Seacoast Banking of Florida(US:SBCF)2025-10-28 15:02Financial Data and Key Metrics Changes - Adjusted net income increased 48% year-over-year to $45.2 million or $0.52 per share [6] - Organic deposits grew $212 million or 7% annualized, including $80 million in non-interest-bearing deposits [6][15] - Net interest income was $133.5 million, a 5% increase from the prior quarter, and net interest margin expanded 3 basis points to 3.32% [6][8] - Tangible book value per share increased 9% year-over-year to $17.61 [7] Business Line Data and Key Metrics Changes - Wealth management achieved a record quarter with $258 million in new assets under management (AUM), the highest quarterly result in the division's history [9] - Non-interest income, excluding securities activity, was $24.7 million, increasing 5% from the prior year quarter [9] - Loan outstandings, excluding the impact of the Heartland acquisition, increased at an annualized 8% [11] Market Data and Key Metrics Changes - The pipeline for loans increased 30% to $1.2 billion, indicating strong demand across markets [11] - Non-performing loans declined by $3.6 million during the quarter, representing only 0.55% of total loans [13] Company Strategy and Development Direction - The company is focused on enhancing its return profile while delivering strong growth on both sides of the balance sheet [2] - The Villages Bancorporation acquisition is expected to provide significant growth opportunities and enhance liquidity [3][16] - The company aims to maintain a disciplined, conservative credit culture while expanding its loan portfolio [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth outlook and ability to deliver continued improvements and returns into 2026 [4][16] - The competitive landscape remains challenging, with tight credit spreads, but the company is navigating carefully [86] Other Important Information - The Heartland acquisition added four branches and approximately $824 million in assets, while The Villages acquisition added 19 branches and over $4 billion in assets [7][16] - The company expects to exit the year with a core net interest margin reaching approximately 3.45% [8] Q&A Session Summary Question: Growth outlook and pipeline momentum - Management highlighted impressive growth despite recent acquisitions and expressed confidence in maintaining high single-digit growth moving forward [21][24] Question: The Villages deal update - Management reported a smooth integration process and emphasized the importance of a seamless conversion for customers [40][42] Question: Loan pricing and spreads - Management noted that credit spreads are tight, particularly for high-quality loans, and emphasized a cautious approach [86] Question: Future investments and technology - Management confirmed ongoing investments in technology and infrastructure to support growth and compete effectively [48][49]