Seacoast Banking Corp. of Florida: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 27 October 2025: press release. Guidance figures: 1 new. The quarter’s numbers.

Read the filing

Key takeaways

• Net income declined from prior quarter: Net income was $36.5 million, or $0.42 per diluted share, against $42.7 million, or $0.50, in the second quarter. The result included $10.8 million of merger-related charges. Source
• Adjusted pre-tax pre-provision earnings up 7%: Adjusted pre-tax pre-provision earnings were $67.2 million, up 7% on the second quarter and 45% on a year earlier. The reported figure was $55.9 million, down 7% on the second quarter. Source
• Margin nearly flat; excluding accretion up: Net interest margin was 3.57%, down one basis point. Excluding accretion on acquired loans it rose three basis points to 3.32%. Loan yields were 5.96% and securities yields were 3.92%. Source
• Loans grew 13% annualized: Loans rose $355.3 million to $11.0 billion. Organic loan growth, excluding Heartland, was 8% annualized. Source
• Deposits rose on Heartland and organic growth: Deposits reached $13.1 billion, up $592.7 million or 19% annualized. Organic deposit growth was 7% annualized, and brokered deposits fell by $325.7 million. Source
• Efficiency ratio rose on charges: The efficiency ratio was 60.66%, compared with 56.95% in the second quarter. The adjusted efficiency ratio, which excludes merger-related charges, improved to 53.84% from 55.36%. Source
• Villages Bancorporation acquisition closed: Villages Bancorporation closed October 1, 2025, adding 19 branches and about $4 billion in assets in North Central Florida and The Villages community. Source

“Our competitive transformation is being realized and is delivering exceptional results. In the third quarter, we sustained strong momentum in growing net interest income, driven by very strong performance in both loan and deposit growth.”

Charles M. Shaffer, Seacoast's Chairman and CEO

Guidance

What changed from last quarter

• New: The Villages Bancorporation acquisition was completed on October 1, 2025. The prior release had described it as proposed, with closing expected in the fourth quarter of 2025. Source

Results and earnings drivers

• Net income declined from prior quarter: Net income was $36.5 million, or $0.42 per diluted share, against $42.7 million, or $0.50, in the second quarter. The result included $10.8 million of merger-related charges. Source
• Adjusted net income held level: Adjusted net income was $45.2 million, or $0.52 per diluted share, the same as the second quarter and up from $30.5 million in the third quarter of 2024. Source
• Net revenue rose four percent: Net revenues were $157.3 million, up 4% from the prior quarter and 21% from a year earlier. Adjusted net revenues were $158.6 million. Source
• Adjusted pre-tax pre-provision earnings up 7%: Adjusted pre-tax pre-provision earnings were $67.2 million, up 7% on the second quarter and 45% on a year earlier. The reported figure was $55.9 million, down 7% on the second quarter. Source
• Tangible returns eased from second quarter: Return on average tangible shareholders' equity was 10.70% and return on average tangible assets was 1.04%, against 12.82% and 1.24% in the prior quarter. Adjusted ROTCE was 12.98%. Source

Net interest income and margin

• Net interest income up five percent: Net interest income was $133.5 million, up 5% from the prior quarter and 25% from a year earlier, driven by growing loan and securities balances. Securities income rose 11% on higher-yielding purchases. Source
• Margin nearly flat; excluding accretion up: Net interest margin was 3.57%, down one basis point. Excluding accretion on acquired loans it rose three basis points to 3.32%. Loan yields were 5.96% and securities yields were 3.92%. Source
• Acquired-loan accretion slightly lower: Accretion on acquired loans was $9.5 million, against $10.6 million in the prior quarter. Interest expense on deposits rose $2.5 million, reflecting higher balances from organic growth and Heartland. Source
• Deposit costs near prior level: Cost of deposits was 1.81%, up one basis point, while cost of funds fell three basis points to 1.96%. Interest on borrowed money fell $1.0 million after a partial repayment of wholesale borrowings. Source

“We remain steadfast in our disciplined approach to credit, and our balance sheet ranks among the strongest in the industry”

Charles M. Shaffer, Seacoast's Chairman and CEO

Loans and deposits

• Loans grew 13% annualized: Loans rose $355.3 million to $11.0 billion. Organic loan growth, excluding Heartland, was 8% annualized. Source
• Loan pipelines rose to $1.2 billion: Total loan pipelines were $1.2 billion, against $920.9 million at June 30. Commercial pipelines reached $1.1 billion, and saleable residential pipelines rose to $21.3 million. Source
• Deposits rose on Heartland and organic growth: Deposits reached $13.1 billion, up $592.7 million or 19% annualized. Organic deposit growth was 7% annualized, and brokered deposits fell by $325.7 million. Source
• Consumer and commercial deposit mix: Customer transaction accounts were 48% of total deposits. Consumer deposits were 41% of deposit funding, with an average consumer balance of $25 thousand; commercial deposits were 59%. Source

Fee income

• Noninterest income slightly lower: Noninterest income was $23.8 million, down 3% from the prior quarter and up 1% from a year earlier. Securities losses of $0.8 million were included. Source
• Wealth management added new assets: Wealth management income was $4.6 million, up 9% on the prior quarter. Assets under management grew 24% year over year, and new assets of $258.1 million were the division's highest quarterly result. Source
• Treasury service fees grew: Service charges on deposits were $6.2 million, up 12%. Management linked the growth to investments in talent and market expansion that drove treasury management services to commercial customers. Source
• Other income fell on prior tax refunds: Other income was $6.0 million, down 20%, because the prior quarter included $3.0 million of tax refunds. BOLI income rose 15%, including $1.3 million of death benefit payouts. Source

Expenses and efficiency

• Noninterest expense rose eleven percent: Noninterest expense was $102.0 million, up 11% from the prior quarter and 20% from a year earlier. The total included $10.8 million of merger-related charges. Source
• Salaries rose on footprint and incentives: Salaries and wages were $46.3 million, up 4%. Management attributed the rise to footprint expansion, including Heartland, and higher performance-driven incentive compensation. Source
• Data processing costs rose with volume: Outsourced data processing costs were $9.3 million, up 10%, on higher transaction volume and customer growth, including from Heartland. Source
• Efficiency ratio rose on charges: The efficiency ratio was 60.66%, compared with 56.95% in the second quarter. The adjusted efficiency ratio, which excludes merger-related charges, improved to 53.84% from 55.36%. Source
• Income tax expense declined: Income tax expense was $10.5 million, against $12.6 million in the prior quarter. Tax benefits from stock-based compensation were immaterial in each period. Source

Asset quality

• Nonperforming loans declined: Nonperforming loans were $60.6 million, or 0.55% of loans, down from $64.2 million. Nonperforming assets were 0.39% of total assets, against 0.44% in the prior quarter. Source
• Net charge-offs rose modestly: Net charge-offs were $3.2 million, or 12 basis points annualized, against $2.5 million in the prior quarter. Accruing past-due loans rose to $20.3 million. Source
• Provision tied to loan growth: Provision for credit losses was $8.4 million, largely from organic loan growth, and included a $1.9 million day-one provision on Heartland. Allowance coverage remained at 1.34%. Source
• Criticized loans edged up: Criticized and classified loans were 2.50% of total loans, up from 2.39% in the prior quarter but below 2.59% a year earlier. Source

Capital, liquidity and funding

• Capital ratios remain high: Tier 1 capital ratio was 14.5%, CET1 was 13.9%, and the tier 1 leverage ratio was 10.9%. The company is considered well capitalized under applicable U.S. regulatory capital requirements. Source
• Liquidity sources exceed $6 billion: Cash and cash equivalents were $306.0 million, and available borrowing capacity was $6.1 billion, including $3.4 billion of collateralized lines and $2.3 billion of unpledged securities. Source
• Federal Home Loan Bank advances fell: Federal Home Loan Bank advances were $690.0 million at a 4.04% weighted-average rate, down from $715.0 million at 4.15% at June 30. Source
• Securities bought at 5.03% yield: About $385 million of primarily agency mortgage-backed securities were bought at an average yield of 5.03%. Total debt securities reached $3.8 billion at quarter end. Source
• Quarterly dividend unchanged: Cash dividends declared were $0.18 per share in each quarter shown, and $0.54 for the nine months. Source

Acquisitions, integration and people

• Heartland integration completed in quarter: Heartland closed July 11, 2025, adding about $153.3 million in loans and four Central Florida branches. Integration, including system conversion, was completed in the third quarter. Source
• Villages Bancorporation acquisition closed: Villages Bancorporation closed October 1, 2025, adding 19 branches and about $4 billion in assets in North Central Florida and The Villages community. Source
• Acquisitions to support future earnings: Management said the two acquisitions will position the company for further gains in profitability and earnings in the periods ahead. Source
• Banker investments drove loan production: Management credited investments in high-quality bankers with robust loan production and pipeline expansion, along with gains across treasury, wealth and insurance income. Source
• Full-time staff rose to 1,601: Full-time equivalent employees were 1,601 at quarter end, up from 1,522 in the prior quarter. Source

Coming up, as management said on 27 October 2025

• Villages integration and conversion timing: Full integration and system conversion of the Villages acquisition are expected in the third quarter of 2026, later than the second quarter of 2026 given in the prior release. Source
• Citizens First Bank name until conversion: The 19 acquired branches will operate as Citizens First Bank until the system conversion in 2026. Source

Figures management reported

Risks management discussed

• Financial: Held-to-maturity securities carry a $598.6 million book value against a $498.4 million fair value. The company states it has the intent and ability to hold these securities to maturity. Source
• Operational: Merger-related charges are running alongside two acquisitions still being integrated, with Villages conversion expected later in 2026. Source
• Regulatory: Construction, land development and commercial real estate loans are measured against regulatory guidance, at 32% and 223% of consolidated risk-based capital. Source

Earlier plans management reported on

• Met: The prior release expected finalization later in the third quarter; the current release states integration was completed in that quarter.
• Met: The prior release expected a fourth quarter 2025 close; the current release reports completion on October 1, 2025.
• Not stated: The prior release gave a second quarter 2026 timing; the current release gives third quarter 2026 for the same activities.
• Not stated: The prior release said the company would deploy excess capital through the two acquisitions, which it expected to enhance profitability.

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.