Seacoast Reports Third Quarter 2023 Results


Well-Positioned Balance Sheet with Strong Capital and Liquidity

Organic Deposit Growth Highlights Third Quarter Results

Robust Capital Position Builds Quarter over Quarter

STUART, Fla., Oct. 26, 2023 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the third quarter of 2023 of $31.4 million, or $0.37 per diluted share, compared to $31.2 million, or $0.37 per diluted share in the second quarter of 2023 and $29.2 million, or $0.47 per diluted share in the third quarter of 2022. For the nine months ended September 30, 2023, net income was $74.5 million, or $0.89 per diluted share, a decrease of 10% compared to the nine months ended September 30, 2022.

Adjusted net income1 for the third quarter of 2023 was $39.7 million, or $0.46 per diluted share, compared to $49.2 million, or $0.58 per diluted share in the second quarter of 2023 and $32.8 million, or $0.53 per diluted share in the third quarter of 2022. Adjusted net income1 for the nine months ended September 30, 2023 was $118.2 million, or $1.41 per diluted share, an increase of 23% compared to the nine months ended September 30, 2022.

Pre-tax pre-provision earnings1 were $43.4 million in the third quarter of 2023, an increase of 6% compared to the second quarter of 2023 and an increase of 1% compared to the third quarter of 2022. Pre-tax pre-provision earnings1 for the nine months ended September 30, 2023 were $130.6 million, an increase of $11.7 million, or 10%, when compared to the nine months ended September 30, 2022. Adjusted pre-tax pre-provision earnings1 were $54.8 million in the third quarter of 2023, a decrease of 15% compared to the second quarter of 2023 and an increase of 12% compared to the third quarter of 2022. Adjusted pre-tax pre-provision earnings1 for the nine months ended September 30, 2023 were $190.7 million, an increase of $53.6 million, or 39%, when compared to the nine months ended September 30, 2022.

For the third quarter of 2023, return on average tangible assets was 1.04% and return on average tangible shareholders' equity was 11.90%, compared to 1.06% and 12.08%, respectively, in the prior quarter, and 1.17% and 11.53%, respectively, in the prior year quarter. Adjusted return on average tangible assets1 in the third quarter of 2023 was 1.12% and adjusted return on average tangible shareholders' equity1 was 12.79%, compared to 1.41% and 16.08%, respectively, in the prior quarter, and 1.27% and 12.48%, respectively, in the prior year quarter. For the nine months ended September 30, 2023, return on average tangible assets was 0.88% and return on average tangible shareholders' equity was 10.09%, compared to 1.11% and 10.82%, respectively, for the nine months ended September 30, 2022. For the nine months ended September 30, 2023, adjusted return on average tangible assets1 was 1.15% and adjusted return on average tangible shareholders' equity1 was 13.14%, compared to 1.24% and 12.13%, respectively, for the nine months ended September 30, 2022.

Charles M. Shaffer, Seacoast's Chairman and CEO said, "Seacoast continues to benefit from the strong deposit franchise, disciplined credit, and conservative balance sheet principles that have served us well over our 96-year history. Following a period of elevated acquisition activity and consistent with our relationship-driven approach, we concentrated during the quarter on organically generated deposit growth, using the funding to pay down brokered time deposits and wholesale borrowings while benefiting from the increase in our market share, to 15th from 18th, in the nation’s fastest-growing state.”

Shaffer added, “We continue to maintain strong credit quality, with non-performing loans declining from the prior quarter. Our balance sheet remains robust, with a Tier 1 capital ratio of 13.9% as of September 30, 2023, and the ratio of tangible common equity to tangible assets of 8.68%. Even if all held-to-maturity securities were adjusted to fair value, our tangible common equity to tangible assets ratio would be a very strong 7.89%. Our liquidity position is also strong with a loan-to-deposit ratio of 83%, providing balance sheet flexibility as we move forward.”

Shaffer concluded, "Given the backdrop of an inverted yield curve and slowing economic conditions, we are managing overhead carefully and completed our previously announced reduction in force late in the third quarter. We will continue to position the Company prudently and manage overhead appropriately for the current operating environment.”

Financial Results

Income Statement

  • Net income was $31.4 million, or $0.37 per diluted share, for the third quarter of 2023 compared to net income of $31.2 million, or $0.37 per diluted share, for the prior quarter, and $29.2 million, or $0.47 per diluted share, for the prior year quarter. For the nine months ended September 30, 2023, net income was $74.5 million, or $0.89 per diluted share, compared to $82.6 million, or $1.33 per diluted share, for the nine months ended September 30, 2022. The results for the nine months ended September 30, 2023 included the $26.6 million day-1 provision for credit losses on loans acquired in the Professional Bank acquisition. Adjusted net income1 for the third quarter of 2023 was $39.7 million, or $0.46 per diluted share, compared to $49.2 million, or $0.58 per diluted share, for the prior quarter, and $32.8 million, or $0.53 per diluted share, for the prior year quarter. For the nine months ended September 30, 2023, adjusted net income1 was $118.2 million, or $1.41 per diluted share, compared to $96.2 million, or $1.56 per diluted share, for the nine months ended September 30, 2022.
  • Net revenues were $137.1 million in the third quarter of 2023, a decrease of $11.4 million, or 8%, compared to the prior quarter, and an increase of $32.7 million, or 31%, compared to the prior year quarter. For the nine months ended September 30, 2023, net revenues were $439.2 million, an increase of $144.3 million, or 49%, compared to the nine months ended September 30, 2022. Adjusted revenues1 were $137.5 million in the third quarter of 2023, a decrease of $11.2 million, or 8%, compared to the prior quarter, and an increase of $32.7 million, or 31%, compared to the prior year quarter. For the nine months ended September 30, 2023, adjusted revenues1 were $437.6 million, an increase of $141.6 million, or 48%, compared to the nine months ended September 30, 2022.
  • Pre-tax pre-provision earnings1 were $43.4 million in the third quarter of 2023, an increase of 6% compared to the second quarter of 2023 and an increase of 1% compared to the third quarter of 2022. Pre-tax pre-provision earnings1 for the nine months ended September 30, 2023 were $130.6 million, an increase of $11.7 million, or 10%, when compared to the nine months ended September 30, 2022. Adjusted pre-tax pre-provision earnings1 were $54.8 million in the third quarter of 2023, a decrease of 15% compared to the second quarter of 2023 and an increase of 12% compared to the third quarter of 2022. Adjusted pre-tax pre-provision earnings1 for the nine months ended September 30, 2023 were $190.7 million, an increase of $53.6 million, or 39%, when compared to the nine months ended September 30, 2022
  • Net interest income totaled $119.3 million in the third quarter of 2023, a decrease of $7.7 million, or 6%, from the second quarter of 2023 and an increase of $31.0 million, or 35%, compared to the third quarter of 2022. During the third quarter of 2023, higher interest expense on deposits was driven by higher rates, including new requirements by the Florida Bar Association for higher rates on certain trust accounts, and by changes in product mix. These were partially offset by higher interest income on securities and loans. Accretion on acquired loans totaled $14.8 million in the third quarter of 2023, $14.6 million in the second quarter of 2023, and $2.2 million in the third quarter of 2022. For the nine months ended September 30, 2023, net interest income was $377.4 million, an increase of $131.0 million, or 53%, compared to the nine months ended September 30, 2022. Accretion on acquired loans totaled $45.4 million for the nine months ended September 30, 2023, compared to $8.7 million for the nine months ended September 30, 2022.
  • Net interest margin decreased 29 basis points to 3.57% in the third quarter of 2023 compared to 3.86% in the second quarter of 2023. Loan yields were 5.93%, up four basis points from the prior quarter, and reflected an increase of 148 basis points compared to the prior year quarter. The effect on loan yields of accretion of purchase discounts on acquired loans was an increase of 59 basis points in the third quarter of 2023, an increase of 58 basis points in the second quarter of 2023 and an increase of 14 basis points in the third quarter of 2022. Securities yields increased 19 basis points to 3.32%, compared to 3.13% in the prior quarter. The cost of deposits increased 41 basis points, from 1.38% in the prior quarter, to 1.79% for the third quarter of 2023.
  • Noninterest income totaled $17.8 million in the third quarter of 2023, a decrease of $3.8 million, or 18%, compared to the prior quarter, and an increase of $1.7 million, or 10%, compared to the prior year quarter. Of the $3.8 million decrease in the third quarter of 2023, $3.4 million resulted from the impact of the Durbin amendment, which became effective for Seacoast on July 1, 2023, and limits network interchange fees earned on debit card transactions. Also in the third quarter of 2023, changes in the interest rate environment resulted in losses of $0.4 million recognized as a result of declines in the value of investments in mutual funds holding CRA-qualified debt securities.
  • The provision for credit losses was $2.7 million in the third quarter of 2023, compared to a net benefit of $0.8 million in the second quarter of 2023 and a provision of $4.7 million in the third quarter of 2022.
  • Noninterest expense was $93.9 million in the third quarter of 2023, a decrease of $14.0 million, or 13%, compared to the prior quarter, and an increase of $32.6 million, or 53%, compared to the prior year quarter. Noninterest expense was $309.3 million for the nine months ended September 30, 2023, compared to $176.4 million in the nine months ended September 30, 2022. Changes compared to the second quarter of 2023 included:
    • During the third quarter of 2023, the Company completed its reduction in force, reducing headcount by 6%, and consolidated a branch location.
    • Salaries and wages increased $1.3 million to $46.4 million in the third quarter of 2023. The third quarter of 2023 included $3.2 million in severance-related expenses arising from the Company’s reduction in workforce. This compares to $1.6 million in merger-related expenses in the second quarter of 2023.
    • Outsourced data processing costs decreased $11.5 million, or 57%, to $8.7 million in the third quarter of 2023. Included in the second quarter of 2023 were $10.9 million in merger-related expenses.
    • Telephone/data lines decreased $0.1 million to $1.4 million and furniture and equipment decreased $0.3 million to $2.1 million in the third quarter of 2023.
    • Marketing decreased $0.2 million to $1.9 million in the third quarter of 2023. Marketing expenses are expected to be higher in the fourth quarter of 2023.
    • Occupancy costs decreased $0.7 million to $6.3 million in the third quarter of 2023 reflecting branch consolidation and cost synergies from recent acquisitions, including one additional branch consolidation in July.
    • Legal and professional fees decreased $1.4 million to $2.7 million in the third quarter of 2023, with $1.7 million of merger-related expenses incurred in the second quarter of 2023.
    • Other noninterest expenses decreased $1.1 million to $7.2 million in the third quarter of 2023, the benefit of acquisition-related cost synergies.
  • Seacoast recorded $9.1 million of income tax expense in the third quarter of 2023, compared to $10.2 million in the second quarter of 2023, and $9.1 million in the third quarter of 2022.
  • The efficiency ratio was 62.60% in the third quarter of 2023, compared to 67.34% in the second quarter of 2023 and 57.13% in the prior year quarter. The adjusted efficiency ratio1 was 60.19% in the third quarter of 2023, compared to 56.44% in the second quarter of 2023 and 53.28% 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 third quarter of 2023 reflects the impact of higher deposit rates, including the first full quarter of the Florida Bar Association’s change to rates required to be paid on certain trust accounts, and the first time impact of the Durbin Amendment on interchange income. The adjusted efficiency ratio1 for the nine months ended September 30, 2023 was 56.47% compared to 53.73% for the nine months ended September 30, 2022.

Balance Sheet

  • At September 30, 2023, the Company had total assets of $14.8 billion and total shareholders' equity of $2.0 billion. Book value per share was $24.06 on September 30, 2023, compared to $24.14 on June 30, 2023, and $20.95 on September 30, 2022. Tangible book value per share totaled $14.26 on September 30, 2023 compared to $14.24 on June 30, 2023 and $15.98 on September 30, 2022. Removing the impact of the change in accumulated comprehensive income, tangible book value per share would have been higher by $0.30, reaching $14.56, an increase of 8% on an annualized basis.
  • Debt securities totaled $2.5 billion on September 30, 2023, a decrease of $90.8 million, or 3%, compared to June 30, 2023. Debt securities include approximately $1.8 billion in securities held at fair value and classified as available for sale. The unrealized loss on these securities is fully reflected in the value presented on the balance sheet. The portfolio also includes $691.4 million in securities classified as held to maturity with a fair value of $537.2 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 $106.7 million when compared to the prior quarter, totaling $10.0 billion as of September 30, 2023. Loan originations were $244.6 million in the third quarter of 2023, a decrease of 53% compared to $518.9 million in the second quarter of 2023. New add on yields were near 8% during the third 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 given the current environment.
  • Loan pipelines (loans in underwriting and approval or approved and not yet closed) totaled $353.0 million on September 30, 2023, an increase of 24% from June 30, 2023, and a decrease of 43% from September 30, 2022.
    • Commercial pipelines were $300.8 million as of September 30, 2023, an increase of 38% from $217.6 million at June 30, 2023, and a decrease of 43% from $530.4 million at September 30, 2022.
    • Consumer pipelines were $24.5 million as of September 30, 2023, a decrease of $4.0 million from $28.4 million at June 30, 2023, and a decrease of 44% from $43.7 million at September 30, 2022.
    • Residential saleable pipelines were $6.8 million as of September 30, 2023, compared to $11.5 million at June 30, 2023, and $6.6 million at September 30, 2022. Retained residential pipelines were $20.9 million as of September 30, 2023, compared to $27.1 million at June 30, 2023, and $60.7 million at September 30, 2022.
  • Total deposits were $12.1 billion as of September 30, 2023, a decrease of $175.4 million when compared to June 30, 2023, and an increase of $3.3 billion, or 38%, compared to September 30, 2022. Excluding the paydown in brokered balances, total deposits increased $108.1 million, or 3.7% annualized, during the third quarter of 2023. Seacoast’s granular, longstanding deposit base is a hallmark of our franchise, and in the current economic environment serves as a significant source of strength.
    • During the third quarter of 2023, the Company grew organic deposits 3.7% annualized and used the proceeds to pay down brokered deposits and FHLB borrowings, bolstering the balance sheet and supporting the net interest margin.
    • At September 30, 2023, transaction account balances represented 55% of overall deposits.
    • Noninterest demand deposits are a peer-leading 32% of overall deposits.
    • The Company benefits from a granular deposit franchise, with the top ten depositors representing only 3% of total deposits.
    • Average deposits per banking center were $157 million at September 30, 2023, unchanged from the prior quarter.
    • Uninsured deposits represented only 34% of overall deposit accounts as of September 30, 2023. 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 154% of uninsured deposits, and 182% of uninsured and uncollateralized deposits.
    • Consumer deposits represent 43% of overall deposit funding with an average consumer customer balance of $24 thousand. Commercial deposits represent 57% of overall deposit funding with an average business customer balance of $111 thousand.
    • Year over year, the Company increased its deposit market share from #18 in 2022 to #15 in 2023.
  • Federal Home Loan Bank advances totaled $110.0 million at September 30, 2023 with a weighted average interest rate of 2.88%. In the aggregate, borrowed funds, including FHLB advances, subordinated debt and brokered deposits represented only 4.1% of total liabilities as of September 30, 2023. During the third quarter of 2023, the Company paid down $333.4 million in FHLB advances and brokered deposits.

Asset Quality

  • Net charge-offs of $12.7 million during the third quarter of 2023 included the complete charge-off of an $11.3 million acquired loan. The charge-off had no impact on earnings or capital, as the Company expected and fully reserved for the loss at acquisition through purchase accounting.
  • Credit metrics remain strong with non-accruals and criticized assets at historically low levels. The Company remains diligent in its monitoring of these metrics, as well as changes in the broader economic environment.
  • Nonperforming loans were $41.5 million at September 30, 2023, a decline from $48.3 million at June 30, 2023. Nonperforming loans to total loans outstanding were 0.41% at September 30, 2023, 0.48% at June 30, 2023, and 0.32% at September 30, 2022.
  • Nonperforming assets to total assets decreased to 0.33% at September 30, 2023, compared to 0.37% at June 30, 2023, and increased from 0.23% at September 30, 2022.
  • The ratio of allowance for credit losses to total loans was 1.49% at September 30, 2023, 1.58% at June 30, 2023, and 1.42% at September 30, 2022. The impact of the full charge-off of an $11.3 million acquired loan was partially offset by a build of allowance relating to macroeconomic outlook.
  • 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 $306 thousand, and the average commercial loan size is $683 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 51% and 248% of total bank-level risk-based capital, respectively, compared to 52% and 256%, respectively, at June 30, 2023. On a consolidated basis, construction and land development and commercial real estate loans represent 48% and 234%, 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 September 30, 2023 of 13.9% compared to 13.5% at June 30, 2023, and 16.5% at September 30, 2022. The Total capital ratio was 15.0%, the Common Equity Tier 1 capital ratio was 13.3%, and the Tier 1 leverage ratio was 10.6% at September 30, 2023. The Company is considered “well capitalized” based on applicable U.S. regulatory capital ratio requirements.
  • Cash and cash equivalents at September 30, 2023 totaled $696.0 million.
  • The Company’s loan to deposit ratio was 83% at September 30, 2023, providing liquidity and flexibility moving forward.
  • Tangible common equity to tangible assets was 8.68% at September 30, 2023, compared to 8.53% at June 30, 2023, and 9.79% at September 30, 2022. If all held-to-maturity securities were adjusted to fair value, the tangible common equity ratio would have been 7.89%.
  • At September 30, 2023, in addition to $696.0 million in cash, the Company had $5.7 billion in available borrowing capacity, including $4.8 billion in available collateralized lines of credit, $0.6 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 September 30, 2023 represented 182% of uninsured and uncollateralized deposits.
  • In September 2023, Kroll Bond Rating Agency (“KBRA”) affirmed Seacoast’s senior unsecured debt rating (BBB+) and subordinated debt rating (BBB), with a “Stable” outlook for all long-term ratings.
  • Under its share repurchase program, the Company is authorized to purchase up to $100 million of its shares of outstanding common stock.

Recognition

  • In October 2023, Seacoast was recognized among Fortune’s Best Workplaces for Women for 2023. Seacoast sets a leading example by fostering inclusivity, empowering women, and creating a workplace where every individual can reach their full potential.
  • Seacoast has been Certified™ by Great Place To Work® for 2023. As the global authority on workplace culture, Great Place To Work® brings 30 years of groundbreaking research and data to recognize workplaces that create the conditions for an overwhelmingly positive employee experience.
  • Seacoast earned recognition from the South Florida Business Journal and the Orlando Business Journal as one of 2023’s Best Places to Work and has received similar honors the past two years from American Banker.

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
          
 3Q'23 2Q'23 1Q'23 4Q'22 3Q'22
Selected balance sheet data:         
Gross loans$10,011,186  $10,117,919  $10,134,395  $8,144,724  $6,690,845 
Total deposits 12,107,834   12,283,267   12,309,701   9,981,595   8,765,414 
Total assets 14,823,007   15,041,932   15,255,408   12,145,762   10,345,235 
          
Performance measures:         
Net income$31,414  $31,249  $11,827  $23,927  $29,237 
Net interest margin 3.57%  3.86%  4.31%  4.36%  3.67%
Pre-tax pre-provision earnings1 43,383   40,864   46,321   45,999   43,143 
Average diluted shares outstanding 85,666   85,536   80,717   71,374   61,961 
Diluted earnings per share (EPS)$0.37  $0.37  $0.15  $0.34  $0.47 
Return on (annualized):         
Average assets (ROA) 0.84%  0.84%  0.34%  0.78%  1.10%
Average tangible assets (ROTA)2 1.04   1.06   0.52   0.94   1.17 
Average tangible common equity (ROTCE)2 11.90   12.08   5.96   10.36   11.53 
Tangible common equity to tangible assets2 8.68   8.53   8.36   9.08   9.79 
Tangible book value per share2$14.26  $14.24  $14.25  $14.69  $15.98 
Efficiency ratio 62.60%  67.34%  65.43%  63.39%  57.13%
          
Adjusted operating measures1:         
Adjusted net income$39,737  $49,203  $29,241  $39,926  $32,837 
Adjusted pre-tax pre-provision earnings 54,806   64,856   71,081   66,649   48,989 
Adjusted diluted EPS 0.46   0.58   0.36   0.56   0.53 
Adjusted ROTA2 1.12%  1.41%  0.90%  1.36%  1.27%
Adjusted ROTCE2 12.79   16.08   10.34   15.05   12.48 
Adjusted efficiency ratio 60.19   56.44   53.10   51.52   53.28 
Net adjusted noninterest expense as a
percent of average tangible assets2
 2.34   2.40   2.47   2.42   2.16 
          
Other data:         
Market capitalization3$1,869,891  $1,880,407  $2,005,241  $2,233,761  $1,858,429 
Full-time equivalent employees 1,570   1,670   1,650   1,490   1,156 
Number of ATMs 97   96   97   100   79 
Full-service banking offices 77   78   83   78   58 
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP.
2The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.
3Common shares outstanding multiplied by closing bid price on last day of each period.


OTHER INFORMATION

Conference Call Information
Seacoast will host a conference call October 27th, 2023, at 10:00 a.m. (Eastern Time) to discuss the third quarter 2023 earnings results and business trends. Investors may call in (toll-free) by dialing (800) 919-1728. 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 $12.1 billion in deposits as of September 30, 2023. 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 (the “Exchange Act”), 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 the recent adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; 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, 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; 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 effects of problems encountered by other financial institutions that adversely affect Seacoast or the banking industry; 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; fraud or misconduct by internal or external actors, 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, 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; unexpected outcomes of and the costs associated with, existing or new litigation involving the Company; Seacoast’s ability to maintain adequate internal controls over financial reporting; potential claims, damages, penalties, fines 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 and sales of capital stock could trigger a reduction in the amount of net operating loss carryforwards that the Company may be able to utilize for income tax purposes; 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 operating in the Company’s market areas and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the Internet; the failure of assumptions underlying the establishment of reserves for possible credit losses; risks related to environmental, social and governance (“ESG”) matters, the scope and pace of which could alter Seacoast’s reputation and shareholder, associate, customer and third-party affiliations; 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, 2022 and quarterly reports on Form 10-Q for the quarters ended March 31, 2023 and June 30, 2023 under "Special Cautionary Notice Regarding Forward-Looking Statements" and "Risk Factors", and otherwise in the Company’s SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at www.sec.gov.

      
FINANCIAL HIGHLIGHTS  (Unaudited)    
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES         
   Quarterly Trends   Nine Months Ended
(Amounts in thousands, except ratios and per share data)3Q'232Q'231Q'234Q'223Q'22 3Q'23 3Q'22
Summary of Earnings         
Net income$ 31,414 $31,249 $11,827 $23,927 $29,237  $ 74,490  $82,580 
Adjusted net income1 39,737  49,203  29,241  39,926  32,837   118,181   96,220 
Net interest income2 119,505  127,153  131,351  119,858  88,399   378,009   246,803 
Net interest margin2,3 3.57 % 3.86% 4.31% 4.36% 3.67%  3.91 %  3.44%
Pre-tax pre-provision earnings1 43,383  40,864  46,321  45,999  43,143   130,568   118,819 
Adjusted pre-tax pre-provision earnings1 54,806  64,856  71,081  66,649  48,989   190,743   137,124 

Performance Ratios
         
Return on average assets-GAAP basis3 0.84 % 0.84% 0.34% 0.78% 1.10%  0.68 %  1.03%
Return on average tangible assets-GAAP basis3,4 1.04  1.06  0.52  0.94  1.17   0.88   1.11 
Adjusted return on average tangible assets1,3,4 1.12  1.41  0.90  1.36  1.27   1.15   1.24 
Pre-tax pre-provision return on average tangible assets1,3,4 1.38  1.33  1.58  1.69  1.71   1.43   1.57 
Adjusted pre-tax pre-provision return on average tangible assets1,3,4 1.55  1.85  2.18  2.28  1.89   1.85   1.77 
Net adjusted noninterest expense to average tangible assets1,3,4 2.34  2.40  2.47  2.42  2.16   2.40   2.05 

Return on average shareholders' equity-GAAP basis3
 6.01  6.05  2.53  6.03  8.60   4.94   8.08 
Return on average tangible common equity-GAAP basis3,4 11.90  12.08  5.96  10.36  11.53   10.09   10.82 
Adjusted return on average tangible common equity1,3,4 12.79  16.08  10.34  15.05  12.48   13.14   12.13 
Efficiency ratio5 62.60  67.34  65.43  63.39  57.13   65.19   58.45 
Adjusted efficiency ratio1 60.19  56.44  53.10  51.52  53.28   56.47   53.73 
Noninterest income to total revenue (excluding securities gains/losses) 13.22  14.63  14.55  12.84  15.72   14.16   16.74 
Tangible common equity to tangible assets4 8.68  8.53  8.36  9.08  9.79   8.68   9.79 
Average loan-to-deposit ratio 82.63  83.48  82.43  77.67  73.90   82.86   71.92 
End of period loan-to-deposit ratio 82.71  82.42  82.35  81.63  76.35   82.71   76.35 

Per Share Data
         
Net income diluted-GAAP basis$ 0.37 $0.37 $0.15 $0.34 $0.47  $ 0.89  $1.33 
Net income basic-GAAP basis 0.37  0.37  0.15  0.34  0.48   0.89   1.35 
Adjusted earnings1 0.46  0.58  0.36  0.56  0.53   1.41   1.56 

Book value per share common
 24.06  24.14  24.24  22.45  20.95   24.06   20.95 
Tangible book value per share 14.26  14.24  14.25  14.69  15.98   14.26   15.98 
Cash dividends declared 0.18  0.18  0.17  0.17  0.17   0.53   0.47 
1Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP. 2Calculated on a fully taxable equivalent basis using amortized cost.
3These ratios are stated on an annualized basis and are not necessarily indicative of future periods.
4The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.
5Defined 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). 


CONDENSED CONSOLIDATED STATEMENTS OF INCOME    (Unaudited)     
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES             
     Quarterly Trends     Nine Months Ended
(Amounts in thousands, except per share data)3Q'23 2Q'23 1Q'23 4Q'22 3Q'22 3Q'23 3Q'22
              
Interest on securities:             
Taxable$ 21,401  $20,898  $19,244 $18,530  $15,653  $ 61,543  $38,081 
Nontaxable 97   97   105  130   138   299   416 
Interest and fees on loans 149,871   148,265   135,168  105,322   73,970   433,304   210,395 
Interest on federal funds sold and other investments 8,477   5,023   3,474  3,127   1,643   16,974   4,493 
Total Interest Income 179,846   174,283   157,991  127,109   91,404   512,120   253,385 
              
Interest on deposits 38,396   27,183   16,033  3,934   1,623   81,612   3,384 
Interest on time certificates 16,461   14,477   5,552  1,358   380   36,490   1,284 
Interest on borrowed money 5,683   5,660   5,254  2,108   1,117   16,597   2,264 
Total Interest Expense 60,540   47,320   26,839  7,400   3,120   134,699   6,932 
              
Net Interest Income 119,306   126,963   131,152  119,709   88,284   377,421   246,453 
Provision for credit losses 2,694   (764)  31,598  14,129   4,676   33,528   12,054 
Net Interest Income After Provision for Credit Losses 116,612   127,727   99,554  105,580   83,608   343,893   234,399 
              
Noninterest income:             
Service charges on deposit accounts 4,648   4,560   4,242  3,996   3,504   13,450   9,713 
Interchange income 1,684   5,066   4,694  4,650   4,138   11,444   12,521 
Wealth management income 3,138   3,318   3,063  2,886   2,732   9,519   8,165 
Mortgage banking fees 410   576   426  426   434   1,412   3,052 
Insurance agency income 1,183   1,160   1,101  805      3,444    
SBA gains 613   249   322  105   108   1,184   737 
BOLI income 2,197   2,068   1,916  1,526   1,363   6,181   4,046 
Other 4,307   4,755   6,574  3,239   4,186   15,636   11,320 
  18,180   21,752   22,338  17,633   16,465   62,270   49,554 
Securities (losses) gains, net (387)  (176)  107  18   (362)  (456)  (1,114)
Total Noninterest Income 17,793   21,576   22,445  17,651   16,103   61,814   48,440 
              
Noninterest expenses:             
Salaries and wages 46,431   45,155   47,616  45,405   28,420   139,202   84,695 
Employee benefits 7,206   7,472   8,562  5,300   4,074   23,240   13,726 
Outsourced data processing costs 8,714   20,222   14,553  9,918   5,393   43,489   17,592 
Telephone / data lines 1,409   1,518   1,081  1,185   973   4,008   2,614 
Occupancy 6,349   7,065   6,938  5,457   5,046   20,352   13,082 
Furniture and equipment 2,052   2,345   2,267  1,944   1,462   6,664   4,476 
Marketing 1,876   2,047   2,238  1,772   1,461   6,161   4,514 
Legal and professional fees 2,679   4,062   7,479  9,174   3,794   14,220   11,529 
FDIC assessments 2,258   2,116   1,443  889   760   5,817   2,248 
Amortization of intangibles 7,457   7,654   6,727  4,763   1,446   21,838   4,338 
Foreclosed property expense and net loss (gain) on sale 274   (57)  195  (411)  9   412   (1,123)
Provision for credit losses on unfunded commitments       1,239     1,015   1,239   1,157 
Other 7,210   8,266   7,137  6,114   7,506   22,613   17,576 
Total Noninterest Expense 93,915   107,865   107,475  91,510   61,359   309,255   176,424 
              
Income Before Income Taxes 40,490   41,438   14,524  31,721   38,352   96,452   106,415 
Income taxes 9,076   10,189   2,697  7,794   9,115   21,962   23,835 
Net Income$ 31,414  $31,249  $11,827 $23,927  $29,237  $ 74,490  $82,580 
              
Per share of common stock:             
              
Net income diluted$ 0.37  $0.37  $0.15 $0.34  $0.47  $ 0.89  $1.33 
Net income basic 0.37   0.37   0.15  0.34   0.48   0.89   1.35 
Cash dividends declared 0.18   0.18   0.17  0.17   0.17   0.53   0.47 
              
Average diluted shares outstanding 85,666   85,536   80,717  71,374   61,961   83,993   61,867 
Average basic shares outstanding 85,142   85,022   80,151  70,770   61,442   83,457   61,327 
              



CONDENSED CONSOLIDATED BALANCE SHEETS   (Unaudited)     
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES         
 September 30, June 30, March 31, December 31, September 30, 
(Amounts in thousands) 2023   2023   2023   2022   2022  
Assets          
Cash and due from banks$ 182,036  $164,193  $180,607  $120,748  $176,463  
Interest bearing deposits with other banks 513,946   563,690   610,636   81,192   42,152  
Total Cash and Cash Equivalents 695,982   727,883   791,243   201,940   218,615  
           
Time deposits with other banks 4,357   2,987   3,236   3,236   4,481  
           
Debt Securities:          
Available for sale (at fair value) 1,841,845   1,916,231   2,015,967   1,871,742   1,860,734  
Held to maturity (at amortized cost) 691,404   707,812   737,911   747,408   774,706  
Total Debt Securities 2,533,249   2,624,043   2,753,878   2,619,150   2,635,440  
           
Loans held for sale 2,979   5,967   2,838   3,151   1,620  
           
Loans 10,011,186   10,117,919   10,134,395   8,144,724   6,690,845  
Less: Allowance for credit losses (149,661)  (159,715)  (155,640)  (113,895)  (95,329) 
Net Loans 9,861,525   9,958,204   9,978,755   8,030,829   6,595,516  
           
Bank premises and equipment, net 115,749   116,959   116,522   116,892   81,648  
Other real estate owned 7,216   7,526   7,756   2,301   2,419  
Goodwill 731,970   732,910   728,396   480,319   286,606  
Other intangible assets, net 102,397   109,716   117,409   75,451   18,583  
Bank owned life insurance 296,763   293,880   292,545   237,824   209,087  
Net deferred tax assets 131,602   127,941   124,301   94,457   83,139  
Other assets 339,218   333,916   338,529   280,212   208,081  
Total Assets$ 14,823,007  $15,041,932  $15,255,408  $12,145,762  $10,345,235  
           
Liabilities and Shareholders' Equity          
Liabilities          
Deposits          
Noninterest demand$ 3,868,132  $4,139,052  $4,554,509  $4,070,973  $3,529,489  
Interest-bearing demand 2,800,152   2,816,656   2,676,320   2,337,590   2,170,251  
Savings 721,558   824,255   940,702   1,064,392   938,081  
Money market 3,143,897   2,859,164   2,893,128   1,985,974   1,700,737  
Other time certificates 821,406   628,036   598,483   369,389   312,840  
Brokered time certificates 307,963   591,503   371,392   3798     
Time certificates of more than $250,000 444,726   424,601   275,167   149,479   114,016  
Total Deposits 12,107,834   12,283,267   12,309,701   9,981,595   8,765,414  
           
Securities sold under agreements to repurchase 276,450   290,156   267,606   172,029   94,191  
Federal Home Loan Bank borrowings 110,000   160,000   385,000   150000     
Subordinated debt, net 106,136   105,970   105,804   84,533   71,857  
Other liabilities 174,193   148,507   136,213   149,830   125,971  
Total Liabilities 12,774,613   12,987,900   13,204,324   10,537,987   9,057,433  
           
Shareholders' Equity          
Common stock 8,515   8,509   8,461   7,162   6,148  
Additional paid in capital 1,813,068   1,809,431   1,803,898   1,377,802   1,068,241  
Retained earnings 453,117   437,087   421,271   423,863   412,166  
Treasury stock (14,035)  (14,171)  (13,113)  (13,019)  (11,539) 
  2,260,665   2,240,856   2,220,517   1,795,808   1,475,016  
Accumulated other comprehensive (loss) income, net (212,271)  (186,824)  (169,433)  (188,033)  (187,214) 
Total Shareholders' Equity 2,048,394   2,054,032   2,051,084   1,607,775   1,287,802  
Total Liabilities & Shareholders' Equity$ 14,823,007  $15,041,932  $15,255,408  $12,145,762  $10,345,235  
           
Common shares outstanding 85,150   85,086   84,609   71,618   61,476  



CONSOLIDATED QUARTERLY FINANCIAL DATA   (Unaudited)   
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES           
            
(Amounts in thousands) 3Q'23 2Q'23 1Q'23 4Q'22 3Q'22 
Credit Analysis           
Net charge-offs (recoveries) $ 12,748  $705  $3,188  $782  $103  
Net charge-offs (recoveries) to average loans  0.50 %  0.03%  0.14%  0.04%  0.0001  
Allowance for credit losses  149,661   159,715   155,640   113,895   95,329  
            
Non-acquired loans at end of period  6,343,121   6,264,044   6,048,453   5,944,194   5,653,357  
Acquired loans at end of period  3,668,065   3,853,875   4,085,942   2,200,530   1,037,488  
Total Loans $ 10,011,186  $10,117,919  $10,134,395  $8,144,724  $6,690,845  
            
Total allowance for credit losses to total loans at end of period  1.49   1.58   1.54   1.40   1.42  
Purchase discount on acquired loans at end of period  4.86   4.98   5.02   4.25   1.81  
            
End of Period           
Nonperforming loans $ 41,508  $48,326  $50,787  $28,843  $21,464  
Other real estate owned  221   530   530   530   109  
Properties previously used in bank operations included in other real estate owned  6,995   6,996   7,226   1,771   2,310  
Total Nonperforming Assets $ 48,724  $55,852  $58,543  $31,144  $23,883  
            
Nonperforming Loans to Loans at End of Period  0.41 %  0.48%  0.50%  0.35%  0.32% 
Nonperforming Assets to Total Assets at End of Period  0.33   0.37   0.38   0.26   0.23  
            
  September 30, June 30, March 31, December 31, September 30, 
Loans  2023   2023   2023   2022   2022  
Construction and land development $ 793,736  $794,371  $757,835  $587,332  $361,913  
Commercial real estate - owner occupied  1,675,881   1,669,369   1,652,491   1,478,302   1,253,459  
Commercial real estate - non-owner occupied  3,285,974   3,370,211   3,412,051   2,589,774   2,107,614  
Residential real estate  2,418,903   2,396,352   2,354,394   1,849,503   1,599,765  
Commercial and financial  1,584,050   1,610,895   1,650,485   1,348,636   1,182,384  
Consumer  248,540   272,082   301,740   286,587   180,416  
Paycheck Protection Program  4,102   4,639   5,399   4,590   5,294  
Total Loans $ 10,011,186  $10,117,919  $10,134,395  $8,144,724  $6,690,845  
  



AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1   (Unaudited)           
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES                 
                   
                   
 3Q'23 2Q'23 3Q'22 
 Average   Yield/ Average   Yield/ Average   Yield/ 
(Amounts in thousands)Balance Interest Rate Balance Interest Rate Balance Interest Rate 
                   
Assets                  
Earning assets:                  
Securities:                  
Taxable$ 2,575,002  $ 21,401 3.32% $2,673,633  $20,898 3.13% $2,665,104  $15,653 2.35% 
Nontaxable 15,280   119 3.11   15,621   120 3.08   22,064   174 3.15  
Total Securities 2,590,282   21,520 3.32   2,689,254   21,018 3.13   2,687,168   15,827 2.36  
                   
Federal funds sold 547,576   7,415 5.37   327,433   4,313 5.28   203,815   1,062 2.07  
Interest bearing deposits with other banks and other investments 90,039   1,062 4.68   90,783   710 3.14   45,193   581 5.10  
                  
                   
Loans excluding PPP loans 10,039,270   150,037 5.93   10,096,394   148,420 5.90   6,597,828   73,730 4.43  
PPP loans 4,341   11 1.01   4,834   12 1.00   10,114   320 12.54  
Total Loans 10,043,611   150,048 5.93   10,101,228   148,432 5.89   6,607,942   74,050 4.45  
                   
Total Earning Assets 13,271,508   180,045 5.38   13,208,698   174,473 5.30   9,544,118   91,520 3.80  
                   
Allowance for credit losses (158,440)      (156,207)      (91,348)     
Cash and due from banks 168,931       165,625       331,947      
Premises and equipment 116,704       117,726       76,357      
Intangible assets 839,787       842,988       305,935      
Bank owned life insurance 295,272       293,251       208,193      
Other assets including deferred tax assets 372,241       415,208       210,136      
                   
Total Assets$ 14,906,003      $14,887,289      $10,585,338      
                   
Liabilities and Shareholders' Equity                  
Interest-bearing liabilities:                  
Interest-bearing demand$ 2,804,243  $ 15,013 2.12% $2,666,314  $7,560 1.14% $2,215,899  $757 0.14% 
Savings 770,503   465 0.24   906,936   427 0.19   944,128   65 0.03  
Money market 2,972,495   22,918 3.06   2,806,672   19,196 2.74   1,806,014   802 0.18  
Time deposits 1,619,572   16,461 4.03   1,425,344   14,477 4.07   445,840   380 0.34  
Securities sold under agreements to repurchase 327,711   2,876 3.48   244,824   1,593 2.61   111,902   309 1.10  
Federal Home Loan Bank borrowings 111,087   888 3.17   251,596   2,272 3.62         
Subordinated debt 106,036   1,919 7.18   105,861   1,795 6.80   71,810   808 4.46  
                   
Total Interest-Bearing Liabilities 8,711,647   60,540 2.76   8,407,547   47,320 2.26   5,595,593   3,121 0.22  
                   
Noninterest demand 3,987,761       4,294,251       3,529,844      
Other liabilities 133,846       114,962       110,426      
Total Liabilities 12,833,254       12,816,760       9,235,863      
                   
Shareholders' equity 2,072,747       2,070,529       1,349,475      
                   
Total Liabilities & Equity$14,906,003      $14,887,289      $10,585,338      
                   
Cost of deposits    1.79%     1.38%     0.09% 
Interest expense as a % of earning assets    1.81%     1.44%     0.13% 
Net interest income as a % of earning assets  $119,505 3.57%   $127,153 3.86%   $88,399 3.67% 
                   
                   
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.     



AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1   (Unaudited)     
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES          
             
 Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 
 Average   Yield/ Average   Yield/ 
(Amounts in thousands)Balance Interest Rate Balance Interest Rate 
             
Assets            
Earning assets:            
Securities:            
Taxable$ 2,649,127  $ 61,543 3.10% $2,530,742  $38,081 2.01% 
Nontaxable 15,721   370 3.14   22,842   526 3.07  
Total Securities 2,664,848   61,913 3.10   2,553,584   38,607 2.02  
             
Federal funds sold 336,022   12,444 4.95   526,890   2,693 0.68  
Interest bearing deposits with other banks and other investments 90,511   4,530 6.69   45,483   1,801 5.29  
             
             
Loans excluding PPP loans 9,835,653   433,786 5.90   6,444,253   208,052 4.32  
PPP loans 4,831   35 0.97   32,597   2,584 10.60  
Total Loans 9,840,484   433,821 5.89   6,476,850   210,636 4.35  
             
Total Earning Assets 12,931,865   512,708 5.30   9,602,807   253,737 3.53  
             
Allowance for credit losses (151,613)      (89,700)     
Cash and due from banks 185,426       362,369      
Premises and equipment 116,840       75,617      
Intangible assets 811,483       305,895      
Bank owned life insurance 287,756       206,854      
Other assets including deferred tax assets 402,175       220,790      
             
Total Assets$ 14,583,932      $10,684,632      
             
Liabilities and Shareholders' Equity            
Interest-bearing liabilities:            
Interest-bearing demand$ 2,642,180  $ 25,780 1.30% $2,192,331  $1,240 0.08% 
Savings 909,184   1,292 0.19   943,982   194 0.03  
Money market 2,831,747   54,540 2.58   1,906,407   1,951 0.14  
Time deposits 1,288,736   36,490 3.79   500,482   1,284 0.34  
Securities sold under agreements to repurchase 249,242   5,333 2.86   116,805   442 0.51  
Federal Home Loan Bank borrowings 214,415   5,936 3.70         
Subordinated debt 103,469   5,328 6.88   71,741   1,823 3.40  
             
Total Interest-Bearing Liabilities 8,238,973   134,699 2.19   5,731,748   6,934 0.16  
             
Noninterest demand 4,204,389       3,462,931      
Other liabilities 126,479       123,281      
Total Liabilities 12,569,841       9,317,960      
             
Shareholders' equity 2,014,083       1,366,672      
             
Total Liabilities & Equity$14,583,932      $10,684,632      
             
Cost of deposits    1.33%     0.07% 
Interest expense as a % of earning assets    1.39%     0.10% 
Net interest income as a % of earning assets  $378,009 3.91%   $246,803 3.44% 
             
             
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)September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 
Customer Relationship Funding          
Noninterest demand          
Commercial$ 3,089,488 $3,304,761 $3,622,441 $3,148,778 $2,827,591 
Retail 570,727  615,536  673,686  764,274  447,848 
Public funds 134,649  152,159  194,977  112,553  210,662 
Other 73,268  66,596  63,405  45,368  43,388 
Total Noninterest Demand 3,868,132  4,139,052  4,554,509  4,070,973  3,529,489 
           
Interest-bearing demand          
Commercial 1,618,755  1,555,486  1,233,845  886,894  759,286 
Retail 994,224  1,058,993  1,209,664  1,191,192  1,199,112 
Brokered     44,474  54,777  81,799 
Public funds 187,173  202,177  188,337  204,727  130,054 
Total Interest-Bearing Demand 2,800,152  2,816,656  2,676,320  2,337,590  2,170,251 
           
Total transaction accounts          
Commercial 4,708,243  4,860,247  4,856,286  4,035,672  3,586,877 
Retail 1,564,951  1,674,529  1,883,350  1,955,466  1,646,960 
Brokered     44,474  54,777  81,799 
Public funds 321,822  354,336  383,314  317,280  340,716 
Other 73,268  66,596  63,405  45,368  43,388 
Total Transaction Accounts 6,668,284  6,955,708  7,230,829  6,408,563  5,699,740 

Savings
          
Commercial 79,731  101,908  108,023  91,943  71,807 
Retail 641,827  722,347  832,679  972,449  866,274 
Total Savings 721,558  824,255  940,702  1,064,392  938,081 

Money market
          
Commercial 1,625,455  1,426,348  1,542,220  932,518  788,009 
Retail 1,362,390  1,275,721  1,279,712  984,561  857,914 
Public funds 156,052  157,095  71,196  68,895  54,814 
Total Money Market 3,143,897  2,859,164  2,893,128  1,985,974  1,700,737 

Brokered time certificates
 307,963  591,503  371,392  3798   
Other time certificates 1,266,132  1,052,637  873,650  518,868  426,856 
  1,574,095  1,644,140  1,245,042  522,666  426,856 
Total Deposits$ 12,107,834 $12,283,267 $12,309,701 $9,981,595 $8,765,414 
           
Customer sweep accounts 276,450  290,156  267,606  172,029  94,191 


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   Nine Months Ended
(Amounts in thousands, except per share data)3Q'232Q'231Q'234Q'223Q'22 3Q'233Q'22
Net Income$ 31,414 $31,249 $11,827 $23,927 $29,237  $ 74,490 $82,580 
         
Total noninterest income 17,793  21,576  22,445  17,651  16,103   61,814  48,440 
Securities losses (gains), net 387  176  (107) (18) 362   456  1114 
BOLI benefits on death (included in other income)     (2,117)      (2,117)  
Total Adjustments to Noninterest Income 387  176  (2,224) (18) 362   (1,661) 1,114 
Total Adjusted Noninterest Income 18,180  21,752  20,221  17,633  16,465   60,153  49,554 
         
Total noninterest expense 93,915  107,865  107,475  91,510  61,359   309,255  176,424 
Salaries and wages   (1,573) (4,240) (5,680)    (5,813) (3,605)
Outsourced data processing costs   (10,904) (6,551) (2,582)    (17,455) (1,052)
Legal and professional fees   (1,664) (4,789) (6,485) (1,791)  (6,453) (6,055)
Other categories   (1,507) (1,952) (1,393) (263)  (3,459) (1,073)
Total merger related charges   (15,648) (17,532) (16,140) (2,054)  (33,180) (11,785)
Amortization of intangibles (7,457) (7,654) (6,727) (4,763) (1,446)  (21,838) (4,338)
Branch reductions and other expense initiatives (3,305) (571) (1,291) (176) (960)  (5,167) (1,034)
Total Adjustments to Noninterest Expense (10,762) (23,873) (25,550) (21,079) (4,460)  (60,185) (17,157)
Total Adjusted Noninterest Expense 83,153  83,992  81,925  70,431  56,899   249,070  159,267 
         
Income Taxes 9,076  10,189  2,697  7,794  9,115   21,962  23,835 
Tax effect of adjustments 2,826  6,095  5,912  5,062  1,222   14,833  4,631 
Adjusted Income Taxes 11,902  16,284  8,609  12,856  10,337   36,795  28,466 
Adjusted Net Income$ 39,737 $49,203 $29,241 $39,926 $32,837  $ 118,181 $96,220 
         
Earnings per diluted share, as reported$ 0.37 $0.37 $0.15 $0.34 $0.47  $ 0.89 $1.33 
Adjusted Earnings per Diluted Share 0.46  0.58  0.36  0.56  0.53   1.41  1.56 
Average diluted shares outstanding 85,666  85,536  80,717  71,374  61,961   83,993  61,867 
         
Adjusted Noninterest Expense$ 83,153 $83,992 $81,925 $70,431 $56,899  $ 249,070 $159,267 
Provision for credit losses on unfunded commitments     (1,239)   (1,015)  (1,239) (1,157)
Foreclosed property expense and net loss (gain) on sale (274) 57  (195) 411  (9)  (412) 1,123 
Net Adjusted Noninterest Expense$ 82,879 $84,049 $80,491 $70,842 $55,875  $ 247,419 $159,233 
         
Revenue$ 137,099 $148,539 $153,597 $137,360 $104,387  $ 439,235 $294,893 
Total Adjustments to Revenue 387  176  (2224) (18) 362   (1,661) 1,114 
Impact of FTE adjustment 199  190  199  149  115   588  350 
Adjusted Revenue on a fully taxable equivalent basis$ 137,685 $148,905 $151,572 $137,491 $104,864  $ 438,162 $296,357 
Adjusted Efficiency Ratio 60.19 % 56.44% 53.10% 51.52% 53.28%  56.47 % 53.73%
         
Net Interest Income$ 119,306 $126,963 $131,152 $119,709 $88,284  $ 377,421 $246,453 
Impact of FTE adjustment 199  190  199  149  115   588  350 
Net Interest Income including FTE adjustment$ 119,505 $127,153 $131,351 $119,858 $88,399  $ 378,009 $246,803 
Total noninterest income 17,793  21,576  22,445  17,651  16,103   61,814  48,440 
Total noninterest expense 93,915  107,865  107,475  91,510  61,359   309,255  176,424 
Pre-Tax Pre-Provision Earnings$ 43,383 $40,864 $46,321 $45,999 $43,143  $ 130,568 $118,819 
Total Adjustments to Noninterest Income 387  176  (2224) (18) 362   (1,661) 1,114 
Total Adjustments to Noninterest Expense (11,036) (23,816) (26,984) (20,668) (5,484)  (61,836) (17,191)
Adjusted Pre-Tax Pre-Provision Earnings$ 54,806 $64,856 $71,081 $66,649 $48,989  $ 190,743 $137,124 
         
Average Assets$ 14,906,003 $14,887,289 $13,947,976 $12,139,856 $10,585,338  $ 14,583,932 $10,684,632 
Less average goodwill and intangible assets (839,787) (842,988) (750,694) (521,412) (305,935)  (811,483) (305,895)
Average Tangible Assets