SEACOAST BANKING CORP OF FLORIDA Q1 FY2025 earnings call

• Seacoast has a strong balance sheet with industry-leading capital, robust credit diversity, and a granular deposit franchise. • The company outperformed peers in loans and deposits, with net interest margin expanding 9 basis points and cost of deposits declining 15 basis points. • Talent investments have driven onboarding of new relationships, with 10 revenue-producing bankers onboarded during the quarter. • Asset quality remained strong with NPL ratio dropping 68 basis points, though provision for loan losses increased due to strong loan growth. • Expect to close and convert the Heartland Bancshares transaction in the third quarter. • Grew branch footprint with two new locations in Fort Lauderdale and Tampa.

Seacoast reported net income of $31.5 million or $0.37 per share in the first quarter. Pre-tax pre-provision income increased to $50.6 million. Loans grew at an annualized rate of nearly 6% with production of $555 million in the first quarter and a pipeline expanding over 40% from the prior quarter. Deposits were up 11% annualized with non-interest-bearing balances growing 17% annualized. Net interest income was $118.5 million, up 2% from the prior quarter, with the net interest margin expanding 9 basis points to 3.48%. Non-interest income excluding securities activity was $22 million, increasing 8% from Q1 2024. Wealth management revenue was up 20% and insurance agency income up 25% year-over-year. The capital position remains strong with a Tier 1 capital ratio of 14.7% and tangible common equity to tangible assets at 9.6%.

• Net interest income expected to continue growing through the remainder of 2025. • Non-interest income for Q2 expected to be in the range of $20 million to $22 million. • Expect mid to high single-digit loan growth in the coming quarter and full year 2025, though tariffs may introduce uncertainty. • Heartland Bancshares acquisition expected to close in the third quarter of 2025.

• Macro-economic volatility and increased market uncertainty pose risks. • Impact of tariffs on loan growth and customer projects is uncertain. • Potential credit impacts from idiosyncratic loan situations and broader economic/fiscal policy decisions. • Possible outflow of deposits in the second quarter as previously noted.

Q: Clarity on the securities trade related to the pending Heartland deal A: Michael Young explained it was a unique opportunity leveraging Heartland's securities portfolio, cash balances, and deposit relationships, pre-purchasing securities to retain following the transaction with minimal rate volatility impact Q: Increase in core loan yields and NIM outlook A: Michael Young noted about 50% fixed loans, 29% adjustable, and 20-21% floating; impact of Fed rate cuts small, with received float hedges rolling off, and focus on proactive deposit pricing to drive NIM expansion Q: Loan growth outlook and excess capital deployment A: Chuck Shaffer stated confidence in high single-digit loan growth in the back half of 2025 barring tariff/economic volatility, and remains open to M&A and buybacks depending on environment Q: NIM target and Heartland acquisition impact A: Michael Young mentioned core trends positive, with deposit cost management and back book repricing as tailwinds; timing of Heartland acquisition close could impact NIM target but trajectory is positive Q: Credit metrics and criticized/classified loans A: James Stallings said a handful of idiosyncratic loans drove criticized/classified increase, mostly isolated situations with low loss content Q: Heartland M&A and capital deployment strategy A: Chuck Shaffer stated remains open to M&A, disciplined in earn backs, pricing, etc., and buybacks could be attractive depending on environment post Heartland deal Q: Loan growth opportunity and tariff impact on clients A: Chuck Shaffer said pipeline remains solid, no true impact yet, too early to call tariff impact on forward growth; customers generally committed to projects Q: Fee income trends and seasonality A: Michael Young explained seasonal declines in some fees, but growth in wealth, treasury management, and SBA; wealth portfolio has significant fixed income, opening opportunities despite market pullback Q: Deposit costs and revenue producers A: Michael Young said opportunities to adjust deposit costs tactically, demand deposits a key driver; Chuck Shaffer noted team built for mid to high single-digit growth, selective on additional overhead for now Q: Loan portfolio sectors and tariff impact A: James Stallings said monitoring C&I businesses for tariff impacts, clients adjusting business models, but cautious on C&I with derivative exposure; Tracey Dexter mentioned allowance contemplates economic scenario blend including Moody's baseline, S3, and S1 Q: Charge-offs, ACL, and residential market in Florida A: Chuck Shaffer said net charge-offs around 25 basis points as reasonable assumption; Tracey Dexter explained allowance uses blend of Moody's economic scenarios; Chuck Shaffer stated no weakness seen in residential market in Florida despite insurance rate spikes, with stable values and healthy market