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SBCF Seacoast Banking Corp. Of Florida

Filed: 22 Apr 21, 4:34pm
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SEACOAST REPORTS FIRST QUARTER 2021 RESULTS
Wealth Management Exceeds $1 Billion in Assets Under Management
Loan Pipelines Expand by 44% in Line with Strong Florida Economic Recovery
Initiates Quarterly Cash Dividend

STUART, Fla., April 22, 2021 /GLOBE NEWSWIRE/ -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the first quarter of 2021 of $33.7 million, or $0.60 per diluted share, an increase of 15% compared to the fourth quarter of 2020. Adjusted net income1 for the first quarter of 2021 was $35.5 million, or $0.63 per diluted share, an increase of 16% compared to the fourth quarter of 2020. The ratio of tangible common equity to tangible assets was 10.71%, tangible book value per share increased to $16.62 and Tier 1 capital increased to 18.2%.
For the first quarter of 2021, return on average tangible assets was 1.70%, return on average tangible shareholders' equity was 15.62%, and the efficiency ratio was 53.21%, compared to 1.49%, 13.87%, and 48.23%, respectively, in the prior quarter. Adjusted return on average tangible assets1 in the first quarter of 2021 was 1.75%, adjusted return on average tangible shareholders' equity1 was 16.01%, and the adjusted efficiency ratio1 was 51.99%, compared to 1.50%, 14.00%, and 48.75%, respectively, in the prior quarter.
Charles M. Shaffer, Seacoast's President and CEO, said, “The Seacoast team delivered another record quarter, resulting in continued growth in tangible book value per share, ending the period at $16.62, up 15% over the prior year. Our wealth management team continues to implement a unique, high-quality approach to assisting high net worth families, foundations, and business owners in developing wealth and investment management strategies, resulting in strong growth year-over-year in assets under management. As the Florida population continues to swell and the economic recovery continues to take hold, we are capitalizing on this growth, as evidenced in our mortgage banking results, and in our loan pipelines, which increased 44% from year-end.
Mr. Shaffer added, “During the quarter, we announced the upcoming acquisition of Legacy Bank of Florida. This is an exceptional addition and further strengthens our presence in Florida’s largest MSA. The transaction, which is expected to close in the third quarter of 2021, will provide earnings per share accretion of 6% to 2022, and has nominal up-front dilution to tangible book value per share.”
On April 20, 2021, the Company’s Board of Directors approved a $0.13 cash dividend to shareholders of record on June 15, 2021, to be paid June 30, 2021.
Mr. Shaffer further commented, “I am pleased to announce the Board’s decision to authorize a quarterly dividend for our shareholders. The dividend demonstrates our continued confidence in the Company’s performance outlook. Asset quality, liquidity, and capital are all strong, and we continue to generate meaningful capital growth, bolstering our fortress balance sheet. Our capital ratios are more substantial than most of our peers, which continues to provide strategic flexibility, and issuing a dividend is yet another way we can provide total shareholder return while maintaining our balanced growth strategy.”
Financial Results
Income Statement
Net income was $33.7 million, or $0.60 per diluted share for the first quarter of 2021, compared to $29.3 million, or $0.53, for the prior quarter. Adjusted net income1 was $35.5 million, or $0.63 per diluted share for the first quarter of 2021, compared to $30.7 million, or $0.55, for the prior quarter.
Net revenues were $84.3 million in the first quarter of 2021, an increase of $0.6 million, or 1%, compared to the prior quarter. Adjusted revenues1 were $84.4 million in the first quarter of 2021, an increase of $0.7 million, or 1%, from the prior quarter.


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

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Net interest income totaled $66.6 million in the first quarter of 2021, a decrease of $2.2 million, or 3%, from the prior quarter due to lower loan balances and lower yields, partially offset by higher income from Paycheck Protection Program (“PPP”) loans and lower cost of deposits. During the first quarter of 2021, net interest income included $6.9 million in interest and fees earned on PPP loans compared to $5.2 million in the fourth quarter of 2020. Remaining deferred PPP loan fees totaling $13.5 million will be recognized over the loans' remaining contractual maturity or sooner, as loans are forgiven.
Net interest margin was 3.51% in the first quarter of 2021, compared to 3.59% in the fourth quarter of 2020. The effect of accretion of purchase discounts on acquired loans was an increase of 15 basis points in the first quarter of 2021, compared to an increase of 23 basis points in the fourth quarter of 2020. The effect of interest and fees on PPP loans was an increase of 11 basis points in the first quarter of 2021, and a decrease of one basis point in the fourth quarter of 2020. Excluding both these items, net interest margin declined 12 basis points to 3.25%, largely the result of significant growth in cash balances held on the balance sheet. The Company expects to deploy this cash in a disciplined and prudent manner, carefully navigating an economic outlook that includes expected increases in interest rates. The yield on loans, excluding PPP and accretion of purchase discount, decreased 8 basis points due to the impact of the overall lower rate environment. The yield on securities declined 8 basis points, resulting from elevated prepayments and lower yields on new purchases. The cost of deposits decreased six basis points, from 19 basis points in the fourth quarter of 2020 to 13 basis points in the first quarter of 2021, reflecting our continued repricing down of interest-bearing deposits and time deposits.
Noninterest income totaled $17.7 million in the first quarter of 2021, an increase of $2.7 million, or 18%, compared to the prior quarter. Results for the first quarter of 2021 included the following:
Mortgage banking fees were $4.2 million, compared to $3.6 million in the prior quarter, as rates remain low and an influx of new residents and businesses into Florida drive demand for mortgage originations.
Interchange revenue was a record $3.8 million, compared to $3.6 million in the prior quarter, with a higher volume of transactions and higher per-card spending contributing to the increase.
Wealth management income was a record $2.3 million in the current quarter, compared to $1.9 million in the fourth quarter of 2020. During the first quarter of 2021, assets under management increased $156 million to surpass $1.0 billion. This milestone was achieved as the result of the team’s success in delivering valuable services and advice to new clients, and collaborating with retail and commercial bankers across the franchise to build and develop existing relationships.
Included in other income in the first quarter of 2021 is $1.7 million in income associated with the resolution of contingencies on two loans acquired in 2017. Similar activity is not expected in subsequent periods.
The provision for credit losses was a net benefit of $5.7 million in the first quarter of 2021, compared to a $1.9 million expense in the prior quarter. The ratio of allowance for credit losses to total loans declined to 1.53% at March 31, 2021, compared to 1.62% at December 31, 2020. Excluding PPP loans, the ratio declined to 1.71% at March 31, 2021, compared to 1.79% at December 31, 2020. The decline in coverage reflects improvement in the economic outlook from the prior quarter.
Noninterest expense was $46.1 million in the first quarter of 2021, an increase of $2.4 million, or 6%, compared to the prior quarter. Changes from the fourth quarter of 2020 consisted of the following:
Employee benefits increased $1.1 million, or 27%, reflecting higher seasonal payroll taxes and 401(k) plan contributions typical of the first quarter.
Occupancy expenses include $0.3 million in charges associated with three branch consolidations completed during the first quarter of 2021.
Legal and professional fees increased by $2.1 million compared to the fourth quarter. The first quarter of 2021 includes $0.6 million in merger-related costs, while the fourth quarter benefited from the one-time recovery of certain legal expenses incurred during 2020.
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.    

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Foreclosed property expense decreased in the first quarter of 2021 by $1.9 million, reflecting a gain on the sale of an OREO property of $0.2 million compared to write-downs totaling $1.6 million on two properties in the prior quarter.
Seacoast recorded $10.2 million of income tax expense in the first quarter of 2021, compared to $8.8 million in the prior quarter. Tax impacts related to stock-based compensation were nominal each period.
The ratio of net adjusted noninterest expense1 to average tangible assets was 2.16% in the first quarter of 2021, compared to 2.00% in the prior quarter and 2.46% in the first quarter of 2020.
The efficiency ratio was 53.2% compared to 48.2% in the prior quarter. The adjusted efficiency ratio1 was 52.0% compared to 48.8% in the prior quarter. The fourth quarter of 2020 benefited from a one-time recovery of legal expenses and a release of reserves for unfunded commitments, while the first quarter of 2021 included a seasonal increase in employee benefits.

Balance Sheet
At March 31, 2021, the Company had total assets of $8.8 billion and total shareholders' equity of $1.2 billion. Book value per share was $20.89, and tangible book value per share was $16.62, compared to $20.46 and $16.16, respectively, on December 31, 2020, and $18.82 and $14.42, on March 31, 2020. This reflects growth in tangible book value per share of 15% year-over-year. Increasing rates impacted accumulated other comprehensive income by $10.8 million, offsetting the quarter-over-quarter growth in tangible book value by $0.20 per share.
Debt securities totaled $1.6 billion on March 31, 2021, a decrease of $18.9 million compared to December 31, 2020. Purchases during the quarter were primarily in government-sponsored mortgage-backed securities with an average yield of 1.44%. On January 1, 2021, the Company transferred $211.6 million in debt securities from available-for-sale to held-to-maturity, as it has the intent and ability to hold these securities to maturity.
Loans totaled $5.7 billion on March 31, 2021, a decrease of $73.9 million, or 1%, compared to December 31, 2020. Given the significant economic performance in the State of Florida, low unemployment, and clear evidence of a V-shaped recovery, the Company returned to its pre-pandemic credit policy and conservative underwriting guidelines.
With the renewal of the Paycheck Protection Program (“PPP”), Seacoast originated over 2,400 loans for $232.5 million in the first quarter of 2021. Fees earned from the Small Business Administration (“SBA”) on the origination of these loans, net of related costs, totaled $9.4 million. When combined with fees remaining to be recognized on PPP loans originated in 2020, $13.5 million in deferred PPP loan fees will be recognized over the loans’ contractual maturity or sooner, as loans are forgiven. During the first quarter of 2021, $213.8 million in PPP loans funded in 2020 were forgiven by the SBA.
Loan originations were $668.4 million in the first quarter of 2021, compared to $541.0 million in the fourth quarter of 2020, an increase of 24%.
Commercial originations during the first quarter of 2021 were $204.3 million, compared to $277.4 million in the fourth quarter of 2020. The decrease reflects lower seasonal demand quarter-over-quarter, but an increase of 11% compared to the first quarter of 2020. We expect production to continue to increase throughout 2021.
Seacoast participated in the most recent round of PPP funding with $232.5 million in originations during the quarter.
Residential loans originated for sale in the secondary market were $138.3 million in the first quarter of 2021, compared to $161.6 million in the fourth quarter of 2020. The benefit of continued low rates and ongoing inflows of new residents and businesses into Florida drove continued demand for mortgage originations.
Closed residential loans retained in the portfolio totaled $46.6 million in the first quarter of 2021, compared to $54.5 million in the fourth quarter of 2020.
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.    

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Consumer originations in the first quarter of 2021 were $46.7 million, compared to $47.5 million in the fourth quarter of 2020.
Pipelines (loans in underwriting and approval or approved and not yet closed) totaled $433.6 million on March 31, 2021, an increase of 44% from the fourth quarter of 2020.
Commercial pipelines were $240.9 million as of March 31, 2021, an increase of 44% from $166.7 million for the fourth quarter of 2020, reflecting increasing demand in line with Florida’s strong economic recovery.
Residential saleable pipelines were $92.1 million as of March 31, 2021, compared to $92.0 million as of the prior quarter end. Retained residential pipelines were $72.4 million as of March 31, 2021, compared to $25.1 million as of the prior quarter end. The increase in the retained residential pipeline reflects a selective Florida correspondent program we expanded during the quarter to generate both portfolio growth and cross-sell opportunities for depository and other products.
Consumer pipelines were $28.1 million as of March 31, 2021, compared to $18.2 million as of the prior quarter-end.
Total deposits were $7.4 billion as of March 31, 2021, an increase of $453.2 million, or 7%, compared to December 31, 2020.
The overall cost of deposits declined to 13 basis points in the first quarter of 2021 from 19 basis points in the prior quarter.
Total transaction account balances increased $477.3 million, or 12%, quarter-over-quarter, reflecting the impact of the new PPP originations, ongoing stimulus programs and tax refunds and growth in relationships. Transaction accounts represent 59% of overall deposit funding.
Interest-bearing deposits (interest-bearing demand, savings, and money market deposits) increased $275.9 million, or 7%, quarter-over-quarter to $4.1 billion, noninterest-bearing demand deposits increased $395.5 million, or 17%, to $2.7 billion, and CDs (excluding brokered) declined $77.8 million, or 13%, to $519.5 million.
As of March 31, 2021, deposits per banking center were $154 million, compared to $118 million on March 31, 2020.
Asset Quality
Nonperforming loans decreased by $0.8 million to $35.3 million at March 31, 2021. Nonperforming loans to total loans outstanding were 0.62% at March 31, 2021, 0.63% at December 31, 2020, and 0.48% at March 31, 2020.
Nonperforming assets to total assets were 0.58% at March 31, 2021, 0.59% at December 31, 2020, and 0.55% at March 31, 2020.
The ratio of allowance for credit losses to total loans was 1.53% at March 31, 2021, 1.62% at December 31, 2020, and 1.61% at March 31, 2020. Excluding PPP loans, the ratio of allowance for credit losses to total loans at March 31, 2021, was 1.71%, compared to 1.79% at December 31, 2020. The decline in coverage reflects an improvement in the economic outlook from the prior quarter, lower net charge-offs, and lower loans outstanding.
Net charge-offs were $0.4 million, or 0.03%, of average loans for the first quarter of 2021 compared to $3.1 million, or 0.21%, of average loans in the fourth quarter of 2020 and $1.0 million, or 0.07%, of average loans in the first quarter of 2020. Net charge-offs for the four most recent quarters averaged 0.12%.
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 $408,000, reflecting an ability to maintain granularity within the overall loan portfolio.
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.    

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Construction and land development and commercial real estate loans remain well below regulatory guidance at 23% and 168% of total bank-level risk based capital, respectively, compared to 26% and 169% respectively, in the fourth quarter of 2020. On a consolidated basis, construction and land development and commercial real estate loans represent 21% and 155%, respectively, of total consolidated risk-based capital.
Capital and Liquidity
The tier 1 capital ratio increased to 18.2% from 17.4% at December 31, 2020, and 15.5% March 31, 2020. The total capital ratio was 19.2% and the tier 1 leverage ratio was 12.1% at March 31, 2021.
Cash and cash equivalents at March 31, 2021 totaled $979.3 million, an increase of $575.2 million from December 31, 2020.
Tangible common equity to tangible assets was 10.71% at March 31, 2021, compared to 11.01% at December 31, 2020 and 10.68% at March 31, 2020. Tangible common equity declined quarter-over-quarter as a result of a buildup of cash on the balance sheet. The Company will strategically deploy this cash in a disciplined and prudent manner, carefully navigating an outlook that includes expected increases in interest rates.
At March 31, 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. $1.3 billion of debt securities and $703.8 million in residential and commercial real estate loans are available as collateral for potential borrowings.
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.    

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FINANCIAL HIGHLIGHTS
(Amounts in thousands except per share data)(Unaudited)
Quarterly Trends
1Q'214Q'203Q'202Q'201Q'20
Selected Balance Sheet Data:
Total Assets$8,811,820 $8,342,392 $8,287,840 $8,084,013 $7,352,894 
Gross Loans5,661,492 5,735,349 5,858,029 5,772,052 5,317,208 
Total Deposits7,385,749 6,932,561 6,914,843 6,666,783 5,887,499 
Performance Measures:
Net Income$33,719 $29,347 $22,628 $25,080 $709 
Net Interest Margin3.51 %3.59 %3.40 %3.70 %3.93 %
Average Diluted Shares Outstanding55,992 55,739 54,301 53,308 52,284 
Diluted Earnings Per Share (EPS)$0.60 $0.53 $0.42 $0.47 $0.01 
Return on (annualized):
Average Assets (ROA)1.61 %1.39 %1.11 %1.27 %0.04 %
Average Tangible Assets (ROTA)2
1.70 1.49 1.20 1.37 0.11 
Average Tangible Common Equity (ROTCE)2
15.62 13.87 11.35 13.47 0.95 
Tangible Common Equity to Tangible Assets2
10.71 11.01 10.67 10.19 10.68 
Tangible Book Value Per Share2
$16.62 $16.16 $15.57 $15.11 $14.42 
Efficiency Ratio53.21 %48.23 %61.65 %50.11 %59.85 %
Adjusted Operating Measures1:
Adjusted Net Income$35,497 $30,700 $27,336 $25,452 $5,462 
Adjusted Diluted EPS0.63 0.55 0.50 0.48 0.10 
Adjusted ROTA2
1.75 %1.50 %1.38 %1.33 %0.32 %
Adjusted ROTCE2
16.01 14.00 13.06 13.09 2.86 
Adjusted Efficiency Ratio51.99 48.75 54.82 49.60 53.55 
Net Adjusted Noninterest Expense as a
Percent of Average Tangible Assets2
2.16 2.00 2.24 2.11 2.46 
Other Data:
Market capitalization3
$2,003,866 $1,626,913 $994,690 $1,081,009 $965,097 
Full-time equivalent employees953 965 968 924 919 
Number of ATMs75 77 77 76 76 
Full-service banking offices48 51 51 50 50 
Registered online users126,352 123,615 121,620 117,273 113,598 
Registered mobile devices117,959 115,129 110,241 108,062 104,108 
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.



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First 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 provide new opportunities for associates. In the first quarter of 2021, the Company announced the upcoming acquisition of Legacy Bank of Florida, which is expected to close in the third quarter of 2021. The acquisition will add experienced bankers in a growing market, further supporting sustainable, profitable growth, and will increase Seacoast’s deposits in Palm Beach and Broward counties by approximately 40%.
    
Capitalizing on Seacoast’s Early Commitment to Digital Transformation
As customer preferences change, Seacoast continues to evolve the branch footprint, redirecting capacity into attractive growth markets. In alignment with this strategy, three banking center locations were consolidated in the first quarter of 2021, representing an estimated annual savings of $0.9 million.
Seacoast and its customers are benefiting from our fully digital PPP origination platform and our automated PPP forgiveness solution, which streamline the processes for clients while integrating with Seacoast’s existing technology infrastructure. In the first quarter of 2021, with the re-opening of the PPP lending program, Seacoast originated $232.5 million in PPP loans. Also in the first quarter of 2021, Seacoast processed $213.8 million in loan forgiveness.
During the first quarter of 2021, Seacoast launched a large-scale initiative to upgrade all ATMs across the network through a third-party partnership, providing our customers with a best-in-class experience, while reducing the cost to operate the ATM network by $0.9 million annually.
Scaling and Evolving Our Culture
As Seacoast grows the organization, we continue to expand our leadership team with talented individuals holding diverse backgrounds. In the first quarter of 2021, Ron York joined Seacoast serving as EVP, Treasury Management Executive. Formerly with First Horizon Bank, Ron will look to evolve Seacoast’s Treasury Management products, services, and capabilities. Additionally, the Company hired Pam Notarantonio as the regional credit officer for the Central Florida market. Pam joins Seacoast after 32 years with Wells Fargo and brings extensive credit leadership experience to the role. This follows the hiring of Dan Hilken, also previously with Wells Fargo, in the fourth quarter as the regional market president for Central Florida.
Seacoast believes that diversity enhances our entire workforce, and we strive to make inclusion a hallmark of our culture. Our Associate Resource Group (“ARG”) programs are led by and comprised of associates who have diverse backgrounds and experiences, and who share a common interest in professional development, improving corporate culture, and building stronger communities. Currently, Seacoast ARGs include Black Associates and Allies Network, LGBTQ+, Veterans, and Women Mean Business. Each is sponsored and supported by senior leaders across the enterprise.
Seacoast launched a new associate engagement & performance management platform in February of 2021. The tool provides an integrated platform supporting associate engagement and performance management routines, further supporting the bank’s high performance culture.
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.    

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OTHER INFORMATION
Conference Call Information
Seacoast will host a conference call on April 23, 2021 at 10:00 a.m. (Eastern Time) to discuss the first quarter and year end 2021 earnings results and business trends. Investors may call in (toll-free) by dialing (800) 774-6070 (passcode: 8255 031#; 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 April 23, 2021, by clicking here and using passcode 50130036.

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 April 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 $8.8 billion in assets and $7.4 billion in deposits as of March 31, 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.

Cautionary Notice Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning, and protections, of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, cost savings, enhanced revenues, economic and seasonal conditions in our markets, and improvements to reported earnings that may be realized from cost controls, tax law changes, new initiatives and for integration of banks that we have acquired, 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 related effects on the U.S. economy. Actual results may differ from those set forth in the forward-looking statements.

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

All statements other than statements of historical fact could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may", "will", "anticipate", "assume", "should", "support", "indicate", "would", "believe", "contemplate", "expect", "estimate", "continue", "further", "plan", "point to", "project", "could", "intend", "target" or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the effects of future economic and market conditions, including seasonality and the adverse impact of COVID-19 (economic and otherwise); governmental monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve, as well as legislative, tax and regulatory changes; changes in accounting policies, rules and practices, including the impact of the adoption of CECL; our participation in the Paycheck Protection Program ("PPP"); the risks of changes in interest rates on the level and composition of deposits, loan demand, liquidity and




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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.

The COVID-19 pandemic is adversely affecting Seacoast, its customers, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on its business, financial position, result of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect Seacoast’s revenues and values of its assets and liabilities, reduce the availability of funding to certain financial institutions, lead to a tightening of credit, and increase stock price volatility.

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 under "Special Cautionary Notice Regarding Forward-looking




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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
(Amounts in thousands, except ratios and per share data)1Q'214Q'203Q'202Q'201Q'20
Summary of Earnings
Net income$33,719 $29,347 $22,628 $25,080 $709 
Adjusted net income1
35,497 30,700 27,336 25,452 5,462 
Net interest income2
66,741 68,903 63,621 67,388 63,291 
Net interest margin2,3
3.51 %3.59 %3.40 %3.70 %3.93 %
Performance Ratios
Return on average assets-GAAP basis3
1.61 %1.39 %1.11 %1.27 %0.04 %
Return on average tangible assets-GAAP basis3,4
1.70 1.49 1.20 1.37 0.11 
Adjusted return on average tangible assets1,3,4
1.75 1.50 1.38 1.33 0.32 
Net adjusted noninterest expense to average tangible assets1,3,4
2.16 2.00 2.24 2.11 2.46 
Return on average shareholders' equity-GAAP basis3
12.03 10.51 8.48 9.96 0.29 
Return on average tangible common equity-GAAP basis3,4
15.62 13.87 11.35 13.47 0.95 
Adjusted return on average tangible common equity1,3,4
16.01 14.00 13.06 13.09 2.86 
Efficiency ratio5
53.21 48.23 61.65 50.11 59.85 
Adjusted efficiency ratio1
51.99 48.75 54.82 49.60 53.55 
Noninterest income to total revenue (excluding securities gains/losses)21.07 17.85 21.06 17.00 18.84 
Tangible common equity to tangible assets4
10.71 11.01 10.67 10.19 10.68 
Average loan-to-deposit ratio81.39 84.48 87.83 88.48 93.02 
End of period loan-to-deposit ratio77.48 83.72 85.77 87.40 90.81 
Per Share Data
Net income diluted-GAAP basis$0.60 $0.53 $0.42 $0.47 $0.01 
Net income basic-GAAP basis0.61 0.53 0.42 0.47 0.01 
Adjusted earnings1
0.63 0.55 0.50 0.48 0.10 
Book value per share common20.89 20.46 19.91 19.45 18.82 
Tangible book value per share16.62 16.16 15.57 15.11 14.42 
Cash dividends declared — — — — 
1Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP.
2Calculated on a fully taxable equivalent basis using amortized cost.
3These ratios are stated on an annualized basis and are not necessarily indicative of future periods.
4The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.
5Defined as noninterest expense less amortization of intangibles and gains, losses, and expenses on foreclosed properties divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains and losses).




CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Quarterly Trends
(Amounts in thousands, except per share data)1Q'214Q'203Q'202Q'201Q'20
Interest on securities:
Taxable$6,298 $6,477 $6,972 $7,573 $8,696 
Nontaxable148 86 125 121 122 
Fees on PPP loans5,390 3,603 161 4,010 — 
Interest on PPP loans1,496 1,585 1,558 1,058 — 
Interest and fees on loans - excluding PPP loans55,412 60,407 58,768 59,776 63,440 
Interest on federal funds sold and other investments586 523 556 684 734 
Total Interest Income69,330 72,681 68,140 73,222 72,992 
Interest on deposits1,065 1,228 1,299 1,203 3,190 
Interest on time certificates1,187 2,104 2,673 3,820 4,768 
Interest on borrowed money468 558 665 927 1,857 
Total Interest Expense2,720 3,890 4,637 5,950 9,815 
Net Interest Income66,610 68,791 63,503 67,272 63,177 
Provision for credit losses(5,715)1,900 (845)7,611 29,513 
Net Interest Income After Provision for Credit Losses72,325 66,891 64,348 59,661 33,664 
Noninterest income:
Service charges on deposit accounts2,338 2,423 2,242 1,939 2,825 
Interchange income3,820 3,596 3,682 3,187 3,246 
Wealth management income2,323 1,949 1,972 1,719 1,867 
Mortgage banking fees4,225 3,646 5,283 3,559 2,208 
Marine finance fees189 145 242 157 146 
SBA gains287 113 252 181 139 
BOLI income859 889 899 887 886 
Other3,744 2,187 2,370 2,147 3,352 
17,785 14,948 16,942 13,776 14,669 
Securities (losses) gains, net(114)(18)1,230 19 
Total Noninterest Income17,671 14,930 16,946 15,006 14,688 
Noninterest expenses:
Salaries and wages21,393 21,490 23,125 20,226 23,698 
Employee benefits4,980 3,915 3,995 3,379 4,255 
Outsourced data processing costs4,468 4,233 6,128 4,059 4,633 
Telephone / data lines785 774 705 791 714 
Occupancy3,789 3,554 3,858 3,385 3,353 
Furniture and equipment1,254 1,317 1,576 1,358 1,623 
Marketing1,168 1,045 1,513 997 1,278 
Legal and professional fees2,582 509 3,018 2,277 3,363 
FDIC assessments526 528 474 266 — 
Amortization of intangibles1,211 1,421 1,497 1,483 1,456 
Foreclosed property expense and net (gain) loss on sale(65)1,821 512 245 (315)
Provision for credit losses on unfunded commitments (795)756 178 46 
Other4,029 3,869 4,517 3,755 3,694 
Total Noninterest Expense46,120 43,681 51,674 42,399 47,798 
Income Before Income Taxes43,876 38,140 29,620 32,268 554 
Income taxes10,157 8,793 6,992 7,188 (155)
Net Income$33,719 $29,347 $22,628 $25,080 $709 
Per share of common stock:
Net income diluted$0.60 $0.53 $0.42 $0.47 $0.01 
Net income basic0.61 0.53 0.42 0.47 0.01 
Cash dividends declared — — — — 
Average diluted shares outstanding55,992 55,739 54,301 53,308 52,284 
Average basic shares outstanding55,271 55,219 53,978 52,985 51,803 



CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
March 31,December 31,September 30,June 30,March 31,
(Amounts in thousands)20212020202020202020
Assets
Cash and due from banks$89,123 $86,630 $81,692 $84,178 $82,111 
Interest bearing deposits with other banks890,202 317,458 227,876 440,142 232,763 
Total Cash and Cash Equivalents979,325 404,088 309,568 524,320 314,874 
Time deposits with other banks750 750 2,247 2,496 3,742 
Debt Securities:
Available for sale (at fair value)1,051,396 1,398,157 1,286,858 976,025 910,311 
Held to maturity (at amortized cost)512,307 184,484 207,376 227,092 252,373 
Total Debt Securities1,563,703 1,582,641 1,494,234 1,203,117 1,162,684 
Loans held for sale60,924 68,890 73,046 54,943 29,281 
Loans5,661,492 5,735,349 5,858,029 5,772,052 5,317,208 
Less: Allowance for credit losses(86,643)(92,733)(94,013)(91,250)(85,411)
Net Loans5,574,849 5,642,616 5,764,016 5,680,802 5,231,797 
Bank premises and equipment, net70,385 75,117 76,393 69,041 71,540 
Other real estate owned15,549 12,750 15,890 15,847 14,640 
Goodwill221,176 221,176 221,176 212,146 212,085 
Other intangible assets, net15,382 16,745 18,163 17,950 19,461 
Bank owned life insurance132,634 131,776 130,887 127,954 127,067 
Net deferred tax assets24,497 23,629 25,503 21,404 19,766 
Other assets152,646 162,214 156,717 153,993 145,957 
Total Assets$8,811,820 $8,342,392 $8,287,840 $8,084,013 $7,352,894 
Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest demand$2,685,247 $2,289,787 $2,400,744 $2,267,435 $1,703,628 
Interest-bearing demand1,647,935 1,566,069 1,385,445 1,368,146 1,234,193 
Savings768,362 689,179 655,072 619,251 554,836 
Money market1,671,179 1,556,370 1,457,078 1,232,892 1,124,378 
Other time certificates373,297 425,878 457,964 445,176 489,669 
Brokered time certificates93,500 233,815 381,028 572,465 597,715 
Time certificates of more than $250,000146,229 171,463 177,512 161,418 183,080 
Total Deposits7,385,749 6,932,561 6,914,843 6,666,783 5,887,499 
Securities sold under agreements to repurchase109,171 119,609 89,508 92,125 64,723 
Federal Home Loan Bank borrowings — 35,000 135,000 265,000 
Subordinated debt71,436 71,365 71,295 71,225 71,155 
Other liabilities90,115 88,455 78,853 88,277 72,730 
Total Liabilities7,656,471 7,211,990 7,189,499 7,053,410 6,361,107 
Shareholders' Equity
Common stock5,529 5,524 5,517 5,299 5,271 
Additional paid in capital858,688 856,092 854,188 811,328 809,533 
Retained earnings290,420 256,701 227,354 204,719 179,646 
Treasury stock(8,693)(8,285)(7,941)(8,037)(7,422)
1,145,944 1,110,032 1,079,118 1,013,309 987,028 
Accumulated other comprehensive income, net9,405 20,370 19,223 17,294 4,759 
Total Shareholders' Equity1,155,349 1,130,402 1,098,341 1,030,603 991,787 
Total Liabilities & Shareholders' Equity$8,811,820 $8,342,392 $8,287,840 $8,084,013 $7,352,894 
Common shares outstanding55,294 55,243 55,169 52,991 52,709 




CONSOLIDATED QUARTERLY FINANCIAL DATA(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
(Amounts in thousands)1Q'214Q'203Q'202Q'201Q'20
Credit Analysis
Net charge-offs - non-acquired loans$292 $3,028 $1,112 $1,714 $1,316 
Net charge-offs (recoveries) - acquired loans78 99 624 37 (343)
Total Net Charge-offs370 3,127 1,736 1,751 973 
Net charge-offs to average loans - non-acquired loans0.02 %0.20 %0.08 %0.12 %0.10 %
Net charge-offs (recoveries) to average loans - acquired loans0.01 0.01 0.04 — (0.03)
Total Net Charge-offs to Average Loans0.03 0.21 0.12 0.12 0.07 
Allowance for credit losses - non-acquired loans$66,523 $69,786 $70,388 $73,587 $69,498 
Allowance for credit losses - acquired loans20,120 22,947 23,625 17,663 15,913 
Total Allowance for Credit Losses$86,643 $92,733 $94,013 $91,250 $85,411 
Non-acquired loans at end of period$4,208,911 $4,196,205 $4,157,376 $4,315,892 $4,373,378 
Acquired loans at end of period870,928 972,183 1,061,853 879,710 943,830 
Paycheck Protection Program loans at end of period1
581,653 566,961 638,800 576,450 — 
Total Loans$5,661,492 $5,735,349 $5,858,029 $5,772,052 $5,317,208 
Non-acquired loans allowance for credit losses to non-acquired loans at end of period1.58 %1.66 %1.69 %1.71 %1.59 %
Total allowance for credit losses to total loans at end of period1.53 1.62 1.60 1.58 1.61 
Total allowance for credit losses to total loans, excluding PPP loans1.71 1.79 1.80 1.76 1.61 
Purchase discount on acquired loans at end of period2.93 2.86 3.01 3.29 3.36 
End of Period
Nonperforming loans$35,328 $36,110 $36,897 $30,051 $25,582 
Other real estate owned10,836 10,182 12,299 10,967 11,048 
Properties previously used in bank operations included in other real estate owned4,713 2,569 3,592 4,880 3,592 
Total Nonperforming Assets$50,877 $48,861 $52,788 $45,898 $40,222 
Accruing troubled debt restructures (TDRs)$4,067 $4,182 $10,190 $10,338 $10,833 
Nonperforming Loans to Loans at End of Period0.62 %0.63 %0.63 %0.52 %0.48 %
Nonperforming Assets to Total Assets at End of Period0.58 0.59 0.64 0.57 0.55 
March 31,December 31,September 30,June 30,March 31,
Loans20212020202020202020
Construction and land development$227,117 $245,108 $280,610 $298,835 $295,405 
Commercial real estate - owner occupied1,133,085 1,141,310 1,125,460 1,076,650 1,082,893 
Commercial real estate - non-owner occupied1,438,365 1,395,854 1,394,464 1,392,787 1,381,096 
Residential real estate1,246,549 1,342,628 1,393,396 1,468,171 1,559,754 
Commercial and financial860,813 854,753 833,083 757,232 796,038 
Consumer173,910 188,735 192,216 201,927 202,022 
Paycheck Protection Program581,653 566,961 638,800 576,450 — 
Total Loans$5,661,492 $5,735,349 $5,858,029 $5,772,052 $5,317,208 
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
1Q'214Q'201Q'20
AverageYield/AverageYield/AverageYield/
(Amounts in thousands)BalanceInterestRateBalanceInterestRateBalanceInterestRate
Assets
Earning assets:
Securities:
Taxable$1,550,457 $6,298 1.62 %$1,496,536 $6,477 1.73 %$1,152,473 $8,696 3.02 %
Nontaxable25,932 187 2.89 25,943 109 1.68 19,740 152 3.09 
Total Securities1,576,389 6,485 1.65 1,522,479 6,586 1.73 1,172,213 8,848 3.02 
Federal funds sold and other investments377,344 586 0.63 197,379 523 1.05 87,924 734 3.36 
Loans excluding PPP loans5,149,642 55,504 4.37 5,276,224 60,497 4.56 5,215,234 63,524 4.90 
PPP loans609,733 6,886 4.58 629,855 5,187 3.28 — — — 
Total Loans5,759,375 62,390 4.39 5,906,079 65,684 4.42 5,215,234 63,524 4.90 
Total Earning Assets7,713,108 69,461 3.65 7,625,937 72,793 3.80 6,475,371 73,106 4.54 
Allowance for credit losses(91,735)(93,148)(56,931)
Cash and due from banks255,685 235,519 90,084 
Premises and equipment74,272 76,001 67,585 
Intangible assets237,323 238,631 226,712 
Bank owned life insurance132,079 131,208 126,492 
Other assets164,622 162,248 126,230 
Total Assets$8,485,354 $8,376,396 $7,055,543 
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand$1,600,490 $258 0.07 %$1,458,299 $249 0.07 %$1,173,930 $834 0.29 %
Savings722,274 137 0.08 672,864 166 0.10 526,727 348 0.27 
Money market1,609,938 670 0.17 1,523,960 813 0.21 1,128,757 2,008 0.72 
Time deposits711,320 1,187 0.68 911,091 2,104 0.92 1,151,750 4,768 1.67 
Securities sold under agreements to repurchase112,834 41 0.15 101,665 42 0.16 71,065 167 0.95 
Federal Home Loan Bank borrowings   15,978 80 1.99 250,022 968 1.56 
Other borrowings71,390 427 2.43 71,321 436 2.43 71,114 722 4.08 
Total Interest-Bearing Liabilities4,828,246 2,720 0.23 4,755,178 3,890 0.33 4,373,365 9,815 0.90 
Noninterest demand2,432,038 2,424,523 1,625,215 
Other liabilities88,654 85,622 62,970 
Total Liabilities7,348,938 7,265,323 6,061,550 
Shareholders' equity1,136,416 1,111,073 993,993 
Total Liabilities & Equity$8,485,354 $8,376,396 $7,055,543 
Cost of deposits0.13 %0.19 %0.57 %
Interest expense as a % of earning assets0.14 %0.20 %0.61 %
Net interest income as a % of earning assets$66,741 3.51 %$68,903 3.59 %$63,291 3.93 %
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
March 31,December 31,September 30,June 30,March 31,
(Amounts in thousands)20212020202020202020
Customer Relationship Funding
Noninterest demand
Commercial$2,189,564 $1,821,361 $1,973,494 $1,844,288 $1,336,352 
Retail379,257 350,783 322,559 314,723 271,916 
Public funds83,315 90,973 70,371 74,674 71,029 
Other33,111 26,670 34,320 33,750 24,331 
Total Noninterest Demand2,685,247 2,289,787 2,400,744 2,267,435 1,703,628 
Interest-bearing demand
Commercial497,047 454,909 413,513 412,846 349,315 
Retail895,853 839,958 777,078 733,772 671,378 
Public funds255,035 271,202 194,854 221,528 213,500 
Total Interest-Bearing Demand1,647,935 1,566,069 1,385,445 1,368,146 1,234,193 
Total transaction accounts
Commercial2,686,611 2,276,270 2,387,007 2,257,134 1,685,667 
Retail1,275,110 1,190,741 1,099,637 1,048,495 943,294 
Public funds338,350 362,175 265,225 296,202 284,529 
Other33,111 26,670 34,320 33,750 24,331 
Total Transaction Accounts4,333,182 3,855,856 3,786,189 3,635,581 2,937,821 
Savings768,362 689,179 655,072 619,251 554,836 
Money market
Commercial692,537 611,623 634,697 586,416 487,759 
Retail701,453 661,311 613,532 579,126 572,785 
Brokered197,389 196,616 141,808 — — 
Public funds79,800 86,820 67,041 67,350 63,834 
Total Money Market1,671,179 1,556,370 1,457,078 1,232,892 1,124,378 
Brokered time certificates93,500 233,815 381,028 572,465 597,715 
Other time certificates519,526 597,341 635,476 606,594 672,749 
613,026 831,156 1,016,504 1,179,059 1,270,464 
Total Deposits$7,385,749 $6,932,561 $6,914,843 $6,666,783 $5,887,499 
Customer sweep accounts$109,171 $119,609 $89,508 $92,125 $64,723 





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
(Amounts in thousands, except per share data)1Q'214Q'203Q'202Q'201Q'20
Net Income$33,719 $29,347 $22,628 $25,080 $709 
Total noninterest income17,671 14,930 16,946 15,006 14,688 
Securities losses (gains), net114 18 (4)(1,230)(19)
Total Adjustments to Noninterest Income114 18 (4)(1,230)(19)
Total Adjusted Noninterest Income17,785 14,948 16,942 13,776 14,669 
Total noninterest expense46,120 43,681 51,674 42,399 47,798 
Merger related charges(581)— (4,281)(240)(4,553)
Amortization of intangibles(1,211)(1,421)(1,497)(1,483)(1,456)
Business continuity expenses — — — (307)
Branch reductions and other expense initiatives(449)(354)(464)— — 
Total Adjustments to Noninterest Expense(2,241)(1,775)(6,242)(1,723)(6,316)
Total Adjusted Noninterest Expense43,879 41,906 45,432 40,676 41,482 
Income Taxes10,157 8,793 6,992 7,188 (155)
Tax effect of adjustments577 440 1,530 121 1,544 
Total Adjustments to Income Taxes577 440 1,530 121 1,544 
Adjusted Income Taxes10,734 9,233 8,522 7,309 1,389 
Adjusted Net Income$35,497 $30,700 $27,336 $25,452 $5,462 
Earnings per diluted share, as reported$0.60 $0.53 $0.42 $0.47 $0.01 
Adjusted Earnings per Diluted Share0.63 0.55 0.50 0.48 0.10 
Average diluted shares outstanding55,992 55,739 54,301 53,308 52,284 
Adjusted Noninterest Expense$43,879 $41,906 $45,432 $40,676 $41,482 
Provision for credit losses on unfunded commitments 795 (756)(178)(46)
Foreclosed property expense and net gain / (loss) on sale65 (1,821)(512)(245)315 
Net Adjusted Noninterest Expense$43,944 $40,880 $44,164 $40,253 $41,751 
Revenue$84,281 $83,721 $80,449 $82,278 $77,865 
Total Adjustments to Revenue114 18 (4)(1,230)(19)
Impact of FTE adjustment131 112 118 116 114 
Adjusted Revenue on a fully taxable equivalent basis$84,526 $83,851 $80,563 $81,164 $77,960 
Adjusted Efficiency Ratio51.99 %48.75 %54.82 %49.60 %53.55 %
Net Interest Income$66,610 $68,791 $63,503 $67,272 $63,177 
Impact of FTE adjustment131 112 118 116 114 
Net Interest Income including FTE adjustment$66,741 $68,903 $63,621 $67,388 $63,291 
Total noninterest income17,671 14,930 16,946 15,006 14,688 
Total noninterest expense46,120 43,681 51,674 42,399 47,798 
Pre-Tax Pre-Provision Earnings$38,292 $40,152 $28,893 $39,995 $30,181 
Total Adjustments to Noninterest Income114 18 (4)(1,230)(19)
Total Adjustments to Noninterest Expense(2,176)(2,801)(7,510)(2,146)(6,047)
Adjusted Pre-Tax Pre-Provision Earnings$40,582 $42,971 $36,399 $40,911 $36,209 
Average Assets$8,485,354 $8,376,396 $8,086,890 $7,913,002 $7,055,543 
Less average goodwill and intangible assets(237,323)(238,631)(228,801)(230,871)(226,712)
Average Tangible Assets$8,248,031 $8,137,765 $7,858,089 $7,682,131 $6,828,831 
Return on Average Assets (ROA)1.61 %1.39 %1.11 %1.27 %0.04 %
Impact of removing average intangible assets and related amortization0.09 0.10 0.09 0.10 0.07 
Return on Average Tangible Assets (ROTA)1.70 1.49 1.20 1.37 0.11 
Impact of other adjustments for Adjusted Net Income0.05 0.01 0.18 (0.04)0.21 
Adjusted Return on Average Tangible Assets1.75 1.50 1.38 1.33 0.32 



GAAP TO NON-GAAP RECONCILIATION(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Quarterly Trends
(Amounts in thousands, except per share data)1Q'214Q'203Q'202Q'201Q'20
Average Shareholders' Equity$1,136,416 $1,111,073 $1,061,807 $1,013,095 $993,993 
Less average goodwill and intangible assets(237,323)(238,631)(228,801)(230,871)(226,712)
Average Tangible Equity$899,093 $872,442 $833,006 $782,224 $767,281 
Return on Average Shareholders' Equity12.03 %10.51 %8.48 %9.96 %0.29 %
Impact of removing average intangible assets and related amortization3.59 3.36 2.87 3.51 0.66 
Return on Average Tangible Common Equity (ROTCE)15.62 13.87 11.35 13.47 0.95 
Impact of other adjustments for Adjusted Net Income0.39 0.13 1.71 (0.38)1.91 
Adjusted Return on Average Tangible Common Equity16.01 14.00 13.06 13.09 2.86 
Loan interest income1
$62,390 $65,684 $60,573 $64,929 $63,524 
Accretion on acquired loans(2,868)(4,448)(3,254)(2,988)(4,287)
Interest and fees on PPP loans(6,886)(5,187)(1,719)(5,068)— 
Loan interest income excluding PPP and accretion on acquired loans$52,636 $56,049 $55,600 $56,873 $59,237 
Yield on loans1
4.39 4.42 4.11 4.56 4.90 
Impact of accretion on acquired loans(0.20)(0.30)(0.22)(0.21)(0.33)
Impact of PPP loans(0.04)0.11 0.33 (0.04)— 
Yield on loans excluding PPP and accretion on acquired loans4.15 %4.23 %4.22 %4.31 %4.57 %
Net Interest Income1
$66,741 $68,903 $63,621 $67,388 $63,291 
Accretion on acquired loans(2,868)(4,448)(3,254)(2,988)(4,287)
Interest and fees on PPP loans(6,886)(5,187)(1,719)(5,068)— 
Net interest income excluding PPP and accretion on acquired loans$56,987 $59,268 $58,648 $59,332 $59,004 
Net Interest Margin3.51 3.59 3.40 3.70 3.93 
Impact of accretion on acquired loans(0.15)(0.23)(0.17)(0.16)(0.27)
Impact of PPP loans(0.11)0.01 0.19 (0.08)— 
Net interest margin excluding PPP and accretion on acquired loans3.25 %3.37 %3.42 %3.46 %3.66 %
Security interest income1
$6,485 $6,586 $7,129 $7,725 $8,848 
Tax equivalent adjustment on securities(39)(23)(32)(31)(30)
Security interest income excluding tax equivalent adjustment$6,446 $6,563 $7,097 $7,694 $8,818 
Loan interest income1
$62,390 $65,684 $60,573 $64,929 $63,524 
Tax equivalent adjustment on loans(92)(89)(86)(85)(84)
Loan interest income excluding tax equivalent adjustment$62,298 $65,595 $60,487 $64,844 $63,440 
Net Interest Income1
$66,741 $68,903 $63,621 $67,388 $63,291 
Tax equivalent adjustment on securities(39)(23)(32)(31)(30)
Tax equivalent adjustment on loans(92)(89)(86)(85)(84)
Net interest income excluding tax equivalent adjustment$66,610 $68,791 $63,503 $67,272 $63,177 
1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.