Seacoast Reports Second Quarter 2021 Results

·29-min read

Pipelines Expand Sequentially, in Line with a Flourishing Florida Economy

Record Quarter for Wealth Management, Interchange Income, and Growth in Transaction Account Balances

STUART, Fla., July 22, 2021 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the second quarter of 2021 of $31.4 million, or $0.56 per diluted share, a decrease of 7% compared to the first quarter of 2021, and an increase of 25% compared to the second quarter of 2020. Adjusted net income1 for the second quarter of 2021 was $33.3 million, or $0.59 per diluted share, a decrease of 6% compared to the first quarter of 2021, and an increase of 31% compared to the second quarter of 2020. The ratio of tangible common equity to tangible assets was 10.43%, tangible book value per share increased to $17.08 and Tier 1 capital increased to 18.3%.

For the second quarter of 2021, return on average tangible assets was 1.48%, return on average tangible shareholders' equity was 13.88%, and the efficiency ratio was 54.93%, compared to 1.70%, 15.62%, and 53.21%, respectively, in the prior quarter, and 1.37%, 13.47%, and 50.11%, respectively, in the prior year quarter. Adjusted return on average tangible assets1 in the second quarter of 2021 was 1.52%, adjusted return on average tangible shareholders' equity1 was 14.27%, and the adjusted efficiency ratio1 was 53.49%, compared to 1.75%, 16.01%, and 51.99%, respectively, in the prior quarter, and 1.33%, 13.09%, and 49.60%, respectively, in the prior year quarter.

Charles M. Shaffer, Seacoast's President and CEO, said, “Our investments over the last six months in commercial banking talent and technology are evident in the pipeline growth this quarter, and we continue to see strong economic expansion in our markets. Our transaction account balances have grown $860 million from the start of the year, a reflection of the strength of our customer franchise. While this significant growth in deposits is impacting our net interest margin, our low-cost funding base positions us for success as rates increase and as demand for credit continues to expand in the coming periods.”

Mr. Shaffer further commented, “We continue to steadily build shareholder value through consistent growth in our tangible book value per share, which has increased 13% year-over-year to $17.08, overcoming the challenge of the pandemic. The Company is committed to maintaining our fortress balance sheet, supported by a robust capital position and a strictly underwritten credit portfolio. Our prudent capital levels, low cost of funds, and ample liquidity support further disciplined organic growth and opportunistic acquisitions as we move forward.”

Financial Results

Income Statement

  • Net income was $31.4 million, or $0.56 per diluted share for the second quarter of 2021, compared to $33.7 million, or $0.60, for the prior quarter, and $25.1 million, or $0.47, for the prior year quarter. For the six months ended June 30, 2021, net income was $65.1 million, or $1.17 per diluted share, compared to $25.8 million, or $0.49, for the six months ended June 30, 2020. Adjusted net income1 was $33.3 million, or $0.59 per diluted share for the second quarter of 2021, compared to $35.5 million, or $0.63, for the prior quarter, and $25.5 million, or $0.48, for the prior year quarter. For the six months ended June 30, 2021, adjusted net income1 was $68.7 million, or $1.23 per diluted share, compared to $30.9 million, or $0.59, for the six months ended June 30, 2020.

  • Net revenues were $81.1 million in the second quarter of 2021, a decrease of $3.2 million, or 4%, compared to the prior quarter, and a decrease of $1.2 million, or 1%, compared to the prior year quarter. For the six months ended June 30, 2021, net revenues were $165.4 million, an increase of $5.3 million, or 3%, compared to the six months ended June 30, 2020. Adjusted revenues1 were $81.2 million in the second quarter of 2021, a decrease of $3.2 million, or 4%, from the prior quarter, and an increase of $0.1 million, or 0.2%, compared to the prior year quarter. For the six months ended June 30, 2021 net revenues were $165.6 million, an increase of $6.7 million, or 4%, compared to the six months ended June 30, 2020.

  • Net interest income totaled $65.8 million in the second quarter of 2021, a decrease of $0.8 million, or 1%, from the prior quarter reflecting lower income from Paycheck Protection Program (“PPP”) loans, partially offset by lower interest expense on deposits. During the second quarter of 2021, net interest income included $5.1 million in interest and fees earned on PPP loans compared to $6.9 million in the first quarter of 2021. For the six months ended June 30, 2021, net interest income was $132.4 million, an increase of $2.0 million, or 2%, compared to the six months ended June 30, 2020. As of June 30, 2021, remaining deferred fees on PPP loans total $10.6 million, which will be recognized over the loans' remaining contractual maturity or earlier, as loans are forgiven.

  • Net interest margin declined from 3.51% in the first quarter of 2021 to 3.23% in the second quarter of 2021, largely as the result of significant growth in transaction account deposit balances during the second quarter. This increase in funding occurred across our customer base at near-zero rates, as new clients were onboarded and existing clients continue to see expansion in cash balances. The resulting increase in liquidity negatively impacted net interest margin by 23 basis points. Excluding this increase in liquidity, the remaining decline in net interest margin is attributed to lower PPP interest and fees as a result of declining balances as PPP loans are forgiven. Excess liquidity has been partially invested through securities purchases; however, cash deployment remains disciplined and prudent, with careful reinvestment of liquidity over time. Securities yields declined by only two basis points to 1.63% in the second quarter of 2021. Non-PPP loan yields declined by only one basis point to 4.36% during the second quarter of 2021. Offsetting and favorable was the decline in the cost of deposits from 13 basis points in the first quarter of 2021 to eight basis points in the second quarter of 2021. The effect on net interest margin of accretion of purchase discounts on acquired loans was an increase of 14 basis points in the second quarter compared to an increase of 15 basis points in the prior quarter. The effect on net interest margin of interest and fees on PPP loans was an increase of six basis points in the second quarter and an increase of 11 basis points in the prior quarter.

  • Noninterest income totaled $15.3 million in the second quarter of 2021, a decrease of $2.3 million, or 13%, compared to the prior quarter, and an increase of $0.3 million, or 2%, compared to the prior year quarter. For the six months ended June 30, 2021, noninterest income was $33.0 million, an increase of $3.3 million, or 11%, compared to the six months ended June 30, 2020. Results for the second quarter of 2021 included the following:

    • Interchange revenue reached a new record of $4.1 million, compared to $3.8 million in the prior quarter, reflecting higher transactional volume and higher per-card spending, both indicative of the strength and confidence in our consumer and small business franchise.

    • Wealth management income increased to a record $2.4 million in the current quarter, compared to $2.3 million in the first quarter of 2021. The team continues to deliver strong growth in assets under management, which increased $133 million quarter-over-quarter, bringing total assets under management to $1.2 billion. The team is successfully winning business with commercial relationships and high net worth families across the Company’s footprint.

    • Mortgage banking fees were $3.0 million, compared to $4.2 million in the prior quarter, due to slowing refinance activity and low housing inventory levels.

    • Other income declined by $1.5 million in the second quarter of 2021, reflecting the impact in the first quarter of 2021 of $1.7 million in income associated with the resolution of contingencies on two loans acquired in 2017.

  • The provision for credit losses was a net benefit of $4.9 million in the second quarter of 2021, compared to a net benefit of $5.7 million in the prior quarter, and provision expense of $7.6 million in the prior year quarter. The ratio of allowance for credit losses to total loans declined to 1.49% at June 30, 2021, compared to 1.53% at March 31, 2021 and 1.58% at June 30, 2020. Excluding PPP loans, the ratio declined to 1.60% at June 30, 2021, compared to 1.71% at March 31, 2021 and 1.76% at June 30, 2020, reflecting a continued improvement in the economic outlook.

  • Noninterest expense was $45.8 million in the second quarter of 2021, a decrease of $0.3 million, or 1%, compared to the prior quarter, and an increase of $3.4 million, or 8%, compared to the prior year quarter. For the six months ended June 30, 2021, noninterest expense was $91.9 million, an increase of $1.7 million, or 2%, compared to the six months ended June 30, 2020. Changes from the first quarter of 2021 consisted of the following:

    • Salaries and wages increased $1.6 million, or 7%, to $23.0 million. In the first quarter of 2021, PPP loan production resulted in higher deferrals of related salary costs, impacting the first quarter by $1.9 million. This deferral slowed in the second quarter, as the PPP program ended.

    • Employee benefits decreased $1.0 million, or 21%, with the prior quarter reflecting the seasonal impact of higher payroll taxes and 401(k) plan contributions.

    • Occupancy expenses decreased $0.5 million, or 13%. Three branch consolidations were completed in the first quarter of 2021, resulting in associated charges in the first quarter of $0.3 million.

    • Legal and professional fees decreased by $0.4 million, or 15%, compared to the first quarter, reflecting lower legal fees, including a $0.1 million decrease in merger-related costs.

  • Seacoast recorded $8.8 million of income tax expense in the second quarter of 2021, compared to $10.2 million in the prior quarter and $7.2 million in the second quarter of 2020. A tax benefit related to stock-based compensation totaled $0.6 million in the second quarter of 2021, compared to a tax benefit of $0.1 million in the first quarter of 2021, and tax expense of $0.2 million in the second quarter of 2020.

  • The ratio of net adjusted noninterest expense1 to average tangible assets was 1.98% in the second quarter of 2021, compared to 2.16% in the prior quarter and 2.11% in the second quarter of 2020.

  • The efficiency ratio was 54.93% compared to 53.21% in the prior quarter and 50.11% in the prior year quarter. The adjusted efficiency ratio1 was 53.49% compared to 51.99% in the prior quarter and 49.60% in the prior year quarter. The Company remains committed to efficiency through disciplined, proactive management of its cost structure.

Balance Sheet

  • At June 30, 2021, the Company had total assets of $9.3 billion and total shareholders' equity of $1.2 billion. Book value per share increased to $21.33 from $20.89 on March 31, 2021, and $19.45 on June 30, 2020. Tangible book value per share of $17.08 on June 30, 2021 has increased 11% on an annualized basis compared to March 31, 2021, and 13% compared to June 30, 2020.

  • Debt securities totaled $1.8 billion on June 30, 2021, an increase of $252.5 million, or 16%, compared to March 31, 2021. Purchases during the quarter were primarily in agency-issued collateralized mortgage obligations and had an average yield of 1.39% and a duration of 3.1 years. The Company continues to take a prudent and disciplined approach to reinvesting liquidity.

  • Loans totaled $5.4 billion on June 30, 2021, a decrease of $224.4 million, or 4%, compared to March 31, 2021. The decrease includes $243.0 million in PPP loan forgiveness during the second quarter of 2021. Removing the impact of declines in PPP loans outstanding, loans declined only $6.9 million from the prior quarter.

  • Loan originations, excluding PPP, were $456.5 million in the second quarter of 2021, compared to $436.0 million in the first quarter of 2021, an increase of 5%.

    • Commercial originations during the second quarter of 2021 were $193.0 million, compared to $204.3 million in the first quarter of 2021 and $106.9 million in the second quarter of 2020.

    • Consumer originations in the second quarter of 2021 increased to $63.7 million from $46.7 million in the first quarter of 2021, and $58.0 million in the second quarter of 2020.

    • Residential loans originated for sale in the secondary market totaled $120.1 million in the second quarter of 2021, compared to $138.3 million in the first quarter of 2021, and $122.5 million in the second quarter of 2020. While we expect to continue to see the benefit of the inflow of new residents and businesses into Florida, refinance activity has slowed from the peaks seen in the last several quarters, and housing inventory is low.

    • Closed residential loans retained in the portfolio totaled $79.7 million in the second quarter of 2021, compared to $46.6 million in the first quarter of 2021, and $23.5 million in the second quarter of 2020.

  • Pipelines (loans in underwriting and approval or approved and not yet closed) totaled $468.5 million on June 30, 2021, an increase of 8% from March 31, 2021 and an increase of 83% from June 30, 2020.

    • Commercial pipelines were $322.0 million as of June 30, 2021, an increase of 34% from $240.9 million at March 31, 2021 and an increase of 175% from $117.0 million at June 30, 2020. With significant economic growth in the State of Florida and the addition of top talent across our footprint, we expect production to increase in the second half of 2021.

    • Consumer pipelines were $31.7 million as of June 30, 2021, compared to $28.1 million at March 31, 2021 and $30.6 million at June 30, 2020.

    • Residential saleable pipelines were $60.6 million as of June 30, 2021, compared to $92.1 million at March 31, 2021 and $94.7 million at June 30, 2020. Retained residential pipelines were $54.1 million as of June 30, 2021, compared to $72.4 million at March 31, 2021 and $13.2 million at June 30, 2020.

  • Total deposits were $7.8 billion as of June 30, 2021, an increase of $450.7 million, or 6%, compared to March 31, 2021.

    • The overall cost of deposits declined to 8 basis points in the second quarter of 2021 from 13 basis points in the prior quarter.

    • Total transaction account balances increased $382.9 million, or 9%, quarter-over-quarter, and at June 30, 2021 represent 60% of overall deposit funding. The increase in funding occurred across our customer base at near-zero rates, as new clients were onboarded and existing clients continue to see expansion in cash balances.

    • Interest-bearing deposits (interest-bearing demand, savings, and money market deposits) increased $295.1 million, or 7%, quarter-over-quarter to $4.4 billion, noninterest-bearing demand deposits increased $266.9 million, or 10%, to $3.0 billion, and CDs (excluding brokered) declined $37.8 million, or 7%, to $481.7 million.

    • As of June 30, 2021, deposits per banking center were $163 million, compared to $154 million at March 31, 2021 and $133 million on June 30, 2020.

Asset Quality

  • Nonperforming loans decreased by $2.4 million to $32.9 million at June 30, 2021. Nonperforming loans to total loans outstanding were 0.61% at June 30, 2021, 0.62% at March 31, 2021, and 0.52% at June 30, 2020.

  • Nonperforming assets to total assets were 0.49% at June 30, 2021, 0.58% at March 31, 2021, and 0.57% at June 30, 2020.

  • The ratio of allowance for credit losses to total loans was 1.49% at June 30, 2021, 1.53% at March 31, 2021, and 1.58% at June 30, 2020. Excluding PPP loans, the ratio of allowance for credit losses to total loans at June 30, 2021, was 1.60%, compared to 1.71% at March 31, 2021 and 1.76% at June 30, 2020. The decline in coverage reflects continued improvement in the economic outlook.

  • Net charge-offs were $0.7 million, or 0.05%, of average loans for the second quarter of 2021 compared to $0.4 million, or 0.03%, of average loans in the first quarter of 2021 and $1.8 million, or 0.12%, of average loans in the second quarter of 2020. Net charge-offs for the four most recent quarters averaged 0.10%.

  • 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 $420 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 24% and 164% of total bank-level risk-based capital, respectively, compared to 23% and 168% respectively, in the first quarter of 2021. On a consolidated basis, construction and land development and commercial real estate loans represent 22% and 150%, respectively, of total consolidated risk-based capital.

Capital and Liquidity

  • The tier 1 capital ratio increased to 18.3% from 18.1% at March 31, 2021, and 16.4% at June 30, 2020. The total capital ratio was 19.2% and the tier 1 leverage ratio was 11.7% at June 30, 2021.

  • Cash and cash equivalents at June 30, 2021 totaled $1.4 billion, an increase of $469.5 million, or 48%, from March 31, 2021, largely the result of increased deposit balances during the quarter.

  • Tangible common equity to tangible assets was 10.43% at June 30, 2021, compared to 10.71% at March 31, 2021 and 10.19% at June 30, 2020. The ratio declined quarter-over-quarter largely as a result of a continued increase in liquidity on the balance sheet. The Company will deploy this liquidity in a disciplined and prudent manner.

  • At June 30, 2021, the Company had available unsecured lines of credit of $135.0 million and lines of credit under lendable collateral value of $1.7 billion. Additionally, $1.5 billion of debt securities and $688.4 million of residential and commercial real estate loans are available as collateral for potential borrowings.

FINANCIAL HIGHLIGHTS

(Amounts in thousands except per share data)

(Unaudited)

Quarterly Trends

2Q'21

1Q'21

4Q'20

3Q'20

2Q'20

Selected Balance Sheet Data:

Total Assets

$

9,316,833

$

8,811,820

$

8,342,392

$

8,287,840

$

8,084,013

Gross Loans

5,437,049

5,661,492

5,735,349

5,858,029

5,772,052

Total Deposits

7,836,436

7,385,749

6,932,561

6,914,843

6,666,783

Performance Measures:

Net Income

$

31,410

$

33,719

$

29,347

$

22,628

$

25,080

Net Interest Margin

3.23

%

3.51

%

3.59

%

3.40

%

3.70

%

Average Diluted Shares Outstanding

55,901

55,992

55,739

54,301

53,308

Diluted Earnings Per Share (EPS)

$

0.56

$

0.60

$

0.53

$

0.42

$

0.47

Return on (annualized):

Average Assets (ROA)

1.40

%

1.61

%

1.39

%

1.11

%

1.27

%

Average Tangible Assets (ROTA)2

1.48

1.70

1.49

1.20

1.37

Average Tangible Common Equity (ROTCE)2

13.88

15.62

13.87

11.35

13.47

Tangible Common Equity to Tangible Assets2

10.43

10.71

11.01

10.67

10.19

Tangible Book Value Per Share2

$

17.08

$

16.62

$

16.16

$

15.57

$

15.11

Efficiency Ratio

54.93

%

53.21

%

48.23

%

61.65

%

50.11

%

Adjusted Operating Measures1:

Adjusted Net Income

$

33,251

$

35,497

$

30,700

$

27,336

$

25,452

Adjusted Diluted EPS

0.59

0.63

0.55

0.50

0.48

Adjusted ROTA2

1.52

%

1.75

%

1.50

%

1.38

%

1.33

%

Adjusted ROTCE2

14.27

16.01

14.00

13.06

13.09

Adjusted Efficiency Ratio

53.49

51.99

48.75

54.82

49.60

Net Adjusted Noninterest Expense as a
Percent of Average Tangible Assets2

1.98

2.16

2.00

2.24

2.11

Other Data:

Market capitalization3

$

1,893,141

$

2,003,866

$

1,626,913

$

994,690

$

1,081,009

Full-time equivalent employees

946

953

965

968

924

Number of ATMs

75

75

77

77

76

Full-service banking offices

48

48

51

51

50

Registered online users

129,568

126,352

123,615

121,620

117,273

Registered mobile devices

122,815

117,959

115,129

110,241

108,062

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.

Second Quarter Strategic Highlights

Legacy Bank of Florida Acquisition

Seacoast’s balanced growth strategy, combining organic growth with value-creating acquisitions, continues to benefit shareholders and expand the franchise across Florida. The upcoming acquisition of Legacy Bank of Florida, which is expected to close in the third quarter of 2021, will add experienced bankers in the rapidly growing South Florida market, and should further support disciplined, profitable growth for the Company.

Capitalizing on Seacoast’s Early Commitment to Digital Transformation

  • Seacoast and its customers are benefiting from the Company’s automated online PPP forgiveness solution, which streamlines the process for clients while integrating with Seacoast’s existing technology infrastructure. In the second quarter of 2021, Seacoast processed $243 million in PPP loan forgiveness.

  • The Company completed a significant investment in its nCino digital commercial loan origination platform. This investment will accelerate speed to market, provide a quicker renewal process, and provide a streamlined workflow for bankers and underwriters.

Scaling and Evolving Our Culture

  • Seacoast recently announced the continued expansion of its commercial banking leadership team with three new additions, each bringing significant market expertise and has been successful in developing high performing commercial banking teams.

    • James Norton joined Seacoast as executive vice president and commercial real estate executive. James brings 20 years of experience in commercial real estate to Seacoast Bank. Most recently, James served as a real estate banking director covering the Mid-Atlantic market at JPMorgan Chase. He previously served in executive positions with the BB&T Corporation, IronStone Bank, and SunTrust Bank in the Southeast region. Based out of Tampa, James led the expansion of BB&T’s commercial real estate business in Florida prior to relocating to the Mid-Atlantic region.

    • Chris Rolle joined Seacoast as president of the West Florida region, covering the west coast from the Tampa Bay area to Naples-Ft. Myers. Rolle is a former executive at Synovus Bank, Florida Community Bank, and the BB&T Corporation covering both the Tampa-St. Petersburg and Orlando MSAs.

    • Robert Hursh joined Seacoast as market president for Pinellas County (St. Petersburg/Clearwater). Robert, a Pinellas County native, has more than 20 years of experience in leading commercial banking teams in the Tampa-St. Petersburg MSA, most recently as senior vice president with Synovus Bank.

  • The Company also added two new operational leaders to support growth.

    • Anthony Cavallaro joined Seacoast as senior vice president and operations executive and brings more than 25 years of experience, having led operations and risk management teams at Civista Bank and KeyBank.

    • Robert Walla joined Seacoast as senior vice president and director of loan operations. Bob brings 30 years of operations leadership, most recently at First Midwest Bank in Chicago, Illinois.

  • During the second quarter, Seacoast Bank was named among the Orlando Business Journal's 2021 Best Places to Work. This recognition acknowledges Seacoast’s commitment to employees’ well-being, especially throughout the pandemic, as well as the Company’s numerous diversity and inclusion initiatives.

  • Seacoast was also recently recognized as part of the Human Rights Campaign Foundation’s 2021 Corporate Equality Index as a Best Place to Work for LGBTQ Equality, earning a top score of 100%.

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

OTHER INFORMATION

Conference Call Information
Seacoast will host a conference call on July 23, 2021 at 10:00 a.m. (Eastern Time) to discuss the second quarter 2021 earnings results and business trends. Investors may call in (toll-free) by dialing (800) 774-6070 (passcode: 7461 099#; host: Charles Shaffer). Charts will be used during the conference call and may be accessed at Seacoast's website at www.SeacoastBanking.com by selecting "Presentations" under the heading "News/Events." A replay of the call will be available for one month, beginning late afternoon on July 23, 2021, and can be accessed via a link at www.SeacoastBanking.com under the heading “Corporate Information,” using the passcode 50182591.

Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast's website at www.SeacoastBanking.com. The link is located in the subsection "Presentations" under the heading “Corporate Information.” Beginning late afternoon on July 23, 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 $9.3 billion in assets and $7.8 billion in deposits as of June 30, 2021. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, and 48 traditional branches of its locally-branded, wholly-owned subsidiary bank, Seacoast National 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.

Additional Information
Seacoast has filed a registration statement on Form S-4, as amended, with the United States Securities and Exchange Commission (the "SEC") in connection with the proposed merger of Legacy Bank of Florida ("Legacy Bank") with and into Seacoast Bank. The registration statement in connection with the Legacy Bank merger includes a proxy statement of Legacy Bank and a prospectus of Seacoast. A definitive proxy statement/prospectus has been mailed to shareholders of Legacy Bank. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. WE URGE INVESTORS TO READ THE PROXY STATEMENTS/PROSPECTUSES AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE MERGER OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENTS/PROSPECTUSES BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.

Investors may obtain (when available) these documents free of charge at the SEC’s website (www.sec.gov). In addition, documents filed with the SEC by Seacoast will be available free of charge by contacting Investor Relations at (772) 288-6085.

Legacy Bank, its directors, and executive officers and other members of management and employees may be considered participants in the solicitation of proxies in connection with the proposed merger of Legacy Bank with and into Seacoast Bank. Information regarding the participants in the proxy solicitation of Legacy Bank and a description of its direct and indirect interests, by security holdings or otherwise, is contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC.

Cautionary Notice Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning, and protections, of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, loan growth, cost savings, enhanced revenues, economic and seasonal conditions in our markets, and improvements to reported earnings that may be realized from cost controls, tax law changes, new initiatives and for integration of banks that we have acquired, or expect to acquire, including Legacy Bank of Florida, as well as statements with respect to Seacoast's objectives, strategic plans, expectations and intentions and other statements that are not historical facts, any of which may be impacted by the COVID-19 pandemic and any variants thereof and related effects on the U.S. economy. Actual results may differ from those set forth in the forward-looking statements.

Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates and intentions about future performance and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance or achievements of Seacoast to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. You should not expect us to update any forward-looking statements.

All statements other than statements of historical fact could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may", "will", "anticipate", "assume", "should", "support", "indicate", "would", "believe", "contemplate", "expect", "estimate", "continue", "further", "plan", "point to", "project", "could", "intend", "target" or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the effects of future economic and market conditions, including seasonality and the adverse impact of COVID-19 (economic and otherwise); governmental monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve, as well as legislative, tax and regulatory changes, including those that impact the money supply and inflation; changes in accounting policies, rules and practices, including the impact of the adoption of CECL; our participation in the Paycheck Protection Program ("PPP"); the risks of changes in interest rates on the level and composition of deposits, loan demand, liquidity and the values of loan collateral, securities, and interest sensitive assets and liabilities; interest rate risks, sensitivities and the shape of the yield curve; uncertainty related to the impact of LIBOR calculations on securities and loans; changes in borrower credit risks and payment behaviors; changing retail distribution strategies, customer preferences and behavior; changes in the availability and cost of credit and capital in the financial markets; changes in the prices, values and sales volumes of residential and commercial real estate; our ability to comply with any regulatory requirements; the effects of problems encountered by other financial institutions that adversely affect us or the banking industry; our concentration in commercial real estate loans; inaccuracies or other failures from the use of models, including the failure of assumptions and estimates, as well as differences in, and changes to, economic, market and credit conditions; the impact on the valuation of our investments due to market volatility or counterparty payment risk; statutory and regulatory dividend restrictions; increases in regulatory capital requirements for banking organizations generally; the risks of mergers, acquisitions and divestitures, including our ability to continue to identify acquisition targets 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.

The risks relating to the Legacy Bank of Florida proposed merger include, without limitation: the timing to consummate the proposed merger; the risk that a condition to closing of the proposed merger may not be satisfied; the risk that the merger is not completed at all; the diversion of management time on issues related to the proposed merger; unexpected transaction costs, including the costs of integrating operations; the risks that the businesses will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; the potential failure to fully or timely realize expected revenues and revenue synergies, including as the result of revenues following the merger being lower than expected; the risk of deposit and customer attrition; any changes in deposit mix; unexpected operating and other costs, which may differ or change from expectation; the risk of customer and employee loss and business disruptions, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures on solicitations of customers by competitors; as well as difficulties and risks inherent with entering new markets.

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

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2020 and quarterly report on Form 10-Q for the quarter ended March 31, 2021 under "Special Cautionary Notice Regarding Forward-looking Statements" and "Risk Factors", and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at www.sec.gov.

FINANCIAL HIGHLIGHTS

(Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

Quarterly Trends

Six Months Ended

(Amounts in thousands, except ratios and per share data)

2Q'21

1Q'21

4Q'20

3Q'20

2Q'20

2Q'21

2Q'20

Summary of Earnings

Net income

$

31,410

$

33,719

$

29,347

$

22,628

$

25,080

$

65,129

$

25,789

Adjusted net income1

33,251

35,497

30,700

27,336

25,452

68,748

30,914

Net interest income2

65,933

66,741

68,903

63,621

67,388

132,674

130,679

Net interest margin2,3

3.23

%

3.51

%

3.59

%

3.40

%

3.70

%

3.37

%

3.81

%

Performance Ratios

Return on average assets-GAAP basis3

1.40

%

1.61

%

1.39

%

1.11

%

1.27

%

1.50

%

0.69

%

Return on average tangible assets-GAAP basis3,4

1.48

1.70

1.49

1.20

1.37

1.58

0.78

Adjusted return on average tangible assets1,3,4

1.52

1.75

1.50

1.38

1.33

1.63

0.86

Net adjusted noninterest expense to average tangible assets1,3,4

1.98

2.16

2.00

2.24

2.11

2.07

2.28

Return on average shareholders' equity-GAAP basis3

10.76

12.03

10.51

8.48

9.96

11.39

5.17

Return on average tangible common equity-GAAP basis3,4

13.88

15.62

13.87

11.35

13.47

14.73

7.27

Adjusted return on average tangible common equity1,3,4

14.27

16.01

14.00

13.06

13.09

15.12

8.02

Efficiency ratio5

54.93

53.21

48.23

61.65

50.11

54.05

54.88

Adjusted efficiency ratio1

53.49

51.99

48.75

54.82

49.60

52.72

51.53

Noninterest income to total revenue (excluding securities gains/losses)

18.94

21.07

17.85

21.06

17.00

20.03

17.90

Tangible common equity to tangible assets4

10.43

10.71

11.01

10.67

10.19

10.43

10.19

Average loan-to-deposit ratio

74.13

81.39

84.48

87.83

88.48

77.62

90.59

End of period loan-to-deposit ratio

69.93

77.48

83.72

85.77

87.40

69.93

87.40

Per Share Data

Net income diluted-GAAP basis

$

0.56

$

0.60

$

0.53

$

0.42

$

0.47

$

1.17

$

0.49

Net income basic-GAAP basis

0.57

0.61

0.53

0.42

0.47

1.18

0.49

Adjusted earnings1

0.59

0.63

0.55

0.50

0.48

1.23

0.59

Book value per share common

21.33

20.89

20.46

19.91

19.45

21.33

19.45

Tangible book value per share

17.08

16.62

16.16

15.57

15.11

17.08

15.11

Cash dividends declared

0.13

0.13

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).

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

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

Quarterly Trends

Six Months Ended

(Amounts in thousands, except per share data)

2Q'21

1Q'21

4Q'20

3Q'20

2Q'20

2Q'21

2Q'20

Interest on securities:

Taxable

$

6,559

$

6,298

$

6,477

$

6,972

$

7,573

$

12,857

$

16,269

Nontaxable

147

148

86

125

121

295

243

Fees on PPP loans

3,877

5,390

3,603

161

4,010

9,267

4,010

Interest on PPP loans

1,251

1,496

1,585

1,558

1,058

2,747

1,058

Interest and fees on loans - excluding PPP loans

55,220

55,412

60,407

58,768

59,776

110,632

123,216

Interest on federal funds sold and other investments

709

586

523

556

684

1,295

1,418

Total Interest Income

67,763

69,330

72,681

68,140

73,222

137,093

146,214

Interest on deposits

980

1,065

1,228

1,299

1,203

2,045

4,393

Interest on time certificates

524

1,187

2,104

2,673

3,820

1,711

8,588

Interest on borrowed money

457

468

558

665

927

925

2,784

Total Interest Expense

1,961

2,720

3,890

4,637

5,950

4,681

15,765

Net Interest Income

65,802

66,610

68,791

63,503

67,272

132,412

130,449

Provision for credit losses

(4,855

)

(5,715

)

1,900

(845

)

7,611

(10,570

)

37,124

Net Interest Income After Provision for Credit Losses

70,657

72,325

66,891

64,348

59,661

142,982

93,325

Noninterest income:

Service charges on deposit accounts

2,338

2,338

2,423

2,242

1,939

4,676

4,764

Interchange income

4,145

3,820

3,596

3,682

3,187

7,965

6,433

Wealth management income

2,387

2,323

1,949

1,972

1,719

4,710

3,586

Mortgage banking fees

2,977

4,225

3,646

5,283

3,559

7,202

5,767

Marine finance fees

177

189

145

242

157

366

303

SBA gains

232

287

113

252

181

519

320

BOLI income

872

859

889

899

887

1,731

1,773

Other

2,249

3,744

2,187

2,370

2,147

5,993

5,499

15,377

17,785

14,948

16,942

13,776

33,162

28,445

Securities (losses) gains, net

(55

)

(114

)

(18

)

4

1,230

(169

)

1,249

Total Noninterest Income

15,322

17,671

14,930

16,946

15,006

32,993

29,694

Noninterest expenses:

Salaries and wages

22,966

21,393

21,490

23,125

20,226

44,359

43,924

Employee benefits

3,953

4,980

3,915

3,995

3,379

8,933

7,634

Outsourced data processing costs

4,676

4,468

4,233

6,128

4,059

9,144

8,692

Telephone / data lines

838

785

774

705

791

1,623

1,505

Occupancy

3,310

3,789

3,554

3,858

3,385

7,099

6,738

Furniture and equipment

1,166

1,254

1,317

1,576

1,358

2,420

2,981

Marketing

1,002

1,168

1,045

1,513

997

2,170

2,275

Legal and professional fees

...2,182

2,582

509

3,018

2,277

4,764

5,640

FDIC assessments

515

526

528

474

266

1,041

266

Amortization of intangibles

1,212

1,211

1,421

1,497

1,483

2,423

2,939

Foreclosed property expense and net (gain) loss on sale

(90

)

(65

)

1,821

512

245

(155

)

(70

)

Provision for credit losses on unfunded commitments

(795

)

756

178

224

Other

4,054

4,029

3,869

4,517

3,755

8,083

7,449

Total Noninterest Expense

45,784

46,120

43,681

51,674

42,399

91,904

90,197

Income Before Income Taxes

40,195

43,876

38,140

29,620

32,268

84,071

32,822

Income taxes

8,785

10,157

8,793

6,992

7,188

18,942

7,033

Net Income

$

31,410

$

33,719

$

29,347

$

22,628

$

25,080

$

65,129

$

25,789

Per share of common stock:

Net income diluted

$

0.56

$

0.60

$

0.53

$

0.42

$

0.47

$

1.17

$

0.49

Net income basic

0.57

0.61

0.53

0.42

0.47

1.18

0.49

Cash dividends declared

0.13

0.13

Average diluted shares outstanding

55,901

55,992

55,739

54,301

53,308

55,827

52,807

Average basic shares outstanding

55,421

55,271

55,219

53,978

52,985

55,347

52,394


CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

June 30,

March 31,

December 31,

September 30,

June 30,

(Amounts in thousands)

2021

2021

2020

2020

2020

Assets

Cash and due from banks

$

97,468

$

89,123

$

86,630

$

81,692

$

84,178

Interest bearing deposits with other banks

1,351,377

890,202

317,458

227,876

440,142

Total Cash and Cash Equivalents

1,448,845

979,325

404,088

309,568

524,320

Time deposits with other banks

750

750

750

2,247

2,496

Debt Securities:

Available for sale (at fair value)

1,322,776

1,051,396

1,398,157

1,286,858

976,025

Held to maturity (at amortized cost)

493,467

512,307

184,484

207,376

227,092

Total Debt Securities

1,816,243

1,563,703

1,582,641

1,494,234

1,203,117

Loans held for sale

42,793

60,924

68,890

73,046

54,943

Loans

5,437,049

5,661,492

5,735,349

5,858,029

5,772,052

Less: Allowance for credit losses

(81,127

)

(86,643

)

(92,733

)

(94,013

)

(91,250

)

Net Loans

5,355,922

5,574,849

5,642,616

5,764,016

5,680,802

Bank premises and equipment, net

69,392

70,385

75,117

76,393

69,041

Other real estate owned

12,804

15,549

12,750

15,890

15,847

Goodwill

221,176

221,176

221,176

221,176

212,146

Other intangible assets, net

14,106

15,382

16,745

18,163

17,950

Bank owned life insurance

158,506

132,634

131,776

130,887

127,954

Net deferred tax assets

21,839

24,497

23,629

25,503

21,404

Other assets

154,457

152,646

162,214

156,717

153,993

Total Assets

$

9,316,833

$

8,811,820

$

8,342,392

$

8,287,840

$

8,084,013

Liabilities and Shareholders' Equity

Liabilities

Deposits

Noninterest demand

$

2,952,160

$

2,685,247

$

2,289,787

$

2,400,744

$

2,267,435

Interest-bearing demand

1,763,884

1,647,935

1,566,069

1,385,445

1,368,146

Savings

811,516

768,362

689,179

655,072

619,251

Money market

1,807,190

1,671,179

1,556,370

1,457,078

1,232,892

Other time certificates

335,370

373,297

425,878

457,964

445,176

Brokered time certificates

20,000

93,500

233,815

381,028

572,465

Time certificates of more than $250,000

146,316

146,229

171,463

177,512

161,418

Total Deposits

7,836,436

7,385,749

6,932,561

6,914,843

6,666,783

Securities sold under agreements to repurchase

119,973

109,171

119,609

89,508

92,125

Federal Home Loan Bank borrowings

35,000

135,000

Subordinated debt

71,506

71,436

71,365

71,295

71,225

Other liabilities

106,571

90,115

88,455

78,853

88,277

Total Liabilities

8,134,486

7,656,471

7,211,990

7,189,499

7,053,410

Shareholders' Equity

Common stock

5,544

5,529

5,524

5,517

5,299

Additional paid in capital

862,598

858,688

856,092

854,188

811,328

Retained earnings

314,584

290,420

256,701

227,354

204,719

Treasury stock

(10,180

)

(8,693

)

(8,285

)

(7,941

)

(8,037

)

1,172,546

1,145,944

1,110,032

1,079,118

1,013,309

Accumulated other comprehensive income, net

9,801

9,405

20,370

19,223

17,294

Total Shareholders' Equity

1,182,347

1,155,349

1,130,402

1,098,341

1,030,603

Total Liabilities & Shareholders' Equity

$

9,316,833

$

8,811,820

$

8,342,392

$

8,287,840

$

8,084,013

Common shares outstanding

55,436

55,294

55,243

55,169

52,991


CONSOLIDATED QUARTERLY FINANCIAL DATA

(Unaudited)

SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

(Amounts in thousands)

2Q'21

1Q'21

4Q'20

3Q'20

2Q'20

Credit Analysis

Net charge-offs - non-acquired loans

$

214

$

292

$

3,028

$

1,112

$

1,714

Net charge-offs - acquired loans

441

78

99

624

37

Total Net Charge-offs

655

370

3,127

1,736

1,751

Net charge-offs to average loans - non-acquired loans

0.02

%

0.02

%

0.20

%

0.08

%

0.12

%

Net charge-offs to average loans - acquired loans

0.03

0.01

0.01

0.04

Total Net Charge-offs to Average Loans

0.05

0.03

0.21

0.12

0.12

Allowance for credit losses - non-acquired loans

$

64,525

$

66,523

$

69,786

$

70,388

$

73,587

Allowance for credit losses - acquired loans

16,602

20,120

22,947

23,625

17,663

Total Allowance for Credit Losses

$

81,127

$

86,643

$

92,733

$

94,013

$

91,250

Non-acquired loans at end of period

$

4,290,622

$

4,208,911

$

4,196,205

$

4,157,376

$

4,315,892

Acquired loans at end of period

782,315

870,928

972,183

1,061,853

879,710

Paycheck Protection Program loans at end of period1

364,112

581,653

566,961

638,800

576,450

Total Loans

$

5,437,049

$

5,661,492

$

5,735,349

$

5,858,029

$

5,772,052

Non-acquired loans allowance for credit losses to non-acquired loans at end of period

1.50

%

1.58

%

1.66

%

1.69

%

1.71

%

Total allowance for credit losses to total loans at end of period

1.49

1.53

1.62

1.60

1.58

Total allowance for credit losses to total loans, excluding PPP loans

1.60

1.71

1.79

1.80

1.76

Purchase discount on acquired loans at end of period

2.98

2.93

2.86

3.01

3.29

End of Period

Nonperforming loans

$

32,920

$

35,328

$

36,110

$

36,897

$

30,051

Other real estate owned

11,019

10,836

10,182

12,299

10,967

Properties previously used in bank operations included in other real estate owned

1,785

4,713

2,569

3,592

4,880

Total Nonperforming Assets

$

45,724

$

50,877

$

48,861

$

52,788

$

45,898

Accruing troubled debt restructures (TDRs)

$

4,037

$

4,067

$

4,182

$

10,190

$

10,338

Nonperforming Loans to Loans at End of Period

0.61

%

0.62

%

0.63

%

0.63

%

0.52

%

Nonperforming Assets to Total Assets at End of Period

0.49

0.58

0.59

0.64

0.57

June 30,

March 31,

December 31,

September 30,

June 30,

Loans

2021

2021

2020

2020

2020

Construction and land development

$

234,347

$

227,117

$

245,108

$

280,610

$

298,835

Commercial real estate - owner occupied

1,127,640

1,133,085

1,141,310

1,125,460

1,076,650

Commercial real estate - non-owner occupied

1,412,439

1,438,365

1,395,854

1,394,464

1,392,787

Residential real estate

1,226,536

1,246,549

1,342,628

1,393,396

1,468,171

Commercial and financial

900,206

860,813

854,753

833,083

757,232

Consumer

171,769

173,910

188,735

192,216

201,927

Paycheck Protection Program

364,112

581,653

566,961

638,800

576,450

Total Loans

$

5,437,049

$

5,661,492

$

5,735,349

$

5,858,029

$

5,772,052

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

2Q'21

1Q'21

2Q'20

Average

Yield/

Average

Yield/

Average

Yield/

(Amounts in thousands)

Balance

Interest

Rate

Balance

Interest

Rate

Balance

Interest

Rate

Assets

Earning assets:

Securities:

Taxable

$

1,629,410

$

6,559

1.61

%

$

1,550,457

$

6,298

1.62

%

$

1,135,698

$

7,573

2.67

%

Nontaxable

25,581

186

2.90

25,932

187

2.89

19,347

152

3.14

Total Securities

1,654,991

6,745

1.63

1,576,389

6,485

1.65

1,155,045

7,725

2.68

Federal funds sold and other investments

925,323

709

0.31

377,344

586

0.63

433,626

684

0.63

Loans excluding PPP loans

5,092,897

55,313

4.36

5,149,642

55,504

4.37

5,304,381

59,861

4.54

PPP loans

505,339

5,127

4.07

609,733

6,886

4.58

424,171

5,068

4.81

Total Loans

5,598,236

60,440

4.33

5,759,375

62,390

4.39

5,728,552

64,929

4.56

Total Earning Assets

8,178,550

67,894

3.33

7,713,108

69,461

3.65

7,317,223

73,338

4.03

Allowance for credit losses

(86,042

)

(91,735

)

(84,965

)

Cash and due from banks

327,171

255,685

103,919

Premises and equipment

70,033

74,272

71,173

Intangible assets

235,964

237,323

230,871

Bank owned life insurance

133,484

132,079

127,386

Other assets

166,686

164,622

147,395

Total Assets

$

9,025,846

$

8,485,354

$

7,913,002

Liabilities and Shareholders' Equity

Interest-bearing liabilities:

Interest-bearing demand

$

1,692,178

$

235

0.06

%

$

1,600,490

$

258

0.07

%

$

1,298,639

$

297

0.09

%

Savings

790,734

118

0.06

722,274

137

0.08

591,040

165

0.11

Money market

1,736,481

627

0.14

1,609,938

670

0.17

1,193,969

741

0.25

Time deposits

533,350

524

0.39

711,320

1,187

0.68

1,293,766

3,820

1.19

Securities sold under agreements to repurchase

115,512

35

0.12

112,834

41

0.15

74,717

34

0.18

Federal Home Loan Bank borrowings

199,698

312

0.63

Other borrowings

71,460

422

2.37

71,390

427

2.43

71,185

581

3.28

Total Interest-Bearing Liabilities

4,939,715

1,961

0.16

4,828,246

2,720

0.23

4,723,014

5,950

0.51

Noninterest demand

2,799,643

2,432,038

2,097,038

Other liabilities

116,093

88,654

79,855

Total Liabilities

7,855,451

7,348,938

6,899,907

Shareholders' equity

1,170,395

1,136,416

1,013,095

Total Liabilities & Equity

$

9,025,846

$

8,485,354

$

7,913,002

Cost of deposits

0.08

%

0.13

%

0.31

%

Interest expense as a % of earning assets

0.10

%

0.14

%

0.33

%

Net interest income as a % of earning assets

$

65,933

3.23

%

$

66,741

3.51

%

$

67,388

3.70

%

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.


Six Months Ended June 30, 2021

Six Months Ended June 30, 2020

Average

Yield/

Average

Yield/

(Amounts in thousands, except ratios)

Balance

Interest

Rate

Balance

Interest

Rate

Assets

Earning assets:

Securities:

Taxable

$

1,590,152

$

12,857

1.62

%

$

1,144,086

$

16,269

2.84

%

Nontaxable

25,756

373

2.90

19,544

304

3.11

Total Securities

1,615,908

13,230

1.64

1,163,630

16,573

2.85

Federal funds sold and other investments

652,847

1,295

0.40

260,775

1,418

1.09

Loans excluding PPP loans

5,121,114

110,817

4.36

5,259,808

123,385

4.72

PPP loans

557,247

12,013

4.35

212,085

5,068

4.81

Total Loans

5,678,361

122,830

4.36

5,471,893

128,453

4.72

Total Earning Assets

7,947,116

137,355

3.49

6,896,298

146,444

4.27

Allowance for credit losses

(88,873

)

(70,948

)

Cash and due from banks

291,626

97,002

Premises and equipment

72,141

69,379

Intangible assets

236,640

228,791

Bank owned life insurance

132,785

126,939

Other assets

165,658

136,811

Total Assets

$

8,757,093

$

7,484,272

Liabilities and Shareholders' Equity

Interest-bearing liabilities:

Interest-bearing demand

$

1,646,587

$

493

0.06

%

$

1,236,285

$

1,131

0.18

%

Savings

756,693

255

0.07

558,883

513

0.18

Money market

1,673,559

1,297

0.16

1,161,363

2,749

0.48

Time deposits

621,844

1,711

0.55

1,222,758

8,588

1.41

Securities sold under agreements to repurchase

114,181

76

0.13

72,891

201

0.55

Federal Home Loan Bank borrowings

224,860

1,279

1.14

Other borrowings

71,425

849

2.40

71,149

1,304

3.69

Total Interest-Bearing Liabilities

4,884,289

4,681

0.19

4,548,189

15,765

0.70

Noninterest demand

2,616,856

1,861,126

Other liabilities

102,450

71,413

Total Liabilities

7,603,595

6,480,728

Shareholders' equity

1,153,499

1,003,544

Total Liabilities & Equity

$

8,757,093

$

7,484,272

Cost of deposits

0.10

%

0.43

%

Interest expense as a % of earning assets

0.12

%

0.46

%

Net interest income as a % of earning assets

$

132,674

3.37

%

$

130,679

3.81

%

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

June 30,

March 31,

December 31,

September 30,

June 30,

(Amounts in thousands)

2021

2021

2020

2020

2020

Customer Relationship Funding

Noninterest demand

Commercial

$

2,431,928

$

2,189,564

$

1,821,361

$

1,973,494

$

1,844,288

Retail

401,988

379,257

350,783

322,559

314,723

Public funds

88,057

83,315

90,973

70,371

74,674

Other

30,187

33,111

26,670

34,320

33,750

Total Noninterest Demand

2,952,160

2,685,247

2,289,787

2,400,744

2,267,435

Interest-bearing demand

Commercial

545,797

497,047

454,909

413,513

412,846

Retail

958,619

895,853

839,958

777,078

733,772

Public funds

259,468

255,035

271,202

194,854

221,528

Total Interest-Bearing Demand

1,763,884

1,647,935

1,566,069

1,385,445

1,368,146

Total transaction accounts

Commercial

2,977,725

2,686,611

2,276,270

2,387,007

2,257,134

Retail

1,360,607

1,275,110

1,190,741

1,099,637

1,048,495

Public funds

347,525

338,350

362,175

265,225

296,202

Other

30,187

33,111

26,670

34,320

33,750

Total Transaction Accounts

4,716,044

4,333,182

3,855,856

3,786,189

3,635,581

Savings

811,516

768,362

689,179

655,072

619,251

Money market

Commercial

787,894

692,537

611,623

634,697

586,416

Retail

737,554

701,453

661,311

613,532

579,126

Brokered

187,023

197,389

196,616

141,808

Public funds

94,719

79,800

86,820

67,041

67,350

Total Money Market

1,807,190

1,671,179

1,556,370

1,457,078

1,232,892

Brokered time certificates

20,000

93,500

233,815

381,028

572,465

Other time certificates

481,686

519,526

597,341

635,476

606,594

501,686

613,026

831,156

1,016,504

1,179,059

Total Deposits

$

7,836,436

$

7,385,749

$

6,932,561

$

6,914,843

$

6,666,783

Customer sweep accounts

$

119,973

$

109,171

$

119,609

$

89,508

$

92,125

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

Six Months Ended

(Amounts in thousands, except per share data)

2Q'21

1Q'21

4Q'20

3Q'20

2Q'20

2Q'21

2Q'20

Net Income

$

31,410

$

33,719

$

29,347

$

22,628

$

25,080

$

65,129

$

25,789

Total noninterest income

15,322

17,671

14,930

16,946

15,006

32,993

29,694

Securities losses (gains), net

55

114

18

(4

)

(1,230

)

169

(1,249

)

Total Adjustments to Noninterest Income

55

114

18

(4

)

(1,230

)

169

(1,249

)

Total Adjusted Noninterest Income

15,377

17,785

14,948

16,942

13,776

33,162

28,445

Total noninterest expense

45,784

46,120

43,681

51,674

42,399

91,904

90,197

Merger related charges

(509

)

(581

)

(4,281

)

(240

)

(1,090

)

(4,793

)

Amortization of intangibles

(1,212

)

(1,211

)

(1,421

)

(1,497

)

(1,483

)

(2,423

)

(2,939

)

Business continuity expenses

(307

)

Branch reductions and other expense initiatives

(663

)

(449

)

(354

)

(464

)

(1,112

)

Total Adjustments to Noninterest Expense

(2,384

)

(2,241

)

(1,775

)

(6,242

)

(1,723

)

(4,625

)

(8,039

)

Total Adjusted Noninterest Expense

43,400

43,879

41,906

45,432

40,676

87,279

82,158

Income Taxes

8,785

10,157

8,793

6,992

7,188

18,942

7,033

Tax effect of adjustments

598

577

440

1,530

121

1,175

1,665

Total Adjustments to Income Taxes

598

577

440

1,530

121

1,175

1,665

Adjusted Income Taxes

9,383

10,734

9,233

8,522

7,309

20,117

8,698

Adjusted Net Income

$

33,251

$

35,497

$

30,700

$

27,336

$

25,452

$

68,748

$

30,914

Earnings per diluted share, as reported

$

0.56

$

0.60

$

0.53

$

0.42

$

0.47

$

1.17

$

0.49

Adjusted Earnings per Diluted Share

0.59

0.63

0.55

0.50

0.48

1.23

0.59

Average diluted shares outstanding

55,901

55,992

55,739

54,301

53,308

55,827

52,807

Adjusted Noninterest Expense

$

43,400

$

43,879

$

41,906

$

45,432

$

40,676

$

87,279

$

82,158

Provision for credit losses on unfunded commitments

795

(756

)

(178

)

(224

)

Foreclosed property expense and net gain / (loss) on sale

90

65

(1,821

)

(512

)

(245

)

155

70

Net Adjusted Noninterest Expense

$

43,490

$

43,944

$

40,880

$

44,164

$

40,253

$

87,434

$

82,004

Revenue

$

81,124

$

84,281

$

83,721

$

80,449

$

82,278

$

165,405

$

160,143

Total Adjustments to Revenue

55

114

18

(4

)

(1,230

)

169

(1,249

)

Impact of FTE adjustment

131

131

112

118

116

262

230

Adjusted Revenue on a fully taxable equivalent basis

$

81,310

$

84,526

$

83,851

$

80,563

$

81,164

$

165,836

$

159,124

Adjusted Efficiency Ratio

53.49

%

51.99

%

48.75

%

54.82

%

49.60

%

52.72

%

51.53

%

Net Interest Income

$

65,802

$

66,610

$

68,791

$

63,503

$

67,272

$

132,412

$

130,449

Impact of FTE adjustment

131

131

112

118

116

262

230

Net Interest Income including FTE adjustment

$

65,933

$

66,741

$

68,903

$

63,621

$

67,388

$

132,674

$

130,679

Total noninterest income

15,322

17,671

14,930

16,946

15,006

32,993

29,694

Total noninterest expense

45,784

46,120

43,681

51,674

42,399

91,904

90,197

Pre-Tax Pre-Provision Earnings

$

35,471

$

38,292

$

40,152

$

28,893

$

39,995

$

73,763

$

70,176

Total Adjustments to Noninterest Income

55

114

18

(4

)

(1,230

)

169

(1,249

)

Total Adjustments to Noninterest Expense

(2,294

)

(2,176

)

(2,801

)

(7,510

)

(2,146

)

(4,470

)

(8,193

)

Adjusted Pre-Tax Pre-Provision Earnings

$

37,820

$

40,582

$

42,971

$

36,399

$

40,911

$

78,402

$

77,120

Average Assets

$

9,025,846

$

8,485,354

$

8,376,396

$

8,086,890

$

7,913,002

$

8,757,093

$

7,484,272

Less average goodwill and intangible assets

(235,964

)

(237,323

)

(238,631

)

(228,801

)

(230,871

)

(236,640

)

(228,791

)

Average Tangible Assets

$

8,789,882

$

8,248,031

$

8,137,765

$

7,858,089

$

7,682,131

$

8,520,453

$

7,255,481

Return on Average Assets (ROA)

1.40

%

1.61

%

1.39

%

1.11

%

1.27

%

1.50

%

0.69

%

Impact of removing average intangible assets and related amortization

0.08

0.09

0.10

0.09

0.10

0.08

0.09

Return on Average Tangible Assets (ROTA)

1.48

1.70

1.49

1.20

1.37

1.58

0.78

Impact of other adjustments for Adjusted Net Income

0.04

0.05

0.01

0.18

(0.04

)

0.05

0.08

Adjusted Return on Average Tangible Assets

1.52

1.75

1.50

1.38

1.33

1.63

0.86

Average Shareholders' Equity

$

1,170,395

$

1,136,416

$

1,111,073

$

1,061,807

$

1,013,095

$

1,153,499

$

1,003,544

Less average goodwill and intangible assets

(235,964

)

(237,323

)

(238,631

)

(228,801

)

(230,871

)

(236,640

)

(228,791

)

Average Tangible Equity

$

934,431

$

899,093

$

872,442

$

833,006

$

782,224

$

916,859

$

774,753

Return on Average Shareholders' Equity

10.76

%

12.03

%

10.51

%

8.48

%

9.96

%

11.39

%

5.17

%

Impact of removing average intangible assets and related amortization

3.12

3.59

3.36

2.87

3.51

3.34

2.10

Return on Average Tangible Common Equity (ROTCE)

13.88

15.62

13.87

11.35

13.47

14.73

7.27

Impact of other adjustments for Adjusted Net Income

0.39

0.39

0.13

1.71

(0.38

)

0.39

0.75

Adjusted Return on Average Tangible Common Equity

14.27

16.01

14.00

13.06

13.09

15.12

8.02