8-K
SEACOAST BANKING CORP OF FLORIDA (SBCF)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) April 27, 2023
SEACOAST BANKING CORPORATION OF FLORIDA
(Exact Name of Registrant as Specified in Charter)
| Florida | 000-13660 | 59-2260678 | |||||
|---|---|---|---|---|---|---|---|
| (State or Other Jurisdiction<br>of Incorporation) | (Commission<br>File Number) | (IRS Employer<br>Identification No.) | 815 COLORADO AVENUE, | STUART | FL | 34994 | |
| --- | --- | --- | --- | ||||
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code (772) 287-4000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.10 par value | SBCF | Nasdaq Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
SEACOAST BANKING CORPORATION OF FLORIDA
Item 2.02 Results of Operations and Financial Condition
On April 27, 2023, Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”) announced its financial results for the quarter ended March 31, 2023. A copy of the press release announcing Seacoast’s results for the quarter ended March 31, 2023, is attached hereto as Exhibit 99.1 and incorporated herein by reference.
Item 7.01 Regulation FD Disclosure
On April 28, 2023, Seacoast will hold an investor conference call to discuss its financial results for the quarter ended March 31, 2023. Attached as Exhibit 99.2 are charts (available on the Company’s website at www.seacoastbanking.com) containing information used in the conference call and incorporated herein by reference. All information included in the charts is presented as of March 31, 2023, and the Company does not assume any obligation to correct or update said information in the future.
The information in Items 2.02 and 7.01, as well as Exhibits 99.1 and 99.2 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release datedAprila1q2023earningsrelease.htm27, 2023, with respect to Seacoast's financial results for the quartera1q2023earningsrelease.htmendedMarch31, 2023 |
| 99.2 | Data on website containing information used in the conference call to be held onApril28, 2023 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Exhibits 99.1 and 99.2 referenced herein, contain “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, 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 or its wholly-owned banking subsidiary, Seacoast National Bank, 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.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SEACOAST BANKING CORPORATION OF FLORIDA
(Registrant)
| Dated: April 27, 2023 | /s/ Tracey L. Dexter |
|---|---|
| TRACEY L. DEXTER | |
| Chief Financial Officer |
1Q2023 Earnings Release
SEACOAST REPORTS FIRST QUARTER 2023 RESULTS
Well-Positioned $15 Billion Balance Sheet with Strong Capital and Liquidity
Strong Deposit Franchise with Granular, Longstanding Customer Base
Completes Acquisition of Professional Holding Corp.
STUART, Fla., April 27, 2023 /GLOBE NEWSWIRE/ -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the first quarter of 2023 of $11.8 million, or $0.15 per diluted share, including $17.5 million in combined merger-related costs for the acquisitions of both Drummond Banking Company (“Drummond”) and Professional Holding Corp. (“Professional”). Adjusted net income1 for the first quarter of 2023 was $29.2 million, or $0.36 per diluted share. The first quarter results included recording a day-1 provision for credit losses of $26.6 million upon the acquisition of Professional Holding Corp.
Pre-tax pre-provision earnings1 were $46.3 million in the first quarter of 2023, an increase of 1% compared to the fourth quarter of 2022 and an increase of 40% compared to the first quarter of 2022. Adjusted pre-tax pre-provision earnings1 were $71.1 million in the first quarter of 2023, an increase of 7% compared to the fourth quarter of 2022 and an increase of 70% compared to the first quarter of 2022.
Charles M. Shaffer, Seacoast's Chairman and CEO said, "Seacoast delivered another quarter of strong financial performance, with continued solid growth in pre-tax pre-provision earnings. We closed on our acquisition of Professional, increasing Seacoast’s market share in the attractive and fast-growing South Florida market.”
Shaffer added, “Recent events in the banking industry nationally emphasize the importance of Seacoast’s strong deposit franchise, disciplined credit and conservative balance sheet principles. Over our 96-year history, Seacoast has focused on executing a balanced growth strategy that emphasizes a relationship-driven approach to customer acquisition. This, in turn, has produced a granular and diverse loan portfolio and a broadly diversified and stable funding base. We today serve more than 270,000 customers in a wide variety of segments and industries, including consumers, small businesses, middle market operating companies, municipalities, and other governmental entities.”
"We have never chased transactional business and have instead, carefully constructed our balance sheet by building strong customer relationships and avoiding lending or deposit concentrations. Our relationship-focused strategy is supported by a robust balance sheet. Our common equity tier 1 ratio was 12.80% at March 31, 2023, and the ratio of tangible common equity to tangible assets was 8.4%. Even after adjusting all held-to-maturity securities to fair value, our tangible common equity to tangible assets ratio is a very strong 7.8%. Our liquidity position is also strong with a loan-to-deposit ratio of 82%, allowing balance sheet flexibility as we move forward."
"Seacoast will maintain its commitment to our fortress balance sheet, demonstrating resilience while continuing to serve our customers and generating value for our shareholders over the long term," Shaffer concluded.
Acquisitions Update
On January 31, 2023, the Company acquired Professional, the sixth largest bank headquartered in South Florida. Direct merger-related costs totaled $8.1 million, the day-1 provision for credit losses on loans was $26.6 million, and the day-1 provision for credit losses on unfunded commitments was $1.0 million. Full integration and system conversion activities are expected to be completed late in the second quarter of 2023, and merger-related expense synergies are expected to be realized starting in the third quarter of 2023.
In February 2023, we successfully completed the integration of Drummond, which was acquired in October 2022, incurring conversion-related costs of $9.5 million in the first quarter of 2023.
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.
Financial Results
Income Statement
•Net income was $11.8 million, or $0.15 per diluted share, for the first quarter of 2023 compared to net income of $23.9 million, or $0.34 per diluted share, for the prior quarter, and $20.6 million, or $0.33 per diluted share, for the prior year quarter. The first quarter 2023 results included $26.6 million in provision for credit losses on loans acquired in the Professional acquisition. Adjusted net income1 for the first quarter of 2023 was $29.2 million, or $0.36 per diluted share, compared to $39.9 million, or $0.56 per diluted share, for the prior quarter, and $27.1 million, or $0.44 per diluted share, for the prior year quarter.
•Net revenues were $153.6 million in the first quarter of 2023, an increase of $16.2 million, or 12%, compared to the prior quarter, and an increase of $61.7 million, or 67%, compared to the prior year quarter. Adjusted revenues1 were $151.4 million in the first quarter of 2023, an increase of $14.0 million, or 10%, compared to the prior quarter, and an increase of $59.0 million, or 64%, compared to the prior year quarter.
•On an adjusted basis, pre-tax pre-provision earnings1 were $71.1 million, an increase of 7% compared to the fourth quarter of 2022 and an increase of 70% compared to the first quarter of 2022.
•Net interest income totaled $131.2 million in the first quarter of 2023, an increase of $11.4 million, or 10%, from the fourth quarter of 2022 and an increase of $54.6 million, or 71%, compared to the first quarter of 2022.
•Net interest margin decreased only five basis points to 4.31% in the first quarter of 2023 compared to 4.36% in the fourth quarter of 2022. The decline in the net interest margin from the prior quarter was driven by the continued effect of an inverted yield curve, and additional excess liquidity added to the balance sheet late in the quarter. Securities yields increased eight basis points to 2.85%, and loan yields increased 57 basis points to 5.86%. The cost of deposits increased to 77 basis points for the first quarter of 2023 compared to 21 basis points in the prior quarter. The effect on net interest margin of accretion on purchase discounts on acquired loans in the first quarter of 2023 was 53 basis points, compared to 35 basis points in the fourth quarter of 2022.
•Noninterest income totaled $22.4 million in the first quarter of 2023, an increase of $4.8 million, or 27%, compared to the prior quarter, and an increase of $7.1 million, or 46%, compared to the prior year quarter. Results for the first quarter of 2023 included the following:
•Service charges on deposits increased $0.2 million, or 6%, compared to the prior quarter and $1.4 million, or 51%, year over year, reflecting the benefit of an expanded deposit base including from acquisitions.
•The wealth management division continues to demonstrate notable success in building relationships, and during the first quarter of 2023, income increased $0.2 million, or 6%, compared to the prior quarter and $0.4 million, or 15%, compared to the prior year quarter. The group added another $123 million in assets under management in the first quarter of 2023, bringing overall total assets under management to $1.5 billion, up 24% from the prior year.
•Insurance agency income increased $0.3 million, or 37% compared to the prior quarter. The Company acquired a commercial insurance agency during the fourth quarter of 2022 in conjunction with the acquisition of Drummond, adding another source of noninterest income.
•Other income increased by $3.3 million compared to the prior quarter, including $2.1 million in bank owned life insurance (“BOLI”) death benefits, an increase of $0.4 million in SBIC income, and an increase of $0.3 million in loan swap-related income. The BOLI death benefits were removed from the presentation of adjusted results.
•The provision for credit losses was $31.6 million in the first quarter of 2023, compared to $14.1 million in the fourth quarter of 2022 and $6.6 million in the first quarter of 2022. Contributing to the provision in each quarter was an increase related to loans acquired through bank acquisitions, representing $26.6 million, $15.0 million, and $5.1 million, respectively. The provision for credit losses in the first quarter of 2023 on the Professional acquisition is in line with the allowance coverage rate expected at the announcement of the transaction.
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.
•Noninterest expense was $107.5 million in the first quarter of 2023, an increase of $16.0 million, or 17%, compared to the prior quarter, and an increase of $48.6 million, or 82%, compared to the prior year quarter. The first quarter of 2023 included $17.5 million of merger-related expenses, compared to $16.1 million in the prior quarter and $6.7 million in the prior year quarter. Changes compared to the fourth quarter of 2022 included:
•Salaries and wages increased $2.2 million to $47.6 million in the first quarter of 2023. The first quarter of 2023 included $4.2 million in merger-related expenses, compared to $5.7 million in the fourth quarter of 2022. Excluding merger-related expenses, the increase in the first quarter of 2023 is the result of the net addition of branch locations and associates, as well as new bankers and operational staff associated with the acquisitions.
•Employee benefits increased $3.3 million to $8.6 million in the first quarter of 2023, reflecting higher seasonal payroll taxes, 401(k) contributions and healthcare-related costs attributed to higher headcount.
•Outsourced data processing costs increased $4.6 million to $14.6 million in the first quarter of 2023. The first quarter of 2023 included $6.6 million in merger-related expenses, compared to $2.6 million in the fourth quarter of 2022.
•Occupancy, telephone and data lines, and furniture and equipment expenses collectively increased $1.7 million to $10.3 million in the first quarter of 2023, reflecting the expansion of the footprint across Florida.
•Legal and professional fees decreased by $1.7 million to $7.5 million in the first quarter of 2023, and included $4.8 million in merger-related expenses during the first quarter of 2023 and $6.5 million in the fourth quarter of 2022.
•Amortization of intangibles increased by $2.0 million with the addition of $48.9 million in core deposit intangible assets from the acquisition of Professional. These assets will be amortized using an accelerated amortization method.
•Provision for credit losses on unfunded commitments includes $1.0 million associated with the acquisition of Professional.
•Seacoast recorded $2.7 million of income tax expense in the first quarter of 2023, compared to $7.8 million in the fourth quarter of 2022, and $5.8 million in the first quarter of 2022, with an effective tax rate of 18.6%, 24.6% and 22.1%, respectively. 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 when compared to prior quarters. Tax benefits related to stock-based compensation totaled $0.2 million in the first quarter of 2023, $0.2 million in the fourth quarter of 2022, and $0.5 million in the first quarter of 2022. The presentation of adjusted results excludes the discrete benefit associated with BOLI, and applies an incremental tax rate of 25.3% on adjusted expenses. The resulting effective tax rate on adjusted net income1 is 22.7%.
•The ratio of net adjusted noninterest expense1 to average tangible assets was 2.47% in the first quarter of 2023, compared to 2.42% in the fourth quarter of 2022 and 1.99% in the first quarter of 2022. The increase in the ratio reflects additional costs carried prior to full integration of recent acquisitions, which will occur in the second quarter of 2023. We expect the benefit of merger-related expense synergies to be fully reflected beginning in the third quarter of 2023.
•The efficiency ratio was 65.43% in the first quarter of 2023, compared to 63.39% in the fourth quarter of 2022 and 62.33% in the prior year quarter. The adjusted efficiency ratio1 was 53.10% in the first quarter of 2023, compared to 51.52% in the fourth quarter of 2022 and 54.86% in the prior year quarter. The Company continues to remain keenly focused on disciplined expense control and expects to benefit from merger-related expense synergies beginning in the third quarter of 2023.
Balance Sheet
•At March 31, 2023, the Company had total assets of $15.3 billion and total shareholders' equity of $2.1 billion. Book value per share was $24.24 on March 31, 2023, compared to $22.45 on December 31, 2022, and
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.
$22.15 on March 31, 2022. Tangible book value per share totaled $14.25 on March 31, 2023 compared to $14.69 on December 31, 2022 and $17.12 on March 31, 2022.
•Debt securities totaled $2.8 billion on March 31, 2023, an increase of $134.7 million, or 5%, compared to December 31, 2022. Debt securities include approximately $2.0 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 $738 million in securities classified as held to maturity with a fair value of $618.8 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 totaled $10.1 billion on March 31, 2023, an increase of $2.0 billion compared to December 31, 2022. The increase includes loans acquired of $2.0 billion from Professional. The Company continues to exercise a disciplined approach to lending, carefully underwriting loans to strict underwriting guidelines. Removing the loans acquired with the Professional transaction, loans outstanding increased $13 million compared to December 31, 2022.
•Loan originations were $485.2 million in the first quarter of 2023, a decrease of 25% compared to $649.2 million in the fourth quarter of 2022.
•Commercial originations were $321.7 million during the first quarter of 2023, compared to $489.6 million in the fourth quarter of 2022, and $373.0 million in the first quarter of 2022.
•Consumer originations in the first quarter of 2023 were $59.5 million, compared to $74.6 million in the fourth quarter of 2022, and $79.0 million in the first quarter of 2022.
•Residential loans originated for sale in the secondary market totaled $13.9 million in the first quarter of 2023, compared to $10.7 million in the fourth quarter of 2022, and $51.2 million in the first quarter of 2022.
•Closed residential loans retained in the portfolio totaled $90.1 million in the first quarter of 2023, compared to $74.3 million in the fourth quarter of 2022, and $175.5 million in the first quarter of 2022.
•Pipelines (loans in underwriting and approval or approved and not yet closed) totaled $364.0 million on March 31, 2023, a decrease of 20% from December 31, 2022, and a decrease of 54% from March 31, 2022.
•Commercial pipelines were $297.4 million as of March 31, 2023, a decrease of 25% from $395.7 million at December 31, 2022, and a decrease of 52% from $619.5 million at March 31, 2022. The decline in pipeline quarter over quarter was the result of the impact of higher rates on new production volumes and a more selective approach on new credit facilities given a cautious economic outlook.
•Consumer pipelines were $11.6 million as of March 31, 2023, a decrease of 68% from $36.6 million at December 31, 2022, and a decrease of 81% from $61.6 million at March 31, 2022. We expect consumer demand to be lower moving forward as a result of higher rates.
•Residential saleable pipelines were $6.6 million as of March 31, 2023, compared to $4.2 million at December 31, 2022, and $25.7 million at March 31, 2022. Retained residential pipelines were $48.4 million as of March 31, 2023, compared to $17.1 million at December 31, 2022, and $88.0 million at March 31, 2022. We have seen an increase in pipelines in residential lending during the first quarter of 2023 as a result of mortgage rates moving lower in conjunction with a declining 10-year Treasury rate.
•Total deposits were $12.3 billion as of March 31, 2023, an increase of $2.3 billion, or 23%, compared to December 31, 2022, and an increase of $3.1 billion, or 33%, compared to March 31, 2022. The increase in the first quarter of 2023 includes $2.1 billion in deposits from the acquisition of Professional.
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.
Seacoast’s granular, longstanding deposit base is a hallmark of our franchise, and in the current environment its stability serves as a significant source of strength. The Company has continued to manage deposit pricing lower than competitors, and with an average loan-to-deposit ratio of 82% during the quarter, maintains balance sheet flexibility.
•Excluding the deposits acquired through the Professional acquisition, deposits outstanding increased $295.0 million during the quarter.
•At March 31, 2023, transaction account balances represented 59% of overall deposits, which continues to aid the Company’s ability to maintain a consistently low cost of deposits.
•The overall cost of deposits increased 56 basis points from the prior quarter to 77 basis points. The increase is a result of the Professional acquisition and an increasingly competitive market for deposits.
•Noninterest bearing demand deposits represent 37% of overall deposits. This is amongst the upper quartile in the industry.
•Average deposits per banking center were $148 million at March 31, 2023 compared to $128 million at December 31, 2022.
•Net organic customer growth in the month of March 2023 was at the highest level since 2020.
•Uninsured deposits represented only 36% of overall deposit accounts. 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 32% 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 141% of uninsured deposits, and 163% of uninsured and uncollateralized deposits.
•Consumer deposits represent 40% of overall deposit funding with an average consumer customer balance of $22 thousand. Commercial deposits represent 60% of overall deposit funding with an average business customer balance of $101 thousand.
•During the first quarter of 2023, approximately $100 million in customer deposits migrated to customer sweep accounts.
•The Company increased borrowings to bolster its liquidity position during the quarter. Federal Home Loan Bank advances totaled $385.0 million at March 31, 2023 with a weighted average interest rate of 4.26%. Also during the first quarter of 2023, Seacoast assumed subordinated debt in the acquisition of Professional, with an outstanding principal amount of $25.0 million and estimated fair value of $21.1 million. The acquired debt carries a fixed interest rate of 3.375% until 2027, and thereafter converts to a floating rate note until maturity in 2032.
•In the aggregate, borrowed funds, including FHLB advances, subordinated debt, and brokered deposits represent only 6.9% of total liabilities as of March 31, 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 $50.8 million at March 31, 2023. Nonperforming loans to total loans outstanding were 0.50% at March 31, 2023, 0.35% at December 31, 2022, and 0.41% at March 31, 2022.
•Nonperforming assets to total assets increased to 0.38% at March 31, 2023, compared to 0.26% at December 31, 2022, and 0.35% at March 31, 2022. During the first quarter of 2023, $5.5 million in former branch properties were transferred into other real estate owned as a result of branch consolidation.
•The ratio of allowance for credit losses to total loans was 1.54% at March 31, 2023, 1.40% at December 31, 2022, and 1.39% at March 31, 2022. The increase in the allowance was primarily the result of the Professional acquisition and is in line with the coverage rate expected at the announcement of the transaction.
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.
•Net charge-offs of $3.2 million for the first quarter of 2023 compared to $0.8 million in the fourth quarter of 2022 and $0.1 million in the first quarter of 2022. Net charge-offs for the four most recent quarters averaged 0.05%.
•Portfolio diversification, in terms of asset mix, industry, and loan type, has been a critical element of the Company's lending strategy. Exposure across industries and collateral types is broadly distributed. Seacoast's average loan size is $289 thousand, and the average commercial loan size is $717 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 48% and 258% of total bank-level risk-based capital, respectively, compared to 45% and 230%, respectively, at December 31, 2022. On a consolidated basis, construction and land development and commercial real estate loans represent 44% 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 March 31, 2023, of 13.8% compared to 14.8% at December 31, 2022, and 16.8% at March 31, 2022. The total capital ratio was 15.0%, the common equity tier 1 capital ratio was 12.8%, and the tier 1 leverage ratio was 11.7% at March 31, 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 March 31, 2023 totaled $791.2 million.
•Our Board of Directors has approved a share repurchase program of up to $100 million in shares of the Company’s common stock. No shares were repurchased during the quarter, and 100% of the shares pursuant to the program remain available.
•The Company’s loan to deposit ratio was 82% at March 31, 2023, providing liquidity and flexibility moving forward.
•Tangible common equity to tangible assets was 8.36% at March 31, 2023, compared to 9.08% at December 31, 2022, and 9.89% at March 31, 2022. If all held-to-maturity securities were adjusted to fair value, the tangible common equity ratio would have been 7.77%.
•At March 31, 2023, in addition to $0.8 billion in cash, the Company had $5.6 billion in available borrowing capacity, including $4.6 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 March 31, 2023 represented 163% 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.
| FINANCIAL HIGHLIGHTS | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Amounts in thousands except per share data) | (Unaudited) | ||||||||||||||
| Quarterly Trends | |||||||||||||||
| 1Q'23 | 4Q'22 | 3Q'22 | 2Q'22 | 1Q'22 | |||||||||||
| Selected balance sheet data: | |||||||||||||||
| Total assets | $ | 15,255,408 | $ | 12,145,762 | $ | 10,345,235 | $ | 10,811,704 | $ | 10,904,817 | |||||
| Gross loans | 10,134,395 | 8,144,724 | 6,690,845 | 6,541,548 | 6,451,217 | ||||||||||
| Total deposits | 12,309,701 | 9,981,595 | 8,765,414 | 9,188,953 | 9,243,768 | ||||||||||
| Performance measures: | |||||||||||||||
| Net income | $ | 11,827 | $ | 23,927 | $ | 29,237 | $ | 32,755 | $ | 20,588 | |||||
| Net interest margin | 4.31 | % | 4.36 | % | 3.67 | % | 3.38 | % | 3.25 | % | |||||
| Pre-tax pre-provision earnings1 | 46,321 | 45,999 | 43,143 | 42,580 | 33,095 | ||||||||||
| Average diluted shares outstanding | 80,717 | 71,374 | 61,961 | 61,923 | 61,704 | ||||||||||
| Diluted earnings per share (EPS) | $ | 0.15 | $ | 0.34 | $ | 0.47 | $ | 0.53 | $ | 0.33 | |||||
| Return on (annualized): | |||||||||||||||
| Average assets (ROA) | 0.34 | % | 0.78 | % | 1.10 | % | 1.21 | % | 0.79 | % | |||||
| Average tangible assets (ROTA)2 | 0.52 | 0.94 | 1.17 | 1.29 | 0.85 | ||||||||||
| Average tangible common equity (ROTCE)2 | 5.96 | 10.36 | 11.53 | 13.01 | 8.02 | ||||||||||
| Tangible common equity to tangible assets2 | 8.36 | 9.08 | 9.79 | 9.74 | 9.89 | ||||||||||
| Tangible book value per share2 | $ | 14.25 | $ | 14.69 | $ | 15.98 | $ | 16.66 | $ | 17.12 | |||||
| Efficiency ratio | 65.43 | % | 63.39 | % | 57.13 | % | 56.22 | % | 62.33 | % | |||||
| Adjusted operating measures1: | |||||||||||||||
| Adjusted net income | $ | 29,241 | $ | 39,926 | $ | 32,837 | $ | 36,327 | $ | 27,056 | |||||
| Adjusted pre-tax pre-provision earnings | 71,081 | 66,649 | 48,989 | 46,397 | 41,737 | ||||||||||
| Adjusted diluted EPS | 0.36 | 0.56 | 0.53 | 0.59 | 0.44 | ||||||||||
| Adjusted ROTA2 | 0.90 | % | 1.36 | % | 1.27 | % | 1.38 | % | 1.06 | % | |||||
| Adjusted ROTCE2 | 10.34 | 15.05 | 12.48 | 13.97 | 10.01 | ||||||||||
| Adjusted efficiency ratio | 53.10 | 51.52 | 53.28 | 53.15 | 54.86 | ||||||||||
| Net adjusted noninterest expense as a<br><br>percent of average tangible assets2 | 2.47 | 2.42 | 2.16 | 2.00 | 1.99 | ||||||||||
| Other data: | |||||||||||||||
| Market capitalization3 | $ | 2,005,241 | $ | 2,233,761 | $ | 1,858,429 | $ | 2,028,996 | $ | 2,144,586 | |||||
| Full-time equivalent employees | 1,650 | 1,490 | 1,156 | 1,095 | 1,066 | ||||||||||
| Number of ATMs | 97 | 100 | 79 | 79 | 79 | ||||||||||
| Full-service banking offices | 83 | 78 | 58 | 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. |
OTHER INFORMATION
Conference Call Information
Seacoast will host a conference call April 28th, 2023 at 10:00 a.m. Eastern Time, to discuss the first quarter 2023 earnings results and business trends. Investors may call in (toll-free) by dialing (800) 949-8476. 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 $15.3 billion in assets and $12.3 billion in deposits as of March 31, 2023. Seacoast provides integrated financial services including commercial and consumer banking, wealth management, and mortgage services to customers at over 80 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 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 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 (including the velocity of loan repayment) 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 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 parties, 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 the merger with Professional Holding Corp. include, 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.
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 under "Special Cautionary Notice Regarding Forward-Looking Statements" and "Risk Factors", and otherwise in the Company’s SEC reports and filings. Such reports are
available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at www.sec.gov.
| FINANCIAL HIGHLIGHTS | (Unaudited) | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||
| Quarterly Trends | |||||||||||||||
| (Amounts in thousands, except ratios and per share data) | 1Q'23 | 4Q'22 | 3Q'22 | 2Q'22 | 1Q'22 | ||||||||||
| Summary of Earnings | |||||||||||||||
| Net income | $ | 11,827 | $ | 23,927 | $ | 29,237 | $ | 32,755 | $ | 20,588 | |||||
| Adjusted net income1 | 29,241 | 39,926 | 32,837 | 36,327 | 27,056 | ||||||||||
| Net interest income2 | 131,351 | 119,858 | 88,399 | 81,764 | 76,639 | ||||||||||
| Net interest margin2,3 | 4.31 | % | 4.36 | % | 3.67 | % | 3.38 | % | 3.25 | % | |||||
| Pre-tax pre-provision earnings1 | 46,321 | 45,999 | 43,143 | 42,580 | 33,095 | ||||||||||
| Adjusted pre-tax pre-provision earnings1 | 71,081 | 66,649 | 48,989 | 46,397 | 41,737 | ||||||||||
| Performance Ratios | |||||||||||||||
| Return on average assets-GAAP basis3 | 0.34 | % | 0.78 | % | 1.10 | % | 1.21 | % | 0.79 | % | |||||
| Return on average tangible assets-GAAP basis3,4 | 0.52 | 0.94 | 1.17 | 1.29 | 0.85 | ||||||||||
| Adjusted return on average tangible assets1,3,4 | 0.90 | 1.36 | 1.27 | 1.38 | 1.06 | ||||||||||
| Pre-tax pre-provision return on average tangible assets1,3,4 | 1.58 | 1.69 | 1.71 | 1.66 | 1.34 | ||||||||||
| Adjusted pre-tax pre-provision return on average tangible assets1,3,4 | 2.18 | 2.28 | 1.89 | 1.77 | 1.64 | ||||||||||
| Net adjusted noninterest expense to average tangible assets1,3,4 | 2.47 | 2.42 | 2.16 | 2.00 | 1.99 | ||||||||||
| Return on average shareholders' equity-GAAP basis3 | 2.53 | 6.03 | 8.60 | 9.73 | 5.96 | ||||||||||
| Return on average tangible common equity-GAAP basis3,4 | 5.96 | 10.36 | 11.53 | 13.01 | 8.02 | ||||||||||
| Adjusted return on average tangible common equity1,3,4 | 10.34 | 15.05 | 12.48 | 13.97 | 10.01 | ||||||||||
| Efficiency ratio5 | 65.43 | 63.39 | 57.13 | 56.22 | 62.33 | ||||||||||
| Adjusted efficiency ratio1 | 53.10 | 51.52 | 53.28 | 53.15 | 54.86 | ||||||||||
| Noninterest income to total revenue (excluding securities gains/losses) | 14.55 | 12.84 | 15.72 | 17.45 | 17.14 | ||||||||||
| Tangible common equity to tangible assets4 | 8.36 | 9.08 | 9.79 | 9.74 | 9.89 | ||||||||||
| Average loan-to-deposit ratio | 82.43 | 77.67 | 73.90 | 70.60 | 71.25 | ||||||||||
| End of period loan-to-deposit ratio | 82.35 | 81.63 | 76.35 | 71.34 | 70.01 | ||||||||||
| Per Share Data | |||||||||||||||
| Net income diluted-GAAP basis | $ | 0.15 | $ | 0.34 | $ | 0.47 | $ | 0.53 | $ | 0.33 | |||||
| Net income basic-GAAP basis | 0.15 | 0.34 | 0.48 | 0.53 | 0.34 | ||||||||||
| Adjusted earnings1 | 0.36 | 0.56 | 0.53 | 0.59 | 0.44 | ||||||||||
| Book value per share common | 24.24 | 22.45 | 20.95 | 21.65 | 22.15 | ||||||||||
| Tangible book value per share | 14.25 | 14.69 | 15.98 | 16.66 | 17.12 | ||||||||||
| Cash dividends declared | 0.17 | 0.17 | 0.17 | 0.17 | 0.13 | ||||||||||
| 1Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP. | |||||||||||||||
| 2Calculated on a fully taxable equivalent basis using amortized cost. | |||||||||||||||
| 3These ratios are stated on an annualized basis and are not necessarily indicative of future periods. | |||||||||||||||
| 4The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets. | |||||||||||||||
| 5Defined as noninterest expense less amortization of intangibles and gains, losses, and expenses on foreclosed properties divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains and losses). | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | (Unaudited) | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||
| Quarterly Trends | |||||||||||||||
| (Amounts in thousands, except per share data) | 1Q'23 | 4Q'22 | 3Q'22 | 2Q'22 | 1Q'22 | ||||||||||
| Interest on securities: | |||||||||||||||
| Taxable | $ | 19,244 | $ | 18,530 | $ | 15,653 | $ | 12,387 | $ | 10,041 | |||||
| Nontaxable | 105 | 130 | 138 | 138 | 140 | ||||||||||
| Interest and fees on loans | 135,168 | 105,322 | 73,970 | 69,307 | 67,118 | ||||||||||
| Interest on federal funds sold and other investments | 3,474 | 3,127 | 1,643 | 1,917 | 933 | ||||||||||
| Total Interest Income | 157,991 | 127,109 | 91,404 | 83,749 | 78,232 | ||||||||||
| Interest on deposits | 16,033 | 3,934 | 1,623 | 994 | 767 | ||||||||||
| Interest on time certificates | 5,552 | 1,358 | 380 | 436 | 468 | ||||||||||
| Interest on borrowed money | 5,254 | 2,108 | 1,117 | 672 | 475 | ||||||||||
| Total Interest Expense | 26,839 | 7,400 | 3,120 | 2,102 | 1,710 | ||||||||||
| Net Interest Income | 131,152 | 119,709 | 88,284 | 81,647 | 76,522 | ||||||||||
| Provision for credit losses | 31,598 | 14,129 | 4,676 | 822 | 6,556 | ||||||||||
| Net Interest Income After Provision for Credit Losses | 99,554 | 105,580 | 83,608 | 80,825 | 69,966 | ||||||||||
| Noninterest income: | |||||||||||||||
| Service charges on deposit accounts | 4,242 | 3,996 | 3,504 | 3,408 | 2,801 | ||||||||||
| Interchange income | 4,694 | 4,650 | 4,138 | 4,255 | 4,128 | ||||||||||
| Wealth management income | 3,063 | 2,886 | 2,732 | 2,774 | 2,659 | ||||||||||
| Mortgage banking fees | 426 | 426 | 434 | 932 | 1,686 | ||||||||||
| Insurance agency income | 1,101 | 805 | — | — | — | ||||||||||
| SBA gains | 322 | 105 | 108 | 473 | 156 | ||||||||||
| BOLI income | 1,916 | 1,526 | 1,363 | 1,349 | 1,334 | ||||||||||
| Other | 6,574 | 3,239 | 4,186 | 4,073 | 3,061 | ||||||||||
| 22,338 | 17,633 | 16,465 | 17,264 | 15,825 | |||||||||||
| Securities gains (losses), net | 107 | 18 | (362) | (300) | (452) | ||||||||||
| Total Noninterest Income | 22,445 | 17,651 | 16,103 | 16,964 | 15,373 | ||||||||||
| Noninterest expenses: | |||||||||||||||
| Salaries and wages | 47,616 | 45,405 | 28,420 | 28,056 | 28,219 | ||||||||||
| Employee benefits | 8,562 | 5,300 | 4,074 | 4,151 | 5,501 | ||||||||||
| Outsourced data processing costs | 14,553 | 9,918 | 5,393 | 6,043 | 6,156 | ||||||||||
| Telephone / data lines | 1,081 | 1,185 | 973 | 908 | 733 | ||||||||||
| Occupancy | 6,938 | 5,457 | 5,046 | 4,050 | 3,986 | ||||||||||
| Furniture and equipment | 2,267 | 1,944 | 1,462 | 1,588 | 1,426 | ||||||||||
| Marketing | 2,238 | 1,772 | 1,461 | 1,882 | 1,171 | ||||||||||
| Legal and professional fees | 7,479 | 9,174 | 3,794 | 2,946 | 4,789 | ||||||||||
| FDIC assessments | 1,443 | 889 | 760 | 699 | 789 | ||||||||||
| Amortization of intangibles | 6,727 | 4,763 | 1,446 | 1,446 | 1,446 | ||||||||||
| Foreclosed property expense and net loss (gain) on sale | 195 | (411) | 9 | (968) | (164) | ||||||||||
| Provision for credit losses on unfunded commitments | 1,239 | — | 1,015 | — | 142 | ||||||||||
| Other | 7,137 | 6,114 | 7,506 | 5,347 | 4,723 | ||||||||||
| Total Noninterest Expense | 107,475 | 91,510 | 61,359 | 56,148 | 58,917 | ||||||||||
| Income Before Income Taxes | 14,524 | 31,721 | 38,352 | 41,641 | 26,422 | ||||||||||
| Income taxes | 2,697 | 7,794 | 9,115 | 8,886 | 5,834 | ||||||||||
| Net Income | $ | 11,827 | $ | 23,927 | $ | 29,237 | $ | 32,755 | $ | 20,588 | |||||
| Per share of common stock: | |||||||||||||||
| Net income diluted | $ | 0.15 | $ | 0.34 | $ | 0.47 | $ | 0.53 | $ | 0.33 | |||||
| Net income basic | 0.15 | 0.34 | 0.48 | 0.53 | 0.34 | ||||||||||
| Cash dividends declared | 0.17 | 0.17 | 0.17 | 0.17 | 0.13 | ||||||||||
| Average diluted shares outstanding | 80,717 | 71,374 | 61,961 | 61,923 | 61,704 | ||||||||||
| Average basic shares outstanding | 80,151 | 70,770 | 61,442 | 61,409 | 61,127 | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | (Unaudited) | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
| (Amounts in thousands) | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||
| Assets | |||||||||||||||
| Cash and due from banks | $ | 180,607 | $ | 120,748 | $ | 176,463 | $ | 363,343 | $ | 351,128 | |||||
| Interest bearing deposits with other banks | 610,636 | 81,192 | 42,152 | 538,025 | 871,387 | ||||||||||
| Total Cash and Cash Equivalents | 791,243 | 201,940 | 218,615 | 901,368 | 1,222,515 | ||||||||||
| Time deposits with other banks | 3,236 | 3,236 | 4,481 | 4,730 | 5,975 | ||||||||||
| Debt Securities: | |||||||||||||||
| Available for sale (at fair value) | 2,015,967 | 1,871,742 | 1,860,734 | 1,800,791 | 1,706,619 | ||||||||||
| Held to maturity (at amortized cost) | 737,911 | 747,408 | 774,706 | 794,785 | 747,004 | ||||||||||
| Total Debt Securities | 2,753,878 | 2,619,150 | 2,635,440 | 2,595,576 | 2,453,623 | ||||||||||
| Loans held for sale | 2,838 | 3,151 | 1,620 | 14,205 | 20,615 | ||||||||||
| Loans | 10,134,395 | 8,144,724 | 6,690,845 | 6,541,548 | 6,451,217 | ||||||||||
| Less: Allowance for credit losses | (155,640) | (113,895) | (95,329) | (90,769) | (89,838) | ||||||||||
| Net Loans | 9,978,755 | 8,030,829 | 6,595,516 | 6,450,779 | 6,361,379 | ||||||||||
| Bank premises and equipment, net | 116,522 | 116,892 | 81,648 | 74,784 | 74,617 | ||||||||||
| Other real estate owned | 7,756 | 2,301 | 2,419 | 2,419 | 11,567 | ||||||||||
| Goodwill | 728,396 | 480,319 | 286,606 | 286,606 | 286,606 | ||||||||||
| Other intangible assets, net | 117,409 | 75,451 | 18,583 | 20,062 | 21,549 | ||||||||||
| Bank owned life insurance | 292,545 | 237,824 | 209,087 | 207,724 | 206,375 | ||||||||||
| Net deferred tax assets | 124,301 | 94,457 | 83,139 | 60,080 | 47,222 | ||||||||||
| Other assets | 338,529 | 280,212 | 208,081 | 193,371 | 192,774 | ||||||||||
| Total Assets | $ | 15,255,408 | $ | 12,145,762 | $ | 10,345,235 | $ | 10,811,704 | $ | 10,904,817 | |||||
| Liabilities and Shareholders' Equity | |||||||||||||||
| Liabilities | |||||||||||||||
| Deposits | |||||||||||||||
| Noninterest demand | $ | 4,554,509 | $ | 4,070,973 | $ | 3,529,489 | $ | 3,593,201 | $ | 3,522,700 | |||||
| Interest-bearing demand | 2,676,320 | 2,337,590 | 2,170,251 | 2,269,148 | 2,253,562 | ||||||||||
| Savings | 940,702 | 1,064,392 | 938,081 | 946,738 | 937,839 | ||||||||||
| Money market | 2,893,128 | 1,985,974 | 1,700,737 | 1,911,847 | 1,999,027 | ||||||||||
| Other time certificates | 598,483 | 369,389 | 312,840 | 350,571 | 397,491 | ||||||||||
| Brokered time certificates | 371,392 | 3,798 | — | — | — | ||||||||||
| Time certificates of more than $250,000 | 275,167 | 149,479 | 114,016 | 117,448 | 133,149 | ||||||||||
| Total Deposits | 12,309,701 | 9,981,595 | 8,765,414 | 9,188,953 | 9,243,768 | ||||||||||
| Securities sold under agreements to repurchase | 267,606 | 172,029 | 94,191 | 110,578 | 120,922 | ||||||||||
| Federal Home Loan Bank borrowings | 385,000 | 150,000 | — | — | — | ||||||||||
| Subordinated debt, net | 105,804 | 84,533 | 71,857 | 71,786 | 71,716 | ||||||||||
| Other liabilities | 136,213 | 149,830 | 125,971 | 110,812 | 112,126 | ||||||||||
| Total Liabilities | 13,204,324 | 10,537,987 | 9,057,433 | 9,482,129 | 9,548,532 | ||||||||||
| Shareholders' Equity | |||||||||||||||
| Common stock | 8,461 | 7,162 | 6,148 | 6,141 | 6,124 | ||||||||||
| Additional paid in capital | 1,803,898 | 1,377,802 | 1,068,241 | 1,065,167 | 1,062,462 | ||||||||||
| Retained earnings | 421,271 | 423,863 | 412,166 | 393,431 | 371,192 | ||||||||||
| Treasury stock | (13,113) | (13,019) | (11,539) | (11,632) | (10,459) | ||||||||||
| 2,220,517 | 1,795,808 | 1,475,016 | 1,453,107 | 1,429,319 | |||||||||||
| Accumulated other comprehensive (loss) income, net | (169,433) | (188,033) | (187,214) | (123,532) | (73,034) | ||||||||||
| Total Shareholders' Equity | 2,051,084 | 1,607,775 | 1,287,802 | 1,329,575 | 1,356,285 | ||||||||||
| Total Liabilities & Shareholders' Equity | $ | 15,255,408 | $ | 12,145,762 | $ | 10,345,235 | $ | 10,811,704 | $ | 10,904,817 | |||||
| Common shares outstanding | 84,609 | 71,618 | 61,476 | 61,410 | 61,239 | ||||||||||
| CONSOLIDATED QUARTERLY FINANCIAL DATA | (Unaudited) | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||
| (Amounts in thousands) | 4Q'22 | 3Q'22 | 2Q'22 | 1Q'22 | |||||||||||
| Credit Analysis | |||||||||||||||
| Net charge-offs (recoveries) | 3,188 | $ | 782 | $ | 103 | $ | (124) | $ | 79 | ||||||
| Net charge-offs (recoveries) to average loans | % | 0.04 | % | 0.01 | % | — | % | — | % | ||||||
| Allowance for Credit Losses | 113,895 | 95,329 | 90,769 | 89,838 | |||||||||||
| Non-acquired loans at end of period | 5,944,194 | 5,653,357 | 5,399,923 | 5,199,110 | |||||||||||
| Acquired loans at end of period | 2,200,530 | 1,037,488 | 1,141,625 | 1,252,107 | |||||||||||
| Total Loans | 10,134,395 | $ | 8,144,724 | $ | 6,690,845 | $ | 6,541,548 | $ | 6,451,217 | ||||||
| Total allowance for credit losses to total loans at end of period | 1.40 | 1.42 | 1.39 | 1.39 | |||||||||||
| Purchase discount on acquired loans at end of period | 4.25 | 1.81 | 1.84 | 1.89 | |||||||||||
| End of Period | |||||||||||||||
| Nonperforming loans | 50,787 | $ | 28,843 | $ | 21,464 | $ | 26,442 | $ | 26,209 | ||||||
| Other real estate owned | 530 | 109 | 109 | 9,256 | |||||||||||
| Properties previously used in bank operations included in other real estate owned | 1,771 | 2,310 | 2,310 | 2,310 | |||||||||||
| Total Nonperforming Assets | 58,543 | $ | 31,144 | $ | 23,883 | $ | 28,861 | $ | 37,775 | ||||||
| Nonperforming Loans to Loans at End of Period | % | 0.35 | % | 0.32 | % | 0.40 | % | 0.41 | % | ||||||
| Nonperforming Assets to Total Assets at End of Period | 0.26 | 0.23 | 0.27 | 0.35 | |||||||||||
| December 31, | September 30, | June 30, | March 31, | ||||||||||||
| Loans | 2022 | 2022 | 2022 | 2022 | |||||||||||
| Construction and land development | 757,835 | $ | 587,332 | $ | 361,913 | $ | 350,025 | $ | 259,421 | ||||||
| Commercial real estate - owner occupied | 1,478,302 | 1,253,459 | 1,254,343 | 1,284,515 | |||||||||||
| Commercial real estate - non-owner occupied 1 | 2,589,774 | 2,107,614 | 1,972,540 | 1,966,150 | |||||||||||
| Residential real estate 1 | 1,849,503 | 1,599,765 | 1,647,465 | 1,599,645 | |||||||||||
| Commercial and financial | 1,348,636 | 1,182,384 | 1,124,771 | 1,132,506 | |||||||||||
| Consumer | 286,587 | 180,416 | 175,201 | 169,724 | |||||||||||
| Paycheck Protection Program | 4,590 | 5,294 | 17,203 | 39,256 | |||||||||||
| Total Loans | 10,134,395 | $ | 8,144,724 | $ | 6,690,845 | $ | 6,541,548 | $ | 6,451,217 | ||||||
| 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." |
All values are in US Dollars.
| AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1 | (Unaudited) | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | ||||||||||||||||||
| 1Q'23 | 4Q'22 | 1Q'22 | ||||||||||||||||
| Average | Yield/ | Average | Yield/ | Average | Yield/ | |||||||||||||
| (Amounts in thousands) | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||
| Assets | ||||||||||||||||||
| Earning assets: | ||||||||||||||||||
| Securities: | ||||||||||||||||||
| Taxable | $ | 2,700,122 | $ | 19,244 | 2.85 | % | $ | 2,680,813 | $ | 18,530 | 2.76 | % | $ | 2,406,399 | $ | 10,041 | 1.67 | % |
| Nontaxable | 16,271 | 131 | 3.22 | 20,246 | 164 | 3.24 | 24,042 | 177 | 2.94 | |||||||||
| Total Securities | 2,716,393 | 19,375 | 2.85 | 2,701,059 | 18,694 | 2.77 | 2,430,441 | 10,218 | 1.68 | |||||||||
| Federal funds sold | 106,778 | 1,294 | 4.91 | 155,815 | 1,410 | 3.59 | 738,588 | 350 | 0.19 | |||||||||
| Interest bearing deposits with other banks and other investments | 178,463 | 2,180 | 4.95 | 141,179 | 1,717 | 4.83 | 44,999 | 583 | 5.25 | |||||||||
| Loans excluding PPP loans | 9,363,873 | 135,329 | 5.86 | 7,905,843 | 105,398 | 5.29 | 6,276,964 | 65,675 | 4.24 | |||||||||
| PPP loans | 5,328 | 12 | 0.91 | 4,886 | 39 | 3.19 | 61,923 | 1,523 | 9.98 | |||||||||
| Total Loans | 9,369,201 | 135,341 | 5.86 | 7,910,729 | 105,437 | 5.29 | 6,338,887 | 67,198 | 4.30 | |||||||||
| Total Earning Assets | 12,370,835 | 158,190 | 5.19 | 10,908,782 | 127,258 | 4.63 | 9,552,915 | 78,349 | 3.33 | |||||||||
| Allowance for credit losses | (139,989) | (109,509) | (87,467) | |||||||||||||||
| Cash and due from banks | 156,235 | 137,839 | 365,835 | |||||||||||||||
| Premises and equipment | 116,083 | 115,095 | 75,876 | |||||||||||||||
| Intangible assets | 750,694 | 521,412 | 304,321 | |||||||||||||||
| Bank owned life insurance | 274,517 | 237,062 | 205,500 | |||||||||||||||
| Other assets including deferred tax assets | 419,601 | 329,175 | 211,536 | |||||||||||||||
| Total Assets | $ | 13,947,976 | $ | 12,139,856 | $ | 10,628,516 | ||||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| Interest-bearing demand | $ | 2,452,113 | $ | 3,207 | 0.53 | % | $ | 2,303,324 | $ | 1,859 | 0.32 | % | $ | 2,097,383 | $ | 190 | 0.04 | % |
| Savings | 1,053,220 | 400 | 0.15 | 1,126,540 | 203 | 0.07 | 925,348 | 65 | 0.03 | |||||||||
| Money market | 2,713,224 | 12,426 | 1.86 | 1,980,870 | 1,872 | 0.37 | 1,976,660 | 512 | 0.11 | |||||||||
| Time deposits | 812,422 | 5,552 | 2.77 | 500,441 | 1,358 | 1.08 | 560,681 | 468 | 0.34 | |||||||||
| Securities sold under agreements to repurchase | 173,498 | 864 | 2.02 | 134,709 | 544 | 1.60 | 118,146 | 39 | 0.13 | |||||||||
| Federal Home Loan Bank borrowings | 282,444 | 2,776 | 3.99 | 40,712 | 330 | 3.22 | — | — | — | |||||||||
| Subordinated debt | 98,425 | 1,614 | 6.65 | 83,534 | 1,234 | 5.86 | 71,670 | 436 | 2.47 | |||||||||
| Total Interest-Bearing Liabilities | 7,585,346 | 26,839 | 1.43 | 6,170,130 | 7,400 | 0.48 | 5,749,888 | 1,710 | 0.12 | |||||||||
| Noninterest demand | 4,334,969 | 4,273,922 | 3,336,121 | |||||||||||||||
| Other liabilities | 130,616 | 122,100 | 141,972 | |||||||||||||||
| Total Liabilities | 12,050,931 | 10,566,152 | 9,227,981 | |||||||||||||||
| Shareholders' equity | 1,897,045 | 1,573,704 | 1,400,535 | |||||||||||||||
| Total Liabilities & Equity | $ | 13,947,976 | $ | 12,139,856 | $ | 10,628,516 | ||||||||||||
| Cost of deposits | 0.77 | % | 0.21 | % | 0.06 | % | ||||||||||||
| Interest expense as a % of earning assets | 0.88 | % | 0.27 | % | 0.07 | % | ||||||||||||
| Net interest income as a % of earning assets | $ | 131,351 | 4.31 | % | $ | 119,858 | 4.36 | % | $ | 76,639 | 3.25 | % | ||||||
| 1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost. | ||||||||||||||||||
| Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances. | ||||||||||||||||||
| CONSOLIDATED QUARTERLY FINANCIAL DATA | (Unaudited) | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | ||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||
| (Amounts in thousands) | 2023 | 2022 | 2022 | 2022 | 2022 | |||||||||||||
| Customer Relationship Funding | ||||||||||||||||||
| Noninterest demand | ||||||||||||||||||
| Commercial | $ | 3,622,441 | $ | 3,148,778 | $ | 2,827,591 | $ | 2,945,445 | $ | 2,939,595 | ||||||||
| Retail | 673,686 | 764,274 | 447,848 | 464,214 | 458,809 | |||||||||||||
| Public funds | 194,977 | 112,553 | 210,662 | 143,075 | 86,419 | |||||||||||||
| Other | 63,405 | 45,368 | 43,388 | 40,467 | 37,877 | |||||||||||||
| Total Noninterest Demand | 4,554,509 | 4,070,973 | 3,529,489 | 3,593,201 | 3,522,700 | |||||||||||||
| Interest-bearing demand | ||||||||||||||||||
| Commercial | 1,233,845 | 886,894 | 759,286 | 769,948 | 610,109 | |||||||||||||
| Retail | 1,209,664 | 1,191,192 | 1,199,112 | 1,207,698 | 1,392,490 | |||||||||||||
| Brokered | 44,474 | 54,777 | 81,799 | — | — | |||||||||||||
| Public funds | 188,337 | 204,727 | 130,054 | 291,502 | 250,963 | |||||||||||||
| Total Interest-Bearing Demand | 2,676,320 | 2,337,590 | 2,170,251 | 2,269,148 | 2,253,562 | |||||||||||||
| Total transaction accounts | ||||||||||||||||||
| Commercial | 4,856,286 | 4,035,672 | 3,586,877 | 3,715,393 | 3,549,704 | |||||||||||||
| Retail | 1,883,350 | 1,955,466 | 1,646,960 | 1,671,912 | 1,851,299 | |||||||||||||
| Brokered | 44,474 | 54,777 | 81,799 | — | — | |||||||||||||
| Public funds | 383,314 | 317,280 | 340,716 | 434,577 | 337,382 | |||||||||||||
| Other | 63,405 | 45,368 | 43,388 | 40,467 | 37,877 | |||||||||||||
| Total Transaction Accounts | 7,230,829 | 6,408,563 | 5,699,740 | 5,862,349 | 5,776,262 | |||||||||||||
| Savings | ||||||||||||||||||
| Commercial | 108,023 | 91,943 | 71,807 | 70,090 | 68,909 | |||||||||||||
| Retail | 832,679 | 972,449 | 866,274 | 876,648 | 868,930 | |||||||||||||
| Total Savings | 940,702 | 1,064,392 | 938,081 | 946,738 | 937,839 | |||||||||||||
| Money market | ||||||||||||||||||
| Commercial | 1,542,220 | 932,518 | 788,009 | 819,452 | 856,117 | |||||||||||||
| Retail | 1,279,712 | 984,561 | 857,914 | 914,918 | 931,702 | |||||||||||||
| Brokered | — | — | — | 106,823 | 126,168 | |||||||||||||
| Public funds | 71,196 | 68,895 | 54,814 | 70,654 | 85,040 | |||||||||||||
| Total Money Market | 2,893,128 | 1,985,974 | 1,700,737 | 1,911,847 | 1,999,027 | |||||||||||||
| Brokered time certificates | 371,392 | 3,798 | — | — | — | |||||||||||||
| Other time certificates | 873,650 | 518,868 | 426,856 | 468,019 | 530,640 | |||||||||||||
| 1,245,042 | 522,666 | 426,856 | 468,019 | 530,640 | ||||||||||||||
| Total Deposits | $ | 12,309,701 | $ | 9,981,595 | $ | 8,765,414 | $ | 9,188,953 | $ | 9,243,768 | ||||||||
| Customer sweep accounts | $ | 267,606 | $ | 172,029 | $ | 94,191 | $ | 110,578 | $ | 120,922 |
Explanation of Certain Unaudited Non-GAAP Financial Measures
This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance. The Company believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance and if not provided would be requested by the investor community. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might define or calculate these measures differently. The Company provides reconciliations between GAAP and these non-GAAP measures. These disclosures should not be considered an alternative to GAAP.
| GAAP TO NON-GAAP RECONCILIATION | (Unaudited) | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||
| Quarterly Trends | |||||||||||||||
| (Amounts in thousands, except per share data) | 1Q'23 | 4Q'22 | 3Q'22 | 2Q'22 | 1Q'22 | ||||||||||
| Net Income | $ | 11,827 | $ | 23,927 | $ | 29,237 | $ | 32,755 | $ | 20,588 | |||||
| Total noninterest income | 22,445 | 17,651 | 16,103 | 16,964 | 15,373 | ||||||||||
| Securities losses (gains), net | (107) | (18) | 362 | 300 | 452 | ||||||||||
| BOLI benefits on death (included in other income) | (2,117) | — | — | — | — | ||||||||||
| Total Adjustments to Noninterest Income | (2,224) | (18) | 362 | 300 | 452 | ||||||||||
| Total Adjusted Noninterest Income | 20,221 | 17,633 | 16,465 | 17,264 | 15,825 | ||||||||||
| Total noninterest expense | 107,475 | 91,510 | 61,359 | 56,148 | 58,917 | ||||||||||
| Salaries and wages | (4,240) | (5,680) | — | (652) | (2,953) | ||||||||||
| Outsourced data processing costs | (6,551) | (2,582) | — | (420) | (632) | ||||||||||
| Legal and professional fees | (4,789) | (6,485) | (1,791) | (1,381) | (2,883) | ||||||||||
| Other categories | (1,952) | (1,393) | (263) | (586) | (224) | ||||||||||
| Total merger related charges | (17,532) | (16,140) | (2,054) | (3,039) | (6,692) | ||||||||||
| Amortization of intangibles | (6,727) | (4,763) | (1,446) | (1,446) | (1,446) | ||||||||||
| Branch reductions and other expense initiatives | (1,291) | (176) | (960) | — | (74) | ||||||||||
| Total Adjustments to Noninterest Expense | (25,550) | (21,079) | (4,460) | (4,485) | (8,212) | ||||||||||
| Total Adjusted Noninterest Expense | 81,925 | 70,431 | 56,899 | 51,663 | 50,705 | ||||||||||
| Income Taxes | 2,697 | 7,794 | 9,115 | 8,886 | 5,834 | ||||||||||
| Tax effect of adjustments | 5,912 | 5,062 | 1,222 | 1,213 | 2,196 | ||||||||||
| Adjusted Income Taxes | 8,609 | 12,856 | 10,337 | 10,099 | 8,030 | ||||||||||
| Adjusted Net Income | $ | 29,241 | $ | 39,926 | $ | 32,837 | $ | 36,327 | $ | 27,056 | |||||
| Earnings per diluted share, as reported | $ | 0.15 | $ | 0.34 | $ | 0.47 | $ | 0.53 | $ | 0.33 | |||||
| Adjusted Earnings per Diluted Share | 0.36 | 0.56 | 0.53 | 0.59 | 0.44 | ||||||||||
| Average diluted shares outstanding | 80,717 | 71,374 | 61,961 | 61,923 | 61,704 | ||||||||||
| Adjusted Noninterest Expense | $ | 81,925 | $ | 70,431 | $ | 56,899 | $ | 51,663 | $ | 50,705 | |||||
| Provision for credit losses on unfunded commitments | (1,239) | — | (1,015) | — | (142) | ||||||||||
| Foreclosed property expense and net loss (gain) on sale | (195) | 411 | (9) | 968 | 164 | ||||||||||
| Net Adjusted Noninterest Expense | $ | 80,491 | $ | 70,842 | $ | 55,875 | $ | 52,631 | $ | 50,727 | |||||
| Revenue | $ | 153,597 | $ | 137,360 | $ | 104,387 | $ | 98,611 | $ | 91,895 | |||||
| Total Adjustments to Revenue | (2,224) | (18) | 362 | 300 | 452 | ||||||||||
| Impact of FTE adjustment | 199 | 149 | 115 | 117 | 117 | ||||||||||
| Adjusted Revenue on a fully taxable equivalent basis | $ | 151,572 | $ | 137,491 | $ | 104,864 | $ | 99,028 | $ | 92,464 | |||||
| Adjusted Efficiency Ratio | 53.10 | % | 51.52 | % | 53.28 | % | 53.15 | % | 54.86 | % | |||||
| Net Interest Income | $ | 131,152 | $ | 119,709 | $ | 88,284 | $ | 81,647 | $ | 76,522 | |||||
| Impact of FTE adjustment | 199 | 149 | 115 | 117 | 117 | ||||||||||
| Net Interest Income including FTE adjustment | $ | 131,351 | $ | 119,858 | $ | 88,399 | $ | 81,764 | $ | 76,639 | |||||
| Total noninterest income | 22,445 | 17,651 | 16,103 | 16,964 | 15,373 | ||||||||||
| Total noninterest expense | 107,475 | 91,510 | 61,359 | 56,148 | 58,917 | ||||||||||
| Pre-Tax Pre-Provision Earnings | $ | 46,321 | $ | 45,999 | $ | 43,143 | $ | 42,580 | $ | 33,095 | |||||
| Total Adjustments to Noninterest Income | (2,224) | (18) | 362 | 300 | 452 | ||||||||||
| Total Adjustments to Noninterest Expense | (26,984) | (20,668) | (5,484) | (3,517) | (8,190) | ||||||||||
| Adjusted Pre-Tax Pre-Provision Earnings | $ | 71,081 | $ | 66,649 | $ | 48,989 | $ | 46,397 | $ | 41,737 | |||||
| Average Assets | $ | 13,947,976 | $ | 12,139,856 | $ | 10,585,338 | $ | 10,840,518 | $ | 10,628,516 | |||||
| Less average goodwill and intangible assets | (750,694) | (521,412) | (305,935) | (307,411) | (304,321) | ||||||||||
| Average Tangible Assets | $ | 13,197,282 | $ | 11,618,444 | $ | 10,279,403 | $ | 10,533,107 | $ | 10,324,195 | |||||
| GAAP TO NON-GAAP RECONCILIATION | (Unaudited) | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||
| Quarterly Trends | |||||||||||||||
| (Amounts in thousands, except per share data) | 1Q'23 | 4Q'22 | 3Q'22 | 2Q'22 | 1Q'22 | ||||||||||
| Return on Average Assets (ROA) | 0.34 | % | 0.78 | % | 1.10 | % | 1.21 | % | 0.79 | % | |||||
| Impact of removing average intangible assets and related amortization | 0.18 | 0.16 | 0.07 | 0.08 | 0.06 | ||||||||||
| Return on Average Tangible Assets (ROTA) | 0.52 | 0.94 | 1.17 | 1.29 | 0.85 | ||||||||||
| Impact of other adjustments for Adjusted Net Income | 0.38 | 0.42 | 0.10 | 0.09 | 0.21 | ||||||||||
| Adjusted Return on Average Tangible Assets | 0.90 | 1.36 | 1.27 | 1.38 | 1.06 | ||||||||||
| Pre-Tax Pre-Provision return on Average Tangible Assets | 1.58 | % | 1.69 | % | 1.71 | % | 1.66 | % | 1.34 | % | |||||
| Impact of adjustments on Pre-Tax Pre-Provision earnings | 0.60 | 0.59 | 0.18 | 0.11 | 0.30 | ||||||||||
| Adjusted Pre-Tax Pre-Provision Return on Tangible Assets | 2.18 | 2.28 | 1.89 | 1.77 | 1.64 | ||||||||||
| Average Shareholders' Equity | $ | 1,897,045 | $ | 1,573,704 | $ | 1,349,475 | $ | 1,350,568 | $ | 1,400,535 | |||||
| Less average goodwill and intangible assets | (750,694) | (521,412) | (305,935) | (307,411) | (304,321) | ||||||||||
| Average Tangible Equity | $ | 1,146,351 | $ | 1,052,292 | $ | 1,043,540 | $ | 1,043,157 | $ | 1,096,214 | |||||
| Return on Average Shareholders' Equity | 2.53 | % | 6.03 | % | 8.60 | % | 9.73 | % | 5.96 | % | |||||
| Impact of removing average intangible assets and related amortization | 3.43 | 4.33 | 2.93 | 3.28 | 2.06 | ||||||||||
| Return on Average Tangible Common Equity (ROTCE) | 5.96 | 10.36 | 11.53 | 13.01 | 8.02 | ||||||||||
| Impact of other adjustments for Adjusted Net Income | 4.38 | 4.69 | 0.95 | 0.96 | 1.99 | ||||||||||
| Adjusted Return on Average Tangible Common Equity | 10.34 | 15.05 | 12.48 | 13.97 | 10.01 | ||||||||||
| Loan interest income1 | $ | 135,341 | $ | 105,437 | $ | 74,050 | $ | 69,388 | $ | 67,198 | |||||
| Accretion on acquired loans | (15,942) | (9,710) | (2,242) | (2,720) | (3,717) | ||||||||||
| Loan interest income excluding accretion on acquired loans | $ | 119,399 | $ | 95,727 | $ | 71,808 | $ | 66,668 | $ | 63,481 | |||||
| Yield on loans1 | 5.86 | 5.29 | 4.45 | 4.29 | 4.30 | ||||||||||
| Impact of accretion on acquired loans | (0.69) | (0.49) | (0.14) | (0.16) | (0.24) | ||||||||||
| Yield on loans excluding accretion on acquired loans | 5.17 | % | 4.80 | % | 4.31 | % | 4.13 | % | 4.06 | % | |||||
| Net Interest Income1 | $ | 131,351 | $ | 119,858 | $ | 88,399 | $ | 81,764 | $ | 76,639 | |||||
| Accretion on acquired loans | (15,942) | (9,710) | (2,242) | (2,720) | (3,717) | ||||||||||
| Net interest income excluding accretion on acquired loans | $ | 115,409 | $ | 110,148 | $ | 86,157 | $ | 79,044 | $ | 72,922 | |||||
| Net Interest Margin | 4.31 | 4.36 | 3.67 | 3.38 | 3.25 | ||||||||||
| Impact of accretion on acquired loans | (0.53) | (0.35) | (0.09) | (0.12) | (0.15) | ||||||||||
| Net interest margin excluding accretion on acquired loans | 3.78 | % | 4.01 | % | 3.58 | % | 3.26 | % | 3.10 | % | |||||
| Security interest income1 | $ | 19,375 | $ | 18,694 | $ | 15,827 | $ | 12,562 | $ | 10,218 | |||||
| Tax equivalent adjustment on securities | (26) | (34) | (35) | (36) | (37) | ||||||||||
| Security interest income excluding tax equivalent adjustment | $ | 19,349 | $ | 18,660 | $ | 15,792 | $ | 12,526 | $ | 10,181 | |||||
| Loan interest income1 | $ | 135,341 | $ | 105,437 | $ | 74,050 | $ | 69,388 | $ | 67,198 | |||||
| Tax equivalent adjustment on loans | (173) | (115) | (80) | (81) | (80) | ||||||||||
| Loan interest income excluding tax equivalent adjustment | $ | 135,168 | $ | 105,322 | $ | 73,970 | $ | 69,307 | $ | 67,118 | |||||
| Net Interest Income1 | $ | 131,351 | $ | 119,858 | $ | 88,399 | $ | 81,764 | $ | 76,639 | |||||
| Tax equivalent adjustment on securities | (26) | (34) | (35) | (36) | (37) | ||||||||||
| Tax equivalent adjustment on loans | (173) | (115) | (80) | (81) | (80) | ||||||||||
| Net interest income excluding tax equivalent adjustment | $ | 131,152 | $ | 119,709 | $ | 88,284 | $ | 81,647 | $ | 76,522 | |||||
| 1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost. |
sbcf1q2023earningspresen
EARNINGS PRESENTATION FIRST QUARTER 2023 2023
2FIRST QUARTER 2023 EARNINGS PRESENTATION This presentation 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, 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 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 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 (including the velocity of loan repayment) 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 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 the merger with Professional Holding Corp. include, 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. 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 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. Cautionary Notice Regarding Forward-Looking Statements
3FIRST QUARTER 2023 EARNINGS PRESENTATION • $15.3 billion in assets as of March 31, 2023, operating in the nation’s fastest growing and third most populated state • Strong presence in Florida’s most attractive markets ▪ #1 Florida-based bank in Orlando MSA ▪ #1 Florida-based bank in Palm Beach county ▪ #1 market share in Port St. Lucie MSA ▪ #2 Florida-based bank in St. Petersburg • A top three publicly traded community bank headquartered in Florida • Market Cap: $2.0 billion as of March 31, 2023 • Serving over 270,000 customers throughout Florida, with a wide variety of customer segments and industries • Strong capital position, supporting further organic growth and opportunistic acquisitions • Unique customer analytics capabilities, driving value creation with new, acquired, and existing customers Jacksonville MSA West Palm Beach Fort Lauderdale Miami MSA Port St. Lucie MSA Orlando MSA Tampa St. Petersburg MSA Naples Fort Myers MSA Valuable Florida Franchise with Strong Capital and Liquidity SEACOAST BANK FOOTPRINT
4FIRST QUARTER 2023 EARNINGS PRESENTATION • Pre-tax pre-provision earnings1 increased 1% to $46.3 million. On an adjusted basis, pre-tax pre-provision earnings1 increased 7% to $71.1 million. • Pre-tax pre-provision return on average tangible assets1 of 1.58%. Adjusted pre-tax pre-provision return on average tangible assets1 of 2.18%. • Net interest income expanded 10%, or $11.4 million, as loan yields grew to 5.86% and cost of deposits expanded to 0.77%. The net interest margin declined only five basis points to 4.31%. • Well-controlled expenses with an adjusted efficiency ratio1 of 53.1%. • Maintained strong capital, with a tangible common equity to tangible asset ratio of 8.4%. If all HTM securities were adjusted to fair value, the tangible common equity to tangible asset ratio would be 7.8%. • Maintained lending discipline and ended the period with 82% loan to deposit ratio. • Asset quality remains strong with charge-offs, non- accruals, and criticized assets at historically low levels. • Increased liquidity position, representing 163% of uninsured and uncollateralized deposits. • Continued to execute on our strategic priorities, including closing on the acquisition of Professional Holding Corp. on January 31, 2023. The impact to the first quarter of 2023 on provision for loan losses was $26.6 million and on provision for unfunded commitments was $1.0 million. Full system conversion will be completed in June 2023. First Quarter 2023 Highlights 1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP. Comparisons are to fourth quarter of 2022 unless otherwise stated
5FIRST QUARTER 2023 EARNINGS PRESENTATION Continued Growth in Net Interest Income ($ in th ou sa nd s) $76,639 $81,764 $88,399 $119,858 $131,351 3.25% 3.38% 3.67% 4.36% 4.31% 3.10% 3.26% 3.58% 4.01% 3.78% Net Interest Income Net Interest Margin NIM, excluding accretion on acquired loans 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 • Net interest income1 totaled $131.4 million, an increase of $11.5 million, or 10%, from the prior quarter. • Net interest margin contracted five basis points to 4.31% and, excluding the effect of accretion on acquired loans, net interest margin contracted to 3.78%. The decline in the net interest margin from prior quarter was driven by the continued effect of an inverted yield curve, and additional excess liquidity added to the balance sheet late in the quarter. • Securities yields expanded eight basis points to 2.85%, reflecting the increasing rate environment. • Loan yields expanded 57 basis points to 5.86%, benefiting from $485.2 million in loan originations at higher rates during the first quarter of 2023. • Cost of deposits at 77 basis points. 1Calculated on a fully taxable equivalent basis using amortized cost.
6FIRST QUARTER 2023 EARNINGS PRESENTATION $15,825 $17,633 $20,221 $2,801 $3,996 $4,242 $4,128 $4,650 $4,694 $2,659 $2,886 $3,063$1,686 $426 $426$3,217 $3,344 $4,779$1,334 $1,526 $1,916 BOLI Other Income Insurance Agency Income Mortgage Banking Wealth Management Interchange Income Service Charges 1Q'22 4Q'22 1Q'23 $15,373 $17,651 $22,445 $2,801 $3,996 $4,242 $4,128 $4,650 $4,694 $2,659 $2,886 $3,063$1,686 $426 $426$2,765 $3,362 $7,003 $1,334 $1,526 $1,916 BOLI Other Income Insurance Agency Income Mortgage Banking Wealth Management Interchange Income Service Charges 1Q'22 4Q'22 1Q'23 Adjusted Noninterest Income1 ($ in thousands) 2 3 Noninterest Income ($ in thousands) 1 Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP. 2 Other Income includes income and gains on SBIC investments, SBA gains, marine finance fees, and other fees related to customer activity as well as $2.1 million BOLI benefits on death in 1Q’23, and securities losses of $452 thousand in 1Q’22, gains of $18 thousand in 4Q'22 and gains of $107 thousand in 1Q'23. 3 Other Income on an adjusted basis includes income and gains on SBIC investments, SBA gains, marine finance fees, and other fees related to customer activity. Noninterest Income Noninterest income increased $4.8 million from the prior quarter to $22.4 million, and adjusted noninterest income1 increased $2.6 million to $20.2 million. Changes on an adjusted basis include: • Service charges on deposits increased $0.2 million compared to the prior quarter and increased $1.4 million compared to the prior year quarter, reflecting the benefit of an expanded deposit base including from acquisitions. • The wealth management division continues to demonstrate success in building relationships, and during the first quarter of 2023, income increased $0.2 million, or 6%, compared to the prior quarter and $0.4 million, or 15%, compared to the prior year quarter. The group added another $123 million in assets under management in the first quarter of 2023, bringing overall total assets under management to $1.5 billion, up 24% from the prior year. • Insurance agency income increased $0.3 million, or 37% compared to the prior quarter. The Company acquired a commercial insurance agency during the fourth quarter in conjunction with the acquisition of Drummond Bank, adding another source of noninterest income. • Other income increased $1.4 million compared to the prior quarter, including an increase of $0.4 million in SBIC income and an increase of $0.3 million in loan swap related income. $1,101 $805 $805 $1,101
7FIRST QUARTER 2023 EARNINGS PRESENTATION $1,025 $1,158 $1,161 $1,239 $1,228 $1,162 $1,228 $1,387 $1,518 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 Assets Under Management ($ in millions) 20% CAGR A Continued Focus on Building Wealth Management Assets under management totaled $1.5 billion at March 31, 2023, increasing 24% from March 31, 2022. This is a result of the wealth management team’s continuing success at winning business with commercial relationships and high net worth families across the footprint. Wealth management income was $3.1 million in the first quarter of 2023, compared to $2.9 million in the prior quarter, and $2.7 million in the prior year quarter. In the past two years, assets under management have increased at a compound annual growth rate (“CAGR”) of 20%.
8FIRST QUARTER 2023 EARNINGS PRESENTATION $50,705 $70,431 $81,925 $30,671 $44,760 $51,094 $5,524 $7,336 $8,002 $142 $1,239 $6,070 $8,213 $9,001 $1,899 $2,683 $2,687 $5,610 $6,550 $8,459 Other Expense Legal & Professional Occupancy & Telephone FDIC Assessment Provision for Unfunded Commitments Data Processing Cost Salaries & Benefits 1Q'22 4Q'22 1Q'23 $58,917 $91,510 $107,475 $33,720 $50,705 $56,178$1,446 $4,763 $6,727 $6,156 $9,918 $14,553 $142 $1,239 $6,145 $8,586 $10,286 $4,789 $9,174 $7,479 $5,730 $7,475 $9,570 Other Expense Legal & Professional Occupancy & Telephone FDIC Assessment Provision for Unfunded Commitments Data Processing Cost Amortization of Intangibles Salaries & Benefits 1Q'22 4Q'22 1Q'23 Adjusted Noninterest Expense1 ($ in thousands) 2 2 Noninterest Expense ($ in thousands) Noninterest expense increased $16.0 million on a GAAP basis and increased $11.5 million on an adjusted basis. Changes quarter-over-quarter on an adjusted basis, which exclude transaction-specific costs, include: • Salaries and benefits increased $6.3 million to $51.1 million in the first quarter of 2023. The increase is primarily the result of the increase in costs associated with adding new locations, bankers, and operational staff with the acquisition of Professional Bank. • Outsourced data processing costs increased $0.7 million and occupancy and telephone costs increased $0.8 million in the first quarter of 2023, with higher transaction volume and the growth in customers resulting from the Professional Bank acquisition, as well as the full effect of the acquisitions of Apollo Bank and Drummond Bank from prior quarter. • The first quarter of 2023 included a $1.2 million provision for credit losses on unfunded commitments, $1.0 million of which resulted from the acquisition of Professional. • Other expenses increased by $1.9 million, including a $0.6 million increase in foreclosed property expense due to a gain in the prior quarter. FDIC assessment expense increased $0.6 million during the quarter. 1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP. 2Other Expense includes marketing expenses, foreclosed property expense and net loss/(gain) on sale and other expenses associated with ongoing business operations. Noninterest Expense $1,443 $889 $789 $789 $889 $1,443
9FIRST QUARTER 2023 EARNINGS PRESENTATION Efficiency Ratio Trend - Continued Focus on Disciplined Expense Control Pa lm B ea ch C om m un ity a nd N or th S ta r Ba nk A cq ui si tio n 60% 50% 62% 48% 53% 55% 60% 54% 62% 56% 57% 63% 65% 1Q '20 2Q '20 3Q '20 4Q '20 1Q '21 2Q '21 3Q '21 4Q '21 1Q '22 2Q '22 3Q '22 4Q '22 1Q '23 54% 50% 55% 49% 52% 53% 51% 53% 55% 53% 53% 52% 53% 1Q '20 2Q '20 3Q '20 4Q '20 1Q '21 2Q '21 3Q '21 4Q '21 1Q '22 2Q '22 3Q '22 4Q '22 1Q '23 GAAP - Efficiency Adjusted - Efficiency1 • The efficiency ratio was 65.4% for the first quarter of 2023 compared to 63.4% in the prior quarter and 62.3% in the first quarter of 2022. • The adjusted efficiency ratio1 was 53.1% for the first quarter of 2023 compared to 51.5% in the prior quarter and 54.9% in the first quarter of 2022. 1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP. First Bank of the Palm Beaches Freedom Bank Legacy Bank of Florida Sabal Palm Bank and Florida Business Bank Drummond Bank and Apollo Bank Professional Bank
10FIRST QUARTER 2023 EARNINGS PRESENTATION $6,451 $6,542 $6,691 $8,145 $10,134 $1,976 4.30% 4.29% 4.45% 5.29% 5.86% 4.06% 4.13% 4.31% 4.80% 5.17% Yield Excluding Accretion on Acquired Loans Reported Yield Professional Bank Total Loans 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 Total Loans End-of-Period ($ in millions) Disciplined Approach to Lending in a Strong Florida Economy Loans outstanding, excluding acquisitions, increased $13 million, or 0.6% annualized. Total loan originations were $485 million, including $322 million in commercial originations. Originations slowed from the prior quarter due to the impact of higher rates on loan demand and a more selective approach on new credit facilities given a cautious economic outlook. Loan yields increased 57 basis points, the result of the addition of Professional Bank and higher add- on rates.
11FIRST QUARTER 2023 EARNINGS PRESENTATION Commercial Real Estate - Owner Occupied $1,652,491 16% Construction and Land Development $757,835 7% Consumer $301,740 3% Commercial & Financial $1,650,485 16% Commercial Real Estate - Non-Owner Occupied $3,412,051 34% Residential Real Estate $2,354,394 23% At March 31, 2023 ($ in thousands) Seacoast's Lending Strategy Sustains a Diverse Loan Portfolio The Company remains focused and committed to its strict credit underwriting standards. Construction and land development and commercial real estate loans, as defined in regulatory guidance, represent 44% and 236%, respectively, of total consolidated risk based capital. Seacoast’s average loan size is $289 thousand and the average commercial loan size is $717 thousand. 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 are broadly distributed. Construction & Land Development and CRE Loans to Total Risk Based Capital 273% 236% 65% 44% CRE Construction & Land Development Peers SBCF Peer Source: 4Q’22 S&P Capital Paycheck Protection Program $5,399 <1%
12FIRST QUARTER 2023 EARNINGS PRESENTATION At March 31, 2023 Loan Portfolio Mix CRE-Retail, 9.92% CRE-Office, 6.10% CRE-Multifamily 5+, 4.69% CRE-Hotel/Motel, 4.02% CRE-Industrial/Warehouse, 3.54% CRE-Other, 5.39% OOCRE-Office, 4.83% OOCRE-Other, 11.47% Construction & Land Development, 7.48% Commercial & Financial, 16.29% Residential, 23.23% Consumer, 2.98% PPP, 0.05% Segment Balance ($ in thousands) % of Balance Non-Owner Occupied CRE Retail $ 1,005,724 9.92 % Office 618,377 6.10 Multifamily 5+ 475,261 4.69 Hotel/Motel 407,388 4.02 Industrial/Warehouse 358,620 3.54 Other 546,681 5.39 Total Non-Owner Occupied CRE $ 3,412,051 33.66 % OOCRE-Office 489,797 4.83 OOCRE-Other 1,162,694 11.47 Construction & Land Development 757,835 7.48 Commercial & Financial 1,650,485 16.29 Residential 2,354,394 23.23 Consumer 301,740 2.98 PPP 5,399 0.05 Total Loans $ 10,134,395 100.00 % Non-owner occupied commercial real estate are properties where the source of repayment is from the sale or lease of the property, or the owner does not occupy the property Owner-occupied CRE is used by the owner, where the primary source of repayment is the cash flow from business operations housed within the property.
13FIRST QUARTER 2023 EARNINGS PRESENTATION Non-owner Occupied Commercial Real Estate in Florida’s Strongest Markets Non-owner Occupied Commercial Real Estate by MSA Balance ($ in thousands) Balance % of Total Loans Miami / Dade County $ 793,660 7.83 % Orlando-Kissimmee, FL MSA 462,385 4.56 West Palm Beach / Palm Beach County 373,826 3.69 Ft. Lauderdale / Broward County 365,410 3.61 Tampa-St. Petersburg-Clearwater, FL 202,301 2.00 FL NONMETROPOLITAN AREA 161,293 1.59 Sarasota-Bradenton-Venice, FL MSA 148,254 1.46 Port St. Lucie, FL MSA 95,363 0.94 Palm Bay-Melbourne-Titusville, FL MSA 94,963 0.94 Jacksonville, FL MSA 94,727 0.93 Deltona-Daytona Beach-Ormond Beach, FL MSA 93,541 0.92 All Other FL 296,814 2.93 Outside FL 229,514 2.26 15% of total loans in vibrant, South Florida tri- county area. Between 2010 and 2020, Florida’s population grew 14.6%, twice the rate of overall U.S. population growth. Florida has been the top state for net in-migration for the past five years. The Florida office CRE market remains healthy with strong population in-migration continuing to support positive net absorption of 0.7% on average over the past year compared to just 1.7% of new inventory added or under construction. Compared to national average, Florida office has better absorption, 24% lower vacancy, and about half the volume of new supply coming to market. Sources: U.S. Census data, JLL
14FIRST QUARTER 2023 EARNINGS PRESENTATION Non-owner Occupied Commercial Real Estate CRE Non-Owner Occupied ($ in ‘000s) Balance Balance % of Total Loans Average Loan Size 30+ Days Past- Accruing Non Accrual Weighted LTV Retail $ 1,005,724 9.92 % $ 1,919 $ 924 $ — 52 % Office 618,377 6.10 1,649 — — 55 Multifamily 5+ 475,261 4.69 1,081 — 14,600 59 Hotel/Motel 407,388 4.02 3,574 — 1,012 55 Industrial/Warehouse 358,620 3.54 1,668 421 28 54 Other 546,681 5.39 1,144 47 7,768 53 Total $ 3,412,051 33.66 % $ 1,547 $ 1,392 $ 23,408 54 % Retail Segment: Targets grocery or credit tenant anchored shopping plazas, single credit tenant retail buildings, smaller outparcels and other retail units. • 9.92% of total loans. • 52% weighted average loan-to-value, low leverage. • $1.9 million average loan size. • 12 loans over $10 million. Office Segment: Targets low to mid-rise suburban offices, broadly diversified across many professional services. • 6.10% of total loans. • 55% weighted average loan-to-value, low leverage. • $1.6 million average loan size. • 9 loans over $10 million.
15FIRST QUARTER 2023 EARNINGS PRESENTATION Allowance for Credit Losses and Purchase Discount ($ in thousands) Loans Outstanding Allowance for Credit Losses % of Category Purchase Discount % of Category Construction and Land Development $ 757,835 $ 6,540 0.86 % $ 13,018 1.72 % Owner Occupied Commercial Real Estate 1,652,491 6,292 0.38 31,266 1.89 Commercial Real Estate 3,412,051 53,575 1.57 98,064 2.87 Residential Real Estate 2,354,394 40,599 1.72 35,883 1.52 Commercial & Financial 1,650,485 31,593 1.91 32,600 1.98 Consumer 301,740 17,041 5.65 5,144 1.70 Total Excluding PPP $ 10,128,996 $ 155,640 1.54 % $ 215,975 2.13 % Paycheck Protection Program $ 5,399 $ — — % $ — — % Total $ 10,134,395 $ 155,640 1.54 % $ 215,975 2.13 % The total allowance for credit losses of $155.6 million as of March 31, 2023, represents management’s estimate of lifetime expected credit losses. Combined with the $216.0 million remaining unrecognized discount on acquired loans, a total of $371.6 million, or 3.67%, of total loans is available to cover potential losses. As acquired loans are repaid, the unrecognized discount is earned as an adjustment to yield over the life of the loans. Additionally, a reserve for potential credit losses on lending-related commitments of $4.7 million is reflected within Other Liabilities.
16FIRST QUARTER 2023 EARNINGS PRESENTATION Net Charge-Offs (Recoveries) $8,139 $7,591 $3,027 $841 $3,1880.16% 0.13% 0.05% 0.01% 0.14% NCO NCO/Average Loans 2019 2020 2021 2022 1Q'23 (% annualized) ($ in thousands) Nonperforming Loans and Classified Assets $26,955 $36,110 $30,598 $28,843 $50,787 0.52% 0.63% 0.52% 0.35% 0.50% 0.95% 1.30% 1.25% 0.89% 1.03% NPL NPL/Total Loans Classified Assets/Total Assets 2019 2020 2021 2022 1Q'23 $89,838 $90,769 $95,329 $113,895 $155,640 1.39% 1.39% 1.42% 1.40% 1.54% ACL ACL/Total Loans 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 Allowance for Credit Losses Continued Strong Asset Quality Trends Credit metrics remain strong, with charge-offs, nonperforming and classified assets at historically low levels. Net charge-offs for the four most recent quarters averaged 0.05%. The increase in the allowance for credit losses to total loans reflects primarily the addition of the Professional Bank portfolio in the first quarter of 2023.
17FIRST QUARTER 2023 EARNINGS PRESENTATION Investment Securities Performance and Composition Unrealized Loss in Securities as of March 31, 2023 (in thousands) Amortized Cost Fair Value Net Unrealized Gain /(Loss) Δ from 4Q’22 Available for Sale Government backed $ 43,448 $ 43,384 $ (64) $ 102 Agency mortgage backed 1,657,149 1,454,488 (202,661) 19,883 Private label MBS and CMOs 175,629 163,374 (12,255) 506 CLO 312,086 305,477 (6,609) 3,642 Municipal 22,016 20,671 (1,345) 264 Other debt securities 28,799 28,573 (226) 4 Total Available for Sale $ 2,239,127 $ 2,015,967 $ (223,160) $ 24,401 Held to Maturity Agency mortgage backed $ 737,911 $ 618,776 $ (119,135) $ 10,532 Total Held to Maturity $ 737,911 $ 618,776 $ (119,135) $ 10,532 Total Securities $ 2,977,038 $ 2,634,743 $ (342,295) $ 34,933 ($ in m ill io ns ) $747 $795 $775 $747 $738 $1,707 $1,801 $1,861 $1,872 $2,016 1.68% 1.98% 2.36% 2.77% 2.85% HTM Securities AFS Securities Yield 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 • Portfolio yield increased eight basis points to 2.85% from 2.77% in the prior quarter. • AFS securities ended the quarter with a net unrealized loss of $223.2 million compared to a net unrealized loss of $247.6 million at December 31, 2022. • HTM securities ended the quarter with a net unrealized loss of $119.1 million compared to a net unrealized loss of $129.7 million at December 31, 2022. • High quality portfolio consisting of 80% agency backed, with the remainder comprised primarily of highly-rated investment grade bonds. CLO portfolio is 61% AAA and 39% AA. • AFS portfolio duration of 3.84, total portfolio duration of 4.42.
18FIRST QUARTER 2023 EARNINGS PRESENTATION Deposits End-of-Period ($ in millions) $9,244 $9,189 $8,765 $9,982 $12,310 $2,033 0.50% 1.75% 3.25% 4.50% 5.00% 0.06% 0.06% 0.09% 0.21% 0.77% Total Deposits Professional Bank Fed Funds Cost of Deposits 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 Growing Deposit Franchise Supported by Attractive Markets Continued focus on organic growth and relationship-based funding, in combination with our innovative analytics platform, supports a well-diversified, low-cost deposit portfolio. Transaction accounts represent 59% of overall deposit funding. Cost of deposits increased 56 basis points to 77 basis points. Average deposits per banking center were $148 million compared to $128 million in the prior quarter. Net organic customer growth in March was the highest level since 2020.
19FIRST QUARTER 2023 EARNINGS PRESENTATION Deposits End-of-Period ($ in millions) $9,244 $9,189 $8,765 $9,982 $12,310 Transaction Accounts Savings Money Market Time Deposits 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 Granular, Diverse and Relationship Focused Deposit Base Noninterest demand deposits represent 37% of overall deposits. The Company benefits from a granular deposit franchise, with the top ten depositors representing less than 5% of total deposits. Consumer deposits represent 40% of total deposits, with an average balance per account of $22 thousand. Business deposits represent 60% of total deposits, with an average balance per account of $101 thousand. The average tenure for a Seacoast customer is 9.8 years. During the first quarter of 2023, approximately $100 million migrated from deposits to customer sweep accounts. 62% 10% 22% 6% 64% 10% 21% 5% 65% 11% 19% 5% 64% 11% 20% 5% 10% 23% 8% 59%
20FIRST QUARTER 2023 EARNINGS PRESENTATION Deposits End-of-Period ($ in millions) $9,982 $10,047 $10,018 $9,902 $9,865 $11,872 $11,968 $11,842 $11,907 $12,193 $12,212 $12,056 $12,182 $12,310 Noninterest Demand Interest-Bearing Demand Money Market Savings Time Deposits Dec 31 Jan 6 Jan 13 Jan 20 Jan 27 Feb 3 Feb 10 Feb 17 Feb 24 Mar 3 Mar 10 Mar 17 Mar 24 Mar 31 Stable Core Deposit Base Transaction accounts represent 59% of total deposits at March 31, 2023. Relationship-focused operating accounts have been built over Seacoast’s long history. These accounts are typically very stable, which can be seen by the continued steady balances throughout the first quarter. Professional Bank Acquisition Bank Failures
21FIRST QUARTER 2023 EARNINGS PRESENTATION Liquidity Sources vs Uninsured Deposits Cash and Borrowing Capacity vs. Uninsured Deposits ($ in millions) $6,356 $3,888 $791 $2,661 $431 $1,496 $300 $677 Borrowing Capacity + Cash Uninsured and Uncollateralized Deposits Total Cash & Borrowing Capacity = $6.4 Billion Uninsured and Uncollateralized Deposits = $3.9 Billion Uninsured and uncollateralized deposits represent 32% of total deposits. Total liquidity sources of $6.4 billion compared to uninsured and uncollateralized deposits of $3.9 billion, representing a 163% coverage ratio. Without using FHLB borrowing capacity, lines of credit, or liquidating unpledged securities, SBCF could fund the loss of all uninsured and uncollateralized deposits with cash and borrowing capacity at the Federal Reserve. Uninsured deposits represent 36% of overall deposit accounts. This includes public funds, which are protected from loss beyond FDIC insurance limits. Unpledged Securities Lines of Credit Discount Window Cash BTFP FHLB
22FIRST QUARTER 2023 EARNINGS PRESENTATION $17.12 $16.66 $15.98 $14.69 $14.25 $22.15 $21.65 $20.95 $22.45 $24.24 Tangible Book Value Per Share Book Value Per Share 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 9.9% 9.7% 9.8% 9.1% 8.4% 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 17.7% 17.7% 17.5% 15.8% 15.0% 16.8% 16.8% 16.5% 14.8% 13.8% Total Risk Based Capital Tier 1 Ratio 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 8.0% 13.0% 11.5% 10.4% 6.0% 10.0% 14.0% 12.5% 15.1% 10.3% GAAP - ROTCE Adjusted - ROTCE 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP. 2FDICIA defines well capitalized as 10.0% for total risk based capital and 8.0% for Tier 1 ratio at a total Bank level. Tangible Book Value and Book Value Per Share Tangible Common Equity / Tangible Assets Total Risk Based and Tier 1 CapitalReturn on Tangible Common Equity 1 10.0%2 8.0%2 Industry Leading Capital Position Supporting a Fortress Balance Sheet
Tracey L. Dexter Chief Financial Officer Tracey.Dexter@SeacoastBank.com (772) 403-0461 Michael Young Treasurer & Director of Investor Relations Michael.Young@SeacoastBank.com (772) 403-0451 INVESTOR RELATIONS NASDAQ: SBCF
24FIRST QUARTER 2023 EARNINGS PRESENTATION Appendix
25FIRST QUARTER 2023 EARNINGS PRESENTATION Quarterly Trend (Amounts in thousands) 1Q'23 4Q'22 3Q'22 2Q'22 1Q'22 Commercial pipeline at period end $ 297,380 $ 395,652 $ 530,430 $ 476,693 $ 619,547 Commercial loan originations 321,665 489,605 340,438 461,855 372,986 Residential pipeline-saleable at period end 6,614 4,207 6,563 14,700 25,745 Residential loans-sold 13,935 10,652 16,381 42,666 51,222 Residential pipeline-portfolio at period end 48,371 17,149 60,684 53,092 87,950 Residential loans-retained1 90,058 74,272 69,272 102,996 175,457 Consumer pipeline at period end 11,640 36,585 43,732 75,532 61,613 Consumer originations 59,538 74,634 128,601 126,479 79,010 Total Pipelines at Period End $ 364,005 $ 453,593 $ 641,409 $ 620,017 $ 794,855 Total Originations $ 485,196 $ 649,163 $ 554,692 $ 733,996 $ 678,675 1Includes purchases of $111.3 million in 1Q’22. Loan Production and Pipeline Trend
26FIRST QUARTER 2023 EARNINGS PRESENTATION Florida Population Trends Florida’s economic strength is evident. Individual and business migration has surged, and the economy has diversified across finance and technology. Florida’s population growth has roughly doubled the national average. That trend is projected to continue over the next 5 years. Between 2010 and 2020, Florida’s population grew at twice the rate of overall U.S. population growth 14.6% Florida was the top state for net in-migration for the fifth consecutive year #1 2023 2010-2023 2023 2023-2028 2023-2028 MSA Market Rank1 Number of Branches1 Deposits In Market ($000)1 Deposit Market Share (%)1 Percent of National Franchise (%)1 Total Population (Actual) Population Change (%) Projected Population Change (%) Median Household Income ($) Projected HH Income Change (%) Miami-Fort Lauderdale-Pompano Beach, FL 14 27 $ 5,117,025 1.45 % 38.07 % 6,162,977 10.75 % 1.95 % $ 66,672 10.76 % Port St. Lucie, FL 1 11 2,742,127 20.58 20.40 511,894 20.70 7.53 68,090 11.74 Orlando-Kissimmee-Sanford, FL 7 13 1,913,006 2.52 14.23 2,778,772 30.19 6.35 68,251 10.63 Tampa-St. Petersburg-Clearwater, FL 18 5 714,041 0.77 0.05 3,268,872 17.45 5.19 65,247 11.68 Gainesville, FL 4 8 575,416 8.40 0.04 348,186 14.13 4.87 53,785 13.52 Sources: S&P Capital IQ. 1FDIC data pro forma as of June 30, 2022.
27FIRST QUARTER 2023 EARNINGS PRESENTATION Fair Value of Assets and Liabilities Acquired (Preliminary) (In thousands) 1/31/2023 Assets: Cash and cash equivalents $ 141,680 Investment securities 167,059 Loans 1,991,713 Bank premises and equipment 2,478 Core deposit intangibles 48,885 Goodwill 248,091 BOLI 55,071 Other assets 74,232 Total Assets $ 2,729,209 Liabilities: Deposits $ 2,119,341 Subordinated Debt 21,141 Other Liabilities 167,680 Total Liabilities $ 2,308,162 Professional Holding Corp. Acquisition Total transaction value of $421 million: • $248 million in goodwill • $49 million in core deposit intangibles, amortizing over 6 years using sum-of-years’ digits method • Total loan portfolio discount of $134 million Operating results in 1Q’23 were impacted by the day 1 provision for credit losses on loans of $26.6 million, and on unfunded commitments of $1.0 million. Loans Acquired 1/31/2023 (In thousands) Book Balance Fair Value (Preliminary) Construction and land development $ 156,048 $ 151,012 Commercial real estate - owner-occupied 293,473 274,068 Commercial real estate - non owner-occupied 752,393 692,746 Residential real estate 509,305 483,611 Commercial and financial 392,396 356,172 Consumer 33,656 32,153 PPP Loans 1,951 1,951 Total Acquired Loans $ 2,139,222 $ 1,991,713
28FIRST QUARTER 2023 EARNINGS PRESENTATION This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). The financial highlights provide reconciliations between GAAP and adjusted financial measures including net income, noninterest income, noninterest expense, tax adjustments and other financial ratios. 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. Explanation of Certain Unaudited Non-GAAP Financial Measures
29FIRST QUARTER 2023 EARNINGS PRESENTATION Quarterly Trend (Amounts in thousands except per share data) 1Q'23 4Q'22 3Q'22 2Q'22 1Q'22 Net Income $ 11,827 $ 23,927 $ 29,237 $ 32,755 $ 20,588 Total noninterest income 22,445 17,651 16,103 16,964 15,373 Securities losses/(gains), net (107) (18) 362 300 452 BOLI benefits on death (included in other income) (2,117) — — — — Total Adjustments to Noninterest Income (2,224) (18) 362 300 452 Total Adjusted Noninterest Income 20,221 17,633 16,465 17,264 15,825 Total noninterest expense 107,475 91,510 61,359 56,148 58,917 Salaries and wages (4,240) (5,680) — (652) (2,953) Outsourced data processing costs (6,551) (2,582) — (420) (632) Legal and professional fees (4,789) (6,485) (1,791) (1,381) (2,883) Other categories (1,952) (1,393) (263) (586) (224) Total merger-related charges (17,532) (16,140) (2,054) (3,039) (6,692) Amortization of intangibles (6,727) (4,763) (1,446) (1,446) (1,446) Branch reductions and other expense initiatives (1,291) (176) (960) — (74) Total Adjustments to Noninterest Expense (25,550) (21,079) (4,460) (4,485) (8,212) Total Adjusted Noninterest Expense 81,925 70,431 56,899 51,663 50,705 Income Taxes 2,697 7,794 9,115 8,886 5,834 Tax effect of adjustments 5,912 5,062 1,222 1,213 2,196 Adjusted Income Taxes 8,609 12,856 10,337 10,099 8,030 Adjusted Net Income $ 29,241 $ 39,926 $ 32,837 $ 36,327 $ 27,056 Earnings per diluted share, as reported $ 0.15 $ 0.34 $ 0.47 $ 0.53 $ 0.33 Adjusted Earnings per Diluted Share 0.36 0.56 0.53 0.59 0.44 Average diluted shares outstanding 80,717 71,374 61,961 61,923 61,704 GAAP to Non-GAAP Reconciliation
30FIRST QUARTER 2023 EARNINGS PRESENTATION Quarterly Trend (Amounts in thousands except per share data) 1Q'23 4Q'22 3Q'22 2Q'22 1Q'22 Adjusted Noninterest Expense $ 81,925 $ 70,431 $ 56,899 $ 51,663 $ 50,705 Foreclosed property expense and net loss (gain) on sale (195) 411 (9) 968 164 Provision for unfunded commitments (1,239) — (1,015) — (142) Net Adjusted Noninterest Expense $ 80,491 $ 70,842 $ 55,875 $ 52,631 $ 50,727 Revenue $ 153,597 $ 137,360 $ 104,387 $ 98,611 $ 91,895 Total Adjustments to Revenue (2,224) (18) 362 300 452 Impact of FTE adjustment 199 149 115 117 117 Adjusted Revenue on a Fully Taxable Equivalent Basis $ 151,572 $ 137,491 $ 104,864 $ 99,028 $ 92,464 Adjusted Efficiency Ratio 53.10 % 51.52 % 53.28 % 53.15 % 54.86 % Net Interest Income $ 131,152 $ 119,709 $ 88,284 $ 81,647 $ 76,522 Impact of FTE adjustment 199 149 115 117 117 Net Interest Income including FTE adjustment $ 131,351 $ 119,858 $ 88,399 $ 81,764 $ 76,639 Total noninterest income 22,445 17,651 16,103 16,964 15,373 Total noninterest expense 107,475 91,510 61,359 56,148 58,917 Pre-Tax Pre-Provision Earnings $ 46,321 $ 45,999 $ 43,143 $ 42,580 $ 33,095 Total Adjustments to Noninterest Income (2,224) (18) 362 300 452 Total Adjustments to Noninterest Expense (26,984) (20,668) (5,484) (3,517) (8,190) Adjusted Pre-Tax Pre-Provision Earnings $ 71,081 $ 66,649 $ 48,989 $ 46,397 $ 41,737 Average Assets $ 13,947,976 $ 12,139,856 $ 10,585,338 $ 10,840,518 $ 10,628,516 Less average goodwill and intangible assets (750,694) (521,412) (305,935) (307,411) (304,321) Average Tangible Assets $ 13,197,282 $ 11,618,444 $ 10,279,403 $ 10,533,107 $ 10,324,195 GAAP to Non-GAAP Reconciliation
31FIRST QUARTER 2023 EARNINGS PRESENTATION Quarterly Trend (Amounts in thousands except per share data) 1Q'23 4Q'22 3Q'22 2Q'22 1Q'22 Return on Average Assets (ROA) 0.34 % 0.78 % 1.10 % 1.21 % 0.79 % Impact of removing average intangible assets and related amortization 0.18 0.16 0.07 0.08 0.06 Return on Average Tangible Assets (ROTA) 0.52 0.94 1.17 1.29 0.85 Impact of other adjustments for Adjusted Net Income 0.38 0.42 0.10 0.09 0.21 Adjusted Return on Average Tangible Assets 0.90 1.36 1.27 1.38 1.06 Pre-Tax Pre-Provision return on Average Tangible Assets 1.58 1.69 1.58 1.61 1.33 Impact of adjustments on Pre-Tax Pre-Provision earnings 0.60 0.59 0.31 0.16 0.31 Adjusted Pre-Tax Pre-Provision Return on Tangible Assets 2.18 2.28 1.89 1.77 1.64 Average Shareholders' Equity $ 1,897,045 $ 1,573,704 $ 1,349,475 $ 1,350,568 $ 1,400,535 Less average goodwill and intangible assets (750,694) (521,412) (305,935) (307,411) (304,321) Average Tangible Equity $ 1,146,351 $ 1,052,292 $ 1,043,540 $ 1,043,157 $ 1,096,214 Return on Average Shareholders' Equity 2.53 % 6.03 % 8.60 % 9.73 % 5.96 % Impact of removing average intangible assets and related amortization 3.43 4.33 2.93 3.28 2.06 Return on Average Tangible Common Equity (ROTCE) 5.96 10.36 11.53 13.01 8.02 Impact of other adjustments for Adjusted Net Income 4.38 4.69 0.95 0.96 1.99 Adjusted Return on Average Tangible Common Equity 10.34 15.05 12.48 13.97 10.01 Loan Interest Income1 $ 135,341 $ 105,437 $ 74,050 $ 69,388 $ 67,198 Accretion on acquired loans (15,942) (9,710) (2,242) (2,720) (3,717) Loan interest income excluding accretion on acquired loans $ 119,399 $ 95,727 $ 71,808 $ 66,668 $ 63,481 1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost. GAAP to Non-GAAP Reconciliation
32FIRST QUARTER 2023 EARNINGS PRESENTATION Quarterly Trend (Amounts in thousands except per share data) 1Q'23 4Q'22 3Q'22 2Q'22 1Q'22 Yield on Loans1 5.86 % 5.29 % 4.45 % 4.29 % 4.30 % Impact of accretion on acquired loans (0.69) (0.49) (0.14) (0.16) (0.24) Yield on loans excluding accretion on acquired loans 5.17 % 4.80 % 4.31 % 4.13 % 4.06 % Net Interest income1 $ 131,351 $ 119,858 $ 88,399 $ 81,764 $ 76,639 Accretion on acquired loans (15,942) (9,710) (2,242) (2,720) (3,717) Net interest income excluding accretion on acquired loans $ 115,409 $ 110,148 $ 86,157 $ 79,044 $ 72,922 Net Interest Margin1 4.31 % 4.36 % 3.67 % 3.38 % 3.25 % Impact of accretion on acquired loans (0.53) (0.35) (0.09) (0.12) (0.15) Net interest margin excluding accretion on acquired loans 3.78 % 4.01 % 3.58 % 3.26 % 3.10 % Security Interest Income1 $ 19,375 $ 18,694 $ 15,827 $ 12,562 $ 10,218 Tax equivalent adjustment on securities (26) (34) (35) (36) (37) Security interest income excluding tax equivalent adjustment $ 19,349 $ 18,660 $ 15,792 $ 12,526 $ 10,181 Loan Interest Income1 $ 135,341 $ 105,437 $ 74,050 $ 69,388 $ 67,198 Tax equivalent adjustment on loans (173) (115) (80) (81) (80) Loan interest income excluding tax equivalent adjustment $ 135,168 $ 105,322 $ 73,970 $ 69,307 $ 67,118 Net Interest Income1 $ 131,351 $ 119,858 $ 88,399 $ 81,764 $ 76,639 Tax equivalent adjustment on securities (26) (34) (35) (36) (37) Tax equivalent adjustment on loans (173) (115) (80) (81) (80) Net interest income excluding tax equivalent adjustment $ 131,152 $ 119,709 $ 88,284 $ 81,647 $ 76,522 1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost. GAAP to Non-GAAP Reconciliation