Seacoast Banking of Florida : Third Quarter 2023 Conference Call Presentation

EARNINGS PRESENTATION

THIRD QUARTER 2023

2023

Cautionary Notice Regarding Forward-Looking Statements

This presentation 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, 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, or expects to acquire, as well as statements with respect to Seacoast's objectives, strategic plans, expectations and intentions and other statements that are not historical facts. Actual results may differ from those set forth in the forward-looking statements.

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 Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") or its wholly-owned banking subsidiary, Seacoast National Bank ("Seacoast Bank"), to be materially different from results, performance or achievements expressed or implied by such forward-looking statements. You should not expect the Company 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 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 Board of Governors of the Federal Reserve, as well as legislative, tax and regulatory changes, including those that impact the money supply and inflation; the risks of changes in interest rates on the level and composition of deposits (as well as the cost of, and competition for, deposits), loan demand, liquidity and the values of loan collateral, securities, and interest rate sensitive assets and liabilities; interest rate risks, sensitivities and the shape of the yield curve; changes in accounting policies, rules and practices; changes in retail distribution strategies, customer preferences and behavior generally and as a result of economic factors, including heightened inflation; 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; the Company's concentration in commercial real estate loans and in real estate collateral in Florida; Seacoast's ability to comply with any regulatory requirements; the effects of problems encountered by other financial institutions that adversely affect Seacoast or the banking industry; 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 Seacoast's investments due to market volatility or counterparty payment risk, as well as the effect of a decline in stock market prices on our fee income from our wealth management business; statutory and regulatory dividend restrictions; increases in regulatory capital requirements for banking organizations generally; the risks of mergers, acquisitions and divestitures, including Seacoast's ability to continue to identify acquisition targets, successfully acquire and integrate desirable financial institutions and realize expected revenues and revenue synergies; changes in technology or products that may be more difficult, costly, or less effective than anticipated; the Company's ability to identify and address increased cybersecurity risks; fraud or misconduct by internal or external actors, which Seacoast may not be able to prevent, detect or mitigate; inability of Seacoast's risk management framework to manage risks associated with the Company's business; dependence on key suppliers or vendors to obtain equipment or services for the business on acceptable terms, including the impact of supply chain disruptions; reduction in or the termination of Seacoast's ability to use the online- or mobile-based platform that is critical to the Company's business growth strategy; the effects of war or other conflicts, including the impacts related to or resulting from Russia's military action in Ukraine, acts of terrorism, natural disasters, including hurricanes in the Company's footprint, 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 the Company; Seacoast's 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 deferred tax assets could be reduced if estimates of future taxable income from the Company's operations and tax planning strategies are less than currently estimated and sales of capital stock could trigger a reduction in the amount of net operating loss carryforwards that the Company 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, non-bank financial technology providers, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in the Company's 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; the failure of assumptions underlying the establishment of reserves for possible credit losses; risks related to environmental, social and governance ("ESG") matters, the scope and pace of which could alter Seacoast's reputation and shareholder, associate, customer and third-party affiliations; and other factors and risks described under "Risk Factors" herein and in any of the Company's subsequent reports filed with the SEC and available on its website at www.sec.gov

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 December 31, 2022 and quarterly reports on Form 10-Q for the quarters ended March 31, 2023 and June 30, 2023 under "Special Cautionary Notice Regarding Forward-Looking Statements" and "Risk Factors", and otherwise in the Company's 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.

THIRD QUARTER 2023 EARNINGS PRESENTATION		2

Valuable Florida Franchise with Strong Capital and Liquidity

SEACOAST BANK FOOTPRINT

Tampa

St. Petersburg

MSA

Naples

Fort Myers

MSA

Jacksonville

MSA

Orlando

MSA

Port St. Lucie

MSA

West Palm Beach

Fort Lauderdale

Miami

MSA

• $14.8 billion in assets as of September 30, 2023, operating in the nation's fastest growing and third most populated state
• Strong presence in Florida's most attractive markets, increasing to #15 Florida market share in 2023 from #18 in 2022
• • #1 Florida-based bank in Orlando MSA
  • #1 Florida-based bank in Palm Beach county
  • #1 market share in Port St. Lucie MSA
• A top three publicly traded community bank headquartered in Florida

• Market Cap: $1.9 billion as of September 30, 2023
• Serving over 280,000 customers throughout Florida, with a wide variety of customer segments and industries
• Strong capital position, supporting further organic growth and opportunistic acquisitions
• Unique customer analytics capabilities, driving value creation with new, acquired, and existing customers

THIRD QUARTER 2023 EARNINGS PRESENTATION		3

Third Quarter 2023 Highlights

Comparisons are to the second quarter of 2023 unless otherwise stated

• Increased Florida market share to #15 compared to #18.
• 3.7% annualized organic deposit growth, with the additional liquidity used to pay down brokered deposits and FHLB borrowings.
• Strong capital, with a Tier 1 capital ratio of 13.9% and the ratio of tangible common equity to tangible assets increasing to 8.68%. Adjusting all HTM securities to fair value, the tangible common equity to tangible assets ratio remains at a peer- leading 7.89%.
• Loan-to-depositratio remains low at 83%, providing balance sheet flexibility moving forward.
• Asset quality remains strong, with nonperforming and criticized loans each declining from the prior quarter.
• Continued disciplined expense management, completing a reduction in force reducing headcount by 6%, and consolidating a branch location.
• Tangible book value per share increased to $14.26. Removing the impact of the change in accumulated comprehensive income, tangible book value per share at September 30, 2023 would have been higher by $0.30, reaching $14.56, an increase of 8% on an annualized basis.

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

THIRD QUARTER 2023 EARNINGS PRESENTATION		4

Net Interest Income

($ in thousands)

Net Interest Income		Net Interest Margin	NIM, excluding accretion on acquired loans
	$131,351	$127,153
$119,858			$119,505

$88,399

	4.36%	4.31%	3.86%
3.67%			3.57%
3.58%	4.01%	3.78%
	3.42%
		3.13%
3Q'22	4Q'22	1Q'23	2Q'23	3Q'23

• Net interest income1 totaled $119.5 million, a decrease of $7.6 million, or 6%, from the prior quarter. The decrease was driven by higher deposit costs, including new requirements by the Florida Bar Association for higher rates on certain trust accounts, and by changes in product mix. These were partially offset by higher interest income on securities and loans.
• Net interest margin contracted 29 basis points to 3.57% and, excluding the effect of accretion on acquired loans, net interest margin decreased 29 basis points to 3.13%. The decline in the net interest margin from the prior quarter was due to the impact of rising deposit rates.
• Securities yields expanded 19 basis points to 3.32%.
• Loan yields increased four basis points from the prior quarter to 5.93%. Excluding the effect of accretion on acquired loans, yields increased to 5.34%, with increases from higher rates and new production partially offset by prepayments.
• The cost of deposits increased 41 basis points to 1.79%, primarily the result of higher short term interest rates, and an increasingly competitive deposit market.

1Calculated on a fully taxable equivalent basis using amortized cost.

THIRD QUARTER 2023 EARNINGS PRESENTATION		5

Noninterest Income

Noninterest Income ($ in thousands)

Adjusted Noninterest Income1 ($ in thousands)

BOLI

Other Income2

Insurance Agency Income Mortgage Banking

Wealth Management Interchange Income

Service Charges

	$21,576
	$2,068
			$17,793
$16,103	$4,828		$2,197
$1,363
$1,160
		$4,533
$3,932	$576
$434	$3,318	$1,182
	$410
$2,732
		$3,138
	$5,066
$4,138			$1,684
$3,504	$4,560		$4,648
3Q'22	2Q'23		3Q'23

BOLI

Other Income3

Insurance Agency Income Mortgage Banking

Wealth Management Interchange Income

Service Charges

		$21,752
		$2,068
			$18,180
$16,465		$5,004	$2,197
$1,363
$4,294	$1,160	$576	$4,920
$434		$3,318	$1,182
$2,732			$410
		$3,138
		$5,066
$4,138			$1,684
$3,504		$4,560	$4,648
3Q'22		2Q'23	3Q'23

Noninterest income totaled $17.8 million in the third quarter of 2023, a decrease of $3.8 million, or 18%, compared to the prior quarter, and an increase of $1.7 million, or 10%, compared to the prior year quarter. Of the $3.8 million decrease in the third quarter of 2023, the $3.4 million decline in interchange income results from the impact of the Durbin amendment, which became effective for Seacoast on July 1, 2023, and limits network interchange fees earned on debit card transactions.

1 Non-GAAP measure, see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP. 2 Other Income includes income and gains on SBIC investments, SBA gains, marine finance fees, other fees related to customer activity and securities losses of $362 thousand in 3Q'22, $176 thousand in 2Q'23 and $387 thousand in 3Q'23.

3 Other Income on an adjusted basis includes income and gains on SBIC investments, SBA gains, marine finance fees, and other fees related to customer activity.

THIRD QUARTER 2023 EARNINGS PRESENTATION		6

Continued Focus on Building Wealth Management

Assets under management totaled $1.6 billion at September 30, 2023, increasing 29% from September 30, 2022. This is a result of the wealth management team's continuing success at winning business with commercial relationships and high net worth families across the footprint.

In the past three years, assets under management have increased at a compound annual growth rate ("CAGR") of 24%.

THIRD QUARTER 2023 EARNINGS PRESENTATION

			Assets Under Management ($ in millions)		$1,578	$1,579
										$1,518
									$1,387
					$1,239	$1,228		$1,228
			$1,158	$1,161			$1,162
		$1,025
	$870
$793
3Q'20	4Q'20	1Q'21	2Q'21	3Q'21	4Q'21	1Q'22	2Q'22	3Q'22	4Q'22	1Q'23	2Q'23	3Q'23
												7

Noninterest Expense

Noninterest Expense ($ in thousands)

Adjusted Noninterest Expense1 ($ in thousands)

Other Expense2

Legal & Professional

Occupancy & Telephone FDIC Assessment

Data Processing Cost Amortization of Intangibles

Salaries & Benefits $760

	$107,865
	$10,256	$93,915
	$4,062
	$10,928	$9,360
	$2,116	$2,679
		$9,810
$61,359	$20,222	$2,258
	$8,714
$9,991	$7,654	$7,457
$3,794
$7,481
$5,393
$1,446	$52,627	$53,637
$32,494
3Q'22	2Q'23	3Q'23

Other Expense2 Legal & Professional

Occupancy & Telephone FDIC Assessment

Data Processing Cost Salaries & Benefits

$760

	$83,992	$83,153
	$9,739	$9,241
	$2,397	$2,773
	$9,911	$9,724
$56,899	$2,116	$2,258
$9,532	$9,318	$8,778
$2,003
$6,518
$5,598	$50,511	$50,379
$32,488
3Q'22	2Q'23	3Q'23

Noninterest expense decreased $14.0 million on a GAAP basis and decreased $0.8 million on an adjusted basis. Changes quarter-over-quarter on an adjusted basis include:

• Salaries and benefits decreased $0.1 million to $50.4 million in the third quarter of 2023, reflecting lower base salaries expense partially offset by lower service origination fees attributed to lower loan production.
• Data processing cost decreased $0.5 million to $8.8 million in the third quarter of 2023 reflecting the benefits of acquisition-related system integration.
• Occupancy and telephone decreased $0.2 million to $9.7 million in the third quarter of 2023 reflecting branch consolidation and cost synergies from recent acquisitions, including one additional branch consolidation in July.
• Legal and professional fees increased by $0.4 million to $2.8 million in the third quarter of 2023, reflecting the impact of one-time projects during the third quarter.
• Other expense decreased $0.5 million to $9.2 million in the third quarter of 2023, reflecting the benefit of acquisition-related cost synergies.

1Non-GAAP measure, see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP. 2Other Expense includes marketing expenses, provision for unfunded commitments, foreclosed property expense and net loss/(gain) on sale and other expenses associated with ongoing business operations.

THIRD QUARTER 2023 EARNINGS PRESENTATION		8

Efficiency Ratio Trend

GAAP - Efficiency Drummond Bank

and Apollo Bank

Sabal Palm Bank

Professional

Freedom

and Florida Business

Bank

Bank

Bank

Legacy Bank

67%

of Florida

65%

63%

62%

62%

63%

60%

57%

55%

54%

56%

53%

48%

3Q'20

4Q'20

1Q'21

2Q'21

3Q'21

4Q'21

1Q'22

2Q'22

3Q'22

4Q'22

1Q'23

2Q'23

3Q'23

Adjusted - Efficiency1

Increase in adjusted efficiency ratio reflects the impact of:

• higher deposit rates, including the first full quarter of Florida's IOTA rule change
• first time impact of the Durbin Amendment on interchange income

												60%
55%						55%					56%
	52%	53%	51%	53%	53%	53%	52%	53%
	49%
3Q'20	4Q'20	1Q'21	2Q'21	3Q'21	4Q'21	1Q'22	2Q'22	3Q'22	4Q'22	1Q'23	2Q'23	3Q'23

• The efficiency ratio was 62.6% for the third quarter of 2023 compared to 67.3% in the prior quarter and 57.1% in the third quarter of 2022.
• The adjusted efficiency ratio1 was 60.2% for the third quarter of 2023 compared to 56.4% in the prior quarter and 53.3% in the third quarter of 2022.

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

THIRD QUARTER 2023 EARNINGS PRESENTATION		9

Disciplined Approach to Lending in a Strong Florida Economy

Loans outstanding declined by $107 million as the Company maintains its disciplined approach to lending.

Loan yields increased four basis points from the prior quarter to 5.93%. Excluding the effect of accretion on acquired loans, yields increased to 5.34%, with increases from higher rates and new production partially offset by prepayments.

New loan add on yields have increased to approximately 8%.

Total Loans End-of-Period ($ in millions)

		$10,134	$10,118	$10,011
	$8,145	5.86%	5.89%	5.93%
	5.29%
$6,691		5.17%	5.31%	5.34%
4.45%	4.80%
4.31%
3Q'22	4Q'22	1Q'23	2Q'23	3Q'23

Yield Excluding		Reported Yield		Total Loans
Accretion on
Acquired Loans

THIRD QUARTER 2023 EARNINGS PRESENTATION		10