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SEACOAST BANKING CORP OF FLORIDA (SBCF)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered solid core performance: adjusted EPS was $0.52 vs. $0.36 a year ago and flat vs. Q2; core NIM (ex-accretion) expanded 3 bps to 3.32% and net interest income rose 5% q/q to $133.9M .
  • Against Wall Street: SBCF beat EPS consensus (Primary EPS: $0.52 vs. $0.458, +$0.062) but missed S&P Global “Revenue” consensus ($148.9M vs. $154.5M, -$5.6M); note company-reported net revenues were $157.3M .
  • Balance sheet catalysts: 7% annualized organic deposit growth (+$212.3M, with +$80.4M non-interest-bearing) and 8% annualized organic loan growth; loan-to-deposit ratio at 83.8% post-Heartland, with Villages closing on Oct 1 to further reduce LTD ratio below ~75% at year-end .
  • Guidance update: management reaffirmed core NIM ~3.45% in Q4; guided Q4 noninterest income to $22–$24M and adjusted expenses to $110–$112M; expects low-to-mid-single-digit organic deposit growth; announced a 5.6% dividend increase to $0.19 per share for Q4 .
  • Strategic narrative: record wealth management AUM additions ($258.1M), strong capital (Tier 1 14.5%), and accretive Villages acquisition position SBCF for margin expansion and earnings accretion into 2026 .

What Went Well and What Went Wrong

What Went Well

  • Adjusted EPS up 48% y/y to $0.52; adjusted pre-tax pre-provision earnings up 45% y/y to $67.2M reflecting core momentum and operating leverage .
  • Robust deposit and loan growth: +$212.3M organic deposits (7% annualized; +$80.4M non-interest-bearing) and 8% annualized organic loan growth; deposit mix remains granular with transaction accounts at 48% of total .
  • Wealth management momentum: record $258.1M new AUM in the quarter; AUM up 24% y/y; management: “record-breaking quarter in wealth management” .
    • CEO: “Our competitive transformation…is delivering exceptional results…strong momentum in growing net interest income, driven by very strong performance in both loan and deposit growth.” .

What Went Wrong

  • GAAP EPS down q/q to $0.42 reflecting $10.8M merger-related costs; efficiency ratio worsened to 60.66% on reported basis despite adjusted improvement .
  • Noninterest income declined $0.7M q/q to $23.8M (securities losses of $0.8M; “Other” down $1.5M due to prior-quarter tax refunds) .
  • S&P Global standardized “Revenue” missed consensus by ~3.6% despite company-reported net revenues rising 4% q/q—highlighting definitional gaps investors must reconcile *.

Financial Results

MetricQ3 2024Q2 2025Q3 2025
Net Revenues ($USD Millions)$130.344 $151.385 $157.286
Net Interest Income ($USD Millions)$106.975 $127.295 $133.906
Total Noninterest Income ($USD Millions)$23.679 $24.521 $23.818
Diluted EPS (GAAP) ($USD)$0.36 $0.50 $0.42
Adjusted Diluted EPS ($USD)$0.36 $0.52 $0.52
Net Interest Margin (%)3.17% 3.58% 3.57%
Core NIM ex-accretion (%)2.90% 3.29% 3.32%

Estimates vs. Actual (S&P Global):

Metric (Q3 2025)ConsensusActualSurprise
Primary EPS Consensus Mean ($USD)0.458*0.52*+0.062, Beat*
Revenue Consensus Mean ($USD)154,522,670*148,915,000*-5,607,670, Miss*

Values retrieved from S&P Global.*

Segment/fee breakdown:

Noninterest Income Component ($USD Millions)Q3 2024Q2 2025Q3 2025
Service charges on deposits$5.412 $5.540 $6.194
Wealth management income$3.843 $4.196 $4.578
Interchange income$1.911 $1.895 $2.008
Mortgage banking fees$0.485 $0.685 $0.517
Insurance agency income$1.399 $1.289 $1.481
BOLI income$2.578 $3.380 $3.875
Other income$7.864 $7.497 $6.006
Securities gains/(losses)$0.187 $0.039 $(0.841)

Key KPIs:

KPIQ3 2024Q2 2025Q3 2025
Loans EOP ($USD Millions)$10,205.281 $10,608.824 $10,964.173
Deposits EOP ($USD Millions)$12,243.585 $12,497.598 $13,090.319
Organic deposit growth ($USD Millions)——$212.3
Cost of deposits (%)2.34% 1.80% 1.81%
Loan yield (reported, %)5.94% 5.98% 5.96%
Securities yield (%)3.75% 3.87% 3.92%
Net charge-offs (annualized, %)0.29% 0.09% 0.12%
NPL / Loans (%)0.79% 0.61% 0.55%
ACL / Loans (%)1.38% 1.34% 1.34%
Tangible book value per share ($USD)$16.20 $17.19 $17.61

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Core NIM (ex-accretion)Q4 2025~3.45% (prior commentary) ~3.45%Maintained
Noninterest incomeQ4 2025—$22–$24MNew range
Adjusted expenses (ex merger costs)Q4 2025—$110–$112MNew range
Organic deposit growthQ4 2025—Low-to-mid single-digitNew directional
Loan-to-deposit ratioYE 2025—Below ~75%New target
De-levering actionsNov 2025—Run-off ~$167M brokered deposits and ~$175M FHLB advances (~4.2%)Operational plan
Quarterly dividend per shareQ4 2025$0.18 $0.19 (payable 12/31/25)Raised 5.6%

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
Net interest margin trajectoryQ1: +9 bps to 3.48%; core NIM +19 bps to 3.24% . Q2: +10 bps to 3.58%; core NIM 3.29% .NIM 3.57%; core NIM 3.32%; guide to ~3.45% in Q4 .Improving into Q4.
Deposit costs/mixQ1: cost down to 1.93%; 50% transaction accounts . Q2: cost down to 1.80%; 47% transaction .Cost up 1 bp to 1.81%; 48% transaction; deposit beta expected ~30% going forward .Stabilizing; favorable beta.
Organic growth (loans/deposits)Q1: loans +5.6% ann.; deposits +11% ann. . Q2: loans +6.4% ann.; pipeline $921M .8% ann. loan growth; deposits +7% ann. organically; late-stage pipeline $1.2B .Accelerating pipeline.
Wealth managementQ1: +$117M AUM added; AUM +14% y/y . Q2: AUM +16% y/y .Record +$258.1M added; AUM +24% y/y .Strong momentum.
Tariffs/macro backdropNot highlighted.CEO: demand remains strong; no tariff impact observed .Neutral.
Technology/AI initiativesN/A.Building treasury stack; targeting Zelle for Business integration .Ongoing investment.
Regulatory/capitalTier 1 ~14.7–14.6% in Q1/Q2; well-capitalized .Tier 1 14.5%; tangible common equity 9.76% .Stable strong capital.

Management Commentary

  • CEO (press release): “Our competitive transformation is being realized…strong momentum in growing net interest income, driven by very strong performance in both loan and deposit growth.” .
  • CEO (call): “We remain committed to our fortress balance sheet principles… confident in our growth outlook and our ability to deliver continued improvements and returns into 2026.” .
  • CFO (call): “We expect to exit the year with the core net interest margin reaching approximately 3.45%, inclusive of recent acquisitions… non-interest income $22–$24M and adjusted expenses $110–$112M in Q4.” .
  • CSO (call): “We will de-lever in Q4 as higher-cost brokered deposits and FHLB advances run off, adding low-cost deposits from The Villages.” .

Q&A Highlights

  • Growth outlook and Villages: Management reaffirmed high single-digit organic loan growth and highlighted Villages’ low-cost deposits enabling margin expansion and balance sheet optimization into 2026 .
  • Margin path: September cost of funds already down to ~1.92%; Q4 NIM supported by payoff of ~$167M brokered and ~$175M FHLB at ~4.2%; deposit beta expected to trend toward ~30% .
  • Atlanta expansion: Building CRE and C&I teams; plans for a handful of branches over 3–5 years, leveraging connectivity with Florida customers .
  • Integration timeline and cost saves: Villages system conversion planned for early Q3 2026; cost saves to be realized in H2 2026 .
  • Competitive pricing: Credit spreads “remarkably tight” in stabilized CRE and strong C&I; SBCF picking spots prudently .

Estimates Context

  • EPS: SBCF delivered $0.52 vs. Primary EPS Consensus Mean of $0.458; a clear beat driven by net interest income growth and expense control (ex-merger costs). Company-reported adjusted EPS was $0.52 *.
  • Revenue: S&P Global “Revenue” actual $148.9M vs. consensus $154.5M (miss). Company-reported net revenues were $157.3M (+4% q/q), reflecting definitional differences between standardized revenue and company net revenue *.

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Near-term: Expect core NIM expansion into Q4 (~3.45% guided) as SBCF de-levers high-cost funding and layers on low-cost Villages deposits; supports tactical long exposure into prints tied to margin milestones .
  • Earnings quality: Adjusted EPS beat and improving adjusted efficiency (53.84% vs. 55.36% in Q2) indicate operating leverage despite integration costs; watch noninterest income range ($22–$24M) and securities marks .
  • Balance sheet optionality: Loan-to-deposit ratio targeted below ~75% at YE enables disciplined loan growth at attractive spreads; combined franchise scale enhances funding durability .
  • Fee diversification: Wealth management is a secular growth vector with record AUM additions, improving cross-sell and relationship depth—supportive for noninterest income stability .
  • Credit: Asset quality remains strong (NPL 0.55%; NCOs 0.12% annualized; ACL 1.34%); monitor criticized/classified levels and competitive pricing pressure in CRE/C&I .
  • Capital return: Dividend increased to $0.19; strong Tier 1 (14.5%) and tangible common equity (~9.76%) provide room for organic and acquisitive growth while sustaining payouts .
  • Watchlist: Q4 delivery on NIM/expense guidance, deposit beta trajectory (~30%), Villages integration milestones, and any shifts in SBA gain-on-sale and securities AOCI trends .