Seacoast Reports Fourth Quarter and Full Year 2023 Results
- None.
- None.
Insights
The reported net income and adjusted net income for Seacoast Banking Corporation of Florida indicate a mixed performance. While the net income for Q4 2023 and the full year shows a decline compared to the previous quarter, there is an increase when comparing the full year 2023 to 2022. This could suggest that despite a challenging quarter, the company has overall managed to grow its earnings year-over-year. However, the decline in net income per diluted share from $1.66 in 2022 to $1.23 in 2023 raises concerns about dilution or other factors impacting shareholder value. The increase in adjusted net income for the year points to underlying operational strength when excluding certain non-recurring items.
From an investor's standpoint, the decrease in pre-tax pre-provision earnings in Q4 2023 both quarter-over-quarter and year-over-year may signal potential challenges in revenue generation or cost control. The robust capital position and the increase in tangible book value per share from $14.69 to $15.08 are positive indicators of financial health and capital management. The repurchase of shares below the current book value could be seen as a positive use of capital, signaling management's confidence in the intrinsic value of the company.
Moreover, the planned expense reduction initiative could improve future profitability, but investors should be aware of the associated one-time charges. The lower efficiency ratio in Q4 2023 compared to the previous year suggests improved cost management, although the year-over-year increase might reflect the impact of higher deposit rates on expenses.
Seacoast's strategic measures to manage expenses and their capital position reflect a proactive approach to navigating the current economic environment. The financial sector is sensitive to interest rate changes and Seacoast's report of margin compression and increased interest expense on deposits is consistent with the broader market trend of rising interest rates. Their efforts to counter margin compression through disciplined expense management and investment in higher-yielding securities are critical to maintaining profitability in a rising rate environment.
The bank's loan origination increase, particularly in commercial loans, suggests a strong demand for credit, which could be a positive indicator for future revenue growth. However, the increase in loan originations must be balanced against credit risk, especially in an uncertain economic climate. The reported decline in net interest margin, a key metric for banks, reflects the challenges faced in the current rate environment and will be a critical area to monitor going forward.
Seacoast's focus on maintaining a conservative balance sheet and driving low-cost deposit growth is an important strategy that could provide resilience against potential economic headwinds. The granular, longstanding deposit base is a competitive advantage that supports funding stability. The bank's liquidity position and borrowing capacity are also important factors that contribute to its ability to withstand market volatility.
Seacoast's financial results must be contextualized within the broader economic landscape. The banking industry is currently facing headwinds from a changing interest rate environment, which can squeeze net interest margins and affect profitability. Seacoast's decrease in net interest margin and higher cost of deposits are reflective of these broader economic trends. The bank's strategic response, including selling part of its investment securities portfolio and reinvesting in higher-yielding securities, is an attempt to navigate these challenges and protect its interest income stream.
The bank's capital and liquidity position are particularly noteworthy in the context of economic uncertainty. A strong capital base is crucial for absorbing potential losses and supporting continued lending activities. Seacoast's reported increase in tangible common equity ratio and tangible book value per share are indicators of a robust capital buffer. These measures, along with a conservative balance sheet approach, can provide resilience during economic downturns and are reassuring from a risk management perspective.
Looking ahead, the bank's focus on expense management and investment in low-cost deposit growth could be advantageous. However, the bank's future performance will largely depend on its ability to adapt to economic conditions, manage interest rate risk and maintain asset quality amidst potential credit market fluctuations.
Well-Positioned Balance Sheet with Strong Capital and Liquidity
Strategic Expense Measures Executed
Robust Capital Position Builds Significantly Quarter over Quarter
STUART, Fla., Jan. 25, 2024 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the fourth quarter of 2023 of
Adjusted net income1 for the fourth quarter of 2023 was
Pre-tax pre-provision earnings1 were
For the fourth quarter of 2023, return on average tangible assets was
Charles M. Shaffer, Seacoast's Chairman and CEO, said, "Seacoast once again delivered a quarter of robust financial performance, remaining steadfast in our commitment to driving growth in shareholder value. Throughout the quarter, our dedication to disciplined expense management effectively countered margin compression, which we believe has positioned the Company optimally for the coming year. Looking ahead to the first quarter of 2024, we will execute the second phase of our expense initiative, anticipating one-time charges of approximately
Shaffer added, "Early in the fourth quarter, we took advantage of market conditions and repurchased 546,200 shares of our common stock at
Shaffer concluded, "As we embark on 2024, we remain diligently focused on maintaining our conservative balance sheet principles and carefully managing our expense base while investing to drive low-cost deposit growth. We believe this rigorous approach will support solid capital growth, maintain a broadly diversified and stable funding base, and continue to bolster the Company’s fortress balance sheet while increasing franchise value over the long run.”
Financial Results
Income Statement
- Net income was
$29.5 million , or$0.35 per diluted share, for the fourth quarter of 2023 compared to net income of$31.4 million , or$0.37 per diluted share, for the prior quarter, and$23.9 million , or$0.34 per diluted share, for the prior year quarter. For the year ended December 31, 2023, net income was$104.0 million , or$1.23 per diluted share, compared to$106.5 million , or$1.66 per diluted share, for the year ended December 31, 2022. Adjusted net income1 for the fourth quarter of 2023 was$36.5 million , or$0.43 per diluted share, compared to$39.7 million , or$0.46 per diluted share, for the prior quarter, and$39.9 million , or$0.56 per diluted share, for the prior year quarter. For the year ended December 31, 2023, adjusted net income1 was$154.7 million , or$1.83 per diluted share, compared to$136.1 million , or$2.12 per diluted share, for the year ended December 31, 2022. - Net revenues were
$128.2 million in the fourth quarter of 2023, a decrease of$8.9 million , or7% , compared to the prior quarter, and a decrease of$9.2 million , or7% , compared to the prior year quarter. For the year ended December 31, 2023, net revenues were$567.4 million , an increase of$135.1 million , or31% , compared to the year ended December 31, 2022. Adjusted revenues on a fully taxable equivalent basis1 were$130.8 million in the fourth quarter of 2023, a decrease of$6.9 million , or5% , compared to the prior quarter, and a decrease of$6.7 million , or5% , compared to the prior year quarter. For the year ended December 31, 2023, adjusted revenues on a fully taxable equivalent basis1 were$569.0 million , an increase of$135.1 million , or31% , compared to the year ended December 31, 2022. - Pre-tax pre-provision earnings1 were
$42.0 million in the fourth quarter of 2023, a decrease of3% compared to the third quarter of 2023 and a decrease of9% compared to the fourth quarter of 2022. Pre-tax pre-provision earnings1 for the year ended December 31, 2023 were$172.6 million , an increase of$7.8 million , or5% , when compared to the year ended December 31, 2022. Adjusted pre-tax pre-provision earnings1 were$51.9 million in the fourth quarter of 2023, a decrease of5% compared to the third quarter of 2023 and a decrease of22% compared to the fourth quarter of 2022. Adjusted pre-tax pre-provision earnings1 for the year ended December 31, 2023 were$242.6 million , an increase of$38.9 million , or19% , compared to the year ended December 31, 2022 - Net interest income totaled
$110.8 million in the fourth quarter of 2023, a decrease of$8.5 million , or7% , from the third quarter of 2023 and a decrease of$8.9 million , or7% , compared to the fourth quarter of 2022. During the fourth quarter of 2023, higher interest expense on deposits was driven by higher rates and changes in product mix. Accretion on acquired loans totaled$11.3 million in the fourth quarter of 2023,$14.8 million in the third quarter of 2023, and$9.7 million in the fourth quarter of 2022. For the year ended December 31, 2023, net interest income was$488.2 million , an increase of$122.1 million , or33% , compared to the year ended December 31, 2022. Accretion on acquired loans totaled$56.7 million for the year ended December 31, 2023, compared to$18.4 million for the year ended December 31, 2022. The year-over-year increase in accretion reflects the impact of purchase marks from bank acquisitions in late 2022 and early 2023. - Net interest margin decreased 21 basis points to
3.36% in the fourth quarter of 2023 compared to3.57% in the third quarter of 2023. Excluding the effects of accretion on acquired loans, net interest margin decreased 11 basis points to3.02% in the fourth quarter of 2023 compared to3.13% in the third quarter of 2023. Loan yields contracted eight basis points from the prior quarter to5.85% due to lower accretion of purchase discount on acquired loans. Excluding the effects of accretion on acquired loans, loan yields increased six basis points, from5.34% in the third quarter of 2023 to5.40% in the fourth quarter of 2023. Securities yields increased 10 basis points to3.42% , compared to3.32% in the prior quarter. The cost of deposits increased 21 basis points, from1.79% in the prior quarter, to2.00% for the fourth quarter of 2023.
- Noninterest income totaled
$17.3 million in the fourth quarter of 2023, a decrease of$0.5 million , or3% , compared to the prior quarter, and a decrease of$0.3 million , or2% , compared to the prior year quarter. Results for the fourth quarter of 2023 included$2.9 million in losses on the sale of approximately$82.9 million , or3% , of the bank’s investment securities portfolio. The proceeds were reinvested into longer-duration, higher-yielding securities, with an expected earnback on the transaction of approximately 1.3 years. Offsetting realized losses on sales of securities during the fourth quarter of 2023 was a$0.5 million increase in the value of investments in mutual funds holding CRA-qualified debt securities. Other changes compared to the third quarter of 2023 included the following:- Interchange income increased
$0.7 million , or44% , to$2.4 million , benefiting from an annual volume-based incentive earned from the payment network provider. The Durbin amendment, which limits network interchange fees earned on debit card transactions, became effective for Seacoast on July 1, 2023. - SBA gains increased
$0.3 million , or50% , to$0.9 million due to higher saleable originations. - Other income increased
$0.4 million , or8% , to$4.7 million , reflecting higher loan swap-related income.
- Interchange income increased
- The provision for credit losses was
$4.0 million in the fourth quarter of 2023, compared to$2.7 million in the third quarter of 2023 and$14.1 million in the fourth quarter of 2022. Included in the fourth quarter of 2022 was a$15.0 million day-1 provision associated with two bank acquisitions. - Noninterest expense was
$86.4 million in the fourth quarter of 2023, a decrease of$7.5 million , or8% , compared to the prior quarter, and a decrease of$5.1 million , or6% , compared to the prior year quarter. For the year ended December 31, 2023, noninterest expense was$395.6 million , compared to$267.9 million for the year ended December 31, 2022. Changes compared to the third quarter of 2023 included:- Salaries and wages decreased
$8.0 million to$38.4 million . The third quarter of 2023 included$3.2 million in severance-related expenses arising from the Company’s reduction in workforce. Of the remaining$4.8 million decrease,$1.7 million reflects the full quarter impact of the workforce reduction on salaries expense, and$2.8 million is attributed to higher loan production resulting in higher deferral of salary-related costs. - Marketing expense increased
$1.1 million to$3.0 million reflecting additional investments in branding and targeted campaigns. - Legal and professional fees increased
$0.6 million to$3.3 million in the fourth quarter of 2023, primarily the result of one-time legal fees associated with a closed matter. - FDIC assessments increased
$0.6 million to$2.8 million , with the full year expense reflecting the year-over-year growth in the Company’s asset size. - Foreclosed property expense increased
$0.3 million to$0.6 million in the fourth quarter of 2023 due to write-downs in the value of properties previously used in bank operations. - Other noninterest expenses decreased
$0.7 million to$6.5 million , benefiting from ongoing expense discipline.
- Salaries and wages decreased
- Seacoast recorded
$8.3 million of income tax expense in the fourth quarter of 2023, compared to$9.1 million in the third quarter of 2023, and$7.8 million in the fourth quarter of 2022. Tax benefits related to stock-based compensation totaled$0.6 million in the fourth quarter of 2023, were nominal in the third quarter of 2023, and totaled$0.2 million in the fourth quarter of 2022. - The efficiency ratio was
60.32% in the fourth quarter of 2023, compared to62.60% in the third quarter of 2023 and63.39% in the prior year quarter. The adjusted efficiency ratio1 was60.32% in the fourth quarter of 2023, compared to60.19% in the third quarter of 2023 and51.52% in the prior year quarter. The efficiency ratio for the year ended December 31, 2023 was64.07% compared to60.01% for the year ended December 31, 2022. The adjusted efficiency ratio1 for the year ended December 31, 2023 was57.35% compared to53.03% for the year ended December 31, 2022. The increase in the efficiency ratio in 2023 reflects the impact of higher deposit rates.
Balance Sheet
- At December 31, 2023, the Company had total assets of
$14.6 billion and total shareholders' equity of$2.1 billion . Book value per share was$24.84 as of December 31, 2023, compared to$24.06 as of September 30, 2023, and$22.45 as of December 31, 2022. Tangible book value per share totaled$15.08 as of December 31, 2023 compared to$14.26 at September 30, 2023, and$14.69 as of December 31, 2022. - Debt securities totaled
$2.5 billion as of December 31, 2023, a decrease of$16.9 million , or1% , compared to September 30, 2023. Debt securities include approximately$1.8 billion in securities held at fair value and classified as available for sale. Unrealized losses on debt securities available for sale declined by$73.4 million , or26% , in the fourth quarter of 2023, benefiting from changes in market interest rates. Unrealized losses on available for sale securities are fully reflected in the value presented on the balance sheet. The portfolio also includes$680.3 million in securities classified as held to maturity with a fair value of$558.4 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 increased
$51.8 million during the fourth quarter of 2023, totaling$10.1 billion as of December 31, 2023. The Company continues to exercise a disciplined approach to lending, carefully underwriting loans to strict underwriting guidelines and setting high expectations for risk adjusted returns. - Loan originations were
$477.9 million in the fourth quarter of 2023, an increase of95% compared to$244.6 million in the third quarter of 2023. New add on yields were near8% during the fourth quarter of 2023.- Commercial originations were
$334.2 million during the fourth quarter of 2023, compared to$94.0 million in the third quarter of 2023 and$482.2 million in the fourth quarter of 2022. - SBA originations were
$25.0 million during the fourth quarter of 2023, compared to$12.5 million in the third quarter of 2023 and$7.4 million in the fourth quarter of 2022. - Consumer originations in the fourth quarter of 2023 decreased to
$61.8 million from$76.5 million in the third quarter of 2023 and from$88.7 million in the fourth quarter of 2022. - Closed residential loans retained in the portfolio totaled
$41.2 million in the fourth quarter of 2023, compared to$44.0 million in the third quarter of 2023 and$74.3 million in the fourth quarter of 2022. - Residential loans originated for sale in the secondary market totaled
$15.6 million in the fourth quarter of 2023, compared to$17.6 million in the third quarter of 2023 and$10.7 million in the fourth quarter of 2022.
- Commercial originations were
- Loan pipelines (loans in underwriting and approval or approved and not yet closed) totaled
$393.0 million as of December 31, 2023, an increase of11% from September 30, 2023 and a decrease of13% from December 31, 2022.- Commercial pipelines were
$306.5 million as of December 31, 2023, an increase of18% from$259.4 million at September 30, 2023, and a decrease of21% from$389.7 million at December 31, 2022. - SBA pipelines were
$20.6 million as of December 31, 2023, compared to$41.4 million at September 30, 2023 and$6.0 million at December 31, 2022. - Consumer pipelines were
$18.7 million as of December 31, 2023, a decrease of$5.7 million from$24.5 million at September 30, 2023, and a decrease of49% from$36.6 million at December 31, 2022. - Retained residential pipelines were
$44.4 million as of December 31, 2023, compared to$20.9 million at September 30, 2023, and$17.1 million at December 31, 2022. Residential saleable pipelines were$2.7 million as of December 31, 2023, compared to$6.8 million at September 30, 2023, and$4.2 million at December 31, 2022.
- Commercial pipelines were
- Total deposits were
$11.8 billion as of December 31, 2023, a decrease of$330.9 million when compared to September 30, 2023, and an increase of$1.8 billion , or18% , compared to December 31, 2022. Seacoast’s granular, longstanding deposit base is a hallmark of our franchise and serves as a significant source of strength.- Total customer funding, which includes sweep repurchase accounts and excludes brokered deposits, was
$12.0 billion , declining modestly by$47 million during the fourth quarter of 2023. - Quarter over quarter, attorney IOTA and title company balances declined by nearly
$100 million due to lower real estate activity at year-end. This seasonal dynamic also occurred in the fourth quarter of 2022. - At December 31, 2023, transaction account balances represented
54% of overall deposits. - Noninterest demand deposits represent
30% of overall deposits. - The Company benefits from a granular deposit franchise, with the top ten depositors representing only
4% of total deposits. - Average deposits per banking center were
$153 million at December 31, 2023. - Uninsured deposits represented only
35% of overall deposit accounts as of December 31, 2023. This includes public funds under the Florida Qualified Public Depository program, which provides loss protection to depositors beyond FDIC insurance limits. Excluding such balances, the uninsured and uncollateralized deposits were29% of total deposits. The Company has liquidity sources including cash and lines of credit with the Federal Reserve and Federal Home Loan Bank that represent145% of uninsured deposits, and176% of uninsured and uncollateralized deposits. - Consumer deposits represent
40% of overall deposit funding with an average consumer customer balance of$24 thousand . Commercial deposits represent60% of overall deposit funding with an average business customer balance of$109 thousand .
- Total customer funding, which includes sweep repurchase accounts and excludes brokered deposits, was
- Federal Home Loan Bank advances totaled
$50.0 million at December 31, 2023 with an interest rate of3.23% . In the aggregate, borrowed funds, including FHLB advances, subordinated debt and brokered deposits represented only2.2% of total liabilities as of December 31, 2023. During the fourth quarter of 2023, the Company paid down$245.6 million in FHLB advances and brokered deposits.
Asset Quality
- Credit metrics remain strong, though nonperforming, criticized, and classified loans have increased slightly from historic low levels. The Company maintains robust concentration management, focused on sustaining a diversified and granular loan portfolio.
- Nonperforming loans were
$65.1 million at December 31, 2023, an increase from$41.5 million at September 30, 2023. Nonperforming loans to total loans outstanding were0.65% at December 31, 2023,0.41% at September 30, 2023, and0.35% at December 31, 2022. - Nonperforming assets to total assets increased to
0.50% at December 31, 2023, compared to0.33% at September 30, 2023, and0.26% at December 31, 2022. - The ratio of allowance for credit losses to total loans was
1.48% at December 31, 2023,1.49% at September 30, 2023, and1.40% at December 31, 2022. - Net charge-offs were
$4.7 million in the fourth quarter of 2023, a decrease of$8.0 million from$12.7 million in the third quarter of 2023. - 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
$326 thousand , and the average commercial loan size is$744 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% and246% of total bank-level risk-based capital, respectively, compared to51% and248% , respectively, at September 30, 2023. On a consolidated basis, construction and land development and commercial real estate loans represent45% and228% , 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 December 31, 2023 of
14.6% compared to14.0% at September 30, 2023, and14.8% at December 31, 2022. The Total capital ratio was15.9% , the Common Equity Tier 1 capital ratio was13.9% , and the Tier 1 leverage ratio was11.0% at December 31, 2023. The Company is considered “well capitalized” based on applicable U.S. regulatory capital ratio requirements. - Cash and cash equivalents at December 31, 2023 totaled
$447.2 million . - Tangible common equity to tangible assets was
9.31% at December 31, 2023, compared to8.68% at September 30, 2023, and9.08% at December 31, 2022. If all held-to-maturity securities were adjusted to fair value at December 31, 2023, the tangible common equity ratio would have been8.68% . - At December 31, 2023, in addition to
$447.2 million in cash, the Company had$5.5 billion in available borrowing capacity, including$4.5 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 December 31, 2023 represented176% of uninsured and uncollateralized deposits. - Under its share repurchase program, the Company is authorized to purchase up to
$100 million of its shares of outstanding common stock. Under this program during the fourth quarter of 2023, the Company repurchased 546,200 shares at a weighted average price of$19.80 per share.
Recognition
- In October 2023, Seacoast was recognized among Fortune’s Best Workplaces for Women for 2023. Seacoast sets a leading example by fostering inclusivity, empowering women, and creating a workplace where every individual can reach their full potential.
- Seacoast has been Certified™ by Great Place To Work® for 2023. As the global authority on workplace culture, Great Place To Work® brings 30 years of groundbreaking research and data to recognize workplaces that create the conditions for an overwhelmingly positive employee experience. Seacoast has also earned specific recognition from the South Florida Business Journal, the Orlando Business Journal, American Banker, and the Guide to Greater Gainesville.
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 | |||||||||||||||||||
| 4Q'23 | 3Q'23 | 2Q'23 | 1Q'23 | 4Q'22 | |||||||||||||||
| Selected balance sheet data: | |||||||||||||||||||
| Gross loans | $ | 10,062,940 | $ | 10,011,186 | $ | 10,117,919 | $ | 10,134,395 | $ | 8,144,724 | |||||||||
| Total deposits | 11,776,935 | 12,107,834 | 12,283,267 | 12,309,701 | 9,981,595 | ||||||||||||||
| Total assets | 14,580,249 | 14,823,007 | 15,041,932 | 15,255,408 | 12,145,762 | ||||||||||||||
| Performance measures: | |||||||||||||||||||
| Net income | $ | 29,543 | $ | 31,414 | $ | 31,249 | $ | 11,827 | $ | 23,927 | |||||||||
| Net interest margin | 3.36 | % | 3.57 | % | 3.86 | % | 4.31 | % | 4.36 | % | |||||||||
| Pre-tax pre-provision earnings1 | 42,006 | 43,383 | 40,864 | 46,321 | 45,999 | ||||||||||||||
| Average diluted shares outstanding | 85,336 | 85,666 | 85,536 | 80,717 | 71,374 | ||||||||||||||
| Diluted earnings per share (EPS) | $ | 0.35 | $ | 0.37 | $ | 0.37 | $ | 0.15 | $ | 0.34 | |||||||||
| Return on (annualized): | |||||||||||||||||||
| Average assets (ROA) | 0.80 | % | 0.84 | % | 0.84 | % | 0.34 | % | 0.78 | % | |||||||||
| Average tangible assets (ROTA)2 | 0.99 | 1.04 | 1.06 | 0.52 | 0.94 | ||||||||||||||
| Average tangible common equity (ROTCE)2 | 11.22 | 11.90 | 12.08 | 5.96 | 10.36 | ||||||||||||||
| Tangible common equity to tangible assets2 | 9.31 | 8.68 | 8.53 | 8.36 | 9.08 | ||||||||||||||
| Tangible book value per share2 | $ | 15.08 | $ | 14.26 | $ | 14.24 | $ | 14.25 | $ | 14.69 | |||||||||
| Efficiency ratio | 60.32 | % | 62.60 | % | 67.34 | % | 65.43 | % | 63.39 | % | |||||||||
| Adjusted operating measures1: | |||||||||||||||||||
| Adjusted net income | $ | 36,505 | $ | 39,737 | $ | 49,203 | $ | 29,241 | $ | 39,926 | |||||||||
| Adjusted pre-tax pre-provision earnings | 51,904 | 54,806 | 64,856 | 71,081 | 66,649 | ||||||||||||||
| Adjusted diluted EPS | 0.43 | 0.46 | 0.58 | 0.36 | 0.56 | ||||||||||||||
| Adjusted ROTA2 | 1.04 | % | 1.12 | % | 1.41 | % | 0.90 | % | 1.36 | % | |||||||||
| Adjusted ROTCE2 | 11.80 | 12.79 | 16.08 | 10.34 | 15.05 | ||||||||||||||
| Adjusted efficiency ratio | 60.32 | 60.19 | 56.44 | 53.10 | 51.52 | ||||||||||||||
| Net adjusted noninterest expense as a percent of average tangible assets2 | 2.25 | 2.34 | 2.40 | 2.47 | 2.42 | ||||||||||||||
| Other data: | |||||||||||||||||||
| Market capitalization3 | $ | 2,415,158 | $ | 1,869,891 | $ | 1,880,407 | $ | 2,005,241 | $ | 2,233,761 | |||||||||
| Full-time equivalent employees | 1,541 | 1,570 | 1,670 | 1,650 | 1,490 | ||||||||||||||
| Number of ATMs | 96 | 97 | 96 | 97 | 100 | ||||||||||||||
| Full-service banking offices | 77 | 77 | 78 | 83 | 78 | ||||||||||||||
| 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 January 26th, 2024, at 10:00 a.m. (Eastern Time) to discuss the fourth quarter 2023 earnings results and business trends. Investors may call in (toll-free) by dialing (800) 715-9871 (Conference ID: 4160956). 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
Tracey L. Dexter
Chief Financial Officer
Seacoast Banking Corporation of Florida
(772) 403-0461
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, or expects to acquire, as well as statements with respect to Seacoast's objectives, strategic plans, expectations and intentions and other statements that are not historical facts. Actual results may differ from those set forth in the forward-looking statements.
Forward-looking statements include statements with respect to the Company’s beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates and intentions about future performance and involve known and unknown risks, uncertainties and other factors, which may be beyond the Company’s control, and which may cause the actual results, performance or achievements of Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”) or its wholly-owned banking subsidiary, Seacoast National Bank (“Seacoast Bank”), to be materially different from results, performance or achievements expressed or implied by such forward-looking statements. You should not expect the Company to update any forward-looking statements.
All statements other than statements of historical fact could be forward-looking statements. You can identify these forward-looking statements through the use of words such as "may", "will", "anticipate", "assume", "should", "support", "indicate", "would", "believe", "contemplate", "expect", "estimate", "continue", "further", "plan", "point to", "project", "could", "intend", "target" or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the impact of current and future economic and market conditions generally (including seasonality) and in the financial services industry, nationally and within Seacoast’s primary market areas, including the effects of inflationary pressures, changes in interest rates, slowdowns in economic growth, and the potential for high unemployment rates, as well as the financial stress on borrowers and changes to customer and client behavior and credit risk as a result of the foregoing; potential impacts of 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; 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 (including the impact of continued elevated interest rates on macroeconomic conditions, customer and client behavior, as well as potential reductions in benchmark interest rates and the resulting impacts on net interest income), 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, including heightened inflation; 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, especially as they relate to the value of collateral supporting the Company’s loans; 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, including bank failures; 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; including those impacting vendors and other third parties; fraud or misconduct by internal or external actors, 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 and the escalating conflicts in the Middle East, 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; 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; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding debt ceiling and the federal budget; the risk that the regulatory environment may not be conducive to or may prohibit the consummation of future mergers and/or business combinations, may increase the length of time and amount of the resources required to consummate such transactions, and may reduce the anticipated benefit; and other factors and risks described under “Risk Factors” herein and in any of the Company's subsequent reports filed with the SEC and available on its website at www.sec.gov.
Including, without limitation, those risks and uncertainties described in the Company’s annual report on Form 10-K for the year ended December 31, 2022 and quarterly reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023 and September 30, 2023 under "Special Cautionary Notice Regarding Forward-Looking Statements" and "Risk Factors", and otherwise in the Company’s SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at www.sec.gov.
| FINANCIAL HIGHLIGHTS | (Unaudited) | ||||||||||||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||||||||||
| Quarterly Trends | Twelve Months Ended | ||||||||||||||||||||||
| (Amounts in thousands, except ratios and per share data) | 4Q'23 | 3Q'23 | 2Q'23 | 1Q'23 | 4Q'22 | 4Q'23 | 4Q'22 | ||||||||||||||||
| Summary of Earnings | |||||||||||||||||||||||
| Net income | $ | 29,543 | $ | 31,414 | $ | 31,249 | $ | 11,827 | $ | 23,927 | $ | 104,033 | $ | 106,507 | |||||||||
| Adjusted net income1 | 36,505 | 39,737 | 49,203 | 29,241 | 39,926 | 154,686 | 136,146 | ||||||||||||||||
| Net interest income2 | 111,035 | 119,505 | 127,153 | 131,351 | 119,858 | 489,043 | 366,660 | ||||||||||||||||
| Net interest margin2,3 | 3.36 | % | 3.57 | % | 3.86 | % | 4.31 | % | 4.36 | % | 3.77 | % | 3.69 | % | |||||||||
| Pre-tax pre-provision earnings1 | 42,006 | 43,383 | 40,864 | 46,321 | 45,999 | 172,573 | 164,817 | ||||||||||||||||
| Adjusted pre-tax pre-provision earnings1 | 51,904 | 54,806 | 64,856 | 71,081 | 66,649 | 242,646 | 203,772 | ||||||||||||||||
| Performance Ratios | |||||||||||||||||||||||
| Return on average assets-GAAP basis3 | 0.80 | % | 0.84 | % | 0.84 | % | 0.34 | % | 0.78 | % | 0.71 | % | 0.96 | % | |||||||||
| Return on average tangible assets-GAAP basis3,4 | 0.99 | 1.04 | 1.06 | 0.52 | 0.94 | 0.91 | 1.06 | ||||||||||||||||
| Adjusted return on average tangible assets1,3,4 | 1.04 | 1.12 | 1.41 | 0.90 | 1.36 | 1.12 | 1.27 | ||||||||||||||||
| Pre-tax pre-provision return on average tangible assets1,3,4 | 1.35 | 1.38 | 1.33 | 1.58 | 1.69 | 1.41 | 1.61 | ||||||||||||||||
| Adjusted pre-tax pre-provision return on average tangible assets1,3,4 | 1.48 | 1.55 | 1.85 | 2.18 | 2.28 | 1.76 | 1.91 | ||||||||||||||||
| Net adjusted noninterest expense to average tangible assets1,3,4 | 2.25 | 2.34 | 2.40 | 2.47 | 2.42 | 2.36 | 2.15 | ||||||||||||||||
| Return on average shareholders' equity-GAAP basis3 | 5.69 | 6.01 | 6.05 | 2.53 | 6.03 | 5.14 | 7.51 | ||||||||||||||||
| Return on average tangible common equity-GAAP basis3,4 | 11.22 | 11.90 | 12.08 | 5.96 | 10.36 | 10.38 | 10.70 | ||||||||||||||||
| Adjusted return on average tangible common equity1,3,4 | 11.80 | 12.79 | 16.08 | 10.34 | 15.05 | 12.80 | 12.86 | ||||||||||||||||
| Efficiency ratio5 | 60.32 | 62.60 | 67.34 | 65.43 | 63.39 | 64.07 | 60.01 | ||||||||||||||||
| Adjusted efficiency ratio1 | 60.32 | 60.19 | 56.44 | 53.10 | 51.52 | 57.35 | 53.03 | ||||||||||||||||
| Noninterest income to total revenue (excluding securities gains/losses) | 15.14 | 13.22 | 14.63 | 14.55 | 12.84 | 14.39 | 15.50 | ||||||||||||||||
| Tangible common equity to tangible assets4 | 9.31 | 8.68 | 8.53 | 8.36 | 9.08 | 9.31 | 9.08 | ||||||||||||||||
| Average loan-to-deposit ratio | 83.38 | 82.63 | 83.48 | 82.43 | 77.67 | 82.99 | 73.50 | ||||||||||||||||
| End of period loan-to-deposit ratio | 85.48 | 82.71 | 82.42 | 82.35 | 81.63 | 85.48 | 81.63 | ||||||||||||||||
| Per Share Data | |||||||||||||||||||||||
| Net income diluted-GAAP basis | $ | 0.35 | $ | 0.37 | $ | 0.37 | $ | 0.15 | $ | 0.34 | $ | 1.23 | $ | 1.66 | |||||||||
| Net income basic-GAAP basis | 0.35 | 0.37 | 0.37 | 0.15 | 0.34 | 1.24 | 1.67 | ||||||||||||||||
| Adjusted earnings1 | 0.43 | 0.46 | 0.58 | 0.36 | 0.56 | 1.83 | 2.12 | ||||||||||||||||
| Book value per share common | 24.84 | 24.06 | 24.14 | 24.24 | 22.45 | 24.84 | 22.45 | ||||||||||||||||
| Tangible book value per share | 15.08 | 14.26 | 14.24 | 14.25 | 14.69 | 15.08 | 14.69 | ||||||||||||||||
| Cash dividends declared | 0.18 | 0.18 | 0.18 | 0.17 | 0.17 | 0.71 | 0.64 | ||||||||||||||||
| 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'23 | 3Q'23 | 2Q'23 | 1Q'23 | 4Q'22 | 4Q'23 | 4Q'22 | |||||||||||||||||||
| Interest on securities: | ||||||||||||||||||||||||||
| Taxable | $ | 21,383 | $ | 21,401 | $ | 20,898 | $ | 19,244 | $ | 18,530 | $ | 82,926 | $ | 56,611 | ||||||||||||
| Nontaxable | 55 | 97 | 97 | 105 | 130 | 354 | 546 | |||||||||||||||||||
| Interest and fees on loans | 147,801 | 149,871 | 148,265 | 135,168 | 105,322 | 581,105 | 315,717 | |||||||||||||||||||
| Interest on federal funds sold and other investments | 7,616 | 8,477 | 5,023 | 3,474 | 3,127 | 24,590 | 7,620 | |||||||||||||||||||
| Total Interest Income | 176,855 | 179,846 | 174,283 | 157,991 | 127,109 | 688,975 | 380,494 | |||||||||||||||||||
| Interest on deposits | 44,923 | 38,396 | 27,183 | 16,033 | 3,934 | 126,535 | 7,318 | |||||||||||||||||||
| Interest on time certificates | 15,764 | 16,461 | 14,477 | 5,552 | 1,358 | 52,254 | 2,642 | |||||||||||||||||||
| Interest on borrowed money | 5,349 | 5,683 | 5,660 | 5,254 | 2,108 | 21,946 | 4,372 | |||||||||||||||||||
| Total Interest Expense | 66,036 | 60,540 | 47,320 | 26,839 | 7,400 | 200,735 | 14,332 | |||||||||||||||||||
| Net Interest Income | 110,819 | 119,306 | 126,963 | 131,152 | 119,709 | 488,240 | 366,162 | |||||||||||||||||||
| Provision for credit losses | 3,990 | 2,694 | (764 | ) | 31,598 | 14,129 | 37,518 | 26,183 | ||||||||||||||||||
| Net Interest Income After Provision for Credit Losses | 106,829 | 116,612 | 127,727 | 99,554 | 105,580 | 450,722 | 339,979 | |||||||||||||||||||
| Noninterest income: | ||||||||||||||||||||||||||
| Service charges on deposit accounts | 4,828 | 4,648 | 4,560 | 4,242 | 3,996 | 18,278 | 13,709 | |||||||||||||||||||
| Interchange income | 2,433 | 1,684 | 5,066 | 4,694 | 4,650 | 13,877 | 17,171 | |||||||||||||||||||
| Wealth management income | 3,261 | 3,138 | 3,318 | 3,063 | 2,886 | 12,780 | 11,051 | |||||||||||||||||||
| Mortgage banking fees | 378 | 410 | 576 | 426 | 426 | 1,790 | 3,478 | |||||||||||||||||||
| Insurance agency income | 1,066 | 1,183 | 1,160 | 1,101 | 805 | 4,510 | 805 | |||||||||||||||||||
| SBA gains | 921 | 613 | 249 | 322 | 105 | 2,105 | 842 | |||||||||||||||||||
| BOLI income | 2,220 | 2,197 | 2,068 | 1,916 | 1,526 | 8,401 | 5,572 | |||||||||||||||||||
| Other | 4,668 | 4,307 | 4,755 | 6,574 | 3,239 | 20,304 | 14,559 | |||||||||||||||||||
| 19,775 | 18,180 | 21,752 | 22,338 | 17,633 | 82,045 | 67,187 | ||||||||||||||||||||
| Securities (losses) gains, net | (2,437 | ) | (387 | ) | (176 | ) | 107 | 18 | (2,893 | ) | (1,096 | ) | ||||||||||||||
| Total Noninterest Income | 17,338 | 17,793 | 21,576 | 22,445 | 17,651 | 79,152 | 66,091 | |||||||||||||||||||
| Noninterest expenses: | ||||||||||||||||||||||||||
| Salaries and wages | 38,435 | 46,431 | 45,155 | 47,616 | 45,405 | 177,637 | 130,100 | |||||||||||||||||||
| Employee benefits | 6,678 | 7,206 | 7,472 | 8,562 | 5,300 | 29,918 | 19,026 | |||||||||||||||||||
| Outsourced data processing costs | 8,609 | 8,714 | 20,222 | 14,553 | 9,918 | 52,098 | 27,510 | |||||||||||||||||||
| Telephone / data lines | 1,196 | 1,409 | 1,518 | 1,081 | 1,185 | 5,204 | 3,799 | |||||||||||||||||||
| Occupancy | 6,316 | 6,349 | 7,065 | 6,938 | 5,457 | 26,668 | 18,539 | |||||||||||||||||||
| Furniture and equipment | 2,028 | 2,052 | 2,345 | 2,267 | 1,944 | 8,692 | 6,420 | |||||||||||||||||||
| Marketing | 2,995 | 1,876 | 2,047 | 2,238 | 1,772 | 9,156 | 6,286 | |||||||||||||||||||
| Legal and professional fees | 3,294 | 2,679 | 4,062 | 7,479 | 9,174 | 17,514 | 20,703 | |||||||||||||||||||
| FDIC assessments | 2,813 | 2,258 | 2,116 | 1,443 | 889 | 8,630 | 3,137 | |||||||||||||||||||
| Amortization of intangibles | 6,888 | 7,457 | 7,654 | 6,727 | 4,763 | 28,726 | 9,101 | |||||||||||||||||||
| Foreclosed property expense and net loss (gain) on sale | 573 | 274 | (57 | ) | 195 | (411 | ) | 985 | (1,534 | ) | ||||||||||||||||
| Provision for credit losses on unfunded commitments | — | — | — | 1,239 | — | 1,239 | 1,157 | |||||||||||||||||||
| Other | 6,542 | 7,210 | 8,266 | 7,137 | 6,114 | 29,155 | 23,690 | |||||||||||||||||||
| Total Noninterest Expense | 86,367 | 93,915 | 107,865 | 107,475 | 91,510 | 395,622 | 267,934 | |||||||||||||||||||
| Income Before Income Taxes | 37,800 | 40,490 | 41,438 | 14,524 | 31,721 | 134,252 | 138,136 | |||||||||||||||||||
| Income taxes | 8,257 | 9,076 | 10,189 | 2,697 | 7,794 | 30,219 | 31,629 | |||||||||||||||||||
| Net Income | $ | 29,543 | $ | 31,414 | $ | 31,249 | $ | 11,827 | $ | 23,927 | $ | 104,033 | $ | 106,507 | ||||||||||||
| Per share of common stock: | ||||||||||||||||||||||||||
| Net income diluted | $ | 0.35 | $ | 0.37 | $ | 0.37 | $ | 0.15 | $ | 0.34 | $ | 1.23 | $ | 1.66 | ||||||||||||
| Net income basic | 0.35 | 0.37 | 0.37 | 0.15 | 0.34 | 1.24 | 1.67 | |||||||||||||||||||
| Cash dividends declared | 0.18 | 0.18 | 0.18 | 0.17 | 0.17 | 0.71 | 0.64 | |||||||||||||||||||
| Average diluted shares outstanding | 85,336 | 85,666 | 85,536 | 80,717 | 71,374 | 84,329 | 64,264 | |||||||||||||||||||
| Average basic shares outstanding | 84,817 | 85,142 | 85,022 | 80,151 | 70,770 | 83,800 | 63,707 | |||||||||||||||||||
| 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) | 2023 | 2023 | 2023 | 2023 | 2022 | ||||||||||||||
| Assets | |||||||||||||||||||
| Cash and due from banks | $ | 167,511 | $ | 182,036 | $ | 164,193 | $ | 180,607 | $ | 120,748 | |||||||||
| Interest bearing deposits with other banks | 279,671 | 513,946 | 563,690 | 610,636 | 81,192 | ||||||||||||||
| Total Cash and Cash Equivalents | 447,182 | 695,982 | 727,883 | 791,243 | 201,940 | ||||||||||||||
| Time deposits with other banks | 5,857 | 4,357 | 2,987 | 3,236 | 3,236 | ||||||||||||||
| Debt Securities: | |||||||||||||||||||
| Available for sale (at fair value) | 1,836,020 | 1,841,845 | 1,916,231 | 2,015,967 | 1,871,742 | ||||||||||||||
| Held to maturity (at amortized cost) | 680,313 | 691,404 | 707,812 | 737,911 | 747,408 | ||||||||||||||
| Total Debt Securities | 2,516,333 | 2,533,249 | 2,624,043 | 2,753,878 | 2,619,150 | ||||||||||||||
| Loans held for sale | 4,391 | 2,979 | 5,967 | 2,838 | 3,151 | ||||||||||||||
| Loans | 10,062,940 | 10,011,186 | 10,117,919 | 10,134,395 | 8,144,724 | ||||||||||||||
| Less: Allowance for credit losses | (148,931 | ) | (149,661 | ) | (159,715 | ) | (155,640 | ) | (113,895 | ) | |||||||||
| Net Loans | 9,914,009 | 9,861,525 | 9,958,204 | 9,978,755 | 8,030,829 | ||||||||||||||
| Bank premises and equipment, net | 113,304 | 115,749 | 116,959 | 116,522 | 116,892 | ||||||||||||||
| Other real estate owned | 7,560 | 7,216 | 7,526 | 7,756 | 2,301 | ||||||||||||||
| Goodwill | 732,417 | 731,970 | 732,910 | 728,396 | 480,319 | ||||||||||||||
| Other intangible assets, net | 95,645 | 102,397 | 109,716 | 117,409 | 75,451 | ||||||||||||||
| Bank owned life insurance | 298,974 | 296,763 | 293,880 | 292,545 | 237,824 | ||||||||||||||
| Net deferred tax assets | 113,232 | 131,602 | 127,941 | 124,301 | 94,457 | ||||||||||||||
| Other assets | 331,345 | 339,218 | 333,916 | 338,529 | 280,212 | ||||||||||||||
| Total Assets | $ | 14,580,249 | $ | 14,823,007 | $ | 15,041,932 | $ | 15,255,408 | $ | 12,145,762 | |||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||
| Liabilities | |||||||||||||||||||
| Deposits | |||||||||||||||||||
| Noninterest demand | $ | 3,544,981 | $ | 3,868,132 | $ | 4,139,052 | $ | 4,554,509 | $ | 4,070,973 | |||||||||
| Interest-bearing demand | 2,790,210 | 2,800,152 | 2,816,656 | 2,676,320 | 2,337,590 | ||||||||||||||
| Savings | 651,454 | 721,558 | 824,255 | 940,702 | 1,064,392 | ||||||||||||||
| Money market | 3,314,288 | 3,143,897 | 2,859,164 | 2,893,128 | 1,985,974 | ||||||||||||||
| Other time certificates | 889,806 | 821,406 | 628,036 | 598,483 | 369,389 | ||||||||||||||
| Brokered time certificates | 122,347 | 307,963 | 591,503 | 371,392 | 3,798 | ||||||||||||||
| Time certificates of more than | 463,849 | 444,726 | 424,601 | 275,167 | 149,479 | ||||||||||||||
| Total Deposits | 11,776,935 | 12,107,834 | 12,283,267 | 12,309,701 | 9,981,595 | ||||||||||||||
| Securities sold under agreements to repurchase | 374,573 | 276,450 | 290,156 | 267,606 | 172,029 | ||||||||||||||
| Federal Home Loan Bank borrowings | 50,000 | 110,000 | 160,000 | 385,000 | 150,000 | ||||||||||||||
| Subordinated debt, net | 106,302 | 106,136 | 105,970 | 105,804 | 84,533 | ||||||||||||||
| Other liabilities | 164,353 | 174,193 | 148,507 | 136,213 | 149,830 | ||||||||||||||
| Total Liabilities | 12,472,163 | 12,774,613 | 12,987,900 | 13,204,324 | 10,537,987 | ||||||||||||||
| Shareholders' Equity | |||||||||||||||||||
| Common stock | 8,486 | 8,515 | 8,509 | 8,461 | 7,162 | ||||||||||||||
| Additional paid in capital | 1,808,883 | 1,813,068 | 1,809,431 | 1,803,898 | 1,377,802 | ||||||||||||||
| Retained earnings | 467,305 | 453,117 | 437,087 | 421,271 | 423,863 | ||||||||||||||
| Treasury stock | (16,710 | ) | (14,035 | ) | (14,171 | ) | (13,113 | ) | (13,019 | ) | |||||||||
| 2,267,964 | 2,260,665 | 2,240,856 | 2,220,517 | 1,795,808 | |||||||||||||||
| Accumulated other comprehensive (loss) income, net | (159,878 | ) | (212,271 | ) | (186,824 | ) | (169,433 | ) | (188,033 | ) | |||||||||
| Total Shareholders' Equity | 2,108,086 | 2,048,394 | 2,054,032 | 2,051,084 | 1,607,775 | ||||||||||||||
| Total Liabilities & Shareholders' Equity | $ | 14,580,249 | $ | 14,823,007 | $ | 15,041,932 | $ | 15,255,408 | $ | 12,145,762 | |||||||||
| Common shares outstanding | 84,861 | 85,150 | 85,086 | 84,609 | 71,618 | ||||||||||||||
| CONSOLIDATED QUARTERLY FINANCIAL DATA | (Unaudited) | |||||||||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | ||||||||||||||||||||
| (Amounts in thousands) | 4Q'23 | 3Q'23 | 2Q'23 | 1Q'23 | 4Q'22 | |||||||||||||||
| Credit Analysis | ||||||||||||||||||||
| Net charge-offs (recoveries) | $ | 4,720 | $ | 12,748 | $ | 705 | $ | 3,188 | $ | 782 | ||||||||||
| Net charge-offs (recoveries) to average loans | 0.19 | % | 0.50 | % | 0.03 | % | 0.14 | % | 0.04 | % | ||||||||||
| Allowance for credit losses | $ | 148,931 | $ | 149,661 | $ | 159,715 | $ | 155,640 | $ | 113,895 | ||||||||||
| Non-acquired loans at end of period | $ | 6,571,454 | $ | 6,343,121 | $ | 6,264,044 | $ | 6,048,453 | $ | 5,944,194 | ||||||||||
| Acquired loans at end of period | 3,491,486 | 3,668,065 | 3,853,875 | 4,085,942 | 2,200,530 | |||||||||||||||
| Total Loans | $ | 10,062,940 | $ | 10,011,186 | $ | 10,117,919 | $ | 10,134,395 | $ | 8,144,724 | ||||||||||
| Total allowance for credit losses to total loans at end of period | 1.48 | % | 1.49 | % | 1.58 | % | 1.54 | % | 1.40 | % | ||||||||||
| Purchase discount on acquired loans at end of period | 4.75 | 4.86 | 4.98 | 5.02 | 4.25 | |||||||||||||||
| End of Period | ||||||||||||||||||||
| Nonperforming loans | $ | 65,104 | $ | 41,508 | $ | 48,326 | $ | 50,787 | $ | 28,843 | ||||||||||
| Other real estate owned | 221 | 221 | 530 | 530 | 530 | |||||||||||||||
| Properties previously used in bank operations included in other real estate owned | 7,339 | 6,995 | 6,996 | 7,226 | 1,771 | |||||||||||||||
| Total Nonperforming Assets | $ | 72,664 | $ | 48,724 | $ | 55,852 | $ | 58,543 | $ | 31,144 | ||||||||||
| Nonperforming Loans to Loans at End of Period | 0.65 | % | 0.41 | % | 0.48 | % | 0.50 | % | 0.35 | % | ||||||||||
| Nonperforming Assets to Total Assets at End of Period | 0.50 | 0.33 | 0.37 | 0.38 | 0.26 | |||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| Loans | 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||
| Construction and land development | $ | 767,622 | $ | 793,736 | $ | 794,371 | $ | 757,835 | $ | 587,332 | ||||||||||
| Commercial real estate - owner occupied | 1,670,281 | 1,675,881 | 1,669,369 | 1,652,491 | 1,478,302 | |||||||||||||||
| Commercial real estate - non-owner occupied | 3,319,890 | 3,285,974 | 3,370,211 | 3,412,051 | 2,589,774 | |||||||||||||||
| Residential real estate | 2,445,692 | 2,418,903 | 2,396,352 | 2,354,394 | 1,849,503 | |||||||||||||||
| Commercial and financial | 1,607,888 | 1,588,152 | 1,615,534 | 1,655,884 | 1,353,226 | |||||||||||||||
| Consumer | 251,567 | 248,540 | 272,082 | 301,740 | 286,587 | |||||||||||||||
| Total Loans | $ | 10,062,940 | $ | 10,011,186 | $ | 10,117,919 | $ | 10,134,395 | $ | 8,144,724 | ||||||||||
| AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1 | (Unaudited) | ||||||||||||||||||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||||||||||||||||
| 4Q'23 | 3Q'23 | 4Q'22 | |||||||||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | Average | Yield/ | ||||||||||||||||||||||||
| (Amounts in thousands) | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Earning assets: | |||||||||||||||||||||||||||||
| Securities: | |||||||||||||||||||||||||||||
| Taxable | $ | 2,499,047 | $ | 21,383 | 3.42 | % | $ | 2,575,002 | $ | 21,401 | 3.32 | % | $ | 2,680,813 | $ | 18,530 | 2.76 | % | |||||||||||
| Nontaxable | 7,835 | 68 | 3.48 | 15,280 | 119 | 3.11 | 20,246 | 164 | 3.24 | ||||||||||||||||||||
| Total Securities | 2,506,882 | 21,451 | 3.42 | 2,590,282 | 21,520 | 3.32 | 2,701,059 | 18,694 | 2.77 | ||||||||||||||||||||
| Federal funds sold | 465,506 | 6,426 | 5.48 | 547,576 | 7,415 | 5.37 | 155,815 | 1,410 | 3.59 | ||||||||||||||||||||
| Interest bearing deposits with other banks and other investments | 91,230 | 1,190 | 5.18 | 90,039 | 1,062 | 4.68 | 141,179 | 1,717 | 4.83 | ||||||||||||||||||||
| Total Loans, net | 10,033,245 | 148,004 | 5.85 | 10,043,611 | 150,048 | 5.93 | 7,910,729 | 105,437 | 5.29 | ||||||||||||||||||||
| Total Earning Assets | 13,096,863 | 177,071 | 5.36 | 13,271,508 | 180,045 | 5.38 | 10,908,782 | 127,258 | 4.63 | ||||||||||||||||||||
| Allowance for credit losses | (149,110 | ) | (158,440 | ) | (109,509 | ) | |||||||||||||||||||||||
| Cash and due from banks | 179,908 | 168,931 | 137,839 | ||||||||||||||||||||||||||
| Premises and equipment | 115,556 | 116,704 | 115,095 | ||||||||||||||||||||||||||
| Intangible assets | 832,029 | 839,787 | 521,412 | ||||||||||||||||||||||||||
| Bank owned life insurance | 297,525 | 295,272 | 237,062 | ||||||||||||||||||||||||||
| Other assets including deferred tax assets | 365,263 | 372,241 | 329,175 | ||||||||||||||||||||||||||
| Total Assets | $ | 14,738,034 | $ | 14,906,003 | $ | 12,139,856 | |||||||||||||||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||
| Interest-bearing demand | $ | 2,819,743 | $ | 15,658 | 2.20 | % | $ | 2,804,243 | $ | 15,013 | 2.12 | % | $ | 2,303,324 | $ | 1,859 | 0.32 | % | |||||||||||
| Savings | 679,720 | 505 | 0.29 | 770,503 | 465 | 0.24 | 1,126,540 | 203 | 0.07 | ||||||||||||||||||||
| Money market | 3,268,829 | 28,760 | 3.49 | 2,972,495 | 22,918 | 3.06 | 1,980,870 | 1,872 | 0.37 | ||||||||||||||||||||
| Time deposits | 1,524,460 | 15,764 | 4.1 | 1,619,572 | 16,461 | 4.03 | 500,441 | 1,358 | 1.08 | ||||||||||||||||||||
| Securities sold under agreements to repurchase | 335,559 | 2,991 | 3.54 | 327,711 | 2,876 | 3.48 | 134,709 | 544 | 1.60 | ||||||||||||||||||||
| Federal Home Loan Bank borrowings | 59,022 | 442 | 2.97 | 111,087 | 888 | 3.17 | 40,712 | 330 | 3.22 | ||||||||||||||||||||
| Subordinated debt | 106,205 | 1,916 | 7.16 | 106,036 | 1,919 | 7.18 | 83,534 | 1,234 | 5.86 | ||||||||||||||||||||
| Total Interest-Bearing Liabilities | 8,793,538 | 66,036 | 2.98 | 8,711,647 | 60,540 | 2.76 | 6,170,130 | 7,400 | 0.48 | ||||||||||||||||||||
| Noninterest demand | 3,739,993 | 3,987,761 | 4,273,922 | ||||||||||||||||||||||||||
| Other liabilities | 145,591 | 133,846 | 122,100 | ||||||||||||||||||||||||||
| Total Liabilities | 12,679,122 | 12,833,254 | 10,566,152 | ||||||||||||||||||||||||||
| Shareholders' equity | 2,058,912 | 2,072,747 | 1,573,704 | ||||||||||||||||||||||||||
| Total Liabilities & Equity | $ | 14,738,034 | $ | 14,906,003 | $ | 12,139,856 | |||||||||||||||||||||||
| Cost of deposits | 2.00 | % | 1.79 | % | 0.21 | % | |||||||||||||||||||||||
| Interest expense as a % of earning assets | 2.00 | % | 1.81 | % | 0.27 | % | |||||||||||||||||||||||
| Net interest income as a % of earning assets | $ | 111,035 | 3.36 | % | $ | 119,505 | 3.57 | % | $ | 119,858 | 4.36 | % | |||||||||||||||||
| 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, 2023 | Twelve Months Ended December 31, 2022 | ||||||||||||||||||
| Average | Yield/ | Average | Yield/ | ||||||||||||||||
| (Amounts in thousands) | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||
| Assets | |||||||||||||||||||
| Earning assets: | |||||||||||||||||||
| Securities: | |||||||||||||||||||
| Taxable | $ | 2,611,299 | $ | 82,926 | 3.18 | % | $ | 2,568,568 | $ | 56,611 | 2.20 | % | |||||||
| Nontaxable | 13,733 | 438 | 3.19 | 22,188 | 690 | 3.11 | |||||||||||||
| Total Securities | 2,625,032 | 83,364 | 3.18 | 2,590,756 | 57,301 | 2.21 | |||||||||||||
| Federal funds sold | 368,659 | 18,871 | 5.12 | 433,359 | 4,103 | 0.95 | |||||||||||||
| Interest bearing deposits with other banks and other investments | 90,692 | 5,718 | 6.30 | 69,604 | 3,517 | 5.05 | |||||||||||||
| Total Loans, net | 9,889,070 | 581,825 | 5.88 | 6,838,266 | 316,073 | 4.62 | |||||||||||||
| Total Earning Assets | 12,973,453 | 689,778 | 5.32 | 9,931,985 | 380,994 | 3.84 | |||||||||||||
| Allowance for credit losses | (150,982 | ) | (94,693 | ) | |||||||||||||||
| Cash and due from banks | 184,035 | 305,775 | |||||||||||||||||
| Premises and equipment | 116,516 | 85,568 | |||||||||||||||||
| Intangible assets | 816,662 | 360,217 | |||||||||||||||||
| Bank owned life insurance | 290,218 | 214,468 | |||||||||||||||||
| Other assets including deferred tax assets | 392,872 | 248,108 | |||||||||||||||||
| Total Assets | $ | 14,622,774 | $ | 11,051,428 | |||||||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||
| Interest-bearing demand | $ | 2,686,936 | $ | 41,438 | 1.54 | % | $ | 2,220,307 | $ | 3,099 | 0.14 | % | |||||||
| Savings | 851,347 | 1,796 | 0.21 | 989,997 | 397 | 0.04 | |||||||||||||
| Money market | 2,941,916 | 83,300 | 2.83 | 1,925,176 | 3,824 | 0.2 | |||||||||||||
| Time deposits | 1,348,152 | 52,254 | 3.88 | 500,471 | 2,642 | 0.53 | |||||||||||||
| Securities sold under agreements to repurchase | 270,999 | 8,324 | 3.07 | 121,318 | 986 | 0.81 | |||||||||||||
| Federal Home Loan Bank borrowings | 175,247 | 6,378 | 3.64 | 10,264 | 330 | 3.22 | |||||||||||||
| Subordinated debt | 104,158 | 7,245 | 6.96 | 74,713 | 3,056 | 4.09 | |||||||||||||
| Total Interest-Bearing Liabilities | 8,378,755 | 200,735 | 2.40 | 5,842,246 | 14,334 | 0.25 | |||||||||||||
| Noninterest demand | 4,087,335 | 3,667,345 | |||||||||||||||||
| Other liabilities | 131,302 | 122,982 | |||||||||||||||||
| Total Liabilities | 12,597,392 | 9,632,573 | |||||||||||||||||
| Shareholders' equity | 2,025,382 | 1,418,855 | |||||||||||||||||
| Total Liabilities & Equity | $ | 14,622,774 | $ | 11,051,428 | |||||||||||||||
| Cost of deposits | 1.50 | % | 0.11 | % | |||||||||||||||
| Interest expense as a % of earning assets | 1.55 | % | 0.14 | % | |||||||||||||||
| Net interest income as a % of earning assets | $ | 489,043 | 3.77 | % | $ | 366,660 | 3.69 | % | |||||||||||
| 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 | ||||||||||||||
| (Amounts in thousands) | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | |||||||||
| Customer Relationship Funding | ||||||||||||||
| Noninterest demand | ||||||||||||||
| Commercial | $ | 2,752,644 | $ | 3,089,488 | $ | 3,304,761 | $ | 3,622,441 | $ | 3,148,778 | ||||
| Retail | 561,569 | 570,727 | 615,536 | 673,686 | 764,274 | |||||||||
| Public funds | 173,893 | 134,649 | 152,159 | 194,977 | 112,553 | |||||||||
| Other | 56,875 | 73,268 | 66,596 | 63,405 | 45,368 | |||||||||
| Total Noninterest Demand | 3,544,981 | 3,868,132 | 4,139,052 | 4,554,509 | 4,070,973 | |||||||||
| Interest-bearing demand | ||||||||||||||
| Commercial | 1,576,491 | 1,618,755 | 1,555,486 | 1,233,845 | 886,894 | |||||||||
| Retail | 956,900 | 994,224 | 1,058,993 | 1,209,664 | 1,191,192 | |||||||||
| Brokered | — | — | — | 44,474 | 54,777 | |||||||||
| Public funds | 256,819 | 187,173 | 202,177 | 188,337 | 204,727 | |||||||||
| Total Interest-Bearing Demand | 2,790,210 | 2,800,152 | 2,816,656 | 2,676,320 | 2,337,590 | |||||||||
| Total transaction accounts | ||||||||||||||
| Commercial | 4,329,135 | 4,708,243 | 4,860,247 | 4,856,286 | 4,035,672 | |||||||||
| Retail | 1,518,469 | 1,564,951 | 1,674,529 | 1,883,350 | 1,955,466 | |||||||||
| Brokered | — | — | — | 44,474 | 54,777 | |||||||||
| Public funds | 430,712 | 321,822 | 354,336 | 383,314 | 317,280 | |||||||||
| Other | 56,875 | 73,268 | 66,596 | 63,405 | 45,368 | |||||||||
| Total Transaction Accounts | 6,335,191 | 6,668,284 | 6,955,708 | 7,230,829 | 6,408,563 | |||||||||
| Savings | ||||||||||||||
| Commercial | 58,562 | 79,731 | 101,908 | 108,023 | 91,943 | |||||||||
| Retail | 592,892 | 641,827 | 722,347 | 832,679 | 972,449 | |||||||||
| Total Savings | 651,454 | 721,558 | 824,255 | 940,702 | 1,064,392 | |||||||||
| Money market | ||||||||||||||
| Commercial | 1,655,820 | 1,625,455 | 1,426,348 | 1,542,220 | 932,518 | |||||||||
| Retail | 1,469,142 | 1,362,390 | 1,275,721 | 1,279,712 | 984,561 | |||||||||
| Public funds | 189,326 | 156,052 | 157,095 | 71,196 | 68,895 | |||||||||
| Total Money Market | 3,314,288 | 3,143,897 | 2,859,164 | 2,893,128 | 1,985,974 | |||||||||
| Brokered time certificates | 122,347 | 307,963 | 591,503 | 371,392 | 3,798 | |||||||||
| Other time certificates | 1,353,655 | 1,266,132 | 1,052,637 | 873,650 | 518,868 | |||||||||
| 1,476,002 | 1,574,095 | 1,644,140 | 1,245,042 | 522,666 | ||||||||||
| Total Deposits | $ | 11,776,935 | $ | 12,107,834 | $ | 12,283,267 | $ | 12,309,701 | $ | 9,981,595 | ||||
| Customer sweep accounts | 374,573 | 276,450 | 290,156 | 267,606 | 172,029 | |||||||||
| Total customer funding (1) | $ | 12,029,161 | $ | 12,076,321 | $ | 11,981,920 | $ | 12,205,915 | $ | 10,149,826 | ||||
| (1)Total deposits and customer sweep accounts, excluding brokered deposits. | ||||||||||||||
| 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'23 | 3Q'23 | 2Q'23 | 1Q'23 | 4Q'22 | 4Q'23 | 4Q'22 | |||||||||||||||
| Net Income | $ | 29,543 | $ | 31,414 | $ | 31,249 | $ | 11,827 | $ | 23,927 | $ | 104,033 | $ | 106,507 | ||||||||
| Total noninterest income | 17,338 | 17,793 | 21,576 | 22,445 | 17,651 | 79,152 | 66,091 | |||||||||||||||
| Securities losses (gains), net | 2,437 | 387 | 176 | (107 | ) | (18 | ) | 2,893 | 1,096 | |||||||||||||
| BOLI benefits on death (included in other income) | — | — | — | (2,117 | ) | — | (2,117 | ) | — | |||||||||||||
| Total Adjustments to Noninterest Income | 2,437 | 387 | 176 | (2,224 | ) | (18 | ) | 776 | 1,096 | |||||||||||||
| Total Adjusted Noninterest Income | 19,775 | 18,180 | 21,752 | 20,221 | 17,633 | 79,928 | 67,187 | |||||||||||||||
| Total noninterest expense | 86,367 | 93,915 | 107,865 | 107,475 | 91,510 | 395,622 | 267,934 | |||||||||||||||
| Total merger related charges | — | — | (15,648 | ) | (17,532 | ) | (16,140 | ) | (33,180 | ) | (27,925 | ) | ||||||||||
| Amortization of intangibles | (6,888 | ) | (7,457 | ) | (7,654 | ) | (6,727 | ) | (4,763 | ) | (28,726 | ) | (9,101 | ) | ||||||||
| Branch reductions and other expense initiatives | — | (3,305 | ) | (571 | ) | (1,291 | ) | (176 | ) | (5,167 | ) | (1,210 | ) | |||||||||
| Total Adjustments to Noninterest Expense | (6,888 | ) | (10,762 | ) | (23,873 | ) | (25,550 | ) | (21,079 | ) | (67,073 | ) | (38,236 | ) | ||||||||
| Total Adjusted Noninterest Expense | 79,479 | 83,153 | 83,992 | 81,925 | 70,431 | 328,549 | 229,698 | |||||||||||||||
| Income Taxes | 8,257 | 9,076 | 10,189 | 2,697 | 7,794 | 30,219 | 31,629 | |||||||||||||||
| Tax effect of adjustments | 2,363 | 2,826 | 6,095 | 5,912 | 5,062 | 17,196 | 9,693 | |||||||||||||||
| Adjusted Income Taxes | 10,620 | 11,902 | 16,284 | 8,609 | 12,856 | 47,415 | 41,322 | |||||||||||||||
| Adjusted Net Income | $ | 36,505 | $ | 39,737 | $ | 49,203 | $ | 29,241 | $ | 39,926 | $ | 154,686 | $ | 136,146 | ||||||||
| Earnings per diluted share, as reported | $ | 0.35 | $ | 0.37 | $ | 0.37 | $ | 0.15 | $ | 0.34 | $ | 1.23 | $ | 1.66 | ||||||||
| Adjusted Earnings per Diluted Share | 0.43 | 0.46 | 0.58 | 0.36 | 0.56 | 1.83 | 2.12 | |||||||||||||||
| Average diluted shares outstanding | 85,336 | 85,666 | 85,536 | 80,717 | 71,374 | 84,329 | 64,264 | |||||||||||||||
| Adjusted Noninterest Expense | $ | 79,479 | $ | 83,153 | $ | 83,992 | $ | 81,925 | $ | 70,431 | $ | 328,549 | $ | 229,698 | ||||||||
| Provision for credit losses on unfunded commitments | — | — | — | (1,239 | ) | — | (1,239 | ) | (1,157 | ) | ||||||||||||
| Foreclosed property expense and net loss (gain) on sale | (573 | ) | (274 | ) | 57 | (195 | ) | 411 | (985 | ) | 1,534 | |||||||||||
| Net Adjusted Noninterest Expense | $ | 78,906 | $ | 82,879 | $ | 84,049 | $ | 80,491 | $ | 70,842 | $ | 326,325 | $ | 230,075 | ||||||||
| Revenue | $ | 128,157 | $ | 137,099 | $ | 148,539 | $ | 153,597 | $ | 137,360 | $ | 567,392 | $ | 432,253 | ||||||||
| Total Adjustments to Revenue | 2,437 | 387 | 176 | (2,224 | ) | (18 | ) | 776 | 1,096 | |||||||||||||
| Impact of FTE adjustment | 216 | 199 | 190 | 199 | 149 | 803 | 498 | |||||||||||||||
| Adjusted Revenue on a fully taxable equivalent basis | $ | 130,810 | $ | 137,685 | $ | 148,905 | $ | 151,572 | $ | 137,491 | $ | 568,971 | $ | 433,847 | ||||||||
| Adjusted Efficiency Ratio | 60.32 | % | 60.19 | % | 56.44 | % | 53.10 | % | 51.52 | % | 57.35 | % | 53.03 | % | ||||||||
| Net Interest Income | $ | 110,819 | $ | 119,306 | $ | 126,963 | $ | 131,152 | $ | 119,709 | $ | 488,240 | $ | 366,162 | ||||||||
| Impact of FTE adjustment | 216 | 199 | 190 | 199 | 149 | 803 | 498 | |||||||||||||||
| Net Interest Income including FTE adjustment | $ | 111,035 | $ | 119,505 | $ | 127,153 | $ | 131,351 | $ | 119,858 | $ | 489,043 | $ | 366,660 | ||||||||
| Total noninterest income | 17,338 | 17,793 | 21,576 | 22,445 | 17,651 | 79,152 | 66,091 | |||||||||||||||
| Total noninterest expense | 86,367 | 93,915 | 107,865 | 107,475 | 91,510 | 395,622 | 267,934 | |||||||||||||||
| Pre-Tax Pre-Provision Earnings | $ | 42,006 | $ | 43,383 | $ | 40,864 | $ | 46,321 | $ | 45,999 | $ | 172,573 | $ | 164,817 | ||||||||
| Total Adjustments to Noninterest Income | 2,437 | 387 | 176 | (2,224 | ) | (18 | ) | 776 | 1,096 | |||||||||||||
| Total Adjustments to Noninterest Expense | (7,461 | ) | (11,036 | ) | (23,816 | ) | (26,984 | ) | (20,668 | ) | (69,297 | ) | (37,859 | ) | ||||||||
| Adjusted Pre-Tax Pre-Provision Earnings | $ | 51,904 | $ | 54,806 | $ | 64,856 | $ | 71,081 | $ | 66,649 | $ | 242,646 | $ | 203,772 | ||||||||
| Average Assets | $ | 14,738,034 | $ | 14,906,003 | $ | 14,887,289 | $ | 13,947,976 | $ | 12,139,856 | $ | 14,622,774 | $ | 11,051,428 | ||||||||
| Less average goodwill and intangible assets | (832,029 | ) | (839,787 | ) | (842,988 | ) | (750,694 | ) | (521,412 | ) | (816,662 | ) | (360,217 | ) | ||||||||
| Average Tangible Assets | $ | 13,906,005 | $ | 14,066,216 | $ | 14,044,301 | $ | 13,197,282 | $ | 11,618,444 | $ | 13,806,112 | $ | 10,691,211 | ||||||||
| 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'23 | 3Q'23 | 2Q'23 | 1Q'23 | 4Q'22 | 4Q'23 | 4Q'22 | |||||||||||||||
| Return on Average Assets (ROA) | 0.80 | % | 0.84 | % | 0.84 | % | 0.34 | % | 0.78 | % | 0.71 | % | 0.96 | % | ||||||||
| Impact of removing average intangible assets and related amortization | 0.19 | 0.20 | 0.22 | 0.18 | 0.16 | 0.20 | 0.10 | |||||||||||||||
| Return on Average Tangible Assets (ROTA) | 0.99 | 1.04 | 1.06 | 0.52 | 0.94 | 0.91 | 1.06 | |||||||||||||||
| Impact of other adjustments for Adjusted Net Income | 0.05 | 0.08 | 0.35 | 0.38 | 0.42 | 0.21 | 0.21 | |||||||||||||||
| Adjusted Return on Average Tangible Assets | 1.04 | 1.12 | 1.41 | 0.90 | 1.36 | 1.12 | 1.27 | |||||||||||||||
| Pre-Tax Pre-Provision return on Average Tangible Assets | 1.35 | % | 1.38 | % | 1.33 | % | 1.58 | % | 1.69 | % | 1.41 | % | 1.61 | % | ||||||||
| Impact of adjustments on Pre-Tax Pre-Provision earnings | 0.13 | 0.17 | 0.52 | 0.60 | 0.59 | 0.35 | 0.30 | |||||||||||||||
| Adjusted Pre-Tax Pre-Provision Return on Tangible Assets | 1.48 | 1.55 | 1.85 | 2.18 | 2.28 | 1.76 | 1.91 | |||||||||||||||
| Average Shareholders' Equity | $ | 2,058,912 | $ | 2,072,747 | $ | 2,070,529 | $ | 1,897,045 | $ | 1,573,704 | $ | 2,025,382 | $ | 1,418,855 | ||||||||
| Less average goodwill and intangible assets | (832,029 | ) | (839,787 | ) | (842,988 | ) | (750,694 | ) | (521,412 | ) | (816,662 | ) | (360,217 | ) | ||||||||
| Average Tangible Equity | $ | 1,226,883 | $ | 1,232,960 | $ | 1,227,541 | $ | 1,146,351 | $ | 1,052,292 | $ | 1,208,720 | $ | 1,058,638 | ||||||||
| Return on Average Shareholders' Equity | 5.69 | % | 6.01 | % | 6.05 | % | 2.53 | % | 6.03 | % | 5.14 | % | 7.51 | % | ||||||||
| Impact of removing average intangible assets and related amortization | 5.53 | 5.89 | 6.03 | 3.43 | 4.33 | 5.24 | 3.19 | |||||||||||||||
| Return on Average Tangible Common Equity (ROTCE) | 11.22 | 11.90 | 12.08 | 5.96 | 10.36 | 10.38 | 10.70 | |||||||||||||||
| Impact of other adjustments for Adjusted Net Income | 0.58 | 0.89 | 4.00 | 4.38 | 4.69 | 2.42 | 2.16 | |||||||||||||||
| Adjusted Return on Average Tangible Common Equity | 11.80 | 12.79 | 16.08 | 10.34 | 15.05 | 12.80 | 12.86 | |||||||||||||||
| Loan interest income1 | $ | 148,004 | $ | 150,048 | $ | 148,432 | $ | 135,341 | $ | 105,437 | $ | 581,825 | $ | 316,073 | ||||||||
| Accretion on acquired loans | (11,324 | ) | (14,843 | ) | (14,580 | ) | (15,942 | ) | (9,710 | ) | (56,689 | ) | (18,389 | ) | ||||||||
| Loan interest income excluding accretion on acquired loans | $ | 136,680 | $ | 135,205 | $ | 133,852 | $ | 119,399 | $ | 95,727 | $ | 525,136 | $ | 297,684 | ||||||||
| Yield on loans1 | 5.85 | 5.93 | 5.89 | 5.86 | 5.29 | 5.88 | 4.62 | |||||||||||||||
| Impact of accretion on acquired loans | (0.45 | ) | (0.59 | ) | (0.58 | ) | (0.69 | ) | (0.49 | ) | (0.57 | ) | (0.27 | ) | ||||||||
| Yield on loans excluding accretion on acquired loans | 5.40 | % | 5.34 | % | 5.31 | % | 5.17 | % | 4.80 | % | 5.31 | % | 4.35 | % | ||||||||
| Net Interest Income1 | $ | 111,035 | $ | 119,505 | $ | 127,153 | $ | 131,351 | $ | 119,858 | $ | 489,043 | $ | 366,660 | ||||||||
| Accretion on acquired loans | (11,324 | ) | (14,843 | ) | (14,580 | ) | (15,942 | ) | (9,710 | ) | (56,689 | ) | (18,389 | ) | ||||||||
| Net interest income excluding accretion on acquired loans | $ | 99,711 | $ | 104,662 | $ | 112,573 | $ | 115,409 | $ | 110,148 | $ | 432,354 | $ | 348,271 | ||||||||
| Net Interest Margin | 3.36 | 3.57 | 3.86 | 4.31 | 4.36 | 3.77 | 3.69 | |||||||||||||||
| Impact of accretion on acquired loans | (0.34 | ) | (0.44 | ) | (0.44 | ) | (0.53 | ) | (0.35 | ) | (0.44 | ) | (0.18 | ) | ||||||||
| Net interest margin excluding accretion on acquired loans | 3.02 | % | 3.13 | % | 3.42 | % | 3.78 | % | 4.01 | % | 3.33 | % | 3.51 | % | ||||||||
| Security interest income1 | $ | 21,451 | $ | 21,520 | $ | 21,018 | $ | 19,375 | $ | 18,694 | $ | 83,364 | $ | 57,301 | ||||||||
| Tax equivalent adjustment on securities | (13 | ) | (22 | ) | (23 | ) | (26 | ) | (34 | ) | (83 | ) | (142 | ) | ||||||||
| Security interest income excluding tax equivalent adjustment | $ | 21,438 | $ | 21,498 | $ | 20,995 | $ | 19,349 | $ | 18,660 | $ | 83,281 | $ | 57,159 | ||||||||
| Loan interest income1 | $ | 148,004 | $ | 150,048 | $ | 148,432 | $ | 135,341 | $ | 105,437 | $ | 581,825 | $ | 316,073 | ||||||||
| Tax equivalent adjustment on loans | (203 | ) | (177 | ) | (167 | ) | (173 | ) | (115 | ) | (720 | ) | (356 | ) | ||||||||
| Loan interest income excluding tax equivalent adjustment | $ | 147,801 | $ | 149,871 | $ | 148,265 | $ | 135,168 | $ | 105,322 | $ | 581,105 | $ | 315,717 | ||||||||
| Net Interest Income1 | $ | 111,035 | $ | 119,505 | $ | 127,153 | $ | 131,351 | $ | 119,858 | $ | 489,043 | $ | 366,660 | ||||||||
| Tax equivalent adjustment on securities | (13 | ) | (22 | ) | (23 | ) | (26 | ) | (34 | ) | (83 | ) | (142 | ) | ||||||||
| Tax equivalent adjustment on loans | (203 | ) | (177 | ) | (167 | ) | (173 | ) | (115 | ) | (720 | ) | (356 | ) | ||||||||
| Net interest income excluding tax equivalent adjustment | $ | 110,819 | $ | 119,306 | $ | 126,963 | $ | 131,152 | $ | 119,709 | $ | 488,240 | $ | 366,162 | ||||||||
| 1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost. | ||||||||||||||||||||||
FAQ
What was Seacoast Banking Corporation of Florida's (SBCF) net income in Q4 2023?
What were Seacoast Banking Corporation of Florida's (SBCF) adjusted net income in Q4 2023?
What strategic expense measures did Seacoast Banking Corporation of Florida (SBCF) execute?
What was the impact of market conditions on Seacoast Banking Corporation of Florida (SBCF)?
What is Seacoast Banking Corporation of Florida's (SBCF) plan for expense reduction in 2024?
