STUART, Fla.--(BUSINESS WIRE)--Seacoast Banking Corporation of Florida (NASDAQ: SBCF), a bank holding company whose operating entity is Seacoast Bank, today announced it will release third quarter 2025 results on October 27th, after the market closes. Upon release, investors may access a copy of Seacoast's earnings results at the company's website www.SeacoastBanking.com on the home page by selecting "Press Releases†under the heading "News/Events.†Seacoast will host a conference call October. ...

STUART, Fla.--(BUSINESS WIRE)--Seacoast Banking Corporation of Florida ("Seacoast†or the "Company†) (NASDAQ: SBCF), the holding company for Seacoast National Bank, announced today the completion of its acquisition of Villages Bancorporation, Inc. ("VBI†), parent company of Citizens First Bank, effective October 1, 2025. The merger of Citizens First Bank with and into Seacoast National Bank was also effective on the same date, with Seacoast National Bank being the surviving financial institutio. ...

Core Viewpoint - Seacoast Banking Corporation of Florida has received all necessary regulatory approvals for its acquisition of Villages Bancorporation, Inc., with the transaction expected to close around October 1, 2025, pending shareholder approval [1][2]. Company Overview - Seacoast Banking Corporation of Florida is one of the largest community banks in Florida, with approximately $15.9 billion in assets and $12.5 billion in deposits as of June 30, 2025 [3]. Transaction Details - The acquisition involves the merger of Citizens First Bank into Seacoast Bank, and all required regulatory approvals have been obtained [1][2]. - The transaction is subject to customary closing conditions, including the approval of Villages Bancorporation's shareholders [2]. Financial Performance - In the second quarter of 2025, Seacoast reported a net income of $42.7 million, or $0.50 per diluted share, an increase from $31.5 million, or $0.37 per diluted share, in the first quarter of 2025 [11].

Part I: Financial Information [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The company presents its unaudited consolidated financial statements for the periods ended June 30, 2025 and 2024 Q2 2025 vs Q2 2024 Key Financial Results | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total Interest Income** | $193.3M | $179.8M | | **Net Interest Income** | $126.9M | $104.4M | | **Provision for credit losses** | $4.4M | $4.9M | | **Net Income** | $42.7M | $30.2M | | **Diluted EPS** | $0.50 | $0.36 | Consolidated Balance Sheet Highlights (June 30, 2025 vs Dec 31, 2024) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | $15.94B | $15.18B | | **Loans, net** | $10.47B | $10.16B | | **Total Deposits** | $12.50B | $12.24B | | **Total Liabilities** | $13.67B | $12.99B | | **Total Shareholders' Equity** | $2.27B | $2.18B | - For the six months ended June 30, 2025, net cash from operating activities was **$103.3 million**, while investing activities used **$894.3 million** and financing activities provided **$646.8 million**[13](index=13&type=chunk)[14](index=14&type=chunk) [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section details the accounting policies and financial data for key areas like securities, loans, and acquisitions - The financial statements are prepared per **U.S. GAAP**, with management estimates crucial for the allowance for credit losses, acquisition accounting, and fair value measurements[17](index=17&type=chunk)[19](index=19&type=chunk) Debt Securities Portfolio (Amortized Cost) as of June 30, 2025 | Security Type | Available-for-Sale (AFS) (USD) | Held-to-Maturity (HTM) (USD) | | :--- | :--- | :--- | | U.S. Gov't & Agency | $25.2M | - | | Gov't Sponsored MBS/CMO | $2.61B | $613.3M | | Private MBS/CMO | $113.4M | - | | CLOs | $258.0M | - | | Other | $14.5M | - | | **Total** | **$3.02B** | **$613.3M** | Loan Portfolio Composition as of June 30, 2025 | Loan Segment | Total Balance (USD) | | :--- | :--- | | Construction and land development | $603.1M | | CRE - owner occupied | $1.78B | | CRE - non-owner occupied | $3.62B | | Residential real estate | $2.68B | | Commercial and financial | $1.74B | | Consumer | $183.1M | | **Total Loans** | **$10.61B** | - The allowance for credit losses (ACL) was **$142.2 million**, or **1.34% of total loans**, with a Q2 2025 provision of **$4.4 million**[53](index=53&type=chunk)[56](index=56&type=chunk) - The company completed its acquisition of Heartland Bancshares, Inc. and announced a proposed acquisition of Villages Bancorporation, Inc[85](index=85&type=chunk)[87](index=87&type=chunk) [Management's Discussion and Analysis (MD&A)](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial condition and operational results, highlighting growth, acquisitions, and margin expansion [Results of Operations](index=34&type=section&id=MD%26A%20-%20Results%20of%20Operations) Q2 2025 net income rose 41% YoY, driven by higher net interest income and an expanded net interest margin Q2 2025 Performance Highlights | Metric | Q2 2025 | | :--- | :--- | | Net Income | $42.7M | | Diluted EPS | $0.50 | | Net Interest Income | $126.9M | | Net Interest Margin | 3.58% | | Return on Average Assets | 1.08% | | Efficiency Ratio | 56.95% | - **Net interest margin expanded by 10 basis points** from the prior quarter, driven by lower deposit costs[110](index=110&type=chunk) - Noninterest expense in Q2 2025 included **$2.4 million in merger-related charges** from recent and proposed acquisitions[136](index=136&type=chunk) [Financial Condition](index=46&type=section&id=MD%26A%20-%20Financial%20Condition) Total assets grew to $15.9 billion, driven by loan and securities portfolio growth, with improved credit quality - Total assets increased by **$768.6 million (5%)** from December 31, 2024, reaching **$15.9 billion**[144](index=144&type=chunk) - The loan portfolio grew by **$308.9 million (3.0%)** since year-end 2024, with strong commercial and CRE origination[152](index=152&type=chunk)[165](index=165&type=chunk) - Credit quality improved significantly, with **Nonperforming Assets (NPAs) declining to 0.44%** of total assets[172](index=172&type=chunk) [Liquidity and Capital Resources](index=51&type=section&id=MD%26A%20-%20Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position and capital ratios that significantly exceed regulatory requirements - Total available liquidity sources amounted to **$5.9 billion in borrowing capacity** plus **$332.4 million in cash**[183](index=183&type=chunk) Regulatory Capital Ratios (Consolidated) as of June 30, 2025 | Ratio | Seacoast (Consolidated) | Minimum to be Well Capitalized | | :--- | :--- | :--- | | Total Risk-Based Capital | 16.09% | 10.00% | | Tier 1 Capital | 14.65% | 8.00% | | CET1 Ratio | 14.02% | 6.50% | | Leverage Ratio | 11.09% | 5.00% | - Shareholders' equity increased by **$88.3 million (4%)** since year-end 2024 to **$2.3 billion**[198](index=198&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=54&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages interest rate risk and is positioned to be asset-sensitive in a falling rate environment Projected Change in Net Interest Income (Next 12 Months) | Change in Interest Rates | % Change in Projected NII | | :--- | :--- | | +3.00% | (11.0)% | | +1.00% | (2.5)% | | -1.00% | 2.0% | | -3.00% | 7.5% | Projected Change in Economic Value of Equity (EVE) | Change in Interest Rates | % Change in EVE | | :--- | :--- | | +3.00% | (25.0)% | | +1.00% | (7.5)% | | -1.00% | 7.0% | | -3.00% | 12.2% | [Controls and Procedures](index=55&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures are effective with no material changes during the quarter - The Company's management concluded that **disclosure controls and procedures were effective** as of the end of the period covered by this report[221](index=221&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter[222](index=222&type=chunk) Part II: Other Information [Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) Current legal proceedings are not expected to have a materially adverse effect on the company's financials - Management believes that none of the legal proceedings are likely to have a **materially adverse effect** on its consolidated financial position or results[223](index=223&type=chunk) [Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors disclosed in the company's 2024 Annual Report - There have been **no material changes** with respect to the risk factors disclosed in the Company's Annual Report on Form 10-K for 2024[224](index=224&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase shares under its authorized program during the quarter - The Board of Directors authorized a share repurchase program of up to **$100 million**, expiring December 31, 2025[225](index=225&type=chunk) - **No shares were repurchased** under the authorized program during the three months ended June 30, 2025[226](index=226&type=chunk) [Other Items (3, 4, 5, 6)](index=56&type=section&id=Other%20Items) This section confirms no defaults, mine safety issues, or new insider trading arrangements during the quarter - The report confirms **no defaults on senior securities**, no mine safety disclosures, and no new Rule 10b5-1 trading arrangements by directors or officers[227](index=227&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)

Financial Data and Key Metrics Changes - Net income increased by 36% from the prior quarter, reaching $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 rose to 12.8%, with an efficiency ratio of 55% excluding merger-related charges [8] - Tangible book value per share increased by 12% year over year to $17.19 [9][10] 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 rose by 7% from the prior quarter to $126.9 million, with net interest margin expanding by 10 basis points to 3.58% [9][11] - Noninterest income, excluding securities activity, increased by 10% year over year to $24.5 million, driven by treasury management services and wealth management [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 successfully closed the Heartland Bancshares acquisition and is on track to close the Villages Bancorporation acquisition, which is expected to enhance profitability [5][10] - The company aims to maintain a strong capital position and continue organic growth while integrating recent acquisitions [24][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth outlook, citing strong economic conditions and demand for credit, with expectations for mid to high single-digit loan growth [34][36] - The competitive landscape is becoming increasingly competitive, particularly in commercial real estate, but the company remains optimistic about its growth trajectory [35][66] Other Important Information - The allowance for credit losses totaled $142.2 million, or 1.34% of total loans, with net charge-offs at $2.5 million, reflecting strong credit quality [18][19] - The company expects to exit the year with a core net interest margin of approximately 3.35%, with potential upside from acquisitions [12][84] Q&A Session Summary Question: Growth trends and competitive landscape in Florida - Management highlighted that growth is driven by recruiting top talent and strong economic conditions, with a robust pipeline for the upcoming quarters [32][34] Question: Outlook on funding costs and core deposit growth - Management indicated a focus on growing core operating accounts while managing deposit costs, with expectations for seasonal trends to turn favorable [39][41] Question: Loan pricing and spreads in commercial real estate - Management noted increased competition and some spread compression for high-quality assets, but credit quality remains stable [66][68] Question: Charge-off expectations and credit quality outlook - Management expressed confidence in stable credit quality moving forward, with expectations for mid-cycle charge-offs around 20 to 25 basis points [70][71] Question: Balance sheet optimization and margin expectations - Management discussed plans to optimize the balance sheet with the upcoming acquisitions, guiding for a core margin of 3.35% and potential increases from the acquisitions [83][84]

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]

Financial Performance - Net income increased 36% to $42.7 million, or $0.50 per diluted share[10] - Adjusted net income increased 39% to $44.5 million, or $0.52 per diluted share[10] - Net interest income totaled $127.3 million, an increase of $8.4 million, or 7%, from the prior quarter[14] - Net interest margin increased 10 basis points to 3.58%[14] - Excluding accretion on acquired loans, net interest margin expanded five basis points to 3.29%[14] - Tangible book value per share of $17.19 increased 12% year over year[10] Loan and Deposit Trends - Loans grew 6.4% on an annualized basis[10] - Loans outstanding increased by $165.8 million, or 6.4% annualized, from the prior quarter[33] - Total deposits decreased $77.2 million, or 2.5% annualized during the second quarter[58] - Year over year, deposits have increased by $381.5 million, or 3.1%[58] - Cost of deposits declined 13 basis points to 1.80%[10, 14] Acquisitions and Capital - Completed the acquisition of Heartland Bancshares, Inc, adding four branches and approximately $777 million in assets[10] - The proposed acquisition of Villages Bancorporation, Inc, which will add 19 branches and approximately $4.1 billion in assets, is expected to close in the fourth quarter of 2025[10] - Strong capital position, with a Tier 1 capital ratio of 14.6%[10]

Core Insights - Seacoast Banking (SBCF) reported a revenue of $151.39 million for the quarter ended June 2025, marking a year-over-year increase of 19.6% and exceeding the Zacks Consensus Estimate of $145.15 million by 4.3% [1] - The company's EPS for the same period was $0.52, up from $0.36 a year ago, representing an EPS surprise of 23.81% compared to the consensus estimate of $0.42 [1] Financial Performance Metrics - Net Interest Margin was reported at 3.6%, slightly above the three-analyst average estimate of 3.5% [4] - The Efficiency Ratio stood at 57%, outperforming the three-analyst average estimate of 61.6% [4] - Net charge-offs to average loans were 0.1%, better than the two-analyst average estimate of 0.3% [4] - Nonperforming loans totaled $64.2 million, lower than the average estimate of $74.34 million by two analysts [4] - Total Nonperforming Assets were reported at $69.53 million, compared to the two-analyst average estimate of $81.56 million [4] - Average Balance of Total Earning Assets was $14.25 billion, slightly above the two-analyst average estimate of $14.21 billion [4] - Total noninterest income reached $24.52 million, exceeding the three-analyst average estimate of $21.84 million [4] - Net interest income (FTE) was reported at $127.29 million, surpassing the three-analyst average estimate of $122.18 million [4] - Net interest income was $126.86 million, compared to the two-analyst average estimate of $123.19 million [4] Stock Performance - Shares of Seacoast Banking have returned +10.8% over the past month, outperforming the Zacks S&P 500 composite's +5.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

[Q2 2025 Earnings Overview](index=1&type=section&id=Q2_2025_Earnings_Overview) Seacoast Banking Corporation of Florida reported strong second-quarter 2025 results, with significant increases in net income, net interest margin, and key profitability ratios. The company also highlighted strategic acquisitions aimed at expanding its footprint in key growth markets [Executive Summary](index=1&type=section&id=Executive_Summary) Seacoast Banking Corporation of Florida reported strong second-quarter 2025 results, with significant increases in net income, net interest margin, and key profitability ratios. The company also highlighted strategic acquisitions aimed at expanding its footprint in key growth markets Key Financial Metrics | Metric | Q2 2025 | Q1 2025 | Q2 2024 | YoY Change | QoQ Change | | :-------------------------------- | :------ | :------ | :------ | :--------- | :--------- | | Net Income (GAAP, $M) | $42.7 | $31.5 | $30.2 | +41.4% | +35.6% | | Diluted EPS (GAAP) | $0.50 | $0.37 | $0.36 | +38.9% | +35.1% | | Adjusted Net Income ($M) | $44.5 | $32.1 | $30.3 | +46.9% | +38.6% | | Adjusted Diluted EPS | $0.52 | $0.38 | $0.36 | +44.4% | +36.8% | | Net Interest Margin | 3.58% | 3.48% | 3.18% | +40 bps | +10 bps | | Return on Average Tangible Assets | 1.24% | 0.98% | 1.00% | +24 bps | +26 bps | | Return on Average Tangible Common Equity | 12.82% | 10.17% | 10.75% | +207 bps | +265 bps | - CEO Charles M. Shaffer highlighted the strength and momentum of the franchise, attributing the expansion in **net interest margin** to disciplined execution and strategic focus, consistent high-quality loan growth, and well-managed deposit costs. He also noted the continued expansion of fee-based revenue businesses and controlled expenses[2](index=2&type=chunk) - Seacoast is set to welcome two seasoned, high-performing franchises, Heartland Bancshares, Inc. and Villages Bancorporation, Inc., in the second half of the year. These acquisitions are expected to be transformative, expanding the company's footprint in key growth markets across Central Florida and The Villages®[2](index=2&type=chunk) [Acquisitions Update](index=2&type=section&id=Acquisitions_Update) Seacoast completed the acquisition of Heartland Bancshares, Inc. in July 2025 and announced the proposed acquisition of Villages Bancorporation, Inc., expected to close in Q4 2025, significantly expanding its loan and deposit base and market presence - The acquisition of Heartland Bancshares, Inc. was completed on July 11, 2025, adding approximately **$157 million in loans**, **$684 million in deposits**, and four branches in Central Florida for a total consideration of **$111.2 million** (50% cash, 50% stock)[4](index=4&type=chunk) - The proposed acquisition of Villages Bancorporation, Inc. was announced on May 29, 2025, and is expected to close in Q4 2025. This transaction will add approximately **$1.3 billion in loans** and **$3.5 billion in deposits** (as of June 30, 2025) and 19 branches, expanding Seacoast's presence in North Central Florida and The Villages community[5](index=5&type=chunk) [Detailed Financial Results](index=2&type=section&id=Detailed_Financial_Results) This section provides an in-depth analysis of Seacoast's financial performance, covering income statement, balance sheet, asset quality, capital, liquidity, and efficiency metrics for the quarter Overall Financial Performance Highlights | Metric | Q2 2025 ($M) | Q1 2025 ($M) | Q2 2024 ($M) | QoQ Change | YoY Change | | :-------------------------------- | :----------- | :----------- | :----------- | :--------- | :--------- | | Net Income (GAAP) | $42.7 | $31.5 | $30.2 | +35.6% | +41.4% | | Adjusted Net Income | $44.5 | $32.1 | $30.3 | +38.6% | +46.9% | | Net Revenues | $151.4 | $140.7 | $126.6 | +7.6% | +19.6% | | Adjusted Net Revenues | $151.8 | $140.9 | $126.9 | +7.7% | +19.6% | | Pre-tax pre-provision earnings | $60.2 | $50.6 | $44.6 | +19.0% | +35.0% | | Adjusted pre-tax pre-provision earnings | $62.6 | $51.7 | $44.5 | +21.1% | +40.7% | - Net interest income increased by **$8.3 million (7%) QoQ** and **$22.4 million (21%) YoY**, primarily due to higher securities and loan interest income. Securities income rose **11%** from purchases, and loan interest income increased **$6.4 million** from strong production and higher accretion on acquired loans[7](index=7&type=chunk) - The cost of deposits decreased by **$3.0 million (7%) QoQ** and **$10.7 million (21%) YoY**, reflecting a lower cost of deposits. However, interest expense on borrowed money increased by **$3.6 million (50%) QoQ** and **$4.6 million (75%) YoY**, mainly due to higher short-term borrowings for strategic securities purchases[7](index=7&type=chunk) [Income Statement Analysis](index=2&type=section&id=Income_Statement_Analysis) Seacoast's income statement for Q2 2025 showed robust growth across key metrics, driven by increased net interest income from higher securities and loan interest, and a decrease in deposit costs. Noninterest income also saw an increase, partially due to a one-time tax refund [Net Income and Earnings Per Share](index=1&type=section&id=Net_Income_and_Earnings_Per_Share) Net income and diluted EPS saw substantial year-over-year and quarter-over-quarter growth, reflecting strong operational performance and strategic execution Net Income and Diluted EPS Performance | Metric | Q2 2025 | Q1 2025 | Q2 2024 | YoY Change | QoQ Change | | :------------------- | :------ | :------ | :------ | :--------- | :--------- | | Net Income ($M) | $42.7 | $31.5 | $30.2 | +41.4% | +35.6% | | Diluted EPS | $0.50 | $0.37 | $0.36 | +38.9% | +35.1% | | Adjusted Net Income ($M) | $44.5 | $32.1 | $30.3 | +46.9% | +38.6% | | Adjusted Diluted EPS | $0.52 | $0.38 | $0.36 | +44.4% | +36.8% | [Net Revenues](index=2&type=section&id=Net_Revenues) Net revenues and adjusted net revenues demonstrated solid growth both quarter-over-quarter and year-over-year, indicating strong top-line performance Net Revenues Overview | Metric | Q2 2025 ($M) | Q1 2025 ($M) | Q2 2024 ($M) | QoQ Change | YoY Change | | :----------- | :----------- | :----------- | :----------- | :--------- | :--------- | | Net Revenues | $151.4 | $140.7 | $126.6 | +7.6% | +19.6% | | Adjusted Net Revenues | $151.8 | $140.9 | $126.9 | +7.7% | +19.6% | [Net Interest Income and Margin](index=2&type=section&id=Net_Interest_Income_and_Margin) Net interest income and net interest margin expanded significantly, driven by higher loan and securities yields and a reduction in the cost of deposits Net Interest Income and Margin Trends | Metric | Q2 2025 | Q1 2025 | Q2 2024 | QoQ Change | YoY Change | | :-------------------------------- | :------ | :------ | :------ | :--------- | :--------- | | Net Interest Income ($M) | $126.9 | $118.5 | $104.4 | +7.1% | +21.5% | | Net Interest Margin | 3.58% | 3.48% | 3.18% | +10 bps | +40 bps | | Net Interest Margin (excl. accretion) | 3.29% | 3.24% | N/A | +5 bps | N/A |\ | Loan Yields | 5.98% | 5.90% | N/A | +8 bps | N/A | | Securities Yields | 3.87% | 3.88% | N/A | -1 bps | N/A | | Cost of Deposits | 1.80% | 1.93% | N/A | -13 bps | N/A | [Provision for Credit Losses](index=3&type=section&id=Provision_for_Credit_Losses) Provision for credit losses decreased significantly quarter-over-quarter and year-over-year, while allowance coverage remained stable Provision for Credit Losses and Coverage | Metric | Q2 2025 ($M) | Q1 2025 ($M) | Q2 2024 ($M) | QoQ Change | YoY Change | | :------------------------ | :----------- | :----------- | :----------- | :--------- | :--------- | | Provision for Credit Losses | $4.4 | $9.3 | $4.9 | -52.7% | -10.2% | | Allowance Coverage | 1.34% | 1.34% | N/A | 0 bps | N/A | [Noninterest Income Breakdown](index=3&type=section&id=Noninterest_Income_Breakdown) Total noninterest income increased, primarily boosted by a one-time death benefit payout and tax refunds, alongside growth in service charges and wealth management Noninterest Income Categories | Noninterest Income Category | Q2 2025 ($M) | Q1 2025 ($M) | Q2 2024 ($M) | QoQ Change | YoY Change | | :-------------------------- | :----------- | :----------- | :----------- | :--------- | :--------- | | Total Noninterest Income | $24.5 | $22.2 | $22.2 | +10.4% | +10.4% | | Service charges on deposits | $5.5 | $5.2 | $5.3 | +5.8% | +3.8% | | Wealth management income | $4.2 | $4.2 | $3.8 | -0.0% | +10.5% | | Mortgage banking fees | $0.7 | $0.4 | $0.6 | +75.0% | +16.7% | | Insurance agency income | $1.3 | $1.6 | $1.4 | -18.8% | -7.1% | | BOLI income | $3.4 | $2.5 | $2.6 | +36.0% | +30.8% | | Other income | $7.5 | $6.3 | $6.6 | +19.0% | +13.6% | - The increase in BOLI income was primarily due to a **$0.9 million death benefit payout**. Other income included **$3.0 million in tax refunds** related to a prior bank acquisition, partially offset by lower gains on SBA loan sales and SBIC investments[8](index=8&type=chunk) [Noninterest Expense Breakdown](index=3&type=section&id=Noninterest_Expense_Breakdown) Total noninterest expense saw a modest increase, driven by higher salaries and merger-related charges, partially offset by a decrease in employee benefits Noninterest Expense Categories | Noninterest Expense Category | Q2 2025 ($M) | Q1 2025 ($M) | Q2 2024 ($M) | QoQ Change | YoY Change | | :--------------------------- | :----------- | :----------- | :----------- | :--------- | :--------- | | Total Noninterest Expense | $91.7 | $90.6 | $82.5 | +1.2% | +11.1% | | Salaries and wages | $44.4 | $42.2 | $38.9 | +5.2% | +14.1% | | Employee benefits | $8.1 | $8.9 | $6.9 | -9.0% | +17.4% | | Outsourced data processing | $8.5 | $8.5 | $8.2 | 0.0% | +3.7% | | Occupancy costs | $7.5 | $7.4 | $7.2 | +1.4% | +4.2% | | Marketing expenses | $3.0 | $2.7 | $3.3 | +11.1% | -9.1% | | Legal and professional fees | $2.1 | $2.7 | $2.0 | -22.2% | +5.0% | | Merger-related charges | $2.4 | $1.1 | $0.0 | +118.2% | N/A | - Salaries and wages increased primarily due to higher performance-driven incentive compensation. Employee benefits decreased QoQ due to seasonal factors. Merger-related charges significantly increased QoQ due to ongoing acquisition activities[8](index=8&type=chunk)[10](index=10&type=chunk) [Balance Sheet Analysis](index=4&type=section&id=Balance_Sheet_Analysis) Seacoast's balance sheet as of June 30, 2025, reflects continued asset growth, particularly in debt securities and loans, alongside a slight decrease in total deposits. The company maintains a disciplined approach to lending and deposit management Balance Sheet Key Metrics | Metric | June 30, 2025 ($B) | March 31, 2025 ($B) | June 30, 2024 ($B) | QoQ Change | YoY Change | | :-------------------------- | :----------------- | :------------------ | :----------------- | :--------- | :--------- | | Total Assets | $15.9 | $15.7 | $15.0 | +1.3% | +6.0% | | Total Shareholders' Equity | $2.3 | $2.2 | $2.1 | +4.5% | +9.5% | | Book Value Per Share | $26.43 | $26.04 | $24.98 | +1.5% | +5.8% | | Tangible Book Value Per Share | $17.19 | $16.71 | $15.41 | +2.9% | +11.5% | | Debt Securities | $3.5 | $3.3 | $2.6 | +6.1% | +34.6% | | Total Loans | $10.6 | $10.4 | $10.0 | +1.9% | +6.0% | | Total Deposits | $12.5 | $12.6 | $12.1 | -0.6% | +3.3% | [Assets Overview](index=4&type=section&id=Assets_Overview) Total assets grew, primarily driven by strategic investments in debt securities funded by short-term borrowings, with unrealized losses on AFS securities fully reflected Asset Composition | Metric | June 30, 2025 ($B) | March 31, 2025 ($B) | June 30, 2024 ($B) | QoQ Change | YoY Change | | :-------------------------- | :----------------- | :------------------ | :----------------- | :--------- | :--------- | | Total Assets | $15.9 | $15.7 | $15.0 | +1.3% | +6.0% | | Debt Securities | $3.5 | $3.3 | $2.6 | +6.1% | +34.6% | | Securities available-for-sale | $2.9 | $2.6 | $2.0 | +11.5% | +45.0% | | Securities held-to-maturity | $0.6 | $0.6 | $0.7 | -0.0% | -14.3% | - Strategic purchases of debt securities in the first half of 2025 were funded with short-term FHLB borrowings. The unrealized loss on available-for-sale securities is fully reflected on the balance sheet, and held-to-maturity securities are expected to recover price depreciation over their holding period[10](index=10&type=chunk) [Loans and Loan Pipelines](index=4&type=section&id=Loans_and_Loan_Pipelines) Total loans continued to grow with a disciplined lending approach, while loan pipelines, though down QoQ, remained strong YoY, supported by talent investments Loan Portfolio and Pipeline | Metric | June 30, 2025 ($B) | March 31, 2025 ($B) | June 30, 2024 ($B) | QoQ Change | YoY Change | | :-------------------- | :----------------- | :------------------ | :----------------- | :--------- | :--------- | | Total Loans | $10.6 | $10.4 | $10.0 | +1.9% | +6.0% | | Loan Growth (annualized) | 6.4% | N/A | N/A | N/A | N/A | | Total Loan Pipelines | $920.9M | $981.6M | $834.4M | -6.2% | +10.4% | | Commercial Pipelines | $861.2M | $904.1M | $773.1M | -4.7% | +11.4% | - The company continues to apply a disciplined approach to lending, benefiting from investments in talent to attract business from larger banks. While total loan pipelines decreased QoQ, they remain strong YoY[10](index=10&type=chunk) [Deposits and Funding](index=4&type=section&id=Deposits_and_Funding) Total deposits saw a slight decrease, but the company maintains a granular deposit franchise with a low cost of deposits, supplemented by increased FHLB advances Deposits and Funding Sources | Metric | June 30, 2025 ($B) | March 31, 2025 ($B) | June 30, 2024 ($B) | QoQ Change | YoY Change | | :-------------------- | :----------------- | :------------------ | :----------------- | :--------- | :--------- | | Total Deposits | $12.5 | $12.6 | $12.1 | -0.6% | +3.3% | | Deposit Decline (annualized) | 2.5% | N/A | N/A | N/A | N/A | | Cost of Deposits | 1.80% | 1.93% | N/A | -13 bps | N/A | | Customer Transaction Accounts (% of total deposits) | 47% | N/A | N/A | N/A | N/A | | FHLB Advances | $715.0M | $465.0M | N/A | +53.8% | N/A | - The company benefits from a granular deposit franchise, with the top ten depositors representing approximately **3% of total deposits**. Consumer deposits account for **40% of funding** with an average balance of **$25 thousand**, while commercial deposits represent **60%** with an average balance of **$113 thousand**[10](index=10&type=chunk)[14](index=14&type=chunk) [Asset Quality](index=5&type=section&id=Asset_Quality) Seacoast demonstrated strong asset quality in Q2 2025, with improvements in criticized and classified loans, nonperforming loans, and net charge-offs. The loan portfolio remains well-diversified Asset Quality Metrics | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | QoQ Change | YoY Change | | :-------------------------------- | :------------ | :------------- | :------------ | :--------- | :--------- | | Criticized & Classified Loans to Total Loans | 2.39% | 2.41% | 2.59% | -2 bps | -20 bps | | Nonperforming Loans ($M) | $64.2 | $71.0 | $59.9 | -9.6% | +7.2% | | Nonperforming Loans to Total Loans | 0.61% | 0.68% | 0.60% | -7 bps | +1 bps | | Accruing Past Due Loans ($M) | $14.2 | $17.2 | $29.5 | -17.4% | -51.9% | | Nonperforming Assets to Total Assets | 0.44% | 0.50% | 0.45% | -6 bps | -1 bps | | Allowance for Credit Losses to Total Loans | 1.34% | 1.34% | 1.41% | 0 bps | -7 bps | | Net Charge-offs ($M) | $2.5 | $7.0 | $9.9 | -64.3% | -74.7% | - The loan portfolio is well-diversified across asset mix, industry, and loan type, with an average loan size of **$437 thousand** and average commercial loan size of **$872 thousand**, indicating granularity[14](index=14&type=chunk) - Construction and land development and commercial real estate loans remain well below regulatory guidance, at **35%** and **239%** of total bank-level risk-based capital, respectively, as of June 30, 2025[14](index=14&type=chunk) [Capital and Liquidity](index=5&type=section&id=Capital_and_Liquidity) Seacoast maintains a strong capital position and ample liquidity, exceeding regulatory requirements and possessing significant available borrowing capacity Capital and Liquidity Ratios | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | QoQ Change | YoY Change | | :-------------------------------- | :------------ | :------------- | :------------ | :--------- | :--------- | | Tier 1 Capital Ratio | 14.6% | 14.7% | 14.8% | -10 bps | -20 bps | | Total Capital Ratio | 16.1% | N/A | N/A | N/A | N/A | | Common Equity Tier 1 Capital Ratio | 14.0% | N/A | N/A | N/A | N/A | | Tier 1 Leverage Ratio | 11.1% | N/A | N/A | N/A | N/A | | Loan-to-Deposit Ratio | 84.96% | 83.17% | 82.90% | +179 bps | +206 bps | | Tangible Common Equity to Tangible Assets | 9.75% | 9.58% | 9.30% | +17 bps | +45 bps | | Cash and Cash Equivalents ($M) | $332.4 | N/A | N/A | N/A | N/A | - The company is considered 'well capitalized' based on applicable U.S. regulatory capital ratio requirements. In addition to cash, Seacoast had **$5.9 billion** in available borrowing capacity, including **$3.5 billion** in collateralized lines of credit, **$2.0 billion** of unpledged debt securities, and **$0.3 billion** in unsecured lines of credit[14](index=14&type=chunk) [Efficiency Ratio](index=4&type=section&id=Efficiency_Ratio) Seacoast's efficiency ratio improved significantly in Q2 2025, reflecting higher net interest and noninterest income, partially offset by modestly higher expenses, demonstrating disciplined expense control and strategic investments for growth Efficiency Ratio Trends | Metric | Q2 2025 | Q1 2025 | Q2 2024 | QoQ Change | YoY Change | | :-------------------- | :------ | :------ | :------ | :--------- | :--------- | | Efficiency Ratio | 56.95% | 60.28% | 60.21% | -333 bps | -326 bps | | Adjusted Efficiency Ratio | 55.36% | 59.53% | 60.21% | -417 bps | -485 bps | [Supplementary Financial Information](index=6&type=section&id=Supplementary_Financial_Information) This section provides comprehensive supplementary financial data, including detailed tables for financial highlights, consolidated statements of income, balance sheets, credit analysis, loan portfolio, and average balances with yields and rates [Financial Highlights Table](index=6&type=section&id=Financial_Highlights_Table) This table provides a snapshot of key financial and performance metrics for Seacoast Banking Corporation of Florida over the past five quarters, including balance sheet data, performance ratios, and adjusted operating measures Financial Highlights (Amounts in thousands except per share data) | (Amounts in thousands except per share data) | 2Q'25 | 1Q'25 | 4Q'24 | 3Q'24 | 2Q'24 | | :------------------------------------------- | :---- | :---- | :---- | :---- | :---- | | **Selected balance sheet data:** | | | | | |\ | Gross loans | $10,608,824 | $10,443,021 | $10,299,950 | $10,205,281 | $10,038,508 | | Total deposits | 12,497,598 | 12,574,796 | 12,242,427 | 12,243,585 | 12,116,118 | | Total assets | 15,944,955 | 15,732,485 | 15,176,308 | 15,168,371 | 14,952,613 | | **Performance measures:** | | | | | |\ | Net income | $42,687 | $31,464 | $34,085 | $30,651 | $30,244 | | Net interest margin | 3.58 % | 3.48 % | 3.39 % | 3.17 % | 3.18 % | | Diluted earnings per share (EPS) | 0.50 | 0.37 | 0.40 | 0.36 | 0.36 | | Return on average assets (ROA) | 1.08 % | 0.83 % | 0.89 % | 0.81 % | 0.82 % | | Return on average tangible assets (ROTA) | 1.24 | 0.98 | 1.06 | 0.99 | 1.00 | | Return on average tangible common equity (ROTCE) | 12.82 | 10.17 | 10.90 | 10.31 | 10.75 | | Efficiency ratio | 56.95 % | 60.28 % | 56.26 % | 59.84 % | 60.21 % | | **Adjusted operating measures:** | | | | | |\ | Adjusted net income | $44,466 | $32,102 | $40,556 | $30,511 | $30,277 | | Adjusted diluted EPS | 0.52 | 0.38 | 0.48 | 0.36 | 0.36 | | Adjusted efficiency ratio | 55.36 | 59.53 | 56.07 | 59.84 | 60.21 | | **Other data:** | | | | | |\ | Full-time equivalent employees | 1,522 | 1,518 | 1,504 | 1,493 | 1,449 | | Full-service banking offices | 84 | 79 | 77 | 77 | 77 | [Consolidated Statements of Income Table](index=11&type=section&id=Consolidated_Statements_of_Income_Table) This table presents the unaudited consolidated statements of income for Seacoast Banking Corporation of Florida and its subsidiaries, detailing interest income, interest expense, net interest income, provision for credit losses, noninterest income, noninterest expense, and net income across quarterly and six-month periods Consolidated Statements of Income (Amounts in thousands, except per share data) | (Amounts in thousands, except per share data) | 2Q'25 | 1Q'25 | 4Q'24 | 3Q'24 | 2Q'24 | Six months ended 2Q'25 | Six months ended 2Q'24 | | :-------------------------------------------- | :---- | :---- | :---- | :---- | :---- | :--------------------- | :--------------------- | | Total Interest Income | $193,347 | $184,255 | $185,930 | $184,115 | $179,808 | $377,602 | $355,514 | | Total Interest Expense | 66,483 | 65,738 | 70,126 | 77,450 | 75,384 | 132,221 | 146,012 | | Net Interest Income | 126,864 | 118,517 | 115,804 | 106,665 | 104,424 | 245,381 | 209,502 | | Provision for credit losses | 4,379 | 9,250 | 3,699 | 6,273 | 4,918 | 13,629 | 6,286 | | Total Noninterest Income | 24,521 | 22,180 | 17,068 | 23,679 | 22,184 | 46,701 | 42,681 | | Total Noninterest Expense | 91,730 | 90,597 | 85,575 | 84,818 | 82,537 | 182,327 | 172,908 | | Income Before Income Taxes | 55,276 | 40,850 | 43,598 | 39,253 | 39,153 | 96,126 | 72,989 | | Provision for income taxes | 12,589 | 9,386 | 9,513 | 8,602 | 8,909 | 21,975 | 16,739 | | Net Income | $42,687 | $31,464 | $34,085 | $30,651 | $30,244 | $74,151 | $56,250 | | Diluted Net income per share | $0.50 | $0.37 | $0.40 | $0.36 | $0.36 | $0.87 | $0.66 | [Consolidated Balance Sheets Table](index=12&type=section&id=Consolidated_Balance_Sheets_Table) This table presents the unaudited consolidated balance sheets for Seacoast Banking Corporation of Florida and its subsidiaries, detailing assets, liabilities, and shareholders' equity at various quarter-end dates Consolidated Balance Sheets (Amounts in thousands) | (Amounts in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | **Assets** | | | | | |\ | Total cash and cash equivalents | $332,428 | $500,572 | $476,607 | $637,058 | $749,525 | | Total debt securities | 3,479,497 | 3,252,609 | 2,861,729 | 2,806,105 | 2,625,259 | | Loans, net of allowance for credit losses | 10,466,640 | 10,302,754 | 10,161,895 | 10,064,812 | 9,896,867 | | Goodwill | 732,417 | 732,417 | 732,417 | 732,417 | 732,417 | | Total Assets | $15,944,955 | $15,732,485 | $15,176,308 | $15,168,371 | $14,952,613 | | **Liabilities** | | | | | |\ | Total Deposits | 12,497,598 | 12,574,796 | 12,242,427 | 12,243,585 | 12,116,118 | | Federal Home Loan Bank borrowings | 715,000 | 465,000 | 245,000 | 245,000 | 180,000 | | Total Liabilities | 13,673,390 | 13,502,745 | 12,993,065 | 12,974,521 | 12,822,232 | | **Shareholders' Equity** | | | | | |\ | Total Shareholders' Equity | 2,271,565 | 2,229,740 | 2,183,243 | 2,193,850 | 2,130,381 | | Total Liabilities & Shareholders' Equity | $15,944,955 | $15,732,485 | $15,176,308 | $15,168,371 | $14,952,613 | | Common shares outstanding | 85,948 | 85,618 | 85,568 | 85,441 | 85,299 | [Credit Analysis and Loan Portfolio Table](index=13&type=section&id=Credit_Analysis_and_Loan_Portfolio_Table) This table provides a detailed breakdown of Seacoast's credit quality metrics and loan portfolio composition by type for various quarter-end periods Credit Analysis and Loan Portfolio (Amounts in thousands) | (Amounts in thousands) | 2Q'25 | 1Q'25 | 4Q'24 | 3Q'24 | 2Q'24 | | :------------------------------------ | :---- | :---- | :---- | :---- | :---- | | **Credit Analysis** | | | | | |\ | Net charge-offs | $2,462 | $7,038 | $6,113 | $7,445 | $9,946 | | Net charge-offs to average loans | 0.09 % | 0.27 % | 0.24 % | 0.29 % | 0.40 % | | Allowance for credit losses | $142,184 | $140,267 | $138,055 | $140,469 | $141,641 | | Total allowance for credit losses to total loans at end of period | 1.34 % | 1.34 % | 1.34 % | 1.38 % | 1.41 % | | Nonperforming loans | $64,198 | $71,018 | $92,446 | $80,857 | $59,927 | | Nonperforming Loans to Loans at End of Period | 0.61 % | 0.68 % | 0.90 % | 0.79 % | 0.60 % | | Nonperforming Assets to Total Assets at End of Period | 0.44 | 0.50 | 0.65 | 0.58 | 0.45 | | **Loans by Type (End of Period)** | | | | | |\ | Construction and land development | $603,079 | $618,493 | $648,054 | $595,753 | $593,534 | | Commercial real estate - owner occupied | 1,778,930 | 1,713,579 | 1,686,629 | 1,676,814 | 1,656,391 | | Commercial real estate - non-owner occupied | 3,624,528 | 3,513,400 | 3,503,807 | 3,573,076 | 3,423,266 | | Residential real estate | 2,678,042 | 2,653,012 | 2,616,784 | 2,564,903 | 2,555,320 | | Commercial and financial | 1,741,158 | 1,753,090 | 1,651,355 | 1,575,228 | 1,582,290 | | Consumer | 183,087 | 191,447 | 193,321 | 219,507 | 227,707 | | Total Loans | $10,608,824 | $10,443,021 | $10,299,950 | $10,205,281 | $10,038,508 | [Average Balances, Interest Income and Expenses, Yields and Rates Tables](index=14&type=section&id=Average_Balances_Interest_Income_and_Expenses_Yields_and_Rates_Tables) These tables provide a comprehensive breakdown of average earning assets, interest-bearing liabilities, and their corresponding interest income, expenses, yields, and rates for both quarterly and six-month periods, on a fully taxable equivalent basis Average Balances, Interest Income and Expenses, Yields and Rates **Quarterly Trends (2Q'25 vs 1Q'25 vs 2Q'24):** | Metric | 2Q'25 Average Balance ($M) | 2Q'25 Interest ($M) | 2Q'25 Yield/Rate | 1Q'25 Average Balance ($M) | 1Q'25 Interest ($M) | 1Q'25 Yield/Rate | 2Q'24 Average Balance ($M) | 2Q'24 Interest ($M) | 2Q'24 Yield/Rate | | :------------------------------------ | :----------------------- | :------------------ | :--------------- | :----------------------- | :------------------ | :--------------- | :----------------------- | :------------------ | :--------------- | | Total Earning Assets | $14,250,137 | $193,779 | 5.45 % | $13,832,739 | $184,594 | 5.41 % | $13,249,604 | $180,041 | 5.47 % | | Total Interest-Bearing Liabilities | $10,008,353 | $66,486 | 2.66 % | $9,724,319 | $65,737 | 2.74 % | $9,101,576 | $75,384 | 3.33 % | | Cost of deposits | N/A | N/A | 1.80 % | N/A | N/A | 1.93 % | N/A | N/A | 2.31 % | | Net interest income as a % of earning assets | N/A | $127,293 | 3.58 % | N/A | $118,857 | 3.48 % | N/A | $104,657 | 3.18 % | **Six Months Ended June 30, 2025 vs June 30, 2024:** | Metric | 2025 Average Balance ($M) | 2025 Interest ($M) | 2025 Yield/Rate | 2024 Average Balance ($M) | 2024 Interest ($M) | 2024 Yield/Rate | | :------------------------------------ | :----------------------- | :----------------- | :-------------- | :----------------------- | :----------------- | :-------------- | | Total Earning Assets | $14,042,591 | $378,374 | 5.43 % | $13,167,611 | $355,966 | 5.44 % | | Total Interest-Bearing Liabilities | $9,867,122 | $132,221 | 2.70 % | $8,995,399 | $146,012 | 3.26 % | | Cost of deposits | N/A | N/A | 1.87 % | N/A | N/A | 2.25 % | | Net interest income as a % of earning assets | N/A | $246,153 | 3.53 % | N/A | $209,954 | 3.21 % | [Customer Relationship Funding Table](index=17&type=section&id=Customer_Relationship_Funding_Table) This table details the composition of customer deposits and funding sources, categorized by commercial, retail, public funds, and other, across various account types for recent quarter-end periods Customer Relationship Funding (Amounts in thousands) | (Amounts in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | **Noninterest demand** | | | | | |\ | Commercial | $2,717,688 | $2,830,497 | $2,621,469 | $2,731,564 | $2,664,353 | | Retail | 509,539 | 536,661 | 502,967 | 509,527 | 532,623 | | Total Noninterest Demand | 3,376,941 | 3,492,491 | 3,352,372 | 3,443,455 | 3,397,918 | | **Interest-bearing demand** | | | | | |\ | Commercial | 1,466,184 | 1,520,186 | 1,467,508 | 1,426,920 | 1,533,725 | | Retail | 838,340 | 881,282 | 881,236 | 874,043 | 892,032 | | Total Interest-Bearing Demand | 2,518,857 | 2,734,260 | 2,667,843 | 2,487,448 | 2,821,092 | | **Total Transaction Accounts** | | | | | |\ | Commercial | 4,183,872 | 4,350,683 | 4,088,977 | 4,158,484 | 4,198,078 | | Retail | 1,347,879 | 1,417,943 | 1,384,203 | 1,383,570 | 1,424,655 | | Total Transaction Accounts | 5,895,798 | 6,226,751 | 6,020,215 | 5,930,903 | 6,219,010 | | **Total Deposits** | $12,497,598 | $12,574,796 | $12,242,427 | $12,243,585 | $12,116,118 | | Total customer funding | $12,171,358 | $12,513,463 | $12,180,860 | $12,197,225 | $12,053,216 | [Non-GAAP Financial Measures and Other Information](index=7&type=section&id=Non_GAAP_Financial_Measures_and_Other_Information) This section explains the rationale for using non-GAAP financial measures, provides detailed reconciliations to GAAP, and includes important company information and forward-looking statements [Explanation of Non-GAAP Financial Measures](index=18&type=section&id=Explanation_of_Non_GAAP_Financial_Measures) This section clarifies the use of non-GAAP financial measures by management to analyze company performance, providing supplemental information and a clearer understanding for investors, while acknowledging their limitations and providing reconciliations to GAAP - Management uses non-GAAP financial measures to analyze the Company's performance, believing they provide useful supplemental information and a clearer understanding of performance, and enhance investors' understanding of the business[34](index=34&type=chunk) - These measures are also useful for understanding performance trends and facilitating comparisons with other financial institutions. However, limitations include potential disagreements on component items and differing definitions across companies[34](index=34&type=chunk) - The Company provides reconciliations between GAAP and non-GAAP measures, emphasizing that these disclosures should not be considered an alternative to GAAP[34](index=34&type=chunk) [GAAP to Non-GAAP Reconciliation Tables](index=19&type=section&id=GAAP_to_Non_GAAP_Reconciliation_Tables) These tables provide detailed reconciliations of GAAP financial measures to their corresponding non-GAAP adjusted measures, including net income, earnings per diluted share, pre-tax pre-provision earnings, return on average assets, return on average tangible assets, and net interest income, for quarterly and six-month periods GAAP to Non-GAAP Reconciliations **Net Income Reconciliation:** | Metric | 2Q'25 ($M) | 1Q'25 ($M) | 4Q'24 ($M) | 3Q'24 ($M) | 2Q'24 ($M) | Six Months Ended 2Q'25 ($M) | Six Months Ended 2Q'24 ($M) | | :-------------------------------- | :--------- | :--------- | :--------- | :--------- | :--------- | :-------------------------- | :-------------------------- | | Net Income (GAAP) | $42,687 | $31,464 | $34,085 | $30,651 | $30,244 | $74,151 | $56,250 | | Total Adjustments to Noninterest Income | (39) | (196) | 8,388 | (187) | 44 | (235) | (185) | | Total Adjustments to Noninterest Expense | (2,422) | (1,051) | — | — | — | (3,473) | (7,094) | | Tax effect of adjustments | 604 | 217 | 2,197 | (47) | 11 | 821 | 1,751 | | Adjusted Net Income | $44,466 | $32,102 | $40,556 | $30,511 | $30,277 | $76,568 | $61,408 | | Diluted EPS (GAAP) | $0.50 | $0.37 | $0.40 | $0.36 | $0.36 | $0.87 | $0.66 | | Adjusted Earnings per Diluted Share | $0.52 | $0.38 | $0.48 | $0.36 | $0.36 | $0.90 | $0.72 | **Return on Average Assets (ROA) Reconciliation:** | Metric | 2Q'25 | 1Q'25 | 4Q'24 | 3Q'24 | 2Q'24 | Six Months Ended 2Q'25 | Six Months Ended 2Q'24 | | :-------------------------------- | :---- | :---- | :---- | :---- | :---- | :------------------- | :------------------- | | ROA (GAAP) | 1.08 % | 0.83 % | 0.89 % | 0.81 % | 0.82 % | 0.96 % | 0.77 % | | Impact of other adjustments for Adjusted Net Income | 0.05 | 0.02 | 0.17 | — | — | 0.03 | 0.07 | | Adjusted ROA | 1.13 | 0.85 | 1.06 | 0.81 | 0.82 | 0.99 | 0.84 | **Return on Average Tangible Assets (ROTA) Reconciliation:** | Metric | 2Q'25 | 1Q'25 | 4Q'24 | 3Q'24 | 2Q'24 | Six Months Ended 2Q'25 | Six Months Ended 2Q'24 | | :-------------------------------- | :---- | :---- | :---- | :---- | :---- | :------------------- | :------------------- | | ROTA (GAAP) | 1.24 | 0.98 | 1.06 | 0.99 | 1.00 | 1.12 | 0.94 | | Impact of other adjustments for Adjusted Net Income | 0.05 | 0.02 | 0.18 | (0.01) | — | 0.03 | 0.08 | | Adjusted ROTA | 1.29 % | 1.00 % | 1.24 % | 0.98 % | 1.00 % | 1.15 % | 1.02 % | **Return on Average Tangible Common Equity (ROTCE) Reconciliation:** | Metric | 2Q'25 | 1Q'25 | 4Q'24 | 3Q'24 | 2Q'24 | Six Months Ended 2Q'25 | Six Months Ended 2Q'24 | | :-------------------------------- | :---- | :---- | :---- | :---- | :---- | :------------------- | :------------------- | | ROTCE (GAAP) | 12.82 | 10.17 | 10.90 | 10.31 | 10.75 | 11.52 | 10.15 | | Impact of other adjustments for Adjusted Net Income | 0.49 | 0.18 | 1.84 | (0.04) | 0.01 | 0.34 | 0.80 | | Adjusted ROTCE | 13.31 % | 10.35 % | 12.74 % | 10.27 % | 10.76 % | 11.86 % | 10.95 % | [Company Information and Forward-Looking Statements](index=7&type=section&id=Company_Information_and_Forward_Looking_Statements) This section provides general information about Seacoast Banking Corporation of Florida, details regarding conference calls and SEC filings, and a cautionary notice about forward-looking statements, outlining potential risks and uncertainties that could affect future results - Seacoast Banking Corporation of Florida is one of the largest community banks headquartered in Florida, with approximately **$15.9 billion in assets** and **$12.5 billion in deposits** as of June 30, 2025, offering integrated financial services through **84 full-service branches** and digital solutions[17](index=17&type=chunk) - The company urges investors to read the proxy statement/prospectus and other SEC filings related to the proposed merger of Villages Bancorporation, Inc. for important information[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) - The report includes a cautionary notice regarding forward-looking statements, highlighting various factors that could cause actual results to differ materially from expectations, such as economic conditions, interest rate changes, regulatory policies, acquisition risks, and cybersecurity threats[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk)

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.