|
|
Today's Date:
Release Date:
|
April 12, 2000
FOR IMMEDIATE RELEASE
|
|
| For more information contact: |
Dennis S. Hudson, III
President &
Chief Executive Officer
Seacoast Banking Corporation
(561) 288-6086
|
| NASDAQ-NMS: |
SBCFA |
William R. Hahl
Executive Vice President/
Chief Financial Officer
(561) 221-2825 |
SEACOAST ANNOUNCES 15% GROWTH IN FIRST QUARTER EARNINGS
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 net income grew 15 percent to $3,107,000 for the first quarter of 2000 compared to $2,711,000 for the first quarter in the previous year. Earnings also improved when compared with $3,041,000 posted in the last quarter of 1999. The company earned $0.64 diluted earnings per share (DEPS) for the quarter, compared to $0.55 DEPS for the first quarter of 1999 and $0.62 DEPS for the preceding quarter.
Return on average assets increased to 1.15 percent in the first quarter of 2000, compared to 1.13 percent for the fourth quarter of 1999 and 1.04 percent in the first quarter of 1999. Return on average equity for the quarter was 14.75 percent compared to 13.92 percent one year ago and 14.56 percent for the preceding quarter.
The higher earnings achieved in the first quarter 2000 resulted from growth in commercial and consumer loans which were funded with maturities from the lower yielding investment securities portfolio, and to a lesser extent, by increased deposits and other borrowed funds. Total average loans outstanding increased $82.2 million, or 11.6 percent over the past twelve months and average earning assets increased $29.9 million or 3.0 percent.
"We believe our success this past quarter can be directly attributed to our markets, our people and our strategy," said Dennis S. Hudson, III, President and Chief Executive Officer of Seacoast. "Our growth in investment management fees this quarter demonstrates the quality of our markets, which are ideal for our style of high-touch banking," said Hudson.
Noninterest income from brokerage commissions and fees combined with trust investment management services total $1.6 million, an increase of $277,000 or 21.4 percent over the first quarter of 1999. The increase is a direct result of the company's talented team of investment professionals working together to provide personalized service to a growing customer base brought about by the company's aggressive expansion and market penetration. The above increase, combined with the growth in deposit and other service charges and fees, produced a 10.1 percent increase in total noninterest income (excluding securities gains) for the first quarter of 2000 when compared to 1999.
Over the past year the Federal Reserve has increased interest rates a total of 100 basis points in an effort to reduce potential future inflation and to avoid a significant economic slowdown. Consistent with these actions, interest bearing deposit growth slowed as customers invested a portion of their deposit balances into higher yielding alternative cash equivalents and investments. Interest bearing core deposits increased $10.2 million or 2.6 percent, while noninterest bearing deposits increased $13.7 million or 9.6 percent. In order to control the impact of higher interest rates on the Company's net interest margin, the rates paid for short term time deposits have been carefully managed over the last year. Time deposits increased $11.4 million or 2.9 percent from year end, but when compared to the first quarter of 1999, average time deposits declined $4.6 million.
The growth in total average deposits and the change in earning asset mix allowed the net interest margin to decline minimally. The company's net interest margin for the first quarter of 2000 was 4.24 percent, compared to 4.23 percent for the preceding quarter, and 14 basis points below the 4.38 percent recorded for the first quarter of 1999. The decline in the company's net interest margin combined with the growth in earning assets produced a $58,000 increase in net interest income (fully taxable equivalent) over the prior year's first quarter.
Noninterest expenses, when compared to the first quarter of 1999, declined $219,000 or 2.4 percent. The decrease was primarily the result of streamlined operational and procedural changes identified and implemented throughout 1999.
Net charge-offs for the first quarter of 2000 totaled $17,000 compared with $127,000 in the first quarter of 1999. Nonperforming assets increased to $3,755,000 compared to $2,568,000 at March 31, 1999. The allowance for loan losses at March 31, 2000 represented 0.87 percent of average loans outstanding compared to 0.91 percent on the same date one year earlier. The company's continued excellent credit quality resulted in a lower provision for loan losses in 2000 of $150,000 compared to $360,000 in the first quarter of 1999.
Seacoast with approximately $1.1 billion in assets is the largest independent commercial 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.
Quarterly Data
| FINANCIAL HIGHLIGHTS |
(Unaudited) |
|
|
|
|
|
|
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
Three Months Ended |
| (Dollars in thousands, |
|
|
|
March 31, |
| except per share data) |
|
|
|
2000 |
|
1999 |
|
| Summary of Earnings |
|
|
|
|
|
|
|
| Net income |
|
|
$ |
3,107 |
$ |
2,711 |
|
| Net interest income (1) |
|
|
|
10,805 |
|
10,747 |
|
| |
|
|
|
|
|
|
|
| Performance Ratios |
|
|
|
|
|
|
|
| Return on average assets (2), (3) |
|
|
|
1.15 |
% |
1.04 |
% |
| Return on average |
|
|
|
|
|
|
|
| shareholders' equity (2), (3) |
|
|
|
14.75 |
|
13.92 |
|
| Net interest margin (1), (2) |
|
|
|
4.24 |
|
4.38 |
|
| |
|
|
|
|
|
|
|
| Per Share Data |
|
|
|
|
|
|
|
| Net income diluted |
|
|
$ |
0.64 |
$ |
0.55 |
|
| Net income basic |
|
|
|
0.64 |
|
0.55 |
|
| Cash dividends declared |
|
|
|
|
|
|
|
| on Class A common |
|
|
|
0.26 |
|
0.24 |
|
| |
|
|
|
|
|
|
|
| |
|
March 31, |
Increase |
|
| |
|
2000 |
|
1999 |
|
(Decrease) |
|
| Credit Analysis |
|
|
|
|
|
|
|
| Net charge-offs year-to-date |
$ |
17 |
$ |
127 |
|
(86.6) |
% |
| Net charge-offs to average loans |
|
0.01 |
% |
0.07 |
% |
(85.7) |
|
| Loan loss provision year-to-date |
$ |
150 |
$ |
360 |
|
(58.3) |
|
| Allowance to loans at end of period |
|
0.87 |
% |
0.91 |
% |
(4.4) |
|
| Nonperforming assets |
$ |
3,755 |
$ |
2,568 |
|
46.2 |
|
| Nonperforming assets to loans |
|
|
|
|
|
|
|
| and other real estate owned |
|
|
|
|
|
|
|
| at end of period |
|
0.46 |
% |
0.35 |
% |
31.4 |
|
| |
|
|
|
|
|
|
|
| Selected Financial Data |
|
|
|
|
|
|
|
| Total assets |
$ |
1,109,998 |
$ |
1,069,448 |
|
3.8 |
|
| Securities, at market |
|
192,501 |
|
254,823 |
|
(24.5) |
|
| Securities, at amortized cost |
|
20,597 |
|
20,756 |
|
(0.8) |
|
| Loans available for sale |
|
959 |
|
4,996 |
|
(80.8) |
|
| Net loans |
|
802,101 |
|
718,023 |
|
11.7 |
|
| Deposits |
|
949,382 |
|
939,405 |
|
1.1 |
|
| Shareholders' equity |
|
78,422 |
|
75,799 |
|
3.5 |
|
| Book value per share |
|
16.30 |
|
15.77 |
|
3.4 |
|
| Tangible book value per share |
|
15.23 |
|
14.51 |
|
5.0 |
|
| Average shareholders' equity |
|
|
|
|
|
|
|
| to average assets |
|
7.82 |
% |
7.50 |
% |
4.3 |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| (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. |
|
|
|
|
|
|
|
Quarterly Data
| CONSOLIDATED QUARTERLY FINANCIAL DATA |
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Quarters |
|
|
|
| |
|
2000 |
1999 |
|
Last 12 |
|
| (Dollars in thousands, except per share data) |
|
First |
Fourth |
Third |
Second |
|
Months |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Operating Ratios |
|
|
|
|
|
|
|
|
|
|
|
| Return on average assets (2),(3),(4) |
|
1.15 |
% |
1.13 |
% |
1.10 |
% |
1.14 |
% |
1.12 |
% |
| Return on average shareholders' equity (2),(3),(4) |
|
14.75 |
|
14.56 |
|
14.40 |
|
15.40 |
|
14.87 |
|
| Net interest margin (1),(2) |
|
4.24 |
|
4.23 |
|
4.33 |
|
4.38 |
|
4.31 |
|
| Average equity to average assets |
|
7.82 |
|
7.75 |
|
7.66 |
|
7.38 |
|
7.66 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Credit Analysis |
|
|
|
|
|
|
|
|
|
|
|
| Net charge-offs (recoveries) |
$ |
17 |
$ |
101 |
$ |
(13) |
$ |
(82) |
$ |
23 |
|
| Net charge-offs to average loans |
|
0.01 |
% |
0.05 |
% |
(0.01) |
% |
(0.04) |
% |
0.00 |
% |
| Loan loss provision |
$ |
150 |
$ |
150 |
$ |
150 |
$ |
- |
$ |
450 |
|
| Allowance to loans at end of period |
|
0.87 |
% |
0.88 |
% |
0.89 |
% |
0.89 |
% |
|
|
| Nonperforming assets |
$ |
3,755 |
$ |
2,746 |
$ |
2,637 |
$ |
2,648 |
|
|
|
| Nonperforming assets to loans and other |
|
|
|
|
|
|
|
|
|
|
|
| real estate owned at end of period |
|
0.46 |
% |
0.35 |
% |
0.35 |
% |
0.35 |
% |
|
|
| Nonaccrual loans and accruing loans 90 days or more |
|
|
|
|
|
|
|
|
|
|
|
| past due to loans outstanding at end of period |
|
0.45 |
|
0.37 |
|
0.31 |
|
0.28 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Per Share Common Stock |
|
|
|
|
|
|
|
|
|
|
|
| Net income diluted |
$ |
0.64 |
$ |
0.62 |
$ |
0.60 |
$ |
0.63 |
$ |
2.49 |
|
| Net income basic |
|
0.64 |
|
0.63 |
|
0.61 |
|
0.64 |
|
2.52 |
|
| Operating net income diluted (4) |
|
0.64 |
|
0.62 |
|
0.60 |
|
0.62 |
|
2.48 |
|
| Cash dividends declared on Class A common |
|
0.26 |
|
0.26 |
|
0.24 |
|
0.24 |
|
1.00 |
|
| Book value per share |
|
16.30 |
|
15.96 |
|
16.01 |
|
15.76 |
|
|
|
| Book value per share, excluding |
|
|
|
|
|
|
|
|
|
|
|
| securities valuation equity (allowance) |
|
17.51 |
|
17.15 |
|
16.81 |
|
16.46 |
|
|
|
| (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 for the entire year. |
|
|
|
|
|
|
|
|
|
|
|
| (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). |
|
|
|
|
|
|
|
|
|
|
|
|
|
