This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

South Florida Housing Has Bottomed: Bank CEO

STUART, Fla. ( TheStreet) -- Seacoast Banking Corp. (SBCF - Get Report) of Stuart, Fla., has turned the corner, and CEO Dennis Hudson III says that "residential real estate is truly stabilizing" in the bank's market area.

Over the past five years, Seacoast has seen most of its major competitors -- big and small -- disappear, either through failure, merger or forced sale to a competitor.
Seacoast Banking Corp. CEO Dennis S. Hudson III

Hudson says that "the most important job for a CEO is to help an organization face reality, and that in 2007, "staying forward-focused allowed us to have the vision that [the real estate collapse] was bigger than we ever imagined." The bank "developed processes to quantify what we were dealing with, and the confidence to go out into the market and raise capital."

Seacoast completed several capital raises during 2009 and 2010. The company owes the government $50 million in bailout funds received through the Troubled Assets Relief Program, or TARP. Seacoast returned to operating profitability during the first quarter, although the company still posted a net loss to common shareholders after factoring dividends on preferred shares owned by the government. During the second quarter, the company reported a $176,000 profit to common shareholders.

On Aug. 17, Seacoast announced that it was current on all dividend payments to the U.S. Treasury on government-owned preferred shares and had notified trustees for its trust-preferred securities that all accrued and unpaid dividends on those securities would be made current in September.

The company reported its nonperforming loans had fallen for seven straight quarters, through June 30. At the end of the second quarter, nonperforming assets made up 3.46% of total assets, improving from 5.25% a year earlier. The company's tangible common equity ratio -- which excludes certain intangible assets, such as deferred tax assets -- was 5.84% as of June 30, was up from 5.60% the previous quarter, but down from 6.60% a year earlier. Seacoast said when it announced its second-quarter results that "a future recapture of the deferred tax asset valuation allowance would add (proforma) approximately 200 basis points to the TCE ratio."

The company had $2.1 billion in total assets as of June 30.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BAC $17.03 0.00%
JPM $67.52 0.00%
PNC $96.47 0.00%
SBCF $15.65 0.00%
TD $42.33 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs