Seacoast Banking Corporation of Florida ("Seacoast" or the
"Company") (NASDAQ: SBCF) today reported net income in the first
quarter of 2024 of $26.0 million, or $0.31 per diluted share,
compared to $29.5 million, or $0.35 per diluted share in the fourth
quarter of 2023 and $11.8 million, or $0.15 per diluted share in
the first quarter of 2023.
Adjusted net income1 for the first quarter of
2024 was $31.1 million, or $0.37 per diluted share, compared to
$31.4 million, or $0.37 per diluted share in the fourth quarter of
2023 and $23.7 million, or $0.29 per diluted share in the first
quarter of 2023.
For the first quarter of 2024, return on average
tangible assets was 0.89% and return on average tangible
shareholders' equity was 9.55%, compared to 0.99% and 11.22%,
respectively, in the prior quarter, and 0.52% and 5.96%,
respectively, in the prior year quarter. Adjusted return on average
tangible assets1 in the first quarter of 2024 was 1.04% and
adjusted return on average tangible shareholders' equity1 was
11.15%, compared to 1.04% and 11.80%, respectively, in the prior
quarter, and 0.88% and 10.16%, respectively, in the prior year
quarter.
Charles M. Shaffer, Seacoast's Chairman and CEO,
said, “As the complexity of our successful period of sequential
acquisitions falls further in the rearview mirror, I was pleased
with our focus on organic customer acquisition, which resulted in
growth in noninterest-bearing accounts and strong annualized
deposit growth of 8%. Over the past 24 months, we have focused on
acquiring the best banking talent across Florida, and we are now
seeing an accelerated return on that investment. The combination of
strategic investments in talent, marketing, and innovative products
is driving growth across our markets, and we are exiting the first
quarter with robust pipelines across all of our businesses.”
Shaffer added, “We are well positioned at this
point, with the completion of our expense initiative, fortress
balance sheet with industry-leading capital levels, ample
liquidity, and an incredibly engaged and excited banking team, we
are primed to continue to take market share across one of the
strongest markets in the country.”
Financial Results
Income Statement
- Net
income in the first quarter of 2024 was $26.0 million, or
$0.31 per diluted share, compared to $29.5 million, or $0.35 per
diluted share in the fourth quarter of 2023 and $11.8 million, or
$0.15 per diluted share in the first quarter of 2023. Adjusted net
income1 for the first quarter of 2024 was $31.1 million, or $0.37
per diluted share, compared to $31.4 million, or $0.37 per diluted
share, for the prior quarter, and $23.7 million, or $0.29 per
diluted share, for the prior year quarter.
- Net
revenues were $125.6 million in the first quarter of 2024,
a decrease of $2.6 million, or 2%, compared to the prior
quarter, and a decrease of $28.0 million, or 18%, compared to
the prior year quarter. Adjusted net revenues1 were $125.6 million
in the first quarter of 2024, a decrease of $5.2 million, or
4%, compared to the prior quarter, and a decrease of
$26.0 million, or 17%, compared to the prior year
quarter.
- Pre-tax
pre-provision earnings1 were $35.7
million in the first quarter of 2024, a decrease of 15% compared to
the fourth quarter of 2023 and a decrease of 25% compared to the
first quarter of 2023. Adjusted pre-tax pre-provision earnings1
were $42.5 million in the first quarter of 2024, a decrease of
6% compared to the fourth quarter of 2023 and a decrease of 34%
compared to the first quarter of 2023.
- Net
interest income totaled $105.1 million in the first
quarter of 2024, a decrease of $5.7 million, or 5%, compared to the
prior quarter, and a decrease of $26.1 million, or 20%, compared to
the prior year quarter. During the first quarter of 2024, higher
interest expense on deposits reflects growth in deposit balances
and the impact of the continuing elevated rate environment.
Accretion on acquired loans totaled $10.6 million in the first
quarter of 2024, $11.3 million in the fourth quarter of 2023, and
$15.9 million in the first quarter of 2023.
- Net
interest margin decreased 12 basis points to 3.24% in the
first quarter of 2024 compared to 3.36% in the fourth quarter of
2023. Excluding the effects of accretion on acquired loans, net
interest margin decreased 11 basis points to 2.91% in the first
quarter of 2024 compared to 3.02% in the fourth quarter of 2023.
Loan yields were 5.90%, an increase of five basis points from the
prior quarter. The effect on loan yields of accretion of purchase
discounts on acquired loans was an increase of 42 basis points in
the first quarter of 2024, an increase of 45 basis points in the
fourth quarter of 2023 and an increase of 69 basis points in the
first quarter of 2023. Securities yields expanded five basis points
to 3.47%, compared to 3.42% in the prior quarter. The cost of
deposits increased 19 basis points, from 2.00% in the prior
quarter, to 2.19% in the first quarter of 2024. The decline in
margin quarter-over-quarter was driven in part by the success in
growing deposits.
-
Noninterest income totaled $20.5 million in the
first quarter of 2024, an increase of $3.2 million, or 18%,
compared to the prior quarter, and a decrease of $1.9 million, or
9%, compared to the prior year quarter. Changes compared to the
fourth quarter of 2023 included:
- Interchange
income decreased $0.5 million, or 22%, to $1.9 million,
with the prior quarter benefiting from an annual volume-based
incentive earned from the payment network provider.
- The wealth
management division continues to demonstrate success in building
relationships, and during the first quarter of 2024, assets under
management grew $160 million, driving a $0.3 million or
9%, increase in wealth management income. The team enters the
second quarter with a robust pipeline.
- Insurance agency
income increased $0.2 million, or 21%, to $1.3 million,
reflecting a record quarter for the agency.
- Other income
increased $0.5 million, or 12%, to $5.2 million, with
increases in marine and aircraft loan production sold, and in SBIC
income.
- Net securities
gains of $0.2 million in the first quarter of 2024 include
gains of $4.1 million on the sale of the Company’s holdings of Visa
Class B stock. This was largely offset by losses of $3.8 million on
the sale of $86.8 million or 3% of the bank’s investment securities
portfolio. The securities were reinvested at a yield of 5.53%, with
an expected earnback on the trade of 1.9 years.
- The
provision for credit losses was $1.4 million in
the first quarter of 2024, compared to $4.0 million in the fourth
quarter of 2023 and $31.6 million in the first quarter of 2023. The
first quarter of 2023 included a $26.6 million day-one provision
associated with a bank acquisition.
-
Noninterest expense was $90.4 million in the first
quarter of 2024, an increase of $4.0 million, or 5%, compared to
the prior quarter, and a decrease of $17.1 million, or 16%,
compared to the prior year quarter. Changes compared to the fourth
quarter of 2023 included:
- Salaries and
wages increased $1.9 million, or 5%, to $40.3 million, including
$2.1 million in severance-related expenses arising from reductions
in the workforce early in the first quarter of 2024.
- Employee
benefits increased $1.2 million, or 18%, to $7.9 million,
reflecting higher seasonal payroll taxes and 401(k)
contributions.
- Outsourced data
processing costs increased $3.5 million, or 41%, to $12.1 million
and included $4.1 million in charges associated with contract
terminations and modifications to consolidate systems, which will
lead to lower ongoing operating expenses.
- Occupancy costs
increased $0.5 million, or 7%, to $8.0 million in the first quarter
of 2024 and included charges of $0.8 million associated with early
lease terminations and consolidation of locations. Occupancy
expenses will be lower going forward.
- Legal and
professional fees decreased $1.1 million, or 35%, to
$2.2 million, with the fourth quarter of 2023 impacted by
one-time legal fees associated with a closed matter.
- Seacoast
recorded $7.8 million of income tax expense in the
first quarter of 2024, compared to $8.3 million in the fourth
quarter of 2023, and $2.7 million in the first quarter of 2023. Tax
expense related to stock-based compensation was nominal in the
first quarter of 2024 and tax benefits related to stock-based
compensation totaled $0.6 million in the fourth quarter of 2023 and
$0.2 million in the first quarter of 2023.
- The
efficiency ratio was 66.78% in the first quarter
of 2024, compared to 60.32% in the fourth quarter of 2023 and
64.62% in the prior year quarter. The adjusted efficiency
ratio1 was 61.13% in the first quarter of
2024, compared to 60.32% in the fourth quarter of 2023 and 53.10%
in the prior year quarter. The Company continues to remain keenly
focused on disciplined expense control. The increase in the
adjusted efficiency ratio in the first quarter of 2024 reflects the
continued impact of higher deposit rates mitigated partially by
disciplined expense management.
Balance Sheet
- At March 31,
2024, the Company had total assets of $14.8
billion and total shareholders'
equity of $2.1 billion. Book value per
share was $24.93 as of March 31, 2024, compared to $24.84
as of December 31, 2023, and $24.24 as of March 31, 2023.
Tangible book value per share increased to $15.26
as of March 31, 2024, compared to $15.08 as of December 31, 2023,
and $14.25 as of March 31, 2023.
- Debt
securities totaled $2.6 billion as of March 31, 2024, an
increase of $103.0 million, or 4%, compared to December 31, 2023.
Debt securities include approximately $1.9 billion in securities
classified as available for sale and recorded at fair value. The
unrealized loss on these securities is fully reflected in the value
presented on the balance sheet. The portfolio also includes $669.9
million in securities classified as held to maturity with a fair
value of $540.2 million. Held-to-maturity securities consist solely
of mortgage-backed securities and collateralized mortgage
obligations guaranteed by U.S. government agencies, each of which
is expected to recover any price depreciation over its holding
period as the debt securities move to maturity. The Company has
significant liquidity and available borrowing capacity and has the
intent and ability to hold these investments to maturity.
-
Loans decreased $84.9 million from December 31,
2023, totaling $10.0 billion as of March 31, 2024. Loan
originations were $368.3 million in the first quarter of 2024,
a decrease of 23%, consistent with typical seasonality, compared to
$477.9 million in the fourth quarter of 2023. The Company
continues to exercise a disciplined approach to lending, carefully
underwriting loans to strict underwriting guidelines and setting
high expectations for risk adjusted returns.
- Loan
pipelines (loans in underwriting and approval or approved
and not yet closed) totaled $572.9 million as of March 31, 2024, an
increase of 46% from December 31, 2023, and an increase of 46% from
March 31, 2023.
- Commercial
pipelines were $498.6 million as of March 31, 2024, an increase of
63% from $306.5 million at December 31, 2023, and an increase of
72% from $289.2 million at March 31, 2023. The Company is
benefiting from the investment made in recent years to attract
talent from regional banks across its markets. This talent is
onboarding significant new relationships, resulting in higher
deposit growth and growing pipelines.
- SBA pipelines
were $15.6 million as of March 31, 2024, a decrease of 24% from
$20.6 million at December 31, 2023, and an increase of 90% from
$8.2 million at March 31, 2023.
- Consumer
pipelines were $25.1 million as of March 31, 2024, an increase of
$6.3 million, or 34%, from $18.7 million at December 31, 2023, and
a decrease of $13.7 million, or 35%, from $38.7 million at
March 31, 2023.
- Residential
saleable pipelines were $9.3 million as of March 31, 2024, an
increase of 249% from $2.7 million at December 31, 2023, and an
increase of 40% from $6.6 million at March 31, 2023. Retained
residential pipelines were $24.4 million as of March 31, 2024, a
decrease of 45% from $44.4 million at December 31, 2023, and a
decrease of 50% from $48.4 million at March 31, 2023.
- Total
deposits were $12.0 billion as of March 31, 2024, an
increase of $238.9 million, or 8% annualized, when compared to
December 31, 2023. Seacoast’s granular, longstanding deposit base
is a hallmark of our franchise and serves as a significant source
of strength.
- At March 31,
2024, transaction account balances represented 52% of overall
deposits.
- Noninterest
demand deposits represent 30% of overall deposits and grew $10.4
million from the prior quarter.
- The Company
benefits from a granular deposit franchise, with the top ten
depositors representing only 4% of total deposits.
- Average deposits
per banking center were $156.0 million at March 31, 2024, an
increase of 2% from the prior quarter.
- Uninsured
deposits represented only 35% of overall deposit accounts as of
March 31, 2024. This includes public funds under the Florida
Qualified Public Depository program, which provides loss protection
to depositors beyond FDIC insurance limits. Excluding such
balances, the uninsured and uncollateralized deposits were 29% of
total deposits. The Company has liquidity sources including cash
and lines of credit with the Federal Reserve and Federal Home Loan
Bank that represent 138% of uninsured deposits, and 164% of
uninsured and uncollateralized deposits.
- Consumer
deposits represent 42% of overall deposit funding with an average
consumer customer balance of $25 thousand. Commercial deposits
represent 58% of overall deposit funding with an average business
customer balance of $110 thousand.
- Federal Home
Loan Bank advances totaled $110.0 million at March 31, 2024 with a
weighted average interest rate of 4.15%. In the aggregate, borrowed
funds, including FHLB advances, long-term debt and brokered
deposits represented only 2.8% of total liabilities as of March 31,
2024.
Asset Quality
-
Nonperforming loans were $77.2 million at March
31, 2024, an increase from $65.1 million at December 31, 2023, and
$50.8 million at March 31, 2023. Nonperforming loans to total
loans outstanding were 0.77% at March 31, 2024, 0.65% at December
31, 2023, and 0.50% at March 31, 2023.
-
Nonperforming assets to total assets increased to
0.57% at March 31, 2024, compared to 0.50% at December 31, 2023,
and 0.38% at March 31, 2023.
-
The ratio of allowance for credit losses
to total loans was 1.47% at March 31, 2024, 1.48% at
December 31, 2023, and 1.54% at March 31, 2023.
- Net
charge-offs were $3.6 million in the first quarter of
2024, compared to $4.7 million in the fourth quarter of 2023 and
$3.2 million in the first quarter of 2023.
-
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 loan
size is $332 thousand, and the average commercial loan size is
$742 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 39% and 236% of total bank-level risk-based
capital, respectively, compared to 48% and 244%, respectively, at
December 31, 2023. On a consolidated basis, construction and land
development and commercial real estate loans represent 36% and
222%, 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 March 31, 2024 of 14.6%
compared to 14.5% at December 31, 2023, and 13.4% at March 31,
2023. The Total capital ratio was 16.0%, the
Common Equity Tier 1 capital ratio was 14.0%, and
the Tier 1 leverage ratio was 11.1% at March 31,
2024. The Company is considered “well capitalized” based on
applicable U.S. regulatory capital ratio requirements.
- Cash and
cash equivalents at March 31, 2024 totaled $682.7
million.
- The Company’s
loan to deposit ratio was 83.1% at March 31, 2024,
which should provide liquidity and flexibility moving forward.
- Tangible
common equity to tangible assets was 9.25% at March 31,
2024, compared to 9.31% at December 31, 2023, and 8.36% at March
31, 2023. If all held-to-maturity securities were adjusted to fair
value, the tangible common equity ratio would have been 8.59%.
- At March 31,
2024, in addition to $682.7 million in cash, the Company had
$5.1 billion in available borrowing capacity,
including $4.4 billion in available collateralized lines of
credit, $0.4 billion of unpledged debt securities available as
collateral for potential additional borrowings, and available
unsecured lines of credit of $0.3 billion. These liquidity
sources as of March 31, 2024 represented 164% of uninsured and
uncollateralized deposits.
- Our Board of
Directors has approved a share repurchase program of up to $100
million in shares of the Company’s common stock. No shares were
repurchased during the first quarter of 2024.
1Non-GAAP measure, see “Explanation of Certain Unaudited
Non-GAAP Financial Measures" for more information and for a
reconciliation to GAAP.
FINANCIAL
HIGHLIGHTS |
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(Amounts in thousands except per share data) |
(Unaudited) |
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Quarterly Trends |
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|
|
1Q'24 |
|
4Q'23 |
|
3Q'23 |
|
2Q'23 |
|
1Q'23 |
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Selected balance sheet
data: |
|
|
|
|
|
|
|
|
|
|
Gross loans |
$ |
9,978,052 |
|
|
$ |
10,062,940 |
|
|
$ |
10,011,186 |
|
|
$ |
10,117,919 |
|
|
$ |
10,134,395 |
|
|
Total deposits |
|
12,015,840 |
|
|
|
11,776,935 |
|
|
|
12,107,834 |
|
|
|
12,283,267 |
|
|
|
12,309,701 |
|
|
Total assets |
|
14,830,015 |
|
|
|
14,580,249 |
|
|
|
14,823,007 |
|
|
|
15,041,932 |
|
|
|
15,255,408 |
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|
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Performance measures: |
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Net income |
$ |
26,006 |
|
|
$ |
29,543 |
|
|
$ |
31,414 |
|
|
$ |
31,249 |
|
|
$ |
11,827 |
|
|
Net interest margin |
|
3.24 |
% |
|
|
3.36 |
% |
|
|
3.57 |
% |
|
|
3.86 |
% |
|
|
4.31 |
% |
|
Pre-tax pre-provision earnings1 |
$ |
35,674 |
|
|
$ |
42,006 |
|
|
$ |
43,383 |
|
|
$ |
40,864 |
|
|
$ |
47,560 |
|
|
Average diluted shares outstanding |
|
85,270 |
|
|
|
85,336 |
|
|
|
85,666 |
|
|
|
85,536 |
|
|
|
80,717 |
|
|
Diluted earnings per share (EPS) |
|
0.31 |
|
|
|
0.35 |
|
|
|
0.37 |
|
|
|
0.37 |
|
|
|
0.15 |
|
|
Return on (annualized): |
|
|
|
|
|
|
|
|
|
|
Average assets (ROA) |
|
0.71 |
% |
|
|
0.80 |
% |
|
|
0.84 |
% |
|
|
0.84 |
% |
|
|
0.34 |
% |
|
Average tangible assets (ROTA)2 |
|
0.89 |
|
|
|
0.99 |
|
|
|
1.04 |
|
|
|
1.06 |
|
|
|
0.52 |
|
|
Average tangible common equity (ROTCE)2 |
|
9.55 |
|
|
|
11.22 |
|
|
|
11.90 |
|
|
|
12.08 |
|
|
|
5.96 |
|
|
Tangible common equity to tangible assets2 |
|
9.25 |
|
|
|
9.31 |
|
|
|
8.68 |
|
|
|
8.53 |
|
|
|
8.36 |
|
|
Tangible book value per share2 |
$ |
15.26 |
|
|
$ |
15.08 |
|
|
$ |
14.26 |
|
|
$ |
14.24 |
|
|
$ |
14.25 |
|
|
Efficiency ratio |
|
66.78 |
% |
|
|
60.32 |
% |
|
|
62.60 |
% |
|
|
67.34 |
% |
|
|
64.62 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
measures1: |
|
|
|
|
|
|
|
|
|
|
Adjusted net income4 |
$ |
31,132 |
|
|
$ |
31,363 |
|
|
$ |
34,170 |
|
|
$ |
43,489 |
|
|
$ |
23,682 |
|
|
Adjusted pre-tax pre-provision earnings4 |
|
42,513 |
|
|
|
45,016 |
|
|
|
47,349 |
|
|
|
57,202 |
|
|
|
64,354 |
|
|
Adjusted diluted EPS4 |
|
0.37 |
|
|
|
0.37 |
|
|
|
0.40 |
|
|
|
0.51 |
|
|
|
0.29 |
|
|
Adjusted ROTA2 |
|
1.04 |
% |
|
|
1.04 |
% |
|
|
1.12 |
% |
|
|
1.41 |
% |
|
|
0.88 |
% |
|
Adjusted ROTCE2 |
|
11.15 |
|
|
|
11.80 |
|
|
|
12.79 |
|
|
|
16.08 |
|
|
|
10.16 |
|
|
Adjusted efficiency ratio |
|
61.13 |
|
|
|
60.32 |
|
|
|
60.19 |
|
|
|
56.44 |
|
|
|
53.10 |
|
|
Net adjusted noninterest expense as a percent of average tangible
assets2 |
|
2.23 |
% |
|
|
2.25 |
|
|
|
2.34 |
|
|
|
2.40 |
|
|
|
2.47 |
|
|
|
|
|
|
|
|
|
|
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Other data: |
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|
|
|
|
|
|
|
|
Market capitalization3 |
$ |
2,156,529 |
|
|
$ |
2,415,158 |
|
|
$ |
1,869,891 |
|
|
$ |
1,880,407 |
|
|
$ |
2,005,241 |
|
|
Full-time equivalent employees |
|
1,445 |
|
|
|
1,541 |
|
|
|
1,570 |
|
|
|
1,670 |
|
|
|
1,650 |
|
|
Number of ATMs |
|
95 |
|
|
|
96 |
|
|
|
97 |
|
|
|
96 |
|
|
|
97 |
|
|
Full-service banking offices |
|
77 |
|
|
|
77 |
|
|
|
77 |
|
|
|
78 |
|
|
|
83 |
|
|
1 Non-GAAP
measure, see “Explanation of Certain Unaudited Non-GAAP Financial
Measures" for more information and a reconciliation to GAAP. |
2 The
Company defines tangible assets as total assets less intangible
assets, and tangible common equity as total shareholders' equity
less intangible assets. |
3 Common
shares outstanding multiplied by closing bid price on last day of
each period. |
4 As of
1Q’24, amortization of intangibles is excluded from adjustments to
noninterest expense; prior periods have been updated to reflect the
change. |
|
OTHER INFORMATION
Conference Call
InformationSeacoast will host a conference call
April 26, 2024, at 10:00 a.m. (Eastern Time) to discuss the
first quarter of 2024 earnings results and business trends.
Investors may call in (toll-free) by dialing (800) 715-9871
(Conference ID: 7523995). 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.” Additionally, a recording of the call will
be made available to individuals shortly after the conference call
and can be accessed via a link at
www.SeacoastBanking.com under the heading “Corporate
Information.” The recording 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 $14.8 billion in assets
and $12.0 billion in deposits as of March 31, 2024. Seacoast
provides integrated financial services including commercial and
consumer banking, wealth management, and mortgage services to
customers at 77 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.
Tracey L. DexterChief Financial OfficerSeacoast
Banking Corporation of Florida(772) 403-0461
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, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, 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, or expects to acquire, as well as statements with respect
to Seacoast's objectives, strategic plans, expectations and
intentions and other statements that are not historical facts.
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 Banking Corporation of Florida (“Seacoast”
or the “Company”) or its wholly-owned banking subsidiary, Seacoast
National Bank (“Seacoast Bank”), to be materially different from
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
impact of current and future economic and market conditions
generally (including seasonality) and in the financial services
industry, nationally and within Seacoast’s primary market areas,
including the effects of inflationary pressures, changes in
interest rates, slowdowns in economic growth, and the potential for
high unemployment rates, as well as the financial stress on
borrowers and changes to customer and client behavior and credit
risk as a result of the foregoing; potential impacts of adverse
developments in the banking industry, including those highlighted
by high-profile bank failures, and including impacts on customer
confidence, deposit outflows, liquidity and the regulatory response
thereto (including increases in the cost of our deposit insurance
assessments), the Company's ability to effectively manage its
liquidity risk and any growth plans, and the availability of
capital and funding; 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; the risks of changes in interest rates on the level and
composition of deposits (as well as the cost of, and competition
for, deposits), loan demand, liquidity and the values of loan
collateral, securities, and interest rate sensitive assets and
liabilities; interest rate risks (including the impacts of interest
rates on macroeconomic conditions, customer and client behavior,
and on our net interest income), sensitivities and the shape of the
yield curve; changes in accounting policies, rules and practices;
changes in retail distribution strategies, customer preferences and
behavior generally and as a result of economic factors, including
heightened inflation; 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,
especially as they relate to the value of collateral supporting the
Company’s loans; the Company’s concentration in commercial real
estate loans and in real estate collateral in Florida; Seacoast’s
ability to comply with any regulatory requirements; the risk that
the regulatory environment may not be conducive to or may prohibit
the consummation of future mergers and/or business combinations,
may increase the length of time and amount of resources required to
consummate such transactions, and may reduce the anticipated
benefit; 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 decline in stock market prices on our fee income
from our wealth management business; 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 those impacting vendors
and other third parties which may be exacerbated by recent
developments in generative artificial intelligence; fraud or
misconduct by internal or external parties, which Seacoast may not
be able to prevent, detect or mitigate; 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 and the escalating conflicts in the Middle East, acts of
terrorism, natural disasters, including hurricanes in the Company’s
footprint, health emergencies, epidemics or pandemics, or other
catastrophic events that may affect general economic conditions
and/or increase costs, including, but not limited to, property and
casualty and other insurance costs; Seacoast’s ability to maintain
adequate internal controls over financial reporting; potential
claims, damages, penalties, fines, costs 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, the results of tax audit findings, challenges to our tax
positions, or adverse changes or interpretations of tax laws; 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; the failure of assumptions underlying
the establishment of reserves for expected credit losses; risks
related to, and the costs associated with, environmental, social
and governance matters, including the scope and pace of related
rulemaking activity and disclosure requirements; a deterioration of
the credit rating for U.S. long-term sovereign debt, actions that
the U.S. government may take to avoid exceeding the debt ceiling,
and uncertainties surrounding the debt ceiling and the federal
budget; the risk that balance sheet, revenue growth, and loan
growth expectations may differ from actual results; and other
factors and risks described under “Risk Factors” herein and in any
of the Company's subsequent reports filed with the SEC and
available on its website at www.sec.gov.
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, 2023 and in other periodic
reports that the Company files with the SEC. 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 |
|
|
|
|
(Amounts in thousands, except ratios and per share data) |
1Q'24 |
|
4Q'23 |
|
3Q'23 |
|
2Q'23 |
|
1Q'23 |
Summary of Earnings |
|
|
|
|
|
|
|
|
|
Net income |
$ |
26,006 |
|
|
$ |
29,543 |
|
|
$ |
31,414 |
|
|
$ |
31,249 |
|
|
$ |
11,827 |
|
Adjusted net
income1,6 |
|
31,132 |
|
|
|
31,363 |
|
|
|
34,170 |
|
|
|
43,489 |
|
|
|
23,682 |
|
Net interest
income2 |
|
105,298 |
|
|
|
111,035 |
|
|
|
119,505 |
|
|
|
127,153 |
|
|
|
131,351 |
|
Net interest
margin2,3 |
|
3.24 |
% |
|
|
3.36 |
% |
|
|
3.57 |
% |
|
|
3.86 |
% |
|
|
4.31 |
% |
Pre-tax
pre-provision earnings1 |
|
35,674 |
|
|
|
42,006 |
|
|
|
43,383 |
|
|
|
40,864 |
|
|
|
47,560 |
|
Adjusted
pre-tax pre-provision earnings1,6 |
|
42,513 |
|
|
|
45,016 |
|
|
|
47,349 |
|
|
|
57,202 |
|
|
|
64,354 |
|
Performance Ratios |
|
|
|
|
|
|
|
|
|
Return on
average assets-GAAP basis3 |
|
0.71 |
% |
|
|
0.80 |
% |
|
|
0.84 |
% |
|
|
0.84 |
% |
|
|
0.34 |
% |
Return on
average tangible assets-GAAP basis3,4 |
|
0.89 |
|
|
|
0.99 |
|
|
|
1.04 |
|
|
|
1.06 |
|
|
|
0.52 |
|
Adjusted
return on average tangible assets1,3,4 |
|
1.04 |
|
|
|
1.04 |
|
|
|
1.12 |
|
|
|
1.41 |
|
|
|
0.88 |
|
Pre-tax
pre-provision return on average tangible assets1,3,4,6 |
|
1.22 |
|
|
|
1.39 |
|
|
|
1.43 |
|
|
|
1.39 |
|
|
|
1.67 |
|
Adjusted
pre-tax pre-provision return on average tangible assets1,3,4 |
|
1.42 |
|
|
|
1.48 |
|
|
|
1.55 |
|
|
|
1.85 |
|
|
|
2.18 |
|
Net adjusted
noninterest expense to average tangible assets1,3,4 |
|
2.23 |
|
|
|
2.25 |
|
|
|
2.34 |
|
|
|
2.40 |
|
|
|
2.47 |
|
Return on
average shareholders' equity-GAAP basis3 |
|
4.94 |
|
|
|
5.69 |
|
|
|
6.01 |
|
|
|
6.05 |
|
|
|
2.53 |
|
Return on
average tangible common equity-GAAP basis3,4 |
|
9.55 |
|
|
|
11.22 |
|
|
|
11.90 |
|
|
|
12.08 |
|
|
|
5.96 |
|
Adjusted
return on average tangible common equity1,3,4 |
|
11.15 |
|
|
|
11.80 |
|
|
|
12.79 |
|
|
|
16.08 |
|
|
|
10.16 |
|
Efficiency
ratio5 |
|
66.78 |
|
|
|
60.32 |
|
|
|
62.60 |
|
|
|
67.34 |
|
|
|
64.62 |
|
Adjusted
efficiency ratio1 |
|
61.13 |
|
|
|
60.32 |
|
|
|
60.19 |
|
|
|
56.44 |
|
|
|
53.10 |
|
Noninterest
income to total revenue (excluding securities gains/losses) |
|
16.17 |
|
|
|
15.14 |
|
|
|
13.22 |
|
|
|
14.63 |
|
|
|
14.55 |
|
Tangible
common equity to tangible assets4 |
|
9.25 |
|
|
|
9.31 |
|
|
|
8.68 |
|
|
|
8.53 |
|
|
|
8.36 |
|
Average
loan-to-deposit ratio |
|
84.50 |
|
|
|
83.38 |
|
|
|
82.63 |
|
|
|
83.48 |
|
|
|
82.43 |
|
End of
period loan-to-deposit ratio |
|
83.12 |
|
|
|
85.48 |
|
|
|
82.71 |
|
|
|
82.42 |
|
|
|
82.35 |
|
Per
Share Data |
|
|
|
|
|
|
|
|
|
Net income
diluted-GAAP basis |
$ |
0.31 |
|
|
$ |
0.35 |
|
|
$ |
0.37 |
|
|
$ |
0.37 |
|
|
$ |
0.15 |
|
Net income
basic-GAAP basis |
|
0.31 |
|
|
|
0.35 |
|
|
|
0.37 |
|
|
|
0.37 |
|
|
|
0.15 |
|
Adjusted
earnings1,6 |
|
0.37 |
|
|
|
0.37 |
|
|
|
0.40 |
|
|
|
0.51 |
|
|
|
0.29 |
|
Book value
per share common |
|
24.93 |
|
|
|
24.84 |
|
|
|
24.06 |
|
|
|
24.14 |
|
|
|
24.24 |
|
Tangible
book value per share |
|
15.26 |
|
|
|
15.08 |
|
|
|
14.26 |
|
|
|
14.24 |
|
|
|
14.25 |
|
Cash dividends declared |
|
0.18 |
|
|
|
0.18 |
|
|
|
0.18 |
|
|
|
0.18 |
|
|
|
0.17 |
|
1 Non-GAAP
measure - see "Explanation of Certain Unaudited Non-GAAP Financial
Measures" for more information and a reconciliation to GAAP.
|
2 Calculated on a
fully taxable equivalent basis using amortized cost. |
3 These ratios
are stated on an annualized basis and are not necessarily
indicative of future periods. |
4 The Company
defines tangible assets as total assets less intangible assets, and
tangible common equity as total shareholders' equity less
intangible assets. |
5 Defined 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). |
6 As of 1Q'24,
amortization of intangibles is excluded from adjustments to
noninterest expense; prior periods have been updated to reflect the
change. |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|
(Unaudited) |
|
|
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
Quarterly Trends |
|
(Amounts in thousands, except per share data) |
1Q'24 |
|
4Q'23 |
|
3Q'23 |
|
2Q'23 |
|
1Q'23 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
securities: |
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
22,393 |
|
|
$ |
21,383 |
|
|
$ |
21,401 |
|
|
$ |
20,898 |
|
|
$ |
19,244 |
|
Nontaxable |
|
34 |
|
|
|
55 |
|
|
|
97 |
|
|
|
97 |
|
|
|
105 |
|
Interest and
fees on loans |
|
147,095 |
|
|
|
147,801 |
|
|
|
149,871 |
|
|
|
148,265 |
|
|
|
135,168 |
|
Interest on
federal funds sold and other investments |
|
6,184 |
|
|
|
7,616 |
|
|
|
8,477 |
|
|
|
5,023 |
|
|
|
3,474 |
|
Total Interest Income |
|
175,706 |
|
|
|
176,855 |
|
|
|
179,846 |
|
|
|
174,283 |
|
|
|
157,991 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits |
|
47,534 |
|
|
|
44,923 |
|
|
|
38,396 |
|
|
|
27,183 |
|
|
|
16,033 |
|
Interest on
time certificates |
|
17,121 |
|
|
|
15,764 |
|
|
|
16,461 |
|
|
|
14,477 |
|
|
|
5,552 |
|
Interest on
borrowed money |
|
5,973 |
|
|
|
5,349 |
|
|
|
5,683 |
|
|
|
5,660 |
|
|
|
5,254 |
|
Total Interest Expense |
|
70,628 |
|
|
|
66,036 |
|
|
|
60,540 |
|
|
|
47,320 |
|
|
|
26,839 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income |
|
105,078 |
|
|
|
110,819 |
|
|
|
119,306 |
|
|
|
126,963 |
|
|
|
131,152 |
|
Provision
for credit losses |
|
1,368 |
|
|
|
3,990 |
|
|
|
2,694 |
|
|
|
(764 |
) |
|
|
31,598 |
|
Net Interest Income After Provision for Credit
Losses |
|
103,710 |
|
|
|
106,829 |
|
|
|
116,612 |
|
|
|
127,727 |
|
|
|
99,554 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts |
|
4,960 |
|
|
|
4,828 |
|
|
|
4,648 |
|
|
|
4,560 |
|
|
|
4,242 |
|
Interchange
income |
|
1,888 |
|
|
|
2,433 |
|
|
|
1,684 |
|
|
|
5,066 |
|
|
|
4,694 |
|
Wealth
management income |
|
3,540 |
|
|
|
3,261 |
|
|
|
3,138 |
|
|
|
3,318 |
|
|
|
3,063 |
|
Mortgage
banking fees |
|
381 |
|
|
|
378 |
|
|
|
410 |
|
|
|
576 |
|
|
|
426 |
|
Insurance
agency income |
|
1,291 |
|
|
|
1,066 |
|
|
|
1,183 |
|
|
|
1,160 |
|
|
|
1,101 |
|
SBA
gains |
|
739 |
|
|
|
921 |
|
|
|
613 |
|
|
|
249 |
|
|
|
322 |
|
BOLI
income |
|
2,264 |
|
|
|
2,220 |
|
|
|
2,197 |
|
|
|
2,068 |
|
|
|
1,916 |
|
Other |
|
5,205 |
|
|
|
4,668 |
|
|
|
4,307 |
|
|
|
4,755 |
|
|
|
6,574 |
|
|
|
20,268 |
|
|
|
19,775 |
|
|
|
18,180 |
|
|
|
21,752 |
|
|
|
22,338 |
|
Securities
gains (losses), net |
|
229 |
|
|
|
(2,437 |
) |
|
|
(387 |
) |
|
|
(176 |
) |
|
|
107 |
|
Total Noninterest Income |
|
20,497 |
|
|
|
17,338 |
|
|
|
17,793 |
|
|
|
21,576 |
|
|
|
22,445 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expenses: |
|
|
|
|
|
|
|
|
|
|
Salaries and
wages |
|
40,304 |
|
|
|
38,435 |
|
|
|
46,431 |
|
|
|
45,155 |
|
|
|
47,616 |
|
Employee
benefits |
|
7,889 |
|
|
|
6,678 |
|
|
|
7,206 |
|
|
|
7,472 |
|
|
|
8,562 |
|
Outsourced
data processing costs |
|
12,118 |
|
|
|
8,609 |
|
|
|
8,714 |
|
|
|
20,222 |
|
|
|
14,553 |
|
Occupancy |
|
8,037 |
|
|
|
7,512 |
|
|
|
7,758 |
|
|
|
8,583 |
|
|
|
8,019 |
|
Furniture
and equipment |
|
2,011 |
|
|
|
2,028 |
|
|
|
2,052 |
|
|
|
2,345 |
|
|
|
2,267 |
|
Marketing |
|
2,655 |
|
|
|
2,995 |
|
|
|
1,876 |
|
|
|
2,047 |
|
|
|
2,238 |
|
Legal and
professional fees |
|
2,151 |
|
|
|
3,294 |
|
|
|
2,679 |
|
|
|
4,062 |
|
|
|
7,479 |
|
FDIC
assessments |
|
2,158 |
|
|
|
2,813 |
|
|
|
2,258 |
|
|
|
2,116 |
|
|
|
1,443 |
|
Amortization
of intangibles |
|
6,292 |
|
|
|
6,888 |
|
|
|
7,457 |
|
|
|
7,654 |
|
|
|
6,727 |
|
Foreclosed
property expense and net (gain) loss on sale |
|
(26 |
) |
|
|
573 |
|
|
|
274 |
|
|
|
(57 |
) |
|
|
195 |
|
Provision
for credit losses on unfunded commitments |
|
250 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,239 |
|
Other |
|
6,532 |
|
|
|
6,542 |
|
|
|
7,210 |
|
|
|
8,266 |
|
|
|
7,137 |
|
Total Noninterest Expense |
|
90,371 |
|
|
|
86,367 |
|
|
|
93,915 |
|
|
|
107,865 |
|
|
|
107,475 |
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes |
|
33,836 |
|
|
|
37,800 |
|
|
|
40,490 |
|
|
|
41,438 |
|
|
|
14,524 |
|
Income
taxes |
|
7,830 |
|
|
|
8,257 |
|
|
|
9,076 |
|
|
|
10,189 |
|
|
|
2,697 |
|
Net Income |
$ |
26,006 |
|
|
$ |
29,543 |
|
|
$ |
31,414 |
|
|
$ |
31,249 |
|
|
$ |
11,827 |
|
|
|
|
|
|
|
|
|
|
|
|
Per share of
common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
diluted |
$ |
0.31 |
|
|
$ |
0.35 |
|
|
$ |
0.37 |
|
|
$ |
0.37 |
|
|
$ |
0.15 |
|
Net income
basic |
|
0.31 |
|
|
|
0.35 |
|
|
|
0.37 |
|
|
|
0.37 |
|
|
|
0.15 |
|
Cash
dividends declared |
|
0.18 |
|
|
|
0.18 |
|
|
|
0.18 |
|
|
|
0.18 |
|
|
|
0.17 |
|
|
|
|
|
|
|
|
|
|
|
|
Average
diluted shares outstanding |
|
85,270 |
|
|
|
85,336 |
|
|
|
85,666 |
|
|
|
85,536 |
|
|
|
80,717 |
|
Average basic shares outstanding |
|
84,908 |
|
|
|
84,817 |
|
|
|
85,142 |
|
|
|
85,022 |
|
|
|
80,151 |
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
(Unaudited) |
|
|
|
|
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(Amounts in thousands) |
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
Assets |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
137,850 |
|
|
$ |
167,511 |
|
|
$ |
182,036 |
|
|
$ |
164,193 |
|
|
$ |
180,607 |
|
Interest bearing deposits with other banks |
|
544,874 |
|
|
|
279,671 |
|
|
|
513,946 |
|
|
|
563,690 |
|
|
|
610,636 |
|
Total Cash and Cash Equivalents |
|
682,724 |
|
|
|
447,182 |
|
|
|
695,982 |
|
|
|
727,883 |
|
|
|
791,243 |
|
|
|
|
|
|
|
|
|
|
|
Time deposits with other banks |
|
7,856 |
|
|
|
5,857 |
|
|
|
4,357 |
|
|
|
2,987 |
|
|
|
3,236 |
|
|
|
|
|
|
|
|
|
|
|
Debt Securities: |
|
|
|
|
|
|
|
|
|
Available for sale (at fair value) |
|
1,949,463 |
|
|
|
1,836,020 |
|
|
|
1,841,845 |
|
|
|
1,916,231 |
|
|
|
2,015,967 |
|
Held to maturity (at amortized cost) |
|
669,896 |
|
|
|
680,313 |
|
|
|
691,404 |
|
|
|
707,812 |
|
|
|
737,911 |
|
Total Debt Securities |
|
2,619,359 |
|
|
|
2,516,333 |
|
|
|
2,533,249 |
|
|
|
2,624,043 |
|
|
|
2,753,878 |
|
|
|
|
|
|
|
|
|
|
|
Loans held for sale |
|
9,475 |
|
|
|
4,391 |
|
|
|
2,979 |
|
|
|
5,967 |
|
|
|
2,838 |
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
9,978,052 |
|
|
|
10,062,940 |
|
|
|
10,011,186 |
|
|
|
10,117,919 |
|
|
|
10,134,395 |
|
Less: Allowance for credit losses |
|
(146,669 |
) |
|
|
(148,931 |
) |
|
|
(149,661 |
) |
|
|
(159,715 |
) |
|
|
(155,640 |
) |
Net Loans |
|
9,831,383 |
|
|
|
9,914,009 |
|
|
|
9,861,525 |
|
|
|
9,958,204 |
|
|
|
9,978,755 |
|
|
|
|
|
|
|
|
|
|
|
Bank premises and equipment, net |
|
110,787 |
|
|
|
113,304 |
|
|
|
115,749 |
|
|
|
116,959 |
|
|
|
116,522 |
|
Other real estate owned |
|
7,315 |
|
|
|
7,560 |
|
|
|
7,216 |
|
|
|
7,526 |
|
|
|
7,756 |
|
Goodwill |
|
732,417 |
|
|
|
732,417 |
|
|
|
731,970 |
|
|
|
732,910 |
|
|
|
728,396 |
|
Other intangible assets, net |
|
89,377 |
|
|
|
95,645 |
|
|
|
102,397 |
|
|
|
109,716 |
|
|
|
117,409 |
|
Bank owned life insurance |
|
301,229 |
|
|
|
298,974 |
|
|
|
296,763 |
|
|
|
293,880 |
|
|
|
292,545 |
|
Net deferred tax assets |
|
111,539 |
|
|
|
113,232 |
|
|
|
131,602 |
|
|
|
127,941 |
|
|
|
124,301 |
|
Other assets |
|
326,554 |
|
|
|
331,345 |
|
|
|
339,218 |
|
|
|
333,916 |
|
|
|
338,529 |
|
Total Assets |
$ |
14,830,015 |
|
|
$ |
14,580,249 |
|
|
$ |
14,823,007 |
|
|
$ |
15,041,932 |
|
|
$ |
15,255,408 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
Noninterest demand |
$ |
3,555,401 |
|
|
$ |
3,544,981 |
|
|
$ |
3,868,132 |
|
|
$ |
4,139,052 |
|
|
$ |
4,554,509 |
|
Interest-bearing demand |
|
2,711,041 |
|
|
|
2,790,210 |
|
|
|
2,800,152 |
|
|
|
2,816,656 |
|
|
|
2,676,320 |
|
Savings |
|
608,088 |
|
|
|
651,454 |
|
|
|
721,558 |
|
|
|
824,255 |
|
|
|
940,702 |
|
Money market |
|
3,531,029 |
|
|
|
3,314,288 |
|
|
|
3,143,897 |
|
|
|
2,859,164 |
|
|
|
2,893,128 |
|
Brokered time certificates |
|
142,717 |
|
|
|
122,347 |
|
|
|
307,963 |
|
|
|
591,503 |
|
|
|
371,392 |
|
Time deposits |
|
1,467,564 |
|
|
|
1,353,655 |
|
|
|
1,266,132 |
|
|
|
1,052,637 |
|
|
|
873,650 |
|
Total Deposits |
|
12,015,840 |
|
|
|
11,776,935 |
|
|
|
12,107,834 |
|
|
|
12,283,267 |
|
|
|
12,309,701 |
|
|
|
|
|
|
|
|
|
|
|
Securities sold under agreements to repurchase |
|
326,732 |
|
|
|
374,573 |
|
|
|
276,450 |
|
|
|
290,156 |
|
|
|
267,606 |
|
Federal Home Loan Bank borrowings |
|
110,000 |
|
|
|
50,000 |
|
|
|
110,000 |
|
|
|
160,000 |
|
|
|
385,000 |
|
Long-term debt, net |
|
106,468 |
|
|
|
106,302 |
|
|
|
106,136 |
|
|
|
105,970 |
|
|
|
105,804 |
|
Other liabilities |
|
153,225 |
|
|
|
164,353 |
|
|
|
174,193 |
|
|
|
148,507 |
|
|
|
136,213 |
|
Total Liabilities |
|
12,712,265 |
|
|
|
12,472,163 |
|
|
|
12,774,613 |
|
|
|
12,987,900 |
|
|
|
13,204,324 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Common stock |
|
8,494 |
|
|
|
8,486 |
|
|
|
8,515 |
|
|
|
8,509 |
|
|
|
8,461 |
|
Additional paid in capital |
|
1,811,941 |
|
|
|
1,808,883 |
|
|
|
1,813,068 |
|
|
|
1,809,431 |
|
|
|
1,803,898 |
|
Retained earnings |
|
478,017 |
|
|
|
467,305 |
|
|
|
453,117 |
|
|
|
437,087 |
|
|
|
421,271 |
|
Treasury stock |
|
(16,746 |
) |
|
|
(16,710 |
) |
|
|
(14,035 |
) |
|
|
(14,171 |
) |
|
|
(13,113 |
) |
|
|
2,281,706 |
|
|
|
2,267,964 |
|
|
|
2,260,665 |
|
|
|
2,240,856 |
|
|
|
2,220,517 |
|
Accumulated other comprehensive (loss) income, net |
|
(163,956 |
) |
|
|
(159,878 |
) |
|
|
(212,271 |
) |
|
|
(186,824 |
) |
|
|
(169,433 |
) |
Total Shareholders' Equity |
|
2,117,750 |
|
|
|
2,108,086 |
|
|
|
2,048,394 |
|
|
|
2,054,032 |
|
|
|
2,051,084 |
|
Total Liabilities & Shareholders' Equity |
$ |
14,830,015 |
|
|
$ |
14,580,249 |
|
|
$ |
14,823,007 |
|
|
$ |
15,041,932 |
|
|
$ |
15,255,408 |
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
84,935 |
|
|
|
84,861 |
|
|
|
85,150 |
|
|
|
85,086 |
|
|
|
84,609 |
|
CONSOLIDATED QUARTERLY FINANCIAL DATA |
|
(Unaudited) |
|
|
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands) |
1Q'24 |
|
4Q'23 |
|
3Q'23 |
|
2Q'23 |
|
1Q'23 |
Credit Analysis |
|
|
|
|
|
|
|
|
|
Net charge-offs |
$ |
3,630 |
|
|
$ |
4,720 |
|
|
$ |
12,748 |
|
|
$ |
705 |
|
|
$ |
3,188 |
|
Net
charge-offs to average loans |
|
0.15 |
% |
|
|
0.19 |
% |
|
|
0.50 |
% |
|
|
0.03 |
% |
|
|
0.14 |
% |
|
|
|
|
|
|
|
|
|
|
Allowance
for credit losses |
$ |
146,669 |
|
|
$ |
148,931 |
|
|
$ |
149,661 |
|
|
$ |
159,715 |
|
|
$ |
155,640 |
|
|
|
|
|
|
|
|
|
|
|
Non-acquired
loans at end of period |
$ |
6,613,763 |
|
|
$ |
6,571,454 |
|
|
$ |
6,343,121 |
|
|
$ |
6,264,044 |
|
|
$ |
6,048,453 |
|
Acquired
loans at end of period |
|
3,364,289 |
|
|
|
3,491,486 |
|
|
|
3,668,065 |
|
|
|
3,853,875 |
|
|
|
4,085,942 |
|
Total Loans |
$ |
9,978,052 |
|
|
$ |
10,062,940 |
|
|
$ |
10,011,186 |
|
|
$ |
10,117,919 |
|
|
$ |
10,134,395 |
|
|
|
|
|
|
|
|
|
|
|
Total
allowance for credit losses to total loans at end of period |
|
1.47 |
% |
|
|
1.48 |
% |
|
|
1.49 |
% |
|
|
1.58 |
% |
|
|
1.54 |
% |
Purchase
discount on acquired loans at end of period |
|
4.63 |
|
|
|
4.75 |
|
|
|
4.86 |
|
|
|
4.98 |
|
|
|
5.02 |
|
|
|
|
|
|
|
|
|
|
|
End
of Period |
|
|
|
|
|
|
|
|
|
Nonperforming loans |
$ |
77,205 |
|
|
$ |
65,104 |
|
|
$ |
41,508 |
|
|
$ |
48,326 |
|
|
$ |
50,787 |
|
Other real
estate owned |
|
309 |
|
|
|
221 |
|
|
|
221 |
|
|
|
530 |
|
|
|
530 |
|
Properties
previously used in bank operations included in other real estate
owned |
|
7,006 |
|
|
|
7,339 |
|
|
|
6,995 |
|
|
|
6,996 |
|
|
|
7,226 |
|
Total Nonperforming Assets |
$ |
84,520 |
|
|
$ |
72,664 |
|
|
$ |
48,724 |
|
|
$ |
55,852 |
|
|
$ |
58,543 |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Loans to Loans at End of Period |
|
0.77 |
% |
|
|
0.65 |
% |
|
|
0.41 |
% |
|
|
0.48 |
% |
|
|
0.50 |
% |
Nonperforming Assets to Total Assets at End of Period |
|
0.57 |
|
|
|
0.50 |
|
|
|
0.33 |
|
|
|
0.37 |
|
|
|
0.38 |
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
Loans |
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
Construction and land development |
$ |
623,246 |
|
|
$ |
767,622 |
|
|
$ |
793,736 |
|
|
$ |
794,371 |
|
|
$ |
757,835 |
|
Commercial real estate - owner occupied |
|
1,656,131 |
|
|
|
1,670,281 |
|
|
|
1,675,881 |
|
|
|
1,669,369 |
|
|
|
1,652,491 |
|
Commercial real estate - non-owner occupied |
|
3,368,339 |
|
|
|
3,319,890 |
|
|
|
3,285,974 |
|
|
|
3,370,211 |
|
|
|
3,412,051 |
|
Residential real estate |
|
2,521,399 |
|
|
|
2,445,692 |
|
|
|
2,418,903 |
|
|
|
2,396,352 |
|
|
|
2,354,394 |
|
Commercial and financial |
|
1,566,198 |
|
|
|
1,607,888 |
|
|
|
1,588,152 |
|
|
|
1,615,534 |
|
|
|
1,655,884 |
|
Consumer |
|
242,739 |
|
|
|
251,567 |
|
|
|
248,540 |
|
|
|
272,082 |
|
|
|
301,740 |
|
Total Loans |
$ |
9,978,052 |
|
|
$ |
10,062,940 |
|
|
$ |
10,011,186 |
|
|
$ |
10,117,919 |
|
|
$ |
10,134,395 |
|
|
AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND
RATES 1 |
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q'24 |
|
4Q'23 |
|
1Q'23 |
|
Average |
|
|
|
Yield/ |
|
Average |
|
|
|
Yield/ |
|
Average |
|
|
|
Yield/ |
(Amounts in thousands) |
Balance |
|
Interest |
|
Rate |
|
Balance |
|
Interest |
|
Rate |
|
Balance |
|
Interest |
|
Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
2,578,938 |
|
|
$ |
22,393 |
|
3.47 |
% |
|
$ |
2,499,047 |
|
|
$ |
21,383 |
|
3.42 |
% |
|
$ |
2,700,122 |
|
|
$ |
19,244 |
|
2.85 |
% |
Nontaxable |
|
5,907 |
|
|
|
41 |
|
2.75 |
|
|
|
7,835 |
|
|
|
68 |
|
3.48 |
|
|
|
16,271 |
|
|
|
131 |
|
3.22 |
|
Total Securities |
|
2,584,845 |
|
|
|
22,434 |
|
3.47 |
|
|
|
2,506,882 |
|
|
|
21,451 |
|
3.42 |
|
|
|
2,716,393 |
|
|
|
19,375 |
|
2.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold |
|
370,494 |
|
|
|
5,056 |
|
5.49 |
|
|
|
465,506 |
|
|
|
6,426 |
|
5.48 |
|
|
|
106,778 |
|
|
|
1,294 |
|
4.91 |
|
Interest bearing deposits with other banks and other
investments |
|
95,619 |
|
|
|
1,128 |
|
4.74 |
|
|
|
91,230 |
|
|
|
1,190 |
|
5.18 |
|
|
|
178,463 |
|
|
|
2,180 |
|
4.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Loans, net |
|
10,034,658 |
|
|
|
147,308 |
|
5.90 |
|
|
|
10,033,245 |
|
|
|
148,004 |
|
5.85 |
|
|
|
9,369,201 |
|
|
|
135,341 |
|
5.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Earning Assets |
|
13,085,616 |
|
|
|
175,926 |
|
5.41 |
|
|
|
13,096,863 |
|
|
|
177,071 |
|
5.36 |
|
|
|
12,370,835 |
|
|
|
158,190 |
|
5.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
(148,422 |
) |
|
|
|
|
|
|
(149,110 |
) |
|
|
|
|
|
|
(139,989 |
) |
|
|
|
|
Cash and due from banks |
|
166,734 |
|
|
|
|
|
|
|
179,908 |
|
|
|
|
|
|
|
156,235 |
|
|
|
|
|
Premises and equipment |
|
112,391 |
|
|
|
|
|
|
|
115,556 |
|
|
|
|
|
|
|
116,083 |
|
|
|
|
|
Intangible assets |
|
825,531 |
|
|
|
|
|
|
|
832,029 |
|
|
|
|
|
|
|
750,694 |
|
|
|
|
|
Bank owned life insurance |
|
299,765 |
|
|
|
|
|
|
|
297,525 |
|
|
|
|
|
|
|
274,517 |
|
|
|
|
|
Other assets including deferred tax assets |
|
349,161 |
|
|
|
|
|
|
|
365,263 |
|
|
|
|
|
|
|
419,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
$ |
14,690,776 |
|
|
|
|
|
|
$ |
14,738,034 |
|
|
|
|
|
|
$ |
13,947,976 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
$ |
2,719,334 |
|
|
$ |
15,266 |
|
2.26 |
% |
|
$ |
2,819,743 |
|
|
$ |
15,658 |
|
2.20 |
% |
|
$ |
2,452,113 |
|
|
$ |
3,207 |
|
0.53 |
% |
Savings |
|
628,329 |
|
|
|
540 |
|
0.35 |
|
|
|
679,720 |
|
|
|
505 |
|
0.29 |
|
|
|
1,053,220 |
|
|
|
400 |
|
0.15 |
|
Money market |
|
3,409,310 |
|
|
|
31,728 |
|
3.74 |
|
|
|
3,268,829 |
|
|
|
28,760 |
|
3.49 |
|
|
|
2,713,224 |
|
|
|
12,426 |
|
1.86 |
|
Time deposits |
|
1,590,070 |
|
|
|
17,121 |
|
4.33 |
|
|
|
1,524,460 |
|
|
|
15,764 |
|
4.10 |
|
|
|
812,422 |
|
|
|
5,552 |
|
2.77 |
|
Securities sold under agreements to repurchase |
|
333,386 |
|
|
|
3,079 |
|
3.71 |
|
|
|
335,559 |
|
|
|
2,991 |
|
3.54 |
|
|
|
173,498 |
|
|
|
864 |
|
2.02 |
|
Federal Home Loan Bank borrowings |
|
102,418 |
|
|
|
960 |
|
3.77 |
|
|
|
59,022 |
|
|
|
442 |
|
2.97 |
|
|
|
282,444 |
|
|
|
2,776 |
|
3.99 |
|
Long-term debt, net |
|
106,373 |
|
|
|
1,934 |
|
7.31 |
|
|
|
106,205 |
|
|
|
1,916 |
|
7.16 |
|
|
|
98,425 |
|
|
|
1,614 |
|
6.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Interest-Bearing Liabilities |
|
8,889,220 |
|
|
|
70,628 |
|
3.20 |
|
|
|
8,793,538 |
|
|
|
66,036 |
|
2.98 |
|
|
|
7,585,346 |
|
|
|
26,839 |
|
1.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
demand |
|
3,528,489 |
|
|
|
|
|
|
|
3,739,993 |
|
|
|
|
|
|
|
4,334,969 |
|
|
|
|
|
Other
liabilities |
|
154,686 |
|
|
|
|
|
|
|
145,591 |
|
|
|
|
|
|
|
130,616 |
|
|
|
|
|
Total Liabilities |
|
12,572,395 |
|
|
|
|
|
|
|
12,679,122 |
|
|
|
|
|
|
|
12,050,931 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
2,118,381 |
|
|
|
|
|
|
|
2,058,912 |
|
|
|
|
|
|
|
1,897,045 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities & Equity |
$ |
14,690,776 |
|
|
|
|
|
|
$ |
14,738,034 |
|
|
|
|
|
|
$ |
13,947,976 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
deposits |
|
|
|
|
2.19 |
% |
|
|
|
|
|
2.00 |
% |
|
|
|
|
|
0.77 |
% |
Interest
expense as a % of earning assets |
|
|
|
|
2.17 |
% |
|
|
|
|
|
2.00 |
% |
|
|
|
|
|
0.88 |
% |
Net interest
income as a % of earning assets |
|
|
$ |
105,298 |
|
3.24 |
% |
|
|
|
$ |
111,035 |
|
3.36 |
% |
|
|
|
$ |
131,351 |
|
4.31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands) |
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
Customer Relationship Funding |
|
|
|
|
|
|
|
|
|
|
Noninterest demand |
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
2,808,151 |
|
$ |
2,752,644 |
|
$ |
3,089,488 |
|
$ |
3,304,761 |
|
$ |
3,622,441 |
|
Retail |
|
553,697 |
|
|
561,569 |
|
|
570,727 |
|
|
615,536 |
|
|
673,686 |
|
Public funds |
|
145,747 |
|
|
173,893 |
|
|
134,649 |
|
|
152,159 |
|
|
194,977 |
|
Other |
|
47,806 |
|
|
56,875 |
|
|
73,268 |
|
|
66,596 |
|
|
63,405 |
|
Total Noninterest Demand |
|
3,555,401 |
|
|
3,544,981 |
|
|
3,868,132 |
|
|
4,139,052 |
|
|
4,554,509 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
1,561,905 |
|
|
1,576,491 |
|
|
1,618,755 |
|
|
1,555,486 |
|
|
1,233,845 |
|
Retail |
|
930,178 |
|
|
956,900 |
|
|
994,224 |
|
|
1,058,993 |
|
|
1,209,664 |
|
Brokered |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
44,474 |
|
Public funds |
|
218,958 |
|
|
256,819 |
|
|
187,173 |
|
|
202,177 |
|
|
188,337 |
|
Total Interest-Bearing Demand |
|
2,711,041 |
|
|
2,790,210 |
|
|
2,800,152 |
|
|
2,816,656 |
|
|
2,676,320 |
|
|
|
|
|
|
|
|
|
|
|
|
Total transaction accounts |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
4,370,056 |
|
|
4,329,135 |
|
|
4,708,243 |
|
|
4,860,247 |
|
|
4,856,286 |
|
Retail |
|
1,483,875 |
|
|
1,518,469 |
|
|
1,564,951 |
|
|
1,674,529 |
|
|
1,883,350 |
|
Brokered |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
44,474 |
|
Public funds |
|
364,705 |
|
|
430,712 |
|
|
321,822 |
|
|
354,336 |
|
|
383,314 |
|
Other |
|
47,806 |
|
|
56,875 |
|
|
73,268 |
|
|
66,596 |
|
|
63,405 |
|
Total Transaction Accounts |
|
6,266,442 |
|
|
6,335,191 |
|
|
6,668,284 |
|
|
6,955,708 |
|
|
7,230,829 |
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
52,665 |
|
|
58,562 |
|
|
79,731 |
|
|
101,908 |
|
|
108,023 |
|
Retail |
|
555,423 |
|
|
592,892 |
|
|
641,827 |
|
|
722,347 |
|
|
832,679 |
|
Total Savings |
|
608,088 |
|
|
651,454 |
|
|
721,558 |
|
|
824,255 |
|
|
940,702 |
|
|
|
|
|
|
|
|
|
|
|
|
Money market |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
1,709,636 |
|
|
1,655,820 |
|
|
1,625,455 |
|
|
1,426,348 |
|
|
1,542,220 |
|
Retail |
|
1,621,618 |
|
|
1,469,142 |
|
|
1,362,390 |
|
|
1,275,721 |
|
|
1,279,712 |
|
Public funds |
|
199,775 |
|
|
189,326 |
|
|
156,052 |
|
|
157,095 |
|
|
71,196 |
|
Total Money Market |
|
3,531,029 |
|
|
3,314,288 |
|
|
3,143,897 |
|
|
2,859,164 |
|
|
2,893,128 |
|
|
|
|
|
|
|
|
|
|
|
|
Brokered time certificates |
|
142,717 |
|
|
122,347 |
|
|
307,963 |
|
|
591,503 |
|
|
371,392 |
|
Time deposits |
|
1,467,564 |
|
|
1,353,655 |
|
|
1,266,132 |
|
|
1,052,637 |
|
|
873,650 |
|
|
|
1,610,281 |
|
|
1,476,002 |
|
|
1,574,095 |
|
|
1,644,140 |
|
|
1,245,042 |
|
Total Deposits |
$ |
12,015,840 |
|
$ |
11,776,935 |
|
$ |
12,107,834 |
|
$ |
12,283,267 |
|
$ |
12,309,701 |
|
|
|
|
|
|
|
|
|
|
|
|
Customer
sweep accounts |
|
326,732 |
|
|
374,573 |
|
|
276,450 |
|
|
290,156 |
|
|
267,606 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
customer funding (1) |
$ |
12,199,855 |
|
$ |
12,029,161 |
|
$ |
12,076,321 |
|
$ |
11,981,920 |
|
$ |
12,161,441 |
|
|
|
|
|
|
|
|
|
|
|
|
(1)Total deposits and customer sweep accounts, excluding brokered
deposits. |
|
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 |
|
|
|
|
|
(Amounts in thousands, except per share data) |
1Q'24 |
|
4Q'23 |
|
3Q'23 |
|
2Q'23 |
|
1Q'23 |
|
Net Income |
$ |
26,006 |
|
|
$ |
29,543 |
|
|
$ |
31,414 |
|
|
$ |
31,249 |
|
|
$ |
11,827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
noninterest income |
|
20,497 |
|
|
|
17,338 |
|
|
|
17,793 |
|
|
|
21,576 |
|
|
|
22,445 |
|
|
Securities
losses (gains), net |
|
(229 |
) |
|
|
2,437 |
|
|
|
387 |
|
|
|
176 |
|
|
|
(107 |
) |
|
BOLI
benefits on death (included in other income) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,117 |
) |
|
Total Adjustments to Noninterest Income |
|
(229 |
) |
|
|
2,437 |
|
|
|
387 |
|
|
|
176 |
|
|
|
(2,224 |
) |
|
Total Adjusted Noninterest Income |
|
20,268 |
|
|
|
19,775 |
|
|
|
18,180 |
|
|
|
21,752 |
|
|
|
20,221 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
noninterest expense |
|
90,371 |
|
|
|
86,367 |
|
|
|
93,915 |
|
|
|
107,865 |
|
|
|
107,475 |
|
|
Merger
related charges: |
|
|
|
|
|
|
|
|
|
|
Salaries and wages |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,573 |
) |
|
|
(4,240 |
) |
|
Outsourced data processing |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(10,904 |
) |
|
|
(6,551 |
) |
|
Legal and professional fees |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,664 |
) |
|
|
(4,789 |
) |
|
Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,507 |
) |
|
|
(1,952 |
) |
|
Total merger related charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(15,648 |
) |
|
|
(17,532 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Branch
reductions and other expense initiatives: |
|
|
|
|
|
|
|
|
|
|
Salaries and wages |
|
(2,073 |
) |
|
|
— |
|
|
|
(3,201 |
) |
|
|
(462 |
) |
|
|
(539 |
) |
|
Outsourced data processing |
|
(4,089 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Occupancy |
|
(771 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Other |
|
(161 |
) |
|
|
— |
|
|
|
(104 |
) |
|
|
(109 |
) |
|
|
(752 |
) |
|
Total branch reductions and other expense initiatives |
|
(7,094 |
) |
|
|
— |
|
|
|
(3,305 |
) |
|
|
(571 |
) |
|
|
(1,291 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to Noninterest Expense |
|
(7,094 |
) |
|
|
— |
|
|
|
(3,305 |
) |
|
|
(16,219 |
) |
|
|
(18,823 |
) |
|
Adjusted Noninterest
Expense2 |
|
83,277 |
|
|
|
86,367 |
|
|
|
90,610 |
|
|
|
91,646 |
|
|
|
88,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Taxes |
|
7,830 |
|
|
|
8,257 |
|
|
|
9,076 |
|
|
|
10,189 |
|
|
|
2,697 |
|
|
Tax effect
of adjustments |
|
1,739 |
|
|
|
617 |
|
|
|
936 |
|
|
|
4,155 |
|
|
|
4,744 |
|
|
Adjusted Income Taxes |
|
9,569 |
|
|
|
8,874 |
|
|
|
10,012 |
|
|
|
14,344 |
|
|
|
7,441 |
|
|
Adjusted Net Income2 |
$ |
31,132 |
|
|
$ |
31,363 |
|
|
$ |
34,170 |
|
|
$ |
43,489 |
|
|
$ |
23,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
diluted share, as reported |
$ |
0.31 |
|
|
$ |
0.35 |
|
|
$ |
0.37 |
|
|
$ |
0.37 |
|
|
$ |
0.15 |
|
|
Adjusted Earnings per Diluted Share |
|
0.37 |
|
|
|
0.37 |
|
|
|
0.40 |
|
|
|
0.51 |
|
|
|
0.29 |
|
|
Average
diluted shares outstanding |
|
85,270 |
|
|
|
85,336 |
|
|
|
85,666 |
|
|
|
85,536 |
|
|
|
80,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Noninterest Expense |
$ |
83,277 |
|
|
$ |
86,367 |
|
|
$ |
90,610 |
|
|
$ |
91,646 |
|
|
$ |
88,652 |
|
|
Provision
for credit losses on unfunded commitments |
|
(250 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,239 |
) |
|
Foreclosed
property expense and net gain (loss) on sale |
|
26 |
|
|
|
(573 |
) |
|
|
(274 |
) |
|
|
57 |
|
|
|
(195 |
) |
|
Amortization
of intangibles |
|
(6,292 |
) |
|
|
(6,888 |
) |
|
|
(7,457 |
) |
|
|
(7,654 |
) |
|
|
(6,727 |
) |
|
Net Adjusted Noninterest Expense |
$ |
76,761 |
|
|
$ |
78,906 |
|
|
$ |
82,879 |
|
|
$ |
84,049 |
|
|
$ |
80,491 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net adjusted
noninterest expense |
$ |
76,761 |
|
|
$ |
78,906 |
|
|
$ |
82,879 |
|
|
$ |
84,049 |
|
|
$ |
80,491 |
|
|
Average
tangible assets |
|
13,865,245 |
|
|
|
13,906,005 |
|
|
|
14,066,216 |
|
|
|
14,044,301 |
|
|
|
13,197,282 |
|
|
Net Adjusted Noninterest Expense to Average Tangible
Assets |
|
2.23 |
% |
|
|
2.25 |
% |
|
|
2.34 |
% |
|
|
2.40 |
% |
|
|
2.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
125,575 |
|
|
$ |
128,157 |
|
|
$ |
137,099 |
|
|
$ |
148,539 |
|
|
$ |
153,597 |
|
|
Total
Adjustments to Revenue |
|
(229 |
) |
|
|
2,437 |
|
|
|
387 |
|
|
|
176 |
|
|
|
(2,224 |
) |
|
Impact of
FTE adjustment |
|
220 |
|
|
|
216 |
|
|
|
199 |
|
|
|
190 |
|
|
|
199 |
|
|
Adjusted Revenue on a fully taxable equivalent
basis |
$ |
125,566 |
|
|
$ |
130,810 |
|
|
$ |
137,685 |
|
|
$ |
148,905 |
|
|
$ |
151,572 |
|
|
Adjusted
Efficiency Ratio |
|
61.13 |
% |
|
|
60.32 |
% |
|
|
60.19 |
% |
|
|
56.44 |
% |
|
|
53.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income |
$ |
105,078 |
|
|
$ |
110,819 |
|
|
$ |
119,306 |
|
|
$ |
126,963 |
|
|
$ |
131,152 |
|
|
Impact of
FTE adjustment |
|
220 |
|
|
|
216 |
|
|
|
199 |
|
|
|
190 |
|
|
|
199 |
|
|
Net Interest Income including FTE adjustment |
$ |
105,298 |
|
|
$ |
111,035 |
|
|
$ |
119,505 |
|
|
$ |
127,153 |
|
|
$ |
131,351 |
|
|
Total
noninterest income |
|
20,497 |
|
|
|
17,338 |
|
|
|
17,793 |
|
|
|
21,576 |
|
|
|
22,445 |
|
|
Total
noninterest expense less provision for credit losses on unfunded
commitments |
|
90,121 |
|
|
|
86,367 |
|
|
|
93,915 |
|
|
|
107,865 |
|
|
|
106,236 |
|
|
Pre-Tax Pre-Provision Earnings |
$ |
35,674 |
|
|
$ |
42,006 |
|
|
$ |
43,383 |
|
|
$ |
40,864 |
|
|
$ |
47,560 |
|
|
Total
Adjustments to Noninterest Income |
|
(229 |
) |
|
|
2,437 |
|
|
|
387 |
|
|
|
176 |
|
|
|
(2,224 |
) |
|
Total
Adjustments to Noninterest Expense including foreclosed property
expense |
|
7,068 |
|
|
|
573 |
|
|
|
3,579 |
|
|
|
16,162 |
|
|
|
19,018 |
|
|
Adjusted Pre-Tax Pre-Provision
Earnings2 |
$ |
42,513 |
|
|
$ |
45,016 |
|
|
$ |
47,349 |
|
|
$ |
57,202 |
|
|
$ |
64,354 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Assets |
$ |
14,690,776 |
|
|
$ |
14,738,034 |
|
|
$ |
14,906,003 |
|
|
$ |
14,887,289 |
|
|
$ |
13,947,976 |
|
|
Less average
goodwill and intangible assets |
|
(825,531 |
) |
|
|
(832,029 |
) |
|
|
(839,787 |
) |
|
|
(842,988 |
) |
|
|
(750,694 |
) |
|
Average Tangible Assets |
$ |
13,865,245 |
|
|
$ |
13,906,005 |
|
|
$ |
14,066,216 |
|
|
$ |
14,044,301 |
|
|
$ |
13,197,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP TO NON-GAAP RECONCILIATION |
|
|
|
|
(Unaudited) |
|
|
|
|
|
SEACOAST
BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Trends |
|
|
|
|
|
(Amounts in thousands, except per share data) |
1Q'24 |
|
4Q'23 |
|
3Q'23 |
|
2Q'23 |
|
1Q'23 |
|
Return on Average Assets (ROA) |
|
0.71 |
% |
|
|
0.80 |
% |
|
|
0.84 |
% |
|
|
0.84 |
% |
|
|
0.34 |
% |
|
Impact of
removing average intangible assets and related amortization |
|
0.18 |
|
|
|
0.19 |
|
|
|
0.20 |
|
|
|
0.22 |
|
|
|
0.18 |
|
|
Return on Average Tangible Assets (ROTA) |
|
0.89 |
|
|
|
0.99 |
|
|
|
1.04 |
|
|
|
1.06 |
|
|
|
0.52 |
|
|
Impact of
other adjustments for Adjusted Net Income |
|
0.15 |
|
|
|
0.05 |
|
|
|
0.08 |
|
|
|
0.35 |
|
|
|
0.36 |
|
|
Adjusted Return on Average Tangible Assets |
|
1.04 |
|
|
|
1.04 |
|
|
|
1.12 |
|
|
|
1.41 |
|
|
|
0.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Tax
Pre-Provision return on Average Tangible Assets2 |
|
1.22 |
% |
|
|
1.39 |
% |
|
|
1.43 |
% |
|
|
1.39 |
% |
|
|
1.67 |
% |
|
Impact of
adjustments on Pre-Tax Pre-Provision earnings |
|
0.20 |
|
|
|
0.09 |
|
|
|
0.12 |
|
|
|
0.46 |
|
|
|
0.51 |
|
|
Adjusted Pre-Tax Pre-Provision Return on Tangible
Assets |
|
1.42 |
|
|
|
1.48 |
|
|
|
1.55 |
|
|
|
1.85 |
|
|
|
2.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Shareholders' Equity |
$ |
2,118,381 |
|
|
$ |
2,058,912 |
|
|
$ |
2,072,747 |
|
|
$ |
2,070,529 |
|
|
$ |
1,897,045 |
|
|
Less average
goodwill and intangible assets |
|
(825,531 |
) |
|
|
(832,029 |
) |
|
|
(839,787 |
) |
|
|
(842,988 |
) |
|
|
(750,694 |
) |
|
Average Tangible Equity |
$ |
1,292,850 |
|
|
$ |
1,226,883 |
|
|
$ |
1,232,960 |
|
|
$ |
1,227,541 |
|
|
$ |
1,146,351 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
Average Shareholders' Equity |
|
4.94 |
% |
|
|
5.69 |
% |
|
|
6.01 |
% |
|
|
6.05 |
% |
|
|
2.53 |
% |
|
Impact of
removing average intangible assets and related amortization |
|
4.61 |
|
|
|
5.53 |
|
|
|
5.89 |
|
|
|
6.03 |
|
|
|
3.43 |
|
|
Return on Average Tangible Common Equity
(ROTCE) |
|
9.55 |
|
|
|
11.22 |
|
|
|
11.90 |
|
|
|
12.08 |
|
|
|
5.96 |
|
|
Impact of
other adjustments for Adjusted Net Income |
|
1.60 |
|
|
|
0.58 |
|
|
|
0.89 |
|
|
|
4.00 |
|
|
|
4.20 |
|
|
Adjusted Return on Average Tangible Common
Equity |
|
11.15 |
|
|
|
11.80 |
|
|
|
12.79 |
|
|
|
16.08 |
|
|
|
10.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan
interest income1 |
$ |
147,308 |
|
|
$ |
148,004 |
|
|
$ |
150,048 |
|
|
$ |
148,432 |
|
|
$ |
135,341 |
|
|
Accretion on
acquired loans |
|
(10,595 |
) |
|
|
(11,324 |
) |
|
|
(14,843 |
) |
|
|
(14,580 |
) |
|
|
(15,942 |
) |
|
Loan interest income excluding accretion on acquired
loans |
$ |
136,713 |
|
|
$ |
136,680 |
|
|
$ |
135,205 |
|
|
$ |
133,852 |
|
|
$ |
119,399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on
loans1 |
|
5.90 |
|
|
|
5.85 |
|
|
|
5.93 |
|
|
|
5.89 |
|
|
|
5.86 |
|
|
Impact of
accretion on acquired loans |
|
(0.42 |
) |
|
|
(0.45 |
) |
|
|
(0.59 |
) |
|
|
(0.58 |
) |
|
|
(0.69 |
) |
|
Yield on loans excluding accretion on acquired
loans |
|
5.48 |
% |
|
|
5.40 |
% |
|
|
5.34 |
% |
|
|
5.31 |
% |
|
|
5.17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income1 |
$ |
105,298 |
|
|
$ |
111,035 |
|
|
$ |
119,505 |
|
|
$ |
127,153 |
|
|
$ |
131,351 |
|
|
Accretion on
acquired loans |
|
(10,595 |
) |
|
|
(11,324 |
) |
|
|
(14,843 |
) |
|
|
(14,580 |
) |
|
|
(15,942 |
) |
|
Net interest income excluding accretion on acquired
loans |
$ |
94,703 |
|
|
$ |
99,711 |
|
|
$ |
104,662 |
|
|
$ |
112,573 |
|
|
$ |
115,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin |
|
3.24 |
|
|
|
3.36 |
|
|
|
3.57 |
|
|
|
3.86 |
|
|
|
4.31 |
|
|
Impact of
accretion on acquired loans |
|
(0.33 |
) |
|
|
(0.34 |
) |
|
|
(0.44 |
) |
|
|
(0.44 |
) |
|
|
(0.53 |
) |
|
Net interest margin excluding accretion on acquired
loans |
|
2.91 |
% |
|
|
3.02 |
% |
|
|
3.13 |
% |
|
|
3.42 |
% |
|
|
3.78 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Security
interest income1 |
$ |
22,434 |
|
|
$ |
21,451 |
|
|
$ |
21,520 |
|
|
$ |
21,018 |
|
|
$ |
19,375 |
|
|
Tax
equivalent adjustment on securities |
|
(7 |
) |
|
|
(13 |
) |
|
|
(22 |
) |
|
|
(23 |
) |
|
|
(26 |
) |
|
Security interest income excluding tax equivalent
adjustment |
$ |
22,427 |
|
|
$ |
21,438 |
|
|
$ |
21,498 |
|
|
$ |
20,995 |
|
|
$ |
19,349 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan
interest income1 |
$ |
147,308 |
|
|
$ |
148,004 |
|
|
$ |
150,048 |
|
|
$ |
148,432 |
|
|
$ |
135,341 |
|
|
Tax
equivalent adjustment on loans |
|
(213 |
) |
|
|
(203 |
) |
|
|
(177 |
) |
|
|
(167 |
) |
|
|
(173 |
) |
|
Loan interest income excluding tax equivalent
adjustment |
$ |
147,095 |
|
|
$ |
147,801 |
|
|
$ |
149,871 |
|
|
$ |
148,265 |
|
|
$ |
135,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income1 |
$ |
105,298 |
|
|
$ |
111,035 |
|
|
$ |
119,505 |
|
|
$ |
127,153 |
|
|
$ |
131,351 |
|
|
Tax
equivalent adjustment on securities |
|
(7 |
) |
|
|
(13 |
) |
|
|
(22 |
) |
|
|
(23 |
) |
|
|
(26 |
) |
|
Tax
equivalent adjustment on loans |
|
(213 |
) |
|
|
(203 |
) |
|
|
(177 |
) |
|
|
(167 |
) |
|
|
(173 |
) |
|
Net interest income excluding tax equivalent
adjustment |
$ |
105,078 |
|
|
$ |
110,819 |
|
|
$ |
119,306 |
|
|
$ |
126,963 |
|
|
$ |
131,152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1On a fully taxable
equivalent basis. All yields and rates have been computed using
amortized cost. |
2 As of 1Q’24,
amortization of intangibles is excluded from adjustments to
noninterest expense; prior periods have been updated to reflect the
change. |
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