Welcome to the Seacoast First Quarter Conference Call. My name is Christine, and I will be the operator for today’s call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session. Please note that this conference is being recorded. I will now turn the call over to Mr. Dennis Hudson. You may begin.

Thank you very much, Christine and welcome everybody to our conference call this morning. As always before we begin, we direct your attention to the statement contained at the end of our press release, regarding forward statements. During the call we are going to be talking about certain issues that constitute forward-looking statements within the meaning of the Securities and Exchange Act. And accordingly our comments are intended to be covered within the meaning Section 27A of that act. With me today is Will Hahl our CFO and David Houdeshell our Chief Credit Officer. Today, we are going to be discussing our earnings results for the quarter. We will have few comments as well on the outlook for the year. And of course we’ll also discuss our just announced acquisition of BankFIRST, we’re quite excited about the acquisition that’s our first since 2006 and one that I believe is going to be very important to our future. But first let me just give you a brief overview of the quarter. By the way we have posted slides on our website on seacoastbanking.com under presentations. During our conversation today I will be referring to those slides. Last night we reported earnings of $0.09 per share up from $0.06 per share the prior year and up from $0.03 in the linked quarter. This improvement was due of course to better performance, which we’re going to talk about in a minute as well as the redemption at year-end of our preferred stock outstanding, which of course freed up additional income to be attributed to common shareholders. Our pre-tax income was up 83% over the prior year and this perhaps is a better way to compare our performance, because as you well know we were not accruing any tax expense last year. Pre-tax income…

Thank you. We will now begin the question-and-answer session. (Operator Instructions). Our first question comes from Scott Valentin from FBR Capital Markets. Please go ahead.

Good morning and thanks for taking my question. Just with regard to the cost saves you just spoke about I guess $1.4 million was previously announced. And I guess is the $1.9 million in addition to the $1.4 million? And then I know you also mentioned a $2.3 million, don’t know if that was the total cost saves you expect and just I assume that’s pre-acquisition and maybe what timeframe you expect to realize those cost saves?

The answer is yes to all your questions. The $1.9 million is an addition to the $1.4 million.

Okay. And in terms of timing of kind of the cost save strategies?

Well, the $1.4 million was executed at the end of the first quarter. So its impact will be felt, full effect beginning in the second quarter. $1.9 million has been affected recently and will take effect kind of half way through the second quarter and so we’ll get a partial effect in Q2 and then full effect of both in the Q3. And I think we indicated in the press release that our total expense structure, core expense structure falls below $17.9 million when it’s fully affected per quarter, when it is fully affected. I also indicated on the call that we are also pursuing additional costs out which we’ll be talking about next quarter.

Okay, all right. Thank you very much.

You are welcome.

Thank you. Our next question comes from [Enrique Assetto] from Raymond James. Please go ahead.

Hey good morning guys.

Good morning.

First of all congrats on the deals. I was wondering, I mean how comfortable would you guys be handling more than one deal at a time. I know you guys have had a little bit of overlap before and your capital ratios or [UTC] is going to above an 8 on a pro forma basis. So could you maybe give me some color around that area, will be helpful?

Well I think, we want to be very selective in the work we do on the acquisition front, I talked that great links in my remarks about the impact this acquisition has meaningful in terms of size relative to our size, number one. And number two has a deposit portfolio and the loan portfolio that it is highly complementary and actually accretive in terms of strategically accretive to our focus and our future and so forth. So, we'll continue to focus on franchises that meet that objective. But we've done in the past more than one at the same time and it's something we wouldn't necessarily look away from, no current plans of course, but as we get later in this year we'll be looking what opportunities exist out there, so.

All right. Thanks. That's helpful. And if I could switch back to the quarter, I know you guys said that your pipeline was up at the end of the quarter. And you guys usually provide a commercial loan pipeline breakout, which I didn't see in the press release. Can you maybe give me some color on your pipeline, maybe if you have a number and I guess just put it out there, that would be helpful as well?

Yes, we don't have the number out there. Our pipeline is kind of fluctuated over the last year and a half, but it is beginning to fill up more comprehensively and some of the early stage parts of the pipeline and that's become more consistent. So, we think we're moving into a period where we'll have a little more consistency to our growth and more stable growth. The other impact is that, we moved a lot of problem assets off the balance sheet over the last, since back in the crisis period, but even though in the last 12 months to 18 months. When you look at how some of our problem numbers have come down. And we're now at a point where those numbers are at a low enough level where that impact is kind of stop affecting our growth rate. So, we're feeling more comfortable with what we're going to see more consistent, stable loan growth going forward. It's going to be, I would say comparable to some of the growth we saw this quarter and we'll continue focusing on that. And I think as you look out further in the year and into 2015, I can emphasize enough the acquisition we announced provides a very significant number of new folks into the combined production teams that are going to be very helpful we think for us as we continue to build out our production objectives and goals into 2015.

All right. Well, thank you very much.

Thank you. Our next question comes from Tom Alonso from Mcquarie Group. Please go ahead.

Hey, guys. Good morning, congrats on the deal. Just real quickly on the cost saves any sort of sense on the timing of when those are realized are just sort of through the year, by the end of ‘15, you will be at 100% of the run rate?

Acquisition cost saves is…

Yes, I am sorry. I apologize, yes the acquisition cost saves.

Thanks. No, we are planning on a integration work being done towards the end of this year, but I think we're going to have, way we have looked at, we're planning on having 100% of the cost saves in place in the first quarter of ‘15. So we are looking at them being fully realized in the fiscal year 2015. And the run rate, our goal is to have that the run rate impact basically in January ‘15.

Okay.

If we, for some reasons saw a delay in the approval or integration for any reason which we did not currently see, it could push out a month or two, but that’s kind of the downside risk I would say. So, we are looking to get, pick all of that up in the first quarter.

Okay, great thanks. That’s very helpful. And then I think when you were talking about the acquired portfolio here, you said their loans are a little bit larger than yours and you said it gives you more interest rate. I think you said risk but is that just saying that there is more variable-rate loans in that portfolio?

If that’s what I said, I apologize. I was trying…

I may have heard it wrong, I didn’t think you meant to say that so.

Yes. The actual, obviously the portfolio I was making the point that beyond some of the mix improvements that I referred to, it brings to us obviously a smaller average loan size. So it further granulizes them and diversifies from a size standpoint our combined portfolio. Number two, I said that I thought it helped improve our interest rate risk structure given some of the terms on those loans, the duration of the portfolio like when we look at that. So it helps improve from a diversity standpoint and from a rate risk standpoint we believe.

Great. Okay, thanks. I think I heard that completely wrong. Thank you for that.

Sure, thanks for asking.

Thank you. Our next question comes from Christopher Marinac from FIG Partners. Please go ahead.

Hey thanks, Denny good morning. I Wanted to ask about integration as it pertains to kind of what you have learned from the last acquisitions way back in 2006 kind of what would be the things that you may do differently now than some what you did take look backup pre-crisis?

Well our 2006 acquisition was very similar and then it was a older franchise that had some real core customers and it went extremely well and we worked, I think one thing that we learned in that acquisition was working very closely with the team at the other bank, was very important to maintaining those customers. And that was -- that got us into some of the center parts of the state in some markets where we had no exposure at all. And I think it went extremely well. We had another smaller acquisition a year earlier or 9 months earlier that was in the Orlando market but it was the opposite, it was a bank in Orlando that had been around for fairly short period of time. It had large -- it had more concentrated relationships in the bank, very little in terms of loan portfolio, simply put, was less of a sort of a true deep franchise from a customer standpoint. And that one didn't work out as well for us and so back in ‘05. So, we think this as an excellent partner for us. We like the people, they have tremendously deep relationships with their customers and they’ve been doing this for a very long time. So, we’re looking forward to picking up this customer base and a lot of the leaders, the leader -- basically pretty much the entire leadership team which is going to really help us move the ball forward. So, we think that also in terms of integration risk here, we both use the same vendor for some of our core processing, we think that’s going to make it little easier and that will have a less revenue integration risk. I don’t know if that answered your question, Chris.

No, that’s helpful background. And I guess my other question, just as one as we are doing the math on sub three year payback on the tenure book dilution, what is the accretion back in their earnings that you see in the first couple of years through that and do you get substantially most of that back for that calculation or will it take longer than three years for keep discounts?

Chris, can you speak up that last part?

Sure, I was asking about the discounts as it pertains to the non-accretion that comes back into calculation of the payback period?

I’m sorry, we still didn’t -- we are not...

Telephonically.

Yes, you are breaking up a little bit, if you could just say it one more time? I’m sorry.

Sure. Can you hear me now?

Yes. Much better.

The payback period sub-three years, is there or are there discounts coming back into accretion that is part of this and are you substantially calculating most of the discounts in the next three years?

Well, you mean on the loan book? It’s not really that material, if that’s what you are, in another words…

Okay, yes.

Accretable yield type of things is that what you are getting at. Yes, it’s a small number.

Okay. Sounds good. Thanks.

Thanks Chris.

Thank you. (Operator Instructions). We have no further questions at this time.

Great. Well, thank you very much for attending today. And we look forward to speaking with everybody again next quarter. Thank you.

Thank you. And thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.