Well-Positioned Balance Sheet with Strong Capital and Liquidity

Distinctive Deposit Franchise with Granular, Longstanding Customer Base

STUART, Fla., July 27, 2023 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ:SBCF) today reported net income in the second quarter of 2023 of $31.2 million, or $0.37 per diluted share, compared to $11.8 million, or $0.15 per diluted share in the first quarter of 2023 and $32.8 million, or $0.53 per diluted share in the second quarter of 2022. For the six months ended June 30, 2023, net income was $43.1 million, or $0.52 per diluted share, a decrease of 19% compared to the six months ended June 30, 2022.

Adjusted net income¹ for the second quarter of 2023 was $49.2 million, or $0.58 per diluted share, compared to $29.2 million, or $0.36 per diluted share in the first quarter of 2023 and $36.3 million, or $0.59 per diluted share in the second quarter of 2022. Adjusted net income¹ for the six months ended June 30, 2023 was $78.4 million, or $0.94 per diluted share, an increase of 24% compared to the six months ended June 30, 2022.

For the second quarter of 2023, return on average tangible assets was 1.06% and return on average tangible shareholders' equity was 12.08%, compared to 0.52% and 5.96%, respectively, in the prior quarter, and 1.29% and 13.01%, respectively, in the prior year quarter. Adjusted return on average tangible assets¹ in the second quarter of 2023 was 1.41% and adjusted return on average tangible shareholders' equity¹ was 16.08%, compared to 0.90% and 10.34%, respectively, in the prior quarter, and 1.38% and 13.97%, respectively, in the prior year quarter. For the six months ended June 30, 2023, return on average tangible assets was 0.80% and return on average tangible shareholders' equity was 9.14%, compared to 1.07% and 10.46%, respectively, for the six months ended June 30, 2022. For the six months ended June 30, 2023, adjusted return on average tangible assets¹ was 1.16% and adjusted return on average tangible shareholders' equity¹ was 13.32%, compared to 1.23% and 11.95%, respectively, for the six months ended June 30, 2022.

Charles M. Shaffer, Seacoast's Chairman and CEO said, "Seacoast delivered another quarter of robust financial performance, with strong adjusted earnings leading to an adjusted return on tangible common equity of 16.1%. Our capital and liquidity ratios were strong and our asset quality remains excellent. During the quarter, we successfully completed the Professional Bank conversion, wrapping up a significant period of M&A activity that has boosted Seacoast beyond the $10 billion asset threshold and definitively positioned the Company as Florida's Bank."

Shaffer added, "Seacoast is committed to our fortress balance sheet, with an allowance for loan losses of $159.7 million and an additional $201.8 million discount on acquired loans, providing significant loss absorption capacity. Our second quarter ratio of tangible common equity to tangible assets increased to 8.53% as we moved past the initially dilutive effect of recent acquisitions, reflecting commitment to driving shareholder value creation."

Shaffer concluded, "Our strategic focus for the balance of the year will be on relationship-driven customer acquisition and carefully managing our expense base while investing in tactics to drive low-cost deposit growth. We believe that this rigorous approach will support solid capital growth, produce a broadly diversified and stable funding base, and generate increased franchise value over the long run."

Acquisition Update

In June 2023, we successfully completed the integration of Professional Holding Corp. ("Professional"), including the consolidation of five branches in the South Florida market. Merger-related expense synergies are expected to be fully realized in the second half of 2023. Direct merger-related costs recorded during the second quarter of 2023 totaled $15.6 million. We expect merger-related costs to be insignificant in the third quarter of 2023.

Financial Results

Income Statement

Net income was $31.2 million, or $0.37 per diluted share, for the second quarter of 2023 compared to net income of $11.8 million, or $0.15 per diluted share, for the prior quarter, and $32.8 million, or $0.53 per diluted share, for the prior year quarter. For the six months ended June 30, 2023, net income was $43.1 million, or $0.52 per diluted share, compared to $53.3 million, or $0.86 per diluted share, for the six months ended June 30, 2022. The results for the six months ended June 30, 2023 included the $26.6 million day-1 provision for credit losses on loans acquired in the Professional acquisition. Adjusted net income¹ for the second quarter of 2023 was $49.2 million, or $0.58 per diluted share, compared to $29.2 million, or $0.36 per diluted share, for the prior quarter, and $36.3 million, or $0.59 per diluted share, for the prior year quarter. For the six months ended June 30, 2023, adjusted net income¹ was $78.4 million, or $0.94 per diluted share, compared to $63.4 million, or $1.03 per diluted share, for the six months ended June 30, 2022.
Net revenues were $148.5 million in the second quarter of 2023, a decrease of $5.1 million, or 3%, compared to the prior quarter, and an increase of $49.9 million, or 51%, compared to the prior year quarter. For the six months ended June 30, 2023, net revenues were $302.1 million, an increase of $111.6 million, or 59%, compared to the six months ended June 30, 2022. Adjusted revenues¹ were $148.7 million in the second quarter of 2023, a decrease of $2.7 million, or 2%, compared to the prior quarter, and an increase of $49.8 million, or 50%, compared to the prior year quarter. For the six months ended June 30, 2023, adjusted revenues¹ were $300.1 million, an increase of $108.8 million, or 57%, compared to the six months ended June 30, 2022.
Pre-tax pre-provision earnings¹ were $40.9 million in the second quarter of 2023, a decrease of 12% compared to the first quarter of 2023 and a decrease of 4% compared to the second quarter of 2022. Adjusted pre-tax pre-provision earnings¹ were $64.9 million in the second quarter of 2023, a decrease of 9% compared to the first quarter of 2023 and an increase of 40% compared to the second quarter of 2022. Adjusted pre-tax pre-provision earnings¹ for the six months ended June 30, 2023 were $135.9 million, an increase of $47.8 million, or 54%, when compared to the six months ended June 30, 2022.
Net interest income totaled $127.0 million in the second quarter of 2023, a decrease of $4.2 million, or 3%, from the first quarter of 2023 and an increase of $45.3 million, or 56%, compared to the second quarter of 2022. When excluding accretion on acquired loans, net interest income declined $2.4 million. Accretion on acquired loans totaled $14.2 million in the second quarter of 2023, $15.9 million in the first quarter of 2023, and $2.7 million in the second quarter of 2022. For the six months ended June 30, 2023, net interest income was $258.1 million, an increase of $99.9 million, or 63%, compared to the six months ended June 30, 2022. Accretion on acquired loans totaled $30.1 million for the six months ended June 30, 2023, compared to $6.4 million for the six months ended June 30, 2022.
Net interest margin decreased 45 basis points to 3.86% in the second quarter of 2023 compared to 4.31% in the first quarter of 2023. The decline in the net interest margin from the prior quarter was driven by the impact of rising rates on the competitive environment for deposits, the continued effect of an inverted yield curve, and lower accretion of purchase discounts on acquired loans. Loan yields increased three basis points to 5.89%. The effect on loan yields of accretion of purchase discounts on acquired loans in the second quarter of 2023 was an increase of 56 basis points, compared to an increase of 69 basis points in the first quarter of 2023. Securities yields increased 28 basis points to 3.13%, including approximately 12 basis points of benefit from interest rate swaps initiated in the second quarter. The cost of deposits increased 61 basis points, from 77 basis points in the prior quarter, to 1.38% for the second quarter of 2023.
Noninterest income totaled $21.6 million in the second quarter of 2023, a decrease of $0.9 million, or 4%, compared to the prior quarter, and an increase of $4.6 million, or 27%, compared to the prior year quarter. For the six months ended June 30, 2023, noninterest income was $44.0 million, an increase of $11.7 million, or 36%, compared to the six months ended June 30, 2022. Results for the second quarter of 2023 included the following:
- Service charges on deposits increased $0.3 million, or 7%, compared to the prior quarter and $1.2 million, or 34%, year over year, including the continued benefit of the expansion of treasury management services to commercial customers.
- Interchange income totaled $5.1 million in the second quarter, an increase of $0.4 million, or 8%, when compared to the prior quarter and $0.8 million, or 19%, compared to the prior year quarter. As a reminder, beginning in the third quarter of 2023, the Company's interchange income will be reduced by the requirements of the Durbin amendment, which became effective for the Company on July 1, 2023.
- The wealth management division continues to demonstrate notable success in building relationships, and during the second quarter of 2023, income increased $0.3 million, or 8%, compared to the prior quarter and $0.5 million, or 20%, compared to the prior year quarter. Assets under management increased by $60 million in the second quarter of 2023, bringing total assets under management to $1.6 billion, up 36% from the prior year.
- Mortgage banking fees totaled $0.6 million in the second quarter, an increase of $0.2 million, or 35%, due to higher saleable production.
- Other income decreased by $1.8 million compared to the prior quarter, primarily the result of the recognition in the prior quarter of $2.1 million in bank owned life insurance ("BOLI") death benefits.
The provision for credit losses was a net benefit of $0.8 million in the second quarter of 2023, compared to a provision of $31.6 million in the first quarter of 2023 and a provision of $0.8 million in the second quarter of 2022. The provision for credit losses in the first quarter of 2023 included $26.6 million in day-1 provision recorded at the acquisition of Professional.
Noninterest expense was $107.9 million in the second quarter of 2023, an increase of $0.4 million compared to the prior quarter, and an increase of $51.7 million, or 92%, compared to the prior year quarter. The second quarter of 2023 included $15.6 million of merger-related expenses, compared to $17.5 million in the prior quarter and $3.0 million in the prior year quarter. Noninterest expense was $215.3 million for the six months ended June 30, 2023, including $33.2 million in merger-related charges, compared to $115.1 million in the six months ended June 30, 2022, which included $9.7 million in merger-related charges. Changes compared to the first quarter of 2023 included:
- Salaries and wages decreased $2.5 million to $45.2 million in the second quarter of 2023. The second quarter of 2023 included $1.6 million in merger-related expenses, compared to $4.2 million in the first quarter of 2023.
- In the third quarter of 2023, we are continuing our focus on efficiency and streamlining operations, and in late July we executed a reduction in the Company's workforce by approximately 5%. The Company will incur severance charges in a range of approximately $2.0 to $3.0 million. The resulting lower compensation expense in the third quarter of 2023 will largely be offset by investments in marketing expenses to drive low-cost deposit growth, and lower expense deferral associated with slowing loan originations. As a reminder, under the relevant accounting guidance, the Company defers the expenses associated with the origination of new loans, and recognizes this expense as a reduction to loan yield over the life of the loan. We expect the full benefit of the reduction in workforce to materialize in the fourth quarter of 2023.
- Employee benefits decreased $1.1 million to $7.5 million in the second quarter of 2023 as a result of higher seasonal payroll taxes impacting the first quarter of 2023.
- Outsourced data processing costs increased $5.7 million to $20.2 million in the second quarter of 2023. The second quarter of 2023 included $10.9 million in merger-related expenses, compared to $6.6 million in the first quarter of 2023. Termination penalties related to the Professional technology contracts were recorded in the second quarter in conjunction with the system conversion.
- Telephone and data lines increased $0.4 million to $1.5 million in the second quarter of 2023 reflecting the expansion of the branch footprint.
- Legal and professional fees decreased by $3.4 million to $4.1 million in the second quarter of 2023, and included $1.7 million in merger-related expenses during the second quarter of 2023 compared to $4.8 million of merger-related expenses in the first quarter of 2023.
- Amortization of intangibles increased by $0.9 million to $7.7 million resulting from the first full quarter of amortization of the core deposit intangible assets acquired from Professional. These assets are amortized using an accelerated amortization method.
- Other noninterest expenses increased $1.1 million to $8.3 million in the second quarter of 2023, primarily attributed to maintaining parallel activities and processes prior to the conversion of Professional in June 2023.
Seacoast recorded $10.2 million of income tax expense in the second quarter of 2023, compared to $2.7 million in the first quarter of 2023, and $8.9 million in the second quarter of 2022, with an effective tax rate of 24.6%, 18.6%, and 21.3%, respectively. Impacts related to stock-based compensation were tax expense of $0.3 million in the second quarter of 2023, tax benefits of $0.2 million in the first quarter of 2023, and tax benefits of $0.4 million in the second quarter of 2022. The first quarter of 2023 included a discrete benefit of $0.6 million related to the BOLI distribution which, combined with lower overall pre-tax income, resulted in a lower effective tax rate in that period.
The efficiency ratio was 67.34% in the second quarter of 2023, compared to 65.43% in the first quarter of 2023 and 56.22% in the prior year quarter. The adjusted efficiency ratio¹ was 56.44% in the second quarter of 2023, compared to 53.10% in the first quarter of 2023 and 53.15% in the prior year quarter. The Company continues to remain keenly focused on disciplined expense control. The increase in the adjusted efficiency ratio primarily reflects the impact of higher deposit rates on net interest income in the period. The adjusted efficiency ratio¹ for the six months ended June 30, 2023 was 54.76% compared to 53.97% for the six months ended June 30, 2022.

Balance Sheet

At June 30, 2023, the Company had total assets of $15.0 billion and total shareholders' equity of $2.1 billion. Book value per share was $24.14 on June 30, 2023, compared to $24.24 on March 31, 2023, and $21.65 on June 30, 2022. Tangible book value per share totaled $14.24 on June 30, 2023 compared to $14.25 on March 31, 2023 and $16.66 on June 30, 2022. Removing the impact of the change in accumulated comprehensive income, tangible book value per share increased by $0.20.
Debt securities totaled $2.6 billion on June 30, 2023, a decrease of $129.8 million, or 5%, compared to March 31, 2023. Debt securities include approximately $1.9 billion in securities held at fair value and classified as available for sale. The unrealized loss on these securities is fully reflected in the value presented on the balance sheet. The portfolio also includes $707.8 million in securities classified as held to maturity with a fair value of $577.6 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 decreased $16.5 million when compared to the prior quarter, totaling $10.1 billion as of June 30, 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 given the current environment.
Loan originations were $518.9 million in the second quarter of 2023, a decrease of 3% compared to $536.3 million in the first quarter of 2023.
- Commercial originations were $317.4 million during the second quarter of 2023, compared to $321.7 million in the first quarter of 2023, and $461.9 million in the second quarter of 2022.
- Consumer originations in the second quarter of 2023 were $97.2 million, compared to $110.6 million in the first quarter of 2023, and $130.8 million in the second quarter of 2022.
- Residential loans originated for sale in the secondary market totaled $19.1 million in the second quarter of 2023, compared to $13.9 million in the first quarter of 2023, and $42.7 million in the second quarter of 2022.
- Closed residential loans retained in the portfolio totaled $85.3 million in the second quarter of 2023, compared to $90.1 million in the first quarter of 2023, and $103.0 million in the second quarter of 2022.
Pipelines (loans in underwriting and approval or approved and not yet closed) totaled $284.6 million on June 30, 2023, a decrease of 27% from March 31, 2023, and a decrease of 54% from June 30, 2022.
- Commercial pipelines were $217.6 million as of June 30, 2023, a decrease of 27% from $297.4 million at March 31, 2023, and a decrease of 54% from $476.7 million at June 30, 2022. The decline in pipeline quarter over quarter was the result of the impact of higher rates and a continued selective approach on new credit facilities given a cautious economic outlook.
- Consumer pipelines were $28.4 million as of June 30, 2023, a decrease of $10.3 million from $38.7 million at March 31, 2023, and a decrease of 62% from $75.5 million at June 30, 2022.
- Residential saleable pipelines were $11.5 million as of June 30, 2023, compared to $6.6 million at March 31, 2023, and $14.7 million at June 30, 2022. Retained residential pipelines were $27.1 million as of June 30, 2023, compared to $48.4 million at March 31, 2023, and $53.1 million at June 30, 2022.
Total deposits were $12.3 billion as of June 30, 2023, a decrease of $26.4 million when compared to March 31, 2023, and an increase of $3.1 billion, or 34%, compared to June 30, 2022. Seacoast's granular, longstanding deposit base is a hallmark of our franchise, and in the current environment serves as a significant source of strength. The Company continues to maintain balance sheet flexibility and ended the quarter with a loan to deposit ratio of 82%.
- At June 30, 2023, transaction account balances represented 57% of overall deposits.
- Noninterest bearing demand deposits represent 34% of overall deposits.
- Average deposits per banking center were $157 million at June 30, 2023 compared to $148 million at March 31, 2023.
- Uninsured deposits represented only 34% of overall deposit accounts as of June 30, 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 28% 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 155% of uninsured deposits, and 184% of uninsured and uncollateralized deposits.
- Consumer deposits represent 43% of overall deposit funding with an average consumer customer balance of $23 thousand. Commercial deposits represent 57% of overall deposit funding with an average business customer balance of $109 thousand.
Federal Home Loan Bank advances totaled $160.0 million at June 30, 2023 with a weighted average interest rate of 3.64%. In the aggregate, borrowed funds, including FHLB advances, subordinated debt, and brokered deposits represented only 6.6% of total liabilities as of June 30, 2023.

Asset Quality

Credit metrics remain strong with charge-offs, non-accruals, and criticized assets at historically low levels. The Company remains diligent in its monitoring of these metrics, as well as changes in the broader economic environment.
Nonperforming loans were $48.3 million at June 30, 2023. Nonperforming loans to total loans outstanding were 0.48% at June 30, 2023, 0.50% at March 31, 2023, and 0.40% at June 30, 2022.
Nonperforming assets to total assets decreased to 0.37% at June 30, 2023, compared to 0.38% at March 31, 2023, and increased from 0.27% at June 30, 2022.
The ratio of allowance for credit losses to total loans was 1.58% at June 30, 2023, 1.54% at March 31, 2023, and 1.39% at June 30, 2022.
Net charge-offs of $0.7 million for the second quarter of 2023 compared to $3.2 million in the first quarter of 2023 and compared to a net recovery of $0.1 million in the second quarter of 2022. Net charge-offs for the four most recent quarters averaged 0.06%.
Portfolio diversification, in terms of asset mix, industry, and loan type, has been a critical element of the Company's lending strategy. Exposure across industries and collateral types is broadly distributed. Seacoast's average loan size is $278 thousand, and the average commercial loan size is $685 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 52% and 256% of total bank-level risk-based capital, respectively, compared to 48% and 258%, respectively, at March 31, 2023. On a consolidated basis, construction and land development and commercial real estate loans represent 47% and 236%, respectively, of total consolidated risk-based capital.

Capital and Liquidity

The Company continues to operate with a fortress balance sheet with a tier 1 capital ratio at June 30, 2023 of 13.9% compared to 13.4% at March 31, 2023, and 16.8% at June 30, 2022. The total capital ratio was 15.0%, the common equity tier 1 capital ratio was 12.9%, and the tier 1 leverage ratio was 10.8% at June 30, 2023. The Company is considered "well capitalized" based on applicable U.S. regulatory capital ratio requirements.
In April 2023, the Company announced an increase to its common share dividend by $0.01 to $0.18 per share.
Cash and cash equivalents at June 30, 2023 totaled $727.9 million.
Our Board of Directors has approved a share repurchase program of up to $100 million in shares of the Company's common stock. During the second quarter of 2023, 2,515 shares were repurchased under the program at a weighted average price of $17.99 per share.
The Company's loan to deposit ratio was 82% at June 30, 2023, providing liquidity and flexibility moving forward.
Tangible common equity to tangible assets was 8.53% at June 30, 2023, compared to 8.36% at March 31, 2023, and 9.74% at June 30, 2022. If all held-to-maturity securities were adjusted to fair value, the tangible common equity ratio would have been 7.87%.
At June 30, 2023, in addition to $727.9 million in cash, the Company had $5.7 billion in available borrowing capacity, including $4.7 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 June 30, 2023 represented 184% of uninsured and uncollateralized deposits.

FINANCIAL HIGHLIGHTS
(Amounts in thousands except per share data)							(Unaudited)
	Quarterly Trends

	2Q'23			1Q'23				4Q'22			3Q'22			2Q'22
Selected balance sheet data:
Gross loans	$	10,117,919		$	10,134,395			$	8,144,724		$	6,690,845		$	6,541,548
Total deposits		12,283,267			12,309,701				9,981,595			8,765,414			9,188,953
Total assets		15,041,932			15,255,408				12,145,762			10,345,235			10,811,704

Performance measures:
Net income	$	31,249		$	11,827			$	23,927		$	29,237		$	32,755
Net interest margin		3.86	%		4.31	%			4.36	%		3.67	%		3.38	%
Pre-tax pre-provision earnings¹		40,864			46,321				45,999			43,143			42,580
Average diluted shares outstanding		85,536			80,717				71,374			61,961			61,923
Diluted earnings per share (EPS)	$	0.37		$	0.15			$	0.34		$	0.47		$	0.53
Return on (annualized):
Average assets (ROA)		0.84	%		0.34	%			0.78	%		1.10	%		1.21	%
Average tangible assets (ROTA)²		1.06			0.52				0.94			1.17			1.29
Average tangible common equity (ROTCE)²		12.08			5.96				10.36			11.53			13.01
Tangible common equity to tangible assets²		8.53			8.36				9.08			9.79			9.74
Tangible book value per share²	$	14.24		$	14.25			$	14.69		$	15.98		$	16.66
Efficiency ratio		67.34	%		65.43	%			63.39	%		57.13	%		56.22	%

Adjusted operating measures¹:
Adjusted net income	$	49,203		$	29,241			$	39,926		$	32,837		$	36,327
Adjusted pre-tax pre-provision earnings		64,856			71,081				66,649			48,989			46,397
Adjusted diluted EPS		0.58			0.36				0.56			0.53			0.59
Adjusted ROTA²		1.41	%		0.90	%			1.36	%		1.27	%		1.38	%
Adjusted ROTCE²		16.08			10.34				15.05			12.48			13.97
Adjusted efficiency ratio		56.44			53.10				51.52			53.28			53.15
Net adjusted noninterest expense as a percent of average tangible assets²		2.40			2.47				2.42			2.16			2.00

Other data:
Market capitalization³	$	1,880,407		$	2,005,241			$	2,233,761		$	1,858,429		$	2,028,996
Full-time equivalent employees		1,670			1,650				1,490			1,156			1,095
Number of ATMs		96			97				100			79			79
Full-service banking offices		78			83				78			58			58
¹Non-GAAP measure, see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP.
²The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.
³Common shares outstanding multiplied by closing bid price on last day of each period.

OTHER INFORMATION

Conference Call Information

Seacoast will host a conference call July 28^th, 2023, at 10:00 a.m. Eastern Time, to discuss the second quarter 2023 earnings results and business trends. Investors may call in (toll-free) by dialing (800) 736-4594. Charts will be used during the conference call and may be accessed at Seacoast's website at www.SeacoastBanking.com by selecting "Presentations" under the heading "News/Events." Additionally, a recording of the call will be made available to individuals shortly after the conference call and can be accessed via a link at www.SeacoastBanking.com under the heading "Corporate Information." The recording will be available for one year.

About Seacoast Banking Corporation of Florida (NASDAQ:SBCF)

Seacoast Banking Corporation of Florida (NASDAQ:SBCF) is one of the largest community banks headquartered in Florida with approximately $15.0 billion in assets and $12.3 billion in deposits as of June 30, 2023. Seacoast provides integrated financial services including commercial and consumer banking, wealth management, and mortgage services to customers at 78 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, including Professional Holding Corp., or expects to acquire, as well as statements with respect to Seacoast's objectives, strategic plans, expectations and intentions and other statements that are not historical facts. Actual results may differ from those set forth in the forward-looking statements.

Forward-looking statements include statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates and intentions about future performance and involve known and unknown risks, uncertainties and other factors, which may be beyond the Company's control, and which may cause the actual results, performance or achievements of Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") or its wholly-owned banking subsidiary, Seacoast National Bank ("Seacoast Bank"), to be materially different from 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 the recent adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; governmental monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve, as well as legislative, tax and regulatory changes, including those that impact the money supply and inflation and the possibility that the U.S. could default on its debt obligations; the risks of changes in interest rates on the level and composition of deposits (as well as the cost of, and competition for, deposits), loan demand, liquidity and the values of loan collateral, securities, and interest rate sensitive assets and liabilities; interest rate risks, sensitivities and the shape of the yield curve; changes in accounting policies, rules and practices; changes in retail distribution strategies, customer preferences and behavior generally and as a result of economic factors; changes in the availability and cost of credit and capital in the financial markets; changes in the prices, values and sales volumes of residential and commercial real estate; the Company's concentration in commercial real estate loans and in real estate collateral in Florida; Seacoast's ability to comply with any regulatory requirements; the effects of problems encountered by other financial institutions that adversely affect Seacoast or the banking industry; inaccuracies or other failures from the use of models, including the failure of assumptions and estimates, as well as differences in, and changes to, economic, market and credit conditions; the impact on the valuation of Seacoast's investments due to market volatility or counterparty payment risk, as well as the effect of a decline in stock market prices on our fee income from our wealth management business; statutory and regulatory dividend restrictions; increases in regulatory capital requirements for banking organizations generally; the risks of mergers, acquisitions and divestitures, including Seacoast's ability to continue to identify acquisition targets, successfully acquire and integrate desirable financial institutions and realize expected revenues and revenue synergies; changes in technology or products that may be more difficult, costly, or less effective than anticipated; the Company's ability to identify and address increased cybersecurity risks; fraud or misconduct by internal or external, which Seacoast may not be able to prevent, detect or mitigate; inability of Seacoast's risk management framework to manage risks associated with the Company's business; dependence on key suppliers or vendors to obtain equipment or services for the business on acceptable terms, including the impact of supply chain disruptions; reduction in or the termination of Seacoast's ability to use the online- or mobile-based platform that is critical to the Company's business growth strategy; the effects of war or other conflicts, including the impacts related to or resulting from Russia's military action in Ukraine, acts of terrorism, natural disasters, including hurricanes in the Company's footprint, health emergencies, epidemics or pandemics, or other catastrophic events that may affect general economic conditions; unexpected outcomes of and the costs associated with, existing or new litigation involving the Company, including as a result of the Company's participation in the Paycheck Protection Program ("PPP"); Seacoast's ability to maintain adequate internal controls over financial reporting; potential claims, damages, penalties, fines and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions; the risks that deferred tax assets could be reduced if estimates of future taxable income from the Company's operations and tax planning strategies are less than currently estimated and sales of capital stock could trigger a reduction in the amount of net operating loss carryforwards that the Company may be able to utilize for income tax purposes; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, non-bank financial technology providers, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in the Company's market areas and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the Internet; the failure of assumptions underlying the establishment of reserves for possible credit losses; risks related to environmental, social and governance ("ESG") matters, the scope and pace of which could alter Seacoast's reputation and shareholder, associate, customer and third-party affiliations; the risks relating to bank acquisitions including the merger with Professional Holding Corp. including, without limitation: the diversion of management's time on issues related to the merger; unexpected transaction costs, including the costs of integrating operations; the risks that the businesses will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; the potential failure to fully or timely realize expected revenues and revenue synergies, including as the result of revenues following the mergers being lower than expected; the risk of deposit and customer attrition; regulatory enforcement and litigation risk; any changes in deposit mix; unexpected operating and other costs, which may differ or change from expectations; the risks of customer and employee loss and business disruptions, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures and solicitations of customers by competitors; as well as the difficulties and risks inherent with entering new markets; 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

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in the Company's annual report on Form 10-K for the year ended December 31, 2022 and quarterly report on Form 10-Q for the quarter ended June 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												Six Months Ended
(Amounts in thousands, except ratios and per share data)	2Q'23			1Q'23			4Q'22			3Q'22			2Q'22			2Q'23			2Q'22
Summary of Earnings
Net income	$	31,249		$	11,827		$	23,927		$	29,237		$	32,755		$	43,076		$	53,343
Adjusted net income¹		49,203			29,241			39,926			32,837			36,327			78,444			63,383
Net interest income²		127,153			131,351			119,858			88,399			81,764			258,504			158,403
Net interest margin^2,3		3.86	%		4.31	%		4.36	%		3.67	%		3.38	%		4.09	%		3.32	%
Pre-tax pre-provision earnings¹		40,864			46,321			45,999			43,143			42,580			87,185			75,675
Adjusted pre-tax pre-provision earnings¹		64,856			71,081			66,649			48,989			46,397			135,937			88,134
Performance Ratios
Return on average assets-GAAP basis³		0.84	%		0.34	%		0.78	%		1.10	%		1.21	%		0.60	%		1.00	%
Return on average tangible assets-GAAP basis^3,4		1.06			0.52			0.94			1.17			1.29			0.80			1.07
Adjusted return on average tangible assets^1,3,4		1.41			0.90			1.36			1.27			1.38			1.16			1.23
Pre-tax pre-provision return on average tangible assets^1,3,4		1.33			1.58			1.69			1.71			1.66			1.45			1.51
Adjusted pre-tax pre-provision return on average tangible assets^1,3,4		1.85			2.18			2.28			1.89			1.77			2.01			1.70
Net adjusted noninterest expense to average tangible assets^1,3,4		2.40			2.47			2.42			2.16			2.00			2.44			2.00
Return on average shareholders' equity-GAAP basis³		6.05			2.53			6.03			8.60			9.73			4.38			7.82
Return on average tangible common equity-GAAP basis^3,4		12.08			5.96			10.36			11.53			13.01			9.14			10.46
Adjusted return on average tangible common equity^1,3,4		16.08			10.34			15.05			12.48			13.97			13.32			11.95
Efficiency ratio⁵		67.34			65.43			63.39			57.13			56.22			66.37			59.17
Adjusted efficiency ratio¹		56.44			53.10			51.52			53.28			53.15			54.76			53.97
Noninterest income to total revenue (excluding securities gains/losses)		14.63			14.55			12.84			15.72			17.45			14.59			17.30
Tangible common equity to tangible assets⁴		8.53			8.36			9.08			9.79			9.74			8.53			9.74
Average loan-to-deposit ratio		83.48			82.43			77.67			73.90			70.60			82.98			70.92
End of period loan-to-deposit ratio		82.42			82.35			81.63			76.35			71.34			82.42			71.34
Per Share Data
Net income diluted-GAAP basis		$ 0.37			$ 0.15			$ 0.34			$ 0.47			$ 0.53			$ 0.52			$ 0.86
Net income basic-GAAP basis		0.37			0.15			0.34			0.48			0.53			0.52			0.87
Adjusted earnings¹		0.58			0.36			0.56			0.53			0.59			0.94			1.03
Book value per share common		24.14			24.24			22.45			20.95			21.65			24.14			21.65
Tangible book value per share		14.24			14.25			14.69			15.98			16.66			14.24			16.66
Cash dividends declared		0.18			0.17			0.17			0.17			0.17			0.35			0.30
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'23			1Q'23		4Q'22			3Q'22			2Q'22			2Q'23			2Q'22

Interest on securities:
Taxable	$	20,898		$	19,244	$	18,530		$	15,653		$	12,387		$	40,142		$	22,428
Nontaxable		97			105		130			138			138			202			278
Interest and fees on loans		148,265			135,168		105,322			73,970			69,307			283,433			136,425
Interest on federal funds sold and other investments		5,023			3,474		3,127			1,643			1,917			8,497			2,850
Total Interest Income		174,283			157,991		127,109			91,404			83,749			332,274			161,981

Interest on deposits		27,183			16,033		3,934			1,623			994			43,216			1,761
Interest on time certificates		14,477			5,552		1,358			380			436			20,029			904
Interest on borrowed money		5,660			5,254		2,108			1,117			672			10,914			1,147
Total Interest Expense		47,320			26,839		7,400			3,120			2,102			74,159			3,812

Net Interest Income		126,963			131,152		119,709			88,284			81,647			258,115			158,169
Provision for credit losses		(764	)		31,598		14,129			4,676			822			30,834			7,378
Net Interest Income After Provision for Credit Losses		127,727			99,554		105,580			83,608			80,825			227,281			150,791

Noninterest income:
Service charges on deposit accounts		4,560			4,242		3,996			3,504			3,408			8,802			6,209
Interchange income		5,066			4,694		4,650			4,138			4,255			9,760			8,383
Wealth management income		3,318			3,063		2,886			2,732			2,774			6,381			5,433
Mortgage banking fees		576			426		426			434			932			1,002			2,618
Insurance agency income		1,160			1,101		805			—			—			2,261			—
SBA gains		249			322		105			108			473			571			629
BOLI income		2,068			1,916		1,526			1,363			1,349			3,984			2,683
Other		4,755			6,574		3,239			4,186			4,073			11,329			7,134
		21,752			22,338		17,633			16,465			17,264			44,090			33,089
Securities (losses) gains, net		(176	)		107		18			(362	)		(300	)		(69	)		(752	)
Total Noninterest Income		21,576			22,445		17,651			16,103			16,964			44,021			32,337

Noninterest expenses:
Salaries and wages		45,155			47,616		45,405			28,420			28,056			92,771			56,275
Employee benefits		7,472			8,562		5,300			4,074			4,151			16,034			9,652
Outsourced data processing costs		20,222			14,553		9,918			5,393			6,043			34,775			12,199
Telephone / data lines		1,518			1,081		1,185			973			908			2,599			1,641
Occupancy		7,065			6,938		5,457			5,046			4,050			14,003			8,036
Furniture and equipment		2,345			2,267		1,944			1,462			1,588			4,612			3,014
Marketing		2,047			2,238		1,772			1,461			1,882			4,285			3,053
Legal and professional fees		4,062			7,479		9,174			3,794			2,946			11,541			7,735
FDIC assessments		2,116			1,443		889			760			699			3,559			1,488
Amortization of intangibles		7,654			6,727		4,763			1,446			1,446			14,381			2,892
Foreclosed property expense and net (gain) loss on sale		(57	)		195		(411	)		9			(968	)		138			(1,132	)
Provision for credit losses on unfunded commitments		—			1,239		—			1015			—			1,239			142
Other		8,266			7,137		6,114			7,506			5,347			15,403			10,070
Total Noninterest Expense		107,865			107,475		91,510			61,359			56,148			215,340			115,065

Income Before Income Taxes		41,438			14,524		31,721			38,352			41,641			55,962			68,063
Income taxes		10,189			2,697		7,794			9,115			8,886			12,886			14,720
Net Income	$	31,249		$	11,827	$	23,927		$	29,237		$	32,755		$	43,076		$	53,343

Per share of common stock:

Net income diluted	$	0.37		$	0.15	$	0.34		$	0.47		$	0.53		$	0.52		$	0.86
Net income basic		0.37			0.15		0.34			0.48			0.53			0.52			0.87
Cash dividends declared		0.18			0.17		0.17			0.17			0.17			0.35			0.30

Average diluted shares outstanding		85,536			80,717		71,374			61,961			61,923			83,260			61,818
Average basic shares outstanding		85,022			80,151		70,770			61,442			61,409			82,600			61,269

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)		2023			2023			2022			2022			2022
Assets
Cash and due from banks	$	164,193		$	180,607		$	120,748		$	176,463		$	363,343
Interest bearing deposits with other banks		563,690			610,636			81,192			42,152			538,025
Total Cash and Cash Equivalents		727,883			791,243			201,940			218,615			901,368

Time deposits with other banks		2,987			3,236			3,236			4,481			4,730

Debt Securities:
Available for sale (at fair value)		1,916,231			2,015,967			1,871,742			1,860,734			1,800,791
Held to maturity (at amortized cost)		707,812			737,911			747,408			774,706			794,785
Total Debt Securities		2,624,043			2,753,878			2,619,150			2,635,440			2,595,576

Loans held for sale		5,967			2,838			3,151			1,620			14,205

Loans		10,117,919			10,134,395			8,144,724			6,690,845			6,541,548
Less: Allowance for credit losses		(159,715	)		(155,640	)		(113,895	)		(95,329	)		(90,769	)
Net Loans		9,958,204			9,978,755			8,030,829			6,595,516			6,450,779

Bank premises and equipment, net		116,959			116,522			116,892			81,648			74,784
Other real estate owned		7,526			7,756			2,301			2,419			2,419
Goodwill		732,910			728,396			480,319			286,606			286,606
Other intangible assets, net		109,716			117,409			75,451			18,583			20,062
Bank owned life insurance		293,880			292,545			237,824			209,087			207,724
Net deferred tax assets		127,941			124,301			94,457			83,139			60,080
Other assets		333,916			338,529			280,212			208,081			193,371
Total Assets	$	15,041,932		$	15,255,408		$	12,145,762		$	10,345,235		$	10,811,704

Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest demand	$	4,139,052		$	4,554,509		$	4,070,973		$	3,529,489		$	3,593,201
Interest-bearing demand		2,816,656			2,676,320			2,337,590			2,170,251			2,269,148
Savings		824,255			940,702			1,064,392			938,081			946,738
Money market		2,859,164			2,893,128			1,985,974			1,700,737			1,911,847
Other time certificates		628,036			598,483			369,389			312,840			350,571
Brokered time certificates		591,503			371,392			3,798			—			—
Time certificates of more than $250,000		424,601			275,167			149,479			114,016			117,448
Total Deposits		12,283,267			12,309,701			9,981,595			8,765,414			9,188,953

Securities sold under agreements to repurchase		290,156			267,606			172,029			94,191			110,578
Federal Home Loan Bank borrowings		160,000			385,000			150,000			—			—
Subordinated debt, net		105,970			105,804			84,533			71,857			71,786
Other liabilities		148,507			136,213			149,830			125,971			110,812
Total Liabilities		12,987,900			13,204,324			10,537,987			9,057,433			9,482,129

Shareholders' Equity
Common stock		8,509			8,461			7,162			6,148			6,141
Additional paid in capital		1,809,431			1,803,898			1,377,802			1,068,241			1,065,167
Retained earnings		437,087			421,271			423,863			412,166			393,431
Treasury stock		(14,171	)		(13,113	)		(13,019	)		(11,539	)		(11,632	)
		2,240,856			2,220,517			1,795,808			1,475,016			1,453,107
Accumulated other comprehensive (loss) income, net		(186,824	)		(169,433	)		(188,033	)		(187,214	)		(123,532	)
Total Shareholders' Equity		2,054,032			2,051,084			1,607,775			1,287,802			1,329,575
Total Liabilities & Shareholders' Equity	$	15,041,932		$	15,255,408		$	12,145,762		$	10,345,235		$	10,811,704

Common shares outstanding		85,086			84,609			71,618			61,476			61,410

CONSOLIDATED QUARTERLY FINANCIAL DATA				(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

(Amounts in thousands)	2Q'23			1Q'23			4Q'22			3Q'22			2Q'22
Credit Analysis
Net charge-offs (recoveries)	$	705		$	3,188		$	782		$	103		$	(124	)
Net charge-offs (recoveries) to average loans		0.03	%		0.14	%		0.04	%		0.01	%		—	%
Allowance for credit losses		159,715			155,640			113,895			95,329			90,769

Non-acquired loans at end of period		6,264,044			6,048,453			5,944,194			5,653,357

SEACOAST REPORTS SECOND QUARTER 2023 RESULTS