Acquisition Overview - Seacoast Banking Corporation of Florida will acquire Villages Bancorporation, Inc, the holding company of Citizens First Bank[1, 11] - The acquisition will add approximately $41 billion in assets, $13 billion in loans, and $35 billion in low-cost deposits to Seacoast[12] - Citizens First Bank has a 53% deposit market share within The Villages MSA[12, 31] Financial Impact - The acquisition is projected to result in approximately 24% earnings accretion for Seacoast[12, 15, 21] - The tangible book value earnback period is estimated to be 28 years[15, 21] - The implied aggregate transaction value is $7108 million[44] Strategic Rationale - The acquisition provides Seacoast with a scalable banking platform in a growing 55+ residential community[12] - The pro forma company will have approximately $21 billion in total assets[15, 21] - Approximately 16% of the pro forma deposits will be in The Villages MSA, which has experienced 28% population growth since 2020[23, 24] Transaction Details - The transaction structure involves 25% cash and 75% stock consideration[44] - Seacoast estimates pre-tax merger costs of $52 million[54] - Approximately $25 billion of VBI's AFS securities will be sold and reinvested into higher-yielding assets, with an anticipated reinvestment rate of 520%[54]

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]

Financial Performance - Net income was $315 million, with earnings per diluted share at $037[10] - Pre-tax pre-provision earnings increased to $506 million[10] - Net interest income totaled $1189 million, a 2% increase from the prior quarter[14] - Net interest margin expanded to 348%, or 324% excluding accretion on acquired loans[10] Deposits and Loans - Total deposits grew by $3324 million, or 110% annualized[10] Excluding brokered deposits, total deposits increased $3635 million, or 123% annualized[58] - Noninterest-bearing deposits grew by $1401 million, or 170% annualized[10] - Loans grew 56% on an annualized basis[10] Loans outstanding increased by $1431 million, or 56% annualized, from the prior quarter[35] Noninterest Income and Expense - Noninterest income increased $51 million from the prior quarter to $222 million, while adjusted noninterest income decreased $35 million to $220 million[18] - Wealth management income totaled $42 million, a 6% increase from the prior quarter and a 20% increase from the prior year quarter[19] Assets under management have grown 14% year over year[19] - Noninterest expense totaled $906 million, a 6% increase from the prior quarter[30] Asset Quality and Capital - Tier 1 capital ratio stood at 147%[9, 10] - Tangible book value per share increased 10% year over year to $1671[10] - Assets under management totaled $21 billion, increasing 14% year over year[24] Since 2021, assets under management have increased at a CAGR of 23%[26]

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]

Company Overview - Seacoast Banking (SBCF) shares increased by 6.2% to $23.62 in the last trading session, following a broader market rally and a significant volume of shares traded [1] - The stock had previously experienced a 12.1% decline over the past four weeks [1] Earnings Expectations - Seacoast Banking is projected to report quarterly earnings of $0.40 per share, reflecting a year-over-year increase of 29% [2] - Expected revenues for the upcoming quarter are $136.9 million, which is a 9% increase compared to the same quarter last year [2] Stock Performance Insights - The consensus EPS estimate for Seacoast Banking has remained stable over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [3] - The stock currently holds a Zacks Rank of 1 (Strong Buy), suggesting strong market confidence [3] Industry Context - Seacoast Banking operates within the Zacks Banks - Southeast industry, where HomeTrust Bancshares (HTB) also operates [3] - HomeTrust Bancshares has a consensus EPS estimate of $0.76, which is a 2.7% increase over the past month but represents a 13.6% decrease compared to the previous year [4]