9. Seacoast Banking Corp. of Florida
Shares of Seacoast Banking Corp of Florida (SBCF) of Stuart closed at $1.66 Monday, down 6% over the previous year. The company was also listed as a possible target by Brett Scheiner.Income Statement Seacoast reported a fourth-quarter net loss to common shareholders of $11.1 million, or 12 cents a share, which was higher than the third-quarter loss of $8.6 million, or 9 cents a share, but sharply down from the fourth quarter of 2009, when the loss to common shareholders was $39.1 million, or 73 cents a share. Earnings available to common shareholders exclude dividends paid on the $50 million in preferred shares held by the government for bailout assistance received in December 2008. The company's provision for loan losses continued to decline, to $4 million in the fourth quarter, from $8.9 million the previous quarter and $41.5 million during the fourth quarter of 2009. The decline in linked-quarter earnings reflected an increase in losses on repossessed real estate, which totaled $8.8 million in the fourth quarter, compared to $859 thousand the previous quarter and $2.1 million a year earlier. The fourth-quarter net interest margin was 3.42%, increasing from 3.35% a year earlier. CEO Dennis Hudson said the company was "encouraged by the improvement in our operating results, driven by several of our business lines," and also said he expected Seacoast to return to profitability during 2011. Balance Sheet Total assets were $2 billion as of December 31 and nonperforming assets - including nonaccrual loans and repossessed assets and excluding performing restructured loans - totaled $94 million, or 4.66% of total assets, improving from 5.06% the previous quarter and 5.73% a year earlier. The net charge-off ratio for the fourth quarter was 1.47% and loan loss reserves covered 3.04% of total loans as of December 31. Seacoast's regulatory total risk-based capital ratio was a strong 17.8% as of December 31. The company raised $50 million in common equity during the second quarter. The tangible common equity ratio was 5.81% as of December 31 and was up from 4.79% a year earlier, but was still a relatively low level, considering the continued losses and eventual need to repay Troubled Asset Relief Program. Stock Ratios The shares trade at about tangible book value, which Seacoast said was $1.75 a share as of December 31. The forward price-to-earnings ratio is 24, based on the consensus 2012 earnings estimate of 7 cents a share, among analysts polled by Thomson Reuters. Analyst Ratings All 10 analysts covering Seacoast Banking Corp. of Florida have neutral ratings on the shares. The company has been a survivor on Florida's Treasure Coast, having successfully raised the capital it needed to weather the credit storm. In October, Christopher Marinac of FIG Partners said in a report that "investors in SBCF must remain patient for near-term upside," and placed a "franchise Value for SBCF of around $1.95 per share."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV