Seacoast Banking Corporation of Florida Q4 FY2025 earnings call

• The Seacoast team had a strong quarter with adjusted net income increasing 18% year-over-year to $47.7 million. - Loan production was very strong with organic growth of 15% annualized. - Noninterest income was strong across categories, with Wealth Management adding $550 million in new AUM. - Overhead was well managed, with the expense ratio improving. - Completed the acquisition of Villages Bank Corporation on October 1, 2025, with technology conversion planned for July 2026. - Opened 2 de novo branches in the fourth quarter, with 5 total in 2025.

Loan outstandings grew at an annualized rate of 15% driven by commercial banking and the Villages acquisition. Net interest income was $174.6 million, an increase of 31% from the prior quarter, with the net interest margin excluding accretion on acquired loans expanding 12 basis points to 3.44%. Noninterest income was $28.6 million, increasing 20% from the prior quarter. Wealth Management income grew 21% from the prior quarter, with total AUM up 37% year-over-year. Noninterest expense in the fourth quarter was $130.5 million, with the adjusted efficiency ratio improving to 54.5%. Deposits increased to $16.3 billion, with the cost of deposits at 1.67%. Capital position remained strong with Seacoast Tier 1 capital ratio at 14.4% and tangible equity to tangible assets at 9.3%.

• Full year 2026 earnings per share expected in the range of $2.48 to $2.52. - Anticipate exiting 2026 Q4 with ROA above 1.30% and return on tangible equity of approximately 16%. - 2026 adjusted revenue growth expected to be 29% to 31%. - Adjusted efficiency ratio expected to be in the 53% to 55% range. - Plan to increase banker count by approximately 15% in 2026.

• Market-specific weakness in certain Florida markets, such as condo retrofits affecting sales. - Dependence on the rate environment affecting loan payoffs and refinancing. - Volatility in purchase accounting accretion due to long maturities in the Villages loan portfolio.

Q: David Feaster inquired about the adjusted efficiency ratio and hiring investments.

A: Tracey noted the adjusted efficiency ratio includes intangible amortization, and Michael discussed the impact of banker hiring on the efficiency ratio.

Q: Russell Gunther asked about margin, NII, and purchase accounting.

A: Michael discussed first quarter margin expectations, and Tracey talked about volatility in purchase accounting accretion.

Q: Stephen Scouten asked about the Atlanta market and payoffs.

A: Charles discussed the Atlanta market growth and Michael talked about rate dependence on payoffs.

Q: David Bishop asked about core deposits and loan spreads.

A: Charles mentioned plans to provide deposit breakdowns and Michael discussed new originations vs. roll-off yields.

Q: Wood Lay inquired about fee income and Villages synergies.

A: Michael talked about mortgage portfolio retention and Charles discussed early wealth management synergies from the Villages acquisition