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STUART, FL., April 23, 2009 ¿ Seacoast Banking Corporation of Florida (NASDAQ-NMS: SBCF), a bank holding company whose principal subsidiary is Seacoast National Bank, today reported a first quarter 2009 net loss of $4.8 million compared to a net loss of $22.6 million for the fourth quarter of 2008. Including the impact of preferred stock of $937,000, the net loss applicable to common shareholders was $5.7 million or $0.30 per average common diluted share for the first quarter, compared to a net loss of $22.7 million or $1.19 per average common diluted share for the fourth quarter of 2008. Credit costs which were improved over the final quarter of 2008 remained high, while core earnings increased significantly due to reduced deposit costs, margin improvements, improved residential mortgage production and reductions in expenses.

Other significant metrics for the first quarter 2009 include:
¿ The estimated total risk based capital ratio was 14.0 percent, unchanged from year end 2008;
¿ Tangible common equity to risk weighted assets was 7.08 percent unchanged from year end 2008;
¿ Liquidity remains strong and stable, supported by a diverse local retail and commercial deposit base, no overnight borrowings and over $800 million in excess liquidity sources available at March 31, 2009;
¿ Loan loss reserves increased to 1.99 percent compared to 1.22 percent at the end of the first quarter 2008;
¿ Total revenues were $22.9 million in the first quarter, up $976,000 or 17.8 percent annualized compared to the fourth quarter 2008;
¿ Residential mortgage applications increased by 121 percent from the fourth quarter of 2008 and 85 percent from the same quarter one year ago;
¿ A total of 2,581 new personal checking accounts were opened in the first quarter 2009, an increase of 30.9 percent compared to the fourth quarter 2008 and 11.3 percent increase over the results for the first quarter 2008;
¿ Average cost of deposits for the first quarter totaled 1.79 percent, down 34 basis points from the fourth quarter of 2008.

¿We are beginning to see some signs of stability for residential real estate in our markets. Transactions have increased and inventories are headed down, despite the continued large volume of foreclosures. Most importantly, home prices are now showing some signs of firming in our markets and have achieved pricing levels associated with affordability last seen prior to the housing bubble,¿ said Dennis S. Hudson, III, Chairman and Chief Executive Officer. ¿While we made real progress this quarter with improved core earnings, we continued to experience relatively high levels of credit stress, which will likely continue for a while as the economy finds a bottom.¿

Nonaccruing loans grew by $22.4 million from year end to $109.4 million or 6.7 percent of loans outstanding, in part due to stressed market conditions and also a ramping up of efforts to pursue troubled debt restructures with commercial and retail mortgage borrowers during the quarter. The Company will pursue loan restructures in selected cases where we expect to achieve better liquidation values than may be expected through other traditional collection activities. During the quarter, the Company also worked with retail mortgage customers, when possible, to achieve lower payment structures in an effort to avoid foreclosure. A total of 93 applications were received seeking restructured mortgages compared to 37 in the fourth quarter 2008. Troubled debt restructurings are part of the Company¿s loss mitigation activities and can include rate reductions, payment extensions and principal deferment. Company policy requires troubled debt restructures be classified as nonaccrual loans until (under certain circumstances) performance can be verified (typically six months). Troubled debt restructures included in nonperforming loans totaled $32.9 million at March 31, 2009, of which $24.0 million were current in accordance with restructured terms. At March 31, 2009, nonaccruing loans which totaled of $109.4 million have been written down by approximately $49.5 million or 31 percent of their original loan balance (including specific impairment reserves).

The unprecedented housing market decline and its impacts in Florida have for some time affected the Company¿s performance. Over the past two years, the Company has aggressively reduced its exposures to loan product types most exposed to the housing market decline. For example, residential construction and land development loans which peaked at 20.2 percent of loans in the first quarter of 2007 have been reduced to 3.6 percent of loans (excluding loans classified as nonaccrual) as of March 31, 2009. Other loan product types have been reduced as well, including commercial construction loans. These reduced exposures have resulted from timely and aggressive collection efforts, charge-offs and the sale of distressed loan assets. Loan sales over the past two years have totaled $119 million at an average price of approximately 64 percent of outstanding balances sold. These activities, undertaken early in the housing downturn, resulted in high levels of chargeoffs, but have in turn achieved a substantial reduction in risk to further valuation declines. The cumulative loan charge-off rate since the beginning of 2007 is calculated in the table below:
(Dollars in thousands)
Cumulative charge-offs since 1/1/07 $104,754* Gross loan balance, 12/31/06 $1,733,111 Cumulative charge-off rate since 1/1/07 6.04% *Including specific loan loss allowances at March 31, 2009.

Going forward, we anticipate loan sales will likely play a lesser role in connection with our loss mitigation efforts as we shift our focus to other strategies, including troubled debt restructures, where appropriate, for smaller commercial and consumer borrowers.

Operating earnings (before the provision for loan losses and income taxes) excluding one-time severance payments of $242,000 for the first quarter of 2009 totaled approximately $4.1 million, up from the $2.5 million earned in the fourth quarter 2008 which excludes one-time expenses totaling approximately $900,000. This improvement results from increased net interest income as a result of lower costs for deposits and other interest bearing liabilities, and decreased noninterest expenses the result of the implemented overhead reductions announced at year end.

Net interest income (on a tax equivalent basis) was $18.2 million, up $706,000 or 16.1 percent annualized from the fourth quarter 2008. The increase is a result of lower deposit costs and lower rates paid on all interest bearing liabilities, partially offset by a decline in loans, lower loan yields and higher nonperforming loans. The net interest margin increased 12 basis points and totaled 3.44 percent compared to the fourth quarter 2008.

Noninterest income, excluding securities gains and losses totaled $4.8 million, up $269,000 or 6.0 percent linked quarter on improved mortgage banking fees, merchant income, marine finance fees, debit card and deposit based EFT income. The revenues from these sources were partially offset by weaker revenues from wealth management, and with the economy in recession and unemployment increasing, the Company expects fees from this business to remain weak until the economy begins to improve.

Noninterest expenses totaled $19.1 million, down $1.3 million compared to the fourth quarter 2008. Total noninterest expenses, excluding legal and FDIC insurance premiums, declined approximately $859,000 or 4.9 percent, versus comparable noninterest expense amount for the first quarter of 2008. As a result of loan sales last year and the decline in the number of loans in litigation, the Company announced last quarter it believed legal costs would be lower in 2009. Legal costs remained elevated in the first quarter, but were modestly lower compared to the fourth quarter 2008. Salaries and benefits (excluding one time severance payments) for the first quarter 2009 declined $1.5 million or 15.4 percent from a year ago. Further overhead reductions are projected and should provide additional earning¿s benefit going forward in the range of $1.3 to $1.5 million.

The Company¿s retail core deposit focus has produced strong growth in core deposit customer relationships when compared to the prior year¿s and last quarter¿s results, and has resulted in increased balances which offset planned certificates of deposit runoff in the first quarter 2009. The improved deposit mix and lower rates paid on interest bearing deposits during the first quarter reduced the overall cost of deposits to 2.11 percent, 39 basis points lower than in the fourth quarter 2008.

Lower interest rates and increased emphasis on residential lending significantly increased this quarter¿s mortgage originations and mortgage banking fees. A total of 383 applications were taken in the first quarter 2009 for total loans of $92 million, an increase of 210 applications and $54 million of loans from the fourth quarter. Closed mortgage loans totaled $38 million for the quarter, $15 million higher than in the fourth quarter 2008. A total of $20.5 million of residential mortgage loans were sold in the first quarter 2009, which increased mortgage banking income by $315,000 or 171.2 percent compared with the fourth quarter 2008, and a $131,000 or 35.6 percent increase over the same period in 2008.

While total deposits at quarter end March 31, 2009 were up slightly from year end 2008, the mix of deposits improved with certificates of deposits declining $28 million, other lower cost interest bearing deposits (¿core¿) increasing $25 million or 12.5 percent annualized, and demand deposits increasing $7 million or 9.5 percent annualized compared to the fourth quarter 2008. The average cost of core deposits during the first quarter was 1.10 percent, down 43 basis points from the fourth quarter. Certificate of deposit rates paid were also lower compared to the fourth quarter and totaled 3.25 percent during the first quarter, a decline of 34 basis points. The average cost of total interest liabilities was down 47 basis points compared to the fourth quarter at 2.05 percent.

Average deposits totaled $1.81 billion for the first quarter 2009, $30 million lower compared to the fourth quarter 2008, due to the shifting of public fund customer deposit balances in late December to sweep repurchase agreements. Total average deposits plus sweep repurchase agreements totaled $1.96 billion during the first quarter-end 2009, up $39 million or 8.2 percent annualized compared to the fourth quarter. Average deposits declined $103 million or 5.4 percent compared to the same period in 2008 as a result of deposit declines in the Company¿s central Florida region resulting from slower economic growth affecting the second half of 2008. Average noninterest bearing deposits totaled $274.4 for the first quarter 2009, nearly unchanged from the fourth quarter 2008, but a decline of $49.0 million compared to the same period in 2008. As a result of the low interest rate environment, customers have deposited more funds into certificates of deposit, while maintaining lower average balances in savings and other liquid deposit products that pay no interest or a lower interest rate. This has been partially offset by our successful retail core deposit strategy implemented in early 2008. As reported throughout 2008, the Company has experienced strong growth in core deposit customer relationships. Total new bank households are up 20.7 percent annualized compared to the fourth quarter 2008. New personal checking relationships have increased as a result of the retail deposit growth strategy, which has improved market share, increased average services per household and decreased customer attrition. New personal checking household deposit balances for the first quarter increased $27 million or 7 percent linked quarter and average services per household have increased by 14 percent compared to a year ago.

Seacoast will host a conference call on Friday, April 24, 2009 at 9:30 a.m. (Eastern Time) to discuss the earnings results and business trends. Investors may call in (toll-free) by dialing (866) 712-7678 (access code: 5861577; leader: Dennis S. Hudson). Charts will be used during the conference call and may be accessed at Seacoast¿s website at www.seacoastbanking.net by selecting ¿Presentations¿ under the heading ¿Investor Services¿. A replay of the call will be available for one month, beginning the afternoon of April 24, by dialing (877) 213-9653 (domestic), using the passcode 5861577. Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast¿s website at www.seacoastbanking.net. The link is located in the subsection ¿Presentations¿ under the heading ¿Investor Services¿. Beginning the afternoon of April 24, 2009, an archived version of the webcast can be accessed from this same subsection of the website. The archived webcast will be available for one year.

Seacoast Banking Corporation of Florida has approximately $2.3 billion in assets. It is one of the largest independent commercial banking organizations in Florida, headquartered on Florida¿s Treasure Coast, one of the wealthiest and fastest growing areas in the nation.


Cautionary Notice Regarding Forward-Looking Statements

This press release contains ¿forward-looking statements¿ within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, cost savings, enhanced revenues, economic and seasonal conditions in our markets, and improvements to reported earnings that may be realized from cost controls and for integration of banks that we have acquired, as well as statements with respect to Seacoast¿s objectives, expectations and intentions and other statements that are not historical facts. Actual results may differ from those set forth in the forward-looking statements.

Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance or achievements of Seacoast to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. You should not expect us to update any forward-looking statements.

You can identify these forward-looking statements through our use of words such as ¿may,¿ ¿will,¿ ¿anticipate,¿ ¿assume,¿ ¿should,¿ ¿support¿, ¿indicate,¿ ¿would,¿ ¿believe,¿ ¿contemplate,¿ ¿expect,¿ ¿estimate,¿ ¿continue,¿ ¿further¿, ¿point to,¿ ¿project,¿ ¿could,¿ ¿intend¿ or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the effects of future economic and market conditions, including seasonality; governmental monetary and fiscal policies, as well as legislative, tax and regulatory changes; changes in accounting policies, rules and practices; the risks of changes in interest rates on the level and composition of deposits, loan demand, liquidity and the values of loan collateral, securities, and interest sensitive assets and liabilities; interest rate risks, sensitivities and the shape of the yield curve; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market areas and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the Internet; and the failure of assumptions underlying the establishment of reserves for possible loan losses. The risks of mergers and acquisitions, include, without limitation: unexpected transaction costs, including the costs of integrating operations; the risks that the businesses will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; the potential failure to fully or timely realize expected revenues and revenue synergies, including as the result of revenues following the merger being lower than expected; the risk of deposit and customer attrition; any changes in deposit mix; unexpected operating and other costs, which may differ or change from expectations; the risks of customer and employee loss and business disruption, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures and solicitations of customers by competitors; as well as the difficulties and risks inherent with entering new markets.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2008 under ¿Special Cautionary Notice Regarding Forward-Looking Statements¿ and ¿Risk Factors¿, and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC¿s Internet website at http://www.sec.gov.