Seacoast Banking Q3 2026 earnings rise 64% to $59.9M
Higher loan and securities balances after 2025 acquisitions supported a 37% year-over-year increase in quarterly net interest income.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
10-Q
Seacoast Banking Corporation of Florida (SBCF) reported third-quarter 2026 net income of $59.9 million, or $0.55 per diluted share, up 64% from $36.5 million a year earlier. Net interest income reached $183.4 million, up 37% year over year, primarily reflecting higher loan and securities balances following 2025 acquisitions. For the first nine months, net income was $151.3 million versus $110.6 million.
Organic loans grew at a 13% annualized rate in the third quarter. Net interest margin was 3.83%, unchanged from the prior quarter, while the cost of deposits rose to 1.60% from 1.53%. The company completed integration of Villages Bancorporation in the third quarter and repurchased more than 1.2 million common shares year to date.
Nine-month net securities losses were $40.126 million, versus $0.606 million in 2025, including $39.6 million of gross losses on securities sales. Third-quarter other comprehensive loss was $176.1 million, reflecting $180.0 million in after-tax unrealized losses on available-for-sale securities; management attributed the specified debt-security losses to rate and spread movements and said it expects to recover their amortized cost.
3 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter net income rose 64% year over year.
- Moderate pointThird-quarter net interest income increased 37% year over year.
- Moderate pointNine-month operating cash flow was $272.162 million, versus $133.548 million in 2025.
Negative
- Moderate pointNine-month net securities losses totaled $40.126 million, versus $0.606 million in 2025. 1.2% of market cap
Filing Explained
At September 30, Seacoast reported
Key Figures
Net income: $59.9 million
Diluted earnings per share: $0.55 per share
Net interest income: $183.4 million
+4 more
7 metrics
Net income
$59.9 million
Third quarter of 2026; $36.5 million in the third quarter of 2025
Diluted earnings per share
$0.55 per share
Third quarter of 2026; $0.42 per share in the third quarter of 2025
Net interest income
$183.4 million
Third quarter of 2026; 37% higher than the third quarter of 2025
Annualized organic loan growth
13%
Third quarter of 2026
Net interest margin
3.83%
Third quarter of 2026; unchanged from the second quarter of 2026
Net securities losses
$40.126 million
Nine months ended September 30, 2026; $0.606 million in the same 2025 period
Net cash provided by operating activities
$272.162 million
Nine months ended September 30, 2026; $133.548 million in the same 2025 period
Key Terms
net interest margin, accretion on acquired loans, available-for-sale securities, core deposit intangibles
4 terms
net interest margin financial
"Net interest margin (on an FTE basis) was stable at 3.83%"
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
accretion on acquired loans financial
"Accretion on acquired loans was $8.5 million in the third quarter of 2026"
available-for-sale securities financial
"Unrealized losses on AFS securities"
Available-for-sale securities are investments in stocks, bonds or similar instruments that a company does not intend to trade frequently but may sell before they mature. They matter to investors because changes in the market value of these holdings show up as paper gains or losses on the company's balance sheet rather than immediately in profit, so they can affect reported net worth and the timing of income without changing day-to-day earnings. Think of them like items on a household shelf you might sell later: their value moves with the market even if you haven’t cashed out.
core deposit intangibles financial
"CDI | Core deposit intangibles"
Core deposit intangibles are the recorded value placed on a bank’s customer deposits when one financial institution buys another, reflecting the extra worth of stable, low-cost accounts that are expected to stay after the sale. Investors care because this value is written into the buyer’s books and gradually expensed over time, which affects reported earnings and signals how much the market values the predictability and cost advantage of those customer relationships—similar to paying extra for a neighborhood store because its regular customers keep coming back.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did SBCF earn in the third quarter of 2026?
Seacoast reported $59.9 million in net income for the third quarter of 2026, or $0.55 per diluted share. Net income was $36.5 million, or $0.42 per diluted share, in the third quarter of 2025.
What was SBCF's net interest income in the third quarter of 2026?
Net interest income was $183.4 million, up 37% from the third quarter of 2025. The company attributed the year-over-year increase primarily to higher loan and securities balances following acquisitions completed in 2025.
What was Seacoast's latest acquisition?
On July 1, 2026, Seacoast, through its wholly owned Nature Coast Insurance subsidiary, completed its acquisition of W.L. Hunter Insurance Agency, LLC for $5.8 million. The company recognized $2.9 million each in goodwill and a customer relationship intangible asset; the intangible asset is being amortized over 10 years.
How many branches did Seacoast add with its VBI acquisition?
Seacoast completed its acquisition of Villages Bancorporation, Inc. on October 1, 2025, adding 19 branches in North Central Florida, including The Villages community. Seacoast acquired 100% of VBI's outstanding common stock.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
For the quarterly period ended September 30, 2026
OR
For the transition period from _______________ to __________________.
Commission File No. 0-13660
(Exact Name of Registrant as Specified in its Charter)
| (State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |||||||||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||||||||
| (Registrant’s Telephone Number, Including Area Code) | |||||||||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
Common Stock, $0.10 Par Value – 96,482,082 shares outstanding as of October 15, 2026
Table of Contents
INDEX
SEACOAST BANKING CORPORATION OF FLORIDA
Glossary of Defined Terms | 3 | |||||||
Part I | FINANCIAL INFORMATION | |||||||
Item 1. | Financial Statements (Unaudited) | |||||||
Consolidated statements of income – Three and nine months ended September 30, 2026 and 2025 | 5 | |||||||
Consolidated statements of comprehensive income (loss) – Three and nine months ended September 30, 2026 and 2025 | 7 | |||||||
Consolidated balance sheets - September 30, 2026 and December 31, 2025 | 8 | |||||||
Consolidated statements of cash flows – Nine months ended September 30, 2026 and 2025 | 9 | |||||||
Consolidated statements of shareholders’ equity - Three and nine months ended September 30, 2026 and 2025 | 11 | |||||||
Notes to Consolidated Financial Statements | 13 | |||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 40 | ||||||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 60 | ||||||
Item 4. | Controls and Procedures | 61 | ||||||
Part II | OTHER INFORMATION | |||||||
Item 1. | Legal Proceedings | 61 | ||||||
Item 1A. | Risk Factors | 61 | ||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 63 | ||||||
Item 3. | Defaults upon Senior Securities | 63 | ||||||
Item 4. | Mine Safety Disclosures | 63 | ||||||
Item 5. | Other Information | 63 | ||||||
Item 6. | Exhibits | 63 | ||||||
SIGNATURES | 66 | |||||||
2
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| Glossary of Defined Terms | ||||||||||||||
| Term | Definition | Term | Definition | |||||||||||
| ACL | Allowance for credit losses | GAAP | Accounting principles generally accepted in the United States of America | |||||||||||
| AFS | Available-for-sale | Heartland | Heartland Bancshares, Inc. | |||||||||||
| ALCO | Asset and Liability Management Committee | HELOC | Home equity line of credit | |||||||||||
| AOCI | Accumulated other comprehensive income (loss) | HTM | Held-to-maturity | |||||||||||
| ARM | Adjustable-rate mortgage | IRLC | Interest Rate Lock Commitment | |||||||||||
| ASC | Accounting Standards Codification | LTV | Loan-to-value | |||||||||||
| ASU | Accounting Standards Update | Moody's | Moody's Analytics | |||||||||||
| BHC | Bank Holding Company | MSR | Mortgage servicing rights | |||||||||||
| BOLI | Bank owned life insurance | NAV | Net Asset Value | |||||||||||
| CDI | Core deposit intangibles | NPA | Nonperforming asset | |||||||||||
| CEO | Chief Executive Officer | OCC | Office of the Comptroller of the Currency | |||||||||||
| CET1 | Common equity tier 1 | OREO | Other real estate owned | |||||||||||
| CLO | Collateralized loan obligation | ROA | Return on average assets | |||||||||||
| CODM | Chief operating decision maker | ROE | Return on average equity | |||||||||||
| CRA | Community Reinvestment Act | ROTE | Return on average tangible equity | |||||||||||
| CRE | Commercial Real Estate | PCD | Purchased credit deteriorated | |||||||||||
| DTA | Deferred tax asset | REIT | Real estate investment trust | |||||||||||
| EPS | Earnings per share | ROUA | Right-of-use asset | |||||||||||
| ESG | Environmental, social and governance | SBIC | Small business investment companies | |||||||||||
| EVE | Economic value of equity | SEC | Securities and Exchange Commission | |||||||||||
| FASB | Financial Accounting Standards Board | SOFR | Secured Overnight Financing Rate | |||||||||||
| FDIC | Federal Deposit Insurance Corporation | TBA | To-Be-Announced | |||||||||||
| FHLB | Federal Home Loan Bank | TBM | Troubled borrower modification | |||||||||||
| FICO | Fair Isaac Corporation (credit score) | VBI | Villages Bancorporation, Inc. | |||||||||||
| FRB | Federal Reserve Board | XBRL | eXtensible Business Reporting Language | |||||||||||
| FTE | Fully taxable equivalent | |||||||||||||
3
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Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
4
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SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| (In thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Interest and fees on loans | $ | $ | $ | $ | ||||||||||||||||||||||
| Interest and dividends on securities | ||||||||||||||||||||||||||
| Interest on interest-bearing deposits and other investments | ||||||||||||||||||||||||||
| Total Interest Income | ||||||||||||||||||||||||||
| Interest on deposits | ||||||||||||||||||||||||||
| Interest on time certificates | ||||||||||||||||||||||||||
| Interest on borrowed money | ||||||||||||||||||||||||||
| Total Interest Expense | ||||||||||||||||||||||||||
| Net Interest Income | ||||||||||||||||||||||||||
| Provision for credit losses | ||||||||||||||||||||||||||
| Net Interest Income after Provision for Credit Losses | ||||||||||||||||||||||||||
| Noninterest income: | ||||||||||||||||||||||||||
| Service charges on deposit accounts | ||||||||||||||||||||||||||
| Wealth management income | ||||||||||||||||||||||||||
| Mortgage banking income | ||||||||||||||||||||||||||
| Interchange income | ||||||||||||||||||||||||||
| Insurance agency income | ||||||||||||||||||||||||||
| BOLI income | ||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||
| Total Noninterest Income Before Securities (Losses) Gains, Net | ||||||||||||||||||||||||||
| Securities losses, net | ( | ( | ( | ( | ||||||||||||||||||||||
| Total Noninterest Income | ||||||||||||||||||||||||||
| Noninterest expense: | ||||||||||||||||||||||||||
| Salaries and employee benefits | ||||||||||||||||||||||||||
| Outsourced data processing costs | ||||||||||||||||||||||||||
| Occupancy | ||||||||||||||||||||||||||
| Furniture and equipment | ||||||||||||||||||||||||||
| Marketing | ||||||||||||||||||||||||||
| Legal and professional fees | ||||||||||||||||||||||||||
| FDIC assessments | ||||||||||||||||||||||||||
| Amortization of intangibles | ||||||||||||||||||||||||||
| OREO expense and net loss (gain) on sale | ( | ( | ||||||||||||||||||||||||
| Provision for credit losses on unfunded commitments | ||||||||||||||||||||||||||
| Merger and integration costs | ||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||
| Total Noninterest Expense | ||||||||||||||||||||||||||
| Income Before Income Taxes | ||||||||||||||||||||||||||
| Provision for income tax expense | ||||||||||||||||||||||||||
| Net Income | ||||||||||||||||||||||||||
| Preferred dividends | ||||||||||||||||||||||||||
| Net income available to common shareholders | $ | $ | $ | $ | ||||||||||||||||||||||
5
Table of Contents
| Net income per share of common stock | ||||||||||||||||||||||||||
| Diluted | $ | $ | $ | $ | ||||||||||||||||||||||
| Basic | ||||||||||||||||||||||||||
| Average common shares outstanding | ||||||||||||||||||||||||||
| Diluted | ||||||||||||||||||||||||||
| Basic | ||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
6
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SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)
| (In thousands) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Net Income | $ | $ | $ | $ | ||||||||||||||||||||||
| Other comprehensive (loss) income: | ||||||||||||||||||||||||||
Unrealized (losses) gains on AFS securities, net of tax benefit of $ | ( | ( | ||||||||||||||||||||||||
Amortization of unrealized gains on securities transferred to HTM, net of nominal tax benefit in each period for the three and nine months ended September 30, 2026 and 2025 | ( | ( | ( | ( | ||||||||||||||||||||||
Reclassification adjustment for losses included in net income, net of tax benefit of $ | ||||||||||||||||||||||||||
Unrealized gains on derivatives designated as fair value hedges, net of reclassifications to income, net of nominal tax expense for the nine months ended September 30, 2025 | ||||||||||||||||||||||||||
Unrealized gains on derivatives designated as cash flow hedges, net of reclassifications to income, net of tax expense of $ | ||||||||||||||||||||||||||
| Total other comprehensive (loss) income | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
| Comprehensive (Loss) Income | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
See notes to unaudited consolidated financial statements.
7
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SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
| September 30, 2026 | December 31, 2025 | |||||||||||||
| (In thousands, except share data) | ||||||||||||||
| Assets | ||||||||||||||
| Cash and due from banks | $ | $ | ||||||||||||
| Interest-bearing deposits with other banks | ||||||||||||||
| Total cash and cash equivalents | ||||||||||||||
| Time deposits with other banks | ||||||||||||||
| Debt securities: | ||||||||||||||
| Securities AFS (at fair value) | ||||||||||||||
Securities HTM (fair value $ | ||||||||||||||
| Total debt securities | ||||||||||||||
| Loans held for sale | ||||||||||||||
| Loans | ||||||||||||||
| ACL | ( | ( | ||||||||||||
| Loans, net of ACL | ||||||||||||||
| Bank premises and equipment, net | ||||||||||||||
| Goodwill | ||||||||||||||
| Other intangible assets, net | ||||||||||||||
| BOLI | ||||||||||||||
| Net DTAs | ||||||||||||||
| Other assets | ||||||||||||||
| Total Assets | $ | $ | ||||||||||||
| Liabilities | ||||||||||||||
| Deposits | $ | $ | ||||||||||||
| Securities sold under agreements to repurchase | ||||||||||||||
| FHLB and other borrowings | ||||||||||||||
| Long-term debt, net | ||||||||||||||
| Other liabilities | ||||||||||||||
| Total Liabilities | ||||||||||||||
Convertible preferred stock, par value $ | ||||||||||||||
| Shareholders’ Equity | ||||||||||||||
Common stock, par value $ | ||||||||||||||
| Additional paid-in capital | ||||||||||||||
| Retained earnings | ||||||||||||||
| Treasury stock | ( | ( | ||||||||||||
| Total Shareholders' Equity Before Accumulated Other Comprehensive Loss, Net | ||||||||||||||
| Accumulated other comprehensive loss, net | ( | ( | ||||||||||||
Total Shareholders’ Equity | ||||||||||||||
Total Liabilities, Convertible Preferred Stock and Shareholders’ Equity | $ | $ | ||||||||||||
See notes to unaudited consolidated financial statements.
8
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SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
| Nine Months Ended September 30, | ||||||||||||||
| (In thousands) | 2026 | 2025 | ||||||||||||
| Cash Flows from Operating Activities | ||||||||||||||
| Net income | $ | $ | ||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Depreciation | ||||||||||||||
| Accretion of discounts on securities, net | ( | ( | ||||||||||||
| Amortization of operating lease ROUAs | ||||||||||||||
| Other amortization and accretion, net | ||||||||||||||
| Stock-based compensation | ||||||||||||||
| Origination of loans designated for sale | ( | ( | ||||||||||||
| Sale of loans designated for sale | ||||||||||||||
| Provision for credit losses | ||||||||||||||
| Deferred income taxes | ||||||||||||||
| Losses on securities | ||||||||||||||
| Gains on sale of loans | ( | ( | ||||||||||||
| Losses (gains) on sale and write-downs of bank premises, equipment and OREO | ( | |||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||
| Net increase in other assets | ( | ( | ||||||||||||
| Net increase in other liabilities | ||||||||||||||
| Net cash provided by operating activities | $ | $ | ||||||||||||
| Cash Flows from Investing Activities | ||||||||||||||
| Maturities and repayments of debt securities AFS | ||||||||||||||
| Maturities and repayments of debt securities HTM | ||||||||||||||
| Proceeds from sale of debt securities AFS | ||||||||||||||
| Purchases of debt securities AFS | ( | ( | ||||||||||||
| Maturities and redemptions of time deposits with other banks | ||||||||||||||
| Net new loans and principal repayments | ( | ( | ||||||||||||
| Proceeds from the sale of loans held for investment | ||||||||||||||
| Proceeds from sale of OREO | ||||||||||||||
| Proceeds from sale of FHLB and Federal Reserve Bank stock | ||||||||||||||
| Purchase of FHLB and Federal Reserve Bank stock | ( | ( | ||||||||||||
| Proceeds from BOLI death benefit | ||||||||||||||
| Net cash from acquisitions | ( | |||||||||||||
| Additions to bank premises and equipment | ( | ( | ||||||||||||
| Net cash used in investing activities | $ | ( | $ | ( | ||||||||||
9
Table of Contents
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
| Nine Months Ended September 30, | ||||||||||||||
| (In thousands) | 2026 | 2025 | ||||||||||||
| Cash Flows from Financing Activities | ||||||||||||||
| Net increase in deposits | $ | $ | ||||||||||||
| Net (decrease) increase in repurchase agreements | ( | |||||||||||||
| Net increase of FHLB and other borrowings with original maturities of three months or less | ||||||||||||||
| Repayments of FHLB and other borrowings with original maturities of more than three months | ( | ( | ||||||||||||
| Proceeds from FHLB and other borrowings with original maturities of more than three months | ||||||||||||||
| Stock-based employee benefit plans | ( | |||||||||||||
| Repurchase of common stock | ( | |||||||||||||
| Dividends paid | ( | ( | ||||||||||||
| Net cash provided by financing activities | $ | $ | ||||||||||||
| Net decrease in cash and cash equivalents | ( | ( | ||||||||||||
| Cash and cash equivalents at beginning of period | ||||||||||||||
| Cash and cash equivalents at end of period | $ | $ | ||||||||||||
| Supplemental disclosure of cash flow information: | ||||||||||||||
| Cash paid for interest | $ | $ | ||||||||||||
| Cash paid for taxes, net | ||||||||||||||
| Recognition of operating lease ROUAs, other than through bank acquisitions, net of terminations | ||||||||||||||
| Recognition of operating lease liabilities, other than through bank acquisitions, net of terminations | ||||||||||||||
Supplemental disclosure of non-cash investing activities:1 | ||||||||||||||
| Transfers from loans to OREO | ||||||||||||||
1See "Note 11 – Business Combinations" for non-cash transactions related to business combinations. | ||||||||||||||
See notes to unaudited consolidated financial statements.
10
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SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITY (Unaudited)
| Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Convertible Preferred Stock | Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | Shares | Amount | Shares | Amount | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2026 | $ | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||
| Comprehensive income (loss) | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock transactions related to stock-based employee benefit plans | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Repurchase of common stock | — | — | ( | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock ($ | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock ($ | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
| Three months ended September 30, 2026 | — | — | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2026 | $ | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Convertible Preferred Stock | Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | Shares | Amount | Shares | Amount | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2025 | $ | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||
| Comprehensive income (loss) | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock transactions related to stock-based employee benefit plans | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Repurchase of common stock | — | — | ( | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock ($ | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock ($ | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
| Nine months ended September 30, 2026 | — | — | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2026 | $ | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||
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| Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Convertible Preferred Stock | Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | Shares | Amount | Shares | Amount | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2025 | $ | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||
| Comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock transactions related to stock-based employee benefit plans | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock, pursuant to acquisition | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock ($ | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
| Three months ended September 30, 2025 | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2025 | $ | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Convertible Preferred Stock | Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | Shares | Amount | Shares | Amount | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2024 | $ | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||
| Comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock transactions related to stock-based employee benefit plans | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock, pursuant to acquisition | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock ($ | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
| Nine months ended September 30, 2025 | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2025 | $ | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||
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SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Note 1 – Basis of Presentation
Basis of Presentation: The accompanying unaudited consolidated financial statements of Seacoast Banking Corporation of Florida and its subsidiaries (the “Company”) have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Certain prior period amounts have been reclassified to conform to the current period presentation.
Use of Estimates: The preparation of these consolidated financial statements requires management to make judgments in the application of certain accounting policies that involve significant estimates and assumptions. The Company has established policies and control procedures that are intended to ensure valuation methods are well-controlled and applied consistently from period to period. These estimates and assumptions, which may materially affect the reported amounts of certain assets, liabilities, revenues, and expenses, are based on information available as of the date of the financial statements, and changes in this information over time and the use of revised estimates and assumptions could materially affect amounts reported in subsequent financial statements. Specific areas, among others, requiring the application of management’s estimates include the determination of the ACL, acquisition accounting and purchased loans, intangible assets and impairment testing, and other fair value measurements.
Issued Accounting Standards Not Yet Adopted
In November 2024, the FASB issued ASU 2024-03, Expense Disaggregation Disclosures. ASU 2024-03 requires disclosure to disaggregate prescribed expenses within relevant income statement captions. The standard is effective for fiscal years beginning after December 15, 2026 and for interim periods after December 15, 2027. Early adoption is permitted. The Company is evaluating the impact of the changes to its existing disclosures.
In November 2025, the FASB issued ASU 2025-08, Credit Losses (Topic 326): Purchased Loans. ASU 2025-08 requires that purchased seasoned loans be accounted for using the gross-up approach. The gross-up approach requires recognition of an ACL for the estimate of credit losses at the acquisition date. The ACL is recorded with an offsetting gross-up adjustment to the purchase price of the acquired financial asset. The standard is effective for fiscal years beginning after December 15, 2026 and for interim periods within those annual reporting periods. Early adoption is permitted. The Company is evaluating the date of adoption and the impact of the changes to its consolidated financial statements and existing disclosures.
In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements. ASU 2025-09 introduces five targeted improvements to better align hedge accounting with entities’ risk management activities. The standard is effective for fiscal years beginning after December 15, 2026, and for interim periods within those annual reporting periods. Early adoption is permitted. The Company is evaluating the impact of the changes to its consolidated financial statements and existing disclosures.
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. ASU 2025-11 clarifies interim disclosure requirements and provides a comprehensive list of interim disclosures that are required by GAAP. The ASU also includes a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The standard is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating the impact of the changes to its consolidated financial statements and existing disclosures.
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Note 2 – Earnings per Share
The Company computes EPS using the two-class method. The two-class method of computing EPS is an earnings allocation formula that determines EPS for common stock and any participating securities according to dividends declared and participation rights in undistributed earnings. The Company's Series A Non-Voting Convertible Preferred Stock is a participating security. Basic EPS is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during each period. Diluted EPS is based on the weighted-average number of common shares outstanding during each period, plus common share equivalents, calculated for share-based awards outstanding using the treasury stock method and preferred shares using the more dilutive of either the two-class or if-converted method.
For each of the three and nine month periods ended September 30, 2026, options to purchase 1,505 144,826 and 327,859 , respectively, for the three and nine months ended September 30, 2025, were anti-dilutive.
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| (In thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Basic EPS | ||||||||||||||||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||||||||||||
| Less preferred stock dividends | ( | ( | ||||||||||||||||||||||||
| Net income available to common shareholders | ||||||||||||||||||||||||||
| Less allocation of earnings to preferred stock | ( | ( | ||||||||||||||||||||||||
| Net income available to common shareholders after allocation of earnings to preferred stock | $ | $ | $ | $ | ||||||||||||||||||||||
| Average common shares outstanding | ||||||||||||||||||||||||||
| Net income per share | $ | $ | $ | $ | ||||||||||||||||||||||
| Diluted EPS | ||||||||||||||||||||||||||
| Net income available to common shareholders | $ | $ | $ | $ | ||||||||||||||||||||||
| Less allocation of earnings to preferred stock | ( | ( | ||||||||||||||||||||||||
| Net income available to common shareholders after allocation of earnings to preferred stock | $ | $ | $ | $ | ||||||||||||||||||||||
| Average common shares outstanding | ||||||||||||||||||||||||||
| Add: Dilutive effect of employee restricted stock and stock options | ||||||||||||||||||||||||||
| Average diluted shares outstanding | ||||||||||||||||||||||||||
| Net income per share | $ | $ | $ | $ | ||||||||||||||||||||||
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Note 3 – Securities
The amortized cost, gross unrealized gains and losses and fair value of debt securities AFS and HTM at September 30, 2026 and December 31, 2025 are summarized as follows:
| September 30, 2026 | ||||||||||||||||||||||||||
| (In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||
| AFS Debt Securities | ||||||||||||||||||||||||||
| U.S. Treasury securities and obligations of U.S. government agencies | $ | $ | $ | ( | $ | |||||||||||||||||||||
| Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities | ( | |||||||||||||||||||||||||
| Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities | ( | |||||||||||||||||||||||||
| Private mortgage-backed securities and collateralized mortgage obligations | ( | |||||||||||||||||||||||||
| CLOs | ( | |||||||||||||||||||||||||
| Obligations of state and political subdivisions | ( | |||||||||||||||||||||||||
| Other debt securities | ( | |||||||||||||||||||||||||
| Totals | $ | $ | $ | ( | $ | |||||||||||||||||||||
| HTM Debt Securities | ||||||||||||||||||||||||||
| Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities | $ | $ | $ | ( | $ | |||||||||||||||||||||
| Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities | ( | |||||||||||||||||||||||||
| Totals | $ | $ | $ | ( | $ | |||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||||||||
| (In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||
| AFS Debt Securities | ||||||||||||||||||||||||||
| U.S. Treasury securities and obligations of U.S. government agencies | $ | $ | $ | ( | $ | |||||||||||||||||||||
| Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities | ( | |||||||||||||||||||||||||
| Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities | ( | |||||||||||||||||||||||||
| Private mortgage-backed securities and collateralized mortgage obligations | ( | |||||||||||||||||||||||||
| CLOs | ( | |||||||||||||||||||||||||
| Obligations of state and political subdivisions | ( | |||||||||||||||||||||||||
| Other debt securities | ( | |||||||||||||||||||||||||
| Totals | $ | $ | $ | ( | $ | |||||||||||||||||||||
| HTM Debt Securities | ||||||||||||||||||||||||||
| Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities | $ | $ | $ | ( | $ | |||||||||||||||||||||
| Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities | ( | |||||||||||||||||||||||||
| Totals | $ | $ | $ | ( | $ | |||||||||||||||||||||
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During the three and nine months ended September 30, 2026, debt securities with fair values of $234.0 million and $511.1 million, respectively, were sold, with gross losses of $0.1 million and $39.6 million, respectively. During the three months ended September 30, 2025, debt securities with a fair value of $245.7 million assumed in the acquisition of Heartland were sold. No gain or loss was recognized on the sale. During the three and nine months ended September 30, 2025, there were $19.8 1.0 0.5 million and $0.7 million, respectively, for the three and nine months ended September 30, 2026, and increases of $0.1 million and $0.4 million, respectively, for the three and nine months ended September 30, 2025 in the value of investments in mutual funds that invest in CRA-qualified debt securities.
At September 30, 2026, debt securities with a fair value of $2.2 billion were pledged primarily as collateral for public deposits and secured borrowings.
The amortized cost and fair value of securities HTM and AFS as of September 30, 2026, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because prepayments of the underlying collateral for these securities may occur, due to the right to call or repay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
| Held-to-Maturity | Available-for-Sale | |||||||||||||||||||||||||
| (In thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||
| Due in less than one year | $ | $ | $ | $ | ||||||||||||||||||||||
| Due after one year through five years | ||||||||||||||||||||||||||
| Due after five years through ten years | ||||||||||||||||||||||||||
| Due after ten years | ||||||||||||||||||||||||||
| Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities | ||||||||||||||||||||||||||
| Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities | ||||||||||||||||||||||||||
| Private mortgage-backed securities and collateralized mortgage obligations | ||||||||||||||||||||||||||
| CLOs | ||||||||||||||||||||||||||
| Other debt securities | ||||||||||||||||||||||||||
| Totals | $ | $ | $ | $ | ||||||||||||||||||||||
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The estimated fair value of a security is determined based on market quotations, when available, or, if not available, by using quoted market prices for similar securities, pricing models, or discounted cash flow analyses, or using observable market data. The tables below indicate the fair value of AFS debt securities with unrealized losses for which no allowance for credit losses has been recorded. Information pertaining to our securities with gross unrealized losses at September 30, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss positions is as follows:
| September 30, 2026 | ||||||||||||||||||||||||||||||||||||||
| Less Than 12 Months | 12 Months or Longer | Total1 | ||||||||||||||||||||||||||||||||||||
| (In thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
| U.S. Treasury securities and obligations of U.S. government agencies | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
| Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Private mortgage-backed securities and collateralized mortgage obligations | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| CLOs | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Obligations of state and political subdivisions | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Other debt securities | ( | ( | ||||||||||||||||||||||||||||||||||||
| Totals | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
1Comprised of 661 individual securities. | ||||||||||||||||||||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||||||||||||||||||||
| Less Than 12 Months | 12 Months or Longer | Total1 | ||||||||||||||||||||||||||||||||||||
| (In thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
| U.S. Treasury securities and obligations of U.S. government agencies | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
| Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Private mortgage-backed securities and collateralized mortgage obligations | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| CLOs | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Obligations of state and political subdivisions | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Other debt securities | ( | ( | ||||||||||||||||||||||||||||||||||||
| Totals | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
1Comprised of | ||||||||||||||||||||||||||||||||||||||
At September 30, 2026, the Company had unrealized losses of $2.7 million on U.S. Treasury securities and obligations of U.S. government agencies having a fair value of $55.2 million. These securities are either explicitly or implicitly guaranteed by the full faith and credit of the U.S. government. The Company does not expect individual securities issued by the U.S. Treasury, a U.S. agency, or a sponsored U.S. agency to incur future losses of principal. Based on the assessment of all relevant factors, the Company believes that the unrealized loss positions on these debt securities are a function of changes in investment spreads and
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interest rate movements and not changes in credit quality and expects to recover the entire amortized cost basis of these securities. Therefore, at September 30, 2026, no allowance has been recorded.
At September 30, 2026, the Company had unrealized losses of $309.0 million on commercial and residential mortgage-backed securities and collateralized mortgage obligations issued by government-sponsored entities having a fair value of $3.6 billion. These securities are either explicitly or implicitly guaranteed by the U.S. government and have a long history of no credit losses. The implied government guarantee of principal and interest payments and the high credit rating of the portfolio provide a sufficient basis for the current expectation that there is no risk of loss if default were to occur. Based on the assessment of all relevant factors, the Company believes that the unrealized loss positions on these debt securities are a function of changes in investment spreads and interest rate movements and not changes in credit quality and expects to recover the entire amortized cost basis of these securities. Therefore, at September 30, 2026, no allowance has been recorded.
At September 30, 2026, the Company had $6.6 million of unrealized losses on private label residential mortgage-backed securities and collateralized mortgage obligations having a fair value of $71.5 million. All positions held have weighted-average credit support of 22 %. Based on the evaluation of available information relevant to collectibility, the Company believes that the unrealized loss positions on these debt securities are a function of changes in investment spreads and interest rate movements and not changes in credit quality and expects to recover the entire amortized cost basis of these securities. Therefore, at September 30, 2026, no allowance has been recorded.
At September 30, 2026, the Company had $0.9 million of unrealized losses in floating rate CLOs having a fair value of $241.4 million. CLOs are special purpose vehicles and those in which the Company has invested are nearly all first-lien, broadly syndicated corporate loans across a diversified band of industries while providing support to senior tranche investors. As of September 30, 2026, all positions held by the Company are in AAA and AA tranches, with weighted-average credit support of 37 % and 23 %, respectively. The Company evaluates the securities for potential credit losses by modeling expected loan-level defaults, recoveries, and prepayments for each CLO security. Based on the evaluation of available information relevant to collectibility, the Company believes that the unrealized loss positions on these debt securities are a function of changes in investment spreads and not changes in credit quality and expects to recover the entire amortized cost basis of these securities. Therefore, at September 30, 2026, no allowance has been recorded.
At September 30, 2026, the Company had $23.6 million of unrealized losses on municipal securities having a fair value of $310.1 million and $7.0 million of unrealized losses on other debt securities having a fair value of $153.8 million. These securities are highly rated issuances, all of which are continuing to make timely contractual payments. Based on the evaluation of available information relevant to collectibility, the Company believes that the unrealized loss positions on these debt securities are a function of changes in investment spreads and interest rate movements and not changes in credit quality and expects to recover the entire amortized cost basis of these securities. As a result, as of September 30, 2026, no allowance has been recorded.
All HTM debt securities are issued by government-sponsored entities, which are either explicitly or implicitly guaranteed by the U.S. government and have a long history of no credit losses. The implied government guarantee of principal and interest payments, and the high credit rating of the HTM portfolio provide sufficient basis for the current expectation that there is no risk of loss if a default were to occur. As a result, as of September 30, 2026, no allowance has been recorded. The Company has the intent and ability to hold these securities until maturity.
Included in Other assets at September 30, 2026 and December 31, 2025 is $143.9 million and $135.6 million, respectively, of FHLB and Federal Reserve Bank stock stated at par value. The Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of these cost method investment securities. Accrued interest receivable on AFS and HTM debt securities of $22.5 million and $0.9 million, respectively, at September 30, 2026, and $24.5 million and $1.0 million, respectively, at December 31, 2025, is included in Other assets. Also included in Other assets are investments in CRA-qualified mutual funds carried at fair value of $13.3 million and $13.9 million at September 30, 2026 and December 31, 2025, respectively.
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Note 4 – Loans
The following tables present net loan balances by segment for portfolio loans, PCD loans and loans purchased which are not considered purchased credit deteriorated (“Non-PCD”) as of:
| September 30, 2026 | ||||||||||||||||||||||||||
| (In thousands) | Portfolio Loans | Acquired Non-PCD Loans | PCD Loans | Total | ||||||||||||||||||||||
| Construction and land development | $ | $ | $ | $ | ||||||||||||||||||||||
| CRE - owner occupied | ||||||||||||||||||||||||||
| CRE - non-owner occupied | ||||||||||||||||||||||||||
| Residential real estate | ||||||||||||||||||||||||||
| Commercial and financial | ||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||
| Totals | $ | $ | $ | $ | ||||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||||||||
| (In thousands) | Portfolio Loans | Acquired Non-PCD Loans | PCD Loans | Total | ||||||||||||||||||||||
| Construction and land development | $ | $ | $ | $ | ||||||||||||||||||||||
| CRE - owner occupied | ||||||||||||||||||||||||||
CRE - non-owner occupied | ||||||||||||||||||||||||||
| Residential real estate | ||||||||||||||||||||||||||
| Commercial and financial | ||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||
| Totals | $ | $ | $ | $ | ||||||||||||||||||||||
The amortized cost basis of loans included net deferred costs of $48.3 million at September 30, 2026 and $46.3 million at December 31, 2025. At September 30, 2026, the remaining fair value adjustments on acquired loans were $120.8 million, or 3.9 % of the outstanding acquired loan balances, compared to $150.0 million, or 4.0 % of the acquired loan balances at December 31, 2025. The net discount is accreted into interest income over the remaining lives of the related loans on a level yield basis.
Accrued interest receivable is included within Other assets and was $50.1 million and $45.7 million at September 30, 2026 and December 31, 2025, respectively.
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The following tables present the status of net loan balances as of September 30, 2026 and December 31, 2025.
| September 30, 2026 | ||||||||||||||||||||||||||||||||||||||
| (In thousands) | Current | Accruing 30-59 Days Past Due | Accruing 60-89 Days Past Due | Accruing Greater Than 90 Days | Nonaccrual | Total | ||||||||||||||||||||||||||||||||
| Portfolio Loans | ||||||||||||||||||||||||||||||||||||||
| Construction and land development | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
CRE - owner occupied | ||||||||||||||||||||||||||||||||||||||
CRE - non-owner occupied | ||||||||||||||||||||||||||||||||||||||
| Residential real estate | ||||||||||||||||||||||||||||||||||||||
| Commercial and financial | ||||||||||||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||||||||
| Total Portfolio Loans | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Acquired Non-PCD Loans | ||||||||||||||||||||||||||||||||||||||
| Construction and land development | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
CRE - owner occupied | ||||||||||||||||||||||||||||||||||||||
CRE - non-owner occupied | ||||||||||||||||||||||||||||||||||||||
| Residential real estate | ||||||||||||||||||||||||||||||||||||||
| Commercial and financial | ||||||||||||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||||||||
| Total Acquired Non-PCD Loans | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| PCD Loans | ||||||||||||||||||||||||||||||||||||||
| Construction and land development | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
CRE - owner occupied | ||||||||||||||||||||||||||||||||||||||
CRE - non-owner occupied | ||||||||||||||||||||||||||||||||||||||
| Residential real estate | ||||||||||||||||||||||||||||||||||||||
| Commercial and financial | ||||||||||||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||||||||
| Total PCD Loans | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Total Loans | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
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Table of Contents
| December 31, 2025 | ||||||||||||||||||||||||||||||||||||||
| (In thousands) | Current | Accruing 30-59 Days Past Due | Accruing 60-89 Days Past Due | Accruing Greater Than 90 Days | Nonaccrual | Total | ||||||||||||||||||||||||||||||||
| Portfolio Loans | ||||||||||||||||||||||||||||||||||||||
| Construction and land development | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
CRE - owner occupied | ||||||||||||||||||||||||||||||||||||||
CRE - non-owner occupied | ||||||||||||||||||||||||||||||||||||||
| Residential real estate | ||||||||||||||||||||||||||||||||||||||
| Commercial and financial | ||||||||||||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||||||||
| Total Portfolio Loans | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Acquired Non-PCD Loans | ||||||||||||||||||||||||||||||||||||||
| Construction and land development | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
CRE - owner occupied | ||||||||||||||||||||||||||||||||||||||
CRE - non-owner occupied | ||||||||||||||||||||||||||||||||||||||
| Residential real estate | ||||||||||||||||||||||||||||||||||||||
| Commercial and financial | ||||||||||||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||||||||
| Total Acquired Non-PCD Loans | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| PCD Loans | ||||||||||||||||||||||||||||||||||||||
| Construction and land development | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
CRE - owner occupied | ||||||||||||||||||||||||||||||||||||||
CRE - non-owner occupied | ||||||||||||||||||||||||||||||||||||||
| Residential real estate | ||||||||||||||||||||||||||||||||||||||
| Commercial and financial | ||||||||||||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||||||||
| Total PCD Loans | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Total Loans | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
21
Table of Contents
The following tables present net balances of loans on nonaccrual status as of:
| September 30, 2026 | ||||||||||||||||||||
| (In thousands) | Nonaccrual Loans With No Related Allowance | Nonaccrual Loans With an Allowance | Total Nonaccrual Loans | |||||||||||||||||
| Construction and land development | $ | $ | $ | |||||||||||||||||
CRE - owner occupied | ||||||||||||||||||||
CRE - non-owner occupied | ||||||||||||||||||||
| Residential real estate | ||||||||||||||||||||
| Commercial and financial | ||||||||||||||||||||
| Consumer | ||||||||||||||||||||
| Totals | $ | $ | $ | |||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||
| (In thousands) | Nonaccrual Loans With No Related Allowance | Nonaccrual Loans With an Allowance | Total Nonaccrual Loans | |||||||||||||||||
| Construction and land development | $ | $ | $ | |||||||||||||||||
CRE - owner occupied | ||||||||||||||||||||
CRE - non-owner occupied | ||||||||||||||||||||
| Residential real estate | ||||||||||||||||||||
| Commercial and financial | ||||||||||||||||||||
| Consumer | ||||||||||||||||||||
| Totals | $ | $ | $ | |||||||||||||||||
The Company utilizes an internal asset classification system as a means of identifying problem and potential problem loans. The classifications of Pass, Special Mention, Substandard, and Doubtful are used to categorize loans under the internal classification system. Refer to “Note 4 – Loans” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for additional details on classifications.
22
Table of Contents
The following tables present the risk rating of loans and year-to-date1 gross charge offs by year of origination as of:
1Represents gross charge-offs for the nine months ended September 30, 2026
| September 30, 2026 | ||||||||||||||||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2024 | 2023 | 2022 | Prior | Revolving | Revolving Converted to Term | Total | |||||||||||||||||||||||
| Construction and land development | ||||||||||||||||||||||||||||||||
| Risk Ratings: | ||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Gross Charge Offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
CRE - owner occupied | ||||||||||||||||||||||||||||||||
| Risk Ratings: | ||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Gross Charge Offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
CRE - non-owner occupied | ||||||||||||||||||||||||||||||||
| Risk Ratings: | ||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Gross Charge Offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Residential real estate | ||||||||||||||||||||||||||||||||
| Risk Ratings: | ||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Gross Charge Offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Commercial and financial | ||||||||||||||||||||||||||||||||
| Risk Ratings: | ||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Gross Charge Offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||
| Risk Ratings: | ||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Gross Charge Offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Consolidated | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Gross Charge Offs1 | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
23
Table of Contents
| December 31, 2025 | ||||||||||||||||||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Revolving | Revolving Converted to Term | Total | |||||||||||||||||||||||
| Construction and land development | ||||||||||||||||||||||||||||||||
| Risk Ratings: | ||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Gross Charge Offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
CRE - owner occupied | ||||||||||||||||||||||||||||||||
| Risk Ratings: | ||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Gross Charge Offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
CRE - non-owner occupied | ||||||||||||||||||||||||||||||||
| Risk Ratings: | ||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Gross Charge Offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Residential real estate | ||||||||||||||||||||||||||||||||
| Risk Ratings: | ||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Gross Charge Offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Commercial and financial | ||||||||||||||||||||||||||||||||
| Risk Ratings: | ||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Gross Charge Offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||
| Risk Ratings: | ||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Gross Charge Offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
| Consolidated | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Gross Charge Offs1 | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
24
Table of Contents
TBMs
The following tables present the amortized cost of TBM loans that were modified during the three and nine months ended September 30, 2026 and September 30, 2025.
Three Months Ended September 30, 2026 | |||||||||||||||||||||||
| (In thousands) | Rate Reduction or Rate Reduction with Term Extension | Term Extension and/or Payment Delay | Total | % of Total Class of Loans | |||||||||||||||||||
| Residential real estate | $ | $ | $ | % | |||||||||||||||||||
| Totals | $ | $ | $ | % | |||||||||||||||||||
Three Months Ended September 30, 2025 | |||||||||||||||||||||||
| (In thousands) | Rate Reduction or Rate Reduction with Term Extension | Term Extension and/or Payment Delay | Total | % of Total Class of Loans | |||||||||||||||||||
CRE - owner occupied | $ | $ | $ | % | |||||||||||||||||||
| Residential real estate | |||||||||||||||||||||||
| Commercial and financial | |||||||||||||||||||||||
| Consumer | |||||||||||||||||||||||
| Totals | $ | $ | $ | % | |||||||||||||||||||
| Nine Months Ended September 30, 2026 | |||||||||||||||||||||||
| (In thousands) | Rate Reduction or Rate Reduction with Term Extension | Term Extension and/or Payment Delay | Total | % of Total Class of Loans | |||||||||||||||||||
CRE - owner occupied | $ | $ | $ | % | |||||||||||||||||||
| Residential real estate | |||||||||||||||||||||||
| Commercial and financial | |||||||||||||||||||||||
| Consumer | |||||||||||||||||||||||
| Totals | $ | $ | $ | % | |||||||||||||||||||
| Nine Months Ended September 30, 2025 | |||||||||||||||||||||||
| (In thousands) | Rate Reduction or Rate Reduction with Term Extension | Term Extension and/or Payment Delay | Total | % of Total Class of Loans | |||||||||||||||||||
| CRE - owner occupied | $ | $ | $ | % | |||||||||||||||||||
| Residential real estate | |||||||||||||||||||||||
| Commercial and financial | |||||||||||||||||||||||
| Consumer | |||||||||||||||||||||||
| Totals | $ | $ | $ | % | |||||||||||||||||||
25
Table of Contents
There were no unfunded lending related commitments associated with TBMs as of September 30, 2026 and September 30, 2025.
The following tables present the payment status of TBM loans that were modified in the twelve months prior to September 30, 2026 and in the twelve months prior to September 30, 2025.
| September 30, 2026 | ||||||||||||||||||||||||||||||||||||||
| (In thousands) | Current | Accruing 30-59 Days Past Due | Accruing 60-89 Days Past Due | Accruing Greater Than 90 Days | Nonaccrual | Total | ||||||||||||||||||||||||||||||||
CRE - owner occupied | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Residential real estate | ||||||||||||||||||||||||||||||||||||||
| Commercial and financial | ||||||||||||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||||||||
| Totals | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| September 30, 2025 | ||||||||||||||||||||||||||||||||||||||
| (In thousands) | Current | Accruing 30-59 Days Past Due | Accruing 60-89 Days Past Due | Accruing Greater Than 90 Days | Nonaccrual | Total | ||||||||||||||||||||||||||||||||
CRE - owner occupied | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Residential real estate | ||||||||||||||||||||||||||||||||||||||
| Commercial and financial | ||||||||||||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||||||||
| Totals | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
TBM loans that experienced a payment default and that were modified in the 12 months preceding the default were immaterial for each period presented.
26
Table of Contents
Note 5 – Allowance for Credit Losses
Activity in the ACL is summarized as follows:
Three Months Ended September 30, 2026 | ||||||||||||||||||||||||||||||||||||||
| (In thousands) | Beginning Balance | Allowance on PCD Loans Acquired | Provision for Credit Losses | Charge- Offs | Recoveries | Ending Balance | ||||||||||||||||||||||||||||||||
| Construction and land development | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
CRE - owner occupied | ( | |||||||||||||||||||||||||||||||||||||
CRE - non-owner occupied | ||||||||||||||||||||||||||||||||||||||
| Residential real estate | ||||||||||||||||||||||||||||||||||||||
| Commercial and financial | ( | |||||||||||||||||||||||||||||||||||||
| Consumer | ( | |||||||||||||||||||||||||||||||||||||
| Totals | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
Three Months Ended September 30, 2025 | ||||||||||||||||||||||||||||||||||||||
| (In thousands) | Beginning Balance | Allowance on PCD Loans Acquired | Provision for Credit Losses | Charge- Offs | Recoveries | Ending Balance | ||||||||||||||||||||||||||||||||
| Construction and land development | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
CRE - owner occupied | ( | |||||||||||||||||||||||||||||||||||||
CRE - non-owner occupied | ||||||||||||||||||||||||||||||||||||||
| Residential real estate | ( | |||||||||||||||||||||||||||||||||||||
| Commercial and financial | ( | |||||||||||||||||||||||||||||||||||||
| Consumer | ( | |||||||||||||||||||||||||||||||||||||
| Totals | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
| Nine Months Ended September 30, 2026 | ||||||||||||||||||||||||||||||||||||||
| (In thousands) | Beginning Balance | Allowance on PCD Loans Acquired | Provision for Credit Losses | Charge- Offs | Recoveries | Ending Balance | ||||||||||||||||||||||||||||||||
| Construction and land development | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||
CRE - owner occupied | ( | |||||||||||||||||||||||||||||||||||||
CRE - non-owner occupied | ( | |||||||||||||||||||||||||||||||||||||
| Residential real estate | ( | ( | ||||||||||||||||||||||||||||||||||||
| Commercial and financial | ( | |||||||||||||||||||||||||||||||||||||
| Consumer | ( | |||||||||||||||||||||||||||||||||||||
| Totals | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
27
Table of Contents
| Nine Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||
| (In thousands) | Beginning Balance | Allowance on PCD Loans Acquired | Provision for Credit Losses | Charge- Offs | Recoveries | Ending Balance | |||||||||||||||||||||||||||||
| Construction and land development | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
CRE - owner occupied | ( | ||||||||||||||||||||||||||||||||||
CRE - non-owner occupied | ( | ||||||||||||||||||||||||||||||||||
| Residential real estate | ( | ||||||||||||||||||||||||||||||||||
| Commercial and financial | ( | ||||||||||||||||||||||||||||||||||
| Consumer | ( | ||||||||||||||||||||||||||||||||||
| Totals | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Management establishes the allowance using relevant available information from both internal and external sources, relating to past events, current economic conditions, and reasonable and supportable forecasts. Forecast data is sourced from Moody’s, a firm widely recognized for its research, analysis, and economic forecasts. The forecasts of future economic conditions are over the expected remaining life of the loan using economic forecasts that revert to long-term historical averages over time.
As of September 30, 2026 and December 31, 2025, the Company utilized a multiple scenario model comprised of a blend of Moody’s economic scenarios and considered the uncertainty associated with the assumptions in the scenarios, including continued actions taken by the Federal Reserve regarding monetary policy and changes in interest rates and the potential impact of those actions. Outcomes could differ from the scenarios utilized, and the Company incorporated qualitative considerations reflecting the risk of uncertain economic conditions, and for additional dimensions of risk that may not be captured in the quantitative model.
The following section discusses changes in the level of the ACL for the three months ended September 30, 2026.
The allowance increased $9.3 million, or 5.1 %, during the third quarter of 2026 to $191.4 million, representing 1.41 % of loans held for investment as of September 30, 2026.
During the third quarter of 2026, the Company recorded an $8.4 million measurement period adjustment related to an acquired loan that was determined to meet the definition of PCD as of the acquisition date. The measurement period adjustment increased the ACL on acquired PCD loans by $8.4 million based on facts and circumstances that existed at the acquisition date.
In the Construction and land development segment, the increase in allowance is driven by the increase in loan balances. In this segment, the primary source of repayment is typically from proceeds of the sale or permanent financing of the underlying property; therefore, industry and collateral type and estimated collateral values are among the relevant factors in assessing expected losses.
In the CRE - owner-occupied segment, the allowance increased due to the increase in loan balances. Risk characteristics include, but are not limited to, collateral type, note structure and loan seasoning.
In the CRE - non-owner-occupied segment, the allowance increased due to the $8.4 million measurement period adjustment on an acquired loan, and due to the increase in loan balances in this segment. Repayment is often dependent upon rental income from the successful operation of the underlying property or from the sale of the property. Loan performance may be adversely affected by general economic conditions or conditions specific to the real estate market, including property types. Collateral type, note structure, and loan seasoning are among the risk characteristics analyzed for this segment.
The Residential real estate segment includes residential mortgage, home equity loans, and HELOCs. The increase in the allowance is due to the increase in loan balances. Risk characteristics considered for this segment include, but are not limited to, borrower FICO score, lien position, LTV ratios, and loan seasoning.
In the Commercial and financial segment, borrowers are primarily small to medium sized professional firms and other businesses, and loans are generally supported by projected cash flows of the business, collateralized by business assets, and/or guaranteed by the business owners. The allowance decreased in the third quarter due to a decrease in modeled expected losses and due to charge-offs. Industry, collateral type, estimated collateral values, and loan seasoning are among the relevant factors in assessing expected losses.
28
Table of Contents
Note 6 – Derivatives
Interest Rate Contracts
The Company offers interest rate swaps when requested by customers to allow them to hedge the risk of rising interest rates on their variable rate loans. Upon entering into these swaps, the Company enters into offsetting positions with counterparties in order to minimize the interest rate risk. These back-to-back swaps are freestanding financial derivatives with the fair values reported in Other assets and Other liabilities. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under the arrangements for financial statement presentation purposes. Gains and losses on these back-to-back swaps, which offset, are recorded through Noninterest income.
Cash Flow Hedges
The Company periodically enters into contracts to mitigate exposure to the variability of future cash flows due to changes in interest rates on certain assets and liabilities. During the fourth quarter of 2025, the Company entered into three interest rate caps, each with a notional amount of $100.0
During the third quarter of 2026, the Company entered into a $200.0 million receive-fixed interest rate swap with an embedded interest rate cap and designated the instrument as a cash flow hedge of forecasted interest receipts on variable-rate assets indexed to one-month SOFR. The hedge, which matures in August 2029, is intended to reduce the impact of declining interest rates on future earnings.
For the three and nine months ended September 30, 2026, the Company recognized gains of $5.3 million and $6.7 million, respectively, in Other comprehensive income related to its cash flow hedges. During the same periods, the Company reclassified $0.1 million and $0.4 million, respectively, from AOCI into interest income as the hedged forecasted transactions affected earnings. The Company expects to reclassify approximately $1.0
Fair Value Hedges
The Company periodically enters into interest rate swap contracts to hedge the risk of changes in fair value of the AFS securities portfolio due to changes in SOFR. The Company considers these derivatives to be highly effective at offsetting changes in interest rates and assesses the effectiveness on a quarterly basis. The effect of changes in interest rates on the fair value of these derivative contracts is recognized in Other comprehensive income. These derivative instruments are primarily for risk management purposes. There were no securities fair value hedges during the three and nine months ended September 30, 2026. For the nine months ended September 30, 2025, the Company recognized through Other comprehensive income, net losses of $0.4 million, and reclassified net losses of $0.5 million out of AOCI into interest income.
The Company has entered into interest rate swap contracts to hedge the risk of changes in the fair value of a pool of residential mortgages due to changes in SOFR. These fair value hedges utilize the portfolio layer method. The Company considers these derivatives to be highly effective at offsetting changes in interest rates and assesses the effectiveness on a quarterly basis. The effect of changes in interest rates on the fair value of these derivative contracts is recognized in interest income. These derivative instruments are primarily for risk management purposes. For each of the three and nine months ended September 30, 2026, the Company recognized gains through interest income of $0.1 0.5 million and $0.4 million, respectively.
Economic Hedges
The Company enters into IRLCs to originate mortgage loans for which the interest rate on the loan is determined prior to funding, forward loan sale commitments for the future delivery of these mortgage loans for sale on the secondary market, and forward TBA mortgage-backed securities, all of which are classified as freestanding derivatives. For the three and nine months ended September 30, 2026, the Company recognized losses of $0.2 million and gains of $0.3 million, respectively, in Mortgage banking income in the Consolidated Statements of Income related to these non-hedging derivative financial instruments.
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| (In thousands) | Notional Amount | Fair Value | Balance Sheet Category | |||||||||||||||||
September 30, 2026 | ||||||||||||||||||||
Interest rate contracts1 | $ | $ | Other assets and Other liabilities | |||||||||||||||||
| Residential mortgage fair value hedges | Other assets | |||||||||||||||||||
| Interest rate cash flow hedges | Other assets | |||||||||||||||||||
| IRLCs | Other liabilities | |||||||||||||||||||
| Forward TBA mortgage-backed securities | Other assets | |||||||||||||||||||
| Forward loan sale commitments | Other liabilities | |||||||||||||||||||
December 31, 2025 | ||||||||||||||||||||
Interest rate contracts1 | $ | $ | Other assets and Other liabilities | |||||||||||||||||
| Residential mortgage fair value hedges | Other liabilities | |||||||||||||||||||
| Interest rate caps cash flow hedges | Other assets | |||||||||||||||||||
| IRLCs | Other assets | |||||||||||||||||||
| Forward TBA mortgage-backed securities | Other liabilities | |||||||||||||||||||
| Forward loan sale commitments | Other assets | |||||||||||||||||||
1Interest rate contracts include risk participation agreements with notional amounts of $ | ||||||||||||||||||||
The following table presents amounts recorded on the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges.
| Carrying amount of the hedged items | Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged items | |||||||||||||||||||||||||
| (In thousands) | September 30, 2026 | December 31, 2025 | September 30, 2026 | December 31, 2025 | ||||||||||||||||||||||
Loans, net1 | $ | $ | $ | ( | $ | |||||||||||||||||||||
1These amounts represent the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios anticipated to be outstanding for the designated hedge period. At September 30, 2026, the portfolio layer method was $ | ||||||||||||||||||||||||||
Note 7 – Securities Sold Under Agreements to Repurchase
Securities sold under agreements to repurchase are accounted for as secured borrowings. For securities sold under agreements to repurchase, the Company is required to pledge collateral with value sufficient to fully collateralize borrowings. Company securities pledged were as follows by collateral type and maturity, as of:
| (In thousands) | September 30, 2026 | December 31, 2025 | ||||||||||||
| Fair value of pledged securities - overnight and continuous: | ||||||||||||||
| Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities | $ | $ | ||||||||||||
Note 8 – Regulatory Capital
The Company is well-capitalized and at September 30, 2026, the Company and the Company’s principal banking subsidiary, Seacoast Bank, exceeded the CET1 capital ratio regulatory threshold of 6.5 % for well-capitalized institutions under the Basel III standardized transition approach, as well as risk-based and leverage ratio requirements for well-capitalized banks under the regulatory framework for prompt corrective action.
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Note 9 – Contingent Liabilities
The Company and its subsidiaries, because of the nature of their business, are at all times subject to numerous legal actions, threatened or filed. Management presently believes that none of the legal proceedings to which it is a party are likely to have a materially adverse effect on the Company’s consolidated financial condition, operating results or cash flows.
Note 10 – Fair Value
Under ASC Topic 820, fair value measurements for items measured at fair value on a recurring and nonrecurring basis at September 30, 2026 and December 31, 2025 included:
| (In thousands) | Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||
| At September 30, 2026 | ||||||||||||||||||||||||||
| Financial Assets | ||||||||||||||||||||||||||
Debt securities AFS1 | $ | $ | $ | $ | ||||||||||||||||||||||
Derivative financial instruments2 | ||||||||||||||||||||||||||
Loans held for sale2 | ||||||||||||||||||||||||||
OREO3 | ||||||||||||||||||||||||||
Equity securities4 | ||||||||||||||||||||||||||
MSR5 | ||||||||||||||||||||||||||
| Financial Liabilities | ||||||||||||||||||||||||||
Derivative financial instruments2 | $ | $ | $ | $ | ||||||||||||||||||||||
At December 31, 2025 | ||||||||||||||||||||||||||
| Financial Assets | ||||||||||||||||||||||||||
Debt securities AFS1 | $ | $ | $ | $ | ||||||||||||||||||||||
Derivative financial instruments2 | ||||||||||||||||||||||||||
Loans held for sale2 | ||||||||||||||||||||||||||
OREO3 | ||||||||||||||||||||||||||
Equity securities4 | ||||||||||||||||||||||||||
MSR5 | ||||||||||||||||||||||||||
| Financial Liabilities | ||||||||||||||||||||||||||
Derivative financial instruments2 | $ | $ | $ | $ | ||||||||||||||||||||||
1See “Note 3 – Securities” for further detail of fair value of individual investment categories. | ||||||||||||||||||||||||||
2Recurring fair value basis determined using observable market data for level 2 inputs. Level 3 inputs utilize a market approach that incorporates a pull-through rate assumption. | ||||||||||||||||||||||||||
3Fair value is measured on a nonrecurring basis. | ||||||||||||||||||||||||||
4Investment in shares of mutual funds that invest primarily in CRA-qualified debt securities, reported at fair value in Other assets. Recurring fair value basis is determined using market quotations with fair value adjustments recognized in earnings. | ||||||||||||||||||||||||||
5Recurring fair value basis determined using unobservable market data. Refer to “Note 8 - Goodwill and Acquired Intangible Assets” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for additional details on assumptions utilized. | ||||||||||||||||||||||||||
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Derivative financial instruments: The fair value of these derivatives is based on a discounted cash flow approach. Due to the observable nature of the inputs used in deriving the fair value of these derivative contracts, the valuation of interest rate swaps and forward TBA mortgage-backed securities is classified as Level 2. The fair values of these instruments are based upon the estimated amount the Company would receive or pay to terminate the instruments, taking into account current interest rates and, when appropriate, the current credit worthiness of the counterparties. IRLCs and forward loan sale commitment fair values are estimated based on quoted prices for similar loans in active markets. However, the value is adjusted by a factor which considers the likelihood of a loan in a lock position will ultimately close. This closing ratio is derived from internal data and is adjusted using significant accounting judgment. As such, these derivatives are classified as Level 3 measurements and the Company values these derivatives primarily using a market approach that incorporates flow mandatory market pricing, adjusted for expected pull‑through based on historical experience. For IRLCs, the weighted-average pull-through rate was 96 % and 94 % at September 30, 2026 and December 31, 2025, respectively, while the weighted-average current reference price was 98.32 % and 101.26 %, respectively. For forward loan sale commitments, the weighted-average pull-through rate was 100 98.50 % and 101.12 %, respectively.
Loans and OREO: Fair values of collateral-dependent real estate loans and OREO are based on recent real estate appraisals less estimated costs of sale. Evaluations may use either a single valuation approach or a combination of approaches, such as comparative sales, cost, and/or income approach. Adjustments to comparable sales may be made by an appraiser to reflect local market conditions or other economic factors and may result in changes in the fair value of an asset over time, but none were made by management. The fair values of these loans and properties are considered Level 3 in the fair value hierarchy. There were no
MSRs: The fair value of these servicing rights is based on an income approach. Various unobservable inputs to assumptions including expected cash flows, market discount rates, prepayment rates, servicing costs, and other factors are utilized, therefore the valuation of MSRs is classified as Level 3.
The following table presents changes in the Company's MSRs measured at fair value for the three and nine months ended September 30, 2026. There was no MSR balance during the three and nine months ended September 30, 2025:
| Three Months Ended | Nine Months Ended | |||||||||||||
| (In thousands) | September 30, 2026 | |||||||||||||
| Carrying value at beginning of period | $ | $ | ||||||||||||
| Originated servicing rights capitalized upon sale of loan | ||||||||||||||
| Change in fair value: | ||||||||||||||
| Due to payoffs/paydowns | ( | ( | ||||||||||||
| Due to change in valuation inputs or assumptions | ||||||||||||||
| Carrying value at end of period | $ | $ | ||||||||||||
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The following table presents data and key economic assumptions, as well as the valuation's sensitivity to interest rate fluctuations, related to the Company’s MSRs as of:
| (In thousands) | September 30, 2026 | December 31, 2025 | ||||||||||||
| Unpaid principal balance | $ | $ | ||||||||||||
| Prepayment rate assumptions: | ||||||||||||||
Weighted-average | % | % | ||||||||||||
| Estimated impact on fair value of a 10% increase | $ | ( | $ | ( | ||||||||||
| Estimated impact on fair value of a 20% increase | ( | ( | ||||||||||||
| Option-adjusted spread: | ||||||||||||||
Weighted-average | % | % | ||||||||||||
| Estimated impact on fair value of a 100 basis point increase | $ | ( | $ | ( | ||||||||||
| Estimated impact on fair value of a 200 basis point increase | ( | ( | ||||||||||||
Weighted-average coupon interest rate | % | % | ||||||||||||
Weighted-average servicing fee | ||||||||||||||
Weighted-average remaining maturity (in months) | ||||||||||||||
The sensitivity calculations above are hypothetical changes and should not be considered to be predictive of future performance. Changes in fair value based on variations in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value is calculated without changing any other assumption, while in reality changes in one factor may result in changes in another, which may either magnify or counteract the effect of the change.
For recurring fair value measurements, transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s monthly and/or quarterly valuation process. During the nine months ended September 30, 2026, there were no such transfers.
For additional information on the valuation techniques and significant inputs for Level 2 and Level 3 assets and liabilities that are measured at fair value on a recurring basis, see “Note 16 - Fair Value” of the Annual Report on Form 10-K for the year ended December 31, 2025.
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The carrying amount and fair value of the Company’s other financial instruments that were not disclosed previously in the balance sheet and for which carrying amount is not fair value as of September 30, 2026 and December 31, 2025 is as follows:
| (In thousands) | Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||
| September 30, 2026 | ||||||||||||||||||||||||||
| Financial Assets | ||||||||||||||||||||||||||
HTM debt securities1 | $ | $ | $ | $ | ||||||||||||||||||||||
| Loans, net | ||||||||||||||||||||||||||
| Financial Liabilities | ||||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||||
| FHLB and other borrowings | ||||||||||||||||||||||||||
| Subordinated debt | ||||||||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||||||||
| Financial Assets | ||||||||||||||||||||||||||
HTM debt securities1 | $ | $ | $ | $ | ||||||||||||||||||||||
| Time deposits with other banks | ||||||||||||||||||||||||||
| Loans, net | ||||||||||||||||||||||||||
| Financial Liabilities | ||||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||||
| FHLB and other borrowings | ||||||||||||||||||||||||||
| Subordinated debt | ||||||||||||||||||||||||||
1See “Note 3 – Securities” for further detail of recurring fair value basis of individual investment categories. | ||||||||||||||||||||||||||
The short maturity of the Company’s assets and liabilities results in a significant number of financial instruments whose fair value equals or closely approximates carrying value. Such financial instruments are reported in the following balance sheet captions: cash and due from banks, interest-bearing deposits with other banks, and securities sold under agreements to repurchase.
The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate that value at September 30, 2026 and December 31, 2025:
HTM debt securities: These debt securities are reported at fair value utilizing Level 2 inputs. The estimated fair value of a security is determined based on market quotations when available or, if not available, by using quoted market prices for similar securities, pricing models or discounted cash flow analyses, using observable market data where available.
The Company reviews the prices supplied by independent pricing services, as well as their underlying pricing methodologies, for reasonableness and to ensure such prices are aligned with traditional pricing matrices. From time to time, the Company will validate, on a sample basis, prices supplied by the independent pricing service by comparison to prices obtained from other brokers and third-party sources or derived using internal models.
Loans: Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type, such as commercial or mortgage. Each loan category is further segmented into fixed and adjustable-rate interest terms as well as performing and nonperforming categories. The fair value of Level 3 loans is calculated by discounting scheduled cash flows through the estimated life including prepayment considerations, using estimated market discount rates that reflect the risks inherent in the loan. The fair value approach considers market-driven variables including credit related factors and reflects an “exit price” as defined in ASC Topic 820. The fair value of Level 2 loans is valued using observable market-based inputs, including quoted prices obtained from third-party pricing services based on recent market transactions and dealer quotations for comparable instruments.
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Investments at NAV: The Company has equity investments in SBICs accounted for under the fair value practical expedient of NAV included in Other assets totaling $24.4 million at September 30, 2026 and $26.4 million at December 31, 2025, which are not included in the fair value hierarchy. These investments are made primarily through various SBIC funds as a strategy to provide expansion and growth opportunities to small businesses and are subject to various risks, including market, liquidity, and credit risk. SBICs are generally structured to operate for approximately 10 years and the Company’s investments are not redeemable. Distributions are received through the liquidation of the underlying assets, which is expected to occur over the next 5 -10 years. Unfunded commitments related to these investments were $7.8 million at September 30, 2026 and $8.7 million at December 31, 2025.
Deposit liabilities: The fair value of demand deposits, savings accounts, and money market deposits is the amount payable at the reporting date. The fair value of fixed maturity certificates of deposit is estimated using the rates currently offered for funding of similar remaining maturities.
Note 11 – Business Combinations
Acquisition of Villages Bancorporation, Inc.
On October 1, 2025, the Company completed its acquisition of VBI, adding 19 branches in North Central Florida including The Villages® community. The Company acquired 100 % of the outstanding common stock of VBI. Pursuant to the merger agreement, each share of VBI common stock was converted into the right to receive, at the shareholders' election, (i) $1,000.00 in cash, (ii) 38.5000 shares of Seacoast common stock or (iii) a 25 % - 75 % combination of cash and common stock, with the final election subject to a proration mechanism such that 25 % of VBI shares received the cash consideration and 75 % of VBI shares received the stock consideration. In the event any shareholder or shareholder group would have received more than 9.75 % of cumulative outstanding Seacoast common stock, non-voting convertible preferred stock was issued in lieu of the excess amount of common shares. The final consideration totaled $829.1 million.
| (In thousands, except per share data) | October 1, 2025 | |||||||
| Number of VBI shares receiving stock | ||||||||
| Per share exchange ratio for VBI shares receiving stock | ||||||||
| Number of shares of SBCF common stock issued | ||||||||
Number of shares of SBCF preferred stock issued1 | ||||||||
| Multiplied by SBCF price per share at October 1, 2025 | $ | |||||||
| Total Value of SBCF common and preferred stock issued | $ | |||||||
| Number of VBI shares receiving cash | ||||||||
| Per share exchange ratio for VBI shares receiving cash | $ | |||||||
| Cash consideration paid to VBI shareholders, including cash paid for fractional shares | ||||||||
| Total purchase price | $ | |||||||
1Preferred stock is 1/1000th share for every share of common stock. | ||||||||
The acquisition of VBI was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. The Company recognized goodwill of $287.5 million for this acquisition that is nondeductible for tax purposes. Determining fair values of assets and liabilities, especially the loan portfolio, CDI, and deferred taxes, is a complicated process involving significant judgment regarding methods and assumptions used to calculate estimated fair values.
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The table below presents the allocation of the purchase consideration.
| (In thousands) | Initially Measured October 1, 2025 | Measurement Period Adjustments | As Adjusted October 1, 2025 | |||||||||||||||||
| Assets: | ||||||||||||||||||||
| Cash and cash equivalents | $ | $ | — | $ | ||||||||||||||||
| Investment securities | ( | |||||||||||||||||||
| Loans | ( | |||||||||||||||||||
| Bank premises and equipment | — | |||||||||||||||||||
| CDI | — | |||||||||||||||||||
| Goodwill | ||||||||||||||||||||
| Other assets | — | |||||||||||||||||||
| Total Assets | $ | $ | ( | $ | ||||||||||||||||
| Liabilities: | ||||||||||||||||||||
| Deposits | $ | $ | — | $ | ||||||||||||||||
| Securities sold under agreements to repurchase | — | |||||||||||||||||||
| Other liabilities | ( | |||||||||||||||||||
| Total Liabilities | $ | $ | ( | $ | ||||||||||||||||
The table below presents information with respect to the fair value and unpaid principal balance of acquired loans at the acquisition date.
| October 1, 2025 | ||||||||||||||
| (In thousands) | Book Balance | Fair Value | ||||||||||||
| Loans: | ||||||||||||||
| Construction and land development | $ | $ | ||||||||||||
CRE - owner occupied | ||||||||||||||
CRE - non-owner occupied | ||||||||||||||
| Residential real estate | ||||||||||||||
| Commercial and financial | ||||||||||||||
| Consumer | ||||||||||||||
| Total acquired loans | $ | $ | ||||||||||||
The table below presents the carrying amount of loans for which, at the date of acquisition, there was evidence of more than insignificant deterioration of credit quality since origination:
| (In thousands) | Initially Measured October 1, 2025 | Measurement Period Adjustments | As Adjusted October 1, 2025 | |||||||||||||||||
| Book balance of loans at acquisition | $ | $ | $ | |||||||||||||||||
| ACL at acquisition | ( | ( | ( | |||||||||||||||||
| Non-credit related discount | ( | ( | ( | |||||||||||||||||
| Total PCD loans acquired | $ | $ | $ | |||||||||||||||||
The acquisition of VBI resulted in the addition of $34.1 million in ACL, including $11.4 million for PCD loans, and $22.7 million for non-PCD loans recorded through the provision for credit losses.
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The Company believes the deposits assumed in the acquisition have an intangible value. In determining the valuation amount, deposits were analyzed based on factors such as type of deposit, deposit retention, interest rates, and age of deposit relationships. The CDI asset acquired from VBI is being amortized over 10 years using an accelerated method of amortization.
The Company assumed a financing obligation recognized within Long-term debt, net, refer to “Note 11 - Lease Commitments” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for additional details.
Pro-forma Information
The table below presents pro-forma data as if the acquisition of VBI occurred at the beginning of 2025. The pro-forma information is presented for illustrative purposes only and is not necessarily indicative of the results of operations that would have occurred if the transactions had been effected on the assumed dates.
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| (In thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Net interest income | $ | $ | $ | $ | ||||||||||||||||||||||
| Net income available to common shareholders | ||||||||||||||||||||||||||
| EPS - diluted | ||||||||||||||||||||||||||
| EPS - basic | $ | $ | $ | $ | ||||||||||||||||||||||
Acquisition of Heartland Bancshares, Inc.
On July 11, 2025, the Company completed its acquisition of Heartland, adding four branches in Central Florida. The Company acquired 100 % of the outstanding common and preferred stock of Heartland. Under the terms of the definitive agreement, Heartland shareholders received a combination of cash and common stock, with the final consideration totaling $111.2 million.
| (In thousands, except per share data) | July 11, 2025 | |||||||
| Number of Heartland shares receiving stock | ||||||||
| Per share exchange ratio for Heartland shares receiving stock | ||||||||
| Number of shares of SBCF common stock issued | ||||||||
| Multiplied by SBCF price per share at July 11, 2025 | $ | |||||||
| Value of SBCF common stock issued | $ | |||||||
| Number of Heartland shares receiving cash | ||||||||
| Per share cash consideration for Heartland shares receiving cash | $ | |||||||
| Cash consideration paid to Heartland shareholders, including cash paid for fractional shares | $ | |||||||
| Cash paid to Heartland option holders | ||||||||
| Total purchase price | $ | |||||||
The acquisition of Heartland was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. The Company recognized goodwill of $22.2 million for this acquisition that is nondeductible for tax purposes. Determining fair values of assets and liabilities, especially the loan portfolio, CDI, and deferred taxes, is a complicated process involving significant judgment regarding methods and assumptions used to calculate estimated fair values.
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The table below presents the allocation of the purchase consideration.
| (In thousands) | July 11, 2025 | |||||||||||||||||||
| Assets: | ||||||||||||||||||||
| Cash and cash equivalents | $ | |||||||||||||||||||
| Investment securities | ||||||||||||||||||||
| Loans | ||||||||||||||||||||
| Bank premises and equipment | ||||||||||||||||||||
| CDI | ||||||||||||||||||||
| Goodwill | ||||||||||||||||||||
| Other assets | ||||||||||||||||||||
| Total Assets | $ | |||||||||||||||||||
| Liabilities: | ||||||||||||||||||||
| Deposits | $ | |||||||||||||||||||
| Other liabilities | ||||||||||||||||||||
| Total Liabilities | $ | |||||||||||||||||||
The table below presents information with respect to the fair value and unpaid principal balance of acquired loans at the acquisition date.
| July 11, 2025 | ||||||||||||||
| (In thousands) | Book Balance | Fair Value | ||||||||||||
| Loans: | ||||||||||||||
Construction and land development | $ | $ | ||||||||||||
CRE - owner occupied | ||||||||||||||
CRE - non-owner occupied | ||||||||||||||
| Residential real estate | ||||||||||||||
| Commercial and financial | ||||||||||||||
| Consumer | ||||||||||||||
| Total acquired loans | $ | $ | ||||||||||||
The book value and fair value amount of loans for which, at the date of acquisition, there was evidence of more than insignificant deterioration of credit quality since origination was $7.2 million and $6.4 million, respectively.
The acquisition of Heartland resulted in the addition of $2.0 million in ACL, including $0.1 million for PCD loans, and $1.9 million for non-PCD loans recorded through the provision for credit losses at the date of acquisition.
The Company believes the deposits assumed in the acquisition have an intangible value. In determining the valuation amount, deposits were analyzed based on factors such as type of deposit, deposit retention, interest rates, and age of deposit relationships. The CDI asset acquired from Heartland is being amortized over 10 years using an accelerated method of amortization.
Acquisition of W.L. Hunter Insurance Agency, LLC
On July 1, 2026, the Company, through its wholly-owned Nature Coast Insurance subsidiary, completed its acquisition of the W.L. Hunter Insurance Agency, LLC for total consideration of $5.8 million. The acquisition was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. The Company recognized goodwill and a customer relationship intangible asset of $2.9 not deductible for tax purposes. The customer relationship intangible asset is being amortized on a straight-line basis over 10 years.
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Note 12 – Business Segment
The Company's one reportable segment provides integrated financial services including commercial and consumer banking, wealth management, and mortgage and insurance services to customers. Segment revenues are driven primarily by interest and fees on loans, interest on cash and cash equivalents and on investment securities, and fees on depository products and services.
The Company manages business activities, allocates resources and evaluates financial performance on an organization-wide basis. The CODM is the CEO. The financial results of the segment are presented using the same policies described in “Note 1 - Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
The CODM evaluates the performance of the segment and allocates resources based on net income that is also reported on the Consolidated Statements of Income as consolidated net income and segment assets that are reported on the Consolidated Balance Sheets as total consolidated assets. Net income is used to monitor budget versus actual results. The significant segment expenses that are regularly provided to the CODM are interest expense, provision for credit losses, salaries and employee benefits, outsourced data processing costs, and occupancy, which are all reflected in the Consolidated Statements of Income. Certain noncash expenses, such as depreciation and amortization expense, are disclosed in the Consolidated Statement of Cash Flows.
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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The purpose of this discussion and analysis is to aid in understanding significant changes in the financial condition of Seacoast Banking Corporation of Florida and its subsidiaries (“Seacoast” or the “Company”) and their results of operations. Nearly all of the Company’s operations are contained in its banking subsidiary, Seacoast National Bank (“Seacoast Bank” or the “Bank”). Such discussion and analysis should be read in conjunction with the Company’s Consolidated Financial Statements and the related notes included in this report.
For the consolidated statements of income, the emphasis of this discussion will be on the three months ended September 30, 2026, compared to the three months ended June 30, 2026, and September 30, 2025, as well as the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. For the consolidated balance sheets, the emphasis of this discussion will be the balances as of September 30, 2026, compared to December 31, 2025.
This discussion and analysis contain statements that may be considered “forward-looking statements” as defined in, and subject to the protections of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. See the following section for additional information regarding forward-looking statements.
For purposes of the following discussion, the words “Seacoast” or the “Company” refer to the combined entities of Seacoast Banking Corporation of Florida and its direct and indirect wholly owned subsidiaries.
Special Cautionary Notice
Regarding Forward-Looking Statements
Certain statements made or incorporated by reference herein which are not statements of historical fact, including those under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere herein, are “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 (the “Exchange Act”). Forward-looking statements include statements with respect to the Company’s beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, and intentions regarding future events, performance, financial condition, results of operations and business strategies, 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 the Company or its wholly-owned banking subsidiary, Seacoast Bank, to be materially different from those set forth in the forward-looking statements. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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 continued inflationary pressures, changes in interest rates, tariffs or trade wars (including reduced consumer spending, supply chain issues, and adverse impacts to credit quality), a sustained increase in commodity prices, slowdowns in economic growth or recession, 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, or as encountered by other financial institutions that adversely affect Seacoast, 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 FRB, as well as risks related to legislative, tax and regulatory changes, 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 impact of interest rates on macroeconomic conditions, customer and client behavior, and on our net interest income), sensitivities, and the shape of the yield curve;
•The risks relating to bank acquisitions, which include, without limitation: the diversion of management's time on issues related to the integration; unexpected transaction costs, including the costs of integrating operations; the risks that the
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businesses will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; the potential failure to fully or timely realize expected revenues and revenue synergies, including as the result of revenues following acquisitions being lower than expected; the risk related to the accounting and regulatory capital treatment of the Series A Non-Voting Convertible Preferred Stock and the impact on the Company's financial statements; the risk of deposit and customer attrition; regulatory enforcement and litigation risk; any changes in deposit mix; unexpected operating and other costs, which may differ or change from expectations; the risks of customer and employee loss and business disruptions, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures and solicitations of customers by competitors; as well as the difficulties and risks inherent with entering new markets;
•Risks related to our implementation of new lines of business, new products and services, new technologies, and expansion of our existing business opportunities, including entering and/or expanding markets through de novo branching;
•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 borrower credit risks and payment behaviors, and 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 CRE properties, especially as they relate to the value of collateral supporting the Company’s loans;
•The Company’s concentration in CRE 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 (including with respect to our financial statements), 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;
•Changes in technology or products that may be more difficult, costly, or less effective than anticipated;
•The timely development and acceptance of new products and services as well as risks (including reputational and litigation) attendant thereto, and perceived overall value of these products and services by users;
•Risks and costs associated with the development, implementation and use of artificial intelligence and other emerging technologies, including risks relating to data privacy, cybersecurity, model accuracy, regulatory compliance, intellectual property rights and operational effectiveness;
•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, including risks associated with reliance on third-party service providers, cloud-based platforms, fintech partners and other technology providers, and disruptions, outages, cybersecurity incidents or failures affecting such third parties;
•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, regime change, civil unrest, 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 or actual claims, damages, penalties, fines, costs, unexpected outcomes and reputational damage resulting from new, existing, pending or future litigation, regulatory proceedings and enforcement actions;
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•Negative publicity and the impact on Seacoast’s reputation, including the speed and scale at which information can spread through social media or digital channels, which could amplify adverse market or customer reactions;
•The risks that DTAs 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 (including the inability to grow, or attrition of, deposits, customers and employees) from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, non-bank financial technology providers, securities brokerage firms, insurance companies, private credit funds, money market and other mutual funds and other financial institutions;
•The failure of assumptions underlying the establishment of reserves for expected credit losses;
•Impairment of our goodwill or other intangible assets;
•Risks related to, and the costs associated with ESG and anti-ESG matters, including the scope and pace of related rulemaking activity, disclosure requirements and potential litigation and enforcement;
•Action or inaction by the federal government, including as a result of any prolonged government shutdown (including a partial shutdown) or government intervention in the U.S. financial system;
•Legislative, regulatory or supervisory actions related to so‑called “de‑banking,” including any new prohibitions, requirements or enforcement priorities that could affect customer relationships, compliance obligations, or operational practices;
•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 under “Risk Factors” herein and 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 Seacoast are expressly qualified in their entirety by this cautionary notice. The Company assumes no obligation to update, revise or correct any forward-looking statements that are made from time to time, either as a result of future developments, new information or otherwise, except as may be required by law. Additional factors that could cause actual results to differ materially can be found in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, or in other periodic reports that we file with the SEC.
Business Developments
Seacoast’s balanced growth strategy includes both acquisitions and organic growth initiatives. In the second half of 2025, Seacoast acquired both Heartland and VBI. These transformative transactions together added 23 branch locations, $5.3 billion in assets, and $4.2 billion in deposits, bringing leading market share and significant liquidity, further strengthening the Company’s competitive position and enhancing our capacity for sustained profitable growth. Full integration and system conversion activities for Heartland were completed in the third quarter of 2025, and for VBI in the third quarter of 2026. Complementing acquisitions with organic growth, in recent years Seacoast has added experienced bankers in dynamic and growing markets, leading to significant growth in new relationships. These efforts have supported core deposit generation, loan production, and expansion of client relationships across multiple product lines.
Results of Operations
Seacoast provides integrated financial services including commercial and consumer banking, wealth management, mortgage and insurance services to customers at 105 full-service branches across Florida and Georgia, and through advanced mobile and online banking solutions. The Company’s financial results in the third quarter of 2026 included strong growth in loans supporting improved net interest income. Seacoast continues to prudently manage expenses while strategically investing to support continued growth. Highlights for the third quarter of 2026 included:
•Net income of $59.9 million, or $0.55 per diluted share, increased 1% from the second quarter of 2026 and 64% from the third quarter of 2025. Adjusted net income1 of $71.8 million, or $0.66 per diluted share, increased 9% from the second quarter of 2026 and 59% from the third quarter of 2025.
•Adjusted pre-tax pre-provision earnings1 increased 5% compared to the second quarter of 2026 and 49% compared to the third quarter of 2025.
•Net interest income grew 2% compared to the second quarter of 2026 and 37% compared to the third quarter of 2025.
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•The net interest margin was stable at 3.83% compared to the second quarter of 2026, and excluding accretion on acquired loans, expanded one basis point to 3.66% from the second quarter of 2026.
•13% annualized organic loan growth in the third quarter of 2026 and 10% annualized growth year to date.
•Average noninterest-bearing deposits grew 4% annualized from the second quarter of 2026 and noninterest-bearing demand deposits have grown 10% annualized year to date.
•Continued share repurchases, with over 1.2 million shares of common stock repurchased year to date.
•Successfully completed the integration of VBI, solidifying a long-term growth partnership.
•Continued improvement in profitability metrics. Key metrics include:
| Third | Second | Third | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
| Quarter | Quarter | Quarter | ||||||||||||||||||||||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||
| ROA | 1.11 | % | 1.13 | % | 0.88 | % | 0.96 | % | 0.93 | % | ||||||||||||||||||||||
| ROTE | 14.34 | 14.44 | 10.70 | 12.44 | 11.23 | |||||||||||||||||||||||||||
| Efficiency ratio | 61.00 | 58.52 | 64.44 | 59.68 | 62.94 | |||||||||||||||||||||||||||
Adjusted ROA1 | 1.34 | % | 1.25 | % | 1.09 | % | 1.30 | % | 1.02 | % | ||||||||||||||||||||||
Adjusted ROTE1 | 16.89 | 15.79 | 12.98 | 16.32 | 12.25 | |||||||||||||||||||||||||||
Adjusted efficiency ratio1 | 53.87 | 54.54 | 57.63 | 54.56 | 59.77 | |||||||||||||||||||||||||||
1Non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and a reconciliation to GAAP. | ||||||||||||||||||||||||||||||||
Net Interest Income and Margin
Net interest income for the third quarter of 2026 totaled $183.4 million, an increase of $3.0 million, or 2%, compared to the second quarter of 2026, and an increase of $49.9 million, or 37%, compared to the third quarter of 2025. The year-over-year increase was primarily driven by higher loan and securities balances resulting from the acquisitions completed in 2025. Interest income on loans in the third quarter of 2026 increased by $9.2 million, or 5%, compared to the second quarter of 2026, reflecting higher average loan balances and higher core loan yields. Securities income decreased $0.8 million, or 1%, compared to the second quarter of 2026, as improved securities portfolio yields were more than offset by lower average securities balances. Accretion on acquired loans was $8.5 million in the third quarter of 2026, $8.9 million in the second quarter of 2026, and $9.5 million in the third quarter of 2025. Interest expense on deposits increased $4.3 million, or 7%, compared to the second quarter of 2026, and increased $7.7 million, or 13%, compared to the third quarter of 2025, primarily due to higher average balances and higher rates.
For the nine months ended September 30, 2026, net interest income totaled $540.2 million, an increase of $161.4 million, or 43%, compared to the nine months ended September 30, 2025. Interest income on loans for the nine months ended September 30, 2026 increased by $101.6 million, or 22%, compared to the nine months ended September 30, 2025, reflecting higher average loan balances from organic growth and the acquisitions completed in 2025. Securities income increased $86.4 million, or 88%, compared to the nine months ended September 30, 2025, reflecting higher average securities balances and improved portfolio yields following the securities repositioning executed in the first quarter of 2026. Accretion on acquired loans totaled $29.5 million for the nine months ended September 30, 2026, compared to $28.3 million for the nine months ended September 30, 2025. For the nine months ended September 30, 2026, interest expense on deposits increased $18.4 million, or 11%, compared to the nine months ended September 30, 2025, primarily due to higher average balances resulting from bank acquisitions in 2025, partially offset by lower deposit costs.
Net interest margin (on an FTE basis) was stable at 3.83% in the third quarter of 2026 compared to the second quarter of 2026, and expanded 26 basis points from 3.57% in the third quarter of 2025. Excluding the effects of accretion on acquired loans, net interest margin expanded one basis point to 3.66% in the third quarter of 2026 compared to 3.65% in the second quarter of 2026, and increased 34 basis points compared to 3.32% in the third quarter of 2025. The expansion in net interest margin, excluding accretion on acquired loans, was driven by higher securities portfolio yields and improved loan yields, which more than offset higher funding costs. The yield on loans increased to 5.89% for the third quarter of 2026, an increase of one basis point from the second quarter of 2026 and decreased seven basis points from the third quarter of 2025. Yield on loans, excluding accretion on acquired loans, was 5.64%, an increase of three basis points from both the second quarter of 2026 and the third quarter of 2025. The effect on net interest margin of accretion of purchase discounts on acquired loans was an increase of 17 basis points for the third quarter of 2026, 18 basis points in the second quarter of 2026, and 25 basis points in the third
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quarter of 2025. The cost of deposits was 1.60% in the third quarter of 2026, compared to 1.53% in the second quarter of 2026, and 1.81% in the third quarter of 2025. The cost of funds was 1.74% in the third quarter of 2026, compared to 1.69% in the second quarter of 2026, and 1.96% in the third quarter of 2025. Compared to the second quarter of 2026, securities yields increased five basis points in the third quarter of 2026 to 4.52% and increased 60 basis points from the third quarter of 2025.
For the nine months ended September 30, 2026, net interest margin (on an FTE basis) increased 28 basis points to 3.83% compared to the nine months ended September 30, 2025, largely driven by higher securities yields and lower funding costs, including lower deposit costs. The yield on securities was 4.45% for the nine months ended September 30, 2026, compared to 3.89% for the nine months ended September 30, 2025. The yield on total loans decreased from 5.95% for the nine months ended September 30, 2025 to 5.91% for the nine months ended September 30, 2026. The effect on net interest margin of accretion of purchase discounts on acquired loans was an increase of 21 basis points for the nine months ended September 30, 2026, compared to 27 basis points for the nine months ended September 30, 2025. The cost of deposits was 1.56% for the nine months ended September 30, 2026, a decrease of 29 basis points compared to the nine months ended September 30, 2025. The cost of funds was 1.71% for the nine months ended September 30, 2026, a decrease of 29 basis points compared to the nine months ended September 30, 2025.
Average loans increased $479.7 million, or 4%, for the third quarter of 2026 compared to the second quarter of 2026, and increased $2.5 billion, or 23%, from the third quarter of 2025. For the nine months ended September 30, 2026, average loans increased $2.4 billion, or 22%, from the nine months ended September 30, 2025.
Average loans as a percentage of average earning assets totaled 70% for the third quarter of 2026, 67% for the second quarter of 2026, and 73% for the third quarter of 2025. For the nine months ended September 30, 2026, average loans as a percentage of average earning assets totaled 68%, compared to 74% for the nine months ended September 30, 2025.
During the third quarter of 2026, average investment securities decreased $204.6 million, or 4%, compared to the second quarter of 2026, and increased $1.9 billion, or 51%, compared to the third quarter of 2025. The Company sold $234.0 million in securities during the third quarter of 2026 to fund strong loan growth. Securities yields increased five basis points to 4.52% during the third quarter of 2026 from 4.47% in the second quarter of 2026, and increased 60 basis points from 3.92% in the third quarter of 2025. For the nine months ended September 30, 2026, average investment securities were $5.6 billion, an increase of $2.3 billion, or 68%, compared to the nine months ended September 30, 2025.
The cost of average interest-bearing liabilities increased eight basis points in the third quarter of 2026 to 2.27% from 2.19% in the second quarter of 2026 and decreased 36 basis points from 2.63% in the third quarter of 2025. The cost of average total deposits (including noninterest-bearing demand deposits) was 1.60% in the third quarter of 2026, 1.53% in the second quarter of 2026, and 1.81% in the third quarter of 2025. For the nine months ended September 30, 2026, the cost of average total deposits (including noninterest-bearing demand deposits) was 1.56% compared to 1.85% for the nine months ended September 30, 2025.
During the third quarter of 2026, average total deposits increased $185.9 million, or 1%, compared to the second quarter of 2026, and increased $3.7 billion, or 28%, compared to the third quarter of 2025. Average noninterest-bearing deposits grew 4% annualized from the second quarter of 2026. For the nine months ended September 30, 2026, average total deposits increased $3.9 billion, or 31%, compared to the nine months ended September 30, 2025. The Company’s deposit mix remained favorable, with 86% of average deposit balances comprised of savings, money market, and demand deposits for the nine months ended September 30, 2026.
Average balances of sweep repurchase agreements with customers increased $8.5 million, or 2%, from the second quarter of 2026, and increased $128.7 million, or 57%, compared to the third quarter of 2025. The average rate on customer sweep repurchase accounts was 2.24% for the third quarter of 2026, compared to 2.20% for the second quarter of 2026, and 2.40% for the third quarter of 2025. For the nine months ended September 30, 2026, the average balance was $348.8 million, compared to an average balance of $203.9 million for the nine months ended September 30, 2025 with average rates of 2.20% and 2.58%, respectively.
The Company had an average balance of $862.1 million in FHLB and other borrowings outstanding for the third quarter of 2026, with an average interest rate of 3.83%, compared to $915.0 million for the second quarter of 2026, with an average interest rate of 3.77%, and $637.8 million for the third quarter of 2025, with an average interest rate of 4.17%. The Company had an average balance of $874.8 million in FHLB and other borrowings outstanding for the nine months ended September 30, 2026, with an average interest rate of 3.88%, compared to $582.6 million for the nine months ended September 30, 2025, with an average interest rate of 4.27%.
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Long-term debt balances averaged $112.9 million in both the third and second quarters of 2026, and $107.4 million in the third quarter of 2025. The average rate on long-term debt for the third quarter of 2026 was 6.40%, an increase of two basis points compared to the second quarter of 2026 and an increase of seven basis points compared to the third quarter of 2025. For the nine months ended September 30, 2026, long-term debt averaged $112.9 million, compared to $107.2 million for the nine months ended September 30, 2025. The average rate on long-term debt for the nine months ended September 30, 2026 was 6.40%, an increase of one basis point compared to the nine months ended September 30, 2025.
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The following tables detail the Company’s average balance sheets, interest income and expenses, and yields and rates1, for the periods presented:
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Third Quarter | Second Quarter | Third Quarter | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | Average | Yield/ | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands, except ratios) | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Taxable | ` | $ | 5,190,690 | $ | 58,212 | 4.45 | % | $ | 5,392,894 | $ | 59,051 | 4.39 | % | $ | 3,644,261 | $ | 35,975 | 3.92 | % | |||||||||||||||||||||||||||||||||||||
| Nontaxable | 327,915 | 4,719 | 5.71 | 330,322 | 4,727 | 5.74 | 6,752 | 54 | 3.17 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total Securities | 5,518,605 | 62,931 | 4.52 | 5,723,216 | 63,778 | 4.47 | 3,651,013 | 36,029 | 3.92 | |||||||||||||||||||||||||||||||||||||||||||||||
| Federal funds sold | 168,287 | 1,577 | 3.72 | 292,952 | 2,622 | 3.59 | 258,779 | 2,896 | 4.44 | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits with other banks and other investments | 165,698 | 2,026 | 4.85 | 178,126 | 2,194 | 4.94 | 166,683 | 1,884 | 4.48 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total Loans, net | 13,341,725 | 198,111 | 5.89 | 12,862,053 | 188,712 | 5.88 | 10,805,143 | 162,341 | 5.96 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total Earning Assets | 19,194,315 | 264,645 | 5.47 | % | 19,056,347 | 257,306 | 5.42 | % | 14,881,618 | 203,150 | 5.42 | % | ||||||||||||||||||||||||||||||||||||||||||||
| ACL | (183,480) | (177,763) | (144,051) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | 194,192 | 187,161 | 166,884 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Premises and equipment, net | 161,111 | 160,756 | 114,719 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intangible assets | 1,208,953 | 1,214,829 | 827,294 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| BOLI | 336,807 | 334,159 | 321,754 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other assets including DTAs | 395,196 | 350,290 | 317,799 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 21,307,094 | $ | 21,125,779 | $ | 16,486,017 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Liabilities, Convertible Preferred Stock & Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing demand | $ | 3,807,997 | $ | 10,059 | 1.05 | % | $ | 3,976,446 | $ | 11,108 | 1.12 | % | $ | 2,671,750 | $ | 10,623 | 1.58 | % | ||||||||||||||||||||||||||||||||||||||
| Savings | 977,608 | 1,536 | 0.62 | 976,058 | 1,300 | 0.53 | 617,479 | 1,111 | 0.71 | |||||||||||||||||||||||||||||||||||||||||||||||
| Money market | 5,220,359 | 33,900 | 2.58 | 5,124,668 | 31,793 | 2.49 | 4,362,662 | 31,393 | 2.85 | |||||||||||||||||||||||||||||||||||||||||||||||
| Time deposits | 2,541,031 | 21,650 | 3.38 | 2,324,117 | 18,663 | 3.22 | 1,826,068 | 16,341 | 3.55 | |||||||||||||||||||||||||||||||||||||||||||||||
| Securities sold under agreements to repurchase | 353,074 | 1,994 | 2.24 | 344,612 | 1,889 | 2.20 | 224,328 | 1,359 | 2.40 | |||||||||||||||||||||||||||||||||||||||||||||||
| FHLB and other borrowings | 862,109 | 8,331 | 3.83 | 915,000 | 8,608 | 3.77 | 637,826 | 6,703 | 4.17 | |||||||||||||||||||||||||||||||||||||||||||||||
| Long-term debt, net and other | 112,941 | 1,821 | 6.40 | 112,867 | 1,795 | 6.38 | 107,372 | 1,714 | 6.33 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total Interest-Bearing Liabilities | 13,875,119 | 79,291 | 2.27 | % | 13,773,768 | 75,156 | 2.19 | % | 10,447,485 | 69,244 | 2.63 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Noninterest demand | 4,152,498 | 4,112,281 | 3,541,749 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 208,520 | 164,252 | 151,550 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities | 18,236,137 | 18,050,301 | 14,140,784 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Convertible preferred stock | 343,125 | 343,125 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders’ equity | 2,727,832 | 2,732,353 | 2,345,233 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities, Convertible Preferred Stock & Equity | $ | 21,307,094 | $ | 21,125,779 | $ | 16,486,017 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Cost of deposits | 1.60 | % | 1.53 | % | 1.81 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of funds2 | 1.74 | 1.69 | 1.96 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense as a % of earning assets | 1.64 | 1.58 | 1.85 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income as a % of earning assets | $ | 185,354 | 3.83% | $ | 182,150 | 3.83% | $ | 133,906 | 3.57% | |||||||||||||||||||||||||||||||||||||||||||||||
1On an FTE basis, a non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and a reconciliation to GAAP. All yields and rates have been computed on an annual basis using amortized cost. Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2Total interest expense as a percentage of total interest-bearing liabilities and noninterest demand deposits. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||||||||||||||||||||||||||
| (In thousands, except ratios) | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||||||||
| Earning assets: | ||||||||||||||||||||||||||||||||||||||
| Securities: | ||||||||||||||||||||||||||||||||||||||
| Taxable | $ | 5,313,350 | $ | 173,842 | 4.37 | % | $ | 3,362,823 | $ | 97,835 | 3.89 | % | ||||||||||||||||||||||||||
| Nontaxable | 330,520 | 14,147 | 5.72 | 5,841 | 136 | 3.11 | ||||||||||||||||||||||||||||||||
| Total Securities | 5,643,870 | 187,989 | 4.45 | 3,368,664 | 97,971 | 3.89 | ||||||||||||||||||||||||||||||||
| Federal funds sold | 257,199 | 6,939 | 3.61 | 235,825 | 7,882 | 4.47 | ||||||||||||||||||||||||||||||||
| Interest-bearing deposits with other banks and other investments | 177,487 | 6,364 | 4.79 | 136,760 | 4,858 | 4.75 | ||||||||||||||||||||||||||||||||
| Total Loans, net | 12,960,775 | 573,049 | 5.91 | 10,584,090 | 470,812 | 5.95 | ||||||||||||||||||||||||||||||||
| Total Earning Assets | 19,039,331 | 774,341 | 5.44 | % | 14,325,339 | 581,523 | 5.43 | % | ||||||||||||||||||||||||||||||
| ACL | (180,248) | (141,285) | ||||||||||||||||||||||||||||||||||||
| Cash and due from banks | 187,380 | 159,428 | ||||||||||||||||||||||||||||||||||||
| Premises and equipment, net | 161,789 | 110,548 | ||||||||||||||||||||||||||||||||||||
| Intangible assets | 1,216,400 | 808,564 | ||||||||||||||||||||||||||||||||||||
| BOLI | 334,184 | 314,700 | ||||||||||||||||||||||||||||||||||||
| Other assets including DTAs | 361,829 | 320,985 | ||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 21,120,665 | $ | 15,898,279 | ||||||||||||||||||||||||||||||||||
| Liabilities, Convertible Preferred Stock & Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
| Interest-bearing demand | $ | 3,923,032 | $ | 32,696 | 1.11 | % | $ | 2,666,794 | $ | 31,941 | 1.60 | % | ||||||||||||||||||||||||||
| Savings | 975,415 | 4,096 | 0.56 | 564,624 | 2,690 | 0.64 | ||||||||||||||||||||||||||||||||
| Money market | 5,174,167 | 97,490 | 2.52 | 4,212,205 | 92,760 | 2.94 | ||||||||||||||||||||||||||||||||
| Time deposits | 2,350,192 | 57,896 | 3.29 | 1,725,364 | 46,434 | 3.60 | ||||||||||||||||||||||||||||||||
| Securities sold under agreements to repurchase | 348,772 | 5,736 | 2.20 | 203,943 | 3,930 | 2.58 | ||||||||||||||||||||||||||||||||
| FHLB and other borrowings | 874,832 | 25,368 | 3.88 | 582,565 | 18,584 | 4.27 | ||||||||||||||||||||||||||||||||
| Long-term debt, net and other | 112,876 | 5,401 | 6.40 | 107,207 | 5,126 | 6.39 | ||||||||||||||||||||||||||||||||
| Total Interest-Bearing Liabilities | 13,759,286 | 228,683 | 2.22 | % | 10,062,702 | 201,465 | 2.68 | % | ||||||||||||||||||||||||||||||
| Noninterest demand | 4,093,867 | 3,413,252 | ||||||||||||||||||||||||||||||||||||
| Other liabilities | 184,227 | 151,036 | ||||||||||||||||||||||||||||||||||||
| Total Liabilities | 18,037,380 | 13,626,990 | ||||||||||||||||||||||||||||||||||||
| Convertible preferred stock | 343,125 | — | ||||||||||||||||||||||||||||||||||||
| Shareholders' equity | 2,740,160 | 2,271,289 | ||||||||||||||||||||||||||||||||||||
| Total Liabilities, Convertible Preferred Stock & Equity | $ | 21,120,665 | $ | 15,898,279 | ||||||||||||||||||||||||||||||||||
| Cost of deposits | 1.56 | % | 1.85 | % | ||||||||||||||||||||||||||||||||||
Cost of funds2 | 1.71 | 2.00 | ||||||||||||||||||||||||||||||||||||
| Interest expense as a % of earning assets | 1.61 | 1.88 | ||||||||||||||||||||||||||||||||||||
| Net interest income as a % of earning assets | $ | 545,658 | 3.83% | $ | 380,058 | 3.55% | ||||||||||||||||||||||||||||||||
1On an FTE basis, a non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP. All yields and rates have been computed on an annual basis using amortized cost. Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances. | ||||||||||||||||||||||||||||||||||||||
2Total interest expense as a percentage of total interest-bearing liabilities and noninterest demand deposits. | ||||||||||||||||||||||||||||||||||||||
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Noninterest Income
Noninterest income totaled $31.6 million for the third quarter of 2026, an increase of $3.8 million, or 14%, compared to the second quarter of 2026, and an increase of $7.8 million, or 33%, compared to the third quarter of 2025. Noninterest income totaled $46.8 million for the nine months ended September 30, 2026, a decrease of $23.8 million, or 34%, compared to the nine months ended September 30, 2025.
Noninterest income is detailed as follows:
| Third | Second | Third | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
| Quarter | Quarter | Quarter | ||||||||||||||||||||||||||||||
| (In thousands) | 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||
| Service charges on deposit accounts | $ | 7,088 | $ | 7,045 | $ | 6,194 | $ | 21,045 | $ | 16,914 | ||||||||||||||||||||||
| Wealth management income | 6,094 | 5,968 | 4,578 | 17,839 | 13,022 | |||||||||||||||||||||||||||
| Mortgage banking income | 4,739 | 2,744 | 517 | 9,649 | 1,606 | |||||||||||||||||||||||||||
| Interchange income | 2,258 | 2,093 | 2,008 | 6,418 | 5,710 | |||||||||||||||||||||||||||
| Insurance agency income | 1,847 | 1,336 | 1,481 | 4,973 | 4,390 | |||||||||||||||||||||||||||
| BOLI income | 2,647 | 2,609 | 3,875 | 7,873 | 9,723 | |||||||||||||||||||||||||||
| Other | 7,468 | 6,042 | 6,006 | 19,095 | 19,760 | |||||||||||||||||||||||||||
| Total Noninterest Income Before Securities Losses, Net | 32,141 | 27,837 | 24,659 | 86,892 | 71,125 | |||||||||||||||||||||||||||
| Securities losses, net | (539) | (59) | (841) | (40,126) | (606) | |||||||||||||||||||||||||||
| Total | $ | 31,602 | $ | 27,778 | $ | 23,818 | $ | 46,766 | $ | 70,519 | ||||||||||||||||||||||
Service charges on deposits totaled $7.1 million in the third quarter of 2026, a nominal increase compared to the second quarter of 2026, and an increase of $0.9 million, or 14%, compared to the third quarter of 2025. For the nine months ended September 30, 2026, service charges on deposits totaled $21.0 million, an increase of $4.1 million, or 24%, compared to the nine months ended September 30, 2025. Year-over-year growth is primarily attributable to bank acquisitions in 2025 and growth in customer relationships.
Wealth management income, including trust fees and brokerage commissions and fees, was $6.1 million in the third quarter of 2026, an increase of $0.1 million, or 2%, from the second quarter of 2026 and an increase of $1.5 million, or 33%, compared to the third quarter of 2025. For the nine months ended September 30, 2026, wealth management income totaled $17.8 million, an increase of $4.8 million, or 37%, compared to the nine months ended September 30, 2025. The wealth management division has continued to deliver significant growth, driven by robust organic business development and continued asset inflows from existing relationships, with assets under management increasing $375.7 million, or 13%, from December 31, 2025, to $3.2 billion at September 30, 2026.
Mortgage banking income totaled $4.7 million, an increase of $2.0 million, or 73%, compared to the second quarter of 2026, with higher interest rates driving higher values on MSR, offsetting valuation declines from the first half of 2026. Comparisons to year-over-year periods are impacted by the October 2025 acquisition of VBI resulting in the addition of mortgage origination activity in The Villages communities.
Interchange income totaled $2.3 million, an increase of $0.2 million, or 8%, compared to the second quarter of 2026 and an increase of $0.3 million, or 12%, compared to the third quarter of 2025. For the nine months ended September 30, 2026, interchange income totaled $6.4 million, an increase of $0.7 million, or 12%, compared to the nine months ended September 30, 2025.
Insurance agency income totaled $1.8 million, an increase of $0.5 million, or 38%, compared to the second quarter of 2026 and an increase of $0.4 million, or 25%, compared to the third quarter of 2025. For the nine months ended September 30, 2026, insurance agency income totaled $5.0 million, an increase of $0.6 million, or 13%, compared to the nine months ended September 30, 2025. The increases reflect continued growth in the business, including a small agency acquisition completed in the third quarter of 2026.
BOLI income remained flat at $2.6 million for the third quarter of 2026 compared to the second quarter of 2026, and decreased $1.2 million, or 32%, compared to the third quarter of 2025. The third quarter of 2025 included death benefit payouts of $1.3 million. For the nine months ended September 30, 2026, BOLI income totaled $7.9 million, a decrease of $1.9 million, or 19%, compared to the nine months ended September 30, 2025.
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Other income was $7.5 million in the third quarter of 2026, an increase of $1.4 million, or 24%, compared to the second quarter of 2026 and an increase of $1.5 million, or 24%, compared to the third quarter of 2025. The third quarter of 2026 included higher swap and syndication fees, higher gains on SBA loan sales and higher unrealized gains on SBIC investments compared to the second quarter of 2026. For the nine months ended September 30, 2026, other income totaled $19.1 million, a decrease of $0.7 million, or 3%, compared to the nine months ended September 30, 2025.
Net securities activity resulted in losses of $0.5 million during the third quarter of 2026, compared to $0.1 million in the second quarter of 2026, and $0.8 million in the third quarter of 2025. For the nine months ended September 30, 2026 and 2025, net securities activity resulted in losses of $40.1 million and $0.6 million, respectively. The first quarter of 2026 included the strategic repositioning of a portion of the AFS securities portfolio.
Noninterest Expenses
Noninterest expense for the third quarter of 2026 totaled $133.3 million, an increase of $10.2 million, or 8%, compared to the second quarter of 2026, and an increase of $31.3 million, or 31%, from the third quarter of 2025. For the nine months ended September 30, 2026, noninterest expense totaled $378.6 million, an increase of $94.3 million, or 33%, compared to the nine months ended September 30, 2025. Seacoast continues to prudently manage expenses while strategically investing to support continued growth. Year-over-year increases reflect continued expansion of the footprint and growth in customers, including through bank acquisitions. Noninterest expenses are detailed as follows:
| Third | Second | Third | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
| Quarter | Quarter | Quarter | ||||||||||||||||||||||||||||||
| (In thousands) | 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||
| Salaries and employee benefits | $ | 63,441 | $ | 63,115 | $ | 53,697 | $ | 189,201 | $ | 157,350 | ||||||||||||||||||||||
| Outsourced data processing costs | 12,465 | 12,242 | 9,337 | 36,702 | 26,366 | |||||||||||||||||||||||||||
| Occupancy | 9,385 | 9,591 | 7,627 | 28,211 | 22,460 | |||||||||||||||||||||||||||
| Furniture and equipment | 3,150 | 2,803 | 2,233 | 8,774 | 6,486 | |||||||||||||||||||||||||||
| Marketing | 3,515 | 3,525 | 2,509 | 10,507 | 8,215 | |||||||||||||||||||||||||||
| Legal and professional fees | 2,726 | 2,480 | 1,674 | 8,376 | 6,485 | |||||||||||||||||||||||||||
| FDIC assessments | 3,126 | 2,759 | 2,414 | 9,080 | 6,716 | |||||||||||||||||||||||||||
| Amortization of intangibles | 9,934 | 9,960 | 6,005 | 29,992 | 16,445 | |||||||||||||||||||||||||||
| OREO expense and net loss (gain) on sale | 497 | 85 | (346) | 645 | (97) | |||||||||||||||||||||||||||
| Provision for credit losses on unfunded commitments | 150 | 150 | 150 | 450 | 450 | |||||||||||||||||||||||||||
| Merger and integration costs | 15,506 | 8,358 | 10,808 | 32,400 | 14,281 | |||||||||||||||||||||||||||
| Other | 9,430 | 8,042 | 5,879 | 24,268 | 19,157 | |||||||||||||||||||||||||||
| Total | $ | 133,325 | $ | 123,110 | $ | 101,987 | $ | 378,606 | $ | 284,314 | ||||||||||||||||||||||
Salaries and employee benefits totaled $63.4 million, an increase of $0.3 million, or 1%, from the second quarter of 2026, and an increase of $9.7 million, or 18%, from the third quarter of 2025. For the nine months ended September 30, 2026, salaries and employee benefits totaled $189.2 million, an increase of $31.9 million, or 20%, compared to the nine months ended September 30, 2025.
The Company utilizes third parties for its core data processing systems. Ongoing data processing costs are directly related to the number of transactions processed and the negotiated rates associated with those transactions. Outsourced data processing costs totaled $12.5 million, an increase of $0.2 million, or 2%, from the second quarter of 2026, and an increase of $3.1 million, or 34%, from the third quarter of 2025. For the nine months ended September 30, 2026, outsourced data processing costs totaled $36.7 million, an increase of $10.3 million, or 39%, compared to the nine months ended September 30, 2025.
Total occupancy and furniture and equipment expenses were $12.5 million, an increase of $0.1 million, or 1%, from the second quarter of 2026, and an increase of $2.7 million, or 27%, from the third quarter of 2025. For the nine months ended September 30, 2026, occupancy and furniture and equipment expenses totaled $37.0 million, an increase of $8.0 million, or 28%, compared to the nine months ended September 30, 2025.
Marketing expenses totaled $3.5 million, remaining flat from the second quarter of 2026, and increasing $1.0 million, or 40%, from the third quarter of 2025. For the nine months ended September 30, 2026, marketing expenses totaled $10.5 million, an increase of $2.3 million, or 28%, compared to the nine months ended September 30, 2025.
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Legal and professional fees for the third quarter of 2026 were $2.7 million, an increase of $0.2 million, or 10%, compared to the second quarter of 2026, and an increase of $1.1 million, or 63%, compared to the third quarter of 2025. For the nine months ended September 30, 2026, legal and professional fees totaled $8.4 million, an increase of $1.9 million, or 29%, compared to the nine months ended September 30, 2025.
Merger and integration costs were $15.5 million in the third quarter of 2026, $8.4 million in the second quarter of 2026, and $10.8 million in the third quarter of 2025. Having completed system integration activities in the third quarter of 2026 related to the VBI acquisition, the Company does not expect to incur significant additional merger and integration costs related to either the VBI or Heartland acquisitions. For the nine months ended September 30, 2026, merger and integration costs totaled $32.4 million compared to $14.3 million for the nine months ended September 30, 2025.
Provision for Credit Losses
The provision for credit losses was $6.3 million in the third quarter of 2026, $9.0 million in the second quarter of 2026, and $8.4 million in the third quarter of 2025. The acquisition of Heartland resulted in a day-one provision of $1.9 million in the third quarter of 2025. For the nine months ended September 30, 2026, the provision for credit losses was $16.1 million, compared to $22.0 million for the nine months ended September 30, 2025. See additional information in "ACL on Loans" in this report.
Income Taxes
For the third quarter of 2026, the Company recorded tax expense of $15.5 million, a decrease of $1.1 million, or 6%, compared to the second quarter of 2026 and an increase of $5.0 million, or 48%, compared to the third quarter of 2025. The effective tax rate for the third quarter of 2026 was 20.5%, compared to 21.7% in the second quarter of 2026 and 22.3% in the third quarter of 2025. For the nine months ended September 30, 2026, tax expense totaled $41.0 million, an increase of $8.6 million, or 26%, compared to the nine months ended September 30, 2025, with an effective tax rate of 21.3% for the nine months ended September 30, 2026, compared to 22.7% for the nine months ended September 30, 2025.
Explanation of Certain Unaudited Non-GAAP Financial Measures
This report contains financial information determined by methods other than GAAP. The financial highlights provide reconciliations between GAAP and adjusted financial measures including net income, FTE net interest income, noninterest income, noninterest expense, tax adjustments, net interest margin and other financial ratios. Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance. The Company believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance and if not provided would be requested by the investor community. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might define or calculate these measures differently. The Company provides reconciliations between GAAP and these non-GAAP measures. These disclosures should not be considered an alternative to GAAP.
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Reconciliation of Non-GAAP Measures
| Third | Second | Third | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
| Quarter | Quarter | Quarter | ||||||||||||||||||||||||||||||
| (Amounts in thousands, except per share data) | 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||
| Net income | $ | 59,868 | $ | 59,535 | $ | 36,467 | $ | 151,298 | $ | 110,618 | ||||||||||||||||||||||
| Total noninterest income | 31,602 | 27,778 | 23,818 | 46,766 | 70,519 | |||||||||||||||||||||||||||
| Securities losses, net | 539 | 59 | 841 | 40,126 | 606 | |||||||||||||||||||||||||||
| Total adjusted noninterest income | 32,141 | 27,837 | 24,659 | 86,892 | 71,125 | |||||||||||||||||||||||||||
| Total noninterest expense | 133,325 | 123,110 | 101,987 | 378,606 | 284,314 | |||||||||||||||||||||||||||
| Merger and integration costs | (15,506) | (8,358) | (10,808) | (32,400) | (14,281) | |||||||||||||||||||||||||||
| Adjusted noninterest expense | 117,819 | 114,752 | 91,179 | 346,206 | 270,033 | |||||||||||||||||||||||||||
| Income taxes | 15,467 | 16,531 | 10,461 | 41,027 | 32,436 | |||||||||||||||||||||||||||
| Tax effect of adjustments | 4,067 | 2,133 | 2,952 | 18,382 | 3,773 | |||||||||||||||||||||||||||
| Adjusted income taxes | 19,534 | 18,664 | 13,413 | 59,409 | 36,209 | |||||||||||||||||||||||||||
| Adjusted net income | 71,846 | 65,819 | 45,164 | 205,442 | 121,732 | |||||||||||||||||||||||||||
| Earnings per common share-diluted, as reported | 0.55 | 0.55 | 0.42 | 1.39 | 1.28 | |||||||||||||||||||||||||||
| Adjusted earnings per common share-diluted | $ | 0.66 | $ | 0.61 | $ | 0.52 | $ | 1.89 | $ | 1.41 | ||||||||||||||||||||||
| Average common shares-diluted | 97,237 | 97,250 | 87,425 | 97,487 | 86,154 | |||||||||||||||||||||||||||
| Average preferred shares, treating all convertible preferred shares as common | 11,250 | 11,250 | — | 11,250 | — | |||||||||||||||||||||||||||
| Average common shares-diluted, treating all convertible preferred shares as common | 108,487 | 108,500 | 87,425 | 108,737 | 86,154 | |||||||||||||||||||||||||||
| Adjusted noninterest expense | $ | 117,819 | $ | 114,752 | $ | 91,179 | $ | 346,206 | $ | 270,033 | ||||||||||||||||||||||
| Provision for credit losses on unfunded commitments | (150) | (150) | (150) | (450) | (450) | |||||||||||||||||||||||||||
| OREO expense and net (loss) gain on sale | (497) | (85) | 346 | (645) | 97 | |||||||||||||||||||||||||||
| Amortization of intangibles | (9,934) | (9,960) | (6,005) | (29,992) | (16,445) | |||||||||||||||||||||||||||
| Net adjusted noninterest expense | 107,238 | 104,557 | 85,370 | 315,119 | 253,235 | |||||||||||||||||||||||||||
| Average tangible assets | $ | 20,098,141 | $ | 19,910,950 | $ | 15,658,723 | $ | 19,904,265 | $ | 15,089,715 | ||||||||||||||||||||||
| Net adjusted noninterest expense to average tangible assets | 2.12 | % | 2.11 | % | 2.16 | % | 2.12 | % | 2.24 | % | ||||||||||||||||||||||
| Net revenue | $ | 214,957 | $ | 208,173 | $ | 157,286 | $ | 586,986 | $ | 449,368 | ||||||||||||||||||||||
| Total adjustments to net revenue | 539 | 59 | 841 | 40,126 | 606 | |||||||||||||||||||||||||||
| Impact of FTE adjustment | 1,999 | 1,755 | 438 | 5,438 | 1,209 | |||||||||||||||||||||||||||
| Adjusted net revenue on an FTE basis | $ | 217,495 | $ | 209,987 | $ | 158,565 | $ | 632,550 | $ | 451,183 | ||||||||||||||||||||||
| Adjusted efficiency ratio | 53.87 | % | 54.54 | % | 57.63 | % | 54.56 | % | 59.77 | % | ||||||||||||||||||||||
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| Third | Second | Third | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
| Quarter | Quarter | Quarter | ||||||||||||||||||||||||||||||
| (Amounts in thousands, except per share data) | 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||
| Net interest income | $ | 183,355 | $ | 180,395 | $ | 133,468 | $ | 540,220 | $ | 378,849 | ||||||||||||||||||||||
| Impact of FTE adjustment | 1,999 | 1,755 | 438 | 5,438 | 1,209 | |||||||||||||||||||||||||||
| Net interest income including FTE adjustment | 185,354 | 182,150 | 133,906 | 545,658 | 380,058 | |||||||||||||||||||||||||||
| Total noninterest income | 31,602 | 27,778 | 23,818 | 46,766 | 70,519 | |||||||||||||||||||||||||||
| Total noninterest expense less provision for credit losses on unfunded commitments | 133,175 | 122,960 | 101,837 | 378,156 | 283,864 | |||||||||||||||||||||||||||
| Pre-tax pre-provision earnings | 83,781 | 86,968 | 55,887 | 214,268 | 166,713 | |||||||||||||||||||||||||||
| Total adjustments to noninterest income | 539 | 59 | 841 | 40,126 | 606 | |||||||||||||||||||||||||||
| Total adjustments to noninterest expense including OREO expense and net (loss) gain on sale | 16,003 | 8,443 | 10,462 | 33,045 | 14,184 | |||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision earnings | $ | 100,323 | $ | 95,470 | $ | 67,190 | $ | 287,439 | $ | 181,503 | ||||||||||||||||||||||
| Average assets | 21,307,094 | 21,125,779 | 16,486,017 | 21,120,665 | 15,898,279 | |||||||||||||||||||||||||||
| Less average goodwill and intangible assets | (1,208,953) | (1,214,829) | (827,294) | (1,216,400) | (808,564) | |||||||||||||||||||||||||||
| Average tangible assets | $ | 20,098,141 | $ | 19,910,950 | $ | 15,658,723 | $ | 19,904,265 | $ | 15,089,715 | ||||||||||||||||||||||
| ROA | 1.11 | % | 1.13 | % | 0.88 | % | 0.96 | % | 0.93 | % | ||||||||||||||||||||||
| Impact of other adjustments for adjusted net income | 0.23 | 0.12 | 0.21 | 0.34 | 0.09 | |||||||||||||||||||||||||||
| Adjusted ROA | 1.34 | 1.25 | 1.09 | 1.30 | 1.02 | |||||||||||||||||||||||||||
| ROE | 8.71 | 8.74 | 6.17 | 7.38 | 6.51 | |||||||||||||||||||||||||||
| Impact of other adjustments for adjusted net income | 1.74 | 0.92 | 1.47 | 2.64 | 0.65 | |||||||||||||||||||||||||||
| Adjusted ROE | 10.45 | % | 9.66 | % | 7.64 | % | 10.02 | % | 7.17 | % | ||||||||||||||||||||||
| Average shareholders’ equity | $ | 2,727,832 | $ | 2,732,353 | $ | 2,345,233 | $ | 2,740,160 | $ | 2,271,289 | ||||||||||||||||||||||
| Average convertible preferred stock | 343,125 | 343,125 | — | 343,125 | — | |||||||||||||||||||||||||||
| Less average goodwill and intangible assets | (1,208,953) | (1,214,829) | (827,294) | (1,216,400) | (808,564) | |||||||||||||||||||||||||||
| Average tangible equity | $ | 1,862,004 | $ | 1,860,649 | $ | 1,517,939 | $ | 1,866,885 | $ | 1,462,725 | ||||||||||||||||||||||
| ROE | 8.71 | % | 8.74 | % | 6.17 | % | 7.38 | % | 6.51 | % | ||||||||||||||||||||||
| Impact of adding convertible preferred stock and removing average intangible assets and related amortization | 5.63 | 5.70 | 4.53 | 5.06 | 4.72 | |||||||||||||||||||||||||||
| ROTE | 14.34 | 14.44 | 10.70 | 12.44 | 11.23 | |||||||||||||||||||||||||||
| Impact of other adjustments for adjusted net income | 2.55 | 1.35 | 2.28 | 3.88 | 1.02 | |||||||||||||||||||||||||||
| Adjusted ROTE | 16.89 | % | 15.79 | % | 12.98 | % | 16.32 | % | 12.25 | % | ||||||||||||||||||||||
Loan interest income1 | $ | 198,111 | $ | 188,712 | $ | 162,341 | $ | 573,049 | $ | 470,812 | ||||||||||||||||||||||
| Accretion on acquired loans | (8,493) | (8,901) | (9,543) | (29,488) | (28,347) | |||||||||||||||||||||||||||
Loan interest income excluding accretion on acquired loans1 | $ | 189,618 | $ | 179,811 | $ | 152,798 | $ | 543,561 | $ | 442,465 | ||||||||||||||||||||||
Yield on loans1 | 5.89 | % | 5.88 | % | 5.96 | % | 5.91 | % | 5.95 | % | ||||||||||||||||||||||
| Impact of accretion on acquired loans | (0.25) | (0.27) | (0.35) | (0.30) | (0.36) | |||||||||||||||||||||||||||
Yield on loans excluding accretion on acquired loans1 | 5.64 | % | 5.61 | % | 5.61 | % | 5.61 | % | 5.59 | % | ||||||||||||||||||||||
Net interest income1 | $ | 185,354 | $ | 182,150 | $ | 133,906 | $ | 545,658 | $ | 380,058 | ||||||||||||||||||||||
| Accretion on acquired loans | (8,493) | (8,901) | (9,543) | (29,488) | (28,347) | |||||||||||||||||||||||||||
Net interest income excluding accretion on acquired loans1 | $ | 176,861 | $ | 173,249 | $ | 124,363 | $ | 516,170 | $ | 351,711 | ||||||||||||||||||||||
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| Third | Second | Third | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
| Quarter | Quarter | Quarter | ||||||||||||||||||||||||||||||
| (Amounts in thousands, except per share data) | 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||
Net interest margin1 | 3.83 | % | 3.83 | % | 3.57 | % | 3.83 | % | 3.55 | % | ||||||||||||||||||||||
| Impact of accretion on acquired loans | (0.17) | (0.18) | (0.25) | (0.21) | (0.27) | |||||||||||||||||||||||||||
Net interest margin excluding accretion on acquired loans1 | 3.66 | % | 3.65 | % | 3.32 | % | 3.62 | % | 3.28 | % | ||||||||||||||||||||||
Securities interest income1 | $ | 62,931 | $ | 63,778 | $ | 36,029 | $ | 187,989 | $ | 97,971 | ||||||||||||||||||||||
| FTE adjustment to securities | (1,202) | (1,204) | (10) | (3,595) | (25) | |||||||||||||||||||||||||||
| Securities interest income excluding FTE adjustment | 61,729 | 62,574 | 36,019 | 184,394 | 97,946 | |||||||||||||||||||||||||||
Loan interest income1 | 198,111 | 188,712 | 162,341 | 573,049 | 470,812 | |||||||||||||||||||||||||||
| FTE adjustment to loans | (797) | (551) | (428) | (1,843) | (1,184) | |||||||||||||||||||||||||||
| Loan interest income excluding FTE adjustment | 197,314 | 188,161 | 161,913 | 571,206 | 469,628 | |||||||||||||||||||||||||||
Net interest income1 | 185,354 | 182,150 | 133,906 | 545,658 | 380,058 | |||||||||||||||||||||||||||
| FTE adjustments to securities | (1,202) | (1,204) | (10) | (3,595) | (25) | |||||||||||||||||||||||||||
| FTE adjustments to loans | (797) | (551) | (428) | (1,843) | (1,184) | |||||||||||||||||||||||||||
| Net interest income excluding FTE adjustments | $ | 183,355 | $ | 180,395 | $ | 133,468 | $ | 540,220 | $ | 378,849 | ||||||||||||||||||||||
1On an FTE basis. All yields and rates have been computed using amortized cost. | ||||||||||||||||||||||||||||||||
Financial Condition
Total assets as of September 30, 2026 were $21.2 billion, an increase of $0.4 billion, or 2%, from December 31, 2025.
Securities
Information related to yields, maturities, carrying values, and fair value of the Company’s securities is set forth in “Note 3 – Securities” in this report.
At September 30, 2026, the Company had $4.6 billion in AFS securities and $553.0 million in HTM securities. The Company’s total debt securities portfolio decreased $563.4 million from December 31, 2025. During the first quarter of 2026, the Company repositioned a portion of its AFS securities portfolio. Securities with an average book yield of 1.9% were sold, resulting in a pre-tax loss of approximately $39.5 million. The proceeds of approximately $277.0 million were reinvested in primarily agency mortgage-backed securities with an average taxable equivalent book yield of 4.8%. During the third quarter of 2026, the Company sold $234.0 million of securities, recognizing nominal losses.
At September 30, 2026, AFS securities had gross unrealized losses of $349.8 million and gross unrealized gains of $1.1 million, compared to gross unrealized losses of $150.4 million and gross unrealized gains of $48.7 million at December 31, 2025. Seacoast’s AFS portfolio has an effective duration of approximately five years, and longer duration holdings saw a greater decline in value from higher market rates and wider spreads at September 30, 2026.
The credit quality of the Company’s securities holdings is strong. U.S. Treasury securities, obligations of U.S. government agencies, and obligations of U.S. government sponsored entities totaled $4.3 billion, or 83%, of the total portfolio at September 30, 2026, compared to 80% of the total portfolio at December 31, 2025. The AFS portfolio also includes $317.3 million in floating rate CLOs. CLOs are special purpose vehicles that purchase first lien broadly syndicated corporate loans while providing support to senior tranche investors. As of September 30, 2026, all of the Company’s CLOs were in AAA/AA tranches with weighted-average credit support of 28%. The Company utilizes credit models with assumptions of loan level defaults, recoveries, and prepayments to evaluate each security for potential credit losses. The result of this analysis did not indicate expected credit losses.
At September 30, 2026, the AFS portfolio also includes $591.6 million in investment grade bonds with a fair value of $554.5 million. At September 30, 2026, the Company has determined that all debt securities in an unrealized loss position are the result of both broad investment type spreads and the current interest rate environment. Management believes that each investment will recover any price depreciation over its holding period as the debt securities move to maturity, and management has the intent
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and ability to hold these investments to maturity if necessary. Therefore, at September 30, 2026, no allowance has been recorded.
HTM securities consist solely of mortgage-backed securities and collateralized mortgage obligations guaranteed by U.S. government-sponsored entities, each of which is expected to recover any price depreciation over its holding period as the debt securities move to maturity. The Company has significant liquidity and available borrowing capacity through other sources if needed and has the intent and ability to hold these investments to maturity.
Loan Portfolio
Loans, net of unearned income and excluding the ACL, were $13.6 billion at September 30, 2026, an increase of $946.2 million, or 7.5%, from December 31, 2025.
The Company remains committed to sound risk management practices. Portfolio diversification in terms of asset mix, industry, and loan type has been and continues to be an important element of the Company’s lending strategy. The average loan size is $478 thousand, and the average commercial loan size is $1.1 million at September 30, 2026, compared to $435 thousand and $942 thousand, respectively, at December 31, 2025, reflecting the Company’s longtime focus on granularity and on creating valuable customer relationships. Lending policies contain guardrails that pertain to lending by type of collateral and purpose, along with limits regarding loan concentrations and the principal amount of loans. The Company’s exposure to CRE lending remains well below regulatory limits (see “Loan Concentrations”).
The following tables detail loan portfolio composition at September 30, 2026 and December 31, 2025 for portfolio loans, PCD loans, and loans purchased which are not considered credit deteriorated (“Non-PCD”) as defined in “Note 4 - Loans”.
| September 30, 2026 | ||||||||||||||||||||||||||||||||
| (In thousands) | Portfolio Loans | Acquired Non-PCD Loans | PCD Loans | Total | % to Total Loans | |||||||||||||||||||||||||||
| Construction and land development | $ | 890,170 | $ | 56,285 | $ | 533 | $ | 946,988 | 7 | % | ||||||||||||||||||||||
| CRE - owner occupied | 1,748,659 | 408,552 | 19,837 | 2,177,048 | 16 | |||||||||||||||||||||||||||
| CRE - non-owner occupied | 3,303,295 | 1,010,223 | 171,761 | 4,485,279 | 34 | |||||||||||||||||||||||||||
| Residential real estate | 2,390,830 | 862,235 | 28,390 | 3,281,455 | 24 | |||||||||||||||||||||||||||
| Commercial and financial | 2,101,874 | 376,240 | 12,805 | 2,490,919 | 18 | |||||||||||||||||||||||||||
| Consumer | 150,398 | 41,820 | 304 | 192,522 | 1 | |||||||||||||||||||||||||||
| Totals | $ | 10,585,226 | $ | 2,755,355 | $ | 233,630 | $ | 13,574,211 | 100 | % | ||||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||||||||||||||
| (In thousands) | Portfolio Loans | Acquired Non-PCD Loans | PCD Loans | Total | % to Total Loans | |||||||||||||||||||||||||||
| Construction and land development | $ | 579,141 | $ | 141,326 | $ | 3,463 | $ | 723,930 | 6 | % | ||||||||||||||||||||||
| CRE - owner occupied | 1,505,798 | 509,118 | 28,709 | 2,043,625 | 16 | |||||||||||||||||||||||||||
| CRE - non-owner occupied | 2,911,189 | 1,193,351 | 150,452 | 4,254,992 | 34 | |||||||||||||||||||||||||||
| Residential real estate | 2,101,868 | 963,836 | 33,155 | 3,098,859 | 25 | |||||||||||||||||||||||||||
| Commercial and financial | 1,828,038 | 476,130 | 16,821 | 2,320,989 | 18 | |||||||||||||||||||||||||||
| Consumer | 141,768 | 43,321 | 500 | 185,589 | 1 | |||||||||||||||||||||||||||
| Totals | $ | 9,067,802 | $ | 3,327,082 | $ | 233,100 | $ | 12,627,984 | 100 | % | ||||||||||||||||||||||
The amortized cost basis of loans included net deferred costs of $48.3 million at September 30, 2026 and $46.3 million at December 31, 2025. At September 30, 2026, the remaining fair value adjustments on acquired loans were $120.8 million, or 3.9% of the outstanding acquired loan balances, compared to $150.0 million, or 4.0% of the acquired loan balances at December 31, 2025. The net discount is accreted into interest income over the remaining lives of the related loans on a level yield basis.
Construction and land development loans increased $223.1 million, or 31%, totaling $947.0 million at September 30, 2026, compared to December 31, 2025. These loans, extended to both commercial and consumer customers, are collateralized by and for the purpose of funding land development and construction projects. Repayment is from the proceeds of the sale, refinancing,
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or permanent financing of the property. The increase reflects a combination of new originations, largely associated with commercial retail and industrial projects, and additional fundings on existing commercial projects.
CRE owner occupied loans totaled $2.2 billion at September 30, 2026, an increase of $133.4 million, or 7% compared to December 31, 2025. CRE owner occupied loans are extended to commercial customers for the purpose of acquiring or refinancing real estate to be occupied by the borrower's business. These loans are collateralized by the subject property and the repayment of these loans is largely dependent on the performance of the company occupying the property.
CRE non-owner occupied loans increased $230.3 million, or 5%, to $4.5 billion at September 30, 2026, from $4.3 billion at December 31, 2025. Non-owner occupied CRE loans are collateralized by properties where the source of repayment is typically from the sale or lease of the property. Within the non-owner occupied CRE portfolio, the largest segment is retail properties, which totaled approximately $1.5 billion at September 30, 2026, with an average loan size of $2.9 million. This segment targets grocery or credit tenant-anchored shopping plazas, single credit tenant retail buildings, smaller outparcels, and other small retail units. The second-largest segment in the non-owner occupied CRE portfolio is industrial or warehouse properties, which totaled $963.9 million at September 30, 2026, with an average loan size of $3.5 million, reflecting continued demand for logistics, distribution, and manufacturing space. Non-owner occupied CRE portfolio loans collateralized by office properties totaled $570.0 million at September 30, 2026, with an average loan size of $1.8 million. This segment targets low to mid-rise suburban offices and is broadly diversified across many types of professional services, with limited exposure to central business districts. Other non-owner occupied CRE loans include $519.9 million collateralized by multi-family residential properties, $230.0 million collateralized by hotels or motels, and $673.0 million collateralized by other property types, including restaurants, schools and recreation centers.
Residential real estate loans increased $182.6 million, or 6%, to $3.3 billion during the nine months ended September 30, 2026. Included in the balance as of September 30, 2026, were $1.4 billion of fixed rate mortgages, $1.1 billion of ARMs, and $763.5 million in home equity loans and HELOCs, compared to $1.3 billion, $1.1 billion, and $743.2 million, respectively, at December 31, 2025. Substantially all residential mortgage originations have been underwritten to conventional loan agency standards, including loan balances that exceed agency value limitations. The average LTV of our HELOC portfolio is 60%, with 34% of the loans being in first lien position at September 30, 2026, compared to an average LTV of 58%, with 35% of the portfolio being in the first lien position at December 31, 2025.
Commercial and financial loans increased $169.9 million, or 7%, from December 31, 2025, totaling $2.5 billion at September 30, 2026. The purpose of these loans may be to provide working capital, asset acquisition or for other business purposes, and are generally supported by projected cash flows of the business, collateralized by business assets, and/or guaranteed by the business owners. The Company continues to exercise a disciplined approach to lending and is benefiting from the investments made in recent years to attract talent from large regional banks across its markets. This talent is onboarding significant new relationships, resulting in increased loan production.
The Company also provides consumer loans, which include installment loans, auto loans, marine loans, and other consumer loans, which increased $6.9 million, or 4%, to total $192.5 million at September 30, 2026, compared to $185.6 million at December 31, 2025.
Loan Concentrations
The Company has developed guardrails to manage loan types that are most impacted by stressed market conditions to minimize credit risk concentration to capital. Outstanding balances for commercial and CRE loan relationships greater than $10 million totaled $4.8 billion, representing 35% of the total portfolio at September 30, 2026, compared to $3.5 billion, or 28%, at December 31, 2025. The Company’s ten largest commercial and CRE funded and unfunded relationships at September 30, 2026 aggregated to $646.1 million, of which $518.9 million was funded, compared to $607.4 million at December 31, 2025, of which $518.4 million was funded.
Concentrations in construction and land development loans and CRE loans are maintained well below regulatory guidelines. Construction and land development and CRE loan concentrations as a percentage of subsidiary bank total risk-based capital were 45% and 250%, respectively, at September 30, 2026, compared to 35% and 224%, respectively, at December 31, 2025. Regulatory guidance suggests limits of 100% and 300%, respectively. On a consolidated basis, construction and land development and CRE loans represent 41% and 227%, respectively, of total consolidated risk-based capital as of September 30, 2026, compared to 33% and 211%, respectively, at December 31, 2025. To determine these ratios, the Company defines CRE in accordance with the guidance on “Concentrations in Commercial Real Estate Lending” (the “Guidance”) issued by the federal bank regulatory agencies in 2006 (and reinforced in 2015), which defines CRE loans as exposures secured by land development and construction, including 1-4 family residential construction, multi-family property, and non-farm nonresidential property where the primary or a significant source of repayment is derived from rental income associated with
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the property (i.e., loans for which 50 percent or more of the source of repayment comes from third party, non-affiliated, rental income) or the proceeds of the sale, refinancing, or permanent financing of the property. Loans to REITs and unsecured loans to developers that closely correlate to the inherent risks in CRE markets would also be considered CRE loans under the Guidance. Loans on owner-occupied CRE are generally excluded. In addition, the Company is subject to a geographic concentration of credit because it primarily operates in Florida.
Nonperforming Loans, TBMs, OREO and Credit Quality
NPAs at September 30, 2026 totaled $76.5 million, and were comprised of $73.3 million of nonaccrual loans and $3.3 million of OREO. Overall, NPAs increased $0.3 million, from $76.3 million as of December 31, 2025. NPAs to total assets at September 30, 2026 decreased to 0.36% from 0.37% at December 31, 2025.
Compared to December 31, 2025, nonaccrual loans increased $1.3 million to $73.3 million, and remain low as a percentage of total loans, at 0.54% at September 30, 2026. Approximately 83% of nonaccrual loans at September 30, 2026 were secured with real estate. A significant portion of nonaccrual loans have collateral values well in excess of balances outstanding, and therefore, no loss is expected.
The tables below set forth details related to nonaccrual loans.
| September 30, 2026 | ||||||||||||||||||||
| (In thousands) | Nonaccrual Loans With No Related Allowance | Nonaccrual Loans With an Allowance | Total Nonaccrual Loans | |||||||||||||||||
| Construction and land development | $ | 471 | $ | 1,311 | $ | 1,782 | ||||||||||||||
| CRE - owner occupied | 7,191 | 6,050 | 13,241 | |||||||||||||||||
| CRE - non-owner occupied | 16,753 | 1,360 | 18,113 | |||||||||||||||||
| Residential real estate | 10,287 | 17,081 | 27,368 | |||||||||||||||||
| Commercial and financial | 6,655 | 4,281 | 10,936 | |||||||||||||||||
| Consumer | 1,449 | 394 | 1,843 | |||||||||||||||||
| Totals | $ | 42,806 | $ | 30,477 | $ | 73,283 | ||||||||||||||
| December 31, 2025 | ||||||||||||||||||||
| (In thousands) | Nonaccrual Loans With No Related Allowance | Nonaccrual Loans With an Allowance | Total Nonaccrual Loans | |||||||||||||||||
| Construction and land development | $ | 4,207 | $ | 1,812 | $ | 6,019 | ||||||||||||||
| CRE - owner occupied | 15,546 | 5,120 | 20,666 | |||||||||||||||||
| CRE - non-owner occupied | 18,202 | 1,173 | 19,375 | |||||||||||||||||
| Residential real estate | 1,448 | 10,654 | 12,102 | |||||||||||||||||
| Commercial and financial | 3,842 | 7,209 | 11,051 | |||||||||||||||||
| Consumer | — | 2,788 | 2,788 | |||||||||||||||||
| Totals | $ | 43,245 | $ | 28,756 | $ | 72,001 | ||||||||||||||
In accordance with regulatory reporting requirements, loans are placed on nonaccrual following the Retail Classification of Loan interagency guidance. The accrual of interest is generally discontinued on loans that become 90 days past due as to principal or interest unless collection of both principal and interest is assured by way of collateralization, guarantees or other security. Consumer loans that become 120 days past due are generally charged off. The loan carrying value is analyzed and any changes are appropriately made quarterly, as described above.
In certain circumstances, the Company provides modifications of loans to borrowers experiencing financial difficulty, which the Company refers to as TBMs. Loans that were modified as TBMs during the three and nine months ended September 30, 2026 are described in “Note 4 - Loans”.
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ACL on Loans
Management establishes the allowance using relevant available information from both internal and external sources, relating to past events, current economic conditions, and reasonable and supportable forecasts. The forecasts of future economic conditions are over a period that has been deemed reasonable and supportable, and in segments where it can no longer develop reasonable and supportable forecasts, the Company reverts to longer-term historical loss experience to estimate losses over the remaining life of the loans. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments.
The Company recorded provision expense of $6.3 million and $16.1 million, respectively, for the three and nine months ended September 30, 2026, compared to $8.4 million and $22.0 million, respectively, for the three and nine months ended September 30, 2025. The Company recorded net charge-offs of $5.4 million and $11.9 million, respectively, in the three and nine months ended September 30, 2026, compared to $3.2 million and $12.7 million, respectively, for the three and nine months ended September 30, 2025.
During the third quarter of 2026, the Company recorded an $8.4 million measurement period adjustment related to an acquired loan that was determined to meet the definition of PCD as of the acquisition date. The measurement period adjustment increased the ACL on acquired PCD loans by $8.4 million based on facts and circumstances that existed at the acquisition date.
The ratio of ACL to total loans was 1.41% at September 30, 2026, 1.42% at December 31, 2025, and 1.34% at September 30, 2025.
Cash and Cash Equivalents and Liquidity Risk Management
Liquidity risk involves the risk of being unable to fund assets with the appropriate duration and rate-based liability, as well as the risk of not being able to meet unexpected cash needs. Liquidity planning and management are necessary to ensure the ability to fund operations cost effectively and to meet current and future potential obligations such as loan commitments and unexpected deposit outflows.
Funding sources primarily include customer-based deposits, collateral-backed borrowings, brokered deposits, cash flows from operations, cash flows from the loan and investment portfolios and asset sales, primarily secondary marketing for residential real estate mortgages. Cash flows from operations are a significant component of liquidity risk management and the Company considers both deposit maturities and the scheduled cash flows from loan and investment maturities and payments when managing risk.
Cash and cash equivalents, including interest-bearing deposits, totaled $303.2 million at September 30, 2026, compared to $388.5 million at December 31, 2025.
Deposits are a primary source of liquidity. The stability of this funding source is affected by numerous factors, including returns available to customers on alternative investments, the quality of customer service levels, perception of safety and competitive forces. Uninsured deposits represented approximately 36% of total deposits at September 30, 2026 compared to 37% at December 31, 2025. This includes public funds under the Florida Qualified Public Depository program, which provides loss protection to depositors beyond FDIC insurance limits. Excluding such balances, the uninsured and uncollateralized deposits were 32% of total deposits at September 30, 2026. The Company has liquidity sources as discussed below, including cash and lines of credit with the FRB and FHLB, that represent 148% of uninsured deposits, and 165% of uninsured and uncollateralized deposits.
In addition to $303.2 million in cash and cash equivalents at September 30, 2026, the Company had $8.5 billion in available borrowing capacity, including $5.3 billion in available collateralized lines of credit, $2.8 billion of unpledged debt securities available as collateral for potential additional borrowings, and available unsecured lines of credit of $348.0 million. The Company may also access funding by acquiring brokered deposits. Brokered deposits at September 30, 2026 totaled $452.6 million, compared to $120.9 million at December 31, 2025.
Contractual maturities for assets and liabilities are reviewed to meet current and expected future liquidity requirements. Sources of liquidity are maintained through a portfolio of high-quality marketable assets, such as residential mortgage loans, debt securities AFS, and interest-bearing deposits. The Company is also able to provide short-term financing of its activities by selling, under an agreement to repurchase, United States Treasury and Government agency debt securities not pledged to secure public deposits or trust funds.
The Company has traditionally relied upon dividends from Seacoast Bank and securities offerings to provide funds to pay the Company’s expenses and to service the Company’s debt. During the third quarter of 2026, Seacoast Bank distributed $110.4
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million to the Company. At September 30, 2026, the Company had cash and cash equivalents at the parent of approximately $186.8 million, compared to $98.1 million at December 31, 2025.
Deposits and Borrowings
Customer relationship funding is detailed in the following table for the periods specified:
| (In thousands) | September 30, 2026 | December 31, 2025 | ||||||||||||||||||||||||
| Noninterest demand | $ | 4,191,935 | $ | 3,897,985 | ||||||||||||||||||||||
| Interest-bearing demand | 3,719,536 | 3,993,225 | ||||||||||||||||||||||||
| Money market | 5,210,770 | 5,141,519 | ||||||||||||||||||||||||
| Savings | 978,269 | 974,694 | ||||||||||||||||||||||||
| Time deposits | 2,027,039 | 2,128,055 | ||||||||||||||||||||||||
| Brokered time certificates | 452,610 | 120,865 | ||||||||||||||||||||||||
| Total deposits | $ | 16,580,159 | $ | 16,256,343 | ||||||||||||||||||||||
| Securities sold under agreements to repurchase | 316,766 | 389,003 | ||||||||||||||||||||||||
Total customer funding1 | $ | 16,444,315 | $ | 16,524,481 | ||||||||||||||||||||||
1Total deposits and securities sold under agreements to repurchase, excluding brokered deposits. Securities sold under agreements to repurchase consists of customer sweep accounts. | ||||||||||||||||||||||||||
The Company benefits from a diverse and granular deposit base that serves as a significant source of strength. Total deposits increased $323.8 million, or 3% annualized, to $16.6 billion at September 30, 2026, when compared to December 31, 2025.
Customer repurchase agreements totaled $316.8 million at September 30, 2026, decreasing $72.2 million, or 19%, from December 31, 2025. Repurchase agreements are offered by Seacoast to select customers who wish to sweep excess balances on a daily basis for investment purposes.
At September 30, 2026 and December 31, 2025, long-term debt included $73.0 million and $72.8 million, respectively, related to trust preferred securities issued by trusts organized or acquired by the Company. At September 30, 2026, the average interest rate in effect on our outstanding subordinated debt related to trust preferred securities was 5.96%, compared to 5.77% at December 31, 2025. All trust preferred securities are guaranteed by the Company on a junior subordinated basis. Other long-term debt at September 30, 2026 totaled $40.0 million and included financing obligations associated with branch properties and subordinated debt acquired through a bank acquisition.
FHLB advances and other borrowings totaled $985.0 million at September 30, 2026 with a weighted-average interest rate of 3.99%, compared to advances outstanding of $835.0 million at December 31, 2025 with a weighted-average interest rate of 3.82%.
Off-Balance Sheet Transactions
In the normal course of business, the Company may engage in a variety of financial transactions that, under GAAP, either are not recorded on the balance sheet or are recorded on the balance sheet in amounts that differ from the full contract or notional amounts. These transactions involve varying elements of market, credit and liquidity risk.
Lending commitments include unfunded loan commitments and standby and commercial letters of credit. For loan commitments, the contractual amount of a commitment represents the maximum potential credit risk that could result if the entire commitment had been funded, the borrower had not performed according to the terms of the contract, and no collateral had been provided. A large majority of loan commitments and standby letters of credit expire without being funded, and accordingly, total contractual amounts are not representative of actual future credit exposure or liquidity requirements. Loan commitments and letters of credit expose the Company to credit risk in the event that the customer draws on the commitment and subsequently fails to perform under the terms of the lending agreement.
For commercial customers, loan commitments generally take the form of revolving credit arrangements. For retail customers, loan commitments generally are lines of credit secured by residential property. These instruments are not recorded on the balance sheet until funds are advanced under the commitment. Unfunded commitments to extend credit were $3.8 billion at September 30, 2026 and $3.5 billion at December 31, 2025.
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In the normal course of business, the Company and Seacoast Bank enter into agreements, or are subject to regulatory agreements that result in cash, debt and dividend restrictions. A summary of the most restrictive items follows:
Seacoast Bank may be required to maintain reserve balances with the FRB. There was no reserve requirement at September 30, 2026 or December 31, 2025.
Under FRB regulation, Seacoast Bank is limited as to the amount it may loan to its affiliates, including the Company, unless such loans are collateralized by specified obligations. At September 30, 2026, the maximum amount available for transfer from Seacoast Bank to the Company in the form of loans approximated $268.4 million, if the Company has sufficient acceptable collateral. There were no loans made to affiliates during the nine months ended September 30, 2026.
Capital Resources
The Company’s equity capital at September 30, 2026 decreased $116.9 million, or 4%, from December 31, 2025 to $2.6 billion. Changes in equity included decreases in AOCI, the issuance of cash dividends on common and preferred stock, and the repurchase of common stock, partially offset by increases from net income.
In conjunction with the acquisition of VBI on October 1, 2025, the Company issued non-voting convertible preferred stock, and each 1/1000th of a share of preferred stock is convertible into one share of Seacoast common stock, subject to certain restrictions. Holders of preferred stock are entitled to receive ratable dividends when dividends are concurrently declared and payable on the shares of Seacoast common stock. See "Note 11 – Business Combinations," for further detail. The convertible preferred stock at September 30, 2026 totaled $343.1 million.
Activity in shareholders’ equity for the nine months ended September 30, 2026 and 2025 follows:
| (In thousands) | Nine Months Ended September 30, 2026 | Nine Months Ended September 30, 2025 | ||||||||||||
| Balance at beginning of period | $ | 2,712,662 | $ | 2,183,243 | ||||||||||
| Net income | 151,298 | 110,618 | ||||||||||||
| Stock-based compensation expense | 16,209 | 11,445 | ||||||||||||
| Common stock transactions related to stock-based employee benefit plans | 493 | (1,289) | ||||||||||||
| Issuance of common stock and conversion of options pursuant to acquisition | — | 54,547 | ||||||||||||
| Repurchase of common stock | (39,509) | — | ||||||||||||
Dividends on common stock ($0.57 per share and $0.54 per share, respectively) | (56,019) | (46,876) | ||||||||||||
Dividends on preferred stock ($0.57 per 1/1000th share) | (6,414) | — | ||||||||||||
| Change in AOCI | (182,972) | 66,444 | ||||||||||||
| Balance at end of period | $ | 2,595,748 | $ | 2,378,132 | ||||||||||
Capital ratios are well above regulatory requirements for well-capitalized institutions. Management’s use of risk-based capital ratios in its analysis of the Company’s capital adequacy are not GAAP financial measures. Seacoast’s management uses these measures to assess the quality of capital and believes that investors may find it useful in their analysis of the Company. The capital measures are not necessarily comparable to similar capital measures that may be presented by other companies and Seacoast does not nor should investors consider such non-GAAP financial measures in isolation from, or as a substitute for GAAP financial information (see “Note 8 – Regulatory Capital”).
| September 30, 2026 | Seacoast (Consolidated) | Seacoast Bank | Minimum to be Well- Capitalized1 | |||||||||||||||||
| Total Risk-Based Capital Ratio | 15.47% | 14.05% | 10.00% | |||||||||||||||||
| Tier 1 Capital Ratio | 14.08 | 12.82 | 8.00 | |||||||||||||||||
| CET1 Ratio | 11.33 | 12.82 | 6.50 | |||||||||||||||||
| Leverage Ratio | 10.46 | 9.51 | 5.00 | |||||||||||||||||
1For subsidiary bank only. | ||||||||||||||||||||
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The Company and Seacoast Bank are subject to various general regulatory policies and requirements relating to the payment of dividends, including requirements to maintain adequate capital above regulatory minimums. The appropriate federal bank regulatory authority may prohibit the payment of dividends where it has determined that the payment of dividends would be an unsafe or unsound practice. The Company is a legal entity separate and distinct from Seacoast Bank and its other subsidiaries, and the Company’s primary source of cash and liquidity, other than securities offerings and borrowings, is dividends from its bank subsidiary. Without OCC approval, Seacoast Bank can pay $40.1 million of dividends to the Company.
The OCC and the Federal Reserve have policies that encourage banks and BHCs to pay dividends from current earnings, and have the general authority to limit the dividends paid by national banks and BHCs, respectively, if such payment may be deemed to constitute an unsafe or unsound practice. If, in the particular circumstances, either of these federal regulators determined that the payment of dividends would constitute an unsafe or unsound banking practice, either the OCC or the Federal Reserve may, among other things, issue a cease and desist order prohibiting the payment of dividends by Seacoast Bank or us, respectively. The board of directors of a BHC must consider different factors to ensure that its dividend level, if any, is prudent relative to the organization’s financial position and is not based on overly optimistic earnings scenarios such as any potential events that may occur before the payment date that could affect its ability to pay, while still maintaining a strong financial position. As a general matter, the FRB has indicated that the board of directors of a BHC, such as Seacoast, should consult with the FRB and eliminate, defer, or significantly reduce the BHC’s dividends if: (i) its net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends; (ii) its prospective rate of earnings retention is not consistent with its capital needs and overall current and prospective financial condition; or (iii) it will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios.
The Company has paid quarterly dividends to the holders of its common stock since the second quarter of 2021. Whether the Company continues to pay quarterly dividends and the amount of any such dividends will be at the discretion of the Company’s Board of Directors and will depend on the Company’s earnings, financial condition, results of operations, business prospects, capital requirements, regulatory restrictions, and other factors that the Board of Directors may deem relevant.
The Company has seven wholly owned trust subsidiaries that have issued trust preferred stock. Trust preferred securities from acquisitions were recorded at fair value when acquired. All trust preferred securities are guaranteed by the Company on a junior subordinated basis. The Company believes its trust preferred securities qualify as Tier 1 capital under FRB’s regulatory capital rules. A phase out period begins in June 2027, at which time the trust preferred securities will transition to Tier 2 capital over a three year period.
On March 19, 2026, U.S. banking regulators requested comments on three proposals to modernize the regulatory capital framework for banks of all sizes. The proposals are intended to streamline capital requirements and better align regulatory capital with risk while maintaining the safety and soundness of the banking system. The comment period for all three proposals ended on June 18, 2026. The Company continues to evaluate the potential impact of the proposals and monitor regulatory developments, including any final rulemaking and implementation timelines.
Critical Accounting Policies and Estimates
The Company’s critical accounting policies are discussed in the Management’s Discussion and Analysis of Financial Condition and Results of Operations in Seacoast’s Annual Report on Form 10-K for the year ended December 31, 2025. Significant accounting policies are discussed in “Note 1 – Significant Accounting Policies” in Form 10-K for the year ended December 31, 2025. Disclosures regarding the effects of new accounting pronouncements are included in “Note 1 – Basis of Presentation” in this report. There have been no changes to the Company’s critical accounting policies during 2026.
Interest Rate Sensitivity
Fluctuations in interest rates may result in changes in the fair value of the Company’s financial instruments, cash flows and net interest income. This risk is managed using simulation modeling to calculate the most likely interest rate risk. The objective is to optimize the Company’s financial position, liquidity, and net interest income while limiting volatility.
Senior management regularly reviews the overall interest rate risk position and evaluates strategies to manage the risk. The Company uses simulation analysis to monitor changes in net interest income due to changes in market interest rates. The simulation of rising, declining and flat interest rate scenarios allows management to monitor and adjust balance sheet exposures to assess the impact of market interest rate swings. The analysis of the impact on net interest income is subjected to instantaneous changes in market rates and is monitored at least quarterly.
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The following table presents the ALCO simulation model’s projected impact of a change in interest rates on the net interest income for the 12 and 24 month periods beginning October 1, 2026, holding all balances on the balance sheet static. It is important to note that the results in the table below assume parallel shifts in the yield curve and do not take into account changes in the yield curve slope nor changes in balance sheet size or mix.
| % Change in Projected Baseline | ||||||||||||||
| Net Interest Income | ||||||||||||||
| September 30, 2026 | ||||||||||||||
| Change in Interest Rates | 1-12 months | 13-24 months | ||||||||||||
| +3.00% | (3.5)% | 2.5% | ||||||||||||
| +2.00% | (1.4)% | 2.6% | ||||||||||||
| +1.00% | (0.3)% | 1.6% | ||||||||||||
| Current | —% | —% | ||||||||||||
| -1.00% | 1.9% | 0.1% | ||||||||||||
| -2.00% | 4.2% | 0.2% | ||||||||||||
| -3.00% | 5.7% | (1.1%) | ||||||||||||
The computations of interest rate risk do not necessarily include certain actions management may undertake to manage this risk in response to changes in interest rates. Management may adjust asset or liability pricing or structure in order to manage interest rate risk through an economic cycle. This may include the use of investment portfolio purchases or sales or the use of derivative financial instruments, such as interest rate swaps, options, caps, floors, futures or forward contracts.
Effects of Inflation and Changing Prices
The consolidated statements and related financial data presented herein have been prepared in accordance with U.S. GAAP, which require the measurement of financial position and operating results in terms of historical dollars, without considering changes in the relative purchasing power of money, over time, due to inflation.
Unlike most industrial companies, virtually all of the assets and liabilities of a financial institution are monetary in nature. As a result, interest rates have a more significant impact on a financial institution’s performance than the general level of inflation. However, inflation affects financial institutions by increasing their cost of goods and services purchased, as well as the cost of salaries and benefits, occupancy expense, and similar items. Inflation and related increases in interest rates generally decrease the market value of investments and loans held and may adversely affect liquidity, earnings, and shareholders’ equity. Mortgage origination and refinancing tends to slow as interest rates increase, and higher interest rates likely will reduce the Company’s earnings from such activities and the income from the sale of residential mortgage loans in the secondary market. A decline in interest rates would generally have the opposite impact.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
See also Management’s discussion and analysis “Interest Rate Sensitivity.”
Market risk refers to potential losses arising from changes in interest rates, and other relevant market rates or prices.
Interest rate risk, defined as the exposure of net interest income and EVE to adverse movements in interest rates, is the Company’s primary market risk, and mainly arises from the structure of the balance sheet (non-trading activities). The Company is also exposed to market risk in its investing activities. The ALCO meets regularly and is responsible for reviewing the interest rate sensitivity position of the Company and establishing policies to monitor and limit exposure to interest rate risk. The policies established by the ALCO are reviewed and approved by the Company’s board of directors. The primary goal of interest rate risk management is to control exposure to interest rate risk, within policy limits approved by the board of directors. These limits reflect the Company’s tolerance for interest rate risk over short-term and long-term horizons.
The Company also performs valuation analyses, which are used for evaluating levels of risk present in the balance sheet that might not be taken into account in the net interest income simulation analyses. Whereas net interest income simulation highlights exposures over a relatively short time horizon, valuation analysis incorporates all cash flows over the estimated remaining life of all balance sheet positions. The valuation of the balance sheet, at a point in time, is defined as the discounted present value of asset cash flows minus the discounted value of liability cash flows, the net result of which is the EVE. The
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sensitivity of EVE to changes in the level of interest rates is a measure of the longer-term re-pricing risks and options risks embedded in the balance sheet. Similar to net interest income simulation, EVE uses instantaneous changes in rates. Results of both net interest income simulation and EVE analyses are sensitive to changes in key modeling assumptions.
EVE values only the current balance sheet and does not incorporate the reinvestment assumptions that are used in the net interest income simulation model. As with the net interest income simulation model, assumptions about the timing and variability of balance sheet cash flows are critical in the EVE analysis. Particularly important are the assumptions driving prepayments and the expected changes in balances and pricing of the indeterminate maturity deposit portfolios. Stable deposits are a more significant funding source for the Company, making the estimated lives attached to stable deposits more important to the accuracy of our EVE modeling. The Company periodically reassesses its assumptions regarding the indeterminate lives of core deposits utilizing an independent third-party resource to assist.
The following table presents the projected impact of a change in interest rates on the balance sheet. This change in interest rates assumes parallel shifts in the yield curve and does not take into account changes in the slope of the yield curve.
| Change in Interest Rates | % Change in | |||||||
| Economic Value of | ||||||||
| Equity | ||||||||
| +3.00% | (18.8)% | |||||||
| +2.00% | (11.7)% | |||||||
| +1.00% | (5.3)% | |||||||
| Current | —% | |||||||
| -1.00% | 4.6% | |||||||
| -2.00% | 9.3% | |||||||
| -3.00% | 12.5% | |||||||
While an instantaneous and severe shift in interest rates is used in this analysis, a gradual shift in interest rates would have a much more modest impact. Since EVE measures the discounted present value of cash flows over the estimated lives of instruments, the change in EVE does not directly correlate to the degree that earnings would be impacted over a shorter time horizon, i.e., the next fiscal year. Further, EVE does not consider factors such as future balance sheet growth, changes in product mix, change in yield curve relationships, and changing product spreads that could mitigate the adverse impact of changes in interest rates.
Item 4. CONTROLS AND PROCEDURES
The Company’s management, with the participation of its chief executive officer and chief financial officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act) as of September 30, 2026 and concluded that those disclosure controls and procedures are effective.
During the quarter ended September 30, 2026, there have been no changes in internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
The Company and its subsidiaries, because of the nature of their business, are at all times subject to numerous legal actions, threatened or filed. Management presently believes that none of the legal proceedings to which it is a party are likely to have a materially adverse effect on the Company’s consolidated financial position, or operating results or cash flows.
Item 1A. Risk Factors
In addition to the other information set forth in this report, you should consider the factors discussed in “Part I, Item 1A. Risk Factors” in our report on Form 10-K for the year ended December 31, 2025, which could materially affect our business,
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financial condition and prospective results. The risks described in this report, in our Form 10-K or our other SEC filings are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or future results. There have been no material changes with respect to the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
During the three months ended September 30, 2026, the Company repurchased shares of its common stock as indicated in the following table:
| Period | Total Number of Shares Purchased1 | Average Price Paid Per Share | Total Number of Shares Purchased as part of Public Announced Plan | Maximum Value of Shares that May Yet be Purchased Under the Plan (in thousands) | ||||||||||||||||||||||
| 7/1/26 to 7/31/26 | 7,525 | $ | 33.77 | — | $ | 117,000 | ||||||||||||||||||||
| 8/1/26 to 8/31/26 | — | 34.54 | 37,771 | 115,696 | ||||||||||||||||||||||
| 9/1/26 to 9/30/26 | — | 32.48 | 154,299 | 110,684 | ||||||||||||||||||||||
| Total - 3rd Quarter | 7,525 | 32.92 | 192,070 | $ | 110,684 | |||||||||||||||||||||
1Includes shares that were repurchased to pay for the exercise of stock options or for income taxes owed on vesting shares of restricted stock. These shares were not purchased under the Company’s stock repurchase plan to repurchase shares. | ||||||||||||||||||||||||||
On December 19, 2025, the Company’s Board of Directors authorized the renewal of the Company’s share repurchase program, under which the Company may, from time to time, purchase up to $150 million of its shares of outstanding common stock. Under the share repurchase program, which will expire on December 31, 2026, repurchases will be made, if at all, in accordance with applicable securities laws and may be made from time to time in the open market, by block purchase or by negotiated transactions. The amount and timing of repurchases, if any, will be based on a variety of factors, including share acquisition price, regulatory limitations, market conditions and other factors. The program does not obligate the Company to purchase any of its shares, and may be terminated or amended by the Board of Directors at any time prior to its expiration date.
192,070 shares and 1,261,378 shares, respectively, of the Company’s common stock were repurchased under the program during the three and nine months ended September 30, 2026.
Item 3. Defaults upon Senior Securities
None.
Item 4. Mine Safety Disclosures
None.
Item 5. Other Information
Trading arrangements
There were no Rule 10b5-1 or non-Rule 10b5-1 trading arrangements adopted terminated
Item 6. Exhibits
Exhibit 2.1. Agreement and Plan of Merger dated February 27, 2025 by and among the Company, Seacoast National Bank, Heartland Bancshares, Inc. and Heartland National Bank incorporated herein by reference from Exhibit 2.1 to the Company’s Form 8-K, filed March 5, 2025. | |||||
Exhibit 2.2. Agreement and Plan of Merger dated May 29, 2025 by and among the Company, Seacoast National Bank, Villages Bancorporation, Inc. and Citizens First Bank incorporated herein by reference from Exhibit 2.1 to the Company’s Form 8-K, filed May 29, 2025. | |||||
Exhibit 3.1.1 Amended and Restated Articles of Incorporation Incorporated herein by reference from Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q, filed May 10, 2006. | |||||
Exhibit 3.1.2 Articles of Amendment to the Amended and Restated Articles of Incorporation Incorporated herein by reference from Exhibit 3.1 to the Company’s Form 8-K, filed December 23, 2008. | |||||
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Exhibit 3.1.3 Articles of Amendment to the Amended and Restated Articles of Incorporation Incorporated herein by reference from Exhibit 3.4 to the Company’s Form S-1, filed June 22, 2009. | |||||
Exhibit 3.1.4 Articles of Amendment to the Amended and Restated Articles of Incorporation Incorporated herein by reference from Exhibit 3.1 to the Company’s Form 8-K, filed July 20, 2009. | |||||
Exhibit 3.1.5 Articles of Amendment to the Amended and Restated Articles of Incorporation Incorporated herein by reference from Exhibit 3.1 to the Company’s Form 8-K, filed December 3, 2009. | |||||
Exhibit 3.1.6 Articles of Amendment to the Amended and Restated Articles of Incorporation Incorporated herein by reference from Exhibit 3.1 to the Company’s Form 8-K/A, filed July 14, 2010. | |||||
Exhibit 3.1.7 Articles of Amendment to the Amended and Restated Articles of Incorporation Incorporated herein by reference from Exhibit 3.1 to the Company’s Form 8-K, filed June 25, 2010. | |||||
Exhibit 3.1.8 Articles of Amendment to the Amended and Restated Articles of Incorporation Incorporated herein by reference from Exhibit 3.1 to the Company’s Form 8-K, filed June 1, 2011. | |||||
Exhibit 3.1.9 Articles of Amendment to the Amended and Restated Articles of Incorporation Incorporated herein by reference from Exhibit 3.1 to the Company’s Form 8-K, filed December 13, 2013. | |||||
Exhibit 3.1.10 Articles of Amendment to the Amended and Restated Articles of Incorporation Incorporated herein by reference from Exhibit 3.1 to the Company’s Form 8-K, filed May 30, 2018. | |||||
Exhibit 3.1.11 Articles of Amendment to the Amended and Restated Articles of Incorporation Incorporated herein by reference from Exhibit 3.1 to the Company’s Form 8-K, filed May 23, 2023. | |||||
Exhibit 3.1.12 Articles of Amendment to the Amended and Restated Articles of Incorporation Incorporated herein by reference from Exhibit 3.1 to the Company’s Form 8-K, filed May 22, 2025. | |||||
Exhibit 3.1.13 Articles of Amendment to the Amended and Restated Articles of Incorporation Incorporated herein by reference from Exhibit 3.1 to the Company’s Form 8-K filed May 20, 2026 | |||||
Exhibit 3.1.14 Certificate of Designations of the Series A Non-Voting Preferred Stock of Seacoast Incorporated herein by reference from Exhibit 3.1 to the Company’s Form 8-K, filed October 6, 2025. | |||||
Exhibit 3.2 Amended and Restated By-laws of the Company Incorporated herein by reference from Exhibit 3.1 to the Company’s Form 8-K, filed October 26, 2020. | |||||
Exhibit 31.1 Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||
Exhibit 31.2 Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||
Exhibit 32.1 Statement of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||
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Exhibit 32.2 Statement of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||
| Exhibit 101 | The following materials from Seacoast Banking Corporation of Florida’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 formatted in Inline XBRL: (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Cash Flows, (v) the Consolidated Statements of Shareholders’ Equity and (vi) the Notes to the Consolidated Financial Statements, tagged as blocks of text and including detailed tags. | |||||||
| Exhibit 104 | The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, formatted in Inline XBRL. | |||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| SEACOAST BANKING CORPORATION OF FLORIDA | |||||
| November 4, 2026 | /s/ Charles M. Shaffer | ||||
| Charles M. Shaffer | |||||
| Chairman and Chief Executive Officer | |||||
| November 4, 2026 | /s/ Tracey L. Dexter | ||||
| Tracey L. Dexter | |||||
| Executive Vice President and Chief Financial Officer | |||||
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