EX-99.1 2 a1q2022earningsrelease.htm EX-99.1 1Q2022 Earnings Release
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SEACOAST REPORTS FIRST QUARTER 2022 RESULTS
Disciplined Loan Growth, Strong Deposit Growth, and Rising Net Interest Margin Highlight Q1 Results
Well-Positioned Balance Sheet with Strong Capital and Liquidity

STUART, Fla., April 28, 2022 /GLOBE NEWSWIRE/ -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the first quarter of 2022 of $20.6 million, or $0.33 per diluted share, which includes merger-related costs and a $5.1 million increase in the provision for credit losses associated with acquisition activity during the quarter. First quarter 2022 results represent a decrease of 43% compared to the fourth quarter of 2021, and a decrease of 39% compared to the first quarter of 2021. Adjusted net income1 for the first quarter of 2022 was $27.1 million, or $0.44 per diluted share, which includes the $5.1 million increase in the provision for credit losses associated with acquisition activity. First quarter 2022 adjusted results represent a decrease of 27% compared to the fourth quarter of 2021, and a decrease of 24% compared to the first quarter of 2021. At March 31, 2022, the ratio of tangible common equity to tangible assets was 9.89%, and tangible book value per share was $17.12. A decline in the value of the available for sale securities portfolio driven by rising interest rates during the period impacted the ratio of tangible common equity to tangible assets by 56 basis points and impacted tangible book value per share by $1.07.
For the first quarter of 2022, return on average tangible assets was 0.85%, return on average tangible shareholders' equity was 8.02%, and the efficiency ratio was 62.33%, compared to 1.51%, 14.29%, and 53.70%, respectively, in the prior quarter, and 1.70%, 15.62%, and 53.21%, respectively, in the prior year quarter. Adjusted return on average tangible assets1 in the first quarter of 2022 was 1.06%, adjusted return on average tangible shareholders' equity1 was 10.01%, and the adjusted efficiency ratio1 was 54.86%, compared to 1.49%, 14.11%, and 53.43%, respectively, in the prior quarter, and 1.75%, 16.01%, and 51.99%, respectively, in the prior year quarter.
Charles M. Shaffer, Seacoast's Chairman and CEO, said, “Seacoast’s investments in high-performing commercial banking talent across Florida drove disciplined organic loan growth this quarter and a material increase in the late-stage pipeline entering the second quarter. With broad expectations for rising rates, we believe that Seacoast’s asset-sensitive balance sheet and ample liquidity position us well for growth and the continued expansion of net interest margin, which increased nine basis points during the first quarter of 2022, and rose 14 basis points excluding the effects of PPP and accretion on acquired loans.”
“In the first quarter of 2022, we established a new market presence in Naples, Sarasota, and Jacksonville, and announced the proposed acquisition of Apollo Bancshares, Inc., bringing us five locations in Miami-Dade County. We believe that this expansion into some of the best banking markets in the United States will lead to strong franchise value creation in the coming years,” Shaffer added.
Acquisitions Update
On January 3, 2022, the Company completed the acquisitions of Sabal Palm Bancorp, Inc. (“Sabal Palm”) in Sarasota, and Business Bank of Florida Corp. (“BBFC”) in Brevard County, which added a combined $367.9 million in loans, $562.3 million in deposits, and a $5.1 million provision for credit losses at acquisition. Consolidation activities for BBFC, including system conversion, are substantially complete. System conversion for Sabal Palm is planned early in the second quarter of 2022.
On March 29, 2022, the Company announced its proposed acquisition of Apollo Bancshares, Inc. (“Apollo”). The transaction, which is expected to close early in the fourth quarter of 2022, will expand the Company’s presence in Miami-Dade County, which is part of the Miami-Fort Lauderdale-Pompano Beach MSA, Florida’s largest MSA and the 8th largest in the nation. Apollo operates five branches across Miami-Dade County with deposits of approximately $947 million and loans of $705 million as of March 31, 2022.



1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.
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Financial Results
Income Statement
•Net income was $20.6 million, or $0.33 per diluted share for the first quarter of 2022, which includes $6.7 million in merger-related costs associated with acquisition activity during the quarter, and a $5.1 million increase in the provision for credit losses associated with onboarding Sabal Palm and BBFC. This compares to net income of $36.3 million, or $0.62, for the prior quarter, and $33.7 million, or $0.60, for the prior year quarter. Adjusted net income1 for the first quarter of 2022 was $27.1 million, or $0.44 per diluted share, which includes the $5.1 million increase in the provision for credit losses associated with onboarding Sabal Palm and BBFC. This compares to $36.9 million, or $0.62, for the prior quarter, and $35.5 million, or $0.63, for the prior year quarter. In the first quarter of 2022, loan growth including bank acquisitions resulted in a provision for credit losses of $6.6 million, compared to a reversal of provision of $3.9 million in the fourth quarter of 2021 and a reversal of provision of $5.7 million in the first quarter of 2021. Excluded from adjusted net income are $6.7 million in merger-related expenses in the first quarter of 2022, compared to $0.5 million in the fourth quarter of 2021 and $0.6 million in the first quarter of 2021.
•Net revenues were $91.9 million in the first quarter of 2022, an increase of $0.9 million, or 1%, compared to the prior quarter, and an increase of $7.6 million, or 9%, compared to the prior year quarter. Adjusted revenues1 were $92.3 million in the first quarter of 2022, an increase of $1.7 million, or 2%, compared to the prior quarter, and an increase of $8.0 million, or 9%, compared to the prior year quarter.
•Net interest income totaled $76.5 million in the first quarter of 2022, an increase of $4.2 million, or 6%, from the fourth quarter of 2021, and an increase of $9.9 million, or 15%, compared to the first quarter of 2021. Increases relating to higher balances and higher yields on securities and loans were partially offset by declines in PPP interest and fees, while interest expense remained flat.
•Net interest margin increased to 3.25% in the first quarter of 2022 compared to 3.16% in the fourth quarter of 2021, the result of higher yields on non-PPP loans and on securities. Excluding the effect of PPP and accretion on acquired loans, net interest margin increased 14 basis points to 3.05% in the first quarter of 2022 from 2.91% in the fourth quarter of 2021. Securities yields increased 11 basis points to 1.68%, reflecting the impact of the addition of higher yielding securities during the quarter. Non-PPP loan yields increased six basis points to 4.24%. The effect on net interest margin of accretion of purchase discounts on acquired loans in the first quarter of 2022 was an increase of 15 basis points, consistent with the prior quarter. The effect on net interest margin of interest and fees on PPP loans was an increase of five basis points in the first quarter of 2022 compared to an increase of ten basis points in the prior quarter. The cost of deposits remained at only six basis points for the first quarter of 2022. The margin benefited from the Company’s asset sensitivity, combined with disciplined growth across the balance sheet.
•Noninterest income totaled $15.4 million in the first quarter of 2022, a decrease of $3.3 million, or 18%, compared to the prior quarter, and a decrease of $2.3 million, or 13%, compared to the prior year quarter. The decrease from the prior quarter primarily reflects a decrease of $3.4 million in income on SBIC investments, which is expected to vary amongst periods. In addition, the sale of a website domain name resulted in a gain of $0.8 million, benefiting results in the fourth quarter of 2021. Results for the first quarter of 2022 included the following:
•Wealth management income was $2.7 million in the first quarter of 2022, an increase of $0.3 million compared to the prior quarter, reflecting continued success in winning new relationships.
•Mortgage banking fees were $1.7 million, compared to $2.0 million in the prior quarter, the result of lower saleable production due to low housing inventory and slowing refinance demand.
•Other income decreased by $3.4 million in the first quarter of 2022, reflecting lower income on SBIC investments and a gain in the fourth quarter of 2021 on the sale of a website domain name, partially offset by higher loan-swap related income.
•The Company recognized $0.5 million in securities losses in the first quarter of 2022 compared to $0.4 million in the fourth quarter of 2021.
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.    
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•The provision for credit losses was $6.6 million in the first quarter of 2022, compared to a net benefit of $3.9 million in the prior quarter. The increase during the quarter included $5.1 million in provisioning for loans acquired in the Sabal Palm and BBFC transactions.
•Noninterest expense was $58.9 million in the first quarter of 2022, an increase of $8.7 million, or 17%, compared to the prior quarter, and an increase of $12.8 million, or 28%, compared to the prior year quarter. The first quarter of 2022 included $6.7 million in merger-related expenses. Changes from the fourth quarter of 2021 included the following:
•Salaries and wages increased $3.2 million to $28.2 million, which included $3.0 million in merger-related expenses associated with the BBFC and Sabal Palm acquisitions.
•Employee benefits increased by $0.7 million to $5.5 million, reflecting higher seasonal payroll taxes and 401(k) contributions.
•Outsourced data processing costs increased by $1.0 million to $6.2 million, which included $0.6 million in merger-related expenses and costs associated with the launch of the Company’s upgraded online and mobile banking platform, which was completed during the first quarter of 2022.
•Legal and professional fees increased by $2.3 million to $4.8 million, which included $2.5 million in merger-related expenses, compared to $0.4 million in the fourth quarter of 2021.
•Seacoast recorded $5.8 million of income tax expense in the first quarter of 2022, compared to $8.3 million in the prior quarter and $10.2 million in the first quarter of 2021. Changes to the Florida corporate income tax rate resulted in benefits of $1.5 million in the fourth quarter of 2021. Tax benefits related to stock-based compensation totaled $0.5 million in the first quarter of 2022, $0.6 million in the fourth quarter of 2021, and were nominal in the first quarter of 2021.
•The ratio of net adjusted noninterest expense1 to average tangible assets was 1.99% in the first quarter of 2022, compared to 1.96% in the prior quarter and 2.16% in the first quarter of 2021.
•The efficiency ratio was 62.33% in the first quarter of 2022, compared to 53.70% in the prior quarter and 53.21% in the prior year quarter. The increase in the first quarter of 2022 primarily reflects the impact of merger-related expenses. The adjusted efficiency ratio1 was 54.86% in the first quarter of 2022, compared to 53.43% in the prior quarter and 51.99% in the prior year quarter.

Balance Sheet
•At March 31, 2022, the Company had total assets of $10.9 billion and total shareholders' equity of $1.4 billion. Book value per share was $22.15 on March 31, 2022, compared to $22.40 on December 31, 2021, and $20.89 on March 31, 2021. Tangible book value per share totaled $17.12 on March 31, 2022 compared to $17.84 on December 31, 2021 and $16.62 on March 31, 2021. A decline in the value of the available for sale securities portfolio driven by rising interest rates during the period impacted tangible book value per share by $1.07.
•Debt securities totaled $2.5 billion on March 31, 2022, an increase of $170.7 million, or 7%, compared to December 31, 2021. Purchases during the first quarter of 2022 totaled $379.3 million, consisting primarily of agency-issued securities. The Company continues to take a prudent and disciplined approach to reinvesting liquidity.
•Loans totaled $6.5 billion on March 31, 2022, an increase of $526.2 million, or 9%, compared to December 31, 2021. Changes during the first quarter of 2022 include $367.9 million added through bank acquisitions, and the purchase of a $111.3 million residential loan pool. Removing the impact of loans added through acquisitions, the purchased pool during the quarter and PPP loans, loans outstanding grew 7% 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 $678.7 million in the first quarter of 2022, an increase of 13% compared to $599.9 million in the fourth quarter of 2021.
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.    
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•Commercial originations were $373.0 million during the first quarter of 2022, compared to $408.9 million in the fourth quarter of 2021, and $204.3 million in the first quarter of 2021. Despite a seasonally slower quarter, commercial originations remained strong and pipelines continued to build during the quarter.
•Consumer originations in the first quarter of 2022 increased to $79.0 million from $72.6 million in the fourth quarter of 2021 and from $46.7 million in the first quarter of 2021.
•Residential loans originated for sale in the secondary market totaled $51.2 million in the first quarter of 2022, compared to $69.2 million in the fourth quarter of 2021 and $138.3 million in the first quarter of 2021. Limited housing inventory and slowing refinance activity contributed to lower production.
•Closed residential loans retained in the portfolio totaled $175.5 million in the first quarter of 2022, compared to $49.1 million in the fourth quarter of 2021, and $46.6 million in the first quarter of 2021. The first quarter of 2022 included the purchase of a $111.3 million high-quality wholesale residential home mortgage loan pool from a seller well known to Seacoast.
•Pipelines (loans in underwriting and approval or approved and not yet closed) totaled $794.9 million on March 31, 2022, an increase of 64% from December 31, 2021 and an increase of 83% from March 31, 2021.
•Commercial pipelines were $619.5 million as of March 31, 2022, an increase of 56% from $397.8 million at December 31, 2021, and an increase of 157% from $240.9 million at March 31, 2021. The increase in pipeline reflects the addition of well-established commercial bankers and expansion into new markets across the state. The addition of experienced commercial bankers over the last 12 months is generating disciplined growth in full relationships, including credit facilities, deposit relationships, and wealth opportunities.
•Consumer pipelines were $61.6 million as of March 31, 2022, compared to $29.7 million at December 31, 2021, and $28.1 million at March 31, 2021. The increase is primarily the result of consumer lending teams that joined in late 2021.
•Residential saleable pipelines were $25.7 million as of March 31, 2022, compared to $30.1 million at December 31, 2021, and $92.1 million at March 31, 2021. Retained residential pipelines were $88.0 million as of March 31, 2022, compared to $25.6 million at December 31, 2021, and $72.4 million at March 31, 2021.
•Total deposits were $9.2 billion as of March 31, 2022, an increase of $1.2 billion, or 15%, compared to December 31, 2021, and an increase of $1.9 billion, or 25%, compared to March 31, 2021.
•The acquisitions of BBFC and Sabal Palm resulted in additions of $562.3 million in total deposits during the first quarter of 2022. Removing the impact of acquisitions and wholesale activity, deposits increased 25% on an annualized basis.
•Transaction account balances, excluding those acquired from BBFC and Sabal Palm, increased $498 million, or 10%, quarter-over-quarter, and at March 31, 2022, total transaction account balances represent 62% of overall deposit funding.
•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 March 31, 2022, the Company had sold, on an overnight basis, $231 million in deposits compared to $228 million at December 31, 2021, and $99 million at March 31, 2021. These deposits are not included in the consolidated balance sheet.
•The overall cost of deposits remained flat quarter over quarter at six basis points.
•As of March 31, 2022, deposits per banking center were $163.4 million, compared to $153.6 million at December 31, 2021.


1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.    
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Asset Quality
•Credit metrics remain strong with charge-offs, nonaccruals, and criticized assets at historically low levels.
•Nonperforming loans decreased by $4.4 million to $26.2 million at March 31, 2022. Nonperforming loans to total loans outstanding were 0.41% at March 31, 2022, 0.52% at December 31, 2021, and 0.62% at March 31, 2021.
•Nonperforming assets to total assets were 0.35% at March 31, 2022, 0.46% at December 31, 2021, and 0.58% at March 31, 2021.
•The ratio of allowance for credit losses to total loans was 1.39% at March 31, 2022, 1.41% at December 31, 2021, and 1.53% at March 31, 2021. Excluding PPP loans, the ratio of allowance for credit losses to total loans at March 31, 2022 was 1.40%, compared to 1.43% at December 31, 2021 and 1.71% at March 31, 2021.
•Net charge-offs were $0.1 million, or less than 0.01%, for the first quarter of 2022 compared to $0.6 million, or 0.04%, of average loans in the fourth quarter of 2021 and $0.4 million, or 0.03%, of average loans in the first quarter of 2021. Net charge-offs for the four most recent quarters averaged 0.05%.
•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 $524,000, 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 22% and 189% of total bank-level risk-based capital, respectively, compared to 21% and 177% respectively, at December 31, 2021. On a consolidated basis, construction and land development and commercial real estate loans represent 20% and 172%, respectively, of total consolidated risk-based capital.
Capital and Liquidity
•The Company continues to operate with a fortress balance sheet, with a tier 1 capital ratio at March 31, 2022, of 16.8% compared to 17.4% at December 31, 2021, and 18.1% at March 31, 2021. The total capital ratio was 17.7% and the tier 1 leverage ratio was 11.7% at March 31, 2022.
•Cash and cash equivalents at March 31, 2022 totaled $1.2 billion, an increase of $484.8 million, or 66%, from December 31, 2021, reflecting the impact of deposit growth in the first quarter of 2022 and of strategic liquidity management activities.
•Tangible common equity to tangible assets was 9.89% at March 31, 2022, compared to 11.09% at December 31, 2021, and 10.71% at March 31, 2021. Declines in the value of available for sale securities due to rising interest rates in the first quarter of 2022 negatively impacted equity by $66.0 million.

•At March 31, 2022, the Company had available unsecured lines of credit of $165.0 million and lines of credit under lendable collateral value of $2.3 billion. Additionally, $2.0 billion of debt securities and $684.3 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.    
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FINANCIAL HIGHLIGHTS
(Amounts in thousands except per share data)(Unaudited)
Quarterly Trends
1Q'224Q'213Q'212Q'211Q'21
Selected Balance Sheet Data:
Total Assets$10,904,817 $9,681,433 $9,893,498 $9,316,833 $8,811,820 
Gross Loans6,451,217 5,925,029 5,905,884 5,437,049 5,661,492 
Total Deposits9,243,768 8,067,589 8,334,172 7,836,436 7,385,749 
Performance Measures:
Net Income$20,588 $36,330 $22,944 $31,410 $33,719 
Net Interest Margin3.25 %3.16 %3.22 %3.23 %3.51 %
Average Diluted Shares Outstanding61,704 59,016 57,645 55,901 55,992 
Diluted Earnings Per Share (EPS)$0.33 $0.62 $0.40 $0.56 $0.60 
Return on (annualized):
Average Assets (ROA)0.79 %1.43 %0.93 %1.40 %1.61 %
Average Tangible Assets (ROTA)2
0.85 1.51 1.00 1.48 1.70 
Average Tangible Common Equity (ROTCE)2
8.02 14.29 9.56 13.88 15.62 
Tangible Common Equity to Tangible Assets2
9.89 11.09 10.62 10.43 10.71 
Tangible Book Value Per Share2
$17.12 $17.84 $17.52 $17.08 $16.62 
Efficiency Ratio62.33 %53.70 %59.55 %54.93 %53.21 %
Adjusted Operating Measures1:
Adjusted Net Income$27,056 $36,854 $29,350 $33,251 $35,497 
Adjusted Diluted EPS0.44 0.62 0.51 0.59 0.63 
Adjusted ROTA2
1.06 %1.49 %1.23 %1.52 %1.75 %
Adjusted ROTCE2
10.01 14.11 11.72 14.27 16.01 
Adjusted Efficiency Ratio54.86 53.43 51.50 53.49 51.99 
Net Adjusted Noninterest Expense as a
Percent of Average Tangible Assets2
1.99 1.96 1.95 1.98 2.16 
Other Data:
Market capitalization3
$2,144,586 $2,070,465 $1,972,784 $1,893,141 $2,003,866 
Full-time equivalent employees1,066 989 995 946 953 
Number of ATMs79 75 72 75 75 
Full-service banking offices58 54 52 48 48 
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.


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First Quarter 2022 Strategic Highlights
Capitalizing on Seacoast’s Commitment to Digital Transformation
•Seacoast successfully launched an upgraded online and mobile banking platform in February 2022 that unifies the user experience, offering new functionality and consistent features across all devices. New features include Zelle®, account aggregation, reporting tools and more. The enhanced digital banking experience for both consumers and businesses complements exceptional branch, ATM, and telephone banking services to deliver a competitive value proposition.

Driving Sustainable Growth and Expanding our Footprint
•Seacoast’s balanced growth strategy includes organic growth initiatives across the state. Seacoast expanded its footprint in Naples/Southwest Florida and Jacksonville/Northeast Florida with key additions to its commercial banking leadership and teams. In the first quarter of 2022, Seacoast added 14 experienced bankers in the state’s most dynamic and fastest growing markets and expects to continue to invest in well-established seasoned bankers over the remainder of the year.
•With a focus on leading sustainable growth while maintaining Seacoast’s commitment to disciplined underwriting standards, James Stallings joined Seacoast as executive vice president and chief credit officer. Stallings’ career includes over two decades with BB&T where, as a senior credit executive, he oversaw a large team of credit officers and a $60 billion portfolio. In addition, he has held a diverse set of roles, including overseeing credit for the commercial community bank, corporate C&I, and specialty finance.

Scaling and Evolving Our Culture
•A strong history of value-creating acquisitions continues to benefit shareholders and provide new opportunities for associates. The Seacoast team grew during the first quarter of 2022 with the addition of experienced bankers and the merging of the teams from Sabal Palm Bank and Florida Business Bank. The combined scale and talent further supports our sustainable, profitable growth.
•Seacoast was recognized by the Human Rights Foundation for earning a perfect score of 100 for workplace equality on the 2022 Corporate Equality Index. This is the third consecutive year Seacoast has earned such recognition for its employment practices.



    
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OTHER INFORMATION
Conference Call Information
Seacoast will host a conference call on April 29, 2022 at 10:00 a.m. (Eastern Time) to discuss the first quarter 2022 earnings results and business trends. Investors may call in (toll-free) by dialing (866) 374-5140 (passcode: 9139 5012; 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 April 29, 2022, and can be accessed via a link at www.SeacoastBanking.com under the heading “Corporate Information,” using the passcode EV00133935.

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 April 29, 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 $10.9 billion in assets and $9.2 billion in deposits as of March 31, 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.


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, or expects to acquire, including Apollo Bancshares, Inc., 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; 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



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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; 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 proposed Apollo Bancshares, Inc. merger include, without limitation, failure to obtain the approval of shareholders of Apollo Bancshares, Inc. and Apollo Bank in connection with the merger; the timing to consummate the proposed merger; the risk that a condition to the closing of the proposed merger may not be satisfied; the risk that a regulatory approval that may be required for the proposed merger is not obtained or is obtained subject to conditions that are not anticipated; the parties' ability to achieve the synergies and value creation contemplated by the proposed merger; the parties' ability to promptly and effectively integrate the businesses of Seacoast and Apollo Bancshares, Inc., including unexpected transaction costs, the costs of integrating operations, severance, professional fees and other expenses; the diversion of management time on issues related to the merger; the failure to consummate or any delay in consummating the merger for other reasons; changes in laws or regulations; the risks of customer and employee loss and business disruption, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures and solicitations of customers and employees by competitors; and the difficulties and risks inherent with entering new markets.




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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 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
(Amounts in thousands, except ratios and per share data)1Q'224Q'213Q'212Q'211Q'21
Summary of Earnings
Net income$20,588 $36,330 $22,944 $31,410 $33,719 
Adjusted net income1
27,056 36,854 29,350 33,251 35,497 
Net interest income2
76,639 72,412 71,455 65,933 66,741 
Net interest margin2,3
3.25 %3.16 %3.22 %3.23 %3.51 %
Performance Ratios
Return on average assets-GAAP basis3
0.79 %1.43 %0.93 %1.40 %1.61 %
Return on average tangible assets-GAAP basis3,4
0.85 1.51 1.00 1.48 1.70 
Adjusted return on average tangible assets1,3,4
1.06 1.49 1.23 1.52 1.75 
Net adjusted noninterest expense to average tangible assets1,3,4
1.99 1.96 1.95 1.98 2.16 
Return on average shareholders' equity-GAAP basis3
5.96 11.06 7.29 10.76 12.03 
Return on average tangible common equity-GAAP basis3,4
8.02 14.29 9.56 13.88 15.62 
Adjusted return on average tangible common equity1,3,4
10.01 14.11 11.72 14.27 16.01 
Efficiency ratio5
62.33 53.70 59.55 54.93 53.21 
Adjusted efficiency ratio1
54.86 53.43 51.50 53.49 51.99 
Noninterest income to total revenue (excluding securities gains/losses)17.14 20.89 21.09 18.94 21.07 
Tangible common equity to tangible assets4
9.89 11.09 10.62 10.43 10.71 
Average loan-to-deposit ratio71.25 70.29 69.97 74.13 81.39 
End of period loan-to-deposit ratio70.01 73.84 71.46 69.93 77.48 
Per Share Data
Net income diluted-GAAP basis$0.33 $0.62 $0.40 $0.56 $0.60 
Net income basic-GAAP basis0.34 0.62 0.40 0.57 0.61 
Adjusted earnings1
0.44 0.62 0.51 0.59 0.63 
Book value per share common22.15 22.40 22.12 21.33 20.89 
Tangible book value per share17.12 17.84 17.52 17.08 16.62 
Cash dividends declared0.13 0.13 0.13 0.13 — 
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
(Amounts in thousands, except per share data)1Q'224Q'213Q'212Q'211Q'21
Interest on securities:
Taxable$10,041 $8,574 $7,775 $6,559 $6,298 
Nontaxable140 139 143 147 148 
Fees on PPP loans1,373 3,011 5,218 3,877 5,390 
Interest on PPP loans150 341 699 1,251 1,496 
Interest and fees on loans - excluding PPP loans65,595 61,049 58,507 55,220 55,412 
Interest on federal funds sold and other investments933 828 867 709 586 
Total Interest Income78,232 73,942 73,209 67,763 69,330 
Interest on deposits767 711 849 980 1,065 
Interest on time certificates468 494 583 524 1,187 
Interest on borrowed money475 448 453 457 468 
Total Interest Expense1,710 1,653 1,885 1,961 2,720 
Net Interest Income76,522 72,289 71,324 65,802 66,610 
Provision for credit losses6,556 (3,942)5,091 (4,855)(5,715)
Net Interest Income After Provision for Credit Losses69,966 76,231 66,233 70,657 72,325 
Noninterest income:
Service charges on deposit accounts2,801 2,606 2,495 2,338 2,338 
Interchange income4,128 4,135 4,131 4,145 3,820 
Wealth management income2,659 2,356 2,562 2,387 2,323 
Mortgage banking fees1,686 2,030 2,550 2,977 4,225 
Marine finance fees191 147 152 177 189 
SBA gains156 200 812 232 287 
BOLI income1,334 1,295 1,128 872 859 
Other2,870 6,316 5,228 2,249 3,744 
15,825 19,085 19,058 15,377 17,785 
Securities losses, net(452)(379)(30)(55)(114)
Total Noninterest Income15,373 18,706 19,028 15,322 17,671 
Noninterest expenses:
Salaries and wages28,219 25,005 27,919 22,966 21,393 
Employee benefits5,501 4,763 4,177 3,953 4,980 
Outsourced data processing costs6,156 5,165 5,610 4,676 4,468 
Telephone / data lines733 790 810 838 785 
Occupancy3,986 3,500 3,541 3,310 3,789 
Furniture and equipment1,426 1,403 1,567 1,166 1,254 
Marketing1,171 1,060 1,353 1,002 1,168 
Legal and professional fees4,789 2,461 4,151 2,182 2,582 
FDIC assessments789 713 651 515 526 
Amortization of intangibles1,446 1,304 1,306 1,212 1,211 
Foreclosed property expense and net (gain) loss on sale(164)(175)66 (90)(65)
Provision for credit losses on unfunded commitments142 — 133 — — 
Other4,723 4,274 3,984 4,054 4,029 
Total Noninterest Expense58,917 50,263 55,268 45,784 46,120 
Income Before Income Taxes26,422 44,674 29,993 40,195 43,876 
Income taxes5,834 8,344 7,049 8,785 10,157 
Net Income$20,588 $36,330 $22,944 $31,410 $33,719 
Per share of common stock:
Net income diluted$0.33 $0.62 $0.40 $0.56 $0.60 
Net income basic0.34 0.62 0.40 0.57 0.61 
Cash dividends declared0.13 0.13 0.13 0.13 — 
Average diluted shares outstanding61,704 59,016 57,645 55,901 55,992 
Average basic shares outstanding61,127 58,462 57,148 55,421 55,271 


CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
March 31,December 31,September 30,June 30,March 31,
(Amounts in thousands)20222021202120212021
Assets
Cash and due from banks$351,128 $238,750 $199,460 $97,468 $89,123 
Interest bearing deposits with other banks871,387 498,979 1,028,235 1,351,377 890,202 
Total Cash and Cash Equivalents1,222,515 737,729 1,227,695 1,448,845 979,325 
Time deposits with other banks5,975 — 750 750 750 
Debt Securities:
Available for sale (at fair value)1,706,619 1,644,319 1,546,155 1,322,776 1,051,396 
Held to maturity (at amortized cost)747,004 638,640 526,502 493,467 512,307 
Total Debt Securities2,453,623 2,282,959 2,072,657 1,816,243 1,563,703 
Loans held for sale20,615 31,791 49,597 42,793 60,924 
Loans6,451,217 5,925,029 5,905,884 5,437,049 5,661,492 
Less: Allowance for credit losses(89,838)(83,315)(87,823)(81,127)(86,643)
Net Loans6,361,379 5,841,714 5,818,061 5,355,922 5,574,849 
Bank premises and equipment, net74,617 72,404 71,250 69,392 70,385 
Other real estate owned11,567 13,618 13,628 12,804 15,549 
Goodwill286,606 252,154 252,154 221,176 221,176 
Other intangible assets, net21,549 14,845 16,153 14,106 15,382 
Bank owned life insurance206,375 205,041 193,747 158,506 132,634 
Net deferred tax assets47,222 27,321 24,187 21,839 24,497 
Other assets192,774 201,857 153,619 154,457 152,646 
Total Assets$10,904,817 $9,681,433 $9,893,498 $9,316,833 $8,811,820 
Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest demand$3,522,700 $3,075,534 $3,086,466 $2,952,160 $2,685,247 
Interest-bearing demand2,253,562 1,890,212 1,845,165 1,763,884 1,647,935 
Savings937,839 895,019 834,309 811,516 768,362 
Money market1,999,027 1,651,881 1,951,639 1,807,190 1,671,179 
Other time certificates397,491 404,601 437,973 335,370 373,297 
Brokered time certificates— — 20,000 20,000 93,500 
Time certificates of more than $250,000133,149 150,342 158,620 146,316 146,229 
Total Deposits9,243,768 8,067,589 8,334,172 7,836,436 7,385,749 
Securities sold under agreements to repurchase120,922 121,565 105,548 119,973 109,171 
Subordinated debt71,716 71,646 71,576 71,506 71,436 
Other liabilities112,126 109,897 91,682 106,571 90,115 
Total Liabilities9,548,532 8,370,697 8,602,978 8,134,486 7,656,471 
Shareholders' Equity
Common stock6,124 5,850 5,835 5,544 5,529 
Additional paid in capital1,062,462 963,851 959,644 862,598 858,688 
Retained earnings371,192 358,598 329,918 314,584 290,420 
Treasury stock(10,459)(10,569)(10,146)(10,180)(8,693)
1,429,319 1,317,730 1,285,251 1,172,546 1,145,944 
Accumulated other comprehensive income, net(73,034)(6,994)5,269 9,801 9,405 
Total Shareholders' Equity1,356,285 1,310,736 1,290,520 1,182,347 1,155,349 
Total Liabilities & Shareholders' Equity$10,904,817 $9,681,433 $9,893,498 $9,316,833 $8,811,820 
Common shares outstanding61,239 58,504 58,349 55,436 55,294 



CONSOLIDATED QUARTERLY FINANCIAL DATA(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
(Amounts in thousands)1Q'224Q'213Q'212Q'211Q'21
Credit Analysis
Net charge-offs - non-acquired loans$72 $541 $198 $214 $292 
Net charge-offs - acquired loans7 29 1,234 441 78 
Total Net Charge-offs 79 570 1,432 655 370 
Net charge-offs to average loans - non-acquired loans— %0.04 %0.01 %0.02 %0.02 %
Net charge-offs to average loans - acquired loans— — 0.09 0.03 0.01 
Total Net Charge-offs to Average Loans— 0.04 0.10 0.05 0.03 
Allowance for credit losses - non-acquired loans$67,261 $64,710 $64,740 $64,525 $66,523 
Allowance for credit losses - acquired loans22,577 18,605 23,083 16,602 20,120 
Total Allowance for Credit Losses$89,838 $83,315 $87,823 $81,127 $86,643 
Non-acquired loans at end of period$5,169,973 $4,860,171 $4,608,801 $4,290,622 $4,208,911 
Acquired loans at end of period1,241,988 973,751 1,106,481 782,315 870,928 
Paycheck Protection Program loans at end of period39,256 91,107 190,602 364,112 581,653 
Total Loans$6,451,217 $5,925,029 $5,905,884 $5,437,049 $5,661,492 
Non-acquired loans allowance for credit losses to non-acquired loans at end of period1.30 %1.33 %1.40 %1.50 %1.58 %
Total allowance for credit losses to total loans at end of period1.39 1.41 1.49 1.49 1.53 
Total allowance for credit losses to total loans, excluding PPP loans1.40 1.43 1.54 1.60 1.71 
Purchase discount on acquired loans at end of period1.89 2.27 2.27 2.98 2.93 
End of Period
Nonperforming loans$26,209 $30,598 $32,612 $32,920 $35,328 
Other real estate owned9,256 12,223 11,843 11,019 10,836 
Properties previously used in bank operations included in other real estate owned2,310 1,395 1,785 1,785 4,713 
Total Nonperforming Assets$37,775 $44,216 $46,240 $45,724 $50,877 
Accruing troubled debt restructures (TDRs)$4,454 $3,917 $4,047 $4,037 $4,067 
Nonperforming Loans to Loans at End of Period0.41 %0.52 %0.55 %0.61 %0.62 %
Nonperforming Assets to Total Assets at End of Period0.35 0.46 0.47 0.49 0.58 
March 31,December 31,September 30,June 30,March 31,
Loans20222021202120212021
Construction and land development$259,421 $230,824 $227,459 $234,347 $227,117 
Commercial real estate - owner occupied1,284,515 1,197,774 1,201,336 1,127,640 1,133,085 
Commercial real estate - non-owner occupied1,966,150 1,736,439 1,673,587 1,412,439 1,438,365 
Residential real estate1,599,645 1,425,354 1,467,329 1,226,536 1,246,549 
Commercial and financial1,132,506 1,069,356 982,552 900,206 860,813 
Consumer169,724 174,175 163,019 171,769 173,910 
Paycheck Protection Program39,256 91,107 190,602 364,112 581,653 
Total Loans$6,451,217 $5,925,029 $5,905,884 $5,437,049 $5,661,492 



AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1
(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
1Q'224Q'211Q'21
AverageYield/AverageYield/AverageYield/
(Amounts in thousands)BalanceInterestRateBalanceInterestRateBalanceInterestRate
Assets
Earning assets:
Securities:
Taxable$2,406,399 $10,041 1.67 %$2,198,517 $8,574 1.56 %$1,550,457 $6,298 1.62 %
Nontaxable24,042 177 2.94 24,664 176 2.85 25,932 187 2.89 
Total Securities2,430,441 10,218 1.68 2,223,181 8,750 1.57 1,576,389 6,485 1.65 
Federal funds sold738,588 350 0.19 878,875 337 0.15 293,506 74 0.10 
Other investments44,999 583 5.25 34,992 491 5.57 83,838 512 2.48 
Loans excluding PPP loans6,276,964 65,675 4.24 5,804,149 61,135 4.18 5,149,642 55,504 4.37 
PPP loans61,923 1,523 9.98 136,942 3,352 9.71 609,733 6,886 4.58 
Total Loans6,338,887 67,198 4.30 5,941,091 64,487 4.31 5,759,375 62,390 4.39 
Total Earning Assets9,552,915 78,349 3.33 9,078,139 74,065 3.24 7,713,108 69,461 3.65 
Allowance for credit losses(87,467)(88,484)(91,735)
Cash and due from banks365,835 359,287 255,685 
Premises and equipment75,876 72,148 74,272 
Intangible assets304,321 267,692 237,323 
Bank owned life insurance205,500 195,169 132,079 
Other assets211,536 177,431 164,622 
Total Assets$10,628,516 $10,061,382 $8,485,354 
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand$2,097,383 $190 0.04 %$1,960,083 $183 0.04 %$1,600,490 $258 0.07 %
Savings925,348 65 0.03 866,257 63 0.03 722,274 137 0.08 
Money market1,976,660 512 0.11 1,851,275 465 0.10 1,609,938 670 0.17 
Time deposits560,681 468 0.34 595,230 494 0.33 711,320 1,187 0.68 
Securities sold under agreements to repurchase118,146 39 0.13 106,691 30 0.11 112,834 41 0.15 
Other borrowings71,670 436 2.47 71,600 418 2.32 71,390 427 2.43 
Total Interest-Bearing Liabilities5,749,888 1,710 0.12 5,451,136 1,653 0.12 4,828,246 2,720 0.23 
Noninterest demand3,336,121 3,179,798 2,432,038 
Other liabilities141,972 126,762 88,654 
Total Liabilities9,227,981 8,757,696 7,348,938 
Shareholders' equity1,400,535 1,303,686 1,136,416 
Total Liabilities & Equity$10,628,516 $10,061,382 $8,485,354 
Cost of deposits0.06 %0.06 %0.13 %
Interest expense as a % of earning assets0.07 %0.07 %0.14 %
Net interest income as a % of earning assets$76,639 3.25 %$72,412 3.16 %$66,741 3.51 %
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
March 31,December 31,September 30,June 30,March 31,
(Amounts in thousands)20222021202120212021
Customer Relationship Funding
Noninterest demand
Commercial$2,939,595 $2,477,111 $2,535,922 $2,431,928 $2,189,564 
Retail458,809 458,626 416,779 401,988 379,257 
Public funds86,419 107,523 84,337 88,057 83,315 
Other37,877 32,274 49,428 30,187 33,111 
Total Noninterest Demand3,522,700 3,075,534 3,086,466 2,952,160 2,685,247 
Interest-bearing demand
Commercial610,109 497,466 554,366 545,797 497,047 
Retail1,392,490 1,144,635 1,069,668 958,619 895,853 
Public funds250,963 248,111 221,131 259,468 255,035 
Total Interest-Bearing Demand2,253,562 1,890,212 1,845,165 1,763,884 1,647,935 
Total transaction accounts
Commercial3,549,704 2,974,577 3,090,288 2,977,725 2,686,611 
Retail1,851,299 1,603,261 1,486,447 1,360,607 1,275,110 
Public funds337,382 355,634 305,468 347,525 338,350 
Other37,877 32,274 49,428 30,187 33,111 
Total Transaction Accounts5,776,262 4,965,746 4,931,631 4,716,044 4,333,182 
Savings937,839 895,019 834,309 811,516 768,362 
Money market
Commercial856,117 732,639 827,901 787,894 692,537 
Retail931,702 840,054 834,628 737,554 701,453 
Brokered126,168 8,007 196,548 187,023 197,389 
Public funds85,040 71,181 92,562 94,719 79,800 
Total Money Market1,999,027 1,651,881 1,951,639 1,807,190 1,671,179 
Brokered time certificates— — 20,000 20,000 93,500 
Other time certificates530,640 554,943 596,593 481,686 519,526 
530,640 554,943 616,593 501,686 613,026 
Total Deposits$9,243,768 $8,067,589 $8,334,172 $7,836,436 $7,385,749 
Customer sweep accounts$120,922 $121,565 $105,548 $119,973 $109,171 





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



GAAP TO NON-GAAP RECONCILIATION(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Quarterly Trends
(Amounts in thousands, except per share data)1Q'224Q'213Q'212Q'211Q'21
Net Income$20,588 $36,330 $22,944 $31,410 $33,719 
Total noninterest income15,373 18,706 19,028 15,322 17,671 
Securities losses (gains), net452 379 30 55 114 
Gain on sale of domain name (included in other income)— (755)— — — 
Total Adjustments to Noninterest Income452 (376)30 55 114 
Total Adjusted Noninterest Income15,825 18,330 19,058 15,377 17,785 
Total noninterest expense58,917 50,263 55,268 45,784 46,120 
Merger related charges(6,692)(482)(6,281)(509)(581)
Amortization of intangibles(1,446)(1,304)(1,306)(1,212)(1,211)
Branch reductions and other expense initiatives(74)(168)(870)(663)(449)
Total Adjustments to Noninterest Expense(8,212)(1,954)(8,457)(2,384)(2,241)
Total Adjusted Noninterest Expense50,705 48,309 46,811 43,400 43,879 
Income Taxes5,834 8,344 7,049 8,785 10,157 
Tax effect of adjustments 2,196 280 2,081 598 577 
Effect of change in corporate tax rate on deferred tax assets— 774 — — — 
Total Adjustments to Income Taxes2,196 1,054 2,081 598 577 
Adjusted Income Taxes8,030 9,398 9,130 9,383 10,734 
Adjusted Net Income$27,056 $36,854 $29,350 $33,251 $35,497 
Earnings per diluted share, as reported$0.33 $0.62 $0.40 $0.56 $0.60 
Adjusted Earnings per Diluted Share 0.44 0.62 0.51 0.59 0.63 
Average diluted shares outstanding 61,704 59,016 57,645 55,901 55,992 
Adjusted Noninterest Expense$50,705 $48,309 $46,811 $43,400 $43,879 
Provision for credit losses on unfunded commitments(142)— (133)— — 
Foreclosed property expense and net gain / (loss) on sale 164 175 (66)90 65 
Net Adjusted Noninterest Expense$50,727 $48,484 $46,612 $43,490 $43,944 
Revenue$91,895 $90,995 $90,352 $81,124 $84,281 
Total Adjustments to Revenue452 (376)30 55 114 
Impact of FTE adjustment117 123 131 131 131 
Adjusted Revenue on a fully taxable equivalent basis$92,464 $90,742 $90,513 $81,310 $84,526 
Adjusted Efficiency Ratio54.86 %53.43 %51.50 %53.49 %51.99 %
Net Interest Income$76,522 $72,289 $71,324 $65,802 $66,610 
Impact of FTE adjustment117 123 131 131 131 
Net Interest Income including FTE adjustment$76,639 $72,412 $71,455 $65,933 $66,741 
Total noninterest income15,373 18,706 19,028 15,322 17,671 
Total noninterest expense58,917 50,263 55,268 45,784 46,120 
Pre-Tax Pre-Provision Earnings$33,095 $40,855 $35,215 $35,471 $38,292 
Total Adjustments to Noninterest Income452 (376)30 55 114 
Total Adjustments to Noninterest Expense(8,190)(1,779)(8,656)(2,294)(2,176)
Adjusted Pre-Tax Pre-Provision Earnings$41,737 $42,258 $43,901 $37,820 $40,582 
Average Assets$10,628,516 $10,061,382 $9,753,734 $9,025,846 $8,485,354 
Less average goodwill and intangible assets(304,321)(267,692)(254,980)(235,964)(237,323)
Average Tangible Assets$10,324,195 $9,793,690 $9,498,754 $8,789,882 $8,248,031 
Return on Average Assets (ROA)0.79 %1.43 %0.93 %1.40 %1.61 %
Impact of removing average intangible assets and related amortization 0.06 0.08 0.07 0.08 0.09 
Return on Average Tangible Assets (ROTA)0.85 1.51 1.00 1.48 1.70 
Impact of other adjustments for Adjusted Net Income 0.21 (0.02)0.23 0.04 0.05 
Adjusted Return on Average Tangible Assets1.06 1.49 1.23 1.52 1.75 


GAAP TO NON-GAAP RECONCILIATION(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Quarterly Trends
(Amounts in thousands, except per share data)1Q'224Q'213Q'212Q'211Q'21
Average Shareholders' Equity$1,400,535 $1,303,686 $1,248,547 $1,170,395 $1,136,416 
Less average goodwill and intangible assets(304,321)(267,692)(254,980)(235,964)(237,323)
Average Tangible Equity$1,096,214 $1,035,994 $993,567 $934,431 $899,093 
Return on Average Shareholders' Equity 5.96 %11.06 %7.29 %10.76 %12.03 %
Impact of removing average intangible assets and related amortization 2.06 3.23 2.27 3.12 3.59 
Return on Average Tangible Common Equity (ROTCE)8.02 14.29 9.56 13.88 15.62 
Impact of other adjustments for Adjusted Net Income 1.99 (0.18)2.16 0.39 0.39 
Adjusted Return on Average Tangible Common Equity 10.01 14.11 11.72 14.27 16.01 
Loan interest income1
$67,198 $64,487 $64,517 $60,440 $62,390 
Accretion on acquired loans(3,717)(3,520)(3,483)(2,886)(2,868)
Interest and fees on PPP loans(1,523)(3,352)(5,917)(5,127)(6,886)
Loan interest income excluding PPP and accretion on acquired loans$61,958 $57,615 $55,117 $52,427 $52,636 
Yield on loans1
4.30 4.31 4.49 4.33 4.39 
Impact of accretion on acquired loans (0.24)(0.24)(0.24)(0.21)(0.20)
Impact of PPP loans(0.06)(0.13)(0.22)0.01 (0.04)
Yield on loans excluding PPP and accretion on acquired loans4.00 %3.94 %4.03 %4.13 %4.15 %
Net Interest Income1
$76,639 $72,412 $71,455 $65,933 $66,741 
Accretion on acquired loans(3,717)(3,520)(3,483)(2,886)(2,868)
Interest and fees on PPP loans(1,523)(3,352)(5,917)(5,127)(6,886)
Net interest income excluding PPP and accretion on acquired loans$71,399 $65,540 $62,055 $57,920 $56,987 
Net Interest Margin3.25 3.16 3.22 3.23 3.51 
Impact of accretion on acquired loans (0.15)(0.15)(0.15)(0.14)(0.15)
Impact of PPP loans(0.05)(0.10)(0.18)(0.06)(0.11)
Net interest margin excluding PPP and accretion on acquired loans3.05 %2.91 %2.89 %3.03 %3.25 %
Security interest income1
$10,218 $8,750 $7,956 $6,745 $6,485 
Tax equivalent adjustment on securities(37)(37)(38)(39)(39)
Security interest income excluding tax equivalent adjustment$10,181 $8,713 $7,918 $6,706 $6,446 
Loan interest income1
$67,198 $64,487 $64,517 $60,440 $62,390 
Tax equivalent adjustment on loans(80)(86)(93)(92)(92)
Loan interest income excluding tax equivalent adjustment$67,118 $64,401 $64,424 $60,348 $62,298 
Net Interest Income1
$76,639 $72,412 $71,455 $65,933 $66,741 
Tax equivalent adjustment on securities(37)(37)(38)(39)(39)
Tax equivalent adjustment on loans(80)(86)(93)(92)(92)
Net interest income excluding tax equivalent adjustment$76,522 $72,289 $71,324 $65,802 $66,610 
1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.