• Seacoast Reports Third Quarter 2022 Results

    Источник: Nasdaq GlobeNewswire / 27 окт 2022 15:42:16   America/Chicago

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

    Well-Positioned Balance Sheet with Strong Capital and Liquidity

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

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

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

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

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

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

    Acquisitions Update

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

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

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

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

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

    Update on Hurricane Ian

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

    Financial Results

    Income Statement

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

    Balance Sheet

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

    Asset Quality

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

    Capital and Liquidity

    • The Company continues to operate with a fortress balance sheet, with a tier 1 capital ratio at September 30, 2022, of 16.5% compared to 16.8% at June 30, 2022, and 17.7% at September 30, 2021. The total capital ratio was 17.5% and the tier 1 leverage ratio was 12.1% at September 30, 2022.
    • Cash and cash equivalents at September 30, 2022 totaled $218.6 million, with decreases from the prior quarter resulting from loan growth, more modest deployment of liquidity in investments in the securities portfolio, and deposit outflows.
    • Tangible common equity to tangible assets was 9.79% at September 30, 2022, compared to 9.74% at June 30, 2022, and 10.62% at September 30, 2021. Declines in the value of available for sale securities due to rising interest rates in 2022 negatively impacted equity year to date by $180.2 million.

    • At September 30, 2022, the Company had available unsecured lines of credit of $165.0 million and lines of credit under lendable collateral value of $2.1 billion. Additionally, $2.1 billion of debt securities and $959.3 million of residential and commercial real estate loans are available as collateral for potential borrowings.

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

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

    Third Quarter 2022 Strategic Highlights

    Capitalizing on Seacoast’s Commitment to Digital Transformation

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

    Driving Sustainable Growth and Expanding our Footprint

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

    Scaling and Evolving Our Culture

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

    OTHER INFORMATION

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

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

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

    Additional Information

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

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

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

    Cautionary Notice Regarding Forward-Looking Statements

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

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

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

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

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

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


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


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


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


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


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


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


    Explanation of Certain Unaudited Non-GAAP Financial Measures

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

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

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

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