EX-99.1 2 a2q2022earningsrelease.htm EX-99.1 2Q2022 Earnings Release
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SEACOAST REPORTS SECOND QUARTER 2022 RESULTS
Record Commercial Loan Originations, Strong Growth in Demand Deposits, and Significant Expansion in Net Interest Margin Highlight Q2 Results
Well-Positioned Balance Sheet with Strong Capital and Liquidity

STUART, Fla., July 28, 2022 /GLOBE NEWSWIRE/ -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the second quarter of 2022 of $32.8 million, or $0.53 per diluted share. Second quarter 2022 net income grew 59% compared to the first quarter of 2022, and increased 4% compared to the second quarter of 2021. Adjusted net income1 for the second quarter of 2022 was $36.3 million, or $0.59 per diluted share. Second quarter 2022 adjusted net income grew 34% compared to the first quarter of 2022, and increased 9% compared to the second quarter of 2021. At June 30, 2022, the ratio of tangible common equity to tangible assets was 9.74%, and tangible book value per share was $16.66. A decline in the value of the available for sale securities portfolio driven by rising interest rates during the first half of 2022 impacted the ratio of tangible common equity to tangible assets by 99 basis points and impacted tangible book value per share by $1.90 compared to December 31, 2021.
For the second quarter of 2022, return on average tangible assets was 1.29%, return on average tangible shareholders' equity was 13.01%, and the efficiency ratio was 56.22%, compared to 0.85%, 8.02%, and 62.33%, respectively, in the prior quarter, and 1.48%, 13.88%, and 54.93%, respectively, in the prior year quarter. Adjusted return on average tangible assets1 in the second quarter of 2022 was 1.38%, adjusted return on average tangible shareholders' equity1 was 13.97%, and the adjusted efficiency ratio1 was 53.15%, compared to 1.06%, 10.01%, and 54.86%, respectively, in the prior quarter, and 1.52%, 14.27%, and 53.49%, respectively, in the prior year quarter.
Charles M. Shaffer, Seacoast's Chairman and CEO, said, “Our quarterly results demonstrate the continued success of our balanced growth strategy, with steady, disciplined organic growth and financially attractive and well-integrated acquisitions combining to deliver strong returns for our shareholders. The quarter was highlighted by a significant increase in our net interest margin, strong loan originations, and continued growth in demand deposits. Adjusted pre-tax pre-provision earnings1 increased 11% over the prior quarter to $46.4 million, driving improvements in the overhead ratio, return on tangible assets, and return on tangible common equity.”
“I would like to thank the Seacoast team for their dedication and hard work, and I am very excited to continue our momentum as we build a statewide brand as Florida’s leading bank. As we enter the second half of 2022, we have already this year added new markets in Naples, Jacksonville, and Sarasota, and in the fourth quarter we will add Miami, Ocala, and Gainesville. This expansion into some of the best banking markets in the United States, in combination with a statewide highly competitive brand of banking, will generate disciplined growth and strong returns in the years to come,” Shaffer added.
Shaffer concluded, “We continue to operate the company with a solid balance sheet, fortified with a tangible common equity ratio of 9.74%. We see continued strong credit quality metrics, and the allowance for credit losses totals $90.8 million, with an additional $21.4 million in purchase discount on acquired loans. This provides meaningful loss absorption capacity, which when aggregated, represents 1.71% of loans outstanding. In addition, our balance sheet is supported by one of the best customer franchises in the industry and a strictly underwritten credit portfolio.”
Acquisitions Update
Seacoast’s balanced growth strategy, combining organic growth with value-creating acquisitions, continues to benefit shareholders and expand the franchise across Florida.
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 $367.9 million in loans and $562.3 million in deposits. Seacoast recorded a $5.1 million provision for credit losses on acquired loans at the acquisition date. Integration activities, including system conversion, are now complete.


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 pending acquisition of Apollo Bancshares, Inc. will add a premier, locally-focused franchise in the rapidly growing South Florida market. We expect this transaction to close and the system conversion to be complete by early October 2022. The addition of Drummond Banking Company will expand Seacoast’s footprint into the emerging Gainesville and Ocala markets with low-cost core deposits and diversified business lines. We expect this transaction to close in early October 2022, with the system conversion in the first quarter of 2023. Each acquisition provides the opportunity for Seacoast to leverage its proven integration capabilities to preserve and build on Apollo’s and Drummond’s strong customer-focused relationships. The two acquisitions are expected to add a combined $1.2 billion in loans and $1.9 billion in deposits in the fourth quarter of 2022.
Financial Results
Income Statement
•Net income was $32.8 million, or $0.53 per diluted share for the second quarter of 2022 compared to net income of $20.6 million, or $0.33, for the prior quarter, and $31.4 million, or $0.56, for the prior year quarter. For the six months ended June 30, 2022, net income was $53.3 million, or $0.86 per diluted share, compared to $65.1 million, or $1.17 per diluted share, for the six months ended June 30, 2021. Adjusted net income1 for the second quarter of 2022 was $36.3 million, or $0.59 per diluted share. This compares to $27.1 million, or $0.44, for the prior quarter, and $33.3 million, or $0.59 per diluted share, for the prior year quarter. Excluded from adjusted net income are $3.0 million in merger-related expenses in the second quarter of 2022, compared to $6.7 million in the first quarter of 2022 and $0.5 million in the second quarter of 2021. For the six months ended June 30, 2022, adjusted net income1 was $63.4 million, or $1.03 per diluted share, compared to $68.7 million, or $1.23 per diluted share, for the six months ended June 30, 2021.
•Net revenues were $98.6 million in the second quarter of 2022, an increase of $6.7 million, or 7%, compared to the prior quarter, and an increase of $17.5 million, or 22%, compared to the prior year quarter. For the six months ended June 30, 2022 net revenues were $190.5 million, an increase of $25.1 million, or 15%, compared to the six months ended June 30, 2021. Adjusted revenues1 were $98.9 million in the second quarter of 2022, an increase of $6.6 million, or 7%, compared to the prior quarter, and an increase of $17.7 million, or 22%, compared to the prior year quarter. For the six months ended June 30, 2022 adjusted revenues1 were $191.3 million, an increase of $25.7 million, or 16%, compared to the six months ended June 30, 2021.
•On an adjusted basis, pre-tax pre-provision earnings1 was $46.4 million, an increase of 11% compared to the first quarter of 2022 and an increase of 23% compared to the second quarter of 2021. The increase from the prior quarter was the result of higher net interest income driven by expanding margin, increasing noninterest income, and a reduction in noninterest expense.
•Net interest income totaled $81.6 million in the second quarter of 2022, an increase of $5.1 million, or 7%, from the first quarter of 2022, and an increase of $15.8 million, or 24%, compared to the second quarter of 2021. For the six months ended June 30, 2022, net interest income was $158.2 million, an increase of $25.8 million, or 19% compared to the six months ended June 30, 2021.
•Net interest margin increased to 3.38% in the second quarter of 2022 compared to 3.25% in the first quarter of 2022, the result of higher yields on securities and loans and a stable cost of deposits. Excluding the effect of PPP and accretion on acquired loans, net interest margin increased 19 basis points to 3.24% in the second quarter of 2022 from 3.05% in the first quarter of 2022. Securities yields increased 30 basis points to 1.98%, reflecting the impact of the addition of higher yielding securities during the quarter. Non-PPP loan yields increased three basis points to 4.27%. The effect on net interest margin of accretion of purchase discounts on acquired loans in the second quarter of 2022 was 12 basis points, a decrease of 3 basis points compared to the prior quarter. The effect on net interest margin of interest and fees on PPP loans was an increase of two basis points in the second quarter of 2022 compared to an increase of five basis points in the prior quarter. The cost of deposits remained only six basis points for the second quarter of 2022. The margin benefited from the Company’s asset sensitivity, disciplined growth across the balance sheet, and no increase in the cost of deposits from the prior quarter.
•Noninterest income totaled $17.0 million in the second quarter of 2022, an increase of $1.6 million, or 10%, compared to the prior quarter, and an increase of $1.6 million, or 11%, compared to the prior year quarter. For
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 six months ended June 30, 2022, noninterest income was $32.3 million, a decrease of $0.7 million, or 2%, compared to the six months ended June 30, 2021. Results for the second quarter of 2022 included the following:
•Service charges on deposits increased $0.6 million to $3.4 million, reflecting growth in commercial deposit relationships and service charge fee increases.
•Despite the impact of broad based declining equity market valuations, the wealth management group continues to win relationships, resulting in $2.8 million in fee income for the quarter, an increase of $0.1 million from the prior quarter.
•Mortgage banking fees were $0.9 million, compared to $1.7 million in the prior quarter, reflecting the continued impact of rising rates and limited housing inventory on saleable loan production.
•Gains on sale of SBA loans were $0.5 million, an increase of $0.3 million compared to the prior quarter, reflecting higher production during the quarter.
•Other income increased by $0.9 million in the second quarter of 2022 to $3.8 million and included the benefit of higher loan-swap related income.
•The Company recognized $0.3 million in securities losses in the second quarter of 2022, compared to $0.5 million in the first quarter of 2022 and $0.1 million in the second quarter of 2021.
•The provision for credit losses was $0.8 million in the second quarter of 2022, compared to $6.6 million in the prior quarter. The prior quarter included $5.1 million in provisioning for loans acquired in the Sabal Palm and BBFC transactions.
•Noninterest expense was $56.1 million in the second quarter of 2022, a decrease of $2.8 million, or 5%, compared to the prior quarter, and an increase of $10.4 million, or 23%, compared to the prior year quarter. Noninterest expense was $115.1 million for the six months ended June 30, 2022, compared to $91.9 million in the six months ended June 30, 2021. Changes from the first quarter of 2022 included the following:
•Salaries and wages decreased $0.2 million to $28.1 million in the second quarter of 2022. The second quarter of 2022 reflects higher compensation costs, with ongoing investments in commercial banking talent and production support roles, which were more than offset by a $2.4 million decline in merger-related expenses quarter over quarter.
•Employee benefits declined by $1.4 million to $4.2 million, reflecting seasonally higher payroll taxes and 401(k) contributions in the first quarter of 2022.
•Marketing expense increased $0.7 million to $1.9 million in the second quarter of 2022, the result of marketing campaigns primarily focused on our expansion markets.
•Legal and professional fees declined by $1.8 million to $2.9 million in the second quarter of 2022, reflecting lower merger-related expenses in the current quarter.
•Other expenses increased by $0.6 million, reflecting higher recruiting and production-related costs.
•Seacoast recorded $8.9 million of income tax expense in the second quarter of 2022, compared to $5.8 million in the prior quarter and $8.8 million in the second quarter of 2021. During the second quarter of 2022, the Company received a $1.0 million refund of Florida corporate income tax paid in prior periods. The State of Florida reported that, for the second year in a row, corporate income tax collections significantly exceeded projections, triggering an automatic refund of excess funds. Tax benefits related to stock-based compensation totaled $0.4 million in the second quarter of 2022, $0.5 million in the first quarter of 2022, and $0.6 million in the second quarter of 2021.
•The ratio of net adjusted noninterest expense1 to average tangible assets was 2.00% in the second quarter of 2022, compared to 1.99% in the prior quarter and 1.98% in the second quarter of 2021.
•The efficiency ratio was 56.22% in the second quarter of 2022, compared to 62.33% in the prior quarter and 54.93% in the prior year quarter. The adjusted efficiency ratio1 was 53.15% in the second quarter of 2022, compared to 54.86% in the prior quarter and 53.49% in the prior year quarter. The Company continues to remain keenly focused on disciplined expense control.
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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Balance Sheet
•At June 30, 2022, the Company had total assets of $10.8 billion and total shareholders' equity of $1.3 billion. Book value per share was $21.65 on June 30, 2022, compared to $22.15 on March 31, 2022, and $21.33 on June 30, 2021. Tangible book value per share totaled $16.66 on June 30, 2022 compared to $17.12 on March 31, 2022 and $17.08 on June 30, 2021. A continued decline in the value of the available for sale securities portfolio driven by rising interest rates impacted tangible book value per share by $1.90 when compared to December 31, 2021.
•Debt securities totaled $2.6 billion on June 30, 2022, an increase of $142.0 million, or 6%, compared to March 31, 2022. Purchases during the second quarter of 2022 totaled $300.8 million, consisting primarily of agency-issued securities at an average duration of 3.3 and average add on yield of 3.31%. The Company continues to take a prudent and disciplined approach to reinvesting excess liquidity.
•Loans totaled $6.5 billion on June 30, 2022, an increase of $90.3 million, or 1%, compared to March 31, 2022. Loans outstanding, excluding PPP, 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 $734.0 million in the second quarter of 2022, an increase of 8% compared to $678.7 million in the first quarter of 2022.
•Commercial originations were a record $461.9 million during the second quarter of 2022, compared to $373.0 million in the first quarter of 2022, and $193.0 million in the second quarter of 2021.
•Consumer originations in the second quarter of 2022 increased to $126.5 million from $79.0 million in the first quarter of 2022 and from $63.7 million in the second quarter of 2021. The increase is primarily the result of consumer lending teams that joined in late 2021.
•Residential loans originated for sale in the secondary market totaled $42.7 million in the second quarter of 2022, compared to $51.2 million in the first quarter of 2022 and $120.1 million in the second quarter of 2021. Limited housing inventory and slowing refinance activity contributed to lower production.
•Closed residential loans retained in the portfolio totaled $103.0 million in the second quarter of 2022, compared to $175.5 million in the first quarter of 2022, and $118.1 million in the second quarter of 2021. The first quarter of 2022 and the second quarter of 2021 included the purchases of $111.3 million and $38.4 million, respectively, of high-quality wholesale residential home mortgage loan pools from sellers well known to Seacoast.
•Pipelines (loans in underwriting and approval or approved and not yet closed) totaled $620.0 million on June 30, 2022, a decrease of 22% from March 31, 2022 and an increase of 32% from June 30, 2021.
•Commercial pipelines were $476.7 million as of June 30, 2022, a decrease of 23% from $619.5 million at March 31, 2022, and an increase of 48% from $322.0 million at June 30, 2021. The Company continues to add experienced commercial bankers across Florida focused on generating disciplined growth in full relationships, including credit facilities, deposit relationships, and wealth opportunities.
•Consumer pipelines were $75.5 million as of June 30, 2022, an increase of 23% from $61.6 million at March 31, 2022, and an increase of 138% from $31.7 million at June 30, 2021. The increase is primarily the result of consumer lending teams that joined in late 2021.
•Residential saleable pipelines were $14.7 million as of June 30, 2022, compared to $25.7 million at March 31, 2022, and $60.6 million at June 30, 2021. Retained residential pipelines were $53.1 million as of June 30, 2022, compared to $88.0 million at March 31, 2022, and $54.1 million at June 30, 2021.
•Total deposits were $9.2 billion as of June 30, 2022, a decrease of $54.8 million, or 1%, compared to March 31, 2022, and an increase of $1.4 billion, or 17%, compared to June 30, 2021.
•Transaction account balances increased $86 million, or 1%, quarter-over-quarter, and at June 30, 2022, total transaction account balances represent 64% of overall deposit funding. This continued growth in
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 relationships reflects the benefit of adding experienced, well-seasoned commercial bankers across the state of Florida.
•The overall cost of deposits remained at six basis points.
•As of June 30, 2022, deposits per banking center were $158.4 million, compared to $163.4 million at March 31, 2022, and $163.3 million at June 30, 2021.

Asset Quality
•Credit metrics remain strong with charge-offs, nonaccruals, and criticized assets at historically low levels.
•Nonperforming loans increased by $0.2 million to $26.4 million at June 30, 2022. Nonperforming loans to total loans outstanding were 0.40% at June 30, 2022, 0.41% at March 31, 2022, and 0.61% at June 30, 2021.
•Due primarily to the sale during the quarter of a residential construction project held in other real estate owned since early 2020, nonperforming assets to total assets declined to 0.27% at June 30, 2022, compared to 0.35% at March 31, 2022, and 0.49% at June 30, 2021.
•The ratio of allowance for credit losses to total loans was 1.39% at June 30, 2022, 1.39% at March 31, 2022, and 1.49% at June 30, 2021. Excluding PPP loans, the ratio of allowance for credit losses to total loans at June 30, 2022 was 1.39%, compared to 1.40% at March 31, 2022 and 1.60% at June 30, 2021.
•Net recoveries of $0.1 million for the second quarter of 2022 compared to net charge-offs of $0.1 million in the first quarter of 2022 and $0.7 million in the second quarter of 2021. Net charge-offs for the four most recent quarters averaged 0.04%.
•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 $558 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 29% and 192% of total bank-level risk-based capital, respectively, compared to 22% and 189% respectively, at March 31, 2022. On a consolidated basis, construction and land development and commercial real estate loans represent 27% and 176%, 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 June 30, 2022, of 16.8% compared to 16.8% at March 31, 2022, and 18.3% at June 30, 2021. The total capital ratio was 17.7% and the tier 1 leverage ratio was 11.6% at June 30, 2022.
•Cash and cash equivalents at June 30, 2022 totaled $901.4 million, a decrease of $321.1 million, or 26%, from March 31, 2022, resulting from loan growth, investment in the securities portfolio, and deposit outflows, primarily attributed to seasonally higher tax payments by commercial customers.
•Tangible common equity to tangible assets was 9.74% at June 30, 2022, compared to 9.89% at March 31, 2022, and 10.43% at June 30, 2021. Declines in the value of available for sale securities due to rising interest rates in the first half of 2022 negatively impacted equity year to date by $116.5 million.

•At June 30, 2022, the Company had available unsecured lines of credit of $165.0 million and lines of credit under lendable collateral value of $2.2 billion. Additionally, $2.1 million of debt securities and $0.7 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
2Q'221Q'224Q'213Q'212Q'21
Selected Balance Sheet Data:
Total Assets$10,811,704 $10,904,817 $9,681,433 $9,893,498 $9,316,833 
Gross Loans6,541,548 6,451,217 5,925,029 5,905,884 5,437,049 
Total Deposits9,188,953 9,243,768 8,067,589 8,334,172 7,836,436 
Performance Measures:
Net Income$32,755 $20,588 $36,330 $22,944 $31,410 
Net Interest Margin3.38 %3.25 %3.16 %3.22 %3.23 %
Average Diluted Shares Outstanding61,923 61,704 59,016 57,645 55,901 
Diluted Earnings Per Share (EPS)$0.53 $0.33 $0.62 $0.40 $0.56 
Return on (annualized):
Average Assets (ROA)1.21 %0.79 %1.43 %0.93 %1.40 %
Average Tangible Assets (ROTA)2
1.29 0.85 1.51 1.00 1.48 
Average Tangible Common Equity (ROTCE)2
13.01 8.02 14.29 9.56 13.88 
Tangible Common Equity to Tangible Assets2
9.74 9.89 11.09 10.62 10.43 
Tangible Book Value Per Share2
$16.66 $17.12 $17.84 $17.52 $17.08 
Efficiency Ratio56.22 %62.33 %53.70 %59.55 %54.93 %
Adjusted Operating Measures1:
Adjusted Net Income$36,327 $27,056 $36,854 $29,350 $33,251 
Adjusted Diluted EPS0.59 0.44 0.62 0.51 0.59 
Adjusted ROTA2
1.38 %1.06 %1.49 %1.23 %1.52 %
Adjusted ROTCE2
13.97 10.01 14.11 11.72 14.27 
Adjusted Efficiency Ratio53.15 54.86 53.43 51.50 53.49 
Net Adjusted Noninterest Expense as a
Percent of Average Tangible Assets2
2.00 1.99 1.96 1.95 1.98 
Other Data:
Market capitalization3
$2,028,996 $2,144,586 $2,070,465 $1,972,784 $1,893,141 
Full-time equivalent employees1,095 1,066 989 995 946 
Number of ATMs79 79 75 72 75 
Full-service banking offices58 58 54 52 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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Second Quarter 2022 Strategic Highlights

Capitalizing on Seacoast’s Commitment to Digital Transformation
•Consistent investments in recent years in client-facing technology and high-performing bankers continue to generate solid performance in new customer acquisition and organic balance sheet growth. As we seek to build the most competitive banking franchise in Florida, we are driving continued transformation across our technology capabilities.
•Early in 2022, we successfully launched a unified customer user experience by upgrading our digital platforms including mobile, consumer internet banking and business internet banking. These digital investments have dramatically improved our customer experience, reflected in a 20% reduction of inbound calls to our telephone support center. We expect to introduce additional digital features in the third and fourth quarters.
•Use of online and mobile features including Zelle® have surpassed our estimates, with ten times the utilization of payment features compared to our previous platform. Over 15,000 online banking users have opted into our account aggregation service.
•During the second quarter, we completed the first phase of our enhanced digital account opening solution, which streamlined account opening for customers while positioning the bank to more effectively scale across the state.
Driving Sustainable Growth and Expanding our Footprint
•Seacoast’s balanced growth strategy includes organic growth and expansion initiatives across the state. Thus far in 2022, Seacoast has expanded the franchise into Naples, Sarasota, and Jacksonville. The combination of a strong Florida economy, the build-out of our commercial franchise across the state, and additions to our consumer and mortgage lending teams drove diversified loan production during the quarter.
•During the second quarter, the Company continued to strengthen its commercial banking franchise, adding five commercial bankers across the footprint. In addition, Tom Lambert, previously with Truist, joined Seacoast as Market President for the Tampa Bay region. Tom is a well-known leader in the Tampa Bay market, having spent the last several years leading middle market for heritage BB&T.
•The Company added six new treasury officers across the state during the second quarter, providing additional support and treasury management expertise further, supporting the Company’s middle market buildout.
Scaling and Evolving Our Culture
•For the third consecutive year, Seacoast has been recognized by the Human Rights Foundation, earning a perfect score for Workplace Equality in the 2022 Corporate Equality index. In addition, the Orlando Business Journal recognized Seacoast as a Best Place to Work for 2022. These honors highlight our commitment to employees’ well-being, as well as our numerous diversity and inclusion initiatives.
    
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OTHER INFORMATION
Conference Call Information
Seacoast will host a conference call on July 29, 2022 at 10:00 a.m. (Eastern Time) to discuss the second quarter 2022 earnings results and business trends. Investors may call in (toll-free) by dialing (866) 374-5140 (passcode: 1306 5710#; 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 July 29, 2022, and can be accessed via a link at www.SeacoastBanking.com under the heading “Corporate Information,” using the passcode EV00135641.

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 July 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 $10.8 billion in assets and $9.2 billion in deposits as of June 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 Apollo Bancshares, Inc. and Apollo Bank with and into Seacoast and Seacoast National Bank, respectively. Seacoast has also filed a registration statement on Form S-4 with the SEC in connection with the proposed merger of Drummond Banking Company and Drummond Community Bank with and into Seacoast and Seacoast National Bank, respectively. The registration statements in connection with the mergers include a proxy statement of Apollo Bancshares, Inc., Apollo Bank and Drummond Banking Company, respectively, and a prospectus of Seacoast. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. WE URGE INVESTORS TO READ THE PROXY STATEMENTS/PROSPECTUSES AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE MERGERS OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENTS/PROSPECTUSES BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.

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

Apollo Bancshares, Inc. and Apollo Bank, their directors, and executive officers and other members of management and employees may be considered participants in the solicitation of proxies in connection with the proposed mergers with and into Seacoast and Seacoast National Bank. Information regarding the participants in the proxy solicitation of Apollo Bancshares, Inc. and Apollo Bank 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.

Drummond Banking Company and Drummond Community Bank, their directors, and executive officers and other members of management and employees may be considered participants in the solicitation of proxies in connection with the proposed mergers with and into Seacoast and Seacoast National Bank. Information regarding the participants in the proxy solicitation of Drummond Banking Company and a description of its direct and indirect



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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, or expects to acquire, including Apollo Bancshares, Inc. and Drummond Banking Company, 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 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



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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. and Drummond Banking Company mergers include, without limitation, failure to obtain the approval of shareholders of Apollo Bancshares, Inc., Apollo Bank and Drummond Banking Company in connection with the mergers; the timing to consummate the proposed mergers; the risk that a condition to the closing of the proposed mergers may not be satisfied; the risk that a regulatory approval that may be required for the proposed mergers 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 mergers; the parties' ability to promptly and effectively integrate the businesses of Seacoast, Apollo Bancshares, Inc. and Drummond Banking Company, 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 mergers; the failure to consummate or any delay in consummating the mergers 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.

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 report on Form 10-Q for the quarter ended March 31, 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 TrendsSix Months Ended
(Amounts in thousands, except ratios and per share data)2Q'221Q'224Q'213Q'212Q'212Q'222Q'21
Summary of Earnings
Net income$32,755 $20,588 $36,330 $22,944 $31,410 $53,343 $65,129 
Adjusted net income1
36,327 27,056 36,854 29,350 33,251 63,383 68,748 
Net interest income2
81,764 76,639 72,412 71,455 65,933 158,403 132,674 
Net interest margin2,3
3.38 %3.25 %3.16 %3.22 %3.23 %3.32 %3.37 %
Performance Ratios
Return on average assets-GAAP basis3
1.21 %0.79 %1.43 %0.93 %1.40 %1.00 %1.50 %
Return on average tangible assets-GAAP basis3,4
1.29 0.85 1.51 1.00 1.48 1.07 1.58 
Adjusted return on average tangible assets1,3,4
1.38 1.06 1.49 1.23 1.52 1.23 1.63 
Net adjusted noninterest expense to average tangible assets1,3,4
2.00 1.99 1.96 1.95 1.98 2.00 2.07 
Return on average shareholders' equity-GAAP basis3
9.73 5.96 11.06 7.29 10.76 7.82 11.39 
Return on average tangible common equity-GAAP basis3,4
13.01 8.02 14.29 9.56 13.88 10.46 14.73 
Adjusted return on average tangible common equity1,3,4
13.97 10.01 14.11 11.72 14.27 11.95 15.12 
Efficiency ratio5
56.22 62.33 53.70 59.55 54.93 59.17 54.05 
Adjusted efficiency ratio1
53.15 54.86 53.43 51.50 53.49 53.97 52.72 
Noninterest income to total revenue (excluding securities gains/losses)17.45 17.14 20.89 21.09 18.94 17.30 20.03 
Tangible common equity to tangible assets4
9.74 9.89 11.09 10.62 10.43 9.74 10.43 
Average loan-to-deposit ratio70.60 71.25 70.29 69.97 74.13 70.92 77.62 
End of period loan-to-deposit ratio71.34 70.01 73.84 71.46 69.93 71.34 69.93 
Per Share Data
Net income diluted-GAAP basis$0.53 $0.33 $0.62 $0.40 $0.56 $0.86 $1.17 
Net income basic-GAAP basis0.53 0.34 0.62 0.40 0.57 0.87 1.18 
Adjusted earnings1
0.59 0.44 0.62 0.51 0.59 1.03 1.23 
Book value per share common21.65 22.15 22.40 22.12 21.33 21.65 21.33 
Tangible book value per share16.66 17.12 17.84 17.52 17.08 16.66 17.08 
Cash dividends declared0.17 0.13 0.13 0.13 0.13 0.30 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 TrendsSix Months Ended
(Amounts in thousands, except per share data)2Q'221Q'224Q'213Q'212Q'212Q'222Q'21
Interest on securities:
Taxable$12,387 $10,041 $8,574 $7,775 $6,559 $22,428 $12,857 
Nontaxable138 140 139 143 147 278 295 
Fees on PPP loans676 1,373 3,011 5,218 3,877 2,049 9,267 
Interest on PPP loans65 150 341 699 1,251 215 2,747 
Interest and fees on loans - excluding PPP loans68,566 65,595 61,049 58,507 55,220 134,161 110,632 
Interest on federal funds sold and other investments1,917 933 828 867 709 2,850 1,295 
Total Interest Income83,749 78,232 73,942 73,209 67,763 161,981 137,093 
Interest on deposits994 767 711 849 980 1,761 2,045 
Interest on time certificates436 468 494 583 524 904 1,711 
Interest on borrowed money672 475 448 453 457 1,147 925 
Total Interest Expense2,102 1,710 1,653 1,885 1,961 3,812 4,681 
Net Interest Income81,647 76,522 72,289 71,324 65,802 158,169 132,412 
Provision for credit losses822 6,556 (3,942)5,091 (4,855)7,378 (10,570)
Net Interest Income After Provision for Credit Losses80,825 69,966 76,231 66,233 70,657 150,791 142,982 
Noninterest income:
Service charges on deposit accounts3,408 2,801 2,606 2,495 2,338 6,209 4,676 
Interchange income4,255 4,128 4,135 4,131 4,145 8,383 7,965 
Wealth management income2,774 2,659 2,356 2,562 2,387 5,433 4,710 
Mortgage banking fees932 1,686 2,030 2,550 2,977 2,618 7,202 
Marine finance fees312 191 147 152 177 503 366 
SBA gains473 156 200 812 232 629 519 
BOLI income1,349 1,334 1,295 1,128 872 2,683 1,731 
Other3,761 2,870 6,316 5,228 2,249 6,631 5,993 
17,264 15,825 19,085 19,058 15,377 33,089 33,162 
Securities losses, net(300)(452)(379)(30)(55)(752)(169)
Total Noninterest Income16,964 15,373 18,706 19,028 15,322 32,337 32,993 
Noninterest expenses:
Salaries and wages28,056 28,219 25,005 27,919 22,966 56,275 44,359 
Employee benefits4,151 5,501 4,763 4,177 3,953 9,652 8,933 
Outsourced data processing costs6,043 6,156 5,165 5,610 4,676 12,199 9,144 
Telephone / data lines908 733 790 810 838 1,641 1,623 
Occupancy4,050 3,986 3,500 3,541 3,310 8,036 7,099 
Furniture and equipment1,588 1,426 1,403 1,567 1,166 3,014 2,420 
Marketing1,882 1,171 1,060 1,353 1,002 3,053 2,170 
Legal and professional fees2,946 4,789 2,461 4,151 2,182 7,735 4,764 
FDIC assessments699 789 713 651 515 1,488 1,041 
Amortization of intangibles1,446 1,446 1,304 1,306 1,212 2,892 2,423 
Foreclosed property expense and net (gain) loss on sale(968)(164)(175)66 (90)(1,132)(155)
Provision for credit losses on unfunded commitments— 142 — 133 — 142 — 
Other5,347 4,723 4,274 3,984 4,054 10,070 8,083 
Total Noninterest Expense56,148 58,917 50,263 55,268 45,784 115,065 91,904 
Income Before Income Taxes41,641 26,422 44,674 29,993 40,195 68,063 84,071 
Income taxes8,886 5,834 8,344 7,049 8,785 14,720 18,942 
Net Income$32,755 $20,588 $36,330 $22,944 $31,410 $53,343 $65,129 
Per share of common stock:
Net income diluted$0.53 $0.33 $0.62 $0.40 $0.56 $0.86 $1.17 
Net income basic0.53 0.34 0.62 0.40 0.57 0.87 1.18 
Cash dividends declared0.17 0.13 0.13 0.13 0.13 0.30 0.13 
Average diluted shares outstanding61,923 61,704 59,016 57,645 55,901 61,818 55,827 
Average basic shares outstanding61,409 61,127 58,462 57,148 55,421 61,269 55,347 


CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
June 30,March 31,December 31,September 30,June 30,
(Amounts in thousands)20222022202120212021
Assets
Cash and due from banks$363,343 $351,128 $238,750 $199,460 $97,468 
Interest bearing deposits with other banks538,025 871,387 498,979 1,028,235 1,351,377 
Total Cash and Cash Equivalents901,368 1,222,515 737,729 1,227,695 1,448,845 
Time deposits with other banks4,730 5,975 — 750 750 
Debt Securities:
Available for sale (at fair value)1,800,791 1,706,619 1,644,319 1,546,155 1,322,776 
Held to maturity (at amortized cost)794,785 747,004 638,640 526,502 493,467 
Total Debt Securities2,595,576 2,453,623 2,282,959 2,072,657 1,816,243 
Loans held for sale14,205 20,615 31,791 49,597 42,793 
Loans6,541,548 6,451,217 5,925,029 5,905,884 5,437,049 
Less: Allowance for credit losses(90,769)(89,838)(83,315)(87,823)(81,127)
Net Loans6,450,779 6,361,379 5,841,714 5,818,061 5,355,922 
Bank premises and equipment, net74,784 74,617 72,404 71,250 69,392 
Other real estate owned2,419 11,567 13,618 13,628 12,804 
Goodwill286,606 286,606 252,154 252,154 221,176 
Other intangible assets, net20,062 21,549 14,845 16,153 14,106 
Bank owned life insurance207,724 206,375 205,041 193,747 158,506 
Net deferred tax assets60,080 47,222 27,321 24,187 21,839 
Other assets193,371 192,774 201,857 153,619 154,457 
Total Assets$10,811,704 $10,904,817 $9,681,433 $9,893,498 $9,316,833 
Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest demand$3,593,201 $3,522,700 $3,075,534 $3,086,466 $2,952,160 
Interest-bearing demand2,269,148 2,253,562 1,890,212 1,845,165 1,763,884 
Savings946,738 937,839 895,019 834,309 811,516 
Money market1,911,847 1,999,027 1,651,881 1,951,639 1,807,190 
Other time certificates350,571 397,491 404,601 437,973 335,370 
Brokered time certificates— — — 20,000 20,000 
Time certificates of more than $250,000117,448 133,149 150,342 158,620 146,316 
Total Deposits9,188,953 9,243,768 8,067,589 8,334,172 7,836,436 
Securities sold under agreements to repurchase110,578 120,922 121,565 105,548 119,973 
Subordinated debt71,786 71,716 71,646 71,576 71,506 
Other liabilities110,812 112,126 109,897 91,682 106,571 
Total Liabilities9,482,129 9,548,532 8,370,697 8,602,978 8,134,486 
Shareholders' Equity
Common stock6,141 6,124 5,850 5,835 5,544 
Additional paid in capital1,065,167 1,062,462 963,851 959,644 862,598 
Retained earnings393,431 371,192 358,598 329,918 314,584 
Treasury stock(11,632)(10,459)(10,569)(10,146)(10,180)
1,453,107 1,429,319 1,317,730 1,285,251 1,172,546 
Accumulated other comprehensive (loss) income, net(123,532)(73,034)(6,994)5,269 9,801 
Total Shareholders' Equity1,329,575 1,356,285 1,310,736 1,290,520 1,182,347 
Total Liabilities & Shareholders' Equity $10,811,704 $10,904,817 $9,681,433 $9,893,498 $9,316,833 
Common shares outstanding61,410 61,239 58,504 58,349 55,436 



CONSOLIDATED QUARTERLY FINANCIAL DATA(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
(Amounts in thousands)2Q'221Q'224Q'213Q'212Q'21
Credit Analysis
Net (recoveries) charge-offs - non-acquired loans$(75)$72 $541 $198 $214 
Net (recoveries) charge-offs - acquired loans(49)7 29 1,234 441 
Total Net (Recoveries) Charge-offs (124)79 570 1,432 655 
Net (recoveries) charge-offs to average loans - non-acquired loans— %— %0.04 %0.01 %0.02 %
Net (recoveries) charge-offs to average loans - acquired loans— — — 0.09 0.03 
Total Net (Recoveries) Charge-offs to Average Loans— — 0.04 0.10 0.05 
Allowance for credit losses - non-acquired loans$70,215 $67,261 $64,710 $64,740 $64,525 
Allowance for credit losses - acquired loans20,554 22,577 18,605 23,083 16,602 
Total Allowance for Credit Losses$90,769 $89,838 $83,315 $87,823 $81,127 
Non-acquired loans at end of period$5,389,405 $5,169,973 $4,860,171 $4,608,801 $4,290,622 
Acquired loans at end of period1,134,940 1,241,988 973,751 1,106,481 782,315 
Paycheck Protection Program loans at end of period17,203 39,256 91,107 190,602 364,112 
Total Loans$6,541,548 $6,451,217 $5,925,029 $5,905,884 $5,437,049 
Non-acquired loans allowance for credit losses to non-acquired loans at end of period1.30 %1.30 %1.33 %1.40 %1.50 %
Total allowance for credit losses to total loans at end of period1.39 1.39 1.41 1.49 1.49 
Total allowance for credit losses to total loans, excluding PPP loans1.39 1.40 1.43 1.54 1.60 
Purchase discount on acquired loans at end of period1.84 1.89 2.27 2.27 2.98 
End of Period
Nonperforming loans$26,442 $26,209 $30,598 $32,612 $32,920 
Other real estate owned109 9,256 12,223 11,843 11,019 
Properties previously used in bank operations included in other real estate owned2,310 2,310 1,395 1,785 1,785 
Total Nonperforming Assets$28,861 $37,775 $44,216 $46,240 $45,724 
Accruing troubled debt restructures (TDRs)$4,022 $4,454 $3,917 $4,047 $4,037 
Nonperforming Loans to Loans at End of Period0.40 %0.41 %0.52 %0.55 %0.61 %
Nonperforming Assets to Total Assets at End of Period0.27 0.35 0.46 0.47 0.49 
June 30,March 31,December 31,September 30,June 30,
Loans20222022202120212021
Construction and land development$350,025 $259,421 $230,824 $227,459 $234,347 
Commercial real estate - owner occupied1,254,343 1,284,515 1,197,774 1,201,336 1,127,640 
Commercial real estate - non-owner occupied1,972,540 1,966,150 1,736,439 1,673,587 1,412,439 
Residential real estate1,647,465 1,599,645 1,425,354 1,467,329 1,226,536 
Commercial and financial1,124,771 1,132,506 1,069,356 982,552 900,206 
Consumer175,201 169,724 174,175 163,019 171,769 
Paycheck Protection Program17,203 39,256 91,107 190,602 364,112 
Total Loans$6,541,548 $6,451,217 $5,925,029 $5,905,884 $5,437,049 



AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1
(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
2Q'221Q'222Q'21
AverageYield/AverageYield/AverageYield/
(Amounts in thousands)BalanceInterestRateBalanceInterestRateBalanceInterestRate
Assets
Earning assets:
Securities:
Taxable$2,517,879 $12,387 1.97 %$2,406,399 $10,041 1.67 %$1,629,410 $6,559 1.61 %
Nontaxable22,443 175 3.12 24,042 177 2.94 25,581 186 2.90 
Total Securities2,540,322 12,562 1.98 2,430,441 10,218 1.68 1,654,991 6,745 1.63 
Federal funds sold644,144 1,281 0.80 738,588 350 0.19 816,455 226 0.11 
Other investments46,257 636 5.51 44,999 583 5.25 108,868 483 1.78 
Loans excluding PPP loans6,454,444 68,647 4.27 6,276,964 65,675 4.24 5,092,897 55,313 4.36 
PPP loans26,322 741 11.29 61,923 1,523 9.98 505,339 5,127 4.07 
Total Loans6,480,766 69,388 4.29 6,338,887 67,198 4.30 5,598,236 60,440 4.33 
Total Earning Assets9,711,489 83,867 3.46 9,552,915 78,349 3.33 8,178,550 67,894 3.33 
Allowance for credit losses(90,242)(87,467)(86,042)
Cash and due from banks389,695 365,835 327,171 
Premises and equipment74,614 75,876 70,033 
Intangible assets307,411 304,321 235,964 
Bank owned life insurance206,839 205,500 133,484 
Other assets240,712 211,536 166,686 
Total Assets$10,840,518 $10,628,516 $9,025,846 
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand$2,262,408 $293 0.05 %$2,097,383 $190 0.04 %$1,692,178 $235 0.06 %
Savings962,264 64 0.03 925,348 65 0.03 790,734 118 0.06 
Money market1,938,421 637 0.13 1,976,660 512 0.11 1,736,481 627 0.14 
Time deposits496,186 436 0.35 560,681 468 0.34 533,350 524 0.39 
Securities sold under agreements to repurchase120,437 94 0.31 118,146 39 0.13 115,512 35 0.12 
Other borrowings71,740 579 3.24 71,670 436 2.47 71,460 422 2.37 
Total Interest-Bearing Liabilities5,851,456 2,103 0.14 5,749,888 1,710 0.12 4,939,715 1,961 0.16 
Noninterest demand3,520,700 3,336,121 2,799,643 
Other liabilities117,793 141,972 116,093 
Total Liabilities9,489,949 9,227,981 7,855,451 
Shareholders' equity1,350,568 1,400,535 1,170,395 
Total Liabilities & Equity$10,840,518 $10,628,516 $9,025,846 
Cost of deposits0.06 %0.06 %0.08 %
Interest expense as a % of earning assets0.09 %0.07 %0.10 %
Net interest income as a % of earning assets$81,764 3.38 %$76,639 3.25 %$65,933 3.23 %
1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.
Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.



AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1
(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Six Months Ended June 30, 2022Six Months Ended June 30, 2021
AverageYield/AverageYield/
(Amounts in thousands, except ratios)BalanceInterestRateBalanceInterestRate
Assets
Earning assets:
Securities:
Taxable$2,462,447 $22,428 1.82 %$1,590,152 $12,857 1.62 %
Nontaxable23,238 352 3.03 25,756 373 2.90 
Total Securities2,485,685 22,780 1.83 1,615,908 13,230 1.64 
Federal funds sold691,105 1,631 0.48 556,425 299 0.11 
Other investments45,631 1,219 5.39 96,422 996 2.08 
Loans excluding PPP loans6,366,194 134,322 4.25 5,121,114 110,817 4.36 
PPP loans44,024 2,264 10.37 557,247 12,013 4.35 
Total Loans6,410,218 136,586 4.30 5,678,361 122,830 4.36 
Total Earning Assets9,632,639 162,216 3.40 7,947,116 137,355 3.49 
Allowance for credit losses(88,862)(88,873)
Cash and due from banks377,831 291,626 
Premises and equipment75,241 72,141 
Intangible assets305,875 236,640 
Bank owned life insurance206,173 132,785 
Other assets226,205 165,658 
Total Assets$10,735,102 $8,757,093 
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand$2,180,351 $483 0.04 %$1,646,587 $493 0.06 %
Savings943,908 129 0.03 756,693 255 0.07 
Money market1,957,435 1,149 0.12 1,673,559 1,297 0.16 
Time deposits528,255 904 0.35 621,844 1,711 0.55 
Securities sold under agreements to repurchase119,298 133 0.22 114,181 76 0.13 
Other borrowings71,706 1,015 2.85 71,425 849 2.40 
Total Interest-Bearing Liabilities5,800,953 3,813 0.13 4,884,289 4,681 0.19 
Noninterest demand3,428,921 2,616,856 
Other liabilities129,812 102,450 
Total Liabilities9,359,686 7,603,595 
Shareholders' equity1,375,413 1,153,499 
Total Liabilities & Equity$10,735,102 $8,757,093 
Cost of deposits0.06 %0.10 %
Interest expense as a % of earning assets0.08 %0.12 %
Net interest income as a % of earning assets$158,403 3.32 %$132,674 3.37 %
1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.
Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.


CONSOLIDATED QUARTERLY FINANCIAL DATA(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
June 30,March 31,December 31,September 30,June 30,
(Amounts in thousands)20222022202120212021
Customer Relationship Funding
Noninterest demand
Commercial$2,945,445 $2,939,595 $2,477,111 $2,535,922 $2,431,928 
Retail464,214 458,809 458,626 416,779 401,988 
Public funds143,075 86,419 107,523 84,337 88,057 
Other40,467 37,877 32,274 49,428 30,187 
Total Noninterest Demand3,593,201 3,522,700 3,075,534 3,086,466 2,952,160 
Interest-bearing demand
Commercial769,948 610,109 497,466 554,366 545,797 
Retail1,207,698 1,392,490 1,144,635 1,069,668 958,619 
Public funds291,502 250,963 248,111 221,131 259,468 
Total Interest-Bearing Demand2,269,148 2,253,562 1,890,212 1,845,165 1,763,884 
Total transaction accounts
Commercial3,715,393 3,549,704 2,974,577 3,090,288 2,977,725 
Retail1,671,912 1,851,299 1,603,261 1,486,447 1,360,607 
Public funds434,577 337,382 355,634 305,468 347,525 
Other40,467 37,877 32,274 49,428 30,187 
Total Transaction Accounts5,862,349 5,776,262 4,965,746 4,931,631 4,716,044 
Savings946,738 937,839 895,019 834,309 811,516 
Money market
Commercial819,452 856,117 732,639 827,901 787,894 
Retail914,918 931,702 840,054 834,628 737,554 
Brokered106,823 126,168 8,007 196,548 187,023 
Public funds70,654 85,040 71,181 92,562 94,719 
Total Money Market1,911,847 1,999,027 1,651,881 1,951,639 1,807,190 
Brokered time certificates— — — 20,000 20,000 
Other time certificates468,019 530,640 554,943 596,593 481,686 
468,019 530,640 554,943 616,593 501,686 
Total Deposits$9,188,953 $9,243,768 $8,067,589 $8,334,172 $7,836,436 
Customer sweep accounts$110,578 $120,922 $121,565 $105,548 $119,973 





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 TrendsSix Months Ended
(Amounts in thousands, except per share data)2Q'221Q'224Q'213Q'212Q'212Q'222Q'21
Net Income$32,755 $20,588 $36,330 $22,944 $31,410 $53,343 $65,129 
Total noninterest income16,964 15,373 18,706 19,028 15,322 32,337 32,993 
Securities losses (gains), net300 452 379 30 55 752 169 
Gain on sale of domain name (included in other income)— — (755)— — — — 
Total Adjustments to Noninterest Income300 452 (376)30 55 752 169 
Total Adjusted Noninterest Income17,264 15,825 18,330 19,058 15,377 33,089 33,162 
Total noninterest expense56,148 58,917 50,263 55,268 45,784 115,065 91,904 
Merger related charges(3,039)(6,692)(482)(6,281)(509)(9,731)(1,090)
Amortization of intangibles(1,446)(1,446)(1,304)(1,306)(1,212)(2,892)(2,423)
Branch reductions and other expense initiatives— (74)(168)(870)(663)(74)(1,112)
Total Adjustments to Noninterest Expense(4,485)(8,212)(1,954)(8,457)(2,384)(12,697)(4,625)
Total Adjusted Noninterest Expense51,663 50,705 48,309 46,811 43,400 102,368 87,279 
Income Taxes8,886 5,834 8,344 7,049 8,785 14,720 18,942 
Tax effect of adjustments 1,213 2,196 280 2,081 598 3,409 1,175 
Effect of change in corporate tax rate on deferred tax assets— — 774 — — — — 
Total Adjustments to Income Taxes1,213 2,196 1,054 2,081 598 3,409 1,175 
Adjusted Income Taxes10,099 8,030 9,398 9,130 9,383 18,129 20,117 
Adjusted Net Income$36,327 $27,056 $36,854 $29,350 $33,251 $63,383 $68,748 
Earnings per diluted share, as reported$0.53 $0.33 $0.62 $0.40 $0.56 $0.86 $1.17 
Adjusted Earnings per Diluted Share 0.59 0.44 0.62 0.51 0.59 1.03 1.23 
Average diluted shares outstanding 61,923 61,704 59,016 57,645 55,901 61,818 55,827 
Adjusted Noninterest Expense$51,663 $50,705 $48,309 $46,811 $43,400 $102,368 $87,279 
Provision for credit losses on unfunded commitments— (142)— (133)— (142)— 
Foreclosed property expense and net gain / (loss) on sale 968 164 175 (66)90 1,132 155 
Net Adjusted Noninterest Expense$52,631 $50,727 $48,484 $46,612 $43,490 $103,358 $87,434 
Revenue$98,611 $91,895 $90,995 $90,352 $81,124 $190,506 $165,405 
Total Adjustments to Revenue300 452 (376)30 55 752 169 
Impact of FTE adjustment117 117 123 131 131 234 262 
Adjusted Revenue on a fully taxable equivalent basis$99,028 $92,464 $90,742 $90,513 $81,310 $191,492 $165,836 
Adjusted Efficiency Ratio53.15 %54.86 %53.43 %51.50 %53.49 %53.97 %52.72 %
Net Interest Income$81,647 $76,522 $72,289 $71,324 $65,802 $158,169 $132,412 
Impact of FTE adjustment117 117 123 131 131 234 262 
Net Interest Income including FTE adjustment$81,764 $76,639 $72,412 $71,455 $65,933 $158,403 $132,674 
Total noninterest income16,964 15,373 18,706 19,028 15,322 32,337 32,993 
Total noninterest expense56,148 58,917 50,263 55,268 45,784 115,065 91,904 
Pre-Tax Pre-Provision Earnings$42,580 $33,095 $40,855 $35,215 $35,471 $75,675 $73,763 
Total Adjustments to Noninterest Income300 452 (376)30 55 752 169 
Total Adjustments to Noninterest Expense(3,517)(8,190)(1,779)(8,656)(2,294)(11,707)(4,470)
Adjusted Pre-Tax Pre-Provision Earnings$46,397 $41,737 $42,258 $43,901 $37,820 $88,134 $78,402 
Average Assets$10,840,518 $10,628,516 $10,061,382 $9,753,734 $9,025,846 $10,735,102 $8,757,093 
Less average goodwill and intangible assets(307,411)(304,321)(267,692)(254,980)(235,964)(305,875)(236,640)
Average Tangible Assets$10,533,107 $10,324,195 $9,793,690 $9,498,754 $8,789,882 $10,429,227 $8,520,453 
Return on Average Assets (ROA)1.21 %0.79 %1.43 %0.93 %1.40 %1.00 %1.50 %
Impact of removing average intangible assets and related amortization 0.08 0.06 0.08 0.07 0.08 0.07 0.08 
Return on Average Tangible Assets (ROTA)1.29 0.85 1.51 1.00 1.48 1.07 1.58 


GAAP TO NON-GAAP RECONCILIATION(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Quarterly TrendsSix Months Ended
(Amounts in thousands, except per share data)2Q'221Q'224Q'213Q'212Q'212Q'222Q'21
Impact of other adjustments for Adjusted Net Income 0.09 0.21 (0.02)0.23 0.04 0.16 0.05 
Adjusted Return on Average Tangible Assets1.38 1.06 1.49 1.23 1.52 1.23 1.63 
Average Shareholders' Equity$1,350,568 $1,400,535 $1,303,686 $1,248,547 $1,170,395 $1,375,413 $1,153,499 
Less average goodwill and intangible assets(307,411)(304,321)(267,692)(254,980)(235,964)(305,875)(236,640)
Average Tangible Equity$1,043,157 $1,096,214 $1,035,994 $993,567 $934,431 $1,069,538 $916,859 
Return on Average Shareholders' Equity 9.73 %5.96 %11.06 %7.29 %10.76 %7.82 %11.39 %
Impact of removing average intangible assets and related amortization 3.28 2.06 3.23 2.27 3.12 2.64 3.34 
Return on Average Tangible Common Equity (ROTCE)13.01 8.02 14.29 9.56 13.88 10.46 14.73 
Impact of other adjustments for Adjusted Net Income 0.96 1.99 (0.18)2.16 0.39 1.49 0.39 
Adjusted Return on Average Tangible Common Equity 13.97 10.01 14.11 11.72 14.27 11.95 15.12 
Loan interest income1
$69,388 $67,198 $64,487 $64,517 $60,440 $136,586 $122,830 
Accretion on acquired loans(2,720)(3,717)(3,520)(3,483)(2,886)(6,437)(5,754)
Interest and fees on PPP loans(741)(1,523)(3,352)(5,917)(5,127)(2,264)(12,013)
Loan interest income excluding PPP and accretion on acquired loans$65,927 $61,958 $57,615 $55,117 $52,427 $127,885 $105,063 
Yield on loans1
4.29 4.30 4.31 4.49 4.33 4.30 4.36 
Impact of accretion on acquired loans (0.16)(0.24)(0.24)(0.24)(0.21)(0.21)(0.20)
Impact of PPP loans(0.03)(0.06)(0.13)(0.22)0.01 (0.04)(0.02)
Yield on loans excluding PPP and accretion on acquired loans4.10 %4.00 %3.94 %4.03 %4.13 %4.05 %4.14 %
Net Interest Income1
$81,764 $76,639 $72,412 $71,455 $65,933 $158,403 $132,674 
Accretion on acquired loans(2,720)(3,717)(3,520)(3,483)(2,886)(6,437)(5,754)
Interest and fees on PPP loans(741)(1,523)(3,352)(5,917)(5,127)(2,264)(12,013)
Net interest income excluding PPP and accretion on acquired loans$78,303 $71,399 $65,540 $62,055 $57,920 $149,702 $114,907 
Net Interest Margin3.38 3.25 3.16 3.22 3.23 3.32 3.37 
Impact of accretion on acquired loans (0.12)(0.15)(0.15)(0.15)(0.14)(0.14)(0.15)
Impact of PPP loans(0.02)(0.05)(0.10)(0.18)(0.06)(0.03)(0.08)
Net interest margin excluding PPP and accretion on acquired loans3.24 %3.05 %2.91 %2.89 %3.03 %3.15 %3.14 %
Security interest income1
$12,562 $10,218 $8,750 $7,956 $6,745 $22,780 $13,230 
Tax equivalent adjustment on securities(36)(37)(37)(38)(39)(73)(78)
Security interest income excluding tax equivalent adjustment$12,526 $10,181 $8,713 $7,918 $6,706 $22,707 $13,152 
Loan interest income1
$69,388 $67,198 $64,487 $64,517 $60,440 $136,586 $122,830 
Tax equivalent adjustment on loans(81)(80)(86)(93)(92)(161)(184)
Loan interest income excluding tax equivalent adjustment$69,307 $67,118 $64,401 $64,424 $60,348 $136,425 $122,646 
Net Interest Income1
$81,764 $76,639 $72,412 $71,455 $65,933 $158,403 $132,674 
Tax equivalent adjustment on securities(36)(37)(37)(38)(39)(73)(78)
Tax equivalent adjustment on loans(81)(80)(86)(93)(92)(161)(184)
Net interest income excluding tax equivalent adjustment$81,647 $76,522 $72,289 $71,324 $65,802 $158,169 $132,412 
1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.