Seacoast Reports First Quarter 2026 Results

Annualized Organic Deposit Growth of 7%

Net Interest Margin Grew 17 Basis Points Quarter over Quarter to 3.83%

Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ:SBCF) today reported unaudited results of operations and other financial information for the first quarter of 2026.

First Quarter 2026 Highlights

• Net income of $31.9 million included a $39.5 million loss from a strategic repositioning of available-for-sale securities executed in January 2026. This action involved selling approximately $277.0 million in low-yielding securities and reinvesting the proceeds into higher-yielding positions, providing higher interest income going forward. This contributed to a 24 basis point increase in yield on securities during the quarter.

• Adjusted net income¹ of $67.8 million, or $0.62 per share, increased 42% from the prior quarter and 111% from the prior year quarter.

• Organic deposit growth of 7% annualized, including growth in noninterest-bearing deposits of 29% annualized. The cost of deposits declined 13 basis points to 1.54%.

• Net interest margin grew 17 basis points to 3.83%. Excluding accretion on acquired loans, net interest margin expanded 13 basis points to 3.57%.

• Repurchased 317,628 shares of common stock during the quarter, taking advantage of constructive market conditions and leveraging our strong capital position.

• Continued improvement in profitability metrics. Return on average assets and return on average tangible shareholders' equity were 0.62% and 8.51%, respectively. Adjusted return on average assets¹ was 1.31% and adjusted return on average tangible shareholders' equity¹ was 16.26%, compared to 0.89% and 11.96%, respectively, in the prior quarter.

Charles M. Shaffer, Seacoast's Chairman and CEO, said, "Our strategy to improve shareholder returns and deliver on our 2026 guidance remains on track. With excellent asset quality, a fortress balance sheet, meaningful capital flexibility, and the Villages Bancorporation, Inc. conversion approaching this summer, we are well positioned to unlock the full earnings power of the combined franchise. As we enter Seacoast's 100^th year, our strong first quarter results reaffirm our disciplined approach to growth, prudent balance sheet management, and continued focus on building franchise value and growing earnings over time."

Shaffer added, "I am extremely proud of our associates and their commitment to our customers and communities. We continue to grow our customer base across all our markets while executing on important product and technology initiatives that will enhance the client experience. Seacoast will exit 2026 stronger, more competitive, and well positioned to deliver sustainable long‑term shareholder value."

Financial Results

Income Statement

• Net revenues were $163.9 million in the first quarter of 2026, including a $39.5 million loss from the securities repositioning. Adjusted net revenues¹ were $205.1 million in the first quarter of 2026, an increase of $0.3 million compared to the prior quarter, and an increase of $64.2 million, or 46%, compared to the prior year quarter.

• Net interest income totaled $176.5 million in the first quarter of 2026, an increase of $1.8 million, or 1%, compared to the prior quarter, and an increase of $58.0 million, or 49%, compared to the first quarter of 2025. The increase compared to the prior quarter represents higher yields on the securities portfolio and lower deposit costs, partially offset by lower average invested cash balances. Securities income increased $3.4 million, or 6%, from the prior quarter, benefiting from the securities repositioning. Interest income on loans declined compared to the prior quarter by $1.7 million, with lower yields partially offset by higher purchase accounting accretion. Accretion on acquired loans was $12.1 million in the first quarter of 2026 compared to $10.6 million in the fourth quarter of 2025. Interest expense on deposits decreased $5.4 million, or 11%, compared to the prior quarter. Changes compared to the prior year quarter were largely the result of higher balances resulting from bank acquisitions in 2025.

• Net interest margin increased 17 basis points to 3.83% in the first quarter of 2026 compared to 3.66% in the fourth quarter of 2025, and increased 35 basis points compared to 3.48% in the first quarter of 2025. Excluding the effects of accretion on acquired loans, net interest margin expanded 13 basis points to 3.57% in the first quarter of 2026 compared to 3.44% in the fourth quarter of 2025, and increased 33 basis points compared to 3.24% in the first quarter of 2025. Loan yields were 5.96%, a decline of six basis points from the prior quarter, and an increase of six basis points from the prior year quarter. Securities yields increased to 4.37%, up 24 basis points from the prior quarter and up 49 basis points from the prior year quarter. The cost of deposits declined 13 basis points to 1.54% in the first quarter of 2026 compared to 1.67% in the prior quarter, and declined 39 basis points compared to 1.93% in the first quarter of 2025. The cost of funds declined nine basis points to 1.71% compared to the prior quarter, and declined 34 basis points compared to the prior year quarter.

• The provision for credit losses was $0.8 million in the first quarter of 2026. In the fourth quarter of 2025, the acquisition of Villages Bancorporation, Inc. ("VBI") resulted in an initial loan loss provision of $22.7 million. Allowance coverage of 1.39% at March 31, 2026 was lower by three basis points compared to December 31, 2025.

• Noninterest income was a net loss of $12.6 million in the first quarter of 2026 and included securities losses of $39.5 million from the repositioning of a portion of the available-for-sale securities portfolio. Adjusted noninterest income¹ of $26.9 million decreased $1.6 million, or 6%, compared to the prior quarter, and increased $4.9 million, or 22%, from the prior year quarter. Changes included:

• Service charges on deposits totaled $6.9 million, an increase of $0.4 million, or 7%, from the prior quarter resulting from growth in customer relationships. The increase of $1.7 million, or 33%, from the prior year quarter is primarily attributable to bank acquisitions in 2025 and growth in customer relationships.

• Wealth management income totaled $5.8 million, an increase of $0.2 million, or 4%, from the prior quarter and an increase of $1.5 million, or 36%, from the prior year quarter. Assets under management have grown 33% year-over-year. The wealth management division has continued to deliver significant growth, adding $125 million in new organic assets under management in the first quarter of 2026, partially offset by financial market volatility.

• Mortgage banking income totaled $2.2 million, a decrease of $0.9 million, or 30%, from the prior quarter, largely the result of volatility associated with the value of mortgage servicing rights acquired from VBI, which contributed $0.6 million to the decrease. Underlying mortgage volumes and pipelines remain strong.

• Insurance agency income totaled $1.8 million, an increase of $0.6 million, or 50%, from the prior quarter and an increase of $0.2 million, or 10%, from the prior year quarter. The increase from the prior quarter reflects typical seasonal contingency payments collected annually.

• Other income totaled $5.6 million, a decrease of $1.5 million, or 21%, compared to the prior quarter and a decrease of $0.7 million, or 11%, from the prior year quarter. The decreases primarily reflect lower gains on SBIC investments.

• Noninterest expense was $122.2 million in the first quarter of 2026, a decrease of $8.4 million, or 6%, compared to the prior quarter, and an increase of $31.6 million, or 35%, compared to the prior year quarter. In the first quarter of 2026, merger and integration costs totaled $8.5 million, compared to $18.1 million in the prior quarter and $1.1 million in the prior year quarter. Results in the first quarter of 2026 also included:

• Salaries and employee benefits totaled $62.6 million, an increase of $0.2 million, from the prior quarter and an increase of $11.5 million, or 23%, from the prior year quarter. The year over year increase reflects continued expansion of the footprint, including through bank acquisitions.

• Outsourced data processing costs totaled $12.0 million, an increase of $0.7 million, or 7%, from the prior quarter and an increase of $3.5 million, or 41%, from the prior year quarter. The increases reflect higher transaction volume and growth in customers, including from bank acquisitions.

• Occupancy costs totaled $9.2 million, a decrease of $0.1 million, or 1%, compared to the prior quarter and an increase of $1.9 million, or 26%, from the prior year quarter. The year over year increase is primarily the result of growth in the Company's footprint, including through bank acquisitions.

• Legal and professional fees totaled $3.2 million, an increase of $1.1 million, or 51%, compared to the prior quarter and an increase of $0.4 million, or 16%, from the prior year quarter. The increases are largely associated with the timing of various projects.

• Amortization of intangibles totaled $10.1 million, a decrease of $0.3 million, or 3%, from the prior quarter and an increase of $4.8 million, or 90%, from the prior year quarter. The increase from the prior year quarter reflects the addition of core deposit intangible assets from bank acquisitions in 2025.

• Other expense totaled $6.8 million, a decrease of $0.4 million, or 5%, compared to the prior quarter and a decrease of $0.3 million, or 4%, from the prior year quarter.

• The efficiency ratio improved to 59.47% in the first quarter of 2026, compared to 63.36% in the fourth quarter of 2025 and 64.05% in the first quarter of 2025. The adjusted efficiency ratio¹ was 55.31% in the first quarter of 2026, compared to 54.50% in the fourth quarter of 2025 and 63.30% in the prior year quarter. The Company continues to remain keenly focused on disciplined expense control, while making investments for growth.

Balance Sheet

• At March 31, 2026, the Company had total assets of $21.1 billion and total shareholders' equity of $2.7 billion. Book value per common share was $27.83 as of March 31, 2026, compared to $27.70 as of December 31, 2025, and $26.04 as of March 31, 2025. Tangible book value per share, treating all convertible preferred shares as common was $16.90 as of March 31, 2026, compared to $16.72 as of December 31, 2025, and $16.71 as of March 31, 2025.

• Debt securities totaled $5.6 billion as of March 31, 2026, a decrease of $105.3 million compared to December 31, 2025. Debt securities as of March 31, 2026 included approximately $5.1 billion in securities classified as available-for-sale and recorded at fair value. The unrealized loss on these securities is fully reflected in the value presented on the balance sheet. The portfolio also includes $576.2 million in securities classified as held-to-maturity with a fair value of $477.7 million.
  
  
  
  With higher capital in the VBI acquisition and lower dilution than originally modeled, along with constructive market conditions, in January 2026 the Company repositioned a portion of its available-for-sale securities portfolio. Securities with an average book yield of 1.9% were sold, resulting in a pre-tax loss of approximately $39.5 million. The proceeds of approximately $277.0 million were reinvested in primarily agency mortgage-backed securities with an average taxable equivalent book yield of 4.8%.

• Loans increased $13.4 million during the first quarter of 2026, totaling $12.6 billion as of March 31, 2026, with strong production partially offset by higher payoffs. The Company continues to exercise a disciplined approach to lending and benefit from the investments made in recent years to attract talent from large regional and national banks across its markets. The commercial pipeline totaled $1.0 billion as of March 31, 2026, representing an increase of $97.1 million, or 10%, from the prior quarter and an increase of $140.9 million, or 16%, from the prior‑year quarter, driven by continued relationship‑based origination activity. Loan payoffs totaled $530.5 million during the first quarter of 2026, representing an increase of $289.4 million, or 120%, from $241.1 million in the prior year quarter.

• Total deposits were $16.6 billion as of March 31, 2026, an increase of $381.6 million or 9.5% annualized, when compared to December 31, 2025. Excluding brokered deposits, organic deposit growth was 7% annualized.

• Noninterest-bearing demand deposits totaled $4.2 billion at March 31, 2026, an increase of 29% annualized from $3.9 billion at December 31, 2025.

• The cost of deposits declined 13 basis points to 1.54% from 1.67% in the prior quarter.

• At March 31, 2026, customer transaction account balances represented 50% of total deposits. The Company continues to benefit from a granular deposit franchise, with the top ten depositors representing approximately 3% of total deposits.

• Consumer deposits represent 49% of overall deposit funding with an average consumer customer balance of $27 thousand. Commercial deposits represent 51% of overall deposit funding with an average business customer balance of $122 thousand.

• Uninsured deposits represented only 33% of overall deposit balances as of March 31, 2026. 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 32% of total deposits. The Company has liquidity sources including cash and lines of credit with the Federal Reserve and Federal Home Loan Bank that represent 180% of uninsured deposits, and 184% of uninsured and uncollateralized deposits.

• Federal Home Loan Bank borrowings averaged $847.2 million at 4.03% for the first quarter of 2026, compared to average borrowings of $623.8 million at 4.27% in the fourth quarter of 2025.

Asset Quality

• The ratio of criticized and classified loans to total loans was 2.82% at March 31, 2026, 2.82% at December 31, 2025, and 2.41% at March 31, 2025.

• Nonperforming loans were $95.0 million at March 31, 2026, an increase of $23.0 million, or 30%, from $76.3 million as of December 31, 2025. The increase in nonaccrual loans during the first quarter of 2026 reflects the movement of two commercial credits to nonaccrual status that have collateral values well in excess of balances outstanding, and therefore, no credit loss is expected.

• Accruing past due loans were $28.2 million, or 0.22% of total loans, at March 31, 2026, compared to $33.2 million, or 0.26% of total loans, at December 31, 2025, and $17.2 million, or 0.15% of total loans, at March 31, 2025.

• Net charge-offs were $3.3 million in the first quarter of 2026, or 11 basis points annualized, compared to $0.9 million in the fourth quarter of 2025 and $7.0 million in the first quarter of 2025.

• The ratio of ACL to total loans was 1.39% at March 31, 2026, a decline of three basis points, compared to 1.42% at December 31, 2025, and 1.34% at March 31, 2025.

• Portfolio diversification, in terms of asset mix, industry, and loan type, has been a critical element of the Company's lending strategy. Exposure across industries and collateral types is broadly distributed.

• Construction and land development and commercial real estate loans remain well below regulatory guidance as of March 31, 2026 at 35% and 224% of total bank-level risk-based capital², respectively, compared to 34% and 227%, respectively, at December 31, 2025. On a consolidated basis and as of March 31, 2026, construction and land development and commercial real estate loans represent 33% and 211%, respectively, of total consolidated risk-based capital².

Capital and Liquidity

• The Company continues to operate with a fortress balance sheet, with a Tier 1 capital ratio at March 31, 2026 of 14.6%² compared to 14.5% at December 31, 2025, and 14.7% at March 31, 2025. The Total capital ratio was 16.0%², the Common Equity Tier 1 capital ratio was 11.7%², and the Tier 1 leverage ratio was 10.4%² at March 31, 2026. The Company is considered "well capitalized" based on applicable U.S. regulatory capital ratio requirements.

• Tangible equity to tangible assets was 9.24% at March 31, 2026, compared to 9.31% at December 31, 2025, and 9.58% at March 31, 2025. If all held-to-maturity securities were adjusted to fair value, the tangible equity ratio would have been 8.90% at March 31, 2026.

• At March 31, 2026, the Company had $808.4 million in cash, which increased compared to December 31, 2025 due to higher loan payoffs and increased customer deposits late in the quarter. In addition to cash, the Company had $9.1 billion in available borrowing capacity, including $5.1 billion in available collateralized lines of credit, $3.7 billion of unpledged debt securities available as collateral for potential additional borrowings, and available unsecured lines of credit of $348.0 million. These liquidity sources as of March 31, 2026, represented 184% of uninsured and uncollateralized deposits.

• During the first quarter of 2026, the Company repurchased 317,628 shares of its common stock under its share repurchase program.

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

² Estimated.

OTHER INFORMATION

Conference Call Information

Seacoast will host a conference call on April 29, 2026, at 10:00 a.m. (Eastern Time) to discuss the first quarter of 2026 earnings results and business trends. Investors may call in (toll-free) by dialing (800) 715-9871 (Conference ID: 4307965). Charts will be used during the conference call and may be accessed at Seacoast's website at www.SeacoastBanking.com by selecting "Presentations" under the heading "News/Events." Additionally, a recording of the call will be made available to individuals shortly after the conference call and can be accessed via a link at www.SeacoastBanking.com under the heading "Corporate Information." The recording will be available for one year.

About Seacoast Banking Corporation of Florida (NASDAQ:SBCF)

Seacoast Banking Corporation of Florida (NASDAQ:SBCF) is one of the largest community banks headquartered in Florida with approximately $21.1 billion in assets and $16.6 billion in deposits as of March 31, 2026. Seacoast provides integrated financial services including commercial and consumer banking, wealth management, and mortgage and insurance services to customers at 104 full-service branches across Florida and Georgia, and through advanced mobile and online banking solutions. Seacoast National Bank is the wholly-owned subsidiary bank of Seacoast Banking Corporation of Florida. 19 branches recently acquired in The Villages® community and in North Central Florida will operate under the name Citizens First Bank until Seacoast's system conversion takes place in the third quarter of 2026. For more information about Seacoast, visit www.SeacoastBanking.com.

Cautionary Notice Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning, and protections, of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements about future financial and operating results, cost savings, enhanced revenues, economic and seasonal conditions in the Company's markets, and improvements or impacts to reported earnings that may be realized from cost controls, tax law changes, conversion of preferred shares into common shares, new initiatives and for integration of banks (including Villages Bancorporation, Inc.) that the Company has acquired, or expects to acquire, as well as statements with respect to Seacoast's objectives, strategic plans, expectations and intentions and other statements that are not historical facts. Actual results may differ from those set forth in the forward-looking statements.

Forward-looking statements include statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates and intentions about future performance and involve known and unknown risks, uncertainties and other factors, which may be beyond the Company's control, and which may cause the actual results, performance or achievements of Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") or its wholly-owned banking subsidiary, Seacoast National Bank ("Seacoast Bank"), to be materially different from results, performance or achievements expressed or implied by such forward-looking statements. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

All statements other than statements of historical fact could be forward-looking statements. You can identify these forward-looking statements through the use of words such as "may", "will", "anticipate", "assume", "should", "support", "indicate", "would", "believe", "contemplate", "expect", "estimate", "continue", "further", "plan", "point to", "project", "could", "intend", "target" or other similar words and expressions of the future. Forward-looking statements also include statements relating to expectations regarding net interest income, net interest margin, loan growth, deposit growth and mix, credit quality, noninterest income and expense, capital levels and liquidity. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the impact of current and future economic and market conditions generally (including seasonality) and in the financial services industry, nationally and within Seacoast's primary market areas, including the effects of continued inflationary pressures, changes in interest rates, tariffs or trade wars (including reduced consumer spending), slowdowns in economic growth, and the potential for high unemployment rates, as well as the financial stress on borrowers and changes to customer and client behavior and credit risk as a result of the foregoing; potential impacts of adverse developments in the banking industry, or as encountered by other financial institutions that adversely affect Seacoast, and including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto (including increases in the cost of our deposit insurance assessments), the Company's ability to effectively manage its liquidity risk and any growth plans, and the availability of capital and funding; governmental monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve, as well as risks related to legislative, tax and regulatory changes, including those that impact the money supply and inflation; the risks of continued changes in interest rates on the level and composition of deposits (as well as the cost of, and competition for, deposits), loan demand, liquidity and the values of loan collateral, securities, and interest rate sensitive assets and liabilities; interest rate risks (including the impacts of interest rates on macroeconomic conditions, and on our net interest income), sensitivities and the shape of the yield curve; changes in accounting policies, rules and practices; changes in retail distribution strategies, customer preferences and behavior generally and as a result of economic factors, including heightened or persistent inflation; changes in borrower credit risks and payment behaviors, and changes in the availability and cost of credit and capital in the financial markets; changes in the prices, values and sales volumes of residential and commercial real estate, especially as they relate to the value of collateral supporting the Company's loans; the Company's concentration in commercial real estate loans and in real estate collateral in Florida; Seacoast's ability to comply with any regulatory requirements and the risk that the regulatory environment may not be conducive to or may prohibit or delay the consummation of future mergers and/or business combinations, may increase the length of time and amount of resources required to consummate such transactions, and may reduce the anticipated benefit; inaccuracies or other failures from the use of models, including the failure of assumptions and estimates (including with respect to our financial statements), as well as differences in, and changes to, economic, market and credit conditions; the impact on the valuation of Seacoast's investments due to market volatility or counterparty payment risk, as well as the effect of a decline in stock market prices on our fee income from our wealth management business; statutory and regulatory dividend restrictions; increases in regulatory capital requirements for banking organizations generally; the risks of mergers, acquisitions and divestitures, including Seacoast's ability to continue to identify acquisition targets, successfully acquire and integrate desirable financial institutions and realize expected revenues and revenue synergies, and limit deposit, customer and employee attrition; changes in technology or products that may be more difficult, costly, or less effective than anticipated; the timely development and acceptance of new products and services as well as risks (including reputational and litigation) attendant thereto, and perceived overall value of these products and services by users; risks associated with the development and use of artificial intelligence; the Company's ability to identify and address increased cybersecurity risks, including those impacting vendors and other third parties which may be exacerbated by developments in generative artificial intelligence; fraud or misconduct by internal or external parties, which Seacoast may not be able to prevent, detect or mitigate; inability of Seacoast's risk management framework to manage risks associated with the Company's business; dependence on key suppliers or vendors to obtain equipment or services for the business on acceptable terms; reduction in or the termination of Seacoast's ability to use the online- or mobile-based platform that is critical to the Company's business growth strategy; the effects of war or other conflicts, regime change, civil unrest, acts of terrorism, natural disasters, including hurricanes in the Company's footprint, health emergencies, epidemics or pandemics, or other catastrophic events that may affect general economic conditions and/or increase costs, including, but not limited to, property and casualty and other insurance costs; Seacoast's ability to maintain adequate internal controls over financial reporting; potential or actual claims, damages, penalties, fines, costs, unexpected outcomes and reputational damage resulting from new, existing, pending or future litigation, regulatory proceedings and enforcement actions; the risks that deferred tax assets could be reduced if estimates of future taxable income from the Company's operations and tax planning strategies are less than currently estimated, the results of tax audit findings, challenges to our tax positions, or adverse changes or interpretations of tax laws; the effects of competition (including the inability to grow, or attrition of deposits, customers, and employees) from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, non-bank financial technology providers, securities brokerage firms, insurance companies, private credit funds, money market and other mutual funds and other financial institutions; the failure of assumptions underlying the establishment of reserves for expected credit losses; impairment of our goodwill or other intangible assets, risks related to, and the costs associated with, environmental, social and governance matters ("ESG") and anti-ESG matters, including the scope and pace of related rulemaking activity and disclosure requirements and potential litigation and enforcement; legislative, regulatory or supervisory actions related to so-called "de-banking," including any new prohibitions, requirements or enforcement priorities that could affect customer relationships, compliance obligations, or operational practices; government actions or inactions, including a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the federal budget and economic policy, including the impact of tariffs and trade policies; the risk that balance sheet, revenue growth, and loan growth expectations may differ from actual results; and other factors and risks described herein and under "Risk Factors" in any of the Company's subsequent reports filed with the SEC and available on its website at www.sec.gov.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in the Company's annual report on Form 10-K for the year ended December 31, 2025 and in other periodic reports that the Company files with the SEC. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at www.sec.gov.