Press Release

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Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCF), a bank holding company whose principal subsidiary is First National Bank and Trust Company of the Treasure Coast, today announced 2002 second quarter net income of $4.049 million or $0.28 diluted earnings per share (“DEPS”). This compares to the mean I/B/E/S earnings estimate of $0.26 DEPS, and net income of $3.702 million or $0.26 DEPS in the year-ago quarter. The above diluted earnings per share amounts reflect the impact of a previously announced three-for-one stock split effective July 1, 2002 to be issued on July 15, 2002. Trading of Seacoast shares on July 16, 2002 will reflect the additional shares issued as a result of the stock split. Earning per share pre-stock split were $0.84 DEPS for the second quarter 2002 compared to $0.78 DEPS in 2001.

“Second quarter results reflect our ongoing progress in growing earnings and increasing shareholder value by managing our margins and credit quality, and expanding our sources of fee based revenues,” said Dennis S. Hudson, III, President and Chief Executive Officer. “Our franchise value continues to expand with sustained growth in key areas, such as low‑cost/no‑cost transaction deposits, marine finance revenues, mortgage banking revenues, and debit card interchange revenues and other electronic fund transactions.”

For the first six months, net income totaled $7.735 million, or $0.54 DEPS, compared to $6.980 million and $0.49 DEPS earned in 2001, a 10.2 percent increase. Profits realized from investment securities sold added $244,000 or $0.017 DEPS to second quarter results and $285,000 or $0.020 DEPS for the first six months, compared to a year ago of $259,000 or $0.018 DEPS and $348,000 or $0.024 DEPS, respectively.

Other highlights for the quarter included the following:

Return on average equity improved to 16.76 percent compared to 16.52 percent for the second quarter 2001.

Commercial real estate loan balances outstanding increased 6.2 percent or $14.9 million compared to June 30, 2001.

Return on average assets increased to 1.33 percent compared to first quarter 2002 of 1.18 percent and second quarter 2001 of 1.28 percent.

Year-over-year second quarter average total deposits increased $48.6 million or 5.0 percent, and $96.8 million or 17.6 percent for low-cost/no-cost deposits.

Debit card income and other EFT fees increased 38.5 percent to $342,000 compared to second quarter 2001.

The efficiency ratio improved 100 basis points to 61.4 percent, compared to 62.4 percent a year ago.

The Company’s stock price increased 22 percent during the second quarter 2002 to close at $57.73 at quarter-end 2002.

Despite a challenging economic environment, nonperforming assets declined $128,000 from a year ago to $1,993,000 at June 30, 2002. Net charge-offs were $8,000 for the second quarter, compared to $124,000 for the first quarter 2002 and $39,000 for the second quarter last year. For the first six months, net charge-offs as a percent of average loans totaled three basis points compared to one basis point a year earlier. Historically, the Company’s credit quality has been significantly better than its peers.

Loan delinquencies, nonaccruals and loans past due 90 days remained stable compared to a year ago and as a percentage of average loans totaled 0.26 percent compared to 0.27 percent in 2001. The superior and stable credit quality, combined with a smaller loan portfolio as a result of selling substantially all current production of lower yielding residential loans, has resulted in no provisioning for loan losses during the last six consecutive quarters. The allowance as a percentage of loans, increased to 0.94 percent at June 30, 2002 compared to 0.87 percent a year ago. Management is not aware of any factors which would significantly impact the Company’s credit quality trends.

Fully taxable net interest income for the second quarter 2002 increased an annualized 15 percent from the first quarter 2002 and was $857,000 or 7.5 percent higher than the same period in 2001. In addition to the continued low interest rates paid for deposits, the increased net interest income was a result of the growth of both low-cost/no-cost transaction deposit balances and higher yielding loan products.

The yield on earning assets for the second quarter totaled 6.28 percent, five basis points lower than the first quarter of 2002, while interest bearing liabilities declined by 25 basis points to 2.52 percent. This resulted in the Company’s margin expanding by 18 basis points from 4.05 percent for the first quarter to 4.23 percent in the second quarter. Low-cost transaction balances increased $15 million, an annualized 13.1 percent from the first quarter 2002, while noninterest bearing balances increased $9 million or 22 percent annualized. The margin increased 11 basis points to 4.23 percent when compared to the same quarter last year.

While average loan balances declined by $28 million in the second quarter 2002, an increase in higher yield commercial and consumer products assisted in the improvement in the net interest margin. During the second quarter, the Company produced and sold $25 million in residential mortgage loans in the secondary market. In addition, the year-over-year results included: a decline in lower yield 1-4 family loans outstanding to 40.1 percent of total loans at June 30, 2002, compared to 47.0 percent a year earlier; growth in consumer and marine loan outstandings to 21.3 percent, an increase of 1.3 percent over prior year; and an increase in commercial/ commercial real estate loan outstandings to 38.6 percent of total loans compared to 33.0 percent in 2001.

Despite a challenging and uncertain economic environment, which negatively impacted revenues from the Company’s investment management businesses, noninterest income (excluding securities gains) increased 4.8 percent when compared to the prior year’s second quarter and an annualized 5.0 percent compared to this year’s first quarter.

Although the troubled financial markets remain unfavorable and are not expected to improve in the near term, the previously announced formation of Seacoast Asset Management, LLC, headed by Wall Street veteran Nola Maddox Falcone, CFA, to work with the Company’s Financial Services Group (as announced on June 12, 2002), could lead to further noninterest income growth in the latter part of the year.

During the current quarter, noninterest income related to mortgage loan production grew by 19.0 percent to $620,000 compared to $521,000 earned a year earlier. Likewise, fees related to marine loan production increased $81,000 or 31.4 percent compared to the same quarter for 2001, and added $339,000 to second quarter 2002 revenues. Brokerage commissions and fees totaled $570,000 for the second quarter, an improvement over the 2002 first quarter results of $543,000, and $556,000 in the prior year’s second quarter. Trust revenues declined to $542,000 for the second quarter, compared to the prior year results of $618,000, and stand at $1,139,000 at June 30, 2002, compared to $1,321,000 for the first six months of 2001.

Noninterest expenses totaled $10.0 million, an increase of 5.0 percent from the prior year’s second quarter, as the Company maintains a strong emphasis on cost controls. Legal and professional fees increased $157,000 or 52.7 percent as a result of various regulatory and shareholder communications regarding the simplification of the Company’s capital structure and a number of other changes to its Articles of Incorporation approved by shareholders. Other overhead expenses increased by $323,000 or 3.5 percent. As a result of reasonable overhead growth and improved revenue generation, the Company’s efficiency ratio improved to 61.4 percent versus 62.4 percent in the second quarter 2001 and 62.6 percent for the first quarter 2002.

As previously reported, during the quarter the Company’s board of directors approved a three-for-one stock split of its Common shares and simplified its capital structure by eliminating and converting its Class B Common Stock into Class A Common Stock, which was renamed “Common Stock”. These actions were taken to provide additional market liquidity and to make the Company’s common stock more attractive for investors.

Seacoast Banking Corporation of Florida has approximately $1.2 billion in assets. It is one of the largest independent commercial banking organizations in Florida, headquartered on Florida’s Treasure Coast, one of the wealthiest and fastest growing areas in the nation.

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.