This quarterly report represents an earnings surprise of 9.09%. A quarter ago, it was expected that this holding company for Seacoast National Bank would post earnings of $0.34 per share when it actually produced earnings of $0.31, delivering a surprise of -8.82%. Seacoast Banking, which belongs to the Zacks Banks - Southeast industry, posted revenues of $126.61 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.48%. This compares to year-ago revenues of $148.54 million. T ...

[Executive Summary & CEO Commentary](index=1&type=section&id=1.%20Executive%20Summary%20%26%20CEO%20Commentary) This section provides an overview of Seacoast Banking Corporation of Florida's Q2 2024 financial performance and the CEO's strategic outlook [Second Quarter 2024 Financial Highlights](index=1&type=section&id=1.1.%20Second%20Quarter%202024%20Financial%20Highlights) Seacoast Banking Corporation of Florida achieved growth in net income and adjusted net income, significant improvement in pre-tax pre-provision earnings, and enhanced returns on assets and tangible common equity in Q2 2024 Key Financial Metrics for Q2 2024 | Metric | 2Q24 | 1Q24 | 2Q23 | | :-------------------------------- | :----- | :----- | :----- | | Net Income (USD million) | 30.2 | 26.0 | 31.2 | | Diluted EPS (USD) | 0.36 | 0.31 | 0.37 | | Adjusted Net Income (USD million) | 30.3 | 31.1 | 43.5 | | Adjusted Diluted EPS (USD) | 0.36 | 0.37 | 0.51 | | Pre-Tax Pre-Provision Earnings (USD million) | 44.6 | 35.7 | 40.9 | | Pre-Tax Pre-Provision Earnings (QoQ Change) | +25% | - | - | | Pre-Tax Pre-Provision Earnings (YoY Change) | +9% | - | - | | Average Return on Tangible Assets (ROATA) | 1.00% | 0.89% | 1.06% | | Average Return on Tangible Common Equity (ROTCE) | 10.75% | 9.55% | 12.08% | [CEO's Strategic Outlook](index=1&type=section&id=1.2.%20CEO's%20Strategic%20Outlook) CEO Charles M. Shaffer highlights the company's mid-2024 transformation with loan growth, stable deposit costs, improved net interest income, and strategic investments - The company has entered a transformational phase in mid-2024, showing loan growth and stabilizing deposit costs, which supports an improved net interest income outlook[1](index=1&type=chunk) - Noninterest income is growing while expenses are carefully managed, driven by investments in revenue-generating bankers leading to stronger loan production and pipeline growth[1](index=1&type=chunk) - The company maintains a disciplined credit approach with a strong balance sheet, a **14.8% Tier 1 capital ratio**, a **9.30% tangible common equity to tangible assets ratio**, ample liquidity, and an **83% loan-to-deposit ratio**[1](index=1&type=chunk) [Financial Performance Overview](index=1&type=section&id=2.%20Financial%20Performance%20Overview) This section details the company's net income, earnings per share, net revenues, pre-tax pre-provision earnings, net interest income, noninterest income, noninterest expense, credit loss provision, income tax expense, and efficiency ratios [Net Income and Earnings Per Share](index=1&type=section&id=2.1.%20Net%20Income%20and%20Earnings%20Per%20Share) Q2 2024 net income and diluted EPS increased quarter-over-quarter but slightly decreased year-over-year, while adjusted figures declined both QoQ and YoY Net Income and EPS (GAAP) | Metric | 2Q24 | 1Q24 | 2Q23 | | :------------------- | :----- | :----- | :----- | | Net Income (USD million) | 30.2 | 26.0 | 31.2 | | Diluted EPS (USD) | 0.36 | 0.31 | 0.37 | Adjusted Net Income and EPS (Non-GAAP) | Metric | 2Q24 | 1Q24 | 2Q23 | | :------------------- | :----- | :----- | :----- | | Adjusted Net Income (USD million) | 30.3 | 31.1 | 43.5 | | Adjusted Diluted EPS (USD) | 0.36 | 0.37 | 0.51 | [Net Revenues and Pre-Tax Pre-Provision Earnings](index=1&type=section&id=2.2.%20Net%20Revenues%20and%20Pre-Tax%20Pre-Provision%20Earnings) Q2 2024 net revenues saw a slight QoQ increase but a YoY decrease, while pre-tax pre-provision earnings grew both QoQ and YoY Net Revenues and Pre-Tax Pre-Provision Earnings | Metric | 2Q24 | 1Q24 | 2Q23 | | :------------------------- | :----- | :----- | :----- | | Net Revenues (USD million) | 126.6 | 125.6 | 148.5 | | Net Revenues (QoQ Change) | +1% | - | - | | Net Revenues (YoY Change) | -15% | - | - | | Adjusted Net Revenues (USD million) | 126.9 | 125.6 | 148.9 | | Pre-Tax Pre-Provision Earnings (USD million) | 44.6 | 35.7 | 40.9 | | Pre-Tax Pre-Provision Earnings (QoQ Change) | +25% | - | - | | Pre-Tax Pre-Provision Earnings (YoY Change) | +9% | - | - | | Adjusted Pre-Tax Pre-Provision Earnings (USD million) | 44.5 | 42.5 | 57.2 | | Adjusted Pre-Tax Pre-Provision Earnings (QoQ Change) | +5% | - | - | | Adjusted Pre-Tax Pre-Provision Earnings (YoY Change) | -22% | - | - | [Net Interest Income and Margin](index=2&type=section&id=2.3.%20Net%20Interest%20Income%20and%20Margin) Q2 2024 net interest income slightly decreased QoQ and significantly YoY, primarily due to increased deposit interest expense and the prevailing interest rate environment Net Interest Income and Net Interest Margin | Metric | 2Q24 | 1Q24 | 2Q23 | | :------------------------- | :----- | :----- | :----- | | Net Interest Income (USD million) | 104.4 | 105.1 | 127.0 | | Net Interest Income (QoQ Change) | -1% | - | - | | Net Interest Income (YoY Change) | -18% | - | - | | Net Interest Margin | 3.18% | 3.24% | 3.86% | | Net Interest Margin Excluding Acquired Loan Amortization | 2.87% | 2.91% | - | | Loan Yield | 5.93% | 5.90% | 5.89% | | Securities Yield | 3.69% | 3.47% | 3.13% | | Cost of Deposits | 2.31% | 2.19% | 1.38% | - The decline in net interest income primarily reflects increased deposit balances and higher interest expense on deposits in a sustained elevated interest rate environment[19](index=19&type=chunk) [Noninterest Income](index=2&type=section&id=2.4.%20Noninterest%20Income) Q2 2024 noninterest income increased both QoQ and YoY, driven by growth in service charges, wealth management, insurance agency, and BOLI income, with other income also rising from a commercial real estate loan sale Noninterest Income Breakdown | Metric | 2Q24 (USD million) | QoQ Change | YoY Change | | :------------------- | :-------------- | :------ | :------ | | Total Noninterest Income | 22.2 | +8% | +3% | | Service Charges on Deposits | 5.3 | +8% | +17% | | Wealth Management Income | 3.8 | +6% | +14% | | Insurance Agency Income | 1.4 | +5% | +17% | | BOLI Income | 2.6 | +15% | +26% | | Other Income | 6.0 | +14% | +25% | - The wealth management division's assets under management reached **USD 1.9 billion**, reflecting continued success in building client relationships[19](index=19&type=chunk) - The Durbin Amendment, effective July 1, 2023, limits network interchange fee revenue from debit card transactions[19](index=19&type=chunk) [Noninterest Expense](index=3&type=section&id=2.5.%20Noninterest%20Expense) Q2 2024 noninterest expense significantly decreased QoQ and YoY due to completed cost-saving initiatives, including reduced salaries, benefits, data processing contract termination, and branch consolidation, despite increased marketing expenses Noninterest Expense Breakdown | Metric | 2Q24 (USD million) | QoQ Change | YoY Change | | :------------------- | :-------------- | :------ | :------ | | Total Noninterest Expense | 82.5 | -9% | -23% | | Salaries and Wages | 38.9 | -3% | - | | Employee Benefits | 6.9 | -13% | - | | Outsourced Data Processing Costs | 8.2 | -32% | - | | Occupancy Costs | 7.2 | -11% | - | | Marketing Expenses | 3.3 | +23% | - | - Q1 included **USD 2.1 million** in severance-related expenses and **USD 4.1 million** for data processing contract termination and system integration, leading to a significant decrease in related expenses in Q2[3](index=3&type=chunk) [Provision for Credit Losses and Income Tax Expense](index=3&type=section&id=2.6.%20Provision%20for%20Credit%20Losses%20and%20Income%20Tax%20Expense) Q2 2024 provision for credit losses substantially increased QoQ and shifted from a net benefit to a provision YoY, while income tax expense rose QoQ but fell YoY Provision for Credit Losses and Income Tax Expense | Metric | 2Q24 (USD million) | 1Q24 (USD million) | 2Q23 (USD million) | | :------------------- | :-------------- | :-------------- | :-------------- | | Provision for Credit Losses | 4.9 | 1.4 | (0.8) | | Income Tax Expense | 8.9 | 7.8 | 10.2 | [Efficiency Ratio](index=3&type=section&id=2.7.%20Efficiency%20Ratio) Q2 2024 efficiency ratio and adjusted efficiency ratio both significantly improved QoQ and YoY, reflecting the company's ongoing commitment to expense control Efficiency Ratios | Metric | 2Q24 | 1Q24 | 2Q23 | | :------------------- | :----- | :----- | :----- | | Efficiency Ratio | 60.21% | 66.78% | 67.34% | | Adjusted Efficiency Ratio | 60.21% | 61.13% | 56.44% | - The company remains focused on disciplined expense control while strategically investing for growth[3](index=3&type=chunk) [Balance Sheet Highlights](index=3&type=section&id=3.%20Balance%20Sheet%20Highlights) This section highlights the company's total assets, shareholders' equity, debt securities, loans, loan pipelines, and deposits, showcasing growth and strategic positioning [Total Assets and Shareholders' Equity](index=3&type=section&id=3.1.%20Total%20Assets%20and%20Shareholders'%20Equity) As of June 30, 2024, total assets and shareholders' equity both increased, with book value per share and tangible book value per share also showing an upward trend Total Assets and Shareholders' Equity | Metric | June 30, 2024 | March 31, 2024 | June 30, 2023 | | :------------------- | :-------------- | :-------------- | :-------------- | | Total Assets (USD billion) | 15.0 | 14.8 | 15.0 | | Total Shareholders' Equity (USD billion) | 2.1 | 2.1 | 2.1 | | Book Value Per Share (USD) | 24.98 | 24.93 | 24.14 | | Tangible Book Value Per Share (USD) | 15.41 | 15.26 | 14.24 | [Debt Securities](index=4&type=section&id=3.2.%20Debt%20Securities) As of June 30, 2024, total debt securities slightly increased, primarily consisting of available-for-sale securities, with held-to-maturity securities expected to recover unrealized losses over their holding period Debt Securities Composition | Metric | June 30, 2024 (USD billion) | March 31, 2024 (USD billion) | | :----------------------- | :----------------------- | :----------------------- | | Total Debt Securities | 2.6 | 2.6 | | Available-for-Sale Securities | 2.0 | - | | Held-to-Maturity Securities | 0.7 | - | | Fair Value of Held-to-Maturity Securities | 0.5 | - | - Held-to-maturity securities, primarily U.S. government agency-guaranteed mortgage-backed securities and collateralized mortgage obligations, are expected to recover any price depreciation over their holding period[4](index=4&type=chunk) [Loans and Loan Pipelines](index=4&type=section&id=3.3.%20Loans%20and%20Loan%20Pipelines) Q2 2024 saw QoQ growth in total loans and a significant increase in loan originations, with loan pipelines also expanding, reflecting successful investments in talent and client relationships Loan Growth and Pipelines | Metric | June 30, 2024 (USD billion) | QoQ Change (Annualized) | 2Q24 Loan Originations (USD million) | 1Q24 Loan Originations (USD million) | | :----------------------- | :----------------------- | :------------- | :------------------------ | :------------------------ | | Total Loans | 10.0 | +2.4% | - | - | | Loan Originations | - | - | 538.0 | 394.0 | | Loan Originations (QoQ Change) | - | - | +37% | - | | Total Loan Pipeline | 834.4 | +46% (QoQ) | - | - | | Total Loan Pipeline (YoY Change) | - | - | - | +193% | | Commercial Loan Pipeline | 743.8 | +49% (QoQ) | - | - | | SBA Loan Pipeline | 29.3 | +87% (QoQ) | - | - | - The company continues to employ a prudent lending approach, rigorously underwriting loans and setting high risk-adjusted return expectations[4](index=4&type=chunk) - The significant growth in the commercial loan pipeline is attributed to the company's recent investments in attracting regional banking talent, which has brought in substantial new client relationships[4](index=4&type=chunk) [Deposits](index=4&type=section&id=3.4.%20Deposits) As of June 30, 2024, total deposits grew QoQ, with customer transaction accounts comprising 50% of total deposits, supported by a diversified deposit base and ample liquidity Deposit Overview | Metric | June 30, 2024 (USD billion) | QoQ Change (Annualized) | | :----------------------- | :----------------------- | :------------- | | Total Deposits | 12.1 | +3.4% | | % of Customer Transaction Accounts | 50% | - | | % from Top Ten Depositors | ~4% | - | | Average Deposits per Banking Center (USD million) | 157 | - | | % of Uninsured Deposits | 34% | - | | % of Uninsured and Uncollateralized Deposits Excluding Public Funds | 29% | - | | % of Consumer Deposits | 42% | - | | % of Commercial Deposits | 58% | - | - The company possesses ample liquidity sources (cash and credit lines) equivalent to **154% of uninsured deposits** and **181% of uninsured and uncollateralized deposits**[4](index=4&type=chunk) [Asset Quality](index=5&type=section&id=4.%20Asset%20Quality) This section reviews the company's nonperforming loans, nonperforming assets, allowance for credit losses, net charge-offs, and portfolio diversification strategies [Nonperforming Loans and Assets](index=5&type=section&id=4.1.%20Nonperforming%20Loans%20and%20Assets) Q2 2024 nonperforming loans and assets both decreased QoQ but increased YoY, with similar trends observed in their respective ratios to total loans and assets Nonperforming Loans and Assets | Metric | June 30, 2024 (USD million) | March 31, 2024 (USD million) | June 30, 2023 (USD million) | | :------------------- | :----------------------- | :----------------------- | :----------------------- | | Nonperforming Loans | 59.9 | 77.2 | 48.3 | | Nonperforming Loans as % of Total Loans | 0.60% | 0.77% | 0.48% | | Nonperforming Assets as % of Total Assets | 0.45% | 0.57% | 0.37% | [Allowance for Credit Losses and Net Charge-offs](index=5&type=section&id=4.2.%20Allowance%20for%20Credit%20Losses%20and%20Net%20Charge-offs) Q2 2024 allowance for credit losses as a percentage of total loans decreased both QoQ and YoY, while net charge-offs significantly increased, reflecting prior established reserves Allowance for Credit Losses and Net Charge-offs | Metric | June 30, 2024 | March 31, 2024 | June 30, 2023 | | :------------------- | :-------------- | :-------------- | :-------------- | | Allowance for Credit Losses as % of Total Loans | 1.41% | 1.47% | 1.58% | | Net Charge-offs (USD million) | 9.9 | 3.6 | 0.7 | - This quarter's charge-offs primarily reflect reserves previously established within the allowance for credit losses[5](index=5&type=chunk) [Portfolio Diversification](index=5&type=section&id=4.3.%20Portfolio%20Diversification) A key element of the company's lending strategy is portfolio diversification across asset, industry, and loan types, maintaining granularity with small average loan sizes and exposure well below regulatory guidance Loan Portfolio Risk Exposure | Loan Type | % of Total Bank Risk-Weighted Capital (June 30, 2024) | % of Total Bank Risk-Weighted Capital (March 31, 2024) | | :------------------- | :----------------------------------- | :----------------------------------- | | Construction and Land Development | 36% | 39% | | Commercial Real Estate | 235% | 236% | | Average Loan Size (USD thousand) | 345 | - | | Average Commercial Loan Size (USD thousand) | 758 | - | - The company maintains broad exposure across industries and collateral types, with small average loan sizes contributing to portfolio granularity[5](index=5&type=chunk) [Capital and Liquidity](index=5&type=section&id=5.%20Capital%20and%20Liquidity) This section details the company's strong capital position, liquidity status, and share repurchase program, demonstrating financial strength and shareholder value initiatives [Capital Ratios](index=5&type=section&id=5.1.%20Capital%20Ratios) As of June 30, 2024, the company maintained a strong capital position, with all key capital ratios exceeding regulatory requirements, classifying it as "well-capitalized" Capital Ratios | Metric | June 30, 2024 | March 31, 2024 | June 30, 2023 | | :------------------- | :-------------- | :-------------- | :-------------- | | Tier 1 Capital Ratio | 14.8% | 14.7% | 13.5% | | Total Capital Ratio | 16.2% | - | - | | Common Equity Tier 1 Capital Ratio | 14.1% | - | - | | Tier 1 Leverage Ratio | 11.1% | - | - | | Tangible Common Equity to Tangible Assets Ratio | 9.30% | 9.25% | 8.53% | - The company is considered "well-capitalized" and meets applicable U.S. regulatory capital ratio requirements[46](index=46&type=chunk) [Liquidity Position](index=5&type=section&id=5.2.%20Liquidity%20Position) The company maintains a strong liquidity position with ample cash and cash equivalents, along with significant borrowing capacity sufficient to cover uninsured and uncollateralized deposits Liquidity Metrics | Metric | June 30, 2024 (USD million) | | :----------------------- | :----------------------- | | Cash and Cash Equivalents | 749.5 | | Federal Home Loan Bank Advances | 180.0 | | Loan-to-Deposit Ratio | 82.9% | | Available Borrowing Capacity (USD billion) | 5.6 | | Available Collateralized Credit Lines (USD billion) | 4.3 | | Unencumbered Debt Securities | 944.3 | | Available Unsecured Credit Lines (USD billion) | 0.3 | | Liquidity Sources Covering Uninsured and Uncollateralized Deposits | 181% | [Share Repurchase Program](index=5&type=section&id=5.3.%20Share%20Repurchase%20Program) The Board of Directors has authorized a common stock repurchase program of up to USD 100 million, with shares repurchased during Q2 2024 - The Board of Directors has authorized a common stock repurchase program of up to **USD 100 million**[46](index=46&type=chunk) - In Q2 2024, **39,892 shares** of the company's common stock were repurchased under the program[46](index=46&type=chunk) [Company Information](index=7&type=section&id=6.%20Company%20Information) This section provides an overview of Seacoast Banking Corporation of Florida and details regarding its upcoming conference call [About Seacoast Banking Corporation of Florida](index=7&type=section&id=6.1.%20About%20Seacoast%20Banking%20Corporation%20of%20Florida) Seacoast Banking Corporation of Florida is one of Florida's largest community banks, offering commercial and consumer banking, wealth management, and mortgage services through 77 branches and digital solutions - Seacoast Banking Corporation of Florida is one of Florida's largest community banks, with approximately **USD 15.0 billion in assets** and **USD 12.1 billion in deposits** as of June 30, 2024[7](index=7&type=chunk) - The company provides commercial and consumer banking, wealth management, and mortgage services to customers through **77 full-service branches** across Florida and advanced mobile and online banking solutions[7](index=7&type=chunk) [Conference Call Details](index=7&type=section&id=6.2.%20Conference%20Call%20Details) Seacoast will host a conference call on July 26, 2024, to discuss Q2 2024 earnings and business trends, with participation details and access to materials provided - A conference call will be held on **July 26, 2024, at 10:00 AM ET**, to discuss Q2 2024 earnings results and business trends[48](index=48&type=chunk) - Investors can participate by dialing **(800) 715-9871 (Conference ID: 5967990)**[48](index=48&type=chunk) - Conference charts and a replay will be available on the company's website, www.SeacoastBanking.com, under the "News/Events" and "Company Information" sections[48](index=48&type=chunk) [Cautionary Notice Regarding Forward-Looking Statements](index=7&type=section&id=7.%20Cautionary%20Notice%20Regarding%20Forward-Looking%20Statements) This section provides a disclaimer regarding forward-looking statements, outlining the inherent risks and uncertainties that could cause actual results to differ materially [Forward-Looking Statements Disclaimer](index=7&type=section&id=7.1.%20Forward-Looking%20Statements%20Disclaimer) This press release contains forward-looking statements as defined by securities laws, concerning future financial and operational results, cost savings, revenue growth, and economic conditions, with actual results potentially differing due to various risks - This press release contains "forward-looking statements" concerning future financial and operating results, cost savings, revenue growth, economic and seasonal conditions, and potential earnings improvements from cost controls, tax law changes, new initiatives, and bank integrations[32](index=32&type=chunk) - Forward-looking statements involve known and unknown risks, uncertainties, and other factors beyond the company's control that could cause actual results to differ materially from those stated[32](index=32&type=chunk) - The company undertakes no obligation to update any forward-looking statements and advises investors to refer to the risk factors described in its reports filed with the SEC[8](index=8&type=chunk)[32](index=32&type=chunk) [Unaudited Financial Tables](index=6&type=section&id=8.%20Unaudited%20Financial%20Tables) This section presents the company's unaudited financial tables, including highlights, condensed consolidated statements of income and balance sheets, credit analysis, average balances, and GAAP to non-GAAP reconciliations [Financial Highlights (Unaudited)](index=6&type=section&id=8.1.%20Financial%20Highlights%20Table) This table provides the company's unaudited financial highlights, including key income, profit, balance sheet, and performance ratio data, along with per-share figures, covering recent quarterly and six-month trends Financial Highlights (Unaudited) | Metric | 2Q'24 | 1Q'24 | 4Q'23 | 3Q'23 | 2Q'23 | | :----------------------------------------- | :---- | :---- | :---- | :---- | :---- | | Net Income (USD thousand) | 30,244 | 26,006 | 29,543 | 31,414 | 31,249 | | Adjusted Net Income (USD thousand) | 30,277 | 31,132 | 31,363 | 34,170 | 43,489 | | Net Interest Income (USD thousand) | 104,657 | 105,298 | 111,035 | 119,505 | 127,153 | | Net Interest Margin (%) | 3.18 | 3.24 | 3.36 | 3.57 | 3.86 | | Diluted EPS (USD) | 0.36 | 0.31 | 0.35 | 0.37 | 0.37 | | Average Return on Tangible Assets (%) | 1.00 | 0.89 | 0.99 | 1.04 | 1.06 | | Efficiency Ratio (%) | 60.21 | 66.78 | 60.32 | 62.60 | 67.34 | | Total Loans (USD thousand) | 10,038,508 | 9,978,052 | 10,062,940 | 10,011,186 | 10,117,919 | | Total Deposits (USD thousand) | 12,116,118 | 12,015,840 | 11,776,935 | 12,107,834 | 12,283,267 | | Total Assets (USD thousand) | 14,952,613 | 14,830,015 | 14,580,249 | 14,823,007 | 15,041,932 | [Condensed Consolidated Statements of Income (Unaudited)](index=10&type=section&id=8.2.%20Condensed%20Consolidated%20Statements%20of%20Income) This table presents the company's unaudited condensed consolidated statements of income, detailing interest income, interest expense, net interest income, provision for credit losses, noninterest income, noninterest expense, and income tax expense to arrive at net income and EPS Condensed Consolidated Statements of Income (Unaudited) | Metric (USD thousand) | 2Q'24 | 1Q'24 | 4Q'23 | 3Q'23 | 2Q'23 | | :----------------------------------- | :---- | :---- | :---- | :---- | :---- | | Total Interest Income | 179,808 | 175,706 | 176,855 | 179,846 | 174,283 | | Total Interest Expense | 75,384 | 70,628 | 66,036 | 60,540 | 47,320 | | Net Interest Income | 104,424 | 105,078 | 110,819 | 119,306 | 126,963 | | Provision for Credit Losses | 4,918 | 1,368 | 3,990 | 2,694 | (764) | | Total Noninterest Income | 22,184 | 20,497 | 17,338 | 17,793 | 21,576 | | Total Noninterest Expense | 82,537 | 90,371 | 86,367 | 93,915 | 107,865 | | Income Tax Expense | 8,909 | 7,830 | 8,257 | 9,076 | 10,189 | | Net Income | 30,244 | 26,006 | 29,543 | 31,414 | 31,249 | | Diluted EPS | 0.36 | 0.31 | 0.35 | 0.37 | 0.37 | [Condensed Consolidated Balance Sheets (Unaudited)](index=11&type=section&id=8.3.%20Condensed%20Consolidated%20Balance%20Sheets) This table provides the company's unaudited condensed consolidated balance sheets, detailing the composition of assets, liabilities, and shareholders' equity, including cash, securities, loans, deposits, and capital structure Condensed Consolidated Balance Sheets (Unaudited) | Metric (USD thousand) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | | :----------------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Total Cash and Cash Equivalents | 749,525 | 682,724 | 447,182 | 695,982 | 727,883 | | Total Debt Securities | 2,625,259 | 2,619,359 | 2,516,333 | 2,533,249 | 2,624,043 | | Total Loans | 10,038,508 | 9,978,052 | 10,062,940 | 10,011,186 | 10,117,919 | | Net Loans (Less Allowance for Credit Losses) | 9,896,867 | 9,831,383 | 9,914,009 | 9,861,525 | 9,958,204 | | Total Assets | 14,952,613 | 14,830,015 | 14,580,249 | 14,823,007 | 15,041,932 | | Total Deposits | 12,116,118 | 12,015,840 | 11,776,935 | 12,107,834 | 12,283,267 | | Total Liabilities | 12,822,232 | 12,712,265 | 12,472,163 | 12,774,613 | 12,987,900 | | Total Shareholders' Equity | 2,130,381 | 2,117,750 | 2,108,086 | 2,048,394 | 2,054,032 | [Credit Analysis (Unaudited)](index=12&type=section&id=8.4.%20Credit%20Analysis) This table presents the company's unaudited credit quality data, including trends in net charge-offs, allowance for credit losses, nonperforming loans, nonperforming assets, and loan portfolio composition Credit Analysis (Unaudited) | Metric | 2Q'24 | 1Q'24 | 4Q'23 | 3Q'23 | 2Q'23 | | :----------------------------------- | :---- | :---- | :---- | :---- | :---- | | Net Charge-offs (USD thousand) | 9,946 | 3,630 | 4,720 | 12,748 | 705 | | Net Charge-offs as % of Average Loans | 0.40 | 0.15 | 0.19 | 0.50 | 0.03 | | Allowance for Credit Losses (USD thousand) | 141,641 | 146,669 | 148,931 | 149,661 | 159,715 | | Allowance for Credit Losses as % of Total Loans | 1.41 | 1.47 | 1.48 | 1.49 | 1.58 | | Nonperforming Loans (USD thousand) | 59,927 | 77,205 | 65,104 | 41,508 | 48,326 | | Nonperforming Loans as % of Total Loans | 0.60 | 0.77 | 0.65 | 0.41 | 0.48 | | Total Nonperforming Assets (USD thousand) | 66,804 | 84,520 | 72,664 | 48,724 | 55,852 | | Nonperforming Assets as % of Total Assets | 0.45 | 0.57 | 0.50 | 0.33 | 0.37 | | Total Loans (USD thousand) | 10,038,508 | 9,978,052 | 10,062,940 | 10,011,186 | 10,117,919 | [Average Balances, Interest Income and Expenses, Yields and Rates (Unaudited) - Quarterly](index=13&type=section&id=8.5.%20Average%20Balances,%20Interest%20Income%20and%20Expenses,%20Yields%20and%20Rates) This table provides the company's unaudited average balances, interest income and expenses, yields, and rates, detailing the composition of interest-earning assets and interest-bearing liabilities with corresponding yields and costs, including quarterly and six-month trends Average Balances, Interest Income and Expenses, Yields and Rates (Unaudited) - Quarterly | Metric | 2Q'24 | 1Q'24 | 2Q'23 | | :----------------------------------- | :---- | :---- | :---- | | Average Balance of Total Interest-Earning Assets (USD thousand) | 13,249,604 | 13,085,616 | 13,208,698 | | Total Interest Income (USD thousand) | 180,041 | 175,926 | 174,473 | | Yield on Total Interest-Earning Assets (%) | 5.47 | 5.41 | 5.30 | | Average Balance of Total Interest-Bearing Liabilities (USD thousand) | 9,101,576 | 8,889,220 | 8,407,547 | | Total Interest Expense (USD thousand) | 75,384 | 70,628 | 47,320 | | Cost of Total Interest-Bearing Liabilities (%) | 3.33 | 3.20 | 2.26 | | Net Interest Income (USD thousand) | 104,657 | 105,298 | 127,153 | | Net Interest Margin (%) | 3.18 | 3.24 | 3.86 | | Cost of Deposits (%) | 2.31 | 2.19 | 1.38 | Average Balances, Interest Income and Expenses, Yields and Rates (Unaudited) - Six Months | Metric | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :----------------------------------- | :-------------------- | :-------------------- | | Average Balance of Total Interest-Earning Assets (USD thousand) | 13,167,611 | 12,759,225 | | Total Interest Income (USD thousand) | 355,966 | 332,663 | | Yield on Total Interest-Earning Assets (%) | 5.44 | 5.26 | | Average Balance of Total Interest-Bearing Liabilities (USD thousand) | 8,995,399 | 7,998,719 | | Total Interest Expense (USD thousand) | 146,012 | 74,159 | | Cost of Total Interest-Bearing Liabilities (%) | 3.26 | 1.87 | | Net Interest Income (USD thousand) | 209,954 | 258,504 | | Net Interest Margin (%) | 3.21 | 4.09 | | Cost of Deposits (%) | 2.25 | 1.09 | [Customer Relationship Funding (Unaudited)](index=15&type=section&id=8.6.%20Customer%20Relationship%20Funding) This table presents the company's unaudited customer relationship funding data, detailing the composition of noninterest-bearing demand, interest-bearing demand, savings, money market, and time deposits, categorized by commercial, retail, public funds, and brokered Customer Relationship Funding (Unaudited) | Deposit Type (USD thousand) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | | :----------------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Total Noninterest-Bearing Demand Deposits | 3,397,918 | 3,555,401 | 3,544,981 | 3,868,132 | 4,139,052 | | Total Interest-Bearing Demand Deposits | 2,821,092 | 2,711,041 | 2,790,210 | 2,800,152 | 2,816,656 | | Total Savings Deposits | 566,052 | 608,088 | 651,454 | 721,558 | 824,255 | | Total Money Market Deposits | 3,707,761 | 3,531,029 | 3,314,288 | 3,143,897 | 2,859,164 | | Total Time Deposits | 1,623,295 | 1,610,281 | 1,476,002 | 1,574,095 | 1,644,140 | | Total Deposits | 12,116,118 | 12,015,840 | 11,776,935 | 12,107,834 | 12,283,267 | [GAAP to Non-GAAP Reconciliation (Unaudited)](index=17&type=section&id=8.7.%20GAAP%20to%20Non-GAAP%20Reconciliation) This section provides the company's unaudited GAAP to non-GAAP financial metric reconciliation, detailing adjustments from GAAP data to non-GAAP metrics used by management for performance analysis, including adjusted net income, pre-tax pre-provision earnings, and efficiency ratios GAAP to Non-GAAP Reconciliation (Unaudited) | Metric (USD thousand) | 2Q'24 | 1Q'24 | 4Q'23 | 3Q'23 | 2Q'23 | | :----------------------------------- | :---- | :---- | :---- | :---- | :---- | | Net Income (GAAP) | 30,244 | 26,006 | 29,543 | 31,414 | 31,249 | | Adjusted Net Income (Non-GAAP) | 30,277 | 31,132 | 31,363 | 34,170 | 43,489 | | Pre-Tax Pre-Provision Earnings (GAAP) | 44,555 | 35,674 | 42,006 | 43,383 | 40,864 | | Adjusted Pre-Tax Pre-Provision Earnings (Non-GAAP) | 44,490 | 42,513 | 45,016 | 47,349 | 57,202 | | Diluted EPS (GAAP) (USD) | 0.36 | 0.31 | 0.35 | 0.37 | 0.37 | | Adjusted Diluted EPS (Non-GAAP) (USD) | 0.36 | 0.37 | 0.37 | 0.40 | 0.51 | | Efficiency Ratio (GAAP) (%) | 60.21% | 66.78% | 60.32% | 62.60% | 67.34% | | Adjusted Efficiency Ratio (Non-GAAP) (%) | 60.21% | 61.13% | 60.32% | 60.19% | 56.44% | - Management uses these non-GAAP financial measures to analyze company performance and believes these disclosures provide useful supplemental information for a clearer understanding of results[56](index=56&type=chunk)

STUART, Fla., July 01, 2024 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida (NASDAQ:SBCF), a bank holding company whose operating entity is Seacoast Bank, today announced it will release second quarter 2024 results on July 25th, after the market closes. Upon release, investors may access a copy of Seacoast's earnings results at the company's website www.SeacoastBanking.com on the home page by selecting "Press Releases" under the heading "News/Events." Seacoast will host a conference call July 26 ...

Group 1 - Seacoast Banking Corporation of Florida will release its second quarter 2024 results on July 25th, after market close [1] - The company has $14.8 billion in assets and $12.0 billion in deposits as of March 31, 2024 [2] - Seacoast provides a range of financial services including commercial and consumer banking, wealth management, and mortgage services [2] Group 2 - A conference call to discuss the second quarter 2024 earnings results will be held on July 26th at 10:00 a.m. Eastern Time [4] - Investors can access charts during the conference call via the company's website [4] - A recording of the conference call will be available shortly after the event and can be accessed for one year [4]

STUART, Fla., May 20, 2024 (GLOBE NEWSWIRE) -- Seacoast Bank, the banking subsidiary of Seacoast Banking Corporation of Florida (NASDAQ:SBCF) and one of the largest community banks in Florida, welcomes Tony Coley as Regional President for South Florida. Tony has over three decades of demonstrated success leading high-performing teams and has a profound understanding of the South Florida market. "Tony is passionate about new business development, community involvement and company culture which aligns perfect ...

Part I FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Seacoast Banking Corporation of Florida reported **$26.0 million net income** for Q1 2024, with total assets growing to **$14.83 billion** and deposits to **$12.02 billion** [Consolidated Statements of Income](index=3&type=section&id=Consolidated%20Statements%20of%20Income) Net income more than doubled to **$26.0 million** in Q1 2024, driven by lower provision for credit losses and reduced noninterest expense, despite decreased net interest income | Financial Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Total Interest Income** | $175,706 thousand | $157,991 thousand | | **Total Interest Expense** | $70,628 thousand | $26,839 thousand | | **Net Interest Income** | $105,078 thousand | $131,152 thousand | | **Provision for credit losses** | $1,368 thousand | $31,598 thousand | | **Total Noninterest Income** | $20,497 thousand | $22,445 thousand | | **Total Noninterest Expense** | $90,371 thousand | $107,475 thousand | | **Net Income** | $26,006 thousand | $11,827 thousand | | **Diluted EPS** | $0.31 | $0.15 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$14.83 billion** as of March 31, 2024, driven by cash and securities, while net loans slightly decreased and deposits rose to **$12.02 billion** | Balance Sheet Item | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | $14,830,015 | $14,580,249 | | Total cash and cash equivalents | $682,724 | $447,182 | | Total debt securities | $2,619,359 | $2,516,333 | | Loans, net of allowance | $9,831,383 | $9,914,009 | | Goodwill | $732,417 | $732,417 | | **Total Liabilities** | $12,712,265 | $12,472,163 | | Deposits | $12,015,840 | $11,776,935 | | **Total Shareholders' Equity** | $2,117,750 | $2,108,086 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 saw **$24.7 million** net cash from operations, **$25.7 million** used in investing, and **$236.6 million** provided by financing, leading to a **$235.5 million** net increase in cash | Cash Flow Activity | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $24,672 | $13,045 | | **Net cash (used in) provided by investing activities** | ($25,714) | $192,718 | | **Net cash provided by financing activities** | $236,584 | $383,540 | | **Net increase in cash and cash equivalents** | $235,542 | $589,303 | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes cover securities with **unrealized losses**, a loan portfolio with increased nonaccrual loans, the allowance for credit losses, derivatives, regulatory capital, and the 2023 acquisition - As of March 31, 2024, the Available-for-Sale (AFS) securities portfolio had a fair value of **$1.95 billion** with gross unrealized losses of **$223.6 million**[27](index=27&type=chunk)[33](index=33&type=chunk) - The Held-to-Maturity (HTM) portfolio had an amortized cost of **$669.9 million** with a fair value of **$540.2 million**[38](index=38&type=chunk) - Management believes unrealized losses are due to interest rate movements, not credit quality, and has not recorded an allowance for credit losses on these securities[38](index=38&type=chunk) - Total loans were **$9.98 billion** at March 31, 2024[42](index=42&type=chunk) - Nonaccrual loans increased to **$77.2 million** from **$65.1 million** at year-end 2023[46](index=46&type=chunk) - The allowance for credit losses (ACL) stood at **$146.7 million**, or **1.47%** of total loans[57](index=57&type=chunk) - The company uses interest rate swaps to hedge changes in the fair value of its AFS securities and a pool of residential mortgages[67](index=67&type=chunk)[68](index=68&type=chunk) - As of March 31, 2024, the notional amount of these hedges totaled **$600 million**[69](index=69&type=chunk) - The acquisition of Professional Holding Corp. on January 31, 2023, added approximately **$2.0 billion** in loans and **$2.1 billion** in deposits[81](index=81&type=chunk) - The total purchase price for the acquisition was **$421.0 million**, resulting in **$251.7 million** of goodwill[82](index=82&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2024 net income rose **120%** to **$26.0 million** due to lower credit loss provisions, despite a **20%** drop in net interest income and margin compression to **3.24%** [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Q1 2024 net income increased **120%** to **$26.0 million**, or **$0.31** diluted EPS, primarily due to a significantly lower provision for credit losses | Performance Metric | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Net Income | $26.0M | $29.5M | $11.8M | | Diluted EPS | $0.31 | $0.35 | $0.15 | | Adjusted Net Income (Non-GAAP) | $31.1M | $31.4M | $23.7M | | Adjusted Diluted EPS (Non-GAAP) | $0.37 | $0.37 | $0.29 | | Return on average tangible assets (Non-GAAP) | 0.89% | 0.99% | 0.52% | | Efficiency ratio | 66.78% | 60.32% | 64.62% | [Net Interest Income and Margin](index=32&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income decreased **20%** to **$105.1 million** in Q1 2024, with net interest margin compressing to **3.24%** due to rising deposit costs | Metric (Tax Equivalent Basis) | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Net Interest Income | $105.3M | $111.0M | $131.4M | | Net Interest Margin | 3.24% | 3.36% | 4.31% | | Yield on Earning Assets | 5.41% | 5.36% | 5.19% | | Rate on Interest Bearing Liabilities | 3.20% | 2.98% | 1.43% | | Cost of Deposits | 2.19% | 2.00% | 0.77% | - Accretion on acquired loans contributed **33 basis points** to the net interest margin in Q1 2024, down from **53 basis points** in Q1 2023[104](index=104&type=chunk) [Noninterest Income](index=35&type=section&id=Noninterest%20Income) Noninterest income decreased **9%** to **$20.5 million** in Q1 2024, primarily due to lower interchange income, partially offset by a Visa stock sale gain | Noninterest Income Component | Q1 2024 (in thousands) | Q4 2023 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | :--- | | Service charges on deposit accounts | $4,960 | $4,828 | $4,242 | | Interchange income | $1,888 | $2,433 | $4,694 | | Wealth management income | $3,540 | $3,261 | $3,063 | | Securities gains (losses), net | $229 | ($2,437) | $107 | | **Total Noninterest Income** | **$20,497** | **$17,338** | **$22,445** | - Interchange income decreased significantly year-over-year due to the Durbin amendment, effective for the Company on July 1, 2023[114](index=114&type=chunk) - A net securities gain of **$0.2 million** was recognized, resulting from a **$4.1 million** gain on the sale of Visa Class B stock, largely offset by **$3.8 million** in losses on the sale of other investment securities[118](index=118&type=chunk) [Noninterest Expenses](index=36&type=section&id=Noninterest%20Expenses) Noninterest expense decreased **16%** to **$90.4 million** in Q1 2024, reflecting lower merger-related charges and current quarter system consolidation and lease termination costs | Noninterest Expense Component | Q1 2024 (in thousands) | Q4 2023 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | :--- | | Salaries and wages | $40,304 | $38,435 | $47,616 | | Outsourced data processing costs | $12,118 | $8,609 | $14,553 | | Legal and professional fees | $2,151 | $3,294 | $7,479 | | **Total Noninterest Expense** | **$90,371** | **$86,367** | **$107,475** | - Q1 2024 expenses included **$4.1 million** in charges for contract terminations and modifications to consolidate systems and **$0.8 million** for early lease terminations[121](index=121&type=chunk)[122](index=122&type=chunk) - Q1 2023 expenses included **$17.5 million** in merger-related charges from the Professional acquisition, primarily in data processing, legal fees, and salaries[90](index=90&type=chunk)[119](index=119&type=chunk)[124](index=124&type=chunk) [Financial Condition](index=40&type=section&id=Financial%20Condition) Total assets grew to **$14.8 billion**, deposits to **$12.0 billion**, while net loans decreased; credit quality remained stable, and capital ratios exceeded 'well-capitalized' minimums - Total assets were **$14.8 billion** as of March 31, 2024, an increase of **2%** from December 31, 2023[131](index=131&type=chunk) - The loan portfolio decreased by **1%** to **$10.0 billion**, while the securities portfolio increased by **$103.0 million** to **$2.6 billion**[133](index=133&type=chunk)[140](index=140&type=chunk) - Total deposits increased by **2%** to **$12.0 billion**[167](index=167&type=chunk) - Uninsured and uncollateralized deposits represented **29%** of total deposits[172](index=172&type=chunk) - The company remains well-capitalized with a CET1 ratio of **14.01%** and a Total Risk-Based Capital Ratio of **16.14%** at March 31, 2024[188](index=188&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Interest rate risk is managed via ALCO, with simulations showing a **+200 bps** rate shock could decrease NII by **8.1%** and EVE by **14.1%** Projected Impact of Interest Rate Changes on Net Interest Income (as of March 31, 2024) | Change in Interest Rates | % Change in NII (1-12 months) | % Change in NII (13-24 months) | | :--- | :--- | :--- | | +2.00% | (8.1)% | (7.6)% | | +1.00% | (3.5)% | (3.1)% | | -1.00% | 0.7% | —% | | -2.00% | 0.2% | (2.5)% | Projected Impact of Interest Rate Changes on Economic Value of Equity (EVE) | Change in Interest Rates | % Change in EVE | | :--- | :--- | | +2.00% | (14.1)% | | +1.00% | (6.0)% | | -1.00% | 4.7% | | -2.00% | 8.0% | [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed effective disclosure controls and procedures as of March 31, 2024, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures were effective as of March 31, 2024[206](index=206&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended March 31, 2024[207](index=207&type=chunk) Part II OTHER INFORMATION [Item 1. Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal actions, none of which are expected to materially impact financial condition or results - Management does not expect any current legal proceedings to have a material adverse effect on the company[208](index=208&type=chunk) [Item 1A. Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were reported since the 2023 Annual Report on Form 10-K - No material changes to risk factors were reported since the 2023 Form 10-K filing[209](index=209&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) In Q1 2024, **9,796 shares** were repurchased at **$27.67** average price for tax purposes, separate from the **$100 million** authorized repurchase program - The Board of Directors authorized a renewal of the share repurchase program for up to **$100 million**, expiring on December 31, 2024[210](index=210&type=chunk) - No shares were repurchased under the authorized program during the three months ended March 31, 2024[211](index=211&type=chunk) Share Repurchases in Q1 2024 | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | 1/1/24 to 1/31/24 | 8,200 | $28.46 | | 2/1/24 to 2/29/24 | 1,596 | $24.14 | | 3/1/24 to 3/31/24 | 0 | N/A | | **Total - 1st Quarter** | **9,796** | **$27.67** | [Item 5. Other Information](index=53&type=section&id=Item%205.%20Other%20Information) A board member adopted a Rule 10b5-1 plan to sell up to **60,000 shares** of common stock, with sales commencing after Q1 2024 results disclosure - A board member, Dennis S. Hudson, III, established a Rule 10b5-1 trading plan to sell up to **60,000 shares** of common stock[214](index=214&type=chunk)

Start Time: 10:00 January 1, 0000 10:42 AM ET Seacoast Banking Corporation of Florida (NASDAQ:SBCF) Q1 2024 Earnings Conference Call April 26, 2024, 10:00 AM ET Company Participants Chuck Shaffer - Chairman and CEO Tracey Dexter - EVP and CFO James Stallings - EVP and Chief Credit Officer Michael Young - EVP, Treasurer and Director of IR Conference Call Participants Brandon King - Truist Securities David Pfister - Raymond James Woody Lay - KBW Stephen Scouten - Piper Sandler David Bishop - Hovde Group Opera ...

SEACOAST REPORTS FIRST QUARTER 2024 RESULTS Q1 Highlights Included Impressive Growth in Deposits, Successful Completion of Our Expense Initiative, and Building Wealth and Lending Pipelines Strong Capital Position Builds Quarter over Quarter STUART, Fla., April 25, 2024 /GLOBE NEWSWIRE/ -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the first quarter of 2024 of $26.0 million, or $0.31 per diluted share, compared to $29.5 million, or $0.35 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Registrant's Telephone Number, Including Area Code) For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Securities registered pursuant to Section 12(b) of the Act: For the transition period from _______ to _________ Commission File No. 0-13660 | Title of each c ...

Financial Data and Key Metrics Changes - Seacoast reported net income of $0.35 per share in Q4 2023, with an adjusted net income of $0.43 per share, excluding certain losses [14] - The pretax pre-provision return on tangible assets was 1.48%, and the adjusted return on tangible common equity was nearly 12% [10] - The efficiency ratio improved to 60% from 62.6% in the previous quarter [23][14] - Tier 1 capital ratio increased to 14.6%, positioning the company among the strongest banks in the nation [10][15] Business Line Data and Key Metrics Changes - Net interest income declined by $8.5 million or 7% during the quarter, primarily due to lower purchased loan accretion and higher deposit costs [16] - The loan portfolio grew by 2% annualized from the previous quarter, with average loan yields increasing to 5.4% [24][12] - Wealth Management revenues increased by 16% year-over-year, reaching $12.8 million [20] Market Data and Key Metrics Changes - Assets under management increased by 23% year-over-year to a record $1.7 billion, with significant new client acquisition [19] - Noninterest income, excluding securities activity, rose by $1.6 million to $19.8 million in Q4 [45] Company Strategy and Development Direction - The company is focused on maintaining a conservative balance sheet while strategically investing to stimulate growth in low-cost deposits [13] - Seacoast aims to optimize efficiency, having reduced headcount by 6% in Q3, which contributed to an 8% decrease in expenses in Q4 [39][7] - The company is exploring opportunities for M&A, particularly targeting smaller community banks under $1 billion [134] Management's Comments on Operating Environment and Future Outlook - Management noted that the first half of 2024 is expected to represent the low point for net interest margin and income [4] - The company anticipates three rate cuts in 2024, which could positively impact deposit flows and overall financial performance [125] - Management expressed confidence in the strength of their capital position and allowance for credit losses, which positions them well to navigate economic challenges [123][51] Other Important Information - The allowance for credit losses totaled $148.9 million, or 1.48% of total loans, indicating a strong position relative to peers [51] - The company recognized $2.9 million in losses on the sale of securities, reinvesting proceeds into higher-yielding securities [43] Q&A Session Summary Question: How does the company plan to fund loan growth and grow deposits in 2024? - Management indicated that deposit growth may be slightly below loan growth, with a focus on organic growth initiatives [65] Question: What are the expectations regarding credit quality and potential normalization? - Management noted that the increase in nonperforming loans was due to a couple of credits and expressed confidence in the overall credit quality [62] Question: How will the company manage the impact of higher insurance costs on borrowers? - Management acknowledged the challenges posed by increased insurance costs but stated that most borrowers are managing these pressures effectively [93] Question: What is the outlook for M&A activity in the near future? - Management indicated that conversations around M&A are picking up, with a focus on smaller community banks that fit their strategic criteria [134]