• Seacoast Reports Fourth Quarter and Full Year 2020 Results

    المصدر: Nasdaq GlobeNewswire / 28 يناير 2021 15:02:27   America/Chicago

    STUART, Fla., Jan. 28, 2021 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the fourth quarter of 2020 of $29.3 million, or $0.53 per diluted share, an increase of 30% compared to the third quarter of 2020. Adjusted net income1 for the fourth quarter of 2020 was $30.7 million, or $0.55 per diluted share, an increase of 12% compared to the third quarter of 2020. The ratio of tangible common equity to tangible assets was 11.01%, tangible book value per share increased to $16.16 and Tier 1 capital increased to 17.4%. For the full year 2020, net income was $77.8 million, or $1.44 per diluted share, compared to $98.7 million, or $1.90 per diluted share, in 2019. For the full year 2020, adjusted net income1 was $89.0 million, or $1.65 per diluted share, compared to $104.6 million, or $2.01 per diluted share, in 2019.

    For the fourth quarter of 2020, return on average tangible assets was 1.49%, return on average tangible shareholders' equity was 13.87%, and the efficiency ratio was 48.23%, compared to 1.20%, 11.35%, and 61.65%, respectively, in the prior quarter. For the year ended December 31, 2020, return on average tangible assets was 1.08%, return on average tangible shareholder's equity was 10.10% and the efficiency ratio was 54.84% compared to 1.56%, 14.72% and 51.71%, respectively, for the year ended December 31, 2019.

    Adjusted return on average tangible assets1 in the fourth quarter of 2020 was 1.50%, adjusted return on average tangible shareholders' equity1 was 14.00%, and the adjusted efficiency ratio1 was 48.75%, compared to 1.38%, 13.06%, and 54.82%, respectively, in the prior quarter. For the year ended December 31, 2020, adjusted return on average tangible assets1 was 1.17%, adjusted return on average tangible shareholder's equity1 was 10.93% and the adjusted efficiency ratio1 was 51.63% compared to 1.58%, 14.93% and 50.90%, respectively, for the year ended December 31, 2019.

    Dennis S. Hudson, Seacoast's Executive Chairman, said, "We wrapped up an unprecedented year with strong performance in the fourth quarter. We continued to generate disciplined growth and delivered continued improvements in operating leverage. I am extremely proud of our team's performance this year as they successfully navigated the effects of the pandemic and continued to produce excellent results, ending 2020 with fourth quarter earnings exceeding the same quarter in the prior year, including achieving an efficiency ratio below 50%. Looking back over my time as CEO here at Seacoast, I am reminded of the many occasions our team has risen to the challenges of the day, which helped create an organization and culture that continues to grow stronger and more resilient. This team and our fortress balance sheet will continue to support the successful execution of our strategic priorities in 2021 and beyond under Chuck's capable leadership."

    Charles M. Shaffer, Seacoast's President and CEO, said, "We continue to steadily build shareholder value through consistent growth in our tangible book value per share, which ended the period at $16.16, an increase of 15% during the quarter on an annualized basis. The tangible common equity ratio of 11% supports our ability to deploy capital for organic growth and opportunistic acquisitions. Seacoast is committed to maintaining its fortress balance sheet, built around strong capital and strict credit underwriting. Our goal remains to continue increasing market share in a disciplined manner by cultivating value-creating relationships, improving digital customer experiences, and driving greater productivity across the franchise by delivering products and services to our markets more efficiently than our competitors."

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

    Financial Results

    Income Statement

    • Net income was $29.3 million, or $0.53 per diluted share for the fourth quarter of 2020, compared to $22.6 million, or $0.42, for the prior quarter. For the year ended December 31, 2020, net income was $77.8 million, or $1.44 per diluted share, compared to $98.7 million, or $1.90, for the year ended December 31, 2019. Adjusted net income1 was $30.7 million, or $0.55 per diluted share for the fourth quarter of 2020, compared to $27.3 million, or $0.50, for the prior quarter. For the year ended December 31, 2020, adjusted net income1 was $89.0 million, or $1.65 per diluted share, compared to $104.6 million, or $2.01, for the year ended December 31, 2019.
    • Net revenues were $83.7 million in the fourth quarter of 2020, an increase of $3.3 million, or 4%, compared to the prior quarter. For the year ended December 31, 2020, net revenues were $324.3 million, an increase of $24.0 million, or 8%, compared to the year ended December 31, 2019. Adjusted revenues1 were $83.7 million in the fourth quarter of 2020, an increase of $3.3 million, or 4%, from the prior quarter. For the year ended December 31, 2020, adjusted revenues1 were $323.1 million, an increase of $24.9 million, or 8%, compared to the year ended December 31, 2019.
    • Net interest income totaled $68.8 million in the fourth quarter of 2020, an increase of $5.3 million, or 8%, from the prior quarter. For the year ended December 31, 2020, net interest income was $262.7 million, an increase of $19.1 million, or 8%, compared to the year ended December 31, 2019. During the fourth quarter of 2020, net interest income included $5.2 million in interest and fees earned on Paycheck Protection Program ("PPP") loans compared to $1.7 million in the third quarter of 2020. Lower PPP loan fees in the third quarter resulted from a calculation change to align fee recognition with the contractual maturity of the loans. Loan forgiveness began in the fourth quarter of 2020, resulting in accelerated recognition of $1.5 million in PPP loan fees. The remaining $9.5 million in deferred PPP loan fees will be recognized over the loans' remaining contractual maturity or, if sooner, as loans are forgiven.
    • Net interest margin was 3.59% in the fourth quarter of 2020, compared to 3.40% in the third quarter of 2020. PPP loans negatively affected the net interest margin by one basis point in the fourth quarter of 2020. In the third quarter of 2020, which was impacted by a change in the fee recognition schedule, PPP loans negatively affected net interest margin by 19 basis points. Accretion of purchase discounts on acquired loans increased net interest margin by 23 basis points in the fourth quarter of 2020, compared to 17 basis points in the third quarter. Excluding these items, net interest margin declined five basis points to 3.37%. The yield on loans, excluding PPP and accretion of purchase discount, increased one basis point. The yield on securities declined 39 basis points, reflecting continued interest rate resets, elevated prepayments and additional deployment of excess liquidity into securities in the fourth quarter. The cost of deposits decreased five basis points, from 24 basis points in the third quarter to 19 basis points in the fourth quarter, reflecting our continued repricing down of interest-bearing deposits and time deposits.
    • Noninterest income totaled $14.9 million in the fourth quarter of 2020, a decrease of $2.0 million, or 12%, compared to the prior quarter. For the year ended December 31, 2020, noninterest income was $61.6 million, an increase of $4.8 million, or 9%, compared to the year ended December 31, 2019. Results for the fourth quarter of 2020 included the following:
      • Mortgage banking fees were $3.6 million, compared to a record $5.3 million in the prior quarter. Low interest rates continued to fuel refinance demand in the fourth quarter, though at lower levels than in the prior quarter, while the Florida housing market remains strong and continues to benefit from the inflow of new residents and businesses.
      • Interchange revenue was $3.6 million, compared to a record $3.7 million in the third quarter of 2020. In 2020, Seacoast customers used their debit cards at an accelerated pace, driving record interchange results for the year that exceeded pre-pandemic levels.
      • Service charges on deposits increased $0.2 million compared to the third quarter of 2020. Service charges remain lower than pre-pandemic levels, the result of higher average deposit balances for both business and consumer customers.
      • Wealth management income was $1.9 million compared to a record $2.0 million in the third quarter of 2020. A determined and consistent focus on building new relationships and providing exceptional service continues to generate growth in assets under management, with a 33% increase from prior year to $870 million at December 31, 2020. Most of the fourth quarter new production came late in the quarter, so the benefit will be reflected fully in our 2021 financial results.
    • Seacoast recorded a provision for credit losses of $1.9 million in the fourth quarter of 2020, compared to a $0.8 million reversal in the prior quarter. The ratio of allowance for credit losses to total loans was 1.62% at December 31, 2020, compared to 1.60% at September 30, 2020. Excluding PPP loans, the ratio was 1.79% at December 31, 2020, compared to 1.80% at September 30, 2020.
    • Noninterest expense was $43.7 million in the fourth quarter of 2020, a decrease of $8.0 million, or 15%, compared to the prior quarter. For the year ended December 31, 2020, noninterest expense was $185.6 million, an increase of $24.8 million, or 15%, compared to the year ended December 31, 2019. Changes from the third quarter of 2020 consisted of the following:
      • Salaries and wages decreased by $1.6 million, or 7%. In the fourth quarter, accelerated commercial loan production resulted in higher deferrals of related salary costs, in accordance with ASC 310-20. This was partially offset by $0.3 million in severance related to a targeted staff reduction. The third quarter included $0.6 million in expenses associated with the acquisition of Freedom Bank.
      • Data processing costs decreased by $1.9 million, or 31%, the result of Freedom Bank merger-related costs incurred in the third quarter.
      • Lower occupancy expenses reflect charges in the third quarter of 2020 associated with the consolidation of one branch location. Three additional branch consolidations are expected in the first quarter of 2021.
      • Furniture and equipment decreased by $0.3 million, or 16%, reflecting the impact of equipment disposals associated with the Freedom Bank acquisition completed during the third quarter.
      • Marketing expense decreased by $0.5 million, or 31%, the result of higher expenses in the third quarter associated with a marketing campaign.
      • Legal and professional fees decreased by $2.5 million, or 83% from the third quarter. Third quarter 2020 results include $1.3 million in merger-related costs. The remainder of the decrease in the fourth quarter relates to the one-time recovery of certain legal expenses incurred during 2020.
      • Foreclosed property expense increased in the fourth quarter of 2020 by $1.3 million, largely the result of write-downs on two properties upon receipt of updated valuations.
      • A release of reserves for unfunded commitments resulted in a benefit of $0.8 million in the fourth quarter and reflects the impact of an improved economic outlook in specific loan segments associated with the reserve. Since the outbreak of COVID-19, the Company has not experienced any material increases in line utilization by its customers.
      • Other expenses decreased by $0.6 million, or 14%, with comparably higher mortgage loan production-related expenses and higher executive recruiting fees in the third quarter.
    • Seacoast recorded $8.8 million of income tax expense in the fourth quarter of 2020, compared to $7.0 million in the prior quarter. Tax impacts related to stock-based compensation were nominal each period.
    • Adjusted revenues1 in the fourth quarter of 2020 increased 4% compared to the prior quarter while adjusted noninterest expense1 decreased 8%, generating 12% operating leverage.
    • The ratio of net adjusted noninterest expense1 to average tangible assets was 2.00% in the fourth quarter of 2020, compared to 2.24% in the prior quarter. Net adjusted noninterest expense1 in the fourth quarter of 2020 reflects the impact of increased commercial loan production, resulting in higher deferrals of related origination expenses.
    • The efficiency ratio was 48.2% compared to 61.6% in the prior quarter. The adjusted efficiency ratio1 was 48.8% compared to 54.8% in the prior quarter, reflecting the benefit of higher PPP fee accretion, a continued focus on disciplined expense control, and strong commercial loan production, resulting in higher deferrals of loan production related salary expenses.

    Balance Sheet

    • At December 31, 2020, the Company had total assets of $8.3 billion and total shareholders' equity of $1.1 billion. Book value per share was $20.46, and tangible book value per share was $16.16, compared to $19.91 and $15.57, respectively, on September 30, 2020. This reflects annualized growth in tangible book value per share of 15%.
    • Debt securities totaled $1.6 billion on December 31, 2020, an increase of $88.4 million compared to September 30, 2020. Purchases during the quarter were primarily in government-sponsored mortgage-backed securities with an average yield of 1.43%.
    • Loans totaled $5.7 billion on December 31, 2020, a decrease of $122.7 million, or 2%, compared to September 30, 2020. The decrease includes $71.8 million in PPP loan forgiveness in the fourth quarter of 2020. Seacoast continues to maintain strict underwriting and an overall conservative credit posture.
    • Loan originations were $541.0 million in the fourth quarter of 2020, compared to $346.7 million in the third quarter of 2020, an increase of 56%.
        •  Commercial originations during the fourth quarter of 2020 were $277.4 million, compared to $88.2 million in the third quarter of 2020. Seacoast continues to maintain conservative underwriting guidelines in the current economic environment, while extending credit to well-qualified customers.
        •  Residential loans originated for sale in the secondary market were $161.6 million in the fourth quarter of 2020, compared to $162.5 million in the third quarter of 2020. The residential lending team's continued focus on high-quality service levels to homebuyers, refinance customers, and local real estate professionals has allowed them to capitalize on a strong Florida housing market throughout the year.
        •  Closed residential loans retained in the portfolio totaled $54.5 million in the fourth quarter of 2020, compared to $25.4 million in the third quarter of 2020.
        •  Consumer originations in the fourth quarter of 2020 were $47.5 million, compared to $62.3 million in the third quarter of 2020.

      • Since the beginning of the pandemic, Seacoast has supported financially impacted borrowers by providing loan accommodations including the ability to defer payments. As of December 31, 2020, loans with payment accommodations totaled $74.1 million, or 1% of total loans excluding PPP, compared to $702.7 million, or 13%, at September 30, 2020.
    • Pipelines (loans in underwriting and approval or approved and not yet closed) totaled $302.0 million on December 31, 2020, a decrease of 34% from the third quarter of 2020.
      • Commercial pipelines were $166.7 million as of December 31, 2020, compared to $256.2 million as of the prior quarter end, in line with a seasonal trend of slower volumes in the first quarter.
      • Residential saleable pipelines were $92.0 million as of December 31, 2020, compared to $149.9 million as of the prior quarter end. Retained residential pipelines were $25.1 million as of December 31, 2020, compared to $33.4 million as of the prior quarter end. The declines quarter-over-quarter reflect a slowing refinance market.
      • Consumer pipelines were $18.2 million as of December 31, 2020, compared to $17.1 million as of the prior quarter-end.
    • Total deposits were $6.9 billion as of December 31, 2020, an increase of $17.7 million, compared to September 30, 2020.
      • The overall cost of deposits declined to 19 basis points in the fourth quarter of 2020 from 24 basis points in the prior quarter.
      • Total transaction account balances increased 39% year-over-year and, as a percentage of overall deposit funding, remained at 56%.
      • Interest-bearing deposits (interest-bearing demand, savings, and money market deposits) increased $314.0 million, or 9%, quarter-over-quarter to $3.8 billion, noninterest-bearing demand deposits decreased $111.0 million, or 5%, to $2.3 billion, and CDs (excluding brokered) decreased $38.1 million, or 6%, to $597.3 million.
      • As of December 31, 2020, deposits per banking center were $136 million, compared to $116 million on December 31, 2019.

    Asset Quality

    • Nonperforming loans decreased by $0.8 million to $36.1 million at December 31, 2020. Nonperforming loans to total loans outstanding were 0.63% at December 31, 2020, 0.63% at September 30, 2020, and 0.52% at December 31, 2019.
    • Nonperforming assets to total assets decreased by five basis points to 0.59% at December 31, 2020, compared to 0.64% at September 30, 2020 and 0.55% at December 31, 2019.
    • The ratio of allowance for credit losses to total loans was 1.62% at December 31, 2020, 1.60% at September 30, 2020, and 0.68% at December 31, 2019. The Company has assigned no allowance for credit losses to PPP loans, as the United States government contractually guarantees repayment for such loans. Excluding PPP loans, the ratio of allowance for credit losses to total loans at December 31, 2020, was 1.79%, compared to 1.80% at September 30, 2020.
    • Net charge-offs were $3.1 million, or 0.21% of average loans for the fourth quarter of 2020 compared to $1.7 million, or 0.12% of average loans in the third quarter of 2020 and $3.2 million, or 0.25% of average loans in the fourth quarter of 2019. Charge-offs in the fourth quarter of 2020 were primarily from a small number of commercial loans, none of which individually exceeded $0.6 million. Net charge-offs for the four most recent quarters averaged 0.13%.
    • 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 $399,000, reflecting an ability to maintain granularity within the overall loan portfolio.
    • The Company does not have any purchased loan syndications, shared national credits, or mezzanine finance.
    • Since the outbreak of COVID-19, the Company has not experienced any material increase in consumer or commercial line utilization.
    • Construction and land development and commercial real estate loans remain well below regulatory guidance at 26% and 169% of total bank-level risk based capital, respectively, compared to 30% and 176% respectively, in the third quarter of 2020. On a consolidated basis, construction and land development and commercial real estate loans represent 24% and 157%, respectively, of total consolidated risk-based capital.
    • As the trajectory of the economic recovery remains unclear as the negative impact of COVID-19 continues and further fiscal stimulus is uncertain, Seacoast will remain vigilant in maintaining its conservative credit posture in 2021.

    Capital and Liquidity

    • The tier 1 capital ratio increased to 17.4% from 16.8% at September 30, 2020, and 15.0% December 31, 2019. The total capital ratio was 18.5% and the tier 1 leverage ratio was 11.9% at December 31, 2020.
    • Tangible common equity to tangible assets was 11.01% at December 31, 2020, compared to 10.67% at September 30, 2020 and 11.05% at December 31, 2019.
    • Cash and cash equivalents at December 31, 2020 totaled $404.1 million, an increase of $279.6 million from December 31, 2019, as Seacoast maintained a prudent liquidity position.
    • At December 31, 2020, the Company had available unsecured lines of credit of $135.0 million and lines of credit under lendable collateral value of $1.8 billion. $1.2 billion of debt securities and $733.3 million in 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'20 3Q'20 2Q'20 1Q'20 4Q'19
    Selected Balance Sheet Data:         
    Total Assets$8,342,392  $8,287,840  $8,084,013  $7,352,894  $7,108,511 
    Gross Loans5,735,349  5,858,029  5,772,052  5,317,208  5,198,404 
    Total Deposits6,932,561  6,914,843  6,666,783  5,887,499  5,584,753 
              
    Performance Measures:         
    Net Income$29,347  $22,628  $25,080  $709  $27,176 
    Net Interest Margin3.59% 3.40% 3.70% 3.93% 3.84%
    Average Diluted Shares Outstanding55,739  54,301  53,308  52,284  52,081 
    Diluted Earnings Per Share (EPS)$0.53  $0.42  $0.47  $0.01  $0.52 
    Return on (annualized):         
    Average Assets (ROA)1.39% 1.11% 1.27% 0.04% 1.54%
    Average Tangible Assets (ROTA)21.49  1.20  1.37  0.11  1.66 
    Average Tangible Common Equity (ROTCE)213.87  11.35  13.47  0.95  14.95 
    Tangible Common Equity to Tangible Assets211.01  10.67  10.19  10.68  11.05 
    Tangible Book Value Per Share2$16.16  $15.57  $15.11  $14.42  $14.76 
    Efficiency Ratio48.23% 61.65% 50.11% 59.85% 48.36%
              
    Adjusted Operating Measures1:         
    Adjusted Net Income$30,700  $27,336  $25,452  $5,462  $26,837 
    Adjusted Diluted EPS0.55  0.50  0.48  0.10  0.52 
    Adjusted ROTA21.50% 1.38% 1.33% 0.32% 1.57%
    Adjusted ROTCE214.00  13.06  13.09  2.86  14.19 
    Adjusted Efficiency Ratio48.75  54.82  49.60  53.55  47.52 
    Net Adjusted Noninterest Expense as a
    Percent of Average Tangible Assets2    		2.00  2.24  2.11  2.46  2.11 
              
    Other Data:         
    Market capitalization3$1,626,913  $994,690  $1,081,009  $965,097  $1,574,775 
    Full-time equivalent employees965  968  924  919  867 
    Number of ATMs77  77  76  76  78 
    Full-service banking offices51  51  50  50  48 
    Registered online users123,615  121,620  117,273  113,598  109,684 
    Registered mobile devices115,129  110,241  108,062  104,108  99,361 
    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 Strategic Highlights

    • For the third consecutive year, Seacoast has been recognized as one of Fortune Magazine's 100 Fastest-Growing Companies. As the only financial institution headquartered in Florida to earn a spot on the prestigious list, this distinction is a direct reflection of the remarkable job the Seacoast team has done serving customers, implementing technological improvements, and executing our balanced growth strategy.
    • Seacoast's successful combination of organic growth with value-creating acquisitions continued to benefit shareholders and associates in 2020 with the acquisitions of First Bank of Palm Beaches and Freedom Bank. Both acquisitions added experienced bankers while expanding our presence in attractive growth markets, further supporting sustainable, profitable growth.

    • Capitalizing on Seacoast's Early Commitment to Digital Transformation

    • Digital adoption and usage remain strong. Registered mobile devices have increased 16% in 2020, and online users have increased 13%. Growth is coming from both consumer and business customers utilizing the convenience of mobile and online channels.
    • Approximately 51% of all deposit transactions were completed outside of the branch network during 2020, an increase of 11% compared to 2019. Routine transactions continue to migrate from the branch network to lower cost channels.
    • Seacoast and its customers are benefiting from our automated PPP forgiveness solution that streamlines the process for clients while integrating with Seacoast's existing technology infrastructure. In the fourth quarter of 2020, $71.8 million in loan forgiveness was processed. In January 2021, the Company began accepting applications for the re-opening of the PPP lending program on our fully digital origination platform. As of January 27, the Company had received approximately 1,500 applications for $170 million under the latest round of PPP.
    • As customer preferences change, Seacoast continues to evolve its branch footprint by redirecting capacity into attractive growth markets. In alignment with this strategy, we expect to consolidate three additional branch locations in the first quarter of 2021.

    Scaling and Evolving Our Culture

    • Seacoast’s "Manager Excellence" training program was recently recognized by American Banker, which named Seacoast one of 2020's Best Banks to Work For. Providing first-time managers and emerging leaders with skill development and ongoing support creates an environment for our associates to recognize and pursue rewarding career opportunities.
    • The Company continues to recruit and acquire strong commercial banking talent. During the fourth quarter of 2020, Seacoast welcomed a team of commercial bankers and credit talent from Wells Fargo in Central Florida. Additionally, in early January 2021, the Company hired Ron York as Treasury Management Executive, formerly with First Horizon Bank.

    OTHER INFORMATION

    Conference Call Information
    Seacoast will host a conference call on January 29, 2021 at 10:00 a.m. (Eastern Time) to discuss the fourth quarter and year end 2020 earnings results and business trends. Investors may call in (toll-free) by dialing (800) 774-6070 (passcode 5585 590#; host Chuck 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 of January 29, 2021, by clicking here and using passcode 50062311.

    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 the afternoon of January 29, 2021, 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 is one of the largest community banks headquartered in Florida with approximately $8.3 billion in assets and $6.9 billion in deposits as of December 31, 2020. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, and 51 traditional branches of its locally-branded, wholly-owned subsidiary bank, Seacoast Bank. Offices stretch from Fort Lauderdale, Boca Raton and West Palm Beach north through the Daytona Beach area, into Orlando and Central Florida and the adjacent Tampa market, and west to Okeechobee and surrounding counties. More information about the Company is available at 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, 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, 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 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; 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 and successfully acquire desirable financial institutions; 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.

    Given the many unknowns and risks being heavily weighted to the downside, our forward-looking statements are subject to the risk that conditions will be substantially different than we are currently expecting. If efforts to contain COVID-19 are unsuccessful and restrictions on movement last into 2021 and beyond, the recession would be much longer and much more severe. Ineffective fiscal stimulus, or an extended delay in implementing it, are also major downside risks. The deeper the recession is, and the longer it lasts, the more it will damage consumer fundamentals and sentiment. This could both prolong the recession, and/or make any recovery weaker. Similarly, the recession could damage business fundamentals. And an extended global recession due to COVID-19 would weaken the U.S. recovery. As a result, the outbreak and its consequences, including responsive measures to manage it, have had and are likely to continue to have an adverse effect, possibly materially, on our business and financial performance by adversely affecting, possibly materially, the demand and profitability of our products and services, the valuation of assets and our ability to meet the needs of our customers.

    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, 2019, and our quarterly reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020 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

    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'20 3Q'20 2Q'20 1Q'20 4Q'19 4Q'20 4Q'19
                  
    Summary of Earnings             
    Net income$29,347  $22,628  $25,080  $709  $27,176  $77,764  $98,739 
    Adjusted net income130,700  27,336  25,452  5,462  26,837  88,950  104,591 
    Net interest income268,903  63,621  67,388  63,291  61,846  263,203  243,953 
    Net interest margin2,33.59% 3.40% 3.70% 3.93% 3.84% 3.65% 3.92%
                  
    Performance Ratios             
    Return on average assets-GAAP basis31.39% 1.11% 1.27% 0.04% 1.54% 0.99% 1.45%
    Return on average tangible assets-GAAP basis3,41.49  1.20  1.37  0.11  1.66  1.08  1.56 
    Adjusted return on average tangible assets1,3,41.50  1.38  1.33  0.32  1.57  1.17  1.58 
    Net adjusted noninterest expense to average tangible assets1,3,42.00  2.24  2.11  2.46  2.11  2.19  2.30 
                  
    Return on average shareholders' equity-GAAP basis310.51  8.48  9.96  0.29  11.04  7.44  10.63 
    Return on average tangible common equity-GAAP basis3,413.87  11.35  13.47  0.95  14.95  10.10  14.72 
    Adjusted return on average tangible common equity1,3,414.00  13.06  13.09  2.86  14.19  10.93  14.93 
    Efficiency ratio548.23  61.65  50.11  59.85  48.36  54.84  51.71 
    Adjusted efficiency ratio148.75  54.82  49.60  53.55  47.52  51.63  50.90 
    Noninterest income to total revenue (excluding securities gains/losses)17.85  21.06  17.00  18.84  18.30  18.68  18.56 
    Tangible common equity to tangible assets411.01  10.67  10.19  10.68  11.05  11.01  11.05 
    Average loan-to-deposit ratio84.48  87.83  88.48  93.02  90.71  88.20  89.21 
    End of period loan-to-deposit ratio83.72  85.77  87.40  90.81  93.44  83.72  93.44 
                  
    Per Share Data             
    Net income diluted-GAAP basis$0.53  $0.42  $0.47  $0.01  $0.52  $1.44  $1.90 
    Net income basic-GAAP basis0.53  0.42  0.47  0.01  0.53  1.45  1.92 
    Adjusted earnings10.55  0.50  0.48  0.10  0.52  1.65  2.01 
                  
    Book value per share common20.46  19.91  19.45  18.82  19.13  20.46  19.13 
    Tangible book value per share16.16  15.57  15.11  14.42  14.76  16.16  14.76 
    Cash dividends declared—  —  —  —  —  —  — 
                  
                  
    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'20 3Q'20 2Q'20 1Q'20 4Q'19 4Q'20 4Q'19
                  
    Interest on securities:             
    Taxable$6,477  $6,972  $7,573  $8,696  $8,500  $29,718  $35,354 
    Nontaxable86  125  121  122  130  454  555 
    Fees on PPP loans3,603  161  4,010  —  —  7,774  — 
    Interest on PPP loans1,585  1,558  1,058  —  —  4,201  — 
    Interest and fees on loans - excluding PPP loans60,407  58,768  59,776  63,440  62,868  242,391  250,535 
    Interest on federal funds sold and other investments523  556  684  734  788  2,497  3,379 
    Total Interest Income72,681  68,140  73,222  72,992  72,286  287,035  289,823 
                  
    Interest on deposits1,228  1,299  1,203  3,190  3,589  6,920  16,621 
    Interest on time certificates2,104  2,673  3,820  4,768  5,084  13,365  21,776 
    Interest on borrowed money558  665  927  1,857  1,853  4,007  7,808 
    Total Interest Expense3,890  4,637  5,950  9,815  10,526  24,292  46,205 
                  
    Net Interest Income68,791  63,503  67,272  63,177  61,760  262,743  243,618 
    Provision for credit losses1,900  (845) 7,611  29,513  4,800  38,179  10,999 
    Net Interest Income After Provision for Credit Losses66,891  64,348  59,661  33,664  56,960  224,564  232,619 
                  
    Noninterest income:             
    Service charges on deposit accounts2,423  2,242  1,939  2,825  2,960  9,429  11,529 
    Interchange income3,596  3,682  3,187  3,246  3,387  13,711  13,399 
    Wealth management income1,949  1,972  1,719  1,867  1,579  7,507  6,352 
    Mortgage banking fees3,646  5,283  3,559  2,208  1,514  14,696  6,490 
    Marine finance fees145  242  157  146  338  690  1,053 
    SBA gains113  252  181  139  576  685  2,472 
    BOLI income889  899  887  886  904  3,561  3,674 
    Other2,187  2,370  2,147  3,352  2,579  10,056  10,546 
     14,948  16,942  13,776  14,669  13,837  60,335  55,515 
    Securities gains (losses), net(18) 4  1,230  19  2,539  1,235  1,217 
    Total Noninterest Income14,930  16,946  15,006  14,688  16,376  61,570  56,732 
                  
    Noninterest expenses:             
    Salaries and wages21,490  23,125  20,226  23,698  17,263  88,539  73,829 
    Employee benefits3,915  3,995  3,379  4,255  3,323  15,544  13,697 
    Outsourced data processing costs4,233  6,128  4,059  4,633  3,645  19,053  15,077 
    Telephone / data lines774  705  791  714  651  2,984  2,958 
    Occupancy3,554  3,858  3,385  3,353  3,368  14,150  14,284 
    Furniture and equipment1,317  1,576  1,358  1,623  1,416  5,874  6,245 
    Marketing1,045  1,513  997  1,278  885  4,833  4,161 
    Legal and professional fees509  3,018  2,277  3,363  2,025  9,167  8,553 
    FDIC assessments528  474  266  —  —  1,268  881 
    Amortization of intangibles1,421  1,497  1,483  1,456  1,456  5,857  5,826 
    Foreclosed property expense and net loss/(gain) on sale1,821  512  245  (315) 3  2,263  51 
    Provision for credit losses on unfunded commitments(795) 756  178  46  —  185  — 
    Other3,869  4,517  3,755  3,694  4,022  15,835  15,177 
    Total Noninterest Expense43,681  51,674  42,399  47,798  38,057  185,552  160,739 
                  
    Income Before Income Taxes38,140  29,620  32,268  554  35,279  100,582  128,612 
    Income taxes8,793  6,992  7,188  (155) 8,103  22,818  29,873 
                  
    Net Income$29,347  $22,628  $25,080  $709  $27,176  $77,764  $98,739 
                  
    Per share of common stock:             
                  
    Net income diluted$0.53  $0.42  $0.47  $0.01  $0.52  $1.44  $1.90 
    Net income basic0.53  0.42  0.47  0.01  0.53  1.45  1.92 
    Cash dividends declared—  —  —  —  —  —  — 
                  
    Average diluted shares outstanding55,739  54,301  53,308  52,284  52,081  53,930  52,029 
    Average basic shares outstanding55,219  53,978  52,985  51,803  51,517  53,502  51,449 
                  


    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) 2020 2020 2020 2020 2019
               
    Assets          
    Cash and due from banks $86,630  $81,692  $84,178  $82,111  $89,843 
    Interest bearing deposits with other banks 317,458  227,876  440,142  232,763  34,688 
    Total Cash and Cash Equivalents 404,088  309,568  524,320  314,874  124,531 
               
    Time deposits with other banks 750  2,247  2,496  3,742  3,742 
               
    Debt Securities:          
    Available for sale (at fair value) 1,398,157  1,286,858  976,025  910,311  946,855 
    Held to maturity (at amortized cost) 184,484  207,376  227,092  252,373  261,369 
    Total Debt Securities 1,582,641  1,494,234  1,203,117  1,162,684  1,208,224 
               
    Loans held for sale 68,890  73,046  54,943  29,281  20,029 
               
    Loans 5,735,349  5,858,029  5,772,052  5,317,208  5,198,404 
    Less: Allowance for credit losses (92,733) (94,013) (91,250) (85,411) (35,154)
    Net Loans 5,642,616  5,764,016  5,680,802  5,231,797  5,163,250 
               
    Bank premises and equipment, net 75,117  76,393  69,041  71,540  66,615 
    Other real estate owned 12,750  15,890  15,847  14,640  12,390 
    Goodwill 221,176  221,176  212,146  212,085  205,286 
    Other intangible assets, net 16,745  18,163  17,950  19,461  20,066 
    Bank owned life insurance 131,776  130,887  127,954  127,067  126,181 
    Net deferred tax assets 23,629  25,503  21,404  19,766  16,457 
    Other assets 162,214  156,717  153,993  145,957  141,740 
    Total Assets $8,342,392  $8,287,840  $8,084,013  $7,352,894  $7,108,511 
               
    Liabilities and Shareholders' Equity          
    Liabilities          
    Deposits          
    Noninterest demand $2,289,787  $2,400,744  $2,267,435  $1,703,628  $1,590,493 
    Interest-bearing demand 1,566,069  1,385,445  1,368,146  1,234,193  1,181,732 
    Savings 689,179  655,072  619,251  554,836  519,152 
    Money market 1,556,370  1,457,078  1,232,892  1,124,378  1,108,363 
    Other time certificates 425,878  457,964  445,176  489,669  504,837 
    Brokered time certificates 233,815  381,028  572,465  597,715  472,857 
    Time certificates of more than $250,000 171,463  177,512  161,418  183,080  207,319 
    Total Deposits 6,932,561  6,914,843  6,666,783  5,887,499  5,584,753 
               
    Securities sold under agreements to repurchase 119,609  89,508  92,125  64,723  86,121 
    Federal Home Loan Bank borrowings —  35,000  135,000  265,000  315,000 
    Subordinated debt 71,365  71,295  71,225  71,155  71,085 
    Other liabilities 88,455  78,853  88,277  72,730  65,913 
    Total Liabilities 7,211,990  7,189,499  7,053,410  6,361,107  6,122,872 
               
    Shareholders' Equity          
    Common stock 5,524  5,517  5,299  5,271  5,151 
    Additional paid in capital 856,092  854,188  811,328  809,533  786,242 
    Retained earnings 256,701  227,354  204,719  179,646  195,813 
    Treasury stock (8,285) (7,941) (8,037) (7,422) (6,032)
      1,110,032  1,079,118  1,013,309  987,028  981,174 
    Accumulated other comprehensive income, net 20,370  19,223  17,294  4,759  4,465 
    Total Shareholders' Equity 1,130,402  1,098,341  1,030,603  991,787  985,639 
    Total Liabilities & Shareholders' Equity $8,342,392  $8,287,840  $8,084,013  $7,352,894  $7,108,511 
               
    Common shares outstanding 55,243  55,169  52,991  52,709  51,514 
               


    CONSOLIDATED QUARTERLY FINANCIAL DATA(Unaudited)
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
      
      
              
    (Amounts in thousands)4Q'20 3Q'20 2Q'20 1Q'20 4Q'19
              
    Credit Analysis         
    Net charge-offs - non-acquired loans$3,028  $1,112  $1,714  $1,316   $2,930 
    Net charge-offs (recoveries) - acquired loans99  624  37  (343)  295 
    Total Net Charge-offs 3,127  1,736  1,751  973   3,225 
              
    Net charge-offs to average loans - non-acquired loans0.20% 0.08% 0.12% 0.10 % 0.23%
    Net charge-offs (recoveries) to average loans - acquired loans0.01  0.04  —  (0.03)  0.02 
    Total Net Charge-offs to Average Loans0.21  0.12  0.12  0.07   0.25 
              
    Allowance for credit losses - non-acquired loans$69,786  $70,388  $73,587  $69,498   $34,573 
    Allowance for credit losses - acquired loans22,947  23,625  17,663  15,913   581 
    Total Allowance for Credit Losses$92,733  $94,013  $91,250  $85,411   $35,154 
              
    Non-acquired loans at end of period$4,196,205  $4,157,376  $4,315,892  $4,373,378   $4,317,919 
    Acquired loans at end of period972,183  1,061,853  879,710  943,830   880,485 
    Paycheck Protection Program loans at end of period1566,961  638,800  576,450  —   — 
    Total Loans$5,735,349  $5,858,029  $5,772,052  $5,317,208   $5,198,404 
              
    Non-acquired loans allowance for credit losses to non-acquired loans at end of period1.66% 1.69% 1.71% 1.59 % 0.80%
    Total allowance for credit losses to total loans at end of period1.62  1.60  1.58  1.61   0.68 
    Total allowance for credit losses to total loans, excluding PPP loans1.79  1.80  1.76  1.61   0.68 
    Purchase discount on acquired loans at end of period2.86  3.01  3.29  3.36   3.83 
              
    End of Period         
    Nonperforming loans$36,110  $36,897  $30,051  $25,582   $26,955 
    Other real estate owned10,182  12,299  10,967  11,048   5,549 
    Properties previously used in bank operations included in other real estate owned2,569  3,592  4,880  3,592   6,842 
    Total Nonperforming Assets$48,861  $52,788  $45,898  $40,222   $39,346 
              
    Accruing troubled debt restructures (TDRs)$4,182  $10,190  $10,338  $10,833   $11,100 
              
    Nonperforming Loans to Loans at End of Period0.63% 0.63% 0.52% 0.48 % 0.52%
    Nonperforming Assets to Total Assets at End of Period0.59  0.64  0.57  0.55   0.55 
              
     December 31, September 30, June 30, March 31, December 31,
    Loans2020 2020 2020 2020 2019
              
    Construction and land development$245,108  $280,610  $298,835  $295,405   $325,113 
    Commercial real estate - owner occupied1,141,310  1,125,460  1,076,650  1,082,893   1,034,963 
    Commercial real estate - non-owner occupied1,395,854  1,394,464  1,392,787  1,381,096   1,344,008 
    Residential real estate1,342,628  1,393,396  1,468,171  1,559,754   1,507,863 
    Commercial and financial854,753  833,083  757,232  796,038   778,252 
    Consumer188,735  192,216  201,927  202,022   208,205 
    Paycheck Protection Program566,961  638,800  576,450  —   — 
    Total Loans$5,735,349  $5,858,029  $5,772,052  $5,317,208   $5,198,404 
              
    13Q'20 includes $54 million in Paycheck Protection Program loans acquired from Freedom Bank
     


    AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1(Unaudited)
    SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
                      
                      
     4Q'20 3Q'20 4Q'19
     Average   Yield/ Average   Yield/ Average   Yield/
    (Amounts in thousands)Balance Interest Rate Balance Interest Rate Balance Interest Rate
                      
    Assets                 
    Earning assets:                 
    Securities:                 
    Taxable$1,496,536  $6,477  1.73% $1,322,160  $6,972  2.11% $1,179,843  $8,500  2.88%
    Nontaxable25,943  109  1.68  23,570  157  2.67  20,709  162  3.13 
    Total Securities1,522,479  6,586  1.73  1,345,730  7,129  2.12  1,200,552  8,662  2.89 
                      
    Federal funds sold and other investments197,379  523  1.05  239,511  556  0.92  84,961  788  3.68 
                      
    Loans excluding PPP loans5,276,224  60,497  4.56  5,242,776  58,854  4.47  5,104,272  62,922  4.89 
    PPP loans629,855  5,187  3.28  618,088  1,719  1.11  —  —  — 
    Total Loans5,906,079  65,684  4.42  5,860,864  60,573  4.11  5,104,272  62,922  4.89 
                      
    Total Earning Assets7,625,937  72,793  3.80  7,446,105  68,258  3.65  6,389,785  72,372  4.49 
                      
    Allowance for credit losses(93,148)     (92,151)     (34,072)    
    Cash and due from banks235,519      138,749      99,008     
    Premises and equipment76,001      72,572      67,485     
    Intangible assets238,631      228,801      226,060     
    Bank owned life insurance131,208      129,156      125,597     
    Other assets162,248      163,658      122,351     
                      
    Total Assets$8,376,396      $8,086,890      $6,996,214     
                      
    Liabilities and Shareholders' Equity                 
    Interest-bearing liabilities:                 
    Interest-bearing demand$1,458,299  $249  0.07% $1,364,947  $330  0.10% $1,190,681  $983  0.33%
    Savings672,864  166  0.10  648,319  170  0.10  528,771  422  0.32 
    Money market1,523,960  813  0.21  1,328,931  799  0.24  1,148,453  2,184  0.75 
    Time deposits911,091  2,104  0.92  1,051,316  2,673  1.01  1,078,297  5,084  1.87 
    Securities sold under agreements to repurchase101,665  42  0.16  90,357  40  0.18  73,693  226  1.22 
    Federal funds purchased and Federal Home Loan Bank borrowings15,978  80  1.99  93,913  181  0.77  181,134  845  1.85 
    Other borrowings71,321  436  2.43  71,258  444  2.48  71,045  782  4.37 
                      
    Total Interest-Bearing Liabilities4,755,178  3,890  0.33  4,649,041  4,637  0.40  4,272,074  10,526  0.98 
                      
    Noninterest demand2,424,523      2,279,584      1,680,734     
    Other liabilities85,622      96,458      67,206     
    Total Liabilities7,265,323      7,025,083      6,020,014     
                      
    Shareholders' equity1,111,073      1,061,807      976,200     
                      
    Total Liabilities & Equity$8,376,396      $8,086,890      $6,996,214     
                      
    Cost of deposits    0.19%     0.24%     0.61%
    Interest expense as a % of earning assets    0.20%     0.25%     0.65%
    Net interest income as a % of earning assets  $68,903  3.59%   $63,621  3.40%   $61,846  3.84%
                      
                      
    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, 2020 Twelve Months Ended December 31, 2019
     Average   Yield/ Average   Yield/
    (Amounts in thousands, except ratios)Balance Interest Rate Balance Interest Rate
                
    Assets           
    Earning assets:           
    Securities:           
    Taxable$1,277,441  $29,718  2.33% $1,176,842  $35,354  3.00%
    Nontaxable22,164  570  2.57  23,122  695  3.01 
    Total Securities1,299,605  30,288  2.33  1,199,964  36,049  3.00 
                
    Federal funds sold and other investments239,494  2,497  1.04  88,045  3,379  3.84 
                
    Loans excluding PPP loans5,259,653  242,736  4.62  4,933,518  250,730  5.08 
    PPP loans419,154  11,974  2.86  —  —  — 
    Total Loans5,678,807  254,710  4.49  4,933,518  250,730  5.08 
                
    Total Earning Assets7,217,906  287,495  3.98  6,221,527  290,158  4.66 
                
    Allowance for credit losses(81,858)     (33,465)    
    Cash and due from banks142,314      94,643     
    Premises and equipment71,846      69,142     
    Intangible assets231,267      228,042     
    Bank owned life insurance128,569      124,803     
    Other assets149,956      126,588     
                
    Total Assets$7,860,000      $6,831,280     
                
    Liabilities and Shareholders' Equity           
    Interest-bearing liabilities:           
    Interest-bearing demand$1,324,433  $1,710  0.13% $1,114,334  $4,025  0.36%
    Savings610,015  849  0.14  516,526  2,015  0.39 
    Money market1,294,629  4,361  0.34  1,164,938  10,581  0.91 
    Time deposits1,101,321  13,365  1.21  1,092,516  21,776  1.99 
    Securities sold under agreements to repurchase84,514  283  0.33  106,142  1,431  1.35 
    Federal funds purchased and Federal Home Loan Bank borrowings139,439  1,540  1.10  131,921  3,010  2.28 
    Other borrowings71,220  2,184  3.07  70,939  3,367  4.75 
                
    Total Interest-Bearing Liabilities4,625,571  24,292  0.53  4,197,316  46,205  1.10 
                
    Noninterest demand2,107,931      1,641,766     
    Other liabilities81,279      63,405     
    Total Liabilities6,814,781      5,902,487     
                
    Shareholders' equity1,045,219      928,793     
                
    Total Liabilities & Equity$7,860,000      $6,831,280     
                
    Cost of deposits    0.32%     0.69%
    Interest expense as a % of earning assets    0.34%     0.74%
    Net interest income as a % of earning assets  $263,203  3.65%   $243,953  3.92%
                
                
    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) 2020 2020 2020 2020 2019
               
    Customer Relationship Funding          
    Noninterest demand          
    Commercial $1,821,361  $1,973,494  $1,844,288  $1,336,352  $1,233,475 
    Retail 350,783  322,559  314,723  271,916  246,717 
    Public funds 90,973  70,371  74,674  71,029  85,122 
    Other 26,670  34,320  33,750  24,331  25,179 
    Total Noninterest Demand 2,289,787  2,400,744  2,267,435  1,703,628  1,590,493 
               
    Interest-bearing demand          
    Commercial 454,909  413,513  412,846  349,315  319,993 
    Retail 839,958  777,078  733,772  671,378  641,762 
    Public funds 271,202  194,854  221,528  213,500  219,977 
    Total Interest-Bearing Demand 1,566,069  1,385,445  1,368,146  1,234,193  1,181,732 
               
    Total transaction accounts          
    Commercial 2,276,270  2,387,007  2,257,134  1,685,667  1,553,468 
    Retail 1,190,741  1,099,637  1,048,495  943,294  888,479 
    Public funds 362,175  265,225  296,202  284,529  305,099 
    Other 26,670  34,320  33,750  24,331  25,179 
    Total Transaction Accounts 3,855,856  3,786,189  3,635,581  2,937,821  2,772,225 
               
    Savings 689,179  655,072  619,251  554,836  519,152 
               
    Money market          
    Commercial 611,623  634,697  586,416  487,759  494,803 
    Retail 661,311  613,532  579,126  572,785  553,075 
    Brokered 196,616  141,808  —  —  — 
    Public funds 86,820  67,041  67,350  63,834  60,485 
    Total Money Market 1,556,370  1,457,078  1,232,892  1,124,378  1,108,363 
               
    Brokered time certificates 233,815  381,028  572,465  597,715  472,857 
    Other time certificates 597,341  635,476  606,594  672,749  712,156 
      831,156  1,016,504  1,179,059  1,270,464  1,185,013 
    Total Deposits $6,932,561  $6,914,843  $6,666,783  $5,887,499  $5,584,753 
               
    Customer sweep accounts $119,609  $89,508  $92,125  $64,723  $86,121 
               

    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'20 3Q'20 2Q'20 1Q'20 4Q'19 4Q'20 4Q'19
                  
    Net Income$29,347   $22,628   $25,080   $709   $27,176   $77,764   $98,739  
                  
    Total noninterest income14,930   16,946   15,006   14,688   16,376   61,570   56,732  
    Securities (gains) losses, net18   (4)  (1,230)  (19)  (2,539)  (1,235)  (1,217) 
    BOLI benefits on death (included in other income)—   —   —   —   —   —   (956) 
    Total Adjustments to Noninterest Income18   (4)  (1,230)  (19)  (2,539)  (1,235)  (2,173) 
    Total Adjusted Noninterest Income14,948   16,942   13,776   14,669   13,837   60,335   54,559  
                  
    Total noninterest expense43,681   51,674   42,399   47,798   38,057   185,552   160,739  
    Merger related charges—   (4,281)  (240)  (4,553)  (634)  (9,074)  (969) 
    Amortization of intangibles(1,421)  (1,497)  (1,483)  (1,456)  (1,456)  (5,857)  (5,826) 
    Business continuity expenses—   —   —   (307)  —   (307)  (95) 
    Branch reductions and other expense initiatives(354)  (464)  —   —   —   (818)  (1,846) 
    Total Adjustments to Noninterest Expense(1,775)  (6,242)  (1,723)  (6,316)  (2,090)  (16,056)  (8,736) 
    Total Adjusted Noninterest Expense41,906   45,432   40,676   41,482   35,967   169,496   152,003  
                  
    Income Taxes8,793   6,992   7,188   (155)  8,103   22,818   29,873  
    Tax effect of adjustments440   1,530   121   1,544   (110)  3,635   1,846  
    Effect of change in corporate tax rate on deferred tax assets—   —   —   —   —   —   (1,135) 
    Total Adjustments to Income Taxes440   1,530   121   1,544   (110)  3,635   711  
    Adjusted Income Taxes9,233   8,522   7,309   1,389   7,993   26,453   30,584  
    Adjusted Net Income$30,700   $27,336   $25,452   $5,462   $26,837   $88,950   $104,591  
                  
    Earnings per diluted share, as reported$0.53   $0.42   $0.47   $0.01   $0.52   $1.44   $1.90  
    Adjusted Earnings per Diluted Share 0.55   0.50   0.48   0.10   0.52   1.65   2.01  
    Average diluted shares outstanding55,739   54,301   53,308   52,284   52,081   53,930   52,029  
                  
    Adjusted Noninterest Expense$41,906   $45,432   $40,676   $41,482   $35,967   $169,496   $152,003  
    Provision for credit losses on unfunded commitments795   (756)  (178)  (46)  —   (185)  —  
    Foreclosed property expense and net (loss)/gain on sale(1,821)  (512)  (245)  315   (3)  (2,263)  (51) 
    Net Adjusted Noninterest Expense$40,880   $44,164   $40,253   $41,751   $35,964   $167,048   $151,952  
                  
    Revenue$83,721   $80,449   $82,278   $77,865   $78,136   $324,313   $300,350  
    Total Adjustments to Revenue18   (4)  (1,230)  (19)  (2,539)  (1,235)  (2,173) 
    Impact of FTE adjustment112   118   116   114   86   460   335  
    Adjusted Revenue on a fully taxable equivalent basis$83,851   $80,563   $81,164   $77,960   $75,683   $323,538   $298,512  
    Adjusted Efficiency Ratio48.75 % 54.82 % 49.60 % 53.55 % 47.52 % 51.63 % 50.90 %
                  
    Net Interest Income$68,791   $63,503   $67,272   $63,177   $61,760   $262,743   $243,618  
    Impact of FTE adjustment112   118   116   114   86   460   335  
    Net Interest Income including FTE adjustment$68,903   $63,621   $67,388   $63,291   $61,846   $263,203   $243,953  
    Total noninterest income14,930   16,946   15,006   14,688   16,376   61,570   56,732  
    Total noninterest expense43,681   51,674   42,399   47,798   38,057   185,552   160,739  
    Pre-Tax Pre-Provision Earnings$40,152   $28,893   $39,995   $30,181   $40,165   $139,221   $139,946  
    Total Adjustments to Noninterest Income18   (4)  (1,230)  (19)  (2,539)  (1,235)  (2,173) 
    Total Adjustments to Noninterest Expense(2,801)  (7,510)  (2,146)  (6,047)  (2,093)  (18,504)  (8,787) 
    Adjusted Pre-Tax Pre-Provision Earnings$42,971   $36,399   $40,911   $36,209   $39,719   $156,490   $146,560  
                  
    Average Assets$8,376,396   $8,086,890   $7,913,002   $7,055,543   $6,996,214   $7,860,000   $6,831,280  
    Less average goodwill and intangible assets(238,631)  (228,801)  (230,871)  (226,712)  (226,060)  (231,267)  (228,042) 
    Average Tangible Assets$8,137,765   $7,858,089   $7,682,131   $6,828,831   $6,770,154   $7,628,733   $6,603,238  
                  
    Return on Average Assets (ROA)
    		1.39 % 1.11 % 1.27 % 0.04 % 1.54 % 0.99 % 1.45 %
    Impact of removing average intangible assets and related amortization0.10   0.09   0.10   0.07   0.12   0.09   0.11  
    Return on Average Tangible Assets (ROTA)1.49   1.20   1.37   0.11   1.66   1.08   1.56  
    Impact of other adjustments for Adjusted Net Income0.01   0.18   (0.04)  0.21   (0.09)  0.09   0.02  
    Adjusted Return on Average Tangible Assets1.50   1.38   1.33   0.32   1.57   1.17   1.58  
                  
    Average Shareholders' Equity$1,111,073   $1,061,807   $1,013,095   $993,993   $976,200   $1,045,219   $928,793  
    Less average goodwill and intangible assets(238,631)  (228,801)  (230,871)  (226,712)  (226,060)  (231,267)  (228,042) 
    Average Tangible Equity$872,442   $833,006   $782,224   $767,281   $750,140   $813,952   $700,751  
                  
    Return on Average Shareholders' Equity10.51 % 8.48 % 9.96 % 0.29 % 11.04 % 7.44 % 10.63 %
    Impact of removing average intangible assets and related amortization3.36   2.87   3.51   0.66   3.91   2.66   4.09  
    Return on Average Tangible Common Equity (ROTCE)13.87   11.35   13.47   0.95   14.95   10.10   14.72  
    Impact of other adjustments for Adjusted Net Income0.13   1.71   (0.38)  1.91   (0.76)  0.83   0.21  
    Adjusted Return on Average Tangible Common Equity 14.00   13.06   13.09   2.86   14.19   10.93   14.93  
                  
    Loan interest income1$65,684   $60,573   $64,929   $63,524   $62,922   $254,710   $250,730  
    Accretion on acquired loans(4,448)  (3,254)  (2,988)  (4,287)  (3,407)  (14,977)  (15,370) 
    Interest and fees on PPP loans(5,187)  (1,719)  (5,068)  —   —   (11,974)  —  
    Loan interest income excluding PPP and accretion on acquired loans$56,049   $55,600   $56,873   $59,237   $59,515   $227,759   $235,360  
                  
    Yield on loans14.42   4.11   4.56   4.90   4.89   4.49   5.08  
    Impact of accretion on acquired loans(0.30)  (0.22)  (0.21)  (0.33)  (0.26)  (0.27)  (0.31) 
    Impact of PPP loans0.11   0.33   (0.04)  —   —   0.11   —  
    Yield on loans excluding PPP and accretion on acquired loans4.23 % 4.22 % 4.31 % 4.57 % 4.63 % 4.33 % 4.77 %
                  
    Net Interest Income1$68,903   $63,621   $67,388   $63,291   $61,846   $263,203   $243,953  
    Accretion on acquired loans(4,448)  (3,254)  (2,988)  (4,287)  (3,407)  (14,977)  (15,370) 
    Interest and fees on PPP loans(5,187)  (1,719)  (5,068)  —   —   (11,974)  —  
    Net interest income excluding PPP and accretion on acquired loans$59,268   $58,648   $59,332   $59,004   $58,439   $236,252   $228,583  
                  
    Net Interest Margin3.59   3.40   3.70   3.93   3.84   3.65   3.92  
    Impact of accretion on acquired loans(0.23)  (0.17)  (0.16)  (0.27)  (0.21)  (0.21)  (0.25) 
    Impact of PPP loans0.01   0.19   (0.08)  —   —   0.03   —  
    Net interest margin excluding PPP and accretion on acquired loans3.37 % 3.42 % 3.46 % 3.66 % 3.63 % 3.47 % 3.67 %
                  
    Security interest income1$6,586   $7,129   $7,725   $8,848   $8,662   $30,288   $36,049  
    Tax equivalent adjustment on securities(23)  (32)  (31)  (30)  (32)  (116)  (140) 
    Security interest income excluding tax equivalent adjustment$6,563   $7,097   $7,694   $8,818   $8,630   $30,172   $35,909  
                  
    Loan interest income1$65,684   $60,573   $64,929   $63,524   $62,922   $254,710   $250,730  
    Tax equivalent adjustment on loans(89)  (86)  (85)  (84)  (54)  (344)  (195) 
    Loan interest income excluding tax equivalent adjustment$65,595   $60,487   $64,844   $63,440   $62,868   $254,366   $250,535  
                  
    Net Interest Income1$68,903   $63,621   $67,388   $63,291   $61,846   $263,203   $243,953  
    Tax equivalent adjustment on securities(23)  (32)  (31)  (30)  (32)  (116)  (140) 
    Tax equivalent adjustment on loans(89)  (86)  (85)  (84)  (54)  (344)  (195) 
    Net interest income excluding tax equivalent adjustment$68,791   $63,503   $67,272   $63,177   $61,760   $262,743   $243,618  
                  
    1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.
     

    Contact:

    Chuck Shaffer
    772-221-7003


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