Well-Positioned Balance Sheet with
Distinctive Deposit Franchise with Granular, Longstanding Customer Base
Adjusted net income1 for the second quarter of 2023 was
For the second quarter of 2023, return on average tangible assets was 1.06% and return on average tangible shareholders’ equity was 12.08%, compared to 0.52% and 5.96%, respectively, in the prior quarter, and 1.29% and 13.01%, respectively, in the prior year quarter. Adjusted return on average tangible assets1 in the second quarter of 2023 was 1.41% and adjusted return on average tangible shareholders’ equity1 was 16.08%, compared to 0.90% and 10.34%, respectively, in the prior quarter, and 1.38% and 13.97%, respectively, in the prior year quarter. For the six months ended
Shaffer added, “Seacoast is committed to our fortress balance sheet, with an allowance for loan losses of
Shaffer concluded, “Our strategic focus for the balance of the year will be on relationship-driven customer acquisition and carefully managing our expense base while investing in tactics to drive low-cost deposit growth. We believe that this rigorous approach will support solid capital growth, produce a broadly diversified and stable funding base, and generate increased franchise value over the long run.”
Acquisition Update
In
Financial Results
Income Statement
- Net income was
$31.2 million , or$0.37 per diluted share, for the second quarter of 2023 compared to net income of$11.8 million , or$0.15 per diluted share, for the prior quarter, and$32.8 million , or$0.53 per diluted share, for the prior year quarter. For the six months endedJune 30, 2023 , net income was$43.1 million , or$0.52 per diluted share, compared to$53 .3 million, or$0.86 per diluted share, for the six months endedJune 30, 2022 . The results for the six months endedJune 30, 2023 included the$26.6 million day-1 provision for credit losses on loans acquired in the Professional acquisition. Adjusted net income1 for the second quarter of 2023 was$49.2 million , or$0.58 per diluted share, compared to$29.2 million , or$0.36 per diluted share, for the prior quarter, and$36.3 million , or$0.59 per diluted share, for the prior year quarter. For the six months endedJune 30, 2023 , adjusted net income1 was$78.4 million , or$0.94 per diluted share, compared to$63.4 million , or$1.03 per diluted share, for the six months endedJune 30, 2022 . - Net revenues were
$148.5 million in the second quarter of 2023, a decrease of$5.1 million , or 3%, compared to the prior quarter, and an increase of$49.9 million , or 51%, compared to the prior year quarter. For the six months endedJune 30, 2023 , net revenues were$302.1 million , an increase of$111.6 million , or 59%, compared to the six months endedJune 30, 2022 . Adjusted revenues1 were$148.7 million in the second quarter of 2023, a decrease of$2.7 million , or 2%, compared to the prior quarter, and an increase of$49.8 million , or 50%, compared to the prior year quarter. For the six months endedJune 30, 2023 , adjusted revenues1 were$300.1 million , an increase of$108.8 million , or 57%, compared to the six months endedJune 30, 2022 . - Pre-tax pre-provision earnings1 were
$40.9 million in the second quarter of 2023, a decrease of 12% compared to the first quarter of 2023 and a decrease of 4% compared to the second quarter of 2022. Adjusted pre-tax pre-provision earnings1 were$64.9 million in the second quarter of 2023, a decrease of 9% compared to the first quarter of 2023 and an increase of 40% compared to the second quarter of 2022. Adjusted pre-tax pre-provision earnings1 for the six months endedJune 30, 2023 were$135.9 million , an increase of$47.8 million , or 54%, when compared to the six months endedJune 30, 2022 . - Net interest income totaled
$127.0 million in the second quarter of 2023, a decrease of$4.2 million , or 3%, from the first quarter of 2023 and an increase of$45.3 million , or 56%, compared to the second quarter of 2022. When excluding accretion on acquired loans, net interest income declined$2.4 million . Accretion on acquired loans totaled$14.2 million in the second quarter of 2023,$15.9 million in the first quarter of 2023, and$2.7 million in the second quarter of 2022. For the six months endedJune 30, 2023 , net interest income was$258.1 million , an increase of$99.9 million , or 63%, compared to the six months endedJune 30, 2022 . Accretion on acquired loans totaled$30.1 million for the six months endedJune 30, 2023 , compared to$6.4 million for the six months endedJune 30, 2022 . - Net interest margin decreased 45 basis points to 3.86% in the second quarter of 2023 compared to 4.31% in the first quarter of 2023. The decline in the net interest margin from the prior quarter was driven by the impact of rising rates on the competitive environment for deposits, the continued effect of an inverted yield curve, and lower accretion of purchase discounts on acquired loans. Loan yields increased three basis points to 5.89%. The effect on loan yields of accretion of purchase discounts on acquired loans in the second quarter of 2023 was an increase of 56 basis points, compared to an increase of 69 basis points in the first quarter of 2023. Securities yields increased 28 basis points to 3.13%, including approximately 12 basis points of benefit from interest rate swaps initiated in the second quarter. The cost of deposits increased 61 basis points, from 77 basis points in the prior quarter, to 1.38% for the second quarter of 2023.
- Noninterest income totaled
$21.6 million in the second quarter of 2023, a decrease of$0.9 million , or 4%, compared to the prior quarter, and an increase of$4.6 million , or 27%, compared to the prior year quarter. For the six months endedJune 30, 2023 , noninterest income was$44.0 million , an increase of$11.7 million , or 36%, compared to the six months endedJune 30, 2022 . Results for the second quarter of 2023 included the following:- Service charges on deposits increased
$0.3 million , or 7%, compared to the prior quarter and$1.2 million , or 34%, year over year, including the continued benefit of the expansion of treasury management services to commercial customers. - Interchange income totaled
$5.1 million in the second quarter, an increase of$0.4 million , or 8%, when compared to the prior quarter and$0.8 million , or 19%, compared to the prior year quarter. As a reminder, beginning in the third quarter of 2023, the Company’s interchange income will be reduced by the requirements of the Durbin amendment, which became effective for the Company onJuly 1, 2023 . - The wealth management division continues to demonstrate notable success in building relationships, and during the second quarter of 2023, income increased
$0.3 million , or 8%, compared to the prior quarter and$0.5 million , or 20%, compared to the prior year quarter. Assets under management increased by $60 million in the second quarter of 2023, bringing total assets under management to$1.6 billion , up 36% from the prior year. - Mortgage banking fees totaled
$0.6 million in the second quarter, an increase of$0.2 million , or 35%, due to higher saleable production. - Other income decreased by
$1.8 million compared to the prior quarter, primarily the result of the recognition in the prior quarter of$2.1 million in bank owned life insurance (“BOLI”) death benefits.
- Service charges on deposits increased
- The provision for credit losses was a net benefit of
$0.8 million in the second quarter of 2023, compared to a provision of$31.6 million in the first quarter of 2023 and a provision of$0.8 million in the second quarter of 2022. The provision for credit losses in the first quarter of 2023 included$26.6 million in day-1 provision recorded at the acquisition of Professional. - Noninterest expense was
$107.9 million in the second quarter of 2023, an increase of$0.4 million compared to the prior quarter, and an increase of$51.7 million , or 92%, compared to the prior year quarter. The second quarter of 2023 included$15.6 million of merger-related expenses, compared to$17.5 million in the prior quarter and$3.0 million in the prior year quarter. Noninterest expense was$215.3 million for the six months endedJune 30, 2023 , including$33.2 million in merger-related charges, compared to$115.1 million in the six months endedJune 30, 2022 , which included$9.7 million in merger-related charges. Changes compared to the first quarter of 2023 included:- Salaries and wages decreased
$2.5 million to$45.2 million in the second quarter of 2023. The second quarter of 2023 included$1.6 million in merger-related expenses, compared to$4.2 million in the first quarter of 2023. - In the third quarter of 2023, we are continuing our focus on efficiency and streamlining operations, and in late July we executed a reduction in the Company’s workforce by approximately 5%. The Company will incur severance charges in a range of approximately
$2.0 to$3.0 million . The resulting lower compensation expense in the third quarter of 2023 will largely be offset by investments in marketing expenses to drive low-cost deposit growth, and lower expense deferral associated with slowing loan originations. As a reminder, under the relevant accounting guidance, the Company defers the expenses associated with the origination of new loans, and recognizes this expense as a reduction to loan yield over the life of the loan. We expect the full benefit of the reduction in workforce to materialize in the fourth quarter of 2023. - Employee benefits decreased
$1.1 million to$7.5 million in the second quarter of 2023 as a result of higher seasonal payroll taxes impacting the first quarter of 2023. - Outsourced data processing costs increased
$5.7 million to$20.2 million in the second quarter of 2023. The second quarter of 2023 included$10.9 million in merger-related expenses, compared to$6.6 million in the first quarter of 2023. Termination penalties related to the Professional technology contracts were recorded in the second quarter in conjunction with the system conversion. - Telephone and data lines increased
$0.4 million to$1.5 million in the second quarter of 2023 reflecting the expansion of the branch footprint. - Legal and professional fees decreased by
$3.4 million to$4.1 million in the second quarter of 2023, and included$1.7 million in merger-related expenses during the second quarter of 2023 compared to$4.8 million of merger-related expenses in the first quarter of 2023. - Amortization of intangibles increased by
$0.9 million to$7.7 million resulting from the first full quarter of amortization of the core deposit intangible assets acquired from Professional. These assets are amortized using an accelerated amortization method. - Other noninterest expenses increased
$1.1 million to$8.3 million in the second quarter of 2023, primarily attributed to maintaining parallel activities and processes prior to the conversion of Professional inJune 2023 .
- Salaries and wages decreased
- Seacoast recorded
$10.2 million of income tax expense in the second quarter of 2023, compared to$2.7 million in the first quarter of 2023, and$8.9 million in the second quarter of 2022, with an effective tax rate of 24.6%, 18.6%, and 21.3%, respectively. Impacts related to stock-based compensation were tax expense of$0.3 million in the second quarter of 2023, tax benefits of$0.2 million in the first quarter of 2023, and tax benefits of$0.4 million in the second quarter of 2022. The first quarter of 2023 included a discrete benefit of$0.6 million related to the BOLI distribution which, combined with lower overall pre-tax income, resulted in a lower effective tax rate in that period. - The efficiency ratio was 67.34% in the second quarter of 2023, compared to 65.43% in the first quarter of 2023 and 56.22% in the prior year quarter. The adjusted efficiency ratio1 was 56.44% in the second quarter of 2023, compared to 53.10% in the first quarter of 2023 and 53.15% in the prior year quarter. The Company continues to remain keenly focused on disciplined expense control. The increase in the adjusted efficiency ratio primarily reflects the impact of higher deposit rates on net interest income in the period. The adjusted efficiency ratio1 for the six months ended
June 30, 2023 was 54.76% compared to 53.97% for the six months endedJune 30, 2022 .
Balance Sheet
- At
June 30, 2023 , the Company had total assets of$15.0 billion and total shareholders’ equity of$2.1 billion . Book value per share was$24.14 onJune 30, 2023 , compared to$24.24 onMarch 31, 2023 , and$21.65 onJune 30, 2022 . Tangible book value per share totaled$14.24 onJune 30, 2023 compared to$14.25 onMarch 31, 2023 and$16.66 onJune 30, 2022 . Removing the impact of the change in accumulated comprehensive income, tangible book value per share increased by$0.20 . - Debt securities totaled
$2.6 billion onJune 30, 2023 , a decrease of$129.8 million , or 5%, compared toMarch 31, 2023 . Debt securities include approximately$1.9 billion in securities held at fair value and classified as available for sale. The unrealized loss on these securities is fully reflected in the value presented on the balance sheet. The portfolio also includes$707.8 million in securities classified as held to maturity with a fair value of$577.6 million . Held-to-maturity securities consist solely of mortgage-backed securities and collateralized mortgage obligations guaranteed byU.S. government agencies, each of which is expected to recover any price depreciation over its holding period as the debt securities move to maturity. The Company has significant liquidity and available borrowing capacity and has the intent and ability to hold these investments to maturity. - Loans decreased
$16.5 million when compared to the prior quarter, totaling$10.1 billion as ofJune 30, 2023 . The Company continues to exercise a disciplined approach to lending, carefully underwriting loans to strict underwriting guidelines and setting high expectations for risk adjusted returns given the current environment. - Loan originations were
$518 .9 million in the second quarter of 2023, a decrease of 3% compared to$536 .3 million in the first quarter of 2023.- Commercial originations were
$317 .4 million during the second quarter of 2023, compared to$321 .7 million in the first quarter of 2023, and$461 .9 million in the second quarter of 2022. - Consumer originations in the second quarter of 2023 were
$97.2 million , compared to$110.6 million in the first quarter of 2023, and$130.8 million in the second quarter of 2022. - Residential loans originated for sale in the secondary market totaled
$19.1 million in the second quarter of 2023, compared to$13.9 million in the first quarter of 2023, and$42.7 million in the second quarter of 2022. - Closed residential loans retained in the portfolio totaled
$85.3 million in the second quarter of 2023, compared to$90.1 million in the first quarter of 2023, and$103.0 million in the second quarter of 2022.
- Commercial originations were
- Pipelines (loans in underwriting and approval or approved and not yet closed) totaled
$284.6 million onJune 30, 2023 , a decrease of 27% fromMarch 31, 2023 , and a decrease of 54% fromJune 30, 2022 .- Commercial pipelines were
$217.6 million as ofJune 30, 2023 , a decrease of 27% from$297.4 million atMarch 31, 2023 , and a decrease of 54% from$476.7 million atJune 30, 2022 . The decline in pipeline quarter over quarter was the result of the impact of higher rates and a continued selective approach on new credit facilities given a cautious economic outlook. - Consumer pipelines were
$28.4 million as ofJune 30, 2023 , a decrease of$10.3 million from$38.7 million atMarch 31, 2023 , and a decrease of 62% from$75.5 million atJune 30, 2022 . - Residential saleable pipelines were
$11.5 million as ofJune 30, 2023 , compared to$6.6 million atMarch 31, 2023 , and$14.7 million atJune 30, 2022 . Retained residential pipelines were$27.1 million as ofJune 30, 2023 , compared to$48.4 million atMarch 31, 2023 , and$53.1 million atJune 30, 2022 .
- Commercial pipelines were
- Total deposits were
$12.3 billion as ofJune 30, 2023 , a decrease of$26.4 million when compared toMarch 31, 2023 , and an increase of$3.1 billion , or 34%, compared toJune 30, 2022 . Seacoast’s granular, longstanding deposit base is a hallmark of our franchise, and in the current environment serves as a significant source of strength. The Company continues to maintain balance sheet flexibility and ended the quarter with a loan to deposit ratio of 82%.- At
June 30, 2023 , transaction account balances represented 57% of overall deposits. - Noninterest bearing demand deposits represent 34% of overall deposits.
- Average deposits per banking center were
$157 million atJune 30, 2023 compared to$148 million atMarch 31, 2023 . - Uninsured deposits represented only 34% of overall deposit accounts as of
June 30, 2023 . This includes public funds under theFlorida Qualified Public Depository program, which provides loss protection to depositors beyondFDIC insurance limits. Excluding such balances, the uninsured and uncollateralized deposits were 28% of total deposits. The Company has liquidity sources including cash and lines of credit with theFederal Reserve andFederal Home Loan Bank that represent 155% of uninsured deposits, and 184% of uninsured and uncollateralized deposits. - Consumer deposits represent 43% of overall deposit funding with an average consumer customer balance of $23 thousand. Commercial deposits represent 57% of overall deposit funding with an average business customer balance of $109 thousand.
- At
Federal Home Loan Bank advances totaled$160.0 million atJune 30, 2023 with a weighted average interest rate of 3.64%. In the aggregate, borrowed funds, including FHLB advances, subordinated debt, and brokered deposits represented only 6.6% of total liabilities as ofJune 30, 2023 .
Asset Quality
- Credit metrics remain strong with charge-offs, non-accruals, and criticized assets at historically low levels. The Company remains diligent in its monitoring of these metrics, as well as changes in the broader economic environment.
- Nonperforming loans were
$48.3 million atJune 30, 2023 . Nonperforming loans to total loans outstanding were 0.48% atJune 30, 2023 , 0.50% atMarch 31, 2023 , and 0.40% atJune 30, 2022 . - Nonperforming assets to total assets decreased to 0.37% at
June 30, 2023 , compared to 0.38% atMarch 31, 2023 , and increased from 0.27% atJune 30, 2022 . - The ratio of allowance for credit losses to total loans was 1.58% at
June 30, 2023 , 1.54% atMarch 31, 2023 , and 1.39% atJune 30, 2022 . - Net charge-offs of
$0.7 million for the second quarter of 2023 compared to$3.2 million in the first quarter of 2023 and compared to a net recovery of$0.1 million in the second quarter of 2022. Net charge-offs for the four most recent quarters averaged 0.06%. - 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. Seacoast’s average loan size is
$278 thousand , and the average commercial loan size is$685 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 52% and 256% of total bank-level risk-based capital, respectively, compared to 48% and 258%, respectively, at
March 31, 2023 . On a consolidated basis, construction and land development and commercial real estate loans represent 47% and 236%, respectively, of total consolidated risk-based capital.
Capital and Liquidity
- The Company continues to operate with a fortress balance sheet with a tier 1 capital ratio at
June 30, 2023 of 13.9% compared to 13.4% atMarch 31, 2023 , and 16.8% atJune 30, 2022 . The total capital ratio was 15.0%, the common equity tier 1 capital ratio was 12.9%, and the tier 1 leverage ratio was 10.8% atJune 30, 2023 . The Company is considered “well capitalized” based on applicableU.S. regulatory capital ratio requirements. - In
April 2023 , the Company announced an increase to its common share dividend by$0.01 to$0.18 per share. - Cash and cash equivalents at
June 30, 2023 totaled$727.9 million . - Our Board of Directors has approved a share repurchase program of up to
$100 million in shares of the Company’s common stock. During the second quarter of 2023, 2,515 shares were repurchased under the program at a weighted average price of$17.99 per share. - The Company’s loan to deposit ratio was 82% at
June 30, 2023 , providing liquidity and flexibility moving forward. - Tangible common equity to tangible assets was 8.53% at
June 30, 2023 , compared to 8.36% atMarch 31, 2023 , and 9.74% atJune 30, 2022 . If all held-to-maturity securities were adjusted to fair value, the tangible common equity ratio would have been 7.87%. - At
June 30, 2023 , in addition to$727.9 million in cash, the Company had$5 .7 billion in available borrowing capacity, including$4.7 billion in available collateralized lines of credit,$0.7 billion of unpledged debt securities available as collateral for potential additional borrowings, and available unsecured lines of credit of$0.3 billion . These liquidity sources as ofJune 30, 2023 represented 184% of uninsured and uncollateralized deposits.
FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
(Amounts in thousands except per share data) | (Unaudited) | |||||||||||||||||||
Quarterly Trends | ||||||||||||||||||||
2Q’23 | 1Q’23 | 4Q’22 | 3Q’22 | 2Q’22 | ||||||||||||||||
Selected balance sheet data: | ||||||||||||||||||||
Gross loans | $ | 10,117,919 | $ | 10,134,395 | $ | 8,144,724 | $ | 6,690,845 | $ | 6,541,548 | ||||||||||
Total deposits | 12,283,267 | 12,309,701 | 9,981,595 | 8,765,414 | 9,188,953 | |||||||||||||||
Total assets | 15,041,932 | 15,255,408 | 12,145,762 | 10,345,235 | 10,811,704 | |||||||||||||||
Performance measures: | ||||||||||||||||||||
Net income | $ | 31,249 | $ | 11,827 | $ | 23,927 | $ | 29,237 | $ | 32,755 | ||||||||||
Net interest margin | 3.86 | % | 4.31 | % | 4.36 | % | 3.67 | % | 3.38 | % | ||||||||||
Pre-tax pre-provision earnings1 | 40,864 | 46,321 | 45,999 | 43,143 | 42,580 | |||||||||||||||
Average diluted shares outstanding | 85,536 | 80,717 | 71,374 | 61,961 | 61,923 | |||||||||||||||
Diluted earnings per share (EPS) | $ | 0.37 | $ | 0.15 | $ | 0.34 | $ | 0.47 | $ | 0.53 | ||||||||||
Return on (annualized): | ||||||||||||||||||||
Average assets (ROA) | 0.84 | % | 0.34 | % | 0.78 | % | 1.10 | % | 1.21 | % | ||||||||||
Average tangible assets (ROTA)2 | 1.06 | 0.52 | 0.94 | 1.17 | 1.29 | |||||||||||||||
Average tangible common equity (ROTCE)2 | 12.08 | 5.96 | 10.36 | 11.53 | 13.01 | |||||||||||||||
Tangible common equity to tangible assets2 | 8.53 | 8.36 | 9.08 | 9.79 | 9.74 | |||||||||||||||
Tangible book value per share2 | $ | 14.24 | $ | 14.25 | $ | 14.69 | $ | 15.98 | $ | 16.66 | ||||||||||
Efficiency ratio | 67.34 | % | 65.43 | % | 63.39 | % | 57.13 | % | 56.22 | % | ||||||||||
Adjusted operating measures1: | ||||||||||||||||||||
Adjusted net income | $ | 49,203 | $ | 29,241 | $ | 39,926 | $ | 32,837 | $ | 36,327 | ||||||||||
Adjusted pre-tax pre-provision earnings | 64,856 | 71,081 | 66,649 | 48,989 | 46,397 | |||||||||||||||
Adjusted diluted EPS | 0.58 | 0.36 | 0.56 | 0.53 | 0.59 | |||||||||||||||
Adjusted ROTA2 | 1.41 | % | 0.90 | % | 1.36 | % | 1.27 | % | 1.38 | % | ||||||||||
Adjusted ROTCE2 | 16.08 | 10.34 | 15.05 | 12.48 | 13.97 | |||||||||||||||
Adjusted efficiency ratio | 56.44 | 53.10 | 51.52 | 53.28 | 53.15 | |||||||||||||||
Net adjusted noninterest expense as a percent of average tangible assets2 | 2.40 | 2.47 | 2.42 | 2.16 | 2.00 | |||||||||||||||
Other data: | ||||||||||||||||||||
Market capitalization3 | $ | 1,880,407 | $ | 2,005,241 | $ | 2,233,761 | $ | 1,858,429 | $ | 2,028,996 | ||||||||||
Full-time equivalent employees | 1,670 | 1,650 | 1,490 | 1,156 | 1,095 | |||||||||||||||
Number of ATMs | 96 | 97 | 100 | 79 | 79 | |||||||||||||||
Full-service banking offices | 78 | 83 | 78 | 58 | 58 | |||||||||||||||
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. | ||||||||||||||||||||
OTHER INFORMATION
Conference Call Information
Seacoast will host a conference call
About
Chief Financial Officer
(772) 403-0461
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 (the “Exchange Act”), 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 to reported earnings that may be realized from cost controls, tax law changes, new initiatives and for integration of banks that the Company has acquired, including
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
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. 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 inflationary pressures, changes in interest rates, 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 the recent adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; governmental monetary and fiscal policies, including interest rate policies of the
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
FINANCIAL HIGHLIGHTS | (Unaudited) | ||||||||||||||||||||||
SEACOAST BANKING CORPORATION OF | |||||||||||||||||||||||
Quarterly Trends | Six Months Ended | ||||||||||||||||||||||
(Amounts in thousands, except ratios and per share data) | 2Q’23 | 1Q’23 | 4Q’22 | 3Q’22 | 2Q’22 | 2Q’23 | 2Q’22 | ||||||||||||||||
Summary of Earnings | |||||||||||||||||||||||
Net income | $ | 31,249 | $ | 11,827 | $ | 23,927 | $ | 29,237 | $ | 32,755 | $ | 43,076 | $ | 53,343 | |||||||||
Adjusted net income1 | 49,203 | 29,241 | 39,926 | 32,837 | 36,327 | 78,444 | 63,383 | ||||||||||||||||
Net interest income2 | 127,153 | 131,351 | 119,858 | 88,399 | 81,764 | 258,504 | 158,403 | ||||||||||||||||
Net interest margin2,3 | 3.86 | % | 4.31 | % | 4.36 | % | 3.67 | % | 3.38 | % | 4.09 | % | 3.32 | % | |||||||||
Pre-tax pre-provision earnings1 | 40,864 | 46,321 | 45,999 | 43,143 | 42,580 | 87,185 | 75,675 | ||||||||||||||||
Adjusted pre-tax pre-provision earnings1 | 64,856 | 71,081 | 66,649 | 48,989 | 46,397 | 135,937 | 88,134 | ||||||||||||||||
Performance Ratios | |||||||||||||||||||||||
Return on average assets-GAAP basis3 | 0.84 | % | 0.34 | % | 0.78 | % | 1.10 | % | 1.21 | % | 0.60 | % | 1.00 | % | |||||||||
Return on average tangible assets-GAAP basis3,4 | 1.06 | 0.52 | 0.94 | 1.17 | 1.29 | 0.80 | 1.07 | ||||||||||||||||
Adjusted return on average tangible assets1,3,4 | 1.41 | 0.90 | 1.36 | 1.27 | 1.38 | 1.16 | 1.23 | ||||||||||||||||
Pre-tax pre-provision return on average tangible assets1,3,4 | 1.33 | 1.58 | 1.69 | 1.71 | 1.66 | 1.45 | 1.51 | ||||||||||||||||
Adjusted pre-tax pre-provision return on average tangible assets1,3,4 | 1.85 | 2.18 | 2.28 | 1.89 | 1.77 | 2.01 | 1.70 | ||||||||||||||||
Net adjusted noninterest expense to average tangible assets1,3,4 | 2.40 | 2.47 | 2.42 | 2.16 | 2.00 | 2.44 | 2.00 | ||||||||||||||||
Return on average shareholders’ equity-GAAP basis3 | 6.05 | 2.53 | 6.03 | 8.60 | 9.73 | 4.38 | 7.82 | ||||||||||||||||
Return on average tangible common equity-GAAP basis3,4 | 12.08 | 5.96 | 10.36 | 11.53 | 13.01 | 9.14 | 10.46 | ||||||||||||||||
Adjusted return on average tangible common equity1,3,4 | 16.08 | 10.34 | 15.05 | 12.48 | 13.97 | 13.32 | 11.95 | ||||||||||||||||
Efficiency ratio5 | 67.34 | 65.43 | 63.39 | 57.13 | 56.22 | 66.37 | 59.17 | ||||||||||||||||
Adjusted efficiency ratio1 | 56.44 | 53.10 | 51.52 | 53.28 | 53.15 | 54.76 | 53.97 | ||||||||||||||||
Noninterest income to total revenue (excluding securities gains/losses) | 14.63 | 14.55 | 12.84 | 15.72 | 17.45 | 14.59 | 17.30 | ||||||||||||||||
Tangible common equity to tangible assets4 | 8.53 | 8.36 | 9.08 | 9.79 | 9.74 | 8.53 | 9.74 | ||||||||||||||||
Average loan-to-deposit ratio | 83.48 | 82.43 | 77.67 | 73.90 | 70.60 | 82.98 | 70.92 | ||||||||||||||||
End of period loan-to-deposit ratio | 82.42 | 82.35 | 81.63 | 76.35 | 71.34 | 82.42 | 71.34 | ||||||||||||||||
Per Share Data | |||||||||||||||||||||||
Net income diluted-GAAP basis | $ 0.37 | ||||||||||||||||||||||
Net income basic-GAAP basis | 0.37 | 0.15 | 0.34 | 0.48 | 0.53 | 0.52 | 0.87 | ||||||||||||||||
Adjusted earnings1 | 0.58 | 0.36 | 0.56 | 0.53 | 0.59 | 0.94 | 1.03 | ||||||||||||||||
Book value per share common | 24.14 | 24.24 | 22.45 | 20.95 | 21.65 | 24.14 | 21.65 | ||||||||||||||||
Tangible book value per share | 14.24 | 14.25 | 14.69 | 15.98 | 16.66 | 14.24 | 16.66 | ||||||||||||||||
Cash dividends declared | 0.18 | 0.17 | 0.17 | 0.17 | 0.17 | 0.35 | 0.30 | ||||||||||||||||
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). | |||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | (Unaudited) | |||||||||||||||||||||
SEACOAST BANKING CORPORATION OF | ||||||||||||||||||||||
Quarterly Trends | Six Months Ended | |||||||||||||||||||||
(Amounts in thousands, except per share data) | 2Q’23 | 1Q’23 | 4Q’22 | 3Q’22 | 2Q’22 | 2Q’23 | 2Q’22 | |||||||||||||||
Interest on securities: | ||||||||||||||||||||||
Taxable | $ | 20,898 | $ | 19,244 | $ | 18,530 | $ | 15,653 | $ | 12,387 | $ | 40,142 | $ | 22,428 | ||||||||
Nontaxable | 97 | 105 | 130 | 138 | 138 | 202 | 278 | |||||||||||||||
Interest and fees on loans | 148,265 | 135,168 | 105,322 | 73,970 | 69,307 | 283,433 | 136,425 | |||||||||||||||
Interest on federal funds sold and other investments | 5,023 | 3,474 | 3,127 | 1,643 | 1,917 | 8,497 | 2,850 | |||||||||||||||
Total Interest Income | 174,283 | 157,991 | 127,109 | 91,404 | 83,749 | 332,274 | 161,981 | |||||||||||||||
Interest on deposits | 27,183 | 16,033 | 3,934 | 1,623 | 994 | 43,216 | 1,761 | |||||||||||||||
Interest on time certificates | 14,477 | 5,552 | 1,358 | 380 | 436 | 20,029 | 904 | |||||||||||||||
Interest on borrowed money | 5,660 | 5,254 | 2,108 | 1,117 | 672 | 10,914 | 1,147 | |||||||||||||||
Total Interest Expense | 47,320 | 26,839 | 7,400 | 3,120 | 2,102 | 74,159 | 3,812 | |||||||||||||||
Net Interest Income | 126,963 | 131,152 | 119,709 | 88,284 | 81,647 | 258,115 | 158,169 | |||||||||||||||
Provision for credit losses | (764 | ) | 31,598 | 14,129 | 4,676 | 822 | 30,834 | 7,378 | ||||||||||||||
Net Interest Income After Provision for Credit Losses | 127,727 | 99,554 | 105,580 | 83,608 | 80,825 | 227,281 | 150,791 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||||
Service charges on deposit accounts | 4,560 | 4,242 | 3,996 | 3,504 | 3,408 | 8,802 | 6,209 | |||||||||||||||
Interchange income | 5,066 | 4,694 | 4,650 | 4,138 | 4,255 | 9,760 | 8,383 | |||||||||||||||
Wealth management income | 3,318 | 3,063 | 2,886 | 2,732 | 2,774 | 6,381 | 5,433 | |||||||||||||||
Mortgage banking fees | 576 | 426 | 426 | 434 | 932 | 1,002 | 2,618 | |||||||||||||||
Insurance agency income | 1,160 | 1,101 | 805 | — | — | 2,261 | — | |||||||||||||||
SBA gains | 249 | 322 | 105 | 108 | 473 | 571 | 629 | |||||||||||||||
BOLI income | 2,068 | 1,916 | 1,526 | 1,363 | 1,349 | 3,984 | 2,683 | |||||||||||||||
Other | 4,755 | 6,574 | 3,239 | 4,186 | 4,073 | 11,329 | 7,134 | |||||||||||||||
21,752 | 22,338 | 17,633 | 16,465 | 17,264 | 44,090 | 33,089 | ||||||||||||||||
Securities (losses) gains, net | (176 | ) | 107 | 18 | (362 | ) | (300 | ) | (69 | ) | (752 | ) | ||||||||||
Total Noninterest Income | 21,576 | 22,445 | 17,651 | 16,103 | 16,964 | 44,021 | 32,337 | |||||||||||||||
Noninterest expenses: | ||||||||||||||||||||||
Salaries and wages | 45,155 | 47,616 | 45,405 | 28,420 | 28,056 | 92,771 | 56,275 | |||||||||||||||
Employee benefits | 7,472 | 8,562 | 5,300 | 4,074 | 4,151 | 16,034 | 9,652 | |||||||||||||||
Outsourced data processing costs | 20,222 | 14,553 | 9,918 | 5,393 | 6,043 | 34,775 | 12,199 | |||||||||||||||
Telephone / data lines | 1,518 | 1,081 | 1,185 | 973 | 908 | 2,599 | 1,641 | |||||||||||||||
Occupancy | 7,065 | 6,938 | 5,457 | 5,046 | 4,050 | 14,003 | 8,036 | |||||||||||||||
Furniture and equipment | 2,345 | 2,267 | 1,944 | 1,462 | 1,588 | 4,612 | 3,014 | |||||||||||||||
Marketing | 2,047 | 2,238 | 1,772 | 1,461 | 1,882 | 4,285 | 3,053 | |||||||||||||||
Legal and professional fees | 4,062 | 7,479 | 9,174 | 3,794 | 2,946 | 11,541 | 7,735 | |||||||||||||||
2,116 | 1,443 | 889 | 760 | 699 | 3,559 | 1,488 | ||||||||||||||||
Amortization of intangibles | 7,654 | 6,727 | 4,763 | 1,446 | 1,446 | 14,381 | 2,892 | |||||||||||||||
Foreclosed property expense and net (gain) loss on sale | (57 | ) | 195 | (411 | ) | 9 | (968 | ) | 138 | (1,132 | ) | |||||||||||
Provision for credit losses on unfunded commitments | — | 1,239 | — | 1015 | — | 1,239 | 142 | |||||||||||||||
Other | 8,266 | 7,137 | 6,114 | 7,506 | 5,347 | 15,403 | 10,070 | |||||||||||||||
Total Noninterest Expense | 107,865 | 107,475 | 91,510 | 61,359 | 56,148 | 215,340 | 115,065 | |||||||||||||||
Income Before Income Taxes | 41,438 | 14,524 | 31,721 | 38,352 | 41,641 | 55,962 | 68,063 | |||||||||||||||
Income taxes | 10,189 | 2,697 | 7,794 | 9,115 | 8,886 | 12,886 | 14,720 | |||||||||||||||
Net Income | $ | 31,249 | $ | 11,827 | $ | 23,927 | $ | 29,237 | $ | 32,755 | $ | 43,076 | $ | 53,343 | ||||||||
Per share of common stock: | ||||||||||||||||||||||
Net income diluted | $ | 0.37 | $ | 0.15 | $ | 0.34 | $ | 0.47 | $ | 0.53 | $ | 0.52 | $ | 0.86 | ||||||||
Net income basic | 0.37 | 0.15 | 0.34 | 0.48 | 0.53 | 0.52 | 0.87 | |||||||||||||||
Cash dividends declared | 0.18 | 0.17 | 0.17 | 0.17 | 0.17 | 0.35 | 0.30 | |||||||||||||||
Average diluted shares outstanding | 85,536 | 80,717 | 71,374 | 61,961 | 61,923 | 83,260 | 61,818 | |||||||||||||||
Average basic shares outstanding | 85,022 | 80,151 | 70,770 | 61,442 | 61,409 | 82,600 | 61,269 | |||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | (Unaudited) | ||||||||||||||||||
SEACOAST BANKING CORPORATION OF | |||||||||||||||||||
(Amounts in thousands) | 2023 | 2023 | 2022 | 2022 | 2022 | ||||||||||||||
Assets | |||||||||||||||||||
Cash and due from banks | $ | 164,193 | $ | 180,607 | $ | 120,748 | $ | 176,463 | $ | 363,343 | |||||||||
Interest bearing deposits with other banks | 563,690 | 610,636 | 81,192 | 42,152 | 538,025 | ||||||||||||||
Total Cash and Cash Equivalents | 727,883 | 791,243 | 201,940 | 218,615 | 901,368 | ||||||||||||||
Time deposits with other banks | 2,987 | 3,236 | 3,236 | 4,481 | 4,730 | ||||||||||||||
Available for sale (at fair value) | 1,916,231 | 2,015,967 | 1,871,742 | 1,860,734 | 1,800,791 | ||||||||||||||
Held to maturity (at amortized cost) | 707,812 | 737,911 | 747,408 | 774,706 | 794,785 | ||||||||||||||
2,624,043 | 2,753,878 | 2,619,150 | 2,635,440 | 2,595,576 | |||||||||||||||
Loans held for sale | 5,967 | 2,838 | 3,151 | 1,620 | 14,205 | ||||||||||||||
Loans | 10,117,919 | 10,134,395 | 8,144,724 | 6,690,845 | 6,541,548 | ||||||||||||||
Less: Allowance for credit losses | (159,715 | ) | (155,640 | ) | (113,895 | ) | (95,329 | ) | (90,769 | ) | |||||||||
Net Loans | 9,958,204 | 9,978,755 | 8,030,829 | 6,595,516 | 6,450,779 | ||||||||||||||
Bank premises and equipment, net | 116,959 | 116,522 | 116,892 | 81,648 | 74,784 | ||||||||||||||
Other real estate owned | 7,526 | 7,756 | 2,301 | 2,419 | 2,419 | ||||||||||||||
732,910 | 728,396 | 480,319 | 286,606 | 286,606 | |||||||||||||||
Other intangible assets, net | 109,716 | 117,409 | 75,451 | 18,583 | 20,062 | ||||||||||||||
Bank owned life insurance | 293,880 | 292,545 | 237,824 | 209,087 | 207,724 | ||||||||||||||
Net deferred tax assets | 127,941 | 124,301 | 94,457 | 83,139 | 60,080 | ||||||||||||||
Other assets | 333,916 | 338,529 | 280,212 | 208,081 | 193,371 | ||||||||||||||
Total Assets | $ | 15,041,932 | $ | 15,255,408 | $ | 12,145,762 | $ | 10,345,235 | $ | 10,811,704 | |||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Deposits | |||||||||||||||||||
Noninterest demand | $ | 4,139,052 | $ | 4,554,509 | $ | 4,070,973 | $ | 3,529,489 | $ | 3,593,201 | |||||||||
Interest-bearing demand | 2,816,656 | 2,676,320 | 2,337,590 | 2,170,251 | 2,269,148 | ||||||||||||||
Savings | 824,255 | 940,702 | 1,064,392 | 938,081 | 946,738 | ||||||||||||||
Money market | 2,859,164 | 2,893,128 | 1,985,974 | 1,700,737 | 1,911,847 | ||||||||||||||
Other time certificates | 628,036 | 598,483 | 369,389 | 312,840 | 350,571 | ||||||||||||||
Brokered time certificates | 591,503 | 371,392 | 3,798 | — | — | ||||||||||||||
Time certificates of more than | 424,601 | 275,167 | 149,479 | 114,016 | 117,448 | ||||||||||||||
Total Deposits | 12,283,267 | 12,309,701 | 9,981,595 | 8,765,414 | 9,188,953 | ||||||||||||||
Securities sold under agreements to repurchase | 290,156 | 267,606 | 172,029 | 94,191 | 110,578 | ||||||||||||||
160,000 | 385,000 | 150,000 | — | — | |||||||||||||||
Subordinated debt, net | 105,970 | 105,804 | 84,533 | 71,857 | 71,786 | ||||||||||||||
Other liabilities | 148,507 | 136,213 | 149,830 | 125,971 | 110,812 | ||||||||||||||
Total Liabilities | 12,987,900 | 13,204,324 | 10,537,987 | 9,057,433 | 9,482,129 | ||||||||||||||
Shareholders’ Equity | |||||||||||||||||||
Common stock | 8,509 | 8,461 | 7,162 | 6,148 | 6,141 | ||||||||||||||
Additional paid in capital | 1,809,431 | 1,803,898 | 1,377,802 | 1,068,241 | 1,065,167 | ||||||||||||||
Retained earnings | 437,087 | 421,271 | 423,863 | 412,166 | 393,431 | ||||||||||||||
(14,171 | ) | (13,113 | ) | (13,019 | ) | (11,539 | ) | (11,632 | ) | ||||||||||
2,240,856 | 2,220,517 | 1,795,808 | 1,475,016 | 1,453,107 | |||||||||||||||
Accumulated other comprehensive (loss) income, net | (186,824 | ) | (169,433 | ) | (188,033 | ) | (187,214 | ) | (123,532 | ) | |||||||||
Total Shareholders’ Equity | 2,054,032 | 2,051,084 | 1,607,775 | 1,287,802 | 1,329,575 | ||||||||||||||
Total Liabilities & Shareholders’ Equity | $ | 15,041,932 | $ | 15,255,408 | $ | 12,145,762 | $ | 10,345,235 | $ | 10,811,704 | |||||||||
Common shares outstanding | 85,086 | 84,609 | 71,618 | 61,476 | 61,410 | ||||||||||||||
CONSOLIDATED QUARTERLY FINANCIAL DATA | (Unaudited) | ||||||||||||||||||||
SEACOAST BANKING CORPORATION OF | |||||||||||||||||||||
(Amounts in thousands) | 2Q’23 | 1Q’23 | 4Q’22 | 3Q’22 | 2Q’22 | ||||||||||||||||
Credit Analysis | |||||||||||||||||||||
Net charge-offs (recoveries) | $ | 705 | $ | 3,188 | $ | 782 | $ | 103 | $ | (124 | ) | ||||||||||
Net charge-offs (recoveries) to average loans | 0.03 | % | 0.14 | % | 0.04 | % | 0.01 | % | — | % | |||||||||||
Allowance for credit losses | 159,715 | 155,640 | 113,895 | 95,329 | 90,769 | ||||||||||||||||
Non-acquired loans at end of period | 6,264,044 | 6,048,453 | 5,944,194 | 5,653,357 | 5,399,923 | ||||||||||||||||
Acquired loans at end of period | 3,853,875 | 4,085,942 | 2,200,530 | 1,037,488 | 1,141,625 | ||||||||||||||||
Total Loans | $ | 10,117,919 | $ | 10,134,395 | $ | 8,144,724 | $ | 6,690,845 | $ | 6,541,548 | |||||||||||
Total allowance for credit losses to total loans at end of period | 1.58 | 1.54 | 1.40 | 1.42 | 1.39 | ||||||||||||||||
Purchase discount on acquired loans at end of period | 4.98 | 5.02 | 4.25 | 1.81 | 1.84 | ||||||||||||||||
End of Period | |||||||||||||||||||||
Nonperforming loans | $ | 48,326 | $ | 50,787 | $ | 28,843 | $ | 21,464 | $ | 26,442 | |||||||||||
Other real estate owned | 530 | 530 | 530 | 109 | 109 | ||||||||||||||||
Properties previously used in bank operations included in other real estate owned | 6,996 | 7,226 | 1,771 | 2,310 | 2,310 | ||||||||||||||||
Total Nonperforming Assets | $ | 55,852 | $ | 58,543 | $ | 31,144 | $ | 23,883 | $ | 28,861 | |||||||||||
Nonperforming Loans to Loans at End of Period | 0.48 | % | 0.50 | % | 0.35 | % | 0.32 | % | 0.40 | % | |||||||||||
Nonperforming Assets to Total Assets at End of Period | 0.37 | 0.38 | 0.26 | 0.23 | 0.27 | ||||||||||||||||
Loans | 2023 | 2023 | 2022 | 2022 | 2022 | ||||||||||||||||
Construction and land development | $ | 794,371 | $ | 757,835 | $ | 587,332 | $ | 361,913 | $ | 350,025 | |||||||||||
Commercial real estate - owner occupied | 1,669,369 | 1,652,491 | 1,478,302 | 1,253,459 | 1,254,343 | ||||||||||||||||
Commercial real estate - non-owner occupied 1 | 3,370,211 | 3,412,051 | 2,589,774 | 2,107,614 | 1,972,540 | ||||||||||||||||
Residential real estate 1 | 2,396,352 | 2,354,394 | 1,849,503 | 1,599,765 | 1,647,465 | ||||||||||||||||
Commercial and financial | 1,610,895 | 1,650,485 | 1,348,636 | 1,182,384 | 1,124,771 | ||||||||||||||||
Consumer | 272,082 | 301,740 | 286,587 | 180,416 | 175,201 | ||||||||||||||||
Paycheck Protection Program | 4,639 | 5,399 | 4,590 | 5,294 | 17,203 | ||||||||||||||||
Total Loans | $ | 10,117,919 | $ | 10,134,395 | $ | 8,144,724 | $ | 6,690,845 | $ | 6,541,548 | |||||||||||
1 In 3Q’22, | |||||||||||||||||||||
AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1 | (Unaudited) | |||||||||||||||||||||||||||||
SEACOAST BANKING CORPORATION OF | ||||||||||||||||||||||||||||||
2Q’23 | 1Q’23 | 2Q’22 | ||||||||||||||||||||||||||||
Average | Yield/ | Average | Yield/ | Average | Yield/ | |||||||||||||||||||||||||
(Amounts in thousands) | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||
Earning assets: | ||||||||||||||||||||||||||||||
Securities: | ||||||||||||||||||||||||||||||
Taxable | $ | 2,673,633 | $ | 20,898 | 3.13 | % | $ | 2,700,122 | $ | 19,244 | 2.85 | % | $ | 2,517,879 | $ | 12,387 | 1.97 | % | ||||||||||||
Nontaxable | 15,621 | 120 | 3.08 | 16,271 | 131 | 3.22 | 22,443 | 175 | 3.12 | |||||||||||||||||||||
2,689,254 | 21,018 | 3.13 | 2,716,393 | 19,375 | 2.85 | 2,540,322 | 12,562 | 1.98 | ||||||||||||||||||||||
Federal funds sold | 327,433 | 4,313 | 5.28 | 106,778 | 1,294 | 4.91 | 644,144 | 1,281 | 0.80 | |||||||||||||||||||||
Interest bearing deposits with other banks and other investments | 90,783 | 710 | 3.14 | 178,463 | 2,180 | 4.95 | 46,257 | 636 | 5.51 | |||||||||||||||||||||
Loans excluding PPP loans | 10,096,394 | 148,420 | 5.90 | 9,363,873 | 135,329 | 5.86 | 6,454,444 | 68,647 | 4.27 | |||||||||||||||||||||
PPP loans | 4,834 | 12 | 1.00 | 5,328 | 12 | 0.91 | 26,322 | 741 | 11.29 | |||||||||||||||||||||
Total Loans | 10,101,228 | 148,432 | 5.89 | 9,369,201 | 135,341 | 5.86 | 6,480,766 | 69,388 | 4.29 | |||||||||||||||||||||
Total Earning Assets | 13,208,698 | 174,473 | 5.30 | 12,370,835 | 158,190 | 5.19 | 9,711,489 | 83,867 | 3.46 | |||||||||||||||||||||
Allowance for credit losses | (156,207 | ) | (139,989 | ) | (90,242 | ) | ||||||||||||||||||||||||
Cash and due from banks | 165,625 | 156,235 | 389,695 | |||||||||||||||||||||||||||
Premises and equipment | 117,726 | 116,083 | 74,614 | |||||||||||||||||||||||||||
Intangible assets | 842,988 | 750,694 | 307,411 | |||||||||||||||||||||||||||
Bank owned life insurance | 293,251 | 274,517 | 206,839 | |||||||||||||||||||||||||||
Other assets including deferred tax assets | 415,208 | 419,601 | 240,712 | |||||||||||||||||||||||||||
Total Assets | $ | 14,887,289 | $ | 13,947,976 | $ | 10,840,518 | ||||||||||||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||
Interest-bearing demand | $ | 2,666,314 | $ | 7,560 | 1.14 | % | $ | 2,452,113 | $ | 3,207 | 0.53 | % | $ | 2,262,408 | $ | 293 | 0.05 | % | ||||||||||||
Savings | 906,936 | 427 | 0.19 | 1,053,220 | 400 | 0.15 | 962,264 | 64 | 0.03 | |||||||||||||||||||||
Money market | 2,806,672 | 19,196 | 2.74 | 2,713,224 | 12,426 | 1.86 | 1,938,421 | 637 | 0.13 | |||||||||||||||||||||
Time deposits | 1,425,344 | 14,477 | 4.07 | 812,422 | 5,552 | 2.77 | 496,186 | 436 | 0.35 | |||||||||||||||||||||
Securities sold under agreements to repurchase | 244,824 | 1,593 | 2.61 | 173,498 | 864 | 2.02 | 120,437 | 94 | 0.31 | |||||||||||||||||||||
251,596 | 2,272 | 3.62 | 282,444 | 2,776 | 3.99 | — | — | — | ||||||||||||||||||||||
Subordinated debt | 105,861 | 1,795 | 6.80 | 98,425 | 1,614 | 6.65 | 71,740 | 579 | 3.24 | |||||||||||||||||||||
Total Interest-Bearing Liabilities | 8,407,547 | 47,320 | 2.26 | 7,585,346 | 26,839 | 1.43 | 5,851,456 | 2,103 | 0.14 | |||||||||||||||||||||
Noninterest demand | 4,294,251 | 4,334,969 | 3,520,700 | |||||||||||||||||||||||||||
Other liabilities | 114,962 | 130,616 | 117,794 | |||||||||||||||||||||||||||
Total Liabilities | 12,816,760 | 12,050,931 | 9,489,950 | |||||||||||||||||||||||||||
Shareholders’ equity | 2,070,529 | 1,897,045 | 1,350,568 | |||||||||||||||||||||||||||
Total Liabilities & Equity | ||||||||||||||||||||||||||||||
Cost of deposits | 1.38 | % | 0.77 | % | 0.06 | % | ||||||||||||||||||||||||
Interest expense as a % of earning assets | 1.44 | % | 0.88 | % | 0.09 | % | ||||||||||||||||||||||||
Net interest income as a % of earning assets | 3.86 | % | 4.31 | % | 3.38 | % | ||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||||
AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1 | (Unaudited) | |||||||||||||||||||
SEACOAST BANKING CORPORATION OF | ||||||||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||||||
Average | Yield/ | Average | Yield/ | |||||||||||||||||
(Amounts in thousands) | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||
Assets | ||||||||||||||||||||
Earning assets: | ||||||||||||||||||||
Securities: | ||||||||||||||||||||
Taxable | $ | 2,686,804 | $ | 40,142 | 2.99 | % | $ | 2,462,447 | $ | 22,428 | 1.82 | % | ||||||||
Nontaxable | 15,944 | 251 | 3.15 | 23,238 | 352 | 3.03 | ||||||||||||||
2,702,748 | 40,393 | 2.99 | 2,485,685 | 22,780 | 1.83 | |||||||||||||||
Federal funds sold | 228,491 | 5,787 | 5.11 | 691,105 | 1,631 | 0.48 | ||||||||||||||
Interest bearing deposits with other banks and other investments | 90,750 | 2,710 | 6.02 | 45,631 | 1,219 | 5.39 | ||||||||||||||
Loans excluding PPP loans | 9,732,156 | 283,749 | 5.88 | 6,366,194 | 134,322 | 4.25 | ||||||||||||||
PPP loans | 5,080 | 24 | 0.95 | 44,024 | 2,264 | 10.37 | ||||||||||||||
Total Loans | 9,737,236 | 283,773 | 5.88 | 6,410,218 | 136,586 | 4.30 | ||||||||||||||
Total Earning Assets | 12,759,225 | 332,663 | 5.26 | 9,632,639 | 162,216 | 3.40 | ||||||||||||||
Allowance for credit losses | (148,143 | ) | (88,862 | ) | ||||||||||||||||
Cash and due from banks | 193,811 | 377,831 | ||||||||||||||||||
Premises and equipment | 116,909 | 75,241 | ||||||||||||||||||
Intangible assets | 797,096 | 305,875 | ||||||||||||||||||
Bank owned life insurance | 283,936 | 206,173 | ||||||||||||||||||
Other assets including deferred tax assets | 417,393 | 226,205 | ||||||||||||||||||
Total Assets | $ | 14,420,227 | $ | 10,735,102 | ||||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Interest-bearing demand | $ | 2,559,805 | $ | 10,767 | 0.85 | % | $ | 2,180,351 | $ | 483 | 0.04 | % | ||||||||
Savings | 979,674 | 827 | 0.17 | 943,908 | 129 | 0.03 | ||||||||||||||
Money market | 2,760,207 | 31,622 | 2.31 | 1,957,435 | 1,149 | 0.12 | ||||||||||||||
Time deposits | 1,120,576 | 20,029 | 3.60 | 528,255 | 904 | 0.35 | ||||||||||||||
Securities sold under agreements to repurchase | 209,358 | 2,456 | 2.37 | 119,298 | 133 | 0.22 | ||||||||||||||
266,935 | 5,048 | 3.81 | — | — | — | |||||||||||||||
Subordinated debt | 102,164 | 3,410 | 6.73 | 71,706 | 1,015 | 2.85 | ||||||||||||||
Total Interest-Bearing Liabilities | 7,998,719 | 74,159 | 1.87 | 5,800,953 | 3,813 | 0.13 | ||||||||||||||
Noninterest demand | 4,314,498 | 3,428,921 | ||||||||||||||||||
Other liabilities | 122,746 | 129,815 | ||||||||||||||||||
Total Liabilities | 12,435,963 | 9,359,689 | ||||||||||||||||||
Shareholders’ equity | 1,984,264 | 1,375,413 | ||||||||||||||||||
Total Liabilities & Equity | ||||||||||||||||||||
Cost of deposits | 1.09 | % | 0.06 | % | ||||||||||||||||
Interest expense as a % of earning assets | 1.17 | % | 0.08 | % | ||||||||||||||||
Net interest income as a % of earning assets | 4.09 | % | 3.32 | % | ||||||||||||||||
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 | |||||||||||||||
(Amounts in thousands) | |||||||||||||||
Customer Relationship Funding | |||||||||||||||
Noninterest demand | |||||||||||||||
Commercial | $ | 3,304,761 | $ | 3,622,441 | $ | 3,148,778 | $ | 2,827,591 | $ | 2,945,445 | |||||
Retail | 615,536 | 673,686 | 764,274 | 447,848 | 464,214 | ||||||||||
Public funds | 152,159 | 194,977 | 112,553 | 210,662 | 143,075 | ||||||||||
Other | 66,596 | 63,405 | 45,368 | 43,388 | 40,467 | ||||||||||
Total Noninterest Demand | 4,139,052 | 4,554,509 | 4,070,973 | 3,529,489 | 3,593,201 | ||||||||||
Interest-bearing demand | |||||||||||||||
Commercial | 1,555,486 | 1,233,845 | 886,894 | 759,286 | 769,948 | ||||||||||
Retail | 1,058,993 | 1,209,664 | 1,191,192 | 1,199,112 | 1,207,698 | ||||||||||
Brokered | — | 44,474 | 54,777 | 81,799 | — | ||||||||||
Public funds | 202,177 | 188,337 | 204,727 | 130,054 | 291,502 | ||||||||||
Total Interest-Bearing Demand | 2,816,656 | 2,676,320 | 2,337,590 | 2,170,251 | 2,269,148 | ||||||||||
Total transaction accounts | |||||||||||||||
Commercial | 4,860,247 | 4,856,286 | 4,035,672 | 3,586,877 | 3,715,393 | ||||||||||
Retail | 1,674,529 | 1,883,350 | 1,955,466 | 1,646,960 | 1,671,912 | ||||||||||
Brokered | — | 44,474 | 54,777 | 81,799 | — | ||||||||||
Public funds | 354,336 | 383,314 | 317,280 | 340,716 | 434,577 | ||||||||||
Other | 66,596 | 63,405 | 45,368 | 43,388 | 40,467 | ||||||||||
Total Transaction Accounts | 6,955,708 | 7,230,829 | 6,408,563 | 5,699,740 | 5,862,349 | ||||||||||
Savings | |||||||||||||||
Commercial | 101,908 | 108,023 | 91,943 | 71,807 | 70,090 | ||||||||||
Retail | 722,347 | 832,679 | 972,449 | 866,274 | 876,648 | ||||||||||
Total Savings | 824,255 | 940,702 | 1,064,392 | 938,081 | 946,738 | ||||||||||
Money market | |||||||||||||||
Commercial | 1,426,348 | 1,542,220 | 932,518 | 788,009 | 819,452 | ||||||||||
Retail | 1,275,721 | 1,279,712 | 984,561 | 857,914 | 914,918 | ||||||||||
Brokered | — | — | — | — | 106,823 | ||||||||||
Public funds | 157,095 | 71,196 | 68,895 | 54,814 | 70,654 | ||||||||||
Total Money Market | 2,859,164 | 2,893,128 | 1,985,974 | 1,700,737 | 1,911,847 | ||||||||||
Brokered time certificates | 591,503 | 371,392 | 3,798 | — | — | ||||||||||
Other time certificates | 1,052,637 | 873,650 | 518,868 | 426,856 | 468,019 | ||||||||||
1,644,140 | 1,245,042 | 522,666 | 426,856 | 468,019 | |||||||||||
Total Deposits | |||||||||||||||
Customer sweep accounts | 290,156 | 267,606 | 172,029 | 94,191 | 110,578 | ||||||||||
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 | ||||||||||||||||||||||
Quarterly Trends | Six Months Ended | |||||||||||||||||||||
(Amounts in thousands, except per share data) | 2Q’23 | 1Q’23 | 4Q’22 | 3Q’22 | 2Q’22 | 2Q’23 | 2Q’22 | |||||||||||||||
Net Income | $ | 31,249 | $ | 11,827 | $ | 23,927 | $ | 29,237 | $ | 32,755 | $ | 43,076 | $ | 53,343 | ||||||||
Total noninterest income | 21,576 | 22,445 | 17,651 | 16,103 | 16,964 | 44,021 | 32,337 | |||||||||||||||
Securities losses (gains), net | 176 | (107 | ) | (18 | ) | 362 | 300 | 69 | 752 | |||||||||||||
BOLI benefits on death (included in other income) | — | (2,117 | ) | — | — | — | (2,117 | ) | — | |||||||||||||
Total Adjustments to Noninterest Income | 176 | (2,224 | ) | (18 | ) | 362 | 300 | (2,048 | ) | 752 | ||||||||||||
Total Adjusted Noninterest Income | 21,752 | 20,221 | 17,633 | 16,465 | 17,264 | 41,973 | 33,089 | |||||||||||||||
Total noninterest expense | 107,865 | 107,475 | 91,510 | 61,359 | 56,148 | 215,340 | 115,065 | |||||||||||||||
Salaries and wages | (1,573 | ) | (4,240 | ) | (5,680 | ) | — | (652 | ) | (5,813 | ) | (3,605 | ) | |||||||||
Outsourced data processing costs | (10,904 | ) | (6,551 | ) | (2,582 | ) | — | (420 | ) | (17,455 | ) | (1,052 | ) | |||||||||
Legal and professional fees | (1,664 | ) | (4,789 | ) | (6,485 | ) | (1,791 | ) | (1,381 | ) | (6,453 | ) | (4,272 | ) | ||||||||
Other categories | (1,507 | ) | (1,952 | ) | (1,393 | ) | (263 | ) | (586 | ) | (3,459 | ) | (802 | ) | ||||||||
Total merger related charges | (15,648 | ) | (17,532 | ) | (16,140 | ) | (2,054 | ) | (3,039 | ) | (33,180 | ) | (9,731 | ) | ||||||||
Amortization of intangibles | (7,654 | ) | (6,727 | ) | (4,763 | ) | (1,446 | ) | (1,446 | ) | (14,381 | ) | (2,892 | ) | ||||||||
Branch reductions and other expense initiatives | (571 | ) | (1,291 | ) | (176 | ) | (960 | ) | — | (1,862 | ) | (74 | ) | |||||||||
Total Adjustments to Noninterest Expense | (23,873 | ) | (25,550 | ) | (21,079 | ) | (4,460 | ) | (4,485 | ) | (49,423 | ) | (12,697 | ) | ||||||||
Total Adjusted Noninterest Expense | 83,992 | 81,925 | 70,431 | 56,899 | 51,663 | 165,917 | 102,368 | |||||||||||||||
Income Taxes | 10,189 | 2,697 | 7,794 | 9,115 | 8,886 | 12,886 | 14,720 | |||||||||||||||
Tax effect of adjustments | 6,095 | 5,912 | 5,062 | 1,222 | 1,213 | 12,007 | 3,409 | |||||||||||||||
Adjusted Income Taxes | 16,284 | 8,609 | 12,856 | 10,337 | 10,099 | 24,893 | 18,129 | |||||||||||||||
Adjusted Net Income | $ | 49,203 | $ | 29,241 | $ | 39,926 | $ | 32,837 | $ | 36,327 | $ | 78,444 | $ | 63,383 | ||||||||
Earnings per diluted share, as reported | $ | 0.37 | $ | 0.15 | $ | 0.34 | $ | 0.47 | $ | 0.53 | $ | 0.52 | $ | 0.86 | ||||||||
Adjusted Earnings per Diluted Share | 0.58 | 0.36 | 0.56 | 0.53 | 0.59 | 0.94 | 1.03 | |||||||||||||||
Average diluted shares outstanding | 85,536 | 80,717 | 71,374 | 61,961 | 61,923 | 83,260 | 61,818 | |||||||||||||||
Adjusted Noninterest Expense | $ | 83,992 | $ | 81,925 | $ | 70,431 | $ | 56,899 | $ | 51,663 | $ | 165,917 | $ | 102,368 | ||||||||
Provision for credit losses on unfunded commitments | — | (1,239 | ) | — | (1,015 | ) | — | (1,239 | ) | (142 | ) | |||||||||||
Foreclosed property expense and net loss (gain) on sale | 57 | (195 | ) | 411 | (9 | ) | 968 | (138 | ) | 1,132 | ||||||||||||
Net Adjusted Noninterest Expense | $ | 84,049 | $ | 80,491 | $ | 70,842 | $ | 55,875 | $ | 52,631 | $ | 164,540 | $ | 103,358 | ||||||||
Revenue | $ | 148,539 | $ | 153,597 | $ | 137,360 | $ | 104,387 | $ | 98,611 | $ | 302,136 | $ | 190,506 | ||||||||
Total Adjustments to Revenue | 176 | (2,224 | ) | (18 | ) | 362 | 300 | (2,048 | ) | 752 | ||||||||||||
Impact of FTE adjustment | 190 | 199 | 149 | 115 | 117 | 389 | 234 | |||||||||||||||
Adjusted Revenue on a fully taxable equivalent basis | $ | 148,905 | $ | 151,572 | $ | 137,491 | $ | 104,864 | $ | 99,028 | $ | 300,477 | $ | 191,492 | ||||||||
Adjusted Efficiency Ratio | 56.44 | % | 53.10 | % | 51.52 | % | 53.28 | % | 53.15 | % | 54.76 | % | 53.97 | % | ||||||||
Net Interest Income | $ | 126,963 | $ | 131,152 | $ | 119,709 | $ | 88,284 | $ | 81,647 | $ | 258,115 | $ | 158,169 | ||||||||
Impact of FTE adjustment | 190 | 199 | 149 | 115 | 117 | 389 | 234 | |||||||||||||||
Net Interest Income including FTE adjustment | $ | 127,153 | $ | 131,351 | $ | 119,858 | $ | 88,399 | $ | 81,764 | $ | 258,504 | $ | 158,403 | ||||||||
Total noninterest income | 21,576 | 22,445 | 17,651 | 16,103 | 16,964 | 44,021 | 32,337 | |||||||||||||||
Total noninterest expense | 107,865 | 107,475 | 91,510 | 61,359 | 56,148 | 215,340 | 115,065 | |||||||||||||||
Pre-Tax Pre-Provision Earnings | $ | 40,864 | $ | 46,321 | $ | 45,999 | $ | 43,143 | $ | 42,580 | $ | 87,185 | $ | 75,675 | ||||||||
Total Adjustments to Noninterest Income | 176 | (2,224 | ) | (18 | ) | 362 | 300 | (2,048 | ) | 752 | ||||||||||||
Total Adjustments to Noninterest Expense | (23,816 | ) | (26,984 | ) | (20,668 | ) | (5,484 | ) | (3,517 | ) | (50,800 | ) | (11,707 | ) | ||||||||
Adjusted Pre-Tax Pre-Provision Earnings | $ | 64,856 | $ | 71,081 | $ | 66,649 | $ | 48,989 | $ | 46,397 | $ | 135,937 | $ | 88,134 | ||||||||
Average Assets | $ | 14,887,289 | $ | 13,947,976 | $ | 12,139,856 | $ | 10,585,338 | $ | 10,840,518 | $ | 14,420,227 | $ | 10,735,102 | ||||||||
Less average goodwill and intangible assets | (842,988 | ) | (750,694 | ) | (521,412 | ) | (305,935 | ) | (307,411 | ) | (797,096 | ) | (305,875 | ) | ||||||||
Average Tangible Assets | $ | 14,044,301 | $ | 13,197,282 | $ | 11,618,444 | $ | 10,279,403 | $ | 10,533,107 | $ | 13,623,131 | $ | 10,429,227 | ||||||||
GAAP TO NON-GAAP RECONCILIATION | (Unaudited) | |||||||||||||||||||||
SEACOAST BANKING CORPORATION OF | ||||||||||||||||||||||
Quarterly Trends | Six Months Ended | |||||||||||||||||||||
(Amounts in thousands, except per share data) | 2Q’23 | 1Q’23 | 4Q’22 | 3Q’22 | 2Q’22 | 2Q’23 | 2Q’22 | |||||||||||||||
Return on Average Assets (ROA) | 0.84 | % | 0.34 | % | 0.78 | % | 1.10 | % | 1.21 | % | 0.60 | % | 1.00 | % | ||||||||
Impact of removing average intangible assets and related amortization | 0.22 | 0.18 | 0.16 | 0.07 | 0.08 | 0.20 | 0.07 | |||||||||||||||
Return on Average Tangible Assets (ROTA) | 1.06 | 0.52 | 0.94 | 1.17 | 1.29 | 0.80 | 1.07 | |||||||||||||||
Impact of other adjustments for Adjusted Net Income | 0.35 | 0.38 | 0.42 | 0.10 | 0.09 | 0.36 | 0.16 | |||||||||||||||
Adjusted Return on Average Tangible Assets | 1.41 | 0.09 | 1.36 | 1.27 | 1.38 | 1.16 | 1.23 | |||||||||||||||
Pre-Tax Pre-Provision return on Average Tangible Assets | 1.33 | % | 1.58 | % | 1.69 | % | 1.71 | % | 1.66 | % | 1.45 | % | 1.51 | % | ||||||||
Impact of adjustments on Pre-Tax Pre-Provision earnings | 0.52 | 0.60 | 0.59 | 0.18 | 0.11 | 0.56 | 0.19 | |||||||||||||||
Adjusted Pre-Tax Pre-Provision Return on Tangible Assets | 1.85 | 2.18 | 2.28 | 1.89 | 1.77 | 2.01 | 1.70 | |||||||||||||||
Average Shareholders’ Equity | $ | 2,070,529 | $ | 1,897,045 | $ | 1,573,704 | $ | 1,349,475 | $ | 1,350,568 | $ | 1,984,264 | $ | 1,375,413 | ||||||||
Less average goodwill and intangible assets | (842,988 | ) | (750,694 | ) | (521,412 | ) | (305,935 | ) | (307,411 | ) | (797,096 | ) | (305,875 | ) | ||||||||
Average Tangible Equity | $ | 1,227,541 | $ | 1,146,351 | $ | 1,052,292 | $ | 1,043,540 | $ | 1,043,157 | $ | 1,187,168 | $ | 1,069,538 | ||||||||
Return on Average Shareholders’ Equity | 6.05 | % | 2.53 | % | 6.03 | % | 8.60 | % | 9.73 | % | 4.38 | % | 7.82 | % | ||||||||
Impact of removing average intangible assets and related amortization | 6.03 | 3.43 | 4.33 | 2.93 | 3.28 | 4.76 | 2.64 | |||||||||||||||
Return on Average Tangible Common Equity (ROTCE) | 12.08 | 5.96 | 10.36 | 11.53 | 13.01 | 9.14 | 10.46 | |||||||||||||||
Impact of other adjustments for Adjusted Net Income | 4.00 | 4.38 | 4.69 | 0.95 | 0.96 | 4.18 | 1.49 | |||||||||||||||
Adjusted Return on Average Tangible Common Equity | 16.08 | 10.34 | 15.05 | 12.48 | 13.97 | 13.32 | 11.95 | |||||||||||||||
Loan interest income1 | $ | 148,432 | $ | 135,341 | $ | 105,437 | $ | 74,050 | $ | 69,388 | $ | 283,773 | $ | 136,586 | ||||||||
Accretion on acquired loans | (14,191 | ) | (15,942 | ) | (9,710 | ) | (2,242 | ) | (2,720 | ) | (30,133 | ) | (6,437 | ) | ||||||||
Loan interest income excluding accretion on acquired loans | $ | 134,241 | $ | 119,399 | $ | 95,727 | $ | 71,808 | $ | 66,668 | $ | 253,640 | $ | 130,149 | ||||||||
Yield on loans1 | 5.89 | 5.86 | 5.29 | 4.45 | 4.29 | 5.88 | 4.30 | |||||||||||||||
Impact of accretion on acquired loans | (0.56 | ) | (0.69 | ) | (0.49 | ) | (0.14 | ) | (0.16 | ) | (0.63 | ) | (0.21 | ) | ||||||||
Yield on loans excluding accretion on acquired loans | 5.33 | % | 5.17 | % | 4.80 | % | 4.31 | % | 4.13 | % | 5.25 | % | 4.09 | % | ||||||||
Net Interest Income1 | $ | 127,153 | $ | 131,351 | $ | 119,858 | $ | 88,399 | $ | 81,764 | $ | 258,504 | $ | 158,403 | ||||||||
Accretion on acquired loans | (14,191 | ) | (15,942 | ) | (9,710 | ) | (2,242 | ) | (2,720 | ) | (30,133 | ) | (6,437 | ) | ||||||||
Net interest income excluding accretion on acquired loans | $ | 112,962 | $ | 115,409 | $ | 110,148 | $ | 86,157 | $ | 79,044 | $ | 228,371 | $ | 151,966 | ||||||||
Net Interest Margin | 3.86 | 4.31 | 4.36 | 3.67 | 3.38 | 4.09 | 3.32 | |||||||||||||||
Impact of accretion on acquired loans | (0.43 | ) | (0.53 | ) | (0.35 | ) | (0.09 | ) | (0.12 | ) | (0.48 | ) | (0.14 | ) | ||||||||
Net interest margin excluding accretion on acquired loans | 3.43 | % | 3.78 | % | 4.01 | % | 3.58 | % | 3.26 | % | 3.61 | % | 3.18 | % | ||||||||
Security interest income1 | $ | 21,018 | $ | 19,375 | $ | 18,694 | $ | 15,827 | $ | 12,562 | $ | 40,393 | $ | 22,780 | ||||||||
Tax equivalent adjustment on securities | (23 | ) | (26 | ) | (34 | ) | (35 | ) | (36 | ) | (49 | ) | (73 | ) | ||||||||
Security interest income excluding tax equivalent adjustment | $ | 20,995 | $ | 19,349 | $ | 18,660 | $ | 15,792 | $ | 12,526 | $ | 40,344 | $ | 22,707 | ||||||||
Loan interest income1 | $ | 148,432 | $ | 135,341 | $ | 105,437 | $ | 74,050 | $ | 69,388 | $ | 283,773 | $ | 136,586 | ||||||||
Tax equivalent adjustment on loans | (167 | ) | (173 | ) | (115 | ) | (80 | ) | (81 | ) | (340 | ) | (161 | ) | ||||||||
Loan interest income excluding tax equivalent adjustment | $ | 148,265 | $ | 135,168 | $ | 105,322 | $ | 73,970 | $ | 69,307 | $ | 283,433 | $ | 136,425 | ||||||||
Net Interest Income1 | $ | 127,153 | $ | 131,351 | $ | 119,858 | $ | 88,399 | $ | 81,764 | $ | 258,504 | $ | 158,403 | ||||||||
Tax equivalent adjustment on securities | (23 | ) | (26 | ) | (34 | ) | (35 | ) | (36 | ) | (49 | ) | (73 | ) | ||||||||
Tax equivalent adjustment on loans | (167 | ) | (173 | ) | (115 | ) | (80 | ) | (81 | ) | (340 | ) | (161 | ) | ||||||||
Net interest income excluding tax equivalent adjustment | $ | 126,963 | $ | 131,152 | $ | 119,709 | $ | 88,284 | $ | 81,647 | $ | 258,115 | $ | 158,169 | ||||||||
1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost. |
Source:
2023 GlobeNewswire, Inc., source