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, today reported record earnings of $3.1 million, or $0.63 per diluted share for the second quarter of 1999, an increase of 32.4 percent from the $2.3 million, or $0.44 per diluted share earned for the second quarter of 1998. Reported return on average assets was 1.14 percent and return on average equity was 15.40 percent for the quarter compared to 0.98 percent and 11.15 percent, respectively, for 1998.

"We are pleased to announce an extremely successful second quarter. Our improved operating results were achieved through continued outstanding growth and a series of profitability initiatives that identified additional revenue and streamlined operating processes," said Dennis S. Hudson, III, President and Chief Executive Officer. "Our SuperCommunity Banking strategy continues to work. We are taking full advantage of the growth that is occurring in our Florida markets, as well opportunities to improve our market penetration following recent mergers and service restructurings that have effected our larger competitors."

The impressive year-over-year earnings performance was aided by strong loan and deposit growth and favorable economic conditions. Average net loans outstanding for the quarter were $737.4 million, an increase of $77.5 million or 11.7 percent over the prior year. Total average deposits grew $82.0 million, or 9.6 percent, to $934.7 million. Average noninterest bearing demand deposits increased $21.2 million, or 17.8 percent over the past year.

Fully taxable net interest income of $11.1 million in the quarter was up $972,000 or 9.6 percent from the second quarter of 1998. Net interest income for the quarter benefited from the recovery of approximately $95,000 in interest paid on a previously charged-off loan. The net interest margin for the quarter totaled 4.38 percent (excluding the impact of the $95,000 recovery), unchanged from the first quarter and down slightly from 4.49 percent earned during the second quarter of 1998.

Total noninterest income increased 12.7 percent during the first six months of 1999 (excluding credit card fee income--the credit card portfolio was sold in September 1998). For the six months ending June 30, 1999, service charges on deposit accounts increased 16.8 percent and trust income increased 14.4 percent compared to the first six months of 1998. Likewise, during the three months ended June 30, 1999, service charges on deposit accounts increased 10.4 percent and trust income increased 8.4 percent when compared to the same quarter for 1998.

Total noninterest expenses for the second quarter were up 2.4 percent compared to the previous year. This modest growth reflects the company's continuing effort to reduce expenses offset by additional incentives earned as a result of the company's improved operating performance. Salaries and benefit expense for the second quarter was up 6.0 percent compared to the prior year and up 6.2 percent compared to the first quarter of 1999. This growth in the current quarter was due to incentive compensation relating to the achievement of certain operating performance thresholds. This resulted in the recognition of approximately $300,000 in additional salary expense over the first quarter of 1999. Provided the company's performance is maintained, additional incentive compensation, totaling approximately $300,000 could be earned during the third quarter of 1999.

Other noninterest expenses for the second quarter declined when compared to the prior year as a direct result of the company's actions to manage overhead expenses.

Net charge-offs for the first six months of 1999 totaled $45,000, a 91.7 percent decrease from the $544,000 charged-off in the same period in 1998. For the current quarter, the company posted a net recovery of $82,000 compared with net charge-offs of $186,000 in the prior year. Nonperforming assets remained stable compared to the first quarter of 1999 at a low 0.35 percent. Nonperforming assets were up slightly from year ago levels of 0.28 percent. Due to the company's exceptional asset quality over the prior two years and the significant recovery of a prior loan charge-off during this quarter, the company reduced its provision for loan losses to zero for the second quarter of 1999 compared to $360,000 for the first quarter of 1999 and $450,000 for the second quarter of 1998. While the company anticipates providing loan loss provisions in the second half of 1999 due to continued growth in the size of the loan portfolio, these amounts could be lower than that posted in the first quarter of 1999 due to continuing improvements in credit quality.

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.