SBCF · Seacoast Banking Corporation of Florida

Seacoast’s Q1 2026 results reflect a deliberate, strategic pivot toward higher-yielding assets and disciplined balance sheet management. The $39.5 million loss from repositioning $277.0 million of low-yield available-for-sale securities—replaced with agency MBS yielding 4.8%—was a one-time, pre-tax expense that directly contributed to a 24 basis point increase in securities yield and underpinned the 17 bps expansion in net interest margin to 3.83%. This action, combined with a 13 bps decline in deposit cost to 1.54% and stable loan yields (5.96%), drove core net interest income up 1% quarter-over-quarter to $176.5 million (per Exhibit 99.1) or $178.2 million (per Exhibit 99.2), confirming execution on margin improvement. Adjusted net income surged 42% q/q and 111% y/y to $67.8 million, underscoring the effectiveness of the repositioning and ongoing operating leverage: noninterest expense fell 6% q/q to $122.2 million despite acquisition-related costs, and the efficiency ratio improved to 59.47%. Organic deposit growth of 7% annualized—including 29% growth in noninterest-bearing deposits—and a 76% loan-to-deposit ratio signal continued franchise strength and funding stability. Management explicitly tied these outcomes to its 2026 guidance, citing the upcoming Villages Bancorporation conversion and 'fortress balance sheet' as catalysts for unlocking 'full earnings power.' While GAAP net income was depressed by the securities loss, the adjusted metrics and forward-looking commentary—including sustained wealth management growth (+33% AUM YoY) and robust commercial pipeline (+16% YoY)—indicate durable momentum in core revenue drivers and capital deployment discipline.