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 $29.5 million, or $0.35 per diluted share, compared to $31.4 million, or $0.37 per diluted share in the third quarter of 2023 and $23.9 million, or $0.34 per diluted share in the fourth quarter of 2022. 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 in the third quarter of 2023 and $39.9 million, or $0.56 per diluted share in the fourth quarter of 2022. Adjusted net income¹ for the year ended December 31, 2023 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.

Pre-tax pre-provision earnings¹ were $42.0 million in the fourth quarter of 2023, a decrease of 3% compared to the third quarter of 2023 and a decrease of 9% 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, or 5%, 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 of 5% compared to the third quarter of 2023 and a decrease of 22% 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, or 19%, when compared to the year ended December 31, 2022.

For the fourth quarter of 2023, return on average tangible assets was 0.99% and return on average tangible shareholders' equity was 11.22%, compared to 1.04% and 11.90%, respectively, in the prior quarter, and 0.94% and 10.36%, respectively, in the prior year quarter. Adjusted return on average tangible assets¹ in the fourth quarter of 2023 was 1.04% and adjusted return on average tangible shareholders' equity¹ was 11.80%, compared to 1.12% and 12.79%, respectively, in the prior quarter, and 1.36% and 15.05%, respectively, in the prior year quarter. For the year ended December 31, 2023, return on average tangible assets was 0.91% and return on average tangible shareholders' equity was 10.38%, compared to 1.06% and 10.70%, respectively, for the year ended December 31, 2022. For the year ended December 31, 2023, adjusted return on average tangible assets¹ was 1.12% and adjusted return on average tangible shareholders' equity¹ was 12.80%, compared to 1.27% and 12.86%, respectively, for the year ended December 31, 2022.

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 $5 million and a reduction in annual expenses of approximately $15 million."

Shaffer added, "Early in the fourth quarter, we took advantage of market conditions and repurchased 546,200 shares of our common stock at $19.80 per share. Even with this repurchase activity, the ratio of tangible common equity to tangible assets increased to 9.31% and tangible book value per share increased to $15.08."

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, or 7%, compared to the prior quarter, and a decrease of $9.2 million, or 7%, 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, or 31%, 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, or 5%, compared to the prior quarter, and a decrease of $6.7 million, or 5%, 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, or 31%, 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 of 3% compared to the third quarter of 2023 and a decrease of 9% 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, or 5%, 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 of 5% compared to the third quarter of 2023 and a decrease of 22% 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, or 19%, 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, or 7%, from the third quarter of 2023 and a decrease of $8.9 million, or 7%, 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, or 33%, 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 to 3.57% in the third quarter of 2023. Excluding the effects of accretion on acquired loans, net interest margin decreased 11 basis points to 3.02% in the fourth quarter of 2023 compared to 3.13% in the third quarter of 2023. Loan yields contracted eight basis points from the prior quarter to 5.85% due to lower accretion of purchase discount on acquired loans. Excluding the effects of accretion on acquired loans, loan yields increased six basis points, from 5.34% in the third quarter of 2023 to 5.40% in the fourth quarter of 2023. Securities yields increased 10 basis points to 3.42%, compared to 3.32% in the prior quarter. The cost of deposits increased 21 basis points, from 1.79% in the prior quarter, to 2.00% for the fourth quarter of 2023.

Noninterest income totaled $17.3 million in the fourth quarter of 2023, a decrease of $0.5 million, or 3%, compared to the prior quarter, and a decrease of $0.3 million, or 2%, 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, or 3%, 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, or 44%, 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, or 50%, to $0.9 million due to higher saleable originations.
- Other income increased $0.4 million, or 8%, to $4.7 million, reflecting higher loan swap-related income.
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, or 8%, compared to the prior quarter, and a decrease of $5.1 million, or 6%, 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.
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 to 62.60% in the third quarter of 2023 and 63.39% in the prior year quarter. The adjusted efficiency ratio¹ was 60.32% in the fourth quarter of 2023, compared to 60.19% in the third quarter of 2023 and 51.52% in the prior year quarter. The efficiency ratio for the year ended December 31, 2023 was 64.07% compared to 60.01% for the year ended December 31, 2022. The adjusted efficiency ratio¹ for the year ended December 31, 2023 was 57.35% compared to 53.03% 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, or 1%, 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, or 26%, 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 of 95% compared to $244.6 million in the third quarter of 2023. New add on yields were near 8% 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.
Loan pipelines (loans in underwriting and approval or approved and not yet closed) totaled $393.0 million as of December 31, 2023, an increase of 11% from September 30, 2023 and a decrease of 13% from December 31, 2022.
- Commercial pipelines were $306.5 million as of December 31, 2023, an increase of 18% from $259.4 million at September 30, 2023, and a decrease of 21% 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 of 49% 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.
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, or 18%, 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 were 29% of total deposits. The Company has liquidity sources including cash and lines of credit with the Federal Reserve and Federal Home Loan Bank that represent 145% of uninsured deposits, and 176% of uninsured and uncollateralized deposits.
- Consumer deposits represent 40% of overall deposit funding with an average consumer customer balance of $24 thousand. Commercial deposits represent 60% of overall deposit funding with an average business customer balance of $109 thousand.
Federal Home Loan Bank advances totaled $50.0 million at December 31, 2023 with an interest rate of 3.23%. In the aggregate, borrowed funds, including FHLB advances, subordinated debt and brokered deposits represented only 2.2% 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 were 0.65% at December 31, 2023, 0.41% at September 30, 2023, and 0.35% at December 31, 2022.
Nonperforming assets to total assets increased to 0.50% at December 31, 2023, compared to 0.33% at September 30, 2023, and 0.26% 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, and 1.40% 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% and 246% of total bank-level risk-based capital, respectively, compared to 51% and 248%, respectively, at September 30, 2023. On a consolidated basis, construction and land development and commercial real estate loans represent 45% and 228%, 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 to 14.0% at September 30, 2023, and 14.8% at December 31, 2022. The Total capital ratio was 15.9%, the Common Equity Tier 1 capital ratio was 13.9%, and the Tier 1 leverage ratio was 11.0% 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 to 8.68% at September 30, 2023, and 9.08% 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 been 8.68%.
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 represented 176% 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 26^th, 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 $14.6 billion in assets and $11.8 billion in deposits as of December 31, 2023. Seacoast provides integrated financial services including commercial and consumer banking, wealth management, and mortgage services to customers at 77 full-service branches across Florida, and through advanced mobile and online banking solutions. Seacoast National Bank is the wholly-owned subsidiary bank of Seacoast Banking Corporation of Florida. For more information about Seacoast, visit www.SeacoastBanking.com.

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 margin^2,3		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 basis^3,4		0.99			1.04			1.06			0.52			0.94			0.91			1.06
Adjusted return on average tangible assets^1,3,4		1.04			1.12			1.41			0.90			1.36			1.12			1.27
Pre-tax pre-provision return on average tangible assets^1,3,4		1.35			1.38			1.33			1.58			1.69			1.41			1.61
Adjusted pre-tax pre-provision return on average tangible assets^1,3,4		1.48			1.55			1.85			2.18			2.28			1.76			1.91
Net adjusted noninterest expense to average tangible assets^1,3,4		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 basis^3,4		11.22			11.90			12.08			5.96			10.36			10.38			10.70
Adjusted return on average tangible common equity^1,3,4		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 $250,000		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

Seacoast Reports Fourth Quarter and Full Year 2023 Results