and technology contract termination fees associated with the two acquisitions.
Update on Hurricane Impacts
- The Company recorded a charge-off of $0.6 million related to a customer with a Caribbean export business which was severely impacted by the fall season hurricanes.
- Loan pipelines and production across all business lines were disrupted by the storms, the result of business interruption over multiple weeks in the fourth quarter.
Fourth Quarter 2017 Financial Highlights
Income Statement
- Net income was $13.0 million, or $0.28 per average common diluted share, compared to $14.2 million or $0.32 for the prior quarter and $10.8 million or $0.28 for the fourth quarter of 2016. For the year ended December 31, 2017, net income was $42.9 million, or $0.99 per average common diluted share, compared to $29.2 million or $0.78 for the year ended December 31, 2016. Adjusted net income1 was $17.3 million, or $0.37 per average common diluted share, compared to $15.1 million or $0.35 for the prior quarter and $11.8 million or $0.31 for the fourth quarter of 2016. For the year ended December 31, 2017, adjusted net income1 was $55.3 million, or $1.28 per average common diluted share, compared to $39.1 million or $1.04 for the year ended December 31, 2016.
- Net revenues were $74.9 million, an increase of $17.7 million or 31% compared to the prior quarter, and an increase of $27.5 million or 58% from the fourth quarter of 2016. For the year ended December 31, 2017, net revenues were $234.8 million, an increase of $57.4 million or 32% compared to the year ended December 31, 2016. Adjusted revenues1 were $59.6 million, an increase of $2.4 million, or 4%, from the prior quarter and an increase of $12.3 million, or 26% from the fourth quarter of 2016. For the year ended December 31, 2017, adjusted revenues1 were $219.5 million, an increase of $43.0 million or 24% compared to the year ended December 31, 2016.
- Net interest income totaled $48.2 million, an increase of $2.5 million or 5% from the prior quarter and an increase of $10.8 million or 29% from the fourth quarter of 2016. For the year ended December 31, 2017, net interest income totaled $176.3 million, an increase of $36.7 million or 26% compared to the year ended December 31, 2016.
- Noninterest income totaled $26.6 million, an increase of $15.2 million or 133% compared to the prior quarter and an increase of $16.7 million or 168% from the fourth quarter of 2016. For the year ended December 31, 2017, noninterest income totaled $58.5 million, an increase of $20.7 million or 55% compared to the year ended December 31, 2016. Adjusted noninterest income1 totaled $11.4 million for the quarter, in line with the prior quarter and an increase of $1.5 million or 15% from the fourth quarter of 2016. For the year ended December 31, 2017, adjusted noninterest income1 totaled $43.2 million, an increase of $6.3 million or 17% compared to the year ended December 31, 2016. During the quarter the Company sold $28.4 million of residential mortgages originated in prior quarters at a $477 thousand gross premium, recorded as mortgage banking fee income. Brokerage commissions and fees were impacted by a transition during the quarter to a new broker-dealer, and by the effects of Hurricane Irma. Looking forward, we expect the technology solution provided by the new broker-dealer to provide further opportunities for growth. A focus on spend stimulation in the quarter drove additional growth in debit interchange income.
- Net interest margin was 3.71% in the current quarter compared to 3.74% in the prior quarter and 3.56% in the fourth quarter of 2016. For the year ended December 31, 2017, the net interest margin was 3.73% compared to 3.63% for the year ended December 31, 2016. The net interest margin was affected this quarter when compared to the prior quarter by higher rates on deposits and lower non-cash related loan accretion.
- The provision for loan losses was $2.3 million compared to $0.7 million in the prior quarter and $1.0 million in the fourth quarter of 2016. The increase of $1.6 million in the current quarter primarily reflects the effect of higher charge-offs. As discussed in the hurricane update above, $0.6 million of the current quarter charge-offs related to a single borrower whose business exporting to the Caribbean was significantly impacted by the storms. For the year ended December 31, 2017, the provision for loan losses was $5.6 million compared to $2.4 million for the year ended December 31, 2016, primarily the result of organic growth in the portfolio.
- Noninterest expense was $39.2 million compared to $34.4 million in the prior quarter and $30.3 million in the fourth quarter of 2016. For the year ended December 31, 2017, noninterest expense was $150.0 million compared to $130.9 million in 2016. Adjusted noninterest expense1 was $31.4 million compared to $32.8 million in the prior quarter, and $28.9 million in the fourth quarter of 2016. For the year ended December 31, 2017, adjusted noninterest expense1 was $129.0 million compared to $114.2 million in 2016.
- The current quarter’s noninterest expense includes an adjustment of $2.0 million of performance related incentives, and merger and acquisition related charges totaling $6.8 million. The merger and acquisition related charges primarily represent change in control payments, legal fees and investment banking, and technology contract termination fees associated with the two acquisitions.
- Seacoast recorded a $20.4 million income tax provision in the current quarter, compared to $7.9 million in the prior quarter and $5.3 million in the fourth quarter of 2016. For the year ended December 31, 2017, the income tax provision was $36.3 million, compared to $14.9 million in 2016. This quarter’s tax provisioning included an $8.6 million charge for the write down of the company’s net deferred tax asset associated with the Tax Cuts and Jobs Act of 2017.
- Fourth quarter 2017 adjusted revenues1 increased 4% compared to prior quarter, while adjusted noninterest expense1 decreased 4%, providing 8% operating leverage. Full-year 2017 adjusted revenues1 increased 24% compared to prior year results, while adjusted noninterest expense1 increased 13%, providing 11% operating leverage.
- The efficiency ratio was 64.0% compared to 58.9% in the prior quarter and 62.4% in the fourth quarter of 2016. For the year ended December 31, 2017, the efficiency ratio was 66.7% compared to 72.1% in 2016. The adjusted efficiency ratio1 decreased to 52.6% compared to 57.7% in the prior quarter and 60.8% in the fourth quarter of 2016. For the year ended December 31, 2017 the adjusted efficiency ratio decreased to 57.0% compared to 64.6% in 2016.
Balance Sheet
- At December 31, 2017, the Company had total assets of $5.8 billion and total shareholders' equity of $689.7 million. Book value per share was $14.70 and tangible book value per share was $11.15, compared to $13.66 and $10.95, respectively, at September 30, 2017 and $11.45 and $9.37, respectively, at December 31, 2016.
- Net loans totaled $3.8 billion at December 31, 2017, an increase of $432 million or 13% compared to September 30, 2017, and an increase of $934 million or 33% from December 31, 2016. Excluding acquisitions, loans increased $278 million or 10% from December 31, 2016.
- During the fourth quarter, commercial originations were $132 million, consumer and small business originations were $80 million, and closed residential loans retained were $75.6 million.
- We continue to prudently manage CRE exposure. At 61% and 209% of total risk-based capital respectively, construction and land development and commercial real estate loan concentrations remain well below regulatory guidance.
- Pipelines (loans in underwriting and approval or approved and not yet closed) at year end continued to reflect the lingering effects of the fall season hurricanes. At December 31, 2017, pipelines were $119 million in commercial, $49 million in mortgage, and $39 million in consumer and small business.
- Commercial pipelines decreased by $36 million, or 23%, from prior quarter and have increased $30 million, or 34%, over year-ago levels.
- Mortgage pipelines were lower by $15 million, or 24%, from prior quarter and by $24 million, or 33%, compared to year-ago levels.
- Consumer and small business decreased from prior quarter by $8 million, or 17%, and were lower than year-ago levels by $7 million, or 16%.
- Total deposits were $4.6 billion as of December 31, 2017, an increase of $480 million, or 12%, compared to September 30, 2017 and an increase of $1.1 billion, or 30%, from December 31, 2016.
- During 2017, interest bearing deposits (interest bearing demand, savings and money markets deposits) increased $393 million, or 19%, to $2.4 billion, noninterest bearing demand deposits increased $252 million, or 22%, to $1.4 billion, and CDs increased $424 million, or 121%, to $776 million.
- Excluding acquired deposits, noninterest bearing deposits increased 7% and total deposits increased 4% compared to December 31, 2016.
- The Company’s balance sheet continues to be primarily core deposit funded. Core customer funding was $4.0 billion at December 31, 2017, compared to $3.6 billion at September 30, 2017 and $3.4 billion at December 31, 2016.
- Organic deposits grew 2% compared to prior quarter, with annualized quarterly growth of 10%.
- Overall cost of deposits in the fourth quarter was 0.29%, reflecting the significant value of the deposit franchise.
- Fourth quarter return on average assets (ROA) was 0.91%, compared to 1.06% in the prior quarter and 0.94% from the fourth quarter of 2016. Return on average tangible assets (ROTA) was 0.97%, compared to 1.12% in the prior quarter and 1.00% in the fourth quarter of 2016. Adjusted ROTA1 was 1.23% compared to 1.16% in the prior quarter and 1.05% in the fourth quarter of 2016.
Capital
- The common equity tier 1 capital ratio (CET1) was 12.0%, total capital ratio was 14.2% and the tier 1 leverage ratio was 10.6% at December 31, 2017.
- Tangible common equity to tangible assets was 9.4% at December 31, 2017, compared to 9.1% at September 30, 2017, and 7.7% at December 31, 2016.
Asset Quality
- Nonperforming loans to total loans outstanding was 0.47% at December 31, 2017, 0.42% at September 30, 2017, and 0.63% at December 31, 2016.
- Nonperforming assets to total assets was 0.44% at December 31, 2017, 0.40% at September 30, 2017 and 0.60% at December 31, 2016. Of the $25.7 million in nonperforming assets, $4 million related to five closed branch properties held as REO.
- The ratio of allowance for loan losses to total loans was 0.71% at December 31, 2017, 0.77% at September 30, 2017, and 0.81% at December 31, 2016. The ratio of allowance for loan losses to non-acquired loans was 0.90% at December 31, 2017, 0.91% at September 30, 2017, and 0.96% at December 31, 2016. The ratio of allowance for loan losses to acquired loans was 0.08% at December 31, 2017, 0.07% at September 30, 2017, and 0.03% at December 31, 2016.
| FINANCIAL HIGHLIGHTS | ||||||||||||||
| (Dollars in thousands, except per share data) | 4Q17 | 3Q17 | 2Q17 | 1Q17 | 4Q16 | |||||||||
| Selected Balance Sheet Data (at period end): | ||||||||||||||
| Total Assets | $ | 5,810,129 | $ | 5,340,299 | $ | 5,281,295 | $ | 4,769,775 | $ | 4,680,932 | ||||
| Gross Loans | 3,817,377 | 3,384,991 | 3,330,075 | 2,973,759 | 2,879,536 | |||||||||
| Total Deposits | 4,592,720 | 4,112,600 | 3,975,458 | 3,678,645 | 3,523,245 | |||||||||
| Performance Measures: | ||||||||||||||
| Net Income | $ | 13,047 | $ | 14,216 | $ | 7,676 | $ | 7,926 | $ | 10,771 | ||||
| Net Interest Margin | 3.71% | 3.74 % | 3.84 % | 3.63 % | 3.56 % | |||||||||
| Average Diluted Shares Outstanding (000) | 46,673 | 43,792 | 43,556 | 39,499 | 38,252 | |||||||||
| Diluted Earnings Per Share (EPS) | $ | 0.28 | $ | 0.32 | $ | 0.18 | $ | 0.20 | $ | 0.28 | ||||
| Return on (annualized): | ||||||||||||||
| Average Assets (ROA) | 0.91% | 1.06% | 0.61% | 0.68% | 0.94% | |||||||||
| Average Tangible Common Equity (ROTCE) | 10.7 | 12.5 | 7.3 | 8.8 | 12.5 | |||||||||
| Efficiency Ratio | 64.0 | 58.9 | 73.9 | 71.1 | 62.4 | |||||||||
| Adjusted Operating Measures 1: | ||||||||||||||
| Adjusted Net Income | $ | 17,261 | $ | 15,145 | $ | 12,665 | $ | 10,270 | $ | 11,803 | ||||
| Adjusted Diluted EPS | 0.37 | 0.35 | 0.29 | 0.26 | 0.31 | |||||||||
| Adjusted ROTA | 1.23% | 1.16% | 1.02% | 0.90% | 1.05% | |||||||||
| Adjusted ROTCE | 13.5 | 12.8 | 11.2 | 10.7 | 13.1 | |||||||||
| Adjusted Efficiency Ratio | 52.6 | 57.7 | 61.2 | 64.7 | 60.8 | |||||||||
| Adjusted Noninterest Expenses as a Percentage of Average Tangible Assets | 2.24 | 2.50 | 2.73 | 2.71 | 2.56 | |||||||||
| Other Data | ||||||||||||||
| Market Capitalization2 | $ | 1,182,796 | $ | 1,039,506 | $ | 1,047,361 | $ | 976,368 | $ | 838,762 | ||||
| Full Time Equivalent Employees | 805 | 762 | 759 | 743 | 725 | |||||||||
| Number of ATMs | 85 | 74 | 76 | 76 | 77 | |||||||||
| Full service banking offices | 51 | 45 | 45 | 46 | 47 | |||||||||
| Registered online users | 83,881 | 78,880 | 75,394 | 71,385 | 67,243 | |||||||||
| Registered mobile devices | 62,516 | 58,032 | 55,013 | 50,729 | 47,131 | |||||||||
1 Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures”
Effective in the first quarter of 2017, adjusted net income and adjusted noninterest expense exclude the effect of amortization of acquisition-related intangibles. Prior periods have been revised to conform with the current period presentation.
2 Common shares outstanding multiplied by closing bid price on last day of each period.
Fourth Quarter and 2017 Strategic Highlights
Vision 2020, which we rolled out in the first quarter of last year, connects innovation and investments over the coming years to desired changes in our operating model, and to enhanced digital customer experience and shareholder returns.
Our operational execution during 2017 has enabled us to remain on track to achieve our Vision 2020 objectives. In 2018, we’ll invest a portion of the tax savings associated with the Tax Cuts and Jobs Act of 2017 to accelerate the achievement of these objectives.
Modernizing How We Sell
- This year we continued our efforts to deepen customer relationships outside of our banking centers. The number of deposit accounts opened through our website and 24/7 customer support center grew by 12% year over year. Our Customer support center also originated $32.7 million in consumer and small business loans.
- Our Commercial Banking and Operations teams partnered to increase efficiency across the loan origination process with a focus on optimizing technology, improving cycle time, and enhancing vendor partnerships. This effort will continue well into 2018.
Lowering Our Cost to Serve
- Customer adoption of more convenient digital channels continues to grow. This summer, non-teller transactions surpassed teller transactions and 41% of checks are now deposited outside of the banking center network, compared to 37% in December of 2016. We expect this shift in customer preference to continue, requiring continued focus on building a digitally integrated business model.
Driving Improvements in How Our Business Operates
- This year we successfully renegotiated our agreement with a key technology and digital services provider. The agreement expands digital banking capabilities, improves service level agreements, and increases our ability to scale.
- In November, we consolidated our customer support center in Stuart, migrating all customer support operations to our Orlando location. The modernized, expanded site supports our 24/7 customer service model and our growth strategy.
Scaling and Evolving Our Culture
- In the first quarter of 2018, a Chief Technology Officer was added to the executive team.
- We also on-boarded key talent in the areas of data analysis, digital marketing, business-to-business marketing and compliance. These important additions to the Seacoast team help position us for future growth.
OTHER INFORMATION
Conference Call Information
Seacoast will host a conference call on Friday, January 26, 2018 at 10:00 a.m. (Eastern Time) to discuss the earnings results. Investors may call in (toll-free) by dialing (888) 517-2458 (passcode: 6006 509). Slides will be used during the conference call and may be accessed at Seacoast's website at SeacoastBanking.com by selecting "Presentations" under the heading "Investor Services." A replay of the call will be available for one month, beginning late afternoon of January 26, 2018 by dialing (888) 843-7419 and using passcode: 6006 509.
Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast's website at SeacoastBanking.com. The link is located in the subsection "Presentations" under the heading "Investor Services." Beginning the afternoon of January 26, 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 $5.8 billion in assets and $4.6 billion in deposits as of December 31, 2017. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, 51 traditional branches of its locally-branded wholly-owned subsidiary bank, Seacoast Bank, and five commercial banking centers. Offices stretch from Ft. 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 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, 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.
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, 2016, 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.
Charles M. Shaffer
Executive Vice President
Chief Financial Officer
(772) 221-7003
Chuck.Shaffer@seacoastbank.com
| FINANCIAL HIGHLIGHTS | (Unaudited) | ||||||||||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||||||||
| (Dollars in thousands, except per share data) | Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | |||||||||||||||
| 2017 | 2017 | 2017 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||
| Summary of Earnings | |||||||||||||||||||||
| Net income | $ | 13,047 | $ | 14,216 | $ | 7,676 | $ | 7,926 | $ | 10,771 | $ | 42,865 | $ | 29,202 | |||||||
| Net interest income (1) | 48,402 | 45,903 | 44,320 | 38,377 | 37,628 | 177,002 | 140,514 | ||||||||||||||
| Net interest margin (1), (2) | 3.71 | % | 3.74 | % | 3.84 | % | 3.63 | % | 3.56 | % | 3.73 | % | 3.63 | % | |||||||
| Performance Ratios | |||||||||||||||||||||
| Return on average assets-GAAP basis (2) | 0.91 | % | 1.06 | % | 0.61 | % | 0.68 | % | 0.94 | % | 0.82 | % | 0.69 | % | |||||||
| Return on average tangible assets (2),(3) | 0.97 | 1.12 | 0.66 | 0.74 | 1.00 | 0.88 | 0.75 | ||||||||||||||
| Adjusted return on average tangible assets (2), (3), (5) | 1.23 | 1.16 | 1.02 | 0.90 | 1.05 | 1.09 | 0.94 | ||||||||||||||
| Return on average shareholders' equity-GAAP basis (2) | 7.87 | 9.59 | 5.43 | 6.89 | 9.80 | 7.51 | 7.06 | ||||||||||||||
| Return on average tangible shareholders' equity-GAAP basis (2),(3) | 10.69 | 12.45 | 7.25 | 8.77 | 12.51 | 9.90 | 8.87 | ||||||||||||||
| Adjusted return on average tangible common equity (2), (3), (5) | 13.49 | 12.80 | 11.22 | 10.74 | 13.14 | 12.17 | 11.25 | ||||||||||||||
| Efficiency ratio (4) | 63.95 | 58.93 | 73.90 | 71.08 | 62.36 | 66.68 | 72.13 | ||||||||||||||
| Adjusted efficiency ratio (5) | 52.55 | 57.69 | 61.20 | 64.65 | 60.84 | 57.02 | 64.60 | ||||||||||||||
| Noninterest income to total revenue | 35.49 | 20.06 | 19.16 | 20.61 | 20.96 | 24.88 | 21.14 | ||||||||||||||
| Average equity to average assets | 11.50 | 11.06 | 11.17 | 9.93 | 9.56 | 10.96 | 9.85 | ||||||||||||||
| Per Share Data | |||||||||||||||||||||
| Net income diluted-GAAP basis | $ | 0.28 | $ | 0.32 | $ | 0.18 | $ | 0.20 | $ | 0.28 | $ | 0.99 | $ | 0.78 | |||||||
| Net income basic-GAAP basis | 0.29 | 0.33 | 0.18 | 0.20 | 0.29 | 1.01 | 0.79 | ||||||||||||||
| Adjusted earnings (5) | 0.37 | 0.35 | 0.29 | 0.26 | 0.31 | 1.28 | 1.04 | ||||||||||||||
| Book value per share common | 14.70 | 13.66 | 13.29 | 12.34 | 11.45 | 14.70 | 11.45 | ||||||||||||||
| Tangible book value per share | 11.15 | 10.95 | 10.55 | 10.41 | 9.37 | 11.15 | 9.37 | ||||||||||||||
| Cash dividends declared | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||
| (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 Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets. | |||||||||||||||||||||
| (4) Defined as (noninterest expense less 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). | |||||||||||||||||||||
| (5) Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures." | |||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | (Unaudited) | ||||||||||||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||||||||||
| QUARTER | YTD | ||||||||||||||||||||||
| 2017 | 2016 | December 31, | December 31, | ||||||||||||||||||||
| (Dollars in thousands, except share and per share data) | Fourth | Third | Second | First | Fourth | 2017 | 2016 | ||||||||||||||||
| Interest on securities: | |||||||||||||||||||||||
| Taxable | $ | 9,153 | $ | 8,823 | $ | 8,379 | $ | 8,087 | $ | 6,880 | $ | 34,442 | $ | 26,133 | |||||||||
| Nontaxable | 231 | 189 | 206 | 287 | 287 | 913 | 1,036 | ||||||||||||||||
| Interest and fees on loans | 43,322 | 40,403 | 38,209 | 31,891 | 32,007 | 153,825 | 119,217 | ||||||||||||||||
| Interest on federal funds sold and other investments | 638 | 664 | 604 | 510 | 517 | 2,416 | 1,669 | ||||||||||||||||
| Total Interest Income | 53,344 | 50,079 | 47,398 | 40,775 | 39,691 | 191,596 | 148,055 | ||||||||||||||||
| Interest on deposits | 1,246 | 930 | 854 | 624 | 622 | 3,654 | 2,593 | ||||||||||||||||
| Interest on time certificates | 2,032 | 1,266 | 814 | 566 | 598 | 4,678 | 2,074 | ||||||||||||||||
| Interest on borrowed money | 1,840 | 2,134 | 1,574 | 1,420 | 1,046 | 6,968 | 3,800 | ||||||||||||||||
| Total Interest Expense | 5,118 | 4,330 | 3,242 | 2,610 | 2,266 | 15,300 | 8,467 | ||||||||||||||||
| Net Interest Income | 48,226 | 45,749 | 44,156 | 38,165 | 37,425 | 176,296 | 139,588 | ||||||||||||||||
| Provision for loan losses | 2,263 | 680 | 1,401 | 1,304 | 1,000 | 5,648 | 2,411 | ||||||||||||||||
| Net Interest Income After Provision for Loan Losses | 45,963 | 45,069 | 42,755 | 36,861 | 36,425 | 170,648 | 137,177 | ||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||
| Service charges on deposit accounts | 2,566 | 2,626 | 2,435 | 2,422 | 2,612 | 10,049 | 9,669 | ||||||||||||||||
| Trust fees | 941 | 967 | 917 | 880 | 969 | 3,705 | 3,433 | ||||||||||||||||
| Mortgage banking fees | 1,487 | 2,138 | 1,272 | 1,552 | 1,616 | 6,449 | 5,864 | ||||||||||||||||
| Brokerage commissions and fees | 273 | 351 | 351 | 377 | 480 | 1,352 | 2,044 | ||||||||||||||||
| Marine finance fees | 313 | 137 | 326 | 134 | 115 | 910 | 673 | ||||||||||||||||
| Interchange income | 2,836 | 2,582 | 2,671 | 2,494 | 2,334 | 10,583 | 9,227 | ||||||||||||||||
| Other deposit based EFT fees | 111 | 100 | 114 | 140 | 125 | 465 | 477 | ||||||||||||||||
| BOLI income | 1,100 | 836 | 757 | 733 | 611 | 3,426 | 2,213 | ||||||||||||||||
| Other | 1,750 | 1,744 | 1,624 | 1,173 | 1,060 | 6,291 | 3,827 | ||||||||||||||||
| 11,377 | 11,481 | 10,467 | 9,905 | 9,922 | 43,230 | 37,427 | |||||||||||||||||
| Gain on sale of VISA stock | 15,153 | 0 | 0 | 0 | 0 | 15,153 | 0 | ||||||||||||||||
| Securities gains/(losses), net | 112 | (47 | ) | 21 | 0 | 7 | 86 | 368 | |||||||||||||||
| Total Noninterest Income | 26,642 | 11,434 | 10,488 | 9,905 | 9,929 | 58,469 | 37,795 | ||||||||||||||||
| Noninterest expenses: | |||||||||||||||||||||||
| Salaries and wages | 16,321 | 15,627 | 18,375 | 15,369 | 12,476 | 65,692 | 54,096 | ||||||||||||||||
| Employee benefits | 2,812 | 2,917 | 2,935 | 3,068 | 2,475 | 11,732 | 9,903 | ||||||||||||||||
| Outsourced data processing costs | 4,160 | 3,231 | 3,456 | 3,269 | 3,076 | 14,116 | 13,516 | ||||||||||||||||
| Telephone / data lines | 538 | 573 | 648 | 532 | 502 | 2,291 | 2,108 | ||||||||||||||||
| Occupancy | 3,265 | 2,447 | 4,421 | 3,157 | 2,830 | 13,290 | 13,122 | ||||||||||||||||
| Furniture and equipment | 1,806 | 1,191 | 1,679 | 1,391 | 1,211 | 6,067 | 4,720 | ||||||||||||||||
| Marketing | 1,490 | 1,298 | 1,074 | 922 | 847 | 4,784 | 3,633 | ||||||||||||||||
| Legal and professional fees | 3,054 | 2,560 | 3,276 | 2,132 | 2,370 | 11,022 | 9,596 | ||||||||||||||||
| FDIC assessments | 558 | 548 | 650 | 570 | 661 | 2,326 | 2,365 | ||||||||||||||||
| Amortization of intangibles | 964 | 839 | 839 | 719 | 719 | 3,361 | 2,486 | ||||||||||||||||
| Asset dispositions expense | 105 | 117 | 136 | 53 | 84 | 411 | 553 | ||||||||||||||||
| Net loss/(gain) on other real estate owned and repossessed assets | (112 | ) | (414 | ) | 161 | (346 | ) | (161 | ) | (711 | ) | (509 | ) | ||||||||||
| Early redemption cost for Federal Home Loan Bank advances | 0 | 0 | 0 | 0 | 0 | 0 | 1,777 | ||||||||||||||||
| Other | 4,223 | 3,427 | 3,975 | 3,910 | 3,207 | 15,535 | 13,515 | ||||||||||||||||
| Total Noninterest Expenses | 39,184 | 34,361 | 41,625 | 34,746 | 30,297 | 149,916 | 130,881 | ||||||||||||||||
| Income Before Income Taxes | 33,421 | 22,142 | 11,618 | 12,020 | 16,057 | 79,201 | 44,091 | ||||||||||||||||
| Income taxes | 20,374 | 7,926 | 3,942 | 4,094 | 5,286 | 36,336 | 14,889 | ||||||||||||||||
| Net Income | $ | 13,047 | $ | 14,216 | $ | 7,676 | $ | 7,926 | $ | 10,771 | $ | 42,865 | $ | 29,202 | |||||||||
| Per share of common stock: | |||||||||||||||||||||||
| Net income diluted | $ | 0.28 | $ | 0.32 | $ | 0.18 | $ | 0.20 | $ | 0.28 | $ | 0.99 | $ | 0.78 | |||||||||
| Net income basic | 0.29 | 0.33 | 0.18 | 0.20 | 0.29 | 1.01 | 0.79 | ||||||||||||||||
| Cash dividends declared | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||
| Average diluted shares outstanding | 46,672,538 | 43,792,108 | 43,556,285 | 39,498,835 | 38,252,351 | 43,350,314 | 37,508,046 | ||||||||||||||||
| Average basic shares outstanding | 45,541,099 | 43,151,248 | 42,841,152 | 38,839,284 | 37,603,789 | 42,613,086 | 36,872,007 | ||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | (Unaudited) | ||||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
| (Dollars in thousands, except share data) | 2017 | 2017 | 2017 | 2017 | 2016 | ||||||||||
| Assets | |||||||||||||||
| Cash and due from banks | $ | 104,039 | $ | 114,621 | 88,133 | $ | 133,923 | $ | 82,520 | ||||||
| Interest bearing deposits with other banks | 5,465 | 10,657 | 20,064 | 10,914 | 27,124 | ||||||||||
| Total Cash and Cash Equivalents | 109,504 | 125,278 | 108,197 | 144,837 | 109,644 | ||||||||||
| Time deposits with other banks | 12,553 | 14,591 | 16,426 | 0 | 0 | ||||||||||
| Securities: | |||||||||||||||
| Available for sale (at fair value) | 955,804 | 996,799 | 1,016,744 | 909,275 | 950,503 | ||||||||||
| Held to maturity (at amortized cost) | 416,863 | 374,773 | 397,096 | 379,657 | 372,498 | ||||||||||
| Total Securities | 1,372,667 | 1,371,572 | 1,413,840 | 1,288,932 | 1,323,001 | ||||||||||
| Loans held for sale | 24,306 | 29,447 | 22,262 | 16,326 | 15,332 | ||||||||||
| Loans | 3,817,377 | 3,384,991 | 3,330,075 | 2,973,759 | 2,879,536 | ||||||||||
| Less: Allowance for loan losses | (27,122 | ) | (26,232 | ) | (26,000 | ) | (24,562 | ) | (23,400 | ) | |||||
| Net Loans | 3,790,255 | 3,358,759 | 3,304,075 | 2,949,197 | 2,856,136 | ||||||||||
| Bank premises and equipment, net | 66,883 | 57,092 | 56,765 | 58,611 | 58,684 | ||||||||||
| Other real estate owned | 7,640 | 7,142 | 8,497 | 7,885 | 9,949 | ||||||||||
| Goodwill | 147,578 | 101,747 | 101,739 | 64,649 | 64,649 | ||||||||||
| Other intangible assets, net | 19,099 | 16,102 | 16,941 | 13,853 | 14,572 | ||||||||||
| Bank owned life insurance | 123,981 | 118,762 | 88,003 | 85,237 | 84,580 | ||||||||||
| Net deferred tax assets | 25,417 | 43,951 | 52,195 | 55,834 | 60,818 | ||||||||||
| Other assets | 110,246 | 95,856 | 92,355 | 84,414 | 83,567 | ||||||||||
| Total Assets | $ | 5,810,129 | $ | 5,340,299 | $ | 5,281,295 | $ | 4,769,775 | $ | 4,680,932 | |||||
| Liabilities and Shareholders' Equity | |||||||||||||||
| Liabilities | |||||||||||||||
| Deposits | |||||||||||||||
| Noninterest demand | $ | 1,400,227 | $ | 1,284,118 | $ | 1,308,458 | $ | 1,225,124 | $ | 1,148,309 | |||||
| Interest-bearing demand | 1,050,755 | 935,097 | 934,861 | 870,457 | 873,727 | ||||||||||
| Savings | 434,346 | 379,499 | 376,825 | 363,140 | 346,662 | ||||||||||
| Money market | 931,458 | 870,788 | 861,119 | 821,606 | 802,697 | ||||||||||
| Other time certificates | 202,430 | 155,027 | 155,265 | 153,840 | 159,887 | ||||||||||
| Brokered time certificates | 217,385 | 281,551 | 149,270 | 66,741 | 7,342 | ||||||||||
| Time certificates of $100,000 or more | 356,119 | 206,520 | 189,660 | 177,737 | 184,621 | ||||||||||
| Total Deposits | 4,592,720 | 4,112,600 | 3,975,458 | 3,678,645 | 3,523,245 | ||||||||||
| Securities sold under agreements to repurchase | 216,094 | 142,153 | 167,558 | 183,107 | 204,202 | ||||||||||
| Federal Home Loan Bank borrowings | 211,000 | 389,000 | 395,000 | 302,000 | 415,000 | ||||||||||
| Subordinated debt | 70,521 | 70,451 | 70,381 | 70,311 | 70,241 | ||||||||||
| Other liabilities | 30,130 | 31,654 | 95,521 | 33,218 | 32,847 | ||||||||||
| Total Liabilities | 5,120,465 | 4,745,858 | 4,703,918 | 4,267,281 | 4,245,535 | ||||||||||
| Shareholders' Equity | |||||||||||||||
| Common stock | 4,693 | 4,351 | 4,339 | 4,075 | 3,802 | ||||||||||
| Additional paid in capital | 661,632 | 576,825 | 574,842 | 510,806 | 454,001 | ||||||||||
| Accumulated earnings/(deficit) | 29,208 | 16,161 | 1,945 | (5,731 | ) | (13,657 | ) | ||||||||
| Treasury stock | (2,359 | ) | (1,730 | ) | (1,768 | ) | (1,172 | ) | (1,236 | ) | |||||
| 693,174 | 595,607 | 579,358 | 507,978 | 442,910 | |||||||||||
| Accumulated other comprehensive income/(loss), net | (3,510 | ) | (1,166 | ) | (1,981 | ) | (5,484 | ) | (7,513 | ) | |||||
| Total Shareholders' Equity | 689,664 | 594,441 | 577,377 | 502,494 | 435,397 | ||||||||||
| Total Liabilities & Shareholders' Equity | $ | 5,810,129 | $ | 5,340,299 | $ | 5,281,295 | $ | 4,769,775 | $ | 4,680,932 | |||||
| Common Shares Outstanding | 46,917,735 | 43,512,179 | 43,458,973 | 40,715,938 | 38,021,835 | ||||||||||
| Note: The balance sheet at December 31, 2016 has been derived from the audited financial statements at that date. | |||||||||||||||
| CONSOLIDATED QUARTERLY FINANCIAL DATA | (Unaudited) | |||||||||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | ||||||||||||||||||||
| QUARTERS | ||||||||||||||||||||
| 2017 | 2016 | |||||||||||||||||||
| (Dollars in thousands) | Fourth | Third | Second | First | Fourth | |||||||||||||||
| Credit Analysis | ||||||||||||||||||||
| Net charge-offs (recoveries) - non-acquired loans | $ | 1,475 | $ | 612 | $ | 304 | $ | 211 | $ | 87 | ||||||||||
| Net charge-offs (recoveries) - acquired loans | (139 | ) | (333 | ) | (405 | ) | (118 | ) | 141 | |||||||||||
| Total net charge-offs (recoveries) | $ | 1,336 | $ | 279 | $ | (101 | ) | $ | 93 | $ | 228 | |||||||||
| TDR valuation adjustments | $ | 37 | $ | 169 | $ | 64 | $ | 49 | $ | 55 | ||||||||||
| Net charge-offs (recoveries) to average loans - non-acquired loans | 0.16 | % | 0.07 | % | 0.04 | % | 0.03 | % | 0.01 | % | ||||||||||
| Net charge-offs (recoveries) to average loans - acquired loans | (0.02 | ) | (0.04 | ) | (0.05 | ) | (0.02 | ) | 0.02 | |||||||||||
| Total net charge-offs (recoveries) to average loans | 0.14 | 0.03 | (0.01 | ) | 0.01 | 0.03 | ||||||||||||||
| Loan loss provision (recapture) - non-acquired loans | $ | 2,053 | $ | 795 | $ | 1,690 | $ | 1,504 | $ | 1,161 | ||||||||||
| Loan loss provision (recapture) - acquired loans | 210 | (115 | ) | (289 | ) | (200 | ) | (161 | ) | |||||||||||
| Total loan loss provision | $ | 2,263 | $ | 680 | $ | 1,401 | $ | 1,304 | $ | 1,000 | ||||||||||
| Allowance for loan losses - non-acquired loans | $ | 26,363 | $ | 25,822 | $ | 25,809 | $ | 24,487 | $ | 23,243 | ||||||||||
| Allowance for loan losses - acquired loans | 759 | 410 | 191 | 75 | 157 | |||||||||||||||
| Total allowance for loan losses | $ | 27,122 | $ | 26,232 | $ | 26,000 | $ | 24,562 | $ | 23,400 | ||||||||||
| Non-acquired loans at end of period | $ | 2,922,609 | $ | 2,837,490 | $ | 2,722,866 | $ | 2,572,549 | $ | 2,425,850 | ||||||||||
| Purchased noncredit impaired loans at end of period | 877,351 | 537,057 | 594,077 | 388,228 | 440,690 | |||||||||||||||
| Purchased credit impaired loans at end of period | 17,417 | 10,443 | 13,132 | 12,982 | 12,996 | |||||||||||||||
| Total loans | $ | 3,817,377 | $ | 3,384,990 | $ | 3,330,075 | $ | 2,973,759 | $ | 2,879,536 | ||||||||||
| Non-acquired loans allowance for loan losses to non-acquired loans at end of period | 0.90 | % | 0.91 | % | 0.95 | % | 0.95 | % | 0.96 | % | ||||||||||
| Total allowance for loan losses to total loans at end of period | 0.71 | 0.77 | 0.78 | 0.83 | 0.81 | |||||||||||||||
| Acquired loans allowance for loan losses to acquired loans at end of period | 0.08 | 0.07 | 0.03 | 0.02 | 0.03 | |||||||||||||||
| Discount for credit losses to acquired loans at end of period | 2.33 | 2.77 | 3.37 | 4.25 | 4.18 | |||||||||||||||
| End of Period | ||||||||||||||||||||
| Nonperforming loans - non-acquired loans | $ | 11,088 | $ | 10,877 | $ | 10,541 | $ | 10,557 | $ | 11,023 | ||||||||||
| Nonperforming loans - acquired loans | 6,955 | 3,498 | 6,632 | 6,428 | 7,048 | |||||||||||||||
| Other real estate owned - non-acquired | 2,246 | 1,748 | 1,748 | 2,790 | 3,041 | |||||||||||||||
| Other real estate owned - acquired | 1,632 | 1,632 | 1,645 | 1,203 | 1,203 | |||||||||||||||
| Bank branches closed included in other real estate owned | 3,762 | 3,762 | 5,104 | 3,892 | 5,705 | |||||||||||||||
| Total nonperforming assets | $ | 25,683 | $ | 21,517 | $ | 25,670 | $ | 24,870 | $ | 28,020 | ||||||||||
| Restructured loans (accruing) | $ | 15,559 | $ | 16,181 | $ | 16,941 | $ | 18,125 | $ | 17,711 | ||||||||||
| Nonperforming loans to loans at end of period - non-acquired loans | 0.38 | % | 0.38 | % | 0.39 | % | 0.41 | % | 0.45 | % | ||||||||||
| Nonperforming loans to loans at end of period - acquired loans | 0.78 | 0.64 | 1.09 | 1.60 | 1.55 | |||||||||||||||
| Allowance for loan losses to nonperforming loans - non-acquired loans | 237.76 | 237.40 | 244.84 | 231.95 | 210.86 | |||||||||||||||
| Total nonperforming loans to loans at end of period | 0.47 | 0.42 | 0.52 | 0.57 | 0.63 | |||||||||||||||
| Nonperforming assets to total assets - non-acquired | 0.29 | % | 0.31 | % | 0.33 | % | 0.36 | % | 0.42 | % | ||||||||||
| Nonperforming assets to total assets - acquired | 0.15 | 0.10 | 0.16 | 0.16 | 0.18 | |||||||||||||||
| Total nonperforming assets to total assets | 0.44 | 0.40 | 0.49 | 0.52 | 0.60 | |||||||||||||||
| Average Balances | ||||||||||||||||||||
| Total average assets | $ | 5,716,230 | $ | 5,316,119 | $ | 5,082,002 | $ | 4,699,745 | $ | 4,572,188 | ||||||||||
| Less: Intangible assets | 149,432 | 118,364 | 114,563 | 78,878 | 79,620 | |||||||||||||||
| Total average tangible assets | $ | 5,566,798 | $ | 5,197,755 | $ | 4,967,439 | $ | 4,620,867 | $ | 4,492,568 | ||||||||||
| Total average equity | $ | 657,100 | $ | 587,919 | $ | 567,448 | $ | 466,847 | $ | 437,077 | ||||||||||
| Less: Intangible assets | 149,432 | 118,364 | 114,563 | 78,878 | 79,620 | |||||||||||||||
| Total average tangible equity | $ | 507,668 | $ | 469,555 | $ | 452,885 | $ | 387,969 | $ | 357,457 | ||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| LOANS | 2017 | 2017 | 2017 | 2017 | 2016 | |||||||||||||||
| Construction and land development | $ | 343,195 | $ | 245,151 | $ | 230,574 | $ | 174,992 | $ | 160,116 | ||||||||||
| Commercial real estate | 1,639,991 | 1,478,091 | 1,464,068 | 1,354,140 | 1,357,592 | |||||||||||||||
| Residential real estate | 1,038,740 | 941,169 | 991,144 | 893,674 | 836,787 | |||||||||||||||
| Installment loans to individuals | 188,712 | 184,485 | 178,595 | 165,039 | 153,945 | |||||||||||||||
| Commercial and financial | 606,015 | 535,457 | 465,138 | 385,189 | 370,589 | |||||||||||||||
| Other loans | 724 | 637 | 556 | 725 | 507 | |||||||||||||||
| Total Loans | $ | 3,817,377 | $ | 3,384,990 | $ | 3,330,075 | $ | 2,973,759 | $ | 2,879,536 | ||||||||||
| CONSOLIDATED QUARTERLY FINANCIAL DATA | (Unaudited) | ||||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
| (Dollars in thousands) | 2017 | 2017 | 2017 | 2017 | 2016 | ||||||||||
| Customer Relationship Funding | |||||||||||||||
| Noninterest demand | |||||||||||||||
| Commercial | $ | 1,073,539 | $ | 997,749 | $ | 995,720 | $ | 916,940 | $ | 860,449 | |||||
| Retail | 253,454 | 217,809 | 238,506 | 234,109 | 220,134 | ||||||||||
| Public funds | 50,837 | 43,686 | 47,691 | 52,126 | 48,690 | ||||||||||
| Other | 22,397 | 24,874 | 26,541 | 21,949 | 19,036 | ||||||||||
| 1,400,227 | 1,284,118 | 1,308,458 | 1,225,124 | 1,148,309 | |||||||||||
| Interest-bearing demand | |||||||||||||||
| Commercial | 157,272 | 156,176 | 155,178 | 117,629 | 102,320 | ||||||||||
| Retail | 702,616 | 670,705 | 659,906 | 613,121 | 591,808 | ||||||||||
| Public funds | 190,867 | 108,216 | 119,777 | 139,707 | 179,599 | ||||||||||
| 1,050,755 | 935,097 | 934,861 | 870,457 | 873,727 | |||||||||||
| Total transaction accounts | |||||||||||||||
| Commercial | 1,230,811 | 1,153,925 | 1,150,898 | 1,034,569 | 962,769 | ||||||||||
| Retail | 956,070 | 888,514 | 898,412 | 847,230 | 811,942 | ||||||||||
| Public funds | 241,704 | 151,902 | 167,468 | 191,833 | 228,289 | ||||||||||
| Other | 22,397 | 24,874 | 26,541 | 21,949 | 19,036 | ||||||||||
| 2,450,982 | 2,219,215 | 2,243,319 | 2,095,581 | 2,022,036 | |||||||||||
| Savings | 434,346 | 379,499 | 376,825 | 363,140 | 346,662 | ||||||||||
| Money market | |||||||||||||||
| Commercial | 375,471 | 360,567 | 351,871 | 313,094 | 286,879 | ||||||||||
| Retail | 471,086 | 431,325 | 427,575 | 414,886 | 411,696 | ||||||||||
| Public funds | 84,901 | 78,896 | 81,673 | 93,626 | 104,122 | ||||||||||
| 931,458 | 870,788 | 861,119 | 821,606 | 802,697 | |||||||||||
| Time certificates of deposit | 775,934 | 643,098 | 494,195 | 398,318 | 351,850 | ||||||||||
| Total Deposits | $ | 4,592,720 | $ | 4,112,600 | $ | 3,975,458 | $ | 3,678,645 | $ | 3,523,245 | |||||
| Customer sweep accounts | $ | 216,094 | $ | 142,153 | $ | 167,558 | $ | 183,107 | $ | 204,202 | |||||
| Total core customer funding (1) | $ | 4,032,880 | $ | 3,611,655 | $ | 3,648,821 | $ | 3,463,434 | $ | 3,375,597 | |||||
| (1) Total deposits and customer sweep accounts, excluding certificates of deposits. | |||||||||||||||
| AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES (1) | (Unaudited) | ||||||||||||||||||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||||||||||||||||
| 2017 | 2016 | ||||||||||||||||||||||||||||
| Fourth Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | Average | Yield/ | ||||||||||||||||||||||||
| (Dollars in thousands) | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Earning assets: | |||||||||||||||||||||||||||||
| Securities: | |||||||||||||||||||||||||||||
| Taxable | $ | 1,369,921 | $ | 9,153 | 2.67 | % | $ | 1,356,276 | $ | 8,823 | 2.60 | % | $ | 1,251,015 | $ | 6,880 | 2.20 | % | |||||||||||
| Nontaxable | 31,282 | 354 | 4.53 | 26,256 | 290 | 4.42 | 28,589 | 441 | 6.17 | ||||||||||||||||||||
| Total Securities | 1,401,203 | 9,507 | 2.71 | 1,382,532 | 9,113 | 2.64 | 1,279,604 | 7,321 | 2.29 | ||||||||||||||||||||
| Federal funds sold and other | |||||||||||||||||||||||||||||
| investments | 79,025 | 638 | 3.20 | 76,773 | 664 | 3.43 | 90,437 | 517 | 2.28 | ||||||||||||||||||||
| Loans, net | 3,691,344 | 43,375 | 4.66 | 3,407,376 | 40,456 | 4.71 | 2,833,895 | 32,056 | 4.50 | ||||||||||||||||||||
| Total Earning Assets | 5,171,572 | 53,520 | 4.11 | 4,866,681 | 50,233 | 4.10 | 4,203,936 | 39,894 | 3.78 | ||||||||||||||||||||
| Allowance for loan losses | (26,298 | ) | (26,299 | ) | (22,819 | ) | |||||||||||||||||||||||
| Cash and due from banks | 121,109 | 99,864 | 90,082 | ||||||||||||||||||||||||||
| Premises and equipment | 64,121 | 57,023 | 59,108 | ||||||||||||||||||||||||||
| Intangible assets | 149,432 | 118,364 | 79,620 | ||||||||||||||||||||||||||
| Bank owned life insurance | 123,272 | 95,759 | 48,954 | ||||||||||||||||||||||||||
| Other assets | 113,022 | 104,727 | 113,307 | ||||||||||||||||||||||||||
| Total Assets | $ | 5,716,230 | $ | 5,316,119 | $ | 4,572,188 | |||||||||||||||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||
| Interest-bearing demand | $ | 976,295 | $ | 367 | 0.15 | % | $ | 927,278 | $ | 273 | 0.12 | % | $ | 812,056 | $ | 149 | 0.07 | % | |||||||||||
| Savings | 431,124 | 94 | 0.09 | 377,729 | 52 | 0.05 | 343,753 | 44 | 0.05 | ||||||||||||||||||||
| Money market | 929,914 | 785 | 0.33 | 870,166 | 605 | 0.28 | 824,440 | 429 | 0.21 | ||||||||||||||||||||
| Time deposits | 761,720 | 2,032 | 1.06 | 548,092 | 1,266 | 0.92 | 360,712 | 598 | 0.66 | ||||||||||||||||||||
| Federal funds purchased and | |||||||||||||||||||||||||||||
| securities sold under agreements to repurchase | 166,006 | 231 | 0.55 | 165,160 | 204 | 0.49 | 184,612 | 110 | 0.24 | ||||||||||||||||||||
| Federal Home Loan Bank borrowings | 320,380 | 968 | 1.20 | 439,755 | 1,293 | 1.17 | 339,457 | 392 | 0.46 | ||||||||||||||||||||
| Other borrowings | 70,480 | 641 | 3.61 | 70,409 | 637 | 3.59 | 70,197 | 544 | 3.08 | ||||||||||||||||||||
| Total Interest-Bearing Liabilities | 3,655,919 | 5,118 | 0.56 | 3,398,589 | 4,330 | 0.51 | 2,935,227 | 2,266 | 0.31 | ||||||||||||||||||||
| Noninterest demand | 1,373,403 | 1,276,779 | 1,167,687 | ||||||||||||||||||||||||||
| Other liabilities | 29,808 | 52,832 | 32,197 | ||||||||||||||||||||||||||
| Total Liabilities | 5,059,130 | 4,728,200 | 4,135,111 | ||||||||||||||||||||||||||
| Shareholders' equity | 657,100 | 587,919 | 437,077 | ||||||||||||||||||||||||||
| Total Liabilities & Equity | $ | 5,716,230 | $ | 5,316,119 | $ | 4,572,188 | |||||||||||||||||||||||
| Interest expense as a % of earning assets | 0.39 | % | 0.35 | % | 0.21 | % | |||||||||||||||||||||||
| Net interest income as a % of earning assets | $ | 48,402 | 3.71 | % | $ | 45,903 | 3.74 | % | $ | 37,628 | 3.56 | % | |||||||||||||||||
| (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. | |||||||||||||||||||||||||||||
| AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES (1) | (Unaudited) | ||||||||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||||||
| 2017 | 2016 | ||||||||||||||||||
| Year to Date | Year to Date | ||||||||||||||||||
| Average | Yield/ | Average | Yield/ | ||||||||||||||||
| (Dollars in thousands) | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||
| Assets | |||||||||||||||||||
| Earning assets: | |||||||||||||||||||
| Securities: | |||||||||||||||||||
| Taxable | $ | 1,316,972 | $ | 34,442 | 2.61 | % | $ | 1,174,627 | $ | 26,133 | 2.22 | % | |||||||
| Nontaxable | 28,369 | 1,401 | 4.94 | 25,841 | 1,592 | 6.16 | |||||||||||||
| Total Securities | 1,345,341 | 35,843 | 2.66 | 1,200,468 | 27,725 | 2.31 | |||||||||||||
| Federal funds sold and other | |||||||||||||||||||
| investments | 71,352 | 2,416 | 3.39 | 75,442 | 1,669 | 2.21 | |||||||||||||
| Loans, net | 3,323,403 | 154,043 | 4.64 | 2,584,389 | 119,587 | 4.63 | |||||||||||||
| Total Earning Assets | 4,740,096 | 192,302 | 4.06 | 3,860,299 | 148,981 | 3.86 | |||||||||||||
| Allowance for loan losses | (25,485 | ) | (21,131 | ) | |||||||||||||||
| Cash and due from banks | 106,710 | 88,919 | |||||||||||||||||
| Premises and equipment | 59,842 | 60,470 | |||||||||||||||||
| Intangible assets | 115,511 | 66,611 | |||||||||||||||||
| Bank owned life insurance | 97,939 | 45,009 | |||||||||||||||||
| Other assets | 112,004 | 101,645 | |||||||||||||||||
| Total Assets | $ | 5,206,617 | $ | 4,201,822 | |||||||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||
| Interest-bearing demand | $ | 922,353 | $ | 1,065 | 0.12 | % | $ | 764,917 | $ | 616 | 0.08 | % | |||||||
| Savings | 385,515 | 241 | 0.06 | 325,371 | 161 | 0.05 | |||||||||||||
| Money market | 868,427 | 2,348 | 0.27 | 791,998 | 1,816 | 0.23 | |||||||||||||
| Time deposits | 523,646 | 4,678 | 0.89 | 351,646 | 2,074 | 0.59 | |||||||||||||
| Federal funds purchased and | |||||||||||||||||||
| securities sold under agreements to repurchase | 171,686 | 782 | 0.46 | 187,560 | 484 | 0.26 | |||||||||||||
| Federal Home Loan Bank borrowings | 377,396 | 3,743 | 0.99 | 198,268 | 1,256 | 0.63 | |||||||||||||
| Other borrowings | 70,377 | 2,443 | 3.47 | 70,097 | 2,060 | 2.94 | |||||||||||||
| Total Interest-Bearing Liabilities | 3,319,400 | 15,300 | 0.46 | 2,689,857 | 8,467 | 0.31 | |||||||||||||
| Noninterest demand | 1,279,825 | 1,066,463 | |||||||||||||||||
| Other liabilities | 36,993 | 31,628 | |||||||||||||||||
| Total Liabilities | 4,636,218 | 3,787,948 | |||||||||||||||||
| Shareholders' equity | 570,399 | 413,874 | |||||||||||||||||
| Total Liabilities & Equity | $ | 5,206,617 | $ | 4,201,822 | |||||||||||||||
| Interest expense as a % of earning assets | 0.32 | % | 0.22 | % | |||||||||||||||
| Net interest income as a % of earning assets | $ | 177,002 | 3.73 | % | $ | 140,514 | 3.63 | % | |||||||||||
| (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. | |||||||||||||||||||
| Explanation of Certain Unaudited Non-GAAP Financial Measures |
| This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance. The Company believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance and if not provided would be requested by the investor community. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently. The Company provides reconciliations between GAAP and these non-GAAP measures. These disclosures should not be considered an alternative to GAAP. Effective in the first quarter of 2017, adjusted net income and adjusted noninterest expense exclude the effect of amortization of acquisition-related intangibles. Prior periods have been revised to conform with the current period presentation. |
| QUARTER | YTD | ||||||||||||||||||||
| (Dollars in thousands except per share data) | Fourth | Third | Second | First | Fourth | December 31, | December 31, | ||||||||||||||
| 2017 | 2017 | 2017 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||
| $ | 13,047 | $ | 14,216 | $ | 7,676 | $ | 7,926 | $ | 10,771 | $ | 42,865 | $ | 29,202 | ||||||||
| Net income | |||||||||||||||||||||
| BOLI income (benefits upon death) | 0 | 0 | 0 | 0 | 0 | 0 | (464) | ||||||||||||||
| Gain on Sale of Visa Class B Shares | (15,153) | 0 | 0 | 0 | 0 | (15,153) | 0 | ||||||||||||||
| Security (gains) / losses | (112) | 47 | (21) | 0 | (7) | (86) | (368) | ||||||||||||||
| Total Adjustments to Revenue | (15,265) | 47 | (21) | 0 | (7) | (15,239) | (832) | ||||||||||||||
| Merger related charges | 6,817 | 491 | 5,081 | 533 | 561 | 12,922 | 9,028 | ||||||||||||||
| Amortization of intangibles | 963 | 839 | 839 | 719 | 719 | 3,360 | 2,486 | ||||||||||||||
| Business continuity expenses - Hurricane Irma | 0 | 352 | 0 | 0 | 0 | 352 | 0 | ||||||||||||||
| Branch reductions and other expense initiatives | 0 | (127) | 1,876 | 2,572 | 163 | 4,321 | 3,357 | ||||||||||||||
| Early redemption cost for FHLB advances | 0 | 0 | 0 | 0 | 0 | 0 | 1,777 | ||||||||||||||
| Total Adjustments to Noninterest Expense | 7,780 | 1,555 | 7,796 | 3,824 | 1,443 | 20,955 | 16,648 | ||||||||||||||
| Effective tax rate on adjustments | 3,147 | (673) | (2,786) | (1,480) | (404) | (1,792) | (5,949) | ||||||||||||||
| Effect of change in corporate tax rate | 8,552 | 0 | 0 | 0 | 0 | 8,552 | 0 | ||||||||||||||
| Adjusted Net Income | $ | 17,261 | $ | 15,145 | $ | 12,665 | $ | 10,270 | $ | 11,803 | $ | 55,341 | $ | 39,069 | |||||||
| Earnings per diluted share, as reported | 0.28 | 0.32 | 0.18 | 0.20 | 0.28 | 0.99 | 0.78 | ||||||||||||||
| Adjusted Earnings per Diluted Share | 0.37 | 0.35 | 0.29 | 0.26 | 0.31 | 1.28 | 1.04 | ||||||||||||||
| Average shares outstanding (000) | 46,673 | 43,792 | 43,556 | 39,499 | 38,252 | 43,350 | 37,508 | ||||||||||||||
| Revenue | $ | 74,868 | $ | 57,183 | $ | 54,644 | $ | 48,070 | $ | 47,354 | $ | 234,765 | $ | 177,383 | |||||||
| Total Adjustments to Revenue | (15,265) | 47 | (21) | 0 | (7) | (15,239) | (832) | ||||||||||||||
| Adjusted Revenue | 59,603 | 57,230 | 54,623 | 48,070 | 47,347 | 219,526 | 176,551 | ||||||||||||||
| Noninterest Expense | 39,184 | 34,361 | 41,625 | 34,746 | 30,297 | 149,916 | 130,881 | ||||||||||||||
| Total Adjustments to Noninterest Expense | 7,780 | 1,555 | 7,796 | 3,824 | 1,443 | 20,955 | 16,648 | ||||||||||||||
| Adjusted Noninterest Expense | 31,404 | 32,806 | 33,829 | 30,922 | 28,854 | 128,961 | 114,233 | ||||||||||||||
| Adjusted Noninterest Expense | 31,404 | 32,806 | 33,829 | 30,922 | 28,854 | 128,961 | 114,233 | ||||||||||||||
| Foreclosed property expense and net (gain)/loss on sale | (7) | (298) | 297 | (293) | (78) | (301) | 43 | ||||||||||||||
| Net Adjusted Noninterest Expense | 31,411 | 33,104 | 33,532 | 31,215 | 28,932 | 129,262 | 114,190 | ||||||||||||||
| Adjusted Revenue | 59,603 | 57,230 | 54,623 | 48,070 | 47,347 | 219,526 | 176,551 | ||||||||||||||
| Impact of FTE adjustment | 174 | 154 | 164 | 211 | 204 | 703 | 204 | ||||||||||||||
| Adjusted Revenue on a fully taxable equivalent basis | 59,777 | 57,384 | 54,787 | 48,281 | 47,551 | 220,229 | 176,755 | ||||||||||||||
| Adjusted Efficiency Ratio | 52.6 | % | 57.7 | % | 61.2 | % | 64.7 | % | 60.8 | % | 58.7 | % | 64.6 | % | |||||||
| Average Assets | $ | 5,716,230 | $ | 5,316,119 | $ | 5,082,002 | $ | 4,699,745 | $ | 4,572,188 | $ | 5,206,617 | $ | 4,201,819 | |||||||
| Less average goodwill and intangible assets | (149,432) | (118,364) | (114,563) | (78,878) | (79,620) | (115,511) | (66,608) | ||||||||||||||
| Average Tangible Assets | 5,566,798 | 5,197,755 | 4,967,439 | 4,620,867 | 4,492,568 | 5,091,106 | 4,135,211 | ||||||||||||||
| Return on Average Assets (ROA) | 0.91 | % | 1.06 | % | 0.61 | % | 0.68 | % | 0.94 | % | 0.82 | % | 0.69 | % | |||||||
| Impact of removing average intangible assets and related amortization | 0.06 | 0.06 | 0.05 | 0.06 | 0.06 | 0.06 | 0.05 | ||||||||||||||
| Return on Tangible Average Assets (ROTA) | 0.97 | 1.12 | 0.66 | 0.74 | 1.00 | 0.88 | 0.74 | ||||||||||||||
| Impact of other adjustments for Adjusted Net Income | 0.26 | 0.04 | 0.36 | 0.16 | 0.05 | 0.21 | 0.20 | ||||||||||||||
| Adjusted Return on Average Tangible Assets | 1.23 | 1.16 | 1.02 | 0.90 | 1.05 | 1.09 | 0.94 | ||||||||||||||
| Average Shareholders' Equity | $ | 657,100 | $ | 587,919 | $ | 567,448 | $ | 466,847 | $ | 437,077 | $ | 570,399 | $ | 406,084 | |||||||
| Less average goodwill and intangible assets | (149,432) | (118,364) | (114,563) | (78,878) | (79,620) | (115,511) | (66,608) | ||||||||||||||
| Average Tangible Equity | 507,668 | 469,555 | 452,885 | 387,969 | 357,457 | 454,888 | 339,476 | ||||||||||||||
| Return on Average Shareholders' Equity | 7.9 | % | 9.6 | % | 5.4 | % | 6.9 | % | 9.8 | % | 7.5 | % | 7.2 | % | |||||||
| Impact of removing average intangible assets and related amortization | 2.8 | 2.9 | 1.9 | 1.9 | 2.7 | 2.4 | 1.9 | ||||||||||||||
| Return on Average Tangible Common Equity (ROTCE) | 10.7 | 12.5 | 7.3 | 8.8 | 12.5 | 9.9 | 9.1 | ||||||||||||||
| Impact of other adjustments for Adjusted Net Income | 2.8 | 0.3 | 3.9 | 1.9 | 0.6 | 2.3 | 2.4 | ||||||||||||||
| Adjusted Return on Average Tangible Common Equity | 13.5 | 12.8 | 11.2 | 10.7 | 13.1 | 12.2 | 11.5 | ||||||||||||||
Please visit Seacoast Bank’s website for a PDF version of this press release and information on the 4th Quarter 2017 Earnings Conference Call: http://www.seacoastbanking.com/presentations.aspx?iid=100425