A N N U A L R E P O R T

Transcription

1 2008 ANNUAL REPORT

2 2008 ANNUAL REPORT Dear Shareholders, I am certain that you have watched, as I have, the almost surreal changes that have swept across the global economy over the past year. Bankruptcies and deteriorating confidence in some of our oldest and most recognized financial institutions provide ample reason for us all to pause and assess our financial lives. While a multitude of sectors in our economy, and worldwide, will continue to feel the impact of this recession well into 2009, I take comfort in the fact that Seaside is fundamentally different from most banks. Seaside s core business strategy is not product-specific, promotion of growth for growth s sake. Every Client Advisor at Seaside approaches each new piece of business not just as a transaction, but as part of an ongoing relationship, beneficial to our clients and to Seaside. We believe our 2008 results, during these historically difficult economic times, validate the soundness of our business model: Our deposits are growing on pace with projections We are actively extending credit in the markets we serve and have outstanding credit quality in our existing portfolio We continue to implement our aggressive, but controlled, growth strategy across the state of Florida We are located in attractive markets with strong industry organic growth rates and above-average wealth characteristics We invest opportunistically in people and businesses that are synergistic with, and a complement to, our long-term value proposition We have a sophisticated and robust product set that rivals large regional financial institutions We have hand selected the best bankers in Florida Our Client Advisors operate in an open environment where they are able to remain product neutral and are not limited to sell within a specific line of business We are well capitalized and have been selective in choosing additional investors The bank is operating in a safe and sound manner, with sound operating procedures and compliant systems While I am pleased with our 2008 results, we are ready to work hard to continue to grow Seaside in this recession. I am confident we have a tremendous advantage with our highly experienced, talented group of Client Advisors and Wealth Management professionals, in addition to our office and support professionals. Without their hard work and dedication on a daily basis, none of our current or future results would be possible. We are grateful for the opportunity to build Seaside into something special. On behalf of all the Directors and professionals of Seaside National Bank & Trust, I want to thank you for your continued support. Please do not hesitate to call me directly with any questions or concerns. Sincerely, Gideon T. Haymaker 2

3 SEASIDE NATIONAL BANK & TRUST S CULTURAL VALUES REFLECT OUR BELIEFS ABOUT HOW WE CONDUCT BUSINESS. THESE VALUES SET THE STANDARD BY WHICH WE WORK, BUT THEY ALSO ESTABLISH THE PERCEPTION OF SEASIDE NATIONAL BANK & TRUST HELD BY ALL OF OUR CONSTITUENTS, CLIENTS, PROFESSIONALS, SHAREHOLDERS AND THE COMMUNITY. 3

4 2008 ACCOMPLISHMENTS YEAR IN REVIEW This has been an exciting, busy and extremely rewarding year for Seaside. We experienced tremendous growth in our deposits, loans, total assets and assets under management as well as raised capital in an increasingly difficult economic environment. DEPOSITS GREW 267.5% FROM $72.2 MILLION TO $265.4 MILLION LOANS GREW 263.1% FROM $58 MILLION TO $210.6 MILLION TOTAL ASSETS GREW 188.5% FROM $127.3 MILLION TO $367.3 MILLION ASSETS UNDER ADVISEMENT GREW 72.6% FROM $56.3 MILLION TO $97.1 MILLION $5.4 MILLION OF NEW CAPITAL FROM AN INVESTMENT ISSUANCE To support our growth, our physical office network more than doubled, and we experienced a 100 percent increase in the number of Seaside associates, including four key hires to lead our newly expanded regions. In early 2008, we added two well-known and respected leaders to our Board of Directors. Seaside now has twelve active and committed Board members who meet monthly to provide oversight and direction to the bank s executive management team. In mid-2008, we expanded our product offerings to include indirect lending through our Dealer Financial Services group. We also launched a new advertising campaign and a Web site redesign. In June, we received notification that our name Seaside National Bank & Trust and our design mark are now registered in the U.S. Patent and Trademark office. We continued to invest in our systems and technology to ensure we maintain integrated and flexible technology. In an ongoing effort to be financially prudent, we developed a centralized purchasing process. We realized an almost immediate cost savings for the processes and procedures that were established. Throughout the year we were fortunate to receive a number of accolades, which validated our hard work and success. 4

5 NEW MARKETS We added seven new offices in SARASOTA SARASOTA OFFICE OPENED IN JANUARY 1999 MAIN STREET SARASOTA, FLORIDA SARASOTA PALM BEACH GARDENS PALM BEACH GARDENS OPENED IN APRIL 4290 PROFESSIONAL CENTER DRIVE SUITE 201 PALM BEACH GARDENS, FLORIDA WINTER PARK WINTER PARK OPENED IN APRIL 700 WEST MORSE BOULEVARD SUITE 100 WINTER PARK, FLORIDA WINTER PARK TAMPA/ WESTSHORE TAMPA/WESTSHORE OFFICE OPENED IN JULY 5426 BAY CENTER DRIVE SUITE 175 TAMPA, FLORIDA STUART STUART OFFICE OPENED IN AUGUST 309 SOUTHEAST OSCEOLA STREET SUITE 106 STUART, FLORIDA PALM BEACH GARDENS FT. LAUDERDALE FT. LAUDERDALE OFFICE OPENED IN NOVEMBER 450 EAST LAS OLAS BOULEVARD SUITE 150 FT. LAUDERDALE, FLORIDA PALM BEACH PALM BEACH OFFICE OPENED IN DECEMBER 420 ROYAL PALM WAY SUITE 201 PALM BEACH, FLORIDA TAMPA BAY THE BOCA RATON OFFICE IS SCHEDULED TO OPEN ON JANUARY 22, 2009 FOLLOWED BY THE PONTE VEDRA BEACH OFFICE ON JANUARY 29, STUART 5

6 ASSOCIATE GROWTH Seaside doubled our team with 100 percent growth in new associates. We grew from 63 associates on January 1, 2008, to 126 as of December 31, SENIOR LEADERSHIP TEAM Seaside hired four new Regional Presidents GENE CARSON TIM GOERING DAVE HUNTER MARK DALZIEL Gene Carson Sarasota Prior to joining Seaside, Mr. Carson worked at SunTrust Investment Services from 1994 to While at SunTrust, he was a financial consultant for eight years and was promoted to a regional manager for the last five years of his SunTrust experience. Prior to his tenure at SunTrust, he held numerous management positions with the Kroeger Company in Missouri and Florida during a 16-year time frame. Mr. Carson received a Bachelor of Science from the University of Missouri. Tim Goering South Florida Mr. Goering joined Seaside from GenSpring Family Office where he served as a Senior Vice President. He was responsible for coordinating new relationships with ultra-high net worth families seeking guidance and advice relating to investment management, estate and tax planning and multi-generational wealth planning. During his tenure at GenSpring, Mr. Goering was instrumental in increasing the firm to more than ten times its original size. He also served as a Financial Advisor with Bernstein Investment Research and Management, where he developed new high net worth client relationships. Mr. Goering received a Bachelor of Science from the United States Naval Academy. Mr. Goering holds the military rank of Major as an aviator in the United States Marine Corps. Dave Hunter Tampa Mr. Hunter has 30 years of experience in financial services. Throughout his career, Mr. Hunter has held a number of positions with increasing responsibility. During his tenure at SunTrust Bank in Orlando, he served as Business Banking Region Manager, Retail Bank Group President, and Private Banking Region Manager. In 2001, Mr. Hunter was named manager of SunTrust Private Banking company-wide and relocated to corporate headquarters in Atlanta with his family. In his three-year tenure as manager of SunTrust Private Banking, Mr. Hunter led the development and implementation of the SunTrust Private Banking strategy in 20 regions throughout SunTrust. In 2005, Mr. Hunter was named Chairman, President & CEO of NCBS, an international retail bank consulting practice headquartered in Memphis. Mr. Hunter served in that capacity, as well as Chairman of Prime Performance, Inc., a nationally recognized customer satisfaction survey and reporting company, until his retirement from SunTrust in October Mr. Hunter received a Bachelor of Science from Brigham Young University. Mark Dalziel North Florida Mr. Dalziel has 35 years of experience in the financial services industry. He held previous management positions with JP Morgan Private Bank, Northern Trust, Bank Boston and SunTrust Bank. Mr. Dalziel currently serves on the Board of Directors for Beach Residents Actively Supporting the Symphony (BRASS). In addition, he is an active member of the Sawgrass Country Club. Mr. Dalziel received a Bachelor of Science degree from Southern Illinois University. He also attended the ABA National Trust School and the Graduate Trust School at Northwestern University.

7 SEASIDE S BOARD OF DIRECTORS In 2008, we added a corporate responsibility committee to the Board to further strengthen our corporate governance structure. In addition, we added two new board members, Rick Walsh and Ed Timberlake. Rick Walsh Director Mr. Walsh is President of the KnobHill Group, an investment and strategic counseling company. Prior to establishing the KnobHill Group, he served as Senior Vice President, Corporate Affairs of Darden Restaurants, Inc. (DRI) and was a founding member of the leadership team that took Darden public in He also served as a member of Darden s Executive Committee. Mr. Walsh currently serves as Chairman of the University of Central Florida Board of Trustees and also serves on the College of Business Advisory Council for the university. He serves on the Hubbs SeaWorld Research Institute Board of Trustees; Florida Chamber of Commerce; National Employment Policy Institute; the Mennello Museum of Art; the MD Anderson Council of Governors; Edyth Bush Charitable Foundation and several emerging company Boards of Directors. He is past Chairman of the Board of the Florida State Chamber of Commerce, former Board member of the Greater Orlando Chamber of Commerce and the National Restaurant Association. He formerly served on the Governor s Florida Tourism Council; the Governor s Taskforce on Affordable Healthcare; Enterprise Florida; and the Metro-Orlando Economic Development Commission. In 2003, he was chairman of Orange County s Mobility 20/20 transportation initiative. Mr. Walsh has been recognized as Businessman of the Year by the Orlando Business Journal; one of Florida s 100 Most Influential by Florida Trend Magazine; 25 Most Powerful People in Central Florida by the Orlando Sentinel; and 50 Most Powerful People in Orlando by Orlando Magazine. Mr. Walsh received a Bachelor of Arts and a Master of Public Policy from the University of Central Florida. Ed Timberlake Central Florida Board Chair & Director Mr. Timberlake joined Seaside from Bank of America after he retired as President of Bank of America Central Florida, a position that he held for seven years. He had been with Bank of America and predeces sor organizations since He has resided in Orlando since November 1994 and previously was in Miami for 16 years. He is currently a member of the following boards: Central Florida Commission on Homelessness; Floridians for Smart Growth; myregion.org; Central Florida Partnership; Heart of Florida United Way; American Red Cross; Orlando Performing Arts Center; Orlando Regional Chamber of Commerce; Community Foundation of Central Florida; YMCA; BETA; and the Jewish National Fund. Mr. Timberlake s past community involvement includes Metro Orlando Economic Development Commission; March of Dimes; Central Florida Innovation Corporation; Business Force, Inc.; Florida 2012; Enterprise Florida Board; Florida Tax Watch Board and the Technology/Advisory Group for the Orange County Clerk of the Court. Mr. Timberlake was honored by the Jewish National Fund at its Tree of Life Dinner in October It is the association s highest honor a humanitarian award given in recognition of outstanding community involvement, professional leadership, and compassionate service. He also has been recognized as one of Orlando s Most Powerful People in Orlando by Orlando Magazine. Mr. Timberlake received a Bachelor of Science degree from Adelphi University in Garden City, New York. RICK WALSH ED TIMBERLAKE DEALER SERVICES GROUP In July, Seaside expanded our services to include indirect lending through our Dealer Services Group. This business group provides consumer car loans through dealer financing. Currently, Seaside has an indirect lending relationship with approximately 50 automotive dealers throughout Florida. The dealers consist primarily of high-end foreign luxury manufacturers. 7

8 ADVERTISING CAMPAIGN Our Unique Solution campaign launched in late 2007 and continued throughout In this campaign, we utilized our tag line your neighbor. your bank. as a way to demonstrate our knowledge of our clients personal interests, the local community and their business needs. Our main campaign objective was to emphasize our brand promise that we are client-focused and knowledgeable. Our goal is to get to our clients as individuals only then will we be able to advise them on the financial services that are best suited for them, their family or their business. Just as every Seaside client is unique, every financial solution we provide is personalized to our clients individual situation. The ads focus on our clients instead of Seaside bankers or our products, which further demonstrates our client-centric approach. The American Banker s Association recognized our campaign with the first place award for the customer acquisition category for banks with assets under $500 million Unique Solutions Consumer Campaign 2008 Unique Solutions Commercial Campaign 8

9 WEB SITE REDESIGN In July, we relaunched our Web site at with enhanced user functionality, virtual tours, map locator and photos of each office location, information about Seaside s Management Team, Board of Directors, Client Advisors, Residential Lending officers and Wealth Management professionals in each market. Our new site also contains comprehensive information about our product offerings. Home About Seaside NB&T Locations Careers Customer Service your neighbor. your bank. PERSONAL BANKING BUSINESS BANKING WEALTH MANAGEMENT RESIDENTIAL MORTGAGE AT SEASIDE NATIONAL BANK & TRUST, IT IS ALL ABOUT YOU. personal online banking sign in learn more enroll your needs. your opportunities. your dreams. business online banking sign in learn more trust online banking sign in learn more brokerage online banking sign in learn more We ve created a bank in Florida that always puts people first. At Seaside, you re never just a client, you re the reason we re here, and you ll feel the difference as soon as you walk in the front door. Our goal is to get to know you only then will we be able to advise you on the financial services that are best suited for you, your business and your family. At Seaside, you are never just a client, you re the reason we re here. Privacy Policy Disclosure Security Information AWARDS Seaside received the following awards in 2008: DOWNTOWN ORLANDO PARTNERSHIP S 2008 GOLDEN BRICK AWARD FOR THE DESIGN AND FINANCIAL IMPACT OF OUR DOWNTOWN OFFICE FIRST PLACE AWARDED AS ORLANDO BUSINESS JOURNAL S 2008 BEST PLACE TO WORK FIRST PLACE IN THE AMERICAN BANKER S ASSOCIATION CUSTOMER ACQUISITION MARKETING AWARD IN THE LESS THAN $500 MILLION IN ASSETS CATEGORY RECOGNITION Listed below is a highlight of select media recognition: IDENTIFIED AS ORLANDO S FASTEST GROWING BANK BY THE ORLANDO BUSINESS JOURNAL FOR A 458.8% INCREASE IN DEPOSITS FROM FIRST QUARTER 2007 TO THE SAME TIME IN 2008 GIDEON HAYMAKER WAS NAMED ORLANDO BUSINESS JOURNAL S TOP 10 BUSINESSMEN TO WATCH IN 2008 ED TIMBERLAKE WAS NAMED ORLANDO MAGAZINE S 28TH MOST POWERFUL PERSON IN CENTRAL FLORIDA 9

10 2008 FINANCIALS

11 2008 FINANCIALS loan portfolio composition $82,498,000 COMMERCIAL & INDUSTRIAL TOTAL PORTFOLIO $213,159,000 $55,371,000 COMMERCIAL REAL ESTATE $31,730,000 RESIDENTIAL REAL ESTATE $30,687,000 CONSUMER & HOME EQUITY $12,873,000 CONSTRUCTION & DEVELOPMENT LOANS OUTSTANDING $7,378,000 $58,009,000 $210,267,000 ASSETS $55,806,000 $127260,000 $367,296,000 DEPOSITS $3,056,000 $72,239,000 $265,350,000 ASSETS UNDER MANAGEMENT $0 $56,250,000 $97,120, ( millions )

12 SEASIDE NATIONAL BANK & TRUST AND SUBSIDIARY Consolidated Balance Sheets ($ in thousands, except per share amounts) ASSETS At December 31, Cash and due from banks $ 106 1,350 3,511 Federal funds sold 21,618 13, Total cash and cash equivalents $ 21,724 14,705 3,868 Securities available for sale 23,116 45, ,379 Loans held for sale 1,778 25,865 Loans, net of allowance for loan losses of $116, $834 and $2426 7,378 56, ,762 Accrued interest receivable ,834 Premises and equipment, net 863 3,345 8,470 Restricted securities 1,542 1,625 2,515 Deferred income taxes 505 2,370 7,628 Other assets Total assets $ 55, , ,296 LIABILITIES Noninterest-bearing demand deposits 1,253 15,070 24,520 NOW deposits 505 7,318 19,791 Money-market and savings deposits 1,248 18,153 48,084 Time deposits 50 31, ,955 Total deposits $ 3,056 72, ,350 Other borrowings 3,576 50,144 Accrued interest payable Official checks ,206 Other liabilities 648 1,639 3,000 Total liabilities $ 3,765 78, ,416 STOCKHOLDERS EQUITY Preferred stock, 2,000,000 shares authorized, 500,000 shares issued and outstanding 5,000 5,000 5,000 Common stock, $5 par value; 10,000,000 shares authorized, 4,903,200, 4,908,200 and 5,363,432 shares issued and outstanding, respectively 24,516 24,541 26,817 Additional paid-in capital 23,368 23,633 27,050 Accumulated deficit (794) (3,953) (12,122) Accumulated other comprehensive loss (49) (121) (865) Total stockholders equity $ 52,041 49,100 45,880 Total liabilities & stockholders equity $ 55, , ,296 12

13 SEASIDE NATIONAL BANK & TRUST AND SUBSIDIARY Consolidated Statements of Operations (In thousands) INCOME Interest income: At December 31, Loans $ 19 2,239 5,660 Securities 160 2,396 3,764 Other Total interest income $ 474 5,278 9,699 Interest expense: Deposits 6 1,450 4,214 Other borrowings Total interest expense $ 6 1,488 4,504 Net interest income 468 3,790 5,195 Provision for loan losses ,636 Net interest income after provision for loan losses $ 352 3,047 3,559 Noninterest income: Service charges on deposit accounts Wealth management income Gain on sales of loans held for sale Other Total noninterest income $ Noninterest expenses: Salaries and employee benefits 688 5,420 11,453 Occupancy and equipment 96 1,472 3,540 Data processing Professional fees Advertising Other general and administrative ,251 Total noninterest expenses $ 984 8,322 17,552 Loss before income tax benefit (632) (4,982) (12,977) Income tax benefit (235) (1,823) (4,808) Net loss $ (397) (3,159) (8,169) 13

14 BOARD OF DIRECTORS THOMAS YOCHUM Chairman of the Board Seaside National Bank & Trust CHARLES CHAS BAILES, III Chairman & CEO ABC Fine Wine & Spirits STEVEN BARNETT Principal Capitalspan, LLC ROY B. SKIP DALTON, JR. President & CEO Dalton Hotel Corp. Principal, Dalton & Carpenter, PA GLEN DAVIS President & CEO Schuff Steel-Atlantic, Inc. ANIL DESHPANDE Co-Founder Park Square Homes MICHAEL FESS Founder & Owner Equity Partners, Inc. GIDEON HAYMAKER President & CEO Seaside National Bank & Trust THOMAS O SHANE Retired Banker ED TIMBERLAKE Chairman Seaside National Bank & Trust Central Florida Board of Directors CHARLES VALENTINE Retired Banker RICK WALSH President KnobHill Group 14

15 SENIOR LEADERSHIP GIDEON HAYMAKER President & CEO CARY BERMAN Director of Residential Lending GENE CARSON Sarasota President MARK DALZIEL North Florida President NANCY ELBERG Director of Human Capital TIM GOERING South Florida President TOM GRANT Chief Credit Officer BARRY GRIFFITHS Chief Financial Officer LEA ANNE GROOVER Chief Fiduciary Officer JIM HINDMAN Chief Operations Officer DAVE HUNTER Tampa Bay President LARA LEE Chief Marketing Officer TIM MYERS Central Florida President PHILIP RICH Chief Market Strategist STUART SCOTT Director of Wealth Management 15

16 seasidebank.com CENTRAL FLORIDA SEASIDE PLAZA 201 SOUTH ORANGE AVENUE SUITE 1350 ORLANDO, FL p executive offices SEASIDE PLAZA OFFICE 201 SOUTH ORANGE AVENUE SUITE 100 ORLANDO, FL P FLORIDA MALL 1389 FLORIDA MALL AVENUE ORLANDO, FL p LAKE MARY 707 PLATINUM POINT SUITE 1021 LAKE MARY, FL p WINDERMERE 4705 S. APOPKA-VINELAND ROAD SUITE 120 ORLANDO, FL p WINTER PARK 700 WEST MORSE BOULEVARD SUITE 100 WINTER PARK, FL p SOUTH FLORIDA TAMPA BAY SOUTHWEST FLORIDA LAS OLAS 450 EAST LAS OLAS BOULEVARD SUITE 150 FT. LAUDERDALE, FL PALM BEACH 420 ROYAL PALM WAY SUITE 201 PALM BEACH, FL PALM BEACH GARDENS 4290 PROFESSIONAL CENTER DR SUITE 201 PALM BEACH GARDENS, FL p STUART 309 SE OSCEOLA STREET SUITE 106 STUART, FL p TAMPA BAY 5426 BAY CENTER DRIVE SUITE 175 TAMPA, FL p SARASOTA 1999 MAIN STREET SARASOTA, FL p FUTURE LOCATIONS: BOCA RATON PONTE VEDRA BEACH