EX-99.1 2 q32022earningsrelease.htm EX-99.1 q32022earningsrelease.htm
sbcflogoa.gif

SEACOAST REPORTS THIRD QUARTER 2022 RESULTS
Significant Expansion in Net Interest Margin and Net Interest Income Highlight Q3 Results
Well-Positioned Balance Sheet with Strong Capital and Liquidity

STUART, Fla., October 27, 2022 /GLOBE NEWSWIRE/ -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the third quarter of 2022 of $29.2 million, or $0.47 per diluted share. Third quarter 2022 net income decreased 11% compared to the second quarter of 2022 due to higher provision for credit losses resulting from changes in economic forecast factors, and additional coverage for estimated economic impacts from Hurricane Ian. Third quarter 2022 net income increased 27% compared to the third quarter of 2021. Adjusted net income1 for the third quarter of 2022 was $32.8 million, or $0.53 per diluted share. Third quarter 2022 adjusted net income1 decreased 10% compared to the second quarter of 2022 due to a higher provision for credit losses. Third quarter 2022 adjusted net income1 increased 12% compared to the third quarter of 2021. Pre-tax pre-provision earnings1 were $43.1 million in the third quarter of 2022, an increase of 1% compared to the second quarter of 2022 and 23% compared to the third quarter of 2021. Adjusted pre-tax pre-provision earnings1 were $49.0 million in the third quarter of 2022, an increase of 6% compared to the second quarter of 2022 and 12% compared to the third quarter of 2021.
At September 30, 2022, the ratio of tangible common equity to tangible assets increased to 9.79%, and tangible book value per share was $15.98. A decline in the value of the available for sale securities portfolio, driven by rising interest rates during the first three quarters of 2022, negatively impacted the ratio of tangible common equity to tangible assets by 159 basis points and negatively impacted tangible book value per share by $2.93 compared to December 31, 2021.
For the third quarter of 2022, return on average tangible assets was 1.17%, return on average tangible shareholders' equity was 11.53%, and the efficiency ratio was 57.13%, compared to 1.29%, 13.01%, and 56.22%, respectively, in the prior quarter, and 1.00%, 9.56%, and 59.55%, respectively, in the prior year quarter. Adjusted return on average tangible assets1 in the third quarter of 2022 was 1.27%, adjusted return on average tangible shareholders' equity1 was 12.48%, and the adjusted efficiency ratio1 was 53.28%, compared to 1.38%, 13.97%, and 53.15%, respectively, in the prior quarter, and 1.23%, 11.72%, and 51.50%, respectively, in the prior year quarter.
Charles M. Shaffer, Seacoast's Chairman and CEO, said, "Seacoast’s team delivered another solid quarter, highlighted by a significant increase in the net interest margin and net interest income, disciplined growth in loan outstandings, and continued strong asset quality metrics. In addition, quarter over quarter, adjusted pre-tax pre-provision earnings of $49.0 million improved 6%, driven by a material increase in net interest income."
Shaffer added, "We continue to operate the company with a robust balance sheet, fortified by a tangible common equity ratio of 9.79%, which increased over the prior quarter despite rising interest rates that impacted accumulated comprehensive income. We saw continued improvements in already strong credit quality metrics, and the allowance for credit losses totals $95.3 million, with an additional $19.1 million in purchase discount on acquired loans. This provides meaningful loss absorption capacity which, when aggregated, represents 1.71% of loans outstanding. Seacoast’s balance sheet is supported by one of the best customer franchises in the industry, delivering low-cost funding and liquidity. We closed the quarter with a loan to deposit ratio of 76% which, looking forward, allows remix of the balance sheet to higher-yielding earning assets to support continued growth in net interest income."
Shaffer concluded, "I would like to thank all Seacoast associates for focusing on quickly recovering from Hurricane Ian and assisting our customers after the storm passed. All Seacoast branch offices were open within a few days, and the team rapidly pivoted and completed the Apollo and Drummond acquisitions. The team showed remarkable commitment and resilience in the face of a significant weather event, and I am very proud of all involved."






1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.
sbcflogoa.gif
Acquisitions Update
Seacoast’s balanced growth strategy, combining organic growth with value-creating acquisitions, continues to benefit shareholders and expand the franchise across Florida.
On October 7, 2022, the Company completed the previously announced acquisition of Apollo Bancshares, Inc. (“Apollo”), which added approximately $718 million in loans and $857 million in deposits, and will provide expansion into Miami-Dade county, one of the fastest growing and most dynamic markets in the United States. System conversion activities were completed immediately after the closing of the transaction.
Also on October 7, 2022, the Company completed the previously announced acquisition of Drummond Banking Company (“Drummond”), providing Seacoast with an entry point into Gainesville, Ocala, and surrounding markets adding low-cost core deposits and diversified business lines. At the closing date, Drummond had approximately $590 million in loans and $882 million in deposits, providing a strong core deposit base, which highlights depository relationships that will provide a stable funding source for future loan growth and higher margins in a rising rate environment. Full integration and system conversion activities are expected to be completed in the first quarter of 2023.
On August 8, 2022, the Company announced its proposed acquisition of Professional Holding Corp. (“Professional”) (NASDAQ: PFHD), the sixth largest bank headquartered in South Florida. The transaction, which is expected to close in the first quarter of 2023, will increase market share in Miami-Dade, Broward, and Palm Beach counties. Full integration and system conversion activities are expected to be completed late in the second quarter of 2023.
In the first quarter of 2022, Seacoast completed the acquisitions of Sabal Palm Bancorp, Inc. (“Sabal Palm”) in Sarasota and Business Bank of Florida Corp. (“BBFC”) in Brevard County, which collectively added a combined $368 million in loans and $562 million in deposits. Integration activities, including system conversion, were completed in the first quarter of 2022 for BBFC and in the second quarter of 2022 for Sabal Palm.

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

Financial Results
Income Statement
•Net income was $29.2 million, or $0.47 per diluted share, for the third quarter of 2022 compared to net income of $32.8 million, or $0.53 per diluted share, for the prior quarter, and $22.9 million, or $0.40 per diluted share, for the prior year quarter. For the nine months ended September 30, 2022, net income was $82.6 million, or $1.33 per diluted share, compared to $88.1 million, or $1.56 per diluted share, for the nine months ended September 30, 2021. The current year-to-date results included $12.1 million in provision for credit losses, including $5.1 million in the first quarter of 2022 recorded for loans acquired in the Sabal Palm and BBFC transactions, and additional coverage for potential impacts from Hurricane Ian. Prior year-to-date results included the reversal of provision for credit losses of $5.5 million, reflecting improvement at the time in post-COVID economic indicators. Adjusted net income1 for the third quarter of 2022 was $32.8 million, or $0.53 per diluted share. This compares to $36.3 million, or $0.59 per diluted share, for the prior quarter, and $29.4 million, or $0.51 per diluted share, for the prior year quarter. For the nine months ended September 30, 2022, adjusted net income1 was $96.2 million, or $1.56 per diluted share, compared to $98.1 million, or $1.74 per diluted share, for the nine months ended September 30, 2021.
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.    
sbcflogoa.gif
•Net revenues were $104.4 million in the third quarter of 2022, an increase of $5.8 million, or 6%, compared to the prior quarter, and an increase of $14.0 million, or 16%, compared to the prior year quarter. For the nine months ended September 30, 2022, net revenues were $294.9 million, an increase of $39.1 million, or 15%, compared to the nine months ended September 30, 2021. Adjusted revenues1 were $104.7 million in the third quarter of 2022, an increase of $5.8 million, or 6%, compared to the prior quarter, and an increase of $14.4 million, or 16%, compared to the prior year quarter. For the nine months ended September 30, 2022, adjusted revenues1 were $296.0 million, an increase of $40.1 million, or 16%, compared to the nine months ended September 30, 2021.
•On an adjusted basis, pre-tax pre-provision earnings1 were $49.0 million, an increase of 6% compared to the second quarter of 2022 and an increase of 12% compared to the third quarter of 2021.
•Net interest income totaled $88.3 million in the third quarter of 2022, an increase of $6.6 million, or 8%, from the second quarter of 2022 and an increase of $17.0 million, or 24%, compared to the third quarter of 2021. For the nine months ended September 30, 2022, net interest income was $246.5 million, an increase of $42.7 million, or 21%, compared to the nine months ended September 30, 2021.
•Net interest margin increased 29 basis points to 3.67% in the third quarter of 2022 compared to 3.38% in the second quarter of 2022. Excluding the effects of PPP and accretion on acquired loans, net interest margin increased 33 basis points to 3.57% in the third quarter of 2022 from 3.24% in the second quarter of 2022. Securities yields increased 38 basis points to 2.36%, and loan yields increased 16 basis points to 4.45%. The effect on net interest margin of accretion of purchase discounts on acquired loans in the third quarter of 2022 was nine basis points. The cost of deposits increased three basis points to nine basis points for the third quarter of 2022 compared to six basis points in the prior quarter.
•Noninterest income totaled $16.1 million in the third quarter of 2022, a decrease of $0.9 million, or 5%, compared to the prior quarter, and a decrease of $2.9 million, or 15%, compared to the prior year quarter. For the nine months ended September 30, 2022, noninterest income was $48.4 million, a decrease of $3.6 million, or 7%, compared to the nine months ended September 30, 2021. Results for the third quarter of 2022 included the following:
•Service charges on deposits, which increased $0.1 million compared to the prior quarter and $1.0 million year over year, continue to benefit from growth in commercial deposit relationships.
•Despite the impact of market declines, the wealth management division has demonstrated continued success in building relationships, and during the third quarter of 2022, we transitioned $100.0 million in customer deposit outstandings to assets under management in our wealth division.
•Mortgage banking fees continue to be impacted by the overall slowdown attributed to significant increases in mortgage rates and low inventory levels, declining $0.5 million compared to the prior quarter.
•Other income increased by $0.2 million in the third quarter of 2022, compared to the prior quarter, with increases in SBIC investment income offset by lower loan-swap related income.
•The Company recognized $0.4 million in securities losses in the third quarter of 2022, compared to $0.3 million in the second quarter of 2022 and nominal losses in the third quarter of 2021. Losses in each period represent mark to market adjustment on the Company’s CRA-qualified mutual fund.
•The provision for credit losses was $4.7 million in the third quarter of 2022, compared to $0.8 million in the prior quarter. The increase reflects loan growth, along with changes in economic forecast factors, and losses that may result from the impact of Hurricane Ian on our borrowers.
•Noninterest expense was $61.4 million in the third quarter of 2022, an increase of $5.2 million, or 9%, compared to the prior quarter, and an increase of $6.1 million, or 11%, compared to the prior year quarter. Of the increase, $2.6 million was unique to the quarter, including the provision for unfunded commitments, recruiting, and project-related expenses that are not expected to recur. Noninterest expense was $176.4 million for the nine months ended September 30, 2022, compared to $147.2 million in the nine months ended September 30, 2021. Changes from the second quarter of 2022 included the following:
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.    
sbcflogoa.gif
•Salaries and wages increased $0.4 million to $28.4 million in the third quarter of 2022. During the third quarter the Company had the opportunity to invest in a team of well-seasoned C&I focused commercial bankers, treasury officers, and credit officers in North Florida, complementing our acquisition of Drummond and further expanding our reach in Ocala and Gainesville. Additionally, we expanded our commercial banking team in West and Central Florida, adding a significant number of bankers in these markets. Lastly, we hired numerous support and treasury roles supporting the Company’s successful strategy of banking middle market operating companies.
•Outsourced data processing costs decreased by $0.7 million in the third quarter of 2022, primarily attributed to merger related conversion costs incurred in the second quarter of 2022.
•Occupancy costs increased quarter over quarter as a result of the Company acquiring two branch properties that it had previously leased. The resulting write-offs of lease assets of $0.9 million impacted occupancy expense during the quarter, with ongoing expected annual savings of $0.3 million in net occupancy expense on these branches.
•Legal and professional fees increased by $0.8 million to $3.8 million in the third quarter of 2022, reflecting higher merger-related expenses and professional fees on a project that was completed.
•The prior quarter included a $1.0 million gain on sale of an OREO property. No OREO sale activity occurred in the third quarter.
•Other expenses increased by $2.2 million, primarily reflecting higher merger-related expenses and higher recruiting costs.
•A $1.0 million provision for credit losses on unfunded commitments reflects modeled results of changes in economic factors.
•Seacoast recorded $9.1 million of income tax expense in the third quarter of 2022, compared to $8.9 million in the second quarter of 2022 and $7.0 million in the third quarter of 2021. The second quarter of 2022 included a $1.0 million refund of Florida corporate income tax paid in prior periods. Tax benefits related to stock-based compensation totaled $0.2 million in the third quarter of 2022, $0.4 million in the second quarter of 2022, and $0.3 million in the third quarter of 2021.
•The ratio of net adjusted noninterest expense1 to average tangible assets was 2.16% in the third quarter of 2022, compared to 2.00% in the second quarter of 2022 and 1.95% in the third quarter of 2021. The increase in the ratio was primarily driven by a decline in total assets from the prior quarter.
•The efficiency ratio was 57.13% in the third quarter of 2022, compared to 56.22% in the second quarter of 2022 and 59.55% in the prior year quarter. The adjusted efficiency ratio1 was 53.28% in the third quarter of 2022, compared to 53.15% in the second quarter of 2022 and 51.50% in the prior year quarter. The Company continues to remain keenly focused on disciplined expense control.

Balance Sheet
•At September 30, 2022, the Company had total assets of $10.3 billion and total shareholders' equity of $1.3 billion. Book value per share was $20.95 on September 30, 2022, compared to $21.65 on June 30, 2022, and $22.12 on September 30, 2021. Tangible book value per share totaled $15.98 on September 30, 2022 compared to $16.66 on June 30, 2022 and $17.52 on September 30, 2021. A continued decline in the value of the available for sale securities portfolio driven by rising interest rates negatively impacted tangible book value per share by $2.93 when compared to December 31, 2021.
•Debt securities totaled $2.6 billion on September 30, 2022, an increase of $39.9 million, or 2%, compared to June 30, 2022. Purchases during the third quarter of 2022 totaled $199.6 million, consisting primarily of agency-issued securities at an average yield of 3.81%. The Company continues to take a prudent and disciplined approach to reinvest its excess liquidity.
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.    
sbcflogoa.gif
•Loans totaled $6.7 billion on September 30, 2022, an increase of $149.3 million compared to June 30, 2022. Excluding PPP, loans outstanding grew 10% on an annualized basis. The Company continues to exercise a disciplined approach to loan growth, carefully underwriting loans to strict underwriting guidelines.
•Loan originations were $554.7 million in the third quarter of 2022, a decrease of 24% compared to $734.0 million in the second quarter of 2022. The weighted average add-on rate for loan outstandings increased to 5.50% by the end of the third quarter.
•Commercial originations were $340.4 million during the third quarter of 2022, compared to $461.9 million in the second quarter of 2022, and $331.6 million in the third quarter of 2021.
•Consumer originations in the third quarter of 2022 were $128.6 million, compared to $126.5 million in the second quarter of 2022 and $66.4 million in the third quarter of 2021. The increase from the prior year is primarily the result of consumer lending teams that joined the Company in late 2021.
•Residential loans originated for sale in the secondary market totaled $16.4 million in the third quarter of 2022, compared to $42.7 million in the second quarter of 2022 and $95.1 million in the third quarter of 2021.
•Closed residential loans retained in the portfolio totaled $69.3 million in the third quarter of 2022, compared to $103.0 million in the second quarter of 2022, and $250.8 million in the third quarter of 2021.
•Pipelines (loans in underwriting and approval or approved and not yet closed) totaled $641.4 million on September 30, 2022, an increase of 3% from June 30, 2022 and an increase of 34% from September 30, 2021.
•Commercial pipelines were $530.4 million as of September 30, 2022, an increase of 11% from $476.7 million at June 30, 2022, and an increase of 44% from $368.9 million at September 30, 2021. The Company continues to focus on generating disciplined growth in full relationships, including credit facilities, deposit relationships, and wealth opportunities.
•Consumer pipelines were $43.7 million as of September 30, 2022, a decrease of 42% from $75.5 million at June 30, 2022, and an increase of 41% from $31.0 million at September 30, 2021. The decline in the consumer pipeline is the result of higher rates slowing consumer loan demand.
•Residential saleable pipelines were $6.6 million as of September 30, 2022, compared to $14.7 million at June 30, 2022, and $42.8 million at September 30, 2021. Retained residential pipelines were $60.7 million as of September 30, 2022, compared to $53.1 million at June 30, 2022, and $35.4 million at September 30, 2021.
•Total deposits were $8.8 billion as of September 30, 2022, a decrease of $423.5 million, or 5%, compared to June 30, 2022, and an increase of $431.2 million, or 5%, compared to September 30, 2021. The decline in deposits from the prior quarter included $100 million in transfers to wealth AUM, a $110 million decline in public funds moving to the state’s investment program, a $41 million decline in time deposits, and a $25 million decline in brokered deposits. The Company has continued to manage deposit pricing lower than competitors, and with an average loan-to-deposit ratio of 74% during the quarter, has maintained balance sheet flexibility supporting expansion of the net interest margin.
•At September 30, 2022, the percentage of total transaction account balances to overall deposit funding increased to 65%, which continues to support the Company’s ability to maintain a consistently low cost of deposits.
•Average noninterest demand account balances increased from the second quarter of 2022, overcoming a typical summer seasonal decline.
•The overall cost of deposits increased three basis points from the prior quarter.


1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.    
sbcflogoa.gif
Asset Quality
•Credit metrics remain strong with charge-offs, non-accruals, and criticized assets at historically low levels. The Company remains diligent in its monitoring of these metrics, as well as changes in the broader economic environment.
•Nonperforming loans decreased by $5.0 million to $21.5 million at September 30, 2022. Nonperforming loans to total loans outstanding were 0.32% at September 30, 2022, 0.40% at June 30, 2022, and 0.55% at September 30, 2021.
•Nonperforming assets to total assets declined to 0.23% at September 30, 2022, compared to 0.27% at June 30, 2022, and 0.47% at September 30, 2021.
•The ratio of allowance for credit losses to total loans was 1.42% at September 30, 2022, 1.39% at June 30, 2022, and 1.49% at September 30, 2021. Excluding PPP loans, the ratio of allowance for credit losses to total loans at September 30, 2022 was 1.43%, compared to 1.39% at June 30, 2022, and 1.54% at September 30, 2021.
•Net charge-offs of $0.1 million for the third quarter of 2022 compared to net recoveries of $0.1 million in the second quarter of 2022 and net charge-offs of $1.4 million in the third quarter of 2021. Net charge-offs for the four most recent quarters averaged 0.01%.
•Portfolio diversification, in terms of asset mix, industry, and loan type, has been a critical element of the Company's lending strategy. Exposure across industries and collateral types is broadly distributed. Seacoast's average commercial loan size is $589 thousand, reflecting an ability to maintain granularity within the overall loan portfolio.
•Construction and land development and commercial real estate loans remain well below regulatory guidance at 30% and 191% of total bank-level risk-based capital, respectively, compared to 29% and 192% respectively, at June 30, 2022. On a consolidated basis, construction and land development and commercial real estate loans represent 28% and 175%, respectively, of total consolidated risk-based capital.
Capital and Liquidity
•The Company continues to operate with a fortress balance sheet, with a tier 1 capital ratio at September 30, 2022, of 16.5% compared to 16.8% at June 30, 2022, and 17.7% at September 30, 2021. The total capital ratio was 17.5% and the tier 1 leverage ratio was 12.1% at September 30, 2022.
•Cash and cash equivalents at September 30, 2022 totaled $218.6 million, with decreases from the prior quarter resulting from loan growth, more modest deployment of liquidity in investments in the securities portfolio, and deposit outflows.
•Tangible common equity to tangible assets was 9.79% at September 30, 2022, compared to 9.74% at June 30, 2022, and 10.62% at September 30, 2021. Declines in the value of available for sale securities due to rising interest rates in 2022 negatively impacted equity year to date by $180.2 million.

•At September 30, 2022, the Company had available unsecured lines of credit of $165.0 million and lines of credit under lendable collateral value of $2.1 billion. Additionally, $2.1 billion of debt securities and $959.3 million of residential and commercial real estate loans are available as collateral for potential borrowings.
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.    
sbcflogoa.gif
FINANCIAL HIGHLIGHTS
(Amounts in thousands except per share data)(Unaudited)
Quarterly Trends
3Q'222Q'221Q'224Q'213Q'21
Selected balance sheet data:
Total assets$10,345,235 $10,811,704 $10,904,817 $9,681,433 $9,893,498 
Gross loans6,690,845 6,541,548 6,451,217 5,925,029 5,905,884 
Total deposits8,765,414 9,188,953 9,243,768 8,067,589 8,334,172 
Performance measures:
Net income$29,237 $32,755 $20,588 $36,330 $22,944 
Net interest margin3.67 %3.38 %3.25 %3.16 %3.22 %
Pre-tax pre-provision earnings1
43,143 42,580 33,095 40,855 35,215 
Average diluted shares outstanding61,961 61,923 61,704 59,016 57,645 
Diluted earnings per share (EPS)$0.47 $0.53 $0.33 $0.62 $0.40 
Return on (annualized):
Average assets (ROA)1.10 %1.21 %0.79 %1.43 %0.93 %
Average tangible assets (ROTA)2
1.17 1.29 0.85 1.51 1.00 
Average tangible common equity (ROTCE)2
11.53 13.01 8.02 14.29 9.56 
Tangible common equity to tangible assets2
9.79 9.74 9.90 11.09 10.62 
Tangible book value per share2
$15.98 $16.66 $17.12 $17.84 $17.52 
Efficiency ratio57.13 %56.22 %62.33 %53.70 %59.55 %
Adjusted operating measures1:
Adjusted net income$32,837 $36,327 $27,056 $36,854 $29,350 
Adjusted pre-tax pre-provision earnings$48,989 $46,397 $41,737 $42,258 $43,901 
Adjusted diluted EPS0.53 0.59 0.44 0.62 0.51 
Adjusted ROTA2
1.27 %1.38 %1.06 %1.49 %1.23 %
Adjusted ROTCE2
12.48 13.97 10.01 14.11 11.72 
Adjusted efficiency ratio53.28 53.15 54.86 53.43 51.50 
Net adjusted noninterest expense as a
percent of average tangible assets2
2.16 2.00 1.99 1.96 1.95 
Other data:
Market capitalization3
$1,858,429 $2,028,996 $2,144,586 $2,070,465 $1,972,784 
Full-time equivalent employees1,156 1,095 1,066 989 995 
Number of ATMs79 79 79 75 72 
Full-service banking offices58 58 58 54 52 
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP.
2The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.
3Common shares outstanding multiplied by closing bid price on last day of each period.


sbcflogoa.gif
Third Quarter 2022 Strategic Highlights

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

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

Scaling and Evolving Our Culture
•Seacoast has been recognized by the Human Rights Foundation for the third consecutive year, earning a perfect score for Workplace Equality in the 2022 Corporate Equality index.
•For the second year in a row, Seacoast is thrilled to be named one of the Orlando Business Journal's 2022 Best Places to Work, which highlights our commitment to employees’ well-being, as well as our numerous diversity and inclusion initiatives.
    
sbcflogoa.gif
OTHER INFORMATION
Conference Call Information
Seacoast will host a conference call on October 28, 2022 at 10:00 a.m. (Eastern Time) to discuss the third quarter 2022 earnings results and business trends. Investors may call in (toll-free) by dialing (866) 374-5140 (passcode: 6944 8197#; host: Charles Shaffer). Charts will be used during the conference call and may be accessed at Seacoast's website at www.SeacoastBanking.com     by selecting "Presentations" under the heading "News/Events." A replay of the call will be available for one month, beginning late afternoon on October 28, 2022, and can be accessed via a link at www.SeacoastBanking.com under the heading “Corporate Information,” using the passcode EV00136823.

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

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

Additional Information

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

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

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


Cautionary Notice Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, cost savings, enhanced revenues, economic and seasonal conditions in the Company’s markets, and improvements to reported earnings that may be realized from cost controls, tax law changes, new initiatives and for integration of banks that the Company has acquired, including Apollo Bancshares, Inc. and Drummond Banking Company, or expects to acquire, including Professional Holding



sbcflogoa.gif
Corp. as well as statements with respect to Seacoast's objectives, strategic plans, expectations and intentions and other statements that are not historical facts, any of which may be impacted by the COVID-19 pandemic and any variants thereof and related effects on the U.S. economy. Actual results may differ from those set forth in the forward-looking statements.

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

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



sbcflogoa.gif
future taxable income from the Company’s operations and tax planning strategies are less than currently estimated and sales of capital stock could trigger a reduction in the amount of net operating loss carryforwards that the Company may be able to utilize for income tax purposes; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, non-bank financial technology providers, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in the Company’s market areas and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the Internet; the failure of assumptions underlying the establishment of reserves for possible credit losses.

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

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



 

FINANCIAL HIGHLIGHTS(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Quarterly TrendsNine Months Ended
(Amounts in thousands, except ratios and per share data)3Q'222Q'221Q'224Q'213Q'213Q'223Q'21
Summary of Earnings
Net income$29,237 $32,755 $20,588 $36,330 $22,944 $82,580 $88,073 
Adjusted net income1
32,837 36,327 27,056 36,854 29,350 96,220 98,098 
Net interest income2
88,399 81,764 76,639 72,412 71,455 246,802 204,129 
Net interest margin2,3
3.67 %3.38 %3.25 %3.16 %3.22 %3.44 %3.32 %
Pre-tax pre-provision earnings1
43,143 42,580 33,095 40,855 35,215 118,818 108,978 
Adjusted pre-tax pre-provision earnings1
48,989 46,397 41,737 42,258 43,901 137,123 122,303 
Performance Ratios
Return on average assets-GAAP basis3
1.10 %1.21 %0.79 %1.43 %0.93 %1.03 %1.29 %
Return on average tangible assets-GAAP basis3,4
1.17 1.29 0.85 1.51 1.00 1.11 1.37 
Adjusted return on average tangible assets1,3,4
1.27 1.38 1.06 1.49 1.23 1.24 1.48 
Net adjusted noninterest expense to average tangible assets1,3,4
2.16 2.00 1.99 1.96 1.95 2.05 2.03 
Return on average shareholders' equity-GAAP basis3
8.60 9.73 5.96 11.06 7.29 8.08 9.93 
Return on average tangible common equity-GAAP basis3,4
11.53 13.01 8.02 14.29 9.56 10.82 12.89 
Adjusted return on average tangible common equity1,3,4
12.48 13.97 10.01 14.11 11.72 12.13 13.91 
Efficiency ratio5
57.13 56.22 62.33 53.70 59.55 58.45 55.99 
Adjusted efficiency ratio1
53.28 53.15 54.86 53.43 51.50 53.73 52.29 
Noninterest income to total revenue (excluding securities gains/losses)15.72 17.45 17.14 20.89 21.09 16.74 20.40 
Tangible common equity to tangible assets4
9.79 9.74 9.89 11.09 10.62 9.79 10.62 
Average loan-to-deposit ratio73.90 70.60 71.25 70.29 69.97 71.92 74.86 
End of period loan-to-deposit ratio76.35 71.34 70.01 73.84 71.46 76.35 71.46 
Per Share Data
Net income diluted-GAAP basis$0.47 $0.53 $0.33 $0.62 $0.40 $1.33 $1.56 
Net income basic-GAAP basis0.48 0.53 0.34 0.62 0.40 1.35 1.57 
Adjusted earnings1
0.53 0.59 0.44 0.62 0.51 1.56 1.74 
Book value per share common20.95 21.65 22.15 22.40 22.12 20.95 22.12 
Tangible book value per share15.98 16.66 17.12 17.84 17.52 15.98 17.52 
Cash dividends declared0.17 0.17 0.13 0.13 0.13 0.47 0.26 
1Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP.
2Calculated on a fully taxable equivalent basis using amortized cost.
3These ratios are stated on an annualized basis and are not necessarily indicative of future periods.
4The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.
5Defined as noninterest expense less amortization of intangibles and gains, losses, and expenses on foreclosed properties divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains and losses).



CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Quarterly TrendsNine Months Ended
(Amounts in thousands, except per share data)3Q'222Q'221Q'224Q'213Q'213Q'223Q'21
Interest on securities:
Taxable$15,653 $12,387 $10,041 $8,574 $7,775 $38,081 $20,632 
Nontaxable138 138 140 139 143 416 438 
Fees on PPP loans295 676 1,373 3,011 5,218 2,344 14,485 
Interest on PPP loans25 65 150 341 699 240 3,446 
Interest and fees on loans - excluding PPP loans73,650 68,566 65,595 61,049 58,507 207,811 169,139 
Interest on federal funds sold and other investments1,643 1,917 933 828 867 4,493 2,162 
Total Interest Income91,404 83,749 78,232 73,942 73,209 253,385 210,302 
Interest on deposits1,623 994 767 711 849 3,384 2,894 
Interest on time certificates380 436 468 494 583 1,284 2,294 
Interest on borrowed money1,117 672 475 448 453 2,264 1,378 
Total Interest Expense3,120 2,102 1,710 1,653 1,885 6,932 6,566 
Net Interest Income88,284 81,647 76,522 72,289 71,324 246,453 203,736 
Provision for credit losses4,676 822 6,556 (3,942)5,091 12,054 (5,479)
Net Interest Income After Provision for Credit Losses83,608 80,825 69,966 76,231 66,233 234,399 209,215 
Noninterest income:
Service charges on deposit accounts3,504 3,408 2,801 2,606 2,495 9,713 7,171 
Interchange income4,138 4,255 4,128 4,135 4,131 12,521 12,096 
Wealth management income2,732 2,774 2,659 2,356 2,562 8,165 7,272 
Mortgage banking fees434 932 1,686 2,030 2,550 3,052 9,752 
Marine finance fees209 312 191 147 152 712 518 
SBA gains108 473 156 200 812 737 1,331 
BOLI income1,363 1,349 1,334 1,295 1,128 4,046 2,859 
Other3,977 3,761 2,870 6,316 5,228 10,608 11,221 
16,465 17,264 15,825 19,085 19,058 49,554 52,220 
Securities losses, net(362)(300)(452)(379)(30)(1,114)(199)
Total Noninterest Income16,103 16,964 15,373 18,706 19,028 48,440 52,021 
Noninterest expenses:
Salaries and wages28,420 28,056 28,219 25,005 27,919 84,695 72,278 
Employee benefits4,074 4,151 5,501 4,763 4,177 13,726 13,110 
Outsourced data processing costs5,393 6,043 6,156 5,165 5,610 17,592 14,754 
Telephone / data lines973 908 733 790 810 2,614 2,433 
Occupancy5,046 4,050 3,986 3,500 3,541 13,082 10,640 
Furniture and equipment1,462 1,588 1,426 1,403 1,567 4,476 3,987 
Marketing1,461 1,882 1,171 1,060 1,353 4,514 3,523 
Legal and professional fees3,794 2,946 4,789 2,461 4,151 11,529 8,915 
FDIC assessments760 699 789 713 651 2,248 1,692 
Amortization of intangibles1,446 1,446 1,446 1,304 1,306 4,338 3,729 
Foreclosed property expense and net (gain) loss on sale9 (968)(164)(175)66 (1,123)(89)
Provision for credit losses on unfunded commitments1,015 — 142 — 133 1,157 133 
Other7,506 5,347 4,723 4,274 3,984 17,576 12,067 
Total Noninterest Expense61,359 56,148 58,917 50,263 55,268 176,424 147,172 
Income Before Income Taxes38,352 41,641 26,422 44,674 29,993 106,415 114,064 
Income taxes9,115 8,886 5,834 8,344 7,049 23,835 25,991 
Net Income$29,237 $32,755 $20,588 $36,330 $22,944 $82,580 $88,073 
Per share of common stock:
Net income diluted$0.47 $0.53 $0.33 $0.62 $0.40 $1.33 $1.56 
Net income basic0.48 0.53 0.34 0.62 0.40 1.35 1.57 
Cash dividends declared0.17 0.17 0.13 0.13 0.13 0.47 0.26 
Average diluted shares outstanding61,961 61,923 61,704 59,016 57,645 61,867 56,441 
Average basic shares outstanding61,442 61,409 61,127 58,462 57,148 61,327 55,954 


CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
September 30,June 30,March 31,December 31,September 30,
(Amounts in thousands)20222022202220212021
Assets
Cash and due from banks$176,463 $363,343 $351,128 $238,750 $199,460 
Interest bearing deposits with other banks42,152 538,025 871,387 498,979 1,028,235 
Total Cash and Cash Equivalents218,615 901,368 1,222,515 737,729 1,227,695 
Time deposits with other banks4,481 4,730 5,975 — 750 
Debt Securities:
Available for sale (at fair value)1,860,734 1,800,791 1,706,619 1,644,319 1,546,155 
Held to maturity (at amortized cost)774,706 794,785 747,004 638,640 526,502 
Total Debt Securities2,635,440 2,595,576 2,453,623 2,282,959 2,072,657 
Loans held for sale1,620 14,205 20,615 31,791 49,597 
Loans6,690,845 6,541,548 6,451,217 5,925,029 5,905,884 
Less: Allowance for credit losses(95,329)(90,769)(89,838)(83,315)(87,823)
Net Loans6,595,516 6,450,779 6,361,379 5,841,714 5,818,061 
Bank premises and equipment, net81,648 74,784 74,617 72,404 71,250 
Other real estate owned2,419 2,419 11,567 13,618 13,628 
Goodwill286,606 286,606 286,606 252,154 252,154 
Other intangible assets, net18,583 20,062 21,549 14,845 16,153 
Bank owned life insurance209,087 207,724 206,375 205,041 193,747 
Net deferred tax assets83,139 60,080 47,222 27,321 24,187 
Other assets208,081 193,371 192,774 201,857 153,619 
Total Assets$10,345,235 $10,811,704 $10,904,817 $9,681,433 $9,893,498 
Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest demand$3,529,489 $3,593,201 $3,522,700 $3,075,534 $3,086,466 
Interest-bearing demand2,170,251 2,269,148 2,253,562 1,890,212 1,845,165 
Savings938,081 946,738 937,839 895,019 834,309 
Money market1,700,737 1,911,847 1,999,027 1,651,881 1,951,639 
Other time certificates312,840 350,571 397,491 404,601 437,973 
Brokered time certificates— — — — 20,000 
Time certificates of more than $250,000114,016 117,448 133,149 150,342 158,620 
Total Deposits8,765,414 9,188,953 9,243,768 8,067,589 8,334,172 
Securities sold under agreements to repurchase94,191 110,578 120,922 121,565 105,548 
Subordinated debt71,857 71,786 71,716 71,646 71,576 
Other liabilities125,971 110,812 112,126 109,897 91,682 
Total Liabilities9,057,433 9,482,129 9,548,532 8,370,697 8,602,978 
Shareholders' Equity
Common stock6,148 6,141 6,124 5,850 5,835 
Additional paid in capital1,068,241 1,065,167 1,062,462 963,851 959,644 
Retained earnings412,166 393,431 371,192 358,598 329,918 
Treasury stock(11,539)(11,632)(10,459)(10,569)(10,146)
1,475,016 1,453,107 1,429,319 1,317,730 1,285,251 
Accumulated other comprehensive (loss) income, net(187,214)(123,532)(73,034)(6,994)5,269 
Total Shareholders' Equity1,287,802 1,329,575 1,356,285 1,310,736 1,290,520 
Total Liabilities & Shareholders' Equity $10,345,235 $10,811,704 $10,904,817 $9,681,433 $9,893,498 
Common shares outstanding61,476 61,410 61,239 58,504 58,349 



CONSOLIDATED QUARTERLY FINANCIAL DATA(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
(Amounts in thousands)3Q'222Q'221Q'224Q'213Q'21
Credit Analysis
Net charge-offs (recoveries) - non-acquired loans$129 $(75)$72 $541 $198 
Net charge-offs (recoveries) - acquired loans(26)(49)7 29 1,234 
Total Net Charge-offs (Recoveries) 103 (124)79 570 1,432 
Net charge-offs (recoveries) to average loans - non-acquired loans0.01 %— %— %0.04 %0.01 %
Net charge-offs (recoveries) to average loans - acquired loans— — — — 0.09 
Total Net Charge-offs (Recoveries) to Average Loans0.01 — — 0.04 0.10 
Allowance for credit losses - non-acquired loans$82,980 $70,215 $67,261 $64,710 $64,740 
Allowance for credit losses - acquired loans12,349 20,554 22,577 18,605 23,083 
Total Allowance for Credit Losses$95,329 $90,769 $89,838 $83,315 $87,823 
Non-acquired loans at end of period$5,651,741 $5,389,405 $5,169,973 $4,860,171 $4,608,801 
Acquired loans at end of period1,033,810 1,134,940 1,241,988 973,751 1,106,481 
Paycheck Protection Program loans at end of period5,294 17,203 39,256 91,107 190,602 
Total Loans$6,690,845 $6,541,548 $6,451,217 $5,925,029 $5,905,884 
Non-acquired loans allowance for credit losses to non-acquired loans at end of period1.47 %1.30 %1.30 %1.33 %1.40 %
Total allowance for credit losses to total loans at end of period1.42 1.39 1.39 1.41 1.49 
Total allowance for credit losses to total loans, excluding PPP loans1.43 1.39 1.40 1.43 1.54 
Purchase discount on acquired loans at end of period1.81 1.84 1.89 2.27 2.27 
End of Period
Nonperforming loans$21,464 $26,442 $26,209 $30,598 $32,612 
Other real estate owned109 109 9,256 12,223 11,843 
Properties previously used in bank operations included in other real estate owned2,310 2,310 2,310 1,395 1,785 
Total Nonperforming Assets$23,883 $28,861 $37,775 $44,216 $46,240 
Accruing troubled debt restructures (TDRs)$4,149 $4,022 $4,454 $3,917 $4,047 
Nonperforming Loans to Loans at End of Period0.32 %0.40 %0.41 %0.52 %0.55 %
Nonperforming Assets to Total Assets at End of Period0.23 0.27 0.35 0.46 0.47 
September 30,June 30,March 31,December 31,September 30,
Loans20222022202220212021
Construction and land development$361,913 $350,025 $259,421 $230,824 $227,459 
Commercial real estate - owner occupied1,253,459 1,254,343 1,284,515 1,197,774 1,201,336 
Commercial real estate - non-owner occupied 1
2,107,614 1,972,540 1,966,150 1,736,439 1,673,587 
Residential real estate 1
1,599,765 1,647,465 1,599,645 1,425,354 1,467,329 
Commercial and financial1,182,384 1,124,771 1,132,506 1,069,356 982,552 
Consumer180,416 175,201 169,724 174,175 163,019 
Paycheck Protection Program5,294 17,203 39,256 91,107 190,602 
Total Loans$6,690,845 $6,541,548 $6,451,217 $5,925,029 $5,905,884 
1 In 3Q'22, $100 million in loans to commercial borrowers collateralized by residential properties were reclassified from "Residential real estate" to "Commercial real estate - non-owner occupied."



AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1
(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
3Q'222Q'223Q'21
AverageYield/AverageYield/AverageYield/
(Amounts in thousands)BalanceInterestRateBalanceInterestRateBalanceInterestRate
Assets
Earning assets:
Securities:
Taxable$2,665,104 $15,653 2.35 %$2,517,879 $12,387 1.97 %$1,971,520 $7,775 1.58 %
Nontaxable22,064 174 3.15 22,443 175 3.12 25,311 181 2.86 
Total Securities2,687,168 15,827 2.36 2,540,322 12,562 1.98 1,996,831 7,956 1.59 
Federal funds sold203,815 1,062 2.07 644,144 1,281 0.80 1,056,691 406 0.15 
Other investments45,193 581 5.10 46,257 636 5.51 35,306 461 5.18 
Loans excluding PPP loans6,597,828 73,730 4.43 6,454,444 68,647 4.27 5,422,350 58,600 4.29 
PPP loans10,114 320 12.54 26,322 741 11.29 281,724 5,917 8.33 
Total Loans6,607,942 74,050 4.45 6,480,766 69,388 4.29 5,704,074 64,517 4.49 
Total Earning Assets9,544,118 91,520 3.80 9,711,489 83,867 3.46 8,792,902 73,340 3.31 
Allowance for credit losses(91,348)(90,242)(88,412)
Cash and due from banks331,947 389,695 386,781 
Premises and equipment76,357 74,614 70,667 
Intangible assets305,935 307,411 254,980 
Bank owned life insurance208,193 206,839 164,879 
Other assets210,136 240,712 171,937 
Total Assets$10,585,338 $10,840,518 $9,753,734 
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand$2,215,899 $757 0.14 %$2,262,408 $293 0.05 %$1,891,092 $219 0.05 %
Savings944,128 65 0.03 962,264 64 0.03 842,018 65 0.03 
Money market1,806,014 802 0.18 1,938,421 637 0.13 1,860,386 565 0.12 
Time deposits445,840 380 0.34 496,186 436 0.35 572,661 583 0.40 
Securities sold under agreements to repurchase111,902 309 1.10 120,437 94 0.31 120,507 35 0.12 
Other borrowings71,810 808 4.46 71,740 579 3.24 71,530 418 2.32 
Total Interest-Bearing Liabilities5,595,593 3,121 0.22 5,851,456 2,103 0.14 5,358,194 1,885 0.14 
Noninterest demand3,529,844 3,520,700 2,985,582 
Other liabilities110,426 117,794 161,411 
Total Liabilities9,235,863 9,489,950 8,505,187 
Shareholders' equity1,349,475 1,350,568 1,248,547 
Total Liabilities & Equity$10,585,338 $10,840,518 $9,753,734 
Cost of deposits0.09 %0.06 %0.07 %
Interest expense as a % of earning assets0.13 %0.09 %0.09 %
Net interest income as a % of earning assets$88,399 3.67 %$81,764 3.38 %$71,455 3.22 %
1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.
Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.



AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1
(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Nine Months Ended September 30, 2022Nine Months Ended September 30, 2021
AverageYield/AverageYield/
(Amounts in thousands, except ratios)BalanceInterestRateBalanceInterestRate
Assets
Earning assets:
Securities:
Taxable$2,530,742 $38,081 2.01 %$1,718,671 $20,632 1.60 %
Nontaxable22,842 526 3.07 25,606 554 2.88 
Total Securities2,553,584 38,607 2.02 1,744,277 21,186 1.62 
Federal funds sold526,890 2,693 0.68 725,013 706 0.13 
Other investments45,483 1,800 5.29 75,826 1,456 2.57 
Loans excluding PPP loans6,444,253 208,052 4.32 5,222,629 169,417 4.34 
PPP loans32,597 2,584 10.60 464,397 17,930 5.16 
Total Loans6,476,850 210,636 4.35 5,687,026 187,347 4.40 
Total Earning Assets9,602,807 253,736 3.53 8,232,142 210,695 3.42 
Allowance for credit losses(89,700)(88,717)
Cash and due from banks362,369 323,693 
Premises and equipment75,617 71,644 
Intangible assets305,895 242,820 
Bank owned life insurance206,854 143,601 
Other assets220,790 167,775 
Total Assets$10,684,632 $9,092,958 
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand$2,192,331 $1,240 0.08 %$1,728,985 $712 0.06 %
Savings943,982 194 0.03 785,447 320 0.05 
Money market1,906,407 1,951 0.14 1,736,519 1,862 0.14 
Time deposits500,482 1,284 0.34 605,269 2,294 0.51 
Securities sold under agreements to repurchase116,805 442 0.51 116,304 112 0.13 
Other borrowings71,741 1,823 3.40 71,460 1,266 2.37 
Total Interest-Bearing Liabilities5,731,751 6,934 0.16 5,043,984 6,566 0.17 
Noninterest demand3,462,931 2,741,115 
Other liabilities123,279 122,329 
Total Liabilities9,317,961 7,907,428 
Shareholders' equity1,366,672 1,185,530 
Total Liabilities & Equity$10,684,632 $9,092,958 
Cost of deposits0.07 %0.09 %
Interest expense as a % of earning assets0.10 %0.11 %
Net interest income as a % of earning assets$246,802 3.44 %$204,129 3.32 %
1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.
Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.


CONSOLIDATED QUARTERLY FINANCIAL DATA(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
September 30,June 30,March 31,December 31,September 30,
(Amounts in thousands)20222022202220212021
Customer Relationship Funding
Noninterest demand
Commercial$2,827,591 $2,945,445 $2,939,595 $2,477,111 $2,535,922 
Retail447,848 464,214 458,809 458,626 416,779 
Public funds210,662 143,075 86,419 107,523 84,337 
Other43,388 40,467 37,877 32,274 49,428 
Total Noninterest Demand3,529,489 3,593,201 3,522,700 3,075,534 3,086,466 
Interest-bearing demand
Commercial759,286 769,948 610,109 497,466 554,366 
Retail1,199,112 1,207,698 1,392,490 1,144,635 1,069,668 
Brokered81,799 — — — — 
Public funds130,054 291,502 250,963 248,111 221,131 
Total Interest-Bearing Demand2,170,251 2,269,148 2,253,562 1,890,212 1,845,165 
Total transaction accounts
Commercial3,586,877 3,715,393 3,549,704 2,974,577 3,090,288 
Retail1,646,960 1,671,912 1,851,299 1,603,261 1,486,447 
Public funds340,716 434,577 337,382 355,634 305,468 
Other43,388 40,467 37,877 32,274 49,428 
Total Transaction Accounts5,617,941 5,862,349 5,776,262 4,965,746 4,931,631 
Savings938,081 946,738 937,839 895,019 834,309 
Money market
Commercial788,009 819,452 856,117 732,639 827,901 
Retail857,914 914,918 931,702 840,054 834,628 
Brokered— 106,823 126,168 8,007 196,548 
Public funds54,814 70,654 85,040 71,181 92,562 
Total Money Market1,700,737 1,911,847 1,999,027 1,651,881 1,951,639 
Brokered time certificates— — — — 20,000 
Other time certificates426,856 468,019 530,640 554,943 596,593 
426,856 468,019 530,640 554,943 616,593 
Total Deposits$8,683,615 $9,188,953 $9,243,768 $8,067,589 $8,334,172 
Customer sweep accounts$94,191 $110,578 $120,922 $121,565 $105,548 





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



GAAP TO NON-GAAP RECONCILIATION(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Quarterly TrendsNine Months Ended
(Amounts in thousands, except per share data)3Q'222Q'221Q'224Q'213Q'213Q'223Q'21
Net Income$29,237 $32,755 $20,588 $36,330 $22,944 $82,580 $88,073 
Total noninterest income16,103 16,964 15,373 18,706 19,028 48,440 52,021 
Securities losses (gains), net362 300 452 379 30 1,114 199 
Gain on sale of domain name (included in other income)— — — (755)— — — 
Total Adjustments to Noninterest Income362 300 452 (376)30 1,114 199 
Total Adjusted Noninterest Income16,465 17,264 15,825 18,330 19,058 49,554 52,220 
Total noninterest expense61,359 56,148 58,917 50,263 55,268 176,424 147,172 
Merger related charges(2,054)(3,039)(6,692)(482)(6,281)(11,785)(7,371)
Amortization of intangibles(1,446)(1,446)(1,446)(1,304)(1,306)(4,338)(3,729)
Branch reductions and other expense initiatives(960)— (74)(168)(870)(1,034)(1,982)
Total Adjustments to Noninterest Expense(4,460)(4,485)(8,212)(1,954)(8,457)(17,157)(13,082)
Total Adjusted Noninterest Expense56,899 51,663 50,705 48,309 46,811 159,267 134,090 
Income Taxes9,115 8,886 5,834 8,344 7,049 23,835 25,991 
Tax effect of adjustments 1,222 1,213 2,196 280 2,081 4,631 3,256 
Effect of change in corporate tax rate on deferred tax assets— — — 774 — — — 
Total Adjustments to Income Taxes1,222 1,213 2,196 1,054 2,081 4,631 3,256 
Adjusted Income Taxes10,337 10,099 8,030 9,398 9,130 28,466 29,247 
Adjusted Net Income$32,837 $36,327 $27,056 $36,854 $29,350 $96,220 $98,098 
Earnings per diluted share, as reported$0.47 $0.53 $0.33 $0.62 $0.40 $1.33 $1.56 
Adjusted Earnings per Diluted Share 0.53 0.59 0.44 0.62 0.51 1.56 1.74 
Average diluted shares outstanding 61,961 61,923 61,704 59,016 57,645 61,867 56,441 
Adjusted Noninterest Expense$56,899 $51,663 $50,705 $48,309 $46,811 $159,267 $134,090 
Provision for credit losses on unfunded commitments(1,015)— (142)— (133)(1,157)(133)
Foreclosed property expense and net gain / (loss) on sale (9)968 164 175 (66)1,123 89 
Net Adjusted Noninterest Expense$55,875 $52,631 $50,727 $48,484 $46,612 $159,233 $134,046 
Revenue$104,387 $98,611 $91,895 $90,995 $90,352 $294,893 $255,757 
Total Adjustments to Revenue362 300 452 (376)30 1,114 199 
Impact of FTE adjustment115 117 117 123 131 349 393 
Adjusted Revenue on a fully taxable equivalent basis$104,864 $99,028 $92,464 $90,742 $90,513 $296,356 $256,349 
Adjusted Efficiency Ratio53.28 %53.15 %54.86 %53.43 %51.50 %53.73 %52.29 %
Net Interest Income$88,284 $81,647 $76,522 $72,289 $71,324 $246,453 $203,736 
Impact of FTE adjustment115 117 117 123 131 349 393 
Net Interest Income including FTE adjustment$88,399 $81,764 $76,639 $72,412 $71,455 $246,802 $204,129 
Total noninterest income16,103 16,964 15,373 18,706 19,028 48,440 52,021 
Total noninterest expense61,359 56,148 58,917 50,263 55,268 176,424 147,172 
Pre-Tax Pre-Provision Earnings$43,143 $42,580 $33,095 $40,855 $35,215 $118,818 $108,978 
Total Adjustments to Noninterest Income362 300 452 (376)30 1,114 199 
Total Adjustments to Noninterest Expense(5,484)(3,517)(8,190)(1,779)(8,656)(17,191)(13,126)
Adjusted Pre-Tax Pre-Provision Earnings$48,989 $46,397 $41,737 $42,258 $43,901 $137,123 $122,303 
Average Assets$10,585,338 $10,840,518 $10,628,516 $10,061,382 $9,753,734 $10,684,632 $9,092,958 
Less average goodwill and intangible assets(305,935)(307,411)(304,321)(267,692)(254,980)(305,895)(242,820)
Average Tangible Assets$10,279,403 $10,533,107 $10,324,195 $9,793,690 $9,498,754 $10,378,737 $8,850,138 
Return on Average Assets (ROA)1.10 %1.21 %0.79 %1.43 %0.93 %1.03 %1.29 %
Impact of removing average intangible assets and related amortization 0.07 0.08 0.06 0.08 0.07 0.08 0.08 
Return on Average Tangible Assets (ROTA)1.17 1.29 0.85 1.51 1.00 1.11 1.37 


GAAP TO NON-GAAP RECONCILIATION(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Quarterly TrendsNine Months Ended
(Amounts in thousands, except per share data)3Q'222Q'221Q'224Q'213Q'213Q'223Q'21
Impact of other adjustments for Adjusted Net Income 0.10 0.09 0.21 (0.02)0.23 0.13 0.11 
Adjusted Return on Average Tangible Assets1.27 1.38 1.06 1.49 1.23 1.24 1.48 
Average Shareholders' Equity$1,349,475 $1,350,568 $1,400,535 $1,303,686 $1,248,547 $1,366,672 $1,185,530 
Less average goodwill and intangible assets(305,935)(307,411)(304,321)(267,692)(254,980)(305,895)(242,820)
Average Tangible Equity$1,043,540 $1,043,157 $1,096,214 $1,035,994 $993,567 $1,060,777 $942,710 
Return on Average Shareholders' Equity 8.60 %9.73 %5.96 %11.06 %7.29 %8.08 %9.93 %
Impact of removing average intangible assets and related amortization 2.93 3.28 2.06 3.23 2.27 2.74 2.96 
Return on Average Tangible Common Equity (ROTCE)11.53 13.01 8.02 14.29 9.56 10.82 12.89 
Impact of other adjustments for Adjusted Net Income 0.95 0.96 1.99 (0.18)2.16 1.31 1.02 
Adjusted Return on Average Tangible Common Equity 12.48 13.97 10.01 14.11 11.72 12.13 13.91 
Loan interest income1
$74,050 $69,388 $67,198 $64,487 $64,517 $210,636 $187,347 
Accretion on acquired loans(2,242)(2,720)(3,717)(3,520)(3,483)(8,679)(9,237)
Interest and fees on PPP loans(320)(741)(1,523)(3,352)(5,917)(2,584)(17,930)
Loan interest income excluding PPP and accretion on acquired loans$71,488 $65,927 $61,958 $57,615 $55,117 $199,373 $160,180 
Yield on loans1
4.45 4.29 4.30 4.31 4.49 4.35 4.40 
Impact of accretion on acquired loans (0.14)(0.16)(0.24)(0.24)(0.24)(0.18)(0.21)
Impact of PPP loans(0.01)(0.03)(0.06)(0.13)(0.22)(0.03)(0.09)
Yield on loans excluding PPP and accretion on acquired loans4.30 %4.10 %4.00 %3.94 %4.03 %4.14 %4.10 %
Net Interest Income1
$88,399 $81,764 $76,639 $72,412 $71,455 $246,802 $204,129 
Accretion on acquired loans(2,242)(2,720)(3,717)(3,520)(3,483)(8,679)(9,237)
Interest and fees on PPP loans(320)(741)(1,523)(3,352)(5,917)(2,584)(17,930)
Net interest income excluding PPP and accretion on acquired loans$85,837 $78,303 $71,399 $65,540 $62,055 $235,539 $176,962 
Net Interest Margin3.67 3.38 3.25 3.16 3.22 3.44 3.32 
Impact of accretion on acquired loans (0.09)(0.12)(0.15)(0.15)(0.15)(0.12)(0.15)
Impact of PPP loans(0.01)(0.02)(0.05)(0.10)(0.18)(0.03)(0.12)
Net interest margin excluding PPP and accretion on acquired loans3.57 %3.24 %3.05 %2.91 %2.89 %3.29 %3.05 %
Security interest income1
$15,827 $12,562 $10,218 $8,750 $7,956 $38,607 $21,186 
Tax equivalent adjustment on securities(35)(36)(37)(37)(38)(108)(116)
Security interest income excluding tax equivalent adjustment$15,792 $12,526 $10,181 $8,713 $7,918 $38,499 $21,070 
Loan interest income1
$74,050 $69,388 $67,198 $64,487 $64,517 $210,636 $187,347 
Tax equivalent adjustment on loans(80)(81)(80)(86)(93)(241)(277)
Loan interest income excluding tax equivalent adjustment$73,970 $69,307 $67,118 $64,401 $64,424 $210,395 $187,070 
Net Interest Income1
$88,399 $81,764 $76,639 $72,412 $71,455 $246,802 $204,129 
Tax equivalent adjustment on securities(35)(36)(37)(37)(38)(108)(116)
Tax equivalent adjustment on loans(80)(81)(80)(86)(93)(241)(277)
Net interest income excluding tax equivalent adjustment$88,284 $81,647 $76,522 $72,289 $71,324 $246,453 $203,736 
1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.