Seacoast Reports Third Quarter 2020 Results Nasdaq:SBCFOctober 27, 2020
Focus on Growing Noninterest Income Delivers Record Results in Mortgage Banking,
Wealth Management, and Interchange Income
Well-Positioned Balance Sheet with Strong Capital and Liquidity
STUART, Fla., Oct. 27, 2020 (GLOBE NEWSWIRE) — Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”) (NASDAQ: SBCF) today reported net income in the third quarter of 2020 of $22.6 million, or $0.42 per diluted share. Adjusted net income1 for the third quarter of 2020 was $27.3 million, or $0.50 per diluted share. The ratio of tangible common equity to tangible assets was 10.67%, tangible book value per share increased to $15.57 and Tier 1 capital increased to 16.8%.
For the third quarter of 2020, return on average tangible assets was 1.20%, return on average tangible shareholders’ equity was 11.35%, and the efficiency ratio was 61.65%, compared to 1.37%, 13.47%, and 50.11%, respectively, in the prior quarter. Adjusted return on average tangible assets1 was 1.38%, adjusted return on average tangible shareholders’ equity1 was 13.06%, and the adjusted efficiency ratio1 was 54.82%, compared to 1.33%, 13.09%, and 49.60%, respectively, in the prior quarter.
Dennis S. Hudson, III, Seacoast’s Chairman and CEO, said, “We delivered another quarter of disciplined performance. Tangible book value per share grew 12% on an annualized basis, and the tangible common equity to tangible asset ratio increased to 10.67%. I am incredibly proud of the Seacoast team’s ability to adapt quickly, overcoming the challenges presented by the pandemic operating environment. The team has provided highly competitive service through our bankers, call center, retail branches, and digital products and is consistently winning new customer relationships.”
Hudson added, “I am also excited to welcome the Freedom Bank team and their customers to the Seacoast franchise. St. Petersburg is an outstanding, growing business community. I look forward to the combined organization driving growth in that important market in the years to come.”
Charles M. Shaffer, Seacoast’s President and Chief Operating Officer, said, “Our longstanding commitment to maintaining a fortress balance sheet with robust capital levels has positioned us with a solid foundation for operating in the pandemic environment. We continue to support our communities while maintaining strict underwriting standards, and carefully navigating the economy’s uncertain outlook. Our results in the quarter highlighted innovative agility from our mortgage banking team and continued growth in assets under management by our wealth management group. Our focus on driving interchange income has resulted in performance that outpaces pre-pandemic levels. We are operating from a position of strength and are well-positioned when compared to peers to take advantage of opportunities that will materialize in the years ahead.”
Paycheck Protection Program Impact on the Quarter
Fees earned by Seacoast to originate Paycheck Protection…