Seacoast Reports Fourth Quarter and Full Year 2023 Results


Well-Positioned Balance Sheet with Strong Capital and Liquidity

Strategic Expense Measures Executed

Robust Capital Position Builds Significantly Quarter over Quarter

STUART, Fla., Jan. 25, 2024 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the fourth quarter of 2023 of $29.5 million, or $0.35 per diluted share, compared to $31.4 million, or $0.37 per diluted share in the third quarter of 2023 and $23.9 million, or $0.34 per diluted share in the fourth quarter of 2022. For the year ended December 31, 2023, net income was $104.0 million, or $1.23 per diluted share, compared to $106.5 million, or $1.66 per diluted share, for the year ended December 31, 2022.

Adjusted net income1 for the fourth quarter of 2023 was $36.5 million, or $0.43 per diluted share, compared to $39.7 million, or $0.46 per diluted share in the third quarter of 2023 and $39.9 million, or $0.56 per diluted share in the fourth quarter of 2022. Adjusted net income1 for the year ended December 31, 2023 was $154.7 million, or $1.83 per diluted share, compared to $136.1 million, or $2.12 per diluted share, for the year ended December 31, 2022.

Pre-tax pre-provision earnings1 were $42.0 million in the fourth quarter of 2023, a decrease of 3% compared to the third quarter of 2023 and a decrease of 9% compared to the fourth quarter of 2022. Pre-tax pre-provision earnings1 for the year ended December 31, 2023 were $172.6 million, an increase of $7.8 million, or 5%, when compared to the year ended December 31, 2022. Adjusted pre-tax pre-provision earnings1 were $51.9 million in the fourth quarter of 2023, a decrease of 5% compared to the third quarter of 2023 and a decrease of 22% compared to the fourth quarter of 2022. Adjusted pre-tax pre-provision earnings1 for the year ended December 31, 2023 were $242.6 million, an increase of $38.9 million, or 19%, when compared to the year ended December 31, 2022.

For the fourth quarter of 2023, return on average tangible assets was 0.99% and return on average tangible shareholders' equity was 11.22%, compared to 1.04% and 11.90%, respectively, in the prior quarter, and 0.94% and 10.36%, respectively, in the prior year quarter. Adjusted return on average tangible assets1 in the fourth quarter of 2023 was 1.04% and adjusted return on average tangible shareholders' equity1 was 11.80%, compared to 1.12% and 12.79%, respectively, in the prior quarter, and 1.36% and 15.05%, respectively, in the prior year quarter. For the year ended December 31, 2023, return on average tangible assets was 0.91% and return on average tangible shareholders' equity was 10.38%, compared to 1.06% and 10.70%, respectively, for the year ended December 31, 2022. For the year ended December 31, 2023, adjusted return on average tangible assets1 was 1.12% and adjusted return on average tangible shareholders' equity1 was 12.80%, compared to 1.27% and 12.86%, respectively, for the year ended December 31, 2022.

Charles M. Shaffer, Seacoast's Chairman and CEO, said, "Seacoast once again delivered a quarter of robust financial performance, remaining steadfast in our commitment to driving growth in shareholder value. Throughout the quarter, our dedication to disciplined expense management effectively countered margin compression, which we believe has positioned the Company optimally for the coming year. Looking ahead to the first quarter of 2024, we will execute the second phase of our expense initiative, anticipating one-time charges of approximately $5 million and a reduction in annual expenses of approximately $15 million."

Shaffer added, "Early in the fourth quarter, we took advantage of market conditions and repurchased 546,200 shares of our common stock at $19.80 per share. Even with this repurchase activity, the ratio of tangible common equity to tangible assets increased to 9.31% and tangible book value per share increased to $15.08.”

Shaffer concluded, "As we embark on 2024, we remain diligently focused on maintaining our conservative balance sheet principles and carefully managing our expense base while investing to drive low-cost deposit growth. We believe this rigorous approach will support solid capital growth, maintain a broadly diversified and stable funding base, and continue to bolster the Company’s fortress balance sheet while increasing franchise value over the long run.”

Financial Results

Income Statement

  • Net income was $29.5 million, or $0.35 per diluted share, for the fourth quarter of 2023 compared to net income of $31.4 million, or $0.37 per diluted share, for the prior quarter, and $23.9 million, or $0.34 per diluted share, for the prior year quarter. For the year ended December 31, 2023, net income was $104.0 million, or $1.23 per diluted share, compared to $106.5 million, or $1.66 per diluted share, for the year ended December 31, 2022. Adjusted net income1 for the fourth quarter of 2023 was $36.5 million, or $0.43 per diluted share, compared to $39.7 million, or $0.46 per diluted share, for the prior quarter, and $39.9 million, or $0.56 per diluted share, for the prior year quarter. For the year ended December 31, 2023, adjusted net income1 was $154.7 million, or $1.83 per diluted share, compared to $136.1 million, or $2.12 per diluted share, for the year ended December 31, 2022.
  • Net revenues were $128.2 million in the fourth quarter of 2023, a decrease of $8.9 million, or 7%, compared to the prior quarter, and a decrease of $9.2 million, or 7%, compared to the prior year quarter. For the year ended December 31, 2023, net revenues were $567.4 million, an increase of $135.1 million, or 31%, compared to the year ended December 31, 2022. Adjusted revenues on a fully taxable equivalent basis1 were $130.8 million in the fourth quarter of 2023, a decrease of $6.9 million, or 5%, compared to the prior quarter, and a decrease of $6.7 million, or 5%, compared to the prior year quarter. For the year ended December 31, 2023, adjusted revenues on a fully taxable equivalent basis1 were $569.0 million, an increase of $135.1 million, or 31%, compared to the year ended December 31, 2022.
  • Pre-tax pre-provision earnings1 were $42.0 million in the fourth quarter of 2023, a decrease of 3% compared to the third quarter of 2023 and a decrease of 9% compared to the fourth quarter of 2022. Pre-tax pre-provision earnings1 for the year ended December 31, 2023 were $172.6 million, an increase of $7.8 million, or 5%, when compared to the year ended December 31, 2022. Adjusted pre-tax pre-provision earnings1 were $51.9 million in the fourth quarter of 2023, a decrease of 5% compared to the third quarter of 2023 and a decrease of 22% compared to the fourth quarter of 2022. Adjusted pre-tax pre-provision earnings1 for the year ended December 31, 2023 were $242.6 million, an increase of $38.9 million, or 19%, compared to the year ended December 31, 2022
  • Net interest income totaled $110.8 million in the fourth quarter of 2023, a decrease of $8.5 million, or 7%, from the third quarter of 2023 and a decrease of $8.9 million, or 7%, compared to the fourth quarter of 2022. During the fourth quarter of 2023, higher interest expense on deposits was driven by higher rates and changes in product mix. Accretion on acquired loans totaled $11.3 million in the fourth quarter of 2023, $14.8 million in the third quarter of 2023, and $9.7 million in the fourth quarter of 2022. For the year ended December 31, 2023, net interest income was $488.2 million, an increase of $122.1 million, or 33%, compared to the year ended December 31, 2022. Accretion on acquired loans totaled $56.7 million for the year ended December 31, 2023, compared to $18.4 million for the year ended December 31, 2022. The year-over-year increase in accretion reflects the impact of purchase marks from bank acquisitions in late 2022 and early 2023.
  • Net interest margin decreased 21 basis points to 3.36% in the fourth quarter of 2023 compared to 3.57% in the third quarter of 2023. Excluding the effects of accretion on acquired loans, net interest margin decreased 11 basis points to 3.02% in the fourth quarter of 2023 compared to 3.13% in the third quarter of 2023. Loan yields contracted eight basis points from the prior quarter to 5.85% due to lower accretion of purchase discount on acquired loans. Excluding the effects of accretion on acquired loans, loan yields increased six basis points, from 5.34% in the third quarter of 2023 to 5.40% in the fourth quarter of 2023. Securities yields increased 10 basis points to 3.42%, compared to 3.32% in the prior quarter. The cost of deposits increased 21 basis points, from 1.79% in the prior quarter, to 2.00% for the fourth quarter of 2023.
  • Noninterest income totaled $17.3 million in the fourth quarter of 2023, a decrease of $0.5 million, or 3%, compared to the prior quarter, and a decrease of $0.3 million, or 2%, compared to the prior year quarter. Results for the fourth quarter of 2023 included $2.9 million in losses on the sale of approximately $82.9 million, or 3%, of the bank’s investment securities portfolio. The proceeds were reinvested into longer-duration, higher-yielding securities, with an expected earnback on the transaction of approximately 1.3 years. Offsetting realized losses on sales of securities during the fourth quarter of 2023 was a $0.5 million increase in the value of investments in mutual funds holding CRA-qualified debt securities. Other changes compared to the third quarter of 2023 included the following:
    • Interchange income increased $0.7 million, or 44%, to $2.4 million, benefiting from an annual volume-based incentive earned from the payment network provider. The Durbin amendment, which limits network interchange fees earned on debit card transactions, became effective for Seacoast on July 1, 2023.
    • SBA gains increased $0.3 million, or 50%, to $0.9 million due to higher saleable originations.
    • Other income increased $0.4 million, or 8%, to $4.7 million, reflecting higher loan swap-related income.
  • The provision for credit losses was $4.0 million in the fourth quarter of 2023, compared to $2.7 million in the third quarter of 2023 and $14.1 million in the fourth quarter of 2022. Included in the fourth quarter of 2022 was a $15.0 million day-1 provision associated with two bank acquisitions.
  • Noninterest expense was $86.4 million in the fourth quarter of 2023, a decrease of $7.5 million, or 8%, compared to the prior quarter, and a decrease of $5.1 million, or 6%, compared to the prior year quarter. For the year ended December 31, 2023, noninterest expense was $395.6 million, compared to $267.9 million for the year ended December 31, 2022. Changes compared to the third quarter of 2023 included:
    • Salaries and wages decreased $8.0 million to $38.4 million. The third quarter of 2023 included $3.2 million in severance-related expenses arising from the Company’s reduction in workforce. Of the remaining $4.8 million decrease, $1.7 million reflects the full quarter impact of the workforce reduction on salaries expense, and $2.8 million is attributed to higher loan production resulting in higher deferral of salary-related costs.
    • Marketing expense increased $1.1 million to $3.0 million reflecting additional investments in branding and targeted campaigns.
    • Legal and professional fees increased $0.6 million to $3.3 million in the fourth quarter of 2023, primarily the result of one-time legal fees associated with a closed matter.
    • FDIC assessments increased $0.6 million to $2.8 million, with the full year expense reflecting the year-over-year growth in the Company’s asset size.
    • Foreclosed property expense increased $0.3 million to $0.6 million in the fourth quarter of 2023 due to write-downs in the value of properties previously used in bank operations.
    • Other noninterest expenses decreased $0.7 million to $6.5 million, benefiting from ongoing expense discipline.
  • Seacoast recorded $8.3 million of income tax expense in the fourth quarter of 2023, compared to $9.1 million in the third quarter of 2023, and $7.8 million in the fourth quarter of 2022. Tax benefits related to stock-based compensation totaled $0.6 million in the fourth quarter of 2023, were nominal in the third quarter of 2023, and totaled $0.2 million in the fourth quarter of 2022.
  • The efficiency ratio was 60.32% in the fourth quarter of 2023, compared to 62.60% in the third quarter of 2023 and 63.39% in the prior year quarter. The adjusted efficiency ratio1 was 60.32% in the fourth quarter of 2023, compared to 60.19% in the third quarter of 2023 and 51.52% in the prior year quarter. The efficiency ratio for the year ended December 31, 2023 was 64.07% compared to 60.01% for the year ended December 31, 2022. The adjusted efficiency ratio1 for the year ended December 31, 2023 was 57.35% compared to 53.03% for the year ended December 31, 2022. The increase in the efficiency ratio in 2023 reflects the impact of higher deposit rates.

Balance Sheet

  • At December 31, 2023, the Company had total assets of $14.6 billion and total shareholders' equity of $2.1 billion. Book value per share was $24.84 as of December 31, 2023, compared to $24.06 as of September 30, 2023, and $22.45 as of December 31, 2022. Tangible book value per share totaled $15.08 as of December 31, 2023 compared to $14.26 at September 30, 2023, and $14.69 as of December 31, 2022.
  • Debt securities totaled $2.5 billion as of December 31, 2023, a decrease of $16.9 million, or 1%, compared to September 30, 2023. Debt securities include approximately $1.8 billion in securities held at fair value and classified as available for sale. Unrealized losses on debt securities available for sale declined by $73.4 million, or 26%, in the fourth quarter of 2023, benefiting from changes in market interest rates. Unrealized losses on available for sale securities are fully reflected in the value presented on the balance sheet. The portfolio also includes $680.3 million in securities classified as held to maturity with a fair value of $558.4 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 increased $51.8 million during the fourth quarter of 2023, totaling $10.1 billion as of December 31, 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 originations were $477.9 million in the fourth quarter of 2023, an increase of 95% compared to $244.6 million in the third quarter of 2023. New add on yields were near 8% during the fourth quarter of 2023.
    • Commercial originations were $334.2 million during the fourth quarter of 2023, compared to $94.0 million in the third quarter of 2023 and $482.2 million in the fourth quarter of 2022.
    • SBA originations were $25.0 million during the fourth quarter of 2023, compared to $12.5 million in the third quarter of 2023 and $7.4 million in the fourth quarter of 2022.
    • Consumer originations in the fourth quarter of 2023 decreased to $61.8 million from $76.5 million in the third quarter of 2023 and from $88.7 million in the fourth quarter of 2022.
    • Closed residential loans retained in the portfolio totaled $41.2 million in the fourth quarter of 2023, compared to $44.0 million in the third quarter of 2023 and $74.3 million in the fourth quarter of 2022.
    • Residential loans originated for sale in the secondary market totaled $15.6 million in the fourth quarter of 2023, compared to $17.6 million in the third quarter of 2023 and $10.7 million in the fourth quarter of 2022.
  • Loan pipelines (loans in underwriting and approval or approved and not yet closed) totaled $393.0 million as of December 31, 2023, an increase of 11% from September 30, 2023 and a decrease of 13% from December 31, 2022.
    • Commercial pipelines were $306.5 million as of December 31, 2023, an increase of 18% from $259.4 million at September 30, 2023, and a decrease of 21% from $389.7 million at December 31, 2022.
    • SBA pipelines were $20.6 million as of December 31, 2023, compared to $41.4 million at September 30, 2023 and $6.0 million at December 31, 2022.
    • Consumer pipelines were $18.7 million as of December 31, 2023, a decrease of $5.7 million from $24.5 million at September 30, 2023, and a decrease of 49% from $36.6 million at December 31, 2022.
    • Retained residential pipelines were $44.4 million as of December 31, 2023, compared to $20.9 million at September 30, 2023, and $17.1 million at December 31, 2022. Residential saleable pipelines were $2.7 million as of December 31, 2023, compared to $6.8 million at September 30, 2023, and $4.2 million at December 31, 2022.
  • Total deposits were $11.8 billion as of December 31, 2023, a decrease of $330.9 million when compared to September 30, 2023, and an increase of $1.8 billion, or 18%, compared to December 31, 2022. Seacoast’s granular, longstanding deposit base is a hallmark of our franchise and serves as a significant source of strength.
    • Total customer funding, which includes sweep repurchase accounts and excludes brokered deposits, was $12.0 billion, declining modestly by $47 million during the fourth quarter of 2023.
    • Quarter over quarter, attorney IOTA and title company balances declined by nearly $100 million due to lower real estate activity at year-end. This seasonal dynamic also occurred in the fourth quarter of 2022.
    • At December 31, 2023, transaction account balances represented 54% of overall deposits.
    • Noninterest demand deposits represent 30% of overall deposits.
    • 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 $153 million at December 31, 2023.
    • Uninsured deposits represented only 35% of overall deposit accounts as of December 31, 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 145% of uninsured deposits, and 176% of uninsured and uncollateralized deposits.
    • Consumer deposits represent 40% of overall deposit funding with an average consumer customer balance of $24 thousand. Commercial deposits represent 60% of overall deposit funding with an average business customer balance of $109 thousand.
  • Federal Home Loan Bank advances totaled $50.0 million at December 31, 2023 with an interest rate of 3.23%. In the aggregate, borrowed funds, including FHLB advances, subordinated debt and brokered deposits represented only 2.2% of total liabilities as of December 31, 2023. During the fourth quarter of 2023, the Company paid down $245.6 million in FHLB advances and brokered deposits.

Asset Quality

  • Credit metrics remain strong, though nonperforming, criticized, and classified loans have increased slightly from historic low levels. The Company maintains robust concentration management, focused on sustaining a diversified and granular loan portfolio.
  • Nonperforming loans were $65.1 million at December 31, 2023, an increase from $41.5 million at September 30, 2023. Nonperforming loans to total loans outstanding were 0.65% at December 31, 2023, 0.41% at September 30, 2023, and 0.35% at December 31, 2022.
  • Nonperforming assets to total assets increased to 0.50% at December 31, 2023, compared to 0.33% at September 30, 2023, and 0.26% at December 31, 2022.
  • The ratio of allowance for credit losses to total loans was 1.48% at December 31, 2023, 1.49% at September 30, 2023, and 1.40% at December 31, 2022.
  • Net charge-offs were $4.7 million in the fourth quarter of 2023, a decrease of $8.0 million from $12.7 million in the third 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 $326 thousand, and the average commercial loan size is $744 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 48% and 246% of total bank-level risk-based capital, respectively, compared to 51% and 248%, respectively, at September 30, 2023. On a consolidated basis, construction and land development and commercial real estate loans represent 45% and 228%, 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 December 31, 2023 of 14.6% compared to 14.0% at September 30, 2023, and 14.8% at December 31, 2022. The Total capital ratio was 15.9%, the Common Equity Tier 1 capital ratio was 13.9%, and the Tier 1 leverage ratio was 11.0% at December 31, 2023. The Company is considered “well capitalized” based on applicable U.S. regulatory capital ratio requirements.
  • Cash and cash equivalents at December 31, 2023 totaled $447.2 million.
  • Tangible common equity to tangible assets was 9.31% at December 31, 2023, compared to 8.68% at September 30, 2023, and 9.08% at December 31, 2022. If all held-to-maturity securities were adjusted to fair value at December 31, 2023, the tangible common equity ratio would have been 8.68%.
  • At December 31, 2023, in addition to $447.2 million in cash, the Company had $5.5 billion in available borrowing capacity, including $4.5 billion in available collateralized lines of credit, $0.7 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 December 31, 2023 represented 176% of uninsured and uncollateralized deposits.
  • Under its share repurchase program, the Company is authorized to purchase up to $100 million of its shares of outstanding common stock. Under this program during the fourth quarter of 2023, the Company repurchased 546,200 shares at a weighted average price of $19.80 per share.

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 has also earned specific recognition from the South Florida Business Journal, the Orlando Business Journal, American Banker, and the Guide to Greater Gainesville.

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
          
 4Q'23 3Q'23 2Q'23 1Q'23 4Q'22
Selected balance sheet data:         
Gross loans$10,062,940  $10,011,186  $10,117,919  $10,134,395  $8,144,724 
Total deposits 11,776,935   12,107,834   12,283,267   12,309,701   9,981,595 
Total assets 14,580,249   14,823,007   15,041,932   15,255,408   12,145,762 
          
Performance measures:         
Net income$29,543  $31,414  $31,249  $11,827  $23,927 
Net interest margin 3.36%  3.57%  3.86%  4.31%  4.36%
Pre-tax pre-provision earnings1 42,006   43,383   40,864   46,321   45,999 
Average diluted shares outstanding 85,336   85,666   85,536   80,717   71,374 
Diluted earnings per share (EPS)$0.35  $0.37  $0.37  $0.15  $0.34 
Return on (annualized):         
Average assets (ROA) 0.80%  0.84%  0.84%  0.34%  0.78%
Average tangible assets (ROTA)2 0.99   1.04   1.06   0.52   0.94 
Average tangible common equity (ROTCE)2 11.22   11.90   12.08   5.96   10.36 
Tangible common equity to tangible assets2 9.31   8.68   8.53   8.36   9.08 
Tangible book value per share2$15.08  $14.26  $14.24  $14.25  $14.69 
Efficiency ratio 60.32%  62.60%  67.34%  65.43%  63.39%
          
Adjusted operating measures1:         
Adjusted net income$36,505  $39,737  $49,203  $29,241  $39,926 
Adjusted pre-tax pre-provision earnings 51,904   54,806   64,856   71,081   66,649 
Adjusted diluted EPS 0.43   0.46   0.58   0.36   0.56 
Adjusted ROTA2 1.04%  1.12%  1.41%  0.90%  1.36%
Adjusted ROTCE2 11.80   12.79   16.08   10.34   15.05 
Adjusted efficiency ratio 60.32   60.19   56.44   53.10   51.52 
Net adjusted noninterest expense as a percent of average tangible assets2 2.25   2.34   2.40   2.47   2.42 
          
Other data:         
Market capitalization3$2,415,158  $1,869,891  $1,880,407  $2,005,241  $2,233,761 
Full-time equivalent employees 1,541   1,570   1,670   1,650   1,490 
Number of ATMs 96   97   96   97   100 
Full-service banking offices 77   77   78   83   78 
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 January 26th, 2024, at 10:00 a.m. (Eastern Time) to discuss the fourth quarter 2023 earnings results and business trends. Investors may call in (toll-free) by dialing (800) 715-9871 (Conference ID: 4160956). 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 $14.6 billion in assets and $11.8 billion in deposits as of December 31, 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 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 (including the impact of continued elevated interest rates on macroeconomic conditions, customer and client behavior, as well as potential reductions in benchmark interest rates and the resulting impacts on 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 effects of problems encountered by other financial institutions that adversely affect Seacoast or the banking industry, including bank failures; 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; 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 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; 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; 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 debt ceiling and the federal budget; 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 the resources required to consummate such transactions, and may reduce the anticipated benefit; 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.

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, June 30, 2023 and September 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 Twelve Months Ended
(Amounts in thousands, except ratios and per share data)4Q'233Q'232Q'231Q'234Q'22 4Q'23 4Q'22
Summary of Earnings         
Net income$29,543 $31,414 $31,249 $11,827 $23,927  $104,033  $106,507 
Adjusted net income1 36,505  39,737  49,203  29,241  39,926   154,686   136,146 
Net interest income2 111,035  119,505  127,153  131,351  119,858   489,043   366,660 
Net interest margin2,3 3.36% 3.57% 3.86% 4.31% 4.36%  3.77%  3.69%
Pre-tax pre-provision earnings1 42,006  43,383  40,864  46,321  45,999   172,573   164,817 
Adjusted pre-tax pre-provision earnings1 51,904  54,806  64,856  71,081  66,649   242,646   203,772 
                        
Performance Ratios         
Return on average assets-GAAP basis3 0.80% 0.84% 0.84% 0.34% 0.78%  0.71%  0.96%
Return on average tangible assets-GAAP basis3,4 0.99  1.04  1.06  0.52  0.94   0.91   1.06 
Adjusted return on average tangible assets1,3,4 1.04  1.12  1.41  0.90  1.36   1.12   1.27 
Pre-tax pre-provision return on average tangible assets1,3,4 1.35  1.38  1.33  1.58  1.69   1.41   1.61 
Adjusted pre-tax pre-provision return on average tangible assets1,3,4 1.48  1.55  1.85  2.18  2.28   1.76   1.91 
Net adjusted noninterest expense to average tangible assets1,3,4 2.25  2.34  2.40  2.47  2.42   2.36   2.15 
Return on average shareholders' equity-GAAP basis3 5.69  6.01  6.05  2.53  6.03   5.14   7.51 
Return on average tangible common equity-GAAP basis3,4 11.22  11.90  12.08  5.96  10.36   10.38   10.70 
Adjusted return on average tangible common equity1,3,4 11.80  12.79  16.08  10.34  15.05   12.80   12.86 
Efficiency ratio5 60.32  62.60  67.34  65.43  63.39   64.07   60.01 
Adjusted efficiency ratio1 60.32  60.19  56.44  53.10  51.52   57.35   53.03 
Noninterest income to total revenue (excluding securities gains/losses) 15.14  13.22  14.63  14.55  12.84   14.39   15.50 
Tangible common equity to tangible assets4 9.31  8.68  8.53  8.36  9.08   9.31   9.08 
Average loan-to-deposit ratio 83.38  82.63  83.48  82.43  77.67   82.99   73.50 
End of period loan-to-deposit ratio 85.48  82.71  82.42  82.35  81.63   85.48   81.63 
                        
Per Share Data         
Net income diluted-GAAP basis$0.35 $0.37 $0.37 $0.15 $0.34  $1.23  $1.66 
Net income basic-GAAP basis 0.35  0.37  0.37  0.15  0.34   1.24   1.67 
Adjusted earnings1 0.43  0.46  0.58  0.36  0.56   1.83   2.12 
                        
Book value per share common 24.84  24.06  24.14  24.24  22.45   24.84   22.45 
Tangible book value per share 15.08  14.26  14.24  14.25  14.69   15.08   14.69 
Cash dividends declared 0.18  0.18  0.18  0.17  0.17   0.71   0.64 
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 Twelve Months Ended
(Amounts in thousands, except per share data)4Q'23 3Q'23 2Q'23 1Q'23 4Q'22 4Q'23 4Q'22
              
Interest on securities:             
Taxable$21,383  $21,401  $20,898  $19,244 $18,530  $82,926  $56,611 
Nontaxable 55   97   97   105  130   354   546 
Interest and fees on loans 147,801   149,871   148,265   135,168  105,322   581,105   315,717 
Interest on federal funds sold and other investments 7,616   8,477   5,023   3,474  3,127   24,590   7,620 
Total Interest Income 176,855   179,846   174,283   157,991  127,109   688,975   380,494 
              
Interest on deposits 44,923   38,396   27,183   16,033  3,934   126,535   7,318 
Interest on time certificates 15,764   16,461   14,477   5,552  1,358   52,254   2,642 
Interest on borrowed money 5,349   5,683   5,660   5,254  2,108   21,946   4,372 
Total Interest Expense 66,036   60,540   47,320   26,839  7,400   200,735   14,332 
              
Net Interest Income 110,819   119,306   126,963   131,152  119,709   488,240   366,162 
Provision for credit losses 3,990   2,694   (764)  31,598  14,129   37,518   26,183 
Net Interest Income After Provision for Credit Losses 106,829   116,612   127,727   99,554  105,580   450,722   339,979 
              
Noninterest income:             
Service charges on deposit accounts 4,828   4,648   4,560   4,242  3,996   18,278   13,709 
Interchange income 2,433   1,684   5,066   4,694  4,650   13,877   17,171 
Wealth management income 3,261   3,138   3,318   3,063  2,886   12,780   11,051 
Mortgage banking fees 378   410   576   426  426   1,790   3,478 
Insurance agency income 1,066   1,183   1,160   1,101  805   4,510   805 
SBA gains 921   613   249   322  105   2,105   842 
BOLI income 2,220   2,197   2,068   1,916  1,526   8,401   5,572 
Other 4,668   4,307   4,755   6,574  3,239   20,304   14,559 
  19,775   18,180   21,752   22,338  17,633   82,045   67,187 
Securities (losses) gains, net (2,437)  (387)  (176)  107  18   (2,893)  (1,096)
Total Noninterest Income 17,338   17,793   21,576   22,445  17,651   79,152   66,091 
              
Noninterest expenses:             
Salaries and wages 38,435   46,431   45,155   47,616  45,405   177,637   130,100 
Employee benefits 6,678   7,206   7,472   8,562  5,300   29,918   19,026 
Outsourced data processing costs 8,609   8,714   20,222   14,553  9,918   52,098   27,510 
Telephone / data lines 1,196   1,409   1,518   1,081  1,185   5,204   3,799 
Occupancy 6,316   6,349   7,065   6,938  5,457   26,668   18,539 
Furniture and equipment 2,028   2,052   2,345   2,267  1,944   8,692   6,420 
Marketing 2,995   1,876   2,047   2,238  1,772   9,156   6,286 
Legal and professional fees 3,294   2,679   4,062   7,479  9,174   17,514   20,703 
FDIC assessments 2,813   2,258   2,116   1,443  889   8,630   3,137 
Amortization of intangibles 6,888   7,457   7,654   6,727  4,763   28,726   9,101 
Foreclosed property expense and net loss (gain) on sale 573   274   (57)  195  (411)  985   (1,534)
Provision for credit losses on unfunded commitments          1,239     1,239   1,157 
Other 6,542   7,210   8,266   7,137  6,114   29,155   23,690 
Total Noninterest Expense 86,367   93,915   107,865   107,475  91,510   395,622   267,934 
              
Income Before Income Taxes 37,800   40,490   41,438   14,524  31,721   134,252   138,136 
Income taxes 8,257   9,076   10,189   2,697  7,794   30,219   31,629 
Net Income$29,543  $31,414  $31,249  $11,827 $23,927  $104,033  $106,507 
              
Per share of common stock:             
              
Net income diluted$0.35  $0.37  $0.37  $0.15 $0.34  $1.23  $1.66 
Net income basic 0.35   0.37   0.37   0.15  0.34   1.24   1.67 
Cash dividends declared 0.18   0.18   0.18   0.17  0.17   0.71   0.64 
              
Average diluted shares outstanding 85,336   85,666   85,536   80,717  71,374   84,329   64,264 
Average basic shares outstanding 84,817   85,142   85,022   80,151  70,770   83,800   63,707 
              


CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
 December 31, September 30, June 30, March 31, December 31,
(Amounts in thousands)2023 2023 2023 2023 2022
Assets         
Cash and due from banks$ 167,511  $182,036  $164,193  $180,607  $120,748 
Interest bearing deposits with other banks 279,671   513,946   563,690   610,636   81,192 
Total Cash and Cash Equivalents 447,182   695,982   727,883   791,243   201,940 
          
Time deposits with other banks 5,857   4,357   2,987   3,236   3,236 
          
Debt Securities:         
Available for sale (at fair value) 1,836,020   1,841,845   1,916,231   2,015,967   1,871,742 
Held to maturity (at amortized cost) 680,313   691,404   707,812   737,911   747,408 
Total Debt Securities 2,516,333   2,533,249   2,624,043   2,753,878   2,619,150 
          
Loans held for sale 4,391   2,979   5,967   2,838   3,151 
          
Loans 10,062,940   10,011,186   10,117,919   10,134,395   8,144,724 
Less: Allowance for credit losses (148,931)  (149,661)  (159,715)  (155,640)  (113,895)
Net Loans 9,914,009   9,861,525   9,958,204   9,978,755   8,030,829 
          
Bank premises and equipment, net 113,304   115,749   116,959   116,522   116,892 
Other real estate owned 7,560   7,216   7,526   7,756   2,301 
Goodwill 732,417   731,970   732,910   728,396   480,319 
Other intangible assets, net 95,645   102,397   109,716   117,409   75,451 
Bank owned life insurance 298,974   296,763   293,880   292,545   237,824 
Net deferred tax assets 113,232   131,602   127,941   124,301   94,457 
Other assets 331,345   339,218   333,916   338,529   280,212 
Total Assets$ 14,580,249  $14,823,007  $15,041,932  $15,255,408  $12,145,762 
          
Liabilities and Shareholders' Equity         
Liabilities         
Deposits         
Noninterest demand$ 3,544,981  $3,868,132  $4,139,052  $4,554,509  $4,070,973 
Interest-bearing demand 2,790,210   2,800,152   2,816,656   2,676,320   2,337,590 
Savings 651,454   721,558   824,255   940,702   1,064,392 
Money market 3,314,288   3,143,897   2,859,164   2,893,128   1,985,974 
Other time certificates 889,806   821,406   628,036   598,483   369,389 
Brokered time certificates 122,347   307,963   591,503   371,392   3,798 
Time certificates of more than $250,000 463,849   444,726   424,601   275,167   149,479 
Total Deposits 11,776,935   12,107,834   12,283,267   12,309,701   9,981,595 
          
Securities sold under agreements to repurchase 374,573   276,450   290,156   267,606   172,029 
Federal Home Loan Bank borrowings 50,000   110,000   160,000   385,000   150,000 
Subordinated debt, net 106,302   106,136   105,970   105,804   84,533 
Other liabilities 164,353   174,193   148,507   136,213   149,830 
Total Liabilities 12,472,163   12,774,613   12,987,900   13,204,324   10,537,987 
          
Shareholders' Equity         
Common stock 8,486   8,515   8,509   8,461   7,162 
Additional paid in capital 1,808,883   1,813,068   1,809,431   1,803,898   1,377,802 
Retained earnings 467,305   453,117   437,087   421,271   423,863 
Treasury stock (16,710)  (14,035)  (14,171)  (13,113)  (13,019)
  2,267,964   2,260,665   2,240,856   2,220,517   1,795,808 
Accumulated other comprehensive (loss) income, net (159,878)  (212,271)  (186,824)  (169,433)  (188,033)
Total Shareholders' Equity 2,108,086   2,048,394   2,054,032   2,051,084   1,607,775 
Total Liabilities & Shareholders' Equity$ 14,580,249  $14,823,007  $15,041,932  $15,255,408  $12,145,762 
          
Common shares outstanding 84,861   85,150   85,086   84,609   71,618 


 
CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES          
           
(Amounts in thousands) 4Q'23 3Q'23 2Q'23 1Q'23 4Q'22
Credit Analysis          
Net charge-offs (recoveries) $4,720  $12,748  $705  $3,188  $782 
Net charge-offs (recoveries) to average loans  0.19%  0.50%  0.03%  0.14%  0.04%
Allowance for credit losses $148,931  $149,661  $159,715  $155,640  $113,895 
           
Non-acquired loans at end of period $6,571,454  $6,343,121  $6,264,044  $6,048,453  $5,944,194 
Acquired loans at end of period  3,491,486   3,668,065   3,853,875   4,085,942   2,200,530 
Total Loans $10,062,940  $10,011,186  $10,117,919  $10,134,395  $8,144,724 
           
Total allowance for credit losses to total loans at end of period  1.48%  1.49%  1.58%  1.54%  1.40%
Purchase discount on acquired loans at end of period  4.75   4.86   4.98   5.02   4.25 
           
End of Period          
Nonperforming loans $65,104  $41,508  $48,326  $50,787  $28,843 
Other real estate owned  221   221   530   530   530 
Properties previously used in bank operations included in other real estate owned  7,339   6,995   6,996   7,226   1,771 
Total Nonperforming Assets $72,664  $48,724  $55,852  $58,543  $31,144 
           
Nonperforming Loans to Loans at End of Period  0.65%  0.41%  0.48%  0.50%  0.35%
Nonperforming Assets to Total Assets at End of Period  0.50   0.33   0.37   0.38   0.26 
           
  December 31, September 30, June 30, March 31, December 31,
Loans 2023 2023 2023 2023 2022
Construction and land development $767,622  $793,736  $794,371  $757,835  $587,332 
Commercial real estate - owner occupied  1,670,281   1,675,881   1,669,369   1,652,491   1,478,302 
Commercial real estate - non-owner occupied  3,319,890   3,285,974   3,370,211   3,412,051   2,589,774 
Residential real estate  2,445,692   2,418,903   2,396,352   2,354,394   1,849,503 
Commercial and financial  1,607,888   1,588,152   1,615,534   1,655,884   1,353,226 
Consumer  251,567   248,540   272,082   301,740   286,587 
Total Loans $10,062,940  $10,011,186  $10,117,919  $10,134,395  $8,144,724 
 


AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1(Unaudited)      
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
                  
 4Q'23 3Q'23 4Q'22
 Average   Yield/ Average   Yield/ Average   Yield/
(Amounts in thousands)Balance Interest Rate Balance Interest Rate Balance Interest Rate
                  
Assets                 
Earning assets:                 
Securities:                 
Taxable$ 2,499,047  $ 21,383 3.42% $2,575,002  $21,401 3.32% $2,680,813  $18,530 2.76%
Nontaxable 7,835   68 3.48   15,280   119 3.11   20,246   164 3.24 
Total Securities 2,506,882   21,451 3.42   2,590,282   21,520 3.32   2,701,059   18,694 2.77 
                  
Federal funds sold 465,506   6,426 5.48   547,576   7,415 5.37   155,815   1,410 3.59 
Interest bearing deposits with other banks and other investments 91,230   1,190 5.18   90,039   1,062 4.68   141,179   1,717 4.83 
                  
                  
Total Loans, net 10,033,245   148,004 5.85   10,043,611   150,048 5.93   7,910,729   105,437 5.29 
                  
Total Earning Assets 13,096,863   177,071 5.36   13,271,508   180,045 5.38   10,908,782   127,258 4.63 
                  
Allowance for credit losses (149,110)      (158,440)      (109,509)    
Cash and due from banks 179,908       168,931       137,839     
Premises and equipment 115,556       116,704       115,095     
Intangible assets 832,029       839,787       521,412     
Bank owned life insurance 297,525       295,272       237,062     
Other assets including deferred tax assets 365,263       372,241       329,175     
                  
Total Assets$ 14,738,034      $14,906,003      $12,139,856     
                  
Liabilities and Shareholders' Equity                 
Interest-bearing liabilities:                 
Interest-bearing demand$ 2,819,743  $ 15,658 2.20% $2,804,243  $15,013 2.12% $2,303,324  $1,859 0.32%
Savings 679,720   505 0.29   770,503   465 0.24   1,126,540   203 0.07 
Money market 3,268,829   28,760 3.49   2,972,495   22,918 3.06   1,980,870   1,872 0.37 
Time deposits 1,524,460   15,764 4.1   1,619,572   16,461 4.03   500,441   1,358 1.08 
Securities sold under agreements to repurchase 335,559   2,991 3.54   327,711   2,876 3.48   134,709   544 1.60 
Federal Home Loan Bank borrowings 59,022   442 2.97   111,087   888 3.17   40,712   330 3.22 
Subordinated debt 106,205   1,916 7.16   106,036   1,919 7.18   83,534   1,234 5.86 
                  
Total Interest-Bearing Liabilities 8,793,538   66,036 2.98   8,711,647   60,540 2.76   6,170,130   7,400 0.48 
                  
Noninterest demand 3,739,993       3,987,761       4,273,922     
Other liabilities 145,591       133,846       122,100     
Total Liabilities 12,679,122       12,833,254       10,566,152     
                  
Shareholders' equity 2,058,912       2,072,747       1,573,704     
                  
Total Liabilities & Equity$14,738,034      $14,906,003      $12,139,856     
                  
Cost of deposits    2.00%     1.79%     0.21%
Interest expense as a % of earning assets    2.00%     1.81%     0.27%
Net interest income as a % of earning assets  $111,035 3.36%   $119,505 3.57%   $119,858 4.36%
                  
                  
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 
            
            
 Twelve Months Ended December 31, 2023 Twelve Months Ended December 31, 2022
 Average   Yield/ Average   Yield/
(Amounts in thousands)Balance Interest Rate Balance Interest Rate
            
Assets           
Earning assets:           
Securities:           
Taxable$ 2,611,299  $ 82,926 3.18% $2,568,568  $56,611 2.20%
Nontaxable 13,733   438 3.19   22,188   690 3.11 
Total Securities 2,625,032   83,364 3.18   2,590,756   57,301 2.21 
            
Federal funds sold 368,659   18,871 5.12   433,359   4,103 0.95 
Interest bearing deposits with other banks and other investments 90,692   5,718 6.30   69,604   3,517 5.05 
            
            
Total Loans, net 9,889,070   581,825 5.88   6,838,266   316,073 4.62 
            
Total Earning Assets 12,973,453   689,778 5.32   9,931,985   380,994 3.84 
            
Allowance for credit losses (150,982)      (94,693)    
Cash and due from banks 184,035       305,775     
Premises and equipment 116,516       85,568     
Intangible assets 816,662       360,217     
Bank owned life insurance 290,218       214,468     
Other assets including deferred tax assets 392,872       248,108     
            
Total Assets$ 14,622,774      $11,051,428     
            
Liabilities and Shareholders' Equity           
Interest-bearing liabilities:           
Interest-bearing demand$ 2,686,936  $ 41,438 1.54% $2,220,307  $3,099 0.14%
Savings 851,347   1,796 0.21   989,997   397 0.04 
Money market 2,941,916   83,300 2.83   1,925,176   3,824 0.2 
Time deposits 1,348,152   52,254 3.88   500,471   2,642 0.53 
Securities sold under agreements to repurchase 270,999   8,324 3.07   121,318   986 0.81 
Federal Home Loan Bank borrowings 175,247   6,378 3.64   10,264   330 3.22 
Subordinated debt 104,158   7,245 6.96   74,713   3,056 4.09 
            
Total Interest-Bearing Liabilities 8,378,755   200,735 2.40   5,842,246   14,334 0.25 
            
Noninterest demand 4,087,335       3,667,345     
Other liabilities 131,302       122,982     
Total Liabilities 12,597,392       9,632,573     
            
Shareholders' equity 2,025,382       1,418,855     
            
Total Liabilities & Equity$14,622,774      $11,051,428     
            
Cost of deposits    1.50%     0.11%
Interest expense as a % of earning assets    1.55%     0.14%
Net interest income as a % of earning assets  $489,043 3.77%   $366,660 3.69%
            
            
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)December 31,
2023
 September 30,
2023
 June 30,
2023
 March 31,
2023
 December 31,
2022
Customer Relationship Funding         
Noninterest demand         
Commercial$ 2,752,644 $3,089,488 $3,304,761 $3,622,441 $3,148,778
Retail 561,569  570,727  615,536  673,686  764,274
Public funds 173,893  134,649  152,159  194,977  112,553
Other 56,875  73,268  66,596  63,405  45,368
Total Noninterest Demand 3,544,981  3,868,132  4,139,052  4,554,509  4,070,973
          
Interest-bearing demand         
Commercial 1,576,491  1,618,755  1,555,486  1,233,845  886,894
Retail 956,900  994,224  1,058,993  1,209,664  1,191,192
Brokered       44,474  54,777
Public funds 256,819  187,173  202,177  188,337  204,727
Total Interest-Bearing Demand 2,790,210  2,800,152  2,816,656  2,676,320  2,337,590
          
Total transaction accounts         
Commercial 4,329,135  4,708,243  4,860,247  4,856,286  4,035,672
Retail 1,518,469  1,564,951  1,674,529  1,883,350  1,955,466
Brokered       44,474  54,777
Public funds 430,712  321,822  354,336  383,314  317,280
Other 56,875  73,268  66,596  63,405  45,368
Total Transaction Accounts 6,335,191  6,668,284  6,955,708  7,230,829  6,408,563
          
Savings         
Commercial 58,562  79,731  101,908  108,023  91,943
Retail 592,892  641,827  722,347  832,679  972,449
Total Savings 651,454  721,558  824,255  940,702  1,064,392
          
Money market         
Commercial 1,655,820  1,625,455  1,426,348  1,542,220  932,518
Retail 1,469,142  1,362,390  1,275,721  1,279,712  984,561
Public funds 189,326  156,052  157,095  71,196  68,895
Total Money Market 3,314,288  3,143,897  2,859,164  2,893,128  1,985,974
          
Brokered time certificates 122,347  307,963  591,503  371,392  3,798
Other time certificates 1,353,655  1,266,132  1,052,637  873,650  518,868
  1,476,002  1,574,095  1,644,140  1,245,042  522,666
Total Deposits$ 11,776,935 $12,107,834 $12,283,267 $12,309,701 $9,981,595
          
Customer sweep accounts 374,573  276,450  290,156  267,606  172,029
          
Total customer funding (1)$ 12,029,161 $12,076,321 $11,981,920 $12,205,915 $10,149,826
          
(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 Twelve Months Ended
(Amounts in thousands, except per share data)4Q'233Q'232Q'231Q'234Q'22 4Q'234Q'22
Net Income$29,543 $31,414 $31,249 $11,827 $23,927  $104,033 $106,507 
         
Total noninterest income 17,338  17,793  21,576  22,445  17,651   79,152  66,091 
Securities losses (gains), net 2,437  387  176  (107) (18)  2,893  1,096 
BOLI benefits on death (included in other income)       (2,117)    (2,117)  
Total Adjustments to Noninterest Income 2,437  387  176  (2,224) (18)  776  1,096 
Total Adjusted Noninterest Income 19,775  18,180  21,752  20,221  17,633   79,928  67,187 
         
Total noninterest expense 86,367  93,915  107,865  107,475  91,510   395,622  267,934 
Total merger related charges     (15,648) (17,532) (16,140)  (33,180) (27,925)
Amortization of intangibles (6,888) (7,457) (7,654) (6,727) (4,763)  (28,726) (9,101)
Branch reductions and other expense initiatives   (3,305) (571) (1,291) (176)  (5,167) (1,210)
Total Adjustments to Noninterest Expense (6,888) (10,762) (23,873) (25,550) (21,079)  (67,073) (38,236)
Total Adjusted Noninterest Expense 79,479  83,153  83,992  81,925  70,431   328,549  229,698 
         
Income Taxes 8,257  9,076  10,189  2,697  7,794   30,219  31,629 
Tax effect of adjustments 2,363  2,826  6,095  5,912  5,062   17,196  9,693 
Adjusted Income Taxes 10,620  11,902  16,284  8,609  12,856   47,415  41,322 
Adjusted Net Income$36,505 $39,737 $49,203 $29,241 $39,926  $154,686 $136,146 
         
Earnings per diluted share, as reported$0.35 $0.37 $0.37 $0.15 $0.34  $1.23 $1.66 
Adjusted Earnings per Diluted Share 0.43  0.46  0.58  0.36  0.56   1.83  2.12 
Average diluted shares outstanding 85,336  85,666  85,536  80,717  71,374   84,329  64,264 
         
Adjusted Noninterest Expense$79,479 $83,153 $83,992 $81,925 $70,431  $328,549 $229,698 
Provision for credit losses on unfunded commitments       (1,239)    (1,239) (1,157)
Foreclosed property expense and net loss (gain) on sale (573) (274) 57  (195) 411   (985) 1,534 
Net Adjusted Noninterest Expense$78,906 $82,879 $84,049 $80,491 $70,842  $326,325 $230,075 
         
Revenue$128,157 $137,099 $148,539 $153,597 $137,360  $567,392 $432,253 
Total Adjustments to Revenue 2,437  387  176  (2,224) (18)  776  1,096 
Impact of FTE adjustment 216  199  190  199  149   803  498 
Adjusted Revenue on a fully taxable equivalent basis$130,810 $137,685 $148,905 $151,572 $137,491  $568,971 $433,847 
Adjusted Efficiency Ratio 60.32% 60.19% 56.44% 53.10% 51.52%  57.35% 53.03%
         
Net Interest Income$110,819 $119,306 $126,963 $131,152 $119,709  $488,240 $366,162 
Impact of FTE adjustment 216  199  190  199  149   803  498 
Net Interest Income including FTE adjustment$111,035 $119,505 $127,153 $131,351 $119,858  $489,043 $366,660 
Total noninterest income 17,338  17,793  21,576  22,445  17,651   79,152  66,091 
Total noninterest expense 86,367  93,915  107,865  107,475  91,510   395,622  267,934 
Pre-Tax Pre-Provision Earnings$42,006 $43,383 $40,864 $46,321 $45,999  $172,573 $164,817 
Total Adjustments to Noninterest Income 2,437  387  176  (2,224) (18)  776  1,096 
Total Adjustments to Noninterest Expense (7,461) (11,036) (23,816) (26,984) (20,668)  (69,297) (37,859)
Adjusted Pre-Tax Pre-Provision Earnings$51,904 $54,806 $64,856 $71,081 $66,649  $242,646 $203,772 
         
Average Assets$14,738,034 $14,906,003 $14,887,289 $13,947,976 $12,139,856  $14,622,774 $11,051,428 
Less average goodwill and intangible assets (832,029) (839,787) (842,988) (750,694) (521,412)  (816,662) (360,217)
Average Tangible Assets$13,906,005 $14,066,216 $14,044,301 $13,197,282 $11,618,444  $13,806,112 $10,691,211 
         
         
GAAP TO NON-GAAP RECONCILIATION(Unaudited)   
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES     
 Quarterly Trends Twelve Months Ended
(Amounts in thousands, except per share data)4Q'233Q'232Q'231Q'234Q'22 4Q'234Q'22
Return on Average Assets (ROA) 0.80% 0.84% 0.84% 0.34% 0.78%  0.71% 0.96%
Impact of removing average intangible assets and related amortization 0.19  0.20  0.22  0.18  0.16   0.20  0.10 
Return on Average Tangible Assets (ROTA) 0.99  1.04  1.06  0.52  0.94   0.91  1.06 
Impact of other adjustments for Adjusted Net Income 0.05  0.08  0.35  0.38  0.42   0.21  0.21 
Adjusted Return on Average Tangible Assets 1.04  1.12  1.41  0.90  1.36   1.12  1.27 
         
Pre-Tax Pre-Provision return on Average Tangible Assets 1.35% 1.38% 1.33% 1.58% 1.69%  1.41% 1.61%
Impact of adjustments on Pre-Tax Pre-Provision earnings 0.13  0.17  0.52  0.60  0.59   0.35  0.30 
Adjusted Pre-Tax Pre-Provision Return on Tangible Assets 1.48  1.55  1.85  2.18  2.28   1.76  1.91 
         
Average Shareholders' Equity$2,058,912 $2,072,747 $2,070,529 $1,897,045 $1,573,704  $2,025,382 $1,418,855 
Less average goodwill and intangible assets (832,029) (839,787) (842,988) (750,694) (521,412)  (816,662) (360,217)
Average Tangible Equity$1,226,883 $1,232,960 $1,227,541 $1,146,351 $1,052,292  $1,208,720 $1,058,638 
         
Return on Average Shareholders' Equity 5.69% 6.01% 6.05% 2.53% 6.03%  5.14% 7.51%
Impact of removing average intangible assets and related amortization 5.53  5.89  6.03  3.43  4.33   5.24  3.19 
Return on Average Tangible Common Equity (ROTCE) 11.22  11.90  12.08  5.96  10.36   10.38  10.70 
Impact of other adjustments for Adjusted Net Income 0.58  0.89  4.00  4.38  4.69   2.42  2.16 
Adjusted Return on Average Tangible Common Equity 11.80  12.79  16.08  10.34  15.05   12.80  12.86 
         
Loan interest income1$148,004 $150,048 $148,432 $135,341 $105,437  $581,825 $316,073 
Accretion on acquired loans (11,324) (14,843) (14,580) (15,942) (9,710)  (56,689) (18,389)
Loan interest income excluding accretion on acquired loans$136,680 $135,205 $133,852 $119,399 $95,727  $525,136 $297,684 
         
Yield on loans1