PFHD Professional Holding Corporation

Significant Expansion in Net Interest Margin and Net Interest Income Highlight Q3 Results

Well-Positioned Balance Sheet with Strong Capital and Liquidity

STUART, Fla., Oct. 27, 2022 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the third quarter of 2022 of $29.2 million, or $0.47 per diluted share. Third quarter 2022 net income decreased 11% compared to the second quarter of 2022 due to higher provision for credit losses resulting from changes in economic forecast factors, and additional coverage for estimated economic impacts from Hurricane Ian. Third quarter 2022 net income increased 27% compared to the third quarter of 2021. Adjusted net income¹ for the third quarter of 2022 was $32.8 million, or $0.53 per diluted share. Third quarter 2022 adjusted net income¹ decreased 10% compared to the second quarter of 2022 due to a higher provision for credit losses. Third quarter 2022 adjusted net income¹ increased 12% compared to the third quarter of 2021. Pre-tax pre-provision earnings¹ were $43.1 million in the third quarter of 2022, an increase of 1% compared to the second quarter of 2022 and 23% compared to the third quarter of 2021. Adjusted pre-tax pre-provision earnings¹ were $49.0 million in the third quarter of 2022, an increase of 6% compared to the second quarter of 2022 and 12% compared to the third quarter of 2021.

At September 30, 2022, the ratio of tangible common equity to tangible assets increased to 9.79%, and tangible book value per share was $15.98. A decline in the value of the available for sale securities portfolio, driven by rising interest rates during the first three quarters of 2022, negatively impacted the ratio of tangible common equity to tangible assets by 159 basis points and negatively impacted tangible book value per share by $2.93 compared to December 31, 2021.

For the third quarter of 2022, return on average tangible assets was 1.17%, return on average tangible shareholders' equity was 11.53%, and the efficiency ratio was 57.13%, compared to 1.29%, 13.01%, and 56.22%, respectively, in the prior quarter, and 1.00%, 9.56%, and 59.55%, respectively, in the prior year quarter. Adjusted return on average tangible assets¹ in the third quarter of 2022 was 1.27%, adjusted return on average tangible shareholders' equity¹ was 12.48%, and the adjusted efficiency ratio¹ was 53.28%, compared to 1.38%, 13.97%, and 53.15%, respectively, in the prior quarter, and 1.23%, 11.72%, and 51.50%, respectively, in the prior year quarter.

Charles M. Shaffer, Seacoast's Chairman and CEO, said, "Seacoast’s team delivered another solid quarter, highlighted by a significant increase in the net interest margin and net interest income, disciplined growth in loan outstandings, and continued strong asset quality metrics. In addition, quarter over quarter, adjusted pre-tax pre-provision earnings of $49.0 million improved 6%, driven by a material increase in net interest income."

Shaffer added, "We continue to operate the company with a robust balance sheet, fortified by a tangible common equity ratio of 9.79%, which increased over the prior quarter despite rising interest rates that impacted accumulated comprehensive income. We saw continued improvements in already strong credit quality metrics, and the allowance for credit losses totals $95.3 million, with an additional $19.1 million in purchase discount on acquired loans. This provides meaningful loss absorption capacity which, when aggregated, represents 1.71% of loans outstanding. Seacoast’s balance sheet is supported by one of the best customer franchises in the industry, delivering low-cost funding and liquidity. We closed the quarter with a loan to deposit ratio of 76% which, looking forward, allows remix of the balance sheet to higher-yielding earning assets to support continued growth in net interest income."

Shaffer concluded, "I would like to thank all Seacoast associates for focusing on quickly recovering from Hurricane Ian and assisting our customers after the storm passed. All Seacoast branch offices were open within a few days, and the team rapidly pivoted and completed the Apollo and Drummond acquisitions. The team showed remarkable commitment and resilience in the face of a significant weather event, and I am very proud of all involved."

Acquisitions Update

Seacoast’s balanced growth strategy, combining organic growth with value-creating acquisitions, continues to benefit shareholders and expand the franchise across Florida.

On October 7, 2022, the Company completed the previously announced acquisition of Apollo Bancshares, Inc. (“Apollo”), which added approximately $718 million in loans and $857 million in deposits, and will provide expansion into Miami-Dade county, one of the fastest growing and most dynamic markets in the United States. System conversion activities were completed immediately after the closing of the transaction.

Also on October 7, 2022, the Company completed the previously announced acquisition of Drummond Banking Company (“Drummond”), providing Seacoast with an entry point into Gainesville, Ocala, and surrounding markets adding low-cost core deposits and diversified business lines. At the closing date, Drummond had approximately $590 million in loans and $882 million in deposits, providing a strong core deposit base, which highlights depository relationships that will provide a stable funding source for future loan growth and higher margins in a rising rate environment. Full integration and system conversion activities are expected to be completed in the first quarter of 2023.

On August 8, 2022, the Company announced its proposed acquisition of Professional Holding Corp. (“Professional”) (NASDAQ: PFHD), the sixth largest bank headquartered in South Florida. The transaction, which is expected to close in the first quarter of 2023, will increase market share in Miami-Dade, Broward, and Palm Beach counties. Full integration and system conversion activities are expected to be completed late in the second quarter of 2023.

In the first quarter of 2022, Seacoast completed the acquisitions of Sabal Palm Bancorp, Inc. (“Sabal Palm”) in Sarasota and Business Bank of Florida Corp. (“BBFC”) in Brevard County, which collectively added a combined $368 million in loans and $562 million in deposits. Integration activities, including system conversion, were completed in the first quarter of 2022 for BBFC and in the second quarter of 2022 for Sabal Palm.

Update on Hurricane Ian

In late September, communities across our corporate footprint were impacted by Hurricane Ian. We maintained uninterrupted digital and telephone access for our customers and, having experienced minimal impacts to our branch properties, we fully reopened to serve our communities shortly after the storm had passed. Recovery efforts in many areas continue and the full impacts on people and businesses in the most hard-hit regions are not fully known. In light of these uncertainties, the Company added $2.1 million to the provision for credit losses.

Financial Results

Income Statement

• Net income was $29.2 million, or $0.47 per diluted share, for the third quarter of 2022 compared to net income of $32.8 million, or $0.53 per diluted share, for the prior quarter, and $22.9 million, or $0.40 per diluted share, for the prior year quarter. For the nine months ended September 30, 2022, net income was $82.6 million, or $1.33 per diluted share, compared to $88.1 million, or $1.56 per diluted share, for the nine months ended September 30, 2021. The current year-to-date results included $12.1 million in provision for credit losses, including $5.1 million in the first quarter of 2022 recorded for loans acquired in the Sabal Palm and BBFC transactions, and additional coverage for potential impacts from Hurricane Ian. Prior year-to-date results included the reversal of provision for credit losses of $5.5 million, reflecting improvement at the time in post-COVID economic indicators. Adjusted net income¹ for the third quarter of 2022 was $32.8 million, or $0.53 per diluted share. This compares to $36.3 million, or $0.59 per diluted share, for the prior quarter, and $29.4 million, or $0.51 per diluted share, for the prior year quarter. For the nine months ended September 30, 2022, adjusted net income¹ was $96.2 million, or $1.56 per diluted share, compared to $98.1 million, or $1.74 per diluted share, for the nine months ended September 30, 2021.
• Net revenues were $104.4 million in the third quarter of 2022, an increase of $5.8 million, or 6%, compared to the prior quarter, and an increase of $14.0 million, or 16%, compared to the prior year quarter. For the nine months ended September 30, 2022, net revenues were $294.9 million, an increase of $39.1 million, or 15%, compared to the nine months ended September 30, 2021. Adjusted revenues¹ were $104.7 million in the third quarter of 2022, an increase of $5.8 million, or 6%, compared to the prior quarter, and an increase of $14.4 million, or 16%, compared to the prior year quarter. For the nine months ended September 30, 2022, adjusted revenues¹ were $296.0 million, an increase of $40.1 million, or 16%, compared to the nine months ended September 30, 2021.
• On an adjusted basis, pre-tax pre-provision earnings¹ were $49.0 million, an increase of 6% compared to the second quarter of 2022 and an increase of 12% compared to the third quarter of 2021.
• Net interest income totaled $88.3 million in the third quarter of 2022, an increase of $6.6 million, or 8%, from the second quarter of 2022 and an increase of $17.0 million, or 24%, compared to the third quarter of 2021. For the nine months ended September 30, 2022, net interest income was $246.5 million, an increase of $42.7 million, or 21%, compared to the nine months ended September 30, 2021.
• Net interest margin increased 29 basis points to 3.67% in the third quarter of 2022 compared to 3.38% in the second quarter of 2022. Excluding the effects of PPP and accretion on acquired loans, net interest margin increased 33 basis points to 3.57% in the third quarter of 2022 from 3.24% in the second quarter of 2022. Securities yields increased 38 basis points to 2.36%, and loan yields increased 16 basis points to 4.45%. The effect on net interest margin of accretion of purchase discounts on acquired loans in the third quarter of 2022 was nine basis points. The cost of deposits increased three basis points to nine basis points for the third quarter of 2022 compared to six basis points in the prior quarter.
• Noninterest income totaled $16.1 million in the third quarter of 2022, a decrease of $0.9 million, or 5%, compared to the prior quarter, and a decrease of $2.9 million, or 15%, compared to the prior year quarter. For the nine months ended September 30, 2022, noninterest income was $48.4 million, a decrease of $3.6 million, or 7%, compared to the nine months ended September 30, 2021. Results for the third quarter of 2022 included the following:
  • Service charges on deposits, which increased $0.1 million compared to the prior quarter and $1.0 million year over year, continue to benefit from growth in commercial deposit relationships.
  • Despite the impact of market declines, the wealth management division has demonstrated continued success in building relationships, and during the third quarter of 2022, we transitioned $100.0 million in customer deposit outstandings to assets under management in our wealth division.
  • Mortgage banking fees continue to be impacted by the overall slowdown attributed to significant increases in mortgage rates and low inventory levels, declining $0.5 million compared to the prior quarter.
  • Other income increased by $0.2 million in the third quarter of 2022, compared to the prior quarter, with increases in SBIC investment income offset by lower loan-swap related income.
  • The Company recognized $0.4 million in securities losses in the third quarter of 2022, compared to $0.3 million in the second quarter of 2022 and nominal losses in the third quarter of 2021. Losses in each period represent mark to market adjustment on the Company’s CRA-qualified mutual fund.
• The provision for credit losses was $4.7 million in the third quarter of 2022, compared to $0.8 million in the prior quarter. The increase reflects loan growth, along with changes in economic forecast factors, and losses that may result from the impact of Hurricane Ian on our borrowers.
• Noninterest expense was $61.4 million in the third quarter of 2022, an increase of $5.2 million, or 9%, compared to the prior quarter, and an increase of $6.1 million, or 11%, compared to the prior year quarter. Of the increase, $2.6 million was unique to the quarter, including the provision for unfunded commitments, recruiting, and project-related expenses that are not expected to recur. Noninterest expense was $176.4 million for the nine months ended September 30, 2022, compared to $147.2 million in the nine months ended September 30, 2021. Changes from the second quarter of 2022 included the following:
  • Salaries and wages increased $0.4 million to $28.4 million in the third quarter of 2022. During the third quarter the Company had the opportunity to invest in a team of well-seasoned C&I focused commercial bankers, treasury officers, and credit officers in North Florida, complementing our acquisition of Drummond and further expanding our reach in Ocala and Gainesville. Additionally, we expanded our commercial banking team in West and Central Florida, adding a significant number of bankers in these markets. Lastly, we hired numerous support and treasury roles supporting the Company's successful strategy of banking middle market operating companies.
  • Outsourced data processing costs decreased by $0.7 million in the third quarter of 2022, primarily attributed to merger related conversion costs incurred in the second quarter of 2022.
  • Occupancy costs increased quarter over quarter as a result of the Company acquiring two branch properties that it had previously leased. The resulting write-offs of lease assets of $0.9 million impacted occupancy expense during the quarter, with ongoing expected annual savings of $0.3 million in net occupancy expense on these branches.
  • Legal and professional fees increased by $0.8 million to $3.8 million in the third quarter of 2022, reflecting higher merger-related expenses and professional fees on a project that was completed.
  • The prior quarter included a $1.0 million gain on sale of an OREO property. No OREO sale activity occurred in the third quarter.
  • Other expenses increased by $2.2 million, primarily reflecting higher merger-related expenses and higher recruiting costs.
  • A $1.0 million provision for credit losses on unfunded commitments reflects modeled results of changes in economic factors.
• Seacoast recorded $9.1 million of income tax expense in the third quarter of 2022, compared to $8.9 million in the second quarter of 2022 and $7.0 million in the third quarter of 2021. The second quarter of 2022 included a $1.0 million refund of Florida corporate income tax paid in prior periods. Tax benefits related to stock-based compensation totaled $0.2 million in the third quarter of 2022, $0.4 million in the second quarter of 2022, and $0.3 million in the third quarter of 2021.
• The ratio of net adjusted noninterest expense¹ to average tangible assets was 2.16% in the third quarter of 2022, compared to 2.00% in the second quarter of 2022 and 1.95% in the third quarter of 2021. The increase in the ratio was primarily driven by a decline in total assets from the prior quarter.
• The efficiency ratio was 57.13% in the third quarter of 2022, compared to 56.22% in the second quarter of 2022 and 59.55% in the prior year quarter. The adjusted efficiency ratio¹ was 53.28% in the third quarter of 2022, compared to 53.15% in the second quarter of 2022 and 51.50% in the prior year quarter. The Company continues to remain keenly focused on disciplined expense control.

Balance Sheet

• At September 30, 2022, the Company had total assets of $10.3 billion and total shareholders' equity of $1.3 billion. Book value per share was $20.95 on September 30, 2022, compared to $21.65 on June 30, 2022, and $22.12 on September 30, 2021. Tangible book value per share totaled $15.98 on September 30, 2022 compared to $16.66 on June 30, 2022 and $17.52 on September 30, 2021. A continued decline in the value of the available for sale securities portfolio driven by rising interest rates negatively impacted tangible book value per share by $2.93 when compared to December 31, 2021.
• Debt securities totaled $2.6 billion on September 30, 2022, an increase of $39.9 million, or 2%, compared to June 30, 2022. Purchases during the third quarter of 2022 totaled $199.6 million, consisting primarily of agency-issued securities at an average yield of 3.81%. The Company continues to take a prudent and disciplined approach to reinvest its excess liquidity.
• Loans totaled $6.7 billion on September 30, 2022, an increase of $149.3 million compared to June 30, 2022. Excluding PPP, loans outstanding grew 10% on an annualized basis. The Company continues to exercise a disciplined approach to loan growth, carefully underwriting loans to strict underwriting guidelines.
• Loan originations were $554.7 million in the third quarter of 2022, a decrease of 24% compared to $734.0 million in the second quarter of 2022. The weighted average add-on rate for loan outstandings increased to 5.50% by the end of the third quarter.
  • Commercial originations were $340.4 million during the third quarter of 2022, compared to $461.9 million in the second quarter of 2022, and $331.6 million in the third quarter of 2021.
  • Consumer originations in the third quarter of 2022 were $128.6 million, compared to $126.5 million in the second quarter of 2022 and $66.4 million in the third quarter of 2021. The increase from the prior year is primarily the result of consumer lending teams that joined the Company in late 2021.
  • Residential loans originated for sale in the secondary market totaled $16.4 million in the third quarter of 2022, compared to $42.7 million in the second quarter of 2022 and $95.1 million in the third quarter of 2021.
  • Closed residential loans retained in the portfolio totaled $69.3 million in the third quarter of 2022, compared to $103.0 million in the second quarter of 2022, and $250.8 million in the third quarter of 2021.
• Pipelines (loans in underwriting and approval or approved and not yet closed) totaled $641.4 million on September 30, 2022, an increase of 3% from June 30, 2022 and an increase of 34% from September 30, 2021.
  • Commercial pipelines were $530.4 million as of September 30, 2022, an increase of 11% from $476.7 million at June 30, 2022, and an increase of 44% from $368.9 million at September 30, 2021. The Company continues to focus on generating disciplined growth in full relationships, including credit facilities, deposit relationships, and wealth opportunities.
  • Consumer pipelines were $43.7 million as of September 30, 2022, a decrease of 42% from $75.5 million at June 30, 2022, and an increase of 41% from $31.0 million at September 30, 2021. The decline in the consumer pipeline is the result of higher rates slowing consumer loan demand.
  • Residential saleable pipelines were $6.6 million as of September 30, 2022, compared to $14.7 million at June 30, 2022, and $42.8 million at September 30, 2021. Retained residential pipelines were $60.7 million as of September 30, 2022, compared to $53.1 million at June 30, 2022, and $35.4 million at September 30, 2021.
• Total deposits were $8.8 billion as of September 30, 2022, a decrease of $423.5 million, or 5%, compared to June 30, 2022, and an increase of $431.2 million, or 5%, compared to September 30, 2021. The decline in deposits from the prior quarter included $100 million in transfers to wealth AUM, a $110 million decline in public funds moving to the state’s investment program, a $41 million decline in time deposits, and a $25 million decline in brokered deposits. The Company has continued to manage deposit pricing lower than competitors, and with an average loan-to-deposit ratio of 74% during the quarter, has maintained balance sheet flexibility supporting expansion of the net interest margin.
  • At September 30, 2022, the percentage of total transaction account balances to overall deposit funding increased to 65%, which continues to support the Company’s ability to maintain a consistently low cost of deposits.
  • Average noninterest demand account balances increased from the second quarter of 2022, overcoming a typical summer seasonal decline.
  • The overall cost of deposits increased three basis points from the prior quarter.

Asset Quality

• Credit metrics remain strong with charge-offs, non-accruals, and criticized assets at historically low levels. The Company remains diligent in its monitoring of these metrics, as well as changes in the broader economic environment.
• Nonperforming loans decreased by $5.0 million to $21.5 million at September 30, 2022. Nonperforming loans to total loans outstanding were 0.32% at September 30, 2022, 0.40% at June 30, 2022, and 0.55% at September 30, 2021.
• Nonperforming assets to total assets declined to 0.23% at September 30, 2022, compared to 0.27% at June 30, 2022, and 0.47% at September 30, 2021.
• The ratio of allowance for credit losses to total loans was 1.42% at September 30, 2022, 1.39% at June 30, 2022, and 1.49% at September 30, 2021. Excluding PPP loans, the ratio of allowance for credit losses to total loans at September 30, 2022 was 1.43%, compared to 1.39% at June 30, 2022, and 1.54% at September 30, 2021.
• Net charge-offs of $0.1 million for the third quarter of 2022 compared to net recoveries of $0.1 million in the second quarter of 2022 and net charge-offs of $1.4 million in the third quarter of 2021. Net charge-offs for the four most recent quarters averaged 0.01%.
• Portfolio diversification, in terms of asset mix, industry, and loan type, has been a critical element of the Company's lending strategy. Exposure across industries and collateral types is broadly distributed. Seacoast's average commercial loan size is $589 thousand, reflecting an ability to maintain granularity within the overall loan portfolio.
• Construction and land development and commercial real estate loans remain well below regulatory guidance at 30% and 191% of total bank-level risk-based capital, respectively, compared to 29% and 192% respectively, at June 30, 2022. On a consolidated basis, construction and land development and commercial real estate loans represent 28% and 175%, respectively, of total consolidated risk-based capital.
  

Capital and Liquidity

• The Company continues to operate with a fortress balance sheet, with a tier 1 capital ratio at September 30, 2022, of 16.5% compared to 16.8% at June 30, 2022, and 17.7% at September 30, 2021. The total capital ratio was 17.5% and the tier 1 leverage ratio was 12.1% at September 30, 2022.
• Cash and cash equivalents at September 30, 2022 totaled $218.6 million, with decreases from the prior quarter resulting from loan growth, more modest deployment of liquidity in investments in the securities portfolio, and deposit outflows.
• Tangible common equity to tangible assets was 9.79% at September 30, 2022, compared to 9.74% at June 30, 2022, and 10.62% at September 30, 2021. Declines in the value of available for sale securities due to rising interest rates in 2022 negatively impacted equity year to date by $180.2 million.
  
  
• At September 30, 2022, the Company had available unsecured lines of credit of $165.0 million and lines of credit under lendable collateral value of $2.1 billion. Additionally, $2.1 billion of debt securities and $959.3 million of residential and commercial real estate loans are available as collateral for potential borrowings.
  

¹Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.

FINANCIAL HIGHLIGHTS
(Amounts in thousands except per share data)	(Unaudited)
	Quarterly Trends
	3Q'22				2Q'22				1Q'22				4Q'21				3Q'21
Selected balance sheet data:
Total assets	$	10,345,235			$	10,811,704			$	10,904,817			$	9,681,433			$	9,893,498
Gross loans		6,690,845				6,541,548				6,451,217				5,925,029				5,905,884
Total deposits		8,765,414				9,188,953				9,243,768				8,067,589				8,334,172
Performance measures:
Net income	$	29,237			$	32,755			$	20,588			$	36,330			$	22,944
Net interest margin		3.67	%			3.38	%			3.25	%			3.16	%			3.22	%
Pre-tax pre-provision earnings1		43,143				42,580				33,095				40,855				35,215
Average diluted shares outstanding		61,961				61,923				61,704				59,016				57,645
Diluted earnings per share (EPS)	$	0.47			$	0.53			$	0.33			$	0.62			$	0.40
Return on (annualized):
Average assets (ROA)		1.10	%			1.21	%			0.79	%			1.43	%			0.93	%
Average tangible assets (ROTA)2		1.17				1.29				0.85				1.51				1.00
Average tangible common equity (ROTCE)2		11.53				13.01				8.02				14.29				9.56
Tangible common equity to tangible assets2		9.79				9.74				9.90				11.09				10.62
Tangible book value per share2	$	15.98			$	16.66			$	17.12			$	17.84			$	17.52
Efficiency ratio		57.13	%			56.22	%			62.33	%			53.70	%			59.55	%
Adjusted operating measures1:
Adjusted net income	$	32,837			$	36,327			$	27,056			$	36,854			$	29,350
Adjusted pre-tax pre-provision earnings	$	48,989			$	46,397			$	41,737			$	42,258			$	43,901
Adjusted diluted EPS		0.53				0.59				0.44				0.62				0.51
Adjusted ROTA2		1.27	%			1.38	%			1.06	%			1.49	%			1.23	%
Adjusted ROTCE2		12.48				13.97				10.01				14.11				11.72
Adjusted efficiency ratio		53.28				53.15				54.86				53.43				51.50
Net adjusted noninterest expense as a percent of average tangible assets2		2.16				2.00				1.99				1.96				1.95
Other data:
Market capitalization3	$	1,858,429			$	2,028,996			$	2,144,586			$	2,070,465			$	1,972,784
Full-time equivalent employees		1,156				1,095				1,066				989				995
Number of ATMs		79				79				79				75				72
Full-service banking offices		58				58				58				54				52
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP.
2The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.
3Common shares outstanding multiplied by closing bid price on last day of each period.

Third Quarter 2022 Strategic Highlights

Capitalizing on Seacoast’s Commitment to Digital Transformation

• During the third quarter, Seacoast launched several new digital banking features by building an even more competitive digital experience while positioning the bank to scale across the state. The addition of an online account opening functionality streamlines account opening for customers and enhanced fraud protection tools for both businesses and consumers provides additional safeguards.
• Seacoast’s online banking features are now available in both English and Spanish, supporting customer preferences and enhancing our ability to bring relationship-based banking to markets across the state.

Driving Sustainable Growth and Expanding our Footprint

• As the Company continues its focus on building the leading commercial bank in Florida, Chris Rolle and Brannon Fitch, previously Regional Presidents in West and North Florida, respectively, have taken on new roles as South Group President and North Group President, responsible for leading the commercial banking teams in their respective markets.
• During the quarter, the Company recruited a well-seasoned and successful C&I focused commercial banking team in North Florida, complementing the Drummond acquisition, and expanding its reach into Ocala and Gainesville. The Company also expanded its commercial banking team in West and Central Florida. Additionally, well-seasoned successful treasury talent was added to the franchise in multiple markets, supporting the Company’s successful strategy of banking middle market operating companies.
• The Company completed the acquisition of Apollo Bancshares, Inc. on October 7, 2022, adding meaningful scale in Miami-Dade county and a growth-oriented team with deep local relationships. The technology conversion went extremely well, and the Miami-Dade county team is now fully focused on growing the franchise.
• Also on October 7, 2022, the Company completed the acquisition of Drummond Bancshares, Inc. Drummond is a 32 year-old institution with a seasoned, consistently profitable franchise. Its low-cost core deposits are driven by deep customer loyalty, and the acquisition adds presence in the rapidly growing North Florida market. As of September 30, 2022, Drummond’s demand deposits represented 78% of its total deposits.
• The upcoming acquisition of Professional Holding Corp. expands the Company’s presence in the tri-county South Florida area, with a relationship-driven team focused on local businesses. The acquisition will further enhance Seacoast’s branch network and add scarcity value in a robust banking market.
  

Scaling and Evolving Our Culture

• Seacoast has been recognized by the Human Rights Foundation for the third consecutive year, earning a perfect score for Workplace Equality in the 2022 Corporate Equality index.
• For the second year in a row, Seacoast is thrilled to be named one of the Orlando Business Journal's 2022 Best Places to Work, which highlights our commitment to employees’ well-being, as well as our numerous diversity and inclusion initiatives.

OTHER INFORMATION

Conference Call Information
Seacoast will host a conference call on October 28, 2022 at 10:00 a.m. (Eastern Time) to discuss the third quarter 2022 earnings results and business trends. Investors may call in (toll-free) by dialing (866) 374-5140 (passcode: 6944 8197#; host: Charles Shaffer). Charts will be used during the conference call and may be accessed at Seacoast's website at www.SeacoastBanking.com by selecting "Presentations" under the heading "News/Events." A replay of the call will be available for one month, beginning late afternoon on October 28, 2022, and can be accessed via a link at www.SeacoastBanking.com under the heading “Corporate Information,” using the passcode EV00136823.

Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast's website at www.SeacoastBanking.com. The link is located under the heading “Corporate Information.” Beginning late afternoon on October 28, 2022, an archived version of the webcast can be accessed from this same subsection of the website. The archived webcast will be available for one year.

About Seacoast Banking Corporation of Florida (NASDAQ: SBCF)
Seacoast Banking Corporation of Florida (NASDAQ: SBCF) is one of the largest community banks headquartered in Florida with approximately $10.3 billion in assets and $8.8 billion in deposits as of September 30, 2022. Seacoast provides integrated financial services including commercial and consumer banking, wealth management, and mortgage services to customers at over 50 full-service branches across Florida, and through advanced mobile and online banking solutions. Seacoast National Bank is the wholly-owned subsidiary bank of Seacoast Banking Corporation of Florida. For more information about Seacoast, visit www.SeacoastBanking.com.

Additional Information

Seacoast has filed a registration statement on Form S-4 with the United States Securities and Exchange Commission (the "SEC") in connection with the proposed merger of Professional Holding Corp. and Professional Bank with and into Seacoast and Seacoast National Bank, respectively. The registration statement in connection with the merger includes a proxy statement of Professional Holding Corp. and a prospectus of Seacoast. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. WE URGE INVESTORS TO READ THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE MERGERS OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT/PROSPECTUS BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.

Investors may obtain these documents free of charge at the SEC’s website (www.sec.gov). In addition, documents filed with the SEC by Seacoast will be available free of charge by contacting Investor Relations at (772) 288-6085.

Professional Holding Corp. and Professional Bank, their directors, executive officers, other members of management, and employees may be considered participants in the solicitation of proxies in connection with the proposed mergers with and into Seacoast and Seacoast National Bank. Information regarding the participants in the proxy solicitation of Professional Holding Corp. and a description of its direct and indirect interests, by security holdings or otherwise, is contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC.

Cautionary Notice Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, cost savings, enhanced revenues, economic and seasonal conditions in the Company’s markets, and improvements to reported earnings that may be realized from cost controls, tax law changes, new initiatives and for integration of banks that the Company has acquired, including Apollo Bancshares, Inc. and Drummond Banking Company, or expects to acquire, including Professional Holding Corp. as well as statements with respect to Seacoast's objectives, strategic plans, expectations and intentions and other statements that are not historical facts, any of which may be impacted by the COVID-19 pandemic and any variants thereof and related effects on the U.S. economy. Actual results may differ from those set forth in the forward-looking statements.

Forward-looking statements include statements with respect to the Company’s beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates and intentions about future performance and involve known and unknown risks, uncertainties and other factors, which may be beyond the Company’s control, and which may cause the actual results, performance or achievements of Seacoast to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. You should not expect the Company to update any forward-looking statements.

All statements other than statements of historical fact could be forward-looking statements. You can identify these forward-looking statements through the use of words such as "may", "will", "anticipate", "assume", "should", "support", "indicate", "would", "believe", "contemplate", "expect", "estimate", "continue", "further", "plan", "point to", "project", "could", "intend", "target" or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the effects of future economic and market conditions, including seasonality, and the risk of economic recession; the adverse impact of COVID-19 (economic and otherwise) on the Company and its customers, counterparties, employees, and third-party service providers, and the adverse impacts to our business, financial position, results of operations and prospects; government or regulatory responses to the COVID-19 pandemic; governmental monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve, as well as legislative, tax and regulatory changes, including those that impact the money supply and inflation; changes in accounting policies, rules and practices, including the impact of the adoption of the current expected credit losses (“CECL”) methodology; the risks of changes in interest rates on the level and composition of deposits, loan demand, liquidity and the values of loan collateral, securities, and interest rate sensitive assets and liabilities; interest rate risks, sensitivities and the shape of the yield curve; uncertainty related to the impact of LIBOR calculations on securities, loans and debt; changes in borrower credit risks and payment behaviors including as a result of the financial impact of COVID-19; changes in retail distribution strategies, customer preferences and behavior (including as a result of economic factors); changes in the availability and cost of credit and capital in the financial markets; changes in the prices, values and sales volumes of residential and commercial real estate; our ability to comply with any regulatory requirements; the effects of problems encountered by other financial institutions that adversely affect Seacoast or the banking industry; the Company’s concentration in commercial real estate loans and in real estate collateral in Florida; inaccuracies or other failures from the use of models, including the failure of assumptions and estimates, as well as differences in, and changes to, economic, market and credit conditions; the impact on the valuation of Seacoast’s investments due to market volatility or counterparty payment risk, as well as the effect of a fall in stock market prices on our fee income from our brokerage and wealth management businesses; statutory and regulatory dividend restrictions; increases in regulatory capital requirements for banking organizations generally; the risks of mergers, acquisitions and divestitures, including Seacoast’s ability to continue to identify acquisition targets, successfully acquire and integrate desirable financial institutions and realize expected revenues and revenue synergies; changes in technology or products that may be more difficult, costly, or less effective than anticipated; the Company’s ability to identify and address increased cybersecurity risks, including as a result of employees working remotely; inability of Seacoast’s risk management framework to manage risks associated with the Company’s business; dependence on key suppliers or vendors to obtain equipment or services for the business on acceptable terms, including the impact of supply chain disruptions; reduction in or the termination of Seacoast’s ability to use the online- or mobile-based platform that is critical to the Company’s business growth strategy; the effects of war or other conflicts, including the impacts related to or resulting from Russia’s military action in Ukraine, acts of terrorism, natural disasters, health emergencies, epidemics or pandemics, or other catastrophic events that may affect general economic conditions; unexpected outcomes of and the costs associated with, existing or new litigation involving the Company, including as a result of the Company’s participation in the Paycheck Protection Program (“PPP”); Seacoast’s ability to maintain adequate internal controls over financial reporting; potential claims, damages, penalties, fines and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions; the risks that deferred tax assets could be reduced if estimates of future taxable income from the Company’s operations and tax planning strategies are less than currently estimated and sales of capital stock could trigger a reduction in the amount of net operating loss carryforwards that the Company may be able to utilize for income tax purposes; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, non-bank financial technology providers, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in the Company’s market areas and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the Internet; the failure of assumptions underlying the establishment of reserves for possible credit losses.

The risks relating to the mergers of Apollo Bancshares, Inc., Drummond Banking Company and Professional Holding Corp. includes, without limitation: the diversion of management's time on issues related to the mergers; unexpected transaction costs, including the costs of integrating operations; the risks that the businesses will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; the potential failure to fully or timely realize expected revenues and revenue synergies, including as the result of revenues following the mergers being lower than expected; the risk of deposit and customer attrition; any changes in deposit mix; unexpected operating and other costs, which may differ or change from expectations; the risks of customer and employee loss and business disruptions, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures and solicitations of customers by competitors; as well as the difficulties and risks inherent with entering new markets.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in the Company’s annual report on Form 10-K for the year ended December 31, 2021 and quarterly reports on Form 10-Q for the quarters ended March 31, 2022 and June 30, 2022 under "Special Cautionary Notice Regarding Forward-Looking Statements" and "Risk Factors", and otherwise in the Company’s SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at www.sec.gov.

FINANCIAL HIGHLIGHTS								(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	Quarterly Trends																				Nine Months Ended
(Amounts in thousands, except ratios and per share data)	3Q'22				2Q'22				1Q'22				4Q'21				3Q'21				3Q'22				3Q'21
Summary of Earnings
Net income	$	29,237			$	32,755			$	20,588			$	36,330			$	22,944			$	82,580			$	88,073
Adjusted net income1		32,837				36,327				27,056				36,854				29,350				96,220				98,098
Net interest income2		88,399				81,764				76,639				72,412				71,455				246,802				204,129
Net interest margin2,3		3.67	%			3.38	%			3.25	%			3.16	%			3.22	%			3.44	%			3.32	%
Pre-tax pre-provision earnings1		43,143				42,580				33,095				40,855				35,215				118,818				108,978
Adjusted pre-tax pre-provision earnings1		48,989				46,397				41,737				42,258				43,901				137,123				122,303
Performance Ratios
Return on average assets-GAAP basis3		1.10	%			1.21	%			0.79	%			1.43	%			0.93	%			1.03	%			1.29	%
Return on average tangible assets-GAAP basis3,4		1.17				1.29				0.85				1.51				1.00				1.11				1.37
Adjusted return on average tangible assets1,3,4		1.27				1.38				1.06				1.49				1.23				1.24				1.48
Net adjusted noninterest expense to average tangible assets1,3,4		2.16				2.00				1.99				1.96				1.95				2.05				2.03
Return on average shareholders' equity-GAAP basis3		8.60				9.73				5.96				11.06				7.29				8.08				9.93
Return on average tangible common equity-GAAP basis3,4		11.53				13.01				8.02				14.29				9.56				10.82				12.89
Adjusted return on average tangible common equity1,3,4		12.48				13.97				10.01				14.11				11.72				12.13				13.91
Efficiency ratio5		57.13				56.22				62.33				53.70				59.55				58.45				55.99
Adjusted efficiency ratio1		53.28				53.15				54.86				53.43				51.50				53.73				52.29
Noninterest income to total revenue (excluding securities gains/losses)		15.72				17.45				17.14				20.89				21.09				16.74				20.40
Tangible common equity to tangible assets4		9.79				9.74				9.89				11.09				10.62				9.79				10.62
Average loan-to-deposit ratio		73.90				70.60				71.25				70.29				69.97				71.92				74.86
End of period loan-to-deposit ratio		76.35				71.34				70.01				73.84				71.46				76.35				71.46
Per Share Data
Net income diluted-GAAP basis	$	0.47			$	0.53			$	0.33			$	0.62			$	0.40			$	1.33			$	1.56
Net income basic-GAAP basis		0.48				0.53				0.34				0.62				0.40				1.35				1.57
Adjusted earnings1		0.53				0.59				0.44				0.62				0.51				1.56				1.74
Book value per share common		20.95				21.65				22.15				22.40				22.12				20.95				22.12
Tangible book value per share		15.98				16.66				17.12				17.84				17.52				15.98				17.52
Cash dividends declared		0.17				0.17				0.13				0.13				0.13				0.47				0.26
1Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP.
2Calculated on a fully taxable equivalent basis using amortized cost.
3These ratios are stated on an annualized basis and are not necessarily indicative of future periods.
4The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.
5Defined as noninterest expense less amortization of intangibles and gains, losses, and expenses on foreclosed properties divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains and losses).

CONDENSED CONSOLIDATED STATEMENTS OF INCOME								(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	Quarterly Trends																				Nine Months Ended
(Amounts in thousands, except per share data)	3Q'22				2Q'22				1Q'22				4Q'21				3Q'21				3Q'22				3Q'21
Interest on securities:
Taxable	$	15,653			$	12,387			$	10,041			$	8,574			$	7,775			$	38,081			$	20,632
Nontaxable		138				138				140				139				143				416				438
Fees on PPP loans		295				676				1,373				3,011				5,218				2,344				14,485
Interest on PPP loans		25				65				150				341				699				240				3,446
Interest and fees on loans - excluding PPP loans		73,650				68,566				65,595				61,049				58,507				207,811				169,139
Interest on federal funds sold and other investments		1,643				1,917				933				828				867				4,493				2,162
Total Interest Income		91,404				83,749				78,232				73,942				73,209				253,385				210,302
Interest on deposits		1,623				994				767				711				849				3,384				2,894
Interest on time certificates		380				436				468				494				583				1,284				2,294
Interest on borrowed money		1,117				672				475				448				453				2,264				1,378
Total Interest Expense		3,120				2,102				1,710				1,653				1,885				6,932				6,566
Net Interest Income		88,284				81,647				76,522				72,289				71,324				246,453				203,736
Provision for credit losses		4,676				822				6,556				(3,942	)			5,091				12,054				(5,479	)
Net Interest Income After Provision for Credit Losses		83,608				80,825				69,966				76,231				66,233				234,399				209,215
Noninterest income:
Service charges on deposit accounts		3,504				3,408				2,801				2,606				2,495				9,713				7,171
Interchange income		4,138				4,255				4,128				4,135				4,131				12,521				12,096
Wealth management income		2,732				2,774				2,659				2,356				2,562				8,165				7,272
Mortgage banking fees		434				932				1,686				2,030				2,550				3,052				9,752
Marine finance fees		209				312				191				147				152				712				518
SBA gains		108				473				156				200				812				737				1,331
BOLI income		1,363				1,349				1,334				1,295				1,128				4,046				2,859
Other		3,977				3,761				2,870				6,316				5,228				10,608				11,221
		16,465				17,264				15,825				19,085				19,058				49,554				52,220
Securities losses, net		(362	)			(300	)			(452	)			(379	)			(30	)			(1,114	)			(199	)
Total Noninterest Income		16,103				16,964				15,373				18,706				19,028				48,440				52,021
Noninterest expenses:
Salaries and wages		28,420				28,056				28,219				25,005				27,919				84,695				72,278
Employee benefits		4,074				4,151				5,501				4,763				4,177				13,726				13,110
Outsourced data processing costs		5,393				6,043				6,156				5,165				5,610				17,592				14,754
Telephone / data lines		973				908				733				790				810				2,614				2,433
Occupancy		5,046				4,050				3,986				3,500				3,541				13,082				10,640
Furniture and equipment		1,462				1,588				1,426				1,403				1,567				4,476				3,987
Marketing		1,461				1,882				1,171				1,060				1,353				4,514				3,523
Legal and professional fees		3,794				2,946				4,789				2,461				4,151				11,529				8,915
FDIC assessments		760				699				789				713				651				2,248				1,692
Amortization of intangibles		1,446				1,446				1,446				1,304				1,306				4,338				3,729
Foreclosed property expense and net (gain) loss on sale		9				(968	)			(164	)			(175	)			66				(1,123	)			(89	)
Provision for credit losses on unfunded commitments		1,015				—				142				—				133				1,157				133
Other		7,506				5,347				4,723				4,274				3,984				17,576				12,067
Total Noninterest Expense		61,359				56,148				58,917				50,263				55,268				176,424				147,172
Income Before Income Taxes		38,352				41,641				26,422				44,674				29,993				106,415				114,064
Income taxes		9,115				8,886				5,834				8,344				7,049				23,835				25,991
Net Income	$	29,237			$	32,755			$	20,588			$	36,330			$	22,944			$	82,580			$	88,073
Per share of common stock:
Net income diluted	$	0.47			$	0.53			$	0.33			$	0.62			$	0.40			$	1.33			$	1.56
Net income basic		0.48				0.53				0.34				0.62				0.40				1.35				1.57
Cash dividends declared		0.17				0.17				0.13				0.13				0.13				0.47				0.26
Average diluted shares outstanding		61,961				61,923				61,704				59,016				57,645				61,867				56,441
Average basic shares outstanding		61,442				61,409				61,127				58,462				57,148				61,327				55,954

CONDENSED CONSOLIDATED BALANCE SHEETS										(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
		September 30,				June 30,				March 31,				December 31,				September 30,
(Amounts in thousands)			2022				2022				2022				2021				2021
Assets
Cash and due from banks		$	176,463			$	363,343			$	351,128			$	238,750			$	199,460
Interest bearing deposits with other banks			42,152				538,025				871,387				498,979				1,028,235
Total Cash and Cash Equivalents			218,615				901,368				1,222,515				737,729				1,227,695
Time deposits with other banks			4,481				4,730				5,975				—				750
Debt Securities:
Available for sale (at fair value)			1,860,734				1,800,791				1,706,619				1,644,319				1,546,155
Held to maturity (at amortized cost)			774,706				794,785				747,004				638,640				526,502
Total Debt Securities			2,635,440				2,595,576				2,453,623				2,282,959				2,072,657
Loans held for sale			1,620				14,205				20,615				31,791				49,597
Loans			6,690,845				6,541,548				6,451,217				5,925,029				5,905,884
Less: Allowance for credit losses			(95,329	)			(90,769	)			(89,838	)			(83,315	)			(87,823	)
Net Loans			6,595,516				6,450,779				6,361,379				5,841,714				5,818,061
Bank premises and equipment, net			81,648				74,784				74,617				72,404				71,250
Other real estate owned			2,419				2,419				11,567				13,618				13,628
Goodwill			286,606				286,606				286,606				252,154				252,154
Other intangible assets, net			18,583				20,062				21,549				14,845				16,153
Bank owned life insurance			209,087				207,724				206,375				205,041				193,747
Net deferred tax assets			83,139				60,080				47,222				27,321				24,187
Other assets			208,081				193,371				192,774				201,857				153,619
Total Assets		$	10,345,235			$	10,811,704			$	10,904,817			$	9,681,433			$	9,893,498
Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest demand		$	3,529,489			$	3,593,201			$	3,522,700			$	3,075,534			$	3,086,466
Interest-bearing demand			2,170,251				2,269,148				2,253,562				1,890,212				1,845,165
Savings			938,081				946,738				937,839				895,019				834,309
Money market			1,700,737				1,911,847				1,999,027				1,651,881				1,951,639
Other time certificates			312,840				350,571				397,491				404,601				437,973
Brokered time certificates			—				—				—				—				20,000
Time certificates of more than $250,000			114,016				117,448				133,149				150,342				158,620
Total Deposits			8,765,414				9,188,953				9,243,768				8,067,589				8,334,172
Securities sold under agreements to repurchase			94,191				110,578				120,922				121,565				105,548
Subordinated debt			71,857				71,786				71,716				71,646				71,576
Other liabilities			125,971				110,812				112,126				109,897				91,682
Total Liabilities			9,057,433				9,482,129				9,548,532				8,370,697				8,602,978
Shareholders' Equity
Common stock			6,148				6,141				6,124				5,850				5,835
Additional paid in capital			1,068,241				1,065,167				1,062,462				963,851				959,644
Retained earnings			412,166				393,431				371,192				358,598				329,918
Treasury stock			(11,539	)			(11,632	)			(10,459	)			(10,569	)			(10,146	)
			1,475,016				1,453,107				1,429,319				1,317,730				1,285,251
Accumulated other comprehensive (loss) income, net			(187,214	)			(123,532	)			(73,034	)			(6,994	)			5,269
Total Shareholders' Equity			1,287,802				1,329,575				1,356,285				1,310,736				1,290,520
Total Liabilities & Shareholders' Equity		$	10,345,235			$	10,811,704			$	10,904,817			$	9,681,433			$	9,893,498
Common shares outstanding			61,476				61,410				61,239				58,504				58,349

CONSOLIDATED QUARTERLY FINANCIAL DATA									(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
(Amounts in thousands)	3Q'22				2Q'22				1Q'22				4Q'21				3Q'21
Credit Analysis
Net charge-offs (recoveries) - non-acquired loans	$	129			$	(75	)		$	72			$	541			$	198
Net charge-offs (recoveries) - acquired loans		(26	)			(49	)			7				29				1,234
Total Net Charge-offs (Recoveries)		103				(124	)			79				570				1,432
Net charge-offs (recoveries) to average loans - non-acquired loans		0.01	%			—	%			—	%			0.04	%			0.01	%
Net charge-offs (recoveries) to average loans - acquired loans		—				—				—				—				0.09
Total Net Charge-offs (Recoveries) to Average Loans		0.01				—				—				0.04				0.10
Allowance for credit losses - non-acquired loans	$	82,980			$	70,215			$	67,261			$	64,710			$	64,740
Allowance for credit losses - acquired loans		12,349				20,554				22,577				18,605				23,083
Total Allowance for Credit Losses	$	95,329			$	90,769			$	89,838			$	83,315			$	87,823
Non-acquired loans at end of period	$	5,651,741			$	5,389,405			$	5,169,973			$	4,860,171			$	4,608,801
Acquired loans at end of period		1,033,810				1,134,940				1,241,988				973,751				1,106,481
Paycheck Protection Program loans at end of period		5,294				17,203				39,256				91,107				190,602
Total Loans	$	6,690,845			$	6,541,548			$	6,451,217			$	5,925,029			$	5,905,884
Non-acquired loans allowance for credit losses to non-acquired loans at end of period		1.47	%			1.30	%			1.30	%			1.33	%			1.40	%
Total allowance for credit losses to total loans at end of period		1.42				1.39				1.39				1.41				1.49
Total allowance for credit losses to total loans, excluding PPP loans		1.43				1.39				1.40				1.43				1.54
Purchase discount on acquired loans at end of period		1.81				1.84				1.89				2.27				2.27
End of Period
Nonperforming loans	$	21,464			$	26,442			$	26,209			$	30,598			$	32,612
Other real estate owned		109				109				9,256				12,223				11,843
Properties previously used in bank operations included in other real estate owned		2,310				2,310				2,310				1,395				1,785
Total Nonperforming Assets	$	23,883			$	28,861			$	37,775			$	44,216			$	46,240
Accruing troubled debt restructures (TDRs)	$	4,149			$	4,022			$	4,454			$	3,917			$	4,047
Nonperforming Loans to Loans at End of Period		0.32	%			0.40	%			0.41	%			0.52	%			0.55	%
Nonperforming Assets to Total Assets at End of Period		0.23				0.27				0.35				0.46				0.47
	September 30,				June 30,				March 31,				December 31,				September 30,
Loans		2022				2022				2022				2021				2021
Construction and land development	$	361,913			$	350,025			$	259,421			$	230,824			$	227,459
Commercial real estate - owner occupied		1,253,459				1,254,343				1,284,515				1,197,774				1,201,336
Commercial real estate - non-owner occupied1		2,107,614				1,972,540				1,966,150				1,736,439				1,673,587
Residential real estate1		1,599,765				1,647,465				1,599,645				1,425,354				1,467,329
Commercial and financial		1,182,384				1,124,771				1,132,506				1,069,356				982,552
Consumer		180,416				175,201				169,724				174,175				163,019
Paycheck Protection Program		5,294				17,203				39,256				91,107				190,602
Total Loans	$	6,690,845			$	6,541,548			$	6,451,217			$	5,925,029			$	5,905,884
1In 3Q'22, $100 million in loans to commercial borrowers collateralized by residential properties were reclassified from "Residential real estate" to "Commercial real estate - non-owner occupied."

AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES1														(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	3Q'22										2Q'22										3Q'21
(Amounts in thousands)	Average Balance				Interest			Yield/ Rate			Average Balance				Interest			Yield/ Rate			Average Balance				Interest			Yield/ Rate
Assets
Earning assets:
Securities:
Taxable	$	2,665,104			$	15,653		2.35	%		$	2,517,879			$	12,387		1.97	%		$	1,971,520			$	7,775		1.58	%
Nontaxable		22,064				174		3.15				22,443				175		3.12				25,311				181		2.86
Total Securities		2,687,168				15,827		2.36				2,540,322				12,562		1.98				1,996,831				7,956		1.59
Federal funds sold		203,815				1,062		2.07				644,144				1,281		0.80				1,056,691				406		0.15
Other investments		45,193				581		5.10				46,257				636		5.51				35,306				461		5.18
Loans excluding PPP loans		6,597,828				73,730		4.43				6,454,444				68,647		4.27				5,422,350				58,600		4.29
PPP loans		10,114				320		12.54				26,322				741		11.29				281,724				5,917		8.33
Total Loans		6,607,942				74,050		4.45				6,480,766				69,388		4.29				5,704,074				64,517		4.49
Total Earning Assets		9,544,118				91,520		3.80				9,711,489				83,867		3.46				8,792,902				73,340		3.31
Allowance for credit losses		(91,348	)									(90,242	)									(88,412	)
Cash and due from banks		331,947										389,695										386,781
Premises and equipment		76,357										74,614										70,667
Intangible assets		305,935										307,411										254,980
Bank owned life insurance		208,193										206,839										164,879
Other assets		210,136										240,712										171,937
Total Assets	$	10,585,338									$	10,840,518									$	9,753,734
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand	$	2,215,899			$	757		0.14	%		$	2,262,408			$	293		0.05	%		$	1,891,092			$	219		0.05	%
Savings		944,128				65		0.03				962,264				64		0.03				842,018				65		0.03
Money market		1,806,014				802		0.18				1,938,421				637		0.13				1,860,386				565		0.12
Time deposits		445,840				380		0.34				496,186				436		0.35				572,661				583		0.40
Securities sold under agreements to repurchase		111,902				309		1.10				120,437				94		0.31				120,507				35		0.12
Other borrowings		71,810				808		4.46				71,740				579		3.24				71,530				418		2.32
Total Interest-Bearing Liabilities		5,595,593				3,121		0.22				5,851,456				2,103		0.14				5,358,194				1,885		0.14
Noninterest demand		3,529,844										3,520,700										2,985,582
Other liabilities		110,426										117,794										161,411
Total Liabilities		9,235,863										9,489,950										8,505,187
Shareholders' equity		1,349,475										1,350,568										1,248,547
Total Liabilities & Equity	$	10,585,338									$	10,840,518									$	9,753,734
Cost of deposits								0.09	%									0.06	%									0.07	%
Interest expense as a % of earning assets								0.13	%									0.09	%									0.09	%
Net interest income as a % of earning assets					$	88,399		3.67	%						$	81,764		3.38	%						$	71,455		3.22	%
1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.
Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.

AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES1										(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	Nine Months Ended September 30, 2022										Nine Months Ended September 30, 2021
	Average							Yield/			Average							Yield/
(Amounts in thousands, except ratios)	Balance				Interest			Rate			Balance				Interest			Rate
Assets
Earning assets:
Securities:
Taxable	$	2,530,742			$	38,081		2.01	%		$	1,718,671			$	20,632		1.60	%
Nontaxable		22,842				526		3.07				25,606				554		2.88
Total Securities		2,553,584				38,607		2.02				1,744,277				21,186		1.62
Federal funds sold		526,890				2,693		0.68				725,013				706		0.13
Other investments		45,483				1,800		5.29				75,826				1,456		2.57
Loans excluding PPP loans		6,444,253				208,052		4.32				5,222,629				169,417		4.34
PPP loans		32,597				2,584		10.60				464,397				17,930		5.16
Total Loans		6,476,850				210,636		4.35				5,687,026				187,347		4.40
Total Earning Assets		9,602,807				253,736		3.53				8,232,142				210,695		3.42
Allowance for credit losses		(89,700	)									(88,717	)
Cash and due from banks		362,369										323,693
Premises and equipment		75,617										71,644
Intangible assets		305,895										242,820
Bank owned life insurance		206,854										143,601
Other assets		220,790										167,775
Total Assets	$	10,684,632									$	9,092,958
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand	$	2,192,331			$	1,240		0.08	%		$	1,728,985			$	712		0.06	%
Savings		943,982				194		0.03				785,447				320		0.05
Money market		1,906,407				1,951		0.14				1,736,519				1,862		0.14
Time deposits		500,482				1,284		0.34				605,269				2,294		0.51
Securities sold under agreements to repurchase		116,805				442		0.51				116,304				112		0.13
Other borrowings		71,741				1,823		3.40				71,460				1,266		2.37
Total Interest-Bearing Liabilities		5,731,751				6,934		0.16				5,043,984				6,566		0.17
Noninterest demand		3,462,931										2,741,115
Other liabilities		123,279										122,329
Total Liabilities		9,317,961										7,907,428
Shareholders' equity		1,366,672										1,185,530
Total Liabilities & Equity	$	10,684,632									$	9,092,958
Cost of deposits								0.07	%									0.09	%
Interest expense as a % of earning assets								0.10	%									0.11	%
Net interest income as a % of earning assets					$	246,802		3.44	%						$	204,129		3.32	%
1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.
Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.

CONSOLIDATED QUARTERLY FINANCIAL DATA							(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
		September 30,			June 30,			March 31,			December 31,			September 30,
(Amounts in thousands)		2022			2022			2022			2021			2021
Customer Relationship Funding
Noninterest demand
Commercial		$	2,827,591		$	2,945,445		$	2,939,595		$	2,477,111		$	2,535,922
Retail			447,848			464,214			458,809			458,626			416,779
Public funds			210,662			143,075			86,419			107,523			84,337
Other			43,388			40,467			37,877			32,274			49,428
Total Noninterest Demand			3,529,489			3,593,201			3,522,700			3,075,534			3,086,466
Interest-bearing demand
Commercial			759,286			769,948			610,109			497,466			554,366
Retail			1,199,112			1,207,698			1,392,490			1,144,635			1,069,668
Brokered			81,799			—			—			—			—
Public funds			130,054			291,502			250,963			248,111			221,131
Total Interest-Bearing Demand			2,170,251			2,269,148			2,253,562			1,890,212			1,845,165
Total transaction accounts
Commercial			3,586,877			3,715,393			3,549,704			2,974,577			3,090,288
Retail			1,646,960			1,671,912			1,851,299			1,603,261			1,486,447
Public funds			340,716			434,577			337,382			355,634			305,468
Other			43,388			40,467			37,877			32,274			49,428
Total Transaction Accounts			5,617,941			5,862,349			5,776,262			4,965,746			4,931,631
Savings			938,081			946,738			937,839			895,019			834,309
Money market
Commercial			788,009			819,452			856,117			732,639			827,901
Retail			857,914			914,918			931,702			840,054			834,628
Brokered			—			106,823			126,168			8,007			196,548
Public funds			54,814			70,654			85,040			71,181			92,562
Total Money Market			1,700,737			1,911,847			1,999,027			1,651,881			1,951,639
Brokered time certificates			—			—			—			—			20,000
Other time certificates			426,856			468,019			530,640			554,943			596,593
			426,856			468,019			530,640			554,943			616,593
Total Deposits		$	8,683,615		$	9,188,953		$	9,243,768		$	8,067,589		$	8,334,172
Customer sweep accounts		$	94,191		$	110,578		$	120,922		$	121,565		$	105,548

Explanation of Certain Unaudited Non-GAAP Financial Measures

This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance. The Company believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance and if not provided would be requested by the investor community. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might define or calculate these measures differently. The Company provides reconciliations between GAAP and these non-GAAP measures. These disclosures should not be considered an alternative to GAAP.

GAAP TO NON-GAAP RECONCILIATION								(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	Quarterly Trends																				Nine Months Ended
(Amounts in thousands, except per share data)	3Q'22				2Q'22				1Q'22				4Q'21				3Q'21				3Q'22				3Q'21
Net Income	$	29,237			$	32,755			$	20,588			$	36,330			$	22,944			$	82,580			$	88,073
Total noninterest income		16,103				16,964				15,373				18,706				19,028				48,440				52,021
Securities losses (gains), net		362				300				452				379				30				1,114				199
Gain on sale of domain name (included in other income)		—				—				—				(755	)			—				—				—
Total Adjustments to Noninterest Income		362				300				452				(376	)			30				1,114				199
Total Adjusted Noninterest Income		16,465				17,264				15,825				18,330				19,058				49,554				52,220
Total noninterest expense		61,359				56,148				58,917				50,263				55,268				176,424				147,172
Merger related charges		(2,054	)			(3,039	)			(6,692	)			(482	)			(6,281	)			(11,785	)			(7,371	)
Amortization of intangibles		(1,446	)			(1,446	)			(1,446	)			(1,304	)			(1,306	)			(4,338	)			(3,729	)
Branch reductions and other expense initiatives		(960	)			—				(74	)			(168	)			(870	)			(1,034	)			(1,982	)
Total Adjustments to Noninterest Expense		(4,460	)			(4,485	)			(8,212	)			(1,954	)			(8,457	)			(17,157	)			(13,082	)
Total Adjusted Noninterest Expense		56,899				51,663				50,705				48,309				46,811				159,267				134,090
Income Taxes		9,115				8,886				5,834				8,344				7,049				23,835				25,991
Tax effect of adjustments		1,222				1,213				2,196				280				2,081				4,631				3,256
Effect of change in corporate tax rate on deferred tax assets		—				—				—				774				—				—				—
Total Adjustments to Income Taxes		1,222				1,213				2,196				1,054				2,081				4,631				3,256
Adjusted Income Taxes		10,337				10,099				8,030				9,398				9,130				28,466				29,247
Adjusted Net Income	$	32,837			$	36,327			$	27,056			$	36,854			$	29,350			$	96,220			$	98,098
Earnings per diluted share, as reported	$	0.47			$	0.53			$	0.33			$	0.62			$	0.40			$	1.33			$	1.56
Adjusted Earnings per Diluted Share		0.53				0.59				0.44				0.62				0.51				1.56				1.74
Average diluted shares outstanding		61,961				61,923				61,704				59,016				57,645				61,867				56,441
Adjusted Noninterest Expense	$	56,899			$	51,663			$	50,705			$	48,309			$	46,811			$	159,267			$	134,090
Provision for credit losses on unfunded commitments		(1,015	)			—				(142	)			—				(133	)			(1,157	)			(133	)
Foreclosed property expense and net gain / (loss) on sale		(9	)			968				164				175				(66	)			1,123				89
Net Adjusted Noninterest Expense	$	55,875			$	52,631			$	50,727			$	48,484			$	46,612			$	159,233			$	134,046
Revenue	$	104,387			$	98,611			$	91,895			$	90,995			$	90,352			$	294,893			$	255,757
Total Adjustments to Revenue		362				300				452				(376	)			30				1,114				199
Impact of FTE adjustment		115				117				117				123				131				349				393
Adjusted Revenue on a fully taxable equivalent basis	$	104,864			$	99,028			$	92,464			$	90,742			$	90,513			$	296,356			$	256,349
Adjusted Efficiency Ratio		53.28	%			53.15	%			54.86	%			53.43	%			51.50	%			53.73	%			52.29	%
Net Interest Income	$	88,284			$	81,647			$	76,522			$	72,289			$	71,324			$	246,453			$	203,736
Impact of FTE adjustment		115				117				117				123				131				349				393
Net Interest Income including FTE adjustment	$	88,399			$	81,764			$	76,639			$	72,412			$	71,455			$	246,802			$	204,129
Total noninterest income		16,103				16,964				15,373				18,706				19,028				48,440				52,021
Total noninterest expense		61,359				56,148				58,917				50,263				55,268				176,424				147,172
Pre-Tax Pre-Provision Earnings	$	43,143			$	42,580			$	33,095			$	40,855			$	35,215			$	118,818			$	108,978
Total Adjustments to Noninterest Income		362				300				452				(376	)			30				1,114				199
Total Adjustments to Noninterest Expense		(5,484	)			(3,517	)			(8,190	)			(1,779	)			(8,656	)			(17,191	)			(13,126	)
Adjusted Pre-Tax Pre-Provision Earnings	$	48,989			$	46,397			$	41,737			$	42,258			$	43,901			$	137,123			$	122,303
Average Assets	$	10,585,338			$	10,840,518			$	10,628,516			$	10,061,382			$	9,753,734			$	10,684,632			$	9,092,958
Less average goodwill and intangible assets		(305,935	)			(307,411	)			(304,321	)			(267,692	)			(254,980	)			(305,895	)			(242,820	)
Average Tangible Assets	$	10,279,403			$	10,533,107			$	10,324,195			$	9,793,690			$	9,498,754			$	10,378,737			$	8,850,138
Return on Average Assets (ROA)		1.10	%			1.21	%			0.79	%			1.43	%			0.93	%			1.03	%			1.29	%
Impact of removing average intangible assets and related amortization		0.07				0.08				0.06				0.08				0.07				0.08				0.08
Return on Average Tangible Assets (ROTA)		1.17				1.29				0.85				1.51				1.00				1.11				1.37
Impact of other adjustments for Adjusted Net Income		0.10				0.09				0.21				(0.02	)			0.23				0.13				0.11
Adjusted Return on Average Tangible Assets		1.27				1.38				1.06				1.49				1.23				1.24				1.48
Average Shareholders' Equity	$	1,349,475			$	1,350,568			$	1,400,535			$	1,303,686			$	1,248,547			$	1,366,672			$	1,185,530
Less average goodwill and intangible assets		(305,935	)			(307,411	)			(304,321	)			(267,692	)			(254,980	)			(305,895	)			(242,820	)
Average Tangible Equity	$	1,043,540			$	1,043,157			$	1,096,214			$	1,035,994			$	993,567			$	1,060,777			$	942,710
Return on Average Shareholders' Equity		8.60	%			9.73	%			5.96	%			11.06	%			7.29	%			8.08	%			9.93	%
Impact of removing average intangible assets and related amortization		2.93				3.28				2.06				3.23				2.27				2.74				2.96
Return on Average Tangible Common Equity (ROTCE)		11.53				13.01				8.02				14.29				9.56				10.82				12.89
Impact of other adjustments for Adjusted Net Income		0.95				0.96				1.99				(0.18	)			2.16				1.31				1.02
Adjusted Return on Average Tangible Common Equity		12.48				13.97				10.01				14.11				11.72				12.13				13.91
Loan interest income1	$	74,050			$	69,388			$	67,198			$	64,487			$	64,517			$	210,636			$	187,347
Accretion on acquired loans		(2,242	)			(2,720	)			(3,717	)			(3,520	)			(3,483	)			(8,679	)			(9,237	)
Interest and fees on PPP loans		(320	)			(741	)			(1,523	)			(3,352	)			(5,917	)			(2,584	)			(17,930	)
Loan interest income excluding PPP and accretion on acquired loans	$	71,488			$	65,927			$	61,958			$	57,615			$	55,117			$	199,373			$	160,180
Yield on loans1		4.45				4.29				4.30				4.31				4.49				4.35				4.40
Impact of accretion on acquired loans		(0.14	)			(0.16	)			(0.24	)			(0.24	)			(0.24	)			(0.18	)			(0.21	)
Impact of PPP loans		(0.01	)			(0.03	)			(0.06	)			(0.13	)			(0.22	)			(0.03	)			(0.09	)
Yield on loans excluding PPP and accretion on acquired loans		4.30	%			4.10	%			4.00	%			3.94	%			4.03	%			4.14	%			4.10	%
Net Interest Income1	$	88,399			$	81,764			$	76,639			$	72,412			$	71,455			$	246,802			$	204,129
Accretion on acquired loans		(2,242	)			(2,720	)			(3,717	)			(3,520	)			(3,483	)			(8,679	)			(9,237	)
Interest and fees on PPP loans		(320	)			(741	)			(1,523	)			(3,352	)			(5,917	)			(2,584	)			(17,930	)
Net interest income excluding PPP and accretion on acquired loans	$	85,837			$	78,303			$	71,399			$	65,540			$	62,055			$	235,539			$	176,962
Net Interest Margin		3.67				3.38				3.25				3.16				3.22				3.44				3.32
Impact of accretion on acquired loans		(0.09	)			(0.12	)			(0.15	)			(0.15	)			(0.15	)			(0.12	)			(0.15	)
Impact of PPP loans		(0.01	)			(0.02	)			(0.05	)			(0.10	)			(0.18	)			(0.03	)			(0.12	)
Net interest margin excluding PPP and accretion on acquired loans		3.57	%			3.24	%			3.05	%			2.91	%			2.89	%			3.29	%			3.05	%
Security interest income1	$	15,827			$	12,562			$	10,218			$	8,750			$	7,956			$	38,607			$	21,186
Tax equivalent adjustment on securities		(35	)			(36	)			(37	)			(37	)			(38	)			(108	)			(116	)
Security interest income excluding tax equivalent adjustment	$	15,792			$	12,526			$	10,181			$	8,713			$	7,918			$	38,499			$	21,070
Loan interest income1	$	74,050			$	69,388			$	67,198			$	64,487			$	64,517			$	210,636			$	187,347
Tax equivalent adjustment on loans		(80	)			(81	)			(80	)			(86	)			(93	)			(241	)			(277	)
Loan interest income excluding tax equivalent adjustment	$	73,970			$	69,307			$	67,118			$	64,401			$	64,424			$	210,395			$	187,070
Net Interest Income1	$	88,399			$	81,764			$	76,639			$	72,412			$	71,455			$	246,802			$	204,129
Tax equivalent adjustment on securities		(35	)			(36	)			(37	)			(37	)			(38	)			(108	)			(116	)
Tax equivalent adjustment on loans		(80	)			(81	)			(80	)			(86	)			(93	)			(241	)			(277	)
Net interest income excluding tax equivalent adjustment	$	88,284			$	81,647			$	76,522			$	72,289			$	71,324			$	246,453			$	203,736
1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.

Tracey L. Dexter
Chief Financial Officer
Seacoast Banking Corporation of Florida
(772) 403-0461