STUART, FL -- Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCFA), a bank holding company whose subsidiary is First National Bank and Trust Company of the Treasure Coast, reported that earnings per share grew 22 percent for the fourth quarter of 1999. The company earned $0.62 diluted earnings per share (DEPS) for the quarter, compared to $0.51 DEPS for the fourth quarter of 1998 and $0.60 DEPS for the preceding quarter. Net income for the fourth quarter totaled $3,041,000 compared to the fourth quarter results for 1998 of $2,543,000. Return on average equity for the quarter was 14.56 percent compared to 12.67 percent one year ago and 14.40 percent for the preceding quarter.

"This past year, the company continued the significant improvement in performance that resulted from past initiatives to increase market penetration in existing and new markets," commented Dennis S. Hudson, III, Chief executive Officer of Seacoast. "In addition, the company also completed a profit enhancement process that improved cost efficiencies, repositioned the duration of its deposit funding to reduce future earnings exposure to higher interest rates, and expanded its banking services offered on the Internet."

Total year 1999 financial highlights were as follows:

1. Return on average assets (ROA) and return on average equity (ROE) were 1.10 percent and 14.57 percent compared to 0.96 percent and 11.39 percent for 1998;
2. Net income for 1999 increased $2.2 million or 23.2 percent to $11.8 million, compared with $9.6 million for the year ended 1998. Diluted earnings per share for the year were $2.40 in 1999, compared with $1.84 in 1998, an increase of 30.4 percent.
3. Ending noninterest bearing deposits increased $13.7 million or 10.8 percent for 1999;
4. Credit quality improved as evidenced by the decline in the net charge-off ratio from 0.11 percent in 1998 to 0.02 percent in 1999. Nonperforming assets at the end of the year totaled $2.7 million or 0.35 percent of loans and other real estate owned;
5. Net interest income increased 7.1 percent and the net interest margin totaled 4.34 percent, a decrease of only six basis points from 4.40 percent in 1998;
6. Total noninterest expenses totaled $36.0 million, less than one percent higher than the $35.7 million for 1998, while outsourced technology expenditures increased by nearly $1 million, better positioning the company for the future;

During 1999, the company’s total loans grew by $76.1 million or 10.9 percent to $771.3 million, while investment securities declined by $47.5 million or 18.2 percent to $213.7 million. This change in earning asset mix supported the net interest margin and allowed for increased net interest income.

Fourth quarter net interest income on a taxable equivalent basis (TEB) totaled $10.7 million, a 1.6 percent increase over 1998. The impact of three increases in the fed funds rate over the last six months of 1999, and maintaining higher liquidity for possible year 2000 contingencies, resulted in higher interest costs and non-earning assets when compared with 1998. The net interest margin declined slightly to 4.23 percent from its fourth quarter 1998 level of 4.26 percent and from 4.33 percent in the third quarter of 1999.

Fourth quarter noninterest income (excluding securities gains and losses) was $3.1 million, a 20.2 percent increase from the previous year. Trust revenues increased by 14.3 percent as a result of an increase in fees charged and expanded trust business. Brokerage commissions and fees during the fourth quarter increased nearly 40 percent over 1998. Brokerage revenue was negatively impacted by the increased volatility in the financial markets experienced in the fourth quarter of 1998. Noninterest expenses decreased 1.2 percent from a year ago.

Average deposits for the fourth quarter of 1999, excluding time deposits, increased $25.3 million or 5.2 percent from fourth quarter of 1998. Total ending deposits increased $22.6 million or 2.6 percent in the fourth quarter of 1999 from the third quarter. Early in 1999, the company believed it was likely that interest rates paid for time deposits would be higher in late 1999 and 2000. During 1999, the company promoted long-term time deposits and $80 million of less than one-year time deposit maturities were extended to over one-year. Some customer balances were not retained and average time deposits in the fourth quarter of 1999 declined $14.2 million compared with 1998, resulting in slower growth in average total deposits which increased $11.0 million or 1.2 percent during 1999. Average noninterest bearing deposits in the fourth quarter increased $17.2 million or 13.8 percent over the past year.

Seacoast, with assets of approximately $1.1 billion, is the largest independent bank headquartered on Florida's Treasure Coast, one of the wealthiest areas in Florida and among the fastest growing in the nation.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Seacoast’s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties.

For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Special Cautionary Notice Regarding Forward-Looking Statements" in the company’s most recent Annual Report on Form 10-K.

1. Calculated on a fully taxable equivalent basis using amortized cost.
1. These ratios are stated on an annualized basis and are not necessarily indicative of future periods.
1. 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.
1. For 1999, before recovery of interest on charged-off loan of $95,000 ($60,000 after tax) for the twelve month period. For 1998, before one-time net(charges)/gains of $330,000 ($209,000 after tax) for the twelve month period.

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 ratios which may be expected 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.
4. For the second quarter 1999, before recovery of interest on charged-off loan of $95,000 ($60,000 after tax).