Seacoast Banking Corporation (FL) (SBCF)

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Quarterly Report (10-q)

Date : 05/12/2014 @ 2:34PM
Source : Edgar (US Regulatory)
Stock : Seacoast Banking Corp. of Florida (MM) (SBCF)
Quote : $10.5601 0.1701 (1.64%) @ 3:38PM

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NOTE K — SUBSEQUENT EVENTS

Acquisition

On April 24, 2014, Seacoast signed a definitive agreement and plan of merger with The BANKshares, Inc., a bank holding company (“BANKshares”). BANKshares founded in 1989, is headquartered in Winter Park, Florida, and following the closing of the merger, the acquisition is expected to add approximately $674 million in assets, $506 million in deposits, and $374 million in loans, along with twelve branch locations throughout central Florida. For the year ended December 31, 2013, BANKshares reported net income of $3.0 million, and for the three months ended March 31, 2014 had net income of $0.7 million. The all-stock transaction provides that BANKshares’ shareholders will receive 0.4975 shares of Seacoast common stock. Based on Seacoast’s closing price on April 23, 2014, the transaction would be valued at approximately $76 million, with closing to be completed in the fourth quarter of 2014, subject to regulatory approvals and customary closing conditions.

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FIRST QUARTER 2014

The following discussion and analysis is designed to provide a better understanding of the significant factors related to the Company’s results of operations and financial condition.

STRATEGIC OVERVIEW

A number of significant milestones marking both quantitative and qualitative improvements in our business were attained in 2013, better positioning the Company to increase net income to common shareholders in 2014, and prospectively. These included:

• the recapture of the $45 million valuation allowance on net deferred tax assets;

• a successful raise of $75 million in common equity;

• the termination of the Bank’s formal agreement with the Office of the Comptroller of the Currency (“OCC”), and

• the redemption of the Company’s $50 million in outstanding Series A Preferred Stock originally issued to the U.S. Department of Treasury under the Troubled Asset Relief Program.

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Realization of Deferred Tax Assets

At March 31, 2014, the Company had net deferred tax assets (“DTA”) of $63.7 million. Although realization is not assured, management believes that realization of the carrying value of the DTA is more likely than not, based upon expectations as to future taxable income and tax planning strategies, as defined by ASC 740 Income Taxes. In comparison, at March 31, 2013 the Company had net DTA of $18.2 million.

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Marker:
Seacoast Banking Cor (SBCF)
$10.57 up 0.18 (1.73%)
Volume: 69,555