Executive Summary

Q4 2024 delivered margin-led earnings strength: net interest margin rose 22 bps to 3.39% (core NIM ex-accretion +15 bps to 3.05%), with deposit costs falling 26 bps to 2.08% and diluted EPS improving to $0.40 (adjusted EPS $0.48) .
Adjusted pre-tax pre-provision earnings increased 22% q/q to $56.6M; adjusted net revenues climbed to $141.6M, offset in GAAP by an $8.0M loss from a strategic AFS securities repositioning, which lifted portfolio yields and has an earnback of <3 years .
Loans grew 3.7% annualized to $10.30B on record $903M originations; pipelines ended at $693M from $831M in Q3 as year-end clearing and hurricane timing weighed near term, but management signaled strong momentum entering 2025 .
Capital and liquidity remain robust (Tier 1 14.8%, TCE/TA 9.6%, L/D 84.3%); criticized/classified loans fell to 2.17% of loans, while NPLs rose to 0.90% on well-collateralized credits with no losses expected .
Estimates context: S&P Global consensus EPS and revenue for Q4 2024 were unavailable at time of writing, so beat/miss cannot be assessed (S&P Global request limit exceeded).

What Went Well and What Went Wrong

What Went Well
- Strong core margin expansion: “Net interest margin expanded 22 bps to 3.39%, and excluding accretion, expanded 15 bps to 3.05%...cost of deposits declined 26 bps to 2.08%” .
- Record production and revenue growth despite hurricanes: “Associates weathered two successive hurricanes to deliver remarkable revenue growth, record loan production, and a 33% increase in adjusted net income” (CEO) .
- Asset quality resilience and mix actions: sale of two nonperforming CRE loans at a gain reduced criticized/classified balances; gains on SBIC investments and sale of NP CRE loans lifted other income .
What Went Wrong
- GAAP noninterest income was depressed by the $8.0M securities repositioning loss (adjusted NI rose q/q): “Noninterest income totaled $17.1M…included an $8.0M loss…reinvested at 5.4% MBS with earnback <3 years” .
- NPLs increased to 0.90% (vs 0.79% in Q3), driven by a small number of credits, though collateral exceeded balances and losses not expected .
- Consumer fintech runoff and related $3.0M charge-down affected charge-offs (NCOs $6.1M; 0.24% of average loans) and loan yield ex-accretion (-10 bps) .

Financial Results

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Net Revenues ($USD ‘000s)	$128,157	$126,608	$130,344	$132,872
Net Interest Income ($USD ‘000s)	$110,819	$104,424	$106,665	$115,804
Noninterest Income ($USD ‘000s)	$17,338	$22,184	$23,679	$17,068
Diluted EPS ($)	$0.35	$0.36	$0.36	$0.40
Adjusted Diluted EPS ($)	$0.37	$0.36	$0.36	$0.48
Net Interest Margin (%)	3.36%	3.18%	3.17%	3.39%
NIM ex-accretion (%)	3.02%	2.87%	2.90%	3.05%
Cost of Deposits (%)	2.00%	2.31%	2.34%	2.08%
Loan Yields (%)	5.85%	5.93%	5.94%	5.93%
Securities Yields (%)	3.42%	3.69%	3.75%	3.77%
Efficiency Ratio (%)	60.32%	60.21%	59.84%	56.26%
Adjusted Efficiency Ratio (%)	60.32%	60.21%	59.84%	56.07%

Noninterest income breakdown (Q4 2024):

Component	Amount ($USD ‘000s)
Service charges on deposits	5,138
Interchange income	1,860
Wealth management income	4,019
Mortgage banking fees	326
Insurance agency income	1,151
BOLI income	2,627
Other income	10,335
Adjusted noninterest income (ex-securities)	25,456
Securities (losses) gains, net	(8,388)
Total noninterest income (GAAP)	17,068

Loan portfolio by segment (End of Q4 2024):

Category	Q4 2024 ($USD ‘000s)	Q3 2024 ($USD ‘000s)
Construction & land development	648,054	595,753
CRE – owner occupied	1,686,629	1,676,814
CRE – non-owner occupied	3,503,807	3,573,076
Residential real estate	2,616,784	2,564,903
Commercial & financial	1,651,355	1,575,228
Consumer	193,321	219,507
Total loans	10,299,950	10,205,281

Key KPIs

KPI	Q2 2024	Q3 2024	Q4 2024
Gross loans ($USD ‘000s)	10,038,508	10,205,281	10,299,950
Total deposits ($USD ‘000s)	12,116,118	12,243,585	12,242,427
Total assets ($USD ‘000s)	14,952,613	15,168,371	15,176,308
NPL / Loans (%)	0.60%	0.79%	0.90%
ACL / Loans (%)	1.41%	1.38%	1.34%
Net charge-offs ($USD ‘000s)	9,946	7,445	6,113
Loan pipelines ($USD ‘000s)	834,433	831,081	693,329
TBV/share ($)	15.41	16.20	16.12
TCE/TA (%)	9.30%	9.64%	9.60%
Tier 1 capital ratio (%)	14.8%	14.8%	14.8%
Loan-to-deposit (%) (end)	82.90%	83.44%	84.27%

Guidance Changes

Metric	Period	Previous Guidance	Current/Actual	Change
Core NIM expansion	Q4 2024	+5–10 bps (Q3 call)	+15 bps (2.90% → 3.05% ex-accretion)	Beat (above guidance)
Noninterest income (adjusted, ex-securities)	Q4 2024	$22–23M (Q3 call)	$25.5M adjusted NI	Above guidance
Noninterest expense (GAAP)	Q4 2024	$84–86M (Q3 call)	$85.6M	In line
Core NIM expansion	Q1 2025	—	+7–10 bps expected (core)	New
Core NIM (exit)	FY 2025	—	~3.35% with one Fed cut; +~5 bps with an extra cut	New
Noninterest income (GAAP)	Q1 2025	—	$20–22M expected	New
Loan growth	2025	—	Low–mid single-digit early, high single-digit by YE	New
Deposit costs	2025	—	Stabilize; slight drift up if no Fed cut	New
Dividend	Ongoing	$0.18/qtr (prior)	Declared $0.18 payable Mar 31, 2025	Maintained
Share repurchase	Through 2025	—	Renewed program, up to $100M through Dec 31, 2025	New capacity

Earnings Call Themes & Trends

Topic	Q2 2024 (Q-2)	Q3 2024 (Q-1)	Q4 2024 (Current)	Trend
Loan growth & pipeline	2.4% ann.; pipeline +46% to $834M; momentum from hires	6.6% ann.; pipeline $831M; originations up; organic momentum	3.7% ann.; record $903M originations; pipeline $693M post year-end/hurricane; strong 2025 start	Building; near-term seasonal dip; structurally stronger
Margin & deposit costs	NIM trough noted; cost of deposits stabilized at 2.33% exit	Core NIM +3 bps; guided +5–10 bps Q4; deposit costs to decline	NIM +22 bps; core +15 bps; deposit costs -26 bps to 2.08%; more expansion expected	Accelerating
Securities repositioning	None disclosed	Planned/early Q4 restructure; AFS loss ~$8M, reinvest at ~5.4% MBS	Executed; $8.0M loss; earnback <3 years	Yield-enhancing actions
Hurricanes impact	Noted across footprint; minimal branch impact	Two hurricanes; fee waivers; potential ACL build flagged	Navigated; no hurricane ACL needed in Q4	Transient
Wealth management	AUM $1.9B (+12% YTD); revenue up	AUM ~$2.0B (+20% YoY); strong milestones	AUM $2.1B (+20% YoY); strongest year on record	Sustained growth
Asset quality	NPL down q/q; ACL 1.41%; criticized/classified ~2.59%	NPL up but collateral strong; ACL 1.38%; criticized/classified flat	Criticized/classified ↓ to 2.17%; NPL 0.90% with collateral > balances; NCOs fell	Stable/improving mix
M&A posture	Optionality; math/earnback disciplined	Opportunistic; conversations accelerating; pricing discipline	Active but selective; excess capital deployment possible	Selective
Expenses	Adjusted down 4th consecutive quarter; focus on discipline	Well-controlled; guided Q4 $84–86M	$85.6M; adjusted efficiency 56.07%; discipline continues	Lean and investing

Management Commentary

CEO (Q4 press release): “The strong net interest margin expansion in the fourth quarter evidenced the solid, granular core deposit franchise…With accelerating business momentum and tailwinds from fixed rate asset repricing, we remain focused on profitability improvement and growth in the year ahead” .
CEO (Q4 call): “Adjusted pretax preprovision earnings were $56.6M…net interest margin expanded by 22 bps to 3.39%…record loan production with originations of $900M during the period” .
CFO (Q4 call): “Looking ahead to the first quarter, we expect continued expansion of net interest income and expect the core net interest margin to expand another approximately 7 to 10 bps…exit the year with core net interest margin around 3.35%” .
CFO (Q4 press release): “Noninterest income, excluding securities activity, increased $2.0M…gains on SBIC investments and gains on the sale of two nonperforming CRE loans” .

Q&A Highlights

Loan growth trajectory: “Low- to mid-single digits early in the year and moving to high-single digits late in the year...pipeline down seasonally at year-end but building back” .
Yields on new production: “Q4 add-on rates a little above 7%; competition exists but yield curve supportive into 2025” .
Capital deployment/M&A: “Post-election, conversations have accelerated…we are active and will be opportunistic if pricing makes sense” .
Loan sales: “~$20M consumer fintech sold with ~$3M charge-down; ~$20M NP CRE sold at gain reducing classified balances” .
Deposit funding: Focus on relationship DDA growth; can grow deposits slower than loans and fully fund; >$350M securities cash flow available for 2025 .
Purchase accounting accretion: Expect step-down toward recent lower run-rate ($9–10M/qtr), acknowledging variability .

Estimates Context

S&P Global consensus estimates for Q4 2024 EPS and revenue were unavailable due to request limit; therefore, we cannot assess beat/miss versus Street. Values retrieved from S&P Global were not available at time of writing.

Key Takeaways for Investors

Margin inflection appears durable: deposit cost downshift and back-book repricing support further core NIM expansion in Q1 2025 (+7–10 bps), with FY25 exit ~3.35% under current rate path .
Adjusted earnings power is stronger than GAAP optics: ex the $8.0M repositioning loss, adjusted noninterest income rose and core NIM expansion outpaced prior guidance .
Growth runway intact: record originations and robust hires underpin loan growth ramp into 2025 despite near-term seasonal pipeline normalization .
Credit remains well managed: criticized/classified balances declined; NPLs are well-collateralized; ACL coverage plus purchase discounts provide 2.6–2.9% total loss-absorption (period dependent) .
Liquidity and capital give flexibility: Tier 1 at 14.8%, TCE/TA 9.6%, L/D 84% and liquidity sources at 167% of uninsured & uncollateralized deposits support organic growth and selective capital actions .
Tactical securities actions raise earning-asset yields: the Q4 repositioning should contribute positively over its <3-year earnback horizon, enhancing portfolio returns .
Near-term setup: management guides Q1 2025 noninterest income to $20–22M and continued NII/NIM expansion; watch deposit betas, credit normalization pace, and execution on C&I deposit capture .

Sources: Q4 2024 press release and 8‑K (financial statements, highlights, capital & liquidity, asset quality), Q4 2024 earnings call transcript (prepared remarks and Q&A), Q3 and Q2 2024 releases and calls for trend and guidance references. All data points are cited per cell or statement above.

SEACOAST BANKING CORP OF FLORIDA (SBCF)·Q4 2024 Earnings Summary