Well-Positioned Balance Sheet with Strong Capital and Liquidity

Organic Deposit Growth Highlights Third Quarter Results

Robust Capital Position Builds Quarter over Quarter

STUART, Fla., Oct. 26, 2023 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ:SBCF) today reported net income in the third quarter of 2023 of $31.4 million, or $0.37 per diluted share, compared to $31.2 million, or $0.37 per diluted share in the second quarter of 2023 and $29.2 million, or $0.47 per diluted share in the third quarter of 2022. For the nine months ended September 30, 2023, net income was $74.5 million, or $0.89 per diluted share, a decrease of 10% compared to the nine months ended September 30, 2022.

Adjusted net income¹ for the third quarter of 2023 was $39.7 million, or $0.46 per diluted share, compared to $49.2 million, or $0.58 per diluted share in the second quarter of 2023 and $32.8 million, or $0.53 per diluted share in the third quarter of 2022. Adjusted net income¹ for the nine months ended September 30, 2023 was $118.2 million, or $1.41 per diluted share, an increase of 23% compared to the nine months ended September 30, 2022.

Pre-tax pre-provision earnings¹ were $43.4 million in the third quarter of 2023, an increase of 6% compared to the second quarter of 2023 and an increase of 1% compared to the third quarter of 2022. Pre-tax pre-provision earnings¹ for the nine months ended September 30, 2023 were $130.6 million, an increase of $11.7 million, or 10%, when compared to the nine months ended September 30, 2022. Adjusted pre-tax pre-provision earnings¹ were $54.8 million in the third quarter of 2023, a decrease of 15% compared to the second quarter of 2023 and an increase of 12% compared to the third quarter of 2022. Adjusted pre-tax pre-provision earnings¹ for the nine months ended September 30, 2023 were $190.7 million, an increase of $53.6 million, or 39%, when compared to the nine months ended September 30, 2022.

For the third quarter of 2023, return on average tangible assets was 1.04% and return on average tangible shareholders' equity was 11.90%, compared to 1.06% and 12.08%, respectively, in the prior quarter, and 1.17% and 11.53%, respectively, in the prior year quarter. Adjusted return on average tangible assets¹ in the third quarter of 2023 was 1.12% and adjusted return on average tangible shareholders' equity¹ was 12.79%, compared to 1.41% and 16.08%, respectively, in the prior quarter, and 1.27% and 12.48%, respectively, in the prior year quarter. For the nine months ended September 30, 2023, return on average tangible assets was 0.88% and return on average tangible shareholders' equity was 10.09%, compared to 1.11% and 10.82%, respectively, for the nine months ended September 30, 2022. For the nine months ended September 30, 2023, adjusted return on average tangible assets¹ was 1.15% and adjusted return on average tangible shareholders' equity¹ was 13.14%, compared to 1.24% and 12.13%, respectively, for the nine months ended September 30, 2022.

Charles M. Shaffer, Seacoast's Chairman and CEO said, "Seacoast continues to benefit from the strong deposit franchise, disciplined credit, and conservative balance sheet principles that have served us well over our 96-year history. Following a period of elevated acquisition activity and consistent with our relationship-driven approach, we concentrated during the quarter on organically generated deposit growth, using the funding to pay down brokered time deposits and wholesale borrowings while benefiting from the increase in our market share, to 15^th from 18^th, in the nation's fastest-growing state."

Shaffer added, "We continue to maintain strong credit quality, with non-performing loans declining from the prior quarter. Our balance sheet remains robust, with a Tier 1 capital ratio of 13.9% as of September 30, 2023, and the ratio of tangible common equity to tangible assets of 8.68%. Even if all held-to-maturity securities were adjusted to fair value, our tangible common equity to tangible assets ratio would be a very strong 7.89%. Our liquidity position is also strong with a loan-to-deposit ratio of 83%, providing balance sheet flexibility as we move forward."

Shaffer concluded, "Given the backdrop of an inverted yield curve and slowing economic conditions, we are managing overhead carefully and completed our previously announced reduction in force late in the third quarter. We will continue to position the Company prudently and manage overhead appropriately for the current operating environment."

Financial Results

Income Statement

Net income was $31.4 million, or $0.37 per diluted share, for the third quarter of 2023 compared to net income of $31.2 million, or $0.37 per diluted share, for the prior quarter, and $29.2 million, or $0.47 per diluted share, for the prior year quarter. For the nine months ended September 30, 2023, net income was $74.5 million, or $0.89 per diluted share, compared to $82.6 million, or $1.33 per diluted share, for the nine months ended September 30, 2022. The results for the nine months ended September 30, 2023 included the $26.6 million day-1 provision for credit losses on loans acquired in the Professional Bank acquisition. Adjusted net income¹ for the third quarter of 2023 was $39.7 million, or $0.46 per diluted share, compared to $49.2 million, or $0.58 per diluted share, for the prior quarter, and $32.8 million, or $0.53 per diluted share, for the prior year quarter. For the nine months ended September 30, 2023, adjusted net income¹ was $118.2 million, or $1.41 per diluted share, compared to $96.2 million, or $1.56 per diluted share, for the nine months ended September 30, 2022.
Net revenues were $137.1 million in the third quarter of 2023, a decrease of $11.4 million, or 8%, compared to the prior quarter, and an increase of $32.7 million, or 31%, compared to the prior year quarter. For the nine months ended September 30, 2023, net revenues were $439.2 million, an increase of $144.3 million, or 49%, compared to the nine months ended September 30, 2022. Adjusted revenues¹ were $137.5 million in the third quarter of 2023, a decrease of $11.2 million, or 8%, compared to the prior quarter, and an increase of $32.7 million, or 31%, compared to the prior year quarter. For the nine months ended September 30, 2023, adjusted revenues¹ were $437.6 million, an increase of $141.6 million, or 48%, compared to the nine months ended September 30, 2022.
Pre-tax pre-provision earnings¹ were $43.4 million in the third quarter of 2023, an increase of 6% compared to the second quarter of 2023 and an increase of 1% compared to the third quarter of 2022. Pre-tax pre-provision earnings¹ for the nine months ended September 30, 2023 were $130.6 million, an increase of $11.7 million, or 10%, when compared to the nine months ended September 30, 2022. Adjusted pre-tax pre-provision earnings¹ were $54.8 million in the third quarter of 2023, a decrease of 15% compared to the second quarter of 2023 and an increase of 12% compared to the third quarter of 2022. Adjusted pre-tax pre-provision earnings¹ for the nine months ended September 30, 2023 were $190.7 million, an increase of $53.6 million, or 39%, when compared to the nine months ended September 30, 2022
Net interest income totaled $119.3 million in the third quarter of 2023, a decrease of $7.7 million, or 6%, from the second quarter of 2023 and an increase of $31.0 million, or 35%, compared to the third quarter of 2022. During the third quarter of 2023, higher interest expense on deposits was driven by higher rates, including new requirements by the Florida Bar Association for higher rates on certain trust accounts, and by changes in product mix. These were partially offset by higher interest income on securities and loans. Accretion on acquired loans totaled $14.8 million in the third quarter of 2023, $14.6 million in the second quarter of 2023, and $2.2 million in the third quarter of 2022. For the nine months ended September 30, 2023, net interest income was $377.4 million, an increase of $131.0 million, or 53%, compared to the nine months ended September 30, 2022. Accretion on acquired loans totaled $45.4 million for the nine months ended September 30, 2023, compared to $8.7 million for the nine months ended September 30, 2022.
Net interest margin decreased 29 basis points to 3.57% in the third quarter of 2023 compared to 3.86% in the second quarter of 2023. Loan yields were 5.93%, up four basis points from the prior quarter, and reflected an increase of 148 basis points compared to the prior year quarter. The effect on loan yields of accretion of purchase discounts on acquired loans was an increase of 59 basis points in the third quarter of 2023, an increase of 58 basis points in the second quarter of 2023 and an increase of 14 basis points in the third quarter of 2022. Securities yields increased 19 basis points to 3.32%, compared to 3.13% in the prior quarter. The cost of deposits increased 41 basis points, from 1.38% in the prior quarter, to 1.79% for the third quarter of 2023.
Noninterest income totaled $17.8 million in the third quarter of 2023, a decrease of $3.8 million, or 18%, compared to the prior quarter, and an increase of $1.7 million, or 10%, compared to the prior year quarter. Of the $3.8 million decrease in the third quarter of 2023, $3.4 million resulted from the impact of the Durbin amendment, which became effective for Seacoast on July 1, 2023, and limits network interchange fees earned on debit card transactions. Also in the third quarter of 2023, changes in the interest rate environment resulted in losses of $0.4 million recognized as a result of declines in the value of investments in mutual funds holding CRA-qualified debt securities.
The provision for credit losses was $2.7 million in the third quarter of 2023, compared to a net benefit of $0.8 million in the second quarter of 2023 and a provision of $4.7 million in the third quarter of 2022.
Noninterest expense was $93.9 million in the third quarter of 2023, a decrease of $14.0 million, or 13%, compared to the prior quarter, and an increase of $32.6 million, or 53%, compared to the prior year quarter. Noninterest expense was $309.3 million for the nine months ended September 30, 2023, compared to $176.4 million in the nine months ended September 30, 2022. Changes compared to the second quarter of 2023 included:
- During the third quarter of 2023, the Company completed its reduction in force, reducing headcount by 6%, and consolidated a branch location.
- Salaries and wages increased $1.3 million to $46.4 million in the third quarter of 2023. The third quarter of 2023 included $3.2 million in severance-related expenses arising from the Company's reduction in workforce. This compares to $1.6 million in merger-related expenses in the second quarter of 2023.
- Outsourced data processing costs decreased $11.5 million, or 57%, to $8.7 million in the third quarter of 2023. Included in the second quarter of 2023 were $10.9 million in merger-related expenses.
- Telephone/data lines decreased $0.1 million to $1.4 million and furniture and equipment decreased $0.3 million to $2.1 million in the third quarter of 2023.
- Marketing decreased $0.2 million to $1.9 million in the third quarter of 2023. Marketing expenses are expected to be higher in the fourth quarter of 2023.
- Occupancy costs decreased $0.7 million to $6.3 million in the third quarter of 2023 reflecting branch consolidation and cost synergies from recent acquisitions, including one additional branch consolidation in July.
- Legal and professional fees decreased $1.4 million to $2.7 million in the third quarter of 2023, with $1.7 million of merger-related expenses incurred in the second quarter of 2023.
- Other noninterest expenses decreased $1.1 million to $7.2 million in the third quarter of 2023, the benefit of acquisition-related cost synergies.
Seacoast recorded $9.1 million of income tax expense in the third quarter of 2023, compared to $10.2 million in the second quarter of 2023, and $9.1 million in the third quarter of 2022.
The efficiency ratio was 62.60% in the third quarter of 2023, compared to 67.34% in the second quarter of 2023 and 57.13% in the prior year quarter. The adjusted efficiency ratio¹ was 60.19% in the third quarter of 2023, compared to 56.44% in the second quarter of 2023 and 53.28% in the prior year quarter. The Company continues to remain keenly focused on disciplined expense control. The increase in the adjusted efficiency ratio in the third quarter of 2023 reflects the impact of higher deposit rates, including the first full quarter of the Florida Bar Association's change to rates required to be paid on certain trust accounts, and the first time impact of the Durbin Amendment on interchange income. The adjusted efficiency ratio¹ for the nine months ended September 30, 2023 was 56.47% compared to 53.73% for the nine months ended September 30, 2022.

Balance Sheet

At September 30, 2023, the Company had total assets of $14.8 billion and total shareholders' equity of $2.0 billion. Book value per share was $24.06 on September 30, 2023, compared to $24.14 on June 30, 2023, and $20.95 on September 30, 2022. Tangible book value per share totaled $14.26 on September 30, 2023 compared to $14.24 on June 30, 2023 and $15.98 on September 30, 2022. Removing the impact of the change in accumulated comprehensive income, tangible book value per share would have been higher by $0.30, reaching $14.56, an increase of 8% on an annualized basis.
Debt securities totaled $2.5 billion on September 30, 2023, a decrease of $90.8 million, or 3%, compared to June 30, 2023. Debt securities include approximately $1.8 billion in securities held at fair value and classified as available for sale. The unrealized loss on these securities is fully reflected in the value presented on the balance sheet. The portfolio also includes $691.4 million in securities classified as held to maturity with a fair value of $537.2 million. Held-to-maturity securities consist solely of mortgage-backed securities and collateralized mortgage obligations guaranteed by U.S. government agencies, each of which is expected to recover any price depreciation over its holding period as the debt securities move to maturity. The Company has significant liquidity and available borrowing capacity and has the intent and ability to hold these investments to maturity.
Loans decreased $106.7 million when compared to the prior quarter, totaling $10.0 billion as of September 30, 2023. Loan originations were $244.6 million in the third quarter of 2023, a decrease of 53% compared to $518.9 million in the second quarter of 2023. New add on yields were near 8% during the third quarter of 2023. The Company continues to exercise a disciplined approach to lending, carefully underwriting loans to strict underwriting guidelines and setting high expectations for risk adjusted returns given the current environment.
Loan pipelines (loans in underwriting and approval or approved and not yet closed) totaled $353.0 million on September 30, 2023, an increase of 24% from June 30, 2023, and a decrease of 43% from September 30, 2022.
- Commercial pipelines were $300.8 million as of September 30, 2023, an increase of 38% from $217.6 million at June 30, 2023, and a decrease of 43% from $530.4 million at September 30, 2022.
- Consumer pipelines were $24.5 million as of September 30, 2023, a decrease of $4.0 million from $28.4 million at June 30, 2023, and a decrease of 44% from $43.7 million at September 30, 2022.
- Residential saleable pipelines were $6.8 million as of September 30, 2023, compared to $11.5 million at June 30, 2023, and $6.6 million at September 30, 2022. Retained residential pipelines were $20.9 million as of September 30, 2023, compared to $27.1 million at June 30, 2023, and $60.7 million at September 30, 2022.
Total deposits were $12.1 billion as of September 30, 2023, a decrease of $175.4 million when compared to June 30, 2023, and an increase of $3.3 billion, or 38%, compared to September 30, 2022. Excluding the paydown in brokered balances, total deposits increased $108.1 million, or 3.7% annualized, during the third quarter of 2023. Seacoast's granular, longstanding deposit base is a hallmark of our franchise, and in the current economic environment serves as a significant source of strength.
- During the third quarter of 2023, the Company grew organic deposits 3.7% annualized and used the proceeds to pay down brokered deposits and FHLB borrowings, bolstering the balance sheet and supporting the net interest margin.
- At September 30, 2023, transaction account balances represented 55% of overall deposits.
- Noninterest demand deposits are a peer-leading 32% of overall deposits.
- The Company benefits from a granular deposit franchise, with the top ten depositors representing only 3% of total deposits.
- Average deposits per banking center were $157 million at September 30, 2023, unchanged from the prior quarter.
- Uninsured deposits represented only 34% of overall deposit accounts as of September 30, 2023. This includes public funds under the Florida Qualified Public Depository program, which provides loss protection to depositors beyond FDIC insurance limits. Excluding such balances, the uninsured and uncollateralized deposits were 29% of total deposits. The Company has liquidity sources including cash and lines of credit with the Federal Reserve and Federal Home Loan Bank that represent 154% of uninsured deposits, and 182% of uninsured and uncollateralized deposits.
- Consumer deposits represent 43% of overall deposit funding with an average consumer customer balance of $24 thousand. Commercial deposits represent 57% of overall deposit funding with an average business customer balance of $111 thousand.
- Year over year, the Company increased its deposit market share from #18 in 2022 to #15 in 2023.
Federal Home Loan Bank advances totaled $110.0 million at September 30, 2023 with a weighted average interest rate of 2.88%. In the aggregate, borrowed funds, including FHLB advances, subordinated debt and brokered deposits represented only 4.1% of total liabilities as of September 30, 2023. During the third quarter of 2023, the Company paid down $333.4 million in FHLB advances and brokered deposits.

Asset Quality

Net charge-offs of $12.7 million during the third quarter of 2023 included the complete charge-off of an $11.3 million acquired loan. The charge-off had no impact on earnings or capital, as the Company expected and fully reserved for the loss at acquisition through purchase accounting.
Credit metrics remain strong with non-accruals and criticized assets at historically low levels. The Company remains diligent in its monitoring of these metrics, as well as changes in the broader economic environment.
Nonperforming loans were $41.5 million at September 30, 2023, a decline from $48.3 million at June 30, 2023. Nonperforming loans to total loans outstanding were 0.41% at September 30, 2023, 0.48% at June 30, 2023, and 0.32% at September 30, 2022.
Nonperforming assets to total assets decreased to 0.33% at September 30, 2023, compared to 0.37% at June 30, 2023, and increased from 0.23% at September 30, 2022.
The ratio of allowance for credit losses to total loans was 1.49% at September 30, 2023, 1.58% at June 30, 2023, and 1.42% at September 30, 2022. The impact of the full charge-off of an $11.3 million acquired loan was partially offset by a build of allowance relating to macroeconomic outlook.
Portfolio diversification, in terms of asset mix, industry, and loan type, has been a critical element of the Company's lending strategy. Exposure across industries and collateral types is broadly distributed. Seacoast's average loan size is $306 thousand, and the average commercial loan size is $683 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 51% and 248% of total bank-level risk-based capital, respectively, compared to 52% and 256%, respectively, at June 30, 2023. On a consolidated basis, construction and land development and commercial real estate loans represent 48% and 234%, respectively, of total consolidated risk-based capital.

Capital and Liquidity

The Company continues to operate with a fortress balance sheet with a Tier 1 capital ratio at September 30, 2023 of 13.9% compared to 13.5% at June 30, 2023, and 16.5% at September 30, 2022. The Total capital ratio was 15.0%, the Common Equity Tier 1 capital ratio was 13.3%, and the Tier 1 leverage ratio was 10.6% at September 30, 2023. The Company is considered "well capitalized" based on applicable U.S. regulatory capital ratio requirements.
Cash and cash equivalents at September 30, 2023 totaled $696.0 million.
The Company's loan to deposit ratio was 83% at September 30, 2023, providing liquidity and flexibility moving forward.
Tangible common equity to tangible assets was 8.68% at September 30, 2023, compared to 8.53% at June 30, 2023, and 9.79% at September 30, 2022. If all held-to-maturity securities were adjusted to fair value, the tangible common equity ratio would have been 7.89%.
At September 30, 2023, in addition to $696.0 million in cash, the Company had $5.7 billion in available borrowing capacity, including $4.8 billion in available collateralized lines of credit, $0.6 billion of unpledged debt securities available as collateral for potential additional borrowings, and available unsecured lines of credit of $0.3 billion. These liquidity sources as of September 30, 2023 represented 182% of uninsured and uncollateralized deposits.
In September 2023, Kroll Bond Rating Agency ("KBRA") affirmed Seacoast's senior unsecured debt rating (BBB+) and subordinated debt rating (BBB), with a "Stable" outlook for all long-term ratings.
Under its share repurchase program, the Company is authorized to purchase up to $100 million of its shares of outstanding common stock.

Recognition

In October 2023, Seacoast was recognized among Fortune's Best Workplaces for Women for 2023. Seacoast sets a leading example by fostering inclusivity, empowering women, and creating a workplace where every individual can reach their full potential.
Seacoast has been Certified™ by Great Place To Work® for 2023. As the global authority on workplace culture, Great Place To Work® brings 30 years of groundbreaking research and data to recognize workplaces that create the conditions for an overwhelmingly positive employee experience.
Seacoast earned recognition from the South Florida Business Journal and the Orlando Business Journal as one of 2023's Best Places to Work and has received similar honors the past two years from American Banker.

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


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

	3Q'23			2Q'23			1Q'23			4Q'22			3Q'22
Selected balance sheet data:
Gross loans	$	10,011,186		$	10,117,919		$	10,134,395		$	8,144,724		$	6,690,845
Total deposits		12,107,834			12,283,267			12,309,701			9,981,595			8,765,414
Total assets		14,823,007			15,041,932			15,255,408			12,145,762			10,345,235

Performance measures:
Net income	$	31,414		$	31,249		$	11,827		$	23,927		$	29,237
Net interest margin		3.57	%		3.86	%		4.31	%		4.36	%		3.67	%
Pre-tax pre-provision earnings¹		43,383			40,864			46,321			45,999			43,143
Average diluted shares outstanding		85,666			85,536			80,717			71,374			61,961
Diluted earnings per share (EPS)	$	0.37		$	0.37		$	0.15		$	0.34		$	0.47
Return on (annualized):
Average assets (ROA)		0.84	%		0.84	%		0.34	%		0.78	%		1.10	%
Average tangible assets (ROTA)²		1.04			1.06			0.52			0.94			1.17
Average tangible common equity (ROTCE)²		11.90			12.08			5.96			10.36			11.53
Tangible common equity to tangible assets²		8.68			8.53			8.36			9.08			9.79
Tangible book value per share²	$	14.26		$	14.24		$	14.25		$	14.69		$	15.98
Efficiency ratio		62.60	%		67.34	%		65.43	%		63.39	%		57.13	%

Adjusted operating measures¹:
Adjusted net income	$	39,737		$	49,203		$	29,241		$	39,926		$	32,837
Adjusted pre-tax pre-provision earnings		54,806			64,856			71,081			66,649			48,989
Adjusted diluted EPS		0.46			0.58			0.36			0.56			0.53
Adjusted ROTA²		1.12	%		1.41	%		0.90	%		1.36	%		1.27	%
Adjusted ROTCE²		12.79			16.08			10.34			15.05			12.48
Adjusted efficiency ratio		60.19			56.44			53.10			51.52			53.28
Net adjusted noninterest expense as a percent of average tangible assets²		2.34			2.40			2.47			2.42			2.16

Other data:
Market capitalization³	$	1,869,891		$	1,880,407		$	2,005,241		$	2,233,761		$	1,858,429
Full-time equivalent employees		1,570			1,670			1,650			1,490			1,156
Number of ATMs		97			96			97			100			79
Full-service banking offices		77			78			83			78			58
¹Non-GAAP measure, see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP.
²The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.
³Common shares outstanding multiplied by closing bid price on last day of each period.

OTHER INFORMATION

Conference Call Information

Seacoast will host a conference call October 27^th, 2023, at 10:00 a.m. (Eastern Time) to discuss the third quarter 2023 earnings results and business trends. Investors may call in (toll-free) by dialing (800) 919-1728. Charts will be used during the conference call and may be accessed at Seacoast's website at www.SeacoastBanking.com by selecting "Presentations" under the heading "News/Events." Additionally, a recording of the call will be made available to individuals shortly after the conference call and can be accessed via a link at www.SeacoastBanking.com under the heading "Corporate Information." The recording will be available for one year.

About Seacoast Banking Corporation of Florida (NASDAQ:SBCF)

Seacoast Banking Corporation of Florida (NASDAQ:SBCF) is one of the largest community banks headquartered in Florida with approximately $14.8 billion in assets and $12.1 billion in deposits as of September 30, 2023. Seacoast provides integrated financial services including commercial and consumer banking, wealth management, and mortgage services to customers at 77 full-service branches across Florida, and through advanced mobile and online banking solutions. Seacoast National Bank is the wholly-owned subsidiary bank of Seacoast Banking Corporation of Florida. For more information about Seacoast, visit www.SeacoastBanking.com.

Tracey L. Dexter

Chief Financial Officer

Seacoast Banking Corporation of Florida

(772) 403-0461

Cautionary Notice Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning, and protections, of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including, without limitation, statements about future financial and operating results, cost savings, enhanced revenues, economic and seasonal conditions in the Company's markets, and improvements to reported earnings that may be realized from cost controls, tax law changes, new initiatives and for integration of banks that the Company has acquired, or expects to acquire, as well as statements with respect to Seacoast's objectives, strategic plans, expectations and intentions and other statements that are not historical facts. Actual results may differ from those set forth in the forward-looking statements.

Forward-looking statements include statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates and intentions about future performance and involve known and unknown risks, uncertainties and other factors, which may be beyond the Company's control, and which may cause the actual results, performance or achievements of Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") or its wholly-owned banking subsidiary, Seacoast National Bank ("Seacoast Bank"), to be materially different from results, performance or achievements expressed or implied by such forward-looking statements. You should not expect the Company to update any forward-looking statements.

All statements other than statements of historical fact could be forward-looking statements. You can identify these forward-looking statements through the use of words such as "may", "will", "anticipate", "assume", "should", "support", "indicate", "would", "believe", "contemplate", "expect", "estimate", "continue", "further", "plan", "point to", "project", "could", "intend", "target" or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the impact of current and future economic and market conditions generally (including seasonality) and in the financial services industry, nationally and within Seacoast's primary market areas, including the effects of inflationary pressures, changes in interest rates, slowdowns in economic growth, and the potential for high unemployment rates, as well as the financial stress on borrowers and changes to customer and client behavior and credit risk as a result of the foregoing; potential impacts of the recent adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; governmental monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve, as well as legislative, tax and regulatory changes, including those that impact the money supply and inflation; the risks of changes in interest rates on the level and composition of deposits (as well as the cost of, and competition for, deposits), loan demand, liquidity and the values of loan collateral, securities, and interest rate sensitive assets and liabilities; interest rate risks, sensitivities and the shape of the yield curve; changes in accounting policies, rules and practices; changes in retail distribution strategies, customer preferences and behavior generally and as a result of economic factors, including heightened inflation; changes in the availability and cost of credit and capital in the financial markets; changes in the prices, values and sales volumes of residential and commercial real estate; the Company's concentration in commercial real estate loans and in real estate collateral in Florida; Seacoast's ability to comply with any regulatory requirements; the effects of problems encountered by other financial institutions that adversely affect Seacoast or the banking industry; inaccuracies or other failures from the use of models, including the failure of assumptions and estimates, as well as differences in, and changes to, economic, market and credit conditions; the impact on the valuation of Seacoast's investments due to market volatility or counterparty payment risk, as well as the effect of a decline in stock market prices on our fee income from our wealth management business; statutory and regulatory dividend restrictions; increases in regulatory capital requirements for banking organizations generally; the risks of mergers, acquisitions and divestitures, including Seacoast's ability to continue to identify acquisition targets, successfully acquire and integrate desirable financial institutions and realize expected revenues and revenue synergies; changes in technology or products that may be more difficult, costly, or less effective than anticipated; the Company's ability to identify and address increased cybersecurity risks; fraud or misconduct by internal or external actors, which Seacoast may not be able to prevent, detect or mitigate; inability of Seacoast's risk management framework to manage risks associated with the Company's business; dependence on key suppliers or vendors to obtain equipment or services for the business on acceptable terms, including the impact of supply chain disruptions; reduction in or the termination of Seacoast's ability to use the online- or mobile-based platform that is critical to the Company's business growth strategy; the effects of war or other conflicts, including the impacts related to or resulting from Russia's military action in Ukraine, acts of terrorism, natural disasters, including hurricanes in the Company's footprint, health emergencies, epidemics or pandemics, or other catastrophic events that may affect general economic conditions; unexpected outcomes of and the costs associated with, existing or new litigation involving the Company; Seacoast's ability to maintain adequate internal controls over financial reporting; potential claims, damages, penalties, fines and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions; the risks that deferred tax assets could be reduced if estimates of future taxable income from the Company's operations and tax planning strategies are less than currently estimated and sales of capital stock could trigger a reduction in the amount of net operating loss carryforwards that the Company may be able to utilize for income tax purposes; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, non-bank financial technology providers, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in the Company's market areas and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the Internet; the failure of assumptions underlying the establishment of reserves for possible credit losses; risks related to environmental, social and governance ("ESG") matters, the scope and pace of which could alter Seacoast's reputation and shareholder, associate, customer and third-party affiliations; and other factors and risks described under "Risk Factors" herein and in any of the Company's subsequent reports filed with the SEC and available on its website at www.sec.gov

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in the Company's annual report on Form 10-K for the year ended December 31, 2022 and quarterly reports on Form 10-Q for the quarters ended March 31, 2023 and June 30, 2023 under "Special Cautionary Notice Regarding Forward-Looking Statements" and "Risk Factors", and otherwise in the Company's SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at www.sec.gov.


FINANCIAL HIGHLIGHTS							(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	Quarterly Trends															Nine Months Ended
(Amounts in thousands, except ratios and per share data)	3Q'23			2Q'23			1Q'23			4Q'22			3Q'22			3Q'23			3Q'22
Summary of Earnings
Net income	$	31,414		$	31,249		$	11,827		$	23,927		$	29,237		$	74,490		$	82,580
Adjusted net income¹		39,737			49,203			29,241			39,926			32,837			118,181			96,220
Net interest income²		119,505			127,153			131,351			119,858			88,399			378,009			246,803
Net interest margin^2,3		3.57	%		3.86	%		4.31	%		4.36	%		3.67	%		3.91	%		3.44	%
Pre-tax pre-provision earnings¹		43,383			40,864			46,321			45,999			43,143			130,568			118,819
Adjusted pre-tax pre-provision earnings¹		54,806			64,856			71,081			66,649			48,989			190,743			137,124
Performance Ratios
Return on average assets-GAAP basis³		0.84	%		0.84	%		0.34	%		0.78	%		1.10	%		0.68	%		1.03	%
Return on average tangible assets-GAAP basis^3,4		1.04			1.06			0.52			0.94			1.17			0.88			1.11
Adjusted return on average tangible assets^1,3,4		1.12			1.41			0.90			1.36			1.27			1.15			1.24
Pre-tax pre-provision return on average tangible assets^1,3,4		1.38			1.33			1.58			1.69			1.71			1.43			1.57
Adjusted pre-tax pre-provision return on average tangible assets^1,3,4		1.55			1.85			2.18			2.28			1.89			1.85			1.77
Net adjusted noninterest expense to average tangible assets^1,3,4		2.34			2.40			2.47			2.42			2.16			2.40			2.05
Return on average shareholders' equity-GAAP basis³		6.01			6.05			2.53			6.03			8.60			4.94			8.08
Return on average tangible common equity-GAAP basis^3,4		11.90			12.08			5.96			10.36			11.53			10.09			10.82
Adjusted return on average tangible common equity^1,3,4		12.79			16.08			10.34			15.05			12.48			13.14			12.13
Efficiency ratio⁵		62.60			67.34			65.43			63.39			57.13			65.19			58.45
Adjusted efficiency ratio¹		60.19			56.44			53.10			51.52			53.28			56.47			53.73
Noninterest income to total revenue (excluding securities gains/losses)		13.22			14.63			14.55			12.84			15.72			14.16			16.74
Tangible common equity to tangible assets⁴		8.68			8.53			8.36			9.08			9.79			8.68			9.79
Average loan-to-deposit ratio		82.63			83.48			82.43			77.67			73.90			82.86			71.92
End of period loan-to-deposit ratio		82.71			82.42			82.35			81.63			76.35			82.71			76.35
Per Share Data
Net income diluted-GAAP basis	$	0.37		$	0.37		$	0.15		$	0.34		$	0.47		$	0.89		$	1.33
Net income basic-GAAP basis		0.37			0.37			0.15			0.34			0.48			0.89			1.35
Adjusted earnings¹		0.46			0.58			0.36			0.56			0.53			1.41			1.56
Book value per share common		24.06			24.14			24.24			22.45			20.95			24.06			20.95
Tangible book value per share		14.26			14.24			14.25			14.69			15.98			14.26			15.98
Cash dividends declared		0.18			0.18			0.17			0.17			0.17			0.53			0.47
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														Nine Months Ended
(Amounts in thousands, except per share data)	3Q'23			2Q'23			1Q'23		4Q'22			3Q'22			3Q'23			3Q'22

Interest on securities:
Taxable	$	21,401		$	20,898		$	19,244	$	18,530		$	15,653		$	61,543		$	38,081
Nontaxable		97			97			105		130			138			299			416
Interest and fees on loans		149,871			148,265			135,168		105,322			73,970			433,304			210,395
Interest on federal funds sold and other investments		8,477			5,023			3,474		3,127			1,643			16,974			4,493
Total Interest Income		179,846			174,283			157,991		127,109			91,404			512,120			253,385

Interest on deposits		38,396			27,183			16,033		3,934			1,623			81,612			3,384
Interest on time certificates		16,461			14,477			5,552		1,358			380			36,490			1,284
Interest on borrowed money		5,683			5,660			5,254		2,108			1,117			16,597			2,264
Total Interest Expense		60,540			47,320			26,839		7,400			3,120			134,699			6,932

Net Interest Income		119,306			126,963			131,152		119,709			88,284			377,421			246,453
Provision for credit losses		2,694			(764	)		31,598		14,129			4,676			33,528			12,054
Net Interest Income After Provision for Credit Losses		116,612			127,727			99,554		105,580			83,608			343,893			234,399

Noninterest income:
Service charges on deposit accounts		4,648			4,560			4,242		3,996			3,504			13,450			9,713
Interchange income		1,684			5,066			4,694		4,650			4,138			11,444			12,521
Wealth management income		3,138			3,318			3,063		2,886			2,732			9,519			8,165
Mortgage banking fees		410			576			426		426			434			1,412			3,052
Insurance agency income		1,183			1,160			1,101		805			—			3,444			—
SBA gains		613			249			322		105			108			1,184			737
BOLI income		2,197			2,068			1,916		1,526			1,363			6,181			4,046
Other		4,307			4,755			6,574		3,239			4,186			15,636			11,320
		18,180			21,752			22,338		17,633			16,465			62,270			49,554
Securities (losses) gains, net		(387	)		(176	)		107		18			(362	)		(456	)		(1,114	)
Total Noninterest Income		17,793			21,576			22,445		17,651			16,103			61,814			48,440

Noninterest expenses:
Salaries and wages		46,431			45,155			47,616		45,405			28,420			139,202			84,695
Employee benefits		7,206			7,472			8,562		5,300			4,074			23,240			13,726
Outsourced data processing costs		8,714			20,222			14,553		9,918			5,393			43,489			17,592
Telephone / data lines		1,409			1,518			1,081		1,185			973			4,008			2,614
Occupancy		6,349			7,065			6,938		5,457			5,046			20,352			13,082
Furniture and equipment		2,052			2,345			2,267		1,944			1,462			6,664			4,476
Marketing		1,876			2,047			2,238		1,772			1,461			6,161			4,514
Legal and professional fees		2,679			4,062			7,479		9,174			3,794			14,220			11,529
FDIC assessments		2,258			2,116			1,443		889			760			5,817			2,248
Amortization of intangibles		7,457			7,654			6,727		4,763			1,446			21,838			4,338
Foreclosed property expense and net loss (gain) on sale		274			(57	)		195		(411	)		9			412			(1,123	)
Provision for credit losses on unfunded commitments		—			—			1,239		—			1,015			1,239			1,157
Other		7,210			8,266			7,137		6,114			7,506			22,613			17,576
Total Noninterest Expense		93,915			107,865			107,475		91,510			61,359			309,255			176,424

Income Before Income Taxes		40,490			41,438			14,524		31,721			38,352			96,452			106,415
Income taxes		9,076			10,189			2,697		7,794			9,115			21,962			23,835
Net Income	$	31,414		$	31,249		$	11,827	$	23,927		$	29,237		$	74,490		$	82,580

Per share of common stock:

Net income diluted	$	0.37		$	0.37		$	0.15	$	0.34		$	0.47		$	0.89		$	1.33
Net income basic		0.37			0.37			0.15		0.34			0.48			0.89			1.35
Cash dividends declared		0.18			0.18			0.17		0.17			0.17			0.53			0.47

Average diluted shares outstanding		85,666			85,536			80,717		71,374			61,961			83,993			61,867
Average basic shares outstanding		85,142			85,022			80,151		70,770			61,442			83,457			61,327

CONDENSED CONSOLIDATED BALANCE SHEETS							(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	September 30,			June 30,			March 31,			December 31,			September 30,
(Amounts in thousands)		2023			2023			2023			2022			2022
Assets
Cash and due from banks	$	182,036		$	164,193		$	180,607		$	120,748		$	176,463
Interest bearing deposits with other banks		513,946			563,690			610,636			81,192			42,152
Total Cash and Cash Equivalents		695,982			727,883			791,243			201,940			218,615

Time deposits with other banks		4,357			2,987			3,236			3,236			4,481

Debt Securities:
Available for sale (at fair value)		1,841,845			1,916,231			2,015,967			1,871,742			1,860,734
Held to maturity (at amortized cost)		691,404			707,812			737,911			747,408			774,706
Total Debt Securities		2,533,249			2,624,043			2,753,878			2,619,150			2,635,440

Loans held for sale		2,979			5,967			2,838			3,151			1,620

Loans		10,011,186			10,117,919			10,134,395			8,144,724			6,690,845
Less: Allowance for credit losses		(149,661	)		(159,715	)		(155,640	)		(113,895	)		(95,329	)
Net Loans		9,861,525			9,958,204			9,978,755			8,030,829			6,595,516

Bank premises and equipment, net		115,749			116,959			116,522			116,892			81,648
Other real estate owned		7,216			7,526			7,756			2,301			2,419
Goodwill		731,970			732,910			728,396			480,319			286,606
Other intangible assets, net		102,397			109,716			117,409			75,451			18,583
Bank owned life insurance		296,763			293,880			292,545			237,824			209,087
Net deferred tax assets		131,602			127,941			124,301			94,457			83,139
Other assets		339,218			333,916			338,529			280,212			208,081
Total Assets	$	14,823,007		$	15,041,932		$	15,255,408		$	12,145,762		$	10,345,235

Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest demand	$	3,868,132		$	4,139,052		$	4,554,509		$	4,070,973		$	3,529,489
Interest-bearing demand		2,800,152			2,816,656			2,676,320			2,337,590			2,170,251
Savings		721,558			824,255			940,702			1,064,392			938,081
Money market		3,143,897			2,859,164			2,893,128			1,985,974			1,700,737
Other time certificates		821,406			628,036			598,483			369,389			312,840
Brokered time certificates		307,963			591,503			371,392			3798			—
Time certificates of more than $250,000		444,726			424,601			275,167			149,479			114,016
Total Deposits		12,107,834			12,283,267			12,309,701			9,981,595			8,765,414

Securities sold under agreements to repurchase		276,450			290,156			267,606			172,029			94,191
Federal Home Loan Bank borrowings		110,000			160,000			385,000			150000			—
Subordinated debt, net		106,136			105,970			105,804			84,533

Seacoast Reports Third Quarter 2023 Results