Seacoast Banking Corporation of Florida — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income was $59.9 million ($0.55 per diluted share), a 1% increase from the prior quarter and a 64% increase from the prior year quarter.
• Adjusted net income was $71.8 million ($0.66 per diluted share), a 9% increase from the prior quarter and a 59% increase from the prior year quarter.
• Net revenues were $215.0 million, a 3% increase from the prior quarter and a 37% increase from the prior year quarter.
• Net interest income was $183.4 million, a 2% increase from the prior quarter and a 37% increase from the prior year quarter.
• Net interest margin was stable at 3.83% compared to the prior quarter; excluding accretion on acquired loans, it expanded one basis point to 3.66%.
• Adjusted pre-tax pre-provision earnings were $100.3 million, a 5% increase from the prior quarter and a 49% increase from the prior year quarter.
• Return on average assets was 1.11%; adjusted return on average assets was 1.34%.
• Return on average tangible shareholders' equity was 14.34%; adjusted return on average tangible shareholders' equity was 16.89%.
• Provision for credit losses was $6.3 million, reflecting net charge-offs of $5.4 million.
• Noninterest expense was $133.3 million, an 8% increase from the prior quarter and a 31% increase from the prior year quarter.
• The efficiency ratio was 61.0%; the adjusted efficiency ratio improved to 53.9%.
• Allowance for credit losses coverage was 1.41% of total loans as of September 30, 2026.

Guidance and Future Outlook:

• The outlook for consistent loan growth remains strong, with commercial loan pipelines totaling $1.3 billion as of September 30, 2026.
• Management expressed confidence in the company's ability to continue growing, improving returns, and creating value as it enters its second century.
• The company aims to capitalize on opportunities ahead with its expanded footprint, experienced bankers, and deep community presence.

Business Segments and Product Lines:

• Organic loan growth was 13% annualized in the third quarter and 10% annualized year-to-date.
• Average noninterest-bearing deposits grew 4% annualized from the prior quarter; noninterest-bearing demand deposits grew 10% annualized year-to-date.
• Wealth management income was $6.1 million, up 2% from the prior quarter and 33% from the prior year; assets under management grew 29% year-over-year.
• Mortgage banking income was $4.7 million, up 73% from the prior quarter, driven by higher interest rates increasing mortgage servicing rights values.
• Insurance agency income was $1.8 million, up 38% from the prior quarter and 25% from the prior year, including a small agency acquisition in the third quarter.
• Other income was $7.5 million, up 24% from the prior quarter, driven by higher swap and syndication fees, gains on SBA loan sales, and unrealized gains on SBIC investments.
• The company successfully completed the integration of Villages Bancorporation, Inc. (VBI).

Market and Competitive Landscape:

• Seacoast operates 105 full-service branches across Florida and Georgia.
• Customer transaction account balances represent 48% of total deposits.
• The top ten depositors represent approximately 2% of total customer deposits, indicating a granular deposit franchise.
• Commercial deposits represent 53% of overall customer deposit funding, while consumer deposits represent 47%.

Risks and Challenges:

• Higher interest rates and wider spreads contributed to a decline in accumulated other comprehensive income, reducing tangible book value per share by approximately $1.63 in the quarter.
• Nonperforming loans increased to $73.3 million (0.54% of total loans) from $60.6 million in the prior year quarter, though they decreased 15% from the prior quarter.
• Accruing past due loans increased to $27.4 million (0.20% of total loans) from $20.1 million in the prior quarter.
• Merger and integration costs totaled $15.5 million in the third quarter.
• The company faces risks related to economic conditions, interest rate changes, and regulatory requirements, as detailed in the forward-looking statement cautionary notice.

Management Commentary and Tone:

• Chairman and CEO Charles M. Shaffer highlighted the company's 100th anniversary and celebrated record earnings, strong organic loan growth, and improved operating efficiency.
• Management emphasized operating from a position of financial strength with a "fortress balance sheet," strong capital, and substantial liquidity.
• The tone was confident, citing the company's capacity to support customers through economic cycles, invest in the business, and pursue disciplined growth.

Other Key Points:

• The company repurchased over 1.2 million shares of common stock year-to-date.
• Total assets were $21.2 billion and total shareholders' equity was $2.6 billion as of September 30, 2026.
• Book value per common share was $26.83 as of September 30, 2026.
• The company has $8.5 billion in available borrowing capacity, including $5.3 billion in available collateralized lines of credit.
• Liquidity sources represented 165% of uninsured and uncollateralized deposits.
• Construction and land development loans represented 45% of total bank-level risk-based capital, and commercial real estate loans represented 250%.
• An $8.4 million measurement period adjustment was recorded in the third quarter to the reserve for an acquired VBI loan.