Seacoast Banking Corporation of Florida Q1 FY2026 earnings call

• SECOS team had robust deposit growth, especially non-interest-bearing deposits, net interest margin expansion, solid commercial loan production momentum though impacted by payoffs, strong asset quality, non-interest income well-performing from various businesses, excellent expense discipline with adjusted deficiency ratio 55% and ratio of adjusted non-interest expense to tangible assets near 2.1%, adjusted return on assets 1.31% and adjusted return on tangible equity 16.3%. - Strategy to drive shareholder returns on track, combined franchise has strong earnings power. - Wealth management team had strong results with income growth 36% year-over-year and AUM growth 33% year-over-year. - Operating leverage improved with efficiency ratio at 59.5% and adjusted efficiency ratio at 55.3%.

Net income was $31.9 million, or $0.29 per share in the first quarter. Adjusted net income was $67.8 million, or $0.62 per share. Net interest income totaled $178.2 million, up $1.9 million from prior quarter. Net interest margin expanded 17 basis points to 3.83%. Reported non-interest income was a net loss of $12.6 million. Adjusted non-interest income totaled $26.9 million. Wealth management income grew 36% year-over-year. Loans ended at $12.6 billion. Total deposits increased $382 million during the quarter. Asset quality metrics remain solid with allowance for credit losses at 1.39% of loans.

Remains confident in 2026 outlook. Adjusted earnings per share outlook remains unchanged at $2.48 to $2.52 despite two less rate cuts. Potential for slightly lower revenue due to change in expected rate cuts but no change to bottom line results.

• Macro uncertainty impacts on loan growth and pipeline. - Cost saves from villages conversion may be affected by normal annual pay cycle increase and efficiency ratio movement. - Deposit costs may stabilize or increase without Fed rate cuts as deposit balances grow.

Q: Woody Ley asked about loan growth, pipeline in 2Q26 and macro uncertainty.

A: Pipeline strong, expect return to high single digits in coming quarters, macro uncertainty impacts unknown.

Q: Rosalind Gunther asked about core margin trend, deposit cost ability to lower.

A: Expect continued margin expansion in 2Q and 3Q, deposit costs may stabilize or increase without Fed cuts.

Q: Liam Cooheel asked about successful business areas and wealth management growth.

A: Growth broad-based in villages, expansionary markets, wealth management expected to continue growing.

Q: Kyle Gehrman asked about banker hiring progress and M&A appetite.

A: About halfway done with banker hiring, near-term focus on villages conversion, may evaluate M&A in Florida markets post-conversion