Seacost Banking Corp. of Florida yesterday posted its first quarter 2011 financials, reporting its first operating profit since the first quarter of 2009 and its sixth consecutive quarter of improved credit.
Net income was $358,000 compared to a net loss of $1.6 million for the first quarter of 2009. Including preferred stock dividends and accretion of preferred stock discount of $937,000, the net loss applicable to common shareholders was $579,000, or $0.01 per average common diluted share for the first quarter, compared to a net loss of $2.5 million, or $0.04 per average common diluted share, for the first quarter of 2010.
Dennis S. Hudson, III, chairman and CEO of Seacost, said the company’s business plan implemented years ago cushioned the blow from the real estate crisis.
“The strategic framework we put in place over two years ago has enabled us to manage the effects of the real estate crisis effectively and on schedule,” Hudson stated in the press release. “We are now poised to accelerate our business plan to increase profitability and ultimately position Seacoast as a top-tier community bank, measured by low risk, strong organic growth and increased shareholder value.”
The company increased revenue generation improvements during the first quarter, driven by growth in core business and a stronger balance sheet.
“Our performance improved significantly in the first quarter of 2011 due to the completion last year of our focused strategy to eliminate exposure to residential and commercial construction and land development loans,” Hudson stated. “These loans included our largest and most troubled borrowers and represented our highest loss content following the unprecedented real estate valuation declines in Florida. True to our prediction that nonaccrual loans had peaked in September 2009, we have seen six consecutive quarters of improvement since then. We now expect more rapid improvement in the next two quarters as several larger problem loan relationships, which together comprise approximately 50 percent of nonaccrual loans outstanding at March 31, 2011, are expected to be liquidated as a result of contracts executed late in the first quarter.”
The company’s highlights for the first quarter 2011 include a 14% increase in core deposits; average business and personal noninterest bearing checking deposit balances increased $7.8 million or 20.5 percent and $11.8 million or 43.1 percent annualized, respectively, compared to the fourth quarter 2010; debit card income for the quarter totaled $891,000, up $77,000 or 9.5 percent linked quarter, and up $174,000 or 24.3 percent compared to first quarter 2010; and total risk based capital increased to 18.2 percent, up from 15.3 percent as of March 31, 2010.
For more information visit www.seacostbanking.net