Seacoast Reports Fourth Quarter and Full-Year 2017 Results

Full-Year 2017 Net Income Increased 47% to $42.9 Million

Achieved 19% Growth in Year-Over-Year Tangible Book Value per Share

Fourth Quarter Net Income Increased 21% Over the Prior Year Quarter to $13.0 Million

STUART, Fla., Jan. 25, 2018 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida (“Seacoast” or “the Company”) (NASDAQ:SBCF) today reported net income of $13.0 million, or $0.28 per share for the fourth quarter of 2017, a 21% or $2.3 million increase from the fourth quarter of 2016. The Company reported fourth quarter adjusted net income1 of $17.3 million, or $0.37 per share, representing a 46% or $5.5 million increase from the fourth quarter of 2016. Full-year 2017 net income was $42.9 million, or $0.99 per share, a 47% or $13.7 million increase compared to prior year results. Full-year 2017 adjusted net income1 was $55.3 million, or $1.28 per share, a 42% or $16.3 million increase compared to prior year results.

For the fourth quarter 2017, return on average tangible assets was 0.97%, return on average tangible shareholders’ equity was 10.7%, and the efficiency ratio was 64.0%, compared to 1.12%, 12.5% and 58.9%, respectively, in the prior quarter and 1.00%, 12.5%, and 62.4%, respectively, in the fourth quarter of 2016. Adjusted return on average tangible assets1 was 1.23%, adjusted return on average tangible shareholders’ equity1 was 13.5%, and the adjusted efficiency ratio1 was 52.6%, compared to 1.16%, 12.8%, and 57.7%, respectively, in the prior quarter, and 1.05%, 13.1%, and 60.8%, respectively, in the fourth quarter of 2016.

Dennis S. Hudson, III, Seacoast’s Chairman and CEO, said, “Seacoast’s 2017 performance demonstrated our ability to consistently grow our banking franchise through both organic initiatives and prudent acquisitions, while simultaneously delivering record shareholder returns, highlighted by a 23% year-over-year increase in adjusted earnings per share. As we navigated the near-term impact of Hurricane Irma, we continued to drive earnings expansion while retaining the quality of our loan portfolio and investing to support our long-term growth objectives.”

Hudson added, “We expect that the recently passed Tax Cuts and Jobs Act of 2017 will further strengthen economic fundamentals across Florida. Our expansion into South Florida, Orlando and Tampa positions Seacoast to capture this expected economic growth in the coming year as we provide a compelling value proposition for consumers and business customers living and operating in these markets.”

Hudson concluded, “The continued execution of our balanced growth strategy, combined with the additional financial resources provided by the tax cut, will enable Seacoast to accelerate investments in our franchise, deliver incremental value for all stakeholders, and further advance our momentum toward our Vision 2020 objectives, which we introduced at our investor day last year.”

Charles M. Shaffer, Seacoast’s Chief Financial Officer, said, “We have been successful in allocating capital throughout the year into accretive opportunities, offsetting the initial dilution from our share issuance in February 2017. We have increased our tangible book value per share from $9.37 per share at the start of the year to $11.15 at year end, representing 19% growth in tangible capital per share. We are exiting the year with a ratio of tangible common equity to tangible assets of 9.4% and a loan to deposit ratio of 83%, providing both capital and low-cost funding for accretive growth in 2018. Our low cost of funding and asset sensitive balance sheet position us well for continued earnings growth in 2018.”

Update on Vision 2020 and the Tax Cuts and Jobs Act of 2017

We are confident in our ability to achieve our Vision 2020 targets announced at investor day in February of 2017. The enactment of the Tax Cuts and Jobs Act of 2017 on December 22, 2017 should have a significant positive impact on the United States economy and growth in our Florida markets. This clearly creates an opportunity for us to accelerate the achievement of our Vision 2020 objectives, through increased growth and appropriate investments. As the impact of this new legislation on our operating markets materializes, we will provide further updates on our progress and updated objectives.

Vision 2020 Targets
Return on Tangible Assets1.30%+
Return on Tangible Common Equity16%+
Efficiency RatioBelow 50%

Notable Items Affecting Fourth Quarter 2017 Results; These Items are Excluded from the Presentation of Adjusted Results

  • Additional income tax expense of $8.6 million was recorded to write down the Company’s net deferred tax asset as a result of the Tax Cuts and Jobs Act of 2017. This estimate is subject to additional procedures which could result in further adjustments in future periods.
  • A $15.2 million gain on the sale of shares of Visa Class B stock was recorded in the fourth quarter. These shares were purchased in early 2017.
  • Merger and acquisition related charges associated with the purchase of Palm Beach Community Bank and NorthStar Banking Corporation totaled $6.8 million. These charges primarily represent change in control payments, legal and investment banking fees, and technology contract termination fees associated with the two acquisitions.

Update on Hurricane Impacts

  • The Company recorded a charge-off of $0.6 million related to a customer with a Caribbean export business which was severely impacted by the fall season hurricanes.
  • Loan pipelines and production across all business lines were disrupted by the storms, the result of business interruption over multiple weeks in the fourth quarter.

Fourth Quarter 2017 Financial Highlights

Income Statement

  • Net income was $13.0 million, or $0.28 per average common diluted share, compared to $14.2 million or $0.32 for the prior quarter and $10.8 million or $0.28 for the fourth quarter of 2016. For the year ended December 31, 2017, net income was $42.9 million, or $0.99 per average common diluted share, compared to $29.2 million or $0.78 for the year ended December 31, 2016. Adjusted net income1 was $17.3 million, or $0.37 per average common diluted share, compared to $15.1 million or $0.35 for the prior quarter and $11.8 million or $0.31 for the fourth quarter of 2016. For the year ended December 31, 2017, adjusted net income1 was $55.3 million, or $1.28 per average common diluted share, compared to $39.1 million or $1.04 for the year ended December 31, 2016.
  • Net revenues were $74.9 million, an increase of $17.7 million or 31% compared to the prior quarter, and an increase of $27.5 million or 58% from the fourth quarter of 2016. For the year ended December 31, 2017, net revenues were $234.8 million, an increase of $57.4 million or 32% compared to the year ended December 31, 2016. Adjusted revenues1 were $59.6 million, an increase of $2.4 million, or 4%, from the prior quarter and an increase of $12.3 million, or 26% from the fourth quarter of 2016. For the year ended December 31, 2017, adjusted revenues1 were $219.5 million, an increase of $43.0 million or 24% compared to the year ended December 31, 2016.
  • Net interest income totaled $48.2 million, an increase of $2.5 million or 5% from the prior quarter and an increase of $10.8 million or 29% from the fourth quarter of 2016. For the year ended December 31, 2017, net interest income totaled $176.3 million, an increase of $36.7 million or 26% compared to the year ended December 31, 2016.
  • Noninterest income totaled $26.6 million, an increase of $15.2 million or 133% compared to the prior quarter and an increase of $16.7 million or 168% from the fourth quarter of 2016. For the year ended December 31, 2017, noninterest income totaled $58.5 million, an increase of $20.7 million or 55% compared to the year ended December 31, 2016. Adjusted noninterest income1 totaled $11.4 million for the quarter, in line with the prior quarter and an increase of $1.5 million or 15% from the fourth quarter of 2016. For the year ended December 31, 2017, adjusted noninterest income1 totaled $43.2 million, an increase of $6.3 million or 17% compared to the year ended December 31, 2016. During the quarter the Company sold $28.4 million of residential mortgages originated in prior quarters at a $477 thousand gross premium, recorded as mortgage banking fee income. Brokerage commissions and fees were impacted by a transition during the quarter to a new broker-dealer, and by the effects of Hurricane Irma. Looking forward, we expect the technology solution provided by the new broker-dealer to provide further opportunities for growth. A focus on spend stimulation in the quarter drove additional growth in debit interchange income.
  • Net interest margin was 3.71% in the current quarter compared to 3.74% in the prior quarter and 3.56% in the fourth quarter of 2016. For the year ended December 31, 2017, the net interest margin was 3.73% compared to 3.63% for the year ended December 31, 2016. The net interest margin was affected this quarter when compared to the prior quarter by higher rates on deposits and lower non-cash related loan accretion.
  • The provision for loan losses was $2.3 million compared to $0.7 million in the prior quarter and $1.0 million in the fourth quarter of 2016. The increase of $1.6 million in the current quarter primarily reflects the effect of higher charge-offs. As discussed in the hurricane update above, $0.6 million of the current quarter charge-offs related to a single borrower whose business exporting to the Caribbean was significantly impacted by the storms. For the year ended December 31, 2017, the provision for loan losses was $5.6 million compared to $2.4 million for the year ended December 31, 2016, primarily the result of organic growth in the portfolio.
  • Noninterest expense was $39.2 million compared to $34.4 million in the prior quarter and $30.3 million in the fourth quarter of 2016. For the year ended December 31, 2017, noninterest expense was $150.0 million compared to $130.9 million in 2016. Adjusted noninterest expense1 was $31.4 million compared to $32.8 million in the prior quarter, and $28.9 million in the fourth quarter of 2016. For the year ended December 31, 2017, adjusted noninterest expense1 was $129.0 million compared to $114.2 million in 2016.
    • The current quarter’s noninterest expense includes an adjustment of $2.0 million of performance related incentives, and merger and acquisition related charges totaling $6.8 million. The merger and acquisition related charges primarily represent change in control payments, legal fees and investment banking, and technology contract termination fees associated with the two acquisitions.
  • Seacoast recorded a $20.4 million income tax provision in the current quarter, compared to $7.9 million in the prior quarter and $5.3 million in the fourth quarter of 2016. For the year ended December 31, 2017, the income tax provision was $36.3 million, compared to $14.9 million in 2016. This quarter’s tax provisioning included an $8.6 million charge for the write down of the company’s net deferred tax asset associated with the Tax Cuts and Jobs Act of 2017.
  • Fourth quarter 2017 adjusted revenues1 increased 4% compared to prior quarter, while adjusted noninterest expense1 decreased 4%, providing 8% operating leverage. Full-year 2017 adjusted revenues1 increased 24% compared to prior year results, while adjusted noninterest expense1 increased 13%, providing 11% operating leverage.
  • The efficiency ratio was 64.0% compared to 58.9% in the prior quarter and 62.4% in the fourth quarter of 2016. For the year ended December 31, 2017, the efficiency ratio was 66.7% compared to 72.1% in 2016. The adjusted efficiency ratio1 decreased to 52.6% compared to 57.7% in the prior quarter and 60.8% in the fourth quarter of 2016. For the year ended December 31, 2017 the adjusted efficiency ratio decreased to 57.0% compared to 64.6% in 2016.

Balance Sheet

  • At December 31, 2017, the Company had total assets of $5.8 billion and total shareholders' equity of $689.7 million. Book value per share was $14.70 and tangible book value per share was $11.15, compared to $13.66 and $10.95, respectively, at September 30, 2017 and $11.45 and $9.37, respectively, at December 31, 2016.
  • Net loans totaled $3.8 billion at December 31, 2017, an increase of $432 million or 13% compared to September 30, 2017, and an increase of $934 million or 33% from December 31, 2016. Excluding acquisitions, loans increased $278 million or 10% from December 31, 2016.
    • During the fourth quarter, commercial originations were $132 million, consumer and small business originations were $80 million, and closed residential loans retained were $75.6 million.
    • We continue to prudently manage CRE exposure. At 61% and 209% of total risk-based capital respectively, construction and land development and commercial real estate loan concentrations remain well below regulatory guidance.
  • Pipelines (loans in underwriting and approval or approved and not yet closed) at year end continued to reflect the lingering effects of the fall season hurricanes. At December 31, 2017, pipelines were $119 million in commercial, $49 million in mortgage, and $39 million in consumer and small business.
    • Commercial pipelines decreased by $36 million, or 23%, from prior quarter and have increased $30 million, or 34%, over year-ago levels.
    • Mortgage pipelines were lower by $15 million, or 24%, from prior quarter and by $24 million, or 33%, compared to year-ago levels.
    • Consumer and small business decreased from prior quarter by $8 million, or 17%, and were lower than year-ago levels by $7 million, or 16%.
  • Total deposits were $4.6 billion as of December 31, 2017, an increase of $480 million, or 12%, compared to September 30, 2017 and an increase of $1.1 billion, or 30%, from December 31, 2016.
    • During 2017, interest bearing deposits (interest bearing demand, savings and money markets deposits) increased $393 million, or 19%, to $2.4 billion, noninterest bearing demand deposits increased $252 million, or 22%, to $1.4 billion, and CDs increased $424 million, or 121%, to $776 million.
    • Excluding acquired deposits, noninterest bearing deposits increased 7% and total deposits increased 4% compared to December 31, 2016.
    • The Company’s balance sheet continues to be primarily core deposit funded. Core customer funding was $4.0 billion at December 31, 2017, compared to $3.6 billion at September 30, 2017 and $3.4 billion at December 31, 2016.
    • Organic deposits grew 2% compared to prior quarter, with annualized quarterly growth of 10%.
    • Overall cost of deposits in the fourth quarter was 0.29%, reflecting the significant value of the deposit franchise.
  • Fourth quarter return on average assets (ROA) was 0.91%, compared to 1.06% in the prior quarter and 0.94% from the fourth quarter of 2016. Return on average tangible assets (ROTA) was 0.97%, compared to 1.12% in the prior quarter and 1.00% in the fourth quarter of 2016. Adjusted ROTA1 was 1.23% compared to 1.16% in the prior quarter and 1.05% in the fourth quarter of 2016.

Capital

  • The common equity tier 1 capital ratio (CET1) was 12.0%, total capital ratio was 14.2% and the tier 1 leverage ratio was 10.6% at December 31, 2017.
  • Tangible common equity to tangible assets was 9.4% at December 31, 2017, compared to 9.1% at September 30, 2017, and 7.7% at December 31, 2016.

Asset Quality

  • Nonperforming loans to total loans outstanding was 0.47% at December 31, 2017, 0.42% at September 30, 2017, and 0.63% at December 31, 2016.
  • Nonperforming assets to total assets was 0.44% at December 31, 2017, 0.40% at September 30, 2017 and 0.60% at December 31, 2016. Of the $25.7 million in nonperforming assets, $4 million related to five closed branch properties held as REO.
  • The ratio of allowance for loan losses to total loans was 0.71% at December 31, 2017, 0.77% at September 30, 2017, and 0.81% at December 31, 2016. The ratio of allowance for loan losses to non-acquired loans was 0.90% at December 31, 2017, 0.91% at September 30, 2017, and 0.96% at December 31, 2016. The ratio of allowance for loan losses to acquired loans was 0.08% at December 31, 2017, 0.07% at September 30, 2017, and 0.03% at December 31, 2016.


FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)4Q173Q172Q171Q174Q16
Selected Balance Sheet Data (at period end):
Total Assets$5,810,129 $ 5,340,299 $ 5,281,295 $ 4,769,775 $ 4,680,932
Gross Loans 3,817,377 3,384,991 3,330,075 2,973,759 2,879,536
Total Deposits 4,592,720 4,112,600 3,975,458 3,678,645 3,523,245
Performance Measures:
Net Income $13,047 $14,216 $7,676 $7,926 $10,771
Net Interest Margin 3.71% 3.74 % 3.84 % 3.63 % 3.56 %
Average Diluted Shares Outstanding (000) 46,673 43,792 43,556 39,499 38,252
Diluted Earnings Per Share (EPS)$ 0.28 $ 0.32 $ 0.18 $ 0.20 $ 0.28
Return on (annualized):
Average Assets (ROA) 0.91% 1.06% 0.61% 0.68% 0.94%
Average Tangible Common Equity (ROTCE) 10.7 12.5 7.3 8.8 12.5
Efficiency Ratio 64.0 58.9 73.9 71.1 62.4
Adjusted Operating Measures 1:
Adjusted Net Income$17,261 $15,145 $12,665 $10,270 $11,803
Adjusted Diluted EPS 0.37 0.35 0.29 0.26 0.31
Adjusted ROTA 1.23% 1.16% 1.02% 0.90% 1.05%
Adjusted ROTCE 13.5 12.8 11.2 10.7 13.1
Adjusted Efficiency Ratio 52.6 57.7 61.2 64.7 60.8
Adjusted Noninterest Expenses as a
Percentage of Average Tangible Assets
2.24 2.50 2.73 2.71 2.56
Other Data
Market Capitalization2$1,182,796 $1,039,506 $1,047,361 $976,368 $838,762
Full Time Equivalent Employees 805 762 759 743 725
Number of ATMs 85 74 76 76 77
Full service banking offices 51 45 45 46 47
Registered online users 83,881 78,880 75,394 71,385 67,243
Registered mobile devices 62,516 58,032 55,013 50,729 47,131

1 Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures”
Effective in the first quarter of 2017, adjusted net income and adjusted noninterest expense exclude the effect of amortization of acquisition-related intangibles. Prior periods have been revised to conform with the current period presentation.
2 Common shares outstanding multiplied by closing bid price on last day of each period.

Fourth Quarter and 2017 Strategic Highlights

Vision 2020, which we rolled out in the first quarter of last year, connects innovation and investments over the coming years to desired changes in our operating model, and to enhanced digital customer experience and shareholder returns.

Our operational execution during 2017 has enabled us to remain on track to achieve our Vision 2020 objectives. In 2018, we’ll invest a portion of the tax savings associated with the Tax Cuts and Jobs Act of 2017 to accelerate the achievement of these objectives.

Modernizing How We Sell

  • This year we continued our efforts to deepen customer relationships outside of our banking centers. The number of deposit accounts opened through our website and 24/7 customer support center grew by 12% year over year. Our Customer support center also originated $32.7 million in consumer and small business loans.
  • Our Commercial Banking and Operations teams partnered to increase efficiency across the loan origination process with a focus on optimizing technology, improving cycle time, and enhancing vendor partnerships. This effort will continue well into 2018.

Lowering Our Cost to Serve

  • Customer adoption of more convenient digital channels continues to grow. This summer, non-teller transactions surpassed teller transactions and 41% of checks are now deposited outside of the banking center network, compared to 37% in December of 2016. We expect this shift in customer preference to continue, requiring continued focus on building a digitally integrated business model.

Driving Improvements in How Our Business Operates

  • This year we successfully renegotiated our agreement with a key technology and digital services provider. The agreement expands digital banking capabilities, improves service level agreements, and increases our ability to scale.
  • In November, we consolidated our customer support center in Stuart, migrating all customer support operations to our Orlando location. The modernized, expanded site supports our 24/7 customer service model and our growth strategy.

Scaling and Evolving Our Culture

  • In the first quarter of 2018, a Chief Technology Officer was added to the executive team.
  • We also on-boarded key talent in the areas of data analysis, digital marketing, business-to-business marketing and compliance. These important additions to the Seacoast team help position us for future growth.

OTHER INFORMATION

Conference Call Information
Seacoast will host a conference call on Friday, January 26, 2018 at 10:00 a.m. (Eastern Time) to discuss the earnings results. Investors may call in (toll-free) by dialing (888) 517-2458 (passcode: 6006 509). Slides will be used during the conference call and may be accessed at Seacoast's website at SeacoastBanking.com by selecting "Presentations" under the heading "Investor Services." A replay of the call will be available for one month, beginning late afternoon of January 26, 2018 by dialing (888) 843-7419 and using passcode: 6006 509.

Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast's website at SeacoastBanking.com. The link is located in the subsection "Presentations" under the heading "Investor Services." Beginning the afternoon of January 26, 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 $5.8 billion in assets and $4.6 billion in deposits as of December 31, 2017. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, 51 traditional branches of its locally-branded wholly-owned subsidiary bank, Seacoast Bank, and five commercial banking centers. Offices stretch from Ft. 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 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, estimates and intentions, 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.

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", "point to," "project," "could," "intend" 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, 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; 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 of mergers and acquisitions, include, without limitation: 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 merger 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 disruption, 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, 2016, 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 http://www.sec.gov.

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


FINANCIAL HIGHLIGHTS (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
(Dollars in thousands, except per share data)Three Months Ended Twelve Months Ended
December 31, September 30, June 30, March 31, December 31, December 31, December 31,
2017 2017 2017 2017 2016 2017 2016
Summary of Earnings
Net income$ 13,047 $ 14,216 $ 7,676 $ 7,926 $ 10,771 $ 42,865 $ 29,202
Net interest income (1) 48,402 45,903 44,320 38,377 37,628 177,002 140,514
Net interest margin (1), (2) 3.71 % 3.74% 3.84% 3.63% 3.56% 3.73% 3.63%
Performance Ratios
Return on average assets-GAAP basis (2) 0.91 % 1.06% 0.61% 0.68% 0.94% 0.82% 0.69%
Return on average tangible assets (2),(3) 0.97 1.12 0.66 0.74 1.00 0.88 0.75
Adjusted return on average tangible assets (2), (3), (5) 1.23 1.16 1.02 0.90 1.05 1.09 0.94
Return on average shareholders' equity-GAAP basis (2) 7.87 9.59 5.43 6.89 9.80 7.51 7.06
Return on average tangible shareholders' equity-GAAP basis (2),(3) 10.69 12.45 7.25 8.77 12.51 9.90 8.87
Adjusted return on average tangible common equity (2), (3), (5) 13.49 12.80 11.22 10.74 13.14 12.17 11.25
Efficiency ratio (4) 63.95 58.93 73.90 71.08 62.36 66.68 72.13
Adjusted efficiency ratio (5) 52.55 57.69 61.20 64.65 60.84 57.02 64.60
Noninterest income to total revenue 35.49 20.06 19.16 20.61 20.96 24.88 21.14
Average equity to average assets 11.50 11.06 11.17 9.93 9.56 10.96 9.85
Per Share Data
Net income diluted-GAAP basis$ 0.28 $ 0.32 $ 0.18 $ 0.20 $ 0.28 $ 0.99 $ 0.78
Net income basic-GAAP basis 0.29 0.33 0.18 0.20 0.29 1.01 0.79
Adjusted earnings (5) 0.37 0.35 0.29 0.26 0.31 1.28 1.04
Book value per share common 14.70 13.66 13.29 12.34 11.45 14.70 11.45
Tangible book value per share 11.15 10.95 10.55 10.41 9.37 11.15 9.37
Cash dividends declared 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(1) Calculated on a fully taxable equivalent basis using amortized cost.
(2) These ratios are stated on an annualized basis and are not necessarily indicative of future periods.
(3) The Company defines tangible assets as total assets less intangible assets,
and tangible common equity as total shareholders' equity less intangible assets.
(4) Defined as (noninterest expense less 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).
(5) Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures."

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
QUARTER YTD
2017 2016 December 31, December 31,
(Dollars in thousands, except share and per share data)FourthThirdSecondFirst Fourth 2017 2016
Interest on securities:
Taxable$ 9,153 $ 8,823 $ 8,379$ 8,087 $ 6,880 $ 34,442 $ 26,133
Nontaxable 231 189 206 287 287 913 1,036
Interest and fees on loans 43,322 40,403 38,209 31,891 32,007 153,825 119,217
Interest on federal funds sold and other investments 638 664 604 510 517 2,416 1,669
Total Interest Income 53,344 50,079 47,398 40,775 39,691 191,596 148,055
Interest on deposits 1,246 930 854 624 622 3,654 2,593
Interest on time certificates 2,032 1,266 814 566 598 4,678 2,074
Interest on borrowed money 1,840 2,134 1,574 1,420 1,046 6,968 3,800
Total Interest Expense 5,118 4,330 3,242 2,610 2,266 15,300 8,467
Net Interest Income 48,226 45,749 44,156 38,165 37,425 176,296 139,588
Provision for loan losses 2,263 680 1,401 1,304 1,000 5,648 2,411
Net Interest Income After Provision for Loan Losses 45,963 45,069 42,755 36,861 36,425 170,648 137,177
Noninterest income:
Service charges on deposit accounts 2,566 2,626 2,435 2,422 2,612 10,049 9,669
Trust fees 941 967 917 880 969 3,705 3,433
Mortgage banking fees 1,487 2,138 1,272 1,552 1,616 6,449 5,864
Brokerage commissions and fees 273 351 351 377 480 1,352 2,044
Marine finance fees 313 137 326 134 115 910 673
Interchange income 2,836 2,582 2,671 2,494 2,334 10,583 9,227
Other deposit based EFT fees 111 100 114 140 125 465 477
BOLI income 1,100 836 757 733 611 3,426 2,213
Other 1,750 1,744 1,624 1,173 1,060 6,291 3,827
11,377 11,481 10,467 9,905 9,922 43,230 37,427
Gain on sale of VISA stock 15,153 0 0 0 0 15,153 0
Securities gains/(losses), net 112 (47) 21 0 7 86 368
Total Noninterest Income 26,642 11,434 10,488 9,905 9,929 58,469 37,795
Noninterest expenses:
Salaries and wages 16,321 15,627 18,375 15,369 12,476 65,692 54,096
Employee benefits 2,812 2,917 2,935 3,068 2,475 11,732 9,903
Outsourced data processing costs 4,160 3,231 3,456 3,269 3,076 14,116 13,516
Telephone / data lines 538 573 648 532 502 2,291 2,108
Occupancy 3,265 2,447 4,421 3,157 2,830 13,290 13,122
Furniture and equipment 1,806 1,191 1,679 1,391 1,211 6,067 4,720
Marketing 1,490 1,298 1,074 922 847 4,784 3,633
Legal and professional fees 3,054 2,560 3,276 2,132 2,370 11,022 9,596
FDIC assessments 558 548 650 570 661 2,326 2,365
Amortization of intangibles 964 839 839 719 719 3,361 2,486
Asset dispositions expense 105 117 136 53 84 411 553
Net loss/(gain) on other real estate owned and repossessed assets (112) (414) 161 (346) (161) (711) (509)
Early redemption cost for Federal Home Loan Bank advances 0 0 0 0 0 0 1,777
Other 4,223 3,427 3,975 3,910 3,207 15,535 13,515
Total Noninterest Expenses 39,184 34,361 41,625 34,746 30,297 149,916 130,881
Income Before Income Taxes 33,421 22,142 11,618 12,020 16,057 79,201 44,091
Income taxes 20,374 7,926 3,942 4,094 5,286 36,336 14,889
Net Income$ 13,047 $ 14,216 $ 7,676$ 7,926 $ 10,771 $ 42,865 $ 29,202
Per share of common stock:
Net income diluted$ 0.28 $ 0.32 $ 0.18$ 0.20 $ 0.28 $ 0.99 $ 0.78
Net income basic 0.29 0.33 0.18 0.20 0.29 1.01 0.79
Cash dividends declared 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Average diluted shares outstanding 46,672,538 43,792,108 43,556,285 39,498,835 38,252,351 43,350,314 37,508,046
Average basic shares outstanding 45,541,099 43,151,248 42,841,152 38,839,284 37,603,789 42,613,086 36,872,007

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
December 31,September 30,June 30,March 31,December 31,
(Dollars in thousands, except share data) 2017 2017 2017 2017 2016
Assets
Cash and due from banks$ 104,039 $ 114,621 88,133 $ 133,923 $ 82,520
Interest bearing deposits with other banks 5,465 10,657 20,064 10,914 27,124
Total Cash and Cash Equivalents 109,504 125,278 108,197 144,837 109,644
Time deposits with other banks 12,553 14,591 16,426 0 0
Securities:
Available for sale (at fair value) 955,804 996,799 1,016,744 909,275 950,503
Held to maturity (at amortized cost) 416,863 374,773 397,096 379,657 372,498
Total Securities 1,372,667 1,371,572 1,413,840 1,288,932 1,323,001
Loans held for sale 24,306 29,447 22,262 16,326 15,332
Loans 3,817,377 3,384,991 3,330,075 2,973,759 2,879,536
Less: Allowance for loan losses (27,122) (26,232) (26,000) (24,562) (23,400)
Net Loans 3,790,255 3,358,759 3,304,075 2,949,197 2,856,136
Bank premises and equipment, net 66,883 57,092 56,765 58,611 58,684
Other real estate owned 7,640 7,142 8,497 7,885 9,949
Goodwill 147,578 101,747 101,739 64,649 64,649
Other intangible assets, net 19,099 16,102 16,941 13,853 14,572
Bank owned life insurance 123,981 118,762 88,003 85,237 84,580
Net deferred tax assets 25,417 43,951 52,195 55,834 60,818
Other assets 110,246 95,856 92,355 84,414 83,567
Total Assets$ 5,810,129 $ 5,340,299 $ 5,281,295 $ 4,769,775 $ 4,680,932
Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest demand$ 1,400,227 $ 1,284,118 $ 1,308,458 $ 1,225,124 $ 1,148,309
Interest-bearing demand 1,050,755 935,097 934,861 870,457 873,727
Savings 434,346 379,499 376,825 363,140 346,662
Money market 931,458 870,788 861,119 821,606 802,697
Other time certificates 202,430 155,027 155,265 153,840 159,887
Brokered time certificates 217,385 281,551 149,270 66,741 7,342
Time certificates of $100,000 or more 356,119 206,520 189,660 177,737 184,621
Total Deposits 4,592,720 4,112,600 3,975,458 3,678,645 3,523,245
Securities sold under agreements to repurchase 216,094 142,153 167,558 183,107 204,202
Federal Home Loan Bank borrowings 211,000 389,000 395,000 302,000 415,000
Subordinated debt 70,521 70,451 70,381 70,311 70,241
Other liabilities 30,130 31,654 95,521 33,218 32,847
Total Liabilities 5,120,465 4,745,858 4,703,918 4,267,281 4,245,535
Shareholders' Equity
Common stock 4,693 4,351 4,339 4,075 3,802
Additional paid in capital 661,632 576,825 574,842 510,806 454,001
Accumulated earnings/(deficit) 29,208 16,161 1,945 (5,731) (13,657)
Treasury stock (2,359) (1,730) (1,768) (1,172) (1,236)
693,174 595,607 579,358 507,978 442,910
Accumulated other comprehensive income/(loss), net (3,510) (1,166) (1,981) (5,484) (7,513)
Total Shareholders' Equity 689,664 594,441 577,377 502,494 435,397
Total Liabilities & Shareholders' Equity$ 5,810,129 $ 5,340,299 $ 5,281,295 $ 4,769,775 $ 4,680,932
Common Shares Outstanding 46,917,735 43,512,179 43,458,973 40,715,938 38,021,835
Note: The balance sheet at December 31, 2016 has been derived from the audited financial statements at that date.

CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
QUARTERS
2017 2016
(Dollars in thousands)Fourth Third Second First Fourth
Credit Analysis
Net charge-offs (recoveries) - non-acquired loans$ 1,475 $ 612 $ 304 $ 211 $ 87
Net charge-offs (recoveries) - acquired loans (139) (333) (405) (118) 141
Total net charge-offs (recoveries)$ 1,336 $ 279 $ (101) $ 93 $ 228
TDR valuation adjustments$ 37 $ 169 $ 64 $ 49 $ 55
Net charge-offs (recoveries) to average loans - non-acquired loans 0.16 % 0.07 % 0.04 % 0.03 % 0.01 %
Net charge-offs (recoveries) to average loans - acquired loans (0.02) (0.04) (0.05) (0.02) 0.02
Total net charge-offs (recoveries) to average loans 0.14 0.03 (0.01) 0.01 0.03
Loan loss provision (recapture) - non-acquired loans$ 2,053 $ 795 $ 1,690 $ 1,504 $ 1,161
Loan loss provision (recapture) - acquired loans 210 (115) (289) (200) (161)
Total loan loss provision $ 2,263 $ 680 $ 1,401 $ 1,304 $ 1,000
Allowance for loan losses - non-acquired loans$ 26,363 $ 25,822 $ 25,809 $ 24,487 $ 23,243
Allowance for loan losses - acquired loans 759 410 191 75 157
Total allowance for loan losses$ 27,122 $ 26,232 $ 26,000 $ 24,562 $ 23,400
Non-acquired loans at end of period $ 2,922,609 $ 2,837,490 $ 2,722,866 $ 2,572,549 $ 2,425,850
Purchased noncredit impaired loans at end of period 877,351 537,057 594,077 388,228 440,690
Purchased credit impaired loans at end of period 17,417 10,443 13,132 12,982 12,996
Total loans$ 3,817,377 $ 3,384,990 $ 3,330,075 $ 2,973,759 $ 2,879,536
Non-acquired loans allowance for loan losses to non-acquired loans at end of period 0.90 % 0.91 % 0.95 % 0.95 % 0.96 %
Total allowance for loan losses to total loans at end of period 0.71 0.77 0.78 0.83 0.81
Acquired loans allowance for loan losses to acquired loans at end of period 0.08 0.07 0.03 0.02 0.03
Discount for credit losses to acquired loans at end of period 2.33 2.77 3.37 4.25 4.18
End of Period
Nonperforming loans - non-acquired loans$ 11,088 $ 10,877 $ 10,541 $ 10,557 $ 11,023
Nonperforming loans - acquired loans 6,955 3,498 6,632 6,428 7,048
Other real estate owned - non-acquired 2,246 1,748 1,748 2,790 3,041
Other real estate owned - acquired 1,632 1,632 1,645 1,203 1,203
Bank branches closed included in other real estate owned 3,762 3,762 5,104 3,892 5,705
Total nonperforming assets$ 25,683 $ 21,517 $ 25,670 $ 24,870 $ 28,020
Restructured loans (accruing)$ 15,559 $ 16,181 $ 16,941 $ 18,125 $ 17,711
Nonperforming loans to loans at end of period - non-acquired loans 0.38 % 0.38 % 0.39 % 0.41 % 0.45 %
Nonperforming loans to loans at end of period - acquired loans 0.78 0.64 1.09 1.60 1.55
Allowance for loan losses to nonperforming loans - non-acquired loans 237.76 237.40 244.84 231.95 210.86
Total nonperforming loans to loans at end of period 0.47 0.42 0.52 0.57 0.63
Nonperforming assets to total assets - non-acquired 0.29 % 0.31 % 0.33 % 0.36 % 0.42 %
Nonperforming assets to total assets - acquired 0.15 0.10 0.16 0.16 0.18
Total nonperforming assets to total assets 0.44 0.40 0.49 0.52 0.60
Average Balances
Total average assets$ 5,716,230 $ 5,316,119 $ 5,082,002 $ 4,699,745 $ 4,572,188
Less: Intangible assets 149,432 118,364 114,563 78,878 79,620
Total average tangible assets$ 5,566,798 $ 5,197,755 $ 4,967,439 $ 4,620,867 $ 4,492,568
Total average equity$ 657,100 $ 587,919 $ 567,448 $ 466,847 $ 437,077
Less: Intangible assets 149,432 118,364 114,563 78,878 79,620
Total average tangible equity$ 507,668 $ 469,555 $ 452,885 $ 387,969 $ 357,457
December 31, September 30, June 30, March 31, December 31,
LOANS 2017 2017 2017 2017 2016
Construction and land development$ 343,195 $ 245,151 $ 230,574 $ 174,992 $ 160,116
Commercial real estate 1,639,991 1,478,091 1,464,068 1,354,140 1,357,592
Residential real estate 1,038,740 941,169 991,144 893,674 836,787
Installment loans to individuals 188,712 184,485 178,595 165,039 153,945
Commercial and financial 606,015 535,457 465,138 385,189 370,589
Other loans 724 637 556 725 507
Total Loans$ 3,817,377 $ 3,384,990 $ 3,330,075 $ 2,973,759 $ 2,879,536

CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
December 31, September 30, June 30, March 31, December 31,
(Dollars in thousands) 2017 2017 2017 2017 2016
Customer Relationship Funding
Noninterest demand
Commercial$ 1,073,539 $ 997,749 $ 995,720 $ 916,940 $ 860,449
Retail 253,454 217,809 238,506 234,109 220,134
Public funds 50,837 43,686 47,691 52,126 48,690
Other 22,397 24,874 26,541 21,949 19,036
1,400,227 1,284,118 1,308,458 1,225,124 1,148,309
Interest-bearing demand
Commercial 157,272 156,176 155,178 117,629 102,320
Retail 702,616 670,705 659,906 613,121 591,808
Public funds 190,867 108,216 119,777 139,707 179,599
1,050,755 935,097 934,861 870,457 873,727
Total transaction accounts
Commercial 1,230,811 1,153,925 1,150,898 1,034,569 962,769
Retail 956,070 888,514 898,412 847,230 811,942
Public funds 241,704 151,902 167,468 191,833 228,289
Other 22,397 24,874 26,541 21,949 19,036
2,450,982 2,219,215 2,243,319 2,095,581 2,022,036
Savings 434,346 379,499 376,825 363,140 346,662
Money market
Commercial 375,471 360,567 351,871 313,094 286,879
Retail 471,086 431,325 427,575 414,886 411,696
Public funds 84,901 78,896 81,673 93,626 104,122
931,458 870,788 861,119 821,606 802,697
Time certificates of deposit 775,934 643,098 494,195 398,318 351,850
Total Deposits$ 4,592,720 $ 4,112,600 $ 3,975,458 $ 3,678,645 $ 3,523,245
Customer sweep accounts$ 216,094 $ 142,153 $ 167,558 $ 183,107 $ 204,202
Total core customer funding (1)$ 4,032,880 $ 3,611,655 $ 3,648,821 $ 3,463,434 $ 3,375,597
(1) Total deposits and customer sweep accounts, excluding certificates of deposits.

AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES (1) (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2017 2016
Fourth Quarter Third Quarter Fourth Quarter
Average Yield/ Average Yield/ Average Yield/
(Dollars in thousands)Balance Interest Rate Balance Interest Rate Balance Interest Rate
Assets
Earning assets:
Securities:
Taxable$ 1,369,921 $ 9,153 2.67% $ 1,356,276 $ 8,823 2.60% $ 1,251,015 $ 6,880 2.20%
Nontaxable 31,282 354 4.53 26,256 290 4.42 28,589 441 6.17
Total Securities 1,401,203 9,507 2.71 1,382,532 9,113 2.64 1,279,604 7,321 2.29
Federal funds sold and other
investments 79,025 638 3.20 76,773 664 3.43 90,437 517 2.28
Loans, net 3,691,344 43,375 4.66 3,407,376 40,456 4.71 2,833,895 32,056 4.50
Total Earning Assets 5,171,572 53,520 4.11 4,866,681 50,233 4.10 4,203,936 39,894 3.78
Allowance for loan losses (26,298) (26,299) (22,819)
Cash and due from banks 121,109 99,864 90,082
Premises and equipment 64,121 57,023 59,108
Intangible assets 149,432 118,364 79,620
Bank owned life insurance 123,272 95,759 48,954
Other assets 113,022 104,727 113,307
Total Assets$ 5,716,230 $ 5,316,119 $ 4,572,188
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand$ 976,295 $ 367 0.15% $ 927,278 $ 273 0.12% $ 812,056 $ 149 0.07%
Savings 431,124 94 0.09 377,729 52 0.05 343,753 44 0.05
Money market 929,914 785 0.33 870,166 605 0.28 824,440 429 0.21
Time deposits 761,720 2,032 1.06 548,092 1,266 0.92 360,712 598 0.66
Federal funds purchased and
securities sold under agreements to repurchase 166,006 231 0.55 165,160 204 0.49 184,612 110 0.24
Federal Home Loan Bank borrowings 320,380 968 1.20 439,755 1,293 1.17 339,457 392 0.46
Other borrowings 70,480 641 3.61 70,409 637 3.59 70,197 544 3.08
Total Interest-Bearing Liabilities 3,655,919 5,118 0.56 3,398,589 4,330 0.51 2,935,227 2,266 0.31
Noninterest demand 1,373,403 1,276,779 1,167,687
Other liabilities 29,808 52,832 32,197
Total Liabilities 5,059,130 4,728,200 4,135,111
Shareholders' equity 657,100 587,919 437,077
Total Liabilities & Equity$ 5,716,230 $ 5,316,119 $ 4,572,188
Interest expense as a % of earning assets 0.39% 0.35% 0.21%
Net interest income as a % of earning assets $ 48,402 3.71% $ 45,903 3.74% $ 37,628 3.56%
(1) On a fully taxable equivalent basis. All yields and rates have been computed on an annualized basis 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
2017 2016
Year to Date Year to Date
Average Yield/ Average Yield/
(Dollars in thousands)Balance Interest Rate Balance Interest Rate
Assets
Earning assets:
Securities:
Taxable$ 1,316,972 $ 34,442 2.61% $ 1,174,627 $ 26,133 2.22%
Nontaxable 28,369 1,401 4.94 25,841 1,592 6.16
Total Securities 1,345,341 35,843 2.66 1,200,468 27,725 2.31
Federal funds sold and other
investments 71,352 2,416 3.39 75,442 1,669 2.21
Loans, net 3,323,403 154,043 4.64 2,584,389 119,587 4.63
Total Earning Assets 4,740,096 192,302 4.06 3,860,299 148,981 3.86
Allowance for loan losses (25,485) (21,131)
Cash and due from banks 106,710 88,919
Premises and equipment 59,842 60,470
Intangible assets 115,511 66,611
Bank owned life insurance 97,939 45,009
Other assets 112,004 101,645
Total Assets$ 5,206,617 $ 4,201,822
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand$ 922,353 $ 1,065 0.12% $ 764,917 $ 616 0.08%
Savings 385,515 241 0.06 325,371 161 0.05
Money market 868,427 2,348 0.27 791,998 1,816 0.23
Time deposits 523,646 4,678 0.89 351,646 2,074 0.59
Federal funds purchased and
securities sold under agreements to repurchase 171,686 782 0.46 187,560 484 0.26
Federal Home Loan Bank borrowings 377,396 3,743 0.99 198,268 1,256 0.63
Other borrowings 70,377 2,443 3.47 70,097 2,060 2.94
Total Interest-Bearing Liabilities 3,319,400 15,300 0.46 2,689,857 8,467 0.31
Noninterest demand 1,279,825 1,066,463
Other liabilities 36,993 31,628
Total Liabilities 4,636,218 3,787,948
Shareholders' equity 570,399 413,874
Total Liabilities & Equity$ 5,206,617 $ 4,201,822
Interest expense as a % of earning assets 0.32% 0.22%
Net interest income as a % of earning assets $ 177,002 3.73% $ 140,514 3.63%
(1) On a fully taxable equivalent basis. All yields and rates have been computed on an annualized basis using amortized cost.
Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.

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 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.

Effective in the first quarter of 2017, adjusted net income and adjusted noninterest expense exclude the effect of amortization of acquisition-related intangibles. Prior periods have been revised to conform with the current period presentation.

QUARTER YTD
(Dollars in thousands except per share data)Fourth Third Second First Fourth December 31, December 31,
2017 2017 2017 2017 2016 2017 2016
$ 13,047 $ 14,216 $ 7,676 $ 7,926 $ 10,771 $ 42,865 $ 29,202
Net income
BOLI income (benefits upon death) 0 0 0 0 0 0 (464)
Gain on Sale of Visa Class B Shares (15,153) 0 0 0 0 (15,153) 0
Security (gains) / losses (112) 47 (21) 0 (7) (86) (368)
Total Adjustments to Revenue (15,265) 47 (21) 0 (7) (15,239) (832)
Merger related charges 6,817 491 5,081 533 561 12,922 9,028
Amortization of intangibles 963 839 839 719 719 3,360 2,486
Business continuity expenses - Hurricane Irma 0 352 0 0 0 352 0
Branch reductions and other expense initiatives 0 (127) 1,876 2,572 163 4,321 3,357
Early redemption cost for FHLB advances 0 0 0 0 0 0 1,777
Total Adjustments to Noninterest Expense 7,780 1,555 7,796 3,824 1,443 20,955 16,648
Effective tax rate on adjustments 3,147 (673) (2,786) (1,480) (404) (1,792) (5,949)
Effect of change in corporate tax rate 8,552 0 0 0 0 8,552 0
Adjusted Net Income$ 17,261 $ 15,145 $ 12,665 $ 10,270 $ 11,803 $ 55,341 $ 39,069
Earnings per diluted share, as reported 0.28 0.32 0.18 0.20 0.28 0.99 0.78
Adjusted Earnings per Diluted Share 0.37 0.35 0.29 0.26 0.31 1.28 1.04
Average shares outstanding (000) 46,673 43,792 43,556 39,499 38,252 43,350 37,508
Revenue$ 74,868 $ 57,183 $ 54,644 $ 48,070 $ 47,354 $ 234,765 $ 177,383
Total Adjustments to Revenue (15,265) 47 (21) 0 (7) (15,239) (832)
Adjusted Revenue 59,603 57,230 54,623 48,070 47,347 219,526 176,551
Noninterest Expense 39,184 34,361 41,625 34,746 30,297 149,916 130,881
Total Adjustments to Noninterest Expense 7,780 1,555 7,796 3,824 1,443 20,955 16,648
Adjusted Noninterest Expense 31,404 32,806 33,829 30,922 28,854 128,961 114,233
Adjusted Noninterest Expense 31,404 32,806 33,829 30,922 28,854 128,961 114,233
Foreclosed property expense and net (gain)/loss on sale (7) (298) 297 (293) (78) (301) 43
Net Adjusted Noninterest Expense 31,411 33,104 33,532 31,215 28,932 129,262 114,190
Adjusted Revenue 59,603 57,230 54,623 48,070 47,347 219,526 176,551
Impact of FTE adjustment 174 154 164 211 204 703 204
Adjusted Revenue on a fully taxable equivalent basis 59,777 57,384 54,787 48,281 47,551 220,229 176,755
Adjusted Efficiency Ratio 52.6% 57.7% 61.2% 64.7% 60.8% 58.7% 64.6%
Average Assets$ 5,716,230 $ 5,316,119 $ 5,082,002 $ 4,699,745 $ 4,572,188 $ 5,206,617 $ 4,201,819
Less average goodwill and intangible assets (149,432) (118,364) (114,563) (78,878) (79,620) (115,511) (66,608)
Average Tangible Assets 5,566,798 5,197,755 4,967,439 4,620,867 4,492,568 5,091,106 4,135,211
Return on Average Assets (ROA) 0.91% 1.06% 0.61% 0.68% 0.94% 0.82% 0.69%
Impact of removing average intangible assets and related amortization 0.06 0.06 0.05 0.06 0.06 0.06 0.05
Return on Tangible Average Assets (ROTA) 0.97 1.12 0.66 0.74 1.00 0.88 0.74
Impact of other adjustments for Adjusted Net Income 0.26 0.04 0.36 0.16 0.05 0.21 0.20
Adjusted Return on Average Tangible Assets 1.23 1.16 1.02 0.90 1.05 1.09 0.94
Average Shareholders' Equity$ 657,100 $ 587,919 $ 567,448 $ 466,847 $ 437,077 $ 570,399 $ 406,084
Less average goodwill and intangible assets (149,432) (118,364) (114,563) (78,878) (79,620) (115,511) (66,608)
Average Tangible Equity 507,668 469,555 452,885 387,969 357,457 454,888 339,476
Return on Average Shareholders' Equity 7.9% 9.6% 5.4% 6.9% 9.8% 7.5% 7.2%
Impact of removing average intangible assets and related amortization 2.8 2.9 1.9 1.9 2.7 2.4 1.9
Return on Average Tangible Common Equity (ROTCE) 10.7 12.5 7.3 8.8 12.5 9.9 9.1
Impact of other adjustments for Adjusted Net Income 2.8 0.3 3.9 1.9 0.6 2.3 2.4
Adjusted Return on Average Tangible Common Equity 13.5 12.8 11.2 10.7 13.1 12.2 11.5

Please visit Seacoast Bank’s website for a PDF version of this press release and information on the 4th Quarter 2017 Earnings Conference Call: http://www.seacoastbanking.com/presentations.aspx?iid=100425

Source:Seacoast Banking Corporation of Florida