STUART, Fla., Dec. 10 /PRNewswire-FirstCall/ -- Seacoast Banking
Corporation of Florida (Nasdaq: SBCF), a bank holding company whose principal
subsidiary is Seacoast National Bank, announced today that it has received
preliminary approval from the U.S. Treasury Department, for the investment,
subject to closing, of $50 million in the Company. The increase in capital
will further strengthen Seacoast's existing well capitalized status. Funds
from the investment will be treated as Tier 1 capital, increasing Seacoast's
total risk based capital ratio to approximately 14.6 percent and its Tier 1
leverage ratio to 10.3 percent based on the Company's most recent quarter end
data.
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The Treasury's plan to invest $50 million in preferred stock and warrants
in Seacoast is part of its program to provide capital to healthy financial
institutions. Seacoast is among the first Florida based institutions to be
approved for the program.
"This government program is an important step to restoring the flow of
funds to consumers and businesses in our markets," said Dennis S. Hudson, III,
Seacoast's Chairman and Chief Executive Officer. "This additional capital will
allow us to continue our lending to small and medium sized businesses and
consumers, which will assist our local market business owners and consumers as
our economy recovers."
Seacoast will pay the government a five percent dividend, or $2.5 million
annually, for each of the first five years of the investment, and nine percent
thereafter unless the shares are redeemed. The government will also receive
10-year warrants for common stock valued at 15 percent of the preferred stock
investment, which will give the Treasury the opportunity to benefit from any
increase in the common stock price of the Company. The Company may redeem the
preferred stock at par plus accrued but unpaid dividends during the first 3
years with the proceeds from the sale of Company common or preferred stock
that is Tier 1 capital, subject to customary regulatory approvals. Redemption
of the preferred stock in whole prior to 2010 will result in the cancellation
of 50% of the warrants.
Seacoast National Bank also has elected to participate in the FDIC's
Temporary Liquidity Guarantee Program for unsecured senior debt and non-
interest bearing transaction deposit accounts. The Company may apply to
participate in the FDIC's unsecured senior debt guarantee program, but the
Company did not have any eligible debt outstanding at September 30, 2008 for
purposes of the debt guarantee program.
Seacoast, with approximately $2.3 billion in assets, is one of the largest
independent commercial banking organizations in Florida. Seacoast has 41
offices in South and Central Florida and is headquartered on Florida'sTreasure Coast, which is one of the wealthiest areas in the nation.
Cautionary Notice Regarding Forward-Looking Statements
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, 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 and for integration of banks
that we have acquired, as well as statements with respect to Seacoast's
objectives, 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
and regulatory changes; the risks of satisfying all closing conditions to the
sale of any securities; the risks of changes in interest rates on the level
and composition of deposits, loan demand, 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, 2007 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.
SOURCE Seacoast Banking Corporation of Florida
Contact: Dennis S. Hudson, III, Chairman and Chief Executive Officer, +1-772-288-6085, or William R. Hahl, Executive Vice President and Chief Financial Officer, +1-772-221-2825, both of Seacoast Banking Corporation of Florida