Strong Growth in Loans and Deposits

Annualized 20% Increase in Tangible Book Value Per Share

Well-Positioned Balance Sheet with Strong Capital and Liquidity

STUART, Fla., Oct. 24, 2024 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ:SBCF) today reported net income in the third quarter of 2024 of $30.7 million, or $0.36 per diluted share, compared to $30.2 million, or $0.36 per diluted share in the second quarter of 2024 and $31.4 million, or $0.37 per diluted share in the third quarter of 2023.

Pre-tax pre-provision earnings¹ were $46.1 million in the third quarter of 2024, an increase of 3% compared to the second quarter of 2024 and an increase of 6% compared to the third quarter of 2023. Adjusted pre-tax pre-provision earnings¹ were $46.4 million in the third quarter of 2024, an increase of 4% compared to the second quarter of 2024 and a decrease of 2% compared to the third quarter of 2023.

For the third quarter of 2024, return on average tangible assets was 0.99% and return on average tangible shareholders' equity was 10.31%, compared to 1.00% and 10.75%, respectively, in the prior quarter, and 1.04% and 11.90%, respectively, in the prior year quarter.

Charles M. Shaffer, Chairman and CEO of Seacoast, stated, "I would like to thank all of the Seacoast associates for their unwavering dedication during the challenging impact of back-to-back significant hurricanes. Your commitment to our customers and the well-being of our communities is commendable. I am very proud to serve alongside such an amazing and dedicated group of bankers. Furthermore, our hearts and sympathy go out to all those in our communities who lost loved ones and experienced catastrophic outcomes as a result of the storms."

Shaffer added, "Turning to third quarter results, this marks the turn in organic growth we had anticipated, with nearly 7% annualized loan growth and 7% annualized customer deposit growth, clearly showcasing the results of our previous investments in banking teams across the state. Additionally, this quarter demonstrated continued growth in net interest income, noninterest income and, when removing accretion on acquired loans, expansion in the net interest margin. Our competitive transformation is taking shape as we build Seacoast into Florida's leading regional bank. We expect to continue to see positive results from recent talent acquisitions, which will drive further organic growth in the coming periods."

Shaffer concluded, "We remain committed to a disciplined approach to credit, and our balance sheet is one of the strongest in the industry, with a Tier 1 capital ratio of 14.8%² as of September 30, 2024. The ratio of tangible common equity to tangible assets has increased to a strong 9.64%. Our liquidity position is also robust, with a loan-to-deposit ratio of 83%, providing us with balance sheet flexibility as we continue to work towards stronger earnings in the coming periods."

Update on Hurricane Recovery

In late September and early October 2024, communities across our corporate footprint were impacted by Hurricanes Helene and Milton. We maintained uninterrupted digital and telephone access for our customers and, having experienced minimal impacts to our branch properties, we fully reopened to serve our communities shortly after each storm passed. Recovery efforts in many areas continue and the full impacts on people and businesses in the most hard-hit regions are not fully known. We do not expect a significant impact from Hurricane Helene, but an additional provision for credit losses may be warranted in the fourth quarter of 2024 for Hurricane Milton, in a range between approximately $5 million and $10 million.

Financial Results

Income Statement

Net income in the third quarter of 2024 was $30.7 million, or $0.36 per diluted share, compared to $30.2 million, or $0.36 per diluted share in the prior quarter and $31.4 million, or $0.37 per diluted share in the prior year quarter. For the nine months ended September 30, 2024, net income was $86.9 million, or $1.02 per diluted share, compared to $74.5 million, or $0.89 per diluted share, for the nine months ended September 30, 2023. Adjusted net income¹ for the third quarter of 2024 was $30.5 million, or $0.36 per diluted share, compared to $30.3 million, or $0.36 per diluted share, for the prior quarter, and $34.2 million, or $0.40 per diluted share, for the prior year quarter. For the nine months ended September 30, 2024, adjusted net income¹ was $91.9 million, or $1.08 per diluted share, compared to $101.9 million, or $1.21 per diluted share, for the nine months ended September 30, 2023.
Net revenues were $130.3 million in the third quarter of 2024, an increase of $3.7 million, or 3%, compared to the prior quarter, and a decrease of $6.8 million, or 5%, compared to the prior year quarter. For the nine months ended September 30, 2024, net revenues were $382.5 million, a decrease of $56.7 million, or 13%, compared to the nine months ended September 30, 2023. Adjusted net revenues¹ were $130.5 million in the third quarter of 2024, an increase of $3.6 million, or 3%, compared to the prior quarter, and a decrease of $7.2 million, or 5%, compared to the prior year quarter. For the nine months ended September 30, 2024, adjusted net revenues¹ were $382.9 million, a decrease of $55.2 million, or 13%, compared to the nine months ended September 30, 2023.
Pre-tax pre-provision earnings¹ were $46.1 million in the third quarter of 2024, an increase of $1.5 million, or 3%, compared to the second quarter of 2024 and an increase of $2.7 million, or 6%, compared to the third quarter of 2023. For the nine months ended September 30, 2024, pre-tax pre-provision earnings¹ were $126.3 million, a decrease of $5.5 million, or 4%, compared to the nine months ended September 30, 2023. Adjusted pre-tax pre-provision earnings¹ were $46.4 million in the third quarter of 2024, an increase of $1.9 million, or 4%, compared to the second quarter of 2024 and a decrease of $1.0 million, or 2%, compared to the third quarter of 2023. For the nine months ended September 30, 2024, adjusted pre-tax pre-provision earnings¹ were $133.4 million, a decrease of $35.5 million, or 21%, compared to the nine months ended September 30, 2023.
Net interest income totaled $106.7 million in the third quarter of 2024, an increase of $2.2 million, or 2%, compared to the prior quarter, and a decrease of $12.6 million, or 11%, compared to the prior year quarter. For the nine months ended September 30, 2024, net interest income was $316.2 million, a decrease of $61.3 million, or 16%, compared to the nine months ended September 30, 2023. In the loan portfolio, higher interest income from new loan production was partially offset by lower accretion of purchase discount on acquired loans. Included in loan interest income was accretion on acquired loans of $9.2 million in the third quarter of 2024, $10.2 million in the second quarter of 2024, and $14.8 million in the third quarter of 2023. For the nine months ended September 30, 2024, accretion on acquired loans totaled $30.0 million, compared to $45.4 million for the nine months ended September 30, 2023. Recent purchases in the securities portfolio contributed to higher securities yields. Higher interest expense on deposits reflects the impact of higher rates, with cuts to the federal funds rate late in the quarter not yet fully impacting the third quarter 2024 results.
Net interest margin decreased one basis point to 3.17% in the third quarter of 2024 compared to 3.18% in the second quarter of 2024. Excluding the effects of accretion on acquired loans, net interest margin increased three basis points to 2.90% in the third quarter of 2024 compared to 2.87% in the second quarter of 2024. Loan yields were 5.94%, an increase of one basis point from the prior quarter. Securities yields increased six basis points to 3.75%, compared to 3.69% in the prior quarter. The cost of deposits increased three basis points from 2.31% in the prior quarter, to 2.34% in the third quarter of 2024. We expect the cost of deposits to decline in the fourth quarter of 2024.
Noninterest income totaled $23.7 million in the third quarter of 2024, an increase of $1.5 million, or 7%, compared to the prior quarter, and an increase of $5.9 million, or 33%, compared to the prior year quarter. For the nine months ended September 30, 2024, noninterest income totaled $66.4 million, an increase of $4.5 million, or 7%, compared to the nine months ended September 30, 2023. Results in the third quarter of 2024 included:
- Service charges on deposits totaled $5.4 million, an increase of $0.1 million, or 1%, from the prior quarter and an increase of $0.8 million, or 16%, from the prior year quarter. Our investments in talent and significant market expansion across the state have resulted in continued growth in treasury management services to commercial customers.
- Wealth management income totaled $3.8 million, an increase of $0.1 million, or 2%, from the prior quarter and an increase of $0.7 million, or 22%, from the prior year quarter. The wealth management division continues to grow and add new relationships, with assets under management increasing 26% year over year to $2.0 billion at September 30, 2024.
- Insurance agency income totaled $1.4 million, an increase of 3% from the prior quarter and an increase of 18% from the prior year quarter, reflecting continued growth and expansion of services.
- SBA gains totaled $0.4 million, a decrease of $0.3 million, or 44%, from the prior quarter and a decrease of $0.2 million, or 36%, from the prior year quarter, due to lower saleable originations.
- Other income totaled $7.5 million, an increase of $1.5 million, or 26%, from the prior quarter and an increase of $3.2 million, or 74% from the prior year quarter. Increases in the third quarter of 2024 include gains on SBIC investments and higher swap-related fees.
The provision for credit losses was $6.3 million in the third quarter of 2024, compared to $4.9 million in the second quarter of 2024 and $2.7 million in the third quarter of 2023.
Noninterest expense was $84.8 million in the third quarter of 2024, an increase of $2.3 million, or 3%, compared to the prior quarter, and a decrease of $9.1 million, or 10%, compared to the prior year quarter. Noninterest expense for the nine months ended September 30, 2024, totaled $257.7 million, a decrease of $51.5 million, or 17%, compared to the nine months ended September 30, 2023. With significant cost-saving initiatives now complete, Seacoast has prudently managed expenses while strategically investing to support continued growth. Results in the third quarter of 2024 included:
- Salaries and wages totaled $40.7 million, an increase of $1.8 million, or 5%, compared to the prior quarter and a decrease $5.7 million, or 12%, from the prior year quarter. The third quarter of 2024 reflects continued additions to the banking team as the Company focuses on organic growth.
- Outsourced data processing costs totaled $8.0 million, a decrease of $0.2 million, or 3%, compared to the prior quarter and a decrease of $0.7 million, or 8%, from the prior year quarter, reflecting the benefit of lower negotiated rates with key service providers.
- Marketing expenses totaled $2.7 million, a decrease of $0.5 million, or 16%, compared to the prior quarter and an increase of $0.9 million, or 45%, from the prior year quarter, primarily associated with the timing of various campaigns. We will continue to invest in marketing and branding supporting customer growth.
- Legal and professional fees totaled $2.7 million, an increase of $0.7 million, or 37%, compared to the prior quarter and an increase of $29 thousand, or 1%, from the prior year quarter. Professional services engaged in connection with contract negotiations contributed to the increase in the third quarter of 2024.
Seacoast recorded $8.6 million of income tax expense in the third quarter of 2024, compared to $8.9 million in the second quarter of 2024, and $9.1 million in the third quarter of 2023. Tax benefits related to stock-based compensation totaled $0.1 million in the third quarter of 2024, compared to tax expense of $0.2 million in the second quarter of 2024 and a nominal tax benefit in the third quarter of 2023.
The efficiency ratio was 59.84% in the third quarter of 2024, compared to 60.21% in the second quarter of 2024 and 62.60% in the prior year quarter. The adjusted efficiency ratio¹ was 59.84% in the third quarter of 2024, compared to 60.21% in the second quarter of 2024 and 60.19% in the prior year quarter. The Company continues to remain keenly focused on disciplined expense control, while making investments for growth.

Balance Sheet

At September 30, 2024, the Company had total assets of $15.2 billion and total shareholders' equity of $2.2 billion. Book value per share was $25.68 as of September 30, 2024, compared to $24.98 as of June 30, 2024, and $24.06 as of September 30, 2023. Tangible book value per share increased 20% annualized from the prior quarter to $16.20 as of September 30, 2024, compared to $15.41 as of June 30, 2024, and $14.26 as of September 30, 2023.
Debt securities totaled $2.8 billion as of September 30, 2024, an increase of $180.8 million compared to June 30, 2024. Debt securities include approximately $2.2 billion in securities classified as available for sale and recorded at fair value.
- During the third quarter of 2024, net unrealized losses associated with available for sale securities declined by $59.6 million due to changes in the interest rate environment. This contributed $0.53 to the increase in tangible book value per share during the quarter. The unrealized loss on available for sale securities is fully reflected in the value presented on the balance sheet.
- The portfolio also includes $646.1 million in securities classified as held to maturity with a fair value of $538.5 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.
- In October, we took advantage of favorable market conditions and repositioned a portion of the available for sale securities portfolio. We sold securities with an average book yield of 2.8%, resulting in a pre-tax loss of approximately $8.0 million impacting fourth quarter results. The proceeds, approximately $113 million, were reinvested in agency mortgage-backed securities with an average book yield of 5.4%, for an estimated earnback of less than three years.
Loans increased $166.8 million, or 6.6% annualized, totaling $10.2 billion as of September 30, 2024. Loan originations increased 22% to $657.9 million in the third quarter of 2024, compared to $538.0 million in the second quarter of 2024. The Company continues to exercise a disciplined approach to lending and is benefiting from the investments made in recent years to attract talent from large regional banks across its markets. This talent is onboarding significant new relationships, resulting in increased loan production.
Loan pipelines (loans in underwriting and approval or approved and not yet closed) totaled $831.1 million as of September 30, 2024, compared to $834.4 million at June 30, 2024 and $353.0 million at September 30, 2023.
- Commercial pipelines were $744.5 million as of September 30, 2024, compared to $743.8 million at June 30, 2024, and $259.4 million at September 30, 2023.
- SBA pipelines were $28.9 million as of September 30, 2024, compared to $29.3 million at June 30, 2024, and $41.4 million at September 30, 2023.
- Residential saleable pipelines were $11.2 million as of September 30, 2024, compared to $12.1 million at June 30, 2024, and $6.8 million at September 30, 2023. Retained residential pipelines were $21.9 million as of September 30, 2024, compared to $24.7 million at June 30, 2024, and $20.9 million at September 30, 2023.
- Consumer pipelines were $24.4 million as of September 30, 2024, compared to $24.5 million at both June 30, 2024 and September 30, 2023.
Total deposits were $12.2 billion as of September 30, 2024, an increase of $127.5 million, or 4.2% annualized, when compared to June 30, 2024. Excluding brokered balances, total deposits increased $195.9 million, or 6.6% annualized, in the third quarter of 2024.
- Commercial deposits increased $133.0 million, or 2%, compared to the prior quarter. Of note, commercial noninterest bearing deposits increased $67.2 million, or 3%, from the prior quarter, the result of onboarding new clients.
- Total noninterest bearing deposits increased $45.5 million, or 5.3% annualized, from the prior quarter.
- At September 30, 2024, customer transaction account balances represented 49% of total deposits.
- The Company benefits from a granular deposit franchise, with the top ten depositors representing approximately 3% of total deposits.
- Average deposits per banking center were $159 million at September 30, 2024, compared to $157 million at June 30, 2024.
- Uninsured deposits represented only 36% of overall deposit accounts as of September 30, 2024. 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 31% 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 167% of uninsured and uncollateralized deposits.
- Consumer deposits represent 43% of overall deposit funding with an average consumer customer balance of $26 thousand. Commercial deposits represent 57% of overall deposit funding with an average business customer balance of $117 thousand.
Federal Home Loan Bank advances totaled $245.0 million at September 30, 2024 with a weighted average interest rate of 4.19%.

Asset Quality

Nonperforming loans were $80.9 million at September 30, 2024, compared to $59.9 million at June 30, 2024, and $41.5 million at September 30, 2023. New nonperforming loans in the third quarter of 2024 have collateral values well in excess of balances outstanding, and therefore, no loss is expected. Nonperforming loans to total loans outstanding were 0.79% at September 30, 2024, 0.60% at June 30, 2024, and 0.41% at September 30, 2023.
Accruing past due loans were $50.7 million, or 0.50% of total loans, at September 30, 2024, compared to $39.6 million, or 0.39% of total loans, at June 30, 2024, and $35.5 million, or 0.33% of total loans, at September 30, 2023. A limited number of larger-balance residential mortgage loans, which returned to current status in October, comprise the majority of the increase from the prior quarter.
Nonperforming assets to total assets were 0.58% at September 30, 2024, compared to 0.45% at June 30, 2024, and 0.33% at September 30, 2023.
The ratio of allowance for credit losses to total loans was 1.38% at September 30, 2024, 1.41% at June 30, 2024, and 1.49% at September 30, 2023.
Net charge-offs were $7.4 million in the third quarter of 2024, compared to $9.9 million in the second quarter of 2024 and $12.7 million in the third quarter of 2023. Charge-offs during the quarter primarily reflect specifically identified reserves previously established in the allowance for credit losses.
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 $360 thousand, and the average commercial loan size is $789 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 36% and 241% of total bank-level risk-based capital², respectively, compared to 36% and 235%, respectively, at June 30, 2024. On a consolidated basis, construction and land development and commercial real estate loans represent 34% and 227%, respectively, of total consolidated risk-based capital².

Capital and Liquidity

The Company continues to operate with a fortress balance sheet with a Tier 1 capital ratio at September 30, 2024 of 14.8%² compared to 14.8% at June 30, 2024, and 14.0% at September 30, 2023. The Total capital ratio was 16.2%², the Common Equity Tier 1 capital ratio was 14.1%², and the Tier 1 leverage ratio was 11.2%² at September 30, 2024. The Company is considered "well capitalized" based on applicable U.S. regulatory capital ratio requirements.
Cash and cash equivalents at September 30, 2024 totaled $637.1 million.
The Company's loan to deposit ratio was 83.4% at September 30, 2024, which should provide liquidity and flexibility moving forward.
Tangible common equity to tangible assets was 9.64% at September 30, 2024, compared to 9.30% at June 30, 2024, and 8.68% at September 30, 2023. If all held-to-maturity securities were adjusted to fair value, the tangible common equity ratio would have been 9.11% at September 30, 2024.
At September 30, 2024, in addition to $637.1 million in cash, the Company had $5.6 billion in available borrowing capacity, including $4.1 billion in available collateralized lines of credit, $1.2 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 September 30, 2024, represented 167% of uninsured and uncollateralized deposits.

¹_{Non-GAAP measure, see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.}²_Estimated.

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

	3Q'24			2Q'24			1Q'24			4Q'23			3Q'23
Selected balance sheet data:
Gross loans	$	10,205,281		$	10,038,508		$	9,978,052		$	10,062,940		$	10,011,186
Total deposits		12,243,585			12,116,118			12,015,840			11,776,935			12,107,834
Total assets		15,168,371			14,952,613			14,830,015			14,580,249			14,823,007

Performance measures:
Net income	$	30,651		$	30,244		$	26,006		$	29,543		$	31,414
Net interest margin		3.17	%		3.18	%		3.24	%		3.36	%		3.57	%
Pre-tax pre-provision earnings¹	$	46,086		$	44,555		$	35,674		$	42,006		$	43,383
Average diluted shares outstanding		85,069			84,816			85,270			85,336			85,666
Diluted earnings per share (EPS)		0.36			0.36			0.31			0.35			0.37
Return on (annualized):
Average assets (ROA)		0.81	%		0.82	%		0.71	%		0.80	%		0.84	%
Average tangible assets (ROTA)²		0.99			1.00			0.89			0.99			1.04
Average tangible common equity (ROTCE)²		10.31			10.75			9.55			11.22			11.90
Tangible common equity to tangible assets²		9.64			9.30			9.25			9.31			8.68
Tangible book value per share²	$	16.20		$	15.41		$	15.26		$	15.08		$	14.26
Efficiency ratio		59.84	%		60.21	%		66.78	%		60.32	%		62.60	%

Adjusted operating measures¹:
Adjusted net income⁴	$	30,511		$	30,277		$	31,132		$	31,363		$	34,170
Adjusted pre-tax pre-provision earnings⁴		46,390			44,490			42,513			45,016			47,349
Adjusted diluted EPS⁴		0.36			0.36			0.37			0.37			0.40
Adjusted ROTA²		0.98	%		1.00	%		1.04	%		1.04	%		1.12	%
Adjusted ROTCE²		10.27			10.76			11.15			11.80			12.79
Adjusted efficiency ratio		59.84			60.21			61.13			60.32			60.19
Net adjusted noninterest expense as a percent of average tangible assets²		2.19	%		2.19	%		2.23	%		2.25	%		2.34	%

Other data:
Market capitalization³	$	2,277,003		$	2,016,472		$	2,156,529		$	2,415,158		$	1,869,891
Full-time equivalent employees		1,493			1,449			1,445			1,541			1,570
Number of ATMs		96			95			95			96			97
Full-service banking offices		77			77			77			77			77
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.
⁴As of 1Q'24, amortization of intangibles is excluded from adjustments to noninterest expense; prior periods have been updated to reflect the change.

OTHER INFORMATION

Conference Call Information

Seacoast will host a conference call October 25, 2024, at 10:00 a.m. (Eastern Time) to discuss the third quarter of 2024 earnings results and business trends. Investors may call in (toll-free) by dialing (800) 715-9871 (Conference ID: 6787376). 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 $15.2 billion in assets and $12.2 billion in deposits as of September 30, 2024. 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.

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, 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, including those highlighted by high-profile bank failures, and including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto (including increases in the cost of our deposit insurance assessments), the Company's ability to effectively manage its liquidity risk and any growth plans, and the availability of capital and funding; 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 proposed overdraft and late fee caps, 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 impacts of interest rates on macroeconomic conditions, customer and client behavior, and on our 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 and the risk that the regulatory environment may not be conducive to or may prohibit or delay the consummation of future mergers and/or business combinations, may increase the length of time and amount of resources required to consummate such transactions, and may reduce the anticipated benefit; 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 which may be exacerbated by developments in generative artificial intelligence; fraud or misconduct by internal or external parties, 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; 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, 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 and/or increase costs, including, but not limited to, property and casualty and other insurance costs; Seacoast's ability to maintain adequate internal controls over financial reporting; potential claims, damages, penalties, fines, costs 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, the results of tax audit findings, challenges to our tax positions, or adverse changes or interpretations of tax laws; 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; the failure of assumptions underlying the establishment of reserves for expected credit losses; risks related to, and the costs associated with, environmental, social and governance matters, including the scope and pace of related rulemaking activity and disclosure requirements; 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 the federal budget and economic policy; the risk that balance sheet, revenue growth, and loan growth expectations may differ from actual results; 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, 2023 and in other periodic reports that the Company files with the SEC. 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									Nine Months Ended
(Amounts in thousands, except ratios and per share data)	3Q'24			2Q'24			1Q'24			4Q'23			3Q'23			3Q'24			3Q'23
Summary of Earnings
Net income	$	30,651		$	30,244		$	26,006		$	29,543		$	31,414		$	86,901		$	74,490
Adjusted net income^1,6		30,511			30,277			31,132			31,363			34,170			91,920			101,878
Net interest income²		106,975			104,657			105,298			111,035			119,505			316,930			378,009
Net interest margin^2,3		3.17	%		3.18	%		3.24	%		3.36	%		3.57	%		3.19	%		3.91	%
Pre-tax pre-provision earnings¹		46,086			44,555			35,674			42,006			43,383			126,315			131,807
Adjusted pre-tax pre-provision earnings^1,6		46,390			44,490			42,513			45,016			47,349			133,393			168,905

Performance Ratios
Return on average assets-GAAP basis³		0.81	%		0.82	%		0.71	%		0.80	%		0.84	%		0.78	%		0.68	%
Return on average tangible assets-GAAP basis^3,4		0.99			1.00			0.89			0.99			1.04			0.96			0.88
Adjusted return on average tangible assets^1,3,4		0.98			1.00			1.04			1.04			1.12			1.01			1.15
Pre-tax pre-provision return on average tangible assets^1,3,4,6		1.46			1.45			1.22			1.39			1.43			1.38			1.49
Adjusted pre-tax pre-provision return on average tangible assets^1,3,4		1.47			1.45			1.42			1.48			1.55			1.44			1.85
Net adjusted noninterest expense to average tangible assets^1,3,4		2.19			2.19			2.23			2.25			2.34			2.20			2.40
Return on average shareholders' equity-GAAP basis³		5.62			5.74			4.94			5.69			6.01			5.44			4.94
Return on average tangible common equity-GAAP basis^3,4		10.31			10.75			9.55			11.22			11.90			10.21			10.09
Adjusted return on average tangible common equity^1,3,4		10.27			10.76			11.15			11.80			12.79			10.72			13.14
Efficiency ratio⁵		59.84			60.21			66.78			60.32			62.60			62.24			65.19
Adjusted efficiency ratio¹		59.84			60.21			61.13			60.32			60.19			60.39			56.47
Noninterest income to total revenue (excluding securities gains/losses)		18.05			17.55			16.17			15.14			13.22			17.27			14.16
Tangible common equity to tangible assets⁴		9.64			9.30			9.25			9.31			8.68			9.64			8.68
Average loan-to-deposit ratio		83.79			83.11			84.50			83.38			82.63			83.80			82.86
End of period loan-to-deposit ratio		83.44			82.90			83.12			85.48			82.71			83.44			82.71

Per Share Data
Net income diluted-GAAP basis	$	0.36		$	0.36		$	0.31		$	0.35		$	0.37		$	1.02		$	0.89
Net income basic-GAAP basis		0.36			0.36			0.31			0.35			0.37			1.03			0.89
Adjusted earnings^1,6		0.36			0.36			0.37			0.37			0.40			1.08			1.21

Book value per share common		25.68			24.98			24.93			24.84			24.06			25.68			24.06
Tangible book value per share		16.20			15.41			15.26			15.08			14.26			16.20			14.26
Cash dividends declared		0.18			0.18			0.18			0.18			0.18			0.54			0.53
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). ⁶As of 1Q'24, amortization of intangibles is excluded from adjustments to noninterest expense; prior periods have been updated to reflect the change.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME						(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	Quarterly Trends														Nine Months Ended
(Amounts in thousands, except per share data)	3Q'24		2Q'24			1Q'24			4Q'23			3Q'23			3Q'24		3Q'23

Interest on securities:
Taxable	$	25,963	$	24,155		$	22,393		$	21,383		$	21,401		$	72,511	$	61,543
Nontaxable		34		33			34			55			97			101		299
Interest and fees on loans		150,980		147,292			147,095			147,801			149,871			445,367		433,304
Interest on interest bearing deposits and other investments		7,138		8,328			6,184			7,616			8,477			21,650		16,974
Total Interest Income		184,115		179,808			175,706			176,855			179,846			539,629		512,120

Interest on deposits		51,963		51,319			47,534			44,923			38,396			150,816		81,612
Interest on time certificates		19,002		17,928			17,121			15,764			16,461			54,051		36,490
Interest on borrowed money		6,485		6,137			5,973			5,349			5,683			18,595		16,597
Total Interest Expense		77,450		75,384			70,628			66,036			60,540			223,462		134,699

Net Interest Income		106,665		104,424			105,078			110,819			119,306			316,167		377,421
Provision for credit losses		6,273		4,918			1,368			3,990			2,694			12,559		33,528
Net Interest Income After Provision for Credit Losses		100,392		99,506			103,710			106,829			116,612			303,608		343,893

Noninterest income:
Service charges on deposit accounts		5,412		5,342			4,960			4,828			4,648			15,714		13,450
Interchange income		1,911		1,940			1,888			2,433			1,684			5,739		11,444
Wealth management income		3,843		3,766			3,540			3,261			3,138			11,149		9,519
Mortgage banking fees		485		582			381			378			410			1,448		1,412
Insurance agency income		1,399		1,355			1,291			1,066			1,183			4,045		3,444
SBA gains		391		694			739			921			613			1,824		1,184
BOLI income		2,578		2,596			2,264			2,220			2,197			7,438		6,181
Other		7,473		5,953			5,205			4,668			4,307			18,631		15,636
		23,492		22,228			20,268			19,775			18,180			65,988		62,270
Securities gains (losses), net		187		(44	)		229			(2,437	)		(387	)		372		(456	)
Total Noninterest Income		23,679		22,184			20,497			17,338			17,793			66,360		61,814

Noninterest expense:
Salaries and wages		40,697		38,937			40,304			38,435			46,431			119,938		139,202
Employee benefits		6,955		6,861			7,889			6,678			7,206			21,705		23,240
Outsourced data processing costs		8,003		8,210			12,118			8,609			8,714			28,331		43,489
Occupancy		7,096		7,180			8,037			7,512			7,758			22,313		24,360
Furniture and equipment		2,060		1,956			2,011			2,028			2,052			6,027		6,664
Marketing		2,729		3,266			2,655			2,995			1,876			8,650		6,161
Legal and professional fees		2,708		1,982			2,151			3,294			2,679			6,841		14,220
FDIC assessments		1,882		2,131			2,158			2,813			2,258			6,171		5,817
Amortization of intangibles		6,002		6,003			6,292			6,888			7,457			18,297		21,838
Other real estate owned expense and net loss (gain) on sale		491		(109	)		(26	)		573			274			356		412
Provision for credit losses on unfunded commitments		250		251			250			—			—			751		1,239
Other		5,945		5,869			6,532			6,542			7,210			18,346		22,613
Total Noninterest Expense		84,818		82,537			90,371			86,367			93,915			257,726		309,255

Income Before Income Taxes		39,253		39,153			33,836			37,800			40,490			112,242		96,452
Provision for income taxes		8,602		8,909			7,830			8,257			9,076			25,341		21,962
Net Income	$	30,651	$	30,244		$	26,006		$	29,543		$	31,414		$	86,901	$	74,490

Share Data
Net income per share of common stock
Diluted	$	0.36	$	0.36		$	0.31		$	0.35		$	0.37		$	1.02	$	0.89
Basic		0.36		0.36			0.31			0.35			0.37			1.03		0.89
Cash dividends declared		0.18		0.18			0.18			0.18			0.18			0.54		0.53

Average common shares outstanding
Diluted		85,069		84,816			85,270			85,336			85,666			84,915		83,993
Basic		84,434		84,341			84,908			84,817			85,142			84,319		83,457

CONDENSED CONSOLIDATED BALANCE SHEETS							(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	September 30,			June 30,			March 31,			December 31,			September 30,
(Amounts in thousands)	2024			2024			2024			2023			2023
Assets
Cash and due from banks	$	182,743		$	168,738		$	137,850		$	167,511		$	182,036
Interest bearing deposits with other banks		454,315			580,787			544,874			279,671			513,946
Total cash and cash equivalents		637,058			749,525			682,724			447,182			695,982

Time deposits with other banks		5,207			7,856			7,856			5,857			4,357

Debt Securities:
Securities available for sale (at fair value)		2,160,055			1,967,204			1,949,463			1,836,020			1,841,845
Securities held to maturity (at amortized cost)		646,050			658,055			669,896			680,313			691,404
Total debt securities		2,806,105			2,625,259			2,619,359			2,516,333			2,533,249

Loans held for sale		11,039			5,975			9,475			4,391			2,979

Loans		10,205,281			10,038,508			9,978,052			10,062,940			10,011,186
Less: Allowance for credit losses		(140,469	)		(141,641	)		(146,669	)		(148,931	)		(149,661	)
Loans, net of allowance for credit losses		10,064,812			9,896,867			9,831,383			9,914,009			9,861,525

Bank premises and equipment, net		108,776			109,945			110,787			113,304			115,749
Other real estate owned		6,421			6,877			7,315			7,560			7,216
Goodwill		732,417			732,417			732,417			732,417			731,970
Other intangible assets, net		77,431			83,445			89,377			95,645			102,397
Bank owned life insurance		306,379			303,816			301,229			298,974			296,763
Net deferred tax assets		94,820			108,852			111,539			113,232			131,602
Other assets		317,906			321,779			326,554			331,345			339,218
Total Assets	$	15,168,371		$	14,952,613		$	14,830,015		$	14,580,249		$	14,823,007

Liabilities
Deposits
Noninterest demand	$	3,443,455		$	3,397,918		$	3,555,401		$	3,544,981		$	3,868,132
Interest-bearing demand		2,487,448			2,821,092			2,711,041			2,790,210			2,800,152
Savings		524,474			566,052			608,088			651,454			721,558
Money market		4,034,371			3,707,761			3,531,029			3,314,288			3,143,897
Time deposits		1,753,837			1,623,295			1,610,281			1,476,002			1,574,095
Total Deposits		12,243,585			12,116,118			12,015,840			11,776,935			12,107,834

Securities sold under agreements to repurchase		210,176			262,103			326,732			374,573			276,450
Federal Home Loan Bank borrowings		245,000			180,000			110,000			50,000			110,000
Long-term debt, net		106,800			106,634			106,468			106,302			106,136
Other liabilities		168,960			157,377			153,225			164,353			174,193
Total Liabilities		12,974,521			12,822,232			12,712,265			12,472,163			12,774,613

Shareholders' Equity
Common stock		8,614			8,530			8,494			8,486			8,515
Additional paid in capital		1,821,050			1,815,800			1,811,941			1,808,883			1,813,068
Retained earnings		508,036			492,805			478,017			467,305			453,117
Less: Treasury stock		(18,680	)		(18,744	)		(16,746	)		(16,710	)		(14,035	)
		2,319,020			2,298,391			2,281,706			2,267,964			2,260,665
Accumulated other comprehensive loss, net		(125,170	)		(168,010	)		(163,956	)		(159,878	)		(212,271	)
Total Shareholders' Equity		2,193,850			2,130,381			2,117,750			2,108,086			2,048,394
Total Liabilities & Shareholders' Equity	$	15,168,371		$	14,952,613		$	14,830,015		$	14,580,249		$	14,823,007

Common shares outstanding		85,441			85,299			84,935			84,861			85,150

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

(Amounts in thousands)	3Q'24			2Q'24			1Q'24			4Q'23			3Q'23
Credit Analysis
Net charge-offs	$	7,445		$	9,946		$	3,630		$	4,720		$	12,748
Net charge-offs to average loans		0.29	%		0.40	%		0.15	%		0.19	%		0.50	%

Allowance for credit losses	$	140,469		$	141,641		$	146,669		$	148,931		$	149,661

Non-acquired loans at end of period	$	7,178,186		$	6,834,059		$	6,613,763		$	6,571,454		$	6,343,121
Acquired loans at end of period		3,027,095			3,204,449			3,364,289			3,491,486			3,668,065
Total Loans	$	10,205,281		$	10,038,508		$	9,978,052		$	10,062,940		$	10,011,186

Total allowance for credit losses to total loans at end of period		1.38	%		1.41	%		1.47	%		1.48	%		1.49	%
Purchase discount on acquired loans at end of period		4.48			4.51			4.63			4.75			4.86

End of Period
Nonperforming loans	$	80,857		$	59,927		$	77,205		$	65,104		$	41,508
Other real estate owned		933			1,173			309			221			221
Properties previously used in bank operations included in other real estate owned		5,488			5,704			7,006			7,339			6,995
Total Nonperforming Assets	$	87,278		$	66,804		$	84,520		$	72,664		$	48,724

Nonperforming Loans to Loans at End of Period		0.79	%		0.60	%		0.77	%		0.65	%		0.41	%

Nonperforming Assets to Total Assets at End of Period		0.58			0.45			0.57			0.50			0.33

	September 30,			June 30,			March 31,			December 31,			September 30,
Loans	2024			2024			2024			2023			2023
Construction and land development	$	595,753		$	593,534		$	623,246		$	767,622		$	793,736
Commercial real estate - owner occupied		1,676,814			1,656,391			1,656,131			1,670,281			1,675,881
Commercial real estate - non-owner occupied		3,573,076			3,423,266			3,368,339			3,319,890			3,285,974
Residential real estate		2,564,903			2,555,320			2,521,399			2,445,692			2,418,903
Commercial and financial		1,575,228			1,582,290			1,566,198			1,607,888			1,588,152
Consumer		219,507			227,707			242,739			251,567			248,540
Total Loans	$	10,205,281		$	10,038,508		$	9,978,052		$	10,062,940		$	10,011,186

AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES¹								(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


	3Q'24							2Q'24							3Q'23
	Average					Yield/		Average					Yield/		Average					Yield/
(Amounts in thousands)	Balance			Interest		Rate		Balance			Interest		Rate		Balance			Interest		Rate

Assets
Earning assets:
Securities:
Taxable	$	2,756,502		$	25,963	3.75	%	$	2,629,716		$	24,155	3.69	%	$	2,575,002		$	21,401	3.32	%
Nontaxable		5,701			42	2.93			5,423			40	2.97			15,280			119	3.11
Total Securities		2,762,203			26,005	3.75			2,635,139			24,195	3.69			2,590,282			21,520	3.32

Federal funds sold		433,423			5,906	5.42			510,401			6,967	5.49			547,576			7,415	5.37
Interest bearing deposits with other banks and other investments		102,700			1,232	4.77			98,942			1,361	5.53			90,039			1,062	4.68

Total Loans, net²		10,128,822			151,282	5.94			10,005,122			147,518	5.93			10,043,611			150,048	5.93

Total Earning Assets		13,427,148			184,425	5.46			13,249,604			180,041	5.47			13,271,508			180,045	5.38

Allowance for credit losses		(141,974	)						(146,380	)						(158,440	)
Cash and due from banks		167,103							168,439							168,931
Bank premises and equipment, net		109,699							110,709							116,704
Intangible assets		812,761							818,914							839,787
Bank owned life insurance		304,703							302,165							295,272
Other assets including deferred tax assets		317,406							336,256							372,241

Total Assets	$	14,996,846						$	14,839,707						$	14,906,003

Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand	$	2,489,674		$	12,905	2.06	%	$	2,670,569		$	14,946	2.25	%	$	2,804,243		$	15,013	2.12	%
Savings		546,473			601	0.44			584,490			560	0.39			770,503			465	0.24
Money market		3,942,357			38,457	3.88			3,665,858			35,813	3.93			2,972,495			22,918	3.06
Time deposits		1,716,720			19,002	4.40			1,631,290			17,928	4.42			1,619,572			16,461	4.03
Securities sold under agreements to repurchase		241,083			2,044	3.37			293,603			2,683	3.68			327,711			2,876	3.48
Federal Home Loan Bank borrowings		237,935			2,549	4.26			149,234			1,592	4.29			111,087			888	3.17
Long-term debt, net		106,706			1,892	7.05			106,532			1,862	7.03			106,036			1,919	7.18

Total Interest-Bearing Liabilities		9,280,948			77,450	3.32			9,101,576			75,384	3.33			8,711,647			60,540	2.76

Noninterest demand		3,393,110							3,485,603							3,987,761
Other liabilities		154,344							134,900							133,846
Total Liabilities		12,828,402							12,722,079							12,833,254

Shareholders' equity		2,168,444							2,117,628							2,072,747

Total Liabilities & Equity	$	14,996,846						$	14,839,707						$	14,906,003

Cost of deposits						2.34	%						2.31	%						1.79	%
Interest expense as a % of earning assets						2.29	%						2.29	%						1.81	%
Net interest income as a % of earning assets				$	106,975	3.17	%				$	104,657	3.18	%				$	119,505	3.57	%


¹On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.
²Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.

AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES¹

(Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

Nine Months Ended September 30, 2024

Nine Months Ended September 30, 2023

Average

Yield/

Average

Yield/

(Amounts in thousands)

Balance

Interest

Rate

Balance

Interest

Rate

Assets

Earning assets:

Securities:

Taxable

2,655,422

72,511

3.65

2,649,127

61,543

3.10

Nontaxable

5,677

123

2.89

15,721

370

3.14

Total Securities

2,661,099

72,634

3.65

2,664,848

61,913

3.10

Federal funds sold

438,089

17,929

5.47

336,022

12,444

4.95

Interest bearing deposits with other banks and other investments

102,415

3,721

4.85

90,511

4,530

6.69

Total Loans, net²

10,056,466

446,108

5.93

9,840,484

433,821

5.89

Total Earning Assets

13,258,069

540,392

5.44

12,931,865

512,708

5.30

Allowance for credit losses

(145,579

)