Net Income Increased 37% Year-Over-Year to $23.3 Million

Improved Operating Leverage and Strong Noninterest Income Highlight Quarterly Results

STUART, Fla., July 25, 2019 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida (“Seacoast” or the "Company”) (NASDAQ: SBCF) today reported second quarter 2019 net income of $23.3 million, or $0.45 per diluted share, up 37% or $6.3 million year-over-year. Seacoast reported second quarter 2019 adjusted net income¹ of $25.8 million, or $0.50 per diluted share, an increase of 41% or $7.6 million compared to the second quarter of 2018.

For the second quarter of 2019, return on average tangible assets was 1.50%, return on average tangible shareholders’ equity was 14.3%, and the efficiency ratio was 53.5%, compared to 1.48%, 14.9% and 56.6%, respectively, in the prior quarter and 1.24%, 13.1%, and 58.4%, respectively, in the second quarter of 2018. Adjusted return on average tangible assets¹ was 1.59%, adjusted return on average tangible shareholders’ equity¹ was 15.2%, and the adjusted efficiency ratio¹ was 51.4%, compared to 1.50%, 15.1%, and 55.8%, respectively, in the prior quarter, and 1.28%, 13.5%, and 57.3%, respectively, in the second quarter of 2018.

Dennis S. Hudson, III, Seacoast’s Chairman and CEO, said, "During the quarter, we achieved record earnings, resulting in a 41% year-over-year increase in adjusted net income¹ and 17% year-over-year growth in tangible book value per share. We continue to build a very high quality balance sheet, fortified with a growing capital base, strong asset quality trends, and a well-managed liquidity position."

Hudson added, "Highlights in the quarter included continued expansion of our business banking team in Tampa and South Florida, strong performance from our mortgage banking group, and completion of our $10 million annual expense reduction initiative, all resulting in an improvement in our adjusted efficiency ratio¹, declining 4% from the prior quarter to 51.4%."

Charles M. Shaffer, Seacoast’s Chief Operating Officer and Chief Financial Officer, said, “Our second quarter 2019 results demonstrate that our focus on strong financial performance, disciplined credit underwriting, and franchise expansion in robust markets continues to create value for shareholders. During the quarter, we continued to drive improved operating leverage while delivering a strictly underwritten credit portfolio that is well diversified in terms of asset mix and granularity. We have built a balance sheet that is supported by an excellent customer franchise, with an average loan to deposit ratio of 87.3%, providing ample room for expansion of loans. We ended the quarter with a tangible common equity ratio of 10.7% and healthy levels of liquidity, both of which should support our ability to deploy capital for continued organic growth and disciplined opportunistic acquisitions."

Second Quarter 2019 Financial Highlights

Income Statement

• Net income was $23.3 million, or $0.45 per diluted share, compared to $22.7 million, or $0.44, for the prior quarter and $17.0 million, or $0.35, for the second quarter of 2018. For the six months ended June 30, 2019, net income was $46.0 million, or $0.88 per diluted share, compared to $35.0 million, or $0.73, for the six months ended June 30, 2018. Adjusted net income¹ was $25.8 million, or $0.50 per diluted share, compared to $24.2 million, or $0.47, for the prior quarter and $18.3 million, or $0.38, for the second quarter of 2018. For the six months ended June 30, 2019, adjusted net income¹ was $50.0 million, or $0.96 per diluted share, compared to $37.6 million, or $0.79, for the six months ended June 30, 2018.
  
  
• Net revenues were $73.7 million, an increase of $0.1 million, compared to the prior quarter, and an increase of $10.8 million, or 17%, compared to the second quarter of 2018. For the six months ended June 30, 2019, net revenues were $147.3 million, an increase of $22.3 million, or 18%, compared to the six months ended June 30, 2018. Adjusted revenues¹ were $74.2 million, an increase of $0.6 million, or 1%, from the prior quarter and an increase of $11.2 million, or 18%, from the second quarter of 2018. For the six months ended June 30, 2019, adjusted revenues¹ were $147.8 million, an increase of $22.7 million, or 18%, compared to the six months ended June 30, 2018.
  
  
• Net interest income totaled $60.1 million, a decrease of $0.6 million, or 1%, from the prior quarter and an increase of $9.9 million, or 20%, from the second quarter of 2018. For the six months ended June 30, 2019, net interest income was $120.9 million, an increase of $20.9 million, or 21%, compared to the six months ended June 30, 2018.
  
  
• Net interest margin was 3.94% in the second quarter of 2019, 4.02% in the first quarter of 2019 and 3.77% in the second quarter of 2018. Quarter-over-quarter, the yield on loans contracted 6 basis points, the yield on securities contracted 2 basis points, and the cost of deposits increased 9 basis points. The impact on net interest margin from accretion of purchase discounts on acquired loans was 27 basis points in the second quarter of 2019, compared to 26 basis points in the prior quarter and 17 basis points in the second quarter of 2018. During the quarter, the yield curve declined across all points on the curve, affecting variable rate loans and securities, and reducing add-on rates for new loans originated. Of note, late in the quarter, deposit rate pressure began to abate.
  
  
• Noninterest income totaled $13.6 million, an increase of $0.7 million, or 6%, compared to the prior quarter and an increase of $0.9 million, or 7%, from the second quarter of 2018. For the six months ended June 30, 2019, noninterest income was $26.4 million, an increase of $1.4 million, or 6%, compared to the six months ended June 30, 2018. Sequentially, noninterest income increased across nearly every category. Highlights include an increase of $0.6 million in mortgage banking fees, reflecting increasing success in generating saleable mortgage volume, a $0.2 million increase in wealth-related fees attributed to continued growth in assets under management, a $0.2 million increase in service charges on deposits, in part the result of increased revenue from treasury products, and a $0.2 million increase in other income, primarily attributed to higher swap fees. During the quarter, $38.2 million of securities were sold with an average yield of 1.85%, resulting in a loss of $0.6 million. These funds were reinvested at an average yield of 2.90%.
  
  
• The provision for loan losses was $2.6 million compared to $1.4 million in the prior quarter and $2.5 million in the second quarter of 2018.
  
  
• Noninterest expense was $41.0 million, a decrease of $2.1 million, or 5%, compared to the prior quarter and an increase of $2.8 million, or 7%, from the second quarter of 2018. For the six months ended June 30, 2019, noninterest expense was $84.1 million, an increase of $8.7 million, or 12%, compared to the six months ended June 30, 2018. Sequentially, changes from the first quarter of 2019 in noninterest expense consisted of the following:
  
  º Salaries and wages increased by $0.9 million, attributed to $1.1 million in severance costs associated with the reduction of 50 full time equivalent employees as previously announced. The full benefit of the reduction in force should be realized in the third quarter.
  
  º Employee benefits decreased $1.0 million attributed to the reduction in full time equivalent employees, lower seasonal payroll taxes and 401(k) plan contributions, and lower health insurance claims when compared to the first quarter of 2019.
  
  º Legal and professional fees decreased by $0.8 million primarily due to higher expenses incurred in the first quarter of 2019 on projects in risk management and lending operations, leading to the successful launch of our commercial digital origination platform.
  
  º Our continued focus on efficiency and streamlining operations resulted in decreases across several categories, most notably a decrease of $0.8 million in other expenses and $0.2 million in furniture and equipment.
  
  º During the quarter, we closed one banking center location, resulting in a $0.3 million one-time expense which is included in occupancy expense. We will close an additional banking center location in the third quarter.
  
  
• Seacoast recorded $6.9 million in income tax expense in the second quarter of 2019, compared to $6.4 million in the prior quarter and $5.2 million in the second quarter of 2018. Tax benefits related to stock-based compensation were $0.1 million in the second quarter compared to $0.6 million in the prior quarter, during which a significant amount of previously granted awards vested. The quarter-over-quarter change unfavorably impacted earnings per share by one cent.
  
  
• Year to date adjusted revenues¹ increased 18% compared to prior year while adjusted noninterest expense¹ increased 10%, generating 8% operating leverage.
  
  
• The efficiency ratio was 53.5% compared to 56.6% in the prior quarter and 58.4% in the second quarter of 2018. The adjusted efficiency ratio¹ was 51.4% compared to 55.8% in the prior quarter and 57.3% in the second quarter of 2018. The reduction in both ratios was the outcome of our continued focus on streamlining operations, in combination with driving top-line revenue improvements.

Balance Sheet

• At June 30, 2019, the Company had total assets of $6.8 billion and total shareholders' equity of $930.2 million.  Book value per share was $18.08 and tangible book value per share was $13.65, compared to $17.44 and $12.98, respectively, at March 31, 2019 and $15.18 and $11.67, respectively, at June 30, 2018. Year-over-year, tangible book value per share increased 17%.
  
  
• Debt securities totaled $1.2 billion at June 30, 2019, an increase of $28.9 million compared to the prior quarter and a decrease of $135.1 million from June 30, 2018. During the quarter, $38.2 million of securities were sold, with an average yield of 1.85%, resulting in a loss of $0.6 million. Purchases of securities during the quarter totaled $87.4 million at an average yield of 2.90%.
  
  
• Loans totaled $4.9 billion at June 30, 2019, an increase of $59.7 million, or 1.2%, compared to the prior quarter, and an increase of $914.1 million, or 23%, from June 30, 2018.
  
  
• New loan originations of $407 million, compared to $310 million in the prior quarter, resulted in net loan growth in the quarter of 5% on an annualized basis, overcoming a $59 million increase in early loan payoffs when compared to the prior quarter. During the second quarter, we saw acceleration in commercial real estate loans being refinanced away with minimal or no covenants, limited or no guarantees, in combination with increasing leverage in projects. Additionally, we allowed a few higher risk loans to be refinanced away in categories such as marinas, hotels, and speculative construction. We remain patient and committed to our strict underwriting principles.
  
  
• Consumer and small business originations for the second quarter of 2019 were a record $136.5 million, an increase of 15% compared to the first quarter of 2019 and an increase of 30% compared to the second quarter of 2018.
  
  
• Commercial originations during the second quarter of 2019 were $157.0 million, an increase of 44% compared to the first quarter of 2019 and an increase of 12% compared to the second of quarter 2018.
  
  
• Closed residential loans retained in the portfolio for the second quarter of 2019 were $51.8 million, up 4% from the first quarter of 2019 and down 31% from the second quarter of 2018. The decrease from prior year is consistent with the mortgage banking team's shift towards generating saleable volume and away from residential construction lending.
  
  
• We continue to manage the Company's exposure to commercial real estate. Construction and land development and commercial real estate loans remain well below regulatory guidance at 51% and 205% of total bank-level risk based capital, respectively, down from 57% and 216%, respectively, in the first quarter of 2019. On a consolidated basis, inclusive of capital at the holding company, construction and land development and commercial real estate loans represent 48% and 192%, respectively, of total consolidated risk based capital.
  
  
• Concentrations continue to be well managed with an average commercial loan size of approximately $350,000. The top 10 and top 20 relationships represented 19% and 34%, respectively, of total consolidated risk based capital, down from 25% and 42% compared to second quarter of 2018 and down from 29% and 48% compared to second quarter of 2016. Our largest committed exposure totals $29 million.
  
  
• Pipelines (loans in underwriting and approval or approved and not yet closed) remained strong, totaling $377.6 million as of June 30, 2019.
  
  
• Consumer and small business pipelines were $65.5 million, a decrease of 3% sequentially and an increase of 24% compared to the prior year.
  
  
• Commercial pipelines were $261.6 million, an increase of 48% sequentially and 34% compared to the prior year.
  
  
• Residential pipelines were $50.5 million, an increase of 11% sequentially and a decrease of 21% compared to the prior year, consistent with a shift in focus to generating saleable volume, which at June 30, 2019 represents 90% of the residential pipeline.
  
  
• Total deposits were $5.5 billion as of June 30, 2019, a decrease of $64.4 million, or 1.1%, sequentially and an increase of $843.8 million, or 18%, from the prior year.
  
  
• Total deposits grew 3% on an annualized basis quarter-over-quarter, excluding the impact of a $99 million reduction in brokered time deposits. The decrease in brokered time deposits was the result of a shift towards lower rate Federal Home Loan Bank advances in the second quarter.
  
  
• During the second quarter, we accelerated the velocity of our commercial customer acquisition, with business checking balances growing 8% on an annualized basis overcoming seasonal pressure, the result of expansion of our business banking franchise in the Tampa and Fort Lauderdale markets.
  
  
• Interest-bearing deposits (interest-bearing demand, savings and money market deposits) increased year-over-year $373.0 million, or 15%, to $2.8 billion, noninterest bearing demand deposits increased $206.2 million, or 14%, to $1.7 billion, and CDs increased $264.6 million, or 34%, to $1.1 billion.
  
  
• Overall cost of deposits increased to 76 basis points. Of note, late in the quarter, deposit rate pressure began to abate.
  
  
• Second quarter return on average tangible assets (ROTA) was 1.50%, compared to 1.48% in the prior quarter and 1.24% in the second quarter of 2018. Adjusted ROTA1 was 1.59% compared to 1.50% in the prior quarter and 1.28% in the second quarter of 2018.

Capital

• Second quarter return on average tangible common equity (ROTCE) was 14.3%, compared to 14.9% in the prior quarter and 13.1% in the second quarter of 2018. Adjusted ROTCE1 was 15.2% compared to 15.1% in the prior quarter and 13.5% in the second quarter of 2018.
  
  
• The tier 1 capital ratio was 14.6%, total capital ratio was 15.2% and the tier 1 leverage ratio was 11.7% at June 30, 2019.
  
  
• Tangible common equity to tangible assets was 10.7% at June 30, 2019, compared to 10.2% at March 31, 2019 and 9.6% at June 30, 2018.

Asset Quality

• Nonperforming loans to total loans outstanding was 0.47% at June 30, 2019, 0.46% at March 31, 2019, and 0.66% at June 30, 2018.
  
  
• Nonperforming assets to total assets was 0.50% at June 30, 2019, 0.51% at March 31, 2019 and 0.58% at June 30, 2018. Nonperforming assets decreased by $0.5 million to $33.8 million in the second quarter of 2019.
  
  
• The ratio of allowance for loan losses to total loans was 0.69% at June 30, 2019, 0.68% at March 31, 2019, and 0.73% at June 30, 2018. The ratio of allowance for loan losses to non-acquired loans was 0.87% at June 30, 2019, 0.89% at March 31, 2019, and 0.88% at June 30, 2018.
  
  
• Net charge-offs were $1.8 million or 0.15% of average loans for the second quarter of 2019 compared to $1.0 million, or 0.08% of average loans in the prior quarter.

FINANCIAL HIGHLIGHTS								(Unaudited)
(Amounts in thousands except per share data)
	Quarterly Trends
	2Q'19				1Q'19				4Q'18				3Q'18				2Q'18
Selected Balance Sheet Data:
Total Assets	$	6,824,886			$	6,783,389			$	6,747,659			$	5,930,934			$	5,922,681
Gross Loans	4,888,139				4,828,441				4,825,214				4,059,323				3,974,016
Total Deposits	5,541,209				5,605,578				5,177,240				4,643,510				4,697,440
Performance Measures:
Net Income	$	23,253			$	22,705			$	15,962			$	16,322			$	16,964
Net Interest Margin	3.94		%		4.02		%		4.00		%		3.82		%		3.77		%
Average Diluted Shares Outstanding	51,952				52,039				51,237				48,029				47,974
Diluted Earnings Per Share (EPS)	$	0.45			$	0.44			$	0.31			$	0.34			$	0.35
Return on (annualized):
Average Assets (ROA)	1.38		%		1.36		%		0.96		%		1.10		%		1.16		%
Average Tangible Assets (ROTA)	1.50				1.48				1.05				1.18				1.24
Average Tangible Common Equity (ROTCE)	14.30				14.86				10.94				12.04				13.08
Efficiency Ratio	53.48				56.55				65.76				57.04				58.41
Adjusted Operating Measures1:
Adjusted Net Income	$	25,818			$	24,205			$	23,893			$	17,626			$	18,268
Adjusted Diluted EPS	0.50				0.47				0.47				0.37				0.38
Adjusted ROTA	1.59		%		1.50		%		1.49		%		1.22		%		1.28		%
Adjusted ROTCE	15.17				15.11				15.44				12.43				13.49
Adjusted Efficiency Ratio	51.44				55.81				54.19				56.29				57.31
Adjusted Noninterest Expenses as a
Percent of Average Tangible Assets	2.34				2.55				2.46				2.48				2.57
Other Data:
Market capitalization2	$	1,309,158			$	1,354,759			$	1,336,415			$	1,380,275			$	1,489,411
Full-time equivalent employees	852				902				902				835				826
Number of ATMs	81				84				87				86				87
Full service banking offices	49				50				51				49				49
Registered online users	104,017				102,274				99,415				94,400				92,107
Registered mobile devices	92,281				87,844				83,151				73,300				69,038
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP
2Common shares outstanding multiplied by closing bid price on last day of each period

Vision 2020

We remain confident in our ability to achieve our Vision 2020 targets announced in 2017.

	Vision 2020 Targets
Return on Tangible Assets	1.30% +
Return on Tangible Common Equity	16% +
Efficiency Ratio	Below 50%

Second Quarter Operating Highlights

Modernizing How We Sell

• After a successful pilot program early this year, we launched marketing efforts in the second quarter highlighting automated fulfillment for small business loan products. While currently limited to a select group of products, the platform offers digitized onboarding and should significantly reduce the cost to originate small business loans to current customers, while maintaining our strict underwriting principles.

Lowering Our Cost to Serve

• We consolidated one banking center location in the second quarter of 2019 with an eight month payback period and one-time expense of $0.3 million. We have one remaining consolidation planned for the third quarter of 2019.
  
  
• We’ve now achieved our Vision 2020 objective of reducing our footprint by 20% to meet the evolving needs of our customers. We were able to achieve this objective ahead of plan due to successful M&A and the repositioning of our banking center network in strategic growth markets.
  
  
• At quarter end, average deposits per banking center exceeded $113 million, up from $96 million during the same period last year.
  
  
• During the quarter, we completed our previously announced $10 million annual expense reduction initiative, which included reducing the full time equivalent employee count by 50, renegotiating key vendor contracts, and reducing expenses across a number of line items.

Driving Improvements in How Our Business Operates

• Late last year we launched a large-scale initiative to implement a fully digital loan origination platform across all business banking units. In the second quarter, the implementation and launch were completed. This follows the successful rollout of our fully digital mortgage banking origination platform. This investment should lead to significant improvement in operational efficiency and banker productivity in 2020 and beyond.

Scaling and Evolving Our Culture

• We continue to invest in business bankers. In the second quarter we on-boarded 5 new bankers, 15 year to date, in order to fully support the strong markets we serve. We have a robust pipeline of talent as we enter the third quarter of 2019 and will continue to opportunistically add top-tier bankers in the Tampa and Fort Lauderdale markets.

OTHER INFORMATION

Conference Call Information
Seacoast will host a conference call on July 26, 2019 at 10:00 a.m. (Eastern Time) to discuss the second quarter 2019 earnings results and business trends. Investors may call in (toll-free) by dialing (888) 517-2513 (passcode: 8644 001; host: Dennis S. Hudson). Charts will be used during the conference call and may be accessed at Seacoast's website at www.SeacoastBanking.com by selecting "Presentations" under the heading "News/Events" A replay of the call will be available for one month, beginning late afternoon of July 26, 2019 by dialing (888) 843-7419 (domestic) and using passcode: 8644 001#.

Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast's website at www.SeacoastBanking.com. The link is located in the subsection "Presentations" under the heading "Investor Services." Beginning the afternoon of July 26, 2019, 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 $6.8 billion in assets and $5.5 billion in deposits as of June 30, 2019. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, and 49 traditional branches of its locally-branded, wholly-owned subsidiary bank, Seacoast Bank. Offices stretch from Fort 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 www.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, assumptions, estimates and intentions about future performance 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.

All statements other than statements of historical fact could be 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", "plan", "point to", "project", "could", "intend", "target" 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, including interest rate policies of the Board of Governors of the Federal Reserve, 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; uncertainty related to the impact of LIBOR calculations on securities and loans; changes in borrower credit risks and payment behaviors; changes in the availability and cost of credit and capital in the financial markets; changes in the prices, values and sales volumes of residential and commercial real estate; our ability to comply with any regulatory requirements; the effects of problems encountered by other financial institutions that adversely affect us or the banking industry; our concentration in commercial real estate loans; the failure of assumptions and estimates, as well as differences in, and changes to, economic, market and credit conditions; the impact on the valuation of our investments due to market volatility or counterparty payment risk; statutory and regulatory dividend restrictions; increases in regulatory capital requirements for banking organizations generally; the risks of mergers, acquisitions and divestitures, including our ability to continue to identify acquisition targets and successfully acquire desirable financial institutions; changes in technology or products that may be more difficult, costly, or less effective than anticipated; our ability to identify and address increased cybersecurity risks; inability of our risk management framework to manage risks associated with our business; dependence on key suppliers or vendors to obtain equipment or services for our business on acceptable terms; reduction in or the termination of our ability to use the mobile-based platform that is critical to our business growth strategy; the effects of war or other conflicts, acts of terrorism, natural disasters or other catastrophic events that may affect general economic conditions; unexpected outcomes of, and the costs associated with, existing or new litigation involving us; our ability to maintain adequate internal controls over financial reporting; potential claims, damages, penalties, fines and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions; the risks that our deferred tax assets could be reduced if estimates of future taxable income from our operations and tax planning strategies are less than currently estimated and sales of our capital stock could trigger a reduction in the amount of net operating loss carryforwards that we may be able to utilize for income tax purposes; 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.

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, 2018, 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 www.sec.gov.

 

FINANCIAL HIGHLIGHTS	(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	Quarterly Trends																				Six  Months Ended
(Amounts in thousands, except ratios and per share data)	2Q'19				1Q'19				4Q'18				3Q'18				2Q'18				2Q'19				2Q'18
Summary of Earnings
Net income	$	23,253			$	22,705			$	15,962			$	16,322			$	16,964			45,958				34,991
Adjusted net income1	25,818				24,205				23,893				17,626				18,268				50,023				37,566
Net interest income2	60,219				60,861				60,100				51,709				50,294				121,080				100,147
Net interest margin2,3	3.94		%		4.02		%		4.00		%		3.82		%		3.77		%		3.98		%		3.78		%
Performance Ratios
Return on average assets-GAAP basis3	1.38		%		1.36		%		0.96		%		1.10		%		1.16		%		1.37		%		1.20		%
Return on average tangible assets-GAAP basis3,4	1.50				1.48				1.05				1.18				1.24				1.49				1.29
Adjusted return on average tangible assets1,3,4	1.59				1.50				1.49				1.22				1.28				1.55				1.33
Return on average shareholders' equity-GAAP basis3	10.23				10.47				7.65				8.89				9.59				10.35				10.04
Return on average tangible common equity-GAAP basis3,4	14.30				14.86				10.94				12.04				13.08				14.57				13.73
Adjusted return on average tangible common equity1,3,4	15.17				15.11				15.44				12.43				13.49				15.14				14.14
Efficiency ratio5	53.48				56.55				65.76				57.04				58.41				55.01				58.11
Adjusted efficiency ratio1	51.44				55.81				54.19				56.29				57.31				53.62				57.18
Noninterest income to total revenue (excluding securities losses)	18.93				17.45				17.97				19.31				20.28				18.19				20.11
Tangible common equity to tangible assets4	10.65				10.18				9.72				9.85				9.56				10.65				9.56
Average loan-to-deposit ratio	87.27				90.55				89.14				86.25				83.51				88.87				83.80
End of period loan-to-deposit ratio	88.53				86.38				93.43				87.77				84.91				88.53				84.91
Per Share Data
Net income diluted-GAAP basis	$	0.45			$	0.44			$	0.31			$	0.34			$	0.35			$	0.88			$	0.73
Net income basic-GAAP basis	0.45				0.44				0.32				0.35				0.36				0.89				0.74
Adjusted earnings1	0.50				0.47				0.47				0.37				0.38				0.96				0.79
Book value per share common	18.08				17.44				16.83				15.50				15.18				18.08				15.18
Tangible book value per share	13.65				12.98				12.33				12.01				11.67				13.65				11.67
Cash dividends declared	—				—				—				—				—				—				—
1Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP.
2Calculated on a fully taxable equivalent basis using amortized cost.
3These ratios are stated on an annualized basis and are not necessarily indicative of future periods.
4The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.
5Defined as noninterest expense less amortization of intangibles and 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).

CONDENSED CONSOLIDATED STATEMENTS OF INCOME					(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	Quarterly Trends																				Six  Months Ended
(Amounts in thousands, except per share data)	2Q'19				1Q'19				4Q'18				3Q'18				2Q'18				2Q'19				2Q'18
Interest on securities:
Taxable	$	8,933			$	9,119			$	9,528			$	9,582			$	9,389			$	18,052			$	18,750
Nontaxable	143				151				200				225				216				294				459
Interest and fees on loans	62,288				62,287				59,495				48,713				46,519				124,575				91,776
Interest on federal funds sold and other investments	873				918				835				634				585				1,791				1,201
Total Interest Income	72,237				72,475				70,058				59,154				56,709				144,712				112,186
Interest on deposits	4,825				3,873				3,140				2,097				1,988				8,698				3,526
Interest on time certificates	5,724				4,959				3,901				2,975				2,629				10,683				4,808
Interest on borrowed money	1,552				2,869				3,033				2,520				1,885				4,421				3,883
Total Interest Expense	12,101				11,701				10,074				7,592				6,502				23,802				12,217
Net Interest Income	60,136				60,774				59,984				51,562				50,207				120,910				99,969
Provision for loan losses	2,551				1,397				2,342				5,774				2,529				3,948				3,614
Net Interest Income After Provision for Loan Losses	57,585				59,377				57,642				45,788				47,678				116,962				96,355
Noninterest income:
Service charges on deposit accounts	2,894				2,697				3,019				2,833				2,674				5,591				5,346
Trust fees	1,147				1,017				1,040				1,083				1,039				2,164				2,060
Mortgage banking fees	1,734				1,115				809				1,135				1,336				2,849				2,738
Brokerage commissions and fees	541				436				468				444				461				977				820
Marine finance fees	201				362				185				194				446				563				1,019
Interchange income	3,405				3,401				3,198				3,119				3,076				6,806				6,018
BOLI income	927				915				1,091				1,078				1,066				1,842				2,122
SBA gains	691				636				519				473				748				1,327				1,482
Other	2,503				2,266				2,810				1,980				1,923				4,769				3,562
	14,043				12,845				13,139				12,339				12,769				26,888				25,167
Securities losses, net	(466		)		(9		)		(425		)		(48		)		(48		)		(475		)		(150		)
Total Noninterest Income	13,577				12,836				12,714				12,291				12,721				26,413				25,017
Noninterest expenses:
Salaries and wages	19,420				18,506				22,172				17,129				16,429				37,926				31,810
Employee benefits	3,195				4,206				3,625				3,205				3,034				7,401				6,115
Outsourced data processing costs	3,876				3,845				5,809				3,493				3,393				7,721				7,072
Telephone / data lines	893				811				602				624				643				1,704				1,255
Occupancy	3,741				3,807				3,747				3,214				3,316				7,548				6,433
Furniture and equipment	1,544				1,757				2,452				1,367				1,468				3,301				2,925
Marketing	1,211				1,132				1,350				1,139				1,344				2,343				2,596
Legal and professional fees	2,033				2,847				3,668				2,019				2,301				4,880				4,274
FDIC assessments	337				488				571				431				595				825				1,193
Amortization of intangibles	1,456				1,458				1,303				1,004				1,004				2,914				1,993
Foreclosed property expense and net (gain)/loss on sale	(174		)		(40		)		—				(136		)		405				(214		)		597
Other	3,468				4,282				4,165				3,910				4,314				7,750				9,147
Total Noninterest Expense	41,000				43,099				49,464				37,399				38,246				84,099				75,410
Income Before Income Taxes	30,162				29,114				20,892				20,680				22,153				59,276				45,962
Income taxes	6,909				6,409				4,930				4,358				5,189				13,318				10,971
Net Income	$	23,253			$	22,705			$	15,962			$	16,322			$	16,964			$	45,958			$	34,991
Per share of common stock:
Net income diluted	$	0.45			$	0.44			$	0.31			$	0.34			$	0.35			$	0.88			$	0.73
Net income basic	0.45				0.44				0.32				0.35				0.36				0.89				0.74
Cash dividends declared	—				—				—				—				—				—				—
Average diluted shares outstanding	51,952				52,039				51,237				48,029				47,974				51,998				47,828
Average basic shares outstanding	51,446				51,359				50,523				47,205				47,165				51,403				47,059

CONDENSED CONSOLIDATED BALANCE SHEETS						(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
		June 30,				March 31,				December 31,				September 30,				June 30,
(Amounts in thousands)		2019				2019				2018				2018				2018
Assets
Cash and due from banks		$	97,792			$	98,270			$	92,242			$	101,920			$	123,927
Interest bearing deposits with other banks		61,987				105,741				23,709				3,174				7,594
Total Cash and Cash Equivalents		159,779				204,011				115,951				105,094				131,521
Time deposits with other banks		4,980				8,174				8,243				9,813				10,562
Debt Securities:
Available for sale (at fair value)		914,615				877,549				865,831				923,206				954,906
Held to maturity (at amortized cost)		287,302				295,485				357,949				367,387				382,137
Total Debt Securities		1,201,917				1,173,034				1,223,780				1,290,593				1,337,043
Loans held for sale		17,513				13,900				11,873				16,172				14,707
Loans		4,888,139				4,828,441				4,825,214				4,059,323				3,974,016
Less: Allowance for loan losses		(33,505		)		(32,822		)		(32,423		)		(33,865		)		(28,924		)
Net Loans		4,854,634				4,795,619				4,792,791				4,025,458				3,945,092
Bank premises and equipment, net		68,738				70,412				71,024				63,531				63,991
Other real estate owned		11,043				11,921				12,802				4,715				8,417
Goodwill		205,260				205,260				204,753				148,555				148,555
Other intangible assets, net		22,672				23,959				25,977				16,508				17,319
Bank owned life insurance		125,233				124,306				123,394				122,561				121,602
Net deferred tax assets		19,353				24,647				28,954				25,822				26,021
Other assets		133,764				128,146				128,117				102,112				97,851
Total Assets		$	6,824,886			$	6,783,389			$	6,747,659			$	5,930,934			$	5,922,681
Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest demand		$	1,669,804			$	1,676,009			$	1,569,602			$	1,488,689			$	1,463,652
Interest-bearing demand		1,124,519				1,100,477				1,014,032				912,891				976,281
Savings		519,732				508,320				493,807				451,958				444,736
Money market		1,172,971				1,192,070				1,173,950				1,036,940				1,023,170
Other time certificates		553,107				539,202				513,312				411,208				413,643
Brokered time certificates		268,998				367,841				220,594				192,182				228,602
Time certificates of more than $250,000		232,078				221,659				191,943				149,642				147,356
Total Deposits		5,541,209				5,605,578				5,177,240				4,643,510				4,697,440
Securities sold under agreements to repurchase		82,015				148,005				214,323				189,035				200,050
Federal Home Loan Bank borrowings		140,000				3,000				380,000				261,000				205,000
Subordinated debt		70,944				70,874				70,804				70,734				70,664
Other liabilities		60,479				59,508				41,025				33,824				33,364
Total Liabilities		5,894,647				5,886,965				5,883,392				5,198,103				5,206,518
Shareholders' Equity
Common stock		5,146				5,141				5,136				4,727				4,716
Additional paid in capital		782,928				780,680				778,501				668,711				665,885
Retained earnings		143,032				119,779				97,074				81,112				64,790
Treasury stock		(6,137		)		(4,959		)		(3,384		)		(2,854		)		(2,884		)
		924,969				900,641				877,327				751,696				732,507
Accumulated other comprehensive income/(loss), net		5,270				(4,217		)		(13,060		)		(18,865		)		(16,344		)
Total Shareholders' Equity		930,239				896,424				864,267				732,831				716,163
Total Liabilities & Shareholders' Equity		$	6,824,886			$	6,783,389			$	6,747,659			$	5,930,934			$	5,922,681
Common shares outstanding		51,461				51,414				51,361				47,270				47,163

CONSOLIDATED QUARTERLY FINANCIAL DATA	(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
(Amounts in thousands)	2Q'19				1Q'19				4Q'18				3Q'18				2Q'18
Credit Analysis
Net charge-offs (recoveries) - non-acquired loans	$	1,621			$	762			$	3,693			$	800			$	1,715
Net charge-offs (recoveries) - acquired loans	220				201				56				(3		)		(25		)
Total Net Charge-offs (Recoveries)	1,841				963				3,749				797				1,690
TDR valuation adjustments	$	27			$	35			$	35			$	36			$	33
Net charge-offs (recoveries) to average loans - non-acquired loans	0.13		%		0.06		%		0.32		%		0.08		%		0.17		%
Net charge-offs (recoveries) to average loans - acquired loans	0.02				0.02				—				—				—
Total Net Charge-offs (Recoveries) to Average Loans	0.15				0.08				0.32				0.08				0.17
Provision for loan losses - non-acquired loans	$	2,326			$	1,709			$	2,343			$	5,640			$	2,591
Provision for (recapture of) loan losses - acquired loans	225				(312		)		(1		)		134				(62		)
Total Provision for Loan Losses	$	2,551			$	1,397			$	2,342			$	5,774			$	2,529
Allowance for loan losses - non-acquired loans	$	33,393			$	32,715			$	31,803			$	33,188			$	28,384
Allowance for loan losses - acquired loans	112				107				620				677				540
Total Allowance for Loan Losses	$	33,505			$	32,822			$	32,423			$	33,865			$	28,924
Non-acquired loans at end of period	$	3,817,358			$	3,667,221			$	3,588,251			$	3,383,571			$	3,221,569
Purchased noncredit impaired loans at end of period	1,057,200				1,147,432				1,222,529				662,701				739,232
Purchased credit impaired loans at end of period	13,581				13,788				14,434				13,051				13,215
Total Loans	$	4,888,139			$	4,828,441			$	4,825,214			$	4,059,323			$	3,974,016
Non-acquired loans allowance for loan losses to non-acquired loans at end of period	0.87		%		0.89		%		0.89		%		0.98		%		0.88		%
Total allowance for loan losses to total loans at end of period	0.69				0.68				0.67				0.83				0.73
Purchase discount on acquired loans at end of period	3.76				3.80				3.86				2.25				2.31
End of Period
Nonperforming loans - non-acquired	$	15,810			$	15,423			$	15,783			$	18,998			$	19,578
Nonperforming loans - acquired	6,986				6,990				10,693				7,142				6,624
Other real estate owned - non-acquired	66				831				386				418				354
Other real estate owned - acquired	1,612				1,725				3,020				1,203				4,969
Bank branches closed included in other real estate owned	9,365				9,365				9,396				3,094				3,094
Total Nonperforming Assets	$	33,839			$	34,334			$	39,278			$	30,855			$	34,619
Restructured loans (accruing)	$	14,534			$	14,857			$	13,346			$	13,797			$	14,241
Nonperforming loans to loans at end of period - non-acquired	0.41		%		0.42		%		0.44		%		0.56		%		0.61		%
Nonperforming loans to loans at end of period - acquired	0.65				0.60				0.86				1.06				0.88
Total Nonperforming Loans to Loans at End of Period	0.47				0.46				0.55				0.64				0.66
Nonperforming assets to total assets - non-acquired	0.37		%		0.38		%		0.38		%		0.38		%		0.39		%
Nonperforming assets to total assets - acquired	0.13				0.13				0.20				0.14				0.19
Total Nonperforming Assets to Total Assets	0.50				0.51				0.58				0.52				0.58
	June 30,				March 31,				December 31,				September 30,				June 30,
Loans	2019				2019				2018				2018				2018
Construction and land development	$	379,991			$	417,565			$	443,568			$	376,257			$	359,070
Commercial real estate - owner occupied	1,005,876				989,234				970,181				829,368				812,306
Commercial real estate - non-owner occupied	1,184,409				1,173,183				1,161,885				897,331				888,989
Residential real estate	1,400,184				1,329,166				1,324,377				1,152,640				1,103,946
Consumer	215,932				206,414				202,881				192,772				190,835
Commercial and financial	701,747				712,879				722,322				610,955				618,870
Total Loans	$	4,888,139			$	4,828,441			$	4,825,214			$	4,059,323			$	3,974,016

AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1																(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	2Q'19											1Q'19											2Q'18
	Average								Yield/			Average								Yield/			Average								Yield/
(Amounts in thousands)	Balance				Interest				Rate			Balance				Interest				Rate			Balance				Interest				Rate
Assets
Earning assets:
Securities:
Taxable	$	1,169,891			$	8,933			3.05	%		$	1,186,374			$	9,119			3.07	%		$	1,324,280			$	9,389			2.84	%
Nontaxable	24,110				179				2.96			26,561				190				2.86			32,055				273				3.41
Total Securities	1,194,001				9,112				3.05			1,212,935				9,309				3.07			1,356,335				9,662				2.85
Federal funds sold and other
investments	91,481				873				3.83			91,136				918				4.09			49,387				585				4.75
Loans, net	4,841,751				62,335				5.16			4,839,046				62,335				5.22			3,948,460				46,549				4.73
Total Earning Assets	6,127,233				72,320				4.73			6,143,117				72,562				4.79			5,354,182				56,796				4.25
Allowance for loan losses	(32,806		)									(32,966		)									(29,234		)
Cash and due from banks	91,160											99,940											110,549
Premises and equipment	69,890											70,938											64,445
Intangible assets	228,706											230,066											166,393
Bank owned life insurance	124,631											123,708											121,008
Other assets	126,180											136,175											90,692
Total Assets	$	6,734,994										$	6,770,978										$	5,878,035
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand	$	1,118,703			$	1,150			0.41	%		$	1,029,726			$	839			0.33	%		$	996,929			$	492			0.20	%
Savings	513,773				586				0.46			500,347				477				0.39			439,691				118				0.11
Money market	1,179,345				3,089				1.05			1,158,939				2,557				0.89			1,027,705				1,378				0.54
Time deposits	1,089,020				5,724				2.11			1,042,346				4,959				1.93			790,404				2,629				1.33
Federal funds purchased and securities
sold under agreements to repurchase	91,614				355				1.55			185,032				550				1.21			179,540				334				0.75
Federal Home Loan Bank borrowings	51,571				329				2.56			227,378				1,421				2.53			160,846				741				1.85
Other borrowings	70,903				868				4.91			70,836				898				5.14			70,623				810				4.60
Total Interest-Bearing Liabilities	4,114,929				12,101				1.18			4,214,604				11,701				1.13			3,665,738				6,502				0.71
Noninterest demand	1,646,934											1,612,548											1,473,331
Other liabilities	61,652											64,262											29,292
Total Liabilities	5,823,515											5,891,414											5,168,361
Shareholders' equity	911,479											879,564											709,674
Total Liabilities & Equity	$	6,734,994										$	6,770,978										$	5,878,035
Cost of deposits									0.76	%										0.67	%										0.39	%
Interest expense as a % of earning assets									0.79	%										0.77	%										0.49	%
Net interest income as a % of earning assets					$	60,219			3.94	%						$	60,861			4.02	%						$	50,294			3.77	%
1On a fully taxable equivalent basis.  All yields and rates have been computed 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
	Six Months Ended June 30, 2019											Six Months Ended June 30, 2018
	Average								Yield/			Average								Yield/
(Amounts in thousands, except ratios)	Balance				Interest				Rate			Balance				Interest				Rate
Assets
Earning assets:
Securities:
Taxable	$	1,178,087			$	18,052			3.06	%		$	1,342,676			$	18,750			2.79	%
Nontaxable	25,329				368				2.91			32,346				580				3.59
Total Securities	1,203,416				18,420				3.06			1,375,022				19,330				2.81
Federal funds sold and other
investments	91,310				1,791				3.96			52,761				1,201				4.59
Loans, net	4,840,406				124,671				5.19			3,910,625				91,833				4.74
Total Earning Assets	6,135,132				144,882				4.76			5,338,408				112,364				4.24
Allowance for loan losses	(32,885		)									(28,356		)
Cash and due from banks	95,526											112,215
Premises and equipment	70,411											65,184
Intangible assets	229,382											166,762
Bank owned life insurance	124,172											121,635
Other assets	131,148											89,086
Total Assets	$	6,752,886										$	5,864,934
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand	$	1,074,460			$	1,989			0.37	%		$	999,287			$	942			0.19	%
Savings	507,097				1,062				0.42			437,574				222				0.10
Money market	1,169,198				5,647				0.97			1,002,243				2,362				0.48
Time deposits	1,065,812				10,683				2.02			783,643				4,808				1.24
Federal funds purchased and securities
sold under agreements to repurchase	138,065				905				1.32			177,771				608				0.69
Federal Home Loan Bank borrowings	138,989				1,750				2.54			218,298				1,771				1.64
Other borrowings	70,870				1,766				5.03			70,587				1,504				4.30
Total Interest-Bearing Liabilities	4,164,491				23,802				1.15			3,689,403				12,217				0.67
Noninterest demand	1,629,836											1,443,813
Other liabilities	62,949											29,221
Total Liabilities	5,857,276											5,162,437
Shareholders' equity	895,610											702,497
Total Liabilities & Equity	$	6,752,886										$	5,864,934
Cost of deposits									0.72	%										0.36	%
Interest expense as a % of earning assets									0.78	%										0.46	%
Net interest income as a % of earning assets					$	121,080			3.98	%						$	100,147			3.78	%
1On a fully taxable equivalent basis.  All yields and rates have been computed using amortized cost.
Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.

CONSOLIDATED QUARTERLY FINANCIAL DATA										(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
			June 30,				March 31,				December 31,				September 30,				June 30,
(Amounts in thousands)			2019				2019				2018				2018				2018
Customer Relationship Funding
Noninterest demand
Commercial			$	1,323,743			$	1,298,468			$	1,217,842			$	1,182,018			$	1,154,225
Retail			251,879				275,383				259,318				233,472				236,838
Public funds			65,822				73,640				68,324				42,474				44,182
Other			28,360				28,518				24,118				30,725				28,407
Total Noninterest Demand			1,669,804				1,676,009				1,569,602				1,488,689				1,463,652
Interest-bearing demand
Commercial			323,818				289,544				211,879				167,865				181,646
Retail			634,099				646,522				650,490				655,429				681,615
Public funds			166,602				164,411				151,663				89,597				113,020
Total Interest-Bearing Demand			1,124,519				1,100,477				1,014,032				912,891				976,281
Total transaction accounts
Commercial			1,647,561				1,588,012				1,429,721				1,349,883				1,335,871
Retail			885,978				921,905				909,808				888,901				918,453
Public funds			232,424				238,051				219,987				132,071				157,202
Other			28,360				28,518				24,118				30,725				28,407
Total Transaction Accounts			2,794,323				2,776,486				2,583,634				2,401,580				2,439,933
Savings			519,732				508,320				493,807				451,958				444,736
Money market
Commercial			517,041				500,649				459,380				423,304				408,005
Retail			590,320				602,378				607,837				524,415				522,783
Public funds			65,610				89,043				106,733				89,221				92,382
Total Money Market			1,172,971				1,192,070				1,173,950				1,036,940				1,023,170
Brokered time certificates			268,998				367,841				220,594				192,182				228,602
Other time certificates			785,185				760,861				705,255				560,850				560,999
			1,054,183				1,128,702				925,849				753,032				789,601
Total Deposits			$	5,541,209			$	5,605,578			$	5,177,240			$	4,643,510			$	4,697,440
Customer sweep accounts			$	82,015			$	148,005			$	214,323			$	189,035			$	200,050

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 define or 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.

GAAP TO NON-GAAP RECONCILIATION					(Unaudited)
SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES
	Quarterly Trends																				Six  Months Ended
(Amounts in thousands, except per share data)	2Q'19				1Q'19				4Q'18				3Q'18				2Q'18				2Q'19				2Q'18
Net Income	$	23,253			$	22,705			$	15,962			$	16,322			$	16,964			$	45,958			$	34,991
Total noninterest income	13,577				12,836				12,714				12,291				12,721				26,413				25,017
Securities losses, net	466				9				425				48				48				475				150
BOLI benefits on death (included in other income)	—				—				(280		)		—				—				—				—
Total Adjustments to Noninterest Income	466				9				145				48				48				475				150
Total Adjusted Noninterest Income	14,043				12,845				12,859				12,339				12,769				26,888				25,167
Total noninterest expense	41,000				43,099				49,464				37,399				38,246				84,099				75,410
Merger related charges	—				(335		)		(8,034		)		(482		)		(695		)		(335		)		(1,165		)
Amortization of intangibles	(1,456		)		(1,458		)		(1,303		)		(1,004		)		(1,004		)		(2,914		)		(1,993		)
Branch reductions and other expense initiatives	(1,517		)		(208		)		(587		)		—				—				(1,725		)		—
Total Adjustments to Noninterest Expense	(2,973		)		(2,001		)		(9,924		)		(1,486		)		(1,699		)		(4,974		)		(3,158		)
Total Adjusted Noninterest Expense	38,027				41,098				39,540				35,913				36,547				79,125				72,252
Income Taxes	6,909				6,409				4,930				4,358				5,189				13,318				10,971
Tax effect of adjustments	874				510				2,623				230				443				1,384				981
Taxes and tax penalties on acquisition-related BOLI redemption	—				—				(485		)		—				—				—				—
Effect of change in corporate tax rate	—				—				—				—				—				—				(248		)
Total Adjustments to Income Taxes	874				510				2,138				230				443				1,384				733
Adjusted Income Taxes	7,783				6,919				7,068				4,588				5,632				14,702				11,704
Adjusted Net Income	$	25,818			$	24,205			$	23,893			$	17,626			$	18,268			$	50,023			$	37,566
Earnings per diluted share, as reported	$	0.45			$	0.44			$	0.31			$	0.34			$	0.35			$	0.88			$	0.73
Adjusted Earnings per Diluted Share	0.50				0.47				0.47				0.37				0.38				0.96				0.79
Average diluted shares outstanding	51,952				52,039				51,237				48,029				47,974				51,998				47,828
Adjusted Noninterest Expense	$	38,027			$	41,098			$	39,540			$	35,913			$	36,547			$	79,125			$	72,252
Foreclosed property expense and net gain/(loss) on sale	174				40				—				137				(405		)		214				(597		)
Net Adjusted Noninterest Expense	$	38,201			$	41,138			$	39,540			$	36,050			$	36,142			$	79,339			$	71,655
Revenue	$	73,713			$	73,610			$	72,698			$	63,853			$	62,928			$	147,323			$	124,986
Total Adjustments to Revenue	466				9				145				48				48				475				150
Impact of FTE adjustment	83				87				116				147				87				170				178
Adjusted Revenue on a fully taxable equivalent basis	$	74,262			$	73,706			$	72,959			$	64,048			$	63,063			$	147,968			$	125,314
Adjusted Efficiency Ratio	51.44		%		55.81		%		54.19		%		56.29		%		57.31		%		53.62		%		57.18		%
Average Assets	$	6,734,994			$	6,770,978			$	6,589,870			$	5,903,327			$	5,878,035			$	6,752,886			$	5,864,934
Less average goodwill and intangible assets	(228,706		)		(230,066		)		(213,713		)		(165,534		)		(166,393		)		(229,382		)		(166,762		)
Average Tangible Assets	$	6,506,288			$	6,540,912			$	6,376,157			$	5,737,793			$	5,711,642			$	6,523,504			$	5,698,172
Return on Average Assets (ROA)	1.38		%		1.36		%		0.96		%		1.10		%		1.16		%		1.37		%		1.20		%
Impact of removing average intangible assets and related amortization	0.12				0.12				0.09				0.08				0.08				0.12				0.09
Return on Average Tangible Assets (ROTA)	1.50				1.48				1.05				1.18				1.24				1.49				1.29
Impact of other adjustments for Adjusted Net Income	0.09				0.02				0.44				0.04				0.04				0.06				0.04
Adjusted Return on Average Tangible Assets	1.59				1.50				1.49				1.22				1.28				1.55				1.33
Average Shareholders' Equity	$	911,479			$	879,564			$	827,759			$	728,290			$	709,674			$	895,610			$	702,497
Less average goodwill and intangible assets	(228,706		)		(230,066		)		(213,713		)		(165,534		)		(166,393		)		(229,382		)		(166,762		)
Average Tangible Equity	$	682,773			$	649,498			$	614,046			$	562,756			$	543,281			$	666,228			$	535,735
Return on Average Shareholders' Equity	10.23		%		10.47		%		7.65		%		8.89		%		9.59		%		10.35		%		10.04		%
Impact of removing average intangible assets and related amortization	4.07				4.39				3.29				3.15				3.49				4.22				3.69
Return on Average Tangible Common Equity (ROTCE)	14.30				14.86				10.94				12.04				13.08				14.57				13.73
Impact of other adjustments for Adjusted Net Income	0.87				0.25				4.50				0.39				0.41				0.57				0.41
Adjusted Return on Average Tangible Common Equity	15.17				15.11				15.44				12.43				13.49				15.14				14.14
Loan interest income excluding accretion on acquired loans	$	58,169			$	58,397			$	55,470			$	46,349			$	44,341			$	116,568			$	87,817
Accretion on acquired loans	4,166				3,938				4,089				2,453				2,208				8,103				4,016
Loan interest income	$	62,335			$	62,335			$	59,559			$	48,802			$	46,549			$	124,671			$	91,833
GAAP TO NON-GAAP RECONCILIATION					(Unaudited)
SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES
	Quarterly Trends																				Six  Months Ended
(Amounts in thousands, except per share data)	2Q'19				1Q'19				4Q'18				3Q'18				2Q'18				2Q'19				2Q'18
Yield on loans excluding accretion on acquired loans	4.82		%		4.89		%		4.77		%		4.59		%		4.50		%		4.86		%		4.53		%
Impact of accretion on acquired loans	0.34				0.33				0.35				0.24				0.23				0.33				0.21
Yield on loans	5.16				5.22				5.12				4.83				4.73				5.19				4.74
Net interest income excluding accretion on acquired loans	$	56,053			$	56,923			$	56,011			$	49,256			$	48,086			$	116,962			$	96,131
Accretion on acquired loans	4,166				3,938				4,089				2,453				2,208				4,118				4,016
Net Interest Income	$	60,219			$	60,861			$	60,100			$	51,709			$	50,294			$	121,080			$	100,147
Net interest margin excluding accretion on acquired loans	3.67		%		3.76		%		3.73		%		3.64		%		3.60		%		3.71		%		3.63		%
Impact of accretion on acquired loans	0.27				0.26				0.27				0.18				0.17				0.27				0.15
Net Interest Margin	3.94				4.02				4.00				3.82				3.77				3.98				3.78

Charles M. Shaffer
Executive Vice President
Chief Operating Officer and Chief Financial Officer
(772) 221-7003
Chuck.Shaffer@seacoastbank.com 

 

 

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