Seacoast Reports Second Quarter 2021 Results

Source: Nasdaq GlobeNewswire / 22 Jul 2021 16:45:35 America/New_York

Pipelines Expand Sequentially, in Line with a Flourishing Florida Economy

Record Quarter for Wealth Management, Interchange Income, and Growth in Transaction Account Balances

STUART, Fla., July 22, 2021 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the second quarter of 2021 of $31.4 million, or $0.56 per diluted share, a decrease of 7% compared to the first quarter of 2021, and an increase of 25% compared to the second quarter of 2020. Adjusted net income¹ for the second quarter of 2021 was $33.3 million, or $0.59 per diluted share, a decrease of 6% compared to the first quarter of 2021, and an increase of 31% compared to the second quarter of 2020. The ratio of tangible common equity to tangible assets was 10.43%, tangible book value per share increased to $17.08 and Tier 1 capital increased to 18.3%.

For the second quarter of 2021, return on average tangible assets was 1.48%, return on average tangible shareholders' equity was 13.88%, and the efficiency ratio was 54.93%, compared to 1.70%, 15.62%, and 53.21%, respectively, in the prior quarter, and 1.37%, 13.47%, and 50.11%, respectively, in the prior year quarter. Adjusted return on average tangible assets¹ in the second quarter of 2021 was 1.52%, adjusted return on average tangible shareholders' equity¹ was 14.27%, and the adjusted efficiency ratio¹ was 53.49%, compared to 1.75%, 16.01%, and 51.99%, respectively, in the prior quarter, and 1.33%, 13.09%, and 49.60%, respectively, in the prior year quarter.

Charles M. Shaffer, Seacoast's President and CEO, said, “Our investments over the last six months in commercial banking talent and technology are evident in the pipeline growth this quarter, and we continue to see strong economic expansion in our markets. Our transaction account balances have grown $860 million from the start of the year, a reflection of the strength of our customer franchise. While this significant growth in deposits is impacting our net interest margin, our low-cost funding base positions us for success as rates increase and as demand for credit continues to expand in the coming periods.”

Mr. Shaffer further commented, “We continue to steadily build shareholder value through consistent growth in our tangible book value per share, which has increased 13% year-over-year to $17.08, overcoming the challenge of the pandemic. The Company is committed to maintaining our fortress balance sheet, supported by a robust capital position and a strictly underwritten credit portfolio. Our prudent capital levels, low cost of funds, and ample liquidity support further disciplined organic growth and opportunistic acquisitions as we move forward.”

Financial Results

Income Statement

Net income was $31.4 million, or $0.56 per diluted share for the second quarter of 2021, compared to $33.7 million, or $0.60, for the prior quarter, and $25.1 million, or $0.47, for the prior year quarter. For the six months ended June 30, 2021, net income was $65.1 million, or $1.17 per diluted share, compared to $25.8 million, or $0.49, for the six months ended June 30, 2020. Adjusted net income¹ was $33.3 million, or $0.59 per diluted share for the second quarter of 2021, compared to $35.5 million, or $0.63, for the prior quarter, and $25.5 million, or $0.48, for the prior year quarter. For the six months ended June 30, 2021, adjusted net income¹ was $68.7 million, or $1.23 per diluted share, compared to $30.9 million, or $0.59, for the six months ended June 30, 2020.
Net revenues were $81.1 million in the second quarter of 2021, a decrease of $3.2 million, or 4%, compared to the prior quarter, and a decrease of $1.2 million, or 1%, compared to the prior year quarter. For the six months ended June 30, 2021, net revenues were $165.4 million, an increase of $5.3 million, or 3%, compared to the six months ended June 30, 2020. Adjusted revenues¹ were $81.2 million in the second quarter of 2021, a decrease of $3.2 million, or 4%, from the prior quarter, and an increase of $0.1 million, or 0.2%, compared to the prior year quarter. For the six months ended June 30, 2021 net revenues were $165.6 million, an increase of $6.7 million, or 4%, compared to the six months ended June 30, 2020.
Net interest income totaled $65.8 million in the second quarter of 2021, a decrease of $0.8 million, or 1%, from the prior quarter reflecting lower income from Paycheck Protection Program (“PPP”) loans, partially offset by lower interest expense on deposits. During the second quarter of 2021, net interest income included $5.1 million in interest and fees earned on PPP loans compared to $6.9 million in the first quarter of 2021. For the six months ended June 30, 2021, net interest income was $132.4 million, an increase of $2.0 million, or 2%, compared to the six months ended June 30, 2020. As of June 30, 2021, remaining deferred fees on PPP loans total $10.6 million, which will be recognized over the loans' remaining contractual maturity or earlier, as loans are forgiven.
Net interest margin declined from 3.51% in the first quarter of 2021 to 3.23% in the second quarter of 2021, largely as the result of significant growth in transaction account deposit balances during the second quarter. This increase in funding occurred across our customer base at near-zero rates, as new clients were onboarded and existing clients continue to see expansion in cash balances. The resulting increase in liquidity negatively impacted net interest margin by 23 basis points. Excluding this increase in liquidity, the remaining decline in net interest margin is attributed to lower PPP interest and fees as a result of declining balances as PPP loans are forgiven. Excess liquidity has been partially invested through securities purchases; however, cash deployment remains disciplined and prudent, with careful reinvestment of liquidity over time. Securities yields declined by only two basis points to 1.63% in the second quarter of 2021. Non-PPP loan yields declined by only one basis point to 4.36% during the second quarter of 2021. Offsetting and favorable was the decline in the cost of deposits from 13 basis points in the first quarter of 2021 to eight basis points in the second quarter of 2021. The effect on net interest margin of accretion of purchase discounts on acquired loans was an increase of 14 basis points in the second quarter compared to an increase of 15 basis points in the prior quarter. The effect on net interest margin of interest and fees on PPP loans was an increase of six basis points in the second quarter and an increase of 11 basis points in the prior quarter.
Noninterest income totaled $15.3 million in the second quarter of 2021, a decrease of $2.3 million, or 13%, compared to the prior quarter, and an increase of $0.3 million, or 2%, compared to the prior year quarter. For the six months ended June 30, 2021, noninterest income was $33.0 million, an increase of $3.3 million, or 11%, compared to the six months ended June 30, 2020. Results for the second quarter of 2021 included the following:
- Interchange revenue reached a new record of $4.1 million, compared to $3.8 million in the prior quarter, reflecting higher transactional volume and higher per-card spending, both indicative of the strength and confidence in our consumer and small business franchise.
- Wealth management income increased to a record $2.4 million in the current quarter, compared to $2.3 million in the first quarter of 2021. The team continues to deliver strong growth in assets under management, which increased $133 million quarter-over-quarter, bringing total assets under management to $1.2 billion. The team is successfully winning business with commercial relationships and high net worth families across the Company’s footprint.
- Mortgage banking fees were $3.0 million, compared to $4.2 million in the prior quarter, due to slowing refinance activity and low housing inventory levels.
- Other income declined by $1.5 million in the second quarter of 2021, reflecting the impact in the first quarter of 2021 of $1.7 million in income associated with the resolution of contingencies on two loans acquired in 2017.
The provision for credit losses was a net benefit of $4.9 million in the second quarter of 2021, compared to a net benefit of $5.7 million in the prior quarter, and provision expense of $7.6 million in the prior year quarter. The ratio of allowance for credit losses to total loans declined to 1.49% at June 30, 2021, compared to 1.53% at March 31, 2021 and 1.58% at June 30, 2020. Excluding PPP loans, the ratio declined to 1.60% at June 30, 2021, compared to 1.71% at March 31, 2021 and 1.76% at June 30, 2020, reflecting a continued improvement in the economic outlook.
Noninterest expense was $45.8 million in the second quarter of 2021, a decrease of $0.3 million, or 1%, compared to the prior quarter, and an increase of $3.4 million, or 8%, compared to the prior year quarter. For the six months ended June 30, 2021, noninterest expense was $91.9 million, an increase of $1.7 million, or 2%, compared to the six months ended June 30, 2020. Changes from the first quarter of 2021 consisted of the following:
- Salaries and wages increased $1.6 million, or 7%, to $23.0 million. In the first quarter of 2021, PPP loan production resulted in higher deferrals of related salary costs, impacting the first quarter by $1.9 million. This deferral slowed in the second quarter, as the PPP program ended.
- Employee benefits decreased $1.0 million, or 21%, with the prior quarter reflecting the seasonal impact of higher payroll taxes and 401(k) plan contributions.
- Occupancy expenses decreased $0.5 million, or 13%. Three branch consolidations were completed in the first quarter of 2021, resulting in associated charges in the first quarter of $0.3 million.
- Legal and professional fees decreased by $0.4 million, or 15%, compared to the first quarter, reflecting lower legal fees, including a $0.1 million decrease in merger-related costs.
Seacoast recorded $8.8 million of income tax expense in the second quarter of 2021, compared to $10.2 million in the prior quarter and $7.2 million in the second quarter of 2020. A tax benefit related to stock-based compensation totaled $0.6 million in the second quarter of 2021, compared to a tax benefit of $0.1 million in the first quarter of 2021, and tax expense of $0.2 million in the second quarter of 2020.
The ratio of net adjusted noninterest expense¹to average tangible assets was 1.98% in the second quarter of 2021, compared to 2.16% in the prior quarter and 2.11% in the second quarter of 2020.
The efficiency ratio was 54.93% compared to 53.21% in the prior quarter and 50.11% in the prior year quarter. The adjusted efficiency ratio¹ was 53.49% compared to 51.99% in the prior quarter and 49.60% in the prior year quarter. The Company remains committed to efficiency through disciplined, proactive management of its cost structure.

Balance Sheet

At June 30, 2021, the Company had total assets of $9.3 billion and total shareholders' equity of $1.2 billion. Book value per share increased to $21.33 from $20.89 on March 31, 2021, and $19.45 on June 30, 2020. Tangible book value per share of $17.08 on June 30, 2021 has increased 11% on an annualized basis compared to March 31, 2021, and 13% compared to June 30, 2020.
Debt securities totaled $1.8 billion on June 30, 2021, an increase of $252.5 million, or 16%, compared to March 31, 2021. Purchases during the quarter were primarily in agency-issued collateralized mortgage obligations and had an average yield of 1.39% and a duration of 3.1 years. The Company continues to take a prudent and disciplined approach to reinvesting liquidity.
Loans totaled $5.4 billion on June 30, 2021, a decrease of $224.4 million, or 4%, compared to March 31, 2021. The decrease includes $243.0 million in PPP loan forgiveness during the second quarter of 2021. Removing the impact of declines in PPP loans outstanding, loans declined only $6.9 million from the prior quarter.
Loan originations, excluding PPP, were $456.5 million in the second quarter of 2021, compared to $436.0 million in the first quarter of 2021, an increase of 5%.
- Commercial originations during the second quarter of 2021 were $193.0 million, compared to $204.3 million in the first quarter of 2021 and $106.9 million in the second quarter of 2020.
- Consumer originations in the second quarter of 2021 increased to $63.7 million from $46.7 million in the first quarter of 2021, and $58.0 million in the second quarter of 2020.
- Residential loans originated for sale in the secondary market totaled $120.1 million in the second quarter of 2021, compared to $138.3 million in the first quarter of 2021, and $122.5 million in the second quarter of 2020. While we expect to continue to see the benefit of the inflow of new residents and businesses into Florida, refinance activity has slowed from the peaks seen in the last several quarters, and housing inventory is low.
- Closed residential loans retained in the portfolio totaled $79.7 million in the second quarter of 2021, compared to $46.6 million in the first quarter of 2021, and $23.5 million in the second quarter of 2020.
Pipelines (loans in underwriting and approval or approved and not yet closed) totaled $468.5 million on June 30, 2021, an increase of 8% from March 31, 2021 and an increase of 83% from June 30, 2020.
- Commercial pipelines were $322.0 million as of June 30, 2021, an increase of 34% from $240.9 million at March 31, 2021 and an increase of 175% from $117.0 million at June 30, 2020. With significant economic growth in the State of Florida and the addition of top talent across our footprint, we expect production to increase in the second half of 2021.
- Consumer pipelines were $31.7 million as of June 30, 2021, compared to $28.1 million at March 31, 2021 and $30.6 million at June 30, 2020.
- Residential saleable pipelines were $60.6 million as of June 30, 2021, compared to $92.1 million at March 31, 2021 and $94.7 million at June 30, 2020. Retained residential pipelines were $54.1 million as of June 30, 2021, compared to $72.4 million at March 31, 2021 and $13.2 million at June 30, 2020.
Total deposits were $7.8 billion as of June 30, 2021, an increase of $450.7 million, or 6%, compared to March 31, 2021.
- The overall cost of deposits declined to 8 basis points in the second quarter of 2021 from 13 basis points in the prior quarter.
- Total transaction account balances increased $382.9 million, or 9%, quarter-over-quarter, and at June 30, 2021 represent 60% of overall deposit funding. The increase in funding occurred across our customer base at near-zero rates, as new clients were onboarded and existing clients continue to see expansion in cash balances.
- Interest-bearing deposits (interest-bearing demand, savings, and money market deposits) increased $295.1 million, or 7%, quarter-over-quarter to $4.4 billion, noninterest-bearing demand deposits increased $266.9 million, or 10%, to $3.0 billion, and CDs (excluding brokered) declined $37.8 million, or 7%, to $481.7 million.
- As of June 30, 2021, deposits per banking center were $163 million, compared to $154 million at March 31, 2021 and $133 million on June 30, 2020.

Asset Quality

Nonperforming loans decreased by $2.4 million to $32.9 million at June 30, 2021. Nonperforming loans to total loans outstanding were 0.61% at June 30, 2021, 0.62% at March 31, 2021, and 0.52% at June 30, 2020.
Nonperforming assets to total assets were 0.49% at June 30, 2021, 0.58% at March 31, 2021, and 0.57% at June 30, 2020.
The ratio of allowance for credit losses to total loans was 1.49% at June 30, 2021, 1.53% at March 31, 2021, and 1.58% at June 30, 2020. Excluding PPP loans, the ratio of allowance for credit losses to total loans at June 30, 2021, was 1.60%, compared to 1.71% at March 31, 2021 and 1.76% at June 30, 2020. The decline in coverage reflects continued improvement in the economic outlook.
Net charge-offs were $0.7 million, or 0.05%, of average loans for the second quarter of 2021 compared to $0.4 million, or 0.03%, of average loans in the first quarter of 2021 and $1.8 million, or 0.12%, of average loans in the second quarter of 2020. Net charge-offs for the four most recent quarters averaged 0.10%.
Portfolio diversification, in terms of asset mix, industry, and loan type, has been a critical element of the Company's lending strategy. Exposure across industries and collateral types is broadly distributed. Excluding PPP loans, Seacoast's average commercial loan size is $420 thousand, reflecting an ability to maintain granularity within the overall loan portfolio.
Construction and land development and commercial real estate loans remain well below regulatory guidance at 24% and 164% of total bank-level risk-based capital, respectively, compared to 23% and 168% respectively, in the first quarter of 2021. On a consolidated basis, construction and land development and commercial real estate loans represent 22% and 150%, respectively, of total consolidated risk-based capital.

Capital and Liquidity

The tier 1 capital ratio increased to 18.3% from 18.1% at March 31, 2021, and 16.4% at June 30, 2020. The total capital ratio was 19.2% and the tier 1 leverage ratio was 11.7% at June 30, 2021.
Cash and cash equivalents at June 30, 2021 totaled $1.4 billion, an increase of $469.5 million, or 48%, from March 31, 2021, largely the result of increased deposit balances during the quarter.
Tangible common equity to tangible assets was 10.43% at June 30, 2021, compared to 10.71% at March 31, 2021 and 10.19% at June 30, 2020. The ratio declined quarter-over-quarter largely as a result of a continued increase in liquidity on the balance sheet. The Company will deploy this liquidity in a disciplined and prudent manner.
At June 30, 2021, the Company had available unsecured lines of credit of $135.0 million and lines of credit under lendable collateral value of $1.7 billion. Additionally, $1.5 billion of debt securities and $688.4 million of residential and commercial real estate loans are available as collateral for potential borrowings.

FINANCIAL HIGHLIGHTS
(Amounts in thousands except per share data)	(Unaudited)
	Quarterly Trends

	2Q'21			1Q'21			4Q'20			3Q'20			2Q'20
Selected Balance Sheet Data:
Total Assets	$	9,316,833		$	8,811,820		$	8,342,392		$	8,287,840		$	8,084,013
Gross Loans	5,437,049			5,661,492			5,735,349			5,858,029			5,772,052
Total Deposits	7,836,436			7,385,749			6,932,561			6,914,843			6,666,783

Performance Measures:
Net Income	$	31,410		$	33,719		$	29,347		$	22,628		$	25,080
Net Interest Margin	3.23		%	3.51		%	3.59		%	3.40		%	3.70		%
Average Diluted Shares Outstanding	55,901			55,992			55,739			54,301			53,308
Diluted Earnings Per Share (EPS)	$	0.56		$	0.60		$	0.53		$	0.42		$	0.47
Return on (annualized):
Average Assets (ROA)	1.40		%	1.61		%	1.39		%	1.11		%	1.27		%
Average Tangible Assets (ROTA)²	1.48			1.70			1.49			1.20			1.37
Average Tangible Common Equity (ROTCE)²	13.88			15.62			13.87			11.35			13.47
Tangible Common Equity to Tangible Assets²	10.43			10.71			11.01			10.67			10.19
Tangible Book Value Per Share²	$	17.08		$	16.62		$	16.16		$	15.57		$	15.11
Efficiency Ratio	54.93		%	53.21		%	48.23		%	61.65		%	50.11		%

Adjusted Operating Measures¹:
Adjusted Net Income	$	33,251		$	35,497		$	30,700		$	27,336		$	25,452
Adjusted Diluted EPS	0.59			0.63			0.55			0.50			0.48
Adjusted ROTA²	1.52		%	1.75		%	1.50		%	1.38		%	1.33		%
Adjusted ROTCE²	14.27			16.01			14.00			13.06			13.09
Adjusted Efficiency Ratio	53.49			51.99			48.75			54.82			49.60
Net Adjusted Noninterest Expense as a Percent of Average Tangible Assets²	1.98			2.16			2.00			2.24			2.11

Other Data:
Market capitalization³	$	1,893,141		$	2,003,866		$	1,626,913		$	994,690		$	1,081,009
Full-time equivalent employees	946			953			965			968			924
Number of ATMs	75			75			77			77			76
Full-service banking offices	48			48			51			51			50
Registered online users	129,568			126,352			123,615			121,620			117,273
Registered mobile devices	122,815			117,959			115,129			110,241			108,062
¹Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP.
²The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.
³Common shares outstanding multiplied by closing bid price on last day of each period.

Second Quarter Strategic Highlights

Legacy Bank of Florida Acquisition

Seacoast’s balanced growth strategy, combining organic growth with value-creating acquisitions, continues to benefit shareholders and expand the franchise across Florida. The upcoming acquisition of Legacy Bank of Florida, which is expected to close in the third quarter of 2021, will add experienced bankers in the rapidly growing South Florida market, and should further support disciplined, profitable growth for the Company.

Capitalizing on Seacoast’s Early Commitment to Digital Transformation

Seacoast and its customers are benefiting from the Company’s automated online PPP forgiveness solution, which streamlines the process for clients while integrating with Seacoast’s existing technology infrastructure. In the second quarter of 2021, Seacoast processed $243 million in PPP loan forgiveness.
The Company completed a significant investment in its nCino digital commercial loan origination platform. This investment will accelerate speed to market, provide a quicker renewal process, and provide a streamlined workflow for bankers and underwriters.

Scaling and Evolving Our Culture

Seacoast recently announced the continued expansion of its commercial banking leadership team with three new additions, each bringing significant market expertise and has been successful in developing high performing commercial banking teams.
- James Norton joined Seacoast as executive vice president and commercial real estate executive. James brings 20 years of experience in commercial real estate to Seacoast Bank. Most recently, James served as a real estate banking director covering the Mid-Atlantic market at JPMorgan Chase. He previously served in executive positions with the BB&T Corporation, IronStone Bank, and SunTrust Bank in the Southeast region. Based out of Tampa, James led the expansion of BB&T’s commercial real estate business in Florida prior to relocating to the Mid-Atlantic region.
- Chris Rolle joined Seacoast as president of the West Florida region, covering the west coast from the Tampa Bay area to Naples-Ft. Myers. Rolle is a former executive at Synovus Bank, Florida Community Bank, and the BB&T Corporation covering both the Tampa-St. Petersburg and Orlando MSAs.
- Robert Hursh joined Seacoast as market president for Pinellas County (St. Petersburg/Clearwater). Robert, a Pinellas County native, has more than 20 years of experience in leading commercial banking teams in the Tampa-St. Petersburg MSA, most recently as senior vice president with Synovus Bank.
The Company also added two new operational leaders to support growth.
- Anthony Cavallaro joined Seacoast as senior vice president and operations executive and brings more than 25 years of experience, having led operations and risk management teams at Civista Bank and KeyBank.
- Robert Walla joined Seacoast as senior vice president and director of loan operations. Bob brings 30 years of operations leadership, most recently at First Midwest Bank in Chicago, Illinois.
During the second quarter, Seacoast Bank was named among the Orlando Business Journal's 2021 Best Places to Work. This recognition acknowledges Seacoast’s commitment to employees’ well-being, especially throughout the pandemic, as well as the Company’s numerous diversity and inclusion initiatives.

Seacoast was also recently recognized as part of the Human Rights Campaign Foundation’s 2021 Corporate Equality Index as a Best Place to Work for LGBTQ Equality, earning a top score of 100%.

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

OTHER INFORMATION

Conference Call Information
Seacoast will host a conference call on July 23, 2021 at 10:00 a.m. (Eastern Time) to discuss the second quarter 2021 earnings results and business trends. Investors may call in (toll-free) by dialing (800) 774-6070 (passcode: 7461 099#; host: Charles Shaffer). Charts will be used during the conference call and may be accessed at Seacoast's website at www.SeacoastBanking.com by selecting "Presentations" under the heading "News/Events." A replay of the call will be available for one month, beginning late afternoon on July 23, 2021, and can be accessed via a link at www.SeacoastBanking.com under the heading “Corporate Information,” using the passcode 50182591.

Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast's website at www.SeacoastBanking.com. The link is located in the subsection "Presentations" under the heading “Corporate Information.” Beginning late afternoon on July 23, 2021, an archived version of the webcast can be accessed from this same subsection of the website. The archived webcast will be available for one year.

About Seacoast Banking Corporation of Florida (NASDAQ: SBCF)
Seacoast Banking Corporation of Florida is one of the largest community banks headquartered in Florida with approximately $9.3 billion in assets and $7.8 billion in deposits as of June 30, 2021. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, and 48 traditional branches of its locally-branded, wholly-owned subsidiary bank, Seacoast National Bank. Offices stretch from Fort Lauderdale, Boca Raton and West Palm Beach north through the Daytona Beach area, into Orlando and Central Florida and the adjacent Tampa market, and west to Okeechobee and surrounding counties. More information about the Company is available at www.SeacoastBanking.com.

Additional Information
Seacoast has filed a registration statement on Form S-4, as amended, with the United States Securities and Exchange Commission (the "SEC") in connection with the proposed merger of Legacy Bank of Florida ("Legacy Bank") with and into Seacoast Bank. The registration statement in connection with the Legacy Bank merger includes a proxy statement of Legacy Bank and a prospectus of Seacoast. A definitive proxy statement/prospectus has been mailed to shareholders of Legacy Bank. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. WE URGE INVESTORS TO READ THE PROXY STATEMENTS/PROSPECTUSES AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE MERGER OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENTS/PROSPECTUSES BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.

Investors may obtain (when available) these documents free of charge at the SEC’s website (www.sec.gov). In addition, documents filed with the SEC by Seacoast will be available free of charge by contacting Investor Relations at (772) 288-6085.

Legacy Bank, its directors, and executive officers and other members of management and employees may be considered participants in the solicitation of proxies in connection with the proposed merger of Legacy Bank with and into Seacoast Bank. Information regarding the participants in the proxy solicitation of Legacy Bank and a description of its direct and indirect interests, by security holdings or otherwise, is contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC.

Cautionary Notice Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning, and protections, of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, loan growth, cost savings, enhanced revenues, economic and seasonal conditions in our markets, and improvements to reported earnings that may be realized from cost controls, tax law changes, new initiatives and for integration of banks that we have acquired, or expect to acquire, including Legacy Bank of Florida, as well as statements with respect to Seacoast's objectives, strategic plans, expectations and intentions and other statements that are not historical facts, any of which may be impacted by the COVID-19 pandemic and any variants thereof and related effects on the U.S. economy. Actual results may differ from those set forth in the forward-looking statements.

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

All statements other than statements of historical fact could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may", "will", "anticipate", "assume", "should", "support", "indicate", "would", "believe", "contemplate", "expect", "estimate", "continue", "further", "plan", "point to", "project", "could", "intend", "target" or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the effects of future economic and market conditions, including seasonality and the adverse impact of COVID-19 (economic and otherwise); governmental monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve, as well as legislative, tax and regulatory changes, including those that impact the money supply and inflation; changes in accounting policies, rules and practices, including the impact of the adoption of CECL; our participation in the Paycheck Protection Program ("PPP"); the risks of changes in interest rates on the level and composition of deposits, loan demand, liquidity and the values of loan collateral, securities, and interest sensitive assets and liabilities; interest rate risks, sensitivities and the shape of the yield curve; uncertainty related to the impact of LIBOR calculations on securities and loans; changes in borrower credit risks and payment behaviors; changing retail distribution strategies, customer preferences and behavior; changes in the availability and cost of credit and capital in the financial markets; changes in the prices, values and sales volumes of residential and commercial real estate; our ability to comply with any regulatory requirements; the effects of problems encountered by other financial institutions that adversely affect us or the banking industry; our concentration in commercial real estate loans; inaccuracies or other failures from the use of models, including the failure of assumptions and estimates, as well as differences in, and changes to, economic, market and credit conditions; the impact on the valuation of our investments due to market volatility or counterparty payment risk; statutory and regulatory dividend restrictions; increases in regulatory capital requirements for banking organizations generally; the risks of mergers, acquisitions and divestitures, including our ability to continue to identify acquisition targets and successfully acquire desirable financial institutions; changes in technology or products that may be more difficult, costly, or less effective than anticipated; our ability to identify and address increased cybersecurity risks; inability of our risk management framework to manage risks associated with our business; dependence on key suppliers or vendors to obtain equipment or services for our business on acceptable terms; reduction in or the termination of our ability to use the mobile-based platform that is critical to our business growth strategy; the effects of war or other conflicts, acts of terrorism, natural disasters, health emergencies, epidemics or pandemics, or other catastrophic events that may affect general economic conditions; unexpected outcomes of and the costs associated with, existing or new litigation involving us; our ability to maintain adequate internal controls over financial reporting; potential claims, damages, penalties, fines and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions; the risks that our deferred tax assets could be reduced if estimates of future taxable income from our operations and tax planning strategies are less than currently estimated and sales of our capital stock could trigger a reduction in the amount of net operating loss carryforwards that we may be able to utilize for income tax purposes; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market areas and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the Internet; and the failure of assumptions underlying the establishment of reserves for possible loan losses.

The risks relating to the Legacy Bank of Florida proposed merger include, without limitation: the timing to consummate the proposed merger; the risk that a condition to closing of the proposed merger may not be satisfied; the risk that the merger is not completed at all; the diversion of management time on issues related to the proposed merger; unexpected transaction costs, including the costs of integrating operations; the risks that the businesses will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; the potential failure to fully or timely realize expected revenues and revenue synergies, including as the result of revenues following the merger being lower than expected; the risk of deposit and customer attrition; any changes in deposit mix; unexpected operating and other costs, which may differ or change from expectation; the risk of customer and employee loss and business disruptions, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures on solicitations of customers by competitors; as well as difficulties and risks inherent with entering new markets.

Actual results and capital and other financial conditions may differ materially from those included in these statements due to a variety of factors. These factors include, among others described above, macroeconomic and other challenges and uncertainties related to the COVID-19 pandemic, such as the duration and severity of the impact on public health, the U.S. and global economies, financial markets and consumer and corporate customers and clients, including economic activity and employment, as well as the various actions taken in response by governments, central banks and others, including Seacoast, and the precautionary statements included in this release.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2020 and quarterly report on Form 10-Q for the quarter ended March 31, 2021 under "Special Cautionary Notice Regarding Forward-looking Statements" and "Risk Factors", and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at www.sec.gov.

FINANCIAL HIGHLIGHTS							(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	Quarterly Trends																Six Months Ended

(Amounts in thousands, except ratios and per share data)	2Q'21			1Q'21				4Q'20			3Q'20			2Q'20			2Q'21			2Q'20

Summary of Earnings
Net income	$	31,410		$	33,719			$	29,347		$	22,628		$	25,080		$	65,129		$	25,789
Adjusted net income¹	33,251			35,497				30,700			27,336			25,452			68,748			30,914
Net interest income²	65,933			66,741				68,903			63,621			67,388			132,674			130,679
Net interest margin^2,3	3.23		%	3.51		%		3.59		%	3.40		%	3.70		%	3.37		%	3.81		%

Performance Ratios
Return on average assets-GAAP basis³	1.40		%	1.61		%		1.39		%	1.11		%	1.27		%	1.50		%	0.69		%
Return on average tangible assets-GAAP basis^3,4	1.48			1.70				1.49			1.20			1.37			1.58			0.78
Adjusted return on average tangible assets^1,3,4	1.52			1.75				1.50			1.38			1.33			1.63			0.86
Net adjusted noninterest expense to average tangible assets^1,3,4	1.98			2.16				2.00			2.24			2.11			2.07			2.28

Return on average shareholders' equity-GAAP basis³	10.76			12.03				10.51			8.48			9.96			11.39			5.17
Return on average tangible common equity-GAAP basis^3,4	13.88			15.62				13.87			11.35			13.47			14.73			7.27
Adjusted return on average tangible common equity^1,3,4	14.27			16.01				14.00			13.06			13.09			15.12			8.02
Efficiency ratio⁵	54.93			53.21				48.23			61.65			50.11			54.05			54.88
Adjusted efficiency ratio¹	53.49			51.99				48.75			54.82			49.60			52.72			51.53
Noninterest income to total revenue (excluding securities gains/losses)	18.94			21.07				17.85			21.06			17.00			20.03			17.90
Tangible common equity to tangible assets⁴	10.43			10.71				11.01			10.67			10.19			10.43			10.19
Average loan-to-deposit ratio	74.13			81.39				84.48			87.83			88.48			77.62			90.59
End of period loan-to-deposit ratio	69.93			77.48				83.72			85.77			87.40			69.93			87.40

Per Share Data
Net income diluted-GAAP basis	$	0.56		$	0.60			$	0.53		$	0.42		$	0.47		$	1.17		$	0.49
Net income basic-GAAP basis	0.57			0.61				0.53			0.42			0.47			1.18			0.49
Adjusted earnings¹	0.59			0.63				0.55			0.50			0.48			1.23			0.59

Book value per share common	21.33			20.89				20.46			19.91			19.45			21.33			19.45
Tangible book value per share	17.08			16.62				16.16			15.57			15.11			17.08			15.11
Cash dividends declared	0.13			—				—			—			—			0.13			—


¹Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP.
²Calculated on a fully taxable equivalent basis using amortized cost.
³These ratios are stated on an annualized basis and are not necessarily indicative of future periods.
⁴The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.
⁵Defined as noninterest expense less amortization of intangibles and gains, losses, and expenses on foreclosed properties divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains and losses).

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

CONDENSED CONSOLIDATED STATEMENTS OF INCOME							(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	Quarterly Trends															Six Months Ended

(Amounts in thousands, except per share data)	2Q'21			1Q'21				4Q'20			3Q'20			2Q'20		2Q'21			2Q'20

Interest on securities:
Taxable	$	6,559		$	6,298			$	6,477		$	6,972		$	7,573	$	12,857		$	16,269
Nontaxable	147			148				86			125			121		295			243
Fees on PPP loans	3,877			5,390				3,603			161			4,010		9,267			4,010
Interest on PPP loans	1,251			1,496				1,585			1,558			1,058		2,747			1,058
Interest and fees on loans - excluding PPP loans	55,220			55,412				60,407			58,768			59,776		110,632			123,216
Interest on federal funds sold and other investments	709			586				523			556			684		1,295			1,418
Total Interest Income	67,763			69,330				72,681			68,140			73,222		137,093			146,214

Interest on deposits	980			1,065				1,228			1,299			1,203		2,045			4,393
Interest on time certificates	524			1,187				2,104			2,673			3,820		1,711			8,588
Interest on borrowed money	457			468				558			665			927		925			2,784
Total Interest Expense	1,961			2,720				3,890			4,637			5,950		4,681			15,765

Net Interest Income	65,802			66,610				68,791			63,503			67,272		132,412			130,449
Provision for credit losses	(4,855		)	(5,715		)		1,900			(845		)	7,611		(10,570		)	37,124
Net Interest Income After Provision for Credit Losses	70,657			72,325				66,891			64,348			59,661		142,982			93,325

Noninterest income:
Service charges on deposit accounts	2,338			2,338				2,423			2,242			1,939		4,676			4,764
Interchange income	4,145			3,820				3,596			3,682			3,187		7,965			6,433
Wealth management income	2,387			2,323				1,949			1,972			1,719		4,710			3,586
Mortgage banking fees	2,977			4,225				3,646			5,283			3,559		7,202			5,767
Marine finance fees	177			189				145			242			157		366			303
SBA gains	232			287				113			252			181		519			320
BOLI income	872			859				889			899			887		1,731			1,773
Other	2,249			3,744				2,187			2,370			2,147		5,993			5,499
	15,377			17,785				14,948			16,942			13,776		33,162			28,445
Securities (losses) gains, net	(55		)	(114		)		(18		)	4			1,230		(169		)	1,249
Total Noninterest Income	15,322			17,671				14,930			16,946			15,006		32,993			29,694

Noninterest expenses:
Salaries and wages	22,966			21,393				21,490			23,125			20,226		44,359			43,924
Employee benefits	3,953			4,980				3,915			3,995			3,379		8,933			7,634
Outsourced data processing costs	4,676			4,468				4,233			6,128			4,059		9,144			8,692
Telephone / data lines	838			785				774			705			791		1,623			1,505
Occupancy	3,310			3,789				3,554			3,858			3,385		7,099			6,738
Furniture and equipment	1,166			1,254				1,317			1,576			1,358		2,420			2,981
Marketing	1,002			1,168				1,045			1,513			997		2,170			2,275
Legal and professional fees	2,182			2,582				509			3,018			2,277		4,764			5,640
FDIC assessments	515			526				528			474			266		1,041			266
Amortization of intangibles	1,212			1,211				1,421			1,497			1,483		2,423			2,939
Foreclosed property expense and net (gain) loss on sale	(90		)	(65		)		1,821			512			245		(155		)	(70		)
Provision for credit losses on unfunded commitments	—			—				(795		)	756			178		—			224
Other	4,054			4,029				3,869			4,517			3,755		8,083			7,449
Total Noninterest Expense	45,784			46,120				43,681			51,674			42,399		91,904			90,197

Income Before Income Taxes	40,195			43,876				38,140			29,620			32,268		84,071			32,822
Income taxes	8,785			10,157				8,793			6,992			7,188		18,942			7,033

Net Income	$	31,410		$	33,719			$	29,347		$	22,628		$	25,080	$	65,129		$	25,789

Per share of common stock:

Net income diluted	$	0.56		$	0.60			$	0.53		$	0.42		$	0.47	$	1.17		$	0.49
Net income basic	0.57			0.61				0.53			0.42			0.47		1.18			0.49
Cash dividends declared	0.13			—				—			—			—		0.13			—

Average diluted shares outstanding	55,901			55,992				55,739			54,301			53,308		55,827			52,807
Average basic shares outstanding	55,421			55,271				55,219			53,978			52,985		55,347			52,394

CONDENSED CONSOLIDATED BALANCE SHEETS							(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	June 30,			March 31,			December 31,			September 30,			June 30,
(Amounts in thousands)	2021			2021			2020			2020			2020

Assets
Cash and due from banks	$	97,468		$	89,123		$	86,630		$	81,692		$	84,178
Interest bearing deposits with other banks	1,351,377			890,202			317,458			227,876			440,142
Total Cash and Cash Equivalents	1,448,845			979,325			404,088			309,568			524,320

Time deposits with other banks	750			750			750			2,247			2,496

Debt Securities:
Available for sale (at fair value)	1,322,776			1,051,396			1,398,157			1,286,858			976,025
Held to maturity (at amortized cost)	493,467			512,307			184,484			207,376			227,092
Total Debt Securities	1,816,243			1,563,703			1,582,641			1,494,234			1,203,117

Loans held for sale	42,793			60,924			68,890			73,046			54,943

Loans	5,437,049			5,661,492			5,735,349			5,858,029			5,772,052
Less: Allowance for credit losses	(81,127		)	(86,643		)	(92,733		)	(94,013		)	(91,250		)
Net Loans	5,355,922			5,574,849			5,642,616			5,764,016			5,680,802

Bank premises and equipment, net	69,392			70,385			75,117			76,393			69,041
Other real estate owned	12,804			15,549			12,750			15,890			15,847
Goodwill	221,176			221,176			221,176			221,176			212,146
Other intangible assets, net	14,106			15,382			16,745			18,163			17,950
Bank owned life insurance	158,506			132,634			131,776			130,887			127,954
Net deferred tax assets	21,839			24,497			23,629			25,503			21,404
Other assets	154,457			152,646			162,214			156,717			153,993
Total Assets	$	9,316,833		$	8,811,820		$	8,342,392		$	8,287,840		$	8,084,013

Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest demand	$	2,952,160		$	2,685,247		$	2,289,787		$	2,400,744		$	2,267,435
Interest-bearing demand	1,763,884			1,647,935			1,566,069			1,385,445			1,368,146
Savings	811,516			768,362			689,179			655,072			619,251
Money market	1,807,190			1,671,179			1,556,370			1,457,078			1,232,892
Other time certificates	335,370			373,297			425,878			457,964			445,176
Brokered time certificates	20,000			93,500			233,815			381,028			572,465
Time certificates of more than $250,000	146,316			146,229			171,463			177,512			161,418
Total Deposits	7,836,436			7,385,749			6,932,561			6,914,843			6,666,783

Securities sold under agreements to repurchase	119,973			109,171			119,609			89,508			92,125
Federal Home Loan Bank borrowings	—			—			—			35,000			135,000
Subordinated debt	71,506			71,436			71,365			71,295			71,225
Other liabilities	106,571			90,115			88,455			78,853			88,277
Total Liabilities	8,134,486			7,656,471			7,211,990			7,189,499			7,053,410

Shareholders' Equity
Common stock	5,544			5,529			5,524			5,517			5,299
Additional paid in capital	862,598			858,688			856,092			854,188			811,328
Retained earnings	314,584			290,420			256,701			227,354			204,719
Treasury stock	(10,180		)	(8,693		)	(8,285		)	(7,941		)	(8,037		)
	1,172,546			1,145,944			1,110,032			1,079,118			1,013,309
Accumulated other comprehensive income, net	9,801			9,405			20,370			19,223			17,294
Total Shareholders' Equity	1,182,347			1,155,349			1,130,402			1,098,341			1,030,603
Total Liabilities & Shareholders' Equity	$	9,316,833		$	8,811,820		$	8,342,392		$	8,287,840		$	8,084,013

Common shares outstanding	55,436			55,294			55,243			55,169			52,991

CONSOLIDATED QUARTERLY FINANCIAL DATA							(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES



(Amounts in thousands)	2Q'21			1Q'21			4Q'20			3Q'20			2Q'20

Credit Analysis
Net charge-offs - non-acquired loans	$	214		$	292		$	3,028		$	1,112		$	1,714
Net charge-offs - acquired loans	441			78			99			624			37
Total Net Charge-offs	655			370			3,127			1,736			1,751

Net charge-offs to average loans - non-acquired loans	0.02		%	0.02		%	0.20		%	0.08		%	0.12		%
Net charge-offs to average loans - acquired loans	0.03			0.01			0.01			0.04			—
Total Net Charge-offs to Average Loans	0.05			0.03			0.21			0.12			0.12

Allowance for credit losses - non-acquired loans	$	64,525		$	66,523		$	69,786		$	70,388		$	73,587
Allowance for credit losses - acquired loans	16,602			20,120			22,947			23,625			17,663
Total Allowance for Credit Losses	$	81,127		$	86,643		$	92,733		$	94,013		$	91,250

Non-acquired loans at end of period	$	4,290,622		$	4,208,911		$	4,196,205		$	4,157,376		$	4,315,892
Acquired loans at end of period	782,315			870,928			972,183			1,061,853			879,710
Paycheck Protection Program loans at end of period¹	364,112			581,653			566,961			638,800			576,450
Total Loans	$	5,437,049		$	5,661,492		$	5,735,349		$	5,858,029		$	5,772,052

Non-acquired loans allowance for credit losses to non-acquired loans at end of period	1.50		%	1.58		%	1.66		%	1.69		%	1.71		%
Total allowance for credit losses to total loans at end of period	1.49			1.53			1.62			1.60			1.58
Total allowance for credit losses to total loans, excluding PPP loans	1.60			1.71			1.79			1.80			1.76
Purchase discount on acquired loans at end of period	2.98			2.93			2.86			3.01			3.29

End of Period
Nonperforming loans	$	32,920		$	35,328		$	36,110		$	36,897		$	30,051
Other real estate owned	11,019			10,836			10,182			12,299			10,967
Properties previously used in bank operations included in other real estate owned	1,785			4,713			2,569			3,592			4,880
Total Nonperforming Assets	$	45,724		$	50,877		$	48,861		$	52,788		$	45,898

Accruing troubled debt restructures (TDRs)	$	4,037		$	4,067		$	4,182		$	10,190		$	10,338

Nonperforming Loans to Loans at End of Period	0.61		%	0.62		%	0.63		%	0.63		%	0.52		%
Nonperforming Assets to Total Assets at End of Period	0.49			0.58			0.59			0.64			0.57

	June 30,			March 31,			December 31,			September 30,			June 30,
Loans	2021			2021			2020			2020			2020

Construction and land development	$	234,347		$	227,117		$	245,108		$	280,610		$	298,835
Commercial real estate - owner occupied	1,127,640			1,133,085			1,141,310			1,125,460			1,076,650
Commercial real estate - non-owner occupied	1,412,439			1,438,365			1,395,854			1,394,464			1,392,787
Residential real estate	1,226,536			1,246,549			1,342,628			1,393,396			1,468,171
Commercial and financial	900,206			860,813			854,753			833,083			757,232
Consumer	171,769			173,910			188,735			192,216			201,927
Paycheck Protection Program	364,112			581,653			566,961			638,800			576,450
Total Loans	$	5,437,049		$	5,661,492		$	5,735,349		$	5,858,029		$	5,772,052

¹3Q'20 includes $54 million in Paycheck Protection Program loans acquired from Freedom Bank.

AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES ¹											(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


	2Q'21							1Q'21								2Q'20
	Average					Yield/		Average						Yield/		Average					Yield/
(Amounts in thousands)	Balance			Interest		Rate		Balance				Interest		Rate		Balance			Interest		Rate

Assets
Earning assets:
Securities:
Taxable	$	1,629,410		$	6,559	1.61	%	$	1,550,457			$	6,298	1.62	%	$	1,135,698		$	7,573	2.67	%
Nontaxable	25,581			186		2.90		25,932				187		2.89		19,347			152		3.14
Total Securities	1,654,991			6,745		1.63		1,576,389				6,485		1.65		1,155,045			7,725		2.68

Federal funds sold and other investments	925,323			709		0.31		377,344				586		0.63		433,626			684		0.63

Loans excluding PPP loans	5,092,897			55,313		4.36		5,149,642				55,504		4.37		5,304,381			59,861		4.54
PPP loans	505,339			5,127		4.07		609,733				6,886		4.58		424,171			5,068		4.81
Total Loans	5,598,236			60,440		4.33		5,759,375				62,390		4.39		5,728,552			64,929		4.56

Total Earning Assets	8,178,550			67,894		3.33		7,713,108				69,461		3.65		7,317,223			73,338		4.03

Allowance for credit losses	(86,042		)					(91,735		)						(84,965		)
Cash and due from banks	327,171							255,685								103,919
Premises and equipment	70,033							74,272								71,173
Intangible assets	235,964							237,323								230,871
Bank owned life insurance	133,484							132,079								127,386
Other assets	166,686							164,622								147,395

Total Assets	$	9,025,846						$	8,485,354							$	7,913,002

Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand	$	1,692,178		$	235	0.06	%	$	1,600,490			$	258	0.07	%	$	1,298,639		$	297	0.09	%
Savings	790,734			118		0.06		722,274				137		0.08		591,040			165		0.11
Money market	1,736,481			627		0.14		1,609,938				670		0.17		1,193,969			741		0.25
Time deposits	533,350			524		0.39		711,320				1,187		0.68		1,293,766			3,820		1.19
Securities sold under agreements to repurchase	115,512			35		0.12		112,834				41		0.15		74,717			34		0.18
Federal Home Loan Bank borrowings	—			—		—		—				—		—		199,698			312		0.63
Other borrowings	71,460			422		2.37		71,390				427		2.43		71,185			581		3.28

Total Interest-Bearing Liabilities	4,939,715			1,961		0.16		4,828,246				2,720		0.23		4,723,014			5,950		0.51

Noninterest demand	2,799,643							2,432,038								2,097,038
Other liabilities	116,093							88,654								79,855
Total Liabilities	7,855,451							7,348,938								6,899,907

Shareholders' equity	1,170,395							1,136,416								1,013,095

Total Liabilities & Equity	$	9,025,846						$	8,485,354							$	7,913,002

Cost of deposits						0.08	%							0.13	%						0.31	%
Interest expense as a % of earning assets						0.10	%							0.14	%						0.33	%
Net interest income as a % of earning assets				$	65,933	3.23	%					$	66,741	3.51	%				$	67,388	3.70	%


¹On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.
Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.


	Six Months Ended June 30, 2021							Six Months Ended June 30, 2020
	Average					Yield/		Average					Yield/
(Amounts in thousands, except ratios)	Balance			Interest		Rate		Balance			Interest		Rate

Assets
Earning assets:
Securities:
Taxable	$	1,590,152		$	12,857	1.62	%	$	1,144,086		$	16,269	2.84	%
Nontaxable	25,756			373		2.90		19,544			304		3.11
Total Securities	1,615,908			13,230		1.64		1,163,630			16,573		2.85

Federal funds sold and other investments	652,847			1,295		0.40		260,775			1,418		1.09

Loans excluding PPP loans	5,121,114			110,817		4.36		5,259,808			123,385		4.72
PPP loans	557,247			12,013		4.35		212,085			5,068		4.81
Total Loans	5,678,361			122,830		4.36		5,471,893			128,453		4.72

Total Earning Assets	7,947,116			137,355		3.49		6,896,298			146,444		4.27

Allowance for credit losses	(88,873		)					(70,948		)
Cash and due from banks	291,626							97,002
Premises and equipment	72,141							69,379
Intangible assets	236,640							228,791
Bank owned life insurance	132,785							126,939
Other assets	165,658							136,811

Total Assets	$	8,757,093						$	7,484,272

Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand	$	1,646,587		$	493	0.06	%	$	1,236,285		$	1,131	0.18	%
Savings	756,693			255		0.07		558,883			513		0.18
Money market	1,673,559			1,297		0.16		1,161,363			2,749		0.48
Time deposits	621,844			1,711		0.55		1,222,758			8,588		1.41
Securities sold under agreements to repurchase	114,181			76		0.13		72,891			201		0.55
Federal Home Loan Bank borrowings	—			—		—		224,860			1,279		1.14
Other borrowings	71,425			849		2.40		71,149			1,304		3.69

Total Interest-Bearing Liabilities	4,884,289			4,681		0.19		4,548,189			15,765		0.70

Noninterest demand	2,616,856							1,861,126
Other liabilities	102,450							71,413
Total Liabilities	7,603,595							6,480,728

Shareholders' equity	1,153,499							1,003,544

Total Liabilities & Equity	$	8,757,093						$	7,484,272

Cost of deposits						0.10	%						0.43	%
Interest expense as a % of earning assets						0.12	%						0.46	%
Net interest income as a % of earning assets				$	132,674	3.37	%				$	130,679	3.81	%


¹On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.
Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.

CONSOLIDATED QUARTERLY FINANCIAL DATA					(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	June 30,		March 31,			December 31,		September 30,		June 30,
(Amounts in thousands)	2021		2021			2020		2020		2020

Customer Relationship Funding
Noninterest demand
Commercial	$	2,431,928	$	2,189,564		$	1,821,361	$	1,973,494	$	1,844,288
Retail	401,988		379,257			350,783		322,559		314,723
Public funds	88,057		83,315			90,973		70,371		74,674
Other	30,187		33,111			26,670		34,320		33,750
Total Noninterest Demand	2,952,160		2,685,247			2,289,787		2,400,744		2,267,435

Interest-bearing demand
Commercial	545,797		497,047			454,909		413,513		412,846
Retail	958,619		895,853			839,958		777,078		733,772
Public funds	259,468		255,035			271,202		194,854		221,528
Total Interest-Bearing Demand	1,763,884		1,647,935			1,566,069		1,385,445		1,368,146

Total transaction accounts
Commercial	2,977,725		2,686,611			2,276,270		2,387,007		2,257,134
Retail	1,360,607		1,275,110			1,190,741		1,099,637		1,048,495
Public funds	347,525		338,350			362,175		265,225		296,202
Other	30,187		33,111			26,670		34,320		33,750
Total Transaction Accounts	4,716,044		4,333,182			3,855,856		3,786,189		3,635,581

Savings	811,516		768,362			689,179		655,072		619,251

Money market
Commercial	787,894		692,537			611,623		634,697		586,416
Retail	737,554		701,453			661,311		613,532		579,126
Brokered	187,023		197,389			196,616		141,808		—
Public funds	94,719		79,800			86,820		67,041		67,350
Total Money Market	1,807,190		1,671,179			1,556,370		1,457,078		1,232,892

Brokered time certificates	20,000		93,500			233,815		381,028		572,465
Other time certificates	481,686		519,526			597,341		635,476		606,594
	501,686		613,026			831,156		1,016,504		1,179,059
Total Deposits	$	7,836,436	$	7,385,749		$	6,932,561	$	6,914,843	$	6,666,783

Customer sweep accounts	$	119,973	$	109,171		$	119,609	$	89,508	$	92,125

Explanation of Certain Unaudited Non-GAAP Financial Measures

This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance. The Company believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance and if not provided would be requested by the investor community. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might define or calculate these measures differently. The Company provides reconciliations between GAAP and these non-GAAP measures. These disclosures should not be considered an alternative to GAAP.

GAAP TO NON-GAAP RECONCILIATION									(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

	Quarterly Trends																					Six Months Ended

(Amounts in thousands, except per share data)	2Q'21				1Q'21					4Q'20				3Q'20				2Q'20				2Q'21				2Q'20

Net Income	$	31,410			$	33,719				$	29,347			$	22,628			$	25,080			$	65,129			$	25,789

Total noninterest income	15,322				17,671					14,930				16,946				15,006				32,993				29,694
Securities losses (gains), net	55				114					18				(4		)		(1,230		)		169				(1,249		)
Total Adjustments to Noninterest Income	55				114					18				(4		)		(1,230		)		169				(1,249		)
Total Adjusted Noninterest Income	15,377				17,785					14,948				16,942				13,776				33,162				28,445

Total noninterest expense	45,784				46,120					43,681				51,674				42,399				91,904				90,197
Merger related charges	(509		)		(581		)			—				(4,281		)		(240		)		(1,090		)		(4,793		)
Amortization of intangibles	(1,212		)		(1,211		)			(1,421		)		(1,497		)		(1,483		)		(2,423		)		(2,939		)
Business continuity expenses	—				—					—				—				—				—				(307		)
Branch reductions and other expense initiatives	(663		)		(449		)			(354		)		(464		)		—				(1,112		)		—
Total Adjustments to Noninterest Expense	(2,384		)		(2,241		)			(1,775		)		(6,242		)		(1,723		)		(4,625		)		(8,039		)
Total Adjusted Noninterest Expense	43,400				43,879					41,906				45,432				40,676				87,279				82,158

Income Taxes	8,785				10,157					8,793				6,992				7,188				18,942				7,033
Tax effect of adjustments	598				577					440				1,530				121				1,175				1,665
Total Adjustments to Income Taxes	598				577					440				1,530				121				1,175				1,665
Adjusted Income Taxes	9,383				10,734					9,233				8,522				7,309				20,117				8,698
Adjusted Net Income	$	33,251			$	35,497				$	30,700			$	27,336			$	25,452			$	68,748			$	30,914

Earnings per diluted share, as reported	$	0.56			$	0.60				$	0.53			$	0.42			$	0.47			$	1.17			$	0.49
Adjusted Earnings per Diluted Share	0.59				0.63					0.55				0.50				0.48				1.23				0.59
Average diluted shares outstanding	55,901				55,992					55,739				54,301				53,308				55,827				52,807

Adjusted Noninterest Expense	$	43,400			$	43,879				$	41,906			$	45,432			$	40,676			$	87,279			$	82,158
Provision for credit losses on unfunded commitments	—				—					795				(756		)		(178		)		—				(224		)
Foreclosed property expense and net gain / (loss) on sale	90				65					(1,821		)		(512		)		(245		)		155				70
Net Adjusted Noninterest Expense	$	43,490			$	43,944				$	40,880			$	44,164			$	40,253			$	87,434			$	82,004

Revenue	$	81,124			$	84,281				$	83,721			$	80,449			$	82,278			$	165,405			$	160,143
Total Adjustments to Revenue	55				114					18				(4		)		(1,230		)		169				(1,249		)
Impact of FTE adjustment	131				131					112				118				116				262				230
Adjusted Revenue on a fully taxable equivalent basis	$	81,310			$	84,526				$	83,851			$	80,563			$	81,164			$	165,836			$	159,124
Adjusted Efficiency Ratio	53.49			%	51.99			%		48.75			%	54.82			%	49.60			%	52.72			%	51.53			%

Net Interest Income	$	65,802			$	66,610				$	68,791			$	63,503			$	67,272			$	132,412			$	130,449
Impact of FTE adjustment	131				131					112				118				116				262				230
Net Interest Income including FTE adjustment	$	65,933			$	66,741				$	68,903			$	63,621			$	67,388			$	132,674			$	130,679
Total noninterest income	15,322				17,671					14,930				16,946				15,006				32,993				29,694
Total noninterest expense	45,784				46,120					43,681				51,674				42,399				91,904				90,197
Pre-Tax Pre-Provision Earnings	$	35,471			$	38,292				$	40,152			$	28,893			$	39,995			$	73,763			$	70,176
Total Adjustments to Noninterest Income	55				114					18				(4		)		(1,230		)		169				(1,249		)
Total Adjustments to Noninterest Expense	(2,294		)		(2,176		)			(2,801		)		(7,510		)		(2,146		)		(4,470		)		(8,193		)
Adjusted Pre-Tax Pre-Provision Earnings	$	37,820			$	40,582				$	42,971			$	36,399			$	40,911			$	78,402			$	77,120

Average Assets	$	9,025,846			$	8,485,354				$	8,376,396			$	8,086,890			$	7,913,002			$	8,757,093			$	7,484,272
Less average goodwill and intangible assets	(235,964		)		(237,323		)			(238,631		)		(228,801		)		(230,871		)		(236,640		)		(228,791		)
Average Tangible Assets	$	8,789,882			$	8,248,031				$	8,137,765			$	7,858,089			$	7,682,131			$	8,520,453			$	7,255,481

Return on Average Assets (ROA)	1.40			%	1.61			%		1.39			%	1.11			%	1.27			%	1.50			%	0.69			%
Impact of removing average intangible assets and related amortization	0.08				0.09					0.10				0.09				0.10				0.08				0.09
Return on Average Tangible Assets (ROTA)	1.48				1.70					1.49				1.20				1.37				1.58				0.78
Impact of other adjustments for Adjusted Net Income	0.04				0.05					0.01				0.18				(0.04		)		0.05				0.08
Adjusted Return on Average Tangible Assets	1.52				1.75					1.50				1.38				1.33				1.63				0.86

Average Shareholders' Equity	$	1,170,395			$	1,136,416				$	1,111,073			$	1,061,807			$	1,013,095			$	1,153,499			$	1,003,544
Less average goodwill and intangible assets	(235,964		)		(237,323		)			(238,631		)		(228,801		)		(230,871		)		(236,640		)		(228,791		)
Average Tangible Equity	$	934,431			$	899,093				$	872,442			$	833,006			$	782,224			$	916,859			$	774,753

Return on Average Shareholders' Equity	10.76			%	12.03			%		10.51			%	8.48			%	9.96			%	11.39			%	5.17			%
Impact of removing average intangible assets and related amortization	3.12				3.59					3.36				2.87				3.51				3.34				2.10
Return on Average Tangible Common Equity (ROTCE)	13.88				15.62					13.87				11.35				13.47				14.73				7.27
Impact of other adjustments for Adjusted Net Income	0.39				0.39					0.13				1.71				(0.38		)		0.39				0.75
Adjusted Return on Average Tangible Common Equity	14.27				16.01					14.00				13.06				13.09				15.12				8.02

Loan interest income¹	$	60,440			$	62,390				$	65,684			$	60,573			$	64,929			$	122,830			$	128,453
Accretion on acquired loans	(2,886		)		(2,868		)			(4,448		)		(3,254		)		(2,988		)		(5,754		)		(7,275		)
Interest and fees on PPP loans	(5,127		)		(6,886		)			(5,187		)		(1,719		)		(5,068		)		(12,013		)		(5,068		)
Loan interest income excluding PPP and accretion on acquired loans	$	52,427			$	52,636				$	56,049			$	55,600			$	56,873			$	105,063			$	116,110

Yield on loans¹	4.33				4.39					4.42				4.11				4.56				4.36				4.72
Impact of accretion on acquired loans	(0.21		)		(0.20		)			(0.30		)		(0.22		)		(0.21		)		(0.20		)		(0.27		)
Impact of PPP loans	0.01				(0.04		)			0.11				0.33				(0.04		)		(0.02		)		(0.01		)
Yield on loans excluding PPP and accretion on acquired loans	4.13			%	4.15			%		4.23			%	4.22			%	4.31			%	4.14			%	4.44			%

Net Interest Income¹	$	65,933			$	66,741				$	68,903			$	63,621			$	67,388			$	132,674			$	130,679
Accretion on acquired loans	(2,886		)		(2,868		)			(4,448		)		(3,254		)		(2,988		)		(5,754		)		(7,275		)
Interest and fees on PPP loans	(5,127		)		(6,886		)			(5,187		)		(1,719		)		(5,068		)		(12,013		)		(5,068		)
Net interest income excluding PPP and accretion on acquired loans	$	57,920			$	56,987				$	59,268			$	58,648			$	59,332			$	114,907			$	118,336

Net Interest Margin	3.23				3.51					3.59				3.40				3.70				3.37				3.81
Impact of accretion on acquired loans	(0.14		)		(0.15		)			(0.23		)		(0.17		)		(0.16		)		(0.15		)		(0.25		)
Impact of PPP loans	(0.06		)		(0.11		)			0.01				0.19				(0.08		)		(0.08		)		—
Net interest margin excluding PPP and accretion on acquired loans	3.03			%	3.25			%		3.37			%	3.42			%	3.46			%	3.14			%	3.56			%

Security interest income¹	$	6,745			$	6,485				$	6,586			$	7,129			$	7,725			$	13,230			$	16,573
Tax equivalent adjustment on securities	(39		)		(39		)			(23		)		(32		)		(31		)		(78		)		(61		)
Security interest income excluding tax equivalent adjustment	$	6,706			$	6,446				$	6,563			$	7,097			$	7,694			$	13,152			$	16,512

Loan interest income¹	$	60,440			$	62,390				$	65,684			$	60,573			$	64,929			$	122,830			$	128,453
Tax equivalent adjustment on loans	(92		)		(92		)			(89		)		(86		)		(85		)		(184		)		(169		)
Loan interest income excluding tax equivalent adjustment	$	60,348			$	62,298				$	65,595			$	60,487			$	64,844			$	122,646			$	128,284

Net Interest Income¹	$	65,933			$	66,741				$	68,903			$	63,621			$	67,388			$	132,674			$	130,679
Tax equivalent adjustment on securities	(39		)		(39		)			(23		)		(32		)		(31		)		(78		)		(61		)
Tax equivalent adjustment on loans	(92		)		(92		)			(89		)		(86		)		(85		)		(184		)		(169		)
Net interest income excluding tax equivalent adjustment	$	65,802			$	66,610				$	68,791			$	63,503			$	67,272			$	132,412			$	130,449

¹On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.

Seacoast Reports Second Quarter 2021 Results

Set Language