Seacoast Banking of Florida(SBCF) - 2024 Q3 - Quarterly Report

Financial Performance - Net income for Q3 2024 was $30.7 million, or$0.36 per average diluted share, a 1% increase from the prior quarter [136]. - Adjusted net income for the nine months ended September 30, 2024, was $91.9 million, compared to$101.9 million for the same period in 2023 [141]. - Net income for Q3 2024 was $30,651,000, a slight increase from$30,244,000 in Q2 2024 but a decrease from $31,414,000 in Q3 2023 [181]. - Adjusted net income for Q3 2024 was$30,511,000, compared to $30,277,000 in Q2 2024 and$34,170,000 in Q3 2023, reflecting a decrease of 10.3% year-over-year [181]. - Earnings per diluted share remained stable at $0.36 in Q3 2024, consistent with Q2 2024, but down from$0.37 in Q3 2023 [181]. Loan and Deposit Growth - Loans grew 6.6% on an annualized basis to $10.2 billion, with a strong loan pipeline of$831.1 million [137]. - Customer deposits increased by $195.9 million, or 6.6$123.7 million, or 1%, in Q3 2024 compared to Q2 2024, and by $85.2 million, or 1$466.7 million, or 4.0%, to $12.2 billion at September 30, 2024, compared to December 31, 2023 [234]. - The loan portfolio totaled$10.2 billion, reflecting an increase of $142.3 million, or 1.4$106.7 million, a 2% increase from Q2 2024, but an 11% decrease from Q3 2023 [143]. - Net interest margin was 3.17%, nearly flat compared to 3.18% in the prior quarter [138]. - The yield on loans increased to 5.94% in Q3 2024, unchanged from Q2 2024 and Q3 2023 [144]. - Net interest income for Q3 2024 was $107.0 million, a 2$23.7 million, representing a 33% year-over-year increase compared to Q3 2023 [138]. - Noninterest income totaled $23.7 million for Q3 2024, a 7$5.4 million in Q3 2024, up 17% from $4.6 million in Q3 2023 [160]. - Wealth management income rose to$3.8 million in Q3 2024, a 22.6% increase from $3.1 million in Q3 2023, with assets under management growing by$276.5 million to $2.0 billion [162]. - Other income reached$7.5 million in Q3 2024, a 74% increase from $4.3 million in Q3 2023 [165]. Expenses and Efficiency - Noninterest expenses for Q3 2024 totaled$84.8 million, a 3% increase from Q2 2024, but a 10% decrease from Q3 2023 [169]. - The efficiency ratio improved to 59.84% in Q3 2024 from 62.60% in Q3 2023 [142]. - Salaries and wages in Q3 2024 were $40.7 million, a 14$46.4 million in Q3 2023, reflecting a workforce reduction [170]. - Total noninterest expense was $84,818,000 in Q3 2024, up from$82,537,000 in Q2 2024 but down from $93,915,000 in Q3 2023, showing a year-over-year decrease of 9.7$2,168,444 thousand, reflecting a solid capital position [157]. - The allowance for credit losses decreased to $141,974 thousand from$146,380 thousand in the previous quarter [157]. - The ratio of nonperforming loans to total loans outstanding increased to 0.79% at September 30, 2024, up from 0.65% at December 31, 2023 [215]. - The allowance for credit losses to total loans ratio was 1.38% at September 30, 2024, down from 1.47% at December 31, 2023 [223]. Risk Management - Interest rate risk is the primary market risk for the Company, managed through simulation modeling and regular reviews by senior management [263]. - The ALCO regularly reviews the interest rate sensitivity position and establishes policies to monitor and limit exposure to interest rate risk [263]. - The Economic Value of Equity (EVE) is sensitive to interest rate changes, with a +2.00% change resulting in a decrease of 14.3% in equity [268]. - The company reassesses assumptions regarding the indeterminate lives of core deposits using independent third-party resources [265]. - Legal proceedings currently faced by the company are not expected to materially affect its consolidated financial position or operating results [272].