Seacoast Reports Second Quarter 2025 Results

Net Interest Margin Expands 10 Basis Points to 3.58% and Net Interest Income Grows 7%

Annualized Loan Growth of 6% with Continuing Strong Pipeline

Gains in Return on Average Assets, Return on Tangible Common Equity and Efficiency Ratio

STUART, Fla.–(BUSINESS WIRE)–Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”) (NASDAQ: SBCF) today reported net income in the second quarter of 2025 of $42.7 million, or $0.50 per diluted share, compared to $31.5 million, or $0.37 per diluted share, in the first quarter of 2025 and $30.2 million, or $0.36 per diluted share, in the second quarter of 2024. For the six months ended June 30, 2025 and 2024, net income was $74.2 million, or $0.87 per diluted share, and $56.3 million, or $0.66 per diluted share, respectively.

Adjusted net income¹ for the second quarter of 2025 was $44.5 million, or $0.52 per diluted share, compared to $32.1 million, or $0.38 per diluted share, in the first quarter of 2025 and $30.3 million, or $0.36 per diluted share, in the second quarter of 2024. For the six months ended June 30, 2025 and 2024, adjusted net income¹ was $76.6 million, or $0.90 per diluted share, and $61.4 million, or $0.72 per diluted share, respectively.

Pre-tax pre-provision earnings¹ were $60.2 million in the second quarter of 2025, an increase of $9.6 million, or 19%, compared to the first quarter of 2025 and an increase of $15.7 million, or 35%, compared to the second quarter of 2024. For the six months ended June 30, 2025 and 2024, pre-tax pre-provision earnings¹ were $110.8 million and $80.2 million, respectively. Adjusted pre-tax pre-provision earnings¹ were $62.6 million in the second quarter of 2025, an increase of $10.9 million, or 21%, compared to the first quarter of 2025 and an increase of $18.1 million, or 41%, compared to the second quarter of 2024. For the six months ended June 30, 2025 and 2024, adjusted pre-tax pre-provision earnings¹ were $114.3 million and $87.0 million, respectively.

For the second quarter of 2025, return on average tangible assets was 1.24% and return on average tangible shareholders’ equity was 12.82%, compared to 0.98% and 10.17%, respectively, in the prior quarter, and 1.00% and 10.75%, respectively, in the prior year quarter. For the six months ended June 30, 2025, return on average tangible assets was 1.12% and return on average tangible shareholders’ equity was 11.52%. For the six months ended June 30, 2024, return on average tangible assets was 0.94% and return on average tangible shareholders’ equity was 10.15%. Adjusted return on average tangible assets¹ in the second quarter of 2025 was 1.29% and adjusted return on average tangible shareholders’ equity¹ was 13.31%, compared to 1.00% and 10.35%, respectively, in the prior quarter, and 1.00% and 10.76%, respectively, in the prior year quarter. For the six months ended June 30, 2025, adjusted return on average tangible assets¹ was 1.15% and adjusted return on average tangible shareholders’ equity¹ was 11.86%. For the six months ended June 30, 2024, adjusted return on average tangible assets¹ was 1.02% and adjusted return on average tangible shareholders’ equity¹ was 10.95%.

Charles M. Shaffer, Seacoast’s Chairman and CEO, said, “Our performance in the second quarter showcases the strength and momentum of our franchise. The expansion in net interest margin is a direct result of the disciplined execution and strategic focus of the Seacoast team. We’re seeing the benefits of consistent, high-quality loan growth and well-managed deposit costs, which are fueling strong net interest income growth. Our fee-based revenue businesses continue to expand and expenses are well controlled.”

Shaffer added, “In the second half of the year, we’re thrilled to welcome two seasoned, high-performing franchises – Heartland Bancshares, Inc. and Villages Bancorporation, Inc. – into the Seacoast franchise. These acquisitions are transformational, expanding our footprint in key growth markets across Central Florida and The Villages®, one of the fastest-growing communities in the country.”

“The Heartland Bancshares acquisition brings a strong banking presence and deep customer relationships in Central Florida, along with a talented team that shares our values and commitment to community banking. Villages Bancorporation will add a unique and deeply rooted franchise in a vibrant market with attractive demographics, enhancing our ability to serve a growing and affluent customer base.”

Shaffer concluded, “We remain committed to maintaining our fortress balance sheet and disciplined approach to credit. We are consistently operating with one of the strongest capital positions in the industry, with ample liquidity and a Tier 1 capital ratio of 14.6% as of June 30, 2025. In the coming quarters, we will strategically deploy excess capital through the two bank acquisitions, which we expect will meaningfully enhance our profitability and long-term growth trajectory.”

Acquisitions Update

On July 11, 2025, the Company completed its acquisition of Heartland Bancshares, Inc. (“Heartland”), adding approximately $157 million in loans and $684 million in deposits, along with four branches in Central Florida. Integration activities, including system conversion, are expected to be finalized later in the third quarter of 2025. Total consideration was $111.2 million, structured as a 50% cash and 50% stock transaction.

On May 29, 2025, the Company announced its proposed acquisition of Villages Bancorporation, Inc (“VBI”). The transaction, which is expected to close in the fourth quarter of 2025, will expand the Company’s presence in North Central Florida and into The Villages community. VBI operates 19 branches with approximately $3.5 billion in deposits and approximately $1.3 billion in loans as of June 30, 2025. Full integration and system conversion activities are expected to be finalized in the second quarter of 2026.

Financial Results

Income Statement

• Net income in the second quarter of 2025 was $42.7 million, or $0.50 per diluted share, compared to $31.5 million, or $0.37 per diluted share, in the prior quarter and $30.2 million, or $0.36 per diluted share, in the prior year quarter. Adjusted net income¹ for the second quarter of 2025 was $44.5 million, or $0.52 per diluted share, compared to $32.1 million, or $0.38 per diluted share, for the prior quarter, and $30.3 million, or $0.36 per diluted share, for the prior year quarter.

• Net revenues were $151.4 million in the second quarter of 2025, an increase of $10.7 million, or 8%, compared to the prior quarter, and an increase of $24.8 million, or 20%, compared to the prior year quarter. Adjusted net revenues¹ were $151.8 million in the second quarter of 2025, an increase of $10.9 million, or 8%, compared to the prior quarter, and an increase of $24.9 million, or 20%, compared to the prior year quarter.

• Pre-tax pre-provision earnings¹ were $60.2 million in the second quarter of 2025, an increase of $9.6 million, or 19%, compared to the first quarter of 2025 and an increase of $15.7 million, or 35%, compared to the second quarter of 2024. Adjusted pre-tax pre-provision earnings¹ were $62.6 million in the second quarter of 2025, an increase of $10.9 million, or 21%, compared to the first quarter of 2025 and an increase of $18.1 million, or 41%, compared to the second quarter of 2024.

• Net interest income totaled $126.9 million in the second quarter of 2025, reflecting an increase of $8.3 million, or 7%, compared to the prior quarter, and an increase of $22.4 million, or 21%, compared to the second quarter of 2024. The increase was driven by higher securities and loan interest income. Securities income increased $3.1 million, or 11%, primarily due to securities purchases in the first half of 2025. Interest income on loans increased by $6.4 million in the second quarter of 2025, reflecting strong loan production and an increase in accretion on acquired loans from higher payoffs. Included in loan interest income was accretion on acquired loans of $10.6 million in the second quarter of 2025, $8.2 million in the first quarter of 2025, and $10.2 million in the second quarter of 2024. On the expense side, interest on deposits decreased $3.0 million, or 7%, compared to the prior quarter, and $10.7 million, or 21%, compared to the second quarter of 2024, reflecting a lower cost of deposits. Interest expense on borrowed money increased $3.6 million, or 50%, compared to the prior quarter, and $4.6 million, or 75%, compared to second quarter of 2024, largely due to higher short-term borrowings used to fund strategic purchases of securities in advance of the Heartland acquisition.

• Net interest margin increased 10 basis points to 3.58% in the second quarter of 2025 compared to 3.48% in the first quarter of 2025. Excluding the effects of accretion on acquired loans, net interest margin expanded five basis points to 3.29% in the second quarter of 2025 compared to 3.24% in the first quarter of 2025. Loan yields were 5.98%, an increase of eight basis points from the prior quarter. Securities yields decreased one basis point to 3.87%, compared to 3.88% in the prior quarter. The cost of deposits declined 13 basis points from 1.93% in the prior quarter to 1.80% in the second quarter of 2025.

• The provision for credit losses was $4.4 million in the second quarter of 2025, compared to $9.3 million in the first quarter of 2025 and $4.9 million in the second quarter of 2024. Allowance coverage of 1.34% remains flat compared to March 31, 2025.

• Noninterest income totaled $24.5 million in the second quarter of 2025, an increase of $2.3 million, or 11%, compared to each of the prior quarter and the prior year quarter. Results in the second quarter of 2025 included:

• Service charges on deposits totaled $5.5 million, an increase of $0.4 million, or 7% from the prior quarter, and an increase of $0.2 million, or 4%, from the prior year quarter. Our investments in talent and significant market expansion across the state have resulted in continued growth in treasury management services to commercial customers.

• Wealth management income totaled $4.2 million, a decrease of $0.1 million, or 1%, from the prior quarter and an increase of $0.4 million, or 11%, from the prior year quarter. Assets under management have grown 16% year over year.

• Mortgage banking fees totaled $0.7 million, an increase of $0.3 million, or 70%, from the prior quarter and an increase of $0.1 million, or 18%, from the prior year quarter, due to higher saleable production.

• Insurance agency income totaled $1.3 million, a decrease of $0.3 million, or 20%, from the prior quarter and a decrease of $0.1 million, or 5%, from the prior year quarter.

• Bank Owned Life Insurance (“BOLI”) income totaled $3.4 million, an increase of $0.9 million, or 37%, from the prior quarter and an increase of $0.8 million, or 30% from the prior year quarter. The increase resulted from a $0.9 million death benefit payout.

• Other income totaled $7.5 million, an increase of $1.2 million, or 20%, from the prior quarter and an increase of $0.9 million, or 13%, from the prior year quarter. The increase in the second quarter of 2025 included $3.0 million in tax refunds received related to a prior bank acquisition, which was partially offset by lower gains on SBA loan sales and lower gains on SBIC investments compared to the first quarter of 2025.

• Noninterest expense was $91.7 million in the second quarter of 2025, an increase of $1.1 million, or 1%, compared to the prior quarter, and an increase of $9.2 million, or 11%, compared to the prior year quarter. Seacoast has prudently managed expenses while strategically investing to support continued growth. Results in the second quarter of 2025 included:

• Salaries and wages totaled $44.4 million, an increase of $2.2 million, or 5%, from the prior quarter and an increase of $5.5 million, or 14%, from the prior year quarter. The increase from the prior quarter represents higher performance driven incentive compensation.

• Employee benefits totaled $8.1 million, a decrease of $0.8 million, or 9%, compared to the seasonally higher prior quarter and an increase of $1.2 million, or 18%, from the prior year quarter.

• Outsourced data processing costs totaled $8.5 million, flat compared to the prior quarter and an increase of $0.3 million, or 4%, from the prior year quarter.

• Occupancy costs totaled $7.5 million, an increase of $0.1 million, or 2%, compared to the prior quarter and an increase of $0.3 million, or 4%, from the prior year quarter.

• Marketing expenses totaled $3.0 million, reflecting an increase of $0.2 million, or 8%, compared to the prior quarter and a decrease of $0.3 million, or 9%, from the prior year quarter, primarily associated with the timing of various campaigns to support customer growth initiatives.

• Legal and professional fees totaled $2.1 million, a decrease of $0.7 million, or 24%, compared to the prior quarter and an increase of $0.1 million, or 4%, from the prior year quarter.

• Merger-related charges totaled $2.4 million in the second quarter of 2025 and $1.1 million in the prior quarter.

• Seacoast recorded $12.6 million of income tax expense in the second quarter of 2025, compared to $9.4 million in the first quarter of 2025, and $8.9 million in the second quarter of 2024. Tax benefit related to stock-based compensation was immaterial in each period.

• The efficiency ratio improved to 56.95% in the second quarter of 2025, compared to 60.28% in the first quarter of 2025 and 60.21% in the prior year quarter. The adjusted efficiency ratio¹ also improved, to 55.36% in the second quarter of 2025, compared to 59.53% in the first quarter of 2025 and 60.21% in the prior year quarter. The improvement in the efficiency ratio quarter over quarter reflects higher net interest income and higher noninterest income, partially offset by modestly higher expenses. The Company continues to remain keenly focused on disciplined expense control, while making investments for growth.

Balance Sheet

• At June 30, 2025, the Company had total assets of $15.9 billion and total shareholders’ equity of $2.3 billion. Book value per share was $26.43 as of June 30, 2025, compared to $26.04 as of March 31, 2025, and $24.98 as of June 30, 2024. Tangible book value per share was $17.19 as of June 30, 2025, compared to $16.71 as of March 31, 2025, and $15.41 as of June 30, 2024. Year over year tangible book value per share increased 12%.

• Debt securities totaled $3.5 billion as of June 30, 2025, an increase of $226.9 million compared to March 31, 2025. Throughout the first half of 2025, strategic purchases were funded with short term FHLB borrowings. Debt securities as of June 30, 2025 included approximately $2.9 billion in securities classified as available-for-sale and recorded at fair value. The unrealized loss on these securities is fully reflected in the value presented on the balance sheet. The portfolio also includes $613.3 million in securities classified as held-to-maturity with a fair value of $503.2 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 increased $165.8 million, or 6.4% annualized during the quarter, totaling $10.6 billion as of June 30, 2025. The Company continues to exercise a disciplined approach to lending and is benefiting from the investments made in recent years to attract talent from large regional and national banks across its markets.

• Loan pipelines (loans in underwriting and approval or approved and not yet closed) totaled $920.9 million as of June 30, 2025, compared to $981.6 million at March 31, 2025 and $834.4 million at June 30, 2024.

• Commercial pipelines were $861.2 million as of June 30, 2025, compared to $904.1 million at March 31, 2025, and $773.1 million at June 30, 2024.

• Saleable residential pipelines were $14.4 million as of June 30, 2025, compared to $15.5 million at March 31, 2025, and $12.1 million at June 30, 2024. Retained residential pipelines were $29.2 million as of June 30, 2025, compared to $37.5 million at March 31, 2025, and $24.7 million at June 30, 2024.

• Consumer pipelines were $16.2 million as of June 30, 2025, compared to $24.4 million at March 31, 2025 and $24.5 million at June 30, 2024.

• Total deposits were $12.5 billion as of June 30, 2025, a decrease of $77.2 million, or 2.5% annualized, when compared to March 31, 2025.

• The cost of deposits declined 13 basis points from 1.93% in the prior quarter to 1.80% in the second quarter of 2025.

• At June 30, 2025, customer transaction account balances represented 47% of total deposits. The Company benefits from a granular deposit franchise, with the top ten depositors representing approximately 3% of total deposits.

• Consumer deposits represent 40% of overall deposit funding with an average consumer customer balance of $25 thousand. Commercial deposits represent 60% of overall deposit funding with an average business customer balance of $113 thousand.

• Federal Home Loan Bank advances totaled $715.0 million at June 30, 2025 with a weighted-average interest rate of 4.15% during the second quarter of 2025, compared to advances outstanding of $465.0 million at March 31, 2025 with a weighted-average interest rate of 4.26% in the first quarter of 2025. The Company utilized short-term fixed-rate advances to fund securities purchases in the first and second quarters of 2025.

Asset Quality

• The ratio of criticized and classified loans to total loans was 2.39% at June 30, 2025, compared to 2.41% at March 31, 2025, and 2.59% at June 30, 2024.

• Nonperforming loans were $64.2 million at June 30, 2025, compared to $71.0 million at March 31, 2025, and $59.9 million at June 30, 2024. Nonperforming loans to total loans outstanding were 0.61% at June 30, 2025, 0.68% at March 31, 2025, and 0.60% at June 30, 2024.

• Accruing past due loans were $14.2 million, or 0.13% of total loans, at June 30, 2025, compared to $17.2 million, or 0.15% of total loans, at March 31, 2025, and $29.5 million, or 0.30% of total loans, at June 30, 2024.

• Nonperforming assets to total assets were 0.44% at June 30, 2025, compared to 0.50% at March 31, 2025, and 0.45% at June 30, 2024.

• The ratio of allowance for credit losses to total loans was 1.34% at June 30, 2025, 1.34% at March 31, 2025, and 1.41% at June 30, 2024.

• Net charge-offs were $2.5 million in the second quarter of 2025, compared to $7.0 million in the first quarter of 2025 and $9.9 million in the second quarter of 2024.

• 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 $437 thousand, and the average commercial loan size is $872 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 as of June 30, 2025 at 35% and 239% of total bank-level risk-based capital², respectively, compared to 36% and 236%, respectively, at March 31, 2025. On a consolidated basis and as of June 30, 2025, construction and land development and commercial real estate loans represent 33% and 221%, respectively, of total consolidated risk-based capital².

Capital and Liquidity

• The Company continues to operate with a fortress balance sheet, with a Tier 1 capital ratio at June 30, 2025 of 14.6%² compared to 14.7% at March 31, 2025, and 14.8% at June 30, 2024. The Total capital ratio was 16.1%², the Common Equity Tier 1 capital ratio was 14.0%², and the Tier 1 leverage ratio was 11.1%² at June 30, 2025. The Company is considered “well capitalized” based on applicable U.S. regulatory capital ratio requirements.

• Cash and cash equivalents at June 30, 2025 totaled $332.4 million.

• The Company’s loan-to-deposit ratio was 84.96% at June 30, 2025, which should continue to provide liquidity and flexibility moving forward.

• Tangible common equity to tangible assets was 9.75% at June 30, 2025, compared to 9.58% at March 31, 2025, and 9.30% at June 30, 2024. If all held-to-maturity securities were adjusted to fair value, the tangible common equity ratio would have been 9.27% at June 30, 2025.

• At June 30, 2025, in addition to $332.4 million in cash, the Company had $5.9 billion in available borrowing capacity, including $3.5 billion in available collateralized lines of credit, $2.0 billion of unpledged debt securities available as collateral for potential additional borrowings, and available unsecured lines of credit of $0.3 billion.

OTHER INFORMATION

Conference Call In

Contacts

Michael Young

Treasurer & Director of Corporate Development & Investor Relations

(772) 403-0451

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