Seacoast Reports Third Quarter 2026 Results

STUART, Fla.--(BUSINESS WIRE)--Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported unaudited results of operations and other financial information for the third quarter of 2026.

Third Quarter 2026 Highlights

• Net income of $59.9 million, or $0.55 per share, increased 1% from the prior quarter and 64% from the prior year quarter. Adjusted net income¹ of $71.8 million, or $0.66 per share, increased 9% from the prior quarter and 59% from the prior year quarter.
• Adjusted pre-tax pre-provision earnings¹ increased 5% from the prior quarter and 49% from the prior year quarter.
• Net interest income grew 2% from the prior quarter and 37% from the prior year quarter.
• The net interest margin was stable at 3.83% compared to the prior quarter and, excluding accretion on acquired loans, net interest margin expanded one basis point to 3.66%.
• 13% annualized organic loan growth in the third quarter and 10% annualized growth year to date.
• Average noninterest-bearing deposits grew 4% annualized from the prior quarter and noninterest-bearing demand deposits have grown 10% annualized year to date.
• Continued share repurchases, with over 1.2 million shares of common stock repurchased year to date.
• Return on average assets was 1.11% and adjusted return on average assets¹ was 1.34%, compared to 1.25% in the prior quarter.
• Return on average tangible shareholders' equity was 14.34% and adjusted return on average tangible shareholders' equity¹ was 16.89%, compared to 15.79% in the prior quarter.
• Successfully completed the integration of Villages Bancorporation, Inc. (“VBI”), solidifying a long-term growth partnership.

Charles M. Shaffer, Seacoast's Chairman and CEO, said, “Seacoast celebrates its 100^th anniversary this month, and I am incredibly proud of the company we have become and the momentum we are carrying forward. Our third quarter results demonstrate the earnings power of our franchise, with record earnings, strong organic loan growth, and improved operating efficiency. Importantly, we continue to operate from a position of financial strength, with a fortress balance sheet, strong capital, and substantial liquidity.

Shaffer added, “Our team remains focused on serving clients, winning new business, and realizing the benefits of the investments we have made across the organization. Our expanded footprint, experienced bankers, and deep community presence position us well to continue growing relationships and improving productivity. At the same time, our balance sheet strength and financial flexibility give us the capacity to support our customers through economic cycles, invest in our business, and pursue disciplined growth.

Shaffer concluded, “As we enter our second century, I believe Seacoast has never been better positioned. We are larger, stronger, and more capable, with an exceptional team, a strong culture, and the financial strength to capitalize on the opportunities ahead. This quarter’s results reinforce our confidence in Seacoast’s ability to continue growing, improving returns, and creating enduring value for our customers, communities, and shareholders.”

Financial Results

Income Statement

• Net income in the third quarter of 2026 was $59.9 million, or $0.55 per diluted share, compared to $59.5 million, or $0.55 per diluted share, in the prior quarter and $36.5 million, or $0.42 per diluted share, in the prior year quarter. Adjusted net income¹ for the third quarter of 2026 was $71.8 million, or $0.66 per diluted share, compared to $65.8 million, or $0.61 per diluted share, for the prior quarter, and $45.2 million, or $0.52 per diluted share, for the prior year quarter. For the nine months ended September 30, 2026, net income was $151.3 million and adjusted net income¹ was $205.4 million, compared to $110.6 million and $121.7 million, respectively, in the prior year period.
• Net revenues were $215.0 million in the third quarter of 2026, an increase of $6.8 million, or 3%, compared to the prior quarter, and an increase of $57.7 million, or 37%, compared to the prior year quarter. Adjusted net revenues¹ were $217.5 million in the third quarter of 2026, an increase of $7.5 million, or 4%, compared to the prior quarter, and an increase of $58.9 million, or 37%, compared to the prior year quarter. For the nine months ended September 30, 2026, net revenues were $587.0 million, an increase of 31% compared to the prior year period.
• Pre-tax pre-provision earnings on an adjusted basis¹ were $100.3 million in the third quarter of 2026, an increase of $4.9 million, or 5%, compared to the prior quarter, and an increase of $33.1 million, or 49%, compared to the third quarter of 2025. For the nine months ended September 30, 2026, adjusted pre-tax pre-provision earnings¹ were $287.4 million, compared to $181.5 million in the prior year period.
• Net interest income totaled $183.4 million in the third quarter of 2026, an increase of $3.0 million, or 2%, compared to the prior quarter, and an increase of $49.9 million, or 37%, compared to the third quarter of 2025. Interest income on loans increased $9.2 million, or 5%, compared to the prior quarter due to higher average loan balances and higher core loan yields. Accretion on acquired loans was $8.5 million in the third quarter of 2026 compared to $8.9 million in the second quarter of 2026. Securities income decreased $0.8 million, or 1%, compared to the prior quarter as improved securities portfolio yields were more than offset by lower average securities balances. Interest expense on deposits increased $4.3 million, or 7%, compared to the prior quarter due to higher average balances and higher rates.
• Net interest margin was stable at 3.83% in the third quarter of 2026 compared to the second quarter of 2026, and increased 26 basis points compared to 3.57% in the third quarter of 2025. Excluding the effects of accretion on acquired loans, net interest margin expanded one basis point to 3.66% in the third quarter of 2026 compared to 3.65% in the second quarter of 2026, and increased 34 basis points compared to 3.32% in the third quarter of 2025. Loan yields were 5.89%, an increase of one basis point from the prior quarter. Excluding accretion on acquired loans, loan yields were 5.64%, up three basis points from both the prior quarter and the prior year quarter. Securities yields increased to 4.52%, up five basis points from the prior quarter and up 60 basis points from the prior year quarter. The cost of deposits increased seven basis points to 1.60% in the third quarter of 2026 compared to 1.53% in the prior quarter, and declined 21 basis points compared to 1.81% in the third quarter of 2025. The cost of funds increased five basis points to 1.74% compared to the prior quarter, and declined 22 basis points compared to the prior year quarter.
• The Company recorded a provision for credit losses of $6.3 million in the third quarter of 2026, reflecting continued strong loan growth and net charge-offs of $5.4 million. Allowance coverage of 1.41% at September 30, 2026 was higher by three basis points compared to June 30, 2026, and included an $8.4 million measurement period adjustment, identified and recorded in the third quarter of 2026, to the reserve for an acquired VBI loan.
• Noninterest income totaled $31.6 million in the third quarter of 2026, an increase of $3.8 million, or 14%, compared to the prior quarter, and an increase of $7.8 million, or 33%, compared to the prior year quarter. Net securities activity resulted in losses of $0.5 million during the third quarter of 2026. Other changes in the third quarter of 2026 included:
  • Wealth management income totaled $6.1 million, an increase of $0.1 million, or 2%, from the prior quarter and an increase of $1.5 million, or 33%, from the prior year quarter. Assets under management have grown 29% year-over-year with a compound annual growth rate of 22% over the last five years.
  • Mortgage banking income totaled $4.7 million, an increase of $2.0 million, or 73%, from the prior quarter, with higher interest rates driving higher values on mortgage servicing rights, offsetting similar declines earlier in 2026. Comparisons to the prior year quarter are impacted by the October 2025 acquisition of VBI resulting in the addition of mortgage origination activity in The Villages® communities.
  • Insurance agency income totaled $1.8 million, an increase of $0.5 million, or 38%, from the prior quarter and an increase of $0.4 million, or 25%, from the prior year quarter, reflecting continued growth in the business including a small agency acquisition completed in the third quarter of 2026.
  • Other income totaled $7.5 million, an increase of $1.4 million, or 24%, compared to the prior quarter and an increase of $1.5 million, or 24%, from the prior year quarter. Compared to the prior quarter, the third quarter of 2026 included higher swap and syndication fees, higher gains on SBA loan sales and higher unrealized gains on SBIC investments.
• Noninterest expense was $133.3 million in the third quarter of 2026, an increase of $10.2 million, or 8%, compared to the prior quarter, and an increase of $31.3 million, or 31%, compared to the prior year quarter. Merger and integration costs totaled $15.5 million, compared to $8.4 million in the prior quarter and $10.8 million in the prior year quarter. Results for the third quarter of 2026 included:
  • Salaries and employee benefits totaled $63.4 million, an increase of $0.3 million, or 1%, from the prior quarter and an increase of $9.7 million, or 18%, from the prior year quarter.
  • Outsourced data processing costs totaled $12.5 million, an increase of $0.2 million, or 2%, from the prior quarter and an increase of $3.1 million, or 34%, from the prior year quarter.
  • Occupancy and furniture and equipment expenses totaled $12.5 million, an increase of $0.1 million, or 1%, compared to the prior quarter and an increase of $2.7 million, or 27%, from the prior year quarter.
  • Legal and professional fees totaled $2.7 million, an increase of $0.2 million, or 10%, compared to the prior quarter and an increase of $1.1 million, or 63%, from the prior year quarter.
  • Amortization of intangibles totaled $9.9 million, consistent with the prior quarter and an increase of $3.9 million, or 65%, from the prior year quarter.
  • Other expenses totaled $9.4 million, an increase of $1.4 million, or 17%, compared to the prior quarter and an increase of $3.6 million, or 60%, from the prior year quarter.
• The efficiency ratio was 61.0% in the third quarter of 2026, compared to 58.5% in the second quarter of 2026 and 64.4% in the third quarter of 2025. The adjusted efficiency ratio¹ improved to 53.9% in the third quarter of 2026, compared to 54.5% in the second quarter of 2026 and 57.6% in the prior year quarter. The Company remains keenly focused on disciplined expense control while continuing to make investments to support growth.

Balance Sheet

• At September 30, 2026, the Company had total assets of $21.2 billion and total shareholders’ equity of $2.6 billion. Book value per common share was $26.83 as of September 30, 2026, compared to $28.20 as of June 30, 2026, and $27.07 as of September 30, 2025. Tangible book value per share, treating all convertible preferred shares as common was $15.96 as of September 30, 2026, compared to $17.25 as of June 30, 2026, and $17.61 as of September 30, 2025. Higher interest rates and wider spreads led to a decline in accumulated other comprehensive income associated with investment securities and related hedging activities, contributing approximately $1.63 to the decline in tangible book value per share during the third quarter of 2026.
• Debt securities totaled $5.2 billion as of September 30, 2026, a decrease of $551.3 million compared to June 30, 2026. The Company sold $234.0 million in securities during the third quarter of 2026 to fund strong loan growth. Debt securities as of September 30, 2026 included approximately $4.6 billion in securities classified as available-for-sale and recorded at fair value. The unrealized loss on these securities is fully reflected in the value presented on the balance sheet. The portfolio also includes $553.0 million in securities classified as held-to-maturity with a fair value of $435.3 million.
• Continued strong loan origination volume supported an increase in loan balances of $428.8 million, or 13% annualized, during the third quarter of 2026. The outlook for continued consistent growth remains strong, with commercial loan pipelines totaling $1.3 billion as of September 30, 2026.
• Total deposits were $16.6 billion as of September 30, 2026, compared to $16.8 billion as of June 30, 2026, with the decline including a $159.0 million decrease in brokered deposits and a $105.9 million decline in public funds. Outside of these two funding sources, deposits grew 1.3% annualized in all other categories.
  • Noninterest-bearing demand deposits have grown at an annualized rate of 10% year to date.
  • The cost of deposits increased seven basis points to 1.60% from 1.53% in the prior quarter.
  • At September 30, 2026, customer transaction account balances continued to represent 48% of total deposits. The Company benefits from a granular deposit franchise, with the top ten depositors representing approximately 2% of total customer deposits.
  • Consumer deposits represented 47% of overall customer deposit funding with an average consumer customer balance of $26 thousand. Commercial deposits represented 53% of overall customer deposit funding with an average business customer balance of $120 thousand.
  • Uninsured deposits represented 36% of overall deposit balances as of September 30, 2026. This includes public funds under the Florida Qualified Public Depository program, which provides loss protection to depositors beyond FDIC insurance limits. Excluding such balances, the uninsured and uncollateralized deposits were 32% of total deposits. The Company has liquidity sources including cash and lines of credit with the Federal Reserve and Federal Home Loan Bank and other borrowings that represented 148% of uninsured deposits, and 165% of uninsured and uncollateralized deposits.
• Federal Home Loan Bank and other borrowings averaged $862.1 million at 3.83% for the third quarter of 2026, compared to average borrowings of $915.0 million at 3.77% in the second quarter of 2026 and $637.8 million at 4.17% in the third quarter of 2025. 

Asset Quality

• The ratio of criticized and classified loans to total loans was 2.90% at September 30, 2026, 2.88% at June 30, 2026, and 2.50% at September 30, 2025.
• Nonperforming loans were $73.3 million, or 0.54% of total loans, at September 30, 2026, a decrease of $13.3 million, or 15%, from $86.5 million, or 0.66% of total loans, as of June 30, 2026 and an increase of $12.7 million, or 21%, from $60.6 million, or 0.55%, of total loans, at September 30, 2025.
• Accruing past due loans were $27.4 million, or 0.20% of total loans, at September 30, 2026, compared to $20.1 million, or 0.15% of total loans, at June 30, 2026, and $20.3 million, or 0.19% of total loans, at September 30, 2025.
• Net charge-offs were $5.4 million in the third quarter of 2026, compared to $3.2 million in both the second quarter of 2026 and the third quarter of 2025. Net charge-offs for the four most recent quarters averaged 0.10% of total loans.
• The ratio of ACL to total loans was 1.41% at September 30, 2026, an increase of three basis points compared to 1.38% at June 30, 2026, and was 1.34% at September 30, 2025. The increase in coverage is the result of an $8.4 million measurement period adjustment, identified and recorded in the third quarter of 2026, to the reserve for an acquired VBI loan.
• 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.
• Construction and land development and commercial real estate loans remain well below regulatory guidance as of September 30, 2026 at 45% and 250% of total bank-level risk-based capital², respectively, compared to 40% and 230%, respectively, at June 30, 2026. On a consolidated basis and as of September 30, 2026, construction and land development and commercial real estate loans represented 41% and 227%, respectively, of total consolidated risk-based capital².

Capital and Liquidity

• The Company continues to operate with a fortress balance sheet, with a Tier 1 capital ratio at September 30, 2026 of 14.1%² compared to 14.3% at June 30, 2026, and 14.5% at September 30, 2025. The Total capital ratio was 15.5%², the Common Equity Tier 1 capital ratio was 11.3%², and the Tier 1 leverage ratio was 10.5%² at September 30, 2026. The Company is considered “well-capitalized” based on applicable U.S. regulatory capital ratio requirements.
• Tangible equity to tangible assets³ was 8.63% at September 30, 2026, compared to 9.25% at June 30, 2026, and 9.76% at September 30, 2025, with the decline associated with the impact of higher rates on the securities portfolio recorded through accumulated other comprehensive income. If all held-to-maturity securities were also reflected at fair value, the tangible equity ratio would have been 8.22% at September 30, 2026.
• During 2026, the Company has taken opportunities to leverage its strong capital position by repurchasing over 1.2 million shares of its common stock under its share repurchase program.
• At September 30, 2026, in addition to $303.2 million in cash, the Company had $8.5 billion in available borrowing capacity, including $5.3 billion in available collateralized lines of credit, $2.8 billion of unpledged debt securities available as collateral for potential additional borrowings, and available unsecured lines of credit of $348.0 million. These liquidity sources as of September 30, 2026, represented 165% of uninsured and uncollateralized deposits.

OTHER INFORMATION

Conference Call Information

Seacoast will host a conference call on October 28, 2026, at 10:00 a.m. (Eastern Time) to discuss the third quarter of 2026 earnings results and business trends. Investors may call in (toll-free) by dialing (800) 715-9871 (Conference ID: 5608516). Charts will be used during the conference call and may be accessed at Seacoast’s website at www.SeacoastBanking.com by selecting “Presentations” under the heading “News/Events.” Additionally, a recording of the call will be made available to individuals shortly after the conference call and can be accessed via a link at www.SeacoastBanking.com under the heading “Corporate Information.” The recording will be available for one year.

About Seacoast Banking Corporation of Florida (NASDAQ: SBCF)

Seacoast Banking Corporation of Florida (NASDAQ: SBCF) is one of the largest community banks headquartered in Florida with approximately $21.2 billion in assets and $16.6 billion in deposits as of September 30, 2026. Seacoast provides integrated financial services including commercial and consumer banking, wealth management, and mortgage and insurance services to customers at 105 full-service branches across Florida and Georgia, and through advanced mobile and online banking solutions. Seacoast National Bank is the wholly-owned subsidiary bank of Seacoast Banking Corporation of Florida. For more information about Seacoast, visit www.SeacoastBanking.com.

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, 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 or impacts to reported earnings that may be realized from cost controls, tax law changes, conversion of preferred shares into common shares, 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. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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. Forward-looking statements also include statements relating to expectations regarding net interest income, net interest margin, loan growth, deposit growth and mix, credit quality, noninterest income and expense, capital levels and liquidity. 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 continued inflationary pressures, changes in interest rates, tariffs or trade wars (including reduced consumer spending), 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 adverse developments in the banking industry, or as encountered by other financial institutions that adversely affect Seacoast, and including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto (including increases in the cost of our deposit insurance assessments), the Company's ability to effectively manage its liquidity risk and any growth plans, and the availability of capital and funding; governmental monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve, as well as risks related to legislative, tax and regulatory changes, including those that impact the money supply and inflation; the risks of continued 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 (including the impacts of interest rates on macroeconomic conditions, and on our net interest income), 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 or persistent inflation; changes in borrower credit risks and payment behaviors, and 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, especially as they relate to the value of collateral supporting the Company’s loans; 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 and the risk that the regulatory environment may not be conducive to or may prohibit or delay the consummation of future mergers and/or business combinations, may increase the length of time and amount of resources required to consummate such transactions, and may reduce the anticipated benefit; inaccuracies or other failures from the use of models, including the failure of assumptions and estimates (including with respect to our financial statements), 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, and limit deposit, customer and employee attrition; changes in technology or products that may be more difficult, costly, or less effective than anticipated; the timely development and acceptance of new products and services as well as risks (including reputational and litigation) attendant thereto, and perceived overall value of these products and services by users; risks associated with the development and use of artificial intelligence; the Company’s ability to identify and address increased cybersecurity risks, including those impacting vendors and other third parties which may be exacerbated by developments in generative artificial intelligence; fraud or misconduct by internal or external parties, 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; 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, regime change, civil unrest, 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 and/or increase costs, including, but not limited to, property and casualty and other insurance costs; Seacoast’s ability to maintain adequate internal controls over financial reporting; potential or actual claims, damages, penalties, fines, costs, unexpected outcomes and reputational damage resulting from new, existing, 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, the results of tax audit findings, challenges to our tax positions, or adverse changes or interpretations of tax laws; the effects of competition (including the inability to grow, or attrition of deposits, customers, and employees) from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, non-bank financial technology providers, securities brokerage firms, insurance companies, private credit funds, money market and other mutual funds and other financial institutions; the failure of assumptions underlying the establishment of reserves for expected credit losses; impairment of our goodwill or other intangible assets, risks related to, and the costs associated with, environmental, social and governance matters (“ESG”) and anti-ESG matters, including the scope and pace of related rulemaking activity and disclosure requirements and potential litigation and enforcement; legislative, regulatory or supervisory actions related to so-called “de-banking,” including any new prohibitions, requirements or enforcement priorities that could affect customer relationships, compliance obligations, or operational practices; government actions or inactions, including a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the federal budget and economic policy, including the impact of tariffs and trade policies; the risk that balance sheet, revenue growth, and loan growth expectations may differ from actual results; and other factors and risks described herein and under “Risk Factors” 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, 2025 and in other periodic reports that the Company files with the SEC. 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.