EX-99.1 2 a2q2023earningsrelease.htm EX-99.1 2Q2023 Earnings Release
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SEACOAST REPORTS SECOND QUARTER 2023 RESULTS
Well-Positioned Balance Sheet with Strong Capital and Liquidity
Distinctive Deposit Franchise with Granular, Longstanding Customer Base

STUART, Fla., July 27, 2023 /GLOBE NEWSWIRE/ -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the second quarter of 2023 of $31.2 million, or $0.37 per diluted share, compared to $11.8 million, or $0.15 per diluted share in the first quarter of 2023 and $32.8 million, or $0.53 per diluted share in the second quarter of 2022. For the six months ended June 30, 2023, net income was $43.1 million, or $0.52 per diluted share, a decrease of 19% compared to the six months ended June 30, 2022.
Adjusted net income1 for the second quarter of 2023 was $49.2 million, or $0.58 per diluted share, compared to $29.2 million, or $0.36 per diluted share in the first quarter of 2023 and $36.3 million, or $0.59 per diluted share in the second quarter of 2022. Adjusted net income1 for the six months ended June 30, 2023 was $78.4 million, or $0.94 per diluted share, an increase of 24% compared to the six months ended June 30, 2022.
For the second quarter of 2023, return on average tangible assets was 1.06% and return on average tangible shareholders' equity was 12.08%, compared to 0.52% and 5.96%, respectively, in the prior quarter, and 1.29% and 13.01%, respectively, in the prior year quarter. Adjusted return on average tangible assets1 in the second quarter of 2023 was 1.41% and adjusted return on average tangible shareholders' equity1 was 16.08%, compared to 0.90% and 10.34%, respectively, in the prior quarter, and 1.38% and 13.97%, respectively, in the prior year quarter. For the six months ended June 30, 2023, return on average tangible assets was 0.80% and return on average tangible shareholders' equity was 9.14%, compared to 1.07% and 10.46%, respectively, for the six months ended June 30, 2022. For the six months ended June 30, 2023, adjusted return on average tangible assets1 was 1.16% and adjusted return on average tangible shareholders' equity1 was 13.32%, compared to 1.23% and 11.95%, respectively, for the six months ended June 30, 2022.
Charles M. Shaffer, Seacoast's Chairman and CEO said, "Seacoast delivered another quarter of robust financial performance, with strong adjusted earnings leading to an adjusted return on tangible common equity of 16.1%. Our capital and liquidity ratios were strong and our asset quality remains excellent. During the quarter, we successfully completed the Professional Bank conversion, wrapping up a significant period of M&A activity that has boosted Seacoast beyond the $10 billion asset threshold and definitively positioned the Company as Florida’s Bank.”
Shaffer added, “Seacoast is committed to our fortress balance sheet, with an allowance for loan losses of $159.7 million and an additional $201.8 million discount on acquired loans, providing significant loss absorption capacity. Our second quarter ratio of tangible common equity to tangible assets increased to 8.53% as we moved past the initially dilutive effect of recent acquisitions, reflecting commitment to driving shareholder value creation."
Shaffer concluded, "Our strategic focus for the balance of the year will be on relationship-driven customer acquisition and carefully managing our expense base while investing in tactics to drive low-cost deposit growth. We believe that this rigorous approach will support solid capital growth, produce a broadly diversified and stable funding base, and generate increased franchise value over the long run."

Acquisition Update
In June 2023, we successfully completed the integration of Professional Holding Corp. (“Professional”), including the consolidation of five branches in the South Florida market. Merger-related expense synergies are expected to be fully realized in the second half of 2023. Direct merger-related costs recorded during the second quarter of 2023 totaled $15.6 million. We expect merger-related costs to be insignificant in the third quarter of 2023.




1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.
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Financial Results
Income Statement
•Net income was $31.2 million, or $0.37 per diluted share, for the second quarter of 2023 compared to net income of $11.8 million, or $0.15 per diluted share, for the prior quarter, and $32.8 million, or $0.53 per diluted share, for the prior year quarter. For the six months ended June 30, 2023, net income was $43.1 million, or $0.52 per diluted share, compared to $53.3 million, or $0.86 per diluted share, for the six months ended June 30, 2022. The results for the six months ended June 30, 2023 included the $26.6 million day-1 provision for credit losses on loans acquired in the Professional acquisition. Adjusted net income1 for the second quarter of 2023 was $49.2 million, or $0.58 per diluted share, compared to $29.2 million, or $0.36 per diluted share, for the prior quarter, and $36.3 million, or $0.59 per diluted share, for the prior year quarter. For the six months ended June 30, 2023, adjusted net income1 was $78.4 million, or $0.94 per diluted share, compared to $63.4 million, or $1.03 per diluted share, for the six months ended June 30, 2022.
•Net revenues were $148.5 million in the second quarter of 2023, a decrease of $5.1 million, or 3%, compared to the prior quarter, and an increase of $49.9 million, or 51%, compared to the prior year quarter. For the six months ended June 30, 2023, net revenues were $302.1 million, an increase of $111.6 million, or 59%, compared to the six months ended June 30, 2022. Adjusted revenues1 were $148.7 million in the second quarter of 2023, a decrease of $2.7 million, or 2%, compared to the prior quarter, and an increase of $49.8 million, or 50%, compared to the prior year quarter. For the six months ended June 30, 2023, adjusted revenues1 were $300.1 million, an increase of $108.8 million, or 57%, compared to the six months ended June 30, 2022.
•Pre-tax pre-provision earnings1 were $40.9 million in the second quarter of 2023, a decrease of 12% compared to the first quarter of 2023 and a decrease of 4% compared to the second quarter of 2022. Adjusted pre-tax pre-provision earnings1 were $64.9 million in the second quarter of 2023, a decrease of 9% compared to the first quarter of 2023 and an increase of 40% compared to the second quarter of 2022. Adjusted pre-tax pre-provision earnings1 for the six months ended June 30, 2023 were $135.9 million, an increase of $47.8 million, or 54%, when compared to the six months ended June 30, 2022.
•Net interest income totaled $127.0 million in the second quarter of 2023, a decrease of $4.2 million, or 3%, from the first quarter of 2023 and an increase of $45.3 million, or 56%, compared to the second quarter of 2022. When excluding accretion on acquired loans, net interest income declined $2.4 million. Accretion on acquired loans totaled $14.2 million in the second quarter of 2023, $15.9 million in the first quarter of 2023, and $2.7 million in the second quarter of 2022. For the six months ended June 30, 2023, net interest income was $258.1 million, an increase of $99.9 million, or 63%, compared to the six months ended June 30, 2022. Accretion on acquired loans totaled $30.1 million for the six months ended June 30, 2023, compared to $6.4 million for the six months ended June 30, 2022.
•Net interest margin decreased 45 basis points to 3.86% in the second quarter of 2023 compared to 4.31% in the first quarter of 2023. The decline in the net interest margin from the prior quarter was driven by the impact of rising rates on the competitive environment for deposits, the continued effect of an inverted yield curve, and lower accretion of purchase discounts on acquired loans. Loan yields increased three basis points to 5.89%. The effect on loan yields of accretion of purchase discounts on acquired loans in the second quarter of 2023 was an increase of 56 basis points, compared to an increase of 69 basis points in the first quarter of 2023. Securities yields increased 28 basis points to 3.13%, including approximately 12 basis points of benefit from interest rate swaps initiated in the second quarter. The cost of deposits increased 61 basis points, from 77 basis points in the prior quarter, to 1.38% for the second quarter of 2023.
•Noninterest income totaled $21.6 million in the second quarter of 2023, a decrease of $0.9 million, or 4%, compared to the prior quarter, and an increase of $4.6 million, or 27%, compared to the prior year quarter. For the six months ended June 30, 2023, noninterest income was $44.0 million, an increase of $11.7 million, or 36%, compared to the six months ended June 30, 2022. Results for the second quarter of 2023 included the following:
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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•Service charges on deposits increased $0.3 million, or 7%, compared to the prior quarter and $1.2 million, or 34%, year over year, including the continued benefit of the expansion of treasury management services to commercial customers.
•Interchange income totaled $5.1 million in the second quarter, an increase of $0.4 million, or 8%, when compared to the prior quarter and $0.8 million, or 19%, compared to the prior year quarter. As a reminder, beginning in the third quarter of 2023, the Company’s interchange income will be reduced by the requirements of the Durbin amendment, which became effective for the Company on July 1, 2023.
•The wealth management division continues to demonstrate notable success in building relationships, and during the second quarter of 2023, income increased $0.3 million, or 8%, compared to the prior quarter and $0.5 million, or 20%, compared to the prior year quarter. Assets under management increased by $60 million in the second quarter of 2023, bringing total assets under management to $1.6 billion, up 36% from the prior year.
•Mortgage banking fees totaled $0.6 million in the second quarter, an increase of $0.2 million, or 35%, due to higher saleable production.
•Other income decreased by $1.8 million compared to the prior quarter, primarily the result of the recognition in the prior quarter of $2.1 million in bank owned life insurance (“BOLI”) death benefits.
•The provision for credit losses was a net benefit of $0.8 million in the second quarter of 2023, compared to a provision of $31.6 million in the first quarter of 2023 and a provision of $0.8 million in the second quarter of 2022. The provision for credit losses in the first quarter of 2023 included $26.6 million in day-1 provision recorded at the acquisition of Professional.
•Noninterest expense was $107.9 million in the second quarter of 2023, an increase of $0.4 million compared to the prior quarter, and an increase of $51.7 million, or 92%, compared to the prior year quarter. The second quarter of 2023 included $15.6 million of merger-related expenses, compared to $17.5 million in the prior quarter and $3.0 million in the prior year quarter. Noninterest expense was $215.3 million for the six months ended June 30, 2023, including $33.2 million in merger-related charges, compared to $115.1 million in the six months ended June 30, 2022, which included $9.7 million in merger-related charges. Changes compared to the first quarter of 2023 included:
•Salaries and wages decreased $2.5 million to $45.2 million in the second quarter of 2023. The second quarter of 2023 included $1.6 million in merger-related expenses, compared to $4.2 million in the first quarter of 2023.
•In the third quarter of 2023, we are continuing our focus on efficiency and streamlining operations, and in late July we executed a reduction in the Company’s workforce by approximately 5%. The Company will incur severance charges in a range of approximately $2.0 to $3.0 million. The resulting lower compensation expense in the third quarter of 2023 will largely be offset by investments in marketing expenses to drive low-cost deposit growth, and lower expense deferral associated with slowing loan originations. As a reminder, under the relevant accounting guidance, the Company defers the expenses associated with the origination of new loans, and recognizes this expense as a reduction to loan yield over the life of the loan. We expect the full benefit of the reduction in workforce to materialize in the fourth quarter of 2023.
•Employee benefits decreased $1.1 million to $7.5 million in the second quarter of 2023 as a result of higher seasonal payroll taxes impacting the first quarter of 2023.
•Outsourced data processing costs increased $5.7 million to $20.2 million in the second quarter of 2023. The second quarter of 2023 included $10.9 million in merger-related expenses, compared to $6.6 million in the first quarter of 2023. Termination penalties related to the Professional technology contracts were recorded in the second quarter in conjunction with the system conversion.
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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•Telephone and data lines increased $0.4 million to $1.5 million in the second quarter of 2023 reflecting the expansion of the branch footprint.
•Legal and professional fees decreased by $3.4 million to $4.1 million in the second quarter of 2023, and included $1.7 million in merger-related expenses during the second quarter of 2023 compared to $4.8 million of merger-related expenses in the first quarter of 2023.
•Amortization of intangibles increased by $0.9 million to $7.7 million resulting from the first full quarter of amortization of the core deposit intangible assets acquired from Professional. These assets are amortized using an accelerated amortization method.
•Other noninterest expenses increased $1.1 million to $8.3 million in the second quarter of 2023, primarily attributed to maintaining parallel activities and processes prior to the conversion of Professional in June 2023.
•Seacoast recorded $10.2 million of income tax expense in the second quarter of 2023, compared to $2.7 million in the first quarter of 2023, and $8.9 million in the second quarter of 2022, with an effective tax rate of 24.6%, 18.6%, and 21.3%, respectively. Impacts related to stock-based compensation were tax expense of $0.3 million in the second quarter of 2023, tax benefits of $0.2 million in the first quarter of 2023, and tax benefits of $0.4 million in the second quarter of 2022. The first quarter of 2023 included a discrete benefit of $0.6 million related to the BOLI distribution which, combined with lower overall pre-tax income, resulted in a lower effective tax rate in that period.
•The efficiency ratio was 67.34% in the second quarter of 2023, compared to 65.43% in the first quarter of 2023 and 56.22% in the prior year quarter. The adjusted efficiency ratio1 was 56.44% in the second quarter of 2023, compared to 53.10% in the first quarter of 2023 and 53.15% in the prior year quarter. The Company continues to remain keenly focused on disciplined expense control. The increase in the adjusted efficiency ratio primarily reflects the impact of higher deposit rates on net interest income in the period. The adjusted efficiency ratio1 for the six months ended June 30, 2023 was 54.76% compared to 53.97% for the six months ended June 30, 2022.

Balance Sheet
•At June 30, 2023, the Company had total assets of $15.0 billion and total shareholders' equity of $2.1 billion. Book value per share was $24.14 on June 30, 2023, compared to $24.24 on March 31, 2023, and $21.65 on June 30, 2022. Tangible book value per share totaled $14.24 on June 30, 2023 compared to $14.25 on March 31, 2023 and $16.66 on June 30, 2022. Removing the impact of the change in accumulated comprehensive income, tangible book value per share increased by $0.20.
•Debt securities totaled $2.6 billion on June 30, 2023, a decrease of $129.8 million, or 5%, compared to March 31, 2023. Debt securities include approximately $1.9 billion in securities held at fair value and classified as available for sale. The unrealized loss on these securities is fully reflected in the value presented on the balance sheet. The portfolio also includes $707.8 million in securities classified as held to maturity with a fair value of $577.6 million. Held-to-maturity securities consist solely of mortgage-backed securities and collateralized mortgage obligations guaranteed by U.S. government agencies, each of which is expected to recover any price depreciation over its holding period as the debt securities move to maturity. The Company has significant liquidity and available borrowing capacity and has the intent and ability to hold these investments to maturity.
•Loans decreased $16.5 million when compared to the prior quarter, totaling $10.1 billion as of June 30, 2023. The Company continues to exercise a disciplined approach to lending, carefully underwriting loans to strict underwriting guidelines and setting high expectations for risk adjusted returns given the current environment.
•Loan originations were $518.9 million in the second quarter of 2023, a decrease of 3% compared to $536.3 million in the first quarter of 2023.
•Commercial originations were $317.4 million during the second quarter of 2023, compared to $321.7 million in the first quarter of 2023, and $461.9 million in the second quarter of 2022.
•Consumer originations in the second quarter of 2023 were $97.2 million, compared to $110.6 million in the first quarter of 2023, and $130.8 million in the second quarter of 2022.
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.    
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•Residential loans originated for sale in the secondary market totaled $19.1 million in the second quarter of 2023, compared to $13.9 million in the first quarter of 2023, and $42.7 million in the second quarter of 2022.
•Closed residential loans retained in the portfolio totaled $85.3 million in the second quarter of 2023, compared to $90.1 million in the first quarter of 2023, and $103.0 million in the second quarter of 2022.
•Pipelines (loans in underwriting and approval or approved and not yet closed) totaled $284.6 million on June 30, 2023, a decrease of 27% from March 31, 2023, and a decrease of 54% from June 30, 2022.
•Commercial pipelines were $217.6 million as of June 30, 2023, a decrease of 27% from $297.4 million at March 31, 2023, and a decrease of 54% from $476.7 million at June 30, 2022. The decline in pipeline quarter over quarter was the result of the impact of higher rates and a continued selective approach on new credit facilities given a cautious economic outlook.
•Consumer pipelines were $28.4 million as of June 30, 2023, a decrease of $10.3 million from $38.7 million at March 31, 2023, and a decrease of 62% from $75.5 million at June 30, 2022.
•Residential saleable pipelines were $11.5 million as of June 30, 2023, compared to $6.6 million at March 31, 2023, and $14.7 million at June 30, 2022. Retained residential pipelines were $27.1 million as of June 30, 2023, compared to $48.4 million at March 31, 2023, and $53.1 million at June 30, 2022.
•Total deposits were $12.3 billion as of June 30, 2023, a decrease of $26.4 million when compared to March 31, 2023, and an increase of $3.1 billion, or 34%, compared to June 30, 2022. Seacoast’s granular, longstanding deposit base is a hallmark of our franchise, and in the current environment serves as a significant source of strength. The Company continues to maintain balance sheet flexibility and ended the quarter with a loan to deposit ratio of 82%.
•At June 30, 2023, transaction account balances represented 57% of overall deposits.
•Noninterest bearing demand deposits represent 34% of overall deposits.
•Average deposits per banking center were $157 million at June 30, 2023 compared to $148 million at March 31, 2023.
•Uninsured deposits represented only 34% of overall deposit accounts as of June 30, 2023. This includes public funds under the Florida Qualified Public Depository program, which provides loss protection to depositors beyond FDIC insurance limits. Excluding such balances, the uninsured and uncollateralized deposits were 28% of total deposits. The Company has liquidity sources including cash and lines of credit with the Federal Reserve and Federal Home Loan Bank that represent 155% of uninsured deposits, and 184% of uninsured and uncollateralized deposits.
•Consumer deposits represent 43% of overall deposit funding with an average consumer customer balance of $23 thousand. Commercial deposits represent 57% of overall deposit funding with an average business customer balance of $109 thousand.
•Federal Home Loan Bank advances totaled $160.0 million at June 30, 2023 with a weighted average interest rate of 3.64%. In the aggregate, borrowed funds, including FHLB advances, subordinated debt, and brokered deposits represented only 6.6% of total liabilities as of June 30, 2023.
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 were $48.3 million at June 30, 2023. Nonperforming loans to total loans outstanding were 0.48% at June 30, 2023, 0.50% at March 31, 2023, and 0.40% at June 30, 2022.
•Nonperforming assets to total assets decreased to 0.37% at June 30, 2023, compared to 0.38% at March 31, 2023, and increased from 0.27% at June 30, 2022.
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.    
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•The ratio of allowance for credit losses to total loans was 1.58% at June 30, 2023, 1.54% at March 31, 2023, and 1.39% at June 30, 2022.
•Net charge-offs of $0.7 million for the second quarter of 2023 compared to $3.2 million in the first quarter of 2023 and compared to a net recovery of $0.1 million in the second quarter of 2022. Net charge-offs for the four most recent quarters averaged 0.06%.
•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 loan size is $278 thousand, and the average commercial loan size is $685 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 52% and 256% of total bank-level risk-based capital, respectively, compared to 48% and 258%, respectively, at March 31, 2023. On a consolidated basis, construction and land development and commercial real estate loans represent 47% and 236%, 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, 2023 of 13.9% compared to 13.4% at March 31, 2023, and 16.8% at June 30, 2022. The total capital ratio was 15.0%, the common equity tier 1 capital ratio was 12.9%, and the tier 1 leverage ratio was 10.8% at June 30, 2023. The Company is considered “well capitalized” based on applicable U.S. regulatory capital ratio requirements.
•In April 2023, the Company announced an increase to its common share dividend by $0.01 to $0.18 per share.
•Cash and cash equivalents at June 30, 2023 totaled $727.9 million.
•Our Board of Directors has approved a share repurchase program of up to $100 million in shares of the Company’s common stock. During the second quarter of 2023, 2,515 shares were repurchased under the program at a weighted average price of $17.99 per share.
•The Company’s loan to deposit ratio was 82% at June 30, 2023, providing liquidity and flexibility moving forward.
•Tangible common equity to tangible assets was 8.53% at June 30, 2023, compared to 8.36% at March 31, 2023, and 9.74% at June 30, 2022. If all held-to-maturity securities were adjusted to fair value, the tangible common equity ratio would have been 7.87%.
•At June 30, 2023, in addition to $727.9 million in cash, the Company had $5.7 billion in available borrowing capacity, including $4.7 billion in available collateralized lines of credit, $0.7 billion of unpledged debt securities available as collateral for potential additional borrowings, and available unsecured lines of credit of $0.3 billion. These liquidity sources as of June 30, 2023 represented 184% of uninsured and uncollateralized deposits.
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'231Q'234Q'223Q'222Q'22
Selected balance sheet data:
Gross loans$10,117,919$10,134,395$8,144,724$6,690,845$6,541,548
Total deposits12,283,26712,309,7019,981,5958,765,4149,188,953
Total assets15,041,93215,255,40812,145,76210,345,23510,811,704
Performance measures:
Net income$31,249 $11,827 $23,927 $29,237 $32,755 
Net interest margin3.86 %4.31 %4.36 %3.67 %3.38 %
Pre-tax pre-provision earnings1
40,864 46,321 45,999 43,143 42,580 
Average diluted shares outstanding85,536 80,717 71,374 61,961 61,923 
Diluted earnings per share (EPS)$0.37 $0.15 $0.34 $0.47 $0.53 
Return on (annualized):
Average assets (ROA)0.84 %0.34 %0.78 %1.10 %1.21 %
Average tangible assets (ROTA)2
1.06 0.52 0.94 1.17 1.29 
Average tangible common equity (ROTCE)2
12.08 5.96 10.36 11.53 13.01 
Tangible common equity to tangible assets2
8.53 8.36 9.08 9.79 9.74 
Tangible book value per share2
$14.24 $14.25 $14.69 $15.98 $16.66 
Efficiency ratio67.34 %65.43 %63.39 %57.13 %56.22 %
Adjusted operating measures1:
Adjusted net income$49,203 $29,241 $39,926 $32,837 $36,327 
Adjusted pre-tax pre-provision earnings64,856 71,081 66,649 48,989 46,397 
Adjusted diluted EPS0.58 0.36 0.56 0.53 0.59 
Adjusted ROTA2
1.41 %0.90 %1.36 %1.27 %1.38 %
Adjusted ROTCE2
16.08 10.34 15.05 12.48 13.97 
Adjusted efficiency ratio56.44 53.10 51.52 53.28 53.15 
Net adjusted noninterest expense as a
percent of average tangible assets2
2.40 2.47 2.42 2.16 2.00 
Other data:
Market capitalization3
$1,880,407$2,005,241$2,233,761$1,858,429$2,028,996
Full-time equivalent employees1,670 1,650 1,490 1,156 1,095 
Number of ATMs96 97 100 79 79 
Full-service banking offices78 83 78 58 58 
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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OTHER INFORMATION
Conference Call Information
Seacoast will host a conference call July 28th, 2023, at 10:00 a.m. Eastern Time, to discuss the second quarter 2023 earnings results and business trends. Investors may call in (toll-free) by dialing (800) 736-4594. 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.” Additionally, a recording of the call will be made available to individuals shortly after the conference call and can be accessed via a link at www.SeacoastBanking.com under the heading “Corporate Information.” The recording 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 $15.0 billion in assets and $12.3 billion in deposits as of June 30, 2023. Seacoast provides integrated financial services including commercial and consumer banking, wealth management, and mortgage services to customers at 78 full-service branches across Florida, and through advanced mobile and online banking solutions. Seacoast National Bank is the wholly-owned subsidiary bank of Seacoast Banking Corporation of Florida. For more information about Seacoast, visit www.SeacoastBanking.com.


Cautionary Notice Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), 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 Professional Holding Corp., or expects to acquire, as well as statements with respect to Seacoast's objectives, strategic plans, expectations and intentions and other statements that are not historical facts. 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 Banking Corporation of Florida (“Seacoast” or the “Company”) or its wholly-owned banking subsidiary, Seacoast National Bank (“Seacoast Bank”), to be materially different from 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 impact of current and future economic and market conditions generally (including seasonality) and in the financial services industry, nationally and within Seacoast’s primary market areas, including the effects of inflationary pressures, changes in interest rates, slowdowns in economic growth, and the potential for high unemployment rates, as well as the financial stress on borrowers and changes to customer and client behavior and credit risk as a result of the foregoing; potential impacts of the recent adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; 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 and the possibility that the U.S. could default on its debt obligations; the risks of changes in interest rates on the level and composition of deposits (as well as the cost of, and competition for, 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; changes in accounting policies, rules and practices; changes in
    
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retail distribution strategies, customer preferences and behavior generally and 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; the Company’s concentration in commercial real estate loans and in real estate collateral in Florida; Seacoast’s ability to comply with any regulatory requirements; the effects of problems encountered by other financial institutions that adversely affect Seacoast or the banking industry; 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 decline in stock market prices on our fee income from our wealth management business; 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; fraud or misconduct by internal or external, which Seacoast may not be able to prevent, detect or mitigate; 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, including hurricanes in the Company’s footprint, 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; risks related to environmental, social and governance (“ESG”) matters, the scope and pace of which could alter Seacoast’s reputation and shareholder, associate, customer and third-party affiliations; the risks relating to bank acquisitions including the the merger with Professional Holding Corp. including, without limitation: the diversion of management's time on issues related to the merger; 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; regulatory enforcement and litigation risk; 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; and other factors and risks described under “Risk Factors” herein and in any of the Company's subsequent reports filed with the SEC and available on its website at www.sec.gov
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, 2022 and quarterly report on Form 10-Q for the quarter ended June 30, 2023 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'231Q'234Q'223Q'222Q'222Q'232Q'22
Summary of Earnings
Net income$31,249 $11,827 $23,927 $29,237 $32,755 $43,076 $53,343 
Adjusted net income1
49,203 29,241 39,926 32,837 36,327 78,444 63,383 
Net interest income2
127,153 131,351 119,858 88,399 81,764 258,504 158,403 
Net interest margin2,3
3.86 %4.31 %4.36 %3.67 %3.38 %4.09 %3.32 %
Pre-tax pre-provision earnings1
40,864 46,321 45,999 43,143 42,580 87,185 75,675 
Adjusted pre-tax pre-provision earnings1
64,856 71,081 66,649 48,989 46,397 135,937 88,134 
Performance Ratios
Return on average assets-GAAP basis3
0.84 %0.34 %0.78 %1.10 %1.21 %0.60 %1.00 %
Return on average tangible assets-GAAP basis3,4
1.06 0.52 0.94 1.17 1.29 0.80 1.07 
Adjusted return on average tangible assets1,3,4
1.41 0.90 1.36 1.27 1.38 1.16 1.23 
Pre-tax pre-provision return on average tangible assets1,3,4
1.33 1.58 1.69 1.71 1.66 1.45 1.51 
Adjusted pre-tax pre-provision return on average tangible assets1,3,4
1.85 2.18 2.28 1.89 1.77 2.01 1.70 
Net adjusted noninterest expense to average tangible assets1,3,4
2.40 2.47 2.42 2.16 2.00 2.44 2.00 
Return on average shareholders' equity-GAAP basis3
6.05 2.53 6.03 8.60 9.73 4.38 7.82 
Return on average tangible common equity-GAAP basis3,4
12.08 5.96 10.36 11.53 13.01 9.14 10.46 
Adjusted return on average tangible common equity1,3,4
16.08 10.34 15.05 12.48 13.97 13.32 11.95 
Efficiency ratio5
67.34 65.43 63.39 57.13 56.22 66.37 59.17 
Adjusted efficiency ratio1
56.44 53.10 51.52 53.28 53.15 54.76 53.97 
Noninterest income to total revenue (excluding securities gains/losses)14.63 14.55 12.84 15.72 17.45 14.59 17.30 
Tangible common equity to tangible assets4
8.53 8.36 9.08 9.79 9.74 8.53 9.74 
Average loan-to-deposit ratio83.48 82.43 77.67 73.90 70.60 82.98 70.92 
End of period loan-to-deposit ratio82.42 82.35 81.63 76.35 71.34 82.42 71.34 
Per Share Data
Net income diluted-GAAP basis$0.37 $0.15 $0.34 $0.47 $0.53 $0.52 $0.86 
Net income basic-GAAP basis0.37 0.15 0.34 0.48 0.53 0.52 0.87 
Adjusted earnings1
0.58 0.36 0.56 0.53 0.59 0.94 1.03 
Book value per share common24.14 24.24 22.45 20.95 21.65 24.14 21.65 
Tangible book value per share14.24 14.25 14.69 15.98 16.66 14.24 16.66 
Cash dividends declared0.18 0.17 0.17 0.17 0.17 0.35 0.30 
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'231Q'234Q'223Q'222Q'222Q'232Q'22
Interest on securities:
Taxable$20,898 $19,244 $18,530 $15,653 $12,387 $40,142 $22,428 
Nontaxable97 105 130 138 138 202 278 
Interest and fees on loans148,265 135,168 105,322 73,970 69,307 283,433 136,425 
Interest on federal funds sold and other investments5,023 3,474 3,127 1,643 1,917 8,497 2,850 
Total Interest Income174,283 157,991 127,109 91,404 83,749 332,274 161,981 
Interest on deposits27,183 16,033 3,934 1,623 994 43,216 1,761 
Interest on time certificates14,477 5,552 1,358 380 436 20,029 904 
Interest on borrowed money5,660 5,254 2,108 1,117 672 10,914 1,147 
Total Interest Expense47,320 26,839 7,400 3,120 2,102 74,159 3,812 
Net Interest Income126,963 131,152 119,709 88,284 81,647 258,115 158,169 
Provision for credit losses(764)31,598 14,129 4,676 822 30,834 7,378 
Net Interest Income After Provision for Credit Losses127,727 99,554 105,580 83,608 80,825 227,281 150,791 
Noninterest income:
Service charges on deposit accounts4,560 4,242 3,996 3,504 3,408 8,802 6,209 
Interchange income5,066 4,694 4,650 4,138 4,255 9,760 8,383 
Wealth management income3,318 3,063 2,886 2,732 2,774 6,381 5,433 
Mortgage banking fees576 426 426 434 932 1,002 2,618 
Insurance agency income1,160 1,101 805 — — 2,261 — 
SBA gains249 322 105 108 473 571 629 
BOLI income2,068 1,916 1,526 1,363 1,349 3,984 2,683 
Other4,755 6,574 3,239 4,186 4,073 11,329 7,134 
21,752 22,338 17,633 16,465 17,264 44,090 33,089 
Securities (losses) gains, net(176)107 18 (362)(300)(69)(752)
Total Noninterest Income21,576 22,445 17,651 16,103 16,964 44,021 32,337 
Noninterest expenses:
Salaries and wages45,155 47,616 45,405 28,420 28,056 92,771 56,275 
Employee benefits7,472 8,562 5,300 4,074 4,151 16,034 9,652 
Outsourced data processing costs20,222 14,553 9,918 5,393 6,043 34,775 12,199 
Telephone / data lines1,518 1,081 1,185 973 908 2,599 1,641 
Occupancy7,065 6,938 5,457 5,046 4,050 14,003 8,036 
Furniture and equipment2,345 2,267 1,944 1,462 1,588 4,612 3,014 
Marketing2,047 2,238 1,772 1,461 1,882 4,285 3,053 
Legal and professional fees4,062 7,479 9,174 3,794 2,946 11,541 7,735 
FDIC assessments2,116 1,443 889 760 699 3,559 1,488 
Amortization of intangibles7,654 6,727 4,763 1,446 1,446 14,381 2,892 
Foreclosed property expense and net (gain) loss on sale(57)195 (411)9 (968)138 (1,132)
Provision for credit losses on unfunded commitments— 1,239 — 1,015 — 1,239 142 
Other8,266 7,137 6,114 7,506 5,347 15,403 10,070 
Total Noninterest Expense107,865 107,475 91,510 61,359 56,148 215,340 115,065 
Income Before Income Taxes41,438 14,524 31,721 38,352 41,641 55,962 68,063 
Income taxes10,189 2,697 7,794 9,115 8,886 12,886 14,720 
Net Income$31,249 $11,827 $23,927 $29,237 $32,755 $43,076 $53,343 
Per share of common stock:
Net income diluted$0.37 $0.15 $0.34 $0.47 $0.53 $0.52 $0.86 
Net income basic0.37 0.15 0.34 0.48 0.53 0.52 0.87 
Cash dividends declared0.18 0.17 0.17 0.17 0.17 0.35 0.30 
Average diluted shares outstanding85,536 80,717 71,374 61,961 61,923 83,260 61,818 
Average basic shares outstanding85,022 80,151 70,770 61,442 61,409 82,600 61,269 


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)20232023202220222022
Assets
Cash and due from banks$164,193 $180,607 $120,748 $176,463 $363,343 
Interest bearing deposits with other banks563,690 610,636 81,192 42,152 538,025 
Total Cash and Cash Equivalents727,883 791,243 201,940 218,615 901,368 
Time deposits with other banks2,987 3,236 3,236 4,481 4,730 
Debt Securities:
Available for sale (at fair value)1,916,231 2,015,967 1,871,742 1,860,734 1,800,791 
Held to maturity (at amortized cost)707,812 737,911 747,408 774,706 794,785 
Total Debt Securities2,624,043 2,753,878 2,619,150 2,635,440 2,595,576 
Loans held for sale5,967 2,838 3,151 1,620 14,205 
Loans10,117,919 10,134,395 8,144,724 6,690,845 6,541,548 
Less: Allowance for credit losses(159,715)(155,640)(113,895)(95,329)(90,769)
Net Loans9,958,204 9,978,755 8,030,829 6,595,516 6,450,779 
Bank premises and equipment, net116,959 116,522 116,892 81,648 74,784 
Other real estate owned7,526 7,756 2,301 2,419 2,419 
Goodwill732,910 728,396 480,319 286,606 286,606 
Other intangible assets, net109,716 117,409 75,451 18,583 20,062 
Bank owned life insurance293,880 292,545 237,824 209,087 207,724 
Net deferred tax assets127,941 124,301 94,457 83,139 60,080 
Other assets333,916 338,529 280,212 208,081 193,371 
Total Assets$15,041,932 $15,255,408 $12,145,762 $10,345,235 $10,811,704 
Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest demand$4,139,052 $4,554,509 $4,070,973 $3,529,489 $3,593,201 
Interest-bearing demand2,816,656 2,676,320 2,337,590 2,170,251 2,269,148 
Savings824,255 940,702 1,064,392 938,081 946,738 
Money market2,859,164 2,893,128 1,985,974 1,700,737 1,911,847 
Other time certificates628,036 598,483 369,389 312,840 350,571 
Brokered time certificates591,503 371,392 3,798 — — 
Time certificates of more than $250,000424,601 275,167 149,479 114,016 117,448 
Total Deposits12,283,267 12,309,701 9,981,595 8,765,414 9,188,953 
Securities sold under agreements to repurchase290,156 267,606 172,029 94,191 110,578 
Federal Home Loan Bank borrowings160,000 385,000 150,000 — — 
Subordinated debt, net105,970 105,804 84,533 71,857 71,786 
Other liabilities148,507 136,213 149,830 125,971 110,812 
Total Liabilities12,987,900 13,204,324 10,537,987 9,057,433 9,482,129 
Shareholders' Equity
Common stock8,509 8,461 7,162 6,148 6,141 
Additional paid in capital1,809,431 1,803,898 1,377,802 1,068,241 1,065,167 
Retained earnings437,087 421,271 423,863 412,166 393,431 
Treasury stock(14,171)(13,113)(13,019)(11,539)(11,632)
2,240,856 2,220,517 1,795,808 1,475,016 1,453,107 
Accumulated other comprehensive (loss) income, net(186,824)(169,433)(188,033)(187,214)(123,532)
Total Shareholders' Equity2,054,032 2,051,084 1,607,775 1,287,802 1,329,575 
Total Liabilities & Shareholders' Equity $15,041,932 $15,255,408 $12,145,762 $10,345,235 $10,811,704 
Common shares outstanding85,086 84,609 71,618 61,476 61,410 



CONSOLIDATED QUARTERLY FINANCIAL DATA(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
(Amounts in thousands)2Q'231Q'234Q'223Q'222Q'22
Credit Analysis
Net charge-offs (recoveries) $705 $3,188 $782 $103 $(124)
Net charge-offs (recoveries) to average loans0.03 %0.14 %0.04 %0.01 %— %
Allowance for credit losses159,715 155,640 113,895 95,329 90,769 
Non-acquired loans at end of period6,264,044 6,048,453 5,944,194 5,653,357 5,399,923 
Acquired loans at end of period3,853,875 4,085,942 2,200,530 1,037,488 1,141,625 
Total Loans$10,117,919 $10,134,395 $8,144,724 $6,690,845 $6,541,548 
Total allowance for credit losses to total loans at end of period1.58 1.54 1.40 1.42 1.39 
Purchase discount on acquired loans at end of period4.98 5.02 4.25 1.81 1.84 
End of Period
Nonperforming loans$48,326 $50,787 $28,843 $21,464 $26,442 
Other real estate owned530 530 530 109 109 
Properties previously used in bank operations included in other real estate owned6,996 7,226 1,771 2,310 2,310 
Total Nonperforming Assets$55,852 $58,543 $31,144 $23,883 $28,861 
Nonperforming Loans to Loans at End of Period0.48 %0.50 %0.35 %0.32 %0.40 %
Nonperforming Assets to Total Assets at End of Period0.37 0.38 0.26 0.23 0.27 
June 30,March 31,December 31,September 30,June 30,
Loans20232023202220222022
Construction and land development$794,371 $757,835 $587,332 $361,913 $350,025 
Commercial real estate - owner occupied1,669,369 1,652,491 1,478,302 1,253,459 1,254,343 
Commercial real estate - non-owner occupied 1
3,370,211 3,412,051 2,589,774 2,107,614 1,972,540 
Residential real estate 1
2,396,352 2,354,394 1,849,503 1,599,765 1,647,465 
Commercial and financial1,610,895 1,650,485 1,348,636 1,182,384 1,124,771 
Consumer272,082 301,740 286,587 180,416 175,201 
Paycheck Protection Program4,639 5,399 4,590 5,294 17,203 
Total Loans$10,117,919 $10,134,395 $8,144,724 $6,690,845 $6,541,548 
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
2Q'231Q'232Q'22
AverageYield/AverageYield/AverageYield/
(Amounts in thousands)BalanceInterestRateBalanceInterestRateBalanceInterestRate
Assets
Earning assets:
Securities:
Taxable$2,673,633 $20,898 3.13 %$2,700,122 $19,244 2.85 %$2,517,879 $12,387 1.97 %
Nontaxable15,621 120 3.08 16,271 131 3.22 22,443 175 3.12 
Total Securities2,689,254 21,018 3.13 2,716,393 19,375 2.85 2,540,322 12,562 1.98 
Federal funds sold327,433 4,313 5.28 106,778 1,294 4.91 644,144 1,281 0.80 
Interest bearing deposits with other banks and other investments90,783 710 3.14 178,463 2,180 4.95 46,257 636 5.51 
Loans excluding PPP loans10,096,394 148,420 5.90 9,363,873 135,329 5.86 6,454,444 68,647 4.27 
PPP loans4,834 12 1.00 5,328 12 0.91 26,322 741 11.29 
Total Loans10,101,228 148,432 5.89 9,369,201 135,341 5.86 6,480,766 69,388 4.29 
Total Earning Assets13,208,698 174,473 5.30 12,370,835 158,190 5.19 9,711,489 83,867 3.46 
Allowance for credit losses(156,207)(139,989)(90,242)
Cash and due from banks165,625 156,235 389,695 
Premises and equipment117,726 116,083 74,614 
Intangible assets842,988 750,694 307,411 
Bank owned life insurance293,251 274,517 206,839 
Other assets including deferred tax assets415,208 419,601 240,712 
Total Assets$14,887,289 $13,947,976 $10,840,518 
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand$2,666,314 $7,560 1.14 %$2,452,113 $3,207 0.53 %$2,262,408 $293 0.05 %
Savings906,936 427 0.19 1,053,220 400 0.15 962,264 64 0.03 
Money market2,806,672 19,196 2.74 2,713,224 12,426 1.86 1,938,421 637 0.13 
Time deposits1,425,344 14,477 4.07 812,422 5,552 2.77 496,186 436 0.35 
Securities sold under agreements to repurchase244,824 1,593 2.61 173,498 864 2.02 120,437 94 0.31 
Federal Home Loan Bank borrowings251,596 2,272 3.62 282,444 2,776 3.99 — — — 
Subordinated debt105,861 1,795 6.80 98,425 1,614 6.65 71,740 579 3.24 
Total Interest-Bearing Liabilities8,407,547 47,320 2.26 7,585,346 26,839 1.43 5,851,456 2,103 0.14 
Noninterest demand4,294,251 4,334,969 3,520,700 
Other liabilities114,962 130,616 117,794 
Total Liabilities12,816,760 12,050,931 9,489,950 
Shareholders' equity2,070,529 1,897,045 1,350,568 
Total Liabilities & Equity$14,887,289 $13,947,976 $10,840,518 
Cost of deposits1.38 %0.77 %0.06 %
Interest expense as a % of earning assets1.44 %0.88 %0.09 %
Net interest income as a % of earning assets$127,153 3.86 %$131,351 4.31 %$81,764 3.38 %
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, 2023Six Months Ended June 30, 2022
AverageYield/AverageYield/
(Amounts in thousands, except ratios)BalanceInterestRateBalanceInterestRate
Assets
Earning assets:
Securities:
Taxable$2,686,804 $40,142 2.99 %$2,462,447 $22,428 1.82 %
Nontaxable15,944 251 3.15 23,238 352 3.03 
Total Securities2,702,748 40,393 2.99 2,485,685 22,780 1.83 
Federal funds sold228,491 5,787 5.11 691,105 1,631 0.48 
Interest bearing deposits with other banks and other investments90,750 2,710 6.02 45,631 1,219 5.39 
Loans excluding PPP loans9,732,156 283,749 5.88 6,366,194 134,322 4.25 
PPP loans5,080 24 0.95 44,024 2,264 10.37 
Total Loans9,737,236 283,773 5.88 6,410,218 136,586 4.30 
Total Earning Assets12,759,225 332,663 5.26 9,632,639 162,216 3.40 
Allowance for credit losses(148,143)(88,862)
Cash and due from banks193,811 377,831 
Premises and equipment116,909 75,241 
Intangible assets797,096 305,875 
Bank owned life insurance283,936 206,173 
Other assets including deferred tax assets417,393 226,205 
Total Assets$14,420,227 $10,735,102 
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand$2,559,805 $10,767 0.85 %$2,180,351 $483 0.04 %
Savings979,674 827 0.17 943,908 129 0.03 
Money market2,760,207 31,622 2.31 1,957,435 1,149 0.12 
Time deposits1,120,576 20,029 3.60 528,255 904 0.35 
Securities sold under agreements to repurchase209,358 2,456 2.37 119,298 133 0.22 
Federal Home Loan Bank borrowings266,935 5,048 3.81 — — — 
Subordinated debt102,164 3,410 6.73 71,706 1,015 2.85 
Total Interest-Bearing Liabilities7,998,719 74,159 1.87 5,800,953 3,813 0.13 
Noninterest demand4,314,498 3,428,921 
Other liabilities122,746 129,815 
Total Liabilities12,435,963 9,359,689 
Shareholders' equity1,984,264 1,375,413 
Total Liabilities & Equity$14,420,227 $10,735,102 
Cost of deposits1.09 %0.06 %
Interest expense as a % of earning assets1.17 %0.08 %
Net interest income as a % of earning assets$258,504 4.09 %$158,403 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
June 30,March 31,December 31,September 30,June 30,
(Amounts in thousands)20232023202220222022
Customer Relationship Funding
Noninterest demand
Commercial$3,304,761 $3,622,441 $3,148,778 $2,827,591 $2,945,445 
Retail615,536 673,686 764,274 447,848 464,214 
Public funds152,159 194,977 112,553 210,662 143,075 
Other66,596 63,405 45,368 43,388 40,467 
Total Noninterest Demand4,139,052 4,554,509 4,070,973 3,529,489 3,593,201 
Interest-bearing demand
Commercial1,555,486 1,233,845 886,894 759,286 769,948 
Retail1,058,993 1,209,664 1,191,192 1,199,112 1,207,698 
Brokered— 44,474 54,777 81,799 — 
Public funds202,177 188,337 204,727 130,054 291,502 
Total Interest-Bearing Demand2,816,656 2,676,320 2,337,590 2,170,251 2,269,148 
Total transaction accounts
Commercial4,860,247 4,856,286 4,035,672 3,586,877 3,715,393 
Retail1,674,529 1,883,350 1,955,466 1,646,960 1,671,912 
Brokered— 44,474 54,777 81,799 — 
Public funds354,336 383,314 317,280 340,716 434,577 
Other66,596 63,405 45,368 43,388 40,467 
Total Transaction Accounts6,955,708 7,230,829 6,408,563 5,699,740 5,862,349 
Savings
Commercial101,908 108,023 91,943 71,807 70,090 
Retail722,347 832,679 972,449 866,274 876,648 
Total Savings824,255 940,702 1,064,392 938,081 946,738 
Money market
Commercial1,426,348 1,542,220 932,518 788,009 819,452 
Retail1,275,721 1,279,712 984,561 857,914 914,918 
Brokered— — — — 106,823 
Public funds157,095 71,196 68,895 54,814 70,654 
Total Money Market2,859,164 2,893,128 1,985,974 1,700,737 1,911,847 
Brokered time certificates591,503 371,392 3,798 — — 
Other time certificates1,052,637 873,650 518,868 426,856 468,019 
1,644,140 1,245,042 522,666 426,856 468,019 
Total Deposits$12,283,267 $12,309,701 $9,981,595 $8,765,414 $9,188,953 
Customer sweep accounts$290,156 $267,606 $172,029 $94,191 $110,578 





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'231Q'234Q'223Q'222Q'222Q'232Q'22
Net Income$31,249 $11,827 $23,927 $29,237 $32,755 $43,076 $53,343 
Total noninterest income21,576 22,445 17,651 16,103 16,964 44,021 32,337 
Securities losses (gains), net176 (107)(18)362 300 69 752 
BOLI benefits on death (included in other income)— (2,117)— — — (2,117)— 
Total Adjustments to Noninterest Income176 (2,224)(18)362 300 (2,048)752 
Total Adjusted Noninterest Income21,752 20,221 17,633 16,465 17,264 41,973 33,089 
Total noninterest expense107,865 107,475 91,510 61,359 56,148 215,340 115,065 
Salaries and wages(1,573)(4,240)(5,680)— (652)(5,813)(3,605)
Outsourced data processing costs(10,904)(6,551)(2,582)— (420)(17,455)(1,052)
Legal and professional fees(1,664)(4,789)(6,485)(1,791)(1,381)(6,453)(4,272)
Other categories(1,507)(1,952)(1,393)(263)(586)(3,459)(802)
Total merger related charges(15,648)(17,532)(16,140)(2,054)(3,039)(33,180)(9,731)
Amortization of intangibles(7,654)(6,727)(4,763)(1,446)(1,446)(14,381)(2,892)
Branch reductions and other expense initiatives(571)(1,291)(176)(960)— (1,862)(74)
Total Adjustments to Noninterest Expense(23,873)(25,550)(21,079)(4,460)(4,485)(49,423)(12,697)
Total Adjusted Noninterest Expense83,992 81,925 70,431 56,899 51,663 165,917 102,368 
Income Taxes10,189 2,697 7,794 9,115 8,886 12,886 14,720 
Tax effect of adjustments 6,095 5,912 5,062 1,222 1,213 12,007 3,409 
Adjusted Income Taxes16,284 8,609 12,856 10,337 10,099 24,893 18,129 
Adjusted Net Income$49,203 $29,241 $39,926 $32,837 $36,327 $78,444 $63,383 
Earnings per diluted share, as reported$0.37 $0.15 $0.34 $0.47 $0.53 $0.52 $0.86 
Adjusted Earnings per Diluted Share 0.58 0.36 0.56 0.53 0.59 0.94 1.03 
Average diluted shares outstanding 85,536 80,717 71,374 61,961 61,923 83,260 61,818 
Adjusted Noninterest Expense$83,992 $81,925 $70,431 $56,899 $51,663 $165,917 $102,368 
Provision for credit losses on unfunded commitments— (1,239)— (1,015)— (1,239)(142)
Foreclosed property expense and net gain (loss) on sale 57 (195)411 (9)968 (138)1,132 
Net Adjusted Noninterest Expense$84,049 $80,491 $70,842 $55,875 $52,631 $164,540 $103,358 
Revenue$148,539 $153,597 $137,360 $104,387 $98,611 $302,136 $190,506 
Total Adjustments to Revenue176 (2,224)(18)362 300 (2,048)752 
Impact of FTE adjustment190 199 149 115 117 389 234 
Adjusted Revenue on a fully taxable equivalent basis$148,905 $151,572 $137,491 $104,864 $99,028 $300,477 $191,492 
Adjusted Efficiency Ratio56.44 %53.10 %51.52 %53.28 %53.15 %54.76 %53.97 %
Net Interest Income$126,963 $131,152 $119,709 $88,284 $81,647 $258,115 $158,169 
Impact of FTE adjustment190 199 149 115 117 389 234 
Net Interest Income including FTE adjustment$127,153 $131,351 $119,858 $88,399 $81,764 $258,504 $158,403 
Total noninterest income21,576 22,445 17,651 16,103 16,964 44,021 32,337 
Total noninterest expense107,865 107,475 91,510 61,359 56,148 215,340 115,065 
Pre-Tax Pre-Provision Earnings$40,864 $46,321 $45,999 $43,143 $42,580 $87,185 $75,675 
Total Adjustments to Noninterest Income176 (2,224)(18)362 300 (2,048)752 
Total Adjustments to Noninterest Expense(23,816)(26,984)(20,668)(5,484)(3,517)(50,800)(11,707)
Adjusted Pre-Tax Pre-Provision Earnings$64,856 $71,081 $66,649 $48,989 $46,397 $135,937 $88,134 
Average Assets$14,887,289 $13,947,976 $12,139,856 $10,585,338 $10,840,518 $14,420,227 $10,735,102 
Less average goodwill and intangible assets(842,988)(750,694)(521,412)(305,935)(307,411)(797,096)(305,875)
Average Tangible Assets$14,044,301 $13,197,282 $11,618,444 $10,279,403 $10,533,107 $13,623,131 $10,429,227 


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'231Q'234Q'223Q'222Q'222Q'232Q'22
Return on Average Assets (ROA)0.84 %0.34 %0.78 %1.10 %1.21 %0.60 %1.00 %
Impact of removing average intangible assets and related amortization 0.22 0.18 0.16 0.07 0.08 0.20 0.07 
Return on Average Tangible Assets (ROTA)1.06 0.52 0.94 1.17 1.29 0.80 1.07 
Impact of other adjustments for Adjusted Net Income 0.35 0.38 0.42 0.10 0.09 0.36 0.16 
Adjusted Return on Average Tangible Assets1.41 0.90 1.36 1.27 1.38 1.16 1.23 
Pre-Tax Pre-Provision return on Average Tangible Assets1.33 %1.58 %1.69 %1.71 %1.66 %1.45 %1.51 %
Impact of adjustments on Pre-Tax Pre-Provision earnings0.52 0.60 0.59 0.18 0.11 0.56 0.19 
Adjusted Pre-Tax Pre-Provision Return on Tangible Assets1.85 2.18 2.28 1.89 1.77 2.01 1.70 
Average Shareholders' Equity$2,070,529 $1,897,045 $1,573,704 $1,349,475 $1,350,568 $1,984,264 $1,375,413 
Less average goodwill and intangible assets(842,988)(750,694)(521,412)(305,935)(307,411)(797,096)(305,875)
Average Tangible Equity$1,227,541 $1,146,351 $1,052,292 $1,043,540 $1,043,157 $1,187,168 $1,069,538 
Return on Average Shareholders' Equity 6.05 %2.53 %6.03 %8.60 %9.73 %4.38 %7.82 %
Impact of removing average intangible assets and related amortization 6.03 3.43 4.33 2.93 3.28 4.76 2.64 
Return on Average Tangible Common Equity (ROTCE)12.08 5.96 10.36 11.53 13.01 9.14 10.46 
Impact of other adjustments for Adjusted Net Income 4.00 4.38 4.69 0.95 0.96 4.18 1.49 
Adjusted Return on Average Tangible Common Equity 16.08 10.34 15.05 12.48 13.97 13.32 11.95 
Loan interest income1
$148,432 $135,341 $105,437 $74,050 $69,388 $283,773 $136,586 
Accretion on acquired loans(14,191)(15,942)(9,710)(2,242)(2,720)(30,133)(6,437)
Loan interest income excluding accretion on acquired loans$134,241 $119,399 $95,727 $71,808 $66,668 $253,640 $130,149 
Yield on loans1
5.89 5.86 5.29 4.45 4.29 5.88 4.30 
Impact of accretion on acquired loans (0.56)(0.69)(0.49)(0.14)(0.16)(0.63)(0.21)
Yield on loans excluding accretion on acquired loans5.33 %5.17 %4.80 %4.31 %4.13 %5.25 %4.09 %
Net Interest Income1
$127,153 $131,351 $119,858 $88,399 $81,764 $258,504 $158,403 
Accretion on acquired loans(14,191)(15,942)(9,710)(2,242)(2,720)(30,133)(6,437)
Net interest income excluding accretion on acquired loans$112,962 $115,409 $110,148 $86,157 $79,044 $228,371 $151,966 
Net Interest Margin3.86 4.31 4.36 3.67 3.38 4.09 3.32 
Impact of accretion on acquired loans (0.43)(0.53)(0.35)(0.09)(0.12)(0.48)(0.14)
Net interest margin excluding accretion on acquired loans3.43 %3.78 %4.01 %3.58 %3.26 %3.61 %3.18 %
Security interest income1
$21,018 $19,375 $18,694 $15,827 $12,562 $40,393 $22,780 
Tax equivalent adjustment on securities(23)(26)(34)(35)(36)(49)(73)
Security interest income excluding tax equivalent adjustment$20,995 $19,349 $18,660 $15,792 $12,526 $40,344 $22,707 
Loan interest income1
$148,432 $135,341 $105,437 $74,050 $69,388 $283,773 $136,586 
Tax equivalent adjustment on loans(167)(173)(115)(80)(81)(340)(161)
Loan interest income excluding tax equivalent adjustment$148,265 $135,168 $105,322 $73,970 $69,307 $283,433 $136,425 
Net Interest Income1
$127,153 $131,351 $119,858 $88,399 $81,764 $258,504 $158,403 
Tax equivalent adjustment on securities(23)(26)(34)(35)(36)(49)(73)
Tax equivalent adjustment on loans(167)(173)(115)(80)(81)(340)(161)
Net interest income excluding tax equivalent adjustment$126,963 $131,152 $119,709 $88,284 $81,647 $258,115 $158,169 
1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.