Seacoast Banking of Florida(SBCF) - 2025 Q2 - Quarterly Results

Q2 2025 Earnings Overview Seacoast Banking Corporation of Florida reported strong second-quarter 2025 results, with significant increases in net income, net interest margin, and key profitability ratios. The company also highlighted strategic acquisitions aimed at expanding its footprint in key growth markets Executive Summary Seacoast Banking Corporation of Florida reported strong second-quarter 2025 results, with significant increases in net income, net interest margin, and key profitability ratios. The company also highlighted strategic acquisitions aimed at expanding its footprint in key growth markets Key Financial Metrics | Metric | Q2 2025 | Q1 2025 | Q2 2024 | YoY Change | QoQ Change | | :-------------------------------- | :------ | :------ | :------ | :--------- | :--------- | | Net Income (GAAP, $M) | $42.7 | $31.5 | $30.2 | +41.4% | +35.6% | | Diluted EPS (GAAP) | $0.50 | $0.37 | $0.36 | +38.9% | +35.1% | | Adjusted Net Income ($M) | $44.5 | $32.1 | $30.3 | +46.9% | +38.6% | | Adjusted Diluted EPS | $0.52 | $0.38 | $0.36 | +44.4% | +36.8% | | Net Interest Margin | 3.58% | 3.48% | 3.18% | +40 bps | +10 bps | | Return on Average Tangible Assets | 1.24% | 0.98% | 1.00% | +24 bps | +26 bps | | Return on Average Tangible Common Equity | 12.82% | 10.17% | 10.75% | +207 bps | +265 bps | - CEO Charles M. Shaffer highlighted the strength and momentum of the franchise, attributing the expansion in net interest margin to disciplined execution and strategic focus, consistent high-quality loan growth, and well-managed deposit costs. He also noted the continued expansion of fee-based revenue businesses and controlled expenses[2] - Seacoast is set to welcome two seasoned, high-performing franchises, Heartland Bancshares, Inc. and Villages Bancorporation, Inc., in the second half of the year. These acquisitions are expected to be transformative, expanding the company's footprint in key growth markets across Central Florida and The Villages®[2] Acquisitions Update Seacoast completed the acquisition of Heartland Bancshares, Inc. in July 2025 and announced the proposed acquisition of Villages Bancorporation, Inc., expected to close in Q4 2025, significantly expanding its loan and deposit base and market presence - The acquisition of Heartland Bancshares, Inc. was completed on July 11, 2025, adding approximately $157 million in loans, $684 million in deposits, and four branches in Central Florida for a total consideration of $111.2 million (50% cash, 50% stock)[4] - The proposed acquisition of Villages Bancorporation, Inc. was announced on May 29, 2025, and is expected to close in Q4 2025. This transaction will add approximately $1.3 billion in loans and $3.5 billion in deposits (as of June 30, 2025) and 19 branches, expanding Seacoast's presence in North Central Florida and The Villages community[5] Detailed Financial Results This section provides an in-depth analysis of Seacoast's financial performance, covering income statement, balance sheet, asset quality, capital, liquidity, and efficiency metrics for the quarter Overall Financial Performance Highlights | Metric | Q2 2025 ($M) | Q1 2025 ($M) | Q2 2024 ($M) | QoQ Change | YoY Change | | :-------------------------------- | :----------- | :----------- | :----------- | :--------- | :--------- | | Net Income (GAAP) | $42.7 | $31.5 | $30.2 | +35.6% | +41.4% | | Adjusted Net Income | $44.5 | $32.1 | $30.3 | +38.6% | +46.9% | | Net Revenues | $151.4 | $140.7 | $126.6 | +7.6% | +19.6% | | Adjusted Net Revenues | $151.8 | $140.9 | $126.9 | +7.7% | +19.6% | | Pre-tax pre-provision earnings | $60.2 | $50.6 | $44.6 | +19.0% | +35.0% | | Adjusted pre-tax pre-provision earnings | $62.6 | $51.7 | $44.5 | +21.1% | +40.7% | - Net interest income increased by $8.3 million (7%) QoQ and $22.4 million (21%) YoY, primarily due to higher securities and loan interest income. Securities income rose 11% from purchases, and loan interest income increased $6.4 million from strong production and higher accretion on acquired loans[7] - The cost of deposits decreased by $3.0 million (7%) QoQ and $10.7 million (21%) YoY, reflecting a lower cost of deposits. However, interest expense on borrowed money increased by $3.6 million (50%) QoQ and $4.6 million (75%) YoY, mainly due to higher short-term borrowings for strategic securities purchases[7] Income Statement Analysis Seacoast's income statement for Q2 2025 showed robust growth across key metrics, driven by increased net interest income from higher securities and loan interest, and a decrease in deposit costs. Noninterest income also saw an increase, partially due to a one-time tax refund Net Income and Earnings Per Share Net income and diluted EPS saw substantial year-over-year and quarter-over-quarter growth, reflecting strong operational performance and strategic execution Net Income and Diluted EPS Performance | Metric | Q2 2025 | Q1 2025 | Q2 2024 | YoY Change | QoQ Change | | :------------------- | :------ | :------ | :------ | :--------- | :--------- | | Net Income ($M) | $42.7 | $31.5 | $30.2 | +41.4% | +35.6% | | Diluted EPS | $0.50 | $0.37 | $0.36 | +38.9% | +35.1% | | Adjusted Net Income ($M) | $44.5 | $32.1 | $30.3 | +46.9% | +38.6% | | Adjusted Diluted EPS | $0.52 | $0.38 | $0.36 | +44.4% | +36.8% | Net Revenues Net revenues and adjusted net revenues demonstrated solid growth both quarter-over-quarter and year-over-year, indicating strong top-line performance Net Revenues Overview | Metric | Q2 2025 ($M) | Q1 2025 ($M) | Q2 2024 ($M) | QoQ Change | YoY Change | | :----------- | :----------- | :----------- | :----------- | :--------- | :--------- | | Net Revenues | $151.4 | $140.7 | $126.6 | +7.6% | +19.6% | | Adjusted Net Revenues | $151.8 | $140.9 | $126.9 | +7.7% | +19.6% | Net Interest Income and Margin Net interest income and net interest margin expanded significantly, driven by higher loan and securities yields and a reduction in the cost of deposits Net Interest Income and Margin Trends | Metric | Q2 2025 | Q1 2025 | Q2 2024 | QoQ Change | YoY Change | | :-------------------------------- | :------ | :------ | :------ | :--------- | :--------- | | Net Interest Income ($M) | $126.9 | $118.5 | $104.4 | +7.1% | +21.5% | | Net Interest Margin | 3.58% | 3.48% | 3.18% | +10 bps | +40 bps | | Net Interest Margin (excl. accretion) | 3.29% | 3.24% | N/A | +5 bps | N/A |\ | Loan Yields | 5.98% | 5.90% | N/A | +8 bps | N/A | | Securities Yields | 3.87% | 3.88% | N/A | -1 bps | N/A | | Cost of Deposits | 1.80% | 1.93% | N/A | -13 bps | N/A | Provision for Credit Losses Provision for credit losses decreased significantly quarter-over-quarter and year-over-year, while allowance coverage remained stable Provision for Credit Losses and Coverage | Metric | Q2 2025 ($M) | Q1 2025 ($M) | Q2 2024 ($M) | QoQ Change | YoY Change | | :------------------------ | :----------- | :----------- | :----------- | :--------- | :--------- | | Provision for Credit Losses | $4.4 | $9.3 | $4.9 | -52.7% | -10.2% | | Allowance Coverage | 1.34% | 1.34% | N/A | 0 bps | N/A | Noninterest Income Breakdown Total noninterest income increased, primarily boosted by a one-time death benefit payout and tax refunds, alongside growth in service charges and wealth management Noninterest Income Categories | Noninterest Income Category | Q2 2025 ($M) | Q1 2025 ($M) | Q2 2024 ($M) | QoQ Change | YoY Change | | :-------------------------- | :----------- | :----------- | :----------- | :--------- | :--------- | | Total Noninterest Income | $24.5 | $22.2 | $22.2 | +10.4% | +10.4% | | Service charges on deposits | $5.5 | $5.2 | $5.3 | +5.8% | +3.8% | | Wealth management income | $4.2 | $4.2 | $3.8 | -0.0% | +10.5% | | Mortgage banking fees | $0.7 | $0.4 | $0.6 | +75.0% | +16.7% | | Insurance agency income | $1.3 | $1.6 | $1.4 | -18.8% | -7.1% | | BOLI income | $3.4 | $2.5 | $2.6 | +36.0% | +30.8% | | Other income | $7.5 | $6.3 | $6.6 | +19.0% | +13.6% | - The increase in BOLI income was primarily due to a $0.9 million death benefit payout. Other income included $3.0 million in tax refunds related to a prior bank acquisition, partially offset by lower gains on SBA loan sales and SBIC investments[8] Noninterest Expense Breakdown Total noninterest expense saw a modest increase, driven by higher salaries and merger-related charges, partially offset by a decrease in employee benefits Noninterest Expense Categories | Noninterest Expense Category | Q2 2025 ($M) | Q1 2025 ($M) | Q2 2024 ($M) | QoQ Change | YoY Change | | :--------------------------- | :----------- | :----------- | :----------- | :--------- | :--------- | | Total Noninterest Expense | $91.7 | $90.6 | $82.5 | +1.2% | +11.1% | | Salaries and wages | $44.4 | $42.2 | $38.9 | +5.2% | +14.1% | | Employee benefits | $8.1 | $8.9 | $6.9 | -9.0% | +17.4% | | Outsourced data processing | $8.5 | $8.5 | $8.2 | 0.0% | +3.7% | | Occupancy costs | $7.5 | $7.4 | $7.2 | +1.4% | +4.2% | | Marketing expenses | $3.0 | $2.7 | $3.3 | +11.1% | -9.1% | | Legal and professional fees | $2.1 | $2.7 | $2.0 | -22.2% | +5.0% | | Merger-related charges | $2.4 | $1.1 | $0.0 | +118.2% | N/A | - Salaries and wages increased primarily due to higher performance-driven incentive compensation. Employee benefits decreased QoQ due to seasonal factors. Merger-related charges significantly increased QoQ due to ongoing acquisition activities[8][10] Balance Sheet Analysis Seacoast's balance sheet as of June 30, 2025, reflects continued asset growth, particularly in debt securities and loans, alongside a slight decrease in total deposits. The company maintains a disciplined approach to lending and deposit management Balance Sheet Key Metrics | Metric | June 30, 2025 ($B) | March 31, 2025 ($B) | June 30, 2024 ($B) | QoQ Change | YoY Change | | :-------------------------- | :----------------- | :------------------ | :----------------- | :--------- | :--------- | | Total Assets | $15.9 | $15.7 | $15.0 | +1.3% | +6.0% | | Total Shareholders' Equity | $2.3 | $2.2 | $2.1 | +4.5% | +9.5% | | Book Value Per Share | $26.43 | $26.04 | $24.98 | +1.5% | +5.8% | | Tangible Book Value Per Share | $17.19 | $16.71 | $15.41 | +2.9% | +11.5% | | Debt Securities | $3.5 | $3.3 | $2.6 | +6.1% | +34.6% | | Total Loans | $10.6 | $10.4 | $10.0 | +1.9% | +6.0% | | Total Deposits | $12.5 | $12.6 | $12.1 | -0.6% | +3.3% | Assets Overview Total assets grew, primarily driven by strategic investments in debt securities funded by short-term borrowings, with unrealized losses on AFS securities fully reflected Asset Composition | Metric | June 30, 2025 ($B) | March 31, 2025 ($B) | June 30, 2024 ($B) | QoQ Change | YoY Change | | :-------------------------- | :----------------- | :------------------ | :----------------- | :--------- | :--------- | | Total Assets | $15.9 | $15.7 | $15.0 | +1.3% | +6.0% | | Debt Securities | $3.5 | $3.3 | $2.6 | +6.1% | +34.6% | | Securities available-for-sale | $2.9 | $2.6 | $2.0 | +11.5% | +45.0% | | Securities held-to-maturity | $0.6 | $0.6 | $0.7 | -0.0% | -14.3% | - Strategic purchases of debt securities in the first half of 2025 were funded with short-term FHLB borrowings. The unrealized loss on available-for-sale securities is fully reflected on the balance sheet, and held-to-maturity securities are expected to recover price depreciation over their holding period[10] Loans and Loan Pipelines Total loans continued to grow with a disciplined lending approach, while loan pipelines, though down QoQ, remained strong YoY, supported by talent investments Loan Portfolio and Pipeline | Metric | June 30, 2025 ($B) | March 31, 2025 ($B) | June 30, 2024 ($B) | QoQ Change | YoY Change | | :-------------------- | :----------------- | :------------------ | :----------------- | :--------- | :--------- | | Total Loans | $10.6 | $10.4 | $10.0 | +1.9% | +6.0% | | Loan Growth (annualized) | 6.4% | N/A | N/A | N/A | N/A | | Total Loan Pipelines | $920.9M | $981.6M | $834.4M | -6.2% | +10.4% | | Commercial Pipelines | $861.2M | $904.1M | $773.1M | -4.7% | +11.4% | - The company continues to apply a disciplined approach to lending, benefiting from investments in talent to attract business from larger banks. While total loan pipelines decreased QoQ, they remain strong YoY[10] Deposits and Funding Total deposits saw a slight decrease, but the company maintains a granular deposit franchise with a low cost of deposits, supplemented by increased FHLB advances Deposits and Funding Sources | Metric | June 30, 2025 ($B) | March 31, 2025 ($B) | June 30, 2024 ($B) | QoQ Change | YoY Change | | :-------------------- | :----------------- | :------------------ | :----------------- | :--------- | :--------- | | Total Deposits | $12.5 | $12.6 | $12.1 | -0.6% | +3.3% | | Deposit Decline (annualized) | 2.5% | N/A | N/A | N/A | N/A | | Cost of Deposits | 1.80% | 1.93% | N/A | -13 bps | N/A | | Customer Transaction Accounts (% of total deposits) | 47% | N/A | N/A | N/A | N/A | | FHLB Advances | $715.0M | $465.0M | N/A | +53.8% | N/A | - The company benefits from a granular deposit franchise, with the top ten depositors representing approximately 3% of total deposits. Consumer deposits account for 40% of funding with an average balance of $25 thousand, while commercial deposits represent 60% with an average balance of $113 thousand[10][14] Asset Quality Seacoast demonstrated strong asset quality in Q2 2025, with improvements in criticized and classified loans, nonperforming loans, and net charge-offs. The loan portfolio remains well-diversified Asset Quality Metrics | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | QoQ Change | YoY Change | | :-------------------------------- | :------------ | :------------- | :------------ | :--------- | :--------- | | Criticized & Classified Loans to Total Loans | 2.39% | 2.41% | 2.59% | -2 bps | -20 bps | | Nonperforming Loans ($M) | $64.2 | $71.0 | $59.9 | -9.6% | +7.2% | | Nonperforming Loans to Total Loans | 0.61% | 0.68% | 0.60% | -7 bps | +1 bps | | Accruing Past Due Loans ($M) | $14.2 | $17.2 | $29.5 | -17.4% | -51.9% | | Nonperforming Assets to Total Assets | 0.44% | 0.50% | 0.45% | -6 bps | -1 bps | | Allowance for Credit Losses to Total Loans | 1.34% | 1.34% | 1.41% | 0 bps | -7 bps | | Net Charge-offs ($M) | $2.5 | $7.0 | $9.9 | -64.3% | -74.7% | - The loan portfolio is well-diversified across asset mix, industry, and loan type, with an average loan size of $437 thousand and average commercial loan size of $872 thousand, indicating granularity[14] - Construction and land development and commercial real estate loans remain well below regulatory guidance, at 35% and 239% of total bank-level risk-based capital, respectively, as of June 30, 2025[14] Capital and Liquidity Seacoast maintains a strong capital position and ample liquidity, exceeding regulatory requirements and possessing significant available borrowing capacity Capital and Liquidity Ratios | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | QoQ Change | YoY Change | | :-------------------------------- | :------------ | :------------- | :------------ | :--------- | :--------- | | Tier 1 Capital Ratio | 14.6% | 14.7% | 14.8% | -10 bps | -20 bps | | Total Capital Ratio | 16.1% | N/A | N/A | N/A | N/A | | Common Equity Tier 1 Capital Ratio | 14.0% | N/A | N/A | N/A | N/A | | Tier 1 Leverage Ratio | 11.1% | N/A | N/A | N/A | N/A | | Loan-to-Deposit Ratio | 84.96% | 83.17% | 82.90% | +179 bps | +206 bps | | Tangible Common Equity to Tangible Assets | 9.75% | 9.58% | 9.30% | +17 bps | +45 bps | | Cash and Cash Equivalents ($M) | $332.4 | N/A | N/A | N/A | N/A | - The company is considered 'well capitalized' based on applicable U.S. regulatory capital ratio requirements. In addition to cash, Seacoast had $5.9 billion in available borrowing capacity, including $3.5 billion in collateralized lines of credit, $2.0 billion of unpledged debt securities, and $0.3 billion in unsecured lines of credit[14] Efficiency Ratio Seacoast's efficiency ratio improved significantly in Q2 2025, reflecting higher net interest and noninterest income, partially offset by modestly higher expenses, demonstrating disciplined expense control and strategic investments for growth Efficiency Ratio Trends | Metric | Q2 2025 | Q1 2025 | Q2 2024 | QoQ Change | YoY Change | | :-------------------- | :------ | :------ | :------ | :--------- | :--------- | | Efficiency Ratio | 56.95% | 60.28% | 60.21% | -333 bps | -326 bps | | Adjusted Efficiency Ratio | 55.36% | 59.53% | 60.21% | -417 bps | -485 bps | Supplementary Financial Information This section provides comprehensive supplementary financial data, including detailed tables for financial highlights, consolidated statements of income, balance sheets, credit analysis, loan portfolio, and average balances with yields and rates Financial Highlights Table This table provides a snapshot of key financial and performance metrics for Seacoast Banking Corporation of Florida over the past five quarters, including balance sheet data, performance ratios, and adjusted operating measures Financial Highlights (Amounts in thousands except per share data) | (Amounts in thousands except per share data) | 2Q'25 | 1Q'25 | 4Q'24 | 3Q'24 | 2Q'24 | | :------------------------------------------- | :---- | :---- | :---- | :---- | :---- | | Selected balance sheet data: | | | | | |\ | Gross loans | $10,608,824 | $10,443,021 | $10,299,950 | $10,205,281 | $10,038,508 | | Total deposits | 12,497,598 | 12,574,796 | 12,242,427 | 12,243,585 | 12,116,118 | | Total assets | 15,944,955 | 15,732,485 | 15,176,308 | 15,168,371 | 14,952,613 | | Performance measures: | | | | | |\ | Net income | $42,687 | $31,464 | $34,085 | $30,651 | $30,244 | | Net interest margin | 3.58 % | 3.48 % | 3.39 % | 3.17 % | 3.18 % | | Diluted earnings per share (EPS) | 0.50 | 0.37 | 0.40 | 0.36 | 0.36 | | Return on average assets (ROA) | 1.08 % | 0.83 % | 0.89 % | 0.81 % | 0.82 % | | Return on average tangible assets (ROTA) | 1.24 | 0.98 | 1.06 | 0.99 | 1.00 | | Return on average tangible common equity (ROTCE) | 12.82 | 10.17 | 10.90 | 10.31 | 10.75 | | Efficiency ratio | 56.95 % | 60.28 % | 56.26 % | 59.84 % | 60.21 % | | Adjusted operating measures: | | | | | |\ | Adjusted net income | $44,466 | $32,102 | $40,556 | $30,511 | $30,277 | | Adjusted diluted EPS | 0.52 | 0.38 | 0.48 | 0.36 | 0.36 | | Adjusted efficiency ratio | 55.36 | 59.53 | 56.07 | 59.84 | 60.21 | | Other data: | | | | | |\ | Full-time equivalent employees | 1,522 | 1,518 | 1,504 | 1,493 | 1,449 | | Full-service banking offices | 84 | 79 | 77 | 77 | 77 | Consolidated Statements of Income Table This table presents the unaudited consolidated statements of income for Seacoast Banking Corporation of Florida and its subsidiaries, detailing interest income, interest expense, net interest income, provision for credit losses, noninterest income, noninterest expense, and net income across quarterly and six-month periods Consolidated Statements of Income (Amounts in thousands, except per share data) | (Amounts in thousands, except per share data) | 2Q'25 | 1Q'25 | 4Q'24 | 3Q'24 | 2Q'24 | Six months ended 2Q'25 | Six months ended 2Q'24 | | :-------------------------------------------- | :---- | :---- | :---- | :---- | :---- | :--------------------- | :--------------------- | | Total Interest Income | $193,347 | $184,255 | $185,930 | $184,115 | $179,808 | $377,602 | $355,514 | | Total Interest Expense | 66,483 | 65,738 | 70,126 | 77,450 | 75,384 | 132,221 | 146,012 | | Net Interest Income | 126,864 | 118,517 | 115,804 | 106,665 | 104,424 | 245,381 | 209,502 | | Provision for credit losses | 4,379 | 9,250 | 3,699 | 6,273 | 4,918 | 13,629 | 6,286 | | Total Noninterest Income | 24,521 | 22,180 | 17,068 | 23,679 | 22,184 | 46,701 | 42,681 | | Total Noninterest Expense | 91,730 | 90,597 | 85,575 | 84,818 | 82,537 | 182,327 | 172,908 | | Income Before Income Taxes | 55,276 | 40,850 | 43,598 | 39,253 | 39,153 | 96,126 | 72,989 | | Provision for income taxes | 12,589 | 9,386 | 9,513 | 8,602 | 8,909 | 21,975 | 16,739 | | Net Income | $42,687 | $31,464 | $34,085 | $30,651 | $30,244 | $74,151 | $56,250 | | Diluted Net income per share | $0.50 | $0.37 | $0.40 | $0.36 | $0.36 | $0.87 | $0.66 | Consolidated Balance Sheets Table This table presents the unaudited consolidated balance sheets for Seacoast Banking Corporation of Florida and its subsidiaries, detailing assets, liabilities, and shareholders' equity at various quarter-end dates Consolidated Balance Sheets (Amounts in thousands) | (Amounts in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Assets | | | | | |\ | Total cash and cash equivalents | $332,428 | $500,572 | $476,607 | $637,058 | $749,525 | | Total debt securities | 3,479,497 | 3,252,609 | 2,861,729 | 2,806,105 | 2,625,259 | | Loans, net of allowance for credit losses | 10,466,640 | 10,302,754 | 10,161,895 | 10,064,812 | 9,896,867 | | Goodwill | 732,417 | 732,417 | 732,417 | 732,417 | 732,417 | | Total Assets | $15,944,955 | $15,732,485 | $15,176,308 | $15,168,371 | $14,952,613 | | Liabilities | | | | | |\ | Total Deposits | 12,497,598 | 12,574,796 | 12,242,427 | 12,243,585 | 12,116,118 | | Federal Home Loan Bank borrowings | 715,000 | 465,000 | 245,000 | 245,000 | 180,000 | | Total Liabilities | 13,673,390 | 13,502,745 | 12,993,065 | 12,974,521 | 12,822,232 | | Shareholders' Equity | | | | | |\ | Total Shareholders' Equity | 2,271,565 | 2,229,740 | 2,183,243 | 2,193,850 | 2,130,381 | | Total Liabilities & Shareholders' Equity | $15,944,955 | $15,732,485 | $15,176,308 | $15,168,371 | $14,952,613 | | Common shares outstanding | 85,948 | 85,618 | 85,568 | 85,441 | 85,299 | Credit Analysis and Loan Portfolio Table This table provides a detailed breakdown of Seacoast's credit quality metrics and loan portfolio composition by type for various quarter-end periods Credit Analysis and Loan Portfolio (Amounts in thousands) | (Amounts in thousands) | 2Q'25 | 1Q'25 | 4Q'24 | 3Q'24 | 2Q'24 | | :------------------------------------ | :---- | :---- | :---- | :---- | :---- | | Credit Analysis | | | | | |\ | Net charge-offs | $2,462 | $7,038 | $6,113 | $7,445 | $9,946 | | Net charge-offs to average loans | 0.09 % | 0.27 % | 0.24 % | 0.29 % | 0.40 % | | Allowance for credit losses | $142,184 | $140,267 | $138,055 | $140,469 | $141,641 | | Total allowance for credit losses to total loans at end of period | 1.34 % | 1.34 % | 1.34 % | 1.38 % | 1.41 % | | Nonperforming loans | $64,198 | $71,018 | $92,446 | $80,857 | $59,927 | | Nonperforming Loans to Loans at End of Period | 0.61 % | 0.68 % | 0.90 % | 0.79 % | 0.60 % | | Nonperforming Assets to Total Assets at End of Period | 0.44 | 0.50 | 0.65 | 0.58 | 0.45 | | Loans by Type (End of Period) | | | | | |\ | Construction and land development | $603,079 | $618,493 | $648,054 | $595,753 | $593,534 | | Commercial real estate - owner occupied | 1,778,930 | 1,713,579 | 1,686,629 | 1,676,814 | 1,656,391 | | Commercial real estate - non-owner occupied | 3,624,528 | 3,513,400 | 3,503,807 | 3,573,076 | 3,423,266 | | Residential real estate | 2,678,042 | 2,653,012 | 2,616,784 | 2,564,903 | 2,555,320 | | Commercial and financial | 1,741,158 | 1,753,090 | 1,651,355 | 1,575,228 | 1,582,290 | | Consumer | 183,087 | 191,447 | 193,321 | 219,507 | 227,707 | | Total Loans | $10,608,824 | $10,443,021 | $10,299,950 | $10,205,281 | $10,038,508 | Average Balances, Interest Income and Expenses, Yields and Rates Tables These tables provide a comprehensive breakdown of average earning assets, interest-bearing liabilities, and their corresponding interest income, expenses, yields, and rates for both quarterly and six-month periods, on a fully taxable equivalent basis Average Balances, Interest Income and Expenses, Yields and Rates Quarterly Trends (2Q'25 vs 1Q'25 vs 2Q'24): | Metric | 2Q'25 Average Balance ($M) | 2Q'25 Interest ($M) | 2Q'25 Yield/Rate | 1Q'25 Average Balance ($M) | 1Q'25 Interest ($M) | 1Q'25 Yield/Rate | 2Q'24 Average Balance ($M) | 2Q'24 Interest ($M) | 2Q'24 Yield/Rate | | :------------------------------------ | :----------------------- | :------------------ | :--------------- | :----------------------- | :------------------ | :--------------- | :----------------------- | :------------------ | :--------------- | | Total Earning Assets | $14,250,137 | $193,779 | 5.45 % | $13,832,739 | $184,594 | 5.41 % | $13,249,604 | $180,041 | 5.47 % | | Total Interest-Bearing Liabilities | $10,008,353 | $66,486 | 2.66 % | $9,724,319 | $65,737 | 2.74 % | $9,101,576 | $75,384 | 3.33 % | | Cost of deposits | N/A | N/A | 1.80 % | N/A | N/A | 1.93 % | N/A | N/A | 2.31 % | | Net interest income as a % of earning assets | N/A | $127,293 | 3.58 % | N/A | $118,857 | 3.48 % | N/A | $104,657 | 3.18 % | Six Months Ended June 30, 2025 vs June 30, 2024: | Metric | 2025 Average Balance ($M) | 2025 Interest ($M) | 2025 Yield/Rate | 2024 Average Balance ($M) | 2024 Interest ($M) | 2024 Yield/Rate | | :------------------------------------ | :----------------------- | :----------------- | :-------------- | :----------------------- | :----------------- | :-------------- | | Total Earning Assets | $14,042,591 | $378,374 | 5.43 % | $13,167,611 | $355,966 | 5.44 % | | Total Interest-Bearing Liabilities | $9,867,122 | $132,221 | 2.70 % | $8,995,399 | $146,012 | 3.26 % | | Cost of deposits | N/A | N/A | 1.87 % | N/A | N/A | 2.25 % | | Net interest income as a % of earning assets | N/A | $246,153 | 3.53 % | N/A | $209,954 | 3.21 % | Customer Relationship Funding Table This table details the composition of customer deposits and funding sources, categorized by commercial, retail, public funds, and other, across various account types for recent quarter-end periods Customer Relationship Funding (Amounts in thousands) | (Amounts in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Noninterest demand | | | | | |\ | Commercial | $2,717,688 | $2,830,497 | $2,621,469 | $2,731,564 | $2,664,353 | | Retail | 509,539 | 536,661 | 502,967 | 509,527 | 532,623 | | Total Noninterest Demand | 3,376,941 | 3,492,491 | 3,352,372 | 3,443,455 | 3,397,918 | | Interest-bearing demand | | | | | |\ | Commercial | 1,466,184 | 1,520,186 | 1,467,508 | 1,426,920 | 1,533,725 | | Retail | 838,340 | 881,282 | 881,236 | 874,043 | 892,032 | | Total Interest-Bearing Demand | 2,518,857 | 2,734,260 | 2,667,843 | 2,487,448 | 2,821,092 | | Total Transaction Accounts | | | | | |\ | Commercial | 4,183,872 | 4,350,683 | 4,088,977 | 4,158,484 | 4,198,078 | | Retail | 1,347,879 | 1,417,943 | 1,384,203 | 1,383,570 | 1,424,655 | | Total Transaction Accounts | 5,895,798 | 6,226,751 | 6,020,215 | 5,930,903 | 6,219,010 | | Total Deposits | $12,497,598 | $12,574,796 | $12,242,427 | $12,243,585 | $12,116,118 | | Total customer funding | $12,171,358 | $12,513,463 | $12,180,860 | $12,197,225 | $12,053,216 | Non-GAAP Financial Measures and Other Information This section explains the rationale for using non-GAAP financial measures, provides detailed reconciliations to GAAP, and includes important company information and forward-looking statements Explanation of Non-GAAP Financial Measures This section clarifies the use of non-GAAP financial measures by management to analyze company performance, providing supplemental information and a clearer understanding for investors, while acknowledging their limitations and providing reconciliations to GAAP - Management uses non-GAAP financial measures to analyze the Company's performance, believing they provide useful supplemental information and a clearer understanding of performance, and enhance investors' understanding of the business[34] - These measures are also useful for understanding performance trends and facilitating comparisons with other financial institutions. However, limitations include potential disagreements on component items and differing definitions across companies[34] - The Company provides reconciliations between GAAP and non-GAAP measures, emphasizing that these disclosures should not be considered an alternative to GAAP[34] GAAP to Non-GAAP Reconciliation Tables These tables provide detailed reconciliations of GAAP financial measures to their corresponding non-GAAP adjusted measures, including net income, earnings per diluted share, pre-tax pre-provision earnings, return on average assets, return on average tangible assets, and net interest income, for quarterly and six-month periods GAAP to Non-GAAP Reconciliations Net Income Reconciliation: | Metric | 2Q'25 ($M) | 1Q'25 ($M) | 4Q'24 ($M) | 3Q'24 ($M) | 2Q'24 ($M) | Six Months Ended 2Q'25 ($M) | Six Months Ended 2Q'24 ($M) | | :-------------------------------- | :--------- | :--------- | :--------- | :--------- | :--------- | :-------------------------- | :-------------------------- | | Net Income (GAAP) | $42,687 | $31,464 | $34,085 | $30,651 | $30,244 | $74,151 | $56,250 | | Total Adjustments to Noninterest Income | (39) | (196) | 8,388 | (187) | 44 | (235) | (185) | | Total Adjustments to Noninterest Expense | (2,422) | (1,051) | — | — | — | (3,473) | (7,094) | | Tax effect of adjustments | 604 | 217 | 2,197 | (47) | 11 | 821 | 1,751 | | Adjusted Net Income | $44,466 | $32,102 | $40,556 | $30,511 | $30,277 | $76,568 | $61,408 | | Diluted EPS (GAAP) | $0.50 | $0.37 | $0.40 | $0.36 | $0.36 | $0.87 | $0.66 | | Adjusted Earnings per Diluted Share | $0.52 | $0.38 | $0.48 | $0.36 | $0.36 | $0.90 | $0.72 | Return on Average Assets (ROA) Reconciliation: | Metric | 2Q'25 | 1Q'25 | 4Q'24 | 3Q'24 | 2Q'24 | Six Months Ended 2Q'25 | Six Months Ended 2Q'24 | | :-------------------------------- | :---- | :---- | :---- | :---- | :---- | :------------------- | :------------------- | | ROA (GAAP) | 1.08 % | 0.83 % | 0.89 % | 0.81 % | 0.82 % | 0.96 % | 0.77 % | | Impact of other adjustments for Adjusted Net Income | 0.05 | 0.02 | 0.17 | — | — | 0.03 | 0.07 | | Adjusted ROA | 1.13 | 0.85 | 1.06 | 0.81 | 0.82 | 0.99 | 0.84 | Return on Average Tangible Assets (ROTA) Reconciliation: | Metric | 2Q'25 | 1Q'25 | 4Q'24 | 3Q'24 | 2Q'24 | Six Months Ended 2Q'25 | Six Months Ended 2Q'24 | | :-------------------------------- | :---- | :---- | :---- | :---- | :---- | :------------------- | :------------------- | | ROTA (GAAP) | 1.24 | 0.98 | 1.06 | 0.99 | 1.00 | 1.12 | 0.94 | | Impact of other adjustments for Adjusted Net Income | 0.05 | 0.02 | 0.18 | (0.01) | — | 0.03 | 0.08 | | Adjusted ROTA | 1.29 % | 1.00 % | 1.24 % | 0.98 % | 1.00 % | 1.15 % | 1.02 % | Return on Average Tangible Common Equity (ROTCE) Reconciliation: | Metric | 2Q'25 | 1Q'25 | 4Q'24 | 3Q'24 | 2Q'24 | Six Months Ended 2Q'25 | Six Months Ended 2Q'24 | | :-------------------------------- | :---- | :---- | :---- | :---- | :---- | :------------------- | :------------------- | | ROTCE (GAAP) | 12.82 | 10.17 | 10.90 | 10.31 | 10.75 | 11.52 | 10.15 | | Impact of other adjustments for Adjusted Net Income | 0.49 | 0.18 | 1.84 | (0.04) | 0.01 | 0.34 | 0.80 | | Adjusted ROTCE | 13.31 % | 10.35 % | 12.74 % | 10.27 % | 10.76 % | 11.86 % | 10.95 % | Company Information and Forward-Looking Statements This section provides general information about Seacoast Banking Corporation of Florida, details regarding conference calls and SEC filings, and a cautionary notice about forward-looking statements, outlining potential risks and uncertainties that could affect future results - Seacoast Banking Corporation of Florida is one of the largest community banks headquartered in Florida, with approximately $15.9 billion in assets and $12.5 billion in deposits as of June 30, 2025, offering integrated financial services through 84 full-service branches and digital solutions[17] - The company urges investors to read the proxy statement/prospectus and other SEC filings related to the proposed merger of Villages Bancorporation, Inc. for important information[18][19][20] - The report includes a cautionary notice regarding forward-looking statements, highlighting various factors that could cause actual results to differ materially from expectations, such as economic conditions, interest rate changes, regulatory policies, acquisition risks, and cybersecurity threats[21][22][23][24][25]