UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to __________________. Commission File No. 0-13660 Seacoast Banking Corporation of Florida (Exact Name of Registrant as Specified in its Charter) ...

Seacoast Banking of Florida (SBCF) Q2 2025 Earnings Call July 25, 2025 10:00 AM ET Company ParticipantsCharles Shaffer - Chairman, President & CEOTracey Dexter - Executive VP & CFODavid Feaster - Director - BankingMichael Young - EVP, Treasurer & Director - IRWoody Lay - Vice PresidentDavid Bishop - Director - ResearchJames Stallings - EVP & Chief Credit OfficerRussell Gunther - Managing DirectorOperatorWelcome to Seacoast Banking Corporation's Second Quarter twenty twenty five Earnings Conference Call. My ...

Financial Data and Key Metrics Changes - Net income increased by 36% from the prior quarter to $42.7 million, or $0.50 per share, with adjusted net income rising 39% sequentially to $44.5 million, or $0.52 per share [4][7] - Return on assets improved to 1.08%, and return on tangible common equity reached 12.8% [7] - Efficiency ratio, excluding merger-related charges, improved to 55% [7][15] Business Line Data and Key Metrics Changes - Annualized loan growth reached 6.4%, with loan production of $854 million in the second quarter [4][16] - Net interest income increased by 7% to $126.9 million, with net interest margin expanding by 10 basis points to 3.58% [8][11] - Noninterest income, excluding securities activity, was $24.5 million, a 10% increase from the previous year [13] Market Data and Key Metrics Changes - Total deposits decreased by $77 million, reflecting seasonal slowness and a strategic focus on exiting high-rate deposit relationships [21] - Customer transaction accounts represented 47% of total deposits, indicating a strong relationship-focused approach [22] Company Strategy and Development Direction - The company is focused on integrating recent acquisitions, including Heartland Bancshares and Villages Bank Corporation, to enhance profitability [5][10] - A disciplined approach to recruiting top talent from larger institutions is driving loan production and customer relationship deepening [4][5] - The company aims to maintain a strong capital position and optimize earnings through strategic acquisitions and organic growth [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the economic conditions across their markets, with strong demand for credit and limited impact from tariffs [32][33] - The competitive landscape is becoming increasingly competitive, particularly in commercial real estate, but the company remains optimistic about growth [34][35] - Management anticipates continued mid to high single-digit loan growth into 2026 [33][84] Other Important Information - The allowance for credit losses totaled $142.2 million, or 1.34% of total loans, with no change in coverage compared to the prior quarter [18] - Nonperforming loans declined to 0.61% of total loans, reflecting strong asset quality [19] Q&A Session Summary Question: Growth trends and competitive landscape in Florida - Management highlighted that growth is driven by recruiting talent and strong economic conditions, with a confident outlook for continued growth [30][33] Question: Funding costs and core deposit growth opportunities - Management discussed proactive management of deposit costs and the focus on growing core operating accounts to improve funding costs [36][41] Question: Loan pricing and spreads in commercial real estate - Management noted increased competition and some spread compression in high-quality transactions, but credit quality remains stable [70][72] Question: Future charge-off expectations - Management expects charge-offs to stabilize around mid-cycle levels of 20 to 25 basis points, with current credit quality remaining strong [75] Question: Balance sheet optimization with recent acquisitions - Management emphasized the importance of managing interest rate risk and optimizing earnings through the integration of new acquisitions [45][46]

EARNINGS PRESENTATION SECOND QUARTER 2025 2025 Cautionary Notice Regarding Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning, and protections, of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements about future financial and operating results, cost savings, enhanced revenues, economic and seasonal conditions in the Company's markets, and improve ...

Seacoast Banking (SBCF) reported $151.39 million in revenue for the quarter ended June 2025, representing a year-over-year increase of 19.6%. EPS of $0.52 for the same period compares to $0.36 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $145.15 million, representing a surprise of +4.3%. The company delivered an EPS surprise of +23.81%, with the consensus EPS estimate being $0.42.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings - ...

SEACOAST REPORTS SECOND QUARTER 2025 RESULTS Net Interest Margin Expands 10 Basis Points to 3.58% and Net Interest Income Grows 7% Annualized Loan Growth of 6% with Continuing Strong Pipeline Gains in Return on Average Assets, Return on Tangible Common Equity and Efficiency Ratio STUART, Fla., July 24, 2025 /BUSINESS WIRE/ -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the second quarter of 2025 of $42.7 million, or $0.50 per diluted shar ...

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]