Seacoast Banking of Florida : Fourth Quarter 2024 Earnings Release
SBCF
SEACOAST REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS
Fourth Quarter 2024 Net Interest Margin Expands 22 Basis Points to 3.39%
Well-Positioned Balance Sheet with Strong Capital and Liquidity
STUART, Fla., January 27, 2025 /BUSINESS WIRE/ -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the fourth quarter of 2024 of $34.1 million, or $0.40 per diluted share, compared to $30.7 million, or $0.36 per diluted share in the third quarter of 2024 and $29.5 million, or $0.35 per diluted share in the fourth quarter of 2023. For the year ended December 31, 2024, net income was $121.0 million, or $1.42 per diluted share, compared to $104.0 million, or $1.23 per diluted share, for the year ended December 31, 2023.
Adjusted net income1 for the fourth quarter of 2024 was $40.6 million, or $0.48 per diluted share, compared to $30.5 million, or $0.36 per diluted share in the third quarter of 2024 and $31.4 million, or $0.37 per diluted share in the fourth quarter of 2023. Adjusted net income1 for the year ended December 31, 2024 was $132.5 million, or $1.56 per diluted share, compared to $133.2 million, or $1.58 per diluted share, for the year ended December 31, 2023.
Pre-tax pre-provision earnings1 were $47.9 million in the fourth quarter of 2024, an increase of $1.8 million, or 4%, compared to the third quarter of 2024 and an increase of $5.9 million, or 14%, compared to the fourth quarter of 2023. Pre-tax pre-provision earnings1 for the year ended December 31, 2024 were $174.2 million, an increase of $0.4 million, or 0.2%, when compared to the year ended December 31, 2023. Adjusted pre-tax pre-provision earnings1 were $56.6 million in the fourth quarter of 2024, an increase of $10.2 million, or 22%, compared to the third quarter of 2024 and an increase of $11.6 million, or 26%, compared to the fourth quarter of 2023. Adjusted pre-tax pre-provision earnings1 for the year ended December 31, 2024 were $190.0 million, a decrease of $23.9 million, or 11%, when compared to the year ended December 31, 2023.
For the fourth quarter of 2024, return on average tangible assets was 1.06% and return on average tangible shareholders' equity was 10.90%, compared to 0.99% and 10.31%, respectively, in the prior quarter, and 0.99% and 11.22%, respectively, in the prior year quarter. Adjusted return on average tangible assets1 in the fourth quarter of 2024 was 1.24% and adjusted return on average tangible shareholders' equity1 was 12.74%, compared to 0.98% and 10.27%, respectively, in the prior quarter, and 1.04% and 11.80%, respectively, in the prior year quarter. For the year ended December 31, 2024, return on average tangible assets was 0.98%, and return on average tangible shareholders' equity was 10.39%, compared to 0.91% and 10.38%, respectively, for the year ended December 31, 2023. For the year ended December 31, 2024, adjusted return on average tangible assets1 was 1.06%, and adjusted return on average tangible shareholders' equity1 was 11.25%, compared to 1.12% and 12.80%, respectively, for the year ended December 31, 2023.
Charles M. Shaffer, Seacoast's Chairman and CEO, said, "Our Seacoast associates weathered the impacts of two successive hurricanes to deliver remarkable revenue growth, record loan production, and a 33% increase in adjusted net income. The strong net interest margin expansion in the fourth quarter evidenced the solid, granular core deposit franchise that we have built over many decades through our relationship-focused banking model. With accelerating business momentum and tailwinds from fixed rate asset repricing, we remain focused on profitability improvement and growth in the year ahead."
Shaffer added, "We advanced several key initiatives this year including the expansion of our commercial lending team and treasury deposit products that will support the next phase of growth for Seacoast. With a tangible common equity ratio of 9.6% and a loan to deposit ratio of 84%, we have a tremendous opportunity ahead to serve clients in our economically vibrant footprint."
Shaffer concluded, "The Seacoast team remains unwavering to our core tenets of maintaining a fortress balance sheet and building one of the best, granular customer deposit franchises in the country."
1Non-GAAP measure, see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.
Financial Results
Income Statement
1Non-GAAP measure, see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.
1Non-GAAP measure, see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.
efficiency ratio1 was 56.07% in the fourth quarter of 2024, compared to 59.84% in the third quarter of 2024 and 60.32% in the prior year quarter. The efficiency ratio for the year ended December 31, 2024 was 60.63% compared to 63.86% for the year ended December 31, 2023. The adjusted efficiency ratio1 for the year ended December 31, 2024 was 59.22% compared to 57.35% for the year ended December 31, 2023. The Company continues to remain keenly focused on disciplined expense control, while making investments for growth.
Balance Sheet
1Non-GAAP measure, see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.
Asset Quality
1Non-GAAP measure, see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.
2 Estimated.
Capital and Liquidity
1Non-GAAP measure, see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.
2Estimated
FINANCIAL HIGHLIGHTS
(Amounts in thousands except per share data)
(Unaudited)
Quarterly Trends
4Q'24
3Q'24
2Q'24
1Q'24
4Q'23
Selected balance sheet data:
Gross loans
$10,299,950
$
10,205,281
$
10,038,508
$
9,978,052
$
10,062,940
Total deposits
12,242,427
12,243,585
12,116,118
12,015,840
11,776,935
Total assets
15,176,308
15,168,371
14,952,613
14,830,015
14,580,249
Performance measures:
Net income
$
34,085
$
30,651
$
30,244
$
26,006
$
29,543
Net interest margin
3.39 %
3.17 %
3.18 %
3.24 %
3.36 %
Pre-tax pre-provision earnings1
$
47,858
$
46,086
$
44,555
$
35,674
$
42,006
Average diluted shares outstanding
85,302
85,069
84,816
85,270
85,336
Diluted earnings per share (EPS)
0.40
0.36
0.36
0.31
0.35
Return on (annualized):
Average assets (ROA)
0.89 %
0.81 %
0.82 %
0.71 %
0.80 %
Average tangible assets (ROTA)2
1.06
0.99
1.00
0.89
0.99
Average tangible common equity (ROTCE)2
10.90
10.31
10.75
9.55
11.22
Tangible common equity to tangible assets2
9.60
9.64
9.30
9.25
9.31
Tangible book value per share2
$
16.12
$
16.20
$
15.41
$
15.26
$
15.08
Efficiency ratio
56.26 %
59.84 %
60.21 %
66.78 %
60.32 %
Adjusted operating measures1:
Adjusted net income4
$
40,556
$
30,511
$
30,277
$
31,132
$
31,363
Adjusted pre-tax pre-provision earnings4
56,610
46,390
44,490
42,513
45,016
Adjusted diluted EPS4
0.48
0.36
0.36
0.37
0.37
Adjusted ROTA2
1.24 %
0.98 %
1.00 %
1.04 %
1.04 %
Adjusted ROTCE2
12.74
10.27
10.76
11.15
11.80
Adjusted efficiency ratio
56.07
59.84
60.21
61.13
60.32
Net adjusted noninterest expense as a
2.19 %
2.19 %
2.19 %
2.23 %
2.25 %
percent of average tangible assets2
Other data:
Market capitalization3
$
2,355,679
$
2,277,003
$
2,016,472
$
2,156,529
$
2,415,158
Full-time equivalent employees
1,504
1,493
1,449
1,445
1,541
Number of ATMs
96
96
95
95
96
Full-service banking offices
77
77
77
77
77
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.
4As of 1Q'24, amortization of intangibles is excluded from adjustments to noninterest expense; prior periods have been updated to reflect the change.
OTHER INFORMATION
Conference Call Information
Seacoast will host a conference call January 28, 2025, at 10:00 a.m. (Eastern Time) to discuss the fourth quarter of 2024 earnings results and business trends. Investors may call in (toll-free) by dialing (800) 715-9871 (Conference ID: 8804483). 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 $15.2 billion in assets and $12.2 billion in deposits as of December 31, 2024. Seacoast provides integrated financial services including commercial and consumer banking, wealth management, and mortgage services to customers at 77 full-service branches across Florida, 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 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 adverse developments in the banking industry, including those highlighted by high- profile bank failures, 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 legislative, tax and regulatory changes including overdraft and late fee caps (if implemented), 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 (including the impacts of interest rates on macroeconomic conditions, customer and client behavior, 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 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, 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, 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, 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 claims, damages, penalties, fines, costs 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, the results of tax audit findings, challenges to our tax positions, or adverse changes or interpretations of tax laws; 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; the failure of assumptions underlying the establishment of reserves for expected credit losses; risks related to, and the costs associated with, environmental, social and governance matters, including the scope and pace of related rulemaking activity and disclosure requirements; 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, 2023 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.
FINANCIAL HIGHLIGHTS
(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
Quarterly Trends
Twelve months ended
(Amounts in thousands, except ratios and per share data)
4Q'24
3Q'24
2Q'24
1Q'24
4Q'23
4Q'24
4Q'23
Summary of Earnings
Net income
$
34,085
$
30,651
$
30,244
$
26,006
$
29,543
$
120,986
$
104,033
Adjusted net income1,6
40,556
30,511
30,277
31,132
31,363
132,476
133,240
Net interest income2
116,115
106,975
104,657
105,298
111,035
433,045
489,043
Net interest margin2,3
3.39 %
3.17 %
3.18 %
3.24 %
3.36 %
3.24 %
3.77 %
Pre-tax pre-provision earnings1
47,858
46,086
44,555
35,674
42,006
174,173
173,812
Adjusted pre-tax pre-provision earnings1,6
56,610
46,390
44,490
42,513
45,016
190,003
213,920
Performance Ratios
Return on average assets-GAAP basis3
0.89 %
0.81 %
0.82 %
0.71 %
0.80 %
0.81 %
0.71 %
Return on average tangible assets-GAAP basis3,4
1.06
0.99
1.00
0.89
0.99
0.98
0.91
Adjusted return on average tangible assets1,3,4
1.24
0.98
1.00
1.04
1.04
1.06
1.12
Net adjusted noninterest expense to average tangible assets1,3,4
2.19
2.19
2.19
2.23
2.25
2.20
2.36
Return on average shareholders' equity-GAAP basis3
6.16
5.62
5.74
4.94
5.69
5.62
5.14
Return on average tangible common equity-GAAP basis3,4
10.90
10.31
10.75
9.55
11.22
10.39
10.38
Adjusted return on average tangible common equity1,3,4
12.74
10.27
10.76
11.15
11.80
11.25
12.80
Efficiency ratio5
56.26
59.84
60.21
66.78
60.32
60.63
63.86
Adjusted efficiency ratio1
56.07
59.84
60.21
61.13
60.32
59.22
57.35
Noninterest income to total revenue (excluding securities gains/
18.02
18.05
17.55
16.17
15.14
17.47
14.39
losses)
Tangible common equity to tangible assets4
9.60
9.64
9.30
9.25
9.31
9.60
9.31
Average loan-to-deposit ratio
83.14
83.79
83.11
84.50
83.38
83.63
82.99
End of period loan-to-deposit ratio
84.27
83.44
82.90
83.12
85.48
84.27
85.48
Per Share Data
Net income diluted-GAAP basis
$
0.40
$
0.36
$
0.36
$
0.31
$
0.35
$
1.42
$
1.23
Net income basic-GAAP basis
0.40
0.36
0.36
0.31
0.35
1.43
1.24
Adjusted earnings1,6
0.48
0.36
0.36
0.37
0.37
1.56
1.58
Book value per share common
25.51
25.68
24.98
24.93
24.84
25.51
24.84
Tangible book value per share
16.12
16.20
15.41
15.26
15.08
16.12
15.08
Cash dividends declared
0.18
0.18
0.18
0.18
0.18
0.72
0.71
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).
6As of 1Q'24, amortization of intangibles is excluded from adjustments to noninterest expense; prior periods have been updated to reflect the change.
Disclaimer
Seacoast Banking Corporation of Florida published this content on January 27, 2025, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on January 27, 2025 at 21:27:59.733.