• Seacoast Reports Fourth Quarter and Full Year 2021 Results

    المصدر: Nasdaq GlobeNewswire / 27 يناير 2022 16:01:01   America/New_York

    Full Year Net Income of $124.4 Million, Increasing 60% Year-over-Year

    Strong Growth in Loan Outstandings and Record Loan Pipelines Highlight Q4 Results

    STUART, Fla., Jan. 27, 2022 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the fourth quarter of 2021 of $36.3 million, or $0.62 per diluted share. Fourth quarter 2021 results represent an increase of 58% compared to the third quarter of 2021, and an increase of 24% compared to the fourth quarter of 2020. For the full year 2021, net income was $124.4 million, or $2.18 per diluted share, an increase of 60% compared to the full year 2020. Adjusted net income1 for the fourth quarter of 2021 was $36.9 million, or $0.62 per diluted share. Fourth quarter 2021 adjusted results represent an increase of 26% compared to the third quarter of 2021, and an increase of 20% compared to the fourth quarter of 2020. Adjusted net income1 for the full year 2021 was $135.0 million, or $2.36 per diluted share, an increase of 52% compared to the full year 2020. At December 31, 2021, the ratio of tangible common equity to tangible assets was 11.09%, tangible book value per share was $17.84 and the Tier 1 capital ratio was 17.4%.

    For the fourth quarter of 2021, return on average tangible assets was 1.51%, return on average tangible shareholders' equity was 14.29%, and the efficiency ratio was 53.70%, compared to 1.00%, 9.56%, and 59.55%, respectively, in the prior quarter, and 1.49%, 13.87%, and 48.23%, respectively, in the prior year quarter. For the full year 2021, return on average tangible assets was 1.41%, return on average tangible shareholders’ equity was 13.27%, and the efficiency ratio was 55.39%, compared to 1.08%, 10.10%, and 54.84%, respectively for the full year 2020. Adjusted return on average tangible assets1 in the fourth quarter of 2021 was 1.49%, adjusted return on average tangible shareholders' equity1 was 14.11%, and the adjusted efficiency ratio1 was 53.43%, compared to 1.23%, 11.72%, and 51.50%, respectively, in the prior quarter, and 1.50%, 14.00%, and 48.75%, respectively, in the prior year quarter. Adjusted return on average tangible assets1 for the full year 2021 was 1.48%, adjusted return on average tangible shareholders' equity1 was 13.97%, and the adjusted efficiency ratio1 was 52.59%, compared to 1.17%, 10.93%, and 51.63% for the full year 2020.

    Charles M. Shaffer, Seacoast's President and CEO, said, "The Seacoast team delivered another outstanding quarter, generating $42.3 million in pre-tax pre-provision earnings and producing 8% annualized loan growth for the quarter. I am particularly proud of our team's continued execution of our strategic priorities, including an ongoing focus on improving our customers' digital experiences and positioning Seacoast as the leading commercial bank in Florida."

    Shaffer added, "During the quarter, we continued to recruit both individual bankers and teams from upstream organizations challenged with integrating larger mergers. This high-quality talent is beginning to contribute materially to our pipelines, and we are excited to welcome these bankers to the Seacoast franchise."

    Shaffer concluded, "It is an exciting period at Seacoast. Florida's inbound population growth remains strong, and our local economies are continuing to expand at a significant pace. The recruiting pipeline has never been stronger, and in the first quarter, we will introduce our clients to a much improved digital experience. When you put all of this together, in combination with our fortress balance sheet and ample liquidity, it provides confidence that the coming year is primed for disciplined growth."

    2022 Acquisitions of Sabal Palm Bancorp, Inc. and Business Bank of Florida Corp.

    On January 3, 2022, the Company completed the acquisitions of Sabal Palm Bancorp, Inc, and Business Bank of Florida Corp., providing an entry into the desirable Sarasota market and deepening the Company’s presence in Brevard County, Florida.

    Financial Results

    Income Statement

    • Net income was $36.3 million, or $0.62 per diluted share for the fourth quarter of 2021 compared to $22.9 million, or $0.40, for the prior quarter, and $29.3 million, or $0.53, for the prior year quarter. For the year ended December 31, 2021, net income was $124.4 million, or $2.18 per diluted share, compared to $77.8 million, or $1.44, for the year ended December 31, 2020. Adjusted net income1 for the fourth quarter of 2021 was $36.9 million, or $0.62 per diluted share, compared to $29.4 million, or $0.51, for the prior quarter, and $30.7 million, or $0.55, for the prior year quarter. For the year ended December 31, 2021, adjusted net income1 was $135.0 million, or $2.36 per diluted share, compared to $89.0 million, or $1.65, for the year ended December 31, 2020.
    • Net revenues were $91.0 million in the fourth quarter of 2021, an increase of $0.6 million, or 1%, compared to the prior quarter, and an increase of $7.3 million, or 9%, compared to the prior year quarter. For the year ended December 31, 2021, net revenues were $346.8 million, an increase of $22.4 million, or 7%, compared to the year ended December 31, 2020. Adjusted revenues1 were $90.6 million in the fourth quarter of 2021, an increase of $0.2 million compared to the prior quarter, and an increase of $6.9 million, or 8.2%, compared to the prior year quarter. For the year ended December 31, 2021, net revenues were $346.6 million, an increase of $23.5 million, or 7%, compared to the year ended December 31, 2020.
    • Net interest income totaled $72.3 million in the fourth quarter of 2021, an increase of $1.0 million, or 1%, from the prior quarter, reflecting the benefit of strong organic loan growth, partially offset by lower recognition of fees from slower PPP loan forgiveness. For the year ended December 31, 2021, net interest income was $276.0 million, an increase of $13.3 million, or 5%, compared to the year ended December 31, 2020. As of December 31, 2021, remaining deferred fees on PPP loans total $2.4 million, which will be recognized over the loans' remaining contractual maturity or earlier, as loans are forgiven.
    • Net interest margin declined to 3.16% in the fourth quarter of 2021 compared to 3.22% in the third quarter of 2021, driven by lower yields on securities and loans reflective of the rate environment, partially offset by lower levels of excess liquidity and lower cost of deposits. Excluding the effect of PPP and accretion on acquired loans, net interest margin increased two basis points, from 2.89% in the third quarter of 2021 to 2.91% in the fourth quarter of 2021. Securities yields declined two basis points to 1.57% with continued careful deployment of cash into securities purchases. Non-PPP loan yields declined 11 basis points to 4.18%, with a record $408.9 million in commercial loan originations during the fourth quarter of 2021. Offsetting and favorable was the decline in excess liquidity including a strategic decline in brokered deposits, and a further decline in the cost of deposits to only six basis points. The effect on net interest margin of accretion of purchase discounts on acquired loans was an increase of 15 basis points in each of the fourth and third quarters of 2021. The effect on net interest margin of interest and fees on PPP loans was an increase of 10 basis points in the fourth quarter of 2021 compared to an increase of eighteen basis points in the prior quarter.
    • Noninterest income totaled $18.7 million in the fourth quarter of 2021, a decrease of $0.3 million, or 2%, compared to the prior quarter, and an increase of $3.8 million, or 25%, compared to the prior year quarter. For the year ended December 31, 2021, noninterest income was $70.7 million, an increase of $9.2 million, or 15%, compared to the year ended December 31, 2020. Results for the fourth quarter of 2021 included the following:

      • Interchange revenue was flat compared to the prior quarter at $4.1 million, reflecting strong transactional volume despite the impact of the COVID-19 Omicron variant on spending late in the quarter. Economic conditions in Florida remain strong, and indications of consumer confidence are high.
      • Wealth management income was $2.4 million in the fourth quarter, a decrease of $0.2 million compared to the prior quarter. Higher trust-related fees in the prior quarter drove the comparative decline. The wealth management team added $64 million in AUM during the fourth quarter, and $419 million for the full year 2021, ending the year with $1.2 billion in assets under management, a 42% increase compared to the prior year.
      • Mortgage banking fees were $2.0 million, compared to $2.5 million in the prior quarter, due to slowing refinance activity and continuing low housing inventory levels.
      • SBA gains were $0.2 million compared to $0.8 million in the prior quarter, on lower saleable production.
      • Other income increased by $1.1 million in the fourth quarter of 2021, including an increase of $0.7 million in gains from SBIC investments compared to the prior quarter. Amounts recognized on SBIC investments will vary amongst periods. In addition, the sale of a website domain name obtained in a prior bank acquisition resulted in a gain of $0.8 million, which has been removed from the presentation of adjusted net income.
      • The Company recognized $0.4 million in losses in the fourth quarter of 2021 on the sale of lower-yielding securities, which were removed from the presentation of adjusted net income.
    • The provision for credit losses was a net benefit of $3.9 million in the fourth quarter of 2021, reflecting continued improvement in the economic outlook, compared to a provision of $5.1 million in the prior quarter. The prior quarter included an increase associated with onboarding the Legacy Bank of Florida acquisition.
    • Noninterest expense was $50.3 million in the fourth quarter of 2021, a decrease of $5.0 million, or 9%, compared to the prior quarter, and an increase of $6.6 million, or 15%, compared to the prior year quarter. For the year ended December 31, 2021, noninterest expense was $197.4 million, an increase of $11.9 million, or 6%, compared to the year ended December 31, 2020. Changes from the third quarter of 2021 included the following:

      • Salaries and wages decreased $2.9 million to $25.0 million, with the prior quarter reflecting $2.6 million in merger-related expenses associated with the Legacy Bank of Florida acquisition.
      • Employee benefits increased by $0.6 million to $4.8 million, primarily the result of higher employee health insurance costs.
      • Outsourced data processing costs decreased by $0.4 million to $5.2 million, with increases in the prior quarter reflecting expenses related to the acquisition of Legacy Bank of Florida, offset by expenses incurred in the fourth quarter of 2021 preparing for the upgrade of the online and mobile banking platform in the first quarter of 2022.
      • Legal and professional fees decreased by $1.7 million to $2.5 million, with the prior quarter reflecting $1.5 million in merger-related expenses.
    • Seacoast recorded $8.3 million of income tax expense in the fourth quarter of 2021, compared to $7.0 million in the prior quarter and $8.8 million in the fourth quarter of 2020. A temporary decline in the Florida corporate income tax rate to 3.535% retroactive to January 1, 2021, lowered tax expense by $0.7 million in the fourth quarter of 2021. The tax rate increased to 5.5% effective January 1, 2022, resulting in an additional tax benefit of $0.8 million recognized in the fourth quarter of 2021 upon the adjustment of the value of deferred tax assets affected by the change. Tax benefits related to stock-based compensation totaled $0.6 million in the fourth quarter of 2021, $0.3 million in the third quarter of 2021, and were nominal in the fourth quarter of 2020.
    • The ratio of net adjusted noninterest expense1 to average tangible assets was 1.96% in the fourth quarter of 2021, compared to 1.95% in the prior quarter and 2.00% in the fourth quarter of 2020.
    • The efficiency ratio was 53.70% in the fourth quarter of 2021, compared to 59.55% in the prior quarter and 48.23% in the prior year quarter. The decrease from the prior quarter primarily reflects the impact of merger related expenses incurred in the prior quarter. The efficiency ratio was 55.39% for the full year 2021 compared to 54.84% for the full year 2020. The adjusted efficiency ratio1 was 53.43% in the fourth quarter of 2021, compared to 51.50% in the prior quarter and 48.75% in the prior year quarter. The adjusted efficiency ratio1 for the full year 2021 was 52.59% compared to 51.63% for the full year 2020.

    Balance Sheet

    • At December 31, 2021, the Company had total assets of $9.7 billion and total shareholders' equity of $1.3 billion. Book value per share increased to $22.40 on December 31, 2021 from $22.12 on September 30, 2021, and $20.46 on December 31, 2020. Tangible book value per share of $17.84 on December 31, 2021 increased 10% compared to December 31, 2020.
    • Debt securities totaled $2.3 billion on December 31, 2021, an increase of $210.3 million, or 10%, compared to September 30, 2021. Purchases during the fourth quarter of 2021 totaled $431.1 million, consisting primarily of agency-issued collateralized mortgage obligations with an average yield of 1.48% and a duration of 3.2 years. The Company continues to take a prudent and disciplined approach to reinvesting liquidity.
    • Loans totaled $5.9 billion on December 31, 2021, an increase of $19.1 million compared to September 30, 2021, inclusive of PPP loans, which declined $99.5 million during the quarter. When excluding the impact of PPP loans, loans outstanding increased $119 million, or 2% from the prior quarter.
    • Loan originations were $599.9 million in the fourth quarter of 2021, compared to $744.0 million in the third quarter of 2021, a decrease of 19%. The decline in loan originations was the result of wholesale loans purchased in the prior quarter. Loan originations for the full year 2021 were $2.5 billion, an increase of 20% compared to the prior year.

      • Commercial originations were $408.9 million during the fourth quarter of 2021, compared to $331.6 million in the third quarter of 2021, and $277.4 million in the fourth quarter of 2020. The combination of economic expansion and our focus on building the leading commercial bank in Florida contributed to the increase in originations during the quarter.
      • Consumer originations in the fourth quarter of 2021 increased to $72.6 million from $66.4 million in the third quarter of 2021 and from $47.5 million in the fourth quarter of 2020. When comparing the fourth quarter of 2021 to the fourth quarter of 2020, consumer originations increased 53%.
      • Residential loans originated for sale in the secondary market totaled $69.2 million in the fourth quarter of 2021, compared to $95.1 million in the third quarter of 2021 and $161.6 million in the fourth quarter of 2020. Limited housing inventory and slowing refinance activity contributed to lower production.
      • Closed residential loans retained in the portfolio totaled $49.1 million in the fourth quarter of 2021, compared to $250.8 million in the third quarter of 2021, and $54.5 million in the fourth quarter of 2020. The third quarter of 2021 included $180.8 million in opportunistic purchases of high-quality wholesale residential home mortgage loans.
    • Pipelines (loans in underwriting and approval or approved and not yet closed) totaled $483.3 million on December 31, 2021, an increase of 1% from September 30, 2021 and an increase of 60% from December 31, 2020.

      • Commercial pipelines were $397.8 million as of December 31, 2021, an increase of 8% from $368.9 million at September 30, 2021, and an increase of 139% from $166.7 million at December 31, 2020. We expect commercial production and pipelines to continue to grow as we expand into new markets and add well known commercial bankers across the state.
      • Consumer pipelines were $29.7 million as of December 31, 2021, compared to $31.0 million at September 30, 2021, and $18.2 million at December 31, 2020.
      • Residential saleable pipelines were $30.1 million as of December 31, 2021, compared to $42.8 million at September 30, 2021, and $92.0 million at December 31, 2020. Retained residential pipelines were $25.6 million as of December 31, 2021, compared to $35.4 million at September 30, 2021, and $25.1 million at December 31, 2020.
    • Total deposits were $8.1 billion as of December 31, 2021, a decrease of $266.6 million, or 3%, compared to September 30, 2021, and an increase of $1.1 billion, or 16%, compared to December 31, 2020.

      • Total transaction account balances increased $34.1 million, or 1%, quarter-over-quarter, and at December 31, 2021 represent 62% of overall deposit funding.
      • Money market deposits decreased by $300 million to $1.7 billion, including a $189 million strategic decrease in brokered deposits. The majority of these brokered deposit balances returned to the balance sheet in January 2022.
      • The Company manages excess liquidity on the balance sheet through participation in programs with third-party deposit networks. Through these programs, the Company can offer its customers access to FDIC insurance on large balances with attractive terms, and the Company can retain or sell, on an overnight basis, the underlying deposits. At December 31, 2021, the Company had sold, on an overnight basis, $228 million in deposits compared to $233 million at September 30, 2021, and $113 million at December 31, 2020. These deposits are not included in the consolidated balance sheet.
      • The overall cost of deposits declined to six basis points in the fourth quarter of 2021 from seven basis points in the prior quarter.
      • As of December 31, 2021, deposits per banking center were $154 million, compared to $138 million on December 31, 2020. Two new branches were opened during the fourth quarter of 2021 in Broward County, one of the fastest growing markets in Florida.

    Asset Quality

    • Nonperforming loans decreased by $2.0 million to $30.6 million at December 31, 2021. Nonperforming loans to total loans outstanding were 0.52% at December 31, 2021, 0.55% at September 30, 2021, and 0.63% at December 31, 2020.
    • Nonperforming assets to total assets were 0.46% at December 31, 2021, 0.47% at September 30, 2021, and 0.59% at December 31, 2020.
    • The ratio of allowance for credit losses to total loans was 1.41% at December 31, 2021, 1.49% at September 30, 2021, and 1.62% at December 31, 2020. Excluding PPP loans, the ratio of allowance for credit losses to total loans at December 31, 2021 was 1.43%, compared to 1.54% at September 30, 2021 and 1.79% at December 31, 2020. The decline in coverage reflects continued improvement in the economic outlook and sustained strong portfolio performance.
    • Net charge-offs were $0.6 million, or 0.04%, of average loans for the fourth quarter of 2021 compared to $1.4 million, or 0.10%, of average loans in the third quarter of 2021 and $3.1 million, or 0.21%, of average loans in the fourth quarter of 2020. 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. Excluding PPP loans, Seacoast's average commercial loan size is $479 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 21% and 177% of total bank-level risk-based capital, respectively, compared to 21% and 175% respectively, in the third quarter of 2021. On a consolidated basis, construction and land development and commercial real estate loans represent 19% and 162%, respectively, of total consolidated risk-based capital.

    Capital and Liquidity

    • The tier 1 capital ratio was 17.4% at December 31, 2021, compared to 17.7% at September 30, 2021, and 17.4% at December 31, 2020. The total capital ratio was 18.2% and the tier 1 leverage ratio was 11.7% at December 31, 2021.
    • Cash and cash equivalents at December 31, 2021 totaled $737.7 million, a decrease of $490.0 million, or 40%, from September 30, 2021, reflecting the impact of securities purchases and strategic liquidity management activities.
    • Tangible common equity to tangible assets was 11.09% at December 31, 2021, compared to 10.62% at September 30, 2021, and 11.01% at December 31, 2020.
    • At December 31, 2021, the Company had available unsecured lines of credit of $165.0 million and lines of credit under lendable collateral value of $1.6 billion. Additionally, $1.9 billion of debt securities and $614.2 million of residential and commercial real estate loans are available as collateral for potential borrowings.
    FINANCIAL HIGHLIGHTS       
    (Amounts in thousands except per share data)(Unaudited)
     Quarterly Trends
              
     4Q'21 3Q'21 2Q'21 1Q'21 4Q'20
    Selected Balance Sheet Data:         
    Total Assets$9,681,433  $9,893,498  $9,316,833  $8,811,820  $8,342,392 
    Gross Loans 5,925,029   5,905,884   5,437,049   5,661,492   5,735,349 
    Total Deposits 8,067,589   8,334,172   7,836,436   7,385,749   6,932,561 
              
    Performance Measures:         
    Net Income$36,330  $22,944  $31,410  $33,719  $29,347 
    Net Interest Margin 3.16%  3.22%  3.23%  3.51%  3.59%
    Average Diluted Shares Outstanding 59,016   57,645   55,901   55,992   55,739 
    Diluted Earnings Per Share (EPS)$0.62  $0.40  $0.56  $0.60  $0.53 
    Return on (annualized):         
    Average Assets (ROA) 1.43%  0.93%  1.40%  1.61%  1.39%
    Average Tangible Assets (ROTA)2 1.51   1.00   1.48   1.70   1.49 
    Average Tangible Common Equity (ROTCE)2 14.29   9.56   13.88   15.62   13.87 
    Tangible Common Equity to Tangible Assets2 11.09   10.62   10.43   10.71   11.01 
    Tangible Book Value Per Share2$17.84  $17.52  $17.08  $16.62  $16.16 
    Efficiency Ratio 53.70%  59.55%  54.93%  53.21%  48.23%
              
    Adjusted Operating Measures1:         
    Adjusted Net Income$36,854  $29,350  $33,251  $35,497  $30,700 
    Adjusted Diluted EPS 0.62   0.51   0.59   0.63   0.55 
    Adjusted ROTA2 1.49%  1.23%  1.52%  1.75%  1.50%
    Adjusted ROTCE2 14.11   11.72   14.27   16.01   14.00 
    Adjusted Efficiency Ratio 53.43   51.50   53.49   51.99   48.75 
    Net Adjusted Noninterest Expense as a
    Percent of Average Tangible Assets2    		 1.96   1.95   1.98   2.16   2.00 
              
    Other Data:         
    Market capitalization3$2,070,465  $1,972,784  $1,893,141  $2,003,866  $1,626,913 
    Full-time equivalent employees 989   995   946   953   965 
    Number of ATMs 75   72   75   75   77 
    Full-service banking offices 54   52   48   48   51 
    Registered online users 136,401   133,977   129,568   126,352   123,615 
    Registered mobile devices 130,676   126,730   122,815   117,959   115,129 
     
    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.

    Fourth Quarter and Full Year 2021 Strategic Highlights

    Capitalizing on Seacoast’s Early Commitment to Digital Transformation

    • Seacoast is utilizing best-in-class technology and our extensive digital competencies to support our growth initiatives. An upgraded online and mobile banking platform, launching in the first quarter of 2022, unifies the user experience with new functionality and features that are consistent across all devices. This new platform will also deliver a range of new digital products and services. Delivering an enhanced digital banking experience for both consumers and businesses complements our exceptional branch, ATM, and telephone banking services to deliver a very competitive value proposition.
    • Routine transactions continue to migrate from the branch network to lower cost channels, including to digital offerings and to our recently upgraded ATM network. In the fourth quarter of 2021, 61% of all consumer deposit transactions were completed outside of the branch network, an increase of 10% compared to the same period in 2019.
    • Technology continues to help our teams outperform and provide outstanding service to our customers. A significant investment in our digital commercial loan origination platform in 2021 has accelerated our speed to market, providing a quicker renewal process and a streamlined workflow for bankers and underwriters. Customers have also benefited from our automated PPP forgiveness solution integrated with our existing technology infrastructure.

    Driving Sustainable Growth and Expanding our Footprint

    • Our balanced growth strategy includes organic growth initiatives across the state, including recent entries into Northeast Florida and Naples/Ft. Myers with key additions to our commercial banking leadership and teams. In 2021, we added 20 experienced bankers in the state’s most dynamic and fastest growing markets. We expect to continue to invest in well known seasoned bankers in the coming year.
    • Seacoast continues to evolve our branch footprint in order to redirect capacity into attractive growth markets. In alignment with this strategy, four banking center locations were consolidated in 2021, and two new branches opened.

    Scaling and Evolving Our Culture

    • In 2021, Seacoast customer satisfaction scores exceeded industry benchmarks, a reflection of best-in-class branch and call center customer service experiences. Seacoast index scores were 110% compared to the industry benchmark for branch customer service and 104% compared to the industry benchmark for call center support according to a leading data analytics and consumer intelligence company.
    • In November, Seacoast Bank was named one of the Best Banks to Work For in 2021 by American Banker. This is the second consecutive year that Seacoast was selected for this award. In July, Seacoast Bank was named to the Orlando Business Journal’s 2021 Best Places to Work. These distinctions recognize an outstanding leadership team that continually puts its employees first and prioritizes a collaborative and inclusive workplace.
    • Seacoast Bank was named among Forbes Magazine’s 2021 America’s Best-In-State Banks and Credit Unions. Seacoast has the distinction of being the only Florida-headquartered community bank to make the list. Forbes partnered with market research firm Statista to survey nearly 25,000 people in the U.S. about their banking relationships. Banks and credit unions were rated on overall recommendations and satisfaction, consumer trust, terms and conditions, branch services, digital services, and financial advice. Only 2.7% of all banks made the list.

    OTHER INFORMATION

    Conference Call Information
    Seacoast will host a conference call on January 28, 2022 at 10:00 a.m. (Eastern Time) to discuss the fourth quarter and full year 2021 earnings results and business trends. Investors may call in (toll-free) by dialing (800) 774-6070 (passcode: 7241 761; host: Charles Shaffer). Charts will be used during the conference call and may be accessed at Seacoast's website at www.SeacoastBanking.com by selecting "Presentations" under the heading "News/Events." A replay of the call will be available for one month, beginning late afternoon on January 28, 2022, and can be accessed via a link at www.SeacoastBanking.com under the heading “Corporate Information,” using the passcode 50264428.

    Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast's website at www.SeacoastBanking.com. The link is located in the subsection "Presentations" under the heading “Corporate Information.” Beginning late afternoon on January 28, 2022, an archived version of the webcast can be accessed from this same subsection of the website. The archived webcast will be available for one year.

    About Seacoast Banking Corporation of Florida (NASDAQ: SBCF)
    Seacoast Banking Corporation of Florida (NASDAQ: SBCF) is one of the largest community banks headquartered in Florida with approximately $9.7 billion in assets and $8.1 billion in deposits as of December 31, 2021. Seacoast provides integrated financial services including commercial and consumer banking, wealth management, and mortgage services to customers at over 50 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 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, loan growth, cost savings, enhanced revenues, economic and seasonal conditions in our markets, and improvements to reported earnings that may be realized from cost controls, tax law changes, new initiatives and for integration of banks that we have acquired (including Florida Business Bank and Sabal Palm Bank) or expect 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, any of which may be impacted by the COVID-19 pandemic and any variants thereof and related effects on the U.S. economy. Actual results may differ from those set forth in the forward-looking statements.

    Forward-looking statements include statements with respect to our 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 our control, and which may cause the actual results, performance or achievements of Seacoast to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. You should not expect us 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 our use of words such as "may", "will", "anticipate", "assume", "should", "support", "indicate", "would", "believe", "contemplate", "expect", "estimate", "continue", "further", "plan", "point to", "project", "could", "intend", "target" or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the effects of future economic and market conditions, including seasonality and the adverse impact of COVID-19 (economic and otherwise); governmental monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve, as well as legislative, tax and regulatory changes, including those that impact the money supply and inflation; changes in accounting policies, rules and practices, including the impact of the adoption of CECL; our participation in the Paycheck Protection Program ("PPP"); the risks of changes in interest rates on the level and composition of deposits, loan demand, liquidity and the values of loan collateral, securities, and interest sensitive assets and liabilities; interest rate risks, sensitivities and the shape of the yield curve; uncertainty related to the impact of LIBOR calculations on securities and loans; changes in borrower credit risks and payment behaviors; changing retail distribution strategies, customer preferences and behavior; changes in the availability and cost of credit and capital in the financial markets; changes in the prices, values and sales volumes of residential and commercial real estate; our ability to comply with any regulatory requirements; the effects of problems encountered by other financial institutions that adversely affect us or the banking industry; our concentration in commercial real estate loans; 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 our investments due to market volatility or counterparty payment risk; statutory and regulatory dividend restrictions; increases in regulatory capital requirements for banking organizations generally; the risks of mergers, acquisitions and divestitures, including our 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; our ability to identify and address increased cybersecurity risks; inability of our risk management framework to manage risks associated with our business; dependence on key suppliers or vendors to obtain equipment or services for our business on acceptable terms; reduction in or the termination of our ability to use the mobile-based platform that is critical to our business growth strategy; the effects of war or other conflicts, acts of terrorism, natural disasters, health emergencies, epidemics or pandemics, or other catastrophic events that may affect general economic conditions; unexpected outcomes of and the costs associated with, existing or new litigation involving us; our 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 our deferred tax assets could be reduced if estimates of future taxable income from our operations and tax planning strategies are less than currently estimated and sales of our capital stock could trigger a reduction in the amount of net operating loss carryforwards that we 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, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our 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; and the failure of assumptions underlying the establishment of reserves for possible loan losses.

    Actual results and capital and other financial conditions may differ materially from those included in these statements due to a variety of factors. These factors include, among others described above, macroeconomic and other challenges and uncertainties related to the COVID-19 pandemic, such as the duration and severity of the impact on public health (including the potential negative impact of various state and local policies enacted as a result of the pandemic and the vaccines’ efficacy against the virus, including new variants),, the U.S. and global economies, financial markets and consumer and corporate customers and clients, including economic activity and employment, as well as the various actions taken in response by governments, central banks and others, including Seacoast, and the precautionary statements included in this release.

    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 our annual report on Form 10-K for the year ended December 31, 2020 and quarterly report on Form 10-Q for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021 under "Special Cautionary Notice Regarding Forward-looking Statements" and "Risk Factors", and otherwise in our 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.

    1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.

     

    FINANCIAL HIGHLIGHTS(Unaudited)     
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES    
      
     Quarterly Trends Twelve Months Ended
                  
    (Amounts in thousands, except ratios and per share data)4Q'21 3Q'21 2Q'21 1Q'21 4Q'20 4Q'21 4Q'20
                  
    Summary of Earnings             
    Net income$36,330  $22,944  $31,410  $33,719  $29,347  $124,403  $77,764 
    Adjusted net income1 36,854   29,350   33,251   35,497   30,700   134,952   88,950 
    Net interest income2 72,412   71,455   65,933   66,741   68,903   276,541   263,203 
    Net interest margin2,3 3.16%  3.22%  3.23%  3.51%  3.59%  3.27%  3.65%
                  
    Performance Ratios             
    Return on average assets-GAAP basis3 1.43%  0.93%  1.40%  1.61%  1.39%  1.33%  0.99%
    Return on average tangible assets-GAAP basis3,4 1.51   1.00   1.48   1.70   1.49   1.41   1.08 
    Adjusted return on average tangible assets1,3,4 1.49   1.23   1.52   1.75   1.50   1.48   1.17 
    Net adjusted noninterest expense to average tangible assets1,3,4 1.96   1.95   1.98   2.16   2.00   2.01   2.19 
                  
    Return on average shareholders' equity-GAAP basis3 11.06   7.29   10.76   12.03   10.51   10.24   7.44 
    Return on average tangible common equity-GAAP basis3,4 14.29   9.56   13.88   15.62   13.87   13.27   10.10 
    Adjusted return on average tangible common equity1,3,4 14.11   11.72   14.27   16.01   14.00   13.97   10.93 
    Efficiency ratio5 53.70   59.55   54.93   53.21   48.23   55.39   54.84 
    Adjusted efficiency ratio1 53.43   51.50   53.49   51.99   48.75   52.59   51.63 
    Noninterest income to total revenue (excluding securities gains/losses) 20.89   21.09   18.94   21.07   17.85   20.53   18.68 
    Tangible common equity to tangible assets4 11.09   10.62   10.43   10.71   11.01   11.09   11.01 
    Average loan-to-deposit ratio 70.29   69.97   74.13   81.39   84.48   73.61   88.20 
    End of period loan-to-deposit ratio 73.84   71.46   69.93   77.48   83.72   73.84   83.72 
                  
    Per Share Data             
    Net income diluted-GAAP basis$0.62  $0.40  $0.56  $0.60  $0.53  $2.18  $1.44 
    Net income basic-GAAP basis 0.62   0.40   0.57   0.61   0.53   2.20   1.45 
    Adjusted earnings1 0.62   0.51   0.59   0.63   0.55   2.36   1.65 
                  
    Book value per share common 22.40   22.12   21.33   20.89   20.46   22.40   20.46 
    Tangible book value per share 17.84   17.52   17.08   16.62   16.16   17.84   16.16 
    Cash dividends declared 0.13   0.13   0.13   —   —   0.39   — 
                  
                  
    1Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP.  
    2Calculated on a fully taxable equivalent basis using amortized cost.  
    3These ratios are stated on an annualized basis and are not necessarily indicative of future periods.  
    4The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.  
    5Defined as noninterest expense less amortization of intangibles and gains, losses, and expenses on foreclosed properties divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains and losses).


    CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Unaudited)     
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES    
      
     Quarterly Trends Twelve Months Ended
                  
    (Amounts in thousands, except per share data)4Q'21 3Q'21 2Q'21 1Q'21 4Q'20 4Q'21 4Q'20
                  
    Interest on securities:             
    Taxable$8,574  $7,775  $6,559  $6,298  $6,477  $29,206  $29,718
    Nontaxable 139   143   147   148   86   577   454
    Fees on PPP loans 3,011   5,218   3,877   5,390   3,603   17,496   7,774
    Interest on PPP loans 341   699   1,251   1,496   1,585   3,787   4,201
    Interest and fees on loans - excluding PPP loans 61,049   58,507   55,220   55,412   60,407   230,188   242,391
    Interest on federal funds sold and other investments 828   867   709   586   523   2,990   2,497
    Total Interest Income 73,942   73,209   67,763   69,330   72,681   284,244   287,035
                  
    Interest on deposits 711   849   980   1,065   1,228   3,605   6,920
    Interest on time certificates 494   583   524   1,187   2,104   2,788   13,365
    Interest on borrowed money 448   453   457   468   558   1,826   4,007
    Total Interest Expense 1,653   1,885   1,961   2,720   3,890   8,219   24,292
                  
    Net Interest Income 72,289   71,324   65,802   66,610   68,791   276,025   262,743
    Provision for credit losses (3,942)  5,091   (4,855)  (5,715)  1,900   (9,421)  38,179
    Net Interest Income After Provision for Credit Losses 76,231   66,233   70,657   72,325   66,891   285,446   224,564
                  
    Noninterest income:             
    Service charges on deposit accounts 2,606   2,495   2,338   2,338   2,423   9,777   9,429
    Interchange income 4,135   4,131   4,145   3,820   3,596   16,231   13,711
    Wealth management income 2,356   2,562   2,387   2,323   1,949   9,628   7,507
    Mortgage banking fees 2,030   2,550   2,977   4,225   3,646   11,782   14,696
    Marine finance fees 147   152   177   189   145   665   690
    SBA gains 200   812   232   287   113   1,531   685
    BOLI income 1,295   1,128   872   859   889   4,154   3,561
    Other 6,316   5,228   2,249   3,744   2,187   17,537   10,056
      19,085   19,058   15,377   17,785   14,948   71,305   60,335
    Securities (losses) gains, net (379)  (30)  (55)  (114)  (18)  (578)  1,235
    Total Noninterest Income 18,706   19,028   15,322   17,671   14,930   70,727   61,570
                  
    Noninterest expenses:             
    Salaries and wages 25,005   27,919   22,966   21,393   21,490   97,283   88,539
    Employee benefits 4,763   4,177   3,953   4,980   3,915   17,873   15,544
    Outsourced data processing costs 5,165   5,610   4,676   4,468   4,233   19,919   19,053
    Telephone / data lines 790   810   838   785   774   3,223   2,984
    Occupancy 3,500   3,541   3,310   3,789   3,554   14,140   14,150
    Furniture and equipment 1,403   1,567   1,166   1,254   1,317   5,390   5,874
    Marketing 1,060   1,353   1,002   1,168   1,045   4,583   4,833
    Legal and professional fees 2,461   4,151   2,182   2,582   509   11,376   9,167
    FDIC assessments 713   651   515   526   528   2,405   1,268
    Amortization of intangibles 1,304   1,306   1,212   1,211   1,421   5,033   5,857
    Foreclosed property expense and net (gain) loss on sale (175)  66   (90)  (65)  1,821   (264)  2,263
    Provision for credit losses on unfunded commitments —   133   —   —   (795)  133   185
    Other 4,274   3,984   4,054   4,029   3,869   16,341   15,835
    Total Noninterest Expense 50,263   55,268   45,784   46,120   43,681   197,435   185,552
                  
    Income Before Income Taxes 44,674   29,993   40,195   43,876   38,140   158,738   100,582
    Income taxes 8,344   7,049   8,785   10,157   8,793   34,335   22,818
                  
    Net Income$36,330  $22,944  $31,410  $33,719  $29,347  $124,403  $77,764
                  
    Per share of common stock:             
                  
    Net income diluted$0.62  $0.40  $0.56  $0.60  $0.53  $2.18  $1.44
    Net income basic 0.62   0.40   0.57   0.61   0.53   2.20   1.45
    Cash dividends declared 0.13   0.13   0.13   —   —   0.39   —
                  
    Average diluted shares outstanding 59,016   57,645   55,901   55,992   55,739   57,088   53,930
    Average basic shares outstanding 58,462   57,148   55,421   55,271   55,219   56,586   53,502
                  


    CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited) 
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
       
      December 31, September 30, June 30, March 31, December 31,
    (Amounts in thousands)  2021   2021   2021   2021   2020 
               
    Assets          
    Cash and due from banks $238,750  $199,460  $97,468  $89,123  $86,630 
    Interest bearing deposits with other banks  498,979   1,028,235   1,351,377   890,202   317,458 
    Total Cash and Cash Equivalents  737,729   1,227,695   1,448,845   979,325   404,088 
               
    Time deposits with other banks  —   750   750   750   750 
               
    Debt Securities:          
    Available for sale (at fair value)  1,644,319   1,546,155   1,322,776   1,051,396   1,398,157 
    Held to maturity (at amortized cost)  638,640   526,502   493,467   512,307   184,484 
    Total Debt Securities  2,282,959   2,072,657   1,816,243   1,563,703   1,582,641 
               
    Loans held for sale  31,791   49,597   42,793   60,924   68,890 
               
    Loans  5,925,029   5,905,884   5,437,049   5,661,492   5,735,349 
    Less: Allowance for credit losses  (83,315)  (87,823)  (81,127)  (86,643)  (92,733)
    Net Loans  5,841,714   5,818,061   5,355,922   5,574,849   5,642,616 
               
    Bank premises and equipment, net  72,404   71,250   69,392   70,385   75,117 
    Other real estate owned  13,618   13,628   12,804   15,549   12,750 
    Goodwill  252,154   252,154   221,176   221,176   221,176 
    Other intangible assets, net  14,845   16,153   14,106   15,382   16,745 
    Bank owned life insurance  205,041   193,747   158,506   132,634   131,776 
    Net deferred tax assets  27,321   24,187   21,839   24,497   23,629 
    Other assets  201,857   153,619   154,457   152,646   162,214 
    Total Assets $9,681,433  $9,893,498  $9,316,833  $8,811,820  $8,342,392 
               
    Liabilities and Shareholders' Equity          
    Liabilities          
    Deposits          
    Noninterest demand $3,075,534  $3,086,466  $2,952,160  $2,685,247  $2,289,787 
    Interest-bearing demand  1,890,212   1,845,165   1,763,884   1,647,935   1,566,069 
    Savings  895,019   834,309   811,516   768,362   689,179 
    Money market  1,651,881   1,951,639   1,807,190   1,671,179   1,556,370 
    Other time certificates  404,601   437,973   335,370   373,297   425,878 
    Brokered time certificates  —   20,000   20,000   93,500   233,815 
    Time certificates of more than $250,000  150,342   158,620   146,316   146,229   171,463 
    Total Deposits  8,067,589   8,334,172   7,836,436   7,385,749   6,932,561 
               
    Securities sold under agreements to repurchase  121,565   105,548   119,973   109,171   119,609 
    Federal Home Loan Bank borrowings  —   —   —   —   — 
    Subordinated debt  71,646   71,576   71,506   71,436   71,365 
    Other liabilities  109,897   91,682   106,571   90,115   88,455 
    Total Liabilities  8,370,697   8,602,978   8,134,486   7,656,471   7,211,990 
               
    Shareholders' Equity          
    Common stock  5,850   5,835   5,544   5,529   5,524 
    Additional paid in capital  963,851   959,644   862,598   858,688   856,092 
    Retained earnings  358,598   329,918   314,584   290,420   256,701 
    Treasury stock  (10,569)  (10,146)  (10,180)  (8,693)  (8,285)
       1,317,730   1,285,251   1,172,546   1,145,944   1,110,032 
    Accumulated other comprehensive income, net  (6,994)  5,269   9,801   9,405   20,370 
    Total Shareholders' Equity  1,310,736   1,290,520   1,182,347   1,155,349   1,130,402 
    Total Liabilities & Shareholders' Equity $9,681,433  $9,893,498  $9,316,833  $8,811,820  $8,342,392 
               
    Common shares outstanding  58,504   58,349   55,436   55,294   55,243 
               


    CONSOLIDATED QUARTERLY FINANCIAL DATA(Unaudited) 
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
      
      
              
    (Amounts in thousands)4Q'21 3Q'21 2Q'21 1Q'21 4Q'20
              
    Credit Analysis         
    Net charge-offs - non-acquired loans$541  $198  $214  $292  $3,028 
    Net charge-offs - acquired loans 29   1,234   441   78   99 
    Total Net Charge-offs  570   1,432   655   370   3,127 
              
    Net charge-offs to average loans - non-acquired loans 0.04%  0.01%  0.02%  0.02%  0.20%
    Net charge-offs to average loans - acquired loans —   0.09   0.03   0.01   0.01 
    Total Net Charge-offs to Average Loans 0.04   0.10   0.05   0.03   0.21 
              
    Allowance for credit losses - non-acquired loans$64,710  $64,740  $64,525  $66,523  $69,786 
    Allowance for credit losses - acquired loans 18,605   23,083   16,602   20,120   22,947 
    Total Allowance for Credit Losses$83,315  $87,823  $81,127  $86,643  $92,733 
              
    Non-acquired loans at end of period$4,860,171  $4,608,801  $4,290,622  $4,208,911  $4,196,205 
    Acquired loans at end of period 973,751   1,106,481   782,315   870,928   972,183 
    Paycheck Protection Program loans at end of period1 91,107   190,602   364,112   581,653   566,961 
    Total Loans$5,925,029  $5,905,884  $5,437,049  $5,661,492  $5,735,349 
              
    Non-acquired loans allowance for credit losses to non-acquired loans at end of period 1.33%  1.40%  1.50%  1.58%  1.66%
    Total allowance for credit losses to total loans at end of period 1.41   1.49   1.49   1.53   1.62 
    Total allowance for credit losses to total loans, excluding PPP loans 1.43   1.54   1.60   1.71   1.79 
    Purchase discount on acquired loans at end of period 2.27   2.27   2.98   2.93   2.86 
              
    End of Period         
    Nonperforming loans$30,598  $32,612  $32,920  $35,328  $36,110 
    Other real estate owned 12,223   11,843   11,019   10,836   10,182 
    Properties previously used in bank operations included in other real estate owned 1,395   1,785   1,785   4,713   2,569 
    Total Nonperforming Assets$44,216  $46,240  $45,724  $50,877  $48,861 
              
    Accruing troubled debt restructures (TDRs)$3,917  $4,047  $4,037  $4,067  $4,182 
              
    Nonperforming Loans to Loans at End of Period 0.52%  0.55%  0.61%  0.62%  0.63%
    Nonperforming Assets to Total Assets at End of Period 0.46   0.47   0.49   0.58   0.59 
              
     December 31, September 30, June 30, March 31, December 31,
    Loans 2021   2021   2021   2021   2020 
              
    Construction and land development$230,824  $227,459  $234,347  $227,117  $245,108 
    Commercial real estate - owner occupied 1,197,774   1,201,336   1,127,640   1,133,085   1,141,310 
    Commercial real estate - non-owner occupied 1,736,439   1,673,587   1,412,439   1,438,365   1,395,854 
    Residential real estate 1,425,354   1,467,329   1,226,536   1,246,549   1,342,628 
    Commercial and financial 1,069,356   982,552   900,206   860,813   854,753 
    Consumer 174,175   163,019   171,769   173,910   188,735 
    Paycheck Protection Program 91,107   190,602   364,112   581,653   566,961 
    Total Loans$5,925,029  $5,905,884  $5,437,049  $5,661,492  $5,735,349 
              
    13Q'21 includes $39 million in Paycheck Protection Program loans acquired from Legacy Bank of Florida.


    AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1(Unaudited) 
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
                      
                      
     4Q'21 3Q'21 4Q'20
     Average   Yield/ Average   Yield/ Average   Yield/
    (Amounts in thousands)Balance Interest Rate Balance Interest Rate Balance Interest Rate
                      
    Assets                 
    Earning assets:                 
    Securities:                 
    Taxable$2,198,517  $8,574 1.56% $1,971,520  $7,775 1.58% $1,496,536  $6,477 1.73%
    Nontaxable 24,664   176 2.85   25,311   181 2.86   25,943   109 1.68 
    Total Securities 2,223,181   8,750 1.57   1,996,831   7,956 1.59   1,522,479   6,586 1.73 
                      
    Federal funds sold and other investments 913,867   828 0.36   1,091,997   867 0.31   197,379   523 1.05 
                      
    Loans excluding PPP loans 5,804,149   61,135 4.18   5,422,350   58,600 4.29   5,276,224   60,497 4.56 
    PPP loans 136,942   3,352 9.71   281,724   5,917 8.33   629,855   5,187 3.28 
    Total Loans 5,941,091   64,487 4.31   5,704,074   64,517 4.49   5,906,079   65,684 4.42 
                      
    Total Earning Assets 9,078,139   74,065 3.24   8,792,902   73,340 3.31   7,625,937   72,793 3.80 
                      
    Allowance for credit losses (88,484)      (88,412)      (93,148)    
    Cash and due from banks 359,287       386,781       235,519     
    Premises and equipment 72,148       70,667       76,001     
    Intangible assets 267,692       254,980       238,631     
    Bank owned life insurance 195,169       164,879       131,208     
    Other assets 177,431       171,937       162,248     
                      
    Total Assets$10,061,382      $9,753,734      $8,376,396     
                      
    Liabilities and Shareholders' Equity                 
    Interest-bearing liabilities:                 
    Interest-bearing demand$1,960,083  $183 0.04% $1,891,092  $219 0.05% $1,458,299  $249 0.07%
    Savings 866,257   63 0.03   842,018   65 0.03   672,864   166 0.10 
    Money market 1,851,275   465 0.10   1,860,386   565 0.12   1,523,960   813 0.21 
    Time deposits 595,230   494 0.33   572,661   583 0.40   911,091   2,104 0.92 
    Securities sold under agreements to repurchase 106,691   30 0.11   120,507   35 0.12   101,665   42 0.16 
    Federal Home Loan Bank borrowings —   — —   —   — —   15,978   80 1.99 
    Other borrowings 71,600   418 2.32   71,530   418 2.32   71,321   436 2.43 
                      
    Total Interest-Bearing Liabilities 5,451,136   1,653 0.12   5,358,194   1,885 0.14   4,755,178   3,890 0.33 
                      
    Noninterest demand 3,179,798       2,985,582       2,424,523     
    Other liabilities 126,762       161,411       85,622     
    Total Liabilities 8,757,696       8,505,187       7,265,323     
                      
    Shareholders' equity 1,303,686       1,248,547       1,111,073     
                      
    Total Liabilities & Equity$10,061,382      $9,753,734      $8,376,396     
                      
    Cost of deposits    0.06%     0.07%     0.19%
    Interest expense as a % of earning assets    0.07%     0.09%     0.20%
    Net interest income as a % of earning assets  $72,412 3.16%   $71,455 3.22%   $68,903 3.59%
                      
                      
    1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.    
    Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.    


    AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1(Unaudited)
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES        
      
     Twelve Months Ended December 31, 2021 Twelve Months Ended December 31, 2020
     Average   Yield/ Average   Yield/
    (Amounts in thousands, except ratios)Balance Interest Rate Balance Interest Rate
                
    Assets           
    Earning assets:           
    Securities:           
    Taxable$1,839,619  $29,206 1.59% $1,277,441  $29,718 2.33%
    Nontaxable 25,369   730 2.88   22,164   570 2.57 
    Total Securities 1,864,988   29,936 1.61   1,299,605   30,288 2.33 
                
    Federal funds sold and other investments 829,328   2,990 0.36   239,494   2,497 1.04 
                
    Loans excluding PPP loans 5,369,204   230,552 4.29   5,259,653   242,736 4.62 
    PPP loans 381,860   21,282 5.57   419,154   11,974 2.86 
    Total Loans 5,751,064   251,834 4.38   5,678,807   254,710 4.49 
                
    Total Earning Assets 8,445,380   284,760 3.37   7,217,906   287,495 3.98 
                
    Allowance for credit losses (88,659)      (81,858)    
    Cash and due from banks 332,664       142,314     
    Premises and equipment 71,771       71,846     
    Intangible assets 249,089       231,267     
    Bank owned life insurance 156,599       128,569     
    Other assets 170,210       149,956     
                
    Total Assets$9,337,054      $7,860,000     
                
    Liabilities and Shareholders' Equity           
    Interest-bearing liabilities:           
    Interest-bearing demand$1,787,234  $895 0.05% $1,324,433  $1,710 0.13%
    Savings 805,816   383 0.05   610,015   849 0.14 
    Money market 1,765,444   2,327 0.13   1,294,629   4,361 0.34 
    Time deposits 602,739   2,788 0.46   1,101,321   13,365 1.21 
    Securities sold under agreements to repurchase 113,881   141 0.12   84,514   283 0.33 
    Federal Home Loan Bank borrowings —   — —   139,439   1,540 1.10 
    Other borrowings 71,495   1,685 2.36   71,220   2,184 3.07 
                
    Total Interest-Bearing Liabilities 5,146,609   8,219 0.16   4,625,571   24,292 0.53 
                
    Noninterest demand 2,851,687       2,107,931     
    Other liabilities 123,446       81,279     
    Total Liabilities 8,121,742       6,814,781     
                
    Shareholders' equity 1,215,312       1,045,219     
                
    Total Liabilities & Equity$9,337,054      $7,860,000     
                
    Cost of deposits    0.08%     0.32%
    Interest expense as a % of earning assets    0.10%     0.34%
    Net interest income as a % of earning assets  $276,541 3.27%   $263,203 3.65%
                
                
    1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.
    Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.


    CONSOLIDATED QUARTERLY FINANCIAL DATA(Unaudited) 
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
        
       December 31, September 30, June 30, March 31, December 31,
    (Amounts in thousands)  2021  2021  2021  2021  2020
                
    Customer Relationship Funding          
    Noninterest demand          
    Commercial  $2,477,111 $2,535,922 $2,431,928 $2,189,564 $1,821,361
    Retail   458,626  416,779  401,988  379,257  350,783
    Public funds   107,523  84,337  88,057  83,315  90,973
    Other   32,274  49,428  30,187  33,111  26,670
    Total Noninterest Demand  3,075,534  3,086,466  2,952,160  2,685,247  2,289,787
                
    Interest-bearing demand          
    Commercial   497,466  554,366  545,797  497,047  454,909
    Retail   1,144,635  1,069,668  958,619  895,853  839,958
    Public funds   248,111  221,131  259,468  255,035  271,202
    Total Interest-Bearing Demand  1,890,212  1,845,165  1,763,884  1,647,935  1,566,069
                
    Total transaction accounts          
    Commercial   2,974,577  3,090,288  2,977,725  2,686,611  2,276,270
    Retail   1,603,261  1,486,447  1,360,607  1,275,110  1,190,741
    Public funds   355,634  305,468  347,525  338,350  362,175
    Other   32,274  49,428  30,187  33,111  26,670
    Total Transaction Accounts  4,965,746  4,931,631  4,716,044  4,333,182  3,855,856
                
    Savings   895,019  834,309  811,516  768,362  689,179
                
    Money market          
    Commercial   732,639  827,901  787,894  692,537  611,623
    Retail   840,054  834,628  737,554  701,453  661,311
    Brokered   8,007  196,548  187,023  197,389  196,616
    Public funds   71,181  92,562  94,719  79,800  86,820
    Total Money Market  1,651,881  1,951,639  1,807,190  1,671,179  1,556,370
                
    Brokered time certificates  —  20,000  20,000  93,500  233,815
    Other time certificates  554,943  596,593  481,686  519,526  597,341
       554,943  616,593  501,686  613,026  831,156
    Total Deposits $8,067,589 $8,334,172 $7,836,436 $7,385,749 $6,932,561
                
    Customer sweep accounts $121,565 $105,548 $119,973 $109,171 $119,609
                

    Explanation of Certain Unaudited Non-GAAP Financial Measures

    This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance. The Company believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance and if not provided would be requested by the investor community. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might define or calculate these measures differently. The Company provides reconciliations between GAAP and these non-GAAP measures. These disclosures should not be considered an alternative to GAAP.

    GAAP TO NON-GAAP RECONCILIATION(Unaudited) 
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
                  
     Quarterly Trends Twelve Months Ended
                  
    (Amounts in thousands, except per share data)4Q'21 3Q'21 2Q'21 1Q'21 4Q'20 4Q'21 4Q'20
                  
    Net Income$36,330  $22,944  $31,410  $33,719  $29,347  $124,403  $77,764 
                  
    Total noninterest income 18,706   19,028   15,322   17,671   14,930   70,727   61,570 
    Securities losses (gains), net 379   30   55   114   18   578   (1,235)
    Gain on sale of domain name (included in other income) (755)  —   —   —   —   (755)  — 
    Total Adjustments to Noninterest Income (376)  30   55   114   18   (177)  (1,235)
    Total Adjusted Noninterest Income 18,330   19,058   15,377   17,785   14,948   70,550   60,335 
                  
    Total noninterest expense 50,263   55,268   45,784   46,120   43,681   197,435   185,552 
    Merger related charges (482)  (6,281)  (509)  (581)  —   (7,853)  (9,074)
    Amortization of intangibles (1,304)  (1,306)  (1,212)  (1,211)  (1,421)  (5,033)  (5,857)
    Business continuity expenses —   —   —   —   —   —   (307)
    Branch reductions and other expense initiatives (168)  (870)  (663)  (449)  (354)  (2,150)  (818)
    Total Adjustments to Noninterest Expense (1,954)  (8,457)  (2,384)  (2,241)  (1,775)  (15,036)  (16,056)
    Total Adjusted Noninterest Expense 48,309   46,811   43,400   43,879   41,906   182,399   169,496 
                  
    Income Taxes 8,344   7,049   8,785   10,157   8,793   34,335   22,818 
    Tax effect of adjustments 280   2,081   598   577   440   3,536   3,635 
    Effect of change in corporate tax rate on deferred tax assets 774   —   —   —   —   774   — 
    Total Adjustments to Income Taxes 1,054   2,081   598   577   440   4,310   3,635 
    Adjusted Income Taxes 9,398   9,130   9,383   10,734   9,233   38,645   26,453 
    Adjusted Net Income$36,854  $29,350  $33,251  $35,497  $30,700  $134,952  $88,950 
                  
    Earnings per diluted share, as reported$0.62  $0.40  $0.56  $0.60  $0.53  $2.18  $1.44 
    Adjusted Earnings per Diluted Share  0.62   0.51   0.59   0.63   0.55   2.36   1.65 
    Average diluted shares outstanding 59,016   57,645   55,901   55,992   55,739   57,088   53,930 
                  
    Adjusted Noninterest Expense$48,309  $46,811  $43,400  $43,879  $41,906  $182,399  $169,496 
    Provision for credit losses on unfunded commitments —   (133)  —   —   795   (133)  (185)
    Foreclosed property expense and net gain / (loss) on sale 175   (66)  90   65   (1,821)  264   (2,263)
    Net Adjusted Noninterest Expense$48,484  $46,612  $43,490  $43,944  $40,880  $182,530  $167,048 
                  
    Revenue$90,995  $90,352  $81,124  $84,281  $83,721  $346,752  $324,313 
    Total Adjustments to Revenue (376)  30   55   114   18   (177)  (1,235)
    Impact of FTE adjustment 123   131   131   131   112   516   460 
    Adjusted Revenue on a fully taxable equivalent basis$90,742  $90,513  $81,310  $84,526  $83,851  $347,091  $323,538 
    Adjusted Efficiency Ratio 53.43%  51.50%  53.49%  51.99%  48.75%  52.59%  51.63%
                  
    Net Interest Income$72,289  $71,324  $65,802  $66,610  $68,791  $276,025  $262,743 
    Impact of FTE adjustment 123   131   131   131   112   516   460 
    Net Interest Income including FTE adjustment$72,412  $71,455  $65,933  $66,741  $68,903  $276,541  $263,203 
    Total noninterest income 18,706   19,028   15,322   17,671   14,930   70,727   61,570 
    Total noninterest expense 50,263   55,268   45,784   46,120   43,681   197,435   185,552 
    Pre-Tax Pre-Provision Earnings$40,855  $35,215  $35,471  $38,292  $40,152  $149,833  $139,221 
    Total Adjustments to Noninterest Income (376)  30   55   114   18   (177)  (1,235)
    Total Adjustments to Noninterest Expense (1,779)  (8,656)  (2,294)  (2,176)  (2,801)  (14,905)  (18,504)
    Adjusted Pre-Tax Pre-Provision Earnings$42,258  $43,901  $37,820  $40,582  $42,971  $164,561  $156,490 
                  
    Average Assets$10,061,382  $9,753,734  $9,025,846  $8,485,354  $8,376,396  $9,337,054  $7,860,000 
    Less average goodwill and intangible assets (267,692)  (254,980)  (235,964)  (237,323)  (238,631)  (249,089)  (231,267)
    Average Tangible Assets$9,793,690  $9,498,754  $8,789,882  $8,248,031  $8,137,765  $9,087,965  $7,628,733 
                  
    Return on Average Assets (ROA) 1.43%  0.93%  1.40%  1.61%  1.39%  1.33%  0.99%
    Impact of removing average intangible assets and related amortization 0.08   0.07   0.08   0.09   0.10   0.08   0.09 
    Return on Average Tangible Assets (ROTA) 1.51   1.00   1.48   1.70   1.49   1.41   1.08 
    Impact of other adjustments for Adjusted Net Income (0.02)  0.23   0.04   0.05   0.01   0.07   0.09 
    Adjusted Return on Average Tangible Assets 1.49   1.23   1.52   1.75   1.50   1.48   1.17 
                  
    Average Shareholders' Equity$1,303,686  $1,248,547  $1,170,395  $1,136,416  $1,111,073  $1,215,312  $1,045,219 
    Less average goodwill and intangible assets (267,692)  (254,980)  (235,964)  (237,323)  (238,631)  (249,089)  (231,267)
    Average Tangible Equity$1,035,994  $993,567  $934,431  $899,093  $872,442  $966,223  $813,952 
                  
    Return on Average Shareholders' Equity 11.06%  7.29%  10.76%  12.03%  10.51%  10.24%  7.44%
    Impact of removing average intangible assets and related amortization 3.23   2.27   3.12   3.59   3.36   3.03   2.66 
    Return on Average Tangible Common Equity (ROTCE) 14.29   9.56   13.88   15.62   13.87   13.27   10.10 
    Impact of other adjustments for Adjusted Net Income (0.18)  2.16   0.39   0.39   0.13   0.70   0.83 
    Adjusted Return on Average Tangible Common Equity  14.11   11.72   14.27   16.01   14.00   13.97   10.93 
                  
    Loan interest income1$64,487  $64,517  $60,440  $62,390  $65,684  $251,834  $254,710 
    Accretion on acquired loans (3,520)  (3,483)  (2,886)  (2,868)  (4,448)  (12,757)  (14,977)
    Interest and fees on PPP loans (3,352)  (5,917)  (5,127)  (6,886)  (5,187)  (21,282)  (11,974)
    Loan interest income excluding PPP and accretion on acquired loans$57,615  $55,117  $52,427  $52,636  $56,049  $217,795  $227,759 
                  
    Yield on loans1 4.31   4.49   4.33   4.39   4.42   4.38   4.49 
    Impact of accretion on acquired loans (0.24)  (0.24)  (0.21)  (0.20)  (0.30)  (0.22)  (0.27)
    Impact of PPP loans (0.13)  (0.22)  0.01   (0.04)  0.11   (0.10)  0.11 
    Yield on loans excluding PPP and accretion on acquired loans 3.94%  4.03%  4.13%  4.15%  4.23%  4.06%  4.33%
                  
    Net Interest Income1$72,412  $71,455  $65,933  $66,741  $68,903  $276,541  $263,203 
    Accretion on acquired loans (3,520)  (3,483)  (2,886)  (2,868)  (4,448)  (12,757)  (14,977)
    Interest and fees on PPP loans (3,352)  (5,917)  (5,127)  (6,886)  (5,187)  (21,282)  (11,974)
    Net interest income excluding PPP and accretion on acquired loans$65,540  $62,055  $57,920  $56,987  $59,268  $242,502  $236,252 
                  
    Net Interest Margin 3.16   3.22   3.23   3.51   3.59   3.27   3.65 
    Impact of accretion on acquired loans (0.15)  (0.15)  (0.14)  (0.15)  (0.23)  (0.15)  (0.21)
    Impact of PPP loans (0.10)  (0.18)  (0.06)  (0.11)  0.01   (0.11)  0.03 
    Net interest margin excluding PPP and accretion on acquired loans 2.91%  2.89%  3.03%  3.25%  3.37%  3.01%  3.47%
                  
    Security interest income1$8,750  $7,956  $6,745  $6,485  $6,586  $29,936  $30,288 
    Tax equivalent adjustment on securities (37)  (38)  (39)  (39)  (23)  (153)  (116)
    Security interest income excluding tax equivalent adjustment$8,713  $7,918  $6,706  $6,446  $6,563  $29,783  $30,172 
                  
    Loan interest income1$64,487  $64,517  $60,440  $62,390  $65,684  $251,834  $254,710 
    Tax equivalent adjustment on loans (86)  (93)  (92)  (92)  (89)  (363)  (344)
    Loan interest income excluding tax equivalent adjustment$64,401  $64,424  $60,348  $62,298  $65,595  $251,471  $254,366 
                  
    Net Interest Income1$72,412  $71,455  $65,933  $66,741  $68,903  $276,541  $263,203 
    Tax equivalent adjustment on securities (37)  (38)  (39)  (39)  (23)  (153)  (116)
    Tax equivalent adjustment on loans (86)  (93)  (92)  (92)  (89)  (363)  (344)
    Net interest income excluding tax equivalent adjustment$72,289  $71,324  $65,802  $66,610  $68,791  $276,025  $262,743 
                  
    1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.

     


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