Seacoast Banking Corporation of Florida (SBCF)

SBCF » Topics » Our next question comes from David Bishop from Stifel Nicolaus. Please go ahead.

This excerpt taken from the SBCF 8-K filed Apr 29, 2009.

Our next question comes from David Bishop from Stifel Nicolaus. Please go ahead.


David Bishop:

Hey, good morning, guys.


William R. Hahl:

Morning.


Dennis S. Hudson III:

Morning.


David Bishop:

In the preamble, you alluded to the increase in troubled debt restructuring, and it sounded like it was related to larger commercial credits there.  I’m just curious in terms of—I don't know if you can segment that in terms of maybe some color—where those issues were realizing from.  Was it office?  Was it retail?  Then was it more of a function of these loans coming to maturity and no permanent financing available, or what led you down the road to the TDR path?  


Dennis S. Hudson III:

The TDRs, the larger commercial TDRs, are frankly still in the residential construction book.  It's land loans, lots, models, things like that.  What we've done in a couple of cases—and this is unusual, most of these guys we cannot work with, I’ve got to tell you—but in some cases, we just sit down and say, "What are you going… What can we do to move this stuff off the books in the next six months?"  Then we put together a plan with the borrower to do that; and they go out and begin executing that plan.  Perhaps we'll burn off some of their personal guarantee if they hit their target, that sort of thing.  So it was not CRE or anything like that. We're still struggling with the construction book. The good news is:  what's left is largely on nonaccrual, so there isn't a whole lot further to go in the construction book. The other really good news is:  it's come down very dramatically from two years ago.  We've worked through a lot of that, and that's driven our losses up dramatically, but it better positions us for '09 and beyond.


The other part of the TDRs, frankly, this quarter, was plain vanilla well underwritten fully documented prime mortgage loans to consumers experiencing stress.  With the government programs that were announced in December, we saw a significant amount of activity in our borrower base coming in and beginning to question what sort of help we could give.  In many cases, there was a definite benefit to us working with them and giving them some relief—so some of that growth in TDRs was actually growth in residential mortgage TDRs.  In those cases, we are following our own program. We are not participating in the federal program, but our program looks 70% similar to the federal program.  We are looking to have them fully disclose what their current financial situation is.  In many instances, after that disclosure, we all conclude, including the customer, that there really isn't anything that can be done.  But in some cases, we are able to reduce the interest rate temporarily to help them stay on their feet, in hopes that a couple years down the line, they'll be in a better position to re-step up and restart looking at it.  We are also looking at refis for people where we can qualify them into current low rates and that sort of thing.  Hope that helps.


David Bishop:

This excerpt taken from the SBCF 8-K filed Jul 29, 2008.

Our next question comes from David Bishop from Stifel Nicolaus. Please go ahead.


David Bishop:

Hey, Denny, quick follow-up here: Obviously market clearing prices are impacting carrying values as well, but I was curious if the examiners have been in recently, and if there was any sort of compulsion there, from that front, to true up some of these loans as well.  


Jean Strickland:

No.


Dennis S. Hudson III:

No, we’re…


Jean Strickland:

We’re in control.


Dennis S. Hudson III:

No, these are decisions that we made this quarter and that’s all we can say on that.


David Bishop:

Thank you.


Operator:

This excerpt taken from the SBCF 8-K filed Apr 30, 2007.

Our next question comes from David Bishop from Stifel Nicolaus, please go ahead.


David Bishop:

Thanks, good morning gentlemen.


Dennis S. Hudson:

Good morning Dave.


David Bishop:

Hey Bill, I was wondering on page seven of the presentation, the balance sheet impact of FAS 157 and 159, if I am looking at it incorrectly.  Is that on a proforma basis?  Because when I look at the securities balance in the release, you have $418 million and I’m showing that $318 million.  Is that implying that this was post-quarter sale with some of those trading securities?


William R. Hahl:

Correct. Yeah, that would be. Probably I shouldn’t have labeled that as March 31—other than a proforma. Right, that is probably a 10-day to a two week period after quarter-end where we actually move things around.


David Bishop:

This excerpt taken from the SBCF 8-K filed Jan 30, 2007.

Our next question comes from David Bishop with Stifel Nicolaus; please state your question.


David Bishop:

Thank you. Hey, good morning gentlemen.


Dennis Hudson:

Morning David.


William Hahl:

Morning.


David Bishop:

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki