Seacoast Banking of Florida(US:SBCF)2025-05-07 20:54Financial Performance - Net income for the first quarter of 2025 was $31.5 million, or $0.37 per diluted share, representing a decrease of 8% from the previous quarter but an increase of 21% year-over-year[97]. - Net income for Q1 2025 was $31.464 million, down from $34.085 million in Q4 2024 but up from $26.006 million in Q1 2024[127]. - The Company reported net income of $31.464 million for the three months ended March 31, 2025, compared to $26.006 million for the same period in 2024, reflecting an increase of approximately 21.2%[189]. - Noninterest income totaled $22.2 million for Q1 2025, an increase of $5.1 million, or 30%, from Q4 2024 and an increase of $1.7 million, or 8%, from Q1 2024[111]. - Total noninterest income for Q1 2025 was $22.180 million, compared to $17.068 million in Q4 2024 and $20.497 million in Q1 2024[127]. Deposits and Loans - Total deposits grew by $332.4 million, or 11.0% annualized, in the first quarter of 2025[95]. - Average loans increased by $169.0 million, or 2%, compared to the fourth quarter of 2024, and by $348.8 million, or 3%, year-over-year[101]. - Noninterest bearing deposits grew by $140.1 million, or 17.0% annualized, in the first quarter of 2025[100]. - Average transaction deposits increased by $0.9 million from Q4 2024 and by $247.6 million, or 4%, from Q1 2024, with 87% of average deposit balances in savings, money market, and demand deposits[105]. - Total deposits increased by $332.4 million, or 11% annualized, to $12.6 billion at March 31, 2025 compared to December 31, 2024[175]. Interest Income and Margin - Net interest income increased to $118.5 million, up $2.7 million, or 2%, from the previous quarter, and up $13.4 million, or 13%, year-over-year[98]. - Net interest margin rose to 3.48%, an increase of nine basis points from the prior quarter[99]. - The cost of deposits declined by 15 basis points to 1.93% in the first quarter of 2025[100]. - The average rate on customer sweep repurchase accounts was 2.73% in Q1 2025, down from 3.00% in Q4 2024 and 3.71% in Q1 2024[106]. Capital and Equity - The Tier 1 capital ratio stood at 14.7%, indicating a strong capital position[100]. - Tangible book value per share increased by 10% year-over-year to $16.71[100]. - The Company's equity capital increased by $46.5 million, or 2%, to $2.2 billion as of March 31, 2025, compared to December 31, 2024[187]. - The ratio of shareholders' equity to total assets was 14.17% at March 31, 2025, down from 14.39% at December 31, 2024[188]. - The total risk-based capital ratio was 16.15% for the Company as of March 31, 2025, well above the regulatory minimum of 10.00%[191]. Expenses - Noninterest expense for Q1 2025 totaled $90.6 million, an increase of $5.0 million, or 6%, from Q4 2024 and a slight increase from Q1 2024[117]. - Employee benefits increased to $8.9 million in Q1 2025, up $2.3 million or 35% from Q4 2024, and up $1.0 million or 12% from Q1 2024[118]. - Total occupancy and furniture and equipment expenses were $9.5 million in Q1 2025, slightly up from $9.2 million in Q4 2024 and down from $10.0 million in Q1 2024[120]. Asset Management - Total assets reached $15.4 billion in Q1 2025, compared to $15.2 billion in Q4 2024 and $14.7 billion in Q1 2024[110]. - Cash and cash equivalents totaled $500.6 million at March 31, 2025, compared to $476.6 million at December 31, 2024[169]. - The Company holds $2.9 billion, or 88% of its total portfolio, in U.S. Treasury securities and obligations of U.S. government agencies[134]. - The Company has $265.5 million invested in floating rate CLOs, all in AAA/AA tranches with a weighted-average credit support of 32%[136]. Loan Portfolio - As of March 31, 2025, the Company reported a loan portfolio of $10.4 billion, reflecting an increase of $143.1 million, or 5.6% annualized, from December 31, 2024[140]. - Residential real estate loans increased by $36.2 million to $2.7 billion during the three months ended March 31, 2025[147]. - Commercial real estate non-owner occupied loans totaled $3.5 billion at March 31, 2025, with the largest segment being retail properties at approximately $1.2 billion[146]. - The commercial/commercial real estate loan pipeline was $884.9 million as of March 31, 2025, an increase of $279.5 million, or 46%, from December 31, 2024[151]. Credit Quality - Provision for credit losses rose to $9.3 million in Q1 2025, compared to $3.7 million in Q4 2024 and $1.4 million in Q1 2024, reflecting higher loan growth[123]. - Nonperforming assets (NPAs) decreased by $20.7 million, or 21%, to $78.2 million as of March 31, 2025, with NPAs to total assets decreasing to 0.50% from 0.65%[159]. - The ratio of allowance for credit losses to total loans was 1.34% at March 31, 2025, unchanged from December 31, 2024[166]. - Nonaccrual loans decreased by $21.4 million, or 23%, to $71.0 million at March 31, 2025[160]. Strategic Initiatives - The Company announced a proposed acquisition of Heartland Bancshares, Inc., expected to close in Q3 2025, expanding its presence in Central Florida[92]. - The company added 10 revenue-producing bankers during Q1 2025, reflecting successful recruitment efforts[117]. - The Company has maintained a quarterly dividend of $0.18 per share since the second quarter of 2021, subject to the discretion of the Board of Directors[193]. Economic Outlook - The projected impact of a +3.00% change in interest rates is a decrease of 17.5% in projected baseline net interest income over the next 12 months[199]. - The economic value of equity is projected to decrease by 27.2% with a +3.00% change in interest rates[207].