SEACOAST BANKING CORP OF FLORIDA (SBCF)·Q4 2025 Earnings Summary
Seacoast Banking Beats on VBI Acquisition Strength, Guides to 35% EPS Growth in 2026
January 29, 2026 · by Fintool AI Agent
Seacoast Banking Corporation of Florida (NASDAQ: SBCF) reported Q4 2025 results that exceeded expectations, with the transformative Villages Bancorporation acquisition driving significant balance sheet expansion. Net interest income surged 31% quarter-over-quarter to $174.6 million, while the company provided bullish 2026 guidance implying 35% adjusted EPS growth.
Updated January 30, 2026 with earnings call Q&A highlights and management commentary.
Did Seacoast Beat Earnings?
Yes — on both EPS and revenue.
*Values retrieved from S&P Global. GAAP EPS was $0.31 due to $18.1M in merger costs and $23.4M day-one VBI credit provisions.
Beat/miss history (last 8 quarters): Seacoast has beaten EPS estimates in all 8 quarters, demonstrating consistent execution through the rate cycle.
*Values retrieved from S&P Global
How Did the Stock React?
SBCF shares rose +1.7% to $34.12 on the earnings release, continuing a strong run that has seen the stock gain 60% from its 52-week low of $21.36.
The stock is trading near its 52-week high of $35.46, reflecting investor optimism around the VBI integration and 2026 earnings trajectory.
Ask Fintool AI AgentWhat Changed From Last Quarter?
The VBI acquisition closed October 1, 2025, transforming Seacoast's balance sheet:
VBI added: $4.4 billion in assets, $1.2 billion in loans, $3.5 billion in deposits, and 19 branches in The Villages® community and North Central Florida.
Wealth management momentum: AUM increased 37% year-over-year with a 23% annual CAGR over the past 5 years. The team added $550 million in new AUM during 2025.
What's Driving Net Interest Income Growth?
Net interest income of $174.6 million increased 31% from Q3 2025, driven by:
- VBI acquisition impact — Added $2.5B in securities, $1.2B in loans
- Organic loan growth — 15% annualized excluding VBI
- Deposit cost reduction — Cost of deposits fell 14 bps to 1.67%
- Securities yield improvement — Portfolio yield up 21 bps to 4.13%
Securities repositioning in January 2026: Management sold $277 million in low-yielding securities (1.9% book yield) and reinvested in agency MBS at 4.8% yield, taking a $39.5 million pre-tax loss in Q1 2026 but immediately improving earnings power.
What Did Management Guide?
2026 Outlook is bullish:
Q4 2026 targets: 1.30% Adjusted ROA and 16.0% Adjusted ROTE, up from 0.89% and 12.0% in Q4 2025.
VBI capital outperformance: The acquisition closed with 90 bps more total risk-based capital ($92 million) than originally projected at deal announcement (14.7%), driven by lower securities marks and credit marks. This accelerated the tangible book value earn-back period.
Assumptions: 25 bps Fed rate cuts in June and September 2026, stable economic environment, includes benefit of January 2026 securities repositioning.
Ask Fintool AI AgentWhat About Credit Quality?
Asset quality remains solid despite acquisition noise:
Q4 provision: $29.3 million, primarily driven by the $22.7 million day-one VBI loan loss provision for non-PCD loans.
Net charge-offs were just $0.9 million (3 bps annualized), down from $3.2 million in Q3 2025. Full-year 2025 NCOs were 12 bps vs. 27 bps in 2024.
Key Management Quotes
CEO Charles M. Shaffer on Q4 results:
"The Seacoast team delivered another exceptional quarter, highlighted by the closing of the Villages acquisition and strong growth in loans. Loan outstandings grew at an annualized rate of 15%, driven by the continued success of our commercial banking team."
On The Villages mortgage portfolio:
"The residential loans we added this quarter were very high-quality credits with high FICOs, strong yields, and generally shorter expected lives than traditional mortgage products, given the unique characteristics of this borrower base."
On 2026 outlook and 100th anniversary:
"We closed out a truly transformational year, one marked by industry-leading loan growth, two exceptional acquisitions, and meaningful investments across our company that position us for long-term strength... it's especially gratifying to enter our hundredth anniversary in 2026 with such a strong foundation."
On long-term efficiency ratio target:
"A long-term sort of view on efficiency ratio, one way to think about things is probably low to mid-50s type efficiency ratio target is where we want to operate the company over the cycle."
Capital Position
Seacoast maintains a fortress balance sheet:
*Estimated
Liquidity: $388.5 million cash plus $7.6 billion available borrowing capacity (including $3.4B collateralized credit lines, $3.8B unpledged securities, $348M unsecured lines).
What Did Analysts Ask About?
Q1 2026 Margin Outlook: CFO Tracey Dexter and CSO Michael Young guided to 10-15 basis points of margin expansion in Q1 2026, with securities yield expected to reach 4.40-4.50%. Average earning assets will decline ~$200 million due to seasonal public funds runoff and repositioning-related cash deployment.
Loan Growth Drivers: CEO Shaffer broke down Q4's 15% annualized loan growth: ~10% from legacy Seacoast commercial banking hires, 2-3% from The Villages mortgage portfolio, and 1-2% from slower paydowns. The company is guiding to high single-digit growth in 2026 with optionality from The Villages portfolio.
Banker Hiring Strategy: Management plans to increase banker count by ~15% (approximately 15 bankers) in 2026. Most benefit will be realized in 2027-2028 given ramp time. This hiring push is enabled by stronger profitability and industry merger disruption creating talent availability.
Atlanta Market Expansion: The Georgia market now has ~10 bankers. Shaffer expects to build to a 5-branch footprint with 15-20 bankers plus Treasury support over the next 3 years.
Florida Real Estate Conditions: Shaffer provided nuanced market color:
- Condos: Weak due to retrofit requirements for new standards; uncertainty until retrofits complete
- Southeast Florida (Palm Beach to Miami-Dade): "Exceptionally strong" — prices haven't come down much, demand remains robust
- West Coast (Fort Myers/Cape Coral): Prices declining due to post-COVID overdevelopment
Capital Return: Management acknowledged growing capital levels will create optionality for dividends and buybacks, but near-term focus is on executing The Villages conversion (July 2026).
Efficiency Ratio Change: The adjusted efficiency ratio now includes intangible asset amortization (~$10.4M in Q4), a change from prior presentation. This added approximately 400 bps to the reported ratio.
What to Watch Going Forward
- VBI integration — Technology conversion now targeted for July 2026; execution risk remains
- Rate sensitivity — 2026 guidance assumes two 25 bps cuts; more cuts could pressure NIM
- Banker ramp-up — 15% headcount increase planned; benefits won't materialize until 2027-2028
- Florida real estate pockets — West Coast (Fort Myers/Cape Coral) showing price declines; condo market weak
- Securities repositioning impact — $39.5M loss hits Q1 2026 but drives immediate NIM expansion
- Payoff dynamics — Management expects higher payoffs in 2026 vs 2025; construction loan maturities from 2023 pullback will create headwinds in 2027-2029
Ask Fintool AI AgentEarnings Call Resources
This analysis was generated by Fintool AI Agent based on Seacoast Banking's Q4 2025 8-K filing, earnings presentation, and earnings call transcript.