Seacoast Banking falls to 52-week low on $8.4M loan loss
Shares of Seacoast Banking Corporation of Florida (Nasdaq: SBCF) have hit a new 52-week low on news before the opening of a $8.4 million loan loss provision in the third quarter.
Seacoast National Bank, a subsidiary of the Stuart, Fla.-based holding company, announced that it expects a loan loss provision of $8.4 million due to the softening of the real estate market in South Florida.
“Sales activity for new residential real estate products continued to soften over the summer months in Florida after improving somewhat earlier in the year,” said chairman and CEO Dennis Hudson III in a statement. “While residential conditions may not improve in the near term, our deep customer franchise remains solid and will continue to produce quality growth in the months ahead.”
The bank also reported that nonperforming loans will increase to 2.4% of all loans at quarter-end. The nonperforming loans will primarily consist of residential development loans secured with single family homes, lots and land.
Complete quarter-end results will be released after the close on Oct. 23.
At 3:27 p.m. ET Seacost Banking Corporation of Florida (SBCF) shares had retreated $1.46, or 9%, to $14.54. The previous 52-week low of $15.56 was set on Aug. 1. The 52-week high of 29.97 was touched on Oct. 18.
