Seacoast Banking of Florida(US:SBCF)2026-01-29 21:28Financial Performance - Net income for Q4'25 was $34,260,000, a decrease of 6% from Q3'25 and an increase of 9% from Q4'24, with total net income for the twelve months reaching $144,878,000, up 20% year-over-year[23]. - Adjusted net income for Q4'25 was $47,741,000, reflecting a 6% increase from Q3'25 and a 17% increase from Q4'24, with total adjusted net income for the twelve months at $169,473,000, up 28% year-over-year[23]. - Net income for Q4 2025 was $34,260, a decrease of 5.5% from Q3'25 and an increase of 0.5% from Q4'24[33]. - Net interest income for Q4'25 was $176,244,000, a significant increase of 32% from Q3'25 and 52% from Q4'24, with total net interest income for the twelve months at $556,308,000, up 29% year-over-year[23]. - Total noninterest income increased to $28,631 in Q4'25, up 20.5% year-over-year from $17,068 in Q4'24[33]. - Total noninterest expense for Q4'25 was $130,546, an increase of 28.5% from $101,987 in Q3'25[33]. - Total customer funding, including deposits and securities sold under agreements to repurchase, increased to $16.52 billion from $12.18 billion, a growth of 35.7%[31]. Loan and Deposit Growth - Fourth quarter annualized organic loan growth was 15%[1]. - Loans increased by $1.7 billion during the fourth quarter, totaling $12.6 billion as of December 31, 2025[11]. - Total loans increased to $12,627,984,000 in 4Q'25, up 15.2% from $10,964,173,000 in 3Q'25[28]. - Total deposits increased to $16.3 billion as of December 31, 2025, up $3.2 billion from September 30, 2025, including $3.5 billion from the VBI acquisition[15]. - Average noninterest bearing demand deposits rose 15% to $4.1 billion in Q4 2025 from $3.5 billion in Q3 2025, and increased 20% from $3.4 billion in Q4 2024[15]. - Total deposits rose to $16,256,343 thousand as of December 31, 2025, an increase of 24.4% from $13,090,319 thousand at September 30, 2025[26]. Asset Management and Efficiency - The efficiency ratio improved to 63.36% in the fourth quarter of 2025, compared to 64.44% in the prior quarter[11]. - Adjusted efficiency ratio improved to 54.50% in Q4'25 from 57.63% in Q3'25[33]. - The company emphasized the importance of non-GAAP financial measures for a clearer understanding of performance trends and comparisons with other financial institutions[32]. - The return on average assets (GAAP basis) decreased to 0.64% in Q4'25 from 0.88% in Q3'25, while the adjusted return on average assets was 0.89%[23]. Credit Quality and Provisions - The provision for credit losses was $29.3 million, primarily due to the acquisition of VBI, which included a day-one loan loss provision of $22.7 million[9]. - Net charge-offs were $0.9 million in Q4 2025, or three basis points annualized, down from $3.2 million in Q3 2025 and $6.1 million in Q4 2024[15]. - The allowance for credit losses was $178,803 thousand, up from $147,453 thousand, indicating a proactive approach to risk management[26]. - Nonperforming loans rose to $72,001,000 in 4Q'25, compared to $60,562,000 in 3Q'25, an increase of 19.5%[28]. Acquisitions and Expansion - The acquisition of Villages Bancorporation, Inc. added approximately $4.4 billion in assets, including $1.2 billion in loans and $3.5 billion in deposits[1][5]. - The company expanded its branch footprint with new locations in Bradenton, FL, and its first branch in the greater Atlanta market[6]. - Seacoast operates 104 full-service branches across Florida and recently acquired 19 branches in The Villages® community, which will operate under the name Citizens First Bank until system conversion in 2026[17]. - The company issued 9,923,263 common shares and 11,250 Series A non-voting convertible preferred shares in the acquisition of Villages Bancorporation, Inc. on October 1, 2025[27]. Capital and Shareholder Equity - The Tier 1 capital ratio was 14.4% at December 31, 2025, compared to 14.5% at September 30, 2025, and 14.8% at December 31, 2024[15]. - Tangible equity to tangible assets was 9.31% at December 31, 2025, down from 9.76% at September 30, 2025, due to capital invested in the VBI acquisition[15]. - Total shareholders' equity increased to $3,055,787 thousand as of December 31, 2025, from $2,378,132 thousand at September 30, 2025, a rise of 28.4%[26].