Seacoast Reports Fourth Quarter and Full Year 2021 Results

Rhea-AI Summary

Seacoast Banking Corporation of Florida reported a strong performance for Q4 and the full year 2021. Net income reached $36.3 million for Q4, representing a 58% increase from the prior quarter and a 24% year-over-year rise. The total net income for 2021 was $124.4 million, up 60% from 2020. Key metrics include a return on average tangible equity of 14.29% and a tangible common equity ratio of 11.09%. Following the acquisition of Sabal Palm Bancorp and Business Bank of Florida, growth initiatives continue, driven by enhanced digital experiences and a strong recruitment drive.

Positive

• Net income of $124.4 million for 2021, up 60% from 2020.
• Q4 net income increased to $36.3 million, a 58% rise from the previous quarter.
• Return on average tangible equity improved to 14.29% from the prior quarter.
• Loan pipelines grew by 60% year-over-year, showing strong future lending potential.
• Completed acquisitions that enhance market presence in Florida.

Negative

• Net interest margin declined to 3.16% from 3.22% in the previous quarter, reflecting lower yields.
• Total deposits decreased by $266.6 million or 3% quarter-over-quarter.

Full Year Net Income of $124.4 Million, Increasing 60% Year-over-Year

Strong Growth in Loan Outstandings and Record Loan Pipelines Highlight Q4 Results

STUART, Fla., Jan. 27, 2022 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the fourth quarter of 2021 of $36.3 million, or $0.62 per diluted share. Fourth quarter 2021 results represent an increase of 58% compared to the third quarter of 2021, and an increase of 24% compared to the fourth quarter of 2020. For the full year 2021, net income was $124.4 million, or $2.18 per diluted share, an increase of 60% compared to the full year 2020. Adjusted net income¹ for the fourth quarter of 2021 was $36.9 million, or $0.62 per diluted share. Fourth quarter 2021 adjusted results represent an increase of 26% compared to the third quarter of 2021, and an increase of 20% compared to the fourth quarter of 2020. Adjusted net income¹ for the full year 2021 was $135.0 million, or $2.36 per diluted share, an increase of 52% compared to the full year 2020. At December 31, 2021, the ratio of tangible common equity to tangible assets was 11.09%, tangible book value per share was $17.84 and the Tier 1 capital ratio was 17.4%.

For the fourth quarter of 2021, return on average tangible assets was 1.51%, return on average tangible shareholders' equity was 14.29%, and the efficiency ratio was 53.70%, compared to 1.00%, 9.56%, and 59.55%, respectively, in the prior quarter, and 1.49%, 13.87%, and 48.23%, respectively, in the prior year quarter. For the full year 2021, return on average tangible assets was 1.41%, return on average tangible shareholders’ equity was 13.27%, and the efficiency ratio was 55.39%, compared to 1.08%, 10.10%, and 54.84%, respectively for the full year 2020. Adjusted return on average tangible assets¹ in the fourth quarter of 2021 was 1.49%, adjusted return on average tangible shareholders' equity¹ was 14.11%, and the adjusted efficiency ratio¹ was 53.43%, compared to 1.23%, 11.72%, and 51.50%, respectively, in the prior quarter, and 1.50%, 14.00%, and 48.75%, respectively, in the prior year quarter. Adjusted return on average tangible assets¹ for the full year 2021 was 1.48%, adjusted return on average tangible shareholders' equity¹ was 13.97%, and the adjusted efficiency ratio¹ was 52.59%, compared to 1.17%, 10.93%, and 51.63% for the full year 2020.

Charles M. Shaffer, Seacoast's President and CEO, said, "The Seacoast team delivered another outstanding quarter, generating $42.3 million in pre-tax pre-provision earnings and producing 8% annualized loan growth for the quarter. I am particularly proud of our team's continued execution of our strategic priorities, including an ongoing focus on improving our customers' digital experiences and positioning Seacoast as the leading commercial bank in Florida."

Shaffer added, "During the quarter, we continued to recruit both individual bankers and teams from upstream organizations challenged with integrating larger mergers. This high-quality talent is beginning to contribute materially to our pipelines, and we are excited to welcome these bankers to the Seacoast franchise."

Shaffer concluded, "It is an exciting period at Seacoast. Florida's inbound population growth remains strong, and our local economies are continuing to expand at a significant pace. The recruiting pipeline has never been stronger, and in the first quarter, we will introduce our clients to a much improved digital experience. When you put all of this together, in combination with our fortress balance sheet and ample liquidity, it provides confidence that the coming year is primed for disciplined growth."

2022 Acquisitions of Sabal Palm Bancorp, Inc. and Business Bank of Florida Corp.

On January 3, 2022, the Company completed the acquisitions of Sabal Palm Bancorp, Inc, and Business Bank of Florida Corp., providing an entry into the desirable Sarasota market and deepening the Company’s presence in Brevard County, Florida.

Financial Results

Income Statement

• Net income was $36.3 million, or $0.62 per diluted share for the fourth quarter of 2021 compared to $22.9 million, or $0.40, for the prior quarter, and $29.3 million, or $0.53, for the prior year quarter. For the year ended December 31, 2021, net income was $124.4 million, or $2.18 per diluted share, compared to $77.8 million, or $1.44, for the year ended December 31, 2020. Adjusted net income¹ for the fourth quarter of 2021 was $36.9 million, or $0.62 per diluted share, compared to $29.4 million, or $0.51, for the prior quarter, and $30.7 million, or $0.55, for the prior year quarter. For the year ended December 31, 2021, adjusted net income¹ was $135.0 million, or $2.36 per diluted share, compared to $89.0 million, or $1.65, for the year ended December 31, 2020.
• Net revenues were $91.0 million in the fourth quarter of 2021, an increase of $0.6 million, or 1%, compared to the prior quarter, and an increase of $7.3 million, or 9%, compared to the prior year quarter. For the year ended December 31, 2021, net revenues were $346.8 million, an increase of $22.4 million, or 7%, compared to the year ended December 31, 2020. Adjusted revenues¹ were $90.6 million in the fourth quarter of 2021, an increase of $0.2 million compared to the prior quarter, and an increase of $6.9 million, or 8.2%, compared to the prior year quarter. For the year ended December 31, 2021, net revenues were $346.6 million, an increase of $23.5 million, or 7%, compared to the year ended December 31, 2020.
• Net interest income totaled $72.3 million in the fourth quarter of 2021, an increase of $1.0 million, or 1%, from the prior quarter, reflecting the benefit of strong organic loan growth, partially offset by lower recognition of fees from slower PPP loan forgiveness. For the year ended December 31, 2021, net interest income was $276.0 million, an increase of $13.3 million, or 5%, compared to the year ended December 31, 2020. As of December 31, 2021, remaining deferred fees on PPP loans total $2.4 million, which will be recognized over the loans' remaining contractual maturity or earlier, as loans are forgiven.
• Net interest margin declined to 3.16% in the fourth quarter of 2021 compared to 3.22% in the third quarter of 2021, driven by lower yields on securities and loans reflective of the rate environment, partially offset by lower levels of excess liquidity and lower cost of deposits. Excluding the effect of PPP and accretion on acquired loans, net interest margin increased two basis points, from 2.89% in the third quarter of 2021 to 2.91% in the fourth quarter of 2021. Securities yields declined two basis points to 1.57% with continued careful deployment of cash into securities purchases. Non-PPP loan yields declined 11 basis points to 4.18%, with a record $408.9 million in commercial loan originations during the fourth quarter of 2021. Offsetting and favorable was the decline in excess liquidity including a strategic decline in brokered deposits, and a further decline in the cost of deposits to only six basis points. The effect on net interest margin of accretion of purchase discounts on acquired loans was an increase of 15 basis points in each of the fourth and third quarters of 2021. The effect on net interest margin of interest and fees on PPP loans was an increase of 10 basis points in the fourth quarter of 2021 compared to an increase of eighteen basis points in the prior quarter.
• Noninterest income totaled $18.7 million in the fourth quarter of 2021, a decrease of $0.3 million, or 2%, compared to the prior quarter, and an increase of $3.8 million, or 25%, compared to the prior year quarter. For the year ended December 31, 2021, noninterest income was $70.7 million, an increase of $9.2 million, or 15%, compared to the year ended December 31, 2020. Results for the fourth quarter of 2021 included the following:
  
  
  • Interchange revenue was flat compared to the prior quarter at $4.1 million, reflecting strong transactional volume despite the impact of the COVID-19 Omicron variant on spending late in the quarter. Economic conditions in Florida remain strong, and indications of consumer confidence are high.
  • Wealth management income was $2.4 million in the fourth quarter, a decrease of $0.2 million compared to the prior quarter. Higher trust-related fees in the prior quarter drove the comparative decline. The wealth management team added $64 million in AUM during the fourth quarter, and $419 million for the full year 2021, ending the year with $1.2 billion in assets under management, a 42% increase compared to the prior year.
  • Mortgage banking fees were $2.0 million, compared to $2.5 million in the prior quarter, due to slowing refinance activity and continuing low housing inventory levels.
  • SBA gains were $0.2 million compared to $0.8 million in the prior quarter, on lower saleable production.
  • Other income increased by $1.1 million in the fourth quarter of 2021, including an increase of $0.7 million in gains from SBIC investments compared to the prior quarter. Amounts recognized on SBIC investments will vary amongst periods. In addition, the sale of a website domain name obtained in a prior bank acquisition resulted in a gain of $0.8 million, which has been removed from the presentation of adjusted net income.
  • The Company recognized $0.4 million in losses in the fourth quarter of 2021 on the sale of lower-yielding securities, which were removed from the presentation of adjusted net income.
• The provision for credit losses was a net benefit of $3.9 million in the fourth quarter of 2021, reflecting continued improvement in the economic outlook, compared to a provision of $5.1 million in the prior quarter. The prior quarter included an increase associated with onboarding the Legacy Bank of Florida acquisition.
• Noninterest expense was $50.3 million in the fourth quarter of 2021, a decrease of $5.0 million, or 9%, compared to the prior quarter, and an increase of $6.6 million, or 15%, compared to the prior year quarter. For the year ended December 31, 2021, noninterest expense was $197.4 million, an increase of $11.9 million, or 6%, compared to the year ended December 31, 2020. Changes from the third quarter of 2021 included the following:
  
  
  • Salaries and wages decreased $2.9 million to $25.0 million, with the prior quarter reflecting $2.6 million in merger-related expenses associated with the Legacy Bank of Florida acquisition.
  • Employee benefits increased by $0.6 million to $4.8 million, primarily the result of higher employee health insurance costs.
  • Outsourced data processing costs decreased by $0.4 million to $5.2 million, with increases in the prior quarter reflecting expenses related to the acquisition of Legacy Bank of Florida, offset by expenses incurred in the fourth quarter of 2021 preparing for the upgrade of the online and mobile banking platform in the first quarter of 2022.
  • Legal and professional fees decreased by $1.7 million to $2.5 million, with the prior quarter reflecting $1.5 million in merger-related expenses.
• Seacoast recorded $8.3 million of income tax expense in the fourth quarter of 2021, compared to $7.0 million in the prior quarter and $8.8 million in the fourth quarter of 2020. A temporary decline in the Florida corporate income tax rate to 3.535% retroactive to January 1, 2021, lowered tax expense by $0.7 million in the fourth quarter of 2021. The tax rate increased to 5.5% effective January 1, 2022, resulting in an additional tax benefit of $0.8 million recognized in the fourth quarter of 2021 upon the adjustment of the value of deferred tax assets affected by the change. Tax benefits related to stock-based compensation totaled $0.6 million in the fourth quarter of 2021, $0.3 million in the third quarter of 2021, and were nominal in the fourth quarter of 2020.
• The ratio of net adjusted noninterest expense¹ to average tangible assets was 1.96% in the fourth quarter of 2021, compared to 1.95% in the prior quarter and 2.00% in the fourth quarter of 2020.
• The efficiency ratio was 53.70% in the fourth quarter of 2021, compared to 59.55% in the prior quarter and 48.23% in the prior year quarter. The decrease from the prior quarter primarily reflects the impact of merger related expenses incurred in the prior quarter. The efficiency ratio was 55.39% for the full year 2021 compared to 54.84% for the full year 2020. The adjusted efficiency ratio¹ was 53.43% in the fourth quarter of 2021, compared to 51.50% in the prior quarter and 48.75% in the prior year quarter. The adjusted efficiency ratio¹ for the full year 2021 was 52.59% compared to 51.63% for the full year 2020.

Balance Sheet

• At December 31, 2021, the Company had total assets of $9.7 billion and total shareholders' equity of $1.3 billion. Book value per share increased to $22.40 on December 31, 2021 from $22.12 on September 30, 2021, and $20.46 on December 31, 2020. Tangible book value per share of $17.84 on December 31, 2021 increased 10% compared to December 31, 2020.
• Debt securities totaled $2.3 billion on December 31, 2021, an increase of $210.3 million, or 10%, compared to September 30, 2021. Purchases during the fourth quarter of 2021 totaled $431.1 million, consisting primarily of agency-issued collateralized mortgage obligations with an average yield of 1.48% and a duration of 3.2 years. The Company continues to take a prudent and disciplined approach to reinvesting liquidity.
• Loans totaled $5.9 billion on December 31, 2021, an increase of $19.1 million compared to September 30, 2021, inclusive of PPP loans, which declined $99.5 million during the quarter. When excluding the impact of PPP loans, loans outstanding increased $119 million, or 2% from the prior quarter.
• Loan originations were $599.9 million in the fourth quarter of 2021, compared to $744.0 million in the third quarter of 2021, a decrease of 19%. The decline in loan originations was the result of wholesale loans purchased in the prior quarter. Loan originations for the full year 2021 were $2.5 billion, an increase of 20% compared to the prior year.
  
  
  • Commercial originations were $408.9 million during the fourth quarter of 2021, compared to $331.6 million in the third quarter of 2021, and $277.4 million in the fourth quarter of 2020. The combination of economic expansion and our focus on building the leading commercial bank in Florida contributed to the increase in originations during the quarter.
  • Consumer originations in the fourth quarter of 2021 increased to $72.6 million from $66.4 million in the third quarter of 2021 and from $47.5 million in the fourth quarter of 2020. When comparing the fourth quarter of 2021 to the fourth quarter of 2020, consumer originations increased 53%.
  • Residential loans originated for sale in the secondary market totaled $69.2 million in the fourth quarter of 2021, compared to $95.1 million in the third quarter of 2021 and $161.6 million in the fourth quarter of 2020. Limited housing inventory and slowing refinance activity contributed to lower production.
  • Closed residential loans retained in the portfolio totaled $49.1 million in the fourth quarter of 2021, compared to $250.8 million in the third quarter of 2021, and $54.5 million in the fourth quarter of 2020. The third quarter of 2021 included $180.8 million in opportunistic purchases of high-quality wholesale residential home mortgage loans.
• Pipelines (loans in underwriting and approval or approved and not yet closed) totaled $483.3 million on December 31, 2021, an increase of 1% from September 30, 2021 and an increase of 60% from December 31, 2020.
  
  
  • Commercial pipelines were $397.8 million as of December 31, 2021, an increase of 8% from $368.9 million at September 30, 2021, and an increase of 139% from $166.7 million at December 31, 2020. We expect commercial production and pipelines to continue to grow as we expand into new markets and add well known commercial bankers across the state.
  • Consumer pipelines were $29.7 million as of December 31, 2021, compared to $31.0 million at September 30, 2021, and $18.2 million at December 31, 2020.
  • Residential saleable pipelines were $30.1 million as of December 31, 2021, compared to $42.8 million at September 30, 2021, and $92.0 million at December 31, 2020. Retained residential pipelines were $25.6 million as of December 31, 2021, compared to $35.4 million at September 30, 2021, and $25.1 million at December 31, 2020.
• Total deposits were $8.1 billion as of December 31, 2021, a decrease of $266.6 million, or 3%, compared to September 30, 2021, and an increase of $1.1 billion, or 16%, compared to December 31, 2020.
  
  
  • Total transaction account balances increased $34.1 million, or 1%, quarter-over-quarter, and at December 31, 2021 represent 62% of overall deposit funding.
  • Money market deposits decreased by $300 million to $1.7 billion, including a $189 million strategic decrease in brokered deposits. The majority of these brokered deposit balances returned to the balance sheet in January 2022.
  • The Company manages excess liquidity on the balance sheet through participation in programs with third-party deposit networks. Through these programs, the Company can offer its customers access to FDIC insurance on large balances with attractive terms, and the Company can retain or sell, on an overnight basis, the underlying deposits. At December 31, 2021, the Company had sold, on an overnight basis, $228 million in deposits compared to $233 million at September 30, 2021, and $113 million at December 31, 2020. These deposits are not included in the consolidated balance sheet.
  • The overall cost of deposits declined to six basis points in the fourth quarter of 2021 from seven basis points in the prior quarter.
  • As of December 31, 2021, deposits per banking center were $154 million, compared to $138 million on December 31, 2020. Two new branches were opened during the fourth quarter of 2021 in Broward County, one of the fastest growing markets in Florida.

Asset Quality

• Nonperforming loans decreased by $2.0 million to $30.6 million at December 31, 2021. Nonperforming loans to total loans outstanding were 0.52% at December 31, 2021, 0.55% at September 30, 2021, and 0.63% at December 31, 2020.
• Nonperforming assets to total assets were 0.46% at December 31, 2021, 0.47% at September 30, 2021, and 0.59% at December 31, 2020.
• The ratio of allowance for credit losses to total loans was 1.41% at December 31, 2021, 1.49% at September 30, 2021, and 1.62% at December 31, 2020. Excluding PPP loans, the ratio of allowance for credit losses to total loans at December 31, 2021 was 1.43%, compared to 1.54% at September 30, 2021 and 1.79% at December 31, 2020. The decline in coverage reflects continued improvement in the economic outlook and sustained strong portfolio performance.
• Net charge-offs were $0.6 million, or 0.04%, of average loans for the fourth quarter of 2021 compared to $1.4 million, or 0.10%, of average loans in the third quarter of 2021 and $3.1 million, or 0.21%, of average loans in the fourth quarter of 2020. Net charge-offs for the four most recent quarters averaged 0.06%.
• Portfolio diversification, in terms of asset mix, industry, and loan type, has been a critical element of the Company's lending strategy. Exposure across industries and collateral types is broadly distributed. Excluding PPP loans, Seacoast's average commercial loan size is $479 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 21% and 177% of total bank-level risk-based capital, respectively, compared to 21% and 175% respectively, in the third quarter of 2021. On a consolidated basis, construction and land development and commercial real estate loans represent 19% and 162%, respectively, of total consolidated risk-based capital.

Capital and Liquidity

• The tier 1 capital ratio was 17.4% at December 31, 2021, compared to 17.7% at September 30, 2021, and 17.4% at December 31, 2020. The total capital ratio was 18.2% and the tier 1 leverage ratio was 11.7% at December 31, 2021.
• Cash and cash equivalents at December 31, 2021 totaled $737.7 million, a decrease of $490.0 million, or 40%, from September 30, 2021, reflecting the impact of securities purchases and strategic liquidity management activities.
• Tangible common equity to tangible assets was 11.09% at December 31, 2021, compared to 10.62% at September 30, 2021, and 11.01% at December 31, 2020.
• At December 31, 2021, the Company had available unsecured lines of credit of $165.0 million and lines of credit under lendable collateral value of $1.6 billion. Additionally, $1.9 billion of debt securities and $614.2 million of residential and commercial real estate loans are available as collateral for potential borrowings.

FINANCIAL HIGHLIGHTS
(Amounts in thousands except per share data)	(Unaudited)
	Quarterly Trends
	4Q'21				3Q'21				2Q'21				1Q'21				4Q'20
Selected Balance Sheet Data:
Total Assets	$	9,681,433			$	9,893,498			$	9,316,833			$	8,811,820			$	8,342,392
Gross Loans		5,925,029				5,905,884				5,437,049				5,661,492				5,735,349
Total Deposits		8,067,589				8,334,172				7,836,436				7,385,749				6,932,561
Performance Measures:
Net Income	$	36,330			$	22,944			$	31,410			$	33,719			$	29,347
Net Interest Margin		3.16	%			3.22	%			3.23	%			3.51	%			3.59	%
Average Diluted Shares Outstanding		59,016				57,645				55,901				55,992				55,739
Diluted Earnings Per Share (EPS)	$	0.62			$	0.40			$	0.56			$	0.60			$	0.53
Return on (annualized):
Average Assets (ROA)		1.43	%			0.93	%			1.40	%			1.61	%			1.39	%
Average Tangible Assets (ROTA)2		1.51				1.00				1.48				1.70				1.49
Average Tangible Common Equity (ROTCE)2		14.29				9.56				13.88				15.62				13.87
Tangible Common Equity to Tangible Assets2		11.09				10.62				10.43				10.71				11.01
Tangible Book Value Per Share2	$	17.84			$	17.52			$	17.08			$	16.62			$	16.16
Efficiency Ratio		53.70	%			59.55	%			54.93	%			53.21	%			48.23	%
Adjusted Operating Measures1:
Adjusted Net Income	$	36,854			$	29,350			$	33,251			$	35,497			$	30,700
Adjusted Diluted EPS		0.62				0.51				0.59				0.63				0.55
Adjusted ROTA2		1.49	%			1.23	%			1.52	%			1.75	%			1.50	%
Adjusted ROTCE2		14.11				11.72				14.27				16.01				14.00
Adjusted Efficiency Ratio		53.43				51.50				53.49				51.99				48.75
Net Adjusted Noninterest Expense as a Percent of Average Tangible Assets2		1.96				1.95				1.98				2.16				2.00
Other Data:
Market capitalization3	$	2,070,465			$	1,972,784			$	1,893,141			$	2,003,866			$	1,626,913
Full-time equivalent employees		989				995				946				953				965
Number of ATMs		75				72				75				75				77
Full-service banking offices		54				52				48				48				51
Registered online users		136,401				133,977				129,568				126,352				123,615
Registered mobile devices		130,676				126,730				122,815				117,959				115,129
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.

Fourth Quarter and Full Year 2021 Strategic Highlights

Capitalizing on Seacoast’s Early Commitment to Digital Transformation

• Seacoast is utilizing best-in-class technology and our extensive digital competencies to support our growth initiatives. An upgraded online and mobile banking platform, launching in the first quarter of 2022, unifies the user experience with new functionality and features that are consistent across all devices. This new platform will also deliver a range of new digital products and services. Delivering an enhanced digital banking experience for both consumers and businesses complements our exceptional branch, ATM, and telephone banking services to deliver a very competitive value proposition.
• Routine transactions continue to migrate from the branch network to lower cost channels, including to digital offerings and to our recently upgraded ATM network. In the fourth quarter of 2021, 61% of all consumer deposit transactions were completed outside of the branch network, an increase of 10% compared to the same period in 2019.
• Technology continues to help our teams outperform and provide outstanding service to our customers. A significant investment in our digital commercial loan origination platform in 2021 has accelerated our speed to market, providing a quicker renewal process and a streamlined workflow for bankers and underwriters. Customers have also benefited from our automated PPP forgiveness solution integrated with our existing technology infrastructure.
  

Driving Sustainable Growth and Expanding our Footprint

• Our balanced growth strategy includes organic growth initiatives across the state, including recent entries into Northeast Florida and Naples/Ft. Myers with key additions to our commercial banking leadership and teams. In 2021, we added 20 experienced bankers in the state’s most dynamic and fastest growing markets. We expect to continue to invest in well known seasoned bankers in the coming year.
• Seacoast continues to evolve our branch footprint in order to redirect capacity into attractive growth markets. In alignment with this strategy, four banking center locations were consolidated in 2021, and two new branches opened.

Scaling and Evolving Our Culture

• In 2021, Seacoast customer satisfaction scores exceeded industry benchmarks, a reflection of best-in-class branch and call center customer service experiences. Seacoast index scores were 110% compared to the industry benchmark for branch customer service and 104% compared to the industry benchmark for call center support according to a leading data analytics and consumer intelligence company.
• In November, Seacoast Bank was named one of the Best Banks to Work For in 2021 by American Banker. This is the second consecutive year that Seacoast was selected for this award. In July, Seacoast Bank was named to the Orlando Business Journal’s 2021 Best Places to Work. These distinctions recognize an outstanding leadership team that continually puts its employees first and prioritizes a collaborative and inclusive workplace.
• Seacoast Bank was named among Forbes Magazine’s 2021 America’s Best-In-State Banks and Credit Unions. Seacoast has the distinction of being the only Florida-headquartered community bank to make the list. Forbes partnered with market research firm Statista to survey nearly 25,000 people in the U.S. about their banking relationships. Banks and credit unions were rated on overall recommendations and satisfaction, consumer trust, terms and conditions, branch services, digital services, and financial advice. Only 2.7% of all banks made the list.
  

OTHER INFORMATION

Conference Call Information
Seacoast will host a conference call on January 28, 2022 at 10:00 a.m. (Eastern Time) to discuss the fourth quarter and full year 2021 earnings results and business trends. Investors may call in (toll-free) by dialing (800) 774-6070 (passcode: 7241 761; host: Charles Shaffer). Charts will be used during the conference call and may be accessed at Seacoast's website at www.SeacoastBanking.com by selecting "Presentations" under the heading "News/Events." A replay of the call will be available for one month, beginning late afternoon on January 28, 2022, and can be accessed via a link at www.SeacoastBanking.com under the heading “Corporate Information,” using the passcode 50264428.

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

About Seacoast Banking Corporation of Florida (NASDAQ: SBCF)
Seacoast Banking Corporation of Florida (NASDAQ: SBCF) is one of the largest community banks headquartered in Florida with approximately $9.7 billion in assets and $8.1 billion in deposits as of December 31, 2021. Seacoast provides integrated financial services including commercial and consumer banking, wealth management, and mortgage services to customers at over 50 full-service branches across Florida, and through advanced mobile and online banking solutions. Seacoast National Bank is the wholly-owned subsidiary bank of Seacoast Banking Corporation of Florida. For more information about Seacoast, visit www.SeacoastBanking.com. 

Cautionary Notice Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning, and protections, of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, loan growth, cost savings, enhanced revenues, economic and seasonal conditions in our markets, and improvements to reported earnings that may be realized from cost controls, tax law changes, new initiatives and for integration of banks that we have acquired (including Florida Business Bank and Sabal Palm Bank) or expect 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, any of which may be impacted by the COVID-19 pandemic and any variants thereof and related effects on the U.S. economy. Actual results may differ from those set forth in the forward-looking statements.

Forward-looking statements include statements with respect to our 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 our control, and which may cause the actual results, performance or achievements of Seacoast to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. You should not expect us 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 our use of words such as "may", "will", "anticipate", "assume", "should", "support", "indicate", "would", "believe", "contemplate", "expect", "estimate", "continue", "further", "plan", "point to", "project", "could", "intend", "target" or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the effects of future economic and market conditions, including seasonality and the adverse impact of COVID-19 (economic and otherwise); governmental monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve, as well as legislative, tax and regulatory changes, including those that impact the money supply and inflation; changes in accounting policies, rules and practices, including the impact of the adoption of CECL; our participation in the Paycheck Protection Program ("PPP"); the risks of changes in interest rates on the level and composition of deposits, loan demand, liquidity and the values of loan collateral, securities, and interest sensitive assets and liabilities; interest rate risks, sensitivities and the shape of the yield curve; uncertainty related to the impact of LIBOR calculations on securities and loans; changes in borrower credit risks and payment behaviors; changing retail distribution strategies, customer preferences and behavior; changes in the availability and cost of credit and capital in the financial markets; changes in the prices, values and sales volumes of residential and commercial real estate; our ability to comply with any regulatory requirements; the effects of problems encountered by other financial institutions that adversely affect us or the banking industry; our concentration in commercial real estate loans; 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 our investments due to market volatility or counterparty payment risk; statutory and regulatory dividend restrictions; increases in regulatory capital requirements for banking organizations generally; the risks of mergers, acquisitions and divestitures, including our 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; our ability to identify and address increased cybersecurity risks; inability of our risk management framework to manage risks associated with our business; dependence on key suppliers or vendors to obtain equipment or services for our business on acceptable terms; reduction in or the termination of our ability to use the mobile-based platform that is critical to our business growth strategy; the effects of war or other conflicts, acts of terrorism, natural disasters, health emergencies, epidemics or pandemics, or other catastrophic events that may affect general economic conditions; unexpected outcomes of and the costs associated with, existing or new litigation involving us; our 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 our deferred tax assets could be reduced if estimates of future taxable income from our operations and tax planning strategies are less than currently estimated and sales of our capital stock could trigger a reduction in the amount of net operating loss carryforwards that we 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, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our 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; and the failure of assumptions underlying the establishment of reserves for possible loan losses.

Actual results and capital and other financial conditions may differ materially from those included in these statements due to a variety of factors. These factors include, among others described above, macroeconomic and other challenges and uncertainties related to the COVID-19 pandemic, such as the duration and severity of the impact on public health (including the potential negative impact of various state and local policies enacted as a result of the pandemic and the vaccines’ efficacy against the virus, including new variants),, the U.S. and global economies, financial markets and consumer and corporate customers and clients, including economic activity and employment, as well as the various actions taken in response by governments, central banks and others, including Seacoast, and the precautionary statements included in this release.

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 our annual report on Form 10-K for the year ended December 31, 2020 and quarterly report on Form 10-Q for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021 under "Special Cautionary Notice Regarding Forward-looking Statements" and "Risk Factors", and otherwise in our 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.

¹Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.

 

FINANCIAL HIGHLIGHTS								(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	Quarterly Trends																				Twelve Months Ended
(Amounts in thousands, except ratios and per share data)	4Q'21				3Q'21				2Q'21				1Q'21				4Q'20				4Q'21				4Q'20
Summary of Earnings
Net income	$	36,330			$	22,944			$	31,410			$	33,719			$	29,347			$	124,403			$	77,764
Adjusted net income1		36,854				29,350				33,251				35,497				30,700				134,952				88,950
Net interest income2		72,412				71,455				65,933				66,741				68,903				276,541				263,203
Net interest margin2,3		3.16	%			3.22	%			3.23	%			3.51	%			3.59	%			3.27	%			3.65	%
Performance Ratios
Return on average assets-GAAP basis3		1.43	%			0.93	%			1.40	%			1.61	%			1.39	%			1.33	%			0.99	%
Return on average tangible assets-GAAP basis3,4		1.51				1.00				1.48				1.70				1.49				1.41				1.08
Adjusted return on average tangible assets1,3,4		1.49				1.23				1.52				1.75				1.50				1.48				1.17
Net adjusted noninterest expense to average tangible assets1,3,4		1.96				1.95				1.98				2.16				2.00				2.01				2.19
Return on average shareholders' equity-GAAP basis3		11.06				7.29				10.76				12.03				10.51				10.24				7.44
Return on average tangible common equity-GAAP basis3,4		14.29				9.56				13.88				15.62				13.87				13.27				10.10
Adjusted return on average tangible common equity1,3,4		14.11				11.72				14.27				16.01				14.00				13.97				10.93
Efficiency ratio5		53.70				59.55				54.93				53.21				48.23				55.39				54.84
Adjusted efficiency ratio1		53.43				51.50				53.49				51.99				48.75				52.59				51.63
Noninterest income to total revenue (excluding securities gains/losses)		20.89				21.09				18.94				21.07				17.85				20.53				18.68
Tangible common equity to tangible assets4		11.09				10.62				10.43				10.71				11.01				11.09				11.01
Average loan-to-deposit ratio		70.29				69.97				74.13				81.39				84.48				73.61				88.20
End of period loan-to-deposit ratio		73.84				71.46				69.93				77.48				83.72				73.84				83.72
Per Share Data
Net income diluted-GAAP basis	$	0.62			$	0.40			$	0.56			$	0.60			$	0.53			$	2.18			$	1.44
Net income basic-GAAP basis		0.62				0.40				0.57				0.61				0.53				2.20				1.45
Adjusted earnings1		0.62				0.51				0.59				0.63				0.55				2.36				1.65
Book value per share common		22.40				22.12				21.33				20.89				20.46				22.40				20.46
Tangible book value per share		17.84				17.52				17.08				16.62				16.16				17.84				16.16
Cash dividends declared		0.13				0.13				0.13				—				—				0.39				—
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																				Twelve Months Ended
(Amounts in thousands, except per share data)	4Q'21				3Q'21				2Q'21				1Q'21				4Q'20				4Q'21				4Q'20
Interest on securities:
Taxable	$	8,574			$	7,775			$	6,559			$	6,298			$	6,477			$	29,206			$	29,718
Nontaxable		139				143				147				148				86				577				454
Fees on PPP loans		3,011				5,218				3,877				5,390				3,603				17,496				7,774
Interest on PPP loans		341				699				1,251				1,496				1,585				3,787				4,201
Interest and fees on loans - excluding PPP loans		61,049				58,507				55,220				55,412				60,407				230,188				242,391
Interest on federal funds sold and other investments		828				867				709				586				523				2,990				2,497
Total Interest Income		73,942				73,209				67,763				69,330				72,681				284,244				287,035
Interest on deposits		711				849				980				1,065				1,228				3,605				6,920
Interest on time certificates		494				583				524				1,187				2,104				2,788				13,365
Interest on borrowed money		448				453				457				468				558				1,826				4,007
Total Interest Expense		1,653				1,885				1,961				2,720				3,890				8,219				24,292
Net Interest Income		72,289				71,324				65,802				66,610				68,791				276,025				262,743
Provision for credit losses		(3,942	)			5,091				(4,855	)			(5,715	)			1,900				(9,421	)			38,179
Net Interest Income After Provision for Credit Losses		76,231				66,233				70,657				72,325				66,891				285,446				224,564
Noninterest income:
Service charges on deposit accounts		2,606				2,495				2,338				2,338				2,423				9,777				9,429
Interchange income		4,135				4,131				4,145				3,820				3,596				16,231				13,711
Wealth management income		2,356				2,562				2,387				2,323				1,949				9,628				7,507
Mortgage banking fees		2,030				2,550				2,977				4,225				3,646				11,782				14,696
Marine finance fees		147				152				177				189				145				665				690
SBA gains		200				812				232				287				113				1,531				685
BOLI income		1,295				1,128				872				859				889				4,154				3,561
Other		6,316				5,228				2,249				3,744				2,187				17,537				10,056
		19,085				19,058				15,377				17,785				14,948				71,305				60,335
Securities (losses) gains, net		(379	)			(30	)			(55	)			(114	)			(18	)			(578	)			1,235
Total Noninterest Income		18,706				19,028				15,322				17,671				14,930				70,727				61,570
Noninterest expenses:
Salaries and wages		25,005				27,919				22,966				21,393				21,490				97,283				88,539
Employee benefits		4,763				4,177				3,953				4,980				3,915				17,873				15,544
Outsourced data processing costs		5,165				5,610				4,676				4,468				4,233				19,919				19,053
Telephone / data lines		790				810				838				785				774				3,223				2,984
Occupancy		3,500				3,541				3,310				3,789				3,554				14,140				14,150
Furniture and equipment		1,403				1,567				1,166				1,254				1,317				5,390				5,874
Marketing		1,060				1,353				1,002				1,168				1,045				4,583				4,833
Legal and professional fees		2,461				4,151				2,182				2,582				509				11,376				9,167
FDIC assessments		713				651				515				526				528				2,405				1,268
Amortization of intangibles		1,304				1,306				1,212				1,211				1,421				5,033				5,857
Foreclosed property expense and net (gain) loss on sale		(175	)			66				(90	)			(65	)			1,821				(264	)			2,263
Provision for credit losses on unfunded commitments		—				133				—				—				(795	)			133				185
Other		4,274				3,984				4,054				4,029				3,869				16,341				15,835
Total Noninterest Expense		50,263				55,268				45,784				46,120				43,681				197,435				185,552
Income Before Income Taxes		44,674				29,993				40,195				43,876				38,140				158,738				100,582
Income taxes		8,344				7,049				8,785				10,157				8,793				34,335				22,818
Net Income	$	36,330			$	22,944			$	31,410			$	33,719			$	29,347			$	124,403			$	77,764
Per share of common stock:
Net income diluted	$	0.62			$	0.40			$	0.56			$	0.60			$	0.53			$	2.18			$	1.44
Net income basic		0.62				0.40				0.57				0.61				0.53				2.20				1.45
Cash dividends declared		0.13				0.13				0.13				—				—				0.39				—
Average diluted shares outstanding		59,016				57,645				55,901				55,992				55,739				57,088				53,930
Average basic shares outstanding		58,462				57,148				55,421				55,271				55,219				56,586				53,502

CONDENSED CONSOLIDATED BALANCE SHEETS										(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
		December 31,				September 30,				June 30,				March 31,				December 31,
(Amounts in thousands)			2021				2021				2021				2021				2020
Assets
Cash and due from banks		$	238,750			$	199,460			$	97,468			$	89,123			$	86,630
Interest bearing deposits with other banks			498,979				1,028,235				1,351,377				890,202				317,458
Total Cash and Cash Equivalents			737,729				1,227,695				1,448,845				979,325				404,088
Time deposits with other banks			—				750				750				750				750
Debt Securities:
Available for sale (at fair value)			1,644,319				1,546,155				1,322,776				1,051,396				1,398,157
Held to maturity (at amortized cost)			638,640				526,502				493,467				512,307				184,484
Total Debt Securities			2,282,959				2,072,657				1,816,243				1,563,703				1,582,641
Loans held for sale			31,791				49,597				42,793				60,924				68,890
Loans			5,925,029				5,905,884				5,437,049				5,661,492				5,735,349
Less: Allowance for credit losses			(83,315	)			(87,823	)			(81,127	)			(86,643	)			(92,733	)
Net Loans			5,841,714				5,818,061				5,355,922				5,574,849				5,642,616
Bank premises and equipment, net			72,404				71,250				69,392				70,385				75,117
Other real estate owned			13,618				13,628				12,804				15,549				12,750
Goodwill			252,154				252,154				221,176				221,176				221,176
Other intangible assets, net			14,845				16,153				14,106				15,382				16,745
Bank owned life insurance			205,041				193,747				158,506				132,634				131,776
Net deferred tax assets			27,321				24,187				21,839				24,497				23,629
Other assets			201,857				153,619				154,457				152,646				162,214
Total Assets		$	9,681,433			$	9,893,498			$	9,316,833			$	8,811,820			$	8,342,392
Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest demand		$	3,075,534			$	3,086,466			$	2,952,160			$	2,685,247			$	2,289,787
Interest-bearing demand			1,890,212				1,845,165				1,763,884				1,647,935				1,566,069
Savings			895,019				834,309				811,516				768,362				689,179
Money market			1,651,881				1,951,639				1,807,190				1,671,179				1,556,370
Other time certificates			404,601				437,973				335,370				373,297				425,878
Brokered time certificates			—				20,000				20,000				93,500				233,815
Time certificates of more than $250,000			150,342				158,620				146,316				146,229				171,463
Total Deposits			8,067,589				8,334,172				7,836,436				7,385,749				6,932,561
Securities sold under agreements to repurchase			121,565				105,548				119,973				109,171				119,609
Federal Home Loan Bank borrowings			—				—				—				—				—
Subordinated debt			71,646				71,576				71,506				71,436				71,365
Other liabilities			109,897				91,682				106,571				90,115				88,455
Total Liabilities			8,370,697				8,602,978				8,134,486				7,656,471				7,211,990
Shareholders' Equity
Common stock			5,850				5,835				5,544				5,529				5,524
Additional paid in capital			963,851				959,644				862,598				858,688				856,092
Retained earnings			358,598				329,918				314,584				290,420				256,701
Treasury stock			(10,569	)			(10,146	)			(10,180	)			(8,693	)			(8,285	)
			1,317,730				1,285,251				1,172,546				1,145,944				1,110,032
Accumulated other comprehensive income, net			(6,994	)			5,269				9,801				9,405				20,370
Total Shareholders' Equity			1,310,736				1,290,520				1,182,347				1,155,349				1,130,402
Total Liabilities & Shareholders' Equity		$	9,681,433			$	9,893,498			$	9,316,833			$	8,811,820			$	8,342,392
Common shares outstanding			58,504				58,349				55,436				55,294				55,243

CONSOLIDATED QUARTERLY FINANCIAL DATA									(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
(Amounts in thousands)	4Q'21				3Q'21				2Q'21				1Q'21				4Q'20
Credit Analysis
Net charge-offs - non-acquired loans	$	541			$	198			$	214			$	292			$	3,028
Net charge-offs - acquired loans		29				1,234				441				78				99
Total Net Charge-offs		570				1,432				655				370				3,127
Net charge-offs to average loans - non-acquired loans		0.04	%			0.01	%			0.02	%			0.02	%			0.20	%
Net charge-offs to average loans - acquired loans		—				0.09				0.03				0.01				0.01
Total Net Charge-offs to Average Loans		0.04				0.10				0.05				0.03				0.21
Allowance for credit losses - non-acquired loans	$	64,710			$	64,740			$	64,525			$	66,523			$	69,786
Allowance for credit losses - acquired loans		18,605				23,083				16,602				20,120				22,947
Total Allowance for Credit Losses	$	83,315			$	87,823			$	81,127			$	86,643			$	92,733
Non-acquired loans at end of period	$	4,860,171			$	4,608,801			$	4,290,622			$	4,208,911			$	4,196,205
Acquired loans at end of period		973,751				1,106,481				782,315				870,928				972,183
Paycheck Protection Program loans at end of period1		91,107				190,602				364,112				581,653				566,961
Total Loans	$	5,925,029			$	5,905,884			$	5,437,049			$	5,661,492			$	5,735,349
Non-acquired loans allowance for credit losses to non-acquired loans at end of period		1.33	%			1.40	%			1.50	%			1.58	%			1.66	%
Total allowance for credit losses to total loans at end of period		1.41				1.49				1.49				1.53				1.62
Total allowance for credit losses to total loans, excluding PPP loans		1.43				1.54				1.60				1.71				1.79
Purchase discount on acquired loans at end of period		2.27				2.27				2.98				2.93				2.86
End of Period
Nonperforming loans	$	30,598			$	32,612			$	32,920			$	35,328			$	36,110
Other real estate owned		12,223				11,843				11,019				10,836				10,182
Properties previously used in bank operations included in other real estate owned		1,395				1,785				1,785				4,713				2,569
Total Nonperforming Assets	$	44,216			$	46,240			$	45,724			$	50,877			$	48,861
Accruing troubled debt restructures (TDRs)	$	3,917			$	4,047			$	4,037			$	4,067			$	4,182
Nonperforming Loans to Loans at End of Period		0.52	%			0.55	%			0.61	%			0.62	%			0.63	%
Nonperforming Assets to Total Assets at End of Period		0.46				0.47				0.49				0.58				0.59
	December 31,				September 30,				June 30,				March 31,				December 31,
Loans		2021				2021				2021				2021				2020
Construction and land development	$	230,824			$	227,459			$	234,347			$	227,117			$	245,108
Commercial real estate - owner occupied		1,197,774				1,201,336				1,127,640				1,133,085				1,141,310
Commercial real estate - non-owner occupied		1,736,439				1,673,587				1,412,439				1,438,365				1,395,854
Residential real estate		1,425,354				1,467,329				1,226,536				1,246,549				1,342,628
Commercial and financial		1,069,356				982,552				900,206				860,813				854,753
Consumer		174,175				163,019				171,769				173,910				188,735
Paycheck Protection Program		91,107				190,602				364,112				581,653				566,961
Total Loans	$	5,925,029			$	5,905,884			$	5,437,049			$	5,661,492			$	5,735,349
13Q'21 includes $39 million in Paycheck Protection Program loans acquired from Legacy Bank of Florida.

AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1														(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	4Q'21										3Q'21										4Q'20
	Average							Yield/			Average							Yield/			Average							Yield/
(Amounts in thousands)	Balance				Interest			Rate			Balance				Interest			Rate			Balance				Interest			Rate
Assets
Earning assets:
Securities:
Taxable	$	2,198,517			$	8,574		1.56	%		$	1,971,520			$	7,775		1.58	%		$	1,496,536			$	6,477		1.73	%
Nontaxable		24,664				176		2.85				25,311				181		2.86				25,943				109		1.68
Total Securities		2,223,181				8,750		1.57				1,996,831				7,956		1.59				1,522,479				6,586		1.73
Federal funds sold and other investments		913,867				828		0.36				1,091,997				867		0.31				197,379				523		1.05
Loans excluding PPP loans		5,804,149				61,135		4.18				5,422,350				58,600		4.29				5,276,224				60,497		4.56
PPP loans		136,942				3,352		9.71				281,724				5,917		8.33				629,855				5,187		3.28
Total Loans		5,941,091				64,487		4.31				5,704,074				64,517		4.49				5,906,079				65,684		4.42
Total Earning Assets		9,078,139				74,065		3.24				8,792,902				73,340		3.31				7,625,937				72,793		3.80
Allowance for credit losses		(88,484	)									(88,412	)									(93,148	)
Cash and due from banks		359,287										386,781										235,519
Premises and equipment		72,148										70,667										76,001
Intangible assets		267,692										254,980										238,631
Bank owned life insurance		195,169										164,879										131,208
Other assets		177,431										171,937										162,248
Total Assets	$	10,061,382									$	9,753,734									$	8,376,396
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand	$	1,960,083			$	183		0.04	%		$	1,891,092			$	219		0.05	%		$	1,458,299			$	249		0.07	%
Savings		866,257				63		0.03				842,018				65		0.03				672,864				166		0.10
Money market		1,851,275				465		0.10				1,860,386				565		0.12				1,523,960				813		0.21
Time deposits		595,230				494		0.33				572,661				583		0.40				911,091				2,104		0.92
Securities sold under agreements to repurchase		106,691				30		0.11				120,507				35		0.12				101,665				42		0.16
Federal Home Loan Bank borrowings		—				—		—				—				—		—				15,978				80		1.99
Other borrowings		71,600				418		2.32				71,530				418		2.32				71,321				436		2.43
Total Interest-Bearing Liabilities		5,451,136				1,653		0.12				5,358,194				1,885		0.14				4,755,178				3,890		0.33
Noninterest demand		3,179,798										2,985,582										2,424,523
Other liabilities		126,762										161,411										85,622
Total Liabilities		8,757,696										8,505,187										7,265,323
Shareholders' equity		1,303,686										1,248,547										1,111,073
Total Liabilities & Equity	$	10,061,382									$	9,753,734									$	8,376,396
Cost of deposits								0.06	%									0.07	%									0.19	%
Interest expense as a % of earning assets								0.07	%									0.09	%									0.20	%
Net interest income as a % of earning assets					$	72,412		3.16	%						$	71,455		3.22	%						$	68,903		3.59	%
1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.
Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.

AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1										(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	Twelve Months Ended December 31, 2021										Twelve Months Ended December 31, 2020
	Average							Yield/			Average							Yield/
(Amounts in thousands, except ratios)	Balance				Interest			Rate			Balance				Interest			Rate
Assets
Earning assets:
Securities:
Taxable	$	1,839,619			$	29,206		1.59	%		$	1,277,441			$	29,718		2.33	%
Nontaxable		25,369				730		2.88				22,164				570		2.57
Total Securities		1,864,988				29,936		1.61				1,299,605				30,288		2.33
Federal funds sold and other investments		829,328				2,990		0.36				239,494				2,497		1.04
Loans excluding PPP loans		5,369,204				230,552		4.29				5,259,653				242,736		4.62
PPP loans		381,860				21,282		5.57				419,154				11,974		2.86
Total Loans		5,751,064				251,834		4.38				5,678,807				254,710		4.49
Total Earning Assets		8,445,380				284,760		3.37				7,217,906				287,495		3.98
Allowance for credit losses		(88,659	)									(81,858	)
Cash and due from banks		332,664										142,314
Premises and equipment		71,771										71,846
Intangible assets		249,089										231,267
Bank owned life insurance		156,599										128,569
Other assets		170,210										149,956
Total Assets	$	9,337,054									$	7,860,000
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand	$	1,787,234			$	895		0.05	%		$	1,324,433			$	1,710		0.13	%
Savings		805,816				383		0.05				610,015				849		0.14
Money market		1,765,444				2,327		0.13				1,294,629				4,361		0.34
Time deposits		602,739				2,788		0.46				1,101,321				13,365		1.21
Securities sold under agreements to repurchase		113,881				141		0.12				84,514				283		0.33
Federal Home Loan Bank borrowings		—				—		—				139,439				1,540		1.10
Other borrowings		71,495				1,685		2.36				71,220				2,184		3.07
Total Interest-Bearing Liabilities		5,146,609				8,219		0.16				4,625,571				24,292		0.53
Noninterest demand		2,851,687										2,107,931
Other liabilities		123,446										81,279
Total Liabilities		8,121,742										6,814,781
Shareholders' equity		1,215,312										1,045,219
Total Liabilities & Equity	$	9,337,054									$	7,860,000
Cost of deposits								0.08	%									0.32	%
Interest expense as a % of earning assets								0.10	%									0.34	%
Net interest income as a % of earning assets					$	276,541		3.27	%						$	263,203		3.65	%
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
			December 31,			September 30,			June 30,			March 31,			December 31,
(Amounts in thousands)				2021			2021			2021			2021			2020
Customer Relationship Funding
Noninterest demand
Commercial			$	2,477,111		$	2,535,922		$	2,431,928		$	2,189,564		$	1,821,361
Retail				458,626			416,779			401,988			379,257			350,783
Public funds				107,523			84,337			88,057			83,315			90,973
Other				32,274			49,428			30,187			33,111			26,670
Total Noninterest Demand				3,075,534			3,086,466			2,952,160			2,685,247			2,289,787
Interest-bearing demand
Commercial				497,466			554,366			545,797			497,047			454,909
Retail				1,144,635			1,069,668			958,619			895,853			839,958
Public funds				248,111			221,131			259,468			255,035			271,202
Total Interest-Bearing Demand				1,890,212			1,845,165			1,763,884			1,647,935			1,566,069
Total transaction accounts
Commercial				2,974,577			3,090,288			2,977,725			2,686,611			2,276,270
Retail				1,603,261			1,486,447			1,360,607			1,275,110			1,190,741
Public funds				355,634			305,468			347,525			338,350			362,175
Other				32,274			49,428			30,187			33,111			26,670
Total Transaction Accounts				4,965,746			4,931,631			4,716,044			4,333,182			3,855,856
Savings				895,019			834,309			811,516			768,362			689,179
Money market
Commercial				732,639			827,901			787,894			692,537			611,623
Retail				840,054			834,628			737,554			701,453			661,311
Brokered				8,007			196,548			187,023			197,389			196,616
Public funds				71,181			92,562			94,719			79,800			86,820
Total Money Market				1,651,881			1,951,639			1,807,190			1,671,179			1,556,370
Brokered time certificates				—			20,000			20,000			93,500			233,815
Other time certificates				554,943			596,593			481,686			519,526			597,341
				554,943			616,593			501,686			613,026			831,156
Total Deposits			$	8,067,589		$	8,334,172		$	7,836,436		$	7,385,749		$	6,932,561
Customer sweep accounts			$	121,565		$	105,548		$	119,973		$	109,171		$	119,609

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																				Twelve Months Ended
(Amounts in thousands, except per share data)	4Q'21				3Q'21				2Q'21				1Q'21				4Q'20				4Q'21				4Q'20
Net Income	$	36,330			$	22,944			$	31,410			$	33,719			$	29,347			$	124,403			$	77,764
Total noninterest income		18,706				19,028				15,322				17,671				14,930				70,727				61,570
Securities losses (gains), net		379				30				55				114				18				578				(1,235	)
Gain on sale of domain name (included in other income)		(755	)			—				—				—				—				(755	)			—
Total Adjustments to Noninterest Income		(376	)			30				55				114				18				(177	)			(1,235	)
Total Adjusted Noninterest Income		18,330				19,058				15,377				17,785				14,948				70,550				60,335
Total noninterest expense		50,263				55,268				45,784				46,120				43,681				197,435				185,552
Merger related charges		(482	)			(6,281	)			(509	)			(581	)			—				(7,853	)			(9,074	)
Amortization of intangibles		(1,304	)			(1,306	)			(1,212	)			(1,211	)			(1,421	)			(5,033	)			(5,857	)
Business continuity expenses		—				—				—				—				—				—				(307	)
Branch reductions and other expense initiatives		(168	)			(870	)			(663	)			(449	)			(354	)			(2,150	)			(818	)
Total Adjustments to Noninterest Expense		(1,954	)			(8,457	)			(2,384	)			(2,241	)			(1,775	)			(15,036	)			(16,056	)
Total Adjusted Noninterest Expense		48,309				46,811				43,400				43,879				41,906				182,399				169,496
Income Taxes		8,344				7,049				8,785				10,157				8,793				34,335				22,818
Tax effect of adjustments		280				2,081				598				577				440				3,536				3,635
Effect of change in corporate tax rate on deferred tax assets		774				—				—				—				—				774				—
Total Adjustments to Income Taxes		1,054				2,081				598				577				440				4,310				3,635
Adjusted Income Taxes		9,398				9,130				9,383				10,734				9,233				38,645				26,453
Adjusted Net Income	$	36,854			$	29,350			$	33,251			$	35,497			$	30,700			$	134,952			$	88,950
Earnings per diluted share, as reported	$	0.62			$	0.40			$	0.56			$	0.60			$	0.53			$	2.18			$	1.44
Adjusted Earnings per Diluted Share		0.62				0.51				0.59				0.63				0.55				2.36				1.65
Average diluted shares outstanding		59,016				57,645				55,901				55,992				55,739				57,088				53,930
Adjusted Noninterest Expense	$	48,309			$	46,811			$	43,400			$	43,879			$	41,906			$	182,399			$	169,496
Provision for credit losses on unfunded commitments		—				(133	)			—				—				795				(133	)			(185	)
Foreclosed property expense and net gain / (loss) on sale		175				(66	)			90				65				(1,821	)			264				(2,263	)
Net Adjusted Noninterest Expense	$	48,484			$	46,612			$	43,490			$	43,944			$	40,880			$	182,530			$	167,048
Revenue	$	90,995			$	90,352			$	81,124			$	84,281			$	83,721			$	346,752			$	324,313
Total Adjustments to Revenue		(376	)			30				55				114				18				(177	)			(1,235	)
Impact of FTE adjustment		123				131				131				131				112				516				460
Adjusted Revenue on a fully taxable equivalent basis	$	90,742			$	90,513			$	81,310			$	84,526			$	83,851			$	347,091			$	323,538
Adjusted Efficiency Ratio		53.43	%			51.50	%			53.49	%			51.99	%			48.75	%			52.59	%			51.63	%
Net Interest Income	$	72,289			$	71,324			$	65,802			$	66,610			$	68,791			$	276,025			$	262,743
Impact of FTE adjustment		123				131				131				131				112				516				460
Net Interest Income including FTE adjustment	$	72,412			$	71,455			$	65,933			$	66,741			$	68,903			$	276,541			$	263,203
Total noninterest income		18,706				19,028				15,322				17,671				14,930				70,727				61,570
Total noninterest expense		50,263				55,268				45,784				46,120				43,681				197,435				185,552
Pre-Tax Pre-Provision Earnings	$	40,855			$	35,215			$	35,471			$	38,292			$	40,152			$	149,833			$	139,221
Total Adjustments to Noninterest Income		(376	)			30				55				114				18				(177	)			(1,235	)
Total Adjustments to Noninterest Expense		(1,779	)			(8,656	)			(2,294	)			(2,176	)			(2,801	)			(14,905	)			(18,504	)
Adjusted Pre-Tax Pre-Provision Earnings	$	42,258			$	43,901			$	37,820			$	40,582			$	42,971			$	164,561			$	156,490
Average Assets	$	10,061,382			$	9,753,734			$	9,025,846			$	8,485,354			$	8,376,396			$	9,337,054			$	7,860,000
Less average goodwill and intangible assets		(267,692	)			(254,980	)			(235,964	)			(237,323	)			(238,631	)			(249,089	)			(231,267	)
Average Tangible Assets	$	9,793,690			$	9,498,754			$	8,789,882			$	8,248,031			$	8,137,765			$	9,087,965			$	7,628,733
Return on Average Assets (ROA)		1.43	%			0.93	%			1.40	%			1.61	%			1.39	%			1.33	%			0.99	%
Impact of removing average intangible assets and related amortization		0.08				0.07				0.08				0.09				0.10				0.08				0.09
Return on Average Tangible Assets (ROTA)		1.51				1.00				1.48				1.70				1.49				1.41				1.08
Impact of other adjustments for Adjusted Net Income		(0.02	)			0.23				0.04				0.05				0.01				0.07				0.09
Adjusted Return on Average Tangible Assets		1.49				1.23				1.52				1.75				1.50				1.48				1.17
Average Shareholders' Equity	$	1,303,686			$	1,248,547			$	1,170,395			$	1,136,416			$	1,111,073			$	1,215,312			$	1,045,219
Less average goodwill and intangible assets		(267,692	)			(254,980	)			(235,964	)			(237,323	)			(238,631	)			(249,089	)			(231,267	)
Average Tangible Equity	$	1,035,994			$	993,567			$	934,431			$	899,093			$	872,442			$	966,223			$	813,952
Return on Average Shareholders' Equity		11.06	%			7.29	%			10.76	%			12.03	%			10.51	%			10.24	%			7.44	%
Impact of removing average intangible assets and related amortization		3.23				2.27				3.12				3.59				3.36				3.03				2.66
Return on Average Tangible Common Equity (ROTCE)		14.29				9.56				13.88				15.62				13.87				13.27				10.10
Impact of other adjustments for Adjusted Net Income		(0.18	)			2.16				0.39				0.39				0.13				0.70				0.83
Adjusted Return on Average Tangible Common Equity		14.11				11.72				14.27				16.01				14.00				13.97				10.93
Loan interest income1	$	64,487			$	64,517			$	60,440			$	62,390			$	65,684			$	251,834			$	254,710
Accretion on acquired loans		(3,520	)			(3,483	)			(2,886	)			(2,868	)			(4,448	)			(12,757	)			(14,977	)
Interest and fees on PPP loans		(3,352	)			(5,917	)			(5,127	)			(6,886	)			(5,187	)			(21,282	)			(11,974	)
Loan interest income excluding PPP and accretion on acquired loans	$	57,615			$	55,117			$	52,427			$	52,636			$	56,049			$	217,795			$	227,759
Yield on loans1		4.31				4.49				4.33				4.39				4.42				4.38				4.49
Impact of accretion on acquired loans		(0.24	)			(0.24	)			(0.21	)			(0.20	)			(0.30	)			(0.22	)			(0.27	)
Impact of PPP loans		(0.13	)			(0.22	)			0.01				(0.04	)			0.11				(0.10	)			0.11
Yield on loans excluding PPP and accretion on acquired loans		3.94	%			4.03	%			4.13	%			4.15	%			4.23	%			4.06	%			4.33	%
Net Interest Income1	$	72,412			$	71,455			$	65,933			$	66,741			$	68,903			$	276,541			$	263,203
Accretion on acquired loans		(3,520	)			(3,483	)			(2,886	)			(2,868	)			(4,448	)			(12,757	)			(14,977	)
Interest and fees on PPP loans		(3,352	)			(5,917	)			(5,127	)			(6,886	)			(5,187	)			(21,282	)			(11,974	)
Net interest income excluding PPP and accretion on acquired loans	$	65,540			$	62,055			$	57,920			$	56,987			$	59,268			$	242,502			$	236,252
Net Interest Margin		3.16				3.22				3.23				3.51				3.59				3.27				3.65
Impact of accretion on acquired loans		(0.15	)			(0.15	)			(0.14	)			(0.15	)			(0.23	)			(0.15	)			(0.21	)
Impact of PPP loans		(0.10	)			(0.18	)			(0.06	)			(0.11	)			0.01				(0.11	)			0.03
Net interest margin excluding PPP and accretion on acquired loans		2.91	%			2.89	%			3.03	%			3.25	%			3.37	%			3.01	%			3.47	%
Security interest income1	$	8,750			$	7,956			$	6,745			$	6,485			$	6,586			$	29,936			$	30,288
Tax equivalent adjustment on securities		(37	)			(38	)			(39	)			(39	)			(23	)			(153	)			(116	)
Security interest income excluding tax equivalent adjustment	$	8,713			$	7,918			$	6,706			$	6,446			$	6,563			$	29,783			$	30,172
Loan interest income1	$	64,487			$	64,517			$	60,440			$	62,390			$	65,684			$	251,834			$	254,710
Tax equivalent adjustment on loans		(86	)			(93	)			(92	)			(92	)			(89	)			(363	)			(344	)
Loan interest income excluding tax equivalent adjustment	$	64,401			$	64,424			$	60,348			$	62,298			$	65,595			$	251,471			$	254,366
Net Interest Income1	$	72,412			$	71,455			$	65,933			$	66,741			$	68,903			$	276,541			$	263,203
Tax equivalent adjustment on securities		(37	)			(38	)			(39	)			(39	)			(23	)			(153	)			(116	)
Tax equivalent adjustment on loans		(86	)			(93	)			(92	)			(92	)			(89	)			(363	)			(344	)
Net interest income excluding tax equivalent adjustment	$	72,289			$	71,324			$	65,802			$	66,610			$	68,791			$	276,025			$	262,743
1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.

 

FAQ

What were Seacoast Banking Corporation's Q4 2021 earnings?

Seacoast reported Q4 2021 net income of $36.3 million, or $0.62 per diluted share.

How much did Seacoast's net income increase in 2021?

The company's net income for 2021 increased by 60% to $124.4 million compared to 2020.

What is the return on average tangible equity reported by SBCF?

Seacoast reported a return on average tangible equity of 14.29% for Q4 2021.

What acquisitions did Seacoast complete recently?

Seacoast completed acquisitions of Sabal Palm Bancorp and Business Bank of Florida in January 2022.

What is the outlook for Seacoast's loan pipelines?

Seacoast's loan pipelines increased by 60% year-over-year, indicating strong future lending opportunities.