Core Points - Seacoast Banking Corporation of Florida announced a quarterly cash dividend of $0.19 per common share, representing an approximate 5.6% increase from the previous quarter, payable on December 31, 2025 [1] - The company also declared a quarterly cash dividend of $0.19 per 1/1000 preferred share for its Series A Non-Voting Preferred Stock, also payable on December 31, 2025 [2] - Seacoast Banking Corporation has $15.9 billion in assets and $12.5 billion in deposits as of June 30, 2025, and operates 103 full-service branches across Florida [3] Company Overview - Seacoast Banking Corporation of Florida is one of the largest community banks in Florida, providing integrated financial services including commercial and consumer banking, wealth management, and mortgage services [3] - The company recently completed the acquisition of Villages Bancorporation, Inc., effective October 1, 2025, with the merger of Citizens First Bank into Seacoast National Bank [6][7]

Core Viewpoint - Seacoast Banking (SBCF) has experienced a bearish trend recently, losing 5.4% over the past two weeks, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be increasing [1][2]. Technical Analysis - The hammer chart pattern indicates a potential bottom in the stock price, suggesting that selling pressure may be exhausting [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that despite a downtrend, buying interest emerges to push the stock price up towards the opening price [4][5]. - The occurrence of a hammer pattern at the bottom of a downtrend signals that bears may be losing control, which could lead to a trend reversal [5]. Fundamental Analysis - Recent upward revisions in earnings estimates for SBCF serve as a bullish indicator, correlating strongly with near-term stock price movements [7]. - The consensus EPS estimate for SBCF has increased by 1% over the last 30 days, indicating that analysts expect better earnings than previously predicted [8]. - SBCF holds a Zacks Rank of 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, which typically outperform the market [9][10].

Core Insights - Seacoast Banking Corporation of Florida (SBCF) is identified as a "serial acquirer" in the financial market, indicating a strategy focused on growth through acquisitions [1] Company Analysis - The holding company for Seacoast Bank has been actively pursuing acquisition opportunities, which may enhance its market position and financial performance [1] Market Perspective - The analysis emphasizes that the best investment opportunities often lie in stocks that are less followed by average investors or those that do not accurately reflect current market opportunities [1]

Core Viewpoint - Seacoast Banking Corporation of Florida will release its third quarter 2025 results on October 27th, after market close [1] Company Announcement - Investors can access the earnings results on the company's website by selecting "Press Releases" under the "News/Events" section [1] - A conference call will be hosted by Seacoast following the earnings release on October 27th [1]

Core Viewpoint - Seacoast Banking Corporation of Florida has successfully completed its acquisition of Villages Bancorporation, Inc., effective October 1, 2025, with the merger of Citizens First Bank into Seacoast National Bank also taking place on the same date [1]. Group 1 - The acquisition marks a significant expansion for Seacoast Banking Corporation, enhancing its market presence [1]. - Citizens First Bank will be merged into Seacoast National Bank, which will remain as the surviving financial institution post-merger [1].

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]