0001628280-26-012787
SEC filingSeacoast Banking Corporation of Florida reported strong financial results for FY 2025, with net income of $144.9 million, a 20% increase from $121.0 million in FY 2024. This growth was driven by a 28% increase in net interest income to $553.5 million, supported by a 34 basis point expansion in the net interest margin to 3.58%. Total assets grew 37% year-over-year to $20.84 billion, largely due to acquisitions. The company maintained a strong capital position with a Tier 1 capital ratio of 14.48% and a tangible equity to tangible assets ratio of 9.31%. Looking forward, Seacoast expects continued organic loan growth in the high single digits for 2026, supported by its low 78% loan-to-deposit ratio and disciplined credit strategy.
Seacoast Banking Corporation of Florida delivered strong financial performance in FY 2025, with net income increasing 20% to $144.9 million compared to $121.0 million in FY 2024. This growth was primarily driven by a 28% increase in net interest income to $553.5 million, supported by a 34 basis point expansion in the net interest margin to 3.58%. Total revenue (net interest income plus noninterest income) reached $652.6 million, representing 27% year-over-year growth. The company's asset base expanded significantly by 37% to $20.84 billion, largely attributable to the acquisitions of Heartland Bancshares, Inc. in Q3 2025 and Villages Bancorporation, Inc. in Q4 2025, which added approximately $5.3 billion in assets. Adjusted net income, which excludes merger and integration costs and other non-GAAP adjustments, was $169.5 million, representing a 28% increase from the prior year.
Net interest income growth of $121.5 million to $553.5 million was the primary revenue driver, representing 85% of total revenue. This increase resulted from both balance sheet growth and improved margins. Average interest-earning assets increased 16% to $15.5 billion, while the cost of average total deposits decreased 44 basis points to 1.79%. Noninterest income totaled $99.2 million, a 19% increase from $83.4 million in FY 2024, accounting for 15% of total revenue. Key contributors included service charges on deposit accounts ($23.4 million, up 12%), wealth management income ($18.6 million, up 22%), and BOLI income ($12.4 million, up 23%). Mortgage banking income showed significant growth to $4.7 million from $1.8 million, reflecting the addition of mortgage banking activities from the VBI acquisition.
The net interest margin expanded 34 basis points to 3.58% in FY 2025, driven by lower deposit costs and strategic securities purchases. Loan yields increased 4 basis points to 5.97%, while securities yields increased 30 basis points to 3.98%. The cost of funds decreased 38 basis points to 1.94%. Operating margin (income before income taxes divided by total revenue) was 28.6%. The provision for credit losses was $51.3 million compared to $16.3 million in FY 2024, with $24.6 million representing day-1 provisions for credit losses on loans added through bank acquisitions. The allowance for credit losses coverage ratio increased to 1.42% of total loans from 1.34% at December 31, 2024. Noninterest expenses totaled $414.9 million, including $32.4 million in merger and integration costs, with adjusted noninterest expense of $382.4 million representing a 14% increase from the prior year.
Net cash provided by operating activities was $188.1 million in FY 2025. The company used $706.8 million in investing activities, primarily for securities purchases and net new loans, while financing activities provided $430.6 million through increased borrowings. Total assets of $20.84 billion included loans of $12.63 billion (net of ACL), securities of $5.75 billion, and cash and cash equivalents of $388.5 million. Total deposits grew 33% to $16.26 billion, with uninsured deposits representing 37% of total deposits. The company maintained strong liquidity with $7.6 billion in available borrowing capacity. Shareholders' equity increased 24% to $2.71 billion, supported by net income of $144.9 million and the issuance of $357.2 million in common stock for acquisitions. Capital ratios remained well above regulatory requirements, with a total risk-based capital ratio of 15.89% and Tier 1 capital ratio of 14.48%.
For 2026, Seacoast expects continued organic loan growth at a rate in the high single digits, supported by commercial production growth and residential mortgage capabilities from the VBI acquisition. The company's low 78% loan-to-deposit ratio provides significant capacity for growth while maintaining disciplined credit strategy. Management expects organic deposit growth in the low to mid single digits based on current assumptions. The company completed a securities portfolio repositioning in January 2026, selling securities with an average book yield of 1.9% and reinvesting proceeds in primarily agency mortgage-backed securities with an average taxable equivalent book yield of 4.8%, resulting in a pre-tax loss of approximately $39.5 million that will impact Q1 2026 results. Integration activities for the VBI acquisition are expected to be completed early in Q3 2026.