Seacoast Reports Record Second Quarter 2019 Earnings Results

Seacoast Banking Corporation of Florida (“Seacoast” or the "Company”) (NASDAQ: SBCF) today reported second quarter 2019 net income of $23.3 million, or $0.45 per diluted share, up 37% or $6.3 million year-over-year. Seacoast reported second quarter 2019 adjusted net income1 of $25.8 million, or $0.50 per diluted share, an increase of 41% or $7.6 million compared to the second quarter of 2018.

For the second quarter of 2019, return on average tangible assets was 1.50%, return on average tangible shareholders’ equity was 14.3%, and the efficiency ratio was 53.5%, compared to 1.48%, 14.9% and 56.6%, respectively, in the prior quarter and 1.24%, 13.1%, and 58.4%, respectively, in the second quarter of 2018. Adjusted return on average tangible assets1 was 1.59%, adjusted return on average tangible shareholders’ equity1 was 15.2%, and the adjusted efficiency ratio1 was 51.4%, compared to 1.50%, 15.1%, and 55.8%, respectively, in the prior quarter, and 1.28%, 13.5%, and 57.3%, respectively, in the second quarter of 2018.

Dennis S. Hudson, III, Seacoast’s Chairman and CEO, said, "During the quarter, we achieved record earnings, resulting in a 41% year-over-year increase in adjusted net income1 and 17% year-over-year growth in tangible book value per share. We continue to build a very high quality balance sheet, fortified with a growing capital base, strong asset quality trends, and a well-managed liquidity position."

Hudson added, "Highlights in the quarter included continued expansion of our business banking team in Tampa and South Florida, strong performance from our mortgage banking group, and completion of our $10 million annual expense reduction initiative, all resulting in an improvement in our adjusted efficiency ratio1, declining 4% from the prior quarter to 51.4%."

Charles M. Shaffer, Seacoast’s Chief Operating Officer and Chief Financial Officer, said, “Our second quarter 2019 results demonstrate that our focus on strong financial performance, disciplined credit underwriting, and franchise expansion in robust markets continues to create value for shareholders. During the quarter, we continued to drive improved operating leverage while delivering a strictly underwritten credit portfolio that is well diversified in terms of asset mix and granularity. We have built a balance sheet that is supported by an excellent customer franchise, with an average loan to deposit ratio of 87.3%, providing ample room for expansion of loans. We ended the quarter with a tangible common equity ratio of 10.7% and healthy levels of liquidity, both of which should support our ability to deploy capital for continued organic growth and disciplined opportunistic acquisitions."

Second Quarter 2019 Financial Highlights

Income Statement

Net income was $23.3 million, or $0.45 per diluted share, compared to $22.7 million, or $0.44, for the prior quarter and $17.0 million, or $0.35, for the second quarter of 2018. For the six months ended June 30, 2019, net income was $46.0 million, or $0.88 per diluted share, compared to $35.0 million, or $0.73, for the six months ended June 30, 2018. Adjusted net income1 was $25.8 million, or $0.50 per diluted share, compared to $24.2 million, or $0.47, for the prior quarter and $18.3 million, or $0.38, for the second quarter of 2018. For the six months ended June 30, 2019, adjusted net income1 was $50.0 million, or $0.96 per diluted share, compared to $37.6 million, or $0.79, for the six months ended June 30, 2018.
Net revenues were $73.7 million, an increase of $0.1 million, compared to the prior quarter, and an increase of $10.8 million, or 17%, compared to the second quarter of 2018. For the six months ended June 30, 2019, net revenues were $147.3 million, an increase of $22.3 million, or 18%, compared to the six months ended June 30, 2018. Adjusted revenues1 were $74.2 million, an increase of $0.6 million, or 1%, from the prior quarter and an increase of $11.2 million, or 18%, from the second quarter of 2018. For the six months ended June 30, 2019, adjusted revenues1 were $147.8 million, an increase of $22.7 million, or 18%, compared to the six months ended June 30, 2018.
Net interest income totaled $60.1 million, a decrease of $0.6 million, or 1%, from the prior quarter and an increase of $9.9 million, or 20%, from the second quarter of 2018. For the six months ended June 30, 2019, net interest income was $120.9 million, an increase of $20.9 million, or 21%, compared to the six months ended June 30, 2018.
Net interest margin was 3.94% in the second quarter of 2019, 4.02% in the first quarter of 2019 and 3.77% in the second quarter of 2018. Quarter-over-quarter, the yield on loans contracted 6 basis points, the yield on securities contracted 2 basis points, and the cost of deposits increased 9 basis points. The impact on net interest margin from accretion of purchase discounts on acquired loans was 27 basis points in the second quarter of 2019, compared to 26 basis points in the prior quarter and 17 basis points in the second quarter of 2018. During the quarter, the yield curve declined across all points on the curve, affecting variable rate loans and securities, and reducing add-on rates for new loans originated. Of note, late in the quarter, deposit rate pressure began to abate.
Noninterest income totaled $13.6 million, an increase of $0.7 million, or 6%, compared to the prior quarter and an increase of $0.9 million, or 7%, from the second quarter of 2018. For the six months ended June 30, 2019, noninterest income was $26.4 million, an increase of $1.4 million, or 6%, compared to the six months ended June 30, 2018. Sequentially, noninterest income increased across nearly every category. Highlights include an increase of $0.6 million in mortgage banking fees, reflecting increasing success in generating saleable mortgage volume, a $0.2 million increase in wealth-related fees attributed to continued growth in assets under management, a $0.2 million increase in service charges on deposits, in part the result of increased revenue from treasury products, and a $0.2 million increase in other income, primarily attributed to higher swap fees. During the quarter, $38.2 million of securities were sold with an average yield of 1.85%, resulting in a loss of $0.6 million. These funds were reinvested at an average yield of 2.90%.
The provision for loan losses was $2.6 million compared to $1.4 million in the prior quarter and $2.5 million in the second quarter of 2018.
Noninterest expense was $41.0 million, a decrease of $2.1 million, or 5%, compared to the prior quarter and an increase of $2.8 million, or 7%, from the second quarter of 2018. For the six months ended June 30, 2019, noninterest expense was $84.1 million, an increase of $8.7 million, or 12%, compared to the six months ended June 30, 2018. Sequentially, changes from the first quarter of 2019 in noninterest expense consisted of the following:º Salaries and wages increased by $0.9 million, attributed to $1.1 million in severance costs associated with the reduction of 50 full time equivalent employees as previously announced. The full benefit of the reduction in force should be realized in the third quarter.º Employee benefits decreased $1.0 million attributed to the reduction in full time equivalent employees, lower seasonal payroll taxes and 401(k) plan contributions, and lower health insurance claims when compared to the first quarter of 2019.º Legal and professional fees decreased by $0.8 million primarily due to higher expenses incurred in the first quarter of 2019 on projects in risk management and lending operations, leading to the successful launch of our commercial digital origination platform.º Our continued focus on efficiency and streamlining operations resulted in decreases across several categories, most notably a decrease of $0.8 million in other expenses and $0.2 million in furniture and equipment.º During the quarter, we closed one banking center location, resulting in a $0.3 million one-time expense which is included in occupancy expense. We will close an additional banking center location in the third quarter.
Seacoast recorded $6.9 million in income tax expense in the second quarter of 2019, compared to $6.4 million in the prior quarter and $5.2 million in the second quarter of 2018. Tax benefits related to stock-based compensation were $0.1 million in the second quarter compared to $0.6 million in the prior quarter, during which a significant amount of previously granted awards vested. The quarter-over-quarter change unfavorably impacted earnings per share by one cent.
Year to date adjusted revenues1 increased 18% compared to prior year while adjusted noninterest expense1 increased 10%, generating 8% operating leverage.
The efficiency ratio was 53.5% compared to 56.6% in the prior quarter and 58.4% in the second quarter of 2018. The adjusted efficiency ratio1 was 51.4% compared to 55.8% in the prior quarter and 57.3% in the second quarter of 2018. The reduction in both ratios was the outcome of our continued focus on streamlining operations, in combination with driving top-line revenue improvements.

Balance Sheet

At June 30, 2019, the Company had total assets of $6.8 billion and total shareholders' equity of $930.2 million. Book value per share was $18.08 and tangible book value per share was $13.65, compared to $17.44 and $12.98, respectively, at March 31, 2019 and $15.18 and $11.67, respectively, at June 30, 2018. Year-over-year, tangible book value per share increased 17%.
Debt securities totaled $1.2 billion at June 30, 2019, an increase of $28.9 million compared to the prior quarter and a decrease of $135.1 million from June 30, 2018. During the quarter, $38.2 million of securities were sold, with an average yield of 1.85%, resulting in a loss of $0.6 million. Purchases of securities during the quarter totaled $87.4 million at an average yield of 2.90%.
Loans totaled $4.9 billion at June 30, 2019, an increase of $59.7 million, or 1.2%, compared to the prior quarter, and an increase of $914.1 million, or 23%, from June 30, 2018.
New loan originations of $407 million, compared to $310 million in the prior quarter, resulted in net loan growth in the quarter of 5% on an annualized basis, overcoming a $59 million increase in early loan payoffs when compared to the prior quarter. During the second quarter, we saw acceleration in commercial real estate loans being refinanced away with minimal or no covenants, limited or no guarantees, in combination with increasing leverage in projects. Additionally, we allowed a few higher risk loans to be refinanced away in categories such as marinas, hotels, and speculative construction. We remain patient and committed to our strict underwriting principles.
Consumer and small business originations for the second quarter of 2019 were a record $136.5 million, an increase of 15% compared to the first quarter of 2019 and an increase of 30% compared to the second quarter of 2018.
Commercial originations during the second quarter of 2019 were $157.0 million, an increase of 44% compared to the first quarter of 2019 and an increase of 12% compared to the second of quarter 2018.
Closed residential loans retained in the portfolio for the second quarter of 2019 were $51.8 million, up 4% from the first quarter of 2019 and down 31% from the second quarter of 2018. The decrease from prior year is consistent with the mortgage banking team's shift towards generating saleable volume and away from residential construction lending.
We continue to manage the Company's exposure to commercial real estate. Construction and land development and commercial real estate loans remain well below regulatory guidance at 51% and 205% of total bank-level risk based capital, respectively, down from 57% and 216%, respectively, in the first quarter of 2019. On a consolidated basis, inclusive of capital at the holding company, construction and land development and commercial real estate loans represent 48% and 192%, respectively, of total consolidated risk based capital.
Concentrations continue to be well managed with an average commercial loan size of approximately $350,000. The top 10 and top 20 relationships represented 19% and 34%, respectively, of total consolidated risk based capital, down from 25% and 42% compared to second quarter of 2018 and down from 29% and 48% compared to second quarter of 2016. Our largest committed exposure totals $29 million.
Pipelines (loans in underwriting and approval or approved and not yet closed) remained strong, totaling $377.6 million as of June 30, 2019.
Consumer and small business pipelines were $65.5 million, a decrease of 3% sequentially and an increase of 24% compared to the prior year.
Commercial pipelines were $261.6 million, an increase of 48% sequentially and 34% compared to the prior year.
Residential pipelines were $50.5 million, an increase of 11% sequentially and a decrease of 21% compared to the prior year, consistent with a shift in focus to generating saleable volume, which at June 30, 2019 represents 90% of the residential pipeline.
Total deposits were $5.5 billion as of June 30, 2019, a decrease of $64.4 million, or 1.1%, sequentially and an increase of $843.8 million, or 18%, from the prior year.
Total deposits grew 3% on an annualized basis quarter-over-quarter, excluding the impact of a $99 million reduction in brokered time deposits. The decrease in brokered time deposits was the result of a shift towards lower rate Federal Home Loan Bank advances in the second quarter.
During the second quarter, we accelerated the velocity of our commercial customer acquisition, with business checking balances growing 8% on an annualized basis overcoming seasonal pressure, the result of expansion of our business banking franchise in the Tampa and Fort Lauderdale markets.
Interest-bearing deposits (interest-bearing demand, savings and money market deposits) increased year-over-year $373.0 million, or 15%, to $2.8 billion, noninterest bearing demand deposits increased $206.2 million, or 14%, to $1.7 billion, and CDs increased $264.6 million, or 34%, to $1.1 billion.
Overall cost of deposits increased to 76 basis points. Of note, late in the quarter, deposit rate pressure began to abate.
Second quarter return on average tangible assets (ROTA) was 1.50%, compared to 1.48% in the prior quarter and 1.24% in the second quarter of 2018. Adjusted ROTA1 was 1.59% compared to 1.50% in the prior quarter and 1.28% in the second quarter of 2018.

Capital

Second quarter return on average tangible common equity (ROTCE) was 14.3%, compared to 14.9% in the prior quarter and 13.1% in the second quarter of 2018. Adjusted ROTCE1 was 15.2% compared to 15.1% in the prior quarter and 13.5% in the second quarter of 2018.
The tier 1 capital ratio was 14.6%, total capital ratio was 15.2% and the tier 1 leverage ratio was 11.7% at June 30, 2019.
Tangible common equity to tangible assets was 10.7% at June 30, 2019, compared to 10.2% at March 31, 2019 and 9.6% at June 30, 2018.

Asset Quality

Nonperforming loans to total loans outstanding was 0.47% at June 30, 2019, 0.46% at March 31, 2019, and 0.66% at June 30, 2018.
Nonperforming assets to total assets was 0.50% at June 30, 2019, 0.51% at March 31, 2019 and 0.58% at June 30, 2018. Nonperforming assets decreased by $0.5 million to $33.8 million in the second quarter of 2019.
The ratio of allowance for loan losses to total loans was 0.69% at June 30, 2019, 0.68% at March 31, 2019, and 0.73% at June 30, 2018. The ratio of allowance for loan losses to non-acquired loans was 0.87% at June 30, 2019, 0.89% at March 31, 2019, and 0.88% at June 30, 2018.
Net charge-offs were $1.8 million or 0.15% of average loans for the second quarter of 2019 compared to $1.0 million, or 0.08% of average loans in the prior quarter.

FINANCIAL HIGHLIGHTS							(Unaudited)
(Amounts in thousands except per share data)
	Quarterly Trends

	2Q'19			1Q'19				4Q'18			3Q'18			2Q'18
Selected Balance Sheet Data:
Total Assets	$	6,824,886		$	6,783,389			$	6,747,659		$	5,930,934		$	5,922,681
Gross Loans	4,888,139			4,828,441				4,825,214			4,059,323			3,974,016
Total Deposits	5,541,209			5,605,578				5,177,240			4,643,510			4,697,440

Performance Measures:
Net Income	$	23,253		$	22,705			$	15,962		$	16,322		$	16,964
Net Interest Margin	3.94		%	4.02		%		4.00		%	3.82		%	3.77		%
Average Diluted Shares Outstanding	51,952			52,039				51,237			48,029			47,974
Diluted Earnings Per Share (EPS)	$	0.45		$	0.44			$	0.31		$	0.34		$	0.35
Return on (annualized):
Average Assets (ROA)	1.38		%	1.36		%		0.96		%	1.10		%	1.16		%
Average Tangible Assets (ROTA)	1.50			1.48				1.05			1.18			1.24
Average Tangible Common Equity (ROTCE)	14.30			14.86				10.94			12.04			13.08
Efficiency Ratio	53.48			56.55				65.76			57.04			58.41

Adjusted Operating Measures1:
Adjusted Net Income	$	25,818		$	24,205			$	23,893		$	17,626		$	18,268
Adjusted Diluted EPS	0.50			0.47				0.47			0.37			0.38
Adjusted ROTA	1.59		%	1.50		%		1.49		%	1.22		%	1.28		%
Adjusted ROTCE	15.17			15.11				15.44			12.43			13.49
Adjusted Efficiency Ratio	51.44			55.81				54.19			56.29			57.31
Adjusted Noninterest Expenses as a
Percent of Average Tangible Assets	2.34			2.55				2.46			2.48			2.57

Other Data:
Market capitalization2	$	1,309,158		$	1,354,759			$	1,336,415		$	1,380,275		$	1,489,411
Full-time equivalent employees	852			902				902			835			826
Number of ATMs	81			84				87			86			87
Full service banking offices	49			50				51			49			49
Registered online users	104,017			102,274				99,415			94,400			92,107
Registered mobile devices	92,281			87,844				83,151			73,300			69,038
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP
2Common shares outstanding multiplied by closing bid price on last day of each period

Vision 2020

We remain confident in our ability to achieve our Vision 2020 targets announced in 2017.

	Vision 2020 Targets
Return on Tangible Assets	1.30% +
Return on Tangible Common Equity	16% +
Efficiency Ratio	Below 50%

Second Quarter Operating Highlights

Modernizing How We Sell

After a successful pilot program early this year, we launched marketing efforts in the second quarter highlighting automated fulfillment for small business loan products. While currently limited to a select group of products, the platform offers digitized onboarding and should significantly reduce the cost to originate small business loans to current customers, while maintaining our strict underwriting principles.

Lowering Our Cost to Serve

We consolidated one banking center location in the second quarter of 2019 with an eight month payback period and one-time expense of $0.3 million. We have one remaining consolidation planned for the third quarter of 2019.
We’ve now achieved our Vision 2020 objective of reducing our footprint by 20% to meet the evolving needs of our customers. We were able to achieve this objective ahead of plan due to successful M&A and the repositioning of our banking center network in strategic growth markets.
At quarter end, average deposits per banking center exceeded $113 million, up from $96 million during the same period last year.
During the quarter, we completed our previously announced $10 million annual expense reduction initiative, which included reducing the full time equivalent employee count by 50, renegotiating key vendor contracts, and reducing expenses across a number of line items.

Driving Improvements in How Our Business Operates

Late last year we launched a large-scale initiative to implement a fully digital loan origination platform across all business banking units. In the second quarter, the implementation and launch were completed. This follows the successful rollout of our fully digital mortgage banking origination platform. This investment should lead to significant improvement in operational efficiency and banker productivity in 2020 and beyond.

Scaling and Evolving Our Culture

We continue to invest in business bankers. In the second quarter we on-boarded 5 new bankers, 15 year to date, in order to fully support the strong markets we serve. We have a robust pipeline of talent as we enter the third quarter of 2019 and will continue to opportunistically add top-tier bankers in the Tampa and Fort Lauderdale markets.

OTHER INFORMATION

Conference Call InformationSeacoast will host a conference call on July 26, 2019 at 10:00 a.m. (Eastern Time) to discuss the second quarter 2019 earnings results and business trends. Investors may call in (toll-free) by dialing (888) 517-2513 (passcode: 8644 001; host: Dennis S. Hudson). 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 of July 26, 2019 by dialing (888) 843-7419 (domestic) and using passcode: 8644 001#.

Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast's website at www.SeacoastBanking.com. The link is located in the subsection "Presentations" under the heading "Investor Services." Beginning the afternoon of July 26, 2019, 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 is one of the largest community banks headquartered in Florida with approximately $6.8 billion in assets and $5.5 billion in deposits as of June 30, 2019. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, and 49 traditional branches of its locally-branded, wholly-owned subsidiary bank, Seacoast Bank. Offices stretch from Fort Lauderdale, Boca Raton and West Palm Beach north through the Daytona Beach area, into Orlando and Central Florida and the adjacent Tampa market, and west to Okeechobee and surrounding counties. More information about the Company is available at www.SeacoastBanking.com.

Cautionary Notice Regarding Forward-Looking StatementsThis 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 our markets, and improvements to reported earnings that may be realized from cost controls, tax law changes, and for integration of banks that we have acquired, or expect to acquire, as well as statements with respect to Seacoast's objectives, strategic plans, including Vision 2020, 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 our 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 our 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 us 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 our 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; 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; changes in accounting policies, rules and practices; 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 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 and loans; changes in borrower credit risks and payment behaviors; 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 us or the banking industry; our concentration in commercial real estate loans; 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 our investments due to market volatility or counterparty payment risk; statutory and regulatory dividend restrictions; increases in regulatory capital requirements for banking organizations generally; the risks of mergers, acquisitions and divestitures, including our ability to continue to identify acquisition targets and successfully acquire desirable financial institutions; changes in technology or products that may be more difficult, costly, or less effective than anticipated; our ability to identify and address increased cybersecurity risks; inability of our risk management framework to manage risks associated with our business; dependence on key suppliers or vendors to obtain equipment or services for our business on acceptable terms; reduction in or the termination of our ability to use the mobile-based platform that is critical to our business growth strategy; the effects of war or other conflicts, acts of terrorism, natural disasters or other catastrophic events that may affect general economic conditions; unexpected outcomes of, and the costs associated with, existing or new litigation involving us; our 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 our deferred tax assets could be reduced if estimates of future taxable income from our operations and tax planning strategies are less than currently estimated and sales of our capital stock could trigger a reduction in the amount of net operating loss carryforwards that we 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, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our 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; and the failure of assumptions underlying the establishment of reserves for possible loan losses.

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 our annual report on Form 10-K for the year ended December 31, 2018, under "Special Cautionary Notice Regarding Forward-looking Statements" and "Risk Factors", and otherwise in our 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															Six Months Ended

(Amounts in thousands, except ratios and per share data)	2Q'19			1Q'19			4Q'18			3Q'18			2Q'18			2Q'19			2Q'18

Summary of Earnings
Net income	$	23,253		$	22,705		$	15,962		$	16,322		$	16,964		45,958			34,991
Adjusted net income1	25,818			24,205			23,893			17,626			18,268			50,023			37,566
Net interest income2	60,219			60,861			60,100			51,709			50,294			121,080			100,147
Net interest margin2,3	3.94		%	4.02		%	4.00		%	3.82		%	3.77		%	3.98		%	3.78		%

Performance Ratios
Return on average assets-GAAP basis3	1.38		%	1.36		%	0.96		%	1.10		%	1.16		%	1.37		%	1.20		%
Return on average tangible assets-GAAP basis3,4	1.50			1.48			1.05			1.18			1.24			1.49			1.29
Adjusted return on average tangible assets1,3,4	1.59			1.50			1.49			1.22			1.28			1.55			1.33

Return on average shareholders' equity-GAAP basis3	10.23			10.47			7.65			8.89			9.59			10.35			10.04
Return on average tangible common equity-GAAP basis3,4	14.30			14.86			10.94			12.04			13.08			14.57			13.73
Adjusted return on average tangible common equity1,3,4	15.17			15.11			15.44			12.43			13.49			15.14			14.14
Efficiency ratio5	53.48			56.55			65.76			57.04			58.41			55.01			58.11
Adjusted efficiency ratio1	51.44			55.81			54.19			56.29			57.31			53.62			57.18
Noninterest income to total revenue (excluding securities losses)	18.93			17.45			17.97			19.31			20.28			18.19			20.11
Tangible common equity to tangible assets4	10.65			10.18			9.72			9.85			9.56			10.65			9.56
Average loan-to-deposit ratio	87.27			90.55			89.14			86.25			83.51			88.87			83.80
End of period loan-to-deposit ratio	88.53			86.38			93.43			87.77			84.91			88.53			84.91

Per Share Data
Net income diluted-GAAP basis	$	0.45		$	0.44		$	0.31		$	0.34		$	0.35		$	0.88		$	0.73
Net income basic-GAAP basis	0.45			0.44			0.32			0.35			0.36			0.89			0.74
Adjusted earnings1	0.50			0.47			0.47			0.37			0.38			0.96			0.79

Book value per share common	18.08			17.44			16.83			15.50			15.18			18.08			15.18
Tangible book value per share	13.65			12.98			12.33			12.01			11.67			13.65			11.67
Cash dividends declared	—			—			—			—			—			—			—


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).

CONDENSED CONSOLIDATED STATEMENTS OF INCOME				(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	Quarterly Trends															Six Months Ended

(Amounts in thousands, except per share data)	2Q'19			1Q'19			4Q'18			3Q'18			2Q'18			2Q'19			2Q'18

Interest on securities:
Taxable	$	8,933		$	9,119		$	9,528		$	9,582		$	9,389		$	18,052		$	18,750
Nontaxable	143			151			200			225			216			294			459
Interest and fees on loans	62,288			62,287			59,495			48,713			46,519			124,575			91,776
Interest on federal funds sold and other investments	873			918			835			634			585			1,791			1,201
Total Interest Income	72,237			72,475			70,058			59,154			56,709			144,712			112,186

Interest on deposits	4,825			3,873			3,140			2,097			1,988			8,698			3,526
Interest on time certificates	5,724			4,959			3,901			2,975			2,629			10,683			4,808
Interest on borrowed money	1,552			2,869			3,033			2,520			1,885			4,421			3,883
Total Interest Expense	12,101			11,701			10,074			7,592			6,502			23,802			12,217

Net Interest Income	60,136			60,774			59,984			51,562			50,207			120,910			99,969
Provision for loan losses	2,551			1,397			2,342			5,774			2,529			3,948			3,614
Net Interest Income After Provision for Loan Losses	57,585			59,377			57,642			45,788			47,678			116,962			96,355

Noninterest income:
Service charges on deposit accounts	2,894			2,697			3,019			2,833			2,674			5,591			5,346
Trust fees	1,147			1,017			1,040			1,083			1,039			2,164			2,060
Mortgage banking fees	1,734			1,115			809			1,135			1,336			2,849			2,738
Brokerage commissions and fees	541			436			468			444			461			977			820
Marine finance fees	201			362			185			194			446			563			1,019
Interchange income	3,405			3,401			3,198			3,119			3,076			6,806			6,018
BOLI income	927			915			1,091			1,078			1,066			1,842			2,122
SBA gains	691			636			519			473			748			1,327			1,482
Other	2,503			2,266			2,810			1,980			1,923			4,769			3,562
	14,043			12,845			13,139			12,339			12,769			26,888			25,167
Securities losses, net	(466		)	(9		)	(425		)	(48		)	(48		)	(475		)	(150		)
Total Noninterest Income	13,577			12,836			12,714			12,291			12,721			26,413			25,017


Noninterest expenses:
Salaries and wages	19,420			18,506			22,172			17,129			16,429			37,926			31,810
Employee benefits	3,195			4,206			3,625			3,205			3,034			7,401			6,115
Outsourced data processing costs	3,876			3,845			5,809			3,493			3,393			7,721			7,072
Telephone / data lines	893			811			602			624			643			1,704			1,255
Occupancy	3,741			3,807			3,747			3,214			3,316			7,548			6,433
Furniture and equipment	1,544			1,757			2,452			1,367			1,468			3,301			2,925
Marketing	1,211			1,132			1,350			1,139			1,344			2,343			2,596
Legal and professional fees	2,033			2,847			3,668			2,019			2,301			4,880			4,274
FDIC assessments	337			488			571			431			595			825			1,193
Amortization of intangibles	1,456			1,458			1,303			1,004			1,004			2,914			1,993
Foreclosed property expense and net (gain)/loss on sale	(174		)	(40		)	—			(136		)	405			(214		)	597
Other	3,468			4,282			4,165			3,910			4,314			7,750			9,147
Total Noninterest Expense	41,000			43,099			49,464			37,399			38,246			84,099			75,410

Income Before Income Taxes	30,162			29,114			20,892			20,680			22,153			59,276			45,962
Income taxes	6,909			6,409			4,930			4,358			5,189			13,318			10,971

Net Income	$	23,253		$	22,705		$	15,962		$	16,322		$	16,964		$	45,958		$	34,991

Per share of common stock:

Net income diluted	$	0.45		$	0.44		$	0.31		$	0.34		$	0.35		$	0.88		$	0.73
Net income basic	0.45			0.44			0.32			0.35			0.36			0.89			0.74
Cash dividends declared	—			—			—			—			—			—			—

Average diluted shares outstanding	51,952			52,039			51,237			48,029			47,974			51,998			47,828
Average basic shares outstanding	51,446			51,359			50,523			47,205			47,165			51,403			47,059

CONDENSED CONSOLIDATED BALANCE SHEETS				(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	June 30,			March 31,			December 31,			September 30,			June 30,
(Amounts in thousands)	2019			2019			2018			2018			2018

Assets
Cash and due from banks	$	97,792		$	98,270		$	92,242		$	101,920		$	123,927
Interest bearing deposits with other banks	61,987			105,741			23,709			3,174			7,594
Total Cash and Cash Equivalents	159,779			204,011			115,951			105,094			131,521

Time deposits with other banks	4,980			8,174			8,243			9,813			10,562

Debt Securities:
Available for sale (at fair value)	914,615			877,549			865,831			923,206			954,906
Held to maturity (at amortized cost)	287,302			295,485			357,949			367,387			382,137
Total Debt Securities	1,201,917			1,173,034			1,223,780			1,290,593			1,337,043

Loans held for sale	17,513			13,900			11,873			16,172			14,707

Loans	4,888,139			4,828,441			4,825,214			4,059,323			3,974,016
Less: Allowance for loan losses	(33,505		)	(32,822		)	(32,423		)	(33,865		)	(28,924		)
Net Loans	4,854,634			4,795,619			4,792,791			4,025,458			3,945,092

Bank premises and equipment, net	68,738			70,412			71,024			63,531			63,991
Other real estate owned	11,043			11,921			12,802			4,715			8,417
Goodwill	205,260			205,260			204,753			148,555			148,555
Other intangible assets, net	22,672			23,959			25,977			16,508			17,319
Bank owned life insurance	125,233			124,306			123,394			122,561			121,602
Net deferred tax assets	19,353			24,647			28,954			25,822			26,021
Other assets	133,764			128,146			128,117			102,112			97,851
Total Assets	$	6,824,886		$	6,783,389		$	6,747,659		$	5,930,934		$	5,922,681

Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest demand	$	1,669,804		$	1,676,009		$	1,569,602		$	1,488,689		$	1,463,652
Interest-bearing demand	1,124,519			1,100,477			1,014,032			912,891			976,281
Savings	519,732			508,320			493,807			451,958			444,736
Money market	1,172,971			1,192,070			1,173,950			1,036,940			1,023,170
Other time certificates	553,107			539,202			513,312			411,208			413,643
Brokered time certificates	268,998			367,841			220,594			192,182			228,602
Time certificates of more than $250,000	232,078			221,659			191,943			149,642			147,356
Total Deposits	5,541,209			5,605,578			5,177,240			4,643,510			4,697,440

Securities sold under agreements to repurchase	82,015			148,005			214,323			189,035			200,050
Federal Home Loan Bank borrowings	140,000			3,000			380,000			261,000			205,000
Subordinated debt	70,944			70,874			70,804			70,734			70,664
Other liabilities	60,479			59,508			41,025			33,824			33,364
Total Liabilities	5,894,647			5,886,965			5,883,392			5,198,103			5,206,518

Shareholders' Equity
Common stock	5,146			5,141			5,136			4,727			4,716
Additional paid in capital	782,928			780,680			778,501			668,711			665,885
Retained earnings	143,032			119,779			97,074			81,112			64,790
Treasury stock	(6,137		)	(4,959		)	(3,384		)	(2,854		)	(2,884		)
	924,969			900,641			877,327			751,696			732,507
Accumulated other comprehensive income/(loss), net	5,270			(4,217		)	(13,060		)	(18,865		)	(16,344		)
Total Shareholders' Equity	930,239			896,424			864,267			732,831			716,163
Total Liabilities & Shareholders' Equity	$	6,824,886		$	6,783,389		$	6,747,659		$	5,930,934		$	5,922,681

Common shares outstanding	51,461			51,414			51,361			47,270			47,163

CONSOLIDATED QUARTERLY FINANCIAL DATA	(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


(Amounts in thousands)	2Q'19			1Q'19			4Q'18			3Q'18			2Q'18

Credit Analysis
Net charge-offs (recoveries) - non-acquired loans	$	1,621		$	762		$	3,693		$	800		$	1,715
Net charge-offs (recoveries) - acquired loans	220			201			56			(3		)	(25		)
Total Net Charge-offs (Recoveries)	1,841			963			3,749			797			1,690

TDR valuation adjustments	$	27		$	35		$	35		$	36		$	33

Net charge-offs (recoveries) to average loans - non-acquired loans	0.13		%	0.06		%	0.32		%	0.08		%	0.17		%
Net charge-offs (recoveries) to average loans - acquired loans	0.02			0.02			—			—			—
Total Net Charge-offs (Recoveries) to Average Loans	0.15			0.08			0.32			0.08			0.17

Provision for loan losses - non-acquired loans	$	2,326		$	1,709		$	2,343		$	5,640		$	2,591
Provision for (recapture of) loan losses - acquired loans	225			(312		)	(1		)	134			(62		)
Total Provision for Loan Losses	$	2,551		$	1,397		$	2,342		$	5,774		$	2,529

Allowance for loan losses - non-acquired loans	$	33,393		$	32,715		$	31,803		$	33,188		$	28,384
Allowance for loan losses - acquired loans	112			107			620			677			540
Total Allowance for Loan Losses	$	33,505		$	32,822		$	32,423		$	33,865		$	28,924

Non-acquired loans at end of period	$	3,817,358		$	3,667,221		$	3,588,251		$	3,383,571		$	3,221,569
Purchased noncredit impaired loans at end of period	1,057,200			1,147,432			1,222,529			662,701			739,232
Purchased credit impaired loans at end of period	13,581			13,788			14,434			13,051			13,215
Total Loans	$	4,888,139		$	4,828,441		$	4,825,214		$	4,059,323		$	3,974,016

Non-acquired loans allowance for loan losses to non-acquired loans at end of period	0.87		%	0.89		%	0.89		%	0.98		%	0.88		%
Total allowance for loan losses to total loans at end of period	0.69			0.68			0.67			0.83			0.73
Purchase discount on acquired loans at end of period	3.76			3.80			3.86			2.25			2.31

End of Period
Nonperforming loans - non-acquired	$	15,810		$	15,423		$	15,783		$	18,998		$	19,578
Nonperforming loans - acquired	6,986			6,990			10,693			7,142			6,624
Other real estate owned - non-acquired	66			831			386			418			354
Other real estate owned - acquired	1,612			1,725			3,020			1,203			4,969
Bank branches closed included in other real estate owned	9,365			9,365			9,396			3,094			3,094
Total Nonperforming Assets	$	33,839		$	34,334		$	39,278		$	30,855		$	34,619

Restructured loans (accruing)	$	14,534		$	14,857		$	13,346		$	13,797		$	14,241

Nonperforming loans to loans at end of period - non-acquired	0.41		%	0.42		%	0.44		%	0.56		%	0.61		%
Nonperforming loans to loans at end of period - acquired	0.65			0.60			0.86			1.06			0.88
Total Nonperforming Loans to Loans at End of Period	0.47			0.46			0.55			0.64			0.66

Nonperforming assets to total assets - non-acquired	0.37		%	0.38		%	0.38		%	0.38		%	0.39		%
Nonperforming assets to total assets - acquired	0.13			0.13			0.20			0.14			0.19
Total Nonperforming Assets to Total Assets	0.50			0.51			0.58			0.52			0.58

	June 30,			March 31,			December 31,			September 30,			June 30,
Loans	2019			2019			2018			2018			2018

Construction and land development	$	379,991		$	417,565		$	443,568		$	376,257		$	359,070
Commercial real estate - owner occupied	1,005,876			989,234			970,181			829,368			812,306
Commercial real estate - non-owner occupied	1,184,409			1,173,183			1,161,885			897,331			888,989
Residential real estate	1,400,184			1,329,166			1,324,377			1,152,640			1,103,946
Consumer	215,932			206,414			202,881			192,772			190,835
Commercial and financial	701,747			712,879			722,322			610,955			618,870
Total Loans	$	4,888,139		$	4,828,441		$	4,825,214		$	4,059,323		$	3,974,016

AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1											(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	2Q'19							1Q'19							2Q'18
	Average					Yield/		Average					Yield/		Average					Yield/
(Amounts in thousands)	Balance			Interest		Rate		Balance			Interest		Rate		Balance			Interest		Rate

Assets
Earning assets:
Securities:
Taxable	$	1,169,891		$	8,933	3.05	%	$	1,186,374		$	9,119	3.07	%	$	1,324,280		$	9,389	2.84	%
Nontaxable	24,110			179		2.96		26,561			190		2.86		32,055			273		3.41
Total Securities	1,194,001			9,112		3.05		1,212,935			9,309		3.07		1,356,335			9,662		2.85

Federal funds sold and other
investments	91,481			873		3.83		91,136			918		4.09		49,387			585		4.75

Loans, net	4,841,751			62,335		5.16		4,839,046			62,335		5.22		3,948,460			46,549		4.73

Total Earning Assets	6,127,233			72,320		4.73		6,143,117			72,562		4.79		5,354,182			56,796		4.25

Allowance for loan losses	(32,806		)					(32,966		)					(29,234		)
Cash and due from banks	91,160							99,940							110,549
Premises and equipment	69,890							70,938							64,445
Intangible assets	228,706							230,066							166,393
Bank owned life insurance	124,631							123,708							121,008
Other assets	126,180							136,175							90,692

Total Assets	$	6,734,994						$	6,770,978						$	5,878,035

Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand	$	1,118,703		$	1,150	0.41	%	$	1,029,726		$	839	0.33	%	$	996,929		$	492	0.20	%
Savings	513,773			586		0.46		500,347			477		0.39		439,691			118		0.11
Money market	1,179,345			3,089		1.05		1,158,939			2,557		0.89		1,027,705			1,378		0.54
Time deposits	1,089,020			5,724		2.11		1,042,346			4,959		1.93		790,404			2,629		1.33
Federal funds purchased and securities
sold under agreements to repurchase	91,614			355		1.55		185,032			550		1.21		179,540			334		0.75
Federal Home Loan Bank borrowings	51,571			329		2.56		227,378			1,421		2.53		160,846			741		1.85
Other borrowings	70,903			868		4.91		70,836			898		5.14		70,623			810		4.60

Total Interest-Bearing Liabilities	4,114,929			12,101		1.18		4,214,604			11,701		1.13		3,665,738			6,502		0.71

Noninterest demand	1,646,934							1,612,548							1,473,331
Other liabilities	61,652							64,262							29,292
Total Liabilities	5,823,515							5,891,414							5,168,361

Shareholders' equity	911,479							879,564							709,674

Total Liabilities & Equity	$	6,734,994						$	6,770,978						$	5,878,035

Cost of deposits						0.76	%						0.67	%						0.39	%
Interest expense as a % of earning assets						0.79	%						0.77	%						0.49	%
Net interest income as a % of earning assets				$	60,219	3.94	%				$	60,861	4.02	%				$	50,294	3.77	%


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 RATES 1								(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	Six Months Ended June 30, 2019								Six Months Ended June 30, 2018
	Average					Yield/			Average					Yield/
(Amounts in thousands, except ratios)	Balance			Interest		Rate			Balance			Interest		Rate

Assets
Earning assets:
Securities:
Taxable	$	1,178,087		$	18,052	3.06	%		$	1,342,676		$	18,750	2.79	%
Nontaxable	25,329			368		2.91			32,346			580		3.59
Total Securities	1,203,416			18,420		3.06			1,375,022			19,330		2.81

Federal funds sold and other
investments	91,310			1,791		3.96			52,761			1,201		4.59

Loans, net	4,840,406			124,671		5.19			3,910,625			91,833		4.74

Total Earning Assets	6,135,132			144,882		4.76			5,338,408			112,364		4.24

Allowance for loan losses	(32,885		)						(28,356		)
Cash and due from banks	95,526								112,215
Premises and equipment	70,411								65,184
Intangible assets	229,382								166,762
Bank owned life insurance	124,172								121,635
Other assets	131,148								89,086

Total Assets	$	6,752,886							$	5,864,934

Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand	$	1,074,460		$	1,989	0.37	%		$	999,287		$	942	0.19	%
Savings	507,097			1,062		0.42			437,574			222		0.10
Money market	1,169,198			5,647		0.97			1,002,243			2,362		0.48
Time deposits	1,065,812			10,683		2.02			783,643			4,808		1.24
Federal funds purchased and securities
sold under agreements to repurchase	138,065			905		1.32			177,771			608		0.69
Federal Home Loan Bank borrowings	138,989			1,750		2.54			218,298			1,771		1.64
Other borrowings	70,870			1,766		5.03			70,587			1,504		4.30

Total Interest-Bearing Liabilities	4,164,491			23,802		1.15			3,689,403			12,217		0.67

Noninterest demand	1,629,836								1,443,813
Other liabilities	62,949								29,221
Total Liabilities	5,857,276								5,162,437

Shareholders' equity	895,610								702,497

Total Liabilities & Equity	$	6,752,886							$	5,864,934

Cost of deposits						0.72	%							0.36	%
Interest expense as a % of earning assets						0.78	%							0.46	%
Net interest income as a % of earning assets				$	121,080	3.98	%					$	100,147	3.78	%


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

	June 30,		March 31,			December 31,		September 30,		June 30,
(Amounts in thousands)	2019		2019			2018		2018		2018

Customer Relationship Funding
Noninterest demand
Commercial	$	1,323,743	$	1,298,468		$	1,217,842	$	1,182,018	$	1,154,225
Retail	251,879		275,383			259,318		233,472		236,838
Public funds	65,822		73,640			68,324		42,474		44,182
Other	28,360		28,518			24,118		30,725		28,407
Total Noninterest Demand	1,669,804		1,676,009			1,569,602		1,488,689		1,463,652

Interest-bearing demand
Commercial	323,818		289,544			211,879		167,865		181,646
Retail	634,099		646,522			650,490		655,429		681,615
Public funds	166,602		164,411			151,663		89,597		113,020
Total Interest-Bearing Demand	1,124,519		1,100,477			1,014,032		912,891		976,281

Total transaction accounts
Commercial	1,647,561		1,588,012			1,429,721		1,349,883		1,335,871
Retail	885,978		921,905			909,808		888,901		918,453
Public funds	232,424		238,051			219,987		132,071		157,202
Other	28,360		28,518			24,118		30,725		28,407
Total Transaction Accounts	2,794,323		2,776,486			2,583,634		2,401,580		2,439,933

Savings	519,732		508,320			493,807		451,958		444,736

Money market
Commercial	517,041		500,649			459,380		423,304		408,005
Retail	590,320		602,378			607,837		524,415		522,783
Public funds	65,610		89,043			106,733		89,221		92,382
Total Money Market	1,172,971		1,192,070			1,173,950		1,036,940		1,023,170

Brokered time certificates	268,998		367,841			220,594		192,182		228,602
Other time certificates	785,185		760,861			705,255		560,850		560,999
	1,054,183		1,128,702			925,849		753,032		789,601
Total Deposits	$	5,541,209	$	5,605,578		$	5,177,240	$	4,643,510	$	4,697,440

Customer sweep accounts	$	82,015	$	148,005		$	214,323	$	189,035	$	200,050

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															Six Months Ended

(Amounts in thousands, except per share data)	2Q'19			1Q'19			4Q'18			3Q'18			2Q'18			2Q'19			2Q'18

Net Income	$	23,253		$	22,705		$	15,962		$	16,322		$	16,964		$	45,958		$	34,991

Total noninterest income	13,577			12,836			12,714			12,291			12,721			26,413			25,017
Securities losses, net	466			9			425			48			48			475			150
BOLI benefits on death (included in other income)	—			—			(280		)	—			—			—			—
Total Adjustments to Noninterest Income	466			9			145			48			48			475			150
Total Adjusted Noninterest Income	14,043			12,845			12,859			12,339			12,769			26,888			25,167

Total noninterest expense	41,000			43,099			49,464			37,399			38,246			84,099			75,410
Merger related charges	—			(335		)	(8,034		)	(482		)	(695		)	(335		)	(1,165		)
Amortization of intangibles	(1,456		)	(1,458		)	(1,303		)	(1,004		)	(1,004		)	(2,914		)	(1,993		)
Branch reductions and other expense initiatives	(1,517		)	(208		)	(587		)	—			—			(1,725		)	—
Total Adjustments to Noninterest Expense	(2,973		)	(2,001		)	(9,924		)	(1,486		)	(1,699		)	(4,974		)	(3,158		)
Total Adjusted Noninterest Expense	38,027			41,098			39,540			35,913			36,547			79,125			72,252

Income Taxes	6,909			6,409			4,930			4,358			5,189			13,318			10,971
Tax effect of adjustments	874			510			2,623			230			443			1,384			981
Taxes and tax penalties on acquisition-related BOLI redemption	—			—			(485		)	—			—			—			—
Effect of change in corporate tax rate	—			—			—			—			—			—			(248		)
Total Adjustments to Income Taxes	874			510			2,138			230			443			1,384			733
Adjusted Income Taxes	7,783			6,919			7,068			4,588			5,632			14,702			11,704
Adjusted Net Income	$	25,818		$	24,205		$	23,893		$	17,626		$	18,268		$	50,023		$	37,566

Earnings per diluted share, as reported	$	0.45		$	0.44		$	0.31		$	0.34		$	0.35		$	0.88		$	0.73
Adjusted Earnings per Diluted Share	0.50			0.47			0.47			0.37			0.38			0.96			0.79
Average diluted shares outstanding	51,952			52,039			51,237			48,029			47,974			51,998			47,828

Adjusted Noninterest Expense	$	38,027		$	41,098		$	39,540		$	35,913		$	36,547		$	79,125		$	72,252
Foreclosed property expense and net gain/(loss) on sale	174			40			—			137			(405		)	214			(597		)
Net Adjusted Noninterest Expense	$	38,201		$	41,138		$	39,540		$	36,050		$	36,142		$	79,339		$	71,655

Revenue	$	73,713		$	73,610		$	72,698		$	63,853		$	62,928		$	147,323		$	124,986
Total Adjustments to Revenue	466			9			145			48			48			475			150
Impact of FTE adjustment	83			87			116			147			87			170			178
Adjusted Revenue on a fully taxable equivalent basis	$	74,262		$	73,706		$	72,959		$	64,048		$	63,063		$	147,968		$	125,314
Adjusted Efficiency Ratio	51.44		%	55.81		%	54.19		%	56.29		%	57.31		%	53.62		%	57.18		%

Average Assets	$	6,734,994		$	6,770,978		$	6,589,870		$	5,903,327		$	5,878,035		$	6,752,886		$	5,864,934
Less average goodwill and intangible assets	(228,706		)	(230,066		)	(213,713		)	(165,534		)	(166,393		)	(229,382		)	(166,762		)
Average Tangible Assets	$	6,506,288		$	6,540,912		$	6,376,157		$	5,737,793		$	5,711,642		$	6,523,504		$	5,698,172

Return on Average Assets (ROA)	1.38		%	1.36		%	0.96		%	1.10		%	1.16		%	1.37		%	1.20		%
Impact of removing average intangible assets and related amortization	0.12			0.12			0.09			0.08			0.08			0.12			0.09
Return on Average Tangible Assets (ROTA)	1.50			1.48			1.05			1.18			1.24			1.49			1.29
Impact of other adjustments for Adjusted Net Income	0.09			0.02			0.44			0.04			0.04			0.06			0.04
Adjusted Return on Average Tangible Assets	1.59			1.50			1.49			1.22			1.28			1.55			1.33

Average Shareholders' Equity	$	911,479		$	879,564		$	827,759		$	728,290		$	709,674		$	895,610		$	702,497
Less average goodwill and intangible assets	(228,706		)	(230,066		)	(213,713		)	(165,534		)	(166,393		)	(229,382		)	(166,762		)
Average Tangible Equity	$	682,773		$	649,498		$	614,046		$	562,756		$	543,281		$	666,228		$	535,735

Return on Average Shareholders' Equity	10.23		%	10.47		%	7.65		%	8.89		%	9.59		%	10.35		%	10.04		%
Impact of removing average intangible assets and related amortization	4.07			4.39			3.29			3.15			3.49			4.22			3.69
Return on Average Tangible Common Equity (ROTCE)	14.30			14.86			10.94			12.04			13.08			14.57			13.73
Impact of other adjustments for Adjusted Net Income	0.87			0.25			4.50			0.39			0.41			0.57			0.41
Adjusted Return on Average Tangible Common Equity	15.17			15.11			15.44			12.43			13.49			15.14			14.14

Loan interest income excluding accretion on acquired loans	$	58,169		$	58,397		$	55,470		$	46,349		$	44,341		$	116,568		$	87,817
Accretion on acquired loans	4,166			3,938			4,089			2,453			2,208			8,103			4,016
Loan interest income	$	62,335		$	62,335		$	59,559		$	48,802		$	46,549		$	124,671		$	91,833




GAAP TO NON-GAAP RECONCILIATION				(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	Quarterly Trends															Six Months Ended

(Amounts in thousands, except per share data)	2Q'19			1Q'19			4Q'18			3Q'18			2Q'18			2Q'19			2Q'18

Yield on loans excluding accretion on acquired loans	4.82		%	4.89		%	4.77		%	4.59		%	4.50		%	4.86		%	4.53		%
Impact of accretion on acquired loans	0.34			0.33			0.35			0.24			0.23			0.33			0.21
Yield on loans	5.16			5.22			5.12			4.83			4.73			5.19			4.74

Net interest income excluding accretion on acquired loans	$	56,053		$	56,923		$	56,011		$	49,256		$	48,086		$	116,962		$	96,131
Accretion on acquired loans	4,166			3,938			4,089			2,453			2,208			4,118			4,016
Net Interest Income	$	60,219		$	60,861		$	60,100		$	51,709		$	50,294		$	121,080		$	100,147

Net interest margin excluding accretion on acquired loans	3.67		%	3.76		%	3.73		%	3.64		%	3.60		%	3.71		%	3.63		%
Impact of accretion on acquired loans	0.27			0.26			0.27			0.18			0.17			0.27			0.15
Net Interest Margin	3.94			4.02			4.00			3.82			3.77			3.98			3.78