• Seacoast Reports Third Quarter 2021 Results

    Источник: Nasdaq GlobeNewswire / 28 окт 2021 16:14:33   America/Chicago

    Strong Quarter for Commercial Loan Originations and Pipeline Generation

    Tangible Book Value Per Share Expands to $17.52, Up 13% from the Prior Year

    STUART, Fla., Oct. 28, 2021 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the third quarter of 2021 of $22.9 million, or $0.40 per diluted share, which includes merger related costs associated with acquisition activity during the quarter and an increase in the provision for loan losses associated with onboarding Legacy Bank of Florida. Third quarter 2021 results represent a decrease of 27% compared to the second quarter of 2021, and an increase of 1% compared to the third quarter of 2020. Adjusted net income1 for the third quarter of 2021 was $29.4 million, or $0.51 per diluted share, which includes an increase in the provision for loan losses associated with onboarding Legacy Bank of Florida. Third quarter 2021 adjusted results represent a decrease of 12% compared to the second quarter of 2021, and an increase of 7% compared to the third quarter of 2020. The ratio of tangible common equity to tangible assets was 10.62%, tangible book value per share increased to $17.52 and Tier 1 capital was 17.7%.

    For the third quarter of 2021, return on average tangible assets was 1.00%, return on average tangible shareholders' equity was 9.56%, and the efficiency ratio was 59.55%, compared to 1.48%, 13.88%, and 54.93%, respectively, in the prior quarter, and 1.20%, 11.35%, and 61.65%, respectively, in the prior year quarter. Adjusted return on average tangible assets1 in the third quarter of 2021 was 1.23%, adjusted return on average tangible shareholders' equity1 was 11.72%, and the adjusted efficiency ratio1 was 51.50%, compared to 1.52%, 14.27%, and 53.49%, respectively, in the prior quarter, and 1.38%, 13.06%, and 54.82%, respectively, in the prior year quarter.

    Charles M. Shaffer, Seacoast's President and CEO, said, “The Seacoast team delivered another impressive quarter, resulting in 13% year-over-year growth in tangible book value per share, ending the period at $17.52, despite the noise of acquisition related activity during the quarter. Additionally, pre-tax pre-provision adjusted earnings1 improved to a record $43.9 million, up from $37.8 million in the preceding quarter. We continue to see economic expansion in our markets and increasing demand for credit. With our recent investments in commercial banking leadership and technology, we are capitalizing on this growth, as evidenced in our growth in loan originations, increasing loan pipelines, new bankers, and solid recruiting pipelines. Additionally, growth in fee income quarter over quarter included new records in wealth management and Small Business Administration fees.”

    Mr. Shaffer further commented, “I am also excited to welcome the Legacy Bank of Florida team and their customers to the Seacoast franchise. The team’s deep experience and extensive relationships in the important South Florida market provide a tremendous opportunity for growth in the coming periods. I am proud of both the Seacoast and Legacy teams’ effort to successfully integrate the bank while accelerating growth through the closing of the acquisition.”

    Acquisition of Legacy Bank of Florida

    In August 2021, the Company completed the acquisition of Legacy Bank of Florida (“Legacy Bank”), which added $477 million in loans, including $39 million in Paycheck Protection Program (“PPP”) loans, and $495 million in deposits. The acquisition strengthens the Company’s position in South Florida, one of the strongest and fastest growing markets in the country, and complements prior acquisitions in the market. Consolidation activities and related expenses are substantially complete.

    Pending Acquisitions of Sabal Palm Bancorp, Inc. and Business Bank of Florida Corporation

    During the third quarter, the Company announced the proposed acquisitions of Sabal Palm Bancorp, Inc., and Business Bank of Florida Corporation. The proposed transactions, which are expected to close in early 2022, will provide an entry into the desirable Sarasota market and deepen the Company’s presence in Brevard County. Sabal Palm Bank operates three branches across the Sarasota market with deposits of approximately $377 million and loans of $272 million as of June 30, 2021. Florida Business Bank, the banking subsidiary of Business Bank of Florida Corporation, operates with one branch in Melbourne with deposits of approximately $166 million and loans of $136 million as of the same period. In total, the two transactions will add approximately $600 million in assets. The transactions in aggregate are expected to be 4% accretive to earnings per share in 2023, the first full year of combined operations, with limited tangible book value dilution.

    Financial Results

    Income Statement

    • Net income was $22.9 million, or $0.40 per diluted share for the third quarter of 2021, which includes merger related costs associated with acquisition activity during the quarter, and an increase in the provision for loan losses associated with onboarding Legacy Bank of Florida. This compares to $31.4 million, or $0.56, for the prior quarter, and $22.6 million, or $0.42, for the prior year quarter. For the nine months ended September 30, 2021, net income was $88.1 million, or $1.56 per diluted share, compared to $48.4 million, or $0.91, for the nine months ended September 30, 2020. Adjusted net income1 was $29.4 million, or $0.51 per diluted share, which includes an increase in the provision for loan losses associated with onboarding Legacy Bank of Florida. This compares to $33.3 million, or $0.59, for the prior quarter, and $27.3 million, or $0.50, for the prior year quarter. For the nine months ended September 30, 2021, adjusted net income1 was $98.1 million, or $1.74 per diluted share, compared to $58.3 million, or $1.09, for the nine months ended September 30, 2020.
    • Pre-tax pre-provision adjusted earnings1 were $43.9 million in the third quarter of 2021, an increase of $6.1 million, or 16%, compared to the prior quarter, and an increase of $7.5 million, or 21%, compared to the prior year quarter. For the nine months ended September 30, 2021, pre-tax pre-provision adjusted earnings1 were $122.3 million, an increase of $8.8 million, or 8%, compared to the nine months ended September 30, 2020.
    • Net revenues were $90.4 million in the third quarter of 2021, an increase of $9.2 million, or 11%, compared to the prior quarter, and an increase of $9.9 million, or 12%, compared to the prior year quarter. For the nine months ended September 30, 2021, net revenues were $255.8 million, an increase of $15.2 million, or 6%, compared to the nine months ended September 30, 2020. Adjusted revenues1 were $90.4 million in the third quarter of 2021, an increase of $9.2 million, or 11%, from the prior quarter, and an increase of $9.9 million, or 12.4%, compared to the prior year quarter. For the nine months ended September 30, 2021, net revenues were $256.0 million, an increase of $16.6 million, or 7%, compared to the nine months ended September 30, 2020.
    • Net interest income totaled $71.3 million in the third quarter of 2021, an increase of $5.5 million, or 8%, from the prior quarter, with increases including the addition of loans from the Legacy Bank acquisition, and higher recognition of fees from an increase in forgiveness of PPP loans. For the nine months ended September 30, 2021, net interest income was $203.7 million, an increase of $9.8 million, or 5%, compared to the nine months ended September 30, 2020. As of September 30, 2021, remaining deferred fees on PPP loans total $5.4 million, which will be recognized over the loans' remaining contractual maturity or earlier, as loans are forgiven.
    • Net interest margin declined from 3.23% in the second quarter of 2021 to 3.22% in the third quarter of 2021, with continued high levels of liquidity and low interest rates. The excess liquidity has been partially deployed into purchases of securities and loans, with $451.1 million in securities purchases with a weighted average yield of 1.42% and $197.9 million in loan pool purchases with a weighted average yield of 2.68%. Securities yields declined by only four basis points to 1.59% in the third quarter of 2021, with lower rates partially offset by a $0.4 million (eight basis point) benefit from a contractual yield maintenance provision. Non-PPP loan yields declined seven basis points to 4.29% during the third quarter of 2021. Offsetting and favorable was the decline in the cost of interest bearing liabilities from 16 basis points to 14 basis points, which includes a decline in the cost of deposits from eight basis points in the second quarter of 2021 to seven basis points in the third quarter of 2021. The effect on net interest margin of accretion of purchase discounts on acquired loans was an increase of 15 basis points in the third quarter compared to an increase of 14 basis points in the prior quarter. The effect on net interest margin of interest and fees on PPP loans was an increase of 18 basis points in the third quarter compared to an increase of six basis points in the prior quarter.
    • Noninterest income totaled $19.0 million in the third quarter of 2021, an increase of $3.7 million, or 24%, compared to the prior quarter, and an increase of $2.1 million, or 12%, compared to the prior year quarter. For the nine months ended September 30, 2021, noninterest income was $52.0 million, an increase of $5.4 million, or 12%, compared to the nine months ended September 30, 2020. Results for the third quarter of 2021 included the following:
      • Interchange revenue was flat compared to the prior quarter at $4.1 million, reflecting stable transactional volume despite the impact of the COVID-19 delta variant on spending early in the quarter. Economic conditions in Florida remain strong, and indications of consumer confidence are high.
      • Wealth management income increased to a record $2.6 million in the third quarter, compared to $2.4 million in the second quarter of 2021. With total assets under management of $1.2 billion, the wealth management team continues to successfully win business with commercial relationships and high net worth families across the Company’s footprint.
      • Mortgage banking fees were $2.5 million, compared to $3.0 million in the prior quarter, due to slowing refinance activity and low housing inventory levels.
      • SBA gains were a record $0.8 million, compared to $0.2 million in the prior quarter, reflecting a renewed focus on saleable lending activity as PPP activity winds down.
      • The Company acquired $25 million in BOLI late in the second quarter of 2021, and $9.1 million in BOLI from Legacy Bank, contributing to an increase of $0.3 million in related income during the quarter. Late in the third quarter, the Company purchased an additional $25.0 million in BOLI.
      • Other income increased by $3.0 million in the third quarter of 2021, attributed to gains on an SBIC investment during the quarter. These gains resulted from the liquidation of an investment made by the fund. The amounts recognized on SBIC investments will vary and are not expected to occur on a routine basis.
    • The provision for credit losses was $5.1 million in the third quarter of 2021, an increase of $9.9 million when compared to the reversal of provision of $4.9 million in the prior quarter. The increase during the quarter reflects the impact of higher loans outstanding, including loans acquired in the Legacy Bank acquisition.
    • Noninterest expense was $55.3 million in the third quarter of 2021, an increase of $9.5 million, or 21%, compared to the prior quarter, and an increase of $3.6 million, or 7%, compared to the prior year quarter. For the nine months ended September 30, 2021, noninterest expense was $147.2 million, an increase of $5.3 million, or 4%, compared to the nine months ended September 30, 2020. Changes from the second quarter of 2021 consisted of the following:
      • Salaries and wages increased $5.0 million to $27.9 million, which includes $2.6 million in merger-related expenses, as well as increases relating to the addition of the Legacy Bank branch franchise, and increases resulting from investments in commercial banking talent.
      • Outsourced data processing increased by $0.9 million, with the increase wholly attributable to the impact of merger-related costs.
      • Occupancy and furniture and equipment costs increased collectively by $0.6 million, including costs associated with the addition of the Legacy Bank branch franchise and acquisition-related equipment disposals.
      • Legal and professional fees increased by $2.0 million, including an increase of $1.5 million in merger-related expenses, and other increases primarily supporting technology initiatives.
    • Seacoast recorded $7.0 million of income tax expense in the third quarter of 2021, compared to $8.8 million in the prior quarter and $7.0 million in the third quarter of 2020. A tax benefit related to stock-based compensation totaled $0.3 million in the third quarter of 2021, compared to a tax benefit of $0.6 million in the second quarter of 2021. The impact of stock-based compensation was nominal in the third quarter of 2020.
    • The ratio of net adjusted noninterest expense1 to average tangible assets was 1.95% in the third quarter of 2021, compared to 1.98% in the prior quarter and 2.24% in the third quarter of 2020.
    • The efficiency ratio was 59.55% compared to 54.93% in the prior quarter and 61.65% in the prior year quarter. The increase from the prior quarter reflects higher net interest income and higher non-interest income, which were more than offset by the impact of higher expenses, primarily resulting from the Legacy Bank acquisition during the third quarter of 2021. The adjusted efficiency ratio1 was 51.50% compared to 53.49% in the prior quarter and 54.82% in the prior year quarter. Without the positive impact of the SBIC investment gain, the adjusted efficiency ratio would have been 53.27% in the third quarter of 2021. The Company remains committed to efficiency through disciplined, proactive management of its cost structure.

    Balance Sheet

    • At September 30, 2021, the Company had total assets of $9.9 billion and total shareholders' equity of $1.3 billion. Book value per share increased to $22.12 on September 30, 2021 from $21.33 on June 30, 2021, and $19.91 on September 30, 2020. Tangible book value per share of $17.52 on September 30, 2021 increased 13% compared to September 30, 2020.
    • Debt securities totaled $2.1 billion on September 30, 2021, an increase of $256.4 million, or 14%, compared to June 30, 2021. Purchases during the quarter consisted of agency-issued collateralized mortgage obligations and collateralized lending obligations with an average yield of 1.42% and a duration of 3.0 years. The Company continues to take a prudent and disciplined approach to reinvesting liquidity.
    • Loans totaled $5.9 billion on September 30, 2021, an increase of $476.8 million, or 9%, compared to June 30, 2021, inclusive of PPP loans, which declined $173.5 million during the quarter. Growth in loans includes $438.6 million of non-PPP loans acquired from Legacy Bank, and an additional $26 million in commercial categories.
    • Loan originations, excluding PPP, were $744.0 million in the third quarter of 2021, compared to $495.0 million in the second quarter of 2021, an increase of 50%.
      • Commercial originations, excluding PPP, were $331.6 million during the third quarter of 2021, compared to $193.0 million in the second quarter of 2021 and $88.2 million in the third quarter of 2020. Recent investments in commercial banking talent contributed to the increase in production. During the quarter, the Company also purchased a $17.1 million single-tenant commercial real estate portfolio from a seller well known to Seacoast. The portfolio is comprised of loans made to high-quality borrowers on stabilized properties with credit tenant leases. The Company fully underwrote the loan portfolio prior to executing the transaction. The portfolio is comprised of loans with an average yield of 3.27%, made to high-quality borrowers on stabilized properties with credit tenant leases.
      • Consumer originations in the third quarter of 2021 increased to $66.4 million from $63.7 million in the second quarter of 2021, and $62.3 million in the third quarter of 2020.
      • Residential loans originated for sale in the secondary market totaled $95.1 million in the third quarter of 2021, compared to $120.1 million in the second quarter of 2021, and $162.5 million in the third quarter of 2020. While we expect to continue to see the benefit of the inflow of new residents and businesses into Florida, refinance activity has slowed and housing inventory remains low.
      • Closed residential loans retained in the portfolio totaled $250.8 million in the third quarter of 2021, compared to $118.1 million in the second quarter of 2021, and $25.4 million in the third quarter of 2020. As an alternative to purchasing lower yielding bonds in the investment portfolio, the Company purchased $180.8 million in high-quality residential home mortgage loans during the quarter with an average yield of 2.62%.
    • Pipelines (loans in underwriting and approval or approved and not yet closed) totaled $478.1 million on September 30, 2021, an increase of 2% from June 30, 2021 and an increase of 5% from September 30, 2020.
      • Commercial pipelines were $368.9 million as of September 30, 2021, an increase of 15% from $322.0 million at June 30, 2021 and an increase of 44% from $256.2 million at September 30, 2020. We expect commercial production and pipelines to continue to grow, including as the result of success in recruiting high quality commercial bankers to the franchise in recent quarters.
      • Consumer pipelines were $31.0 million as of September 30, 2021, compared to $31.7 million at June 30, 2021 and $17.1 million at September 30, 2020.
      • Residential saleable pipelines were $42.8 million as of September 30, 2021, compared to $60.6 million at June 30, 2021 and $149.9 million at September 30, 2020. Retained residential pipelines were $35.4 million as of September 30, 2021, compared to $54.1 million at June 30, 2021 and $33.4 million at September 30, 2020.
    • Total deposits were $8.3 billion as of September 30, 2021, an increase of $497.7 million, or 6%, compared to June 30, 2021.
      • Deposits added through the acquisition of Legacy Bank totaled $494.9 million, driving the increase quarter-over-quarter. Excluding the impact of the acquisition and deposits held off balance sheet, deposits grew 5.5% on an annualized basis.
      • The Company manages excess liquidity on the balance sheet through participation in programs with third-party deposit networks. Through these programs, the Company can offer its customers access to FDIC insurance on large balances with attractive terms, and the Company can retain or sell, on an overnight basis, the underlying deposits. At September 30, 2021, the Company had sold, on an overnight basis, $233 million in deposits compared to $116 million at June 30, 2021. These deposits are not included in the consolidated balance sheet.
      • The overall cost of deposits declined to seven basis points in the third quarter of 2021 from eight basis points in the prior quarter.
      • Total transaction account balances increased $215.6 million, or 5%, quarter-over-quarter, and at September 30, 2021 represent 59% of overall deposit funding. The increase includes $150.7 million from Legacy Bank.
      • Interest-bearing deposits (interest-bearing demand, savings, and money market deposits) increased $248.5 million, or 6%, quarter-over-quarter to $4.6 billion, noninterest-bearing demand deposits increased $134.3 million, or 5%, to $3.1 billion, and CDs (excluding brokered) increased $114.9 million, or 24%, to $596.6 million. Increases from Legacy Bank include $189.1 million in interest-bearing deposits, $150.7 million in noninterest-bearing demand deposits, and $154.8 million in CDs.
      • As of September 30, 2021, deposits per banking center were $165 million, compared to $138 million on September 30, 2020. The acquisition of Legacy Bank and the consolidation of one existing branch location added a net of four new branch locations during the third quarter of 2021.

    Asset Quality

    • Nonperforming loans decreased by $0.3 million to $32.6 million at September 30, 2021. Nonperforming loans to total loans outstanding were 0.55% at September 30, 2021, 0.61% at June 30, 2021, and 0.63% at September 30, 2020.
    • Nonperforming assets to total assets were 0.47% at September 30, 2021, 0.49% at June 30, 2021, and 0.64% at September 30, 2020.
    • The ratio of allowance for credit losses to total loans was 1.49% at September 30, 2021, 1.49% at June 30, 2021, and 1.60% at September 30, 2020. Excluding PPP loans, the ratio of allowance for credit losses to total loans at September 30, 2021, was 1.54%, compared to 1.60% at June 30, 2021 and 1.80% at September 30, 2020. The decline in coverage reflects continued improvement in the economic outlook.
    • Net charge-offs were $1.4 million, or 0.10%, of average loans for the third quarter of 2021 compared to $0.7 million, or 0.05%, of average loans in the second quarter of 2021 and $1.7 million, or 0.12%, of average loans in the third quarter of 2020. Net charge-offs for the four most recent quarters averaged 0.10%.
    • 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. Excluding PPP loans, Seacoast's average commercial loan size is $457 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 21% and 175% of total bank-level risk-based capital, respectively, compared to 24% and 164% respectively, in the second quarter of 2021. On a consolidated basis, construction and land development and commercial real estate loans represent 19% and 160%, respectively, of total consolidated risk-based capital.

    Capital and Liquidity

    • The tier 1 capital ratio decreased to 17.7% from 18.3% at September 30, 2021, and 16.8% at September 30, 2020. The total capital ratio was 18.6% and the tier 1 leverage ratio was 11.7% at September 30, 2021.
    • Cash and cash equivalents at September 30, 2021 totaled $1.2 billion, a decrease of $221.2 million, or 15%, from June 30, 2021, reflecting the impact of securities purchases, loan pool purchases and other cash management strategies.
    • Tangible common equity to tangible assets was 10.62% at September 30, 2021, compared to 10.43% at June 30, 2021 and 10.67% at September 30, 2020.
    • At September 30, 2021, the Company had available unsecured lines of credit of $165.0 million and lines of credit under lendable collateral value of $1.3 billion. Additionally, $1.7 billion of debt securities and $694.6 million of residential and commercial real estate loans are available as collateral for potential borrowings.
    FINANCIAL HIGHLIGHTS        
    (Amounts in thousands except per share data)(Unaudited) 
     Quarterly Trends 
               
     3Q'21 2Q'21 1Q'21 4Q'20 3Q'20 
    Selected Balance Sheet Data:          
    Total Assets$9,893,498   $9,316,833   $8,811,820   $8,342,392   $8,287,840   
    Gross Loans5,905,884   5,437,049   5,661,492   5,735,349   5,858,029   
    Total Deposits8,334,172   7,836,436   7,385,749   6,932,561   6,914,843   
               
    Performance Measures:          
    Net Income$22,944   $31,410   $33,719   $29,347   $22,628   
    Net Interest Margin3.22 % 3.23 % 3.51 % 3.59 % 3.40 % 
    Average Diluted Shares Outstanding57,645   55,901   55,992   55,739   54,301   
    Diluted Earnings Per Share (EPS)$0.40   $0.56   $0.60   $0.53   $0.42   
    Return on (annualized):          
    Average Assets (ROA)0.93 % 1.40 % 1.61 % 1.39 % 1.11 % 
    Average Tangible Assets (ROTA)21.00   1.48   1.70   1.49   1.20   
    Average Tangible Common Equity (ROTCE)29.56   13.88   15.62   13.87   11.35   
    Tangible Common Equity to Tangible Assets210.62   10.43   10.71   11.01   10.67   
    Tangible Book Value Per Share2$17.52   $17.08   $16.62   $16.16   $15.57   
    Efficiency Ratio59.55 % 54.93 % 53.21 % 48.23 % 61.65 % 
               
    Adjusted Operating Measures1:          
    Adjusted Net Income$29,350   $33,251   $35,497   $30,700   $27,336   
    Adjusted Diluted EPS0.51   0.59   0.63   0.55   0.50   
    Adjusted ROTA21.23 % 1.52 % 1.75 % 1.50 % 1.38 % 
    Adjusted ROTCE211.72   14.27   16.01   14.00   13.06   
    Adjusted Efficiency Ratio51.50   53.49   51.99   48.75   54.82   
    Net Adjusted Noninterest Expense as a
    Percent of Average Tangible Assets2    		1.95   1.98   2.16   2.00   2.24   
               
    Other Data:          
    Market capitalization3$1,972,784   $1,893,141   $2,003,866   $1,626,913   $994,690   
    Full-time equivalent employees995   946   953   965   968   
    Number of ATMs72   75   75   77   77   
    Full-service banking offices52   48   48   51   51   
    Registered online users133,977   129,568   126,352   123,615   121,620   
    Registered mobile devices126,730   122,815   117,959   115,129   110,241   
    1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP.
    2The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.
    3Common shares outstanding multiplied by closing bid price on last day of each period.

    Third Quarter Strategic Highlights

    Capitalizing on Seacoast’s Early Commitment to Digital Transformation

    • The Company continues to invest in providing a best-in-class customer experience across our branch network, call center, ATMs, and digital banking. We will introduce a fully upgraded online banking and mobile experience to both consumers and businesses in the first quarter of 2022. We believe investing in a leading data analytics practice, best-in-class digital offerings, exceptional branch services, and recruiting the highest quality commercial bankers in growth markets creates a unique and very competitive value proposition for customers across Florida.
    • A large-scale initiative to upgrade all ATMs across the network through a third-party partnership is nearly complete, providing our customers with an improved ATM experience and offering even more convenience through access to the Allpoint network. Allpoint provides the world’s largest surcharge-free ATM network, granting Seacoast customers fee-free access at more than 55,000 Allpoint ATM locations, with more than 2,700 throughout Florida. Allpoint ATMs can be found at local and national retailers including Walgreens, CVS, Target, Costco and RaceTrac.

    Driving Sustainable Growth and Expanding our Footprint

    • Seacoast continues to make investments to expand its footprint organically across the state, including into Northeast Florida and Naples/Ft. Myers, with key additions to its leadership and commercial banking team.
    • Brannon Fitch joined the leadership team as executive vice president and regional president for Northeast Florida to lead the bank’s strategic expansion into the region. Fitch joins Seacoast after almost two decades of executive leadership experience at BB&T, and will lead Seacoast’s strategic expansion into this important and fast growing market.
    • Additionally, Seacoast continues investing in expanding the footprint of its real estate lending division with the addition of Tim McLean as senior vice president of commercial real estate, who brings 33 years of commercial banking experience in the Naples market.
    • The Company expects to support further organic growth with the opening of two de novo branch locations, in Naples and in Plantation (Broward County), in the coming quarters.
    • Building on the recent expansion in commercial banking leadership, including the announcements in the prior quarter of James Norton, executive vice president and commercial real estate executive in Tampa, Chris Rolle, West Florida regional president, and Robert Hursh, Pinellas County market president, Seacoast has also continued building the commercial banking teams in its existing markets. This includes the addition of five commercial bankers across the franchise organically during the third quarter, and five additional bankers joining through the acquisition of Legacy Bank. These professionals all demonstrate a history of strong performance, generating growth through consistently winning new banking relationships and delivering exceptional customer experiences.
    • The Company’s recruiting pipeline is robust entering the fourth quarter. We expect to continue to make announcements regarding talent additions in the coming quarters.

    Scaling and Evolving Our Culture

    • Seacoast Bank has been named among Forbes Magazine’s 2021 America’s Best-In-State Banks and Credit Unions. Seacoast has the distinction of being the only Florida-based community bank to make the list. Forbes partnered with market research firm Statista to survey nearly 25,000 people in the U.S. about their banking relationships. Banks and credit unions were rated on overall recommendations and satisfaction, consumer trust, terms and conditions, branch services, digital services, and financial advice. Only 2.7% of all banks made the list.
    • In July, Seacoast Bank was named to the Orlando Business Journal’s 2021 Best Places to Work. This recognition reflects Seacoast’s commitment to employee well-being, as well as the Company’s numerous diversity and inclusion initiatives.

    OTHER INFORMATION

    Conference Call Information
    Seacoast will host a conference call on October 29, 2021 at 10:00 a.m. (Eastern Time) to discuss the third quarter 2021 earnings results and business trends. Investors may call in (toll-free) by dialing (800) 774-6070 (passcode: 6626 535; host: Charles Shaffer). Charts will be used during the conference call and may be accessed at Seacoast's website at www.SeacoastBanking.com by selecting "Presentations" under the heading "News/Events." A replay of the call will be available for one month, beginning late afternoon on October 29, 2021, and can be accessed via a link at www.SeacoastBanking.com under the heading “Corporate Information,” using the passcode 50236528.

    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 “Corporate Information.” Beginning late afternoon on October 29, 2021, 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 $9.9 billion in assets and $8.3 billion in deposits as of September 30, 2021. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, and 52 traditional branches of its locally-branded, wholly-owned subsidiary bank, Seacoast National 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. 

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

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

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

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

    Cautionary Notice Regarding Forward-Looking Statements
    This press release contains "forward-looking statements" within the meaning, and protections, of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, loan growth, 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, new initiatives and for integration of banks that we have acquired, or expect to acquire, including Legacy Bank of Florida, Florida Business Bank and Sabal Palm Bank, as well as statements with respect to Seacoast's objectives, strategic plans, expectations and intentions and other statements that are not historical facts, any of which may be impacted by the COVID-19 pandemic and any variants thereof and related effects on the U.S. economy. Actual results may differ from those set forth in the forward-looking statements.

    Forward-looking statements include statements with respect to 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 and the adverse impact of COVID-19 (economic and otherwise); governmental monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve, as well as legislative, tax and regulatory changes, including those that impact the money supply and inflation; changes in accounting policies, rules and practices, including the impact of the adoption of CECL; our participation in the Paycheck Protection Program ("PPP"); 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; changing retail distribution strategies, customer preferences and behavior; 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; 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 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, health emergencies, epidemics or pandemics, or other catastrophic events that may affect general economic conditions; unexpected outcomes of and the costs associated with, existing or new litigation involving 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.

    The risks relating to the Sabal Palm Bancorp, Inc. and Business Bank of Florida Corporation proposed mergers include, without limitation: the timing to consummate the proposed mergers; the risk that a condition to closing of the proposed mergers may not be satisfied; the risk that either proposed merger is not completed at all; the diversion of management time on issues related to the proposed mergers; unexpected transaction costs, including the costs of integrating operations; the risks that the businesses will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; the potential failure to fully or timely realize expected revenues and revenue synergies, including as the result of revenues following the mergers being lower than expected; the risk of deposit and customer attrition; any changes in deposit mix; unexpected operating and other costs, which may differ or change from expectation; the risk of customer and employee loss and business disruptions, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures on solicitations of customers by competitors; as well as difficulties and risks inherent with entering new markets.

    Actual results and capital and other financial conditions may differ materially from those included in these statements due to a variety of factors. These factors include, among others described above, macroeconomic and other challenges and uncertainties related to the COVID-19 pandemic, such as the duration and severity of the impact on public health, the U.S. and global economies, financial markets and consumer and corporate customers and clients, including economic activity and employment, as well as the various actions taken in response by governments, central banks and others, including Seacoast, and the precautionary statements included in this release.

    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, 2020 and quarterly report on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021 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 Nine Months Ended 
                   
    (Amounts in thousands, except ratios and per share data)3Q'21 2Q'21 1Q'21 4Q'20 3Q'20 3Q'21 3Q'20 
                   
    Summary of Earnings              
    Net income$22,944   $31,410   $33,719   $29,347   $22,628   $88,073   $48,417   
    Adjusted net income129,350   33,251   35,497   30,700   27,336   98,098   58,250   
    Net interest income271,455   65,933   66,741   68,903   63,621   204,129   194,300   
    Net interest margin2,33.22 % 3.23 % 3.51 % 3.59 % 3.40 % 3.32 % 3.67 % 
                   
    Performance Ratios              
    Return on average assets-GAAP basis30.93 % 1.40 % 1.61 % 1.39 % 1.11 % 1.29 % 0.84 % 
    Return on average tangible assets-GAAP basis3,41.00   1.48   1.70   1.49   1.20   1.37   0.93   
    Adjusted return on average tangible assets1,3,41.23   1.52   1.75   1.50   1.38   1.48   1.04   
    Net adjusted noninterest expense to average tangible assets1,3,41.95   1.98   2.16   2.00   2.24   2.03   2.26   
                   
    Return on average shareholders' equity-GAAP basis37.29   10.76   12.03   10.51   8.48   9.93   6.32   
    Return on average tangible common equity-GAAP basis3,49.56   13.88   15.62   13.87   11.35   12.89   8.71   
    Adjusted return on average tangible common equity1,3,411.72   14.27   16.01   14.00   13.06   13.91   9.80   
    Efficiency ratio559.55   54.93   53.21   48.23   61.65   55.99   57.15   
    Adjusted efficiency ratio151.50   53.49   51.99   48.75   54.82   52.29   52.64   
    Noninterest income to total revenue (excluding securities gains/losses)21.09   18.94   21.07   17.85   21.06   20.40   18.96   
    Tangible common equity to tangible assets410.62   10.43   10.71   11.01   10.67   10.62   10.67   
    Average loan-to-deposit ratio69.97   74.13   81.39   84.48   87.83   74.86   89.60   
    End of period loan-to-deposit ratio71.46   69.93   77.48   83.72   85.77   71.46   85.77   
                   
    Per Share Data              
    Net income diluted-GAAP basis$0.40   $0.56   $0.60   $0.53   $0.42   $1.56   $0.91   
    Net income basic-GAAP basis0.40   0.57   0.61   0.53   0.42   1.57   0.91   
    Adjusted earnings10.51   0.59   0.63   0.55   0.50   1.74   1.09   
                   
    Book value per share common22.12   21.33   20.89   20.46   19.91   22.12   19.91   
    Tangible book value per share17.52   17.08   16.62   16.16   15.57   17.52   15.57   
    Cash dividends declared0.13   0.13   —   —   —   0.26   —   
                   
                   
    1Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP.   
    2Calculated on a fully taxable equivalent basis using amortized cost.   
    3These ratios are stated on an annualized basis and are not necessarily indicative of future periods.   
    4The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.   
    5Defined as noninterest expense less amortization of intangibles and gains, losses, and expenses on foreclosed properties divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains and losses). 


    CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Unaudited)     
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES    
      
     Quarterly Trends Nine Months Ended
                  
    (Amounts in thousands, except per share data)3Q'21 2Q'21 1Q'21 4Q'20 3Q'20 3Q'21 3Q'20
                  
    Interest on securities:             
    Taxable$7,775  $6,559  $6,298  $6,477  $6,972  $20,632  $23,241  
    Nontaxable143  147  148  86  125  438  368  
    Fees on PPP loans5,218  3,877  5,390  3,603  161  14,485  4,171  
    Interest on PPP loans699  1,251  1,496  1,585  1,558  3,446  2,616  
    Interest and fees on loans - excluding PPP loans58,507  55,220  55,412  60,407  58,768  169,139  181,984  
    Interest on federal funds sold and other investments867  709  586  523  556  2,162  1,974  
    Total Interest Income73,209  67,763  69,330  72,681  68,140  210,302  214,354  
                  
    Interest on deposits849  980  1,065  1,228  1,299  2,894  5,692  
    Interest on time certificates583  524  1,187  2,104  2,673  2,294  11,261  
    Interest on borrowed money453  457  468  558  665  1,378  3,449  
    Total Interest Expense1,885  1,961  2,720  3,890  4,637  6,566  20,402  
                  
    Net Interest Income71,324  65,802  66,610  68,791  63,503  203,736  193,952  
    Provision for credit losses5,091  (4,855) (5,715) 1,900  (845) (5,479) 36,279  
    Net Interest Income After Provision for Credit Losses66,233  70,657  72,325  66,891  64,348  209,215  157,673  
                  
    Noninterest income:             
    Service charges on deposit accounts2,495  2,338  2,338  2,423  2,242  7,171  7,006  
    Interchange income4,131  4,145  3,820  3,596  3,682  12,096  10,115  
    Wealth management income2,562  2,387  2,323  1,949  1,972  7,272  5,558  
    Mortgage banking fees2,550  2,977  4,225  3,646  5,283  9,752  11,050  
    Marine finance fees152  177  189  145  242  518  545  
    SBA gains812  232  287  113  252  1,331  572  
    BOLI income1,128  872  859  889  899  2,859  2,672  
    Other5,228  2,249  3,744  2,187  2,370  11,221  7,869  
     19,058  15,377  17,785  14,948  16,942  52,220  45,387  
    Securities (losses) gains, net(30) (55) (114) (18) 4  (199) 1,253  
    Total Noninterest Income19,028  15,322  17,671  14,930  16,946  52,021  46,640  
                  
    Noninterest expenses:             
    Salaries and wages27,919  22,966  21,393  21,490  23,125  72,278  67,049  
    Employee benefits4,177  3,953  4,980  3,915  3,995  13,110  11,629  
    Outsourced data processing costs5,610  4,676  4,468  4,233  6,128  14,754  14,820  
    Telephone / data lines810  838  785  774  705  2,433  2,210  
    Occupancy3,541  3,310  3,789  3,554  3,858  10,640  10,596  
    Furniture and equipment1,567  1,166  1,254  1,317  1,576  3,987  4,557  
    Marketing1,353  1,002  1,168  1,045  1,513  3,523  3,788  
    Legal and professional fees4,151  2,182  2,582  509  3,018  8,915  8,658  
    FDIC assessments651  515  526  528  474  1,692  740  
    Amortization of intangibles1,306  1,212  1,211  1,421  1,497  3,729  4,436  
    Foreclosed property expense and net (gain) loss on sale66  (90) (65) 1,821  512  (89) 442  
    Provision for credit losses on unfunded commitments133  —  —  (795) 756  133  980  
    Other3,984  4,054  4,029  3,869  4,517  12,067  11,966  
    Total Noninterest Expense55,268  45,784  46,120  43,681  51,674  147,172  141,871  
                  
    Income Before Income Taxes29,993  40,195  43,876  38,140  29,620  114,064  62,442  
    Income taxes7,049  8,785  10,157  8,793  6,992  25,991  14,025  
                  
    Net Income$22,944  $31,410  $33,719  $29,347  $22,628  $88,073  $48,417  
                  
    Per share of common stock:             
                  
    Net income diluted$0.40  $0.56  $0.60  $0.53  $0.42  $1.56  $0.91  
    Net income basic0.40  0.57  0.61  0.53  0.42  1.57  0.91  
    Cash dividends declared0.13  0.13  —  —  —  0.26  —  
                  
    Average diluted shares outstanding57,645  55,901  55,992  55,739  54,301  56,441  53,325  
    Average basic shares outstanding57,148  55,421  55,271  55,219  53,978  55,954  52,926  
                  


    CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited) 
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
        
      September 30, June 30, March 31, December 31, September 30, 
    (Amounts in thousands) 2021 2021 2021 2020 2020 
                
    Assets           
    Cash and due from banks $199,460  $97,468  $89,123  $86,630  $81,692  
    Interest bearing deposits with other banks 1,028,235  1,351,377  890,202  317,458  227,876  
    Total Cash and Cash Equivalents 1,227,695  1,448,845  979,325  404,088  309,568  
                
    Time deposits with other banks 750  750  750  750  2,247  
                
    Debt Securities:           
    Available for sale (at fair value) 1,546,155  1,322,776  1,051,396  1,398,157  1,286,858  
    Held to maturity (at amortized cost) 526,502  493,467  512,307  184,484  207,376  
    Total Debt Securities 2,072,657  1,816,243  1,563,703  1,582,641  1,494,234  
                
    Loans held for sale 49,597  42,793  60,924  68,890  73,046  
                
    Loans 5,905,884  5,437,049  5,661,492  5,735,349  5,858,029  
    Less: Allowance for credit losses (87,823) (81,127) (86,643) (92,733) (94,013) 
    Net Loans 5,818,061  5,355,922  5,574,849  5,642,616  5,764,016  
                
    Bank premises and equipment, net 71,250  69,392  70,385  75,117  76,393  
    Other real estate owned 13,628  12,804  15,549  12,750  15,890  
    Goodwill 252,154  221,176  221,176  221,176  221,176  
    Other intangible assets, net 16,153  14,106  15,382  16,745  18,163  
    Bank owned life insurance 193,747  158,506  132,634  131,776  130,887  
    Net deferred tax assets 24,187  21,839  24,497  23,629  25,503  
    Other assets 153,619  154,457  152,646  162,214  156,717  
    Total Assets $9,893,498  $9,316,833  $8,811,820  $8,342,392  $8,287,840  
                
    Liabilities and Shareholders' Equity           
    Liabilities           
    Deposits           
    Noninterest demand $3,086,466  $2,952,160  $2,685,247  $2,289,787  $2,400,744  
    Interest-bearing demand 1,845,165  1,763,884  1,647,935  1,566,069  1,385,445  
    Savings 834,309  811,516  768,362  689,179  655,072  
    Money market 1,951,639  1,807,190  1,671,179  1,556,370  1,457,078  
    Other time certificates 437,973  335,370  373,297  425,878  457,964  
    Brokered time certificates 20,000  20,000  93,500  233,815  381,028  
    Time certificates of more than $250,000 158,620  146,316  146,229  171,463  177,512  
    Total Deposits 8,334,172  7,836,436  7,385,749  6,932,561  6,914,843  
                
    Securities sold under agreements to repurchase 105,548  119,973  109,171  119,609  89,508  
    Federal Home Loan Bank borrowings —   —  —  —  35,000  
    Subordinated debt 71,576  71,506  71,436  71,365  71,295  
    Other liabilities 91,682  106,571  90,115  88,455  78,853  
    Total Liabilities 8,602,978  8,134,486  7,656,471  7,211,990  7,189,499  
                
    Shareholders' Equity           
    Common stock 5,835  5,544  5,529  5,524  5,517  
    Additional paid in capital 959,644  862,598  858,688  856,092  854,188  
    Retained earnings 329,918  314,584  290,420  256,701  227,354  
    Treasury stock (10,146) (10,180) (8,693) (8,285) (7,941) 
      1,285,251  1,172,546  1,145,944  1,110,032  1,079,118  
    Accumulated other comprehensive income, net 5,269  9,801  9,405  20,370  19,223  
    Total Shareholders' Equity 1,290,520  1,182,347  1,155,349  1,130,402  1,098,341  
    Total Liabilities & Shareholders' Equity $9,893,498  $9,316,833  $8,811,820  $8,342,392  $8,287,840  
                
    Common shares outstanding 58,349  55,436  55,294  55,243  55,169  
                


    CONSOLIDATED QUARTERLY FINANCIAL DATA(Unaudited) 
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
       
       
               
    (Amounts in thousands)3Q'21 2Q'21 1Q'21 4Q'20 3Q'20 
               
    Credit Analysis          
    Net charge-offs - non-acquired loans$198   $214  $292  $3,028  $1,112  
    Net charge-offs - acquired loans1,234   441  78  99  624  
    Total Net Charge-offs 1,432   655  370  3,127  1,736  
               
    Net charge-offs to average loans - non-acquired loans0.01 % 0.02% 0.02% 0.20% 0.08% 
    Net charge-offs to average loans - acquired loans0.09   0.03  0.01  0.01  0.04  
    Total Net Charge-offs to Average Loans0.10   0.05  0.03  0.21  0.12  
               
    Allowance for credit losses - non-acquired loans$64,740   $64,525  $66,523  $69,786  $70,388  
    Allowance for credit losses - acquired loans23,083   16,602  20,120  22,947  23,625  
    Total Allowance for Credit Losses$87,823   $81,127  $86,643  $92,733  $94,013  
               
    Non-acquired loans at end of period$4,608,801   $4,290,622  $4,208,911  $4,196,205  $4,157,376  
    Acquired loans at end of period1,106,481   782,315  870,928  972,183  1,061,853  
    Paycheck Protection Program loans at end of period1190,602   364,112  581,653  566,961  638,800  
    Total Loans$5,905,884   $5,437,049  $5,661,492  $5,735,349  $5,858,029  
               
    Non-acquired loans allowance for credit losses to non-acquired loans at end of period1.40 % 1.50% 1.58% 1.66% 1.69% 
    Total allowance for credit losses to total loans at end of period1.49   1.49  1.53  1.62  1.60  
    Total allowance for credit losses to total loans, excluding PPP loans1.54   1.60  1.71  1.79  1.80  
    Purchase discount on acquired loans at end of period2.27   2.98  2.93  2.86  3.01  
               
    End of Period          
    Nonperforming loans$32,612   $32,920  $35,328  $36,110  $36,897  
    Other real estate owned11,843   11,019  10,836  10,182  12,299  
    Properties previously used in bank operations included in other real estate owned1,785   1,785  4,713  2,569  3,592  
    Total Nonperforming Assets$46,240   $45,724  $50,877  $48,861  $52,788  
               
    Accruing troubled debt restructures (TDRs)$4,047   $4,037  $4,067  $4,182  $10,190  
               
    Nonperforming Loans to Loans at End of Period0.55 % 0.61% 0.62% 0.63% 0.63% 
    Nonperforming Assets to Total Assets at End of Period0.47   0.49  0.58  0.59  0.64  
               
     September 30, June 30, March 31, December 31, September 30, 
    Loans2021 2021 2021 2020 2020 
               
    Construction and land development$227,459   $234,347  $227,117  $245,108  $280,610  
    Commercial real estate - owner occupied1,201,336   1,127,640  1,133,085  1,141,310  1,125,460  
    Commercial real estate - non-owner occupied1,673,587   1,412,439  1,438,365  1,395,854  1,394,464  
    Residential real estate1,467,329   1,226,536  1,246,549  1,342,628  1,393,396  
    Commercial and financial982,552   900,206  860,813  854,753  833,083  
    Consumer163,019   171,769  173,910  188,735  192,216  
    Paycheck Protection Program190,602   364,112  581,653  566,961  638,800  
    Total Loans$5,905,884   $5,437,049  $5,661,492  $5,735,349  $5,858,029  
               
    13Q'21 includes $39 million in Paycheck Protection Program loans acquired from Legacy Bank and 3Q'20 includes $54 million acquired from Freedom Bank. 


    AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1(Unaudited) 
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
                       
                       
     3Q'21 2Q'21 3Q'20 
     Average   Yield/ Average   Yield/ Average   Yield/ 
    (Amounts in thousands)Balance Interest Rate Balance Interest Rate Balance Interest Rate 
                       
    Assets                  
    Earning assets:                  
    Securities:                  
    Taxable$1,971,520  $7,775   1.58 % $1,629,410  $6,559  1.61% $1,322,160  $6,972  2.11% 
    Nontaxable25,311  181   2.86   25,581  186  2.90  23,570  157  2.67  
    Total Securities1,996,831  7,956   1.59   1,654,991  6,745  1.63  1,345,730  7,129  2.12  
                       
    Federal funds sold and other investments1,091,997  867   0.31   925,323  709  0.31  239,511  556  0.92  
                       
    Loans excluding PPP loans5,422,350  58,600   4.29   5,092,897  55,313  4.36  5,242,776  58,854  4.47  
    PPP loans281,724  5,917   8.33   505,339  5,127  4.07  618,088  1,719  1.11  
    Total Loans5,704,074  64,517   4.49   5,598,236  60,440  4.33  5,860,864  60,573  4.11  
                       
    Total Earning Assets8,792,902  73,340   3.31   8,178,550  67,894  3.33  7,446,105  68,258  3.65  
                       
    Allowance for credit losses(88,412)     (86,042)     (92,151)     
    Cash and due from banks386,781      327,171      138,749      
    Premises and equipment70,667      70,033      72,572      
    Intangible assets254,980      235,964      228,801      
    Bank owned life insurance164,879      133,484      129,156      
    Other assets171,937      166,686      163,658      
                       
    Total Assets$9,753,734      $9,025,846      $8,086,890      
                       
    Liabilities and Shareholders' Equity                  
    Interest-bearing liabilities:                  
    Interest-bearing demand$1,891,092  $219   0.05 % $1,692,178  $235  0.06% $1,364,947  $330  0.10% 
    Savings842,018  65   0.03   790,734  118  0.06  648,319  170  0.10  
    Money market1,860,386  565   0.12   1,736,481  627  0.14  1,328,931  799  0.24  
    Time deposits572,661  583   0.40   533,350  524  0.39  1,051,316  2,673  1.01  
    Securities sold under agreements to repurchase120,507  35   0.12   115,512  35  0.12  90,357  40  0.18  
    Federal Home Loan Bank borrowings—   —   —   —  —  —  93,913  181  0.77  
    Other borrowings71,530  418   2.32   71,460  422  2.37  71,258  444  2.48  
                       
    Total Interest-Bearing Liabilities5,358,194  1,885   0.14   4,939,715  1,961  0.16  4,649,041  4,637  0.40  
                       
    Noninterest demand2,985,582      2,799,643      2,279,584      
    Other liabilities161,411      116,093      96,458      
    Total Liabilities8,505,187      7,855,451      7,025,083      
                       
    Shareholders' equity1,248,547      1,170,395      1,061,807      
                       
    Total Liabilities & Equity$9,753,734      $9,025,846      $8,086,890      
                       
    Cost of deposits    0.07 %     0.08%     0.24% 
    Interest expense as a % of earning assets    0.09 %     0.10%     0.25% 
    Net interest income as a % of earning assets  $71,455   3.22 %   $65,933  3.23%   $63,621  3.40% 
                       
                       
    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.     


       
     Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 
     Average   Yield/ Average   Yield/ 
    (Amounts in thousands, except ratios)Balance Interest Rate Balance Interest Rate 
                 
    Assets            
    Earning assets:            
    Securities:            
    Taxable$1,718,671  $20,632   1.60 % $1,203,877  $23,241  2.57% 
    Nontaxable25,606  554   2.88   20,895  461  2.94  
    Total Securities1,744,277  21,186   1.62   1,224,772  23,702  2.58  
                 
    Federal funds sold and other investments800,839  2,162   0.36   253,635  1,974  1.04  
                 
    Loans excluding PPP loans5,222,629  169,417   4.34   5,254,089  182,239  4.63  
    PPP loans464,397  17,930   5.16   348,407  6,787  2.60  
    Total Loans5,687,026  187,347   4.40   5,602,496  189,026  4.51  
                 
    Total Earning Assets8,232,142  210,695   3.42   7,080,903  214,702  4.05  
                 
    Allowance for credit losses(88,717)     (78,067)     
    Cash and due from banks323,693      111,019      
    Premises and equipment71,644      70,451      
    Intangible assets242,820      228,795      
    Bank owned life insurance143,601      127,683      
    Other asset167,775      145,827      
                 
    Total Assets$9,092,958      $7,686,611      
                 
    Liabilities and Shareholders' Equity            
    Interest-bearing liabilities:            
    Interest-bearing demand$1,728,985  $712   0.06 % $1,279,485  $1,461  0.15% 
    Savings785,447  320   0.05   588,913  683  0.15  
    Money market1,736,519  1,862   0.14   1,217,627  3,548  0.39  
    Time deposits605,269  2,294   0.51   1,165,194  11,261  1.29  
    Securities sold under agreements to repurchase116,304  112   0.13   78,755  241  0.41  
    Federal Home Loan Bank borrowings—   —   —   180,893  1,460  1.08  
    Other borrowings71,460  1,266   2.37   71,186  1,748  3.28  
                 
    Total Interest-Bearing Liabilities5,043,984  6,566   0.17   4,582,053  20,402  0.59  
                 
    Noninterest demand2,741,115      2,001,630      
    Other liabilities122,329      79,821      
    Total Liabilities7,907,428      6,663,504      
                 
    Shareholders' equity1,185,530      1,023,107      
                 
    Total Liabilities & Equity$9,092,958      $7,686,611      
                 
    Cost of deposits    0.09 %     0.36% 
    Interest expense as a % of earning assets    0.11 %     0.38% 
    Net interest income as a % of earning assets  $204,129   3.32 %   $194,300  3.67% 
                 
                 
    1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.
    Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.


    CONSOLIDATED QUARTERLY FINANCIAL DATA(Unaudited) 
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
         
       September 30, June 30, March 31, December 31, September 30, 
    (Amounts in thousands) 2021 2021 2021 2020 2020 
                 
    Customer Relationship Funding           
    Noninterest demand           
    Commercial  $2,535,922   $2,431,928  $2,189,564  $1,821,361  $1,973,494  
    Retail  416,779   401,988  379,257  350,783  322,559  
    Public funds  84,337   88,057  83,315  90,973  70,371  
    Other  49,428   30,187  33,111  26,670  34,320  
    Total Noninterest Demand 3,086,466   2,952,160  2,685,247  2,289,787  2,400,744  
                 
    Interest-bearing demand           
    Commercial  554,366   545,797  497,047  454,909  413,513  
    Retail  1,069,668   958,619  895,853  839,958  777,078  
    Public funds  221,131   259,468  255,035  271,202  194,854  
    Total Interest-Bearing Demand 1,845,165   1,763,884  1,647,935  1,566,069  1,385,445  
                 
    Total transaction accounts           
    Commercial  3,090,288   2,977,725  2,686,611  2,276,270  2,387,007  
    Retail  1,486,447   1,360,607  1,275,110  1,190,741  1,099,637  
    Public funds  305,468   347,525  338,350  362,175  265,225  
    Other  49,428   30,187  33,111  26,670  34,320  
    Total Transaction Accounts 4,931,631   4,716,044  4,333,182  3,855,856  3,786,189  
                 
    Savings  834,309   811,516  768,362  689,179  655,072  
                 
    Money market           
    Commercial  827,901   787,894  692,537  611,623  634,697  
    Retail  834,628   737,554  701,453  661,311  613,532  
    Brokered  196,548   187,023  197,389  196,616  141,808  
    Public funds  92,562   94,719  79,800  86,820  67,041  
    Total Money Market 1,951,639   1,807,190  1,671,179  1,556,370  1,457,078  
                 
    Brokered time certificates 20,000   20,000  93,500  233,815  381,028  
    Other time certificates 596,593   481,686  519,526  597,341  635,476  
      616,593   501,686  613,026  831,156  1,016,504  
    Total Deposits $8,334,172   $7,836,436  $7,385,749  $6,932,561  $6,914,843  
                 
    Customer sweep accounts $105,548   $119,973  $109,171  $119,609  $89,508  
                 


    Explanation of Certain Unaudited Non-GAAP Financial Measures

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

    GAAP TO NON-GAAP RECONCILIATION(Unaudited) 
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
                  
     Quarterly Trends Nine Months Ended
                  
    (Amounts in thousands, except per share data)3Q'21 2Q'21 1Q'21 4Q'20 3Q'20 3Q'21 3Q'20
                  
    Net Income$22,944   $31,410   $33,719   $29,347   $22,628   $88,073   $48,417  
                  
    Total noninterest income19,028   15,322   17,671   14,930   16,946   52,021   46,640  
    Securities losses (gains), net30   55   114   18   (4)  199   (1,253) 
    Total Adjustments to Noninterest Income30   55   114   18   (4)  199   (1,253) 
    Total Adjusted Noninterest Income19,058   15,377   17,785   14,948   16,942   52,220   45,387  
                  
    Total noninterest expense55,268   45,784   46,120   43,681   51,674   147,172   141,871  
    Merger related charges(6,281)  (509)  (581)  —   (4,281)  (7,371)  (9,074) 
    Amortization of intangibles(1,306)  (1,212)  (1,211)  (1,421)  (1,497)  (3,729)  (4,436) 
    Business continuity expenses—    —   —   —   —   —    (307) 
    Branch reductions and other expense initiatives(870)  (663)  (449)  (354)  (464)  (1,982)  (464) 
    Total Adjustments to Noninterest Expense(8,457)  (2,384)  (2,241)  (1,775)  (6,242)  (13,082)  (14,281) 
    Total Adjusted Noninterest Expense46,811   43,400   43,879   41,906   45,432   134,090   127,590  
                  
    Income Taxes7,049   8,785   10,157   8,793   6,992   25,991   14,025  
    Tax effect of adjustments2,081   598   577   440   1,530   3,256   3,195  
    Total Adjustments to Income Taxes2,081   598   577   440   1,530   3,256   3,195  
    Adjusted Income Taxes9,130   9,383   10,734   9,233   8,522   29,247   17,220  
    Adjusted Net Income$29,350   $33,251   $35,497   $30,700   $27,336   $98,098   $58,250  
                  
    Earnings per diluted share, as reported$0.40   $0.56   $0.60   $0.53   $0.42   $1.56   $0.91  
    Adjusted Earnings per Diluted Share 0.51   0.59   0.63   0.55   0.50   1.74   1.09  
    Average diluted shares outstanding57,645   55,901   55,992   55,739   54,301   56,441   53,325  
                  
    Adjusted Noninterest Expense$46,811   $43,400   $43,879   $41,906   $45,432   $134,090   $127,590  
    Provision for credit losses on unfunded commitments(133)  —   —   795   (756)  (133)  (980) 
    Foreclosed property expense and net gain / (loss) on sale(66)  90   65   (1,821)  (512)  89   (442) 
    Net Adjusted Noninterest Expense$46,612   $43,490   $43,944   $40,880   $44,164   $134,046   $126,168  
                  
    Revenue$90,352   $81,124   $84,281   $83,721   $80,449   $255,757   $240,592  
    Total Adjustments to Revenue30   55   114   18   (4)  199   (1,253) 
    Impact of FTE adjustment131   131   131   112   118   393   348  
    Adjusted Revenue on a fully taxable equivalent basis$90,513   $81,310   $84,526   $83,851   $80,563   $256,349   $239,687  
    Adjusted Efficiency Ratio51.50 % 53.49 % 51.99 % 48.75 % 54.82 % 52.29 % 52.64 %
                  
    Net Interest Income$71,324   $65,802   $66,610   $68,791   $63,503   $203,736   $193,952  
    Impact of FTE adjustment131   131   131   112   118   393   348  
    Net Interest Income including FTE adjustment$71,455   $65,933   $66,741   $68,903   $63,621   $204,129   $194,300  
    Total noninterest income19,028   15,322   17,671   14,930   16,946   52,021   46,640  
    Total noninterest expense55,268   45,784   46,120   43,681   51,674   147,172   141,871  
    Pre-Tax Pre-Provision Earnings$35,215   $35,471   $38,292   $40,152   $28,893   $108,978   $99,069  
    Total Adjustments to Noninterest Income30   55   114   18   (4)  199   (1,253) 
    Total Adjustments to Noninterest Expense(8,656)  (2,294)  (2,176)  (2,801)  (7,510)  (13,126)  (15,703) 
    Adjusted Pre-Tax Pre-Provision Earnings$43,901   $37,820   $40,582   $42,971   $36,399   $122,303   $113,519  
                  
    Average Assets$9,753,734   $9,025,846   $8,485,354   $8,376,396   $8,086,890   $9,092,958   $7,686,611  
    Less average goodwill and intangible assets(254,980)  (235,964)  (237,323)  (238,631)  (228,801)  (242,820)  (228,795) 
    Average Tangible Assets$9,498,754   $8,789,882   $8,248,031   $8,137,765   $7,858,089   $8,850,138   $7,457,816  
                  
    Return on Average Assets (ROA)0.93 % 1.40 % 1.61 % 1.39 % 1.11 % 1.29 % 0.84 %
    Impact of removing average intangible assets and related amortization0.07   0.08   0.09   0.10   0.09   0.08   0.09  
    Return on Average Tangible Assets (ROTA)1.00   1.48   1.70   1.49   1.20   1.37   0.93  
    Impact of other adjustments for Adjusted Net Income0.23   0.04   0.05   0.01   0.18   0.11   0.11  
    Adjusted Return on Average Tangible Assets1.23   1.52   1.75   1.50   1.38   1.48   1.04  
                  
    Average Shareholders' Equity$1,248,547   $1,170,395   $1,136,416   $1,111,073   $1,061,807   $1,185,530   $1,023,107  
    Less average goodwill and intangible assets(254,980)  (235,964)  (237,323)  (238,631)  (228,801)  (242,820)  (228,795) 
    Average Tangible Equity$993,567   $934,431   $899,093   $872,442   $833,006   $942,710   $794,312  
                  
    Return on Average Shareholders' Equity7.29 % 10.76 % 12.03 % 10.51 % 8.48 % 9.93 % 6.32 %
    Impact of removing average intangible assets and related amortization2.27   3.12   3.59   3.36   2.87   2.96   2.39  
    Return on Average Tangible Common Equity (ROTCE)9.56   13.88   15.62   13.87   11.35   12.89   8.71  
    Impact of other adjustments for Adjusted Net Income2.16   0.39   0.39   0.13   1.71   1.02   1.09  
    Adjusted Return on Average Tangible Common Equity 11.72   14.27   16.01   14.00   13.06   13.91   9.80  
                  
    Loan interest income1$64,517   $60,440   $62,390   $65,684   $60,573   $187,347   $189,026  
    Accretion on acquired loans(3,483)  (2,886)  (2,868)  (4,448)  (3,254)  (9,237)  (10,529) 
    Interest and fees on PPP loans(5,917)  (5,127)  (6,886)  (5,187)  (1,719)  (17,930)  (6,787) 
    Loan interest income excluding PPP and accretion on acquired loans$55,117   $52,427   $52,636   $56,049   $55,600   $160,180   $171,710  
                  
    Yield on loans14.49   4.33   4.39   4.42   4.11   4.40   4.51  
    Impact of accretion on acquired loans(0.24)  (0.21)  (0.20)  (0.30)  (0.22)  (0.21)  (0.25) 
    Impact of PPP loans(0.22)  0.01   (0.04)  0.11   0.33   (0.09)  0.11  
    Yield on loans excluding PPP and accretion on acquired loans4.03 % 4.13 % 4.15 % 4.23 % 4.22 % 4.10 % 4.37 %
                  
    Net Interest Income1$71,455   $65,933   $66,741   $68,903   $63,621   $204,129   $194,300  
    Accretion on acquired loans(3,483)  (2,886)  (2,868)  (4,448)  (3,254)  (9,237)  (10,529) 
    Interest and fees on PPP loans(5,917)  (5,127)  (6,886)  (5,187)  (1,719)  (17,930)  (6,787) 
    Net interest income excluding PPP and accretion on acquired loans$62,055   $57,920   $56,987   $59,268   $58,648   $176,962   $176,984  
                  
    Net Interest Margin3.22   3.23   3.51   3.59   3.40   3.32   3.67  
    Impact of accretion on acquired loans(0.15)  (0.14)  (0.15)  (0.23)  (0.17)  (0.15)  (0.20) 
    Impact of PPP loans(0.18)  (0.06)  (0.11)  0.01   0.19   (0.12)  0.04  
    Net interest margin excluding PPP and accretion on acquired loans2.89 % 3.03 % 3.25 % 3.37 % 3.42 % 3.05 % 3.51 %
                  
    Security interest income1$7,956   $6,745   $6,485   $6,586   $7,129   $21,186   $23,702  
    Tax equivalent adjustment on securities(38)  (39)  (39)  (23)  (32)  (116)  (93) 
    Security interest income excluding tax equivalent adjustment$7,918   $6,706   $6,446   $6,563   $7,097   $21,070   $23,609  
                  
    Loan interest income1$64,517   $60,440   $62,390   $65,684   $60,573   $187,347   $189,026  
    Tax equivalent adjustment on loans(93)  (92)  (92)  (89)  (86)  (277)  (255) 
    Loan interest income excluding tax equivalent adjustment$64,424   $60,348   $62,298   $65,595   $60,487   $187,070   $188,771  
                  
    Net Interest Income1$71,455   $65,933   $66,741   $68,903   $63,621   $204,129   $194,300  
    Tax equivalent adjustment on securities(38)  (39)  (39)  (23)  (32)  (116)  (93) 
    Tax equivalent adjustment on loans(93)  (92)  (92)  (89)  (86)  (277)  (255) 
    Net interest income excluding tax equivalent adjustment$71,324   $65,802   $66,610   $68,791   $63,503   $203,736   $193,952  
                  
    1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.

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