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Seacoast Reports Record Fourth Quarter and Full Year 2019 Results

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Full Year 2019 Net Income Increased 47% to $98.7 million

Continued Improvements in Operating Leverage and Record Loan Originations
Highlight 4Q Results

STUART, Fla., Jan. 23, 2020 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida (“Seacoast” or the "Company”) (SBCF) today reported fourth quarter 2019 net income of $27.2 million, or $0.52 per diluted share, an increase of 70%, or $11.2 million, year-over-year. For the full year 2019, net income was $98.7 million, or $1.90 per share, an increase of 47% year-over-year. Seacoast reported fourth quarter 2019 adjusted net income1 of $26.8 million, or $0.52 per diluted share, an increase of 12%, or $2.9 million, compared to the fourth quarter of 2018. For the full year 2019, adjusted net income1 was $104.6 million, or $2.01 per share, an increase of 32% year-over-year.

For the fourth quarter of 2019, return on average tangible assets was 1.66%, return on average tangible shareholders’ equity was 15.0%, and the efficiency ratio was 48.4%, compared to 1.05%, 10.9%, and 65.8%, respectively, in the fourth quarter of 2018. For the year ended December 31, 2019, return on average tangible assets was 1.56%, return on average tangible shareholders' equity was 14.7% and the efficiency ratio was 51.7% compared to 1.20%, 14.1% and 60.0% for the year ended December 31, 2018.

Adjusted return on average tangible assets1 was 1.57%, adjusted return on average tangible shareholders’ equity1 was 14.2%, and the adjusted efficiency ratio1 was 47.5% in the fourth quarter of 2019, compared to 1.49%, 15.4%, and 54.2%, respectively, in the fourth quarter of 2018. For the year ended December 31, 2019, adjusted return on average tangible assets1 was 1.58%, adjusted return on average tangible shareholders' equity1 was 14.9% and the adjusted efficiency ratio1 was 50.9%, compared to 1.35%, 14.1% and 56.1% for the year ended December 31, 2018.

Dennis S. Hudson, III, Seacoast’s Chairman and CEO, said, "The Seacoast team closed another record year with net income of $27.2 million for the fourth quarter and $98.7 million for the full year 2019. We continue to generate disciplined growth as reflected in record originations for the quarter of $587 million, while maintaining our strict underwriting guidelines and delivering continued improvements in operating leverage."

Hudson added, "During the quarter, we announced the upcoming acquisition of First Bank of the Palm Beaches. This acquisition builds upon our two previous Palm Beach County acquisitions and strengthens our presence in Florida's largest and the nation's seventh largest MSA. We are also excited to announce the acquisition of Fourth Street Banking Company, the holding company for Freedom Bank of St. Petersburg. This is an exceptional addition to our two previous acquisitions in the state's second largest MSA. The combination of this acquisition and the First Bank transaction will provide earnings per share accretion of more than 5% to 2021 and has minimal up front dilution to tangible book value per share, earned back in less than two years."

Charles M. Shaffer, Seacoast’s Chief Operating Officer and Chief Financial Officer, said, “We delivered another quarter of consistent growth in tangible book value per share, ending the period at $14.76, up 20% over the prior year. During the fourth quarter, net interest margin declined only 1 basis point excluding the impact of accretion of purchase discounts on acquired loans, demonstrating the exceptional quality of our balance sheet and customer franchise. This balance sheet is fortified with a robust capital base, strong asset quality and a prudent liquidity position. As the banking cycle continues to mature, Seacoast is committed to maintaining its fortress balance sheet, built on strong capital and strict credit underwriting.”

1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.

Fourth Quarter 2019 Financial Highlights

Income Statement

  • Net income was $27.2 million, or $0.52 per diluted share, compared to $25.6 million, or $0.49, for the prior quarter and $16.0 million, or $0.31, for the fourth quarter of 2018. For the year ended December 31, 2019, net income was $98.7 million, or $1.90 per diluted share, compared to $67.3 million, or $1.38, for the year ended December 31, 2018. Adjusted net income1 was $26.8 million, or $0.52 per diluted share, compared to $27.7 million, or $0.53, for the prior quarter and $23.9 million, or $0.47, for the fourth quarter of 2018. For the year ended December 31, 2019, adjusted net income1 was $104.6 million, or $2.01 per diluted share, compared to $79.1 million, or $1.62, for the year ended December 31, 2018.

  • Net revenues were $78.1 million, an increase of $3.2 million, or 4%, compared to the prior quarter, and an increase of $5.4 million, or 7%, compared to the fourth quarter of 2018. For the year ended December 31, 2019, net revenues were $300.4 million, an increase of $38.8 million, or 15%, compared to the year ended December 31, 2018. Adjusted revenues1 were $75.6 million, an increase of $0.8 million, or 1%, from the prior quarter and an increase of $2.8 million, or 4%, from the fourth quarter of 2018. For the year ended December 31, 2019, adjusted revenues1 were $298.2 million, an increase of $36.3 million, or 14%, compared to the year ended December 31, 2018.

  • Net interest income totaled $61.8 million, an increase of $0.8 million, or 1%, from the prior quarter and an increase of $1.8 million, or 3%, from the fourth quarter of 2018. For the year ended December 31, 2019, net interest income was $243.6 million, an increase of $32.1 million, or 15%, compared to the year ended December 31, 2018.

  • Net interest margin was 3.84% in the fourth quarter of 2019, 3.89% in the third quarter of 2019 and 4.00% in the fourth quarter of 2018. Quarter-over-quarter, the yield on loans contracted 17 basis points, the yield on securities contracted 12 basis points, and the cost of deposits decreased 12 basis points. The impact on net interest margin from accretion of purchase discounts on acquired loans was 21 basis points in the fourth quarter of 2019, compared to 25 basis points in the prior quarter and 27 basis points in the fourth quarter of 2018. Excluding the impact of accretion, the net interest margin decreased only 1 basis point from the prior quarter and the yield on loans contracted 13 basis points. Decreases in the yield on both loans and securities reflect the impact of a lower interest rate environment, affecting variable-rate portfolios and resulting in lower add-on rates for new loans originated and securities purchased.

  • Noninterest income totaled $16.4 million, an increase of $2.4 million, or 17%, compared to the prior quarter and an increase of $3.7 million, or 29%, from the fourth quarter of 2018. For the year ended December 31, 2019, noninterest income was $56.7 million, an increase of $6.7 million, or 13%, compared to the year ended December 31, 2018. Changes in noninterest income consisted of the following:

    • After a record third quarter boosted by refinance activity, mortgage banking fees decreased $0.6 million in the fourth quarter to $1.5 million. For the full year, mortgage banking fees increased $1.8 million, or 39%, to $6.5 million compared to the prior year, reflecting our strategic focus on generating saleable volume.

    • Interchange income increased $0.2 million, or 6%, in the fourth quarter, and $1.1 million, or 9%, for the full year, the result of increased transaction activity across a growing customer base.

    • Lower other income in the fourth quarter reflects the $1.0 million BOLI death benefit recorded in the third quarter partially offset by swap fees of $0.6 million in the fourth quarter of 2019.

    • During the quarter, securities gains of $2.5 million resulted from the opportunistic sale of $79.8 million of longer duration bonds yielding 2.8% transacted when the 10-year treasury rate declined early in the quarter.

  • The provision for loan losses was $4.8 million compared to $2.3 million in the prior quarter and $2.3 million in the fourth quarter of 2018. The increase in provision primarily reflects strong loan growth in the fourth quarter of 2019 and a modestly higher increase in net charge-offs during the fourth quarter when compared to the third quarter of 2019. Looking back over the last four quarters, net charge offs were 0.16% of average loans outstanding, in line with our expectations and reflecting continued strong asset quality trends.

  • Noninterest expense was $38.1 million, a decrease of $0.5 million, or 1%, compared to the prior quarter and a decrease of $11.4 million, or 23%, from the fourth quarter of 2018. For the year ended December 31, 2019, noninterest expense was $160.7 million, a decrease of $1.5 million, or 1%, compared to the year ended December 31, 2018. Changes from the third quarter of 2019 in noninterest expense consisted of the following:

    • Salaries and benefits decreased $1.0 million on a combined basis, the result of lower incentive accruals and our continued proven success at focusing on cost control across the franchise.

    • Legal and professional fees increased $0.4 million, including $0.6 million incurred in the fourth quarter for merger related activities.

    • Other expenses increased $0.6 million, including increases of $0.3 million in lending-related costs to support increased production and $0.2 million in recruiting and supporting the onboarding of new sales talent. For the full year, other expenses are down $2.0 million compared to 2018, reflecting our continued focus on efficiency and streamlining operations.

    • During the third quarter of 2019, the FDIC announced the achievement of their target deposit insurance reserve ratio, resulting in our ability to offset FDIC assessments with previously awarded credits. The Company has remaining credits of $0.7 million, which will be applied to future assessments if the FDIC’s reserve ratio remains above the target threshold.

  • Seacoast recorded $8.1 million in income tax expense in the fourth quarter of 2019, compared to $8.5 million in the prior quarter and $4.9 million in the fourth quarter of 2018. The prior quarter included net additional income tax expense of $0.7 million resulting from the change in the Florida corporate income tax rate.

  • Year to date adjusted revenues1 increased 14% compared to prior year while adjusted noninterest expense1 increased 3%, generating 11% operating leverage.

  • The efficiency ratio was 48.4% compared to 48.6% in the prior quarter and 65.8% in the fourth quarter of 2018. The adjusted efficiency ratio1 was 47.5% compared to 49.0% in the prior quarter and 54.2% in the fourth quarter of 2018.

Balance Sheet

  • At December 31, 2019, the Company had total assets of $7.1 billion and total shareholders' equity of $985.6 million. Book value per share was $19.13 and tangible book value per share was $14.76, compared to $18.70 and $14.30, respectively, at September 30, 2019 and $16.83 and $12.33, respectively, at December 31, 2018. Year-over-year, tangible book value per share increased 20%.

  • Debt Securities totaled $1.2 billion at December 31, 2019, an increase of $13.8 million compared to September 30, 2019 and a decrease of $15.6 million from December 31, 2018. During the quarter, securities gains of $2.5 million resulted from the opportunistic sale of $79.8 million of longer duration bonds yielding 2.8% transacted when the 10-year treasury rate declined early in the quarter.

  • Loans totaled $5.2 billion at December 31, 2019, an increase of $212.1 million, or 4%, compared to September 30, 2019, and an increase of $373.2 million, or 8%, from December 31, 2018. Changes in total loans consisted of the following:

    • New loan originations of $587 million, compared to $488 million in the prior quarter, contributed to net loan growth in the quarter of 17% on an annualized basis. Excluding the $99.0 million residential mortgage portfolio purchased during the quarter, net loan growth was 9% on an annualized basis. Loans outstanding have grown 8% year-over-year.

    • Commercial originations during the fourth quarter of 2019 were $247.0 million, a decrease of $35.2 million, or 12%, compared to the third quarter of 2019. Excluding the purchase of a $52.1 million commercial real estate loan portfolio in the third quarter of 2019, commercial originations increased in the fourth quarter $16.8 million, or 7%. Compared to the fourth quarter of 2018, commercial originations increased $87.6 million, or 55%.

    • Residential loan originations were $225.1 million in the fourth quarter of 2019, compared to $103.1 million in the third quarter of 2019 and $104.7 million in the fourth quarter of 2018. Originations in the fourth quarter of 2019 include the opportunistic purchase of a $99.0 million residential mortgage portfolio. Excluding that purchase, residential loan originations increased $28.8 million, or 30%, compared to the third quarter of 2019, and $21.3 million, or 20%, compared to the fourth quarter of 2018.

    • Consumer and small business originations for the fourth quarter of 2019 were $115.0 million, an increase of 12% compared to the third quarter of 2019 and an increase of 1% compared to the fourth quarter of 2018.

    • The Company continues to prudently manage commercial real estate exposure. Construction and land development and commercial real estate loans remain well below regulatory guidance at 40% and 204% of total bank-level risk based capital, respectively, compared to 42% and 204%, respectively, in the third quarter of 2019. On a consolidated basis, construction and land development and commercial real estate loans represent 38% and 191%, respectively, of total consolidated risk based capital.

    • The funded balances of our top 10 and top 20 relationships represented 21% and 39%, respectively, of total consolidated risk based capital, compared to 22% and 37% in the fourth quarter of 2018 and 34% and 54% in the fourth quarter of 2016. Our average commercial loan size is $365,000.

  • Pipelines (loans in underwriting and approval or approved and not yet closed) totaled $339.2 million at December 31, 2019.

    • Commercial pipelines were $256.0 million, an increase of 56% compared to December 31, 2018. The increase year-over-year reflects the successful addition of talent to our commercial banking team and better execution across the franchise.

    • Residential saleable pipelines were $19.0 million, an increase of 40% compared to December 31, 2018. The year-over-year increase reflects our continued strategic focus of generating saleable volume and the addition of talent across the franchise.

    • Retained residential pipelines were $19.1 million, a decrease of 37% compared to December 31, 2018. The year-over-year decrease reflects our continued strategic focus on generating saleable volume.

    • Consumer and small business pipelines were $45.1 million, a decrease of 16% compared to December 31, 2018.

  • Total deposits were $5.6 billion as of December 31, 2019, a decrease of $88.4 million, or 2%, sequentially and an increase of $407.5 million, or 8%, from the prior year.

    • Overall cost of deposits declined to 61 basis points in the fourth quarter of 2019 from 73 basis points in the prior quarter, reflecting the impact of interest rate cuts in the second half of 2019 by the Federal Reserve. By keeping a targeted focus on customer acquisition and a relationship-driven strategy, the Company has successfully maintained discipline in deposit pricing.

    • Total transaction accounts increased 7% year-over-year, reflecting continued strong growth in core customer balances, and represent 50% of overall deposit funding.

    • Interest-bearing deposits (interest-bearing demand, savings and money market deposits) increased year-over-year $127.5 million, or 5%, to $2.8 billion, noninterest bearing demand deposits increased $20.9 million, or 1%, to $1.6 billion, and CDs (excluding brokered) increased $6.9 million, or 1%, to $712.2 million.

  • Fourth quarter return on average tangible assets (ROTA) was 1.66%, compared to 1.61% in the prior quarter and 1.05% in the fourth quarter of 2018. Adjusted ROTA1 was 1.57% compared to 1.67% in the prior quarter and 1.49% in the fourth quarter of 2018. The decline in adjusted ROTA1 in the current quarter reflects the impact of higher provision expense and substantial loan growth, partially offset by higher net interest income and lower noninterest expense.

Capital

  • Fourth quarter return on average tangible common equity (ROTCE) was 15.0%, compared to 14.7% in the prior quarter and 10.9% in the fourth quarter of 2018. Adjusted ROTCE1 was 14.2% compared to 15.3% in the prior quarter and 15.4% in the fourth quarter of 2018. The decline in adjusted ROTCE1 in the fourth quarter reflects the impact of a robust growing capital base.

  • The tier 1 capital ratio was 15.0%, total capital ratio was 15.7% and the tier 1 leverage ratio was 12.2% at December 31, 2019.

  • Tangible common equity to tangible assets was 11.1% at December 31, 2019, compared to 11.1% at September 30, 2019 and 9.7% at December 31, 2018.

Asset Quality

  • Nonperforming loans to total loans outstanding was 0.52% at December 31, 2019, 0.52% at September 30, 2019, and 0.55% at December 31, 2018.

  • Nonperforming assets to total assets was 0.55% at December 31, 2019, 0.58% at September 30, 2019 and 0.58% at December 31, 2018.

  • The ratio of allowance for loan losses to total loans was 0.68% at December 31, 2019, 0.67% at September 30, 2019, and 0.67% at December 31, 2018. The ratio of allowance for loan losses to non-acquired loans was 0.80% at December 31, 2019, 0.84% at September 30, 2019, and 0.89% at December 31, 2018.

  • Net charge-offs were $3.2 million, or 0.25%, of average loans for the fourth quarter of 2019 compared to $2.1 million, or 0.17%, of average loans in the third quarter of 2019 and $3.7 million, or 0.32% of average loans in the fourth quarter of 2018. Net charge-offs for the four most recent quarters averaged 0.16%, in line with our expectations for full year 2019.


FINANCIAL HIGHLIGHTS

(Amounts in thousands except per share data)

(Unaudited)

Quarterly Trends

4Q'19

3Q'19

2Q'19

1Q'19

4Q'18

Selected Balance Sheet Data:

Total Assets

$

7,108,511

$

6,890,645

$

6,824,886

$

6,783,389

$

6,747,659

Gross Loans

5,198,404

4,986,289

4,888,139

4,828,441

4,825,214

Total Deposits

5,584,753

5,673,141

5,541,209

5,605,578

5,177,240

Performance Measures:

Net Income

$

27,176

$

25,605

$

23,253

$

22,705

$

15,962

Net Interest Margin

3.84

%

3.89

%

3.94

%

4.02

%

4.00

%

Average Diluted Shares Outstanding

52,081

51,935

51,952

52,039

51,237

Diluted Earnings Per Share (EPS)

$

0.52

$

0.49

$

0.45

$

0.44

$

0.31

Return on (annualized):

Average Assets (ROA)

1.54

%

1.49

%

1.38

%

1.36

%

0.96

%

Average Tangible Assets (ROTA)

1.66

1.61

1.50

1.48

1.05

Average Tangible Common Equity (ROTCE)

14.95

14.73

14.30

14.86

10.94

Efficiency Ratio

48.36

48.62

53.48

56.55

65.76

Adjusted Operating Measures1:

Adjusted Net Income

$

26,837

$

27,731

$

25,818

$

24,205

$

23,893

Adjusted Diluted EPS

0.52

0.53

0.50

0.47

0.47

Adjusted ROTA

1.57

%

1.67

%

1.59

%

1.50

%

1.49

%

Adjusted ROTCE

14.19

15.30

15.17

15.11

15.44

Adjusted Efficiency Ratio

47.52

48.96

51.44

55.81

54.19

Adjusted Noninterest Expense as a
Percent of Average Tangible Assets

2.11

2.22

2.34

2.55

2.46

Other Data:

Market capitalization2

$

1,574,775

$

1,303,010

$

1,309,158

$

1,354,759

$

1,336,415

Full-time equivalent employees

867

867

852

902

902

Number of ATMs

78

80

81

84

87

Full service banking offices

48

48

49

50

51

Registered online users

109,684

107,241

104,017

102,274

99,415

Registered mobile devices

99,361

96,384

92,281

87,844

83,151

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

Seacoast remains confident in the Company's ability to achieve Vision 2020 targets announced in February 2017.

Vision 2020 Targets

Return on Tangible Assets

1.30% +

Return on Tangible Common Equity

16% +

Efficiency Ratio

Below 50%

Since announcing Vision 2020 targets in February 2017, the Company has achieved a compounded annual growth rate in tangible book value per share of 13%, steadily building shareholder value.

Fourth Quarter and Full Year 2019 Operating Highlights

Modernizing How Seacoast Sells

  • In 2019, interchange income increased by $1.1 million, or 9%, compared to the prior year as Seacoast’s debit card program surpassed $1 billion in retail sales. The Company’s debit card program consistently performs in the top quartile of Visa partner banks of similar size.

  • Seacoast Wealth Management added approximately $140 million in new assets under management in 2019, growing 27% year-over-year. Growth in assets under management, industry leading products and investments in sales and support teams throughout the footprint resulted in a 7% increase year-over-year in wealth related revenue.

  • Seacoast has partnered with a leading consumer insights firm to capture and analyze feedback from customers. Program implementation and launch were completed in the third quarter of 2019, with the objective of identifying additional customer opportunities.

Lowering Cost to Serve

  • Seacoast consolidated three banking center locations in 2019, achieving the Vision 2020 objective of reducing the footprint by 20% to meet evolving customer needs. At December 31, 2019, deposits per banking center exceeded $116 million compared to $102 million at December 31, 2018.

Driving Improvements to Operations

  • In 2019, Seacoast's continued focus on efficiency and streamlining operations improved adjusted noninterest expenses1 as a percent of average tangible assets to 2.11% in the fourth quarter compared to 2.46% a year ago.

  • Earlier this year, Seacoast further enhanced the interactive voice response (IVR) system in the Florida-based Customer Support Center. The system provides customers with secure, self-serve options and expedites call routing processes. During the fourth quarter of 2019, more than 215,000 routine customer service calls were serviced solely by the IVR system. This represented 71% of total customer service calls received. This investment should continue to provide added scalability and elevate the customer experience in 2020.

  • Late in 2018, Seacoast launched a large-scale initiative to implement a fully digital loan origination platform across all business banking units. In the fourth quarter of 2019, this platform enabled record loan originations in the commercial banking team. The Company recognized $350,000 in annualized expense reductions as a result of this platform implementation. This investment should lead to further gains in operational efficiency and banker productivity in 2020 and beyond.

Scaling and Evolving Seacoast's Culture

  • Seacoast's balanced growth strategy, combining organic growth with value-creating acquisitions, continues to benefit shareholders and provide new opportunities for associates. The pending acquisitions of First Bank of the Palm Beaches and Fourth Street Banking Company, subject to shareholder and regulatory approvals, will add experienced bankers in two growing markets and will further support the Company's sustainable and profitable growth.

OTHER INFORMATION

Conference Call Information
Seacoast will host a conference call on January 24, 2020 at 10:00 a.m. (Eastern Time) to discuss the fourth quarter and full year 2019 earnings results and business trends. Investors may call in (toll-free) by dialing (888) 517-2513 (passcode: 7556 513; 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 January 24, 2020 by dialing (888) 843-7419 (domestic) and using passcode: 7556 513#.

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 January 24, 2020, 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 (SBCF)
Seacoast Banking Corporation of Florida is one of the largest community banks headquartered in Florida with approximately $7.1 billion in assets and $5.6 billion in deposits as of December 31, 2019. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, and 48 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.

Additional Information
Seacoast has filed a registration statement on Form S-4 with the United States Securities and Exchange Commission (the “SEC”) in connection with the proposed merger of First Bank of the Palm Beaches (“First Bank”) with and into Seacoast Bank and will file a registration statement on Form S-4 with the SEC in connection with the proposed merger of Fourth Street Banking Company (“Fourth Street”) with and into Seacoast and Freedom Bank with and into Seacoast Bank. The registration statement in connection with the First Bank merger includes a proxy statement of First Bank and a prospectus of Seacoast and the registration statement in connection with the Fourth Street merger will include a proxy statement of Fourth Street and a prospectus of Seacoast. A definitive proxy statement/prospectus will be mailed to shareholders of First Bank and Fourth Street. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. WE URGE INVESTORS TO READ THE PROXY STATEMENTS/PROSPECTUSES AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE MERGERS OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENTS/PROSPECTUSES BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.

Investors may obtain (when available) these documents free of charge at the SEC’s Web site (www.sec.gov). In addition, documents filed with the SEC by Seacoast will be available free of charge by contacting Investor Relations at (772) 288-6085.

First Bank and Fourth Street, their directors, and executive officers and other members of management and employees may be considered participants in the solicitation of proxies in connection with the proposed mergers of First Bank with and into Seacoast Bank and Fourth Street with and into Seacoast. Information regarding the participants in the proxy solicitation of First Bank and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC. Information regarding the participants in the proxy solicitation of Fourth Street and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC.

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, new initiatives and for integration of banks that we have acquired, or expect to acquire, including First Bank, 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.

The risks relating to the proposed First Bank and Fourth Street mergers include, without limitation: the timing to consummate the proposed mergers; the risk that a condition to closing of the proposed mergers may not be satisfied; the risk that a regulatory approval that may be required for the proposed mergers is not obtained or is obtained subject to conditions that are not anticipated; the diversion of management time on issues related to the proposed mergers; 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 mergers 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 disruptions, 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, 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

Twelve Months Ended

(Amounts in thousands, except ratios and per share data)

4Q'19

3Q'19

2Q'19

1Q'19

4Q'18

4Q'19

4Q'18

Summary of Earnings

Net income

$

27,176

$

25,605

$

23,253

$

22,705

$

15,962

$

98,739

$

67,275

Adjusted net income1

26,837

27,731

25,818

24,205

23,893

104,591

79,085

Net interest income2

61,846

61,027

60,219

60,861

60,100

243,953

211,956

Net interest margin2,3

3.84

%

3.89

%

3.94

%

4.02

%

4.00

%

3.92

%

3.85

%

Performance Ratios

Return on average assets-GAAP basis3

1.54

%

1.49

%

1.38

%

1.36

%

0.96

%

1.45

%

1.11

%

Return on average tangible assets-GAAP basis3,4

1.66

1.61

1.50

1.48

1.05

1.56

1.20

Adjusted return on average tangible assets1,3,4

1.57

1.67

1.59

1.50

1.49

1.58

1.35

Return on average shareholders' equity-GAAP basis3

11.04

10.73

10.23

10.47

7.65

10.63

9.08

Return on average tangible common equity-GAAP basis3,4

14.95

14.73

14.30

14.86

10.94

14.72

12.54

Adjusted return on average tangible common equity1,3,4

14.19

15.30

15.17

15.11

15.44

14.93

14.06

Efficiency ratio5

48.36

48.62

53.48

56.55

65.76

51.71

59.98

Adjusted efficiency ratio1

47.52

48.96

51.44

55.81

54.19

50.90

56.13

Noninterest income to total revenue (excluding securities gains/losses)

18.30

19.53

18.93

17.45

17.97

18.56

19.32

Tangible common equity to tangible assets4

11.05

11.05

10.65

10.18

9.72

11.05

9.72

Average loan-to-deposit ratio

90.71

88.35

87.27

90.55

89.14

89.21

85.85

End of period loan-to-deposit ratio

93.44

88.36

88.53

86.38

93.43

93.44

93.43

Per Share Data

Net income diluted-GAAP basis

$

0.52

$

0.49

$

0.45

$

0.44

$

0.31

$

1.90

$

1.38

Net income basic-GAAP basis

0.53

0.50

0.45

0.44

0.32

1.92

1.40

Adjusted earnings1

0.52

0.53

0.50

0.47

0.47

2.01

1.62

Book value per share common

19.13

18.70

18.08

17.44

16.83

19.13

16.83

Tangible book value per share

14.76

14.30

13.65

12.98

12.33

14.76

12.33

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

Twelve Months Ended

(Amounts in thousands, except per share data)

4Q'19

3Q'19

2Q'19

1Q'19

4Q'18

4Q'19

4Q'18

Interest on securities:

Taxable

$

8,500

$

8,802

$

8,933

$

9,119

$

9,528

$

35,354

$

37,860

Nontaxable

130

131

143

151

200

555

884

Interest and fees on loans

62,868

63,092

62,288

62,287

59,495

250,535

199,984

Interest on federal funds sold and other investments

788

800

873

918

835

3,379

2,670

Total Interest Income

72,286

72,825

72,237

72,475

70,058

289,823

241,398

Interest on deposits

3,589

4,334

4,825

3,873

3,140

16,621

8,763

Interest on time certificates

5,084

6,009

5,724

4,959

3,901

21,776

11,684

Interest on borrowed money

1,853

1,534

1,552

2,869

3,033

7,808

9,436

Total Interest Expense

10,526

11,877

12,101

11,701

10,074

46,205

29,883

Net Interest Income

61,760

60,948

60,136

60,774

59,984

243,618

211,515

Provision for loan losses

4,800

2,251

2,551

1,397

2,342

10,999

11,730

Net Interest Income After Provision for Loan Losses

56,960

58,697

57,585

59,377

57,642

232,619

199,785

Noninterest income:

Service charges on deposit accounts

2,960

2,978

2,894

2,697

3,019

11,529

11,198

Trust fees

1,096

1,183

1,147

1,017

1,040

4,443

4,183

Mortgage banking fees

1,514

2,127

1,734

1,115

809

6,490

4,682

Brokerage commissions and fees

483

449

541

436

468

1,909

1,732

Marine finance fees

338

153

201

362

185

1,054

1,398

Interchange income

3,387

3,206

3,405

3,401

3,198

13,399

12,335

BOLI income

904

928

927

915

1,091

3,674

4,291

SBA gains

576

569

691

636

519

2,472

2,474

Other

2,579

3,197

2,503

2,266

2,810

10,545

8,352

13,837

14,790

14,043

12,845

13,139

55,515

50,645

Securities gains/(losses), net

2,539

(847

)

(466

)

(9

)

(425

)

1,217

(623

)

Total Noninterest Income

16,376

13,943

13,577

12,836

12,714

56,732

50,022

Noninterest expenses:

Salaries and wages

17,263

18,640

19,420

18,506

22,172

73,829

71,111

Employee benefits

3,323

2,973

3,195

4,206

3,625

13,697

12,945

Outsourced data processing costs

3,645

3,711

3,876

3,845

5,809

15,077

16,374

Telephone / data lines

651

603

893

811

602

2,958

2,481

Occupancy

3,368

3,368

3,741

3,807

3,747

14,284

13,394

Furniture and equipment

1,416

1,528

1,544

1,757

2,452

6,245

6,744

Marketing

885

933

1,211

1,132

1,350

4,161

5,085

Legal and professional fees

2,025

1,648

2,033

2,847

3,668

8,553

9,961

FDIC assessments

0

56

337

488

571

881

2,195

Amortization of intangibles

1,456

1,456

1,456

1,458

1,303

5,826

4,300

Foreclosed property expense and net (gain)/loss on sale

3

262

(174

)

(40

)

0

51

461

Other

4,022

3,405

3,468

4,282

4,165

15,177

17,222

Total Noninterest Expense

38,057

38,583

41,000

43,099

49,464

160,739

162,273

Income Before Income Taxes

35,279

34,057

30,162

29,114

20,892

128,612

87,534

Income taxes

8,103

8,452

6,909

6,409

4,930

29,873

20,259

Net Income

$

27,176

$

25,605

$

23,253

$

22,705

$

15,962

$

98,739

$

67,275

Per share of common stock:

Net income diluted

$

0.52

$

0.49

$

0.45

$

0.44

$

0.31

$

1.90

$

1.38

Net income basic

0.53

0.50

0.45

0.44

0.32

1.92

1.40

Cash dividends declared

Average diluted shares outstanding

52,081

51,935

51,952

52,039

51,237

52,029

48,748

Average basic shares outstanding

51,517

51,473

51,446

51,359

50,523

51,449

47,969


CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

December 31,

September 30,

June 30,

March 31,

December 31,

(Amounts in thousands)

2019

2019

2019

2019

2018

Assets

Cash and due from banks

$

89,843

$

106,349

$

97,792

$

98,270

$

92,242

Interest bearing deposits with other banks

34,688

25,911

61,987

105,741

23,709

Total Cash and Cash Equivalents

124,531

132,260

159,779

204,011

115,951

Time deposits with other banks

3,742

4,579

4,980

8,174

8,243

Debt Securities:

Available for sale (at fair value)

946,855

920,811

914,615

877,549

865,831

Held to maturity (at amortized cost)

261,369

273,644

287,302

295,485

357,949

Total Debt Securities

1,208,224

1,194,455

1,201,917

1,173,034

1,223,780

Loans held for sale

20,029

26,768

17,513

13,900

11,873

Loans

5,198,404

4,986,289

4,888,139

4,828,441

4,825,214

Less: Allowance for loan losses

(35,154

)

(33,605

)

(33,505

)

(32,822

)

(32,423

)

Net Loans

5,163,250

4,952,684

4,854,634

4,795,619

4,792,791

Bank premises and equipment, net

66,615

67,873

68,738

70,412

71,024

Other real estate owned

12,390

13,593

11,043

11,921

12,802

Goodwill

205,286

205,286

205,260

205,260

204,753

Other intangible assets, net

20,066

21,318

22,672

23,959

25,977

Bank owned life insurance

126,181

125,277

125,233

124,306

123,394

Net deferred tax assets

16,457

17,168

19,353

24,647

28,954

Other assets

141,740

129,384

133,764

128,146

128,117

Total Assets

$

7,108,511

$

6,890,645

$

6,824,886

$

6,783,389

$

6,747,659

Liabilities and Shareholders' Equity

Liabilities

Deposits

Noninterest demand

$

1,590,493

$

1,652,927

$

1,669,804

$

1,676,009

$

1,569,602

Interest-bearing demand

1,181,732

1,115,455

1,124,519

1,100,477

1,014,032

Savings

519,152

528,214

519,732

508,320

493,807

Money market

1,108,363

1,158,862

1,172,971

1,192,070

1,173,950

Other time certificates

504,837

537,183

553,107

539,202

513,312

Brokered time certificates

472,857

458,418

268,998

367,841

220,594

Time certificates of more than $250,000

207,319

222,082

232,078

221,659

191,943

Total Deposits

5,584,753

5,673,141

5,541,209

5,605,578

5,177,240

Securities sold under agreements to repurchase

86,121

70,414

82,015

148,005

214,323

Federal Home Loan Bank borrowings

315,000

50,000

140,000

3,000

380,000

Subordinated debt

71,085

71,014

70,944

70,874

70,804

Other liabilities

65,913

63,398

60,479

59,508

41,025

Total Liabilities

6,122,872

5,927,967

5,894,647

5,886,965

5,883,392

Shareholders' Equity

Common stock

5,151

5,148

5,146

5,141

5,136

Additional paid in capital

786,242

784,661

782,928

780,680

778,501

Retained earnings

195,813

168,637

143,032

119,779

97,074

Treasury stock

(6,032

)

(6,079

)

(6,137

)

(4,959

)

(3,384

)

981,174

952,367

924,969

900,641

877,327

Accumulated other comprehensive income/(loss), net

4,465

10,311

5,270

(4,217

)

(13,060

)

Total Shareholders' Equity

985,639

962,678

930,239

896,424

864,267

Total Liabilities & Shareholders' Equity

$

7,108,511

$

6,890,645

$

6,824,886

$

6,783,389

$

6,747,659

Common shares outstanding

51,514

51,482

51,461

51,414

51,361


CONSOLIDATED QUARTERLY FINANCIAL DATA

(Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

(Amounts in thousands)

4Q'19

3Q'19

2Q'19

1Q'19

4Q'18

Credit Analysis

Net charge-offs (recoveries) - non-acquired loans

$

2,930

$

2,106

$

1,621

$

762

$

3,693

Net charge-offs (recoveries) - acquired loans

295

5

220

201

56

Total Net Charge-offs (Recoveries)

3,225

2,111

1,841

963

3,749

TDR valuation adjustments

$

27

$

40

$

27

$

35

$

35

Net charge-offs (recoveries) to average loans - non-acquired loans

0.23

%

0.17

%

0.13

%

0.06

%

0.32

%

Net charge-offs (recoveries) to average loans - acquired loans

0.02

0.02

0.02

Total Net Charge-offs (Recoveries) to Average Loans

0.25

0.17

0.15

0.08

0.32

Provision for loan losses - non-acquired loans

$

4,041

$

2,241

$

2,326

$

1,709

$

2,343

Provision for (recapture of) loan losses - acquired loans

759

10

225

(312

)

(1

)

Total Provision for Loan Losses

$

4,800

$

2,251

$

2,551

$

1,397

$

2,342

Allowance for loan losses - non-acquired loans

$

34,573

$

33,488

$

33,393

$

32,715

$

31,803

Allowance for loan losses - acquired loans

581

117

112

107

620

Total Allowance for Loan Losses

$

35,154

$

33,605

$

33,505

$

32,822

$

32,423

Non-acquired loans at end of period

$

4,317,919

$

4,010,299

$

3,817,358

$

3,667,221

$

3,588,251

Purchased noncredit impaired loans at end of period

867,819

962,609

1,057,200

1,147,432

1,222,529

Purchased credit impaired loans at end of period

12,666

13,381

13,581

13,788

14,434

Total Loans

$

5,198,404

$

4,986,289

$

4,888,139

$

4,828,441

$

4,825,214

Non-acquired loans allowance for loan losses to non-acquired loans at end of period

0.80

%

0.84

%

0.87

%

0.89

%

0.89

%

Total allowance for loan losses to total loans at end of period

0.68

0.67

0.69

0.68

0.67

Purchase discount on acquired loans at end of period

3.83

3.76

3.76

3.80

3.86

End of Period

Nonperforming loans - non-acquired

$

20,990

$

20,400

$

15,810

$

15,423

$

15,783

Nonperforming loans - acquired

5,965

5,644

6,986

6,990

10,693

Other real estate owned - non-acquired

5,177

5,177

66

831

386

Other real estate owned - acquired

372

1,574

1,612

1,725

3,020

Bank branches closed included in other real estate owned

6,842

6,842

9,365

9,365

9,396

Total Nonperforming Assets

$

39,346

$

39,637

$

33,839

$

34,334

$

39,278

Restructured loans (accruing)

$

11,100

$

12,395

$

14,534

$

14,857

$

13,346

Nonperforming loans to loans at end of period - non-acquired

0.49

%

0.51

%

0.41

%

0.42

%

0.44

%

Nonperforming loans to loans at end of period - acquired

0.68

0.58

0.65

0.60

0.86

Total Nonperforming Loans to Loans at End of Period

0.52

0.52

0.47

0.46

0.55

Nonperforming assets to total assets - non-acquired

0.46

%

0.47

%

0.37

%

0.38

%

0.38

%

Nonperforming assets to total assets - acquired

0.09

0.11

0.13

0.13

0.20

Total Nonperforming Assets to Total Assets

0.55

0.58

0.50

0.51

0.58

December 31,

September 30,

June 30,

March 31,

December 31,

Loans

2019

2019

2019

2019

2018

Construction and land development

$

325,113

$

326,324

$

379,991

$

417,565

$

443,568

Commercial real estate - owner occupied

1,034,963

1,025,040

1,005,876

989,234

970,181

Commercial real estate - non-owner occupied

1,344,008

1,285,327

1,184,409

1,173,183

1,161,885

Residential real estate

1,507,863

1,409,946

1,400,184

1,329,166

1,324,377

Consumer

208,205

217,366

215,932

206,414

202,881

Commercial and financial

778,252

722,286

701,747

712,879

722,322

Total Loans

$

5,198,404

$

4,986,289

$

4,888,139

$

4,828,441

$

4,825,214


AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1

(Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

4Q'19

3Q'19

4Q'18

Average

Yield/

Average

Yield/

Average

Yield/

(Amounts in thousands)

Balance

Interest

Rate

Balance

Interest

Rate

Balance

Interest

Rate

Assets

Earning assets:

Securities:

Taxable

$

1,179,843

$

8,500

2.88

%

$

1,171,393

$

8,802

3.01

%

$

1,227,648

$

9,528

3.10

%

Nontaxable

20,709

162

3.13

21,194

164

3.09

29,255

252

3.45

Total Securities

1,200,552

8,662

2.89

1,192,587

8,966

3.01

1,256,903

9,780

3.11

Federal funds sold and other

investments

84,961

788

3.68

84,705

800

3.75

87,146

835

3.80

Loans, net

5,104,272

62,922

4.89

4,945,953

63,138

5.06

4,611,691

59,559

5.12

Total Earning Assets

6,389,785

72,372

4.49

6,223,245

72,904

4.65

5,955,740

70,174

4.67

Allowance for loan losses

(34,072

)

(33,997

)

(33,864

)

Cash and due from banks

99,008

88,539

124,299

Premises and equipment

67,485

68,301

75,120

Intangible assets

226,060

227,389

213,713

Bank owned life insurance

125,597

125,249

132,495

Other assets

122,351

121,850

122,367

Total Assets

$

6,996,214

$

6,820,576

$

6,589,870

Liabilities and Shareholders' Equity

Interest-bearing liabilities:

Interest-bearing demand

$

1,190,681

$

983

0.33

%

$

1,116,434

$

1,053

0.37

%

$

974,711

$

515

0.21

%

Savings

528,771

422

0.32

522,831

531

0.40

509,434

418

0.33

Money market

1,148,453

2,184

0.75

1,173,042

2,750

0.93

1,161,599

2,207

0.75

Time deposits

1,078,297

5,084

1.87

1,159,272

6,009

2.06

899,153

3,901

1.72

Securities sold under agreements to repurchase

73,693

226

1.22

75,785

300

1.57

242,963

732

1.20

Federal funds purchased and
Federal Home Loan Bank borrowings

181,134

845

1.85

68,804

414

2.39

240,799

1,468

2.42

Other borrowings

71,045

782

4.37

70,969

820

4.58

70,764

833

4.67

Total Interest-Bearing Liabilities

4,272,074

10,526

0.98

4,187,137

11,877

1.13

4,099,423

10,074

0.97

Noninterest demand

1,680,734

1,626,269

1,628,842

Other liabilities

67,206

60,500

33,846

Total Liabilities

6,020,014

5,873,906

5,762,111

Shareholders' equity

976,200

946,670

827,759

Total Liabilities & Equity

$

6,996,214

$

6,820,576

$

6,589,870

Cost of deposits

0.61

%

0.73

%

0.54

%

Interest expense as a % of earning assets

0.65

%

0.76

%

0.67

%

Net interest income as a % of earning assets

$

61,846

3.84

%

$

61,027

3.89

%

$

60,100

4.00

%

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

Twelve Months Ended December 31, 2019

Twelve Months Ended December 31, 2018

Average

Yield/

Average

Yield/

(Amounts in thousands, except ratios)

Balance

Interest

Rate

Balance

Interest

Rate

Assets

Earning assets:

Securities:

Taxable

$

1,176,842

$

35,354

3.00

%

$

1,299,089

$

37,860

2.91

%

Nontaxable

23,122

695

3.01

31,331

1,115

3.56

Total Securities

1,199,964

36,049

3.00

1,330,420

38,975

2.93

Federal funds sold and other

investments

88,045

3,379

3.84

61,048

2,670

4.37

Loans, net

4,933,518

250,730

5.08

4,112,009

200,194

4.87

Total Earning Assets

6,221,527

290,158

4.66

5,503,477

241,839

4.39

Allowance for loan losses

(33,465

)

(29,972

)

Cash and due from banks

94,643

114,936

Premises and equipment

69,142

67,332

Intangible assets

228,042

178,287

Bank owned life insurance

124,803

124,452

Other assets

126,588

98,823

Total Assets

$

6,831,280

$

6,057,335

Liabilities and Shareholders' Equity

Interest-bearing liabilities:

Interest-bearing demand

$

1,114,334

$

4,025

0.36

%

$

978,030

$

1,883

0.19

%

Savings

516,526

2,015

0.39

457,542

811

0.18

Money market

1,164,938

10,581

0.91

1,049,900

6,069

0.58

Time deposits

1,092,516

21,776

1.99

811,741

11,684

1.44

Securities sold under agreements to repurchase

106,142

1,431

1.35

200,839

1,804

0.90

Federal funds purchased and
Federal Home Loan Bank borrowings

131,921

3,010

2.28

224,982

4,468

1.99

Other borrowings

70,939

3,367

4.75

70,658

3,164

4.48

Total Interest-Bearing Liabilities

4,197,316

46,205

1.10

3,793,692

29,883

0.79

Noninterest demand

1,641,766

1,492,451

Other liabilities

63,405

30,621

Total Liabilities

5,902,487

5,316,764

Shareholders' equity

928,793

740,571

Total Liabilities & Equity

$

6,831,280

$

6,057,335

Cost of deposits

0.69

%

0.43

%

Interest expense as a % of earning assets

0.74

%

0.54

%

Net interest income as a % of earning assets

$

243,953

3.92

%

$

211,956

3.85

%

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

December 31,

September 30,

June 30,

March 31,

December 31,

(Amounts in thousands)

2019

2019

2019

2019

2018

Customer Relationship Funding

Noninterest demand

Commercial

$

1,233,475

$

1,314,102

$

1,323,743

$

1,298,468

$

1,217,842

Retail

246,717

241,734

251,879

275,383

259,318

Public funds

85,122

65,869

65,822

73,640

68,324

Other

25,179

31,222

28,360

28,518

24,118

Total Noninterest Demand

1,590,493

1,652,927

1,669,804

1,676,009

1,569,602

Interest-bearing demand

Commercial

319,993

342,376

323,818

289,544

211,879

Retail

641,762

622,833

634,099

646,522

650,490

Public funds

219,977

150,246

166,602

164,411

151,663

Total Interest-Bearing Demand

1,181,732

1,115,455

1,124,519

1,100,477

1,014,032

Total transaction accounts

Commercial

1,553,468

1,656,478

1,647,561

1,588,012

1,429,721

Retail

888,479

864,567

885,978

921,905

909,808

Public funds

305,099

216,115

232,424

238,051

219,987

Other

25,179

31,222

28,360

28,518

24,118

Total Transaction Accounts

2,772,225

2,768,382

2,794,323

2,776,486

2,583,634

Savings

519,152

528,214

519,732

508,320

493,807

Money market

Commercial

494,803

513,477

517,041

500,649

459,380

Retail

553,075

583,917

590,320

602,378

607,837

Public funds

60,485

61,468

65,610

89,043

106,733

Total Money Market

1,108,363

1,158,862

1,172,971

1,192,070

1,173,950

Brokered time certificates

472,857

458,418

268,998

367,841

220,594

Other time certificates

712,156

759,265

785,185

760,861

705,255

1,185,013

1,217,683

1,054,183

1,128,702

925,849

Total Deposits

$

5,584,753

$

5,673,141

$

5,541,209

$

5,605,578

$

5,177,240

Customer sweep accounts

$

86,121

$

70,414

$

82,015

$

148,005

$

214,323


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

Twelve Months Ended

(Amounts in thousands, except per share data)

4Q'19

3Q'19

2Q'19

1Q'19

4Q'18

4Q'19

4Q'18

Net Income

$

27,176

$

25,605

$

23,253

$

22,705

$

15,962

$

98,739

$

67,275

Total noninterest income

16,376

13,943

13,577

12,836

12,714

56,732

50,022

Securities (gains)/losses, net

(2,539

)

847

466

9

425

(1,217

)

623

BOLI benefits on death (included in other income)

(956

)

(280

)

(956

)

(280

)

Total Adjustments to Noninterest Income

(2,539

)

(109

)

466

9

145

(2,173

)

343

Total Adjusted Noninterest Income

13,837

13,834

14,043

12,845

12,859

54,559

50,365

Total noninterest expense

38,057

38,583

41,000

43,099

49,464

160,739

162,273

Merger related charges

(634

)

(335

)

(8,034

)

(969

)

(9,681

)

Amortization of intangibles

(1,456

)

(1,456

)

(1,456

)

(1,458

)

(1,303

)

(5,826

)

(4,300

)

Business continuity expenses - hurricane events

(95

)

(95

)

Branch reductions and other expense initiatives

(121

)

(1,517

)

(208

)

(587

)

(1,846

)

(587

)

Total Adjustments to Noninterest Expense

(2,090

)

(1,672

)

(2,973

)

(2,001

)

(9,924

)

(8,736

)

(14,568

)

Total Adjusted Noninterest Expense

35,967

36,911

38,027

41,098

39,540

152,003

147,705

Income Taxes

8,103

8,452

6,909

6,409

4,930

29,873

20,259

Tax effect of adjustments

(110

)

572

874

510

2,623

1,846

3,834

Taxes and tax penalties on acquisition-related BOLI redemption

(485

)

(485

)

Effect of change in corporate tax rate on deferred tax assets

(1,135

)

(1,135

)

(248

)

Total Adjustments to Income Taxes

(110

)

(563

)

874

510

2,138

711

3,101

Adjusted Income Taxes

7,993

7,889

7,783

6,919

7,068

30,584

23,360

Adjusted Net Income

$

26,837

$

27,731

$

25,818

$

24,205

$

23,893

$

104,591

$

79,085

Earnings per diluted share, as reported

$

0.52

$

0.49

$

0.45

$

0.44

$

0.31

$

1.90

$

1.38

Adjusted Earnings per Diluted Share

0.52

0.53

0.50

0.47

0.47

2.01

1.62

Average diluted shares outstanding

52,081

51,935

51,952

52,039

51,237

52,029

48,748

Adjusted Noninterest Expense

$

35,967

$

36,911

$

38,027

$

41,098

$

39,540

$

152,003

$

147,705

Foreclosed property expense and net gain/(loss) on sale

(3

)

(262

)

174

40

(51

)

(460

)

Net Adjusted Noninterest Expense

$

35,964

$

36,649

$

38,201

$

41,138

$

39,540

$

151,952

$

147,245

Revenue

$

78,136

$

74,891

$

73,713

$

73,610

$

72,698

$

300,350

$

261,537

Total Adjustments to Revenue

(2,539

)

(109

)

466

9

145

(2,173

)

343

Impact of FTE adjustment

87

79

83

87

116

336

441

Adjusted Revenue on a fully taxable equivalent basis

$

75,684

$

74,861

$

74,262

$

73,706

$

72,959

$

298,513

$

262,321

Adjusted Efficiency Ratio

47.52

%

48.96

%

51.44

%

55.81

%

54.19

%

50.90

%

56.13

%

Average Assets

$

6,996,214

$

6,820,576

$

6,734,994

$

6,770,978

$

6,589,870

$

6,831,280

$

6,057,335

Less average goodwill and intangible assets

(226,060

)

(227,389

)

(228,706

)

(230,066

)

(213,713

)

(228,042

)

(178,287

)

Average Tangible Assets

$

6,770,154

$

6,593,187

$

6,506,288

$

6,540,912

$

6,376,157

$

6,603,238

$

5,879,048

Return on Average Assets (ROA)

1.54

%

1.49

%

1.38

%

1.36

%

0.96

%

1.45

%

1.11

%

Impact of removing average intangible assets and related amortization

0.12

0.12

0.12

0.12

0.09

0.11

0.09

Return on Average Tangible Assets (ROTA)

1.66

1.61

1.50

1.48

1.05

1.56

1.20

Impact of other adjustments for Adjusted Net Income

(0.09

)

0.06

0.09

0.02

0.44

0.02

0.15

Adjusted Return on Average Tangible Assets

1.57

1.67

1.59

1.50

1.49

1.58

1.35

Average Shareholders' Equity

$

976,200

$

946,670

$

911,479

$

879,564

$

827,759

$

928,793

$

740,571

Less average goodwill and intangible assets

(226,060

)

(227,389

)

(228,706

)

(230,066

)

(213,713

)

(228,042

)

(178,287

)

Average Tangible Equity

$

750,140

$

719,281

$

682,773

$

649,498

$

614,046

$

700,751

$

562,284

Return on Average Shareholders' Equity

11.04

%

10.73

%

10.23

%

10.47

%

7.65

%

10.63

%

9.08

%

Impact of removing average intangible assets and related amortization

3.91

4.00

4.07

4.39

3.29

4.09

3.46

Return on Average Tangible Common Equity (ROTCE)

14.95

14.73

14.30

14.86

10.94

14.72

12.54

Impact of other adjustments for Adjusted Net Income

(0.76

)

0.57

0.87

0.25

4.50

0.21

1.52

Adjusted Return on Average Tangible Common Equity

14.19

15.30

15.17

15.11

15.44

14.93

14.06

Loan interest income excluding accretion on acquired loans

$

59,515

$

59,279

$

58,169

$

58,397

$

55,470

$

235,359

$

188,865

Accretion on acquired loans

3,407

3,859

4,166

3,938

4,089

15,371

11,329

Loan interest income1

$

62,922

$

63,138

$

62,335

$

62,335

$

59,559

$

250,730

$

200,194

1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.

GAAP TO NON-GAAP RECONCILIATION

(Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

Quarterly Trends

Twelve Months Ended

(Amounts in thousands, except per share data)

4Q'19

3Q'19

2Q'19

1Q'19

4Q'18

4Q'19

4Q'18

Yield on loans excluding accretion on acquired loans

4.63

%

4.76

%

4.82

%

4.89

%

4.77

%

4.77

%

4.59

%

Impact of accretion on acquired loans

0.26

0.30

0.34

0.33

0.35

0.31

0.28

Yield on loans

4.89

5.06

5.16

5.22

5.12

5.08

4.87

Net interest income excluding accretion on acquired loans

$

58,439

$

57,168

$

56,053

$

56,923

$

56,011

$

228,582

$

200,627

Accretion on acquired loans

3,407

3,859

4,166

3,938

4,089

15,371

11,329

Net Interest Income1

$

61,846

$

61,027

$

60,219

$

60,861

$

60,100

$

243,953

$

211,956

Net interest margin excluding accretion on acquired loans

3.63

%

3.64

%

3.67

%

3.76

%

3.73

%

3.67

%

3.65

%

Impact of accretion on acquired loans

0.21

0.25

0.27

0.26

0.27

0.25

0.20

Net Interest Margin

3.84

3.89

3.94

4.02

4.00

3.92

3.85

Security interest income excluding tax equivalent adjustment

$

8,630

$

8,933

$

9,076

$

9,270

$

9,728

$

35,909

$

38,743

Tax equivalent adjustment on securities

32

33

36

39

52

140

232

Security interest income1

$

8,662

$

8,966

$

9,112

$

9,309

$

9,780

$

36,049

$

38,975

Loan interest income excluding tax equivalent adjustment

$

62,867

$

63,091

$

62,287

$

62,287

$

59,495

$

250,532

$

199,984

Tax equivalent adjustment on loans

55

47

48

48

64

198

210

Loan interest income1

$

62,922

$

63,138

$

62,335

$

62,335

$

59,559

$

250,730

$

200,194

Net interest income excluding tax equivalent adjustment

$

61,759

$

60,947

$

60,135

$

60,774

$

59,984

$

243,615

$

211,514

Tax equivalent adjustment on securities

32

33

36

39

52

140

232

Tax equivalent adjustment on loans

55

47

48

48

64

198

210

Net Interest Income1

$

61,846

$

61,027

$

60,219

$

60,861

$

60,100

$

243,953

$

211,956

1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.

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