UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to __________________. Commission File No. 0-13660 Seacoast Banking Corporation of Florida (Exact Name of Registrant as Specified in its Charter ...

Financial Data and Key Metrics Changes - The company reported a 10% increase in net interest income, reaching over $131 million, supported by higher loan yields and balances [50][63] - Adjusted pretax pre-provision earnings grew by 7% to $71.1 million, with a pretax pre-provision return on assets of 2.18% [49] - The net interest margin (NIM) slightly declined by 5 basis points to 4.31% [51][65] - The allowance for credit losses increased to $155.6 million, representing 1.54% of total loans [95] Business Line Data and Key Metrics Changes - Loan originations were primarily driven by the acquisition of Professional Bank, with a loan-to-deposit ratio of 82% [53][54] - Average loan yields increased by 57 basis points to 5.86%, including 69 basis points of accretion [58] - Adjusted noninterest income rose to $20.2 million, a 15% increase year-over-year [66] Market Data and Key Metrics Changes - The company has a strong deposit base with transaction accounts representing 59% of total deposits, highlighting a relationship-focused approach [83] - The cost of deposits increased to 77 basis points, reflecting competitive pressures in the market [84] - The Florida market continues to show strength, with significant population growth and economic resilience [76][141] Company Strategy and Development Direction - The company is focused on profitability and strong risk-adjusted returns, with a prudent approach to loan growth amid economic uncertainty [1][73] - There is an emphasis on maintaining a fortress balance sheet and capital generation, particularly following recent acquisitions [22][100] - The company aims to leverage its strong deposit franchise and customer relationships to drive future growth [40][112] Management's Comments on Operating Environment and Future Outlook - Management noted that the economic environment remains dynamic, with potential impacts from further rate hikes and quantitative tightening [13][31] - The company is prepared for potential downturns, with a strong capital position and disciplined credit culture [112][141] - Management expressed confidence in the stability of deposits despite recent banking sector volatility [61][99] Other Important Information - The company completed the acquisition of Professional Bank, which added $2 billion in deposits and increased market share in South Florida [44][54] - The efficiency ratio on an adjusted basis was 53%, reflecting disciplined expense management [56] - The company has a robust common equity Tier 1 ratio of 12.8% and a tangible common equity to tangible assets ratio of 8.4% [46] Q&A Session Summary Question: Impact of recent bank failures on deposits - Management confirmed no impact on deposits from recent bank failures, indicating stability in the deposit base [105] Question: Loan growth outlook - Management noted a conservative approach to lending, focusing on C&I loans and reducing exposure to construction and land development [108][120] Question: Customer growth trends - Management highlighted strong net customer growth in March, attributed to new talent and marketing efforts [116][118] Question: Reserve levels and economic conditions - Management discussed the allowance for credit losses and the potential need for adjustments based on evolving economic conditions [128] Question: Outlook for yield accretion - Management indicated that yield accretion is expected to trend down over time, but remains a significant contributor to net interest income [154]

This presentation contains "forward-looking statements" within the meaning, and protections, of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, cost savings, enhanced revenues, economic and seasonal conditions in the Company's markets, and improvements to reported earnings that may be realized from cost controls, tax law changes, new initiatives and for integration of ban ...

Part I [Item 1. Business](index=6&type=section&id=Item%201.%20Business) Seacoast Banking Corporation of Florida is a Florida-based financial holding company with $12.1 billion in assets as of December 31, 2022, offering diverse financial services through its subsidiary, Seacoast National Bank, and pursuing growth via organic expansion and strategic acquisitions while operating under extensive regulation - Seacoast is a financial holding company with its principal subsidiary being Seacoast National Bank. As of December 31, 2022, it had **total consolidated assets of $12.1 billion** and **total deposits of $10.0 billion**[21](index=21&type=chunk) - The company's growth strategy combines organic growth with opportunistic acquisitions. In 2022, Seacoast completed the acquisitions of **Sabal Palm Bancorp, Inc., Business Bank of Florida Corp., Drummond Banking Company, and Apollo Bancorp, Inc.**, significantly expanding its footprint in Florida[22](index=22&type=chunk)[26](index=26&type=chunk) - As of December 31, 2022, the company employed **1,490 full-time equivalent employees** and maintained a **high associate engagement score of 83.1%**, which is above the banking and finance industry benchmarks[29](index=29&type=chunk)[30](index=30&type=chunk) Regulatory Capital Ratios as of December 31, 2022 | Capital Ratio | Seacoast (Consolidated) | Seacoast Bank | Minimum to be Well-Capitalized (Bank) | | :--- | :--- | :--- | :--- | | Total Risk-Based Capital Ratio | 15.79% | 14.47% | 10.00% | | Tier 1 Capital Ratio | 14.79% | 13.46% | 8.00% | | Common Equity Tier 1 Capital Ratio (CET1) | 13.87% | 13.46% | 6.50% | | Leverage Ratio | 11.46% | 10.44% | 5.00% | - Due to exceeding the **$10 billion asset threshold** in 2022, Seacoast Bank will be subject to the Durbin Amendment's limits on debit card interchange fees starting July 1, 2023. This is expected to reduce the company's annualized after-tax revenue by approximately **$10 million**[77](index=77&type=chunk) [Item 1A. Risk Factors](index=16&type=section&id=Item%201A.%20Risk%20Factors) The company identifies several material risks to its business, including credit concentration in real estate, interest rate sensitivity, LIBOR transition challenges, intense competition, increased regulatory burdens from exceeding $10 billion in assets, and acquisition integration risks - A substantial portion of the loan portfolio is secured by real estate, with **50% of the portfolio comprised of loans secured by commercial real estate (CRE)** as of December 31, 2022, exposing the company to concentration risk and cyclical downturns[94](index=94&type=chunk)[95](index=95&type=chunk) - The company's profitability is highly dependent on net interest income, which is sensitive to interest rate changes. The Federal Reserve's policies on interest rates and inflation create uncertainty and could adversely affect loan demand, borrower repayment ability, and funding costs[101](index=101&type=chunk)[102](index=102&type=chunk) - The transition from LIBOR to alternative reference rates like SOFR is complex and may lead to significant expenses, litigation risk with borrowers, and a potential reduction in interest income. As of December 31, 2022, the company had approximately **$244 million in existing loans tied to LIBOR**[109](index=109&type=chunk)[110](index=110&type=chunk) - The company faces increasing competition from non-bank financial technology providers and the trend of "disintermediation," where consumers complete financial transactions without banks, which could result in the loss of fee income and low-cost customer deposits[117](index=117&type=chunk)[118](index=118&type=chunk) - Having exceeded **$10 billion in assets** in 2022, the company is subject to additional regulations, including limits on debit card interchange fees (Durbin Amendment) and direct supervision by the Consumer Financial Protection Bureau (CFPB), which could increase compliance costs and reduce revenue[147](index=147&type=chunk)[148](index=148&type=chunk) - The company's growth strategy involves acquisitions, which carry risks such as difficulties in integration, potential loss of key employees and customers, exposure to unknown liabilities, and failure to realize anticipated benefits and synergies[161](index=161&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk) [Item 1B. Unresolved Staff Comments](index=29&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that there are no unresolved staff comments - **None**[174](index=174&type=chunk) [Item 2. Properties](index=29&type=section&id=Item%202.%20Properties) Seacoast's corporate headquarters is a 68,000 square foot building in Stuart, Florida, owned by Seacoast Bank, which operated from 78 branch offices and other commercial lending offices throughout Florida as of December 31, 2022 - The company's headquarters is located at **815 Colorado Avenue in Stuart, Florida**[175](index=175&type=chunk) - As of December 31, 2022, Seacoast Bank operated **78 branch offices in Florida**, in addition to other commercial lending offices[176](index=176&type=chunk) [Item 3. Legal Proceedings](index=29&type=section&id=Item%203.%20Legal%20Proceedings) The company and its subsidiaries are involved in litigation incidental to their business operations in the ordinary course, with management believing no current proceedings will materially affect financial position, results, or cash flows - Management believes that **no ongoing litigation is likely to have a material effect** on the company's consolidated financial position, operating results, or cash flows[177](index=177&type=chunk) [Item 4. Mine Safety Disclosures](index=29&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - **Not applicable**[178](index=178&type=chunk) Part II [Item 5. Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=29&type=section&id=Item%205.%20Market%20For%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Seacoast's common stock trades on the NASDAQ Global Select Market under "SBCF", with the Board authorizing a $100 million share repurchase program renewal in December 2022, though no shares were repurchased in 2022 - The company's common stock is traded on the **NASDAQ Global Select Market** under the symbol "**SBCF**"[181](index=181&type=chunk) - On December 15, 2022, the Board of Directors renewed the share repurchase program, authorizing the purchase of up to **$100 million** of its common stock through December 31, 2023. The company **did not repurchase any shares** during the year ended December 31, 2022[185](index=185&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) For the year ended December 31, 2022, Seacoast reported net income of $106.5 million, a decrease from 2021 due to a higher provision for credit losses, while net interest income grew 33% with an expanded net interest margin, and the loan portfolio and deposits increased significantly, supported by acquisitions [Overview – Strategy and Results](index=31&type=section&id=Overview%20%E2%80%93%20Strategy%20and%20Results) Seacoast is one of Florida's largest community banks, with $12.1 billion in assets as of year-end 2022, executing a balanced growth strategy combining organic expansion with strategic acquisitions in Florida's high-growth markets, including four in 2022 and one in early 2023 - Seacoast is executing a balanced growth strategy of organic growth and strategic acquisitions, having completed **16 acquisitions since 2014** to expand its footprint in Florida's fastest-growing markets[194](index=194&type=chunk) Recent Acquisition Activity | Acquired Company | Primary Market(s) | Year | Acquired Loans ($M) | Acquired Deposits ($M) | | :--- | :--- | :--- | :--- | :--- | | Drummond Banking Company | Gainesville and Ocala | 2022 | $545 | $881 | | Apollo Bancshares, Inc. | Miami-Dade County | 2022 | $667 | $855 | | Florida Business Bank | Melbourne | 2022 | $122 | $166 | | Sabal Palm Bank | Sarasota | 2022 | $246 | $396 | | Legacy Bank of Florida | Boca Raton/Palm Beach | 2021 | $477 | $495 | [Results of Operations](index=33&type=section&id=Results%20of%20Operations) In 2022, net income was $106.5 million, down from $124.4 million in 2021, primarily due to a $26.2 million provision for credit losses, while net interest income rose 33% to $366.2 million with a net interest margin of 3.69%, and noninterest income and expenses saw declines and increases respectively Key Financial Results (2022 vs. 2021) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Net Income | $106.5 million | $124.4 million | | Diluted EPS | $1.66 | $2.18 | | Net Interest Income | $366.2 million | $276.0 million | | Net Interest Margin (FTE) | 3.69% | 3.27% | | Provision for Credit Losses | $26.2 million | ($9.4 million) | | Noninterest Income (excl. gains/losses) | $67.2 million | $71.3 million | | Noninterest Expense | $267.9 million | $197.4 million | - The increase in net interest income was driven by the rising interest rate environment, which increased yields on loans and securities. The yield on loans rose to **4.62% from 4.38%**, and the yield on securities increased to **2.21% from 1.61%**[201](index=201&type=chunk) - The cost of deposits remained low, increasing only **three basis points to 0.11%** in 2022, reflecting a favorable deposit mix with noninterest-bearing demand deposits representing **41% of total deposits** at year-end[201](index=201&type=chunk)[209](index=209&type=chunk) - Noninterest income was negatively impacted by a **70% decrease in mortgage banking fees to $3.5 million**, as rising rates slowed refinance and purchase activity. This was partially offset by a **15% increase in wealth management income to $11.1 million**[217](index=217&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk) [Financial Condition](index=48&type=section&id=Financial%20Condition) As of December 31, 2022, total assets grew 25% to $12.1 billion, with net loans increasing 37% to $8.1 billion and deposits growing 24% to $10.0 billion, while asset quality remained strong despite significant unrealized losses in the securities portfolio due to rising interest rates - Total assets increased by **$2.5 billion (25%) to $12.1 billion** at year-end 2022, reflecting both organic growth and acquisitions[249](index=249&type=chunk) Loan Portfolio Composition (December 31, 2022) | Loan Category | Amount ($M) | % of Total | | :--- | :--- | :--- | | Commercial real estate - non-owner occupied | $2,589.8 | 32% | | Residential real estate | $1,849.5 | 23% | | Commercial real estate - owner occupied | $1,478.3 | 18% | | Commercial and financial | $1,348.6 | 17% | | Construction and land development | $587.3 | 7% | | Consumer | $286.6 | 3% | | Paycheck Protection Program | $4.6 | 0% | | **Total Loans** | **$8,144.7** | **100%** | - Asset quality remained strong, with nonperforming assets decreasing to **$31.1 million, or 0.26% of total assets**, down from 0.46% at year-end 2021. Nonperforming loans as a percentage of total loans decreased to **0.35% from 0.52%**[277](index=277&type=chunk)[278](index=278&type=chunk) - The allowance for credit losses on loans increased to **$113.9 million**, representing **1.40% of total loans** (excluding PPP), compared to $83.3 million, or 1.43%, at the end of 2021[285](index=285&type=chunk)[286](index=286&type=chunk) - Total deposits grew **24% to $10.0 billion**. The deposit mix remained favorable, with noninterest-bearing demand deposits increasing to **41% of total deposits** from 38% in the prior year[302](index=302&type=chunk)[303](index=303&type=chunk) [Capital Resources and Management](index=57&type=section&id=Capital%20Resources%20and%20Management) At December 31, 2022, shareholders' equity increased 23% to $1.6 billion, with capital ratios remaining strong and well above regulatory requirements, though tangible book value was impacted by increased accumulated other comprehensive loss from unrealized securities losses Consolidated Capital Ratios (December 31, 2022 vs. 2021) | Ratio | Dec 31, 2022 | Dec 31, 2021 | Regulatory Minimum (for adequacy) | | :--- | :--- | :--- | :--- | | Common Equity Tier 1 (CET1) | 13.87% | 16.31% | 4.50% | | Tier 1 Capital | 14.79% | 17.40% | 6.00% | | Total Risk-Based Capital | 15.79% | 18.21% | 8.00% | | Leverage Ratio | 11.46% | 11.68% | 4.00% | - Shareholders' equity increased by **$297.0 million (23%) to $1.6 billion**, driven by net income and stock issuance for acquisitions, but was partially offset by a **$181.0 million increase in accumulated other comprehensive loss** due to declining securities values[318](index=318&type=chunk)[319](index=319&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, which it manages through simulation modeling to optimize net interest income (NII) and Economic Value of Equity (EVE), projecting an asset-sensitive position where rate increases benefit NII and EVE Projected Impact of Interest Rate Changes on Net Interest Income (as of Dec 31, 2022) | Change in Interest Rates | % Change in NII (1-12 months) | % Change in NII (13-24 months) | | :--- | :--- | :--- | | +2.00% | 7.1% | 9.9% | | +1.00% | 3.5% | 4.8% | | -1.00% | (3.7)% | (5.9)% | | -2.00% | (8.9)% | (14.4)% | Projected Impact of Interest Rate Changes on Economic Value of Equity (EVE) | Change in Interest Rates | % Change in EVE (2022) | % Change in EVE (2021) | | :--- | :--- | :--- | | +2.00% | 8.1% | 18.6% | | +1.00% | 4.3% | 10.2% | | -1.00% | (5.4)% | (10.8)% | | -2.00% | (13.9)% | N/A | [Item 8. Financial Statements and Supplementary Data](index=72&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2022, including balance sheets, income statements, and cash flows, along with notes, and an unqualified opinion from Crowe LLP on both financial statements and internal control effectiveness [Note 17 - Business Combinations](index=124&type=section&id=Note%2017%20-%20Business%20Combinations) In 2022, Seacoast completed four acquisitions—Apollo Bancshares, Drummond Banking Company, Business Bank of Florida, and Sabal Palm Bancorp—issuing common stock and recognizing $228.2 million in goodwill, significantly expanding its Florida presence, with a further acquisition of Professional Holding Corp. completed in January 2023 2022 Acquisitions Summary | Acquired Company | Closing Date | Total Purchase Price ($M) | Goodwill Recognized ($M) | Key Market | | :--- | :--- | :--- | :--- | :--- | | Apollo Bancshares, Inc. | Oct 7, 2022 | $145.8 | $90.2 | Miami-Dade | | Drummond Banking Company | Oct 7, 2022 | $158.3 | $103.5 | North Florida | | Sabal Palm Bancorp, Inc. | Jan 3, 2022 | $62.1 | $26.5 | Sarasota | | Business Bank of Florida, Corp. | Jan 3, 2022 | $32.0 | $8.0 | Melbourne | - On January 31, 2023, the Company completed its acquisition of Professional Holding Corp., which operated nine branches in South Florida with approximately **$2.2 billion in deposits** and **$2.1 billion in loans** as of December 31, 2022[639](index=639&type=chunk) [Item 9A. Controls and Procedures](index=134&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2022, with the assessment for internal controls excluding the recently acquired Drummond Banking Company as permitted by SEC guidance - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of the end of the period covered by the report[644](index=644&type=chunk) - Management's assessment of internal control over financial reporting concluded that **controls were effective** as of December 31, 2022. This assessment excluded the internal controls of Drummond Banking Company, acquired on October 7, 2022, in accordance with SEC guidance for recent acquisitions[646](index=646&type=chunk)[647](index=647&type=chunk) Part III [Items 10-14](index=135&type=section&id=Items%2010-14) Information for Items 10 through 14, covering Directors, Executive Officers, Corporate Governance, Executive Compensation, Security Ownership, Certain Relationships and Related Transactions, and Principal Accountant Fees and Services, is incorporated by reference from the registrant's 2023 Proxy Statement - Information for Part III, Items 10 through 14, is **incorporated by reference from the company's 2023 Proxy Statement**[652](index=652&type=chunk)[654](index=654&type=chunk)[658](index=658&type=chunk)[659](index=659&type=chunk) Part IV [Item 15. Exhibits, Financial Statement Schedules](index=137&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements included in Item 8 and provides a comprehensive list of exhibits filed with the report or incorporated by reference, with all required financial statement schedules omitted as not applicable or included elsewhere - This section lists all exhibits filed with the Form 10-K, including merger agreements, articles of incorporation, bylaws, indentures, and various management and compensation plans[662](index=662&type=chunk)[663](index=663&type=chunk)[664](index=664&type=chunk)[665](index=665&type=chunk)

Financial Data and Key Metrics Changes - The company generated $67 million in adjusted fourth quarter pre-tax, pre-provision earnings, an increase of $17.7 million from the prior quarter, achieving a 52% efficiency ratio [6] - Adjusted pre-tax pre-provision return on tangible assets improved to 2.28% and adjusted return on tangible equity improved to 15%, up from 12.5% [6] - The net interest margin expanded 69 basis points to 4.36%, with core basis expanding 43 basis points to 4.01% [19] - Net interest income expanded 36% during the quarter, adding $31.5 million [22] Business Line Data and Key Metrics Changes - Wealth Management was a bright spot, adding $425 million in assets under management over the last 12 months, bringing total assets under management to nearly $1.4 billion [10][15] - Adjusted non-interest income was $17.6 million, an increase of $1.2 million from the previous quarter [41] - Loan outstandings increased $241 million or 14% on an annualized basis, excluding acquisitions [28] Market Data and Key Metrics Changes - The cost of deposits increased only 12 basis points during the fourth quarter to 21 basis points, with expectations of a quicker increase in the coming months due to competitive environment [8][47] - Non-accrual loans represented 0.35% of total loans compared to 0.32% in the prior quarter [21] - The allowance for credit losses stands at 1.4% of total loans, reflecting potential economic conditions [10][49] Company Strategy and Development Direction - The company focused on expanding its franchise throughout Florida through acquisitions and new market launches, strengthening its competitive position [13][14] - Investments were made across operational areas to enhance digital experiences and commercial banking capabilities [4][5] - The company aims to maintain an efficiency ratio in the low 50s for the full-year 2023 [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Florida's economic strength, suggesting it could outperform the rest of the country during a downturn [17] - The company expects continued expansion of net interest income driven by balance sheet growth and modestly increasing yields on loans and securities [23] - Management remains cautious about loan growth expectations, guiding for mid-single digits in the first quarter [51][52] Other Important Information - The company completed the acquisition of Drummond Bank and Apollo, expanding its presence in North Florida and Miami-Dade County [14] - The efficiency ratio on an adjusted basis improved to 52%, reflecting disciplined investment pacing [27] - The company ended the quarter with a tangible common equity ratio of 9.1% and an allowance for credit losses coverage ratio of 1.40% [34][50] Q&A Session Summary Question: Loan growth expectations for the first quarter - Management indicated a mid-single digit growth expectation for the first quarter, driven by strong loan production and new talent [51][52] Question: Accretable yield forecast for 2023 - Management noted that accretable yield was difficult to model but expected it to be around $10 million to $11 million in the first quarter [68] Question: Future M&A activity - Management stated that future M&A would depend on market conditions and pricing, with readiness to pursue opportunities as they arise [69][99] Question: Deposit outflows and funding strategies - Management observed that most deposit outflows came from non-interest bearing accounts and emphasized a focus on maintaining low deposit costs while managing funding strategies [101][102]

Part I [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Seacoast Banking Corporation of Florida's unaudited condensed consolidated financial statements, including income, comprehensive income, balance sheets, cash flows, and shareholders' equity, with detailed notes on accounting policies, securities, loans, credit losses, derivatives, and business combinations [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20consolidated%20statements%20of%20income%20%E2%80%93%20Three%20and%20nine%20months%20ended%20September%2030%2C%202022%20and%202021) Net Income for Q3 2022 increased 27.4% year-over-year, driven by higher interest income, while year-to-date net income decreased 6.2% due to increased credit loss provisions | Metric (in thousands) | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | YoY Change (%) | | :-------------------- | :-------------------------- | :-------------------------- | :------------- | | Total Interest Income | $91,404 | $73,209 | 24.86% | | Total Interest Expense | $3,120 | $1,885 | 65.52% | | Net Interest Income | $88,284 | $71,324 | 23.78% | | Provision for credit losses | $4,676 | $5,091 | -8.15% | | Total Noninterest Income | $16,103 | $19,028 | -15.37% | | Total Noninterest Expense | $61,359 | $55,268 | 11.02% | | Income Before Income Taxes | $38,352 | $29,993 | 27.87% | | Net Income | $29,237 | $22,944 | 27.43% | | Diluted EPS | $0.47 | $0.40 | 17.50% | | Metric (in thousands) | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | YoY Change (%) | | :-------------------- | :-------------------------- | :-------------------------- | :------------- | | Total Interest Income | $253,385 | $210,302 | 20.49% | | Total Interest Expense | $6,932 | $6,566 | 5.58% | | Net Interest Income | $246,453 | $203,736 | 20.97% | | Provision for credit losses | $12,054 | $(5,479) | -320.00% |\ | Total Noninterest Income | $48,440 | $52,021 | -6.90% | | Total Noninterest Expense | $176,424 | $147,172 | 19.88% | | Income Before Income Taxes | $106,415 | $114,064 | -6.71% | | Net Income | $82,580 | $88,073 | -6.24% | | Diluted EPS | $1.33 | $1.56 | -14.74% | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20consolidated%20statements%20of%20comprehensive%20income%20%E2%80%93%20Three%20and%20nine%20months%20ended%20September%2030%2C%202022%20and%202021) The Company reported a Comprehensive Loss for both three and nine months ended September 30, 2022, primarily due to significant unrealized losses on available-for-sale securities | Metric (in thousands) | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | YoY Change (%) | | :-------------------- | :-------------------------- | :-------------------------- | :------------- | | Net Income | $29,237 | $22,944 | 27.43% | | Unrealized losses on AFS securities, net of tax benefit | $(63,736) | $(4,459) | 1339.00% | | Total other comprehensive (loss) income | $(63,682) | $(4,532) | 1305.00% | | Comprehensive (Loss) Income | $(34,445) | $18,412 | -287.00% | | Metric (in thousands) | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | YoY Change (%) | | :-------------------- | :-------------------------- | :-------------------------- | :------------- | | Net Income | $82,580 | $88,073 | -6.24% | | Unrealized losses on AFS securities, net of tax benefit | $(180,221) | $(15,014) | 1099.00% | | Total other comprehensive (loss) income | $(180,220) | $(15,101) | 1099.00% | | Comprehensive (Loss) Income | $(97,640) | $72,972 | -234.00% | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20consolidated%20balance%20sheets%20-%20September%2030%2C%202022%20and%20December%2031%2C%202021) Total Assets increased 6.8% to **$10.3 billion**, driven by loans and debt securities, while Total Liabilities rose 8.2% due to deposits, and Shareholders' Equity decreased 1.8% | Metric (in thousands) | Sep 30, 2022 | Dec 31, 2021 | Change (%) | | :-------------------- | :----------- | :----------- | :--------- | | Total cash and cash equivalents | $218,615 | $737,729 | -70.36% | | Total debt securities | $2,635,440 | $2,282,959 | 15.44% | | Loans, net of allowance for credit losses | $6,595,516 | $5,841,714 | 12.90% | | Total Assets | $10,345,235 | $9,681,433 | 6.85% | | Deposits | $8,765,414 | $8,067,589 | 8.65% | | Total Liabilities | $9,057,433 | $8,370,697 | 8.20% | | Total Shareholders' Equity | $1,287,802 | $1,310,736 | -1.75% | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20statements%20of%20cash%20flows%20%E2%80%93%20Nine%20months%20ended%20September%2030%2C%202022%20and%202021) Net cash from operating activities increased 40.7%, but a significant rise in investing activities and a sharp drop in financing cash led to a net decrease in cash and equivalents | Metric (in thousands) | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | YoY Change (%) | | :-------------------- | :-------------------------- | :-------------------------- | :------------- | | Net cash provided by operating activities | $147,363 | $104,764 | 40.66% | | Net cash used in investing activities | $(748,667) | $(129,217) | 479.38% | | Net cash provided by financing activities | $82,190 | $848,060 | -90.31% | | Net (decrease) increase in cash and cash equivalents | $(519,114) | $823,607 | -163.03% | | Cash and cash equivalents at end of period | $218,615 | $1,227,695 | -82.20% | [Consolidated Statements of Shareholders' Equity](index=9&type=section&id=Consolidated%20statements%20of%20shareholders'%20equity%20-%20Three%20and%20nine%20months%20ended%20September%2030%2C%202022%20and%202021) Total Shareholders' Equity decreased by **$71.0 million** in Q3 2022 and **$22.9 million** year-to-date, primarily due to significant accumulated other comprehensive losses, despite net income and stock issuances | Metric (in thousands) | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | YoY Change (%) | | :-------------------- | :-------------------------- | :-------------------------- | :------------- | | Net Income | $29,237 | $22,944 | 27.43% | | Accumulated Other Comprehensive Income (Loss) | $(63,682) | $(4,532) | 1305.00% | | Dividends on common stock | $(10,502) | $(7,610) | 38.00% | | Total Shareholders' Equity Change | $(71,015) | $108,173 | -165.64% | | Metric (in thousands) | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | YoY Change (%) | | :-------------------- | :-------------------------- | :-------------------------- | :------------- | | Net Income | $82,580 | $88,073 | -6.24% | | Issuance of common stock, pursuant to acquisition | $90,234 | $86,487 | 4.33% | | Accumulated Other Comprehensive Income (Loss) | $(180,220) | $(15,101) | 1099.00% | | Dividends on common stock | $(29,012) | $(14,856) | 95.29% | | Total Shareholders' Equity Change | $(22,934) | $160,118 | -114.32% | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20condensed%20consolidated%20financial%20statements) These notes provide detailed disclosures on accounting policies, EPS, securities, loans, credit losses, derivatives, repurchase agreements, equity, contingent liabilities, fair value, and business combinations [Note 1 – Basis of Presentation](index=11&type=section&id=Note%201%20%E2%80%93%20Basis%20of%20Presentation) Unaudited financial statements adhere to U.S. GAAP, relying on management's critical estimates for credit losses, acquisitions, and fair value, with ASU 2022-02 not expected to be material - The financial statements are unaudited and prepared in accordance with U.S. GAAP for interim financial information, including normal recurring accruals[19](index=19&type=chunk) - Management's estimates are critical for areas such as allowance for credit losses, acquisition accounting, intangible assets, fair value measurements, and contingent liabilities[21](index=21&type=chunk) - ASU 2022-02, effective for fiscal years beginning after December 15, 2022, eliminates TDR accounting guidance and introduces new disclosures; its adoption is not expected to be material[22](index=22&type=chunk) [Note 2 – Earnings per Share](index=12&type=section&id=Note%202%20%E2%80%93%20Earnings%20per%20Share) Basic EPS is net income divided by weighted average shares, while diluted EPS includes stock options; Q3 2022 diluted EPS was **$0.47**, with some options anti-dilutive | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :----- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net income | $29,237 | $22,944 | $82,580 | $88,073 | | Basic EPS | $0.48 | $0.40 | $1.35 | $1.57 | | Diluted EPS | $0.47 | $0.40 | $1.33 | $1.56 | | Average diluted shares outstanding | 61,961 | 57,645 | 61,867 | 56,441 | - For the three and nine months ended September 30, 2022, **1,505** options to purchase shares were anti-dilutive[23](index=23&type=chunk) [Note 3 – Securities](index=12&type=section&id=Note%203%20%E2%80%93%20Securities) Total debt securities reached **$2.64 billion**, with significant unrealized losses of **$246.7 million** on available-for-sale securities due to rising interest rates, not credit quality, with no allowance recorded | Metric (in thousands) | Sep 30, 2022 | Dec 31, 2021 | Change (%) | | :-------------------- | :----------- | :----------- | :--------- | | Debt securities available-for-sale (Fair Value) | $1,860,734 | $1,644,319 | 13.16% | | Debt securities held-to-maturity (Amortized Cost) | $774,706 | $638,640 | 21.30% | | Total Debt Securities | $2,635,440 | $2,282,959 | 15.44% | | Metric (in thousands) | Sep 30, 2022 | Dec 31, 2021 | Change (%) | | :-------------------- | :----------- | :----------- | :--------- | | Gross Unrealized Gains (AFS) | $251 | $11,518 | -97.82% | | Gross Unrealized Losses (AFS) | $(246,654) | $(20,857) | 1082.10% | | Gross Unrealized Gains (HTM) | $65 | $3,828 | -98.30% | | Gross Unrealized Losses (HTM) | $(129,332) | $(15,070) | 758.27% | - Unrealized losses on mortgage-backed securities, CLOs, private mortgage-backed securities, and municipal securities are attributed to changes in investment spreads and interest rate movements, not credit quality, with full recovery of amortized cost expected[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - No allowance for credit losses has been recorded for held-to-maturity debt securities, as they are government-sponsored entities with implied government guarantees and high credit ratings[36](index=36&type=chunk) [Note 4 – Loans](index=15&type=section&id=Note%204%20%E2%80%93%20Loans) The loan portfolio grew to **$6.69 billion**, driven by construction and commercial real estate, with a **$100 million** reclassification and improved credit quality metrics, including reduced nonaccrual loans | Loan Segment (in thousands) | Sep 30, 2022 | Dec 31, 2021 | Change (%) | | :-------------------------- | :----------- | :----------- | :--------- | | Construction and land development | $361,913 | $230,824 | 56.79% | | Commercial real estate - owner-occupied | $1,253,459 | $1,197,774 | 4.65% | | Commercial real estate - non owner-occupied | $2,107,614 | $1,736,439 | 21.38% | | Residential real estate | $1,599,765 | $1,425,354 | 12.24% | | Commercial and financial | $1,182,384 | $1,069,356 | 10.57% | | Consumer | $180,416 | $174,175 | 3.58% | | Paycheck Protection Program | $5,294 | $91,107 | -94.18% | | Totals | $6,690,845 | $5,925,029 | 12.92% | - In Q3 2022, **$100 million** in loans to commercial borrowers collateralized by residential properties were reclassified from 'Residential real estate' to 'Commercial real estate - non owner-occupied'[41](index=41&type=chunk) | Metric (in thousands) | Sep 30, 2022 | Dec 31, 2021 | Change (%) | | :-------------------- | :----------- | :----------- | :--------- | | Total Nonaccrual Loans | $21,464 | $30,598 | -29.86% | | Total Collateral-Dependent Loans | $21,333 | $35,716 | -40.27% | - The Company recognized **$0.2 million** and **$1.4 million** in interest income on nonaccrual loans during the three and nine months ended September 30, 2022, respectively[47](index=47&type=chunk) [Note 5 – Allowance for Credit Losses](index=25&type=section&id=Note%205%20%E2%80%93%20Allowance%20for%20Credit%20Losses) The allowance for credit losses increased to **$95.3 million**, driven by loan growth, a negative economic outlook, and Hurricane Ian impacts, with a new discounted cash flow methodology for commercial loans | Metric (in thousands) | Sep 30, 2022 | Dec 31, 2021 | Change (%) | | :-------------------- | :----------- | :----------- | :--------- | | Ending Balance Allowance for Credit Losses | $95,329 | $83,315 | 14.42% | | Metric (in thousands) | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :-------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Provision for Credit Losses | $4,676 | $5,091 | $12,054 | $(5,479) | | Total Charge Offs | $(408) | $(2,052) | $(1,525) | $(4,777) | | Total Recoveries | $305 | $620 | $1,467 | $2,320 | - The allowance increase reflects higher loan balances, a more negative economic outlook, and a **$2.1 million** increase for estimated impacts from Hurricane Ian[62](index=62&type=chunk)[64](index=64&type=chunk) - The Company transitioned to a discounted cash flow methodology for commercial loans and a loss rate methodology for consumer loans for calculating expected credit losses[61](index=61&type=chunk) [Note 6 – Derivatives](index=28&type=section&id=Note%206%20%E2%80%93%20Derivatives) The Company uses back-to-back interest rate swaps (notional **$302.8 million**) and interest rate floor contracts (notional **$300.0 million**) to hedge variable-rate loan risk, with fair value changes recognized in other comprehensive income | Derivative Type | Notional Amount (Sep 30, 2022) | Fair Value (Sep 30, 2022) | Notional Amount (Dec 31, 2021) | Fair Value (Dec 31, 2021) | | :-------------- | :----------------------------- | :------------------------ | :----------------------------- | :------------------------ | | Back-to-back swaps | $302,840 | $24,096 | $175,392 | $8,022 | | Interest rate floors | $300,000 | $20 | $300,000 | $290 | - Back-to-back swaps are used to hedge customer variable-rate loan risk, with offsetting positions to minimize interest rate risk[72](index=72&type=chunk) - Interest rate floor contracts are designated as cash flow hedges to mitigate exposure to variability of future cash flows on variable-rate loans, with changes in fair value recognized in other comprehensive income[73](index=73&type=chunk) [Note 7 – Securities Sold Under Agreements to Repurchase](index=28&type=section&id=Note%207%20%E2%80%93%20Securities%20Sold%20Under%20Agreements%20to%20Repurchase) Securities sold under repurchase agreements are secured borrowings, with **$125.8 million** in pledged mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities | Collateral Type (in thousands) | Sep 30, 2022 | Dec 31, 2021 | | :----------------------------- | :----------- | :----------- | | Mortgage-backed securities and collateralized mortgage obligations of U.S. government sponsored entities | $125,824 | $134,577 | - Securities sold under agreements to repurchase are accounted for as secured borrowings, requiring sufficient collateral[75](index=75&type=chunk) [Note 8 – Equity Capital](index=29&type=section&id=Note%208%20%E2%80%93%20Equity%20Capital) The Company and Seacoast Bank are well-capitalized, exceeding all Basel III regulatory capital thresholds, including the **6.5%** common equity Tier 1 (CET1) capital ratio - The Company and Seacoast Bank exceeded the common equity Tier 1 (CET1) capital ratio regulatory threshold of **6.5%** for well-capitalized institutions under Basel III as of September 30, 2022[76](index=76&type=chunk) [Note 9 – Contingent Liabilities](index=29&type=section&id=Note%209%20%E2%80%93%20Contingent%20Liabilities) The Company faces routine legal actions, but management believes current proceedings will not materially adversely affect financial condition, operating results, or cash flows - Management believes current legal proceedings are not likely to have a materially adverse effect on the Company's consolidated financial condition, operating results, or cash flows[77](index=77&type=chunk) [Note 10 – Fair Value](index=30&type=section&id=Note%2010%20%E2%80%93%20Fair%20Value) Fair value measurements use Level 1, 2, or 3 inputs, with AFS debt securities and derivatives primarily Level 2, while collateral-dependent loans and OREO use Level 3 due to unobservable inputs | Financial Instrument (in thousands) | Fair Value (Sep 30, 2022) | Level 1 | Level 2 | Level 3 | | :-------------------------------- | :------------------------ | :------ | :------ | :------ | | Available-for-sale debt securities | $1,860,734 | $184 | $1,860,550 | $— | | Derivative financial instruments (Assets) | $24,116 | $— | $24,116 | $— | | Loans held for sale | $1,620 | $— | $1,620 | $— | | Loans | $5,990 | $— | $1,262 | $4,728 | | Other real estate owned | $2,419 | $— | $2,419 | $— | | Equity securities | $8,202 | $8,202 | $— | $— | | Derivative financial instruments (Liabilities) | $24,096 | $— | $24,096 | $— | - Fair value of collateral-dependent loans is based on real estate appraisals less estimated costs of sale, using a single or combination of valuation approaches, with capitalization rates as a significant unobservable input (Level 3)[83](index=83&type=chunk) - The fair value of loans is calculated by discounting scheduled cash flows through the estimated life, including prepayment considerations, using estimated market discount rates that reflect inherent risks[90](index=90&type=chunk) [Note 11 – Business Combinations](index=33&type=section&id=Note%2011%20%E2%80%93%20Business%20Combinations) The Company completed multiple acquisitions in 2021-2022, including BBFC, Sabal Palm, Legacy Bank, Apollo Bancshares, and Drummond Banking, expanding its Florida presence, with Professional Holding Corp. proposed for Q1 2023 - On January 3, 2022, the Company acquired Business Bank of Florida, Corp. (BBFC) for **$31.98 million**, issuing **889 thousand** shares of common stock and recognizing **$8.0 million** in goodwill[94](index=94&type=chunk) - On January 3, 2022, the Company acquired Sabal Palm Bancorp, Inc. for **$62.1 million**, issuing **1.66 million** shares of common stock and recognizing **$26.5 million** in goodwill[102](index=102&type=chunk) - On August 6, 2021, the Company acquired Legacy Bank of Florida for **$91.2 million**, issuing **2.69 million** shares of common stock and recognizing **$31.0 million** in goodwill[111](index=111&type=chunk) - On October 7, 2022, the Company completed the acquisitions of Apollo Bancshares, Inc. (**$145.8 million** purchase price) and Drummond Banking Company (**$158.3 million** purchase price), issuing **4.52 million** and **5.14 million** shares of common stock, respectively[121](index=121&type=chunk)[124](index=124&type=chunk) - A proposed acquisition of Professional Holding Corp. was announced on August 8, 2022, expected to close in Q1 2023, further expanding the Company's presence in South Florida[125](index=125&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes the Company's financial condition and results for Q3 and YTD 2022, covering key metrics, business developments, net interest income, noninterest income/expenses, credit quality, liquidity, capital, and critical accounting policies [Special Cautionary Notice Regarding Forward-Looking Statements](index=40&type=section&id=Special%20Cautionary%20Notice%20Regarding%20Forward-Looking%20Statements) Forward-looking statements are subject to risks from economic conditions, regulatory changes, interest rate fluctuations, credit risks, and M&A, with no obligation to update unless legally required - Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors beyond the Company's control[130](index=130&type=chunk) - Key risk factors include future economic and market conditions, government monetary and fiscal policies (including interest rates), changes in accounting policies, borrower credit risks, and the impact of mergers and acquisitions[131](index=131&type=chunk)[134](index=134&type=chunk) - The Company assumes no obligation to update, revise, or correct any forward-looking statements unless required by law[135](index=135&type=chunk) [Business Developments](index=43&type=section&id=Business%20Developments) Seacoast completed Apollo and Drummond acquisitions in October 2022, following earlier 2022 acquisitions, and announced Professional Holding Corp. for Q1 2023, while expanding organically and increasing credit loss provisions due to Hurricane Ian - Completed acquisitions of Apollo Bancshares, Inc. (adding **$718 million** loans, **$857 million** deposits) and Drummond Banking Company (adding **$590 million** loans, **$882 million** deposits) on October 7, 2022[136](index=136&type=chunk)[137](index=137&type=chunk) - Completed acquisitions of Sabal Palm Bancorp, Inc. and Business Bank of Florida, Corp. in Q1 2022, adding **$368 million** loans and **$562 million** deposits[138](index=138&type=chunk) - Proposed acquisition of Professional Holding Corp. announced for Q1 2023 to increase market share in South Florida[139](index=139&type=chunk) - Expanded into Naples/Southwest Florida, Jacksonville/Northeast Florida, and Ocala with new commercial banking teams[140](index=140&type=chunk) - Increased provision for credit losses by **$2.1 million** in Q3 2022 due to estimated impacts from Hurricane Ian[141](index=141&type=chunk) [Results of Operations](index=44&type=section&id=Results%20of%20Operations) Q3 2022 Net Income was **$29.2 million** (**$0.47** diluted EPS), up from Q3 2021, but year-to-date net income decreased 6% to **$82.6 million** due to a **$12.1 million** provision for credit losses | Metric | Q3 2022 | Q2 2022 | Q3 2021 | 9 Months 2022 | 9 Months 2021 | | :----- | :------ | :------ | :------ | :------------ | :------------ | | Net Income (in millions) | $29.2 | $32.8 | $22.9 | $82.6 | $88.1 | | Diluted EPS | $0.47 | $0.53 | $0.40 | $1.33 | $1.56 | - Year-to-date 2022 net income included **$12.1 million** in provision for credit losses, compared to a **$5.5 million** reversal in the prior year[142](index=142&type=chunk) | Metric | Q3 2022 | Q2 2022 | Q3 2021 | 9 Months 2022 | 9 Months 2021 | | :----- | :------ | :------ | :------ | :------------ | :------------ | | Return on average tangible assets | 1.17% | 1.29% | 1.00% | 1.11% | 1.37% | | Return on average tangible shareholders' equity | 11.53% | 13.01% | 9.56% | 10.82% | 12.89% | | Efficiency ratio | 57.13% | 56.22% | 59.55% | 58.45% | 55.99% | [Net Interest Income and Margin](index=44&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income increased 24% year-over-year to **$88.3 million**, with net interest margin (FTE) rising to **3.67%** due to higher yields on securities and non-PPP loans, and low deposit costs | Metric (in thousands) | Q3 2022 | Q2 2022 | Q3 2021 | 9 Months 2022 | 9 Months 2021 | | :-------------------- | :------ | :------ | :------ | :------------ | :------------ | | Net Interest Income | $88,284 | $81,647 | $71,324 | $246,453 | $203,736 | | Net Interest Margin (FTE) | 3.67% | 3.38% | 3.22% | 3.44% | 3.32% | | Yield on Earning Assets (FTE) | 3.80% | 3.46% | 3.31% | 3.53% | 3.42% | | Rate on Interest Bearing Liabilities (FTE) | 0.22% | 0.14% | 0.14% | 0.16% | 0.17% | | Cost of deposits | 0.09% | 0.06% | 0.07% | 0.07% | 0.09% | - Securities yields increased by **38 basis points** to **2.36%** and non-PPP loan yields increased by **sixteen basis points** to **4.43%** in Q3 2022 compared to Q2 2022[144](index=144&type=chunk) - Average loans increased **$127.2 million** (**2%**) quarter-over-quarter and **$903.9 million** (**16%**) year-over-year in Q3 2022[146](index=146&type=chunk) - Commercial loan originations for the nine months ended September 30, 2022, increased **$446.4 million** (**61%**) compared to the prior year, reflecting new bankers and market expansion[149](index=149&type=chunk) - Residential loans originated for sale decreased by **69%** year-over-year for the nine months ended September 30, 2022, due to higher interest rates and limited housing inventory[151](index=151&type=chunk) [Noninterest Income](index=50&type=section&id=Noninterest%20Income) Total noninterest income decreased 15% year-over-year to **$16.1 million** in Q3 2022 and 7% year-to-date to **$48.4 million**, primarily due to lower mortgage banking fees and SBA gains | Metric (in thousands) | Q3 2022 | Q2 2022 | Q3 2021 | 9 Months 2022 | 9 Months 2021 | | :-------------------- | :------ | :------ | :------ | :------------ | :------------ | | Total Noninterest Income | $16,103 | $16,964 | $19,028 | $48,440 | $52,021 | | Service charges on deposit accounts | $3,504 | $3,408 | $2,495 | $9,713 | $7,171 | | Mortgage banking fees | $434 | $932 | $2,550 | $3,052 | $9,752 | | SBA gains | $108 | $473 | $812 | $737 | $1,331 | | BOLI income | $1,363 | $1,349 | $1,128 | $4,046 | $2,859 | - Mortgage banking fees decreased by **83%** year-over-year in Q3 2022 and **69%** year-to-date, reflecting lower saleable production due to higher interest rates and limited housing inventory[166](index=166&type=chunk) - Service charges on deposits increased by **35%** year-to-date, primarily reflecting growth in commercial deposit relationships[163](index=163&type=chunk) - BOLI income increased year-over-year due to **$69.1 million** in additions from acquisitions and purchases during 2021[168](index=168&type=chunk) [Noninterest Expenses](index=51&type=section&id=Noninterest%20Expenses) Total noninterest expense increased 11% year-over-year to **$61.4 million** in Q3 2022, driven by higher salaries, data processing, and occupancy costs, with an adjusted efficiency ratio of **53.28%** | Metric (in thousands) | Q3 2022 | Q2 2022 | Q3 2021 | 9 Months 2022 | 9 Months 2021 | | :-------------------- | :------ | :------ | :------ | :------------ | :------------ | | Total Noninterest Expense | $61,359 | $56,148 | $55,268 | $176,424 | $147,172 | | Salaries and wages | $28,420 | $28,056 | $27,919 | $84,695 | $72,278 | | Outsourced data processing costs | $5,393 | $6,043 | $5,610 | $17,592 | $14,754 | | Occupancy | $5,046 | $4,050 | $3,541 | $13,082 | $10,640 | | Legal and professional fees | $3,794 | $2,946 | $4,151 | $11,529 | $8,915 | | Other expenses | $7,506 | $5,347 | $3,984 | $17,576 | $12,067 | | Metric | Q3 2022 | Q2 2022 | Q3 2021 | 9 Months 2022 | 9 Months 2021 | | :----- | :------ | :------ | :------ | :------------ | :------------ | | Efficiency ratio | 57.13% | 56.22% | 59.55% | 58.45% | 55.99% | | Adjusted efficiency ratio | 53.28% | 53.15% | 51.50% | 53.73% | 52.29% | - Salaries and wages increased due to the addition of seasoned commercial banking teams and expansion of West and Central Florida teams[173](index=173&type=chunk) - Occupancy expenses increased due to the purchase of two previously leased branches, expected to save **$0.3 million** annually[177](index=177&type=chunk) [Provision for Credit Losses](index=53&type=section&id=Provision%20for%20Credit%20Losses) The provision for credit losses was **$4.7 million** for Q3 2022, reflecting loan growth, economic forecast changes, and estimated losses from Hurricane Ian | Metric (in thousands) | Q3 2022 | Q2 2022 | Q3 2021 | | :-------------------- | :------ | :------ | :------ | | Provision for credit losses | $4,676 | $800 | $5,091 | - The Q3 2022 provision included impacts of loan growth, changes in economic forecast factors, and estimated losses from Hurricane Ian[185](index=185&type=chunk) [Income Taxes](index=53&type=section&id=Income%20Taxes) Income tax expense for Q3 2022 was **$9.1 million**, while year-to-date tax expense decreased 8% to **$23.8 million**, primarily due to lower pre-tax income | Metric (in thousands) | Q3 2022 | Q2 2022 | Q3 2021 | 9 Months 2022 | 9 Months 2021 | | :-------------------- | :------ | :------ | :------ | :------------ | :------------ | | Provision for income taxes | $9,115 | $8,886 | $7,049 | $23,835 | $25,991 | - The decrease in year-to-date tax expense is primarily due to lower pre-tax income[186](index=186&type=chunk) [Explanation of Certain Unaudited Non-GAAP Financial Measures](index=54&type=section&id=Explanation%20of%20Certain%20Unaudited%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP and non-GAAP financial measures, which management uses to analyze performance and trends, providing useful supplemental information to investors - Non-GAAP financial measures are used by management for performance analysis, understanding trends, and facilitating comparisons with other financial institutions[187](index=187&type=chunk) - Reconciliations between GAAP and non-GAAP measures are provided, and these disclosures should not be considered an alternative to GAAP[187](index=187&type=chunk) | Metric (in thousands) | Q3 2022 | Q2 2022 | Q3 2021 | 9 Months 2022 | 9 Months 2021 | | :-------------------- | :------ | :------ | :------ | :------------ | :------------ | | Net income, as reported | $29,237 | $32,755 | $22,944 | $82,580 | $88,073 | | Adjusted net income | $32,837 | $36,327 | $29,350 | $96,220 | $98,098 | | Adjusted diluted earnings per share | $0.53 | $0.59 | $0.51 | $1.56 | $1.74 | | Adjusted Efficiency Ratio | 53.28% | 53.15% | 51.50% | 53.73% | 52.29% | [Financial Condition](index=57&type=section&id=Financial%20Condition) Total assets increased 7% to **$10.3 billion**, driven by loan and securities growth, while nonperforming assets decreased 46% to **$23.9 million**, and deposits rose 9% to **$8.8 billion**, with capital ratios remaining strong [Securities](index=57&type=section&id=Securities) The debt securities portfolio grew 15% to **$2.64 billion**, with **$246.7 million** in unrealized losses on AFS securities due to rising rates, not credit quality, and 81% in U.S. Treasury and government obligations | Metric (in thousands) | Sep 30, 2022 | Dec 31, 2021 | Change (%) | | :-------------------- | :----------- | :----------- | :--------- | | Total debt securities portfolio | $2,635,440 | $2,282,959 | 15.44% | | Available-for-sale securities (Fair Value) | $1,860,734 | $1,644,319 | 13.16% | | Held-to-maturity securities (Amortized Cost) | $774,706 | $638,640 | 21.30% | - Available-for-sale securities had gross unrealized losses of **$246.7 million** at September 30, 2022, primarily due to rising interest rates, with no allowance for credit losses recorded as recovery of amortized cost is expected[196](index=196&type=chunk)[202](index=202&type=chunk) - U.S. Treasury and U.S. government agencies and obligations of U.S. government sponsored entities totaled **$2.1 billion**, or **81%**, of the total portfolio[197](index=197&type=chunk) [Loan Portfolio](index=58&type=section&id=Loan%20Portfolio) The loan portfolio grew **$765.8 million** to **$6.7 billion**, driven by acquisitions and a residential loan pool purchase, with annualized organic growth of 7-10% and commercial loan originations up 61% year-over-year | Loan Segment (in thousands) | Sep 30, 2022 | Dec 31, 2021 | Change (%) | | :-------------------------- | :----------- | :----------- | :--------- | | Construction and land development | $361,913 | $230,824 | 56.79% | | Commercial real estate - owner-occupied | $1,253,459 | $1,197,774 | 4.65% | | Commercial real estate - non owner-occupied | $2,107,614 | $1,736,439 | 21.38% | | Residential real estate | $1,599,765 | $1,425,354 | 12.24% | | Commercial and financial | $1,182,384 | $1,069,356 | 10.57% | | Consumer | $180,416 | $174,175 | 3.58% | | Paycheck Protection Program | $5,294 | $91,107 | -94.18% | | Totals | $6,690,845 | $5,925,029 | 12.92% | - Loans, net of unearned income and excluding the allowance for credit losses, were **$6.7 billion** at September 30, 2022, a **$765.8 million** increase from December 31, 2021[203](index=203&type=chunk) - Commercial and commercial real estate loan originations increased by **$446.4 million** (**61%**) for the nine months ended September 30, 2022, compared to the prior year[204](index=204&type=chunk) - Excluding acquisitions, loans grew **7%** on an annualized basis in Q1 and Q2 2022, and **10%** in Q3 2022, with high single-digit growth expected in Q4 2022[203](index=203&type=chunk) [Loan Concentrations](index=60&type=section&id=Loan%20Concentrations) Loan concentrations remain below regulatory limits, with construction and land development at **30%** and total CRE at **191%** of risk-based capital, and **$1.6 billion** in large commercial/CRE relationships, concentrated in Florida | Loan Concentration | Sep 30, 2022 | Dec 31, 2021 | | :----------------- | :----------- | :----------- | | Construction and land development loans as % of subsidiary bank total risk based capital | 30% | 22% | | Total CRE loans as % of subsidiary bank total risk based capital | 191% | 189% | - Commercial and CRE loan relationships greater than **$10 million** totaled **$1.6 billion**, representing **25%** of the total portfolio at September 30, 2022[215](index=215&type=chunk) - The Company has a geographic concentration of credit in Florida[218](index=218&type=chunk) [Nonperforming Loans, Troubled Debt Restructurings, Other Real Estate Owned, and Credit Quality](index=60&type=section&id=Nonperforming%20Loans%2C%20Troubled%20Debt%20Restructurings%2C%20Other%20Real%20Estate%20Owned%2C%20and%20Credit%20Quality) Nonperforming assets decreased 46% to **$23.9 million**, driven by reduced nonaccrual loans and OREO, improving credit quality with nonperforming loans at **0.32%** of total loans, and **$4.1 million** in accruing TDRs | Metric (in thousands) | Sep 30, 2022 | Dec 31, 2021 | Change (%) | | :-------------------- | :----------- | :----------- | :--------- | | Nonperforming Assets (NPAs) | $23,900 | $44,200 | -45.93% | | Nonaccrual loans | $21,500 | $30,600 | -29.90% | | Other real estate owned (OREO) | $2,400 | $13,600 | -82.35% | | Metric | Sep 30, 30, 2022 | Dec 31, 2021 | | :----- | :--------------- | :----------- | | Nonperforming loans to total loans outstanding | 0.32% | 0.52% | | Nonperforming assets to total assets | 0.23% | 0.46% | - Accruing TDRs totaled **$4.1 million** at September 30, 2022, and there was one default totaling **$2 thousand** on a modified TDR loan within the preceding twelve months during the nine months ended September 30, 2022[221](index=221&type=chunk)[223](index=223&type=chunk) [Allowance for Credit Losses on Loans](index=62&type=section&id=Allowance%20for%20Credit%20Losses%20on%20Loans) The allowance for credit losses on loans is estimated using internal and external data, with a **$12.1 million** provision recorded year-to-date, resulting in a **1.42%** ratio of allowance to total loans - The allowance for credit losses is estimated using relevant available information from internal and external sources, considering past events, current conditions, and reasonable and supportable forecasts[226](index=226&type=chunk) - A provision of **$12.1 million** was recorded for the nine months ended September 30, 2022, including **$5.1 million** for loans acquired in BBFC and Sabal Palm acquisitions[227](index=227&type=chunk) | Metric | Sep 30, 2022 | Jun 30, 2022 | Sep 30, 2021 | | :----- | :----------- | :----------- | :----------- | | Ratio of allowance for credit losses to total loans | 1.42% | 1.39% | 1.49% | | Ratio of allowance for credit losses to total loans (excluding PPP) | 1.43% | 1.39% | 1.54% | [LIBOR Transition](index=62&type=section&id=LIBOR%20Transition) The Company ceased new LIBOR loans by December 31, 2021, and is transitioning **$202 million** in existing LIBOR-tied loans and derivatives to alternative reference rates, monitoring regulatory activity - The Company ceased issuance of new LIBOR loans as of December 31, 2021[230](index=230&type=chunk) - As of September 30, 2022, approximately **$202 million** in existing loans have repricing indices tied to LIBOR[230](index=230&type=chunk) - The Company is executing its LIBOR transition program and monitoring regulatory activity to facilitate the transition to alternative reference rates for loans, swap agreements, and other derivatives[229](index=229&type=chunk)[230](index=230&type=chunk) [Cash and Cash Equivalents and Liquidity Risk Management](index=62&type=section&id=Cash%20and%20Cash%20Equivalents%20and%20Liquidity%20Risk%20Management) Cash and cash equivalents decreased to **$218.6 million** due to investments and loan growth, but the Company manages liquidity through diverse funding sources and substantial unsecured and secured lines of credit | Metric (in thousands) | Sep 30, 2022 | Dec 31, 2021 | Change (%) | | :-------------------- | :----------- | :----------- | :--------- | | Cash and cash equivalents | $218,615 | $737,729 | -70.36% | - Funding sources include customer-based deposits, collateral-backed borrowings, brokered deposits, and cash flows from operations, loans, and investments[232](index=232&type=chunk) - At September 30, 2022, the Company had available unsecured lines of credit of **$165.0 million** and secured lines of credit of **$2.1 billion**[238](index=238&type=chunk) [Deposits and Borrowings](index=64&type=section&id=Deposits%20and%20Borrowings) Total deposits increased 9% to **$8.8 billion**, driven by organic growth and acquisitions, with noninterest demand deposits at **40%** of the total, and subordinated debt stable at **$71.9 million** | Deposit Type (in thousands) | Sep 30, 2022 | Dec 31, 2021 | Change (%) | | :-------------------------- | :----------- | :----------- | :--------- | | Noninterest demand | $3,529,489 | $3,075,534 | 14.76% | | Interest-bearing demand | $2,170,251 | $1,890,212 | 14.81% | | Money market | $1,700,737 | $1,651,881 | 2.96% | | Savings | $938,081 | $895,019 | 4.81% | | Time certificates of deposit | $426,856 | $554,943 | -23.08% | | Total deposits | $8,765,414 | $8,067,589 | 8.65% | | Noninterest demand deposits as % of total deposits | 40% | 38% | 5.26% | - Total deposits increased by **$697.8 million** (**9%**) to **$8.8 billion** at September 30, 2022, reflecting organic growth and acquisitions[241](index=241&type=chunk) - Subordinated debt was **$71.9 million** at September 30, 2022, with a weighted average interest rate of **3.40%** for the nine months ended September 30, 2022[244](index=244&type=chunk)[245](index=245&type=chunk) [Off-Balance Sheet Transactions](index=65&type=section&id=Off-Balance%20Sheet%20Transactions) Off-balance sheet lending commitments, primarily unfunded loan commitments and letters of credit, totaled **$2.5 billion**, with most expiring unfunded, not representing actual future credit exposure or liquidity requirements | Metric (in billions) | Sep 30, 2022 | Dec 31, 2021 | Change (%) | | :------------------- | :----------- | :----------- | :--------- | | Loan commitments | $2.5 | $2.0 | 25.00% | - A large majority of loan commitments and standby letters of credit expire without being funded, so total contractual amounts are not representative of actual future credit exposure or liquidity requirements[247](index=247&type=chunk) [Capital Resources](index=65&type=section&id=Capital%20Resources) Equity capital decreased 2% to **$1.3 billion** due to a **$180.2 million** drop in AOCI from rising rates, but capital ratios remain well above regulatory minimums, with a **17.48%** total risk-based capital ratio | Metric (in thousands) | Sep 30, 2022 | Dec 31, 2021 | Change (%) | | :-------------------- | :----------- | :----------- | :--------- | | Ending balance at September 30, 2022 and December 31, 2021 | $1,287,802 | $1,310,736 | -1.75% | | Change in accumulated other comprehensive income | $(180,220) | $(15,101) | 1099.00% | | Capital Ratio | Seacoast (Consolidated) | Seacoast Bank | Minimum to be Well Capitalized | | :------------ | :---------------------- | :------------ | :----------------------------- | | Total Risk-Based Capital Ratio | 17.48% | 16.04% | 10.00% | | Tier 1 Capital Ratio | 16.51% | 15.08% | 8.00% | | Common Equity Tier 1 Ratio (CET1) | 15.58% | 15.08% | 6.50% | | Leverage Ratio | 12.08% | 11.03% | 5.00% | - The Company believes its **$71.9 million** of trust preferred securities qualify as Tier 1 capital under Basel III guidelines[257](index=257&type=chunk) [Critical Accounting Policies and Estimates](index=67&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Critical accounting policies involve significant judgments and estimates for credit losses (CECL), acquisition accounting, intangible assets, fair value measurements, debt securities impairment, and contingent liabilities, which can materially affect financial reporting - Critical accounting estimates include the allowance for credit losses, acquisition accounting, intangible assets and impairment testing, other fair value measurements, impairment of debt securities, and contingent liabilities[262](index=262&type=chunk) - The CECL methodology for allowance for credit losses uses discounted cash flow for commercial loans and loss rate for consumer loans, applying economic forecasts and reverting to historical data when forecasts are no longer supportable[261](index=261&type=chunk)[262](index=262&type=chunk) - Acquired assets and assumed liabilities are recorded at fair value, with fair value estimates for acquired loans including expected prepayments and cash flows[270](index=270&type=chunk) - Goodwill is evaluated for impairment annually, and core deposit intangibles are amortized on a straight-line basis and evaluated for impairment at least annually[272](index=272&type=chunk) [Interest Rate Sensitivity](index=70&type=section&id=Interest%20Rate%20Sensitivity) The Company manages interest rate risk via simulation modeling, projecting a positive impact on net interest income in rising rate scenarios, with a **24.5%** positive cumulative interest rate sensitivity gap for the next 12 months - Interest rate risk is managed using simulation modeling to optimize financial position, liquidity, and net interest income while limiting volatility[281](index=281&type=chunk) | Change in Interest Rates | % Change in Projected Baseline Net Interest Income (1-12 months) | % Change in Projected Baseline Net Interest Income (13-24 months) | | :----------------------- | :--------------------------------------------------------------- | :---------------------------------------------------------------- | | +2.00% | 9.6% | 13.4% | | +1.00% | 4.8% | 6.6% | | Current | —% | —% | | -1.00% | (5.9%) | (9.2%) | - The Company had a positive cumulative interest rate sensitivity gap as a percentage of total earning assets of **24.5%** at September 30, 2022, for the next 12 months[285](index=285&type=chunk) [Effects of Inflation and Changing Prices](index=70&type=section&id=Effects%20of%20Inflation%20and%20Changing%20Prices) Inflation primarily impacts financial institutions through interest rates, increasing operating costs and, with rising rates, decreasing investment and loan market values, potentially affecting liquidity, earnings, equity, and mortgage originations - Interest rates have a more significant impact on a financial institution's performance than the general level of inflation[288](index=288&type=chunk) - Inflation increases costs of goods and services, salaries, benefits, and occupancy expenses[288](index=288&type=chunk) - Inflation and rising interest rates generally decrease the market value of investments and loans, potentially adversely affecting liquidity, earnings, and shareholders' equity, and slowing mortgage originations[288](index=288&type=chunk)[289](index=289&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=72&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The Company's primary market risk is interest rate risk, managed by ALCO through simulation analysis, monitoring impacts on net interest income and Economic Value of Equity (EVE), projecting a positive impact in rising rate scenarios - Interest rate risk is the Company's primary market risk, managed by the ALCO through policies and simulation analysis[291](index=291&type=chunk) - The ALCO uses simulation analysis to monitor changes in net interest income and Economic Value of Equity (EVE) due to changes in market interest rates[292](index=292&type=chunk) | Change in Interest Rates | % Change in Economic Value of Equity | | :----------------------- | :----------------------------------- | | +2.00% | 6.9% | | +1.00% | 3.9% | | Current | —% | | -1.00% | (6.6%) | [Item 4. Controls and Procedures](index=72&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2022, with no material changes in internal control over financial reporting during the quarter - Disclosure controls and procedures were evaluated as effective as of September 30, 2022[298](index=298&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended September 30, 2022[299](index=299&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=73&type=section&id=Item%201.%20Legal%20Proceedings) The Company is routinely involved in legal actions, but management believes current proceedings will not materially adversely affect financial position, operating results, or cash flows - Management believes current legal proceedings are not likely to have a materially adverse effect on the Company's consolidated financial position, operating results, or cash flows[300](index=300&type=chunk) [Item 1A. Risk Factors](index=73&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2021, but investors should consider all potential risks - No material changes have occurred with respect to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2021[301](index=301&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company repurchased **43,676** common shares at an average price of **$34.35** for tax withholding related to stock awards, not under the **$100 million** share repurchase program | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :----- | :----------------------------- | :--------------------------- | | 1/1/22 to 1/31/22 | 940 | $35.39 | | 4/1/22 to 4/30/22 | 39,489 | $34.34 | | 7/1/22 to 7/31/22 | 3,247 | $34.28 | | Total - 9 Months | 43,676 | $34.35 (approx. weighted avg) | - Shares purchased were to satisfy tax withholding related to stock options and vesting of share-based awards[302](index=302&type=chunk) - As of September 30, 2022, no shares had been repurchased under the **$100 million** share repurchase program authorized on December 15, 2021[304](index=304&type=chunk) [Item 3. Defaults upon Senior Securities](index=75&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) No defaults upon senior securities occurred during the reported period - None[305](index=305&type=chunk) [Item 4. Mine Safety Disclosures](index=75&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) No mine safety disclosures were required for the reported period - None[306](index=306&type=chunk) [Item 5. Other Information](index=75&type=section&id=Item%205.%20Other%20Information) No other information was reported in this section - None[307](index=307&type=chunk) [Item 6. Exhibits](index=76&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including merger agreements, corporate documents, CEO/CFO certifications, and XBRL financial statements - Includes merger agreements for Apollo Bancshares, Inc., Drummond Banking Company, and Professional Holding Corp[309](index=309&type=chunk)[310](index=310&type=chunk) - Includes Amended and Restated Articles of Incorporation and By-laws[311](index=311&type=chunk)[316](index=316&type=chunk) - Includes Certifications of the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[317](index=317&type=chunk)[320](index=320&type=chunk) [Signatures](index=78&type=section&id=SIGNATURES) The report was signed on November 4, 2022, by Charles M. Shaffer, Chairman and CEO, and Tracey L. Dexter, EVP and CFO, for Seacoast Banking Corporation of Florida - The report was signed by Charles M. Shaffer, Chairman and CEO, and Tracey L. Dexter, EVP and CFO, on November 4, 2022[323](index=323&type=chunk)

Seacoast Banking Corporation of Florida (NASDAQ:SBCF) Q3 2022 Earnings Conference Call October 28, 2022 10:00 AM ET Company Participants Chuck Shaffer - Chairman, President and CEO Tracey Dexter - EVP and CFO Jeffery Lee - EVP & CDO Michael Young - Treasurer and Director of Investor Relations. Conference Call Participants Brandon King - Truist Securities Stephen Scouten - Piper Sandler Brady Gailey - KBW David Feaster - Raymond James David Bishop - Hovde Group Operator Welcome to Seacoast Banking Corporatio ...

| --- | --- | |-------|-------| | | | | | | | | | | | | | EARNINGS PRESENTATION | | | THIRD QUARTER 2022 | 2022 | Cautionary Notice Regarding Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning, and protections, of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, cost savings, enhanced revenues, economic and seasonal condit ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to __________________. Commission File No. 0-13660 Seacoast Banking Corporation of Florida (Exact Name of Registrant as Specified in its Charter) ...

P Professional Holding Corp SECOND QUARTER 2022 EARNINGS PRESENTATION NASDAQ:PFHD FORWARD LOOKING STATEMENTS "This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements contained in this presentation that are not statements of historical fact may be deemed to be forward-looking statements, including, without limitation, statements preceded by, followed by or including words such as "anticipate," "intend," "believe," "esti ...