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Press Release

Seacoast Reports Record Second Quarter 2019 Earnings Results

Company Release - 7/25/2019 4:25 PM ET

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

Improved Operating Leverage and Strong Noninterest Income Highlight Quarterly Results

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

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

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

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

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

Second Quarter 2019 Financial Highlights

Income Statement

  • Net income was $23.3 million, or $0.45 per diluted share, compared to $22.7 million, or $0.44, for the prior quarter and $17.0 million, or $0.35, for the second quarter of 2018. For the six months ended June 30, 2019, net income was $46.0 million, or $0.88 per diluted share, compared to $35.0 million, or $0.73, for the six months ended June 30, 2018. Adjusted net income1 was $25.8 million, or $0.50 per diluted share, compared to $24.2 million, or $0.47, for the prior quarter and $18.3 million, or $0.38, for the second quarter of 2018. For the six months ended June 30, 2019, adjusted net income1 was $50.0 million, or $0.96 per diluted share, compared to $37.6 million, or $0.79, for the six months ended June 30, 2018.

  • Net revenues were $73.7 million, an increase of $0.1 million, compared to the prior quarter, and an increase of $10.8 million, or 17%, compared to the second quarter of 2018. For the six months ended June 30, 2019, net revenues were $147.3 million, an increase of $22.3 million, or 18%, compared to the six months ended June 30, 2018. Adjusted revenues1 were $74.2 million, an increase of $0.6 million, or 1%, from the prior quarter and an increase of $11.2 million, or 18%, from the second quarter of 2018. For the six months ended June 30, 2019, adjusted revenues1 were $147.8 million, an increase of $22.7 million, or 18%, compared to the six months ended June 30, 2018.

  • Net interest income totaled $60.1 million, a decrease of $0.6 million, or 1%, from the prior quarter and an increase of $9.9 million, or 20%, from the second quarter of 2018. For the six months ended June 30, 2019, net interest income was $120.9 million, an increase of $20.9 million, or 21%, compared to the six months ended June 30, 2018.

  • Net interest margin was 3.94% in the second quarter of 2019, 4.02% in the first quarter of 2019 and 3.77% in the second quarter of 2018. Quarter-over-quarter, the yield on loans contracted 6 basis points, the yield on securities contracted 2 basis points, and the cost of deposits increased 9 basis points. The impact on net interest margin from accretion of purchase discounts on acquired loans was 27 basis points in the second quarter of 2019, compared to 26 basis points in the prior quarter and 17 basis points in the second quarter of 2018. During the quarter, the yield curve declined across all points on the curve, affecting variable rate loans and securities, and reducing add-on rates for new loans originated. Of note, late in the quarter, deposit rate pressure began to abate.

  • Noninterest income totaled $13.6 million, an increase of $0.7 million, or 6%, compared to the prior quarter and an increase of $0.9 million, or 7%, from the second quarter of 2018. For the six months ended June 30, 2019, noninterest income was $26.4 million, an increase of $1.4 million, or 6%, compared to the six months ended June 30, 2018. Sequentially, noninterest income increased across nearly every category. Highlights include an increase of $0.6 million in mortgage banking fees, reflecting increasing success in generating saleable mortgage volume, a $0.2 million increase in wealth-related fees attributed to continued growth in assets under management, a $0.2 million increase in service charges on deposits, in part the result of increased revenue from treasury products, and a $0.2 million increase in other income, primarily attributed to higher swap fees. During the quarter, $38.2 million of securities were sold with an average yield of 1.85%, resulting in a loss of $0.6 million. These funds were reinvested at an average yield of 2.90%.

  • The provision for loan losses was $2.6 million compared to $1.4 million in the prior quarter and $2.5 million in the second quarter of 2018.

  • Noninterest expense was $41.0 million, a decrease of $2.1 million, or 5%, compared to the prior quarter and an increase of $2.8 million, or 7%, from the second quarter of 2018. For the six months ended June 30, 2019, noninterest expense was $84.1 million, an increase of $8.7 million, or 12%, compared to the six months ended June 30, 2018. Sequentially, changes from the first quarter of 2019 in noninterest expense consisted of the following:

    º Salaries and wages increased by $0.9 million, attributed to $1.1 million in severance costs associated with the reduction of 50 full time equivalent employees as previously announced. The full benefit of the reduction in force should be realized in the third quarter.

    º Employee benefits decreased $1.0 million attributed to the reduction in full time equivalent employees, lower seasonal payroll taxes and 401(k) plan contributions, and lower health insurance claims when compared to the first quarter of 2019.

    º Legal and professional fees decreased by $0.8 million primarily due to higher expenses incurred in the first quarter of 2019 on projects in risk management and lending operations, leading to the successful launch of our commercial digital origination platform.

    º Our continued focus on efficiency and streamlining operations resulted in decreases across several categories, most notably a decrease of $0.8 million in other expenses and $0.2 million in furniture and equipment.

    º During the quarter, we closed one banking center location, resulting in a $0.3 million one-time expense which is included in occupancy expense. We will close an additional banking center location in the third quarter.

  • Seacoast recorded $6.9 million in income tax expense in the second quarter of 2019, compared to $6.4 million in the prior quarter and $5.2 million in the second quarter of 2018. Tax benefits related to stock-based compensation were $0.1 million in the second quarter compared to $0.6 million in the prior quarter, during which a significant amount of previously granted awards vested. The quarter-over-quarter change unfavorably impacted earnings per share by one cent.

  • Year to date adjusted revenues1 increased 18% compared to prior year while adjusted noninterest expense1 increased 10%, generating 8% operating leverage.

  • The efficiency ratio was 53.5% compared to 56.6% in the prior quarter and 58.4% in the second quarter of 2018. The adjusted efficiency ratio1 was 51.4% compared to 55.8% in the prior quarter and 57.3% in the second quarter of 2018. The reduction in both ratios was the outcome of our continued focus on streamlining operations, in combination with driving top-line revenue improvements.

Balance Sheet

  • At June 30, 2019, the Company had total assets of $6.8 billion and total shareholders' equity of $930.2 million.  Book value per share was $18.08 and tangible book value per share was $13.65, compared to $17.44 and $12.98, respectively, at March 31, 2019 and $15.18 and $11.67, respectively, at June 30, 2018. Year-over-year, tangible book value per share increased 17%.

  • Debt securities totaled $1.2 billion at June 30, 2019, an increase of $28.9 million compared to the prior quarter and a decrease of $135.1 million from June 30, 2018. During the quarter, $38.2 million of securities were sold, with an average yield of 1.85%, resulting in a loss of $0.6 million. Purchases of securities during the quarter totaled $87.4 million at an average yield of 2.90%.

  • Loans totaled $4.9 billion at June 30, 2019, an increase of $59.7 million, or 1.2%, compared to the prior quarter, and an increase of $914.1 million, or 23%, from June 30, 2018.

  • New loan originations of $407 million, compared to $310 million in the prior quarter, resulted in net loan growth in the quarter of 5% on an annualized basis, overcoming a $59 million increase in early loan payoffs when compared to the prior quarter. During the second quarter, we saw acceleration in commercial real estate loans being refinanced away with minimal or no covenants, limited or no guarantees, in combination with increasing leverage in projects. Additionally, we allowed a few higher risk loans to be refinanced away in categories such as marinas, hotels, and speculative construction. We remain patient and committed to our strict underwriting principles.

  • Consumer and small business originations for the second quarter of 2019 were a record $136.5 million, an increase of 15% compared to the first quarter of 2019 and an increase of 30% compared to the second quarter of 2018.

  • Commercial originations during the second quarter of 2019 were $157.0 million, an increase of 44% compared to the first quarter of 2019 and an increase of 12% compared to the second of quarter 2018.

  • Closed residential loans retained in the portfolio for the second quarter of 2019 were $51.8 million, up 4% from the first quarter of 2019 and down 31% from the second quarter of 2018. The decrease from prior year is consistent with the mortgage banking team's shift towards generating saleable volume and away from residential construction lending.

  • We continue to manage the Company's exposure to commercial real estate. Construction and land development and commercial real estate loans remain well below regulatory guidance at 51% and 205% of total bank-level risk based capital, respectively, down from 57% and 216%, respectively, in the first quarter of 2019. On a consolidated basis, inclusive of capital at the holding company, construction and land development and commercial real estate loans represent 48% and 192%, respectively, of total consolidated risk based capital.

  • Concentrations continue to be well managed with an average commercial loan size of approximately $350,000. The top 10 and top 20 relationships represented 19% and 34%, respectively, of total consolidated risk based capital, down from 25% and 42% compared to second quarter of 2018 and down from 29% and 48% compared to second quarter of 2016. Our largest committed exposure totals $29 million.

  • Pipelines (loans in underwriting and approval or approved and not yet closed) remained strong, totaling $377.6 million as of June 30, 2019.

  • Consumer and small business pipelines were $65.5 million, a decrease of 3% sequentially and an increase of 24% compared to the prior year.

  • Commercial pipelines were $261.6 million, an increase of 48% sequentially and 34% compared to the prior year.

  • Residential pipelines were $50.5 million, an increase of 11% sequentially and a decrease of 21% compared to the prior year, consistent with a shift in focus to generating saleable volume, which at June 30, 2019 represents 90% of the residential pipeline.

  • Total deposits were $5.5 billion as of June 30, 2019, a decrease of $64.4 million, or 1.1%, sequentially and an increase of $843.8 million, or 18%, from the prior year.

  • Total deposits grew 3% on an annualized basis quarter-over-quarter, excluding the impact of a $99 million reduction in brokered time deposits. The decrease in brokered time deposits was the result of a shift towards lower rate Federal Home Loan Bank advances in the second quarter.

  • During the second quarter, we accelerated the velocity of our commercial customer acquisition, with business checking balances growing 8% on an annualized basis overcoming seasonal pressure, the result of expansion of our business banking franchise in the Tampa and Fort Lauderdale markets.

  • Interest-bearing deposits (interest-bearing demand, savings and money market deposits) increased year-over-year $373.0 million, or 15%, to $2.8 billion, noninterest bearing demand deposits increased $206.2 million, or 14%, to $1.7 billion, and CDs increased $264.6 million, or 34%, to $1.1 billion.

  • Overall cost of deposits increased to 76 basis points. Of note, late in the quarter, deposit rate pressure began to abate.

  • Second quarter return on average tangible assets (ROTA) was 1.50%, compared to 1.48% in the prior quarter and 1.24% in the second quarter of 2018. Adjusted ROTA1 was 1.59% compared to 1.50% in the prior quarter and 1.28% in the second quarter of 2018.

Capital

  • Second quarter return on average tangible common equity (ROTCE) was 14.3%, compared to 14.9% in the prior quarter and 13.1% in the second quarter of 2018. Adjusted ROTCE1 was 15.2% compared to 15.1% in the prior quarter and 13.5% in the second quarter of 2018.

  • The tier 1 capital ratio was 14.6%, total capital ratio was 15.2% and the tier 1 leverage ratio was 11.7% at June 30, 2019.

  • Tangible common equity to tangible assets was 10.7% at June 30, 2019, compared to 10.2% at March 31, 2019 and 9.6% at June 30, 2018.

Asset Quality

  • Nonperforming loans to total loans outstanding was 0.47% at June 30, 2019, 0.46% at March 31, 2019, and 0.66% at June 30, 2018.

  • Nonperforming assets to total assets was 0.50% at June 30, 2019, 0.51% at March 31, 2019 and 0.58% at June 30, 2018. Nonperforming assets decreased by $0.5 million to $33.8 million in the second quarter of 2019.

  • The ratio of allowance for loan losses to total loans was 0.69% at June 30, 2019, 0.68% at March 31, 2019, and 0.73% at June 30, 2018. The ratio of allowance for loan losses to non-acquired loans was 0.87% at June 30, 2019, 0.89% at March 31, 2019, and 0.88% at June 30, 2018.

  • Net charge-offs were $1.8 million or 0.15% of average loans for the second quarter of 2019 compared to $1.0 million, or 0.08% of average loans in the prior quarter.
FINANCIAL HIGHLIGHTS   (Unaudited)   
(Amounts in thousands except per share data)        
 Quarterly Trends
          
 2Q'19 1Q'19 4Q'18 3Q'18 2Q'18
Selected Balance Sheet Data:         
Total Assets$6,824,886  $6,783,389  $6,747,659  $5,930,934  $5,922,681 
Gross Loans4,888,139  4,828,441  4,825,214  4,059,323  3,974,016 
Total Deposits5,541,209  5,605,578  5,177,240  4,643,510  4,697,440 
          
Performance Measures:         
Net Income$23,253  $22,705  $15,962  $16,322  $16,964 
Net Interest Margin3.94% 4.02% 4.00% 3.82% 3.77%
Average Diluted Shares Outstanding51,952  52,039  51,237  48,029  47,974 
Diluted Earnings Per Share (EPS)$0.45  $0.44  $0.31  $0.34  $0.35 
Return on (annualized):         
Average Assets (ROA)1.38% 1.36% 0.96% 1.10% 1.16%
Average Tangible Assets (ROTA)1.50  1.48  1.05  1.18  1.24 
Average Tangible Common Equity (ROTCE)14.30  14.86  10.94  12.04  13.08 
Efficiency Ratio53.48  56.55  65.76  57.04  58.41 
          
Adjusted Operating Measures1:         
Adjusted Net Income$25,818  $24,205  $23,893  $17,626  $18,268 
Adjusted Diluted EPS0.50  0.47  0.47  0.37  0.38 
Adjusted ROTA1.59% 1.50% 1.49% 1.22% 1.28%
Adjusted ROTCE15.17  15.11  15.44  12.43  13.49 
Adjusted Efficiency Ratio51.44  55.81  54.19  56.29  57.31 
Adjusted Noninterest Expenses as a         
Percent of Average Tangible Assets2.34  2.55  2.46  2.48  2.57 
          
Other Data:         
Market capitalization2$1,309,158  $1,354,759  $1,336,415  $1,380,275  $1,489,411 
Full-time equivalent employees852  902  902  835  826 
Number of ATMs81  84  87  86  87 
Full service banking offices49  50  51  49  49 
Registered online users104,017  102,274  99,415  94,400  92,107 
Registered mobile devices92,281  87,844  83,151  73,300  69,038 
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP
2Common shares outstanding multiplied by closing bid price on last day of each period

Vision 2020

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

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

Second Quarter Operating Highlights

Modernizing How We Sell

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

Lowering Our Cost to Serve

  • We consolidated one banking center location in the second quarter of 2019 with an eight month payback period and one-time expense of $0.3 million. We have one remaining consolidation planned for the third quarter of 2019.

  • We’ve now achieved our Vision 2020 objective of reducing our footprint by 20% to meet the evolving needs of our customers. We were able to achieve this objective ahead of plan due to successful M&A and the repositioning of our banking center network in strategic growth markets.

  • At quarter end, average deposits per banking center exceeded $113 million, up from $96 million during the same period last year.

  • During the quarter, we completed our previously announced $10 million annual expense reduction initiative, which included reducing the full time equivalent employee count by 50, renegotiating key vendor contracts, and reducing expenses across a number of line items.

Driving Improvements in How Our Business Operates

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

Scaling and Evolving Our Culture

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

OTHER INFORMATION

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

Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast's website at www.SeacoastBanking.com. The link is located in the subsection "Presentations" under the heading "Investor Services." Beginning the afternoon of July 26, 2019, an archived version of the webcast can be accessed from this same subsection of the website. The archived webcast will be available for one year.

About Seacoast Banking Corporation of Florida (NASDAQ: SBCF)
Seacoast Banking Corporation of Florida is one of the largest community banks headquartered in Florida with approximately $6.8 billion in assets and $5.5 billion in deposits as of June 30, 2019. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, and 49 traditional branches of its locally-branded, wholly-owned subsidiary bank, Seacoast Bank. Offices stretch from Fort Lauderdale, Boca Raton and West Palm Beach north through the Daytona Beach area, into Orlando and Central Florida and the adjacent Tampa market, and west to Okeechobee and surrounding counties. More information about the Company is available at www.SeacoastBanking.com.

Cautionary Notice Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning, and protections, of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, cost savings, enhanced revenues, economic and seasonal conditions in our markets, and improvements to reported earnings that may be realized from cost controls, tax law changes, and for integration of banks that we have acquired, or expect to acquire, as well as statements with respect to Seacoast's objectives, strategic plans, including Vision 2020, expectations and intentions and other statements that are not historical facts. Actual results may differ from those set forth in the forward-looking statements.

Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates and intentions about future performance and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance or achievements of Seacoast to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. You should not expect us to update any forward-looking statements.

All statements other than statements of historical fact could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may", "will", "anticipate", "assume", "should", "support", "indicate", "would", "believe", "contemplate", "expect", "estimate", "continue", "further", "plan", "point to", "project", "could", "intend", "target" or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the effects of future economic and market conditions, including seasonality; governmental monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve, as well as legislative, tax and regulatory changes; changes in accounting policies, rules and practices; the risks of changes in interest rates on the level and composition of deposits, loan demand, liquidity and the values of loan collateral, securities, and interest sensitive assets and liabilities; interest rate risks, sensitivities and the shape of the yield curve; uncertainty related to the impact of LIBOR calculations on securities and loans; changes in borrower credit risks and payment behaviors; changes in the availability and cost of credit and capital in the financial markets; changes in the prices, values and sales volumes of residential and commercial real estate; our ability to comply with any regulatory requirements; the effects of problems encountered by other financial institutions that adversely affect us or the banking industry; our concentration in commercial real estate loans; the failure of assumptions and estimates, as well as differences in, and changes to, economic, market and credit conditions; the impact on the valuation of our investments due to market volatility or counterparty payment risk; statutory and regulatory dividend restrictions; increases in regulatory capital requirements for banking organizations generally; the risks of mergers, acquisitions and divestitures, including our ability to continue to identify acquisition targets and successfully acquire desirable financial institutions; changes in technology or products that may be more difficult, costly, or less effective than anticipated; our ability to identify and address increased cybersecurity risks; inability of our risk management framework to manage risks associated with our business; dependence on key suppliers or vendors to obtain equipment or services for our business on acceptable terms; reduction in or the termination of our ability to use the mobile-based platform that is critical to our business growth strategy; the effects of war or other conflicts, acts of terrorism, natural disasters or other catastrophic events that may affect general economic conditions; unexpected outcomes of, and the costs associated with, existing or new litigation involving us; our ability to maintain adequate internal controls over financial reporting; potential claims, damages, penalties, fines and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions; the risks that our deferred tax assets could be reduced if estimates of future taxable income from our operations and tax planning strategies are less than currently estimated and sales of our capital stock could trigger a reduction in the amount of net operating loss carryforwards that we may be able to utilize for income tax purposes; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market areas and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the Internet; and the failure of assumptions underlying the establishment of reserves for possible loan losses.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2018, under "Special Cautionary Notice Regarding Forward-looking Statements" and "Risk Factors", and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at www.sec.gov.

 

FINANCIAL HIGHLIGHTS(Unaudited)    
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES      
  
 Quarterly Trends Six  Months Ended
              
(Amounts in thousands, except ratios and per share data)2Q'19 1Q'19 4Q'18 3Q'18 2Q'18 2Q'19 2Q'18
              
Summary of Earnings             
Net income$23,253  $22,705  $15,962  $16,322  $16,964  45,958  34,991 
Adjusted net income125,818  24,205  23,893  17,626  18,268  50,023  37,566 
Net interest income260,219  60,861  60,100  51,709  50,294  121,080  100,147 
Net interest margin2,33.94% 4.02% 4.00% 3.82% 3.77% 3.98% 3.78%
              
Performance Ratios             
Return on average assets-GAAP basis31.38% 1.36% 0.96% 1.10% 1.16% 1.37% 1.20%
Return on average tangible assets-GAAP basis3,41.50  1.48  1.05  1.18  1.24  1.49  1.29 
Adjusted return on average tangible assets1,3,41.59  1.50  1.49  1.22  1.28  1.55  1.33 
              
Return on average shareholders' equity-GAAP basis310.23  10.47  7.65  8.89  9.59  10.35  10.04 
Return on average tangible common equity-GAAP basis3,414.30  14.86  10.94  12.04  13.08  14.57  13.73 
Adjusted return on average tangible common equity1,3,415.17  15.11  15.44  12.43  13.49  15.14  14.14 
Efficiency ratio553.48  56.55  65.76  57.04  58.41  55.01  58.11 
Adjusted efficiency ratio151.44  55.81  54.19  56.29  57.31  53.62  57.18 
Noninterest income to total revenue (excluding securities losses)18.93  17.45  17.97  19.31  20.28  18.19  20.11 
Tangible common equity to tangible assets410.65  10.18  9.72  9.85  9.56  10.65  9.56 
Average loan-to-deposit ratio87.27  90.55  89.14  86.25  83.51  88.87  83.80 
End of period loan-to-deposit ratio88.53  86.38  93.43  87.77  84.91  88.53  84.91 
              
Per Share Data             
Net income diluted-GAAP basis$0.45  $0.44  $0.31  $0.34  $0.35  $0.88  $0.73 
Net income basic-GAAP basis0.45  0.44  0.32  0.35  0.36  0.89  0.74 
Adjusted earnings10.50  0.47  0.47  0.37  0.38  0.96  0.79 
              
Book value per share common18.08  17.44  16.83  15.50  15.18  18.08  15.18 
Tangible book value per share13.65  12.98  12.33  12.01  11.67  13.65  11.67 
Cash dividends declared             
              
              
1Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP.  
2Calculated on a fully taxable equivalent basis using amortized cost.  
3These ratios are stated on an annualized basis and are not necessarily indicative of future periods.  
4The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.  
5Defined as noninterest expense less amortization of intangibles and gains, losses, and expenses on foreclosed properties divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains).
     


CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)      
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES        
  
 Quarterly Trends Six  Months Ended
              
(Amounts in thousands, except per share data)2Q'19 1Q'19 4Q'18 3Q'18 2Q'18 2Q'19 2Q'18
              
Interest on securities:             
Taxable$8,933  $9,119  $9,528  $9,582  $9,389  $18,052  $18,750 
Nontaxable143  151  200  225  216  294  459 
Interest and fees on loans62,288  62,287  59,495  48,713  46,519  124,575  91,776 
Interest on federal funds sold and other investments873  918  835  634  585  1,791  1,201 
Total Interest Income72,237  72,475  70,058  59,154  56,709  144,712  112,186 
              
Interest on deposits4,825  3,873  3,140  2,097  1,988  8,698  3,526 
Interest on time certificates5,724  4,959  3,901  2,975  2,629  10,683  4,808 
Interest on borrowed money1,552  2,869  3,033  2,520  1,885  4,421  3,883 
Total Interest Expense12,101  11,701  10,074  7,592  6,502  23,802  12,217 
              
Net Interest Income60,136  60,774  59,984  51,562  50,207  120,910  99,969 
Provision for loan losses2,551  1,397  2,342  5,774  2,529  3,948  3,614 
Net Interest Income After Provision for Loan Losses57,585  59,377  57,642  45,788  47,678  116,962  96,355 
              
Noninterest income:             
Service charges on deposit accounts2,894  2,697  3,019  2,833  2,674  5,591  5,346 
Trust fees1,147  1,017  1,040  1,083  1,039  2,164  2,060 
Mortgage banking fees1,734  1,115  809  1,135  1,336  2,849  2,738 
Brokerage commissions and fees541  436  468  444  461  977  820 
Marine finance fees201  362  185  194  446  563  1,019 
Interchange income3,405  3,401  3,198  3,119  3,076  6,806  6,018 
BOLI income927  915  1,091  1,078  1,066  1,842  2,122 
SBA gains691  636  519  473  748  1,327  1,482 
Other2,503  2,266  2,810  1,980  1,923  4,769  3,562 
 14,043  12,845  13,139  12,339  12,769  26,888  25,167 
Securities losses, net(466) (9) (425) (48) (48) (475) (150)
Total Noninterest Income13,577  12,836  12,714  12,291  12,721  26,413  25,017 
              
              
Noninterest expenses:             
Salaries and wages19,420  18,506  22,172  17,129  16,429  37,926  31,810 
Employee benefits3,195  4,206  3,625  3,205  3,034  7,401  6,115 
Outsourced data processing costs3,876  3,845  5,809  3,493  3,393  7,721  7,072 
Telephone / data lines893  811  602  624  643  1,704  1,255 
Occupancy3,741  3,807  3,747  3,214  3,316  7,548  6,433 
Furniture and equipment1,544  1,757  2,452  1,367  1,468  3,301  2,925 
Marketing1,211  1,132  1,350  1,139  1,344  2,343  2,596 
Legal and professional fees2,033  2,847  3,668  2,019  2,301  4,880  4,274 
FDIC assessments337  488  571  431  595  825  1,193 
Amortization of intangibles1,456  1,458  1,303  1,004  1,004  2,914  1,993 
Foreclosed property expense and net (gain)/loss on sale(174) (40)   (136) 405  (214) 597 
Other3,468  4,282  4,165  3,910  4,314  7,750  9,147 
Total Noninterest Expense41,000  43,099  49,464  37,399  38,246  84,099  75,410 
              
Income Before Income Taxes30,162  29,114  20,892  20,680  22,153  59,276  45,962 
Income taxes6,909  6,409  4,930  4,358  5,189  13,318  10,971 
              
Net Income$23,253  $22,705  $15,962  $16,322  $16,964  $45,958  $34,991 
              
Per share of common stock:             
              
Net income diluted$0.45  $0.44  $0.31  $0.34  $0.35  $0.88  $0.73 
Net income basic0.45  0.44  0.32  0.35  0.36  0.89  0.74 
Cash dividends declared             
              
Average diluted shares outstanding51,952  52,039  51,237  48,029  47,974  51,998  47,828 
Average basic shares outstanding51,446  51,359  50,523  47,205  47,165  51,403  47,059 
              


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


CONSOLIDATED QUARTERLY FINANCIAL DATA(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES        
  
          
(Amounts in thousands)2Q'19 1Q'19 4Q'18 3Q'18 2Q'18
          
Credit Analysis         
Net charge-offs (recoveries) - non-acquired loans$1,621  $762  $3,693  $800  $1,715 
Net charge-offs (recoveries) - acquired loans220  201  56  (3) (25)
Total Net Charge-offs (Recoveries)1,841  963  3,749  797  1,690 
          
TDR valuation adjustments$27  $35  $35  $36  $33 
          
Net charge-offs (recoveries) to average loans - non-acquired loans0.13% 0.06% 0.32% 0.08% 0.17%
Net charge-offs (recoveries) to average loans - acquired loans0.02  0.02       
Total Net Charge-offs (Recoveries) to Average Loans0.15  0.08  0.32  0.08  0.17 
          
Provision for loan losses - non-acquired loans$2,326  $1,709  $2,343  $5,640  $2,591 
Provision for (recapture of) loan losses - acquired loans225  (312) (1) 134  (62)
Total Provision for Loan Losses$2,551  $1,397  $2,342  $5,774  $2,529 
          
Allowance for loan losses - non-acquired loans$33,393  $32,715  $31,803  $33,188  $28,384 
Allowance for loan losses - acquired loans112  107  620  677  540 
Total Allowance for Loan Losses$33,505  $32,822  $32,423  $33,865  $28,924 
          
Non-acquired loans at end of period$3,817,358  $3,667,221  $3,588,251  $3,383,571  $3,221,569 
Purchased noncredit impaired loans at end of period1,057,200  1,147,432  1,222,529  662,701  739,232 
Purchased credit impaired loans at end of period13,581  13,788  14,434  13,051  13,215 
Total Loans$4,888,139  $4,828,441  $4,825,214  $4,059,323  $3,974,016 
          
Non-acquired loans allowance for loan losses to non-acquired loans at end of period0.87% 0.89% 0.89% 0.98% 0.88%
Total allowance for loan losses to total loans at end of period0.69  0.68  0.67  0.83  0.73 
Purchase discount on acquired loans at end of period3.76  3.80  3.86  2.25  2.31 
          
End of Period         
Nonperforming loans - non-acquired$15,810  $15,423  $15,783  $18,998  $19,578 
Nonperforming loans - acquired6,986  6,990  10,693  7,142  6,624 
Other real estate owned - non-acquired66  831  386  418  354 
Other real estate owned - acquired1,612  1,725  3,020  1,203  4,969 
Bank branches closed included in other real estate owned9,365  9,365  9,396  3,094  3,094 
Total Nonperforming Assets$33,839  $34,334  $39,278  $30,855  $34,619 
          
Restructured loans (accruing)$14,534  $14,857  $13,346  $13,797  $14,241 
          
Nonperforming loans to loans at end of period - non-acquired0.41% 0.42% 0.44% 0.56% 0.61%
Nonperforming loans to loans at end of period - acquired0.65  0.60  0.86  1.06  0.88 
Total Nonperforming Loans to Loans at End of Period0.47  0.46  0.55  0.64  0.66 
          
Nonperforming assets to total assets - non-acquired0.37% 0.38% 0.38% 0.38% 0.39%
Nonperforming assets to total assets - acquired0.13  0.13  0.20  0.14  0.19 
Total Nonperforming Assets to Total Assets0.50  0.51  0.58  0.52  0.58 
          
 June 30, March 31, December 31, September 30, June 30,
Loans2019 2019 2018 2018 2018
          
Construction and land development$379,991  $417,565  $443,568  $376,257  $359,070 
Commercial real estate - owner occupied1,005,876  989,234  970,181  829,368  812,306 
Commercial real estate - non-owner occupied1,184,409  1,173,183  1,161,885  897,331  888,989 
Residential real estate1,400,184  1,329,166  1,324,377  1,152,640  1,103,946 
Consumer215,932  206,414  202,881  192,772  190,835 
Commercial and financial701,747  712,879  722,322  610,955  618,870 
Total Loans$4,888,139  $4,828,441  $4,825,214  $4,059,323  $3,974,016 
          


AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1(Unaudited)      
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES            
                  
 2Q'19 1Q'19 2Q'18
 Average   Yield/ Average   Yield/ Average   Yield/
(Amounts in thousands)Balance Interest Rate Balance Interest Rate Balance Interest Rate
                  
Assets                 
Earning assets:                 
Securities:                 
Taxable$1,169,891  $8,933  3.05% $1,186,374  $9,119  3.07% $1,324,280  $9,389  2.84%
Nontaxable24,110  179  2.96  26,561  190  2.86  32,055  273  3.41 
Total Securities1,194,001  9,112  3.05  1,212,935  9,309  3.07  1,356,335  9,662  2.85 
                  
Federal funds sold and other                 
investments91,481  873  3.83  91,136  918  4.09  49,387  585  4.75 
                  
Loans, net4,841,751  62,335  5.16  4,839,046  62,335  5.22  3,948,460  46,549  4.73 
                  
Total Earning Assets6,127,233  72,320  4.73  6,143,117  72,562  4.79  5,354,182  56,796  4.25 
                  
Allowance for loan losses(32,806)     (32,966)     (29,234)    
Cash and due from banks91,160      99,940      110,549     
Premises and equipment69,890      70,938      64,445     
Intangible assets228,706      230,066      166,393     
Bank owned life insurance124,631      123,708      121,008     
Other assets126,180      136,175      90,692     
                  
Total Assets$6,734,994      $6,770,978      $5,878,035     
                  
Liabilities and Shareholders' Equity                 
Interest-bearing liabilities:                 
Interest-bearing demand$1,118,703  $1,150  0.41% $1,029,726  $839  0.33% $996,929  $492  0.20%
Savings513,773  586  0.46  500,347  477  0.39  439,691  118  0.11 
Money market1,179,345  3,089  1.05  1,158,939  2,557  0.89  1,027,705  1,378  0.54 
Time deposits1,089,020  5,724  2.11  1,042,346  4,959  1.93  790,404  2,629  1.33 
Federal funds purchased and securities                 
sold under agreements to repurchase91,614  355  1.55  185,032  550  1.21  179,540  334  0.75 
Federal Home Loan Bank borrowings51,571  329  2.56  227,378  1,421  2.53  160,846  741  1.85 
Other borrowings70,903  868  4.91  70,836  898  5.14  70,623  810  4.60 
                  
Total Interest-Bearing Liabilities4,114,929  12,101  1.18  4,214,604  11,701  1.13  3,665,738  6,502  0.71 
                  
Noninterest demand1,646,934      1,612,548      1,473,331     
Other liabilities61,652      64,262      29,292     
Total Liabilities5,823,515      5,891,414      5,168,361     
                  
Shareholders' equity911,479      879,564      709,674     
                  
Total Liabilities & Equity$6,734,994      $6,770,978      $5,878,035     
                  
Cost of deposits    0.76%     0.67%     0.39%
Interest expense as a % of earning assets    0.79%     0.77%     0.49%
Net interest income as a % of earning assets  $60,219  3.94%   $60,861  4.02%   $50,294  3.77%
                  
                  
1On a fully taxable equivalent basis.  All yields and rates have been computed using amortized cost.    
Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.    


AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES        
  
 Six Months Ended June 30, 2019 Six Months Ended June 30, 2018
 Average   Yield/ Average   Yield/
(Amounts in thousands, except ratios)Balance Interest Rate Balance Interest Rate
            
Assets           
Earning assets:           
Securities:           
Taxable$1,178,087  $18,052  3.06% $1,342,676  $18,750  2.79%
Nontaxable25,329  368  2.91  32,346  580  3.59 
Total Securities1,203,416  18,420  3.06  1,375,022  19,330  2.81 
            
Federal funds sold and other           
investments91,310  1,791  3.96  52,761  1,201  4.59 
            
Loans, net4,840,406  124,671  5.19  3,910,625  91,833  4.74 
            
Total Earning Assets6,135,132  144,882  4.76  5,338,408  112,364  4.24 
            
Allowance for loan losses(32,885)     (28,356)    
Cash and due from banks95,526      112,215     
Premises and equipment70,411      65,184     
Intangible assets229,382      166,762     
Bank owned life insurance124,172      121,635     
Other assets131,148      89,086     
            
Total Assets$6,752,886      $5,864,934     
            
Liabilities and Shareholders' Equity           
Interest-bearing liabilities:           
Interest-bearing demand$1,074,460  $1,989  0.37% $999,287  $942  0.19%
Savings507,097  1,062  0.42  437,574  222  0.10 
Money market1,169,198  5,647  0.97  1,002,243  2,362  0.48 
Time deposits1,065,812  10,683  2.02  783,643  4,808  1.24 
Federal funds purchased and securities           
sold under agreements to repurchase138,065  905  1.32  177,771  608  0.69 
Federal Home Loan Bank borrowings138,989  1,750  2.54  218,298  1,771  1.64 
Other borrowings70,870  1,766  5.03  70,587  1,504  4.30 
            
Total Interest-Bearing Liabilities4,164,491  23,802  1.15  3,689,403  12,217  0.67 
            
Noninterest demand1,629,836      1,443,813     
Other liabilities62,949      29,221     
Total Liabilities5,857,276      5,162,437     
            
Shareholders' equity895,610      702,497     
            
Total Liabilities & Equity$6,752,886      $5,864,934     
            
Cost of deposits    0.72%     0.36%
Interest expense as a % of earning assets    0.78%     0.46%
Net interest income as a % of earning assets  $121,080  3.98%   $100,147  3.78%
            
            
1On a fully taxable equivalent basis.  All yields and rates have been computed using amortized cost.
Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.


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

Explanation of Certain Unaudited Non-GAAP Financial Measures

This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance. The Company believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance and if not provided would be requested by the investor community. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might define or calculate these measures differently. The Company provides reconciliations between GAAP and these non-GAAP measures. These disclosures should not be considered an alternative to GAAP.


GAAP TO NON-GAAP RECONCILIATION (Unaudited)      
SEACOAST  BANKING  CORPORATION  OF  FLORIDA  AND  SUBSIDIARIES          
              
 Quarterly Trends Six  Months Ended
              
(Amounts in thousands, except per share data)2Q'19 1Q'19 4Q'18 3Q'18 2Q'18 2Q'19 2Q'18
              
Net Income$23,253  $22,705  $15,962  $16,322  $16,964  $45,958  $34,991 
              
Total noninterest income13,577  12,836  12,714  12,291  12,721  26,413  25,017 
Securities losses, net466  9  425  48  48  475  150 
BOLI benefits on death (included in other income)    (280)        
Total Adjustments to Noninterest Income466  9  145  48  48  475  150 
Total Adjusted Noninterest Income14,043  12,845  12,859  12,339  12,769  26,888  25,167 
              
Total noninterest expense41,000  43,099  49,464  37,399  38,246  84,099  75,410 
Merger related charges  (335) (8,034) (482) (695) (335) (1,165)
Amortization of intangibles(1,456) (1,458) (1,303) (1,004) (1,004) (2,914) (1,993)
Branch reductions and other expense initiatives(1,517) (208) (587)     (1,725)  
Total Adjustments to Noninterest Expense(2,973) (2,001) (9,924) (1,486) (1,699) (4,974) (3,158)
Total Adjusted Noninterest Expense38,027  41,098  39,540  35,913  36,547  79,125  72,252 
              
Income Taxes6,909  6,409  4,930  4,358  5,189  13,318  10,971 
Tax effect of adjustments874  510  2,623  230  443  1,384  981 
Taxes and tax penalties on acquisition-related BOLI redemption    (485)        
Effect of change in corporate tax rate            (248)
Total Adjustments to Income Taxes874  510  2,138  230  443  1,384  733 
Adjusted Income Taxes7,783  6,919  7,068  4,588  5,632  14,702  11,704 
Adjusted Net Income$25,818  $24,205  $23,893  $17,626  $18,268  $50,023  $37,566 
              
Earnings per diluted share, as reported$0.45  $0.44  $0.31  $0.34  $0.35  $0.88  $0.73 
Adjusted Earnings per Diluted Share0.50  0.47