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.

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]