Seacoast Banking Posts Strong Q3 Earnings, Driven by Loan Growth

TL;DR

**SBCF is crushing it with loan growth and net interest income, but keep an eye on those merger costs.**

AI Summary

Seacoast Banking Corporation of Florida (SBCF) reported a robust financial performance for the three and nine months ended September 30, 2025. Net income for the three-month period increased by 18.9% to $36.467 million from $30.651 million in the prior year, while diluted EPS rose to $0.42 from $0.36. For the nine-month period, net income surged by 27.3% to $110.618 million from $86.901 million, with diluted EPS climbing to $1.28 from $1.02. Total interest income grew to $202.712 million for the quarter and $580.314 million for the nine months, driven by increased interest and fees on loans, which reached $161.913 million for the quarter. Net interest income after provision for credit losses improved significantly to $125.097 million for the quarter, up from $100.392 million. The company's total assets expanded to $16.676 billion as of September 30, 2025, from $15.176 billion at December 31, 2024, largely due to an increase in loans to $10.964 billion and available-for-sale securities to $3.212 billion. However, noninterest expense saw a substantial increase, primarily due to $10.808 million in merger-related charges for the quarter and $14.281 million for the nine months.

Why It Matters

This filing indicates strong growth for Seacoast Banking Corporation of Florida, particularly in net interest income and overall assets, which could signal a healthy regional banking environment in Florida. For investors, the 18.9% increase in quarterly net income and 27.3% rise in nine-month net income suggests effective management and potential for continued shareholder value. Employees may benefit from the company's expansion, though merger-related charges could imply integration challenges. Customers could see enhanced services and broader reach as the bank grows. In a competitive landscape, SBCF's asset growth to $16.676 billion positions it as a significant player, potentially challenging smaller regional banks.

Risk Assessment

Risk Level: medium — The company reported $10.808 million in merger-related charges for the three months ended September 30, 2025, and $14.281 million for the nine months, indicating ongoing integration costs and potential operational disruptions. Additionally, the provision for credit losses increased to $8.371 million for the quarter, up from $6.273 million in the prior year, and to $22.000 million for the nine months, up from $12.559 million, suggesting a potential increase in loan portfolio risk.

Analyst Insight

Investors should consider SBCF's strong net income and asset growth as positive indicators, but closely monitor the impact of merger-related charges and the rising provision for credit losses. A deeper dive into the specifics of the acquired companies and the quality of the loan portfolio would be prudent to assess long-term stability and profitability.

Financial Highlights

revenue

$378,849,000

total Assets

$16,676,000,000

net Income

$110,618,000

eps

$1.28

revenue Growth

+19.8%

Revenue Breakdown

Key Numbers

• $36.467M — Net Income (Q3 2025) (Increased 18.9% from $30.651M in Q3 2024)
• $110.618M — Net Income (9M 2025) (Increased 27.3% from $86.901M in 9M 2024)
• $0.42 — Diluted EPS (Q3 2025) (Up from $0.36 in Q3 2024)
• $1.28 — Diluted EPS (9M 2025) (Up from $1.02 in 9M 2024)
• $133.468M — Net Interest Income (Q3 2025) (Increased from $106.665M in Q3 2024)
• $10.808M — Merger-related charges (Q3 2025) (Significant noninterest expense)
• $16.676B — Total Assets (Sep 30, 2025) (Increased from $15.176B at Dec 31, 2024)
• $10.964B — Loans (Sep 30, 2025) (Increased from $10.299B at Dec 31, 2024)
• $8.371M — Provision for credit losses (Q3 2025) (Increased from $6.273M in Q3 2024)
• 97,828,149 — Common shares outstanding (As of October 31, 2025)

Key Players & Entities

• Seacoast Banking Corporation of Florida (company) — Registrant
• SEC (regulator) — Securities and Exchange Commission
• FASB (regulator) — Financial Accounting Standards Board
• $36.467 million (dollar_amount) — Net Income for three months ended September 30, 2025
• $30.651 million (dollar_amount) — Net Income for three months ended September 30, 2024
• $110.618 million (dollar_amount) — Net Income for nine months ended September 30, 2025
• $86.901 million (dollar_amount) — Net Income for nine months ended September 30, 2024
• $10.808 million (dollar_amount) — Merger-related charges for three months ended September 30, 2025
• $14.281 million (dollar_amount) — Merger-related charges for nine months ended September 30, 2025
• $16.676 billion (dollar_amount) — Total Assets as of September 30, 2025

FAQ

Risk Factors

• Interest Rate Sensitivity [medium — financial]: Changes in interest rates can impact net interest income and the fair value of financial instruments. For the three months ended September 30, 2025, total interest income increased by 15.5% year-over-year, while interest expense increased by 10.7%, indicating a positive but sensitive net interest margin.
• Merger and Integration Risks [high — operational]: The company incurred $10.808 million in merger-related charges for Q3 2025, indicating ongoing integration activities. These can lead to operational disruptions, unforeseen costs, and challenges in realizing expected synergies.
• Regulatory Compliance [medium — regulatory]: As a financial institution, SBCF is subject to extensive regulation. Changes in regulations, such as the new income tax disclosure requirements (ASU 2023-09), can increase compliance costs and operational complexity.
• Credit Risk Management [medium — financial]: The provision for credit losses increased to $8.371 million for Q3 2025 from $6.273 million in Q3 2024. While managed, a significant deterioration in loan portfolio quality could lead to higher losses.
• Cybersecurity Threats [high — operational]: Like all financial institutions, SBCF faces risks from cyberattacks and data breaches, which could lead to financial losses, reputational damage, and regulatory penalties.
• Economic Downturn [medium — market]: A general economic slowdown in Florida or nationally could negatively impact loan demand, increase credit defaults, and reduce fee income, affecting overall profitability.

Industry Context

The banking industry in Florida, particularly for regional players like Seacoast Banking Corporation, is characterized by a competitive landscape driven by population growth and economic development. Key trends include increasing demand for digital banking services, consolidation through mergers and acquisitions, and navigating a dynamic interest rate environment. Regional banks are focused on expanding their loan portfolios and fee-based income streams while managing operational costs and regulatory burdens.

Regulatory Implications

Seacoast Banking Corporation operates under stringent federal and state banking regulations. Compliance with capital adequacy, liquidity requirements, and consumer protection laws is paramount. The recent increase in merger-related charges highlights the strategic activity within the sector, which often involves significant regulatory scrutiny and approval processes.

What Investors Should Do

1. Monitor merger integration progress and associated costs.
2. Analyze the trend in net interest margin.
3. Evaluate the growth drivers of noninterest income.
4. Assess the impact of increased noninterest expenses.

Key Dates

• 2025-09-30: End of Q3 2025 — Reported strong net income growth of 18.9% and 27.3% for the quarter and nine months, respectively, with significant asset and loan portfolio expansion.
• 2025-10-31: Common Shares Outstanding Date — 97,828,149 common shares outstanding provide a basis for EPS calculations and market capitalization.
• 2024-12-31: End of Fiscal Year 2024 — Total assets were $15.176 billion, providing a baseline for the 9.9% asset growth observed by September 30, 2025.

Glossary

Net Interest Income after Provision for Credit Losses

The income generated from interest-earning assets minus interest expenses, after accounting for expected loan losses. (A key profitability metric for banks, showing the core earnings from lending activities.)

Diluted EPS

Earnings per share calculated by dividing net income by the total number of diluted common shares outstanding, including potential shares from options and convertible securities. (Indicates the profitability attributable to each share of common stock on a fully diluted basis.)

Available-for-sale (AFS) securities

Investments in debt or equity securities that are not classified as held-to-maturity or trading securities. They are reported at fair value, with unrealized gains and losses included in other comprehensive income. (Represents a significant portion of SBCF's assets ($3.212 billion) and impacts comprehensive income.)

Merger-related charges

Costs incurred specifically due to the process of merging with or acquiring another company, such as integration expenses, severance, and advisory fees. (A significant noninterest expense item impacting current period profitability, totaling $10.808 million for Q3 2025.)

BOLI income

Income generated from Bank-Owned Life Insurance policies, which can provide a stable, tax-advantaged income stream. (Contributed $3.875 million in Q3 2025, showing a notable increase.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, Seacoast Banking Corporation of Florida has demonstrated strong top-line growth, with total interest income up 15.5% for the quarter and 7.5% for the nine months. Net income has also seen substantial increases of 18.9% and 27.3% respectively. However, noninterest expenses have risen considerably, largely due to $10.808 million in merger-related charges in the current quarter, which impacted the overall expense structure compared to the previous year.

Key Financial Figures

• $0.10 — e Exchange Act). Yes No Common Stock, $0.10 Par Value – 97,828,149 shares outstandi

Filing Documents

• sbcf-20250930.htm (10-Q) — 3379KB
• sbcf3q09302025ex311.htm (EX-31.1) — 21KB
• sbcf3q09302025ex312.htm (EX-31.2) — 21KB
• sbcf3q09302025ex321.htm (EX-32.1) — 10KB
• sbcf3q09302025ex322.htm (EX-32.2) — 10KB
• 0000730708-25-000216.txt ( ) — 14822KB
• sbcf-20250930.xsd (EX-101.SCH) — 46KB
• sbcf-20250930_cal.xml (EX-101.CAL) — 137KB
• sbcf-20250930_def.xml (EX-101.DEF) — 324KB
• sbcf-20250930_lab.xml (EX-101.LAB) — 757KB
• sbcf-20250930_pre.xml (EX-101.PRE) — 552KB
• sbcf-20250930_htm.xml (XML) — 3521KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) Consolidated statements of income – Three and nine months ended September 30, 2025 and 2024 4 Consolidated statements of comprehensive income – Three and nine months ended September 30, 2025 and 2024 6 Consolidated balance sheets - September 30, 2025 and December 31, 2024 7 Consolidated statements of cash flows – Nine months ended September 30, 2025 and 2024 8 Consolidated statements of shareholders' equity - Three and nine months ended September 30, 2025 and 2024 10

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 12 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 35 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 57 Item 4.

Controls and Procedures

Controls and Procedures 58 Part II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 58 Item 1A.

Risk Factors

Risk Factors 58 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 59 Item 3. Defaults upon Senior Securities 59 Item 4. Mine Safety Disclosures 59 Item 5. Other Information 59 Item 6. Exhibits 59

SIGNATURES

SIGNATURES 61 2 Table of Contents Glossary of Defined Terms Term Definition Term Definition AFS Available-for-sale GAAP Accounting principles generally accepted in the United States of America ALCO Asset and Liability Management Committee Heartland Heartland Bancshares, Inc. Apollo Apollo Bancshares, Inc. HELOC Home equity line of credit ASC Accounting Standards Codification HTM Held-to-maturity ASU Accounting Standards Update LTV Loan-to-value BHC Bank Holding Company Moody's Moody's Analytics BOLI Bank owned life insurance NAV Net Asset Value CET1 Common equity tier 1 NPA Nonperforming asset CLO Collateralized loan obligation OCC Office of the Comptroller of the Currency CRA Community Reinvestment Act OREO Other real estate owned CRE Commercial Real Estate PCD Purchased credit deteriorated EPS Earnings per share REIT Real estate investment trust ESG Environmental, social and governance ROUA Right-of-use asset EVE Economic value of equity SBIC Small business investment companies FASB Financial Accounting Standards Board SEC Securities and Exchange Commission FDIC Federal Deposit Insurance Corporation SOFR Secured Overnight Financing Rate FHLB Federal Home Loan Bank TBM Troubled borrower modification FICO Fair Isaac Corporation (credit score) VBI Villages Bancorporation, Inc. FRB Federal Reserve Board XBRL eXtensible Business Reporting Language FTE Fully taxable equivalent 3 Table of Contents

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per share data) 2025 2024 2025 2024 Interest and fees on loans $ 161,913 $ 150,980 $ 469,628 $ 445,367 Interest and dividends on securities 36,019 25,997 97,946 72,612 Interest on interest bearing deposits and other investments 4,780 7,138 12,740 21,650 Total Interest Income 202,712 184,115 580,314 539,629 Interest on deposits 43,133 51,963 127,392 150,816 Interest on time certificates 16,341 19,002 46,434 54,051 Interest on borrowed money 9,770 6,485 27,639 18,595 Total Interest Expense 69,244 77,450 201,465 223,462 Net Interest Income 133,468 106,665 378,849 316,167 Provision for credit losses 8,371 6,273 22,000 12,559 Net Interest Income after Provision for Credit Losses 125,097 100,392 356,849 303,608 Noninterest income: Service charges on deposit accounts 6,194 5,412 16,914 15,714 Interchange income 2,008 1,911 5,710 5,739 Wealth management income 4,578 3,843 13,022 11,149 Mortgage banking fees 517 485 1,606 1,448 Insurance agency income 1,481 1,399 4,390 4,045 BOLI income 3,875 2,578 9,723 7,438 Other 6,006 7,864 19,760 20,455 24,659 23,492 71,125 65,988 Securities (losses) gains, net ( 841 ) 187 ( 606 ) 372 Total Noninterest Income 23,818 23,679 70,519 66,360 Noninterest expense: Salaries and wages 46,310 40,697 132,996 119,938 Employee benefits 7,387 6,955 24,354 21,705 Outsourced data processing costs 9,337 8,003 26,366 28,331 Occupancy 7,627 7,096 22,460 22,313 Furniture and equipment 2,233 2,060 6,486 6,027 Marketing 2,509 2,729 8,215 8,650 Legal and professional fees 1,674 2,708 6,485 6,841 FDIC assessments 2,414 1,882 6,716 6,171 Amortization of intangibles 6,005 6,002 16,445 18,297 OREO expense and net (gain) loss on sale ( 346 ) 491 ( 97 ) 356 Provision for credit losses on unfunded commitments 15

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Note 1 – Basis of Presentation Basis of Presentation: The accompanying unaudited consolidated financial statements of Seacoast Banking Corporation of Florida and its subsidiaries (the "Company") have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Certain prior period amounts have been reclassified to conform to the current period presentation. Operating results for the three and nine months ended September 30, 2025, are not necessarily indicative of the results that may be expected for the year ending December 31, 2025, or any other period. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Use of Estimates: The preparation of these consolidated financial statements requires management to make judgments in the application of certain accounting policies that involve significant estimates and assumptions. The Company has established policies and control procedures that are intended to ensure valuation methods are well-controlled and applied consistently from period to period. These estimates and assumptions, which may materially affect the reported amounts of certain assets, liabilities, revenues, and expenses, are based on information available as of the date of the financial statements, and changes in this information over time and the use of revised estimates and assumptions could materially affect amounts reported in subsequent financial statements. Specific areas, among others,

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