Summary of Seacoast Banking Corporation's Conference Call on Acquisition of Villages Bancorporation Inc. Company and Industry - **Company**: Seacoast Banking Corporation (SBCF) - **Acquisition Target**: Villages Bancorporation Inc. and its subsidiary Citizens First Bank - **Industry**: Banking and Financial Services Core Points and Arguments 1. **Acquisition Announcement**: Seacoast Banking Corporation announced the acquisition of Villages Bancorporation Inc. and Citizens First Bank, marking a significant step in expanding its footprint in North Central Florida [6][10][11]. 2. **Cultural Alignment**: The merger is expected to enhance the relationship-based banking model, benefiting stakeholders in The Villages community [6][9]. 3. **Market Growth**: The Villages community has been the fastest growing MSA in the nation over the past five years, with plans for further expansion [6][11]. 4. **Financial Resilience**: Seacoast has maintained a strong balance sheet through various economic challenges, including a pandemic and liquidity crisis, positioning itself to utilize excess capital effectively [7][9]. 5. **Transaction Details**: The acquisition is valued at approximately $710.8 million, translating to 1.61 times VBI's tangible book value and 6.7 times projected 2026 earnings per share [14][15]. 6. **Earnings Accretion**: The merger is expected to result in a 24% earnings accretion once cost savings are fully realized, with a projected internal rate of return of 28% [16][19]. 7. **Loan and Deposit Ratios**: Villages Bank Corporation has a low loan-to-deposit ratio of 38%, which is expected to limit credit risk and provide opportunities for repositioning bond portfolios [12][19]. 8. **Future Growth Opportunities**: The removal of previous lending restrictions will allow for increased loan growth, particularly in commercial and consumer lending [30][32]. 9. **Strategic Value**: The acquisition is seen as a low-risk deployment of excess capital, enhancing Seacoast's return on equity and providing significant capacity for future growth [19][20]. 10. **Integration Focus**: A key priority will be the successful integration of the two organizations, with a planned system conversion in mid-2026 [17][85]. Additional Important Content 1. **Community Engagement**: The partnership with the Villages Development Corporation is expected to enhance customer service and community engagement over the next 15-20 years [29]. 2. **Revenue Synergies**: There are anticipated revenue synergies from expanding product offerings, particularly in trust and investment management services [63][64]. 3. **Market Position**: Seacoast holds the number one deposit market share in the high-growth Port St. Lucie MSA, which complements the acquisition of Villages Bank Corporation [8][9]. 4. **Future Aspirations**: Seacoast aims to grow into a $20 billion to $25 billion bank, leveraging the scale and capabilities gained from this acquisition [88][90]. 5. **Capital Management**: The acquisition is viewed as a prudent use of excess capital, with plans to allow capital to build back up through improved earnings [94]. This summary encapsulates the key points discussed during the conference call regarding the acquisition of Villages Bancorporation Inc. by Seacoast Banking Corporation, highlighting the strategic, financial, and operational implications of the transaction.

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 ...

Financial Performance - Net income for the first quarter of 2025 was $31.5 million, or $0.37 per diluted share, representing a decrease of 8% from the previous quarter but an increase of 21% year-over-year[97]. - Net income for Q1 2025 was $31.464 million, down from $34.085 million in Q4 2024 but up from $26.006 million in Q1 2024[127]. - The Company reported net income of $31.464 million for the three months ended March 31, 2025, compared to $26.006 million for the same period in 2024, reflecting an increase of approximately 21.2%[189]. - Noninterest income totaled $22.2 million for Q1 2025, an increase of $5.1 million, or 30%, from Q4 2024 and an increase of $1.7 million, or 8%, from Q1 2024[111]. - Total noninterest income for Q1 2025 was $22.180 million, compared to $17.068 million in Q4 2024 and $20.497 million in Q1 2024[127]. Deposits and Loans - Total deposits grew by $332.4 million, or 11.0% annualized, in the first quarter of 2025[95]. - Average loans increased by $169.0 million, or 2%, compared to the fourth quarter of 2024, and by $348.8 million, or 3%, year-over-year[101]. - Noninterest bearing deposits grew by $140.1 million, or 17.0% annualized, in the first quarter of 2025[100]. - Average transaction deposits increased by $0.9 million from Q4 2024 and by $247.6 million, or 4%, from Q1 2024, with 87% of average deposit balances in savings, money market, and demand deposits[105]. - Total deposits increased by $332.4 million, or 11% annualized, to $12.6 billion at March 31, 2025 compared to December 31, 2024[175]. Interest Income and Margin - Net interest income increased to $118.5 million, up $2.7 million, or 2%, from the previous quarter, and up $13.4 million, or 13%, year-over-year[98]. - Net interest margin rose to 3.48%, an increase of nine basis points from the prior quarter[99]. - The cost of deposits declined by 15 basis points to 1.93% in the first quarter of 2025[100]. - The average rate on customer sweep repurchase accounts was 2.73% in Q1 2025, down from 3.00% in Q4 2024 and 3.71% in Q1 2024[106]. Capital and Equity - The Tier 1 capital ratio stood at 14.7%, indicating a strong capital position[100]. - Tangible book value per share increased by 10% year-over-year to $16.71[100]. - The Company's equity capital increased by $46.5 million, or 2%, to $2.2 billion as of March 31, 2025, compared to December 31, 2024[187]. - The ratio of shareholders' equity to total assets was 14.17% at March 31, 2025, down from 14.39% at December 31, 2024[188]. - The total risk-based capital ratio was 16.15% for the Company as of March 31, 2025, well above the regulatory minimum of 10.00%[191]. Expenses - Noninterest expense for Q1 2025 totaled $90.6 million, an increase of $5.0 million, or 6%, from Q4 2024 and a slight increase from Q1 2024[117]. - Employee benefits increased to $8.9 million in Q1 2025, up $2.3 million or 35% from Q4 2024, and up $1.0 million or 12% from Q1 2024[118]. - Total occupancy and furniture and equipment expenses were $9.5 million in Q1 2025, slightly up from $9.2 million in Q4 2024 and down from $10.0 million in Q1 2024[120]. Asset Management - Total assets reached $15.4 billion in Q1 2025, compared to $15.2 billion in Q4 2024 and $14.7 billion in Q1 2024[110]. - Cash and cash equivalents totaled $500.6 million at March 31, 2025, compared to $476.6 million at December 31, 2024[169]. - The Company holds $2.9 billion, or 88% of its total portfolio, in U.S. Treasury securities and obligations of U.S. government agencies[134]. - The Company has $265.5 million invested in floating rate CLOs, all in AAA/AA tranches with a weighted-average credit support of 32%[136]. Loan Portfolio - As of March 31, 2025, the Company reported a loan portfolio of $10.4 billion, reflecting an increase of $143.1 million, or 5.6% annualized, from December 31, 2024[140]. - Residential real estate loans increased by $36.2 million to $2.7 billion during the three months ended March 31, 2025[147]. - Commercial real estate non-owner occupied loans totaled $3.5 billion at March 31, 2025, with the largest segment being retail properties at approximately $1.2 billion[146]. - The commercial/commercial real estate loan pipeline was $884.9 million as of March 31, 2025, an increase of $279.5 million, or 46%, from December 31, 2024[151]. Credit Quality - Provision for credit losses rose to $9.3 million in Q1 2025, compared to $3.7 million in Q4 2024 and $1.4 million in Q1 2024, reflecting higher loan growth[123]. - Nonperforming assets (NPAs) decreased by $20.7 million, or 21%, to $78.2 million as of March 31, 2025, with NPAs to total assets decreasing to 0.50% from 0.65%[159]. - The ratio of allowance for credit losses to total loans was 1.34% at March 31, 2025, unchanged from December 31, 2024[166]. - Nonaccrual loans decreased by $21.4 million, or 23%, to $71.0 million at March 31, 2025[160]. Strategic Initiatives - The Company announced a proposed acquisition of Heartland Bancshares, Inc., expected to close in Q3 2025, expanding its presence in Central Florida[92]. - The company added 10 revenue-producing bankers during Q1 2025, reflecting successful recruitment efforts[117]. - The Company has maintained a quarterly dividend of $0.18 per share since the second quarter of 2021, subject to the discretion of the Board of Directors[193]. Economic Outlook - The projected impact of a +3.00% change in interest rates is a decrease of 17.5% in projected baseline net interest income over the next 12 months[199]. - The economic value of equity is projected to decrease by 27.2% with a +3.00% change in interest rates[207].

Financial Data and Key Metrics Changes - Seacoast reported net income of $31.5 million or $0.37 per share in Q1 2025, with pre-tax pre-provision income increasing by $2.7 million to $50.6 million [12][13] - The net interest margin increased by 9 basis points to 3.48%, while the cost of deposits declined by 15 basis points to 1.93% [7][13] - Adjusted pre-tax pre-provision earnings grew by 22% compared to the same quarter one year ago, and tangible book value per share increased by 10% year-over-year [8][14] Business Line Data and Key Metrics Changes - Loan production showed strong growth with balances increasing nearly 6% on an annualized basis, and the pipeline expanded by over 40% from the prior quarter [12][23] - Non-interest income, excluding securities activity, was $22 million, an 8% increase from Q1 2024, with wealth management revenue up 20% and insurance agency income up 25% year-over-year [18] - Non-interest expense for Q1 was $90.6 million, including $1.1 million in merger-related expenses, reflecting the expansion of the commercial team and new branch locations [21] Market Data and Key Metrics Changes - Total deposits increased to $12.6 billion, growing at an 11% annualized rate, with non-interest-bearing accounts growing at 17% annualized [30] - The company expanded its branch footprint with two new locations in Fort Lauderdale and Tampa, which are among the fastest-growing markets in Florida [15] Company Strategy and Development Direction - The company is focused on disciplined growth and profitability, leveraging recent investments in talent to drive solid growth [9][33] - Seacoast is preparing for the acquisition of Heartland Bancshares, expected to close in Q3 2025, which is seen as a strategic move to enhance its market position [10][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged emerging risks in the macroeconomic environment but expressed confidence in the company's strong balance sheet and ability to navigate volatility [5][6] - The outlook for loan growth remains positive, with expectations of mid to high single-digit growth for the full year 2025, contingent on economic stability [50][81] Other Important Information - The allowance for credit losses totaled $140.3 million, representing 1.34% of total loans, remaining flat from the prior quarter [26] - The company continues to monitor the potential impact of economic and fiscal policy decisions on borrowers, maintaining a conservative credit culture [24][110] Q&A Session Summary Question: Clarity on the securities trade related to the Heartland deal - Management confirmed that the securities trade was a strategic move to pre-purchase securities they intend to retain post-acquisition [39] Question: Increase in core loan yields and NIM expectations - Management explained that the increase in core loan yields was due to a mix of fixed and adjustable loans, and they expect continued NIM expansion through proactive deposit cost management [46][60] Question: Impact of tariffs on loan growth - Management indicated that while tariffs present uncertainty, they have not yet seen a significant impact on the loan pipeline, which remains strong [78][81] Question: Credit quality and sectors of concern - Management noted that they are closely monitoring C&I businesses for potential tariff impacts but have not observed significant issues so far [105][110] Question: Charge-offs and economic forecast - Management stated that net charge-offs are expected to normalize around 25 basis points, with the allowance for credit losses reflecting recent economic volatility [115][117] Question: Residential market conditions in Florida - Management reported no significant weakness in the residential market, noting that while values may have peaked, the market remains healthy [120][122]

EARNINGS PRESENTATION FIRST QUARTER 2025 2025 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, 2024 and in other periodic reports that the Company files with the SEC. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, includ ...

Financial Data and Key Metrics Changes - Seacoast reported net income of $31.5 million or $0.37 per share in Q1 2025, with pretax pre-provision income increasing by $2.7 million to $50.6 million [9] - The net interest margin increased by nine basis points to 3.48%, while the cost of deposits declined by 15 basis points to 1.93% [5][10] - Adjusted pre-tax pre-provision earnings grew by 22% compared to the same quarter one year ago, and tangible book value per share increased by 10% year over year [5][10] Business Line Data and Key Metrics Changes - Loan production showed strong growth at an annualized rate of 6%, with total loans outstanding increasing at a rate of 5.6% [5][15] - Noninterest income, excluding securities activity, was $22 million, reflecting an 8% increase from Q1 2024, driven by a 20% increase in wealth management revenue and a 25% increase in insurance agency income year over year [13][14] - Noninterest expense for the first quarter was $90.6 million, including $1.1 million in merger-related expenses [15] Market Data and Key Metrics Changes - Total deposits increased to $12.6 billion, growing at an annualized rate of 11%, with noninterest-bearing accounts growing at 17% annualized [20] - The average yield on securities increased to 3.88%, benefiting from recent purchases at higher yields [19] Company Strategy and Development Direction - The company is focused on disciplined growth and has invested in talent to drive new relationships, with 10 new revenue-producing bankers onboarded during the quarter [6][11] - Seacoast is on track to close the acquisition of Heartland Bancshares in Q3 2025, which is expected to enhance its market position [8][11] - The company maintains a conservative approach to credit and is closely monitoring the potential impacts of economic and fiscal policy decisions on borrowers [18][84] Management's Comments on Operating Environment and Future Outlook - Management acknowledged emerging risks in the macroeconomic environment but emphasized the strength of the company's balance sheet and its position to navigate turbulent times [4][6] - The company expects mid to high single-digit loan growth for the remainder of 2025, contingent on market stability [36][61] - Management remains optimistic about the growth outlook, citing strong customer commitment to projects despite economic uncertainties [60][61] Other Important Information - The allowance for credit losses totaled $140.3 million, representing 1.34% of total loans, remaining flat from the prior quarter [18] - The company has a strong capital position, with a Tier one capital ratio of 14.7% and tangible common equity to tangible assets ratio of 9.6% [11][21] Q&A Session Summary Question: Clarification on securities trade related to Heartland deal - Management confirmed that the securities trade was a strategic move to pre-purchase securities they intend to retain post-transaction [29] Question: Thoughts on core loan yields and NIM - Management explained that the increase in core loan yields was due to a mix of fixed and adjustable loans, and they expect continued NIM expansion [32][34] Question: Loan growth outlook and capital deployment strategy - Management expressed confidence in achieving high single-digit loan growth and indicated readiness for future M&A opportunities while remaining disciplined [35][50] Question: Credit quality and sector monitoring - Management noted that they are closely monitoring C&I businesses for potential tariff impacts but have not seen significant issues yet [81][82] Question: Impact of residential market conditions in Florida - Management reported no observed weakness in the residential market, indicating stability despite rising insurance costs [92][94]

Financial Data and Key Metrics Changes - Seacoast reported net income of $31.5 million or $0.37 per share in Q1 2025, with pretax pre-provision income increasing by $2.7 million to $50.6 million [9] - The net interest margin increased by nine basis points to 3.48%, while the cost of deposits declined by 15 basis points to 1.93% [5][10] - Adjusted pre-tax pre-provision earnings grew by 22% compared to the same quarter one year ago, and tangible book value per share increased by 10% year over year [5][10] Business Line Data and Key Metrics Changes - Loan production showed strong growth at an annualized rate of 6%, with total loans outstanding increasing at an annualized rate of 5.6% [5][15] - Noninterest income, excluding securities activity, was $22 million, reflecting an 8% increase from Q1 2024, driven by a 20% increase in wealth management revenue and a 25% increase in insurance agency income year over year [13] - Noninterest expense for the first quarter was $90.6 million, including $1.1 million in merger-related expenses [15] Market Data and Key Metrics Changes - Total deposits increased to $12.6 billion, growing at an 11% annualized rate, with noninterest-bearing accounts growing at 17% annualized [20] - The average yield on securities increased to 3.88%, benefiting from new purchases [19] Company Strategy and Development Direction - The company is focused on disciplined growth and has invested in talent to drive new relationships, with 10 new revenue-producing bankers onboarded during the quarter [6][11] - Seacoast is on track to close the acquisition of Heartland Bancshares in Q3 2025, which is expected to enhance its market position [8][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged emerging risks in the macroeconomic environment but emphasized the strength of the company's balance sheet and its position to navigate volatility [4] - The company expects mid to high single-digit loan growth for the remainder of 2025, contingent on economic stability [36][60] Other Important Information - The allowance for credit losses totaled $140.3 million, representing 1.34% of total loans, remaining flat from the prior quarter [18] - The company continues to monitor the potential impact of economic and fiscal policy decisions on borrowers [18][83] Q&A Session Summary Question: Clarification on securities trade related to Heartland deal - Management confirmed that the securities trade was a strategic move to pre-purchase securities they intend to retain post-transaction [29] Question: Thoughts on core loan yields and NIM - Management explained that the increase in core loan yields was due to a mix of fixed and adjustable loans, and they expect continued NIM expansion [32][34] Question: Loan growth outlook and capital deployment strategy - Management expressed confidence in achieving high single-digit loan growth and indicated readiness for future M&A opportunities while remaining disciplined [36][49] Question: Credit quality and sectors of concern - Management noted that they are closely monitoring C&I businesses for potential tariff impacts but have not seen significant issues yet [81][82] Question: Impact of residential market conditions in Florida - Management reported no significant weakness in the residential market, although they noted that values have likely peaked [92]

Core Insights - Seacoast Banking (SBCF) reported revenue of $140.7 million for Q1 2025, reflecting a 12% increase year-over-year, and EPS of $0.38, up from $0.31 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $136.9 million by 2.77%, while the EPS fell short of the consensus estimate of $0.40 by 5% [1] Financial Performance Metrics - Net Interest Margin was reported at 3.5%, surpassing the average estimate of 3.4% from three analysts [4] - Efficiency Ratio stood at 60.3%, better than the average estimate of 63.1% based on three analysts [4] - Total Net Charge-offs to Average Loans was 0.3%, compared to the estimated 0.2% by two analysts [4] - Total nonperforming loans amounted to $71.02 million, significantly lower than the average estimate of $99.10 million [4] - Total nonperforming assets were reported at $78.19 million, compared to the average estimate of $105.73 million [4] - Average Balance of Total Earning Assets was $13.83 billion, slightly above the estimated $13.79 billion [4] - Total noninterest income was $22.18 million, slightly below the average estimate of $22.45 million [4] - Net interest income (FTE) was $118.86 million, exceeding the average estimate of $115.96 million [4] - Net interest income was reported at $118.52 million, compared to the average estimate of $115.64 million [4] Stock Performance - Shares of Seacoast Banking have returned -9.6% over the past month, underperforming the Zacks S&P 500 composite's -5.1% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

分组1 - Seacoast Banking (SBCF) reported quarterly earnings of $0.38 per share, missing the Zacks Consensus Estimate of $0.40 per share, but showing an increase from $0.31 per share a year ago, resulting in an earnings surprise of -5% [1] - The company posted revenues of $140.7 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.77%, compared to year-ago revenues of $125.58 million [2] - Seacoast Banking shares have declined approximately 14% since the beginning of the year, while the S&P 500 has decreased by 8.6% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.42 on revenues of $140.8 million, and for the current fiscal year, it is $1.75 on revenues of $573.25 million [7] - The Zacks Industry Rank for Banks - Southeast is currently in the top 25% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Net income for Q1 2025 was $31.5 million, or $0.37 per diluted share, compared to $34.1 million, or $0.40 per diluted share in Q4 2024, and $26.0 million, or $0.31 per diluted share in Q1 2024[2][7] - Adjusted net income for Q1 2025 was $32.1 million, or $0.38 per diluted share, compared to $40.6 million, or $0.48 per diluted share in Q4 2024, and $31.1 million, or $0.37 per diluted share in Q1 2024[3][7] - The Company reported net income of $31.5 million for Q1 2025, with diluted earnings per share (EPS) of $0.37[14] - Seacoast reported a net income of $31,464,000 for Q1 2025, a decrease from $34,085,000 in Q4 2024[25] - Net income for Q1 2025 was $31,464,000, down from $34,085,000 in Q4 2024, a decrease of 4.8%[27] - Adjusted Net Income for Q1'25 was $32,102,000, down from $40,556,000 in Q4'24, a decline of 20.9%[34] - Earnings per diluted share for Q1'25 was $0.37, compared to $0.40 in Q4'24, reflecting a decrease of 7.5%[34] Revenue and Income Sources - Net revenues were $140.7 million in Q1 2025, an increase of $7.8 million, or 6%, compared to the prior quarter, and an increase of $15.1 million, or 12%, compared to the prior year quarter[7] - Noninterest income totaled $22.2 million in Q1 2025, an increase of $5.1 million, or 30%, compared to the prior quarter[9] - Total interest income for Q1 2025 was $184,255,000, a slight decrease from $185,930,000 in Q4 2024[27] - Net interest income increased to $118,857,000 in Q1 2025 from $116,115,000 in Q4 2024, reflecting a net interest margin of 3.48%[25] - Noninterest income increased to $22,180,000 in Q1 2025, up from $17,068,000 in Q4 2024, representing a growth of 29.1%[27] Asset and Equity Management - Total assets as of March 31, 2025, were $15.7 billion, with total shareholders' equity of $2.2 billion[8] - Total assets reached $15,732,485,000 as of March 31, 2025, an increase from $15,176,308,000 at the end of 2024, marking a growth of 3.7%[28] - Total shareholders' equity increased to $2,229,740,000 as of March 31, 2025, compared to $2,183,243,000 at the end of 2024, a growth of 2.1%[28] Loan and Deposit Growth - Total loans increased by $143.1 million, or 5.6% annualized, totaling $10.4 billion as of March 31, 2025[10] - Total deposits rose by $332.4 million, or 11.0% annualized, reaching $12.6 billion as of March 31, 2025[10] - Total loans reached $10,443,021 thousand in Q1'25, up from $10,299,950 thousand in Q4'24, marking a growth of 1.4%[29] - Total deposits rose to $12,574,796,000 in Q1 2025, compared to $12,242,427,000 in Q4 2024, indicating an increase of 2.7%[28] Credit Quality and Loss Provisions - The provision for credit losses was $9.3 million in Q1 2025, compared to $3.7 million in Q4 2024 and $1.4 million in Q1 2024[7] - The provision for credit losses increased to $9,250,000 in Q1 2025, compared to $3,699,000 in Q4 2024, reflecting a significant rise of 150.5%[27] - Nonperforming loans decreased to $71.0 million, or 0.68% of total loans, as of March 31, 2025, down from $92.4 million at December 31, 2024[13] - Nonperforming loans decreased to $71,018 thousand in Q1'25 from $92,446 thousand in Q4'24, a decline of 23.2%[29] - The allowance for credit losses stood at $140,267 thousand at the end of Q1'25, slightly up from $138,055 thousand in Q4'24[29] Operational Efficiency - The efficiency ratio was 60.28% in Q1 2025, compared to 56.26% in Q4 2024 and 66.78% in the prior year quarter[9] - The efficiency ratio was reported at 60.28% for Q1 2025, compared to 56.26% in Q4 2024[14] - Adjusted Efficiency Ratio for Q1'25 was 59.53%, compared to 56.07% in Q4'24, indicating a decline in efficiency[34] Future Outlook and Mergers - The Company announced the proposed acquisition of Heartland Bancshares, Inc., expected to close in Q3 2025, which will add four branches in Central Florida[4][8] - Seacoast is in the process of merging with Heartland Bancshares, Inc. and Heartland National Bank, which may impact future financial performance[17] - The company emphasizes the importance of reading the proxy statement/prospectus related to the merger for critical information[17]