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SEACOAST BANKING CORP OF FLORIDA

SEACOAST BANKING CORP OF FLORIDASBCFEarnings & Financial Report

Nasdaq · Financials · State Commercial Banks

Seacoast Banking Corporation of Florida is a Florida-headquartered US financial holding company. It provides full consumer and commercial banking services including deposits, personal and business loans, wealth management and insurance, serving individuals, SMEs and local commercial entities mainly across Florida's regional markets.

What changed in SEACOAST BANKING CORP OF FLORIDA's 10-K — 2023 vs 2024

Top changes in SEACOAST BANKING CORP OF FLORIDA's 2024 10-K

377 paragraphs added · 379 removed · 294 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

65 edited+10 added−16 removed93 unchanged
As a 10 general matter, the FRB has indicated that the board of directors of a bank holding company should consult with the FRB and eliminate, defer or significantly reduce the bank holding company’s dividends if: • its net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends; • its prospective rate of earnings retention is not consistent with its capital needs and overall current and prospective financial condition; or • it will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios.
As a general matter, the FRB has indicated that the Board of Directors of a bank holding company should consult with the FRB and eliminate, defer or significantly reduce the bank holding company’s dividends if: • its net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends; • its prospective rate of earnings retention is not consistent with its capital needs and overall current and prospective financial condition; or • it will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios.
The terms of any such supervisory action could have a material negative effect on our business, reputation, operating flexibility, financial condition, and the value of our common stock. Activity Limitations: As a financial holding company, Seacoast is permitted to engage directly or indirectly in a broader range of activities than those permitted for a bank holding company.
The terms of any such supervisory action could have a material negative effect on our business, reputation, operating flexibility, financial condition, and the value of our common stock. 7 Activity Limitations: As a financial holding company, Seacoast is permitted to engage directly or indirectly in a broader range of activities than those permitted for a bank holding company.
Associate Health and Well-Being We strive to offer competitive compensation and employee benefits including, among others, paid vacation time, medical, dental and vision insurance benefits, 401(k) plan with company match, and an employee stock purchase plan. Seacoast also provides access to a variety of resources to address personal and financial health and wellness.
Associate Health and Well-Being We strive to offer competitive compensation and employee benefits including, among others, paid vacation time, medical, dental and vision insurance benefits, a 401(k) plan with company match, and an employee stock purchase plan. Seacoast also provides associates with access to a variety of resources to address personal and financial health and wellness.
Seacoast Bank is subject to FDIC assessments for its deposit insurance. The FDIC calculates quarterly deposit 11 insurance assessments based on an institution’s average total consolidated assets less its average tangible equity, and applies one of four risk categories determined by reference to its capital levels, supervisory ratings, and certain other factors.
Seacoast Bank is subject to FDIC assessments for its deposit insurance. The FDIC calculates quarterly deposit insurance assessments based on an institution’s average total consolidated assets less its average tangible equity, and applies one of four risk categories determined by reference to its capital levels, supervisory ratings, and certain other factors.
Further, the Foreign Corrupt Practices Act makes it unlawful to make payments to foreign government officials to assist in obtaining or 14 retaining business. The Company and Seacoast Bank have implemented a Code of Business Ethics that governs the behavior of its officers and employees to ensure compliance with such laws.
Further, the Foreign Corrupt Practices Act makes it unlawful to make payments to foreign government officials to assist in obtaining or retaining business. The Company and Seacoast Bank have implemented a Code of Business Ethics that governs the behavior of its officers and employees to ensure compliance with such laws.
The federal banking agencies also require banks to notify their regulators within 36 hours of a “computer-security incident” that rises to the level of a “notification incident.” 13 Consumer Regulation: Activities of Seacoast Bank are subject to a variety of statutes and regulations designed to protect consumers.
The federal banking agencies also require banks to notify their regulators within 36 hours of a “computer-security incident” that rises to the level of a “notification incident.” Consumer Regulation: Activities of Seacoast Bank are subject to a variety of statutes and regulations designed to protect consumers.
The Department of Justice (the “DOJ”), and the federal bank regulatory agencies have issued an Interagency Policy Statement on Discrimination in Lending that provides guidance to financial institutions in determining whether discrimination exists, how the agencies will respond to lending discrimination, and what steps lenders might take to prevent discriminatory lending practices.
The Department of Justice and the federal bank regulatory agencies have issued an Interagency Policy Statement on Discrimination in Lending that provides guidance to financial institutions in determining whether discrimination exists, how the agencies will respond to lending discrimination, and what steps lenders might take to prevent discriminatory lending practices.
Our associates are not represented by a collective bargaining agreement and we believe our relationship with our associates is strong. Professional Development and Employee Engagement Seacoast offers comprehensive training and development programs to provide professional growth opportunities and career paths, and offers tuition reimbursement to promote continued professional education.
Our associates are not represented by a collective bargaining agreement, and we believe our relationship with our associates is strong. Professional Development and Employee Engagement Seacoast offers comprehensive training and development programs to provide professional growth opportunities and career paths for our associates, and offers tuition reimbursement to promote continued professional education.
The capital rules also define the risk-weights assigned to assets and off-balance sheet items to determine the risk-weighted asset components of the risk-based capital rules, including, for example, “high volatility” commercial real estate, past due assets, structured securities and equity holdings.
The capital rules also define the risk-weights assigned to assets and off-balance sheet items to determine the risk-weighted asset components of the 9 risk-based capital rules, including, for example, “high volatility” commercial real estate, past due assets, structured securities and equity holdings.
The Company and Seacoast Bank must each remain “well-capitalized” and “well-managed” and Seacoast Bank must receive a Community Reinvestment Act (“CRA”) rating of at least “Satisfactory” at its most recent examination in order for the Company to maintain its status as a financial holding company.
The Company and Seacoast Bank must each remain “well-capitalized” and “well-managed” and Seacoast Bank must receive a Community Reinvestment Act rating of at least “Satisfactory” at its most recent examination in order for the Company to maintain its status as a financial holding company.
Loans and other extensions of credit from Seacoast Bank to the Company or any affiliate generally are required to be secured by eligible collateral in specified amounts. In addition, any transaction between Seacoast Bank and the Company or any affiliate are required to be on an arm’s length basis.
Loans and other extensions of credit from Seacoast Bank to the Company or any affiliate generally are required to be 11 secured by eligible collateral in specified amounts. In addition, any transaction between Seacoast Bank and the Company or any affiliate are required to be on an arm’s length basis.
In March 2020, reserve requirement ratios were reduced to zero percent. These reserve requirements are subject to annual adjustment by the FRB. FDIC Insurance Assessments and Depositor Preference: Seacoast Bank’s deposits are insured by the FDIC’s DIF up to the limits under applicable law, which currently are set at $250,000 per depositor, per insured bank, for each account ownership category.
Reserve requirement ratios were reduced to zero percent in March 2020, and are subject to annual adjustment by the FRB. FDIC Insurance Assessments and Depositor Preference: Seacoast Bank’s deposits are insured by the FDIC’s DIF up to the limits under applicable law, which currently are set at $250,000 per depositor, per insured bank, for each account ownership category.
Seacoast Insurance Services, Inc. and Nature Coast Insurance, Inc., each a wholly-owned subsidiary of Seacoast, facilitate access for the Company to provide customers with a range of insurance products. The Company also operates seven trusts, formed for the purpose of issuing trust preferred securities, as described in Note 9 – “Borrowings” in Item 8 of this Form 10-K.
Seacoast Insurance Services, Inc. and Nature Coast Insurance, Inc., each a wholly-owned subsidiary of Seacoast, facilitate access for the Company to provide customers with a range of insurance products. The Company also operates seven trusts, formed for the purpose of issuing trust preferred securities, as described in "Note 9 - Borrowings” in Item 8 of this Form 10-K.
Federal banking laws also place similar restrictions on certain extensions of credit by insured banks, such as Seacoast Bank, to their directors, executive officers and principal shareholders. Reserves: FRB rules require depository institutions, such as Seacoast Bank, to maintain reserves against their transaction accounts, primarily interest bearing and non-interest bearing checking accounts.
Federal banking laws also place similar restrictions on certain extensions of credit by insured banks, such as Seacoast Bank, to their directors, executive officers and principal shareholders. Reserves: FRB rules require depository institutions, such as Seacoast Bank, to maintain reserves against their transaction accounts, primarily interest-bearing and noninterest-bearing checking accounts.
Failure to comply with these internal control rules may materially adversely affect the Company's reputation, its ability to obtain the necessary certifications to financial statements, and the value of the Company's securities. The assessments of the Company's financial reporting controls as of December 31, 2023 are included in this report under “Item 9A.
Failure to comply with these internal control rules may materially adversely affect the Company's reputation, its ability to obtain the necessary certifications to financial statements, and the value of the Company's securities. The assessments of the Company's financial reporting controls as of December 31, 2024 are included in this report under “Item 9A.
In 2023, the Company’s and Seacoast Bank’s regulatory capital ratios were above the well-capitalized standards and met the capital conservation buffer as of December 31, 2023. Based on current estimates, we believe that the Company and Seacoast Bank will continue to exceed all applicable well-capitalized regulatory capital requirements and the capital conservation buffer in 2024.
In 2024, the Company’s and Seacoast Bank’s regulatory capital ratios were above the well-capitalized standards and met the capital conservation buffer as of December 31, 2024. Based on current estimates, we believe that the Company and Seacoast Bank will continue to exceed all applicable well-capitalized regulatory capital requirements and the capital conservation buffer in 2025.
Comprehensive Employee Assistance Plan ("EAP") resources are accessible to all associates, addressing a wide range of topics from substance abuse to 6 child and elder care resources. Associates are encouraged to balance their physical fitness with their work life, with a Company reimbursement for a portion of fitness center memberships.
Comprehensive Employee Assistance Plan resources are accessible to all associates, addressing a wide range of topics from substance abuse to child and elder care resources. Associates are encouraged to balance their physical fitness with their work life, with a Company reimbursement for a portion of fitness center memberships.
Federal CRA regulations require, among other things, that evidence of discrimination against applicants on a prohibited basis, and illegal or abusive lending practices be considered in the CRA evaluation. Seacoast Bank has a rating of “Outstanding” in its most recent CRA evaluation.
Federal CRA regulations require, among other things, that evidence of discrimination against applicants on a prohibited basis, and illegal or abusive lending practices be considered in the CRA evaluation. Seacoast Bank has a rating of "Outstanding" in its most recent CRA evaluation.
If the FRB were to apply the same or a similar well-capitalized standard to bank holding companies as that applicable to Seacoast Bank, the Company’s capital ratios as of December 31, 2023 would exceed such revised well-capitalized standard.
If the FRB were to apply the same or a similar well-capitalized standard to bank holding companies as that applicable to Seacoast Bank, the Company’s capital ratios as of December 31, 2024 would exceed such revised well-capitalized standard.
Item 1. Business General Information Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”) is a financial holding company, incorporated in Florida in 1983, and registered under the Bank Holding Company Act of 1956, as amended (the “BHC Act”). Its principal subsidiary is Seacoast National Bank, a wholly-owned national banking association (“Seacoast Bank”), which commenced its operations in 1933.
Item 1. Business Overview Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”) is a financial holding company, incorporated in Florida in 1983, and registered under the Bank Holding Company Act of 1956, as amended (the “BHC Act”). Its principal subsidiary is Seacoast National Bank, a wholly-owned national banking association (“Seacoast Bank”), which commenced its operations in 1933.
Violations of laws and regulations, or other unsafe and unsound practices, may result in regulatory agencies imposing fines or penalties, cease and desist orders, or taking other enforcement actions. Under certain circumstances, these agencies may enforce these remedies directly against officers, directors, employees and other parties participating in the affairs of a bank or bank holding company.
Violations of laws and regulations, or other unsafe and unsound practices, may lead to regulatory agencies imposing fines or penalties, cease and desist orders, or taking other enforcement actions. Under certain circumstances, these agencies may enforce these remedies directly against officers, directors, employees and other parties participating in the affairs of a bank or bank holding company.
Governance and Financial Reporting Obligations: Seacoast is required to comply with various corporate governance and financial reporting requirements under the Sarbanes-Oxley Act of 2002, as well as rules and regulations adopted by the Securities and Exchange Commission (the “SEC”), the Public Company Accounting Oversight Board (the “PCAOB”), and the NASDAQ Global Select Market (“NASDAQ”) stock exchange.
Governance and Financial Reporting Obligations: Seacoast is required to comply with various corporate governance and financial reporting requirements under the Sarbanes-Oxley Act of 2002, as well as rules and regulations adopted by the Securities and Exchange Commission, the Public Company Accounting Oversight Board, and the NASDAQ Global Select Market stock exchange.
As further described below, each of the Company and Seacoast Bank is well-capitalized as of December 31, 2023, and Seacoast Bank achieved a rating of “Outstanding” in its most recent CRA evaluation.
As further described below, each of the Company and Seacoast Bank is well-capitalized as of December 31, 2024, and Seacoast Bank achieved a rating of “Outstanding” in its most recent CRA evaluation.
In addition, the proposed rule would allow for an update to the debit card interchange fee cap every other year based on an analysis of certain costs incurred by debit card issuers. If the rule is adopted as currently proposed, it would result in a further reduction to our debit card interchange fees.
In addition, the proposed rule would allow for an update to the debit card interchange fee cap every other year based on an analysis of certain costs incurred by debit card issuers. If the rule is adopted as currently proposed, it would result in a further reduction to Seacoast Bank's debit card interchange fees.
Concentrations in Lending: In 2006, the federal bank regulatory agencies released guidance on “Concentrations in Commercial Real Estate Lending” (the “Guidance”) and advised financial institutions of the risks posed by commercial real estate (“CRE”) lending concentrations. The Guidance requires that appropriate processes be in place to identify, monitor and control risks 12 associated with real estate lending concentrations.
Concentrations in Lending: In 2006, the federal bank regulatory agencies released guidance on “Concentrations in Commercial Real Estate Lending” (the “Guidance”) and advised financial institutions of the risks posed by CRE lending concentrations. The Guidance requires that appropriate processes be in place to identify, monitor and control risks associated with real estate lending concentrations.
Continued consolidation, rapid technological changes, and regulatory developments within the financial services industry will likely change the nature and intensity of competition, but should also create opportunities for the Company to demonstrate and leverage its competitive advantages.
Continued consolidation, rapid technological changes, and regulatory developments within the financial services industry will likely change the nature and intensity of Seacoast's competition in the financial services sector, but should also create opportunities for the Company to demonstrate and leverage its competitive advantages.
Controls and Procedures.” Corporate Governance: The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) addressed many investor protection, corporate governance, and executive compensation matters that affect most U.S. publicly traded companies.
Controls and Procedures.” 8 Corporate Governance: The Dodd-Frank Wall Street Reform and Consumer Protection Act addressed many investor protection, corporate governance, and executive compensation matters that affect most U.S. publicly traded companies.
To offset these potential competitive disadvantages, the Company depends on its reputation for superior service, ability to make credit and other business decisions quickly, and the delivery of an integrated distribution of traditional branches and bankers, with digital technology. Human Capital As of December 31, 2023, the Company and its subsidiaries employed 1,541 full time-equivalent employees.
To offset these potential competitive disadvantages, the Company depends on its reputation for superior service, ability to make credit and other business decisions quickly, and the delivery of an integrated distribution of traditional branches and bankers, with digital technology. 6 Human Capital As of December 31, 2024, the Company and its subsidiaries employed 1,504 full time-equivalent employees.
The Company provides integrated financial services including commercial and retail banking, wealth management, mortgage and insurance services to customers through advanced online and mobile banking solutions, and through Seacoast Bank's network of 77 traditional branches. The Company’s legal structure includes wholly-owned subsidiaries through which the Company manages investments and foreclosed properties.
The Company provides integrated financial services including commercial and consumer banking, wealth management, mortgage and insurance services to customers through advanced mobile and online banking solutions, and through Seacoast Bank's network of 77 full-service branches. The Company’s legal structure includes wholly-owned subsidiaries through which the Company manages investments and foreclosed properties.
The Company and Seacoast Bank are subject to the following risk-based capital ratios: a common equity Tier 1 (“CET1”) risk-based capital ratio, a Tier 1 risk-based capital ratio, which includes CET1 and additional Tier 1 capital, and a total risk-based capital ratio, which includes Tier 1 and Tier 2 capital.
The Company and Seacoast Bank are subject to the following risk-based capital ratios: a CET1 risk-based capital ratio, a Tier 1 risk-based capital ratio, which includes CET1 and additional Tier 1 capital, and a total risk-based capital ratio, which includes Tier 1 and Tier 2 capital.
Through one of these subsidiaries, Seacoast Bank has a controlling interest in a real estate investment trust (“REIT”). Unrelated investors own a non-controlling interest in the preferred stock of the REIT. Seacoast Bank provides brokerage and annuity services through an affiliation with a third party broker/dealer, LPL Financial.
Through one of these subsidiaries, Seacoast Bank has a controlling interest in a REIT. Unrelated investors own a non-controlling interest in the preferred stock of the REIT. Seacoast Bank provides brokerage and annuity services through an affiliation with a third party broker/dealer, LPL Financial.
Supervision and regulation of banks, their holding companies and affiliates is intended primarily for the protection of depositors and customers, the Deposit Insurance Fund (“DIF”) of the Federal Deposit Insurance Corporation (“FDIC”), and the U.S. banking and financial system rather than protection for the holders of the Company's capital stock.
Supervision and regulation of banks, their holding companies and affiliates is intended primarily for the protection of depositors and customers, the Deposit Insurance Fund of the FDIC, and the U.S. banking and financial system rather than protection for the holders of the Company's capital stock.
As of January 1, 2023, Seacoast Bank, meets the definition of a “large institution” and is subject to direct supervision by the Consumer Financial Protection Bureau (“CFPB”) for compliance with a wide range of consumer compliance laws, and for assessment of the effectiveness of the Bank's compliance management system.
Seacoast Bank meets the definition of a “large institution” and is subject to direct supervision by the Consumer Financial Protection Bureau for compliance with a wide range of consumer compliance laws, and for assessment of the effectiveness of the Bank's compliance management system.
Seacoast has grown to be one of the largest regional banks headquartered in Florida, with an expanding presence in the state's fastest growing markets, each of which has unique characteristics and opportunities. This growth has been achieved through a balanced strategy consisting of organic growth and opportunistic acquisitions.
Seacoast Bank is one of the largest banks headquartered in Florida, with an expanding presence in the state's fastest growing markets, each of which has unique characteristics and opportunities. This growth has been achieved through a balanced strategy consisting of organic growth and opportunistic acquisitions.
Regulation of the Company: The Company is registered as a bank holding company with the FRB under the Bank Holding Company Act of 1956, as amended (the “BHC Act”) and has elected to be a financial holding company. As such, the Company is subject to comprehensive supervision and regulation by the Federal Reserve and to its regulatory reporting requirements.
Regulation of the Company: The Company is registered as a bank holding company with the Federal Reserve Bank under the BHC Act and has elected to be a financial holding company. As such, the Company is subject to comprehensive supervision and regulation by the Federal Reserve and to its regulatory reporting requirements.
Financial institutions are further required to disclose their privacy policies to customers annually. Financial institutions, however, will be required to comply with state law if it is more protective of consumer privacy than the GLBA. The GLBA also directs federal regulators, including the FDIC and the OCC, to prescribe standards for the security of consumer information.
Financial institutions, however, will be required to comply with state law if it is more protective of consumer privacy than the GLBA. The GLBA also directs federal regulators, including the FDIC and the OCC, to prescribe standards for the security of consumer information.
At December 31, 2023, Seacoast Bank's construction and land development loans represented approximately 45% of total risk-based capital at December 31, 2023, well below the Guidance’s threshold. At December 31, 2023, the total commercial real estate exposure for Seacoast Bank represented approximately 244% of total risk based capital, also below the Guidance’s threshold.
At December 31, 2024, Seacoast Bank's construction and land development loans represented approximately 38% of total risk-based capital, well below the Guidance’s threshold. At December 31, 2024, the total commercial real estate exposure for Seacoast Bank represented approximately 237% of total risk- based capital, also below the Guidance’s threshold.
The “Durbin Amendment” in the Dodd-Frank Act provides limits on the amount of debit card interchange that may be received or charged by the debit card issuer, for insured depository institutions with $10 billion or more in assets (inclusive of affiliates) as of the end of the previous calendar year.
The “Durbin Amendment” in the Dodd-Frank Act limits the amount of debit card interchange fees that may be received or charged by the debit card issuer, and is applicable to insured depository institutions with $10 billion or more in assets (inclusive of affiliates) as of the end of the previous calendar year.
Community Reinvestment Act: Seacoast Bank is subject to the provisions of the Community Reinvestment Act (“CRA”), which imposes a continuing and affirmative obligation, consistent with safe and sound operation, to help meet the credit needs of entire communities where the bank accepts deposits, including low- and moderate-income neighborhoods.
Community Reinvestment Act: Seacoast Bank is subject to the provisions of the CRA, which imposes a continuing and affirmative obligation, consistent with safe and sound operation, to help meet the credit needs of entire communities where the bank accepts deposits, including low- and moderate-income neighborhoods. The OCC’s assessment of Seacoast Bank’s CRA record is made available to the public.
Also in the past two years, Seacoast entered the Naples and Jacksonville markets. 5 Seacoast operates in a highly competitive environment, and Seacoast Bank's competition includes not only other banks, but also various other non-bank financial institutions, including savings and loan associations, credit unions, mortgage companies, personal and commercial financial companies, peer-to-peer lending businesses, financial technology companies ("fintechs"), investment brokerage and financial advisory firms and mutual fund companies.
Market and Competition Seacoast operates in a highly competitive environment, and Seacoast Bank's competition includes not only other banks, but also various other non-bank financial institutions, including savings and loan associations, credit unions, mortgage companies, personal and commercial financial companies, peer-to-peer lending businesses, financial technology companies, investment brokerage and financial advisory firms and mutual fund companies.
The Company has traditionally relied upon dividends from Seacoast Bank and securities offerings to provide funds to pay the Company’s expenses and to service the Company’s debt. During the year ended December 31, 2023, Seacoast Bank distributed $40.7 million to the Company. During the year ended December 31, 2022, Seacoast Bank distributed $48.4 million to the Company.
The Company has historically relied upon dividends from Seacoast Bank and securities offerings to provide funds to pay the Company’s expenses and to service the Company’s debt. During the year ended December 31, 2024, Seacoast Bank distributed $59.6 million to the Company. During the year ended December 31, 2023, Seacoast Bank distributed $40.7 million to the Company.
Under this restriction Seacoast Bank is eligible to distribute dividends up to $205.7 million to the Company, without prior OCC approval, as of December 31, 2023.
Under this restriction Seacoast Bank is eligible to distribute dividends up to $188.9 million to the Company, without prior OCC approval, as of December 31, 2024.
Economic Sanctions: The Office of Foreign Assets Control (“OFAC”) is responsible for helping to ensure that U.S. entities do not engage in transactions with certain prohibited parties, as defined by various Executive Orders and acts of Congress.
As of December 31, 2024, no such regulations have been proposed. 12 Economic Sanctions: The Office of Foreign Assets Control is responsible for helping to ensure that U.S. entities do not engage in transactions with certain prohibited parties, as defined by various Executive Orders and acts of Congress.
The OCC’s assessment of Seacoast Bank’s CRA record is made available to the public. Following the enactment of the Gramm-Leach-Bliley Act (“GLBA”), CRA agreements with private parties must be disclosed and annual CRA reports must be made to a bank’s primary federal regulator.
Following the enactment of the Gramm-Leach-Bliley Act, CRA agreements with private parties must be disclosed and annual CRA reports must be made to a bank’s primary federal regulator.
The FRB has not yet revised the well-capitalized standard for bank holding companies to reflect the higher capital requirements imposed under the current capital rules.
Seacoast Bank is subject to minimum ratios to be considered well-capitalized. The FRB has not yet revised the well-capitalized standard for bank holding companies to reflect the higher capital requirements imposed under the current capital rules.
Seacoast Bank is not subject to the assessment as it did not have more than $5 billion in uninsured deposits.
As Seacoast Bank did not have more than $5 billion in uninsured deposits at the measurement date, it was not subject to the special assessment.
FinCEN is required to implement regulations to specify how covered financial institutions, such as the Company, should incorporate these national priorities into their AML programs. As of December 31, 2023, no such regulations have been proposed.
FinCEN is required to implement regulations to specify how covered financial institutions, such as the Company, should incorporate these national priorities into their AML programs.
Among other things, the revised rules evaluate lending outside traditional assessment areas generated by the growth of non-branch delivery systems, such as online and mobile banking, apply a metrics-based benchmarking approach to assessment, and clarify eligible CRA activities.
Among other things, the revised rules evaluate lending outside traditional assessment areas generated by the growth of non-branch delivery systems, such as online and mobile banking, apply a metrics-based benchmarking approach to assessment, and clarify eligible CRA activities. The final rules were challenged in federal court and a preliminary injunction was granted in March 2024 enjoining implementation of the rules.
The Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”), among other things, requires the federal bank regulatory agencies to take “prompt corrective action” regarding depository institutions that do not meet minimum capital requirements. FDICIA establishes five regulatory capital tiers: “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized,” and “critically undercapitalized”.
The Federal Deposit Insurance Corporation Improvement Act of 1991, among other things, requires the federal bank regulatory agencies to take “prompt corrective action” regarding depository institutions that do not meet minimum capital requirements.
The federal banking agencies issued proposed rules in 2011 and issued guidance on sound incentive compensation policies. In 2016, the federal banking agencies also proposed rules that would, depending upon the assets of the institution, directly regulate incentive compensation arrangements and would require enhanced oversight and recordkeeping. As of December 31, 2023, these rules have not been implemented.
The federal banking agencies issued proposed rules in 2011 and issued guidance on sound incentive compensation policies. In 2016, the federal banking agencies also proposed rules that would, depending upon the assets of the institution, directly regulate incentive compensation arrangements and would require enhanced oversight and recordkeeping. In May 2024, these proposed rules were reintroduced, with public comment requested.
Non-Discrimination Policies: Seacoast Bank is also subject to, among other things, the provisions of the Equal Credit Opportunity Act (the “ECOA”) and the Fair Housing Act (the “FHA”), both of which prohibit discrimination based on race or color, religion, national origin, sex, and familial status in any aspect of a consumer or commercial credit or residential real estate transaction.
These rules also address initial rate adjustment notices for adjustable-rate mortgages, periodic statements for residential mortgage loans, and prompt crediting of mortgage payments and response to requests for payoff amounts. 14 Non-Discrimination Policies: Seacoast Bank is also subject to, among other things, the provisions of the Equal Credit Opportunity Act and the Fair Housing Act, both of which prohibit discrimination based on race or color, religion, national origin, sex, and familial status in any aspect of a consumer or commercial credit or residential real estate transaction.
The Company and Seacoast Bank have undertaken efforts to ensure that their incentive compensation plans do not encourage inappropriate risks and that policies are in place to provide for recovery (i.e., "clawback") of erroneously awarded incentive compensation, consistent with three key principles: that incentive compensation arrangements should appropriately balance risk and financial rewards, be compatible with effective controls and risk management, and be supported by strong corporate governance. 8 Shareholder Say-On-Pay Votes: The Dodd-Frank Act requires public companies to provide shareholders with an advisory vote on executive compensation (known as say-on-pay votes), the frequency of a say-on-pay vote, and the golden parachutes available to executives in connection with change-in-control transactions.
The Company and Seacoast Bank have undertaken efforts to ensure that their incentive compensation plans do not encourage inappropriate risks and that policies are in place to provide for recovery (i.e., "clawback") of erroneously awarded incentive compensation, consistent with three key principles: that incentive compensation arrangements should appropriately balance risk and financial rewards, be compatible with effective controls and risk management, and be supported by strong corporate governance.
FDICIA generally prohibits a depository institution from making any capital 9 distribution (including payment of a dividend) or paying any management fee to its holding company if the depository institution would thereafter be undercapitalized.
FDICIA imposes progressively more restrictive restraints on operations, management and capital distributions, depending on the category in which an institution is classified. FDICIA generally prohibits a depository institution from making any capital distribution (including payment of a dividend) or paying any management fee to its holding company if the depository institution would thereafter be undercapitalized.
As of December 31, 2023, Seacoast had total consolidated assets of $14.6 billion, total deposits of $11.8 billion, total consolidated liabilities, including deposits, of $12.5 billion and consolidated shareholders’ equity of $2.1 billion.
As of December 31, 2024, Seacoast had total consolidated assets of $15.2 billion, total deposits of $12.2 billion, total consolidated liabilities, including deposits, of $13.0 billion and consolidated shareholders’ equity of $2.2 billion.
As regulator of Seacoast Bank, the Office of the Comptroller of the Currency (the “OCC”) may require reports from the Company to assess its ability to serve as a source of strength and the FRB may enforce compliance with the source of strength requirements and require the Company to provide financial assistance to Seacoast Bank in the event of financial distress. 7 Acquisitions: The BHC Act permits acquisitions of banks by bank holding companies, such that Seacoast and any other bank holding company, whether located in Florida or elsewhere, may acquire a bank located in any other state, subject to certain deposit-percentages, age of bank charter requirements, and other restrictions.
Acquisitions: The BHC Act permits acquisitions of banks by bank holding companies, such that Seacoast and any other bank holding company, whether located in Florida or elsewhere, may acquire a bank located in any other state, subject to certain deposit-percentages, age of bank charter requirements, and other restrictions.
Federal law also prohibits any national bank from paying dividends that would be greater than such bank’s undivided profits after deducting statutory bad debts in excess of such bank’s allowance for possible loan losses.
Federal law also prohibits any national bank from paying dividends that would be greater than such bank’s undivided profits after deducting statutory bad debts in excess of such bank’s allowance for possible loan losses. 10 In addition, the Company and Seacoast Bank are subject to various general regulatory policies and requirements relating to the payment of dividends, including requirements to maintain adequate capital above regulatory minimums.
The OCC and the FRB have indicated that paying dividends that deplete a bank’s capital base to an inadequate level would be an unsound and unsafe banking practice. The OCC and the FRB have each indicated that depository institutions and their holding companies should generally pay dividends only out of current operating earnings.
The OCC and the FRB have each indicated that depository institutions and their holding companies should generally pay dividends only out of current operating earnings.
As of December 31, 2023, the consolidated capital ratios of Seacoast and Seacoast Bank were as follows: Seacoast (Consolidated) Seacoast Bank Minimum to be Well-Capitalized 1 Total Risk-Based Capital Ratio 15.92% 14.82% 10.00% Tier 1 Capital Ratio 14.54 13.64 8.00 Common Equity Tier 1 Capital Ratio (CET1) 13.87 13.64 6.50 Leverage Ratio 11.00 10.32 5.00 1 For subsidiary bank only.
As of December 31, 2024, the consolidated capital ratios of Seacoast and Seacoast Bank were as follows: Seacoast (Consolidated) Seacoast Bank Minimum to be Well-Capitalized 1 Total Risk-Based Capital Ratio 16.18 % 15.30 % 10.00 % Tier 1 Capital Ratio 14.81 14.13 8.00 CET1 Capital Ratio 14.15 14.13 6.50 Leverage Ratio 11.19 10.66 5.00 1 For subsidiary bank only Payment of Dividends: The Company is a legal entity separate and distinct from Seacoast Bank and its other subsidiaries.
Payment of Dividends: The Company is a legal entity separate and distinct from Seacoast Bank and its other subsidiaries. The Company's primary source of cash is dividends from Seacoast Bank.
The Company's primary source of cash is dividends from Seacoast Bank.
In addition, the Company and Seacoast Bank are subject to various general regulatory policies and requirements relating to the payment of dividends, including requirements to maintain adequate capital above regulatory minimums. The appropriate federal bank regulatory authority may prohibit the payment of dividends where it has determined that the payment of dividends would be an unsafe or unsound practice.
The appropriate federal bank regulatory authority may prohibit the payment of dividends where it has determined that the payment of dividends would be an unsafe or unsound practice. The OCC and the FRB have indicated that paying dividends that deplete a bank’s capital base to an inadequate level would be an unsound and unsafe banking practice.
The final rules are likely to make it more challenging and/or costly for the Bank to receive a rating of at least “satisfactory” on its CRA exam. Privacy and Data Security: The GLBA generally prohibits disclosure of consumer information to non-affiliated third parties unless the consumer has been given the opportunity to object and has not objected to such disclosure.
Privacy and Data Security: The GLBA generally prohibits disclosure of consumer information to non-affiliated third parties unless the consumer has been given the opportunity to object and has not objected to such disclosure. Financial institutions are further required to disclose their privacy policies to customers annually.
A depository institution’s capital tier will depend upon how its capital levels compare to various relevant capital measures and certain other factors, as established by regulation. FDICIA imposes progressively more restrictive restraints on operations, management and capital distributions, depending on the category in which an institution is classified.
FDICIA establishes five regulatory capital tiers: “well-capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized,” and “critically undercapitalized.” A depository institution’s capital tier will depend upon how its capital levels compare to various relevant capital measures and certain other factors, as established by regulation.
The results of the survey and the process of continuous improvement are discussed with the Board at least annually. In 2023, 97% of associates participated in the annual engagement survey, with the overall associate engagement score increasing two percentage points to 85%, which is 9% higher than the Banking industry and 8% higher than the Finance industry benchmarks.
In 2024, 95% of associates participated in the annual engagement survey, with an overall associate engagement score of 84%, which is 13 percentage points higher than similarly-sized companies, nine percentage points higher than the Banking industry and eight percentage points higher than the Finance industry benchmarks.
The assessment rate schedule can change from time to time, at the discretion of the FDIC, subject to certain limits.
The assessment rate schedule can change from time to time, at the discretion of the FDIC, subject to certain limits. The Federal Deposit Insurance Act requires the FDIC to adopt a restoration plan when the DIF reserve ratio falls below the statutory minimum of 1.35% or is expected to within six months.
The assessment base for the special assessment is equal to estimated uninsured deposits reported as of December 31, 2022, adjusted to exclude the first $5 billion, to be collected at an annual rate of approximately 13.4 basis points for an anticipated total of eight quarterly assessment periods, beginning the first quarterly assessment period of 2024.
In response to the bank failures in early 2023, the FDIC implemented a special assessment to recover the losses to the DIF. The base for the special assessment was equal to an insured depository institution’s estimated uninsured deposits reported as of December 31, 2022, adjusted to exclude the first $5 billion.
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Market and Competition Seacoast has continued expanding the franchise and strengthening its competitive position throughout Florida with acquisitions and new market launches, adding to its footprint in the state’s fastest growing markets. In January 2023, Seacoast completed the acquisition of Professional Holding Corp.
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The results of the survey and the process of continuous improvement are discussed with the Board at least annually.
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(“Professional”), which further expanded Seacoast’s presence in the tri-county South Florida market, which includes Miami-Dade, Broward, and Palm Beach counties, Florida’s largest metropolitan statistical area ("MSA") and the 8th largest MSA in the nation. In 2022, Seacoast completed the acquisitions of Sabal Palm Bancorp, Inc. ("Sabal Palm"), creating a presence in the desirable Sarasota market, Business Bank of Florida Corp.
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As regulator of Seacoast Bank, the OCC may require reports from the Company to assess its ability to serve as a source of strength and the FRB may enforce compliance with the source of strength requirements and require the Company to provide financial assistance to Seacoast Bank in the event of financial distress.
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("BBFC"), supporting continued growth in Brevard County, Drummond Banking Company ("Drummond") expanding the footprint into North Florida, including Ocala and Gainesville, and Apollo Bancshares, Inc. ("Apollo"), adding presence in Miami-Dade county.
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As of December 31, 2024, these rules have not been implemented.
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Diversity and Inclusion We strive to create an atmosphere where all associates feel welcome and confident bringing their whole self to work. Inclusion, respect, and fairness live at the core of our Company culture, and we believe the diversity of our associate base and of the communities we serve makes us stronger.
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Shareholder Say-On-Pay Votes: The Dodd-Frank Act requires public companies to provide shareholders with an advisory vote on executive compensation (known as say-on-pay votes), the frequency of a say-on-pay vote, and the golden parachutes available to executives in connection with change-in-control transactions.
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We believe each associate has a unique perspective that is valuable to our Company, our customers, and our communities.
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Such a plan was adopted by the FDIC in 2020 to restore the DIF to at least 1.35% by September 30, 2028.
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As part of the many things we do to support our associates and their families, we have established five Associate Resource Groups (“ARGs”): LGBT+, Military Outreach, Women Mean Business, Black Associates and Allies Network (“BAAN”), and Latin American and Hispanic Associates, called Unidos.
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In 2022, based on projections indicating that achievement of the statutory minimum reserve ratio within the required timeframe was at risk, the FDIC amended the restoration plan and increased initial base deposit insurance assessment rates by two basis points, beginning in the first quarter of 2023.
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The Company places a high value on inclusion, engaging employees in our ARG programs, which are each sponsored by a senior executive leader and are comprised of associates with diverse backgrounds, experiences or characteristics who share a common interest in professional development, improving corporate culture and delivering sustained business results.
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The effective dates will be extended for each day the injunction remains in place, pending the resolution of the lawsuit. 13 If the final rules are reinstated, they are likely to make it more challenging and/or costly for the Bank to receive a rating of at least "Satisfactory" on its CRA exam.
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For the past several years, Seacoast Bank has been named among the "Best Banks to Work For" by American Banker and has repeatedly been recognized as a best place to work for LGBTQ equality. In addition, during 2023, Seacoast was recognized among Fortune's Best Workplaces for Women and has been certified by Great Place to Work for 2023.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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If charge-offs in future periods exceed the allowance for credit losses on loans, we will need additional provisions to increase the allowance, 16 which would result in a decrease in net income and capital, and could have a material adverse effect on our financial condition and results of operations.
If charge-offs in future periods exceed the allowance for credit losses on loans, we will need additional provisions to increase the 16 allowance, which would result in a decrease in net income and capital, and could have a material adverse effect on our financial condition and results of operations.
A significant reduction in our net interest income could have a material adverse impact on our capital, financial condition and results of operations. The Company cannot predict the nature of timing of future changes in monetary, economic, or other policies, or the effect that changes will have on the Company’s business activities, financial condition and results of operations.
A significant reduction in our net interest income could have a material adverse impact on our capital, financial condition and results of operations. The Company cannot predict the nature or timing of future changes in monetary, economic, or other policies, or the effect that changes will have on the Company’s business activities, financial condition and results of operations.
Failure to achieve and maintain an effective internal control environment could prevent us from accurately reporting our financial results, preventing or detecting fraud or providing timely and reliable financial information pursuant to our reporting obligations, which could result in a material weakness in our internal controls over financial reporting and the restatement of previously filed financial statements and could have a material adverse effect on our business, financial condition and results of 21 operations.
Failure to achieve and maintain an effective internal control environment could prevent us from accurately reporting our financial results, preventing or detecting fraud or providing timely and reliable financial information pursuant to our reporting obligations, which could result in a material weakness in our internal controls over financial reporting and the restatement of 21 previously filed financial statements and could have a material adverse effect on our business, financial condition and results of operations.
If, as a result of an examination, the FRB, the OCC and/or the CFPB were to determine that the financial condition, capital resources, asset quality, asset concentrations, earnings prospects, management, liquidity, sensitivity to market risk, or other aspects of any of our or Seacoast Bank’s operations had become unsatisfactory, or that we or our management were in violation of any law, regulation or guideline in effect from time to time, the regulators may take a number of different remedial actions as they deem appropriate.
If, as a result of an examination, the FRB, the OCC and/or the CFPB were to determine that the financial condition, capital resources, asset quality, asset concentrations, earnings prospects, management, liquidity, sensitivity to market risk, or other aspects of any of our or Seacoast Bank’s operations had become 24 unsatisfactory, or that we or our management were in violation of any law, regulation or guideline in effect from time to time, the regulators may take a number of different remedial actions as they deem appropriate.
Such divestitures involve various risks, including the risks of not being able to timely or fully replace liquidity previously provided by deposits which may be transferred as part of a divestiture, which could adversely affect our financial condition and results of operations. 26 General Risk Factors Shares of our common stock are not insured deposits and may lose value.
Such divestitures involve various risks, including the risks of not being able to timely or fully replace liquidity previously provided by deposits which may be transferred as part of a divestiture, which could adversely affect our financial condition and results of operations. General Risk Factors Shares of our common stock are not insured deposits and may lose value.
When customers move money out of bank deposits in favor of alternative investments, we may lose a relatively inexpensive source of funds, and be forced to rely more heavily on borrowings and other 19 sources of funding to fund our business and meet withdrawal demands, thereby increasing our funding costs and adversely affecting our net interest margin.
When customers move money out of bank deposits in favor of alternative investments, we may lose a relatively inexpensive source of funds, and be forced to rely more heavily on borrowings and other sources of funding to fund our business and meet withdrawal demands, thereby increasing our funding costs and adversely affecting our net interest margin.
We might not be successful in developing or introducing new products and services, integrating new products or services into our existing offerings, responding or adapting to changes in consumer behavior, preferences, spending, investing and/or saving habits, achieving market acceptance of our products and services, reducing costs in response to pressures to deliver products and services at lower prices or sufficiently developing and maintaining loyal customers.
We might not be successful in developing or introducing new products and services, integrating new products or services into our existing offerings, responding or adapting to changes in consumer behavior, preferences, spending, investing and/or saving habits, achieving market acceptance of our products and services, reducing costs 19 in response to pressures to deliver products and services at lower prices or sufficiently developing and maintaining loyal customers.
Our costs of funds and our profitability and liquidity are likely to be adversely affected if, and to the extent, we have to rely upon higher cost 17 borrowings from other institutional lenders or brokers to fund loan demand or liquidity needs, and changes in our deposit mix, pricing, and growth could adversely affect our profitability and the ability to expand our loan portfolio.
Our costs of funds and our profitability and liquidity are likely to be adversely affected if, and to the extent, we have to rely upon higher cost borrowings from other institutional lenders or brokers to fund loan demand or liquidity needs, and changes in our deposit mix, pricing, and growth could adversely affect our profitability and the ability to expand our loan portfolio.
Among other things, our regulators consider our capital, liquidity, profitability, regulatory compliance, including with respect to anti-money laundering (“AML”) obligations, consumer protection laws and CRA obligations and levels of goodwill and intangibles when considering acquisition and expansion proposals. Any acquisition could be dilutive to our earnings and shareholders’ equity per share of our common stock.
Among other things, our regulators consider our capital, liquidity, profitability, regulatory compliance, including with respect to anti-money laundering obligations, consumer protection laws and CRA obligations and levels of goodwill and intangibles when considering acquisition and expansion proposals. Any acquisition could be dilutive to our earnings and shareholders’ equity per share of our common stock.
These rules could have a negative effect on the financial performance of Seacoast Bank's mortgage lending operations such as limiting the volume of 23 mortgage originations and sales into the secondary market, increased compliance burden and impairing Seacoast Bank's ability to proceed against certain delinquent borrowers with timely and effective collection efforts.
These rules could have a negative effect on the financial performance of Seacoast Bank's mortgage lending operations such as limiting the volume of mortgage originations and sales into the secondary market, increased compliance burden and impairing Seacoast Bank's ability to proceed against certain delinquent borrowers with timely and effective collection efforts.
These changes, if adopted, could require us to maintain more capital, liquidity and risk controls, which could adversely affect our growth, profitability and financial condition. Any such changes in law can impact the profitability of our business activities, require changes to our operating policies and procedures, or otherwise adversely impact our business.
These changes, if adopted, 23 could require us to maintain more capital, liquidity and risk controls, which could adversely affect our growth, profitability and financial condition. Any such changes in law can impact the profitability of our business activities, require changes to our operating policies and procedures, or otherwise adversely impact our business.
Our ability to receive dividends from our subsidiaries could affect our liquidity and ability to pay interest on our trust preferred securities or reinstate dividends. 18 We are a legal entity separate and distinct from Seacoast Bank and our other subsidiaries. Our primary source of cash, other than securities offerings, is dividends from Seacoast Bank.
Our ability to receive dividends from our subsidiaries could affect our liquidity and ability to pay interest on our trust preferred securities or reinstate dividends. We are a legal entity separate and distinct from Seacoast Bank and our other subsidiaries. Our primary source of cash, other than securities offerings, is dividends from Seacoast Bank.
In addition, to the extent we expand our lending beyond our current market areas, we could incur additional risks related to those new market areas. We may not be able to expand our market presence in our existing market areas or successfully enter new markets.
In addition, to the extent we expand our lending beyond our current market areas, we could incur additional 26 risks related to those new market areas. We may not be able to expand our market presence in our existing market areas or successfully enter new markets.
We offer our clients the ability to bank remotely and provide other technology based products and services, which services include the secure transmission of confidential information over the Internet and other remote channels.
We offer our clients the ability to bank remotely and provide other technology based products and services, which services include the secure 22 transmission of confidential information over the Internet and other remote channels.
To the extent that our clients' systems are 22 not secure or are otherwise compromised, our network could be vulnerable to unauthorized access, malicious software, phishing schemes and other security breaches.
To the extent that our clients' systems are not secure or are otherwise compromised, our network could be vulnerable to unauthorized access, malicious software, phishing schemes and other security breaches.
This Form 10-K also contains forward-looking statements that may not be realized as a result of certain factors, including, but not limited to, the risks described herein and in our other public filings with the SEC. Please refer to the section in this Form 10-K entitled “Special Cautionary Notice Regarding Forward-Looking Statements” for additional information regarding forward-looking statements.
This Form 10-K also contains forward-looking statements that may not be realized as a result of certain factors, including, but not limited to, the risks described herein and in our other public filings with the SEC. Please refer to the section in this Form 10-K titled “Special Cautionary Notice Regarding Forward-Looking Statements” for additional information regarding forward-looking statements.
Declines in home prices coupled with high or increased unemployment levels or increased interest rates can cause losses which adversely affect our earnings and financial condition, including our capital and liquidity. We are subject to lending concentration risk. Our loan portfolio contains several industry and collateral concentrations including, but not limited to, commercial and residential real estate.
Declines in home prices coupled with high or increased unemployment levels or increased interest rates could cause losses which adversely affect our earnings and financial condition, including our capital and liquidity. We are subject to lending concentration risk. Our loan portfolio contains several industry and collateral concentrations including, but not limited to, commercial and residential real estate.
In addition, the resolution of nonperforming assets requires significant commitments of time from management and our personnel, which can be detrimental to the performance of their other responsibilities. There can be no assurance that we will not experience increases in nonperforming loans in the future, or that nonperforming assets will not result in losses in the future.
In addition, the resolution of NPAs requires significant commitments of time from management and our personnel, which can be detrimental to the performance of their other responsibilities. There can be no assurance that we will not experience increases in nonperforming loans in the future, or that NPAs will not result in losses in the future.
Our funding sources include customer deposits, federal funds purchases, securities sold under repurchase agreements, and short- and long-term debt. We are also members of the Federal Home Loan Bank of Atlanta (the “FHLB”) and the Federal Reserve Bank of Atlanta, where we can obtain advances collateralized with eligible assets.
Our funding sources include customer deposits, federal funds 17 purchases, securities sold under repurchase agreements, and short- and long-term debt. We are also members of the Federal Home Loan Bank of Atlanta and the Federal Reserve Bank of Atlanta, where we can obtain advances collateralized with eligible assets.
Generally, the credit quality of our borrowers can deteriorate as a result of economic downturns in our markets. For example, inflation could lead to increased costs to our customers, making it more difficult for them to repay their loans or other obligations, increasing our credit risk.
Generally, the credit quality of our borrowers may deteriorate as a result of economic downturns in our markets. For example, inflation could lead to increased costs to our customers, making it more difficult for them to repay their loans or other obligations, increasing our credit risk.
Declines in home prices and the volume of home sales in Florida, along with the reduced availability of certain types of mortgage credit, can result in increases in delinquencies and losses in our portfolios of home equity lines and loans, and commercial loans related to residential real estate acquisition, construction and development.
Declines in home prices and the volume of home sales in Florida, along with the reduced availability of certain types of mortgage credit, could result in increases in delinquencies and losses in our portfolios of home equity lines and loans, and commercial loans related to residential real estate acquisition, construction and development.
If our borrowers’ ability to pay their loans is impaired by increasing interest payment obligations, our level of nonperforming assets would increase, producing an adverse effect on operating results. Increases in interest rates can have a material impact on the volume of mortgage originations and re-financings, adversely affecting the profitability of our mortgage finance business.
If our borrowers’ ability to pay their loans is impaired by increasing interest payment obligations, our level of NPAs would increase, producing an adverse effect on operating results. Increases in interest rates can have a material impact on the volume of mortgage originations and re-financings, adversely affecting the profitability of our mortgage finance business.
The U.S. government’s decisions regarding its debt ceiling and the possibility that the U.S. could default on its debt obligations may cause further interest rate increases, disrupt access to capital markets and deepen recessionary conditions. The effects of any economic downturn could continue for many years after the downturn is considered to have ended.
The U.S. government’s decisions regarding its debt ceiling and the possibility that the U.S. could default on its debt obligations may cause further interest rate increases, disrupt access to capital markets and deepen recessionary conditions. The effects of a possible economic downturn could continue for many years after the downturn is considered to have ended.
Florida has historically experienced deeper recessions and more dramatic slowdowns in economic activity than other states and a decline in real estate values in Florida can be significantly larger than the national average.
Florida has historically experienced deeper recessions and more dramatic slowdowns in economic activity than other states and a decline in real estate values in Florida may be significantly larger than the national average.
Regulatory compliance burdens and associated costs can affect our business, including our reputation, the value of our securities, and the results of our operations. We and our subsidiaries are regulated by several regulators, including, but not limited to, the FRB, the OCC, the FDIC, the CFPB, the Small Business Administration, the SEC and NASDAQ.
Regulatory compliance burdens and associated costs can affect our business, including our reputation, the value of our securities, and the results of our operations. We and our subsidiaries are regulated by several regulators, including, but not limited to, the FRB, the OCC, the FDIC, the CFPB, the SBA, the SEC and NASDAQ.
We review our allowance for credit losses on loans for adequacy, at a minimum quarterly, considering economic conditions and trends, reasonable and supportable forecasts, collateral values and credit quality indicators, including past charge-off experience and levels of past due loans and nonperforming assets.
We review our allowance for credit losses on loans for adequacy, at a minimum quarterly, considering economic conditions and trends, reasonable and supportable forecasts, collateral values and credit quality indicators, including past charge-off experience and levels of past due loans and NPAs.
Changes in accounting rules applicable to banks could adversely affect our financial condition and results of operations. From time to time, the Financial Accounting Standards Board (the “FASB”) and the SEC change the financial accounting and reporting standards that govern the preparation of our financial statements.
Changes in accounting rules applicable to banks could adversely affect our financial condition and results of operations. From time to time, the FASB and the SEC change the financial accounting and reporting standards that govern the preparation of our financial statements.
Any increase in our nonperforming assets and related increases in our provision for losses on loans could negatively affect our business and could have a material adverse effect on our capital, financial condition and results of operations.
Any increase in our NPAs and related increases in our provision for losses on loans could negatively affect our business and could have a material adverse effect on our capital, financial condition and results of operations.
However, in the future, our FDIC deposit insurance premiums and assessments may increase as a result of future increases in assessment rates, required prepayments in FDIC insurance premiums or other changes, and could reduce our profitability.
FDIC deposit insurance premiums and assessments may increase as a result of future increases in assessment rates, required prepayments in FDIC insurance premiums, special assessments or other changes, and could reduce our profitability.
Declining real estate prices cause higher delinquencies and losses on certain mortgage loans, generally, and particularly on second lien mortgages and home equity lines of credit. Significant ongoing disruptions in the secondary market for residential mortgage loans can limit the market for and liquidity of most residential mortgage loans other than conforming Fannie Mae and Freddie Mac loans.
Declining real estate prices cause higher delinquencies and losses on certain mortgage loans, generally, and particularly on second lien mortgages and HELOCs. Significant ongoing disruptions in the secondary market for residential mortgage loans can limit the market for and liquidity of most residential mortgage loans other than conforming Fannie Mae and Freddie Mac loans.
Commercial real estate (“CRE”) is cyclical and poses risks of loss to us due to our concentration levels and risk of the asset, especially during a difficult economy, including the current stressed economy. As of December 31, 2023, 50% of our loan portfolio was comprised of loans secured by commercial real estate.
Commercial real estate is cyclical and poses risks of loss to us due to our concentration levels and risk of the asset, especially during a difficult economy, including the current stressed economy. As of December 31, 2024, 52% of our loan portfolio was comprised of loans secured by commercial real estate.
While lower income tax rates should result in improved net income performance over prospective periods, the extent of the benefit will be influenced by the competitive environment and other factors. As of December 31, 2023, we had net deferred tax assets ("DTAs") of $113.2 million, based on management's estimation of the likelihood of those DTAs being realized.
While lower income tax rates should result in improved net income performance over prospective periods, the extent of the benefit will be influenced by the competitive environment and other factors. As of December 31, 2024, we had net deferred tax assets of $103.0 million, based on management's estimation of the likelihood of those DTAs being realized.
Competition for qualified candidates in the activities and markets that we serve is intense. If we are not able to hire, adequately compensate, or retain these key individuals, we may be unable to execute our business strategies and may suffer adverse consequences to our business, financial condition and results of operations. Item 1B. Unresolved Staff Comments None.
Competition for qualified candidates in the activities and markets that we serve is intense. If we are not able to hire, adequately compensate, or retain these key individuals, we may be unable to execute our business strategies and may suffer adverse consequences to our business, financial condition and results of operations.
Any future economic downturn could have a material adverse effect on our capital, financial condition, results of operations, and future growth. Management continually monitors market conditions and economic factors throughout our footprint.
Any future economic downturn could have a material adverse effect on our capital, financial condition, results of operations, and future growth. Management continually monitors market conditions and economic factors affecting our business.
While we seek continued organic growth, we anticipate continuing to evaluate merger and acquisition opportunities presented to us in our core markets and beyond. The number of financial institutions headquartered in Florida, the Southeastern United States, and across the country continues to decline through merger and other activity.
Attractive acquisition opportunities may not be available to us in the future. While we seek continued organic growth, we anticipate continuing to evaluate merger and acquisition opportunities presented to us in our core markets and beyond. The number of financial institutions headquartered in Florida, the Southeastern United States, and across the country continues to decline through merger and other activity.
Acquiring other banks, branches or businesses, as well as other geographic and product expansion activities, involve various risks including: • risk of unknown, undisclosed or contingent liabilities that could arise after the closing of an acquisition and for which there is no indemnification obligation or other price protection mechanism associated with the acquisition; • unanticipated costs and delays, including as a result of enhanced regulatory scrutiny; • risks that acquired new businesses do not perform consistent with our growth and profitability expectations; • risks of entering new market or product areas where we have limited experience; • risks that growth will strain our infrastructure, staff, internal controls and management, which may require additional personnel, time and expenditures; • exposure to potential asset quality issues with acquired institutions; • difficulties, expenses and delays of integrating the operations and personnel of acquired institutions, and start-up delays and costs of other expansion activities; • potential disruptions to our business; • possible loss of key employees and customers of acquired institutions; • potential short-term decrease in profitability; • inaccurate estimates of value assigned to acquired assets; • litigation; and • diversion of our management’s time and attention from our existing operations and businesses. 25 Attractive acquisition opportunities may not be available to us in the future.
Acquiring other banks, branches or businesses, as well as other geographic and product expansion activities, involve various risks including: • risk of unknown, undisclosed or contingent liabilities that could arise after the closing of an acquisition and for which there is no indemnification obligation or other price protection mechanism associated with the acquisition; • unanticipated costs and delays, including as a result of enhanced regulatory scrutiny; • risks that acquired new businesses do not perform consistent with our growth and profitability expectations; • risks of entering new market or product areas where we have limited experience; • risks that growth will strain our infrastructure, staff, internal controls and management, which may require additional personnel, time and expenditures; • exposure to potential asset quality issues with acquired institutions; • difficulties, expenses and delays of integrating the operations and personnel of acquired institutions, and start-up delays and costs of other expansion activities; • inaccurate estimates of value assigned to acquired assets; • potential disruptions to our business; • possible loss of key employees and customers of acquired institutions; 25 • potential short-term decrease in profitability; • potential dilution of our current shareholders or a decline in our share price resulting from the issuance in connection with an acquisition of equity securities or securities convertible into equity securities, any of which may be senior to our common stock as to distributions and in liquidation; • litigation; and • diversion of our management’s time and attention from our existing operations and businesses.
Compliance with the Dodd-Frank Act's requirements may necessitate that we hire or contract with additional compliance or other personnel, design and implement additional internal controls, or incur other significant expenses, any of which could have a material adverse effect on our business, financial condition or results of operations.
As of December 31, 2024, this rule has been challenged in court. Compliance with the Dodd-Frank Act's requirements may necessitate that we hire or contract with additional compliance or other personnel, design and implement additional internal controls, or incur other significant expenses, any of which could have a material adverse effect on our business, financial condition or results of operations.
The FRB has implemented significant economic strategies that have impacted interest rates, inflation, asset values, and the shape of the yield curve, over which the Company has no control and which the Company may not be able to adequately anticipate.
The FRB has implemented significant economic strategies that have impacted interest rates, inflation, asset values, and the shape of the yield curve, over which the Company has no control and which the Company may not be able to adequately anticipate. Changes in interest rates and monetary policy have a significant impact on our activities and results of operations.
Generally, we believe local deposits are a cheaper and more stable source of funds than other borrowings because interest rates paid for local deposits are typically lower than interest rates charged for borrowings from other institutional lenders and reflect a mix of transaction and time deposits, whereas brokered deposits typically are higher cost time deposits.
Generally, we believe local deposits are a cheaper and more stable source of funds than other borrowings because interest rates paid for local deposits are typically lower than interest rates charged for borrowings from other institutional lenders or brokers.
Additionally, in January 2024, the CFPB issued a notice of proposed rulemaking that would treat discretionary overdraft services offered by banks with more than $10 billion in assets as credit, bringing them for the first time under Regulation Z, the implementing regulation of the Truth in Lending Act.
Additionally, in December 2024, the CFPB finalized a rule that would treat discretionary overdraft services offered by banks with more than $10 billion in assets as credit, bringing them for the first time under Regulation Z, the implementing regulation of the Truth in Lending Act and capping these fees at $5.
We compete for loans, deposits and other financial services in geographic markets with other local, regional and national commercial banks, thrifts, credit unions, mortgage lenders, and securities and insurance brokerage firms.
Our future growth and success will depend on our ability to compete effectively in these and other potential markets. We compete for loans, deposits and other financial services in geographic markets with other local, regional and national commercial banks, thrifts, credit unions, mortgage lenders, and securities and insurance brokerage firms.
To the extent we grow through acquisition, we cannot assure you that we will be able to manage this growth adequately or profitably.
We intend to continue to regularly evaluate potential acquisitions and expansion opportunities. To the extent we grow through acquisition, we cannot assure you that we will be able to manage this growth adequately or profitably.
In some cases, we may elect to contribute to the cost of responding to cybercrime against our customers, even when we are not at fault, in order to maintain valuable customer relationships.
In some cases, we may elect to contribute to the cost of responding to cybercrime against our customers, even when we are not at fault, in order to maintain valuable customer relationships. The development and use of artificial intelligence (“AI”) presents risks and challenges that may adversely impact our business.
Additionally, if our subsidiaries’ earnings are not sufficient to make dividend payments to us while maintaining adequate capital levels, we may not be able to make payments on our trust preferred securities or reinstate dividend payments to our common shareholders. Business and Strategic Risks Our future success is dependent on our ability to compete effectively in highly competitive markets.
Additionally, if our 18 subsidiaries’ earnings are not sufficient to make dividend payments to us while maintaining adequate capital levels, we may not be able to make payments on our trust preferred securities or reinstate dividend payments to our common shareholders.
Seacoast Bank has a commercial real estate concentration risk management program and monitors its exposure to CRE; however, there can be no assurance that the program will be effective in managing our concentration in CRE.
Seacoast Bank has a commercial real estate concentration risk management program and monitors its exposure to CRE; however, there can be no assurance that the program will be effective in managing our concentration in CRE. NPAs could result in an increase in our provision for credit losses on loans, which could adversely affect our results of operations and financial condition.
We are subject to fraud risk in connection with the origination of loans, ACH transactions, wire transactions, digital payments, ATM transactions, checking and other transactions.
A fraud can be perpetrated by a customer of Seacoast, an employee, a vendor, or members of the general public. We are subject to fraud risk in connection with the origination of loans, ACH transactions, wire transactions, digital payments, ATM transactions, checking and other transactions.
In addition, we had approximately $30.5 million in accruing loans that were 30 days or more delinquent at December 31, 2023. Our nonperforming assets adversely affect our net income in various ways. We generally do not record interest income on nonaccrual loans, thereby adversely affecting our income, and increasing our loan administration costs.
Our NPAs adversely affect our net income in various ways. We generally do not record interest income on nonaccrual loans, thereby adversely affecting our income, and increasing our loan administration costs.
These and future DTAs may be reduced in the future if our estimates of future taxable income from our operations and tax planning strategies do not support the amounts recorded. Merger-Related Risks Future acquisition and expansion activities may disrupt our business, dilute existing shareholders and adversely affect our operating results. We periodically evaluate potential acquisitions and expansion opportunities.
These and future DTAs may be reduced in the future if our estimates of future taxable income from our operations and tax planning strategies do not support the amounts recorded. Merger-Related Risks If we fail to successfully integrate our acquisitions or to realize the anticipated benefits of them, our financial condition and results of operations could be negatively affected.
Banking regulators are taking action in an effort to strengthen public confidence in the banking system, but there can be no assurance that these actions will stabilize the financial services industry and financial markets.
Banking regulators have historically taken action to strengthen public confidence in the banking system, including to ensure that depositors had access to their deposits, including uninsured deposit accounts, but there can be no assurance that such actions will stabilize the financial services industry and financial markets in response to future adverse events impacting the financial services industry.
We operate in markets throughout the State of Florida, each with unique characteristics and opportunities. Our future growth and success will depend on our ability to compete effectively in these and other potential markets.
Also, if our growth occurs more slowly than anticipated or declines, our operating results could be materially adversely affected. Our future success is dependent on our ability to compete effectively in highly competitive markets. We operate in markets throughout the State of Florida, each with unique characteristics and opportunities.
A failure to meet our lending goals could adversely affect our results of operations, and financial condition, liquidity and capital. Deterioration in the real estate markets, including the secondary market for residential mortgage loans, can adversely affect us.
Credit Risk Deterioration in the real estate markets, including the secondary market for residential mortgage loans, can adversely affect us.
Fraudulent activity can take many forms and has escalated as more tools for accessing financial services emerge, such as real-time payments. Fraud schemes are broad and continuously evolving. A fraud can be perpetrated by a customer of Seacoast, an employee, a vendor, or members of the general public.
Criminals are turning to new sources, including artificial intelligence, to steal personally identifiable information in order to impersonate our clients to commit fraud. Fraudulent activity can take many forms and has escalated as more tools for accessing financial services emerge, such as real-time payments. Fraud schemes are broad and continuously evolving.
Nonperforming assets could result in an increase in our provision for credit losses on loans, which could adversely affect our results of operations and financial condition. At December 31, 2023, our nonaccrual loans totaled $65.1 million or 0.65% of the loan portfolio and our nonperforming assets (which includes nonaccrual loans) were $72.7 million or 0.50% of total assets.
At December 31, 2024, our nonaccrual loans totaled $92.4 million or 0.90% of the loan portfolio and our NPAs (which includes nonaccrual loans) were $98.9 million or 0.65% of total assets. In addition, we had approximately $15.6 million in accruing loans that were 30 days or more delinquent at December 31, 2024.
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Credit Risk Lending goals may not be attainable. Future demand for additional lending is unclear and uncertain, and opportunities to make loans may be more limited and/or involve risks or terms that we likely would not find acceptable or in our shareholders’ best interest.
Added
The actions of the Federal Reserve influence the rates of interest that the Company charges on loans and that the Company pays on borrowings and interest-bearing deposits and can also affect the value of the Company's on-balance sheet and off-balance sheet financial instruments.
Removed
Interest rates increased significantly in 2022 and through the first half of 2023 as the FRB attempted to slow economic growth and counteract rising inflation. Further changes in interest rates and monetary policy reportedly are dependent upon the FRB’s assessment of economic data as it becomes available.
Added
Sustained higher interest rates increase the Company's cost of funding and may result in lower demand for loans by our customers.
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The FRB may maintain higher interest rates to counteract persistent inflationary price pressures, which could push down asset prices and weaken economic activity.
Added
Business and Strategic Risks Our business strategy includes continued growth, and our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth effectively. We intend to continue to pursue a growth strategy for our business.
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A deterioration in economic conditions in the United States and our markets could result in an increase in loan delinquencies and non-performing assets, decreases in loan collateral values and a decrease in demand for our products and services, all of which, in turn, would adversely affect our business, financial condition and results of operations.
Added
Our prospects must be considered in light of the risks, expenses and difficulties frequently encountered by companies in pursuing such growth strategies.
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In our ordinary course of business, we rely on electronic communications and information systems to conduct our businesses and to store sensitive data, including financial information regarding our customers.
Added
Our ability to continue to grow successfully will depend on a variety of factors, including economic conditions, continued availability of desirable business opportunities, customer demand for our products and services, the competitive responses from other financial and non-financial institution competitors, and our ability to successfully serve a growing number of client relationships.
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The integrity of information systems of financial institutions is under significant threat from cyber-attacks by third parties, including through coordinated attacks sponsored by foreign nations and criminal organizations to disrupt business operations and other compromises to data and systems for political or criminal purposes.
Added
There can be no assurance growth opportunities will be available or growth will be successfully managed. Failure to manage our growth effectively could have a material adverse effect on our business, financial condition or results of operations, and could adversely affect our ability to successfully implement our business strategy.
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We employ an in-depth, layered, lines of defense approach that leverages people, processes and technology to manage and maintain cyber security and other information security controls. Regulatory and Litigation Risk We operate in a heavily regulated environment.
Added
We or our third-party (or fourth-party) vendors, clients or counterparties may develop or incorporate AI technology in certain business processes, services, or products. The development and use of AI presents a number of risks and challenges to our business.
Removed
Limits to debit card interchange fees took effect July 1, 2023, and reduced the Company's revenue.
Added
The legal and regulatory environment relating to AI is uncertain and rapidly evolving, both in the U.S. and internationally, and includes regulatory schemes targeted specifically at AI as well as provisions in intellectual property, privacy, consumer protection, employment, and other laws applicable to the use of AI.
Removed
In 2023, the FDIC imposed a special assessment to recover the costs to the DIF 24 resulting from the FDIC’s use, in March 2023, of the systemic risk exception to the least-cost resolution test under the Federal Deposit Insurance Act in connection with the receivership of Silicon Valley Bank and Signature Bank.
Added
These evolving laws and regulations could require changes in our implementation of AI technology and increase our compliance costs and the risk of non-compliance.
Removed
The special assessment applied to insured depository institutions with $5 billion or more in estimated uninsured deposits at December 31, 2022. The Company’s uninsured deposits at December 31, 2022 were $3.5 billion , below the threshold for the special assessment.
Added
AI models, particularly generative AI models, may produce output or take action that is incorrect, that reflects biases included in the data on which they are trained, that results in the release of private, confidential, or proprietary information, that infringes on the intellectual property rights of others, or that is otherwise harmful.
Removed
Additionally, by having more than $10 billion in total assets at December 31, 2022, the method that the FDIC uses to determine the amount of our deposit insurance premium has changed.
Added
In addition, the complexity of many AI models makes it difficult to understand why they are generating particular outputs.
Added
This limited transparency increases the challenges associated with assessing the proper operation of AI models, understanding and monitoring the capabilities of the AI models, reducing erroneous output, eliminating bias, and complying with regulations that require documentation or explanation of the basis on which decisions are made.
Added
Further, we may rely on AI models developed by third parties, and, to that extent, would be dependent in part on the manner in which those third parties develop and train their models, including risks arising from the inclusion of any unauthorized material in the training data for their models and the effectiveness of the steps these third parties have taken to limit the risks associated with the output of their models, matters over which we may have limited visibility.
Added
Any of these risks could expose us to liability or adverse legal or regulatory consequences and harm our reputation and the public perception of our business or the effectiveness of our security measures. Regulatory and Litigation Risk We operate in a heavily regulated environment.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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“Risk Factors” for further discussion of the material risks associated with an interruption or breach in our information systems or infrastructure. Cybersecurity Governance Our Board of Directors is responsible for overseeing the Company’s business and affairs, including risks associated with cybersecurity threats.
“Risk Factors” for further discussion of the material risks associated with an interruption or breach in our information systems or infrastructure. 28 Cybersecurity Governance Our Board of Directors is responsible for overseeing the Company’s business and affairs, including risks associated with cybersecurity threats.
The Board oversees the Company’s corporate risk governance processes primarily through its committees, and oversight of cybersecurity threats is delegated primarily to our Information Technology Committee (“ITC”). The Enterprise Risk Management Committee (“ERMC”) of the Board has primary responsibility for overseeing the Company’s comprehensive Enterprise Risk Management program.
The Board oversees the Company’s corporate risk governance processes primarily through its committees, and oversight of cybersecurity threats is delegated primarily to our Information Technology Committee. The Enterprise Risk Management Committee of the Board has primary responsibility for overseeing the Company’s comprehensive ERM program.
In this role, in addition to the responsibilities discussed above, the CISO manages the Company’s information security and day-to-day cybersecurity operations and supports the information security risk oversight responsibilities of the Board and its committees. The CISO is also responsible for the Company’s information technology governance, risk, and compliance program and ensures that high level risks receive appropriate attention.
In this role, in addition to the responsibilities discussed above, the CISO supports the information security risk oversight responsibilities of the Board and its committees. The CISO is also responsible for the Company’s information technology governance, risk, and compliance program and ensures that high level risks receive appropriate attention.
The Enterprise Risk Management program assists senior management in identifying, assessing, monitoring, and managing risk, including cybersecurity risk, in a rapidly changing environment. Cybersecurity matters and assessments are regularly included in both ITC and ERMC meetings. The Board’s oversight of cybersecurity risk is supported by our CISO.
The ERM program assists senior management in identifying, assessing, monitoring, and managing risk, including cybersecurity risk, in a rapidly changing environment. Cybersecurity matters and assessments are regularly included in both ITC and ERMC meetings. The Board’s oversight of cybersecurity risk is supported by our CISO. The CISO attends ITC and ERMC meetings and provides cybersecurity updates to these Board committees.
Our Chief Information Security Officer (“CISO”) manages our information security strategy and development as overseen by our overarching Enterprise Risk Management (“ERM”) program. The Company’s cybersecurity program, including our information security policies, is designed to align with regulatory guidance and industry practices.
Our Chief Information Security Officer, who reports to our Chief Risk Officer, manages our information security strategy and development within our overarching Enterprise Risk Management program. The Company’s cybersecurity program, including our information security policies, is designed to align with regulatory guidance and industry practices.
The Incident Response Plan outlines action steps for investigating, containing, and remediating a cybersecurity incident, and includes procedures for escalation and reporting of potentially significant cybersecurity incidents to the Company’s Senior Leadership Team, including the Chief Executive Officer (“CEO”), Chief Financial Officer (“CFO”), Chief Risk Officer (“CRO”), Chief Legal Officer (“CLO”) and the Board of Directors.
The Incident Response Plan outlines action steps for investigating, containing, and remediating a cybersecurity incident, and includes procedures for escalation and reporting of potentially significant cybersecurity incidents to the Company’s Senior Leadership Team, including the CEO, CFO, CRO, Head of Legal, and the Board of Directors.
The Information Security team also actively monitors company networks and systems to detect suspicious or malicious events, including through penetration testing and routine vulnerability scans, and a managed security service provider supplements our efforts to provide 24 hours a day, seven days a week coverage.
The Information Security team also actively monitors company networks and systems to detect suspicious or malicious events, including through penetration testing and periodic vulnerability scans, a managed security service provider supplements our efforts to provide 24 hours a day, seven days a week coverage, and we work with leading cybersecurity companies and organizations to leverage third party technology and expertise as appropriate.
Our CRO, in conjunction with our CISO and CIO, facilitates the involvement of the ITC in oversight of potentially significant cybersecurity incidents. 28 The Company’s CISO directs the company’s information security program and our information technology risk management.
The CISO also provides annual risk assessments and reports regarding the information security program to the full Board of Directors. Our CRO, in conjunction with our CISO, facilitates the involvement of the ITC in oversight of potentially significant cybersecurity incidents. The Company’s CISO directs the company’s information security program and our information technology risk management.
To protect our information systems, network, and information assets from cybersecurity threats, we use various security tools, products and processes that help identify, prevent, investigate, and remediate cybersecurity threats and security incidents. 27 The Company’s Information Security team monitors threat intelligence sources to research evolving threats, investigates the potential impact to financial services companies, examines company controls to detect and defend against those threats, and proactively adjusts company defenses against those threats.
The Company’s Information Security team monitors threat intelligence sources to research evolving threats, investigates the potential impact to financial services companies, examines company controls to detect and defend against those threats, and proactively adjusts company defenses against those threats.
Led by our CISO, the Information Security team examines risks to the Company’s information systems and assets, designs and implements security solutions, monitors the environment, and provides responses to threats. In 2023 our CISO reported to our CIO; however, for 2024 the CISO will report to our CRO, who in turn reports to our CEO.
The Information Security team examines risks to the Company’s information systems and assets, designs and implements security solutions, monitors the environment, and provides responses to threats. Our CISO has cybersecurity and information technology experience spanning more than 30 years.
Our CISO has cybersecurity experience spanning more than 20 years. Prior experience includes serving as the CISO at a mid-size regional financial institution and serving in manager roles at large professional services firms. He holds a degree in Computer Science and Mathematics and maintains several industry certifications.
Prior experience includes serving as the CISO for a multi-national cloud hosting organization serving the legal community and several senior leadership roles in both information technology and information security at a large financial institution, Fortune 500 organizations and a large professional services firm. The CISO holds a degree in Computer Science and maintains appropriate industry certifications.
Removed
The CISO and CIO attend ITC and ERMC meetings and provide cybersecurity updates to these Board committees. The CISO also provides annual risk assessments and reports regarding the information security program summary report to the full Board of Directors.
Added
To protect our information systems, network, and information assets from cybersecurity threats, we use various security tools, products and processes that help identify, prevent, investigate, and remediate cybersecurity threats and security incidents.

Item 2. Properties

Properties — owned and leased real estate

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Item 2. Properties Seacoast maintains its corporate headquarters in a 68,000 square foot, three story building at 815 Colorado Avenue in Stuart, Florida. The building is owned by Seacoast Bank. Seacoast Bank owns or leases all of the buildings in which its business operates.
Item 2. Properties Seacoast maintains its corporate headquarters in a 68,000 square foot building at 815 Colorado Avenue in Stuart, Florida. The building is owned by Seacoast Bank. Seacoast Bank owns or leases all of the buildings in which its business operates.
At December 31, 2023, Seacoast Bank had 77 branch offices, in addition to stand-alone commercial lending offices, and its main office, all located in Florida. For additional information regarding properties, please refer to Notes 7 and 11 of the Notes to Consolidated Financial Statements.
At December 31, 2024, Seacoast Bank had 77 branch offices, all located in Florida, in addition to stand-alone commercial lending offices, including one in Georgia. For additional information regarding properties, please refer to Note 7 - Bank Premises and Equipment and Note 11 - Lease Commitments to our audited consolidated financial statements.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Management presently believes that none of the legal proceedings to which it is a party are likely to have a materially adverse effect on the Company’s consolidated financial position, operating results or cash flows. Item 4. Mine Safety Disclosures Not applicable. Part II
Management presently believes that none of the legal proceedings to which it is a party are likely to have a materially adverse effect on the Company’s consolidated financial position, operating results or cash flows. Item 4. Mine Safety Disclosures Not applicable. 29 Part II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Under the share repurchase program, which will expire on December 31, 2024, repurchases will be made, if at all, in accordance with applicable securities laws and may be made from time to time in the open market, by block purchase or by negotiated transactions.
Under the share repurchase program, which will expire on December 31, 2025, repurchases will be made, if at all, in accordance with applicable securities laws and may be made from time to time in the open market, by block purchase or by negotiated transactions.
The need for Seacoast Bank to maintain adequate capital also limits dividends that may be paid to the Company. For additional information regarding restrictions on the ability of Seacoast Bank to pay dividends to the Company see “Item 1. Business- Payment of Dividends” of this Form 10-K.
The need for Seacoast Bank to maintain adequate capital also limits dividends that may be paid to the Company. For additional information regarding restrictions on the ability of Seacoast Bank to pay dividends to the Company see “Item 1. Business- Payment of Dividends ” of this Form 10-K.
Item 5. Market For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Holders of the Company's common stock are entitled to one vote per share on all matters presented to shareholders for their vote, as provided in our Articles of Incorporation, as amended.
Item 5. Market For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Holders of the Company's common stock are entitled to one vote per share on all matters presented to shareholders for their vote, as provided in our Articles of Incorporation, as amended. The Company's common stock is traded under the symbol “SBCF” on the NASDAQ.
These shares were not purchased under the Company's stock repurchase plan to repurchase shares. Item 6. [Reserved]
These shares were not purchased under the Company's stock repurchase plan to repurchase shares.
The following table provides details of our common stock repurchases for the three months ended December 31, 2023: Period Total Number of Shares Purchased 1 Average Price Paid Per Share Total Number of Shares Purchased as part of Public Announced Plan Maximum Value of Shares that May Yet be Purchased Under the Plan (in thousands) 10/1/23 to 10/31/23 13,415 $ 19.84 527,300 $ 89,520 11/1/23 to 11/30/23 — 19.98 18,900 89,143 12/1/23 to 12/31/23 89,539 28.95 — 100,000 Total - 4th Quarter 102,954 $ 21.10 546,200 $ 100,000 1 Includes shares that were repurchased to pay for the exercises of stock options or for income taxes owed on vesting shares of restricted stock.
The following table provides details of our common stock repurchases for the three months ended December 31, 2024: Period Total Number of Shares Purchased 1 Average Price Paid Per Share Total Number of Shares Purchased as part of Public Announced Plan Maximum Value of Shares that May Yet be Purchased Under the Plan (in thousands) 10/1/24 to 10/31/24 8,941 $ 25.89 — $ 99,120 11/1/24 to 11/30/24 — — — 99,120 12/1/24 to 12/31/24 13,764 27.52 — 100,000 Total - 4th Quarter 22,705 $ 26.88 — $ 100,000 1 Includes shares that were repurchased to pay for the exercises of stock options or for income taxes owed on vesting shares of restricted stock.
The Company's common stock is traded under the symbol “SBCF” on the NASDAQ Global Select Market (“NASDAQ”). As of January 31, 2024, there were 84,889,092 shares of the Company's common stock outstanding, held by approximately 2,616 record holders. Dividends from Seacoast Bank are the Company's primary source of funds to pay dividends to its shareholders.
As of January 31, 2025, there were 85,612,136 shares of the Company's common stock outstanding, held by approximately 2,330 record holders. Dividends from Seacoast Bank are the Company's primary source of funds to pay dividends to its shareholders.
Securities Authorized for Issuance Under Equity Compensation Plans See the information included under Part III, Item 12, which is incorporated in response to this item by reference. 29 Share Repurchase Program and Other Repurchases On December 15, 2023, the Company's Board of Directors authorized the renewal of the Company's share repurchase program, under which the Company may, from time to time, purchase up to $100 million of its shares of outstanding common stock.
Share Repurchase Program and Other Repurchases On December 18, 2024, the Company's Board of Directors authorized the renewal of the Company's share repurchase program, under which the Company may, from time to time, purchase up to $100 million of its shares of outstanding common stock.
Removed
In August 2022, the Inflation Reduction Act of 2022 (the “IRA”) was enacted. Among other things, the IRA imposes a new 1% excise tax on the fair market value of stock repurchased after December 31, 2022 by publicly traded U.S. corporations.
Added
Securities Authorized for Issuance Under Equity Compensation Plans See the information included under Part III, Item 12, which is incorporated in response to this item by reference.
Removed
With certain exceptions, the value of stock repurchased is determined net of stock issued in the year, including shares issued pursuant to compensatory arrangements.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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The forecasts of future economic conditions are over a period that has been deemed reasonable and supportable, and in segments where it can no longer develop reasonable and supportable forecasts, the Company reverts to longer-term historical loss experience to estimate losses over the remaining life of the loans.
The forecasts of future economic conditions are over a period that has been deemed reasonable and supportable, and in segments where it can no longer develop reasonable and supportable forecasts, the Company reverts to longer-term historical loss experience to estimate losses over the remaining life of the loans.
As a general matter, the FRB has indicated that the board of directors of a bank holding company, such as Seacoast, should consult with the FRB and eliminate, defer, or significantly reduce the bank holding company’s dividends if: (i) its net income available to shareholders for the past four quarters, net of dividends previously paid during that 50 period, is not sufficient to fully fund the dividends; (ii) its prospective rate of earnings retention is not consistent with its capital needs and overall current and prospective financial condition; or (iii) it will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios.
As a general matter, the FRB has indicated that the Board of Directors of a bank holding company, such as Seacoast, should consult with the FRB and eliminate, defer, or significantly reduce the bank holding company’s dividends if: (i) its net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends; (ii) its prospective rate of earnings retention is not consistent with its capital needs and overall current and prospective financial condition; or (iii) it will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios.
Explanation of Certain Unaudited Non-GAAP Financial Measures This report contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). The financial highlights provide reconciliations between GAAP and adjusted financial measures including net income, fully taxable equivalent net interest income, noninterest income, noninterest expense, tax adjustments, net interest margin and other financial ratios.
Explanation of Certain Unaudited Non-GAAP Financial Measures This report contains financial information determined by methods other than Generally Accepted Accounting Principles. The financial highlights provide reconciliations between GAAP and adjusted financial measures including net income, fully taxable equivalent net interest income, noninterest income, noninterest expense, tax adjustments, net interest margin and other financial ratios.
Loans to real estate investment trusts (“REITs”) and unsecured loans to developers that closely correlate to the inherent risks in commercial real estate markets would also be considered commercial real estate loans under the Guidance. Loans on owner-occupied commercial real estate are generally excluded.
Loans to real estate investment trusts and unsecured loans to developers that closely correlate to the inherent risks in commercial real estate markets would also be considered commercial real estate loans under the Guidance. Loans on owner-occupied commercial real estate are generally excluded.
Changes in the assumptions and forecasts of economic conditions could significantly affect the Company’s estimate of expected credit losses at the balance sheet date or lead to significant changes in the estimate from one reporting period to the next.
Changes in the loss assumptions and forecasts of economic conditions could significantly affect the Company’s estimate of expected credit losses at the balance sheet date or lead to significant changes in the estimate from one reporting period to the next.
An allowance for expected credit losses on PCD loans is recorded at the date of acquisition through an adjustment to the loans’ amortized cost basis. In contrast, expected credit losses on loans not considered PCD are recognized through the provision for credit losses at the date of acquisition.
An 56 allowance for expected credit losses on PCD loans is recorded at the date of acquisition through an adjustment to the loans’ amortized cost basis. In contrast, expected credit losses on loans not considered PCD are recognized through the provision for credit losses at the date of acquisition.
For AFS securities, if any portion of the decline in fair value is related to credit, the amount of allowance is determined as the portion related to credit, limited to the difference between the amortized cost basis and the fair 52 value of the security.
For AFS securities, if any portion of the decline in fair value is related to credit, the amount of allowance is determined as the portion related to credit, limited to the difference between the amortized cost basis and the fair value of the security.
This amount is being amortized into interest expense over the acquired subordinated debts' remaining term to maturity. All trust preferred securities are guaranteed by the Company on a junior subordinated basis. 48 Under Basel III and FRB rules, qualified trust preferred securities and other restricted capital elements can be included as Tier 1 capital, within limitations.
This amount is being amortized into interest expense over the acquired subordinated debts' remaining term to maturity. All trust preferred securities are guaranteed by the Company on a junior subordinated basis. 51 Under Basel III and FRB rules, qualified trust preferred securities and other restricted capital elements can be included as Tier 1 capital, within limitations.
The Company has significant liquidity and available borrowing capacity through other sources if needed, and has the intent and ability to hold these investments to maturity. At December 31, 2023, the Company has determined that all debt securities in an unrealized loss position are the result of both broad investment type spreads and the current interest rate environment.
The Company has significant liquidity and available borrowing capacity through other sources if needed, and has the intent and ability to hold these investments to maturity. At December 31, 2024, the Company has determined that all debt securities in an unrealized loss position are the result of both broad investment type spreads and the current interest rate environment.
Nearly all of the Company’s operations are contained in its banking subsidiary, Seacoast National Bank (“Seacoast Bank” or the “Bank”). Such discussion and analysis should be read in conjunction with the Company's Consolidated Financial Statements and the related notes included in this report. The emphasis of this discussion will be on the years ended December 31, 2023 and 2022.
Nearly all of the Company’s operations are contained in its banking subsidiary, Seacoast National Bank (“Seacoast Bank” or the “Bank”). Such discussion and analysis should be read in conjunction with the Company's Consolidated Financial Statements and the related notes included in this report. The emphasis of this discussion will be on the years ended December 31, 2024 and 2023 .
There was no reserve requirement at December 31, 2023 or December 31, 2022. Under FRB regulation, Seacoast Bank is limited as to the amount it may loan to its affiliates, including the Company, unless such loans are collateralized by specified obligations.
There was no reserve requirement at December 31, 2024 or December 31, 2023. Under FRB regulation, Seacoast Bank is limited as to the amount it may loan to its affiliates, including the Company, unless such loans are collateralized by specified obligations.
For additional information regarding the Company's methodology for calculating the Allowance for Credit Losses, see Note 1 – Significant Accounting Policies and Note 5 – Allowance for Credit Losses in the Notes to the Consolidated Financial Statements. Acquisition Accounting and Purchased Loans – Critical Accounting Policies and Estimates The Company accounts for acquisitions using the acquisition method of accounting.
For additional information regarding the Company's methodology for calculating the Allowance for Credit Losses, see Note 1 – Significant Accounting Policies and Note 5 – Allowance for Credit Losses in the Notes to the Consolidated Financial Statements. Acquisition Accounting and Purchased Loans The Company accounts for acquisitions using the acquisition method of accounting.
Additional information about the Company’s financial condition and results of operations in 2021 and changes in the Company’s financial condition and results of operations from 2021 to 2022 may be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.
Additional information about the Company’s financial condition and results of operations in 2022 and changes in the Company’s financial condition and results of operations from 2022 to 2023 may be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 .
The capital measures are not necessarily comparable to similar capital measures that may be presented by other companies and Seacoast does not nor should investors consider such non-GAAP financial measures in isolation from, or as a substitute for GAAP financial information (see “Table 1 - Capital Resources” and “Note 13 - Regulatory Capital”).
The capital measures are not necessarily comparable to similar capital measures that may be presented by other companies and Seacoast does not nor should investors consider such non-GAAP financial measures in isolation from, or as a substitute for GAAP financial information (see “Note 13 - Regulatory Capital”).
Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments. 51 One of the most significant judgments in estimating the Allowance for credit losses relates to the macroeconomic forecasts. As of December 31, 2023, the Company utilized a blend of Moody’s most recent “U.S.
Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments. One of the most significant judgments in estimating the Allowance for credit losses relates to the macroeconomic forecasts. As of December 31, 2024, the Company utilized a blend of Moody’s most recent “U.S.
Seacoast is executing a balanced growth strategy, combining organic growth with strategic acquisitions in Florida's most attractive growing markets. The Company has expanded its presence across the state with 16 acquisitions since 2014, strengthening market share, increasing the customer base and lowering operating costs through economies of scale. The acquisition of Professional Holding Corp.
Seacoast is executing a balanced growth strategy, combining organic growth with strategic acquisitions in Florida's most attractive growing markets. The Company has expanded its presence across the state with 16 acquisitions since 2014, strengthening market share, increasing the customer base and lowering operating costs through economies of scale.
As of December 31, 2023, all of the Company's collateralized loan obligations were in AAA/AA tranches with weighted average credit support of 33%. The Company utilizes credit models with assumptions of loan level defaults, recoveries, and prepayments to evaluate each security for potential credit losses. The result of this analysis did not indicate expected credit losses.
As of December 31, 2024, all of the Company's collateralized loan obligations were in AAA/AA tranches with weighted-average credit support of 36%. The Company utilizes credit models with assumptions of loan level defaults, recoveries, and prepayments to evaluate each security for potential credit losses. The result of this analysis did not indicate expected credit losses.
Contractual interest is paid on a semiannual basis at a fixed interest rate of 3.375% until January 30, 2027, at which point the rate converts to a 3-month SOFR rate plus 203 basis points paid quarterly.
Contractual interest is paid on a semiannual basis at a fixed interest rate of 3.375% until January 30, 2027, at which point the rate converts to a 3-month SOFR rate plus 203 basis points paid quarterly until maturity in 2032.
The collateral underlying these mortgages are primarily pooled multifamily loans. The Company also has invested $300.9 million in floating rate collateralized loan obligations. Collateralized loan obligations are special purpose vehicles that purchase first lien broadly syndicated corporate loans while providing support to senior tranche investors.
The collateral underlying these mortgages are primarily pooled multifamily loans. The Company also has invested $278.3 million in floating rate collateralized loan obligations. Collateralized loan obligations are special purpose vehicles that purchase first lien broadly syndicated corporate loans while providing support to senior tranche investors.
(“Professional”), parent company of Professional Bank, was completed on January 31, 2023. The transaction further expanded Seacoast’s presence in the tri-county South Florida market, which includes Miami-Dade, Broward, and Palm Beach counties, Florida’s largest MSA and the 8th largest in the nation.
The acquisition of Professional Holding Corp., parent company of Professional Bank, was completed on January 31, 2023. The transaction further expanded Seacoast’s presence in the tri-county South Florida market, which includes Miami-Dade, Broward, and Palm Beach counties, Florida’s largest MSA and the 8th largest in the nation.
The fair value estimates associated with the loans include estimates related to expected prepayments and the amount and timing of expected principal, interest and other cash flows. Loans are identified as purchased credit deteriorated (“PCD”) when they have experienced more-than-insignificant deterioration in credit quality since origination.
The fair value estimates associated with the loans include estimates related to expected prepayments and the amount and timing of expected principal, interest and other cash flows. Loans are identified as PCD when they have experienced more-than-insignificant deterioration in credit quality since origination.
Repurchase agreements are offered by Seacoast to select customers who wish to sweep excess balances on a daily basis for investment purposes. At December 31, 2023 and December 31, 2022, long-term debt included $72.2 million and $71.9 million, respectively, related to trust preferred securities issued by trusts organized or acquired by the Company.
Repurchase agreements are offered by Seacoast to select customers who wish to sweep excess balances on a daily basis for investment purposes. At December 31, 2024 and December 31, 2023, long-term debt included $72.5 million and $72.2 million, respectively, related to trust preferred securities issued by trusts organized or acquired by the Company.
We performed an annual impairment test of goodwill in the fourth quarter of 2023 and concluded that no impairment existed.
We performed an annual impairment test of goodwill in the fourth quarter of 2024 and concluded that no impairment existed.
Unfunded commitments to extend credit were $2.7 billion at December 31, 2023, and $2.8 billion at December 31, 2022 (see “Note 15 - Contingent Liabilities and Commitments with Off-Balance Sheet Risk” to the Company’s consolidated financial statements).
Unfunded commitments to extend credit were $2.9 billion at December 31, 2024, and $2.7 billion at December 31, 2023 (see “Note 15 - Contingent Liabilities and Commitments with Off-Balance Sheet Risk” to the Company’s consolidated financial statements).
Qualitative assessments consider a range of factors including: percent decline in fair value, rating downgrades, subordination, duration, amortized loan-to-value, and the ability of the issuers to pay all amounts due in accordance with the contractual terms.
Qualitative assessments consider a range of factors including: rating downgrades, subordination, amortized loan-to-value, and the ability of the issuers to pay all amounts due in accordance with the contractual terms.
At December 31, 2023, the remaining fair value adjustments on acquired loans were $174.0 million, or 4.8%, of the outstanding acquired loan balances, compared to $97.7 million, or 4.3% of the acquired loan balances at December 31, 2022. The discount is accreted into interest income over the remaining lives of the related loans on a level yield basis.
At December 31, 2024, the remaining fair value adjustments on acquired loans were $128.1 million, or 4.3% of the outstanding acquired loan balances, compared to $174.0 million, or 4.8% of the acquired loan balances at December 31, 2023. The discount is accreted into interest income over the remaining lives of the related loans on a level yield basis.
At December 31, 2023, the Company had cash and cash equivalents at the parent of $101.7 million, compared to $111.8 million at December 31, 2022. The following table presents contractual obligations by remaining maturity.
At December 31, 2024, the Company had cash and cash equivalents at the parent of $95.8 million, compared to $101.7 million at December 31, 2023. The following table presents contractual obligations by remaining maturity.
Fair value is based upon pricing obtained from third party pricing services. Based on internal review procedures and the fair values provided by the pricing services, the Company believes that the fair values provided by the pricing services are consistent with the principles of ASC Topic 820, Fair Value Measurement .
The fair value of AFS securities is based upon pricing obtained from third party pricing services. Based on internal review procedures and the fair values provided by the pricing services, the Company believes that the fair values provided by the pricing services are consistent with the principles of ASC Topic 820, Fair Value Measuremen t.
Concentrations in total construction and land development loans and total commercial real estate loans are maintained well below regulatory limits. Construction and land development and commercial real estate loan concentrations as a percentage of subsidiary bank total risk based capital, were 48% and 244%, respectively, at December 31, 2023, compared to 45% and 230% as of December 31, 2022.
Concentrations in total construction and land development loans and total commercial real estate loans are maintained well below regulatory limits. Construction and land development and commercial real estate loan concentrations as a percentage of subsidiary bank total risk-based capital, were 38% and 237%, respectively, at December 31, 2024, compared to 48% and 244% as of December 31, 2023.
Outstanding balances for commercial and commercial real estate loan relationships greater than $10 million totaled $2.3 billion, representing 23% of the total portfolio at December 31, 2023, compared to $2.2 billion, or 27%, at December 31, 2022.
Outstanding balances for commercial and commercial real estate loan relationships greater than $10 million totaled $2.7 billion, representing 26% of the total portfolio at December 31, 2024, compared to $2.3 billion, or 23%, at December 31, 2023.
At December 31, 2023, the maximum amount available for transfer from Seacoast Bank to the Company in the form of loans approximated $183.8 million, if the Company has sufficient acceptable collateral. There were no loans made to affiliates during the periods ending December 31, 2023 and 2022.
At December 31, 2024, the maximum amount available for transfer from Seacoast Bank to the Company in the form of loans approximated $185.2 million, if the Company has sufficient acceptable collateral. There were no loans made to affiliates during the periods ending December 31, 2024 and 2023.
Contractual interest is paid on a semiannual basis at a fixed rate of 5.50% until April 30, 2025, at which point the rate converts to a floating rate of 3-month SOFR plus 533 basis points.
Contractual interest is paid on a semiannual basis at a fixed rate of 5.50% until October 30, 2025, at which point the rate converts to a floating rate of 3-month SOFR plus 533 basis points until maturity in 2030.
The average LTV of our HELOC portfolio is 63% with 35% of the portfolio being in the first lien position at December 31, 2023, compared to an average LTV of 69% with 31% of the portfolio being in the first lien position at December 31, 2022.
The average LTV of our HELOC portfolio is 64% with 31% of the portfolio being in the first lien position at December 31, 2024, compared to an average LTV of 63% with 35% of the portfolio being in the first lien position at December 31, 2023.
Its principal subsidiary is Seacoast National Bank 30 (“Seacoast Bank”), a wholly owned national banking association. The Company provides integrated financial services including commercial and consumer banking, wealth management, mortgage and insurance services to customers through advanced online and mobile banking solutions, and Seacoast Bank's network of 77 traditional branches and commercial banking centers.
Its principal subsidiary is Seacoast National Bank (“Seacoast Bank”), a wholly owned national banking association. The Company provides integrated financial services including commercial and consumer banking, wealth management, mortgage and insurance services to customers through advanced online and mobile banking solutions, and Seacoast Bank's network of 77 full-service branches across Florida.
Cash flows from operations are a significant component of liquidity risk management and the Company considers both deposit maturities and the scheduled cash flows from loan and investment maturities and payments when managing risk. Cash and cash equivalents, including interest bearing deposits, totaled $447.2 million at December 31, 2023, compared to $201.9 million at December 31, 2022.
Cash flows from operations are a significant component of liquidity risk management and the Company 49 considers both deposit maturities and the scheduled cash flows from loan and investment maturities and payments when managing risk. Cash and cash equivalents, including interest-bearing deposits, totaled $476.6 million at December 31, 2024, compared to $447.2 million at December 31, 2023.
The Company has liquidity sources as discussed below, including cash and lines of credit with the FRB and FHLB, that represent 145% of uninsured deposits, and 176% of uninsured and uncollateralized deposits.
The Company has liquidity sources as discussed below, including cash and lines of credit with the FRB and FHLB, that represent 138% of uninsured deposits, and 167% of uninsured and uncollateralized deposits.
For loan commitments, the contractual amount of a commitment represents the maximum potential credit risk that could result if the entire commitment had been funded, the borrower had not performed according to the terms of the contract, and no collateral had been provided.
Lending commitments include unfunded loan commitments and standby and commercial letters of credit. For loan commitments, the contractual amount of a commitment represents the maximum potential credit risk that could result if the entire commitment had been funded, the borrower had not performed according to the terms of the contract, and no collateral had been provided.
At December 31, 2023, the average interest rate in effect on our outstanding subordinated debt related to trust preferred securities was 7.34%, compared to 6.46% at December 31, 2022. The acquired junior subordinated debentures were recorded at fair value, which collectively was $3.1 million lower than face value at December 31, 2023.
At December 31, 2024, the average interest rate in effect on our outstanding subordinated debt related to trust preferred securities was 6.34%, compared to 7.34% at December 31, 2023. The acquired junior subordinated debentures were recorded at fair value, which collectively was $2.8 million lower than face value at December 31, 2024.
For regulatory purposes, the trust preferred securities are added to the Company’s tangible common shareholders’ equity to calculate Tier 1 capital. Critical Accounting Policies and Estimates The Company’s consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles, (“GAAP”), including prevailing practices within the financial services industry.
For regulatory purposes, the trust preferred securities are added to the Company’s tangible common shareholders’ equity to calculate Tier 1 capital. Critical Accounting Policies and Estimates The Company’s consolidated financial statements are prepared in accordance with GAAP, including prevailing practices within the financial services industry.
Regulatory guidance suggests limits of 100% and 300%, respectively. On a consolidated basis, 44 construction and land development and commercial real estate loans represent 45% and 228%, respectively, of total consolidated risk based capital.
Regulatory guidance suggests limits of 100% and 300%, respectively. On a consolidated basis, construction and land development and commercial real estate loans represent 36% and 224%, respectively, of total consolidated risk-based capital.
At December 31, 2023, available-for-sale securities had gross unrealized losses of $217.7 million and gross unrealized gains of $4.4 million, compared to gross unrealized losses of $248.7 million and gross unrealized gains of $1.1 million at December 31, 2022. The credit quality of the Company’s securities holdings is primarily investment grade. U.S.
At December 31, 2024, available-for-sale securities had gross unrealized losses of $211.3 million and gross unrealized gains of $3.5 million, compared to gross unrealized losses of $217.7 million and gross unrealized gains of $4.4 million at December 31, 2023. The credit quality of the Company’s securities holdings is primarily investment grade. U.S.
During the year ended December 31, 2023, there were $100.9 million of debt securities purchased, $167.1 million acquired through the acquisition of Professional and $287.9 million in paydowns and maturities over the same period. $113.4 million of securities were sold in 2023, with $2.9 million in realized losses.
During the year ended December 31, 2023, there were $100.9 million of debt securities purchased, $167.1 million acquired through the acquisition of Professional and $287.9 million in paydowns and maturities over the same period. $82.9 million of securities were sold in 2023, with $2.9 million in realized losses. Debt securities generally return principal and interest monthly.
The cost of average total deposits (including noninterest bearing demand deposits) increased by 139 basis points to 1.50% in 2023, compared to 0.11% in 2022, primarily the result of higher short term interest rates and an increasingly competitive deposit market.
The cost of average total deposits (including noninterest-bearing demand deposits) increased by 73 basis points to 2.23% in 2024, compared to 1.50% in 2023, primarily the result of higher short-term interest rates and an increasingly competitive deposit market.
Interchange revenue totaled $13.9 million in 2023, a decrease of 19% from $17.2 million in 2022. The decrease in interchange income was due to the impact of the Durbin amendment, which became effective for the first time for the Company on July 1, 2023, limiting network interchange fees earned on debit card transactions.
Interchange revenue totaled $7.6 million in 2024, a decrease of 45% from $13.9 million in 2023. The decrease in interchange income was primarily due to the impact of the Durbin amendment, which became effective for the first time for the Company on July 1, 2023, limiting network interchange fees earned on debit card transactions.
The Company has traditionally relied upon dividends from Seacoast Bank and securities offerings to provide funds to pay the Company’s expenses and to service the Company’s debt. During 2023, Seacoast Bank distributed $40.7 million to the Company and, at December 31, 2023, is eligible to distribute dividends to the Company of approximately $205.7 million without prior regulatory approval.
The Company has traditionally relied upon dividends from Seacoast Bank and securities offerings to provide funds to pay the Company’s expenses and to service the Company’s debt. During 2024, Seacoast Bank distributed $59.6 million to the Company and, at December 31, 2024, is eligible to distribute dividends to the Company of approximately $188.9 million without prior regulatory approval.
Noninterest demand deposits represented 30% of total deposits at December 31, 2023 compared to 41% at December 31, 2022 primarily driven by the higher interest rate environment driving a mix shift to interest bearing products. Transaction account balances (noninterest demand and interest-bearing demand) represented 54% of total deposits at December 31, 2023, compared to 64% at December 31, 2022.
Noninterest demand deposits represented 27% of total deposits at December 31, 2024 compared to 30% at December 31, 2023 primarily driven by the higher interest rate environment driving a mix shift to money market products. Transaction account balances (noninterest demand and interest-bearing demand) represented 49% of total deposits at December 31, 2024, compared to 54% at December 31, 2023.
The weighting applied in the December 31, 2023 analysis reflects a deterioration in the economic outlook as compared to the December 31, 2022 analysis and considers the continued actions taken by the FRB with regard to monetary policy and interest rates and the potential impact of those actions.
The weighting applied in the December 31, 2024 analysis reflects an improvement in the economic outlook as compared to December 31, 2023, and considers the anticipated actions taken by the FRB with regard to monetary policy and interest rates and the potential impact of those actions.
Securities Information related to yields, maturities, carrying values and fair value of the Company’s securities is set forth in Tables 7 and 8 and “Note 3 - Securities” of the Company’s consolidated financial statements. At December 31, 2023, the Company had $1.8 billion in securities available-for-sale, and $680.3 million in securities held-to-maturity.
Securities Information related to yields, maturities, carrying values and fair value of the Company’s securities is set forth in “Note 3 - Securities” of the Company’s consolidated financial statements. At December 31, 2024, the Company had $2.4 billion in securities available-for-sale, and $635.2 million in securities held-to-maturity.
Management establishes the allowance using relevant available information from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Economic forecast data is sourced from Moody’s Analytics (“Moody’s”), a firm widely recognized for its research, analysis, and economic forecasts.
The estimate of the ACL requires significant judgment and is based on a variety of factors. Management establishes the allowance using relevant available information from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Economic forecast data is sourced from Moody’s Analytics, a firm widely recognized for its research, analysis, and economic forecasts.
The debt was recorded at fair value, resulting in a $3.9 million discount that is being accreted into interest expense over the remaining term to maturity. Federal Home Loan Bank advances totaled $50 million at December 31, 2023 with an interest rate of 3.23%, compared to $150.0 million at December 31, 2022 with a weighted average interest rate of 3.42%.
The debt was recorded at fair value, resulting in a $3.9 million discount that is being accreted into interest expense over the remaining term to maturity. FHLB advances totaled $245.0 million at December 31, 2024 with a weighted-average interest rate of 4.19%, compared to $50.0 million at December 31, 2023 with an interest rate of 3.23%.
Net revenues, which are calculated as net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains and losses were $128.2 million, a decrease of $8.9 million, or 7%, from the third quarter of 2023 and a decrease of $9.2 million, or 7%, from the fourth quarter of 2022.
Net revenues, which are calculated as net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains and losses were $132.9 million, an increase of $2.5 million, or 2%, from the third quarter of 2024 and an increase of $4.7 million, or 4%, from the fourth quarter of 2023.
Yields on loans increased 126 basis points from 4.62% in 2022 to 5.88% in 2023, benefiting from higher rates on new production and increasing rates on variable rate loans. Accretion of purchase discounts on acquired loans added 57 basis points to loan yields in 2023, compared to 27 basis points in 2022.
Yields on loans increased five basis points from 5.88% in 2023 to 5.93% in 2024, benefiting from higher rates on new production and increasing rates on variable rate loans. Accretion of purchase discounts on acquired loans added 42 basis points to loan yields in 2024, compared to 57 basis points in 2023.
In addition to $447.2 million in cash and cash equivalents at December 31, 2023, the Company had $5.5 billion in available borrowing capacity, including $4.5 billion in available collateralized lines of credit, $700.0 million of unpledged debt securities available as collateral for potential additional borrowings, and available unsecured lines of credit of $300.0 million.
In addition to $476.6 million in cash and cash equivalents at December 31, 2024, the Company had $5.7 billion in available borrowing capacity, including $4.0 billion in available collateralized lines of credit, $1.3 billion of unpledged debt securities available as collateral for potential additional borrowings, and available unsecured lines of credit of $348.0 million.
Included are $123.6 million, with a fair value of $113.5 million, in private label residential securities with weighted average credit support of 23%. The collateral underlying these mortgage investments includes both fixed-rate and adjustable-rate residential mortgage loans. Commercial securities totaled $12.2 million, with a fair value of $11.5 million. These securities have weighted average credit support of 22%.
Included are $119.8 million, with a fair value of $111.8 million, in private label residential securities with weighted-average credit support of 22%. The collateral underlying these mortgage investments includes both fixed-rate and adjustable-rate residential mortgage loans. Commercial securities totaled $9.6 million, with a fair value of $9.4 million. These securities have weighted-average credit support of 27%.
Wealth management revenues, including brokerage commissions and fees and trust income, increased $1.7 million, or 16%, to $12.8 million for the year ended December 31, 2023. The wealth management team continued to demonstrate notable success in building relationships, resulting in a 23% increase in assets under management year-over-year to $1.7 billion as of December 31, 2023.
Wealth management revenues, including brokerage commissions and fees and trust income, increased $2.4 million, or 19%, to $15.2 million for the year ended December 31, 2024. The wealth management team continued to demonstrate notable success in building relationships, contributing to a 20% increase in assets under management year-over-year to $2.1 billion as of December 31, 2024.
The Company’s ten largest commercial and commercial real estate funded and unfunded relationships at December 31, 2023 aggregated to $505.7 million, of which $348.3 million was funded, compared to $468.9 million at December 31, 2022, of which $312.4 million was funded.
The Company’s ten largest commercial and commercial real estate funded and unfunded relationships at December 31, 2024 aggregated to $547.5 million, of which $433.0 million was funded, compared to $505.7 million at December 31, 2023, of which $348.3 million was funded.
Treasury securities, obligations of U.S. government agencies, and obligations of U.S. government sponsored entities totaled $2.1 billion, or 82%, of the total portfolio. The portfolio includes $135.9 million, with a fair value of $125.0 million, in private label residential and commercial mortgage-backed securities and collateralized mortgage obligations.
Treasury securities, obligations of U.S. government agencies, and obligations of U.S. government sponsored entities totaled $2.4 billion, or 82%, of the total portfolio at December 31, 2024. The portfolio includes $129.5 million, with a fair value of $121.2 million, in private label residential and commercial mortgage-backed securities and collateralized mortgage obligations.
Time deposits over $250,000 were $550.3 million and $149.5 million at December 31, 2023 and December 31, 2022, respectively.
Time deposits over $250,000 were $549.9 million and $550.3 million at December 31, 2024 and December 31, 2023, respectively.
Debt securities generally return principal and interest monthly. The modified duration of the available-for-sale securities portfolio and the total portfolio was 4.5 and 4.9, respectively, at December 31, 2023, compared to 3.7 and 4.2, respectively, at December 31, 2022.
The modified duration of the available-for-sale securities portfolio and the total portfolio was 4.7 and 4.9, respectively, at December 31, 2024, compared to 4.5 and 4.9, respectively, at December 31, 2023.
Overview – Strategy and Results Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”), a financial holding company, registered under the Bank Holding Company Act of 1956, as amended (the “BHC Act”), is one of the largest community banks in Florida, with $14.6 billion in assets and $11.8 billion in deposits as of December 31, 2023.
Overview – Strategy and Results Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”), a financial holding company registered under the BHC Act of 1956, is one of the largest banks in Florida, with $15.2 billion in assets and $12.2 billion in deposits as of December 31, 2024.
Diluted earnings per share (“EPS”) was $0.35 and adjusted diluted EPS 1 2 was $0.43 in the fourth quarter of 2023, compared to diluted EPS of $0.37 and adjusted diluted EPS 1 of $0.46 in the third quarter of 2023 and compared to diluted EPS of $0.34 and adjusted diluted EPS 1 of $0.56 in the fourth quarter of 2022.
Diluted earnings per share was $0.40 and adjusted diluted EPS 1 2 was $0.48 in the fourth quarter of 2024, compared to diluted EPS of $0.36 and adjusted diluted EPS 1 of $0.36 in the third quarter of 2024 and compared to diluted EPS of $0.35 and adjusted diluted EPS 1 of $0.37 in the fourth quarter of 2023.
Off-Balance Sheet Transactions In the normal course of business, the Company may engage in a variety of financial transactions that, under generally accepted accounting principles, either are not recorded on the balance sheet or are recorded on the balance sheet in amounts that differ from the full contract or notional amounts.
Off-Balance Sheet Transactions In the normal course of business, the Company may engage in a variety of financial transactions that, under GAAP, either are not recorded on the balance sheet or are recorded on the balance sheet in amounts that differ from the full contract or notional amounts. These transactions involve varying elements of market, credit and liquidity risk.
Included in the balance as of December 31, 2023 were $1.0 billion of fixed rate mortgages, $865.2 million of adjustable rate mortgages, and $488.2 million in home equity loans and home equity lines of credit ("HELOCs"), compared to $964.3 million, $402.3 million and $482.9 million, respectively, as of December 31, 2022.
Included in the balance as of December 31, 2024 were $1.0 billion of fixed rate mortgages, $970.2 million of ARMs, and $614.7 million in home equity loans and HELOCs, compared to $1.0 billion, $865.2 million and $488.2 million, respectively, as of December 31, 2023.
Total uninsured deposits were estimated to be $4.1 billion at December 31, 2023, representing 35% of overall deposit accounts. This includes public funds under the Florida Qualified Public Depository program, which provides loss protection to depositors beyond FDIC insurance limits. Excluding such balances, the uninsured and uncollateralized deposits were 29% of total deposits.
This includes public funds under the Florida Qualified Public Depository program, which provides loss protection to depositors beyond FDIC insurance limits. Excluding such balances, the uninsured and uncollateralized deposits were 30% of total deposits.
Macroeconomic Outlook Baseline” and “Alternative Scenario 3 - Downside - 90th Percentile” scenarios.
Macroeconomic Outlook Baseline” (Baseline), “Alternative Scenario 1 – Upside- 10th Percentile” (S1), and “Alternative Scenario 3 - Downside - 90th Percentile” (S3) scenarios.
Sweep repurchase agreements with customers had an average balance of $271.0 million for the year ended December 31, 2023, increasing $149.7 million, or 123%, compared to $121.3 million for the year ended December 31, 2022. The average rate on customer repurchase accounts was 3.07% in 2023 compared to 0.81% in 2022.
Sweep repurchase agreements with customers averaged $269.3 million for the year ended December 31, 2024, a decrease of $1.7 million, or 1%, compared to $271.0 million for the year ended December 31, 2023. The average rate on customer repurchase accounts was 3.49% in 2024, compared to 3.07% in 2023.
The Company had an average balance of $175.2 million in FHLB borrowings outstanding for the year ended December 31, 2023, with an average interest rate of 3.64%. The average balance of FHLB borrowings was $10.3 million in 2022.
The Company had an average balance of $184.0 million in FHLB borrowings outstanding for the year ended December 31, 2024, with an average interest rate of 4.20%. The average balance of FHLB borrowings was $175.2 million at 3.64% in 2023. In 2024, average long-term debt of $106.6 million had an average rate of 7.02%.
Fourth Quarter Results and Analysis Net income totaled $29.5 million in the fourth quarter of 2023, a decrease of $1.9 million, or 6%, from the third quarter of 2023, and an increase of $5.6 million, or 23%, compared to the fourth quarter of 2022.
Fourth Quarter Results and Analysis Net income totaled $34.1 million in the fourth quarter of 2024, an increase of $3.4 million, or 11%, from the third quarter of 2024, and an increase of $4.5 million, or 15%, compared to the fourth quarter of 2023.
The Company is a legal entity separate and distinct from Seacoast Bank and its other subsidiaries, and the Company’s primary source of cash and liquidity, other than securities offerings and borrowings, is dividends from its bank subsidiary.
The Company is a legal entity separate and distinct from Seacoast Bank and its other subsidiaries, and the Company’s primary source of cash and liquidity, other than securities offerings and borrowings, is dividends from its bank subsidiary. Seacoast Bank can pay up to $188.9 million of dividends to the Company without OCC approval (see “Part I. Item 1. Business”).
Noninterest income accounted for 14% of total revenue in 2023 and 16% in 2022 (net interest income plus noninterest income, excluding securities gains and losses). 34 Noninterest income is detailed as follows: For the Year Ended December 31, (In thousands, except percentages) 2023 2022 % Change Service charges on deposit accounts $ 18,278 $ 13,709 33% Interchange income 13,877 17,171 (19) Wealth management income 12,780 11,051 16 Mortgage banking fees 1,790 3,478 (49) Insurance agency income 4,510 805 460 SBA gains 2,105 842 150 BOLI income 8,401 5,572 51 Other 20,304 14,559 39 82,045 67,187 22 Securities losses, net (2,893) (1,096) 164 Total Noninterest Income $ 79,152 $ 66,091 20% Service charges on deposits for the year ended December 31, 2023 compared to the prior year increased $4.6 million, or 33%, to $18.3 million.
Noninterest income accounted for 17% of total revenue in 2024 and 14% in 2023 (net interest income plus noninterest income, excluding securities gains and losses). 34 Noninterest income is detailed as follows: For the Year Ended December 31, (In thousands, except percentages) 2024 2023 % Change Service charges on deposit accounts $ 20,852 $ 18,278 14 % Interchange income 7,599 13,877 (45) Wealth management income 15,168 12,780 19 Mortgage banking fees 1,774 1,790 (1) Insurance agency income 5,196 4,510 15 BOLI income 10,065 8,401 20 Other income 30,790 22,409 37 91,444 82,045 11 Securities (losses) gains, net (8,016) (2,893) 177 Total Noninterest Income $ 83,428 $ 79,152 5 % Service charges on deposits for the year ended December 31, 2024 increased $2.6 million, or 14%, compared to the prior year to $20.9 million.
Net interest income totaled $110.8 million in the fourth quarter of 2023, a decrease of $8.5 million, or 7%, from the third quarter of 2023 and a decrease of $8.9 million, or 7%, compared to the fourth quarter of 2022.
Net interest income totaled $115.8 million in the fourth quarter of 2024, an increase of $9.1 million, or 9%, from the third quarter of 2024 and an increase of $5.0 million, or 4%, compared to the fourth quarter of 2023.
The Company is also able to provide short-term financing of its activities by selling, under an agreement to repurchase, United States Treasury and Government agency debt securities not pledged to secure public deposits or trust funds.
Sources of liquidity are maintained through a portfolio of high quality marketable assets, such as residential mortgage loans, debt securities available-for-sale and interest-bearing deposits. The Company is also able to provide short-term financing of its activities by selling, under an agreement to repurchase, United States Treasury and Government agency debt securities not pledged to secure public deposits or trust funds.
The Company utilizes both quantitative and qualitative assessments to determine if a security has a credit loss. Quantitative assessments are based on a discounted cash flow method.
Seacoast analyzes AFS debt securities quarterly for credit losses utilizing both quantitative and qualitative assessments to determine if a security has a credit loss. Quantitative assessments are based on a discounted cash flow method.
In 2023, average long-term debt of $104.2 million carried an average cost of 6.96%, up from 4.09% in 2022, reflecting the impact of higher interest rates. 1 Non-GAAP measure, see “ Explanation of Certain Unaudited Non-GAAP Financial Measures ” for more information and a reconciliation to GAAP. 32 The following table details the Company’s average balance sheets, interest income and expenses, and yields and rates 1 , for the past three years: For the Year Ended December 31, 2023 2022 2021 (In thousands, except percentages) Average Balance Interest Yield/ Rate Average Balance Interest Yield/ Rate Average Balance Interest Yield/ Rate Assets Earning Assets: Securities Taxable $ 2,611,299 $ 82,926 3.18 % $ 2,568,568 $ 56,611 2.20 % $ 1,839,619 $ 29,206 1.59 % Nontaxable 13,733 438 3.19 22,188 690 3.11 25,369 730 2.88 Total Securities 2,625,032 83,364 3.18 2,590,756 57,301 2.21 1,864,988 29,936 1.61 Federal funds sold 368,659 18,871 5.12 433,359 4,103 0.95 763,795 1,043 0.14 Other investments 90,692 5,718 6.30 69,604 3,517 5.05 65,533 1,947 2.97 Loans 9,889,070 581,825 5.88 6,838,266 316,073 4.62 5,751,064 251,834 4.38 Total Earning Assets 12,973,453 689,778 5.32 9,931,985 380,994 3.84 8,445,380 284,760 3.37 Allowance for credit losses on loans (150,982) (94,693) (88,659) Cash and due from banks 184,035 305,775 332,664 Bank premises and equipment, net 116,516 85,568 71,771 Intangible assets 816,662 360,217 249,089 Bank owned life insurance 290,218 214,468 156,599 Other assets 392,872 248,108 170,210 Total Assets $ 14,622,774 $ 11,051,428 $ 9,337,054 Liabilities and Shareholders' Equity Interest-Bearing Liabilities: Interest-bearing demand $ 2,686,936 $ 41,438 1.54 % $ 2,220,307 $ 3,099 0.14 % $ 1,787,234 $ 895 0.05 % Savings 851,347 1,796 0.21 989,997 397 0.04 805,816 383 0.05 Money market 2,941,916 83,301 2.83 1,925,176 3,824 0.20 1,765,444 2,327 0.13 Time deposits 1,348,152 52,254 3.88 500,471 2,642 0.53 602,739 2,788 0.46 Securities sold under agreements to repurchase 270,999 8,323 3.07 121,318 986 0.81 113,881 141 0.12 Federal Home Loan Bank borrowings 175,247 6,378 3.64 10,264 330 3.22 — — — Other borrowings 104,158 7,245 6.96 74,713 3,056 4.09 71,495 1,685 2.36 Total Interest-Bearing Liabilities 8,378,755 200,735 2.40 5,842,246 14,334 0.25 5,146,609 8,219 0.16 Noninterest demand 4,087,335 3,667,345 2,851,687 Other liabilities 131,302 122,982 123,446 Total Liabilities 12,597,392 9,632,573 8,121,742 Shareholders' equity 2,025,382 1,418,855 1,215,312 Total Liabilities & Shareholders' Equity $ 14,622,774 $ 11,051,428 $ 9,337,054 Cost of deposits 1.50 % 0.11 % 0.08 % Interest expense as % of earning assets 1.55 % 0.14 % 0.10 % Net interest income/yield on earning assets $ 489,043 3.77 % $ 366,660 3.69 % $ 276,541 3.27 % 1 On a fully taxable equivalent basis.
In 2023, average long-term debt of $104.2 million had an average rate of 6.96%. 32 The following table details the Company’s average balance sheets, interest income and expenses, and yields and rates 1 , for the past three years: For the Year Ended December 31, 2024 2023 2022 (In thousands, except ratios) Average Balance Interest Yield/ Rate Average Balance Interest Yield/ Rate Average Balance Interest Yield/ Rate Assets Earning assets: Securities: Taxable $ 2,702,763 $ 99,456 3.68 % $ 2,611,299 $ 82,926 3.18 % $ 2,568,568 $ 56,611 2.20 % Nontaxable 5,707 164 2.87 13,733 438 3.19 22,188 690 3.11 Total Securities 2,708,470 99,620 3.68 2,625,032 83,364 3.18 2,590,756 57,301 2.21 Federal funds sold 446,149 23,619 5.29 368,659 18,871 5.12 433,359 4,103 0.95 Interest-bearing deposits with other banks and other investments 102,552 4,983 4.86 90,692 5,718 6.30 69,604 3,517 5.05 Total Loans, net 10,096,189 598,411 5.93 9,889,070 581,825 5.88 6,838,266 316,073 4.62 Total Earning Assets 13,353,360 726,633 5.44 12,973,453 689,778 5.32 9,931,985 380,994 3.84 Allowance for credit losses (144,280) (150,982) (94,693) Cash and due from banks 167,367 184,035 305,775 Premises and equipment, net 110,341 116,516 85,568 Intangible assets 815,945 816,662 360,217 Bank owned life insurance 303,486 290,218 214,468 Other assets including deferred tax assets 327,539 392,872 248,108 Total Assets $ 14,933,758 $ 14,622,774 $ 11,051,428 Liabilities and Shareholders' Equity Interest-bearing liabilities: Interest-bearing demand $ 2,614,893 $ 54,960 2.10 % $ 2,686,936 $ 41,438 1.54 % $ 2,220,307 $ 3,099 0.14 % Savings 570,046 2,283 0.40 851,347 1,796 0.21 989,997 397 0.04 Money market 3,775,352 140,967 3.73 2,941,916 83,301 2.83 1,925,176 3,824 0.20 Time deposits 1,656,269 70,777 4.27 1,348,152 52,254 3.88 500,471 2,642 0.53 Securities sold under agreements to repurchase 269,255 9,390 3.49 270,999 8,323 3.07 121,318 986 0.81 FHLB borrowings 183,962 7,726 4.20 175,247 6,378 3.64 10,264 330 3.22 Long-term debt, net 106,624 7,485 7.02 104,158 7,245 6.96 74,713 3,056 4.09 Total Interest-Bearing Liabilities 9,176,401 293,588 3.20 8,378,755 200,735 2.40 5,842,246 14,334 0.25 Noninterest demand 3,455,907 4,087,335 3,667,345 Other liabilities 149,389 131,302 122,982 Total Liabilities 12,781,697 12,597,392 9,632,573 Shareholders' equity 2,152,061 2,025,382 1,418,855 Total Liabilities & Equity $ 14,933,758 $ 14,622,774 $ 11,051,428 Cost of deposits 2.23 % 1.50 % 0.11 % Interest expense as a % of earning assets 2.20 % 1.55 % 0.14 % Net interest income as a % of earning assets $ 433,045 3.24 % $ 489,043 3.77 % $ 366,660 3.69 % 1 On a fully taxable equivalent basis.
In the first quarter of 2023, the Company acquired $483.6 million residential loans from Professional. Substantially all residential mortgage originations have been underwritten to conventional loan agency standards, including loans having balances that exceed agency value limitations.
Substantially all residential mortgage originations have been underwritten to conventional loan agency standards, including loans having balances that exceed agency value limitations.
Compared to December 31, 2022, nonaccrual loans totaled $28.8 million and OREO of $2.3 million that includes $1.8 million of branches taken out of service. Approximately 45% of nonaccrual loans were secured with real estate at December 31, 2023. Nonperforming loans to total loans outstanding at December 31, 2023 increased to 0.65% from 0.35% at December 31, 2022.
As of December 31, 2023, nonperforming assets included nonaccrual loans of $65.1 million and OREO of $7.6 million including $7.3 million of branches taken out of service. Approximately 69% of nonaccrual loans were secured with real estate at December 31, 2024. Nonperforming loans to total loans outstanding at December 31, 2024 increased to 0.90% from 0.65% at December 31, 2023.
Net interest income (on a fully taxable equivalent basis) 1 for the year ended December 31, 2023, was $489.0 million, increasing $122.4 million, or 33%, compared to the year ended December 31, 2022. Accretion on acquired loans totaled $56.7 million for the year ended December 31, 2023, compared to $18.4 million for the year ended December 31, 2022.
Net interest income (on a fully taxable equivalent basis) 1 for the year ended December 31, 2024, was $433.0 million, decreasing $56.0 million, or 11%, compared to the year ended December 31, 2023.
Intangible Assets and Impairment Testing – Critical Accounting Policies and Estimates Intangible assets consist of goodwill, core deposit intangible, customer relationship intangibles, and loan servicing rights. Goodwill represents the excess purchase price over the fair value of net assets acquired in business acquisitions. The core deposit intangible represents the excess intangible value of acquired deposit customer relationships.
Intangible Assets and Impairment Testing Goodwill represents the excess purchase price over the fair value of net assets acquired in business acquisitions. The core deposit intangible, which is the majority of the remaining intangible asset balance, represents the excess intangible value of acquired deposit customer relationships.
The following table details the maturities of time deposits of $250,000 and greater at December 31, 2023 and December 31, 2022: December 31, % of December 31, % of (In thousands, except percentages) 2023 Total 2022 Total Certificates of Deposit of $250,000 and Greater Maturity Group: Three months or less $ 106,940 19% $ 28,083 19% Over three through six months 14,743 3 40,511 27 Over six through 12 months 381,922 69 68,826 46 Over 12 months 46,657 9 12,059 8 Total Certificates of Deposit of $250,000 and Greater $ 550,262 100% $ 149,479 100% Customer repurchase agreements totaled $374.6 million at December 31, 2023, increasing $202.5 million, or 118%, from December 31, 2022.
The following table details the remaining maturities of time deposits of $250,000 and greater at December 31, 2024 and December 31, 2023: December 31, % of December 31, % of (In thousands, except percentages) 2024 Total 2023 Total Certificates of Deposit of $250,000 and Greater Maturity Group: Three months or less $ 279,868 51% $ 106,940 19% Over three through six months 139,766 25 14,743 3 Over six through 12 months 125,895 23 381,922 69 Over 12 months 4,405 1 46,657 9 Total Certificates of Deposit of $250,000 and Greater $ 549,934 100% $ 550,262 100% Customer repurchase agreements totaled $232.1 million at December 31, 2024, decreasing $142.5 million, or 38%, from December 31, 2023.
The Company’s total risk-based capital ratio was 15.92% at December 31, 2023, an increase from 15.79% at December 31, 2022. As of December 31, 2023, the Bank’s leverage ratio (Tier 1 capital to adjusted total assets) was 10.32%, compared to 10.44% at December 31, 2022, well above the minimum to be well capitalized under regulatory guidelines.
As of December 31, 2024, the Bank’s leverage ratio (Tier 1 capital to adjusted total assets) was 10.66%, compared to 10.32% at December 31, 2023, well above the minimum to be well-capitalized under regulatory guidelines. 53 The following table shows the components of regulatory capital to calculate regulatory capital ratios.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

13 edited+5 added−13 removed12 unchanged
The simulation of rising, declining and flat interest rate scenarios allows management to monitor and adjust interest rate sensitivity to assess the impact of market interest rate swings. The analysis of the impact on net interest income over a twelve month period is subjected to instantaneous changes in market rates on net interest income and is monitored at least quarterly.
The simulation of rising, declining and flat interest rate scenarios allows management to monitor and adjust interest rate sensitivity to assess the impact of market interest rate swings. The analysis of the impact on net interest income over a twelve- month period is subjected to instantaneous changes in market rates and is monitored at least quarterly.
This analysis includes assumptions for prepayments of loans and securities and assumptions for core deposit re-pricing. 53 The computations of interest rate sensitivity are based on the static balance sheet and do not necessarily include certain actions management may undertake to manage this risk in response to changes in interest rates in the future.
This analysis includes assumptions for prepayments of loans and securities and assumptions for core deposit re-pricing. The computations of interest rate sensitivity are based on the static balance sheet and do not necessarily include certain actions management may undertake to manage this risk in response to changes in interest rates in the future.
Particularly important are the assumptions driving prepayments and the expected changes in balances and pricing of the indeterminate life deposit portfolios. Core deposits are a more significant 54 funding source for the Company, making the lives attached to core deposits more important to the accuracy of our modeling of EVE.
Particularly important are the assumptions driving prepayments and the expected changes in balances and pricing of the indeterminate life deposit portfolios. Core deposits are a more significant funding source for the Company, making the lives attached to core deposits more important to the accuracy of our modeling of EVE.
The Company periodically reassesses its assumptions regarding the indeterminate lives of core deposits utilizing an independent third party resource to assist. The following table presents the projected impact of a change in interest rates on the balance sheet.
The Company periodically reassesses its assumptions regarding the indeterminate lives of core deposits utilizing an independent third-party resource to assist. 59 The following table presents the projected impact of a change in interest rates on the balance sheet.
BMI Banks - Southeast Region Index for the same period. The graph and table assume that $100 was invested on December 31, 2018 (the last day of trading for the year ended December 31, 2018) in each of Seacoast common stock, the NASDAQ Composite Index and the S&P U.S. BMI Banks - Southeast Region Index.
The graph and table assume that $100 was invested on December 31, 2019 (the last day of trading for the year ended December 31, 2019) in each of Seacoast common stock, the NASDAQ Composite Index and the S&P U.S. BMI Banks - Southeast Region Index.
The objective is to optimize the Company’s financial position, liquidity, and net interest income while limiting volatility. Senior management regularly reviews the overall interest rate risk position and evaluates strategies to manage the risk. The Company's Asset and Liability Management Committee (“ALCO”) uses simulation analysis to monitor changes in net interest income due to changes in market interest rates.
The objective is to optimize the Company’s financial position, liquidity, and net interest income while limiting volatility. Senior management regularly reviews the overall interest rate risk position and evaluates strategies to manage the risk. The Company's ALCO uses simulation analysis to monitor changes in net interest income due to changes in market interest rates.
The following table presents the ALCO simulation model's projected impact of a change in interest rates on the projected baseline net interest income for the 12 and 24 month periods beginning on January 1, 2024, holding all other changes in the balance sheet static.
The following table presents the ALCO simulation model's projected impact of a change in interest rates on the projected baseline net interest income for the 12 and 24 month periods beginning on January 1, 2025, holding all balances on the balance sheet static.
The ALCO meets regularly and is responsible for reviewing the interest rate sensitivity position of the Company and establishing policies to monitor and limit exposure to interest rate risk. The policies established by the ALCO are reviewed and approved by the Company’s board of directors.
The Company is also exposed to market risk in its investing activities. The ALCO meets regularly and is responsible for reviewing the interest rate sensitivity position of the Company and establishing policies to monitor and limit exposure to interest rate risk. The policies established by the ALCO are reviewed and approved by the Company’s Board of Directors.
This change in interest rates assumes parallel shifts in the yield curve and does not take into account changes in the slope of the yield curve. % Change in Economic Value of Equity Changes in Interest Rates 2023 +2.00% (14.8) +1.00% (6.8) Current — -1.00% 4.3 -2.00% 5.7 -3.00% 6.7 While an instantaneous and severe shift in interest rates is used in this analysis, a gradual shift in interest rates would have a much more modest impact.
This change in interest rates assumes parallel shifts in the yield curve and does not take into account changes in the slope of the yield curve. % Change in Economic Value of Equity Changes in Interest Rates December 31, 2024 +3.00% (26.1%) +2.00% (17.0) +1.00% (8.2) Current — -1.00% 6.8 -2.00% 12.4 -3.00% 16.1 While an instantaneous and severe shift in interest rates is used in this analysis, a gradual shift in interest rates would have a much more modest impact.
The balances of interest rate sensitive assets and liabilities are presented in the periods in which they reprice to market rates or mature. The amounts are aggregated to reflect the interest rate sensitivity gap.
The Company's calculation of interest rate sensitivity for the year ended December 31, 2024 is presented below. The balances of interest rate sensitive assets and liabilities are presented in the periods in which they reprice to market rates or mature. The amounts are aggregated to reflect the interest rate sensitivity gap.
Interest rate risk, defined as the exposure of net interest income and Economic Value of Equity (“EVE”) to adverse movements in interest rates, is the Company’s primary market risk, and mainly arises from the structure of the balance sheet (non-trading activities). The Company is also exposed to market risk in its investing activities.
Market Risk Market risk refers to potential losses arising from changes in interest rates, and other relevant market rates or prices. Interest rate risk, defined as the exposure of net interest income and EVE to adverse movements in interest rates, is the Company’s primary market risk, and mainly arises from the structure of the balance sheet (non-trading activities).
BMI Banks - Southeast Region Index 100.00 140.94 126.37 180.49 146.81 151.44 Source: S&P Global Market Intelligence © 2024 62 SELECTED QUARTERLY INFORMATION QUARTERLY CONSOLIDATED INCOME STATEMENTS (UNAUDITED) 2023 Quarters 2022 Quarters (In thousands, except per share data) Fourth Third Second First Fourth Third Second First Net interest income: Interest income $ 176,855 $ 179,846 $ 174,283 $ 157,991 $ 127,109 $ 91,404 $ 83,749 $ 78,232 Interest expense 66,036 60,540 47,320 26,839 7,400 3,120 2,102 1,710 Net interest income 110,819 119,306 126,963 131,152 119,709 88,284 81,647 76,522 Provision for credit losses 3,990 2,694 (764) 31,598 14,129 4,676 822 6,556 Net interest income after provision for credit losses on loans 106,829 116,612 127,727 99,554 105,580 83,608 80,825 69,966 Noninterest income: Service charges on deposit accounts 4,828 4,648 4,560 4,242 3,996 3,504 3,408 2,801 Interchange income 2,433 1,684 5,066 4,694 4,650 4,138 4,255 4,128 Wealth management income 3,261 3,138 3,318 3,063 2,886 2,732 2,774 2,659 Mortgage banking fees 378 410 576 426 426 434 932 1,686 Insurance agency income 1,066 1,183 1,160 1,101 805 — — — SBA gains 921 613 249 322 105 108 473 156 BOLI income 2,220 2,197 2,068 1,916 1,526 1,363 1,349 1,334 Other income 4,668 4,307 4,755 6,574 3,239 4,186 4,073 3,061 Securities (losses) gains, net (2,437) (387) (176) 107 18 (362) (300) (452) Total noninterest income 17,338 17,793 21,576 22,445 17,651 16,103 16,964 15,373 Noninterest expenses: Salaries and wages 38,435 46,431 45,155 47,616 45,405 28,420 28,056 28,219 Employee benefits 6,678 7,206 7,472 8,562 5,300 4,074 4,151 5,501 Outsourced data processing costs 8,609 8,714 20,222 14,553 9,918 5,393 6,043 6,156 Telephone and data lines 1,196 1,409 1,518 1,081 1,185 973 908 733 Occupancy 6,316 6,349 7,065 6,938 5,457 5,046 4,050 3,986 Furniture and equipment 2,028 2,052 2,345 2,267 1,944 1,462 1,588 1,426 Marketing 2,995 1,876 2,047 2,238 1,772 1,461 1,882 1,171 Legal and professional fees 3,294 2,679 4,062 7,479 9,174 3,794 2,946 4,789 FDIC assessments 2,813 2,258 2,116 1,443 889 760 699 789 Amortization of intangibles 6,888 7,457 7,654 6,727 4,763 1,446 1,446 1,446 Other real estate owned expense and net loss (gain) on sale 573 274 (57) 195 (411) 9 (968) (164) Provision for credit losses on unfunded commitments — — — 1,239 — 1,015 — 142 Other 6,542 7,210 8,266 7,137 6,114 7,506 5,347 4,723 Total noninterest expenses 86,367 93,915 107,865 107,475 91,510 61,359 56,148 58,917 Income before income taxes 37,800 40,490 41,438 14,524 31,721 38,352 41,641 26,422 Income taxes 8,257 9,076 10,189 2,697 7,794 9,115 8,886 5,834 Net income $ 29,543 $ 31,414 $ 31,249 $ 11,827 $ 23,927 $ 29,237 $ 32,755 $ 20,588 63 2023 Quarters 2022 Quarters (In thousands, except per share data) Fourth Third Second First Fourth Third Second First Per Common Share Data Net income diluted $ 0.35 $ 0.37 $ 0.37 $ 0.15 $ 0.34 $ 0.47 $ 0.53 $ 0.33 Net income basic 0.35 0.37 0.37 0.15 0.34 0.48 0.53 0.34 Cash dividends declared: Common stock $ 0.18 $ 0.18 $ 0.18 $ 0.17 $ 0.17 $ 0.17 $ 0.17 $ 0.13 Market price common stock: Low close 19.59 21.51 18.83 21.31 29.60 30.23 31.46 32.43 High close 29.28 27.01 23.85 33.50 34.94 36.75 35.21 39.15 Bid price at end of period 28.46 21.82 21.78 23.18 31.19 30.23 33.04 35.02 64
BMI Banks - Southeast Region Index 100.00 89.66 128.06 104.16 107.45 139.40 Source: S&P Global Market Intelligence © 2025 61 SELECTED QUARTERLY INFORMATION QUARTERLY CONSOLIDATED INCOME STATEMENTS (UNAUDITED) 2024 Quarters 2023 Quarters (In thousands, except per share data) Fourth Third Second First Fourth Third Second First Net interest income: Interest income $ 185,930 $ 184,115 $ 179,808 $ 175,706 $ 176,855 $ 179,846 $ 174,283 $ 157,991 Interest expense 70,126 77,450 75,384 70,628 66,036 60,540 47,320 26,839 Net interest income 115,804 106,665 104,424 105,078 110,819 119,306 126,963 131,152 Provision for credit losses 3,699 6,273 4,918 1,368 3,990 2,694 (764) 31,598 Net interest income after provision for credit losses on loans 112,105 100,392 99,506 103,710 106,829 116,612 127,727 99,554 Noninterest income: Service charges on deposit accounts 5,138 5,412 5,342 4,960 4,828 4,648 4,560 4,242 Interchange income 1,860 1,911 1,940 1,888 2,433 1,684 5,066 4,694 Wealth management income 4,019 3,843 3,766 3,540 3,261 3,138 3,318 3,063 Mortgage banking fees 326 485 582 381 378 410 576 426 Insurance agency income 1,151 1,399 1,355 1,291 1,066 1,183 1,160 1,101 BOLI income 2,627 2,578 2,596 2,264 2,220 2,197 2,068 1,916 Other income 10,335 7,864 6,647 5,944 5,589 4,920 5,004 6,896 Securities (losses) gains, net (8,388) 187 (44) 229 (2,437) (387) (176) 107 Total noninterest income 17,068 23,679 22,184 20,497 17,338 17,793 21,576 22,445 Noninterest expenses: Salaries and wages 42,378 40,697 38,937 40,304 38,435 46,431 45,155 47,616 Employee benefits 6,548 6,955 6,861 7,889 6,678 7,206 7,472 8,562 Outsourced data processing costs 8,307 8,003 8,210 12,118 8,609 8,714 20,222 14,553 Occupancy 7,234 7,096 7,180 8,037 7,512 7,758 8,583 8,019 Furniture and equipment 2,004 2,060 1,956 2,011 2,028 2,052 2,345 2,267 Marketing 2,126 2,729 3,266 2,655 2,995 1,876 2,047 2,238 Legal and professional fees 2,807 2,708 1,982 2,151 3,294 2,679 4,062 7,479 FDIC assessments 2,274 1,882 2,131 2,158 2,813 2,258 2,116 1,443 Amortization of intangibles 5,587 6,002 6,003 6,292 6,888 7,457 7,654 6,727 Other real estate owned expense and net loss (gain) on sale 84 491 (109) (26) 573 274 (57) 195 Provision for credit losses on unfunded commitments 250 250 251 250 — — — 1,239 Other 5,976 5,945 5,869 6,532 6,542 7,210 8,266 7,137 Total noninterest expenses 85,575 84,818 82,537 90,371 86,367 93,915 107,865 107,475 Income before income taxes 43,598 39,253 39,153 33,836 37,800 40,490 41,438 14,524 Provision for income taxes 9,513 8,602 8,909 7,830 8,257 9,076 10,189 2,697 Net income $ 34,085 $ 30,651 $ 30,244 $ 26,006 $ 29,543 $ 31,414 $ 31,249 $ 11,827 Per Common Share Data Net income diluted $ 0.40 $ 0.36 $ 0.36 $ 0.31 $ 0.35 $ 0.37 $ 0.37 $ 0.15 Net income basic 0.40 0.36 0.36 0.31 0.35 0.37 0.37 0.15 62 2024 Quarters 2023 Quarters (In thousands, except per share data) Fourth Third Second First Fourth Third Second First Cash dividends declared: Common stock $ 0.18 $ 0.18 $ 0.18 $ 0.18 $ 0.18 $ 0.18 $ 0.18 $ 0.17 Market price common stock: Low close 25.42 22.70 21.59 22.93 19.59 21.51 18.83 21.31 High close 30.71 28.33 24.25 27.28 29.28 27.01 23.85 33.50 Bid price at end of period 27.53 26.49 23.33 24.86 28.46 21.82 21.78 23.18 63
This change in interest rates assumes parallel shifts in the yield curve and does not take into account changes in the slope of the yield curve nor changes in balance sheet size or mix. % Change in Projected Baseline Net Interest Income December 31, 2023 Changes in Interest Rates 1-12 months 13-24 months +2.00% (9.2%) (7.7%) +1.00% (3.7) (2.4) Current — — -1.00% 1.3 — -2.00% 2.6 (1.2) -3.00% 1.7 (5.3) The Company's calculation of interest rate sensitivity for the year ended December 31, 2023 is presented below.
It is important to note that the results in the table below assume parallel shifts in the yield curve and do not take into account changes in the slope of the yield curve nor changes in balance sheet size or mix. % Change in Projected Baseline Net Interest Income December 31, 2024 Change in Interest Rates 1-12 months 13-24 months +3.00% (16.6) (12.8) +2.00% (10.8) (8.0) +1.00% (5.1) (3.6) Current — — -1.00% 3.6 1.6 -2.00% 6.9 2.0 -3.00% 10.3 2.8 The computations of interest rate risk do not necessarily include certain actions management may undertake to manage this risk in response to changes in interest rates.
Removed
This may include specific efforts to change the size of the balance sheet or the relative composition of fixed versus variable rate assets and liabilities as well as qualitative changes that could impact quantitative performance.
Added
Management may adjust asset or liability pricing or structure in order to manage interest rate risk through an interest rate cycle. This may include the use of investment portfolio purchases or sales or the use of derivative financial instruments, such as interest rate swaps, options, caps, floors, futures or forward contracts.
Removed
Interest Rate Sensitivity Analysis 1 December 31, 2023 (In thousands) 0-3 Months 4-12 Months 1-5 Years Over 5 Years Total Federal funds sold and interest bearing deposits $ 285,528 $ — $ — $ — $ 285,528 Debt securities 2 424,938 178,038 791,899 1,121,458 2,516,333 Loans 3 2,699,669 1,289,320 4,234,040 1,844,302 10,067,331 Other Assets — — — 83,621 83,621 Earning assets $ 3,410,135 $ 1,467,358 $ 5,025,939 $ 3,049,381 $ 12,952,813 Non-maturity deposits 4,401,164 321,812 266,291 1,766,685 6,755,952 Time deposits 782,833 661,788 30,822 559 1,476,002 Borrowings 449,936 — 62,561 18,378 530,875 Interest bearing liabilities $ 5,633,933 $ 983,600 $ 359,674 $ 1,785,622 $ 8,762,829 Interest rate swaps 600,000 — (600,000) — — Interest sensitivity gap $ (1,623,798) $ 483,758 $ 4,066,265 $ 1,263,759 $ 4,189,984 Cumulative gap $ (1,623,798) $ (1,140,040) $ 2,926,225 $ 4,189,984 Cumulative gap to total earning assets (13 %) (9 %) 23 % 32 % Earning assets to interest bearing liabilities 61 % 149 % 1397 % 171 % 1 The repricing dates may differ from contractual maturity dates for certain assets due to prepayment assumptions. 2 Securities are stated at carrying value. 3 Includes loans held for sale.
Added
This may include specific efforts to change the size of the balance sheet or the relative composition of fixed versus variable rate assets and liabilities as well as qualitative changes that could impact quantitative performance. 58 Interest Rate Sensitivity Analysis 1 December 31, 2024 (In thousands) 0-3 Months 4-12 Months 1-5 Years Over 5 Years Total Federal funds sold and interest-bearing deposits $ 313,617 $ — $ — $ — $ 313,617 Debt securities 2 514,492 197,741 912,776 1,236,720 2,861,729 Loans 3 3,178,747 1,204,440 4,275,760 1,658,280 10,317,227 Other Assets — — — 93,045 93,045 Earning assets $ 4,006,856 $ 1,402,181 $ 5,188,536 $ 2,988,045 $ 13,585,618 Non-maturity deposits 5,018,117 329,910 270,478 1,655,677 7,274,182 Time deposits 771,897 782,670 60,647 659 1,615,873 Borrowings 327,331 12,515 225,000 19,191 584,037 Interest-bearing liabilities $ 6,117,345 $ 1,125,095 $ 556,125 $ 1,675,527 $ 9,474,092 Interest rate swaps 800,000 (750,000) (50,000) — — Interest sensitivity gap $ (1,310,489) $ (472,914) $ 4,582,411 $ 1,312,518 $ 4,111,526 Cumulative gap $ (1,310,489) $ (1,783,403) $ 2,799,008 $ 4,111,526 Cumulative gap to total earning assets (10 %) (13 %) 21 % 30 % Earning assets to interest-bearing liabilities 65 % 125 % 933 % 178 % 1 The repricing dates may differ from contractual maturity dates for certain assets due to prepayment assumptions. 2 Securities are stated at carrying value. 3 Includes loans held for sale.
Removed
Market Risk Market risk refers to potential losses arising from changes in interest rates, and other relevant market rates or prices.
Added
Mortgage origination and refinancing tends to slow as interest rates increase, and higher interest rates will likely reduce the Company’s earnings from such activities and the income from the sale of residential mortgage loans in the secondary market.
Removed
Mortgage origination and refinancing tends to slow as interest rates increase, and higher interest rates will likely reduce the Company’s earnings from such activities and the income from the sale of residential mortgage loans in the secondary market. 55 Table 1 - Capital Resources December 31, (In thousands, except percentages) 2023 2022 Tier 1 Capital Common stock $ 8,486 $ 7,162 Additional paid in capital 1,808,883 1,377,698 Retained earnings 467,305 423,863 Treasury stock (16,710) (13,019) Goodwill (732,417) (480,319) Intangibles (95,645) (71,285) Other 1 53,597 33,195 Common Equity Tier 1 Capital $ 1,493,499 $ 1,277,295 Qualifying Trust Preferred Debt $ 72,207 $ 84,533 Other 4 4 Total Tier 1 Capital $ 1,565,710 $ 1,361,832 Tier 2 Capital Allowance for credit losses on loans 1 , as limited $ 126,553 $ 92,336 Qualifying subordinated debt 21,534 — Total Tier 2 Capital 148,087 92,336 Total Risk-Based Capital $ 1,713,797 $ 1,454,168 Risk weighted assets $ 10,766,942 $ 9,208,859 Common equity Tier 1 ratio (CET1) 13.87 % 13.87 % Regulatory minimum 2 4.50 4.50 Tier 1 capital ratio 14.54 14.79 Regulatory minimum 2 6.00 6.00 Total capital ratio 15.92 15.79 Regulatory minimum 2 8.00 8.00 Tier 1 capital to adjusted total assets 11.00 11.46 Regulatory minimum 4.00 4.00 Shareholders' equity to assets 14.46 13.24 Average shareholders' equity to average total assets 13.85 12.84 Tangible shareholders' equity to tangible assets 9.31 9.08 1 Upon adoption of the CECL accounting standard in 2020, the Company elected, in accordance with interagency guidance, to delay the estimated impact on regulatory capital resulting from the implementation of CECL.
Added
Stock Performance Graph The line graph below compares the cumulative total stockholder return on Seacoast common stock with the cumulative total return of the NASDAQ Composite Index and the S&P U.S. BMI Banks - Southeast Region Index for the same period.
Removed
The guidance provides banks the option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period (five-year transition option).
Added
The cumulative total return represents the change in stock price and the amount of dividends received over the period, assuming all dividends were reinvested. 60 Index December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 December 31, 2023 December 31, 2024 Seacoast Banking Corporation of Florida 100.00 96.34 117.13 105.30 99.02 98.54 NASDAQ Composite Index 100.00 144.92 177.06 119.45 172.77 223.87 S&P U.S.
Removed
As of December 31, 2023 and 2022, the adjustment to Tier 1 Capital was $12.3 million and $18.5 million, respectively, and the adjustment to Tier 2 Capital was $15.1 million and $22.6 million, respectively. 2 Excludes the Basel III capital conservation buffer of 2.5% which, if not exceeded, may constrain dividends, equity repurchases and compensation. 56 Table 2 - Loans Outstanding December 31, (In thousands) 2023 2022 Amount % to Total Loans Amount % to Total Loans Construction and land development $ 767,622 8 % $ 587,332 7 % Commercial real estate - owner occupied 1,670,281 17 1,478,302 18 Commercial real estate - non-owner occupied 3,319,890 33 2,589,774 32 Residential real estate 2,445,692 24 1,849,503 23 Commercial and financial 1,607,888 16 1,353,226 17 Consumer 251,567 2 286,587 3 Total Loans $ 10,062,940 100 % $ 8,144,724 100 % 57 Table 3 - Loan Maturity Distribution The following table presents loans by maturity, separately presenting fixed rate loans from those with floating or adjustable rates.
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December 31, 2023 After one year but within five years: After five years but within fifteen years: After fifteen years: (In thousands) In one year or less Floating or adjustable Fixed Floating or adjustable Fixed Floating or adjustable Fixed Total Construction and Land Development $ 197,008 $ 153,313 $ 67,833 $ 98,822 $ 46,411 $ 160,549 $ 43,686 $ 767,622 Commercial Real Estate - Owner Occupied 87,415 91,503 490,522 254,293 679,573 54,870 12,105 1,670,281 Commercial Real Estate - Non-owner Occupied 359,080 239,473 1,147,472 514,861 1,018,529 32,924 7,551 3,319,890 Residential Real Estate 10,571 20,400 13,303 322,655 144,353 1,004,145 930,265 2,445,692 Commercial and Financial 346,281 135,645 504,206 97,224 270,603 179,926 74,003 1,607,888 Consumer 11,568 35,957 79,469 12,325 58,870 24,284 29,094 251,567 Total $ 1,011,923 $ 676,291 $ 2,302,805 $ 1,300,180 $ 2,218,339 $ 1,456,698 $ 1,096,704 $ 10,062,940 Table 4 - Select Credit Ratios For the Year Ended December 31, (In thousands, except percentages) 2023 2022 2021 Daily average loans outstanding 1 $ 9,889,070 $ 6,838,266 $ 5,751,064 Ratio of allowance for credit losses on loans to loans outstanding at end of year 1.48 % 1.40 % 1.41 % Ratio of net charge-offs (recoveries) to average loans outstanding Construction and land development — % — % — % Commercial real estate - owner occupied — — — Commercial real estate - non-owner occupied — — 0.02 Residential real estate — — (0.02) Commercial and financial 0.17 — 0.05 Consumer 0.05 0.01 — Total ratio of net charge-offs to average loans outstanding 0.22 % 0.01 % 0.05 % 1 Net of unearned income.
Removed
Table 5 - Allowance for Credit Losses on Loans December 31, (In thousands, except percentages) 2023 2022 Allocation by Loan Type Amount % of Total Allowance Amount % of Total Allowance Construction and land development $ 8,637 6 % $ 6,464 6 % Commercial real estate - owner occupied 5,529 4 6,051 5 Commercial real estate - non-owner occupied 48,288 32 43,258 38 Residential real estate 39,016 26 29,605 26 Commercial and financial 34,343 23 15,648 14 Consumer 13,118 9 12,869 11 Total Allowance for Credit Losses on Loans $ 148,931 100 % $ 113,895 100 % 58 Table 6 - Nonperforming Assets December 31, (In thousands, except percentages) 2023 2022 Nonaccrual loans 1,2 Construction and land development $ 824 $ 549 Commercial real estate loans - owner occupied 9,684 2,340 Commercial real estate loans - non-owner occupied 8,735 4,483 Residential real estate loans 9,986 9,457 Commercial and financial loans 34,693 11,672 Consumer loans 1,182 342 Total Nonaccrual Loans $ 65,104 $ 28,843 Other real estate owned Construction and land development $ — $ 109 Commercial real estate loans - non-owner occupied 221 221 Residential real estate loans — 200 Bank branches closed 7,339 1,771 Total Other Real Estate Owned $ 7,560 $ 2,301 Total Nonperforming Assets $ 72,664 $ 31,144 Amount of loans outstanding at end of year 2 $ 10,062,940 $ 8,144,724 Ratio of total nonperforming assets to loans outstanding and other real estate owned at end of period 0.72 % 0.38 % Ratio of total nonaccrual loans to loans outstanding at end of period 0.65 0.35 Ratio of allowance for credit losses on loans to total nonaccrual loans 229 395 Accruing loans past due 90 days or more $ 1,179 $ 1,848 1 Interest income that could have been recorded during 2023 and 2022 related to nonaccrual loans was $0.5 million and $1.6 million, respectively, none of which was included in interest income or net income. 2 Net of unearned income. 59 Table 7 - Maturity Distribution of Available-For-Sale Debt Securities December 31, 2023 (In thousands) Less than 1 Year After 1-5 Years After 5-10 Years After 10 Years Total Amortized Cost U.S.
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Treasury securities and obligations of U.S. government agencies $ 1,185 $ 6,066 $ 8,965 $ 21,502 $ 37,718 Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 13 2,659 5,255 1,144,826 1,152,753 Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 24,950 170,046 109,497 80,520 385,013 Private mortgage-backed securities and collateralized mortgage obligations — — 1,161 134,717 135,878 Collateralized loan obligations — 4,038 114,383 182,434 300,855 Obligations of state and political subdivisions 3,353 — 500 6,633 10,486 Other debt securities — 7,389 — 19,210 26,599 Total Available-For-Sale Debt Securities $ 29,501 $ 190,198 $ 239,761 $ 1,589,842 $ 2,049,302 Fair Value U.S.
Removed
Treasury securities and obligations of U.S. government agencies $ 1,172 $ 6,069 $ 8,929 $ 21,275 $ 37,445 Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 13 2,619 5,065 961,684 969,381 Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 24,465 163,673 101,636 78,498 368,272 Private mortgage-backed securities and collateralized mortgage obligations — — 1,086 123,917 125,003 Collateralized loan obligations — 4,028 113,880 181,547 299,455 Obligations of state and political subdivisions 3,332 — 433 5,625 9,390 Other debt securities — 7,382 — 19,692 27,074 Total Available-For-Sale Debt Securities $ 28,982 $ 183,771 $ 231,029 $ 1,392,238 $ 1,836,020 Weighted Average Yield 1 U.S.
Removed
Treasury securities and obligations of U.S. government agencies 3.99 % 4.81 % 6.43 % 5.83 % 5.75 % Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 2.79 3.69 3.09 2.03 2.03 Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 2.92 3.16 3.14 5.69 3.67 Private mortgage-backed securities and collateralized mortgage obligations — — 6.31 2.76 2.79 Collateralized loan obligations — 7.02 6.99 7.02 7.01 Obligations of state and political subdivisions 2.52 — 1.55 2.16 2.25 Other debt securities — 6.70 — 7.15 7.03 Total Available-For-Sale Debt Securities 2.92 % 3.44 % 5.11 % 2.96 % 3.26 % 1 All yields and rates have been computed using amortized costs. 60 Table 8 - Maturity Distribution of Held-to-Maturity Debt Securities December 31, 2023 (In thousands) Less than 1 Year After 1-5 Years After 5-10 Years After 10 Years Total Amortized Cost Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities $ — $ — $ — $ 590,676 $ 590,676 Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 196 20,679 62,500 6,262 89,637 Total Held-to-Maturity Debt Securities $ 196 $ 20,679 $ 62,500 $ 596,938 $ 680,313 Fair Value Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities $ — $ — $ — $ 478,930 $ 478,930 Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 195 18,960 55,493 4,781 79,429 Total Held-to-Maturity Debt Securities $ 195 $ 18,960 $ 55,493 $ 483,711 $ 558,359 Weighted Average Yield 1 Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities — % — % — % 1.88 % 1.88 % Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities — 2.48 2.29 1.67 2.28 Total Held-to-Maturity Debt Securities — % 2.48 % 2.29 % 1.88 % 1.93 % 1 All yields and rates have been computed using amortized costs. 61 Stock Performance Graph The line graph below compares the cumulative total stockholder return on Seacoast common stock with the cumulative total return of the NASDAQ Composite Index and the S&P U.S.
Removed
The cumulative total return represents the change in stock price and the amount of dividends received over the period, assuming all dividends were reinvested.
Removed
Index December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 December 31, 2023 Seacoast Banking Corporation of Florida 100.00 117.49 113.18 137.62 123.72 116.33 NASDAQ Composite Index 100.00 136.69 198.10 242.03 163.28 236.17 S&P U.S.

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