• Seacoast Reports First Quarter 2024 Results

    Source: Nasdaq GlobeNewswire / 25 Apr 2024 15:06:49   America/Chicago

    Q1 Highlights Included Impressive Growth in Deposits, Successful Completion of

    Our Expense Initiative, and Building Wealth and Lending Pipelines

    Strong Capital Position Builds Quarter over Quarter

    STUART, Fla., April 25, 2024 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the first quarter of 2024 of $26.0 million, or $0.31 per diluted share, compared to $29.5 million, or $0.35 per diluted share in the fourth quarter of 2023 and $11.8 million, or $0.15 per diluted share in the first quarter of 2023.

    Adjusted net income1 for the first quarter of 2024 was $31.1 million, or $0.37 per diluted share, compared to $31.4 million, or $0.37 per diluted share in the fourth quarter of 2023 and $23.7 million, or $0.29 per diluted share in the first quarter of 2023.

    For the first quarter of 2024, return on average tangible assets was 0.89% and return on average tangible shareholders' equity was 9.55%, compared to 0.99% and 11.22%, respectively, in the prior quarter, and 0.52% and 5.96%, respectively, in the prior year quarter. Adjusted return on average tangible assets1 in the first quarter of 2024 was 1.04% and adjusted return on average tangible shareholders' equity1 was 11.15%, compared to 1.04% and 11.80%, respectively, in the prior quarter, and 0.88% and 10.16%, respectively, in the prior year quarter.

    Charles M. Shaffer, Seacoast's Chairman and CEO, said, “As the complexity of our successful period of sequential acquisitions falls further in the rearview mirror, I was pleased with our focus on organic customer acquisition, which resulted in growth in noninterest-bearing accounts and strong annualized deposit growth of 8%. Over the past 24 months, we have focused on acquiring the best banking talent across Florida, and we are now seeing an accelerated return on that investment. The combination of strategic investments in talent, marketing, and innovative products is driving growth across our markets, and we are exiting the first quarter with robust pipelines across all of our businesses.”

    Shaffer added, “We are well positioned at this point, with the completion of our expense initiative, fortress balance sheet with industry-leading capital levels, ample liquidity, and an incredibly engaged and excited banking team, we are primed to continue to take market share across one of the strongest markets in the country.”

    Financial Results

    Income Statement

    • Net income in the first quarter of 2024 was $26.0 million, or $0.31 per diluted share, compared to $29.5 million, or $0.35 per diluted share in the fourth quarter of 2023 and $11.8 million, or $0.15 per diluted share in the first quarter of 2023. Adjusted net income1 for the first quarter of 2024 was $31.1 million, or $0.37 per diluted share, compared to $31.4 million, or $0.37 per diluted share, for the prior quarter, and $23.7 million, or $0.29 per diluted share, for the prior year quarter.
    • Net revenues were $125.6 million in the first quarter of 2024, a decrease of $2.6 million, or 2%, compared to the prior quarter, and a decrease of $28.0 million, or 18%, compared to the prior year quarter. Adjusted net revenues1 were $125.6 million in the first quarter of 2024, a decrease of $5.2 million, or 4%, compared to the prior quarter, and a decrease of $26.0 million, or 17%, compared to the prior year quarter.
    • Pre-tax pre-provision earnings1 were $35.7 million in the first quarter of 2024, a decrease of 15% compared to the fourth quarter of 2023 and a decrease of 25% compared to the first quarter of 2023. Adjusted pre-tax pre-provision earnings1 were $42.5 million in the first quarter of 2024, a decrease of 6% compared to the fourth quarter of 2023 and a decrease of 34% compared to the first quarter of 2023.
    • Net interest income totaled $105.1 million in the first quarter of 2024, a decrease of $5.7 million, or 5%, compared to the prior quarter, and a decrease of $26.1 million, or 20%, compared to the prior year quarter. During the first quarter of 2024, higher interest expense on deposits reflects growth in deposit balances and the impact of the continuing elevated rate environment. Accretion on acquired loans totaled $10.6 million in the first quarter of 2024, $11.3 million in the fourth quarter of 2023, and $15.9 million in the first quarter of 2023.
    • Net interest margin decreased 12 basis points to 3.24% in the first quarter of 2024 compared to 3.36% in the fourth quarter of 2023. Excluding the effects of accretion on acquired loans, net interest margin decreased 11 basis points to 2.91% in the first quarter of 2024 compared to 3.02% in the fourth quarter of 2023. Loan yields were 5.90%, an increase of five basis points from the prior quarter. The effect on loan yields of accretion of purchase discounts on acquired loans was an increase of 42 basis points in the first quarter of 2024, an increase of 45 basis points in the fourth quarter of 2023 and an increase of 69 basis points in the first quarter of 2023. Securities yields expanded five basis points to 3.47%, compared to 3.42% in the prior quarter. The cost of deposits increased 19 basis points, from 2.00% in the prior quarter, to 2.19% in the first quarter of 2024. The decline in margin quarter-over-quarter was driven in part by the success in growing deposits.
    • Noninterest income totaled $20.5 million in the first quarter of 2024, an increase of $3.2 million, or 18%, compared to the prior quarter, and a decrease of $1.9 million, or 9%, compared to the prior year quarter. Changes compared to the fourth quarter of 2023 included:
      • Interchange income decreased $0.5 million, or 22%, to $1.9 million, with the prior quarter benefiting from an annual volume-based incentive earned from the payment network provider.
      • The wealth management division continues to demonstrate success in building relationships, and during the first quarter of 2024, assets under management grew $160 million, driving a $0.3 million or 9%, increase in wealth management income. The team enters the second quarter with a robust pipeline.
      • Insurance agency income increased $0.2 million, or 21%, to $1.3 million, reflecting a record quarter for the agency.
      • Other income increased $0.5 million, or 12%, to $5.2 million, with increases in marine and aircraft loan production sold, and in SBIC income.
      • Net securities gains of $0.2 million in the first quarter of 2024 include gains of $4.1 million on the sale of the Company’s holdings of Visa Class B stock. This was largely offset by losses of $3.8 million on the sale of $86.8 million or 3% of the bank’s investment securities portfolio. The securities were reinvested at a yield of 5.53%, with an expected earnback on the trade of 1.9 years.
    • The provision for credit losses was $1.4 million in the first quarter of 2024, compared to $4.0 million in the fourth quarter of 2023 and $31.6 million in the first quarter of 2023. The first quarter of 2023 included a $26.6 million day-one provision associated with a bank acquisition.
    • Noninterest expense was $90.4 million in the first quarter of 2024, an increase of $4.0 million, or 5%, compared to the prior quarter, and a decrease of $17.1 million, or 16%, compared to the prior year quarter. Changes compared to the fourth quarter of 2023 included:
      • Salaries and wages increased $1.9 million, or 5%, to $40.3 million, including $2.1 million in severance-related expenses arising from reductions in the workforce early in the first quarter of 2024.
      • Employee benefits increased $1.2 million, or 18%, to $7.9 million, reflecting higher seasonal payroll taxes and 401(k) contributions.
      • Outsourced data processing costs increased $3.5 million, or 41%, to $12.1 million and included $4.1 million in charges associated with contract terminations and modifications to consolidate systems, which will lead to lower ongoing operating expenses.
      • Occupancy costs increased $0.5 million, or 7%, to $8.0 million in the first quarter of 2024 and included charges of $0.8 million associated with early lease terminations and consolidation of locations. Occupancy expenses will be lower going forward.
      • Legal and professional fees decreased $1.1 million, or 35%, to $2.2 million, with the fourth quarter of 2023 impacted by one-time legal fees associated with a closed matter.
    • Seacoast recorded $7.8 million of income tax expense in the first quarter of 2024, compared to $8.3 million in the fourth quarter of 2023, and $2.7 million in the first quarter of 2023. Tax expense related to stock-based compensation was nominal in the first quarter of 2024 and tax benefits related to stock-based compensation totaled $0.6 million in the fourth quarter of 2023 and $0.2 million in the first quarter of 2023.
    • The efficiency ratio was 66.78% in the first quarter of 2024, compared to 60.32% in the fourth quarter of 2023 and 64.62% in the prior year quarter. The adjusted efficiency ratio1 was 61.13% in the first quarter of 2024, compared to 60.32% in the fourth quarter of 2023 and 53.10% in the prior year quarter. The Company continues to remain keenly focused on disciplined expense control. The increase in the adjusted efficiency ratio in the first quarter of 2024 reflects the continued impact of higher deposit rates mitigated partially by disciplined expense management.

    Balance Sheet

    • At March 31, 2024, the Company had total assets of $14.8 billion and total shareholders' equity of $2.1 billion. Book value per share was $24.93 as of March 31, 2024, compared to $24.84 as of December 31, 2023, and $24.24 as of March 31, 2023. Tangible book value per share increased to $15.26 as of March 31, 2024, compared to $15.08 as of December 31, 2023, and $14.25 as of March 31, 2023.
    • Debt securities totaled $2.6 billion as of March 31, 2024, an increase of $103.0 million, or 4%, compared to December 31, 2023. Debt securities include approximately $1.9 billion in securities classified as available for sale and recorded at fair value. The unrealized loss on these securities is fully reflected in the value presented on the balance sheet. The portfolio also includes $669.9 million in securities classified as held to maturity with a fair value of $540.2 million. Held-to-maturity securities consist solely of mortgage-backed securities and collateralized mortgage obligations guaranteed by U.S. government agencies, each of which is expected to recover any price depreciation over its holding period as the debt securities move to maturity. The Company has significant liquidity and available borrowing capacity and has the intent and ability to hold these investments to maturity.
    • Loans decreased $84.9 million from December 31, 2023, totaling $10.0 billion as of March 31, 2024. Loan originations were $368.3 million in the first quarter of 2024, a decrease of 23%, consistent with typical seasonality, compared to $477.9 million in the fourth quarter of 2023. The Company continues to exercise a disciplined approach to lending, carefully underwriting loans to strict underwriting guidelines and setting high expectations for risk adjusted returns.
    • Loan pipelines (loans in underwriting and approval or approved and not yet closed) totaled $572.9 million as of March 31, 2024, an increase of 46% from December 31, 2023, and an increase of 46% from March 31, 2023.
      • Commercial pipelines were $498.6 million as of March 31, 2024, an increase of 63% from $306.5 million at December 31, 2023, and an increase of 72% from $289.2 million at March 31, 2023. The Company is benefiting from the investment made in recent years to attract talent from regional banks across its markets. This talent is onboarding significant new relationships, resulting in higher deposit growth and growing pipelines.
      • SBA pipelines were $15.6 million as of March 31, 2024, a decrease of 24% from $20.6 million at December 31, 2023, and an increase of 90% from $8.2 million at March 31, 2023.
      • Consumer pipelines were $25.1 million as of March 31, 2024, an increase of $6.3 million, or 34%, from $18.7 million at December 31, 2023, and a decrease of $13.7 million, or 35%, from $38.7 million at March 31, 2023.
      • Residential saleable pipelines were $9.3 million as of March 31, 2024, an increase of 249% from $2.7 million at December 31, 2023, and an increase of 40% from $6.6 million at March 31, 2023. Retained residential pipelines were $24.4 million as of March 31, 2024, a decrease of 45% from $44.4 million at December 31, 2023, and a decrease of 50% from $48.4 million at March 31, 2023.
    • Total deposits were $12.0 billion as of March 31, 2024, an increase of $238.9 million, or 8% annualized, when compared to December 31, 2023. Seacoast’s granular, longstanding deposit base is a hallmark of our franchise and serves as a significant source of strength.
      • At March 31, 2024, transaction account balances represented 52% of overall deposits.
      • Noninterest demand deposits represent 30% of overall deposits and grew $10.4 million from the prior quarter.
      • The Company benefits from a granular deposit franchise, with the top ten depositors representing only 4% of total deposits.
      • Average deposits per banking center were $156.0 million at March 31, 2024, an increase of 2% from the prior quarter.
      • Uninsured deposits represented only 35% of overall deposit accounts as of March 31, 2024. This includes public funds under the Florida Qualified Public Depository program, which provides loss protection to depositors beyond FDIC insurance limits. Excluding such balances, the uninsured and uncollateralized deposits were 29% of total deposits. The Company has liquidity sources including cash and lines of credit with the Federal Reserve and Federal Home Loan Bank that represent 138% of uninsured deposits, and 164% of uninsured and uncollateralized deposits.
      • Consumer deposits represent 42% of overall deposit funding with an average consumer customer balance of $25 thousand. Commercial deposits represent 58% of overall deposit funding with an average business customer balance of $110 thousand.
    • Federal Home Loan Bank advances totaled $110.0 million at March 31, 2024 with a weighted average interest rate of 4.15%. In the aggregate, borrowed funds, including FHLB advances, long-term debt and brokered deposits represented only 2.8% of total liabilities as of March 31, 2024.

    Asset Quality

    • Nonperforming loans were $77.2 million at March 31, 2024, an increase from $65.1 million at December 31, 2023, and $50.8 million at March 31, 2023. Nonperforming loans to total loans outstanding were 0.77% at March 31, 2024, 0.65% at December 31, 2023, and 0.50% at March 31, 2023.
    • Nonperforming assets to total assets increased to 0.57% at March 31, 2024, compared to 0.50% at December 31, 2023, and 0.38% at March 31, 2023.
    • The ratio of allowance for credit losses to total loans was 1.47% at March 31, 2024, 1.48% at December 31, 2023, and 1.54% at March 31, 2023.
    • Net charge-offs were $3.6 million in the first quarter of 2024, compared to $4.7 million in the fourth quarter of 2023 and $3.2 million in the first quarter of 2023.
    • Portfolio diversification, in terms of asset mix, industry, and loan type, has been a critical element of the Company's lending strategy. Exposure across industries and collateral types is broadly distributed. Seacoast's average loan size is $332 thousand, and the average commercial loan size is $742 thousand, reflecting an ability to maintain granularity within the overall loan portfolio.
    • Construction and land development and commercial real estate loans remain well below regulatory guidance at 39% and 236% of total bank-level risk-based capital, respectively, compared to 48% and 244%, respectively, at December 31, 2023. On a consolidated basis, construction and land development and commercial real estate loans represent 36% and 222%, respectively, of total consolidated risk-based capital.

    Capital and Liquidity

    • The Company continues to operate with a fortress balance sheet with a Tier 1 capital ratio at March 31, 2024 of 14.6% compared to 14.5% at December 31, 2023, and 13.4% at March 31, 2023. The Total capital ratio was 16.0%, the Common Equity Tier 1 capital ratio was 14.0%, and the Tier 1 leverage ratio was 11.1% at March 31, 2024. The Company is considered “well capitalized” based on applicable U.S. regulatory capital ratio requirements.
    • Cash and cash equivalents at March 31, 2024 totaled $682.7 million.
    • The Company’s loan to deposit ratio was 83.1% at March 31, 2024, which should provide liquidity and flexibility moving forward.
    • Tangible common equity to tangible assets was 9.25% at March 31, 2024, compared to 9.31% at December 31, 2023, and 8.36% at March 31, 2023. If all held-to-maturity securities were adjusted to fair value, the tangible common equity ratio would have been 8.59%.
    • At March 31, 2024, in addition to $682.7 million in cash, the Company had $5.1 billion in available borrowing capacity, including $4.4 billion in available collateralized lines of credit, $0.4 billion of unpledged debt securities available as collateral for potential additional borrowings, and available unsecured lines of credit of $0.3 billion. These liquidity sources as of March 31, 2024 represented 164% of uninsured and uncollateralized deposits.
    • Our Board of Directors has approved a share repurchase program of up to $100 million in shares of the Company’s common stock. No shares were repurchased during the first quarter of 2024.

    1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.

    FINANCIAL HIGHLIGHTS        
    (Amounts in thousands except per share data)(Unaudited) 
     Quarterly Trends 
               
     1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 
    Selected balance sheet data:          
    Gross loans$9,978,052  $10,062,940  $10,011,186  $10,117,919  $10,134,395  
    Total deposits 12,015,840   11,776,935   12,107,834   12,283,267   12,309,701  
    Total assets 14,830,015   14,580,249   14,823,007   15,041,932   15,255,408  
               
    Performance measures:          
    Net income$26,006  $29,543  $31,414  $31,249  $11,827  
    Net interest margin 3.24%  3.36%  3.57%  3.86%  4.31% 
    Pre-tax pre-provision earnings1$35,674  $
    		42,006  $
    		43,383  $
    		40,864  $
    		47,560  
    Average diluted shares outstanding 85,270   85,336   85,666   85,536   80,717  
    Diluted earnings per share (EPS) 0.31   0.35   0.37   0.37   0.15  
    Return on (annualized):          
    Average assets (ROA) 0.71%  0.80%  0.84%  0.84%  0.34% 
    Average tangible assets (ROTA)2 0.89   0.99   1.04   1.06   0.52  
    Average tangible common equity (ROTCE)2 9.55   11.22   11.90   12.08   5.96  
    Tangible common equity to tangible assets2 9.25   9.31   8.68   8.53   8.36  
    Tangible book value per share2$15.26  $15.08  $14.26  $14.24  $14.25  
    Efficiency ratio 66.78%  60.32%  62.60%  67.34%  64.62% 
               
    Adjusted operating measures1:          
    Adjusted net income4$31,132  $31,363  $34,170  $43,489  $23,682  
    Adjusted pre-tax pre-provision earnings4 42,513   45,016   47,349   57,202   64,354  
    Adjusted diluted EPS4 0.37   0.37   0.40   0.51   0.29  
    Adjusted ROTA2 1.04%  1.04%  1.12%  1.41%  0.88% 
    Adjusted ROTCE2 11.15   11.80   12.79   16.08   10.16  
    Adjusted efficiency ratio 61.13   60.32   60.19   56.44   53.10  
    Net adjusted noninterest expense as a
    percent of average tangible assets2    		 2.23%  2.25   2.34   2.40   2.47  
               
    Other data:          
    Market capitalization3$2,156,529  $2,415,158  $1,869,891  $1,880,407  $2,005,241  
    Full-time equivalent employees 1,445   1,541   1,570   1,670   1,650  
    Number of ATMs 95   96   97   96   97  
    Full-service banking offices 77   77   77   78   83  
    1 Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP.
    2 The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.
    3 Common shares outstanding multiplied by closing bid price on last day of each period.
    4 As of 1Q’24, amortization of intangibles is excluded from adjustments to noninterest expense; prior periods have been updated to reflect the change. 

    OTHER INFORMATION

    Conference Call Information
    Seacoast will host a conference call April 26, 2024, at 10:00 a.m. (Eastern Time) to discuss the first quarter of 2024 earnings results and business trends. Investors may call in (toll-free) by dialing (800) 715-9871 (Conference ID: 7523995). Charts will be used during the conference call and may be accessed at Seacoast’s website at www.SeacoastBanking.com by selecting “Presentations” under the heading “News/Events.” Additionally, a recording of the call will be made available to individuals shortly after the conference call and can be accessed via a link at www.SeacoastBanking.com under the heading “Corporate Information.” The recording will be available for one year.

    About Seacoast Banking Corporation of Florida (NASDAQ: SBCF)
    Seacoast Banking Corporation of Florida (NASDAQ: SBCF) is one of the largest community banks headquartered in Florida with approximately $14.8 billion in assets and $12.0 billion in deposits as of March 31, 2024. Seacoast provides integrated financial services including commercial and consumer banking, wealth management, and mortgage services to customers at 77 full-service branches across Florida, and through advanced mobile and online banking solutions. Seacoast National Bank is the wholly-owned subsidiary bank of Seacoast Banking Corporation of Florida. For more information about Seacoast, visit www.SeacoastBanking.com. 

    Tracey L. Dexter
    Chief Financial Officer
    Seacoast Banking Corporation of Florida
    (772) 403-0461

    Cautionary Notice Regarding Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements about future financial and operating results, cost savings, enhanced revenues, economic and seasonal conditions in the Company’s markets, and improvements to reported earnings that may be realized from cost controls, tax law changes, new initiatives and for integration of banks that the Company has acquired, or expects to acquire, as well as statements with respect to Seacoast's objectives, strategic plans, 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 the Company’s beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates and intentions about future performance and involve known and unknown risks, uncertainties and other factors, which may be beyond the Company’s control, and which may cause the actual results, performance or achievements of Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”) or its wholly-owned banking subsidiary, Seacoast National Bank (“Seacoast Bank”), to be materially different from results, performance or achievements expressed or implied by such forward-looking statements. You should not expect the Company to update any forward-looking statements.

    All statements other than statements of historical fact could be forward-looking statements. You can identify these forward-looking statements through the use of words such as "may", "will", "anticipate", "assume", "should", "support", "indicate", "would", "believe", "contemplate", "expect", "estimate", "continue", "further", "plan", "point to", "project", "could", "intend", "target" 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 impact of current and future economic and market conditions generally (including seasonality) and in the financial services industry, nationally and within Seacoast’s primary market areas, including the effects of inflationary pressures, changes in interest rates, slowdowns in economic growth, and the potential for high unemployment rates, as well as the financial stress on borrowers and changes to customer and client behavior and credit risk as a result of the foregoing; potential impacts of adverse developments in the banking industry, including those highlighted by high-profile bank failures, and including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto (including increases in the cost of our deposit insurance assessments), the Company's ability to effectively manage its liquidity risk and any growth plans, and the availability of capital and funding; governmental monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve, as well as legislative, tax and regulatory changes, including those that impact the money supply and inflation; the risks of changes in interest rates on the level and composition of deposits (as well as the cost of, and competition for, deposits), loan demand, liquidity and the values of loan collateral, securities, and interest rate sensitive assets and liabilities; interest rate risks (including the impacts of interest rates on macroeconomic conditions, customer and client behavior, and on our net interest income), sensitivities and the shape of the yield curve; changes in accounting policies, rules and practices; changes in retail distribution strategies, customer preferences and behavior generally and as a result of economic factors, including heightened inflation; changes in the availability and cost of credit and capital in the financial markets; changes in the prices, values and sales volumes of residential and commercial real estate, especially as they relate to the value of collateral supporting the Company’s loans; the Company’s concentration in commercial real estate loans and in real estate collateral in Florida; Seacoast’s ability to comply with any regulatory requirements; the risk that the regulatory environment may not be conducive to or may prohibit the consummation of future mergers and/or business combinations, may increase the length of time and amount of resources required to consummate such transactions, and may reduce the anticipated benefit; inaccuracies or other failures from the use of models, including the failure of assumptions and estimates, as well as differences in, and changes to, economic, market and credit conditions; the impact on the valuation of Seacoast’s investments due to market volatility or counterparty payment risk, as well as the effect of a decline in stock market prices on our fee income from our wealth management business; statutory and regulatory dividend restrictions; increases in regulatory capital requirements for banking organizations generally; the risks of mergers, acquisitions and divestitures, including Seacoast’s ability to continue to identify acquisition targets, successfully acquire and integrate desirable financial institutions and realize expected revenues and revenue synergies; changes in technology or products that may be more difficult, costly, or less effective than anticipated; the Company’s ability to identify and address increased cybersecurity risks, including those impacting vendors and other third parties which may be exacerbated by recent developments in generative artificial intelligence; fraud or misconduct by internal or external parties, which Seacoast may not be able to prevent, detect or mitigate; inability of Seacoast’s risk management framework to manage risks associated with the Company’s business; dependence on key suppliers or vendors to obtain equipment or services for the business on acceptable terms, including the impact of supply chain disruptions; reduction in or the termination of Seacoast’s ability to use the online- or mobile-based platform that is critical to the Company’s business growth strategy; the effects of war or other conflicts, including the impacts related to or resulting from Russia’s military action in Ukraine and the escalating conflicts in the Middle East, acts of terrorism, natural disasters, including hurricanes in the Company’s footprint, health emergencies, epidemics or pandemics, or other catastrophic events that may affect general economic conditions and/or increase costs, including, but not limited to, property and casualty and other insurance costs; Seacoast’s ability to maintain adequate internal controls over financial reporting; potential claims, damages, penalties, fines, costs and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions; the risks that deferred tax assets could be reduced if estimates of future taxable income from the Company’s operations and tax planning strategies are less than currently estimated, the results of tax audit findings, challenges to our tax positions, or adverse changes or interpretations of tax laws; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, non-bank financial technology providers, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions; the failure of assumptions underlying the establishment of reserves for expected credit losses; risks related to, and the costs associated with, environmental, social and governance matters, including the scope and pace of related rulemaking activity and disclosure requirements; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the debt ceiling and the federal budget; the risk that balance sheet, revenue growth, and loan growth expectations may differ from actual results; and other factors and risks described under “Risk Factors” herein and in any of the Company's subsequent reports filed with the SEC and available on its website at www.sec.gov. 

    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 the Company’s annual report on Form 10-K for the year ended December 31, 2023 and in other periodic reports that the Company files with the SEC. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at www.sec.gov. 


    FINANCIAL HIGHLIGHTS    (Unaudited)  
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES      
         Quarterly Trends    
    (Amounts in thousands, except ratios and per share data)1Q'24 4Q'23 3Q'23 2Q'23 1Q'23
    Summary of Earnings         
    Net income$ 26,006  $29,543  $31,414  $31,249  $11,827 
    Adjusted net income1,6 31,132   31,363   34,170   43,489   23,682 
    Net interest income2 105,298   111,035   119,505   127,153   131,351 
    Net interest margin2,3 3.24 %  3.36%  3.57%  3.86%  4.31%
    Pre-tax pre-provision earnings1 35,674   42,006   43,383   40,864   47,560 
    Adjusted pre-tax pre-provision earnings1,6 42,513   45,016   47,349   57,202   64,354 
    Performance Ratios         
    Return on average assets-GAAP basis3 0.71 %  0.80%  0.84%  0.84%  0.34%
    Return on average tangible assets-GAAP basis3,4 0.89   0.99   1.04   1.06   0.52 
    Adjusted return on average tangible assets1,3,4 1.04   1.04   1.12   1.41   0.88 
    Pre-tax pre-provision return on average tangible assets1,3,4,6 1.22   1.39   1.43   1.39   1.67 
    Adjusted pre-tax pre-provision return on average tangible assets1,3,4 1.42   1.48   1.55   1.85   2.18 
    Net adjusted noninterest expense to average tangible assets1,3,4 2.23   2.25   2.34   2.40   2.47 
    Return on average shareholders' equity-GAAP basis3 4.94   5.69   6.01   6.05   2.53 
    Return on average tangible common equity-GAAP basis3,4 9.55   11.22   11.90   12.08   5.96 
    Adjusted return on average tangible common equity1,3,4 11.15   11.80   12.79   16.08   10.16 
    Efficiency ratio5 66.78   60.32   62.60   67.34   64.62 
    Adjusted efficiency ratio1 61.13   60.32   60.19   56.44   53.10 
    Noninterest income to total revenue (excluding securities gains/losses) 16.17   15.14   13.22   14.63   14.55 
    Tangible common equity to tangible assets4 9.25   9.31   8.68   8.53   8.36 
    Average loan-to-deposit ratio 84.50   83.38   82.63   83.48   82.43 
    End of period loan-to-deposit ratio 83.12   85.48   82.71   82.42   82.35 
    Per Share Data         
    Net income diluted-GAAP basis$ 0.31  $0.35  $0.37  $0.37  $0.15 
    Net income basic-GAAP basis 0.31   0.35   0.37   0.37   0.15 
    Adjusted earnings1,6 0.37   0.37   0.40   0.51   0.29 
    Book value per share common 24.93   24.84   24.06   24.14   24.24 
    Tangible book value per share 15.26   15.08   14.26   14.24   14.25 
    Cash dividends declared 0.18   0.18   0.18   0.18   0.17 
    1 Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP.     
    2 Calculated on a fully taxable equivalent basis using amortized cost.
    3 These ratios are stated on an annualized basis and are not necessarily indicative of future periods.
    4 The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.
    5 Defined as noninterest expense less amortization of intangibles and gains, losses, and expenses on foreclosed properties divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains and losses).
    6 As of 1Q'24, amortization of intangibles is excluded from adjustments to noninterest expense; prior periods have been updated to reflect the change.



    CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)  
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES       
     Quarterly Trends 
    (Amounts in thousands, except per share data)1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 
               
    Interest on securities:          
    Taxable$ 22,393  $21,383  $21,401  $20,898  $19,244 
    Nontaxable 34   55   97   97   105 
    Interest and fees on loans 147,095   147,801   149,871   148,265   135,168 
    Interest on federal funds sold and other investments 6,184   7,616   8,477   5,023   3,474 
    Total Interest Income 175,706   176,855   179,846   174,283   157,991 
               
    Interest on deposits 47,534   44,923   38,396   27,183   16,033 
    Interest on time certificates 17,121   15,764   16,461   14,477   5,552 
    Interest on borrowed money 5,973   5,349   5,683   5,660   5,254 
    Total Interest Expense 70,628   66,036   60,540   47,320   26,839 
               
    Net Interest Income 105,078   110,819   119,306   126,963   131,152 
    Provision for credit losses 1,368   3,990   2,694   (764)  31,598 
    Net Interest Income After Provision for Credit Losses 103,710   106,829   116,612   127,727   99,554 
               
    Noninterest income:          
    Service charges on deposit accounts 4,960   4,828   4,648   4,560   4,242 
    Interchange income 1,888   2,433   1,684   5,066   4,694 
    Wealth management income 3,540   3,261   3,138   3,318   3,063 
    Mortgage banking fees 381   378   410   576   426 
    Insurance agency income 1,291   1,066   1,183   1,160   1,101 
    SBA gains 739   921   613   249   322 
    BOLI income 2,264   2,220   2,197   2,068   1,916 
    Other 5,205   4,668   4,307   4,755   6,574 
      20,268   19,775   18,180   21,752   22,338 
    Securities gains (losses), net 229   (2,437)  (387)  (176)  107 
    Total Noninterest Income 20,497   17,338   17,793   21,576   22,445 
               
    Noninterest expenses:          
    Salaries and wages 40,304   38,435   46,431   45,155   47,616 
    Employee benefits 7,889   6,678   7,206   7,472   8,562 
    Outsourced data processing costs 12,118   8,609   8,714   20,222   14,553 
    Occupancy 8,037   7,512   7,758   8,583   8,019 
    Furniture and equipment 2,011   2,028   2,052   2,345   2,267 
    Marketing 2,655   2,995   1,876   2,047   2,238 
    Legal and professional fees 2,151   3,294   2,679   4,062   7,479 
    FDIC assessments 2,158   2,813   2,258   2,116   1,443 
    Amortization of intangibles 6,292   6,888   7,457   7,654   6,727 
    Foreclosed property expense and net (gain) loss on sale (26)  573   274   (57)  195 
    Provision for credit losses on unfunded commitments 250   —   —   —   1,239 
    Other 6,532   6,542   7,210   8,266   7,137 
    Total Noninterest Expense 90,371   86,367   93,915   107,865   107,475 
               
    Income Before Income Taxes 33,836   37,800   40,490   41,438   14,524 
    Income taxes 7,830   8,257   9,076   10,189   2,697 
    Net Income$ 26,006  $29,543  $31,414  $31,249  $11,827 
               
    Per share of common stock:          
               
    Net income diluted$ 0.31  $0.35  $0.37  $0.37  $0.15 
    Net income basic 0.31   0.35   0.37   0.37   0.15 
    Cash dividends declared 0.18   0.18   0.18   0.18   0.17 
               
    Average diluted shares outstanding 85,270   85,336   85,666   85,536   80,717 
    Average basic shares outstanding 84,908   84,817   85,142   85,022   80,151 
               



    CONDENSED CONSOLIDATED BALANCE SHEETS   (Unaudited)    
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES        
     March 31, December 31, September 30, June 30, March 31,
    (Amounts in thousands) 2024   2023   2023   2023   2023 
    Assets         
    Cash and due from banks$ 137,850  $167,511  $182,036  $164,193  $180,607 
    Interest bearing deposits with other banks 544,874   279,671   513,946   563,690   610,636 
    Total Cash and Cash Equivalents 682,724   447,182   695,982   727,883   791,243 
              
    Time deposits with other banks 7,856   5,857   4,357   2,987   3,236 
              
    Debt Securities:         
    Available for sale (at fair value) 1,949,463   1,836,020   1,841,845   1,916,231   2,015,967 
    Held to maturity (at amortized cost) 669,896   680,313   691,404   707,812   737,911 
    Total Debt Securities 2,619,359   2,516,333   2,533,249   2,624,043   2,753,878 
              
    Loans held for sale 9,475   4,391   2,979   5,967   2,838 
              
    Loans 9,978,052   10,062,940   10,011,186   10,117,919   10,134,395 
    Less: Allowance for credit losses (146,669)  (148,931)  (149,661)  (159,715)  (155,640)
    Net Loans 9,831,383   9,914,009   9,861,525   9,958,204   9,978,755 
              
    Bank premises and equipment, net 110,787   113,304   115,749   116,959   116,522 
    Other real estate owned 7,315   7,560   7,216   7,526   7,756 
    Goodwill 732,417   732,417   731,970   732,910   728,396 
    Other intangible assets, net 89,377   95,645   102,397   109,716   117,409 
    Bank owned life insurance 301,229   298,974   296,763   293,880   292,545 
    Net deferred tax assets 111,539   113,232   131,602   127,941   124,301 
    Other assets 326,554   331,345   339,218   333,916   338,529 
    Total Assets$ 14,830,015  $14,580,249  $14,823,007  $15,041,932  $15,255,408 
              
    Liabilities and Shareholders' Equity         
    Liabilities         
    Deposits         
    Noninterest demand$ 3,555,401  $3,544,981  $3,868,132  $4,139,052  $4,554,509 
    Interest-bearing demand 2,711,041   2,790,210   2,800,152   2,816,656   2,676,320 
    Savings 608,088   651,454   721,558   824,255   940,702 
    Money market 3,531,029   3,314,288   3,143,897   2,859,164   2,893,128 
    Brokered time certificates 142,717   122,347   307,963   591,503   371,392 
    Time deposits 1,467,564   1,353,655   1,266,132   1,052,637   873,650 
    Total Deposits 12,015,840   11,776,935   12,107,834   12,283,267   12,309,701 
              
    Securities sold under agreements to repurchase 326,732   374,573   276,450   290,156   267,606 
    Federal Home Loan Bank borrowings 110,000   50,000   110,000   160,000   385,000 
    Long-term debt, net 106,468   106,302   106,136   105,970   105,804 
    Other liabilities 153,225   164,353   174,193   148,507   136,213 
    Total Liabilities 12,712,265   12,472,163   12,774,613   12,987,900   13,204,324 
              
    Shareholders' Equity         
    Common stock 8,494   8,486   8,515   8,509   8,461 
    Additional paid in capital 1,811,941   1,808,883   1,813,068   1,809,431   1,803,898 
    Retained earnings 478,017   467,305   453,117   437,087   421,271 
    Treasury stock (16,746)  (16,710)  (14,035)  (14,171)  (13,113)
      2,281,706   2,267,964   2,260,665   2,240,856   2,220,517 
    Accumulated other comprehensive (loss) income, net (163,956)  (159,878)  (212,271)  (186,824)  (169,433)
    Total Shareholders' Equity 2,117,750   2,108,086   2,048,394   2,054,032   2,051,084 
    Total Liabilities & Shareholders' Equity$ 14,830,015  $14,580,249  $14,823,007  $15,041,932  $15,255,408 
              
    Common shares outstanding 84,935   84,861   85,150   85,086   84,609 



    CONSOLIDATED QUARTERLY FINANCIAL DATA  (Unaudited)  
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES         
              
    (Amounts in thousands)1Q'24 4Q'23 3Q'23 2Q'23 1Q'23
    Credit Analysis         
    Net charge-offs$ 3,630  $4,720  $12,748  $705  $3,188 
    Net charge-offs to average loans 0.15 %  0.19%  0.50%  0.03%  0.14%
              
    Allowance for credit losses$ 146,669  $148,931  $149,661  $159,715  $155,640 
              
    Non-acquired loans at end of period$ 6,613,763  $6,571,454  $6,343,121  $6,264,044  $6,048,453 
    Acquired loans at end of period 3,364,289   3,491,486   3,668,065   3,853,875   4,085,942 
    Total Loans$ 9,978,052  $10,062,940  $10,011,186  $10,117,919  $10,134,395 
              
    Total allowance for credit losses to total loans at end of period 1.47 %  1.48%  1.49%  1.58%  1.54%
    Purchase discount on acquired loans at end of period 4.63   4.75   4.86   4.98   5.02 
              
    End of Period         
    Nonperforming loans$ 77,205  $65,104  $41,508  $48,326  $50,787 
    Other real estate owned 309   221   221   530   530 
    Properties previously used in bank operations included in other real estate owned 7,006   7,339   6,995   6,996   7,226 
    Total Nonperforming Assets$ 84,520  $72,664  $48,724  $55,852  $58,543 
              
    Nonperforming Loans to Loans at End of Period 0.77 %  0.65%  0.41%  0.48%  0.50%
    Nonperforming Assets to Total Assets at End of Period 0.57   0.50   0.33   0.37   0.38 
              
     March 31, December 31, September 30, June 30, March 31,
    Loans 2024   2023   2023   2023   2023 
    Construction and land development$ 623,246  $767,622  $793,736  $794,371  $757,835 
    Commercial real estate - owner occupied 1,656,131   1,670,281   1,675,881   1,669,369   1,652,491 
    Commercial real estate - non-owner occupied 3,368,339   3,319,890   3,285,974   3,370,211   3,412,051 
    Residential real estate 2,521,399   2,445,692   2,418,903   2,396,352   2,354,394 
    Commercial and financial 1,566,198   1,607,888   1,588,152   1,615,534   1,655,884 
    Consumer 242,739   251,567   248,540   272,082   301,740 
    Total Loans$ 9,978,052  $10,062,940  $10,011,186  $10,117,919  $10,134,395 
     



    AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1   (Unaudited)          
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES              
                      
                      
     1Q'24 4Q'23 1Q'23
     Average   Yield/ Average   Yield/ Average   Yield/
    (Amounts in thousands)Balance Interest Rate Balance Interest Rate Balance Interest Rate
                      
    Assets                 
    Earning assets:                 
    Securities:                 
    Taxable$ 2,578,938  $ 22,393 3.47% $2,499,047  $21,383 3.42% $2,700,122  $19,244 2.85%
    Nontaxable 5,907   41 2.75   7,835   68 3.48   16,271   131 3.22 
    Total Securities 2,584,845   22,434 3.47   2,506,882   21,451 3.42   2,716,393   19,375 2.85 
                      
    Federal funds sold 370,494   5,056 5.49   465,506   6,426 5.48   106,778   1,294 4.91 
    Interest bearing deposits with other banks and other investments 95,619   1,128 4.74   91,230   1,190 5.18   178,463   2,180 4.95 
                      
                      
    Total Loans, net 10,034,658   147,308 5.90   10,033,245   148,004 5.85   9,369,201   135,341 5.86 
                      
    Total Earning Assets 13,085,616   175,926 5.41   13,096,863   177,071 5.36   12,370,835   158,190 5.19 
                      
    Allowance for credit losses (148,422)      (149,110)      (139,989)    
    Cash and due from banks 166,734       179,908       156,235     
    Premises and equipment 112,391       115,556       116,083     
    Intangible assets 825,531       832,029       750,694     
    Bank owned life insurance 299,765       297,525       274,517     
    Other assets including deferred tax assets 349,161       365,263       419,601     
                      
    Total Assets$ 14,690,776      $14,738,034      $13,947,976     
                      
    Liabilities and Shareholders' Equity                 
    Interest-bearing liabilities:                 
    Interest-bearing demand$ 2,719,334  $ 15,266 2.26% $2,819,743  $15,658 2.20% $2,452,113  $3,207 0.53%
    Savings 628,329   540 0.35   679,720   505 0.29   1,053,220   400 0.15 
    Money market 3,409,310   31,728 3.74   3,268,829   28,760 3.49   2,713,224   12,426 1.86 
    Time deposits 1,590,070   17,121 4.33   1,524,460   15,764 4.10   812,422   5,552 2.77 
    Securities sold under agreements to repurchase 333,386   3,079 3.71   335,559   2,991 3.54   173,498   864 2.02 
    Federal Home Loan Bank borrowings 102,418   960 3.77   59,022   442 2.97   282,444   2,776 3.99 
    Long-term debt, net 106,373   1,934 7.31   106,205   1,916 7.16   98,425   1,614 6.65 
                      
    Total Interest-Bearing Liabilities 8,889,220   70,628 3.20   8,793,538   66,036 2.98   7,585,346   26,839 1.43 
                      
    Noninterest demand 3,528,489       3,739,993       4,334,969     
    Other liabilities 154,686       145,591       130,616     
    Total Liabilities 12,572,395       12,679,122       12,050,931     
                      
    Shareholders' equity 2,118,381       2,058,912       1,897,045     
                      
    Total Liabilities & Equity$14,690,776      $14,738,034      $13,947,976     
                      
    Cost of deposits    2.19%     2.00%     0.77%
    Interest expense as a % of earning assets    2.17%     2.00%     0.88%
    Net interest income as a % of earning assets  $105,298 3.24%   $111,035 3.36%   $131,351 4.31%
                      
                      
    1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.              
    Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.              



    CONSOLIDATED QUARTERLY FINANCIAL DATA    (Unaudited)     
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES          
    (Amounts in thousands)March 31,
    2024    		 December 31, 2023 September 30, 2023 June 30,
    2023    		 March 31,
    2023    		 
    Customer Relationship Funding          
    Noninterest demand          
    Commercial$ 2,808,151 $2,752,644 $3,089,488 $3,304,761 $3,622,441 
    Retail 553,697  561,569  570,727  615,536  673,686 
    Public funds 145,747  173,893  134,649  152,159  194,977 
    Other 47,806  56,875  73,268  66,596  63,405 
    Total Noninterest Demand 3,555,401  3,544,981  3,868,132  4,139,052  4,554,509 
               
    Interest-bearing demand          
    Commercial 1,561,905  1,576,491  1,618,755  1,555,486  1,233,845 
    Retail 930,178  956,900  994,224  1,058,993  1,209,664 
    Brokered —  —  —  —  44,474 
    Public funds 218,958  256,819  187,173  202,177  188,337 
    Total Interest-Bearing Demand 2,711,041  2,790,210  2,800,152  2,816,656  2,676,320 
               
    Total transaction accounts          
    Commercial 4,370,056  4,329,135  4,708,243  4,860,247  4,856,286 
    Retail 1,483,875  1,518,469  1,564,951  1,674,529  1,883,350 
    Brokered —  —  —  —  44,474 
    Public funds 364,705  430,712  321,822  354,336  383,314 
    Other 47,806  56,875  73,268  66,596  63,405 
    Total Transaction Accounts 6,266,442  6,335,191  6,668,284  6,955,708  7,230,829 
               
    Savings          
    Commercial 52,665  58,562  79,731  101,908  108,023 
    Retail 555,423  592,892  641,827  722,347  832,679 
    Total Savings 608,088  651,454  721,558  824,255  940,702 
               
    Money market          
    Commercial 1,709,636  1,655,820  1,625,455  1,426,348  1,542,220 
    Retail 1,621,618  1,469,142  1,362,390  1,275,721  1,279,712 
    Public funds 199,775  189,326  156,052  157,095  71,196 
    Total Money Market 3,531,029  3,314,288  3,143,897  2,859,164  2,893,128 
               
    Brokered time certificates 142,717  122,347  307,963  591,503  371,392 
    Time deposits 1,467,564  1,353,655  1,266,132  1,052,637  873,650 
      1,610,281  1,476,002  1,574,095  1,644,140  1,245,042 
    Total Deposits$ 12,015,840 $11,776,935 $12,107,834 $12,283,267 $12,309,701 
               
    Customer sweep accounts 326,732  374,573  276,450  290,156  267,606 
               
    Total customer funding (1)$ 12,199,855 $12,029,161 $12,076,321 $11,981,920 $12,161,441 
               
    (1)Total deposits and customer sweep accounts, excluding brokered deposits.          


    Explanation of Certain Unaudited Non-GAAP Financial Measures     
                 
    This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance. The Company believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance and if not provided would be requested by the investor community. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might define or calculate these measures differently. The Company provides reconciliations between GAAP and these non-GAAP measures. These disclosures should not be considered an alternative to GAAP. 
                 



    GAAP TO NON-GAAP RECONCILIATION    (Unaudited)     
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES          
         Quarterly Trends     
    (Amounts in thousands, except per share data)1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 
    Net Income$ 26,006  $29,543  $31,414  $31,249  $11,827  
               
    Total noninterest income 20,497   17,338   17,793   21,576   22,445  
    Securities losses (gains), net (229)  2,437   387   176   (107) 
    BOLI benefits on death (included in other income) —   —   —   —   (2,117) 
    Total Adjustments to Noninterest Income (229)  2,437   387   176   (2,224) 
    Total Adjusted Noninterest Income 20,268   19,775   18,180   21,752   20,221  
               
    Total noninterest expense 90,371   86,367   93,915   107,865   107,475  
    Merger related charges:          
    Salaries and wages —   —   —   (1,573)  (4,240) 
    Outsourced data processing —   —   —   (10,904)  (6,551) 
    Legal and professional fees —   —   —   (1,664)  (4,789) 
    Other —   —   —   (1,507)  (1,952) 
    Total merger related charges —   —   —   (15,648)  (17,532) 
               
    Branch reductions and other expense initiatives:          
    Salaries and wages (2,073)  —   (3,201)  (462)  (539) 
    Outsourced data processing (4,089)  —   —   —   —  
    Occupancy (771)  —   —   —   —  
    Other (161)  —   (104)  (109)  (752) 
    Total branch reductions and other expense initiatives (7,094)  —   (3,305)  (571)  (1,291) 
               
    Adjustments to Noninterest Expense (7,094)  —   (3,305)  (16,219)  (18,823) 
    Adjusted Noninterest Expense2 83,277   86,367   90,610   91,646   88,652  
               
    Income Taxes 7,830   8,257   9,076   10,189   2,697  
    Tax effect of adjustments 1,739   617   936   4,155   4,744  
    Adjusted Income Taxes 9,569   8,874   10,012   14,344   7,441  
    Adjusted Net Income2$ 31,132  $31,363  $34,170  $43,489  $23,682  
               
    Earnings per diluted share, as reported$ 0.31  $0.35  $0.37  $0.37  $0.15  
    Adjusted Earnings per Diluted Share 0.37   0.37   0.40   0.51   0.29  
    Average diluted shares outstanding 85,270   85,336   85,666   85,536   80,717  
               
    Adjusted Noninterest Expense$ 83,277  $86,367  $90,610  $91,646  $88,652  
    Provision for credit losses on unfunded commitments (250)  —   —   —   (1,239) 
    Foreclosed property expense and net gain (loss) on sale 26   (573)  (274)  57   (195) 
    Amortization of intangibles (6,292)  (6,888)  (7,457)  (7,654)  (6,727) 
    Net Adjusted Noninterest Expense$ 76,761  $78,906  $82,879  $84,049  $80,491  
               
    Net adjusted noninterest expense$ 76,761  $78,906  $82,879  $84,049  $80,491  
    Average tangible assets 13,865,245   13,906,005   14,066,216   14,044,301   13,197,282  
    Net Adjusted Noninterest Expense to Average Tangible Assets 2.23 %  2.25%  2.34%  2.40%  2.47% 
               
    Revenue$ 125,575  $128,157  $137,099  $148,539  $153,597  
    Total Adjustments to Revenue (229)  2,437   387   176   (2,224) 
    Impact of FTE adjustment 220   216   199   190   199  
    Adjusted Revenue on a fully taxable equivalent basis$ 125,566  $130,810  $137,685  $148,905  $151,572  
    Adjusted Efficiency Ratio 61.13 %  60.32%  60.19%  56.44%  53.10% 
               
    Net Interest Income$ 105,078  $110,819  $119,306  $126,963  $131,152  
    Impact of FTE adjustment 220   216   199   190   199  
    Net Interest Income including FTE adjustment$ 105,298  $111,035  $119,505  $127,153  $131,351  
    Total noninterest income 20,497   17,338   17,793   21,576   22,445  
    Total noninterest expense less provision for credit losses on unfunded commitments 90,121   86,367   93,915   107,865   106,236  
    Pre-Tax Pre-Provision Earnings$ 35,674  $42,006  $43,383  $40,864  $47,560  
    Total Adjustments to Noninterest Income (229)  2,437   387   176   (2,224) 
    Total Adjustments to Noninterest Expense including foreclosed property expense 7,068   573   3,579   16,162   19,018  
    Adjusted Pre-Tax Pre-Provision Earnings2$ 42,513  $45,016  $47,349  $57,202  $64,354  
               
    Average Assets$ 14,690,776  $14,738,034  $14,906,003  $14,887,289  $13,947,976  
    Less average goodwill and intangible assets (825,531)  (832,029)  (839,787)  (842,988)  (750,694) 
    Average Tangible Assets$ 13,865,245  $13,906,005  $14,066,216  $14,044,301  $13,197,282  
               
               
    GAAP TO NON-GAAP RECONCILIATION    (Unaudited)     
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES          
         Quarterly Trends     
    (Amounts in thousands, except per share data)1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 
    Return on Average Assets (ROA) 0.71 %  0.80%  0.84%  0.84%  0.34% 
    Impact of removing average intangible assets and related amortization 0.18   0.19   0.20   0.22   0.18  
    Return on Average Tangible Assets (ROTA) 0.89   0.99   1.04   1.06   0.52  
    Impact of other adjustments for Adjusted Net Income 0.15   0.05   0.08   0.35   0.36  
    Adjusted Return on Average Tangible Assets 1.04   1.04   1.12   1.41   0.88  
               
    Pre-Tax Pre-Provision return on Average Tangible Assets2 1.22 %  1.39%  1.43%  1.39%  1.67% 
    Impact of adjustments on Pre-Tax Pre-Provision earnings 0.20   0.09   0.12   0.46   0.51  
    Adjusted Pre-Tax Pre-Provision Return on Tangible Assets 1.42   1.48   1.55   1.85   2.18  
               
    Average Shareholders' Equity$ 2,118,381  $2,058,912  $2,072,747  $2,070,529  $1,897,045  
    Less average goodwill and intangible assets (825,531)  (832,029)  (839,787)  (842,988)  (750,694) 
    Average Tangible Equity$ 1,292,850  $1,226,883  $1,232,960  $1,227,541  $1,146,351  
               
    Return on Average Shareholders' Equity 4.94 %  5.69%  6.01%  6.05%  2.53% 
    Impact of removing average intangible assets and related amortization 4.61   5.53   5.89   6.03   3.43  
    Return on Average Tangible Common Equity (ROTCE) 9.55   11.22   11.90   12.08   5.96  
    Impact of other adjustments for Adjusted Net Income 1.60   0.58   0.89   4.00   4.20  
    Adjusted Return on Average Tangible Common Equity 11.15   11.80   12.79   16.08   10.16  
               
    Loan interest income1$ 147,308  $148,004  $150,048  $148,432  $135,341  
    Accretion on acquired loans (10,595)  (11,324)  (14,843)  (14,580)  (15,942) 
    Loan interest income excluding accretion on acquired loans$ 136,713  $136,680  $135,205  $133,852  $119,399  
               
    Yield on loans1 5.90   5.85   5.93   5.89   5.86  
    Impact of accretion on acquired loans (0.42)  (0.45)  (0.59)  (0.58)  (0.69) 
    Yield on loans excluding accretion on acquired loans 5.48 %  5.40%  5.34%  5.31%  5.17% 
               
    Net Interest Income1$ 105,298  $111,035  $119,505  $127,153  $131,351  
    Accretion on acquired loans (10,595)  (11,324)  (14,843)  (14,580)  (15,942) 
    Net interest income excluding accretion on acquired loans$ 94,703  $99,711  $104,662  $112,573  $115,409  
               
    Net Interest Margin 3.24   3.36   3.57   3.86   4.31  
    Impact of accretion on acquired loans (0.33)  (0.34)  (0.44)  (0.44)  (0.53) 
    Net interest margin excluding accretion on acquired loans 2.91 %  3.02%  3.13%  3.42%  3.78% 
               
    Security interest income1$ 22,434  $21,451  $21,520  $21,018  $19,375  
    Tax equivalent adjustment on securities (7)  (13)  (22)  (23)  (26) 
    Security interest income excluding tax equivalent adjustment$ 22,427  $21,438  $21,498  $20,995  $19,349  
               
    Loan interest income1$ 147,308  $148,004  $150,048  $148,432  $135,341  
    Tax equivalent adjustment on loans (213)  (203)  (177)  (167)  (173) 
    Loan interest income excluding tax equivalent adjustment$ 147,095  $147,801  $149,871  $148,265  $135,168  
               
    Net Interest Income1$ 105,298  $111,035  $119,505  $127,153  $131,351  
    Tax equivalent adjustment on securities (7)  (13)  (22)  (23)  (26) 
    Tax equivalent adjustment on loans (213)  (203)  (177)  (167)  (173) 
    Net interest income excluding tax equivalent adjustment$ 105,078  $110,819  $119,306  $126,963  $131,152  
               
    1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.
    2 As of 1Q’24, amortization of intangibles is excluded from adjustments to noninterest expense; prior periods have been updated to reflect the change.

     


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