Seacoast Reports Second Quarter 2022 Results
Seacoast Banking Corporation of Florida (NASDAQ: SBCF) reported a second-quarter net income of $32.8 million, a 59% increase from the prior quarter and a 4% increase year-over-year. Adjusted net income was $36.3 million, growing 34% from Q1 2022. The company achieved a net interest margin of 3.38%, reflecting strong loan originations and growth in demand deposits. Seacoast's tangible common equity ratio stood at 9.74%, providing solid capital and liquidity. The company has expanded into new markets and continues to pursue strategic acquisitions, enhancing its competitive presence in Florida.
- Net income rose to $32.8 million, up 59% from Q1 2022.
- Adjusted net income increased to $36.3 million, a growth of 34% from the previous quarter.
- Record commercial loan originations of $461.9 million.
- Net interest margin improved to 3.38%, benefiting from higher yields.
- Total deposits increased 17% year-over-year to $9.2 billion.
- Tangible book value per share declined by $1.90 compared to December 31, 2021.
- Noninterest expense rose 23% year-over-year to $56.1 million.
Record Commercial Loan Originations, Strong Growth in Demand Deposits, and Significant Expansion in Net Interest Margin Highlight Q2 Results
Well-Positioned Balance Sheet with Strong Capital and Liquidity
STUART, Fla., July 28, 2022 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the second quarter of 2022 of
For the second quarter of 2022, return on average tangible assets was
Charles M. Shaffer, Seacoast's Chairman and CEO, said, “Our quarterly results demonstrate the continued success of our balanced growth strategy, with steady, disciplined organic growth and financially attractive and well-integrated acquisitions combining to deliver strong returns for our shareholders. The quarter was highlighted by a significant increase in our net interest margin, strong loan originations, and continued growth in demand deposits. Adjusted pre-tax pre-provision earnings1 increased
“I would like to thank the Seacoast team for their dedication and hard work, and I am very excited to continue our momentum as we build a statewide brand as Florida’s leading bank. As we enter the second half of 2022, we have already this year added new markets in Naples, Jacksonville, and Sarasota, and in the fourth quarter we will add Miami, Ocala, and Gainesville. This expansion into some of the best banking markets in the United States, in combination with a statewide highly competitive brand of banking, will generate disciplined growth and strong returns in the years to come,” Shaffer added.
Shaffer concluded, “We continue to operate the company with a solid balance sheet, fortified with a tangible common equity ratio of
Acquisitions Update
Seacoast’s balanced growth strategy, combining organic growth with value-creating acquisitions, continues to benefit shareholders and expand the franchise across Florida.
In the first quarter of 2022, Seacoast completed the acquisitions of Sabal Palm Bancorp, Inc. (“Sabal Palm”) in Sarasota, and Business Bank of Florida Corp. (“BBFC”) in Brevard County, which collectively added a combined
The pending acquisition of Apollo Bancshares, Inc. will add a premier, locally-focused franchise in the rapidly growing South Florida market. We expect this transaction to close and the system conversion to be complete by early October 2022. The addition of Drummond Banking Company will expand Seacoast’s footprint into the emerging Gainesville and Ocala markets with low-cost core deposits and diversified business lines. We expect this transaction to close in early October 2022, with the system conversion in the first quarter of 2023. Each acquisition provides the opportunity for Seacoast to leverage its proven integration capabilities to preserve and build on Apollo’s and Drummond’s strong customer-focused relationships. The two acquisitions are expected to add a combined
Financial Results
Income Statement
- Net income was
$32.8 million , or$0.53 per diluted share for the second quarter of 2022 compared to net income of$20.6 million , or$0.33 , for the prior quarter, and$31.4 million , or$0.56 , for the prior year quarter. For the six months ended June 30, 2022, net income was$53.3 million , or$0.86 per diluted share, compared to$65.1 million , or$1.17 per diluted share, for the six months ended June 30, 2021. Adjusted net income1 for the second quarter of 2022 was$36.3 million , or$0.59 per diluted share. This compares to$27.1 million , or$0.44 , for the prior quarter, and$33.3 million , or$0.59 per diluted share, for the prior year quarter. Excluded from adjusted net income are$3.0 million in merger-related expenses in the second quarter of 2022, compared to$6.7 million in the first quarter of 2022 and$0.5 million in the second quarter of 2021. For the six months ended June 30, 2022, adjusted net income1 was$63.4 million , or$1.03 per diluted share, compared to$68.7 million , or$1.23 per diluted share, for the six months ended June 30, 2021. - Net revenues were
$98.6 million in the second quarter of 2022, an increase of$6.7 million , or7% , compared to the prior quarter, and an increase of$17.5 million , or22% , compared to the prior year quarter. For the six months ended June 30, 2022 net revenues were$190.5 million , an increase of$25.1 million , or15% , compared to the six months ended June 30, 2021. Adjusted revenues1 were$98.9 million in the second quarter of 2022, an increase of$6.6 million , or7% , compared to the prior quarter, and an increase of$17.7 million , or22% , compared to the prior year quarter. For the six months ended June 30, 2022 adjusted revenues1 were$191.3 million , an increase of$25.7 million , or16% , compared to the six months ended June 30, 2021. - On an adjusted basis, pre-tax pre-provision earnings1 was
$46.4 million , an increase of11% compared to the first quarter of 2022 and an increase of23% compared to the second quarter of 2021. The increase from the prior quarter was the result of higher net interest income driven by expanding margin, increasing noninterest income, and a reduction in noninterest expense. - Net interest income totaled
$81.6 million in the second quarter of 2022, an increase of$5.1 million , or7% , from the first quarter of 2022, and an increase of$15.8 million , or24% , compared to the second quarter of 2021. For the six months ended June 30, 2022, net interest income was$158.2 million , an increase of$25.8 million , or19% compared to the six months ended June 30, 2021. - Net interest margin increased to
3.38% in the second quarter of 2022 compared to3.25% in the first quarter of 2022, the result of higher yields on securities and loans and a stable cost of deposits. Excluding the effect of PPP and accretion on acquired loans, net interest margin increased 19 basis points to3.24% in the second quarter of 2022 from3.05% in the first quarter of 2022. Securities yields increased 30 basis points to1.98% , reflecting the impact of the addition of higher yielding securities during the quarter. Non-PPP loan yields increased three basis points to4.27% . The effect on net interest margin of accretion of purchase discounts on acquired loans in the second quarter of 2022 was 12 basis points, a decrease of 3 basis points compared to the prior quarter. The effect on net interest margin of interest and fees on PPP loans was an increase of two basis points in the second quarter of 2022 compared to an increase of five basis points in the prior quarter. The cost of deposits remained only six basis points for the second quarter of 2022. The margin benefited from the Company’s asset sensitivity, disciplined growth across the balance sheet, and no increase in the cost of deposits from the prior quarter. - Noninterest income totaled
$17.0 million in the second quarter of 2022, an increase of$1.6 million , or10% , compared to the prior quarter, and an increase of$1.6 million , or11% , compared to the prior year quarter. For the six months ended June 30, 2022, noninterest income was$32.3 million , a decrease of$0.7 million , or2% , compared to the six months ended June 30, 2021. Results for the second quarter of 2022 included the following:- Service charges on deposits increased
$0.6 million to$3.4 million , reflecting growth in commercial deposit relationships and service charge fee increases. - Despite the impact of broad based declining equity market valuations, the wealth management group continues to win relationships, resulting in
$2.8 million in fee income for the quarter, an increase of$0.1 million from the prior quarter. - Mortgage banking fees were
$0.9 million , compared to$1.7 million in the prior quarter, reflecting the continued impact of rising rates and limited housing inventory on saleable loan production. - Gains on sale of SBA loans were
$0.5 million , an increase of$0.3 million compared to the prior quarter, reflecting higher production during the quarter. - Other income increased by
$0.9 million in the second quarter of 2022 to$3.8 million and included the benefit of higher loan-swap related income. - The Company recognized
$0.3 million in securities losses in the second quarter of 2022, compared to$0.5 million in the first quarter of 2022 and$0.1 million in the second quarter of 2021.
- Service charges on deposits increased
- The provision for credit losses was
$0.8 million in the second quarter of 2022, compared to$6.6 million in the prior quarter. The prior quarter included$5.1 million in provisioning for loans acquired in the Sabal Palm and BBFC transactions. - Noninterest expense was
$56.1 million in the second quarter of 2022, a decrease of$2.8 million , or5% , compared to the prior quarter, and an increase of$10.4 million , or23% , compared to the prior year quarter. Noninterest expense was$115.1 million for the six months ended June 30, 2022, compared to$91.9 million in the six months ended June 30, 2021. Changes from the first quarter of 2022 included the following:- Salaries and wages decreased
$0.2 million to$28.1 million in the second quarter of 2022. The second quarter of 2022 reflects higher compensation costs, with ongoing investments in commercial banking talent and production support roles, which were more than offset by a$2.4 million decline in merger-related expenses quarter over quarter. - Employee benefits declined by
$1.4 million to$4.2 million , reflecting seasonally higher payroll taxes and 401(k) contributions in the first quarter of 2022. - Marketing expense increased
$0.7 million to$1.9 million in the second quarter of 2022, the result of marketing campaigns primarily focused on our expansion markets. - Legal and professional fees declined by
$1.8 million to$2.9 million in the second quarter of 2022, reflecting lower merger-related expenses in the current quarter. - Other expenses increased by
$0.6 million , reflecting higher recruiting and production-related costs.
- Salaries and wages decreased
- Seacoast recorded
$8.9 million of income tax expense in the second quarter of 2022, compared to$5.8 million in the prior quarter and$8.8 million in the second quarter of 2021. During the second quarter of 2022, the Company received a$1.0 million refund of Florida corporate income tax paid in prior periods. The State of Florida reported that, for the second year in a row, corporate income tax collections significantly exceeded projections, triggering an automatic refund of excess funds. Tax benefits related to stock-based compensation totaled$0.4 million in the second quarter of 2022,$0.5 million in the first quarter of 2022, and$0.6 million in the second quarter of 2021. - The ratio of net adjusted noninterest expense1 to average tangible assets was
2.00% in the second quarter of 2022, compared to1.99% in the prior quarter and1.98% in the second quarter of 2021. - The efficiency ratio was
56.22% in the second quarter of 2022, compared to62.33% in the prior quarter and54.93% in the prior year quarter. The adjusted efficiency ratio1 was53.15% in the second quarter of 2022, compared to54.86% in the prior quarter and53.49% in the prior year quarter. The Company continues to remain keenly focused on disciplined expense control.
Balance Sheet
- At June 30, 2022, the Company had total assets of
$10.8 billion and total shareholders' equity of$1.3 billion . Book value per share was$21.65 on June 30, 2022, compared to$22.15 on March 31, 2022, and$21.33 on June 30, 2021. Tangible book value per share totaled$16.66 on June 30, 2022 compared to$17.12 on March 31, 2022 and$17.08 on June 30, 2021. A continued decline in the value of the available for sale securities portfolio driven by rising interest rates impacted tangible book value per share by$1.90 when compared to December 31, 2021. - Debt securities totaled
$2.6 billion on June 30, 2022, an increase of$142.0 million , or6% , compared to March 31, 2022. Purchases during the second quarter of 2022 totaled$300.8 million , consisting primarily of agency-issued securities at an average duration of 3.3 and average add on yield of3.31% . The Company continues to take a prudent and disciplined approach to reinvesting excess liquidity. - Loans totaled
$6.5 billion on June 30, 2022, an increase of$90.3 million , or1% , compared to March 31, 2022. Loans outstanding, excluding PPP, grew7% on an annualized basis. The Company continues to exercise a disciplined approach to loan growth, carefully underwriting loans to strict underwriting guidelines. - Loan originations were
$734.0 million in the second quarter of 2022, an increase of8% compared to$678.7 million in the first quarter of 2022.- Commercial originations were a record
$461.9 million during the second quarter of 2022, compared to$373.0 million in the first quarter of 2022, and$193.0 million in the second quarter of 2021. - Consumer originations in the second quarter of 2022 increased to
$126.5 million from$79.0 million in the first quarter of 2022 and from$63.7 million in the second quarter of 2021. The increase is primarily the result of consumer lending teams that joined in late 2021. - Residential loans originated for sale in the secondary market totaled
$42.7 million in the second quarter of 2022, compared to$51.2 million in the first quarter of 2022 and$120.1 million in the second quarter of 2021. Limited housing inventory and slowing refinance activity contributed to lower production. - Closed residential loans retained in the portfolio totaled
$103.0 million in the second quarter of 2022, compared to$175.5 million in the first quarter of 2022, and$118.1 million in the second quarter of 2021. The first quarter of 2022 and the second quarter of 2021 included the purchases of$111.3 million and$38.4 million , respectively, of high-quality wholesale residential home mortgage loan pools from sellers well known to Seacoast.
- Commercial originations were a record
- Pipelines (loans in underwriting and approval or approved and not yet closed) totaled
$620.0 million on June 30, 2022, a decrease of22% from March 31, 2022 and an increase of32% from June 30, 2021.- Commercial pipelines were
$476.7 million as of June 30, 2022, a decrease of23% from$619.5 million at March 31, 2022, and an increase of48% from$322.0 million at June 30, 2021. The Company continues to add experienced commercial bankers across Florida focused on generating disciplined growth in full relationships, including credit facilities, deposit relationships, and wealth opportunities. - Consumer pipelines were
$75.5 million as of June 30, 2022, an increase of23% from$61.6 million at March 31, 2022, and an increase of138% from$31.7 million at June 30, 2021. The increase is primarily the result of consumer lending teams that joined in late 2021. - Residential saleable pipelines were
$14.7 million as of June 30, 2022, compared to$25.7 million at March 31, 2022, and$60.6 million at June 30, 2021. Retained residential pipelines were$53.1 million as of June 30, 2022, compared to$88.0 million at March 31, 2022, and$54.1 million at June 30, 2021.
- Commercial pipelines were
- Total deposits were
$9.2 billion as of June 30, 2022, a decrease of$54.8 million , or1% , compared to March 31, 2022, and an increase of$1.4 billion , or17% , compared to June 30, 2021.- Transaction account balances increased
$86 million , or1% , quarter-over-quarter, and at June 30, 2022, total transaction account balances represent64% of overall deposit funding. This continued growth in commercial relationships reflects the benefit of adding experienced, well-seasoned commercial bankers across the state of Florida. - The overall cost of deposits remained at six basis points.
- As of June 30, 2022, deposits per banking center were
$158.4 million , compared to$163.4 million at March 31, 2022, and$163.3 million at June 30, 2021.
- Transaction account balances increased
Asset Quality
- Credit metrics remain strong with charge-offs, nonaccruals, and criticized assets at historically low levels.
- Nonperforming loans increased by
$0.2 million to$26.4 million at June 30, 2022. Nonperforming loans to total loans outstanding were0.40% at June 30, 2022,0.41% at March 31, 2022, and0.61% at June 30, 2021. - Due primarily to the sale during the quarter of a residential construction project held in other real estate owned since early 2020, nonperforming assets to total assets declined to
0.27% at June 30, 2022, compared to0.35% at March 31, 2022, and0.49% at June 30, 2021. - The ratio of allowance for credit losses to total loans was
1.39% at June 30, 2022,1.39% at March 31, 2022, and1.49% at June 30, 2021. Excluding PPP loans, the ratio of allowance for credit losses to total loans at June 30, 2022 was1.39% , compared to1.40% at March 31, 2022 and1.60% at June 30, 2021. - Net recoveries of
$0.1 million for the second quarter of 2022 compared to net charge-offs of$0.1 million in the first quarter of 2022 and$0.7 million in the second quarter of 2021. Net charge-offs for the four most recent quarters averaged0.04% . - Portfolio diversification, in terms of asset mix, industry, and loan type, has been a critical element of the Company's lending strategy. Exposure across industries and collateral types is broadly distributed. Seacoast's average commercial loan size is
$558 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
29% and192% of total bank-level risk-based capital, respectively, compared to22% and189% respectively, at March 31, 2022. On a consolidated basis, construction and land development and commercial real estate loans represent27% and176% , respectively, of total consolidated risk-based capital.
Capital and Liquidity
- The Company continues to operate with a fortress balance sheet, with a tier 1 capital ratio at June 30, 2022, of
16.8% compared to16.8% at March 31, 2022, and18.3% at June 30, 2021. The total capital ratio was17.7% and the tier 1 leverage ratio was11.6% at June 30, 2022. - Cash and cash equivalents at June 30, 2022 totaled
$901.4 million , a decrease of$321.1 million , or26% , from March 31, 2022, resulting from loan growth, investment in the securities portfolio, and deposit outflows, primarily attributed to seasonally higher tax payments by commercial customers. - Tangible common equity to tangible assets was
9.74% at June 30, 2022, compared to9.89% at March 31, 2022, and10.43% at June 30, 2021. Declines in the value of available for sale securities due to rising interest rates in the first half of 2022 negatively impacted equity year to year by$116.5 million .
- At June 30, 2022, the Company had available unsecured lines of credit of
$165.0 million and lines of credit under lendable collateral value of$2.2 billion . Additionally,$2.1 million of debt securities and$0.7 million of residential and commercial real estate loans are available as collateral for potential borrowings.
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.
| FINANCIAL HIGHLIGHTS | |||||||||||||||||||
| (Amounts in thousands except per share data) | (Unaudited) | ||||||||||||||||||
| Quarterly Trends | |||||||||||||||||||
| 2Q'22 | 1Q'22 | 4Q'21 | 3Q'21 | 2Q'21 | |||||||||||||||
| Selected Balance Sheet Data: | |||||||||||||||||||
| Total Assets | $ | 10,811,704 | $ | 10,904,817 | $ | 9,681,433 | $ | 9,893,498 | $ | 9,316,833 | |||||||||
| Gross Loans | 6,541,548 | 6,451,217 | 5,925,029 | 5,905,884 | 5,437,049 | ||||||||||||||
| Total Deposits | 9,188,953 | 9,243,768 | 8,067,589 | 8,334,172 | 7,836,436 | ||||||||||||||
| Performance Measures: | |||||||||||||||||||
| Net Income | $ | 32,755 | $ | 20,588 | $ | 36,330 | $ | 22,944 | $ | 31,410 | |||||||||
| Net Interest Margin | 3.38 | % | 3.25 | % | 3.16 | % | 3.22 | % | 3.23 | % | |||||||||
| Average Diluted Shares Outstanding | 61,923 | 61,704 | 59,016 | 57,645 | 55,901 | ||||||||||||||
| Diluted Earnings Per Share (EPS) | $ | 0.53 | $ | 0.33 | $ | 0.62 | $ | 0.40 | $ | 0.56 | |||||||||
| Return on (annualized): | |||||||||||||||||||
| Average Assets (ROA) | 1.21 | % | 0.79 | % | 1.43 | % | 0.93 | % | 1.40 | % | |||||||||
| Average Tangible Assets (ROTA)2 | 1.29 | 0.85 | 1.51 | 1.00 | 1.48 | ||||||||||||||
| Average Tangible Common Equity (ROTCE)2 | 13.01 | 8.02 | 14.29 | 9.56 | 13.88 | ||||||||||||||
| Tangible Common Equity to Tangible Assets2 | 9.74 | 9.89 | 11.09 | 10.62 | 10.43 | ||||||||||||||
| Tangible Book Value Per Share2 | $ | 16.66 | $ | 17.12 | $ | 17.84 | $ | 17.52 | $ | 17.08 | |||||||||
| Efficiency Ratio | 56.22 | % | 62.33 | % | 53.70 | % | 59.55 | % | 54.93 | % | |||||||||
| Adjusted Operating Measures1: | |||||||||||||||||||
| Adjusted Net Income | $ | 36,327 | $ | 27,056 | $ | 36,854 | $ | 29,350 | $ | 33,251 | |||||||||
| Adjusted Diluted EPS | 0.59 | 0.44 | 0.62 | 0.51 | 0.59 | ||||||||||||||
| Adjusted ROTA2 | 1.38 | % | 1.06 | % | 1.49 | % | 1.23 | % | 1.52 | % | |||||||||
| Adjusted ROTCE2 | 13.97 | 10.01 | 14.11 | 11.72 | 14.27 | ||||||||||||||
| Adjusted Efficiency Ratio | 53.15 | 54.86 | 53.43 | 51.50 | 53.49 | ||||||||||||||
| Net Adjusted Noninterest Expense as a Percent of Average Tangible Assets2 | 2.00 | 1.99 | 1.96 | 1.95 | 1.98 | ||||||||||||||
| Other Data: | |||||||||||||||||||
| Market capitalization3 | $ | 2,028,996 | $ | 2,144,586 | $ | 2,070,465 | $ | 1,972,784 | $ | 1,893,141 | |||||||||
| Full-time equivalent employees | 1,095 | 1,066 | 989 | 995 | 946 | ||||||||||||||
| Number of ATMs | 79 | 79 | 75 | 72 | 75 | ||||||||||||||
| Full-service banking offices | 58 | 58 | 54 | 52 | 48 | ||||||||||||||
| 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. | |||||||||||||||||||
Second Quarter 2022 Strategic Highlights
Capitalizing on Seacoast’s Commitment to Digital Transformation
- Consistent investments in recent years in client-facing technology and high-performing bankers continue to generate solid performance in new customer acquisition and organic balance sheet growth. As we seek to build the most competitive banking franchise in Florida, we are driving continued transformation across our technology capabilities.
- Early in 2022, we successfully launched a unified customer user experience by upgrading our digital platforms including mobile, consumer internet banking and business internet banking. These digital investments have dramatically improved our customer experience, reflected in a
20% reduction of inbound calls to our telephone support center. We expect to introduce additional digital features in the third and fourth quarters. - Use of online and mobile features including Zelle® have surpassed our estimates, with ten times the utilization of payment features compared to our previous platform. Over 15,000 online banking users have opted into our account aggregation service.
- During the second quarter, we completed the first phase of our enhanced digital account opening solution, which streamlined account opening for customers while positioning the bank to more effectively scale across the state.
Driving Sustainable Growth and Expanding our Footprint
- Seacoast’s balanced growth strategy includes organic growth and expansion initiatives across the state. Thus far in 2022, Seacoast has expanded the franchise into Naples, Sarasota, and Jacksonville. The combination of a strong Florida economy, the build-out of our commercial franchise across the state, and additions to our consumer and mortgage lending teams drove diversified loan production during the quarter.
- During the second quarter, the Company continued to strengthen its commercial banking franchise, adding five commercial bankers across the footprint. In addition, Tom Lambert, previously with Truist, joined Seacoast as Market President for the Tampa Bay region. Tom is a well-known leader in the Tampa Bay market, having spent the last several years leading middle market for heritage BB&T.
- The Company added six new treasury officers across the state during the second quarter, providing additional support and treasury management expertise further, supporting the Company’s middle market buildout.
Scaling and Evolving Our Culture
- For the third consecutive year, Seacoast has been recognized by the Human Rights Foundation, earning a perfect score for Workplace Equality in the 2022 Corporate Equality index. In addition, the Orlando Business Journal recognized Seacoast as a Best Place to Work for 2022. These honors highlight our commitment to employees’ well-being, as well as our numerous diversity and inclusion initiatives.
OTHER INFORMATION
Conference Call Information
Seacoast will host a conference call on July 29, 2022 at 10:00 a.m. (Eastern Time) to discuss the second quarter 2022 earnings results and business trends. Investors may call in (toll-free) by dialing (866) 374-5140 (passcode: 1306 5710#; 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 July 29, 2022, and can be accessed via a link at www.SeacoastBanking.com under the heading “Corporate Information,” using the passcode EV00135641.
Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast's website at www.SeacoastBanking.com. The link is located under the heading “Corporate Information.” Beginning late afternoon on July 29, 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
Additional Information
Seacoast has filed a registration statement on Form S-4 with the United States Securities and Exchange Commission (the "SEC") in connection with the proposed merger of Apollo Bancshares, Inc. and Apollo Bank with and into Seacoast and Seacoast National Bank, respectively. Seacoast has also filed a registration statement on Form S-4 with the SEC in connection with the proposed merger of Drummond Banking Company and Drummond Community Bank with and into Seacoast and Seacoast National Bank, respectively. The registration statements in connection with the mergers include a proxy statement of Apollo Bancshares, Inc., Apollo Bank and Drummond Banking Company, respectively, and a prospectus of Seacoast. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. WE URGE INVESTORS TO READ THE PROXY STATEMENTS/PROSPECTUSES AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE MERGERS OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENTS/PROSPECTUSES BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
Investors may obtain (when available) these documents free of charge at the SEC’s website (www.sec.gov). In addition, documents filed with the SEC by Seacoast will be available free of charge by contacting Investor Relations at (772) 288-6085.
Apollo Bancshares, Inc. and Apollo Bank, their directors, and executive officers and other members of management and employees may be considered participants in the solicitation of proxies in connection with the proposed mergers with and into Seacoast and Seacoast National Bank. Information regarding the participants in the proxy solicitation of Apollo Bancshares, Inc. and Apollo Bank and a description of its direct and indirect interests, by security holdings or otherwise, is contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC.
Drummond Banking Company and Drummond Community Bank, their directors, and executive officers and other members of management and employees may be considered participants in the solicitation of proxies in connection with the proposed mergers with and into Seacoast and Seacoast National Bank. Information regarding the participants in the proxy solicitation of Drummond Banking Company and a description of its direct and indirect interests, by security holdings or otherwise, is contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC.
Cautionary Notice Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, cost savings, enhanced revenues, economic and seasonal conditions in the Company’s markets, and improvements to reported earnings that may be realized from cost controls, tax law changes, new initiatives and for integration of banks that the Company has acquired, or expects to acquire, including Apollo Bancshares, Inc. and Drummond Banking Company, as well as statements with respect to Seacoast's objectives, strategic plans, expectations and intentions and other statements that are not historical facts, any of which may be impacted by the COVID-19 pandemic and any variants thereof and related effects on the U.S. economy. Actual results may differ from those set forth in the forward-looking statements.
Forward-looking statements include statements with respect to the Company’s beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates and intentions about future performance and involve known and unknown risks, uncertainties and other factors, which may be beyond the Company’s control, and which may cause the actual results, performance or achievements of Seacoast to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. You should not expect the Company to update any forward-looking statements.
All statements other than statements of historical fact could be forward-looking statements. You can identify these forward-looking statements through the use of words such as "may", "will", "anticipate", "assume", "should", "support", "indicate", "would", "believe", "contemplate", "expect", "estimate", "continue", "further", "plan", "point to", "project", "could", "intend", "target" or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the effects of future economic and market conditions, including seasonality; the adverse impact of COVID-19 (economic and otherwise) on the Company and its customers, counterparties, employees, and third-party service providers, and the adverse impacts to our business, financial position, results of operations and prospects; government or regulatory responses to the COVID-19 pandemic; governmental monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve, as well as legislative, tax and regulatory changes, including those that impact the money supply and inflation; changes in accounting policies, rules and practices, including the impact of the adoption of the current expected credit losses (“CECL”) methodology; the risks of changes in interest rates on the level and composition of deposits, loan demand, liquidity and the values of loan collateral, securities, and interest rate sensitive assets and liabilities; interest rate risks, sensitivities and the shape of the yield curve; uncertainty related to the impact of LIBOR calculations on securities, loans and debt; changes in borrower credit risks and payment behaviors including as a result of the financial impact of COVID-19; changes in retail distribution strategies, customer preferences and behavior (including as a result of economic factors); changes in the availability and cost of credit and capital in the financial markets; changes in the prices, values and sales volumes of residential and commercial real estate; our ability to comply with any regulatory requirements; the effects of problems encountered by other financial institutions that adversely affect Seacoast or the banking industry; the Company’s concentration in commercial real estate loans and in real estate collateral in Florida; inaccuracies or other failures from the use of models, including the failure of assumptions and estimates, as well as differences in, and changes to, economic, market and credit conditions; the impact on the valuation of Seacoast’s investments due to market volatility or counterparty payment risk; statutory and regulatory dividend restrictions; increases in regulatory capital requirements for banking organizations generally; the risks of mergers, acquisitions and divestitures, including Seacoast’s ability to continue to identify acquisition targets, successfully acquire and integrate desirable financial institutions and realize expected revenues and revenue synergies; changes in technology or products that may be more difficult, costly, or less effective than anticipated; the Company’s ability to identify and address increased cybersecurity risks, including as a result of employees working remotely; inability of Seacoast’s risk management framework to manage risks associated with the Company’s business; dependence on key suppliers or vendors to obtain equipment or services for the business on acceptable terms, including the impact of supply chain disruptions; reduction in or the termination of Seacoast’s ability to use the online- or mobile-based platform that is critical to the Company’s business growth strategy; the effects of war or other conflicts, including the impacts related to or resulting from Russia’s military action in Ukraine, acts of terrorism, natural disasters, health emergencies, epidemics or pandemics, or other catastrophic events that may affect general economic conditions; unexpected outcomes of and the costs associated with, existing or new litigation involving the Company, including as a result of the Company’s participation in the Paycheck Protection Program (“PPP”); Seacoast’s ability to maintain adequate internal controls over financial reporting; potential claims, damages, penalties, fines and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions; the risks that deferred tax assets could be reduced if estimates of future taxable income from the Company’s operations and tax planning strategies are less than currently estimated and sales of capital stock could trigger a reduction in the amount of net operating loss carryforwards that the Company may be able to utilize for income tax purposes; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, non-bank financial technology providers, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in the Company’s market areas and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the Internet; the failure of assumptions underlying the establishment of reserves for possible credit losses.
The risks relating to the proposed Apollo Bancshares, Inc. and Drummond Banking Company mergers include, without limitation, failure to obtain the approval of shareholders of Apollo Bancshares, Inc., Apollo Bank and Drummond Banking Company in connection with the mergers; the timing to consummate the proposed mergers; the risk that a condition to the closing of the proposed mergers may not be satisfied; the risk that a regulatory approval that may be required for the proposed mergers is not obtained or is obtained subject to conditions that are not anticipated; the parties' ability to achieve the synergies and value creation contemplated by the proposed mergers; the parties' ability to promptly and effectively integrate the businesses of Seacoast, Apollo Bancshares, Inc. and Drummond Banking Company, including unexpected transaction costs, the costs of integrating operations, severance, professional fees and other expenses; the diversion of management time on issues related to the mergers; the failure to consummate or any delay in consummating the mergers for other reasons; changes in laws or regulations; the risks of customer and employee loss and business disruption, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures and solicitations of customers and employees by competitors; and the difficulties and risks inherent with entering new markets.
All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in the Company’s annual report on Form 10-K for the year ended December 31, 2021 and quarterly report on Form 10-Q for the quarter ended March 31, 2022 under "Special Cautionary Notice Regarding Forward-Looking Statements" and "Risk Factors", and otherwise in the Company’s SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at www.sec.gov.
| FINANCIAL HIGHLIGHTS | (Unaudited) | ||||||||||||||||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||||||||||||||
| Quarterly Trends | Six Months Ended | ||||||||||||||||||||||||||
| (Amounts in thousands, except ratios and per share data) | 2Q'22 | 1Q'22 | 4Q'21 | 3Q'21 | 2Q'21 | 2Q'22 | 2Q'21 | ||||||||||||||||||||
| Summary of Earnings | |||||||||||||||||||||||||||
| Net income | $ | 32,755 | $ | 20,588 | $ | 36,330 | $ | 22,944 | $ | 31,410 | $ | 53,343 | $ | 65,129 | |||||||||||||
| Adjusted net income1 | 36,327 | 27,056 | 36,854 | 29,350 | 33,251 | 63,383 | 68,748 | ||||||||||||||||||||
| Net interest income2 | 81,764 | 76,639 | 72,412 | 71,455 | 65,933 | 158,403 | 132,674 | ||||||||||||||||||||
| Net interest margin2,3 | 3.38 | % | 3.25 | % | 3.16 | % | 3.22 | % | 3.23 | % | 3.32 | % | 3.37 | % | |||||||||||||
| Performance Ratios | |||||||||||||||||||||||||||
| Return on average assets-GAAP basis3 | 1.21 | % | 0.79 | % | 1.43 | % | 0.93 | % | 1.40 | % | 1.00 | % | 1.50 | % | |||||||||||||
| Return on average tangible assets-GAAP basis3,4 | 1.29 | 0.85 | 1.51 | 1.00 | 1.48 | 1.07 | 1.58 | ||||||||||||||||||||
| Adjusted return on average tangible assets1,3,4 | 1.38 | 1.06 | 1.49 | 1.23 | 1.52 | 1.23 | 1.63 | ||||||||||||||||||||
| Net adjusted noninterest expense to average tangible assets1,3,4 | 2.00 | 1.99 | 1.96 | 1.95 | 1.98 | 2.00 | 2.07 | ||||||||||||||||||||
| Return on average shareholders' equity-GAAP basis3 | 9.73 | 5.96 | 11.06 | 7.29 | 10.76 | 7.82 | 11.39 | ||||||||||||||||||||
| Return on average tangible common equity-GAAP basis3,4 | 13.01 | 8.02 | 14.29 | 9.56 | 13.88 | 10.46 | 14.73 | ||||||||||||||||||||
| Adjusted return on average tangible common equity1,3,4 | 13.97 | 10.01 | 14.11 | 11.72 | 14.27 | 11.95 | 15.12 | ||||||||||||||||||||
| Efficiency ratio5 | 56.22 | 62.33 | 53.70 | 59.55 | 54.93 | 59.17 | 54.05 | ||||||||||||||||||||
| Adjusted efficiency ratio1 | 53.15 | 54.86 | 53.43 | 51.50 | 53.49 | 53.97 | 52.72 | ||||||||||||||||||||
| Noninterest income to total revenue (excluding securities gains/losses) | 17.45 | 17.14 | 20.89 | 21.09 | 18.94 | 17.30 | 20.03 | ||||||||||||||||||||
| Tangible common equity to tangible assets4 | 9.74 | 9.89 | 11.09 | 10.62 | 10.43 | 9.74 | 10.43 | ||||||||||||||||||||
| Average loan-to-deposit ratio | 70.60 | 71.25 | 70.29 | 69.97 | 74.13 | 70.92 | 77.62 | ||||||||||||||||||||
| End of period loan-to-deposit ratio | 71.34 | 70.01 | 73.84 | 71.46 | 69.93 | 71.34 | 69.93 | ||||||||||||||||||||
| Per Share Data | |||||||||||||||||||||||||||
| Net income diluted-GAAP basis | $ | 0.53 | $ | 0.33 | $ | 0.62 | $ | 0.40 | $ | 0.56 | $ | 0.86 | $ | 1.17 | |||||||||||||
| Net income basic-GAAP basis | 0.53 | 0.34 | 0.62 | 0.40 | 0.57 | 0.87 | 1.18 | ||||||||||||||||||||
| Adjusted earnings1 | 0.59 | 0.44 | 0.62 | 0.51 | 0.59 | 1.03 | 1.23 | ||||||||||||||||||||
| Book value per share common | 21.65 | 22.15 | 22.40 | 22.12 | 21.33 | 21.65 | 21.33 | ||||||||||||||||||||
| Tangible book value per share | 16.66 | 17.12 | 17.84 | 17.52 | 17.08 | 16.66 | 17.08 | ||||||||||||||||||||
| Cash dividends declared | 0.17 | 0.13 | 0.13 | 0.13 | 0.13 | 0.30 | 0.13 | ||||||||||||||||||||
| 1Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP. | |||||||||||||||||||||||||||
| 2Calculated on a fully taxable equivalent basis using amortized cost. | |||||||||||||||||||||||||||
| 3These ratios are stated on an annualized basis and are not necessarily indicative of future periods. | |||||||||||||||||||||||||||
| 4The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets. | |||||||||||||||||||||||||||
| 5Defined as noninterest expense less amortization of intangibles and gains, losses, and expenses on foreclosed properties divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains and losses). | |||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | (Unaudited) | ||||||||||||||||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||||||||||||||
| Quarterly Trends | Six Months Ended | ||||||||||||||||||||||||||
| (Amounts in thousands, except per share data) | 2Q'22 | 1Q'22 | 4Q'21 | 3Q'21 | 2Q'21 | 2Q'22 | 2Q'21 | ||||||||||||||||||||
| Interest on securities: | |||||||||||||||||||||||||||
| Taxable | $ | 12,387 | $ | 10,041 | $ | 8,574 | $ | 7,775 | $ | 6,559 | $ | 22,428 | $ | 12,857 | |||||||||||||
| Nontaxable | 138 | 140 | 139 | 143 | 147 | 278 | 295 | ||||||||||||||||||||
| Fees on PPP loans | 676 | 1,373 | 3,011 | 5,218 | 3,877 | 2,049 | 9,267 | ||||||||||||||||||||
| Interest on PPP loans | 65 | 150 | 341 | 699 | 1,251 | 215 | 2,747 | ||||||||||||||||||||
| Interest and fees on loans - excluding PPP loans | 68,566 | 65,595 | 61,049 | 58,507 | 55,220 | 134,161 | 110,632 | ||||||||||||||||||||
| Interest on federal funds sold and other investments | 1,917 | 933 | 828 | 867 | 709 | 2,850 | 1,295 | ||||||||||||||||||||
| Total Interest Income | 83,749 | 78,232 | 73,942 | 73,209 | 67,763 | 161,981 | 137,093 | ||||||||||||||||||||
| Interest on deposits | 994 | 767 | 711 | 849 | 980 | 1,761 | 2,045 | ||||||||||||||||||||
| Interest on time certificates | 436 | 468 | 494 | 583 | 524 | 904 | 1,711 | ||||||||||||||||||||
| Interest on borrowed money | 672 | 475 | 448 | 453 | 457 | 1,147 | 925 | ||||||||||||||||||||
| Total Interest Expense | 2,102 | 1,710 | 1,653 | 1,885 | 1,961 | 3,812 | 4,681 | ||||||||||||||||||||
| Net Interest Income | 81,647 | 76,522 | 72,289 | 71,324 | 65,802 | 158,169 | 132,412 | ||||||||||||||||||||
| Provision for credit losses | 822 | 6,556 | (3,942 | ) | 5,091 | (4,855 | ) | 7,378 | (10,570 | ) | |||||||||||||||||
| Net Interest Income After Provision for Credit Losses | 80,825 | 69,966 | 76,231 | 66,233 | 70,657 | 150,791 | 142,982 | ||||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||||
| Service charges on deposit accounts | 3,408 | 2,801 | 2,606 | 2,495 | 2,338 | 6,209 | 4,676 | ||||||||||||||||||||
| Interchange income | 4,255 | 4,128 | 4,135 | 4,131 | 4,145 | 8,383 | 7,965 | ||||||||||||||||||||
| Wealth management income | 2,774 | 2,659 | 2,356 | 2,562 | 2,387 | 5,433 | 4,710 | ||||||||||||||||||||
| Mortgage banking fees | 932 | 1,686 | 2,030 | 2,550 | 2,977 | 2,618 | 7,202 | ||||||||||||||||||||
| Marine finance fees | 312 | 191 | 147 | 152 | 177 | 503 | 366 | ||||||||||||||||||||
| SBA gains | 473 | 156 | 200 | 812 | 232 | 629 | 519 | ||||||||||||||||||||
| BOLI income | 1,349 | 1,334 | 1,295 | 1,128 | 872 | 2,683 | 1,731 | ||||||||||||||||||||
| Other | 3,761 | 2,870 | 6,316 | 5,228 | 2,249 | 6,631 | 5,993 | ||||||||||||||||||||
| 17,264 | 15,825 | 19,085 | 19,058 | 15,377 | 33,089 | 33,162 | |||||||||||||||||||||
| Securities losses, net | (300 | ) | (452 | ) | (379 | ) | (30 | ) | (55 | ) | (752 | ) | (169 | ) | |||||||||||||
| Total Noninterest Income | 16,964 | 15,373 | 18,706 | 19,028 | 15,322 | 32,337 | 32,993 | ||||||||||||||||||||
| Noninterest expenses: | |||||||||||||||||||||||||||
| Salaries and wages | 28,056 | 28,219 | 25,005 | 27,919 | 22,966 | 56,275 | 44,359 | ||||||||||||||||||||
| Employee benefits | 4,151 | 5,501 | 4,763 | 4,177 | 3,953 | 9,652 | 8,933 | ||||||||||||||||||||
| Outsourced data processing costs | 6,043 | 6,156 | 5,165 | 5,610 | 4,676 | 12,199 | 9,144 | ||||||||||||||||||||
| Telephone / data lines | 908 | 733 | 790 | 810 | 838 | 1,641 | 1,623 | ||||||||||||||||||||
| Occupancy | 4,050 | 3,986 | 3,500 | 3,541 | 3,310 | 8,036 | 7,099 | ||||||||||||||||||||
| Furniture and equipment | 1,588 | 1,426 | 1,403 | 1,567 | 1,166 | 3,014 | 2,420 | ||||||||||||||||||||
| Marketing | 1,882 | 1,171 | 1,060 | 1,353 | 1,002 | 3,053 | 2,170 | ||||||||||||||||||||
| Legal and professional fees | 2,946 | 4,789 | 2,461 | 4,151 | 2,182 | 7,735 | 4,764 | ||||||||||||||||||||
| FDIC assessments | 699 | 789 | 713 | 651 | 515 | 1,488 | 1,041 | ||||||||||||||||||||
| Amortization of intangibles | 1,446 | 1,446 | 1,304 | 1,306 | 1,212 | 2,892 | 2,423 | ||||||||||||||||||||
| Foreclosed property expense and net (gain) loss on sale | (968 | ) | (164 | ) | (175 | ) | 66 | (90 | ) | (1,132 | ) | (155 | ) | ||||||||||||||
| Provision for credit losses on unfunded commitments | — | 142 | — | 133 | — | 142 | — | ||||||||||||||||||||
| Other | 5,347 | 4,723 | 4,274 | 3,984 | 4,054 | 10,070 | 8,083 | ||||||||||||||||||||
| Total Noninterest Expense | 56,148 | 58,917 | 50,263 | 55,268 | 45,784 | 115,065 | 91,904 | ||||||||||||||||||||
| Income Before Income Taxes | 41,641 | 26,422 | 44,674 | 29,993 | 40,195 | 68,063 | 84,071 | ||||||||||||||||||||
| Income taxes | 8,886 | 5,834 | 8,344 | 7,049 | 8,785 | 14,720 | 18,942 | ||||||||||||||||||||
| Net Income | $ | 32,755 | $ | 20,588 | $ | 36,330 | $ | 22,944 | $ | 31,410 | $ | 53,343 | $ | 65,129 | |||||||||||||
| Per share of common stock: | |||||||||||||||||||||||||||
| Net income diluted | $ | 0.53 | $ | 0.33 | $ | 0.62 | $ | 0.40 | $ | 0.56 | $ | 0.86 | $ | 1.17 | |||||||||||||
| Net income basic | 0.53 | 0.34 | 0.62 | 0.40 | 0.57 | 0.87 | 1.18 | ||||||||||||||||||||
| Cash dividends declared | 0.17 | 0.13 | 0.13 | 0.13 | 0.13 | 0.30 | 0.13 | ||||||||||||||||||||
| Average diluted shares outstanding | 61,923 | 61,704 | 59,016 | 57,645 | 55,901 | 61,818 | 55,827 | ||||||||||||||||||||
| Average basic shares outstanding | 61,409 | 61,127 | 58,462 | 57,148 | 55,421 | 61,269 | 55,347 | ||||||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | (Unaudited) | ||||||||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| (Amounts in thousands) | 2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||||||
| Assets | |||||||||||||||||||
| Cash and due from banks | $ | 363,343 | $ | 351,128 | $ | 238,750 | $ | 199,460 | $ | 97,468 | |||||||||
| Interest bearing deposits with other banks | 538,025 | 871,387 | 498,979 | 1,028,235 | 1,351,377 | ||||||||||||||
| Total Cash and Cash Equivalents | 901,368 | 1,222,515 | 737,729 | 1,227,695 | 1,448,845 | ||||||||||||||
| Time deposits with other banks | 4,730 | 5,975 | — | 750 | 750 | ||||||||||||||
| Debt Securities: | |||||||||||||||||||
| Available for sale (at fair value) | 1,800,791 | 1,706,619 | 1,644,319 | 1,546,155 | 1,322,776 | ||||||||||||||
| Held to maturity (at amortized cost) | 794,785 | 747,004 | 638,640 | 526,502 | 493,467 | ||||||||||||||
| Total Debt Securities | 2,595,576 | 2,453,623 | 2,282,959 | 2,072,657 | 1,816,243 | ||||||||||||||
| Loans held for sale | 14,205 | 20,615 | 31,791 | 49,597 | 42,793 | ||||||||||||||
| Loans | 6,541,548 | 6,451,217 | 5,925,029 | 5,905,884 | 5,437,049 | ||||||||||||||
| Less: Allowance for credit losses | (90,769 | ) | (89,838 | ) | (83,315 | ) | (87,823 | ) | (81,127 | ) | |||||||||
| Net Loans | 6,450,779 | 6,361,379 | 5,841,714 | 5,818,061 | 5,355,922 | ||||||||||||||
| Bank premises and equipment, net | 74,784 | 74,617 | 72,404 | 71,250 | 69,392 | ||||||||||||||
| Other real estate owned | 2,419 | 11,567 | 13,618 | 13,628 | 12,804 | ||||||||||||||
| Goodwill | 286,606 | 286,606 | 252,154 | 252,154 | 221,176 | ||||||||||||||
| Other intangible assets, net | 20,062 | 21,549 | 14,845 | 16,153 | 14,106 | ||||||||||||||
| Bank owned life insurance | 207,724 | 206,375 | 205,041 | 193,747 | 158,506 | ||||||||||||||
| Net deferred tax assets | 60,080 | 47,222 | 27,321 | 24,187 | 21,839 | ||||||||||||||
| Other assets | 193,371 | 192,774 | 201,857 | 153,619 | 154,457 | ||||||||||||||
| Total Assets | $ | 10,811,704 | $ | 10,904,817 | $ | 9,681,433 | $ | 9,893,498 | $ | 9,316,833 | |||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||
| Liabilities | |||||||||||||||||||
| Deposits | |||||||||||||||||||
| Noninterest demand | $ | 3,593,201 | $ | 3,522,700 | $ | 3,075,534 | $ | 3,086,466 | $ | 2,952,160 | |||||||||
| Interest-bearing demand | 2,269,148 | 2,253,562 | 1,890,212 | 1,845,165 | 1,763,884 | ||||||||||||||
| Savings | 946,738 | 937,839 | 895,019 | 834,309 | 811,516 | ||||||||||||||
| Money market | 1,911,847 | 1,999,027 | 1,651,881 | 1,951,639 | 1,807,190 | ||||||||||||||
| Other time certificates | 350,571 | 397,491 | 404,601 | 437,973 | 335,370 | ||||||||||||||
| Brokered time certificates | — | — | — | 20,000 | 20,000 | ||||||||||||||
| Time certificates of more than | 117,448 | 133,149 | 150,342 | 158,620 | 146,316 | ||||||||||||||
| Total Deposits | 9,188,953 | 9,243,768 | 8,067,589 | 8,334,172 | 7,836,436 | ||||||||||||||
| Securities sold under agreements to repurchase | 110,578 | 120,922 | 121,565 | 105,548 | 119,973 | ||||||||||||||
| Subordinated debt | 71,786 | 71,716 | 71,646 | 71,576 | 71,506 | ||||||||||||||
| Other liabilities | 110,812 | 112,126 | 109,897 | 91,682 | 106,571 | ||||||||||||||
| Total Liabilities | 9,482,129 | 9,548,532 | 8,370,697 | 8,602,978 | 8,134,486 | ||||||||||||||
| Shareholders' Equity | |||||||||||||||||||
| Common stock | 6,141 | 6,124 | 5,850 | 5,835 | 5,544 | ||||||||||||||
| Additional paid in capital | 1,065,167 | 1,062,462 | 963,851 | 959,644 | 862,598 | ||||||||||||||
| Retained earnings | 393,431 | 371,192 | 358,598 | 329,918 | 314,584 | ||||||||||||||
| Treasury stock | (11,632 | ) | (10,459 | ) | (10,569 | ) | (10,146 | ) | (10,180 | ) | |||||||||
| 1,453,107 | 1,429,319 | 1,317,730 | 1,285,251 | 1,172,546 | |||||||||||||||
| Accumulated other comprehensive (loss) income, net | (123,532 | ) | (73,034 | ) | (6,994 | ) | 5,269 | 9,801 | |||||||||||
| Total Shareholders' Equity | 1,329,575 | 1,356,285 | 1,310,736 | 1,290,520 | 1,182,347 | ||||||||||||||
| Total Liabilities & Shareholders' Equity | $ | 10,811,704 | $ | 10,904,817 | $ | 9,681,433 | $ | 9,893,498 | $ | 9,316,833 | |||||||||
| Common shares outstanding | 61,410 | 61,239 | 58,504 | 58,349 | 55,436 | ||||||||||||||
| CONSOLIDATED QUARTERLY FINANCIAL DATA | (Unaudited) | ||||||||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||||||
| (Amounts in thousands) | 2Q'22 | 1Q'22 | 4Q'21 | 3Q'21 | 2Q'21 | ||||||||||||||
| Credit Analysis | |||||||||||||||||||
| Net (recoveries) charge-offs - non-acquired loans | $ | (75 | ) | $ | 72 | $ | 541 | $ | 198 | $ | 214 | ||||||||
| Net (recoveries) charge-offs - acquired loans | (49 | ) | 7 | 29 | 1,234 | 441 | |||||||||||||
| Total Net (Recoveries) Charge-offs | (124 | ) | 79 | 570 | 1,432 | 655 | |||||||||||||
| Net (recoveries) charge-offs to average loans - non-acquired loans | — | % | — | % | 0.04 | % | 0.01 | % | 0.02 | % | |||||||||
| Net (recoveries) charge-offs to average loans - acquired loans | — | — | — | 0.09 | 0.03 | ||||||||||||||
| Total Net (Recoveries) Charge-offs to Average Loans | — | — | 0.04 | 0.10 | 0.05 | ||||||||||||||
| Allowance for credit losses - non-acquired loans | $ | 70,215 | $ | 67,261 | $ | 64,710 | $ | 64,740 | $ | 64,525 | |||||||||
| Allowance for credit losses - acquired loans | 20,554 | 22,577 | 18,605 | 23,083 | 16,602 | ||||||||||||||
| Total Allowance for Credit Losses | $ | 90,769 | $ | 89,838 | $ | 83,315 | $ | 87,823 | $ | 81,127 | |||||||||
| Non-acquired loans at end of period | $ | 5,389,405 | $ | 5,169,973 | $ | 4,860,171 | $ | 4,608,801 | $ | 4,290,622 | |||||||||
| Acquired loans at end of period | 1,134,940 | 1,241,988 | 973,751 | 1,106,481 | 782,315 | ||||||||||||||
| Paycheck Protection Program loans at end of period | 17,203 | 39,256 | 91,107 | 190,602 | 364,112 | ||||||||||||||
| Total Loans | $ | 6,541,548 | $ | 6,451,217 | $ | 5,925,029 | $ | 5,905,884 | $ | 5,437,049 | |||||||||
| Non-acquired loans allowance for credit losses to non-acquired loans at end of period | 1.30 | % | 1.30 | % | 1.33 | % | 1.40 | % | 1.50 | % | |||||||||
| Total allowance for credit losses to total loans at end of period | 1.39 | 1.39 | 1.41 | 1.49 | 1.49 | ||||||||||||||
| Total allowance for credit losses to total loans, excluding PPP loans | 1.39 | 1.40 | 1.43 | 1.54 | 1.60 | ||||||||||||||
| Purchase discount on acquired loans at end of period | 1.84 | 1.89 | 2.27 | 2.27 | 2.98 | ||||||||||||||
| End of Period | |||||||||||||||||||
| Nonperforming loans | $ | 26,442 | $ | 26,209 | $ | 30,598 | $ | 32,612 | $ | 32,920 | |||||||||
| Other real estate owned | 109 | 9,256 | 12,223 | 11,843 | 11,019 | ||||||||||||||
| Properties previously used in bank operations included in other real estate owned | 2,310 | 2,310 | 1,395 | 1,785 | 1,785 | ||||||||||||||
| Total Nonperforming Assets | $ | 28,861 | $ | 37,775 | $ | 44,216 | $ | 46,240 | $ | 45,724 | |||||||||
| Accruing troubled debt restructures (TDRs) | $ | 4,022 | $ | 4,454 | $ | 3,917 | $ | 4,047 | $ | 4,037 | |||||||||
| Nonperforming Loans to Loans at End of Period | 0.40 | % | 0.41 | % | 0.52 | % | 0.55 | % | 0.61 | % | |||||||||
| Nonperforming Assets to Total Assets at End of Period | 0.27 | 0.35 | 0.46 | 0.47 | 0.49 | ||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| Loans | 2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||||||
| Construction and land development | $ | 350,025 | $ | 259,421 | $ | 230,824 | $ | 227,459 | $ | 234,347 | |||||||||
| Commercial real estate - owner occupied | 1,254,343 | 1,284,515 | 1,197,774 | 1,201,336 | 1,127,640 | ||||||||||||||
| Commercial real estate - non-owner occupied | 1,972,540 | 1,966,150 | 1,736,439 | 1,673,587 | 1,412,439 | ||||||||||||||
| Residential real estate | 1,647,465 | 1,599,645 | 1,425,354 | 1,467,329 | 1,226,536 | ||||||||||||||
| Commercial and financial | 1,124,771 | 1,132,506 | 1,069,356 | 982,552 | 900,206 | ||||||||||||||
| Consumer | 175,201 | 169,724 | 174,175 | 163,019 | 171,769 | ||||||||||||||
| Paycheck Protection Program | 17,203 | 39,256 | 91,107 | 190,602 | 364,112 | ||||||||||||||
| Total Loans | $ | 6,541,548 | $ | 6,451,217 | $ | 5,925,029 | $ | 5,905,884 | $ | 5,437,049 | |||||||||
| AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1 | (Unaudited) | ||||||||||||||||||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||||||||||||||||
| 2Q'22 | 1Q'22 | 2Q'21 | |||||||||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | Average | Yield/ | ||||||||||||||||||||||||
| (Amounts in thousands) | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Earning assets: | |||||||||||||||||||||||||||||
| Securities: | |||||||||||||||||||||||||||||
| Taxable | $ | 2,517,879 | $ | 12,387 | 1.97 | % | $ | 2,406,399 | $ | 10,041 | 1.67 | % | $ | 1,629,410 | $ | 6,559 | 1.61 | % | |||||||||||
| Nontaxable | 22,443 | 175 | 3.12 | 24,042 | 177 | 2.94 | 25,581 | 186 | 2.90 | ||||||||||||||||||||
| Total Securities | 2,540,322 | 12,562 | 1.98 | 2,430,441 | 10,218 | 1.68 | 1,654,991 | 6,745 | 1.63 | ||||||||||||||||||||
| Federal funds sold | 644,144 | 1,281 | 0.80 | 738,588 | 350 | 0.19 | 816,455 | 226 | 0.11 | ||||||||||||||||||||
| Other investments | 46,257 | 636 | 5.51 | 44,999 | 583 | 5.25 | 108,868 | 483 | 1.78 | ||||||||||||||||||||
| Loans excluding PPP loans | 6,454,444 | 68,647 | 4.27 | 6,276,964 | 65,675 | 4.24 | 5,092,897 | 55,313 | 4.36 | ||||||||||||||||||||
| PPP loans | 26,322 | 741 | 11.29 | 61,923 | 1,523 | 9.98 | 505,339 | 5,127 | 4.07 | ||||||||||||||||||||
| Total Loans | 6,480,766 | 69,388 | 4.29 | 6,338,887 | 67,198 | 4.30 | 5,598,236 | 60,440 | 4.33 | ||||||||||||||||||||
| Total Earning Assets | 9,711,489 | 83,867 | 3.46 | 9,552,915 | 78,349 | 3.33 | 8,178,550 | 67,894 | 3.33 | ||||||||||||||||||||
| Allowance for credit losses | (90,242 | ) | (87,467 | ) | (86,042 | ) | |||||||||||||||||||||||
| Cash and due from banks | 389,695 | 365,835 | 327,171 | ||||||||||||||||||||||||||
| Premises and equipment | 74,614 | 75,876 | 70,033 | ||||||||||||||||||||||||||
| Intangible assets | 307,411 | 304,321 | 235,964 | ||||||||||||||||||||||||||
| Bank owned life insurance | 206,839 | 205,500 | 133,484 | ||||||||||||||||||||||||||
| Other assets | 240,712 | 211,536 | 166,686 | ||||||||||||||||||||||||||
| Total Assets | $ | 10,840,518 | $ | 10,628,516 | $ | 9,025,846 | |||||||||||||||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||
| Interest-bearing demand | $ | 2,262,408 | $ | 293 | 0.05 | % | $ | 2,097,383 | $ | 190 | 0.04 | % | $ | 1,692,178 | $ | 235 | 0.06 | % | |||||||||||
| Savings | 962,264 | 64 | 0.03 | 925,348 | 65 | 0.03 | 790,734 | 118 | 0.06 | ||||||||||||||||||||
| Money market | 1,938,421 | 637 | 0.13 | 1,976,660 | 512 | 0.11 | 1,736,481 | 627 | 0.14 | ||||||||||||||||||||
| Time deposits | 496,186 | 436 | 0.35 | 560,681 | 468 | 0.34 | 533,350 | 524 | 0.39 | ||||||||||||||||||||
| Securities sold under agreements to repurchase | 120,437 | 94 | 0.31 | 118,146 | 39 | 0.13 | 115,512 | 35 | 0.12 | ||||||||||||||||||||
| Other borrowings | 71,740 | 579 | 3.24 | 71,670 | 436 | 2.47 | 71,460 | 422 | 2.37 | ||||||||||||||||||||
| Total Interest-Bearing Liabilities | 5,851,456 | 2,103 | 0.14 | 5,749,888 | 1,710 | 0.12 | 4,939,715 | 1,961 | 0.16 | ||||||||||||||||||||
| Noninterest demand | 3,520,700 | 3,336,121 | 2,799,643 | ||||||||||||||||||||||||||
| Other liabilities | 117,793 | 141,972 | 116,093 | ||||||||||||||||||||||||||
| Total Liabilities | 9,489,949 | 9,227,981 | 7,855,451 | ||||||||||||||||||||||||||
| Shareholders' equity | 1,350,568 | 1,400,535 | 1,170,395 | ||||||||||||||||||||||||||
| Total Liabilities & Equity | $ | 10,840,518 | $ | 10,628,516 | $ | 9,025,846 | |||||||||||||||||||||||
| Cost of deposits | 0.06 | % | 0.06 | % | 0.08 | % | |||||||||||||||||||||||
| Interest expense as a % of earning assets | 0.09 | % | 0.07 | % | 0.10 | % | |||||||||||||||||||||||
| Net interest income as a % of earning assets | $ | 81,764 | 3.38 | % | $ | 76,639 | 3.25 | % | $ | 65,933 | 3.23 | % | |||||||||||||||||
| 1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost. | |||||||||||||||||||||||||||||
| Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances. | |||||||||||||||||||||||||||||
| AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1 | (Unaudited) | ||||||||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | |||||||||||||||||||
| Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | ||||||||||||||||||
| Average | Yield/ | Average | Yield/ | ||||||||||||||||
| (Amounts in thousands, except ratios) | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||
| Assets | |||||||||||||||||||
| Earning assets: | |||||||||||||||||||
| Securities: | |||||||||||||||||||
| Taxable | $ | 2,462,447 | $ | 22,428 | 1.82 | % | $ | 1,590,152 | $ | 12,857 | 1.62 | % | |||||||
| Nontaxable | 23,238 | 352 | 3.03 | 25,756 | 373 | 2.90 | |||||||||||||
| Total Securities | 2,485,685 | 22,780 | 1.83 | 1,615,908 | 13,230 | 1.64 | |||||||||||||
| Federal funds sold | 691,105 | 1,631 | 0.48 | 556,425 | 299 | 0.11 | |||||||||||||
| Other investments | 45,631 | 1,219 | 5.39 | 96,422 | 996 | 2.08 | |||||||||||||
| Loans excluding PPP loans | 6,366,194 | 134,322 | 4.25 | 5,121,114 | 110,817 | 4.36 | |||||||||||||
| PPP loans | 44,024 | 2,264 | 10.37 | 557,247 | 12,013 | 4.35 | |||||||||||||
| Total Loans | 6,410,218 | 136,586 | 4.30 | 5,678,361 | 122,830 | 4.36 | |||||||||||||
| Total Earning Assets | 9,632,639 | 162,216 | 3.40 | 7,947,116 | 137,355 | 3.49 | |||||||||||||
| Allowance for credit losses | (88,862 | ) | (88,873 | ) | |||||||||||||||
| Cash and due from banks | 377,831 | 291,626 | |||||||||||||||||
| Premises and equipment | 75,241 | 72,141 | |||||||||||||||||
| Intangible assets | 305,875 | 236,640 | |||||||||||||||||
| Bank owned life insurance | 206,173 | 132,785 | |||||||||||||||||
| Other assets | 226,205 | 165,658 | |||||||||||||||||
| Total Assets | $ | 10,735,102 | $ | 8,757,093 | |||||||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||
| Interest-bearing demand | $ | 2,180,351 | $ | 483 | 0.04 | % | $ | 1,646,587 | $ | 493 | 0.06 | % | |||||||
| Savings | 943,908 | 129 | 0.03 | 756,693 | 255 | 0.07 | |||||||||||||
| Money market | 1,957,435 | 1,149 | 0.12 | 1,673,559 | 1,297 | 0.16 | |||||||||||||
| Time deposits | 528,255 | 904 | 0.35 | 621,844 | 1,711 | 0.55 | |||||||||||||
| Securities sold under agreements to repurchase | 119,298 | 133 | 0.22 | 114,181 | 76 | 0.13 | |||||||||||||
| Other borrowings | 71,706 | 1,015 | 2.85 | 71,425 | 849 | 2.40 | |||||||||||||
| Total Interest-Bearing Liabilities | 5,800,953 | 3,813 | 0.13 | 4,884,289 | 4,681 | 0.19 | |||||||||||||
| Noninterest demand | 3,428,921 | 2,616,856 | |||||||||||||||||
| Other liabilities | 129,812 | 102,450 | |||||||||||||||||
| Total Liabilities | 9,359,686 | 7,603,595 | |||||||||||||||||
| Shareholders' equity | 1,375,413 | 1,153,499 | |||||||||||||||||
| Total Liabilities & Equity | $ | 10,735,102 | $ | 8,757,093 | |||||||||||||||
| Cost of deposits | 0.06 | % | 0.10 | % | |||||||||||||||
| Interest expense as a % of earning assets | 0.08 | % | 0.12 | % | |||||||||||||||
| Net interest income as a % of earning assets | $ | 158,403 | 3.32 | % | $ | 132,674 | 3.37 | % | |||||||||||
| 1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost. | |||||||||||||||||||
| Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances. | |||||||||||||||||||
| CONSOLIDATED QUARTERLY FINANCIAL DATA | (Unaudited) | |||||||||||||
| SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES | ||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||
| (Amounts in thousands) | 2022 | 2022 | 2021 | 2021 | 2021 | |||||||||
| Customer Relationship Funding | ||||||||||||||
| Noninterest demand | ||||||||||||||
| Commercial | $ | 2,945,445 | $ | 2,939,595 | $ | 2,477,111 | $ | 2,535,922 | $ | 2,431,928 | ||||
| Retail | 464,214 | 458,809 | 458,626 | 416,779 | 401,988 | |||||||||
| Public funds | 143,075 | 86,419 | 107,523 | 84,337 | 88,057 | |||||||||
| Other | 40,467 | 37,877 | 32,274 | 49,428 | 30,187 | |||||||||
| Total Noninterest Demand | 3,593,201 | 3,522,700 | 3,075,534 | 3,086,466 | 2,952,160 | |||||||||
| Interest-bearing demand | ||||||||||||||
| Commercial | 769,948 | 610,109 | 497,466 | 554,366 | 545,797 | |||||||||
| Retail | 1,207,698 | 1,392,490 | 1,144,635 | 1,069,668 | 958,619 | |||||||||
| Public funds | 291,502 | 250,963 | 248,111 | 221,131 | 259,468 | |||||||||
| Total Interest-Bearing Demand | 2,269,148 | 2,253,562 | 1,890,212 | 1,845,165 | 1,763,884 | |||||||||
| Total transaction accounts | ||||||||||||||
| Commercial | 3,715,393 | 3,549,704 | 2,974,577 | 3,090,288 | 2,977,725 | |||||||||
| Retail | 1,671,912 | 1,851,299 | 1,603,261 | 1,486,447 | 1,360,607 | |||||||||
| Public funds | 434,577 | 337,382 | 355,634 | 305,468 | 347,525 | |||||||||
| Other | 40,467 | 37,877 | 32,274 | 49,428 | 30,187 | |||||||||
| Total Transaction Accounts | 5,862,349 | 5,776,262 | 4,965,746 | 4,931,631 | 4,716,044 | |||||||||
| Savings | 946,738 | 937,839 | 895,019 | 834,309 | 811,516 | |||||||||
| Money market | ||||||||||||||
| Commercial | 819,452 | 856,117 | 732,639 | 827,901 | 787,894 | |||||||||
| Retail | 914,918 | 931,702 | 840,054 | 834,628 | 737,554 | |||||||||
| Brokered | 106,823 | 126,168 | 8,007 | 196,548 | 187,023 | |||||||||
| Public funds | 70,654 | 85,040 | 71,181 | 92,562 | 94,719 | |||||||||
| Total Money Market | 1,911,847 | 1,999,027 | 1,651,881 | 1,951,639 | 1,807,190 | |||||||||
| Brokered time certificates | — | — | — | 20,000 | 20,000 | |||||||||
| Other time certificates | 468,019 | 530,640 | 554,943 | 596,593 | 481,686 | |||||||||
| 468,019 | 530,640 | 554,943 | 616,593 | 501,686 | ||||||||||
| Total Deposits | $ | 9,188,953 | $ | 9,243,768 | $ | 8,067,589 | $ | 8,334,172 | $ | 7,836,436 | ||||
| Customer sweep accounts | $ | 110,578 | $ | 120,922 | $ | 121,565 | $ | 105,548 | $ | 119,973 | ||||
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 | Six Months Ended | ||||||||||||||||||||||||||
| (Amounts in thousands, except per share data) | 2Q'22 | 1Q'22 | 4Q'21 | 3Q'21 | 2Q'21 | 2Q'22 | 2Q'21 | ||||||||||||||||||||
| Net Income | $ | 32,755 | $ | 20,588 | $ | 36,330 | $ | 22,944 | $ | 31,410 | $ | 53,343 | $ | 65,129 | |||||||||||||
| Total noninterest income | 16,964 | 15,373 | 18,706 | 19,028 | 15,322 | 32,337 | 32,993 | ||||||||||||||||||||
| Securities losses (gains), net | 300 | 452 | 379 | 30 | 55 | 752 | 169 | ||||||||||||||||||||
| Gain on sale of domain name (included in other income) | — | — | (755 | ) | — | — | — | — | |||||||||||||||||||
| Total Adjustments to Noninterest Income | 300 | 452 | (376 | ) | 30 | 55 | 752 | 169 | |||||||||||||||||||
| Total Adjusted Noninterest Income | 17,264 | 15,825 | 18,330 | 19,058 | 15,377 | 33,089 | 33,162 | ||||||||||||||||||||
| Total noninterest expense | 56,148 | 58,917 | 50,263 | 55,268 | 45,784 | 115,065 | 91,904 | ||||||||||||||||||||
| Merger related charges | (3,039 | ) | (6,692 | ) | (482 | ) | (6,281 | ) | (509 | ) | (9,731 | ) | (1,090 | ) | |||||||||||||
| Amortization of intangibles | (1,446 | ) | (1,446 | ) | (1,304 | ) | (1,306 | ) | (1,212 | ) | (2,892 | ) | (2,423 | ) | |||||||||||||
| Branch reductions and other expense initiatives | — | (74 | ) | (168 | ) | (870 | ) | (663 | ) | (74 | ) | (1,112 | ) | ||||||||||||||
| Total Adjustments to Noninterest Expense | (4,485 | ) | (8,212 | ) | (1,954 | ) | (8,457 | ) | (2,384 | ) | (12,697 | ) | (4,625 | ) | |||||||||||||
| Total Adjusted Noninterest Expense | 51,663 | 50,705 | 48,309 | 46,811 | 43,400 | 102,368 | 87,279 | ||||||||||||||||||||
| Income Taxes | 8,886 | 5,834 | 8,344 | 7,049 | 8,785 | 14,720 | 18,942 | ||||||||||||||||||||
| Tax effect of adjustments | 1,213 | 2,196 | 280 | 2,081 | 598 | 3,409 | 1,175 | ||||||||||||||||||||
| Effect of change in corporate tax rate on deferred tax assets | — | — | 774 | — | — | — | — | ||||||||||||||||||||
| Total Adjustments to Income Taxes | 1,213 | 2,196 | 1,054 | 2,081 | 598 | 3,409 | 1,175 | ||||||||||||||||||||
| Adjusted Income Taxes | 10,099 | 8,030 | 9,398 | 9,130 | 9,383 | 18,129 | 20,117 | ||||||||||||||||||||
| Adjusted Net Income | $ | 36,327 | $ | 27,056 | $ | 36,854 | $ | 29,350 | $ | 33,251 | $ | 63,383 | $ | 68,748 | |||||||||||||
| Earnings per diluted share, as reported | $ | 0.53 | $ | 0.33 | $ | 0.62 | $ | 0.40 | $ | 0.56 | $ | 0.86 | $ | 1.17 | |||||||||||||
| Adjusted Earnings per Diluted Share | 0.59 | 0.44 | 0.62 | 0.51 | 0.59 | 1.03 | 1.23 | ||||||||||||||||||||
| Average diluted shares outstanding | 61,923 | 61,704 | 59,016 | 57,645 | 55,901 | 61,818 | 55,827 | ||||||||||||||||||||
| Adjusted Noninterest Expense | $ | 51,663 | $ | 50,705 | $ | 48,309 | $ | 46,811 | $ | 43,400 | $ | 102,368 | $ | 87,279 | |||||||||||||
| Provision for credit losses on unfunded commitments | — | (142 | ) | — | (133 | ) | — | (142 | ) | — | |||||||||||||||||
| Foreclosed property expense and net gain / (loss) on sale | 968 | 164 | 175 | (66 | ) | 90 | 1,132 | 155 | |||||||||||||||||||
| Net Adjusted Noninterest Expense | $ | 52,631 | $ | 50,727 | $ | 48,484 | $ | 46,612 | $ | 43,490 | $ | 103,358 | $ | 87,434 | |||||||||||||
| Revenue | $ | 98,611 | $ | 91,895 | $ | 90,995 | $ | 90,352 | $ | 81,124 | $ | 190,506 | $ | 165,405 | |||||||||||||
| Total Adjustments to Revenue | 300 | 452 | (376 | ) | 30 | 55 | 752 | 169 | |||||||||||||||||||
| Impact of FTE adjustment | 117 | 117 | 123 | 131 | 131 | 234 | 262 | ||||||||||||||||||||
| Adjusted Revenue on a fully taxable equivalent basis | $ | 99,028 | $ | 92,464 | $ | 90,742 | $ | 90,513 | $ | 81,310 | $ | 191,492 | $ | 165,836 | |||||||||||||
| Adjusted Efficiency Ratio | 53.15 | % | 54.86 | % | 53.43 | % | 51.50 | % | 53.49 | % | 53.97 | % | 52.72 | % | |||||||||||||
| Net Interest Income | $ | 81,647 | $ | 76,522 | $ | 72,289 | $ | 71,324 | $ | 65,802 | $ | 158,169 | $ | 132,412 | |||||||||||||
| Impact of FTE adjustment | 117 | 117 | 123 | 131 | 131 | 234 | 262 | ||||||||||||||||||||
| Net Interest Income including FTE adjustment | $ | 81,764 | $ | 76,639 | $ | 72,412 | $ | 71,455 | $ | 65,933 | $ | 158,403 | $ | 132,674 | |||||||||||||
| Total noninterest income | 16,964 | 15,373 | 18,706 | 19,028 | 15,322 | 32,337 | 32,993 | ||||||||||||||||||||
| Total noninterest expense | 56,148 | 58,917 | 50,263 | 55,268 | 45,784 | 115,065 | 91,904 | ||||||||||||||||||||
| Pre-Tax Pre-Provision Earnings | $ | 42,580 | $ | 33,095 | $ | 40,855 | $ | 35,215 | $ | 35,471 | $ | 75,675 | $ | 73,763 | |||||||||||||
| Total Adjustments to Noninterest Income | 300 | 452 | (376 | ) | 30 | 55 | 752 | 169 | |||||||||||||||||||
| Total Adjustments to Noninterest Expense | (3,517 | ) | (8,190 | ) | (1,779 | ) | (8,656 | ) | (2,294 | ) | (11,707 | ) | (4,470 | ) | |||||||||||||
| Adjusted Pre-Tax Pre-Provision Earnings | $ | 46,397 | $ | 41,737 | $ | 42,258 | $ | 43,901 | $ | 37,820 | $ | 88,134 | $ | 78,402 | |||||||||||||
| Average Assets | $ | 10,840,518 | $ | 10,628,516 | $ | 10,061,382 | $ | 9,753,734 | $ | 9,025,846 | $ | 10,735,102 | $ | 8,757,093 | |||||||||||||
| Less average goodwill and intangible assets | (307,411 | ) | (304,321 | ) | (267,692 | ) | (254,980 | ) | (235,964 | ) | (305,875 | ) | (236,640 | ) | |||||||||||||
| Average Tangible Assets | $ | 10,533,107 | $ | 10,324,195 | $ | 9,793,690 | $ | 9,498,754 | $ | 8,789,882 | $ | 10,429,227 | $ | 8,520,453 | |||||||||||||
| Return on Average Assets (ROA) | 1.21 | % | 0.79 | % | 1.43 | % | 0.93 | % | 1.40 | % | 1.00 | % | 1.50 | % | |||||||||||||
| Impact of removing average intangible assets and related amortization | 0.08 | 0.06 | 0.08 | 0.07 | 0.08 | 0.07 | 0.08 | ||||||||||||||||||||
| Return on Average Tangible Assets (ROTA) | 1.29 | 0.85 | 1.51 | 1.00 | 1.48 | 1.07 | 1.58 | ||||||||||||||||||||
| Impact of other adjustments for Adjusted Net Income | 0.09 | 0.21 | (0.02 | ) | 0.23 | 0.04 | 0.16 | 0.05 | |||||||||||||||||||
| Adjusted Return on Average Tangible Assets | 1.38 | 1.06 | 1.49 | 1.23 | 1.52 | 1.23 | 1.63 | ||||||||||||||||||||
| Average Shareholders' Equity | $ | 1,350,568 | $ | 1,400,535 | $ | 1,303,686 | $ | 1,248,547 | $ | 1,170,395 | $ | 1,375,413 | $ | 1,153,499 | |||||||||||||
| Less average goodwill and intangible assets | (307,411 | ) | (304,321 | ) | (267,692 | ) | (254,980 | ) | (235,964 | ) | (305,875 | ) | (236,640 | ) | |||||||||||||
| Average Tangible Equity | $ | 1,043,157 | $ | 1,096,214 | $ | 1,035,994 | $ | 993,567 | $ | 934,431 | $ | 1,069,538 | $ | 916,859 | |||||||||||||
| Return on Average Shareholders' Equity | 9.73 | % | 5.96 | % | 11.06 | % | 7.29 | % | 10.76 | % | 7.82 | % | 11.39 | % | |||||||||||||
| Impact of removing average intangible assets and related amortization | 3.28 | 2.06 | 3.23 | 2.27 | 3.12 | 2.64 | 3.34 | ||||||||||||||||||||
| Return on Average Tangible Common Equity (ROTCE) | 13.01 | 8.02 | 14.29 | 9.56 | 13.88 | 10.46 | 14.73 | ||||||||||||||||||||
| Impact of other adjustments for Adjusted Net Income | 0.96 | 1.99 | (0.18 | ) | 2.16 | 0.39 | 1.49 | 0.39 | |||||||||||||||||||
| Adjusted Return on Average Tangible Common Equity | 13.97 | 10.01 | 14.11 | 11.72 | 14.27 | 11.95 | 15.12 | ||||||||||||||||||||
| Loan interest income1 | $ | 69,388 | $ | 67,198 | $ | 64,487 | $ | 64,517 | $ | 60,440 | $ | 136,586 | $ | 122,830 | |||||||||||||
| Accretion on acquired loans | (2,720 | ) | (3,717 | ) | (3,520 | ) | (3,483 | ) | (2,886 | ) | (6,437 | ) | (5,754 | ) | |||||||||||||
| Interest and fees on PPP loans | (741 | ) | (1,523 | ) | (3,352 | ) | (5,917 | ) | (5,127 | ) | (2,264 | ) | (12,013 | ) | |||||||||||||
| Loan interest income excluding PPP and accretion on acquired loans | $ | 65,927 | $ | 61,958 | $ | 57,615 | $ | 55,117 | $ | 52,427 | $ | 127,885 | $ | 105,063 | |||||||||||||
| Yield on loans1 | 4.29 | 4.30 | 4.31 | 4.49 | 4.33 | 4.30 | 4.36 | ||||||||||||||||||||
| Impact of accretion on acquired loans | (0.16 | ) | (0.24 | ) | (0.24 | ) | (0.24 | ) | (0.21 | ) | (0.21 | ) | (0.20 | ) | |||||||||||||
| Impact of PPP loans | (0.03 | ) | (0.06 | ) | (0.13 | ) | (0.22 | ) | 0.01 | (0.04 | ) | (0.02 | ) | ||||||||||||||
| Yield on loans excluding PPP and accretion on acquired loans | 4.10 | % | 4.00 | % | 3.94 | % | 4.03 | % | 4.13 | % | 4.05 | % | 4.14 | % | |||||||||||||
| Net Interest Income1 | $ | 81,764 | $ | 76,639 | $ | 72,412 | $ | 71,455 | $ | 65,933 | $ | 158,403 | $ | 132,674 | |||||||||||||
| Accretion on acquired loans | (2,720 | ) | (3,717 | ) | (3,520 | ) | (3,483 | ) | (2,886 | ) | (6,437 | ) | (5,754 | ) | |||||||||||||
| Interest and fees on PPP loans | (741 | ) | (1,523 | ) | (3,352 | ) | (5,917 | ) | (5,127 | ) | (2,264 | ) | (12,013 | ) | |||||||||||||
| Net interest income excluding PPP and accretion on acquired loans | $ | 78,303 | $ | 71,399 | $ | 65,540 | $ | 62,055 | $ | 57,920 | $ | 149,702 | $ | 114,907 | |||||||||||||
| Net Interest Margin | 3.38 | 3.25 | 3.16 | 3.22 | 3.23 | 3.32 | 3.37 | ||||||||||||||||||||
| Impact of accretion on acquired loans | (0.12 | ) | (0.15 | ) | (0.15 | ) | (0.15 | ) | (0.14 | ) | (0.14 | ) | (0.15 | ) | |||||||||||||
| Impact of PPP loans | (0.02 | ) | (0.05 | ) | (0.10 | ) | (0.18 | ) | (0.06 | ) | (0.03 | ) | (0.08 | ) | |||||||||||||
| Net interest margin excluding PPP and accretion on acquired loans | 3.24 | % | 3.05 | % | 2.91 | % | 2.89 | % | 3.03 | % | 3.15 | % | 3.14 | % | |||||||||||||
| Security interest income1 | $ | 12,562 | $ | 10,218 | $ | 8,750 | $ | 7,956 | $ | 6,745 | $ | 22,780 | $ | 13,230 | |||||||||||||
| Tax equivalent adjustment on securities | (36 | ) | (37 | ) | (37 | ) | (38 | ) | (39 | ) | (73 | ) | (78 | ) | |||||||||||||
| Security interest income excluding tax equivalent adjustment | $ | 12,526 | $ | 10,181 | $ | 8,713 | $ | 7,918 | $ | 6,706 | $ | 22,707 | $ | 13,152 | |||||||||||||
| Loan interest income1 | $ | 69,388 | $ | 67,198 | $ | 64,487 | $ | 64,517 | $ | 60,440 | $ | 136,586 | $ | 122,830 | |||||||||||||
| Tax equivalent adjustment on loans | (81 | ) | (80 | ) | (86 | ) | (93 | ) | (92 | ) | (161 | ) | (184 | ) | |||||||||||||
| Loan interest income excluding tax equivalent adjustment | $ | 69,307 | $ | 67,118 | $ | 64,401 | $ | 64,424 | $ | 60,348 | $ | 136,425 | $ | 122,646 | |||||||||||||
| Net Interest Income1 | $ | 81,764 | $ | 76,639 | $ | 72,412 | $ | 71,455 | $ | 65,933 | $ | 158,403 | $ | 132,674 | |||||||||||||
| Tax equivalent adjustment on securities | (36 | ) | (37 | ) | (37 | ) | (38 | ) | (39 | ) | (73 | ) | (78 | ) | |||||||||||||
| Tax equivalent adjustment on loans | (81 | ) | (80 | ) | (86 | ) | (93 | ) | (92 | ) | (161 | ) | (184 | ) | |||||||||||||
| Net interest income excluding tax equivalent adjustment | $ | 81,647 | $ | 76,522 | $ | 72,289 | $ | 71,324 | $ | 65,802 | $ | 158,169 | $ | 132,412 | |||||||||||||
| 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 net income for Q2 2022?
How did Seacoast's adjusted net income change in Q2 2022?
What was the net interest margin for Seacoast in Q2 2022?
How much did Seacoast grow its total deposits year-over-year?
What notable acquisitions did Seacoast complete recently?
